0
9TH ANNUAL REPORT
2015-2016
ONGC TERI Biotech Limited
AN ISO9001:2008;
14001:2004&18001:2007
CERTIFIED COMPANY
Reg. No. : RI91/7445
ONGC TERI Biotech Limited
1
BOARD OF DIRECTORS
Shri A. K. Dwivedi Chairman (From 11.08.2015)
(DIN07048874)
Shri Ashok Varma Chairman (Up to 11.08.2015)
(DIN06909494)
Dr. Banwari Lal Director & CEO
(DIN 01139763)
Shri M.M.Joshi Director
(DIN 01139690)
Dr. D.M.Kale Director
(DIN 01129072)
Shri R.K.Sharma Director (Up to 31.01.2016)
(DIN 05345881)
Shri Sidhartha Sur Director (From 11.05.2016)
(DIN 07513946)
STATUTORY AUDITORS
M/s Khanna & Annadhanam
Chartered Accountants,
New Delhi (Registration No: 01297N)
BANKERS
State Bank of Hyderabad,
Lodhi Road, New Delhi
REGISTERED OFFICE
ONGC TERI Biotech Limited
The Energy and Resources Institute,
Darbari Seth Block, IHC Complex,
Lodhi Road, New Delhi-110003
CIN: U74120DL2007PLC161117 Tel.: 011-24682300, 011-41504900
Fax: 011-24682144
Website: www.otbl.co.in
ONGC TERI Biotech Limited
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NOTICE
NOTICE is hereby given that the 9th Annual General Meeting of the Members of ONGC TERI Biotech
Limited will be held on Tuesday, the 27th September, 2016 at 15.30 Hrs. at 7th Floor, Conference Room,
ONGC, Jeevan Bharti Building, Tower-II, 124, Indira Chowk, New Delhi-110001, to transact the
following Ordinary Business:
1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2016 and the Statement of
Profit and Loss and Cash Flow Statement of the Company for the financial year ended on that date
together with the Reports of the Directors’ and the Auditors thereon.
2. To appoint a Director in place of Shri M. M. Joshi (DIN: 01139690) who retires by rotation and being
eligible, offers himself for re-appointment.
3. To appoint a Director in place of Dr. D. M. Kale (DIN: 01129072) who retires by rotation and being
eligible, offers himself for reappointment.
4. To ratify appointment of Statutory Auditors, M/s Khanna and Annadhanam, Chartered Accountants,
(Regn. No.001297N), New Delhi, as required under section 139 of the Companies Act, 2013 read
with the Companies (Audit and Auditors) Rules 2014 and to authorize the Board of Directors to fix
their remuneration.
By Order of the Board of Directors
for ONGC TERI Biotech Limited
Sd/-
Place: New Delhi (Dr. Banwari Lal)
Dated: 29th August, 2016 Director & CEO
(DIN 01139763)
NOTE:
1. A Member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and vote instead of
himself and the Proxy need not be a Member of the Company. Proxies in order to be effective must be received by
the Company not less than forty-eight hours before the meeting.
ONGC TERI Biotech Limited
3
DIRECTORS’REPORT
Dear Members,
Your Directors are pleased to present the 9th Annual Report together with the Audited Accounts of the
Company for the period ending on 31st March, 2016.
Financial Results
The Company has followed the Project Completion method for recognizing revenue. Based on Projects
closed, your Company during the year has generated gross revenue of Rs.2, 340.85 lakhs (Previous year -
Rs. 1,937.84 lakhs). After meeting the operational & other expenses, after tax carried forward net profit of
your Company is Rs. 816.84 lakhs (Previous year - Rs. 451.38 lakhs).
Dividend
Your Directors do not recommend payment of any dividend for the period ended 31st March, 2016.
Operations Highlights
Your Company which was set-up as a Joint-Venture of Oil and Natural Gas Corporation Ltd., (ONGC)
and The Energy and Resources Institute (TERI) continues to provide oil field services to the Oil and Gas
Industry using microbial methods primarily in four areas, namely:
1. Bio-remediation using Oilzapper Technology;
2. Microbial Enhanced Oil Recovery;
3. Application of Paraffin Degrading Bacteria (PDB) technology to prevent chocking of
Production Tubing; and
4. Wax Deposition Prevention (WDP) in flow lines.
Order Book
(i) Bioremediation Jobs
Your Company during the year successfully executed the Bio-remediation job by use of “Oilzapper”
Technology at following sites:
i) ONGC Assam Asset - 22,984 MT. of Oily Sludge
ii) ONGC Ahmedabad Asset - 8,361 MT. of Oily Sludge
iii) ONGC Ankleshwar Asset - 5,471 MT. of Oily Sludge
iv) ONGC Tripura Asset - 500 MT. of Oily Sludge
v) Reliance Industries Ltd. Nagothane - 1,000 MT. of Oily Sludge
vi) OIL India Ltd. Assam - 4,500 MT. of Oily Sludge
vii) Bharat Petroleum Corporation Ltd. - 2,400 MT. of Oily Sludge
viii) Tata Power Company Ltd. - 500 MT. of Oily Sludge
ONGC TERI Biotech Limited
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Before Bioremediation After Bioremediation
The following work orders, which are under execution by your Company, were also received during the
year:
i) ONGC Ahmedabad Asset - 60,227 MT. of Oily Sludge
ii) ONGC Mehsana Asset - 34,759 MT. of Oily Sludge
iii) ONGC Ankleshwar Asset - 3,100 MT. of Oily Sludge
iv) BPCL, Mumbai - 3,200 MT. of Oily Sludge
v) Reliance Industries, Mumbai - 3,000 MT. of Oily Sludge
vi) Numaligarh Refinery Ltd., Numaligarh - 500 MT. of Oily Sludge
Bioremediation in Progress
ONGC TERI Biotech Limited
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(ii) Microbial Enhanced Oil Recovery (MEoR)
Out of Work Order for execution of Microbial Enhanced Oil Recovery (MEoR) job in 10 wells of ONGC,
Ankleshwar Asset received by your Company during the previous year, job was completed in 6 wells
during the year while job in remaining 4 wells is under execution.
Execution of MeOR job in oil wells
(iii) Wax Deposition Prevention (WDP)/ Paraffin Degrading Bacterial (PDB)
During the year, your Company successfully completed Paraffin Degrading Bacterial (PDB) jobs Work
Orders for 19 wells of ONGC, Ankleshwar Asset, 45 wells of ONGC, Mehsana Asset and 52 wells of
ONGC Ahmedabad Asset, respectively. Out of a Work Order for PDB jobs in 45 Wells received from
ONGC, Mehsana Asset, job in 4 Wells was completed during the year while the remaining jobs were
under execution.
