Hindustan Petroleum Corporation Ltd
Chairman Speech
Dear Shareholders,
It gives me great pleasure to present the 71st Annual Report on the
performance of your Company for the year 2022-23. Your Company continues to ‘Deliver
Happiness' ensuring the availability of affordable energy to meet the nation's energy
needs. Our sustained efforts during the year have seen your Company mount new peaks of
success and register several ‘best ever' milestones and significant achievements
across all spheres of business.
The global economy grew by 3.4% in 2022 despite the multifarious challenges posed by
geopolitics, the associated inflationary pressures and economic woes in countries around
the world. With a growth rate of 7.2%, India's output rebounded to its pre-pandemic level
in 2022-23, reinforced by the government's capex push and resilient private consumption.
Moreover, the world's second-largest vaccination drive, with more than 2 billion doses,
also served to lift consumer sentiment, which helped prolong the rebound in consumption.
India was the fastest-growing major economy in 2022-23, despite the three shocks of
COVID-19, the geo-political challenges, synchronized policy rate hikes to curb inflation,
etc.
Escalated geopolitical tensions and resultant financial volatility led to a significant
surge in the prices of oil and other commodities at the end of the previous financial
year. The prices of crude oil continued their rising trend in 2022-23, with benchmark
crude prices averaging US$ 96.2 per barrel, the highest since 2013-14. The price
volatility was substantial, with crude prices peaking at US$ 123.7 per barrel in June 2022
and reaching a level of US$ 78.6 per barrel by March 2023. Against the backdrop of the
increased prices and volatility of global crude prices, India's petroleum product
consumption also hit a new record in the financial year 2022-23, reaching the highest-ever
level of 222.3 MMT. HPCL continued to meet the nation's energy needs even while marketing
margins were suppressed for certain petroleum products.
I am happy to share that while navigating these challenging environments, Gross sales
of your Company registered a growth of 24.7% in 2022-23, rising from Rs.3,72,642 Crore in
2021-22 to Rs.4,64,684 Crore, reaching a new peak. Your Company achieved its highest-ever
annual sales of 43.45 MMT during the period, with a growth rate of 11% compared to the
historical. The highest-ever crude throughput of 19.09 MMT was achieved by our refineries,
which is 36.7% higher than the 13.97 MMT of crude processed during the previous year.
Average GRMs for 2022-23 were US$ 12.09 per barrel compared to US$ 7.19 per barrel during
the corresponding period of the previous year, recording an increase of 68.2%. The
exceptionally high international oil prices along with suppressed marketing margins on
select transport fuels, severely impacted the profitability, resulting in Net Loss of Rs.
8,974 Crore in 2022-23.
In a noteworthy development, the ongoing Visakh Refinery Modernization Project (VRMP)
attained the critical milestone of commissioning the 9 MMTA Crude Distillation Unit
(CDU-4), which is highly energy efficient. On the operations front, our refineries at
Mumbai and Visakhapatnam recorded an excellent performance, clocking the highest-ever
combined refining throughput of 19.09 MMT and capacity utilization of 107%. Meticulous
crude sourcing, right crude mix and expeditious evacuation of finished products, duly
complemented by improved refinery reliability and standardized operating processes, were
the key contributors to the performance of refineries. With the stabilization of the
expanded capacity, Mumbai Refinery achieved its highest ever annual crude throughput of
9.8 MMT. The highest production of MS, HSD and LOBS was achieved during the year.
Your Company recorded robust growth in sales across various business lines during
2022-23 on the back of a wide array of customer-centric initiatives supported by a strong
supply chain network. Market sales have touched a new peak of 43.45 MMT during the year,
recording the highest-ever sales for major products. The growth was 11% in comparison with
sales achieved in the previous year. In retail business, the year 2022-23 saw the highest
sales volume of 28.2 MMT. Sales of petrol and diesel increased by 16.2% and 16.5%
respectively and LPG sales growth was 4.9%. The domestic LPG segment gained market share
for the seventh consecutive year. Your Company is the second-largest LPG marketer in the
country. Your Company maintained its dominance in lubricant sales and continued to occupy
the leadership position in the market, recording year-on-year growth of 16% and a market
share increase of 2.48%. During the year, the Industrial & Consumer (I&C) business
line recorded overall sales of 4.32 MMT. With the continuing recovery in air travel, HPCL
achieved ATF sales of 692.5 TMT during 2022-23, registering a growth rate of 33.1% over
the previous year.
HPCL continues to lay strong emphasis on operational efficiency & cost optimization
towards achieving operational excellence. Both refineries are taking part in a performance
benchmarking study by M/s. Solomon Associates, USA, to achieve reliability and operational
excellence. Refineries are also participating in the
Refinery Performance Improvement Programme (RPIP) to optimize processes and improve
energy consumption. During the year, your Company recorded significant gains in overall
throughput performance and productivity across the network of depots & petroleum
product pipelines. An all-time high throughput of 57.3 MMT was achieved in 2022-23 in the
supply & distribution of petroleum products, which ensured uninterrupted product
availability throughout the country. Your Company recorded the highest-ever pipeline
throughput of 23.25 MMT as compared to 19.91 MMT in 2021-22, thus registering a YOY growth
of 16.8%.
Safety, health and environment are high priorities for HPCL and your Company has taken
several steps in this direction. The Vulnerability Index (VI) for job safety monitoring
has been implemented in refineries in 2022-23. The VI helps in identifying potential
safety risks and hazards in operations, enabling proactive mitigation measures, thereby
ensuring a safer workplace. With 35.6 million man-hours of safe operation as of 31st March,
2023, Mumbai Refinery has achieved its best-ever safety performance. To enhance safety in
operations at terminals, depots and retail outlets, various steps were taken, such as
interlocking of various equipment and alarm systems in the terminal/depot premises,
SOP-based hands-on training for all operating staff, training on safe driving for tank
truck drivers, monitoring of tank truck movement through a vehicle tracking system, etc.
To ensure availability and seamless & cost-efficient distribution of petroleum
products across the country, your Company has significantly expanded the refining and
supply chain infrastructure during the year with a capital expenditure of Rs. 14,043 Crore
(including equity investment in its JVCs and subsidiaries) in 2022-23. As part of the
Visakh Refinery Modernization Project (VRMP), a new Crude Distillation Unit (CDU-4) has
been commissioned. Three new LPG plants with a combined capacity of 360 TMTPA were
commissioned during the year at Barhi (Jharkhand), Patalganga (Maharashtra) and Sitarganj
(Uttarakhand). Additionally, LPG storage capacity was augmented by 9.8 TMT with the
commissioning of 21 mounded storage vessels at nine different locations. A new POL depot
at Sitarganj in Uttarakhand was commissioned during the year and the existing POL depot at
Kozhikode in the state of Kerala was revamped. With the addition of new aviation refueling
facilities at Kannur (Kerala) and Mopa (Goa), your Company now has 54 Aviation Service
Facilities (ASFs), including defense and open-access locations. The commissioning of the
697 km long Vijayawada Dharmapuri pipeline (VDPL), along with a major greenfield terminal
at Dharmapuri and the 650 km long Hassan Cherlapalli LPG pipeline (HCPL), helped increase
the operating cross-country pipeline network to 5,132 km.
HPCL continues to improve customer reach by adding new customer touchpoints such as
retail outlets, LPG dealerships, etc. During 2022-23, HPCL commissioned 1,161 retail
outlets, taking the total to 21,186 retail outlets as of 31st March, 2023,
making us the second-largest retail network owner in the country. Your Company
commissioned 45 new domestic LPG distributors during 2022-23, taking the total to 6,283.
Your Company enrolled 25.98 Lakh new LPG customers during the year, enhancing customer
reach, thereby taking total LPG customer base to over 9.3 Crore. To tap the non-domestic
segment, a record 51 non-domestic distributors were
Your Company is well aligned with the Government of India's plans to increase the
percentage of natural gas in the country's energy mix in recognition of its valuable role
in mitigating climate change, improving air quality, enhancing energy security and
providing cleaner transportation solutions commissioned during the year, taking the total
to 328.
Your Company is cognizant of the importance of environmental sustainability for the
health of our planet, the well-being of current and future generations and the
preservation of ecosystems and biodiversity. Towards this objective, various initiatives
were undertaken by HPCL in the areas of carbon footprint reduction, energy efficiency,
water conservation, waste management, renewable energy, etc. Equal focus is thrust on the
triple bottom line framework of financial, social and environmental capital towards
greater business values. Your Company is also actively participating in the ‘Mission
LiFE' movement to bring lasting change in individual behaviors to the forefront of the
global climate action narrative and to meet the objectives of the nation's sustainable
development agenda.
Your Company is well aligned with the Government of India's plans to increase the
percentage of natural gas in the country's energy mix in recognition of its valuable role
in mitigating climate change, improving air quality, enhancing energy security and
providing cleaner transportation solutions. HPCL is participating in the entire value
chain of the natural gas business by setting up a LNG import and regasification terminal
through a 100% subsidiary, participating in natural gas pipelines through joint ventures
and expanding its presence in the CGD business. The 5 MMTPA LNG terminal at Chhara,
Gujarat, being constructed through our subsidiary company, HPCL LNG Limited, achieved
mechanical completion in March 2023. HPCL, along with its JVs, has the authorization for
CGD presence in 23 geographical areas in 12 states of the country. As of 31st
March, 2023, HPCL and its JVs had 535 CNG outlets and about 6.4 lakh PNG connections in
the geographical areas allocated to HPCL and JVs. On an all India and standalone basis,
CNG facilities were added by HPCL at 301 retail outlets during the year, taking the total
number of HPCL retail outlets with CNG facilities to 1,387.
