Bharat Petroleum Corporation Ltd
Directors Reports
The Board of Directors takes pleasure in presenting their Report on the performance of
Bharat Petroleum Corporation Limited (BPCL) for the year ended March 31, 2023.
PerFormANce oVerVieW Group Performance
During the year 2022-23, the aggregate refinery throughput of BPCL's refineries at
Mumbai, Kochi and Bina was 38.53 million metric tonnes (MMT), as compared to 36.90 MMT
during the year 2021-22. The BPCL Group ended the year with market sales of 48.92 MMT, as
compared to 42.51 MMT during the year
2021-22. During the year, the BPCL Group exported
1.31 MMT of petroleum products, as against 2.12 MMT during the year 2021-22. The growth
in physical parameters was in line with the increase in demand of petroleum products.
During the year, the Group achieved the highest-ever Gross Revenue from Operations of Rs.
5,33,547.29 crore, as compared to Rs. 4,32,569.62 crore in the year 2021-22.
The Net Profit attributable to BPCL stood at Rs. 2,131.05 crore in the year 2022-23, as
against Rs. 11,681.50 crore in the previous year. The Group has recorded Earnings per
Share of Rs. 10.01 in the year, as against Rs. 54.91 per share in the year 2021-22
| coNsoLiDAteD GroUP resULts |
2022-23 |
2021-22 |
| Physical Performance |
|
|
| Refinery Throughput (MMT) |
38.53 |
36.90 |
| Market Sales (MMT) |
48.92 |
42.51 |
| Financial Performance |
|
Rs. in crore |
| Revenue from Operations |
5,33,547.29 |
4,32,569.62 |
| Profit before Finance Costs, Depreciation, Share of profit/(loss) of equity
accounted investee, exceptional items and tax |
12,386.33 |
21,405.84 |
| Finance Cost |
3,745.38 |
2,605.64 |
| Depreciation & Amortization expense |
6,368.82 |
5,434.35 |
| Profit before Share of profit/(loss) of equity accounted investee, exceptional
items and tax |
2,272.13 |
13,365.85 |
| Share of Profit/(loss) of equity accounted investee (net of income tax) |
2,191.92 |
1,535.73 |
| Exceptional Items - Income/(Expense) |
(1,642.92) |
1,135.15 |
| Profit before Tax |
2,821.13 |
16,036.73 |
| Provision for Taxation Current Tax |
353.11 |
2,706.42 |
| Provision for Taxation Deferred Tax |
379.87 |
690.75 |
| Short/(Excess) provision for Taxation for earlier years |
(42.90) |
958.06 |
| Net Profit for the year |
2,131.05 |
11,681.50 |
| Net Profit attributable to BPCL |
2,131.05 |
11,681.50 |
| Other Comprehensive Income attributable to BPCL |
761.29 |
402.12 |
| total comprehensive income attributable to bPcL |
2,892.34 |
12,083.62 |
| Group Basic and Diluted Earnings per share attributable to BPCL (Rs. per share) |
10.01 |
54.91 |
company standalone Performance
During the year 2022-23, the refinery throughput at BPCL's refineries at Mumbai, Kochi
and Bina was 38.53
MMT, as against 35.89 MMT [including throughput of erstwhile Bharat Oman Refineries
Limited (BORL) on account of merger] achieved in 2021-22. The market sales of the Company
increased by 15.08%, from 42.51 MMT in the year 2021-22 to 48.92 MMT in the year 2022-23.
The growth in physical parameters was in line with the increase in demand of petroleum
products.
| comPANY stANDALoNe resULts |
2022-23 |
2021-22 |
|
|
(restated)* |
| Physical Performance |
|
|
| Refinery Throughput (MMT) |
38.53 |
35.89 |
| Market Sales (MMT) |
48.92 |
42.51 |
| Financial Performance |
|
Rs. in crore |
| Revenue from Operations |
5,33,467.55 |
4,32,422.48 |
| Profit before Finance Costs, Depreciation, Exceptional Item andTax |
13,140.62 |
21,655.38 |
| Finance Cost |
3,216.48 |
2,208.81 |
| Depreciation & Amortization expense |
6,347.48 |
5,417.90 |
| Profit before Exceptional Item and Tax |
3,576.66 |
14,028.67 |
| Exceptional Items - Income/(Expense) |
(1,359.96) |
1,643.07 |
| Profit before Tax |
2,216.70 |
15,671.74 |
| Provision for Taxation - Current Tax |
352.18 |
2,706.34 |
| Provision for Taxation - Deferred Tax |
37.32 |
643.99 |
| Short/(Excess) provision for taxation of earlier years |
(42.90) |
958.06 |
| Net Profit for the year (A) |
1,870.10 |
11,363.35 |
| Other Comprehensive Income (OCI) |
(240.10) |
287.82 |
| total comprehensive income for the year |
1,630.00 |
11,651.17 |
| Opening Balance of Retained Earnings (B) |
9,062.62 |
16,009.09 |
| Amount available for Appropriation (A+b) |
10,932.72 |
27,372.44 |
| Appropriations/Others: |
|
|
| Final Dividend of previous year |
1,301.55 |
12,581.67 |
| Interim Dividends |
- |
2,169.25 |
| Transfer to Debenture Redemption Reserve |
50.00 |
207.75 |
| Transfer to General Reserve |
- |
3,000.00 |
| Income from "BPCL Trust for Investment in Shares" # |
(19.78) |
(224.13) |
| Income from "BPCL ESPS Trust" # |
(2.63) |
(36.06) |
| Re-measurements of Defined Benefit Plans (Net of tax) |
277.33 |
20.89 |
| Effect of merger of BORL |
- |
590.45 |
| Closing Balance of Retained Earnings |
9,326.25 |
9,062.62 |
| Summarized Cash Flow Statement: |
|
|
| Cash Flows: |
|
|
| Inflow/(Outflow) from Operating Activities |
10,664.05 |
20,813.45 |
| Inflow/(Outflow) from Investing Activities |
(6,397.31) |
(7,743.73) |
| Inflow/(Outflow) from Financing |
(3,665.87) |
(18,661.77) |
| Net increase/(decrease) in cash & cash equivalents |
600.87 |
(5,592.05) |
*Pursuant to merger of Bharat Oman Refineries Limited (BORL) and Bharat Gas
Resources Limited (BGRL), the previous period Financial Results have been restated. #
Represents addition to Retained Earnings
BPCL achieved the highest-ever Gross Revenue from Operations of Rs. 5,33,467.55 crore
in the year 2022-23, a 23.37% increase from previous year's revenues of
Rs. 4,32,422.48 crore. The Profit before Tax for the year was Rs. 2,216.70 crore, as
compared to Rs. 15,671.74 crore in the year 2021-22. After providing for Tax (including
Deferred Tax, Short/(Excess) provision for previous years) of Rs. 346.60 crore, as against
Rs. 4,308.39 crore during the previous year, the Profit after Tax for the year stood at
Rs. 1,870.10 crore, as against Rs. 11,363.35 crore in the year 2021-22.
Profit for the current year is lower as compared to the previous year mainly due to the
suppressed marketing margins of certain petroleum products, depreciation of the Indian
Rupee vis a vis the US dollar and exceptional loss on impairment of Investment in
Subsidiary Company in the year 2022-23.
Internal Generation after adjusting Final Dividend of previous year, Depreciation and
Deferred Tax during the year was higher at Rs. 8,228.88 crore, as against Rs. 3,827.72
crore (after interim dividend) in the year 2021-22, mainly on account of the final
dividend of the year 2020-21 amounting to Rs. 12,581.67 crore paid during the previous
year 2021-22.
The Basic and Diluted Earnings per Share amounted to
Rs. 8.78 per share for the year 2022-23, as compared to
Rs. 53.41 per share for the year 2021-22. The Basic and Diluted Earnings per Share is
after adjustment of BPCL shares held by "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 2022-23 amounted to Rs. 1,39,210.62 crore, as
against Rs. 1,47,056.92 crore
(excluding contribution made by the erstwhile BORL and BGRL in the year 2021-22) in the
previous year.
As on March 31, 2023, BPCL's total equity stands at Rs. 51,996.34 crore, as against Rs.
51,645.48 crore at the end of the previous year.
Dividend
The Board of Directors has recommended a dividend of
Rs. 4 per share (i.e., @ 40% of the paid-up share capital) for the year 2022-23 on the
paid-up share capital of
Rs. 2,169.25 crore, amounting to Rs. 867.70 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.
Friday, August 11, 2023 has been fixed as the Record
Date for the purpose of payment of dividend on equity shares for the year ended March
31, 2023, if declared at the AGM.
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,
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. 50 crore has been
transferred to the Debenture Redemption Reserve. Further, Rs. 1,135.09 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 capital infusion through
rights issue of equity shares
The Board of Directors has approved the proposal for raising capital up to an amount
not exceeding Rs. 18,000 crore. This capital will be raised by way of issue of equity
shares on rights issue basis to eligible equity shareholders of the Company as on the
record date, as notified by the Board, subject to all statutory approvals and in
accordance with all applicable laws, including the
Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, as amended from time to time. The detailed terms of rights issue
including but not limited to the issue price, rights entitlement, timing, and terms of
payment will be decided by the Board in the due course based on the advice of the
intermediaries and the approvals from appropriate authorities in this respect.
emPLoYee stocK PUrchAse scheme (esPs)
TheCompanyhadformulatedanEmployeeStockPurchase 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. During the year under review, there
has been no change in the BPCL Employee Stock Purchase Scheme 2020 of the Company. The
Scheme is in compliance with SEBI
(Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and this has been
certified by the secretarial auditors of the Company. The certificate of the secretarial
auditor can be accessed at https://www. bharatpetroleum.in/Bharat-Petroleum-For/Investors/
Shareholders-Meetings/Annual-General-Meeting.aspx
In line with Regulation 14 of the SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations,
2021, a statement giving complete details, as on March 31, 2023, is available on the
website of the Company at
https://www.bharatpetroleum.in/Bharat-Petroleum-For/Investors/Shareholders-Meetings/Annual-General-Meeting.aspx
The "BPCL ESPS Trust" held 68,36,948 shares at the end of the year, on behalf of
the employees. The Trust did not exercise voting rights in respect of the above shares.
borrowings
Total Borrowings of the Company as on March 31, 2023 stood at Rs. 35,854.80 crore, as
against Rs. 33,614.53 crore as on March 31, 2022.