Execution of PDB Job Solvent Mixing for PDB Job
Rate Contract
During the year, under the Long-term three years Rate Contract with ONGC, which expired in the month
of December, your Company received work order for Bioremediation of approximately 3,000 MT of oily
sludge/oil soaked soil worth about Rs. 75 lakhs from ONGC Ankleshwar Asset. The work order is
currently under execution. The Rate Contract with ONGC has since been renewed for a further period of
two years.
ONGC TERI Biotech Limited
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Future Outlook
The order book of your Company continues to be overflowing with several proposals in pipeline and
nearing maturity.
ISO Certificate of Compliance
Your Company during the year successfully completed the 1st Surveillance Audit under the renewed
Three Years period of the Certificate issued by the International Certification Services Pvt. Ltd.,(ICS)
for its Integrated Management System for ‘Providing & Promoting Biotechnological Solutions to Oil
and Gas Industry’, being compliant with the requirements of International Standards of quality
Management System-ISO 9001:2008; Environmental Management System- ISO14001:2004 and
Occupational Health and Safety Management System-OHSAS18001:2007. The Certificate is valid up to
15th March, 2018.
Authorization of Bioremediation Services by PCB, Assam
The Pollution Control Board, Assam has given authorisation under provisions of Rules5 (4) of Hazardous
Waste (Management, Handling & Transboudary Movement) Rules, 2008 for collection, reception,
treatment, transportation & storage of Hazardous Wastes (Oily Sludge) during the Bio-remediation of
sludge pits at various sites throughout Assam, valid up to December, 2016.
Deposits
The Company has not accepted any Deposits from the public in terms of Section 73 of the Companies
Act, 2013.
Meetings of the Board of Directors
During the year ended 31st March, 2016, the Board of Directors of your Company met four times. The
dates on which the Board meetings were held are 13th May, 22nd July & 23rd October, 2015 and 12th
February, 2016.
Auditors
M/s Khanna and Annadhanam, Chartered Accountants, New Delhi, (Regd. No.001297N), were
appointment as the Statutory Auditors of the Company from the conclusion of the 7th Annual General
Meeting until the conclusion of the 12th Annual General Meeting at such remuneration as to be fixed by
the Board of Directors. Their continued appointment is to be ratified by the Members at the ensuing 9th
Annual General Meeting.
There is no qualification in the Auditors’ Report for the year ended 31st March, 2016.
Particulars of Employees
There is no employee in the Company whose particulars are required to be given in terms of the
provisions of Section 197 of the Companies Act,2013 read with Rules 5 of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
ONGC TERI Biotech Limited
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Particulars of Conservation of Energy, Technology Absorption, Foreign Exchange etc.
Your Company while providing bioremediation solutions to the Oil and Gas Industry is continuously
endeavouring to develop most energy efficient processes and devices. Wherever possible, energy
conservation measures have been implemented. Effort to conserve & optimize use of energy and absorb
new techniques is a continuous process in your Company. The Company neither earned nor spent any
foreign exchange during the accounting period ended 31st March, 2016.
Directors’ Responsibility Statement
Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to the Directors'
Responsibility Statement, the Board of Directors of the Company hereby confirms:
(i) that in the preparation of the Annual Accounts, the applicable accounting standards have been
followed;
(ii) that the accounting policies selected and applied are consistent and the judgment and
estimates made are reasonable and prudent so as to give a true and fair view of the state of
affairs of the Company at the end of the financial year and of the profit or loss of the
Company for that period;
(iii) that proper and sufficient care has been taken for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 2013 for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) that the Annual Accounts have been prepared on a going concern basis;
(v) That the internal financial controls to be followed have been laid down which are adequate
and were operating effectively; and
(vi) That proper system has been devised to ensure compliance with the provisions of all
applicable laws and that such system was adequate and operating effectively.
Extracts of Annual Return
The Extracts of Annual Return is prepared in Form MGT-9 as per the provisions of the Companies Act,
2013 and Rule 12 of Companies (Management and Administration) Rules, 2014 and the same is enclosed
as Annexure-“A” to this Report.
Corporate Social Responsibility
Your Company has constituted a Corporate Social Responsibility (CSR) Committee and has framed a
Corporate Social Responsibility Policy pursuant to enactment of the Companies Act, 2013 and
Companies (CSR Policy) Rules, 2014 .The CSR Policy has been approved by the Board of Directors, and
the same is uploaded on the Company’s website: www.otbl.co.in. As a responsible corporate citizen,
though your Company is committed to contribute to Projects leading to social and economic development
on regular basis, it is yet to identify and undertake a Project as per CSR Policy. The Annual Report on
CSR Activities is given in Annexure-“B” forming a part of this Report.
ONGC TERI Biotech Limited
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Contracts and Arrangements with Related Parties
All contracts / arrangements / transactions entered by the Company during the financial year with related
parties were in the ordinary course of business and on an arm’s length basis. There were no materially
significant related party transactions made by the Company which may have a potential conflict with the
interest of the Company at large. The details of transactions entered into with related parties are attached
as Annexure-“C” in form AOC-2 that forms an integral part of this Report.
Your Directors draw attention of the members to Note 21 to the financial statement which also sets out
related party disclosures.
Directors and Key Managerial Personnel
S/Shri A. K. Dwivedi (DIN 07048874) and Sidhartha Sur (DIN 07513946) were appointed Directors on
the Board w. e. f. 11th August, 2015and 11th May, 2016, respectively.
S/Shri Ashok Varma (DIN 06909494) and R. K. Sharma (DIN 05345881) ceased to be Directors on the
Board w. e. f. 11th August, 2015 & 31st January, 2016, respectively. Your Board of Directors places on
record its appreciation of the guidance, support and the contribution made by them during their respective
tenure they were Directors on the Board.
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Articles of
Association of the Company, Shri M. M. Joshi (DIN 01139690) and Dr. D. M. Kale (DIN 01129072),
Directors retire by rotation and being eligible, offer themselves for re-appointment.
None of the Directors are disqualified under Section 164(2) of the Companies Act, 2013.
Acknowledgements
The Directors wish to thank and deeply acknowledge the co-operation, assistance and support extended
by ONGC, TERI and other shareholders, Company’s bankers and Statutory Auditors etc. The Directors
also wish to place on record their appreciation of the contribution made at all levels by the employees of
your Company, and look forward to a long term future with confidence.
