Ti - Numaligarh Refinery

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To be a vibrant, growth oriented energy company of national standing and globalreputation having core competencies in Refining and Marketing of petroleumproducts committed to attain sustained excellence in performance, safetystandards, customer care and environment management and to provide a fillip tothe development of the region. Develop core competencies in Refining and Marketing of petroleum productswith a focus on achieving international standards on safety, quality and cost. Maximise wealth creation for meeting expectations of stakeholders. Create a pool of knowledgeable and inspired employees and ensure theirprofessional and personal growth. Contribute towards the development of the region.

Notice to the Shareholders5Performance Profile8Directors' Report20Annexures to Directors' Report55Auditors' Report74Annexures to Auditors' Report76Comments of Comptroller &Auditor General of India80Balance Sheet81Profit & Loss Account82Schedules83Cash Flow Statement110Human Resource Accounting114Social Accounts115Economic Value Added116

Shri Ashok SinhaChairmanDr. B. K. DasManaging DirectorShri Dipak ChakravartyDirector (Technical)Shri Nilmoni BhaktaDirector (Finance)Shri J. P. RajkhowaDirectorShri P. C. SharmaDirector (Upto 04-12-08)Shri H. S. DasDirectorShri Ravi CapoorDirector (w.e.f. 29-01-09)Shri Manu SrivastavaDirectorShri S. RadhakrishnanDirectorShri R. K. SinghDirectorShri S. K. JoshiDirectorShri N. M. BorahDirector

BankersState Bank of IndiaHDFC Bank LimitedICICI Bank LimitedUnited Bank of IndiaUnion Bank of IndiaCanara BankUCO BankStandard Chartered BankAuditorsMessrs P. K. Mitra & Co.Chartered Accountants18, R. N. Mukherjee RoadKolkata - 700001Refinery UnitPankagrantNumaligarh Refinery ComplexGolaghat District, AssamPIN - 785699Co-ordination OfficeTolstoy House, 6th Floor15 - 17 Tolstoy MargNew Delhi - 110001Marketing OfficeDivine Plaza, 4th FloorNear Dispur Super MarketG. S. Road, Guwahati - 781006Registered Office147, UdayanR. G. Baruah RoadGuwahati - 781005

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Notice to the ShareholdersNotice is hereby given that the 16th Annual General Meeting of the Shareholders of NumaligarhRefinery Limited will be held in the Conference Hall of Hotel Brahmaputra Ashok, M.G. Road,Guwahati-781001, on Friday, the 4th September, 2009 at 3.00 P.M. to transact the followingOrdinary Business and Special Business.A. Ordinary Business1. To receive, consider and adopt the Directors’ Report and the Report on Corporate Governance,the Audited Balance Sheet as at 31st March, 2009 and Profit & Loss Account for the year ended31st March, 2009 along with the Reports of the Statutory Auditors and the Comments of theComptroller and Auditor General of India.2. To declare dividend.3. To appoint a Director in place of Shri Ashok Sinha, who retires by rotation in pursuance ofSection 256 of the Companies Act, 1956. Shri Ashok Sinha, being eligible, offers himself forre-appointment.4. To appoint a Director in place of Shri J. P. Rajkhowa, who retires by rotation in pursuance ofSection 256 of the Companies Act, 1956. Shri J. P. Rajkhowa, being eligible, offers himself forre-appointment.5. To appoint a Director in place of Shri H. S. Das, who retires by rotation in pursuance of Section 256of the Companies Act, 1956. Shri H. S. Das, being eligible, offers himself for re-appointment.6. To appoint a Director in place of Shri Manu Srivastava, who retires by rotation in pursuance ofSection 256 of the Companies Act, 1956. Shri Manu Srivastava, being eligible, offers himself forre-appointment.B. Special Business7. Appointment of DirectorTo consider and if thought fit, to pass the following Resolution, with or without modifications,as an Ordinary Resolution :“RESOLVED that Shri Ravi Capoor, IAS, Commissioner & Secretary to the Govt. of Assam, Industries& Commerce Department be and is hereby appointed as a Director of the Company.”Registered Office:147, Udayan,R.G. Baruah Road,Guwahat - 781005Date: 5th August, 2009By Order of the Board of DirectorsSd/H. K. SarmahCompany SecretaryNotes:1. Explanatory statement under Section 173 of the Companies Act, 1956, in respect of the above item of SpecialBusiness is annexed hereto.2. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies, in the alternative, toattend and vote instead of himself and such proxy need not be a member. Proxies, in order to be effective, should beduly completed & affixed with the revenue stamp and be deposited at the Registered Office of the Company not lessthan forty eight hours before commencement of the Meeting.3. In order to help us in providing appropriate answers backed by relevant financial data, the shareholders may pleasesend their queries that they would desire to raise at the AGM at least one week in advance to the Company Secretaryat the Registered Office.5