Given the market's projected expansion and the present low per capita consumption of
petrochemicals in the country, your Company has prioritized expanding its petrochemical
portfolio. Large-scale investments are underway for building petrochemical manufacturing
capacities through the joint venture route. For marketing HPCL's own-produced and
externally sourced petrochemical products, the ‘Route to Market' strategy has been
developed and is under implementation. In line with strategic roadmap, your Company
entered petrochemical marketing in 2022-23 with the launch of the ‘HP DURAPOL' brand.
The Government of India is promoting the usage of biofuels in transportation sectors to
contribute to energy security, sustainable energy, environmental conservation, climate
change mitigation and social benefits. Your Company is actively participating in the
initiative with action on various fronts. HPCL achieved ethanol blending of 10.59% by
blending 129 crore litres of ethanol in Motor Spirit (MS) in 2022-23. HPCL is also
actively participating in the Government of India's SATAT (Sustainable Alternative Towards
Affordable Transportation) initiative for the promotion of Compressed Bio Gas (CBG).
Letters of Intents (LOIs) were released for the setting up of 63 CBG plants in 2022-23,
taking the total to 476 and plant capacity to 943 TMTPA. Your Company is constructing a
second-generation ethanol biorefinery at Bathinda, Punjab, with a production capacity of
100 kiloliters per day of ethanol from biomass. I am happy to share that your Company has
completed the construction of a compressed biogas plant (CBG) with a 100 TPD biomass
processing capacity at Budaun, UP. Setting up a CBG plant with 100 TPD of cow dung
processing capacity at Pathmeda, Rajasthan, under the CSR scheme is in progress.
Your Company is actively harnessing renewable energy sources to reduce carbon
footprints and electricity costs across the value chain. During 2022-23, 30 MWp of captive
solar power capacity was installed across various locations, taking the total to 84 MWp as
of 31st March, 2023. During 2022-23, our 100.90 MW wind power capacity
generated about 18.29 crore KWh of electricity. Solarization of 4,067 retail outlets was
undertaken in 2022-23, whereby about 49% of the total retail outlets have been solarized.
EV (Electric Vehicle) charging facilities are now available at 2,037 retail outlets of
HPCL.
Your Company has embraced the principles of DEI (Diversity, Equity and Inclusion) to
foster innovation, engage employees, attract top talent, enhance reputation and meet legal
& societal expectations. These principles and practices make your Company more
dynamic, resilient and better equipped to navigate the challenges of a diverse and rapidly
changing world
HPCL focuses on research & development to create an enduring advantage for our
business. Your Company has a state-of-the-art HP Green Research & Development Centre
(HPGRDC) in Bengaluru to provide advanced technical support to marketing SBUs and
refineries. With the commissioning of seven labs in Phase 2, the state-of-the-art HPGRDC
has 14 labs in various areas. During 2022-23, 33 new products and technologies were
developed and launched and 36 patents were granted to HPGRDC, taking the cumulative
patents granted to 160 as of 31st March, 2023.
Your Company is successfully treading the digital transformation journey towards
improving processes, increasing productivity, enhancing customer value and convenience.
The digital transformation journey encompasses multiple layers, such as modernization of
the technological foundation of your Company, reimagining and redesigning existing
processes to leverage the capabilities of digital technologies and improving the
interactions & experiences that customers have with HPCL. As part of modernization of
the technological foundation, ‘Aarohan', our
ERP Modernization Project which aims at building a robust digital foundation for the
Company, has been completed successfully.
HPCL has 64 ‘SMART' terminals in our network, enabling us to increase operational
efficiency, optimize cost and ensure safety & stakeholder convenience. On the process
front, video analytics of forecourt operations have been further extended to include
safety aspects of retail outlet operations as well. HPCL is the first oil company in the
industry to use drones to survey a section of the Rewari-Kanpur pipeline network. To
enable effective inventory management of products across the supply chain, an AI/ML based
demand forecasting solution has been implemented that predicts the demand for various
products at the granular level of fuel stations, LPG distributorships and institutional
customers with high accuracy. AR/VR based training and simulation facilities have been
installed at Mumbai and Visakh refineries to create a virtual plant environment where
employees can undertake training and equipment operations safely before working in the
actual plant. Towards an enriching customer experience, the powerful loyalty and payment
program ‘HP Pay' is being leveraged to provide complete fuel management solutions to
customers in the form of an unbeatable combination of control, convenience, security and
attractive reward points.
Your Company has always been a Corporation with conscience, firmly believing that
business priorities can co-exist with social commitments and inclusive growth. As part of
Corporate
Social Responsibility (CSR), your Company has undertaken various activities during the
year under the focus areas of childcare, education, health care, skill development,
environment & community development and sports, thus positively influencing the lives
of less privileged. During 2022-23, Rs. 155 Crore has been spent on CSR activities by
HPCL.
Large-scale energy projects are essential for India to meet its growing energy demand,
diversify its energy sources, improve energy access, stimulate economic development,
create jobs, enhance energy security and promote environmental sustainability. Against
this backdrop, your Company has taken up a number of projects to meet the growing energy
demand of the country. The Visakh Refinery Modernization Project (VRMP) to enhance the
refining capacity to 15 MMTPA is in an advanced state of completion. A 9 MMTPA grass-root
refinery and petrochemical complex being set up by HPCL Rajasthan Refinery Limited (HRRL),
a joint venture company between HPCL and the Government of Rajasthan, at Pachpadra in
Barmer District of Rajasthan. The construction activities are progressing in full swing at
the site. A number of projects are underway to strengthen our distribution network. These
include the Bathinda-Sangrur product pipeline, the Haldia-Panagarh LPG pipeline, the
revamping of Raipur and Vashi POL terminals, new LPG plants at Varanasi (Uttar Pradesh)
and Abu Road (Rajasthan) and the 80TMT LPG Cavern at Mangalore. The 5 MMTPA LNG
regasification terminal at Chhara, Gujarat, has reached mechanical completion and has
moved into the commissioning phase. The 370 TPA green hydrogen plant at the Visakh
Refinery is in an advanced stage of completion. With respect to alternative fuels and
energy storage, new avenues of value creation in the electric vehicle (EV) ecosystem,
including battery swapping and energy storage solutions, are being explored in
collaboration with various technology start-ups, OEMs, etc.
ESG parameters are becoming more and more relevant for evaluating the performance of
organizations. Focusing on ESG helps in better risk management, enhancing reputation and
stakeholder trust, long-term sustainability and resilience and meeting regulatory
compliance & legal requirements. Your organization is integrating ESG factors into
future strategies and operations with a view to enhance competitive advantage, attracting
investors, building resilient business models and contributing to a more sustainable &
inclusive global economy. In this direction, your Company has developed a validated
roadmap for achieving Net Zero in Scope 1 and 2 emissions by 2040. Enhancing energy
efficiencies in operations, using renewable power in refineries, replacing hydrogen
requirements with green hydrogen, reducing flare gas emissions and abating emissions by
CCU/offsetting are the key levers identified for achieving Net Zero. To accelerate the
energy transformation journey, your Company has established a new ‘Energy Transition
Cell' dedicated to achieving the company's Net Zero goals. The incorporation of a wholly
owned subsidiary, subject to the approvals from Competent Authorities, for consolidation
of all green and emerging business opportunities under one umbrella is being planned.
Your Company continues to explore new business models to stay competitive, respond to
changing market dynamics, drive innovation and maximize growth opportunities. Towards this
objective, a roadmap was developed for unlocking value in lubricant business. In-principle
approval has been accorded for exploring options including carving out to unlock value in
the high-growth high-potential lubricant business subject to the approvals from competent
authorities.
HPCL places a strong focus on effective human capital management to ensure long-term
success in a rapidly evolving business landscape. The entire spectrum of human capital
management, including talent acquisition & retention, employee development &
growth, promotion of productivity & performance, succession planning, leadership
development, etc., are being managed with the guiding principle of ‘enabling people
performance'. Your Company has embraced the principles of DEI (Diversity, Equity and
Inclusion) to foster innovation, engage employees, attract top talent, enhance reputation
and meet legal & societal expectations. These principles and practices make your
Company more dynamic, resilient and better equipped to navigate the challenges of a
diverse and rapidly changing world.
Your Company continues to provide greater flexibility, personalized approaches and
optimum working conditions to build a stimulating work environment. The Company's
workforce has an ideal mix of experience, youthful energy, an innovative mindset and
multiple perspectives. Various employee engagement initiatives were undertaken during the
year with the objective of creating an enabling, participative, nurturing and winning work
culture in the organization. Multi-modal training methodologies such as webinars,
experiential workshops, e-modules, certifications, simulations, action learning,
drama-based workshops, etc. are undertaken with extensive use of technology for
progressive learning and building the capabilities of employees. Your Company has
partnered with various Centers of Excellence (CoE) and premier institutions to promote
industry-academia collaboration and enhance the technical and behavioral capabilities of
our employees. The keen focus of your Company on people orientation and enablement has
borne fruit in creating a pool of about 8,500 committed, dedicated and competent employees
who are the backbone of the organization.
The world economy is expected to grow by 2.8% in 2023 before settling at about 3.0% in
2024. India's economy is projected to grow by about 6% to 6.5% in 2023-24 on the back of
strong agricultural production, a post-pandemic rebound in contact-intensive services,
strengthening of private sector balance sheets and much-improved financial health of the
public sector banks, which has positioned them better to increase the credit supply and
the government's capex push. External factors that may be a drag on growth are slowing
global economy, geopolitical tensions, an upsurge in financial market volatility,
tightening global financial conditions, etc.
