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Bharat Petroleum Corporation Ltd.

BSE: 500547 Sector: Oil & Gas
NSE: BPCL ISIN Code: INE029A01011
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VOLUME 18003
52-Week high 546.15
52-Week low 399.34
P/E 17.90
Mkt Cap.(Rs cr) 110,285
Buy Price 508.40
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Sell Price 0.00
Sell Qty 0.00
OPEN 513.00
CLOSE 512.35
VOLUME 18003
52-Week high 546.15
52-Week low 399.34
P/E 17.90
Mkt Cap.(Rs cr) 110,285
Buy Price 508.40
Buy Qty 9.00
Sell Price 0.00
Sell Qty 0.00

Bharat Petroleum Corporation Ltd. (BPCL) - Director Report

Company director report

The Board of Directors takes pleasure in presenting its Report on the performance ofBharat Petroleum Corporation Limited (BPCL) for the year ended 31st March 2017.

PERFORMANCE OVERVIEW Group Performance

During the year 2016-17 the aggregate Refinery throughput of BPCL's Refineries atMumbai and Kochi along with its Subsidiary Company Numaligarh Refinery Limited (NRL) andconsidering 50% throughput of Joint Venture Company Bharat Oman Refineries Limited was31.24 Million Metric Tonnes (MMT) as compared to 29.82 MMT during 2015-16. The BPCL Groupended the year with market sales of 37.74 MMT as compared to 36.83 MMT during 2015-16.During the year BPCL Group's exported 2.50 MMT of petroleum product as against 1.90 MMTduring 2015-16.

The Financial Year saw the Group achieve a Gross Revenue from Operations of Rs.243747.46 Crores as compared to Rs. 219226.79 Crores recorded in 2015-16. The Profitafter Tax stood at Rs. 8720.94 Crores in 2016-17 as against Rs. 7584.51 Crores in theprevious year. The Group has recorded Earnings per Share of Rs. 66.51 in the current yearas against Rs. 57.84 in 2015-16 after setting off the minority interest.

CONSOLIDATED GROUP RESULTS
2016-17 2015-16
Physical Performance
Crude Throughput (MMT) 31.24 29.82
Market Sales (MMT) 37.74 36.83
Financial Performance Rs. Crores
Gross Revenue from Operations 243747.46 219226.79
Profit before Depreciation Finance Costs and Tax 15560.22 14532.94
Finance Cost 696.36 680.49
Depreciation & amortization expense 2107.64 2071.87
Profit before Tax 12756.22 11780.58
Provision for Taxation – Current 3168.28 34 18.45
Profit after Current Tax 9587.94 8362.13
Provision for Taxation – Deferred (Asset) / Liability 1135.60 613.63
Short / (Excess) provision for Taxation for earlier years (111.24) 10.64
Net Profit (A) 8563.58 7737.86
Share of profit of equity accounted investee (net of income tax) (B) 943.39 351.01
Minority Interest (C) 786.03 504.36
Net Income of the group (A+B-C) 8720.94 7584.51
Other Comprehensive Income of the group 332.33 16.30
Total Comprehensive Income of the group 9053.27 7600.81
Group Earnings per share attributable to BPCL (Rs.) 66.51 57.84

 

COMPANY RESULTS
2016-17 2015-16
Physical Performance
Crude Throughput (MMT) 25.39 24.12
Market Sales (MMT) 37.68 36.53
Rs. Crores
Financial Performance
Gross Revenue from Operations 242047.82 217894.77
Profit before Depreciation Finance Costs and Tax 13429.98 12800.80
Finance Cost 495.87 565.16
Depreciation & amortization expense 1891.32 1844.60
Profit before tax 11042.79 10391.04
Provision for Taxation – Current Tax 2210.00 2684.00
Provision for Taxation – Deferred Tax 904.73 636.02
Short/(Excess) provision for taxation of earlier years (111.24) 14.66
Net Profit for the year (A) 8039.30 7056.36
Other Comprehensive Income (OCI) 132.43 (274.87)
Total Comprehensive Income for the year 8171.73 6781.49
Opening Balance of Retained Earnings (B) 1422.46 2279.55
Income from BPCL Trust for Investment in Shares (C) 526.17 259.71
Amount available for disposal (A+B+C) 9987.93 9595.62
The Directors propose to appropriate this amount as under:
Towards Dividend:
Final Dividend of previous year 1084.63 1626.94
Corporate Dividend Tax on Final Dividend of previous year 169.81 294.27
Interim Dividend 4555.43 1156.93
Corporate Dividend Tax on Interim Dividend 828.23 202.51
For transfer to Debenture Redemption Reserve 224.58 243.75
For Re-measurements of Defined Benefit Plans (Net of tax) 50.69 93.18
For transfer to General Reserve - 4555.58
Closing Balance of Retained Earnings 3074.56 1422.46
Summarized Cash Flow Statement :
Cash Flows:
Inflow/(Outflow) from Operating Activities 7881.93 10179.21
Inflow/(Outflow) from Investing Activities (10114.68) (7975.48)
Inflow/(Outflow) from Financing Activities 566.56 (1839.92)
Net increase/(decrease) in cash & cash equivalents (1666.19) 363.81

Company Performance

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

Indian Accounting Standards

Ministry of Corporate Affairs (MCA) vide their notification dated 16th February 2015notified the Companies (Indian Accounting Standards) Rules 2015 applicable for accountingperiods beginning on or after 1st April 2016 for all listed companies having net-worth ofRs. 500 Crores or more. Accordingly for BPCL Ind AS is applicable from financial year2016-17. The transition was carried out from Generally Accepted Accounting Principles inIndia (Indian GAAP) as prescribed under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 which was the "Previous GAAP".

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

In preparing the Ind AS Balance Sheet as at 1st April 2015 and in presenting thecomparative information for the year ended 31st March 2016 the Corporation has adjustedamounts previously reported in the financial statements prepared in accordance withprevious GAAP.

BPCL's Gross Revenue from operations for 2016-17 stood at Rs. 242047.82 Croresreflecting an increase of 11.08% over the previous year's revenues of Rs. 217894.77Crores. The profit before tax for the year was Rs. 11042.79 Crores as compared to Rs.10391.04 Crores in 2015-16. After providing for Tax (including deferred tax) of Rs.3003.49 Crores as against Rs. 3334.68 Crores during the last year the Profit after Taxfor the year stood at Rs. 8039.30 Crores as against Rs. 7056.36 Crores in 2015-16.

The earnings per share amounted to Rs. 61.31 in 2016-17 as compared to Rs. 53.81 in2015-16. The Earning per share is after adjustment of Bonus Share issued during 2016-17and BPCL Trust for Investment in Shares. Internal Generation during the year was lower atRs. 5716.10 Crores as against Rs. 7113.55 Crores in 2015-16 due to higher dividenddeclared by the Corporation during 2016-17.

As per Regulation 43A of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 the top five hundred listedentities shall formulate a dividend distribution policy. Accordingly DividendDistribution policy has been adopted to set out the parameters and circumstances that willbe taken into account by the Board in determining the distribution of Dividend to itsshareholders and/or retaining the profit into the business. The policy is enclosed asAnnexure J to the Board Report and is available on the BPCLs's website athttps://www.bharatpetroleum.com/ images/files/DDP%20Final%20File.pdf BPCL's contributionto the exchequer by way of Taxes and Duties during 2016-17 amounted to Rs. 84758.84Crores as against Rs. 67719.17 Crores in the previous Financial Year. As on 31st March2017 BPCL's Total equity stands at Rs. 29668.38 Crores as against the previous year'sfigure of Rs. 27332.96 Crores.

Dividend

The Board of Directors has recommended a Final Dividend of 10% (Rs. 1 per share) forthe year on the paid-up share capital of Rs. 1446.17 Crores which amounts to Rs. 174.06Crores inclusive of Rs. 29.44 Crores for Dividend Distribution Tax. In addition twointerim dividends of 195% (Rs. 19.50 per share) and 120% (Rs. 12 per share) totaling toRs. 4555.43 Crores exclusive of Rs. 828.23 Crores for Dividend Distribution Tax wasdeclared and distributed during the year.

Bonus Shares

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

Borrowings

Borrowings from banks increased from Rs. 6179.08 Crores as at March 31 2016 to Rs.11737.95 Crores at the close of the current financial year. Loans from Oil IndustryDevelopment Board stand at Rs. 1795.13 Crores as at 31st March 2017 as compared to Rs.1725.24 Crores at the end of the previous year. Debentures worth Rs. 550 Crores wereissued during the year 2016-17. 4.625% US Dollar International bonds issued during 2012-13of US$ 500 Million (equivalent to Rs. 3222.60 Crores) remained outstanding as on 31stMarch 2017. 3% Swiss Franc International Bonds issued during 2013-14 of CHF 200 Million(equivalent to Rs. 1292.45 Crores) remained outstanding as on 31st March 2017. 4% USDollar International bonds issued during 2015-16 of US$ 500 Million (equivalent to Rs.3211.28 Crores) remained outstanding as on 31st March 2017.

