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★ HPCL delights customers by superior understanding and fulfilling their stated and latent needs with innovative product and services. ★ HPCL commands highest reputation and is known for its sensitivity and responsiveness for concerns of its customers and other stakeholders. ★ HPCL always acts faster than the competitors in the most cost effective way. ★ HPCL is the highest performer in Rate of Growth and Return on Investment. ★ HPCL is a Learning and Innovative Organization. ★ HPCL provides an environment of trust, pride and camaraderie
Our Corporate Headquarters at Mumbai
At a Glance
Dear Shareholder It gives me pleasure to present before you the following significant details of your Corporation : HOW YOUR CORPORATION PERFORMED : Area of Performance Crude Thruput (MMT) Market Sales (MMT) Gross Sales (Rs. Crores) Gross Profit (Rs. Crores) Net Profit (Rs. Crores) Dividend (%age) Net Worth (Rs. Crores) Earnings Per Share (Rs.) 2004-05 13.94 20.09 64,690 2,382 1,277 150 8,828 37.69 2003-04 13.70 19.53 56,333 3,643 1,904 220 7,743 56.18
YOUR CORPORATION’S INFRASTRUCTURE : Refineries of Mumbai & Visakhapatnam Product Pipelines – *Mumbai-Pune *Visakh-Vijayawada-Secunderabad Regional Offices – 85 Terminals/Installations/TOPs - 36 Depots - 100 ASFs - 10 Retail Outlets - 6667 SKO/LDO Dealers - 1648 LPG Distributors - 2153 LPG Customers - 2.17 Crores
CURRENT MAJOR PROJECTS : Upgradation of facilities of Mumbai & Visakh Refineries of an expenditure of Rs. 2800 Crores. New Pipeline between Mundra & Delhi and Extension of Mumbai – Pune Pipeline to Solapur of an expenditure of Rs. 1960 Crores. Upgradation, Automation and New facilities for the Marketing Division to strengthen marketing infrastructure at an expenditure of Rs. 1400 Crores. Expansion and Diversification on own and through ventures and tie-ups. Important current activities, future plans and detailed overview of HPCL as well as Petroleum Sector have been covered by me separately (Page No. 4) Your Corporation would continue to perform strongly and thereby instill confidence in you to continue your association for a long time.
53rd Annual Report 2004-05
Signing of Deed of Assurance and relaunch of Sri Guru Gobind Singh Refineries. Seen in the picture are Hon'ble Minister of Petroleum & Natural Gas and Panchayati Raj, Shri Mani Shankar Aiyar, Hon'ble Chief Minister of Punjab, Shri Amarinder Singh and Shri M.B. Lal, C&MD Distribution of Mobile PCOs by the Corporation to Physically Challenged persons below poverty line - Seen in the picture are Hon'ble Chief Minister, Smt. Sheila Dikshit, Government of Delhi and Shri M. B. Lal, C&MD
Hon'ble Minister of Petroleum & Natural Gas and Panchayati Raj Shri Mani Shankar Aiyar presenting the NPMP Award of Excellence for Project Management to Shri M. B. Lal, C&MD. Also, seen in the picture is Shri S.C. Tripathi, Secretary to Government of India, Ministry of Petroleum & Natural Gas (MOP&NG)
Hon'ble Minister of Home Affairs Shri Shivraj V. Patil presenting the Excellence Award for outstanding contribution to the Petroleum Industry to Shri M.B.Lal, C&MD at a function of Telugu Academy, New Delhi
...........................................................................Contents Chairman's Message...................................................... 114 Cash Flow Statement ......... 105 Auditors' Report ............................... 178 3 ............. Auditors & Bankers.............................................................................................................. 136 C & AG's Comments ...................................................................................................................... 137 Review of Accounts by C & AG......................................... 142 Consolidated Financial Statements ............................................................................ 138 Joint Venture Companies ...................................................................................................... 90 Human Resources Accounting ..... 34 Management Discussion & Analysis Report ............. 106 Balance Sheet ......................... 132 Statement Pursuant to Section 212 ......................... 30 Annexure to Directors' Report .......................... 12 Notice of AGM ................ 135 Social Welfare ............................................................. 143 Corporate Governance Report ................................................................................ 113 Schedules to Accounts ...................... 04 Our Directors ..... 13 Performance Profile ..................................... 11 Offices............................ 20 Directors' Report ...................... 10 Senior Corporate Officers.................... 112 Profit & Loss Account ..................................................................................................... 47 Special Focus Areas ............................................................... 159 Annual Report of Guru Gobind Singh Refineries Limited (Subsidiary Company) .. 09 Functional Directors ......
1904 crores for the financial year 2003-04.64690 crores as compared to Rs.53 MMT for the previous year.8 % increase.70 MMT for the previous year. Kerosene. The financial results of your Corporation for the 12 months period April 2004 – March 2005 have already been published and I am sure you must have seen the same.45 per barrel. Petrol and Diesel would be raised or not. The growth trend in MS/HSD. Our Mumbai Refinery and Visakh Refinery together recorded the highest ever thruput of 13. The turnover during 2004-05 is Rs. Similarly the Aviation and Lubes business line have also made distinct impact in terms of value and growth in the market. Physical Performance The physical performance of the Corporation however has been significant. I am also sure that you must have noticed that despite significant physical performance in terms of increased refinery thruputs.94 MMT. The one significant reason for HPCL’s lower profit for the year was due to the wide mismatch between the crude and product prices and the need for the Corporation to bear the burden of subsidies on products like Kerosene and LPG. I am sure that the reason for the lower profit may also be known to you considering the fact that the hydro carbon sector is constantly in the news.1277 crores as compared to the net profit of Rs. On the refining front the average margins for the year have gone up to $ 5.30 per barrel from the earlier years of $ 4. It may be relating to the new oil and gas finds in our country or the surging crude oil prices and the constant speculation whether the product prices especially that of LPG.09 MMT as compared to 19. 4 . our main product line have been successively increasing by registering highest growth rates in the industry. the Corporation recorded a lower net profit of Rs. A portion of the subsidy was also shared by the upstream companies.53rd Annual Report 2004-05 Dear Shareholder. The marketing volumes achieved were the highest ever at 20. increased refinery margins and increased sales volume.56333 crores in 2003-04 showing 14. as compared to 13.
improved units reliability etc. This has also been improvised as a multipurpose “Kisan Vikas Kendras”. Reduction in operating costs is aimed in all activities across the Corporation. Both the Refineries are currently implementing the Green Fuel Projects at a total cost of Rs. we have set up number of low cost retail rural outlets during the year for supply of quality diesel which are called “Hamara Pumps”. as compared to the previous year. In the Marketing segment. the endeavour is to achieve not only increase in sales volumes but also increased contributions thereon and look for new avenues of growth. Visakh Refinery and Mumbai Refinery are also de-bottlenecking the existing facilities and adding certain new facilities whereby our crude processing capacities would be enhanced from existing 13 MMTs to 16.Chairman's Message Growth Strategy (Contd. pesticide needs etc. automation of activities and striving for reaching global standards in operation.) In the context of continuing pressure on margins. Marketing Downstream oil marketing scenario is witnessing intense competition from not only the PSUs but also private companies. Customers visiting the retail outlets are also being given added facilities like convenient stores. Continuing with our thrust on the rural segment. for the farmers to source their fuel. we are aiming for thruput maximization. combating adulteration through a process of monitoring. expansion and diversifications. improved yield of products. Refining Both Mumbai Refinery and Visakh Refinery have recorded not only higher thruput but also increased GRMs during 2004-05. steps are being taken to enhance the current infrastructure at both Mumbai Refinery and Visakh Refinery. In the Refining Operations. With the refining segment continuing to record positive contributions. information kiosks. the community kitchen has made a deep impact 5 . seeds. HPCL on its part is giving total focus on Quality and Quantity aspects to gain the trust and loyalty of its customers by which HPCL would be seen as a preferred Company to meet their fuel needs. some foreign companies who have entered the segment. vehicle care. I would like to highlight the steps taken in each of these areas. HPCL aims not only to increase value from its core business operations but also look for new avenues for growth. This is being achieved by our constant endeavour to provide quality products and services. Our “Rasoi Ghar”. ATM centres. The State-of-art ‘Club-HP’ Retail outlets stands out distinctly in the urban market. food centres and reward schemes.2800 crores which when completed would enable them to produce Motor Spirit and High Speed Diesel Oil to meet the new Euro Specifications. Every company is making aggressive marketing efforts to gain market share and in this process are offering several value added services to the customers to gain their loyalty.2 MMTs. Concerted thrust by all the SBUs of the Marketing Division has now resulted in the greater visibility of your Corporation in each of the segment. Rural Focus Rural India presents untapped opportunities. capacity augmentation through de-bottlenecking. control. The other strategy has been to reach out and consolidate in the highway segment which is expected to be the new growth area with the cross country road construction projects nearing completion in several areas. which could contribute to higher GRM. Risk Management initiatives have been commenced to stabilise the impact of market / price volatilities. offering a ‘Single Window’ supply point.
In addition. Crude Price and Impact on Margins Crude oil prices witnessed the most dramatic rise in the past year. HPCL in consortium with Oil India Limited have also quoted for oil fields currently offered by Government of India under NELP V and is hopeful of getting some blocks. optimizing product distribution and transportation costs.) in the rural market by making LPG available at affordable price. This was achieved by Prize petroleum in association with M/S Aban Llyod in the development of 3 marginal oil fields at Gujarat. The facilities at the Lubes Unit of the Mumbai Refinery are therefore being enhanced to produce superior Grade II Lubricants which has good market demand. both in India and abroad. The Aviation business line has been registering impressive growth and profitability. Improving unit service factors. It has also acquired a 50% stake in a producing oil well at Sanganpur and has taken further developmental steps in the field. Lubes & Aviation Business The Lubes segment which is not price regulated. it is essential that the Corporation not only retains and consolidates its current position but also look for new areas of business opportunities. The international crude oil markets have witnessed fundamental change in the demand supply scenario. our joint venture has struck its first own crude oil in its on shore marginal field at Gujarat which is a small beginning for a big step ahead. Further. which receive focussed attention resulting in savings to the Corporation. the Corporation is weighing the option of entering these segments in association with reputed Indian and foreign companies. improving the yield of value added products through process improvements in the Refineries and stabilizing the impact of price fluctuations through oil price risk management have been the focus areas during the year as detailed in the Management Discussions Analysis Report. Efficiency. with the average price per barrel of the Indian Basket crude rising from around $32 per barrel in March 2004 to about $49 per barrel in March 2005. details of which have been covered in the report. enhancement of energy efficiencies. Both these segments being capital intensive . Prize petroleum. Productivity In order to mitigate the impact of negative margins on the main product lines. Value Addition. we are also enhancing the supply side infrastructure through new Pipeline Projects. savings in financing and operating costs etc. During the year HPCL opened additional Rasoi Ghars all over the country bringing the total to over 1350. It is in this context that the Corporation has started taking steps for entering the segments of Exploration & Production. sourcing supply of LNG/CNG to meet increasing demand for Gas. setting up of Single Buoy Mooring for receipt of crude through very large crude carriers (VLCC) at a suitable location is also being explored. has potential to contribute considerably to the profitability of the Corporation. Our cost control and cost reduction measures include optimizing crude procurement costs. Diversification To sustain growth and profitability in the coming period. This SBU is continuing with aggressive plans to enhance market share in the aviation segment.53rd Annual Report 2004-05 Chairman's Message (Contd. the Corporation has been taking many initiatives oriented towards value additions and operational improvements in its core lines of refining and marketing. The huge increase in demand across the globe and 6 .
7 . Enable and Enhance capabilities of our employees to meet the requirement of changing market dynamics and environments. Our thrust has been to Empower. The need to support line functions in their activities. the base is our employees who continue to serve with dedication. The ongoing HR initiatives such as “Competency Mapping” to enhance employee capabilities and “Balanced Scorecard” approach to fix performance targets and evaluation are addressing the core of the above requirements. Despite the growth in volume. especially China and India. HPCL is actively exploring use of various innovative tools to cushion the volatilities of such market forces and introduce appropriate risk management practices. Price movements were amplified by the concerns about the insecurity of supply due to natural calamities (like Hurricane Ivan in Gulf of Mexico) and geo-political tensions including terrorism and strikes in oil producing countries. HR Initiatives In our organisation pyramid. The outlook for the short and medium term on the crude oil prices indicate continued high level of crude prices due to changes in the supply/demand scenario. political uncertainities. The current gap between the cost of production and quantum of realisation would continue to impact the future margins unless crude prices comes down considerably. as well as the need to bear the impact of subsidies on SKO and LPG has had a direct effect on the profitability. The other initiative of “Six Sigma” approach to quality improvement has helped us to clearly identify the action areas on each segment of study and as more and more employees are introduced to these concepts the efficiency level of the organisation will improve further. stretched production capacities of producing nations and the limited complexities of Asian refineries.Chairman's Message (Contd.) inability of reserve supply capacity to keep up to demand played a major role in the rise of the crude oil prices. The inventory levels in the industrialized nations have also been a major concern which during the past one year have been close to the lowest in the past and thus impacting crude price volatility. improving efficiency. An important aspect that is being highlighted in the change management process is the need for SBUs to look constantly for other avenues of growth and profitability while endeavouring to improve physical performance. It is also our endeavour to ensure that all the activities of different functions are aligned with the overall corporate objectives. The Government is seized of the issue and is trying to evolve a suitable scheme to minimize the impact on oil companies. efficient treasury management have all started showing positive contributions. ensuring uninterrupted supplies has assumed importance. In the current scenario. including HPCL. Product Pricing Non-revision in the prices of the major finished product lines in tandem with increase in crude oil prices have caused significant impact on the profitability of oil companies including HPCL operating as an integrated refining and marketing company. Initiatives like own sourcing of crude. the reduced margins on prime products like MS and HSD. achieving reduction in costs are being emphasized to all other functions across the Organization. widening basket of crude purchased. Encompassing all these initiatives. the organisation transformation exercise for achieving continuous excellence is also progressing well and a large segment of employees have already gone through this change management process. crude transportation through VLCC. There has been a rapid rise in the demand for oil from Asia.
He is not dependent on us. In our current area of downstream activities which mainly form refining and marketing petroleum products.5 crores to the Prime Minister’s National Relief Fund to provide relief to the tsunami affected people. on our part. We also made a special contribution of Rs. It is consolidating its market position in the urban segment through the process of various initiatives aimed at delighting the customers for their continued loyalty and look at HPCL as a preferred company to meet their fuel needs. including the expenditure required for the initiatives under the exploration and production segments. We are not doing a favour by serving him. vendors. Corporate Social Responsibilities We recognise our obligations to the society.1400 crores towards upgradation. He is not an interruption of our work. B. All these activities. Conclusion Last year. M. the Corporation is enhancing its capabilities in both the segments. Mahatma Gandhi who said The Customer is the most important visitor on our premises.53rd Annual Report 2004-05 Chairman's Message Way Forward (Contd. He is doing us a favour by giving us the opportunity to do so . The Marketing Division is implementing two major product pipeline projects connecting Mundra and Delhi and Loni and Solapur at an estimated cost of Rs.5 crores during 200405 on several welfare measures. The Marketing division will spend further nearly Rs. Our customers include you the esteemed shareholders and the stakeholders like our dealers. He is not an outsider to our business.1960 crores which when completed will enhance the supply capabilities to meet the consumer demand in the northern sector. both in area of environmental protection and social development. the initiatives to consolidate in the downstream segment and slowly but steadily enter upstream segment would enable your Corporation to meet the emerging challenges of increased competition. We are dependent on him. Thank you. I began my message stating that Customer is the King and the definition of Customer by our immortal father of the Nation. We. HPCL has taken several initiatives and is implementing schemes aimed towards upliftment of weaker sections of the society. The Corporation spent about Rs. He is part of it. We look forward to your continued support in this ongoing process. changing energy mix and need for operational excellence and growth. would continue to endeavour to take HPCL further towards growth and profitability by meeting the challenges that we face and grabbing the opportunities that arise. I have repeated this because this definition will hold good forever for every organization. He is the purpose of it. automation and modernization of retail outlets and other facilities.11000 crores to be incurred during the next 3-4 years. LAL 8 . entering the gas segments etc would entail a capital expenditure of about Rs..7. I would also draw your attention to our special focus area relating to the Corporate Social Responsibilities. contractors.) To summarise. business associates and others who have reposed faith on HPCL.
Mathur Director .2005) Shri Rajesh V.Our Directors Shri M.Finance Shri Prabh Das Director (From 03.2005) Shri T.05.05.Refineries (Till 31. Tankiwala Director . Lal Chairman & Managing Director Shri M. Srinivasan Director (Till 20. B. Kulkarni Director Shri C. Ramulu Director .06. Singh Director (From 03.10.2005) Shri D.03. A.Marketing Shri C. S. Nandagopal Director Dr.06. K. Srivastava Director (Till 07.Human Resources Shri A.2005) Shri M.Refineries (From 01. B.05.2004) Shri M. L.2005) Shri Raja G.2005) 9 . B. Shah Director Shri S. Sankar Director Shri Arun Balakrishnan Director . S. Roy Choudhury Director . Mohanty Director (Till 29.
Director . A. C&MD with his team of Functional Directors .Refineries 10 . Shri C. Director . Tankiwala. Ramulu. Roy Choudhury.53rd Annual Report 2004-05 Functional Directors Shri M. Director . Shri S.Marketing & Shri M.Shri Arun Balakrishnan.HR.Finance. Director .B.Lal.
Mukherjee. Hota.K.R. Executive Director Information Technology & Planning Shri S. Executive Director Internal Audit & JVCs Shri A. Vizia Saradhi. Pradhan. DCO Shri D.I/C. Chief Vigilance Officer Shri S. Executive Director Research & Development Shri N.N. Tulaskar. Financial Controller Shri S. Executive Director Corporate Finance Shri K.M. Company Secretar y Shri R. (Special Activities) Shri C. Sharma.Senior Corporate Officers Smt.N. Head . Treasur y & Reimbursement Shri V. Prasad. General Manager Human Resources.R. General Manager Strategy Shri A. Mukherjee.Internal Coaches 11 . Health & Environment Shri K.P. General Manager Payroll.S. General Manager Legal Shri Ajit Singh. General Manager Information Technology Ms. Rao. Hariharan. Deputy General Manager . Parminder H.K. Narayanan. Gupta.K.S. Executive Director Safety. General Manager Enterprise Resource Planning Shri O. Nishi Vasudeva.P. General Manager Human Resources Shri Sandeep Joseph. Executive Director Industrial Relations Shri B. Palav. Bhide. Mathur. Murali. General Manager Upstream Shri G.
17. Chartered Accountants Mumbai N. Raiji & Co.com Zonal Offices East Zone 6. Chartered Accountants Mumbai Bankers State Bank of India Union Bank of India Punjab National Bank Standard Chartered Bank Bank of Baroda Bank of India Citibank N. Corporation Bank ICICI Bank HDFC Bank Branch Auditors B. R&C Building. e-mail: corphqo@hpcl. Visakhapatnam . Scope Minar.700 001. Thalamuthu Natarajan Building. 4th Floor. Mumbai .in website: www. 8. Gandhi Irwin Road. Chembur. 15. 8. North Zone 6th & 7th Floor.110 092. Byculla.400 001. Laxmi Nagar.P. Mumbai . Post Box No.A. South Zone Visakh Refinery Post Box No.400 008. Kapadia & Co.R.M. Jamshedji Tata Road. Rao & Co.co.400 074. West Zone Marketing Headquarters Hindustan Bhavan. North Tower. Sir J. Shoorji Vallabhdas Marg. Kolkata . Chennai . Narayanan 12 .J.D.600 008.V. Patil Marg. Core 1 & 2. Egmore.53rd Annual Report 2004-05 Offices. Chartered Accountants Visakhapatnam Company Secretary Shri N. Mumbai Refinery B. 3045. Road. Delhi . Ballard Estate.530 001. Auditors & Bankers Registered Office and Headquarters Office Petroleum House. 146. Statutory Auditors G. Mumbai .400 020. Church Lane. Mumbai . Post Box No.hindustanpetroleum.
who retires by rotation and is eligible for reappointment. Chavan Auditorium.Notice of Annual General Meeting HINDUSTAN PETROLEUM CORPORATION LIMITED (A Government of India Enterprise) REGISTERED OFFICE : 17 JAMSHEDJI TATA ROAD. To consider and. To appoint a Director in place of Shri T. 2005 and who holds office under the said Article and pursuant to Section 260 of the Companies Act. 1956. “RESOLVED that Shri C. be and is hereby appointed as a Director of the Company liable to retire by rotation”.400 021. 8.11 Lakhs as remuneration to the Statutory Auditors of the Company to be appointed by the Comptroller and Auditor General of India for auditing the Accounts of the Company for the Financial Year 2005-06. Next to Sachivalaya Gymkhana. Ramulu. and who is eligible for re-appointment under the relevant provisions of the Companies Act. “RESOLVED that Shri Prabh Das who was appointed as an Additional Director of the Company by the Board of Directors under Article 112 of the Articles of Association of the Company with effect from May 3. To declare equity dividend for the financial year 2004-2005.00 P. 1956 only upto the date of this Annual General Meeting. Sankar. to pass. To consider and. 4. be and is hereby appointed as a Director of the Company liable to retire by rotation”. the following resolution as an Ordinary Resolution. with or without modification(s). Profit and Loss Account for the year ended on that date and Reports of the Board of Directors and Auditors thereon. and in respect of whom the Company has received a notice in writing from a member signifying his intention to propose him as a candidate for the office of the Director. Singh who was appointed as an Additional Director of the Company by the Board of Directors under Article 112 of the Articles of Association of the Company with effect from May 3. To appoint a Director in place of Shri C. 2005 and who holds office under the said Article and pursuant to Section 260 of the Companies Act. A. if thought fit. 5. with or without modification(s). 2005 and who holds office under the said Article 13 . 6. To appoint a Director in place of Shri Rajesh V. B. MUMBAI 400 020 NOTICE NOTICE is hereby given that the 53rd ANNUAL GENERAL MEETING of the Members of Hindustan Petroleum Corporation Limited will be held on Wednesday. Mumbai . September 21. 1956 only upto the date of this Annual General Meeting. 2005 at 3. and who is eligible for re-appointment under the relevant provisions of the Companies Act. to pass. and in respect of whom the Company has received a notice in writing from a member signifying his intention to propose him as a candidate for the office of the Director. consider and adopt the Balance Sheet as on March 31. 1956. the following resolution as an Ordinary Resolution. L. who retires by rotation and is eligible for reappointment. to transact the following business : ORDINARY BUSINESS : 1. To consider and. B. “RESOLVED that Shri M. To approve payment of Rs. who retires by rotation and is eligible for reappointment. at Y. with or without modification(s). Shah.M. if thought fit. if thought fit. 9. to pass. To receive. 3. the following resolution as an Ordinary Resolution. 2005. SPECIAL BUSINESS : APPOINTMENT OF DIRECTORS : 7. General Jagannath Bhosale Marg. Tankiwala who was appointed as Additional Director holding charge of Office of Director-Refineries of the Company by the Board of Directors under Article 112 of the Articles of Association of the Company with effect from June 1. 2.
matters and things as it may in its absolute discretion deem necessary. of the Companies Act.53rd Annual Report 2004-05 Notice of Annual General Meeting (Contd. be and is hereby appointed as a Director of the Company liable to retire by rotation”. the aggregate of the paid up share capital of the Company and its free reserves that is to say. INCREASE IN THE BORROWING POWERS OF THE COMPANY : 10. difficulty or doubt that may arise in regard to creating security as aforesaid or otherwise considered to be in the best interests of the Company”. if any. To consider and. the consent of the Company be and is hereby accorded to the Board of Directors under Section 293(1)(d) and all other applicable provisions. together with interest costs . be and are hereby authorised to finalise.000 crores (Rupees Five Thousand Crores only) over and above the paid up share capital and free reserves of the Company notwithstanding that it may be beyond the limit of debt equity ratio as provided in Article 67 of the Articles of Association of the Corporation”. 1956 including any statutory modification or reenactment thereof for the time being in force read with Article 67 of the Articles of the Association of the Company to borrow any sum or sums of money from time to time notwithstanding that the money or moneys to be borrowed together with the moneys already borrowed by the Company (apart from temporary loans obtained from the Company’s bankers in the ordinary course of business) may exceed. of the Companies Act 1956 (including any statutory modification or re-enactment thereof. for the time being in force). provided however. to pass.) and pursuant to Section 260 of the Companies Act. charges. 1985. “RESOLVED further that the Securities to be created by the Company for its borrowings as aforesaid may rank with the security already created in the form of mortgage and / or charges already created or to be created in future by the Company as may be agreed to between the Company and concerned parties”. guidelines and laws (including any statutory modification or re-enactment thereof for the time being in force) and subject to all applicable 14 . 1956 and all other applicable rules. and who is eligible for re-appointment under the relevant provisions of the Companies Act. with or without modification(s). regulations. To consider and. if thought fit. 1956. the following resolution as a Special Resolution. reserves not set apart for any specific purpose. the total amount so borrowed and outstanding at any one time shall not exceed Rs. if any. the following resolution as a Special Resolution. as may be agreed to between the Corporation and lenders so as to secure the borrowings by the Company. “RESOLVED THAT the consent of the Company be and is hereby accorded in terms of Section 293 (1) (a) and all other applicable provisions. and in respect of whom the Company has received a notice in writing from a member signifying his intention to propose him as a candidate for the office of the Director. INCREASE IN THE EQUITY HOLDING OF FIIS IN HPCL: 11. if thought fit. the Companies Act. settle and execute such documents/ deeds / writings/ papers / agreements as may be required and to do all acts. under the respective arrangement entered into / to be entered by the Company”.5. “RESOLVED THAT pursuant to applicable provisions. expenses and all other monies payable by the Company to the concerned Lenders/Institutions. 1999 (FEMA). 1956 only upto the date of this Annual General Meeting. proper or desirable and to settle any question. of the Foreign Exchange Management Act. to pass. “RESOLVED further that for the purpose of giving effect to this Resolution. the Board or any Committee or person authorised by the Board. to the Board of Directors of the Company to create/provide Security for the sums borrowed on such terms and conditions and at such form and manner and with such ranking as to priority as the Board in its absolute discretion thinks fit on the assets of the Company. with or without modification(s). deeds. “RESOLVED THAT in supersession of the ordinar y resolution passed by the shareholders in the Extraordinary General Meeting of the Company held on July 23.
on or before September 05. Mumbai . the consent of the Company be and is hereby accorded for investments by Foreign Institutional Investors including their sub-accounts (hereinafter referred to as the “FIIs"). are requested to send the same quoting the Folio number(s). Narayanan Company Secretary Date : August 10. NOTES : 1. 6. “RESOLVED FURTHER THAT the Board or any person/s authorized by the Board be and is hereby authorized to do all such acts. 2005 Regd. 1956 in respect of the Item Nos. and Central Depository Services (India) Ltd. Jamshedji Tata Road. as on September 05. matters and things and execute all documents or writings as may be necessary. 3. subject to the condition that the total holding of all FIIs put together shall not exceed 40% of the paid up equity share capital as may be applicable. quoting their respective Client ID/DP ID Nos. ECS Mandates earlier or if there is any change in the details. by purchase or acquisition from the market under the Portfolio Investment Scheme under FEMA. BY THE ORDER OF THE BOARD N. to our Registrars M/s. if approved at the meeting. 5. Members are requested to bring their copies of the Annual Report to the Meeting. (a) Members holding shares in physical form are requested to advise immediately change in their address. which may be agreed to by the Board of Directors of the Company and/or a duly authorized Committee thereof for the time being exercising the powers conferred by the Board of Directors (hereinafter referred to as “the Board”). who have not given the Bank Particulars/Mandate. for handing over at the venue of the meeting. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY. permissions. (a) Members holding shares in physical form. 2005. Churchgate. duly filled. MCS Ltd. Proxies in order to be effective. deeds. 2. 4. proper or expedient for the purpose of giving effect to this resolution and for matters connected therewith or incidental thereto”.. Dividend on Equity Shares as recommended by the Directors for the year ended March 31.. to M/s. permissions and sanctions and subject to such conditions as may be prescribed by any of the concerned authorities while granting such approvals.) approvals. to their respective Depository Participants and not to M/s. 2005. Members/Proxies attending the Meeting should bring the Attendance Slip. the Registrars at their address given below. Office : 17.400 020. in respect of shares held in electronic form.Notice of Annual General Meeting (Contd. 2005. (b) Shareholders holding shares in dematerialised form are requested to advise immediately change in address. if any. MCS Ltd. or to the Company. MCS Ltd. sanctions. 15 . in the shares of the Company.R. must be deposited at the Registered Office of the Company not less than 48 hours before the time of the meeting. quoting their Folio number(s). will be payable to those eligible members whose names appear : (1) As Beneficial owners. The Explanatory Statement made pursuant to Section 173(2) of the Companies Act. and (2) As Members in the Register of Members of the Company after giving effect to all valid share transfers in physical form lodged with the Company on or before September 05. if any. 2005 as per the list to be furnished by National Securities Depository Ltd. 6 to 11 of the Notice is annexed herewith.
53rd Annual Report 2004-05
Notice of Annual General Meeting
(b) All Shareholders who are holding shares in Dematerialised form are requested to advise change, if any, in details of their bank account/ECS mandates to their respective Depository Participants immediately to enable the Company to pay the dividend accordingly. 7. Members are hereby informed that Dividends which remain unclaimed/unencashed over a period of 7 years have to be transferred by the Company to Investor Education and Protection Fund constituted by the Central Government under Section 205A and 205C of the Companies Act, 1956.
We give below the details of Dividends paid by the Company and their respective due dates of transfer to the Fund of the Central Government if they remain unencashed. Date of declaration of Dividend 21.09.1998 09.09.1999 30.03.2000 08.09.2000 28.09.2001 28.08.2002 30.01.2003 24.09.2003 22.12.2003 09.09.2004 09.12.2004 Dividend for the year 1997-98 1998-99 1999-2000 (Interim) 1999-2000 (Final) 2000-2001 2001-02 (Final) 2002-03 (Interim) 2002-03 (Final) 2003-04 (Interim) 2003-04 (Final) 2004-05 (Interim) Month and year of transfer to the Fund Nov. 2005 Oct. 2006 May 2007 Oct. 2007 Oct. 2008 Sep. 2009 Feb. 2010 Oct. 2010 Jan. 2011 Oct. 2011 Jan. 2012
It may please be noted that no claim can be made by the shareholders for the unclaimed Dividends which have been transferred to the credit of the Investor Education and Protection Fund of the Central Government under the amended provision of Section 205B of the Companies (Amendment) Act, 1999. In view of the above regulation, the shareholders who are yet to encash the dividend are advised to send requests for duplicate dividend warrants in case they have not received the Dividend Warrants for any of the above mentioned financial years and/or revalidation of unencashed Dividend Warrants still held by them to the Registrars and Transfer Agents of the Company so that dividends can be encashed. 8. The address of Registrars and Transfer Agents of the Company is as follows : M/s. MCS Ltd. Unit : Hindustan Petroleum Corporation Ltd., Sri Venkatesh Bhavan, Plot No. 27, Road No.11, MIDC Area, Andheri (East), Mumbai - 400 093.
Notice of Annual General Meeting
9. Appointment/Re-appointment of Directors
At the ensuing Annual General Meeting, S/Shri T. L. Sankar, Rajesh V. Shah and C. Ramulu retire by rotation and being eligible, offer themselves for re-appointment. Shri Prabh Das, Shri C. B. Singh and Shri M.A. Tankiwala who were appointed as Additional Directors during the year are being recommended for appointment as Directors liable to retire by rotation. Details of the abovementioned Directors are given in Annexure to the Notice of the Annual General Meeting. EXPLANATORY STATEMENT IN PURSUANCE OF SECTION 173(2) OF THE COMPANIES ACT, 1956. 6. HPCL is a Government Company within the meaning of Section 617 of the Companies Act, 1956. In terms of the provisions of Section 619 of the Companies Act, 1956, Statutory Auditor/s for a Government Company is/are appointed by the Comptroller and Auditor General of India (C&AG). In terms of Section 224 (8) (aa) of the Companies Act, 1956, the remuneration of the Auditors is required to be fixed by the Company in a General Meeting or in such a manner as the Company in a General Meeting may determine. The Board of Directors of the Company have recommended a remuneration of Rs.11 lakhs plus out of pocket expenses to the Statutory Auditors (including Joint/Branch Auditors, if any) of the Company to be appointed by the C&AG for auditing the Accounts of the Company for the Financial Year 2005-06 for the approval of the shareholders. The Corporation will shortly submit an application to the Comptroller and Auditor General of India, regarding appointment of Statutory Auditors. 7. Shri Prabh Das was appointed as an Additional Director on the Board effective 3.5.2005. In terms of Section 260 of the Companies Act, 1956 and Article 112 of the Articles of Association of the Company, he holds office upto the date of next Annual General Meeting and is eligible for re-appointment. The Company has received a notice proposing the candidature of Shri Prabh Das for the office of Director in terms of Sections 255 and 257 of the Companies Act, 1956. Shri Prabh Das is Joint Secretary in the Ministry of Petroleum and Natural Gas, New Delhi. The Board recommends appointment of Shri Prabh Das. None of the Directors other than Shri Prabh Das are interested in the resolution. 8. Shri C. B. Singh was appointed as an Additional Director on the Board effective 3.5.2005. In terms of Section 260 of the Companies Act, 1956 and Article 112 of the Articles of Association of the Company, he holds office upto the date of next Annual General Meeting and is eligible for re-appointment. The Company has received a notice proposing the candidature of Shri C. B. Singh for the office of Director in terms of Sections 255 and 257 of the Companies Act, 1956. Shri C. B. Singh is Joint Advisor in the Ministry of Petroleum and Natural Gas, New Delhi. The Board recommends appointment of Shri C. B. Singh. None of the Directors other than Shri C. B. Singh are interested in the resolution. 9. Shri M. A. Tankiwala was appointed as Director (Refineries) of the Corporation. He was appointed as an Additional Director on the Board effective 1.6.2005 and in terms of Section 260 of the Companies Act, 1956 and Article 112 of the Articles of Association of the Company, he holds office upto the date of the next Annual General Meeting and is eligible for re-appointment. The Company has received a notice proposing the candidature of Shri M. A. Tankiwala for the office of Director in terms of Sections 255 and 257 of the Companies Act, 1956. Shri M.A. Tankiwala’s association on the Board will be beneficial to the Company. The Board recommends appointment of Shri M.A. Tankiwala. None of the Directors other than Shri M.A. Tankiwala are interested in the resolution.
53rd Annual Report 2004-05
Notice of Annual General Meeting
10. In terms of Section 293(1)(d) of the Companies Act, 1956, the Board of Directors shall not borrow moneys where the moneys to be borrowed together with moneys already borrowed (other than the temporary loans obtained from the Company’s bankers in the ordinary course of business) exceed the aggregate of the paid up capital and free reserves of the Company except with the consent of the shareholders obtained in a General Meeting. The shareholders of the Company at the Extraordinary General Meeting held on July 23, 1985 have accorded their consent to the board to borrow moneys in excess of the paid up capital and free reserves, provided, the aggregate of such borrowings together with moneys already borrowed and outstanding at any one time, shall not exceed Rs.500 crores over and above the paid up share capital and free reserves. Taking into consideration, the investment that would be required in the next 2 to 3 years in ongoing projects in the Refineries (GFEC) and at Marketing division (new Pipeline projects) as well as new projects like grass root Refinery at Visakh, grass root Refinery at Punjab being set up by the Subsidiary Company GGSRL, Exploration and Production initiatives of the Joint Venture Company, Prize Petroleum etc., the Board of Directors of the Company have considered it desirable to enhance the borrowing powers from Rs.500 crores over and above the paid up share capital and free reserves to Rs.5000 crores over and above the paid up share capital and free reserves. The Corporation would be required to provide security for the borrowings. Hence approval under Section 293(1)(a) of the Companies Act is being taken. Accordingly, the resolutions are placed before the shareholders for their approval. None of the Directors are interested in the resolution except to the extent of their shareholdings in the Corporation. The Directors recommend the resolution to be adopted as a Special Resolution by the shareholders. 11. The Reserve Bank of India, by amending the Foreign Exchange Management (Transfers or Issue of Security by a Person Resident Outside India) Regulations, 2000, has raised the limit of investments by Foreign Institutional Investors of the paid up equity capital of Indian Companies, subject to the approval of the Board of Directors and approval of members of the Company by way of a special resolution. The increase in the FIIs limit to 40% will result in increased weightage of the Company’s share in benchmarking international stock market indices. Large number of FIIs direct their investment on the basis of these benchmark indices. Increase the limit for FIIs investment would therefore enable to meet the demand of FII to invest in HPCL shares and thereby resulting in a positive impact in the capital market. None of the Directors are interested in the resolution, except to the extent of their shareholding in the Corporation. The Directors recommend the resolution to be adopted as a special resolution by the shareholders.
BY THE ORDER OF THE BOARD N.R. Narayanan Company Secretary Date : August 10, 2005 Regd.Office : 17, Jamshedji Tata Road, Churchgate, Mumbai - 400 020.
Notice of Annual General Meeting
ANNEXURE TO ITEMS 3 TO 5 AND 7 TO 9 OF THE NOTICE Details of Directors seeking appointment/reappointment at the 53rd Annual General Meeting (in pursuance of Clause 49 of the Listing Agreement) Name of the Director T. L. Sankar Rajesh V. Shah C. Ramulu Prabh Das C. B. Singh M. A. Tankiwala
Date of Birth 21/03/1934 01/10/1951 10/01/1948 30/10/1957 03/01/1960 25/01/1949 Nationality Date of Appointment on the Board Indian Indian Indian Indian Indian Indian
21/01/1999 21/01/1999 14/08/2003 03/05/2005 03/05/2005 01/06/2005
Qualifications M.Sc. Degree in ACA., ACS, (Chemistry), Mathematics, MBA (Leeds, MA (Dev. MBA UK) Eco.), IAS List of • Rain Directorships Calcining held in other Ltd. Companies • KSK Energy Ventures Ltd. • GGSRL • Delhi Power Co. Ltd. • Small Scale Sustainable Infrastructure Development Board • Mukand Ltd. • Mukand Engineers Ltd. • Fusion Investments & Financial Services Ltd. • Catalyst Finance Ltd. • Conquest Investments & Finance Ltd. • Kalyani Mukand Ltd. • Bengal Port Ltd. • Jeewan Ltd. • India Thermal Power Ltd. • ONGC • Prize Petroleum Co. Ltd. • GGSRL • HINCOL • SALPG
IAS, M.A. (Eco.) B.Tech. (Hons), MBA MBA • IOC • EIL • CPCL • Oil India Ltd.
53rd Annual Report 2004-05 Performance Profile Market Sales (incl./Crores 3000 2500 2000 1500 1000 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 20 ./Crores 50000 40000 30000 20000 10000 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 Gross Profit (PBDIT) 4000 CAGR : 10.78% 20 18 16 14 12 FY96 mmt FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 Turnover 70000 CAGR : 17.11% 60000 Rs.66% 3500 Rs. Exports) 22 CAGR : 4.
759.239.06 Million Tonnes 12.64 363.08 6.088.147.61 10.435.04) 8.93 8.14 817.381.02 874.185.626.68 338.41 6.24 0.54 9.513.94 746. Exps.50 787.98 304.52 10.579 179 188 212 572 – (313) 2.34 1.147.90 7.055.387.055.11 18.83 6.59 6.27 1.809.14 19.842 497 2.08 646.076.61 6.775.65 1.85 338.044.19 1.50 3.416 12.69 529.06 56.897.22 6.08 3.818 1.JVCs & Subsidiary .57 6.319.173.319.277.454.02 1.81 5.481.061.33 5.231.53 12.19 52.98 (Exchange Rate as on 31.578.50 2.44 1.09 13.36 678.49 1.32 4.184 64.919 77 1.70 5.166.38 387.87 3.926.722.18 1.32 6.14 1.27 338. (Public Issue exps.82 6.78 5.51 2.11 7.84 1.25 153. Def.91 433.15 697.67 2.39 1.76 5.06 574.12 6.61 714.139.81 502.17 5.742.642.22 9.79 US$ Million 14.67 3.65 1.34 1.79 2.208.37 18.64 786.14 45.85 338.374.53 6.05 20.Others Net Current Assets Misc.48 1.93 8.12 7.20 7.101.069.416 8.57 3.943.65 1.400.44 5.49 – (1.94 6.81 338.08) 9.72 – (1.98 5.43 1.903.87 2004-05 2003-04 2002-03 2001-02 2000-01 Rs.08 2.84 825.84 0.08 1.33 – 448.87 6.403.33 509.33 34.93 6.140.340.33 232.58 55.558.231./ Crores 47. Previous year figures regrouped/reclassified wherever necessar y 2.443. to the extent not written off) Deferred Tax Liability Total WHAT CORPORATION OWES Net Worth Share Capital Reserves Borrowings Total PHYSICAL CRUDE THRUPUT Mumbai Refinery Visakh Refinery PIPELINE THRUPUT MARKET SALES 13.101.76 931.63 6.239 1.393.046.03.77 6.02 – (1.061. 43.08 1.689.277.443.92 2.35 10.2005) 21 .78 10.56 4.754.486.069.85 – 10.02 11.10 6.01 339.98 339.20 347.85 3.171.484.044.43 4.70 6.74 434.66 78.45 3.07 1.83 659.99 3.70 6.75) 10.00 71.698.91 1.440.375.244.115.05) 9.68 784.11 496.117.97 587.449. Tax) NET PROFIT Dividend Tax on Distributed Profits Retained Earnings INTERNAL RESOURCES GENERATED VALUE ADDED WHAT CORPORATION OWNS Gross Fixed Assets Depreciation Net Fixed Assets Capital Work in Progress Investments .537.626.59 81.700.85 6.26 780.309.47 18.332.709 542 150 19 83 290 116 16 159 290 1.112. 1 US$ = Rs.63 – (1.037.80 9.47 294.912.20 11.365.678.569.66 606.Performance Profile 2004-05 FINANCIAL GROSS SALES Gross Profit Depreciation Interest Tax (Incl.38 652.81 95.
9% 0.1% 8.4% Taxation Dividend Transfer to Reserves EPS-DPS Comparison 60 50 40 Rs.1% 1.4% Purchase of Products For Re-sale Duties Transhipping Expenses Employees Depreciation & Interest Other Operating Expenses 31.53rd Annual Report 2004-05 Performance Profile Contribution to Ex-chequer 8000 7000 Rs.6% 2.1% 1. 30 20 10 0 FY01 FY02 EPS FY03 DPS FY04 FY05 22 .9% 1.5% 1./Crores 6000 5000 4000 3000 2000 1000 0 FY01 FY02 Excise Duty FY03 Customs Duty FY04 Income Tax FY05 Sales Tax Distribution of Earnings 2004-2005 Raw & Packing Material 51.1% 0.
580.09:1 11.13 0.714.34 – – 134.41 – 0. for Deferred Tax Adj.85 3.82 16. Money pending allotment) Investment.70 14.481.397.33 – 790.537.165.91 (11.37 3.67 5.684 7.26 42.15 1.74 23.32 1. Sales/Employee (Rs.224.407 318 1.318.74 – 279.30 5.09 0.38 380.561 34.59 175.15 617.088 108.76 10.33 659.39 872.81 6.00 9.06 746.68 1.Performance Profile 2004-05 FUND FLOW STATEMENT Sources of Funds : Profit after Tax Depreciation LPG Deposits Borrowings (Net) Share Capital Share Premium Redemption of Oil bonds Redemption/Sale of Investment Prov.47 272.733.85 339.94 606.189.) US$ Million 290 150 40 70 – – 68 – (18) 1.42) 574.08 0.648.549 23 .87 – 0.32 0.165.714.12 44.81 95.61 4.92 307.27 6.55 6. Crores) Debt Equity Ratio MANPOWER (NOs.40 11.347.52 1.85) 1.47 4.67 1.213 110.) Cash Earnings Per Share (Rs.74 629.54 2.06 6.11 5.JVCs (Incl.37 62.99 0.65 6.50 – (0.58 1.136.27 4.814 2 143 3.03 0.12 – – 2.07 0. Crores) Avg.60 1.04 1.18 75.784.11 678.82 640.44 2004-05 2003-04 2002-03 2001-02 2000-01 Rs./Crores 1.977.12 382.96 2.85) 3. Adv.00 – (79.246.00 226.57 6.095.172.224.277.91 4.61 993.784.322.11 0.83 300.33 34.70 250.91 13.) Avg.05:1 11.76 1.72 – – 1. (Public Issue exps.12 0. Exps.33) 1.986.55 509.19:1 11.61 3.07 – 7.33 5.21 54.69 54.02 0.78 – 0.10 – 493.47 3.50 – 85.14 0.97 37.23:1 11.02:1 10.70 6.81 2.667.168.50 – 2 – – 602 1.88 – – 2.00 (0.07 2.46 – 433.01 433.68) 1.94 4.98 529. on account of sale/ deletion of Assets & Prov.43 (1.) Total CONTRIBUTION TO EXCHEQUER Excise Duty Customs Duty Sales Tax Service Tax Income Tax Total RATIOS Gross Profit/Sales (%) Net Profit/Sales (%) Earnings Per Share (Rs.088.661.27 339.357 127.200.65 941.70 0.58 699.Others Misc.99 787.903.25 177.730.38 56.37 0.92 2.00 768.139.58 172.21 – – 3.31 32.63 738.65 – 43.08 0.17 0.872.30 3.05 1.28 – 2 602 116 16 301 168 – 6.73 7.144.20 141.00 71.66 78. for diminution in Investment Total Utilisation of Funds : Dividend Tax on Distributed Profits Capital Expenditure Working capital : Increase/(Decrease) Repayment of Loans (Net) Investment .85 4.36 574.92 45.11 5.136. towards Equity & Share app.648.26 577.128.99 1. Net Profit/Employee (Rs.
624.18 659.14 448.05 90.113.30 68.208.48 606.31 93.87 714.26 5.5188.8.131.52 780.02 756.51 48.940.36 35.48 1.296.56 552.40 44.88 107.06 1.936.76 528.22 33.15 363.447.87 65.061.53rd Annual Report 2004-05 Performance Profile 2004-05 VALUE ADDITION Income: Gross Sales/Income from operations Add : Increase/(Decrease) in Inventory 14.60 52.82 712.242.39 19 132 83 81.115.304.13 1.87 104.39 48.97) 48.829 8 14.94 232.38 5.46 1.60 62.868.06 481 162 2.25 11.253.516.39 4.50 387.800.101.44 117.531.136.87 3.25 5.54 38.19 159 150 1.64 580.38 70.41 1.54 3.399 20.496.65 842.74 339.187.366./Crores Duties applicable to products: Total Value added Operations Operating & Service Costs Employees’ Benefits Providers of Capital Interest on borrowings Dividend Income Tax Re-deployment in Business Retained Profit Depreciation Total Value distributed 1.07 433.977.528.10 45.379.848.33 34.15 67.13 357.45 US$ Million 2004-05 2003-04 2002-03 2001-02 2000-01 Rs.47) 44.65 529.246.97 569.19 5.198.36 14.90 55.184 697.061.657 21 16 26 12.076.08 6.33 373.63 54.311.06 24 .38 3.511.259.429.800.49 153.85 65.27 55.504.47 4.208.456.719.34 54.061.33 434.88 55.39 40.403.56 1.14 4.184 5.59 5.62 1.20 57.912.88 28.837 Cost of Raw materials: Raw Material Consumption Purchase for resale Packages Stores & Spares Utilities 4.50 57.502.42 (367.41 79.254 1.06 6.95 546.80 29.38 44.677.76 14.101.77 114.31 24.58 6.92 874.83 30.98 (258.679 7.44 574.912.98 10.43 294.
510.873.53 2.17 18.282.34 1.766.526.890.67 55.55 1.85 334.40 2.35 1.81 342.00 5.30 54.02 1.41 7.77 76 35 90 39 10 4729 1638 1822 1.96 42.429.58 6.04 457.160.86 224.245.765.78 10.08 2.60 518.86 506.63 1.508.003.98 7.25 47.27 21.23 554.79 44.06 56.99 76 35 92 40 10 4863 1644 1898 1.23 48.18 254.95 1.50 31.920.931.843.035.01 1.13 20.37 1.948.727.61 6.840.19 259.79 108.26 5.17 1.28 30.33 24.77 8.47 2.553.97 2.64 32.18 7.80 6.17 253.60 10.24 342.85 299.17 81 36 89 40 10 5502 1647 1993 1.425.51 4.64 1.783.61 570.98 10.46 18.899.00 2.009.62 40.889.97 7.07 2.617.68 224.966.76 773.817.74 1.792.162.395.653.390.453.61 7.08 2.90 2.08 47.82 1.42 77.25 404.Performance Profile 2004-05 SALES VOLUME * Light Distillates Liquified Petroleum Gas Naphtha Motor Spirit Hexane Propylene Sub-total Middle Distillates Mineral Turpentine Oil Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel JBO/WO Light Diesel Oil Sub-total Lubes & Greases Heavy Ends Furnace Oil Low Sulphur Heavy Stock Bitumen Others Sub-total Total * Including Exports MARKETING NETWORK Regional Offices Terminals/Installatns.60 Numbers 76 32 87 37 10 4600 1631 1601 1.31 131.67 2.762.63 36.50 309.25 574.74 409.97 8.93 1.46 10.96 18.21 531.021.44 1.96 277.379.632.025.74 1.69 9./TOPs Depots LPG Bottling Plants ASFs Retail Outlets SKO/LDO Dealers LPG Distributors LPG Customers (in crores) 85 36 100 40 10 6667 1648 2153 2.579.12 2003-04 2002-03 2001-02 2000-01 000 Tonnes 25 .372.046.088.16 19.539.41 79.94 15.30 38.726.14 656.40 329.70 2.26 7.96 1.480.44 1.565.748.60 2.14 1.803.91 289.32 215.389.
30 2 1.53rd Annual Report 2004-05 Performance Profile Combined Gross Refining Margins 6 5 5.65 US$ / bbl 4 3 2.82 1.87 4.MR 5 4 3 2 1 0 FY01 mmt FY02 FY03 FY04 FY05 Imported Indigenous Production Volume .84 1 0 FY01 FY02 FY03 FY04 FY05 Crude Thruput .MR 5 4 3 2 1 0 FY01 mmt FY02 Light Distillate FY03 Middle Distillate FY04 Heavy Ends FY05 26 .
30 (3.70 – 280.40 42.90 1.20 1.80 – 11.50 44.40 36.20 1.20 6.20 744.20 5.50 263.80 1.70 1.318.30 1.465.20 36.40 491.90 1.80 5.50 192.40 39.732.20 2.20 54.Performance Profile 2004-05 PRODUCTION VOLUME .079.60 2.00 277.80 172.60 324.536.60 44.60 214.40 50.90 1.40 274.70 141.70 383.90) 402.90 154.108.00 50.30 904.20 174.571.10 1.20 6.10 1.90 – 241.40 38.10 1.30 298.20 5.60) 400.00 42.70 2.80 1.00 305.00 164.10 40.226.80 475.20 6.719.046.10 603.30 47.70 202.500.90 – 8.00 976.682.80 – 14.10 – 11.30 – 282.10 220.608.00 21.input of BH Gas) Sub-total Total Intermediate Stock Differential Fuel & Loss Total 933.70 161.00 137.317.80 253.50 5.30 379.90 – 11.70 272.80 49.60 338.575.40 5.70 2.115.50 695.60 2003-04 2002-03 2001-02 2000-01 000 Tonnes 27 .MUMBAI REFINERY Light Distillates Liquified Petroleum Gas Naphtha Motor Spirit Hexane Propylene Solvent 1425 Sub-total Middle Distillates Mineral Turpentine Oil Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel JBO/WO Light Diesel Oil Sub-total LOBS/TOBS Heavy Ends Furnace Oil Low Sulphur Heavy Stock Bitumen Others (Incl.50 2.725.708.10 1.60 946.40 259.169.631.80 5.20 585.20 1.392.70 392.30 308.70 (0.061.50 184.108.40.206 335.272.561.00 492.70 125.70 273.00 1.70 (3.427.017.00 438.30 13.50 659.70 – 287.20) 418.80 383.20 5.422.30 246.664.518.10 412.90 37.80 435.20 453.70 – 269.
