MIRA INFORM REPORT

Report Date :

01.07.2013

IDENTIFICATION DETAILS

Name :	HINDUSTAN PETROLEUM CORPORATION LIMITED
Registered Office :	Petroleum House, 17, Jamshedji Tata Road, Churchgate, Mumbai – 400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.07.1952
Com. Reg. No.:	11-008858
Capital Investment / Paid-up Capital :	Rs. 3390.100 millions
CIN No.: [Company Identification No.]	L23201MH1952GOI008858
TAN No.: [Tax Deduction & Collection Account No.]	MUM07045D
PAN No.: [Permanent Account No.]	AAACH11118B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Refining and Marketing of Petroleum Products.
No. of Employees :	11226 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (78)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 524900000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a fortune 500 company owned by the Government of India. It is a well established and a reputed company having a good track record. There appear slight fall in the profitability. However, financially the company appears to be strong. Trade relations are reported to be trustworthy. Business is active. Payment are reported to be regular and as per commitment. The company can be considered excellent for normal business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “AAA”
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	March 6, 2013

Rating Agency Name	CRISIL
Rating	Short term rating: “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March 6, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-22863900)

LOCATIONS

Registered/ Head Office/ Factory :	Petroleum House, 17 Jamshedji Tata Road, Churchgate, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22026151 / 22863900
Fax No.:	91-22-22872992 / 22841573 / 22872992
E-Mail :	corphqo@hpcl.co.in nrnarayanan@hpcl.co.in shrikantb@hpcl.co.in
Website :	http://www.hindpetro.com http://www.hindustanpetroleum.com
Marketing Office :	Hindustan Bhavan, 8, Shoorji Vallabhdas Marg, P. B. No. 155, Ballard Estate, Mumbai – 400038, Maharashtra, India
Tel. No.:	91-22-22618031 / 22637000
Fax No.:	91-22-22611822
Aviation Office :	2nd Floor, Gresham Assurance Building, Sir P.M. Road, Po Box N 198, Fort, Mumbai – 400001, Maharashtra, India
Refinery :	Mumbai Refinery B.D. Patil Marg, Chembur, Mumbai – 400074, Maharashtra, India Visakh Refinery Post Box No. 15, Siripuram Opposite A U Outgate, Vishakhapatnam – 530 001, Andhra Pradesh, India
Zonal Offices :	East Zone 6, Church Lane, Post Box No. 146, Kolkata – 700001, West Bengal, India North Zone 6^th and 7^th Floor, Core 1 and 2, North Tower, Scope Minar, Laxmi Nagar, Delhi – 110092, India North Central Retail Zone C/o. Lucknow Retail R.O.4, Shanajaf Road, 1, Nehru Enclave, Besides Vishwas Khand, Gomti Nagar, Lucknow – 226001, Uttar Pradesh, India North West Retail Zone C/o. Auto Care Centre, Judges Bunglow Road, Bodakdev, Near Satyagraha Chavani, Ahmedabad – 380054, Gujarat, India South Zone Thalamuthu Natarajan Building, 4^th Floor, 8, Gandhi Irwin Road, Post Box No.3045, Egmore, Chennai – 600008, Tamilnadu, India South Central Retail Zone 111, Chandralok Complex, First Floor, Sarojini Devi Road, Secunderabad – 500003, Andhra Pradesh, India West Zone R and C Building, Sir J.J. Road, Byculla, Mumbai – 400008, Maharashtra, India

DIRECTORS

As on 31.03.2012

Whole Time Directors :
Name :	Mr. S. Roy Choudhury
Designation :	Chairman and Managing Director (From 01.08.2010)
Name :	Dr. V. Vizia Saradhi
Designation :	Director-Human Resources (Till 31.07.2012)
Date of Birth/Age :	19.07.1952
Qualification :	B.Sc., Post Graduate – Industrial Relations and Personnel Management
Date of Appointment :	03.08.2007
Name :	Mr. B. Mukherjee
Designation :	Director – Finance
Date of Birth/Age :	03.05.1953
Qualification :	B.Sc., FCA
Date of Appointment :	01.02.2008
Name :	Mr. K. Murali
Designation :	Director – Refineries
Date of Birth/Age :	02.06.1953
Qualification :	B. Tech (Chemical Engineering)
Date of Appointment :	02.02.2009
Name :	Mrs. Nishi Vasudeva
Designation :	Director – Marketing, (From 04.07.2011)
Date of Birth/Age :	30.03.1956
Qualification :	B.A., PGDBM (IIM Kolkata)
Other Directorship :	SA LPG Company Private Limited
Name :	Mr. Pushp Kumar Joshi
Designation :	Director (Human Resources)
Date of Birth/Age :	08.08.1964
Qualification :	B.A., LLB PG (PM & IR), XLRI, Jamshedpur
Date of Appointment :	01.08.2012
Ex – Officio Part- Time Directors
Name :	Dr. S C Khuntia
Designation :	Director
Date of Birth/Age :	21.11.1957
Qualification :	IAS Post Graduate in Physics, Economics, Sociology and Ph.D in Art Economics
Date of Appointment :	03.08.2012
Name :	Mr. L N Gupta
Designation :	Director
Date of Birth/Age :	17.08.1959
Qualification :	IAS, M.A. (Economics), MBA, Birmingham University
Date of Appointment :	25.06.2008
Name :	Mr. P. K. Sinha
Designation :	Director (Till 29.02.2012)
Non Official Part Time Director
Name :	Dr. Gitesh K Shah
Designation :	Non Official PartTime Director
Date of Birth/Age :	20.10.1961
Qualification :	D.Sc. (Organic Chemistry), USA Ph.D. (Organic Chemistry), Gujarat University
Date of Appointment :	07.12.2009
Name :	Mr. Anil Razdan
Designation :	Non-Executive Independent Director
Date of Birth/Age :	07.12.1948
Qualification :	IAS
Date of Appointment :	10.01.2011
Name :	Mr. S K Roongta
Designation :	Non-Executive Independent Director
Date of Birth/Age :	09.05.1950
Qualification :	B.E. (Electrical) PGDBM (IIFT)
Date of Appointment :	10.01.2011
Name :	Mr. G K Pilla
Designation :	Non Official Part Time Director
Date of Birth/Age :	30.11.1949
Qualification :	IAS, M.Sc.
Date of Appointment :	09.04.2012
Name :	Mr. A C Mahajan
Designation :	Non Official Part Time Director
Date of Birth/Age :	05.07.1950
Qualification :	M.Sc. (Hons.)
Date of Appointment :	09.04.2012
Name :	Mr. G Raghuram
Designation :	Non Official Part Time Director
Date of Birth/Age :	20.07.1955
Qualification :	B.Tech. PGDM Ph.D.
Date of Appointment :	09.04.2012

KEY EXECUTIVES

Senior Management Team :
Name :	Mr. Suneet Mohan Misra
Designation :	Chief Vigilance Officer
Name :	Mr. S.V. Sahni
Designation :	ED - Central Engineering (Refineries)
Name :	Mr. D.K. Deshpande
Designation :	ED – SHE Corporate and Refinery Advisor to C and MD
Name :	Mr. K.S.R Prasad
Designation :	ED – Joint Ventures
Name :	Mr. A. B. Thosar
Designation :	ED – LPG
Name :	Mr. R. Sudhakara Rao
Designation :	ED – Internal Audit
Name :	Mr. S.P. Gupta
Designation :	ED
Name :	Mr. O P Pradhan
Designation :	ED – PCPIR Project
Name :	Mr. P A B Raju
Designation :	ED – Visakh Refinery
Name :	Mr. K.V. Rao
Designation :	ED – Corporate Finance
Name :	Mr. M.S. Damle
Designation :	ED – Retail
Name :	Mr. Y.K. Gawali
Designation :	ED – O and D
Name :	Mr. B. K. Namdeo
Designation :	ED – IT and S
Name :	Mr. S.C. Mehta
Designation :	ED – Mumbai Refinery
Name :	Mr. Rajan K. Pillai
Designation :	ED
Name :	Mr. S. Jeyakrishnan
Designation :	ED – Business Development and Corporate Affairs
Name :	Mr. S.P. Singh
Designation :	ED – Exploration and Production
Name :	Mr. G. Sriganesh
Designation :	ED – Refineries (R and D Corporate)
Name :	Mr. H. Kumar
Designation :	ED – Corp. Strategy and Planning
Name :	Mr. Anil Pande
Designation :	ED – Projects and Pipelines
Name :	Mr. S.T. Sathiavageeswaran
Designation :	ED – Information Systems
Name :	Mr. Ajit Singh
Designation :	ED – Co-ordination, DCO
Name :	Mr. Rakesh Misri
Designation :	ED – Direct Sales
Name :	Mr. Pushp Joshi
Designation :	ED – HRD
Name :	Mr. Sandeep Joseph
Designation :	GM – Industrial Relations
Name :	Mr. D.M. Sable
Designation :	GM – SHE (Marketing)
Name :	Mr. P. Rajendran
Designation :	GM – Marketing Projects
Name :	Mr. R. Ganesan
Designation :	GM – Finance, MR
Name :	Mr. Rakesh Kumar
Designation :	GM – HR (Comp. Management)
Name :	Mr. D.K. Hota
Designation :	GM
Name :	Mr. K. Srinivasan
Designation :	GM – SHE (Refineries)
Name :	Mr. A. V. Sarma
Designation :	GM – Natural Gas
Name :	Mr. P.P. Nadkarni
Designation :	GM
Name :	Mr. R. Radhakrishnan
Designation :	GM – Aviation
Name :	Mr. H.R. Wate
Designation :	GM – Retail
Name :	Mr. M.K. Surana
Designation :	GM – Projects, VR
Name :	Mr. V.V.R. Narasimhan
Designation :	GM – Operations, VR
Name :	Mr. V.K. Jain
Designation :	GM – Tax
Name :	Ms. Sonal Desai
Designation :	GM – Finance (Risk Management)
Name :	Mr. J. Ramaswamy
Designation :	GM – Finance (Marketing)
Name :	Mr. M. Naveen Kumar
Designation :	GM – Finance, VR
Name :	Mr. V.V. Nagada
Designation :	GM – Projects, MR
Name :	Mr. N.S. Jagannadharao
Designation :	GM – Maintenance, MR
Name :	Mr. Y.K. Rao
Designation :	GM – Materials, VR
Name :	Mr. Ramanuj Roy
Designation :	GM – Commercial, LPG
Name :	Mr. S. Babu Ganesan
Designation :	GM – Engineering and Projects
Name :	Mr. A.K. Bhan
Designation :	GM – Retail, SZ
Name :	Ms. Geeta M. Jerajani
Designation :	GM – Finance, CP and S
Name :	Mr. H.C. Mehta
Designation :	GM – O and D
Name :	Mr. R. Kesavan
Designation :	GM – Finance, CEC
Name :	Mr. B. Ravindran
Designation :	GM – Commercial, Retail
Name :	Mr. M. Rambabu
Designation :	GM – Materials
Name :	Mr. MVR Krishna Swamy
Designation :	GM
Name :	Mr. S.P. Nair
Designation :	GM – Legal
Name :	Mr. L.M. Motwani
Designation :	GM – PR and CC
Name :	Mr. U.K. Vishwekar
Designation :	GM – Shipping
Name :	Mr. Anil Khurana
Designation :	GM – Retail, NZ
Name :	Mr. G S V S S Sarma
Designation :	GM – Technical, VR
Name :	Mr. S.P. Gaikwad
Designation :	GM – CEC (Maharashtra Refinery)
Name :	Mr. Rajnish Mehta
Designation :	GM – Retail, WZ
Name :	Mr. J.S. Prasad
Designation :	GM – Pipelines
Name :	Mr. N.S. Mane
Designation :	GM – HR, MR
Name :	Mr. V.S. Shenoy
Designation :	GM – Technical, MR
Name :	Mr. S. Paul
Designation :	GM – Commercial, DS
Name :	Mr. M D Pawde
Designation :	GM – Operations, MR
Name :	Mr. N.V. Choudhury
Designation :	GM – Process Technologies, Corporate R and D
Name :	Mr. S. K. Kulkarni
Designation :	GM – Materials, MR
Name :	Mr. Venugopal Lekshmank
Designation :	GM – Project Materials, VR
Name :	Mr. S Raja
Designation :	GM – Maintenance, VR
Name :	Mr. G Chiranjeevi
Designation :	GM- Retail, North Zone
Name :	Mr. Dilip Kumar Pattanaik
Designation :	GM – Retail, East Zone
Name :	Mr. S. Bhattacharjee
Designation :	GM – Joint Venture
Name :	Mr. K Daniel Santosh
Designation :	GM – Finance, VR
Name :	Mr. Shrikant M. Bhosekar
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	173076750	51.11
Sub Total	173076750	51.11
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	173076750	51.11
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	39294301	11.60
Financial Institutions / Banks	1073417	0.32
Insurance Companies	41109033	12.14
Foreign Institutional Investors	33007049	9.75
Sub Total	114483800	33.81
(2) Non-Institutions
Bodies Corporate	28905280	8.54
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	16714885	4.94
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	4099563	1.21
Any Others (Specify)	1346972	0.40
Directors & their Relatives & Friends	1275	0.00
Hindu Undivided Families	190394	0.06
Trust & Foundation	29197	0.01
Non Resident Indians	1126106	0.33
Sub Total	51066700	15.08
Total Public shareholding (B)	165550500	48.89
Total (A)+(B)	338627250	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	338627250	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Name of Shareholders	No. of Shares	Percentage of Holding
President of India	17,30,76,750	51.11
Total	17,30,76,750	51.11

