6th ANNUAL REPORT 2012-2013 - ONGC TERI Biotech Ltd · 6th annual report 2012-2013 four stages of...

6th

ANNUAL REPORT

2012-2013

FOUR STAGES OF BIOREMEDIATION

ONGC TERI Biotech Limited (A ISO-9001:2008, ISO-14001:2004, OHSAS-18001:2007 CERTIFIED COMPANY)

AN ISO9001:2008;

14001:2004&18001:2007

CERTIFIED COMPANY

Reg. No. : RI91/7445

ONGC TERI Biotech Limited

BOARD OF DIRECTORS

Shri N.K.Verma Chairman (From 03.05.2013)

Shri S.V.Rao Chairman (From 31.12.2012 to 31.03.2013)

Shri A.K.Hazarika Chairman (Up to 01.10.2012)

Dr. Banwari Lal Director & CEO

Shri M.M.Joshi Director

Dr. D.M.Kale Director

Dr. R. V. Marathe Director (Up to 22.06.2012)

Shri Anoop Kumar Director (Up to 01.11.2012)

Shri R.K.Sharma Director (From 22.06.2012)

Shri M.L.Jain Director (From 31.12.2012)

STATUTORY AUDITORS

M/s A. K. Khurana & Associates

Chartered Accountants,

New Delhi

BANKERS

State Bank of Hyderabad,

Lodhi Road, New Delhi

REGISTERED OFFICE

The Energy and Resources Institute,

Darbari Seth Block, IHC Complex,

Lodhi Road, New Delhi-110003


NOTICE

NOTICE is hereby given that the 6th Annual General Meeting of the Members of ONGC TERI

Biotech Limited will be held on Friday, the 27th September,2013 at 15.00 Hrs. at 7th Floor,

Conference Room, ONGC, Jeevan Bharti, Tower-II, 124, Indira Chowk, New Delhi-110001, to

transact the following Business;

As Ordinary Business:

1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2013 and

the Profit and Loss Account of the Company for the financial year ended on that date

together with the Reports of the Directors and the Auditors thereon.

2. To appoint a Director in place of Shri N. K. Verma retires by rotation and being eligible,

offers himself for re-appointment.

3. To appoint a Director in place of Shri M. M. Joshi who retires by rotation and being

eligible, offers himself for reappointment.

As Special Business:

4. To consider and if thought fit, to pass with or without modification(s), the following as a Special

Resolution:

“RESOLVED THAT pursuant to section 224A of the Companies Act, 1956, (including any

statutory modification or re-enactment thereof for the time being in force and as may

be enacted from time to time) M/s A. K. Khurana & Associates, Chartered Accountants,

Membership No.084245, the retiring Statutory Auditors of the Company from whom the

Company has received a Certificate under Section 224 (1)(B) of the Act, being eligible,

be and are hereby, re-appointed as the Statutory Auditors of the Company to hold

office from the conclusion of this meeting until the conclusion of the next Annual

General Meeting of the Company at a remuneration of Rs.75,000/- exclusive of the

applicable Service Tax and out of pocket expenses.”

By Order of the Board of Directors

for ONGC TERI Biotech Limited

Sd/-

Place: New Delhi (Dr. Banwari Lal)

Date: 27th September, 2013 Director & CEO

NOTES:

1. A Member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and vote instead of himself

and the Proxy need not be a Member of the Company. Proxies in order to be effective must be received by the

Company not less than forty-eight hours before the meeting.

2. The relevant Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 in respect of item no. 4 stated

above is annexed hereto.


EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956

Item No. 4

As per section 224A of the Companies Act, 1956, the re-appointment of an auditor shall be

made by a Special Resolution since Oil and Natural Gas Corporation Limited, a

Government Company holds more than 25% (Twenty-five) of the Subscribed Capital of the

Company.

The Board of Directors recommends the resolution for your approval as a Special Resolution.

None of the Directors of the Company is in any way concerned or interested in the

resolution.

By Order of the Board of Directors


Sd/-

Place: New Delhi (Dr. Banwari Lal)

Date: 27th September, 2013 Director & CEO


DIRECTORS’ REPORT

Dear Members,

Your Directors are pleased to present the 6th Annual Report together with the Audited

Accounts of the Company for the period ending on 31st March, 2013.