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. 12,120.33 crore, as compared to
Rs. 11,860.16 crore (excluding capital expenditure made by erstwhile BORL and BGRL in the
year 2021-22) during previous year. 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 together with the proportionate share of
Capital Expenditure incurred by its Subsidiaries
(Group), JVCs and Associates during the year is Rs. 11,353.13 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,
2023 is appended as Annexure E.
As on March 31, 2023, there are nine pending published paras related to the C&AG
audit, which are appended as
Annexure F. reFiNeries
In the year 2022-23, BPCL group refineries achieved a total crude throughput of 38.53
MMT vs 35.89
MMT in the previous year. The financial year unfolded with significant challenges to
the refineries with uncertainties in crude oil supply posed due to the unprecedented
situations caused by the Russia-Ukraine war. BPCL diligently took proactive steps to tide
over the situation and drive positive outcomes for the Company. Continuous improvement
initiatives were prioritised across all aspects of group refineriesresulting in enhanced
operational efficiency, enabling the group refineries to achieve the highest-ever gross
refining margin (GRM) of $20.24/bbl for the financial year 2022-23. The focus on quality
control and rigorous testing procedures ensured that the refinery products consistently
met or exceeded customer expectations. The erstwhile BORL's refinery at Bina, post the
merger, is now a new Business Unit of the Company. The inclusion of this third refinery in
BPCL's refining portfolio is enabling optimization of resources, sharing of best
practices, and the creation of a unified vision for the refinery's future growth and
success.
During this financial year, the Company's ‘Refineries
Crude Basket' increased with addition of 5 new Crude
Oils, thereby increasing the flexibility of our refining operations. BPCL group
refineries can now process total of 106 types of crudes. BPCL's refineries at
Kochi and Bina, are capable of processing 100% high sulphur crude.
Three noteworthy projects, viz. installation of a 1.5 MMTPA Kerosene Hydrotreater Unit
(KHT), capacity enhancement of Lube Oil Base Stock (LOBS) unit from 300 kilotonnes per
annum (KTPA) to 450 KTPA and installation of a De-Aromatized Solvent (DAS) column, were
commissioned in Mumbai Refinery (MR) during this financial year. These new units will
significantly bolster the business operations and position the Company for future growth.
At refineries, continuous innovation and adaptation emerges as key drivers for
sustainable growth. In the previous financial year alone, the Company delivered
(SAP), a new product from the same complex, was launched in July 2022. BR dispatched
its first batch of low pour point diesel for use in cold regions by Indian Army. BR also
commenced Mineral Turpentine Oil (MTO) transportation via Bina-Kota-Bijwasan Pipeline for
the first time, thereby reducing transportation cost.
With this, Bina-Kota-Bijwasan Pipeline is now able to handletransportationoffive .
different products mArKetiNG
The year 2022-23 was a challenging year for BPCL on the marketing front. While the
economy was on a recovery path post the COVID pandemic, various geopolitical tensions and
uncertainties mired the global and Indian Oil & Gas sector. During the year 2022-23,
BPCL's market sales volume increased by 15.08% to 48.92 MMT, as compared to 42.51 MMT in
the previous year. BPCL's market share amongst public sector oil companies stood at 25.07
% as on March 31, 2023, as compared to 24.73% at the end of the previous year. This is the
highest-ever sales volume and market share achieved by BPCL.
Performance of Refineries
| Parameters |
Mumbai Refinery |
Kochi Refinery |
Bina Refinery |
total |
| Refinery Throughput (MMT) |
14.66 |
16.12 |
7.75 |
38.53 |
| crude oil Processed (mmt) |
14.55 |
16.02 |
7.84 |
38.41 |
| capacity Utilisation (%)* |
121.2 |
103.3 |
100.5 |
108.8 |
| Grm ($/bbl) |
15.20 |
21.01 |
28.18 |
20.24 |
*Capacity utilization is the % of Crude oil processed to the design capacity.
a few new specialised products. MR developed and commercialized smokeless kerosene,
which has superior combustion quality for heating applications at higher altitudes and
caters to the needs of Indian Army. The LOBS product portfolio was increased with the
launch of a new specialty product "D40", an industrial solvent.
Through innovation-led process operations, the refineries delivered record-breaking
production levels. In the year 2022-23, production of high value products like Motor
Spirit (MS), Benzene and Toluene at KR surpassed its past records. Post stabilization of
Propylene based Petrochemical Plant units at KR, the production of import substitute niche
products was almost doubled this year. Superabsorbent Polymer
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 2,599 km with a design capacity of 20.9
million metric tonnes per annum (MMTPA) and 937 km of crude pipeline with a design
capacity of 7.8 MMTPA.
During the year 2022-23, product pipelines achieved a throughput of 19.06 MMTPA, as
against 16.54 MMTPA in the previous year. Crude pipelines achieved a throughput of 7.81
MMTPA, as against 7.42 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).
To enhance the safety and security of its cross-country pipeline network, Fibre Optics
based Pipeline Intrusion Detection Systems (PIDS) was commissioned for Mumbai-Kota
Pipeline section. With this, the entire 1,389-km Mumbai-Manmad-Bijwasan Pipeline (MMBPL)
is now covered under PIDS. A total of 1,245 km of PIDS commissioned in the year 2022-23.
PIDS commissioning in Kochi-Coimbatore-Karur Pipeline (CCKPL) section is in progress. By
March 2024, a total of 2,520 km of pipelines would be covered under PIDS, which will
result in 97% of total product pipelines coverage under PIDS.
mAJor ProJects
Details of major completed/ongoing projects during the year are given below. Approved
project cost indicated for each project is net of input tax credit.
Projects completed in 2022-23
enhancing production of Lube oil base stock (Lobs) at Mumbai Refinery
Revamp of LOBS production capacity from 300
TMTPA to 450 TMTPA at Mumbai Refinery to reduce import of LOBS. The project, with an
approved cost of Rs. 614 crore was completed in July 2022.
nstallation of new Kerosene hydrotreater (Kht) at
Mumbai Refinery
New Kerosene Hydrotreater (KHT) of 1.5 MMTPA capacity, integrated with existing Diesel
Hydrotreater
(DHT), to produce Aviation Turbine Fuel (ATF) and Kerosene meeting Sulphur
specification of max 10
Parts Per Million by Weight (PPMW) and to increase HSD (diesel) production. The
project, with an approved cost of Rs. 667.15 crore was completed in December 2022.
Development of Coastal Terminal with Railway siding at Krishnapatnam, Andhra Pradesh
Setting up of Coastal Terminal of 100 thousand kilolitres (TKL) storage capacity with
railway siding at Krishnapatnam port. The project, with an approved cost of Rs. 580.20
crore was completed in December 2022.
New Petroleum, oil, and Lubricants (PoL) Depot at radhanagar (bokaro), Jharkhand
Construction of a new POL Depot at Radhanagar (Bokaro) with storage capacity of 22 TKL
along with railway siding to meet the future market demand. This new POL depot is in place
of the old Ranchi and Dhanbad depots. The project, with an approved cost of Rs. 247.17
crore, was completed in March 2023.
ongoing Projects
Integrated 2G + 1G Ethanol Bio-refinery at Bargarh, odisha
The project envisages setting up of integrated 2G and 1G Bio-Ethanol plant at Bargarh,
Odisha with a cumulative production capacity of 200 kilolitres (KL) of Ethanol per day.
The Ethanol produced will be used for blending in Motor Spirit. The approved cost of the
project is Rs. 1,397 crore. The project has achieved physical progress of 72.5% as on
March 31, 2023 and is scheduled for completion in March 2024.
rugur-Devangonthii multiproduct Pipeline Project
The project envisages laying of 352-km-long 16-inch diameter multiproduct cross-country
pipeline with a throughput capacity of 3.5 MMTPA from Irugur (Tamil Nadu) to Devangonthi
(Karnataka). The activities for Right of Use (RoU) acquisition and permissions from
authorities for laying the pipeline are under progress. The approved cost of the project
is Rs. 1,724.93 crore. The project is scheduled for completion in October 2025.
multiproduct Pipeline from Krishnapatnam coastal terminal to terminal near hyderabad
The project envisages laying of 455-km-long, 16-inch diameter multi-product pipeline
with a throughput capacity of 4.4 MMTPA from Krishnapatnam Coastal Terminal to POL
Terminal at Malkapur near Hyderabad. The project scope also includes construction of
additional tankages at Krishnapatnam and Ongole. The activities for RoU acquisition and
permissions from authorities for laying the pipeline are under progress. The approved cost
of the project is Rs. 1,925.68 crore. The project is scheduled for completion in March
2025.
common User Facility PoL terminal at Jammu
The project envisages construction of new POL Terminals at Jammu on Common User
Facility (CUF) basis for PSU Oil Marketing Companies (OMCs)
(BPCL, IOCL and HPCL) with BPCL as lead company.
