EXECUTIVE SUMMARY

As per the university rule all students have to take the overview of all the department which are working in the organization very well. So first of all I took an overview of all the department. Then I have assigned totally three of the task. First to analyze the present situation of all retail outlets whichever in the Rajkot city. Secondly I have done one research on “customer satisfaction”. And at last I was telling to increase a sell In & Out stores which are establishes near outlet.

Company’s product then and then will sell increase when each and every dealer want to sell it at high level. So it is a very good and tough task to convey all the dealers about their hidden potential. What they are getting right now and what are the chances to get more from the road. So through the presentation I have conveyed to the dealer. Now in a competitive era what the consumers are demanding from company and what they are actually getting as a service from the company, it is a very important thing for the company. I visited at each of the retail outlet and take the feedback of the consumers through the questionnaire. Thus we can measure the satisfaction level of the consumers.

Bpcl provides many of the facilities to their consumers. Like air facility, wash room, ATMS, STD PCO, Coffee house, laundry, etc. In the same way company also provides the facility of In & out stores at each of the outlet. So now a day the selling in those stores were so much less as compared to other state in Gujarat. So I have to told that to increase the selling by introducing a new of the skims in those stores. But that task then and then can be possible when we can find the sponsors from the market. I move in the market so many of the days but unfortunately I can find only two of the sponsors. And from the help of these two sponsors only we are not able to introduce a new of the skim in the In & out stores.

But whatever I have done in these days that I have done pure heartily. And also my sir has also praised of my hard working and honesty. And also they guided me so well that’s why I can fulfill my assigned work.

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INDUSTRY PROFILE

At Independence, domestic oil production was 250,000 tones per annum. E & P was controlled by the NOCs, ONGC and OIL. 70s            Nearly 70% of the domestic requirement.  

            80s            Production declined, Steady increase in consumption.

            Today        Two NOCs meet about 35% of domestic requirement.

Petroleum Sector Reforms, 1990

    4th – 8th bidding between 1991-94. Indian companies permitted to bid.

    JV Exploration Program in 1995. 25% to 40% Participating Interest.

Foreign Companies Exploration in India since early 50s.

          Indo Stanvac Project- GOI and Standard Vacuum oil Company, West Bengal 

          Offshore, in early 50’s.

            Carlsbons Natomas for Bengal offshore in early 70’s.

          Shell for Kerala offshore and Chevronn- Texaco in Krishna-Godavery Offshore.   

Evolution of Oil & Gas Industry in India

 Indian E&P Companies Except HOEC, riding piggyback on the foreign companies.Reliance Petroleum Ltd. joined with ONGC in bidding for exploration and development ventures in India and abroad. Downstream companies IOC, GAIL entered upstream with ONGC and OIL.

Opening of the Oil/Gas Fields for Development by Private Companies The Indian oil/gas fields discovered by the two NOCs were first offered in 1992 under the First Offer. The second such offer was made in 1993.   

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Development of fields

  Cost intensive venture. Contracts have upfront payments to be made to the NOCs for past costs as well as in the form of signature bonds. Companies are also required to make production bonus payments.74 Exploration Contracts and 28 Development Contracts are in operation. 

  Major Players in India 

ONGC

Public sector company; Contributes 77% of India’s crude oil production; Revenue (2006): $ 10.5 billion; Employees: 41000

ONGC's setbacks in acquiring major oil resources and the government's order to help shoulder the burden of subsidized fuels earlier this year, pushed the country's biggest refiners into the red

The 50-year-old firm has acquired interests in 16 overseas projects since it started looking abroad in 2001.

For three years in a row, the firm has failed to replace the reserves it produced.

ONGC must boost its reserve-to-production ratio (22 years) by improving its drilling technology and management practices. In some on land areas the ratio is 57 years.

ONGC lost a major offshore platform at Bombay High, reducing the company's output by 123,000 barrels per day (bpd). It has since restored half that production.

Oil Minister Mr. Ayer has pushed for Indian and Chinese firms to cooperate not compete, for overseas assets, but his efforts appear to have met with little interest in Beijing.

IOCL India's largest commercial enterprise; sales turnover of US $36.537 billion Indian Oil Technologies Ltd.(a wholly owned subsidiary company ) is the

19th largest Petroleum company in the world World-class R&D Centre has developed over 2,100 formulations of SERVO

brand lubricants and greases.

 BPCL 3rd largest oil company in India; Owned by the Government of India;

Revenue (2005): $17.613 billion; Employees: 12400

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In 1976, the Burma Shell Group of Companies was taken over to form Bharat Refineries Limited. Renamed Bharat Petroleum Corporation Limited in 1977

First refinery to process newly found indigenous crude (Bombay High), in the country

 Global Oil Prices 

From the foundation of the Organization of Petroleum Exporting Countries in 1960 through 1972 member countries experienced steady decline in the purchasing power of a barrel of oil. In March 1971, the balance of power shifted.

Arab Oil Embargo 1973: Prices increased 400 percent in six short months. Events in Iran and Iraq led to another round of crude oil price increases in

1979 and 1980 Prices spiraled in 2004 and 2005 as the spare capacity to produce oil has been

less than one million barrels per day which cannot cover an interruption of supply from almost any OPEC producer. In a world that consumes over 80 million barrels per day of Petroleum products, that adds a significant risk premium

Fear that oil supplies might be reduced because of turbulence in the Middle East and Venezuela

Other reasons: US dollar’s slump; Peak Oil Theory and Speculation; Ever-increasing demand, as witnessed by oil shortages in Africa, India, and China.

Today: Oil prices into a downward spiral of more than 20 percent since the middle of July. The price of oil fell 4 percent just this week.

Reasons: Light hurricane season this summer, the cease-fire between Israel and Hezbollah and the fact that UN has not imposed sanctions on Iran.

 How is India Combating Price Hike?   The oil price is increased, Revenue loss of Rs 73,512 crore in 2006-07 fiscal. India's ONGC Videsh, Spanish Oil Company Repsol YPF and Norway’s

Norsk Hydro to explore six offshore blocks in Cuba. India's ONGC Videsh Ltd. and GAIL together hold 30 per cent stake in A-1

field operated by Daewoo of South Korea. Myanmar agreed to sell gas from offshore A-1 field to India through a land route bypassing Bangladesh.

India is considering joining a Central Asian gas pipeline that originates from Turkmenistan.

China National Petroleum Corporation (CNPC) and India's ONGC jointly won a bid to acquire 37% of Petro-Canada's stake in Syrian oilfields for US$573 million.

India is seeking the revival of Iran-Pakistan-India pipeline deal which has currently reached a deadlock.

Reliance Petroleum Ltd is working on a new 29-million-tonne (5, 80,000 barrels-a-day) refinery which will be housed in a SEZ adjacent to the existing Jamnagar refinery of Reliance Industries.

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COMPANYCOMPANYOVERVIEWOVERVIEW

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6.) GENERAL INFORMATION

A.) HISTORY AND DEVLOPMENT

Early History - Dawn of a New Era

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 it steadily increased.

Samuel Kier, a Pittsburgh druggist, bottled and marketed Petroleum as medicinal cure. To market a deodorize variant, he 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 well with the specific objective of finding oil, and on 27th August 1859, they "struck oil" at Titus vale, in North Western Pennsylvania, USA, at a depth of 69.5 ft.

From Nothing to Gold

The 1860s 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 1886, the company grew out of the enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma.

The search for oil in India began in 1886, when Mr. Goodenough of McKillop Stewart 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 oil production in India.

While discoveries were made and industries expanded.

In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil Company - an active producer, refiner and distributor of petroleum products, particularly in Indian and Burmese markets. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited.

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The Pioneering Spirit - Burmah Shell Marketing

A pioneer in more ways than one, Burmah Shell began its operations with import and marketing of Kerosene. This was imported in bulk and transported in 4 gallon and 1 gallon tins through rail, road and country craft all over India.

The company took up the challenge of reaching out to the people even in the remote villages to ensure every home had its supply of kerosene. The development and promotion of efficient kerosene-burning appliances for lighting and cooking was an important part of kerosene selling activity.

With motor cars, came canned Petrol, followed by service stations. In the 1930s, retail 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 Shell established efficient and up-to-date service and filling stations to give the customers the highest possible standard of service facilities.

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On 15th October 1932, when civil aviation arrived in India, the company had the honour 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, Burmah Shell again had the privilege to fuel JRD Tata's re-enactment of the original flight. Burmah Shell also fuelled flying boats, which carried airmail at slightly higher rates than sea transport, at several locations.

As a true pioneer would, the company introduced LPG as a cooking fuel to the Indian home in the mid-1950s. And all along, it went beyond selling petroleum, to educate the customer. Besides selling Bitumen, the company pioneered desert road construction, training road engineers. It provided free technical services to industrial customers - big and small - and it became a part of the company's culture.

On Stream - The Burmah Shell Refinery

An agreement to build a modern refinery at Trombay, Bombay was signed between the Burmah Shell group of companies and the Government of India on 15th December 1951.

With this infrastructure, free India moved one step closer to self-reliance.

From Burmah Shell to Bharat Petroleum

On 24th January 1976, the Burmah Shell Group of Companies was taken over by the Government of India to form Bharat Refineries Limited. On 1st August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude (Bombay High), in the country.

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B.) The Journey

Shaping the Future:-

The core strength of Bharat Petroleum Corporation Limited has always been the ardent pursuit of qualitative excellence for maximisation of customer satisfaction. Thus Bharat Petroleum, the erstwhile Burmah Shell, has today become one of the most formidable names in the petroleum industry.

Bharat Petroleum produces a diverse range of products, from petrochemicals and solvents to aircraft fuel and speciality lubricants and markets them through its wide network of Petrol Stations, Kerosene Dealers, LPG Distributors, Lube Shoppes, besides supplying fuel directly to hundreds of industries, and several international and domestic airlines.

Dynamic Growth Post Nationalisation

Following nationalisation in 1976, Bharat Petroleum changed gears and embarked upon a rapid growth path. Turnover, profitability and financial reserves grew by leaps and bounds. Massive expansion and modernisation provided a tremendous boost to the company's performance. Large-scale recruitment and training became critically important to meet the demands of expansion.

The Winds of Change - A Transformed Organisation Emerges

Opening up of the Indian economy in the nineties brought with it more competition and challenges, kindled by the phased dismantling of the Administered Pricing Mechanism (APM) and emergence of additional capacities in the region in refining and marketing.

In 1996, Bharat Petroleum went through a process of visioning, involving people at all levels, which evolved a shared vision and a set of shared values. Based on this, the company restructured itself, in a proactive move to adapt to the emerging competitive scenario. The function-based structure was carefully dismantled and replaced with a 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 total reorientation and change in approach with the customer as the focal point. Today, Bharat Petroleum is restructured into a Corporate Centre, Strategic Business Units (SBUs) and Shared Services and Entities. The organisational design comprising of five customers facing SBUs, viz. Aviation, Industrial & Commercial, LPG, Lubricants and Retail and one asset based SBU, viz. Refinery, is based on the philosophy of greater customer focus.

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C.) GENERAL INFORMATION

(1) Name of the company : Bharat Petroleum Corporation limited

(2) Year of establishment : 24th January 1976

(3) Address of registered office :Bharat Bhavan 4 & 6 currimbhoy road Ballard estate Mumbai 400001

(4) Size of organization :Large scale unit

(5) Form of organization : public limited company

(6) Nature of industry :oil and crude industry

(7) Web site :www.bharatpetroleum.in

(8) Bankers :State bank of India Union bank of India

Corporation bank Bank of India State bank of Patiala Central bank of India Standard chartered bank ICICI bank HDFC bank Indian bank

(9) Subsidiary company : Unmilitary Refinery Limited (NRL)

(10) Joint venture companies : Bharat Shell Limited Petronet India Limited Petronet CI Limited Petronet CCK Limited Petronet LNG Limited Indraprastha Gas Limited Central UP Gas Limited Maharashtra Natural Gas Limited. VI e Trans Private Limited

(11) Quality assurance certificate : ISO 9001

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(12) Board of directors : Ashok Sinha (chair man ) S.A. Narayan (director HR) S.Radhakrishnan (director marketing) S.K. Joshi (director finance) R.K.Singh (director refinery) P.K.Sinha (joint secretary) Aditi S. Ray (economic advisor)

(13) Auditors : V.Sankar Aiyar and company

D) BPCL LOGO

In logo blue and yellow, currently in use at BPCL new retail outlets, are to be implemented in all visual elements of the corporate identity viz. logo, stationary, office signage, tank Lorries etc. in all locations by 30th June, 2007.