According to UN population estimates, India has overtaken China as the world's most
populous country. An expanding economy, urbanization and industrialization, coupled with a
rising population, will drive energy demand growth in India. India is projected to see the
largest increase in energy demand in any country in this decade. In order to meet this
demand, significant investment will be needed in all energy sources, including oil, which
currently meets one-third of India's energy needs. It also presents an opportunity for the
country to transition to a more sustainable and diversified energy mix in the long term to
meet the objectives of energy security and climate change.
Your Company is embracing responsible practices to achieve growth as they align with
the principles of sustainability, social impact and ethical business practices. The
objective is to generate shared value for its stakeholders and the broader society while
ensuring growth. HPCL is cognizant of evolving energy scenarios, changing consumer
preferences, proliferation of digital technologies and is continually remodeling its
actions to be relevant and future-ready. The strategy is to create value and deliver
growth responsibly by strengthening existing businesses, leveraging new growth engines
such as petrochemicals, natural gas and seizing green & emerging opportunities with a
focus on technology and innovation. We remain steadfast in our goal of delivering
consistent, competitive, responsible growth & value creation through sustainable business
models.
I am thankful to the Ministry of Petroleum
& Natural Gas, State Governments and various statutory and local bodies for their
guidance and support in all our efforts and look forward to their continued support in the
future as well.
I would like to thank all our customers, shareholders, business associates, employees
and other stakeholders for their unflinching commitment and support. I would also like to
convey my sincere appreciation to the Board of Directors for their guidance and mature
counsel.
I look forward to your continued support in all our endeavors to deliver happiness in
the lives of millions of people and continue our journey of shared success.
Thank you
Pushp Kumar Joshi
  Â
Hindustan Petroleum Corporation Ltd
Directors Reports
DEAR MEMBERS,
On behalf of the Board of Directors, it gives me immense pleasure in presenting this
Report on the performance of your Corporation for the financial year ended March 31, 2023.
The year 2022-23 has been a year of robust physical performance, whereby your
Corporation achieved the highest ever combined crude thruput of 19.09 MMT, with a growth
of 36.7% over previous year. Your Corporation also achieved the highest ever annual sales
of 43.45 MMT, representing a growth of 11% over previous year. These helped your
Corporation achieve highest ever ‘Revenue from Operations' of Rs. 4,66,192 Crore as
compared to Rs. 3,73,897 Crore during previous year.
Profitability for the year was impacted due to exceptionally high international crude
oil prices, suppressed marketing margins on select transport fuels, hardening of interest
rates and adverse INR/USD exchange rates, resulting into Net Loss of H 8,974 Crore for the
year.
Going forward, your Corporation has plans for value unlocking to consolidate all green
and emerging business opportunities under one umbrella as well as to derive maximum value
from high-growth high-potential lubricant business, by exploring various options
available.
HIGHLIGHTS
(Rs./ Crore)
|
Consolidated |
Standalone |
|
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
FINANCIAL PERFORMANCE |
|
|
|
|
| Sales/Income from Operations |
4,64,989.70 |
3,72,867.94 |
4,64,683.79 |
3,72,641.60 |
| Earnings before Interest, Tax, Depreciation, |
(3,249.66) |
14,141.30 |
(5,453.09) |
13,145.54 |
| Amortization & Impairment and Exceptional items |
|
|
|
|
| Depreciation, Amortization & Impairment Expenses |
(4,560.15) |
(4,000.36) |
(4,329.97) |
(3,969.11) |
| Finance Cost |
(2,174.11) |
(997.32) |
(2,131.85) |
(972.73) |
Profit before Tax (PBT) |
(9,983.92) |
9,143.62 |
(11,914.91) |
8,203.70 |
| Tax Expenses |
3,003.69 |
(1,849.39) |
2,940.88 |
(1,821.07) |
Profit / (Loss) for the year (PAT) |
(6,980.23) |
7,294.23 |
(8,974.03) |
6,382.63 |
| Balance brought forward from previous financial year |
39,300.16 |
36,068.83 |
36,590.51 |
34,271.39 |
Amount available for Appropriation |
|
|
|
|
Appropriations/ Others: |
|
|
|
|
| Debenture Redemption Reserve (net) |
30.72 |
(2.11) |
- |
- |
| Dividend |
(1,985.97) |
(3,227.20) |
(1,985.97) |
(3,227.20) |
Other Comprehensive Income that will not be reclassified to profit or
loss (net of tax) |
(183.42) |
132.27 |
(180.73) |
129.55 |
| Utilisation for shares buy-back |
- |
(932.39) |
- |
(932.39) |
| Other Appropriations |
- |
(33.47) |
- |
(33.47) |
Balance carried forward |
30,181.26 |
39,300.16 |
25,449.78 |
36,590.51 |
SHAREHOLDERS' VALUE (J) |
|
|
|
|
| Earnings per Share |
(49.21) |
51.36 |
(63.26) |
44.94 |
| Cash Earnings per Share |
(37.91) |
83.24 |
(53.14) |
76.40 |
| Book Value per Share |
227.44 |
291.88 |
195.36 |
272.65 |
PHYSICAL PERFORMANCE (MMT) |
2022-23 |
2021-22 |
| Market Sales (including Exports) # |
43.45 |
39.14 |
| Crude Thruput: |
|
|
| Mumbai Refinery |
9.80 |
5.56 |
| Visakh Refinery |
9.29 |
8.41 |
| Total Crude Thruput |
19.09 |
13.97 |
SALES/INCOME FROM OPERATIONS
Your Corporation has achieved Sales/Income from Operations of Rs. 4,64,683.79 Crore in
the financial year 2022-23 as compared to Rs. 3,72,641.60 Crore in the financial year
2021-22 on a standalone basis.
PROFIT / (LOSS)
Your Corporation has reported Earnings before Interest, Tax, Depreciation &
Amortization and Impairment (EBITDA) of Rs. (5,453.09 Crore) in the financial year 2022-23
as against Rs. 13,145.54 Crore in the financial year 2021-22 and Profit/(Loss) for the
year of Rs. (8,974.03 Crore) in the financial year 2022-23 as compared to Rs. 6,382.63
Crore in the financial year 2021-22 on a standalone basis.
DIVIDEND
The Board of Directors, after taking into account the Financial Results of the
Corporation, has not recommended any dividend for the financial year 2022-23. A final
dividend of Rs.14 per share was recommended for the financial year 2021-22.
INTERNAL RESOURCES GENERATION
Your Corporation has generated Internal Resources (net of dividend payout) of Rs.
(9,524.80 Crore) during the financial year 2022-23 as compared to Rs. 7,622.63 Crore
during the financial year 2021-22 on a standalone basis.
CONTRIBUTION TO EXCHEQUER
Your Corporation has contributed a sum of Rs. 92,204.21 Crore to the exchequer during
the financial year 2022-23 by way of duties and taxes, as compared to Rs. 85,745.58 Crore
during the financial year 2021-22 on a standalone basis.
REFINERY PERFORMANCE
In the financial year 2022-23, your Corporation's Mumbai and Visakhapatnam refineries
demonstrated exceptional performance in their refining operations, showcasing an
impressive improvement. A significant milestone was achieved by the refineries, as they
recorded the highest-ever refining throughput of 19.09 MMT. The Mumbai refinery achieved a
remarkable feat with highest-ever crude thruput of 9.80 MMT during FY 2022-23, immediately
after expansion of refining capacity to 9.50 MMT. It is also noteworthy that Mumbai
refinery achieved highest ever crude thruput in each of the successive quarters of FY
2022-23. The Visakh refinery also exhibited excellent performance by processing a crude
thruput of 9.29 MMT with an impressive capacity utilization of 111.9%. These exceptional
accomplishments contributed to the production of the highest-ever volumes of MS, HSD, and
LOBS during the financial year 2022-23.
In March 2023, your Corporation accomplished a significant milestone by successfully
commissioning a state-of-the-art Crude Distillation Unit with a capacity of 9 MMTPA as
part of the ongoing Visakh Refinery Modernization Project (VRMP). Prior to the
commissioning of the Crude Distillation Unit, your Corporation successfully commissioned
other critical systems, including, Grid Power connectivity, Raw Water, Bearing Cooling
Water, Sea Cooling Water, Plant Air/ Instrument Air Cryogenic Nitrogen Unit, and a
state-of-the-art "Staged Flare". The other units of the VRMP are in the advanced
stages of commissioning.
The Mumbai Refinery achieved outstanding performance during the financial year 2022-23
by surpassing numerous previous best performance milestones for unit thruput and
production through optimum asset utilization. The annual production of LPG, MS, HSD, and
LOBS reached the highest-ever level for the Mumbai Refinery. Further, in January 2023, the
Visakh Refinery achieved the highest-ever monthly production of MS. In addition to these
remarkable achievements, six new crudes, including, Ural, Amenam Blend, Egina, Tupi, Novy
Port, and Sokol, were processed for the first time in our refineries.
Your Corporation's refineries are committed to promote sustainable practices and
effective energy utilization. Through consistent implementation of energy conservation
recommendations, the Mumbai and Visakh Refinery achieved impressive energy savings of
46,262 and 38,780 SRFT/year (Standard Refinery Fuel Tonnage per year) respectively in the
financial year 2022-23.
Refineries prioritize safety and continually seek to enhance safety practices. Your
Corporation successfully implemented the Vulnerability Index (VI) for job safety
monitoring. Additionally, during the financial year 2022-23, Mumbai Refinery achieved the
highest-ever safety record, completing 35.6 million man-hours of safe operation, a
remarkable accomplishment.
Environmental protection remains a top priority at our refineries, and your Corporation
is committed to reduce the carbon footprint and promote sustainable practices. During the
financial year 2022-23, the Mumbai Refinery commissioned rooftop solar panels with a
capacity of 700 KW. Furthermore, the Mumbai Refinery continued to source more than 70% of
its power requirement from the grid. Additionally, as part of the Visakh Refinery
Modernization Project (VRMP), the Visakh Refinery commissioned a project to connect the
refinery power to grid at 220KV levels.
