3rd annual report 2009-2010ongc teri biotech limited notice notice is hereby given that the 3rd...

3rd ANNUAL REPORT

2009-2010

ONGC TERI Biotech Limited

ONGC Teri Biotech Limited

BOARD OF DIRECTORS

Shri A.K.Hazarika Chairman

Dr. Banwari Lal Director & CEO

Shri M.M.Joshi Director

Dr. D.M.Kale Director

Dr. R. V. Marathe Director

Shri V.K. Jain Director

STATUTORY AUDITORS

M/s A. K. Khurana & Associates

Chartered Accountants,

New Delhi

BANKERS

State Bank of Hyderabad,

Lodhi Road, New Delhi

REGISTERED OFFICE

The Energy and Resources Institute,

Darbari Seth Block, IHC Complex,

Lodhi Road, New Delhi-110003


NOTICE

NOTICE is hereby given that the 3rd Annual General Meeting of the Members of

ONGC TERI Biotech Limited will be held on Thursday, the 24th June, 2010 at 17.00

Hrs. at Conference Room, 7th Floor, ONGC, Jeevan Bharti, New Delhi-110001, to

transact the following Business;

As Ordinary Business:

1. To receive, consider and adopt the Audited Balance Sheet as at 31st March,

2010 and the Profit and Loss Account 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 A.K.Hazarika who retires by rotation

and being eligible, offers himself for re-appointment.

3. To appoint a Director in place of Shri M.M.Joshi who retires by rotation and

being eligible, offers himself for reappointment.

As Special Business:

4. To consider and if thought fit, to pass with or without modification(s), the

following as a Special Resolution:

“RESOLVED THAT pursuant to section 224A of the Companies Act, 1956,

(including any statutory modification or re-enactment thereof for the time

being in force and as may be enacted from time to time) M/s A. K.

Khurana & Associates, Chartered Accountants, Membership No.084245,

the retiring Statutory Auditors of the Company from whom the Company

has received a Certificate under Section 224 (1)(B) of the Act, being

eligible, be and are hereby, re-appointed as the Statutory Auditors of the

Company to hold office from the conclusion of this meeting until the

conclusion of the next Annual General Meeting of the Company at a

remuneration of Rs.50,000/- exclusive of the applicable Service Tax and out

of pocket expenses.”

By Order of the Board of Directors

for ONGC TERI Biotech Limited

Sd/-

Place: New Delhi (S.K.C.Mathur)

Dated: 24th June, 2010 Authorized Signatory NOTES:

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.

2. The relevant Explanatory Statement pursuant to Section 173(2) of the Companies Act,

1956 in respect of item nos. 4 to 6 stated above is annexed hereto.


EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT,

1956

Item No. 4

As per section 224A of the Companies Act, 1956, the re-appointment of an auditor

shall be made by a Special Resolution since Oil and Natural Gas Corporation

Limited, a Government Company holds more than 25% (Twenty-five) of the

Subscribed Capital of the Company.

The Board of Directors recommends the resolution for your approval as a Special

Resolution.

None of the Directors of the Company is in any way concerned or interested in the

resolution.

By Order of the Board of Directors


Place: New Delhi (S.K.C.Mathur)

Dated: 24th June, 2010 Authorized Signatory


DIRECTORS’REPORT Dear Members,

Your Directors are pleased to present the 3rd Annual Report together with the

Audited Accounts of the Company for the period ending on 31st March, 2010.

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. 738.58 lakhs (Previous year - Rs. 80.75 lakhs). After meeting the

operational & other expenses, after tax carried forward net profit of your Company

is Rs.163.13 lakhs (Previous year - Rs.5.42 lakhs).

Dividend

Your Directors do not recommend payment of any dividend for the period ended

31st March, 2010.

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 Deposition 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 in Thol Village, Mehsana Asset, ONGC,

by excavating 14693.50 m3 of oily sludge from contaminated project land

caused due to leakage in CTF Trunk line and re-filling the same with good

soil.