Deposits from Public

The Corporation has not accepted any deposit from the public during the year. Theamount of deposits matured but unclaimed at the end of the year were Nil. The unclaimedamount is being transferred to the Investor Education and Protection Fund after therespective due dates.

Capital Expenditure

The Gross Capital Expenditure during the year 2016-17 amounted to Rs. 9476 Crores ascompared to Rs. 10311 Crores during the year 2015-16 and including Investment in JointVenture Companies and Exploration during the year 2016-17 was Rs. 16949 Crores (Budgetestimate of Rs. 13097 Crores) as compared to Rs. 11978 Crores during the year 2015-16.

C&AG Audit

The Comptroller and Auditor General of India's (C&AG) comment upon or supplement tothe Statutory Auditors' Report on the Accounts for the year ended 31st March 2017 isannexed as Annexure E.

REFINERIES MUMBAI REFINERY

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

The Gross Refining Margin (GRM) for the year stood at US$ 5.36 per barrel as comparedto US$ 6.37 per barrel realized in 2015-16. The overall gross margin for the refinery in2016-17 amounted to Rs. 3671 Crores as compared to Rs. 4198 Crores in 2015-16.

KOCHI REFINERY

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

The Gross Refining Margin (GRM) for the year stood at US$ 5.16 per barrel as comparedto US$ 6.87 per barrel realized in 2015-16. The overall gross margin for the refinery in2016-17 is Rs. 3061 Crores as against the previous financial year figure of Rs. 3610Crores.

PIPELINES:

The BPCL Group owns a robust network of 2241 km of Product pipelines with designcapacity of 17.84 MMT. Pipelines have achieved a throughput of 14.06 MMT in the year2016-17 which is the highest so far. Pipelines have transported about 5072 MMTKM ofpetroleum products to BPCL's marketing locations spread across Northern Central Western& Southern parts of the country which accounts for approximately 40% of the totalprimary transportation.

MARKETING

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

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

MAJOR PROJECTS

Integrated Refinery Expansion Project (IREP) at Kochi Refinery

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

The approved cost of the project is Rs. 16504 Crores and cumulative expenditure upto31st March 2017 on the project is Rs. 14729.61 Crores.

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

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

The project involves conversion of the Catalytic Reformer Unit (CRU) to IsomerizationUnit (ISOM) along with associated facilities. This would enable Mumbai Refinery to produce100% BS-IV MS along with world class quality Hexane.

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

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

Diesel Hydro Treatment Unit (DHT) at Mumbai Refinery

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

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

Heat Traced Pipeline at Mumbai Refinery

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

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

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

Gasoline Hydro Treatment Unit (GTU) at Mumbai Refinery

The project envisages installation of a Gasoline Hydro Treatment Unit (GTU) to produce100% BS VI MS as per the Auto Fuel Vision and Policy 2025. The project would enable therefinery to supply 100% BS VI grade MS from April 2020.

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

The project is scheduled for mechanical completion by December 2019.

Propylene Derivative Petrochemical Project (PDPP) at Kochi Refinery

The project envisages production of niche petrochemicals utilizing Polymer GradePropylene produced from the Petro FCCU being set up as part of IREP. The PDPP projectenvisages production of Acrylic Acid Oxo Alcohols and Acrylates utilizing approximately250000 MT per annum of Polymer Grade Propylene. Currently these petrochemicals areimported in the country hence this project would promote ‘Make In India.' The costof the project is Rs. 4588 Crores and the cumulative expenditure on the project is Rs.734.78 Crores as on 31st March 2017.

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

Heat Traced Pipeline (HTPL) at Kochi Refinery

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

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

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

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

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

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

The project is scheduled for mechanical completion by October 2019.

Ennore Coastal Terminal Project

BPCL has acquired 100 acres of land in Ponneri Taluk Thiruvallur District from theSalt Commissionerate Ministry of Commerce Government of India for construction of aStorage Terminal. The project scope envisages construction of 124439 KL tankage along withother amenities 8 bay TLF gantry pumps and pipelines product receipt line from Ennorejetty and allied facilities. The approved cost of the project is Rs. 393 Crores and theproject has achieved an overall physical progress of 37.08%. The cumulative expenditure onthe project is Rs. 147.69 Crores as on 31.03.2017 and the expected commissioning is byApril2018.

Palakkad LPG Terminal Project

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

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

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

LPG Import Facility at Haldia

The growth of demand for LPG in the Eastern part of UP in Northern Region andrequirement of a reliable product source for Eastern Region necessitated the need fordedicated LPG storage facility in the eastern coast especially near Kolkata. Therefore ithas been planned to have a dedicated import terminal at Haldia with a capacity of 2 X15TMT to store Propane Butane and LPG for an average throughput of 1.0 MMTPA.

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

Mumbai Manmad Pipeline Re-routing

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

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

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

RESEARCH & DEVELOPMENT

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

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

NON-CONVENTIONAL ENERGY INITIATIVES

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

Use of green energy which is considered to be clean energy is also economicallybeneficial for the organization. This in turn is positively contributing to the country'starget of achieving 175 gigawatts of renewable energy by 2022. To make this endeavour areality BPCL is focused on putting up solar plants at their various locations throughoutthe country.

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

START UP INITIATIVE

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

BPCL has allocated Rs. 25 Crores for promoting a startup culture within and outside theCompany. This will be given as grants to deserving applicants. A process has been put inplace whereby a six member committee consisting of three internal and three externalmembers will decide on the recipients of the grant. A website has been created to receiveapplications from the general public and a Pan India advertisement was released in May2017.

INDUSTRIAL RELATIONS

The overall Industrial Relations climate remained harmonious and cordial throughout theyear. BPCL continued with its thrust on resolving issues through continuous dialogue andmaintaining collaborative approach with Unions workmen and other stake holders. Regularmeetings were held with the representatives of Unions to deliberate on various challengesand opportunities concerning the organisation as well as workmen. The Unions and workmendemonstrated their commitment to achieve organizational objectives. During the year2016-17 there have been certain communications received from the Ministry of Petroleum

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

CORPORATE SOCIAL RESPONSIBILITY

BPCL is a vital player in the energy sector and is contributing significantly toIndia's progress. In alignment with the vision of the Company its CSR initiatives striveto Energise Lives of the communities. Over the years BPCL has contributed towards the goalof achieving Sustainable Development and made significant progress in the thrust areas ofEducation Water Conservation Skill Development Health & Hygiene and CommunityDevelopment. Seeking to herald an inclusive business paradigm CSR initiatives areundertaken based on social environmental and economic considerations. CSR being ingrainedinto the business strategy various initiatives have been pioneered to address someimportant developmental challenges. Today through institutionalized and project-basedapproach BPCL continues to take up new projects while exiting from those that have beensuccessfully completed.

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

The Science Education Project for students of Government schools in Solur Bangalore(Karnataka) focuses on experiential learning models based on science concepts. It reachesthe students through a mobile science lab and science centre. This project has madehands-on science education available to poor rural children and teachers. This year over8546 students from 84 schools have enjoyed hands-on learning of science through thisproject while also being groomed as young science leader-thinkers.

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

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

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

Industry is together working in the direction of setting up Mega Skill DevelopmentInstitutes-SDIs and subsequent SDIs in the catchment areas of other Oil PSUs. BPCL hastaken the lead role to set up SDI Kochi and has supported setting up the model SDI inOdisha and SDI-Visakhapatnam as well. Further BPCL has contributed towards the HydrocarbonSector Skill Council for assessing skill needs and gaps establishing competency standardsfor each sector like upstream downstream and mid-stream and imparting the requisiteskills based on competency standards. Several placement linked skilling projects have beensuccessfully completed across the country for youth women and persons with disabilities.Water scarcity is a disturbing phenomenon in the country for decades and this affects alarge population in India. Recognizing the suffering of people living in water scarceareas of rural and urban India BPCL has undertaken Project ‘BOOND' which is a waterconservation initiative through rain water harvesting. The project has covered 36 villagesfrom Tamil Nadu Karnataka Maharashtra and Rajasthan during the Financial year 2016-17.Effective community participation and inclusive approach of the project has enabledsuccessful formation of Village Water Committees that have taken over the governance andmaintenance of the water structures constructed. In addition to this project BOOND alsosupports sustainable employment through new and improved agricultural practices like croprotation mulching newer crops innovative methods of irrigation and horticulture. Since2010 BPCL has collectively reached out to 196 villages through project BOOND. Theseinitiatives aim at increasing availability of water for agriculture livestock and groundwater recharge decrease in migration improving the quality of life of the villagers anda positive effect on the environment in addition to flood moderation.

