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Transcript of Bharat Petroleum Corporation Limite1
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CHAPTER-1
INTRODUCTION
A systematic examination of financial or accounting records by a specialized inspecto
called an auditor, to verify their accuracy and truthfulness. A hearing during which
financial data are investigated for purposes of authentication.
The Internal Revenue Service(IRS) conducts two types of audits, called examination of
taxpayer returns, and they are typically conducted using one of two types of procedure
The most common auditing procedure involves correspondence between the service an
the taxpayer or interviews with the taxpayer in a local IRS office. A less common metho
involves field audits whereby IRS officials conduct the audit at the taxpayer's home o
place of business. Treas. Reg. 601.105(b)(1). The service determines which audi
procedure should be followed in a particular case. During an audit, an IRS official ma
question the taxpayer about a particular transaction or transactions that appear on thtaxpayer's return or may conduct a thorough investigation of the taxpayer's entire ta
return.
Although many people fear audits by the IRS, the percentage of returns examined by th
IRS is relatively low. For example, of 108,034,700 returns filed by taxpayers in 1997, th
IRS examined 1,662,641, or about 1.5 percent of the total number of returns. Despite thilow number, several stories surfaced in the 1980s and 1990s regarding abuses by IR
officials, many of which occurred during the audit process. Congress responded by
enacting two "Taxpayer Bill of Rights," first in 1989 and again in 1996. The second ac
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Department perform such duties and functions as are imposed on or undertaken by th
CAG under the provisions of the Constitution of India, or of any law made by Parliamen
Major auditorial functions of Pr.Accountant General (Civil Audit)
1. Audit of expenditure conducted under Section 13 of the Act, includes
Audit against provision of funds
This audit is aimed at ascertaining whether the moneys shown in the Accounts as spen
were legally available for and applicable to the service or purpose to which they had beeapplied or charged.
Regularity Audit
The objective of this audit is to see whether the expenditure conforms to the authority
which governs it.
Propriety Audit
Propriety Audit is directed towards examining the propriety of executive action beyon
the formality of expenditure to its wisdom, faithfulness and economy.
Efficiency-cum-performance or value for money Audit
It is a comprehensive appraisal of the progress and efficiency of the execution o
development and other programmes and schemes wherein an assessment is made as t
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whether these are executed economically and whether they are producing the result
expected of them.
Systems Audit
The concept of the Systems Audit is that if an an in-depth analysis of the mechanics o
the system reveals that it is designed with appropriate controls, checks and balances t
safeguard errors, frauds, etc. Audit can reasonably assume without the necessity of
detailed examination of the individual transactions, that the results produced by th
system would be fairly accurate.
2. Audit of Grants and Loans to various Bodies and Authorities under
Sections 14 and 15 of the Act
This Audit is undertaken on the accounts of authorities and bodies receiving financia
assistance in the form of grants and or loans from Government of India or a State o
Union Territory, subject to certain conditions specified in those sections.
3. Audit under Section 20
This section deals with audit of bodies or authorities which have not been entrusted to th
CAG by or under any law made by Parliament, he shall, if requested so to do by the
President or the Governor of a State or the Administrator of a Union territory having
Legislative Assembly, as the case may be, undertake the audit of the accounts of such
body or authority on such terms and conditions as may be agreed upon between him an
the concerned Government.
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CHAPTER-2
RESEARCH METHODOLOGY
Audit Objectives, Scope, Methodology and Approach
Audit Objectives and Scope
The objective of this audit was to conduct a thorough program audit on all aspects relate
to the Western Diversification Program life cycle. As such, the auditors examined key
internal processes and controls as well as compliance to the Financial Administratio
Act, WDP Terms and Conditions, and Treasury Board Policies with respect to:
Program Design - Review program Terms and Conditions, financial and
performance reporting at the program level, review and document approval
authorities, as well as controls and processes.
Program Operations - Review controls required to ensure due diligence;
review and approve applications in a complete and appropriate manner and
provide persuasive assessments based on relevant documentation to suppor
decisions to approve assistance. Review controls required to ensure responsible
fund management, and to ensure that resources are used efficiently and that
payments and repayments occur in a timely manner.
Review and Evaluation - Review findings of past audit and evaluation
reports and assess the status of actions taken as a result of past studies.
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The scope of the audit included an examination of all activities related to WDP and it
sub-components, including the management control framework in place at departmenta
headquarters and at the four regional offices. The Liaison Office in Ottawa was exclude
from the scope of this audit as it is not involved in the direct delivery of the WDP.