VR 5 4 3 2 1 0 FY01 mmt FY02 Light Distillate FY03 Middle Distillate FY04 Heavy Ends FY05 Combined Crude Thruput 12 10 8 mmt 6 4 2 0 FY01 FY02 FY03 FY04 FY05 Imported Indigenous 28 .53rd Annual Report 2004-05 Performance Profile Crude Thruput -VR 7 6 5 mmt 4 3 2 1 0 FY01 FY02 FY03 FY04 FY05 Imported Indigenous Production Volume .
2004-05 PRODUCTION VOLUME - VISAKH REFINERY Light Distillates Liquified Petroleum Gas Naphtha Motor Spirit Hexane Propylene Solvent 1425 Sub-total Middle Distillates Mineral Turpentine Oil Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel JBO/WO Light Diesel Oil Sub-total Heavy Ends Furnace Oil Low Sulphur Heavy Stock Bitumen Others Sub-total Total Intermediate Stock Differential Fuel & Loss Total 926.45 266.50 240.09 11.68 1,444.72 7,337.58 7.01 477.59 7,822.18 848.47 384.63 288.51 11.32 1,532.93 7,145.02 (18.86) 465.32 7,591.48 623.00 388.40 220.90 11.10 1,243.40 6,385.60 58.20 407.50 6,851.30 624.60 404.10 106.70 7.00 1,142.40 6,333.60 (36.20) 408.90 6,706.30 481.80 600.30 70.00 3.30 1,155.40 5,986.10 25.50 393.70 6,405.30 – 37.90 715.32 3,226.13 5.38 89.21 4,073.94 1.71 94.94 731.81 2,729.32 7.75 110.54 3,676.07 1.10 51.70 637.30 2,742.90 7.30 113.80 3,554.10 7.60 33.00 676.00 2,784.20 8.10 50.50 3,559.40 6.30 22.20 603.30 2,589.90 7.50 28.90 3,258.10 296.81 812.59 677.37 – 32.15 – 1,818.92 323.55 845.98 734.83 – 31.66 – 1,936.02 279.40 602.70 676.30 – 29.70 – 1,588.10 293.10 601.50 715.00 – 22.20 – 1,631.80 229.40 681.50 637.20 – 24.50 – 1,572.60 2003-04 2002-03 2001-02 2000-01 000 Tonnes
53rd Annual Report 2004-05
TO THE MEMBERS On behalf of the Board of Directors, I present the Fifty third Annual Report on the working of the Company, together with the Audited Accounts for the year ended 31st March, 2005. HIGHLIGHTS FINANCIAL (Rs./Crores) Sales Turnover Profit before Depreciation, Interest and Tax Depreciation Interest Profit before Tax Provision for Current Tax Provision for Deferred Tax Provision for taxation of earlier years written back Profit after Tax Transfer from Debenture Redemption Reserve Appropriations: General Reserve Debenture Redemption Reserve Proposed Dividend : Interim Final Tax on distributed profits Balance carried forward PHYSICAL (Million Tonnes) Market Sales (incl. Exports) Crude Thruput : Mumbai Refinery Visakh Refinery SHAREHOLDER VALUE (Rupees) Earnings per Share Cash Earnings per Share Book Value per Share DIVIDEND Your Directors, after taking into account the financial results of the Company during the year, have recommended dividend of 150% for the year 2004-05 (including interim dividend of 50%)as against 220% dividend paid for the year 2003-04. The dividend for 2004-05, including dividend tax provision will absorb Rs. 580.15 crores (2003-04 : Rs. 842.46 crores). TURNOVER Your Company has achieved a sales turnover of Rs. 64,689.51 crores as compared to Rs. 56,332.57 crores in 2003-04. PROFIT Your Company has earned gross profit of Rs. 2,381.83 crores as against Rs. 3,642.66 crores in 2003-04 and profit after tax of Rs.1,277.33 crores as compared to Rs.1,903.94 crores in 2003-04. 37.69 54.81 249.04 56.18 75.67 228.47 20.09 6.12 7.82 19.53 6.11 7.59 (127.73) – (169.67) (339.33) (71.15) 669.45 (190.39) (25.00) (203.88) (542.93) (95.65) 846.09 2004-05 64,689.51 2,381.83 (659.59) (81.64) 1,640.60 (589.71) 79.33 147.11 1,277.33 100.00 2003-04 56,332.57 3,642.66 (606.58) (55.65) 2,980.43 (1022.45) (54.04) – 1,903.94 –
INTERNAL RESOURCES GENERATION The Internal Resources generated were Rs.1,277.44 crores as compared to Rs.1,722.10 crores in 2003-04. CONTRIBUTION TO EXCHEQUER Your Company has contributed a sum of Rs.16,200.61 crores to the exchequer by way of duties and taxes, as compared to Rs. 14,872.65 crores in 2003-04. DIRECTORS’ RESPONSIBILITY STATEMENT In terms of Section 217(2AA) of the Companies Act, 1956, your Directors state that : (i) In the preparation of the Annual Accounts, all the applicable Accounting Standards have been followed along with proper explanation relating to material departures.
(ii) 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, 2005 and of the Profit and Loss Account of the Company for the year ended on that date. (iii) 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 irregularities. (iv) These Accounts have been prepared on a going concern basis. MEMORANDUM OF UNDERSTANDING WITH GOVERNMENT OF INDIA The Corporation has been achieving an all round “Excellent” rating vis-à-vis MOU targets for thirteen consecutive years upto 2003-04 as a result of the concerted efforts of all the employees. The performance of the Corporation of the year 2004-05 also qualifies for “Excellent” rating basis self assessment. The details of performance vis-à-vis MOU 2004-05 targets are enclosed (Annexure I). REFINERY PERFORMANCE HPCL refineries achieved the highest ever combined crude thruput of 13.94 MMT as against previous best of 13.70 MMT achieved during 2003-04. Mumbai Refinery achieved a Crude thruput of 6.12 MMT against installed capacity of 5.5 MMT, which represents a capacity utilization of 111.20%. The Fuel and loss at Mumbai refinery was 6.57%, which is better than the MOU target of 7.20%. Visakh Refinery achieved the highest ever crude thruput of 7.82 MMT against previous best of 7.59 MMT achieved during 2003-04, which corresponds to 104.30% capacity utilization of installed capacity (7.5 MMTPA). The Fuel and loss at Visakh refinery was 6.12%, which is also better than the MOU target of 6.50%. Gross refining margins of Mumbai Refinery averaged at $ 5.60 per barrel as against $ 4.26 per barrel for the year 2003-04. Gross refining margins of Visakh Refinery averaged at $ 5.06 per barrel as against $ 4.61 per barrel for the year 2003-04. Both the refineries have initiated steps to put up new facilities to produce fuels to meet future specifications. MARKETING PERFORMANCE Your Company achieved the highest sales growth of 3.5% vis-à-vis 3.9% for the industry in the year. The market sales (including exports) registered 20.09 MMT corresponding to Rs. 64,689.51 crores during the year as against 19.53 MMT corresponding to Rs. 56,332.57 crores during 2003-04. VIGILANCE “The raison d’être of Vigilance activity is not to reduce but to enhance the level of managerial efficiency and effectiveness in the organisation”. (- CVC circular dated 13.04.04).
53rd Annual Report 2004-05
The above dictum of the Central Vigilance Commission is the principal determinant as far as functioning of the Vigilance department is concerned. Adherence to the same was ensured in the various activities undertaken by the depar tment during the year. Vigilance wing has been striving to enhance transparency levels in the Organisation, through advocating extensive use of e-governance. Tender notices and forms are made available on the website. Initiatives like e-payments, e-procurements, computerised file tracking system etc. are under various stages of implementation across the Organisation. In critical areas like dealership selection, the results are being published on the website.
A Vigilance Conference in progress
Preventive vigilance activity was stepped up through inspections, workshops and awareness programmes. Special Q & Q (Quality and Quantity) campaigns were organised during the Vigilance Awareness Week, wherein demonstrations for enhancing awareness with respect to the issues related to adulteration were given to the customers across the country. Vigilance department will continue to bolster the efforts of the Management in striving towards making this Organisation a “World Class Energy Company”, and enhancing value for all stakeholders. INDUSTRIAL RELATIONS The Industrial Relations climate during the year 2004-05 continued to be generally harmonious in the Corporation. OFFICIAL LANGUAGE IMPLEMENTATION Progressive use of Hindi in the Corporation continues to receive due importance. More details are given in the Management Discussion and Analysis Report. SC/ST LIAISON The overall representation of SC/ST employees in the Corporation is 27.85%. During the year, your Corporation has carried out a number of Welfare/Development activities. More details are given in the Management Discussion and Analysis Report. CORPORATE GOVERNANCE The Corporation has complied with the various requirements of Corporate Governance. The details in this regard form part of this Annual Report. MANAGEMENT DISCUSSION AND ANALYSIS REPORT This report has been given separately. PARTICULARS OF EMPLOYEES A statement providing the information as required under Section 217 (2A) of the Companies Act, 1956 is annexed herewith (Annexure IV). The details regarding the number of women employee’s vis-à-vis the total number of employees in each group is also annexed (Annexure V). DIRECTORS Shri B. Mohanty, Joint Advisor, MOP&NG, ceased to be Director with effect from 29.10.04 consequent to his reassignment in the Ministry of Petroleum and Natural Gas. Shri A.K. Srivastava, Jt. Secretary, MOP&NG, ceased to be Director with effect from 07.03.05 after his completion of tenure in MOP&NG. Shri Prabh Das, Joint Secretary, MOP&NG and Shri C. B. Singh, Joint Advisor, MOP&NG, were appointed as Directors with effect from 03.05.05 who have been co-opted as Additional Directors, liable to retire at the next Annual General Meeting and are eligible for re-appointment. Shri N. K. Puri, Director-Marketing of the Corporation retired on April 30, 2004 upon attaining the age of superannuation and after serving the Corporation for a period of 40 years.
The employees of the Corporation have continued to display their total commitment towards the pursuit of excellence. MOP&NG. Srinivasan. Petroleum Planning & Analysis Cell and the State Governments.S. Roy Choudhury. Mathur will superannuate effective June 01. Nandagopal continue to be part time non-official Directors of the Corporation. Srivastava.K. 1956.S. The Directors also acknowledge the contribution made by the large number of dealers and distributors spread all over the country towards improving the service to our valued customers as well as for the overall performance of the Company. B. Srinivasan. S/Shri M. Ministry of Petroleum and Natural Gas. LAL Chairman & Managing Director May 26.Tripathi.Lal. Shri Mani Shankar Aiyar. Shri D. Your Directors take this opportunity to place on record their appreciation for the valuable contribution made by the employees and look forward to their services with zeal and dedication in the years ahead to enable the Company to scale even greater heights. S/Shri T. Director (Finance) and S. continues to be ex-officio part time Director of the Corporation. Sankar. C. C&MD.L. ACKNOWLEDGEMENTS The Directors gratefully acknowledge the valuable guidance and support extended by the Government of India. seen in the picture are Shri S. Balakrishnan. Rajesh V.L. Ramulu. MOP&NG and the Functional Directors.C. Sankar. Shah and C. Ministry of Petroleum & Natural Gas & Shri M.S.B. Also. Raja G. As per the provisions of Section 256 of the Companies Act. Director (Refineries). Additional Secretary.S. C&MD handing over the Dividend cheque to the Hon'ble Minister of Petroleum & Natural Gas and Panchayati Raj. other Ministries. 33 . A. Secretary to Government of India. Director (Marketing) continue to be the whole time Directors of the Corporation. For and on behalf of the Board of Directors M. Director (Human Resources). 2005. Special Secretary. Kulkarni. Mohanty and N. Puri during their tenure on the Board. B.Directors' Report Shri M. Mathur.K. D. 2005 Shri M. who will retire by rotation at the next AGM and are eligible for reappointment.B. Ramulu will be the Directors. Your Directors are thankful to the shareholders for their faith and continued support in the endeavours of the Corporation. S/Shri T. Rajesh V. The Board of Directors place on record their sincere appreciation of the valuable services rendered by S/Shri A. Lal. Shah and M.
66 1811.) HINCOL . Nos.53rd Annual Report 2004-05 Annexure to Directors' Report ANNEXURE . Lakhs % Wt.65 11.09 1.45 4 98. Mks.13 18. Mks. of Products Launched v) Project Implementation/Modernisation Green Fuels & Emission Control Project – MR Clean Fuels & Emission Control Project – VR Terminal Automation : 35 Locations vi) Capex/Greenfield Investments/JVs Green Fuels & Emission Control Project – MR Clean Fuels & Emission Control Project – VR vii) Extent of Globalisation (International. Mks.37 4 98.00 1 1 1 7 2 2 3 80 80 19. Crores Rs. Wt.Commissioning of Blending Plants Visakh Mangalore SALPG .00 16.00 61525. Wt. Crores Rs. Mks. Mks. Wt. % Wt. Mks.21 2382. Wt. % of Outlay % of Outlay 13. Wt.22 15.00 1 1 1 7 2 6 15 19 50 Wt. Wt. 1 1 2 1 1 10 34 . Mks. Mks. & Refineries) iv) R & D Efforts : No. Mks. Wt.I MOU TARGETS VERSUS ACTUAL PERFORMANCE : 2004-05 CRITERIA COMMON PARAMETERS (A) I.87 8. foreign JVs etc. Mks. STATIC FINANCIAL PARAMETERS : a) Financial Performance Indicators : i) Gross Margin/Gross Block ii) Net Profit/Net Worth iii) Gross Profit/Capital Employed b) Financial Indicators (size) : i) Gross Margin ii) Gross Sales c) Financial Returns : i) PBDIT/Total Employment ii) Added Value/Gross Sales II.Completion of Access Shaft Sinking UNIT Target “Excellent” Level Actual Achieved % % % Rs.55 2.00 22. DYNAMIC PARAMETERS i) Quality : ISO Certification LPG Plants ii) Customer Satisfaction iii) Employee Training & Motivation : Competency Profiling Finalisation of Strategy for SBUs thru’ Shared Vision Exercise Implementation of Six Sigma (Mktg.00 64690.
Enterprise Specific and Efficiency Parameters : No. 1 1 76.50 69.20 75.Annexure to Directors' Report CRITERIA SPECIFIC PARAMETERS (B) I.20 6.57 6. Wt.12 Wt% Wt% 68.Retail II.52 23.45 25. Mks.00 72. Mtrs. Mks.00 2200 1.50 6.00 70.00 2247 EXCELLENT % % 25.37 UNIT Target “Excellent” Level Actual Achieved 35 .00 79.Retail HSD . of Process Effluents Discharged Control on Retail Outlets Addition of Retail Outlets Addition of LPG Distributorships Branding of Retail Outlets (Club HP) OVERALL RATING (A) + (B) Wt. Sector Specific : Distillate Yields : Mumbai Refinery Visakh Refinery Fuel and Loss : Mumbai Refinery Visakh Refinery Market Share : MS .00 70. % % % Nos. of Reportable Accidents in Refineries Cu.48 1 80.19 Wt% Wt% 7.22 23.39 76.
Per formance of all refinery compressors was studied in detail and survey identified 3000 Nm3/h air leaks in the compressed air system. Reduced specific steam consumption to 292 MT/TMT of crude processing during the year as compared to 305 MT/TMT crude processing in 2003-04 by periodic surveying and arresting steam leaks. Conversion of FRE and LR -VDU natural draft furnaces to balance draft furnaces for efficiency improvement by 9 %. Ceramic coating in SEU-II furnace and Hydrogen Reformer to improve the thermal efficiency by 2%. 36 . ix. Technology Absorption and Foreign Exchange Earning/ Outgo as per Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. Modified PDU steam condensate recovery system and reduced process steam consumption by 2 tons/hr. During the fortnight. display of oil conservation posters and slogan/quiz drawing competitions in various schools of Chembur area were conducted. Firing of FR vacuum column off gas (low calorific value) in heaters. Recovery of LR units’ condensate (24 T/hr) for usage in Captive Power Plant as boiler feed water. Installation of Secondary seals in 18 nos. Various Encon measures undertaken during 2004-05 are as follows : Mumbai Refinery i. ii. 2005 to generate mass awareness in public for conservation of petroleum products.II Particulars with Respect to Conservation of Energy. Optimized GTG load and reduced Specific energy consumption from 0. vii. vi. of floating roof storage tanks to reduce tank emission losses. Carried out comprehensive refinery’s compressed air survey by engaging an external agency. x. ii. iv. iii. several activities like free PUC check up for vehicles.53rd Annual Report 2004-05 Annexure to Directors' Report ANNEXURE . Replacement of FR-CDU/VDU/FRE-CDU rotary Air Pre-heater with stationery Air pre-heaters to improve the furnace efficiency by about 4%. 1988. ENERGY CONSERVATION AND TECHNOLOGY ABSORPTION 1) CONSERVATION OF ENERGY a) Energy conservation measures undertaken and additional investment/proposals for implementation on conservation of energy Mumbai and Visakh Refineries accord highest priority to energy conservation and have undertaken several Encon measures by operational improvements & implementing Encon projects.373 to 0. Identified air leaks arrested and spared one compressor operation. v.365 (Kg of fuel per unit power generation in CPP). Organized Oil Conservation Fortnight during January 15 to 31. Optimization of the FR/FRE units crude preheat exchangers network to improve the preheat temperature by 20 Deg C. viii. Visakh Refinery i.
34 crores. Efforts are on to access international Markets and to tap export potential for free trade products and lubricants. Various measures undertaken during the year 2004-05 would result in estimated energy savings of about 32221 SRFT.Annexure to Directors' Report iii. ADAPTATION AND INNOVATION a) Efforts made towards technology absorption. adoption & innovation Information with respect to above is given below in Form-B b) Imported Technology (Imported during last 5 years) : Technology Imported Flexi cracking of Vacuum Gas Oils (FCCU) at MR Flexi cracking of Vacuum Gas Oils (FCCU) at VR Merox Treatment Facilities at VR Bitumen Blowing at VR Diesel Hydro De-sulfurisation at both MR and VR Hydrogen Units at both MR and VR Sulfur Recovery Units at both MR and VR Diesel Hydro De-sulfurisation 2nd Reactor at MR 3) FOREIGN EXCHANGE EARNING AND OUTGO a) Activities relating to exports : Various initiatives has been taken to increase exports and for development of new Exports markets for products and services. Steam leaks Joint survey was carried out by CHT nominated team during the Oil Conservation fortnight in January 2005. b) Impact of above measures on energy conservation and consequent impact on cost of production of goods. which is equivalent to Rs. c) Total energy consumption and energy consumption per unit of production : Please refer Form-A of the Annexure to the Directors’ Report. 2) TECHNOLOGY ABSORPTION. I & J. H. Year of Import 1999 2000 2000 2000 2000 2000 2000 2004 Whether fully If not absorbed absorbed Reasons Yes Yes Yes Yes Yes Yes Yes Yes – – – – – – – – 37 . 10 G. Note. b) Total Foreign Exchange used and earned : Please refer Notes to Accounts – Schedule 20 B.
00 41.00 9.00 47. Crores) Average rate (Rs.29 16.00 25.53rd Annual Report 2004-05 Annexure to Directors' Report FORM .35 12.08 9. BH Gas Quantity (TMT) Total amount (Rs. Crores) Rate Per Unit for energy charges (Rs./Ton) (B) Consumption per Unit of Production Electricity (KWH/Ton of crude) Liquid Fuel (Tons/TMT of crude) Gas Fuel (Tons/TMT of crude) Coke Fuel (Tons/TMT of crude) 2004-05 10. LPG Quantity (TMT) Total amount (Rs. Crores) Average rate (Rs./Ton) 3.88 10062.20 49.00 28./KWH) Maximum Demand Charges (Rs.90 8.20 7.61 9.00 131. Refinery Gas Quantity (TMT) Total amount (Rs.81 4275. Coke Quantity (TMT) Total amount (Rs.00 49.81 42.00 126.88 9555./Ton) 6.67 24.20 38 .00 10.70 28.28 2003-04 7.82 152.09 25.69 13707.36 3.20 4.30 15848.51 9.02 5.46 45.37 153.31 10062.61 4. Crores) Average rate (Rs. Crores) Average rate (Rs.87 17196.30 4.06 10062.58 2.95 4.22 9555.00 27.47 12.00 6.99 4.89 2636.54 18777. Crores) (b) Own Generation Through Steam Turbine/Generator Units (Million KWH) Units per tonne of fuel Cost per unit (Rs. Crores) Average rate (Rs.00 5.A FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY MUMBAI REFINERY (A) Power and Fuel Consumption 1. (a) Electricity Purchased Units (Million KWH) Total Amount (Rs.73 161.35 4455.63 279. Furnace oil/LSHS Quantity (TMT) Total amount (Rs.69 293.53 9555./Ton) 4.33 168./Ton) 5. Naphtha Quantity (TMT) Total amount (Rs.70 217.16 2624.82 180./KWH) 2./Ton) 7. Crores) Average rate (Rs.
12 146.40 39 ./Ton) (B) Consumption per unit of production : Electricity (KWH/Ton of Crude) Liquid fuel (Tons/TMT of Crude) Gas fuel (Tons/TMT of Crude) Coke Fuel (Tons/TMT of Crude) 2004-05 3.47 4.88 107.21 2.34 2003-04 1.15 5.41 10./Ton) 6.54 85./Ton) 3.43 252.08 32. Crores) Rate Per Unit for Energy charges(Rs/KWH) Electricity Exported (Million KWH) Maximum Demand charges (Rs./Ton) 4.66 15.26 140./Ton) 5. Crores) Average rate (Rs.79 9685.02 9651. (a) Electricity purchased Units (Million KWH) Total amount (Rs. Crores) Average rate (Rs.87 14.43 246. Furnace Oil/LSHS Quantity (TMT) Total amount (Rs.35 21.28 74.36 68.38 4. Crores) Average rate (Rs.81 19474.26 10438.60 199. Refinery Gas Quantity (TMT) Total amount (Rs.54 10456.67 34. CPP Fuel Quantity (TMT) Total amount (Rs.42 0.68 30.04 11. Crores) (b) Own Generation (CPP) Units (Million KWH) Units Per Ton of Fuel Cost Per Unit (Rs.63 89.17 0.90 3. Naphtha (DHDS) Quantity (TMT) Total amount (Rs.22 19356.42 2460.17 102.79 71.Annexure to Directors' Report VISAKH REFINERY (A) Power and Fuel Consumption 1.46 51.57 10460.99 141.32 9668.79 100.41 30.25 110.01 2.51 83. Crores) Average rate (Rs.11 32.00 14012.73 9. Coke Quantity (TMT) Total amount (Rs.60 66.62 2441.95 9. Crores) Average rate (Rs.05 26.43 86.09 13970./KWH) 2.
PFDs & P&IDs has been finalized in consultation with M/s EIL to implement the facilities. The same is expected to be implemented by 2006. 40 . During 2004-05. Rs. Optimization studies of Hexane manufacturing unit and feasibility study for producing polymer-grade hexane (with IIP) Study has been initiated along with IIP during 2004-05 for optimizing the existing Hexane plant operating conditions to explore the possibility to produce WHO and Polymer grade Hexane. 75-80% and same was routed to FCC unit as feed stock. IIT Kanpur and Advanced Refining Technologies for various R&D activities. During the year 2002-03 and 2003-04. Improvement of Propylene Purity (with IICT Hyderabad) Proposal has been signed with IICT Hyderabad to improve the purity of Propylene through membrane separation. The samples of side streams and residue were analysed by IIP. 3 crores/ annum. The raffinate so obtained would be superior quality FCCU feed stock and would result in better yields of Light and Middle distillates. sulfur and saturates in products is also expected by increasing severity of hydrofining and thru usage of suitable catalyst. which resulted in raffinate yield of approx. test runs were conducted in MR-PDA unit and relevant samples were analyzed by IIP. a successful plant run was undertaken in Solvent Extraction Unit of Mumbai Refinery during February 2004. Improvement in colour. EIL & CPCL) The project aims at extraction of aromatics from the FCCU feed using NMP as solvent. Energy efficient Deasphalting process using supercritical solvent recovery (with IIP. b. f. e. which have more stringent quality specification with respect to sulfur and benzene content. Up-gradation of FCCU recycle oil through solvent extraction using NMP as solvent (with IIP. Subsequently. 2 Crores/annum. physico-chemical characterization and analysis of Test Run samples was done by IIP and mass transfer studies on Glass Packed Extraction Column has been completed. EIL & CHT) In the energy efficient super-critical approach the solvent recovery in the unit is done under supercritical process conditions. d. c. Site selection. The project was initiated during 2002-03 and is scheduled to be completed by 2006. During the year.53rd Annual Report 2004-05 Annexure to Directors' Report FORM B FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION 1. COLLABORATIVE R&D PROJECTS MoU have been finalized with Research collaborators for the following projects : a. Optimization studies of NMP Lube Extraction Unit (with IIP) Study has been initiated along with IIP during 2004-05 to optimize operating parameters to obtain specific product quality and thruput maximization. RESEARCH AND DEVELOPMENT (R & D) A. resulting in an over all energy savings of about 20 to 40 percent (mainly in utilities) and lower solvent losses. The benefit expected is approximately Rs. The benefit expected from this project is approx. test runs were conducted for low Sulphur feed stock in MR-FCCU and high Sulphur feed stock at CPCL-FCCU. MOU has been signed between Chevron.
• Processing of oily Sludge from Sludge Lagoons : Global Tender floated and order has been placed on M/S. of India. 41 . • Vermicomposting of canteen waste : Aerobic Vermi Bacterial (AVB) system based composting activity for treating canteen waste is under continuous operation.28 crores 2. Altered CDU-II process parameters suitably to maximize ATF pool by blending BH ATF to PG ATF.0. Govt. • Insitu Chemical Cleaning of Crude Tank bottom sludge : Crude tank 01B insitu chemical cleaning carried out and oil recovery from sludge is in progress.1. UPGRADATION INITIATIVES Mumbai Refinery • • Commissioned DHDS second reactor and commenced EURO-III grade HSD supply in line with Auto Fuel policy during the year. Balmer Lawrie. Both the Refineries have been certified as ISO 14001. The equipment installation is in progress. Carried out 48 crudes evaluation with assay TBP and refinery laboratory TBP Distillation. Solid Waste Management : • Bioremediation of low oily sludge : Refinery is remediating biologically ETP sludge generated.III Environmental Protection Measures Mumbai and Visakh Refineries have been meeting the statutory regulations and standards set by State Pollution Control Boards and Ministry of Environment and Forest. It has improved ATF production substantially. Refinery also has planned to further augment ATF treating facilities during 2005-06 through minor modifications in ATF network. Commissioned LPG merox caustic regeneration facility to reduce chemical consumption and to improve product quality. • Integrated Hazardous Solid Waste Management Plan Project : Restructuring of the agreement is in progress for continuing the Phase III. • Treatment Storage and Disposal Facility (TSDF) : Proposal for Refinery Hazardous solid Waste disposal to TSDF at Hyderabad is under process of approval. IV and V of the project.47 crores Revenue Expenditure : Rs. ANNEXURE . Increased DHDS operation severity to meet BS-II & EURO-III HSD demand. EXPENDITURE ON R & D Capital Expenditure : Rs. Visakh Refinery • • • • • Carried out Gasoline Sulphur Reduction Additives evaluation and usage commenced to reduce CRN Sulphur content to meet BS-II & Euro-III MS demand . Visakh Refinery 1. • Ground water monitoring network development study draft report received from EIL. Commenced 380 cst Viscosity Furnace oil production for export.Annexure to Directors' Report B.
• 3 Nos. HC. Other Activities : Gasoline Sulphur Reduction Additives evaluation was carried out at IOC. Rainfall. AIR Pollution Control : • Sulphur Dioxide emission guidelines are being followed for monitoring and achieving the sulphur dioxide emissions norm on day to day basis. This has resulted in minimisation of Catalyst cost and reduction in Hazardous Solid wastes generation. Final report is awaited. • Feasibility Study and process design of dedicated collection and reprocessing system for Sour water streams : Study initiated in December 2004. • VR is implementing Process Safety Management system conforming to Occupational Safety and Health Administration’s Process Safety Management (OSHA PSM) and Environmental Protection Agency’s Risk Management Program (EPA RMP) guidelines of USA. Initiative has been taken for upgradation to 2004 edition of the ISO 14001 standard. Technical Bid evaluation is completed and project implementation is planned as part of NPCB 2005-06. • Volatile organic compounds inventorisation study taken up with M/S. • A batch of 18 officers of VR were trained by EIL for conducting Risk Analysis studies and Hazard and operability studies.II and Euro III MS. Liquid Effluent Management : • Oil Ingress Study by M/S.53rd Annual Report 2004-05 Annexure to Directors' Report 2.III HSD production ex-existing DHDS. Faridabad and usage of same commenced from December 2004 to achieve reduction in CRN Sulphur to meet demand of BS . • Feasibility study for Zero discharge study : Phase I/II of the study completed and Draft report received from EIL. Wind Velocity and Direction. • Necessary changes in DHDS operation severity made to achieve BS . EIL : Tender floated for carrying out hardware modifications for the inlets of existing ETPs as per recommendations of the study. NOX. RSPM and Noise level. SPM. Surveillance Audit was conducted and ISO 14001 certification received in 2002 is being maintained. • T&I of SRU-1 was taken up and Hardware modifications were carried out in SRU-1 for further improvement in the unit performance. 3. 4. Weather Monitoring station indicates Humidity. EIL assistance. Environment Management System : • Visakh Refinery has a comprehensive Environment Management System (EMS) and is a ISO 14001 certified Refinery. Equipment procurement proposed in NPCB 2005-06. New Continuous Ambient Air Monitoring Stations ( CAAMS ) along with a Weather monitoring station were installed and commissioned successfully. • FCCU-IR E-Cat addition was carried out in FCCU-II. Expected to be completed by June 2005. 42 . CO. Data collection is in progress.II and Euro . ( HAZOP ) 5. Consultant has been appointed. This has enhanced Refinery capability for continuous monitoring of Air Quality for SO2.
SGS has conducted a refresher training program on ISO-14001 as a part of Environmental Management System (EMS).) of sludge during the year 2004-05 by M/s. Lube Hydrifiners & SRU and other wastes have been disposed off and complied with the statutory requirement. DHDS.Annexure to Directors' Report Mumbai Refinery 1. Mumbai Refinery has processed 11. 11. In a major thrust to the solid waste management. The present Ambient Air Analyzers (SO2. Terra Consultant India Pvt. Presently.A. Mumbai Waste Management Ltd. Order has been placed on M/s. A Feasibility study has been carried out by M/s EIL for replacing the existing ETP-I & ETP-II with new Integrated ETP by adopting Cyclic Activated Sludge treatment followed by Membrane Bio-Reactor for meeting the proposed CPCB standards on MINAS. Mid Content. Ltd. Mumbai Refinery has taken initiative for treating the tank sludge in an environmental friendly manner without removal of the sludge from tank and with reduced tank down time. Chembur. SPM & CO) which have become obsolete are being replaced with new ones. Refinery has a comprehensive Environment Management System (EMS) & ISO 14001 certification and has been renewed by external Surveillance Auditor M/s. 6. As of now most of the land fills have been treated. SGS during July 2004. The complete cleaning of the tank is expected to be completed by June 2005 for facilitating the maintenance repair jobs. The project is being implemented at a cost of Rs. 9. Inline with the Solid Hazardous Waste Management Rules. routing of the system was checked and drawings were updated accordingly. RCF for locating Ambient air Monitoring Station in RCF’s residential colony premises. Ltd. NOx. M/s. 5. and the same is expected to be completed by July 2005. Refinery has entered into an agreement with M/s. 2003 and Honorable Supreme Court directive.450 M3 (approx. Environmental S. The left over sludge cake of 2000 M3 (having oil content less than 10%) is being treated by Bio-Remediation method by M/s. Various sewer streams of under ground sewer system were flushed to facilitate free flow of oily water. EIL has conducted a training program on Hazards and Operability (HAZOP) for Refinery Engineers and M/s. Action initiated for improving the underground sewer system based on the recommendations of in-house survey carried out last year for better monitoring and control/operation of ETP-II/API Separators. Flue Gas Desulfurisation Unit (Wet Gas Scrubber) is being put up in FCCU Unit for reducing the SO2 emission and Particulate Matter. Procurement of Analyzers is being taken up. Singapore using mechanical separation method and recovered about 5670 M3 of oil in the sludge. As a part of Green Fuels and Emission Control Project. 50 crores. 3. 4. and disposed off about 226 Mts of various hazardous wastes such as spent catalyst from FCCU. 2. In this direction. repairs/correction of the junction boxes as per OISD standards are in progress. 10. France and the same are expected to be received shortly. 8. 7. using BLABO technology has been started in Crude Tank-115 during March 2005 for recovering the potential oil from the sludge. 43 . Mumbai Refinery has become a member of M/s. Balmer Lawrie & Co. in-situ cleaning by M/s.
214.039.026 3. 1975 and forming part of the Directors’ Report for the period 1st April. S.049. ACA SSC SSC BA BSC ENGG (MECH) BA SSC/SSLC SSC SSC M.901.884.716 1. SR ADMIN ASST.426 290.874.914 1.939 2.380 2. DY MANAGER OPERATIONS SR OPNS OFFICER DY MANAGER FIN IT ASSISTANT SR MOBILE OPT(SG) SR MGR SECURITY SR PLANT OPERATOR CH ADMINISTRATIVE ASST DY MANAGER EX OPNS OFFICER SR MOBILE ASST.177. ISHWARLAL & CO.370 2.164 3.012 2. V.273 2. DISTILLERS TRADING CORPN LTD.954.752 1. read with Companies (Particulars of Employment) Rules.IV Information as per Section 217(2A).321 471.512 2. B.811.851 3.53rd Annual Report 2004-05 Annexure to Directors' Report ANNEXURE .092.121. PG (PM & IR) Experience (Years) 6 35 33 14 15 35 35 31 15 37 32 30 34 33 30 24 23 15 29 31 28 22 16 33 30 31 40 15 33 27 23 22 20 6 41 31 24 20 29 33 21 33 25 36 30 19 28 33 30 32 20 26 31 15 33 21 27 28 23 20 23 31 19 15 26 24 30 21 Date of Joining 7 1-Dec-69 4-Nov-71 4-Jan-91 5-Jul-89 26-Dec-69 24-Nov-69 17-Oct-73 5-Jul-89 9-Feb-68 19-May-72 1-Feb-75 13-Jul-70 15-Nov-71 1-Feb-75 24-Jun-80 24-Aug-81 21-Jan-90 1-Dec-75 24-Dec-73 1-Apr-76 17-May-82 9-Jan-89 22-Jan-72 1-Feb-75 17-Sep-73 23-Sep-64 20-Oct-89 11-Oct-71 1-Jul-77 10-Nov-81 1-Sep-82 8-Oct-84 17-Aug-98 23-Jan-64 1-Oct-73 24-Oct-80 8-Oct-84 24-Mar-76 1-May-71 5-Oct-83 15-Dec-71 9-Oct-79 26-Aug-68 1-Oct-74 3-Oct-85 5-Jul-76 4-Nov-71 1-Oct-74 1-Nov-72 5-Nov-84 3-Aug-78 17-Sep-73 2-Jan-90 6-Sep-71 16-Jan-84 1-Mar-78 1-Jul-76 9-Mar-82 8-Oct-84 7-Aug-81 1-Aug-73 12-Jun-85 2-Jan-90 20-Dec-78 12-Mar-81 1-Oct-74 7-Feb-84 Age Last Employment 2 ADVANI R I AHIRE RAMESH N ALPANA VIDYADHAR DESHPANDE ANANDA PADMANABAN A APTE K V ARORA SURINDARPRAKASH J B K SAWANT B R S NARAYANA RAO BABU RAO S BADLANI L N BALAN T K BALASUBRAMANIAN V BENWAL M C BHATIA R G BINAWADE M J BISWAS JANAKI B CHANDRA SEKHAR K V CHITNIS P V CHODANKAR H D DALAL V R DEORI MAHESWAR DHAMODARAN J DSOUZA CHARLES L DSOUZA H B DUBEY R R DUTTA SUBHASH CH DVS RAVIKUMAR FERNANDES JOSEPH V GHODKE B S GOPALAN SAKULAN GOYAL RAM KUMAR GUNSEKARAN V GUPTA ALOK GUPTA M L HAROLD BORGES HORO LUCY ISAAC JACOB V JOSEPH G JOSHI SUBHASH EKNATH JOSHUA K V JYALA MANOHARSINGH S KADOLKAR M D KEDARE SHANTARAM C KELSHIKAR S H KOHLI RAKESH KOLI R M KOTIAN HARISHCHANDRA C KOTIAN P C KRISHANKUMAR KRISHNAMURTHY V KRISHNAN R KULKARNI R B KUMAR ALOK M K HAYATKHAN MAHADEV GUMMA MALEKJEE N T MHATRE U N MICHAEL M MOHINDER SINGH AULAKH S R WAGH N S BALA NARENDRANATH S NARESH KUMAR PATEL NAVAROJI N NAYAK SHUBHADA K NUNES P T PADHI BALAKRISHNA 8 56 54 39 41 56 60 55 41 55 56 56 57 53 56 45 36 50 52 53 43 40 56 58 54 60 38 54 55 49 45 44 29 60 54 48 44 55 56 60 54 53 60 50 41 55 52 56 56 44 56 55 38 52 48 49 57 51 43 45 60 43 38 58 50 51 51 9 KOMAL MANUFATURING CO. LTD.158.948 2. ACA BSC. MBA LIC MECH ENGG BE ELEC BCOM SSC SSC BA BE CIVIL BCOM DME DIP IN IND/ FAC MGT(C) BSC NON SSC B TECH MECH SSC BSC DIP IN ELCT & TELE COMM B. MANAGER AUDIT MAINT.856. MGR SALES-MIS PQS SR.815.771 3.229 2.024.212 2.455 2.057 308.224 2.974.E (MET) BE (MECH).156 1. KOSAN GAS CO.083.566. JANAKI BROTHERS INDUSTRIAL & AGRI.175 2.955 1. 44 .423.475 1.467.137 1.362.460 3.599 3.212. Sr. CHIDAMBARAN MULRAJ & CO. WATER & WASTE WATER AUTHORITY M/S.106. LTD.818 3. M PHIL SSC SSC BE (MECH).972.881 2. GOETZE (INDIA) LIMITED M/S. MASTER IN INTL BUSS BA NON SSC NON SSC MSC BE (INSTRU) DME HSC/INTER/PUC M SC SSC BE (MECH) ME(IE) BCOM BSC MA BE (MECH) BA. M/S.002 2. SAVITA CHEMICALS PVT. LTD.D. BHARAT HEAVY ELECTRICALS LTD. ASHOK LEYLAND LTD.516 1. ENGINEERING CO. STEEL ROLLING MILL SHRI DNYANESHWAR SAHAKARI KHANDSARI UTPADAK SANSTHA LTD. LTD.813. ASST.872 2.195.751 2. WORLI DAIRY BEST & CROMPTON ENG LTD. MGR PIPELINE OPERAT CHIEF ADMIN.150.927 750.699 1.825 2.966. CHIEF RG-MGR SR REGIONAL MANAGER MGR RETAIL SR ACCOUNTS OFFICER CHIEF ADMIN.245 2.044. LLB NON SSC BA BE (MECH) HSC/INTER/ PUC. DREDGING CORPORATION LTD. ASST.120.837 1.927 2. G. CHIEF ADMIN.567 2.900.286.179 1.425 2.516 1.886 3. MANAGER INSTALLATION DY MGR ENGG & PROJECTS DY MGR FIN S.052. UNPAID BLACKSMITH APPRENTICE GREAVES COTTON & CO. ASST.800. SR MOBILE OPT(SG) DEPOT MANAGER DY MANAGER DGM LPG PROJECTS SR TECH OPT(SG) EX SALES OFFICER RETAIL SR PLANT OPERATOR(SG) SR MGR ERP DY MGR ACCOUNTS MGR QUALITY CONTROL CHIEF MANAGER HR MANAGER SH & E DY MGR FIN SR MOBILE ASST (SG) DY MGR CORPORATE MGR INSPECTION DY MANAGER OM & S CHIEF ADMIN. BOMBAY TEXTILE RESARCH ASSN. 2005. STERLING STEELS & WIRES LTD.938.481 544. ASST.377. ACA BE (MECH) BSC BA BCOM.048.064 3.004.433 3. TECH. ACA MATRIC NTC (BLACKSMITH) SSC BE (ELCT & ELC & TELE COMM) MBSc DBM. HYDERABAD ALLWYN LTD. THE MEHSANA DIST CO-OP MIL PRODN. MGR FINANCE CH MGR LPG EX OPRNS OFFICER EXE OPS OFFICER SR. ASST. MOBILE OPT(SG) DY.688.326.050 3.702 513.395 494. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Name Designation/ Nature of Duties 3 SR.646 2.092. MMS NON SSC DME DEE BSC ENGG (CHEM).795 2.102 3.458. MGR FINANCE DY.533.253 1.826.990. LTD.486 2. BOMBAY FOOTWEAR PVT.202 2.707.398.016.037.488 658.SC. SR PLANT OPERATOR(SG) PRINCIPAL MDI NIGDI Remuneration Qualifications (Rupees) 4 5 3. ASST.015.820. M.891.126 1. CH MANAGER CS & P SR MGR DEALER MGMT BOILER ATTENDANT (SG) MANAGER ADMINISTRATION SR RO MANAGER MGR-LPG DY MGR VIGILANCE DY MGR SR PLANT OPERATOR(SG) JR ADMIN.773 1. THE TATA IRON & STEEL CO.839 1.516.290 2.601 2.418. MMM B COM. LTD.345 BSC NON SSC BCOM.054. CHIEF ADMIN.537 2.252. 2004 To 31st March. No. LTD.291.215 2.987.078. BA BA SSC/SSLC BSC. LTD.658 2. M SUBRAMANYAM CHEMO PHARMA LABS LTD. SR PLANT OPERATOR DY MANAGER-PROJECTS SR PLANT OPERATOR SR MANAGER-VREP OPNS.
S.914.COM 28 BA 23 BA.352.DS LUBES PHARM. ESSO CAR CARE CENTRE INDUSTRIAL ENTERPRISES ASIAN PAINTS DIRECTOR C. LTD. ANIK AIR INDIA LTD KAMLAKAR ELECTRIC WORKS STANDARD REFINING COMPANY F.066.926 1.C.833.559.095.471 SSC/SSLC 33 2.824 1.228. K S AIYER & CO.802 SENIOR MANAGER 2. M/S STANDARD BATTERIES LTD.079 DGM-OPNS (LR) 2.927. KONKAN MINERALS RADIO INDUSTRIES 116 SHENOY U U 117 WAGLE SUBHASH BHALCHANDRA 118 MHATRE DINESH DHARMAJI 119 BUDDHISAGAR A D 120 BHIDE VILAS BALKRISHNA 121 KHEDKAR VIJAYKUMAR VISHVANATH 122 KANEKAR VIKAS SHRIKANT 123 MANKAR D M 124 AMRE MADHUSUDAN DOULATRAO 125 CHAUGULE GAJANAN KASHINATH 126 KARDILE SHIVAJI DHARMAJI 127 WADEKAR DIVYAKANT DATTATRYA 128 PATANKAR V D 129 SUNDARAM R 130 PAI V G 131 MATHURE M P 132 MINOCHER BEJAN 133 KUBAL Y S 134 PANCHAL JITENDRA HARKISHAN MANAGER . LLB.657 3. LTD.308 2.034.249.902.929. POLYOLEFINS INDUSTRIES LTD.291 SSC/SSLC.034 SSC/SSLC 2.708 2. (M/EDUCATION) SHIRISKAR A S MGR INSTLLN SHRIVASTAVA A K EX SALES OFFICER SINGH B P MANAGER-TECH SINGH PRABHAT KR EXEC OPRNS OFFICER SINGH RAM DY MANAGER SINGH SUMER EXEC OPRNS OFFICER SISAUDIA SANJEEV SR REG MGR SRINIVASARAO K DY MANAGER-TECH SRIRAM S DY MGR SUHAS KATE MGR-F&S SULE DILIP VINAYAK MGR INSTALLATION TOMY VARGHESE SR REG MGR TULASIRAO I S SR SUPDT QC VASUDEVAN V MGR SHARES VIDYA SAGAR Y EXEC OPRNS OFFICER VIJAYAKUMAR P EX OPRNS OFFICER VIJAYAN T V DY MGR INSTALLATION VIJAYARAM K MGR LPG SALES VINAYAKARAO P MANAGER-SHIFT CO-ORD VINOD B S DY MGR I&G WAGLE M H MGR FINANCE AND ACOUNT WORLIKAR BHARATI S CHIEF ADMIN ASST MAINKAR PURNIMA PRASHANT MANAGER ADMN PATIL BHASKAR SOMAJI PATHROSE A G M SHANMUGAM DIVEKAR B V REGE SATISH VINAYAK WESTERN RAILWAY UDC OF CENTRAL EXCISE INDIAN COTTON MILLS FEDERATION CHETTINAD CEMENT CORPN.DMM 33 1.880.G’AGE/SCRAP DIS 2.175 2.076 949.040 2.979 2.I.805 DME 2. DPM 26 BCOM. CAMA & CO. POLYOLEFINS INDUSTRIES LTD.112 2.468 BSC.599 890. M/S.DIP IN ORM 36 BSC 34 34 34 33 33 33 33 33 EASTERN PETROLEUM PVT.170 1.074 3.117 SSC/SSLC.032.093.263 2.228. MARVLI SAURSHTRA ENGG.131.930. NATIONAL PEROXIDE LTD. L L B 20 NON SSC 21 BSC 30 BA 27 MA.576.405.015.TECH (MECH) 26 BCOM.243 DME 3.313.068 ITI/NCTVT MACHINIST 2.234.895 HSC/INTER/PUC 3. WOCK HARDT PHARMACEUTICAL FOOD CORPOATION OF INDIA LOVELOCK & LEVIS HINDUSTAN STEEL CORPN. M/S.510 5 Experience (Years) 6 Date of Joining 7 30-Aug-78 18-Mar-85 3-Oct-83 9-Dec-74 1-Feb-78 6-Dec-78 7-Dec-98 1-Feb-75 3-Feb-64 31-Oct-75 11-Jun-73 9-Jan-89 13-Feb-89 7-Apr-80 11-Dec-75 10-Oct-85 24-Mar-87 12-Nov-75 25-Aug-75 18-Nov-68 16-Oct-80 1-May-79 13-Mar-89 5-Nov-84 21-Apr-83 19-Oct-78 12-Nov-82 20-Oct-89 17-Jul-85 19-Nov-85 10-May-69 1-Sep-82 17-Jul-80 14-Jul-69 20-Jan-86 1-Sep-82 23-Apr-72 29-Jun-82 1-Jun-63 16-Jan-84 20-Sep-76 20-Nov-81 5-Jan-79 11-Aug-82 28-Feb-86 28-Dec-87 14-Oct-68 6-Jan-71 6-Jan-71 6-Jan-71 3-Jun-72 3-Jun-72 3-Jun-72 3-Jun-72 3-Jun-72 3-Jun-72 3-Jun-72 16-Aug-72 18-Dec-72 15-Dec-72 9-Nov-74 11-May-75 11-May-75 17-Nov-75 17-Nov-75 27-Jan-76 7-Jan-77 Age Last Employment 8 56 43 60 57 51 54 30 57 60 55 55 38 39 50 54 43 41 55 52 58 52 57 39 45 56 55 45 37 42 49 57 45 52 58 44 45 55 48 60 45 50 50 51 51 59 40 60 59 58 59 57 55 54 53 56 56 59 59 59 55 54 57 54 57 53 53 53 9 BSC. RLY) BHARAT BIJLEE FRAMROZE.891 2.312 2..004.020 SSC/SSLC.D.SAFETY&INSP DIRECTOR MARKETING DGM . ACA 6 LEE 30 DME 41 BTECH (CHEM) 29 SSC.PG (PM&IR) 19 BE (MECHANICAL) 17 BSC.054.248.395.198 2.733.167 764.220. BL.DIP IN HOTEL 26 MGMT & CATERIN BE (MEHANICAL) 22 BSC.471.296 2.454 2. BELL PHARMA NATIONAL RAYON CORP. 1 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Name Designation/ Nature of Duties 2 PADMANABHA S PANDHARE S L PANDIT AMAL K PANIKAR V P PAWAR W S P K DAMODARAN PRADHAN MANOJKUMAR SADA PUNEGAR J Y PURI N K RAMNATH K RAMNATH R RANI DASARI USHA RANJIT KUMAR DASH RATHOD J T S CHANDEKAR SAHA SUSAN PAUL SAILESH COUSIK SAWILANI B V SEBASTIAN ARUN SHAH V M 3 CHIEF INSTALATION MGR SR ACCOUNTS OFFICER SR MAINT TECH EXEC CUSTOMER CELL OFF MANAGER MANAGER HR SR ACCOUNTS OFFICER DGM .770 2.935.ITI 3.963.384 3./COMPOUNDER EX SALES OFFICER DY MGR FIRE & SAFETY CHIEF ADMIN ASST MANAGER FINANCE EXECUTIVE SALES OFFICR CHIEF MANAGER CHIEF PROJECTCOORD MGR EX SALES OFFICER CH MANAGER . LUBE INDIA LTD.351 BSC 2.ADMIN Remuneration Qualifications (Rupees) 4 3. MADRAS M/S SHRI VENKAT RAGHAVA RICE CO.ITI 3.441.MINOR PROJECTS 2. MBA (FIN) 16 BSC.SC 35 BSC 22 BSC 24 B.006.412 T&D & PLANNING CH MGR-PRODN 2.018.ITI/ NCTVT MACHINIST 3.PROJECTS SENIOR ENGINEER MAINTENANCE MGR-ROTARY SR ENGR-MNTC DEPUTY MANAGER MAINTENANCE DY MGR-MNTC (ONSITE) DY MGR-PRODN DY MGR-PURCHASE MANAGER .ITI/ 33 NCTVT-ELECTRICAL 1. BHAYANDER (W.985 DGM-HR (MR) 2.Annexure to Directors' Report Sr. LTD.958 2.440 BSC 3. KARADI SKOL BREVERIES LTD.049 BSC DY MGR-PRODN 2.783 3.296 2. CARBIDE CHEMICALS CO. PLASTIPEEL CHEM & PLASTICS PVT.COM 35 B TECH (CHEM) 19 BSC 22 BCOM 32 MA 22 SSC/SSLC 41 B TECH (ELECT) 21 B.108.184.534.089 237. PVT.242.846 2. M.604 3.238. LTD. TROMBAY UNIT.019 345.079.751 748.970.335 2.477 SSC/SSLC.200 1.043. RALLIES INDIA LTD.334 2.911.H.929. POLY OLEPHINS INDUSTRIS LTD. CALICO CHEMICALS LUBRI CHEMICAL INDUSTRIES RAI.227.025.CANTEEN SENIOR ENGINEER MAINTENANCE MGR-PRODN CHIEF ACCOUNTS ASST DY MGR-OM&S 2.561 BSC 2. NATIONAL ORGANIC CHEMICAL INDUSTRIES LTD.651.216.945.981 2.898 B.527 2.035. UNICORN INDUSTRIES M/S.082 3.MATERIALS SR MGR-W/SHOP CHIEF MAINT TECHNICIAN SR MGR-LR UNITS DY MANAGER .086 2.951. No.647 3.360.279.415.022 BSC MANAGER .259.B.869.109 MGR .E. DBM 22 B TECH CHEM 15 BE (CHEM) 19 BSC 19 B.350.675 2.SC.280 2.868. M. NATIONAL ORGANIC CHEMICAL LTD.. DIP IN PHARM 31 B COM.CERT PROGRAMME (COMP APPLN) 32 32 31 29 29 29 29 29 28 45 .919 SSC/SSLC. TATA VIDYUT KARAYALAYA NEW EVEREST ENGG WORKS HOTEL CENTAUR M.411.513 1.251.. LTD.COM 3.433 BSC. ACA 18 BE (MECH) 29 MA 29 DME 36 BSC 24 MA 25 B TECH (CHEM) 17 BSC ENGG (MECH 20 MA 21 BA 26 BSC. BE (FIRE) 16 BSC 24 BSC 29 BTECH (CHEM) 19 BCOM. M/S.ITI/ NCTVT MACHINIST 3.372 3.