Financial Results

The Company has followed the Project Completion method for recognizing revenue.

Based on Projects closed, your Company during the year has generated gross revenue of

Rs. 1,366.05 lakhs (Previous year - Rs. 1,299.62lakhs). After meeting the operational & other

expenses, after tax carried forward net profit of your Company is Rs. 400.48 lakhs (Previous

year - Rs. 327.85 lakhs).

Dividend

Your Directors do not recommend payment of any dividend for the period ended 31st

March, 2013.

Operations Highlights

Your Company which was set-up as a Joint-Venture of Oil and Natural Gas Corporation

Ltd., (ONGC) and The Energy and Resources Institute (TERI) continues to provide oil field

services to the Oil and Gas Industry using microbial methods primarily in four areas,

namely:

1. Bio-remediation using Oilzapper Technology;

2. Microbial Enhanced Oil Recovery;

3. Application of Paraffin Deposition Bacteria (PDB) technology to prevent

chocking of Production Tubing; and

4. Wax Deposition Prevention (WDP) in flow lines.

Order Book

(i) Bioremediation Jobs

Your Company during the year successfully executed the Bio-remediation job by

use of “Oilzapper” Technology at following sites:

i) Oil India Limited, Duliajan - 9000 MT. of Oily Sludge

ii) ONGC, Mehsana Asset - 15000 MT. of Oily Sludge

iii) ONGC, Ankleshwar Asset - 250 MT. of Oily Sludge


Making of a Secured Pit Sprinkling of OILZAPPER

The following work orders, which are under execution by your Company, were also

received during the year:

i) ONGC Ankleshwar Asset - 14,910 MT. of Oily Sludge

ii) ONGC Nazira Asset - 22,984 MT. of Oily Sludge

Before application of Oilzapper After final application of Oilzapper

at OIL, Duliajan at OIL , Duliajan

(ii) Microbial Enhanced Oil Recovery (MEoR)

Execution of Microbial Enhanced Oil Recovery (MEoR) job in 12 wells of ONGC

Ankleshwar Asset was completed by your Company during the year.


Execution of MEOR job in oil wells HOC/CTU job at GLK#160

Execution of MeOR job in Oil Wells

(iii) Wax Deposition Prevention (WDP)/ Paraffin Degrading Bacterial (PDB)

During the year, your Company successfully completed Wax Deposition

Prevention (WDP) job in about 15.7 KM of flow line and Asphaltane Degrading

Bacterial (ADB) job in 4 wells of ONGC, Mehsana Asset, respectively. Job order for

Paraffin Degrading Bacterial (PDB) in 30 wells from ONGC, Assam Asset also

received during the year was under execution.

Execution

Execution of PDB job in Oil Wells

Rate Contract

During the year your Company entered into a long-term three years Rate Contract with

ONGC valid up to December 4, 2015 wherein your Company shall carry out

Bioremediation of approximately 75,000 MT of oily sludge/oil soaked soil at various work

centres of ONGC. The Rate Contract is valued at an estimated value of Rs. 21, 06,

70,000/- (Rupees Twenty One Crore Six Lacs Seventy Thousands, only), and will

ensure continuous flow of job orders for Bioremediation over its full term.


Future Outlook

The order book of your Company continues to be overflowing with several proposals in

pipeline and nearing maturity.

The First International work order of the estimated contract value of Rs.3.50 Crore for

Bioremediation of 15,000 Cubic Meters of waste sludge oil and contaminated solids at

Canadian Nexen Petroleum, Yemen received by your Company, is under execution.

ISO Certificate of Compliance

During the year, your Company successfully completed the 1st Surveillance Audit and the

Certificate for its Integrated Management System for „Providing & Promoting

Biotechnological Solutions to Oil and Gas Industry‟, being compliant with the

requirements of International Standards of quality Management System-ISO 9001:2008;

Environmental Management System- ISO14001:2004 and Occupational Health and Safety

Management System-OHSAS18001:2007 was renewed by the International Certification

Services Pvt. Ltd.,(ICS). The Certificate is valid for Three years i.e., up to 15th March, 2015.