Audit Methodology and Approach
In accordance with the audit objectives and the Government of Canada Internal Audi
Standards, the audit was carried out in three phases: the planning phase, the conduc
phase, and the reporting phase.
During the planning phase, the auditors proceeded with a thorough review of document
provided by the department, and of the Treasury Board Secretariat of Canada policies t
gain an understanding of the overall legislative and policy framework, as well as th
processes relevant to the audit scope. Preliminary interviews were conducted with
departmental corporate and regional personnel to gain greater knowledge of managemencontrols and processes in place for the WDP, and to identify key risks associated with th
delivery of the program.
The purpose of the planning phase was to develop a Risk-Based Audit Program tha
provides a basis for the orderly, efficient, and cost effective conduct of the audit as wel
as a criteria base for assessment.
During the conduct phase, the audit team visited, as per the scope of the audit,
headquarters in Edmonton, and the four regional offices. From these visits, the audit team
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selected documents; conducted interviews, performed project file reviews, and debriefe
management on preliminary findings.
Findings for each line of enquiry were summarized and referenced on fact sheets. Factsheets were prepared for each region and for headquarters and then grouped to reflec
audit findings at the program level.
Key Audit Risks
The audit program was designed to test management's controls that have been develope
to mitigate the following key risks associated with the Western Diversification Program:
The WDP authorities are not renewed on time and expire;
Inadequate due diligence is conducted on projects;
There is a lack of clarity over eligibility criteria and assessment against the
criteria;
Ineligible expenses are funded;
Non compliance to Treasury Board policies or the Financial Administration Act
and
Non compliance with the Treasury Board authorities for the WDP.
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CHAPTER-3
PROFILE OF THE COMPANY
Bharat Petroleum Corporation Limited
Birth of the Company
Bharat Petroleum Corporation Limited forms a new chapter in the history of Indian
industry. Petroleum (derived from Latin Petra - rock and oleum - oil) first came up in
wells drilled for salt. People found it useful as illuminating oil and the demand for i
steadily increased. Samuel Kier, a Pittsburgh druggist, had bottled and marketed
Petroleum as a medicinal cure. To market a deodorised variant, the company had
designed the first primitive refinery in 1852, which was a huge improvised kettle
connected to a metal tank. 'Colonel' Edwin Drake and 'Uncle' Billy Smith drilled a wel
with the specific objective of finding oil, and on 27th August 1859, they 'struck oil' a
Titusvale, in North Western Pennsylvania, USA, at a depth of 69.5 ft.
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The 1860's saw vast industrial development. A lot of petroleum refineries also came up
An important player in the South Asian market then was the Burmah Oil Company
Though incorporated in Scotland in the year 1886, the company grew out of th
enterprises of the Rangoon Oil Company, which had been formed in the year 1871 t
refine crude oil produced from primitive hand dug wells in Upper Burma. The search fo
oil in India began in the year 1886, when Mr. Goodenough of McKillop Stewar
Company drilled a well near Jaypore in upper Assam and struck oil. In 1889, the Assam
Railway and Trading Company (ARTC) struck oil at Digboi marking the beginning of o
production in India.
While discoveries were made and industries had been expanded, John D Rockefelle
together with his business associates acquired control over numerous refineries an
pipelines to later form the giant Standard Oil Trust. In 1928, Asiatic Petroleum (India
joined hands with Burmah Oil Company - an active producer, refiner and distributor o
petroleum products, particularly in Indian and Burmese markets. This alliance had led t
the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited
A pioneer in more ways than one, Burmah Shell began its operations with import an
marketing of Kerosene. This was imported in bulk and transported in 4 gallon and
gallon tins through rail, road and country craft all over India. The company took up th
challenge of reaching out to the people even in the remote villages to ensure every hom
had its supply of kerosene. The development and promotion of the most efficien
kerosene-burning appliances for lighting and cooking was an important part of kerosen
selling activity.
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With motor cars, came canned Petrol, followed by service stations. In the 1930's, retai
sales points were built with driveways set back from the road; service stations began to
appear and became accepted as a part of road development. After the war Burmah She
was established in an efficient and up-to-date service and filling stations to give the
customers the highest possible standard of service facilities.