863 BSC 37 2. BHAT P S MANAGER MATERIALS CHAUDHARY V R DY MANAGER FINANCE CHOUDHARI H R DY MANAGER PRODUCTION CHOUGULE P A LPG OPERATOR(SG) DSA DINA CHIEF ACCOUNTS ASST.449 BSC 2.C.566.V Statement showing Women Employees as on March 31. CHIEF DRAFTSMAN 2.15 6.964.214 SSC/SSLC 2.902 BSC 2. 23 BOILER PROFICIENCY 2.122. M.60 4.785 BE (MECHANICAL) SENIOR MANAGER NEW PROJECTS DEPUTY MANAGER MAINTENANCE CHIEF DRAFTSMAN 3. LUBE REFINERY MR.C. HINDUSTAN ORGANIC CHEMICALS LTD.DME 23 2. S. PATIL SURGONDA MALGOND SR.per month.582. 4.P.1. LUBE REFINERY SWASTIK H & J P LTD.039.262.264.UTILITIES SENIOR MANAGER SHIFT CO-ORDINATOR FORKLIFT OPTR/DRIVER DEPUTY MANAGER MAINTENANCE CHIEF MAINT TECHNICIAN CAR DRIVER CHIEF DRAFTSMAN CHIEF MAINT TECHNICIAN ENGINEER .DME 3.764 BA. MANIKPURI RUKDEO DAS MAIN TECH PATIL B V CHIEF ADMIN.221 DME 30 CHIEF PROCESS TECHNICIAN 2.453 NON SSC 1.MGR.215.436 SSC/SSLC.166 NON SSC 2. WORKS (P) LTD. ASST.056.083 ITI/NCTVT DRAFTSMAN 2. STORES.516. ITI/ NCTVT MACHINIST 29 28 29 28 28 27 25 24 24 24 16 38 36 36 30 33 26 19 23 30 33 36 32 ESSO STANDARD REFINARY CO.EME BA BA SSC SSC SSC.305 NON SSC 3.802 SSC/SSLC.908.094. INDIAN ARMY KURLA RUBBER FACTORY INDIAN AIR FORCE Employees listed in the statement were employed for part of the year and were in receipt of remuneration at the rate of not less than Rs.058 251.588 2.242 B.258 1.MAINT Remuneration Qualifications (Rupees) 4 5 Experience (Years) 6 Date of Joining 7 7-Mar-78 4-May-82 7-Jan-82 17-Jul-72 7-Jan-68 7-Aug-68 9-Mar-73 1-Jan-74 3-Jan-74 3-Jan-74 2-Mar-75 4-Jul-75 5-Feb-75 7-Jan-75 15-Sep-75 21-Sep-75 10-Jan-75 12-Jan-75 28-Feb-77 7-Jan-76 3-Nov-77 6-Jan-77 7-Mar-78 12-Mar-79 2-Feb-81 6-May-81 24-Aug-81 1-Sep-89 8-Feb-67 18-Nov-68 8-Jun-68 11-Sep-74 27-Mar-72 20-Dec-78 16-Sep-85 12-Nov-81 10-Oct-74 11-Oct-71 11-Nov-68 2-Oct-72 Age Last Employment 8 52 51 53 58 58 59 53 55 56 56 55 55 57 53 56 51 57 54 56 55 57 58 53 50 51 58 47 39 56 60 60 52 54 49 60 48 53 52 56 60 9 ECONOMIC CONSTRUCTION COMPANY TUBE WELD ENGG. 30 LICENSIATE IN ELEC.852.253.056 SSC/SSLC 30 CHIEF ACCOUNTS ASST. 1.974 BA 29 CHIEF PROCESS TECHNICIAN 2.508.641 BSC. DIAS & COMPANY I. LTD.088. LLB SSC BSC CHEMISTRY BSC SSC.H.049.Dip in PRODUCTION ENGG 2. 46 .143 BE (MECHANICAL) 2.666 BSc Engg (MECH. 3. 2.841.15 – 6.966.314 SSC/SSLC 32 31 31 31 30 30 30 MANAGER MAINTENANCE 3. P2 & ASSOCIATES CADICO CHEMICALS PLASTIC DIVISION.027 1. ANIK INDIAN AIR FORCE M/S.005. ANNEXURE .143 2. No.O.265. 2. WILLIAM SERRAO. Employment in the corporation is non-contractual.545. None of the employees are related to any of the Directors.PROD DY.COM 33 1. Employment provides for termination of services by either party giving one month’s notice. ASST.351. LTD.599.951 BSC 2. 135 GANESAN R 136 KARGUTKAR RAVINDRANATH MANOHAR 137 SHETTY D V 138 DABADGHAV S V 139 VAIDYA PRAKASH UDHAV 140 PATTEKAR VILAS V 141 BABAR S B 142 GAIKAR B V 143 SANGARE D D 144 MENEZES W 145 GORE P M 146 RANE D S 147 PATEL B C 148 RANADIVE KIRANCHANDRA DATTATRAY 149 MAZGAONKER J N 150 KHADTARE S M 151 D'SOUZA H 152 CHAUHAN S R S 153 SHAH SHIRISHKUMAR BHOGILAL 154 BANDEKAR SUBHASH SAKHARAM 155 SUVARNA SANJEEVA KADYA 156 VARTAK S D 1. 157 SAWANT D S DEPUTY MANAGER . HINDUSTAN PETROLEUM PUMP M/S.265.642 SSC DME BA.990.089.480 SSC/SSLC. of Employees 3562 – 6348 651 10561 No. ASST. OF INDIA LTD ESSO COOP. SANDHI MOHAMMED HUSSAIN SR ACCOUNTS ASSISTANT SHANBHAG D R CHIEF ADMIN. TATKARE L P SR ENGG MAINT THE INDIAN SMELTING & REFINING CO.876 BSC 27 2.00.063.203.382 1.840 343.447 1.ITI/ NCTVT MACHINIST 2.928.C.777 727.570 2.644 BSC 37 1. MANAGER .FINANCE MANAGER . ESSO NAGAR (WEST) ESRC CANTEEN HUMPHREYS & GLASGOW CONSULTANTS PVT.SABOO SIDDIK POLYTECH KIRLOSKAR OIL ENGINES LTD.837.553.000/.391.SECURITY SENIOR MANAGER CES CONSTRUCTION PANCHBHAI RAJENDRA B DEPUTY MANAGER MAINTENANCE ALMEIDA LYDIA A CHIEF SECRET.083 SSC/SSLC CH MGR-PROJS MTLS 3. 2005 Group A B* C D Total Total No. ECONOMIC CONSTRUCTION COMPANY PLA .171 2.1994.P&A 158 PRADHAN SANJAY SURYAKANT DY MGR-QUALITY CONT 159 KASHID D M DY MGR .) 1.272 2. LTD. 1 Name Designation/ Nature of Duties 2 3 CHIEF ACCOUNTS ASST DY MANAGER .106. of Women Employees 219 – 419 27 665 % of Women Employees 6. WILLIAM’S CLASSES H. LTD.MNTC MANAGER .QC 160 DESHMUKH ANIL MADHUKAR 161 RAJARATHINAM T 162 163 164 165 166 167 168 169 170 171 172 173 174 1.687.ELECTRO APPLIANCES INDUSTRIAL CONSULTING BUREAU S.209 SSC/SSLC. CENTURY SPINNING & MFG.LLB.B..53rd Annual Report 2004-05 Annexure to Directors' Report Sr. CO. ADMIN ASST.172.004 SSC/SSLC 1.M.446.30 *HPCL has no posts classified under group ‘B’ as the entr y in non-management grades has been re-classified in group ‘C’ effective 1.
in the backdrop of airline industr y growth and continued to grow in 2004-05.6 MMT in 2003-04 to 17. rising from 14.2%.4% in 2003-04. Exports of petroleum products increased by 20% in 200405. primary and semi-finished iron and steel. Diesel consumption grew by 7% against a marginal growth of only 1% in 2003-04. In value terms. On the external front. The Economy had to contend with a deficient South-West monsoon. exports recorded a growth of 24.3 per barrel in March.3 billion in 2004-05 against 47 . 2004 to $49.1% growth in 2003-04. 2005. Naphtha and ATF were two of the fastest growing products in 2004-05. The Services sector is projected to have maintained its growth momentum at 8. a commendable per formance given that it registered the decade’s highest growth rate of 8. plastic and linoleum products and petroleum and crude products were the key drivers of exports growth. The demand of the Asia Pacific Region continued to surge ahead of the demand of western nations. petroleum product exports went up by 75% in 2004-05. Agriculture sector growth is expected to be at 1.5 MMT in 2004-05. the highest growth recorded in the last eight years.7% in 2004-05 maintaining almost the same growth rate as last year. Iron ore. ATF consumption had grown at 9. hardening commodity prices as well as damage caused by the tsunami on the east coast of the country.5% in 2003-04.9% compared to 9. Crude oil prices witnessed the most dramatic rise in the past year. Petrol demand continued to grow at about 4% as in 2003-04.1% in 2004-05 on top of 21% growth seen in 2003-04. with the average price per barrel of the Indian Basket crude rising from $32.8% in 2004-05. Deficient rainfall to the tune of 12% below long period average was the main reason for this poor performance. manufactures of metals. This reflected the confidence of the investing public on the corporate sector and the buoyancy of capital markets boosted the avenues for mobilisation of resources from investing public. Advance estimates indicate that Industry grew at 7. Realisation was $6.9% in 2004-05. Price movements were impacted further by the concerns about the insecurity of supply due to natural calamities (like Hurricane Ivan in Gulf of Mexico) and geo-political tensions including terrorism and strikes in producing countries. In the industr y sector. manufacturing GDP is estimated to have expanded by almost 9% in 2004-05 against 6. Naphtha consumption increased by 18% on the back of new petrochemicals capacity. Petroleum product consumption increased by 3. SKO and LDO consumption too continued to decline in 2004-05.1% in 2004-05 against almost 10% growth in 2003-04. The international crude oil markets have witnessed fundamental change in the demand-supply scenario.2 per barrel in March. transport equipment.Management Discussion & Analysis Report ECONOMIC SCENARIO The Indian economy recorded a growth of 6. The Stock Market Sensex moved from 5655 points in April 2004 to a peak of 6493 points in March.9% growth in 2003-04. registering a growth of 14. Bitumen consumption declined substantially dropping from 13% growth in 2003-04 to 1% decline in 2004-05. 2005. Naphtha consumption had actually declined in 2003-04. The huge increase in demand across the globe and inability of supply to keep up to the demand played a major role in the rise of the crude oil prices.
expected to fare well next year also. The private oil companies have gained a market share of around 2. Despite this surplus. caused prices to rise above $50/bbl. As a result. refining capacity.46m barrels a day – an increase of 3. Private oil companies accounted for 1 MMT of the 2.4 per cent. The Oil sector is. alongwith factors such as speculative funds. Petroleum products consumption in the country was around 111 MMT in 2004-05. limited complexities of Indian Refineries etc. lower margins on Diesel and Petrol and had to bear the burden of subsidies on products like LPG and Kerosene.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Foreign exchange reserves stood at $135. A corollary of high demand has been high oil prices. 48 . High demand coupled with tight supply chain. at around 132 MMT.7% over 2003-04. In 2004.5 MMT incremental retail sales of MS and HSD in 2004-05. The industrial sector is expected to lead the growth followed by services. the global demand for oil rose by 2. The Agricultural sector may not do so well due to delay in onset of monsoon.14 billion at the end of the financial year.4% in 2003-04. China has been the growth story in the region with oil demand growing at 8% and accounting for almost 80% of incremental demand in the Asian region in 2004. The continued upward trend in the capital market would support further growth in economic activity. The inflation rate was higher at 6. The country’s second LNG terminal was commissioned by Shell in Hazira. Imports went up by 37% in 2004-05 with POL imports increasing by 45%.) $3. therefore. nearly 18 MMT petroleum products were exported.4 million barrels per day (mb/d) vis-à-vis refining capacity of 22 mb/d. Oil consumption in Asia in 2004 was around 23. Gujarat. continues to outstrip demand. SECTOR OVERVIEW Downstream oil sector in the countr y faces a positive demand environment basis a good economic growth. Fuel group exhibited an inflation rate of 10% due to increase in prices of coal and petroleum products. an accrual of $27. This is both the fastest rate of growth and the largest absolute increase since 1978.6% in retail sales of diesel and petrol. Naphtha consumption in the western region has gone down in 2004-05 due to greater gas availability.4 billion over reserves in 2003-04.6 billion in 2003-04.7% in 2004-05 compared to 5. This has af fected the revenue realisations of the marketing companies. refining margins have been good due to tight demand-supply balance in Asian region. Projections indicate that the economy is likely to grow at around 6% in 2005-06. This has augmented the availability of gas in the western region of the country. Oil Marketing PSUs recorded lower profits due to wide gap between the crude and product prices. stretched production capacities. however. It must be noted that these four products constitute 70% of the Indian petroleum product basket. a growth of 3. The gain has been larger in the diesel segment as private companies have concentrated largely on highway sales. On the supply side.
62 MMT for the previous year and our Mumbai Refinery and Visakh Refinery together recorded the highest ever throughput of 13. greater expenditure to meet new competition and lower realisation from finished goods.Management Discussion & Analysis Report (Contd.27 MMT as compared to 18. A portion of the subsidy impact was also shared by the upstream companies.70 MMT for the previous year. Customer experience at the retail outlet is sought to be improved under the aegis of “Club HP”. The growth trend in MS/HSD our main product line have been successively increasing by registering highest growth rates in the industry. increased Refiner y Sales Volume.30 per barrel from the earlier years of $4. Projects are underway to improve efficiency of the supply chain so as to optimise costs. The main reason for HPCL’s lower profit for the year was due to the wide mismatch between the crude and product prices and the need for the Corporation to bear the burden of subsidies on products like Kerosene and LPG. MOP&NG regarding per formance targets that are to be achieved by various functions in the Corporation for each financial year. On the refining front the average margins for the year have gone up to $5.) The new auto-fuel policy announced by the Government of India mandated Euro-III emission norms for eleven major cities with effect from April.94 MMT as compared to 13. These emission norms require changes in petrol and diesel quality including reduction in sulphur limits. The marketing volumes achieved were the highest ever at 19.8% increase. 1277 crores as compared to the net profit of Rs. Indian refiners are investing heavily in projects to produce products that conform to new standards. The various initiatives of our different SBUs as highlighted herein are aimed towards sustaining profitability and future growth. All these developments point to an increasingly competitive industry that has to attain a fine balance between high raw material costs. MOU PERFORMANCE : The Corporation each year signs a ‘Memorandum of Understanding (MoU) with Government of India through its Administrative Ministr y. Branded fuels like Power and Turbojet have been introduced. Attention is being focused on hither to relatively neglected rural markets. increased Refiner y margins.45 per barrel. Similarly the Aviation and Lubes business line have also made distinct impact in terms of value and growth in the market. 56333 crores in 2003-04 showing 14. 64690 crores as compared to Rs. 2005. the Corporation recorded a lower net profit of Rs. HPCL has been following a differentiation strategy to retain and expand its sales. 1904 crores for the financial year 2003-04. New oppor tunities opened through expansion in sectors such as aviation are being pursued vigorously. The Corporation has been achieving an all round “Excellent” rating on its performance vis-à-vis MOU targets for thirteen consecutive years upto 2003-04 as a result of the concerted efforts of all the employees. increasing costs relating to environmental compliance. Despite significant physical performance in terms of increased Refinery thruputs. 49 . PHYSICAL AND FINANCIAL PERFORMANCE The turnover during 2004-05 is Rs. The performance of the Corporation in the year 2004-05 also received “Excellent” rating.
which represents a capacity utilisation of 111.29/bbl against previous best of $4. Visakh Refiner y Shri B.A. Mehta.K. General Manager Projects. Rao. The distillate yield was 68.7 MMT achieved during 2003-04. General Manager (I/C). Sulphur Recovery Unit at Mumbai Refinery 50 .D. MS.S.5 MMT.C. Visakh Refinery Shri P. Visakh Refiner y Shri S.B.) REFINERIES Refineries Team Shri V.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Executive Director International Trade & Supplies Shri D. Rao. ATF and MTO during the year. General Manager Finance. It achieved highest ever FCCU thruput and production of LPG. Mumbai Refiner y Shri K.B.30% during 2003-04. General Manager International Trade Shri A. Mumbai Refinery (MR) Mumbai Refinery achieved a Crude thruput of 6. General Manager Operations. Mumbai Refiner y Crude thruput and Capacity utilisation HPCL refineries achieved the highest ever combined crude thruput of 13. Sathe. Raju. General Manager Operations. Namdeo.12 MMT as against its installed capacity of 5. Executive Director Mumbai Refiner y Shri A.96% as compared to 68.K.2%.V. Mahajan.26 per barrel in 2003-04. Fuel & loss recorded was 6. which was better than the MOU target of 7.94 MMT as against previous best thruput of 13. Executive Director Refiner y Coordination Shri G.A. Deshpande. It also achieved highest ever GRM of $5. Shirwaikar.57%.2%.
which was better than the MOU target of 6. which corresponds to 104.B. Mumbai Refinery Green Fuels & Emission Control Project (MR-GFECP) MR has undertaken this mega project at a cost of Rs. optimisation of GTG firing/Boiler operations to improve refiner y’s profitability.09/bbl against previous best of $4. Lal.3 % as compared to 73.Management Discussion & Analysis Report (Contd. Specific Energy Consumption has improved consistently during the last 5 years. Shri S. MOP&NG inaugurating the Refinery Technology Meet. FCC Gasoline Hydrotreater unit with associated auxiliaries and revamp of existing CDU-I/VDUs and FCC Units.5 MBTU/BBL/NRGF during 2003-04. Also seen in the picture is Shri M.9 MMTPA.59 MMT during 2003-04.82 MMT as against the previous best thruput of 7. Secretary to Government of India.5 MMTPA). Golden Jubilee celebrations at Mumbai Refinery Visakh Refinery (VR) VR achieved highest ever crude thruput of 7.C.) Mumbai Refinery undertook debottlenecking of FCCU to improve thruput as well as distillate yields.61 per barrel in 2003-04.3 % capacity utilization of installed capacity (7. VR also achieved highest ever GRM of $5. Visakh Refinery has also initiated steps to improve GRM like change in crude mix.8 MBTU/BBL/NRGF during the year as compared to previous best of 101. It has also initiated various steps like change in crude mix. 1152 Crores (October ’02 price) to produce the MS/HSD of EURO-III grade for supplies in Metro/Mega cities and Bharat stage – II grade for supplies in the rest of the country. Tripathi. It also achieved lowest “Specific Energy Consumption” of 100.12%. Fuel and loss recorded was 6.5 to 7. The distillate yield was 75. The major facilities proposed under this project are NHT/CCR. The project when completed will also enhance the refining capacity from current level of 5. Isomerization unit. C&MD 51 . optimisation of VBU operations. De-bottlenecking of LPG Merox Unit treating facility and crude receipt through VLCC to improve profitability.5%.9% for the year 2003-04. It achieved highest ever DHDS thruput and production of Propylene and HSD.
2005 onwards. In the meanwhile. EURO-III MS production/supply is expected to commence from the last Quarter of 2006.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd.) MR has already commenced production of BIS-II MS/HSD and EURO III HSD from January. CDU MeroxTreating Unit at Visakh Refinery Visakh Refinery Clean Fuels Project (VRCFP) Visakh Refiner y is currently implementing this project at an approved cost of Rs. 2005 and May. Major facilities proposed under this project are NHT/CCR/NIU/FCC NHT in MS block. 1635 crores (April '03 price) to produce the MS/HSD of EURO-III grade for supplying to Metro/ Mega cities and Bharat stage – II grade for the rest of the country. Flue gas Desulphurization project and revamp of existing FCCU-II & DHDS Units. 2005 respectively. the Corporation is procuring EURO-III MS from industr y sources for meeting the Mumbai region’s demand till completion of GFEC project. In the meanwhile Euro-III MS demand of Hyderabad region is being met from the refiner y by utilizing appropriate crude mix and blending of streams. 52 . VR has commenced production of BIS-II MS/HSD & EURO III HSD from 1st Januar y. after implementation of this project. after implementation of on-going GFEC project. EURO-III MS production is expected to commence from the last Quarter of 2006.
DNV France. In-house Training Programs for Operation and Maintenance Crew on Pumps and Mechanical Seals to enhance pumps reliability. l l l Safety Awards Mumbai Refinery l Prestigious Oil Industr y Safety Award (OISD) for the year 2002-03 for ‘Best Overall Safety Performance’ amongst Refineries for the 2nd year in a row. National Safety award 2003 for achieving the largest number of Manhours without a Fatal/Non-Fatal Accident/Total Permanent Disability. The following major initiatives were taken by both the Refineries in this area : l Improved reliability of equipment through strict adherence to Preventive Maintenance (PM) schedules. l l Achievements l MR commissioned the DHDS second reactor in ser vice & commenced HSD production confirming to EURO-III norms.) Major Maintenance initiatives by the Refineries : Both the Refineries accord highest priority to preventive maintenance to avoid unplanned and emergency shutdowns. l 53 . Detailed study of the rotar y equipment sealing system and measures were taken to improve the reliability. VR received ISRS Level-8 (International Safety Rating System) from M/s. Root Cause Failure analysis for the critical equipment Erection of a column at Visakh Refinery and taken cor rective measures to improve service factor of equipment. National Safety award 2003 for the lowest average weighted accident frequency rate for the 3rd consecutive year (2001/2002/2003).Management Discussion & Analysis Report (Contd.
E. During 2004-05.19 MMT was of imported crude.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd.75 MMT was from indigenous source.26/bbl.).23 MMT of imported crude oil worth CIF value Rs.09/bbl) vis-a-vis 2003-04 (MR-$4. Commenced production of Euro-III. During the year. VR-$5. while the balance quantity of 10. VR improved crude basket by processing new Crudes viz. West Africa. Adnoc (U. emphasis was laid on widening the crude basket so as to have an optimum choice from a variety of crude oils. MR/VR achieved higher GRMs in 2004-05 (MR-$5. Somo (Iraq). while the balance quantity was purchased on spot basis. HPCL imported 6. Belayam. VR-$4.61/bbl) due to general buoyancy in international market caused by surging demand led by China. EA.A.67 MMT of crude on term contract basis from M/s. Petronas (Malaysia) and NOC (Libya). l l CRUDE OIL PROCUREMENT HPCL’s two refineries at Mumbai and Visakhapatnam processed 13. 18 new crude from Malaysia. MS-HSD. 10.3/bbl between Arab Light and Basrah. Yemen.787. M/s.94 MMT of cr ude oil during 2004-05.98 crores was 54 . Seria Light and Benchmas. M/s. Of this 3. 15 crores per annum based on differential margins of about $0. Thailand and Brunei were processed in Visakhapatnam refinery.) l Star ting from June 2004 received four parcels of crude through VLCC with Lighterage operations during 2004-05 and realised freight savings of approximately $0. Continuous attempts are being made to widen the crude basket and diversify the sources of supply. 13. Nigeria. During the year. Libya.29/bbl. Brazil and Equador were included in the acceptable crude basket and 5 new crude from Egypt. The change over of 1.7/bbl. Saudi Aramco (Saudi Arabia). For maximising margins at our Refineries.0 MMT of AL/AM to Basrah improved refiner y margins by Rs.
This year. Export incentives in the form of advance license were obtained against the expor ts made. a growth of around 20% in volume and 47% in rupee value terms was achieved in 2004-05 as compared to the previous year.) purchased. West Coast that are either direct participants in. On the exports front.16 TMT of bulk petroleum products worth Rs. which would enable duty free import of crude oil with CIF value of approximately Rs. In the very 3rd year from commencement of trading activities. ATS has sponsored an annual Industry Perception Survey which focuses on identifying the most effective Petroleum Trading Company within Asia/Pacific. The project will result in setting up of a trading desk and risk management activities are likely to commence by the end of 2005-06. Upon requests from clients. 1. Oil Price Risk Management : Steps have been initiated to build capabilities and develop skill to face the new challenges of a deregulated market and the various new risks to which the corporation is now exposed. Houston. four VLCC cargoes were finalised for Visakh refiner y and the same were received after lighterage at Kakinada. The first annual Industr y Perception Sur vey for Asia/Pacific Region was conducted in 1997 and the 8th annual survey was conducted for 2004. The first phase of framing the policy is under way. This is the first time HPCL has figured in the first 5 companies nominated under any category.S. Oil Price Management project is one of the tools to cover such risk. Inc. This resulted in freight savings of Rs. over 730. This survey has been transmitted to over 90 dif ferent organisations within Asia and the U. 134 crores. Efforts are being made with major Public/Private ports for installation of SPM facilities at Visakh for reducing the freight cost further by direct discharge of VLCCs.. or service providers to. Petronas & Sinopec) as per the Industr y Perception Sur vey of Asia/Pacific Petroleum Trading Companies for 2004. 55 . 6 crores approximaely per cargo vis-a-vis direct discharge thru Suezmax tanker. The 8th annual survey included seventy nine (79) petroleum companies that have been nominated for consideration and focused on 7 basic categories.Management Discussion & Analysis Report (Contd. This will help in protecting margins for both refinery and marketing divisions and will also proactively address some of the corporate governance issues. 8th Annual INDUSTRY PERCEPTION SURVEY of Asia/Pacific Petroleum Trading Companies for 2004 Annual industry perception survey of Asia/Pacific Petroleum Trading Companies is conducted by Applied Trading Systems. Towards minimising crude freight cost. Applied trading system specialises in analysis of the developments in the petroleum industr y and has been releasing daily repor ts on the petroleum industr y since 1988. HPCL has been ranked as the 4th best NOC Company (after IOC.425 crores were exported. the Petroleum Trading Industry.
P. General Manager Operation & Distribution Shri S. Executive Director Retail Shri S.V.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Progressive deregulation of the sector has provided oppor tunities to large private players to enter into the fray and seriously work towards grabbing their share of the market in the shortest possible time.) Marketing Team Shri S. dealer relationship. The emerging challenges in Retail segments are. witnessing a scenario of increased competition and companies competing aggressively for the share of market. therefore. General Manager North Zone Shri B. Gawali. General Manager Pipelines Shri S. Savla. pressure on margins and volumes. Pai. Shankaran. General Manager West Zone Shri R. Executive Director Direct Sales Shri A. General Manager East Zone Shri M. Sudhakara Rao. General Manager South Zone Shri A. price as a tool for competition. aggressive network development by new and existing players. General Manager LPG Shri S. Executive Director Projects & Pipelines Shri S. Chaudhry.B. Sahni. Biswas.K. Mundle. Singh. Executive Director LPG Shri K.S. 56 .K. aggressive marketing and value for money offerings.Aviation MARKETING RETAIL BUSINESS The Oil sector is undergoing a rapid change.P.B. General Manager Engineering & Projects Shri Y. Damle. increasingly demanding customers looking for greater choice. The industr y is. Thosar. all directed towards delighting the ultimate consumer. Gururajan.S. use of technology for providing differentiated services. Deputy General Manager .R.K.
attracts special focus in the organization. ARB earnings. Shri S. MOP&NG. 2002. focus on branded fuels and branded lubricants and has the best return on investment. As a result. 57 . Retail delights customers by fulfilling their stated and latent needs with innovative quality products and services. Retail SBU vision was cocreated which reads as under : l l l l l Retail is the highest performer in sales growth over industry. Retail has sustained profitability through increased sales. This was followed by formation of sub groups who spread across various market segments such as Highways. The entire focus was to develop the Vision and Strategy to meet the stated and latent needs of the customers.) RETAIL SBU Retail constitutes nearly 60% of HPCL’s business and.C. Secretary to Government of India. Car segment. cost optimization. competitive prices through its loyal and committed dealers. Retail has competent. transparent and ethical manner.Tripathi. Retail team has sense of pride. committed and empowered people making the workforce challenging vibrant and happening. inaugurating the first ever online Density Display Unit at HPCL's e-fuel station in Bandra-Kurla Complex A view of the "Hamara Pump" at Mananjeri. The employees at different levels participated and shared their aspirations. Tamilnadu Retail SBU vision HPCL has been gearing itself well in advance in the face of impending deregulation of Retail sector from April. To achieve the Retail Vision strategies were to be formulated. An Organisational Transformation Exercise was undertaken in the corporation for achieving continued excellence. HPCL has a market share of nearly 24% amongst PSU Oil companies in combined petrol and diesel volumes.Management Discussion & Analysis Report (Contd. therefore. mutual trust and camaraderie conducting business in a fair.
l l First to introduce branded diesel “Turbojet” in India. First to introduce the concept of “Mobile Dispensers” as a Rural initiative.) 2/3 Wheeler segment and Rural segment. First to launch “Drive Smart” a co branded fleet card focused on meeting the specific needs of fleet operators/transport companies.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. They interacted with the customers and various focus groups to find out specific needs of the customers. More than 2250 outlets have been branded and an aggressive expansion programme is in progress. Retail Outlets Retail Initiatives Retail SBU has taken several pioneering initiatives in the Oil Industry and has many “Firsts” to its credit in the last 2-3 years. First to set up low cost Rural outlets under the brand name “Hamara Pump”. First to introduce “Exclusive Mobile Labs” to enhance the capabilities on quality checks. Thereafter a Customer Centric Growth Strategy was developed with focus on Absolute Customer Delight as unique value proposition for each customer segment. First to set up “e-fuel stations” in India through large scale implementation of Retail Automation in line with international practices of quality thru quantity control. 58 . l l l l Retail Branding HPCL has branded its Retail outlets under the name “Club HP” positioned on the platform of providing outstanding customer and vehicle care.
) Branded Fuels The need of branded fuels has been greatly felt by customers with the rapid growth of new generation vehicles in the past few years. This has given world class look and appearance to its Retail outlets which stand out in the Oil Industry. 1336 crores during 2004-05. NETWORK EXPANSION : With the commissioning of 1163 retail outlets during 2004-05. 26 ATMs added during 2004-05. vehicle accessories. through tie ups with reputed brands.5 million customers under the loyalty programme. which is highest among all the Oil companies. HPCL has total network of 6667 Retail outlets as of 31. courier services etc. New Visual Retail Identity – “Project Aakarshan” HPCL Retail SBU is the first to introduce the concept of New Visual Retail Identity to give fresh and attractive look to the Retail outlets. many of them.3. Non Fuel Business Retail has built a profitable non fuel business through wide range of value added facilities to customers. “Power” sales constitute more than 11% of total MS sales and growing rapidly. upgrading them as Kisan Vikas Kendras. The HPCL-ICICI co branded credit card has been recognised by VISA as the largest base and fastest growing co branded card in South East Asia. Retail SBU launched successfully a card based loyalty programme comprising of Credit cards/Debit cards/Smart 1 cards/Fleet cards etc. Loyalty Based Card Programme In the continued efforts to build consumer loyalty. 385 “Hamara Pumps” were commissioned during 2004-05 taking the total number to 392.Management Discussion & Analysis Report (Contd. In a short period of three years Retail SBU has acquired a customer base of over 2. The total sales through these cards was Rs. These include ATMs. first in the Industry towards quality assurance under the banner of “Good Fuel Promise” at the Retail outlets. Quality Assurance : Retail SBU has taken several initiatives. This is testimony to the acceptance of this premium product by the customers. take away food counters. 59 . Turbojet sales similarly constitute about 7% of total diesel sales and are growing. As a part of Rural initiative. Seeds. Pesticides and fertilizers are also being sold through select Retail outlets. HPC has successfully introduced “Power” in the petrol segment which is now available at more than 1200 outlets in the countr y. Similarly “Turbojet” was launched in diesel segment and is available in more than 1400 outlets. 2005. to the farmers.05. taking the total number to 208 as of March 31.
HPCL has taken the initiative to monitor tank truck movements on real time basis. It is essential that they remain alert and sensitive to the customers need when they come to the Retail 60 . ser vices and promotional campaigns etc. l l l l Retail Automation : HPCL has pioneered the concept of e-fuel stations in India having fully automated over 40 Retail outlets in Mumbai/Vashi.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Customer Satisfaction Index (CSI) was under taken by the Regional Offices covering 1633 Retail outlets across the countr y during 2004-05. Retail SBU has taken unique initiative in launching Quality/Quantity awareness campaigns under the Club HP promise of Good Fuel Promise. These labs have strengthened our capabilities of carrying out surprise checks at the outlets. Training/Motivation of Dealers and Dealermen : Dealers and dealermen are the initial point of contact for our Retail customers. Global System for Mobile Communication (GSM) and a software which links GPS and GSM with the Geographical Information System (GIS). It focuses on monitoring the stocks. More than 100 such campaigns have been conducted across the country.) l 20 exclusive Mobile Labs were added during 2004-05. sales and inventor y controls at Retail outlets by capturing. Club HP helpline : HPCL has introduced Club HP Helpline in 11 major cities in India through toll free number 5500-5050 which facilitates the customers in receiving various information on HPCL Retail products. taking total number to 416 as of March 31. collating and analysing all the transactions electronically. The System has been successfully piloted on 20 tank trucks and is being expanded to all the company owned tank trucks across the country in phase I. Third party Surveillance Audit by M/s. The system comprises of Global Positioning System (GPS). Vehicle Management System : As a step towards ensuring quality of products during transportation to the Retail outlets. 363 Retail outlets received ISO certification during 2004-05. Bureau Veritas was completed at 1303 Club HP outlets during 2004-05 which has resulted in remarkable improvement in the quality and service standards at the outlets. 2005. Large scale expansion is being carried out covering more than 400 additional sites with focus on Highways. as a mechanism to receive customer feedback and further enhance the service provided to the customers. Retail Automation is an international practice for Quality Assurance through Quality control.
AWARDS : l Received Excellence Award “Forecourt Retailer of the Year-2005” instituted by KSA Technopak – ICICI Bank on February 24. In addition to above. Highway Dealermen Training : The training module “Highway Stars” aims to sharpen customer oriented skills of Dealermen in highway retailing. Dealermen motivation : 1949 dealermen awarded under the scheme “Spot & Reward”. 45 locations have been identified for such training centres and 29 Gurukuls have been set up.Management Discussion & Analysis Report (Contd.17%. which aims at giving immediate recognitions for the good work by the dealermen.8% growth in petrol sales which is higher than Industry growth of 4. 2005. To enhance their capabilities the Corporation has initiated the following training programme : Gurukul : Training Centres for “in-house” training programms are being developed at prominently located company-owned model retail outlets in each Region for training Dealers/Dealermen on a regular basis. 98 programmes have been conducted covering 2351 participants during 2004-05. Following are some of the performance highlights : HPCL has achieved 4. Similarly. Received “Excellence Award 2005” for outstanding contribution in Petro Retailing Business by DEW Journal on March 20.9%. “In-sit-U” training programme was conducted covering 6803 dealermen through 827 training programmes across the Regions. Similarly growth of 4. 2005. l 61 .1%. 41 Dealermen children were given scholarships during 2004-05 across Regions. As such in the Retail business HPCL has shown superior per formance to Industry in the year 2004-05. Dealermen Training : Dealermen training “customer first” conducted covering 9684 dealermen on all India basis in 482 training programmes held by professional agencies during 2004-05.19%. Retail SBU Performance As result of various marketing initiatives Retail SBU has achieved land mark performance in the year 2004-05.) Outlets and spare no efforts to provide the required services to the customers. Market share in diesel has been increased by 0.8 % has been achieved in diesel sales which is higher than Industry growth of 3. thereby increasing market share by 0.
HP Gas is the world class and most preferred brand by the customers for the quality. Retail SBU in HPCL understands the challenges ahead and the entire Retail team stands committed to achieve the cocreated vision. processes and ultimately working in teams to meet the contemporary business imperatives. essential that we anticipate the future. l Unloading of the first LPG Vessel at the newly commissioned "Visakh Outer Harbour" Pampore LPG Plant maintaining supply line in the Kashmir valley even in adverse weather conditions 62 . initiate revolutionary innovations and change the historical pattern of management by aligning strategy. culture. therefore. appearance. structure. LPG SBU The co-created vision of the SBU is as under : l l HP Gas is the market leader in growth and profitability in the industry. people. In order to succeed. Multinational companies and other new players are also trying to set up their network. innovations. it is.) Opportunities and Future Challenges Petroleum Retail Marketing provides immense growth opportunities. The key to success is a differentiated ser vice at the forecour t and the winner will be the one who ultimately delivers the promises of his Brand. They would need to deliver value propositions that are relevant to the customer in a consistent manner across the retail network. They have already commissioned more than 1000 Retail outlets with aggressive expansion plans. Successful Petroleum retailing companies would need to address all the challenges in a comprehensive and integrated manner. The competition is getting intense with private players working hard to grab market share. HP Gas is global in entire gamut of LPG marketing and trading with massive presence in rural sector.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Each one is striving to increase share of market as quickly as possible. services and offering total energy solutions for all gaseous fuel applications.
Marketing initiatives : HPCL was the first Company to brand LPG Marketing under the platform of “Ji Haan” focusing on instant ser vice to LPG customers. Supreme Court of India.) l HP Gas is a caring organization with a strong bond with its customers. M. 1716 has now been extended to a total of 10 cities and Internet booking facility is available at 7 cities.Management Discussion & Analysis Report (Contd. were further consolidated across the countr y. Ahmadi. HP Gas won the award under the category of ser vices against stiff competition from strong brands such as Wipro and Hutch. offering the customer the choice of verifying the correct weight of the cylinder at the doorstep which was not only followed by the industry but also very well appreciated by the public at large. Our ‘Ji Haan’ services has not only set a benchmark in the Indian LPG marketing scenario but also has become synonymous with reliability and punctuality. presented the Award. extended delivery timings between 8 am and 8 pm on all days of a week. HP Gas is a team of highly motivated. HP Gas was once again the first to anticipate the customer needs and visualise their future aspirations.2 crores.50 million Metric Tonnes achieving an all time record bulk sales of 83 TMT and Non-Domestic Packed sale of 47 TMT notching a growth of 33% in this sector. 19 lakhs new connections were given during the year taking the customer base to nearly 2. Former Chief Justice. LPG Marketing has undergone tremendous change in the last few years with our countr y getting distinction of being one of the fastest growing market with regard to LPG consumption and one of the countries with largest number of domestic consumers serviced through LPG Cylinders. During the year 2004-05. Venkatchaliah. ‘HP GAS’ has been awarded the “Golden Peacock Innovative Product/Service Award for the year 2004” for its various initiatives on customer ser vice by the jury headed by Justice A. Justice M. Consolidation of the ‘Ji Haan’ Ser vices was given emphasis and services such as delivery of refills within 24 hours. emphasizing the importance of meeting the customer expectations which the industry followed. dealers and all other stakeholders. competent and disciplined employees and conducts its business in ethical and transparent manner. Former Chief Justice of India and Chairman Centre for Corporate Governance. The single contact point help line no. 160 new LPG distributorships were commissioned during the year taking the total distributorships to 2153. 63 . LPG SBU has marketed 2. This initiative of HP Gas has bagged the ‘Dainik Bhaskar Indian Marketing awards 2004’ for innovative marketing initiative for customer services. l l The LPG Business line accounts for approximately 13% of the total volume base of HPCL. HP Gas is totally committed to safety. health and environment. installation of a new connection within 24 hours etc. N. We introduced the ‘weight campaign’.
The ‘HP Gas Rasoi Ghar’ concept has gained popularity not only at the village level but also in corporate world. This concept is also picking up pace in the forest areas with state forest departments joining hands with HPCL for taking forward this innovative concept. Multiple channels such as TV. we have taken several initiatives such as tie-ups with village level organisations for speedier implementation of the Rasoi Ghars. with permission to set up 10 CNG retail outlets in the City of Ahmedabad. which was the first company to introduce Auto LPG in India. Non-Domestic and Bulk LPG installations across the country through trained distributor staff and 3rd party agencies to ensure that the LPG installation is safe. which has resulted in sales of more than 8000 MTs. Safety & Environment : Safety has always been accorded the highest priority in HPCL and to reaffirm the same the current year was obser ved as ‘Customer Safety Awareness Year’ all over India.) Thrust Area : LPG has made all the difference between the urban and the rural woman. In line with our commitment to provide a clean eco-friendly fuel to our rural population. Special drive was also undertaken to make the rodent proof LPG hose called ‘Suraksha LPG Hose’ the most preferred rubber hose for our customers. number of steps were taken such as reducing costs through independent product sourcing. HPCL has been the front-runner in the field of Auto LPG.000 families. It has also successfully piloted several new alternate application of LPG and converted 50 industries from alternative fuels to LPG. Government of Gujarat for setting up CNG infrastructure in Ahmedabad.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. To strengthen our hold in the industrial and commercial sector and also become more competitive. generating ND packed and Bulk volumes of 1500 MTs per month. aggressive credit and discount policy etc. and Posters were adopted for increasing awareness besides conducting sensitisation programmes for deliver ymen and customers with door-to-door campaigns and inspections of Domestic. HPCL. bringing about a drastic difference in their lifestyles. Press. HPCL has been awarded the “National Excellence for Innovative technologies” for its ‘Rasoi Ghar’ concept besides being extensively covered through TV and press media. HPCL has also received approval from Ministry of Energy and Petrochemicals. Recognising the need to promote environment friendly alternate fuel. 64 . commissioned 6 more ALDs during the year taking the total numbers to 31. HPCL has taken steps to bridge this gap by focusing in rural areas. The award instituted by Wisitex Foundation in association with Indian Merchants Chamber was awarded to HPCL in recognition of our selfless and untiring effor ts and far reaching vision towards rural development and upliftment. Today there are over 1350 Rasoi Ghars operating across the country benefiting over 15.
05. Keeping in mind customer requirement of correct quality and quantity product. This will boost our existing bottling capacity from 1978 TMTPA to 2180 TMTPA. This would enable us to provide efficient service to consumers and also help us to roll out IT enabled value added services such as single number refill booking service. it would also reduce cost on imported LPG on commissioning of the SALPG cavern storage project. With this. ERP rollout is complete at 32 out of 40 Plants and 22 out of 26 LPG ROs as of 31. 65 . Further the commissioning of the GAIL Visakh – Vijayawada – Secunderabad Pipeline has enabled LPG from the Visakh LPG Import Facility/Refinery to be pumped directly through the pipeline thereby supplying the larger inland markets at a low cost option. it would be able to handle upto 0. HPCL has successfully installed 10 new projects during the year covering more than 1000 flats.Management Discussion & Analysis Report (Contd. To re-emphasis our commitment of providing quality product to our customers. Additionally with the jetty having a capacity to handle 40 TMT parcels. Distributor computerisation programme completed across the country. The commissioning of the prestigious Visakh LPG Import Facility has enabled HPCL to have the largest import capacity in the country. The 45. Capacity Augmentation program are also being under taken and currently projects at 8 plants are under various stages of completion. 2004. ZERO-Mass Consortium is implementing the smart card based multi-application pilot project in line with the RBI and IDRBT guidelines and approvals. ERP & IT Initiatives : During the year. Loni and Rajahmundr y with a total capacity of 176 TMTPA. With commissioning of the facility. The ZERO-Mass industry Consortium includes Indian and global IT companies with a common commitment to the deployment of vendor independent open inter-operable standards and global best practices to bring benefits of the best technology solutions for mass deployment. the focus during the year was on quality. internet services. state of the art LPG filling and quality control equipments requiring minimum human intervention. loyalty and uninterrupted supply of gas to households. net based transactions with Corporation and build up centralised consumer database.6 million tones of imports per annum and would be meeting the demand of Andhra Pradesh and Orissa.5 crores project would give a major boost in meeting the country’s ever growing LPG requirement.) Opportunities : The Reticulated system (Piped LPG for domestic use) is a value addition to customers.3. 20 Plants and 16 LPG ROs have been linked to ERP. HPCL’s strength had always been its infrastructure and to further consolidate the same 3 grass root bottling plants are being set up at Mumbai. all plants have been provided with fully automatic. Country’s first multi-application smart card for the HP Gas consumers was launched alongwith transit application of BEST on 19th November. with features of safety.
HP DS (LUBES) is delighting the customers by value added services. The future demand of LPG is likely to grow at a CAGR of 8%.R. LPG SBU has chalked out elaborate future plans for the LPG business. The total Indian lube market is 1. l l l l Consequent to the deregulation of the lubricant trade in the year 1992-93.2 MMTPA out of which 65% of the volume comes from the Automotive sector and the balance constitutes the Industrial sector. Understanding customer needs and preferences. the rural segment is expected to witness a phenomenal growth of 17. The period ahead : The road ahead is challenging. customers. Volumes are expected to increase from 9. today. competent and professional team.B. HP DS (I&G) is the market leader in growth with focus on profitability. Though the demand of the urban domestic sector is expected to grow only at 6. Lal.000 MT per annum and.7 million tonnes to 12 million tonnes. This smart card is given to HP GAS consumers free of cost as a value added service and will be having the SV/TV data in secured digitized manner. DIRECT SALES SBU LUBES BUSINESS-LINE The co-created vision of the SBU is as under : l l l HP DS (LUBES) is market leader in growth and profitability.5 million tonnes to 3. HP DS is a learning organisation with committed.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. it is one of the most clustered markets in the country. It has strategically 66 . HPCL has the largest lube refinery in the country with a capacity of 3. ED-Direct Sales at the launch of HP Champion HP DS ensures consumer loyalty through differentiated services. HP DS (LUBES) is most preferred supplier of quality products at right price and time. identifying new areas for use of LPG and setting and achieving high standards in customer service with a view to make it a differentiating factor in marketing of HP Gas would be the key to success in the days to come. Out of this domestic sector demand would be around 11 million tonnes. Keeping in mind the oppor tunities available to HPCL. Shankaran.5 million tonnes. C&MD seen alongwith Shri K.5%.) Around 500 cards were issued as a pilot for study of applications for one month.35. HP DS (LUBES) is a professional and empowered team for quick response to Shri M.5% increasing from 1. hence has the advantage of manufacturing various types of base oils.
Steel and Transport segments. HPCL has undertaken various initiatives : Servicing Small & Medium Scale Customers HPCL has recognised the requirements of small industrial customers who are not otherwise ser viced by the oil companies. The Lubes Division at HPCL met the challenges posed by a volatile lubricant market and registered an impressive bottomline sales of 2.000 MT during the year covering entire range of lubricants and greases. The Division has the vision to be a market leader in growth and profitability. HPCL has gone in for a network of exclusive lube distributors. Kolkata. (RCFL) for marketing of HP Lubricants and Finit (household insecticide) through their dealer network across the countr y. Rashtriya Chemicals & Fertilizers Ltd. It also markets Tractor Oils and Pumpset Oils specifically for this sector. HPCL has developed special products like agricultural spray oils for crops of Apple. Army. Rural Marketing Having identified the need to cater to requirements of the rural sector. 67 . HPCL has opened a network of 50 CFAs to cater to such customers. Focus on Core Sector Business HPCL has put in special effor ts in ser vicing the core sector industries like the Railways. HPCL has tied up with M/s. Rubber. HPCL continues to sell most of its automotive lubricants through the retail network. To meet this challenge the focus is on value proposition to customers which includes product quality.Management Discussion & Analysis Report (Contd. This is being done through soft skilled training programmes. incentives and ser vice monitoring programmes.) located blending plants (all accredited with ISO 9001) at Mumbai. service levels and relationship management through a professional and empowered team. HPCL has registered a significant growth in these segments. Grapes.52. authorised service centres and auto spare parts shops. Coal. Chennai and state-of-the-art Plant at Silvassa. Marketing through Retail Outlets With the recently expanded network of more than 6600 retail outlets in its fray. etc. To achieve the above vision. Network Expansion Considering the shift in buying habits of vehicle owners/mechanics from petrol pumps to bazaar lube shops. The network of 168 lube distributors located across the country in turn cater to a vast network of 15000 lube shops. They have undertaken a micro marketing programme to bring into focus the lube business through the retail network for providing the customers with value added services at the outlets.
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Management Discussion & Analysis Report (Contd.)
Tie-ups with OEMs for Genuine Oils HPCL has tied up with major OEMs like TATA Motors and Kinetic Engineering for marketing of Genuine Oils. The tie up with TATA Motors includes a full range of lubricants for their passenger vehicles and in case of Kinetic 2 & 4 stroke engine oils. Product Promotion To enhance brand equity, HPCL is consistently engaged in product promotion and media campaigns. Research & Development The R&D Centre recently built at Vashi, Navi Mumbai has state-of-art equipment to cater to the needs of Lube Marketing Division. The Centre is constantly engaged in development of new customised products and improving the current formulations and blending process. Development of New Products Keeping in view the various needs of the different segments in lubes, HPCL is innovating and consistently developing new products to meet the market demands. The latest in the list are HP Champion, a diesel engine oil; HP Gasenol for CNG/LPG driven engines; HP Milcy Eurol 15W40 and Dieselino for Euro II compliant engines. Exports Expor t of finished lubes to countries like Bangladesh, Nepal and Kenya continues. The Corporation is making efforts to expand its reach to other neighbouring countries also. About 930 TMT of Naptha and Fuel Oil of the value of approximately Rs. 1425 crores were exported during the year. Awards HPCL won the “Golden Peacock Innovation Award 2004” for in-house solubalising of Viscosity Index Improver additive at Mazagaon plant, for manufacture of multigrade engine oils. Our Silvassa blending plant has won a Silver Safety Award by M/s. Greentech Safety for maintaining high standards of safety and a TERI Corporate Award for Environment, for 2003-04. I&C BUSINESS LINE HPCL’S I&C business line caters to the petroleum product requirement of wide range of customers in sectors like power, fertilizer plants, industrial units, cement, steel, coal, glass etc. In transpor tation sector, we meet fuel requirements of railways, state transpor t undertakings, defence and shipping. During the year 2004-05 we have recorded a sales volume of 5200TMT. HPCL holds market share of about 15.53%. HPCL has a market share of (Major products) 22.4% in Naphtha, 23.5% in LDO, 19.2% in FO, 17.3% in Bitumen and 8.3% in HSD. The business is transacted
Management Discussion & Analysis Report (Contd.)
through 18 regional offices spread all over the country, with the complement of competent and technically strong staff catering to the varied needs of our customers. The business line has set itself a co created vision to be a market leader in growth with focus on profitability, a learning business unit with committed and competent professionals and ensure consumer loyalties through differentiation. In line with the said vision, various initiatives and thrust areas has been identified and are working to achieve to be the most preferred supplier. To ensure customer loyalties through dif ferentiation, we are offering innovative products/ser vice like fuel management, fixed pricing, energy audit resulting in commercial benefits and savings thereby delighting the customers. Considering the thrust given on road infrastructure development, marketing of bitumen continues to occupy special focus. Similarly, special products (Hexane, Solvent and MTO) continue to meet requirements of Solvent extraction units, Tyre industries and Paint industries respectively. With the thrust on expanding business spread, HPCL is focussing bunkering as one of the emerging opportunity area and in this direction has entered into an MOU with renowned multi national company M/s. Chevron’s Fuel and Marine Marketing LLC. With this arrangement, we plan to launch internationally recognised bunkering fuel on competitive pricing and totally upgraded deliver y arrangements for both domestic and international customers. HPCL has the distinction of being the first to introduce a self propelled floating barge to take care of the fuel requirements of barges and vessels at sea. AVIATION The Aviation SBU provides Aircraft Refuelling services at the major airports in the country. The SBU continued to perform in line with the vision it had set for itself in 2002-03 as under :
HP Aviation is the market leader in profitability and growth through a wider network among the industry. HP Aviation has the second largest market share in both domestic and international business in the country. HP Aviation has a highly motivated, inspired and dynamic team, which takes pride in being part of the SBU. HP Aviation inspires confidence in customers by providing the best quality in product and service. HP Aviation practices the highest standards of health, safety and environment in the industry.
The SBU achieved a remarkable growth of 47% in 2004-05. This was the second successive high growth year for the SBU following its 23.8% growth in 2003-04.
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Management Discussion & Analysis Report (Contd.)
