Director's Report
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Bharat Petroleum Corporation LtdIndustry : Refineries
BSE Code:500547
ISIN Demat:INE029A01011
Book Value(Rs):158.37
NSE Symbol:BPCL
Div & Yield %:4.47
Market Cap (Rs Cr.):92431.86
P/E(TTM):11.67
EPS(TTM):36.51
Face Value(Rs):10
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The Board of Directors takes pleasure in presenting its Report on the performance of Bharat Petroleum Corporation Limited (BPCL) for the year ended 31st March, 2017.

PERFORMANCE OVERVIEW Group Performance

During the year 2016-17, the aggregate Refinery throughput of BPCL's Refineries at Mumbai and Kochi, along with its Subsidiary Company Numaligarh Refinery Limited (NRL) and considering 50% throughput of Joint Venture Company, Bharat Oman Refineries Limited was 31.24 Million Metric Tonnes (MMT) as compared to 29.82 MMT during 2015-16. The BPCL Group ended the year with market sales of 37.74 MMT as compared to 36.83 MMT during 2015-16. During the year, BPCL Group's exported 2.50 MMT of petroleum product as against 1.90 MMT during 2015-16.

The Financial Year saw the Group achieve a Gross Revenue from Operations of Rs. 2,43,747.46 Crores as compared to Rs. 2,19,226.79 Crores recorded in 2015-16. The Profit after Tax stood at Rs. 8,720.94 Crores in 2016-17 as against Rs. 7,584.51 Crores in the previous year. The Group has recorded Earnings per Share of Rs. 66.51 in the current year as against Rs. 57.84 in 2015-16 after setting off the minority interest.

CONSOLIDATED GROUP RESULTS
2016-17 2015-16
Physical Performance
Crude Throughput (MMT) 31.24 29.82
Market Sales (MMT) 37.74 36.83
Financial Performance Rs. Crores
Gross Revenue from Operations 2,43,747.46 2,19,226.79
Profit before Depreciation, Finance Costs and Tax 15,560.22 14,532.94
Finance Cost 696.36 680.49
Depreciation & amortization expense 2,107.64 2,071.87
Profit before Tax 12,756.22 11,780.58
Provision for Taxation – Current 3,168.28 3,4 18.45
Profit after Current Tax 9,587.94 8,362.13
Provision for Taxation – Deferred (Asset) / Liability 1,135.60 613.63
Short / (Excess) provision for Taxation for earlier years (111.24) 10.64
Net Profit (A) 8,563.58 7,737.86
Share of profit of equity accounted investee (net of income tax) (B) 943.39 351.01
Minority Interest (C) 786.03 504.36
Net Income of the group (A+B-C) 8,720.94 7,584.51
Other Comprehensive Income of the group 332.33 16.30
Total Comprehensive Income of the group 9053.27 7600.81
Group Earnings per share attributable to BPCL (Rs.) 66.51 57.84

 

COMPANY RESULTS
2016-17 2015-16
Physical Performance
Crude Throughput (MMT) 25.39 24.12
Market Sales (MMT) 37.68 36.53
Rs. Crores
Financial Performance
Gross Revenue from Operations 2,42,047.82 2,17,894.77
Profit before Depreciation, Finance Costs and Tax 13,429.98 12,800.80
Finance Cost 495.87 565.16
Depreciation & amortization expense 1,891.32 1,844.60
Profit before tax 11,042.79 10,391.04
Provision for Taxation – Current Tax 2,210.00 2,684.00
Provision for Taxation – Deferred Tax 904.73 636.02
Short/(Excess) provision for taxation of earlier years (111.24) 14.66
Net Profit for the year (A) 8,039.30 7,056.36
Other Comprehensive Income (OCI) 132.43 (274.87)
Total Comprehensive Income for the year 8171.73 6781.49
Opening Balance of Retained Earnings (B) 1,422.46 2279.55
Income from BPCL Trust for Investment in Shares (C) 526.17 259.71
Amount available for disposal (A+B+C) 9,987.93 9,595.62
The Directors propose to appropriate this amount as under:
Towards Dividend:
Final Dividend of previous year 1,084.63 1,626.94
Corporate Dividend Tax on Final Dividend of previous year 169.81 294.27
Interim Dividend 4555.43 1156.93
Corporate Dividend Tax on Interim Dividend 828.23 202.51
For transfer to Debenture Redemption Reserve 224.58 243.75
For Re-measurements of Defined Benefit Plans (Net of tax) 50.69 93.18
For transfer to General Reserve - 4,555.58
Closing Balance of Retained Earnings 3,074.56 1422.46
Summarized Cash Flow Statement :
Cash Flows:
Inflow/(Outflow) from Operating Activities 7,881.93 10,179.21
Inflow/(Outflow) from Investing Activities (10,114.68) (7,975.48)
Inflow/(Outflow) from Financing Activities 566.56 (1,839.92)
Net increase/(decrease) in cash & cash equivalents (1,666.19) 363.81

Company Performance

During the year 2016-17, the crude throughput at BPCL's Refineries at Mumbai and Kochi was 25.39 MMT as against 24.12 MMT achieved in 2015-16. The Market sales of the Corporation grew by 3% to 37.68 MMT in 2016-17 from 36.53 MMT in 2015-16.

Indian Accounting Standards

Ministry of Corporate Affairs (MCA) vide their notification dated 16th February 2015 notified the Companies (Indian Accounting Standards) Rules, 2015 applicable for accounting periods beginning on or after 1st April 2016 for all listed companies having net-worth of Rs. 500 Crores or more. Accordingly for BPCL, Ind AS is applicable from financial year 2016-17. The transition was carried out from Generally Accepted Accounting Principles in India (Indian GAAP) as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, which was the "Previous GAAP".

As per the requirements of Ind AS, Corporation has prepared the financial statement for the year ended 31st March 2017, 31st March 2016 & the opening Ind AS Balance sheet as on the date of Transition i.e. 1st April 2015.

In preparing the Ind AS Balance Sheet as at 1st April 2015 and in presenting the comparative information for the year ended 31st March 2016, the Corporation has adjusted amounts previously reported in the financial statements prepared in accordance with previous GAAP.

BPCL's Gross Revenue from operations for 2016-17 stood at Rs. 2,42,047.82 Crores reflecting an increase of 11.08% over the previous year's revenues of Rs. 2,17,894.77 Crores. The profit before tax for the year was Rs. 11,042.79 Crores as compared to Rs. 10,391.04 Crores in 2015-16. After providing for Tax, (including deferred tax) of Rs. 3,003.49 Crores, as against Rs. 3,334.68 Crores during the last year, the Profit after Tax for the year stood at Rs. 8,039.30 Crores as against Rs. 7,056.36 Crores in 2015-16.

The earnings per share amounted to Rs. 61.31 in 2016-17 as compared to Rs. 53.81 in 2015-16. The Earning per share is after adjustment of Bonus Share issued during 2016-17 and BPCL Trust for Investment in Shares. Internal Generation during the year was lower at Rs. 5,716.10 Crores as against Rs. 7,113.55 Crores in 2015-16 due to higher dividend declared by the Corporation during 2016-17.

As per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 the top five hundred 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 enclosed as Annexure J to the Board Report and is available on the BPCLs's website at https://www.bharatpetroleum.com/ images/files/DDP%20Final%20File.pdf BPCL's contribution to the exchequer by way of Taxes and Duties during 2016-17 amounted to Rs. 84,758.84 Crores as against Rs. 67,719.17 Crores in the previous Financial Year. As on 31st March 2017, BPCL's Total equity stands at Rs. 29,668.38 Crores as against the previous year's figure of Rs. 27,332.96 Crores.

Dividend

The Board of Directors has recommended a Final Dividend of 10% (Rs. 1 per share) for the year on the paid-up share capital of Rs. 1,446.17 Crores which amounts to Rs. 174.06 Crores inclusive of Rs. 29.44 Crores for Dividend Distribution Tax. In addition, two interim dividends of 195% (Rs. 19.50 per share) and 120% (Rs. 12 per share) totaling to Rs. 4,555.43 Crores exclusive of Rs. 828.23 Crores for Dividend Distribution Tax was declared and distributed during the year.

Bonus Shares

During the Financial year 2016-17, the Corporation has issued Bonus Shares in the ratio of 1:1 by capitalisation of General Reserve. Further, in the month of July 2017, the Corporation has issued Bonus shares in the ratio of 1 : 2 by capitalisation of General Reserve.

Borrowings

Borrowings from banks increased from Rs. 6,179.08 Crores as at March 31, 2016 to Rs. 11,737.95 Crores at the close of the current financial year. Loans from Oil Industry Development Board stand at Rs. 1,795.13 Crores as at 31st March, 2017 as compared to Rs. 1,725.24 Crores at the end of the previous year. Debentures worth Rs. 550 Crores were issued during the year 2016-17. 4.625% US Dollar International bonds issued during 2012-13 of US$ 500 Million (equivalent to Rs. 3,222.60 Crores) remained outstanding as on 31st March 2017. 3% Swiss Franc International Bonds issued during 2013-14 of CHF 200 Million (equivalent to Rs. 1,292.45 Crores) remained outstanding as on 31st March 2017. 4% US Dollar International bonds issued during 2015-16 of US$ 500 Million (equivalent to Rs. 3,211.28 Crores) remained outstanding as on 31st March 2017.

Deposits from Public

The Corporation 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. The unclaimed amount is being transferred to the Investor Education and Protection Fund after the respective due dates.

Capital Expenditure

The Gross Capital Expenditure during the year 2016-17 amounted to Rs. 9,476 Crores as compared to Rs. 10,311 Crores during the year 2015-16 and including Investment in Joint Venture Companies and Exploration during the year 2016-17 was Rs. 16,949 Crores (Budget estimate of Rs. 13,097 Crores) as compared to Rs. 11,978 Crores during the year 2015-16.

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 31st March 2017 is annexed as Annexure E.

REFINERIES MUMBAI REFINERY

During the year 2016-17, Mumbai Refinery achieved throughput of 13.60 MMT of feedstock (crude oil and other feed-stocks) as against 13.41 MMT achieved in 2015-16. This is the highest throughput ever achieved in Mumbai Refinery.

The Gross Refining Margin (GRM) for the year stood at US$ 5.36 per barrel as compared to US$ 6.37 per barrel realized in 2015-16. The overall gross margin for the refinery in 2016-17 amounted to Rs. 3,671 Crores as compared to Rs. 4,198 Crores in 2015-16.

KOCHI REFINERY

Kochi Refinery achieved the highest ever crude oil throughput of 11.79 MMT in 2016-17 as against a crude oil throughput of 10.71 MMT during the previous year.

The Gross Refining Margin (GRM) for the year stood at US$ 5.16 per barrel as compared to US$ 6.87 per barrel realized in 2015-16. The overall gross margin for the refinery in 2016-17 is Rs. 3,061 Crores as against the previous financial year figure of Rs. 3,610 Crores.

PIPELINES:

The BPCL Group owns a robust network of 2241 km of Product pipelines with design capacity of 17.84 MMT. Pipelines have achieved a throughput of 14.06 MMT in the year 2016-17 which is the highest so far. Pipelines have transported about 5072 MMTKM of petroleum products to BPCL's marketing locations spread across Northern, Central, Western & Southern parts of the country, which accounts for approximately 40% of the total primary transportation.

MARKETING

During the year, 2016-17, BPCL's market sales volume increased by 3.15% to 37.68 MMT as compared to 36.53 MMT in the previous year. BPCL's market share amongst the public sector oil companies stood at 22.77% as at 31st March, 2017 as compared to 22.94% as at the end of the previous year.

A detailed discussion on the performance of the Refineries and Marketing function is given in the Management Discussion & Analysis Report (MD&A).

MAJOR PROJECTS

Integrated Refinery Expansion Project (IREP) at Kochi Refinery

The Integrated Refinery Expansion Project (IREP) at Kochi Refinery envisages increasing the refinery capacity from 9.5 MMTPA to 15.5 MMTPA and modernization of the refinery facilities to produce auto fuels conforming to BS-IV/VI specifications and up-gradation of the residue streams to distillates and Petcoke.

The approved cost of the project is Rs. 16504 Crores and cumulative expenditure upto 31st March 2017 on the project is Rs. 14729.61 Crores.

The project has achieved mechanical completion as per schedule of all the process units, associated utilities and offsites facilities on 31st March, 2017. All the units have been commissioned except Fluidized Catalytic Cracker Unit (FCCU) which is at an advanced stage of commissioning.

Conversion of CRU to Isomerization Unit (ISOM) at Mumbai Refinery

The project involves conversion of the Catalytic Reformer Unit (CRU) to Isomerization Unit (ISOM) along with associated facilities. This would enable Mumbai Refinery to produce 100% BS-IV MS along with world class quality Hexane.

The cost of the project is Rs. 725 Crores and the cumulative expenditure on the project is Rs. 540.24 Crores as on 31st March, 2017.

The project was completed in November, 2016 and commissioned in February, 2017.

Diesel Hydro Treatment Unit (DHT) at Mumbai Refinery

The project involves installation of 2.6 MMTPA capacity DHT to produce 100% BS-IV HSD from Mumbai Refinery. The project is also having capability to produce BS VI grade diesel.

The cost of the project is Rs. 1714 Crores with cumulative expenditure of Rs. 953.12 Crores as of 31st March, 2017. The project was completed in March, 2017 and commissioned in June, 2017.

Heat Traced Pipeline at Mumbai Refinery

The project envisages laying of a Heat Traced Pipeline and associated facilities at Mumbai Refinery for transporting high pour products. This would facilitate transporting intermediate streams between refineries for value maximization.

The cost of the project is Rs. 193.49 Crores and the cumulative expenditure on the project is Rs. 3.25 Crores as on 31st March, 2017.

The project has achieved a physical progress of 31.7% and is scheduled for mechanical completion by January 2019.

Gasoline Hydro Treatment Unit (GTU) at Mumbai Refinery

The project envisages installation of a Gasoline Hydro Treatment Unit (GTU) to produce 100% BS VI MS as per the Auto Fuel Vision and Policy 2025. The project would enable the refinery to supply 100% BS VI grade MS from April, 2020.

The cost of the project is Rs. 554 Crores. The cumulative expenditure on the project is Rs. 10.82 Crores as on 31st March, 2017.

The project is scheduled for mechanical completion by December, 2019.

Propylene Derivative Petrochemical Project (PDPP) at Kochi Refinery

The project envisages production of niche petrochemicals utilizing Polymer Grade Propylene produced from the Petro FCCU being set up as part of IREP. The PDPP project envisages production of Acrylic Acid, Oxo Alcohols and Acrylates, utilizing approximately 250,000 MT per annum of Polymer Grade Propylene. Currently these petrochemicals are imported in the country, hence this project would promote ‘Make In India.' The cost of the project is Rs. 4588 Crores and the cumulative expenditure on the project is Rs. 734.78 Crores as on 31st March, 2017.

The project has achieved an overall physical progress of 21.72% as on 31st March, 2017 with scheduled mechanical completion of May, 2018.

Heat Traced Pipeline (HTPL) at Kochi Refinery

The project envisages laying of a Heat Traced Pipeline and associated facilities in Kochi Refinery for transporting high pour products.

The cost of the project is Rs. 337.06 Crores and the cumulative expenditure on the project is Rs. 5.88 Crores as on 31st March, 2017.

The project has achieved an overall physical progress of 38% as on 31st March, 2017 and is scheduled for mechanical completion by August, 2018.