On 15th October 1932, when civil aviation arrived in India, the company had the honou
of fuelling J.R.D. Tata's historic solo flight in a single engined de Havillian Puss Moth
from Karachi to Bombay (Juhu) via Ahmedabad. Thirty years later, i.e. in 1962, BurmaShell again had the privilege to fuel JRD Tata's re-enactment of the original flight
Burmah Shell also fuelled flying boats, which carried air-mail at slightly higher rates tha
sea transport, at several locations.
Shaping the Future
The core strength of Bharat Petroleum Corporation Limited has always been the arden
pursuit of qualitative excellence for maximisation of customer satisfaction. Thus Bhara
Petroleum, the erstwhile Burmah Shell, has today become one of the most formidabl
names in the petroleum industry. Bharat Petroleum produces a diverse range of products
from petrochemicals and solvents to aircraft fuel and speciality lubricants and market
them through its wide network of Petrol Stations, Kerosene Dealers, LPG DistributorsLube Shoppes, besides supplying fuel directly to hundreds of industries, and severa
international and domestic airlines.
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Dynamic growth post nationalisation and also following nationalisation in 1976, Bhara
Petroleum changed gears and embarked upon a rapid growth path. Turnover, profitabilit
and financial reserves grew by leaps and bounds. Massive expansion and modernisatio
provided a tremendous boost to the company's performance. Large-scale recruitment an
training became critically important to meet the demands of expansion. A transforme
Organisation emerged and the opening up of the Indian economy in the nineties brough
with it more competition and challenges, kindled by the phased dismantling of th
Administered Pricing Mechanism (APM) and emergence of additional capacities in th
region in refining and marketing.
In 1996, Bharat Petroleum went through a process of visioning, involving people at a
levels, which evolved a shared vision and a set of shared values. Based on this, th
company restructured itself, in a proactive move to adapt to the emerging competitiv
scenario. The function-based structure was carefully dismantled and replaced with
process-based one. This made the company more responsive to its customer needs
Bharat Petroleum realises that, in the long run, success can only come with a tota
reorientation and change in approach with the customer as the focal point. Today, Bhara
Petroleum is restructured into a Corporate Centre, Strategic Business Units (SBUs) an
Shared Services and Entities. The organisational design comprises of five customer
facing SBUs, viz. Aviation, Industrial and Commercial, LPG, Lubricants and Retail and
one asset based SBU, viz. Refinery, is based on the philosophy of greater customer focus
The Planned Approach: Increasing globalisation, new products and services, and
innovative marketing have resulted in a very market savvy consumer. The production
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based success philosophy of marketers is now replaced by a customer-oriented
philosophy. Bharat Petroleum has taken cognisance of this particular situation well i
time and has been taking radical steps to keep itself attuned to the changing times
realising that the future belongs to those who listen and adapt to their customers
Strategy Development: the organization recognises that all strategic initiatives mus
conform to the overall vision of the Corporation and mostly to improve the economi
value. The Strategy Development effort at the corporate level had achieved better focu
in the new organisational structure, besides facilitating the SBUs in developing theirespective strategies that lead to an integrated Corporate Strategy. A Business Plannin
process has been put in place that not only provides opportunities for the SBU's to pursu
their visionary goals in consonance with the Corporate Vision, but also continuousl
monitors trends and identifies strategic opportunities for the Corporation.
Brand Management: In the highly competitive scenario, it has become very much
imperative to own dominant brands. The Brand Management team at Bharat Petroleum
endeavours to build and manage a strong brand image reflecting Bharat Petroleum's cor
values of being 'INCARE', viz. INnovative, CAring and REliable. Emphasis had bee
laid on continuously understanding customer behaviour, tracking their changing need
and expectations, and meeting these needs in the most cost-effective manner.
Research and Development : Bharat Petroleum is making distinct efforts towards most o
the Research and Development. Besides the R and D facilities at the Refinery areas an
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the Product Application Development Centre in Sewree in Mumbai, a new state-of-the
art R and D Centre is set up nearby Delhi. The R and D Centre is organised around thre
core groups - Process and Technology Development, Product Application Developmen
and Environmental Engineering.
Human Resources
Over the years, Bharat Petroleum continues to
meet the challenges of the rapidly changing
environment, leading to changes in the marketing
of products and services. In all these changes,
only one factor has remained constant and has
been the source of Bharat Petroleum's strength
and inspiration for any future innovations -
Bharat Petroleum's People. The feeling of
ownership has facilitated all employees tounderstand the complexity of the market and
needs of the customers, and respond to these
needs with innovative initiatives and offerings.