The new facility, which will replace the existing old depots of OMCs, will strengthen
the marketing logistics infrastructure in Union Territories of Jammu
& Kashmir (J&K) and Ladakh to meet present and future volume of the entire
J&K and Ladakh and also to cater to the requirements of the Defence Forces. The
approved cost of the project is Rs. 676.89 crore. Jobs relating to land development and
boundary wall are in progress. The project is scheduled for completion in March 2025.
common User Facility PoL terminal at sadashibpur ( m eramundali), odisha
The project envisages setting up a POL Terminal at Sadashibpur (Meramundali), Odisha on
Common User Facility (CUF) basis for PSU OMCs, with BPCL as lead company, to meet the
demands of Central/
North Odisha economically. Currently, PSU OMCs 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. Jobs relating to
land development and boundary wall are in progress. The project shall be completed in two
years from receipt of all statutory approvals and a final go-ahead from OMCs.
Augmentation of Cryogenic Facilities at Uran LPG i mport terminal
The project envisages debottlenecking and augmentation of cryogenic facilities at Uran
to meet future import requirement and ensure uninterrupted and smooth supply chain
operation to meet growing LPG demand. The approved cost of the project is
Rs. 1,164.69 crore. The project has achieved overall physical progress of 22.1% as on
March 31, 2023 and is scheduled for completion in April 2025.
Lube oil blending and Filling Plant at rasayani
The project envisages construction of fully automated and efficient Lube Oil Blending
and Filling Plant with modern processing facilities at Rasayani as a resitement of
existing Wadilube plant. The approved cost of the project is Rs. 423.39 crore. The project
has achieved overall physical progress of 40% as on March 31, 2023 and is scheduled for
completion in September 2024.
nstallation of ndependent De- Aromatizedi solvents
(DAS) unit at Mumbai Refinery
The project envisages setting up an independent train of DAS unit of 200 thousand
metric tonnes per annum (TMTPA) capacity to meet growing demand for various grades of
specialty De-Aromatized Solvent products such as D40, D60, D110 and D130, in addition to
D80 Grade. De-Aromatized Solvents, which are majorly imported, find extensive use in
consumer products such as household insecticides, mosquito repellents and aerosols. The
approved cost of the project is Rs. 405 crore. The project is scheduled for completion in
July 2025.
replacement and extension of Jetty Pipelines for Kochi Refinery
The project envisages replacement of old Jetty product pipelines of black and white oil
service from
Kochi Refinery (KR) to North Jetty Reclamation Pit
(NJRP) with Aviation Turbine Fuel (ATF) and HSD lines. The project scope also includes
laying a new MS pipeline from NJRP to Cochin Oil Terminal (COT) and modification of ATF
tanks, KR tanker loading pumps and associated suction piping, etc. This new pipeline will
be an extension of the existing MS (petrol) line from KR to NJRP. The project aims to
enhance tanker loading rates, reduce turnaround time for tankers, and ensure uninterrupted
product evacuation from KR through coastal routes. The approved cost of the project is Rs.
621.87 crore. The project is scheduled for completion in March 2026.
city Gas Distribution (cGD) Projects
With the merger of Bharat Gas Resources Ltd. (BGRL) with BPCL, and award of 8 new
Geographical Areas (GAs) in 11 and 11A City Gas Distribution (CGD) bid rounds, BPCL
currently has authorization for laying, building, operating and expansion of CGD network
in 25 GAs covering a total of 62 districts across the country for a period of 25 years.
The approved cost of all the 25 GAs is Rs. 47,688.00 crore. Activities in all GAs are in
progress as per the Minimum Work Programme (MWP) targets.
reseArch AND DeVeLoPmeNt (r&D)
Research and Development (R&D) plays a pivotal role in today's competitive
environment for business growth and sustainability. In this context, the Intellectual
Property Rights generated through focused R&D efforts offer a platform for market
differentiation as well as promotion of indigenous technologies towards "Aatmanirbhar
Bharat".
The Corporate Research & Development Centre (CRDC) of BPCL located in Greater
Noida, Uttar Pradesh is actively pursuing research in areas such as niche Petrochemicals,
Biofuels, Alternate Energy, Green
Hydrogen, and Carbon Dioxide mitigation, in addition to conventional oil refining and
related processes. The
Product & Application Development Centre's (P&AD) R&D team located in
Sewree, Mumbai is working on developing novel automotive, industrial and eco-friendly
lubricant formulations to meet business demands.
During the year 2022-23, CRDC achieved significant milestones by developing innovative
products. These include development of a) PNG stove with higher efficiency
b) Agri-grade Superabsorbent Polymer
(SAP) for retention of moisture of soil in arid regions, c) Smokeless kerosene for
defense applications in high-altitude areas. As a part of import substitute, R&D
programs were undertaken to develop pathways to produce niche process chemicals and
catalysts using refinery streams. On similar lines, R&D programs were initiated for
valorization of Acrylic Acid and Acrylate products. Further, focused efforts were made to
valorize biorefinery waste streams for sustainable 1G and 2G biorefinery operation. this
regard, process know-how has been developed for production of biodegradable film for
packaging industry and green silica for tyre industry. Likewise, advancements were made in
Carbon Capture and Utilization front to accomplish Corporate Net-Zero 2040 vision. In this
direction, efforts were continued to develop cost-effective and energy-efficient CO2
capture
processes, while developing processes for converting captured CO2 to produce
value-added chemicals such as methanol, formic acid, etc. A Memorandum of Understanding
was signed with Curtin University, Australia to develop applications of novel structured
packing, "SPIROPAK", which offers a very low-pressure drop compared to benchmark
structured packings for CO2/H2S absorption applications.
Additionally, development of novel membrane-less electrolyzer technology was fostered
for green hydrogen production and efforts to develop electrolyzer value chain were
continued for indigenous production. As a part of clean fuel program, a) an ethanol-diesel
blend has been developed, in collaboration with original equipment manufacturers (OEMs),
for automotive and stationary applications, and b) indigenous catalyst formulations for
Sustainable Aviation Fuel (SAF) production based on Oil to Jet route were developed
successfully. On the other hand, the R&D wing of P&AD continued its association
with major automotive OEMs in the country for developing engine oils of international
standards. As a result, the R&D wing of P&AD has developed new product portfolios
including long-life heavy-duty diesel engine oil with fuel economy benefit for BS VI
trucks and buses, engine oil for higher CC scooters, industrial lubricants using
re-refinedbase oils, premium coolant for indirect cooling for battery electrical vehicles
(BEVs) and internal combustion engines (ICEs), engine oil formulated with re-refined base
oil and NOx reduction agent (Diesel Exhaust Fluid) for Selective Catalytic Reduction (SCR)
system-equipped BS IV/BS VI diesel vehicles.
BPCL-R&D efforts were recognized at various prestigious awards during the year
2022-23. Bharat HiGee Deaeration Technology received Ministry of Petroleum & Natural
Gas (MoPNG) Best Indigenously Developed Technology Award 2021-2022 and BharatH2Sep
Technology received MoPNG Best Innovation in R&D Institute Award 2021-2022. The
focused R&D efforts during the year 2022-23 resulted in the grant of 5 Indian and 2
foreign patents, respectively. On the other hand, 18 new patent applications (5 Indian and
13 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 endeavor to improve the
processes, increase operational efficiencies and reduce energy consumption.
Some of these innovations are:
Kochi Refinery has carried out process innovation to improve efficiency of Diesel
Hydrotreater (DHDT) Charge Heater, leading to fuel savings. Plate-type heat exchangers
were installed to increase preheat in Integrated Refinery Expansion Plan (IREP) sour water
stripper and Amine
Regeneration trains, thereby reducing reboiler steam consumption. Innovative
modernization of Standalone Water Supply System (SWSS) 66kV yard and substation was
undertaken to ensure reliability of the system.
Mumbai Refinery successfully implemented innovative ideas based on internal studies for
Flash steam recovery system using thermo-compressor by utilizing recovered flash steam,
packing replacement in Crude Distillation Unit
3 (CDU3) for Vacuum Gas Oil (VGO) T-95 improvement and Flexible and Removable
Insulation Covers (FRIC) were provided for steam valves to reduce radiation heat losses
and achieve steam savings.
The Business Units have taken forward the Company's flagshipdigital initiative
"Project Anubhav", which is aimed at reinforcing Trust, Convenience and
Personalization for our consumers and enhancing efficiencies and transparency in
operations. The Customer Engagement
Platform (CEP) was implemented to provide exceptional experience to customers while
interacting with BPCL across all our business units. CEP also provides innovative
cross-selling and up-selling opportunities to the Company. IRIS, the digital nerve centre
of BPCL, has been strengthened across Retail, LPG and Industrial & Commercial business
units for real-time monitoring of key performance indicator (KPI) and taking immediate
action for any exceptions. Customers are now able to avail of various benefits, including
loyalty for BPCL products at their fingertips.
Secondary Sales Management (SSM) System was implemented at Lubes BU to ensure
discipline in order fulfilment and accountability for each item across the supply chain
and the same is integrated with HelloBPCL to enable offerings of retailer and mechanic
loyalty programs. The QR code solutions was further strengthened and integrated with SSM
to achieve a complete end-to-end traceability of each stock keeping unit (SKU) and to
offer dynamic instant rewards to end-customers and reaffirm product genuineness.
UFill, an innovative customer facing initiative, which delivers the promise of
"Pure for Sure", ensures that customers have complete control of their fueling
with the use of technology. In addition, various other innovations, including Auto
Accounting of Own Use Product (HSD, i.e., diesel) quantity in SAP through Terminal
Automation System (TAS), retail operations portal, etc. to enhance internal processes,
operations and governance were carried out during the year.