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Name of Shareholders	No. of Shares	Percentage of Holding
Life Insurance Corporporation India Affiliates	33332314	9.84
HDFC Standard Life Insurance Company Limited	7347312	2.17
HDFC Trustee Company Limited - HDFC Top	4591031	1.36
ICICI Prudential Life Insurance Company	3938049	1.16
HDFC Trustee Company Limited - HDFC Equity	3779411	1.12
Government Pension Fund Global	3685058	1.09
Reliance Capital Trustee Company Limited Reliance	3600000	1.06
Birla Sun Life Insurance Company Limited	3481620	1.03
Total	63754795	18.83

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Name of Shareholders	No. of Shares	Percentage of Holding
Life Insurance Corporporation India Affililates	33332314	9.84
Total	33332314	9.84

BUSINESS DETAILS

Line of Business :

Refining and Marketing of Petroleum Products.

Products :

Item Code No. (ITC Code)	Product Description
2710	Bulk Petroleum Products
271000.41/61	Lubricants
290122.00	Propylene

PRODUCTION STATUS (AS ON 31.03.2011)

Licensed capacity and Installed capacity at year end in Metric Tonnes per annum

Particulars	Licensed Capacity	Installed Capacity
(a) Petroleum fuel and lube products	14800000	14800000
(b) Lubricating Oils, Greases and Textile Auxiliaries *	NA	319779
(c) Hydraulic Brake Fluid and Insecticides	NA	4062

* Product manufacturing facilities are interchangeable

Production in Metric Tonnes:

Particulars	Actual Production
(a) Petroleum fuel and lube products
i. Bulk Petroluem Products	14765526
ii. Lubricating Oil Base Stocks(including Transformer Oil Base Stocks)	382420
iii. Carbon Black Feed Stock	-
iv. Axle Oil	-
v. Rubber Processing Oil	94168
(b) Lubricating Oils	183249
(c) Textile Auxiliaries	17
(d) Insecticides	168
(e) Greases	6873

GENERAL INFORMATION

No. of Employees :

11226 (Approximately)

Bankers :

· Bank of Baroda

· Bank of India

· Citibank N.A.

· Corporation Bank

· HDFC Bank

· ICICI Bank

· Punjab National Bank

· Standard Chartered Bank

· State Bank of India

· Union Bank of India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
7.70% Non-Convertible Debentures	10000.000	10000.000
7.35% Non-Convertible Debentures	0.000	10000.000
Short Term Borrowings
Collateral Borrowing and Lending Obligation (CBLO) (Secured by Pledge of 6.90 % Oil Marketing Companies' GOI Special Bonds, 2026)	12600.000	9900.000
Overdrafts from Banks (secured by hypothecation of Stock-in-Trade)	3920.600	6676.800
Total	26520.600	36576.800

Note:

Long Term Borrowings

(a) Debentures

The company has issued the following secured redeemable non-convertible debentures:

7.70% Non-Convertible Debentures issued on 12^th April, 2010 with the maturity date of 12^th of April, 2013. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company situated at Mumbai Refinery and Visakh Reinery.

7.35% Non-Convertible Debentures issued on 4^th December, 2009 with the maturity date of 4^th of December, 2012. The same have been shown as "Current Maturity of Long Term Debts" under Note # 10A. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company situated at Mumbai Refinery.

Banking Relations :	--
Auditors :
Statutory Auditors Name :	Om Agarwal and Company Chartered Accountant
Address :	Jaipur, Rajasthan, India
Statutory Auditors Name :	B. K. Khare and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Branch Auditors Name :	Sriramamurthy and Company Chartered Accountants
Address :	Visakhapatnam, Andhra Pradesh, India
Cost Auditors Name :	R. Nanabhoy and Company Cost Accountant
Address :	Jer Mansion, 1^st Floor, 70, August Kranti Marg, Mumbai - 400036, Maharashtra, India
Cost Auditors Name :	CMA Rohit J. Vora Cost Accountant
	1103, Raj Sunflower, Royal Complex, Eksar Road, Borivali West, Mumbai - 400092, Maharashtra, India
Joint Venture Companies	ô Prize Petroleum Company Limited (upto 18.12.2011) ô HPCL-Mittal Energy Limited ô Hindustan Colas Limited ô South Asia LPG Company Private Limited ô Petronet India Limited ô Aavantika Gas Limited
State Controlled Enterprises :	¯ CREDA-HPCL Biofuels Limited ¯ HPCL Biofuels Limited ¯ Prize Petroleum Company Limited (w.e.f. 19.12.2011) ¯ Mangalore Refinery and Petrochemicals Limited ¯ Petronet MHB Limited ¯ Bhagyanagar Gas Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
349250000	Equity Shares	Rs.10/- each	Rs.3492.500 Millions
75000	Preference Shares	Rs.100/- each	Rs.7.500 Millions
	Total		Rs. 3500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
339330000	Equity Shares	Rs.10/- each	Rs.3393.300 Millions
	Less: 702750 Shares Forfeited		Rs.7.000 Millions
338627250	Equity Shares		Rs.3386.300 Millions
	Add: Shares Forfeited (money received)		Rs.3.900 Millions
	Total		Rs.3390.100 Millions

Details of shares held by each shareholder holding more than 5% shares in the Company

Particular	31.03.2012
President of India	511.100
Life Insurance Corporation of India	88.900

Right and Restrictions on Equity Shares

The Company has only one class of Equity Shares having a face value of Rs. 10/- per share which are issued and subscribed. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the unlikely event of the winding up of the Company, the holders of equity shares will be entitled to receive the remaining assets of the company in proportion to the number of equity shares held by the shareholders and the amount paid up thereon. Company also has 75,000 6% cummulative Redeemable Non-convertible Preference Shares of Rs. 100/- each as a part of the Authorised Capital, which were issued earlier by the erstwhile ESRC. Presently the said preference shares stand redeemed.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3390.100	3390.100
(b) Reserves & Surplus	127835.100	122068.000
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	131225.200	125458.100
(3) Non-Current Liabilities
(a) long-term borrowings	62913.700	54180.500
(b) Deferred tax liabilities (Net)	30852.800	31956.400
(c) Other long term liabilities	54712.700	46135.700
(d) long-term provisions	4365.500	2732.100
Total Non-current Liabilities (3)	152844.700	135004.700
(4) Current Liabilities
(a) Short term borrowings	211878.800	182110.400
(b) Trade payables	126976.500	90294.000
(c) Other current liabilities	72677.900	58488.400
(d) Short-term provisions	15470.400	16255.300
Total Current Liabilities (4)	427003.600	347148.100
TOTAL	711073.500	607610.900
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	207355.600	185263.800
(ii) Intangible Assets	1140.900	1181.500
(iii) Capital work-in-progress	44444.700	36960.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	74834.300	73243.300
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	15026.000	12754.600
(e) Other Non-current assets	674.600	2275.600
Total Non-Current Assets	343476.100	311678.800
(2) Current assets
(a) Current investments	28870.700	40106.900
(b) Inventories	194545.300	166222.800
(c) Trade receivables	35651.600	30768.600
(d) Cash and cash equivalents	2263.800	790.200
(e) Short-term loans and advances	101457.900	55517.900
(f) Other current assets	4808.100	2525.700
Total Current Assets	367597.400	295932.100
TOTAL	711073.500	607610.900

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3390.100
2] Share Application Money		0.000
3] Reserves & Surplus		112189.600
4] (Accumulated Losses)		0.000
NETWORTH		115579.700
LOAN FUNDS
1] Secured Loans		13758.800
2] Unsecured Loans		199264.900
TOTAL BORROWING		213023.700
DEFERRED TAX LIABILITIES		18079.700
TOTAL		346683.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		153066.700
Capital work-in-progress		38875.900
INVESTMENT		113872.200
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	125792.200
	Sundry Debtors	24373.400
	Cash & Bank Balances	2431.700
	Other Current Assets	1237.400
	Loans & Advances	52584.700
Total Current Assets		206419.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	73931.300
	Other Current Liabilities	71423.900
	Provisions	20195.900
Total Current Liabilities		165551.100
Net Current Assets		40868.300
MISCELLANEOUS EXPENSES		0.000
TOTAL		346683.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1781392.300	1334989.400	1013475.100
		Other Operating Revenue	1965.900	1728.800	--
		Recovery under Subsidy Schemes	--	--	62899.500
		Other Income	10255.900	11706.600	16461.600
		TOTAL (A)	1793614.100	1348424.800	1092836.200
Less	EXPENSES
		Cost of materials consumed	569432.300	403620.100	1059941.900 (Including Financial Expenses)
		Purchases of Stock-in-Trade	1093707.300	853968.600
		Packages consumed	1816.700	1434.200
		Excise Duty on Inventory differential	(3996.800)	2851.500
		Transshipping Expenses	32545.000	28865.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(8242.900)	(34387.800)
		Employee benefits expense	15831.000	19818.400
		Exploration Expenses	963.800	930.300
		Other Expenses	40838.700	24804.700
		Prior Period Charges	4.900	152.400
		TOTAL (B)	1742900.000	1302057.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		50714.100	46367.400
Less	FINANCIAL EXPENSES (D)		21392.400	8920.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION(C-D) (E)		29321.700	37446.800	32894.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17129.300	14069.500	11644.000
	PROFIT BEFORE TAX (E-F) (G)		12192.400	23377.300	21250.300
Less	TAX (H)		3078.100	7987.200	8236.600
	PROFIT AFTER TAX (G-H) (I)		9114.300	15390.100	13013.700
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		93731.200	87151.500	81041.600
Less	APPROPRIATIONS
		General Reserve	911.400	1539.000	1301.400
		Debenture Redemption Reserve	1761.500	1761.500	864.000
		Proposed Final Dividend	2878.300	4740.800	4063.500
		Tax on Distributed Profits	467.000	769.100	674.900
	BALANCE CARRIED TO THE B/S		96827.300	93731.200	87151.500
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	77824.800	55228.000	63822.600
	TOTAL EARNINGS		77824.800	133052.800	119050.600
	IMPORTS
		Raw Materials	514651.200	299307.800	291579.600
		Stores & Spares	630.900	836.300	1276.800
		Reimbursement of expenses	1001.000	1127.400	890.700
	TOTAL IMPORTS		516283.100	301271.500	293747.100
	Earnings Per Share (Rs.)		26.92	45.45	38.43

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	444976.000	491297.900	53,4138.900	596899.900
Total Expenditure	529524.100	462159.400	52,3633.900	510552.800
PBIDT (Excl OI)	(84548.100)	29138.500	1,0505.000	86347.100
Other Income	2125.700	2941.200	2046.300	3910.400
Operating Profit	(82422.400)	32079.700	1,2551.300	90257.500
Interest	5492.400	3898.600	6134.600	2851.600
Exceptional Items	(29.000)	0.000	0.000	0.000
PBDT	(87943.800)	28181.100	6416.700	87405.900
Depreciation	4544.200	4910.200	4945.600	4914.300
Profit Before Tax	(92488.000)	23270.900	1471.100	82491.600
Tax	0.000	0.000	0.000	5698.500
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	(92488.000)	23270.900	1471.100	76793.100
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	(92488.000)	23270.900	1471.100	76793.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.51	1.14	1.19
Net Profit Margin (PBT/Sales)	(%)	0.68	1.75	2.10
Return on Total Assets (PBT/Total Assets}	(%)	2.06	4.70	5.91
Return on Investment (ROI) (PBT/Net worth)		0.09	0.19	0.18
Debt Equity Ratio (Total Debt/Net worth)		2.09	1.88	1.84
Current Ratio (Current Asset/Current Liability)		0.86	0.85	1.25