Awards
Bharat Petroleum was applauded with two prestigious Communication Awards at th
Golden Jubilee function of the Annual Association of Business Communicators of Indi
(ABCI) Awards Nite held at the Taj Mahal Hotel, Mumbai on 11th November 2010
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Every year, ABCI recognizes and rewards leading corporates for their excellent
contribution in the field of Business Communication. In fact, it is a mark of prestige to
get an ABCI Award.
BPCL won the Silver Award for its Inhouse Publication, Petro Plus and the Bronze
Award for its Online Web Campaign. BPCL shined at Petrotech 02 Nov 2010 intralink
Bharat Petroleum was awarded the 1st position under the Best Display in Raw Space
category during a spectacular awards ceremony at Petrotech-2010 exhibition at Praga
Maidan, New Delhi.Its website www.bharatpetroleum.in bagged the first prize in the category Most user
friendly website (editors choice) in the India eGov 2.0 Awards 2010. The magazine
eGov is Asia s first and only print -cum-online magazine which is on e-Governance.
BPCL is among the Top 10 Valuable Brands in India. A brand led business design is a
necessity to deliver on the business full potential. With a customer centric approach the
organization has over the years passionately nurtured Brands and this has resulted in th
company enjoying a good status in the Corporate world.
Bharat Petroleum Corporation Limited (BPCL) is an Indian state-controlledoil and gas
company headquartered inMumbai, Maharashtra. BPCL has been ranked 229th in the
Fortune Global 500rankings of the world's biggest corporations for the year 2013.
http://en.wikipedia.org/wiki/Oilhttp://en.wikipedia.org/wiki/Gashttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Gashttp://en.wikipedia.org/wiki/Oil -
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Company History
Bharat Petroleum Corporation ( BPCL) was established in 1952. It is one of the leadin
company in the petroleum sector in India.The 1860s saw vast industrial development. A lot of petroleum refineries als
came up. An important player in the South Asian market then was the Burmah Oi
Company. Though incorporated in Scotland in 1886, the company grew out of th
enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine crud
oil produced from primitive hand dug wells in Upper Burma. The search for oil in Indi
began in 1886, when Mr. Goodenough of McKillop Stewart Company drilled a well nea
Jaypore in upper Assam and struck oil. In 1889, the Assam Railway and Trading
Company (ARTC) struck oil at Digboi marking the beginning of oil production in India.
On 24th January 1976, the Burmah Shell Group of Companies was taken over by th
Government of India to form Bharat Refineries Limited. On 1st August 1977, it wa
renamed Bharat Petroleum Corporation Limited. It was also the first refinery to proces
newly found indigenous crude (Bombay High), in the country.
In 1889 during vast industrial development, an important player in the South Asia
market was theBurmah Oil Company. Though incorporated in Scotland in 1886, the
company grew out of the enterprises of the Chef Rohit Oil Company, which had bee
formed in 1871 to refine crude oil produced from primitive hand dug wells in Uppe
Burma.
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In 1928, Asiatic Petroleum Company(India) started cooperation with Burma oil
company. This alliance led to the formation of Burmah-Shell Oil Storage and
Distributing Company of India Limited. Burmah Shell began its operations with impor
and marketing of Kerosene.
On 24 January 1976, the Burmah Shell was taken over by the Government of India t
form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum
Corporation Limited. It was also the first refinery to process newly found indigenou
crude Bombay High.
In 2003, following a petition by theCentre for Public Interest Litigation, the Supreme
Court restrained the Central government from privatizingHindustan Petroleumand
Bharat Petroleum without the approval of Parliament.[3] As counsel for the CPIL,
Rajinder Sacharand Prashant Bhushansaid that the only way to disinvest in the
companies would be to repeal or amend the Acts by which they were nationalized in th
1970s.
Business area:
BPCL is into exploration, production and retailing of petroleum and petrol related
products.The retail busines unit of BPCL is into marketing of petrol, diesel and kerosen
.It has network of 6553 retail outlets and 1007 kerosene dealers and is partnered with bifood chain companies like McDonald?s, Pizza Hut, Caf?? Coffee Day
Subway, Nirulas , etc.