At Refineries, we recognize the transformative power of digital acceleration, and we
are committed to embrace the latest digital technologies to optimize our operations and
enhance our performance. During the financial year 2022-23, your Corporation has made
digital acceleration a top priority and launched several initiatives to achieve our
digital acceleration objectives. As part of this journey, Virtual Reality Training
facilities were launched recently in both Mumbai and Vishakhapatnam Refineries.
Refineries are constantly striving to enhance their refining capacity and achieve new
milestones. In line with this commitment, your Corporation is setting up a new 9 MMTPA
grass root Refinery-cum-Petrochemical Complex through its joint venture company, HPCL
Rajasthan Refinery Limited (HRRL), in Pachpadra, Barmer District of Rajasthan, in Joint
Venture with the Government of Rajasthan. The project has already made significant
progress, with major process turnkey contracts and LSTK contracts for associated
works/utilities already in place. Construction work is underway at the site in full swing.
The particulars with respect to conservation of energy, technology absorption, imported
technology, research & development expenditure, foreign exchange earnings & outgo
are furnished in Annexure I. The particulars relating to control of pollution and
other initiatives by refineries are furnished in
Annexure II.
OPERATING PERFORMANCE OF REFINERIES
Parameter |
Unit |
Mumbai Refinery |
Visakh Refinery |
| Crude Thruput |
TMT |
9,804.3 |
9,286.6 |
| Capacity utilization |
% |
103.2 |
111.9 |
| Distillate yield |
% |
77.4 |
68.0 |
| Fuel & Loss |
% |
7.40 |
7.54 |
| Specific Energy |
MBTU/ |
76.0 |
79.12 |
Consumption |
BBL/ NRGF |
|
|
| Gross Refinery Margin |
$/BBL |
14.82 |
9.20 |
(Before factoring-in impact of export levies) |
|
|
|
MARKETING PERFORMANCE
Your Corporation recorded the highest ever sales of 43.45 MMT in FY 2022-23, including
exports (2021-22: 39.14 MMT). In the domestic segment, your Corporation recorded the
highest ever volumes of 42.19 MMT (2021-22: 37.42 MMT) with a YoY growth of 12.8% and
achieved a market share gain of 0.94% amongst Industry. During the year, the global
geopolitics held centre stage leading to volatility in crude oil prices, new energy supply
dynamics and increased focus on energy security. Despite the heightened price and margin
fluctuations witnessed by the oil and gas industry, your Corporation has continued to meet
the market demands and ensured the availability of petroleum products across its network.
In the motor-fuel segment, your Corporation achieved the highest ever sales volume of
27.4 MMT in FY 2022-23 with a market share gain of 0.28% on a Total Motor Fuels on
Industry basis. During the year, 1161 Retail Outlets were commissioned taking the total
retail network to 21186 numbers. As part of the energy transition process, your
Corporation is in the forefront to provide alternate fuels in its Retail network and make
them Energy Stations. During the year, 301 CNG facilities were added at Retail Outlets and
EV Charging Systems (EVCS) were added at 1026 Retail Outlets. Your Corporation has also
bagged an order for installation of EV chargers in 10 parking lots of Brihanmumbai
Municipal Corporation.
Your Corporation launched ‘poWer95', a high 95 octane premium branded petrol,
adding to the bouquet of premium offerings to the esteemed customers. In our endeavour
towards low carbon economy, solar panels were installed at 4064 Retail Outlets during the
year, taking the total number of Retail Outlets with solar power to 10475 which accounts
for more than 49% of the total Retail network. Your Corporation has carried out
digitization of Earth Pit testing, a critical safety requirement, and has onboarded 11,279
Retail Outlets onto a digital platform. This was implemented by onboarding electrical
contractors in the VA (Visual analytics) portal enabling them to conduct on-line testing
of Earth Pit resistance. Your Corporation also introduced co-branded credit cards viz.
HPCL BoB Energie, HPCL-IDFC First Power and First Power+ on the Indian RuPay platform.
Your Corporation has signed an MoU with HDFC AMC Ltd. for mutual fund sales and with M/s
Petromin Corporation, Saudi Arabia for exploring setting up of vehicle service centres in
Retail Outlets of the Corporation and collaboration in the field of e-mobility.
In LPG business vertical, your Corporation has set a new record with highest ever sales
of 8.1 MMT, registering a growth of 4.9% over the previous year which is highest amongst
the industry. ‘HP Gas' has enrolled over 25.98 lakh new customers during the year
which includes 14.96 lakhs customers under ‘Pradhan Mantri Ujjwala Yojna (PMUY 2.0)'.
To meet the growing LPG demand, your Corporation has commissioned 3 LPG Plants during the
year, namely 120 TMTPA capacity LPG Plant at Barhi, Jharkhand; 180 TMTPA capacity LPG
Plant at Patalganga, Maharashtra; and 60 TMTPA capacity LPG Plant at Sitarganj,
Uttarakhand. Additionally, 21 mounded storage vessels were commissioned at 9 different
locations augmenting the LPG storage capacity by 9.8 TMT. Your Corporation sustained its
leadership position in the FTL segment, selling over 5.5 million ‘APPU' cylinders and
achieving a market share of over 44%. Your Corporation has commissioned 45 new domestic
and 51 non-domestic LPG distributors, totalling to 6283 domestic LPG distributors and 328
LPG non-domestic LPG distributors. Your Corporation has conducted several health and
safety campaigns, including over 1,043 Sadak Suraksha Camps for LPG transporters and crew.
Your Corporation has added fire extinguishers to its LPG allied business product line to
support safety in customers' premises.
In the Lubricant segment, your Corporation has recorded an overall sales volume of 632
TMT of lubricants during FY 2022-23, including exports of about 6 TMT to 18 countries.
Your Corporation has achieved the highest ever sales to countries in the Middle East
region and Africa via its Dubai based 100% subsidiary. Your Corporation has signed a
Trademark Licensing Agreement with Chevron Corporation, allowing it to manufacture,
distribute and market Chevron's lubricant products under the Caltex brand, complementing
its existing product portfolio, especially in the competitive Bazaar segment. The
commercial production and sales of Diesel Exhaust Fluid (DEF) was scaled up for second
year in a row, recording highest ever sales of more than 25 TMT during the year.
Your Corporation strengthened and widened the geographical reach of its Lubes marketing
network by adding 36 new Channel Partners.
In the Industrial and Consumer (I&C) business line, your Corporation recorded
overall sales of 4.32 MMT. The strategy of maximizing volumes of Furnace Oil and Bitumen
has helped in surpassing the 1.2 MMT and 1.5 MMT sales respectively in these products.
Highest ever sales of 27 TMT were recorded in the speciality product line of Hexane. Your
Corporation has forayed into marketing of Petrochemical products with the launch of the HP
DURAPOL brand and has commenced sales of Polypropylene and Polyethylene in the key markets
of Maharashtra and Gujarat. Your Corporation also launched new products like HP Super
Solvent, LSHS Premium, Marine Bio Fuel and Warm Mix Additive with differentiated
characteristics for meeting the unique needs of its customers. In order to widen the
infrastructure reach, your Corporation started MTO rake unloading facilities at Dharmapuri
and Vadodara, commissioned LDO rake receipt and Tank Truck loading facility at Haldia and
Hexane tankages at Akola and Sitarganj depots.
In the Aviation business, your Corporation has achieved ATF sales of 693 TMT during FY
2022-23, registering a growth of 33.1% over the previous year. ASF network has now spread
to 54 locations across the country by adding 5 nos. Air Force stations and two new
locations of Kannur and Mopa during the year. HP Aviation was bestowed with the "Best
Aviation Fuel Provider" award from ASSOCHAM. HP Aviation operates a unique, single
point 24 x 7 contact service ‘HP Aviation Hub' to meet the customers' requirements
and all its operations are as per the stringent global standards.
In the Gas business, your Corporation has marketed 257 TMT of Natural Gas,
strengthening its presence in this business segment. Your Corporation is building City Gas
Distribution (CGD) networks in 13 Geographical areas (GAs) in 7 States (viz. Haryana,
Uttar Pradesh, Uttarakhand, Bihar, Rajasthan, Jharkhand and West Bengal). During the year,
your Corporation has commissioned 86 new CNG stations in the GAs authorized to it, taking
the total number of CNG stations in authorized GAs to 209. Additionally, 2110 inch-km of
steel pipeline, 1233 KM of MDPE pipeline was added and 22,733 new PNG connections were
released during the year. Your Corporation is also operating a network of one mother
station and 18 daughter booster stations in and around the city of Ahmedabad. Currently,
CNG is being dispensed through 1387 Retail Outlets on pan-India basis.
For import and regasification, your Corporation is building a 5 MMTPA LNG
Regasification Terminal at Chhara Port in Gujarat through its 100% subsidiary, which has
been mechanically completed in this year. Your Corporation has commenced gas supply to 19
new customers during the year and supplied 212 TMT of natural gas to these customers
during the financial year. The Corporation is sourcing natural gas through various
contracts, including a long-term gas sourcing contract from ultra-deep-water fields in KG
Basin and other indigenous sources to meet its captive and marketing requirement. Your
Corporation also commenced sourcing and marketing of gas through Indian Gas Exchange.