BPCL is proactively working to address issues of health and sanitation by providingaccess to basic health care services both preventive and curative to the underprivilegedand building the capacity of local health facilitators and community members. Projectsrelated to strengthening healthcare infrastructure and services and building capacities ofhealthcare professionals supporting health camps through mobile medical units for thegeneral community have been directed towards making basic healthcare services accessibleto the underprivileged. Furthermore various nutritional support projects in Kerala foranganwadi and school children have been undertaken. Through various health initiativesduring the year BPCL has reached out to 144205 beneficiaries. BPCL has participated inSwachh Bharat Abhiyan through various initiatives. The Company has undertaken maintenanceof toilets in 4 states – Andhra Pradesh Chhattisgarh Telangana and West Bengalwhich were constructed as part of ‘Swachh Vidyalaya Abhiyan'. Additionally 20toilets have been constructed in schools and a college at Dharwad Karnataka. BPCL hasalso undertaken a project for cleanliness around Madurai Meenakshi Temple aiming at makingit a ‘Swachh Iconic Place'.

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

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

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

PROMOTION OF SPORTS

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

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

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

BPCL's renowned Badminton players Saina Nehwal and P.V. Sindhu were conferred with thePadma Bhushan Award and Rajiv Gandhi Khel Ratna Award respectively. The Company's TableTennis player Soumyajit Ghosh was conferred with the Arjuna Award by the Hon'blePresident of India.

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

Four of BPCL's Hockey players namely Devinder Walmiki Harmanpreet Singh BirendraLakra and Tushar Khandker (Assistant Coach) were part of the Indian team which won theGold Medal at the Asian Champions Trophy held at Malaysia in October 2016. Harjeet SinghVarun Kumar Harmanpreet Singh and Vikas Dahiya were part of the Indian Hockey team whichwon the Junior Hockey World Cup. BPCL's employee and ex- Olympian Romeo James was the goalkeeping coach of the victorious Junior Indian Hockey team. Devinder Walmiki and LalitUpadhyay were the members of the Kalinga Warriors team which won the prestigious HockeyIndia League title. S.V. Sunil was named Player of the Year 2016 whereas Harmanpreet Singhwas named the Emerging Player of the Year by Asian Hockey Federation.

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

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

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

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

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

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

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

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

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

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

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

IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

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

For the first time in BPCL's history the Chairmanship of Town Official LanguageImplementation Committee for Manmad was conferred upon BPCL by the Department of OfficialLanguage of the Ministry of Home Affairs. The First Sub-Committee of the ParliamentaryCommittees on Official Language held inspection visits at seven BPCL establishments andthe Joint Director of Ministry of Petroleum & Natural Gas held inspection visits ateight BPCL establishments.

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

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

Hindi Co-ordinators' conferences were organized by all the Regions and Refineries forpromotion of Hindi language. Representatives from the Ministry of Petroleum & NaturalGas also participated in these conferences. "World Hindi Day" was organized on10th January 2017 across all the Regions and Refineries. On this occasion variouscontests were organized for encouraging progressive usage of Hindi language among theemployees.

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

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

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

CITIZEN CHARTER AND PUBLIC GRIEVANCE REDRESSAL

BPCL is sensitive to the service levels offered to its customers across everytouch-point in constant pursuit of excellence and its commitment to enhance customerexperience. As part of this BPCL has published the Citizen Charter on the Corporatewebsite www.bharatpetroleum.in. The charter is available both in Hindi and Englishversions and provides details of a range of products and services offered to thecustomers. The charter also covers an overview of the marketing activities of BPCL policyguidelines and processes on marketing of petroleum products including the mandate of the

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

RTI Act came into existence in the year 2005 empowering ordinary citizens of thecountry to seek information from any public authority. BPCL has implemented the Act inletter and spirit with belief in the philosophy of transparency being the essence of goodgovernance. In the journey of over 12 years of the RTI Act BPCL has setup a formidablestructure in place with 88 CPIOs (Central Public Information Officers) and 12 AppellateAuthorities across the organization in major business units/entities such as Retail LPGAviation Human Resources International Trade Mumbai and Kochi Refineries to ensure thatRTI applications are responded to effectively and in a timely manner. BPCL has handled29672 Right to Information Act (RTI) applications 4387 appeals and 732 second appeals toCIC during the year 2016-17. BPCL did not have any instance of penalty or strictures inthese 12 years. Initially BPCL had an in-house RTI web package to monitor all RTIapplications and appeals and CIC cases. Effective 1st August 2016 BPCL has moved to RTIOnline in compliance of the instructions from DoPT and MoP&NG smoothly andsuccessfully. Several Training Programmes have been conducted to train CPIOs and AAs alongwith their staff to handle RTI online. As a knowledge management initiative RTI relatedarticles are published in the in-house newsletter brought out periodically which coversvarious aspects of the RTI Act and learnings from key CIC decisions and Case Studies withthe objective of enhancing knowledge and improvising on deliverables. During the periodending 31st March 2017 BPCL has disposed of 3464 RTI Applications within the stipulatedtimelines. On its Corporate Website a separate section has been provided under Section4(1) (b) of the RTI Act.

The Central Public Grievance Redressal and Monitoring System (CPGRAMS -commonly knownas PG Portal) - an internet based Grievance Redressal Mechanism of the Government of India(under DARPG (Department of Administrative Reforms & Public Grievances) helps BPCL inspeedy redressal of public grievances. BPCL has a well-established grievance redressalframework in each Strategic Business Unit for timely and qualitative redressal of publicgrievances. The grievances received on this portal are monitored from the CorporateOffice. During 2016-17 3762 grievances were received against which 3621 such grievanceswere redressed and closed. BPCL also reaches out to its customers / citizens at largethrough its established Centralized Customer Care System portal (CCS) – Smartline. Itis an interactive platform to customers with web based access / dedicated toll freenumbers which enables customers to connect with BPCL and log any interaction -complaints suggestions and feedback. The customers / citizens are sent an acknowledgement/ alert after every interaction.The CCS is designed to track every interaction and anin-built 3-tier escalation matrix has been provided in the system.

MICRO & SMALL ENTERPRISES

In line with "Public Procurement Policy for MSEs Order 2012" BPCL has beenprocuring more than 20% of its Goods and Services through MSEs as against a target of20% annually. BPCL has also been fully abiding by the other mandates of the Policy.

All the high value tenders at BPCL are through press tender route. The GeneralConditions of Contract (GCC) and General Purchase Conditions (GPC) of press tenders havethe purchase preference clause for MSEs. As per existing Purchase Preference Policy ofGovernment of India in any tender participating MSEs who are within price band ofL1+15% will get a portion of order provided they match L1 price. This allocation to MSEsis atleast 20%. Additionally 20% of this 20% portion i.e. 4% of the total tender quantityis reserved for SC/ST entrepreneurs in MSE category. The Public Procurement Policy Order2012 also states that in the event of failure of such MSEs owned by SC/ST to participatein the tender process or meet tender requirement and L1 price 4% sub target shall be metfrom other MSEs.

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

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

For the year 2016-17 the total procurement value for BPCL for Goods and Servicesexcluding Works Contracts where MSEs could have participated was Rs. 4919.61 Crores andthe actual procurement value from MSEs was Rs. 1613.88 Crores i.e. an achievement of32.80% as against the target of 20%.

The procurement for Goods and Services excluding Works Contracts from MSE-SC/ST vendorsduring the year 2016-17 was Rs. 91.20 Crores. i.e. an achievement of 1.85% as against atarget of 4%. There was a shortfall against the target since MSE-SC/ST vendors did notbid. BPCL had undertaken special initiatives to enhance participation by MSE-SC/STvendors such as inclusion of MSE Purchase Preference Clause in GCC and GPC as mentionedearlier. BPCL had participated in the National Vendor Development Programme organized byDalit Indian Chamber of Commerce and Industry (DICCI) and Ministry of Petroleum andNatural Gas (MOP&NG) at Vigyan Bhavan New Delhi in March 2017 and made presentationto around 400 SC/ST Vendors for promoting their participation. This was over and above thespecial drive undertaken by Mumbai Refinery wherein 21 SC/ ST vendors were registered asmentioned earlier. Also the one month long "Entrepreneurship DevelopmentProgramme" was a step towards encouraging budding SC/ST entrepreneurs to develop intheir respective fields.

VIGILANCE

Vigilance in BPCL is proactive as well as preventive in contributing to the overallgood governance in the organization. The department constantly endeavours to promoteimprovement in systems processes and practices through an approach of proactive andparticipatory vigilance leading to "Vigilance for Corporate Excellence". Itbelieves that with best practices adequate controls accountability and transparencydecisions taken will be efficient effective and consistent ultimately leading toCorporate Excellence. This also helps sensitizing employees to this concept so that theirthoughts and actions are aligned towards integrity and transparency.

