DEAR MEMBERS,
On behalf of the Board of Directors, it gives me immense pleasure in presenting this Report on the performance of your Corporation for the financial year ended March 31,2022.
The year 2021-22 has been remarkable with world economies recovering back strongly from the lows of COVID-19 Pandemic on improved vaccine coverage and ability of man-kind to raise up to challenges. The energy consumption, a key indicator of economic activity staged a smart comeback with consumption gradually moving towards pre-pandemic levels.
Your Corporation reported its highest ever Annual sales revenue of Rs.3,72,642 Crore, a remarkable growth of 38% with a Profit after Tax of Rs.6,383 Crore and in its exciting journey, accumulated several prestigious awards during the year including "Oil Marketing Company of the Year" for second consecutive year.
HIGHLIGHTS
(Rs./Crore) | ||||
Consolidated |
Standalone |
|||
2021-22 | 2020-21 | 2021-22 | 2020-21 | |
FINANCIAL PERFORMANCE | ||||
Sales/Income from Operation | 3,72,867.94 | 2,69,493.69 | 3,72,641.60 | 2,69,242.86 |
Earnings before Interest, Tax, Depreciation & Amortization and Exceptional items | 14,141.30 | 18,785.75 | 13,145.54 | 18,714.17 |
Depreciation & Amortization Expenses | (4,000.36) | (3,625.47) | (3,969.1 1) | (3,552.65) |
Finance Cost | (997.32) | (963.28) | (972.73) | (914.73) |
Profit before Tax (PBT) | 9,143.62 | 14,197.00 | 8,203.70 | 14,246.79 |
Tax Expenses | (1,849.39) | (3,534.11) | (1,821.07) | (3,582.91) |
Profit after Tax (PAT) | 7,294.23 | 10,662.89 | 6,382.63 | 10,663.88 |
Balance brought forward from previous financial year | 36,068.83 | 27,485.23 | 34,271.39 | 25,394.07 |
Amount available for Appropriation | ||||
Appropriations/ Others: | ||||
Debenture Redemption Reserve (net) | (2.11) | (33.84) | - | - |
Dividend | (3,227.20) | (1,485.72) | (3,227.20) | (1,485.72) |
Other Comprehensive Income that will not be reclassified to profit or loss(net of tax) | 132.27 | (88.95) | 129.55 | (92.23) |
Utilisation for shares buy-back | (932.39) | (208.61) | (932.39) | (208.61) |
Other Appropriations | (33.47) | (262.17) | (33.47) | - |
Balance carried forward | 39,300.16 | 36,068.83 | 36,590.51 | 34,271.39 |
SHAREHOLDERS VALUE (K) | ||||
Earnings per Share | 51.36 | 70.57 | 44.94 | 70.57 |
Cash Earnings per Share | 83.24 | 94.21 | 76.40 | 94.06 |
Book Value per Share | 291.88 | 262.26 | 272.65 | 249.21 |
PHYSICAL PERFORMANCE (MMT) | 2021-22 | 2020-21 |
Market Sales (including Exports)# | 39.14 | 36.59 |
Crude Thruput: | ||
Mumbai Refinery | 5.56 | 7.37 |
Visakh Refinery | 8.41 | 9.05 |
Total Crude Thruput | 13.97 | 16.42 |
# As per Ind AS |
SALES/INCOME FROM OPERATIONS
Your Corporation has achieved Sales/Income from Operations of Rs.3,72,641.60 Crore in the financial year 202122 as compared to Rs.2,69,242.86 Crore in the financial year 2020-21 on a standalone basis.
PROFIT
Your Corporation has reported Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) of Rs.13,145.54 Crore in the financial year 2021-22 as against Rs.18,714.17 Crore in the financial year 2020-21 and Profit after Tax of Rs.6,382.63 Crore in the financial year 2021-22 as compared to Rs.10,663.88 Crore in the financial year 2020-21 on a standalone basis.
DIVIDEND
The Board of Directors, after taking into account the Financial Results of the Corporation during the financial year, have recommended a final dividend of Rs.14 per share for the financial year 2021-22 as compared to Rs.22.75 per share for the financial year 2020-21. The amount of final dividend as recommended by the Board totaling to Rs.1,985.97 Crore will be paid out of profits earned for the financial year.
INTERNAL RESOURCES GENERATION
Your Corporation has generated Internal Resources (net of dividend payout) of Rs.7,622.63 Crore during the financial year 2021-22 as compared to Rs.12,727.53 Crore during the financial year 2020-21 on a standalone basis.
CONTRIBUTION TO EXCHEQUER
Your Corporation has contributed a sum of Rs.85,745.58 Crore to the exchequer during the financial year 2021-22 by way of duties and taxes, as compared to Rs.95,332.94 Crore during the financial year 2020-21 on a standalone basis.
REFINERY PERFORMANCE
FY 2021-22 witnessed your Corporations Mumbai refinery enhancing its crude processing capacity from 7.5 MMTPA to 9.5 MMTPA by successfully and safely executing a very complex revamp of major processing units as part of the Mumbai Refinery Expansion Project (MREP) in spite of challenges posed by multiple waves of COVID-19 pandemic. The project included battery limit and flare shutdown for integration of the new units with the existing units, commissioning of New Vacuum Pipe Still (NVPS) and New Hydrogen Generation Unit (NHGU), revamp of Fuel Refinery Atmospheric Pipe Still (FR APS), Motor Spirit (MS) block and Diesel Hydrotreating Units (DHT). The revamp involved precise planning and significant work across various discipline like civil, structural, piping, electrical, equipment replacement/modification etc. Various stakeholders such as employees, contractors, OEM representatives, licensor consultants and PMC engineers were involved during various stages of the project. Post stabilization of newly commissioned units, Mumbai Refinery registered highest monthly and quarterly crude thruput in the month of January 2022 and Q4 of FY 2021-22 respectively.
FY 2021-22 also witnessed your Corporations Visakh refinery delivering robust physical performance by recording capacity utilization of more than 100%. Visakh Refinery Modernization Project (VRMP) to enhance crude processing capacity from 8.3 MMTPA to 15.0 MMTPA is progressing well and mechanical completion for units have commenced in a phased manner. Implementation of Residue Upgradation Facility (RUF) is also progressing well. A major milestone of erection of 3 nos. LC Max Reactors and 2 nos. of Hydrotreater (HDT) Reactors was achieved during the year. This includes erection of worlds heaviest De-Asphalted Oil (DAO) LC Max reactor which weighs in excess of 2200 MT.