http://en.wikipedia.org/wiki/Asiatic_Petroleum_Companyhttp://en.wikipedia.org/wiki/Bombay_Highhttp://en.wikipedia.org/wiki/Centre_for_Public_Interest_Litigationhttp://en.wikipedia.org/wiki/Hindustan_Petroleumhttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-Rautray20110304-3http://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-Rautray20110304-3http://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-Rautray20110304-3http://en.wikipedia.org/wiki/Rajinder_Sacharhttp://en.wikipedia.org/wiki/Prashant_Bhushanhttp://en.wikipedia.org/wiki/Prashant_Bhushanhttp://en.wikipedia.org/wiki/Rajinder_Sacharhttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-Rautray20110304-3http://en.wikipedia.org/wiki/Hindustan_Petroleumhttp://en.wikipedia.org/wiki/Centre_for_Public_Interest_Litigationhttp://en.wikipedia.org/wiki/Bombay_Highhttp://en.wikipedia.org/wiki/Asiatic_Petroleum_Company -
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It also offers full range of automotive engine, gear oils, transmission oils, speciality oil
and greases .It caters to around 8000 industrial customers across India.It also provid
Aviation Turbine fuel (ATF) to its airline customers.
Its LPG business unit ??Bharatgas?? has presence in 25 million
households with 2137 LPG distributors spread across the country.
BPCL has two refineries at Mumbai and Kochi with a capacity of 12 Million Metri
Tonnes Per Annum (MMTPA) and 7.5 MMTPA for refining crude oil. Its subsidiary at
Numaligarh has capacity of 3 MMTPA.
BPCL is one of the supplier of naptha in Andhra Pradesh has committed to AP Transco t
supply sufficient quantities of naptha for operation of its four power station.
BPCL has launched a GPS technology for tracking vehicles for its 5,200 tanker truck
fleet.This system will help the company track the trucks for better logistic efficiency.Thi
will result in prevention of pilferages and fuel adulteration.
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CHAPETR-4
AUDIT REPORT OF BHARAT PETROLEUM
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BHARAT
PETROLEUM CORPORATION LIMITED
Report on the Financial Statements
We have audited the accompanyingFinancial Statements of Bharat Petroleum
Corporation Limited ("the Corporation"), which comprise the Balance Sheet as at Marc
31, 2014, the Statement of Profit and Loss and Cash Flow Statement for the year the
ended and a summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the FinanciaL Statements
The Management is responsible for the preparation of these Financial Statements tha
give a true and fair view of the financial position, financial performance and cash flow
of the Corporation in accordance with the Accounting Standards referred to in sub
section (3C) of Section 211 of the Companies Act, 1956 ("the Act") read with the
General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affair
in respect of Section 133 of the Companies Act, 2013. This responsibility includes th
design, implementation and maintenance of internal control relevant to the preparatio
and presentation of the Financial Statements that give a true and fair view and are fre
from material misstatement, whether due to fraud or error.
http://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/reports-auditor-reporthttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/reports-auditor-reporthttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/reports-auditor-reporthttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/reports-auditor-reporthttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/reports-auditor-reporthttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/reports-auditor-report -
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Auditors' Responsibility
Our responsibility is to express an opinion on these Financial Statements based on ou
audit. We conducted our audit in accordance with the Standards on Auditing issued bthe Institute of Chartered Accountants of India. Those Standards require that we compl
with ethical requirements and plan and perform the audit to obtain reasonable assuranc
about whether the Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts an
disclosures in the Financial Statements. The procedures selected depend on the auditor judgment, including the assessment of the risks of material misstatement of the Financia
Statements, whether due to fraud or error. In making those risk assessments, the audito
considers internal control relevant to the Corporation's preparation and fair presentatio
of the Financial Statements in order to design audit procedures that are appropriate in th
circumstances, but not for the purpose of expressing an opinion on the effectiveness o
the Corporation's internal control. An audit also includes evaluating the appropriatenes
of accounting policies used and the reasonableness of the accounting estimates made b
Management, as well as evaluating the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
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Opinion
In our opinion and to the best of our information and according to the explanations give
to us, the Financial Statements give the information required by the Act in the manner srequired and give a true and fair view in conformity with the accounting principle
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Corporation as at March
31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on tha
date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on tha
date.
Emphasis of matter:
We draw attention to Note 49(c) to the financial statements regarding recognition o
marked to market loss of Rs. 324.35 crore on swap contracts. However, the marked t
market gain of Rs. 521.14 crore to cover the risk on above transaction is not recognise
for reasons stated in the Note. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2003 ("the Order") issued by
the Central Government of India in terms of sub section (4A) of Section 227 of the Act,
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we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 o
the Order.
2. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the best of ou
knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by th
Corporation so far as appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt wit
by this Report are in agreement with the books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards referred to in sub section (3C) of
Section 211 of the Act read with the General Circular 15/2013 dated September 13, 201of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act
2013, except some disclosures as required under Accounting Standard 19, 'Accountin
for Leases' are not made (Refer Note 43 of attached financial statements);
e. In view of exemption given vide notification no. G.S.R. 829 (E) dated 21st October
2003 issued by Ministry of Corporate Affairs, provisions of clause (g) of sub section (1)
of Section 274 of the Act are not applicable to the Corporation.
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ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirement
in the Independent Auditors' Report of even date to the members of Bharat PetroleumCorporation Limited ("the Corporation") on the financial statements for the year ende
March 31, 2014)
(i) (a) The Corporation has maintained proper records showing full particulars, includin
quantitative details and situation of fixed assets.
(b) As per information and explanations given to us, physical verification of fixed asset
(except as stated below) has been carried out by the Management during the year i
accordance with the phased programme of verification of all assets over three year
which, in our opinion, is reasonable having regard to the size of the Corporation and th
nature of its assets. As informed, no material discrepancies were noticed on such
verification. LPG Cylinders and pressure regulators with customers are not physicallyverified by the Management.
(c) In our opinion and according to the information and explanations given to us,
substantial part of fixed assets has not been disposed off by the Corporation during th
year.
(ii) (a) The inventory (excluding stocks with third parties and inventories in transit) ha
been physically verified by the Management during the year. In respect of inventory lyin
with third parties, these have substantially been confirmed by them. In our opinion, th
frequency of verification is reasonable.
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(b) The procedures of physical verification of inventory followed by the Management ar
reasonable and adequate in relation to the size of the Corporation and the nature of it
business.
(c) The Corporation is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification carried out at the end of the year.
(iii) (a) As informed, the Corporation has not granted any loans, secured or unsecured t
companies, firms or other parties covered in the register maintained under Section 301 o
the Companies Act, 1956 ("the Act"). Accordingly, the provisions stated in paragraph (iii)(b),(c) and (d) of the order are not applicable.
(b) As informed, the Corporation has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained under Section 301 o
the Act. Accordingly, the provisions stated in paragraph 4 (iii)(f)and (g) of the order ar
not applicable.
(iv) In our opinion and according to the information and explanations given to us, ther
exists generally an adequate internal control system commensurate with the size of th
Corporation and the nature of its business with regard to purchase of inventory, fixed
assets and with regard to the sale of goods and services. During the course of our audit
we have not observed any continuing failure to correct weakness in internal contro
system of the Corporation.
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(v) According to the information and explanations given to us, we are of the opinion tha
there have been no contracts or arrangements referred to in Section 301 of the Act tha
need to be entered into the register maintained under said Section.
(vi) In our opinion and according to the information and explanations given to us, th
Corporation has not accepted any deposits from the public within the meaning o
Sections 58A and 58AA of the Act and the rules framed there under.
(vii) In our opinion, the Corporation has an internal audit system commensurate with th
size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the Corporation i
respect of products where, pursuant to the Rules made by the Central Government o
India, the maintenance of cost records has been prescribed under clause (d) of sub
section (1) of Section 209 of the Act and we are of the opinion that prima facie, th
prescribed accounts and records have been made and maintained.
(ix) (a) The Corporation is generally regular in depositing with appropriate authoritie
undisputed statutory dues including provident fund, investor education and protectio
fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amount
payable in respect of provident fund, investor education and protection fund, employee
state insurance, income tax, wealth tax, service tax, sales tax, customs duty, excise
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duty, cess and other undisputed statutory dues were outstanding, at the year end, for
period of more than six months from the date they became payable.
(c) According to the records of the Corporation, the dues outstanding of income tax,sales tax, wealth tax, service tax, customs duty, excise duty and cess on account of any
dispute, are as per Annexure A.
(x) The Corporation has no accumulated losses at the end of the financial year and it ha
not incurred cash losses in the current and immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given to us, th
Corporation has not defaulted in repayment of dues to a financial institution, bank o
debenture holders.
(xii) According to the information and explanations given to us and based on the
documents and records produced to us, the Corporation has not granted loans & advance
on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Corporation is not a chit fund or a nidhi / mutual benefit fund
society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Companies
(Auditor's Report) Order, 2003 (as amended) are not applicable to the Corporation.