Authorization of Bioremediation Services by PCB, Assam

Your Directors are pleased to inform that Pollution Control Board, Assam has granted

initial authorization under provisions of Rules5 (4) of Hazardous Waste (Management,

Handling & Transboudary Movement) Rules, 2008 for collection, reception, treatment,

transportation & storage of Hazardous Wastes (oily Sludge) during the Bio-remediation of

sludge pits at various sites through out Assam . The initial authorization will be for a period

of two years.

Fixed Deposit

The Company has not accepted any Fixed Deposits from the public.

Auditors

M/s A.N. Khurana & Associates, Chartered Accountants, New Delhi, Statutory Auditors of

the Company holds office until the conclusion of the forthcoming Annual General

Meeting of the Company and are recommended for reappointment. The Company has

received certificate from them to the effect that their appointment, if made, would be

within the provisions of Section 224(1) of the Companies Act, 1956.

There is no qualification in the Auditors‟ Report for the year ended 31st March, 2013.

Particulars of Employees

There is no employee in the Company whose particulars are required to be given under

Section217 (2A) of the Companies Act, 1956.


Particulars of Conservation of Energy, Technology Absorption etc.

Your Company while providing bioremediation solutions to the Oil and Gas Industry is

continuously endeavouring to develop most energy efficient processes and devices.

Wherever possible, energy conservation measures have been implemented. For

example, use of low pressure pumps to send environmental friendly microbial solution for

recovery of trapped oil in the reservoirs; use of microbial system to form bio-films in the

pipelines preventing paraffin deposition for considerable time and eliminating use of

energy sapping drilling instruments, shut-down of operations and use of energy intensive

mechanical scrappers; microbes using toxic waste as source of nutrients and converting

the same to compost, requiring no external energy and the wastes converted to CO2,

water and bacterial biomass, etc. Microbial methods used are thus latest in the fast

evolving field of bioremediation solutions backed by robust research and development.

Effort to conserve & optimize use of energy and absorb new techniques is a continuous

process in your Company. The Company has neither earned nor spent any foreign

exchange during the accounting period ended 31st March, 2013.

Directors’ Responsibility Statement

As required under Section 217 (2AA) of the Companies Act, 1956, your Directors state

that:

(i) that in the preparation of the Annual Accounts, the applicable accounting

standards have been followed;

(ii) that the accounting policies selected and applied are consistent and the

judgment and estimates made are reasonable and prudent so as to give a

true and fair view of the state of affairs of the Company at the end of the

financial year and of the profit or loss of the Company for that period;

(iii) that proper and sufficient care has been taken for the maintenance of

adequate accounting records in accordance with the provisions of the

Companies Act, 1956 for safeguarding the assets of the Company and for

preventing and detecting fraud and other irregularities;

(iv) that the Annual Accounts have been prepared on a going concern basis.

Directors

Shri A. K. Hazarika, First Chairman of your Company, ceased to be a Director on the

Board of your Company w.e.f 1st October, 2012. Your Board of Directors place on record

its appreciation of the advice, guidance and yeoman services provided by him in the

initial and formatives years of your Company.

Dr. R. V. Marathe and Shri Anoop Kumar also ceased to be Directors on the Board w.e.f.

22nd June & 1st November, 2012, respectively. Your Board of Directors place on record its

appreciation of the guidance, support and the contribution made by them during the

tenure they were Directors on the Board.


Shri S. V. Rao, who was appointed Chairman of the Board of Directors w.e.f. 31st

December, 2012 ceased to be a Director on the Board w.e.f. 31st March, 2013. Your

Board of Directors places on record its appreciation of the guidance provided by him

during the short duration he was a Director on the Board.

During the year, Shri N. K. Verma joined as Chairman of the Board of Director w.e.f.3rd

May, 2013. S/Shri R. K. Shrma and M. L. Jain also joined your Board of Directors w.e.f.22nd

June & 31st December, 2012, respectively.

In accordance with the provisions of the Companies Act, 1956 and the Articles of

Association of the Company, S/Shri N. K. Verma and M. M. Joshi, Directors retire by

rotation and being eligible, offer themselves for re-appointment.

None of the Directors are disqualified from being appointed as Directors in terms of

provisions of Section 274(1) (g) of the Companies Act, 1956.

