चेन् ꅈ पे絍셋लियम कॉपꥋ रे श् लिलमटेड (इंडियनऑयल की 嵍प셁 कमपनी) Chennai Petroleum Corporation Limited (A group company of IndianOil) Expanding Capacity Increasing Efficiency 54th Annual Report 2019-20 TABLE OF CONTENTS Corporate Information 02 Board of Directors 03 Executives 04 Ten Years Profile 05 Notice 07 Report on Corporate Governance 15 Directors’ Report 2019-20 37 Annexure - I (Dividend Distribution Policy) 52 Annexure - II (Energy Conservation, Technology Absorption and Foreign Exchange Earnings) 53 Annexure - III (SC/ST/OBC Report - I & II) 55 Annexure - IV (Annual Report on CSR Activity) 56 Annexure - V (Compliance Certificate on Corporate Governance) 60 Annexure - VI (Management Discussion and Analysis) 61 Annexure - VII (Business Responsibility Report 2019-20) 65 Annexure - VIII (Form No. MR-3) - Secretarial Audit Report 76 Annexure - IX (Related Party Disclosures) 79 Annexure - X (Form No. MGT 9) 83 Independent Auditors’ Report (Standalone Financial Statements) 94 Standalone Balance Sheet 104 Standalone Statement of Profit and Loss 105 Standalone Statement of Changes in Equity 106 Standalone Statement of Cash Flows 107 Notes forming part of the Standalone Financial Statements 109 Independent Auditors’ Report (Consolidated Financial Statements) 165 Consolidated Balance Sheet 173 Consolidated Statement of Profit and Loss 174 Consolidated Statement of Changes in Equity 175 Consolidated Statement of Cash Flows 176 Notes forming part of the Consolidated Financial Statements 178 Comments of the Comptroller and Auditor General of India (Standalone Financial Statements) 237 Comments of the Comptroller and Auditor General of India (Consolidated Financial Statements) 238 E-Communication Registration Form 239 Vision To be the most admired Indian energy company through world class performance creating value for stakeholders Mission To manufacture and supply petro products at competitive prices & meeting the quality expectations of the customer To pro-actively fulfill social commitments, including environment and safety To constantly innovate new products and alternate fuels To recognize Human Resources as the most valuable asset and foster a culture of participation for mutual growth To ensure high standards of business ethics and corporate governance To maximize growth, achieve national pre-eminence and maximize stakeholders wealth 54TH Annual Report 2019-20 1 Corporate Information REGISTERED OFFICE Sreedhar, Suresh & Rajagopalan LLP No. 536, Anna Salai, Teynampet, Chartered Accountants Chennai – 600 018. Green Haven Apartments Phone : 044-2434 9833 Door No 3B, 26, 3rd Main Rd, Gandhi Nagar, Adyar, REFINERIES Chennai – 600 020 Phone: 044- 2445 3159 Manali Refinery, Manali, E-mail id: [email protected] Chennai – 600 068. Website: www.ssrcas.co.in Phone: 044-2594 4000 Cauvery Basin Refinery COST AUDITORS Panangudi Village, Nagapattinam District, Vivekanandan Unni & Associates Tamil Nadu 1-A, Vedammal Avenue, Phone : 04365-256700 Dr. Subaraya Nagar Main Road, E-mail : [email protected] Behind Petrol Bunk Website : www.cpcl.co.in Kodambakkam, Chennai – 600 024. REGISTRAR & TRANSFER AGENT Mobile No. 98411 50811 / 94459 28279 M/s.K Fintech Technologies Pvt Ltd Selenium Tower B, Plot 