Total expenditure on research and development activities and innovation initiatives
during the year 2022-23 was
Rs. 168.60 crore.
i NDU striAL reLAtioNs
BPCL continued its thrust towards maintaining industrial harmony through continuous
interface and engagement with Unions. The Unions and the workmen demonstrated their
commitment to achieve organizational objectives by partnering in various processes. While
the Long-Term Settlements on wages and other matters have been successfully signed with
all the eligible marketing unions and majority of the eligible population in Mumbai
Refinery, the discussions with non-signatory unions of refineries are in progress.
There were no cases of any industrial unrest. All organizational and employee-related
issues were handled with a collaborative approach and regular communication was ensured to
all employees on all important issues affecting them and BPCL.
corPorAte sociAL resPoNsibiLitY
Pursuing its Corporate Social Responsibility (CSR) vision, "Be a Model Corporate
Entity with Social Responsibility committed to Energizing Lives through Sustainable
Development", BPCL is committed to the communities around its business locations and
far beyond, through its CSR initiatives. Through its CSR programs, the Company touches the
lives of millions and seeks to make a positive difference in their lives. Sustainability
of the initiatives is at the core of CSR activities factoring in community needs and
cultural sensitivities, in the thrust areas of Health & Sanitation, Education, Skill
Development, Community Development and Environmental Sustainability. In the year 2022-23,
BPCL undertook various initiative in line with Sustainable Development Goals (SDGs) and
national priorities of ‘Health & Nutrition' under the thematic area advised by
Department of Public Enterprises (DPE). Annual Report on CSR, including composition of CSR
Committee, is enclosed as Annexure B. The details of
CSR policy, projects and programs are available on the website of the Company at
https://www.bharatpetroleum. in/social-responsibility/csr-reporting.aspx
Out of the total CSR allocation of Rs. 190.95 crore for the year 2022-23, Rs. 128.67
crore was spent during the year. The shortfall of Rs. 108.92 crore (including unspent
amount of previous financial years) remained unspent because a number of projects were
approved during the second, third, and fourth quarters of the year 2022-23, with
implementation spread over more than one year. Further, payments made to implementing
agencies are linked to achievement of key deliverables and thus actual expenditure against
approved projects rolls beyond the financial year.
CSR amount unspent in the current financial year has been allocated to approved
projects and transferred to separate unspent CSR Account as mandated by the Companies Act
and the same will be spent in accordance with provision of the said act.
CSR initiatives are largely in and around areas of need, aspirational districts or
nearby the Company's business units.
Under the ambit of cancer care, BPCL has taken up cancer care program, promoting
preventive care through cancer screening in oral, breast and cervical cancers, while also
providing free-of-cost quality cancer treatment to the underprivileged population in 10
Government/charitable hospitals, along with supporting rehabilitation to cancer survivors.
More than one lakh beneficiaries have been impacted with this ongoing pan-India program so
far. An initiative has been taken in collaboration with the Government of Assam, with the
objective to provide quality and affordable cancer care in Assam and surrounding states.
The Hon'ble Prime Minister Shri Narendra Modi inaugurated 7 hospitals on April 28, 2022 at
Dibrugarh, Assam, one of which was in the aspirational district of Darrang. Through this
initiative, more than 30,000 persons are screened annually for cancer. It also caters to
neighbouring districts of Nagaland, wherein around 20,000 persons annually visit for
diagnostic and another 2,000 visits for cancer care services. Below poverty patients will
be provided these services free of cost. BPCL is in partnership with District
Administration of Cachar, Assam, and Cachar Cancer Hospital & Research Centre. This
hospital is the only comprehensive cancer centre for treating various types of cancers and
is serving to impoverished communities from southern Assam, mainly from Cachar, Karimganj,
Hailakandhi, Dima Hasao districts, Tripura and Western parts of Manipur. Every year,
thousands of patients are provided with various cancer care services such as surgical
procedures, endoscopy, and palliative care.
BPCL has supported ultra-modern surgical equipment for operation theatres. With the
help of these equipment, the Operation Theatre (OT) infrastructure at the hospital has
been upgraded. Having been equipped with modern technologies, the hospital carries out
quality surgical interventions, which reduces human errors and ensures safety and better
treatment of the poor and needy patients.
BPCL is supporting 950 free online expert consultation services through ‘Navya'
platform to low income cancer patients to register and receive customized treatment plans
as per their need, based on their medical reports and any other constrains such as their
location, finances or physical condition.
BPCL, under its CSR initiatives, has enabled totally free-of-cost child heart surgeries
for needy children with congenital heart disease. BPCL has supported the cause by way of
providing critical medical equipment for the hospital in Mumbai and pledged to give new
life to additional 150 underprivileged children, who would be treated totally free of cost
at Sai Sanjeevani Hospitals in Haryana and Chhattisgarh. Overall, BPCL has enabled 9,000
paediatric cardiac surgeries. BPCL has supported 10 cardiac ambulances to Brihanmumbai
Municipal Corporation (BMC) for emergency and trauma care. BPCL is also running fully
functional hospitals at Kochi and Bina Refineries.
BPCL has joined hands with the Government of Gujarat for upgradation and modernisation
of the Human and Biological Science Gallery at Science City, Ahmedabad, Gujarat. BPCL has
also supported projects of national priorities like reconstruction and restoration of
Kedarnath and Badrinath towns and surrounding areas of Uttarakhand. BPCL has been
supporting the health care of inter-state labourers by providing medical care at their
doorsteps through the mobile health clinic ‘Bandhu'. Free diagnosis by Medical
practitioners, free medicines, support for follow-up treatments and awareness talks on
health and hygiene are the services provided. This year, the project has reached out to
over 15,000 labourers who work in various parts of the district. Reaching out to the
remote tribal settlements in Attappady, BPCL supported the construction of new maternity
and neonatal wards in the tribal hospital. The new facilities would improve access to
advanced maternity care and emergency care services to the tribal population at Attappady
and reduce infant deaths caused by preventable diseases.
Infrastructure and medical equipment to Government hospitals, palliative care centres
and personalized homecare for homebound patients were also among the various health
initiatives.
BPCL has provided facility of homeopathy and allopathy clinic for Mahul and Ambapada
residents. The clinic caters to various types of patients suffering from paediatric,
gynaecological, gastrointestinal, respiratory, skin, endocrine, cardiovascular, and kidney
conditions, etc. The project has been going on since 2014. Every year, approximately 5,000
to 6,000 persons have benefitted from the programme. BPCL has undertaken a host of
initiatives to contribute to nation-building. Project Lakshya provides training on
wrestling, chess and athletics through trainers to children in rural regions. A
‘Sports Summer Camp' was organized at Agasod village, in which nearly 300 children
from nearby villages participated. Project Samatva was initiated to conduct remedial
classes for slow learners from villages around Bina, in Madhya Pradesh, which focuses on
syllabus and prepares the students for admission by helping them achieve excellence in
competitive exams. Students from nearby villages were eligible to receive Government
scholarship after clearing the exams.
The initiatives organised by the Company in connection with Swachhata Pakhwada
observance from July 1-15,
2022 covered beneficiaries from multiple walks of life and resonated the messages of
Swachhata through multiple projects and initiatives, focusing on spreading awareness on
the dangers of one-time use of plastic and motivate people to move on to more sustainable
alternatives. The initiatives covered more than 25,000 activities, which will directly or
indirectly have lasting impact on more than one lakh people. Mission LiFE (Lifestyle for
Environment) is the mission for promoting awareness on seven themes to drive individuals
and communities to practice a lifestyle that is synchronous with nature. The theme is
driven through the activities in nearby communities, schools, within refineries and
township premises.
To commemorate 75 years of India's independence under
Azadi Ka Amrit Mahotsav (AKAM) celebrations, BPCL conducted 117 medical health camps
with emphasis of AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy),
across the length and breadth of the country with the objective of ensuring Jan Bhagidari
and outreach to every Indian. More than 15,000 beneficiaries were directly reached out to
under this programme. The "Har Ghar Tiranga" campaign was also undertaken under
AKAM to encourage people to bring the Tiranga home and to hoist it to mark the 75th
year of India's independence.
To celebrate the occasion, flags were provided to children in the nearby Government
schools, colleges and office premises. They were encouraged to hoist the flag in their
homes as well.
PromotioN oF sPorts
BPCL sportspersons continued to excel in national as well as international sports arena
in the year 2022-23.
The Company's sportspersons demonstrated exemplary vigour in the Commonwealth Games
(CWG) 2022 held at Birmingham, England. BPCL's promising star Sanil Shetty won the Gold
medal in Table Tennis team event. Adding to the glory, BPCL Hockey players Harmanpreet
Singh and Varun Kumar were part of the Indian Hockey Men's Team which bagged the Silver
medal in Commonwealth Games (CWG) 2022. Harmanpreet Singh and Varun Kumar were also part
of Hockey World Cup 2022 Team, which was held at Bhubaneshwar, wherein Harmanpreet Singh
led the team. Two more hockey players of the Company, Dipsan Tirkey and S. V. Sunil were
part of the Indian Hockey Men's Team which secured the Bronze medal in Asia Cup 2022 held
at Jakarta,
Indonesia. Exemplifying BPCL's indomitable spirit to contribute to the nation in the
sphere of sports, Tushar
Khandker, who is an ex-hockey player and an Olympian, undertook a special assignment as
assistant coach of the Indian Senior Women's Hockey Team for Women Hockey World Cup held
in Netherlands and Spain.
