Bharat Petroleum Corporation Ltd
Directors Reports
The Board of Directors takes pleasure in presenting its Report on the
performance of Bharat Petroleum Corporation Limited (BPCL) for the year ended March 31,
2022.
PERFORMANCE OVERVIEW Group Performance
During the year 2021-22, the aggregate refinery throughput of
BPCL's refineries at Mumbai and Kochi along with that of Bharat Oman Refineries
Limited (BORL) (proportionate share of throughput of BORL considered till June 30, 2021
and 100% thereafter since it has become a wholly owned subsidiary of the Company from June
30, 2021) was 36.90 Million Metric Tonnes (MMT), as compared to 32.98 MMT (includes the
throughput of Numaligarh Refinery Limited, which ceased to be a subsidiary of the Company
w.e.f. March 26, 2021 and proportionate share of throughput of BORL as a Joint Venture)
during the year 2020-21. The BPCL Group ended the year with market sales of 42.51
MMT, as compared to 39.05 MMT during the year 2020-21. During the year,
the BPCL Group exported 2.12 MMT of petroleum products, as against 2.00 MMT during the
year 2020-21. The growth in physical parameters is mainly on account of increase in demand
post lifting of Covid-19-induced restrictions.
During this Financial Year, the Group achieved Gross Revenue from
Operations of Rs 4,32,569.62 crore, as compared to Rs 3,04,274.46 crore in the year
2020-21. The net profit attributable to BPCL stood at Rs 11,681.50 crore in in the year
2021-22, as against Rs 16,164.98 crore in the previous year. The Group has recorded Basic
Earnings per Share of Rs 54.91 in this year, as against Rs 81.87 in the year 2020-21 and
Diluted Earnings per Share of Rs 54.91 in this year, as against Rs 81.60 in the year
2020-21 after setting off minority interest. Dilution of shares in the previous year was
on account of implementation of Employee Stock Purchase Scheme.
| CONSOLIDATED GROUP RESULTS |
2021-22 |
2020-21 |
| Physical Performance |
|
|
| Refinery Throughput (MMT) |
36.90 |
32.98 |
| Market Sales (MMT) |
42.51 |
39.05 |
| Financial Performance |
|
Rs in crore |
| Revenue from Operations |
4,32,569.62 |
3,04,274.46 |
| Profit before Finance Costs, Depreciation,
Share of profit/(loss) of equity accounted investee, Exceptional Items and Tax |
21,405.84 |
23,549.41 |
| Finance Costs |
2,605.64 |
1,723.41 |
| Depreciation & Amortization expense |
5,434.35 |
4,334.21 |
| Profit before Share of profit/(loss) of equity accounted
investee, Exceptional Items and Tax |
13,365.85 |
17,491.79 |
| Share of Profit/(loss) of equity accounted investee (net of
income tax) |
1,535.73 |
(325.53) |
| Exceptional Items - Income/(Expense) |
1,135.15 |
5,265.76 |
| Profit before Tax |
16,036.73 |
22,432.02 |
| Provision for Taxation – Current Tax |
2,706.42 |
6,165.29 |
| Provision for Taxation – Deferred Tax |
690.75 |
82.17 |
| Short/(Excess) provision for Taxation for earlier years |
958.06 |
(1,135.27) |
| Net Profit for the year |
11,681.50 |
17,319.83 |
| Non-Controlling Interest |
- |
1,154.85 |
| Net Profit attributable to BPCL |
11,681.50 |
16,164.98 |
| Other Comprehensive Income attributable to BPCL |
402.12 |
(1,279.36) |
| Total Comprehensive Income attributable to BPCL |
12,083.62 |
14,885.62 |
| Group Basic Earnings per Share attributable to BPCL (Rs) |
54.91 |
81.87 |
| Group Diluted Earnings per Share attributable to BPCL (Rs) |
54.91 |
81.60 |
Company Standalone Performance
During the year 2021-22, the refinery throughput at BPCL's
refineries at Mumbai and Kochi was 30.07 MMT, as against 26.40 MMT achieved in 2020-21.
The market sales of the Company increased by 9.73%, from 38.74 MMT to 42.51 MMT in the
year 2021-22. The growth in physical parameters is mainly on account of increase in demand
post lifting of Covid-19-induced restrictions.
BPCL's Gross Revenue from operations for the year 2021-22 stood at
Rs 4,33,406.48 crore, a 43.57% increase from the previous year's revenues of Rs
301,873.16 crore. The Profit before Tax for the year was Rs 11,913.44 crore as compared to
Rs 22,617.58 crore in the year 2020-21. After providing for Tax, (including Deferred Tax,
Short/(Excess) provision for previous years) of Rs 3,124.71 crore, as against Rs 3,575.91
crore during the previous year, the Profit after Tax for the year stood at Rs 8,788.73
crore, as against
Rs 19,041.67 crore in the year 2020-21.
| COMPANY STANDALONE RESULTS |
2021-22 |
2020-21 |
| Physical Performance |
|
|
| Refinery Throughput (MMT) |
30.07 |
26.40 |
| Market Sales (MMT) |
42.51 |
38.74 |
| Financial Performance |
|
Rs in crore |
| Revenue from Operations |
4,33,406.48 |
3,01,873.16 |
| Profit before Finance Costs, Depreciation, Exceptional
Items and Tax |
18,605.25 |
21,475.08 |
| Finance Costs |
1,860.48 |
1,328.36 |
| Depreciation & Amortization expense |
4,754.27 |
3,978.05 |
| Profit before Exceptional Items and Tax |
11,990.50 |
16,168.67 |
| Exceptional Items - Income/(Expense) |
(77.06) |
6,448.91 |
| Profit before Tax |
11,913.44 |
22,617.58 |
| Provision for Taxation – Current Tax |
2,658.00 |
5,134.78 |
| Provision for Taxation – Deferred Tax |
323.19 |
(402.98) |
| Short/(Excess) provision for taxation of earlier years |
143.52 |
(1,155.89) |
| Net Profit for the year (A) |
8,788.73 |
19,041.67 |
| Other Comprehensive Income (OCI) |
287.77 |
68.39 |
| Total Comprehensive Income for the year |
9,076.50 |
19,110.06 |
| Opening Balance of Retained Earnings (B) |
16,017.61 |
1,464.39 |
| Amount available for disposal (A+B) |
24,806.34 |
20,506.06 |
| COMPANY STANDALONE RESULTS |
2021-22 |
2020-21 |
| The Directors propose to appropriate this amount as under: |
|
|
| Towards Dividend: |
|
|
| Final Dividend of previous year |
12,581.67 |
- |
| Interim Dividends |
2,169.25 |
4,555.43 |
| Transfer to Debenture Redemption Reserve |
207.75 |
188.48 |
| Transfer to General Reserve |
3,000.00 |
- |
| Income from "BPCL Trust for Investment in Shares"* |
(224.13) |
(270.87) |
| Income from "BPCL ESPS Trust"* |
(36.06) |
(52.16) |
| Re-measurements of Defined Benefit Plans (Net of tax) |
20.94 |
67.57 |
| Closing Balance of Retained Earnings |
7,086.92 |
16,017.61 |
| Summarized Cash Flow Statement: |
|
|
| Cash Flows: |
|
|
| Inflow/(Outflow) from Operating Activities |
20,049.25 |
20,029.76 |
| Inflow/(Outflow) from Investing Activities |
(7,167.07) |
2,170.08 |
| Inflow/(Outflow) from Financing Activities |
(18,697.08) |
(15,622.27) |
| Net increase/(decrease) in cash & cash equivalents |
(5,814.90) |
6,577.57 |
* Represents addition to Retained Earnings
Profit for the current year is lower as compared to the previous year,
mainly due to the exceptional gain on the disposal of investment in Numaligarh Refinery
Limited in the year 2020-21.
Internal Generation after adjusting Interim Dividends, Final Dividend
of the previous year, Depreciation and Deferred Tax during the year stood at Rs (545.87)
crore, as against Rs 17,230.86 crore in the year 2020-21, mainly on account of the final
dividend of the previous year amounting to Rs 12,581.67 crore paid in the year 2021-22.
The Basic Earnings per Share amounted to Rs 41.31 in the year 2021-22,
as compared to Rs 96.44 in the year 2020-21. The Diluted Earnings per Share amounted to Rs
41.31 in the year 2020-21, as compared to Rs 96.12 in the year 2020-21. Dilution of shares
in the previous year was on account of implementation of Employee Stock Purchase Scheme.
The Basic and Diluted Earnings per Share are after adjustment of "BPCL Trust for
Investment in Shares" and "BPCL ESPS Trust". BPCL's contribution to
the exchequer by way of Taxes, Duties and Dividend during the year 2021-22 amounted to Rs
1,47,056.92 crore, as against Rs 1,25,583.30 crore in the previous year.
As on March 31, 2022, BPCL's total equity stands at Rs 49,669.78
crore, as against the previous year's figure of Rs 54,544.55 crore.
Dividend
The Board of Directors has recommended a Final Dividend of Rs 6 per
share (i.e. @ 60% of the paid-up share capital) for the year 2021-22 on the paid-up share
capital of Rs 2,169.25 crore, amounting to Rs 1,301.55 crore. In addition, the Board of
Directors has declared and distributed Interim Dividend during the year 2021-22 totaling
Rs 10 per equity share (i.e. @ 100% of the paid-up share capital), amounting to Rs
2,169.25 crore.
Pursuant to the Finance Act, 2020, dividend income is taxable in the
hands of the shareholders effective April 1, 2020 and the Company is required to deduct
tax at source from dividend paid to the Members at prescribed rates as per the Income Tax
Act, 1961.
The Register of Members and Share Transfer Books of the Company will
remain closed from Tuesday, August 23, 2022 to Monday, August 29, 2022 (both days
inclusive) for the purpose of payment of the final dividend for the Financial Year ended
March 31, 2022.
As per Regulation 43A of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015, the top thousand
listed entities shall formulate a Dividend Distribution Policy. Accordingly, a Dividend
Distribution Policy has been adopted to set out the parameters and circumstances that will
be taken into account by the Board in determining the distribution of Dividend to its
shareholders and/or retaining the profit into the business. The policy is available on the
Company's website at https://www.bharatpetroleum.in/bharat-petroleum
-for/Investors/DDP%20Final%20File.pdf
Transfer to Reserves
Out of the amount available in Retained Earnings, an amount of Rs 3,000
crore has been transferred to the General Reserve and Rs 207.75 crore has been transferred
to the Debenture Redemption Reserve. Further, Rs 137.50 crore has been transferred from
Debenture Redemption Reserve to General Reserve on account of debentures redeemed during
the year.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF
THE COMPANY BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE REPORT Amalgamation
of Bharat Oman Refineries Ltd. (BORL) with BPCL
BORL was incorporated in 1994 as a Joint Venture (JV) between BPCL and
OQ S.A.O.C. (formerly known as Oman Oil Company S.A.O.C.). During the year, BPCL acquired
36.62% of shares from OQ S.A.O.C, making BORL a wholly owned subsidiary of BPCL. During
the year, BPCL also acquired 2.69 crore warrants of BORL held by Government of Madhya
Pradesh (GoMP). In October 2021, Board of Directors of BORL and BPCL approved the scheme
of amalgamation of BORL with BPCL and an application was submitted to the Ministry of
Corporate Affairs (MCA). MCA, vide its Order dated February 14, 2022, directed BPCL to
convene meetings of its equity shareholders, secured creditors, and unsecured creditors
and directed BORL to convene meetings of its secured creditors and unsecured creditors. In
accordance with the Order, these meetings were convened on April 21, 2022, wherein the
resolutions, inter alia, approving the scheme of amalgamation were passed. Thereafter, the
companies filed petition with the MCA for amalgamation of BORL with BPCL.
On June 22, 2022, MCA has passed the final Order approving the scheme
of amalgamation of BORL with BPCL. The Order has been filed with the Registrar of
Companies at Gwalior and Mumbai, respectively, and BORL stands merged with BPCL effective
July 1, 2022.
The Standalone and Consolidated Financial Statements for the adoption
of shareholders at the AGM had been approved by the Board at its meeting held on May 25,
2022 whereas the final Order of the MCA approving the scheme was received on June 22, 2022
and the same was effective from July 1, 2022 as stated above.
The amalgamation of the Transferor Company shall be given effect in the
books of accounts as per the applicable accounting standards.
Since the amalgamation became effective after the Consolidated and
Standalone Financial Statement for the year 2021-22 were approved by the Board for
issuance to shareholders, the abovesaid financial statements enclosed to this report have
not taken into account the effect of the amalgamation.
Amalgamation of Bharat Gas Resources Ltd. (BGRL) with BPCL
BGRL, a wholly owned subsidiary of BPCL, was incorporated in June 2018
for handling Natural Gas business. In March 2021, the Board of Directors of BPCL and BGRL
approved the scheme of amalgamation of BGRL with BPCL with the view of streamlining of the
corporate structure and consolidation of assets and liabilities and an application was
submitted to the Ministry of Corporate Affairs (MCA) for this purpose.
MCA, vide its Order dated October 27, 2021 directed BPCL to convene
meetings of its equity shareholders, secured creditors and unsecured creditors. In
accordance with the Order, these meetings were convened on June 3, 2022 wherein the
resolutions, inter alia, approving the scheme of amalgamation were passed. Thereafter, the
companies filed petition with the MCA for amalgamation of BGRL with BPCL. The process of
amalgamation is in advanced stage now.
Strategic disinvestment of Government of lndia's stake in BPCL
The Government of lndia vide its letter dated June 3, 2022 has advised
to call off the present process for strategic disinvestment of BPCL and accordingly, all
the activities in connection with the disinvestment including the data room have been
discontinued.
EMPLOYEE STOCK PURCHASE SCHEME (ESPS)
The Company had formulated an Employee Stock Purchase Scheme (ESPS) in
line with SEBI (Share Based Employee Benefits) Regulations, 2014, which was approved by
the shareholders in the Annual General Meeting held on September 28, 2020, offering up to
4,33,85,000 fully paid-up equity shares of Rs 10 each (representing 2% of the paid-up
capital) to eligible employees under ESPS.