In the process, the SBU added 11 new customer accounts, raising its market share from 10.5% in 2003-04 to 14.3% in 2004-05. Over the last two years, market share has increased from 9.8% to 14.3%. Market Share in the Foreign Airlines segment has increased from 3.8% to 21% in the same period. The SBU implemented several customer focused initiatives in its endeavour to delight customers with the best quality in product and service. HPCL's Aviation Ser vice Facilities in Mumbai, Delhi, Chennai, Kolkata, Cochin and Calicut are today the only such facilities to be certified to the ISO 14001 environmental standards, underlining the Corporation’s emphasis on safety and environment. Adding state-of-the-ar t refueling equipment, providing customer orientation training to employees, learning of foreign languages by supervisors to better interact with foreign airline customers etc. are some of the other initiatives that the SBU has taken to ensure a better service offering to its valued customers. The SBU continues its techno-commercial agreement with Chevron Texaco Global Aviation for inputs on current international operating practices and technology in this field. HPCL has begun expansion of its Aviation Service Network by adding its facilities at Bangalore and Goa airports. Consolidating its customer base, expansion of network and improvement in service standards will be the focus for the SBU in the current year. The Aviation SBU has achieved the following unique distinction during the year.
l l l l l l
Only Indian company nominated on the IATA Fuel Suppliers Advisory Committee. Only Indian Company having ISO-14001 certified Aviation facilities. Only Indian Company to win the Golden Peacock Award for Environment Management 2004-05. Only Indian Company providing Refueling Panel Operations service to its clients. Only Indian Company providing e-ticketing for air travel through select retail outlets. Only Indian Company ranked 17th among top 30 companies globally adjudged as “World’s best jet fuel marketers” in survey conducted by the Armbrust Aviation group, USA.
Awards/Recognition 1. Received Greentech Gold Safety Award for Santacruz, Greentech Gold Environment awards for Santacruz/Palam and Greentech Silver Environment awards for Chennai/Calicut ASFs for 2003-04. 2. HP Aviation was ranked 17 globally in the 7th Annual World’s Best International Jet Fuel Marketer held in 2004-05 by Armbrust Aviation Group. 71 airlines par ticipated in this sur vey and rated fuel suppliers on 22 ser vice parameters. This is the highest ranking among Indian suppliers and a considerable improvement on our ranking of 45 in the previous year.
Management Discussion & Analysis Report (Contd.)
OPERATIONS & DISTRIBUTION HPCL’s current infrastructure includes 2 product pipelines between Mumbai and Pune (being extended up to Solapur) and Visakh – Vijayawada – Secunderabad. Presently, there are 36 Terminals/Installations/TOPs and 100 depots spread across the country. These infrastructure facilitate continuous supply of products to the Retails Outlets. During the year, the following new facilities were added : 1. A NEW GRASS ROOT DEPOT AT AONLA, BAREILLY, U.P. The depot construction was completed in record 14 months. It is a Rail-fed depot completed at a total cost of Rs. 10.25 crores including land cost and common industr y siding sharing cost. It has 9080 KL product tankages for storage of HSD, MS, SKO and Ethanol. The depot will cater to the market demand of Bareilly, Pilibhit, Badaun, Rampur (Uttarpradesh) and bridging to Haldwani (Uttranchal). 2. A NEW GRASS ROOT DEPOT AT RAMAGUNDAM, A.P. A new Grass root Depot with total Tankage of 7974 KL for MS, HSD and SKO together, with product receipt through Railway Tank Wagons from Vijayawada Terminal has been completed at a cost of Rs. 11.47 crores and is ready for commissioning. The Depot will meet the requirement of Nizamabad, Adilabad and Karimnagar. The facilities were constructed under the extremely dif ficult terrain and weather conditions involving extensive Rock cutting. The siding facilities were completed by re-routing 2 nos. 132 KV HT Towers in the shortest possible time. 3. 25 KL CAPACITY TANK TRUCKS The Corporation plans to roll out progressively ‘state-of-Art’ 25 KLs Tank trucks (TTs) for supply of products. 2TTs at Vashi Terminal in April 2004, 1 TT in Wadala Terminal and 2 TTs in ASF service at Shakurbasti have been so far introduced. Remaining 15 TTs will be put on road by September, 2005. 4. 40 KL CAPACITY NEW GENERATION TANK TRUCK CCOE approval for 6 months trial operation of Aluminium Alloyed tank truck of 40 KL capacity on Volvo FM 9 X 340, 6 X 4 Trailer Chassis has been obtained for operating between Vashi Terminal and Retail Outlet at Sajgaon on Mumbai Pune Express Highway. These state-of-ar t tank trucks made of Special Aluminium Grade are to be launched during 2005-06 have several safety, security and other technical features which will aid in enhancing distribution of products ensuring inter-alia Q & Q aspects. 5. ADDITIONAL TANKAGE COMMISSIONED A total of 13100 KL additional tankage was commissioned at various locations during 2004-05.
The system is being implemented at 51 more locations and is expected to be completed by March. B) Micro processor based Soft Starters for Lube Oil Pipeline : The system which envisages energy savings based on reduction in the motor starting current and voltage control during part loads based on Torque requirements thereby reducing the Stator core losses.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Other Energy Saving Initiatives : The following additional energy saving measures are under various stages of implementation : A) Micro processor based Intelligent lighting controllers for street lights and flood lights : Trial runs have been taken of the system at Vashi terminal and energy savings to the tune of 30% have been reported. Visakhapatnam . Rajamundr y. Vehicle Mounting Unit in each tank truck with GPS (Global Positioning System).Secunderabad Pipeline Pumps : Installation of Energy Saving systems for pipeline pumps at VVSPL locations. Contractor/Dealer supplied trucks are also proposed to be covered with the System. The system is under implementation in 69 Depots/Terminals all over India. The System is designed to generate Per formance of Trucks (POT) Reports on monthly basis apart from generating Distance. VEHICLE MANAGEMENT SYSTEM FOR TANK TRUCKS HPCL is first in the oil industry to introduce the Vehicle Management System for monitoring of tank truck movement from depots to retail outlets and back on real time basis to ensure delivery of correct quantity and quality of products to consumers and to improve overall operational efficiency. Route Travelled and Speed Reports on daily basis. GSM (Global System for Mobile) for data transfer and GIS (Geographical Information System) software for mapping of the supply locations. is under implementation for Lube Oil Pipe Line Operating Pumps at Mumbai. Vishakhapatnam. 2005. viz. 2006 in phases. The system envisages energy savings to the tune of 30%. ENERGY SAVING INITIATIVES : Ø Ø Lighting load : The system was commissioned at 71 locations and upto 20% savings in the energy consumption is reported. T/T Loading pumps : HPCL is first in oil industry in installing energy saving systems for product pumps and the systems are operative at 16 locations as of now with an expected energy saving of upto 30%. Vijayawada and Sur yapet have been completed and are under commissioning. Ø Ø 72 . The system is first of its kind in South Asia and being implemented for the first time. not only in the oil industr y but in whole of Indian industr y.Vijayawada . The system was successfully implemented in 15 company tank trucks during 2004 and is under implementation in 172 Company Owned tank trucks all over India which is expected to be completed by September. The system comprises of base station at loading location. 7.) 6..
73 . WZ-9. SZ-6) : Two locations in WZ and three in SZ are expecting certification during this year. 9. ISO CERTIFICATION FOR DEPOTS & TERMINALS ISO Certification was obtained by 41 locations (NZ-20. SECURITY LOCKING SYSTEM Security locking system has been implemented at all locations covering entire existing network. Loni Terminal : System consists of collecting vapour generated while filling the tank trucks and conver ting the Vapour to MS using either condensation or vapour absorption process. Ethanol being a byproduct of sugar industries. 10. Being oxygenated fuel. It has also been successfully introduced at HPCL-Wadala. ethanol enhances the combustion of petrol resulting in reduction in emission of all major pollutants. use of Ethanol will help the sugarcane growers. Recovery of MS from vapours is estimated at 1.Management Discussion & Analysis Report (Contd. The advantages of ethanol blended fuel are that it is a renewable and Biodegradable fuel and environment friendly alternative to fossil fuel. 8. The above mentioned initiatives are expected to result in savings of approximately Rs. D) Solar Photo Voltaic System at Vashi Terminal : 100 Kwp Solar Power Plant (3 x25 Kwp at Vashi W/Oil and 1 x 25 Kwp at Vashi B/Oil terminals) is under implementation to support the lighting load which include street Lights and flood Light Towers. Subsidy to the tune of 50% has been obtained from MoNES (Ministry of Non Conventional Energy Sources) through MEDA (Maharashtra Energy Development Agency). E) Vapour Recovery System. 6 crores per annum commencing from financial year 2005-06. ETHANOL DOPING SYSTEM 5% Ethanol Doped MS was introduced in 10 States in line with Government directives. EZ-6. Subsidy application made to MoNES is under active consideration by them.) C) Wind/Solar Hybrid Package at Loni Terminal : 15 KW Wind/Solar Hybrid Power Plant to support a connected Lighting load of 6 KW for a working period of 6 to 8 hours per day is being implemented at Loni terminal as a par t of Renewable Energy using. MARKER SYSTEM Marker Doping system to combat adulteration has been effectively implemented for MS/ HSD at Vashi and Shakurbasti Installations.7 litres per 1 KL of MS Loading. 11.
PUNE SOLAPUR PIPELINE PROJECT HPCL’s 161 Kms long Mumbai Pune Pipeline is being extended from Pune (Loni) to Solapur (Pakni) via Hazar wadi with a view to optimise the freight economics and to maximize utilization of Mumbai Pune Pipeline. The pipeline envisages 6 online pumping stations situated at Mundra. Solapur and Gulbarga will be catered.) ONGOING MAJOR PIPELINE PROJECTS 1. The approved cost of the project is Rs. this pipeline will feed four grassroot Marketing Terminals being constructed at Palanpur.75” dia cross country pipeline project from Loni to Pakni envisages new pumping stations at Vashi and Loni. Enroute. are envisaged from Bahadurgarh Terminal to HPCL’s proposed Marketing Terminal at Tikrikalan in Delhi. Rajasthan.84 crores and is scheduled to be completed in May. 2. MUNDRA DELHI PIPELINE PROJECT Mundra Delhi Pipeline project will be the longest multiproduct pipelines ever constructed in our country.8 MMTPA in Phase-II (2016-17). The existing Rewari Terminal will also be hooked up with the pipeline. It will be 1048 kms long. industry requirements in the districts of Kolhapur. This pipeline will meet HPCL’s market demand in the states of Gujarat. The approved cost of the project is Rs. Palanpur (in Gujarat). This 343 Kms long. 335.17 crores and is scheduled to be completed in September. Further.0 MMTPA in Phase-I (2012-13) and 5. 2007. 2006. On commissioning of the project. 74 .The pipeline has the capacity to carry multiple Grades of MS/ HSD and SKO from west coast to northen part of India. Uttranchal. three 12 kms spur lines. Santhalpur. The design capacity of Mumbai Pune Solapur pipeline will be 4. 1623. Awa. This will ensure uninterrupted supplies to the capital in abundance. one each for HSD. 14”/12. Ajmer and Jaipur (in Rajasthan). Delhi. Uttar Pradesh. Ajmer and Jaipur with road loading facilities and at Bahadurgarh with road/rail loading facilities.295 MMTPA. SKO and MS. 18”/16” dia cross country multi-product petroleum pipeline traversing through four states of the country starting from Mundra Port in Gujarat to Bahadurgarh in Haryana. Mundra Delhi Pipeline will form the critical link in meeting HPCL’s demands in north zone by transporting the surplus product available in West in the most reliable manner.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. and Madhya Pradesh. Haryana. In the years to come Mundra Delhi Pipeline will play the role of most important supply source to north India both for HPCL as well as other industry members. The design capacity of the pipeline is 5. tapoff facilities at HPCL’s existing IRDs at Hazarwadi and Pakni and construction of additional tankages. The project also envisages derating of Trombay-Vashi section of Mumbai Pune pipeline.
Secretary to Government of India. EIL. which resulted in raffinate yield of approximately 7580% and same was routed to FCC unit Shri S. test runs were conducted for low Sulphur feed stock in MR-FCCU and high Sulphur feed stock at CPCLFCCU.C. physico-chemical characterisation and analysis of Test Run samples was done by IIP and mass transfer studies on Glass Packed Extraction Column has been completed. EIL to implement the facilities. PFDs and P&IDs has been finalised in consultation with M/s. test runs were conducted in MR-PDA unit and relevant samples were analyzed by IIP. The raffinate so obtained would be superior quality FCCU feed stock and would result in better yields of Light and Middle distillates. resulting in an over all energy savings of about 20 to 40 per cent (mainly in utilities) and lower solvent losses. Tripathi. CPCL.Lal. 2 crores/annum. 2004. The same is expected to be implemented by 2006. The benefit expected from this project is approximately Rs.) RESEARCH & DEVELOPMENT (R&D) The Corporation has entered into MOU.Management Discussion & Analysis Report (Contd. MOP&NG. These include the following : a. IICT etc for undertaking collaborative R & D projects. C&MD b. Energy efficient Deasphalting process using supercritical solvent recovery (with IIP. inaugurating the R&D Centre at Vashi. seen in the picture is Shri M. 3 crores/annum. During the year. Site selection. During the year 2002-03 and 200304. The samples of side streams and residue were analysed by IIP. Subsequently. The project was initiated during 2002-03 and is scheduled to be completed by 2006.B. During 2004-05. a successful plant run was undertaken in Solvent Extraction Unit of Mumbai Refiner y during Februar y. CHT. with reputed institutions like IIP. as feed stock. Up-gradation of FCCU recycle oil through solvent extraction using NMP as solvent (with IIP. 75 . EIL & CHT) In the energy efficient super-critical approach the solvent recover y in the unit is done under supercritical process conditions. The benefit expected is approximately Rs. Also. EIL & CPCL) The project aims at extraction of aromatics from the FCCU feed using NMP as solvent.
IIT Kanpur and Advanced Refining Technologies for various R&D activities.) c. 365 crores of debt into equity and Rs. MRPL declared a maiden dividend of 10% for the financial year 2004-05. (MRPL) MRPL with a capacity of 3 MMTPA was commissioned in March. 76 . HPCL’s equity stands at 16. f. HPCL and MRPL have been exchanging intermediate process streams between their refineries to supplement efforts to meet new environmental norms in respect of products like MS and HSD on mutually agreed terms.2003 has been signed by HPCL with ONGC to take care of the interests of HPCL.160 crores of debt into ZCBs.2003. (HINCOL) The per formance of HINCOL. MOU has been signed between Chevron. e.03. HINCOL has been successfully marketing a wide range of value added Bitumen products like Modified Bitumen. meeting the requirements of road builders. 1996. Cut Back Bitumen etc. Consequent to the above. 600 crores into MRPL as additional equity on 30. Hindustan Colas Ltd.2000. The capacity was enhanced to 9 MMTPA during 1999 . d. a Joint Venture Company formed with Colas SA of France for producing and marketing Bitumen Emulsions continues to be encouraging. Improvement of Propylene Purity (With IICT Hyderabad) Proposal has been signed with IICT Hyderabad to improve the purity of Propylene through membrane separation. ONGC acquired the entire equity stake of IRIL in MRPL on 03.2003 and also infused Rs.95% after which a fresh Shareholder Agreement dated 03. sulphur and saturates in products is also expected by increasing severity of hydrofining and through usage of suitable catalyst.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. In addition to Bitumen Emulsions. JOINT VENTURES Mangalore Refinery & Petrochemicals Ltd. Improvement in colour. Optimisation studies of Hexane manufacturing unit & feasibility study for producing polymer-grade hexane (with IIP) Study has been initiated along with IIP during 2004-05 for optimizing the existing Hexane plant operating conditions to explore the possibility to produce WHO and Polymer grade Hexane.03. Optimisation studies of NMP Lube Extraction Unit (with IIP) Study has been initiated along with IIP during 2004-05 to optimise operating parameters to obtain specific product quality and thruput maximization. The FIs/Lenders of MRPL conver ted Rs. which have more stringent quality specification in respect of sulphur and benzene content.03.
333 crores and it is being financed through Debt-Equity of 2. 2006. Petronet CCK and Petronet VK which are operating companies. HINCOL now operates 6 plants geographically well positioned to meet the requirement of customers across India. The cost of the project is estimated to be Rs. (SALPG) This 50:50 Joint Venture Company between HPCL and Total Gas and Power India (a wholly owned subsidiar y of Total of France) formed in 1999 is currently setting up Underground Cavern storage of 60. 77 . viz. For the year 2004-05 a dividend of 15% has been paid.33:1.A section of emulsion plant South Asia LPG Co. Ltd.Bitumen Emulsion loading Hincol. PIL has initiated action to disinvest its equity holding in individual JVCs. (PIL) was formed in May. Pvt. Underground Cavern storages are the safest means of storing hydrocarbons and are being used by several developed countries. Since oil companies are now laying pipelines independently. This project is the first of its kind in South Asia and would facilitate import of LPG in large vessels resulting in savings in freight costs.) During the year. Petronet MHB. Vashi Plant . The project is expected to be completed by December.Management Discussion & Analysis Report (Contd. Petronet India Ltd.. Hincol. HINCOL commissioned 2 new plants at Visakhapatnam and Mangalore. Baroda . Special Purpose Vehicles (SPVs) were floated by PIL with oil companies for implementing individual pipe line projects. This JV has been declaring dividend for the last 6 financial years. (PIL) Petronet India Ltd. There are over 80 mined underground caverns in the world for LPG alone. The project will meet the requirement of a large storage for imported LPG in order to meet the increasing demand in Andhra Pradesh and neighbouring states.000 MT capacity and associated receiving and despatch facilities at Visakhapatnam. 1997 as a joint venture company with 50% equity by oil PSUs and balance 50% being taken by private companies/financial institutions.
the operational and financial viability of PMHBL have been af fected.. The Company has also farmed in 50% participating interest in the producing Sanganpur field from M/s. GSPC Ltd. Hirapur. Ltd. Due to lower thruput and pipeline tariff. Prize is currently carrying out further operations and expects to produce oil by the second quarter of the current financial year. Pvt. for participating in exploration and production of hydrocarbons. Ltd. Hassan and Bangalore. Khambel and West Bechrarji. The Company has also set-up the latest state-of-ar t geological data processing and interpretation system. The product pipeline from A view of Devangonthi Terminal Interphase tanks at Devangonthi Terminal Mangalore to Bangalore. 2004. Jubilant Enpro and Geoglobal Resources Ltd. with a tap off point at Hassan. has also been awarded ser vice contract for development of 3 marginal onshore fields of ONGC in Gujarat viz. Hydrocarbon Resources Development Co. Ltd.. 639 crores. Prize Petroleum in consortium with M/s. had formed this Joint Venture E&P Company viz. The restructuring of PMHBL is under progress. Prize Petroleum Co. along with Aban Lloyd Chiles Offshore Ltd. for the construction and operation of MangaloreHassan-Bangalore pipeline. (PMHBL) HPCL. ONGC has joined as a strategic partner in the Company by taking 23% equity. PIL and HPCL would each have 26% equity participation. in partnership with ICICI and HDFC. has been awarded the Block CB-ONN-2002/3 in the Cambay Area under NELP-IV bidding process. HPCL. The Production Sharing Contract for the same has been signed with the Government of India on February 6.) Petronet MHB Ltd... Ltd. Prize Petroleum Co. (PIL) has promoted Petronet MHB Ltd. along with Petronet India Ltd. Prize would sign the necessary Product Sharing Contract shortly. has been executed at a cost of Rs. 78 . The pipeline is meeting the transpor tation needs between Mangalore.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Prize Petroleum Co.
5% each of the equity while 5% would be held by Government of Andhra Pradesh and 50% by Strategic/Financial Investors. It proposes to commence CNG marketing in Vijaywada during 2005-06. 2005.Management Discussion & Analysis Report (Contd. processes and operations. INTERNAL CONTROL SYSTEMS : HPCL believes that a strong internal control is necessary for good Corporate Governance and freedom of management should be exercised within a framework of appropriate checks and balances.) Bhagyanagar Gas Ltd. technical and IT professionals having varied experience in their respective functional areas. in the state of Andhra Pradesh. The Internal Audit activity encompasses carrying out test check of all major locations. Bhagyanagar Gas Ltd. commercial and industrial sectors. HPCL and GAIL will hold 22. BGL has set up one Auto LPG Outlet at Tirupati Another Outlet of Bhagyanagar Gas Limited alongside and two Auto LPG Outlets at Hyderabad which Tirupati Hills are operational. compliance with Corporation’s policies and guidelines highlighting areas which would result in optimum utilisation of assets and financial resources. (BGL) has been formed as a Joint Venture Company by GAIL and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz. It has an independent Internal Audit Depar tment comprising of financial. 2003. BGL was incorporated on Bhagyanagar Gas Limited . Refineries. domestic. 79 . policies and guidelines covering various aspects of business. The construction of CNG Mother station/dispensing stations was completed on July 15. The focus of Internal Audit is to review the adequacy of internal controls. increase in profitability and operational excellence. CNG and Auto LPG for use in the transpor tation. The Corporation remains committed to ensuring an ef fective internal control environment that provides assurance on the efficiency of operations and security of assets. controlling offices and major operating functions on annual basis.. It has adequate internal control system commensurate with its size and nature of business and has well laid down documented manuals.LPG Dispensing facilities at Hyderabad August 22.
are given for follow up actions in line with the audit findings. Natural Gas : HPCL took the initial step for acquiring a stake in Shell’s Hazira LNG Project by carrying out a due diligence of the business. A pilot project of 25 MW is proposed to be set up either in Maharashtra or Karnataka during 2005-06. An MOU was also signed with GSPCL for marketing of CNG through the existing network of HPCL retail outlets in the state of Gujarat. the other initiatives on the gas business are : l l l A DFR is in preparation for setting up of LNG import/regassification terminal of 5 MMTPA at Mangalore/Mundra. l l 80 .53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Niko Resources/GSPCL for sourcing Natural Gas at Mora. Sun Petroleum has also expressed its interest to acquire equity stake in Prize Petroleum. Wind Power : HPCL has initiated steps to set up a Wind Power Generating Facility. A decision on the project is expected to be taken during the current financial year. Prize Petroleum along with Aban Lloyd has won the bid for development of three marginal fields in Gujarat owned by ONGC. Negotiations are in progress with M/s. The significant audit findings are reviewed by the top Management and Audit Committee and directions where necessar y. In addition to this. Prize Petroleum has also acquired a 50% stake in Sanganpur Oil fields in Gujarat. Rajasthan and Madhya Pradesh. MOUs with GSPCL : An MOU was signed with GSPCL aimed at mutual co-operation in the exploration and development of Oil and Gas fields and setting up a network of CNG stations in Gujarat. It also envisages HPCL participation in LNG facilities being put up by Shell at Hazira. BUSINESS DEVELOPMENT INITIATIVES MOU with Shell : An MOU was signed between HPCL and Shell to provide for products. Exploration & Production : l An MOU has been signed between Sun Petroleum and HPCL JV Prize Petroleum for copar tnering in NELP-V. An MOU is proposed with GAIL for setting up JVCs for distribution of city gas and CNG distribution facilities in Gujarat.) The Annual Audit Programme is reviewed and approved by Chairman & Managing Director and the Audit Committee of the Board. infrastructure and facility sharing between the two companies in India. Detailed feasibility report has been prepared for a 500 MW project.
It has also secured a 50% participating interest in the producing Sanganpur oil fields in Gujarat and has undertaken further development in the fields. Its consortium was recently awarded service contracts to develop three marginal onshore fields of ONGC in Gujarat viz. in consortium with GSPCL and others.. gathering of fresh 2D and 3D seismic data. HPCL made an initial foray in E&P activities by setting up a Joint Venture called Prize Petroleum Company Limited. Phase I reports have been received and are being reviewed. Various such oppor tunities are currently being reviewed. under the NELP-IV offering. in the Sultanate of Oman is being explored.) Global Diversification : l To identify global business opportunities. HPCL has initiated steps to venture into Exploration & Production sector through acquisition of equity oil by securing interest in E&P projects in India or abroad.Management Discussion & Analysis Report (Contd. Activities such as reprocessing the available seismic data. are currently in progress. geomagnetic surveys. FINANCE The working capital requirements of the Corporation has gone up mainly on account of high crude and product prices and pressure on market margins during the year.. 81 . Prize Petroleum also has won an onshore block in the Cambay Basin of Gujarat. geochemical sampling. The ONGC–HPCL consortium has secured two deepwater exploration blocks in the Kerala Konkan coast under NELP IV offering in 2003-04.. Khambel and West Bechrarji. HPCL targets to acquire at least 1/3 of its crude oil requirements as equity oil and has initiated various steps in this regard. HPCL would earmark required funds for expanding its E&P activities. Hirapur. HPCL is also exploring the feasibility of acquiring par ticipating interest in proven fields abroad. study of prospects in other countries is being carried out with the help of M/s. in association with suitable par tners including Oil India Ltd. The Corporation has par ticipated in the bidding process of the ongoing NELP-V. in association with financial institutions. The Corporation is also exploring the feasibility of associating with other major players in the E&P sector to further its efforts to enter the oil and gas segment. l EXPLORATION & PRODUCTION In its efforts to ensure security of supply and to improve the corporate profitability. analysis and interpretation of data to identify oil and gas prospects in these blocks etc. This JV has been reviewing various “farming–in” oppor tunities in the oil and gas sector both in India and abroad. It also extends technical assistance to HPCL in its E&P initiatives. Ernst & Young in phases. directly or jointly in association with other players. Requirement of funds have been met mainly by short term borrowings. Equity participation in Paraxylene Plant proposed to be put up by Oman Oil Co. to secure interest in the exploration blocks currently on offer.
Corporation has commenced Commodity Risk Management transactions. Steps are being taken to set up a full fledged commodity risk management desk to manage various kinds of commodity exposure. These include both the refineries at Mumbai and Visakh and almost the entire West Zone of Marketing Division.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. The Corporation is of fering fixed price contracts to customers by taxing appropriate hedge in international commodity market. With progressive implementation of Enterprise Resource Planning and increased implementation of core banking by major banks. Initial experience has been ver y encouraging. A major initiative to leverage ERP has been taken up by the Corporation. During the year 2004-05. a leading world class ERP solution. 2005 and approximately 85% of the Corporation’s sales by volume are being recorded in the system by 3300 users. However.98%. 2005. Training sessions in progress A scenic view of the Training Centre at Nigdi 82 . During the year 2004-05. Benefits in terms of better control over costs and standardization of processes are expected to be achieved on completion of the project. 335 locations have gone live in the new system. HUMAN RESOURCE DEVELOPMENT HR Depar tment is ensuring focus in enhancing the capabilities of the employees of the Corporation to rise up to the emerging challenges in the Oil Sector.) While average borrowings during the year have increased by 120%. interest cost has increased only 46%. A total of 261 locations have been covered as of March. The system has facilitated data integrity and availability of accurate information to enable timely decision making and has also ushered in significant level of transparency in the processes. As of June 30. Foreign Exchange Market has been volatile. The weighted average cost of borrowings during the year was 4. ENTERPRISE RESOURCE PLANNING (ERP) The Corporation had initiated a “Business Process Reengineering” exercise which was followed by the commencement of implementation of Enterprise Resource Planning system to support the core processes which is the JD Edwards OneWORLDTmXe. it has now become possible to implement e-banking. the Corporation took suitable steps to ensure that adverse impact is minimised by timely hedging/for ward cover products. Training and Development received continuous attention in our endeavour to be a Learning Organisation. Towards this end.
In order to take training closer to employees. Seen in the picture are Shri M. details of which are provided separately. Director . Discussion Forum etc. We have tried to make this portal very informative and user friendly. Other training programmes developed and conducted during the year were : l l l “MDP on Marketing” for Retail Regional Managers and Sales Officers “Retail Engineering” for Retail Engineers “Reach for the Skies” for Aviation Officers All India Annual Sports Meet held at Mumbai.Management Discussion & Analysis Report (Contd.B. Executive MBA : In order to enhance general management capabilities. Shri A.) An Organisational Transformation Exercise is currently in progress. a training por tal has been launched which ser ves as an inter face between the Training Department and employees. Self Nominations. Balakrishnan. E-Learning.HR and others A section of employees participating in the sports event Children at the Sports Meet l l l l “Marketing Operations” for Operations Stream “Modern Safety Management” for Officers in locations “Step towards meeting future Refiner y Challenges” for Refiner y Officers “Foreign Trade” for of ficers in Finance stream and SBUs 83 . Learning Centre. C&MD. Some important features of this portal are – Training Calendar. Training Histor y.Lal. Notices. officers are nominated for Executive MBA (EMBA) programme of the duration of 18 months which consists of oncampus learning of 9 days per quarter and offcampus learning.
53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Fourteen Level-1 scorecards have been designed and design of Level-2 scorecards is underway.) l l l “Risk Management and Derivatives” for officers in Finance and Direct Sales “Linux” for officers in IT stream “Networking Basic” for officers in IT Stream All the above programmes have been customised to meet the Corporation’s needs. have also been availed for conduct of such programmes. 14 projects have been identified and work on the projects are concurrently underway. Six Sigma : To bring about quality improvement in business process. Corporate Scorecards have been designed and formulated. HPCL has initiated the process of Competency Mapping for aligning employee competencies to the business strategies and build framework for both Behavioural and Technical competencies. This new facility is expected to 84 . customer needs etc. As a part of this initiative. Indian School of Petroleum etc. Services of reputed institutions like IIM-Ahmedabad. Achieving Continuous Excellence : Thrust on upgrading skill of employees to deliver superior performance continued during the year through project “ACE” (Achieving Continuous Excellence) and Leadership development programmes. This has helped in implementation of ERP and other Organisational Transformation process in a streamlined manner. As a part of this exercise. 207 officers have undergone competency assessments and their individual development plans are being implemented. Accelerated Management Programme etc. Officers have also been sent for various external and foreign training programmes like Advanced Management Program. NCCB. Other Significant Initiatives : Balanced Scorecard : To enable translation of strategy into operational objectives and to align the activities in line with core vision of the Organisation. conducted by reputed institutions. A series of Change Management Programmes were conducted for the internal Union Leaders and approximately 150 Union Leaders have been exposed to the changing business environment. During the year the Behavioural and Technical competency frameworks have been developed along with 100% position profiling. HPCL has embarked on the Balanced Scorecard initiative. A total 93 ACE Workshops and 53 LO Workshops have so far been conducted on cumulative basis. Employees Relations Committee : A new Management Employees Relations Committee has been set up to provide the officers an easily accessible machinery for settlement of grievances.. Competency Mapping : To strengthen the competencies of our employees to meet the challenges of continuous change. Six Sigma approach is being institutionalised in the Corporation.
Several Memorandum of Understanding (MOUs) were signed during the year with Unions at different locations concerning different segment of activities of the Corporation.03.2002 31. INDUSTRIAL RELATIONS : The Industrial Relations climate for the financial year April 2004 to March 2005.2003 31. the overall Industrial Relations scenario witnessed active cooperation from the employees which in turn enhanced the productivity and strengthened industrial peace. This has resulted in streamlined functioning of activities in these locations in a cordial work atmosphere and inter-personal relations.2005 No. 9 LO workshops for Union Leaders and 36 LO workshops covering the clerical/ secretarial staff were conducted across the Corporation. Mumbai Refiner y and Visakh Refinery and there was no loss of production. 1 LO workshop for MSA CEC Members. productivity and efficiency in the Organisation.03.03.03. of NonManagement Employees 7935 7786 7630 7494 6999 Total Strength 11549 11357 11213 11088 10561 RECRUITMENT OF LAST 5 YEARS : Year-wise Recruitment 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 Recruitment of Officers 27 38 27 63 80 Recruitment of Non-Management 66 41 11 1 6 Total Recruitment 93 79 38 64 86 85 . Due to our endeavour and the positive approach of the Unions.03.2001 31.2004 31. MANPOWER DATA The manpower statistics of our Corporation for the past 5 years is as under : Year-wise Manpower as on 31. 6 LO workshops for HR Officers. During the year 2004-05. continued to be generally harmonious in all units of Marketing Division. PROACTIVE IR Learning Organisation (LO) workshop covers individual development as well as team learning skills. of Management Employees 3614 3571 3583 3594 3562 No.Management Discussion & Analysis Report (Contd.) enable expeditious settlement of grievances leading to increased levels of satisfaction.
The said activities include Primar y/Secondar y/Graduation and Post-Graduation education. 10561 2941 127 639 665 2 86 . augmentation of drinking water facilities. HPCL was nominated as the Coordinator. Scholarships to students of SC/ST/Weaker Sections including students with disabilities and provision of computer training to the poor and needy students from the SC/ST/Weaker Sections of Society. health care. income generating schemes. particularly LPG. rehabilitation of Persons With Disabilities (PWD). Study Tour of the Standing Committee on Petroleum & Natural Gas visited to Visakhapatnam to review the CSR activities of ONGC. Out of a total of 1325 New Retail Outlets and LPG distributorships commissioned during the year. Visits of Parliamentary Committees & Member of National Commission for SC/ST : During October 16-18. 105 were allotted to SC/ST category and 53 were allotted to Persons With Disabilities (PWD) categor y.03. Details are given separately. The Hon’ble Member of National Commission for ST visited at Chennai to review the implementation of reservation policy. During the year 2004-2005.2005) Total Strength SC/ST Physically Handicapped Ex-Ser vicemen Women Employees Spor tsmen WELFARE The overall representation of SC/ST employees in the Corporation is 27. family welfare. This was primarily due to the fact that there was substantial increase in the crude oil prices which were not matched by corresponding increase in product prices. 5. 2004.OPPORTUNITIES & THREATS : The Oil and Gas Sector is continuing to witness a turbulent phase. OFFICIAL LANGUAGE IMPLEMENTATION : Progressive use of Hindi in the Corporation continues to receive due importance.) Break-up of Employees (As of 31.85%. The downstream companies like HPCL which are primarily engaged in refining crude and marketing of petroleum products are experiencing continued pressure on margins which was reflected by a fall in net profit for the year 2004-05. vocational training. THE FUTURE . our Corporation has carried out a number of Welfare/Developmental activities at various locations inhabited by SC/ST/Weaker Sections in the vicinity of operating business locations and Refineries at Mumbai and Visakhapatnam at a total cost of over Rs. MS and Diesel. GAIL and HPCL.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. Kerosene.30 Crores.
improving the yield of value added products through process improvements in the Refineries and stabilising the impact of price fluctuations through oil price risk management have been the main focus areas during the year. 87 . strengthening of downstream infrastructure. The initiatives of the Corporation in the area the highway segment etc. retail automation and dynamic pricing. are Inauguration of the Petrotech stall 2005 by Shri Eduardo Lopez Robayo. The objective therefore is not only to protect the existing volume but also identify new areas of growth.Management Discussion & Analysis Report (Contd. Seen in the picture are Hon'ble Minister of Petroleum & Natural Gas and Panchayati Raj. Securing equity oil by foraying into exploration and production.) The crude oil prices which moved from approx $32/bbl in March 2004 to $49. Improving unit service factors. marketing of eco friendly gaseous fuels. etc. using risk management tools. C&MD of allied retail business. leveraging ‘state-of-the-ar t’ IT and communication technology. Hon'ble Minister of Energy & Mines.B. Non conventional Energy areas. Cost control and cost reduction measures are continuous areas of our focused attention.Lal. improve refinery GRMs etc.3/bbl in March 2005 is likely to remain at higher levels. penetration of rural market. develop risk management capabilities. the Corporation has been taking many initiatives oriented towards value additions and operational improvements in its core lines of refining and marketing. are some other initiatives that the Corporation is considering in pursuit of its future growth. Gas . we are also trying to enhance the supply side infrastructure through projects such as Mundra-Delhi Pipelines and Loni-Solapur Pipelines. focus on all aimed towards this purpose. optimize value chain. WAY FORWARD : In order to mitigate the impact of negative margins on the main product lines. Equador. Shri Mani Shankar Aiyar & Shri M. The Marketing segment continues to witness intense competition not only between down stream companies but also from private and foreign companies which have already initiated their entr y and also from upstream companies who want to enter the retail segment. etc. The Corporation is also pursuing options for entr y in upstream segments like Exploration and Production. In addition. It is in this context that your Corporation is giving utmost thrust to integrate refining and supply operations. Further setting up of SBM for receipt of crude through VLCC at a suitable location is also being explored.
Power. The Corporation on its par t would be required not only to ensure supply sources of CNG/LNG but also the infrastructures required for supply of the same to its existing customers. this increase in domestic production will not be sufficient and there will be need to source gas from outside to bridge the supply gap. Mundra – Delhi Pipeline Project – Rs. 88 .) Potential areas such as optimising the crude procurement costs. optimising the product distribution and transportation costs. A number of new gas finds have been announced and these will certainly enhance domestic supply in the medium term. The demand for gas is set to grow substantially over the next ten years. It is in this context that the Corporation is continuing to pursue tie-ups/Joint Venture arrangements with reputed companies both Indian and foreign. not only to sustain economic growth. steps for savings in financing and operating costs etc. The major projects under implementation are Green Fuels and Emission Control Project in Mumbai Refiner y Rs. However. Clean Fuels Project at Visakh Refinery – Rs. The actual per formance could var y from those projected or implied. Extension of Mumbai – Pune Pipeline to Hazarwadi at a cost of Rs. and other incidental factors. 1635 crores. CAUTIONARY STATEMENT : Matters covered in the Management Discussion and Analysis describing the Company’s objectives. expectations may be “forward looking statements” within the meaning of applicable securities. setting up of infrastructure in Marketing/Refining area. but also on account of the high price of liquid fuels which is encouraging customers to switch to gas. 335 crores. enhancement of the energy efficiencies. This is important as otherwise its customers base could move out to other supply points.53rd Annual Report 2004-05 Management Discussion & Analysis Report (Contd. The proposed capital expenditure also includes outlays towards investments in Joint Ventures and Subsidiary Company for E&P initiatives and for modernisation and upgradation of marketing infrastructure.. 1152 crores. estimates. The Corporation is also gearing up to meet the demand of the market for both LNG and CNG by firming up arrangements for receipt of gas as well as for supply of gas to both retail and industrial customers. receive focused attention resulting in savings to the Corporation. 1624 crores. laws and regulations. 11000 crores to be incurred in phases during the next 3 to 4 years. Exploration & Production. changes in regulations. The Corporation’s expansion and diversification plans would involve a capital expenditure of Rs. This is also beneficial to the environment as seen after the introduction of CNG in both Delhi and Mumbai. projections. to pursue initiatives in segments like Gas. Impor tant or unforeseen factors that could make a dif ference to the Company’s operations include economic conditions affecting demand/ supply and price conditions in the domestic market in which the Company predominantly operates. HR department is laying greater focus in enhancing the core competencies and capabilities of employees to rise up to the challenges and enable the Corporation to carve a niche for itself in the Oil Sector.
The Corporation could continue to face pressures on margins. The various initiatives that have been highlighted would provide the platform to the Corporation to chart its activities aligned to its Corporation Vision.Lal. Shankar. The Corporation with its strong fundamentals and growth plans is confident of meeting the challenges ahead and live up to the expectations of all segments of its Stakeholders.) The road ahead is challenging. Central Vigilance Commissioner addressing at the Interactive session with the Functional Directors & Senior Officers of the Corporation. Central Vigilance Commissioner 89 .Management Discussion & Analysis Report (Contd. The scenario calls for action plans not only to sustain in current position but also to look for avenues to sustain the growth and development. seen in the picture is Shri M. Also. C&MD Functional Directors & Senior Officers of the Corporation at the Interactive session with Shri P. Shri P.B. Shankar.
Pride and Camraderie within the organisation. Dreams that chart The course of our future. Set up infrastructure with “state of the art” facilities. endeavour for global standards in operations. Looking beyond the obvious. Function in harmony with Environment and the Society. Earn the trust of all sections with whom the Company operates for an enduring relationship aimed at mutual benefit. Raising the bar. Ensure highest standards of Safety in all our operations. Produce Quality products and services to meet the stated and latent needs of customers. That’s the HP way 90 . Ensure highest standards of maintenance to ensure reliability of plants/units and enhance MTBF (Mean Time Between Failures). Courting the impossible. Be a learning organization with constant measures to upgrade skills and competencies to respond to the ever changing market scenario. Be known for highest standards of Ethics and Transparency in operations.53rd Annual Report 2004-05 Special Focus Areas HPCL’S CONSTANT ENDEAVOUR l l l l l l Aim for sustained Growth and Productivity to reward consistently our shareholders and stakeholders. l l l l Setting goals. Creating an environment of Trust.
HPCL has provided uniforms to more than 60000 students. HPCL has also been facilitating running of a burns/trauma care hospital at Chembur called ‘Sushrut Hospital’. school furniture. is looked upon by many companies as a balancing act between nature on the one hand and stakeholders on the other. HPCL has always endeavoured to discharge its social responsibility by undertaking wide ranging activities across the country. agro based training etc.23 crores have been spent on various welfare activities. HPCL was one of the first to adopt eco-friendly technologies such as changeover from Phenol to NMP solvent in three lube extraction units and changeover from Oleum to NMP in the Hexane Treating Plant. being environmentally friendly. arising more out of compulsions than passion to protect environment. HPCL has also provided supplementing tools to earn a decent livelihood. drinking water facilities. health. HPCL has contributed around Rs. eye and gyanec camps. The value of ‘growing green’ i. To support the income generation avenues for the needy rural population. But research reports indicate that investments in environment improvement measures lead to noticeable improvement in the Company’s stock trading and the stakeholders confidence. l l 91 . driving. HPCL has provided 21 ambulances/mobile vans to various service societies and associations. l Bore-wells with hand pumps have been installed in about 265 locations in many parts of the country to mitigate the problems on the drinking water front. vocational training. These initiatives have been widely appreciated and have won for HPCL some national and international awards/citations. Scholarships have been awarded to about 4000 students of various colleges for graduation and post-graduation studies. constructed/renovated 34 school buildings. this hospital has been set up specially to take care of any emergencies arising out of industrial accidents. distributed note books. children and physically challenged persons. 4 hostel buildings and around 90 numbers of class rooms in various parts of the country and also provided 7 school buses in Arunachal Pradesh and Mizoram. rural development etc. apart from organizing vocational training in tailoring. HPCL has progressively scaled up activities on the CSR front quite by allocating significant resources in this regard. Corporate Social Responsibility is an integral part of Corporate Governance and is assuming a significant role for the corporates in their activities.e.Special Focus Areas (Contd. sanitation. that not only provide basic needs of living but also encourage people to become self reliant. l On the health care front besides organizing medical. The focus of activities has been to improve the standard of living of weaker sections of the society including women. HPCL developmental programmes centre round critical areas like education.) CORPORATE SOCIAL RESPONSIBILITY The two biggest challenges confronting the humankind today is Poverty and Pollution. In the last four to five years (2000-2005) nearly Rs. stenography.20 crores towards the corpus fund of this hospital. Being located in a highly industrialized zone of Mumbai (Chembur) with many industries handling volatile and hazardous products. We have given below details of some significant CSR initiatives of the Corporation : l On the primary education front.
A sum of Rs. On the environmental front. Similarly in our Visakh refinery the ongoing Flue Gas Degenerate (FGD) projects when completed will bring all the SO2 emissions within norms as also MINAS to ETP modifications.10 crores have been earmarked for the current year. energy and cost of rural customers. HPCL should be able to find a permanent and viable solution to the sludge problem. HPCL introduced the first of its kind in the industry in Maharashtra. it is essential that environmental norms are fully complied. the Corporation has rolled out a number of initiatives like quality control mobile laboratories. To develop a sustainable and environmentally sound strategy for long term management of hazardous solid wastes. The other parallel strategy is to employ a suitable technology that can process the already accumulated sludge in a central facility. Towards this objective. 92 . For handling the crude oil sludge. All the efforts are towards HPCL being recognised as a “SHE” focused organization. We have also undertaken ground water analysis for an assessment of water sampling and steps for covering all possible sources of contamination. l l l l l l l INITIATIVES FOR RURAL POOR l Earlier people in the rural areas had to cover long distances to source their fuel requirements. distribution and marketing. emissions measurement and control.53rd Annual Report 2004-05 Special Focus Areas (Contd. on the liquid effluents we have taken necessary steps for Effluent Treatment Plant (ETP) integration for meeting the MINAS (Minimum National Standards) norms. HPCL is meeting all the gaseous emission norms at Mumbai refinery. external audits through independent agencies and e-fuel stations by way of retail automation.149 crores have been spent on “SHE” related matters and Rs. Continuous efforts are made for improving the SHE awareness among employees and contractors through training and field observations and clearly defining the safety responsibilities/accountabilities. refining. Projects for potential rain water harvesting are under development. HPCL has pioneered the novel concept of “Mobile retail outlets”. a two pronged strategy has been planned – One to develop a methodology for treating the sludge ‘in-situ’ so that untreated sludge inventory does not build up. Our environment training modules are developed on core aspects such as statutory requirements.) CORPORATE SOCIAL RESPONSIBILITY (Contd. The Corporation has set up an independent Department to handle Safety.4600 crores have been made/being committed in various Projects that reduce the sulphur emissions from the refineries as well as in projects for producing transportation fuels for meeting the environmental norms and other emission standards. solid waste management and environmental audits. Health and Environment (SHE) related activities. to supply the products nearest to the point of consumption thereby saving time. HPCL has entered into a tripartite agreement with national and international companies for preparing an “Integrated Hazardous Solid Waste Management Plan”.) l Being in an industry handling highly inflammable products. Thus over a period of time. In the marketing operations the focus is towards “total customer and vehicle care” by providing quality product and value added services. Investments of over Rs.
serious health hazards are also posed. insurance coverage in the event of any accidents are all oriented towards safety and welfare of customers. This unique initiative of ours has won laurels and has made a deep impact in the rural segment wherever it has been introduced. required for the agriculturists. Our uninterrupted supply of cooking gas in J&K. We provide cooking facilities such as stoves. Substantial time is spent on collecting these basic fuel needs. LPG as a cooking fuel is yet to reach many portions of rural India. utensils as also the LPG connections in a common place provided by Village Panchayat and operated through self help groups. safety awareness programmes.B. Moreover. which cater not only to fuel requirements but also on fertilizers. firewood etc. So HPCL thought of providing cooking facilities at an affordable cost and thus emerged the “Rasoi Ghar” concept (community kitchen initiative). where HPCL market share is about 70% during the recent heavy snowfall has been well appreciated.Special Focus Areas (Contd. for a nominal sum. C&MD addressing the delegates at the National Seminar on Governance l HPCL has also put up Kisan Vikas Kendras. This facility has been found extremely convenient by the rural women and we are extending the same to other places and also to hospitals and Schools' midday meal schemes. Most of the rural population in India meet their cooking fuel needs by other sources such as coal. to connect the LPG cylinder with the stove. The introduction of ‘Suraksha’ tube. HPCL will always strive to be a role model on the CSR front and would look CSR initiatives not from the point of view of statutory compliance but rather as a process to meet the obligations to the Society. l l l Our CSR activities are also reaching the remote areas of the country and regions like Jammu and Kashmir which have extreme climatic conditions. We touch more than 20 million households by providing cooking gas and our LPG Business Line saw a role for us in CSR front. quality seeds etc. due to the smoke and other forms of emissions in the conventional cooking. Lal.) Visakh Refinery Shri M. pesticides. 93 .) CORPORATE SOCIAL RESPONSIBILITY (Contd.
Six other marketing locations are preparing for ISRS Safety Audit. • HPCL has been adopting ECO-friendly technologies such as changeover from phenol to NMP solvent and changeover from Oleum to NMP. a detailed SHE performance improvement/benchmarking study is being undertaken by the globally reputed SHE consultant. as per their ISRS protocol. We have ensured that increasing scales of operation do not conflict with protecting safety and health and safeguarding environment.53rd Annual Report 2004-05 Special Focus Areas (Contd. These initiatives have been widely appreciated and have won for HPCL various national. VR and MLIF have been audited by DNV. international awards/citations. Diesel Desulphurisation facilities are fully operational in both the refineries. HPCL is committed to maintaining high standards of safety. and have been rated at level 8 (for MR & VR) and level 7 (for MLIF). HEALTH & ENVIRONMENT CARE • As a socially responsible Corporate citizen. we have expanded the manufacturing and marketing operations in tune with national needs. • The safety management systems of MR. Without losing sight of our long term goal of reducing occupational injuries. As a part of Green fuels and Emission Control project. • HPCL has well-equipped health care facilities/arrangements at all major locations. • Drastic reduction in SO2 emissions have been achieved in both the Refineries inspite of the significant increase in crude thruput. operational incidents and environmental releases. • SHE Department is in the process of undertaking the following initiatives : • To enhance SHE management framework. • Mumbai Refinery has already commenced production/supply of BIS-II MS/HSD and EURO-III HSD from 1st January 2005 and 1st week of May 2005 respectively. • • Achieving ISO-14001 accreditation for our marketing terminals. • Create awareness and provide training to the officers for developing in-house “Environmental Auditing” capabilities of operating locations.2800 crores for its “Green Fuels Projects” in both the refineries to meet the MS/HSD of EURO-III grade in Metro/Mega cities and Bharat stage-II grade in the rest of the country.) SAFETY. health and environmental care. Adjudge different operating locations as per a newly developed SHE Index criteria consisting of various evaluation parameters. Flue Gas Desulfurisation Unit (Wet Gas Scrubber) is being put up in FCCU unit for further reducing the SO2 emission and Particulate Matter in both the Refineries at Mumbai and Visakh. 94 . Project for EURO-III MS is under implementation. Occupational health is a focus area for HPCL and all issues pertaining to occupational health are addressed comprehensively. • HPCL has undertaken projects worth about Rs.
Special Focus Areas
SAFETY, HEALTH & ENVIRONMENT CARE (Contd.) • The Refineries have also taken initiative for treating the tank sludge in an environmental friendly manner without removal of the sludge from tank and with reduced tank down time. In this direction, in-situ cleaning by M/s. Balmer Lawrie & Co. Ltd. using BLABO technology has been started in Crude Tank for recovering maximum oil from the sludge. • Over 75% of the petroleum products from the refineries are being evacuated through pipelines. Dependence on road transport for evacuation of products has been reduced drastically, resulting in considerable reduction in auto emissions to atmosphere. • Extensive green coverage has been provided in and around the refineries and housing colonies, Housing colony at Mumbai has received the awards from “The Friends of Trees association for Greenery”. • The Environment Management System of the Refineries, the Silvasa Lube Plant, Ajmer LPG Plant, Kota LPG Plant, Loni LPG Plant and Manglore LPG Import Facilities, have been audited and awarded accreditation under ISO – 14001. Other three LPG plants at Gumdipundi, Madurai and Palghat have been audited for ISO – 14001 and auditors have recommended for accreditation. • The Corporation has won several awards on Safety that have been listed under the segment ‘Awards/ Recognition’.