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

As a part of preventive vigilance awareness sessions were conducted for our employeesworking at operating locations and regional offices by Vigilance officers during theirvisits to enhance knowledge and awareness on the operational aspects of various guidelinesand standard operating procedures in vogue. This was done with a premise to promote cleanbusiness transactions professionalism productivity promptness and ethical practices.

Corporate Vigilance also carried out thorough investigations into the Complaints andSource Information. Complaints including those received online were investigated bothdirectly by Team Vigilance and through Businesses / Entities within the stipulated timeframe.

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

The Vigilance portal creates awareness on good governance sharing knowledge on ethicalpractices and proactive vigilance and connecting with all the employees. This website hasuseful links of Central Vigilance Commission Department of Personnel & TrainingGovernment of India etc.

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

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

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

Limited Numaligarh Refinery Limited Petronet CCK Limited Vigilance Awareness Weekwas launched with administering of pledge by Chief Guest in the presence of Senior BPCLOfficials.

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

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

The Vigilance Department through its endeavours in the proactive vigilance arenanurtures ethical values in school children through focused programs. Such interactionsreinforces the attitude of righteousness in the young impressionable minds which certainlyhas an implication for society at large. The school children form an Integrity Club andare called Young Champions of Ethics (YCEs). By inculcating values students are slowlymade aware of their immense power to make the right choices and their ability to use thepower to bring about changes in the society at large. Integrity Clubs are operational invarious schools in Kochi Mumbai Chennai and Kolkata. Vigilance recognizes the importanceof a moral value system in education and therefore through its interactive initiative"Choti Choti Batein" for the school children it attempts to lead the young mindstowards appreciating a virtuous existence. Ten schools in Mumbai Sholapur Chennai andKolkata and touching around 1100 students from various strata of the society have beencovered. The 7th edition of the Vigilance Plus magazine was released and was received verywell by all the stakeholders. This magazine carries a snapshot of various activitiescarried out during the VAW 2016 and other events conducted by Vigilance Dept. The articlesin the magazine were contributed by the staff members and school students narrating theirexperiences to combat corruption in day-to-day life.

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

SUBSIDIARY JOINT VENTURES AND ASSOCIATE COMPANIES

The Group consists of 5 Indian subsidiaries and 5 foreign subsidiaries as on March 312017. Further the Company has 22 Joint Venture Companies and Associate

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

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

A separate statement containing the salient features of the financial statement ofSubsidiaries/Associates/ Joint Venture Companies in Form AOC – 1 pursuant toprovisions of Section 129 (3) of the Act is attached along with the financial statement.

The Corporation has placed its financial statements including Consolidated FinancialStatements and all other documents required to be attached thereto on its websitewww.bharatpetroleum.in as per Section 136 (1) of the Act. Further the Company has alsoplaced separate Annual Reports / audited accounts in respect of each of its Subsidiariesin its above website. A copy of the said documents will be available for inspection andprovided to any shareholder of the Company who asks for it. The policy for determiningmaterial Subsidiaries is posted on the Company's website at the link:http://www.bharatpetroleum.co.in/General/Policyon MaterialSubsidiaries.aspxRs.id=4

SUBSIDIARY COMPANIES

NUMALIGARH REFINERY LIMITED (NRL)

NRL was incorporated in 1993 with an authorized Share capital of Rs. 1000 Crores. Itis a Category I Mini Ratna company and has a 3 MMTPA refinery at Numaligarh in Assam.Besides the refinery NRL has two marketing terminals one at Numaligarh & other atSiliguri for evacuation of product. NRL also has a 10 TMTPA LPG Bottling Plant atNumaligarh. As on 31st March 2017 the paid up capital of NRL was Rs. 735.63 Crores ofwhich BPCL holds 61.65%.

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

NRL Revenue from Operations was Rs. 13946.92 Crores for the financial year ending 31stMarch 2017 as compared to Rs. 11925.44 Crores in the previous year. The company'sconsolidated profit after tax for the year stood at Rs. 2049.83 Crores as against profitof Rs. 1182.27 Crores in the previous year. The earnings per share (EPS) for the year2016-17 was Rs. 27.86 as compared to Rs. 16.07 in 2015-16. An interim dividend of Rs. 10per share of Rs. 10 each has been paid and the Board of Directors of NRL have proposed adividend of Rs. 8.60 as final dividend for the current financial year as compared to Rs. 7per share in the previous year. NRL had a net worth of Rs. 5180.64 Crores as at 31stMarch 2017.

BHARAT PETRORESOURCES LIMITED (BPRL)

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

As on 31st March 2017 BPRL has an authorized share capital of Rs. 3000 Crores andpaid up share capital of Rs. 2920 Crores which is entirely held by Bharat PetroleumCorporation Limited (BPCL) the holding company. BPRL has recorded consolidated income ofRs. 50.92 Crores and a consolidated loss of Rs. 500.03 Crores for the financial yearending 31st March 2017. The consolidated loss was mainly due to interest cost on loanstaken for investments in Russian assets and due to fair valuation of financial assets.

BPRL has participating interest (PI) in twenty two blocks of which twelve are locatedin India and ten overseas along with equity stake in two Russian entities holding licenceto four producing blocks in Russia. Seven of the twelve blocks in India were acquiredunder different rounds of New Exploration Licensing Policy (NELP) and five blocks wereawarded under the recently concluded discovered small fields bid round 2016. Of theoverseas blocks six are in Brazil and one each in Mozambique Indonesia Australia andTimor Leste. BPRL and its consortia have a total of 25 discoveries in respect of Blocksheld in five countries i.e. Brazil Mozambique Indonesia Australia and in India. Most ofthe blocks of BPRL are in advanced stages of exploration appraisal pre-development andproduction. The total acreage held by BPRL and its subsidiaries is around 23878 sqkm ofwhich approx 76% is offshore.

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

PETRONET CCK LIMITED (PCCKL)

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

The pumping volume during the year 2016-17 was 2.78 MMT as against 2.72 MMT in theprevious year. PCCKL registered a turnover of Rs. 109.78 Crores and net profit of Rs.58.41 Crores for the financial year ending 31st March2017 as compared to a turnover ofRs. 107.78 Crores and net profit of Rs. 59.62 Crores in the previous year. The EPS for theyear stood at Rs. 5.84 as against Rs. 5.96 in 2015-16. During the year 2016-17 PCCKL haspaid dividend of Rs. 12.00 per share.

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

BPCL-KIAL FUEL FARM PRIVATE LIMITED (BKFFPL)

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

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

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

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

During the year Bina refinery recorded a crude throughput of 6.33 MMT and an averagecapacity utilization of 106%. Bina Refinery's GRM for the year 2016-17 stood at US$ 11.80per barrel with an overall Gross Margin of Rs. 3624 Crores.

During the year 2016-17 BORL has achieved sales of 5.53 MMT as against 6.13 MMT in theprevious year. The Company has reported Revenue from Operations of Rs. 27059.03 Crores inthe financial year ended as on 31st March 2017 as compared to Rs. 26028.32 Croresrecorded in previous financial year. The EPS for the year stood at Rs. 3.49 as against Rs.1.67 in 2015-16. The net profit for the year 2016-17 stood at Rs. 808.13 Crores ascompared to Rs. 375.47 Crores in the previous year.

PETRONET LNG LIMITED (PLL)

PLL was formed in April 1998 for importing LNG and setting up LNG terminal withfacilities like jetty storage regasification etc. to supply natural gas to variousindustries in the country. The company has an authorised capital of Rs. 1200 Crores andpaid up capital of Rs. 750 Crores. PLL was promoted by four public sector companies' viz.BPCL Indian Oil Corporation (IOC) Oil and Natural Gas Limited (ONGC) and Gas Authorityof India Limited (GAIL). Each of the promoters holds 12.5% of the equity capital of PLL.PLL is a listed company with public holding 34.80% of the paid up capital of the company.BPCL's equity investment in PLL currently stands at Rs. 98.75 Crores. As at 31st March2017 PLL had net worth of Rs. 8093.89 Crores.

PLL recorded consolidated Revenue from Operations of Rs. 24616.03 Crores in thefinancial year ended as on 31st March 2017 as compared to Rs. 27133.43 Crores recorded in2015-16. The net profit for the year stood at Rs. 1723.13 Crores as compared to Rs. 927.85Crores in the previous year. The EPS for the year 2016-17 amounted to Rs. 22.98 ascompared to Rs. 12.37 in 2015-16. PLL has declared the dividend of Rs. 5 per share for thefinancial year 2016-17 as against a dividend of Rs. 2.50 per share during earlier year.PLL has declared issue of bonus shares in the ratio 1:1 during the year 2016-17.