BS VI Motor Spirit Block Project (MSBP) at Kochi Refinery

The MS Block Project envisages putting up facilities for the production of 100% BS VI grade MS from the refinery to meet the Auto Fuel Vision and Policy 2025 requirements. This project would help the refinery in producing environment friendly clean fuel.

The project cost is Rs. 3313 Crores and the cumulative expenditure on the project is Rs. 32.61 Crores as on 31st March, 2017.

The project is scheduled for mechanical completion by October, 2019.

Ennore Coastal Terminal Project

BPCL has acquired 100 acres of land in Ponneri Taluk, Thiruvallur District from the Salt Commissionerate, Ministry of Commerce, Government of India, for construction of a Storage Terminal. The project scope envisages construction of 124439 KL tankage along with other amenities, 8 bay TLF gantry, pumps and pipelines, product receipt line from Ennore jetty and allied facilities. The approved cost of the project is Rs. 393 Crores and the project has achieved an overall physical progress of 37.08%. The cumulative expenditure on the project is Rs. 147.69 Crores as on 31.03.2017 and the expected commissioning is by April,2018.

Palakkad LPG Terminal Project

BPCL has formed a Joint Venture Company (JVC) with IOC, for the purpose of laying, building, operating, expanding and maintaining LPG Pipeline connecting Kochi-Coimbatore-Erode -Salem with 50% shareholding of BPC and IOC each. The main purpose of laying the pipeline is to evacuate the additional production of LPG from Kochi Refinery after its expansion under the IREP project and also to carry IOC's LPG imports from its proposed import terminal at Puthuvypeen, Kochi to cater to en route demand at various bottling plants.

To facilitate the above movement of LPG evacuation, it was decided to put up a storage terminal at Palakkad. A land parcel of 18.95 acres was taken on lease hold basis for a period of 30 years from Kerala Industrial Infrastructure Development Corporation (KINFRA). The storage terminal will have tankage to store the product received through the pipeline from KR. Bulk loading facilities will be provided for nodal movement to the Tamil Nadu and Karnataka markets.

The approved cost of the project is Rs. 184 Crores. The project has achieved an overall physical progress of 60% and the cumulative expenditure on the project is Rs. 73.24 Crores as on 31.03.2017.

LPG Import Facility at Haldia

The growth of demand for LPG in the Eastern part of UP in Northern Region and requirement of a reliable product source for Eastern Region necessitated the need for dedicated LPG storage facility in the eastern coast especially near Kolkata. Therefore, it has been planned to have a dedicated import terminal at Haldia with a capacity of 2 X 15TMT to store Propane, Butane and LPG for an average throughput of 1.0 MMTPA.

The project has achieved overall physical progress of 20% and the cumulative expenditure on the project is Rs.113.49 Crores as on 31.03.2017.The project is scheduled for commissioning by October 2018.

Mumbai Manmad Pipeline Re-routing

The project envisages laying of a 50 km long 18" Dia pipeline for rerouting of the Mumbai Manmad Pipeline section, construction of 3 Sectionalizing Valve stations (SV stations) and associated facilities.

The cost of the project is Rs. 449.58 Crores and the cumulative expenditure on the project is Rs. 86.94 Crores as on 31st March, 2017.

The project has achieved an overall physical progress of 25.7% as on 31st March, 2017 and is scheduled for mechanical completion in June, 2019.

RESEARCH & DEVELOPMENT

In today's world, innovation is the key element for sustainable growth in a technology intensive energy industry, without which our future would be at risk. To keep pace with the changing market demand, the Research and Development Centers of BPCL are proactively engaged in development of innovative products / process technologies and cleaner fuels / fuel additives to reduce environmental footprints while improving the Company's profitability. In line with this prelude, the Corporate R&D Centre at Greater Noida, Uttar Pradesh and Product & Application Development Centre at Sewree, Mumbai are continuously striving for value creation through research activities The Product and Application development R&D Centre has contributed significantly to the business volume and profitability through development of new grades and alternate formulations of Lube oil. This has helped in increasing our lube oil product portfolio and reducing our input cost.

R&D areas and its benefits are summarized in Annexure A to the Directors Report.

NON-CONVENTIONAL ENERGY INITIATIVES

Our organization is engaging itself in developing green energy projects with great enthusiasm to mitigate green house gas emission.

Use of green energy, which is considered to be clean energy is also economically beneficial for the organization. This in turn is positively contributing to the country's target of achieving 175 gigawatts of renewable energy by 2022. To make this endeavour a reality, BPCL is focused on putting up solar plants at their various locations throughout the country.

With a view to implementing the renewable energy initiatives, BPCL has shortlisted 10 of its Oil Depots/ Installations and LPG Bottling plants for installation of rooftop solar plants. It is envisaged that such rooftop solar plants will reduce conventional electricity consumption and also achieve green house gas emission reduction. The feasibility and system design study is being conducted in the depots, installations and LPG bottling plants. Upto March 2017, rooftop solar units have been installed in 1001 Retail Outlets across the country. BPCL is carrying out a detailed feasibility and system design study at 19 Company Owned Company Operated Retail Outlets as a pilot for solarizing large format Retail Outlets.

START UP INITIATIVE

The purpose of the ‘Start Up India' initiative (christened Project Ankur) is to build a strong ecosystem for nurturing innovations and creating and empowering startups. This would stimulate, incubate, foster and enhance innovation and research capabilities, driving sustainable economic growth & generating entrepreneurship and employment opportunities. The aim is to encourage ideas leading to disruptive technologies and new business models. BPCL proposes to have a strategically oriented corporate led model where the corporate center defines the areas with a couple of focal points. The first focus area would be innovations that will help the Company or its business units move into adjacent areas and disruptive technologies. The second focus area would be business models that could change existing core businesses. This kind of corporate led model would also help the organization to deal with disruptive forces better than business unit led models. The value of this model would be mainly derived from the opportunities to identify and understand market trends early and to evaluate and build businesses in parallel to the existing core businesses. It would also enable BPCL to explore outside ventures as well as develop internal innovations.

BPCL has allocated Rs. 25 Crores for promoting a startup culture within and outside the Company. This will be given as grants to deserving applicants. A process has been put in place whereby a six member committee, consisting of three internal and three external members will decide on the recipients of the grant. A website has been created to receive applications from the general public and a Pan India advertisement was released in May 2017.

INDUSTRIAL RELATIONS

The overall Industrial Relations climate remained harmonious and cordial throughout the year. BPCL continued with its thrust on resolving issues through continuous dialogue and maintaining collaborative approach with Unions, workmen and other stake holders. Regular meetings were held with the representatives of Unions to deliberate on various challenges and opportunities concerning the organisation as well as workmen. The Unions and workmen demonstrated their commitment to achieve organizational objectives. During the year 2016-17, there have been certain communications received from the Ministry of Petroleum

& Natural Gas with regard to the company's policy on payment of shift allowance for working in night shifts at the Refinery and other operating locations and encashment of half pay leave of the employees upon their superannuation beyond the limit of 300 days. The Company has submitted its response justifying the payment of these benefits. Further, in respect of leave encashment, the Company has amended the leave encashment policy on a prospective basis in line with the guidance given in the Presidential Directive issued to another major PSU company. Based on the contractual obligations for above polices existing as on 31st March, 2017, the Company has made/retained appropriate provisions in the books of accounts for the financial year 2016-17.

CORPORATE SOCIAL RESPONSIBILITY

BPCL is a vital player in the energy sector and is contributing significantly to India's progress. In alignment with the vision of the Company, its CSR initiatives strive to Energise Lives of the communities. Over the years BPCL has contributed towards the goal of achieving Sustainable Development and made significant progress in the thrust areas of Education, Water Conservation, Skill Development, Health & Hygiene and Community Development. Seeking to herald an inclusive business paradigm, CSR initiatives are undertaken based on social, environmental and economic considerations. CSR being ingrained into the business strategy, various initiatives have been pioneered to address some important developmental challenges. Today, through institutionalized and project-based approach, BPCL continues to take up new projects while exiting from those that have been successfully completed.

Sustaining BPCL's commitment to Education, initiatives have focused on improving the quality of education while striving to bring in technology and innovation into the teaching process. Its Computer Assisted Learning (CAL) project, which began in 2009-10, has been scaled up to over 250 centers in Mumbai, Uran, Panvel, Solapur (Maharashtra), Lucknow (UP) and Jaipur (Rajasthan). This project provides school going children an easy and regular access to advanced information technology (multi-media computers, broadband internet and quality educational software contents) and supplements their learning through locally designed curriculum, trained instructors and also engages teaching-staff actively. Till date, project CAL has covered over 1 lakh children from class I to X and has been extended to the community residing around the Mumbai Refinery. BPCL has successfully covered all government schools in the Uran block through project CAL and successfully handed over the project to the local government for continuation of the project thus taking steps towards sustainability.

The Science Education Project for students of Government schools in Solur, Bangalore (Karnataka) focuses on experiential learning models based on science concepts. It reaches the students through a mobile science lab and science centre. This project has made hands-on science education available to poor rural children and teachers. This year, over 8546 students from 84 schools have enjoyed hands-on learning of science through this project, while also being groomed as young science leader-thinkers.

A number of new projects have also been initiated during the year such as remedial education for children in 20 slums of Bhubaneshwar, dance and theatre training for underprivileged children in Mumbai which contributes to their holistic development, providing education support to cancer affected children and supporting night schools in Mumbai for those unable to complete their secondary education in day schools for various reasons. Along similar lines, BPCL has taken up remedial education of students from Classes VI-IX in Coimbatore to improve their learning in Tamil, Mathematics and English. BPCL has also successfully completed the fourth batch of its in-house project Saksham for professional development of primary/upper primary teachers and headmasters from 46 low income schools of Mumbai. This project aims at encouraging teachers to use new techniques for teaching, classroom management as well as developing new teaching materials according to the needs of the class.

With an objective to inculcate the habit of reading in children from government schools and building professional capacities of teachers and principals, BPCL has continued to support setting up and management of libraries. Library books are classified as per the difficulty level so that students can choose the book as per their reading ability.

Deriving inspiration from Hon'ble Prime Minister of India's vision of ‘Skilled India', BPCL has taken steps in this direction through Corporation driven initiatives as well as at the Industry level in this direction. The Oil & Gas

Industry is together working in the direction of setting up Mega Skill Development Institutes-SDIs and subsequent SDIs in the catchment areas of other Oil PSUs. BPCL has taken the lead role to set up SDI Kochi and has supported setting up the model SDI in Odisha and SDI-Visakhapatnam as well. Further BPCL has contributed towards the Hydrocarbon Sector Skill Council for assessing skill needs and gaps, establishing competency standards for each sector like upstream, downstream and mid-stream and imparting the requisite skills based on competency standards. Several placement linked skilling projects have been successfully completed across the country for youth, women and persons with disabilities. Water scarcity is a disturbing phenomenon in the country for decades and this affects a large population in India. Recognizing the suffering of people living in water scarce areas of rural and urban India, BPCL has undertaken Project ‘BOOND' which is a water conservation initiative through rain water harvesting. The project has covered 36 villages from Tamil Nadu, Karnataka, Maharashtra and Rajasthan during the Financial year 2016-17. Effective community participation and inclusive approach of the project has enabled successful formation of Village Water Committees that have taken over the governance and maintenance of the water structures constructed. In addition to this, project BOOND also supports sustainable employment through new and improved agricultural practices like crop rotation, mulching, newer crops, innovative methods of irrigation and horticulture. Since 2010, BPCL has collectively reached out to 196 villages through project BOOND. These initiatives aim at increasing availability of water for agriculture, livestock and ground water recharge, decrease in migration, improving the quality of life of the villagers and a positive effect on the environment in addition to flood moderation.

BPCL is proactively working to address issues of health and sanitation by providing access to basic health care services, both preventive and curative, to the underprivileged and building the capacity of local health facilitators and community members. Projects related to strengthening healthcare infrastructure and services and building capacities of healthcare professionals, supporting health camps through mobile medical units, for the general community have been directed towards making basic healthcare services accessible to the underprivileged. Furthermore, various nutritional support projects in Kerala for anganwadi and school children have been undertaken. Through various health initiatives during the year, BPCL has reached out to 1,44,205 beneficiaries. BPCL has participated in Swachh Bharat Abhiyan through various initiatives. The Company has undertaken maintenance of toilets in 4 states – Andhra Pradesh, Chhattisgarh, Telangana and West Bengal, which were constructed as part of ‘Swachh Vidyalaya Abhiyan'. Additionally, 20 toilets have been constructed in schools and a college at Dharwad, Karnataka. BPCL has also undertaken a project for cleanliness around Madurai Meenakshi Temple aiming at making it a ‘Swachh Iconic Place'.

Participating in the developmental journey of the country BPCL considers community development through creating opportunities for learning, skilling and infrastructure development as the pillars to progress. In line with this objective and in addition to the initiatives on education, water conservation, health and hygiene, BPCL has also undertaken projects such as installation of solar lights, handpumps in remote villages. Environment and women-focused initiatives have been supported nationwide under the Ujjwala scheme of providing deposit free LPG connections to below poverty line (BPL) families. Realising the potential of employee volunteering and leveraging their talent, expertise and contribution for CSR initiatives, BPCL enables its employees to align and engage in CSR initiatives through the Bharat Connect programme. This project enables every new entrant in BPCL to align with the CSR objectives and activities of the company. Various activities conducted through volunteering such as ‘Once upon a time' - a story telling activity in schools, Shramdaan and Project BOOND, volunteering in ongoing CSR projects, participation in ‘Joy of Giving Week' and many more are carried out regularly.

BPCL is committed to continue the work of sustainable development through focused and pro-active social projects under CSR initiatives governed by a Board approved CSR policy which aligns with national developmental goals.

The Annual Report on CSR activities in the specified format is provided in Annexure B. The CSR Policy may be accessed on the Company's website at the link https://www.bharatpetroleum.com/social-responsibility/ corporate-social-responsibility/policy.aspx

PROMOTION OF SPORTS

BPCL sportspersons continued to excel in the National as well as International sports arena in the fields of Cricket, Hockey, Badminton, Chess, Table Tennis, Kabaddi, Volleyball, Billiards & Snooker, Bridge, Archery and Arm Wrestling.

Rio Olympics, the much awaited major international multi sports event was held in August 2016. Amongst the Oil sector PSU's, the highest number of sportspersons who represented the country at Rio, were from BPCL. The Company's very own talented ace shuttler, P. V. Sindhu, became India's first woman to win a Silver Medal at the Olympics. Other players from BPCL who represented India at the Rio Olympics were Saina Nehwal and Jwala Gutta in Badminton, Soumyajit Ghosh in Table Tennis, Atanu Das in Archery, Devinder Walmiki, S.V. Sunil, Harmanpreet Singh and Tushar Khandker (Assistant Coach of Indian team) in Hockey.

P.V. Sindhu also bagged her first Super Series Premier Title by winning the China Open Badminton held at Fuzhou, China in November, 2016. Sameer Verma won the Syed Modi Grand Prix Badminton tournament held at Lucknow in January, 2017.

BPCL's renowned Badminton players Saina Nehwal and P.V. Sindhu were conferred with the Padma Bhushan Award and Rajiv Gandhi Khel Ratna Award respectively. The Company's Table Tennis player, Soumyajit Ghosh was conferred with the Arjuna Award by the Hon'ble President of India.

Devendra Joshi was the Runner-up at the 2016 JW World Open Billiards Championships in England. Marianne Karmarkar represented India in the World Bridge Games in the Mixed Team event in Poland.