Towards augmentation of storage infrastructure and enhancement of flexibility for product handling, Mumbai refinery commissioned new tanks at MR-II facility and implemented Naphtha and MTO loading facility ex Mahul terminal. Visakh refinery achieved mechanical completion for Tankage-B package and as part of Sagarmala project at Oil Wharf, commissioned Bitumen shipping line to OR-III jetty during the year.
During the FY 2021-22 refineries registered combined refining throughput of 13.97 MMT as compared to 16.42 MMT during the previous year. Combined capacity utilization of refineries was about 88.4%. A planned shutdown of Mumbai refinery was undertaken in Q1 of FY 2021-22 for implementation of the revamp project.
Environmental protection continues be a top priority for refineries. Mumbai refinery continued to source more than 70% of its power requirement from the grid. Visakh refinery executed project for connecting refinery power grid to 220KV as part of VRMP.
Your Corporation is in the process of developing a validated roadmap with the help of a world-renowned consultant to achieve net zero Scope 1 and 2 emissions by the year 2040. Your Corporation was the first Oil Marketing Company to place an order for Electrolyser to produce Green Hydrogen. A 2.6 MW Electrolyser will be installed in Visakh Refinery to produce 370 TPA of Green Hydrogen.
To further enhance refining capacity, a new 9 MMTPA grass root Refinery cum Petrochemical Complex is being setup by HPCL Rajasthan Refinery Limited (HRRL), a joint venture company between HPCL and Government of Rajasthan at Pachpadra in Barmer District of Rajasthan. HRRL has achieved significant progress during the FY 2021-22 in spite of several constraints posed by the COVID-19 pandemic. Construction of various facilities such as warehouse, boundary wall, bund wall, major roads and water reservoir for construction purpose etc., have been completed. Purchase Orders for key Long Lead Items (LLIs) have been placed. Engineering, Procurement and Construction activities of key process units and Lump Sum Turn Key (LSTK) packages for various utilities and associated facilities are progressing well.
The particulars with respect to conservation of energy, technology absorption, imported technology, research & development expenditure, foreign exchange earnings & outgo are furnished in Annexure I. The particulars relating to control of pollution and other initiatives by refineries are furnished in Annexure II.
OPERATING PERFORMANCE OF REFINERIES
Parameter | Unit | Mumbai Refinery | Visakh Refinery |
Crude Thruput | TMT | 5,558 | 8,410 |
Capacity utilization | % | 74.1 | 101.3 |
Distillate yield | % | 70.4 | 70.7 |
Fuel & Loss | % | 8.33 | 8.09 |
Specific Energy | MBTU/ | 106.7 | 85.0 |
Consumption | BBL/ NRGF | ||
Gross Refinery Margin | $/BBL | 7.60 | 6.92 |
MARKETING PERFORMANCE
Recording a sale of 39.14 MMT, including exports (FY2020- 21: 36.59 MMT), your Corporation has performed excellently during FY 2021-22. In the domestic segment, your Corporation recorded a volume of 37.42 Million Tonnes (2020-21: 35.24 MMT) with a growth of 6.1% over previous year and achieved a market share of about 20.9% amongst public sector Oil Marketing Companies (OMCs). This significant feat was achieved notwithstanding the economic turbulence during the year, challenges associated with the two COVID-19 waves and the geo-political conflict leading to demand destruction and soaring crude prices.
In the motor-fuel segment, your Corporation achieved a sales volume of 22.9 MMT in FY 2021-22 with a market share gain of 0.09% on a Total Motor Fuels on industry basis (PSU + Private). During the year, 1391 Retail Outlets were commissioned (taking the total to 20,025) and 273 Door- to-Door Mobile Dispensers were commissioned, totalling to 660 nos. Not just conventional fuels, your Corporation is also at the forefront in meeting alternate fuels requirement and providing more options to customers. CNG facilities have been provided at 413 outlets during FY 2021-22 taking the total to 1087 outlets and EV Charging Facilities are now available at 1011 Retail Outlets. Thus, your Corporation achieved the triple milestone of crossing 20,000 mark in numbers of Retail Outlets and 1000 outlets mark each offering CNG and EV Charging facilities during the year. To enhance customer satisfaction, the HPCL-ICICI Super Saver card was launched. In-house HP Pay wallet has been integrated with WhatsApp wherein basic features of LPG booking, paycode generation etc. have been enabled. "Instafuel", a new video analytics based vehicle identification system coupled with preset functionality in the HP Pay App, has been successfully implemented to provide faster, convenient and 100% contactless payments at retail outlets.
All these significant efforts have resulted in achieving 42.7% of the total collections through digital modes in Total Motor Fuels (TMF) sales in the month of March 2022. During the year, Retail SBU of your Corporation forayed into nonfuel retailing by launching branded store Club HP "HaPpy Shop" at retail outlets. Further, own branded packaged drinking water under the brand name "Paani@Club HP" was also launched.
In the LPG business vertical, your Corporation set a new record in FY2021-22 with sales of 7.7 MMT, recording a growth of 4.4% over the previous year. HP Gas has enrolled over 39 lakh new customers during the year which includes 25 lakhs customers under Pradhan Mantri Ujjwala Yojna (PMUY 2.0). To meet the rising demand in North East India, a 30 TMTPA Bottling plant was commissioned at Goalpara, the first HPCL bottling plant in the State of Assam. Your Corporation has commissioned the 120 TMTPA capacity LPG Plant at Gonda, Uttar Pradesh and an additional 5.5 TMT of LPG Mounded Storage Vessels at various locations. In the FTL sales segment, your Corporation could further boost HP Gas market dominance by selling over 4.4 million APPU cylinders in package sizes of 5 kg and 2 kg, thereby maintaining its leadership in this segment with a market share of 45%. HP Gas also recorded the highest ever Bulk LPG sales of 272 TMT during the year. Enhancing its offerings to customers, your Corporation launched specially formulated LPG for fishing Trawlers, branded as HP Gas Dolphin. Continuing the focus on the safety aspects of Gas stoves in household, your Corporation launched the Smart Knob which ensures automatic closure of knob in case of flame failure in LPG Gas stoves. LPG Gas stove with higher thermal efficiency was also launched during the year. In addition to all leading platforms, HP Gas is now also available on WhatsApp, enabling customers to avail LPG related services through smart Chatbot. These customer centric initiatives helped HP Gas in recording the highest- ever digital transaction of 39.2% in March 2022.