Application of Oilzapper at the bioremediation site Lying of HPPE liner at the bioremediation site


The following work orders, which are under execution by your Company,

were also received during the year:

i) 27,614.65 MT of oil contaminated soil/oily sludge at different field

locations of Ahmedabad Asset, ONGC;

ii) 12900 MT of oily sludge /oil contaminated soil in pits at Santhal-1,

Mehsana Asset , ONGC;

iii) 8046 m3 of oily sludge in oil fields of Oil India Ltd, Duliajan;

iv) 150 tonnes of waste oily sludge / oil contaminated soil at

Kesanapalli (W) GGS, Rajahmundry Asset, ONGC:

v) 500 tonnes of oily sludge at Uran, ONGC; and

vi) 10,679 tonnes of waste oily sludge/oil contaminated soil &

Transportation of 1,597 M3 of oil contaminated soil from site at

Mehsana Asset, ONGC; and

vii) 250 tonnes oily sludge at Numligarh Refinery, Numligarh, etc.

Before After

Bioremediation site at Kathalguri OCS outside Pit Bioremediation site at Kathalguri OCS outside Pit

(ii) Microbial Enhanced Oil Recovery (MEoR)

Out of a work order for execution of 50 Microbial Enhanced Oil Recovery

(MEoR) job from Ahmedabad Asset, ONGC, your Company during the

year could complete job on 27 wells only due to some delays in handing

over of wells.

Execution of MEOR job in oil wells

Mehsana PDB Job

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(iii) Wax Deposition Prevention (WDP)/ Paraffin Degrading Bacterial (PDB)

During the year, your Company successfully completed Paraffin

Degrading Bacterial (PDB) jobs in 50 wells of Mehsana Asset, ONGC, while

Wax Deposition Prevention (WDP) jobs in about 80 kms. of flow lines of

Ahmedabad Asset, ONGC is nearing completion.

Execution of PDB job in oil wells

Future Outlook

The future outlook of your Company is full of promise as its order book is overflowing

with several proposals in pipeline and nearing maturity.

Your Company has a running agreement with ONGC to provide bio-remedial

solutions and services to all its Assets and producing fields spread throughout India

for enhanced crude oil production. An MOU has also been signed with Oil India

Ltd. for an initial period of 10 years. First order has already been received for

bioremediation of 8046 cubic metric of oily sludge in their oil spilled fields by using

Oilzapper Technology, while another Work order on Prevention of Paraffin

Deposition in Oil well tubing is expected to be received soon.

An order for a bio-remediation job of 4,800 MT at Belur Scrap Yard under Eastern

Railway, West Bengal, is expected to be received soon as the proposal submitted

by your Company has been accepted. Orders for bioremediation job are also

expected to be received from Reliance Industry and Tata Power.

On the International front, the pre-qualification exercise for remediation of existing

pits and contaminated soil fields of Kuwait Oil Company (KoC) is progressing. Your

Company participated in the Oil Lake/ Oil Contaminated Soil Remediation and

Ecological Restoration Forum organized by Kuwait National Focal Point in

collaboration with KoC for pre-qualified bidders. Through M/s Jindal Petroleum

Limited, Gurgaon, your Company has received an order to perform MEoR job on

two wells in Georgia on pilot basis.


Fixed Deposit

The Company has not accepted any Fixed Deposits from the public.

Auditors

M/s A.N. Khurana & Associates, Chartered Accountants, New Delhi, Statutory

Auditors of the Company holds office until the conclusion of the forthcoming

Annual General Meeting of the Company and are recommended for

reappointment. The Company has received certificate from them to the effect

that their appointment, if made, would be within the provisions of Section 224(1) of

the Companies Act, 1956. There is no qualification in the Auditors’ Report for the

year ended 31st March, 2010.

Particulars of Employees

There is no employee in the Company whose particulars are required to be given

under Section217 (2A) of the Companies Act, 1956.