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade Payables
Total outstanding dues of Micro, Small and medium Enterprises	0.000	0.000	18.100
Total outstanding dues of creditors other than above	126976.500	90294.000	73913.200
Total	126976.500	90294.000	73931.300

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	------
26]	Buyer visit details	------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

Case Details

Bench:- Bombay

Stamp No.:- WPST/17655/2012 Filing Date:- 03/07/2012 Reg. No.:- WP/6483/2012 Reg. Date:- 11/07/2012

Petitioner:- MUMBAI SAHAKARI GHASLATE VITRAN SANS Respondent:- HINDUSTAN PETROLEUM

CORPORATION LTD

Petn.Adv.:- A.S. DESAI Resp.Adv:- PALLAVI N. DABHOLKAR

District:- MUMBAI

Bench:- DIVISION

Status: Pre – Admission

Next Date:- 13/12/2012 Stage:- FOR ADMISSION – AFTER NOTICE

Coram:- HON’BLE SHRI JUSTICE A.M. KHANWILKAR

HON’BLE SHRI JUSTICE R.Y. GANOO

Last Date:- 25/10/2012 Stage:- FOR ADMISSION – AFTER NOTICE

Last Coram:- HON’BLE SHRI JUSTICE A.M.KHANWILKAR

HON’BLE SHRI JUSTICE R.Y.GANOO

Act:- Essential Commodities Act

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Term Loan from Oil Industry Development Board (b)	8902.500	6210.000
Syndicated Loans from Foreign Banks (repayable in foreign currency)	44011.200	27970.500
Short Term Borrowings
Short Term Loans from Banks (repayable in foreign currency)	148508.200	96283.600
Clean Loans from Banks	6000.000	60250.000
Inter Company Deposits	9450.000	5000.000
Commercial Paper	31400.000	4000.000
Total	248271.900	199714.100

Note:

Long Term Borrowings

Term Loan from Oil Industry Development Board

Repayable During	As on 31^st March, 2012
	Repayable Amount Rs. / Millions	Range of Interest Rate
2011-12 *	-	-
2012-13*	2307.500	7.10% - 9.96%
2013-14	3307.500	7.10% - 9.96%
2014-15	2345.000	7.10% - 8.39%
2015-16	2000.000	7.20% - 8.39%
2016-17	1250.000	8.07% - 8.39%
Total	11210.000	-

Rs.2307.500 Millions (2010 - 11: Rs.1307.500 Millions) is repayable within 1 year and the same has been shown as "Current Maturity of Long Term Debts" under Note # 10A.

Syndicated Loans from Foreign Banks (repayable in foreign currency)

The Corporation has availed long term foreign currency syndicated loans from banks on floating LIBOR. These loans are taken for the period of 5 years. During the year ended March, 2012 an amount of Rs. 11212.300 Millions. (2010 - 2011 Rs. 12613.200 Millions) of Syndicated Loans is repayable within one year and the same has been shown as "Current Maturity of Long Term Debts" under Note # 10A.

SALES/INCOME FROM OPERATIONS
 
The Company has achieved sales/income from operations of Rs.1881309.500 Millions as compared to Rs.1423964.900 Millions in 2010-11.  
 
PROFIT
 
The Company has earned gross profit of Rs. 50714.000 Millions as against Rs. 46367.500 Millions in 2010-11 and profit after tax of Rs. 9114.300 Millions as compared to Rs. 1,5390.100 Millions in 2010-11.

REFINERY PERFORMANCE
 
HPCL refineries processed a combined crude thruput of 16.19 MMT (14.75 MMT in 2010-11) with a capacity utilization of 109% of the installed capacity of 14.80 MMT.
 
The Combined Distillate yield of 73.2% was higher than MoU Excellent target of 73.0%. HPCL refineries recorded the highest ever HS crude processing of 68.3%.
 
Gross refining margins of Mumbai Refinery averaged at US$ 2.83 per barrel as against US$ 4.65 per barrel for the year 2010-11.
 
Gross refining margins of Visakh Refinery averaged at US$ 2.95 per barrel as against US$ 5.81 per barrel for the year 2010-11. 
 
Mumbai Refinery:
 
During the year, Mumbai Refinery achieved crude thruput of 7.51 MMT as against installed capacity of 6.50 MMT. The refinery has set a milestone by recording the highest ever crude thru put surpassing the previous best of 7.42 MMT during 2006-07.
 
The Distillate yield at 72.3% was higher than MoU Excellent target of 71.7%.
 
Mumbai Refinery achieved Specific Energy Consumption (MBTU/BBL/NRGF) of 81.4 against MoU Excellent target of 89.0 for the current year.
 
The fuel and loss for the year was 7.9% against the target of 8.2% 
 
Visakh Refinery:
 
Visakh Refinery achieved crude thruput of 8.68 MMT as against installed capacity of 8.30 MMT The Distillate yield at 74.0% was inline with the MoU Excellent target of 74.10%.
 
Visakh Refinery achieved Specific Energy Consumption (MBTU/BBL/NRGF) of 84.20 against MoU Excellent target of 88.0 for the current year.
 
The fuel and loss for the year was 7.4% against the target of 7.9%.
 
The particulars with respect to Conservation of Energy, Technology Absorption, Foreign Exchange Earning and Outgo are detailed in Annexure I.
 
The particulars relating to control of Pollution and other initiatives by Refineries are listed in Annexure II of Directors` Report.
 
MARKETING PERFORMANCE
 
During the year 2011-12, the Corporation achieved sales volume (including exports) of 29.48 million tonnes as against 27.03 million tonnes recorded in 2010-11. HPCL recorded a growth of 7.9% in Marketing Sales, over the sales volume of the previous year and amongst public sector oil companies increased its market share to 19.96% as on 31st March 2012 from 19.65% recorded in the previous year.
 
During the year, the Corporation commissioned 1,056 new retail outlets, which include 329 retail outlets in the rural areas taking the total tally to 11,253 Retail Outlets. The Corporation increased its market share in MS and HSD (combined) by 0.55%, the highest gain in market share by HPCL during the last 26 years. In the LPG business line, enrolled 33.56 Lakhs new HP Gas customers taking their total to 362 lakh as on 31st March 2012. In order to provide LPG to rural India, the Corporation commissioned 218 distributors under the Rajiv Gandhi Gramin LPG Vitaran Yojana. In the Aviation Business line, the Corporation achieved the highest ever sales of 768 TMT during the year. A record thruput of 41 million tonnes was handled by POL installations and the Corporation`s pipeline network achieved a thruput of 13.62 million tonnes during the year, exceeding the targeted thruput.

DEVELOPMENTS IN THE ECONOMY AND THE OIL SECTOR
 
The Indian economy slowed down perceptibly in 2011-12. The GDP growth was estimated to be 6.5% during 2011-12 compared to 8.4% in 2010-11. The growth rate was below the average annual growth of 7.6% during the preceding decade. Growth in agriculture and industry declined. Agriculture, which had grown at 7% in 2010-11, is estimated to have grown by 2.8% during 2011-12. Industry growth dipped to 3.4% in 2011-12 from 7.2% in 2010-11. The growth rate for services declined to 8.9% in 2011-12 compared to 9.3% in 2010-11. The slowdown is a consequence of, among others, a monetary policy followed to combat inflation, supply constraints and a troubled external economic environment.
 
Inflation remained around 10% for major part of the financial year. It started declining around Dec`11 with fall in primary food inflation. Manufactured products inflation also declined with slowdown in the economy. Fuel and power group inflation remained high despite suppression of prices of sensitive petroleum products. Global crude prices remained above US $ 100 per barrel throughout the year, fluctuating in $100/bbl. to $125/bbl. band. Despite subdued global economy and oil demand, prices remained high due to turbulence in the Middle East- loss of Libyan supplies, Iran nuclear issue, and unrest in Syria, etc.
 
 
High oil prices contributed to widening of the current account deficit. Oil imports by India increased by about 46% in 2011-12 compared to about 22% increase in the previous fiscal. Non-oil imports increased by about 27%. The total imports increased by 32.4% in 2011-12 compared to 28.2% in 2010- 11. Exports growth declined to 21.3% in 2011-12 from 40.5% in 2010-11 due to Eurozone crisis and worsening global economic outlook. Current account deficit widened to about 4.5% of GDP in Q4 of 2011-12 taking the full year ratio to 4.2% of GDP resulting in a substantial drawdown of reserves.
 
Despite the slowdown, the consumption of petroleum products increased by 4.9% in 2011-12 compared to 2.6% in 2010-11. Petroleum products consumption in 2011-12 was about 151 million tons. Consumption of all products except SKO, LDO, FO and LSHS increased. HSD grew at a whopping 8%, almost double the annual average growth rate of 4.7% during the last decade. Although consumption of FO and LSHS has been declining in the last couple of years, drop during the year was quite large at 17%. Growth rate for petrol consumption decreased to 5.7% in 2011-12 compared to 11% in 2010-11. LPG and Naphtha consumption increased by 7.5% and 5.6% respectively. Consumption of ATF increased by 9% while there was marginal growth of about 2% in Bitumen consumption.
 
Economic environment is still subdued and downside risks remain as issues plaguing the domestic and international economy have proved to be quite intractable.
 
World Oil
 
As per the BP Statistical review of world energy June,12, the estimated global consumption has increased to 88.034 Million Barrels Per Day (MBPD) representing an increase 0.595 MBPD i.e., a growth of 0.7% over historical. Consumption in Asia-Pacific grew by 2.7%. India contributed to 4% of the world`s oil consumption. The world oil production increased by 1.095 MBPD to 83.576 MBPD representing a growth of 1.3% over historical. There was a decline in production from the African region, by 1.3 MBPD, out of which the decline in Libya alone was 1.179 MBPD. The decline in Libya was off-set by increase in production from other OPEC members of Kuwait, Iraq, Qatar, Saudi Arabia and United Arab Emirates in the Middle-east. Oil production in Iran marginallydeclined by 0.6% to 4.321 MBPD. While, OPEC accounted for 1.077 MBPD increase i.e., growth of 3.1%, the total increase in countries from Middle East was 2.376 MBPD representing a growth of 9.3%. Production in Europe decreased by 1.8%, while it increased by about 2.4% in the American continents.
 
The proved oil reserves were 1652.6 Billion barrels with reserves to production ratio of 54.2 years. 48.1% of the proved reserves continue to be in Middle East.

MARKETING
 
The total sale of products (including exports) by the Corporation for 2011- 12 was 29.48 MMT as against 27.03 MMT during 2010-11. During the year, HPCL increased market share in domestic sales to 18.40% achieving a market share gain of 0.50%. HPCL recorded a growth of 7.9% in Marketing Sales, over the sales volume of the previous year. Amongst Public Sector Oil companies, HPCL increased its market share to 19.96% during 2011-12 compared to 19.65 % recorded the previous year.
 
Retail
 
Retail constitutes 68% of HPCL`s overall sales and enjoys high brand recall among consumers. HPCL enjoys significant market share of 25% in combined petrol and diesel retail segments as of Mar`12. During the year, the innovative measures and initiatives for differentiated customer experience by HPCL resulted in accelerated growth, excellent physical performance and landmark achievements in the motor fuels segment.
 
Retail sales of Motor Spirit (MS) increased by 7.5% in the year 2011-12 compared to Industry (PSU) growth of 6%. High Speed Diesel (HSD) sales grew by 14.7% against Industry (PSU) growth of 11.7%. HPCL increased its market share in MS and HSD (combined) by 0.55% during the year 2011-12. HPCL has commissioned 1,056 new outlets, including 329 outlets in the rural areas during 2011-12 taking the total number to 11,253 retail outlets.
 