53rd Annual Report 2004-05
Special Focus Areas
ENTERPRISE RESOURCES PLANNING (ERP)
Background With a view to leverage the Information Technology for the benefit of business, an Enterprise Resource Planning system (ERP) is currently under implementation and called as Project Parivartan which is JD Edwards OneWorldTMXe, a leading world class ERP solution. The implementation covers all the modules of the ERP software viz. Sales & Distribution, Manufacturing, Finance and HR to support the core business processes. The system when completed and rolled out at all locations would effectively manage the information needs of your Corporation. The system would provide the decision makers on-line and accurate information that would aid them in taking timely business decisions. Tracking of cost of operations would become easy with the implementation of this system. Standardisation of various business processes would result in better management control. The first phase of the project was to implement the solution at 14 pilot sites so chosen as to represent all types of HPCL locations. This has been followed by roll out across all other locations of the Corporation. Status of Implementation The ERP implementation which aims to cover more than 400 locations was started from the West Zone in August 2003 and has since progressed to the South Zone in March 2004, and subsequently to North Zone from October 2004. During the year, ERP has been implemented at a total of 170 locations covering more than 50% of Corporation’s business. As of April 2005, ERP implementation has been completed at 261 locations which include both the refineries at Mumbai and Visakh and almost the entire West, South and North Zones. Approximately 85% of HPCL sales are being recorded in the new system as of date. The JD Edwards system has been interfaced with the Computerised Materials Management System (CMMS) system (Maximo) at both Mumbai and Visakh refineries. This interface enables two-way flow of data related to purchase activities, warehouse issues etc. between the two systems. The interface has been configured to enable optimum utilisation of the functionalities available in both the systems to the maximum. Customised modules have been developed internally for Employee Compensation and Benefits and Employee Payroll. These modules have been integrated with the core HR and Finance modules of the JD Edwards software. The modules have been implemented at Mumbai Refinery and West Zone and are being rolled out at other locations. These modules would help achieve enhanced employee satisfaction in view of smooth and standardised implementation of HR policies. A Change Management Programme facilitates a smooth transition for the employees using appropriate Communication and Training strategies. Communication to the user groups is maintained using all available channels including an intranet website. Comprehensive training is impar ted to the users during the implementation at any site. This is followed by refresher courses of 2-3 months post implementation. Additional training programmes are also arranged from time to time for focussed training to specific user groups such as
Special Focus Areas
ENTERPRISE RESOURCES PLANNING (ERP) (Contd.) Regional Managers, Finance functionaries, location in-charges, clerical staff, etc. To foster a culture of maximising user contribution to the implementation, a competition was established among the pilot locations for the best implementation. Similar competitions during the roll out phase are continuing. A ‘state-of-the-art’ data centre in the Head Office at Mumbai hosts powerful IBM enterprise servers, which manage the entire data and applications in a centralised architecture. The connectivity to the locations has been established by using various available communication channels such as leased lines, VSATs, ISDN, VPN, radio links and dial-ups. A separate Disaster Recovery Centre (DRC) is being set up in Hyderabad for providing a back-up in the event of any physical contingency at the primary site. This DRC would mirror the main server and would be in a position to take over in case of any disaster at the primary site as well as to enable any maintenance shutdown to the server. New initiatives in Parivartan Various new initiatives have been implemented which build on the information available on a real-time basis from the ERP system and sustained efforts continue to bring in more of these to reality. In keeping with the Corporation‘s focus on enhancing Customer satisfaction, a dedicated portal has been designed to display the information related to despatch details and statement of accounts of a customer. This portal also gives details of sales for the last 3 years. A customer logs in through internet using a secure user -id and password. The portal has been launched for Retail, LPG and Aviation business and would be made available shortly for the Corporation’s major industrial customers as well. HPCL’s dealers and distributors are getting the information by SMS and e-mail on the loads sent to them, once ERP system has been implemented at the despatch location. This information is sent to them immediately on printing the invoice and is a big help in enabling them to keep track of their indents. MIS report delivery by e-mail to senior management, field officers, document archival system for critical documents like invoices, purchase orders, cheques, etc., electronic data transmission to a foreign airline on sales are some of the other initiatives that have already been implemented. New areas where the on-line availability of information can be harnessed to provide improved customer service, as also provide visibility to other stakeholders are being explored on an on- going basis. The project will be fully rolled out by March 2006 .
53rd Annual Report 2004-05
Special Focus Areas
PROJECT ORGANISATIONAL TRANSFORMATION
The process of organizational transformation which commenced about two years back has sown the seeds for making HPCL a "Learning Organization”. More than 25% of employees of the Company have so far participated directly in the various workshops being conducted as a part of transformation process. They have experienced the power and value of co-creating a shared vision for the corporation. Employees who participate in the workshops have ‘learnt’ that learning is beyond acquiring information and knowledge. They have understood that a Learning Organization is where people are continually enhancing their capabilities to create the results they truly desire, where individual and collective aspirations are set free, where new and expansive thoughts are nurtured, and where they are continually learning how to learn together. Like any growing body of knowledge, there is a ‘disciplined’ approach towards building a Learning Organization. It is not possible to create an inspired organization capable of producing sustained high performance overnight. It is the rigorous application of the principles and practices of five disciplines of the learning organization by all its members that brings into being a learning organization. With the visions leading the teams and a sense of ownership to the vision prevailing, people in HPCL sense a feeling of empowerment and commitment like never before. Short term focus has today given way to sustainable value creation process. Today, people at all levels in the organization are committed to customer delight that not only allows them to be true to themselves but also to the organization. As people have more and more control on their jobs, they feel higher and higher responsibility for the outcomes. Shared and co-created visions in the teams has enabled emergence of higher accountability in teams for achieving results leading to improved results in all our business units in terms of risk taking, innovations and commitment. The trust imperative in an organization is the basis for outstanding business results. The process of building trust starts when there is intense open and reflective discussions in teams and they create their own future. The process has made the teams redefine their relationship with other stakeholders resulting in a higher degree of trust with them. Distributed and disaggregated leadership is a prerequisite to teams achieving excellence. Leadership skill building therefore at all critical levels in the business has become an immediate priority for the organization. The middle management members who are involved in leading unit level business teams at the Regional Offices were first involved in the process of leadership skill building. Leadership Development Workshops were conducted for the Regional Managers where they discovered the value of alignment, teamwork, customer focus. They also learned the importance of continually challenging Director-HR and Project Organisation Transformation team members with the Management Guru Mr. Peter Senge, author existing mindsets in order to avoid being prisoners of
of the book "Fifth Discipline"
etc. that the people in HPCL will have. Leadership is the ability to see the big picture and think systemically and holistically. The connectivity between happy and motivated workforce and delighted customers and higher profitability is often understood but not frequently paid attention to.Special Focus Areas (Contd. In HPCL. and leading consultants from all over the globe immensely benefited the development of coaches. The interactions with leading practitioners from world over. the higher is the sense of achievement. In fact the effort does not end with the workshops. interdependencies and the primacy of team working were successfully implemented by the coaches in the workshops. A team of six internal coaches headed by Director HR attended the 7th Annual Meet of Society for Organizational Learning at Boston. The more the challenges.) PROJECT ORGANISATIONAL TRANSFORMATION (Contd.) their own thinking. The value of conversing meaningfully to understand the import of significant issues by leveraging collective thinking was explored with the help of dialogue process. There are boundless opportunities and endless possibilities with the Organizational Transformation. we have done just that by capacity building in leadership workshops. The participants in the leadership workshop understood the advantage of collective thinking replacing individual myopias. The path is difficult. academicians from institutes like MIT Boston. Leadership thus could become community phenomena instead of individual aggressiveness. since we have decided the future we want to create for ourselves. Many of the ideas of connectivity. Enabling structures are being put up to see that what is learnt at the workshops is implemented at the workplace. but the future is certain. Participants at the Leadership Self Development Programme held at Nigdi with C&MD and Functional Directors 99 . Shared understanding and decision making is also resulting in people finding meaning in their work and collective achievement resulting in fulfilling individual aspirations also.
) OFFICIAL LANGUAGE IMPLEMENTATION 2004-2005 Progressive use of Hindi in the Corporation continues to receive due importance. 100 . Various competitions were organised by the member Organisation under the banner of TOLIC.53rd Annual Report 2004-05 Special Focus Areas (Contd. An All India Competition in Hindi . During the year “Hindi Pakhwada” (Fortnight) was celebrated from September 6 to September 20. 3. To further enhance the vocabulary and knowledge of Rajbhasha amongst the employees and encourage the hidden talents. 4. 2004. various competitions like essay-writing. Workshops and conferences for the officers/clerical staff to encourage the employees for implementation of Rajbhasha as also to update and rejuvenate their capabilities in Rajbhasha. 6. 5. Besides. Eminent personalities dedicated towards propagation of Hindi were invited as judges. The progress of member Organisations is reviewed as also members share views on effective implementation for each others benefit during these meetings. East Zone received an award from Official Language Implementation Department while South Zone also received an award from TOLIC for Official Language Implementation. The Corporation continues to head TOLIC in Mumbai for Public Enterprises/Organisations. group discussions etc. “CHAUPALS” were conducted under the banner of TOLIC at the offices of various member Organisations. Efforts in the direction of associating Rajbhasha with productivity of the various Strategic Business Units of the Organisation have been given a further momentum. Hindustan Petroleum Corporation Limited Rajbhasha Vision 2006 was prepared at the ACE (Achieving Continuous Excellence) programme. Hindi Utsav at various places. lectures on Hindi Implementation by renowned personalities in the field have motivated employees in more usage of Hindi. letter writing. 2. Kavi Sammelan. were organised. elocution.‘Interesting/ Inspiring Memorable incident’ was organised for all employees. Various activities were carried out during the year such as : 1. All India Rajbhasha Sammelan was organised at Visakhapatnam. Bilingual Computer training programmes. The Sub-Committee of the Parliament Committee on Official Language inspected various places. The SubCommittee appreciated the work done in Hindi by the Corporation. ‘Rajbhasha Gyan Prashnavali’ Competition was held for all Mumbai based employees to create awareness about Rajbhasha Implementation. 7. Half yearly meetings were organised as per schedule.
Srinagar to ensure cooking of hygienic food at affordable prices for the relatives of patients who normally accompany the patient. HPCL would endeavour to promote the scheme further for the benefit of wider spectrum of the society and in particular the weaker section of the society. It provides the villagers with a ready to cook facility that eliminates the cost of one time deposit as well as the recurring refill cost as they are required to pay basis the usage time only.000 people. temporary Rasoi Ghars were also set up at all major rural melas such as Pushkar.Special Focus Areas (Contd.) RASOI GHAR l HP GAS pioneered the launch of the Rasoi Ghar concept for providing lower strata of the society with cheap and alternate fuel for cooking at affordable price.. Some of the important locations covered are AIIMS. King George Hospital. Further the concept has also been widely covered by several dailies. In a pilot project undertaken in the Yavatmal district of Maharashtra. These Rasoi Ghars also help in meeting the aspirations of rural population who could not af ford to have an LPG connection on their own. or community kitchen has been appreciated by all sections of society including voluntary organizations and women groups. periodicals and magazines. Mumbai and Lal Ded. It resulted in savings of nearly 36. firewood etc. NDTV Profit Channel has done a special feature covering the complete concept and operations. HPCL has been awarded the prestigious ‘Golden Peacock Award’ for eco innovation and has also been awarded the ‘National Excellence Award for Innovative Techniques’ for improving access of a modern fuel to Rural Women. for heating with associated health and environmental hazards. Restricting felling of trees and protecting environment thereon has been another key benefit from these Rasoi Ghars. 101 . For this innovative concept. Appreciating this novel initiative. Sonpur. Visakh. Further. to benefit pilgrims and floating population and at the same time to popularize the concept as well to increase awareness of the benefits of LPG. Tata Memorial Hospital. 100 Rasoi Ghars were set up in the forest area in co-ordination with the forest department. Delhi. The innovative concept of Rasoi Ghar. l l l l l The Scheme has made a deep impact on the quality of living of rural people who otherwise dependent on charcoal. Today there are more than 1350 Rasoi Ghars operating in 22 states and benefiting more than 15. Ujjain etc.000 trees per Rasoi Ghar. l l l l A Rasoi Ghar l The Rasoi Ghar concept has now been expanded to public utility areas such as hospitals etc.
Project cost : Rs. Safety hazards on account of sabotage. storms. Low capital cost per tonne of storage.000 MT tankers resulting in freight savings. Surface land requirement is low in view of reduced safety distances. Completion : August 2006. earthquakes and explosions are minimised. A section of the Cavern under construction 102 . By far the safest and environment friendly means of storing LPG. below the earth’s surface and is fully isolated. 333 crores. External fires will not affect storage.) INDIA’s FIRST UNDERGROUND (CAVERN) LPG STORAGE FACILITY l l l l l l l l l l l l l l l Being set up by JV between HPCL and M/s. Principle of containment ensures no leakage or contamination.53rd Annual Report 2004-05 Special Focus Areas (Contd. TOTAL of FRANCE (50 : 50). LPG imports in large size 40. Ltd. First in South Asia. called South Asia LPG Pvt. Underground LPG Cavern facility at Visakh 60. Technologically proven methodology.000 MTs. Storage facility is located at a depth of 160 mtrs. Caverns by their very nature require very low maintenance and hence safety is in-built.
Lal. 2. 5.2004 . Oil Industry Safety Award for Best Overall Safety Per formance amongst Refineries to Mumbai Refinery from Oil Industry Safety Directorate. Shri T.) AWARDS/RECOGNITIONS . C&MD 3. Hon'ble Minister of Defence presenting the prestigious Good Corporate Citizen Award to Shri M. 7. former Prime Minister of Sweden Shri Pranab Mukherjee. Philippines for Employees friendly Policy and Practices.05 1. former Secretary. Government of India for working the longest number of manhours without a fatal/non-fatal accident/total Permanent Disability. 6.N. “Excellence Award 2005” to Retail SBU for outstanding contribution in Petro Retailing Business by DEW Journal. ED-Retail C&MD and ED-LPG receiving "Golden Peacock Award" from Dr.R. 103 . Ministry of Labour. Chaudhry. 8.Special Focus Areas (Contd. presenting the award for outstanding contribution in Petro Retailing business to Shri S.P.B. 4. Government of India for achieving the lowest average weighted accident frequency rate over a period of 3 consecutive years. 9. Award from Government of India for Excellent Overall Performance and being one of the top Ten Public Sector which fall under Excellent Category. First Performer in Lube Oil Blending Category to Mazgaon – Haybunder Lube Plant from Oil Industry Safety Directorate. Ministry of Labour. National Safety Awards for Mumbai Refinery from Directorate General . MOP&NG.B. National Safety Awards to Mumbai Refinery from Directorate General .Factory Advice Service & Labour Institute (Mumbai). Excellence Award to Retail SBU “Forecour t Retailer of the Year 2005” instituted by KSA Technopak – ICICI Bank. Manmohan Singh Hon'ble Prime Minister of India presenting the Prestigious MOU Award for Excellent overall performance to Shri M.Lal. Award for “Best Workplace Practices” from Asian Forum on Corporate Social Responsibility. Ola Ullsten.Factory Advice Service & Labour Institute (Mumbai). Rao. Golden Peacock Innovation Award for 2004 from Institute of Directors for innovation in manufacturing of Viscosity Index Improver. C&MD Dr.
) 10. Best Layout Award for HPCL house journal ‘HP News’ from Maya Ram Surian Foundation. India’s Most Respected Company Award from Business World in reaching out to customers as compared to other Oil PSUs.) AWARDS/RECOGNITIONS . Gold Award for Environment Excellence in Petroleum Refinery Sector . 22. Mid-Day HR Excellence Award from Mid-Day – Big Break & DAKs for Innovative HR Practices and Best Reinvention of HR functions. 13. Environment Excellence Gold Award for 2003-04 from Greentech Society for Commitment to Environment. 24. Good Corporate Citizen Award from PHD Chamber of Commerce and Industry for Corporate social responsibility. 19. Venkatchaliah.05 (Contd. Best Customer focus Award from Petrotech 2005 for Best Customer focus at Petrotech Stall. Health & Safety. 104 . Justice M.National Excellence for Innovative Technologies from Wisitex Foundation in association with Indian Merchants Chamber for selfless and untiring efforts and far reaching vision towards rural development and upliftment. ED-LPG 12. Recognition to LPG SBU . Health & Safety. 11. Best Employers Award from Hewitt Associates for progressive people practices and initiatives. Role Models and Brand Leadership.2004 . Sahni. 25. Golden Peacock Innovation Award for 2004 from Institute of Directors for highest achievement in the fields of quality innovation management and innovative products/services. 23. 20. National Safety Council Safety Award (NSCI) from National Safety Council to Mumbai Refinery for Occupational Safety and Health Management and meritorious performance over sustained period of 3 preceding years. 21. at their doorsteps. 15. 16.Rasoi Ghar . Excellent Energy Conservation Implementation Gold Award from International Greenland Society for Energy Conservation. Health & Safety. 18. Safety Gold Award from Greentech Society for Commitment to Environment. 17. ‘Golden Peacock Award' to LPG SBU for Innovative Product/Services for its ‘Ji Haan’ initiatives. 14.N. Former Chief Justice of India. India Marketing Award – 2004 to LPG SBU from Exchange 4 Media Group for Excellence in Marketing Services Category for their initiative in promising the customers the right weight of LPG cylinder.2003-04 from Greentech Foundation for Commitment to Environment.53rd Annual Report 2004-05 Special Focus Areas (Contd. presenting the "Golden Peacock Award" to Shri S.V. Productivity enhancement and upgradation of conservation facilities. Award for Innovative Brand Strategies under DAKS Awards for Brand Excellence from Indian Brand Summit which recognises talent and encourages Mentorship.
264 Human Assets vis-a-vis Total Assets No.561 3.03 2003-04 21 . 2. 3.378 7. Employees’ compensation represented by direct & indirect benefits earned by them on cost to Company basis.540 3.78 4.86 8.264 7.980 39. Rs.757 2.074 2.50 5.52 41.048 1.315 Total 10.561 8./Crores 2004-05 VALUE OF HUMAN RESOURCES Management employees Non Management employees 4.641 19. VRS compensation for 2004-05) Profit Before Tax Ratios (in %) : PBT to Human Resource Employee Cost to Human Resource Human Resource to Total Resource 10. The evaluation as on 31st March 2005 is based on the present value of future earnings of the employees on the following assumptions.584 7.266 714 1.280 1. HPCL recognises the value of its human assets who are committed to achieve excellence in all spheres.748 Above 50 1.031 1.29 7.206 3. of Employees Management Non Management Average Age Accounting For Human Assets The Lev & Schwartz model is being used by our Company to compute the value of Human Resources.724 8. Several initiatives for development of human resources to meet new challenges in the competitive business environment have gained momentum.Human Resource Accounting HPCL considers human dimension as the key to organisation's success. Age No. of Employees Value of Human Assets Net Fixed Asset Investments Net Current Asset Employee Cost (incl. Earnings upto the age of superannuation are considered on incremental basis taking the Company’s policies into consideration. The Human Resource Profile given below in table shows that HPCL has a mix of energetic youth and experienced seniors who harmonise the efforts to achieve the Company's goals.514 20.775 18.532 3. 1.788 473 1.263 1.562 6.768 41 .40 3.64 40.584 11.30 462 294 168 31 .481 570 2. Such future earnings are discounted @ 11% (2003-04 : 11%).088 7.999 43 105 .730 1.
and (iii) In the case of Cash Flow Statement. Chartered Accountants Nimesh Bhimani Partner Membership No. (b) In our opinion. An audit includes examining. we report that no director is disqualified as at March 31. (g) In our opinion. 2003. As required by the Companies (Auditors’ Report) Order. has been appropriately dealt with while preparing our report.M. of the cash flows for the year ended on that date. of the state of affairs of the Company as at March 31. Our responsibility is to express an opinion on these financial statements based on our audit. 2005 106 . so far as it appears from our examination of these books and proper returns. adequate for the purposes of our audit. made available to us. Further to our comments in the Annexure referred to in Paragraph 3 above. 8 to Schedule 20 B regarding treatment of Income tax benefits. (“Order”) issued by the Central Government of India in terms of sub-section 4A of Section 227 of the Companies Act. 2005 and also the Profit and Loss Account and Cash Flow Statement of the Company for the year ended on that date annexed thereto. Kapadia & Co. We conducted our audit in accordance with auditing standards generally accepted in India. as well as evaluating the overall financial statement presentation. and to the best of our information and according to the explanations given to us. We have audited the attached Balance Sheet of Hindustan Petroleum Corporation Limited. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. 3. (i) In the case of the Balance sheet. 39434 2. on a test basis. 2005. the said accounts give the information required by the Companies Act.53rd Annual Report 2004-05 Auditors' Report TO THE MEMBERS OF HINDUSTAN PETROLEUM CORPORATION LIMITED 1. For G. 1956. a statement on the matters specified in paragraphs 4 and 5 of the said Order. have been received from the branches.P. and read with note no. as at March 31. 1956. An audit also includes assessing the accounting principles used and significant estimates made by management. (d) The Balance Sheet. 1956. (e) In our opinion. proper books of accounts. (ii) In the case of the Profit and Loss account. 4. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. 2005. 30547 Place : New Delhi Date : May 26. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. we enclose in the Annexure. from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act. were necessary for the purpose of the audit. to the best of our knowledge and belief. Balse Partner Membership No. have been kept by the Company. Raiji & Co. For N. Chartered Accountants Vinay D. These financial statements are the responsibility of Company’s management. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act. as required by law. We believe that our audit provides a reasonable basis for our opinion. 1956. we report that : (a) We have obtained all information and explanations which. (c) The Branch Auditors’ report. of the profit of the Company for the year ended on that date. the Balance Sheet. (f) On the basis of the written representations received from directors of the Company and taken on record by the Board of Directors. evidence supporting the amounts and disclosures in the financial statements.
Sub-clause (b). fixtures and office equipment. (d). 1956. and the rules framed thereunder with regard to deposits accepted from the public. the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 58A and Section 58AA of the Companies Act. has adopted a practice of carrying out physical verification of its fixed assets. 5. and having regard to the fact that some of the items are of specialised nature in respect of which suitable alternative sources do not exist for obtaining comparative quotations. except LPG cylinders and fixed assets of the erstwhile Kosan Gas Company undertaking.Annexure to Auditors' Report (Referred to in paragraph 3 of our report of even date) 1. In our opinion. (c). (c) The Company has maintained proper records of inventory. over a period of three years in the case of Plant and Machinery and other assets. 1956. and according to the information and explanations given to us. no comments are required to be offered in respect of reasonability of prices at which such transactions have been entered into at the relevant time. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India. In our opinion. on a staggered basis. and according to the information and explanations given to us. 4. there are adequate internal control procedures commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. having regard to the size and nature of its business. not handed over. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for items like pipes. firms or other parties covered in the register maintained under Section 301 of the Companies Act. 1956. the inventories were physically verified during the year by the Management at reasonable intervals. (b) The procedures of physical verification of stocks followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business. during the year. the Company. 1956. 107 . (c) Fixed assets disposed off during the year were not substantial and. (f) and (g) of sub-para (iii) of para 4 of the Order are not applicable. 2. meters. secured or unsecured to/from companies. the Company has an internal audit system commensurate with its size and the nature of its business. In our opinion. 3. 6. there were no transactions that needed to be entered in the register in pursuance of Section 301 of the Companies Act. Based on the audit procedures applied by us and according to information and explanations given to us. instruments and other similar items peculiar to a continuous process industry. However. certificates confirming stocks held have been received from them. (e). the existence of the fixed assets situated at the residence of the employees is taken on self declaration basis. do not affect the going concern assumption. In the case of materials lying with third parties. and over a period of five years in the case of furniture. (b) As there have been no transactions that needed to be entered in the register maintained under Section 301 of the Companies Act. (b) As explained to us. therefore. We were informed that discrepancies noticed on such verification as compared to the book records have been properly dealt with in the books of account. 7. (a) As explained to us. We were informed that discrepancies noticed on such verification as compared to the book records were not material and have been properly dealt with in the books of account. (a) To the best of our knowledge and according to the information and explanations given to us. the Company has neither granted nor taken any loans. valves.
14 76.36 280. 2005.1995 to 1999 .703.1994 173.52 1998 .32 533. According to the information and explanations given to us.58 58.78 49. including Provident Fund. dues relating to sales tax/customs duty/ wealth tax/excise duty/cess which have not been deposited on account of disputes with the related authorities have been reflected in the table here below : Forum Commissioner (Appeals) Amount (Rs.608.04 270. however.06 1.93 CESTAT 43.440. We are of the opinion that prima facie the prescribed accounts and records have been maintained and are being made. 1956. Service Tax.06 560. made a detailed examination of the records with a view to determine whether they are accurate or complete.55 4.68 1994 . According to the information and explanations given to us and on the basis of our examination of the books of account.01 Appellate Tribunal Grant Total – Central Excise (A) Sales Tax Act Maharashtra GST Gujarat GST/CST Sales Tax Appellate Tribunal 3. the maintenance of cost records has been prescribed under Section 209 (1) (d) of the Companies Act. Customs Duty. from the date they became payable.2005 1996 1998 2004 9. Excise Duty. We have not.1999 1994 1997 1997 1997 1997 1998 1999 2001 2002 2003 2005 1998 1998 1998 1998 1999 2000 2002 2003 2004 1985 1993 1994 1997 2003 Year 2005 2004 . Investor Education and Protection Fund. the Company has been regular in depositing undisputed statutory dues. There are no undisputed dues payable for a period of more than six months as at March 31.020.96 73.143. Cess and any other statutory dues during the year with the appropriate authorities. We have broadly reviewed the books of account maintained by the Company in respect of products where.53rd Annual Report 2004-05 Annexure to Auditors' Report 8.(a) (b) Statute Central Excise 108 .76 10. Sales Tax.79 4. pursuant to the Rules made by the Central Government.54 2.503./Lakhs) 426.2000 1986 .64 26.047.49 7.86 32. Employees’ State Insurance. Wealth Tax.38 8. Income Tax.
1998 1994 .1999 1996 .87 16.2003 1989 .43 8.29 100.2004 1994 .68 261.15 1994 .16 8.1998 1994 .2003 109 .1996 1986 .37 4.069.56 1987 .10 15.83 28.Annexure to Auditors' Report Statute Bihar State CST/GST/Finance Act/Works Contract Act Uttar Pradesh CST Andhra Pradesh State GST/CST Karnataka State KST/CST/ Entry Tax Haryana CST Jammu and Kashmir Sub-Total (B)(i) Commissioner/ DCCT/ADC/JCCT Gujarat State MST Maharashtra State Sales Tax West Bengal State Sales Tax/CST Bihar State DFA and CST Orissa State GST/Entry Tax Assam State CST Uttar Pradesh State CST Delhi State CST Rajasthan State Andhra Pradesh State GST/CST Kerala State GST/CST Karnataka State CST/GST Jammu and Kashmir 102.39 31.27 1.03 80.578.1996 1987 .984.576.1988 to 1995 .2002 1997 .1999 1989 .1990 to 2002 .405.76 3.1990 to 2002 .2002 2002 .34 4.498.2001 1994 .381.02 8.11 1.31 Forum Amount (Rs.00 1.409.323./Lakhs) 854.1999 1998 .2003 11.674.58 Year 1986 .1998 1996 .1997 1996 .344.1987 to 2002 .62 29.90 138.13 2.2003 Sub-Total (B) (ii) Sales Tax Kerala State Karnataka Entry UP CST/Works Contract Sub-Total (B) (iii) Kerala High Court Karnataka High Court 336.2002 1997 .54 368.2003 1997 .1995 1976 .2000 1985 .1998 1998 .99 860.
61 4. debentures and other investments. In our opinion. 12. Therefore the provisions of sub-para (xiii) of para 4 of the Order are not applicable to the Company.53rd Annual Report 2004-05 Annexure to Auditors' Report Statute Sales Tax Assam GST Madhya Pradesh Sub-Total (B)(iv) Grand Total – Sales Tax Act (B) (i + ii + iii + iv) Customs Duty Commissioner (Appeals) Assam Board of Revenue Madhya Pradesh Board of Revenue 4.49 The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the financial year immediately preceding such financial year. the Company is not dealing or trading in shares. the Company has not provided guarantees for loans taken by others from banks and financial institutions.965.031.21 6.75 1994 .700.2001 Grand Total – Customs Duty (C) Grand Total (A + B + C) 10. According to the information and explanations given to us. 110 ./Lakhs) Year 35. According to the information and explanations given to us. 11. securities.1987 Forum Amount (Rs. Therefore the provisions of sub-para (xiv) of para 4 of the Order are not applicable to the Company. 14.55.1999 1985 .752.95 18. In our opinion and according to information and explanations given to us. According to information and explanations given to us and based on the checks carried out by us. 13.56 62. the Company has not granted loans and advances on the basis of security by way of pledge of shares.96 1. the Company has not defaulted in repayment of dues to financial institutions or banks or debenture holders. The Company is not a chit fund/nidhi/mutual benefit fund/society. the term loans taken during the year have been applied for the purpose for which they were raised.946. debentures and other securities. 15. 35.01 1993 .025.2003 2000 . 16.
prima facie. securities have been created in respect of debentures issued which have been redeemed in full during the year. For G.P. 21. According to the information and explanations given to us. According to information and explanations given to us. we report that no fraud on or by the Company. fund raised for short term basis have. Raiji & Co. Chartered Accountants Vinay D. According to information and explanations given to us the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act. 1956 during the year. and overall examination of the balance sheet of the Company. 20. not been used during the period for long term investment. 18. 39434 111 . Balse Partner Membership No. The Company has not made any public issue of any securities during the year. 19. having material misstatement on the financial statements has been noticed or reported during the year under audit. Chartered Accountants Nimesh Bhimani Partner Membership No. 30547 Place : New Delhi Date : May 26. Kapadia & Co.M.Annexure to Auditors' Report 17. 2005 For N. According to the information and explanations given to us and based on the audit procedures performed and representation obtained from the management.
30 13 6.81 542.430.82 810.943.93 8.393.07 1.91 7.R.63 12.73 1.578.01 7.387.B.75 12. NARAYANAN Company Secretary Place : New Delhi Date : May 26.502.827.101.32 6. KAPADIA & CO.177.21 1.69 3 4 319.809.29 199.44 2.84 5.61 201.92 8. BALSE Partner 112 .53 1.48 1.35 1.207. Chartered Accountants NIMESH BHIMANI Partner FOR N.682.865.P.M.048.85 6./Crores SCHEDULE SOURCES OF FUNDS Shareholders’ Funds : a) Capital b) Reserves and Surplus Loan Funds : a) Secured Loans b) Unsecured Loans Deferred Tax Liability Total APPLICATION OF FUNDS Fixed Assets : a) Gross Block b) Less : Depreciation c) Net Block d) Capital Work-in-Progress Investments Current Assets.513.02 10. LAL Chairman & Managing Director C.000.82 9.988.67 Net Current Assets Total STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS 20 2004-05 2003-04 1 2 338.454.742.000.42 5.21 0.53rd Annual Report 2004-05 Balance Sheet as at 31st March.91 1.50 9.95 11.63 0. Loans and Advances : a) Inventories b) Sundry Debtors c) Cash and Bank Balances d) Other Current Assets e) Loans and Advances Less : Current Liabilities and Provisions : a) Liabilities b) Provisions 5 12.897.402. Chartered Accountants VINAY D.14 1.700.756. 2005 Rs.14 7.90 7.074.17 5.403.569.448.158.374.449.775.80 1.17 6.730.655.000.95 M.64 786.08 10.43 4.25 2.35 2.32 2.897.53 6 7 8 9 10 11 12 6.185. 2005 FOR G.15 1. RAMULU Director-Finance N.85 338.440.69 2.84 7.11 496.048. RAIJI & CO.
94 4.645. Chartered Accountants VINAY D.04 – 1.00 713.94 crores/Weighted avg.94 crores) 2004-05 64.903.350.19 56.R.326.315.42 1.51 5.64 37.33) (147.15 5.268.45 54.576. BALSE Partner 113 .64 58.228.41 15.122.903.171.384.00 6.93 95. 2003-04 : EPS = Net Profit .268.73 – 169. of shares .640.897.264.97 570.86) 536.937.Basic and Diluted 1.022.017.35 55.65 5.244.33 5.62 1.Rs.980.47 50.52 127.39 25.22 90.26 379.304. 2003-04 : Rs.33 71.88 542.90 34.04 190.18 Less : Excise Duty Paid Net Sales Net Recovery from/(Payment to) Industry Pool Accounts Recovery under Subsidy Schemes Other Income 14 INCREASE/(DECREASE) IN INVENTORY EXPENDITURE AND CHARGES Purchase of Products for resale Raw materials consumed Packages consumed Duties applicable to products Transhipping Expenses Payments to and provisions for Employees Other Operating Expenses Depreciation/Amortisation Interest 15 16 17 18 PROFIT FOR THE YEAR BEFORE PRIOR PERIOD ADJUSTMENTS AND TAXES PRIOR PERIOD ADJUSTMENTS DEBITS/(CREDITS) (NET) 19 PROFIT BEFORE TAXES PROVISION FOR CURRENT TAXATION PROVISION FOR DEFERRED TAXATION (NET) PROVISION FOR TAXATION OF EARLIER YEARS WRITTEN BACK PROFIT AFTER TAXES BALANCE BROUGHT FORWARD Transfer from Debenture Redemption Reserve PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATED FOR : General Reserve Transfer to Debenture Redemption Reserve Interim Dividend Proposed Final Dividend Tax on Distributed Profits BALANCE CARRIED FORWARD EARNINGS PER SHARE (in Rs. no.71 (79.904. Chartered Accountants NIMESH BHIMANI Partner FOR N.36 605.640.1.05 20.68 329./Crores SCHEDULE INCOME Sale of Products (Net of Discount : Rs.517.10 160.422.993.018.Profit and Loss Account for the year ended 31st March.277.M.00 203.39 51. of shares .19 100. RAIJI & CO. no.60 crores.15 317.10 – 6. RAMULU Director-Finance N. KAPADIA & CO.61 1.67 339.65 49.17 2003-04 56.21) 2.33.46 658.689.B. NARAYANAN Company Secretary Place : New Delhi Date : May 26.332.) . 2005 Rs.33.38 91.60 589.Rs.55 (7.33 crores/Weighted avg.53 60.43 1.57 5. 462.33 2.1.339.893 crores.87 33.60 – 1.677.11) 1.424. 2005 FOR G.38 81.P.50 30.22 (76.30 1.79 1.96 59.04 79.69 (2004-05 : EPS = Net Profit .05 357.887 crores) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS 20 M.277. LAL Chairman & Managing Director C.
10/.164.50. (2) 52.each B.00 25.75 349.75 349. on the amalgamation of Caltex Oil Refining India Limited (CORIL) with the Company.91 3.27 1.31 190.937.000 Equity Shares of Rs. Capital Redemption Reserve and accumulated profits.73 114 .50 % Secured Non-Convertible Debentures redeemable at par on February 4. 2007 with an option for early redemption of debentures.00 339.) ii.30. Authorised : 75.12 14.00.000 Cumulative Redeemable Preference Shares of Rs.91 400.00 339.93.40 338.25 350.00 695.93 0.013.00 – 885.000 shares of Rs. Overdrafts from Banks (secured by hypothecation of Stock-in-Trade) – 319.each Subscribed and Called up : 33.00 100.00 – 100. Issued : 33.150.000 fully paid up equity shares of Rs.33 0. 10/.91 319.000 Equity Shares of Rs.150.44. 2005 (Secured against certain immovable properties of the Company.70 127.64 8.00 142. RESERVES AND SURPLUS Share Premium Account As per last Balance Sheet Less : Calls Unpaid Debenture Redemption Reserve As per last Balance Sheet Add : Transfer from Profit and Loss Account Less : Transfer to Profit and Loss Account General Reserve As per last Balance Sheet Add : Transfer from Profit and Loss Account Profit and Loss Account Surplus per Account annexed 1. (3) 26.00 – 100.10/.30.90 (1) 77./Crores 2004-05 1.30. for consideration other than cash. CAPITAL A.33 339. 100/. C. 10/.92 1. 2.101.70 5.53rd Annual Report 2004-05 Schedules forming part of the Balance Sheet Rs.39 885.each were allotted to the shareholders of Lube India Limited on the amalgamation of that company for consideration other than cash.73 542.each fully paid up Less : Calls unpaid by Others 2003-04 0.each were allotted as fully paid bonus shares by capitalisation of Capital Reserve.33 339.19 7.268. at par.92. 10/.10/.43 338.33 0.each were allotted to the President of India. 8.73 1.10 1.000 fully paid up equity shares of Rs.000 Equity Shares of Rs. on February 4.85 100.403.12 13. SECURED LOANS i.43 5.25 3220.127.116.11.00 100.02 75.each 34.
69 552.34 – 0. OTHER THAN INTANGIBLE ASSETS Land .32 1. 6.158. 0.028.12 crores) has not been provided for.28 crores) From Oil Industry Development Board (Due for repayment within one year Rs.27 5.72 26.353.449.24 70.69 504.06 271.155.72 – 4. 7./Crores 2004-05 4.65 11. 2003-04 : Rs.71 241.22 1.11 – 4.832.55 162.03 0.12 – 653.69 0.88 91.45 1.95 – 8. 0.97 4.43 – 0.37 4.05 181. UNSECURED LOANS Fixed Deposits Short Term Loans from Banks (Due for repayment within one year Rs. Nil) 0.578.79 1. 2. 0.578.865.29 795. 0.28 2003-04 200.22 1.05 crores (2003-2004 : Rs.35 0.93 716.05 278.00 – 1.72 6.63 13. Fixtures and Office/Lab.35 6.46 10.926.03 29.58 – 1.07 crores (2003-2004 : Rs.61 269. 66.387.42 137.29 69. Includes Rs.12 crores (2003-2004 : Rs.40 659.01 lakhs) being share application money in Co-operative Housing Societies.78 crores) being the Corporation’s share of cost of land and other assets jointly owned with other Oil Companies. 1155. 2003-04 : Rs.19 – 47.63 6.754.32 1.87 169. 3.947.17 11.33 2. 2.15 421.884.427.09 4.17 145.06 crores) Plant & Equipment Rs.24 31.665.47 88. 5.95 6. 9. C.75 24.14 crores (2003-2004 : Rs. 0.134.01 lakhs (2003-2004 : Rs.53 – 1. 0.22 5.09 41.83 134. 0.393.943.24 35.78 20.65 9.33 77.07 crores).59 606.49 22. 0. 62.69 0. 115 .60 crores) of assets of erstwhile Kosan Gas Company arising out of vesting of that company with the Corporation.20 12. INTANGIBLE ASSETS Right of Way Technical/Process Licences Software – 6. 8. FIXED ASSETS (A & B) Gross Block at cost as at 01/04/2004 Additions/ Deductions/ ReclassifiReclassifications cations Gross Block Depreciation Total at cost and Depreciation as at Amortisation and 31/03/2005 for the year Amortisation 2004-2005 upto 31/03/2005 1.78 9.22 12.06 123.20 11.44 5. 1. 3.11 Total (B) Grand Total [(A) + (B)] Previous Year A. Consequently.05 923.06 crores (2003-2004 : Rs.561.Land Railway Siding and Rolling Stock Plant and Equipment Furniture. Title Deeds to some of the lands acquired are still to be obtained.05 6. D.46 45.26 185. Includes Rs.23 17. This amount includes Rs.41 32.354.07 Rs.387. Equipment Transport Equipment Unallocated Capital Expenditure on Land Development (D) (C) 176.754.19 101.15 461.66 crores.31 809.69 176.11 1.01 crores) Building Rs.37 64.12 8. 52.82 16.46 0.18 14. 2. 2.20 – – 19. B. 1665. 4.81 11.01 crores (2003-2004 : Rs.068.60 crores (2003-2004 : Rs.Freehold Roads and Culverts Buildings Leasehold Property .035.39 934.Schedules forming part of the Balance Sheet Rs.63 141.64 6.809. 0.20 5.33 crores./Crores Net Net Block Block as at as at 31/03/2005 31/03/2004 A.60 1.58 83. 0.43 10.66 – 6.66 1.48 Total (A) B.64 – 29.72 4.58 9.24 26.14 crores) not handed over to the Corporation consisting of Freehold Land Rs.77 16. Includes Rs. 0.52 185. cumulative depreciation on the Fixed Assets amounting to Rs.61 4.77 – – 0.26 39.10 20.05 2. 1.53 4. 0.53 – 6.32 579.88 6.
each fully paid up (50. 10/.84 7.68 1.71 292. Petronet MHB Ltd. 29.048.each fully paid up Total (A) 423.13 10. 10/.231.03 760. 10/.each fully paid up 2.49 477.87 4.59. Petronet India Ltd.each allotted during the year) 7.96% Oil Companies Government of India Special Bonds 2009 Unquoted 1. 10/.53rd Annual Report 2004-05 Schedules forming part of the Balance Sheet Rs. INVESTMENTS (Long term. Pvt. Hindustan Colas Ltd. 10/.000 Equity Shares of Rs.10.99.each fully paid-up (34.00.53.000 Equity Shares of Rs.16 57.25. 99.91 47.38 9. 10/.00 0.68 931. South Asia LPG Co. 10/.41 786. 47. Mangalore Refinery and Petrochemicals Ltd. 10/. 10/.70 26.02 1.00. CAPITAL WORK-IN-PROGRESS (at Cost) Unallocated Capital Expenditure and Materials at Site Advances for Capital Expenditure Capital Stores Capital Stores lying with Contractors Capital goods in transit Construction period expenses pending apportionment (Net of recovery) : Establishment charges Interest 648.11 0./Crores 2004-05 6.00 0. Ltd. (Wholly owned subsidiary) 29.999 Equity Shares of Rs.00 27.20. at Cost) A.each fully paid up 4.43 25.50 0.99.00 22.000 Equity Shares of Rs. Bhagyanagar Gas Ltd.13 10.76 0.each fully paid up 5.34 116 . 10/.72 16.14 2003-04 471. Ltd.45 2.59 18.000 Equity Shares of Rs.000 Equity Shares of Rs.each purchased/ allotted during the year) 2.71 496.66 1.756.000 Equity Shares of Rs.00 471.88 4. 1.30.71.each fully paid up 3.02 2.03 38.518 Equity Shares of Rs. 2.43 18. TRADE INVESTMENTS Quoted 1. 6.00 295.72 16.each fully paid up 6. 1.50 4. 12. Prize Petroleum Co. Guru Gobind Singh Refineries Ltd.600 Equity Shares of Rs.71 0.57.29 4.75.497 Equity Shares of Rs.
957.01 – – – – – – – – – 0.71 1.. 0.15 lakh (2003-04 : Rs.84 2. 5% Debenture of face value of Rs.0.72 1.0.Rs.02 crore (2003-04 : Rs. East India Clinic Ltd. 10.. Scooters India Ltd.13 345.50 % each Market/ Redemption Value 2004-05 2003-04 117 .14 lakh) 2. OTHER INVESTMENTS Quoted 1. Petroleum India International (Association of Persons)** Contribution towards Seed Capital Total (B) Total Investments [(A) + (B)] Less : Provision for loss on Investments .07 lakh (2003-04 : Rs.07 lakh) 3.0.01 0. Indian Petrochemicals Corporation Ltd. 10 each fully paid up Unquoted 1..Schedules forming part of the Balance Sheet Rs. 0. 0. Government Securities of the face value of Rs.402.02 – 0. Kochi Refineries Ltd.70 2.05 0. have a share of 12..08 1.048. 0.. Ltd.10 lakh) On hand* .Rs.14 lakhs) not in the possession of the Company Members in Petroleum India International (AOP) where Hindustan Petroleum Corporation Ltd.10 lakh) 4.07 lakh Rs.23 2.05 0.0.15 lakh Rs.. Bharat Petroleum Corporation Ltd.84 – 0. 100/. 0.10 lakh (2003-04 : Rs. 0./Crores 2004-05 B.Rs.14 lakhs (2003-04 : Rs. 0.000 Equity Shares of Rs.each fully paid up Rs. Chennai Petroleum Corporation Ltd. 0. Government Securities of the face value of Rs.048.25 lakh) 2. Bongaigaon Refineries & Petrochemicals Ltd.702.756. 0.0.354. 1. 0..756.14 lakh (2003-04 : Rs.0.84 – 1.14 lakh (2003-04 : Rs.10 lakh (2003-04 : Rs. 0.14 lakh) 2003-04 0. 0. 0. 0.25 lakh (2003-04 : Rs.42 Cost 2004-05 2003-04 Aggregate of quoted Investments 1.42 – 2.Rs. Shushrusha Citizen Co-operative Hospital Limited 100 Equity Shares of Rs.02 crore) Deposited with Others On hand .42 * ** Includes Rs. 0.02 – 0. 0.24 lakh (2003-04 : Rs. ½% Debenture of face value of Rs. Engineers India Ltd. IBP Co.048.756.08 2.50 Aggregate of unquoted Investments 354.15 lakh) 1.24 lakh) Deposited with Others .
61 38.26 28.21 * ** Represents amount deposited as per Court Order pending final disposal.22 1.54 crores.54 crores (2003-04 : Rs.0.24 4.048.56 1.29 10. 0. SUNDRY DEBTORS (Unsecured) Over six months : Considered good Considered doubtful Others : Considered good Less : Provision for Doubtful Debts 303.39 31.77 5. 13.47 crores) 1.39 crores (2003-04 : Rs.09 crores) 1.94 28. valued and certified by the Management) Raw Materials (Including in-transit Rs. 2003-04 : Rs. Includes lodged as security deposit with Mumbai Port Trust .69 197.94 0.56 745. 2003-04 : Rs.03 1.17 31.17 275. with IAAI .25 crores. 221. 390.028.96 5.53 9.24 crores (2003-04 : Rs.21 0. 1. 0. 244. 2.292.44 125. CASH AND BANK BALANCES Cash on hand Cheques Awaiting Deposit With Scheduled Banks : On Current Accounts On Non-operative Current Accounts* On Fixed Deposit Accounts ** With Others : In Current Account with Municipal Co-operative Bank Ltd.080.63 0.01 2.02 1.01 3.21 5.166./Crores 2004-05 8.000.Rs.25 194.68 13.13 crores. 8.11 0. (maximum balance during the year Rs.05 199.682.59 crores) 2003-04 931.65 1.42 5.93 crores.07 7. 0. 2003-04 : Rs.0.0.06 201.20 lakhs) 118 .402.556.59 196.54 crores). 2003-04 : Rs.0.32 110.65 962.53 4.Rs. INVENTORIES (As per Inventory taken.53rd Annual Report 2004-05 Schedules forming part of the Balance Sheet Rs.85 0. 449. 0.20 lakhs (2003-04 : Rs.15 crores) Finished Products (Including in-transit between locations Rs.Rs.149.74 0.107.24 crores) and with Sales Tax (Silvassa) .21 * Includes stock lying with contractors Rs.94 crores) Stock in Process Packages Stores and Spares * (Including in-transit Rs.
** Includes Rs.77 9.71 160. OTHER CURRENT ASSETS Interest accrued on Bank Deposits and Investments 12. LOANS AND ADVANCES Secured.373. (2003-04 : Rs. Nil.549.573.17 2.50 362.86 18.104.22.168 119 .77 338.42 7. CURRENT LIABILITIES AND PROVISIONS A.41 2. Nil (2003-04 : Rs.11 crores) being amount due towards Company’s share of profit in Petroleum India International.33 crore.32 2003-04 365. 0.64 106. Customs.116. Other Deposits Prepaid Expenses Amounts recoverable from Pool Account Share application pending allotment Advance towards equity Other Accounts Receivable *** Unsecured.13 79.01 crore.Nil).06 933.Schedules forming part of the Balance Sheet Rs. (2003-04 : Rs.84 – 1.10.32 0.78 1. maximum balance Rs.711. *** Includes Rs.39 0. Nil) due from Directors.29 15.227.33 90.00 753. considered doubtful : Accounts Receivable and Deposits Less : Provision for Doubtful Receivables 0.82 * Includes Rs. Nil (2003-04 : Rs. 0.28 3. considered good : Advances recoverable in cash or in kind or for value to be received * Interest Accrued thereon Unsecured. Current Liabilities Sundry Creditors i) Total outstanding dues of small scale industrial undertakings * ii) Total outstanding dues of creditors other than small scale industrial undertakings Deposits from Dealers/Consumers for LPG Cylinders Other Deposits Accrued Charges/Credits Preference share capital redeemed remaining unclaimed/uncashed Unclaimed Dividend** Unpaid matured fixed deposits Other Liabilities 4. maximum balance .28 200.73 10. 0.827. 0. Nil) and Rs.448.92 6. Port Trust etc.35 0.28 crores (2003-04 : Rs.18 101.41 60.02 crore) due from an Officer. 13. 0. (2003-04 : Rs.17 2.40 832.188.12 crore) due from Directors.35 crore.48 102.12 7.01 10.06 2.02 crore).71 95. Nil. 10.18 4.177.67 4.00 1. (2003-04 : Rs.094.Rs. (2003-04 Rs.01 10.05 0.Rs.84 2. maximum balance .835./Crores 2004-05 11.82 2.30 2.13 crore) and Rs. considered good : Advances recoverable in cash or in kind or for value to be received ** Balances with Excise. 0.30 2.98 8. maximum balance Rs.02 crore (2003-04 : Rs.72 6.41 2.45 51.569. Nil) due from an Officer.46 7.
(P) Ltd. M/s. Pyro Electric Instruments G. M J Patel & Co. Swaran Singh & Co. PTD Fasteners (P) Ltd.S. Surya Sai Engineering Works. Shantinath Constructions. S S R Electricals. Ganesh Engineering Works. Shalimar Valves (P) Ltd. Technika.M. Newtech Engineers. M/s. M/s. Prem Enterprises. M/s.. Pavani Enterprises. M/s. Sabari Engineering Contract. Prathyusha Safety Mfg. M/s.. M/s. M/s.. H. Microcare Computers (P) Ltd.01 7. Swan Enterprises (P) Ltd. Durga Electricals. Eskay Engineers & Precision. Dey & Company. M/s. Ahmed. M/s. M/s. Hydro Pneumatics. Precision Management Council.K. M/s. Cartal Technical Serivces. Pipefit Engineers. Associated Suppliers.33 37. M/s. Inmacro.. M/s. Coromandel Paints & Chemicals. Kevin Enterprises (P) Ltd. M/s. M/s. M/s.. Pearsons & Drums. Newage Industries. Gopal Engineering Works. V. H. M/s. M/s. M/s.S.. Sri Malleswar Enterprises. M/s. Gangotri Turbo Tech..Vidyut...59 810..N. Sagar..K. The above information is given to the extent available with the Company.. Ncon Turbo Tech (P) Ltd. (P) Ltd.56 1.K. Parth Enterprises. Leak Stop Experts. A. Shanmuka Engineering Works.. Instruments Private Ltd. Gujarat Infrapipes (P) Ltd. Fix Fit Fasteners Mfg. Sri Sanari Electrical & Eng. Geetha Enterprises.44 69. M/s. M/s. J J Industries. M/s. Eastern Polycraft. Pace Engineering Indl.. Shiva Jyothi Enterprises. Sebim Valves (India) (P) Ltd. Srinivasa Industries. Pavankumar Blasting Works. M/s. Modern Papers. M. Sri Manoj Electrical Works.V. M/s... M/s. President Engineering Works. Modern Electrical Works. S. Techno Process Equipments Ltd.. M/s. M/s. S. Co. M/s. M/s. CDC Carboline India Pvt. M/s. Engineering Co. M/s. Gobs Constructions. S P M Mathew & Bros. Enterprises. M/s.. M/s. M/s. ** No amount is due as at the end of the year for credit to Investors’ Education and Protection Fund. M/s. Supreme Engineering Agencies. K. Jayalakshmi Engineering Con. M/s. M/s. M/s. M/s. Teekay Tubes (P) Ltd.. Floway Valves (P) Ltd. Ajay Industries.91 339. M/s. M/s. M/s. Punjab Boot House. M/s.. Voltamp Transformers (P) Ltd. Flash Forge (P) Ltd.. M/s. M/s. Sri Gajalakshmi Industries. 2003-04 489.. Hi-tec Valves... LPG Bulk Lloyds. A. Venkata Rao. Mastan Engineering Works. Prime Mover Governer Services. M/s. M/s. M/s. M/s.53rd Annual Report 2004-05 Schedules forming part of the Balance Sheet Rs.. Vinsun Enterprises. Sri Balaji Associates./Crores 2004-05 B. S P Constructions.. M/s. M/s. M/s. Yazard. M/s. A. M/s.. Shilpi Engineering. M/s. M/s. M/s. Ltd.L. M/s. M/s. M/s.. M/s. M/s. Girish V. Mani. Suresh Engineering Works. M/s. M/s.655. Sri Sai Leela Electrical Works. Mikroflo Filters (P) Ltd. M/s. Anil Aluminium Works.. Levcon Instruments (P) Ltd. Usha Engineering Works. M/s. M/s. Joseph Leslie Drager Mfg. M/s. S. M/s.. M/s. M/s.. M/s. Provisions Provision for Tax (Net) Provision For Dividend Provision for Pension Provision for other retirement benefits Tax on Distributed Profits 301. Ltd. M/s. M/s. M/s. Waaree Instruments Ltd. Pylon Engineers. Pioneer Corporation. Technologies. S. M/s. Sri Ganesh Ele & Rewinding. M/s.13 542. M/s. United Electrical & Rewindi.04 84. Sriram & Co. Mahalakshmi Engineers. M/s. M/s. Coastal Ammonia (P) Ltd. R R Engineering Company. M/s.98 47. Econo Valves (P) Ltd. M/s.. Sri Trinadha Electrical Works.85 6. Guru Industries. Southern Gasket Products. M/s. M/s. M/s. M/s. (P) Ltd. M/s. Dembla Valves (P) Ltd. M/s. M/s... Valves Ltd. Chhabi Electricals (P) Ltd. M/s.95 66. M/s.. M/s. M/s.. M/s. Ganesh Enterprises. M/s. Remi Process Plant & Machin. Raj Petro. Rajendra More. M/s. M/s.. Engg. IGP Engineers (P) Ltd. M/s. M/s. M/s.. M/s. M/s. M/s. Renuka Engineering Works. Packings & Jointings Gasket. Rao Welding Works. TAS Engineering Co (P) Ltd. M/s. M/s. Sohan Engineering Enterprise. Goodrich Gasket (P) Ltd. M/s. M/s. M/s. M/s. Fittings Manufacturing. M/s. M/s.. M/s. M/s. M/s. Yash Packaging. M/s. M/s. M/s.67 * OUTSTANDINGS DUES OF SMALL SCALE UNDERTAKINGS FOR MORE THAN 30 DAYS M/s..93 38. Fire Chemicals (India). M/s. Adradin. J R U Control (P) Ltd. Hemant Lahane. M/s.. Shreeji Suppliers. Pravasi Enterprises. M/s. Virgo Engineers Ltd.K.. Nireka Engineering & Co. M/s. M/s. M/s.. Mukund Engineering Services. M/s. Gaskets (India) Private Ltd.M. Marine Care N Associates. M/s.15 120 . Global Enterprises. M/s. G. Chemtrols Engineering Ltd. X Techs. Multi Thread Fasteners. M/s. M/s. M/s. Sanjay Sahai Sharma. M/s. Mahendra & Singh Constructions. M/s.988. Evans Electricals. M/s. Steel Samrat (India). Rank Controls & Instruments. M/s. M/s. M/s. K. Madras Industrial Products. M. Kangane. M/s. M/s. M/s. Manohar Singh Mehta. M/s. AES Energy Works (P) Ltd.207. M/s.. M/s. Kailash Arts.V..