Explanatory Statement for the Special Business pursuant to Section173 of the Companies Act, 1956 :Following is the Explanatory Statement in respect of item No. 7 of the Special Businessindicated in the Notice dated 5th August, 2009.Item No. 7: Appointment of DirectorShri Ravi Capoor, IAS, Commissioner & Secretary to the Govt. of Assam, Industries &Commerce Department was appointed as Director on the Board of the Company w.e.f.29th January, 2009 in place of Shri P. C. Sharma pursuant to Article 100 of the Articlesof Association of the Company read with Section 262 of the Companies Act, 1956 inaccordance with the intentions of the Govt. of Assam.In order to make him eligible to retire by rotation pursuant to Section 255(2) of the CompaniesAct, 1956, it is proposed to appoint him as Director in the ensuing Annual General Meeting.The Company has received a notice under Section 257 of the Companies Act, 1956 froma member proposing the name of Shri Ravi Capoor as a Director of the Company. A briefresume of Shri Ravi Capoor is provided separately in the Corporate Governance Reportenclosed to the Directors’ Report. The Directors recommend appointment of Shri RaviCapoor as Director of the Company.Except Shri Ravi Capoor, no other Director is interested or concerned in the Resolution.Registered Office:147, Udayan,R.G. Baruah Road,Guwahat - 781005Date: 5th August, 20096By Order of the Board of DirectorsSd/H. K. SarmahCompany Secretary

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Performance Profile2008-09 2007-082006-072005-06 2004-05 2003-04 2002-03 2001-02 2000-01(Oct'00Mar'01)1Crude Oil Processed (TMT) :2251256825042133204222001879230710352Capacity Utilisation (%) :[Installed capacity 3000 73198216912060951Light Distillates %Production Quantity (TMT) le Distillates 556328,853.35 8,764.16 7,930.32 5,820.37 4,298.99 3,220.26 2,804.74 2,261.28811.74Heavy Ends %4Refinery Fuel and Loss as % of Crude Processed :5Market Sales (TMT) :6Manpower (Nos.):7Sales and Earnings (Rs. in Crore) :i) Sales Turnoverii) Gross Profit before Depreciation/Amortisation, Interest & 46182.95iii) 37.75132.67127.37135.6367.04iv) 592.30v) Adjustment for prior 3.61vi) Profit Before Taxvii) Tax #viii) Profit After .60# Includes Deferred Tax provision - Rs. (43.64) crore (Current year) & - Rs. (53.82) crore (Previous year)8What the Company Owned (Rs. in Crore):i) Gross Fixed Assets(including Capital Work-in-Progress)3,347.22 3,219.57 3,083.36 2,964.06 2,776.61 2,641.57 2,614.79 2,695.80 2,668.63ii) Net Fixed Assets(including Capital Work-in-Progress)2,071.31 2,086.28 2,105.35 2,226.71 2,176.09 2,178.82 2,283.58 2,492.58 2,601.59iii) Net Current Assets(including investments)iv) Intangible Assets to the extent not written offTotal Assets Net (ii iii 175.373.944.926.897.22—————2,647.03 2,611.35 2,603.27 2,683.05 2,441.28 2,609.63 2,389.60 2,541.89 2,676.96What the Company Owed (Rs. in Crore):i) Share Capitalii) Reserve & Surplusiii) Miscellaneous Expenditure to the extentnot written offiv) Net worth (i) (ii)-(iii)v) Borrowingsvi) Deferred Tax LiabilityTotal Funds Employed (iv v vi)10 Internal Generation (Rs. in Crore 2 1,508.47 —0.31—1.856.3310.042,350.65 2,244.10 2,044.97 1,691.33 1,401.46 2214.85596.19629.17 1,167.61 1,224.53 1,612.83 ——2,647.03 2,611.35 2,603.27 2,683.05 2,441.28 2,609.63 2,389.60 2,541.89 285.5190.6522.38%11 Ratios:i) Gross profit before Depreciation/Amortisation, Interest & Tax as %age ofNet Sales & Other 30%ii) Profit after Tax as %age of Average Net 90%2.74%iii) Profit after Tax as %age of Share 6.72%2.94%

