Physical Performance of the Refinery
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To be a vibrant, growth oriented energy company of naƟ onal standing and global reputaƟ on having core competencies in Refi ning and MarkeƟ ng of petroleum products commiƩ ed to aƩ ain sustained excellence in performance, safety standards, customer care and environment management and to provide a fi llip to the development of the region. • Develop core competencies in Refi ning and MarkeƟ ng of petroleum products with a focus on achieving internaƟ onal standards on safety, quality and cost. • Maximise wealth creation for meeting expectations of stakeholders. • Create a pool of knowledgeable and inspired employees and ensure their professional and personal growth. • Contribute towards the development of the region. Chairman’s Message 2 Notice to the Shareholders 6 Performance Profi le 10 Directors' Report 22 Annexures to Directors' Report 42 Independent Auditors' Report 64 Annexure to Independent Auditors’ Report 67 Comments of Comptroller & Auditor General of India 71 Balance Sheet 72 Statement of Profi t & Loss 73 Cash Flow Statement 74 Notes to Financial Statements 77 Human Resource Accounting 104 Social Accounts 105 Economic Value Added 106 2 Dear Shareowners, It gives great pleasure to be communicating to you at the end of what has been a very tough year for Numaligarh Refi nery Limited. The major fi re incident at the beginning of the year, the volatile conditions in the international oil markets and the overall economic slowdown were some of the challenges that we encountered. I am very happy to inform you that notwithstanding these problems, NRL was able to register another year of profi table operations in 2012-13. It is a matter of great pride that the distillate yield of the refi nery in 2012-13 is the highest amongst all the public sector refi neries in the country. Utilisation of natural gas during the year to the extent available in lieu of Naphtha as fuel and feed has brought down operating costs besides improving distillate yield and generating redeemable carbon credits. Fuel and loss as well as specifi c energy consumption were restricted to the extent possible. During the year, the Company’s retail network was seamlessly handed over to BPCL for curtailing retail-under-recoveries. Joint efforts of NRL and BPCL refi neries helped in optimising process operations and product yields. Such measures refl ect the synergy that exists among the BPC group companies. The implementation of the Wax project gained momentum during the year and on completion, high value paraffi n and micro-crystalline Wax would get added to NRL’s product slate. The Naphtha Splitter project has been mechanically completed and is under commissioning. This project has paved the way for production of petrochemical grade Naphtha for supply as feedstock to the upcoming Assam Gas Cracker project. These projects will bring in signifi cant value for the Company and its stakeholders. NRL continues to explore opportunities for growth in the years ahead. We are examining the feasibility of expanding the refi ning capacity. There will be challenges in terms of sourcing and moving crude oil over a long distance. However, I remain confi dent that NRL with its highly skilled and motivated team will be successful in the endeavour to scale up operations so as to achieve long term sustenance and growth. Even as we seek opportunities for the growth of our business, we remain focused on discharging our obligations to society and in particular to bring about improvement in the lives of the community living in the neighbouring areas of the refi nery. NRL continues to give the highest priority and emphasis to agri/allied income generation activities, health, education, promotion of sports and culture. Various projects on Sustainable Development and R&D activities are also being pursued. The Company has emerged as a premier business institution in the North East region. This would not have been possible without the unstinted support of all the stakeholders. At the same time we recognise that we can aspire for and scale greater heights and thereby bring value to the stakeholders. Warm Regards, R K Singh Chairman 3 Shri R. K. Singh Chairman Bankers Auditors State Bank of India UCO Bank Messrs S. Ghose & Co. HDFC Bank IndusInd Bank Chartered Accountants United Bank of India Axis Bank 11, Old Post Offi ce Street Union Bank of India ICICI Bank 2nd Floor, Kolkata - 700001 Canara Bank Refi nery Unit Registered Offi ce Co-ordination Offi ce Marketing, BD & Project Offi ce Pankagrant 122A, G. S. Road Tolstoy House, 6th Floor NEDFi House, 4th Floor Numaligarh Refi nery Complex Christianbasti 15 - 17 Tolstoy Marg G. S. Road, Dispur Golaghat District, Assam Guwahati - 781005 New Delhi - 110001 Guwahati - 781006 Pin - 785699 4 Shri Dipak Chakravarty Shri S. R. Medhi Shri S. K. Barua Shri Nilmoni Bhakta Managing Director Director (Technical) Director (Finance) Director (Finance) [w.e.f 01-05-2013] [up to 30-04-2013] Shri J. P. Rajkhowa Shri H. S. Das Shri R T Jindal Shri S K Srivastava Director Director Director Director [up to 11-12-2012] [up to 24-07-2013] Shri K. K. Gupta Shri B. K. DaƩ a Shri L. Rynjah Shri B. P. Rao Dr. A. K. Ghoshal Director Director Director Director Director [up to 24-07-2013] [up to 24-07-2013] [w.e.f 28-06-2013] [w.e.f 28-06-2013] [w.e.f 28-06-2013] Management Team Mr. Amit Mohan Prasad, IAS Chief Vigilance Offi cer Mr. A. K. Senapa DGM (Fire & Safety) Mr. A. P. Chakraborty DGM (Commercial & Legal) Mr. A. K. Bha acharya GM (Marke ng, BD & CP) Mr. D. Choudhury DGM (Internal Audit) Mr. B. Ekka GM (HR) Mr. G. N. Sarma DGM (Maintenance) Mr. D. Ghosh GM (Opera on) Mr. N. Borthakur DGM (Co-ordina on) Mr. P. K. Barua DGM (Finance) Mr. M. R. Baruah GM (Tec. Services & Project) Mr. Pankaj Kr. Baruah DGM (Maintenance Planning) Mr. S. D. Maheshwari GM (Finance) Mr. S. Chakraborty DGM (Project) 5 6 Notice is hereby given that the 20th Annual General Meeting of the Shareholders of Numaligarh Refi nery Limited will be held at Hotel Brahmaputra Ashok, M. G. Road, Guwahati-781001 on Friday, the 6th September, 2013 at 3.00 P.M. to transact the following Ordinary and Special Businesses. A. Ordinary Business 1. To receive, consider and adopt the Audited Statement of Profi t & Loss for the year ended 31st March, 2013 and the Balance Sheet as on that date along with Reports of the Board of Directors and Auditors and the Comments of the Comptroller & Auditor General of India thereon. 2. To declare dividend. 3. To appoint a Director in place of Shri S.K. Srivastava, who retires by rotation in pursuance of Section 256 of the Companies Act,1956. Shri S.K. Srivastava, being eligible, offers himself for re-appointment. 4. To appoint a Director in place of Shri R.T. Jindal, who retires by rotation in pursuance of Section 256 of the Companies Act,1956. Shri R.T. Jindal, being eligible, offers himself for re-appointment B. Special Business 5. Appointment of Director To consider and, if thought fi t, to pass the following Resolution, with or without modifi cation(s), as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956, Shri S. K. Barua, be and is hereby appointed as Director of the Company.” 6. Appointment of Director To consider and if thought fi t, to pass the following Resolution with or without modifi cation(s), as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956, Shri L. Rynjah, be and is hereby appointed as Director of the Company.” 7. Appointment of Director To consider and if thought fi t, to pass the following Resolution with or without modifi cation(s), as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956, Shri B.P. Rao, be and is hereby appointed as Director of the Company.” 8. Appointment of Director To consider and if thought fi t, to pass the following Resolution with or without modifi cation(s), as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956, Dr. Aloke Kumar Ghoshal, be and is hereby appointed as Director of the Company.” Registered Offi ce: By Order of the Board of Directors 122 A, G. S. Raod Sd/- Christianbasti, Guwahati-781005 H. K. Sarmah Date : 12th August, 2013 Company Secretary Note: 1. Explanatory statement under Section 173 of the Companies Act, 1956, in respect of the above items of Special Business is annexed hereto. 2. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies, in the alternative, to attend and vote instead of himself and such proxy need not be a member. Proxies, in order to be effective, should be duly completed & affi xed with the revenue stamp and be deposited at the Registered Offi ce of the Company not less than forty eight hours before commencement of the Meeting. 3. In order to help us in providing appropriate answers backed by relevant fi nancial data, the shareholders may please send their queries that they would desire to raise at the AGM at least one week in advance to the Company Secretary at the Registered Offi ce. 7 Explanatory Statement for the Special Business pursuant to Section 173 of the Companies Act,1956 Following are the Explanatory Statements in respect of item No.