Customer - Centric Initiatives
 
To enhance Customer Experience, strong measures were undertaken to improve and standardize the services offered at retail outlets. During 2011-12, HPCL implemented Standard Operating Practice (SOP) at about 2,750 retail outlets pan-India, which would be scaled up to all retail outlets going forward. This initiative was taken to provide an enjoyable and consistent customer experience across all retail outlets. Additionally, to enhance customer confidence, daily Quality and Quantity (QandQ) checks along with regular QandQ campaigns are being driven for their customers.
 
To enhance network productivity, HPCL has rolled-out a strategic framework tool at about 2,000 retail outlets during 2011-12 for taking outlet- specific initiatives. These initiatives include outlet-specific schemes based on local tie-ups over and above the national and regional-level campaigns, specifically catering to outlet-specific customers. To provide a fulfilling and complete experience, additional facilities like ATMs, tyre shops, food outlets, and convenience stores have been opened up at the outlets. Additionally, higher focus was ensured on Local Business Solicitation and Key Account Management by leveraging their Loyalty Program, Automation, Outlet facilities and Customer Service.
 
Retail SOP Refresher Training for Forecourt Salesmen
 
An extensive audio-visual cum cue card based training "Retail SOP Refresher Training" was launched aimed to create awareness of safety, health and hygiene aspects among the Forecourt Sales Men of the retail outlet (FSM) and to impart in them, the skills of salesmanship and customer relationship. The programme imparts knowledge on Standard Operating Practices and engaging "Retail FSMs (Forecourt Sales Man)" as a key SOP Implementer at the Retail Outlets. The newly designed training makes an extensive use of cue cards coupled with class room training and faculty observation for the individual development of FSM`s. During 2011-12, 232 programs were conducted covering 328 dealers and 4,678 FSMs.
 
The major impacts of the programme were visible improvement in Housekeeping Practices, imbibing of a better Queue management culture and increased awareness of safety standards.
 
Direct Sales - Industrial and Consumer
 
I and C Business line operated in a challenging and competitive environment during the year 2011-12 achieving a sale volume of 4.08 MMT including exports. Domestic sale of 3.94 MMT is marginally lower by 3%over previous year sales. The focus during the year was on margin improvement. The Business line recorded a growth of above Industry in MS, HSD, Bitumen, Hexane, Solvent and Propylene. However, sale of heavy fuels such as, FO and LSHS have got affected due to Customers switching over to cheaper alternate fuels including Natural gas especially in Power and Petrochemical Sectors.
 
During 2011-12, HSD Consumer sales surpassed 1 MMT mark for the first time, recording a growth of 14.7% compared to Industry growth of 2.6%. Similarly, the Business line also achieved highest ever sale of 931 TMT in Bitumen recording a growth of 16.9% as compared to Industry growth of 2.1%. The year also saw commissioning of 42 HSD Consumer pumps including 7 for the Indian Army. To augment Bitumen supply infrastructure in the east coast, a Bulk Bitumen storage facility was commissioned at Chennai (Cassimode Terminal).
 
Strengthening Infrastructure, Bunker Market, long term tie-up`s, Key Account Management etc. have been identified as a few focus areas for achieving growth in the Direct sales business. The commissioning of HMEL (JV) Refinery at Bathinda, Punjab would further strengthen product availability in northern markets.
 
Direct Sales - Lubes

India continues to be the third largest lube market in the world after US and China. The consumption of lubricants in the country including transformer oils and white oils in the year 2011-12 was 2,550 TMT approximately. The market comprises of 650 TMT of Commercial Automotive Oils, 350 TMT of Consumer Automotive Oils and 1,550 TMT of Industrial Oils and Fluids. The value added lube sales (excluding base oil sales) for HPCL has increased to 267 TMT during 2011-12 from 243 TMT in the previous year representing a significant growth of 10%. HPCL commissioned 27 new Lube Distributors and CFAs in unrepresented markets during the year, further strengthening the marketing network.

 
The product range has been expanded by launching various new products of HP Milcy Turbo Tech in the Diesel engine oil category, HP Gabriel Premium Front Fork Oil in Automotive specialties category and Aurelia TI and Talusia Universal in the Marine oils category. In order to meet specific requirements of customers, HPCL also customized and launched  distinct products like Drawmet 14 S, Drawmet CABOD, Metasafe 1 AL, Cyndol TC 800, Hycom Turbo Syn 100, Seetul RFL, Enklo HVLP 100 AH, Enklo 15AH and Parthan RR 460 during the year.
 
During 2011-12, HPCL entered into new tie ups with JCB India and Force Motors for supply of lubes to their factory as well as service fill requirements. The business relationship with other major OEMs like Bajaj 
Auto, Bosch, TMTL (formerly Eicher), John Deere, TMTL (formerly Eicher), Gabriel, etc. was strengthened with portfolio expansion. HPCL continued innovation in packaging with introduction of Polypropylene Copolymer Plastic (PPCP) square bucket for 20 and 10 Litre sizes, development of new design and new closure PET bottle with special tamper evident features.
 
HPCL`s range of Agricultural Spray Oils (for Apple, Tea, Grape, etc.) was accorded approval by certifying agency "Institute for Market-ecology" (IMO), Switzerland for Organic farming.
 
The new Grease and Specialty plant at Silvassa with capacity of 5 TMT per annum for manufacturing greases, coolants and brake fluid has been fully stabilized during the year.
 
The commissioning of 227 TMTPA Group II Base Oils facility at HPCL`s Lube Refinery at Mumbai, has eliminated dependency on other sources for Group II base oils. HPCL commenced sales of Group II base oils under the brand Alprol Super grades.
 
HPCL is focused on product development and product innovation to meet customer needs and increase sales in this profitable segment of Business.
 
LPG
 
The Industry witnessed a declining growth rate in the total LPG consumption in the second half of the year. During second half of 2011-12, the growth in consumption was 5.4% compared to 9.9% during the first half of the year. The total LPG Sales for Industry was 14.7 MMT during the year with an overall growth of 7.5% over previous year.
 

HPCL continues to be the second largest LPG sales marketer in the country with a market share of 26.5% during 2011-12. The sales during the year were 3,899 TMT compared to historical sales of 3644 TMT, corresponding to a growth of 7.1% over historical sales. Domestic LPG Sales were 3,432 TMT. In the highly competitive Non-Domestic (ND) Bulk segment, HPCL continues to maintain leadership position with 40% market share.

 
In line with Vision 2015 of MOPandNG, HPCL has drawn comprehensive strategic plans to increase penetration of domestic LPG in the rural areas. During 2011-12, HPCL has commissioned 218 new distributorships under Rajiv Gandhi Gramin LPG Vitaran (RGGLV) Yojana and 46 new regular HP Gas Distributorship across India taking the total number of LPG Dealerships to 2,897. HPCL has enrolled 33.6 Lakh new customers for domestic LPG and released 20.8 Lakh double bottle connections during 2011-12. The total domestic customer population reached 3.58 Crore with 1.79 Crore customers having double bottle connections. The total customer base including non-domestic customers is 3.62 Crore as of March 31st, 2012. To have sustained competitive advantage in non-domestic segment, HPCL commissioned 10 new exclusive ND distributorship across India.
 
During 2011-12, HPCL achieved highest ever bottling of 3,747 MMT with quantum increase in productivity corresponding to 7.9% over historical. Apart from new capacity additions at Hazarwadi and Purnea LPG Plants, all LPG plants have been converted to High Speed Downstream facilities thereby increasing production rate from 1,300 to 1,500 cylinders per hour approximately. The total Bottling capacity has been increased by 675 TMT during the year to 3,610 TMTPA. The storage capacity was increased by 10.8 TMT with augmentation at Ajmer, Raipur and Nasik plants and the completion of new LPG Plants. The total storage capacity for LPG at marketing plants and import facilities is 92.3 TMT as of March 31st, 2012.
 
A major innovation was achieved at HPCL Mysore LPG Plant, wherein an in- house sealing carousel for PVC sealing of cylinders was developed giving excellent sealing quality at a very high rate of sealing.
 
As part of efforts to leverage technology, HPCL has implemented Tank Farm Management System (TFMS) interfacing with ERP at Loni, Mahul, Rajahmundry and Cherlapally LPG plants for auto closing stock recording during the year taking the total number to 6 LPG plants where TFMS-ERP interfacing has been completed.
 
LPG Infrastructure Augmentation
 
HPCL has identified development of LPG Infrastructure as a key focus area. During the year, On-line Propane-Butane blending facilities at NMPT Jetty for Mangalore LPG Import Facilities (MLIF) were commissioned. HPCL commissioned a new LPG Plant at Bathinda with capacity of 75 TMTPA and a 16 bay bulk tank truck loading gantry at a cost of Rs. 110 Crore in Mar`12. Further, a new LPG Plant at Hazira of 150 TMTPA capacity at a cost Rs. 640.000 Millions has been mechanically completed in December 2011.
 
As part of infrastructure augmentation, HPCL has taken up construction of new LPG bottling plants of capacity 150 TMTPA at Solapur and Bangalore at an estimated cost of Rs. 82.60 Crore and Rs. 140.00 Crore respectively. Land had been taken over from MIDC in Feb`12 for Solapur plant and 80% of the Land had been taken over from KIADB in Feb`12 for Bangalore plant.
 
LPG Safety initiatives
 
HPCL has launched On-line module for monitoring "HSE INDEX" of LPG plants and for prompt reporting, analysis and tracking of accidents involving HP GAS customers. HPCL has also developed a model Security plan for LPG Plants in line with OSIPP guidelines, based on which all LPG Plants have developed individual security plans.
 
Productivity improvement initiatives
 
- Project Utkarsh - Productivity Improvement Programme at LPG Plants
 
Project Utkarsh was built on Participative Management wherein plant employees at all levels came together as teams with the common objective of improving plant performance. The Project used a structured process of finding causes through validated data leveraging technology, finalizing solutions and implementing them in time bound manner through formation of Quality Circle Teams.
 
The scheme was piloted at South Central LPG zone and after refinement was rolled out to other LPG Plants Pan-India. A number of meetings were held with the plant employees over a period to learn from the experience of their colleagues giving rise to collaborative learning and synergistic team work for problem solving. Project Utkarsh provided a platform for plant employees and empowered them to show case their best talent and learning`s. By bringing changes in systems, the Project teams improved the processes and productivity significantly with focus on Safe Operating Procedures. Engagement and empowerment of people was achieved through participation management. Training program and interactive sessions were conducted at Plants at regular interval for effective implementation of the Project. The improvement in productivity is more than 30% from base level on All India basis.
 
To sustain and increase productivity further by utilizing technology, infrastructure facilities, set benchmark in productivity norms, manpower,  increase responsibility and accountability on the part of workmen and encourage participation management at floor level, a new LPG productivity Incentive scheme was signed with the unions. This incentive scheme redefined 100% productivity level of LPG plants based on defined number of production of cylinders per shift with increased benchmark of norm by 28% to 48% increase for various types of Plants over old norm.
 
Interactive sessions were conducted for the plant employees for enabling smooth implementation. With respect to new norm, significant increase in productivity was noted in 24 out of 44 LPG plants, which achieved greater than or equal to new 100% productivity norm. The productivity was greater than or equal to 90% in the remaining 19 LPG plants during 2011-12.
 
Initiatives for increasing customer service
 
- HP Anytime
 
HPCL has extended "HP Anytime", the IVR/SMS based refill booking system to 60 cities in 16 States and 2 UTs covering 1,589 distributorships and 2.2 Crore customers, representing 61% of the customers holding.
 
- Transparency portal
 
HPCL is the first oil company in the Industry to develop the "Transparency portal" for providing online information to the Citizens of India in a transparent manner. The portal provides information on the number of subsidized LPG refills consumed by individual consumers and has features for rating the distributors and logging complaints.
 
- Saksham - Training program for Corpus fund Dealers
 
To help uplift the management capabilities and customer service standards of corpus fund distributors a novel program branded "Saksham" was conceptualised. During 2011-12, a total 375 distributors were trained under in this program out of which 155 were SC/ST distributors.
 
- Ji-Haan Samarth, Training Program for LPG Deliverymen
 
To better equip the LPG delivery men with the requisite skills, knowledge and attitudes to perform in their jobs, HPCL is imparting training through Ji-Haan Samarth to LPG delivery men in 9 different regional languages. During 2011-12, training was imparted to about 11,076 LPG delivery men. In addition, exclusive training programmes were conducted for 2,150 mechanics.
 
