Annual Report 2008-2009 - Bharat Petroleum

in the Singapore market, as well as international
bunkering including expansion in the Asian and Middle
East markets. It will also undertake development of
international bunkering facilities at Indian ports, risk
management including hedging activities, inventory
management, quality blending and freight optimization
by utilizing the back haulage of time charter vessels for
importing petroleum products in India.
The authorised capital of this company is USD 4 million
with equal contribution by both the partners. Matrix
Marine Fuels L.P. USA has subsequently transferred
their share and interest in the joint venture in favour of
Matrix Marine Fuels Pte. Ltd., Singapore, another affiliate
of the Mabanaft group. The Company has already
begun its activities of ex-pipe bunkering operations from
August, 2008. The company has recorded a turnover of
USD 67.99 million and loss of USD 0.14 million in the
first year of operation ending on 31st December, 2008.
Petronet India Limited
BPCL has 16% equity participation with an investment of
Rs.16 crores in Petronet India Limited, (PIL) a financial
holding company. PIL had facilitated pipeline access on
a common carrier principle, through its joint ventures for
the pipelines put up by them viz. Vadinar-Kandla (Sikka-
Kandla section), Kochi-Karur and Mangalore-Hassan-
Bangalore. PIL registered a net loss of Rs. 27.01 crores
for the financial year ending 31st March, 2009 as against
a net loss of Rs. 0.74 crores in the previous year.
The new pipeline policy has affected the working of
the Company. As there are no possibilities of future
projects, promoters and other investors in PIL reached a
conclusion that continuation of PIL would not be viable.
Accordingly, the winding up process has been initiated
by appointing ICICI Securities Limited as financial advisor
and consultant for the divestment of PIL’s stake in the
Joint Venture Companies.
Petronet CCK Limited
BPCL has a 49% equity stake in Petronet CCK Limited
(PCCKL) at an investment of Rs. 49 crores. The Company
owns the 292 km Kochi-Karur pipeline, which commenced
commercial operations from September, 2002. Pumping
volume during the current year amounted to 1.57 MMT
against 1.35 MMT in the previous year.
PCCKL closed the financial year ending on
31st March, 2009 with a turnover of Rs. 45.74 crores
and net loss of Rs. 3.25 crores as against a turnover of
Rs. 41.04 crores and net loss of Rs. 2.57 crores in
the previous year. BPCL has initiated steps, subject to
completion of all formalities, to purchase the 26% equity
share of Petronet India Limited in PCCKL.
CONSERVATION OF ENERGY, TECHNOLOGICAL
ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO
The details regarding energy conservation, technology
absorption and foreign exchange used and earned as
required by Section 217(1)(e) of the Companies Act,
1956, are given in Annexure A.
MEMORANDUM OF UNDERSTANDING WITH MINISTRY
OF PETROLEUM & NATURAL GAS
BPCL for the twentieth successive year has entered into
a Memorandum of Understanding for 2009-10 with the
Ministry of Petroleum & Natural Gas. The Corporation
has been achieving an “Excellent” performance rating,
since 1990-91.
PARTICULARS OF EMPLOYEES UNDER SECTION
217(2A)
Information required under Section 217(2A) of the
Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, is enclosed as
Annexure C.
CORPORATE GOVERNANCE
As required under Clause 49 of the Listing Agreement
and Department of Public Enterprises (DPE) Guidelines,
the Report on Corporate Governance, together with
the Auditors’ Certificate on compliance of Corporate
Governance, is annexed as Annexure B.
The forward looking statements made in the
‘Management Discussion and Analysis’ are based on
certain assumptions and expectations of future events.
The Directors cannot guarantee that these assumptions
are accurate or these expectations will materialize.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act,
1956, the Directors of BPCL confirm that:
1. In the preparation of the Annual Accounts, all the
applicable Accounting Standards have been followed
alongwith proper explanation relating to material
departures.
2. The Company has selected such Accounting Policies
and applied them consistently and made judgements
and estimates that are reasonable and prudent so as
to give a true and fair view of the State of Affairs of
the Company as on 31st March, 2009 and of the
Profit and Loss Account of the Company for the year
ended on that date.
3. The Company has taken proper and sufficient care
for the maintenance of adequate accounting records
Annual Report 2008-2009 17