iv) Average Net worth as % age of Share Capital312%292%254%210%172%145%131%120%107%v) Gross profit before Depreciation/Amortisation,Interest & Tax as % age of AverageCapital %19.39%7.19%vi) Profit Before Tax as % age of AverageCapital 5.38%0.93%vii) Profit After Tax as % age of AverageCapital 19.0515.4313.4812.6311.42viii) Long Term Debt Equity Ratio12 Earning Per Share ( Rs.)13 Book Value Per Share( Rs.)14 SOURCES AND APPLICATION OF FUNDS (Rs. In Crore)SOURCES OF FUNDSOWN :Profit after 37.97137.81131.54127.98136.1867.04Deferred Tax ders us Expenses written ROWINGS :Loans ( Net )————————163.50Decrease in Working t on account of retirement /reclassification of 65APPLICATION OF FUNDS :Capital ExpenditureAdjustment for Misc.Expenditure /Intangible 147.13183.91139.77125.0664.7452.9737.526.62Tax on distributed ayment of Loans (Net 28.90171.25DividendInvestments (Net)Increase in Working CapitalTransitional Provision for Employee Benefit15 Changes in Working Capital (Rs. in Crore) :A) Current Assets ry )36.2724.56108.3860.53Cash & Bank Balances(220.01)121.72359.4129.56(25.09) (163.51)172.23(5.61)21.43Other Current AssetsLoans & Advances, 18(43.66)276.07 (175.37)173.86Less:B ) Current Liabilities & ProvisionsCurrent LiabilitiesProvisionsC ) Working Capital ( A - B )(558.03)557.53272.73(13.03)(40.05)(58.00)61.35 214.7317.691.25161.96 72.06)169.07119.62 (165.61)324.809

Net Worth (Rs. Crore) CAGR 13.92%Turnover (Rs. Crore) CAGR 30.60%8764793058204299322028052261812Gross Profit (Rs. Crore)108853

Profit After Tax (Rs. Crore) CAGR 17.23%EPS and CEPS (Rs. per share of Rs. 10/-)9.208.856.48Shareholding Pattern11

2,2442,0451,691Book Value per share (face value Rs. 10 each)Sources of funds (Rs. 1,6568502,351Debt Equity (Rs. Crore)

Application of Funds (Rs. Crore)Distribution of Sales Value ( 103.98/bbl)Crude CostSales Tax &TransportationMTBE / PyGasRavva CrudeEntry TaxFreightCSTPurchase for ResaleGRMProductwise Sales Pattern13

Partywise %age of SalesReturn on Investment & Net Worth14

Current RatioTurnover RatiosCapacity Utilisation15

PBDIT as % of Sales841748585615648484480183Turnover and PAT16586

PAT & EPSManpower QualificationwiseManpower Functionwise17

Treated Effluent Water Quality at NumaligarhRefinery vis-a-vis National Standards201513.198.57.157.15520.50.10.35 0.26Ambient Air Quality at Numaligarh Refinery Townshipvis-s-vis National Standards15068.130300.8183