- Samvad, Training Program for LPG Distributorship Staff
 
To equip the LPG Distributorship staff with aspects like customer handling, grievance redressal and professional conduct, HPCL is providing interactive Audio-visual training to LPG Distributorship staff. During 2011-12, training was imparted to about 5,549 LPG Distributorship staff.
 
- Suraksha Sanchetana campaign
 
To create awareness for safety in kitchen especially for the rural women, a novel campaign combining specifically designed games on kitchen safety and staging a play to communicate safety messages in an easy to understand manner under the brand Suraksha Sanchetana campaign was conducted at 164 towns spread across 8 states. In addition, a number of innovative campaigns were conducted at the field level to spread the message of safety and conservation to all LPG users.
 
Aviation
 
During the year 2011-12, HPCL achieved sales of 768 TMT in aviation fuel sales. During the year, HPCL commissioned 1(one) new ASF at Varanasi taking the total number to 34 ASFs as of 31.3.2012. Fixed storage facilities have been commissioned at
 
Mangalore and Trichy ASFs in the year. ATF Tank wagon loading facility at Mahul terminal was also commissioned during the year. To build robust operating practices, a new Operations Manual and Training Handbook have been developed during the year. Balancing growth and profitability and building capabilities will continue to be the focus areas.
 
Natural Gas
 
During 2011-12, HPCL expanded CNG retailing network in Ahmedabad by adding 5 daughter booster stations taking the total CNG network at Ahmedabad to one mother station and 20 daughter stations. The sourcing of the allocated gas from RIL was affected from Sep`11. To maintain gas supply to all CNG Stations, HPCL started sourcing RLNG from GSPL and GAIL.
 
The consortium formed by GSPC, IOCL, HPCL and BPCL has received the letter of Authorization from PNGRB for the three natural gas pipe Lines notified by PNGRB during 2010-11 i.e., Mallavaram-Bhilwara, Mehsana-Bathinda and Bathinda-Srinagar gas pipelines with a target commissioning date of July 2014. The total estimated capital expenditure is Rs. 13,706 Crore for laying these three pipelines. HPCL Board has approved capital expenditure of Rs. 452 Crore against 11% equity participation.
 
HPCL has signed a Memorandum of Understanding (MoU) with Greater Calcutta Gas Supply Corporation Limited (GCGSCL) and GAIL to form a Joint Venture Company for laying, building and operating City Gas Distribution (CGD) Network in Kolkata. PNGRB authorization for Kolkata CGD is awaited. The JVC will be formed after receiving necessary authorization from PNGRB for carrying out the project.
 
HPCL is operating CGD projects in Andhra Pradesh through Bhagyanagar Gas Ltd and in Madhya Pradesh through Aavantika Gas Ltd, both of them as Joint ventures with GAIL and other partners.
 
Operations and Distribution
 
During the year 2011-12, HPCL`s POL  installations, achieved a record throughput of 41 MMT, an increase of 6% over historical for supporting the sales performance. This was achieved by effective planning and execution in the areas of product procurement, distribution, safe operations, enhanced level of efficiency in operations leveraging automation and improved operating processes at POL Terminals and Depots.
 
HPCL has adopted the Climate Change Policy for ensuring sustainable development. During 2011-12, Carbon Footprint assessment under Scope 1, 2 and 3 under GHG Protocol Standards was completed for 15 POL installations including recommendations for carbon footprint reduction. Rain water harvesting projects have been commissioned at 18 POL installations and a Pilot project for ground water harvesting undertaken at Secunderabad Terminal.
 
In line with the directives of the government for introducing environment friendly BS IV grade fuels to more cities/towns, HPCL successfully changed over to BS IV grade fuels in 7 additional cities during 2011-12 taking the total number to 20 cities where BS IV grade fuels are being supplied. To reduce the consumption of fossil fuels and improve sustainability the Ethanol Blending Programme was implemented. During 2011-12, HPCL achieved 34.8% Ethanol Blended Petrol (EBP) supplies in the 13 states and 3 UTs where EBP program has been implemented.
 
HPCL commenced product evacuation and marketing from Guru Gobind Singh Refinery (GGSR), implemented by HMEL a Joint Venture refinery of HPCL at Bathinda with Pipeline movement from Refinery to HPCL Bathinda Installation. HMEL marketing terminal was commissioned with product receipts from the refinery and road despatches of MTO, SKO and HSD. This will ease supply constraints to markets in North India.
 
* Safety initiatives at POL Installations
 
Safety remains the focus area for HPCL. For enhanced level of terminal safety, SIL (Safety Integrity Level) study at Visakhapatnam terminal was undertaken and completed. In a major initiative, HSE Index for capturing actual performance of POL installations vis-a-vis comprehensive HSE parameters was developed and implemented at 25 POL installations for the first time.
 
- ISRS Safety Certification
 
ISRS Safety Certification is a comprehensive and integrated safety management evaluation system which indicates implementation of robust and world class safety practices. During 2011-12, ISRS Level 6 was implemented at 15 major terminals. A total to 60 POL installations have so far been awarded the ISRS Certification.
 
- CCTV Surveillance
 
For enhanced security and surveillance, CCTV has been installed under Phase I at 56 POL installations.
 
- Third party surprise inspections
 
During 2011-12, to ensure compliance to parameters on QandQ, safety and statutory norms in the contractor operated tank trucks, surprise Inspection through independent 3rd party was conducted at 42 major POL installations for contractor operated tank trucks.
 
- Project Suraksha - Safety training program
 
To enhance safety, a training program under the name "Suraksha" has been conducted at 95 POL installations across the country covering 16,000 contract workmen, tank truck crew and security personnel.
 
- Fit for the Road - Health checkup campaign
 
To ensure medical fitness of the Tank Truck (TT) crew, a unique `Fit for the Road` health check-up campaign was undertaken covering 4,500 tank truck crew wherein essential health parameters of TT crew was checked and medical consultation provided.
 
* Compliance to M B Lal Committee Recommendations
 
HPCL has been taking a leading role in the implementation of M. B. Lal Committee recommendations. Out of the total recommendations of 118 by the Committee, implementation status in respect of 113 recommendations is being regularly monitored by a Joint Implementation Committee, comprising members from Ministry, OISD and OMCs. During the year, HPCL achieved compliance to 79 Recommendations out of the total of 113 recommendations being monitored by the Joint implementation committee. Push Button of Motor Operated Valves (MOVs) at 21 POL installations have been shifted outside the dyke area. Energy efficient lighting systems have been implemented at 72 POL installations for improving the lighting in operating areas.
 
* Initiatives leveraging technology
 
To ensure access to correct data an online manual "OnD Datamine" containing comprehensive infrastructure details of all the 95 POL installations was developed and launched.
 
For effective utilization of fleet and ensuring transparency in operation an Optimised Logistics Assistant (OLA) tool was developed and piloted at Secunderabad terminal to enable scientific and optimized scheduling of product indents.
 
Terminal Automation System (TAS) for accurate deliveries and process controls has been implemented at 17 POL installations during the year taking the total number to 58 POL installations where TAS has been implemented. Out of the 58 POL installations, at 26 POL installations, Tank Farm Management Systems (TFMS) have also been integrated with the ERP stock accounting system for real time reports with the highest accuracy.
 
Initiatives for improving operational excellence
 
- Differentiated services to Dealers
 
Differentiated Services to Category `A` dealers were extended to 1,170 Retail outlet dealers and 55 Direct Sale Consumers, covering about 30 % of retail sales volume.
 
- Project Utkrisht - Improvement in Productivity for POL installations
 
To enhance productivity at POL installations through management-worker co- operation by leveraging Technology, a unique project Utkrisht was launched under Participative Management Principle, and successfully piloted at 5 POL locations during 2011-12.
 
Projects and Pipelines
 
HPCL pipelines Mumbai-Pune-Solapur pipeline (MPSPL), Visakh-Vijayawada- Secunderabad pipeline (VVSPL) and Mundra-Delhi pipeline (MDPL) achieved a record combined throughput of 13.62 MMT against the target throughput of 11.0 MMT during the financial year 2011-12. Lube Oil Pipeline achieved throughput of 338.7 TMT against the target of 286.7 TMT for the year 2011-12.
 
During the year, a "Security Index" mechanism has been formulated and implemented to measure the security preparedness of the pipelines across all the 3 operating pipelines. HPCL also introduced centralized toll free number (1800-180-1276) for all the operating pipelines to enable the public to give alerts on security/ safety incidents in case of emergency along the Right of Use (ROU) of the pipelines.
 
A number of projects are underway and are being planned to augment HPCL`s marketing infrastructure. During the year, HPCL has submitted Expression of Interest (EOI) to PNGRB for the following three (3) major pipeline projects.
 
Rewari-Kanpur Pipeline (RKPL)
 
This project envisages laying a 440 km multi-product white oil cross-country pipeline from existing tap-off station of MDPL at Rewari to a new terminal at Kanpur via existing depots at Bharatpur and Mathura.
 
Awa-Salawas Pipeline (ASPL)
 
This project envisages laying of a 92 km multi-product white oil cross-country pipeline from existing intermediate pumping station of MDPL at Awa to existing depot at Salawas.
 
Mangalore-Hassan-Bangalore-Mysore LPG Pipeline (MHBMLPL)
 
This project envisages laying a 382 km cross-country LPG pipeline from Mangalore to Bangalore via Hassan along with a 106 km spur line to Mysore.
 
The details of the major projects completed during 2011-12 are described as under:
 
New East Zone office building at Kolkata
 
A state of the art office building for East Zone has been completed at an approximate cost of Rs. 310.000 millions. The building comprises a basement and 6 floors with a total built up area of 50.1 thousand square feet.
 
GGSR product evacuation project
 
HPCL-Mittal Energy Limited (HMEL) has built the 9 MMTPA Guru Gobind Singh Refinery (GGSR), a grass root refinery near Bathinda, Punjab. Following cross country pipelines have been taken up for facilitating evacuation of MS, HSD, SKO and ATF products to Bathinda and Bahadurgarh, namely:
 
Ramanmandi - Bathinda pipeline
 
A 30 km long, 10" diameter pipeline from Bathinda to Ramanmandi. The Pipeline has been commissioned in Dec`11 at a cost of Rs. 890.000 Millions.
 
Ramanmandi-Bahadurgarh Pipeline
 
A 250 Km long, 18" diameter pipeline from Ramanmandi to Bahadurgarhat a cost of Rs. 37000.000 Millions. Pre-commissioning activities have been completed and the pipeline is awaiting receipt of product from GGSR Refinery.
 
* Tikrikalan Terminal
 
Construction of a new grass root terminal with receipt facilities from Bahadurgarh-Tikrikalan Pipeline for handling MS, HSD, SKO and Ethanol at a revised estimated cost of Rs. 94.69 Crore has been completed mechanically.
 
* Bahadurgarh -Tikrikalan Pipeline
 
The project includes laying of 2 numbers 12 km long product pipelines for MS and HSD / SKO of 8" and 10" diameter respectively. These pipelines have been laid from Bahadurgarh Terminal to Tikrikalan Terminal at an estimated cost of Rs. 600.00 Millions. The project has been completed mechanically.
 
* Replacement of 1.71 km pipeline in Mumbai-Pune-Solapur pipeline
 
Replacement of 1.71 Km pipeline in ghat section from Khopoli booster station to NRV has been completed in the Mumbai-Pune-Solapur pipeline. This initiative will help to increase the flow rate by almost 30% in the pipeline.
 
* Additional product tankages at POL Locations
 
Additional product tankages (APT) at the following POL locations was completed during the year.
 
- Irumpanam: Construction of 2 (two) number above ground storage tanks for MS/HSD with aggregate capacity of 10 TKL has been completed mechanically at a total cost of Rs. 9.9 Crore.
 
- Jaipur: Construction of 3 (three) number above ground storage tanks for MS/HSD with aggregate capacity of 13.5 TKL has been completed mechanically in Oct`11 at a total cost of Rs. 105.000 Millions.
 
- Ajmer: Construction of 4 (four) number above ground storage tanks for MS/HSD with aggregate capacity of 16.7 TKL has been completed mechanically in Mar`12 at a total cost of Rs. 128.000 Milllions.
 