Based on the terms and conditions of the scheme, eligible employees
were offered 4,33,79,025 fully paid-up equity shares of face value of Rs 10 each and
3,65,42,077 shares were transferred to 7,868 employees in the year 2021-22, at an issue
price of Rs 126.54 and Rs 253.08 per share (as applicable) and Rs 462.48 crore was the
consideration received against the issuance of shares. Out of 3,65,42,077 shares
transferred, 3,31,525 shares were transferred to key managerial personnel and senior
managerial personnel. During the year, there has been no change in the BPCL Employee Stock
Purchase Scheme 2020. The scheme is in compliance with SEBI (Share Based Employee
Benefits) Regulations, 2014 and this has been certified by the statutory auditors of the
Company. The certificate of the statutory auditors can be accessed at
https://www.bharatpetroleum.in/bharat-petroleum-for/Invest
ors/Shareholders-Meetings/Annual-General-Meeting.aspx In line with Regulation 14 of the
SEBI (Share Based Employee Benefits) Regulations, 2014, a statement giving complete
details, as on March 31, 2022, is available on the website of the Company at
https://www.bharatpetroleum.in/ bharat-petroleum-for/Investors/Shareholders-Meetings/Ann
ual-General-Meeting.aspx "BPCL ESPS Trust" did not exercise voting rights in
respect of 68,36,948 shares held by it at the end of the year, on behalf of the employees.
Borrowings
Total Borrowings of the Company as on March 31, 2022 stood at Rs
24,123.09 crore as against Rs 26,314.97 crore as on March 31, 2021.
Deposits from Public
The Company has not accepted any deposit from the public during the
year. The amount of deposits, matured but unclaimed, at the end of the year were nil.
Capital Expenditure
Capital Expenditure during the year, including investments in
Subsidiaries, Joint Venture Companies (JVCs) and Associates amounted to Rs 11,860.16
crore, as compared to
_ 11,064.39 crore during the year 2020-21.
The Company has entered into a Memorandum of Understanding (MoU) with
Government of India for the purpose of performance assessment. Capital Expenditure
incurred by the Company and its proportionate share of Capital Expenditure by its
Subsidiaries (Group), Joint Ventures and Associates during the year is Rs 11,284.25 crore.
Further, intangible assets in the form of Goodwill arising on account of Business
Combination consequent to the acquisition of additional stake in BORL on June 30, 2021 is
Rs 1,203.98 crore.
Comptroller and Auditor General of India's (C&AG) Audit
The Comptroller and Auditor General of India's (C&AG) comment
upon or supplement to the Statutory Auditors' Report on the Accounts for the year
ended March 31, 2022 is appended as Annexure E.
Details of pending C&AG Audit paras: As on March 31, 2022, there
are seven pending published paras related to the C&AG audit which are appended as
Annexure F.
REFINERIES
The year 2021-22 witnessed heightened volatility in the global oil
industry, with crude and product prices building up firmly as the year progressed.
Refinery margins were subdued in the first half of the year due to Covid-19 impact and
lower demand was witnessed for products. Refineries implemented various innovative ideas
during these volatile times to increase profitability and reduce cost. Focus on increased
production of value-added products was emphasized, with Mumbai Refinery (MR) achieving
highest ever production of 342 TMT of Lube Oil Base Stock (LOBS) during the year. With the
relaxing of the pandemic related restrictions and recovery of demand for petroleum
products during the second half of the year 2021-22, refinery throughput and production
were maximized. Both the refineries of BPCL (Mumbai Refinery and Kochi Refinery) achieved
more than 100% capacity utilization during the second half of the year. During the year,
special emphasis was laid on optimization and conservation of energy, it being the second
major element of cost after crude. Various schemes were implemented in both the refineries
for improvement of Energy Intensity Index (EII) of the refineries. Kochi Refinery (KR)
achieved a reduction of 5.9 units in EII during the year. Further, digitalization
initiatives like Digital Twins and other Artificial Intelligence / Machine Learning based
solutions were implemented in refineries for value addition in the process value chain. In
the area of environment conservation, various initiatives like planting of saplings,
rainwater harvesting, use of sewage-treated water, and installation of solar power plants
were taken up by both the refineries during the year. MR received a first-of-its-kind
‘Near Zero Waste to Landfill (ZWL) certification' from M/s Intertek Testing
Services NA. Towards enhancing operational efficiencies, PDPP (Propylene Derivatives
Petrochemical Project) and NHT (Naphtha Hydrotreater) unit of MSBP (Motor Spirit Block
Project) at KR were stabilized post commissioning. Timely commissioning of the MSBP unit
assisted in meeting the increased demand of MS (petrol) during the year. KR achieved
highest ever production of MS during the year, with corresponding reduction in generation
of low value naphtha by 5%.
Commissioning of HSD Tank 12 at MR Marine Oil Terminal (MOT) provided
additional storage facility and better flexibility to export during periods of lower
domestic demand for the product.
Performance of Refineries
| Parameters |
Mumbai Refinery |
Kochi Refinery |
|
2021-22 |
2020-21 |
2021-22 |
2020-21 |
| Refinery Throughput (MMT) |
14.49 |
13.05 |
15.58 |
13.35 |
| Crude Oil Processed (MMT) |
14.43 |
12.94 |
15.40 |
13.28 |
| Capacity Utilization (%) * |
120.3 |
107.8 |
99.35 |
85.67 |
| GRM (USD/bbl) |
8.73 |
3.76 |
9.43 |
4.36 |
| GRM (in Rs crore) |
7,080 |
2,736 |
7,916 |
3,125 |
*Capacity utilization is the percentage of the actual Crude oil
processed to the installed (design) capacity.
MARKETING
The year 2021-22 was a resurgence year for BPCL, as most of the
activities were normalized during the year. Even though the year started with restrictions
in mobility, albeit limited as compared to the year 2020-21, due to the second wave of the
pandemic in the country, the economic activities regained normalcy gradually.
During the year 2021-22, BPCL's market sales volume increased by
9.73% to 42.51 MMT, as compared to 38.74 MMT in the previous year. BPCL's market
share amongst public sector oil companies improved to 24.73% as on March 31, 2022, as
compared to 24.33% at the end of previous year. In the endeavor to build additional
revenue streams while also mitigating the risks posed by energy transition, BPCL created
two Business Units (BUs) during the year – Renewable Energy and New Businesses.
Renewable Energy BU has been created to explore opportunities in the clean energy space
and pave the way to achieve BPCL's aspirations of Net Zero in Scope 1 and Scope 2
emissions by 2040. The objective for creation of New Businesses BU is to enhance the
Company's presence in non-fuel business by leveraging its assets and network. A
detailed discussion of the performance of the Marketing function is given in the
Management Discussion & Analysis Report (MDA).
Pipelines
BPCL owns a multi-product pipeline network of 2,596 km with a design
capacity of 21.3 per annum (MMTPA) and 937 km of crude pipeline with a design capacity of
7.8 MMTPA.
During the year 2021-22, product pipelines achieved a throughput of
16.54 MMTPA, as against 14.86 MMTPA in the previous year. Crude pipelines achieved a
throughput of 7.42 MMTPA as against 6.22 MMTPA in the previous year. During the year, all
standard operating procedures were strictly followed, resulting in ‘nil'
fatality and ‘nil' Lost Time Accident (LTA). 18-inch-diameter 355-km-long
Bina-Panki Multi-Product Pipeline, with a throughput capacity of 3.5 MMTPA, was
commissioned in October 2021 within approved project cost and timeline. This pipeline was
dedicated to the nation by Hon'ble Prime Minister of India on December 28, 2021. The
pipeline is connected to Bina and Mumbai Refinery and thus ensures product availability in
central and eastern Uttar Pradesh (U.P.). BPCL is always in the forefront to ensure the
security and safety of its assets. To enhance the safety and security of its cross-country
pipeline network, implementation of Fiber Optics based Pipeline Intrusion Detection
Systems (PIDS) for Mumbai-Kota and Kochi-Coimbatore-Karur Pipeline (CCKPL) sections is in
progress and on commissioning, the entire 1,389-km Mumbai-Manmad-Bijwasan Pipeline (MMBPL)
and CCKPL would be covered with PIDS. A total of 2,520 km (97%) out of the 2,596-km of
pipelines would be covered on completion of PIDS implementation by March 2023.
Further, the Company completed the re-routing of Mumbai-Manmad Pipeline
(48.5 km) during the year and has commissioned the pipeline in April 2021, which helps in
reducing the risk associated with products dispatched from Mumbai Refinery.
MAJOR PROJECTS
Details of major completed/ongoing projects during the year are given
herewith. Approved project cost indicated for each project is net of input tax credit.
• Installation of New Kerosene Hydrotreater (KHT) at Mumbai
Refinery
The project envisages new Kerosene Hydrotreater (KHT) of 1.5 MMTPA
capacity, integrated with existing Diesel Hydrotreater (DHT) at Mumbai Refinery to produce
Aviation Turbine Fuel (ATF) and Kerosene meeting sulphur specification of maximum 10 Parts
Per Million by Weight (PPMW). The approved cost of the project is
_ 667.15 crore. The project has achieved an overall physical progress
of 83% as on March 31, 2022 and is scheduled for completion in December 2022.
• Enhancing Production of Lube Oil Base Stock (LOBS) at
Mumbai Refinery
The project envisages revamp of Lube Oil Base Stock (LOBS) production
capacity from 300 thousand metric tonnes per annum (TMTPA) to 450 TMTPA at Mumbai
Refinery, which will reduce imports of LOBS. The approved cost of the project is Rs 614
crore. The project has been completed in July 2022.
• Krishnapatnam - Malkapur (Hyderabad) Multi - Product
Pipeline This project envisages laying of 425-km-long, 16-inch-diameter multi-product
pipeline for a throughput capacity of 4.4 MMTPA. Demand note was received towards land
purchase for the new POL terminal at Malkapur (near Hyderabad). A notification has been
published for Right of Use of land required for 280 km of pipeline length. M/s. Engineers
India Limited (EIL) have been appointed as the consultant for the project. Procurement of
pipes are in progress. The approved cost of the project is Rs 1,925.68 crore. The project
scope also includes construction of additional tankages at Krishnapatnam and Ongole.
• Irugur-Devanagonthi Multi-Product Pipeline
This project envisages laying a 315-km-long 16-inch-diameter
multi-product pipeline. The approved cost of the project is Rs 1,469.39 crore. This
project was on hold since December 2014 for Right of Use clearance in Tamil Nadu. The
Tamil Nadu Government has recently advised to explore the feasibility for laying the
pipeline along national highways/state highways/other roads. Accordingly, a detailed
Engineering Survey and Cadastral Survey for a revised pipeline route along highways is in
progress.
• Bina-Panki Pipeline Project
Additional tankage of 1,46,000 KL and full-rake tank wagon loading
gantry with associated facilities were commissioned along with Bina-Panki Pipeline on
December 21, 2021, ahead of the scheduled completion date and within the approved cost of
Rs 254.54 crore. The project was dedicated to the nation by Hon'ble Prime Minister of
India on December 28, 2021. This project will go a long way in enhancing product
availability in the states of U.P., Uttarakhand and Bihar.
• Creation of Additional Storage (8,250 MT) of LPG at 5 LPG
Bottling Plants
Additional storage (mounded storage vessels) of 8,250 MT at an
approximate cost of Rs 266 crore has been constructed and commissioned at Jhansi,
Bhatinda, Pune, Patna and Bhitoni LPG bottling plants. This capacity addition will support
increased LPG demand across various states.
• New Coastal POL Terminal at Krishnapatnam
To cater to the demands of Andhra Pradesh and Telengana, a coastal
terminal having storage capacity of 1 lakh KL for storing MS, HSD and other products, as
well as a full-rake loading gantry and associated facilities at an estimated cost of Rs
580.20 crore is under construction within Krishnaptanman Port. Product will be received
from Kochi Refinery through ocean tankers. The project activities are in full swing and a
physical progress of 74.6% and a cumulative expenditure of
_ 341.20 crore has been achieved as on March 31, 2022. The project is
on schedule and is expected to be completed by December 2022 within approved budget.
• New POL Depot at Radhanagar (Bokaro)
A new rail-fed depot is under construction at Bokaro (Jharkhand). The
project envisages construction of 22,000 KL tankage, a full-rake tank wagon unloading
siding and allied facilities at an estimated cost of
_ 248.55 crore. A physical progress of 69.1% and a cumulative
expenditure of Rs 221 crore has been achieved as on March 31, 2022. The project is
expected to be completed by March 2023. This project will go a long way in increasing
product security in the State of Jharkhand.
• 2G/1G Intergated Ethanol Bio-Refinery at Barghar, Odisha
BPCL is the first oil company to set up an integrated ethanol manufacturing plant (2G/1G)
at Bargarh, Odisha, of a cumulative capacity of 200 Kilo Litre Per Day (KLPD). As on March
2022, the overall physical progress stood at 45.94% and financial progress at 30.59%.
Environmental Clearance has been received for the project. The approved cost of the
project is Rs 1,397 crore. Project activities are in full swing and the project is
expected to be completed by June 2023 within approved cost.
• Debottlenecking and Augmentation of Cryogenic facilities
at Uran LPG Import Terminal
The LPG Terminal at Uran is the only LPG import handling infrastructure
owned by BPCL on the west coast and this terminal is very critical for meeting the LPG
requirement of the western, northern and southern parts of the country. Augmenting the LPG
handling capacity of this terminal is of utmost importance to ensure uninterrupted and
smooth supply-chain operations to meet the ever-growing LPG demand in these regions. The
project envisages laying of insulated pipelines from Jetty to Uran Terminal (12.5 km),
construction of two 15,000 MT double-walled insulated storage tanks and allied facilities
at Uran Terminal along with associated facilities. Necessary approval from statutory
authorities has been obtained for the construction of project and activities have
commenced. The application for seeking Coastal Regulation Zone (CRZ) approval for laying
jetty pipelines is under active consideration. The project is estimated to be completed by
February 2024.
• Common User Facility POL Terminal at Jammu
This project envisages re-siting of existing rail-fed depots of PSU Oil
Marketing Companies (OMCs) – BPCL, IOCL & HPCL – to new POL Terminal at
Jammu on Common User Facility (CUF) basis, with BPCL as lead company. The facility will
strengthen the marketing logistics infrastructure in the Union Territories of Jammu &
Kashmir (J&K) and Ladakh to meet present and future volumes of the entire J&K and
Ladakh region and also to cater to the requirements of the defence forces. The approved
cost of the project is Rs 676.89 crore. Land development and boundary wall jobs are in
progress.