Acknowledgements

The Directors wish to thank and deeply acknowledge the co-operation, assistance and

support extended by ONGC, TERI and other shareholders, Company‟s bankers and

Statutory Auditors etc. The Directors also wish to place on record their appreciation of the

contribution made at all levels by the employees of your Company.

Regd. Office: On behalf of the Board of Directors


The Energy and Resources Institute,

Darbari Seth Block, IHC Complex,

Lodhi Road, New Delhi-110003 Sd/-

(N.K. Verma)

Date: 27TH September, 2013 Chairman


AUDITOR’S REPORT

The Shareholders of ONGC TERI BIOTECH LIMITED

We have audited the attached Balance Sheet of ONGC TERI BIOTECH LIMITED as

at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow Statement

for the year ended on that date annexed thereto. These financial statements are

the responsibility of the Company‟s management. Our responsibility is to express

an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally

accepted in India. Those standards require that we plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free of

material misstatement. An audit includes examining, on a test basis, evidence

supporting the amounts and the disclosures in the financial statements. An audit

also includes assessing the accounting principles used and significant estimates

made by management, as well as evaluating the overall financial statement

presentation. We believe that our audit provides a reasonable basis for our

opinion.

As required by the Companies (Auditor‟s Report) order 2003 issued by the Central

Government of India in terms of Section (4A) of Section 227 of the Companies

Act 1956, we enclose in the annexure a statement on the matters specified in

paragraphs 4 & 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations which to the

best of our knowledge and belief were necessary for the purpose of our

audit.

ii) In our opinion, proper Books of Account as required by law have been

kept by the Company so far as it appears from our examination of such

books;

iii) The Balance Sheet, the Statement of Profit and Loss Account and the

Cash flow Statement dealt with by this report are in agreement with the

Books of Account;

iv) In our opinion, the Balance Sheet, the Statement of Profit and Loaa and

the Cash Flow Statement dealt with by this report comply with the

Accounting Standards referred to in sub-section (3C) of Section 211 of

the Companies Act, 1956.


v) On the basis of written representations received from the Directors, as on 31st

March 2012, and taken on record by the Board of Directors, we report that

none of the Directors is disqualified as on 31st March 2013 from being

appointed as a director in terms of clause (g) of sub-section (1) of section 274

of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the

explanations given to us, the said accounts give the information required by

the Companies Act, 1956, in the manner so required and give a true and fair

view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the State of Affairs of the

Company as at 31st March, 2013;

(b) In the case of the Profit and Loss Statement, of the Profit for the

year ended on that date.

(c) In the case of the Cash Flow Statement, of the cash flows of the

Company for the year ended on that date.

For A.K.KHURANA & ASSOCIATES

CHARTERED ACCOUNTANTS

(Registration No.00537IN)

Sd/-

Place: New Delhi (ASHOK KHURANA)

Date: 3rd May, 2013 SOLE PRACTITIONER

Membership No.: 084245


ANNEXURE TO AUDITOR’S REPORT

1. a) The Company has maintained proper records showing full particulars including

quantitative details and situation of fixed assets.

b) The Company has a programme of physical verification of fixed assets which is,

in our opinion, reasonable having regard to the size of the Company and the

nature of its assets. In accordance with this programme, certain fixed assets

have been physically verified by the management during the year and no

serious discrepancies have been noticed on such verification.

C) As per the policy of Company, the temporary site installations for execution of

Job(s) are expensed as project expenditures which is reasonable having

regard to the nature and size of operations.

d) The Company has not disposed off any fixed assets during the year.

2. The nature of business of the Company does not require it to maintain inventories

except for the limited purpose of consumption of chemicals and consumables at

the site locations of customers while executing jobs.

a) As per the information and explanation given to us, the same have been

physically verified by the management at regular intervals.

b) In our opinion and according to the information and examinations given to us,

the procedures of physical verification followed by the management are

reasonable and adequate in relation to the size and nature of its business.

c) On the basis of our examination of the records, we are of the opinion that the

Company is maintaining reasonable proper records in view of the nature and

size of its operations.

3. The Company has not granted or taken any loans, secured or unsecured

to/from companies, firm or other parties covered in the register maintained

under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us,

having regard to the explanations that some of the items purchased and

services availed/ rendered are of special nature and suitable alternative

sources do not exist for obtaining comparable quotations, there are adequate

internal control procedures commensurate with the size of the Company and

the nature of business with regard to purchase of inventory and fixed assets

and with regard to the services rendered. During the course of our audit, we

have not observed any continuing major weaknesses in such internal control.