- Rewari: Construction of 3 (three) number above ground storage tanks for MS/HSD with aggregate capacity of 10.7 TKL has been completed mechanically in Mar`12 at a total cost of Rs. 76.000 Millions.
 
- Bahadurgarh: Construction of 6 (six) number above ground storage tanks for ATF/MS with aggregate capacity of 45 TKL has been completed mechanically in Sep`11 at a total cost of Rs. 290.000 Millions.
 
Reconstruction of small filling plant shed, Chennai
 
Reconstruction of small filling plant shed at Chennai with an approximate area of 14,900 square feet was completed and commissioned during 2011-12 at a cost of Rs. 90.000 Millions.
 
Tank truck Gantry at Kolkata, Paradeep and Raipur Terminals
 
Tank truck Gantry at following POL installations were completed during the year.
 
Kolkata I terminal: A 2 x 8 bay tank truck gantry along with automation was commissioned at an approximate cost of Rs. 26.0 Crore.
 
Paradeep Terminal: A 1 x 4 bay tank truck gantry was commissioned at an approximate cost of Rs. 35.000 Millions.
 
Raipur Depot: A 1 x 8 bay tank truck gantry along with automation has been mechanically completed at an approximate cost of Rs. 100.000 Millions.
 
In addition to the above completed projects, a number of projects are under construction to strengthen the distribution infrastructure to cater to the increasing demand of POL products. The details of major projects and the project status are described as under:
 
White Oil Terminal at Visakhapatnam
 
The While Oil Terminal at Visakhapatnam will be the first fully automated white oil terminal including Tank wagon gantry. The total project cost is expected to be Rs. 4650.000 Millions with total tankage capacity of 168 TKL. The terminal can receive product either from refinery or coastal inputs from jetty. The infrastructure contains provision for Tank truck loading, wagon loading and shipping from this installation. The terminal was mechanically completed in Dec`11. OISD inspection is complete and compliance of recommendations is under progress. Tank Wagon Gantry work is in progress. Commissioning activities are planned during the fiscal year 2012-13.
 
LPG Terminal and Bottling Plant at Visakhapatnam
 
A new LPG Terminal and Bottling Plant has been constructed at Visakhapatnam and shall be the nerve center for LPG distribution from Visakhapatnam. The storage capacity is 4.4 TMT which is the largest capacity in HPCL Marketing. The total project cost is Rs. 2500.000 Millions. The plant has been commissioned in Mar`12 and dispatches have commenced.
 
White Oil Terminal at Ennore, Tamil Nadu
 
A new green field White Oil Terminal is being constructed at Ennore which is located on the outskirts of the Chennai City for relocating the existing Chennai terminal. The project is to provide Tankage facility of 140 TKL for storage and dispatch of MS, HSD, SKO and ATF. The terminal was mechanically completed in Dec`11. OISD and pre-commissioning activities are planned during the fiscal year 2012-13. The total project cost is expected to be Rs. 3740.000 Millions.
 
New Depot at Bokaro
 
Construction of new depot for handling black oil and white oil products is in progress at a total estimated cost of Rs. 18800.000 Millions.
 
New POL Depot at Bihta (Near Patna)
 
Construction of a new depot for handling White Oil (MS, HSD and SKO) and Black Oil (FO and Bitumen) including wagon unloading siding at an estimated cost of Rs. 1425.000 Millions is under progress. The Project is in advanced stage of completion and is expected to be commissioned in 2012-13.
 
New Depot at Kadapa
 
Construction for resitement of Kadapa depot is in progress at a total estimated project cost of Rs. 2004.000 Millions. The new depot will handle both black oil and white oil products.
 
Revamping of existing terminals
 
Revamping of existing terminals at Budge-Budge, Paradeep and Loni are being carried out at a total estimated cost of Rs. 2362.000 Millions.
 
Other infrastructure augmentation
 
Construction of new 1 x 8 Bay tank truck Gantry is in progress at Bhatinda at a total project cost of Rs. 245.000 Millions. Construction of additional 1x4 Bay Tank truck Gantry each at Ajmer and Jaipur and 1x8 Bay Tank truck Gantry at Akola, 1x6 Bay Tank truck Gantry at Amousi and 1x8 Bay and1x6 Bay Tank truck Gantries at Aonla are in progress at a total approximate cost of Rs.737.000 Millions.
 
INFORMATION SYSTEMS
 
Information systems  are being used to support all business processes of HPCL. All business transactions are carried out in Enterprise Resource Planning (ERP) system and various bolt on applications to the ERP system. Due to use of these systems, HPCL is able to reduce the time taken for closing the quarterly, half yearly and annual accounts. To ensure transparency and visibility of information across the Corporation, end-to-end processes have been configured in these systems for reducing cycle times and provide better management control.
 
Based on the foundation of ERP system, a multitude of IT enabled solutions have been developed and implemented to help managers do their job effectively. ERP platform has made possible development of real time interfaces to the IT enabled systems with various business partners. Various new initiatives have been implemented and sustained efforts continue to bring in more of these to reality.

Indent Management System (IMS)
 
To automate indenting process, HPCL has implemented an Indent Management System (IMS). Their dealers and customers are now able to send indents by SMS. Facility for placing indents through web-based customer portal has also 
 
been made available to their institutional customers. The system has enabled stage-wise tracking of indents. This has facilitated effective planning, monitoring and execution of indents.
 
e-banking
 
e-banking initiative has been expanded to cover all payments to outside parties such as vendors and contractors and even HPCL employees. HPCL has tied up with multiple banks to offer the service to the various categories of payees.
 
Payment information flows seamlessly as ERP server communicates directly with the bank servers without any manual intervention. During 2011-12, 97% of payment made to the vendors, other than that for crude purchases, has been made by electronic fund transfer.
 
During the year 2011-12, HPCL has achieved 92% of on-line fund transfer in Sales process compared to 91% in the previous year. On-line fund transfers now exceed Rs. 120000.000 Millions a month compared to Rs. 100000.000 Millions a month in the previous year. The reconciliation process is also totally automated. This initiative has enabled HPCL faster collection and better management of funds.

e-procurement
 
In the area of procurement, the platform provided by the ERP system is being used for bringing in transparency. HPCL has implemented e-procurement process wherein tenders are floated on-line and the responses are obtained from the vendors also on-line using digital signatures. Tender opening and evaluation is being done in this application and order is placed through the ERP system.
 
Portals and workflow applications
 
A customer portal is being maintained which provides complete visibility to the direct customers, dealers and distributors on their transactions with HPCL. Similarly a portal for the transporters enables them to access information pertaining to their transactions.
 
A number of work flow based applications have been implemented for employee self-service to speed up the process of benefits administration. Capital budgeting process for Non-plan projects as well as revenue budgeting process has been captured in the system through workflow based application. Two (2) unique initiatives "Samavesh" meaning `inclusion` and "Santushti" meaning `complete satisfaction` have been implemented. Both these are electronic work-flow processes and integrate with ERP as well as other on-line systems. Through these systems, the induction process and the final settlement process for separating employees are e-enabled.
 
GIS Maps based application for Retail outlets
 
HPCL has rolled out a GIS Maps based application for retail outlets. Majority of the retail outlets have been plotted on the map. This has enabled to set default route from supply POL installation and accurately measure distance which in turn has resulted in improving accuracy of calculation of freight payments.
 
Communication Infrastructure and Security

HPCL has taken a number of steps to ensure security of information systems. Robust authentication methodology has enabled us to secure their corporate network from unauthorized access. Security Operations center has been set up for continuous monitoring of systems for any security related incidents. Identity management system has been implemented. To enforce segregation of duties, implementation of GRC (Governance, Risk and Compliance) solution for ERP systems has been started. Systems Management Solution has been implemented for ensuring all PCs and laptops are patched with latest security patches to protect them.
 
HPCL continuously endeavours to leverage capabilities and upgrade IT systems with the introduction of the new technologies and evolving technologies for improving in-house processes and capabilities.
 
 
AWARDS RECEIVED
 
* SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness Commendation Certificate for the year 2010-11.
 
* Indira Gandhi Rajbhasha Puraskar for the fourth successive time for best official language implementation among Public Sector Enterprises in India on September 14th, 2011.
 
* Golden Peacock Excellence Award 2011 for Best HR practices by the Distinguished Fellow of Institute of Directors for significant contribution to business and society in Aug`11.
 
* Reader`s Digest Trusted Brand Award Gold Award 2011 for Club HP brand for the sixth consecutive year.
 
* Best Marketing campaign Award at Asia Retail Congress 2011.
 
* Brand Leadership Award 2011 in Service/Hospitality Industry at the World Brand Congress 2011 in Dec`11.
 
* Golden Peacock Award 2011 for CSR at the 6th international conference on CSR in Apr`11.
 
* MDPL received the "Golden Peacock Innovation Management Award" for the year 2011.
 
* ASIA`s best CSR Practices Award 2011 at Singapore in the category of "The Best Corporate Social Responsibility Practice (Overall)".
 
* Award for "Best Loyalty program" and "Brand excellence in Service / hospitality" at the CMO Asia Awards 2011 at Singapore.
 
* Mumbai Refinery received "Maharashtra Safety Award 2010" for achieving longest accident free period from National Safety Council, Maharashtra Chapter on September 24th, 2011.
 
* Visakh refinery was conferred with TOLIC award (Rajbhasha Puraskar) for the year in 2011-12.
 
* Conferred "Forecourt Retailer of the Year" at the Star RetailerAwards 2011 in Dec`11.
 
* HPCL bagged the Star News "Blue Dart World CSR Day Global CSR Awards powered by Star News" in two categories, viz. "Best Overall Corporate Social Responsibility Performance" and "Corporate Social Responsibility award in the sector of Education".
 
* HPCL received the CSR award from Subir Raha Centre for Corporate Governance in 4 categories, viz. "Support and Improvement in Quality of Education", "Concern for Health", "Community Development" and "Best Environmental Excellence".
 
* Santacruz ASF was awarded "Certificate of Merit" for achieving "Zero Accident Frequency Rate" for the third consecutive year under "Maharashtra Safety Award Competition -2010".
 
* HPCL received the "CII Environmental Best Practices Award 2012" for Vapour Recovery System commissioned at Loni Terminal.
 
* MDPL received OISD "1st rank in Cross Country Pipelines - Product Category" Safety Award for the year 2010-11, consecutively for the 3rd year.
 
* MPSPL was awarded "Meritorious Performance in Industrial Safety" for Trombay (consecutively for the 5th year), Khopoli and Talegaon (consecutively for the 4th year) for the year 2010 from National Safety Council, Maharashtra Chapter.
 
* National Award for "Significant Achievements in Employee Relations by the Employee Federation of India (EFI) in Oct`11.
 
* Awarded World Star 2011 for 1 litre size Metalized Rolla-pack introduced for LG.
 
* Bagged IFCA Star Award 2011 for introducing IML (In-mould Labelling) technology in Lube Industry for HP Milcy Turbo pack and for adopting HTL (Heat Transfer Label) for pails, first in Lube Oil Industry.
 
* Ajmer LPG Plant was declared silver award winner in 12th annual Greentech Environment Award in Petroleum Sector held at Srinagar on October 20th, 2011 for the 3rd consecutive year for outstanding achievement in environment Management.
 
OUTLOOK
 
The Indian economy faces moderation of growth rate coupled with high and persistent inflation. The reasons are varied and include among others slow-down in investment, supply bottlenecks and rising fiscal deficit. In this environment, Indian economy is projected to grow by about 7% in 2012-13.
 
The external environment is not encouraging. IMF is projecting a drop in global growth from about 4.0% in 2011 to about 3.5% percent in 2012 because of weak activity during the second half of 2011 and the first half of 2012. The reacceleration of activity during the course of 2012 is expected to return global growth to about 4.0% in 2013. Global economy is still fragile. Immediate concerns relate to escalation of Eurozone crisis and resultant flight from risk as well as higher oil prices resulting from geopolitical uncertainty. India is vulnerable to global economic uncertainty in view of high current account deficit.
 
JOINT VENTURES
 
The Joint Venture companies and subsidiaries of HPCL have performed well during the year 2011-12.
 