• Common User Facility POL Terminal at Sadashibpur
(Meramundali), Odisha
The project envisages setting up a Common User Facility POL Terminal at
Sadashibpur (Meramundali), Odisha to meet the demands of central/north Odisha
economically, as PSU OMCs presently do not have any depot/terminal located centrally, and
large volumes are met through long-distance road movement from Paradeep coastal terminal.
The approved cost of the project is Rs 393.54 crore. Presently, land development and
boundary wall jobs are underway.
• Lube oil blending and filling plant at Rasayani
A state-of-the-art, Lube Oil blending and filling plant of
75 TMTPA capacity per shift is being developed at Rasayani. Base Oils
will be received from Mumbai Refinery and finished products will be supplied across the
country as per network mapping. The approved cost of the project is Rs 312 crore. The
project has achieved a physical progress of 17% with a cumulative expenditure of Rs 6.8
crore as on March 31, 2022.The project is scheduled to be completed by December 2023.
RESEARCH AND DEVELOPMENT (R&D)
Corporate Research & Development Centre (CRDC) of the Company plays
a vital role in business growth and sustainability. Today, in the emerging energy
scenario, Net Zero plans and the ‘Aatmanirbhar Bharat' initiative of Government
of India have added a strong impetus to develop cutting-edge products and processes. In
line with this, CRDC at Greater Noida in U.P. is actively pursuing research in the niche
areas of petrochemicals, biofuels, alternative energy, green hydrogen and mitigation of
Carbon Dioxide emission risks along with
(CO2)
conventional oil refining and related processes. The R&D wing of
Product & Application Development (P&AD) Centre situated at Sewree, Mumbai is
continuously involved with the development of novel automotive, industrial and green
lubricant formulations to meet evolving business needs. During the year 2021-22, CRDC
successfully showcased a number of innovative technologies and products like Bharat
Hi-Star LPG stove with about 75% efficiency, Superabsorbent Polymer (SAP) for hygiene
applications, niche petrochemical catalysts and HiGee Deaeration Technology. Digital tools
like K Model and BPMARRK were developed for crude oil compatibility prediction and
real-time crude assay for Crude Distillation Units, monitoring and optimization. This was
in addition to properties prediction of various streams through BPMARRK to increase the
utility of the tool and reduce lab-based analysis of the intermediate streams.
Bharat-H2Sep Membrane Technology for hydrogen recovery was also developed during the year.
In alignment with the Net Zero goals of the Company, CRDC has also taken initiatives to
develop sustainable solutions by signing Memorandum of Agreement (MoAs) with Bhabha Atomic
Research Centre (BARC) to scale up indigenous alkaline water electrolysis technology for
green hydrogen production and with CSIR-IICT, Hyderabad to develop a biogas production
process using lignocellulosic biomass capture and as feedstock. Likewise, R&D projects
on CO2 valorization, hydrogen capture from refinery off-gases and Sustainable Aviation
Fuel (SAF)/Bio-ATF production are also being pursued.
On the other hand, the R&D wing of P&AD Centre continued its
association with major automotive Original Equipment Manufacturers (OEMs) in the country
for developing high-performance engine oils of international standards. As a result, the
Centre has developed new product portfolios, including fuel-efficient Synthetic Engine Oil
for motorcycles and scooters, Diesel Engine Oil with extended drain interval for
off-highway applications, Synthetic Transmission Oil for Metro Rail Car, high-performance
long-life Hydraulic Oil for off-highway segment, and Premium Soluble Cutting Oil for
multi-metal machining operations for auto ancillaries sector. Based on R&D efforts,
initiatives were undertaken in the year 2021-22 to commercialize R&D outcomes.
Strengthening the Aatmanirbhar Bharat initiative of Government of India, commercilization
activity to scale up in-house developed Superabsorbent Polymer technology was initiated.
Bharat-H2Sep Membrane technology for hydrogen recovery has been successfully demonstrated
at Kochi Refinery. Likewise, MoA was firmed up with M/s Engineers India Limited (EIL) to
commercialize Indigenous Crude Oil Desalter and Divided Wall technologies. As a part of
digitalization initiatives, innovative digital solution tool, viz., K Model for
determining crude oil blending compatibility was launched in July 2021. This innovation
has enabled the Company to select opportunity and spot crudes and undertake their
processing in optimum ratios with term crudes. Furthermore, successful field trials for
in-house developed corrosion inhibitor formulation for crude oil pipeline were completed
at Kochi Refinery-Subsea pipeline. The R&D efforts were recognized at national level
and various prestigious awards were received during the year 2021-22, including Golden
Peacock Eco-Innovation Award 2021 conferred on BHARAT GSR CAT – a cost-effective
gasoline sulphur reduction additive for Fluidised Catalytic Cracking (FCC) operation in
refinery, Golden Peacock Innovative Product/Service Award 2021 awarded to K Model, and
Best Innovation in Refinery Digital Award 2021 from MoP&NG for BPMARRK. During the
year, a focused research approach by CRDC teams resulted in grant of 3 Indian patents.
Also, 5 new patent applications (4 Indian and 1 foreign) were filed during the year.
In addition to the R&D initiatives in the Company, the Business
Units have undertaken various innovative initiatives in their constant endeavour to
improve the processes, increase operational efficiencies and reduce energy consumption.
Some of these innovations are mentioned below: Mumbai Refinery successfully implemented
innovative ideas based on internal studies for reducing Fluid Catalytic Cracking Unit
stripping steam consumption, recovery of additional Vacuum Gas Oil from Vacuum Residue in
Crude Distillation Unit 4, changes in the operating methodology of splitters for increased
capacity utilisation of Reformer Feed Unit and modifications in Continuous Catalytic
Reformer unit by utilising margins available to produce higher quantity of MS, Benzene and
Toluene and reducing fuel consumption.
A 20 Kg/h continuous polymerization reactor was commissioned at Kochi
Refinery as a pilot to produce Superabsorbent Polymer (SAP) of quality matching with the
international benchmark based on technology developed by the CRDC. With this initiative,
manufacturing competency based on in-house developed SAP technology has been established
for the first time in India. Further, Kochi Refinery carried out an in-house process
innovation to coproduce Food Grade Hexane from Isomerization Unit. At the time of the
second Covid-19 wave, when entire country was grappling with shortage of oxygen, the Kochi
and Mumbai refineries carried out process innovations to improve the purity of gaseous
oxygen and supplied it as medical oxygen directly from the plant to patients at government
hospital in Kochi and to cylinder filling facility at Mumbai and Kochi.
The year 2021-22 saw the rollout of various applications and solutions
under the Company's flagship digitalisation initiative – "Project
Anubhav" aimed at reinforcing Trust, Convenience and Personalization for consumers
and enhancing efficiencies and transparency in operations. The Customer Relationship
Management (CRM) platform and Customer Engagement Platform (CEP), as well as customer
facing solutions, were implemented to provide exceptional experience to customers while
they interact with BPCL, and to also provide innovative cross-selling and up-selling
opportunities to the Company. IRIS - the Digital Nerve Centre enabled seamless
connectivity and visibility across the supply chain facilitating handling of exceptions
digitally.
Similarly, the Retail business unit implemented innovative pilot
project at Irugur installation, first of its kind, by automating the operation of fire
fighting facilities, introduced Digital Handing Over Taking Over (HOTO) by leveraging
terminal automation system to ensure safe operations for control room incharges and
established an "Experience Centre" at Devangonthi installation making use of
Virtual Reality (VR) and Augmented Reality (AR). A unique digitally enabled omni-channel
Consumer Rural Retailing Model was rolled out at Tier III/IV towns, i.e., sub-district
areas in five states, on a pilot basis to cater to wide assortments of fuel and non-fuel
needs of consumers along with essential services like financial and tele- medicines. As
part of this initiative, the Company has enrolled women entrepreneurs in rural areas
called "Urja Devis" and trained them to handle the business. Total expenditure
on research & development activities and innovation initiatives during the year
2021-22 was Rs 219.82 crore.
INDUSTRIAL RELATIONS
The Industrial Relations climate remained harmonious and peaceful
across the Company. The Long-Term Settlements on Wages & Other Matters have been
successfully signed with 7 out of 8 eligible Marketing Unions in the year 2020. While
discussions with the Refineries Unions are in progress, a settlement has been finalized
with one of the Mumbai Refinery Unions representing 21% of the active workmen in Mumbai
Refinery, in May 2022. There were no cases of any industrial unrest. The Company continued
the thrust towards productivity enhancement and employee well-being with a focus on
regular communication with all employees on all important issues affecting them and the
Company as a whole. The Management and Unions are committed to improving standards of work
and overall capability of our workmen, thereby supporting the overall organizational
objectives.
CORPORATE SOCIAL RESPONSIBILITY
Contribution towards the society and working for the welfare of the
underprivileged is ingrained in the corporate values of BPCL. In line with BPCL CSR Vision
– "Be a Model Corporate Entity with Social Responsibility committed to
Energizing Lives through Sustainable Development" – the Company is committed to
communities in the vicinity of its business and far beyond. BPCL has consistently
contributed towards achieving the sustainable development goals and made significant
progress in the core thrust areas of health & hygiene, education, skill development,
water conservation and community development.
The Company partners with several capable and credible organizations by supporting
projects that benefit the underprivileged and marginalized sections of the society. CSR
initiatives are undertaken based on social, environmental, and economic considerations.
While the Company continues to undertake new CSR initiatives, it has exited and
successfully handed over to either local government or communities, those projects that
have been completed successfully, for ensuring sustainability of these initiatives through
societal participation.
Since the focus was entirely on healthcare due to pandemic, the activities under the
thrust area of health and hygene took priority over other thrust areas like education,
skill development, water conservation etc. BPCL took some exemplary measures to combat the
pandemic and provide relief and rehabilitation to the most vulnerable sections of the
society.
Annual Report on CSR including the composition of CSR Committee is enclosed as Annexure
B. The details of the CSR policy, projects and programs are available on the website of
the Company at https://www.bharatpetroleum.com/social-responsibility/ csr-reporting.aspx
Out of the total CSR allocation of Rs 183.74 crore for the year 2021-22, Rs 137.78
crore were spent during the year.
The shortfall of Rs 45.96 crore from the stipulated prescribed spend is mainly on
account of delay in completing projects as per timelines, due to restrictions imposed on
account Covid-19 pandemic. In accordance with the applicable CSR Rules, this unspent
amount of Rs 45.96 crore (which includes unspent amount of Rs 39.40 crore for the
financial year 2021-22 and Rs 6.56 crore for the financial year 2020-21) has been
allocated against specified projects and have been transferred to the Unspent CSR Account
(UCSRA) for subsequent expenditure towards these projects.
The details of CSR activities under major heads are given below:
Covid Relief Measures
BPCL, under the leadership of MoP&NG and in collaboration with OMCs, provided
Covid-19 combat infrastructure in various parts of the country. A total of 11 PSA plants
for medical oxygen generation were set up at Government hospitals in Uttar Pradesh,
Maharashtra, Kerala and Madhya Pradesh. As many as 3,000 oxygen cylinders, 1,000 oxygen
concentrators and 100 ventilators
were procured and stored at various locations across the country so
that the same could be made available to communities in case of emergency. BPCL partnered
with local administration and police authorities at various locations to provide PPE
(personal protection equipment) kits, masks and sanitizers to various frontline workers as
well as helped marginalized sections of the society, including migrant workers, by way of
distributing ration kits. In view of the big relief provided to the citizens of the
country through the Prime Ministers Citizens Assistance and Relief in Emergency Situations
Fund (PM Cares Fund), BPCL once again whole-heartedly contributed Rs 40 crore to the fund
during the year. At Kochi Refinery, BPCL established jumbo facilities inside the refinery
school premises with an approximately 1-km-long 4-inch stainless steel pipeline from its
gaseous oxygen facility (VPSA). The school building and auditorium can together
accommodate about 350 patients. Also, the bedded facility can be extended up to 1,000 beds
in case of any requirement. An oxygen-filling facility was set up with a capacity of 7 m3
(250 cylinders/day).
At Mumbai, BPCL whole-heartedly supported the state government's
efforts to combat the oxygen crisis during the second wave of the pandemic. Mumbai
Refinery obtained FDA license for supplying 93% oxygen and offered oxygen compressors and
skids to Municipal Corporation of Greater Mumbai (MCGM) for developing oxygen-filling
facilities. A 4-inch stainless steel pipeline from VPSA Oxygen Plant to oxygen-filling
facilities with capacity of 10 MT of this life-saving gas per day was developed adjacent
to the refinery premises. At Bina Refinery, a 200-bed Covid-care hospital was developed
for patients. This medical facility can be extended up to 1,000 beds in case of emergency.
A new 4-inch stainless steel oxygen pipeline was also established for supply of oxygen to
the hospital.
Health & Hygiene
The Company reached out to the socio-economically marginalized strata
of the society through innovative, value-driven and well-designed projects that boosted
consciousness towards health. BPCL continued its unflinching support for cancer care by
supporting a holistic cancer program, which comprises cancer screening, surgical
interventions to cancer patients and subsequent rehabilitation of cancer survivors in 10
cancer hospitals across the country. The scope of the program consists of conducting
around 700 screening camps, undertake minimum of 415 surgeries and cater to more than 350
cancer survivors for rehabilitation. During the year 2021-22 around 200 screening were
conducted, 370 patients underwent treatment/surgeries and around 300 patients were
supported towards rehabilitation. Despite the intermittent Covid-19 lockdowns, a project
aimed towards construction of an affordable cancer care facility has been completed in the
aspirational district of Darrang (Assam) and is ready for operation. This hospital was
recently amongst the six cancer hospitals in Assam that were dedicated to the nation, on
April 28, 2022, by Hon'ble Prime Minister along with Hon'ble Chief Minister of
Government of Assam.
Another flagship project in operation, the Lifeline Express, or
‘Hospital on a Train', comprising seven coaches modified into a hospital,
travelled to remote district of Balrampur, Uttar Pradesh. Under this initiative, screening
camps were conducted as well as medical and surgical interventions were carried out,
enabling early identification of diseases and reduction in avoidable suffering for about
8,000 patients in the span of a month.