5. The Company has not accepted any deposits from the public under the

meaning of section 58A and 58AA of the Companies Act, 1956 or any other

relevant provision of the Act and the rules framed there under.


6. In our opinion and according to the information and explanations given to us,

the Company is generally regular in depositing undisputed statutory dues

including income tax, sales tax, service tax, custom duty and cess and other

statutory dues, if any with the appropriate authorities. There are no arrears of

outstanding statutory dues as at 31st March 2012 for a period of more than six

months from the date they became payable.

7. The Company has neither accumulated losses nor has incurred cash losses in

the financial year or in the immediately preceding financial year.

8. The Company has not granted loans and advances on the basis of security by

way of pledge of shares and other securities.

9. Based upon the audit procedures performed and as per the information and

explanations given to us by the management, we report that no fraud on or by

the Company has been noticed during the year.

10. The Comment on other matters are required by the Company‟s (Auditor‟s

Report) Order, 2003 are not given as the same are not applicable to the

Company.



(Registration No.00537IN)

Sd/-

Place: New Delhi (ASHOK KHURANA)

Date: 3rd May,2013 SOLE PRACTITIONER

Membership No.: 084245


BALANCE SHEET AS AT 31ST MARCH, 2013

PARTICULARS

NOTE NO. CURRENT YEAR

(31.03.2013)

PREVIOUS YEAR

(31.03.2012)

I. EQUITY AND LIABILITIES

1 Shareholders’ funds

Share Capital 2 5,00,000 5,00,000

Reserve and Surplus 3 11,71,71,926 7,71,23,633

2 Current liabilities

Trade payables 3,26,42,492 6,69,45,055

Other current liabilities 4 15,88,69,962 11,70,15,140

Short term provisions 5 47,48,745 4,87,277

31,39,33,125 26,20,71,104

II. ASSETS

1 Non-current assets

Fixed Assets

- Tangible Assets 6 48,18,733 53,84,810

Deferred Tax Assets (Net) 1,15,465 1,16,758

Long Term Loan and Advances 7 48,15,000 38,51,100

2 Current assets

Trade Receivables 8 9,36,33,792 6,07,78,987

Cash and Cash Equivalents 9 10,20,55,283 10,63,89,439

Short Term Loan and Advances 10 7,780 76,138

Other Current Assets 11 10,84,87,072 8,54,73,873

31,39,33,125 26,20,71,104

See significant Accounting Policies and accompanying Notes to the Financial Statements

Auditor's Report

As per our report of even date attached

for A .K .KHURANA & ASSOCIATES


(Reg.No. 005371N)

Sd/- Sd/- Sd/-

(ASHOK KHURANA) ( N.K.VERMA) (BANWARI LAL)

SOLE PRACTITIONER CHAIRMAN DIRECTOR & CEO

(M. No. 084245)

PLACE :NEW DELHI

DATED : 3rd

May,2013


PROFIT & LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013

PARTICULARS NOTE NO. CURRENT YEAR

(31.03.2013)

PREVIOUS YEAR

(31.03.2012)

I. Revenue from projects closed 13,66,05,074 12,99,61,535

II. Other Income 12 82,66,096 88,41,487

III. Total Revenue (I+II) 14,48,71,170 13,88,03,022

IV. Expenses :

Costs on projects closed 7,18,30,357 7,59,38,261

Employee benefits expense 13 78,99,664 67,60,765

Other expenses 14 49,96,038 58,06,735

Depreciation 6 8,60,696 9,31,729

Total Expenses 8,55,86,755 8,94,37,489

V Profit / (Loss) before tax (III-IV) 5,92,84,415 4,93,65,533

VI Tax expense:

Less: Provision for Income Tax 1,92,34,828 1,63,86,233

Less: Income Tax written off - 2,05,700

Add: Deferred Tax Asset (1,293) 11,766

VII Profit / (Loss) after tax (V -VI) 4,00,48,293 3,27,85,366


Auditor's Report




(Reg. No. 005371N)

Sd/- Sd/- Sd/-

(ASHOK KHURANA) (N.K.VERMA) (BANWARI LAL)