In the Lubricants segment, your Corporation recorded an overall sales volume of over 545 TMT during the year overcoming various constraints including availability of product supplies pursuant to planned turnaround of Lube Refinery at Mumbai. Your Corporation achieved the highest ever growth of 35% in the export segment of additized Lubricants, achieving an overall export volume of 8.1 TMT lubricants across 12 countries. The commercial production and sales of Diesel Exhaust Fluid (DEF) was scaled up, recording highest ever sales of more than 20 TMT during the year. Digitalization opened up new opportunities for cost optimization and improved delivery of services. Your Corporation strengthened and widened the geographical reach of its marketing network by adding 14 new Channel Partners through online mode. The continued focus on Original Engine/Equipment Manufacturers (OEMs) was maintained which enabled improved participation & renewal of partnerships. During the year, Lube R&D at Mumbai was amalgamated with HPCL Green R&D Centre, Bengaluru with additional facilities bringing in better synergy and resource optimization.
In the Industrial & Consumer (I&C) business line, your Corporation recorded overall sales of 4.8 MMT. The strategy of maximizing volumes in 3 focus products helped to cross 1 MMT sales in Furnace Oil, Diesel and Bitumen individually for the seventh consecutive year. Highest-ever sales were also achieved in Hexane and Jute Batching Oil during the year. Your Corporation commenced High Sulphur Fuel Oil (HSFO) bunkering for scrubber fitted vessels at major ports. Your Corporation launched a new 26KG polybag of Bitumen under the brand "HP TUFFBIT" in order to create differentiation and better positioning to meet the customer requirements. Infrastructure continues to be the key strength of your Corporation in delivering products efficiently and at competitive price to the customers. During the year, rake loading facilities for Mineral Turpentine Oil and Tank truck loading facilities for Naphtha has been commissioned at Mahul Terminal in Mumbai.
In the Aviation business, your Corporation achieved sales volume of 520 TMT of Aviation Turbine Fuel against 398 TMT recorded in the previous year. Aviation network is strengthened with the commissioning of a new Aviation Service Fuel facility (ASF) at Rupsi under the Regional Connectivity Scheme taking the total no. of ASFs to 47. Your Corporation has improved its presence in Defense Sector by adding 5 Indian Air Force (IAF) locations thereby taking the number of IAF locations to 7. From 1st April 2022, HP Aviation is operational at 52 locations across the country.
In the Gas business, your Corporation has marketed 223 TMT of Natural Gas thus becoming a significant player in this segment. Your Corporation is building City Gas Distribution (CGD) networks in 10 Geographical Areas (GAs) in 4 States (Haryana, Uttar Pradesh, Uttarakhand and West Bengal). First City Gate Station and Mother Station were commissioned in Jind Sonipat GA during the year. Your Corporation commissioned 79 new Compressed Natural Gas (CNG) Stations during the year taking the total number of CNG stations in HPCL authorized GAs to 142. CGD pipeline network of 1643 inch-km pipeline has been added and 20,225 new PNG connections have been released during the year. Domestic PNG supply has commenced in 3 Cites under 3 GAs namely Haldwani, Shahjahapur and Gohana. Industrial PNG supply also commenced in Barhi Industrial Area in Jind-Sonipat GA. Further, your Corporation has been awarded the authorization of Dausa, Karauli, Sawai Madhopur & Tonk Geographical Area by PNGRB in the 11th round of CGD bidding. Your Corporation is building 5 MMTPA LNG Regasification Terminal at Chhara, Gir Somnath District, Gujarat through HPCL LNG Limited, a 100% subsidiary company. The work is progressing well at site and it is slated to be commissioned during FY 2022-23 as per schedule. Your Corporation has entered into longterm gas sourcing contract from ultra-deep-water fields in KG Basin. Your Corporation is also scouting to source LNG at competitive price from International Market to meet its captive and marketing requirement.
Supplies, Operations and Distribution (SOD) SBU of your Corporation is instrumental for efficient supply chain management and for last-mile delivery. Your Corporation achieved a thruput of 50 MMT during the year due to efficient and optimal supply chain management across the country. A new POL Depot at Hissar (Haryana) has been commissioned along with 10 km dedicated tap-off pipeline from the existing Ramanmandi - Bahadurgarh Pipeline (RBPL) at Barwala which has further optimized logistic costs & strengthened the supply infrastructure. During the year, your Corporation converted 11 more locations as SMART terminals taking the total to 60 which has resulted in enhanced operational and cost efficiencies. Further, 11 locations have been converted to an Electro Mechanical Locking system taking the total to 57 POL locations with EM locking.
In the Pipeline vertical, your Corporation is currently operating a petroleum product pipeline network of 3,775 km with a mainline capacity of 32.55 MMTPA and branch line capacity of 15.57 MMTPA. During FY 2021-22, total pipeline thruput of 19.9 MMT was recorded against the previous year thruput of 19.1 MMT including LPG thruput of 1.57 MMT. Your Corporation is further expanding the pipeline network and capacities for enhanced logistic efficiencies and associated environmental benefits. The major ongoing pipeline infrastructure projects include
(i) Extension of VVSPL from Vijayawada to Dharmapuri and construction of marketing terminal at Dharmapuri
(ii) Hassan Cherlapally LPG Pipeline
(iii) Barmer Palanpur Pipeline and
(iv) Bathinda Sangrur Pipeline. These pipeline projects are expected to increase pipeline capacity to over 40 MMTPA and network length to about 5,400 kilometres, thus significantly strengthening your Corporations position in key markets. Your Corporation has also teamed up with IOCL and BPCL in the development of Indias longest LPG pipeline from Kandla to Gorakhpur (2,757 km) through a joint venture route.
Towards environmental protection and energy security of the nation, your Corporation is promoting biofuels in the transportation sector. During FY 2021-22, your Corporation has blended 95.07 Crore Litres of Ethanol and achieved an overall 9.03% EBP (i.e. Ethanol Blended Petrol) which is the highest amongst OMCs. Also, your Corporation is the first amongst OMCs to achieve Ethanol blending in all States/ UTs in India and dispatched Indias 1st Ethanol Rake on 10th August 2021 from Loni to Kadapa. In order to strengthen biofuel infrastructure, your Corporation is constructing a Second Generation Ethanol bio-refinery at Bathinda, Punjab with 100 KLPD Ethanol production capacity, and a Compressed Biogas (CBG) production plant of 14.25 TPD capacity at Badaun, Uttar Pradesh. Both projects are expected to be commissioned during FY 2022-23.