31-32, E-mail : [email protected] Gachibowli Financial District, Nanakramguda, [email protected] Hyderabad – 500 032. Phone: 040-6716 2222 SECRETARIAL AUDITOR E-mail id: [email protected] M/s. A.K. Jain & Associates Website: www.kfintech.com No.2 (New No. 3), Raja Annamalai Road First Floor, Purasaiwalkam PRINCIPAL BANKER Chennai – 600 084 Tel.: 044 2665 1224 State Bank of India Corporate Accounts Group Branch, Egmore, Chennai – 600 006. STOCK EXCHANGES Phone: 044-2857 6176 BSE Limited P.J.Towers, Dalal Street, Mumbai 400 001. PUBLIC INFORMATION OFFICER Website: www.bseindia.com Mr. C.K. Ravikumar, Dy. General Manager (Admin) National Stock Exchange of India Ltd., (NSE) Phone: 044-25944499 Exchange Plaza, 5th Floor, Plot C/1, ‘G’Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051. COMPLIANCE OFFICER Website: www.nseindia.com Mr. P. Shankar DEBENTURE TRUSTEE Company Secretary SBICAP Trustee Company Ltd. Phone: 044-2434 6807 6th Floor, Apeejay House, 3, Dinshaw Wachha Road, AUDITORS Churchgate, Mumbai 400 020 Padmanabhan Ramani & Ramanujam Tel: (O) 022 - 4302 5555 Chartered Accountants E-mail : [email protected] Website : www.sbicaptrustee.com 1F, Arudhra, No.15, Habibullah Road, T.Nagar, Chennai – 600 017. Phone: 044-4550 2181 E-mail : [email protected] 2 Chennai Petroleum Corporation Limited Board of Directors Mr.S.M. Vaidya Non-Executive Chairman Mr.S.N.Pandey Mr.Rajeev Ailawadi Mr.R.Srikanthan Mr.S.Krishnan Managing Director Director(Finance) Director(Technical) Director(Operations) Ms.Perin Devi Mr.Mohammad Mr.Babak Government Nominee Director Bagher Dakhili Bagherpour Mr.D.Duraiganesan Independent Director Nominee Director Nominee Director Naftiran Intertrade Co Ltd Naftiran Intertrade Co. Ltd Tehran, Iran Tehran, Iran Mr.Manoj Sharma Mr.Amitabh Mathur Mr.Myneni Narayana Rao Mrs.Sobha Surendran Exe Director (O) Independent Director Independent Director Independent Director IOC Limited 54TH Annual Report 2019-20 3 Executives Mr. J.T.Venkateswarlu Chief Vigilance Officer Mr. B. Panneerselvam Chief General Manager (Technical) Mr. P. Subrahmanyam Chief General Manager (Corporate Planning) Mr. Tarlana Kamaraju Chief General Manager (Logistics) Mr. M. Sankaranarayanan Chief General Manager (HR & Legal) – Upto 31.07.2020 Mr. V. Shankar Chief General Manager (CBR-9 MMTPA) Mr. M.S. Raghunathan Chief General Manager (Finance) Mr.P.Jeevankumar Chief General Manager (Projects and Development/R&D) Mr. T.N.K.Bapiraju Chief General Manager (Operations) Mr. S. Shanmugasundaram Chief General Manager (Maintenance / Power & Utilities) Mr. M. Tamizh Muthalvan Chief General Manager (Human Resources) (from 01.08.2020) Mr. P. Shankar Company Secretary 4 Chennai Petroleum Corporation Limited Ten Years Profile WHAT WE OWE AND WHAT WE OWN (` in Crore) 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 What We Owe Equity Share Capital 149 149 149 149 149 149 149 149 149 149 Reserves 3617 3644 1877 1573 1506 2212 3165 3708 3161 1043 Networth 3766 3793 2026 1722 1655 2361 3314 3857 3310 1192 Preference Share - - - - - 1042 1080 1080 547 572 Capital Borrowings 4223 3672 5906 5600 5600 5399 3567 4501 6121 8126 Deferred Tax Liability 604 638 707 703 - - 24 206 121 - Total 8593 8103 8639 8025 7054 6970 8919 