Supply, Operations & Distribution (SOD) Department of your Corporation ensures
effective petroleum product distribution and marketing across India. Your Corporation has
a robust supply chain and infrastructure of over 81 locations, ensuring seamless product
movement with assured Quality and Quantity at optimum cost. Your Corporation achieved an
all-time high thruput of 57.3 MMT in financial year 2022-23 with a growth of 13.9% and
ensured uninterrupted product availability across the country. Your Corporation also
achieved an overall ethanol blending percentage of 10.59%, exceeding the MoU parameters
set by the GoI. It received recognition from CII for exemplary performance in improving
ethanol logistics in the country. Your Corporation has leveraged technology for enhanced
productivity with 64 ‘SMART' terminals in its network. Two new locations of
Dharmapuri Terminal in Tamil Nadu and Sitar Ganj Depot in Uttarakhand were commissioned
during the year and the Kozhikode Depot was recommissioned after a major revamp. To ensure
correct quality and quantity of fuel delivered, your Corporation has installed upgraded
Vehicle Tracking System with AIS-140 compliant devices and Electro Mechanical Locking
systems for all Tank Trucks across all locations. Safety measures have also been
undertaken to enhance safety in all operations, including interlocking of equipment and
alarm systems, SOP-based training, and safe driving training for Tank Truck drivers.
Your Corporation's Pipeline vertical has performed admirably by increasing its network
to 5,132 KM with the commissioning of major pipeline projects of Hassan Cherlapally
Pipeline (650 KM) and Vijayawada Dharmapuri Pipeline (697 KM). With these commissionings,
petroleum-product-pipeline mainline capacity has gone up to 35.2 MMTPA. During the year,
your Corporation has achieved all time high annual thruput of 23.25 MMT against previous
year thruput of 19.91 MMT, thus registering a Y-o-Y growth of 16.8%. Your Corporation is
further expanding the pipeline network and capacities for enhanced logistic efficiencies
and associated environmental benefits. The major ongoing pipeline infrastructure projects
include (i) Barmer Palanpur Pipeline (ii) Bathinda Sangrur Pipeline and (iii) Haldia
Panagarh LPG Pipeline. These pipeline projects will increase HPCL's pipeline capacity to
over 40 MMTPA and network length to about 5,600 kilometres, thereby, significantly
strengthening your Corporation's position in key markets. Your Corporation has also teamed
up with other PSU OMCs in development of India's longest LPG pipeline from Kandla to
Gorakhpur (2,805 km) through joint venture route.
Towards environmental protection and energy security of the nation, your Corporation is
promoting biofuels in a big way. Your Corporation has successfully mechanically completed
its first Biomass based Compressed Biogas (CBG) Plant located at Budaun, Uttar Pradesh.
This CBG Plant has a processing capacity of 100 Tons/day (TPD) of lignocellulosic biomass
which will produce about 14 TPD of CBG. During the year, your Corporation has achieved
Ethanol blending of 10.59% by blending 129 crore litres of Ethanol in Motor Spirit (MS).
Your Corporation has also sold 274816 KL of Biodiesel blended HSD. A new grade of
Bio-marine fuel for bunker use has been launched by your Corporation. Your Corporation is
actively participating in the Indian government's SATAT initiative to promote CBG and has
released Letters of Intent (LOIs) for setting up 63 CBG Plants during the year, taking the
total number to 476 with capacity of 943 TMTPA. Your Corporation is also constructing a
second-generation Ethanol bio-refinery in Bhatinda, Punjab. Additionally, your Corporation
is setting up a waste-to-biogas plant at Yerada Park in Vizag, Andhra Pradesh and a CBG
Plant of 100 TPD of cow dung processing capacity under the CSR scheme at Pathmeda,
Rajasthan. Your Corporation has signed an MoU with National Agriculture Cooperative
Marketing Federation of India (NAFED) for collaboration in biomass/feedstock sourcing and
marketing of end products. The goal of these initiatives is to develop green and cleaner
fuels, reduce waste, control pollution, promote organic farming, and provide additional
income to farmers.
For leveraging Renewable energy (RE) sources to reduce the carbon footprints and
electricity cost across the value chain, your Corporation has installed captive solar
power capacity of 30.34 MWp across various locations during the year, taking the total
solar power capacity to 84.355 MWp as of 31st March,
2023. In wind power, 18.29 Crore KWh of electricity was generated through 100.90 MW of
installed wind power capacity. Your Corporation has signed MoUs with the Government of
Andhra Pradesh and NTPC Green Energy Ltd for collaboration in the renewable energy sector,
paving the way for sizeable investments in Andhra Pradesh with a focus on solar and hybrid
RE projects.
TREASURY MANAGEMENT
The year witnessed high international oil prices accompanied with policy tightening by
central banks across the globe. This resulted in additional working capital requirement
for your Corporation in an environment of increasing interest rate. Further, your
Corporation is in the midst of high capex phase with major expansion plans in Visakh
refinery and marketing locations, including cross-country pipelines.
The long term fund requirement was met through a mix of instruments including
Non-convertible debentures aggregating to H 8,200 Crores, Term Loans from banks
aggregating to H 7,300 Crores and ECB amounting to US$ 200 million; these loans were
availed at very competitive rates.
Your Corporation effectively used a variety of borrowing instruments to optimize its
cost of working capital. The short-term borrowing requirements were met through Triparty
Repo System, Clearcorp Repo Order Matching System, Commercial Papers and Revolving Line of
Credit in USD, and Working capital facility from banks.
As of March 2023, your Corporation commands international long term issuer rating of
"Baa3" with "Stable" outlook from Moody's Investors Services, and
"BBB-" with "Stable" outlook from Fitch Ratings. Both ratings are at
par with sovereign rating.
Your Corporation continues to command highest domestic rating for long term
("AAA" with "Stable" outlook) and short term ("A1+")
facilities from CRISIL, India Rating and Research Private Limited and ICRA.
INTERNAL FINANCIAL CONTROLS
Your Corporation has adequate Internal Financial Controls for
ensuringtheorderlyandefficientconductofitsbusinessincluding adherence to the Corporation's
policies; the safeguarding of its assets; the prevention and detection of frauds and
errors; the accuracy and completeness of the accounting records and the timely preparation
of reliable information, commensurate with the operation of your Corporation. As part of
this exercise, the design of internal controls and its operating effectiveness for the key
business processes is tested by reputed external consultant who observed that there are no
material weaknesses in Internal Controls over Financial Reporting.
RISK MANAGEMENT POLICY
We operate in a dynamic environment which not only provides opportunities but also
exposes the business to various risks. Your Corporation recognizes that all aspects of its
business involve significant risks and that its actions are increasingly exposed to
greater scrutiny by the public, regulators, investors, and its stakeholders. To
proactively identify and manage key risks for achieving our strategic objectives and
enable the Corporation to deal with these enhanced business challenges and risks, an
effective and pragmatic risk management process has been institutionalized across the
organization.
Your Corporation has updated the existing Enterprise Risk Management (ERM) framework by
adopting the best practices recommended by international standards such as COSO ERM 2017
and ISO 31000:2018 Framework. The updated ERM Policy covers all types of risks impacting
the strategic objectives and performance of the organization, including but not limited to
- operational, regulatory, financial, sectoral, strategic, sustainability in particular
ESG (Environmental, Social and Governance) related risks, information and cyber security
related risks and business continuity plan. The aim is to integrate risk identification
and management in the day-today management of the business, wherein risk is identified,
assessed, continuously monitored, graded and managed to an acceptable level. Reputed
professional external consultants have also been engaged to establish a mechanism to bring
the outside view to effectively enhance the visibility of external business risks and
support the change management in the transformation of existing ERM processes.
Your Corporation undertook workshops across SBUs and updated the risk registers in
light of changing trends and risk areas. The Risk Management Committee meets periodically
( at least twice in a year) to ensure that appropriate methodology, systems and processes
are in place to monitor these risks as well as monitor the progress of implementation of
various mitigation steps. Additionally, The Board is also updated regularly on the risk
assessment and mitigation procedures of the identified risk and a summary of the Board
reportable risks is also placed before the Audit Committee for information. Keeping with
global best practices, technology remains at the forefront to support the Enterprise Risk
Management processes with a focus on optimizing risk exposures and automating risk
reporting across the organization.
VIGILANCE
The Vigilance mechanism in your Corporation is based on the directives issued by the
Central Vigilance Commission (CVC), Department of Personnel & Training (DoPT) and
Ministry of Petroleum & Natural Gas (MoP&NG) from time to time.
The Vigilance Department is headed by the Chief Vigilance Officer (CVO) who administers
supervision and control of all the Vigilance matters in the Corporation. Vigilance
Department carries out focused preventive vigilance activities which help in ensuring
transparent business decisions by respective Departments.
Apart from conducting preventive vigilance activities, the major work areas of
Vigilance comprise of investigation of complaints received from various sources like
Citizens, Stakeholders, Central Vigilance Commission, Ministry of Petroleum & Natural
Gas, Management and other sources etc.
The Vigilance Department deals mainly with matters related to corruption and matters
having ‘Vigilance angle' as per Vigilance Manual (Updated 2021). The complaints are
handled as per the complaint handling policy stipulated in the Vigilance Manual (Updated
2021) of the Central Vigilance Commission. There were 557 complaints disposed-off during
the financial year 2022-23 and 30 complaints are pending as of 31.03.2023. These cases are
related to Retail Outlet selection, Retail Outlet operations, LPG Distributorship
selection, LPG Distributorship operations, tendering, transportation, Depot/Plant
operations etc.
Various operating areas were reviewed for systemic improvements during the year. Apart
from investigating complaints, surprise inspections of Depots, Terminals, LPG Plants,
Regional Offices, LPG Distributors, Retail Outlets, Tank Trucks, Major Works (CTE Patten),
Tender Review etc. were carried out. Various focused group-training programs were
conducted for employees.
Vigilance Awareness Week was observed under the central theme for the year "Corruption
Free India for a developed Nation". Various outreach activities viz., focused
group presentations, Quizzes, Drawing/ Painting Competitions, Skits/ street plays,
Workshops, Technical talks, Grievance redressal camps/ Awareness Gram Sabhas, Rallies/
Walkathons, School/ College Programs etc. were undertaken during the week to spread
awareness among citizens/stakeholders and employees.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
Your Corporation, being a Government Company, is subjected to the CVC Guidelines and
the Corporation has a separate Vigilance Department administering the Vigilance matters.
Your Corporation has a Whistle Blower Policy approved by the Board and the same is placed
on the website of the Corporation. The web link of Whistle Blower Policy is stated herein
below:
Web link: https://www.hindustanpetroleum.com/documents/ pdf/Whistle_Blower_Policy.pdf
RIGHT TO INFORMATION (RTI)
Your Corporation being a public authority has a structured mechanism in place to deal
with matters related to the RTI Act in line with the provisions under the Right to
Information Act,
2005. Your Corporation has aligned with the Online RTI portal of DoPT, Government of
India and all RTI applications/ First appeals received through the portal are handled
through the portal itself, including the physical applications received offline. The
mandatory reports such as Quarterly/ Annual reports are submitted periodically within the
stipulated timelines onto the website of the Central Information Commission (www.cic.gov.
in). In addition, as required under the Act, all the relevant details and information
mandated through suo - motu disclosures under Section 4 (1) (b) have also been hosted on
the Corporate website (www.hindustanpetroleum.com) for the purpose of transparency and
better understanding by the public at large.
Your Corporation has a designated Nodal Officer at its Headquarters' Office to
coordinate, facilitate and oversee implementation of RTI Act. The RTI applications are
addressed on the Online RTI Portal (www.rtionline.gov.in) within the stipulated time
period of 30 days. A team of 225 Central Public Information Officers (Regional Managers
and HoDs who predominantly constitute as CPIOs ) and 42 First Appellate Authorities
(Senior Management who constitute FAAs ) spread across the country, covering Refineries,
major SBUs like Retail and LPG and other Departments ensure seamless and effective
handling of the RTI applications received.
During the financial year 2022-23, your Corporation has successfully handled and
processed 2892 RTI applications, 391 First Appeals and 93 Second appeals [CIC (Central
Information Commission) Hearings]. All the 93 CIC Hearings were held thru VC by the
Hon'ble CIC while the CPIOs were physically present in respective NIC studios located at
various District Collectorate offices, wherein the detailed Written Submissions were
submitted in time to the Hon'ble CIC for all the Hearings, to enable CIC to pass awards.
INDUSTRIAL RELATIONS
Your Corporation has continued to enjoy excellent Employee Relations during the year
with no reported instance of industrial unrest at any of its operating locations. Your
Corporation lays great emphasis on continually engaging, enabling and empowering its
stakeholders through a variety of interventions. Your Corporation is happy to inform that
a New Career Development Policy was signed with the Unions representing non-management
employees under Marketing Division, during financial year 2022-23. Your Corporation could
also successfully conclude discussions with the Unions, on modifications of various
clauses of Certified Standing Order of Mumbai Refinery with a view to imbibe discipline at
workplace. It is also a matter of great pride for the Corporation that under the aegis of
Central Vigilance Commission, your Corporations' in-house faculties conducted Training
Programs for IOs/POs on Departmental Enquiries for various CPSEs/Government Organisations.
Your Corporation demonstrated strong sense of Corporate Responsibility by travelling
beyond statutory requirements as recently evidenced in coverage of all our direct and
indirect stakeholders with Medical Insurance coverage, Ex-Gratia compensation in case of
untoward accidents, organizing special medical camps, etc., even post pandemic. Also,
towards further improving engagement levels of outsourced workers in Corporation &
encourage the meritorious children, a "Merit Scholarship Scheme" was introduced
during the financial year for grant of one-time Scholarship to meritorious children of
contract workers who passed 10th / 12th or Diploma / Degree.
OFFICIAL LANGUAGE IMPLEMENTATION
The usage of Hindi is ensured in the business of your Corporation by motivating the
employees through persuasion, incentive and harmony and Hindi is being promoted by
utilizing various facilities available in the field of Information & Technology
including Video Conferencing. To promote the linguistic talent of the employees, awareness
about Hindi is created in the offices through on-line Hindi Competition, Hindi Fortnight,
Official Language Conferences and Hindi Workshops etc.
During the financial year 2022-23, your Corporation was conferred with ‘Petroleum
Rajbhasha Shield – First Prize' for implementation of Official Language for the year
2021-22 by MOP&NG. This award is given for the best performance in the field of OLI
(Official Language Implementation) amongst Oil PSUs. Your Corporation is coordinating Town
Official Language Implementation Committee (TOLIC) of Mumbai based PSUs since 1983 and
thereby guiding 65 Mumbai based PSUs in the field of Official Language Implementation.
Other than the TOLIC Meetings, your Corporation has trained the officials of different
PSUs by conducting various programs such as Hindi Translation, Promotion of Hindi and
Regional Language etc.
Your Corporation has maintained its record in the entire Oil Industry by receiving 57
Rajbhasha Awards from Government of India and other Agencies.
CORPORATE SOCIAL RESPONSIBILITY
Your Corporation has always strived to be a model of excellence and a catalyst of
transformation in all its endeavors, be it business prosperity or its commitment to the
society. Your Corporation has always believed in creating shared values and Delivering
Happiness through its various initiatives that have touched millions of lives.
Your Corporation implemented various activities under the focus areas of Child Care,
Education, Health Care, Skill Development, Sports, Environment & Community
Development, Contribution to incubators or research and development projects in the field
of science, technology, engineering and medicine, funded by the Central Government or
State Government or Public Sector Undertaking or any agency of the Central Government or
State Government; and Contributions to public funded Universities.
As a responsible Corporate Citizen, your Corporation implemented more than 100 CSR
projects under the annual common theme ‘Health Care' in line with Guidelines on CSR
Expenditure by Department of Public Enterprises, Government of India. Across the country,
various medical devices and equipment were procured and provided to Primary Healthcare
Centers, Community Healthcare Centers, District Hospitals to meet the grassroot healthcare
needs in local and remote areas surrounding our business locations like Terminals, Depots,
LPG Plants, Pipelines, Aviation Stations, Lube Blending Plants etc. among others.
During the year, your Corporation under Project ‘ADAPT', endeavored to enhance the
quality of lives of Children with Special Needs (CwSN) through education, individual
training and therapeutic treatment.
Under Project ‘Nanhi Kali', adolescent girls were provided with remedial classes,
material kits, sports curriculum training and counselling sessions on personal hygiene and
career development.
Your Corporation distributed more than 16,000 Scholarships to students from various
socially-economically disadvantaged sections like SC, ST, OBC and PwD across the country,
giving support to the students for their Education from School-Level to Professional
courses. Your Corporation has also provided basic facilities like furniture items,
teaching aids, water coolers etc. in various schools for benefit of students in rural
areas.
Your Corporation continued its collaboration with Indian Army for Project ‘Kashmir
Super-50 Medical'. Under the project, aspiring students from Union Territory (UT) of Jammu
& Kashmir are provided mentoring and coaching for Medical stream. This residential
training program gives wings to academic aspirations of youth for their career
development.
Your Corporation also reached out to the last mile and collaborated with Indian Army
for Project Ladakh Ignited Minds Super- 45 ‘Medical & Engineering' for the
less-privileged students of UT of Ladakh. Under this project, your Corporation supports
the Indian Army's initiative in ‘Winning Hearts and Minds' of the local population.
This project supports the less-privileged yet aspiring students of Ladakh Region in
enabling them to compete in various streams like Engineering, Medical and other
career-oriented programs.
The year saw commencement of similar residential project in Kargil District of UT of
Ladakh exclusively for girl students and in Rajouri District, UT of Jammu & Kashmir
for coaching the deserving youth in streams like Engineering, Medical and other
career-oriented programs.
To provide basic healthcare facilities in remote rural areas, Mobile Medical Vans were
operated under ‘Project Dhanwantari' to provide diagnosis, treatment and health
awareness at the doorsteps of less privileged people.
Under Project ‘Dil without Bill', support was extended for conducting heart
surgeries of beneficiaries from lower-economic section with special focus on children.
Your Corporation supported Skill Development Institute (SDI) conceptualized by
Government of India and operationalized by Oil & Gas CPSEs focused on imparting skills
in industry-oriented trades for improving employability of weaker sections of the society.
SDI Visakhapatnam is being managed by your Corporation along with support of other Oil
& Gas CPSEs. More than 3,800 students were trained in various trades for their
employment enhancement at SDI Visakhapatnam.
During the year, your Corporation commenced the work towards establishment of
Compressed Bio - Gas (CBG) Plant at Village Pathmeda, District Jalore, Rajasthan. It is
envisaged that this project shall provide purified Bio-Gas in rural areas which shall be
produced from Waste / Bio-mass sources like agricultural residue, cattle dung etc.
Your Corporation supported the Har Ghar Tiranga Campaign (13th – 15th
August, 2022) by providing National Flags to school students and general public in cities
and villages, encouraging the spirit of patriotism under the aegis of ‘Azadi Ka Amrit
Mahotsav'.
During Swachhta Pakhwada Campaign (1st - 15th July, 2022), there
was outreach of more than 20 Lakh stakeholders across the country. Various awareness
generation activities were undertaken, like administration of Cleanliness pledge,
providing Masks and Hygiene kits to support fight against Covid-19. Pitching of seed balls
and Sapling Plantation was carried out to promote green environment along with various
competition on Slogan Writing, Elocution, Drawing etc. under the theme of
‘Swachhta'.
Contribution was made to the Armed Forces Flag Day Fund for the care, support, welfare
and rehabilitation schemes for Ex-Servicemen (ESM) and their dependents.
