Mangalore Refinery And Petrochemicals Ltd

TO STAKEHOLDERS

Dear Shareholders,

It is my privilege to present, on behalf of the Board of the Directors of MRPL, the 36 Annual Report for the financial year 2023-24 to our valued shareholders and also present few highlights for the year's performance.

s Your Company achieved a turnover of Rs 1,05,190 Crore during the financial year 2023-24

as against Rs 1,24,686 Crore during the financial year 2022-23.

s Your Company earned profit of Rs 3,596 Crore (pro t after tax) during the financial year 2023-24 as against profit of Rs 2,638 Crore during the Financial Year 2022-23.

s Your Company has paid Interim Dividend of Rs 1/- per share and the board has recommended Final Dividend of Rs 2/- per share i.e. total 30% for the financial year 2023-24.

s The Gross Re ning Margin (GRM) for financial year 2023-24 was US $ 10.36/bbl as against US $ 9.88/bbl during the financial year 2022-23.

s Your Company secured "AAA" from ICRA and CRISIL for Rs 2,060 Crore NCDs and "AAA" from

CARE and India Rating (Fitch Group) for Rs 5,000 Crore NCDs.

s Debt Equity ratios has come down from 1.70 as on 31/03/2023 to 0.94 as on 31/03/2024.

s Mandatory M & I Shutdown of Phase III Re nery units and Hydrocracker Unit 1 completed and all the units are safely re-started.

s Re nery achieved throughput of 4.416 MMT

(Million Metric Tons) during Q1 of FY 2023-24, which was highest ever first quarter throughput for any year. (Previous best was 4.325 MMT during Q1 of FY 2022-23)

s Re nery achieved highest ever quarterly crude throughput, during Q4 of FY 2023-24, 4.51 MMT

(Previous best was 4.42 MMT during Q4 of FY 2015-16)

s Parallel unloading of crude from two Jetties was carried out using available infrastructures during Monsoon for maximizing throughput.

s Your Company has imported 20 TMT (Thousand Metric Tons) of opportunity HSFO for the first time as intermediate feed stock to increase the utilization of secondary processing units.

s Long term contract was signed with M/s BPCL for supply of RLNG for using as feed and fuel to re nery and Aromatic Complex.

s During summer of FY 2023-24, re nery sustained un-interrupted operation, without river water, using desalination/ treated municipal waste water.

s For ensuring safety, integrity and availability of the units, Aromatic Complex was operated on Para-xylene mode for a period of around 17 days.

s New Crude Namely Siberian Light Crude (Russia), KG D6 Crude (Ruby FPSO, India) & KG DWN 98/2 Crude (India) were processed for the first time at your re nery during the FY 2023-24.

s The Company has assessed the possible effect from

Russia-Ukraine War and ascertained that, there is no impact on the carrying amounts of Property, Plant and Equipment, Inventories, Receivables and Other Current Assets.

s There were no Major re incidents at the Re nery and Aromatics Complex in FY 2023-24.

s Your Company successfully handled massive shutdown of entire Phase-III Re nery and Aromatics unit involving huge manpower without any incidents.

s Technological advancement, such as the use of drone, arti cial intelligence in safety observations, Mast Climbing Working Platform (MCWP) for safe painting of stacks were introduced during the shutdown.

s Onsite mock drill was conducted at MRPL in the presence of District Disaster Management Authorities.

s External Safety Audits (for FY 2023-24) was carried out by M/s OISD & M/s Consultivo at Re nery Complex, and by M/s QSS at Aromatic Complex.

Direct Marketing

s Your Company continues to maintain major share of the direct sales segment of petroleum products market in Karnataka and adjoining states. Your Company maintained leadership position in its marketing zone for all direct sales products such as Bitumen, Diesel, Sulphur, Petcoke, ATF (thru' JV), Polypropylene, Xylol (Xylenes), Benzene etc. The total direct sales volume of all products in the domestic market during FY 2023-24 has been

2.6 MMT with a sales value of Rs 15,408 Crore

against 2.3 MMT with a sales value of Rs 13,428 Crore in FY 2022-23.

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s As of 31 March, 2024, your company has significantly expanded its retail operations in the states of Karnataka and Kerala, bringing the total number of operational retail outlets to 101. In alignment with the geographical expansion strategy, your company has for the first time released advertisements for award of MRPL HiQ Retail Outlet Dealership in the state of Tamil Nadu along with the states of Karnataka and Kerala.