Four of BPCL's Hockey players namely Devinder Walmiki, Harmanpreet Singh, Birendra Lakra and Tushar Khandker (Assistant Coach) were part of the Indian team which won the Gold Medal at the Asian Champions Trophy held at Malaysia in October, 2016. Harjeet Singh, Varun Kumar, Harmanpreet Singh and Vikas Dahiya were part of the Indian Hockey team which won the Junior Hockey World Cup. BPCL's employee and ex- Olympian Romeo James was the goal keeping coach of the victorious Junior Indian Hockey team. Devinder Walmiki and Lalit Upadhyay were the members of the Kalinga Warriors team which won the prestigious Hockey India League title. S.V. Sunil was named Player of the Year 2016 whereas Harmanpreet Singh was named the Emerging Player of the Year by Asian Hockey Federation.

In the Pro-Kabaddi League, BPCL's Kabaddi players like Vishal Mane, Nilesh Shinde, Kashiling Adake, Rishank Devadiga, Rohit Rana, Surjeet Kumar, Nitin Madane and Girish Ernak made a mark with their outstanding performances.

In Cricket, Kuldeep Yadav made his debut in the Test Match against Australia. Manish Pandey and Dhawal Kulkarni represented the Indian team for One Day Internationals and performed consistently well.

In Chess, BPCL's leading Chess player P. Harikrishna is doing exceedingly well at the international level and is currently ranked No. 13 in the World Chess rankings. It is the highest rank achieved by an Indian player after the legendary Vishwanathan Anand.

Young prodigy, Prithvi Shaw, one of BPCL's Sports Scholars, became the second youngest player after Sachin Tendulkar to score a century on his Ranji Trophy debut for Mumbai at the age of 17 years. He also represented the Indian under- 19 Cricket team in the ‘Under- 19 Cricket World Cup'. Subhankar Pramanick, another BPCL Sports Scholar bagged the Gold Medal in the 50m Free Rifle in the Junior Men's Individual event and Silver Medal in the Team event in the ISSF Junior World Cup held at Gabala, Azerbaijan September, 2016.

The year 2016-17 has been a remarkable year for Sports in the Corporation. BPCL Sportspersons have excelled on the International stage and made the nation proud with their outstanding achievements especially P.V. Sindhu, the Olympic Silver medalist. BPCL Sportspersons P. Harikrishna, Atanu Das, Saina Nehwal and Soumyajit Ghosh have been an inspiration to thousands of youngsters nationwide.

RESERVATION AND OTHER WELFARE MEASURES FOR SCHEDULED CASTES, SCHEDULED TRIBES, OTHER BACKWARD CLASSES AND PERSONS WITH DISABILITIES

The Corporation has consistently demonstrated commitment towards adherence to the Presidential Directives and other guidelines issued by the Ministry of Petroleum & Natural Gas, Ministry of Social Justice and Empowerment and the Department of Public Enterprises relating to reservations / concessions for Scheduled Castes, Scheduled Tribes, Other Backward Classes & Persons with Disabilities.

With an endeavour to ensure sustained and effective compliance of Presidential Directives and Ministry guidelines, robust processes and systems have been put in place. Proper maintenance of Rosters as per the Directives and regular inspection of the same by Liaison Officer of the Corporation and the Liaison Officer of MOP & NG are done to ensure compliance.

Students belonging to the SC/ST communities and economically backward sections are encouraged by awarding scholarships to those students pursuing courses at ITI and Secondary School education, up to graduation level.

The Corporation abides by and fulfills the provisions under ‘The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation), Act 1995' in relation to providing employment opportunities for Persons with Disabilities (PWDs).

Details pertaining to representation/appointment of SC, ST, OBC candidates and Persons with Disabilities are enclosed as Annexure C.

IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

The Official Language Implementation Committees continued to function at the Corporate, Regional, Refinery and Location levels, to take initiatives based on the annual program issued by the Ministry of Home Affairs besides implementing the provisions of the Official Language Act and Rules. These Committees perform the task of reviewing the progress made in Official Language Implementation on a quarterly basis. All committees have organized meetings as per the rules during this year. The Ministry of Petroleum & Natural Gas conferred the "Third Rajbhasha Trophy" upon BPCL for excellent implementation of Hindi language. Shri Dharmendra Pradhan, Hon'ble Minister of State (I/C), Ministry of Petroleum & Natural Gas handed over the trophy to Shri S. Ramesh, Director (Marketing).

For the first time in BPCL's history, the Chairmanship of Town Official Language Implementation Committee for Manmad was conferred upon BPCL by the Department of Official Language of the Ministry of Home Affairs. The First Sub-Committee of the Parliamentary Committees on Official Language held inspection visits at seven BPCL establishments and the Joint Director of Ministry of Petroleum & Natural Gas held inspection visits at eight BPCL establishments.

"Hindi Fortnight" was celebrated during 14th - 28th September, 2016 across all the Regions and Refineries. Various contests and cultural programs were organized during this period.

BPCL's in - house journal – ‘Petro Plus' and newsletter – ‘Journeys' were issued in a bilingual format. A majority of BPCL advertisements were also published in bilingual format.

Hindi Co-ordinators' conferences were organized by all the Regions and Refineries for promotion of Hindi language. Representatives from the Ministry of Petroleum & Natural Gas also participated in these conferences. "World Hindi Day" was organized on 10th January 2017 across all the Regions and Refineries. On this occasion, various contests were organized for encouraging progressive usage of Hindi language among the employees.

During the year, 146 BPCL establishments got notified under the Rule 10(4) of the Rajbhasha Act 1976. All the Regions and Refineries were registered for sending online Quarterly Report on Hindi implementation to the Department of Official Language of the Ministry of Home Affairs.

During the year, Hindi Training and Indic Software Unicode trainings were conducted. A total of 226 Hindi Workshops were organized in this regard.

BPCL's online RTI Portal was launched in bilingual format allowing the citizens to post their RTI queries in Hindi and English languages.

CITIZEN CHARTER AND PUBLIC GRIEVANCE REDRESSAL

BPCL is sensitive to the service levels offered to its customers across every touch-point in constant pursuit of excellence and its commitment to enhance customer experience. As part of this, BPCL has published the Citizen Charter on the Corporate website www.bharatpetroleum.in. The charter is available both in Hindi and English versions and provides details of a range of products and services offered to the customers. The charter also covers an overview of the marketing activities of BPCL, policy guidelines and processes on marketing of petroleum products including the mandate of the

Corporation, customer rights with respect to standards and deliverables, quality, time-frame for service delivery, selection guidelines for dealerships and distributorships, the grievance redressal mechanism etc. to ensure transparency at every level. In order to reach out to customers / citizens, a list of Nodal Officers has been provided in the Citizen Charter with contact details for expeditious redressal of grievances and personal hearing. BPCL's constant endeavour is to enhance customer experience across all touch-points through various service level initiatives in its pursuit of excellence. These service levels are constantly monitored and reviewed / updated considering the changing business environment and customer's expectations. The Citizen Charter is also updated periodically and it was last updated in November 2016.

RTI Act came into existence in the year 2005 empowering ordinary citizens of the country to seek information from any public authority. BPCL has implemented the Act in letter and spirit with belief in the philosophy of transparency being the essence of good governance. In the journey of over 12 years of the RTI Act, BPCL has setup a formidable structure in place with 88 CPIOs (Central Public Information Officers) and 12 Appellate Authorities across the organization in major business units/entities such as Retail, LPG, Aviation, Human Resources, International Trade, Mumbai and Kochi Refineries to ensure that RTI applications are responded to effectively and in a timely manner. BPCL has handled 29,672 Right to Information Act (RTI) applications, 4387 appeals and 732 second appeals to CIC during the year 2016-17. BPCL did not have any instance of penalty or strictures in these 12 years. Initially, BPCL had an in-house RTI web package to monitor all RTI applications and appeals and CIC cases. Effective, 1st August 2016, BPCL has moved to RTI Online in compliance of the instructions from DoPT and MoP&NG smoothly and successfully. Several Training Programmes have been conducted to train CPIOs and AAs along with their staff to handle RTI online. As a knowledge management initiative, RTI related articles are published in the in-house newsletter brought out periodically, which covers various aspects of the RTI Act and learnings from key CIC decisions and Case Studies, with the objective of enhancing knowledge and improvising on deliverables. During the period ending 31st March 2017, BPCL has disposed of 3,464 RTI Applications within the stipulated timelines. On its Corporate Website, a separate section has been provided under Section 4(1) (b) of the RTI Act.

The Central Public Grievance Redressal and Monitoring System (CPGRAMS -commonly known as PG Portal) - an internet based Grievance Redressal Mechanism of the Government of India (under DARPG (Department of Administrative Reforms & Public Grievances) helps BPCL in speedy redressal of public grievances. BPCL has a well-established grievance redressal framework in each Strategic Business Unit for timely and qualitative redressal of public grievances. The grievances received on this portal are monitored from the Corporate Office. During 2016-17, 3,762 grievances were received against which 3,621 such grievances were redressed and closed. BPCL also reaches out to its customers / citizens at large through its established Centralized Customer Care System portal (CCS) – Smartline. It is an interactive platform to customers with web based access / dedicated toll free numbers, which enables customers to connect with BPCL and log any interaction - complaints, suggestions and feedback. The customers / citizens are sent an acknowledgement / alert after every interaction.The CCS is designed to track every interaction and an in-built 3-tier escalation matrix has been provided in the system.

MICRO & SMALL ENTERPRISES

In line with "Public Procurement Policy for MSEs, Order 2012", BPCL has been procuring more than 20% of its Goods and Services, through MSEs as against a target of 20%, annually. BPCL has also been fully abiding by the other mandates of the Policy.

All the high value tenders at BPCL are through press tender route. The General Conditions of Contract (GCC) and General Purchase Conditions (GPC) of press tenders have the purchase preference clause for MSEs. As per existing Purchase Preference Policy of Government of India, in any tender, participating MSEs, who are within price band of L1+15% will get a portion of order, provided they match L1 price. This allocation to MSEs is atleast 20%. Additionally, 20% of this 20% portion i.e. 4% of the total tender quantity is reserved for SC/ST entrepreneurs in MSE category. The Public Procurement Policy Order 2012 also states that in the event of failure of such MSEs, owned by SC/ST, to participate in the tender process or meet tender requirement and L1 price, 4% sub target shall be met from other MSEs.

BPCL organized 93 vendor meets/ workshops across India at Retail locations and Refineries to promote the Public Procurement Policy for MSEs. BPCL teams participated in 7 Vendor Development Programmes cum Exhibition conducted by Micro, Small and Medium Enterprises Development Institute at Nagpur, Ambernath, Murbad, Goregaon, Delhi, Pune and Thane. BPCL representatives also promoted the Public Procurement Policy for MSE during "Vibrant Gujarat week" held in Gandhinagar during January, 2017. A "Premier Vendor Workshop" was held during November, 2016 wherein Dy. Director, MSME-DI, Mumbai was invited who made a detailed presentation of benefits of MSE Purchase Preference Policy to the vendors. A special programme for SC/ST vendors was held during December, 2016 at Mumbai Refinery and 21 SC/ST vendors have been registered through this programme.

In order to encourage development of vendors from SC/ST category, BPCL's Mumbai Refinery conducted a unique training and mentoring program for budding entrepreneurs from the SC/ST category i.e. Entrepreneurship Development Program (EDP). The entire program was spearheaded by BPCL SC/ST Association and all training and administrative support was provided by BPCL. 24 candidates were selected under this program and were given one month classroom training from 24th April to 23rd May 2017. In addition, hand holding for these entrepreneurs shall be done by BPCL for one year. MSE procurement plan for 2016-17 was put up in the BPCL website. It can be viewed at https://bharatpetroleum.com/ Bharat-Petroleum-For/Business-Associates/Vendors.aspx. As per the mandate of MSE Purchase Preference Policy, nodal officer in BPCL is already appointed since the year 2012 and the contact details and name is communicated regularly to the Ministry.

For the year 2016-17, the total procurement value for BPCL for Goods and Services, excluding Works Contracts, where MSEs could have participated was Rs. 4,919.61 Crores and the actual procurement value from MSEs was Rs. 1,613.88 Crores, i.e. an achievement of 32.80% as against the target of 20%.

The procurement for Goods and Services excluding Works Contracts from MSE-SC/ST vendors during the year 2016-17 was Rs. 91.20 Crores. i.e. an achievement of 1.85% as against a target of 4%. There was a shortfall against the target since MSE-SC/ST vendors did not bid. BPCL had undertaken special initiatives to enhance participation by MSE-SC/ST vendors, such as inclusion of MSE Purchase Preference Clause in GCC and GPC as mentioned earlier. BPCL had participated in the National Vendor Development Programme organized by Dalit Indian Chamber of Commerce and Industry (DICCI) and Ministry of Petroleum and Natural Gas (MOP&NG) at Vigyan Bhavan, New Delhi in March 2017 and made presentation to around 400 SC/ST Vendors for promoting their participation. This was over and above the special drive undertaken by Mumbai Refinery wherein 21 SC/ ST vendors were registered as mentioned earlier. Also, the one month long "Entrepreneurship Development Programme", was a step towards encouraging budding SC/ST entrepreneurs to develop in their respective fields.

VIGILANCE

Vigilance in BPCL is proactive as well as preventive in contributing to the overall good governance in the organization. The department constantly endeavours to promote improvement in systems, processes and practices through an approach of proactive and participatory vigilance leading to "Vigilance for Corporate Excellence". It believes that with best practices, adequate controls, accountability and transparency, decisions taken will be efficient, effective and consistent, ultimately leading to Corporate Excellence. This also helps sensitizing employees to this concept so that their thoughts and actions are aligned towards integrity and transparency.

Vigilance, helps the Business, identify susceptible areas in existing procedures and processes like tendering processes, vendor bill payments, channel partner selections etc. Information Technology is being extensively utilized to effectively institute more transparent processes like e-tendering, e-payments and e-receipts thereby instilling confidence of being a just and fair organization amongst BPCL vendors, channel partners and customers. Many recommendations are being made on field observations to improve existing systems and processes.

As a part of preventive vigilance, awareness sessions were conducted for our employees working at operating locations and regional offices by Vigilance officers during their visits to enhance knowledge and awareness on the operational aspects of various guidelines and standard operating procedures in vogue. This was done with a premise to promote clean business transactions, professionalism, productivity, promptness and ethical practices.

Corporate Vigilance also carried out thorough investigations into the Complaints and Source Information. Complaints including those received online, were investigated both directly by Team Vigilance and through Businesses / Entities within the stipulated time frame.

There is a regular interaction with the employees of BPCL through its internal website "Intralink" as well as with the customers/others concerned through the Vigilance portal available on the corporate website, which also has a provision to lodge complaints.

The Vigilance portal creates awareness on good governance, sharing knowledge on ethical practices and proactive vigilance and connecting with all the employees. This website has useful links of Central Vigilance Commission, Department of Personnel & Training Government of India etc.

As a part of capacity building Vigilance Officers had undergone training programme conducted by Central Bureau of Investigations and various other institutes of repute.

The Vigilance Awareness Week (VAW) 2016 (from 31st October to 5th November, 2016) was launched at BPCL Corporate office in Mumbai on 2nd November, 2016 with the administering of pledge by Director (HR), Director (Refineries), GM (Vigilance) and other senior BPCL officials and staff. Mr. Satyabrata Kumar, IRS, Joint Director Enforcement Directorate, Mumbai Zone, Mumbai Maharashtra was the Chief Guest and he highlighted the role of inclusive and participative preventive vigilance in designing processes and projects in such a manner that all possible precautionary steps are in built and active at all times in close association and collaboration with action taken by all stakeholders.