Particulars of Conservation of Energy, Technology Absorption 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. For example, use of low pressure pumps to send environmental

friendly microbial solution for recovery of trapped oil in the reservoirs; use of

microbial system to form bio-films in the pipelines preventing paraffin deposition

for considerable time and eliminating use of energy sapping drilling instruments,

shut-down of operations and use of energy intensive mechanical scrappers;

microbes using toxic waste as source of nutrients and converting the same to

compost, requiring no external energy and the wastes converted to CO2, water

and bacterial biomass, etc. Microbial methods used are thus latest in the fast

evolving field of bioremediation solutions backed by robust research and

development. Effort to conserve & optimize use of energy and absorb new

techniques is a continuous process in your Company. The Company has not

earned but has spent Rs.47, 180 (Previous Year: Nil) in foreign exchange during the

accounting period ended 31st March, 2010.

Directors’ Responsibility Statement

As required under Section 217 (2AA) of the Companies Act, 1956, your Directors

state that:

(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,1956 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.

Directors

In accordance with the provisions of the Companies Act, 1956 and the Articles of

Association of the Company, S/Shri A.K.Hazarika and M.M.Joshi, Directors, retire by

rotation and being eligible, offer themselves for re-appointment.

None of the Directors are disqualified from being appointed as Directors in terms of

provisions of Section 274 (1) (g) of the Companies Act, 1956.

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 for the all-round co-operation and contribution made at all levels in

the formative years of the Company.

Regd. Office: On behalf of the Board of Directors


The Energy and Resources Institute,

Darbari Seth Block, IHC Complex,

Lodhi Road, New Delhi-110003

(A.K.Hazarika)

Date: 24th June, 2010 Chairman


AUDITOR’S REPORT

The Shareholders of ONGC TERI BIOTECH LIMITED

We have audited the attached Balance Sheet of ONGC TERI BIOTECH

LIMITED as at 31st March, 2010 and also the Profit and Loss Account for the

year ended on that date annexed thereto. These financial statements are

the responsibility of the Company’s management. Our responsibility is to

express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally

accepted in India. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether the financial

statements are free of material misstatement. An audit includes examining,

on a test basis, evidence supporting the amounts and the disclosures in the

financial statements. An audit also includes assessing the accounting

principles used and significant estimates made by management, as well as

evaluating the overall financial statement presentation. We believe that our

audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor’s Report) order 2003 issued by the

Central Government of India in terms of Section (4A) of Section 227 of the

Companies Act 1956, we enclose in the annexure a statement on the

matters specified in paragraphs 4 & 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations which to the

best of our knowledge and belief were necessary for the purpose of

our audit.

ii) In our opinion, proper Books of Account as required by law have

been kept by the Company so far as it appears from our examination

of such books;

iii) The Balance Sheet and Profit and Loss Account dealt with by this

report are in agreement with the Books of Account;


iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt

with by this report comply with the Accounting Standards referred to

in sub-section (3C) of Section 211 of the Companies Act, 1956.

v) On the basis of written representations received from the Directors, as

on 31st March 2010, and taken on record by the Board of Directors,

we report that none of the Directors is disqualified as on 31st March

2010 from being appointed as a director in terms of clause (g) of sub-

section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the

explanations given to us, the said accounts give the information

required by the Companies Act, 1956, in the manner so required and

give a true and fair view in conformity with the accounting principles

generally accepted in India:

(a) In the case of the Balance Sheet, of the State of Affairs of the

Company as at 31st March, 2010

(b) In the case of the Profit and Loss Account, of the Profit for the year

ended on that date.

For A.K.KHURANA & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

Place: New Delhi (ASHOK KHURANA)

Dated: 22nd May, 2010 SOLE PRACTITIONER

Membership No.: 084245


ANNEXURE TO AUDITOR’S REPORT

1. a) The Company has maintained proper records showing full particulars

including quantitative details and situation of fixed assets.

b) The Company has a programme of physical verification of fixed assets

which is, in our opinion, reasonable having regard to the size of the

Company and the nature of its assets. In accordance with this programme,

certain fixed assets have been physically verified by the management

during the year and no serious discrepancies have been noticed on such

verification.

c) The Company has not disposed off any fixed assets during the year.