BPCL's Para-Badminton star performer, Manasi Joshi, was the proud recipient of the
Arjuna Award. Apart from securing Bronze medals in singles and mixed doubles events at
World Championship, she bagged 5 titles and
6 runners-up medals in singles, doubles and mixed doubles events in BWF Para-Badminton
World Circuit. BPCL employee, and Olympic Bronze Medalist Manoj Sarkar secured Bronze and
Silver medals in singles and doubles events, respectively at Spanish Para-Badminton
International 2022, Level 1. He also claimed the Bronze and
Gold medals in singles and doubles events, respectively at Spanish Para-Badminton
International 2022, Level 2. BPCL's ace archer Padma Shri Deepika Kumari won the Silver
medal in the Women's Recurve team event at Stage 3 of the Archery World Cup 2022 in Paris,
France. In Chess, Grand Master Abhijeet Gupta won the Gold Medal in International Graz
Open. In the World Para-Powerlifting Asia Oceania Championship held at Pyeongtaek, Korea,
Joby Mathew brought laurels to the nation by claiming 4 Gold medals, thus making history
in Men's 59 kg category.
In Cricket, Suryakumar Yadav continued his brilliant form and claimed the World No.1
spot in T-20 cricket. He also made his debut in Test Cricket against Australia in
Border-Gavaskar trophy series held at India. The Indian team that retained the trophy
after defeating Australia 2-1 in the 2023 series comprised three of the Company's players,
viz., Suryakumar Yadav, Shreyas Iyer, and Kuldeep Yadav. Furthermore, BPCL's star player
Rahul Tripathi made his debut for the Indian Cricket Team in T-20 Cricket in 2023.
As regards Billiards and Snooker, the year 2022-23 was indeed a remarkable year.
Continuing his brilliant form and characteristic blistering attack, S. Shrikrishna claimed
the Gold medal at World Six-Red and Team Snooker
Championships Malaysia 2022. Manan Chandra won the Silver medal in IBSF World Snooker
Championship 2022 (Masters).
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 (MoPNG),
Ministry of Social Justice and Empowerment and the
Department of Public Enterprises relating to reservations/ concessions for Scheduled
Castes, Scheduled Tribes, Other Backward Classes and Economically Weaker Sections. An
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 are
regularly inspected by Liaison Officer of the Company as well as Liaison Officer of MoPNG
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. BPCL zestfully
amalgamates persons with special abilities in its workforce. The Company complies with
provisions under ‘The Rights of Persons with Disabilities (RPwD) Act, 2016' relating
to providing equal employment opportunities for Persons with Disabilities (PWDs). BPCL has
also formulated an ‘Equal Opportunity Policy' and complies with the same.
Details relating to representation of SC/ST/OBC/EWS candidates and PWDs are appended as
Annexure C.
imPLemeNtAtioN oF oFFiciAL LANGUAGe PoLicY
In view of the Official Language Policy of the Government of India, business
requirements and by considering the needs of the customers, BPCL uses Hindi and other
Indian languages significantly for Official Language implementation. BPCL continues to
comply diligently with the Annual Programme 2022-23 issued by Department of
Official Language, Ministry of Home Affairs, Government of India, towards the
implementation of the official language across the Company. The progressive usage of Hindi
was reviewed and evaluated on quarterly, half yearly and yearly basis through essential
committees, viz., OLIC
(Official Language Implementation Committee), TOLIC (Town Official Language
Implementation Committee), etc. at different level such as regions, offices, locations,
and refineries.
The parliamentary committee carried out inspection in few BPCL offices, and appreciated
the efforts being taken by the Company for the implementation of the official language.
Hindi training and workshops on the Indic bilingual software, voice-typing, machine
translation, etc. were also organized for enhancing levels of compliance.
Various initiatives, including Hindi Fortnight/Week, celebration of notable days,
milestones, project, pledges of national importance, observance of World Hindi Day, Annual
Hindi Coordinators' Meet as well as various competitions, programmes, and culture
activities, were organized in Hindi from time to time, with wholehearted participation
from employees.
Like every year, several staff members took advantage of the Corporation's Official
Language Promotion Scheme this year. Additionally, as a part of promoting Hindi and
encouraging employees' children for greater adoption and use of Hindi, those who appeared
for the board exams this year were awarded Official Language prizes for outstanding
performance in ‘Hindi' subject for 10th and 12th classes.
BPCL was honored with the first Rajbhasha Protsahan Cup award by MOPNG for the
implementation of the official language. The award was presented by the Minister of
Petroleum and Natural Gas & Minister of Housing and Urban Affairs, Mr. Hardeep Singh
Puri. BPCL also received the prestigious "Saarvashresth Rajbhasha Karyanvayan
Puraskar" by Hon'ble Bhagat Singh Koshyari, Governor of Maharashtra. BPCL has also
well-deservedly received accolades and special appreciation from TOLIC at various
locations, including Chairman's Office, Western Regional Office, Kochi Refinery, State
Office Odisha and Panipat
Installation for emphatic implementation of Hindi.
citiZeN's chArter, PUbLic GrieVANce reDressAL (PG) & cUstomer cAre sYstem AND riGht
to iNFormAtioN (rti)
BPCL strongly believes that customers are the primary reason for its existence, and
therefore places them at the center of its business philosophy and operations as a part of
its corporate culture. In the present scenario of competitive and rapidly changing market,
excellence in customer service is the most important tool for sustained business growth,
building strong brand and nurturing relationship with the customer, for which BPCL is
always committed.
BPCL has constantly endeavored to set new benchmarks in customer service standards,
thereby meeting customer expectations by consistently offering convenience, services and
redressing their grievances, if any, through a well-defined mechanism.
citizen's charter
The concept of Citizens' Charter enshrines the trust between the service provider and
its users by ensuring responsiveness of the service provider in a transparent and
accountable manner. At BPCL, the internal processes are aligned to ensure that every
customer receives the best levels of service. The Citizen's Charter published on BPCL's
corporate website provides details of a range of services offered to our customers, with
an overview of the marketing activities of the Corporation, policy guidelines and
processes on marketing of petroleum products. It covers the mandate of the Corporation,
customer rights with respect to standards, quality, timeframe 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)
Public Grievance in BPCL is monitored through Centralized Public Grievance Redress and
Monitoring System (CPGRAMS) (https://www.pgportal.gov.in/), which is an online web-enabled
Portal developed by National Informatics Centre (NIC) and Department of Administrative
Reforms and Public Grievances (DARPG).
Grievances received from people through CPGRAMS system are centrally scrutinized at the
Corporate Level and sent for redressal to various Business Units/Entities through a
well-established online network. The process has an escalation matrix to ensure timely and
qualitative closure. BPCL, with its dedicated team, redressed and closed 4,156 grievances
(out of 4,234 grievances, i.e., 98.16%) with an average disposal time of only 12 days as
against the norm of 30 days fixed for disposal. BPCL has successfully closed 285 Appeals
out of 291 received on CPGRAM portal during the year 2022-23.
customer care system (ccs)
BPCL has a centralized Customer Care System (CCS), which is a single point of contact
for all BPCL customers on digital as well as non-digital platforms. SmartLine, BPCL's all
India toll-free contact centre for consumers, is a path-breaking initiative in the Indian
Oil and Gas industry, and since its launch in 2013, has connected with more than 81 lakh
customers.
CCS continues to be the first point of contact for
BPCL's ever-increasing customer base for all their queries and grievances. With a
strong team of more than hundred members and with latest Customer Relationship Management
(CRM) technology as its digital backbone, BPCL is able to service the customers much
better by creating a deeper understanding of the customer as well as by presenting a
unified interface to customers.
BPCL continues to strive to keep its customers safe and well taken care of with
increased use of technology and Artificial Intelligence (AI). Apart from redressal of
customer complaints, the data generated from CCS is used to improve customer service at
the grass-root level. ‘EK Call ........ Sab Solve' remains the guiding motto of CCS.
right to information (rti)
BPCL has been successfully complying with the requirements of 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 website
www.bharatpetroleum.in for better understanding of 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 at www.rtionline.gov.in, which is a
unified RTI portal of the Government of India.
From the year 2005 till March 31, 2023, the Company has successfully handled 50,666 RTI
applications, 7,275 First Appeals and 1,240 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 could be 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, Mumbai Refinery, Kochi and entities like HR and International
Trade, thereby ensuring smooth handling of RTI queries.
During the year 2022-23, BPCL received 2,570 RTI queries, 482 First Appeals and 113
Second Appeals (CIC Hearings) and all have been processed.
PUBLIC PROCUREMENT: MICRO & SMALL eNterPrises
BPCL's Central Procurement Organization (Marketing) [CPO (M)] procured goods and
services worth
Rs. 16,883.13 crore. This includes the company's requirement of Ethanol for blending
with petrol, purchases and contracts for LPG, Retail, Lube and Industrial & Commercial
business units (BUs) as well as for entities like Pipelines, Information Systems,
Engineering & Project, Human Resource Services (HRS) and New Businesses.
Additionally, tenders for disposal of scrap worth Rs. 321.02 crore were also finalized for
marketing locations. As part of Ethanol Blending Program of Government of India, CPO (M)
also anchored and finalized industry tenders of Ethanol amounting to
Rs. 39,657 crore for the 11th consecutive year. 100% of the tenders are
floated either through e-tendering mode or through Government e-Marketplace (GeM).
The Company registered a 115% rise in procurement of goods and services through GeM
during the year as compared to the previous year – from Rs. 1,078.33 crore to Rs.
2,318.52 crore.