INDRAPRASTHA GAS LIMITED (IGL)

IGL a Joint Venture Company with GAIL as the other co-promoter was set up in December1998 with an authorised capital of Rs. 220 Crores for implementing the project for supplyof Compressed Natural Gas (CNG) to the automobile sector and Piped Natural Gas (PNG) tohouseholds in Delhi. The paid up Share Capital of the Company is Rs. 140 Crores. BPCLinvested Rs. 31.50 Crores in IGL for 22.5% stake in its equity. IGL is a listed companywith public holding of 55% of the paid up share capital of the company. As on 31.03.2017IGL has 421 CNG stations in Delhi and NCR. IGL has more than 7.4 lakhs domestic PNGcustomers in Delhi and NCR. The Company is also extending its business in geographicalarea of Rewari in Haryana. IGL holds 50% of equity in M/s Central UP Gas Limited Kanpur& M/s. Maharashtra Natural Gas Limited Pune Joint Venture Companies promoted by BPCLand GAIL.

IGL has registered Consolidated Revenue from Operations of Rs. 4222.51 Crores and aprofit after tax of Rs. 606.34 Crores for the financial year ending 31st March 2017 ascompared to a turnover of Rs. 4064.21Crores and a profit after tax of Rs. 457.88 Croresin the previous year.The consolidated EPS for the year stood at Rs. 43.31 as against Rs.32.71 in 2015-16. IGL has paid an interim dividend of Rs. 3.50 during 2016-17 and proposedto pay a final dividend of Rs. 5 per share against Rs. 6 paid in the previous year. IGL'snet worth was Rs. 2926.56 Crores as at 31st March 2017.

SABARMATI GAS LIMITED (SGL)

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

As at 31.3.2017 BPCL has a stake of 49.94% in the equity capital of SGL. SGL has set up56 CNG stations. SGL has achieved Revenue from Operations of Rs. 687.49 Crores and a netprofit of Rs. 42.56 Crores for the financial year ending 31st March 2017 as against Rs.746.90 Crores and Rs. 0.63 Crores respectively for the previous year. The EPS for the yearstood at Rs. 21.27 as against Rs. 0.31 in 2015-16. The company has proposed a dividend ofRs. 2/- per share on equity shares for the financial year ending 31st March 2017.

CENTRAL UP GAS LIMITED (CUGL)

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

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

MAHARASHTRA NATURAL GAS LIMITED (MNGL)

MNGL was setup in January 2006 as a joint venture company with GAIL for implementingthe project for supply of natural gas to the household industrial/ commercial andautomobile sectors in Pune and its nearby areas. The company was incorporated with anauthorised share capital of Rs. 100 Crores. The paid up capital of the Company is Rs. 100Crores. BPCL and GAIL have invested Rs. 22.50 Crores each in MNGL's equity capital. MIDCas a nominee of Maharashtra Govt. has taken 5% equity in the month of June 2015. Balance50% is held by IGL our joint venture company. The company has set up 42 CNG stations sofar.

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

HARIDWAR NATURAL GAS PRIVATE LIMITED (HNGPL)

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

GOA NATURAL GAS PRIVATE LIMITED (GNGPL)

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

BHARAT STARS SERVICES PRIVATE LIMITED (BSSPL)

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

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

BSSPL is presently providing Into Plane (ITP) Services at three open access airportsviz. Bengaluru Mumbai Airport & Delhi T3 Airport. It also has taken over the completeoperatorship of 2 BPCL AFS at Jaipur and Durgapur. In addition BSSPL also provides ITPServices to BPCL at Calicut ChennaiVizag and Delhi T1 Airport. BSSPL has achieved aturnover of Rs. 35.53 Crores and profit of Rs. 5.83 Crores for the financial year ending31st March 2017 as against Rs. 29.53 Crores and profit of Rs. 4.32 Crores respectivelyfor the previous year. The EPS for the year stood at Rs. 2.90 as against Rs. 2.18 in2015-16. The Board has recommended a dividend of Rs. 0.50 per equity share for thefinancial year ending 31st March 2017 as against Rs. 0.25 per equity share last year.

DELHI AVIATION FUEL FACILITY PRIVATE LIMITED (DAFFPL)

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

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

MUMBAI AVIATION FUEL FARM FACILITY PRIVATE LIMITED (MAFFFPL)

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

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

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

KANNUR INTERNATIONAL AIRPORT LIMITED (KIAL)

The Government of Kerala has promoted Kannur international Airport (KIAL) as a publiclimited company to establish and operate airports and allied infrastructure facilities atKannur and/or other parts of India. KIAL would initially set up an Airport at Kannur inthe state of Kerala at an estimated project cost of Rs. 1892 Crores of which Rs. 1000Crores will be financed through equity and the balance sum of Rs. 892 Crores will befinanced by way of borrowings. The paid up share capital of the Company as at 31.3.17 isRs. 987 Crores.

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

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

MATRIX BHARAT PTE LIMITED (MXB)

MXB is a Joint Venture Company incorporated in Singapore on 20th May 2008 for carryingout the bunkering business and supply of marine lubricants in the Singapore market as wellas international bunkering including expanding into Asian and Middle East markets. Thecompany has been promoted by BPCL and Matrix Marine Fuels L.P. USA an affiliate of theMabanaft group of companies Hamburg Germany. The authorised capital of the company isUS$ 4 million. The Company has subscribed 20 lakh shares for an equivalent sum of Rs. 8.41Crores. Both the partners have contributed equally to the share capital. Matrix MarineFuels L. P. USA has subsequently transferred their share and interest in the joint venturein favour of Matrix Marine Fuels Pte Limited Singapore another affiliate of Mabanaftgroup. The name of company has been changed to Matrix Bharat Pte Ltd. MXB has achievedrevenue of US$ 263.31million and earned a profit of US$ 2.71 million for year ending31.12.2016 as against US$ 221.82 million and earned a profit of US$ 1.47 million. MXB haddeclared a dividend of US$ 0.20 per share for the year 2016 as against US$ 0.30 per sharefor the previous year.

KOCHI SALEM PIPELINE PRIVATE LIMITED (KSPPL)

BPCL has signed a Joint Venture Agreement with IOC for implementation ofKochi-Coimbatore-Salem LPG pipelines Project and formed a Joint Venture Company viz KSPPLin January2015. on 50:50 basis. Presently BPCL has paid an amount of Rs. 55 Crores asadvance against equity to JV Company

GSPL INDIA TRANSCO LIMITED (GITL)

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

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

GSPL INDIA GASNET LIMITED (GIGL)

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

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

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

FINO PAYTECH LIMITED (FINO)

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

PETRONET INDIA LIMITED (PIL)

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

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

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

BHARAT RENEWABLE ENERGY LIMITED (BREL)

BREL was incorporated on 17th June2008 for undertaking the production procurementcultivation and plantation of the horticulture crops such as Karanj Jathropha andPongamia trading research and development and management of all crops and plantationincluding Biofuels in the State of Uttar Pradesh with an authorized capital of Rs. 30Crores. The company has been promoted by BPCL with Nandan Cleantech Limited (NandanBiomatrix Limited) Hyderabad and Shapoorji Pallonji group through their affiliate S.P.Agri Management Services Pvt.Ltd. Company Petition No 5 of 2014 was filed before theHon'ble High Court of Allahabad (Lucknow Bench) for winding up BREL. By the Order dated21.12.2015 Mr. Justice Devendra Kumar Upadhyaya ordered that the Company be wound up andofficial Liquidator to proceed in accordance with the provisions of the Companies Act.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report for the year under review as stipulatedunder Regulation 34(e) of SEBI (Listing Obligations and Disclosures Requirement)Regulations 2015 is presented in a separate section forming part of the Annual Report.

The forward looking statements made in the Management Discussion and Analysis Reportare based on certain assumptions and expectations of future events. The Directors cannotguarantee that these assumptions are accurate or these expectations will materialize.

CONSERVATION OF ENERGY RESEARCH AND DEVELOPMENT TECHNOLOGICAL ABSORPTION AND FOREIGNEXCHANGE EARNINGS AND OUTGO

The particulars as prescribed under Sub-Section (3)(m) of Section 134 of the CompaniesAct 2013 read with the Companies (Accounts) Rules 2014 are enclosed as Annexure A tothe Directors' report.

MEMORANDUM OF UNDERSTANDING WITH MINISTRY OF PETROLEUM & NATURAL GAS

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

BOARD EVALUATION

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

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

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

CORPORATE GOVERNANCE

The Report on Corporate Governance together with the Auditors' Certificate oncompliance of Corporate Governance is annexed as Annexure D as required under ListingRegulations and Department of Public Enterprises Guidelines of Corporate Governance forCentral Public Sector Enterprises.

SOCIAL ENVIRONMENTAL AND ECONOMIC RESPONSIBILITIES AND BUSINESS RESPONSIBILITY REPORT

The Corporation is committed to be a responsible Corporate Citizen in society whichleads to sustainable growth and economic development for the nation as well as allstakeholders. In order to be a responsible business to meet its commitment the Board of

Directors of the Company has adopted and delegated to the Sustainability Committee theimplementation of a Business Responsibility Policy based on the principles of NationalVoluntary Guidelines on Social Environmental and Economic Responsibilities of Business asissued by the Ministry of Corporate Affairs Government of India. BPCL's SustainabilityReport is in accordance with the Global Reporting Initiative (GRI).