SOLE PRACTITIONER

(M. No. 084245)

CHAIRMAN DIRECTOR & CEO

PLACE :NEW DELHI

DATED : 3rd

May,2013


STATEMENT OF CASH FLOWS FOR THE PERIOD 1ST APRIL,2012 TO 31ST MARCH, 2013

PARTICULARS CURRENT

YEAR

(31.03.2013)

PREVIOUS

YEAR

(31.03.2012)

Cash Flow from Operating Activities

Net Profit after Tax 4,00,48,293 3,27,85,366

Adjustments for:

Depreciation 8,60,696 9,31,729

Preliminary / Preoperative Expenses w/off 56,133 56,134

Operating Profit before working capital changes 4,09,65,123 3,37,73,228

Adjustments for:

(Increase) / Decrease in Current Assets (5,68,19,680) (5,83,42,418)

Increase / (Decrease) in Current Liabilities 1,18,13,727 5,49,91,969

Deferred Tax Assets 1,293 (11,766)

Net Cash from Operating Activities 'A' (40,39,537) (40,39,537) 3,04,11,013

Cash Flow from Investing Activities

Purchase of Fixed Assets (2,94,619) (10,21,592)

Net Cash utilised in Investing Activities 'B' (2,94,619) (10,21,592)

Cash Flow from Financing Activities

Net Cash utilised in Financing Activities 'C' -

Net Increase / (Decrease) in Cash and Cash

Equivalents (A+B+C)

(43,34,156) 2,93,89,421

Opening Cash and Cash Equivalents 10,63,89,439 7,70,00,018

Closing Balance of Cash and Cash Equivalents 10,20,55,283 10,63,89,439

Cash and Cash Equivalents comprise:

Cash and Bank Balance 10,20,55,283 10,63,89,439

10,20,55,283 10,63,89,439


Auditor's Report




(Reg. No. 005371N)

Sd/- Sd/- Sd/-


SOLE PRACTITIONER

(M. No. 084245)

CHAIRMAN DIRECTOR & CEO

PLACE :NEW DELHI

DATED : 3rd

May,2013


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST

MARCH, 2013

1 SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation

The Company has followed mercantile system of accounting and recognizes Income &

Expenditure on accrual basis. The accounts are prepared on historical cost basis, as a

going concern, and are consistent with the generally accepted accounting principles.

b) Use of Estimates

The preparation of financial statements requires estimates and assumptions which affect

the reported amount of assets, liabilities, revenues and expenses of the reporting period.

The difference between the actual results and estimates are recognized in the period in

which the results are known or materialized.

c) Fixed Assets / Depreciation

Fixed assets are stated at historical cost less accumulated depreciation and impairment.

Temporary site installations for execution of job are expensed as project expenditure in

the year in which they are incurred. Depreciation on Fixed Assets has been provided on

written down value basis according to the rates prescribed in Schedule XIV of the

Companies Act, 1956 for the actual period of use.

d) Revenue Recognition

The nature of services rendered by the company is a job comprising of several tasks.

The costs incurred also substantially depend upon the tasks undertaken. The

measurement of stage wise completion based on quantity of work done or costs incurred

are impractical and may reflect distorted results. Therefore, the revenue from projects

based on execution and costs attributable and allocable thereto are recognized on full

completion or substantial completion of the related projects and are billed in accordance

with the contractual terms specified in the contract / agreement. Wherever possible or

applicable, in case the breakup of job into definite tasks along with its proportionate

costs and revenues are available, the revenue is recognized on completion of each task

comprised in the job. However, the invoicing is done on the basis of terms and

conditions specified in the work order and the same may or may not represent the work

completion stage to the extent of invoicing done.

e) Employee Benefits

a) All short term employee benefits (including defined contribution plans) are recognized

at actual cost in the period in which they are incurred.

b)


Since the company has been operative only for 6 years, the discounted value of other

benefits (including terminal and post-retirement benefits) are not recognized, due to its

nominal impact in value terms at this stage.

f) Project Expenses

All direct expenses incurred towards execution of job as well as other general

administrative expenses incurred at site are allocated to the activities/job and

charged/treated in profit and loss statement accordingly.

g) Taxes on Income

Provision for current tax is made as per the provisions of the Income Tax Act, 1961.