Similarly, in all the four Regions and two Refineries (Mumbai and Kochi), subsidiary: Bharat Petro Resources

Limited, Numaligarh Refinery Limited, Petronet CCK Limited, Vigilance Awareness Week was launched with administering of pledge by Chief Guest in the presence of Senior BPCL Officials.

In line with the theme "Public Participation in Promoting Integrity and Eradicating Corruption", set by the Central Vigilance Commission during this period, various activities such as Awareness Sessions, Essay Contests, Question Answer Sessions, Vigilance Quiz, Debate Competition, Painting Contest and Skit program (topic: Fighting Corruption) were conducted for employees and school children.

As a part of public outreach, programmes to propagate the Integrity Pledge were conducted in Vijayawada and Guntur in March, 2017. These programmes were graced by Central Vigilance Commissioner, Shri K V Chowdhary, IRS as the Chief Guest. During the programme more than 1200 participants administered the Integrity Pledge online.

The Vigilance Department, through its endeavours in the proactive vigilance arena, nurtures ethical values in school children through focused programs. Such interactions reinforces the attitude of righteousness in the young impressionable minds which certainly has an implication for society at large. The school children form an Integrity Club and are called Young Champions of Ethics (YCEs). By inculcating values, students are slowly made aware of their immense power to make the right choices and their ability to use the power to bring about changes in the society at large. Integrity Clubs are operational in various schools in Kochi, Mumbai, Chennai and Kolkata. Vigilance recognizes the importance of a moral value system in education and therefore through its interactive initiative "Choti Choti Batein" for the school children it attempts to lead the young minds towards appreciating a virtuous existence. Ten schools in Mumbai, Sholapur, Chennai and Kolkata and touching around 1,100 students from various strata of the society have been covered. The 7th edition of the Vigilance Plus magazine was released and was received very well by all the stakeholders. This magazine carries a snapshot of various activities carried out during the VAW 2016 and other events conducted by Vigilance Dept. The articles in the magazine were contributed by the staff members and school students narrating their experiences to combat corruption in day-to-day life.

BPCL Vigilance has adopted a path for improving governance through an approach that is progressive, preventive, participative and punitive.

SUBSIDIARY, JOINT VENTURES AND ASSOCIATE COMPANIES

The Group consists of 5 Indian subsidiaries and 5 foreign subsidiaries as on March 31, 2017. Further, the Company has 22 Joint Venture Companies and Associate

Companies within the meaning of Section 2 (6) of the Companies Act 2013 (‘the Act').

Details of Company that has become a Subsidiary during the financial year 2016-17 BPRL International Singapore Pte Ltd
Details of Company that has become a Joint Venture / Associate during i) Haridwar Natural Gas Pvt. Ltd.
the financial year 2016-17 ii) Goa Natural Gas Pvt. Ltd.
iii) FINO Paytech Ltd.
Details of Company that has ceased to be a Joint Venture / Associate during the financial year 2016-17 Nil

A separate statement containing the salient features of the financial statement 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 Corporation 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 will be available for inspection and provided to any shareholder of the Company who asks for it. The policy for determining material Subsidiaries is posted on the Company's website at the link: http://www.bharatpetroleum.co.in/General/Policyon MaterialSubsidiaries.aspxRs.id=4

SUBSIDIARY COMPANIES

NUMALIGARH REFINERY LIMITED (NRL)

NRL was incorporated in 1993 with an authorized Share capital of Rs. 1,000 Crores. It is a Category I Mini Ratna company and has a 3 MMTPA refinery at Numaligarh in Assam. Besides the refinery, NRL has two marketing terminals, one at Numaligarh & other at Siliguri for evacuation of product. NRL also has a 10 TMTPA LPG Bottling Plant at Numaligarh. As on 31st March, 2017, the paid up capital of NRL was Rs. 735.63 Crores of which BPCL holds 61.65%.

During 2016-17, NRL Crude throughput was 2.68 MMT as compared to 2.52 MMT in the previous year.

NRL Revenue from Operations was Rs. 13,946.92 Crores for the financial year ending 31st March 2017 as compared to Rs. 11,925.44 Crores in the previous year. The company's consolidated profit after tax for the year stood at Rs. 2,049.83 Crores as against profit of Rs. 1,182.27 Crores in the previous year. The earnings per share (EPS) for the year 2016-17 was Rs. 27.86 as compared to Rs. 16.07 in 2015-16. An interim dividend of Rs. 10 per share of Rs. 10 each has been paid and the Board of Directors of NRL have proposed a dividend of Rs. 8.60 as final dividend for the current financial year as compared to Rs. 7 per share in the previous year. NRL had a net worth of Rs. 5,180.64 Crores as at 31st March 2017.

BHARAT PETRORESOURCES LIMITED (BPRL)

BPRL was incorporated in the year 2006 as a wholly owned Subsidiary Company of BPCL with the objective of implementing BPCL's plans in the upstream exploration and production sector.

As on 31st March 2017, BPRL has an authorized share capital of Rs. 3,000 Crores and paid up share capital of Rs. 2,920 Crores which is entirely held by Bharat Petroleum Corporation Limited (BPCL), the holding company. BPRL has recorded consolidated income of Rs. 50.92 Crores and a consolidated loss of Rs. 500.03 Crores for the financial year ending 31st March, 2017. The consolidated loss was mainly due to interest cost on loans taken for investments in Russian assets and due to fair valuation of financial assets.

BPRL has participating interest (PI) in twenty two blocks of which twelve are located in India and ten overseas, along with equity stake in two Russian entities holding licence to four producing blocks in Russia. Seven of the twelve blocks in India were acquired under different rounds of New Exploration Licensing Policy (NELP) and five blocks were awarded under the recently concluded discovered small fields bid round 2016. Of the overseas blocks, six are in Brazil and one each in Mozambique, Indonesia, Australia and Timor Leste. BPRL and its consortia have a total of 25 discoveries in respect of Blocks held in five countries i.e. Brazil, Mozambique, Indonesia, Australia and in India. Most of the blocks of BPRL are in advanced stages of exploration, appraisal, pre-development and production. The total acreage held by BPRL and its subsidiaries is around 23,878 sqkm of which approx 76% is offshore.

BPRL has wholly owned subsidiary companies located in Netherlands, Singapore and India. The subsidiary located in Netherlands, i.e. BPRL International BV. has three wholly owned subsidiary companies viz. BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV. BPRL Ventures BV has 50% stake in IBV Brasil Petroleo Limitada, which currently holds PI ranging from 20% to 40% in six blocks in offshore Brazil. BPRL Ventures Mozambique BV has PI of 10% in a block in Mozambique and BPRL Ventures Indonesia BV holds PI of 12.5% in a block in Indonesia. In Financial year 2016-17, BPRL has formed a wholly owned subsidiary located in Singapore, i.e. BPRL International Singapore Pte Ltd (BISPL). BISPL has formed two Joint Venture Companies as Special Purpose Vehicles (SPV) i.e. Taas India Pte Ltd and Vankor India Pte Ltd in May 2016 alongwith Oil India Ltd and Indian Oil Corporation Ltd, with BISPL holding 33.0% stake in each of SPV to hold stakes in the Companies in Russia. BPRL has a wholly owned subsidiary company, Bharat PetroResources JPDA Limited in India which holds a PI of 20% in Block-JPDA 06-103, in Timor Leste. The PI in respect of Blocks in India and Australia are held by BPRL.

PETRONET CCK LIMITED (PCCKL)

PCCKL was originally floated as a Joint Venture Company of BPCL with Petronet India Limited with an authorised capital of Rs. 135 Crores and paid up share capital of Rs. 100 Crores. It became a subsidiary of BPCL in May, 2015 and later in July, 2016 it became a wholly owned subsidiary of BPCL with total investment of Rs. 194.23 Crores. The company owns and operates a 292 km long multi product Kochi-Karur pipeline from BPCL's installation of Irimpanam to Karur for transportation of MS, HSD and SKO.

The pumping volume during the year 2016-17 was 2.78 MMT as against 2.72 MMT in the previous year. PCCKL registered a turnover of Rs. 109.78 Crores and net profit of Rs. 58.41 Crores for the financial year ending 31st March,2017 as compared to a turnover of Rs. 107.78 Crores and net profit of Rs. 59.62 Crores in the previous year. The EPS for the year stood at Rs. 5.84 as against Rs. 5.96 in 2015-16. During the year 2016-17, PCCKL has paid dividend of Rs. 12.00 per share.

BPCL Board had granted "in principle" approval for the merger of PCCKL with BPCL at its meeting dated January 16, 2017. The further action with regard to the merger is in progress.

BPCL-KIAL FUEL FARM PRIVATE LIMITED (BKFFPL)

BPCL has signed a Joint Venture Agreement with KIAL (Kannur International Airport Ltd) for implementation of Fuel Farm at the newly developing Kannur International Airport at Kannur on 74:26 equity basis. The company has been incorporated on 18.5.2015 and the authorized capital of the company is Rs. 18 Crores. As of now BPC has contributed Rs. 5.55 Crores to BPC-KIAL venture. Physical achievement of the work of the project is 90% and it will be commissioned ahead of Kannur International Airport Ltd.

JOINT VENTURE COMPANIES AND ASSOCIATES BHARAT OMAN REFINERIES LIMITED (BORL)

Bharat Oman Refineries Ltd. (BORL), is a Joint Venture company between Bharat Petroleum Corporation Ltd. (BPCL) and Oman Oil Company S.A.O.C. (OOC). As on 31.3.2017 both BPCL and OOC have an equity stake of 50% each in BORL's paid up share capital of Rs. 1777.23 Crores. Besides this, BPCL has subscribed to Share Warrants of Rs. 1585.68 Crores. Further, the State of Madhya Pradesh has also subscribed to Rs. 26.90 Crores of share warrants in BORL.

BORL meets BPCL product requirements in the Northern and Central Regions in the country.

During the year, Bina refinery recorded a crude throughput of 6.33 MMT and an average capacity utilization of 106%. Bina Refinery's GRM for the year 2016-17 stood at US$ 11.80 per barrel with an overall Gross Margin of Rs. 3,624 Crores.

During the year 2016-17, BORL has achieved sales of 5.53 MMT as against 6.13 MMT in the previous year. The Company has reported Revenue from Operations of Rs. 27,059.03 Crores in the financial year ended as on 31st March, 2017 as compared to Rs. 26,028.32 Crores recorded in previous financial year. The EPS for the year stood at Rs. 3.49 as against Rs. 1.67 in 2015-16. The net profit for the year 2016-17 stood at Rs. 808.13 Crores as compared to Rs. 375.47 Crores in the previous year.

PETRONET LNG LIMITED (PLL)

PLL was formed in April, 1998 for importing LNG and setting up LNG terminal with facilities like jetty, storage, regasification etc. to supply natural gas to various industries in the country. The company has an authorised capital of Rs. 1200 Crores and paid up capital of Rs. 750 Crores. PLL was promoted by four public sector companies' viz. BPCL, Indian Oil Corporation (IOC), Oil and Natural Gas Limited (ONGC) and Gas Authority of India Limited (GAIL). Each of the promoters holds 12.5% of the equity capital of PLL. PLL is a listed company with public holding 34.80% of the paid up capital of the company. BPCL's equity investment in PLL currently stands at Rs. 98.75 Crores. As at 31st March, 2017, PLL had net worth of Rs. 8,093.89 Crores.

PLL recorded consolidated Revenue from Operations of Rs. 24616.03 Crores in the financial year ended as on 31st March, 2017 as compared to Rs. 27133.43 Crores recorded in 2015-16. The net profit for the year stood at Rs. 1723.13 Crores as compared to Rs. 927.85 Crores in the previous year. The EPS for the year 2016-17 amounted to Rs. 22.98 as compared to Rs. 12.37 in 2015-16. PLL has declared the dividend of Rs. 5 per share for the financial year 2016-17 as against a dividend of Rs. 2.50 per share during earlier year. PLL has declared issue of bonus shares in the ratio 1:1 during the year 2016-17.

INDRAPRASTHA GAS LIMITED (IGL)

IGL a Joint Venture Company with GAIL, as the other co-promoter was set up in December 1998 with an authorised capital of Rs. 220 Crores for implementing the project for supply of Compressed Natural Gas (CNG) to the automobile sector and Piped Natural Gas (PNG) to households in Delhi. The paid up Share Capital of the Company is Rs. 140 Crores. BPCL invested Rs. 31.50 Crores in IGL for 22.5% stake in its equity. IGL is a listed company with public holding of 55% of the paid up share capital of the company. As on 31.03.2017, IGL has 421 CNG stations in Delhi and NCR. IGL has more than 7.4 lakhs domestic PNG customers in Delhi and NCR. The Company is also extending its business in geographical area of Rewari in Haryana. IGL holds 50% of equity in M/s Central UP Gas Limited, Kanpur & M/s. Maharashtra Natural Gas Limited, Pune, Joint Venture Companies promoted by BPCL and GAIL.

IGL has registered Consolidated Revenue from Operations of Rs. 4,222.51 Crores and a profit after tax of Rs. 606.34 Crores for the financial year ending 31st March 2017 as compared to a turnover of Rs. 4,064.21Crores and a profit after tax of Rs. 457.88 Crores in the previous year.The consolidated EPS for the year stood at Rs. 43.31 as against Rs. 32.71 in 2015-16. IGL has paid an interim dividend of Rs. 3.50 during 2016-17 and proposed to pay a final dividend of Rs. 5 per share against Rs. 6 paid in the previous year. IGL's net worth was Rs. 2,926.56 Crores as at 31st March 2017.

SABARMATI GAS LIMITED (SGL)

SGL, a Joint Venture company promoted by BPCL and Gujarat State Petroleum Corporation (GSPC) was incorporated on 6th June 2006 with an authorized capital of Rs. 100 Crores for implementing the City Gas distribution project for supply of CNG to the household, automobiles, industrial and commercial sectors in the district of Gandhinagar, Mehsana, Aravali, Sabarkantha and Patan of Gujarat. The paid up share capital of the Company is Rs. 20 Crores.

As at 31.3.2017 BPCL has a stake of 49.94% in the equity capital of SGL. SGL has set up 56 CNG stations. SGL has achieved Revenue from Operations of Rs. 687.49 Crores and a net profit of Rs. 42.56 Crores for the financial year ending 31st March 2017 as against Rs. 746.90 Crores and Rs. 0.63 Crores respectively for the previous year. The EPS for the year stood at Rs. 21.27 as against Rs. 0.31 in 2015-16. The company has proposed a dividend of Rs. 2/- per share on equity shares for the financial year ending 31st March 2017.

CENTRAL UP GAS LIMITED (CUGL)

CUGL is a Joint Venture Company set up in March 2005 with GAIL as the other partner for implementing the project for supply of CNG to the household, industrial and automobile sectors in Kanpur and Bareilly in Uttar Pradesh. The Company was incorporated with an authorised share capital of Rs. 60 Crores. The joint venture partners have each invested Rs. 15 Crores for an equity stake of 25% each in the company, balance 50% being held by Indraprastha Gas Ltd. CUGL has set up 19 CNG stations.

CUGL has achieved Revenue from Operations of Rs. 240.61 Crores and net profit of Rs. 48.49 Crores for the financial year ending 31st March 2017 as against Rs. 221.29 Crores and Rs. 32.87 Crores respectively for the previous year. The EPS for the year stood at Rs. 8.06 as against Rs. 5.50 in 2015-16. Interim dividend of Rs. 0.80 per share has been given by CUGL. The Board of Directors has recommended the payment of final dividend at Rs. 1.70 per share for the current year as against Rs. 1.40 in the previous year.