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Directors’ Report to ShareholdersYour Directors take pleasure in presenting their 16th Annual Report on performance of your Companytogether with audited statement of accounts for the financial year ended 31st March, 2009.The past year has been a roller coaster of highs and lows arising largely from volatile marketconditions. Nevertheless, your Company remained steadfast in the face of roadblocks that came inits way and managed to overcome trying circumstances to close the financial year on a positive note.Due to unprecedented rise in crude oil prices during the year, the refining margins were squeezedleading to lower profitability.As happened to other oil marketing companies, our retail marketing business also went throughrough weather this year till October, 2008 due to spiraling crude oil prices which peaked to anunprecedented level of 147 per barrel in the month of July, 2008 with no commensurate increasein retail prices leading to substantial under-recoveries. However, the situation improved fromNovember, 2008 and your company was able to register profits in retail marketing then on.FINANCIAL PERFORMANCEa) Financial ResultsDuring the year, the Company recorded highest ever sales turnover at Rs.8,853.35 crores as comparedto Rs. 8764.16 crores in 2007-08. However, the gross profit before interest, depreciation and taxreduced by 17.67% to Rs. 488.98 crores as against the previous year’s figure of Rs. 593.96 crores.The profit before tax declined by 22.64% from Rs. 413.10 crores to Rs. 319.59 crores. After providingfor tax (including deferred tax and fringe benefit tax) of Rs. 83.95 crores as against Rs. 40.29 croresduring the last year, the profit after tax showed a decline of 36.79% from Rs. 372.81 crores in theprevious year to Rs. 235.64 crores. The reduction is mainly on account of the unfavorable factorslike decrease in excise relief, reduction in duty protection rates and unfavorable spread betweencrude and product prices which are beyond the Company’s control.Dividend cheque being handed over to Hon'ble Chief Minister of Assam Shri Tarun Gogoi for the year 2007-0820

The financial results for the year 2008-2009 as compared to those of the previous year aresummarized below:Financial Results(Rs. In .3418.75106.550.01147.1325.00200.680.01Cash Flows :Inflow/(Outflow) from operationsInflow/(Outflow) from investing activitiesInflow/(Outflow) from financing (160.70)(358.78)Net Increase/(Decrease) in cash & cash equivalent(220.01)121.72Sales Turnover - GrossProfit before Depreciation & Amortisation, Interest and TaxInterestDepreciation & AmortisationProfit before TaxProvision for Taxation - CurrentProvision for Taxation - Fringe Benefit TaxProvision for Taxation - DeferredProfit after TaxBalance brought forward from the previous yearAmount available for DisposalDirectors propose to appropriate this amount as under :Appropriations:Towards DividendCorporate Dividend taxFor Transfer to General ReserveBalance carried forward to Balance SheetSummarised Cash Flow Statement :b) DividendYour Directors after taking into account the financial results of the Company during the year andkeeping in view the need to maintain strategic investments for a secure future, are pleased torecommend for your approval, a dividend of 15% (Rs.1.50 per equity share) for the year on thepaid-up share capital of Rs. 735.63 crores, which would absorb a sum of Rs. 110.34 crores out ofthe Company’s profit after tax. After providing for Rs. 18.75 crores towards corporate dividend taxand Rs. 0.01 crores carried forward to the Balance Sheet, Rs. 106.55 crores will remain for transferto the General Reserve. Accordingly, your company’s net worth as on 31st March, 2009 would standat Rs. 2350.65 crores as compared to Rs. 2244.10 crores at the end of the previous year.21