HPCL-Mittal Energy Limited (HMEL)
 
HPCL-Mittal Energy Limited (HMEL) is a joint venture between Hindustan Petroleum Corporation Limited and Mittal Energy Investments Pte Limited (MEI), Singapore, an L N Mittal Group Company, for implementation of a green field refinery project of 9 MMTPA capacity called the Guru Gobind Singh Refinery (GGSR) Project at Bathinda in the State of Punjab. Both partners hold 49% equity stake in HMEL and balance 2% is held by financial institutions i.e. IFCI Limited and State Bank of India.
 
GGSR began refining crude oil in Aug`11 and achieved commissioning of the entire project in Feb`12. It is a State of the Art refinery, incorporating latest technology. The refinery has high Nelson complexity index which will enable maximizing value added products even from heavy / sour crudes. GGSR is a zero bottom refinery incorporating features related to liquid and solid waste management.
 
A green belt around the refinery has been developed. Various environmental protection measures have been incorporated in the design of all facilities viz. Sulphur Recovery Units, Hydro-treaters, Desulphurisation Units, State-of-the-art Effluent Treatment Plants, Vapour Recovery Systems and Low NOx Burners in the furnaces.
 
Single Point Mooring (SPM), Crude Oil Terminal (COT) and the 1,017 km Crude Oil Pipeline (COPL) passing through the States of Gujarat, Rajasthan and Haryana has been set up by HMEL`s wholly owned subsidiary HPCL-Mittal Pipelines Limited (HMPL). The import facility with Single Buoy Mooring, is capable of berthing Very Large Crude Carriers (VLCCs) thus optimizing crude oil transportation cost. The world class Crude Oil Terminal is capable of blending different crude which will enable procurement of variety of crudes.
 
The refinery was dedicated to the Nation by Dr. Manmohan Singh, Hon`ble Prime Minister of India on April 28th, 2012.
 
HPCL Biofuels Limited (HBL)
 
In line with Government`s policy for blending of ethanol in petrol, a new wholly owned subsidiary company HPCL Biofuels Limited (HBL) was incorporated on October 16th, 2009 to produce ethanol.
 
Integrated plants with cane crushing capacity of 3,500 TCD with Distillery of 60 KLPD for manufacturing Ethanol and co-gen plant of 20 MW each at Sugauli and Lauriya in East and West Champaran Districts in the State of 
Bihar have been set up.
 
During the crushing season 2011-12, both the plants were commissioned and started commercial production of sugar, ethanol and power. Plant performance had been satisfactory and accident free in the first year of commercial operations.
 
CREDA-HPCL Biofuel Limited (CHBL)
 
CREDA-HPCL Biofuel Limited (CHBL) was incorporated on October 14th, 2008 as a subsidiary company with equity shareholding of 74% by HPCL and 26% by Chhattisgarh State Renewable Energy Development Agency (CREDA) to venture into alternate fuels. CHBL would undertake cultivation of Jatropha plant, an energy crop used for production of bio-diesel, on 15,000 hectares of land leased by the Government of Chhattisgarh.
 
Production of bio-diesel and its blending with normal diesel will help in meeting domestic demand. HPCL shall have exclusive rights over the producing and marketing of biodiesel and bi-products from the produce.
 
CHBL has started acquisition of land for cultivation of jatropha and has acquired 6,327 hectares of land as on March 31st, 2012. Some land is having already standing plantations. Maintenance of jatropha seedlings/nursery plants is currently  being carried out on 1,710 hectares of land. Acquisition of balance land is in progress and the plantation on the same will be undertaken in a phased manner. During 2011-12, CHBL carried out crushing of jatropha seeds on a trial basis.
 
South Asia LPG Company Private Limited (SALPG)
 
South Asia LPG Company Private Limited (SALPG), a Joint Venture Company with M/s. Total Gas and Power India (a wholly owned subsidiary of Total, France) has commissioned an underground Cavern Storage of 60 TMT capacity and associated receiving and despatch facilities at Visakhapatnam in December 2007. SALPG Cavern is the first of its kind in South and South East Asia and ranks among the deepest Caverns in the World. The commercial operations commenced in January 2008.
 
During 2011-12, SALPG received 861 TMT of LPG into the Cavern through 53 Vessels including 38 Very Large Gas Carriers (VLGCs). This has resulted into easing-out the product movement constraints across the east coast and ensured smooth availability of LPG in the supply and surrounding zones. Also, propane-butane blender at the Cavern Terminal has helped Oil Marketing Companies to maximise the propane inputs into Visakhapatnam considering the limited availability of butane and price advantage of propane in the international market.
 
SALPG achieved 6% higher turnover at Rs. 145.63 Crore and 15% higher profits (PAT) at Rs. 737.600 Millions during 2011-12 compared to previous year.
 
The Cavern cum Marine Terminal achieved 1,155,718 Safe Man-hours since commencement of commercial operations in January 2008 without a Lost Time Accident. SALPG won British Safety Council International Safety Award 2012 with distinction and secured second place in medium scale category in the EHS awards from Confederation of Indian Industry (CII) during 2012-13.
 
Hindustan Colas Limited (HINCOL)
 
Hindustan Colas Limited (HINCOL) is a joint venture company promoted by HPCL and Colas S.A. of France and was incorporated on July 17, 1995. HINCOL has grown steadily over the years to establish itself as the clear market leader in manufacturing and marketing of Bitumen Emulsions, Modified Bitumen and other value added Bituminous products.
 
HINCOL presently has eight (8) manufacturing plants across India HINCOL products find extensive use in the road construction industry.
 
During 2011-12, HINCOL has developed new formulations of bitumen (VG10 and VG30). HINCOL has also started manufacturing of Road Bond at Thane, Vashi and Savli Plant. A new efficient automatic system of drum sealing has been started at Bahadurgarh. A "Dynamic Shear Rheometer" installed to evaluate rutting resistance and fatigue resistance properties of bituminous binder and to grade the binders as per Performance Grading Standard. HINCOL is the first non-R and D institution to have installed this `State of Art` testing equipment. HINCOL implemented Emulfix process at all the plants and commenced Emulsion sales from Haldia Plant.
 
HINCOL recorded a production of 146.38 TMT with turnover of Rs.4224.300 Millions and earned net profit (PAT) of Rs.264.400 Millions. HINCOL declared dividend of 125% for the year 2010-11.
 
Prize Petroleum Company Limited (PPCL)
 
HPCL, in partnership with ICICI and HDFC, had formed a Joint Venture E and P Company called Prize Petroleum Company Limited (PPCL) for participating in exploration and production of hydrocarbons on October 28th, 1998. Over the years, Prize Petroleum Company Limited (PPCL) has built up a portfolio of 2 producing fields and one exploration block.
 
During 2011-12, HPCL acquired the entire equity shareholdings of ICICI Group and HDFC in PPCL and thus PPCL became wholly owned subsidiary of HPCL.
 
PPCL had signed Service Contract with ONGC for development of Hirapur marginal field in Cambay Basin with 50% holding in the consortium. PPCL is operator for the field. During 2011-12, 43,082 barrels of crude oil (cumulative production of 283,150 barrels since inception) has been produced. PPCL had also entered into a Production Sharing Contract (PSC) with 50% Participating Interest inSanganpur Block as Joint Operator. During 2011-12, 506 barrels of crude oil (cumulative production of 12,248 barrels from inception) has been produced. The crude produced is benchmarked to Bonny light crude.
 
The company was awarded South Rewa Block in Madhya Pradesh under NELP-VI which is the biggest onshore exploration Block with 13,277 sq. km area. PPCL is the Operator for this block. During 2011-12, processing and interpretation of 2D (2,050.68 lkm of full fold) and 3D (303.96 sq.km of full fold) seismic data has been completed. Basis this, three major prospects were identified for drilling of wells, as committed in the Minimum Work Program. API of Geochemical Survey awarded to NGRI has also been completed. The result of the survey is used for analysis of soil samples to identify concentration and or presence of light hydrocarbons in the block.
 
PPCL bagged onshore exploration block (401sq. kms area) in Tripura along with consortium partner ABG Energy Limited (ABG) in NELP IX. PPCL is the operator for this block with a participating interest of 20% and will be "carried" during the initial exploration phase. In the event of commercial discovery and consortium entering the Development phase, PPCL will pay only 10% for the past cost (which will be recovered by ABG from `profit petroleum`) and will continue to hold 20% participating interest.
 
Petronet MHB Limited (PMHBL)
 
HPCL, along with Petronet India Limited (PIL) promoted Petronet MHB Limited (PMHBL) for construction of Mangalore-Hassan- Bangalore Pipeline at a cost of Rs. 667 Crore with debt equity ratio of 3:1. The joint venture company was incorporated on July 31, 1998. Initially PIL and HPCL each contributed 26% towards equity. ONGC joined as a strategic partner in PMHBL by taking 23% equity in April 2003. Post debt restructuring of PMHBL, the equity holding of HPCL and ONGC increased to 28.766% each and PIL`s equity holding decreased to 7.90%.The Pipeline is meeting the transportation needs between Mangalore-Hassan-Bangalore.
 
During 2011-12, PMHBL achieved 7.57% higher throughput at 2.771 MMT as compared to 2.576 MMT in 2010-11. Revenue generation was higher by 10.16% at Rs. 866.400 Millions as compared to Rs. 86.500 Millions in the previous year.
 
PMHBL Integrated Management System is certified by DNV covering Quality Management System-ISO-9001-2008, Environmental Management System-ISO-14001-2004 and OHSAS-18001-2007.
 
GPRS based Security Tracking System (STS) was commissioned for monitoring movement of security line walker`s movement on PMHBL Right of Use (ROU) land. Telecom System up-gradation and CCTV camera installation were carried out at PMHBL Main Stations.
 
Bhagyanagar Gas Limited (BGL)
 
Bhagyanagar Gas Limited (BGL) was incorporated on August 22, 2003 as a Joint Venture Company by GAIL (India) Ltd and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors, in the state ofAndhra Pradesh.
 
BGL has been authorized to set up City Gas Distribution networks in Hyderabad, Vijayawada and Kakinada by MOPandNG and PNGRB.
 
During 2011-12, BGL commissioned Mother Station at Shamirpet, Hyderabad and Vakalpudi, Kakinada. BGL also commissioned one online CNG stations at APSRTC depot, two Daughter booster CNG stations in APSRTC depotsat Hakimpet and Cantonments and 4 CNG DBS retail stations in Hyderabad / Secunderabad. Project work in respect of three CGD Projects at Hyderabad, Vijayawada and Kakinada are in progress. BGL has started supplying PNG to households at Shamirpet and Medchel in Hyderabad. For Industrial and Commercial PNG, BGL has signed Heads of Agreement with various industrial and commercial units for supply to the tune of 0.376 MMSCMD in Hyderabad and 0.2 MMSCMD in Kakinada.
 
Aavantika Gas Limited (AGL)
 
Aavantika Gas Limited (AGL) was incorporated on June 07, 2006 as a Joint Venture Company by GAIL and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors in the State of Madhya Pradesh.
 
AGL has been authorized by MOP and NG as well as PNGRB for carrying City Gas Distribution (CGD) operations at Indore, Ujjain and Gwalior. The company commenced commercial operations in the year 2008.
 
During 2011-12, the company commissioned one online station at Gwalior marking the starting of business operations at Gwalior. With this AGL is now present in all three cities viz. Indore, Ujjain and Gwalior, for which AGL has been authorised. AGL also commissioned one online station at Indore. AGL now operates 11 CNG stations - 7 daughter stations (5 at Indore and 2 at Ujjain), 3 online stations (2 at Indore and 1 at Gwalior) and 1 mother station at Indore.
 
AGL also started supplying PNG to domestic customers from Dec`11. With this AGL is now present in all the 4 business segments viz. CNG for Transportation sector and PNG for industrial, commercial and domestic sectors. Work for construction of Mother Station at Gwalior is nearing completion and is expected to be commissioned by May/Jun`12. During 2011-12, AGL achieved turnover of Rs. 547.300 Millions registering a growth of 141 % over previous year.
 
MANGALORE REFINERY AND PETROCHEMICALS LIMITED (MRPL)
 
HPCL holds an equity of 16.95% in the 9 MMTPA Mangalore Refinery and Petrochemicals Ltd. (MRPL). HPCL and MRPL have been exchanging intermediate process streams between their refineries to supplement efforts to meet new environmental norms in respect of products like MS and HSD on mutually agreed terms. MRPL declared a dividend of 10% for 2011-12. 
 