Your Corporation is leveraging Renewable energy sources to reduce the carbon footprints and electricity cost across the value chain and is continuously expanding the wind and solar power generation capacities. During FY 2021-22, your Corporation has installed captive solar power capacity of 10.06 MWp across various locations, taking the total solar power capacity to 54 MWp as of 31st March, 2022.
Your Corporation has also set up wind power capacity of 100.90 MW, which generated about 18.84 Crore KWh of electricity during FY 2021-22.
TREASURY MANAGEMENT
The challenges posed by COVID-19 pandemic continued during the financial year 2021-22 with second wave of pandemic resulting into cash flows turning volatile, affecting the working capital requirements of your Corporation. With ample liquidity in the system supported by RBI and relatively moderate interest rates, your Corporation could tide over the situation and the required funding needs could be fulfilled by borrowing at competitive rates.
The long-term requirements to fund the Capex was met through a mix of instruments including Non-convertible debentures for different tenors, aggregating to Rs.3,450 Crore and External Commercial Borrowings amounting to US$ 550 million. Diversifying its borrowing basket, your Corporation also raised first-ever T-Bill linked floating rate Rupee Term Loan from a bank to the tune of Rs.2,500 Crore.
Your Corporation effectively used a variety of borrowing instruments to optimize its cost of working capital. The short-term borrowing requirements were met through Triparty Repo Dealing System, Commercial Papers, Buyers Credit and Revolving Line of Credit in USD and Working capital facility from Consortium banks.
As of March 2022, your Corporation commands international long term issuer rating of "Baa3" with "Stable" outlook from Moodys Investors Services, and "BBB-" with "Negative" outlook from Fitch Ratings. Subsequently, in June 2022, Fitch Ratings has revised their outlook to "Stable". Both ratings are at par with sovereign rating.
Your Corporation continues to command highest domestic rating for long term ("AAA" with "Stable" outlook) and short term ("A1+") facilities from CRISIL, India Rating and Research Limited and ICRA.
INTERNAL FINANCIAL CONTROLS
Your Corporation has adequate Internal Financial Controls for ensuring the orderly and efficient conduct of its business including adherence to the Corporations policies; the safeguarding of its assets; the prevention and detection of frauds and errors; the accuracy and completeness of the accounting records and the timely preparation of reliable information, commensurate with the operation of your Corporation. As part of this exercise, the design of internal controls and its operating effectiveness for the key business processes is tested by external consultant who observed that there are no material weaknesses in Internal Controls over Financial Reporting.
RISK MANAGEMENT POLICY
Your Corporation recognizes that all aspects of its businesses involve significant risk and that with the evolving regulatory landscape there is an increased exposure to a greater scrutiny by the public, regulators, investors, and its stakeholders. Risk Management is focused at ensuring that these risks are known and addressed through a pragmatic and effective Risk Management process.
Keeping attune with todays VUCA (Volatile, Uncertain, Complex and Ambiguous) world and regulatory requirements in relation to Risk Management, your Corporation has reviewed and revised its Enterprise Risk Management (ERM) framework under the Corporations Risk Management Charter and Policy, which is embedded at the forefront of business strategies and focuses on the stronger, deeper and trust-based relationship with the stakeholders.
The Risk Management Charter and Policy is built on the established principles of sound risk management which enables not only management of the existing risks but anticipates emerging risks and deploys mitigating strategies on a continuous basis. It provides necessary support to the business to steer through the continuously evolving risk terrain through dynamic risk management approach that embraces disruption and enhances resiliency and trust. The pandemic and uncertainty in the last two years has stricken communities across the globe. The rapid geographical spread (and multiple variants) of this virus has caught the world off-guard, with major implications for personal health, business continuity and the world economic order. Your Corporation has not only reviewed the risks arising out of this pandemic and but also suitably included new risks, as well as, amended existing risks with mitigating strategies in place. The Risk Management Committee (RMC) receives regular insights on risk exposures faced by the organization, thereby enabling it to provide inputs on prompt actions to be taken as well as monitor the actions taken. The Board is also updated regularly on the risk assessment and mitigation procedures. Keeping with leading global best practices, technology remains at the forefront to support the Enterprise Risk Management processes with a focus on optimizing risk exposures and automating risk reporting across the organization.
VIGILANCE
The Vigilance mechanism in your Corporation is based on the directives issued by the Central Vigilance Commission (CVC), Department of Personnel & Training (DoPT) and Ministry of Petroleum & Natural Gas (MoP&NG) from time to time.
The Vigilance Department is headed by the Chief Vigilance Officer (CVO) who administers supervision and control of all the Vigilance matters in the Corporation. Vigilance Department carries out focused preventive vigilance activities which help in ensuring transparent business decisions by respective Departments.
Apart from conducting preventive vigilance activities, the major work areas of Vigilance comprise of investigation of complaints received from various sources like Citizens, Stakeholders, Ministry of Petroleum & Natural Gas, Central Vigilance Commission, the Management and other sources etc.
The Vigilance Department deals mainly with matters related to corruption and matters having vigilance angle. The complaints are handled as per the complaint handling policy stipulated in the Vigilance Manual 2021 of the Central Vigilance Commission. There were 398 cases disposed of during the FY 2021-22 and 30 cases are pending as of 31 .03.2022. These cases relate to retail outlet selection, retail outlet operations, LPG distributorship selection, LPG distributorship operations, tendering, transportation, depot/plant operations etc.
Various operating areas were reviewed for systemic improvements during the year. Apart from investigating complaints, surprise inspections of Depots, Terminals, LPG Plants, Regional Offices, LPG Distributors, Retail Outlets, Tank Trucks, Major Works (CTE Patten), Tender Review etc. were carried out. Various focused group-training programs were conducted for employees.