c) Operating Resultsi) NRL’s net sales turnover grew by 1.02% from a level of Rs. 8764.16 crores in the previous yearto Rs. 8853.35 crores in 2008-09. The increase in turnover is mainly due to higher productprices. Other positive factors like reduction in cost of raw material consumption due to newbenchmark price made applicable by the Government of India for the north east refinerieseffective 1.4.2008 for the crude oil purchased from OIL and ONGC, savings in interest cost,decrease in depreciation, decrease in freight and central sales tax under recovery were morethan offset by the negative factors i.e. impact of sales tax and pipeline charges on crudepayable to crude oil suppliers’ consequent to directions received from the Government ofIndia, increase in operating cost, decrease in excise relief and increase in current and deferredtax, which resulted in lowering the profit after tax.ii) The Gross Refinery Margin (GRM) was marginally higher at USD 6.98 per barrel compared toUSD 6.36 per barrel in the previous year. Adjusted GRM after accounting for freight and CSTunder-recoveries during 2008-09 was better at USD 1.21 per barrel against a negative GRMof USD 0.87 per barrel during 2007-08.iii) The Earning Per Share (EPS) stood at Rs.3.20 as compared to Rs. 5.07 during the previous year.The internal generation of cash during the year was lower at Rs. 340.02 crores as against Rs.476.67 crores in the previous year.Visit of Hon'ble Parliamentary Committee of Official Language22

d) Treasury OperationsDuring the year, term loan amounting to Rs. 27.98 crores have been repaid. Your Company continuedits focused attention towards effective utilization of available surplus funds which had helped to earnan interest income of Rs. 35.98 crores during the year. In an effort to further strengthen treasurymanagement, NRL had adopted e-payment mechanism and continued making payment of taxesand duties as well as vendors through e-payment route. During the year, long term loan to equityratio improved to 0.02 as against 0.03 in the previous year. Your Company has also been recentlyrated at ‘P1 ’ for Short Term Loans and ‘AAA/Negative’ for Working Capital Finance by CRISIL whichwould help in optimizing the treasury activities of the Company.e) Contribution to ExchequerYour Company has contributed a total of Rs. 702.29 crores to the Central Exchequer and Rs. 344.88crores to the State Exchequer in the form of taxes, duties & dividends compared to Rs. 851.81 croresand Rs. 443.51 crores respectively in the previous year.f) Cost Control InitiativesThe Company follows a system of online budgetary control through SAP/R3 ERP System foroptimization of cost whereby expenditures are monitored and controlled on a continuous basis toensure proper adherence to budget. The Company has also continued its focused initiatives towardsoptimisation in fuel and loss, conservation of energy, improvement in distillate yield, optimizationof product mix and other techno-economic parameters.g) Government Audit ReviewThe comments of theComptroller and AuditorGeneral of India (C&AG)under section 619(4) of theCompanies Act, 1956 on theaccounts of the Company forthe year ended 31st March,2009 is placed next to theStatutory Auditors Report inthe printed Annual Accounts ofthe Company. We are pleasedto report that the C&AG has nocomments upon or supplementto Statutory Auditors’ reportunder section 619(4) of theCompanies Act, 1956.Hon'ble Minister of State for Labour & Employment Shri Oscar Fernandes(extreme left) handing over the National Safety award to NRL23

Overhauling of equipment during RTA 2008 in progressPHYSICAL PERFORMANCE OF THE REFINERYDuring the year 2008-09, the refinery processed 2.25 MMT of crude oil against total crude receiptof 2.31 MMT. Crude throughput during the year was 0.25 MMT less than the MoU target at 2.50MMT primarily due to post Refinery Turn Around (RTA) stabilization problems in the refinery thatresulted in some curtailment in crude processing during the fourth quarter of the year. Capacityutilization of the refinery during 2008-09 was lower at 75.1% mainly due to planned refinery turnaround carried out during the year as against 85.6% in the previous year. Distillate yield during2008-09 at 84.72% was better than the MoU target of 84.70% and was among the highest in theindustry. Fuel and loss at 10.72% and specific energy consumption at 70.7 MBN were slightly onthe higher side due to several unplanned shutdowns during the year.During the year 2008-09, the refinery produced 1388 TMT of HSD including 287 TMT in Euro-IIIgrade. Production also included 266 TMT of MS with 49 TMT in Euro-III grade, 43 TMT of LPG,35 TMT of ATF and 196 TMT of SKO. The MS plant operated at 110% capacity during the year. TheCoke Calcination Unit operated on a sustained basis throughout the year producing 53 TMT ofcalcined petroleum coke. Against a total production of 2016 TMT, total evacuation quantity was1989 TMT representing 98.7% of production.24