PHILOSOPHY: these new corporate colours mirror the following attributes:

Blue : Dynamic, Modern and Hi- tech.Yellow : Warmth, Care and Energy.White : Balanced and Fair.

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E.) . LIST OF THE HEAD DEPARTMENTS

Organization structure means how the unit its business. Not only this but also organization structure shows that who is responsible to whom? And who is accountable to whom?

The organization of BPCL is divided into following departments.

1) Production department

2) Management information department

3) Raw material department

4) Distributaries department

5) Distributaries department

6) Human resource department

7) Marketing department

8) Finance department

9) Retail outlet department

10) Research and development department

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F.) CORPORATE VISION

1) Make BPCL a great place to work.

2) Effective boundary management.

3) Fulfill social responsibility.

4) Apply the best technology.

5) Be an ethical company.

6) Strong and dynamic system.

7) Establish first class brand and corporate image.

8) Sound business performance and operational efficiency.

9) Have excellent customer caring and customer service.

10) To be the best.

11) Make people a source of our improvement

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CONTRIBUTION OF THE UNIT

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7.) Contribution of the unit:

CONTRIBUTION TO

A. CONTRIBUTION TO ECONOMY

This unit is very famous unit in India. In the oil product company complete with best research and development department with great performance. According to the members of BPCL, BPCL it self is the contribution to oil industry. BPCL’S all products play an important role in whole industry. Its own research department has found good product SPEED PETRO which is 17 times better than general petrol. This unit has completed 75 years of aviation service. This is the first unit which provides Aviation Turbine Fuel (ATF), which is produced and marketed by BPCL.

BPCL has not only nation al market but BPCL is associated with most of the international airlines operating through India including all the major domestic players, like air India, air deccan,, alliance air, Asian airlines, British airways, china airlines, gulf air, Indian air force, Japan airlines, jet airways.

ECONOMY SOCIETY

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B. CONTRIBUTION TO THE SOCIETY

i. INDUSTRIAL RELATIONS

The industrial relations have been peaceful and cordial throughout the year. Extensive communication on business and other related issues were sent to all the stakeholders i.e. management, employees and their associations / unions during the year.

ii. FULFILLMENT OF SOCIAL OBLIGATIONS

As a responsible corporate citizen, BPC accords significant importance to Corporate Social Responsibility (CSR) and takes it as one of the prime focus areas. Community Development Programmes were undertaken to bring all round development in adopted villages, consisting of economically and socially backward population and significant resources were allocated towards these activities.

Under the Component Plan, welfare activities were undertaken at 37 adopted villages spread over 13 states across the country. The main impetus of activities was given in the fields of health, education, infrastructure development and usage of non-conventional alternate energy sources.

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BPC is always at the forefront to stand by the side of people affected by natural disasters/ calamities and had contributed towards the relief of Jammu & Kashmir earthquake victims as well as rehabilitation of tsunami affected people in Tamil Nadu and Kerala.

BPC has been providing reservations and concessions for physically challenged persons in the recruitment process since 1981. The reservations were earlier provided for Group C and Group D posts. However, after the enactment of “The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995", the reservations stood extended to posts in Group A and Group B with effect from February 1996.

BPC identified positions in these groups which could be reserved for filling up by persons with disabilities. It is BPC’s endeavor to achieve the desired percentage for physically handicapped persons in identified posts during direct recruitment. BPC currently has 156 physically challenged persons employed in the Organization as at 31 st March 2006.

Various concessions are given to the physically challenged persons such as age relaxation of 5/10 years, besides giving them a sympathetic consideration during interviews; hearing aids are provided for the hearing-impaired persons and also relevant equipment required by orthopaedic handicapped persons; visually handicapped staff are provided with special “talking” computers; also, Income Tax Relief through salary as per Section 80U is given, provided the physically challenged person complies with the requirements ofIncome Tax rules.

Besides the above, as a corporate body, various initiatives have been undertaken as a part of community development, like Pulse Polio Immunisation Programme; setting up of a Thalessemia care unit at Sion Hospital and organising workshops for physically handicapped persons in association with the Social Welfare branch of Municipal.

iii. Corporation of Mumbai

1. Company’s philosophy on Code of Governance

BPC’s corporate philosophy on Corporate Governance has been to ensure fairness to the stakeholders through transparency, full disclosures, empowerment of employees and collective decision making.

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iv. Meeting Social Obligations

As energy corporate, BPCL feel that we may have a larger say in the course of many events in the coming decades. It is thus that BPCL finds it necessary and proceeds with utmost caution, when it comes to issues related with the environment.

The magnitude of the problem concerning this sensitive eco-balance is so massive that the best way forward for BPCL, as it sees ahead, for the above being achieved is using a two pronged approach of “executing environmental protection activities and sharing knowledge, with a view to educate the common man on this front.

The four reasons, believed to be the cause for treading cautiously in matters related to the environment are as follows.

Our moral responsibility towards the environment. Understanding of the need for an ecological balance The understanding of the interlankages of the web of life Inadequacy of Human Understanding of Environmental Process.

.The above four cover the entire canvass of concerns for the subject and BPCL’s contribution towards the same has also been oriented around its objective.

Like mentioned, BPCL’s corporate philosophy towards environment is also directed towards life and mankind. In other words, It would try and ensure that at least in its

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conscious actions, BPCL would not become party to any decisions which will have damaging consequences to this earth & the life on it.

BPCL, on the other hand would give its best in educating mankind, on the necessity of understanding the dynamics of the fragile eco-diversity and hope to seek contributions from each individual in maintaining the balance.

v. Implementation of the official language policy

The Official Language Committees function at the Corporate, Regional, Area and Location levels in order to promote the use of Hindi at work places. These committees review the progress made in Official Language Implementation. Hindi workshops were organized in the Regions and Refinery. The Parliamentary Committee inspected the Official Language Implementation at six of BPC’s locations during the period and expressed their appreciation for the efforts taken by BPC. The “Chairman’s Inter-Region Rajya-bhasha Rolling Trophy” has been instituted to create competition and awareness. Various competitions and cultural programmes were organized at locations during the Hindi fortnight celebrations from 14th – 28th September 200

vi. Citizens’ charter

Citizens Charter - a tool for ensuring transparency in communicating with customers and educating them about their rights, apart from various infrastructure / services being available for customers, is always in the forefront of all activities of BPC. The financial year was very eventful, particularly in respect of enhancing customer service levels. The Grievance Redressal Mechanism was also well taken care of, which is fully established and positioned at various consumer contact points. The Right to Information Act, 2005 has been implemented in BPC, effective 12.10.2005 in the true spirit of the Act. People across the organization are familiar with the Act and BPC has a unique single window concept of all replies under the Act.Various schemes, programmes and services to provide value addition to retail customers, pioneered by BPC, received good response and created a brand differentiation in the minds of customers. Various customer focused initiatives taken by different SBUs .

vii. Non-conventional energy initiatives

BPC has embarked upon various non-conventional energy initiatives. Towards this objective, BPC has an ambitious programme of generating power for its own consumption through windmills. Work on windmills of 5 MW capacity in the State of Karnataka will start shortly. There are plans to scale up the capacity gradually in a few other States also. BPC has also started Jatropha plantation at a few places in the country to enter the Bio-diesel value chain.

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A pilot project on end to end Bio-diesel production has been initiated in an area of around 1000 acres of land in UP. Although at a very nascent stage, BPC plans to enter the area of fuel cells in cooperation with BHEL and depending upon the commercial viability, the programme will be accelerated. Also, BPC is experimenting on the generation of solar power for part of our Retail Outlet requirements at a moderate cost, coupled with a solar-cum-wind power generator, which is being tested for its commercial prudence.

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PRODUCTIONDEPARTMENT

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8.) PRODUCTION DEPARTMENT

A.) Exploration and production of crude oil and gas

In continuation of its endeavor to consolidate its presence in the upstream oil and gas sector, BPC has taken a number of strides forward in the past year. A strategic decision has been taken to balance the risk by spreading it on a mix of exposure to Exploration, Development and Production assets with a budget of up to Rs.15, 000 million over a five year period. With a view to achieving quick return on investment and retaining the goal of oil security, a number of properties were evaluated during the year, both in India and abroad.

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Considering the need for a focused approach for Exploration and Production activities, implementation of the investment plans of BPC at a quicker pace, facilitate faster decisions, mitigate business risks, adopt the latest technology, acquire business skills, expeditiously place competent human resources etc., it was felt that the formation of a separate subsidiary company would be the best option. BPC’s board has recently approved the formation of a wholly owned subsidiary company viz. Bharat Petro Resources Limited, with an authorized share capital of Rs. 10,000 million, for carrying on Exploration and Production related activities.

BPC, in its ambition to fulfill the national endeavor of accruing reserves as well as enhancing refining capacity, is successfully spreading capital in both risk related ventures as well as revenue generation assets. With a view to enhancing the technical capability and to become a robust exploration company, BPC has proposed to strengthen the Exploration & Production activities by establishment of interactive work stations for internal evaluation of seismic, geological, well logging and testing data of different exploration and exploitation blocks. The process of augmenting manpower required for manning these work stations and to give a thrust in its endeavor to succeed in its operations is being seriously pursued.

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B.) REFINERIES

Mumbai Refinery achieved its highest ever crude processing level of 10.30 MMT during the year, covering 21 types of crude, including 4 new ones, taking the total number of crude processed to 67.

The refinery also commenced export of 380 cyst viscosity Fuel Oil during the year to save on high value middle distillates. Production and delivery of Euro III equivalent MS and HSD was enhanced for meeting the demand of Mumbai metro and other major cities. The first batch of 97 octane petrol was produced and dispatched in October 2005.

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Since the unit is based on Hydro processing technology, the LOBS production is not constrained by crude origin and quality, as is the case with conventional units. This plant is the first of its kind in the country.

The capabilities of the quality assurance laboratories were upgraded to test and certify Euro-III quality Gasoline and Diesel. New generation analytical instruments like High Performance Liquid Chromatograph (HPLC) for determining Poly Nuclear Aromatics (PNA) species, instrument for measuring low concentration Sculpture

levels using X-ray technique etc. have been installed to meet the new business requirements.

The refinery achieved 4 million man-hours without any Lost Time Accident (LTA) during the year. This year, 1599 maydays of safety training were imparted to the employees. Around twenty managers from various functions were trained For enhancing contractors’ safety, training was conducted for 7288 contractors’ workmen, 1065 contractors’ supervisors and 47 contractor owners. As a part of women empowerment

During the year, the refinery was conferred with the following awards:

a) Three Star Export house status from Joint Director General of Foreign Trade.

b) Jawaharlal Nehru Centenary award for Energy Performance of Refineries.

c) OISD award for overall performance in safety.

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d) FACT MKK Nayar Memorial productivity award.

C.) RETAIL

The fiscal year 2005-2006 was a testing year for the industry. Spiraling crude prices, uncertainty over retail price increases, erosion of margins, expansion and consolidation of the business by private oil companies and treading a fine line between profitability and market share, brought into play business dynamics and ushered in a new paradigm, bringing in new experiences for the industry The Retail Business unit overcame stiff competition and aggressive market tactics deployed by the competition and was able to stem the initial slide by retaining the second position in the retail fuels market with sales of 11.61 MMT during 2005-2006.

The high point of the year for the Retail Business was BPC being conferred the award of the Forecourt Retailer of the Year 2005 by Images, the leading Retail publishing house.