The Company abides by the Public Procurement Policy for Micro and Small Enterprises
(MSE) Order 2012 and its subsequent amendments. During the year 2022-23, BPCL's total
procurement value of goods and services, excluding work contracts, where MSEs could have
participated was Rs. 8,736.65 Crore. The actual procurement value from MSEs was Rs.
3,203.02 Crore, i.e., an achievement of 36.66%, which exceeds the target of 25%. 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. BPCL conducted online vendor development programmes
for MSE SC/ST and MSE women, wherein over 200 vendors participated and benefitted from
detailed presentations by Asst. Director, MSME-
DI, Aurangabad on benefits of Public Procurement
Policy for MSEs. BPCL also participated in 8 MSME Vendor Development Programs organized
by Director
MSME, Maharashtra/MSME Development Institute in
Aurangabad, Nagpur, Mumbai, Kankavali and other locations. A "Premier Vendor
Workshop" was held during December 2022, wherein vendors of BPCL were invited and
their knowledge was enriched by various presentations on current and future business
requirements of BPCL as well as emerging technologies.
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 at the headquarters, regions and
refineries. The CVO acts as 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). The 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 (MoPNG). Annual and quarterly
performance reports are furnished to CVC and MoPNG of the work done on vigilance matters.
Vigilance in BPCL strives to enhance the ethical standards of the organization and
encourage good corporate governance through an effective balance of Punitive, Preventive
and Participative vigilance measures.
We have dedicated maximum resources this year in promoting Preventing Vigilance as a
primary tool. Raising awareness about good governance and ethical mindset has been
quintessential and therefore Vigilance has regular interactions with employees through
induction trainings and mid-career trainings. These sessions have aimed at enhancing
knowledge and awareness on the operational aspects of various circulars/guidelines/
SOPs issued by BPCL, CVC and MoPNG and common lapses committed. In all, 96 training
sessions were held, covering 2,526 persons during the year 2022-23. Punitive Vigilance for
commission of misconduct and other malpractices is certainly important vigilance function.
Investigation of complaints with specific reference to those having vigilance overtones
have been carried out diligently. The Vigilance function closely interacts with
Businesses/Entities to ensure all facets are covered while arriving at justified
conclusions of cases.
Emphasis was laid on early completion of investigations and concluding the same.
Vigilance took effective action on complaints with the purpose of safeguarding the
interests of stakeholders. Emphasis was laid on early completion of investigations and
concluding the same. A summary of investigative complaints handled by Vigilance during the
year 2022-23 is given below:
| opening balance (as on 01.04.2022) |
nvestigation during the Year |
total |
Disposed of during the Year |
closing balance (as on 31.03.2023) |
| 48 |
29 |
77 |
43 |
34 |
Vigilance Awareness Week with the theme ‘Corruption-Free India for a Developed
Nation' was observed across the country from October 31, 2022 to November 6, 2022. During
the week, a variety of programs were carried out across the country to spread the theme
and bring awareness amongst the stakeholders. viz., walkathon/ cyclathon, seminar/webinar,
school functions, vendor/ transporter/customer meet, Gram Panchayat events,
Integrity Jingle at retail outlets, etc.
In an effort to engage with all stakeholders within BPCL with an intention to
‘inform, educate and enroll', from this year the magazine ‘Vigilance Plus' was
released every quarter. sUbsiDiAries, JoiNt VeNtUres AND AssociAte comPANies
BPCL has 2 subsidiaries and 22 Joint Venture Companies and Associate Companies as on
March 31, 2023.
| Details of Company that has become a |
Nil |
| Subsidiary during the year 2022-23 |
|
| Details of Company that has become a Joint |
Nil |
| Venture/ Associate during the year 2022-23 |
|
| Details of Company that has ceased to be a |
2 |
| Subsidiary during the year 2022-23 |
|
| Details of Company that has ceased to be a Joint |
Nil |
| Venture/Associate during the year 2022-23 |
|
Pursuant to order of the Ministry of Corporate
Affairs dated June 22, 2022 and its subsequent filing with the respective Registrar of
Companies, Bharat
Oman Refineries Limited, which was a wholly owned subsidiary of BPCL, merged with BPCL
with effect from July 1, 2022.
Pursuant to order of the Ministry of Corporate Affairs dated August 8, 2022 and its
subsequent filing with the respective Registrar of Companies, Bharat Gas Resources
Limited, which was a wholly owned subsidiary of BPCL, merged with BPCL with effect from
August 16, 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 in 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: https://www. bharatpetroleum.in/images/files/Policy%20for%20%20
Material%20Subsidiaries.pdf bPcL sUbsiDiArY comPANies bhArAt PetroresoUrces LimiteD
(bPrL)
BPRL was incorporated in October 2006 as a 100% subsidiary of BPCL to undertake
upstream activities. As on March 31, 2023, BPCL's investment is Rs. 9,475 crore in the
equity capital of BPRL (apart from equity component of Rs. 126.37 crore recognised on fair
valuation of concessional rate loan given to BPRL). In addition to this, the Company has
given a loan of
Rs. 455 crore to this subsidiary. BPRL has recorded a consolidated income of Rs. 246.93
crore and a consolidated loss of Rs. 1,062.65 crore for the financial year ending March
31, 2023. BPRL has Participating Interest (PI) in 17 blocks, of which 8 are in India and 9
overseas, along with equity stake in two Russian entities holding the license to four
producing blocks in Russia. Five of the 8 blocks in India were acquired under different
rounds of New Exploration
Licensing Policy (NELP), one block was awarded under Discovered Small Fields (DSF) Bid
Round 1 and two blocks were awarded under the Open Acreage Licensing Policy (OALP) Bid
Round I. Out of 9 overseas blocks, 5 are in Brazil, 2 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 21,358 sq. km,
of which approximately 50% is offshore.
During the year 2022-23, out of BPRL's share of equity crude oil from Lower Zakum
Concession in UAE, approximately 4.4 million barrels of crude oil was lifted by BPCL group
refineries. In Ruwais Discovery in UAE, the drilling and testing of appraisal wells has
been completed and presence of hydrocarbons has been established. The final Field
Development Plan (FDP) for Ruwais discovery was submitted to the Regulator on October 4,
2022. Currently, Production Concession Agreement and Asset Usage Agreement are being
finalized in discussion with ADNOC.
In BM-SEAL-11 Concession in Brazil, subsequent to the Declaration of Commerciality
(DoC) in December 2021, the FDPs have been submitted to ANP (Brazilian Regulator) in
November 2022. The concessionaires are progressing towards procurement of Floating
Production
Storage Offloading(FPSO) unit and other long lead items for the project. 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 reestablishment 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. In order to
contribute to the stabilization of the livelihood of the communities in Northern Cabo
Delgado, the project has developed a comprehensive socio-economic initiative aimed at
generating revenues for the communities, developing the local economy, preserving the
biodiversity and promoting human rights. There has been an improvement in the security
situation, and the project is expected to restart after satisfactory assurances regarding
the security in Cabo Delgado province, the revised costs of the project and human rights.
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 2022-23, BPRL's share of
production from the block was 28 thousand tonnes of oil.
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)
Bharat Oman Refineries Ltd (BORL) was a subsidiary company of BPCL. Pursuant to order
of the Ministry of Corporate Affairs dated June 22, 2022 and its subsequent filing with
the respective Registrar of Companies, BORL has been merged with BPCL with effect from
July 1, 2022.
bhArAt GAs resoUrces LimiteD (bGrL)
Bharat Gas Resources Ltd. (BGRL) was a subsidiary company of BPCL. Pursuant to order of
the Ministry of Corporate Affairs dated August 8, 2022 and its subsequent filing with the
respective Registrar
Companies, BGRL has been merged with BPCL with effect from August 16, 2022.
bPcL-KiAL FUeL FArm PriVAte LimiteD (bKFFPL)
BKFFPL was incorporated in May 2015 with an equity participation of 74% by BPCL and 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
Aviation Turbine Fuel (ATF) on an exclusive basis. The fuel farm started operating from
December 2018, along with the commissioning of Kannur International Airport. As on March
31, 2023, the authorized share capital of the company is Rs. 50 crore and paid-up share
capital is
Rs. 9 crore. During the year 2022-23, the fuel throughput was 40,525.30 KL. The company
earned revenue from operations of Rs. 10.62 crore in the year 2022-23 and the profit
during the period wasRs. 0.99 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, 2023, the financialshave been consolidated as joint venture as per the
principles of Indian Accounting Standards.
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 share capital of Rs. 3,000 crore and paid-up share capital of
Rs. 1,500 crore. PLL was promoted by four public sector companies, viz., BPCL, Indian Oil
Corporation Limited (IOCL), Oil and Natural Gas Corporation Limited (ONGC) and GAIL
(India) Limited. Each of the promoters holds 12.5% of the equity capital of PLL. BPCL's
equity investment in PLL currently stands at Rs. 98.75 crore. PLL recorded consolidated
revenue from operations of
Rs. 59,899.35 crore during the year 2022-23, as against
Rs. 43,168.57 crore recorded in the year 2021-22. The consolidated profit for the year
stood at Rs. 3,325.82 crore, as compared to Rs. 3,438.12 crore during the year 2021-22.
The consolidated EPS for the year 2022-23 is Rs. 22.17, as compared to Rs. 22.92 in the
year 2021-22. During the year 2022-23, PLL recommended a final dividend of
Rs. 3.00 per share, in addition to special interim dividend of Rs. 7.00 per share
during the year. In the previous year, PLL had declared a special interim dividend of Rs.