Trial production of Needle Coke, a high value product, was carried out during the year in associationwith IOC (R&D). As the desired specification could not be reached, another batch of trial productionis slated during the current financial year. Success however, was achieved in trial production ofEuro-IV MS at Numaligarh refinery through in-house expertise together with assistance providedby M/s. Axens, the process licensor of the MS plant. The Numaligarh-Siliguri product pipeline wascommissioned during 2008-09 with charging of product into the pipeline in August 2008.NRL continued to maintain its high standards on the fire and safety front. There was no incidentof loss time accident (LTA) or major fire during the year. The Company achieved 12.05 million LTAfree man-hours as on 31st March, 2009 equivalent to more than 7 years and the performance iscontinuing.The year 2008-09 was the third consecutive year for NRL having successfully re-used 100% oftreated liquid effluent in the refinery as well as in the township. Liquid effluent and air qualityparameters were constantly monitored and were maintained well within the stipulated pollutioncontrol norms.The Quality Control laboratory inside the refinery, equipped with state-of-the-art testing equipmenthas performed precision analysis with high degree of accuracy. The laboratory is approved byDirectorate General of Civil Aviation (DGCA), Centre for Military Airworthiness and Certification(CEMILAC) and Directorate General of Aeronautical Quality Assurance (DGAQA). NRL’s laboratory isalso accredited to the National Accreditation Board for Calibration and Testing Laboratories (NABL)as per ISO/IEC 17025.Hon'ble Union Power Minister Shri Sushil Kumar Shinde (2nd from left) handing over the National Energy Conservationaward 2008 to NRL25

NRL is implementing a programme on Total Productivity Management (TPM) in collaboration withthe Confederation of Indian Industries (CII). Familiarization training has been imparted to theconcerned employees both in-house as well as in other refineries. A TPM Secretariat has beenestablished. Within the purview of the programme, an ‘Autonomous Maintenance’ scheme is underimplementation in the Delayed Coker Unit (DCU).Innovation as well as improvement is a part of the success story of any modern industry and NRL isa forerunner in this aspect. As a part of performance improvement measures, modification of PowerSupply in DCS and revamping of the obsolete panels of recycle gas compressor and modernization ofPLC in PSA systems have been carried out. NRL has also carried out a pilot project in the HydrogenUnit on Risk Based Inspection (RBI) techniques, which focuses on optimization of inspection andmaintenance practices.During the year 2008-09, planned Refinery Turn Around (RTA) was carried out for a period of 29 daysduring October-November, 2008. This was the second major RTA since commissioning of the refineryand was taken after a gap of three and half years of operation. All major units of the refinery, namelyCDU-VDU, DCU, HCU, H2U, SRU and CCU were under shutdown along with associated utility andoffsite installations. During the RTA, major equipment numbering more than 2000 were inspectedand necessary overhauling was carried out. Some challenging tasks like Reformer Tube replacement,Reformer Flue Gas Duct insulation renewal, Furnace Coil replacement, Column Tray renewal wereChairman's HSE&S award in the category Excellence in Green (Refinery) for the year 2007-08 being handed over to NRL26

