TERM PAPER OF ACCOUNTING FOR MANAGERS

TERM PAPER:1
HPCL- HINDUSTAN PETROLEUM CORPORATION LIMITED

Submitted to: by:

Submitted
Kamlesh Kumar Class: M.B.A [I.B] Roll: 17

Sec: 1011 Reg. No.: 11002540

Introduction
HPCL is a Fortune 500 company, with an annual turnover of Rs. 1,08,599 Crores and sales/income from operations of Rs 1,14,889 Crores (US$ 25,306 Millions) during FY 2009-10, having about 20% Marketing share in India and a strong market infrastructure. HPCL operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the other in Vishakapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-theart refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is constructing a refinery at Bhatinda, in the state of Punjab, as a Joint venture with Mittal Energy Investments Pte. Ltd. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101 Regional Offices facilitated by a Supply

& Distribution infrastructure comprising Terminals, Aviation Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets, Lube and LPG Distributorships. HPCL, over the years, has moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 MMTPA in 1984/85 to 14.8 MMTPA presently. On the financial front, the turnover grew from Rs. 2687 Crores in 1984-85 to an impressive Rs 1,16,428 Crores in FY 2008-09.

Board Of Directors
Chairman & Managing Director
Mr. S. Roy Choudhury Chairman & Managing Director Shri S. Roy Choudhury took charge as Chairman & Managing Director effective August 2010. Prior to this he was Director, Marketing between May 2004 and July 2010. Shri S. Roy Choudhury is a Mechanical Engineer from the University of Assam. He commenced his career in the Petroleum Industry with Assam Oil Company, Digboi, a subsidiary of Burma Oil Company. He Joined HPCL on 21st June, 1982 as a Construction Engineer. He has held various positions in the company in Refinery, Marketing (Operations), Projects and Sales Divisions of HPCL. These include positions such as General Manager (Supply, Operations and Distribution), General Manager (Pipelines), General Manager - Sales (West Zone). He was holding the position of Executive Director - Direct Sales prior to his appointment as Director - Marketing. He is credited with creating a Pipelines Division in HPCL and successfully completed several Pipeline

Projects and was responsible for smooth transition from APM to Non-APM era in the area of Product Supplies and Distribution. Functional Directors Mr. S. Roy Choudhury Addl Charge. Director- Marketing Shri S. Roy Choudhury continues to hold additional charge of DirectorMarketing till further advise.

Dr.V. Vizia Saradhi Director- Human Resources Dr. V Vizia Saradhi took charge as Director Human Resources effective August 03, 2007. Prior to this he was Executive Director - Industrial Relations. Dr. V. Vizia Saradhi is a post graduate in Industrial Relations & Personnel Management from the Andhra University. He joined HPCL in December 1979. Before joining HPCL, he had 4 years of experience in Bharat Heavy Plate & Vessels (BHPV). He has had a wide exposure to the petroleum industry over 28 years in Human Resources and Industrial Relations in Refineries, Marketing and Corporate Division of HPCL.

Mr.B.Mukherjee Director- Finance Shri Bhaswar Mukherjee took charge as Director Finance effective 1st February 2008. He is a fellow member of the Institute of Chartered Accountants of India. He has a wide exposure to the Petroleum Industry spanning over 30 years in the areas of Finance, Internal Audit and HR in Hindustan Petroleum Corporation Limited. . Prior to his taking over as Director (Finance), Shri B. Mukherjee was Executive Director- Corporate Finance of HPCL. He has driven the major strategy initiative of Balanced Scorecard. He is also a Director on the Board of Petronet India Ltd., a Joint Venture Company of HPCL. Mr.K. Murali Director- Refineries Shri K Murali took charge as Director Refineries effective February 02, 2009. Prior to this he was the Executive Director (Refineries) of HPCL. A Chemical Engineer, Shri Murali started his career with erstwhile Caltex Oil Company at Visakhapatnam, which was later merged with HPCL. He has wide experience in refinery operations. During his long career spanning more than 30 years, he has handled various critical positions including as head of both the refineries of HPCL at Mumbai and Visakhapatnam. During his tenure as Head of Mumbai Refinery, the refinery performnance registered improvement in all areas of operations. Low cost de-bottlenecking of units and utilization of indegeneous R&D for commercial applications was undertaken.