Education
There is no denying that education is one of the most fundamental
enablers for realizing India's demographic advantage. Lack of access to quality
education is a huge obstacle to development of an equitable society and a sustainable
economy. Schools were most deeply impacted during the unrelenting pandemic, as they were
closed throughout the year. BPCL utilized this period and undertook activities towards
renovation and construction of classrooms and allied facilities such as provision of
separate toilets for boys and girls, clean and safe drinking water, classroom furniture
etc. in various schools so that children could derive these benefits once the schools
became operational again.
Skill Development
BPCL has been consistently enhancing the employability and
entrepreneurship of youth in the hydrocarbon sector as well as in other sectors through
the Skill Development Institute (SDI) at Kochi, Kerala. Since inception, 978 students have
been trained. In collaboration with other oil & gas companies, BPCL also supported
five other SDIs in Ahmedabad, Vishakhapatnam, Guwahati, Raebareli and Bhubaneswar. While
academic activities at skill training institutes were affected due to the pandemic, the
Company continued to support skilling initiatives for youth in Aspirational Districts of
Madhya Pradesh. The online mode of training was adopted and 15 batches were trained in
vocational skills and were linked to employment and self-employment opportunities.
Water Conservation
Water is life. Also, it is at the core of sustainable development and
is critical for socio-economic uplifting as well as for energy and food production,
healthy ecosystems and human survival itself. Through its hugely impactful water
conservation initiatives, collectively named "Project BOOND", BPCL has, over
decades, aimed at improving access to water for various needs, including drinking,
agriculture and livelihood, with focus on recharging ground water reserves. The key
objective of this initiative is to transform villages from water-scarce to water-positive.
In this thrust area, BPCL is ensuring water security for rural communities through
renovation of rainwater harvesting structures, afforestation, supporting farming
livelihood and community awareness in four villages in Sangli (Maharashtra) and eight
villages in Karauli (Rajasthan).
Community Development
BPCL has been contributing wholeheartedly to the "Transformation
of Aspirational Districts Program", launched by NITI Aayog, which focusses mainly on
health & nutrition, education, agriculture & water resources, financial inclusion
& skill development, and basic infrastructure. The Company is working with rural
communities in order to improve the living standards of the communities in these
lowest-ranked districts as well as non-aspirational districts, thus ensuring inclusive
growth for them.
BPCL undertook a project to distribute free-seeds which are certified
by the Government and which consume less water to 1,000 farmers, wherein every farmer
received one 20-kg bag of wheat seed, two 8-kg bags of maize seed and one 3-kg bag of
millet seed. In total, 4,000 bags of seeds were distributed that would help the farmers
earn higher income. The farmers were also provided training and information about the
appropriate methodology and best practices for efficient farming.
Swachh Bharat Abhiyaan
The Company continued to participate enthusiastically in ‘Swachh
Bharat Abhiyan', a flagship movement fostered by Government of India. BPCL has been
working relentlessly towards making Bharat ‘Swachh' since the inception of this
profound initiative. The Company aims at and contributes towards creating an ‘Open
Defecation Free' country through construction and renovation of toilets in schools
and communities. BPCL undertook more than 89,000 activities during the Swachhata Pakhwada
fortnight celebrated from July 1-15 2021, reaching out to around 65 lakh people. The
activities included creating awareness on hygiene and sanitation, distribution of PPE kits
for frontline workers, etc. The activities were meticulously planned and undertaken
maintaining all precautionary measures of social distancing.
Swachh Iconic Places
BPCL contributes to the Swachh Bharat Mission in several meaningful
ways. One of them is to contribute to the Swachh Iconic Places initiative where the
Company continues to support the Meenakshi Temple at Madurai (Tamil Nadu) and Sri Adi
Shankarachary Janmabhoomi Tirth in Kalady, Kerala through beautification of the
surrounding areas, better sanitation facilities, access to safe drinking water and more.
Initiatives Outside Thrust Areas
Apart from thrust areas, BPCL also serves the nation in other important
areas. BPCL takes up initiatives in other areas of Schedule VII of Companies Act, 2013.
One such project is in collaboration with National Craft's Museum and Hastkala
Academy (New Delhi), wherein reorganisation, restoration and preservation of more than
33,000 ancient objects is being undertaken. Further, with a futuristic view, it is also
planned to digitally archive all the available collection of artefacts for easy access to
the people and artisans through appropriate displays in galleries.
PROMOTION OF SPORTS
The year 2021-22 was a landmark year in the annals of BPCL sports. At
Tokyo Olympics 2020, which was held in 2021 due to the pandemic, the resolute Indian
Men's Hockey Team rewrote history as it claimed an Olympic medal after 41 years. Five
of the Company's sportspersons, namely, Birendra Lakra, Lalit Updhyay, Harmanpreet
Singh, Varun Kumar and Vivek Sagar Prasad were part of the Indian Men's Hockey Team
that claimed the Bronze Medal in Tokyo Olympics 2020. They were also awarded the
prestigious Arjuna Award for their exemplary performance in the Olympics.
In Tokyo Paralympics 2020, which was also held in 2021, Arjuna Awardee
BPCL employee Manoj Sarkar bagged the Bronze Medal. He also won medals in Spanish Open
(Bronze in Singles, Gold in Doubles) and Uganda Open (Gold in Singles, Silver in Doubles).
BPCL Para-Badminton player Manasi Joshi achieved World No. 1 ranking in Women's singles in
the SL3 category. She also won medals in the Spanish Open (Gold in Singles, Silver in
Mixed-Doubles) and Uganda Open (Gold in Singles, Gold in Mixed-Doubles and Bronze in
Doubles) Para-Badminton tournaments.
BPCL's ace archers Deepika Kumari and Atanu Das represented the
Indian Archery team in Tokyo Olympics 2020. Deepika Kumari bagged the Gold Medal in the
Archery World Cup and secured the World Rank No. 1 spot. Atanu Das also won the Gold Medal
in the Archery World Cup. Jyothi Surekha, one of the promising archers from BPCL, secured
three Silver medals for the nation in the World Archery Championship, a Gold Medal in
Asian Archery Championship and a Gold Medal in the Lancaster Classic Archery Tournament in
2021. In Cricket, BPCL star players made waves. Suryakumar Yadav was part of the team that
represented India in the T-20 World Cup 2021. Shreyas Iyer made a scintillating debut in
Test Cricket with a century for the Indian cricket team in the first match of the Test
Series against New Zealand in November 2021.
Taking forward the Company's rich legacy of contributing to the
nation in the sphere of sports, Tushar Khandker, who is an ex-Hockey player and an
Olympian, has undertook a special assignment as Assistant Coach of the Indian Senior
Women's Hockey Team. He was the force behind guiding the team to secure Bronze Medal
in Asia Cup 2021.
RESERVATION AND OTHER WELFARE MEASURES FOR SCHEDULED CASTES / SCHEDULED
TRIBES / OTHER BACKWARD CLASSES AND PERSONS WITH DISABILITIES
BPCL has been following in letter and spirit the Presidential
Directives and other guidelines issued from time to time by Ministry of Petroleum &
Natural Gas (MoP&NG), Ministry of Social Justice and Empowerment and the Department of
Public Enterprises relating to reservations / concessions for Scheduled Castes, Scheduled
Tribes and other Backward Classes. Adequate monitoring mechanism has been put in place for
sustained and effective compliance uniformly across the Company. Rosters are maintained as
per the directives and regularly inspected by Liaison Officer of the Company as well as
Liaison Officer of MoP&NG to ensure proper compliance of the directives.
SC/ST and economically backward students are encouraged by awarding
scholarship to those pursuing education in secondary school and up to graduation level.
Human spirit knows no bounds, neither is it shackled by any physiological challenges. BPCL
zestfully amalgamates persons with special abilities in its workforce.The Company complies
with provisions under "The Rights of Persons with Disability Act, 2016" relating
to providing employment opportunities for Persons with Disabilities (PWDs). Details
relating to representation of SC/ST/OBC candidates and Persons with Disabilities are
appended as Annexure C.
IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY The official language,
Hindi, is the nation's pride. BPCL continues to comply diligently with the Annual
Programme 2021-22 issued by Department of Official Language, Ministry of Home Affairs,
Government of India, towards the implementation of the Official Language across the
organization. The progressive usage of Hindi was reviewed and evaluated quarterly,
half-yearly and on a yearly basis, through essential committees, viz., OLIC (Official
Language Implementation Committee), TOLIC (Town Official Language Implementation
Committee), etc. at different levels such as regions, offices, locations, and refineries.
Various initiatives, including Hindi Fortnight / Week, celebration of notable days,
milestones, projects, pledges of national importance, observance of World Hindi Day,
Annual Hindi Coordinator's Meet as well as various competitions, programs and
cultural activities, were organized from time to time, with whole-hearted participation
from employees. Other initiatives to promote the use of Hindi in day-to-day work include
awards instituted for locations, regions, and employees – both online and offline.
Hindi trainings and workshops on the Indic bilingual software, voice-typing, machine
translation, etc. were also organized for enhancing levels of compliance. Additionally, as
a part of promoting Hindi and encouraging employees' children for greater adoption
and use of Hindi, 178 children were awarded Official Language Prizes for outstanding
performance in 'Hindi' subject in 10th and 12th Classes.
BPCL has also well-deservedly received accolades and special
appreciation from TOLIC at various locations, including Panipat Installation, Roorkee LPG
Plant, Goa Retail Territory as well as Sewree, Kharghar and Priyadarshini Offices for
emphatic implementation of Hindi. During the year, Chairmanship of TOLIC, Goa was bestowed
on BPCL by Ministry of Home Affairs.
CITIZEN'S CHARTER, PUBLIC GRIEVANCE REDRESSAL (PG) & CUSTOMER
CARE SYSTEM AND RIGHT TO INFORMATION (RTI) A satisfied customer is the greatest asset
for the Company and ‘Customer-Centricity is one of the core values of the Company.
BPCL recognizes that ensuring customer delight is an integral part of all the business
operations and redressing customer grievances, if any, through a well-defined mechanism,
is the key to success.
The Company has constantly endeavoured to set new benchmarks in
customer service standards, to not only meet but exceed the customer expectations.
Citizen's Charter
The Citizen's Charter enshrines the trust between BPCL and its
customers and outlines the Company's commitment towards improving the quality of its
services. The Citizen's Charter published on the Company website provides details of
a range of services offered to our customers, with an overview of the marketing activities
of the Company, policy guidelines and processes on marketing of petroleum products. It
covers the mandate of the Company, customer rights with respect to standard, quality,
time-frame for service delivery, the grievance redressal mechanism, etc. These service
levels are revisited from time to time and updated in line with the changing business
needs.
Public Grievance Redressal (PG)
The Public Grievance Redressal framework in BPCL spans across business
units and is a well-established online mechanism for receipt, escalation and timely and
effective closure of all public complaints. Complaints are continuously monitored through
Centralized Public Grievance Redress and Monitoring System (CPGRAMS), which is an online
web-enabled system (https://www.pgportal.gov.in/), developed by National Informatics
Centre (NIC) and Department of Administrative Reforms and Public Grievances (DARPG).
Grievances received from people through the CPGRAMS system are
centrally scrutinized at the corporate evel and sent for redressal to various
Business Units / Entities through a well-established online network, with an escalation
matrix to ensure timely and qualitative closure. BPCL, with its dedicated team, redressed
and closed 4,781 grievances out of 4,944 (i.e., 96.70%) received in the year 2021-22, with
an average disposal time of only 13 days as against the norm of 30 days stipulated for
disposal of grievances.
Customer Care System (CCS)
BPCL's ‘SmartLine', the centralized Customer Care System
(CCS), is the first-of-its-kind initiative in the Indian energy sector. Since its launch
in 2013, SmartLine has made more than 80 lakh interactions with customers. CCS continues
to be the first point of contact for our ever-increasing customer base for all their
queries and grievances. The system has grown into a 111-strong executive team, while the
latest CRM technology remains its backbone. CCS has recently moved to a brand-new
technology platform that gives a 360-degree view of the customer.
With BPCL going full steam on its digital journey, the Company is
handholding the customers across all businesses and Indian geographies through this
digital transformation paradigm. As always, keeping ahead of the industry, new-age digital
avenues (like the Company's web-based Urja chatbot and WhatsApp) were added to
provide ease of contact to our valued customers. As life returns to normal in the
post-pandemic scenario, BPCL is striving to keep the customers safe and well taken care of
with increased use of technology and AI (artificial intelligence). Complaints received are
not only redressed but the data thus generated is used to improve customer service at the
grassroots level. Customer delight remains pivotal to all our endeavours.
Right to Information (RTI)
BPCL has been successfully supporting the RTI Act from the time of its
inception in the year 2005 and has implemented all the norms stipulated in the RTI Act,
2005. As required under the Act, all the relevant details and information along with suo
moto disclosure under section 4(1) (b) have been hosted on the Company's Corporate
Website www.bharatpetroleum.in for the public at large.
Along with physical RTI applications, the Company also receives online
RTI applications and addresses the same through the RTI online portal
www.rtionline.gov.in, which is a unified RTI portal of the Government of India. From the
year 2005 till March 31, 2022, the Company has successfully handled 48,096 RTI
applications, 6,793 First Appeals and 1,127 Second Appeals with Central Information
Commission (CIC), thereby maintaining its commitment to transparency and accountability in
business operations.
RTI queries were closed on the RTI online portal within the stipulated
time limit of 30 days. This ensured that no penalty was levied for any postal delays. The
Company's team of 49 Central Public Information Officers (CPIOs) and 12 First
Appellate Authorities (FAA) are spread across the country, covering major BUs like Retail,
LPG, Aviation, and Refineries as well as Entities like HR and International Trade, thereby
ensuring smooth handling of RTI queries. During the year 2021-22, BPCL received 3,317 RTI
Queries, 465 First Appeals and 66 Second Appeals (CIC Hearings) and all of them have been
processed in a timely manner.
PUBLIC PROCUREMENT: MICRO & SMALL ENTERPRISES
BPCL's Central Procurement Organization (Marketing) procured goods
worth Rs 12,835.90 crore (100 % e-tendering) during the year. This includes BPCL's
requirement of Ethanol for blending with Petrol and other purchases across various BUs and
entities. Additionally, tenders for disposal of scrap worth Rs 192.70 crore were also
finalized for marketing locations. BPCL also anchored and finalized Industry tenders for
Ethanol and Bio-diesel for the 10th consecutive year. The tender value for Ethanol was
_ 28,300 crore and for Bio-diesel it was Rs 55.53 crore.