(xiv) In our opinion, the Corporation is not dealing in or trading in shares, securities
debentures and other investments. Accordingly, the provisions of clause (xiv) of
paragraph 4 of the Companies (Auditor's Report) Order, 2003 (as amended) are no
applicable to the Corporation.
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(xv) In our opinion and according to the information and explanations given to us, th
terms and conditions of the guarantees given by the Corporation, for loans taken by
subsidiary companies and others from banks or financial institutions during the year, ar
not prejudicial to the interest of the Corporation.
(xvi) In our opinion, the term loans have been applied for the purpose for which the loan
were raised.
(xvii) According to the information and explanations given to us and on an overal
examination of the Balance Sheet of the Corporation, we report that no funds raised oshort term basis have been used for long term investment.
(xviii) According to the information and explanation given to us, the Corporation has no
made any preferential allotment of shares to parties and companies covered in the
Register maintained under Section 301 of the Act.
(xix) According to the information and explanations given to us, no debentures have bee
issued by the Corporation during the year.
(xx) The Corporation has not raised money by way of public issue during the year.
(xxi) During the course of our examination of the books and records of the Corporation
carried out in accordance with the generally accepted auditing practices in India, an
according to the information and explanations given to us, we have neither come acros
any instance of fraud on or by the Corporation, noticed or reported during the year
except for following instances of fraud identified by the Management :
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a) The incident of an irregularity of Rs. 0.60 crore by a Corporation Owned Corporatio
Operated retail outlet operator. The amount has since been recovered.
b) The incident of an irregularity of Rs. 0.15 crore relating to the Retail Territory by aofficer. The amount has since been recovered.
c) The fraud of Rs. 0.01 crore in respect of procurement of services committed by an
officer at a Retail Territory. Disciplinary action has been taken against the officer
concerned.
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PROFIT AND LOSS OF BHARAT PETROLEUM CORPORATION
LIMITED
ParameterMAR'14
( Cr.)
MAR'13
( Cr.)
Change
%
Gross Sales 2,71,037.34 2,50,649.27 8.13%
Less :Inter divisional transfers 0.00 0.00 0.00%
Less: Sales Returns 0.00 0.00 0.00%
Less: Excise 10,976.82 10,533.51 4.21% Net Sales 2,60,060.53 2,40,115.75 8.31%
EXPENDITURE:
Increase/Decrease in Stock -1,860.83 -1,508.37-
23.37%
Raw Materials Consumed 2,40,095.30 2,23,309.09 7.52%
Power & Fuel Cost 1,196.89 904.92 32.26%
Employee Cost 2,896.35 2,768.87 4.60%
Other Manufacturing Expenses 5,706.93 4,839.16 17.93%
General and Administration Expenses 1,689.13 1,751.07 -3.54%
Selling and Distribution Expenses 0.00 0.00 0.00%
Miscellaneous Expenses 2,250.54 2,108.13 6.76%Expenses Capitalised 0.00 0.00 0.00%
Total Expenditure 2,51,974.31 2,34,172.88 7.60%
PBIDT (Excl OI) 8,086.22 5,942.88 36.07%
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Other Income 1,468.66 1,844.15-
20.36%
Operating Profit 9,554.88 7,787.03 22.70%
Interest 1,359.08 1,825.24-
25.54%
PBDT 8,195.80 5,961.79 37.47%
Depreciation 2,246.82 1,926.10 16.65%
Profit Before Taxation & Exceptional Items 5,948.98 4,035.69 47.41%
Exceptional Income / Expenses 0.00 0.00 0.00%Profit Before Tax 5,948.98 4,035.69 47.41%
Provision for Tax 1,888.10 1,392.79 35.56%
PAT 4,060.88 2,642.90 53.65%
Extraordinary Items 0.00 0.00 0.00%
Adj to Profit After Tax 0.00 0.00 0.00%
Profit Balance B/F 500.00 500.00 0.00%
Appropriations 4,560.88 3,142.90 45.12%
Equity Dividend (%) 170.00 110.00 54.55%
Earnings Per Share (in) 56.16 36.55 53.65%
Book Value (in) 267.72 229.68 16.57%
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BALANCESHEET OF BHARAT PETROLEUM LIMITED
ParameterMAR'14
( Cr.)
MAR'13
( Cr.)