Vigilance Awareness Week was observed under the central theme for the year "Independent India @ 75: Self Reliance with Integrity". Various outreach activities viz., focused group presentations, Quizzes, Drawing/ Painting Competitions, Skits/ street plays, Workshops, Technical talks, Grievance redressal camps/ Awareness Gram Sabhas, Rallies/ Walkathons, School/ College Programs etc. were undertaken during the week.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
Your Corporation, being a Government Company is subjected to the CVC Guidelines and the Corporation has a separate Vigilance Department administering the Vigilance matters. Your Corporation has a Whistle Blower Policy approved by the Board and the same is placed on the website of the Corporation. The web link of Whistle Blower Policy is stated herein below:
Web link: https://www.hindustanpetroleum.com/documents/ pdf/Whistle Blower Policy.pdf
RIGHT TO INFORMATION (RTI)
Your Corporation being a public authority has a structured mechanism in place to deal with matters related to the RTI Act in line with the provisions under the Right to Information Act, 2005. Your Corporation has aligned with the Online RTI portal of DoPT (Department of Personnel & Training), Government of India and all applications/appeals received through the portal are handled through the portal itself, including the physical applications. The mandatory reports such as Quarterly/Annual reports are submitted periodically within the stipulated timelines on to the website of the Central Information Commission www.cic.gov.in. Further, all the relevant details along with suo-motu disclosures under Section 4(1)(b) of the Act, have been hosted on the corporate website www.hindustanpetroleum.in for better transparency and understanding of the public at large.
Your Corporation has designated a Nodal Officer at its Headquarters Office to coordinate and oversee the implementation. The RTI applications are addressed within the stipulated time period of 30 days, through the Online RTI portal www.rtionline.gov.in. A team of 225 Central Public Information Officers (CPIO) and 44 First Appellate Authorities(FAA) spread across the country, covering Refineries and major SBUs like Retail, LPG, HR functions such as Recruitment, etc. ensured smooth handling of RTI applications received, despite the pandemic and associated issues of lockdown, postal delays, etc.
During the FY 2021-22, your Corporation has successfully handled and processed 3094 RTI applications, 360 First Appeals and 57 Second appeals [CIC (Central Information Commission) Hearings]. All the 57 CIC Hearings were held virtually, without the physical presence of CPIOs and detailed Written Submissions were submitted to Honble CIC for all the Hearings well within time to enable CIC to pass awards.
INDUSTRIAL RELATIONS
Your Corporation has continued to enjoy excellent Employee Relations during the year with no reported instance of industrial unrest at any of its operating locations. Your Corporation lays great emphasis on continually engaging, enabling and empowering its stakeholders through a variety of interventions. As our Nation is celebrating Azadi Ka Amrit Mahotsav to commemorate 75 years of it independence, with a view to ensure that the objectives of various Labour enactments are met and towards becoming a model employer, the Corporation as a Model employer, observed "Labour Law - Statutory Compliance Fortnight" across all its locations during 14th February, 2022 to 28th February, 2022 which was a huge success. Your Corporation also ensured that the arrears of the Long Term Settlement (LTS) which was concluded for its workmen across all Divisions were disbursed both for serving and retired employees.
In order to mitigate and lessen the impact of COVID-19, your Corporation continued with coverage under the Special Medical Insurance Scheme, Group Personal Accident Insurance, Special Ex-gratia scheme of frontline COVID-19 warriors viz. the contract labourers, LPG delivery-men, retail outlet forecourt salesmen, transport crew, security guards etc., during the financial year.
OFFICIAL LANGUAGE IMPLEMENTATION
The usage of Hindi is ensured in the business of your Corporation by motivating the employees through persuasion, incentive and harmony and Hindi is being promoted by utilizing various facilities available in the field of Information & Technology including Video Conferencing. To promote the linguistic talent of the employees, awareness about Hindi is created in the offices through online Hindi competition, Hindi fortnight, official language conferences and Hindi workshops etc.
During the year FY 2021-22, your Corporation was conferred with Rajbhasha Kirti First Prize for implementation of official language for the year 2020-21 and also Rajbhasja Kirti First Prize for its Hindi House Journal "HP Samachar" for the year 2018-19 by Government of India, Department of Official Language, Ministry of Home Affairs. Your Corporation is coordinating Town Official Language Implementation Committee of Mumbai based PSUs since 1983 and thereby guiding Mumbai based 65 PSUs in the field of Official Language Implementation. Other than the TOLIC Meetings, your Corporation has trained the officials of different PSUs through conducting various programs such as Hindi Translation, Promotion of Hindi and Regional Language etc.
Your Corporation had continuously been awarded with the Official Language Shield, The Best amongst Oil PSUs, by Ministry of Petroleum and Natural Gas, Government of India. Your Corporation has maintained its record in entire Oil Industry by receiving 53 Rajbhasha Awards from Government of India and other Agencies.
CORPORATE SOCIAL RESPONSIBILITY
Your Corporation implemented various activities under the focus areas of Childcare, Education, Health Care, Skill Development, Sports and Environment & Community Development.
As a responsible Corporate, your Corporation collaborated with various stakeholders to mitigate the challenges posed due to the outbreak of COVID-19 pandemic. Your Corporation took various COVID-19 relief initiatives like Supply and Installation of PSA Oxygen Generation Plants in various states, Operation & Maintenance of COVID-19 Care Centres and Contribution to Prime Ministers Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund). The other relief measures such as Installation of Medical Ventilators, Distribution of Oxygen Concentrators, Medical Oxygen Cylinders along with provision of safety kits were also carried out.
During the year, under Project ADAPT, your Corporation endeavored to enhance the quality of lives of Children with Disabilities (CWD) through provision of online education, individual training and online therapeutic treatment.
Under Project Nanhi Kali, girls were provided with online as well as physical remedial classes, material kits, sports curriculum training and counselling on personal hygiene and career development.
Basis the success of previous batch of students, your Corporation continued its collaboration with Indian Army for Project Kashmir Super-50 Medical. Under the project, aspiring students from Jammu & Kashmir valley are provided mentoring and coaching for medical stream. This year witnessed addition of 20 day scholar girl students in the project.
Your Corporation started new Project Ladakh Ignited Minds in Leh which supports the less-privileged, but ambitious students of Ladakh region to compete in various academic streams like engineering, medical and other career-oriented programs.
To provide basic healthcare facilities in remote rural locations, mobile medical vans were supported as part of Project Dhanwantari. Under Project Dil without Bill, support has been extended for conducting heart surgeries of beneficiaries from lower economic section with special focus on children.
Your Corporation supported 6 Skill Development Institutes (SDI) conceptualized by Government of India and operationalized by Oil & Gas CPSEs focused on imparting skills in industry-oriented trades for improving employability of weaker sections of the society. One of the SDI at Visakhapatnam is being managed by your Corporation.