Regd. Office: On behalf of the Board of Directors
for ONGC TERI Biotech Limited The Energy and Resources Institute,
Darbari Seth Block, IHC Complex, Sd/-
Lodhi Road, New Delhi-110003
(A.K.Dwivedi)
Date: 29th August, 2016 Chairman
(DIN 07048874)
.
ONGC TERI Biotech Limited
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Annexure “A” to the Directors’ Report
Form No.MGT-9 EXTRACT OF ANNUAL RETURN AS ON THE FINANCIAL YEAR ENDED 31st MARCH, 2016
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN : U74120DL2007PLC161117
ii) Registration Date : 26th March, 2007
iii) Name of the Company : ONGC TERI Biotech Limited
iv) Category/Sub-Category of the Company : Company Limited by Shares / Public
Company
v) Address of the Registered : The Energy and Resources Institute,
Office and contact details Darbari Seth Block, IHC Complex,
Lodhi Road, New Delhi-110003
Tel.: 011-24682300, 011-41504900
Fax: 011-24682144
Website: www.otbl.co.in
vi) Whether listed Company : No
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:
All the business activities contributing 10 % or more of the total turnover of the Company:
S. No. Name and Description of main NIC Code of the % to total turnover of the Company
Product/ Service Products /Services I. Bioremediation Services of Group: 99944 90%
Cleaning of Oil Contaminated Class:999441
Soil/Sludge Sub-Class : 9994413
III. PARTICUALRS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES: Nil
IV. Shareholding Pattern:
i) Category-wise Shareholding: Sl.
No.
Category of
Shareholders
No. of Shares held
at the beginning of
the year
% Share-
holding
No. of Shares
held at the end
of the year
% Share-
holding
% Change in
Shareholding
during the year
1. Promoters:
Bodies Corporate 49,000 98 49,000 98 -
2 Individuals 1,000 2 1,000 2 -
Total 50,000 100 50,000 100
ii) Shareholding of Promoters: Sl.
No.
Shareholder’s
Name
No. of Shares held
at the beginning of
the year
% Share-
holding
No. of Shares
held at the end
of the year
% Share-
holding
% Change in
Shareholding
during the year
1 Oil and Natural
Gas Corporation
Ltd. (ONGC)
24,990 49.98 24,990 49.98 -
2 The Energy and
Resources
Institute(TERI)
24,010 48.02 24,010 48.02 -
Total 49,000 98 49,000 98 -
ONGC TERI Biotech Limited
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iii) Changes in Shareholding of Promoters during the year: No Change
iv) Shareholding Pattern of Top Ten Shareholders (Other than Directors & Promoters: Sl.
No.
Shareholder’s
Name
No. of Shares held
at the beginning of
the year
% Share-
holding
No. of Shares
held at the end
of the year
% Share-
holding
% Change in
Shareholding
during the year
1 Mr. S.K.C.Mathur 200 0.4 200 0.4 -
2. Mr. Albert Trevor 200 0.4 200 0.4 -
Total 400 0.8 400 0.8 -
v) Shareholding of Directors & Key Managerial Personnel (KMP): Sl.
No.
Shareholder’s
Name
No. of Shares held
at the beginning of
the year
% Share-
holding
No. of Shares
held at the end
of the year
% Share-
holding
% Change in
Shareholding
during the year
A. Directors:
1. Dr. Banwari Lal 200 0.4 200 0.4 -
2. Mr. Sidhartha Sur 200 0.4 200 0.4 -
3. Dr.D.M.Kale 200 0.4 200 0.4 -
B. KMP: - - - - -
Total 600 1.2 400 1.2 -
V. Indebtedness:
Neither at the beginning nor at the end of the Financial Year, the Company had any debts, secured or unsecured.
VI. Remuneration of Directors & Key Managerial Personnel:
No Director or any Key Managerial Personnel were paid any remuneration during the Financial Year, except
Dr. D.M.Kale, who was paid Rs.5,000/- as sitting fees for attending meetings of the Board of Directors.
VII. Penalties/Punishment/Compounding of Offences, if any:
Type Section of The
Companies Act
Brief Description Details of Penalty / Punishment/
Compounding fees imposed
Authority [RD
/NCLT/COURT]
Appeal made,
if any
A. Company
Penalty Punishment
Compounding
B. .Directors
Penalty
Punishment
Compounding
C. Other Officers In
Default Penalty
Punishment
Compounding
Nil
_______________________________________________________________________________________
ONGC TERI Biotech Limited
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Annexure “B” to the Directors’ Report
Annual Report on Corporate Social Responsibility (CSR) Activities
[Pursuant to clause (o) of sub-section (3) of Section 134 of the Act and
Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014]
1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to
be undertaken and a reference to the web-link to the CSR policy and projects or programs:
Your Company’s CSR Policy is guided by the philosophy to care for the environment through sustainable
utilization of natural resources. As a responsible corporate citizen, your Company will try to contribute for
social and economic development on regular basis, maintaining highest standards of corporate behaviour
towards it employees, consumers and societies in which it operates. The overall CSR mission of your
Company is aligned to strengthen people and planet by devising effective solutions for the community at
large, to ensuring socio-economic development of the community through different participatory and need-
based initiatives in the best interest of the poor and deprived sections of the society so as to help them to
become self reliant and build a better tomorrow for themselves, and as well to ensuring environmental
sustainability through ecological conservation and regeneration, energy efficiency measures,
biotechnological interventions, renewable technology interventions, protection and re- growth of
endangered plant species and promoting biodiversity. Your Company’s detailed CSR Policy is stated on
Website: www.otbl.co.in.
2. The Composition of the CSR Committee: 1. Shri M. M. Joshi – Chairman
2. Shri A. K. Dwivedi-Member
3. Dr. Banwari Lal-Member
3. Average net profit of the Company for last three financial years: Rs.642.82 lakhs.
4. Prescribed CSR Expenditure (two per cent of the average net profit): The Company is required to
spend Rs.12.86 lakhs towards CSR during the financial year 2015-16.
5. Details of CSR spent during the financial year 2015-16.
(a) Total amount to be spent for the financial year 2015-16: Rs. 24.53 lakhs
(b) Amount unspent, if any: Rs. 24.53 lakhs
(c) Manner in which the amount spent during the financial year 2015-16: NA
6. In case the company has failed to spend the two per cent of the average net profit of the last three
financial years or any part thereof, the company shall provide the reasons for not spending the
amount in its Board report.