As an initiative towards Digital India, digitally signed invoices were
encouraged from vendors and digitally signed purchase orders were sent to vendors through
electronic mode. BPCL procured goods worth Rs 1,078.33 crore through Government
e-Marketplace (GeM), which is 846% jump from Rs 113.9 crore procured in the previous year.
BPCL abides by the Public Procurement Policy for MSEs Order 2012 and
its amendment of November 2018. In the year, 28.8% of the value of the Company's
annual Goods and Service procurements were done through MSEs as against the target of 25%.
All high-value tenders of BPCL were launched through the online open tender route. General
Conditions of Contract (GCC) and General Purchase Conditions (GPC) of all tenders have
purchase preference clauses for MSEs. BPCL also offers Trades Receivable Discounting
Scheme (TReDS) to its MSME Vendors. During the year 2021-22, BPCL's total procurement
in terms of value of Goods and Services, excluding works contracts, where MSEs could have
participated was Rs 13,878.28 crore. The actual procurement value from MSEs was Rs
4,006.52 crore, i.e., an achievement of 28.8%, which exceeds the target of 25%. BPCL
conducted three online Vendor Development Programs for MSE vendors, including two for MSE
SC/ST and one for MSE Women, wherein over 500 vendors participated. BPCL also participated
in MSME Expo 2022 at Nagpur, organised by Director, MSME, Maharashtra. An online
"Premier Vendor Workshop" was held in March 2022, wherein Asst. Director,
MSME-DI, Mumbai and Director - Buyer Management (CPSEs & Central Ministries),
Government e-Marketplace (GeM) made detailed presentations on the benefits of Public
Procurement Policy for MSEs and enhancements made in GeM portal, which aims at increasing
the efficiency in public procurement.
VIGILANCE
Vigilance administration in BPCL is an integral part of the management
for ensuring good governance in the organization. The motto of the department is
"Vigilance for Corporate Excellence". Vigilance department promotes Corporate
Governance by ensuring transparency, ethics and integrity in thoughts and deeds to make
BPCL an organization known for zero tolerance for corruption. Vigilance Department is
headed by Chief Vigilance Officer (CVO), and supported by a Vigilance team located in
headquarters, regions and refineries. The CVO acts as an advisor to the CMD in all matters
pertaining to vigilance. The CVO is also the nodal officer of the Company for interaction
with Central Vigilance Commission (CVC) and Central Bureau of Investigation (CBI).
Vigilance Mechanism is based on the Vigilance Manual/policy circulars
of CVC, instructions issued by Department of Personnel and Training (DoPT) and Ministry of
Petroleum & Natural Gas (MoP&NG). Annual and quarterly performance reports are
furnished to CVC and MoP&NG of the work done on vigilance matters. While
‘Punitive Vigilance' for commission of misconduct, malpractices and corrupt
practices is certainly an important function, ‘Preventive Vigilance' and
'Proactive Vigilance' are equally important, as these are likely to reduce the
occurrence of vigilance cases. Preventive vigilance enables BPCL to constantly review
procedures, guidelines and practices, identify vulnerable areas and recalibrate business
processes. Vigilance department constantly endeavours to promote improvement in systems,
processes and practices by adopting an approach of proactive, preventive and participative
vigilance. Vigilance carried out investigations into various complaints and source
information. Complaints, including those received online, from CVC and MoP&NG were
investigated directly by Vigilance team, wherever required. The complaints broadly covered
issues related to operational activities, dealership / distributorship selection and
management and project and procurement work, etc. A summary of investigative complaints
(detailed inquiries) handled by Vigilance during the year 2021-22 are given as follows:
| Opening balance (as on 01.04.2021) |
Investigation during the Year |
Total |
Disposed of during the Year |
Closing Balance (as on 31.03.2022) |
| 31 |
60 |
91 |
43 |
48 |
Surprise inspections were conducted at 74 locations, 127 retail outlets
and 58 LPG distributors during the year. Based on observations and findings, specific
recommendations for corrective action and system improvements were communicated to the
concerned departments. Over and above this, sensitive posts of the organisation are
identified and periodic rotation of the staff is ensured.
The Workshop on Preventive Vigilance at upcountry locations and
regional offices are conducted on regular basis by Vigilance department. The mid-career
training to employees on Vigilance was also started during the year. Vigilance Awareness
sessions were conducted for the employees working at operating locations and commercial
offices by Team Vigilance, using both online methodology and offline during their visits
to locations. These sessions were aimed at enhancing the knowledge and awareness on the
operational aspects of various circulars / guidelines / SOPs issued by BPCL, CVC and
MoP&NG. In all, 72 training sessions were held covering 2,375 persons during 2021-22.
Vigilance Awareness Week (VAW) was observed with the theme
"Independent India @ 75: Self-Reliance with Integrity" from October 26 to
November 1, 2021. During the week, a variety of programmes were carried out like Integrity
Pledge, display of PIDPI posters at all offices, competitions in schools, competitions
among employees, organizing Gram Sabhas and Vendor Meets, as per directives issued by CVC.
Internal activities were taken up in campaign mode as a part of Vigilance Awareness Week.
The 12th edition of the Vigilance Magazine, "Vigilance Plus" containing articles
related to vigilance and activities undertaken during VAW was released.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
BPCL has 4 subsidiaries and 22 Joint Venture Companies and Associate
Companies as on March 31, 2022.
Details of Company that Nil has become a Subsidiary during the year
2021-22 Details of Company that has Nil become a Joint Venture / Associate during the year
2021-22 Details of Company that has Nil ceased to be a Subsidiary during the year 2021-22
Details of Company that has ceased Nil to be a Joint Venture / Associate during the year
2021-22
However, pursuant to the Order of the Ministry of Corporate Affairs
dated June 22, 2022 and its subsequent filing with the respective Registrar of Companies,
the wholly owned subsidiary of BPCL, Bharat Oman Refineries Limited (BORL), stands merged
with BPCL with effect from July 1, 2022.
A separate statement containing the salient features of the financial
statements of Subsidiaries / Associates / Joint Venture Companies in Form AOC-1 pursuant
to provisions of Section 129 (3) of the Act, is attached along with the financial
statement.
The Company has placed its financial statements, including Consolidated
Financial Statements and all other documents required to be attached thereto, on its
website www.bharatpetroleum.in as per Section 136(1) of the Act. Further, the Company has
also placed separate Annual Reports / audited accounts in respect of each of its
subsidiaries on its above website. A copy of the said documents are available for
inspection and will be provided to any shareholder of the Company who asks for it. The
policy for determining material Subsidiaries is posted on the Company's website at
the link http://www.bharat petroleum.co.in/General/PolicyonMaterialSubsidiaries.aspx ?id=4
BPCL SUBSIDIARY COMPANIES
BHARAT PETRORESOURCES LIMITED (BPRL)
BPRL was incorporated in October 2006, as a 100% subsidiary of Bharat
Petroleum Corporation Limited, to undertake upstream activities of BPCL. As on March 31,
2022, BPCL's investment is
_ 7,275 crore in the equity capital of BPRL. In addition to this, the
Company has given a loan of Rs 2,190 crore to this subsidiary. BPRL has recorded a
consolidated income of Rs 232.04 crore and a consolidated loss of Rs 447.86 crore for the
financial year ending March 31, 2022. BPRL has Participating Interest (PI) in eighteen
blocks, of which nine are in India and nine overseas, along with equity stake in two
Russian entities holding the license to four producing blocks in Russia. Five of the nine
blocks in India were acquired under different rounds of New Exploration Licensing Policy
(NELP), one block was awarded under Discovered Small Fields Bid Round 1 and three blocks
were awarded under the Open Acreage Licensing Policy (OALP) Bid Round I. Out of nine
overseas blocks, five are in Brazil, two in United Arab Emirates and one each in
Mozambique and Indonesia.
The blocks of BPRL are in various stages of exploration, appraisal,
development and production. The total acreage held by BPRL and its subsidiaries is around
22,000 sq. km, of which approximately 49% is offshore.
During the year 2021-22, approximately 4.3 million barrels of crude oil
from the Lower Zakum Concession was lifted by BPCL Group refineries, out of BPRL's
share of equity crude oil from the Lower Zakum Concession. The Appraisal Well campaign of
the existing Ruwais discovery in the overseas operatorship block Onshore Block 1
Concession in Abu Dhabi, UAE was carried out during the year 2021-22 and the testing of
the appraisal wells has established the presence of hydrocarbons. The first exploration
well in the unexplored areas was also spud on March 3, 2022. In BM-SEAL-11 Concession in
Brazil, the Declaration of Commerciality (DoC) has been submitted to ANP (Brazilian
Regulator) in December 2021 and the concessionaires are progressing on finalizing the
Field Development Plan (FDP). In Offshore Area 1, Rovuma Basin Mozambique, while the
construction activities in the 2-Train Golfinho-Atum LNG Project were progressing as per
schedule, security incidents in the region led to declaration of force majeure at the
beginning of the year 2021-22. The Government of Mozambique is working towards the
re-establishment of peace and resolving the security situation. Mozambican military along
with Joint forces from Rwanda and Southern African Development Community (SADC) continue
their operations in the region. Area 1 Concessionaires remain committed to promptly
restarting once the security situation is resolved in a sustainable manner.
In respect of Indian blocks, the block CY-ONN-2002/2, located in
Cauvery Basin, Tamil Nadu currently has six producing wells. During the year 2021-22,
BPRL's share of production from the block was 30 thousand tonnes of oil and 12
million cubic meters of associated gas. Gas sales from the block to GAIL commenced in May
2021.
In BPRL's Indian OALP Operated block, CB-ONHP-2017/9, located in
onshore Cambay Basin, Gujarat, exploration drilling prospects have been identified and
activities are planned towards the minimum work program.
The PI in respect of blocks in India are held directly by BPRL. PI in
respect of blocks in Brazil, Mozambique, Indonesia and UAE and equity stake in two Russian
entities are held through various step-down wholly owned subsidiaries/JVs of the wholly
owned subsidiaries located in the Netherlands and Singapore.
A detailed discussion on the Blocks is given in the Management
Discussion & Analysis Report (MDA).
BHARAT OMAN REFINERIES LIMITED (BORL)
BORL was incorporated in 1994 as a Joint Venture between BPCL and OQ
S.A.O.C. (formerly known as Oman Oil Company S.A.O.C.). During the year under review, BPCL
acquired 36.62% of shares from OQ S.A.O.C, making BORL a wholly owned subsidiary of BPCL.
BPCL has also acquired 2.69 crore warrants of BORL held by Government of Madhya Pradesh
(GoMP) during the year. As on March 31, 2022, BORL had an authorized share capital of Rs
7,000 crore and paid-up equity share capital of
_ 2,426.83 crore. Besides, BPCL had given a loan of
_ 1,254.10 crore and subscribed to warrants bearing face value of Rs
962.58 crore (including warrants acquired from GoMP) and subscribed to Compulsorily
Convertible Debentures of Rs 1,000 crore.
Crude processed during the year 2021-22 was 7,410 TMT, with average
capacity utilization of 95%. The company has reported Revenue from Operations of Rs 55,561
crore in the financial year ended as on March 31, 2022, as compared to Rs 35,420 crore
recorded in the previous financial year. The net profit for the year 2021-22 stood at Rs
892 crore, as compared to a loss of Rs 76 crore in the previous year. The Basic EPS for
the year stood at Rs 2.60, as against Rs (0.22) in the year 2020-21.
In October 2021, Board of Directors of BORL and BPCL approved the
scheme of amalgamation of BORL with BPCL and filed an application with the Ministry of
Corporate Affairs. The process of amalgamation has been completed in June 2022 and BORL
has merged with BPCL with effect from July 1, 2022. Subsequently, the Comptroller &
Auditor General of India (C&AG) has, vide its letter dated July 21, 2022, intimated
that based on the supplementary audit of the Financial Statements of BORL for financial
year 2021-22 under Section 143(6)(a) of the Companies Act 2013, nothing significant has
come to its knowledge which would give rise to any comment upon or supplement to
BORL's statutory auditors' report under Section 143(6)(b) of the Companies Act
2013.
BHARAT GAS RESOURCES LIMITED (BGRL)
BGRL, a wholly owned subsidiary of BPCL, was incorporated in June 2018
for handling Natural Gas business. BGRL has been authorised for setting up of CGD
Infrastructure in thirteen (13) Geographical Areas (GAs) under Round 9 and 10 of CGD
bidding rounds. During the year 2021-22, the project implementation activity continued at
good pace in the authorised GAs, with BGRL incurring the capital expenditure of Rs 1,189
crore during the year. The cumulative capital expenditure on the CGD projects being
carried out by BGRL stands at Rs 1,802 crore as on March 31, 2022.
During the year 2021-22, 133 new Compressed Natural Gas (CNG) stations
at retail outlets were mechanically completed. CNG sale started at 60 CNG stations and 2
City Gas Stations were commissioned during the year. In March 2021, the Board of Directors
of BPCL and BGRL had approved the Scheme of Amalgamation of BGRL with BPCL with the view
of streamlining of the corporate structure and consolidation of assets and liabilities.
The process of amalgamation is in advance stage.
BPCL-KIAL FUEL FARM PRIVATE LIMITED (BKFFPL)
BKFFPL was incorporated in May 2015 with an equity participation of 74%
by BPCL & 26% by Kannur International Airport Limited. The company was formed to
design, construct, commission and operate the Fuel Farm at Kannur International Airport
for the supply of ATF on an exclusive basis. The Fuel Farm started operating from December
2018 along with the commissioning of the Kannur International Airport. As on March 31,
2022, the authorized capital of the company is Rs 50 crore and paid-up capital is Rs 9
crore. During the year 2021-22, the fuel throughput was 28,389.83 KL. The company earned a
revenue of Rs 5.24 crore in the year 2021-22 and the loss during the period was Rs 3.85
crore.
BKFFPL is being managed under a joint control mechanism. Hence, in the
consolidated financial statements of the group for the period ending March 31, 2022, the
financials have been consolidated as Joint Venture as per the principles of Indian
Accounting standard.
BPCL JOINT VENTURE COMPANIES AND ASSOCIATES PETRONET LNG LIMITED (PLL)
PLL was formed in April 1998 for importing Liquefied Natural gas (LNG)
and setting up a LNG terminal with facilities like jetty, storage, regasification, etc. to
supply natural gas to various industries in the country. The company has an authorized
capital of Rs 3,000 crore and paid-up capital of Rs 1,500 crore. PLL was promoted by four
public sector companies, viz., BPCL, Indian Oil Company Limited (IOCL), Oil and Natural
Gas Company Limited (ONGC) and GAIL (India) Limited (GAIL). Each of the promoters hold
12.5% of the equity capital of PLL. BPCL's equity investment in PLL currently stands
at Rs 98.75 crore.
PLL recorded Revenue from operations of Rs 43,168.57 crore during the
year 2021-22, as against Rs 26,022.90 crore recorded in the year 2020-21. The net profit
for the year stood at Rs 3,438.11 crore, as compared to Rs 2,939.23 during the year
2020-21. The EPS for the year 2021-22 is
_ 22.92, as compared to Rs 19.59 of the year 2020-21. During the year
2021-22, PLL has recommended a final dividend of Rs 4.50 per share, in addition to a
special dividend of Rs 7.00 per share during the year. In the previous year, PLL had
declared a special dividend of Rs 8.00 per share and a final dividend of Rs 3.50 per
share.
INDRAPRASTHA GAS LIMITED (IGL)
IGL is a joint venture Company promoted by BPCL and GAIL and set up in
December 1998. IGL is a City Gas Distribution (CGD) company supplying natural gas to
transport, domestic, commercial and industrial consumers. The operations of IGL are spread
over NCT of Delhi, Noida & Greater Noida, Ghaziabad & Hapur, Gurugram, Meerut
(except area already authorized), Shamli, Muzaffarnagar, Karnal, Rewari, Kanpur (except
areas already authorized), Hamirpur-Fatehpur districts, Kaithal district, and Ajmer.
Recently, IGL has received grant of authorization from PNGRB for development of CGD
network in the Geographical Area of Banda, Chitrakoot and Mahoba districts. IGL also holds
50% of equity in M/s. Central UP Gas Limited, Kanpur and M/s. Maharashtra Natural Gas
Limited, Pune, which are the Joint Venture Companies promoted by BPCL and GAIL. The
paid-up share capital of IGL is Rs 140 crore. BPCL had invested Rs 31.50 crore for 22.5 %
stake in its equity. The company added 99 new Compressed Natural Gas (CNG) stations and
3.75 lakh new Piped Natural Gas (PNG) domestic connections during the year. As on March
31, 2022, IGL has 711 CNG stations and 20.6 lakh PNG domestic connections. IGL has
registered Revenue from Operations of
_ 8,484.73 crore and Profit after Tax of Rs 1,502.27 crore for the year
ending March 31, 2022 as compared to Revenue from Operations of Rs 5,438.68 crore and
Profit after Tax of
_ 1,172.55 crore in the previous year. The EPS for the year stood at Rs
21.46, as against Rs 16.75 in the year 2020-21. IGL Board has recommended a dividend of Rs
5.50 per share (face value of Rs 2 each) for the year ending March 31, 2022 as against a
dividend of Rs 3.60 per share (face value of Rs 2 each) in the previous year.
SABARMATI GAS LIMITED (SGL)
SGL, a Joint Venture company promoted by BPCL and Gujarat State
Petroleum Company (GSPC), was incorporated in June 2006 with an authorized capital of
_ 100 crore for implementing City Gas Distribution projects for supply
of CNG to the household, automobile, industrial and commercial sectors in Gandhinagar,
Mehsana, Aravali, Sabarkantha and Patan districts of Gujarat. The paid-up share capital of
the company is Rs 20 crore. As on March 31, 2022 BPCL has a stake of 49.94% in the equity
capital of SGL. SGL has set up 158 CNG stations and is supplying PNG (Domestic) to 2.47
lakh customers. During the year 2021-22, the company has commissioned 23 CNG stations. SGL
has achieved a turnover of _ 1,900.46 crore and a net profit of Rs 346.55 crore for the
year ending March 31, 2022 as against Rs 1,114.75 crore and Rs 225.01 crore, respectively
for the previous year. The EPS for the year stood at Rs 173.27 as against Rs 112.50 in the
year 2020-21. The company has recommended a dividend of Rs 40 per share for the year
ending March 31, 2022, as against Rs 20 per share in the previous year.
CENTRAL UP GAS LIMITED (CUGL)
CUGL is a Joint Venture Company set up in February 2005 with GAIL as
the other partner for implementing projects for supply of CNG to the automobile sector and
PNG to the household, industrial and commercial sectors in Kanpur (including parts of
Unnao district), Bareilly and Jhansi in Uttar Pradesh. The company was incorporated with
an authorized share capital of Rs 60 crore. The Joint Venture partners have each invested
Rs 15 crore for an equity stake of 25% each in the company, while the balance 50% is held
by IGL. As on March 31, 2022, CUGL has 74 CNG stations. CUGL has achieved Revenue from
Operations of Rs 509.57 crore and net profit of Rs 118.83 crore for the year ending March
31, 2022, as against Rs 294.79 crore and Rs 78.62 crore, respectively, for the previous
year. The EPS for the year stood at Rs 19.80, as against Rs 13.10 in the year 2020-21. The
company has recommended a final dividend of Rs 3.00 per share in addition to the Interim
Dividend of Rs 1.00 per share during the year. Dividend of Rs 1.80 per share was
distributed for the previous year.
MAHARASHTRA NATURAL GAS LIMITED (MNGL)
MNGL was set up in January 2006 as a Joint Venture Company with GAIL
for implementing the project for supply of natural gas to the household, industrial,
commercial and automobile sectors in Pune and its nearby areas. The company was
incorporated with an authorised share capital of Rs 100 crore. The paid-up capital of the
company is Rs 100 crore. BPCL and GAIL have invested Rs 22.50 crore each in MNGL's
equity capital. Maharashtra Industrial Development Corporation (MIDC), as a nominee of
Maharashtra Government, holds 5% equity and the balance 50% is held by IGL.
MNGL, while strengthening its roots in the existing authorized GA
covering Pune and adjoining areas, is also growing in the Nasik GA and Sindhudurg GA in
Maharashtra and Ramanagara GA in the state of Karnataka, which were awarded by PNGRB under
the 9th CGD Bidding Round. The company crossed achievement of consistent sales of 1
million metric standard cubic meters (MMSCM) per day during the year. MNGL also
participated in the 11th CGD Bidding Round and successfully secured two new GAs, i.e.,
Buldana, Nanded and Parbhani districts in Maharashtra and Nizamabad, Adilabad, Nirmal,
Mancherial Kumuram Bheem Asifabad and Kamareddy districts in Telangana. MNGL has set up
167 CNG stations and is supplying PNG (Domestic) to 5.39 lakh customers. MNGL has achieved
Revenue from Operations of Rs 1,381.41 crore and profit of
_ 332.62 crore for the year ending March 31, 2022 as against Revenue of
Rs 800.26 crore and profit of Rs 172.98 crore, respectively, in the previous year. The EPS
for the year 2021-22 stood at Rs 33.26, as against Rs 17.30 in the year 2020-21. The MNGL
Board has recommended a dividend of Rs 10 per share, as against Rs 6 per share in the
previous year.
HARIDWAR NATURAL GAS PRIVATE LIMITED (HNGPL)
HNGPL was incorporated in April 2016 as a Joint Venture Company with
Gail Gas Limited on a 50:50 basis for implementation of a CGD network in the GA of
Haridwar District of Uttarakhand. The authorized capital of the company is Rs 45 crore. As
on March 31, 2022 the promoters have infused Rs 22.20 crore each towards equity. The
promoters have also given an inter-corporate loan of Rs 15 crore each to the company. The
five-year Minimum Work Program (MWP) target as per PNGRB authorisation of 16,905 domestic
PNG connections and 830-inch-km pipeline was achieved by the company in 2020-21. As on
March 31, 2022 the company has provided 24,667 domestic connections and laid around
1,335.27 Inch-km pipeline. Further, the company has set up 4 CNG stations. HNGPL achieved
a Revenue from Operations of Rs 45.76 Crore and a profit of Rs 3.34 Crore for the year
ending March 31, 2022 as against a revenue of Rs 16.74 crore and profit of Rs 0.67 crore
in the previous year.
GOA NATURAL GAS PRIVATE LIMITED (GNGPL)
GNGPL was incorporated in January 2017 as a Joint Venture Company with
GAIL Gas Limited on a 50:50 basis for implementation of a City Gas Distribution Project in
the GA of North Goa. The authorized share capital of the company is Rs 60 crore as on
March 31, 2022 and the promoters have infused Rs 30 crore each towards equity. During the
year 2021-22, the company has achieved its five-year MWP target of providing 9,588
domestic connection and laying 650-inch-km pipeline. As on March 31, 2022 the company has
provided 9,864 domestic connection and laid around 678-inch-km pipeline in the North Goa
GA. Further, the company has commissioned 6 CNG Stations in North Goa and is supplying gas
to 11 Commercial and 15 Industrial PNG Customers. GNGPL achieved a Revenue from Operations
of Rs 36.17 crore and a profit of Rs 0.20 crore for the year ending March 31, 2022 as
against a revenue of Rs 4.30 crore and a loss of Rs 0.88 crore in the previous year.
BHARAT STARS SERVICES PRIVATE LIMITED (BSSPL) BSSPL, a Joint
Venture Company promoted by BPCL and ST Airport Pte Ltd, Singapore was incorporated in
September 2007. BSSPL is a service provider and is associated with the aviation industry.
The authorized and paid-up share capital of BSSPL is Rs 20 crore. The two promoters have
each subscribed to 50% of the equity share capital of BSSPL and BPCL's present
investment stands at
_ 10 crore. BSSPL also has a wholly owned subsidiary named Bharat Stars
Services (Delhi) Private Limited, which is providing Into-Plane (ITP) services at Delhi
T-3 International Airport. The company commenced its ITP operations at Bangalore in 2008.
BSSPL has now increased its footprints at different airports across India, which includes
major airports like Delhi, Mumbai, Bangalore and Chennai. BSSPL also provides Business
Support Services (man-power services for fueling operation) in the petroleum sector.
Presently, the company is operating at 40 locations in India. Being associated with the
aviation industry, the sales and revenue of the company have been hit owing to the Covid
-19 pandemic. BSSPL has achieved a consolidated Revenue from Operations of Rs 37.59 crore
and a consolidated loss of Rs 5.12 crore for the financial year ending March 31, 2022, as
against a consolidated Revenue from Operations of Rs 29.95 crore and a consolidated loss
of Rs 2.32 crore, respectively, for the previous year.
DELHI AVIATION FUEL FACILITY PRIVATE LIMITED (DAFFPL) A Joint
Venture Company, DAFFPL has been promoted by BPCL, IOCL and Delhi International Airport
Limited (DIAL) for implementing open-access Aviation Fuel facility for the new T3, T2 and
Cargo terminals at Delhi International Airport. The company is also setting up an Aviation
Hydrant System at the T1 terminal of Delhi International Airport. The authorized and
paid-up share capital of the company is
_ 170 crore and Rs 164 crore, respectively. BPCL and IOCL each have
subscribed to 37% of the share capital of the joint venture, while the balance 26% is held
by DIAL. DAFFPL has achieved Revenue from Operations of Rs 72.19 crore and net loss of Rs
5.33 crore for the year ending on 31st March 2022, as against revenue of Rs 57.36 crore
and net loss of Rs 12.43 crore, respectively during the previous year. The EPS for the
year stood at Rs (0.33), as agains
_ (0.76) in the year 2020-21. The company has not recommended any
dividend for the year ending on March 31, 2022.
MUMBAI AVIATION FUEL FARM FACILITY PRIVATE LIMITED (MAFFFL) MAFFFL
was incorporated in February 2010 by Mumbai International Airport Limited (MIAL). BPCL,
IOCL and HPCL became joint venture partners with MIAL in October 2014 with each having an
equity holding of 25%. Presently, BPCL has invested an amount of Rs 52.92 crore towards
equity. MAFFFL started its operations from February 2015. The business of the company is
to own, operate and maintain aviation fuel farm facilities and to provide into-plane
services at Chhatrapati Shivaji Maharaj International Airport (CSMIA), Mumbai. MAFFFL
constructed a new integrated fuel farm facility, which was fully commissioned during the
year 2021-22. The facility is now being operated on an open-access basis. The revenue to
MAFFFL is by way of Fuel Infrastructure Charges, payable by the suppliers for utilizing
the facility. MAFFFL achieved a throughput of 7.47 lakh KL during 2021-22, which is an
increase of 23% from 6.06 lakh KL during the previous year. However, the same is only
50.37% of the throughput achieved in the year 2019-20. Volumes were hit due to the second
and third waves of Covid-19 pandemic in the first and fourth quarter of the year 2021-22.
Further, the geo-political crisis in Europe in the fourth quarter of the year negatively
impacted recovery of volumes owing to halt of direct flights to North America due to
restrictions in the use of airspace. MAFFFL has achieved Revenue from Operations of Rs
59.90 crore and profit of Rs 9.58 crore for the year ending on March 31, 2022 as against
revenue of Rs 46.49 crore and profit of Rs 1.56 crore, respectively, during the previous
year. EPS for the year 2021-22 stood at Rs 0.45, as against
_ 0.08 in the year 2020-21.
KANNUR INTERNATIONAL AIRPORT LIMITED (KIAL)
KIAL is an unlisted Public Company promoted by the Government of Kerala
to build and operate the airport at Kannur on international standards, primarily to cater
to the travelling needs of the large NRI population in the region, which travels
frequently to various international destinations, and the flourishing business community
and tourists. The authorised capital of the company is Rs 3,500 crore and the paid-up
capital of the company as on March 31, 2022 is Rs 1,338.36 crore, out of which BPCL has
contributed Rs 216.80 crore. Kannur Airport was commissioned in December 2018 and it is
one of the four international airports in Kerala. During the year 2021-22, total aircraft
movements were 9,761 and passenger traffic was approximately 8.03 lakh, as against 6,135
aircraft movements and approximate passenger traffic of 4.73 lakh in the previous year.
