Chairman’s Message 2 105 Board of Directors 4 Statement of Cash Flows 109 ended 31st March, 2019 Management Team 6 Notes to Financial Statements for the year Independent Auditors’ Report on the 153 Notice to the Members 7 13 ConsolidatedComments of Financialthe C&AG Statements 163 PerformanceDirectors’ Report profile 24 164 42 Consolidated Balance Sheet 165 Annexures to Directors’ Report 54 Management Discussion and Analysis Consolidated Statement of Profit & Loss 166 91 Consolidated Statement Cash Flows 170 st March, 2019 Independent Auditors’ Report on Standalone Comments of the C&AG 102 Notes to consolidated financial statements for Financial Statements theHuman year Resourceended 31 Accounting 219 103 220 104 Balance Sheet Social Accounts Statement of Profit & Loss Dear Stakeholder, Over the past 26 years of its eventful journey, your Company has established its position as a model business enterprise in the Oil and Gas industry of the country; creating value for all its stakeholders, while contributing significantly to the socio – economic development of North East of India and the Nation as a whole. I place before you the Annual Report of the Company for the FY 2018-19. The year 2018-19 has been an eventful year with appreciable results, significant developments and forays into new territories. `It was a landmark moment in the history of the Company when the Union Government gave its formal approval in January 2019 for enhancing NRL’s capacity from existing 3 MMTPA to 9 MMTPA at a project cost exceeding 22,000 Crore . This would be the highest ever investment in North East India so far, promising to elevate the socio-economic indices of the region and presenting immense opportunities; apart from easing out the constraints that the Refinery has been facing. The project also includes simultaneous laying of over 2,000 KM of pipeline for transporting imported Crude Oil from Paradeep port to Numaligarh and then to facilitate evacuation of products from Numaligarh to Siliguri. While it is a matter of honour to be associated with this flagship project, we all need to gear up for implementation of this mega project on ground. The road ahead is fraught with unknown challenges which we will have to face and overcome with our collective knowledge, skill, prudence and above all the spirit of team work while maintaining the highest standards of governance. In 2018-19, the Company’s refining business continued to deliver stellar results. For the first time, the Refinery could process 2,900 TMT of Crude Oil, though2 marginally2 lower than the installed capacity primarily due to non- ` availability of indigenous Crude Oil. NRL recorded the highest ever HSD production of 1,933 TMT and highest` Croreever Sales compared Turnover to ` at 18,511 Crore - a growth of 16.25% asst compared to the previous year due to higher salesat ` volume and better price realization. There was however a marginal reduction in net profit at 1,968 2,045 Crore in the previous year. As on 31 March 2019, your Company’s net worth stood 5,551 Crore, signifying strong economic fundamentals. Rightfully so, your Company was recognized as the ‘Fastest Growing Miniratna of the year 2018 (Manufacturing)’ by the Dalal Street Investment Journal. The year 2018-19 saw NRL venturing into new grounds transcending its core business as a down-stream company. The 130 KM Indo-Bangla Friendship Pipeline (IBFPL) for transporting products from our Siliguri Marketing Terminal to Bangladesh is progressing well, consequent to the ground breaking ceremony in September 2018 in the presence of Hon’ble Prime Ministers of India and Bangladesh through video conferencing. The project is being jointly funded by the Government of India and NRL. Works for the first bamboo biomass based 2G Bio Refinery Plant in the country being implemented through a JV, ‘Assam Bio-Refinery Pvt. Ltd’ has attained a definite pace. The JV was formed in June 2018 with major equity stake of 50% by NRL along with Finnish collaborators for which the Foundation stone laying plaque was unveiled ceremonially by Hon’ble Prime Minister of India in February, 2019. The Company also took its first steps in the Upstream business of exploration and production looking for win- win investment opportunities under Open Acreage Licensing Policy (OALP) / Discovered Small Field (DSF) rounds. After due diligence, we are now in the process of acquiring 20% Participatory Interest (PI) in Namrup Block from M/s Oil India Limited for which farm out agreement has already been signed. There has been a proliferation of digital technologies with diverse ramifications in all fields of business including ours. NRL has had a track record of fastest adoption of digital technology from the time that it became the first PSU in the Oil and Gas sector to adopt ERP way back in the year 1998. This year, it has embarked on a digital road map for the