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

Transactions with Related Parties

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

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

In terms of Listing Regulations and Policy of the Corporation on materiality of relatedparty transactions transaction entered into with Bharat Oman Refineries Limited a JointVenture Company could be considered material. This transaction is being placed forapproval of the shareholders.

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

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

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

RISK MANAGEMENT

The Risk Management Committee of the Board has defined roles and responsibilities whichincludes reviewing and recommending of the risk management plan and reviewing andrecommending the risk management report for approval of the Board with the recommendationby the Audit Committee. The Audit Committee evaluates internal financial controls and riskmanagement systems. The

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

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134 (3) (c) / (5) of the Companies Act 2013 the Directors of theCompany confirm that: a. In the preparation of the Annual Accounts for the year ended 31stMarch 2017 the applicable Accounting Standards have been followed along with properexplanation relating to material departures; b. The Directors have selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company at the end of the financial year and of the profit and loss of the Company forthat period; c. The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;d. The Directors have prepared the annual accounts on a ‘going concern' basis; e. TheDirectors have laid down internal financial controls to be followed by the Company andsuch internal financial controls are adequate and are operating effectively; and f. TheDirectors have devised proper systems to ensure compliance with the provisions of allapplicable laws and such systems are adequate and operating effectively.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

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

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

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

Shri K. Sivakumar was appointed as Additional Director and as Director (Finance) witheffect from 1.5.2017. As he has been appointed as Additional Director he will hold officetill the ensuing Annual General Meeting. Notice under Section 160 of the Act has beenreceived proposing his name for appointment as Director at the ensuing Annual GeneralMeeting.

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

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

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

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

Shri S. Ramesh Director (Marketing) will retire by rotation at the ensuing AnnualGeneral Meeting as per the provisions of Section 152 of the Act and being eligible haveoffered himself for re-appointment as Director at the said Meeting.

As required under the Corporate Governance Clause brief bio-data of the aboveDirectors who are appointed / reappointed at the Annual General Meeting are provided inthe AGM Notice.

DECLARATION OF INDEPENDENCE

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

FAMAILIARISATION PROGRAMMES

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

AUDIT COMMITTEE

The details of the composition of the Audit Committee terms of reference meetingsheld etc. are provided in the Corporate Governance Report which forms part of thisReport.

VIGIL MECHANISM

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

NUMBER OF MEETINGS OF THE BOARD

Twelve meetings of the Board of Directors were held during the year the details ofwhich are given in the Corporate Governance Report that forms part of this Report. Theintervening gap between the meetings was within the period prescribed under the CompaniesAct 2013 and the Listing Regulations.

EXTRACT OF ANNUAL RETURN

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

ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The details are included in the Management Discussion & Analysis Report whichforms part of this Report.

STATUTORY AUDITORS

M/s. CNK & Associates LLP Chartered Accountants Mumbai and M/s. Haribhakti &Co. LLP Chartered Accountants Mumbai were appointed as statutory auditors for the year2016-17 by the Comptroller & Auditor General of India (C&AG) under theprovisions of Section 139(5) of the Companies Act 2013. They will hold office tillconclusion of the ensuing Annual General Meeting. The Auditors' Report does not containany qualification reservation or adverse remark.

COST AUDITORS

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

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

SECRETARIAL AUDITOR

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

The Secretarial Audit Report does contain an observation that "The Company hascomplied with the provisions of the Act Rules Regulations Guidelines Standardsmentioned therein except for non-compliance under Regulations 17 (1) (a)/(b) of SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 Section 149(1) of theCompanies Act 2013 and in terms of clause 2.2 and 3.1.4 of the guidelines issued by DPErelating to the condition of having at least one Woman Director and half of the Board ofDirectors shall comprise of Independent Directors which were not met with during theperiod". Explanations by the Board to the above observation in the SecretarialAuditor Report: BPCL is a Government Company under the Administrative Control of Ministryof Petroleum and Natural Gas. The Government of India makes nomination / appointment ofall categories of Directors in accordance with the laid down Department of PublicEnterprises Guidelines. The subject matter of nomination / appointment of adequate numberof Independent Directors including Woman Director falls under the purview of theGovernment of India.

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

GENERAL

There were no significant or material orders passed by the Regulators or Courts orTribunals impacting the going concern status and Company's operations in future. TheCompany has not issued equity shares with differential rights / sweat equity shares/Employees Stock Options. During the year under review there were three complaints ofsexual harassment in respect of our employees first from an employee of a contractorsecond from an Industrial Trainee and third from the proprietor of a retail outlet.

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

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

ACKNOWLEDGEMENTS

The Directors express their earnest appreciation for the untiring efforts of everyemployee of the Organisation without which BPCL would not have been able to achieve thechallenging targets in all areas of operations. All the Ministries of the Government ofIndia particularly the Ministry of Petroleum & Natural Gas and State Governments havesupported BPCL's progress as well. The continued support of all stakeholders includingmembers customers dealers distributors vendors contractors and other businesspartners provided added impetus to the Corporation's progress.

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

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

ANNEXURE A

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

A. CONSERVATION OF ENERGY

(i) Steps taken or impact on conservation of energy

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

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

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

MUMBAI REFINERY

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

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

• Use of energy saving LED lamps.

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

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

• Implementation of Advance Process Control (APC) schemes in CDU 4 NHT CCRunits.

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

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

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

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

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

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

• Installation of Condensate recovery in BBU.

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

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

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

KOCHI REFINERY

During the year 2016-17 Kochi Refinery implemented a number of projects focused onenergy conservation and loss control. Through these projects reduction in steamconsumption heat recovery and savings in power and fuel could be achieved. The highlightsare given below:

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

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

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

• Reduction of minimum circulation flow in certain streams.

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

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

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

Duringthe Financial Year2016-17solarpowergenerationwas53681 KWHR. Newfacilitiescapable of generating 330 KWHR are being pursued.

Kochi Refinery

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

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

Mumbai Refinery

Sr. No. Details of energy conservation equipments and division Capital investments in ' Crores Energy savings (type; unit; total amount; rate / unit) Remarks if any
1 Replacement of steam ejector by vacuum pump in crude distillation unit (LRVP). Part of RMP Revamp Steam savings=40 MT/D (Rate = '2180/ MT) Steam Consumption reduced
2 Heat Recovery from diesel stream in HCU - provision of steam generator Part of RMP Revamp Steam savings=125 MT/D (Rate = '2180/ MT) Due to heat integration
3 Steam leak & steam trap management in RMP complex 3.5 Steam savings=120 MT/D (Rate = '2180/ MT) Steam Loss reduced
4 Provision of Plate type heat exchangers in ARU & SWS 2.9 Steam savings=55 MT/D (Rate = '2180/ MT) Steam Consumption reduced
5 Provision of PM blower in ETP 1.2 Power savings=100 KWHR (Import Power rate = '9.34 /KWHR) Power consumption reduced
6 Provision of LED bulbs for lighting 0.44 Power savings=50 KWHR (Import power rate = '9.34 /KWHR) Power consumption reduced
7 Maximize heat recovery and energy conservation during the design of new projects such as ISOM/DHT. Divided wall column has been used in the design of ISOM unit to save energy ISOM Project Fuel Savings = 14 MT/D (Rate = ' 18712/ MT) Fuel consumption in furnace reduced
8 Commissioning of Advance process control in CCR in Reactor circuit 4 LSHS Saving = 6.5 MT/D (Rate = '18712 /MT) Fuel & Steam consumption reduced
9 Advance process control in Boilers & Aspen Utility Planner 2.1 LSHS savings = 2.3 MT/D (Rate = '18712 /MT) Due to reduction of steam header pressure & excess O2 to boiler