84 713.33 159. 3.989.53 3.79 121 .Schedules forming part of the Profit and Loss Account Rs.05 crores).19 117.62 * ** Includes Rs. Nil (2003-04 : Rs.11 20. PAYMENTS TO AND PROVISIONS FOR EMPLOYEES Salaries.347. Gratuity etc.68 211.31 6.24 9. Voluntary Retirement Compensation Employee Welfare Expenses ** Less : Recoveries 453.88 92. Wages.149.37 34.77 3.80 – 129.90 68. Nil (2003-04 : Rs.16 41.69 4. 0.09 379. 12.53 Note : * Tax deducted at source amounts to Rs.79 crores (2003-04 : Rs.Rs.68 0.71 0.30 – 1.02 17. Gross billing : Rs.67 3.48 18. 197.39 15.78 crores (2003-04 : Rs.67 33.60 77.53 153.59 crores) towards leave encashment on the basis of actuarial valuation.92 228.107. Bonus etc.87 16.75 crores (2003-04 : Rs.68 4.78 25.777. 1.50 570.69 4.85 329.37 212.17 4.76 4.68 4.98 164.87 357.56 crores) ** Miscellaneous Income includes : Profit on contract .18 crores) towards post retirement medical benefits on the basis of actuarial valuation.24 197. * Contribution to Provident Fund Pension.149.19 – 158.49 151.3. INCREASE/(DECREASE) IN INVENTORY Closing Stock : Stock in Process Finished Products Less : Opening Stock : Stock in Process Finished Products 275.5.07 4./Crores 2004-05 14.19 23.10 crores) 2003-04 86.2. OTHER INCOME Interest (Gross) : * On Investments On Deposits On Staff Loans On Customers’ Accounts On Others Dividend Income Share of Profit from Petroleum India International (AOP) Rent Recoveries Profit on Sale of Investments Exchange rate variation (Net) Miscellaneous Income ** 74. Includes Rs.45 35. 1.347. Nil (2003-04 : Rs.86 34.17 4.03 4. Cost : Rs.85 14. 16.50 373.15 crores).47 27.20 3.382.
21) 0.93 7.50 23.97 – 1.72 1.53rd Annual Report 2004-05 Schedules forming part of the Profit and Loss Account Rs.87 866.08 300.82 59.22 – (3. OTHER OPERATING EXPENSES Consumption of Stores.34 0.49 40. Spares and Chemicals Power and Fuel Less : Fuel of own production consumed Repairs and Maintenance to Buildings Repairs and Maintenance to Plant and Machinery Repairs and Maintenance to other assets Insurance Rates and Taxes Equipment Hire Charges Rent Travelling and Conveyance Printing and Stationery Electricity and Water Charities and Donations Loss on Sale/write off of Fixed Assets/CWIP Stores and spares written off Write off of Goodwill (refer note 2 of Schedule 20B) Provision for Doubtful Receivables Provision for Doubtful Receivables written back Provision for Doubtful Debts (After adjusting provision no longer required written back Rs 0.63 101.34 29.04 – 5.17 9.65 67. INTEREST On Long Term Loans On Short Term Loans On Overdraft from Banks On Fixed Deposits Others – 78.68 3.69 94.01 81.77 10.39 9.95 0.76 12.77 969.32 55.37 3.12 1.91 – 27.36 2003-04 122 .70 165.71 320.97 7.69 0.34 857.13 0.60 82.91 153./Crores 2004-05 17.28 5.33 2. PRIOR PERIOD DEBITS/(CREDITS) Raw Materials Consumed – – (76.53 956.244.07 crores) Provision for assets under reconciliation Security Charges Advertisement and Publicity Sundry Expenses and Charges (Not otherwise classified) Consultancy and Technical Services Exploration Cost 70.46 18.07) 39.93 0.13 4.60 157.04 55.26 25.02 44.13) 2.68 38.08 55.13 0.98 1.17 11.84 – (0.11 crores.79 1. 2003-04 :Rs.64 19.43 94.28 57.02 3.0.21) (76.57 21.171.23 234.88 8.
6. SIGNIFICANT ACCOUNTING POLICIES Accounts are prepared under the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP). Impairment loss is recognised when carrying amount of any CGU exceeds its recoverable amount. are fully depreciated in the year of capitalisation. Application software are normally amortised over a period of four years or over its useful life before it becomes obsolete. are depreciated over a period not exceeding the useful life of the principal item of fixed asset.A. whichever is earlier. FOREIGN CURRENCY TRANSACTIONS a) b) Foreign Currency transactions during the year are recorded at the rates of exchange prevailing on the dates of transactions. Intangible Assets other than application software are amortised on a straight line basis over the useful life of the parent asset. INTANGIBLE ASSETS Cost of Right of Way for laying pipelines is capitalised as Intangible Asset and being perpetual in nature is not amortised. CONSTRUCTION PERIOD EXPENSES ON PROJECTS Related expenditure (including temporary facilities and crop compensation expenses) incurred during construction period in respect of plan projects and major non-plan projects are capitalised. All foreign currency assets and liabilities are restated at the rates ruling at the year end. Cost of Software directly identified with hardware is capitalised along with the cost of hardware.I. 1.C. in the manner and at rates prescribed under Schedule XIV to the Companies Act. 1956. 4.Statement of Significant Accounting Policies and Notes Forming Part of Accounts 20A. b) c) d) e) f) 5. Costs incurred on technical know-how/license fee relating to process design/plants/facilities are capitalised as Intangible Assets. 123 . Premium on leasehold land is amortised over the period of lease. except where otherwise stated. other than LPG cylinders and pressure regulators. disposal or deletion during the year. 5000/-.) and the provisions of the Companies Act. FIXED ASSETS Land acquired on lease for 99 years or more is treated as freehold land. IMPAIRMENT OF ASSETS Assessment of impairment of fixed assets is carried out on each balance sheet date. 3. Necessary estimates & assumptions of income & expenditure are made during the reporting period and difference between the actuals and the estimates are recognised in the period in which the results materialise. Application software is capitalised as Intangible Asset. from/upto and inclusive of the month of capitalisation/sale. DEPRECIATION a) Depreciation on Fixed Assets is provided on straight line method. Replacement of such spares is charged to revenue. All assets costing upto Rs. Interest on project specific borrowings are capitalised. Machinery Spares which can be used only in connection with an item of fixed asset and the use of which is expected to be irregular. 2. Accounting Standards issued by The Institute of Chartered Accountants of India (I. All income and expenditure having material bearing are recognised on the accrual basis. 1956 and is charged pro rata on monthly basis on assets.
Stock-in process is valued at raw material cost plus cost of conversion or at net realisable value. 7. Value of surplus. 124 . PROVISIONS A provision is recognised as present obligation of past event based on estimate as on the balance sheet date and settled on virtual certainty. whichever is lower. Empty packages are valued at cost. Stores and spares are valued at weighted average cost. if any. The proportionate share in the assets. Accumulated costs on exploratory wells in progress are expensed out in the year in which they are determined to be dry. obsolete and slow moving stores and spares. DUTIES ON BONDED STOCKS Excise/Customs duty is provided on stocks stored in Bonded Warehouses (excluding goods exempted from duty/exports or where liability to pay duty is transferred to consignee). when transferred from completed projects are valued at cost/estimated value. Surplus items. whichever is lower. 9. income and expenditure of joint operations are accounted as per the participating interest in such joint operations. DEPOSITS Amounts deposited with Government/semi-Government agencies not exceeding Rs.53rd Annual Report 2004-05 Statement of Significant Accounting Policies and Notes Forming Part of Accounts c) All exchange differences are dealt with in the profit and loss account except those relating to acquisition on fixed assets which are adjusted in the cost of assets and those covered by forward contract rates where the gains/losses arising from such restatement are recognised over the period of such contracts. Cost of acquisition. 12. whichever is lower.1000/. INVESTMENTS a) b) Long-term investments are valued at cost and provision for diminution in value thereof is made.each are directly charged as an expense in the year of payment. pending periodic assessment/ascertainment of condition. Current investments are valued at lower of cost or fair market value. 8. drilling and development are treated as capital work-in-progress when incurred and capitalised when the well is ready to commence commercial production. is reduced to net realisable value. INVENTORIES a) b) c) d) e) Crude oil is valued at cost on First In First Out (FIFO) basis or at net realisable value. EXPLORATION & PRODUCTION EXPENDITURE “Successful Efforts Method” of accounting is followed for Oil & Gas exploration and production activities as stated below : a) b) c) Cost of surveys. studies. 11. 10. liabilities. wherever such diminution is other than temporary. Finished products are valued at cost (on FIFO basis) or at net realisable value. carrying and retaining undeveloped properties are expensed out in the year of incurrence.
In compliance with Accounting Standard –17 on “Segment Reporting” issued by The Institute of Chartered Accountants of India. RESEARCH & DEVELOPMENT Expenditure incurred on research activities are charged off in the year they are incurred. 15. include applicable excise duty. 1961. 2. 1. 18. Prior Period items : Income and expenditure over Rs.1 lakh in each case pertaining to prior period items arising in the current period are considered as prior period items. TAXES ON INCOME a) b) Provision for current tax is made in accordance with the provisions of the Income Tax Act. All other claims/entitlements are accounted on the merits of each case/realisation. The assets and liabilities relating to LPG business of M/s. RETIREMENT BENEFITS Liability towards leave encashment. 125 . A compromise agreement for out of court settlement. SALE OF PRODUCTS Sales are net of discount. Pursuant to the deeds of assignment signed between the President of India and the Company in its capacity as the custodian of Parel Investment and Trading Company Limited (PITCL) and Domestic Gas Limited (DGL).Statement of Significant Accounting Policies and Notes Forming Part of Accounts 13. Deferred tax on account of timing difference between taxable and accounting Income is provided using the tax rates and tax laws enacted or substantively enacted by the Balance Sheet date. surcharges and other elements as allowed to be recovered as part of the price but exclude sales tax. 3. which has been charged to Profit & Loss Account. Contingent Liabilities in respect of show cause notices are considered only when converted into demands. post-retirement medical benefits and gratuity to employees is determined on actuarial valuation done at the year end. Expenses directly related to development activities which are capable of generating future economic resources are treated as intangible assets. 16. has been filed in the Delhi High Court.22 crores being excess of liabilities over assets. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS Contingent Liabilities and Capital Commitments are considered only for items exceeding Rs. pension. the required information is given in note 10S of Notes to Accounts. 20B. Raw materials consumed are net of discount towards sharing of under recoveries. 17. negotiated with erstwhile owners and approved by the Government of India. Kosan Gas Company were vested in the Corporation by an Act of Parliament which was challenged by the erstwhile owners in the Delhi High Court. the assets and liabilities relating to LPG businesses of PITCL and DGL were acquired by the Company resulting in a Goodwill of Rs.1 lakh in each case. Liability so determined is funded in the case of gratuity and provided for in other cases. b) c) d) e) Insurance claims are accounted on acceptance basis. ACCOUNTING/CLASSIFICATION OF EXPENDITURE AND INCOME a) Net Recovery from/Payment to Pool Account : Claim on Industry Pool Account/Government are accounted on acceptance in principle on the basis of available instructions/clarifications subject to final adjustment after audit as stipulated. NOTES FORMING PART OF ACCOUNTS 1. 14.
(a) Inter-Oil Company transactions are reconciled on continuous basis.88 (1.07 0. 277.80 7.68 crores (2003-04: Rs.89 – 1.35) Total 2004-05 91.18 (6.08) 126 .53 5.73) 2003-04 13.88) 2003-04 43.76) 2003-04 – – 19.64 2.83 4.53rd Annual Report 2004-05 Statement of Significant Accounting Policies and Notes Forming Part of Accounts 4.90 4.95) Joint Venture Companies 2004-05 91.454.57) (1. 490.47 2. Related Party disclosure : Subsidiary Company 2004-05 Sales Purchases Investment Advance towards Equity Share application pending allotment Interest Services Others Closing balances – 14.00 – 0.80 4.53 5.52) (32. 6.78 (2. the Company has accounted the discount received as follows: (a) Rs.96) (1. In respect of sale of subsidised LPG (Domestic) and SKO (PDS).039.30 – 2. Deferred Tax Assets/(Liabilities) arising due to timing differences comprise of : Rs.62) (1. However.66 crores (2003-04: Rs.80 5.30) 12.646.87 13.30 (300.87 33.444.62 (246. year end balances are subject to confirmation/reconciliation.00 – 0.44 (240. by offering discount on price of crude.00 2.51 – 9. SKO and LPG purchased from them.28 0.12 5.053. as advised by the Ministry of Petroleum & Natural Gas.34 4.12) 2003-04 43.10) (1.62 8.89 (1.34 2.05 69. 417.08 (303.98 0.374.22 crores) discount received on SKO (PDS) and LPG (Domestic) purchased from ONGC and GAIL has been adjusted against ‘Purchase of Product for Resale’.53 5.92 45. Accordingly.40 – 11.82 2.39) (25. 787.53 5.65 36.474. 5.72 18.499.64 – 5.412.12 – – – 2. (b) Customers’ Accounts are reconciled on an ongoing basis and are not likely to have a material impact on the outstanding or classification of the accounts. a part of the under-recovery suffered by the Oil Marketing Companies during the year was compensated by ONGC and GAIL.35 crores) discount received on crude oil purchased from ONGC has been adjusted against ‘Raw Material Cost’ and (b) Rs./Crores 2004-05 Deferred Tax Asset Provision for Pension Provision for Medical Benefits Provision for Leave Encashment Others Total (A) Deferred Tax Liability Depreciation Others Total (B) Deferred Tax Liability [(A) + (B)] 7.646.27 13.71 15.98 2.
Petronet India Ltd.32 69. Roy Choudhury.52 crores attributable to the said tax benefits. Ramulu.62 9. Sales Tax/Octroi iii. Rs. Land Rentals & Licence Fees v.Human Resources Shri C.72 114.. Director. Director . Ltd. 127 .82 150.10 10. Sales Tax/Octroi iii. Claims against the Company not acknowledged as debts 1.Statement of Significant Accounting Policies and Notes Forming Part of Accounts The names of parties are as follows : Subsidiary Company : Guru Gobind Singh Refineries Ltd.Finance Shri S. Director . Lal.82 157. Estimated amount of contracts remaining to be executed on Capital Account not provided for No provision has been made in the accounts in respect of the following disputed demands/claims since they are subject to appeals/representations and a substantial portion thereof is recoverable from Pool Account i. Income Tax ii. Mathur.Marketing (from May 10.73 68. B.05 910. Excise/Customs iv. has continued with the conservative accounting treatment for the subsequent years. Prize Petroleum Co.90 166.55 83. 8. Chairman & Managing Director Shri D. Employee Benefits/Demands (to the extent quantifiable) v. Company upon completion of assessment for the financial year 2001-2002 (assessment year 2002-2003) was granted deduction for claim under Section 80-IB.58 39. The Company while writing back the provision of Rs. Ltd. Excise/Customs iv. Previous year’s figures have been regrouped/reclassified wherever necessary. – 632.Refineries Shri Arun Balakrishnan.55 83. 2004) Details of remuneration to directors are given in note 10F of Notes to Accounts.48 166. Director .38 10. keeping in mind the past practice. Others Contingent Liabilities not provided for in respect of i..071.23 C. and Bhagyanagar Gas Ltd..60 32. being the first year for which the claim was made. Hindustan Colas Ltd. Income Tax ii. Pvt.99 – 551. Joint Venture Companies : Mangalore Refineries and Petrochemicals Ltd..81 33./Crores 2004-05 10 A. S. During the year. B..19 706.21 2003-04 341. 47. Petronet MHB Ltd. Guarantees on behalf of others vi. Key Management Personnel : Shri M. The Company has been consistently following a policy of accounting for income tax benefits in the year in which the benefit is allowed in view of the past experience of uncertainties surrounding the claim for tax benefits.72 111. South Asia LPG Co.78 49.
Contribution to Provident Funds Stores & Provision Electricity and Water (Net of recoveries) Repairs and Maintenance to Buildings Repairs and Maintenance to Plant & Machinery Repairs and Maintenance to Other Assets Pension/Gratuity/Medical expenses Rates and Taxes Rent (Net of Recoveries) Depreciation Medical Expenses Uniform/work clothes Insurance Security Others (Net) Managerial Remuneration : G.75 5.867.36 0. Employee Welfare Expenses Salaries.49 0.258. demurrage charges. Components and Spares 0.04 29. royalties and other matters (ii) Foreign Currency payments for crude 64. Bonus etc.123.62 4.F.15 2.19 42.37 0.72 2.I.43 0.15 1.95 1.04 0.67 2.57 3.38 3.36 42.03 1.14 25.76 17.33 9.05 38.27 23.05 0.50 1.01 0.35 7.59 I.93 0.237. C.37 7.82 0.56 crores (2003-04 : Rs.17 4.72 10.943.59 0.849.39 0. Payment to Auditors: Audit fees Tax audit fees Other Services Reimbursement of expenses Items included under Other Account Heads viz./Crores 2004-05 D. 330.04 0.41 0.95 0.51 5.91 crores) received in Indian currency out of repatriable funds of foreign airlines customers 128 . 5.10 0.07 – E. Wages.53rd Annual Report 2004-05 Statement of Significant Accounting Policies and Notes Forming Part of Accounts Rs. Technical and other services.09 1. Spares and Chemicals Capital Goods.21 43.13 13.86 4.56 24. 87. value of imports during the year (excludes canalised imports): Expenditure in foreign currency on account of : Engineering.01 13.23 42.51 2. H (i) Salary and Allowances Contribution to Provident Fund and other funds Other benefits Raw materials Stores.84 1.02 0.18 41.11 0.09 9.23 1.03 2003-04 0.82 F. Earnings in foreign exchange : (On accrual basis) Export of goods calculated on FOB basis Includes Rs.
76 13.363.391 556 782 5.913 2003-04 (ii) Spare Parts & Components Imported (in %) Imported (in Value) Indigenous (in %) Indigenous (in Value) K. Spare Parts and Components consumed : (i) Raw Materials Imported (in %) Imported (in Value) Indigenous (in %) Indigenous (in Value) 73.502.023 29.62 26.09 13. Bulk Petroleum Products ii.317 261.173 3.676 278.12 42.000.88 48.000. Rubber Processing Oil (b) Lubricating Oils (c) Textile Auxiliaries (d) Insecticides (e) Greases 12.Statement of Significant Accounting Policies and Notes Forming Part of Accounts Rs.863 106 238 3.346 277 20.779 4. Value of Raw Materials.000.26 15.000 319.921 111 677 3.a.811 176.273 12.31 47.60 37.531.52 30.391 556 782 5. Axle Oil v.000 122.50 62. Licensed capacity at year end in Metric Tonnes p.000 122. 13. Carbon Black Feed Stock iv. Greases and Textile Auxiliaries * (c) Hydraulic Brake Fluid and Insecticides * Product manufacturing facilities are interchangeable L.000 319.734 349 14.085 28.85 52.577.46 50.779 4. : (a) Petroleum fuel and lube products (b) Lubricating Oils (c) Textile Auxiliaries (d) Hydraulic Brake Fluid (e) Insecticides (f) Greases Installed capacity at year end in Metric Tonnes per annum as certified by the Management on which the Auditors have relied upon : (a) Petroleum fuel and lube products (b) Lubricating Oils. Lubricating Oil Base Stocks (including Transformer Oil Base Stocks) iii.54 30.062 13.64 4. Production in Metric Tonnes : (a) Petroleum fuel and lube products i.122 129 .913 69.821.603 214.000./Crores 2004-05 J.062 M.173 3.073.36 10.74 5.
59 285 0.17 2332 2.87 3133 19.T.08 (0.53rd Annual Report 2004-05 Statement of Significant Accounting Policies and Notes Forming Part of Accounts N.87 25870 51.90 31283 39. Value M.69 2320 2. sold and stocks during the year : Rs.07 1290 4.70 1.34 1848 7. ii) In respect of Forward Exchange Contracts to be recognised in Profit or Loss for one or more subsequent accounting periods 2003-04 13.T.70 29607 57.T.52 0.97 37 0. i.56 46 0.14 584 2.11 4107. Bulk Petroleum Products Lubricating Oil Base Stocks (including Transformer oil Base stock) Carbon Black Feed Stock Axle Oil Lubricating Oils Textile Auxiliaries Insecticides Greases Automotive Accessories Total M.20 – 56332. Inhibitors and Chemicals: Value (d) Non-Petroleum Products: Value Expenditure incurred on Research and Development : Capital Revenue Interest on Project specific borrowings capitalised Exchange Differences : i) Adjusted in the carrying amount of Fixed Assets during the accounting period. h. Information for each class of goods purchased.30 0. 0.99 1985 9. c. Value M.709.049 83.75 0.52 100 0.47 1.31 0. Value Value 2332 2.57 193 0. Q. M.12 4149.09 22373 86.52 0.84 Purchases 2004-05 14697636 33677.49 372 2.42 38 0.47 48 0.T.21 3777.73 173194 824.80 92.82 66254 142. e.18 38340 98.50 43.90 – – 2004-05 28082980 63703.34 1848 7.61 Sales 2003-04 29227690 55130. d. Value M.15 27664 123.43 31033 61.699. Value 2112103 3961. 2004-05 O.17 725 2.585 48.20 – – – – – – – – – – – – – 33677.29 – 64689.15 27664 123.10 13.99 1.5 b.88 33 0.T.36 76.95 2003-04 2112103 3961.043 20.T.17 725 2.05 – – 2003-04 16921277 30583.14 426 1. R.12 90.17) 0.47 – P. g. Value M.47 48 0.68 0.685 14.79 256572 1005.24 40 0.316./Crores Opening Stock 2004-05 a.12 4149.61 130 .05 – – – – – – – – – – – – – 30583.T.13 31308 155.87 Closing Stock 2004-05 1556197 3876.58 379 2.28 0. Raw Materials consumed: (a) Crude Oil Processed: Tonnes Value (b) Other Petroleum Products : Tonnes Value (c) Additives. Value M. Previous year’s figures are recast wherever necessary for comparison and adjustment.51 28409 32.69 No adjustments for transit/operational/temperature variations/consumption for own operation have been made in regard to quantitative information. f.94 338 0.T.60 49.68 99.56 46 0. Value M.94 2560 16.87 25870 51.942.66 119 0.50 2003-04 1837153 3623.
997.18 10. 2005 is as under : Rs.232.67 3.85 7.64 – 59.52 – 2.504.23 1.58 81.552.84 7.42 – 18.33 2.744.600./Crores 2004-05 Petroleum Other Products Businesses Revenue External Revenue Inter-segment Revenue Total Revenue Result Segment Results Operating Profit Less: Interest Expenditure Prior Year Expenditure Add: Interest/Dividend Income Profit on Sale of Investments Profit before Tax Less: IT(including Deferred tax) Profit after Tax Other Information Segment Assets Corporate Assets Total Assets Segment Liabilities Corporate Liabilities Total Liabilities Capital Expenditure Depreciation 1.121.28 – – – 51.58 1.77 – 2.58 – 59. 2003-04 Petroleum Other Products Businesses Total Total 59.94 16. 3.797.45 17.596.03 1.62 7.744.277.78 16.60 1.63 659.903.121.23 51.076.03 81.161.810.52 17.28 (3.88 3.797.959.959. The Company is engaged in the following business segments: a) Downstream Petroleum i.e. dividend income and investment income) There are no geographical segments.64 – 119.744.Statement of Significant Accounting Policies and Notes Forming Part of Accounts S.744.048.959.32 606.28 51.52 2.322.45) 1. Refining and Marketing of petroleum products.989.640.33 3.65 76.756.06 6.28 2.980.59 1.52 55.84 18.03 941.229.27 1.959.596.88 1.23 – 59.600.23 51. b) Exploration and Production of hydrocarbons. Segments have been identified taking into account the nature of activities and the nature of risks and returns.012.15 – 10.43 1.49 – 1. 131 .63 659.32 606.45) (3.997.58 – – 2.59 941.997.60 363.42 1.322.504.040. Information regarding Primary Segment Reporting as per AS-17 for the year ended March 31.67 7.21 152. Segment Revenue comprises the following: a) Turnover (Net of Excise Duties) b) Subsidy from Government of India c) Net Claim/(surrender to) PPAC/GOI d) Other income (excluding interest income.42 2.997.
21) 0.92 (34.50) 0.045.47) 5.60 659.622.95 1.640.77 (6.64) 1.53rd Annual Report 2004-05 Cash Flow Statement for the year ended 31st March.13) 306.847./Crores 2004-05 Cash Flow From Operating Activities Net Profit before Tax & Extraordinary items Adjustments for : Depreciation/Amortisation Loss on Sale/write off of Fixed Assets/CWIP Provision for assets under reconciliation Interest Expense Interest Income Income from Investment Increase/(Decrease) in Provision for Doubtful Debts/Receivables Dividend Received Exchange rate difference on loans Profit on sale of Investments Operating Profit before Working Capital Changes Increase/(Decrease) in Working Capital : Trade Receivables Other Receivables Other Current Assets Inventories Trade and Other Payables Amounts recoverable from Pool Account Cash generated from operations Direct Taxes paid (Net) Cash Flow before extraordinary items Extraordinary items Net Cash from operating activities (A) Cash Flow From Investing Activities Purchase of Fixed Assets (incl.43 606.47 (817.85) (483.60) (889.65 (103.65 (617.54 (137.93 39.61) 132 .60 78.00 2.50) (1.71 0.64 (0.579.284.318.62) (0.23) 160.33) 0.309.58 2. Capital Work in Progress/excluding interest capitalised) Sale of Fixed Assets Purchase of Investment (Including share application money pending allotment/Adv.82 (629.60) 2.02 81.22) (0.03) (279.01) 2.59 1.19 2. towards Equity) Sale Proceeds of Investments Interest Income Dividend Received Income from Investment Net Cash used in investing activities (B) 1.240.947.26 55.11) 3.69) (291.980.95 2003-04 (1.622.62 0.46 195.21 103.98) (633.17 (51.59 4. 2005 Rs.14 (6.09 (279.23 100.86) 2.67 (902.82) 1.00 1.79 (7.70) 1.64 (78.318.67) (0.71) 10.50 1.
48 1.06 18. LAL Chairman & Managing Director Place : New Delhi Date : May 26.85 2.36 194.21 (142.61 (55.On Current Accounts .796.65) (912.750. 2005 C.17) 4.03 0.10 Net Increase/(Decrease) in Cash and Cash equivalents Previous year’s figures have been regrouped/reclassified wherever necessary. 2005 Rs.73) 56.46 4.47 (4.38 (81. RAMULU Director .Finance 133 .64) (804.05 199.06 201.48 228.36 194.454. B.Others Balances with other Banks Overdrafts from Banks 0.10 1.92) (590.95 0.73) 56./Crores 2004-05 Cash Flow From Financing Activities Proceeds from Calls in Arrear (Net) Loans Repaid Loans Raised Interest Paid on Loans Dividend paid (including dividend distribution tax) Net Cash used in financing activities (C) Net Increase/(Decrease) in Cash and Cash equivalents [(A) + (B) + (C)] Cash & Cash equivalents as on 1st April (Opening) : Cash/Cheques on Hand Balances with Scheduled Banks .Others Balances with other Banks Overdrafts from Banks Cash & Cash equivalents as on 31st March (Closing): Cash/Cheques on Hand Balances with Scheduled Banks .408.74 3.62) 1.On Current Accounts .63 (319.Cash Flow Statement for the year ended 31st March.14 8. (174.51) (577.89 0.17) (171.84) 8.80 196.95 0.85 2.25) (174.86 (8.76) 228.55 (190.17) 2003-04 2.05 199.91) (118.21 (142.76) For and on behalf of the Board M.28) 5.
EXPENDITURE N I L RESERVES AND SURPLUS 8 1 0 1 9 1 6 8 UNSECURED LOANS 1 8 6 5 4 3 7 4 T R O L E U M 4 1 / 6 1 N T S P R O D U C T S ITEM CODE NO.53rd Annual Report 2004-05 Balance Sheet Abstract and Company's General Business Profile I. Thousands) PUBLIC ISSUE N I L BONUS ISSUE N I L II. NARAYANAN Company Secretary 134 . (ITC CODE) 2 7 1 0 0 0 PRODUCT DESCRIPTION : L U B R I C A + TOTAL EXPENDITURE 5 8 4 8 2 2 9 3 2 PROFIT/LOSS AFTER TAX 1 2 7 7 3 3 1 4 DIVIDED RATE % 1 5 0 OF COMPANY (As per monetary terms) INVESTMENTS 1 7 5 6 8 3 8 7 MISC. REGISTRATION DETAILS REGISTRATION NO. GENERIC NAMES OF THREE PRINCIPAL PRODUCTS ITEM CODE NO.R. 2005 C.B. (ITC CODE) 2 9 0 1 2 2 0 0 PRODUCT DESCRIPTION : P R O P Y L E N E M. Thousands) TURNOVER 6 4 6 8 9 5 0 8 2 + PROFIT/LOSS BEFORE TAX 1 6 4 0 6 0 4 0 EARNING PER SHARE IN RS. 3 7 . Thousands) TOTAL LIABILITIES TOTAL ASSETS 1 2 0 0 0 9 4 5 6 1 2 0 0 0 9 4 5 6 SOURCES OF FUNDS PAID-UP CAPITAL 3 3 8 9 2 7 7 SECURED LOANS 3 1 9 9 1 1 7 DEFERRED TAX LIABILITY 1 3 7 4 7 5 2 0 APPLICATION OF FUNDS NET FIXED ASSETS 7 7 3 0 4 8 2 5 NET CURRENT ASSETS 2 5 1 3 6 2 4 4 ACCUMULATED LOSSES N I L IV. RAMULU Director-Finance N. RIGHTS ISSUE N I L PRIVATE PLACEMENT N I L III. PERFORMANCE OF COMPANY (Amount in Rs. 6 9 V. : BALANCE SHEET DATE : 0 8 8 5 8 STATE CODE : 1 1 3 1 0 3 2 0 0 5 CAPITAL RAISED DURING THE YEAR (Amount in Rs. LAL Chairman & Managing Director Place : New Delhi Date : May 26. (ITC CODE) 2 7 1 0 PRODUCT DESCRIPTION : B U L K P E ITEM CODE NO. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in Rs.
000 Equity Shares of Rs. 4. Name of the Subsidiary Company Financial period of the Subsidiary Company ended Total issued Share Capital of the Subsidiary Company Number of shares held in the Subsidiary Company Percentage of shares held in the subscribed capital of the Subsidiary The net aggregate amount. 5.10. of the Subsidiary’s i) ii) Profit/(Loss) for the year ended 31st March.57. of the Subsidiary’s i) ii) Profit/(Loss) for the year ended 31st March. RAMULU Director . so far as it concerns the members of the Company and is dealt with in the Company’s accounts.Statement pursuant to Section 212 of the Companies Act. 3. NARAYANAN Company Secretary 135 . so far as it concerns the members of the Company and is not dealt with in the Company’s accounts.10. 2. 10 each 100% 6. 2005 29. 2005 C.000 Equity Shares of Rs. 2005 Profit/(Loss) of the previous financial years of the Subsidiar y since it became the Company’s Subsidiary NIL NIL For and on behalf of the Board M. The net aggregate amount. 1956 relating to Subsidiary Companies 1. 10 each 29. 2005 Profit/(Loss) of the previous financial years of the Subsidiar y since it became the Company’s Subsidiary NIL Guru Gobind Singh Refineries Ltd.R.B.57. LAL Chairman & Managing Director Place : New Delhi Date : May 26.Finance N. 31st March. NIL 7.
3. 4.3.47 24.86 3.69 0. Fixtures and Office/Laboratory Equipment Transport Equipment Total Previous Year 0.77 15.16 4.11 33.42 0.01 34.04 1.58 7.02 – 0.57 3.39 – – – – 4.3.60 Net Balance as at 31.99 0.39 2.2005 0.04 4.10 19.77 – 0.06 – 0.49 0. Plant and Machinery Furniture. Rs.84 164.50 2.37 0.19 45.10 25.70 – 9.38 3.32 0.89 0.53rd Annual Report 2004-05 Social Welfare Income and Expenditure Account for the Township. Bonus etc.08 23.Freehold Buildings.55 0.55 25.18 43.42 0.15 Depreciation Total and Depreciation Amortisation and for the year Amortisation 2004-2005 upto 31.21 44. Medical and Other Social Welfare facilities for the year ended 31st March.07 1.3. Wages.19 – 0.03 1.36 0.17 EXPENDITURE : Salaries.00 3.64 9.15 4.4.93 0.37 7.2004 – 0./Crores INCOME : Recovery of house rent Recovery of utilities Other recoveries Excess of expenditure over income 2004-05 3.17 5.57 153. Education.59 1.15 2.10 25.55 3.16 5.25 0.22 39. Contribution to Provident Funds Consumption of Stores. 3.59 0.95 1. 2.89 25.95 0. Spares and Chemicals Electricity and Water Repairs and Maintenance to Buildings Repairs and Maintenance to Plant & Machinery Repairs and Maintenance to Other Assets Pension/Gratuity Rates & Taxes Rent Depreciation Medical Expenses Uniform/Work clothes Insurance Security Others 2003-04 2.55 5.66 159.97 164.82 0.61 – 24.01 33.10 19. 2005.75 1.2004 0.01 24.64 1.05 153.55 Net Balance as at 31.15 Additions/ Reclassifications Deductions/ Reclassifications Gross Block at cost as at 31.16 – 6.67 2.72 11.35 7.2005 0.36 0.72 0. Roads etc.61 149.16 SCHEDULE OF FIXED ASSETS (TOWNSHIP) Gross Block at cost as at 1.13 4.02 0.93 4. 136 . Land .61 0.49 1.43 4.2004 1.
Revathy Iyer Principal Director of Commercial Audit & Ex-officio Member. 2005. 2005. Mumbai Place : Mumbai Date : June 24.C & AG's Comments Comments of the Comptroller and Auditor General of India under Section 619 (4) of the Companies Act. Audit Board-II. 2005 137 . 2005) I have to state that the Comptroller and Auditor General of India has no comments upon or supplement to the Auditors’ Report under Section 619(4) of the Companies Act. 1956 on the accounts of Hindustan Petroleum Corporation Limited for the year ended 31st March. 1956 on the accounts of Hindustan Petroleum Corporation Limited for the year ended 31st March. (Addendum to the Directors' Report dated May 26.
50 0.15 1. FINANCIAL POSITION The table below summarises the financial position of the Company under broad headings for the last three years : LIABILITIES Rs.387.69 18.75 5.84 5.32 450.435.85 6.901.42 1.00 142.37 18.552.32 11.754.22 2.44 6.84 18.20 6.08 165.08 165.75 173.21 1./Crores 2002-03 (a) Paid up Capital : (i) Government (ii) Others (b) Reserves & Surplus (i) Free Reserves & Surplus(other than Share Premium) (ii) Share Premium Account (c) Share Application Money Pending Allotment (d) Borrowings from (i) Government of India # (ii) Issue of Debentures (iii) Cash Credit/Overdrafts from Bank (iv) Others (e) (i) Current Liabilities & Provision (ii) Deferred Tax Liability Total ASSETS (f) Gross Block (g) Less : Cumulative Depreciation (h) Net Block (i) Capital Work-in-progress (j) Investments (k) Current Assets.53 6.02 – – 400.72 0.61 201.150.82 6.69 18.346.62 10.63 2.374.150.43 12.43 7.015.048. 2005 by the Comptroller and Auditor General of India.809.04 17.988.544.97 0. Loans & Advances (i) Inventories (ii) Sundry Debtors (iii) Cash & Bank Balances (iv) Loans & Advances (v) Other Current Assets (l) Miscellaneous Expenditures to the extent not written off or adjusted Total Note : # Relending of World Bank loan.11 6.32 5.91 1.85 – – – 319.12 4.73 1.84 2.865.67 1.53rd Annual Report 2004-05 Review of Accounts by C & AG Review of Accounts of Hindustan Petroleum Corporation Limited for the year ended 31st March.64 347. 2005) Note : Review of Accounts has been prepared without taking into account comments under Section 619 (4) of the Companies Act.454.35 – 17.41 1.449.54 862. 1956 and qualifications contained in the Statutory Auditors’ Report.07 1.61 – 0.989.346.18 725.17 4.951.08 165.55 2.84 18.578.569. 2003-04 173. (Addendum to the Directors' Report dated May 26.655.552.122.87 1.400.158.29 197.989.402.756.048.08 2004-05 173.000.00 190.41 – 5.53 1.253.68 496.07 7.62 138 . 1.89 1.06 2.147.319.829.682.393.14 786.943.192.32 – 5.
68 38. RATIO ANALYSIS Some important financial ratios on the financial health and working of the Company at the end of last three years are as under : 2002-03 A. Debt Equity Ratio C. Pvt. 5.)(o/a) 2.00 crores in the equity share capital of South Asia LPG Co.775.440.44 2.27 8.74 15. 2005 as against 21. up to March 31.02:1 2003-04 2004-05 646.85 times as on 31st March.05:1 135.3.02 crores from Pool Accounts towards various pool claims pertaining to the APM period (i. the Company has to receive an amount of Rs. Profitability Ratios (%) a) Profit before tax to i) Capital employed 34.e.19 0.5.02 8. DUES FROM PP&AC As of March 2005.63 9.85 24.02 35. INVESTMENTS The Company has made the following investments : (i) Rs.13 7.49 5. 777.59 17. 2003. (ii) Rs. 139 .71 times as on 31st March. 2002).90 times the paid-up capital as on 31st March.85 2004-05 2.457.742.81 22.90 ii) Net worth iii) Sales b) Net Profit after tax to Net worth 3.97 0. Ltd. RESERVES & SURPLUS The free Reserves and Surplus of the Company were 23.72 7.11 5.081.71 2003-04 1.18 0. Liquidity Ratio Current Ratio (%) B.13 108. 4.353.678.09:1 123. 2004 and 18.06 36.92 6.42 crores in the equity share capital of Guru Gobind Singh Refineries Ltd.35 19.Review of Accounts by C & AG Rs.79 24.36 23.513./Crores 2002-03 (m) Working Capital [k-e(i)] (n) Capital employed (h+m) (o) Net Worth (a+b(i)+b(ii)-l) (p) Net worth per Rupee of Equity capital (Rs.85 19.
00 Total UTILISATION OF FUNDS Public Deposit Repaid Increase in Capital Expenditure Deferred Tax Dividend Paid Repayment of Debentures Increase in working capital Increase in Investments Total 3.154.63 crores respectively. 2003-04 and 2004-05 was Rs. Rs.83 8.00 OIDB Term Loan raised 200.68 1.02 1.94 Adjustment on sale/deletion of Fixed Assets/CWIP 25. 3154.980.903.33 804.13.72 crores.56 crores from internal and external sources were realised and utilised during the year as follows : Rs. 21.66 59.608.53 Share Capital 0.56 2.940. WORKING RESULTS The working results of the company during the last three years are given below : 2002-03 i) Net Sales (excl. 646.37 2.58 respectively.02 crores and Rs.37 79.05 Increase in Bank Loan 177.93 400.21 51.517.83 Short Term Loans raised 510.59 Add : Net Loss on sale/write off of Fixed Assets/CWIP 4.793.60 1.640. 1775. 2513.154.03 Share Premium 0. WORKING CAPITAL i) The working capital of the Company as on 31st March for the year 2002-03. 8.277.53rd Annual Report 2004-05 Review of Accounts by C & AG 6.42 3.56 7.277.345.43 1.18 Redemption of Oil Bonds 300. excise duty & including payments to pool accounts) ii) Profit before tax iii) Profit after tax Rs.33 140 .25 and 26. ii) The percentage of working capital to capital employed during the three years 2002-03. 2003-04 and 2004-05 was 9. SOURCES AND UTILISATION OF FUNDS Funds amounting to Rs.00 513.36 1.411.33 Add : Depreciation 659.537./Crores 2004-05 SOURCES OF FUNDS Funds from operations : Profit after tax 1./Crores 2003-04 2004-05 48.79 2.94 1.
32 9.20 14. 10. Mumbai Place : Mumbai Date : June 24.080.43 12.69 13.67 3. 2005 141 . Finished Goods at the end of the year was equivalent to 25 days’ sales during 2004-05 as against 30 days’ sales during 2003-04 and 26 days’ during 2002-03.15 2003-04 931.65 11. SUNDRY DEBTORS The position of sundry debtors for the last three years ending 31st March. 2005 : Rs.53 110.94 28.07 4. during the last three years 2002-03.72 1. DIVIDEND The proposed dividend for the year 2004-05 is 150% on equity as compared to 220% paid for 2003-04 and 200% paid for 2002-03. spares and packages at the end of 2004-05 represented 303 days’ consumption as against 301 days’ consumption in 2003-04 and 323 days’ in 2002-03.166./Crores 2002-03 891.65 1.19 212.09 Debts outstanding for more than three years 2. The dividend payout ratio after considering the tax on distributed profits. INVENTORY The inventory position as at the end of last three years was as follows : 2002-03 1. calculated as a percentage of total dividend paid/proposed to profit after tax.77 275.96 i) ii) iii) iv) v) Raw Materials Stores & Spares Stock in Process Finished Goods Packages The stock of raw materials at the close of each year was equivalent to about 21 days’ consumption in 2004-05 as against 23 days’ consumption in 2003-04 and 26 days’ consumption in 2002-03.77 31./Crores Rs.83 2004-05 1.24 125.67 The following table indicates the debts outstanding for more than one year as on 31st March.17 7.21 197.23% and 45. Revathy Iyer Principal Director of Commercial Audit & Ex-officio Member. 2005 stood as follows : Year Sundry Considered Percentage Debtors Doubtful & of debtors Provided for to sales Rs.62 11. 2003-04 and 2004-05 was 49.68 4.33 93.107.025.56 1. The stores.42 Rs.17 31.777.09 28.Review of Accounts by C & AG 9./Crores 2004-05 1.13 9.028. Audit Board-II.42% respectively. 44.149.24%.69 2003-04 1./Crores Government Departments Others Total Debts over one year but less than two years 0.85 34.44 Debts over two years but less than three years 0.
00% – 26. 17. 28. 7. Ltd. Mangalore Refinery & Petrochemicals Ltd.1988 Major Shareholdings Nature of operations ONGC HPCL HPCL COLAS – 71.1998 HPCL – 50. Joint Venture 1. Financial/ Strategic Investors – 22.10.1995 Manufacture and Marketing of Bitumen Emulsions & Modified Bitumen To act as nodal agency for developing identified and prioritised petroleum product pipelines in the country 3.50% – 5.03.95% – 50.00% 6.1997 HPCL – 16.00% HDFC – 5. 26.08.00% 142 .00% Exploration and production activities in the oil and gas sector 5.07.00% – 50. Hindustan Colas Ltd.62% – 16.50% – 22. Prize Petroleum Co.00% – 23.00% Other PSUs – 34. 22. Bhagyanagar Gas Ltd.00% HPCL Petronet India Ltd. Petronet India Ltd.00% ICICI & Associates – 45. ONGC Financial/ Strategic Investors – 26.00% – 50.2003 HPCL GAIL AP Govt. 31. 16.11.53rd Annual Report 2004-05 Joint Ventures Sl.00% Refining of petro products 2.07.00% Financial/ Strategic Investors – 50.00% 4.1999 Construction of LPG underground cavern storage of 60000 MT capacity and associated receiving and despatch facilities at Visakhapatnam Distribution and marketing of environmental friendly fuels (green fuels) viz. Ltd.00% – 50. Name of the No.1998 Operation and maintenance of petroleum product pipeline between Mangalore-Hassan-Bangalore – 25. Pvt. Petronet MHB Ltd.05.00% HPCL TOTAL – 50. Date of incorporation 07. CNG and Auto LPG in the state of Andhra Pradesh. South Asia LPG Co.
We conducted our audit in accordance with generally accepted auditing standards in India.M. its Subsidiary and two Joint Venture Companies for the year ended on that date. On the basis of the information and explanations given to us and read with note 6 of Schedule 20 relating to noninclusion of cash flows of certain entities in the preparation of consolidated cash flow statements and note no. its Subsidiary and its interests in Joint Venture Companies. the Consolidated Profit and Loss Account and Consolidated Cash Flow Statement for the year ended on that date annexed thereto. of Hindustan Petroleum Corporation Limited. The audited financial statements of the Subsidiary reflecting total assets of Rs. Raiji & Co. Balse Partner Membership No. evidence supporting the amounts and disclosures in the financial statements. We believe that our audit provides a reasonable basis for our opinion.P. 3. 4. 1. 8 to Schedule 20 relating to accounting for income tax benefits. Mangalore Refinery and Petrochemicals Limited and Petronet India Limited. and in the consideration of separate audit report on individual financial statements. on a test basis. issued by the Institute of Chartered Accountants of India. 2005 and revenue of Rs. 2005. its Subsidiary and Joint Venture Companies. 2005 and Nil revenue for the year ended on that date and of four of the Joint Venture Companies reflecting total assets of Rs. Our responsibility is to express an opinion on these financial statements based on our audit.21 crores as at March 31.71 crores for the year ended on that date. These financial statements are the responsibility of Hindustan Petroleum Corporation Limited’s management. We have audited the attached Consolidated Balance Sheet of Hindustan Petroleum Corporation Limited. Chartered Accountants Vinay D. in all material respects. its Subsidiary and its Joint Venture Companies for the year ended on that date. 30547 Place : New Delhi Date : May 26. as well as evaluating the overall financial statements. An audit includes examining. For N. We report that the consolidated financial statements have been prepared by the Company in accordance with the requirements of Accounting Standard 21 “Consolidated Financial Statements” and Accounting Standard 27 “Financial Reporting of Interests in Joint Ventures”. We have also relied on unaudited provisional financial statements of two other Joint Venture Companies. its Subsidiary and its Joint Venture Companies as at March 31. These Standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared. 47. and in the case of the Consolidated Cash Flow Statements.46 crores as at March 31. 305. of the consolidated results of operations of Hindustan Petroleum Corporation Limited. 2005. in accordance with an identified financial reporting framework and are free of material misstatements. Chartered Accountants Nimesh Bhimani Partner Membership No. 5. for the purpose of our examination of the consolidated financial statements. Kapadia & Co. 39434 2.85 crores for the year ended on that date. have been audited by other auditors on which we have relied. its Subsidiary and four Joint Venture Companies and unaudited provisional financial statements of two Joint Venture Companies. (c) For G. An audit also includes assessing the accounting principles used and significant estimates made by management.414. of the consolidated cash flows of Hindustan Petroleum Corporation Limited. reflecting total assets of Rs. viz. on the basis of separate audited financial statements of Hindustan Petroleum Corporation Limited. 230.168. which we have signed under reference to this report. in the case of the Consolidated Profit and Loss Account. its Subsidiary and its interests in Joint Venture Companies as at March 31.42 crores as at March 31.Auditors' Report Auditors’ Report to the Board of Directors of Hindustan Petroleum Corporation Limited on the Consolidated Financial Statements of Hindustan Petroleum Corporation Limited. the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) in the case of the Consolidated Balance sheet. 2005 and revenues of Rs. in our opinion. 2005 143 . of the consolidated state of affairs of Hindustan Petroleum Corporation Limited. 3. 1.
692. Loans and Advances : a) Inventories b) Sundry Debtors c) Cash and Bank Balances d) Other Current Assets e) Loans and Advances Less : Current Liabilities and Provisions : a) Liabilities b) Provisions 5 13.175.516.06 974.87 5.208.40 2.32 0.601.38 2.688.95 2003-04 340.308.373.15 5.95 14.874.19 1.924.61 144 .010.350.569.81 10.09 8.38 8.27 37.94 2.91 6.929.94 Net Current Assets Miscellaneous Expenditure to the extent not written off or adjusted : – Expenses including commission or brokerage on underwriting or subscription of shares Total NOTES FORMING PART OF CONSOLIDATED ACCOUNTS 20 M.50 1.R.008.66 810.716.40 3 4 616.81 7.44 1.62 1.747.87 22.B.61 8.239. RAMULU Director-Finance N.49 8.92 1 2 2004-05 340.27 661.20 9. NARAYANAN Company Secretary Place : New Delhi Date : May 26.898.942. KAPADIA & CO.53rd Annual Report 2004-05 Consolidated Balance Sheet as at 31st March. RAIJI & CO.349.153.43 11./Crores SCHEDULE SOURCES OF FUNDS Shareholders’ Funds : a) Capital b) Reserves and Surplus Shares Application Money Pending Allotment Loan Funds : a) Secured Loans b) Unsecured Loans Deferred Tax Liability Total APPLICATION OF FUNDS Fixed Assets : a) Gross Block b) Less : Depreciation c) Net Block d) Capital Work-in-Progress Investments Current Assets.011.956.411.984.46 7.11 11.15 939.666.215. 2005 Rs.13 6 7 8 9 10 11 12 8.865.12 12.P. 2005 FOR G.648.712. BALSE Partner 2.85 13 6.07 1.884.28 7.15 6.91 0.67 7.19 211.84 977.50 2. Chartered Accountants NIMESH BHIMANI Partner FOR N.16 2.M.52 221.35 8.569.74 12.56 1.52 1.142.128. LAL Chairman & Managing Director C.60 7.13 1.605.19 5.351.648. Chartered Accountants VINAY D.73 12.
44 68.57) 1. 2003-04 : EPS = Net Profit . RAIJI & CO.61 2.87 4.067.55 1.800.88 5.55 94.28 5.96 82.08 1.51 52. 2005 Rs.508. no. Chartered Accountants VINAY D.74 0.220.43 33.90 16.89 30.97 576.81 – 169.04 71.R.415. KAPADIA & CO.38 5.00 6. 1.17 (76.M.871.Rs.35 954.30 14 15 16 17 18 (2004-05 : EPS = Net Profit .38 63.49 0.51 100.69 (147.893 crores.88 – 1.68 371.00 723.153.328. Chartered Accountants NIMESH BHIMANI Partner FOR N.51 58.63 67.339.26 486.023.88 543.359. of shares . BALSE Partner 145 .38 1.86) 536.P.57 128.60 6.00 203.20 (0. of shares .212.15 127.67 340.677.960.64 95.73 133.87 crores/Weighted avg.303.967.018.415. RAMULU Director-Finance N.975.811.64 62.205.21) 3.Consolidated Profit and Loss Account for the year ended 31st March. LAL Chairman & Managing Director C.38 41.583.Rs.B.991.51 25.33 53.19 5.00 160.25 602. 2005 FOR G.384.05) 1.64 5.33.68 23.38 61.64 crores/Weighted avg.67 PROFIT FOR THE YEAR BEFORE PRIOR PERIOD ADJUSTMENTS AND TAXES PRIOR PERIOD DEBITS/(CREDITS) (NET) 19 PROFIT BEFORE TAXES PROVISION FOR CURRENT TAXATION PROVISION FOR DEFERRED TAXATION (NET) PROVISION FOR TAXATION IN EARLIER YEARS WRITTEN BACK PROFIT AFTER TAXES BALANCE BROUGHT FORWARD Transfer from Debenture Redemption Reserve PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATED FOR : General Reserve Transfer to Debenture Redemption Reserve Interim Dividend Proposed Final Dividend Tax on Distributed Profits Market Development Fund BALANCE CARRIED FORWARD EARNINGS PER SHARE (in Rs./Crores SCHEDULE INCOME Sale of Products Less : Excise duty Paid Net Sales Net Recovery from/(Payment to) Industry Pool Accounts Recovery under Subsidy Schemes Other Income INCREASE/(DECREASE) IN INVENTORY EXPENDITURE AND CHARGES Purchase of Products for resale Raw materials consumed Packages consumed Duties applicable to products Transhipping Expenses Payments to and provisions for Employees Other Operating Expenses Depreciation/Amortisation Interest Miscellaneous Expenditure written off 2004-05 68.887 crores) NOTES FORMING PART OF CONSOLIDATED ACCOUNTS 20 M.536.66 190.228.89 675.77 2003-04 58.367.975.23 94. 1.24 (7.239.53 319.89 390.19 16.47 51.) 1.439.19 736.51 6.30 1. no. NARAYANAN Company Secretary Place : New Delhi Date : May 26.78 1.33.669.25 – 5.153.871.