future for digital transformation. One specific area where implementation was initiated was end to end hydrocarbon production accounting and reconciliation. Several other State of the art info-technology is being imbibed to upgrade and enhance internal and customer experience. NRL has always considered Human Resource as its greatest asset and the time has come yet again to prove our mettle as we embark on a challenging voyage to meet the goals that we have set for ourselves. Your Company has been maintaining integrity, transparency and accountability in all its spheres of business and will continue to imbibe the best business practices and highest principles of work and ethics in its onward journey. As a good governance practice and as per guidelines on Corporate Governance for Central Public Sector Enterprises issued by Department of Public Enterprises (DPE) in May, 2010 and amendment thereon, the Company has been complying with the stipulations contained therein to the extent applicable. As we grow and progress, so does our responsibility towards the society not just through business excellence but also on the premises of empathy, compassion and regard for the environment around us. NRL is the rising star of the North East. I see a great future for the Company as one of the front ranking global energy companies; a dream that would not be possible without the steadfast support of entire team NRL and its valued stakeholders. I would like to place on record my heartfelt thanks to all our associates, business partners and well-wishers, who have supported us even when it was not quite smooth sailing, sharing our happiness and anxieties alike in this journey. Special thanks to the Ministry of Petroleum and Natural Gas for their expert guidance and hand holding at all times. I assure you that together, we will take NRL to scale the summits of success and accomplishment. With regards, D. Rajkumar Chairman 3 D. Rajkumar Chairman Bankers Auditors Chartered Accountants State Bank of India Axis Bank Union Bank M. C. Bhandari & Co. HDFC Bank Ltd Canara Bank UCO Bank IndusInd Bank ICICI Bank 4, Synagogue Street (Behind Central Bank, Braboume Road) Refinery Unit Registered Office Co-ordinationKolkata – 700001 Office (India) Marketing & BD Office th th Christianbasti Pankagrant 122A, G. S. Road Tolstoy House, 6 Floor NEDFi House, 4 Floor Numaligarh Refinery Complex 15 - 17 Tolstoy Marg G. S. Road, Dispur Golaghat District, Assam Guwahati – 781005 New Delhi – 110001 Guwahati – 781006 Pin – 785699 S. K. Barua B. J. Phukan Shri Indranil Mittra Managing Director [w.e.f. 12-10-2018] Director (Technical) Director (Finance) Ravi Capoor Rajkumar Sharma Mrs. Sneh Lata Kumar Utpal Bora Director Independent Director Independent Director Director Shri R K Kureel Dr. Sylvanus Lamare Dr. Praphullachandra Sharma Director Independent Director Director [w.e.f. 26-03-2019] [w.e.f. 16-07-2019] [up to 13-02-2019] Management(L to R) Mr. B. J. Phukan, Team Director (Technical); Mr. S. K. Barua, Managing Director and Mr. Indranil Mittra, Director (Finance) Shri Subrata Das Shri B. Ekka Sr. CGM (Mktg. & BD) Shri Pallav Kumar Das GM (Project Process & Engg.) Shri Debashish Choudhury Sr. CGM (HR & Legal) GM (Marketing) Shri Nikunja Borthakur Sr. CGM (CA) GM (Process Tech. & Shri Bimlesh Gupta Shri A. P. Chakravorty Sr. CGM (Project) Planning) Shri Gopal Sarma CGM (Operations) Shri Dhiren Handique GM (IHP) Shri H. K. Nath CGM (Maintenance) Shri Pratul Saikia GM (Finance) Shri Samir Kundu Shri H. K. Sarmah Company Secretary Shri Kajal Saikia GM (HRD) Shri Hemanta Neog Shri M. K. Pegu CGM (Project-Pipeline) GM (Electrical Maintenance) Shri G. K. Borah CGM (Project- Refinery) GM (P&U) Shri Nalini Kanta Buragohain GM (Commercial) I/c Shri Monjit Kumar Borah GM(Maintenance Planning) Shri Ghana Shyam Gogoi GM (Commercial) Shri Sobhan Konwar GM(Operation) Shri Prabir Kr. Talukdar GM (HRS) 6 Shri Ghanashyam Hazarika GM(Process Technology) Notice to the Members th Notice is hereby given that the 26 Annual General Meeting of the Members of Numaligarh Refinery Limited will be held at the Registered Office of the Company, 122A, G. S. Road, Christianbasti, Guwahati-781005 on A.Friday, Ordinary the 16th Business: August, 2019 at 3.00 P.M. to transact the following Ordinary and Special Business: 1. To receive, consider and adopt (a) the Audited Financial Statement of the Company for the financial year ended 31st March, 2019; (b) the Audited Consolidated Financial Statement of the Company for the financial year ended 31st March, 2019; and the Reports of the Board of Directors and the Statutory Auditors and the Comments of the Comptroller & Auditor General of India thereon. 2. To confirm the payment of Interim Dividend on Equity Shares and to declare Final Dividend on Equity Shares for the financial year ended 31st March, 2019. 3. To appoint a Director in place of Shri D.