2. The nature of business of the Company does not require it to maintain

inventories except for the limited purpose of consumption of chemicals and

consumables at the site locations of customers while executing jobs.

a) As per the information and explanation given to us, the same have been

physically verified by the management at regular intervals.

b) In our opinion and according to the information and examinations given to

us, the procedures of physical verification followed by the management are

reasonable and adequate in relation to the size and nature of its business.

c) On the basis of our examination of the records, we are of the opinion that

the Company is maintaining reasonable proper records in view of the nature

and size of its operations.

3. The Company has not granted or taken any loans, secured or unsecured

to/from companies, firm or other parties covered in the register maintained

under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to

us, having regard to the explanations that some of the items purchased and

services availed/ rendered are of special nature and suitable alternative

sources do not exist for obtaining comparable quotations, there are

adequate internal control procedures commensurate with the size of the

Company and the nature of business with regard to purchase of inventory

and fixed assets and with regard to the services rendered. During the course

of our audit, we have not observed any continuing major weaknesses in

such internal control.

5. The Company has not accepted any deposits from the public under the

meaning of section 58A and 58AA of the Companies Act, 1956 or any other

relevant provision of the Act and the rules framed there under.

6. In our opinion and according to the information and explanations given to

us, the Company is generally regular in depositing undisputed statutory dues

including income tax, sales tax, service tax, custom duty and cess and other

statutory dues, if any with the appropriate authorities. There are no arrears of

outstanding statutory dues as at 31st March 2010 for a period of more than

six months from the date they became payable.


7. The Company has neither accumulated losses nor has incurred cash losses in

the financial year or in the immediately preceding financial year.

8. The Company has not granted loans and advances on the basis of security

by way of pledge of shares and other securities.

9. Based upon the audit procedures performed and as per the information

and explanations given to us by the management, we report that no fraud

on or by the Company has been noticed during the year.

10. The Comment on other matters are required by the Company’s (Auditor’s

Report) Order, 2003 are not given as the same are not applicable to the

Company.

For A.K.KHURANA & ASSOCIATES


Sd/-

Place: New Delhi (ASHOK KHURANA)

Dated: 22nd May, 2010 SOLE PRACTITIONER

Membership No.: 084245


BALANCE SHEET AS AT 31ST MARCH, 2010

PARTICULARS SCHEDULE CURRENT YEAR PREVIOUS YEAR

SOURCE OF FUNDS

SHARE CAPITAL 'A' 500000.00 500000.00

RESERVES & SURPLUS

Opening balance 542499.20

Add: Net Profit 16313058.44 16855557.64 542499.20

17355557.64 1042499.20

APPLICATION OF FUNDS

FIXED ASSETS 'B' 231092.09 -

WORKING CAPITAL 'C' 16929142.35 817965.60

MISCELLANEOUS EXPENDITURE

(To the extent not written

off / adjusted)

- Preliminary / Pre-Operative Expenses

Opening Balance 224533.60

Less: written off during the year 56133.40 168400.20 224533.60

DEFERRED TAX ASSET 26923.00 -

17355557.64 1042499.20

Notes to Accounts are given in Schedule ' E'

Auditor's Report As per our separate report of even date attached

for A .K .KHURANA & ASSOCIATES


Sd/- Sd/- Sd/- (ASHOK KHURANA) ( A.K.HAZARIKA) (DR. BANWARI LAL)

