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ANNEXURES
MANAGEMENT’S BUSINESS REPORT ON
DIRECTORS’ TO
DISCUSSION & RESPONSIBILITY CORPORATE
REPORT DIRECTORS’
ANALYSIS REPORT GOVERNANCE
REPORT
COMMENTS OF
STANDALONE CONSOLIDATED
COMPTROLLER AND
FINANCIAL FINANCIAL NOTICE
AUDITOR GENERAL
STATEMENTS STATEMENTS
OF INDIA
Indian Oil Corporation Limited In this report, one lakh corresponds to 0.1 million
Regd. Office: IndianOil Bhavan, G-9, Ali Yavar and one crore to ten million.
Jung Marg, Bandra (East), Mumbai - 400051
ABOUT THE REPORT
Reporting Approach Reporting Framework
7ITH EXTENSIVE PETROLEUM RElNING 4HIS REPORT HAS ADOPTED THE )NTERNATIONAL
DISTRIBUTION AND MARKETING INFRASTRUCTURE )NTEGRATED 2EPORTING #OUNCIL ))2#
ANDSTATE
OF
THE
ART2$FACILITIES)NDIAN FRAMEWORK FOR DISCLOSING ITS PERFORMANCE
/IL #ORPORATION ,IMITED h)NDIAN/ILv OR AND SHOWCASING VALUE CREATION FOR EACH
hTHE#OMPANYv ISONEOFTHE)NDIASLARGEST STAKEHOLDERGROUP
COMMERCIAL ENTERPRISES !S A RESPONSIBLE
CORPORATE CITIZEN )NDIAN/IL HAS BEEN
PUBLISHING ITS Sustainability Report SINCE Reporting Scope and
TO COMMUNICATE ITS SOCIAL
ECONOMICANDENVIRONMENTPERFORMANCETO Boundary
ITSSTAKEHOLDERS 4HISREPORTCOVERSTHE#OMPANYSOPERATIONS
IN THE AREAS OF RElNERIES PIPELINES
)NCONTINUATIONOFITSEFFORTSINPROMOTING MARKETING RESEARCH DEVELOPMENT
TRANSPARENCYANDINCLUSIVITYTHE#OMPANY PETROCHEMICALS NATURAL GAS EXPLORATION
ISPUBLISHINGITSSECOND)NTEGRATED!NNUAL ANDPRODUCTIONANDALTERNATIVEENERGY
2EPORT )!2 FOR THE YEAR
7ITH
ADOPTION OF THE )NTEGRATED 2EPORTING
&RAMEWORK )NDIAN/IL AIMS AT PROVIDING
COMPREHENSIVE INCLUSIVE AND INTEGRATED
Reporting Period
INFORMATION PERTAINING TO VALUE CREATION &OR lNANCIAL AND STATUTORY INFORMATION
BY THE ORGANISATION FOR EACH STAKEHOLDER DISCLOSED THE REPORTING PERIOD IS !PRIL
GROUP TO -ARCH 4O PROVIDE A
HOLISTIC PERSPECTIVE TO THE STAKEHOLDERS
4HIS REPORT IS )NDIAN/ILS EFFORT TOWARDS THISREPORTHASSHOWNCOMPARISONOFTHELAST
PROVIDING INSIGHTS TO OUR INTERNAL AND THREETOlVEYEARSTRENDSFORSELECTITEMS
EXTERNALSTAKEHOLDERSABOUTTHE#OMPANYS
INTERNAL AND EXTERNAL ENVIRONMENT
OPPORTUNITIES RISKS MATERIAL ISSUES
MITIGATION PLANS STRATEGIES AND FUTURE
ROADMAP TO CONTRIBUTE TOWARDS THE
SUSTAINABLEDEVELOPMENTOFTHENATION
60th Annual Report 2018-19 3
About the
Report
FROM THE CHAIRMAN’S DESK
Dear IndianOil Investors,
Chairman’s Desk
-Y HEARTIEST GREETINGS TO YOU ON MY PERSONAL BEHALF AND ON
From the
BEHALFOF)NDIAN/IL0EOPLE
)T IS MY PLEASANT DUTY ONCE AGAIN TO PRESENT TO YOU THE
)NTEGRATED !NNUAL 2EPORT OF YOUR #OMPANY FOR THE lNANCIAL
About IndianOil
YEAR
FOCUSSINGONTHEPERFORMANCEHIGHLIGHTSOFTHE
YEARANDTHEHIGH
GROWTHAGENDALINEDUPFORTHEFUTURE
Description of
#APITALAND.ATURAL#APITAL
Capitals
7ITHOUTANIOTAOFDOUBT)NDIAN/ILSSTRENGTHASASUCCESSFUL