The jury, while deciding on BPC as the winner in this category, took into account BPC’s unique bouquet of retail products and services and particularly for “setting innovative trends in retailing”, “providing increased value for money to its customers” and “providing evidence of leadership in the field of collaborative efforts for its retail operations.”

The emphasis during the year was on network expansion with the commissioning of 902 retail outlets, representing21% of the 4304 new retail outlets commissioned by the industry during 2005-06. Numbers apart, the qualitative aspect of the retail network continued to make BPC stand out in the industry, with throughput per RO at 153 KL being15% higher than that of other industry members. The year also saw a significant increase in competition from private sector players.

The subdued growth in MS sales has to a large extent been compensated by the extensive success enjoyed by “Speed”, the market leader in the branded fuels segment. With an 18% share of MS volumes, Speed recorded sales of 445.8 TMT through a 2700 strong retail outlet network and consolidated its leadership position with a 40.2% share of a rapidly expanding market.

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Speed 97 was available in 79 retail outlets in major urban markets. Speed 97 sales stood at 334 MT for the first 6 months after its launch. During the year, a series of

new mass media campaigns around Speed and Hi-Speed Diesel were launched. In keeping with BPC’s tradition of connecting with today’s contemporary Indian, the latest youth icon of the country – Mahendra Singh Dhoni – has been signed as the new Brand Ambassador for Speed and MAK brands. BPC is confident that the association with M. S. Dhoni and its existing Brand Ambassador, Narain Karthikeyan, will enable the brands to scale new boundaries of brand recall and visibility.

BPC continues to remain committed to delivering superior value to customers. The year saw the expansion of the “Pure for Sure” (PFS) network through the enrolment of 670 fresh retail outlets under the PFS brand. With a total of 4643 retail outlets certified under the PFS banner, 65% of the RO network now consistently delivers superior value to customers. With the product assurance of Quality and Quantity, the customer validation of the PFS brand has further strengthened, with 7.2 out of every 10 liters purchased from the BPC network being through a PFS outlet. With a view to assure quantity and quality across the entire network, there are plans to bring the non-PFS outlets also under the ambit of third party audit. Automation at retail outlets is another key area of attention. The objectives behind this initiative are to provide assurance on Quality and Quantity to customers, improvement in service / transaction time at the outlet, mitigate risks relating to frauds and ensure effective monitoring of stocks.

Keeping pace with the increasing penetration of credit and debit cards in various consumer segments, BPC has firmed up strategic payment facilitating alliances with State Bank of India and HDFC Bank, for increased customer convenience and to drive their respective customer bases to BPC’s outlets. BPC added another dimension in its Customer Relationship Management programme by joining hands with the Tata group in the launch of the Tata Credit-cum-Loyalty Card.

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D.) AVIATION

The Indian aviation industry has been going through a dynamic growth phase. A number of new players have entered the market. There has been a quantum increase in the number of international flights into the country.

The booming economy, coupled with the attractive fares on offer, has led to a sharp increase in the number of first time fliers. The once stagnant market is now buzzing with activity. In this scenario, ATF sales have been growing rapidly despite the high prices. The growth is expected to continue in the o continue in the coming years.

Infrastructure

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These changes and activities have opened tremendous opportunities for growth for the Aviation Business Unit. During the year 2005-06, BPC grossed a sales volume of 680.67 TMT of ATF. This represents a growth of15.91% over the previous year. Several locations, including strategic locations like Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad and Cochin achieved their highest ever sales during the year. Despite the intense competition, BPC has been able to retain most of the major domestic and international customers.

At all the 19 Airports we have adequate tankage and modern fleet of Refuellers and Dispensers.

After nationalisation in 1976, we have come a long way. At Indira Gandhi International Airport, we own & operate one of the modern Hydrant Fuelling Systems. Presently, it is the largest Hydrant System being operated in India. Recently, at newly inaugurated Cochin International Airport, we have constructed and are operating the State of Art Hydrant system. The hydrant system at Cochin airport has console with Programmable Logic Control (PLC) based control/monitoring system for entire tank farm, pump house, QC ops. The added features of console is the on line data in respect of fuel level, pump sequencing, pump tripping, Pd on line and history of all facilities.

Our mobile & static facilities are equipped with features to ensure high standard of quality and safety. We are constantly improving upon by updating technology.

They have also exposed our officials and staff to international work culture and practices with placement abroad and periodic inspections of our facilities by shell specialists.

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QUALITYQUALITY CONTROLCONTROL

DEPARTMENTDEPARTMENT

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9.) QUALITY CONTROL DEPARTMENTPure For Sure

A) Concept B) Quality Measures

A.) Concept

PURE FOR SURE

The Sign of a New RevolutionBharat Petroleum recognizes that one of the basic needs of the customers is pure quality and correct quantity of fuels. Bharat Petroleum is passionately committed to making this need a reality at its Retail Outlets. As one of the major initiatives in this direction, Bharat Petroleum has launched an 'Enhanced Fuel Proposition' (EFP) programmed - A nation-wide effort a dispensing pure quality and correct quantity of fuel, and at the same time delivering courteous, fast and efficient service.

The retail outlets covered under this program display the 'Pure for Sure' sign - an outturned palm forming a circle with the thumb and the first finger - also imprinted on the dispensing units and on the back of the blue uniform sported by DSMs, and TUV's certificate displayed at the outlet. At such Retail Outlets, Bharat Petroleum guarantees that the correct quality and quantity are dispensed. In order to be able to do so, strict quality control and tracking measures have been put in place at every point from the Supply Point (Depot) to the customer's fuel tank.

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Special locks have been provided in tank lorries and comprehensive sealing has been undertaken at the dispensing units. Before certification, the Retail Outlets are subjected to stringent tests by TUV SUDDEUTSCHLAND - INDIA, a renowned international agency, to ensure that all parameters of the program are complied with. Mystery audits and extensive inspections are carried out at these Retail Outlets to ensure that they continue to comply with the requirements of the EFP program.

Expectations of the Customers out of this program: Values for money from “Pure for Sure” outlets as these outlets dispense

right Quantity of pure fuel. Better mileage and lower maintenance expenses on their motor vehicles Efficient fuelling and courteous service resulting in saving of time.

Reduced pollution due to the use of pure fuel.

During the last 3 years Bharat Petroleum has implemented a set of Customer Service Standards, which has been well appreciated by customers. The 'Pure for Sure' program is an even more focused, and intense effort towards ensuring Quality and Quantity, courteous and quick

B.) Quality measures

Guaranteed Q&Q

With the ultimate aim to inspire complete trust in its retail outlets, Bharat Petroleum has adopted stringent measures to ensure quality and quantity at every point - right to the customer's fuel tank. To achieve this, two sets of Q&Q measures - 'Input measures'

The 'Output Measures' involve rigorous periodic and surprise checks, regular testing of samples both for clinical and octane number, dedicated mobile vans, etc. Bharat Petroleum has collaborated with an independent global agency 'TUV SEDDEUTSCHLAND INDIA' to build a fully computerized format to be installed at every outlet.

Courteous service:

Customers choose vendors on their value perceptions, which include quality, reliability and expertise. Each time the customer drives into the forecourt he needs to be recognized and acknowledged, greeted with a smile, made to feel special, and cared for.

It may perhaps take three or four fills for the customer to notice an improvement in Q&Q. But his first exposure to exemplary courtesy and personalized service will make an instant impact, resulting in reinforced consumer confidence and positive referrals.

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Efficient fuelling: Here, time is a vital factor. The level of service should be quick and efficient so as to bring home the fact that precious time is not wasted on delayed transactions.

the resultant performance on various elements like total time taken to fuel each vehicle, Q&Q checks, etc. Performance is also tracked through mystery customer audits. Feedback on an outlet, i.e. dealer/DSMs performance is obtained from customers frequently patronizing an outlet, through a questionnaire specially designed for the purpose.

RETAILRETAIL OUTLETSOUTLETS

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10.) Retail Outlets

A.)Petrol Pumps:-

Making A Difference through Innovative RetailingBharat Petroleum's efforts have all along been to build a superior understanding of customer needs and relentlessly work towards fulfilling these needs. Bharat Petroleum is consciously working towards providing added value to customers, both in fuel and non-fuel areas. Initiatives, some of them pioneering efforts, have been introduced based on need gaps articulated by consumers during focus group discussions and extensive market research.

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Recognizing that the basic need of the customer is pure quality and correct quantity of fuels. As one of the major initiatives in this direction, Bharat Petroleum has triggered a virtual movement at select Retail Outlets (Petrol Pumps) to guarantee pure quality and correct quantity to its customers.

This 'Enhanced Fuel Proposition' movement, which is the sign of a new revolution, has been gaining nation-wide momentum after its initial launch at a few centers. Retail Outlets enrolled in the movement display the 'Pure for Sure' signage very prominently at the Outlet.

Bharat Petroleum's efforts began with remodeling and upgrading Retail Outlets to world class standards back in 1996. Retail Outlets have been equipped with state-of- the-art modern infrastructure, including the Multi Product Dispensers to pre-set price and quantity of fuel and Electronic Air Gauges facilitating precise inflation of tires. Attractive Canopies are suitably designed to provide shelter and adequate lighting of the forecourt at most Retail Outlets.

On the Non-Fuel front, Bharat Petroleum has introduced the Errand Mall concept successfully at select markets. Called the 'In & Out' , these malls offer the customer a broad range of facilities and brands to choose from. ATM's, Cyber café, Courier services, Laundry, Photo Studio, Music, Fast Food, Greeting Cards, Courier Services, Bill Payments, Movies / Entertainment Tickets, etc. have made Bharat Petroleum's Retail Outlets a happening place and indeed an rewarding experience for motorists.

To make life more convenient and rewarding for customers, Bharat Petroleum has introduced the 'Petro Card™' for individual customers and the 'Smart Fleet Card' for fleet owners. Using the Petro Card entitles the customer to PetroMiles under the Poltroons rewards programmed.

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Bharat Petroleum has also pioneered the concept of convenience stores at select petrol pumps that operate under the name 'Bazaar'. These Bazaars provide a wide range of convenience items and fast foods to customers in conditioned and friendly environment.

Retail Outlets services:

1) In & Out Stores 2) ATM's in RO's 3) Air, Water & Wash room 4) Lubricant Top-ups 5) Credit & Debit Cards

 

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Services:-i. In & Out Stores:

Bharat Petroleum has pioneered the concept of Convenience Stores in the country. Called 'In & Out', these Stores go a long way in meeting customers' convenience needs on the road. The fact that these 'In & Out' work late in the night when most other stores are closed is a significant help. The product mix extends from light snacks and a can or glass of Pepsi for the hungry traveler, to breads, milk and personal care products. Some of the stores even vend frozen foods, greeting cards, music and gift item.Managing the supply chain efficiently holds the key to the success of the retail business. During the year, BPC finalized a Road Transport rate contract through a process of e-bidding. This was a first in the Indian petroleum industry. This process has significant potential for bringing about savings in transportation costs, which forms a major portion of the distribution costs for oil marketing companies. With a view to effectively track the fuel movements transported through lorries, BPC has commenced a new initiative of segmenting customers, with a view to provide superior customer enablement, thereby achieving market leadership position. This initiative of offering solutions to customers, based on their psychographics and fuelling behavior, was initiated during the year.

ii. ATMsAutomatic Teller Machines of various leading banks have been provided at select Bharat Petroleum Retail Outlets (Petrol Pumps) for the convenience of the customer. The convenience of the ATM is that it removes the restriction of timings of the traditional banking system. In an emergency, especially at night when the good old bank is closed, the ATMs become a boon.