In scal year 2024-25, your company plans to extend its retail marketing footprint to the states of

Andhra Pradesh and Telangana with release of advertisements for the award of dealership in these states during FY 2024-25.

s Your Company recorded Polypropylene sale of 384 TMT during FY 2023-24 against production of 389 TMT. MRPL has been continuously expanding its polymer footprints in the country through small volume MSME customers to uplift from Depots / CS locations by establishing MRPL Depots in core demand areas. MRPL also introduced 65 MFI nucleated grade as a commercial grade for thin walled Injection Molding application.

s Your company's joint venture Shell MRPL Aviation Fuel and Services Limited (SMAFL) has steadily acquired business for sale of Aviation Turbine Fuel (ATF) at Indian airports in South India. The company achieved a turnover of Rs 2,087 Crore during FY 2023-24 as against turnover of Rs 1,620 Crore in the previous FY 2022-23.

Your Company holds its employees in the highest esteem and accordingly follows the best in-class HR practices, reviews them periodically and strives to further improve upon that. MRPL provides comprehensive welfare facilities to its employees to take care of their health, ef ciency, economic betterment, etc. and to enable them to give their best at the workplace. These welfare benefits of the company are being revised from time to time in line with the industry practice so as to enable employees to get enhanced benefits. As a result, the employee relations continue to be cordial and harmonious. As in the past years, this year too, MRPL is happy to report that not a single man-hour was lost on account of any industrial disturbance in the year 2023-24.

s With climate change becoming an increasingly pressing issue, businesses have a critical role to play in promoting sustainable development. As a responsible and forward-thinking company, MRPL has recognized this responsibility and have made sustainability a key priority in our operations.

s Your Company has continued to produce renewable energy sources like solar power to reduce our carbon footprint. In addition, we have implemented energy-ef cient technologies and practices to reduce our energy consumption. During FY 2023-24, total solar energy generated by MRPL was 7890 MWh and total solar energy consumed by the company was 16,241 MWh (including the solar energy imported).

s Your Company has taken up different energy ef ciency improvement measures and has achieved a total fuel savings of 35,387 SRFT.

s Your Company has implemented many water-saving measures like investing in water treatment and recycling technologies to reduce fresh water

footprint. Ef uent recycle and re-use in the re nery has been maximized. 38,82,528 M3 of desalinated water from plant was utilized in the re nery complex. In addition to the de-salination plant, MRPL is utilizing Mangalore city treated sewage water to reduce our fresh river water consumption. In FY 2023-24, total Mangalore city treated sewage water utilized in the re nery is 60,12,092 M3.

s Your Company has taken several Greenbelt development and compensatory afforestation initiatives to increase its green cover. MRPL has developed 50 acres of Greenbelt in Pilikula Biodiversity Park with approximately 4000 numbers

of different Western Ghat plant species. MRPL has developed Greenbelt in 25 acres at Bengre near Thannirbhavi sea shore in co-ordination with Karnataka Forest Department.

s About 36 MT of Vermi-compost was harvested from the 3 Vermicompost facilities and utilized during FY 2023-24.

s Through plantation initiatives, MRPL planted 6,500 saplings of wide varieties covering endangered, native and fruit bearing trees in the re nery area during FY 2023-24.

s Your Company has actively engaged with local communities to promote sustainability awareness and educate them on the importance of responsible environmental practices. We have also supported environmental initiatives and programs to promote sustainable development. Some of these activities include providing drinking water facilities, solar street lights, and infrastructure to schools in nearby villages. We have conducted various community awareness programs in nearby villages to raise awareness on environmental issues, mainly related to domestic waste management, plastic waste, and the importance of tree plantation among the local community and school children. Additionally, we have undertaken social welfare projects, such as the "Apath-bandhu" program to create awareness on emergency and first aid care, and the "Nishabda" program to raise awareness about hearing loss.

I would like to acknowledge the support and guidance of the Government of India, especially our Administrative Ministry, "Ministry of Petroleum and Natural Gas (MoP&NG)".

I also place on record my admiration for our employees for their excellent contribution and to the Board of Directors for their expertise and guidance.

On behalf of the Board, I would also like to express my gratitude to all our stakeholders for their continued support, patronage, trust and con dence.

Jai Hind.