Due to paucity of available time subsequent to the approval accorded by the Board and the close of the
financial year 2015-16, despite earnest efforts not much progress could be achieved in identifying Projects
& allocating funds for fulfilling & meeting CSR obligations. Your Company is actively pursuing effective
steps to identify Projects that would ensure long term impactful contributions towards the upliftment of the
underprivileged in the Society.
ONGC TERI Biotech Limited
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Annexure “C” to the Directors’ Report
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013
and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the Company with related
parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm’s
length transactions under third proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s length basis: Nil
(a) Name(s) of the related party and nature of relationship
(b) Nature of contracts/arrangements/transactions
(c) Duration of the contracts / arrangements/transactions
(d) Salient terms of the contracts or arrangements or transactions including the value, if any
(e) Justification for entering into such contracts or arrangements or transactions
(f) Date(s) of approval by the Board
(g) Amount paid as advances, if any:
(h) Date on which the special resolution was passed in general meeting as required under first proviso
to Section 188
2. Details of material contracts or arrangement or transactions at arm’s length basis
(a) Name(s) of the related party and nature of relationship Oil and Natural Gas Corporation Limited- JV Partner
The Energy and Resources Limited- JV Partner
(b) Nature of contracts/arrangements/transactions
Oil and Natural Gas Corporation Limited- Providing of Bioremediation Solutions & Rental
Payment of Premises Occupied
The Energy and Resources Limited- Purchase of “OILZAPPER”
(c) Duration of the contracts / arrangements/transactions:
Oil and Natural Gas Corporation Limited- Need Based
The Energy and Resources Limited- Need Based
(d) Salient terms of the contracts or arrangements or transactions including the value, if any:
Oil and Natural Gas Corporation Limited- Rs. 185, 324,939/-
The Energy and Resources Limited- Rs.48,783,460/-
(e) Date(s) of approval by the Board, if any:
Not required as all transactions were at arms’ length price and were in ordinary course of Business
(f) Amount paid as advances, if any: – Nil
ONGC TERI Biotech Limited
13
Independent Auditor’s Report
To the Members of ONGC Teri Biotech Limited Report on the Standalone Financial Statements We have audited the accompanying Standalone Financial Statements of ONGC Teri Biotech Limited (‘the Company’), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Standalone Financial Statements The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position, financial performance and cash flows of the
Company in accordance with the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that are operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the Audit Report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures
in the Financial Statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal financial control relevant to the
Company’s preparation of the Financial Statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of the accounting estimates made by the Company’s
Directors, as well as evaluating the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Standalone Financial Statements.
ONGC TERI Biotech Limited
14
Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, its profit and its cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure “A” a statement on the matters specified in the Paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that: (a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit. (b) 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; (c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account; (d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31 March 2016 taken
on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in Annexure “B”.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position ;
ii. The Company does not have any long term contracts including derivative contracts; as such the
question of commenting on any material foreseeable losses thereon does not arise.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
for Khanna & Annadhanam
Chartered Accountants
(Registration No: 01297N) Sd/-
(Kapil Miglani)
Place: New Delhi Partner
Date: 11th May, 2016 (Membership No: 527679)
ONGC TERI Biotech Limited
15
Annexure “A” to the Independent Auditors’ Report
The Annexure referred to in Independent Auditors’ Report to the members of the Company on the Standalone Financial Statements for the year ended 31st March 2016, we report that:. On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of the Audit, we report that: (i) (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
(b) As explained to us, fixed assets have been physically verified by the Management at regular
intervals and as informed to us no material discrepancies were noticed on such verification. In
our opinion, this periodicity of physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
(c) The Company does not have any Immovable Property registered in its name. Hence, the question
of verification of the title deeds thereof does not arise. (ii) The nature of business of the Company does not require it to have any inventory. Hence, the
requirement of clause (ii) of paragraph 3 of the said order is not applicable to the Company. (iii) According to the information and explanations given to us and on the basis of our examination of the
Books of Accounts, the Company has not granted any loans, secured or unsecured to companies,
firms, Limited Liability Partnerships or other parties covered in the register maintained under section
189 of the Companies Act. Accordingly, the paragraphs 3(iii) (a) and 3(iii) (b) of the Order are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has not
given any loans, made investments, given guarantees or security during the year which is covered
under provisions of Section 185 and 186 of the Act.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of
the Act, for any of the services rendered by the Company.
(vii) a) According to the information and explanations given to us and on the basis of our
examination of records of the Company, amounts deducted/accrued in the Books of
accounts in respect of undisputed statutory dues including provident fund, income tax,
sales tax, value added tax, duty of customs, service tax, cess and other material statutory
dues have been regularly deposited during the year by the Company with the appropriate
authorities. As explained to us, the Company did not have any dues on account of
Employees’ State Insurance and duty of excise.
According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, income tax, sales tax, value added tax, duty of
custom, service tax ,cess and other material dues were in arrears as at 31st March, 2016 for
the period of more than six months from the date they become payable.
b) According to the information and explanations given to us and based on the records
of the Company examined by us, there are no dues of Income Tax, Service Tax etc. which
have not been deposited on account of any disputes.
ONGC TERI Biotech Limited
16
(viii) The Company does not have any loans or borrowing from any financial institutions, banks,
government or debenture holders during the year. Accordingly, paragraph 3 (vii) of the Order is not applicable.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including
debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) According to the information and explanation given to us, no material fraud by the Company or on
the Company by its officers or employees has been noticed or reported during the course of our audit. (xi) According to the information and the explanations given to us and based on our examination of the
records of the Company, the Company has not paid/provided for any managerial remuneration to its personnel. Hence, the clause relating to compliance of provisions of Section 197 read with Schedule V of the Act does not arise.