Our petrol pumps are ideal locations from the customer convenience point of view. With various networks emerging amongst the banks in future, a cardholder will be

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able to draw cash from the ATM of any bank. Bharat Petroleum has started this initiative with two banks and now has ATMs of over 13 banks on its sites.

iii. Lubricant Top-ups

Lubricant fills & top-up

Getting the oil changed for a vehicle is no longer time consuming. One can drive into one of Bharat Petroleum's modern petrol stations that have the latest equipment, which just sucks out all the used oil and automatically fill the engine with fresh Automol Gold Engine oil - All this in just 14 minutes.

iv. Air, Water & Wash room

While free air, water and wash room are mandatory requirements, Bharat Petroleum has extended it beyond the mandatory need by providing automatic air gauges at its new generation outlets.

v. Credit Cards & Debit Cards

Bharat Petroleum pioneered the concept of a co-branded credit card. Today over 1,500 Bharat Petroleum Petrol Pumps accept Debit & Credit cards that have either a MasterCard or Visa logo on them.

In addition to this, selective Petrol Pumps offer a waiver of the fuel surchage on HDFC Bank Debit Cards, SBI Debit Cards, Standard Chartered Bank Credit Cards, Standard Chartered Bank SmartFill Debit Cards and HSBC Credit Cards.

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B.) Technology in retailing:-

Revolution in Indian Consumer behavior… Rising disposable incomes (higher buying power) Male no longer the sole income generator Enjoys traveling, shopping, and eating out Increased indulgence in entertainment and lifestyle products Pester Power, seeking variety Seeking value for money (High quality and price consciousness) Technology Savvy (Internet, Mobiles, Voice Recognition …) Getting used to speed of service Convenience seekers

… Urban, rural, highway, all are getting more demanding and Technology savvy.

Industry has been adopting technology in piecemeal. BPC accelerated technology adoption post 96-97 transformed the fuelling experience …

Fuels Fuels Impulse & Grocery Vehicle Care Payment Options

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Fuelling facility should include …

Fuel Dispensing and Electronic mode of payment fully integrated

Fuel Dispensing and Cash Memo generation fully integrated

DSMs identifiable for each transaction

Reduce re-fueling time; “pump to non pump time ratio not to exceed 2”

Control over fuel receipt and issue ex-RO KEY BENEFITS

Seamless transaction- value of goods & services, electronic mode of payment, and ticket printing

Single payment transaction for multiple point purchases

Convenience / Efficiency/ Speed

Control/ Reliability/ Security

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Impulse & Grocery

The convenience store has in place … POS systems including bar coding that enable efficient store management.

Consolidated Store data that is analyzed at Enterprise level.

KEY BENEFITS

Implement retail best practices Merchandising (category management strategies) Customer Relationship (track buying pattern, run customized promotions,

implement CRM program) Cashiering / billing (increased check-out efficiency, I.e. accuracy of billing

and speed of transaction) No over-charging and sale of Expired products Enterprise connectivity across 30 cities Category analysis at HQ

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Vehicle Care

Our V- CARE is … A mid point solution between the high- ends authorized service stations and

road side mechanics.

Has Repairs and Maintenance. Automatic Car Wash, ATM, Digital Air Inflator, Pollution Checks.

KEY BENEFITS Customers get . . . Choice Convenience location Reduced cost of servicing Improved Profitability Extended working hours

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Payment Options

Payment options are … Smart Card; PetroCard and Smart Fleet Credit Card Debit Card

Smart Fleet Site PetroBonus Site Speed93 Site

KEY BENEFITS Customers get . . . Choice Convenience of not handling cash Array of Information on web Loyalty Rewards Dealers/ Company have . . . Less cash handling Speed in Fore Court and accuracy in accounting PetroBonus Site Smart Fleet Site Speed93 Site

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Fuels and Non- Fuels

Resulting in enhanced value for all

CUSTOMER Seamless integration of goods received and amount paid Reduced transaction time Flexibility in payment mode Cashless transaction Convenience Loyalty rewards Q&Q assurance Improved vehicle care/ less cost

DEALEREffective control over forecourt transactions and RO operation

Reduced no. of staff in forecourt Easier and automatic accounting Reduced cash handling Improved market image Increased Profitability

COMPANY

Improved customer knowledge Improved efficiency in forecourt Improved profitability Enhanced customer satisfaction Improved brand equity Customer loyalt

While the level of automation is, invariably, a trade-off between the cost of investment and the customer value

Critical Success Factors:

Defining Levels of Automation Best in the class vendors; mostly Global Indigenous equipments compatibility Change Management Dealers Company

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C.) GHAR

BPCL GHAR

For the ‘Trucker and Tourists’ ‘Home away from home’

BPCL GHAR is one stop trucker’s shop proposition with multi-facility retail outlet with all the comforts to meet the ‘Trucker and Tourists’ needs and convenience. These outlets are located on all major highways across the country. There are dedicated BPCL officers at these outlets and who offer the ‘Trucker and Tourists’ personalized service all through the day with host of facilities; hence the drivers call it ‘Home away from home’.

At the GHARs, customers can experience many convenient facilities like dhaba services, secure parking space, essential items store, emergency assistance, Doctor, Messaging service, Smart Route assistance and many more at all the 60 outlets as on date and many more will be operations shortly.

Pure for Sure Fuel:-

All the GHARs offer the customer guaranteed quality & quantity of fuel and are PURE FOR SURE. So customers can set aside their worries about compromising on the quality and quantity of fuel!

Secure Parking:-

We understand that it is very important to secure customer’s loaded trucks. That is why at GHARs provide the customers with a safe parking space. That too, absolutely free! Customers can rest aside their worries for loaded trucks while their driver eats, sleeps or shops with us.

Shop, Eat or Simply Relax:-

‘Trucker and Tourists’ can avail of many more convenient facilities. They can eat hygienic food at the Dhaba at extremely affordable prices! They can even sleep and

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relax in the resting cots; bathe and refresh themselves if they wish to. In fact, they can also shop for essential items like toiletries at these outlets.

Health Care Facilities:-

At select BPCL GHAR, drivers are provided with free medical consultations for minor problems at select outlets during certain timings. They can also benefit from first-aid medication at the BPCL GHAR outlets whenever the requirement arises. To complement this facility which is in remote area we have launched innovative telemedicine services by name “sanjivane” at select GHARs. With this proposition customer would not be required to search for a medical assistance while on the highway, we are there to serve them with world class consultancy and advisory service from one of the best hospital in India.

With BPCL GHAR, drivers need not worry about unforeseen emergency situations. In case an emergency does arise, we have arrangements to provide the ‘Trucker and Tourists’ with assistance like Auto electrical, automobile mechanic, crane, ambulance, insurance agent and even RTO assistance.

Smart Fleet Dak Service:-

Today contacting the driver by the Smart Fleet customer while he is on the move has become very easy. They could simply send him an email message through the Smart Fleet Dak service, which is presently available at select BPCL GHAR outlets. There are GHAR staffs waiting to help him with this facility. The drivers can also contact their transporters through email from these outlets.

Smart Route Assistance:

While on the highway it will be easy to find your route to any place henceforth. With Smart Fleet Route Service all the GHAR are equipped with an e-atlas of India, where from they can help the customers reach their destination with precision of district level roads. They can avail host of information like the name of the place from the pin code, location of important spots etc from this e-atlas provided at the GHARs.

BPCL GHAR today introduces to the ‘Trucker and Tourists’ lot many benefits and opens a new world of convenience to them!

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RESEARCH ANDRESEARCH ANDDEVELOPMENTDEVELOPMENT DEPARTMENTDEPARTMENT

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Research analysis

I have made research on customer satisfaction. The main objective of this research was to know that the customers of BPCL are satisfied with the services which is being provided to them.

To make the research we made one questionnaire which includes the questions regarding our objective. I went to the BPCL retail outlets of Rajkot city and tried to collect the information by asking them questions which I have included in my questionnaire.

The aim of this research was to identify the area of improvement in the retail outlets so that customer satisfaction could be fulfilled and selling could be increased.

The findings and my observation is as follows:

NO. OF PETROL PUMPS VISITED: 3

SAMPLE SIZE: 150

LOCATION: RAJKOT CITY

RESEARCH INSTRUMENT: QUESTIONNAIRE

TYPES OF VEHICLES

128

24

98

0

20

40

60

80

100

120

140

2-WHEELER 4-WHEELER BOTH

Series1

The above graph shows that which type of vehicle the person owns the most. This shows that most of the person is having 2-wheeler the most which is 128, then

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comes the combination of both that is 98 and last comes 4wheeler that is only 24. This says that 2-wheeler users are more.

TYPE OF FUEL USED IN 4-W

74

46

1928

37

0

10

20

30

40

50

60

70

80

PETROL DIESEL SPEED HI-SPEED OTHERS

4-wheeler is such vehicles which consumes the fuel the most. So our focus is on 4-wheelers is more compare to other vehicles. So our observation tells that petrol issuch a fuel which is used in the four wheeler the most. And then comes diesel and like vice.

Facilities Providwd By BPCL

88

372414

35

51Quality

Welcomer

Cleanliness

Stores

ATMs

Services

In this competitive era, Facilities are such a tool by which we can attract the customers. In the same way in the petroleum industry all the companies provide very good facilities to the customers. So BPCL tries to serve the customers very well. So above chart shows that which facility attract the customers the most.

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Extra Services

45

43

22

14

5567

34

65

No hindrance likeroadside venders or anyothers

Easy and wide entry tothe outlet

No pits/holes/bumps onentrance

Spick & span RO/Decluttering/properly paved

Human signals to showthe path after entry

Availability of forecourtmanager

Use of chainlinks/disciplined queuing

Good lighting facility atnight

As we know that customer is the king of the market so whatever they demand from the marketer those the entire things marketer has to provide to them. So above extra facilities is that which BPCL provide to the customer in extra.

Side Services

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8749

63 Clean hygienic washroom facilityAir filling facility

Presence of ExitsupervisorEasy & smooth exit

These are some facilities which are being provided by the company to the customers at the time of exit. In this free air filling facility is very popular in all. This satisfaction is given by the company to the customers. The above graph shows this only.

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INFORMATIONINFORMATION SYSTEMSYSTEM

DEPARTMENTDEPARTMENT

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12.) INFORMATION SYSTEM DEPARTMENT

A.) INTEGRATED INFORMATION SYSTEMS

BPC has continued with its tradition of using Information Technology (IT) as a facilitator in achieving business objectives and deriving significant benefits. Several milestones were achieved in 2005-06 with the successful deployment of various IT initiatives. The “Supply Chain Management” (SCM) project was implemented during the year for the Lubes business. The project was aimed at improving responsiveness to market demand while substantially lowering overall supply-chain costs. The end to end supply chain planning processes cover demand planning, supply network planning, production planning and detailed scheduling. The SCM project went live in October2005. In the days to come, this solution is expected to yield major benefits through inventory optimization across the Lubes supply network, in addition to providing complete visibility and transparency for the entire supply chain.

In recognition of the successful SCM implementation, BPC was awarded the prestigious ‘NASSCOM IT USER award - Best Supply Chain Management under the Oil& Petrochemical Refineries/Fertilizer Category’. There are now plans to undertake implementation of SCM in the LPG SBU, which is one of the largest SBUs having

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complex logistics involved in the movement of packed and bulk LPG and associated inventory management problems.

Subsequent to the receipt of ‘in principle’ approval from the Ministry of Petroleum & Natural Gas for the merger of BPC’s erstwhile subsidiary, KRL, work was initiated on achieving system integration across the merged entity. This involved aligning

business processes, making changes in a running SAP R/3 system and training of the affected users. The process was completed within a short span of four months and things were kept in readiness pending completion of the merger formalities. Consequently, there was a smooth transition to a single system on1st October 2006 within a short time of receiving all relevant approvals for the merger. With a view to exercising better budgetary control over expenditure, BPC has implemented the Fund Management module. Another process improvement achieved was the implementation of the off-cycle payroll feature, by which all employee payments/reimbursements from the financial year 2006-07 onwards are directly remitted to the employee’s bank account, thus eliminating the generation of a large number of payment vouchers across the company.

by the in-house team. This will help build a strong base for integration with the Net Weaver components of SAP and thereby keep up with new technology, offering new and powerful features. The Solution Manager tool in SAP, that enables all users to directly log in issues for speedy response from the support desk as well as for on line system monitoring, has been upgraded.