SOLE PRACTITIONER CHAIRMAN DIRECTOR &CEO

Membership No.:084245

PLACE : NEW DELHI

DATED : 22nd

May, 2010


PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010

PARTICULARS SCHEDULE CURRENT PREVIOUS

YEAR YEAR

INCOME

REVENUE FROM PROJECTS CLOSED 73,858,500.00 8075885.00

INTEREST ON FIXED DEPOSIT 2,678,227.00 -

TOTAL OF 'A' 76,536,727.00 8075885.00

EXPENDITURE

COSTS ON PROJECTS CLOSED 46384722.00 7097786.00

PERSONNEL, ADMINISTRATIVE,

SELLING & FINANCIAL EXPENSES 'D' 5,464,924.65 193003.80

DEPRECIATION 'B' 55,641.91 -

TOTAL OF 'B' 51,905,288.56 7290789.80

PROFIT / (LOSS) BEFORE TAX ('A') - ('B') 24,631,438.44 785095.20

ADD: DEFERRED TAX ASSET 26,923.00

24,658,361.44

LESS: PROVISION FOR INCOME TAX 8,345,303.00 242596.00

PROFIT / (LOSS) AFTER TAX 16,313,058.44 542499.20

Notes to Accounts are given in Schedule ' E '

Auditor's Report

As per our separate report of even date attached

for A .K .KHURANA & ASSOCIATES


Sd/- Sd/- Sd/-

(ASHOK KHURANA) (A.K.HAZARIKA) (DR. BANWARI LAL)

SOLE PRACTITIONER CHAIRMAN DIRECTOR & CEO

MEMBERSHIP NO.:084245

PLACE : NEW DELHI

DATED : 22nd May, 2010


PARTICULARS CURRENT YEAR PREVIOUS YEAR

AUTHORISED SHARE CAPITAL

10,00,000 Equity Shares of Rs.10/-each 10000000.00 100000000.00

ISSUED, SUBSCRIBED AND PAID UP

50,000 Equity Shares of Rs.10/-each fully paid up 500000.00 500000.00

500000.00 500000.00

SCHEDULE 'A'

SCHEDULE OF SHARE CAPITAL FORMING PART OF BALANCE SHEET

AS AT 31ST MARCH, 2010


SCHEDULE ‘B’

SCHEDULE OF FIXED ASSETS FORMING PART OF ACCOUNTS FOR THE YEAR

ENDED 31ST MARCH, 2010

PARTICULARS

GROSS BLOCK DEPRECIATION NET BLOCK

AS ON 31.03.2009

ADDITION SALES AS ON 31.03.10

UP TO 31.03.09

FOR THE YEAR

UP TO 31.03.10

AS ON 31.03.2009

AS ON 31.03.10

COMPUTER - 231900.00 - 231900.00 - 53693.44 53693.44 - 178206.56

FURNITURE - 12098.00 - 12098.00 - 635.92 635.92 - 11462.08

OFFICE EQUIPMENT - 13600.00 - 13600.00 - 435.36 435.36 - 13164.64

SCIENTIFIC EQUIPMENT - 29136.00 - 29136.00 - 877.19 877.19 - 28258.81

TOTAL Previous Year’s Figures

- 286734.00 - 286734.00 - 55641.91 55641.91 - 231092.09

-

-

-

-

-

-

-

-

-


SCHEDULE 'C'

SCHEDULE OF WORKING CAPITAL FORMING PART OF BALANCE SHEET

AS AT 31ST MARCH, 2010


CURRENT ASSETS, LOANS & ADVANCES

COSTS ON ONGOING PROJECTS 51502204.00 12301019.00

SUNDRY DEBTORS

(Unsecured considered good)

- Outstanding for period exceeding six months 1697253.00 - Others 9922588.00 11619841.00 -

CASH & BANK BALANCES

- Balance with Scheduled Bank 3578039.35 10080687.60

Advances recoverable in cash or in

kind or for value to be received/

adjusted (Unsecured considered good)