7.00 per share and a final dividend ofRs. 4.50 per share.
i ND rAPrAsthA GAs LimiteD (iGL)
IGL is a joint venture company promoted by BPCL and GAIL and it was 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 and Greater Noida, Ghaziabad and Hapur,
Gurugram, Meerut (except areas already authorized), Shamli, Muzaffarnagar, Karnal,
Rewari, Kanpur (except areas already authorized), Hamirpur-Fatehpur districts, Kaithal,
Ajmer, Pali, Rajsamand, 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 81 new Compressed Natural Gas (CNG)
stations and 3.10 lakh new Piped Natural Gas (PNG) domestic connections during the year.
As on March 31, 2023, IGL has 792 CNG stations and 23.70 lakh PNG domestic connections.
IGL has registered revenue from operations of Rs. 15,603.02 crore and profit of Rs.
1,639.65 crore for the year ending March 31, 2023, as compared to revenue from operations
of Rs. 8,484.73 crore and profit of Rs. 1,502.27 crore in the previous year. The EPS for
the year stood at Rs. 23.42, as against Rs. 21.46 in the year 2021-22. The IGL Board
declared an interim dividend of Rs. 13 per share during the year. In the previous year,
IGL had declared a final dividend of Rs. 5.50 per share.
sAbArmAti GAs LimiteD (sGL)
SGL, a joint venture company promoted by BPCL and Gujarat State Petroleum Corporation
(GSPC), was incorporated in June 2006 with an authorized share capital of Rs. 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, 2023, BPCL has a stake of 49.94% in the equity capital of
SGL. SGL has set up 161 CNG stations and is supplying PNG (Domestic) to 2.69 lakh
customers. During the year 2022-23, the company commissioned 3 CNG stations. SGL achieved
a turnover of Rs. 2,383.84 crore and profit of Rs. 322.00 crore for the year ending March
31, 2023, as against Rs. 1,900.46 crore and Rs. 346.48 crore, respectively for the
previous year. The EPS for the year stood at Rs. 161.00 as against
Rs. 173.24 in the year 2021-22. The company declared an interim dividend of Rs. 60 per
share during the year. In the previous year, SGL had declared a final dividend of Rs. 40
per share.
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 has an authorized share
capital of Rs. 60 crore as on March 31, 2023. 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, 2023, CUGL has 85 CNG stations. CUGL has achieved
revenue from operations of Rs. 746.91 crore and profit of Rs. 85.36 crore for the year
ending March 31, 2023, as against Rs. 509.49 crore and Rs. 118.83 crore, respectively, for
the previous year. The EPS for the year stood at Rs. 14.23, as against
Rs. 19.80 in the year 2021-22. The company recommended a final dividend of Rs. 4.10 per
share for the year 2022-23. In the previous year, CUGL had declared an interim dividend of
Rs. 1.00 per share and a finaldividend of Rs. 3.00 per share.
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 share 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 Nashik GA and Sindhudurg GA in Maharashtra and
Ramanagara GA in the state of Karnataka, which were awarded by Petroleum and Natural Gas
Regulatory Board (PNGRB) under the 9th CGD Bidding Round. MNGL has achieved an
average sales of 1.24 million metric standard cubic meters per Day (MMSCMD) in the year
2022-23, resulting in a stupendous volume growth of over 25% w.r.t. the previous year. The
company has commenced sales in the GA of Buldhana, Nanded and Parbhani districts in
Maharashtra and Nizamabad, Adilabad, Nirmal, Mancherial, as well as Kumuram Bheem Asifabad
and Kamareddy districts in Telangana, secured under 11th Round within the first
year. Within less than one year of commissioning India's largest LNG-LCNG
Station at Nashik, it is the first and only such LNG-LCNG station in India to
consistently achieve a throughput of 1,00,000 standard cubic meters per day (SCMD), which
is highest in India for any CGD entity. MNGL has set up 202 CNG stations and is supplying
PNG (Domestic) to 6.90 lakh customers. MNGL has achieved revenue from operations of Rs.
2700.19 crore and profit of
Rs. 421.09 crore for the year ending March 31, 2023, as against revenue of Rs. 1,381.41
crore and profit of Rs. 332.62 crore, respectively, in the previous year. The EPS for the
year 2022-23 stood at Rs. 42.13, as against Rs. 33.26 in the year 2021-22. The MNGL Board
recommended a final dividend of Rs. 12 per share for the year, as against Rs. 10 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. As on March 31, 2023, the authorized share capital of the company is Rs. 90
crore and paid-up share capital is Rs. 44.40 crore. Additionally, the company has received
share application money of Rs. 42.76 crore on a Rights issue, which was pending for
allotment as on March 31, 2023. HNGPL received Rs. 30 crore inter-corporate loan from the
joint venture partners in the year 2020-21, against which the principal amount of Rs.
22.50 crore is outstanding as on March 31,2023.
The five-year Minimum Work Programme (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, 2023, the company has provided 25,000 domestic connections and laid around
1,348-inch-km pipeline. Further, the company has set up 7 CNG stations. HNGPL achieved
revenue from operations of Rs. 91.74 crore and profit
Rs. 2.27 crore for the year ending March 31, 2023, as against a revenue of Rs. 45.76
crore and profit ofRs. 3.34 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. 80 crore as on March 31, 2023 and
the promoters have infused Rs. 40 crore each towards equity as on March 31, 2023. The
company has already achieved its five-year MWP target of providing
9,588 domestic connections and laying 650-inch-km pipeline. As on March 31, 2023, the
company has provided gas to 3432 domestic connection and laid around 692.35-inch-km
pipeline in the North Goa GA. Further, the company has commissioned 7 CNG Stations in
North Goa and is supplying gas to 14 commercial and 23 industrial PNG customers. GNGPL
achieved revenue from operations of Rs. 78.98 crore and profit of Rs. 1.78 crore for the
year ending March 31,
2023, as against a revenue of Rs. 36.17 crore and profit of Rs. 0.20 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 Rs. 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
in2008.BSSPLhasnowincreaseditsfootprintsatdifferent 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 58 locations in India. BSSPL has achieved a
consolidated revenue from operations of
Rs. 63.78 crore and a consolidated profit of Rs. 2.72 crore for the financial year
ending March 31, 2023, as against a consolidated revenue from operations of Rs. 37.59
crore and a consolidated loss of Rs. 5.12 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. Setting up of Aviation Hydrant
System at the T1 terminal of Delhi International Airport is on the verge of completion.
The authorized and paid-up share capital of the company is Rs. 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 achieved revenue from
operations of
Rs. 86.50 crore and profit of Rs. 23.09 crore for the year ending on March 31, 2023, as
against revenue of Rs. 72.19 crore and net loss of Rs. 5.33 crore, respectively, during
the previous year. The EPS for the year stood at Rs. 1.41, as against Rs. (0.33) in the
year 2021-22. The company recommended an interim dividend of Rs. 0.43 per share and final
dividend of Rs. 0.98 per share for the year, as against nil dividend during the previous
year.
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.
The facility is 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 12.12 lakh KL during the year 2022-23, which is an
increase of 62% from 7.47 lakh KL during the previous year. The increase is due to
continuing recovery in the aviation sector on account of containment of COVID-19 and
lifting of travel restrictions worldwide. MAFFFL achieved revenue from operations of
Rs. 110.31 crore and profit of Rs. 32.01 crore for the year ending on March 31, 2023 as
against revenue of Rs. 59.90 crore and profit of Rs. 9.58 crore, respectively, during the
previous year. EPS for the year 2022-23 stood at Rs. 1.51, as against Rs. 0.45 in the year
2021-22.
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, as well as the flourishing business community and
tourists. The authorised share capital of the company is Rs. 3,500 crore and the paid-up
share capital of the company as on March 31, 2023 is Rs. 1,338.39 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 2022-23, total
aircraft movements were 11,939 and passenger traffic was approximately
12.46 lakh, as against 9,761 aircraft movements and approximate passenger traffic of
8.03 lakh in the previous year. This increase in air traffic movement compared to the
previous year corresponds to a recovery of more than 22% compared to the 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 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 Ltd 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 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 and is in the process of commencing liquidation. 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
final stages of winding up of its branch office. MXB reported a loss of USD 0.04 million
for the year ending December 31, 2022, as against a loss of USD 0.03 million for the year
ending December 31, 2021.
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, 2023, BPCL has paid an amount of Rs. 560.64
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 152.3 km 12-inch 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 2022-23, 184.92 TMT of LPG was
transported through this pipeline, as against a quantity of 132.51 TMT in the year
2021-22. With respect to the 152.3 km pipeline from BPCL-KR DT to Palakkad RT, the
pipeline laying has been completed for 152.28 km, and the overall physical progress
achieved as on March 31, 2023 is 98%. The second phase is a 38.6-km 12-inch pipeline from
Puthuvypeen IOCL import terminal to KR. The overall physical progress achieved for this
section is 95%. 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. 80% of
Detailed Engineering Survey is completed and the process of obtaining crossing permissions
is underway for the third phase of the pipeline from Palakkad RT to Coimbatore RT. With
respect to the fourth phase of the pipeline from Coimbatore RT to Salem RT, activities for
route survey and for obtaining along/crossing permissions are in progress.
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 the 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 the 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 2022-23, the company transported approximately 586 MMSCM of gas, as
against 444 MMSCM in the previous year. GITL has reported revenue from operations of Rs.
103.71 crore and a loss of Rs. 11.85 crore for the year ending March 31, 2023, as against
revenue from operations of Rs. 84.90 crore and loss of Rs. 155.56 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-Bathinda Pipeline (MBPL) and Bathinda-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,
covering 837 KMs out of 940 KMs except Section V (Punjab). During the year 2022-23, the
company has transported about 1246.26 MMSCM of gas, as against approximately 1,328.56
MMSCM in the previous year. GIGL has reported revenue from operations of Rs. 212.80 crore
and loss of Rs. 158.36 crore for the year ending March 31, 2023, as against revenue from
operations of Rs. 228.47 crore and profit of Rs. 73.36 crore in the previous year.