BPC has connected 200 retail outlets through Ku Band based VSATs across the country for on-line capturing of data in respect of Petro Card / Smart Fleet Card and the Cash Management System. This will also support the retail automation initiatives

This will help in creating a common communication medium across different applications, leading to cost savings and highest possible network uptime.

The Uptime Champion award is in honor of organizations where IT infrastructure needs are to be guaranteed with an uptime of 99.999 percent and protection available on 24x7 basis.

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As a part of the Information Security Policy, the password policy was successfully implemented in the BPC domain across the country to enhance data security. During the year, strong support continued to be provided to the businesses in implementing new initiatives like e-Chou pal, B2B and sale of CNG and LNG. Implementation of the Instant Messaging feature has enabled businesses in bringing down the communication cost at major locations. Vendor Portal, an in-house development, provides real time information on Request For Quotations, Contracts, Purchase Orders, Statement of Accounts etc. for select vendors from the backend SAP R/3 system over the Internet. BPC leverages smart card technology to design and offer loyalty cards. B2B and B2C transactional platforms have been created to assist industrial customers and global aviation consumers to transact business online.

SMS PULL Applications, developed in-house for Smart Fleet Card owners, helps them to know their balance, set limits or block the usage of Fleet cards and track the location of the vehicle, based on the usage of the Fleet card.

B.) Keeping Pace in Time:-

The Performance Index for IT Infrastructure and support on Facilities Management Services/Call Centre operations have been maintained at near 100% levels, thus helping to maintain the highest level of satisfaction amongst the end user community. Clearly, BPC is one of the few Indian corporate houses that walk the talk when it comes to using the information super highway, giving it an “e-edge”.

To get real time information on various transaction and the processes there of, SAP R/3 version of Enterprise Resource Planning (ERP), has been implemented through out the organization. All our airport locations and Head Office have gone live on

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SAP. We can now access all the transactions on real time basis. If we can access so can you - our customers!

Very soon BPCL will come to you with the detailed proposal on B2B and B2C arrangements with it, which will give the opportunity to customers to access all

transactions related to the re fuelling of aircrafts and payments details through BPCL website on real-time basis.

BPCL is also implementing Astranova - An Apron automation system, which would relay the information’s right from the apron through SAP to it’s customer.

C.) Internal control system and their adequacy

BPC has a system of internal controls to ensure optimum utilization and protection of resources, IT security, speedy and accurate reporting of financial transactions and compliance with applicable laws and regulations, as also internal policies and procedures. For this purpose, the company has formulated a clearly defined organization structure, authority limits and internal guidelines, rules for all operating units and service entities. SAP R/3 and Business Information Warehouse systems have further enhanced the internal control mechanism.

BPC has an internal audit department consisting of experts from various functions, which supplements the review of key business processes and controls through regular audits. Audit reports, significant risk area assessment and adequacy of internal controls are also periodically reviewed by the Audit Committee through meetings held with management, internal audit and statutory auditors.

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HUMANHUMAN RESOURCERESOURCE

DEPARTMENTDEPARTMENT

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13.) HUMAN RESOURCE DEPARTMENT

A.) Introduction to the personnel department:

In any organization management of people plays an important role to be success in the competition. Personnel management refers to management of personnel. We know the important component of an organization is its human resources or personnel. It is the human resource or personnel .it is the human resource which is of prominent important in success of any organization because most of the problems in organizational settings are human and social rather than physical and technical and due to its vast importance human resources should be managed properly so personnel department is prominent.

EDWARD FLIPPO STATES:-

Personnel management is the planning, organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual organizational and social objectives are accomplished.

This definition shows that personnel management covers both management function as well as operative function. The purpose of all these functions is to assist in the accomplishment of basic objectives.

It is important branch of knowledge, most of the progressive organization having separate department, and they are appointing the expert as personnel managers. The success of any organization depends upon workers and therefore it is considered as

“Mind your men and Men will mind all other things.”

This management of personnel is done by personnel department. In BPCL also there is one separate personnel department and it is handled by the personnel managers. Personnel manager manages the problem of personnel and also does activities of recruitment, selection, training, wages and administration etc. of personnel.

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B.) HUMAN RESOURCES

As on 1st April 2006, BPC had 11,995 employees and the erstwhile KRL had 1879 employees on its rolls. BPC’s core strength has always been the quality of its human resources. In line with this belief, BPC always seeks to involve people across the organization in all the major initiatives being undertaken. This engagement ensures ownership of people at all levels to the goals and targets set. Accordingly, a cross section of the employees were enrolled in the process of revisiting BPC’s vision, keeping in mind the emerging needs of the competitive market place through the process of ‘Appreciative Inquiry’. A total of around 1000 management staff has been covered during the year.

The entry of competitors in the Indian market, both in the upstream and downstream segments of the industry, have driven compensation levels upwards, which in turn posed a major problem of retention of staff in the public sector oil companies. Attracting and retaining the best talent has become a big challenge. Several recommendations have been made to the Government of India in this regard. As a proactive step, with a view to differentiate performance and reward high performers, BPC had introduced a Performance Related Incentive Scheme for the first time in 2003-04. The scheme has been fine tuned during the year by increasing the differential of incentive across various levels of performance. Notwithstanding these initiatives, BPC had an attrition rate of 4.71% during the year 2005-06. With a view to benchmark performance with the highest standards, BPC had identified competencies which set apart outstanding performers. During the year, the process was carried forward and these competencies have been used to profile select staff.

BPC has implemented the ‘development center’ for its employees. The ‘development center’ is a method for assessing the competencies and development potential of the participants by trained assessors using diagnostic processes. A total of three Development Centers were conducted during the year covering 31 Territory Managers. Training and Development continues to be an important thrust area. The Bharat Petroleum Learning Center at Mumbai and the Regional/Refinery Training Centers are used for imparting training on new initiatives and for skill up gradation of employees. During the year 2005-06, 7977 mandays of training were conducted in BPC and 6015 mandays of training in the erstwhile KRL. Through this process, 4103 employees of BPC and 1455 employees of the erstwhile KRL were trained and inputs given in both functional and managerial areas. The Bharat Petroleum Scholarship for Higher Studies scheme launched in 2003-04 is BPC’s contribution to promote excellence in higher education. Deserving students are identified and financial support provided for higher studies in prestigious institutions in India and abroad. During the year, 19 students going abroad and 5 students studying in India were awarded scholarships under the scheme.

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Reaching out to others has been BPC’s forte over the years. This has now been recognized internationally as BPC, along with Maruti Udyog has been ranked number one in Corporate Social Responsibility in the country by TNS Automotive. The study, conducted across 16 countries, addressed issues like ethics, concern for employees, products that improve the quality of life, creation of jobs, preservation of natural resources and disaster relief efforts on the part of companies. The Ideas platform, which was institutionalized in the year 2000, to nurture creativity and innovation amongst employees, has become a key event in the organization. Employees look forward to this event to share the innovations made by them at their work place. During the year, new award categories were introduced, both in Refining and Marketing, besides Research & Development. A total of 51 Awards were given away in recognition of the contribution made by the participants. One of the key challenges that BPC is facing is the retention of skilled and experienced manpower. The opening up of the economy has created numerous avenues, besides increasing overall compensation levels. At the same time, BPC has ambitious plans and goals. While attrition is a reality, BPC is constantly focused on improving its HR policies to face the emerging challenges.

C.) Time keeping system

Each unit has its own time keeping system. Every company must have time keeping section to measure regularity of its employees in time keeping system. The arrival and departure of employees is recorded.

In each retail out let timings are in 2 or 3 shifts. Generally they are as under.

If 2 shifts, 8:00 a.m. to 8:00 p.m.

8:00 p.m. to 8:00 a.m.

If 3 shifts, 7:00 a.m. to 3:00 p.m. 3:00 p.m. to 11:00 p.m.

11:00 p.m. to 7:00 a.m.

This is about the retail out let but for office worker timings are from morning 10:00 to 6:00 o’clock. These employees get holiday once in a week that is on Sunday.

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D.) Recruitment, Selection and Induction

To fill the vacancy in the organization recruitment and selection is done.

RECRUITMENT:

“Recruitment is the process of searching for prospective employees and stimulating them to apply for the job.”

Recruitment is the positive process. There are mainly 3 methods of recruitment viz.,

Direct method Indirect method Third party method

There are 2 sources of recruitment 1) Internal sources 2) External sources

If company adopts internal source of recruitment then recruitment is done within the organization, and if company adopts external source for recruitment then employees are recruited from outside.

The best internal source is promotion and external sources are advertisement, trade unions, schools, colleges etc. In BPCL recruitment is done from colleges i.e. campus placement. And promotion is based on the performance not on the basis of seniority.

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SELECTION:

After the ending of recruitment process the selection process start.

According to Dale Yoder:-

“Selection is the process in which candidates for employment are divided into two classes.”

Those who are to be offered employment. Those who are not.

Thus the selection is hands of the management of differentiate the qualified and unqualified applicants by applying various techniques.

In BPCL for different posts different applications forms are there with each application form are assessment sheet is there which is assessed by the interviewer at the time of interview. They adopt the simple policy for general post means there is no lengthy process for selection for selection of general post. They send the candidates to concern supervisor and candidates have to work under that person say for one week. If supervisor satisfied then he selects the person foe the job, but for executive post like officers and engineers, they arrange interview and such interview is conducted by managing directors, general manager and other managers. In such interviews are assesses by interviewer according to assessment sheet. In this selection salary negotiation is also there.

After this, they issue an official form for selected persons. If the person wishing to work he will sign this offer by this way the person is selected.

INDUCTION:

A selected person is then goes through process of induction. induction means the introduction of employees to the organization and the job by giving them all the possible information about the organization history, objectives, rules, code of conduct, productions, good will in the market and in the community, future development opportunities and by introducing them to other employees.

BPCL also fulfills the formality of induction. This work is done by the head of the department.

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E.) TRAINING AND MANAGEMENT DEVELOPMENT

TRAINING:

Every organization needs to have trained and experienced employees to perform the activity that have to be done. Employees training for development are not only an activity that an organization must it. Training and development of personnel is a follow up of selection. It is an improvement and enhancement of different type of skills so that employee can perform their jobs effectively. There are two types of training methods.

On the job training Off the job training

In on the job training persons are trained during the working hours. no, extra time is given for that on the job training. In BPCL departmental head and welfare officer handle the training. Training is given whenever required at least once in a year training is given to each employee.

The employees of retail outlets i.e. petrol pump given training twice in a year. Training is related to their job profile, service to customers, and knowledge about new products. This training is given by senior officer of BPCL.

DEVELPOMENT:

Development is long term education process utilizing systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose.

Thus, development covers not only those activities which improve job performance but also which bring about growth of the personality, help individuals in the progress towards maturity and actualization of their potential capacities and over all development like the attitude, behavior, thinking level etc. BPCL also performs various functions for the development. For the employees of the petrol pump BPCL planned one development program for the spiritual development by distributing the “YOGA CARDS” with c.d. and demonstration. That yoga card is as under.

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F.) Promotion and transfer policy:

A promotion may be defined as

“an upward advancement of employees in an organization to another job, which commands better wages, better status and higher opportunities, responsibilities and authorities, better working environment hours of works and facilities etc.”

A promotion is a vertical move in rank and responsibilities while a transfer a horizontal movement of an employee from one job, section, department, to another at the another place where his salary, status, responsibilities are the same.

Here in BPCL there is no such standard policy is available, but generally promotion is based on experience and performance. While transfer is done at any corner of the country as per requirements and situation. Transfer is done after every 3 years.

Consideration in transfer:

Organizational requirement in terms of functional and managerial skill for managing various positions.

Filling in vacancies consequent upon promotion of officers or on creation of new posts.

Rotational assignment aimed at career development of the officer. Demand at a particular location requiring specialized knowledge or

experience.

G.) Performance appraisal system:

Once the employee has been selected, trained and motivated, he is then appraised for his performance. “Performance appraisal is the process of evaluating the performance and qualification of the employees in terms of the requirement of the job for which he is employed, for purpose of administration including placement, promotion.”