Kochi Refinery

Sr. No. Details of energy conservation equipments and division Capital investments in ' Crores Energy savings (type; unit; total amount; rate / unit)
1 Reduction of HP steam consumption by 1.45 MT/HR through decreasing the minimum governing speed of VGO HDS RCG Compressor anti-surge control valve. Nil Fuel 909.55 MT/year '140.9 lacs/year ' 15491/MT
2 Commissioned heat recovery from CDU 3 overhead vapors as crude preheat improvement resulting in fuel saving of 1.97 MT/HR. 4.07 Fuel 2479.76 MT/year ' 384.13 lacs/year '15491/MT
3 Stopped VH-E-12 B (stripper overhead fin fan) in VGO HDS unit resulting in power saving of 24.4 KWHR. Nil Electricity 202.03 MW '18.26 lacs/year ' 9.04/KWHR
4 Reduced VH-P-03 minimum circulation flow from 125 to 100 MT/HR resulting in power saving of41.1 KWHR. Nil Electricity 340.31 MW '30.76 lacs/year '9.04/KWHR
5 Stopped one FD fan in VGO HDS heaters VHH01/2 resulting in power saving of 24.4 KWHR. Nil Electricity 202.03 MW '18.26 lacs/year '9.04/KWHR
6 Operating single combustion air blower among DSC 001 A/B/C in DHDS unit resulting in power saving of 165.18 KWHR. Nil Electricity 1321.44 MW '119.46 lacs/year '9.04/KWHR
7 Stopping second LSD pump in DHDS unit resulting in power saving of 77.74 KWHR. Nil Electricity 621.92 MW '56.22 lacs/year '9.04/KWHR
8 Reducing VH-P-10 C minimum circulation flow from 21 to 16.5 MT/HR resulting in power saving of 20.6 KWHR. Nil Electricity 170.57 MW '15.42 lacs/year '9.04/KWHR
9 Stopping VW-EA 11A (SWS 2nd column pump around fin fan cooler) resulting in power saving of 18.96 KWHR. Nil Electricity 157.07 MW '14.2 lacs/year '9.04/KWHR
10 Reduced reboiling steam (LP) in VW-V-02 (VGO SWS 2nd column) from 2.6 to 1.8 MT/HR. Nil Fuel 463.22 MT/year ' 71.76 lacs/year '15491/MT
11 Replacing conventional lighting in plants Control Rooms substations and office rooms resulting in power saving of 251.8 KWHR. 0.5855 Electricity 919.07 MW '83.08 lacs/year '9.04/KWHR
12 Heat recovery by DM water addition in condensate recovery system in VGO SRU resulting in .025 MT/HR of fuel savings. Nil Fuel 207 MT/year '32.07 lacs/year '15491/MT

B. TECHNOLOGY ABSORPTION MUMBAI REFINERY

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

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

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

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

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

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

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

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

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

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

(b) Has technology been fully absorbedRs.

Yes.

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

Not Applicable.

KOCHI REFINERY

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

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

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

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

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

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

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

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

(b) Has the technology been fully absorbed Rs.

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

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

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

Not applicable.

iii. Expenditure on R&D during 2016-17

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

RESEARCH & DEVELOPMENT (R&D)

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

1. Development of Aromatic Free Solvent.

2. Development of indigenous desalter technology.

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

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

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

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

7. Development of viscosity correlation models.

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

9. Development of process for olefins maximization through FCCU.

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

11. Development of catalyst for slurry phase residue hydroprocessing.

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

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

14. Development of Diesel lubricity improver additive.

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

16. Development of superabsorbent polymers.

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

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

19. Development of Biodegradable lubricants for cutting oil application.

20. Process for production of white oils.

21. Gasification & Pyrolysis of coal/biomass.

22. Benzene valorization through niche chemical production.

23. Valorization of Petroleum Sludge.

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

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

26. Eco-friendly Granite Cutting oil.

27. Screw Compressor oil.

28. Defence specific oil.

29. Alternate formulations for existing products.

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

1. For quick prediction of refining characteristics of crude oils an intelligentdevice (dongle) named BP MARRK TM has been launched based on innovative methodology. Itminimizes the time required to predict or estimate the assay composition of anyhydrocarbon stream. BP MARRK TM has been presented to ASTM for its usage as a new standardfor crude oil yield estimation.

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

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

4. Proof of concept for converting benzene to biphenyl via cyclohexylbenzene has beendemonstrated. This will offer a more lucrative alternate of Benzene evacuation atrefineries.

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

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

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

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

9. Development of novel Cross-flow hydroprocessing reactor configuration wherein multiscale facilities have been developed and cold flow studies are in progress to evaluatehydrodynamic parameters vis-a-vis conventional trickle bed reactor under identicalconditions. The developed technology will be superior in terms of conversion energyefficiency and economics.

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

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

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

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

14. Low Viscometric Synthetic Engine oil for high performance passenger cars wouldoffer fuel economy benefits thereby preserving precious petroleum resources besideshelping in generating new business.

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

16. Screw compressor oil would deliver excellent oxidation & thermal resistance andexceptional equipment protection prolonging the life of system components and reliabilityfor Screw air compressors operating under severe conditions and help in generating newbusiness.

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

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

3. Future R&D Plans

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

2. Development of delayed coker unit.

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

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

5. Development of energy efficient domestic LPG burner.

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

7. Development of biodegradable packages.

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

9. Lignocellulosic biomass into value added products.

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

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

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

13. Synthetic Lubricants - PAOs / Esters / Glycols - for various futuristicapplications.

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

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

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

17. Valorization of VGO to Naphthenic base stocks.

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

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

20. High Performance Engine oil compatible with Ethanol blended petrol (up to E85) for4Stroke 2 wheelers.

21. Synthetic Engine oil for High performance passenger cars.

22. High performance Hydraulic Oil.

23. Cutting oil for new generation materials.

24. Fully synthetic transmission fluid for passenger cars.

25. Water resistant grease for Industrial applications.

26. Alternate formulations for existing products.

C) Foreign Exchange Earnings/Outgo

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

2016-17 2015-16
Earnings in Foreign Exchange 9788.58 7137.95
- Includes receipt of '1277.23 Crores (previous yearRs. 1003.91 Crores) in Indian currency out of the repatriable funds of foreign airline and Rs. 54.54 Crores (previous yearRs. 53.93 Crores) of INR exports to Nepal and Bhutan of I&C and Lubes Customers
Foreign Exchange Outgo 62084.76 50701.31
- on account of purchase of Raw Materials Capital Goods Chemicals Catalysts Spare Parts International Trading Activities

ANNEXURE C

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

NAME: BHARAT PETROLEUM CORPORATION LIMITED

Groups

Representation of SCs/STs/OBCs

Number of appointments made during the calendar year 2016

(As on 1.1.2017)

By Direct Recruitment

By Promotion

By Other Methods

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

* 3 Sportspersons recruited in Group 'A'

** 3 Sportspersons recruited in Group 'B'

NAME : BHARAT PETROLEUM CORPORATION LIMITED

Pay Scales (inRs.)

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

Number of appointments made during the calendar year 2016

By Direct Recruitment

By Promotion

By Other Methods

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

* 3 Sportspersons recruited in Group 'A'

NAME : BHARAT PETROLEUM CORPORATION LIMITED

Groups

NUMBER OF EMPLOYEES (as on 01.01.2017)

DIRECT RECRUITMENT-2016

PROMOTION-2016

NO. OF VACANCIES RESERVED

NO. OF APPOINTMENTS MADE

NO. OF VACANCIES RESERVED

NO. OF APPOINTMENTS MADE

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

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

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

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

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

There are no promotions within Group 'D1.

ANNEXURE F

FORM NO. AOC -2

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

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

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

Nil

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

s. No. Name of the Related Party Nature of Relationship Nature of Contract/ Arrangement/ Transactions Duration of the Contract/ Arrangement/ Transactions Salient Terms of the Contracts/ Arrangements/ Transactions Transaction Values in FY 2016-17 (Rs. Crores) Dates of Board Approval Amount Paid as Advances (Rs. Crores)
1 Bharat Oman Refineries Limited (BORL) Joint Venture Company Purchase of Goods 2016-17 Purchase of petroleum products for resale and high sea purchase of Crude Oil 27712.73 NA -
2 Bharat Oman Refineries Limited (BORL) Joint Venture Company Sale of Goods 2016-17 Import of Crude Oil on behalf of BORL and supplies to them. Also sale of lubricants 2144.63 NA -
3 Bharat Oman Refineries Limited (BORL) Joint Venture Company Receiving of Services 2016-17 Interest on the loans provided to BORL 118.69 NA -
4 Bharat PetroResources Limited Subsidiary Company Receiving of Services 2016-17 Interest on the loans provided to BPRL 71.24 NA -
5 Indraprastha Gas Limited (IGL) Associate Company Purchase of Goods 2016-17 Purchase of Compressed Natural Gas for resale at the Retail Outlets 248.16 NA -
6 Indraprastha Gas Limited (IGL) Associate Company Sale of Goods 2016-17 Sale of Liquified Natural Gas / Lubricants. 182.88 NA -
7 Matrix Bharat Pte. Ltd. (MXB) Joint Venture Company Sale of Goods 2016-17 Sale of bunker fuels and export of benzene and FO 1636.57 NA -
8 Numaligarh Refinery Limited (NRL) Subsidiary Company Purchase of Goods 2016-17 Purchase of petroleum products for resale 12201.73 NA -
9 Petronet CCK Limited (PCCK) Subsidiary Company Receiving of Services 2016-17 Transportation of petroleum products through PCCK pipeline 109.78 NA -
10 Petronet LNG Limited (PLL) Associate Company Purchase of Goods 2016-17 Purchase of Regassified Liquified Natural Gas for consumption / sale 3299.44 NA -
11 Petronet LNG Limited (PLL) Associate Company Receiving of Services 2016-17 Regasification of LNG 53.84 NA -
12 Sabarmati Gas Limited (SGL) Joint Venture Company Purchase of Goods 2016-17 Purchase of Compressed Natural Gas for resale at the Retail Outlets 176.02 NA -
13 Sabarmati Gas Limited (SGL) Joint Venture Company Sale of Goods 2016-17 Sale of Liquified Natural Gas 189.21 NA _