During Swachhta Pakhwada (1st - 15th July, 2021) campaign, your Corporation carried out focused activities to support fight against COVID-19 pandemic by distributing Swachhta Kits, administering e-Swachhta Shapath and conducting virtual and on-ground sensitization campaigns on theme of spreading awareness on COVID-19 appropriate behaviour.
Your Corporation augmented the Healthcare facilities at various district hospitals and primary healthcare centers. Certain basic facilities in various schools were also provided for the benefit of students. Contribution was also made to the Armed Forces Flag Day Fund for the care, support, welfare and rehabilitation schemes for ex-Servicemen (ESM) and their dependents.
Awards & Accolades in CSR
Swachhta Awards
Your Corporation bagged prestigious Award for Swachhta Pakhwada campaign (1st - 15th July, 2021) instituted by Ministry of Petroleum and Natural Gas and Ministry of Drinking Water and Sanitation.
FICCI CSR Awards 2021
Your Corporation was conferred with 19th FICCI CSR Awards for CSR Project Kashmir Super-30 (Medical). FICCI carried out initial screening, thereafter, academicians conducted online field assessment. Finally, an independent jury comprising of prominent Industry leaders made the selection of award winners.
FICCI: India@75: Chemical and Petrochemical Industry Awards
Your Corporation was conferred winner of FICCI award for Excellence in CSR in Petrochemicals (Public Sector).
The details of CSR activities of the Corporation containing details of CSR Committee Members, brief outline of the CSR policy, overview of the CSR initiatives, prescribed expenditure, amount spent etc. that form part of this Report are furnished in Annexure III.
CORPORATE GOVERNANCE
Your Corporation continues to adopt the best practices of Corporate Governance to ensure transparency, integrity and accountability in its functioning. The Corporate Governance Report highlighting these endeavours has been incorporated as a separate section that form part of the Annual Report for FY 2021-22.
PROCUREMENT OF GOODS & SERVICES FROM MSEs
The Government of India has notified a Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 and its amendments thereof. In line with the said Policy, your Corporation had set an annual goal of sourcing a minimum procurement of 25% of its total requirements from MSEs and within it, 4% of total requirement has been earmarked for procurement from MSEs, owned by SC/ST entrepreneurs and another 3%, from women entrepreneurs. For the benefit of MSEs, the MSE procurement details are regularly uploaded on Sambandh Portal of Ministry of MSME, besides displaying the Annual Procurement Plan on the Corporations website.
Against the above set target for FY 2021-22, your Corporation has achieved 37.29% (H 4,257.58 Crore) of procurement of goods & services from MSEs excluding items which are beyond the scope of MSEs. The excluded items are Crude Oil, Petroleum Products, logistics cost through shipping, Railways & Pipelines, LNG/Natural Gas, API Line pipes, OEM spares & services, proprietary items and services, Technology Licenses and Licensor mandated items, Plant & Machinery and single item value equal to or more than Rs.50 Crore. To promote the objectives of procurement from MSEs as laid down in Public Procurement Policy, 52 Vendor Development Programs/ Buyer-Supplier meet for MSEs were conducted during the financial year. During these meets, the Corporations procurement processes were articulated through detailed presentation to MSE vendors with an intent to increase awareness of vendor registration process, tendering process, availability of TReDS platform, procurement on GeM platform etc. Implementation of various Government directives/policies of providing relief to MSMEs and promoting indigenisation of products and services were also explained during these programs.
Your Corporation is registered with TReDS Digital platform, an institutional mechanism set up by Reserve Bank of India, to facilitate the trade receivable financing of Micro Small and Medium Enterprises (MSMEs) from corporate buyers through multiple financiers. Integrating its ERP System with that of 3 of the service providers, namely; A.Treds Ltd., Mynd Solutions Pvt. Ltd. and Receivables Exchange of India Ltd., the Corporation has enabled the MSMEs to auction their trade receivables at competitive rates through online bidding by financiers. Numerous MSME vendors have on-boarded this platform and benefitted with the bill discounting facility that provides liquidity.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
Your Corporation has ensured compliance with various provisions under The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. To inculcate appropriate workplace behaviour and promote gender sensitization, your Corporation mandated all its executive employees to undergo awareness sessions through online courses and workshops conducted on the subject. Internal Complaint Committee (ICC) of the Corporation were reconstituted and detailed guidelines on procedures relating to the functioning of the ICC were circulated.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
Management Discussion & Analysis Report forms part of the Annual Report for FY 2021-22.
FINANCIAL STATEMENTS OF SUBSIDIARIES
In terms of Proviso to Section 136(1) of the Companies Act, 2013, your Corporation will place separate audited Financial Statements in respect of each of its Subsidiary Company on its website and also provide a copy of separate audited Financial Statements in respect of each of its Subsidiary Companies to any Shareholder of the Corporation who seeks the same. The Financial Statements of the Subsidiary Companies will also be kept open for inspection at the registered offices of the Corporation/respective Subsidiary Companies.
Pursuant to provisions of Section 129(3) of the Companies Act, 2013, a separate statement containing salient features of the Financial Statements of Subsidiary/Associate/Joint Venture Companies in Form AOC-1 is attached along with the Consolidated Financial Statements.
COST AUDIT
The maintenance of Cost Records, as specified under Section 148(1) of the Companies Act, 2013 is mandated and accordingly such accounts and records are made and maintained. The Cost Audit for FY 2020-21 was carried out and the Cost Audit Reports were filed with the Ministry of Corporate Affairs within the stipulated time for filing.
DIRECTORS
Your Corporations Board presently comprises 10 Directors. The Whole Time Directors are Shri Pushp Kumar Joshi, Chairman & Managing Director, Shri Vinod S Shenoy, Director - Refineries and Shri Rajneesh Narang, Director - Finance.
The Government Nominee Directors are Shri Sunil Kumar, ex-officio, Joint Secretary (Refineries), Ministry of Petroleum & Natural Gas and Shri Pankaj Kumar, Director (Offshore), ONGC.
The Independent Directors are Smt. Vimla Pradhan, Shri Bechan Lal, Shri Vivekananda Biswal, Shri Ramdarshan Singh Pal and Dr. Nagaraja Bhalki.
As per the provisions of Section 152 of the Companies Act, Shri Vinod S Shenoy is the Director who is liable to retire by rotation at the next Annual General Meeting and being eligible offers himself for re-appointment.
DETAILS OF CHANGES IN DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP) DURING FY 2021-22 AND TILL DATE
A) Directors
• Shri Subhash Kumar, Government Nominee Director (Representative of ONGC) has resigned from the Board of the Company effective May 20, 2021.