MAHARASHTRA NATURAL GAS LIMITED (MNGL)

MNGL was setup 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 Crores. The paid up capital of the Company is Rs. 100 Crores. BPCL and GAIL have invested Rs. 22.50 Crores each in MNGL's equity capital. MIDC, as a nominee of Maharashtra Govt. has taken 5% equity in the month of June 2015. Balance 50% is held by IGL, our joint venture company. The company has set up 42 CNG stations so far.

MNGL has achieved Revenue from Operations of Rs. 535.83 Crores and profit of Rs. 76.56 Crores for the financial year ending 31st March, 2017 as against Rs. 507.84 Crores and profit of Rs. 75.66 Crores respectively in the previous year. The EPS for the year stood at Rs. 7.66 as against Rs. 7.65 in 2015-16. The MNGL board has proposed final dividend of Rs. 1.26 per equity share, in addition to the interim dividends paid amounting to Rs. 1.04 per equity share for the financial year ending 31st March 2017 as against Rs. 1.50 per share declared in the previous year.

HARIDWAR NATURAL GAS PRIVATE LIMITED (HNGPL)

BPCL has signed a Joint Venture Agreement with GAIL for implementation of City Gas Distribution Project in the geographical area of Haridwar and formed a Joint Venture Company Haridwar Natural Gas Pvt Ltd. on 50:50 basis. The HNGPL was incorporated on 20th April 2016. So far BPCL has contributed Rs. 7.50 Crores as Equity Contribution.

GOA NATURAL GAS PRIVATE LIMITED (GNGPL)

BPCL has signed a Joint Venture Agreement with GAIL for implementation of City Gas Distribution Project in North Goa and formed a Joint Venture Company Goa Natural Gas Pvt. Ltd. on 50:50 basis. The GNGPL was incorporated on 13.1.2017. So far BPCL has contributed Rs. 2.50 Crores as Equity Contribution.

BHARAT STARS SERVICES PRIVATE LIMITED (BSSPL)

Bharat Stars Services Pvt. Ltd (BSSPL.) a Joint Venture Company promoted by BPCL and ST Airport Pte Limited, Singapore was incorporated in September 2007, for providing into plane fuelling services at the New Bengaluru International Airport. The authorised and paid up share capital of BSSPL is Rs. 20 Crores.

The two promoters have each subscribed to 50% of the equity share capital of BSSPL and BPCL's present investment stands at Rs. 10 Crores. The company commenced its operation at new international airport in Bengaluru from May 2008 and has also incorporated a wholly owned subsidiary Bharat Stars Services Pvt. (Delhi) Ltd. for implementing Into Plane Fuelling services exclusively at the new T3 Terminal of Delhi International Airport.

BSSPL is presently providing Into Plane (ITP) Services at three open access airports viz. Bengaluru, Mumbai Airport & Delhi T3 Airport. It also has taken over the complete operatorship of 2 BPCL AFS at Jaipur and Durgapur. In addition, BSSPL also provides ITP Services to BPCL at Calicut, Chennai,Vizag and Delhi T1 Airport. BSSPL has achieved a turnover of Rs. 35.53 Crores and profit of Rs. 5.83 Crores for the financial year ending 31st March, 2017 as against Rs. 29.53 Crores and profit of Rs. 4.32 Crores respectively for the previous year. The EPS for the year stood at Rs. 2.90 as against Rs. 2.18 in 2015-16. The Board has recommended a dividend of Rs. 0.50 per equity share for the financial year ending 31st March 2017 as against Rs. 0.25 per equity share last year.

DELHI AVIATION FUEL FACILITY PRIVATE LIMITED (DAFFPL)

A Joint Venture Company, Delhi Aviation Fuel Facility Pvt. Limited has been promoted by BPCL, IOCL and Delhi International Airport Limited (DIAL) for implementing open access Aviation Fuel facility for the new T3 terminal at Delhi International Airport. The authorized and paid up share capital of the company is Rs. 170 Crores and Rs. 164 Crores respectively. BPCL and IOCL each have subscribed to 37% of the share capital of the joint venture while the balance 26% has been held by DIAL.

DAFFPL has registered a Revenue from Operations of Rs. 117.09 Crores and net profit of Rs. 38.34 Crores for the financial year ending 31st March 2017 as against Rs. 110.85 Crores and net profit of Rs. 34.00 Crores respectively during the previous year. The EPS for the year stood at Rs. 2.34 as against Rs. 2.07 in 2015-16. The company has proposed dividend of Rs. 2 per share for the financial year ending 31st March 2017 as against Rs. 3.30 paid during the previous year.

MUMBAI AVIATION FUEL FARM FACILITY PRIVATE LIMITED (MAFFFPL)

BPCL has signed a Joint Venture Agreement with IOC, HPC & Mumbai International Airport Ltd (MIAL) for implementing & managing Fuel farm facilities at Mumbai Airport and formed Mumbai Airport Fuel Farm Facility Pvt Ltd (MAFFFPL) Joint Venture Company with equal participation of 25% each.

Presently, BPCL has invested an amount of Rs. 38.27 Crores towards equity so far. Company has started its operation from 1st February, 2015.

MAFFPL has registered a Revenue from Operations of Rs. 119.55 Crores and net profit of Rs. 26.58 Crores for the year ending 31.3.2017 as against Rs. 112.11 Crores and net profit of Rs. 18.58 Crores during the previous year. The EPS for the year stood at Rs. 1.74 as against Rs. 1.35 in 2015-16.

KANNUR INTERNATIONAL AIRPORT LIMITED (KIAL)

The Government of Kerala has promoted Kannur international Airport (KIAL) as a public limited company to establish and operate, airports and allied infrastructure facilities at Kannur and/or other parts of India. KIAL would initially set up an Airport at Kannur in the state of Kerala at an estimated project cost of Rs. 1,892 Crores of which Rs. 1,000 Crores will be financed through equity and the balance sum of Rs. 892 Crores will be financed by way of borrowings. The paid up share capital of the Company as at 31.3.17 is Rs. 987 Crores.

BPCL has made a contribution of Rs. 204.23 Crores out of the total contribution sanctioned by BPCL Board amounting to Rs. 216.80 Crores for 21.68% equity stake in the company.

As on 31st March 2017, the physical progress with respect to Airside Works is 93% and Passenger Terminal Building Works is 84%.

MATRIX BHARAT PTE LIMITED (MXB)

MXB is a Joint Venture Company incorporated in Singapore on 20th May 2008 for carrying out the bunkering business and supply of marine lubricants in the Singapore market as well as international bunkering including expanding into Asian and Middle East markets. The company has been promoted by BPCL and Matrix Marine Fuels L.P. USA, an affiliate of the Mabanaft group of companies, Hamburg, Germany. The authorised capital of the company is US$ 4 million. The Company has subscribed 20 lakh shares for an equivalent sum of Rs. 8.41 Crores. Both the partners have contributed equally to the share capital. Matrix Marine Fuels L. P. USA has subsequently transferred their share and interest in the joint venture in favour of Matrix Marine Fuels Pte Limited, Singapore another affiliate of Mabanaft group. The name of company has been changed to Matrix Bharat Pte Ltd. MXB has achieved revenue of US$ 263.31million and earned a profit of US$ 2.71 million for year ending 31.12.2016 as against US$ 221.82 million and earned a profit of US$ 1.47 million. MXB had declared a dividend of US$ 0.20 per share for the year 2016 as against US$ 0.30 per share for the previous year.

KOCHI SALEM PIPELINE PRIVATE LIMITED (KSPPL)

BPCL has signed a Joint Venture Agreement with IOC for implementation of Kochi-Coimbatore-Salem LPG pipelines Project and formed a Joint Venture Company viz KSPPL in January,2015. on 50:50 basis. Presently, BPCL has paid an amount of Rs. 55 Crores as advance against equity to JV Company

GSPL INDIA TRANSCO LIMITED (GITL)

BPCL has signed a Joint Venture Agreement on 30th April, 2012 with Gujarat State Petronet Ltd, IOC and HPC for laying of 1747 km for Mallavaram-Bhopal-Bhilwara-Vijaipur (MBBVPL) gas pipeline. BPCL's equity contribution to this project will be 11% of the total equity capital. The other JV partners will contribute GSPL 52%, IOCL 26% and HPC 11%.

BPCL has made initial contribution of Rs. 22.55 Crores so far. Company is in process of acquiring the Right of Way. During the financial year 2016-17, the Company has reported a miscellaneous income of Rs. 1.54 Crores and net profit of Rs. 0.92 Crores as against the income of Rs. 1.30 Crores and net profit of Rs. 0.78 Crores for the previous year.

GSPL INDIA GASNET LIMITED (GIGL)

BPCL has signed a Joint Venture Agreement on 30th April, 2012 with Gujarat State Petronet Ltd, IOC and HPC for laying of gas Pipeline to Mehsana-Bhatinda (MBPL) (Pipeline length 1654 km) and Bhatinda-Jammu-Srinagar (BJSPL) (Pipeline length 460 kms). BPCL's equity contribution to this project will be 11% of the total equity capital. The other JV partners will contribute GSPL 52%, IOCL 26% and HPC 11%.

BPCL has made an equity contribution of Rs. 30.47 Crores so far.

During the financial year 2016-17, the Company has reported a miscellaneous income of Rs. 1.78 Crores and net profit of Rs. 1.08 Crores as against the income of Rs. 1.74 Crores and net profit of Rs. 1.09 Crores for the previous year.

FINO PAYTECH LIMITED (FINO)

BPCL has signed a Subscription Agreement with FINO PayTech Ltd. and Shareholders Agreement with FINO and other Investors on July 29, 2016. Pursuant to the said agreements, BPCL had made an investment of Rs. 251 Crores for a 21.1% stake in FINO PayTech Limited. Final RBI Bank License for FINO Payments Bank (FPB) was received on 30-03-2017.

PETRONET INDIA LIMITED (PIL)

BPCL has 16% equity participation with an investment of Rs. 16 Crores in PIL which was formed as a financial holding company to give impetus to the development of pipeline network throughout the country. PIL has promoted joint venture companies for pipelines viz. Vadinar-Kandla, Kochi-Coimbatore-Karur and Mangalore

– Hassan- Bangalore. PIL registered other income of Rs. 6.21 Crores, exceptional item income of Rs. 61.47 Crores and a net profit of Rs. 59.32 Crores for the financial year ending 31st March, 2017 as against other income of Rs. 1.61 Crores, exceptional item income of Rs. 12.47 Crores and a net profit of Rs. 13.72 Crores during the previous year.

The entire stake of PIL in Joint Venture Companies has been purchased by respective promoter companies' viz. PCCKL stake has been taken over by BPCL, PMHB stake has been taken over by HPCL and ONGC and PVKL stake has been taken over by IOC and RIL. Consequently, the company would be wound up following normal legal process.

BHARAT RENEWABLE ENERGY LIMITED (BREL)

BREL was incorporated on 17th June,2008 for undertaking the production, procurement, cultivation and plantation of the horticulture crops such as Karanj, Jathropha and Pongamia trading research and development and management of all crops and plantation including Biofuels in the State of Uttar Pradesh, with an authorized capital of Rs. 30 Crores. The company has been promoted by BPCL with Nandan Cleantech Limited (Nandan Biomatrix Limited), Hyderabad and Shapoorji Pallonji group, through their affiliate, S.P. Agri Management Services Pvt.Ltd. Company Petition No 5 of 2014 was filed before the Hon'ble High Court of Allahabad (Lucknow Bench) for winding up BREL. By the Order dated 21.12.2015, Mr. Justice Devendra Kumar Upadhyaya ordered that the Company be wound up and official Liquidator to proceed in accordance with the provisions of the Companies Act.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report 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 Management Discussion and Analysis Report are based on certain assumptions and expectations of future events. The Directors cannot guarantee that these assumptions are accurate or these expectations will materialize.

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 been entering into an annual Memorandum of Understanding (MOU) with the Ministry of Petroleum & Natural Gas and has been achieving an "Excellent" performance rating since 1990-91. BPCL has achieved an excellent rating for 2015-16 also with a perfect score of 100%, which is the highest in the Petroleum Sector.

BOARD EVALUATION

The provisions of Section 134 (3)(p) of the Act shall not apply to a Government Company in case the Directors are evaluated by the Ministry, which is administratively in charge of the Company as per its own evaluation methodology. BPCL, being a Government Company, the performance evaluation of the Directors is carried out by the Administrative Ministry (MoP&NG), Government of India, as per applicable Government guidelines.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The provisions of Section 134 (3)(e) of the Act are not applicable to a Government Company. Consequently, details on Company's policy on Directors' appointment and other matters are not provided under Section 178 (3) of the Act; Similarly, Section 197 of the Act shall not apply to a Government Company. Consequently, disclosure of the ratio of the remuneration of each Director to the median employee's remuneration and other such details including the statement showing the names and other particulars of every employee of the Company, who if employed throughout / part of the financial year, was in receipt of remuneration in excess of the limits set out in the Rules are not provided in terms of Section 197 (12) of the Act read with Rule 5 (1) / (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The Chairman & Managing Director and the Whole-time Directors of the Company did not receive any remuneration or commission from any of its Subsidiaries. BPCL, being a Government Company, its Directors are appointed / nominated by the Government of India as per the Government / DPE Guidelines which also include fixation of pay criteria for determining qualifications and other matters.

CORPORATE GOVERNANCE

The Report on Corporate Governance, together with the Auditors' Certificate on compliance of Corporate Governance, is annexed as Annexure D as required under Listing Regulations and Department of Public Enterprises Guidelines of Corporate Governance for Central Public Sector Enterprises.

SOCIAL, ENVIRONMENTAL AND ECONOMIC RESPONSIBILITIES AND BUSINESS RESPONSIBILITY REPORT

The Corporation is committed to be a responsible Corporate Citizen in 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 has adopted and delegated to the Sustainability Committee the implementation of a Business Responsibility Policy based on the principles of National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business as issued by the Ministry of Corporate Affairs, Government of India. BPCL's Sustainability Report is in accordance with the Global Reporting Initiative (GRI).

As stipulated under the Listing Regulations, the Business Responsibility Report describing the initiatives taken by the Company from the environmental, social and governance perspective is attached as part of the Annual Report.

Transactions with Related Parties

During the Financial Year, the Corporation has entered into contracts or arrangement with related parties, which were in the ordinary course of business and on an arm's length basis. These transactions are not falling under the provisions of Section 188(1) of the Act.

Information on transactions with related parties are provided in Annexure F in Form AOC-2 in accordance with Section 134(3) of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014).

In terms of Listing Regulations and Policy of the Corporation on materiality of related party transactions, transaction entered into with Bharat Oman Refineries Limited, a Joint Venture Company could be considered material. This transaction is being placed for approval of the shareholders.

The Policy on materiality of related party transactions and dealing with related party transactions are available on the Corporation's website at the link https://bharatpetroleum.com/images/files/RPTPolicy_ BPCL.pdf

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Corporation has provided Loans/Guarantees to its Subsidiaries/Joint Ventures and has made Investments in compliance with the provisions of the Companies Act, 2013. The details of such investments made and loans/guarantees provided as on 31st March, 2017, are given in the notes to the standalone financial statements and in Disclosures under Regulation 34 of SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 in Annexure H.

RISK MANAGEMENT

The Risk Management Committee of the Board has defined roles and responsibilities which includes reviewing and recommending of the risk management plan and reviewing and recommending the risk management report for approval of the Board with the recommendation by the Audit Committee. The Audit Committee evaluates internal financial controls and risk management systems. The

Company has adopted a Risk Management Charter and Policy for self regulatory processes and procedures for ensuring the conduct of the business in a risk conscious manner.