(xii) In our opinion and according to information and explanation given to us, the Company is not a Nidhi
Company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records
of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act
1934.
for Khanna & Annadhanam
Chartered Accountants
(Registration No: 01297N) Sd/-
(Kapil Miglani) Place: New Delhi Partner
Date: 11th May, 2016 (Membership No: 527679)
ONGC TERI Biotech Limited
17
Annexure “B” To the Independent Auditor’s Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143
of the Companies Act, 2013 (“the Act”)
We have audited the Internal Financial Controls over Financial Reporting of ONGC TERI Biotech
Limited (“the Company”) as of March 31, 2016 in conjunction with our audit of the Standalone Financial
Statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls
based on “the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting issued by the Institute of Chartered Accountants of India”. These
responsibilities include the design, implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's Internal Financial Controls over Financial
Reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate Internal Financial Controls over
Financial Reporting was established and maintained and if such controls operated effectively in all
material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy
of the Internal Financial Controls System over Financial Reporting and their operating effectiveness. Our
audit of Internal Financial Controls over Financial Reporting included obtaining an understanding of
Internal Financial Controls over Financial Reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s Internal Financial Controls System over Financial Reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's Internal Financial Control over Financial Reporting is a process designed to provide
reasonable assurance regarding the reliability of Financial Reporting and the preparation of Financial
Statements for external purposes in accordance with generally accepted accounting principles. A
Company's Internal Financial Control over Financial Reporting includes those policies and procedures
that:
ONGC TERI Biotech Limited
18
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorisations
of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the company's assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of Internal Financial Controls over Financial Reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the Internal Financial
Controls over Financial Reporting to future periods are subject to the risk that the Internal Financial
Control over Financial Reporting may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate Internal Financial Controls System
over Financial Reporting and such Internal Financial Controls over Financial Reporting were operating
effectively as at March 31, 2016, based on “the Internal Control over Financial Reporting criteria
established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of
Chartered Accountants of India”.
for Khanna & Annadhanam
Chartered Accountants
(Registration No: 01297N) Sd/-
(Kapil Miglani)
Place: New Delhi Partner
Date: 11th May, 2016 (Membership No: 527679)
ONGC TERI Biotech Limited
19
BALANCE SHEET AS AT 31ST MARCH, 2016
PARTICULARS
NOTE NO. CURRENT YEAR
(31.03.2016)
(In Rs.)
PREVIOUS YEAR
(31.03.2015)
(In Rs.)
I. EQUITY AND LIABILITIES
1 Shareholders’ funds
Share Capital 2 500,000 500,000
Reserve and Surplus 3 288,801,477 207,117,329
2 Non-current liabilities
Long-term Provisions
4
627,747
503,727
3 Current liabilities
Trade payables 20,991,435 27,964,808
Deferred tax liabilities (Net)
_ _
Other current liabilities 5 224,765,439 260,009,279
Short term provisions 6 9,426,465 2,067,276
545,112,563 498,162,419
II. ASSETS
1 Non-current assets
Fixed Assets
- Tangible Assets 7 3,977,248 4,831,557
Deferred Tax Assets (Net) 360,525 230,578
Long Term Loan and Advances 8 5,520,152 3,976,823
2 Current assets
Trade Receivables 9 73,819,749 175,262,265
Cash and Cash Equivalents 10 312,800,289 173,883,587
Short Term Loan and Advances 11 5,565,328 7,275,258
Other Current Assets 12 143,069,272 132,702,351
545,112,563 498,162,419
Significant Accounting Policies 1
The accompanying Notes are significant part of the Financial Statements (16 to 24) As per our report of even date
For KHANNA & ANNADHANAM
CHARTERED ACCOUNTANTS
( Firm Reg. No. 01297N)
Sd/- Sd/- Sd/- Sd/-
(KAPIL MIGLANI) (H.C. CHAUHAN) (A.K.DWIVEDI) (BANWARI LAL) PARTNER MANAGER-F&A
(M. No. 527679)
CHAIRMAN
(DIN 07048874)
DIRECTOR & CEO
(DIN 01139763)
PLACE :NEW DELHI
DATED: 11th May, 2016
ONGC TERI Biotech Limited
20
STATEMENT OF PROFIT & LOSS ACCOUNT FOR THE PERIOD ENDED 31ST MARCH, 2016
PARTICULARS NOTE
NO.
CURRENT YEAR
(31.03.2016)
(In Rs.)
PREVIOUS YEAR
(31.03.2015)
(In Rs.)
I. Revenue from projects 210,693,989 179,836,832
II. Other Income 13 23,391,763 13,947,694
III. Total Revenue (I+II) 234,085,752 193,784,526
IV. Expenses :
Costs on projects
90,621,419 90,300,551
Employee benefits expense
14 10,564,340
10,336,686
Other expenses
15 8,682,485
24,830,041
Depreciation
7 1,084,484
1,202,263
Total Expenses 110,952,728 126,669,541
V. Profit before Extraordinary items and tax(III-IV) 123,133,024
67,114,984
VI.
VII.
VIII.
Extraordinary items
Profit before tax (V-VI)
Tax expense:
630,896
122,502,128
40,947,927
-
67,114,984
22,121,517
Current tax
(129,947)
(144,790)
Deferred tax asset
IX. Profit after tax (VI -VIII) 81,684,148 45,138,257
X. Earning Per Equity Share
Basic & Diluted 1,634 903
Significant Accounting Policies 1
The accompanying Notes are an integral part of the Financial Statements (16-24) As per our report of even date
for KHANNA & ANNADHANAM
CHARTERED ACCOUNTANTS
( Firm Reg. No. . 01297N) Sd/- Sd/- Sd/- Sd/-
(KAPIL MIGLANI) (H.C.CHAUHAN)
(A.K.DWIVEDI) (BANWARI LAL)
PARTNER MANAGER-F& A
(M. No. 527679)
CHAIRMAN
(DIN 07048874)
DIRECTOR & CEO
(DIN 01139763)
PLACE :NEW DELHI DATED : 11th May, 2016
ONGC TERI Biotech Limited
21
CASH FLOWS STATEMENT FOR THE PERIOD ENDED 31ST MARCH, 2016
PARTICULARS CURRENT YEAR
(31.03.2016)
(In Rs.)
PREVIOUS YEAR
(31.03.2015)
(In Rs.)