• Dr. Alka Mittal, was appointed as Government Nominee Director (Representative of ONGC) on the Board of your Company effective June 17, 2021.
• Shri R Kesavan, Director - Finance (Whole Time Director) has ceased to be Director of your Company effective July 01 , 2021 on attaining the age of superannuation.
• Smt. Vimla Pradhan, Shri Bechan Lal, Shri Vivekananda Biswal, Shri Ramdarshan Singh Pal were appointed as Independent Directors on the Board of your Company effective November 16, 2021.
• Dr. Nagaraja Bhalki was appointed as an Independent Director on the Board of your Company effective December 30, 2021.
• Dr. Alka Mittal, Government Nominee Director (Representative of ONGC) has resigned from the Board of the Company effective January 5, 2022.
• Shri Rajneesh Narang was appointed as Director - Finance (Whole Time Director) on the Board of your Company effective March 22, 2022.
• Shri Rakesh Misri, Director - Marketing (Whole Time Director) has ceased to be Director of your Company effective April 01, 2022 on attaining the age of superannuation.
• Shri Mukesh Kumar Surana, Chairman & Managing Director (Whole Time Director) has ceased to be Director of your Company effective May 01, 2022 on attaining the age of superannuation.
• Shri Pankaj Kumar, Director (Offshore) ONGC, was appointed as Government Director of the Company effective June 22, 2022.
• Shri G Rajendran Pillai has ceased to be an Independent Director of the Company effective July 15, 2022 on completion of tenure of office of 3 years on July 14, 2022.
B) KMP
• Shri R Kesavan, Director - Finance (Whole Time Director) and CFO of your Company has ceased to be CFO of the Company effective July 01,2021.
• Shri Rajneesh Narang, Executive Director - Corporate Finance of the Company was appointed as Chief Financial Officer (CFO) of the Company effective July 01,2021.
C) Resignation of a Director who resigns from his office by giving a notice in writing to the Company
• Shri Subhash Kumar, Part-Time Director Representative of ONGC has ceased to be Director with effect from May 20, 2021.
• Dr. Alka Mittal, Part-Time Director Representative of ONGC has ceased to be Director with effect from January 05, 2022.
NUMBER OF MEETINGS OF THE BOARD
During FY 2021-22, 12 Board Meetings were held. The details of these Meetings are given in the Corporate Governance Report for the financial year.
MANAGERIAL REMUNERATION
By virtue of MCA Notification dated 5th June 2015, Government Companies are exempted from complying with the requirement of Section 197 (Chapter XIII) of the Companies Act, 2013. Hence, the Rules made thereunder i.e. Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is also not applicable to Government Companies.
PERFORMANCE EVALUATION OF BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS
Your Corporation being a Government Company, the compliance of Section 134(3)(p) is exempted by virtue of MCA Notification dated 5th June 2015 as the annual evaluation of the performance of the Board, its Committees and of Individual Directors are carried out by the Administrative Ministry i.e. Ministry of Petroleum and Natural Gas (MOP&NG).
DECLARATION BY INDEPENDENT DIRECTORS
Statement of declarations as required under Section 149(7) of the Companies Act, 2013 & Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 have been obtained from the Independent Directors.
POLICY FOR SELECTION AND APPOINTMENT OF DIRECTORS AND THEIR REMUNERATION
Your Corporation, being a Government Company is exempted to furnish information under Section 134(3)(e) of the Companies Act, 2013 vide MCA Notification dated 05/06/2015.
OPINION OF BOARD REGARDING INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING THE PROFICIENCY) OF THE INDEPENDENT DIRECTOR APPOINTED DURING THE YEAR
Your Corporation, being a Government Company, all the Directors including Independent Directors are appointed by Government of India.
Independent Directors are selected by search committee constituted by Government of India from mix of eminent personalities having requisite expertise and experience in diverse fields.
During FY 2021-22, 5 Independent Directors were appointed on the Board. These Directors have registered themselves with Independent Directors Databank maintained by Indian Institute of Corporate Affairs (IICA) of Ministry of Corporate Affairs. Out of 5 Independent Directors, Shri Vivekananda Biswal is exempted from undergoing Online Proficiency Test based on fulfillment of exemption criteria. The other 4 Directors can undergo test within a period of 2 years from the date of their inclusion of names in the Independent Directors databank.
POLICY FOR REMUNERATION OF KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
Your Corporation, being a Government Company, the remuneration payable to Key Managerial Persons and other employees are fixed by the Government of India. However, payment like Performance Related Pay is placed for the approval of Nomination and Remuneration Committee.
AUDIT COMMITTEE
The present composition of Audit Committee, which requires reporting under Section 177(8) of the Companies Act, 2013 is given as under:
Sl. No. | Name | Category |
1 | Shri Bechan Lal | Independent Director - Chairman |
2 | Shri Vivekananda Biswal | Independent Director - Member |
3 | Shri Ramdarshan Singh Pal | Independent Director - Member |
The changes in the composition of Audit Committee during the Financial Year 2021-22 and till date are:
• Shri Subhash Kumar, Part-Time Director Representative of ONGC on the Board of the Company and Member of the Audit Committee effective October 01st, 2020 had held this post till he ceased to be Director of the Company effective May 20, 2021.
• Shri R Kesavan, Director-Finance on the Board of the Company and Member of the Audit Committee effective September 23, 2019 had held this post till he ceased to be Director of the Company effective July 01,2021.
• Shri Sunil Kumar, Ex-Officio Director on the Board of the Company and Member of the Audit Committee effective October 01, 2020 had held this post till he ceased to be Member of the Audit Committee of the Company effective November 30, 2021.
• Dr. Alka Mittal, Part-Time Director Representative of ONGC on the Board of the Company and Member of the Audit Committee effective July 28, 2021 had held this post till she ceased to be Member of the Audit Committee of the Company effective November 30, 2021.
• Shri Bechan Lal & Shri Vivekananda Biswal were inducted into the Committee as Members effective November 30, 2021. Shri Bechan Lal was subsequently appointed as Chairman of the Audit Committee effective July 15, 2022.
• Shri G Rajendran Pillai, Independent Director of the Company and Chairman of the Audit Committee effective October 01, 2020 had held this post till he ceased to be Director of the Company effective July 15, 2022.
• Shri Ramdarshan Singh Pal was inducted into the Committee as Member effective July 15, 2022.