There are so many methods to appraise the employees but BPCL system to appraised the employees are as under.

GradingGraphing rating scalesCritical incidentsGroup appraisalField review methodAccounting method

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They measure the skills, experience, ability, discipline, attendance, regularity, and give this report to the head and this report is useful in promotion etc. thus they determine the performance appraisal.

H.) Working on ESI scheme:

Employee state insurance is the one of the most popular scheme for the employees sickness and insurance scheme. In BPCL employees state insurance scheme is applied which works under the act of 1948.This scheme can be applied in only those units which have more then 50 workers so naturally it is applicable in this unit also. Personnel having rs.3000 monthly salary and downwards is eligible for ESI scheme. They get benefits for self and dependent, accident on duty, death benefits etc.

The main benefits of employees at the time of contingences are;

SicknessMaturityAccident.

These all types of facilities are given in ESI scheme.

I.) PROVIDENT FUND SCHEME:

Provident fund scheme is a kind of saving. Any company having more than 50 employees can join this scheme. This is a statutory scheme meant for welfare of the employees. In India this scheme is applied in all the industry.

In order to gets the benefits of those scheme employees should have completed continuous at least 60 days service. In the organization- under these scheme employees has to contribute 6.25% for provident fund and 1.75% for family person pension. An employee gets 12% interest on the contribution of his provident fund.

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J.) GRIEVANCE HANDLING PROCEDURE:

In BPCL grievance procedure contains the following steps.

I f a person faces any type of problem then he will report to the concerned officers. If any grievance arises in the mind of any employees they explain his grievances to nearest supervisor or the departmental head. Dissatisfaction was arising due to certain reasons like:

Payment of wages and salary Problem of leave Transfer Promotion etc.

If the grievance is not settled by the supervisor, then it is sent to higher level manager or personnel manager.

If the decision of the manager is not accepted by the grievant, he may approach to the top manager.

In spite of all those steps if the grievance is not settled then employee go to the labor court.

In short we can say that there is a good grievance policy in BPCL and it handled very smoothly and satisfactory.

K.) COLLECTIVE BARGAING AND AGREEMENTS:

Collective bargaining refers to agreement between the management and representatives of the union of the workers. The system of collective bargaining and agreement is adopted in the Gujarat since 1952 and this is adopted by different units, many a time problems and grievances occurs which have to be solved. Problem related to working condition, facilities, salary etc.

These problems are to be solved by agreement between both parties. To settle a problem first survey of industries are made and general conditions are find out. There must be a positive agreement between two parties. If the favorable agreement is not made strikes or goes slow occurs. Go slow process is now-a-days very common process. Management can not prove anything in this case because production is on the process but is slow.

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L.) TRADE UNION:

BPCL has registered trade union. According to selection 2(6) of the trade union act-1926. “A trade union is any combination of persons, whether temporary or permanent, primarily for the purpose of regularizing the relations between workers and employers, or between workers and workers and for imposing restrictive condition on the conduct of any trade or business, and includes the federation of two or more trade unions” usually trade unions are influences by political parties.

BPCL has its own trade union but it is not strong. Many workers present their problems directly and get them solved. This company does not face many problems with trade unions because they themselves settles all the problems of workers like wages, promotion etc. in BPCL workers and engineers are also in their trade union.

M.) PERSONNEL RECORDS:

Personnel records means preservation of information in files and documents. They are generally prepared and completed from reports, and they are meant for long they use. Personnel record is used by management at the time of promotion, transfer etc.of the employees they contain for the employers and the employee information on job analysis. Evaluation and description, recruitment, selection, performance appraised etc.in BPCL.

In BPCL there are also certain files and registers like attendance register, leave register, bonus register, ESI correspondence file, and P.F. correspondence file, man power planning file, recruitment file and personnel file for each individual.

In BPCL human resource department records this type of information.

Application form Personnel data of the employees Family information Qualification Annual confidential report Present address Record of employee’s behavior. The personnel officer of the company keeps the records with there and uses

this at the time of promotion.

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N.) EMPLOYEE BENEFITS AND SERVICES:

Employees are important assets of any organization. So for better work performance they should be motivated. For this they should be given not only financial incentives but also non-financial incentives, and facilities. BPCL much concentrated on above facts and gives many benefits to their employees. They are follows.

Benefits

Paid leave House rent allowance Annual bonus Group gratuity insurance Group insurance of LIC Medical facility

Welfare measures

Uniforms Industrial shoes Winter wear Safety equipment Company loan Welfare fund Canteen Festival sweets Holiday tour Culture programme and sports activities.

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MARKETINGMARKETING DEPARTMENTDEPARTMENT

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14.) MARKETING DEPARTMENT

A.) INTRODUCTION

Marketing is the performance of the business activities that directs the flow of goods and services from producer to the consumer in the process of distribution.

According to CUNDIFF and STEEL,

“Marketing is the managerial process by which products are matched through which consumer is enable to use and enjoy the product.”

According to Paul mazur,

“Marketing as the creation and delivery of standard of leaving to the society.”

Here in BPCL, there is a separate marketing department at head office. The study of marketing management is essential for concern responsible officer or every organization for successful operation because without effective management of marketing, organization goal can’t be achieved.

In BPCL marketing department is managed by experience manager, officers and staff. There are presently two divisions for marketing.

Marketing division Sales division.

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B.) ORGANISATION STRUCTURE

C.) PRODUCT LINE

Product line is a group of products that are related either because they satisfy similar needs of different market segments or because they satisfy similar need of different market segments or because they satisfy different but related needs of a given market segment.

PRODUCTS OF BPCL

Simple petrol 2t mix speed speed 97 speed power mak diesel Bharat gas

SALES OFFICERMARETING OFFICER

MARKETINGDIRECTOR

MARKEING MANAGER

CEO (HEAD OFFICE)

RETAIL OUT LET OFFICER

MARKETING ASSISTANT

SALESASSISTANT

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fuel for aviation

D.) CHANNEL OF DISTRIBUTION

Distribution means to distribute or spread out in the field of marketing. Channels of distribution indicate routes or pathways through such goods and services flows, or move from producers to consumers. The line or channel includes the manufactures and the consumer as well as intermediates.

The most common routes used for brining the products in the market from producer to the consumer are as follows.

1) Producer ------- consumer.

2) Producer-------- retailer.

3) Producer -------wholesaler--------retailer--------consumer.

4) Producer--------agent--------wholesaler------retailer-------consumer.

5) Producer-------wholesaler------consumer.

6) Producer--------dealers-------consumers.

BPCL use only two ways to reach the consumers. Producer------consumer for aviation and to general consumers by company

owned company operated. Producer-------dealers------consumers by retail outlets i.e. petrol pumps.

In Rajkot city there is total seven retail out lets of BPCL from that only one is company owned and company operated while rest six retail outlets are through dealership basis.

E.) SALES PROMOTION

Sales promotion is an important instrument in marketing to lubricate the marketing efforts. It is not expenditure. It is an investment which can pay rich dividends.

Sales promotion is referred to activities other then personal salesmanship. Advertising and publicity, which stimulate consumer purchasing and dealer effectiveness e.g., displays, exhibition, and showrooms demonstration, free samples, coupons, premium and various other nor-recurrent selling efforts not in the ordinary routine.

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It is a plus ingredient in the marketing mix. It is a bridge or a connecting link covering the gap between advertising and personnel salesmanship the two wings of promotion.

BPCL gives sales promotion in two types, Lot of dealers schemes Focus consumers schemes

BPCL uses sales promotion to a certain extent.

F.) ADVERTISING

“Advertising can be defined as mass, paid communication of goods, services or ideas by identified sponsor.”

It is a paid communication because the advertiser has to pay for the space or time in which his advertisement appears. Advertising appears in the recognized media such as news papers, magazines, TV, radio etc.

It is a unique means of non personal or mass communication announcing the sale of goods or services. It can help to introduce a new product quickly. The advertising is non-personal salesmanship. It is silent but forceful salesmanship. by advertising we can tell numerous people about product or service in the quickest time interval at the lowest possible cost. Advertising by facilitating mass production and mass distribution has provided immense employment opportunities to people. It is backbone of modern national and international marketing.

G.) MARKETING RESEARCH

Marketing research is a systematic and scientific collection, recording and analysis of data regarding problems in the field of marketing. Marketing function places particulars stress upon marketing research as an invaluable techniques in decision.

In decision making process to solve any marketing problem as well as in the evaluation of decisions when these are implemented to accomplish the set objective, customer satisfaction and welfare. It is through marketing research an enterprise plans the appropriate marketing strategies and implements the marketing concept, and takes a scientific approach to marketing management.

Marketing research invoices special projects and studies of various kinds including the purchase of outside services on an on going basis designed to improve understanding of the entire marketing system especially the behavior of the buyers, dealers of resellers and competitors.

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In BPCL first of all they study about the customer’s requirements. They try to introduce well facilities every time, they have marketing research them which goes all over the country and studies about the customer needs and desired. Thus, BPCL carry out its marketing research programme successfully.

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H.) COMPETITION AND MARKET POSITION

Competition

Today’s area is globalization area. So every company has to face competition any how, to stand in the market.

The major competitors of the BPCL are, Indian oil, HPCL, cell, reliance, IBP etc.

Market position

Market position of BPCL, can be seen through following charts.

Super 100

Rank

Name of the company

Sales Rs. Cr.

Sales Rank

Net Profit Rs. Cr.

Profit After Tax

Rank

Market Value Rs.Cr.

Market Capture

Rank

1 ONGC 59,874.10 5 14,511.60 1 1,39,748.27 12 Reliance 66,073.30 3 7,628.20 2 76,183.19 33 IOC 1,35,578.90 1 6,012.00 4 59,591.87 77 GAIL 13,851.80 13 2,039.80 8 21,944.88 129 Bharat

petroleum66,444.70 2 1,542.00 12 13,180.50 24

17 HPC 62,968.10 4 1,415.50 13 11,184.32 31

I.) CUSTOMER SATISFACTION

Twice in a year BPCL gets the feedback and meet the customer directly. BPCL keeps the “customer satisfaction index” to know whether customers are fully satisfied with their products or not.

They prepare questionnaire and schedules approach customers directly with series of questions regarding their demands, problems. This way directly information is collected through these replies of questions.

They also approach dealer-retailers and ask about the availability of product, sales promotion measures position and rivals and current competition.

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They also form consumer’s panel and product is submitted to them opinion, suggestions and criticism. J.) BRANDING ON WHEELS

The metro bus recently launched in JABALPUR covers the entire city. Catering to about 1200 people every day. JABALPUR retail territory decided to use this medium to build its corporate image, counting on its continuous visibility (55000 people daily), extended reach and huge impact it creates on the road.

BPCL adopted a bus route in the center of the city and painted the bus with it’s “energizing lives” theme along with energizing skies, business, homes and wheels.

It’s major brands viz. PFS, speed, Hi Speed, In & Out Petro Cards, Fleet Card were prominently displayed on all three sides of the bus as well as the inside windows for the benefit of traveling commuters. The bus was flagged off by deputy general manager of retialoutlet) West on 2.3.2007 at perto lubes JABALPUR.

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K.) LOCAL LEVEL PROMOTIONAL ACTIVIES.

high spirit prevailing among the people On 14th feb.2007 i.e. on valentine day, was enough incentive for Rajkot retail territory to create awareness about BPCL schemes. delares and DSM’S distributed pamphlets informing people about the schemes. A very cost effective way of reinforcing communication, the rally successfully conveyed BPC’s scheme to customers.

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bearing in mind the success of the valentine day rally, Rajkot retail territory greeted the people of Rajkot with a “Bharat petroleum Sadbhavana rally” on Holi, the festival of color and festivity.