Cash Flow from Operating Activities
Net Profit after Tax
81,684,148
45,138,257
Adjustments for:
Depreciation 1,084,484 1,202,263
Operating Profit before working capital changes
82,768,632
46,340,521
Adjustments for:
(Increase) / Decrease in Current Assets 91,242,196 (117,319,590)
Increase / (Decrease) in Current Liabilities (34,734,004) 80,124,346
Deferred Tax Assets (129,947) (144,790)
Net Cash from Operating Activities 'A' 139,146,877 139,146,877 9,000,487
Cash Flow from Investing Activities
Purchase of Fixed Assets (230,175) (702,575)
Net Cash utilised in Investing Activities 'B' (230,175) (702,575)
Cash Flow from Financing Activities
Net Cash utilised in Financing Activities 'C' - -
Net Increase / (Decrease) in Cash and Cash
Equivalents (A+B+C)
138,916,702 8,297,912
Opening Cash and Cash Equivalents 173,883,587 165,585,675
Closing Balance of Cash and Cash Equivalents 312,800,289 173,883,587
Cash and Cash Equivalents comprise:
Cash and Bank Balance 312,800,289 173,883,587
312,800,289 173,883,587
As per our report of even date
for KHANNA & ANNADHANAM
CHARTERED ACCOUNTANTS
( Firm Reg. No. 01297N)
Sd/- Sd/- Sd/- Sd/-
(KAPIL MIGLANI) (H.C. CHAUHAN) (A.K.DWIVEDI ) (BANWARI LAL)
PARTNER MANAGER- F & A
(M. No. 527679)
CHAIRMAN
(DIN 07048874)
DIRECTOR & CEO
(DIN 01139763)
PLACE :NEW DELHI
DATED : 11th May, 2016
ONGC TERI Biotech Limited
22
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH, 2016
1 SIGNIFICANT ACCOUNTING POLICIES
a)
Basis of Preparation
The Company has followed mercantile system of accounting and recognizes Income &
Expenditure on accrual basis. The accounts are prepared on historical cost basis, as a going
concern and are consistent with the generally accepted accounting principles.
b) Use of Estimates
The preparation of financial statements requires estimates and assumptions which affect the
reported amount of assets, liabilities, revenues and expenses of the reporting period. The
difference between the actual results and estimates are recognized in the period in which the
results are known or materialized.
c) Fixed Assets / Depreciation
d)
Fixed Assets are stated at historical cost less accumulated depreciation and impairment loss,
if any. Temporary site installations for execution of job are expensed as project expenditure
in the year in which they are incurred. Depreciation on Fixed Assets has been provided on
written down value basis according to the useful lives specified under Schedule II of the
Companies Act, 2013.
Impairment
The carrying amounts of assets are reviewed at each Balance Sheet date to assess
impairment, if any based on internal / external factors. An asset is treated as impaired when
the carrying cost of the asset exceeds its recoverable value being higher of value in use and
net selling price. An impairment loss is recognised as an expense in the Statement of Profit
& Loss in the year in which an asset is identified as impaired. The impairment loss
recognised in prior accounting period is reversed if there has been an improvement in
recoverable amount.
e) Revenue Recognition
Revenue is recognised based on the nature of activity when consideration can be reasonably
measured and there exists reasonable certainty of its recovery. Revenue from projects and
costs are recognised based on substantial completion of the related projects and is billed in
accordance with the contractual terms specified in the contract/agreement.
ONGC TERI Biotech Limited
23
f) Employee Benefits
g)
h)
i)
a) Employee benefits in the form of Provident Fund are charged to the Profit and Loss
Account of the year when the contributions to the respective funds are due. There are
no other obligations other than the contribution payable to the respective funds.
b) Gratuity liability is accrued and provided for on the basis of an actuarial valuation on
the projected unit credit method made at the end of the financial year.
c) Short term compensated absence are provided for based on estimates. Long term
compensated absences in the form of leave encashment are provided for based on
actuarial valuation at the end of the financial year. The actuarial valuation done as per
projected unit credit method.
d) Actuarial gains/losses are debited to profit and loss account and are not deferred.
Project Expenses
All direct expenses incurred towards execution of job as well as other general
administrative expenses incurred at site are allocated to the activities /job and charged
/treated in profit and loss statement accordingly.
Taxes on Income
a) Tax expense for the period, current tax and deferred tax is included in determining the
net profit (loss) for the period.
b) Deferred tax is recognised for all timing difference between the accounting income
and taxable income and is quantified using the enacted/substantially enacted tax rates
as at the balance sheet date.
c) Deferred Tax Assets are recognised where realisation is reasonably certain where as in
case of carried forward losses or unabsorbed depreciation, deferred tax assets are
recognised only if there is a virtual certainty of realisation backed by convincing
evidence. Deferred Tax assets are reviewed for the appropriateness of their respective
carrying value at each Balance Sheet date.
Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when
there is a present obligation as a result of past events and it is probable that there will be an
outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial
statements.
ONGC TERI Biotech Limited
24
CURRENT YEAR PREVIOUS YEAR (31.03.2016) (31.03.2015)
(In Rs.) (In Rs.)
2 SHARE CAPITAL
AUTHORISED
10,00,000 Equity Shares of Rs.10/- each 10,000,000 10,000,000
10,000,000 10,000,000
ISSUED, SUBSCRIBED AND PAID UP
50,000 Equity Shares of Rs.10/-each fully
paid up
500,000 500,000
500,000 500,000
a) The Company has issued only one class of shares referred to as equity shares having a
par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.
b) Details of Equity Shareholders holding more than 5 percent Shares:
Oil and Natural Gas Corporation ( ONGC) 24,990 24, 990
Percentage 49.98 49.98
The Energy and Resources Institute (TERI) 24,010 24,010
Percentage 48.02 48.02
3 RESERVES AND SURPLUS
Opening balance
Less: Adjustment towards depreciation
207,117,329
-
162,060,260
81,188 Add: Net Profit/(Net Loss) for the current year 81,684,148 45,138,257
Closing balance 288,801,477 207,117,329
ONGC TERI Biotech Limited
25
4
LONG TERM PROVISIONS
Leave Encashment Payable
Gratuity Payable
CURRENT YEAR
(31.03.2016)
(In Rs.)
292,012
335,735
PREVIOUS YEAR
(31.03.2015)
(In Rs.)
242,385
261,342
627,747 503,727
5
OTHER CURRENT LIABILITIES
- Billing - Ongoing Projects
- Expenses Payable
- TDS Payable
- Employee contribution to Provident Fund
- Other Liabilities
223,450,603
1,181,662
132,174
-
1,000
258,930,076
769,177
287,420
21,606
1,000
224,765,439 260,009,279
6 SHORT TERM PROVISIONS
- Leave Encashment Payable
- Gratuity Payable
14,267
12,359
14,010
4,646 - Provision for Taxation 120,219,585
Less:- Advance Tax/TDS 110,819,746 9,399,839 2,048,620
9,426,465 2,067,276
8 LONG TERM LOANS AND ADVANCES
- Security Deposit Against Projects 5,466,802 3,913,473
- Security Deposit Others 53,350 63,350
5,520,152 3,976,823
ONGC TERI Biotech Limited
26
CURRENT YEAR
(31.03.2016)
(In Rs.)