- Prepaid Expenses - 13296.00

- Tax Deducted at Source (against ongoing projects) 2759604.00 539692.00

- Tax Deducted at Source (against closed projects) 1869287.00 183920.00

- TDS on Fixed Deposit 268465.00 -

- Security Deposit 3502750.00 -

- Advance Income Tax 5860050.00 61800.00

- Service Tax (Cenvat Credit) - 74334.00

- Service Tax Refundable - 92001.00

- Fixed Deposit 76910000.00 -

- Interest accrued on Fixed Deposit 2367054.00 -

- Advance to suppliers 10364.00 -

- Advance to Staff 21200.00 2000.00

TOTAL OF 'A' 160268858.35 23348749.60

CURRENT LIABILITIES & PROVISIONS

SUNDRY CREDITORS

- For trade 2926842.00 1617038.00

- For Expenses 1327270.00 55150.00

4254112.00 1672188.00

INCOME FROM ONGOING PROJECTS 128,739,294.00 20616000.00

PROVISION FOR TAXATION 8587899.00 242596.00

PROVISION FOR SERVICE TAX 993752.00

TDS PAYABLE 764659.00

TOTAL OF 'B' 143339716.00 22530784.00

WORKING CAPITAL 'A' - 'B' 16929142.35 817965.60


SCHEDULE 'D'

SCHEDULE OF PERSONNEL, ADMINISTRATIVE SELLING AND FINANCIAL EXPENSES

FORMING PART OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010


Staff salary, allowances and reimbursement 2499651.00 -

Staff Welfare 2309.00 -

Website Development & Maintenance charges 13296.00 54681.00

Office Rent 96000.00 -

Books & Periodicals 1935.00 5000.00

Telephone Expenses 68164.00 -

Courier charges 23510.00 -

Electricity charges 41350.00 -

Professional / Consultancy Fees 207947.00 7664.40 Travelling & Conveyance (including foreign travel Rs. 1,58,811) 1199646.00 -

(Includes incurred on director Rs.2,36,885, previous year Nil)

Miscellaneous / Sundry Expenses 102997.00 44.00

Printing & Stationery 89542.25 4826.00

Repair & Maintenance-Others 32335.00 -

Taxes & Fees 772054.00 -

Advertisement, Publicity & Business Promotion 122493.00 -

Payment to Auditors

- Statutory Audit 50000.00

-Tax Audit 10000.00

- Income Tax Matters 24000.00

-Service Tax Matters 20000.00

- Other Services 2100.00

-Out of pocket Expenses 5000.00

-Service Tax 11444.00 122544.00 64230.00

Bank charges 13018.00 425.00

Preliminary / Preoperative Expenses w/off 56133.40 56133.40

5464924.65 193003.80


SCHEDULE - E

NOTES TO ACCOUNTS FORMING PART OF ACCOUNTS FOR THE YEAR

ENDED 31ST MARCH, 2010

1. SIGNIFICANT ACCOUNTING POLICIES

The Company has followed mercantile system of accounting and

recognises 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.

2. FIXED ASSETS/ DEPRECIATION

Fixed Assets are stated at cost. Depreciation on Fixed assets has been provided on written down value basis according to the rates

prescribed in Schedule XIV of the Companies Act, 1956 for the actual period of use.

3. REVENUE RECOGNITION

Revenue from projects based on execution and costs attributable and allocable thereto are recognized on full completion or

substantial completion of the related projects and is billed in accordance with the contractual terms specified in the contracts/

agreement.

4. JOINT VENTURE/ ASSOCIATES

The Company is a joint venture company formed by ONGC Ltd. in association with The Energy and Resources Institute, New Delhi.

5. CONTINGENT LIABILITIES

Outstanding Bank Guarantees- Rs. 5,10,000 (Previous Tear-Rs. Nil)

6. EXPENDITURE INCURRED IN FOREIGN CURRENCY

Foreign Travel- Rs.47, 180 (Previous Year-Rs. Nil)


7. The preliminary / preoperative expenses shall be written off over a period of five years.

8. Previous period figures have been regrouped / rearranged,

wherever required, to make them comparable with the current year.

9. Schedule ‘A’ to Schedule ‘E’ forms integral part of accounts and have been duly authenticated.

Auditors Report

As per our report of even date For A.K.KHURANA & ASSOCIATES


Sd/- Sd/- Sd/- (ASHOK KHURANA) (A. K.Hazarika) (Banwari Lal)

SOLE PRACTITIONER CHAIRMAN DIRECTOR & CEO Membership No.: 084245

Place: New Delhi

Dated: 22nd May, 2010

3rd annual report 2009-2010ongc teri biotech limited notice notice is hereby given that the 3rd...

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