L.) INTERNATIONAL TRADE AND RISK MANAGEMENT

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BPC had commenced imports of crude oil for meeting the Refinery requirements in 2002. Since then, the international markets have witnessed considerable volatility and fluctuations in the prices of crude oil and finished products. BPC has been making efforts to develop the required capabilities for efficiently managing the emerging business realities. BPC’s International Trade department had undergone a restructuring exercise in line with the global best practices during 2004-05. The essence of the restructuring, which was to build Trading Risk Management capability, has helped in developing competence in managing commodity risk and innovative decision making capability to support future trading potential. During the year, BPC made a small beginning in hedging its margin risk through selling swaps in product cracks (Dubai crude – Singapore product differential).

International Trade department. With the shipping rates as volatile as the crude prices, it became necessary to balance the shipping arrangement through a combination of Contract of Affreightment (COA), Spot and Time Charter. In line with international best practices, a sound governance mechanism has been put in place. The volume and nature of hedge to be undertaken is determined by the Risk Management Committee appointed by the Board and the overall risk management approach is approved by the Trading Risk Management Board. Counterparties are enrolled through a rigorous evaluation process and trading is commenced only after completion of registration and ISDA (International Swaps and Derivatives Association) negotiations are concluded the first year of hedging operations saw net cash inflow to counter margin loss in physical volumes.

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FINANCEDEPARTMENT

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15.) FINANCE DEPARTMENT

A.)INTRODUCTION

All the functions of management like personnel, production; marketing etc. requires finance for implementation. Financial management is that activity which is concerned with planning, improving and controlling of the firms financial resources.

Prof. S.C.Kunchal has rightly said “Money is the pivot around which all economic activities cluster” Finance in the modern business world is the life of blood of a business. it is said that :-

“Businessman takes money to make money”

From the above statement one question raised, how the business man make money? And there is only one answer by the extra ordinary management of finance. Finance management is that management activity which is concern with planning and controlling of the firm’s financial resources.

Finance function means procurement of find and their effective utilization in the business. In other word, the finance function is concerned with solution of three major problem relations to the financial operation of the firm and i.e. investment, financing and dividend decision.

We know from the above fact that all activities require finance for their implementations. So finance function is the most important for every organization.

In BPCL there is a separate financial department and manage all the financial activities like,

Estimating the requirements of capital for company. Distribution of the profit. Determining the capital structure. Find out new sources of finances. Working of cash and bank management. Control overall financial activities. Recording of transactions. Maintenance of accounts.

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B.) ORGANISATION STRUCTURE

In BPCL the organization structure of finance department is as under.

PRESIDENT

JOINT PRESIDENT

VICE PRESIDENT

GENERAL MANAGER

DEPUTY GENERAL MANAGR

SENIOR MANAGER

COSTING MANAGER A/C TAXATION & COMPANY LAW MATTER

C.) Financial planning

The world of financial planning starts with an idea of establishing a business. Financial planning refers to the process of determining the objectives, polices, procedures, programmes and budgets to deal with the financial activities of an enterprise. The term financial planning means different things to different managers depending on the nature of the business, the firm’s size and so on.

According to walker and baughn, “financial planning pertains only to the function of finance and includes the determination of the firms. Financial objectives formulating and promulgating financial policies and developing financial procedures.” There are two types of financial planning.

Short term planning which made for one year Long term planning which made for more than one year.

BPCL undertakes both the term of planning is done for current assets and long term planning is done for fixed assets.

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The mainly undertakes planning for,- managing liquid budget - Establishing credit policy.- Controlling inventory - Determining debt equity ratio- Determining method for financial etc.

Their main goal of financial planning is to maximize value of its firm.

D.)SOURCES OF FINANCE

Sources of finance means a place from where a company gets their finance. There are mainly two types of source. 1) Internal source 2) External sources

BPCL use both types of sources. The internal sources are as under

Internal sources- Depreciation fund- Profit fund etc.

External sources The external sources of company, are banks, financial intuitions etc. they gets fund from

- Public issues - IDBI- Bank of India- Bank of America- Central bank of India- State bank of India- Union bank of India.

E.) FINANCIAL POSITION

Financial position of the company plays a vital role. It suggest outside, either they take a chance to invest their money in the company or not. It is the skimming of the company’s work. Through various statement of the company. This includes profits & loss and balance sheet etc.

Financial position of the BPCL is very strong, which we can easily determine because of the various statements. Various financial statement of the BPCL is as under.

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F.) RATIO ANALYSIS

1.) Net Profit Ratio The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover from the revenue of the period, the cost of merchandise or services, the expenses of operating the business (including depreciation) and the cost of the borrowed funds, but also to leave a margin of reasonable compensation to the owners for providing their capital at risk. The ratio of net profit (after interest & taxes) to sales essentially expenses the cost prize effectiveness of the operation.

Net Profit Ratio = EBIT Net Sales

Mar 06’-07’ = 5.27 Mar 07’-08’ = 7.64 56.90 80.48 = 0.092 * 100 =0.095 * 100 = 9.2 % =9.5

2.) Current Ratio

Current assets, normally it can be converted within a short period of time (exceeding 1 year). The current liabilities defined as liabilities which are short term maturing obligations to be met.

The higher the current ratio, the larger is the amount of rupees available per rupee of current liability, the more is the firm’s ability to meet current obligation and the greater is the safety of funds of short-term creditors. Thus, current ratio, in a way, is measure of margin of safety of creditors.

Current Ratio = Current Assets Current Liabilities

Mar 06’-07’ = 20.87 Mar 07’-08 = 31.85 9.69 15.56

= 2.15 = 2.05

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3.) Inventory Turnover Ratio

The liquidity is to determine how quickly certain current assets are converted into cash. Poor turnover ratio limits the usefulness of the current and asid tast ratio.

Inventory Turnover Ratio = Cost of good sold Average inventory Mar 06’-07’ = 50.72 Mar 07’-08’ = 71.78 21 30.13 = 2.42 = 2.38

The cost of goods sold means sales minus gross profit. The average inventory refers to the opening and closing inventory. The ratio indicates how fast inventory is sold. A high ratio is good from the view of liquidity and vice versa.

4.) Debtor Turnover Ratio

It is determined by dividing the net credit sales by average debtors outstanding during the year.

Debtor Turnover Ratio = Net credit sales Average debtors

Mar 06’-07’ = 56.90 Mar 07’-08’ = 80.48 6.61 11 = 8.61 = 7.32

Net credit sales consist of gross credit sales minus returns, if any, from customers. Average debtors are the simple average of debtors (including bills receivable) at the beginning and at the end of the year.

The ratio measures how rapidly receivable are collected.

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5.) Debt – Equity Ratio

The relation between borrowed funds and owner’s capital is a popular measure of the long-term financial solvency of the firm. This relationship is shown by the debt-equity ratio. This ratio reflects the relative claims of creditors and shareholders against the assets of the firm.

Debt –Equity Ratio = Long – term debt Shareholders’ equity

Mar 06’-07’ = 15.97 Mar 07’-08’ = 24.29 3 3 = 5.32 = 8.10

A high ratio shows a large share of financing by the creditors of the firm, a low ratio implies a smaller claim of creditors. The D/E Ratio indicates the margin of safety to the creditors. D/E ratio is 2:1 ,it implies low safety margin for the creditors.

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Future Plansa) Intensifying and enlargement of activities in the area of Refinery processes and residue up gradation

b) Development of new process technologies for clean fuels

c) Enlargement of crude basket and identification of opportunity crudes and crude blends

d) Value added Products/Solvents from the refinery streams

e) Bio-technological processes

f) Alternate Fuels e.g. Bio-diesel, Ethanol and Hydrogen

g) Coal/residue to clean liquid fuels

h) Extended R&D Services to other group refineries i) Developing the following grades/products: i) Customer Specific Cutting Oil ii) Rolling Oil for Steel Industry iii) Metal Working Oil for Aluminum iv) Agricultural Spray Oil v) Heat Treatment Oil vi) Defense specific grade vii) Alternate formulations for existing grades

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SWOT ANALYSIS

SWOT is a good tool for a manager, like a thermometer and a stethoscope for a doctor.

S- Concentrates on your STRANGTH.It enables to put your best foot forward.

STRENGTH:

Good brand image. Large scale refining. Good retail net work. Diversified and top quality asset base. Good service. Consumer satisfaction. Dedicated workforce.

W- Recognize your WEAKNESS.Who doesn’t have them? Only when you recognize them can you do something to correct them.

WEAKNESS:

Interference of the government. Transportation cost. Heavy import of raw-material.

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O- Evaluate your OPPORTUNITIES.“Opportunities are plenty even in adversity. Only one has to evaluate them for what they are.”

OPPORTUNITIES:

Good marketing opportunity in LPG and non conventional energy.

T - Research your THREAT.

“Threat are like tickling time bongs, defuse them by anticipating and taking preventive actions.”

THREATS:

Increase price of crude oil in inter national market, causes variation in domestic market.

Competition from the multinational companies.

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CONCLUSIONThe oil industry has become very competitive and it’s becoming increasingly more competitive. This has necessitated each company to identify and develop any function or which can provide a competitive edge. as a result of that many company now recognizing the important role of the service to the customers.

Old is gold may have been in vogue in the last century, but generation next is hooked on to new technologies which are gaining ground in every field, new products and new generation vehicles. An easy start, smooth drive fuel economy and minimum maintenance is what a vehicle owner wants. But all this is possible provided the right quality of fuel and lubricants are used. Having already given their customers the choice of the best branded fuels. BPCL has now come out with the best lubricants with anti-ageing magic to keep their engines young forever!

BPCL is giving constant training to all the employees. From the interaction, interview with all the DSM and DSW. I have given some suggestions which has accepted and implemented by me.

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ANNEXURE

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ACHIEVEMENTS

List of Awards and Accolades won by BPCL between the years 2004-2006:

1. In November 2006, PSU refining and marketing major BPCL has been voted as one of the leading brands in India by MEDIA, a leading international magazine. The company stands first among Indian petroleum companies, 17th among Indian brands and 204th among Asia’s top 1000 brands. Asia 1000 brands is based on a survey for Asian Integrated Media in association with MEDIA magazine.

2. In September 2006, Bharat Petroleum was ranked 110 in Platts 2006 ranking, recognizing the industry's top-performing companies around the world, with Hindustan Petroleum ranked at 122 and IOCL ranked at 41 in the list.

3. Bharat Petroleum has been ranked 32nd according to Fortune 500 2006 listing.

4. On 31st August 2006, BPCL Kochi Refinery bagged the GreenTech Environment Excellence Gold Award in Petroleum Refinery Sector for outstanding achievement in Environment Management for 2006.

5. In June 2006, “Institutional Investor”, a US journal which serves the global investor community has placed BPCL in the 5th position amongst the top 28 Oil & Gas companies in Asia in the area of management of Investor relations. Only PTT Public Company Limited, CNOOC Limited, Sinopec Corporation and Formosa Petrochemical Corporation were ranked above BPCL. The next Indian company ranked in the list was Indian Oil Corporation Ltd in the 12th position. For the purpose of this study, Asia was defined as including Australia and New Zealand and excluding Japan.

6. In an inaugural study conducted by TNS Automotive (the world’s largest Automotive Research company) in March-April 2006, across 16 countries, Bharat Petroleum and Maruti Udyog have been ranked highest for Corporate Social Responsibility. The study shows that consumers across the world are very likely to accept or reject a corporation based on its reputation for social and environmental responsibility. Hindustan Petroleum has been ranked Fourth while Indian Oil Corporation has been ranked Seventh among all the companies mentioned in the list.

7. In April 2006, Bharat Petroleum Corporation Limited has been ranked third at Rs.134,673 million after IOC and SBI as India’s most Valuable brands, in a survey conducted by Brand Finance.

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8. On 2nd December, 2005, BPCL was awarded the NCPEDP-Shell Helen Keller Award-2005 for its significant contribution to creating employment opportunities for people with disabilities.

9. In December, 2005, Bharat Petroleum was ranked one of the top ten on Business India’s ‘Super 100’ list ! The basis is its strong financials, particularly on the four parameters utilized for the listing – sales, net fixed assets, net profit and market capitalization. BPC ranked 9th on the overall rating, surpassing a host of other corporates.