PREVIOUS YEAR
(31.03.2015)
(In Rs.)
9 TRADE RECEIVABLES (Unsecured considered good)
Trade receivables exceeding six months
23,154,098
11,270,348 Others 50,665,651 163,991,917
73,819,749 175,262,265
10 CASH AND CASH EQUIVALENTS
- Cash-in-Hand
715
715 - Balance with Scheduled Bank 586,523 290,619
- Fixed Deposit
- held as margin money 25,046,162 50,487,554
- others 287,166,889 123,104,699
312,800,289 173,883,587
11 SHORT TERM LOANS AND ADVANCES
(Unsecured considered good)
- Advance to Suppliers/Others - -
- Advance to Staff
- Tax Deducted at Source(against ongoing
projects
-Income Tax Refundable
-Cenvat Credit
3,012
5,108,215
438,151
15,950
20,253
6,716,829
438,151
100,025 5,565,328 7,275,258
12 OTHER CURRENT ASSETS
- Expenses- Ongoing Projects 132,342,737 128,417,734
- Interest accrued on Fixed Deposit 10,669,395 4,225,067
- Prepaid Expenses 57,140 59,550
143,069,272 132,702,351
ONGC TERI Biotech Limited
27
CURRENT YEAR PREVIOUS YEAR
(31.03.2016) (31.03.2015)
(In Rs.) (In Rs.)
13 OTHER INCOME
- Interest on Fixed Deposit
- Liabilities no longer required written back
22,980,887
410,876
13,792,086
155,608
23,391,763 13,947,694
14 EMPLOYEE BENEFITS EXPENSES
Staff salary, allowances and reimbursement 9,684,961 8,995,866
Employer's contribution to PF and admin.
charges
309,805 314,868
Group Insurance 271,757 289,657
Staff Welfare & Training Expenses
- Leave Encashment Expenses
- Gratuity Expenses
125,327
49,884
122,606
213,912
256,395
265,988
10,564,340 10,336,686
15 OTHER EXPENSES
Web development & Maintenance Charges
18,668
5,356 Rent-Project / Site office 594,382 674,095
Books & Periodicals 4,950 3,332
Telephone/Internet Expenses 142,007 136,668
Courier charges 33,877 40,936
Electricity charges 75,373 79,683
Professional / Consultancy/legal fees 3,029,882 3,134,403
Travelling & Conveyance 2,955,190 3,096,611
Vehicle Running and Maintenance Expenses 311,277 305,865
Bank Charges 109,777 457,629 Miscellaneous / Sundry Expenses 247,134 18,918
Printing Stationery & Computer supplies 212,751 151,503
Repair & Maintenance-Others 566,152 232,240
Taxes & Fees 59,314 7,563
Advertisement, Publicity & Business Promotion 211,751 231.361
Auditors Remuneration 110,000 147,117
Service Tax paid for earlier years (including
interest)
- 16,106,761
8,682,485 24,830,041
ONGC TERI Biotech Limited
28
CURRENT YEAR PREVIOUS YEAR
(31.03.2016) (31.03.2015)
(In Rs.) (In Rs.)
16 CONTINGENT LIABILITIES
Claims against the company not
acknowledged as debts
i) Outstanding performance guarantees 37,403,4018 36,534,875
issued by the company bankers
(secured against Fixed Deposits under
Lien)
ii) Estimated amount of contracts remaining
to be executed to the Capital Account (net
of advances)
iii) Tax demand under disputes 7,572,050 -
(Also Refer Point (a))
24,695,845
-
12,804,250
37,403,418
-
7,572,050
37,500,095 44,975,468
Additional Information
(a) The department has on conclusion of assessment for A.Y. 2012-13 to 2015-16 raised
demands aggregating to Rs. 128.04 lacs (including interest) against which no provision
exists since the demand have come to be raised owing to short allowance of taxes deducted
at source. Provision for the demands raised has not been considered, pending disposal of
rectification application for the A.Y. 2012-13 and for others pending filing of the
rectification application, issues being similar for all the years.
17 Disclosure for Gratuity and Leave Benefit plans
The Company has a defined benefit gratuity plan. The present value of obligation is
determined based on actuarial valuation using the projected unit method, which recognizes
each period of services as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The obligation for leave
encashment is recognized in the same manner as gratuity.
(i) Changes in the present value of defined benefit obligations are as under:
Particulars Gratuity Leave Encashment
2015-16 2014-15 2015-16 2014-15
Opening defined benefit 265,988 - 256,395 -
Interest cost/ current year 90,096 265,988 80,083 256,395
Annual return on plan assets - - - -
Benefit paid (40,500) - (27,690) -
Actuarial gain/loss on 32,510 - (2,509) -
Closing defined benefit obligation 348,094 265,988 306,279 256,395
ONGC TERI Biotech Limited
29
(ii) Changes in the fair value of plan assets are as follows:
Particulars Gratuity Leave Encashment
2015-16 2014-15 2015-16 2014-15
Opening fair value of plan assets - - - -
Expected returns - - - -
Contributions by employer - - - -
Benefit paid - - - -
Actuarial gain/losses - - - -
Closing fair value of plan assets - - - -
(iii) Net employee benefit expense debited to Profit and Loss Account:
Particulars Gratuity Leave Encashment
2015-16 2014-15 2015-16 2014-15
Interest cost/ current year 90,096 265,988 80,083 256,395
Expected return on plan assets - - - -
Actuarial gain/loss on 32,510 - (2,509) -
Net benefit expense to P&L 122,606 265,988 77,574 256,395
Actual return on plan assets - - - -
(iv) Actuarial Assumptions:
Particulars Gratuity Leave Encashment
2015-16 2014-15 2015-16 2014-15
Mortality Table IALM-
2006-08
- IALM-
2006-08
-
Discount Rate 8.00% 7.75% 8.00% 7.75%
Expected rate of return on plan - - - -
Rate of escalation in salary per 5.50% 5.25% 5.50% 5.25%
The estimates of future salary increase considered in actuarial valuation take into account the
inflation, seniority, promotion and other relevant factors such as demand in the employment
market and supply.
ONGC TERI Biotech Limited
30
18 CSR
Gross amount required to be spent by the Company during the year is Rs. 12 85,643/- (Previous
year Rs. 11, 67,314)
Amount Spent during the year Spent Unspent Total
Construction/acquisition of any asset Nil Nil Nil
On purpose other than above Nil Nil Nil
Expenditure related to Corporate Social Responsibility is as per Section 135 of the Companies
Act, 2013 read with Schedule VII thereof.