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 31st March, 2017, 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 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 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

Shri S. Varadarajan, Chairman & Managing Director, superannuated at the close of office hours on 30.9.2016. The Directors have placed on record their deep appreciation on behalf of the Board for the valuable contributions made and guidance given by him for the development and progress of the Company's business. Shri B.K. Datta, Director (Refineries) superannuated at the close of office hours on 31.7.2016. Shri P. Balasubramanian, Director (Finance) superannuated at the close of office hours on 30.4.2017. Shri P.H.Kurian, Principal Secretary (Industries & IT), Govt. of Kerala relinquished the office of Director on 18.4.2017.

The Directors have placed on record their deep appreciation on behalf of the Board for the valuable contributions made and guidance given by them for the development and progress of the Company's business.

Shri D. Rajkumar was appointed as Additional Director and as Chairman & Managing Director with effect from 1.10.2016. As he has been appointed as Additional Director, he will hold office till the ensuing Annual General Meeting. Notice under Section 160 of the Act has been received proposing his name for appointment as Director at the ensuing Annual General Meeting.

Shri K. Sivakumar was appointed as Additional Director and as Director (Finance) with effect from 1.5.2017. As he has been appointed as Additional Director, he will hold office till the ensuing Annual General Meeting. Notice under Section 160 of the Act has been received proposing his name for appointment as Director at the ensuing Annual General Meeting.

Shri Vishal V Sharma was appointed as Additional Director with effect from 9.2.2017. As he has been appointed as Additional Director, he will hold office till the ensuing Annual General Meeting. Notice under Section 160 of the Act has been received proposing his name for appointment as Director at the ensuing Annual General Meeting.

Shri Paul Antony, Additional Chief Secretary (Industries & Power), Govt. of Kerala, was appointed as Additional Director from 19.4.2017. As he has been appointed as Additional Director, he will hold office till the ensuing Annual General Meeting. Notice under Section 160 of the Act has been received proposing his name for appointment as Director at the ensuing Annual General Meeting.

Shri R. Ramachandran was appointed as Additional Director and as a Director (Refineries) with effect from 1.8.2016. The members have appointed him as Director (Refineries) at the Annual General Meeting held on 21.9.2016.

Shri M. Venugopal was appointed as Company Secretary w.e.f. 1.3.2017 in place of Shri Subhash Kulkarni who superannuated on 28.2.2017.

Shri S. Ramesh, Director (Marketing) will retire by rotation at the ensuing Annual General Meeting as per the provisions of Section 152 of the Act and being eligible, have offered himself for re-appointment 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 Annual General Meeting are provided in the AGM Notice.

DECLARATION OF INDEPENDENCE

Independent Directors of the Company have provided declarations confirming that they meet the criteria of independence as prescribed under the Act.

FAMAILIARISATION PROGRAMMES

The Company has adopted a policy for the training requirements of Board Members. The details thereof with the programmes sponsored for familiarisation of Independent Directors with the Company are available at the Company's web link: https://bharatpetroleum.com/ About-BPCL/Our-Policies.aspx

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.

VIGIL MECHANISM

There exists a vigil mechanism to report genuine concerns in the Organisation. The Corporation has implemented the Whistle Blower Policy to ensure greater transparency in all aspects of the Corporation's functioning. The objective of the policy is to build and strengthen a culture of transparency and to provide employees with a framework for responsible and secure reporting of improper activities. The vigil mechanism provides for adequate safeguards against victimisation of persons who use a mechanism and has provision for direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases. The details of establishment of such a mechanism are disclosed in the Company's web link: https://www.bharatpetroleum.co.in/General/Whistle BlowerPolicy.aspxRs.id=4

NUMBER OF MEETINGS OF THE BOARD

Twelve meetings of the Board of Directors were held during the year, the details of which are given in the Corporate Governance Report that forms part of this Report. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013 and the Listing Regulations.

EXTRACT OF ANNUAL RETURN

As required under Section 92 (3) of the Act, extract of Annual Return of the Company is annexed herewith in specified Form MGT-9 as Annexure G to this Report.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The details are included in the Management, Discussion & Analysis Report which forms part of this Report.

STATUTORY AUDITORS

M/s. CNK & Associates LLP, Chartered Accountants, Mumbai and M/s. Haribhakti & Co. LLP, Chartered Accountants, Mumbai, were appointed as statutory auditors for the year 2016-17, by the Comptroller & Auditor General of India (C&AG), under the provisions of Section 139(5) of the Companies Act, 2013. They will hold office till conclusion of the ensuing Annual General Meeting. The Auditors' Report does not contain any qualification, reservation or adverse remark.

COST AUDITORS

The Cost Audit Report for the year 2015-16 has been filed with the Ministry of Corporate Affairs on 28.09.2016 in XBRL Format. The due date for filing the Cost Audit Report was 27.10.2016. The Cost Auditors for the Financial Year 2015-16 were M/s. Rohit & Associates, Mumbai and M/s. Musib & Company, Mumbai.

The Cost Auditors appointed for the year 2016-17 are M/s ABK & Associates, Mumbai and M/s Bandyopadhyaya Bhaumik & Company, Mumbai. The Cost Auditor, shall within a period of 180 days from the closure of the financial year, forward the Cost Audit Report and the Corporation is required to file the Cost Audit Report within 30 days of receipt of the same. M/s. ABK & Associates, Mumbai, Cost Accountants, were nominated as the Corporation's Lead Cost Auditor.

SECRETARIAL AUDITOR

The Board has appointed M/s Ragini Chokshi & Company, Company Secretaries to conduct Secretarial Audit for the financial year 2016-17. The Secretarial Audit Report for the financial year ended 31st March, 2017 is annexed herewith in Annexure I to this Report.

The Secretarial Audit Report does contain an observation that "The Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards mentioned therein except for non-compliance under Regulations 17 (1) (a)/(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Section 149(1) of the Companies Act, 2013 and in terms of clause 2.2 and 3.1.4 of the guidelines issued by DPE relating to the condition of having at least one Woman Director and half of the Board of Directors shall comprise of Independent Directors, which were not met with during the period". Explanations by the Board to the above observation in the Secretarial Auditor Report: BPCL is a Government Company under the Administrative Control of Ministry of Petroleum and Natural Gas. The Government of India makes nomination / appointment of all categories of Directors in accordance with the laid down Department of Public Enterprises Guidelines. The subject matter of nomination / appointment of adequate number of Independent Directors including Woman Director falls under the purview of the Government of India.

We have taken up the matter with the Ministry of Petroleum & Natural Gas and necessary actions are being initiated to fulfill the requirements and nominations for adequate number of Independent Directors are awaited.

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/ Employees Stock Options. During the year under review, there were three complaints of sexual harassment in respect of our employees, first from an employee of a contractor, second from an Industrial Trainee and third from the proprietor of a retail outlet.

As far as complaints raised by the contract labour and the proprietor of retail outlet are concerned, the matters were taken up by the respective Internal Complaints Committee. The investigations with respect to the matters were completed and on the basis of the recommendations of the Committees, disciplinary proceedings have been initiated against the concerned individual employees, which are currently under progress.

In respect of the complaint raised by the Industrial Trainee, the matter was taken up by the Internal Complaints Committee. The Internal Complaints Committee has submitted its report in the matter and future course of action is under contemplation.

ACKNOWLEDGEMENTS

The Directors express their earnest appreciation for the untiring efforts of every employee of the Organisation without which BPCL would not have been able to achieve the challenging targets in all areas of operations. All the Ministries of the Government of India, particularly the Ministry of Petroleum & Natural Gas and State Governments have supported BPCL's progress as well. The continued support of all stakeholders, including members, customers, dealers, distributors, vendors, contractors and other business partners, provided added impetus to the Corporation's progress.

The Directors affirm to remain persistent to their focus on customer centric offerings to enhance stakeholder value.

For and on behalf of the Board of Directors
Sd/-
D. Rajkumar
Chairman & Managing Director
Place: New Delhi
Date: 09.08.2017

ANNEXURE A

Particulars in regard to Conservation of Energy, Technology Absorption, and Foreign Exchange Earnings and Outgo pursuant to the Companies (Accounts) Rules, 2014

A. CONSERVATION OF ENERGY

(i) Steps taken or impact on conservation of energy

Energy conservation efforts received continuous focus and are one of the key focus areas of BPCL Refineries, both in terms of improvement in operations/maintenance as well as development of new projects. Continuous monitoring of energy consumption and hydrocarbon loss is undertaken using sophisticated instruments, periodical audits, global benchmarking and data acquisition system. Elaborate and systematic energy accounting and Management Information Systems are the hallmark of Refinery operations.

As a part of Oil & Gas Conservation Campaign 2017, M/s. Centre for High Technology had organized a detailed "Steam Leak & Boiler Efficiency Survey" in the Refineries along with industry experts. In addition, various awareness programs on the Oil Conservation theme were conducted, both inside & outside the refinery.

Besides excellence in the refining process, Mumbai Refinery is keenly focusing on areas of energy conservation and environment management.

MUMBAI REFINERY

The following energy conservation and loss control measures were adopted by Mumbai Refinery during the year 2016-17 which have resulted in significant fuel savings:

• Sustained operation of heat integrated, energy efficient, state-of-the-art CDU 4 unit throughout the year.

• Use of energy saving LED lamps.

• Survey of PSV/PCV to identify passing valves and rectification to reduce flare loss.

• Periodical Survey of Compressed air and Nitrogen leaks and rectification.

• Implementation of Advance Process Control (APC) schemes in CDU 4, NHT, CCR units.

• Implementation of Advance Process Control (APC) in High Efficiency Boilers (HEB) and "Online Utility Planner and Optimizer", a first of its kind in the country.

• Implementation of "Steam Trap & Leak Management" project to achieve zero steam leaks in RMP Complex.

• Provision of Plate Type heat exchangers for Sour Water Stripper (SWS) and Amine Treating Unit (ATU) during turnaround (March 2016) to reduce steam consumption in reboilers.

• Augmentation of heat exchanger network in CDU 3 for improved heat recovery to overcome process bottleneck (Implementation of pinch study recommendation).

• Pinch Analysis study to improve pre-heat of crude in CDU 3 (Revamp).

• Replacement of conventional steam ejector in VDU 3 by LRVP arrangement.

• Installation of Condensate recovery in BBU.

• Replacement of ETP Blower with latest PM blower for power saving.

• Double Wall Column (DWC) has been commissioned, as part of ISOM unit, to achieve significant reduction in energy consumption.

Relentless efforts towards energy conservation on a sustained basis have resulted in significant saving of energy and natural resources. BPCL Mumbai Refinery has a very robust and effective Energy Management System (ENMS) accredited with ISO 50001:2011 certification and is one of the first refineries to achieve this landmark certification in India.

KOCHI REFINERY

During the year 2016-17, Kochi Refinery implemented a number of projects focused on energy conservation and loss control. Through these projects, reduction in steam consumption, heat recovery and savings in power and fuel could be achieved. The highlights are given below:

• Reduction of HP steam consumption through decreasing the minimum governing speed of Recycle Gas Compressor anti-surge control valve in VGO HDS unit.

• Commissioning of heat recovery from CDU 3 overhead vapors as crude preheat improvement.

• Stopping a few fin fan coolers, pumps and air blowers resulting in power saving.

• Reduction of minimum circulation flow in certain streams.

• Heat recovery by DM water addition in condensate recovery system in VGO-SRU resulting in fuel savings.

• Reducing reboiler steam in Sour Water Stripper column and reducing purge steam to burners.

(ii) The steps taken by the Company for utilizing alternate sources of energy Mumbai Refinery

Duringthe Financial Year2016-17,solarpowergenerationwas53681 KWHR. Newfacilities capable of generating 330 KWHR are being pursued.

Kochi Refinery

As part of our commitment to improve utilization of renewable sources of energy, KR installed 36 nos. of Solar Day-lighting systems in its Main Warehouse. This could help in switching off fluorescent tubes resulting in annual power savings to the tune of 16 MWHR.

(iii) The capital investment on energy conservation and estimated savings:

Mumbai Refinery

Sr. No. Details of energy conservation equipments and division Capital investments in ' Crores Energy savings (type; unit; total amount; rate / unit) Remarks, if any
1 Replacement of steam ejector by vacuum pump in crude distillation unit (LRVP). Part of RMP Revamp Steam savings=40 MT/D (Rate = '2,180/ MT) Steam Consumption reduced
2 Heat Recovery from diesel stream in HCU - provision of steam generator Part of RMP Revamp Steam savings=125 MT/D (Rate = '2,180/ MT) Due to heat integration
3 Steam leak & steam trap management in RMP complex 3.5 Steam savings=120 MT/D (Rate = '2,180/ MT) Steam Loss reduced
4 Provision of Plate type heat exchangers in ARU & SWS 2.9 Steam savings=55 MT/D (Rate = '2,180/ MT) Steam Consumption reduced
5 Provision of PM blower in ETP 1.2 Power savings=100 KWHR (Import Power rate = '9.34 /KWHR) Power consumption reduced
6 Provision of LED bulbs for lighting 0.44 Power savings=50 KWHR (Import power rate = '9.34 /KWHR) Power consumption reduced
7 Maximize heat recovery and energy conservation during the design of new projects such as ISOM/DHT. Divided wall column has been used in the design of ISOM unit to save energy ISOM Project Fuel Savings = 14 MT/D (Rate = ' 18,712/ MT) Fuel consumption in furnace reduced
8 Commissioning of Advance process control in CCR in Reactor circuit 4 LSHS Saving = 6.5 MT/D (Rate = '18,712 /MT) Fuel & Steam consumption reduced
9 Advance process control in Boilers & Aspen Utility Planner 2.1 LSHS savings = 2.3 MT/D (Rate = '18,712 /MT) Due to reduction of steam header pressure & excess O2 to boiler

Kochi Refinery

Sr. No. Details of energy conservation equipments and division Capital investments in ' Crores Energy savings (type; unit; total amount; rate / unit)
1 Reduction of HP steam consumption by 1.45 MT/HR through decreasing the minimum governing speed of VGO HDS RCG Compressor anti-surge control valve. Nil Fuel, 909.55 MT/year, '140.9 lacs/year, ' 15,491/MT
2 Commissioned heat recovery from CDU 3 overhead vapors as crude preheat improvement resulting in fuel saving of 1.97 MT/HR. 4.07 Fuel, 2,479.76 MT/year, ' 384.13 lacs/year, '15,491/MT
3 Stopped VH-E-12 B (stripper overhead fin fan) in VGO HDS unit resulting in power saving of 24.4 KWHR. Nil Electricity, 202.03 MW, '18.26 lacs/year, ' 9.04/KWHR
4 Reduced VH-P-03 minimum circulation flow from 125 to 100 MT/HR resulting in power saving of41.1 KWHR. Nil Electricity, 340.31 MW, '30.76 lacs/year, '9.04/KWHR
5 Stopped one FD fan in VGO HDS heaters VHH01/2 resulting in power saving of 24.4 KWHR. Nil Electricity, 202.03 MW, '18.26 lacs/year, '9.04/KWHR
6 Operating single combustion air blower among DSC 001 A/B/C in DHDS unit resulting in power saving of 165.18 KWHR. Nil Electricity, 1,321.44 MW, '119.46 lacs/year, '9.04/KWHR
7 Stopping second LSD pump in DHDS unit resulting in power saving of 77.74 KWHR. Nil Electricity, 621.92 MW '56.22 lacs/year, '9.04/KWHR
8 Reducing VH-P-10 C minimum circulation flow from 21 to 16.5 MT/HR resulting in power saving of 20.6 KWHR. Nil Electricity, 170.57 MW, '15.42 lacs/year, '9.04/KWHR
9 Stopping VW-EA 11A (SWS 2nd column pump around fin fan cooler) resulting in power saving of 18.96 KWHR. Nil Electricity, 157.07 MW, '14.2 lacs/year, '9.04/KWHR
10 Reduced reboiling steam (LP) in VW-V-02 (VGO SWS 2nd column) from 2.6 to 1.8 MT/HR. Nil Fuel, 463.22 MT/year, ' 71.76 lacs/year, '15,491/MT
11 Replacing conventional lighting in plants, Control Rooms, substations, and office rooms resulting in power saving of 251.8 KWHR. 0.5855 Electricity, 919.07 MW, '83.08 lacs/year, '9.04/KWHR
12 Heat recovery by DM water addition in condensate recovery system in VGO SRU resulting in .025 MT/HR of fuel savings. Nil Fuel, 207 MT/year '32.07 lacs/year '15,491/MT

B. TECHNOLOGY ABSORPTION MUMBAI REFINERY

(i) The efforts made towards technology absorption and (ii) the benefits derived like product improvement, cost reduction, product development or import substitution

1. CCG Gasoline stream filter (G002 A/B) commissioned and processed gasoline heavy cut for the first time in NHT/CCR resulting in additional feed of 200 MT per day to CCR during RMP turnaround.