30.014.10/.33 339. C.60 16.51 7.72 14.00 116.each fully paid up Less : Calls unpaid by Others Non-Cumulative Redeemable Preference Shares 2003-04 0.60 100.31 1.50.72 13.41 100.30 5.40 338.49 2.40 886.00 100.81 1.43 338.25 350.175.33 339.048. 339.33 0. Authorised : 75.90 1.30.46 B.93 1.000 Equity Shares of Rs.each Issued : 33.00 – 100.81 146 .25 350.52 91.11 5.08 1.10/.56 340.33 0.75 349.each Subscribed & Called up : 33.75 349.10/.30 127.40 695.53rd Annual Report 2004-05 Schedules forming part of the Consolidated Balance Sheet Rs./Crores 2004-05 1. RESERVES AND SURPLUS Share Premium Account As per the last Balance Sheet Less : Calls Unpaid Debenture Redemption Reserve As per the last Balance Sheet Add :Transfer from Profit & Loss Account Less :Transfer to Profit & Loss Account Capital Reserve Market Development Reserve General Reserve As per the last Balance Sheet Add :Transfer from Profit & Loss Account Profit & Loss Account Surplus as per Accounts annexed 1.92.000 Cumulative Redeemable Preference Shares of Rs.41 190.20 1.08 1.000 Equity Shares of Rs.00 0.89 886.38 1.00 0.048. CAPITAL A.60 25.000 Equity Shares of Rs.00 339.93.960.each 34.00 – 0.011.034.56 340.035. 100/.93.38 8.153.
79 – 166.01 1.72 237. 2007 with an option for early redemption of debentures at par on February 4.17 123.06 130. 2005 (Secured against certain immovable properties of the Company) Overdrafts from Banks Rupee Term Loan Long Term Loans from Banks Interest accrued and due Foreign Currency Loan Others 2003-04 – 320.688. 66.97 10.00 142. UNSECURED LOANS Fixed Deposits From Oil Industry Development Board (Due for Repayment within one year Rs.99 977.98 1.16 400.97 0.80 1.Schedules forming part of the Consolidated Balance Sheet Rs.94 147 .50% Secured Non-Convertible Debentures redeemable at par on February 4./Crores 2004-05 3.66 crores 2003-04 : Rs.40 583.45 2.11 200.83 16. Nil) Foreign Currency Loans Advance towards Equity Interest Accrued & Due Short Term Loans From Banks Sales Tax Deferment Loan Others 0.05 1.056.78 254.91 41.13 4.00 2.25 2.73 25.95 616. SECURED LOANS Debentures 8.00 1.308.63 39.55 79.52 32.13 48.88 1.40 1.667.
59 65.67 50.99 5.40 740.59 8.11 45.85 6. INTANGIBLE ASSETS Right of Way Technical/Process Licences Software 10.13 5.55 274.03 883.53rd Annual Report 2004-05 Schedules forming part of the Consolidated Balance Sheet 5.85 4.61 – 7.78 20.71 101.100.51 79.67 1. 3.75 5.20 – – 71.03 0.48 127.14 13.80 441. 2.20 5.56 – 1. 9.44 21.03 82.010.39 974.21 146. Fixtures and Office/ Laboratory Equipment Transport Equipment Unallocated capital expenditure on Land Development 263.43 14.88 8.675.66 1.60 14.32 656.49 27.712.93 122.33 3.76 3.19 181.09 2003-04 532./Crores Net Block as at 31-03-2005 Net Block as at 31-03-2004 A.63 14.27 10.13 0.54 – – 0.83 – 7.712.46 2.82 0.85 141.79 – 48. 7.20 12.32 271.980.865.851.37 11.64 6.389.49 595.87 12.18 0.37 5. 6.30 – 733.19 12.64 4.36 984.070.822.69 0.32 1.71 859.51 41.092.19 679.80 24.82 60.61 169.27 5.82 27. 3.04 0.81 11.01 0.84 20.153.75 573.93 775.90 966. 1.91 4.24 26.874.31 91.03 0.735.46 249.90 13.70 0.31 105.13 979.884.00 269.092.31 130.87 – 0. FIXED ASSETS Gross Block at cost as at 01-04-2004 Additions/ Deductions/ ReclassifiReclassifications cations Gross Block Depreciation Total at cost and Depreciation as at Amortisation and 31-03-2005 for the year Amortisation 2004-2005 upto 31-03-2005 Rs.80 482.25 64.126.49 22.20 13.59 11.60 5.26 52.Land Railway Siding and Rolling Stock Plant and Machinery Furniture.832.48 7.23 0.05 – 8.64 106.12 15.66 10.79 – 4.21 1.94 36.865.77 29.19 263.99 – 82. OTHER THAN INTANGIBLE ASSETS Land .79 Total (A) B.66 661.Freehold Roads and Culverts Buildings Leasehold Property .65 89. 2.86 274.684.46 10.50 12. CAPITAL WORK-IN-PROGRESS (at Cost) Unallocated Capital Expenditure and Materials at Site Advances for Capital Expenditure Capital Stores Capital Stores lying with Contractors Capital goods in transit Construction period expenses pending apportionment (Net of recovery) Establishment charges Interest 765.70 5.06 7.75 524. 1.35 148 .27 Total (B) Grand Total [(A) + (B)] Previous Year 2004-05 6.05 6.91 138.357.16 66.28 1.72 4.98 286.36 0.07 147.70 90.87 8.97 – 1. 8.35 6. 5.24 31.41 43.57 42.58 171. 4.
00 0. ½% Debentures of face value of Rs.each fully paid up Unquoted 1. Government Securities of the face value of Rs. Petronet VK Ltd.08 939.239.07 lakhs (2003-04 : Rs. 10.54 0.07 lakhs) 3.02 – 0.0.15 lakhs Rs.16 4.10 lakhs (2003-04 : Rs. Scooters India Ltd. 10/.00 0. Petronet CCK Ltd.15 149 . 0. Petronet MHB Ltd. 5% Debentures of face value of Rs. 0. Government Securities of the face value of Rs.10 lakhs) 4.Schedules forming part of the Consolidated Balance Sheet Rs.47 939.10 lakhs) On hand . 3.54 1.62 0.0.05 4.05 4.Rs.05 0. 0. Petroleum India International (AOP) Contribution towards Seed Capital Total (B) Total Investments [(A) + (B)] Less : Provision for loss on Investments 2003-04 931.96% Oil Companies Government of India Special Bonds 2009 Unquoted 1.07 lakhs Rs.62 0.16 4. Total (A) B. 2.01 0. 100/. 0. Petronet CI Ltd.15 – 0. 4.14 lakhs (2003-04 : Rs. 0. East India Clinic Ltd. INVESTMENTS (Long term. 0. TRADE INVESTMENTS Quoted 1.02 crores Deposited with Others On hand . 0.16 0.47 1. 0.each fully paid up Rs.14 lakhs) 2.15 lakhs) 1. 1.25 lakhs) 2.01 – – – – – – – – – 0.Rs.05 0.000 Equity Shares of Rs. 6.239.17 1.10 lakhs (2003-04 : Rs.231. 0. OTHER INVESTMENTS Quoted 1.15 lakhs (2003-04 : Rs. Shushrusha Citizen Co-operative Hospital Limited 100 Equity Shares of Rs. 0.16 0. 0.24 lakhs Deposited with Others ./Crores 2004-05 7.08 1. at Cost) A.02 – 0.17 939. 0.239.25 lakhs (2003-04 : Rs. 0. 0.Rs.
54 296.006.28 1.53rd Annual Report 2004-05 Schedules forming part of the Consolidated Balance Sheet Rs.52 1.171.07 4.04 15.876.215.03 10. SUNDRY DEBTORS (Unsecured) Over six months : Considered good Considered doubtful Others : Considered good Considered doubtful Less : Provision for Doubtful Debts 317.09 crores) 1.98 – 1./Crores 2004-05 8.06 1.04 1. (Maximum Balance during the year Rs.13 crores.38 150 .605.25 31.24 0.75 0.11 0.254.94 7.61 8. 0.10 203.089.56 29. CASH AND BANK BALANCES Cash on hand Cash & Cheques Awaiting Deposit With Scheduled Banks : On Current Accounts On Non-operative Current Accounts On Fixed Deposit Accounts With Others : In Current Account with Municipal Co-operative Bank Ltd.08 5. 2003-04 : Rs.31 6.250.28 116.32 0.25 0.008.85 199.48 5.91 11.50 221. INVENTORIES Raw Materials Finished Products Stock in Process Packages Stores and Spares 1.44 39.25 1.54 29.44 9.142.19 10.05 52.13 132.241. 0.08 13.329.97 897.04 1.489.62 0. OTHER CURRENT ASSETS Interest accrued on Bank Deposits and Investments 0.65 219.50 2003-04 211.90 4.13 1.22 5.
considered doubtful : Accounts Receivable & Deposits Less : Provision for Doubtful Receivables 367.951.92 40.81 13.04 37.28 36.64 39. 299.65 1./Crores 2004-05 12.19 B.249.56 0.91 4.51 820. considered good : Advances recoverable in cash or in kind or for value to be received Interest Accrued thereon Unsecured.17 4. 151 .59 1.695.00 58.33 97.549. Current Liabilities Sundry Creditors i) Total outstanding dues of small scale industrial undertakings ii) Total outstanding dues of creditors other than small scale industrial undertakings Deposits from Dealers/Consumers for LPG Cylinders Other Deposits Accrued Charges/Credits Interest accrued but not due on loans Interest accrued and due on Unpaid Debentures Preference share capital redeemed remaining unclaimed/uncashed Unclaimed dividend * Unpaid matured fixed deposits Unpaid matured debentures Other Liabilities Provisions Provision for Tax (Net) Proposed Dividend on Preference Shares (Rs.373.69 810.94 * No amount is due as at the end of the year for credit to Investors’ Education & Protection Fund.14 – 340.18 0.80 2.79 10.80 200.45 101.411.601.Schedules forming part of the Consolidated Balance Sheet Rs.38 4.05 0.94 348.52 489.697.692.20 2003-04 4.33 47.36 2.66 2.206. 1.02 21.15 933.273.45 3. 1695) Proposed Dividend on equity shares Provision for Gratuity/Pension Provision for other retirement benefits Tax on Distributed Profits 363.16 – 543.90 6.23 2.86 5.208.04 95.01 10.36 2.38 108.Customs.19 1.41 62.22 69. 2003-04 : Rs.45 2.39 1.48 832.747.91 21.07 2.31 102. CURRENT LIABILITIES AND PROVISIONS A.82 2.08 86.04 6.82 2.67 7.484.80 1.956.84 – 2.28 7.46 1.929.82 169. Other Deposits Prepaid Expenses Amounts recoverable from Pool Account Advance towards Equity Share Application Money Pending Allotment Other Accounts Receivable Unsecured.30 52.73 7. Port Trust etc. considered good : Advances recoverable in cash or in kind or for value to be received Balances with Excise.01 10.79 914.00 67.77 57. LOANS AND ADVANCES Secured.91 3.
29 723.250.65 4.88 43.20 – 157.469. OTHER INCOME Interest (Gross) : On Investments On Deposits On Staff Loans On Customers’ Accounts On Others Dividend income Share of Profit from Petroleum India International (AOP) Rent Recoveries Export benefit under duty free entitlement scheme Difference on payment on sales tax deferral loan Profit on sale of Investments Exchange rate variation (Net) Miscellaneous Income 74.60 78.36 34.35 219.38 15.77 4.33 – 145. Bonus.76 4.65 4.83 390.62 4.15 576.34 486.82 152.31 14.31 23.84 18.53rd Annual Report 2004-05 Schedules forming part of the Consolidated Profit and Loss Account Rs.80 40. INCREASE/(DECREASE) IN INVENTORY Closing Stock : Stock in Process Finished Products Less : Opening Stock : Stock in Process Finished Products 296. Contribution to Provident Fund Pension.47 27.71 0.11 22.81 23.250.08 379.61 4.17 – 6.241.33 160.07 4.60 371.43 16.850. PAYMENTS TO AND PROVISIONS FOR EMPLOYEES Salaries.20 250.82 35.07 4. Gratuity etc.72 227.54 4. etc.02 17.78 0.33 2003-04 152 .538.94 107.64 9.89 86.078.20 333.83 120.53 153. Voluntary Retirement Compensation Employee Welfare Expenses Less : Recoveries 461.72 68.67 33.15 219.85 4.98 164.68 4.78 26./Crores 2004-05 14.99 – 1.53 3.469. Wages.66 74.98 3.18 41.
Schedules forming part of the Consolidated Profit and Loss Account Rs.75 0.04 56.24 954.23 – – (3./Crores 2004-05 17.66 133.18 43.50 58.07 – 39.52 94.05) – (76.89 2003-04 153 .19 18.17 3.69 23.95 3.72 – 171.87 9.92 169.14 1. INTEREST On Long Term Loans On Short Term Loans On Overdraft from Banks On Fixed Deposits Others 39.13 7.05) – (0.70 10.99 78.81 1.10 – 0.26 16.13 4.32 3.07) 5.46 1.21) 55.26 11.15 1.13 11.79 168.96 11.72 81.72 95.30 57.72 1.19 74.22 – 10.10) – 27.05 60.51 37.13 0.21) (76.84 0.28 369.29 238.16 0. Spares and Chemicals Power and Fuel Less : Fuel of own production consumed Repairs and Maintenance to Buildings Repairs and Maintenance to Plant & Machinery Repairs and Maintenance to other assets Insurance Rates and Taxes Equipment Hire Charges Rent Travelling and Conveyance Printing and Stationery Electricity and Water Charities and Donations Loss on Sale/write off of Fixed Assets/CWIP Stores & spares written off Write off of Goodwill on acquiring LPG Business of PITCL & DGL Diminution in Value of Investment Provision for Doubtful Debts Provision for doubtful Receivables Receivables written off Provision for Doubtful Receivables written back Provision for assets under reconciliation Security Expenses Advertisement & Publicity Consultancy and Technical Services Exploration Cost Sundry Expenses and Charges (Not otherwise classified) 74.76 21.328.28 19.060. OTHER OPERATING EXPENSES Consumption of Stores.31 32.37 3.80 6.80 59.22 949.10 8.47 (0.00 961.05 4.13 0.81 56.76 15.92 128.18 1.66 101.076. PRIOR PERIOD DEBITS/(CREDITS) Interest on Deposits Raw Materials consumed (0.30 7.
53rd Annual Report 2004-05 Notes forming part of Consolidated Financial Statements 20.00 2003-04 43. Basis of preparation The company has prepared the consolidated financial statements by consolidating its accounts with its wholly owned subsidiary Guru Gobind Singh Refineries Limited in accordance with Accounting Standard 21 (Consolidated Financial Statements) and its Joint Ventures in accordance with Accounting Standard 27 (Reporting for Financial Interest in Joint Ventures).043.89 – 0.646.51 – 154 .00 50. Cash flow statements of Joint Ventures for which the provisions of preparation of cash flow statement is not applicable have not been included in the Consolidated Cash Flow Statement. Companies included in Consolidation Subsidiary Guru Gobind Singh Refineries Limited Joint Ventures Hindustan Colas Limited South Asia LPG Company Pvt.00 16. in accordance with Generally Accepted Accounting Principles in India. 2005 1. 5.40 13. 7.00 50. Principles of Consolidation The financial Statements of all these companies are prepared according to uniform accounting policies. Limited Prize Petroleum Company Limited Mangalore Refinery and Petrochemicals Limited Bhagyanagar Gas Limited Petronet India Limited Petronet MHB Limited 4.71 – 5.00 Other Significant Accounting Policies and additional information The other significant accounting policies have been set out in the notes to accounts of the parent company Hindustan Petroleum Corporation Limited as the same have been applied to the accounts of the parent.35 – 0. Figures pertaining to the Subsidiary company and Joint Ventures have been reclassified wherever to conform to the Company’s Financial Statements. 2. subsidiary and joint ventures. Related Party disclosure: Rs. 3. 6.00 50. Notes forming part of the Consolidated Financial Statements for the year ended 31st March.53 5.95 25. Additional information not impacted by consolidation is also set out in the notes to the accounts of the parent company.00 16./Crores Joint Venture Companies 2004-05 Sales Purchases Sale of Assets Dividend Investment Advance towards equity 91.53 5.00 26. % Holding 100.
83 4.Human Resources Shri C.98 0. Ltd. The Parent Company (Hindustan Petroleum Corporation Limited) has been consistently following a policy of accounting for income tax benefits in the year in which the benefit is allowed in view of the past experience of uncertainties surrounding the claim for tax benefits.83 2003-04 417. Director . Lal.49 Joint Venture Companies: Mangalore Refineries and Petrochemicals Ltd.81 9.44 0.34 2./Crores Joint Venture Companies 2004-05 Share application money pending allotment Interest Services Others Interest paid Services received Closing balances Managerial Remuneration The names of parties are as follows : – 0.19 706.10 1..52 crores attributable to the said Tax benefit. A. Previous year’s figures have been regrouped/reclassified wherever necessary. Petronet India Ltd. Ramulu. Pvt. Key Management Personnel: Shri M.Refineries Shri Arun Balakrishnan. 47.50 (240.Finance Shri S. M/s Colas SA.. Roy Choudhury. Prize Petroleum Co. Colasie. Mathur.98) 0.01 1. 155 ./Crores 2004-05 10. Director. Bhagyanagar Gas Ltd. Petronet MHB Ltd..46 – – – 0. Hindustan Colas Ltd.. Director . Ltd. iv.58 39. Estimated amount of contracts remaining to be executed on Capital Account not provided for No provision has been made in the accounts in respect of the following disputed demands/claims since they are subject to appeals/representations and a substantial portion thereof is recoverable from Pool Account i. B. being the First Year for which the claim was made. has continued with the conservative accounting treatment for the subsequent years. Director.. S.05 910.Marketing (from May 10. B.38 551.73 68. 2004) 8.61 2003-04 9.99 1.. keeping in mind the past practice. Sales Tax/Octroi Excise/Customs Land Rentals & Licence Fees Others 632. The Parent Company while writing back the provision of Rs. Chairman & Managing Director Shri D. South Asia LPG Co.192.. Rs.Notes forming part of Consolidated Financial Statements Rs. During the year. M/s. the Parent Company upon completion of assessment for the Financial Year 2001-2002 (Assessment Year 2002-2003) was granted deduction for claim under Section 80 IB.81 33. iii.80 5.60 32. ii.
61 1. Enhancement of Compensation against land acquired viii.63 12.80 28.10 267.65 – 193. Excise/Customs iv.58 33. Act.75 173.99 2.72 18.571. E.26 – – 0.66 40.53rd Annual Report 2004-05 Notes forming part of Consolidated Financial Statements Rs.35 25. F.09 0. Claims against the Corporation not acknowledged as debts vii./Crores 2004-05 C.26 0.02 0.350.18 2003-04 69. Guarantees on behalf of others vi.19 128.629.07 0.14 0.02 0.03 0.23) 156 .71 0.64 112.11 14.48 184.40 1.25 (1.34 1.17 0.T.617.02 267. Sales Tax/Octroi iii.61 69.13 244.48 2.72 0.13 D. Income Tax ii.40 – 49.06 0.349.00) 13.05 0. 1961 Unabsorbed Losses and Allowances Others Total Deferred Tax Liabilities Depreciation Lease Finance Others Total Deferred Tax Asset/(Liability) 25. Others Payment to Auditors : – Audit fees – Tax audit fees – Other services – Reimbursement of expenses Managerial Remuneration : – Salary and Allowances – Contribution to Provident Fund and other funds – Other benefits Deferred Tax Assets/(Liabilities) arising due to timing differences comprises of : Deferred Tax Assets Provision for Gratuity/Pension Provision for Medical Benefits Provision for Leave Encashment Expenditure under Section 35D of the I.90 190.08 1.672.01 0.02 1.27 13. Contingent Liabilities not provided for in respect of i. Service Tax ix.68 323.61 (1.65 0.55 0. 12.54 192.92 173. Employee Benefits/Demands (to the extent quantifiable) v.41 190.
081.671.67 (917.15 120.208.71 0.82 (1.30 1.21 104.890.403.59 2.95) – 2.17 2.47) 5.Consolidated Cash Flow Statement for the year ended 31st March.302.30 2003-04 3.13 (6.68 (642.62) 157 .784.594.60 81.67) 7. Capital Work in Progress/ excluding interest capitalised) Preliminary expense Sale of Fixed Assets Purchase of Investment(Including Share Application money pending allotment/Adv.03) (402.13) 306.27 3.19 (0./Crores 2004-05 Cash Flow From Operating Activities Net Profit before Tax & Extraordinary items Adjustments for : Depreciation/Amortisation Deletion of Fixed Assets/CWIP Interest Expense Interest Income Income from Investment Provision for Doubtful Debts Dividend Received Provision written back Foreign exchange gain Profit on sale of Investment Misc.784.57 671.42 195. Expenses to the extent written off (Public Issue Expenses) Operating Profit before Working Capital changes Increase/(Decrease) in Working Capital : Trade Receivables Other Receivables Other Current Assets Inventories Trade and other Payables Amounts recoverable from Pool Account Cash generated from operations Direct Taxes paid (Net) Cash Flow before extraordinary items Net Cash from operating activities (A) Cash Flow From Investing Activities Purchase of Fixed Assets (incl.71) (2.27) 10.88 (7.56 (81.236.594.40 42. 2005 Rs.62 (618.16) 162.36) (6.98 724. towards equity) Sale proceeds of Investment Interest Income Dividend Received Income from Investment Net Cash used in investing activities (B) 1.94 (104.24) (0.83 – (0.45 118.15) 2.37 0.60) 5.09 100.38) 1.812.09 (313.82 1.13) – 5.19 2.47 (833.59 4.21) (541.80) (1.80 – 1.10) (489.52) 2.22 (151.54) – 1.136.98) (143.13 (0.72 (260.21) 0.80) 1.85) (907.55) 0.64 (34.
46) (182.68) 233.On Current Accounts .94 5.79 8.67 (142.95) 1.805.03) (912. RAMULU Director .89 0. LAL Chairman & Managing Director Place : New Delhi Date : May 26.37 203.504.73) 64.22 (190.18) 4.74) Net Increase/(Decrease) in Cash and Cash equivalents 1.27 3.00 0.57 (129.72) (859.25 3. 2005 Rs.99 (123.73) 64.04) (4.) and its Joint Ventures ( Mangalore Refinery and Petrochemicals Ltd.17) (170.13) 2003-04 22.06 202. 2005 C. Consolidated Cash Flow Statement for the year is for HPCL. B.698.81 197.On Current Accounts .Finance 158 .53rd Annual Report 2004-05 Consolidated Cash Flow Statement for the year ended 31st March. 2.17 (319. (182.its wholly owned Subsidiary (Guru Gobind Singh Refineries Ltd.Others Balances with other Banks Overdrafts from Banks 1. For and on behalf of the Board M.48 4.03 0.20) (805.05 207.37 203.68) Figures have been regrouped/reclassified wherever necessary.51) (717.91) (117.48) 8.73 (0.67 (142.06 19.00 0.Others Balances with other Banks Overdrafts from Banks 1./Crores 2004-05 Cash Flow From Financing Activities Proceeds from calls in Arrears (net) Proposed Public issue expenses Loans Repaid Loans Raised Interest paid on loan (including interest capitalised) Dividend paid Net Cash used in financing activities (C) Net Increase/(Decrease) in Cash and Cash equivalents [(A) + (B) + (C)] 4.74 Cash & Cash equivalents as on 1st April (Opening) : Cash/Cheques on Hand Balances with Scheduled Banks . and Hindustan Colas Ltd).89 Cash & Cash equivalents as on 31st March (Closing): Cash/Cheques on Hand Balances with Scheduled Banks .28 – (8.94 235.25 3.05 207.633.
It has thus facilitated an integrated thinking process and 159 . etc.Corporate Governance Corporate Governance in a formal way was made applicable to Indian Corporates from the year 1999-2000 by SEBI. etc. through the Listing Agreement with the Stock Exchanges. at the apex level is the HPCL Board. Decision making process : Like any other corporate. This group discusses important issues concerning the organization. A cross section of the audience at the 52nd AGM of the Corporation The Corporation has constituted recently an Executive Council comprising of C & MD. even though for HPCL it was applicable from 2000-01. and Parliamentary Committees. The Board has constituted several sub-committees. the HR Committee. such as the Committee of Functional Directors (CFD). the Audit Committee. Comptroller and Auditor General of India (CAG). Majority of the members of the Committees except CFD are Independent Non-Executive or Government nominated directors with the whole time directors playing a facilitating role. HPCL started Corporate Governance reporting from the year 1999-2000. the Investor Grievance Committee. Being a Government Company. lays special emphasis in conducting its affairs within the framework policies. The composition of these Committees is given in this Report. These practices form an integral part of the Company’s Governance Culture. analyse the same and recommend the ‘way forward’ in respect of matters discussed. the Investment Committee. mutual support of functions and joint deliberations on issues which has enhanced further the decision making processes. the Central Vigilance Commission (CVC). HPCL. The meetings of these committees are convened on need basis and minutes of these meetings are placed for information of the Board. However. The emphasis laid by this group is on team approach. its activities are monitored by several external agencies like the Statutory Auditors. internal and external regulations and in a transparent manner. the Functional Directors and the SBU Heads of the Corporation.
Customers and other stakeholders based on the basic principles of Corporate Governance i. Purchase Manual : This Manual lays down elaborate procedures to be followed while undertaking purchases and in finalisation of contracts. the purchasing authorities at various levels. Purchase Manual. HR etc. etc... transparency. Chart of Accounts.e. Contracts Committee. viz. Bids Committee. Operations and Distribution. Employees. Exercise of Authority : The Corporation has a well documented Limits of Authority Manual. The endeavour always is on building trust with Shareholders. This ensures a transparent and streamlined decision making process adhering to the laid down systems and procedures and thereby leaving no room for arbitrariness. the Executive Committee. The manual is divided into segments representing different functions like Sales. Committee of Functional Directors. Finance. represented by inter-functional groups including Finance. the Contracts Committee. Limits of Authority Manual : This manual (LAM) lays down the authorities that can be exercised at various levels i.) an aligned approach across the Corporation for achieving the Corporate Vision and each one of the aspirational aspects contained in the Vision Statement. Disclosures : Given below are the various informations forming part of Corporate Governance disclosures : 1.e.1 Composition of Board of Directors Executive Directors including Chairman (Whole-time) Non-Executive Government Directors (Ex-officio) Non-Executive Independent Directors (Non-official) Total 5 3 4 12 160 . the Bids Committee and the senior individual positions etc. the Board. for different activities of the Corporation. and provides for a decision making process through various committees as above. Crude and Shipping. etc. It lays down. Capital Projects. disclosure and accountability. The Committee of Functional Directors has delegated further powers to various sub-committees within the organization. BOARD OF DIRECTORS : 1. norms and processes for procurement. Credit Committee. fairness. facilitating the decision making process at various levels within the organization. inter alia.53rd Annual Report 2004-05 Corporate Governance (Contd.
2004 9th December. Petronet MHB Ltd. 2005 8th September. HINCOL 2. 2005 1.Audit Committee a) GGSRL Chairman .E.Sc. 2004 3rd March. of Attendance Meetings at the last AGM Details of Directorships in Companies Memberships held in Committee as specified in Clause 49 of the Listing Agreement FUNCTIONAL DIRECTORS Shri M. GGSRL 2. HINCOL 3.B. 3. SALPG Member .S. Nil Meetings attended held Member . 2. Petronet MHB Ltd. Ltd.Audit Committee a) HINCOL b) Prize Petroleum Co.Corporate Governance 1. 2. SALPG 4. Puri @ DME 1 1 – 1. Roy Choudhur y (*) Mechanical Engineer 7 7 Yes 1. 2004 27th January. MRPL Nil Shri C. HINCOL 4. GGSRL 2. (Chem). ACS. Prize Petroleum Co. Ltd.3 Particulars of Directors including their attendance at the Board/Shareholders’ Meetings Names of Directors Academic Qualifications No. Lal B. PIL 2.2 Board Meetings : (Contd. Nil Shri Arun Balakrishnan B. MRPL 3.Tech. Bhagyanagar Gas Ltd.Audit Committee : GGSRL Shri N. GGSRL 5. Mathur $ B. PGDBM (IIM Ahmedabad) Shri D. Bhagyanagar Gas Ltd.Ltd Shri S. M. PGDBM (IIM Bangalore) ACA. Nil 161 . Ramulu 8 8 Yes 1.E. 2004 29th October. SALPG 1. MBA 8 8 Yes 1.K. of Board No. Prize Petroleum Co. 2004 28th July.) Eight Board Meetings were held during the financial year on the following dates : 23rd April. GGSRL 3. 2004 31st May. (Chem). PGDPE 8 8 Yes 8 8 Yes 1.
(Eco. 5. Eco. Mgmt. IOC 2. BPCL 3. GAIL Chairman Remuneration Committee : a) IOC b) BPCL Member . Mohanty (**) M.D. KSK Energy Ventures Ltd. Rain Calcining Ltd. Shri A. IAS 8 6 – 1.) No. 2. Sankar M.53rd Annual Report 2004-05 Corporate Governance Names of Directors Academic Qualifications (Contd. GGSRL 4.Sc.L.Audit Committee : a) HPCL b) Rain Calcining Ltd.) Ph. B.S.Audit Committee : a) HPCL b) GGSRL c) BLIL Member Shareholders' Investors Grievances Committee : a) HPCL Chairman Remuneration Committee : a) IOC Member . Delhi Power Co. 2.). 3. Srinivasan B. Balmer Lawrie Investments Ltd. of No. BPCL 2.K. (b) PART-TIME DIRECTORS (NON-OFFICIO) Shri T. (Dev.) 5 3 – 1. GGSRL 3. 4. Ltd. IAS 8 6 – 1.Sc.Audit Committee : a) IBP Dr. (Chemistry). c) GGSRL Chairman Shareholders’ Investor Grievances Committee : a) Rain Calcining Ltd. of Attendance Board Meetings at the last Meetings attended AGM held Details of Directorships in Companies Memberships held in Committee as specified in Clause 49 of the Listing Agreement NON-EXECUTIVE DIRECTORS (a) PART-TIME (EX-OFFICIO) Shri M. GAIL IBP BPCL Petronet LNG Ltd. MA (Dev. Srivastava (***) IAS 8 5 – 1. 3. (Civil) Master of Public Administration. Small Scale Sustainable Infrastructure Development Board Member Remuneration Committee : a) Rain Calcining Ltd.Tech. Chairman . 162 .
Catalyst Finance Ltd. 5.Sc. Global Housing Finance Corpn. 2. 2. 8. 8. 6.05. MBA 8 3 – 1.) 8 8 Yes None Shri Rajesh V. b) HPCL Chairman Shareholders' Investors Grievances Committee a) ONGC Chairman Shareholders' Investors Grievances Committee : a) HPCL Shri Raja G. Vestas RRB India Ltd. Kalyani Mukand Ltd.10. Mathur retired on attaining the age of superannuation on 31. Fusion Investments & Financial Ser vices Ltd. Bengal Port Ltd.04 Shri A. Artos Breweries Ltd.) No. K. 10. (Eco. @ (*) (**) (***) $ : : : : : Shri N.K. Nandagopal B. ONGC Shri M. 3. Shah Degree in Mathematics.05 163 .S.A. Puri retired on attaining the age of superannuation on 30.04 Shri S.05 Shri D. Mysore Fruit Products Ltd. Mohanty ceased to be Director effective 29. B. 5. Ltd. S V Sugar Mills Ltd. Roy Choudhur y appointed as Director-Marketing effective 10. 7. (Agriculture) 8 1 – 1. Jeewan Ltd. Sagar Sugars & Allied Products Ltd. 9. Mukand Engineers Ltd.03. Kulkarni M. Mukand Ltd.Corporate Governance Names of Directors Academic Qualifications (Contd.05. Clean Power Ltd. Binny Ltd. Conquest Investments & Finance Ltd. Srivastava ceased to be Director effective 07. of No. 7. 4. of Attendance Board Meetings at the last Meetings attended AGM held Details of Directorships in Companies Memberships held in Committee as specified in Clause 49 of the Listing Agreement Member Shareholders Investors Grievances Committee : a) HPCL Member Audit Committee : a) HPCL b) ONGC Member Shareholders' Investors Grievances Committee : a) Mukand Engineers Ltd.Ltd. Mira Textiles & Industries Ltd. Thirumugal Mills Ltd. 10. 12.04 Dr. 3. 11.04. India Thermal Power Ltd. 9. 4. Mohan Breweries & Distilleries Ltd. Binny Engg. 6.
S. Shri A. L. he has been working as Additional Secretary in the Ministry of Petroleum and Natural Gas. Prior to this. Ph. Administrative Staff College of India. London.K. Advisor to the Government of India. Srinivasan graduated from the Indian Institute of Technology. Gas Authority of India Limited. IBP Co. Srivastava Shri A. In this capacity.National Institute of Rural Development.Sc. DR. He has been a member of the Indian Administrative Service (IAS) since 1971. IIT Madras bestowed the Distinguished Alumnus Award on Shri M. He is also a Director on the Boards of Bharat Petroleum Corporation Limited. on June 05. Srinivasan in the year 2001. has held several positions during his 24 years of service in various Ministries of the Government of India.S. USA in 1987. Jamalpur. Hyderabad. Srivastava.. Since November 2002. Bangladesh. Limited and also a special invitee to the Board of Petronet LNG Ltd. Industries Department. He also worked in the Ministry of Petroleum and Natural Gas as a Director during 1984-89. Shri Lal has a vast and extensive experience in the Petroleum Industry. Shri T. Ltd. USA). He is an Electrical Engineer from IRIMEE. Public Policy Analysis. He has served as Principal. He continues to be associated with several Committees of the Government of India in the areas of Energy Economics. Managing Director of the Chennai Metropolitan Water Supply and Sewerage Board. 2002.A.S. Director General . Srinivasan Shri M. Shri Srinivasan has had varied experience in both Public and Private Sectors. Shri Lal took over as the Chairman and Managing Director of HPCL. Sankar Shri Sankar is a Retd. Ahmedabad. Madras and M. India and also B. Thereafter. Tanzania and North Korea on energy policy and as Leader of the United Nations Team to design Regional Energy Development 164 . Lal Shri Lal is the Chairman and Managing Director of Hindustan Petroleum Corporation Ltd. Shri Lal is a Chemical Engineer from Indian Institute of Technology. he was the Government Director on the Boards of Kochi Refineries Ltd. B.53rd Annual Report 2004-05 Corporate Governance 1. and international organisations in his 35 years career with the Indian Administrative Service. the Government of India. Government of India.4 Profile of Directors : (Contd. IBP Co.D in Economics and M.E. he was Director (Operations) of Madras Refineries Ltd. Joint Secretary in the Ministry of Petroleum and Natural Gas is a member of Indian Administrative Service. In a career spanning 32 years. Mohanty Dr. as Managing Director of Kattabomman Transport Corporation and Project Coordinator of the Tamil Nadu Integrated Nutrition Project. Shri Lal was Director (Refineries) of BPCL. Shri Sankar has held several assignments for the Government of Andhra Pradesh. (now Chennai Petroleum Corporation Limited) before moving back to Bharat Petroleum Corporation Limited as Director (Refineries). and restructuring of Public Enterprises. Some of the other assignments held by him include Managing Director of Tamil Nadu Newsprint and Papers Limited. (Development Economics) (Williams College.) Shri Mahesh B. Mohanty. He has also completed Post Graduate Diploma in Management from AIMA. Sri Lanka. B. He worked as General Manager of Pallavan Transport Corporation.K. He has held senior positions in various Ministries of the Government of India. (Chemistry). Kanpur and a Post Graduate in Management from IIM. Madras in the year 1970 and received his Master’s in Public Administration degree from Harvard University. Shri M.Refineries in the Ministry of Petroleum and Natural Gas. Institute of Public Enterprises. IIT Kanpur has bestowed the distinguished Alumnus Award on Shri Lal in the year 2002. having rich and varied experience of working in the areas of capital market reforms in the Ministry of Food and Consumer Affairs. and Numaligarh Refineries Ltd. Chairman and Managing Director of the Tamil Nadu Industrial Development Corporation Limited and Secretary to the Government of Tamil Nadu. (Mechanical) from the Council of Engineering Institution. He was earlier Advisor . New Delhi.Sc in Development Management. Director. Indian Administrative Service Officer with M..
later obtained a Master’s Degree in Business Administration from the University of California.Corporate Governance (Contd. currently holding the portfolio of Director (Refineries) from 1996. the Confederation of Indian Industry (CII) since 1986. Shah Shri Rajesh V. like Project Management in the U. Gas Price Revision Committee. Bhagawati. He graduated in the second batch in 1966 and was thereafter awarded a Shell Scholarship for postgraduation in Management from the prestigious Loughborough University in U. Shri Sankar has jointly edited two books. He was also the Chairman. He is the Managing Director of Mohan Breweries and Distilleries Ltd. Shri Rajesh Shah has been a strong believer in bringing about change within his company through the application of ‘Total Quality Management’ and has been awarded the Qimpro Gold Standard in 1990 and Platinum Standard in 1994 by Qimpro (an affiliate of Juran International Inc. wrote several book chapters. Kulkarni Shri Raja Kulkarni is an M. Nandagopal is also a member of Cosmopolitan Club and Madras Cricket Club. Sakthi Trust. Chennai. which was a Joint Venture between Esso and the Government of India. He is a Trustee in Sri Ramachandra Medical College and Research Institute.) Programme and the Asian Development Bank’s Regional Energy Survey. He has been a member of the International Young Presidents’ Organisation (YPO) and was also Chairman of the YPO International Conference held in Mumbai in February. Shri Raja G. Shri M. He was the Member of Parliament (Lok Sabha) during the period from 1971 to 1976.K. Coimbatore. He is an Industrialist holding position as Director in various Companies. Nandagopal Shri M. for his contribution in building India Inc. he was holding the portfolio of Director (Personnel and Administration).. In this capacity. 1996 and on the International Board of Directors in the same year. Shah obtained his first degree in Mathematics from the University of Cambridge in 1973. USA).N. he joined the erstwhile Lube India Ltd. He has served on various business councils. Shri Rajesh V. Shri Mathur held various positions in Production Planning. USA. on the formation of Hindustan Petroleum Corporation Ltd. He has also attended the Programme for Management Development (PMD) from Harvard Business School in 1983. Prior to that. Shri Shah is presently the Managing Director of Mukand Ltd. he is responsible for all the diverse activities of the Company. is a past president and has been a member of the National Council of the apex Indian business body. Mathur Shri Mathur is on the Board of Directors of HPCL. he handled senior assignments in the Corporate Planning Division at Headquarters Office looking after the activities of both Refinery and Marketing functions. Shri Mathur is a Chemical Engineer from the Indian Institute of Technology. with Economics from Bombay University and also holding Certificate on International Trade Unionism from Harvard University. He entered the Trade Union Movement in 1944 and has been continuously in the Trade Union Movement for the last 58 years. Oxford in 1985. He was a member of the Power Minister’s Committee of Eminent Persons and the Independent Standing Group under Justice P. Shri Mathur attended various senior management programmes. Shri D. Nandagopal is B.K and Senior Administration Programmes at Henley and also obtained a Diploma in Petroleum Economics from CPS. Berkeley. He has participated in several International Conferences and has undertaken International Study Tours. for the period 1991 to 1996. and articles in national and international journals. On his return.. During his career. which is India’s leading speciality steel producer and executing projects for road construction and power plants.A.. In 1974.Sc (Agriculture) from Agricultural University. Economics and Budgeting and Technical Departments of the Refinery. 165 . Delhi and Mother Service Society.S. Pondicherry. Kanpur. Shri M. Starting his career in the Lube Refinery as a Technical Engineer. co-authored one.
Shri Prabh Das has also worked as a Deputy Secretary/Director in the Department of Ocean Development and Ministry of Commerce. Roy Choudhury is a Mechanical Engineer from the University of Assam. Shri Ramulu successfully handled the initial public issue of HPCL for raising equity capital of Rs. He is a Mechanical Engineer by profession. Bangalore. Director Planning . General Manager . Kharagpur.) Shri Puri was on the Board of Directors of HPCL. Shri S. Roy Choudhury joined HPCL on June 21. Shri Balakrishnan attended a program on Management in the United Kingdom under the Colombo Plan Program. Shri Puri has attended several international conferences and has also attended Advanced Management Programmes in Singapore and Malaysia.HRD and General Manager . He has also completed his Master of Business Administration from Southern Cross University. These include positions such as Regional Manager of Orissa. a subsidiary of Burma Oil Company. Shri S. Projects and Sales Division of HPCL. Shri C. He has held various positions in Marketing and Corporate functions around the country.53rd Annual Report 2004-05 Corporate Governance Shri N. Treasury Operations. Shri C. Roy Choudhury took charge as Director . which was later nationalised. 2004. Shri Puri joined the erstwhile ESSO Standard Eastern in 1964 and held several important positions in the organisation such as Chief General Manager Retail.Tech (Hons). etc. 2004. 1200 crores. Shri Arun Balakrishnan Shri Balakrishnan is currently holding the portfolio of Director .Direct Sales. Ramulu commenced his career in the Petroleum Industry with Caltex India Ltd. He has held various positions in the Company in Refinery. 1982 as Construction Engineer. U.LPG. Shri C.OCC. He is credited with launching a number of successful lubricant brands and for spreading the HP Lubes distributors network in the ASEAN countries. He has worked as a District Magistrate and Collector in Midnapur and Jalpaiguri Districts for a period of 5 years.Finance. Budgetary Control.. Ramulu Shri C. He has also worked as a Special Secretary (Transport) Government of West Bengal and Chief Executive Officer of Calcutta Metropolitan Development Authority. Marketing (Operations). He joined HPCL in 1976 as a Management Trainee. holding the portfolio of Director (Marketing) till his superannuation on April 30.K.. He has also attended various seminars and conferences related to Petroleum and Energy.K. Ramulu is currently holding the portfolio of Director. and General Management including Strategy Planning. His wide experience of over 28 years encompasses Financial Management including Corporate Finance. Shri C. Shri Prabh Das Shri Prabh Das. in 1986. Internal Audit. Government of India. Shri Balakrishnan is a Chemical Engineer and an alumni of the Indian Institute of Management. Puri (Contd. from IIT. General Manager . Management of Joint Ventures. Digboi. General Manager . Roy Choudhury Shri S. Chief General Manager . Joint Secretary of Ministry of Petroleum & Natural Gas is a member of Indian Administrative Service.International Operations. etc.Marketing. Shri S. Australia. Ramulu is a qualified Chartered Accountant and Company Secretary and is a rank holder at the All India level.Lubes among others.Marketing effective May 10. 166 . He is a B.Lubricants and Specialities and Chief General Manager . He commenced his career in the Petroleum Industry with Assam Oil Company.Human Resources. Ramulu secured distinction in MBA from the University of Leeds. He is well known in the Oil Industry for his knowledge and expertise in the cross Country Pipeline Projects before his appointment as Director .
Shri M.A. • • • 167 . He has worked in both Mumbai and Visakh Refineries of HPCL in various capacities and contributed to the growth and development of the refinery operations of the Corporation. a fully owned subsidiary of HPCL and was instrumental in developing the grass root project. Australia. Ministry of Petroleum and Natural Gas.. He also held the position of Deputy Economic Advisor.B. the remuneration payable to its whole-time directors is approved by the Government and advices received through the Administrative Ministry. Department of Economic Affairs. (GGSRL). REMUNERATION OF DIRECTORS : • HPCL being a Government Company. Shri Singh is Joint Advisor (Finance) in the Ministry of Petroleum and Natural Gas. Singh Shri C. Shri Singh also held the position as Deputy Director. He is also a Director on the Boards of Indian Oil Corporation Ltd. Shri C.A. Tankiwala Shri M..) Shri Prabh Das joined the Ministry of Petroleum and Natural Gas as Joint Secretary in March 2003. Tankiwala took charge as Director (Refineries) effective June 1. A. Assistant Controller of Insurance. Singh has held several positions.B. He has had a wide exposure to the Petroleum Industry spanning for more than three decades in Refining Sector. He worked as Officer on Special Duty to the Union Agriculture Minister from March 2003 till April 2004. The remuneration payable to officers below Board level is also approved by the Government of India in line with other Oil Companies. Shri C. Shri M. Singh held positions in the field of Economic Planning and Economic Administration including areas such as Investment Designing. a Graduate in Mechanical Engineering. Singh. Development Strategies and long range forecasting. Shri Singh also held the position of Director/Joint Director. viz. commenced his career in Mumbai Refinery of HPCL. HPCL does not have a policy of paying commission on profits to any of the Directors of the Company.Corporate Governance (Contd. 2005 prior to which he was the Managing Director of Guru Gobind Singh Refineries Ltd. Office of the Economic Advisor from March 1998 to April 1999. Currently. In the last 19 years of service with the Government of India Shri C. and Chennai Petroleum Corporation Ltd. Engineers India Ltd. Department of Industrial Policy and Promotion from April 1999 to March 2003 in the Ministry of Commerce and Industry. Assistant Advisor in the Ministry of Finance. He also served on the Board of Mangalore Refineries and Petrochemicals Limited (MRPL) the first refinery in the Joint Sector as Managing Director (Technical) and ensured that due share was given to MRPL in meeting the country’s energy demand. The Non-official part-time Directors are paid sitting fees for Board Meetings attended by them. B. holds a Master Degree in Economics from Allahabad University and is also a Master of Business Administration from Southern Cross University. Tankiwala. 2.B.
Roy Choudhury ** REMUNERATION Rs. K. staffing and seniority of the official heading the department. Puri * Shri A. Balakrishnan Shri C. Shri T. Shri C.05. B. BOARD SUB-COMMITTEES : A. Sankar is the Chairman of the Committee. S.26.05. • 168 . B. Singh *** * ** Non-Executive Independent Director Non-Executive Government Director Non-Executive Independent Director Non-Executive Independent Director Non-Executive Government Director Shri B. Shri M.340/Rs.458/Rs. 3. B.Marketing effective 10. Shah 4.27. Mohanty ceased to be Director effective 29. Reviewing with the Management. Shri T. including the structure of the internal audit department. Shri M. *** Shri C.286/Rs. Nandagopal ** 5. Shri Rajesh V. Ramulu Shri S. 7. L. Reviewing the adequacy of internal audit function. Lal Shri D. 2005.04. Sankar 2.04. reporting structure.04. L. 11. 10. Mohanty * 3.42. coverage and frequency of internal audit. Statutory Auditors and internal auditors. Discussion with internal auditors on any significant findings and follow up thereon. the adequacy of internal control systems. Singh was inducted in the Audit Committee as a member effective 26.10.608/Rs. B.68. Mathur Shri N. 11.619/- * Retired on attaining the age of superannuation on 30.04.53rd Annual Report 2004-05 Corporate Governance (Contd. The terms of reference of the Audit Committee are as provided under the Companies Act and other applicable regulations. 8.05.244/- Rs. ** Appointed Director . 10.97. Nandagopal was inducted in the Audit Committee as a member effective April 07. Audit Committee : The Audit Committee comprises of Non-Executive Directors as follows : 1. Dr. The scope of the Audit Committee includes the following : • • • Reviewing with Management the annual financial statements before submission to the Board.) Remuneration paid to Whole-time Directors during 2004-05 is as under : NAME OF DIRECTORS Shri M.93.
L. Director . 2005 Attendance at Audit Committee Meetings : Name of the Members Shri T.K. 3. • The Committee. before the Accounts were adopted by the Board. B. Committee on HR Policies : The Company has constituted the Board Sub-Committee on HR Policies to look into various aspects including remuneration as well as Compensation and Benefits for the employees. 3. C. This Committee reviews investment proposals before they are placed before the Board for its consideration. 2005 23rd May. Shri T. Mohanty Shri Rajesh V. L. Sankar Dr. 5. Sankar is the Chairman of the Committee. 4. L. 2. Date of Audit Committee Meetings : 31st May. Shah Shri T. D. Shah Shri A. 2005. Ramulu Shri Prabh Das (from 26/05/05) Shri T. 2.Human Resources. Kulkarni Shri Arun Balakrishnan No. of Meetings held 4 2 4 No. Srivastava (till 07/03/05 ) Shri C.Corporate Governance • (Contd. The Committee comprises of : 1. reviewed the Accounts for the year 2004-05. of Meetings attended 3 1 2 % of attendance 75% 50% 50% Shri Arun Balakrishnan. Investor Grievance Committee : The Company has constituted Investor Grievance Committee comprising of Non-Executive Directors as follows : 169 . Reviewing the Company’s financial and risk management policies. L. at the meeting held on May 23. 2004 3rd March. 2004 28th October. Sankar Shri Rajesh V. Investment Committee : The Company has constituted the Investment Committee with the following members : 1. Shah B. Sankar Shri Raja G. Shri Rajesh V.) Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. is the Convenor of the Committee. 4.
Lal (Chairman & Managing Director) D. The Remuneration of the wholetime Functional Directors are fixed by the Government of India.73 8. Kulkarni Shri C.97 9.B. B.K.04. 2004 3rd March.93 1.10 7.05.10.93 11. 29th October.05.05. Roy Choudhury (Director – Marketing) (From 10.32 10.04 Arun Balakrishnan (Director . allowances and perquisites as determined by the Government of India.S. Nandagopal Shri Rajesh V.78 0. Singh was inducted in the Investor Grievances Committee as a member effective 26. Ramulu (Director .) Non-Executive Independent Director Non-Executive Independent Director Non-Executive Government Director Non-Executive Independent Director Non-Executive Government Director Shri Raja G. The Committee reviews the status of Investor Grievances and Services and other important matters of investors’ interest.53rd Annual Report 2004-05 Corporate Governance 1.78 Contribution to Superannuation Fund and Gratuity – Other Benefits Total Name of the Director M. 4. Shri M.18 0.Refineries) Till – 30. The details of Remuneration paid to all the Functional Directors are given below : Ø The remuneration of the whole-time Functional Directors include basic salary.16 1.B. Dates of Investor Grievance Committee Meetings : 31st May.05. B.53 0.28 0. * Shri M.HR) C.40 1.2004) 8. Ø The gross value of the fixed component of the remuneration. 2005 26th May. Also. 2005 Remuneration Committee : HPCL has not felt the need for Remuneration Committee in view of the fact that the Company is a Government Company as per Section 617 of the Companies Act. 5.80 0.Finance) S.27 170 .53 – 0. ** Shri C.06 0.38 10. during the financial year 2004-05 is given below : (Rs. 1956.03 1.01 – 1. Puri (Director .23 0. Mohanty ceased to be Director effective 29. they are entitled to provident fund and superannuation contributions as per the rules of the Company. 3. Singh** Shri B. Nandagopal is the Chairman of the Committee. Mohanty* (Contd. Mathur (Director . in Lakhs) Salaries & Allowances Contribution to Provident Fund 0. as explained above. 2. paid to the wholetime Functional Directors.90 6.2005 N.04.26 8.56 11.Marketing) Till – 30.84 0. 2004 E. Shah Dr.42 7.68 8.