Awards & Accolades:
Your Corporation declared as ‘Winner' under the Category ‘1.1: Companies
having eligible CSR Spend equal and above H 100 Cr' of National CSR Awards 2020 instituted
by Ministry of Corporate Affairs, Government of India.
Your Corporation conferred with ‘Honorable Mention' for ‘Project Dhanwantari'
under the Category ‘3.4: Health, Safe Drinking Water and Sanitation' of National CSR
Awards 2020 instituted by Ministry of Corporate Affairs, Government of India.
Your Corporation bagged prestigious Award for Swachhta Pakhwada Campaign (1st
– 15th July, 2022) instituted by Ministry of Petroleum and Natural Gas.
Your Corporation bagged ‘Best CSR Integrated Business' for embedding CSR as part
of Business Operations by ‘ET Ascent National Award for Excellence'.
Your Corporation emerged as ‘Winner' of Leadership Award 2022' for Project Kashmir
Super-30 Medical - Education Adding Value to the Local Community (Education, Health,
Sports) at 11th India CSR Awards instituted by India CSR Network.
Your Corporation emerged as ‘Winner' of 9th CSR India Awards 2022 under
the category ‘Welfare of Divyangs' instituted by Greentech Foundation.
Your Corporation emerged as ‘Winner under category: CSR Commitment (Overall)' of 9th
PSU Awards instituted by Governance Now.
Your Corporation won 1st Runners-up of ‘CSR & Sustainability Award'
at 12th PSE Excellence Awards & Conclave instituted by Indian Chamber of
Commerce (ICC).
The details of CSR activities of the Corporation containing details of CSR Committee
Members (as of 31st March 2023), brief outline of the CSR policy, overview of
the CSR initiatives, prescribed expenditure, amount spent etc. that form part of this
Report are furnished in Annexure III. The Current composition of CSR Committee is
as follows:
Sl. No. |
Name |
Category |
|
1 |
Shri Ramdarshan Singh Pal |
Independent Director |
- Chairman |
2 |
Smt Vimla Pradhan |
Independent Director |
- Member |
3 |
Shri Bechan Lal |
Independent Director |
- Member |
4 |
Shri S. Bharathan |
Whole Time Director |
- Member |
5 |
Shri Amit Garg |
Whole Time Director |
- Member |
6 |
Shri K S Shetty |
Whole Time Director |
- Member |
CORPORATE GOVERNANCE
Your Corporation continues to adopt the best practices of Corporate Governance to
ensure transparency, integrity and accountability in its functioning. The Corporate
Governance Report highlighting these endeavours has been incorporated as a separate
section that form part of the Annual Report for financial year 2022-23.
PROCUREMENT OF GOODS & SERVICES FROM MSEs
The Government of India has notified a Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 and its amendments thereof. In line with said Policy, your
Corporation had set an annual goal of sourcing a minimum procurement of 25% of its total
requirements from MSEs and within it, 4% of total requirement has been earmarked for
procurement from MSEs owned by SC/ST entrepreneurs, and another 3% from women
entrepreneurs. For the benefit of MSEs, the MSE procurement details are regularly uploaded
on Sambandh Portal of Ministry of MSME, besides displaying the Annual Procurement Plan on
the Corporation's website.
Against the above set target for financial year 2022-23, your Corporation has achieved
38.97% (H 3472.43 Crore) of procurement of goods & services from MSEs excluding items
which are beyond the scope of MSEs. The excluded items are Crude Oil, Petroleum Products,
logistics cost through shipping, Railways & Pipelines, LNG/Natural Gas, API Line
pipes, OEM spares & services, proprietary items and services, Technology Licenses and
Licensor mandated items, Plant & Machinery and single item value equal to or more than
H 50 Crore. To promote the objectives of procurement from MSEs as laid down in Public
Procurement Policy, 71 Vendor Development Programs/ Buyer-Supplier meet for MSEs were
conducted during the financial year. During these meets, the Corporation's procurement
processes were articulated through detailed presentation to MSE vendors with an intent to
increase awareness of vendor registration process, tendering process, availability of
TReDS platform, procurement on GeM platform etc. Implementation of various Government
directives/policies of providing relief to MSMEs and promoting indigenization of products
and services was also explained during the programme.
Your Corporation is registered with TReDS Digital platform, an institutional mechanism
set up by Reserve Bank of India, to facilitate the trade receivable financing of Micro
Small and Medium Enterprises (MSMEs) from corporate buyers through multiple financiers.
Integrating its ERP System with that of 3 of the service providers, namely; A.Treds Ltd.,
Mynd Solutions Pvt. Ltd. and Receivables Exchange of India Ltd., the Corporation has
enabled the MSMEs to auction their trade receivables at competitive rates through online
bidding by financiers. Numerous MSME vendors have on-boarded this platform and benefitted
with the bill discounting facility that provides liquidity.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
Your Corporation has ensured compliance with various provisions under The Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. To
inculcate appropriate workplace behaviour and promote gender sensitization, your
Corporation mandated all its executive employees to undergo awareness sessions through
online courses and workshops conducted on the subject. Internal Committee (IC) of the
Corporation were reconstituted and detailed guidelines on procedures relating to the
functioning of the IC were circulated.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
Management Discussion & Analysis Report forms part of the Annual Report for FY
2022-23.
FINANCIAL STATEMENTS OF SUBSIDIARIES
In terms of Proviso to Section 136(1) of the Companies Act, 2013, your Corporation will
place separate audited Financial Statements in respect of each of its Subsidiary Company
on its website and also provide a copy of separate audited Financial Statements in respect
of each of its Subsidiary Companies to any Shareholder of the Corporation who seeks the
same. The Financial Statements of the Subsidiary Companies will also be kept open for
inspection at the registered offices of the Corporation/respective Subsidiary Companies.
Pursuant to provisions of Section 129(3) of the Companies Act, 2013, a separate
statement containing salient features of the Financial Statements of
Subsidiary/Associate/Joint Venture Companies in Form AOC-1 is attached along with
the Consolidated Financial Statements.
COST AUDIT
The maintenance of Cost Records, as specified under Section 148(1) of the Companies
Act, 2013 is mandated and accordingly such accounts and records are made and maintained.
The Cost Audit for FY 2021-22 was carried out and the Cost Audit Reports were filed with
the Ministry of Corporate Affairs within the stipulated time for filing.
DIRECTORS
Your Corporation's Board presently comprises 13 Directors.
The Whole Time Directors are Shri Pushp Kumar Joshi (Chairman & Managing Director),
Shri Rajneesh Narang (Director – Finance), Shri S. Bharathan (Director –
Refineries), Shri Amit Garg (Director- Marketing) and Shri K S Shetty (Director –
Human Resources).
The Government Nominee Directors are Smt. Sujata Sharma, Joint Secretary (M&OR) in
Ministry of Petroleum & Natural Gas (MOP&NG) and Shri Pankaj Kumar, Director
(Production) of Oil and Natural Gas Corporation (ONGC).
The Independent Directors are Smt. Vimla Pradhan, Shri Bechan Lal, Shri Vivekananda
Biswal, Shri Ramdarshan Singh Pal, Dr. Nagaraja Bhalki and Shri K S Narendiran.
As per the provisions of Section 152 of the Companies Act, Shri Rajneesh Narang is the
Director who is liable to retire by rotation at the next Annual General Meeting and being
eligible offer himself for re-appointment.
DETAILS OF CHANGES IN DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP) DURING FY 2022-23
AND TILL DATE
A) Directors
• Shri Rakesh Misri, Director – Marketing (Whole Time Director) has ceased to
be Director of your Company effective April 01, 2022 on attaining the age of
superannuation.
• Shri Mukesh Kumar Surana, Chairman & Managing Director (Whole Time Director)
has ceased to be Director of your Company effective May 01, 2022 on attaining the age of
superannuation.
• Shri Pushp Kumar Joshi, Director- Human Resources (Whole Time Director) was
appointed as Chairman & Managing Director w.e.f. May 08, 2022. He was also holding
additional charge of Director-Marketing from April 01, 2022 till December 26, 2022.
• Shri Rajneesh Narang, Director-Finance was holding additional charge of
Director-Human Resources from May 08, 2022 till April 30, 2023.
• Shri Pankaj Kumar, Director-Production, ONGC, was appointed as Government
Director of the Company effective June 22, 2022.
• Shri G Rajendran Pillai has ceased to be an Independent Director of the Company
effective July 15, 2022 on completion of tenure of office of 3 years on July 14, 2022.
• Shri Vinod S Shenoy, Director-Refineries (Whole Time Director) has ceased to be
Director of your Company effective October 01, 2022 on attaining the age of
superannuation.
• Shri S. Bharathan was appointed as Director-Refineries (Whole Time Director) on
the Board of your Company effective October 01, 2022.
• Shri Amit Garg was appointed as Director-Marketing (Whole Time Director) on the
Board of your Company effective December 27, 2022.
• ShriSunilKumar,JointSecretary-Refineries,MOP&NG, Government Nominee Director
(Representative of MOP&NG) has ceased to Director of the Company effective December
27, 2022.
• Smt. Sujata Sharma, Joint Secretary, (M&OR), MOP&NG, was appointed as
Government Nominee Director (Representative of MOP&NG) on the Board of your Company
effective December 27, 2022.
• Shri K S Narendiran was appointed as an Independent Director on the Board of
your Company effective March 15, 2023.
• Shri K S Shetty was appointed as Director-Human Resources (Whole Time Director)
on the Board of your Company effective May 01, 2023.
B) KMP
During the financial year 2022-23, apart from the details of changes as covered in
‘A' above, there were no change in the other Key Managerial Personnel.