ENTERPRISE STEMS FROM ITS RICH HUMAN CAPITAL 7ITH A PROUD
Board of
ANEW)NDIARISESONTHEGLOBALARENA)NDIAN/IL0EOPLETAKE
PRIDE IN BEING FUTURE
READY BY CONTINUOUSLY UPGRADING THEIR
SKILLSANDCAPABILITIES
9OUR #OMPANY HAS KEPT ITS PROMISES TO THE NATION SINCE
INCEPTION WORKING FOR SELF
SUFlCIENCY AND SECURITY IN ENERGY
Directors’
Report
ANDRELATEDAREAS3URMOUNTINGMANYCHALLENGESITACHIEVED 3HRI3ANJIV3INGH
SUSTAINED GROWTH IN SYNC WITH THE NATION TO BECOME )NDIAS
Management’s
!S THE FASTEST GROWING ECONOMY IN THE WORLD )NDIA REQUIRES • 'LOBALECONOMICGROWTHSLOWEDDOWNTOIN
ACCESS TO ABUNDANT ENERGY DELIVERED IN NEW AND AFFORDABLE FROMIN
WAYS)NDIAN/ILISFULLYGEAREDFORTHECHALLENGE/VER
• 'ROWTHINEMERGINGECONOMIESALSODECELERATEDTO
CUSTOMER TOUCH POINTS OF YOUR #OMPANY SPREAD ACROSS EVERY
Responsibility Report
INFROMIN
NOOK AND CORNER OF THE NATION PROVIDE ENERGY SOLUTIONS TO A
BILLION
PLUSCUSTOMERSTOKEEP)NDIAONTHEMOVE!NDWEARE • %CONOMICDECELERATIONDUETORISINGTRADE
PROTECTIONISM53
#HINATRADETENSIONSETC
Business
FURTHEREXPANDINGOURRElNINGCAPACITYSUPPLYDISTRIBUTION
CHANNELS AND MARKETING NETWORK IN LINE WITH THE GROWING • )NDIANECONOMYGREWBYINFASTESTGROWING
DOMESTICDEMAND LARGEECONOMY
• 'ROWTHPROPELLEDBYPRIVATESPENDINGINDUSTRY Report on Corporate
4ODAYASALOW
CARBONFUTUREBECKONSONTHEHORIZON)NDIAN/IL MANUFACTURINGANDCAPITALFORMATION
ISENGAGEDINBUILDINGAFUTUREFULLOFCLEANANDGREENENERGY
Governance
PROGRESSIVELYINTEGRATINGALTERNATIVEENERGYANDRENEWABLESIN OFTHEFUTURE)TSRICHREPOSITORYOFINTELLECTUALCAPITALHASNOW
OUROPERATIONSASWELLASINOUREXPANDINGBOUQUETOFOFFERINGS CROSSEDAMAJORMILESTONEOFOVERATHOUSANDPATENTS
4 Indian Oil Corporation Limited 2nd Integrated Annual Report
INDUSTRY SCENARIO
Global oil & gas scenario
4HEHYDROCARBONSSECTORHASCONTRIBUTEDENORMOUSLYTOGLOBAL
ECONOMICPROGRESSOVERTHELASTCENTURY4ODAYHOWEVERITIS • 'LOBALPRIMARYENERGYCONSUMPTIONGREWBYIN
FACINGCOMPETITIONFROMNEWANDEMERGINGENERGYOPTIONSAND ASAGAINSTIN
TECHNOLOGIES 4HE st CENTURY IS DElNITELY GOING TO WITNESS • /ILDEMANDGREWBYWITHNATURALGASASTHE
ECONOMIESBASEDONCLEANFUELSANDLOW
CARBONOPTIONSWILL FASTESTGROWINGFUELACCOUNTINGFOROFTHE
GET PROGRESSIVELY ENTRENCHED IN THE ENERGY MIX WITH POLICY INCREASEINTOTALENERGYDEMAND
BACKING)TISTIMEFORTHEOILGASCORPORATESTOONCEAGAIN
• "RENTCRUDEOILPRICESAVERAGEDPERBARRELIN
REINVENTTHEMSELVESANDCONTINUETOPLAYALEADROLEESPECIALLY
REGISTERINGASIGNIlCANTINCREASEOFPER
IN THOSE PARTS OF THE WORLD LIKE )NDIA WHERE PRIMARY ENERGY
BARRELOVER
CONSUMPTIONCONTINUESTOREGISTERADRAMATICRISE
4HE NEED OF THE HOUR IS TO INTEGRATE NEW TECHNOLOGIES LIKE
DIGITALISATION!RTIlCIAL)NTELLIGENCE)NTERNETOF4HINGSETCIN
ALLSEGMENTSOFTHEINDUSTRYTOGETHERWITHINNOVATIVEPROCESS Indian oil & gas scenario
TECHNOLOGIES TO PROVIDE EFlCIENT CLEAN AND GREEN ENERGY • )NDIASPETROLEUMPRODUCTSCONSUMPTIONIN