2. CDU 4 APC has been successfully commissioned on 27th December, 2016. There are 8 controllers in the unit as all the controllers are on. Pass balancing in CDU heater has resulted in reducing the deviation (of 8 passes) to 2oC as compared to difference of 10oC. earlier in CDU heater.

3. Benefits of implementation of APC in Boiler House are approx.' 1.32 lakhs/day. This is due to:

i) Reducing the steam header pressure by 0.1 Kg leads to a savings in fuel oil consumption of ~4 MT/D.

ii) The average excess 02 has reduced from 5.84% average baseline to 3.38% post APC control, equivalent to 4.2 MT/D

4. Divided wall column was provided instead of conventional column in ISOM unit which resulted in saving of 300 MT/D of steam

(ii) In case of imported technology (imported during last three years reckoned from beginning of the financial year)

(a) The details of Technology imported; and (b) the year of Import

Technology Year of Import
• NHT / CCR unit licensed by M/s. Axens IFP Group Technologies, France 2009
• NHT / ISOM unit licensed by M/s. GTC Technology, USA 2013
• LRVP in Vacuum column of two crude units 2016

(b) Has technology been fully absorbedRs.

Yes.

(c) If not absorbed, areas where this has not taken place, reasons thereof and future plans of action.

Not Applicable.

KOCHI REFINERY

(i) The efforts made towards technology absorption and (ii) the benefits derived like product improvement, cost reduction, product development or import substitution

1. CLO Filter in FCCU: Kochi Refinery is the first Indian PSU refinery to install the Clarified Oil (CLO) filtration system supplied by the General Atomics Group USA. The CLO filtration is designed to reduce the catalyst fines content in FCCU CLO productfrom 4000 ppm to 100 ppm so as to route the CLO product directly to the Plant Fuel tanks.

2. Autoloader in FCCU: FCCU auto catalyst loader system was commissioned on 31st March 2017. The system was supplied by M/s Intercat and is designed to add FCCU fresh catalyst on a continuous basis to the regenerator for maintaining the activity of the system inventory. This system design gives the refiner all the benefits of a reliable, low maintenance, extremely accurate catalyst addition system with the minimum of moving parts for maximum reliability.

3. Octane booster trial in MS: Octane booster trial was conducted at Kochi Refinery and the economic benefit was evaluated. After successful trial, the economic benefit observed that the cost of Naphtha upgraded through the trial was ' 1.11/Litre higher than the RTP of MS, considering the marketing margin of ' 1.69 /Litre for MS.

(ii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year)

(a) The details of technology imported: and (b) the year of import

Tec hnology Year of Import
VGO HDT Unit licensed by M/s Shell Global, USA 2013
ii. TGT Unit licensed by M/s CB&I, USA 2013
iii. NHT ISOM Unit licensed by M/s UOR USA 2013
iv. Hydrogen Generation Unit licensed by M/s Technip KTI, Netherlands, build own and operate by M/s Air Products, USA 2013 (*)
v. Nitrogen/ Oxygen Generation Unit licensed by M/s Air Products, USA 2013 (*)
vi. Acrylic Acid Unit licensed by M/s Air Liquide E&C, Germany 2016
vii. Oxo Alcohol Unit licensed by M/s JM Davy Process Technology, UK 2016
viii. Acrylates Unit licensed by M/s Mitsubishi Chemical Corporation, Japan 2016

(*) Units erected on Build Own and Operate (BOO) basis by M/s Air Products, USA

(b) Has the technology been fully absorbed Rs.

Technologies (i) to (ii) have been fully absorbed.

Technology (iii) is under commissioning stage. Technologies (vi) to (viii) are for the Propylene, Derivative, Petrochemical Project which are under construction stage.

(c) If not absorbed, areas where absorption has not taken place, reasons thereof and future plans of action,

Not applicable.

iii. Expenditure on R&D during 2016-17

Expenditures 2016-17
Capital Expenditure 16.70
Revenue / Recurring Expenditure 32.78
Total 49.48

RESEARCH & DEVELOPMENT (R&D)

1. Specific areas in which R&D has been carried out by the Company :

1. Development of Aromatic Free Solvent.

2. Development of indigenous desalter technology.

3. Development of CFD model for CCU reactor to address fluid flow related issues.

4. Development of novel Cross-Flow Hydroprocessing Reactor configuration.

5. Development of advanced real time dynamic model and soft sensors development for monitoring and online optimization.

6. Development of Divided Wall Column (DWC) technology.

7. Development of viscosity correlation models.

8. Development of Drag Reducing Agent (DRA) formulations.

9. Development of process for olefins maximization through FCCU.

10. Development of Bharat Neutrachem (Corrosion inhibitor for column overhead systems).

11. Development of catalyst for slurry phase residue hydroprocessing.

12. Development of Coke and fouling mitigation strategies while processing waxy/non waxy / asphaltenic / non asphlatenic crude oils.

13. Development of cost effective Gasoline Sulphur reduction additive for FCCU.

14. Development of Diesel lubricity improver additive.

15. Development of indigenous cost effective dewaxing catalyst for LOBS production.

16. Development of superabsorbent polymers.

17. Development of catalyst and process for hydro conversion of vegetable oil to diesel and jet fuels.

18. Development of catalyst for Hydrodesulfurization of Light gas oil feed.

19. Development of Biodegradable lubricants for cutting oil application.

20. Process for production of white oils.

21. Gasification & Pyrolysis of coal/biomass.

22. Benzene valorization through niche chemical production.

23. Valorization of Petroleum Sludge.

24. High Performance Engine oil for 4 Stroke 2 Wheelers.

25. Low Viscometrics Synthetic Engine oil for High performance passenger cars.

26. Eco-friendly Granite Cutting oil.

27. Screw Compressor oil.

28. Defence specific oil.

29. Alternate formulations for existing products.

2. Benefits derived as a result of the above R&D

1. For quick prediction of refining characteristics of crude oils, an intelligent device (dongle) named BP MARRK TM has been launched based on innovative methodology. It minimizes the time required to predict or estimate the assay composition of any hydrocarbon stream. BP MARRK TM has been presented to ASTM for its usage as a new standard for crude oil yield estimation.

2. Novel DWC configuration has been developed for effective naphtha splitting, which is capable of providing high quality feed to the ISOM and CCR units. This offers higher separation efficiency and high Octane barrels with low energy penalty.

3. The commercial trial of in-house developed dewaxing catalyst recipe has been planned at MR 12 MT of catalyst has been produced that will substitute imported catalyst inventory at an estimated cost reduction of 200%.

4. Proof of concept for converting benzene to biphenyl via cyclohexylbenzene has been demonstrated. This will offer a more lucrative alternate of Benzene evacuation at refineries.

5. BPCL-CRDC and Sewree-R&D successfully developed biodegradable metal cutting oil formulation using biodiesel as a feedstock. This development would provide an opportunity to valorize bio-diesel while mitigating environmental issues.

6. Gasoline Sulphur Reduction (GSR) catalyst was developed and demonstrated at MR successfully. Process forthe manufacturing of 120 ton catalystfor regular use in MR-FCC is in progress. This will help in addressing the disposal problem of E-Cat.

7. Model development for coke and fouling mitigation while processing waxy/non waxy/asphaltenic/non asphlatenic crude oils, reduced crude oil, vacuum gas oil and vacuum residue is being done. The developed model is envisaged to assist additive selection / process optimization.

8. Development of indigenous desalter technology in collaboration with EIL under CHT sponsored project.

9. Development of novel Cross-flow hydroprocessing reactor configuration wherein multi scale facilities have been developed and cold flow studies are in progress to evaluate hydrodynamic parameters vis-a-vis conventional trickle bed reactor under identical conditions. The developed technology will be superior in terms of conversion, energy efficiency and economics.

10. A novel multi-tubular methanol reactor system for synthesis of methanol from syngas has been designed, fabricated and demonstrated in lab scale. It is planned to undertake scale up activity jointly with participating institutions of India/Australia for further development. This will assist in monetizing flared gases from various sites.

11. Dynamic model in one of the Crude Distilation units (CDU) of MR, Crude Assessor Model and Steady State CDU optimizer model has been developed and demonstrated for MR. Crude Assessor Model and offline Steady state optimization models installed.

12. Drag Reducing Agent (DRA) formulations have been developed as import substitutes for pipeline transport of distillates.

13. High performance engine oil for 4 Stroke 2 wheelers would offer better engine cleanliness to motorcycles and help in generating new business.

14. Low Viscometric Synthetic Engine oil for high performance passenger cars would offer fuel economy benefits thereby preserving precious petroleum resources, besides helping in generating new business.

15. Eco-friendly granite cutting oil is a colourless, odourless product with negligible aromatics and sulphur content; provides better visibility of cutting tools during operation and would offer better lubricity and heat dissipation characteristics during the hardest stone cutting. This would help us in generating new business.

16. Screw compressor oil would deliver excellent oxidation & thermal resistance and exceptional equipment protection, prolonging the life of system components and reliability for Screw air compressors operating under severe conditions and help in generating new business.

17. Defence specific engine oil would expand BPCL's product portfolio of Defence grades and would give Defence another viable option for their new generation vehicles/equipment.

18. Alternate formulation for existing grades would provide operational flexibility, besides reducing the input cost of respective grades.

3. Future R&D Plans

1. Development of effective product and process for diesel additives.

2. Development of delayed coker unit.

3. Development of optimum catalyst dosage for slurry residue hydroprocessing.

4. Development of niche products such as acrylic acid, propylene oxide etc.

5. Development of energy efficient domestic LPG burner.

6. Development of Intensified reactor for bio-diesel/hydroprocessing reactor.

7. Development of biodegradable packages.

8. Production of high-quality white oil for cosmetic and specialty chemicals.

9. Lignocellulosic biomass into value added products.

10. Monetization of associated gas streams into value added products.

11. CO2 capture and valorization from refinery PSA off gas.

12. Enhancement of performance of refinery heat exchanger through tube inserts.

13. Synthetic Lubricants - PAOs / Esters / Glycols - for various futuristic applications.

14. Process improvement in 2nd generation lignocellulosic biomass processing for ethanol production.

15. Valorization of refinery streams and development of additives for reduction of sulphur in petcoke.

16. Valorization of used Lubes & Greases and Cutting Oils.

17. Valorization of VGO to Naphthenic base stocks.

18. Selection and regeneration of potential ionic liquid for hydroprocessing.

19. On-purpose butadiene production from n-butane.

20. High Performance Engine oil compatible with Ethanol blended petrol (up to E85) for4 Stroke 2 wheelers.

21. Synthetic Engine oil for High performance passenger cars.

22. High performance Hydraulic Oil.

23. Cutting oil for new generation materials.

24. Fully synthetic transmission fluid for passenger cars.

25. Water resistant grease for Industrial applications.

26. Alternate formulations for existing products.

C) Foreign Exchange Earnings/Outgo

The details of foreign exchange earnings & outgo are given below:- (Rs. in Crores)

2016-17 2015-16
Earnings in Foreign Exchange 9,788.58 7,137.95
- Includes receipt of '1,277.23 Crores (previous yearRs. 1,003.91 Crores) in Indian currency out of the repatriable funds of foreign airline and Rs. 54.54 Crores (previous yearRs. 53.93 Crores) of INR exports to Nepal and Bhutan of I&C and Lubes Customers
Foreign Exchange Outgo 62,084.76 50,701.31
- on account of purchase of Raw Materials, Capital Goods, Chemicals, Catalysts, Spare Parts, International Trading Activities

ANNEXURE C

ANNUAL STATEMENT SHOWING THE REPRESENTATION OF SCHEDULED CASTES(SC), SCHEDULED TRIBES(ST) AND OTHER BACKWARD CLASSES(OBC) AS ON 1st JANUARY, 2017 AND NUMBER OF APPOINTMENTS MADE DURING THE PRECEDING CALENDAR YEAR 2016

NAME: BHARAT PETROLEUM CORPORATION LIMITED

Groups

Representation of SCs/STs/OBCs

Number of appointments made during the calendar year 2016

(As on 1.1.2017)

By Direct Recruitment

By Promotion

By Other Methods

Total number of Employees SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Group-A 5967 936 372 915 452 63 29 101 58 6 - 3* - - 1
Group-B 2637 378 135 257 - - - - 141 16 3 3** - - -
Group-C 2209 340 140 403 30 3 2 18 97 15 2 - - - -
Group-D(Excluding Safai Karamcharis) 1752 327 133 262 58 6 2 40 - - - - - - -
Group-D (Safai Karamcharis) 2 2 - - - - - - - - - - - - -
Total 12567 1983 780 1837 540 72 33 159 296 37 5 6 - - 1

* 3 Sportspersons recruited in Group 'A'

** 3 Sportspersons recruited in Group 'B'

NAME : BHARAT PETROLEUM CORPORATION LIMITED

Pay Scales (inRs.)