Deferred Tax Liability/Asset resulting from ‘timing difference’ between book profit

and taxable profit is accounted for considering the tax rate and laws that have been

enacted or substantially enacted as on the Balance Sheet date.

h) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized

when there is a present obligation as a result of past events and it is probable that there

will be an outflow of resources. Contingent Assets are neither recognized nor disclosed

in the financial statements.

2 SHARE CAPITAL

CURRENT YEAR PREVIOUS YEAR

(31.03.2013) (31.03.2012)

AUTHORISED

10,00,000 Equity Shares of Rs.10/- each 1,00,00,000 1,00,00,000

1,00,00,000 1,00,00,000

ISSUED, SUBSCRIBED AND PAID UP

50,000 Equity Shares of Rs.10/-each fully paid

up

5,00,000 5,00,000

5,00,000 5,00,000

The Company has issued only one class of shares referred to as equity shares having a par

value of Rs.10/-

Each holder of equity shares is entitled to one vote per share.

Following are the names of the shareholders together with the number of Equity Shares

holding more than 5 percent of the total Equity Shares:


ONGC 24,990 24, 990

Percentage 49.98 49.98

THE ENERGY & RESOURCES INSTITUTE 24,010 24,010

Percentage 48.02 48.02

3 RESERVES AND SURPLUS

Opening balance 7,71,23,632 4,43,38,266

Add: Net Profit/(Net Loss) for the current year 4,00,48,293 3,27,85,366

Closing balance 11,71,71,926 7,71,23,633

4 OTHER CURRENT LIABILITIES

- Income from Ongoing Projects 15,87,47,176 11,68,92,493

- Other Liabilities 18,472 -

- TDS Payable 1,04,314 1,22,647

15,88,69,962 11,70,15,140

5 SHORT TERM PROVISIONS

- Provision for Taxation 3,56,21,061

Less:- Advance Tax/TDS 3,24,21,411 31,99,650 4,87,277

- Service Tax payable 15,49,095 -

47,48,745 4,87,277

7 LONG TERM LOANS AND ADVANCES

- Security Deposit Against Projects 47,51,650 37,77,750

- Security Deposit Others 63,350 73,350

48,15,000 38,51,100

8 TRADE RECEIVABLES CURRENT

YEAR

PREVIOUS

YEAR

(Unsecured considered good) (31.03.2013) (31.03.2012)

- Trade receivables outstanding for a period exceeding

six months from the date they are due for payment

1,90,21,532

17,487


- Trade receivables outstanding for a period less than

six months from the date they are due for payment

7,46,12,260

9,36,33,792 6,07,61,500

9,36,33,792 6,07,78,987

The amount includes due from ONGC Limited, the investing entity Rs. 74,272,661

(previous year Rs.49,923,147)

9 CASH AND CASH EQUIVALENTS

- Cash-in-Hand 715 715

- Balance with Scheduled Bank 2,48,616 11,46,163

- Fixed Deposit

- held as margin money 3,62,51,144 2,87,07,721

- others 6,55,54,808 7,65,34,840

10,20,55,283 10,63,89,439

10 SHORT TERM LOANS AND ADVANCES

(Unsecured considered good)

- Earnest Money Deposit - 24,000

- Advance to suppliers / others (2,220) 52,138

- Advance to Staff 10,000 -

7,780 76,138

11 OTHER CURRENT ASSETS

- Cost on Ongoing Projects 9,99,92,572 7,74,05,462

- Tax Deducted at Source (against ongoing projects) 39,71,010 22,68,635

- Income Tax Refundable 4,38,151 4,38,151

- Service Tax (Cenvat Credit) - 43,371

- Interest accrued on Fixed Deposit 40,35,339 51,97,954

- Prepaid Expenses 50,000 64,167

- Preliminary / Pre-Operative Expenses - 56,133

10,84,87,072 8,54,73,873


12 OTHER INCOME

- Interest on Fixed Deposit 82,66,096 88,41,487

82,66,096 88,41,487

13 EMPLOYEE BENEFITS EXPENSES

Staff salary, allowances and reimbursement 71,74,363 60,12,518

Employer's contribution to PF and admin. Charges 2,34,834 2,11,830

Group Insurance 3,14,167 3,20,833

Staff Welfare 1,76,300 2,15,584

78,99,664 67,60,765

14 OTHER EXPENSES CURRENT YEAR

(31.03.2013)