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

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

ANNEXURE H

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

Particulars

Balance as on

Maximum amount outstanding during the period

31.03.2017 31.03.2016 2016-17 2015-16
(a) Loans and advances in the nature of Loans :
(i) To Subsidiary Company- Bharat Pefro-Resources Limited 2500.00 650.00 2500.00 650.00
(ii) To Associates- Bharat Oman Refineries Limited 1254.10 1354.10 1354.10 1354.10
(iii) To Firms/ Companies in which directors are interested- Limited - - - -
(b) Investment by the loanee in the shares of BPCL & its subsidiary company - - - -

ANNEXUREJ

DIVIDEND DISTRIBUTION POLICY

PREAMBLE:

The shares of Bharat Petroleum Corporation Limited (the "Company") are listedon the National Stock Exchange of India Limited Mumbai and BSE Limited Mumbai. SEBI videits notification dated 08.07.2016 has inserted Regulation 43A in the Securities andExchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 which requires top five hundred listed entities based on market capitalization(calculated as on March 31 of every financial year) to formulate a dividend distributionpolicy which shall be disclosed in their annual reports and on their websites.

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

OBJECTIVE

The Company aims at maximisation of shareholder value and believes that this can beattained by driving growth. The policy endeavours to strike an optimum balance betweenrewarding shareholders through dividend and ensuring that sufficient profits are retainedfor growth of the Company and other needs. The objective of the policy is to lay down aconsistent approach to dividend declaration.

PARAMETERS FOR DIVIDEND DISTRIBUTION

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

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

> Projections of future profits and cash flows;

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

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

> Applicable taxes including tax on dividend.

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

> Past dividend trends for the Company and the industry.

> State of the economy and capital markets.

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

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

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

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

• The Company is committed to continuous growth and has plans requiringsignificant capital outlay. The retained earnings after distribution of dividend shallprimarily be utilized towards this purpose.

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

GENERAL

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

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

PERFORMANCE PROFILE

Particulars 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
1. Refinery Thruput (TMT)
Imported 20421 18028 17661 16761 17155 16353 14769 14126 13143 13904
Indigenous 4970 6088 5694 6590 6050 6559 7015 6281 6802 7042
TOTAL 25391 24115 23355 23351 23205 22912 21784 20407 19945 20946
2. Production Quantity (TMT) 24206 22965 22149 22052 21843 21522 20547 19199 18628 19570
Light Distillates % 30.05 28.90 27.93 29.19 28.52 28.91 29.83 28.11 26.43 26.64
Middle Distillates % 59.83 60.27 59.65 57.02 56.26 55.42 55.46 54.51 54.24 54.72
Heavy Ends % 10.12 10.83 12.42 13.78 15.22 15.68 14.71 17.38 19.33 18.64
3. Fuel and Loss as % of Crude Processed * 4.7 4.8 5.2 5.6 5.9 6.1 5.7 5.9 6.6 6.6
4. Market Sales (MMT) 37.68 36.53 34.45 34.00 33.30 31.14 29.27 27.89 27.35 25.79
5. Lubricants Production (MT) 293791 295509 287649 258112 258586 217851 220387 209301 151788 161957
6. Market Participation % 22.8 22.9 23.3 23.5 23.1 22.4 22.5 22.5 22.8 22.7
7. Marketing Network
Installations 13 13 13 12 12 12 12 12 12 12
Depots 115 118 114 116 115 115 114 129 120 126
Aviation Service Stations 43 40 35 34 36 36 31 30 23 22
Total Tankages (Million KL) 3.70 3.60 3.52 3.49 3.44 3.43 3.39 3.40 3.33 3.32
Retail Outlets 13983 13439 12809 12123 11637 10310 9289 8692 8402 8251
LPG Bottling Plants 51 50 50 50 50 49 49 49 49 48
LPG Distributors 4684 4494 4044 3355 2949 2658 2452 2187 2117 2137
LPG Customers (No. Million) 59.5 50.6 45.8 41.2 37.4 34.5 31.1 28.3 26.6 25.3
8. Manpower (Nos.) 12484 12623 12687 13214 13213 13343 13837 13900 14016 14006
9. Sales and Earnings (Figures in ' Crores)
i) Sales and Other Income 243476 218072 247552 253492 229796 203866 154886 127884 130118 113936
ii) Gross Profit before Depreciation Interest & Tax 13430 12801 10515 9555 7787 5569 5167 4619 4246 4368
iii) Depreciation 1891 1845 2516 2247 1926 1885 1655 1242 1076 1098
iv) Interest 496 565 583 1359 1825 1800 1117 1011 2166 673
v) Profit before Tax 11043 10391 7416 5949 4036 1884 2395 2366 1004 2597
vi) Tax 3003 3335 2331 1888 1393 573 848 828 268 1017
vii) Profit after Tax 8039 7056 5085 4061 2643 1311 1547 1538 736 1581
10. What the Company Owned (Rs. in Crores)
i) Gross Property Plant and Equipment (including Capital Work-in-Progress and Investment Property) 46761 37700 49475 41229 36095 32846 30307 27930 24560 22268
ii) Net Property Plant and Equipment (including Capital Work-in-Progress and Investment Property) 43060 35872 27981 22105 19110 17732 16972 16187 14003 12735
iii) Net Current Assets 96 (65) (991) 9584 14690 13612 9715 19954 20536 15445
iv) Non-Current Assets 14672 11283 11463 10671 9482 8430 8113 - - -
Total Assets Net (ii+iii+iv) 57828 47090 38453 42360 43282 39774 34800 36141 34539 28180
11. What the Company Owed (Rs. in Crores)
i) Share Capital@ 1311 656 723 723 723 362 362 362 362 362
ii) Other Equity 28357 26667 21744 18736 15911 14552 13696 12725 11766 11315
iii) Total Equity ( i+ii ) 29668 27323 22467 19459 16634 14914 14058 13087 12128 11677
iv) Borrowings 23159 15857 13098 20322 23839 22994 18960 22195 21172 15022
v) Deferred Tax Liability (net) 3502 2622 1708 1361 1656 1401 1008 859 1239 1481
vi) Non- Current Liabilites 1499 1288 1180 1218 1153 465 774 - - -
Total Funds Employed (iii + iv + v +vi) 57828 47090 38453 42360 43282 39774 34800 36141 34539 28180
12. Internal Generation (Rs. in Crores) 5716 7114 5989 4586 4002 3135 2759 1897 1282 2636
13. Value Added (Rs. in Crores) 25903 24885 20569 20855 17638 14837 12926 10085 10447 8024
14. Earnings in Foreign Exchange (Rs. in Crores) 9789 7138 12364 19122 18456 19316 12380 9504 6567 7440
15. Ratios
i) Gross Profit before Depreciation Interest & Tax as % age of Sales and Other Income 5.5 5.9 4.1 3.5 3.1 2.5 3.1 3.5 2.9 3.5
ii) Profit after Tax as % age of average Total Equity 28.2 28.3 24.3 22.5 16.8 9.1 11.4 12.2 6.2 14.4
iii) Gross Profit before Depreciation Interest & Tax as % age of Capital Employed 30.1 38.9 36.1 25.4 19.7 14.6 15.7 13.7 13.1 15.9
iv) Profit before Tax as % age of Capital Employed 24.8 31.6 25.5 15.8 10.2 4.9 7.2 7.0 3.1 9.5
v) Profit After Tax as % age of Capital Employed 18.0 21.4 17.5 10.8 6.7 3.4 4.7 4.6 2.3 5.8
vi) Debt Equity Ratio 0.78 0.58 0.58 1.04 1.43 1.54 1.35 1.70 1.75 1.29
16. Earnings per Share (Rs.) # 61.31 53.81 35.16 28.08 18.28 9.07 10.70 10.63 5.09 10.93
17. Book Value per Share (Rs.) # 226.26 208.38 155.36 134.56 115.02 103.13 97.21 90.49 83.87 80.75
18. Dividend^
i) Percentage 325 310 225 170 110 110 140 140 70 40
ii) Amount (Rs. in Crores) 4700 2242 1627 1229 795 398 506 506 253 145

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

The figures from the year 2010-11 and onwards are prepared as per the requirements ofthe Revised Schedule VI/Schedule III as applicable @ The share capital for 2016-17 and2015-16 is after adjustment of BPCL Trust for Investment in Shares.

# Adjusted for 1:1 bonus issue in July 2016

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