C) Resignation of a Director who resigns from his office by giving a notice in writing
to the Company
During the year, there were no cases observed where Directors resigned from their
office by giving a notice in writing to the Company.
NUMBER OF MEETINGS OF THE BOARD
During financial year 2022-23, 12 Board Meetings were held. The details of these
Meetings are given in the Corporate Governance Report for the financial year.
MANAGERIAL REMUNERATION
By virtue of MCA Notification dated 5th June 2015, Government Companies are
exempted from complying with the requirement of Section 197 (Chapter XIII) of the
Companies Act, 2013. Hence, the Rules made thereunder i.e. Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is also not applicable
to Government Companies.
PERFORMANCE EVALUATION OF BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS
Your Corporation being a Government Company, the compliance of Section 134 (3) (p) is
exempted by virtue of MCA Notification dated 5th June 2015 as the annual
evaluation of the performance of the Board, its Committees and of Individual Directors are
carried out by the Administrative Ministry i.e. Ministry of Petroleum and Natural Gas
(MOP&NG).
DECLARATION BY INDEPENDENT DIRECTORS
Statement of declarations as required under Section 149(7) of the Companies Act, 2013
& Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 have been obtained from the Independent Directors.
POLICY FOR SELECTION AND APPOINTMENT OF DIRECTORS AND THEIR REMUNERATION
Your Corporation, being a Government Company is exempted to furnish information under
Section 134(3)(e) of the Companies Act, 2013 vide MCA Notification dated 05th
June 2015.
OPINION OF BOARD REGARDING INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING THE
PROFICIENCY) OF THE INDEPENDENT DIRECTOR APPOINTED DURING THE YEAR
Your Corporation, being a Government Company, all the Directors including Independent
Directors are appointed by Government of India.
Independent Directors are selected by search committee constituted by Government of
India from mix of eminent personalities having requisite expertise and experience in
diverse fields.
During the Financial Year 2022-2023, 1 Independent Director was appointed on the Board.
This Director has registered himself with Independent Directors Databank maintained by
Indian Institute of Corporate Affairs (IICA) of Ministry of Corporate Affairs. Out of 6
Directors, Shri Vivekananda Biswal is exempted from undergoing Proficiency Test by virtue
of proviso of Rule 6 (4) of Companies (Appointment and Qualification of Directors) Rules,
2014. Other 5 Independent Directors can undergo test within a period of 2 years from the
date of their inclusion of names in the Independent Directors' databank.
POLICY FOR REMUNERATION OF KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
Your Corporation, being a Government Company, the remuneration payable to Key
Managerial Persons and other employees are fixed by the Government of India. However,
payment like Performance Related Pay is placed for the approval of Nomination and
Remuneration Committee.
AUDIT COMMITTEE
The present composition of Audit Committee, which requires reporting under Section
177(8) of the Companies Act, 2013 is given as under:
Sl. No. |
Name |
Category |
|
| 1 |
Shri Bechan Lal |
Independent Director |
– Chairman |
2 |
Shri Vivekananda Biswal |
Independent Director |
– Member |
3 |
Shri Ramdarshan Singh Pal |
Independent Director |
– Member |
Shri Rajneesh Narang, Whole Time Director is a permanent Invitee to the Committee.
The Changes in the Composition of Audit Committee during the financial year 2022-23 and
till date are:
Shri G Rajendran Pillai, Independent Director, Chairman of the Audit Committee had held
this post till he ceased to be Director of the Company effective 15th July
2022.
Shri Bechan Lal, Independent Director, member of the Audit Committee became Chairman of
the Committee effective 15th July 2022.
Shri Ramdarshan Singh Pal was inducted into the Committee as Member effective 15th
July 2022.
During the year, there were no cases observed where Board had not accepted the
recommendations of Audit Committee. The recommendations of Audit Committee are broadly
accepted by the Board.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Regulation 24A
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your
Company has appointed M/s. Ragini Chokshi & Co., a firm of Practicing Company
Secretaries to undertake Secretarial Audit of the Company for the Financial Year
2022-2023. The Report of Secretarial Auditor in Form No. MR-3 is annexed herewith
and marked as Annexure IV.
The Report does not contain qualification, reservation or adverse remark except the
following:
The Company could not comply with the provisions of Regulation
17 (1) of SEBI LODR, 2015 for having requisite number of Independent Directors on its
Board with effect from 27-12-2022 upto 14-03-2023.
In this regard, your Company confirms that being a Government Company, which is under
the Administrative Control of Ministry of Petroleum and Natural Gas (MOP&NG), the
power to appoint Directors (including Independent Directors) and finalizing the terms and
conditions of appointment vest with Government of India. The matter regarding appointment
of required number of Independent Directors has been taken up with MOP&NG from time to
time and the Government is seized of the matter.
COMPLIANCE WITH APPLICABLE SECRETARIAL STANDARDS
Your Corporation has complied with applicable Secretarial Standards in respect of
Meetings of Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute
of Company Secretaries of India (ICSI).
C&AG AUDIT
C&AG's comment upon or supplement to the Statutory Auditors' Report on the Accounts
for the year ended 31st March, 2023 is attached along with Financial
Statements. Further, as at 31st March, 2023, there are 8 pending paras related
to the C&AG audit. These relate to encashment of Earned Leave/Half Pay leave/Sick
Leave as well as Employer's share of EPF contribution on leave encashment; non-recovery of
perquisite tax; payment of shift allowance to executives; payment of stagnation reliefs;
non-recovery of dues in a case of bank guarantee, not encashed; additional expenditures
due to non-utilisation of pipeline in economical manner; infructuous expenditure incurred
on creation of certain facilities; opportunities foregone to conserve energy. The audit
observations have been suitably replied.
RELATED PARTY TRANSACTIONS
The details of transactions entered into with the Related Parties during the financial
year 2022-23 in Form No. AOC-2 is annexed herewith and marked as Annexure V.
WEB LINK OF ANNUAL RETURN
Web link of Annual Return (MGT-7) is available at https://www.
hindustanpetroleum.com/AGMDetails
PARTICULARS OF EMPLOYEES
The details regarding the number of women employees vis-?-vis the total number of
employees is given herein under:
Group |
Total No. of Employees |
No. of Women Employees |
% of Women Employees |
| Management |
5818 |
715 |
12.29% |
| Non- |
2686 |
168 |
6.25% |
| Management |
|
|
|
TOTAL |
8504 |
883 |
10.38% |
REPORTING OF FRAUDS BY AUDITORS
During the year under review, Auditors have not reported to the Audit Committee (under
Section 143 (12) of the Companies Act, 2013) any instances of fraud committed against the
Company by its officers or employees, the details of which would need to be mentioned in
the Board's report.
DETAILS OF EACH OF THE FRAUD REPORTED TO THE AUDIT COMMITTEE OR THE BOARD DURING THE
YEAR – NIL
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013
form part of the Notes to the financial statements provided in this Annual Report.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THE
FINANCIAL YEAR AND DATE OF THE REPORT
There have been no material changes and commitments which affect the financial position
of the Corporation that have occurred between the end of the financial year to which the
financial statements relate and the date of this report.
DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND
BANKRUPTCY CODE, 2016 DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE
FINANCIAL YEAR
During the financial year, no application has been made or no proceeding is pending
under the Insolvency and Bankruptcy Code, 2016.
DETAILS OF DIFFERENCE BETWEEN THE AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME
SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL
INSTITUTIONS ALONG WITH THE REASONS THEREOF
There are no instances of one-time settlement done with banks/ financial institutions
during the financial year.
PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
The details on the performance and financial position of Subsidiary, Associate and
Joint Venture Companies are given in Management Discussion & Analysis Report. Further,
pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of the Companies
(Accounts) Rules, 2014, the salient features of Financial Statements of Subsidiary,
Associate and Joint Venture Companies in Form No. AOC-1 form part of the Annual
Report for FY 2022-23, separately.
COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR
ASSOCIATES
There are no instances of companies which have become or ceased to be your
Corporation's Subsidiaries, Joint Ventures or Associate companies during financial year
2022-23.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
During financial year 2022-23, your Corporation has not received any Order or Direction
of any Hon'ble Court or Tribunal or Regulator, which either affects your Corporation's
status as a going concern or which substantially or significantly affects your
Corporation's business operations.
DETAILS OF DEPOSITS
Your Corporation has not been accepting any Deposits, as specified in Section 73 to
Section 76 of the Companies Act, 2013 and therefore there do not call for any disclosure
of Deposits as required under Rule 8(5)(v) of Companies (Accounts) Rules, 2014.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 134(3)(c) of the Companies Act, 2013, it is
hereby confirmed that:
i. In the preparation of the Annual Accounts, the applicable Accounting Standards have
been followed along with proper explanation relating to material departures.
ii. The Directors have selected such Accounting Policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company at the end of the financial year and the
profit and loss of the Company for that period.
iii. The Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 2013
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities.
iv. The Directors have prepared the Annual Accounts on a going concern basis.
v. The Directors, have laid down internal financial controls to be followed by the
Company and that such Internal Financial Controls are adequate and are operating
effectively.
vi. The Directors have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating
effectively.
ACKNOWLEDGEMENTS
The Board of Directors gratefully acknowledge the valuable guidance and support
extended by the Government of India, Ministry of Petroleum and Natural Gas, other
Ministries, State Governments and various statutory and local authorities.
The Directors also wish to thank all dealers and distributors spread all over the
Country and the HP- Pariwar for reposing their faith, trust and confidence in the
Corporation towards improving the service to the valued Customers as well as for the
overall performance of the Corporation.
The employees of the Corporation have continued to display their total commitment
towards the pursuit of excellence. 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 Corporation to
scale even greater heights.
Your Directors are thankful to the Shareholders for their faith and continued support
in the endeavors of the Corporation.
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