PREVIOUS YEAR

(31.03.2012)

Web development & Maintenance Charges 17,771 15,599

Rent-Project / Site office 4,89,710 4,38,660

Books & Periodicals 9,420 9,097

Telephone/Internet Expenses 1,41,619 1,33,993

Courier charges 63,413 87,682

Electricity charges 63,266 52,737

Professional / Consultancy/legal fees 18,11,295 23,89,352

Travelling & Conveyance 9,20,861 10,04,798

Miscellaneous / Sundry Expenses 18,192 1,25,318

Printing Stationery & Computer supplies 2,02,308 1,78,198

Repair & Maintenance-Others 5,22,131 1,78,331

Taxes & Fees 31,149 39,420

Advertisement, Publicity & Business Promotion 98,631 6,16,779

Auditors Remuneration 1,73,325 1,43,100

Bank charges 3,76,814 3,37,537

Preliminary / Preoperative Expenses w/off 56,133 56,134

49,96,038 58,06,735

15 JOINT VENTURE / ASSOCIATES

The Company is a joint venture company formed by ONGC Ltd. in association with The

Energy and Resources Institute, New Delhi, both being investing entities.

16 CONTINGENT LIABILITIES

Outstanding Performance Bank Guarantees issued Rs. 3,60,72,688/-.

(Previous Year Rs. 2,86,88,738)


17 EXPENDITURE INCURRED IN FOREIGN CURRENCY

NIL (Previous year NIL) 18 The details of Auditors remuneration is as under

Audit Fees 1,17,500 97,500

Certification work & other services 46,000 30,000

Out of Pocket Expenses & Service Tax 9,825 15,600

1,73,325 1,43,100

19 The preliminary / preoperative expenses have been written off over a period of five years.

20 Related Party Disclosures

Name Relationship

ONGC Ltd. Investing Entity

The Energy & Resources Institute, New Delhi Investing Entity

Details of Transactions

Services Provided

ONGC 18,08,58,090.00 12,83,81,961.00

(based on invoicing)

Purchases /Services availed

TERI

(based on invoicing) 6,62,55,918.00 7,28,52,997.00

ONGC(Rent) 2,07,790.00 1,98,000.00

Amount Receivable

ONGC Ltd. 7,42,72,661.00 4,99,23,147.00

Amount Payable

TERI 1,99,15,000.00 5,90,10,286.00

Key Management Personnel

No remuneration was paid to key management personnel during current as well as previous

year.

21 Some balances of Trade Receivable / Payable are subject to confirmation / reconciliation.

Adjustments, if any, will be accounted for on confirmation / reconciliation of the same,

which will not have any material impact.


22 Previous Year’s figures have been regrouped / rearranged to make them comparable with

the current year’s figures.

Auditors Report

As per our report of even date



(Firm Reg. No:005371N)

Sd/- Sd/- Sd/-


SOLE PRACTITIONER

M.No:084245

CHAIRMAN DIRECTOR &CEO

Place : New Delhi

Date : 3rd

May, 2013


DEPRECIATION for the Year 01.04.2012 to 31.03.2013

NOTE-6

Particulars Rate Gross Block Depreciation Net Block

%

As on Additions Sale As on Up to For the Up to As on As on

31.03.2012 31.03.2013 31.03.2012 Year 31.03.2013 31.03.2012 31.03.2013

Computer 40 5,12,225 1,98,709 7,10,934 2,86,727 1,24,647 4,11,374 2,25,498 2,99,560

Equipment

and Field 13.91 59,13,362

45,990

59,59,352 9,67,446 6,91,176

16,58,622 49,45,915 43,00,729

Installations

Furniture 18.10

2,83,539

49,920

3,33,459 70,142 44,873

1,15,015 2,13,397 2,18,444

TOTAL 67,09,125 2,94,619 70,03,744 13,24,315

8,60,696

21,85,011

53,84,810 48,18,733

P .Year

56,87,533.25 10,21,592.00 67,09,125.00

3,92,586.00

9,31,729 13,24,315 52,94,946.70 53,84,809.98

Note 6

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