completed in record time within the stipulated RTA schedule. One of the two Gas Turbines in thecaptive power plant was overhauled thoroughly during the RTA.Modern, sophisticated inspection techniques were adopted to determine health of critical equipment.To monitor condition of catalyst tubes as well as to predict remaining life of the Hydrogen ReformerTubes, H-scan, one of the most reliable Non Destructive Testing (NDT) technology was used as againstconventional method of Ultrasonic Attenuation Testing (UAT). Time of Flight Diffraction (TOFD)technique was also employed to inspect condition of welding and weld overlay of Hydrocrackerreactors. To monitor the tubes of High Pressure Fin Fan Cooler, Internal Rotary Inspection System(IRIS) was followed. For mapping corrosion of tank bottom plates, Acoustic Emission Testing (AET)technique was employed. Current Attenuation Testing (CAT) technique is also being continuouslyadopted in the refinery for monitoring health of underground piping.MARKETING PERFORMANCEDuring the year the Company could achieve a sales volume of 2.02 MMT of petroleum products,out of which 0.28 MMT was sold through Retail Outlets and to direct customers. Balance quantityof 1.74 MMT was sold through Oil Marketing Companies, namely Bharat Petroleum CorporationLimited (BPCL), Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation LimitedThe NRL stall at IITF 200827

(HPCL), Reliance Industries Limited (RIL) and Essar Oil Limited (EOL). Major quantity of productsamounting to 1.68 MMT was sold through NRL’s holding company M/s. BPCL. Specialty productslike RPC, CPC and Sulphur were marketed directly by NRL. Overall sale during 2008-09 was 13.29%lower than that of the previous year mainly due to lower crude processing during the year.In retail marketing, your Company has so far commissioned 108 Retail Outlets (Energy Stations) ofwhich 61 are located in the North East region out of which 36 are within the state of Assam. Duringthe year 2008-09, NRL continued its focus on ‘Quality and Quantity’ (Q&Q) and has taken varioussteps in this regard. Fifty eight Energy Stations have so far been certified by M/s Det Norske Veritas(DNV) under Q&Q protocol and 80% of NRL’s retail sales are from certified Energy Stations. NRL hasengaged M/s. DNV for third party certification of its Retail Outlets and an exhaustive Q & Q protocolhas been developed for inspection of the Retail Outlets covering over 100 different parameters.More number of Retail Outlets have been planned for certification during 2009-10. A total of 200tank trucks under NRL’s fleet are being monitored through Global Positioning System (GPS) basedmonitoring system. Additionally, 14 Energy Stations have been automated and automation jobs foranother 30 Energy Stations have been planned.In view of the extreme volatility of crude and product prices and in the wake of mounting underrecoveries in retail trade, NRL had to resort to demand management measures by cutting downNRL Energy Station28

supplies to the Retail Outlets to the level of 75% of normal sales during the period May ’08 toOctober ’08. The demand management measures were withdrawn from November ’08 when retailmargin became positive.NRL’s Product receiving and Storage terminal at Siliguri was brought to the state of readiness duringthe year 2008-09 and pumping through the Numaligarh-Siliguri Pipeline (NSPL) commenced inAugust ’08. Filling up the pipeline with around 79 TKL of HSD was a challenge particularly in thewake of Refinery Turn Around (RTA) during October - November 2008. However, towards the endof the financial year, NRL could offer entire quantity required for filling up the pipeline paving theway for full commissioning of the Terminal and the Pipeline in April 2009. Commissioning of theproduct pipeline and the terminal at Siliguri would not only ease out perennial problems in productevacuation ex-Numaligarh but also result in reduction of freight under-recoveries.MANAGEMENT DISCUSSION AND ANALYSIS REPORTIndustry Structure and DevelopmentsThe financial year that has just gone by has been a watershed in recent history in more ways than one.The world witnessed the worst economic recession in over six de

State Bank of India HDFC Bank Limited ICICI Bank Limited United Bank of India Union Bank of India Canara Bank UCO Bank Standard Chartered Bank Auditors Messrs P. K. Mitra & Co. Chartered Accountants 18, R. N. Mukherjee Road Kolkata - 700001 Refi nery Unit Pankagrant Numaligarh Refi