As Head of Corporate R&D Projects for HPCL, he has developed proposals and strategies which are under implementation. As Director- Refineries of HPCL, he has several plans to bring in world class competitiveness to both the refineries. He was instrumental in strategizing and preparing the initial Detailed Project Report for HPCL Joint Venture Refinery in Bhatinda, Punjab. Part-time ex-officio Directors Mr.P.K.Sinha Director Shri P.K. Sinha, Additional Secretary & Financial Advisor, Ministry of Petroleum and Natural Gas, Govt. of India, is a Post Graduate from Delhi School of Economics and an IAS officer of U.P. Cadre. Shri P.K. Sinha also holds M.Phil in Social Sciences and Masters Diploma in Public Administration. Shri Sinha has served both in the Central and State Governments, including as District Magistrate of Jaunpur and Agra Districts, Commissioner of Varanasi Division and Principal Secretary, Irrigation, Uttar Pradesh. Shri Sinha has also served in the Ministry of Power, Department of Youth Affairs and Sports in the Central Government before joining Ministry of Petroleum & Natural Gas. Mr.L.N.Gupta Director Shri L N Gupta, has been appointed as a Part Time Director on the HPCL Board effective June 25, 2008 Shri L N Gupta is Joint Secretary (Refineries) in the Ministry of Petroleum and Natural Gas. He is an IAS officer and has done his M.A (Economics) and MBA

from Birmingham University Shri Gupta has served the Government of Orissa as Sub Collector- Deogarh, Project Officer-DRDA - Sundergarh, Managing Director-OSTC/Orissa Textile Mills Limited, Choudwar. He has also served as Deputy Secretary to the Government of India - Department of Personnel and Training, Vice Chairman - Bhubaneswar Development Authority, Administrator - Bhubaneswar Municipal Corporation, Revenue Development Commissioner (Central) - Cuttack, Chairman and MD - Orissa Industrial Infrastructure Development Corporation, Commissioner cum Secretary Department of Steel and Mines, Chairman and MD - Orissa Hydro Power Corporation and Resident Commissioner Government of Orissa, New Delhi. Part-time non-official Directors Dr. Gitesh K Shah Director Dr. Gitesh Shah, a Scientist turned Management Expert, was appointed to the HPCL board effective December 7, 2009. Dr.Gitesh Shah has done his M.Sc., Ph.D. & D.Sc in Organic Chemistry. Dr. Shah is a Chartered Scientist, Chartered Chemist and Fellow of the Royal Society of Chemistry(RSC), London. (C.Sci., C.Chem., F.R.S.C.). He is also member of the prestigious Dr.Vikram Sarabhai Award Committee. He is based at Ahmedabad. Dr. Gitesh Shah, who is a noted Technocrat & Management Expert, has rich experience of 20 years in the field of Petrochemical, Chem-informatics, Bio-informatics and Nano Technology. He has to his credit 18 research papers in renowned international journals in the field of Chemistry and NanoTechnology. He has served as the Chairman of the Gujarat Alkalies and Chemicals Limited (GACL), Baroda. He

is Chairman of Harita Projects Private Limited, a company engaged in Infrastructure Projects and Nano-Molecules.

We Believe
Our Mission
"HPCL, along with its joint ventures, will be a fully integrated

company in the hydrocarbons sector of exploration and production, refining and marketing; focusing on enhancement of productivity, quality and profitability; caring for customers and employees; caring for environment protection and cultural heritage. It will also attain scale dimensions by diversifying into other energy related fields and by taking up transnational operations."

Our Vision
To be a World Class Energy Company known for caring and delighting the customers with high quality products and innovative services across domestic and international markets with aggressive growth and delivering superior financial performance. The Company will be a model of excellence in meeting social commitment, environment, health and safety norms and in employee welfare and relations

Financial statement of the company: