Annual Report 2008-2009 - Bharat Petroleum

SCHEDULE ‘X’ – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING
PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2009 (CONSOLIDATED)
A) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF CONSOLIDATION:
The Consolidated Financial Statements relate to Bharat Petroleum Corporation Limited (the Company), its
subsidiary companies and the interest of the Company in joint ventures, in the form of jointly controlled entities.
(a)
(b)
(c)
Basis of accounting:
(i)
(ii)
The Financial Statements of the subsidiary companies and the joint venture companies (JVCs)
used in the preparation of the Consolidated Financial Statements are drawn upto the same
reporting date as that of the Company i.e. 31st March, 2009 except for Matrix Bharat Marine
Services Pte. Ltd. whose accounts are drawn for the period ended 31st December, 2008.
The Consolidated Financial Statements have been prepared in accordance with the Accounting
Standards issued by the Institute of Chartered Accountants of India, and generally accepted
accounting principles.
Principles of Consolidation:
The Consolidated Financial Statements have been prepared on the following basis:-
(i) The Financial Statements of the Company and its subsidiary companies (which are not in the
nature of joint ventures) have been consolidated on a line–by-line basis by adding together the
book values of like items of assets, liabilities, income and expenses. The intra group balances and
intra group transactions and unrealised profits or losses resulting from intra group transactions
are fully eliminated.
(ii)
(iii)
(iv)
The Consolidated Financial Statements include the interest of the Company in JVCs, which has
been accounted for using the proportionate consolidation method of accounting and reporting
whereby the Company’s share of each of the assets, liabilities, income and expenses of a jointly
controlled entity is considered as separate line items in the Consolidated Financial Statements.
The share of equity in the subsidiary companies as on the date of investment, being in excess
of the cost of investment of the Company, the difference is recognised as “Capital Reserve on
Acquisition of Subsidiaries” and shown under the head “Reserves and Surplus” in the Consolidated
Financial Statements.
Minority interest in the Net Asset of consolidated subsidiaries consists of the amount of equity
attributable to the minority shareholders as on the dates on which investments are made by
the Company in the subsidiary companies and further movements in their share in the equity
subsequent to the dates of investments as stated above.
The subsidiary companies and the JVCs which are included in consolidation and the percentage of
ownership interest therein of the Company as on 31st March, 2009 are as under:
Subsidiaries
Percentage of ownership interest as on
31/03/2009 31/03/2008
Numaligarh Refinery Limited (NRL) 61.65 61.65 India
Bharat PetroResources Limited (BPRL) 100.00 100.00 India
Bharat PetroResources JPDA Limited (Note i) 100.00 100.00 India
Country of
Incorporation
BPRL International BV (Note i) 100.00 – Netherlands
BPRL Ventures BV (Note ii) 100.00 – Netherlands
BPRL Ventures Mozambique BV (Note ii) 100.00 – Netherlands
136 Bharat Petroleum Corporation Limited