During the year, there were no cases observed where Board had not accepted the recommendations of Audit Committee. The recommendations of Audit Committee are broadly accepted by the Board.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has appointed M/s. Ragini Chokshi & Co., a firm of Practicing Company Secretaries to undertake Secretarial Audit of the Company for the Financial Year 2021-2022. The Report of Secretarial Auditor in Form No. MR-3 is annexed herewith and marked as Annexure IV.
The Report does not contain qualification, reservation or adverse remark except the following:
• The Company could not comply with requirement of having optimum combination of executive and nonexecutive Directors and not less than fifty percent of the Board of Directors as non-executive Directors and having at least one independent woman director on the Board from April 01,2021 to November 15, 2021;
• The Company could not comply with the requirement of having at least half of the Board of Directors as Independent Director from April 01,2021 to December 29, 2021;
• The Company could not comply with the requirement of having at least two-thirds of the members of Audit Committee as Independent Directors as the Committee was having only one Independent Director as a member during the period from April 01,2021 to November 29, 2021;
• The Company could not comply with the requirement of having at least 50% (this requirement was later on amended to two-thirds effective January 01, 2022) of the Directors as Independent Directors in Nomination and Remuneration Committee from April 01, 2021 to November 29, 2021 and the requirement of having at least three members from May 21,2021 to July 27, 2021.
In this regard, your Company confirms that being a Government Company, which is under the Administrative Control of Ministry of Petroleum and Natural Gas (MOP&NG), the power to appoint Directors (including Independent Directors) and finalizing the terms and conditions of appointment vest with Government of India. The matter regarding appointment of required number of Independent Directors/Independent Woman Director have been taken up with MOP&NG from time to time and the Government is seized of the matter.
It may be noted that during the Quarter ended December 31, 2021, Government of India appointed 5 Independent Directors including 1 Woman Independent Director on the Board of the Company. This has resulted in compliance with all the above requirements of SEBI LODR, Regulations, 2015.
COMPLIANCE WITH APPLICABLE SECRETARIAL STANDARDS
Your Corporation has complied with applicable Secretarial Standards in respect of Meetings of Board of Directors (SS- 1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India (ICSI).
C&AG AUDIT
C&AGs comment upon or supplement to the Statutory Auditors Report on the Accounts for the year ended 31st March, 2022 is attached along with Financial Statements. Further, as at 31 March, 2022, there are 6 pending paras related to the C&AG audit. These relate to encashment of Earned Leave/Half Pay leave/Sick Leave as well as Employers share of EPF contribution on leave encashment; non-recovery of perquisite tax; payment of shift allowance to executives; payment of stagnation reliefs; non-recovery of dues in a case of bank guarantee, not encashed; additional expenditures due to non - utilisation of pipeline in economical manner. The audit observations have been suitably replied.
RELATED PARTY TRANSACTIONS
The details of transactions entered into with the Related Parties during the financial year 2021-22 in Form No. AOC-2 is annexed herewith and marked as Annexure V.
WEB LINK OF ANNUAL RETURN
The Web link of Annual Return (MGT-7) is https://www.hindustanpetroleum.com/AGMDetails
PARTICULARS OF EMPLOYEES
The details regarding the number of women employees visa-vis the total number of employees is given herein under:
Group | Total No. of Employees | No. of Women Employees | % of Women Employees |
Management | 6018 | 736 | 12.23% |
Non-Management | 3047 | 186 | 6.10% |
TOTAL | 9065 | 922 | 10.17% |
REPORTING OF FRAUDS BY AUDITORS
During the year under review, Auditors has not reported to the Audit Committee (under Section 143 (12) of the Companies Act, 2013) any instances of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Boards report.
DETAILS OF EACH OF THE FRAUD REPORTED TO THE AUDIT COMMITTEE OR THE BOARD DURING THE YEAR
NIL
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 form part of the Notes to the financial statements provided in this Annual Report.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THE FINANCIAL YEAR AND DATE OF THE REPORT
There have been no material changes and commitments which affect the financial position of the Corporation that have occurred between the end of the financial year to which the financial statements relate and the date of this report.
DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR
NIL
DETAILS OF DIFFERENCE BETWEEN THE AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF
There has not been any instance of one-time settlement done with banks/financial institutions during the financial year.
PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
The details on the performance and financial position of Subsidiary, Associate and Joint Venture Companies are given in Management Discussion & Analysis Report. Further, pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, the salient features of Financial Statements of Subsidiary, Associate and Joint Venture Companies in Form No. AOC-1 form part of the Annual Report for FY 2021-22, separately.
COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR ASSOCIATES
There are no instances of companies which have become or ceased to be your Corporations Subsidiaries, Joint Ventures or Associate companies during FY 2021-22.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
During FY 2021-22, your Corporation has not received any Order or Direction of any Honble Court or Tribunal or Regulator, which either affects your Corporations status as a going concern or which substantially or significantly affects your Corporations business operations.
DETAILS OF DEPOSITS
Your Corporation has not been accepting any Deposits, as specified in Section 73 to Section 76 of the Companies Act, 2013 and therefore there do not call for any disclosure of Deposits as required under Rule 8(5)(v) of Companies (Accounts) Rules, 2014.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 134(3)(c) of the Companies Act, 2013, it is hereby confirmed that:
i. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures.
ii. The Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and the profit and loss of the Company for that period.
iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
iv. The Directors have prepared the Annual Accounts on a going concern basis.
v. The Directors, have laid down internal financial controls to be followed by the Company and that such Internal Financial Controls are adequate and are operating effectively.
vi. The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
ACKNOWLEDGEMENTS
The Board of Directors gratefully acknowledge the valuable guidance and support extended by the Government of India, Ministry of Petroleum and Natural Gas, other Ministries, State Governments and various statutory and local authorities.
The Directors also wish to thank all dealers and distributors spread all over the country and the HP- Pariwar for reposing their faith, trust and confidence in your Corporation towards improving the service to the valued customers as well as for the overall performance of the Corporation.
The employees of the Corporation have continued to display their total commitment towards the pursuit of excellence. Your Directors take this opportunity to place on record their appreciation for the valuable contribution made by the employees and look forward to their services with zeal and dedication in the years ahead to enable the Corporation to scale even greater heights.
Your Directors are thankful to the Shareholders for their faith and continued support in the endeavors of the Corporation.
For and on behalf of the Board of Directors | |
sd/- | |
PUSHP KUMAR JOSHI | |
Date: August 01,2022 | Chairman & Managing Director |