Representation of SCs/STs/OBCs (as on 01.01.2017)

Number of appointments made during the calendar year 2016

By Direct Recruitment

By Promotion

By Other Methods

Total Number of Employees SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
A 24900-50500 1356 187 85 319 443 63 29 100 58 6 - 3* - - 1
B 29100-54500 1277 178 80 260 7 - - 1 - - - - - - -
C 32900-58000 1185 208 90 190 1 - - - - - - - - - -
D 36600-62000 952 172 71 103 1 - - - - - - - - - -
E 43200-66000 608 135 32 36 - - - - - - - - - - -
F 51300-73000 379 45 14 7 - - - - - - - - - - -
G 51300-73000 126 6 - - - - - - - - - - - - -
H 51300-73000 54 4 - - - - - - - - - - - - -
1 62000-80000 25 - - - - - - - - - - - - - -
J 75000-100000 4 - - - - - - - - - - - - - -
K 80000-125000 1 1 - - - - - - - - - - - - -
TOTAL 5967 936 372 915 452 63 29 101 58 6 0 3 0 0 1

* 3 Sportspersons recruited in Group 'A'

NAME : BHARAT PETROLEUM CORPORATION LIMITED

Groups

NUMBER OF EMPLOYEES (as on 01.01.2017)

DIRECT RECRUITMENT-2016

PROMOTION-2016

NO. OF VACANCIES RESERVED

NO. OF APPOINTMENTS MADE

NO. OF VACANCIES RESERVED

NO. OF APPOINTMENTS MADE

TOTAL VH HH OH VH HH OH TOTAL VH HH OH VH HH OH TOTAL VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
'A' 5967 5 8 69 5 4 4 452 1 2 10 - - - 58 - - 1
'B' 2637 10 5 51 - - - - - - - - - - 141 2 1 2
C1 2209 11 11 20 - - 1 30 - - 1 - - - 97 1 2 -
'D/DS' 1754 4 4 21 1 1 - 58 - - 1 - - - - - - -
TOTAL 12567 30 28 161 6 5 5 540 1 2 12 - - - 296 3 3 3

(i) VH stands for Visually Handicapped (persons suffering from blindness or low vision)

(ii) HH stands for Hearing Handicapped (persons suffering from hearing impairment)

(iii) OH stands for Orthopaedically Handicapped (persons suffering from locomotor disability or cerebral palsy)

There is no reservation for persons with disabilities in case of promotion to Group 'A' and 'B' posts. However, persons with disabilities can be promoted to such posts, provided the concerned post is identified suitable for persons with disabilities.

There are no promotions within Group 'D1.

ANNEXURE F

FORM NO. AOC -2

(Pursuant to clause (h) of sub-section (3)of section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts / arrangements entered into by the Company with related parties referred to in subsection (1) of section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm's length basis

Nil

2. Details of material contracts or arrangement or transactions at arm's length basis

s. No. Name of the Related Party Nature of Relationship Nature of Contract/ Arrangement/ Transactions Duration of the Contract/ Arrangement/ Transactions Salient Terms of the Contracts/ Arrangements/ Transactions Transaction Values in FY 2016-17 (Rs. Crores) Dates of Board Approval Amount Paid as Advances (Rs. Crores)
1 Bharat Oman Refineries Limited (BORL) Joint Venture Company Purchase of Goods 2016-17 Purchase of petroleum products for resale and high sea purchase of Crude Oil 27,712.73 NA -
2 Bharat Oman Refineries Limited (BORL) Joint Venture Company Sale of Goods 2016-17 Import of Crude Oil on behalf of BORL and supplies to them. Also, sale of lubricants 2,144.63 NA -
3 Bharat Oman Refineries Limited (BORL) Joint Venture Company Receiving of Services 2016-17 Interest on the loans provided to BORL 118.69 NA -
4 Bharat PetroResources Limited Subsidiary Company Receiving of Services 2016-17 Interest on the loans provided to BPRL 71.24 NA -
5 Indraprastha Gas Limited (IGL) Associate Company Purchase of Goods 2016-17 Purchase of Compressed Natural Gas for resale at the Retail Outlets 248.16 NA -
6 Indraprastha Gas Limited (IGL) Associate Company Sale of Goods 2016-17 Sale of Liquified Natural Gas / Lubricants. 182.88 NA -
7 Matrix Bharat Pte. Ltd. (MXB) Joint Venture Company Sale of Goods 2016-17 Sale of bunker fuels and export of benzene and FO 1,636.57 NA -
8 Numaligarh Refinery Limited (NRL) Subsidiary Company Purchase of Goods 2016-17 Purchase of petroleum products for resale 12,201.73 NA -
9 Petronet CCK Limited (PCCK) Subsidiary Company Receiving of Services 2016-17 Transportation of petroleum products through PCCK pipeline 109.78 NA -
10 Petronet LNG Limited (PLL) Associate Company Purchase of Goods 2016-17 Purchase of Regassified Liquified Natural Gas for consumption / sale 3,299.44 NA -
11 Petronet LNG Limited (PLL) Associate Company Receiving of Services 2016-17 Regasification of LNG 53.84 NA -
12 Sabarmati Gas Limited (SGL) Joint Venture Company Purchase of Goods 2016-17 Purchase of Compressed Natural Gas for resale at the Retail Outlets 176.02 NA -
13 Sabarmati Gas Limited (SGL) Joint Venture Company Sale of Goods 2016-17 Sale of Liquified Natural Gas 189.21 NA _

Note: The threshold for determining the material transaction has been considered in line with rule no. 15 (3) of Companies (Meetings of Boards and its powers) Rules, 2014. All Transactions are in ordinary course of business and at arm's length.

For and on behalf of the Board of Directors
Sd/-
Place: Mumbai D. Rajkumar
Date :29th May 2017 Chairman & Managing Director

ANNEXURE H

Disclosure as required under Regulation 34, Schedule V of the SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015

Particulars

Balance as on

Maximum amount outstanding during the period

31.03.2017 31.03.2016 2016-17 2015-16
(a) Loans and advances in the nature of Loans :
(i) To Subsidiary Company- Bharat Pefro-Resources Limited 2,500.00 650.00 2,500.00 650.00
(ii) To Associates- Bharat Oman Refineries Limited 1,254.10 1,354.10 1,354.10 1,354.10
(iii) To Firms/ Companies in which directors are interested- Limited - - - -
(b) Investment by the loanee in the shares of BPCL & its subsidiary company - - - -

ANNEXUREJ

DIVIDEND DISTRIBUTION POLICY

PREAMBLE:

The shares of Bharat Petroleum Corporation Limited (the "Company") are listed on the National Stock Exchange of India Limited, Mumbai and BSE Limited, Mumbai. SEBI vide its notification dated 08.07.2016 has inserted Regulation 43A in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 which requires top five hundred listed entities based on market capitalization (calculated as on March 31 of every financial year) to formulate a dividend distribution policy which shall be disclosed in their annual reports and on their websites.

The Board of Directors of the Company ("the Board") has approved the Dividend Distribution Policy of the Company ("the policy").

OBJECTIVE

The Company aims at maximisation of shareholder value and believes that this can be attained by driving growth. The policy endeavours to strike an optimum balance between rewarding shareholders through dividend and ensuring that sufficient profits are retained for growth of the Company and other needs. The objective of the policy is to lay down a consistent approach to dividend declaration.

PARAMETERS FOR DIVIDEND DISTRIBUTION

• The Company has only one class of shares i.e. Equity shares and hence, the parameters disclosed hereunder apply to the same.

• The Board, while considering payment of dividend for a financial year may, inter-alia, consider the following factors:> Profit for the financial year as well as general reserves of the Company.

> Projections of future profits and cash flows;

> Borrowing levels and the capacity to borrow including repayment commitments;

> Present and future capital expenditure plans of the Company including organic/inorganic growth avenues.

> Applicable taxes including tax on dividend.

> Compliance with the provisions of the Companies Act or any other statutory guidelines including guidelines issued by the Govt. of India.

> Past dividend trends for the Company and the industry.

> State of the economy and capital markets.

> Any other factor as may be deemed fit by the Board.

• The profits for a year may be adjusted at the discretion of the Board, for the purpose, to exclude exceptional or one off items or non-cash items resulting from change in law, accounting policies, accounting standards or otherwise.

• The Company would endeavor to pay minimum annual dividend of 30% of Profit after Tax (PAT) or 5% of net worth, whichever is higher, subject to the maximum dividend permitted under the extant legal provisions.

• In case of deviation if any, in a particular year due to inadequacy or absence of profits/reserves or otherwise, the reasons and justification thereof shall be disclosed to the shareholders through the Annual Report of the Company.

• The Company is committed to continuous growth and has plans requiring significant capital outlay. The retained earnings, after distribution of dividend, shall primarily be utilized towards this purpose.

• Dividend shall be recommended by the Board for approval of shareholders of the Company for payment. However, the Board may also consider payment of interim dividend as and when it feels appropriate.

GENERAL

• In the event of the policy being inconsistent with any new regulatory provision, such regulatory provision shall prevail upon the corresponding provision of this policy and the policy shall be construed to be amended accordingly from the effective date of such provision.

• The Company reserves its right to alter, modify, add, delete or amend any or all of the provisions of the policy as it may deem fit or in accordance with the guidelines as may be issued by SEBI, Government of India or any other regulatory authority. The change in the policy shall, however, be disclosed alongwith the justification thereof on the Company's website and in the ensuing Annual Report in accordance with the extant regulatory provisions.

PERFORMANCE PROFILE

Particulars 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
1. Refinery Thruput (TMT)
Imported 20,421 18,028 17,661 16,761 17,155 16,353 14,769 14,126 13,143 13,904
Indigenous 4,970 6,088 5,694 6,590 6,050 6,559 7,015 6,281 6,802 7,042
TOTAL 25,391 24,115 23,355 23,351 23,205 22,912 21,784 20,407 19,945 20,946
2. Production Quantity (TMT) 24,206 22,965 22,149 22,052 21,843 21,522 20,547 19,199 18,628 19,570
Light Distillates % 30.05 28.90 27.93 29.19 28.52 28.91 29.83 28.11 26.43 26.64
Middle Distillates % 59.83 60.27 59.65 57.02 56.26 55.42 55.46 54.51 54.24 54.72
Heavy Ends % 10.12 10.83 12.42 13.78 15.22 15.68 14.71 17.38 19.33 18.64
3. Fuel and Loss as % of Crude Processed * 4.7 4.8 5.2 5.6 5.9 6.1 5.7 5.9 6.6 6.6
4. Market Sales (MMT) 37.68 36.53 34.45 34.00 33.30 31.14 29.27 27.89 27.35 25.79
5. Lubricants Production (MT) 2,93,791 2,95,509 2,87,649 2,58,112 2,58,586 2,17,851 2,20,387 2,09,301 1,51,788 1,61,957
6. Market Participation % 22.8 22.9 23.3 23.5 23.1 22.4 22.5 22.5 22.8 22.7
7. Marketing Network
Installations 13 13 13 12 12 12 12 12 12 12
Depots 115 118 114 116 115 115 114 129 120 126
Aviation Service Stations 43 40 35 34 36 36 31 30 23 22
Total Tankages (Million KL) 3.70 3.60 3.52 3.49 3.44 3.43 3.39 3.40 3.33 3.32
Retail Outlets 13,983 13,439 12,809 12,123 11,637 10,310 9,289 8,692 8,402 8,251
LPG Bottling Plants 51 50 50 50 50 49 49 49 49 48
LPG Distributors 4,684 4,494 4,044 3,355 2,949 2,658 2,452 2,187 2,117 2,137
LPG Customers (No. Million) 59.5 50.6 45.8 41.2 37.4 34.5 31.1 28.3 26.6 25.3
8. Manpower (Nos.) 12,484 12,623 12,687 13,214 13,213 13,343 13,837 13,900 14,016 14,006
9. Sales and Earnings (Figures in ' Crores)
i) Sales and Other Income 2,43,476 2,18,072 2,47,552 2,53,492 2,29,796 2,03,866 1,54,886 1,27,884 1,30,118 1,13,936
ii) Gross Profit before Depreciation, Interest & Tax 13,430 12,801 10,515 9,555 7,787 5,569 5,167 4,619 4,246 4,368
iii) Depreciation 1,891 1,845 2,516 2,247 1,926 1,885 1,655 1,242 1,076 1,098
iv) Interest 496 565 583 1,359 1,825 1,800 1,117 1,011 2,166 673
v) Profit before Tax 11,043 10,391 7,416 5,949 4,036 1,884 2,395 2,366 1,004 2,597
vi) Tax 3,003 3,335 2,331 1,888 1,393 573 848 828 268 1,017
vii) Profit after Tax 8,039 7,056 5,085 4,061 2,643 1,311 1,547 1,538 736 1,581
10. What the Company Owned (Rs. in Crores)
i) Gross Property, Plant and Equipment (including Capital Work-in-Progress and Investment Property) 46,761 37,700 49,475 41,229 36,095 32,846 30,307 27,930 24,560 22,268
ii) Net Property, Plant and Equipment (including Capital Work-in-Progress and Investment Property) 43,060 35,872 27,981 22,105 19,110 17,732 16,972 16,187 14,003 12,735
iii) Net Current Assets 96 (65) (991) 9,584 14,690 13,612 9,715 19,954 20,536 15,445
iv) Non-Current Assets 14,672 11,283 11,463 10,671 9,482 8,430 8,113 - - -
Total Assets Net (ii+iii+iv) 57,828 47,090 38,453 42,360 43,282 39,774 34,800 36,141 34,539 28,180
11. What the Company Owed (Rs. in Crores)
i) Share Capital@ 1,311 656 723 723 723 362 362 362 362 362
ii) Other Equity 28,357 26,667 21,744 18,736 15,911 14,552 13,696 12,725 11,766 11,315
iii) Total Equity ( i+ii ) 29,668 27,323 22,467 19,459 16,634 14,914 14,058 13,087 12,128 11,677
iv) Borrowings 23,159 15,857 13,098 20,322 23,839 22,994 18,960 22,195 21,172 15,022
v) Deferred Tax Liability (net) 3,502 2,622 1,708 1,361 1,656 1,401 1,008 859 1,239 1,481
vi) Non- Current Liabilites 1,499 1,288 1,180 1,218 1,153 465 774 - - -
Total Funds Employed (iii + iv + v +vi) 57,828 47,090 38,453 42,360 43,282 39,774 34,800 36,141 34,539 28,180
12. Internal Generation (Rs. in Crores) 5,716 7,114 5,989 4,586 4,002 3,135 2,759 1,897 1,282 2,636
13. Value Added (Rs. in Crores) 25,903 24,885 20,569 20,855 17,638 14,837 12,926 10,085 10,447 8,024
14. Earnings in Foreign Exchange (Rs. in Crores) 9,789 7,138 12,364 19,122 18,456 19,316 12,380 9,504 6,567 7,440
15. Ratios
i) Gross Profit before Depreciation, Interest & Tax as % age of Sales and Other Income 5.5 5.9 4.1 3.5 3.1 2.5 3.1 3.5 2.9 3.5
ii) Profit after Tax as % age of average Total Equity 28.2 28.3 24.3 22.5 16.8 9.1 11.4 12.2 6.2 14.4
iii) Gross Profit before Depreciation, Interest & Tax as % age of Capital Employed 30.1 38.9 36.1 25.4 19.7 14.6 15.7 13.7 13.1 15.9
iv) Profit before Tax as % age of Capital Employed 24.8 31.6 25.5 15.8 10.2 4.9 7.2 7.0 3.1 9.5
v) Profit After Tax as % age of Capital Employed 18.0 21.4 17.5 10.8 6.7 3.4 4.7 4.6 2.3 5.8
vi) Debt Equity Ratio 0.78 0.58 0.58 1.04 1.43 1.54 1.35 1.70 1.75 1.29
16. Earnings per Share (Rs.) # 61.31 53.81 35.16 28.08 18.28 9.07 10.70 10.63 5.09 10.93
17. Book Value per Share (Rs.) # 226.26 208.38 155.36 134.56 115.02 103.13 97.21 90.49 83.87 80.75
18. Dividend^
i) Percentage 325 310 225 170 110 110 140 140 70 40
ii) Amount (Rs. in Crores) 4,700 2,242 1,627 1,229 795 398 506 506 253 145

Note: The figures for 2016-17 and 2015-16 are as per Indian Accounting Standards (Ind AS)

The figures from the year 2010-11 and onwards are prepared as per the requirements of the Revised Schedule VI/Schedule III as applicable @ The share capital for 2016-17 and 2015-16 is after adjustment of BPCL Trust for Investment in Shares.

# Adjusted for 1:1 bonus issue in July, 2016

~ Dividend includes proposed dividend, which represents for Gross paid-up Capital.

   

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