8554 10099 9890 What We Own Fixed Assets 6246 6886 8056 8166 8176 4379 4456 6829 8341 8889 Less: Depreciation 2828 3185 3499 3882 4106 265 578 940 1387 1876 Fixed Assets 3418 3701 4557 4284 4070 4114 3878 5889 6954 7013 (Net WDV) Intangible Assets 42 48 48 49 49 6 7 28 28 28 Less: Amortisation 25 33 37 41 42 1 2 3 5 6 Intangible Assets 17 15 11 8 7 5 5 25 23 22 (Net WDV) Capital WIP 1156 1019 176 364 840 1753 2843 1439 1221 1603 Investments 23 24 24 25 25 12 12 12 12 12 Deferred Tax Asset - - - - - - - - 934 Working Capital 3979 3344 3871 3344 2112 1085 2181 1190 1889 306 Total 8593 8103 8639 8025 7054 6970 8919 8554 10099 9890 FINANCIAL INDICATORS 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Debt Equity Ratio 1.12 0.97 2.91 3.25 3.26 1.05 1.02 0.69 1.59 4.60 (as per Companies Act) Earnings per share (`) 34.35 4.15 (118.65) (20.40) (2.62) 49.82 69.15 61.31 (14.33) (139.52) Profit After Tax to Average 14.15 1.64 (60.72) (16.21) (2.31) 36.94 36.29 25.46 (5.95) (92.30) Networth (%) Dividend (%) 120 20 - - - 40 210 185 - - Dividend Payout (%) 34.93 48.17 - - - 8.03 30.37 30.18 - - 54TH Annual Report 2019-20 5 WHAT WE EARNED AND WHAT WE SPENT (` in Crore) 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 WHAT WE EARNED Income Turnover 38128 45385 46842 53924 47878 34954 40586 44135 52177 48624 Interest 28 44 12 14 26 16 16 19 29 18 Miscellaneous Receipts 88 41 29 45 29 38 46 73 54 87 Change in Inventories 447 537 205 72 (1321) (209) (105) 607 410 (990) Prior Period Income/ - (9) (1) 13 (4) - - - - - (Expenses) Sub-Total 38691 45999 47087 54068 46608 34799 40543 44834 52670 47739 WHAT WE SPENT Expenditure Raw Materials 31557 39731 42709 47469 39558 23107 24442 29728 39634 36698 Excise Duty 5026 4630 3996 4583 6010 9125 12916 11661 10863 11533 Manufacturing Expenses 217 224 296 306 277 310 315 322 448 447 Employee Benefits 240 253 315 292 339 357 513 582 461 512 Expenses Other Expenses 319 705 625 791 536 515 378 418 688 628 Finance Costs 254 249 469 568 404 352 273 321 420 413 Depreciation and 314 365 375 390 226 274 279 340 453 468 Amortisation Impairment on PPE/CWIP/ - - - - - - 62 4 1 54 Intangible Assets Sub-Total 37927 46157 48785 54399 47350 34040 39178 43376 52968 50753 Profit Before Tax 764 (158) (1698) (331) (742) 759 1365 1458 (298) (3016) Provision for Taxation 252 (220) 69 (27) (703) 17 335 545 (85) (938) Profit After Tax 512 62 (1767) (304) (39) 742 1030 913 (213) (2078) Other Comprehensive - - - - - (2) (6) 6 (2) (40) Income Total Comprehensive 512 62 (1767) (304) (39) 740 1024 919 (215) (2117) Income Dividend incl. Dividend 208 35 - - - 72 376 332 - - Distribution Tax Details of significant changes of 25% or more as compared to the immediately previous financial year in the following financial ratios Ratio 2018-19 2019-20 Change in % Debtors turnover ratio (No. of Days) 2.29 0.93 59% Inventory turnover ratio (No. of Days) 45.13 22.87 49% Interest coverage ratio 0.29 (6.30) (2272%) Debt Equity Ratio 1.59 4.60 (190%) Operating profit margin (%) (0.86) (8.34) (866%) Net Profit Margin (%) (0.52) (5.60) (985%) Return on Net Worth (0.06) (1.74) (2603%) 6 Chennai Petroleum Corporation Limited Chennai Petroleum Corporation Limited (A group company of IndianOil) Regd.