FiNo PAYtech LimiteD (FiNo)
BPCL acquired shares in FINO in the year 2016-17. As on March 31, 2023, BPCL has made
an investment of
Rs. 260.17 crore and holds 21.10% 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 a 75% share.
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 Rs. 0.16 crore. During the year 2018-19, shareholders of the
company 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 share 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 Allahabad High Court (Lucknow Bench) for winding up BREL. By the judgement dated
December 21, 2015, the company was ordered to be wound up and an Official Liquidator 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 the Hon'ble Allahabad High Court. A reply to the report submitted
by the OL has been given and the matter is pending in the Hon'ble Allahabad High Court.
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 this project along with IOCL, BPCL and HPCL. The allocation of land for
the project has been delayed. 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 company 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 to 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 will cater to the LPG requirement of 22 LPG bottling plants of IOCL,
HPCL and BPCL located in the afore-mentioned States. The Kandla-Gorakhpur Pipeline would
connect and meet the requirement of 7 LPG bottling plants of BPCL situated at Hariyala,
Indore, Bhopal, Jhansi, Kanpur, Allahabad, and Gorakhpur. The approved total cost of the
KGPL project was Rs. 10,088 crore, while Rs. 4,892.66 crore have been incurred till March
31, 2023 under the project. As on March 31, 2023, BPCL has made equity contribution of Rs.
764.50 crore. The overall progress achieved for the KGPL Project as on March 31, 2023 is
75.28%. The scheduled completion date of the KGPL project was December 2021, which was
revised by PNGRB to December 2022 in view of the COVID-19 pandemic. PNGRB has further
revised the project scheduled completion date to December 31, 2023.
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 to provide LPG connections to women hailing from economically
weaker sections and who are not getting covered under the Pradhan Mantri Ujjwala Yojana.
Subsequently, various schemes have been announced by the Government of India, with an
objective to expand the coverage/usage of LPG by the economically underprivileged sections
of the country. Since the core purpose of UPF is getting fulfilled by way of various
Government schemes announced from time to time, no major activity has been undertaken
under UPF.
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 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 2022-23 with
MoPNG. An MoU for the year 2023-24 is under finalization. The Company has achieved
"Excellent" performance rating for MoU 2021-22, with a composite score of
91.66%.
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 (MoPNG) 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 2022-23 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 under 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 Auditors' Certificate on
compliance of Corporate Governance, 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 AND sUstAiNAbiLitY 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 and
Sustainability Report describing the initiatives implemented by the Company from the
environmental, social and governance (ESG) perspective is appended as part of the Annual
Report.
trANsActioN With reLAteD PArties
During the year 2022-23, the Company has entered into contracts or arrangements with
related parties, which were in the ordinary course of business and on an arm's length
basis.
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.
The Policy on related party transactions 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 Audit Committee and Board
evaluate the Company's internal financial controls and risk management procedures.
The Company has implemented a Risk Management Charter and Policy for self-regulatory
processes and procedures to ensure that company operations are conducted in such a manner
which ensure that risks are continually managed.
Accordingly, the Company has adopted an Enterprise Risk Management Policy, a Commodity
Risk Management Policy and a 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 on
March 31, 2023, 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 2022-23:
Shri Harshadkumar P. Shah ceased to be a Director of the Company w.e.f. July 16, 2022
on completion of his tenure. Shri Gudey Srinivas, Government Director, who was appointed
as Director by shareholders by way of Postal Ballot w.e.f. April 17, 2022, ceased to be a
Director of the Company w.e.f. September 26, 2022.
Shri Arun Kumar Singh, Chairman & Managing Director superannuated at the close of
office hours onOctober 31, 2022.
Smt. Yatinder Prasad, Government Director, who was appointed as an Additional Director
of the Company w.e.f. October 29, 2022, ceased to be Director of the Company w.e.f.
December 20, 2022.
Shri Sanjay Khanna, Director (Refineries), Shri Suman
Billa, Government Director were appointed as Directors by the shareholders by way of
Postal Ballot w.e.f. April 17, 2022. Further, Shri Pradeep Vishambhar Agrawal, Shri
Ghanshyam Sher, Dr (Smt) Aiswarya Biswal, Prof (Dr) Bhagwati Prasad Saraswat, Shri Gopal
Krishan Agarwal, Independent Directors, were appointed as Independent Directors by
shareholders by way of Postal Ballot w.e.f. April 17, 2022.
Shri Sukhmal Kumar Jain, Director (Marketing), was appointed as an Additional Director
of the Company w.e.f. August 22, 2022 as communicated by Ministry of Petroleum &
Natural Gas and being
Additional Director, held office up to the date of the last Annual General Meeting held
on August 29, 2022. He was again re-appointed as Additional Director by the Board at the
meeting held on August 29, 2022. He was further appointed as Director (Marketing) by
shareholders by way of Postal Ballot w.e.f. November 16, 2022.
Smt. Kamini Chauhan Ratan, Additional Secretary & Financial Advisor, Ministry of
Petroleum and Natural Gas, was appointed as an Additional Director of the Company w.e.f.
December 21, 2022. She was further appointed as Director by shareholders by way of Postal
Ballot w.e.f. March 18, 2023 Shri Vetsa Ramakrishna Gupta, Director (Finance) took
additional charge of Chairman & Managing Director w.e.f. November 1, 2022 to March 17,
2023. He also held additional charge of Director (Human Resources) w.e.f. January 1, 2022
to April 30, 2023. Dr (Smt) Sushma Agarwal, Independent Director, was appointed as an
Additional Director of the Company w.e.f. March 10, 2023. Shri Krishnakumar Gopalan was
appointed as an Additional Director of the Company and as Chairman & Managing Director
w.e.f. March 17, 2023.
Shri Rajkumar Dubey, Director (Human Resources), was appointed as an Additional
Director of the Company w.e.f. May 1, 2023. The above referred Additional Directors will
hold office till the ensuing Annual General Meeting
(AGM). Notice under Section 160 of the Act has been received proposing their respective
name for the appointment as Director at the ensuing AGM. Shri Sanjay Khanna will retire by
rotation at the ensuing AGM as per the provisions of Section 152 of the Act and being
eligible has offered his candidature for reappointment as Director at the said meeting. As
required under the Corporate Governance Clause, brief bio-data of the above Directors who
are appointed/ reappointed at the AGM are 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%20Programmes.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 a 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 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 this
mechanism are disclosed at the Company's web link https://www.
bharatpetroleum.in/images/files/Whistle%20Blower%20 Policy%20final.pdf
NUmber oF meetiNGs oF the boArD AND committees oF the boArD
Fifteen 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 SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
ANNUAL retUrN
As required under Section 92 (3) of the Companies Act, 2013, the Annual Return of the
Company for the year 2022-23 is available on the Company website at the following link:
https://www.bharatpetroleum.in/ Bharat-Petroleum-For/Investors/Shareholders-Meetings/
Annual-General-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
The Comptroller & Auditor General of India (C&AG), under the provisions of
Section 139(5) of the Companies
Act, 2013, had appointed M/s Kalyaniwalla and Mistry LLP, Chartered Accountants, Mumbai
and M/s K.S. Aiyar
& Co, Chartered Accountants, Mumbai, as Statutory Auditors for the year 2022-23.
These appointed auditors 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 2023-24. The Auditors' Report for the year 2022-23 does not contain any
qualification, reservation or adverse remark.
rePortiNG oF FrAUDs bY AUDitors
The Auditors have not reported any instance of fraud under Sub-section (12) of Section
143 of Companies Act, 2013.
ost 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 2022-23. The Cost Audit Report for the year
2021-22 was filed with the Ministry of
Corporate Affairs before due date in XBRL Format.
The Cost Auditors for the year 2021-22 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
2022-23. 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 2022-23. The Secretarial Audit
Report for the year ended
March 31, 2023 is appended as Annexure I to this Report.
The Secretarial Audit Report does not contain any observations 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.
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, one (1) complaint of sexual harassment was received against a contract worker,
which has been closed as the contract worker was terminated by the contractor. No
complaint was pending at the end of the financial year.
The Committee has worked extensively on creating awareness on the relevance of sexual
harassment issues.
Apart from the workshops conducted for employees of the organization, it is ensured
that a session on Prevention of
Sexual harassment at Workplace (POSH) is included as part of Induction Training of all
new recruits.
AcKNoWLeDGemeNts
The Directors express their appreciation for the untiring, dedicated and focused
efforts of each and every employee. Their passion and resolute steadfastness to pursue the
goals and ambitions of the Company have put the Company ahead of the curve.
It is with deep gratitude that the Directors acknowledge the support and guidance
received from various Ministries of the Government of India, especially the Ministry of
Petroleum & Natural Gas, and from various
State Governments, which has helped/facilitated the
Company take on new challenges in its stride with great confidence.
The Company's laser-sharp customer-centric approach to business and prioritization of
innovation has yielded the trust and unflinching support of our business partners and
shareholders, allowing us to dream even bigger. The Directors are proud of the Company's
human capital and acknowledge its vital role in the continued success of the Company.
India is on an unparalleled growth trajectory, and it has an even more enchanting future
ahead of it. Realizing this immense potential, the Directors are bullish on India as the
Company accelerates its journey towards an exciting future.
| For and on behalf of the Board of Directors |
| Sd/- |
| Krishnakumar Gopalan |
| Chairman & Managing Director |
| Place: Mumbai |
| Date: August 2, 2023 |
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