19 JOINT VENTURES / ASSOCIATES
The Company is a joint venture company formed by Oil and Natural Gas Corporation Limited
in association with The Energy and Research Institute, New Delhi (a Society formed and
registered in Societies Registration Act, 1860).
20 CONFIRMATION OF BALANCES
(a) Interest Income has been accounted for based upon the certificate issued by the bankers.
(b) The balances in parties’ accounts as at 31st March, 2016 are subject to confirmation/
reconciliation in some of the cases. Adjustments, if any, upon due reconciliation thereof is
proposed to be accounted for in future. The management, however, is of the view that the
impact of adjustment entries, if any, would not be significant.
ONGC TERI Biotech Limited
31
21 RELATED PARTY DISCLOSURES
Key Managerial Personnel (KMP)
Dr. Banwari Lal (C.E.O)
Investing Entities (JV Partners)
Oil and Natural Gas Corporation Ltd. (ONGC)
The Energy & Resources Institute, New Delhi (TERI)
Details of Transactions
Transactions Joint Ventures KMP
CURRENT
YEAR (In Rs.)
PREVIOUS
YEAR (In Rs.)
CURRENT
YEAR (In Rs.)
PREVIOUS
YEAR (In Rs.)
Services Provided:
ONGC
(based on invoicing)
184,950,640 260,974,788 Nil Nil
Purchases /Services availed:
TERI
(based on invoicing)
48,783,460 51,553,413 Nil Nil
ONGC (Rent) 318,522 313,005 Nil Nil
Electricity Charges
Paid
55,777 62,248 Nil Nil
Amount Receivable:
ONGC Ltd. 70,082,402 163,359,060 Nil Nil
Amount Payable
TERI 11,522,500 10,665,500 Nil Nil
Key Management Personnel
No remuneration was paid to key management personnel during current as well as previous year.
ONGC TERI Biotech Limited
32
CURRENT YEAR PREVIOUS YEAR
(31.03.2016) (31.03.2015)
(In Rs.) (In Rs.)
22 AUDITOR’S REMUNERATION
The details of Auditors remuneration is as under:
Audit Fees 75,000 75,000
Certification work & other services 25,000 47,700
Out of Pocket Expenses & Service Tax 25,950 24,417
23 EXPENDITURE INCURRED IN FOREIGN CURRENCY
Receipts in Foreign Currency - 8,412,265
Expenditure in Foreign Currency (Travel) - 19,080
24 Previous Year’s figures have been regrouped / rearranged to make them comparable with the
current year’s figures.
As per our report of even date
For KHANNA & ANNADHANAM
CHARTERED ACCOUNTANTS
(Firm Reg. No: 01297N)
Sd/- Sd/- Sd/- Sd/-
(KAPIL MIGLANI) (H.C.CHAUHAN) (A.K.DWIVEDI) (BANWARI LAL)
PARTNER MANAGER- F & A
M. No : 527679
CHAIRMAN
(DIN 07048874)
DIRECTOR &CEO
(DIN 01139763)
Place : New Delhi
Date : 11th May,2016
125,950 147,117
- 8,431,345
ONGC TERI Biotech Limited
33
NOTE-7
Fixed Asset Schedule as on 31.03.2016
Particulars Gross Block Depreciation Net Block
As on
31.03.2015
Additions
during
the
period
Deletions/
Adjustment
during the
period
As on
31.03.2016
Up to
31.03.2015
For the
Period
Adjustment
during the
period
Up to
31.03.2016
As on
31.03.2016
As on
31.03.2015
Computer
649,454
-
-
649,454
389,437
163,353
-
552,790
96,664
260,017
Equipment
and Field
Installations
7,712,727
230,175
_
7,942,902
3,292,937
877,438
-
4,170,375
3,772,527
4,419,790
Furniture
373,191
_
_
373,191
221,441
43,693
-
265,134
108,057
151,750
TOTAL
8,735,372
230,175
-
8,965,547
3,903,816
1,084,484
-
4,988,299
3,977,248
4,831,557
P .Year
8,463,834
702,575
431,037
8,735,372
3,051,400
1,202,263
349,848
3,903,816
4,831,557
5,412,434
ONGC TERI Biotech Limited
34
ONGC TERI Biotech Limited Darbari Seth Block, IHC Complex, Lodhi Road, New Delhi-110003
CIN: U74120DL2007PLC161117 Tel.: 011-24682300, 011-41504900; Fax: 011-24682144; Website: www.otbl.co.in
FORM OF PROXY
(To be filled in and signed by the Shareholder)
Regd. Folio No.:____________
No. of Shares: ______________
I/We____________________________resident/s of__________________________________being a shareholder/s
of ONGC TERI Biotech Limited, hereby appoint Shri/Smt._____________________resident of
___________________________ or failing him/her Shri/Smt._____________________resident of
___________________________ or failing him/her Shri/Smt._____________________resident of
___________________________ as my/our proxy to vote for me/us and on my/our behalf at the 9th Annual General
Meeting of the shareholders of the Company to be held on Tuesday, the 27th September,2016 at 15.30 Hrs. at 7th
Floor, Conference Room, ONGC, Jeevan Bharti Building, Tower-II, 124, Indira Chowk, New Delhi-110001 and at
any adjournment thereof in respect of such resolutions as are indicated below:
Resolution No. Optional*
Ordinary Business: For Against
1. Adoption Financial Statements for the year ended 31st March, 2016.
2. Re-appointment of Shri M.M.Joshi who retires by rotation.
3. Re-appointment of Dr. D.M.Kale who retires by rotation.
4. Ratify appointment of M/s Khanna and Anndhanam, Chartered Accountants,
(Regn. No.001297N), New Delhi, as Statutory Auditors and to authorize the Board
of Directors to fix their remuneration.
Signed this________dayof________________2016.
Affix
Revenue
Stamp
Signature of the Proxy________________ Signature of sole/first holder
Note:
1. This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the
Company, not less than 48 hours before the commencement of the Meeting.
2. For the Resolutions, please refer to the Notice of the 9th Annual General Meeting.
* 3. It is optional to put a ‘X’ in the appropriate column against the Resolutions indicated in the Box. If you leave the ‘For’ or
‘Against’ column blank against any or all Resolutions, your Proxy will be entitled to vote in the manner as he/she thinks
appropriate.