There is an increase in air traffic movement compared to the previous year and there is a
recovery of more than 50% compared to pre-Covid-19 scenario.
MATRIX BHARAT PTE LIMITED (MXB)
MXB is a Joint Venture company incorporated in Singapore in May 2008
for carrying out bunkering business and supply of marine lubricants in the Singapore
market as well as international bunkering, including expanding into Asian and Middle East
markets. The company has been promoted by BPCL and Matrix Marine Fuels L.P. USA, an
affiliate of the Mabanaft group of companies, Hamburg, Germany, contributing equally to
the share capital of USD 4 million. Matrix Marine Fuels L.P. USA has subsequently
transferred their share and interest in the joint venture in favour of Matrix Marine Fuels
Pte Limited, Singapore, another affiliate of the Mabanaft group, which has been further
transferred in favour of Bomin International Holding GmbH, Germany, yet another affiliate
of the Mabanaft group. In March 2021, MXB has carried out capital reduction and the
revised share capital of MXB stands at USD 0.50 million, with BPCL's share being USD
0.25 million. The company is not carrying out trading activities. The company has a branch
office in India, whose principal activities were to provide support services to the
Company. The company has ceased its operations in India since July 2020 and is in the
process of closing the branch office. MXB reported a loss of USD 0.03 million for the year
ending December 31, 2021 as against a profit of USD 0.07 million for the year ending
December 31, 2020.
KOCHI SALEM PIPELINE PRIVATE LIMITED (KSPPL)
BPCL signed a Joint Venture Agreement with IOCL for implementation of
the Kochi-Coimbatore-Salem LPG Pipeline Project and formed a Joint Venture Company, KSPPL
in January 2015, on a 50:50 basis. As on March 31, 2022 BPCL has paid an amount of Rs 470
crore towards equity in the company. The project is being executed in four phases. The
first phase is a 12-km 12-inch pipeline from Kochi Refinery (KR) to IOCL Udayamperoor
Bottling Plant and a 155-km 12" pipeline from KR to Palakkad Receipt Terminal (RT).
The 12-km pipeline from KR Dispatch Terminal (DT) to the Udayamperoor RT was commissioned
in August 2017 and during the year 2021-22, 132.51 TMT of LPG was transported through this
pipeline. With respect to the 155-km pipeline from BPCL-KR DT to Palakkad RT, the pipeline
lowering is in an advanced stage and the overall physical progress achieved as on March
31, 2022 is 95.91%. The second phase is a 39-km 12-inch pipeline from Puthuvypeen IOCL
import terminal to KR. The overall physical progress achieved for this section is 60.01%.
The third and fourth phases are a 63-km 12-inch pipeline from Palakkad RT to Coimbatore RT
and a 157-km 8-inch pipeline from Coimbatore RT to Salem RT. For these two phases, the
Tamil Nadu Government order on RoU acquisition compensation was released on February 14,
2020. Preliminary project activities and feasibility study have commenced for the third
and fourth phase.
GSPL INDIA TRANSCO LTD (GITL)
GITL is a Joint Venture of Gujarat State Petronet Ltd. (GSPL), IOCL,
BPCL and HPCL. GSPL has 52% equity participation in the company and balance equity is held
by IOCL (26%), HPCL (11%) and BPCL (11%).
GITL has been authorised to lay 1,881-km-long pipeline from Mallavaram
to Bhilwara. The initial section of Project from Reliance Gas Transmission India
Limited's interconnection point at Kunchanapalli to Ramagundam Fertilizers &
Chemicals Limited's plant at Ramagundam is in operation since 2019-20. During the
year 2021-22, the company transported approximately 444 MMSCM of gas as against 88.18
MMSCM in the previous year. The balance section of the pipeline is not expected to come up
due to poor feasibility, hence the company has recognized impairment of Rs 128.03 crore
towards capital expenditure incurred for the balance section. GITL has reported Revenue
from Operations of Rs 84.90 crore and a loss of
_ 155.56 crore for the year ending March 31, 2022 as against Revenue
from Operations of Rs 39.41 crore and loss of Rs 65.09 crore in the previous year.
GSPL INDIA GASNET LIMITED (GIGL)
GIGL is a Joint Venture of Gujarat State Petronet Ltd. (GSPL), IOCL,
BPCL and HPCL. GSPL has 52% equity participation in the company and the balance equity is
held by IOCL (26%), HPCL (11%) and BPCL (11%).
GIGL has been authorised to lay two cross-country gas pipelines, viz.,
Mehsana to Bathinda Pipeline (MBPL) and
Bathinda to Gurdaspur (BGPL). The initial sections of the project
covering approximately 442 km, viz., Barmer-Pali Pipeline, Palanpur-Pali Pipeline and
Jalandhar-Amritsar Pipeline are in operation since 2018-19. The company has successfully
commissioned all sections of MBPL Phase II Project, except section V and Gas-in activities
have been completed for certain sections. During the year 2021-22, the company has
transported about 1,328.56 MMSCM gas, as against approximately 995.50 MMSCM in the
previous year. GIGL has reported Revenue from Operations of Rs 228.47 crore and a profit
of Rs 73.36 crore for the year ending March 31, 2022 as against Revenue from operations of
Rs 172.68 crore and a loss of Rs 16.21 crore in the previous year.
FINO PAYTECH LIMITED (FINO)
BPCL acquired shares in FINO in the year 2016-17. As on March 31, 2022,
BPCL has made an investment of
Rs 272.08 crore and holds 20.89% on a fully diluted basis. FINO
Payments Bank (FPB) is the main operational subsidiary of the company. FPB is a listed
company, wherein FINO holds 75% share. In June 2022, FPB has completed five years of
operation.
PETRONET INDIA LIMITED (PIL)
PIL was formed in the year 1997 as a financial holding company to give
impetus to the development of pipeline network throughout the country. The company carried
out business through Special-Purpose Vehicles (SPVs) and Joint Venture Companies. In the
new Pipelines policy, oil companies were allowed to establish their own pipeline network.
PIL obtained appropriate approvals and proceeded to liquidate its investments in joint
ventures and subsidiaries. PIL's equity has been purchased by the respective promoter
companies, viz., the Petronet CCK Limited stake has been taken over by BPCL, the Petronet
MHB Limited stake has been taken over by HPCL and the ONGC and Petronet VK Limited stake
has been taken over by IOCL and Reliance Industries Limited (RIL). PIL filed an
application before NCLT and the paid-up share capital was reduced from Rs 100 crore to Rs
1 crore and Rs 99 crore was returned to its promoters. BPCL has 16% equity participation
in the company, with current investment of
_ 0.16 crore. During the year 2018-19, shareholders of the company had
approved voluntary winding up of PIL and appointed an Official Liquidator (OL) for the
same. Liquidation of the company is under process.
PETRONET CI LIMITED (PCIL)
PCIL was set up in the year 2000 for laying a pipeline for evacuation
of petroleum products from refineries at Jamnagar/Koyali to feed consumption zones in
Central
India. BPCL has an equity participation of 11% in this JV. Promoter
companies have decided to exit from PCIL, and provision for full diminution in the value
of investment has been done in the accounts of BPCL. The company is under liquidation.
BHARAT RENEWABLE ENERGY LIMITED (BREL)
BREL was incorporated in June 2008 for undertaking the production,
procurement, cultivation and plantation of horticulture crops such as Karanj, Jathropha
and Pongamia, trading, research and development, and management of all the crops and
plantation, including biofuels in the State of Uttar Pradesh, with an authorized capital
of Rs 30 crore. The company has been promoted by BPCL with Nandan Cleantec Limited (Nandan
Biomatrix Limited), Hyderabad and the Shapoorji Pallonji group, through their affiliate SP
Agri Management Services Pvt Ltd. A company petition was filed before the Hon'ble High
Court of Allahabad (Lucknow Bench) for winding up BREL. By the judgement dated December
21, 2015 the company was ordered to be wound up and an OL was appointed to proceed in
accordance with the provisions of the Companies Act. All assets and records of the company
have been deposited with the OL and the OL has since submitted a status request to the
Hon'ble High Court. A reply to the report submitted by the OL has been given and the
matter is pending in the Hon'ble High Court of Allahabad.
RATNAGIRI REFINERY AND PETROCHEMICALS LIMITED (RRPCL)
Ratnagiri Refinery and Petrochemicals Limited (RRPCL) is a Joint
Venture Company promoted by IOCL, BPCL and HPCL, with equity participation in the ratio of
50:25:25. RRPCL has planned to set up an integrated refinery-cum-petrochemical complex on
the west coast of Maharashtra. Saudi Aramco and ADNOC have also signed an MoU to partner
in RRPCL to jointly execute the Project along with IOCL, BPCL and HPCL. The allocation of
land for the project has been delayed. Recently, the Government of Maharashtra has offered
a land in Ratnagiri District of Maharashtra for the project, which is under evaluation to
ascertain its suitability.
IHB LIMITED (IHBL)
IHBL is a Joint Venture of IOCL, BPCL and HPCL, with equity
participation in the ratio of 50:25:25. IHBL was incorporated in July 2019 as IHB Private
Limited to construct, operate and manage approximately the
2,800-km-long Kandla-Gorakhpur LPG Pipeline (KGPL) for meeting the LPG
demand of the bottling plants en route the pipeline in the States of Gujarat, Madhya
Pradesh and Uttar Pradesh. The company was converted into a public limited company w.e.f
April 6, 2021. The pipeline is planned to meet the LPG requirement of 22 LPG bottling
plants of IOCL, HPCL and BPCL located in Gujarat, Madhya Pradesh and Uttar Pradesh.
The Kandla-Gorakhpur Pipeline would connect and meet requirement of 8
LPG bottling plants of BPCL situated at Hariyala, Indore, Bhopal, Jhansi, Kanpur, Lucknow,
Allahabad, and Gorakhpur. The approved total cost of the KGPL project was Rs 10,088 crore
and
_ 3305.45 crore have been incurred till March 31, 2022 under the
project. As on March 31, 2022 BPCL has made equity contribution of Rs 514.50 crore. As on
March 31, 2022, the overall progress achieved for the KGPL Project is 55.08%. The
scheduled completion date of the KGPL Project was December 2021. However, in view of the
adverse impact of the Covid-19 pandemic, the PNGRB has revised the scheduled completion
date, which is now December 2022.
UJJWALA PLUS FOUNDATION (UPF)
UPF was incorporated in July 2017 as a Joint Venture Company among the
three PSU Oil Marketing Companies, viz, BPCL, HPCL and IOCL (in the ratio of 25:25:50)
under section 8 of the Companies Act, 2013. The company receives donations from
individuals/Corporates/NGOs, etc., which shall be utilized for extending financial
assistance for making LPG available to economically disadvantaged households who are not
covered by Pradhan Mantri Ujjwala Yojana.
MANAGEMENT DISCUSSION & ANALYSIS REPORT (MDA)
The MDA for the year under review, as stipulated under Regulation 34(e)
of SEBI (Listing Obligations and Disclosures Requirement) Regulations, 2015, is presented
in a separate section forming part of the Annual Report. The forward-looking statements
made in the MDA are based on certain assumptions and expectations of future events. The
Directors cannot guarantee that these assumptions are accurate or these expectations will
materialize. The data, facts, figures and information given in the portions of MDA other
than Company performance have been taken from reports, studies and websites of the various
credible agencies.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGICAL
ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars as prescribed under Sub-Section (3)(m) of Section 134
of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, are enclosed as
Annexure A to the Directors' Report.
MEMORANDUM OF UNDERSTANDING WITH MINISTRY OF PETROLEUM & NATURAL
GAS
BPCL has entered into a Memorandum of Understanding (MoU) for the year
2021-22 with MoP&NG. An MoU for the year 2022-23 is under finalization. The Company
has achieved "Excellent" performance rating for MoU 2020-21 with a composite
score of 94.40%.
BOARD EVALUATION
As per the provisions of Section 134(3)(p) of the Companies Act, 2013,
a listed entity is required to include a statement indicating the manner of formal
evaluation of performance of the Board, its Committees and individual Directors. However,
the said provisions are exempted for Government Companies, as the performance evaluation
of the Directors is carried out by the Administrative Ministry, i.e., Ministry of
Petroleum and Natural Gas (MoP&NG), as per laid-down evaluation methodology.
In line with the Companies (Accounts) Rules, 2014, rule 8 (5) (iiia),
in the opinion of the Board, the Independent Directors appointed during the year 2021-22
possess integrity, requisite expertise and experience.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
The provisions of Section 134(3)(e) of the Companies Act, 2013 are not
applicable to a Government Company. Consequently, details of Company's policy on
Directors' appointment and other matters are not provided under Section 178 (3) of
the Act.
Similarly, Section 197 of the the Companies Act, 2013 shall not apply
to a Government Company. Consequently, there is no requirement of disclosure of the ratio
of the remuneration of each Director to the median employee's remuneration and other
such details, including the statement showing the names and other particulars of every
employee of the Company, who, if employed throughout/part of the financial year, was in
receipt of remuneration in excess of the limits set out in the Rules are not provided in
terms of Section 197(12) of the Act read with Rule 5 (1) / (2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014. The Chairman &
Managing Director and the Whole-time Directors of the Company did not receive any
remuneration or commission from any of its Subsidiaries.
BPCL being a Government Company, its Directors are appointed/nominated
by the Government of India as per the Government / DPE Guidelines, which also include
fixation of pay criteria, determining of qualifications and other matters.
CORPORATE GOVERNANCE
The Report on Corporate Governance, together with the Certificate on
compliance of Corporate Governance from Practicing Company Secretary, is appended as
Annexure D as required under Listing Regulations and Department of Public Enterprises
Guidelines of Corporate Governance for Central Public Sector Enterprises.
SECRETARIAL STANDARDS
The Company complies with the mandatory Secretarial Standards issued by
the Institute of Company Secretaries of India.
SOCIAL, ENVIRONMENTAL, ECONOMIC, STAKEHOLDER, CUSTOMER, HEALTH AND
SAFETY RESPONSIBILITIES AND BUSINESS RESPONSIBILITY REPORT
The Company is committed to be a responsible Corporate Citizen in the
society, which leads to sustainable growth and economic development for the nation as well
as all stakeholders. In order to be a responsible business to meet its commitment, the
Board of Directors of the Company have adopted and delegated to the Sustainability
Committee the implementation of a Business Responsibility Policy based on the principles
of National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of
Business as issued by the Ministry of Corporate Affairs, Government of India. BPCL's
Sustainability Report is in accordance with the Global Reporting Initiative (GRI).
As stipulated under the Listing Regulations, the Business
Responsibility Report describing the initiatives taken by the Company from the
environmental, social and governance perspective is appended as part of the Annual Report.
TRANSACTION WITH RELATED PARTIES
The required information on transactions with related parties are
provided in Annexure G in Form AOC-2 in accordance with Section 134(3) of the Act and Rule
8(2) of the Companies (Accounts) Rules, 2014. Apart from transactions mentioned in AOC-2
form, during the financial year, the Company entered into contracts or arrangements with
related parties which were in the ordinary course of business and on an arm's length
basis.
The Policy on related party transactions, including material related
party is available on the Company's website at the link
https://www.bharatpetroleum.in/bharat-petroleum-for/ Investors/Revised%20RPT%20Policy.pdf
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company has provided loans/guarantees to its subsidiaries/joint
ventures and has made investments in compliance with the provisions of the Companies Act,
2013. The disclosure in this regard as required under Regulation 34 read with Schedule V
of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in
Annexure H.
RISK MANAGEMENT
The Risk Management Committee has been constituted by the Board. The
Board has defined the roles and responsibilities of the Risk Management Committee, which
includes reviewing and recommending of the risk management plan comprising risks assessed
and their mitigation plans and reviewing and recommending the risk management report for
approval of the Board with the recommendation of the Audit Committee. The Company's
internal financial controls and risk management systems are assessed by the Audit
Committee/Board. The Company has adopted a Risk Management Charter and Policy for
self-regulatory processes and procedures for ensuring the conduct of the business in a
risk-conscious manner and for managing risks on an ongoing basis.
Accordingly, the Company has adopted Enterprise Risk Management Policy,
Commodity Risk Management Policy and Financial Risk Management Policy. As per the Risk
Management Charter and Policy, the Company has identified risks in the category of (i)
Business Excellence (ii) Operations (iii) Information Technology (iv) Human Resources (v)
Strategic (vi) Financial (vii) Logistics (viii) Marketing (ix) Legal and Regulatory (x)
Brand (xi) Environment (xii) Security (xiii) Procurement and (xiv) Research and
Development.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) / (5) of the Companies Act, 2013, the
Directors of the Company confirm that: a) In the preparation of the Annual Accounts for
the year ended 31 March 2022, the applicable Accounting Standards have been followed along
with proper explanation relating to material departures; b) The Directors have 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 at the end of the financial year and of the profit and loss of the
Company for that period; c) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; d) The Directors have prepared the annual accounts on a ‘going
concern' basis; e) The Directors have laid down internal financial controls to be
followed by the Company and such internal financial controls are adequate and are
operating effectively; and f) The Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and such systems are adequate and
operating effectively.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Board places on record its deep gratitude for the contribution and
guidance given by the following directors who demitted office during the year 2021-22 and
till date of the report: Shri N. Vijayagopal, Director (Finance) superannuated at the
close of office hours on 31.07.2021. He was also the Chief Financial Officer of the
Company. Shri Rajesh Aggarwal, Government Director, ceased to be a Director of the Company
w.e.f. 23.09.2021 on cessation of his tenure as Additional Secretary and Financial Adviser
of Ministry of Petroleum and Natural Gas. Shri K. Padmakar, Director (Human Resources),
superannuated at the close of office hours on 31.12.2021.
Shri K. Ellangovan, Government Director, ceased to be a Director of the
Company w.e.f. 01.02.2022 on his retirement as Principal Secretary, Industries &
NORKA, Government of Kerala. Shri Harshadkumar P. Shah ceased to be a Director of the
Company w.e.f. 16.07.2022 on completion of his tenure. Shri Arun Kumar Singh, Director
(Marketing), took over charge of Chairman & Managing Director w.e.f. 07.09.2021 and
also holds additional charge of Director (Marketing) w.e.f 14.09.2021. He also held
additional charge of Director (Refineries) up to 21.02.2022.
Shri Vetsa Ramakrishna Gupta was appointed as Chief Financial Officer
of the Company w.e.f. 01.08.2021. He was appointed as an Additional Director and Director
(Finance) w.e.f. 07.09.2021 and holds additional charge of Director (Human Resources)
w.e.f 01.01.2022. Further, he was appointed as Director by shareholders in the last AGM
held on 27.09.2021.
Shri Gudey Srinivas, Government Director, was appointed as an
Additional Director of the Company w.e.f. 13.10.2021 and he was appointed as Director by
shareholders by way of Postal Ballot w.e.f. 17.04.2022.
Independent Directors Shri Pradeep Vishambhar Agrawal, Shri Ghanshyam
Sher, Dr. (Smt.) Aiswarya Biswal, Prof. (Dr.) Bhagwati Prasad Saraswat and Shri Gopal
Krishan Agarwal were appointed as Additional Directors of the Company w.e.f. 12.11.2021
and subsequently they were appointed as Independent Directors by shareholders by way of
Postal Ballot w.e.f. 17.04.2022.
Shri Sanjay Khanna, Director (Refineries), was appointed as an
Additional Director of the Company w.e.f. 22.02.2022. Further, he was appointed as
Director (Refineries) by shareholders by way of Postal Ballot w.e.f. 17.04.2022.
Shri Suman Billa, Government Director, was appointed as an Additional
Director of the Company w.e.f. 16.03.2022. Further, he was appointed as Director by
shareholders by way of Postal Ballot w.e.f. 17.04.2022.
Shri Vetsa Ramakrishna Gupta would be retiring by rotation at the
ensuing Annual General Meeting and being eligible offers his candidature for
reappointment. A brief bio-data of Shri Vetsa Ramakrishna Gupta is provided in the Notice.
DECLARATION OF INDEPENDENCE
The Independent Directors of the Company have provided a declaration
confirming that they meet the criteria of independence as prescribed under the Companies
Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
FAMILIARISATION PROGRAMMES
The Company has adopted a policy for the training requirements of Board
Members. The details thereof with the programs sponsored for familiarization of
Independent Directors with the Company are available at the Company's web link
https://www.bharatpetroleum.in/bharat-petroleum
-for/Investors/Details%20of%20Familiarization%20Progra mmes.pdf
AUDIT COMMITTEE
The details of the composition of the Audit Committee, terms of
reference, meetings held, etc. are provided in the Corporate Governance Report, which
forms part of this Report. During the year there were no cases where the Board had not
accepted any recommendation of the Audit Committee.
VIGIL MECHANISM
There exists a vigil mechanism to report genuine concerns in the
Company. The Company has implemented the Whistle Blower Policy to ensure greater
transparency in all aspects of the Company's functioning. The objective of the policy
is to build and strengthen a culture of transparency and to provide employees with a
framework for responsible and secure reporting of improper activities.
The vigil mechanism provides for adequate safeguards against
victimization of persons who use the mechanism and has provision for direct access to the
Chairperson of the Audit Committee in appropriate or exceptional cases. The details of
establishment of such a mechanism are disclosed at the Company's web link
https://www.bharatpetroleum.in/bharat-petroleum-for/Inve
stors/Whistle%20Blower%20policy.pdf
NUMBER OF MEETINGS OF THE BOARD AND COMMITTEES OF THE BOARD
Fourteen meetings of the Board of Directors were held during the year.
The details of Board and Sub-Committee meetings held during the year and attendance of the
members thereat are provided in the Corporate Governance Report which forms a part of this
Report. The intervening gap between the Board meetings was within the period prescribed
under the Companies Act, 2013 and the Listing Regulations.
ANNUAL RETURN
As required under Section 92 (3) of the Companies Act, 2013, the Annual
Return of the Company for the year 2021-22 is available on the Company website at the
following link: https://www.bharatpetroleum.in/bharat-
petroleum-for/Investors/Shareholders-Meetings/Annual-Ge neral-Meeting.aspx.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL
STATEMENTS
The details are included in the MDA, which forms part of this Report.
STATUTORY AUDITORS
M/s. Kalyaniwalla and Mistry LLP, Chartered Accountants, Mumbai and
M/s. K.S. Aiyar & Co, Chartered Accountants, Mumbai, were appointed as Statutory
Auditors for the year 2021-22 by the Comptroller & Auditor General of India
(C&AG), under the provisions of Section 139(5) of the Companies Act, 2013. They will
hold office till conclusion of the ensuing Annual General Meeting. C&AG is in the
process for appointment of Statutory Auditors for the Financial Year 2022-23.
The Auditors' Report for the year 2021-22 does not contain any
qualification, reservation or adverse remark.
REPORTING OF FRAUDS BY AUDITORS
The Auditors in their report for the year have not reported any
instance of fraud committed by the officers/employees of the Company.
COST RECORD AND COST AUDIT
The Company has prepared and maintained cost records as prescribed
under Section 148(1) of the Companies Act, 2013 for the year 2021-22. The Cost Audit
Report for the year 2020-21 has been filed with the Ministry of Corporate Affairs before
due date in XBRL Format. The Cost Auditors for year 2020-21 were M/s. R. Nanabhoy &
Co, Mumbai and M/s. G. R. Kulkarni & Associates, Mumbai.
M/s R. Nanabhoy & Co, Mumbai and M/s G. R. Kulkarni &
Associates, Mumbai, were also appointed as the Cost Auditors for the year 2021-22. The
Cost Auditor shall, within a period of 180 days from the closure of the financial year,
forward the Cost Audit Report and the Company is required to file the Cost Audit Report
within 30 days of receipt of the same.
SECRETARIAL AUDITOR
The Board had appointed M/s. Upendra Shukla, Company Secretary, to
conduct the Secretarial Audit for the year 2021-22. The Secretarial Audit Report for the
year ended March 31, 2022 is appended as Annexure I to this Report. The Secretarial Audit
Report contains observations that during the period under review, the Company has complied
with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. as
applicable to the Company, except to the extent as mentioned below: i. The Company did not
have a) Optimum combination of executive and non-executive directors as required under
Regulation 17(1)(a) of SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 during the period 01/04/2021 till 11/11/2021. b) Requisite number of
Independent Directors on the Board as required under Section 149(4) of the Act and
Regulation 17(1)(b) of SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 during the period 01/04/2021 till 11/11/2021. c) Minimum 6 directors as
required for top 1000 listed companies during the period 01/08/2021 till 06/09/2021 and
during the period 23/09/2021 till 12/10/2021.
d) A woman Independent Director as required under Section 149 of the
Act read with Companies (Appointment and Qualification of Directors) Rules, 2014 and
Regulation 17(1)(a) of SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 during the period 01/04/2021 to 11/11/2021. e) Proper composition of the
Audit Committee as required under Section 177(2) of the Act and Regulation 18(1)(a), (b)
and (d) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and
Nomination and Remuneration Committee as required under Section 178(1) of the Act and
Regulation 19(1)(a) of SEBI during the period 01/04/2021 to 11/11/2021. ii. The Company
has not held any meeting of Audit Committee as required under Regulation 18(2)(a) of SEBI
(Listing Obligations & Disclosure Requirements) Regulations, 2015 during the period
from 01/04/2021 to 10/01/2022.
Explanations by the Board to the above observations in the Secretarial
Auditor Report: Bharat Petroleum Corporation Ltd (BPCL) is a Government Company under the
Administrative Control of Ministry of Petroleum and Natural Gas. The
nomination/appointment of all categories of directors are done by Government of India in
accordance with the laid down guidelines of Department of Public Enterprises. Accordingly,
the subject matter of nomination/appointment of adequate number of Independent Directors
including Woman Director falls under the purview of the Government of India. BPCL has from
time to time communicated to the Ministry of Petroleum & Natural Gas with respect to
the requirements of Independent Directors, including Woman Director, under the Companies
Act, 2013 and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
BPCL was not able to constitute an Audit and Nomination and Remuneration Committee as BPCL
had only one Independent Director during the period referred by the Secretarial Auditor.
However, all the obligations of these Committees were exercised by the Board of Directors.
After continuous follow up, the Govt. of India, vide their letter dated 08.11.2021 had
communicated the nomination of
ve Independent Directors on the Board, including Women
Independent Director. Accordingly, these Directors were inducted on the
Board w.e.f. 12.11.2021. As a result, as on 12.11.2021, BPCL had six Independent
Directors, two Govt. Directors and three whole-time Directors.
Accordingly, BPCL reconstituted Audit Committee & Nomination and
Remuneration Committee on 4.12.2021 after proper induction programme to the Independent
Directors and as on date BPCL has complied with respective provisions under Companies Act,
2013 and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
GENERAL
There were no significant or material orders passed by the Regulators
or Courts or Tribunals impacting the going concern status and Company's operations in
future. The Company has not issued equity shares with differential rights/sweat equity
shares.
The Company has an Internal Complaints Committee (ICC) to address
complaints pertaining to sexual harassment in the workplace. During the year, two (2)
complaints of sexual harassment were received in respect of the employees, and one (1)
complaint was disposed off during the year 2021-22 by the Internal Complaints Committee
and one (1) complaint was pending for more than 90 days, where the enquiry has been
concluded and the report is being finalized. The Company has worked extensively on
creating awareness on the relevance of sexual harassment issues and has conducted fifteen
awareness programs for employees.
ACKNOWLEDGEMENTS
The Directors convey their appreciation for the admirable performance
of the Company, which has been made possible by the sterling efforts of the employees.
They have exhibited time and again their deep commitment and passion for results, which
has propelled the Company to the vaunted position it enjoys today. The Directors
acknowledge the support and guidance received from various Ministries of the Government of
India, particularly the Ministry of Petroleum & Natural Gas, and from various State
Governments, which has paved the path for BPCL's march of success.
Our passion to excel in all endeavors is invigorated by the trust and
loyalty of our customers, business partners and shareowners, who are a constant source of
inspiration. In this profound journey, the Directors stand committed as ever to steer the
Company towards an even more promising future.
|
For and on behalf of the Board of Directors |
|
Sd/- |
|
Arun Kumar Singh |
|
Chairman & Managing Director |
| Place: Mumbai |
|
| Date: July 29, 2022 |
|
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