Indian Express Loksatta etc.com Websites where quarterly results are displayed 171 .2 Whether Special Resolutions were put through postal ballot last year ? No. 5. on any matters related to capital markets during the last 3 years.B. Worli.02 Time 3.09.09.) HPCL has a Shares Department under the Company Secretary. at the AGM. The Corporation regularly interacts with the shareholders through letters. Presently.Corporate Governance Shares Department Activities : (Contd. Mumbai Nehru Centre. Mumbai.08. hindustanpetroleum. 3.04 24. The Company Secretary is the Compliance Officer in terms of the requirements of The Stock Exchange. Share transfers. investors’ meets. Times of India. demat/remat and other important matters are approved by the Share Transfer Committee. Mumbai Date 09. 5. advices to Stock Exchanges. 3. The Company has been taking appropriate steps to ensure that shareholder related activities are given due priority and matters are resolved at the earliest. its performance and its future plans is provided to the shareholders. Chavan Auditorium. wherein the activities of the Corporation. During the year 2004-05. where last three AGMs held : Year 2003-04 2002-03 2001-02 Location Y. The Company also organises press meets and press releases. 6. etc. The quarterly results are published in the newspapers . MEANS OF COMMUNICATION : Ø Ø Half yearly report Quarterly results ✓ Ø Which newspapers normally published in Press Advertisements. Chavan Auditorium.com. Mainly business/regional newspapers.m. 5. Financial Express.3 Are votes proposed to be conducted through postal ballot this year? No.00 p. The Financial Per formance and other details are also posted on the Company’s website hindustanpetroleum.m.00 p. strictures imposed on the Company by any Stock Exchange or SEBI or any Statutory Authority.1 Location and time. DETAILS OF ANNUAL GENERAL MEETINGS : 5.30 p. There have been no instances of non-compliance by the Company or penalties. HPCL has over 107800 shareholders. Mumbai Y. there were no material transactions with Directors or their relatives having potential conflict with the interests of the Company at large.B. transmissions. which monitors the activities of R&T Agents and looks into the issues relating to shareholders. like Economic Times.m.03 28. 4.
General Jagannath Bhosale Marg Next to Sachivalaya Gymkhana. ending 30. The Company also communicates with the shareholders from time to time.03. 2006 September 6 . 7. 3/1.21. G-Block.5 (a) Listing on Stock Exchanges The Stock Exchange.53rd Annual Report 2004-05 Corporate Governance Ø (Contd.05 Financial reporting for Qtr. Mumbai Phiroze Jeejeebhoy Towers. ending 31. 2006 Aug-Sept. Mumbai – 400 001 : The Delhi Stock Exchange DSE House. 2005 End Oct.B.05 Financial reporting for Qtr. 2005 at 3. ending 30. 11. Asaf Ali Road. Chavan Auditorium. Bandra-Kurla Complex. New Delhi – 110 002 Madras Stock Exchange Ltd.400 021 7.1 53rd Annual General Meeting Date and Time Venue : : September 21.06. 5th Floor. Kolkata – 700 001 The National Stock Exchange of India Ltd.00 PM Y. Dalal Street.3 Date of Book Closure : End Jul. ending 31. Bandra (East). Second Line Beach. Mumbai .06 Annual General Meeting for year ending 31. Exchange Building.12. 2006 End May.4 Dividend payment date (tentative) : 7. Chennai – 600 001 The Calcutta Stock Exchange 7 Lyons Range .09. Plot No. Exchange Plaza.03. GENERAL SHAREHOLDER INFORMATION : 7.2 Financial calendar Financial reporting for Qtr. C/1. 2005 End Jan. 2005 September 26. Mumbai – 400 051 172 .2006 7. 2005 7.) Whether it also displays official news releases and presentations made to institutional investors/analysts Whether Management Discussion and Analysis Report is a part of Annual Report Whether shareholder information section forms part of Annual Report Yes Ø Yes Ø Shareholder information has been incorporated in the Annual Report.05 Financial reporting for Qtr.
3.2002 31.60 3048.20 173 .55 1148.75 Low Rs.3.Corporate Governance 7.50 : : : 500104 HINDPETRO INE094A01015 Performance in comparison to broad based indices As on 31.40 290.55 269. 7.2001 HPCL Share price Rs.) : Listing fees for financial year 2005-06 have been paid to the above 5 Stock Exchanges in April.60 338.95 507.90 978.60 294.3.2005 31.38 NSE 50 NIFTY 2035.72 3469. 2005.45 329.50 542.5 (b) Listing fees (Contd.7 Stock Market Data : HPCL Share Price – BSE Year 2004-05 2003-04 2002-03 2001-02 High Rs. 225.40 166.50 94.82 5590.2003 31.60 160.65 1771. 538.3.35 3694.6 Stock Codes : BSE NSE ISIN (for trading in Demat form) 7.60 BSE 30 SENSEX 6492.2004 31.20 1129. 305.3.
. MIDC Area.03 6.12 44.60 2000-01 32. 12482665 23969602 16247254 16330655 9440345 7697085 7654518 8858715 7926388 6434761 4943708 9216925 High Rs.80 401.20 295. 31283965 53034612 39396678 41021816 26657223 21035776 23335803 27114551 27549285 21336145 20457345 26255538 PER SHARE AND RELATED DATA : 2004-05 Per Share Data EPS CEPS Dividend Book Value Share Related Data Dividend Payout Price to Earnings* Price to Cash Earnings* Price to Book Vaue* * Based on March 31 closing prices Unit Rs.00 197.35 317.20 262.70 337.35 304. 174 .10 296. Rs. 27.50 307.25 305.55 341.07 43.65 336.45 300.47 1. Andheri (East).00 351.80 338.00 480.50 416.15 316.00 367.25 295.12 5.25 307.35 307. 448.18 75.60 341.70 400.00 359.58 1. MCS Limited Sri Venkatesh Bhavan.10 Mumbai Stock Exchange Low Rs. National Securities Depository Limited and Central Depository Services (India) Limited.50 487.00 3. April 2004 May 2004 June 2004 July 2004 Aug 2004 Sept 2004 Oct 2004 Nov 2004 Dec 2004 Jan 2005 Feb 2005 Mar 2005 538.37 62.00 351.53rd Annual Report 2004-05 Corporate Governance (Contd.00 336.40 2001-02 23.60 2002-03 45.23 9.) HPCL SHARE PRICE MONTHLY DATA Month High Rs.69 54.20 Close Rs.00 353.45 303.20 225.23 305.91 10.00 228.49 4. Rs.00 341.42 8.60 336.60 302.9 Share Transfer System Activities relating to Share Transfers are carried out by MCS Limited who are the Registrars and Transfer Agents of the Company who have arrangements with the Depositories viz.60 0.00 355.67 22.47 44.10 Close Rs. Plot No.95 2003-04 56.55 299.95 Volume Nos.24 6.20 300.00 325.8 Registrars and Transfer Agents : M/s.94 20. The transfers are approved by the Share Transfer Committee. Share transfers are registered and Share Certificates are despatched within a period of 30 days from the date of receipt if the documents are correct and valid in all respects.25 338. 37.00 360. Road No.06 12.49 294.90 416.50 National Stock Exchange Low Rs.04 45. Rs.05 337.60 7.20 414.00 341. 460.00 174. Unit % Multiple Multiple Multiple Rs.00 339.00 316.47 34.35 291.00 336.20 264.55 300.15 302.50 380.22 507.67 290.85 10.00 191.45 315. 448.68 1.90 338. 539.35 Volume Nos.50 280.90 338.55 362. 460.00 351.80 160.00 249.00 296.26 42. Mumbai – 400 093 7.95 380.50 363.15 318.37 5.81 15.05 315.12 49.71 2.05 282.00 367.15 291.49 7.40 407. 11.
Stock Exchanges. Department of Company Affairs etc. Road No. w.: 022 . 3204/3201/3233/3239/3208 Fax No.: 022-2287 4552/2284 1573 175 . 7. Detachable Tradeable Warrants issued alongwith public issue shares in April 1995 were converted into equity shares during the period February 1997.2202 6151 Ext.) The number of shares transferred during last two years : 2004-05 88905 2003-04 222090 7. 1999 as per notification issued by the Securities and Exchange Board of India (SEBI). Trading in Equity shares of the Company is permitted only in dematerialised form. Call Money Payment Correspondence/Reminders 7. Share Transfers and related issues 2. 7. Andheri (East).2005 is 161724223 representing 97. 7. MIDC Area.2821 5235 Fax No. The Warrant certificates were not called back by the Company and bear no value.03. Mumbai .April 1997. Plot No. Sri Venkatesh Bhavan.400 020 Telephone No.: 022 .10 Status of Investor Services : Investor correspondence replied during the year are as follows : Nature of Correspondence 1.2835 0456 Company’s Shares Department : Shares Department HINDUSTAN PETROLEUM CORPORATION LIMITED 2nd Floor. 100 Depots. 7. Petroleum House.. Dividend related issues 5. Mumbai . 36 Terminals/ Tap off Points.: 022 .400 093 Telephone No. MCS Limited Unit : HINDUSTAN PETROLEUM CORPORATION LTD.12 Outstanding GDRs/ADRs/Warrants or any convertible instruments. have been dealt with. Others Total Number 269 354 110 2401 3642 2722 51 1185 10734 All complaints received from SEBI. Churchgate. conversion date and likely impact on equity : There are no outstanding Warrants to be converted into Equity shares.e. located all over the country. It has 85 Regional offices. February 15. SEBI/Stock Exchange/Legal cases 8.. Jamshedji Tata Road. 27. 40 LPG Bottling Plants and 6667 Retail outlets etc.13 Plant Locations : The Corporation has 2 Refineries located at Mumbai and Visakh. 17.14 Address for correspondence Registrars and Transfer Agents : M/s.. Transmission of Shares/Nomination for shares 3.11 Dematerialisation of shares and liquidity : The total number of shares dematerialised as on 31.Corporate Governance (Contd. 11.28% of share capital excluding shares held by the Government of India. Issue of Duplicate share certificates 4.f. ECS/Bank Mandates/Request for Change of Address 6.
32 0.2004 No. of Shareholders % No.89 4.00 7.72 0.03.61 3.01 16.16 Shareholding pattern as on : 31.86 Total 19218 177605777 88672 161724223 107890 339330000 100.33 92. of Shares 173076750 52184490 73696932 1633802 8105835 1170352 522910 28938929 339330000 % No. of Shareholders 1 36 147 30 86 3547 1162 102881 107890 No. of Shares Physical Holding No.00 176 .71 0. of Share.Holding Shares holders 1-500 18308 3412159 80836 10239619 99144 13651778 91.03.28 100.42 10001 & above 3 173429250 354 141661732 357 315090982 0.02 501-1000 810 590930 4783 3588543 5593 4179473 5.34 0.19 1. of Shares 173076750 55822735 66875476 2069128 11628698 1102379 654525 28100309 339330000 % President of India Financial Institutions FIIs/OCBs Banks Mutual Funds NRIs Employees Others Total 51.45 19.41 1.38 21. of Shareholders Dematerialised Holding No.2005 No.2005 Category No.15 8. of No.53 100.43 0.) 7.00 100.18 0.00 51. of Shares Total Share holding No.47 5001-10000 3 19050 191 1401565 194 1420615 0.53rd Annual Report 2004-05 Corporate Governance (Contd.39 0.03.01 15.19 8. of Shareholders 1 48 228 26 121 3387 1450 90740 96001 31.15 Distribution Schedule as on 31. of Shares Shareholders No.48 2.23 1001-5000 94 154388 2508 4832764 2602 4987152 2.
Our examination was limited to procedures and implementation thereof. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. Raiji & Co. Balse Partner 177 .M. as stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges in India. We state that no investor grievances are pending for a period exceeding one month against the Company as per the records maintained by the Shareholders’/Investors’ Grievance Committee. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the abovementioned Listing Agreement. Chartered Accountants Vinay D.The Board of Directors of Hindustan Petroleum Corporation Limited We have examined the compliance of Corporate Governance by Hindustan Petroleum Corporation Limited. For an on behalf of G. Chartered Accountants Nimesh Bhimani Partner Place : Mumbai Dated : July 18. Kapadia & Co. 2005 For and on behalf of N. It is neither an audit nor an expression of opinion on the financial statements of the Company. for the year ended on March 31. 2005.P. The compliance of conditions of Corporate Governance is the responsibility of the management. In our opinion and to the best of our information and according to the explanations given to us. adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance.
B. New Delhi : 110001 Bankers Statutory Auditors M/s R.P.S.53rd Annual Report 2004-05 Guru Gobind Singh Refineries Limited BOARD OF DIRECTORS Shri M. Kasturba Gandhi Marg New Delhi : 110001 Company Secretary Shri Sidhartha Tyagi 178 . Director (till 29/10/2004) Shri N.A. Sankar. UCO Bank Building. Mohanty. Director Shri S. Ramulu. Director Shri C. Director (till 30/04/2004) Registered Office Village Taluka District State : : : : Phulokhari Talwandi Saboo Bathinda Punjab Administrative Office 3rd Floor. Managing Director Shri D. Chairman Shri M.L. Puri. B. Director (from 14/05/2004) Dr. Sansad Marg.K. Tankiwala. Lal.Vender Gupta and Associates Punjab National Bank 28-A. Mathur. Director (till 31/05/2005) Shri T. Chaudhry.
179 . As on 31st March. Chaudhry will be the Directors who will retire by rotation at the forthcoming Annual General Meeting and being eligible. 1956.S. offer themselves for reappointment under the provisions of Section 256 of the Companies Act. T. Sankar.P. 2005.B. The fiscal incentives granted by the Government of Punjab (GOP) has a significant bearing on the viability of the Project. STATUTORY DISCLOSURES (A) Particulars of Employees u/s 217(2A) of the Companies Act. Ramulu and S. CORPORATE GOVERNANCE The details in this regard is enclosed as Attachment and form part of this Annual Report. 1956. During the period your company also assisted HPCL in the various studies on Non-Conventional energy resources. Lal. adaptation and import of technology from the date of incorporation. (D) Foreign exchange earnings and outgo : The required information in respect of foreign exchange earnings and outgo is given in Note no. I present the 4th Annual Report on the working of your Company together with the Audited Statements of Accounts. (B) Conservation of Energy : As required under 217(1)(e) of the Companies Act. your Company is continuing discussions with Government of Punjab for early conclusion of Deed of Assurance (DOA) and the matter is expected to be finalized shortly. 2005. 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. Mathur.Directors' Report On behalf of the Board of Directors of your Company.P. (C) Technology Absorption : The Company has not made any absorption.L. 1956 : There are no employees under the category covered by Section 217 (2A) of the Companies Act. as part of its existing internal control measures. Tankiwala the Managing Director of the Company. 2000 with its Registered office at Bathinda and has been formed with the objective of setting up a 9 MMTPA Grass root refinery along with associated facilities in the State of Punjab. is striving for the Conservation of Energy under the supervision of Managing Director on a continuous basis and is satisfied that the utilisation of energy is optimum for the present working of the Company. As per the provisions of Section 256 of the Companies Act.A. Chaudhry continue to be the part time Directors of the Company and Shri M. 1956. your Company is a wholly owned subsidiary of Hindustan Petroleum Corporation Limited. the Board hereby discloses as follows : (i) That the Board. The Company thereafter intends to take up the project activities which were put on hold. 1988 regarding Energy Conservation and Technology Absorption. D. C. As such. S/Shri C. DIRECTORS S/Shri M. 8 (b) of the Accounts. Ramulu and S. the Auditors Report and the Review of the Accounts by the Comptroller and Auditor General of India for the financial year ended on 31st March. As you are aware your Company was incorporated on 13th December.
) DIRECTORS RESPONSIBILITY STATEMENT In terms of Section 217 (2AA) of the Companies Act. support and guidance received from the Government of India. 1956. (iv) These accounts have been prepared on a going concern basis. Punjab State Industries Development Corporation. (iii) The Company has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. Government of Punjab. the Ministry of Petroleum and Natural Gas. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. Government of Rajasthan. ACKNOWLEDGMENT Your Directors acknowledge with thanks the continued help. 2005. B. ACCOUNTS There being no commercial activities. For and on behalf of the Board of Directors Shri M. Your Directors also take this opportunity to place on record their appreciation on the valuable contribution made by the employees. (ii) The Company has 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 as on 31st March. the Company is only required to prepare the Balance Sheet for the period of 12 months from 01/04/2004 to 31/03/2005. your Directors state that : (i) In the preparation of the annual accounts for the financial year 2004-05. Department of Public Enterprises. Lal Chairman Place : New Delhi Date : May 09. Government of Gujarat. the applicable accounting standards have been followed along with proper explanation relating to material departures. 2005 180 .53rd Annual Report 2004-05 Directors' Report (Contd. Government of Haryana and the holding Company HPCL in guiding the Company in its activities. especially.
1956. (v) On the basis of written representations received from the Directors. we report that none of the Directors is disqualified as on 31st March. 2005 181 .Auditor's Report To The Members GURU GOBIND SINGH REFINERIES LTD. as well as evaluating the overall financial statement presentation. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. Our responsibility is to express an opinion on these financial statements based on our Audit. 2005 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act. (vi) In our opinion and to the best of our information and according to the explanation given to us. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. the Balance Sheet and Statement of Incidental Expenses incurred during Construction Period dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act. These financial statements are the responsibility of the Company’s management. 2005 and taken on record by the Board of Directors. An audit also includes assessing the accounting principles used and significant estimates made by management. 2005 along with Statement of Incidental Expenses incurred for the year ended on that date annexed thereto. as on 31st March. 1956. 1956. (a) In the case of the Balance Sheet. For R. As required by the Companies (Auditor’s Report) Order. (iii) The Balance Sheet and Statement of Incidental Expenses dealt with by this report are in agreement with the books of account. Vender Gupta & Associates Chartered Accountants Lalit Kumar Partner Membership No. which to the best of our knowledge and belief were necessary for the purposes of our audit. Further to our comments in the Annexure referred to above. An audit includes examining. of the State of affairs of the Company as at 31st March. we report that : (i) We have obtained all the information and explanations. We conducted our audit in accordance with the auditing standards generally accepted in India. the said accounts read with notes thereon give the information required by the Companies Act. 2005. (b) In the case of “Statement of Incidental Expenses” the expenses incurred for the year ended on that date. evidence supporting the amount and disclosures in the financial statements. 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act. 1956. No Profit & Loss account has been prepared since the Company is under construction stage during the year. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. 1) We have audited the attached Balance Sheet of Guru Gobind Singh Refineries Limited as at 31st March. (iv) In our opinion. We believe that our audit provides a reasonable basis for our opinion. on a test basis. 2) 3) 4) (ii) In our opinion. 92803 Place : New Delhi Date : May 09. we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order.
is reasonable having regard to the size of the Company and the nature of its assets. In our opinion. b) All the assets have been physically verified by the management during the year and there is a regular programme of verification which. II. VI. 1956 is not applicable. the Company has an Internal Audit System. The Company is in construction stage. 1956. As the Company is under construction stage. a) The Company is regular in depositing with appropriate authorities undisputed statutory dues like Income tax. commensurate with the size and nature of its business. there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to fixed assets. in our opinion. b. Sales tax. which were applicable during the year to the Company. IX. The Company has not accepted any deposit from the public during the year hence the provisions of Section 58 A & 58 AA of the Companies Act. Excise duty and Custom duty. Hence clause (a.53rd Annual Report 2004-05 Annexure to Auditor's Report Referred to in paragraph 3 of our report of even date I. V. 1956 hence this clause is not applicable. c) During the year. The Company had not taken any loan during the year from other companies covered in the register maintained under Section 301 of the Companies Act. No material discrepancies were noticed on such verification. 1956 and Rules framed there under are not applicable. In our opinion and according to the information and explanation given to us. the Company has not disposed off any plant & machinery hence this clause is not applicable. therefore. c & d) is not applicable to the Company. III. therefore. b) In our opinion and according to the information and explanation given to us . b & c) relating to inventory is not applicable to the Company. IV. this clause of cost records under Section 209 (1)(d) of the Companies Act. 1956. a) According to the information and explanation given to us. As the Company in under construction stage therefore this clause (a. a) The Company has maintained a register showing full particulars including quantitative details and situation of fixed assets. this clause relating to inventory and sale of goods is not applicable. there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act. there are no such transactions which needs to be entered into the register maintained under Section 301 of the Companies Act. During the course of audit we have not observed any major weaknesses in internal control. VII. VIII. 182 .
debentures and other investments. In our opinion. this clause is not applicable. XIII. we report that Company has not raised any Short Term/Long term funds. X. 92803 Place : New Delhi Date : May 09. no fraud on or by the Company has been noticed or reported during the course of our audit. Excise duty and Custom duty were in arrears as on 31st March. XVIII. Therefore this clause is not applicable. c) According to Information and explanation given to us. XVI. According to information and explanation given to us. XI. XIX. According to information and explanation given to us and on the basis of overall examination of the Balance Sheet. XV. 2005 183 . Therefore this clause is not applicable. Vender Gupta & Associates Chartered Accountants Lalit Kumar Partner Membership No. the Company has not applied for any term loan. the Company has not issued any Debentures during the year under report. the Company has not given any guarantee for the loan taken by others from Bank and Financial Institutions. there are no dues of Sales tax. In our opinion. hence this clause is not applicable.Annexure to Auditors' Report b) According to Information and explanation given to us. 2005 for the Period more than six months from the date they become payable. the Company is not a chit fund or a Nidhi/Mutual benefit fund/Society. The Company has not granted any loans and advances against pledge of shares. For R. The Company has not raised any money by Public issue hence this clause is not applicable to the Company. Therefore this clause is not applicable. XXI. Sales tax. Custom duty and Excise duty. therefore. XVII. XII. Therefore this clause is not applicable to the Company. According to the information and explanation given to us. Therefore this clause is not applicable to the Company. The Company has not taken any loan from Bank & Financial Institution and not issued any debenture during the year. According to information and explanation given to us. XX. In our opinion. the Company has not made any preferential allotment of shares to any party and companies covered in the register maintained u/s 301 of the Companies Act. In our opinion. debentures and other securities hence this clause is not applicable. no undisputed amount payable in respect of Income tax. The Company is in the construction stage hence this clause of accumulated losses is not applicable. which have not been deposited on account of any dispute. the Company is not dealing in or trading in shares. Income tax. Therefore this clause is not applicable. XIV. securities.
050 10 2.444.505 41. Ramulu Director S. Tyagi Company Secretary 184 .014.475 (63. 2005 M.000 2. SOURCES OF FUNDS 1. APPLICATION OF FUNDS 1.100. (to the extent not written off or adjusted) Statement of Significant Accounting Policies and Notes forming part of Accounts Total 9 (21.592 1.473.087.493.000 13.270.913 1.222 2.611 3. Shareholder’s funds : Share Capital 2.935.641.53rd Annual Report 2004-05 Balance Sheet as at 31st March.973.205. Loan and Advances : a) Sundry Debtors b) Cash and Bank Balance c) Other Current Assets d) Loan and Advances Less : 3.226.627.003 2.000 As at 31st March.640.279 1.681 102.972.473 103.900.) Schedule I.486.113 49.900.101.100.A.952. 2005 Amount (Rs.095 80.356. Share Application Pending Allotment Total II.900. Current Assets.935.624.097. Current Liabilities and Provisions a) Liabilities b) Provisions 4 5 6 7 67.334 553.387.013. Malhotra DGM.203. Net Current Assets 5.768.864) 26.069 12.922. Tankiwala Managing Director S.585.000 2.468. 2004 3 8 123.169 62.000 2. 2005 As at 31st March.957.957.000.962.014.Finance C.957.000 – 2.130.200 2.262.611 1 2.374.972 1. Fixed Assets : a) Gross Block b) Less : Depreciation c) Net Block d) Capital Work in Progress 2 1.050 4.000 For R Vender Gupta & Associates Chartered Accountants Lalit Kumar Partner Place : New Delhi Date : May 09.031.864 143.508 13.197 1.617 34. Miscellaneous Exp.529 143.357 123.814 29.578.250) 26.100.172 5.
809 1. 2004 : 292.083.022.100.900.864.000. 10/.000.690 * 33.585.605.000) Equity Shares of Rs.900.647.935.000.315.262.031.871.738 Ded/ Recl.000.503.382 3.493.028.000 (As at 31st March.246.000) Equity Shares of Rs.171.885 – 11. 2004 : 550.962 – 332.03.472.673.775 1.372.500.000 2. SUBSCRIBED & PAID UP CAPITAL 295.867.035.2005 As at 31.957.617.915 – 876.886 52.382 41.922.642 3.03.915 22.996 21.143 73.500.2004 DEPRECIATION BLOCK For the year 2004-05 Ded/ Recl.000 SCHEDULE 2 FIXED ASSETS GROSS BLOCK Description As at 01.112.150.936 653.SPM/COT' in Schedule 3 185 .975 299. 2005 Amount (Rs.416 311.000 22.214.171.1247 88.190. 10/.000 C.581. Total Upto 31.505 21.957.849. 2004 SCHEDULE 1 SHARE CAPITAL A.191 1.386.083.612 205.612 198.000 2.Right of Use Road & Culverts Buildings Lease Hold Property-Land Plant & Machinery Furniture & Fixture Total Previous Year 876. As at 31.214.260 – – – – 332.592 1.624.000 5.130.768.022.each 5.057.913 * This amount of amortization of land has been classified under the head ‘Direct Revenue Expenses.533 59.000 5.000 2. AUTHORISED 550.000 2.519.065.497 – – 3.086 53.2005 NET BLOCK As at 31.592 15.each fully paid 2.591 – – 33.040.871.088 876.511 204.000 2.627.864.547 605. 2004 : 293.619 14.000 291.710.034 21.937 – – – 9.each 2.640.578.) As at As at 31st March.100.936 – 944.590. 2005 31st March.137 1.000 (As at 31st March.768. ISSUED CAPITAL 295.957.488.900. 10/.350 194.169 1.016.991.275.651 7.030.907 41.318 4.147 33.264.447 5.279.922.Schedules forming part of the Balance Sheet as at 31st March.234 4.579 1.647.131.105 – 78.334.505 1.385 – 1.000.913 20.312 64.647 7.250.699.546 68.585.935.057.533 59.000 B.326.031.627.835.473 – – 6.279.500.625.03.197 1.014 876.2004 Additions/ reclassification during the year 769.900.972 47.782.2004 As at 31.290.000.191 1.Freehold .03.000 (As at 31st March.262.197 75.847 88.092.197 75.000 113.143 73.937 62.350 204.578 4.000 5.500.957.03.130 11.710.585.04.000) Equity Shares of Rs.2005 Land .
692 299.782.740 1.151 1.052.331.540 9.363.880 932.268 Direct revenue Exp-SPM/COT Lease Rent 32.000 – 3.784.SPM/COT Advance to PSEB for Capital Expenditure Capital Expenditure not represented by asset owned by company Wind Energy Project Total (I) II. 2004 Incidental expenses during the construction (pending apportionment) Opening Balance 467.886.061 141.889.712 61.460.Refinery Capital work in progress .216.498.568.094.53rd Annual Report 2004-05 Schedules forming part of the Balance Sheet as at 31st March.370 5.546 55.140 11.768 31. 201.437 3.456.743 812.699.045 Direct revenue Exp-Refinery DFR Cost Consultancy to Invitation to Bid Other Incidental Expenses Salary and Wages (Reimbursed to Holding Co.694 2.355 1.376.492.195.221 6.456. Telephone Telegram and Telex Staff Welfare Expenses Security Charges Fuel.061.598 44.000 17.000 5.827.917 54.182.360 1.) Travel/Conveyance/Transportation Charges Professional Charges Sponsorship/Subscription Outsourced services Rent Insurance Postage.079.082.829 344.021 26.226 3.061 146.890.542 50.) As at 31st March.679 1.361 186 . Electricity and Water Stationary and Office Supplies Repair and Maintenance to others Repair and Maintenance to building Books and Periodicals General Expenses Audit Fees (Inclusive of service tax) Income Tax Rates and Taxes Depreciation Sub Total 342.000 19.535 345.531 409.857.678 950.954 As at 31st March.760 114.853 1.488.048.978 1.560 1.000 5.541.234 Survey and Feasibility Study 56.126.044 24.920 3.858 525.569 25.541.211 296.000 9.592.000 8.234 11. 2005 Amount (Rs.216 20. CAPITAL WORK IN PROGRESS (at Cost) Capital work in progress .907.482.763 48.052.721 3.131 50.058.215.464. 2005 SCHEDULE 3 I.Pipeline Capital work in progress .364.510.122.202.051.973 570.120 1.213 Amortization of land 11.082 649.634 55.748 2.782.781 199.804.000 2.907 6.678 – 920.226 3.448.342 1.133.377 1.921 4.215.330.912 675 902.215.
387.000 808 412.373.182.003 10.222 1.677 4.473 – – 29.027.Schedules forming part of the Balance Sheet as at 31st March.205.041.637 1.641.632 563.436 12.617 7.086 – (33.486. holding company) Total SCHEDULE 5 CASH AND BANK BALANCE Cash on hand Balance with Schedule Bank – On Current Account with Punjab National Bank – On Fixed/Recurring Deposit Account Total SCHEDULE 6 OTHER CURRENT ASSETS Interest Accrued on bank deposits but not due Interest accrued and due on bank deposits Total 2.163) 48.222 187 .082.051.261 553.069 – – 67.226.811 1.123 467.543 467.990 13.113 100.334 29.771 291. 2004 349.374.268 1.641.627 10.937) As at 31st March. 2005 Amount (Rs.473 67.334 14.379.772 280.925 (19.) As at 31st March.508 140. 2005 Prior period credit/debit Incidental Expenses Depreciation Sub Total Less Interest on Term Deposits Miscellaneous Income Total (II) Grand Total [(I) +(II)] SCHEDULE 4 SUNDRY DEBTORS (Unsecured) Debt outstanding for a period exceeding six months Considered good Considered doubtful Other debts Considered good (Due from HPCL.723 562.000 3.486.010.945 61.508 – 103.
026.593 3.468.723 95.260.864 3.127 1.910 1.529 2.014.911.288 – 42.000 5.473.681 9.752.077 1.061 25. 2005 Amount (Rs.211.172 B.782 3.523.936 2.357 5.316.650 49.864 143.372.095 188 .803.803.883 40. Provisions Income Tax 5.550 5.) As at 31st March.426 106.873 6.53rd Annual Report 2004-05 Schedules forming part of the Balance Sheet as at 31st March.767 113.929 16.050 26. 2005 SCHEDULE 7 LOAN AND ADVANCES (Unsecured.050 20.211.916.000 5.611 3.097.475 As at 31st March.962. considered good) (Advance recoverable in cash or kind for the value to be received) Security Deposits Paid TDS on Interest Income CENVATABLE Claim Income Tax Refund due Other Advances Total SCHEDULE 8 CURRENT LIABILITIES AND PROVISIONS A.082.445 123.127 6.018 3.530.347 2.706.357 Total SCHEDULE 9 MISCELLANEOUS EXPENDITURE (To the extent not written off or adjusted) Preliminary Expenses Proposed Public Issue Expenses 20.444.692.070 2.014.101.866 72. Current Liabilities Duties and Taxes Sundry Creditors Earnest Money Deposits Retention Money Security Deposits Received Adhoc deductions Liabilities for – Works Contract – Expenses 104.010.050 123.891 8.533.274.798.806.670 143.050 26.119. 2004 8.550 34.
The Company has prepared the Statement of Incidental Expenditure during construction instead of a Profit and Loss Account. disposal or deletion during the year. Land Land acquired on lease for less than 99 years is treated as lease hold land. Fixed Assets Cost of Fixed Assets comprises of purchase price. GGSRL is a wholly owned subsidiary of HPCL and a Government company under Section 617 of the Companies Act. c. Hence. The entire equity contribution to Guru Gobind Singh Refineries Limited (GGSRL) has been made by HPCL. except where otherwise stated. Accounts are prepared under the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP). Premium on lease hold is amortized over the period of lease. Intangible assets 1. All income and expenditure having material bearing are recognized on the accrual basis. from/upto and inclusive of the month of capitalization/sale. Cost of “Right of Use” is capitalized. Depreciation on fixed assets is provided on straight line basis. 2. Expenditure on Intangible assets in the nature of “Assets not owned by the Company” are amortised over a period of five years after commencement of commercial production b. Expenses during Construction Period The direct project expenditure incurred during the construction period has been shown under the head “Capital Work in Progress” which will be transferred to relevant fixed assets as and when they are completed. However. in the manner and at the rates provided under Schedule XIV of the Companies Act. levies and any directly attributable cost of bringing the asset to its working condition for its intended use. The necessary details as per Part II of Schedule VI of the Companies Act. 2005 SCHEDULE 10 A. such “Right of Use” being perpetual in nature is not amortized.Statement of Significant Accounting Policies and Notes forming part of Accounts as at 31st March. d. have been disclosed in the said statement. duties. 2. Depreciation 1. Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act. e. 2. g. 1956. f. Lease hold land is amortized over the period of lease. Depreciation is charged Prorata on monthly basis on assets. Cost of “Right of Use” is capitalized. B. 1956. NOTES FORMING PART OF ACCOUNTS 1. 1956. 189 . Indirect expenditure incurred during construction period has been shown under the head “Incidential Expenditure relating to project (pending apportionment)” which will be apportioned to fixed assets upon completion of the project. SIGNIFICANT ACCOUNTING POLICIES a. 1956. Miscellaneous Expenditure The expenditure shown under the head “Miscellaneous Expenditure (to the extent not written off/ adjusted)” will be amortized over a period of five years after commencement of commercial production.
8760 lakhs). Estimated amount of contract remaining to be executed on Capital Account not provided for 11. Contingent Liabilities not provided for in respect of (i) Land Compensation*(plus interest if any) 17326./Lakhs) 2004-05 b.05 17326.00 20.11 2003-04 0. a. 7. 8760 Lakhs) comprises of : (i) Land at refinery site : Rs.53rd Annual Report 2004-05 Statement of Significant Accounting Policies and Notes forming part of Accounts as at 31st March. hence information containing in paragraph 3 and 4C of Part II of Schedule VI is not applicable. (ii) Rs. The entire manpower of the Company except the Managing Director has been assigned by Hindustan Petroleum Corporation Limited (HPCL).L. The necessary action for transfer of the above land viz “Intakal” process has been completed and the Company is in the process of signing conveyance deed. 4. As the Company is in process of construction of Refinery and its associated facilities. 8758 lakhs (Previous Year Rs. 2005 3. 9.24 1071. 3864/-) has been made on the interest received on term deposit with the Bank as per the rates applicable under Income Tax Act.77 (ii) Expenses Reimbursed 190 . Information pursuant to the provision of paragraph 3.P.00 7. 6. Related Party disclosure (With H. Accordingly. 5357/.22 7211. 8 Lakhs deposited with statutory authorities viz Sub Divisional Officers/Tehsildar towards land acquisition along pipeline route for pumping and service stations.C..16 5. Holding Company) (i) Issuance of Share Capital 212.00 (ii) Claims against the Company not acknowledged as debts 10.00* 1649. Expenditure in foreign currency on account of : Purchase of Books/Magazine 1. A provision for Income Tax of Rs. 4C and 4D of part II of Schedule VI of the Companies Act.00* 1289. 8766 Lakhs (Previous Year Rs. 1956. no provision has been made for retirement benefits in the books of the Company and Section 217 (2A) of the Companies Act. 8. The amount of cenvat claim in Schedule-7 represents excise duties and counter vailing duties paid by the Company which shall be utilized as a set off from the excise duty payments. (Rs. the Holding company on full time basis. The ownership of the land has not yet been transferred in the name of the Company. The Managing Director of the Company continues his lien with HPCL and his salary and other emoluments are administered by HPCL. 1956 is not applicable for the Company. There were no amounts due payable to Small Scale and/or Ancillary industrial suppliers on account of Principal and/or interest as at the close of the year exceeding Rs. Cost of land (Freehold) Rs.(Previous Year Rs. One lakh for more than thirty days.00 7110. 1961.
57 6.00 16.80 265.83 1. 18. 17.55 0.00 739. 191 .03.12 (ii) Gratuity (iii) Contribution to Provident Fund (iv) Other Benefits 13. Figures under Schedule “1” to “9” have been rounded off to the nearest rupee. of service tax) (i) Audit Fees 0. (ii) Assets not owned by the Company Amount paid for construction and widening of approach roads shown under Capital work in progress (Schedule-3).2005 Nil Nil Nil Nil (ii) Maximum amount due during the year 15.00 1415.65 1. Intangible assets (not internally generated) (i) Assets owned by the Company : Right of Use Amounts paid to Competent Authority for acquiring “Right of Use” to lay the pipeline and expenditure on investigating the title and measurement of the land. Managerial Remuneration 8008.05 0.99 MT 571. Amount (iv) Cost of Employees assigned to Company 12.70 189.05 2003-04 As Managing Director (i) Salary and Allowances 6.47 MT 1399. The “Right of Use” is a perpetual right of use of land but the ownership of the land does not rest with the Company. Schedule “1” to “10” form an integral part of the Balance Sheet and “Statement of Incidental Expense during Construction”.15 3201.Statement of Significant Accounting Policies and Notes forming part of Accounts as at 31st March. recast and reclassified wherever necessary.77 0.29 0.54 0./Lakhs) 2004-05 (iii) Sale of steel plates Qty.14 0.00 1469. The ownership of the same rests with Punjab Government. 880. 2005 (Rs. Amounts due from the Directors to the Company : (i) As on 31.26 0. Auditors Remuneration (Incl. Previous year’s figures have been regrouped.05 (ii) Certification work 14.
TANKIWALA Managing Director Place : New Delhi Date : May 09. PERFORMANCE OF COMPANY (Amount in Rs. (ITC CODE) PRODUCT DESCRIPTION ITEM CODE NO. (ITC CODE) 2 7 1 0 PRODUCT DESCRIPTION B U L K P E T R O L E U M P R O D U C T S ITEM CODE NO. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in Rs. Thousands) TOTAL LIABILITIES 3 0 8 0 5 7 4 SOURCES OF FUNDS PAID-UP CAPITAL 2 9 5 7 1 0 0 SECURED LOANS N I L APPLICATION OF FUNDS NET FIXED ASSETS* 2 9 5 2 3 5 6 NET CURRENT ASSETS ( 2 1 2 7 0 ) ACCUMULATED LOSSES N I L IV. GENERIC NAMES OF THREE PRINCIPAL PRODUCTS OF COMPANY (as per monetary terms) ITEM CODE NO. N I L INVESTMENTS N I L MISC. EXPENDITURE 2 6 0 1 4 TOTAL EXPENDITURE N I L PROFIT/LOSS AFTER TAX + N I L DIVIDEND RATE % N I L V. Thousands) PUBLIC ISSUE N I L BONUS ISSUE N I L III.53rd Annual Report 2004-05 Balance Sheet Abstract and Company's General Business Profile SCHEDULE VI PART IV OF THE COMPANIES ACT. 1956 I. RAMULU Director S. Thousands) TURNOVER N I L PROFIT/LOSS BEFORE TAX + N I L EARNING PER SHARE IN RS. TYAGI Company Secretary 192 . M.A. (ITC CODE) PRODUCT DESCRIPTION * Include capital work-in-progress. : U 2 3 2 0 1 P B 2 0 0 0 P L C 2 4 1 2 6 BALANCE SHEET DATE : II. REGISTRATION DETAILS REGISTRATION NO. 2005 C. MALHOTRA DGM . incidental expenses and advances against capital assets.Finance S. 3 1 0 3 2 0 0 5 RIGHTS ISSUE N I L PRIVATE PLACEMENT 3 4 2 0 0 TOTAL ASSETS 3 0 8 0 5 7 4 RESERVES AND SURPLUS N I L UNSECURED LOANS N I L STATE CODE : 1 6 CAPITAL RAISED DURING THE YEAR (Amount in Rs.
61 (128.27) – (55.06 (69.95) – – – – – – – (128.95) – (55.11) – (69.52 – – (32. Expenses to the extent written off (Public Issue Expenses) Provision for Doubtful Debts and write offs Profit on sale of Investment Provision for Loss on Investments Operating Profit before Working Capital changes Adjustments for : Trade Receivables Other Receivables Other Current Assets Inventories Trade and other Payables – – – – – – – – – – – – (38.27) Amounts recoverable from Pool Account Cash generated from operations Provision for taxes (Net) Cash Flow before extraordinary items Extraordinary items Net Cash from operating activities (A) Cash Flow from Investing Activities Purchase of Fixed Assets (incl.49) (40.11) 193 .11) – (69.27) – (55.16) 15.27) – – – – – – – – – – – – (29.67) (0.Cash Flow Statement for the year ended 31st March.63) (55. Capital Work in Progress/excluding interest capitalised) Sale of Fixed Assets Preliminary expenses Purchase of Investment Redemption of Investments Interest received on Fixed Deposits Interest received on Investments Dividend received Net Cash used in investing activities (B) 20.01) – 1.61 – – – – – – – 20.11) – (69. 2005 Rupees in Millions 2004-05 2003-04 Cash Flow from Operating Activities Net Profit before Tax and Extraordinary items Adjustments for : Depreciation/Amortisation Interest Dividend received Deletion of Fixed Assets/CWIP Interest received on Long Term Investments Interest received on Fixed Deposits Misc.
53rd Annual Report 2004-05 Cash Flow Statement for the year ended 31st March.16 – – – – 0.56 0.42 – – 0. 2005 Rupees in Millions 2004-05 Cash Flow from Financing Activities Proceeds from issue of Share Capital : – Share Allotment/Call monies (incl.42 – – 0.20 – – – – – – 34. 2005 S.46) 198.) Proposed public issue expenses Repayment of Loans Loans raised during the year Interest other than for Long Term Loans Interest on Long Term Loans (including interest capitalised) Dividends paid Net Cash used in financing activities (C) Net Increase/(Decrease) in Cash and Cash equivalents [(A) + (B) + (C)] Cash & Cash equivalents as on 1st April (Opening) : Cash on Hand Balances with Scheduled Banks – On Current Accounts – Others Balances with other Banks Overdrafts from Banks 2003-04 34.14 – 0.90 (0.16 Cash & Cash equivalents as on 31st March (Closing): Cash on Hand Balances with Scheduled Banks – On Current Accounts – Others Balances with other Banks Overdrafts from Banks 0.10 0.14 – 0.20 (0.40 Net Increase/(Decrease) in Cash and Cash equivalents (0. Vender Gupta & Associates Chartered Accountants Lalit Kumar Partner Place : New Delhi Date : May 09.10 – – – – 0.46) For R.Finance 194 .44) – – – – – 198. Malhotra DGM .46 0. Share Premium) – Excess Share Application Money (adj.40 0.56 0.
07.29 – – – – – – – – 15.2005 Review of Accounts of Guru Gobind Singh Refineries Limtied for the year ended 31st March. (Addendum to the Directors' Report dated May 09.93 – 292.40 – – – – – – – – 15. 1956 on the accounts of Guru Gobind Singh Refineries Limited for the year ended 31st March. of India ii) OIDB iii) Foreign Currency Loans iv) Cash Credit v) Others d) i) Current Liabilities & Provisions ii) Provision for Gratuity Total As at 31st March.61 – 307. 1956 on the accounts of Guru Gobind Singh Refineries Limited for the year ended 31st March.90 – 295. (A. Singh) Principal Director of Commercial Audit & Ex-officio Member. 2005 by the Comptroller and Auditor General of India Note: Review of Accounts has been prepared without taking into account the qualifications contained in the Statutory Auditor’s Report. 2003 LIABILITIES a) Paid up Capital i) Government ii) Others b) Reserves & Surplus i) Free Reserves and Surplus ii) Share Premium Account iii) Capital Reserve c) Borrowings from i) Govt. 2004 As at 31st March. Audit Board-II. 2005) I have to state that the Comptroller and Auditor General of India has no comments upon or supplement to the Auditor’s Report under Section 619(4) of the Companies Act.71 – – – – – – – – 12./Crores As at 31st March.K. 2005.05 195 . New Delhi Place : New Delhi Date : 19.C & AG's Comments Comments of the Comptroller and Auditor General of India under Section 619 (4) of the Companies Act. 2005 – 272. 2005.34 – 308.53 – 287. FINANCIAL POSITION The table below summarises the financial position of the Company under broad headings for the last three years: Rs. 1.
269.99 As at 31st March.143.97 289.97 crores and Rs. Decrease in Capital work-in progress is due to sale of Steel plates to HPCL.289.81 137.69 0.96 crores.52 2.93 (14. Working capital (m-d(i)) Capital employed (g+i+k+p) Net worth (a+b(i)+b(ii)-n-o) Net worth per rupee of Paid up Capital (in Rs.05 (2.56 crores.293. 2003 ASSETS e) Gross Block Less : Depreciation f) Net Block g) Capital work in progress h) i) Producing properties : ii) Less : Depletion iii) Net Amount i) Pre-producing properties j) Investment k) Deferred Tax Asset l) Current Assets.56) 143. 4. The increase in networth was due to increase in paid up capital of the Company.12) 155.11 crores respectively.06 6. WORKING RESULTS Working results of the Company during the last three years are given below: i) ii) iii) iv) v) vi) vii) viii) Sales Less : Excise Duty Net Sales Other or Misc.00 158. The net worth of the Company for the year 2002-03. The increase in capital employed was due to increase in working capital.72 – – – – – – 8.53rd Annual Report 2004-05 Review of Accounts Rs. 2004 162. Rs. 2005 164. Income Profit/Loss before tax and prior period adjustment Prior period adjustment Profit/Loss before tax and after prior period adjustment Tax provisions 2002-03 – – – – – – – – 2003-04 – – – – – – – – 2004-05 – – – – – – – – 196 .96 269.00 2.60 – 307.97 2.60 – 308.99 2. 2003-04 and 2004-05 was (-) Rs.84 crores.22 2.69 crores respectively.58 138.70 4.84 0.88 – – – – – – 0.42 – – – – – – 10.69 293.99 As at 31st March. The working capital of the Company for the year 2002-03. 2003-04 and 2004-05 was Rs.61) 150. Loans and Advances m) Misc.2.150. (-) Rs.61 crores and (-) Rs.14.25 157./Crores As at 31st March.52 125. 3. 2003-04 and 2004-05 was Rs.7. The Capital employed of the Company for the year 2002-03. The increase in working capital during 2004-2005 was due to decrease in Current Liabilities.155. Rs.56 – 287.) 160.11 0.12 158. 2.90 (7. Expenditure not written off (accumulated project expenditure) n) Accumulated loss Total o) p) q) r) 1.69 crores and Rs.12 crores respectively.
/Crores 3.30) – 5./Crores 2002-03 2003-04 2004-05 ix) Profit after tax – – – x) Prepaid dividend – – – As the Management of the Company has put on hold all the major activities pertaining to the refinery. SOURCES AND USES OF FUNDS Sources of Funds (Equity contribution) Funds from operations Profit after tax Capital reserve addition Project Expenditure written off Depreciation (Increase) Deferred Tax Asset Increase in Borrowings Total Utilisation of funds Increase in Fixed Assets Increase in Working Capital Investment Repayment of OIDB Loan Increase in Misc.Review of Accounts Rs. 3.55 1.42 – – – – 2.06 2003-04 0. expenditure (Project Expenditure) Decrease in Capital work-in-progress Total Nil Nil Nil Nil Nil Nil Rs. RATIO ANALYSIS Some important ratios on the financial health and working of the Company at the end of last 3 years are given below : Percentage 2002-03 A) Liquidity Ratio Current Ratio : (Current Assets to Current Liabilities and Provisions and Interest Accrued and due but excluding Provision for Gratuity) 0.) of Rs.13 – – 5. 100 each 4.55 197 .51 2004-05 0.83 B) Debt Equity Ratio Long Term Debt to Net Worth [c(i) to c(v) but excluding the Short-Term Loans] C) Profitability Ratio Profit before tax to a) i) Capital Employed ii) Net Worth iii) Sales b) Profit after tax to equity capital c) Earnings per share (in Rs.36 5.49 – – (1. hence there was no sales/income.
6.76 Sales Percentage of Debtors to Sales – – – 2002-03 2003-04 2004-05 – – – The Sundry debtors have increased from Rs.2. (A. SUNDRY DEBTORS Year Debts Considered good – 2.95 6.2005 198 .95 crores in 2003-2004 to Rs. INVENTORY Inventory position as at the end of last three years was as follows: i) ii) iii) iv) Stores and Spares Capital Stores Stock-in-trade Others 2002-03 – – – – 2003-04 – – – – 2004-05 – – – – As the Management of the Company has put on hold all the major activities pertaining to the refinery. Audit Board-II.76 Provision for Doubtful Debts – – – Total Debtors – 2.95 6. hence there was no sales/income.53rd Annual Report 2004-05 Review of Accounts Rs.K. Singh) Principal Director of Commercial Audit & Ex-officio Member.07. New Delhi Place : New Delhi Date : 14.76 crores in 2004-2005 6./Crores 5.
Mgmt. Director (Dev. 3. of Attendance Board Meetings at the last Meetings attended AGM held Details of Directorships in Companies Memberships held in Committee as specified in Clause 49 of the Listing Agreement Nil Shri M.) 4 2 Yes 1. of No.D.Sc.. BPCL 3. 2004 25th January.E. 3.Corporate Governance Your Company adopts the best corporate governance practices in order to maintain transparency. (Mech. Mohanty** M. 2005 These meetings were attended by the members of the Board. Tankiwala Managing Director B. 4 3 Yes Chairman Audit Committee : a) HINCOL b) PPCL Member Audit Committee : GGSRL Dr. Ahmedabad) B. Lal Chairman Shri M. accountability and ethics.C. PPCL 1.A. 2004 26th October. 2.S. M. HPCL 2. (Eco) 3 1 No 1.S. 2005.A.B. A. 1. 4. SALPG Nil 4 4 No Nil Shri D. 4. Ramulu Director A. as under : Names of Directors Academic Qualifications No. Puri* Director DME 4 4 Yes 1.Tech. 2. PGDBM (IIM. PGDPE Shri N. B.Sc. Director M.E.) Ph. A.B. Board Meetings : During the year ended 31st March.K. 2004 28th July. HPCL PMHB MRPL BGL SALPG HPCL HINCOL PPCL SALPG Member Audit Committee : GGSRL Nil 1 1 No Shri C. BLIL Member Audit Committee : a) GGSRL b) HPCL c) BLIL Member Investor Grievance Committee : HPCL 199 . 5. HPCL 2. (Chem). HPCL 2. HINCOL 3. Mathur B.A. four Board Meetings were held on the following dates : 29th April.C.
Director . Delhi Power Co.09. Chaudhr y*** Director B.S. Chairman Shareholders' Investor Committee : Rain Calcining Ltd. Petroleum House 17. Eco. 5. of No. Audit Committee : An Audit Committee has been constituted comprising of the following members: 1.110 001. K. 3. where last two Annual General Meetings of the Company held : Year 2002-03 Location Kailash Building.Sc.2003 Time 5. 2.00 p. ** Ceased to be Director effective 29/10/2004. KSK Energy Ltd.Member of the Audit Committee The Committee reviewed the accounts for the financial year 2004-05 of the Company before it was submitted for consideration of the Board. Nil Shri T. C. Sankar.53rd Annual Report 2004-05 Corporate Governance Names of Directors Academic Qualifications (Contd. Date 08. (Mech. 3 3 Yes Nil * Retired on attaining the age of superannuation on 30/04/2004. 26.Chairman of the Audit Committee Shri D.) No.2004 3. Small Scale Sustainable Infrastructure Development Board Shri S.A.). Mumbai . Director . 200 .P. 3.L. Rain Calcining Ltd. Shri T. Ventures Ltd.m.L. Jamshedji Tata Road.30 p.) M. IAS 4 3 No 1. Ltd. Sankar M. Director . New Delhi . 2. of Attendance Board Meetings at the last Meetings attended AGM held Details of Directorships in Companies Memberships held in Committee as specified in Clause 49 of the Listing Agreement Chairman Audit Committee : a) HPCL b) Rain Calcining Ltd. HPCL 4. 7th floor. *** Appointed as Director effective 14/05/2004.G Marg.09. Mathur.Member of the Audit Committee Shri C. c) GGSRL Member Remuneration Committee : Rain Calcining Ltd. Ramulu.m. Director MA (Dev. (Chemistry).B. B.E. 2003-04 29. Details of Annual General Meetings : Location and time.400 020.
HPCL stall at the 6th International Petroleum Conference and Exhibition held in January 2005 at New Delhi (PETROTECH 2005) .
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