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

(Rs. in millions)

PARTICULARS	31.03.2012	31.03.2011
(I)Contingent Liability not provided for, in respect of: -
i. Sales Tax/Octroi	144.800	144.800
ii. Excise/Customs	340.100	287.100
iii. Employee Benefits/Demands (to the extent quantifiable)	1671.600	1527.300
iv. Claims against the Corporation not acknowledged as debts	2376.900	1697.900
v. Others	2672.500	2147.900
	7206.000	5805.000
(II)Uncalled liability on partly paid up preference shares	--	70.000
	--	70.000
(III) Guarantees given
To others	5.051	2200.100
On behalf of subsidiaries/ Joint ventures	--	1494.500
	5.051	3694.600

FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2013

(Rs. In millions)

Particulars	(Unaudited)		(Audited)
	Quarter Ended		Year Ended
	31.03.2013	31.03.2013	31.03.2013
PART 1 A FINANCIAL PERFORMANCE 1 Income from operations Sales/Income from Operations Less: Excise Duty Paid	638770.800 (26391.700)	551649.600 (24139.500)	2156754.900 (91461.500)
(a) Net Sales/Income from Operations	612379.100	527510.100	2065293.400
(b) Other Operating Income	(15479.200)	6628.800	2019.200
Total Income from operations (net)	596899.900	534138.900	2067312.600
2 Expenditure
(a) Cost of materials consumed	177011.200	170349.100	631826.100
(b) Purchases of stock-in-trade	302831.400	312783.700	1281786.000
(c) Changes In inventories of finished goods,
work-in-progress and stock-in-trade	13135.400	14103.500	8094.500
{d) Employee benefits expense	3653.300	5303.400	25255.600
(e) Depreciation and amortisation expense	4914.300	4946.600	19344.200
(f) Other Expenditure	13921.500	20892.600	77090.900
Total Expenses	515467.100	528378.900	2043397.300
3 Profit/loss) from Operations before Other Income,
Finance Costa Exceptional Items (1-2)	81432.800	5760.000	23915.300
4 Other Income	3910.400	2046.300	11023.600
5 Profit/(Loss) from ordinary activities before Finance Cost & Exceptional Items (3+4)	85343.200	7806.300	34938.900
6 Finance Cost	2851.600	6335.200	20193.300
7 Profit/(Loss) from ordinary activities after Finance Cost but before Exceptional Items (5-6)	82491.600	1471.100	14745.600
8 Exceptional Items - Expenses/ (Income)	-
9 Profit/(Loss) from Ordinary Activities before tax	82491.600	1471.100	14745.600
10 Tax Expense	5698.500	-	5698.500
11 Net Profit/Loss) from Ordinary Activities after tax
(9-10)	76793.100	1471.100	9047.100
12 Extraordinary Items (net of tax expenses)		-	-
13 Net Profit/(Loss) for the period (11-12)	76793.100	1471.100	9047.100
14 Minority Interest	-	-	-
15 Net Profit/(Loss) for the group (14-15)	76793.100	1471.100	9047.100
Paid up Equity Share Capital (Face value Rs.10/- 16 each)	3386.300	3386.300	3386.300
Reserves excluding Revaluation Reserves as per Balance Sheet			133873.900
18 Earnings Per Share:
(1) Basic and Diluted before extraordinary Item (Rs.)			26.72
(II) Basic and Diluted after extraordinary item (Rs.)			26.72
19 Debt Service Coverage Ratio (DSCR) (No. of times) *			1.38
20 Interest Service Coverage Ratio (ISCR) (No, of times) **			2.69
B PHYSICAL PERFORMANCE (in MMT )
Crude Thruput	4.32	4.22	15.78
Market Sales (Including Exports)	7.75	7.73	30.32
Pipeline Thruput	3.70	3.65	14.04

*Debt Service Coverage Ratio (DSCR) = Profits after Tax but before Depreciation and Interest/ (interest + Principal Repayment of Long Term Loans),

** Interest 5ervlce Coverage Ratio (ISCR) = Profits before Depreciation, Interest and Tax / Interest.

PART II

SELECTED INFORMATION FOR THE YEAR ENDED 31st MARCH, 2013

Particulars	(Unaudited)		(Audited)
	Quarter Ended		Year Ended
	31.03.2013	31.12.2012	31.03.2013
a particulars of shareholding
1 Public Shareholding
Number of Shares	165,550,500	165,550,500	165,550,500
Percentage of Shareholding [%)	48.89	48.89	48.89
1 Promoters and Promoter Group Shareholding
(a) Pledged/Encumbered
- Number of Shares	NIL	NIL	NIL
- Percentage of Shares	NIL	NIL	NIL
(b) Non - encumbered
- Number of Shares	173,076,750	173,076,750	173,076,750
- Percentage of Shares (as a % of total shareholding of
Promoter and Promoter Group)	100	100	100
- Percentage of Shares (as a % of total share capital of
the Company)	51.11	51.11	51,11

Note

1. The Board has recommended a final dividend of Rs. 8.50 per share.

2. The Audited Accounts are subject to review by the Comptroller and Auditor General of India under section 619(4} of the Companies Act 1956.

3. Average Gross Refining Margins during the year ended March 13, were US $ 2.08 per BG Las against US $ 2.39 per 8BL during the corresponding previous year.

4. The prices of PD5 Kerosene and Domestic LPG are subsidised as per the scheme approved by the Government of India. During the current year ended March 2013, Subsidy amounting to Rs. 6664.100 millions (April - March 2012: Rs. 6728.300 millions) has been accounted at 1/3^rd of the subsidy rates for 2002-03 as approved by the Government,

5. Based on the approval received from Government of India, the Company has accounted for Budgetary Support amounting to Rs. 248252.800 millions for the period April – March 2013 (April - March 2012 : Rs. 183427.700 millions) against under-recoveries on sale of sensitive petroleum products for the period April March 2013.

6. During the year ended March 2013, discount from upstream oil companies, viz., ONGC and GAIL, amounting to 7111885.300 millions (April - March 2012 : Rs. 120797.500 millions) In respect of Crude Oil, PDS Kerosene, and Domestic LPG purchased from them has been accounted.

7. The Employee cost for the year 2012-13 includes Rs. 8130.000 millions towards Implementation of Long Term Settlement of Non-management employees and Superannuation Benefits for all the employees finalized during the year. Including for the past periods.

8. The figures for the quarter ended 31^st March 2013 are the balancing figures between the audied financial results for the year ended 31st March 2013 and the unaudited financial results for the nine months ended 31^st December 2012.

9. Statement of Assets and Liabilities as per clause 41 (y) (h) of the Listing Agreement.

(Rs. In millions)

Particulars	(Audited)
	Year Ended
	31.03.2013
A EQUITY AND LIABILITIES
1 Shareholder's Funds
(a) Share Capital	3390.100
(b) Reserves and Surplus	133873.900
Sub - total - Shareholders' funds	137264.000
2 Share application money pending allotment
3 Minority Interest
4 Non- Current Liabilities
(a) Long-term borrowings	89471.800
(b) Deferred tax liabilities {net)	35983.500
(c) Other long-term liabilities	62111.900
(d) Long-term provisions	4989.600
Sub-total - Non-current liabilities	192556.800
5 Current liabilities
(a) Short-term borrowings	235110.900
(b) Trade payables	110369.400
(c) Other current liabilities	69140.800
(d) Short-term provisions	18005.400
Sub-total - Current liabilities	432626.500
TOTAL - EQUITY AND LIABILITIES	762447.300
B ASSETS
1 Non-current assets
(a) Fixed assets	277215.700
(b) Goodwill on Consolidation	-
(b) Non-current Investments	82660.700
(c) Long-term loans and advances	19304.700
(d) Other non-current assets	959.800
Sub-total - Non-current assets	380140.900
2 Current assets
(a) Current investments	23608.600
(b) Inventories	164387.000
(c) Trade receivables	49350.400
(d) Cash and Bank Balances	1471.300
(e) Short-term loans and advances	140703.600
(f) Other current assets	2785.500
Sub-total - Current assets	382306.400
TOTAL-ASSETS	762447.300

10 Previous period's figures have been regrouped/reclassified wherever necessary

SEGMENT-WISE RESULTS

(Rs. In millions)

	(Unaudited)		(Audited)
Particulars	Quarter Ended	Quarter Ended	Year Ended
	31.03.2013	31.12.2012	31.03.2013
1 SEGMENT REVENUE
a) Downstream Petroleum	598003.400	534557.000	2069719.300
b) Exploration and Production of Hydrocarbons	-	-	-
Sub-Total	598003.400	534557.000	2069719.300
Less: Inter-Segment Revenue	-		-
TOTAL REVENUE	598003.400	534557.000	2069719.300
2 SEGMENT RESULTS
a) Profit/(Loss) before Tax, Interest
Income, Interest Expenditure
and Dividend from each Segment
i) Downstream Petroleum	82394.500	5949.800	25407.500
li) Exploration and Production of Hydrocarbons	(142.000)	(178.900)	(548.100)
Sub-Total of (a)	82252.500	5820.900	24859.400
b) Finance Cost	2851.600	6335.200	20193.300
c) Other Un-allocable Expenditure
(Net of Un-allocable Income)	(3090.700)	(1985.400)	(10079.500)
Profit/(Loss) before Tax (a-b-c)	82491.600	1471.100	14745.600
3 CAPITAL EMPLOYED
(Segment Assets- Segment Liabilities)
a) Downstream Petroleum	223822.700	109581.900	223822.700
b) Exploration and Production of Hydrocarbons	(6257.500)	(6115.500)	(6257.500)
c) Others (Unallocated-Corporate)	76272.200	83594.200	76272.200
Total	293837.400	187060.500	293837.400

FIXED ASSETS:

v Tangible Assets

• Land – Freehold
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Transport Equipment
• Office Equipment
• Roads and Culverts
• Leasehold Property – Land
• Railway Siding and Rolling Stock
• Unallocated Capital Expenditure on Land Development
• Assets held for Disposal

v Intangible Assets

• Rights of Way
• Technical/ Process Licenses
• Software

PRESS RELEASE

HPCL Q4 PROFIT UP BY 66%

Hindustan Petroleum Corporation Limited has registered gross sales of Rs. 2156750.000 millions for the year 2012-13 as against Rs. 1881310.000 millions in the previous year representing an increase of over 14.6 %. The sales of petroleum products in the domestic market were at an all time high of 29.07 million tonnes during the year 2012-13, registering an increase of 4.6 % over the previous year, as against the industry growth rate of 3.6 %. The pipeline thruput increased to 14.04 million tonnes as compared to 13.62 million tonnes in the previous year.

The refineries at Mumbai and Visakh processed 15.78 million tonnes of crude during the year. The combined GRM during the year was US $ 2.08 /bbl.

On the financial front, the Profit after Tax (PAT) for January – March, 2013 increased by 66 % to Rs. 76790.000 millions, up from Rs. 46310.000 millions in the corresponding quarter of previous year. This was primarily because of higher compensation for under-recoveries during the quarter, higher marketing margins and better inventory management.

The Profit before Tax (PBT) for the full year 2012-13 was also higher by 21% at Rs. 14750.000 millions as compared to Rs. 12190.000 millions in the previous year. However, the Profit after Tax (PAT) for the full year 2012-13 was Rs. 9050.000 millions as compared to Rs. 9110.000 millions in the previous year, mainly due to higher provision for tax.

For the year 2012-13, HPCL has proposed a dividend of Rs. 8.50 per share. The dividend would result in a total payout of Rs. 3370.000 millions including dividend distribution tax.

During March, 2013, a Memorandum of Understanding (MoU) was signed between HPCL and Government of Rajasthan for setting up a state-of-the-art 9 MMTPA Refinery-cum-Petrochemical complex in Barmer District of Rajasthan. The project will be setup in partnership of HPCL, Government of Rajasthan and others. The proposed refinery will be setup at an estimated capital investment of Rs. 372300.000 millions. The project is expected to take about 4 years for going on stream after getting approval from Government of India.

CMT REPORT (Corruption, Money Laundering and Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration:

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration:

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime:

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws:

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards:

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government:

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package:

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report:

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.70
UK Pound	1	Rs.91.14
Euro	1	Rs.77.98

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		78

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial and operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.