10. In October 2005, Bharat Petroleum was awarded the ‘Business Superbrands Award 2005-06’

11. Bharat Petroleum was awarded the title “Forecourt Retailer of The Year “ in the IMAGES RETAIL AWARDS ceremony that was held in October 2005.

12. On 25th July, 2005, Bharat Petroleum Corporation won the "Award for Excellence" in Information Technology for the year 2003-04, from National Petroleum Management Programme (NPMP) in recognition for our various IT initiatives.

13. In April 2005, the Government of Madhya Pradesh presented Udyog Ratna award to Bharat Petroleum Corporation Limited, to recognize cutting edge entrepreneurship in an environment that is turning more challenging by the day.

14. In November 2004, BPCL achieved yet another significant milestone in bagging the prestigious “Greentech Environment Excellence Award” for the year 2003 – 04.

15. Bharat Petroleum with a turnover of 12.0 billion USD and market capitalization of 2.1 billion USD has found its rightful place in “The World’s Best Big Companies” published by Forbes in October 2004.

16. In April 2004, BPCL was honoured to receive the CIO 100 Honouree 2004 award for excelling in strategic enterprise that used IT strategically to deliver innovations, value and high return to its Businesses. With this ‘BPCL’ enters Asia's most prestigious index of innovative enterprises for the year 2004.

AUDITOR REPORT

1. We have audited the attached balance sheet of Nile Limited as at 31st March 2007 and also the Profit and loss account and the cash flow Statement tor the year ended on that date annexed thereto these Financial statements are the responsibility of the Companies

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Management. Our responsibility is to express an opinion on these Financial statements based on our audit. 2. We conducted our audit in accordance with the 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 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. 3. As required by the Companies (Auditors Report) Order, 2003 issued By the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, as amended from time to time, We enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order to the extent applicable to this Company. 4. 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 purposes 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 those books. (iii) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account. (iv) In our opinion, the balance sheet, profit and loss account and 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, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2007 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

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(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 2007; (b) in the case of the profit and loss account, of the profit for the year ended on that date; and (c) in the case of the cash flow statement, of the cash flows for the year ended on that date. ANNEXURE TO AUDIT REPORT DATED 17.05.2007 (Referred to in paragraph 3 of our report of even date) (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) The fixed assets have been physically verified by the management at reasonable intervals as per a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. (c) During the year, the Company has not disposed off any substantial part of its fixed assets, affecting the going concern status of the Company. (ii) (a) The inventory has been physically verified during the year by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable and adequate. (b) The procedures of physical verification of inventories followed by

the management are reasonable and adequate in relation to the size of the Company and the nature of its business.(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

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(iii) (a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. (b) The Company had taken unsecured loans and fixed deposits from 9 parties covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year in these transactions was Rs.124.00 lacs and the year-end balance of loans from such parties was Rs.36.61 lacs. (Rs.33.80 lacs of fixed deposits and Rs.2.81 lacs of unsecured loan). (c) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which the unsecured loans have been taken from the parties listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie prejudicial to the interest of the Company. (d) In our opinion and as per the information and explanations given to us, the payment of the principal amount and interest on the unsecured loans are also regular. (iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system. (v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in Sec.301 of the Act have been entered in the register required to be maintained under that Section. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Act have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. (vi) In our opinion and according to the explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under with regard to the deposits accepted from the public. No order has been passed by the

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Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. (vii) In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. (viii) According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records U/s.209( 1 )(d) of the Companies Act, 1956 to this Company. (ix) (a) According to the information and explanations furnished to us and as per records of the Company, the Company is regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, wealth-tax, service tax, custom duty, excise-duty, cess and other statutory dues as applicable to it with the appropriate authorities. According to the information and explanations give to us, the Company is not required to transfer any amount to the investor education and protection fund at present. (b) According to the information and explanations given to us, there are no undisputed arrears of statutory dues as at 31/3/2007 which are outstanding for a period of more than six months from the date they became payable. (x) The Company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year. (xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution or bank or debenture holders. (xii) Based on our examination of documents and records and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion and according to the information and explanations given to us, ihe Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to this Company.(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,

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2003 are not applicable to this Company. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. (xvi) In our .opinion, the term loans have been applied for the purpose for which the loans were obtained. (xvii) According to the information and explanations given to us and on an over all examination of the balance sheet of the Company, we report that no funds raised on short term basis have been used for long term investment. (xviii) According to the information and explanations given to us, the Company has not 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, during the period covered by our audit report, the Company has not issued any debentures and hence the provisions of clause (xix) of the Companies (Auditors Report) Order, 2003 are not applicable to this Company. (xx) According to the information and explanations furnished to us, during the period covered under audit, the Company has not raised any money by public issues. Therefore, the provisions of clause 4(xx) of the Companies (Auditors Report) Order, 2003 are not applicable to this Company. (xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

Balance sheet

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

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12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of FundsTotal Share Capital 3.00 3.00 3.00 3.00 3.00Equity Share Capital 3.00 3.00 3.00 3.00 3.00Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 14.33 11.53 12.62 14.21 16.63Revaluation Reserves 4.29 4.00 3.69 3.41 3.13Networth 21.62 18.53 19.31 20.62 22.76Secured Loans 5.94 4.66 7.90 12.11 18.24Unsecured Loans 1.89 1.98 2.64 3.86 6.05Total Debt 7.83 6.64 10.54 15.97 24.29Total Liabilities 29.45 25.17 29.85 36.59 47.05

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of FundsGross Block 24.98 22.46 23.68 26.40 27.74Less: Accum. Depreciation 9.35 8.83 10.05 11.29 12.54Net Block 15.63 13.63 13.63 15.11 15.20Capital Work in Progress 0.22 0.04 1.23 0.63 0.00Investments 0.03 0.00 0.00 0.00 0.00Inventories 12.36 13.46 21.39 21.00 30.13Sundry Debtors 3.60 3.28 4.41 8.80 13.20Cash and Bank Balance 0.17 0.17 0.24 0.26 0.67Total Current Assets 16.13 16.91 26.04 30.06 44.00Loans and Advances 4.33 3.28 1.41 1.92 3.86Fixed Deposits 0.35 0.30 0.85 0.59 0.60Total CA, Loans & Advances 20.81 20.49 28.30 32.57 48.46Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 6.69 8.40 12.05 9.69 15.56Provisions 0.77 0.59 1.26 2.01 1.05Total CL & Provisions 7.46 8.99 13.31 11.70 16.61Net Current Assets 13.35 11.50 14.99 20.87 31.85Miscellaneous Expenses 0.23 0.00 0.00 0.00 0.00Total Assets 29.46 25.17 29.85 36.61 47.05

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Contingent Liabilities 1.98 0.00 0.00 0.00 0.00Book Value (Rs) 57.73 48.40 52.03 57.33 65.39

PROFIT AND LOSS A/C

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

IncomeSales Turnover 31.33 32.42 51.42 65.11 91.89Excise Duty 4.03 3.76 6.51 8.21 11.41Net Sales 27.30 28.66 44.91 56.90 80.48Other Income 0.03 -1.78 0.02 0.11 0.03Stock Adjustments 0.79 0.07 2.40 2.48 3.89

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Total Income 28.12 26.95 47.33 59.49 84.40ExpenditureRaw Materials 17.30 16.77 31.08 41.23 61.07Power & Fuel Cost 2.19 2.36 2.81 3.08 3.62Employee Cost 2.18 2.96 3.11 3.54 4.22Other Manufacturing Expenses 1.83 2.86 4.10 3.77 4.99

Selling and Admin Expenses 1.12 1.55 1.40 1.38 1.50Miscellaneous Expenses 0.22 0.21 0.20 0.20 0.27Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 24.84 26.71 42.70 53.20 75.67

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 3.25 2.02 4.61 6.18 8.70PBDIT 3.28 0.24 4.63 6.29 8.73Interest 1.16 0.90 1.22 1.72 2.31PBDT 2.12 -0.66 3.41 4.57 6.42Depreciation 1.42 1.01 1.07 1.02 1.09Other Written Off 0.12 0.00 0.00 0.00 0.00Profit Before Tax 0.58 -1.67 2.34 3.55 5.33Extra-ordinary items 0.00 0.02 0.00 0.00 0.05PBT (Post Extra-ord Items) 0.58 -1.65 2.34 3.55 5.38Tax -0.16 -0.83 0.38 0.94 1.94Reported Net Profit 0.73 -2.57 1.95 2.61 3.41Total Value Addition 7.55 9.94 11.62 11.98 14.58Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 0.30 0.00 0.75 0.90 0.90Corporate Dividend Tax 0.04 0.00 0.10 0.13 0.14Per share data (annualised)Shares in issue (lakhs) 30.02 30.02 30.02 30.02 30.02Earning Per Share (Rs) 2.43 -8.57 6.49 8.70 11.36Equity Dividend (%) 10.00 0.00 25.00 30.00 30.00Book Value (Rs) 57.73 48.40 52.03 57.33 65.39

CASH FLOW STATEMENT

100

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 0.57 -3.40 2.33 3.55 5.35Net Cash From Operating Activities 1.17 1.95 2.22 0.56 1.40

Net Cash (used in)/fromInvesting Activities -0.18 -0.91 -1.94 -2.25 -1.39

Net Cash (used in)/from Financing Activities -0.92 -1.08 0.35 1.45 0.40

Net (decrease)/increase InCash and Cash Equivalents 0.08 -0.04 0.62 -0.24 0.41

Opening Cash & Cash Equivalents 0.44 0.51 0.47 1.09 0.85

Closing Cash & Cash Equivalents 0.51 0.47 1.09 0.85 1.26

APPENDIX 101

BIBLIOGRAPHY

During the training period, I have referred following reference books and web sites

Human resource management (Ashwat thappa) Marketing management (Kotler keller) Finance management (I M Pandey) Management information system Journals published by the BPCL’s.

www.bpcl.com www.bharatpetro.com www.crudeoil.com www.hpcl.com www.ongc.com www.bharatpetroleumcorporationlimited.com

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QUESTIONNAIRE

1) Which vehicle you owning/having? a) Two wheeler b) Four wheeler c) Both

2) Specify type of Vehicle: a) Name of two wheeler b) Name of four wheeler

3) If four wheeler, specify the fuel type: a) Petrol b) Diesel c) Speed d) Hi-speed e) If any other, please specify

4) Daily average fuel consumption by your vehicle (in litres): a) 2 wheeler b) 4 wheeler

6) What is your occupation? a) Business b) Service c) Student d) If any other, please specify 7) What is your annual household income range?

a. Below b) 15000- c) 48000- d) 120000- e) 480000- f) Above15000 48000 120000 480000 600000 600000

8) What are the facilities that are being provided to the customers in the BPCL retail outlets?

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a) Quality of fuelb) Presence of welcomer at the entryc) Cleanlinessd) Convenience stores/ shopping malle) ATM machinef) Other related products & services {oil, PUC etc.}

9) What pre-fuel filling services the customers want from each retail outlets?

a) No hindrance like roadside vendors or any otherb) Easy & wide entry at the outletsc) NO pits/ bumps/ holes on entranced) Spick & span RO/De cluttering / properly pavede) Human signals to show the path after entryf) Availability of forecourt managerg) Use of chain links/ disciplined queuingh) Good lighting facility at night

10) What fuel filling services did you consider most important while choosing petrol retail outlets?

a) Advance payment while waiting in queueb) Ceiling at top in summerc) Behaviour of employee in retail outletsd) Displaying zero reading by DSM before fuel fillinge) Water service/ windscreen cleaningf) Simultaneously air & fuel filling facilityg) No spillage of fuel while fillingh) Quick money transactioni) Quick service ( fast & friendly)

11) What post fuel filling service does BPCL provide to the customers at retail outlets?

a) Clean hygienic wash room facilityb) Air filling facilityc) Presence of exit supervisord) Easy & smooth exit

Gender: a) Male b) Female

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Age: a) 18-24 b) 25-34 c) 35-44 d) 45-59 e) 60 & Above

Place:

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