YoY
%ChangeEQUITY AND LIABILITIES
Share Capital 723.08 723.08 0.00%
Share Warrants & Outstandings
Total Reserves 18,735.68 15,910.94 17.75%
Shareholder's Funds 19,458.76 16,634.02 16.98%
Long-Term Borrowings 0.00 0.00 0.00%
Secured Loans 700.00 700.00 0.00%
Unsecured Loans 11,108.36 4,808.37 131.02%
Deferred Tax Assets / Liabilities 1,360.90 1,655.72 -17.81%
Other Long Term Liabilities 60.74 60.82 -0.13%
Long Term Trade Payables 0.00 0.00 0.00%Long Term Provisions 1,157.31 1,092.01 5.98%
Total Non-Current Liabilities 14,387.31 8,316.92 72.99%
Current Liabilities
Trade Payables 12,166.83 8,883.28 36.96%
Other Current Liabilities 15,562.22 13,417.59 15.98%
Short Term Borrowings 8,183.70 18,058.42 -54.68%
Short Term Provisions 2,668.59 1,661.30 60.63%
Total Current Liabilities 38,581.34 42,020.59 -8.18%
http://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financialshttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financialshttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financialshttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financialshttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financialshttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financialshttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financialshttp://profit.ndtv.com/stock/bharat-petroleum-corporation-ltd_bpcl/financials -
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Total Liabilities 72,427.41 66,971.53 8.15%
ASSETS
Non-Current Assets 0.00 0.00 0.00%
Gross Block 38,163.78 33,674.78 13.33%
Less: Accumulated Depreciation 19,124.27 16,984.37 12.60%
Less: Impairment of Assets 0.00 0.00 0.00%
Net Block 19,039.51 16,690.41 14.07%
Lease Adjustment A/c 0.00 0.00 0.00%
Capital Work in Progress 2,716.06 2,296.30 18.28%Intangible assets under development 0.00 2.53 -100.00%
Pre-operative Expenses pending 349.04 120.91 188.68%
Assets in transit 0.00 0.00 0.00%
Non Current Investments 7,238.10 6,942.10 4.26%
Long Term Loans & Advances 2,826.78 2,108.67 34.06%
Other Non Current Assets 505.81 404.33 25.10%
Total Non-Current Assets 32,675.30 28,565.25 14.39%
Current Assets Loans & Advances
Currents Investments 4,608.79 5,160.90 -10.70%
Inventories 19,071.13 16,690.37 14.26%
Sundry Debtors 4,080.16 4,025.13 1.37%
Cash and Bank 203.76 2,328.86 -91.25%
Other Current Assets 10,869.03 9,252.38 17.47%
Short Term Loans and Advances 819.03 921.95 -11.16%
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Total Current Assets 39,651.90 38,379.59 3.32%
Net Current Assets (Including Current Investments) 1,070.56 -3,641.00 -129.40%
Total Current Assets Excluding Current Investments 35,043.11 33,218.69 5.49%
Miscellaneous Expenses not written off 100.21 26.69 275.46%
Total Assets 72,427.41 66,971.53 8.15%
Contingent Liabilities 7,635.25 9,004.94 -15.21%
Total Debt 20,321.56 23,839.04 -14.76%
Book Value (in) 267.72 229.67 16.57%
Adjusted Book Value (in) 267.72 229.6716.57%
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CHAPTER-5
CONCLUSION
Some progress has been made to improve the management of government office
accommodation but a strategic whole-of-government approach recommended in our 200
report and planned under Works Reform in 2009 has not been fully implemented
Finance does not have a mandate to manage all government office accommodation an
there is still no comprehensive whole-of-government data. The total size, cost and densit
rates of government office space are not known. This lack of baseline information limitFinance s ability to plan for whole -of-government long term office accommodation and
makes it less likely that government will derive maximum benefit from the Works
Reform program. It also makes it difficult to demonstrate the achievement of strategi
objectives and outcomes or for us to offer any opinion on whether the management an
use of office accommodation is more efficient or cost effective than in 2006.
Finance has improved the management of the government office accommodation that i
within its remit. It has adopted a staged transition from a piecemeal to a master plannin
approach. Operationally, Finance has prioritised and successfully relocated around 5 00
staff in the CBD. In doing so it applied some of the principles set out in Works Reform t
the parts of government office accommodation that are centrally managed. It has
consolidated accommodation in the Perth CBD and CBD fringe into fewer buildings an
over 13 000m of space has been moved out of the Perth CBD and CBD fringe. Capita
investment of $163 million on fit outs, upgrades and changes to meet building cod
requirements were required. However, the result was improved office space usage and
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mitigated increases in the cost of leasing office accommodation estimated at $18.1
million a year.