SOLUTIONSFORALLCUSTOMERSEGMENTSANDBUSINESSESTOENSURE WAS--4WITHGROWTHOVER
THATNATIONSECONOMICGROWTHISNOTHAMPEREDINANYWAY
• 0ETROLCONSUMPTIONROSEBYDIESELBYAND
4HE DOMESTIC RElNING SECTOR IS ATTEMPTING A VERY AMBITIOUS ,0'BY
PROJECT OF LEAP
FROGGING FROM "3
)6 TO "3
6) FUELS REGIME • )NDIASRElNINGCAPACITYSTOODAT--40!ATTHE
)NDIANRElNERSAREONTRACKTOUSHERINTHECLEANESTAUTOMOTIVE ENDOF
SECONDLARGESTIN!SIA
FUELS ACROSS THE COUNTRY FROM !PRIL )N FACT )NDIAN/IL
• #RUDEOILIMPORTSROSEBYTO--4
RElNERIESHAVECOMPLETEDOVEROFTHE"3
6)PROJECTSAND
SHOULDBEREADYTOSUPPLYTHEUPGRADEDFUELSWELLWITHINTHE • )NDIANCRUDEOILBASKETAVERAGEDATBARRELIN
STIPULATEDTIMELINE4HESUCCESSOFTHISAMBITIOUSINITIATIVEWILL
HIGHERTHAN
LEVEL
FURTHER ENHANCE )NDIAS CREDENTIALS AS A WORLD
CLASS RElNING
HUB IN !SIA WITH THE FOURTH LARGEST RElNING CAPACITY
--40! INTHEWORLD INDIANOIL: STRENGTHENING CORE
4HE COUNTRY HAS ROBUST SUPPLY DISTRIBUTION CHANNELS A BUSINESS
KM NETWORK OF OIL GAS PIPELINES ABOUT
9OUR #OMPANYS PERFORMANCE IN THE lNANCIAL YEAR
,0'DISTRIBUTORSANDOVERFUELSTATIONSWITHANOTHER
HASBEENEXCEPTIONALINTERMSOFBOTHOPERATIONALANDlNANCIAL
INTHEOFlNG
PARAMETERS"ESIDESPOSTINGALL
TIMEHIGHRECORDSINTHETHREE
MAJOR PARAMETERS n SALES AS WELL AS RElNERIES AND PIPELINES
THROUGHPUTS n THE #OMPANY CROSSED THE 2S LAKH CRORE
MILESTONEINTURNOVERFORTHEYEARWITHHANDSOMEPROlTS7ITH
Road to reform: India’s fuels upgradation numero unoPOSITIONINTHEDOWNSTREAMPETROLEUMSECTORTHE
programme #OMPANYCONTINUEDWITHITSLEGACYOFPUTTINGTHENATIONlRST
• "3
)6FUELSIMPLEMENTATIONACROSS)NDIA#OMPLETEDBY ANDPROVIDINGVIABLEFUELSOLUTIONSTODIVERSECUSTOMERGROUPS
!PRIL WHILEATTHESAMETIMESTRENGTHENINGITSNEWVERTICALSOF%0
0ETROCHEMICALSAND'AS
• "3
6)FUELSIMPLEMENTATIONIN.#4#OMPLETEDBY!PRIL
Marketing
9OUR#OMPANYWHICHCATERSTONEARLYHALFOF)NDIASPETROLEUM
• "3
6)IMPLEMENTATIONIN.#2AND!GRA5NDERWAYFROM CONSUMPTIONREGISTEREDITSBESTEVERSALESVOLUMESIN
!PRILTO/CT )N THE BACKDROP OF )NDIAS PRIMARY ENERGY DEMAND
• "3
6)FUELSIMPLEMENTATIONACROSS)NDIA4OBE
OUTPACING GLOBAL DEMAND RISING INFRASTRUCTURE PROJECTS
COMPLETEDBY!PRIL
AND A SURGE IN COMMERCIAL VEHICLE SALES LED TO RECORD HIGH
DIESEL CONSUMPTION IN
-ATCHING THIS PACE OF
• %STIMATEDINVESTMENTOF/-#RElNERIESON"3
)))TO GROWTH )NDIAN/IL MAINTAINED ITS PLACE AT THE TOP AND DID
"3
6)CONVERSIONPROJECTS2SCRORE WELL IN INSTITUTIONAL SALES TOO REGISTERING INCREASE IN MARKET
SHARE IN ALL PRODUCTS 3IMILARLY YOUR #OMPANYS TIME
TESTED
COMMITMENTANDSERVICETOTHEDEFENCEFORCESANDTHESECURITY
ECO
SYSTEMOFTHENATIONHAVEWONMANYACCOLADES
60th Annual Report 2018-19 5
About the
Report
MILLION TONNES AND EXPORT OF )NDANE .ANOCUT ADDITISED
IndianOil: Fuelling a billion dreams ,0' SUITED FOR HIGH
TEMPERATURE INDUSTRIAL APPLICATIONS TO
"ANGLADESHCOMMENCEDDURINGTHEYEAR)NDIAN/ILOPENEDA
• )NDIAN/ILSTURNOVERCROSSED2SLAKHCRORE
NEWREPRESENTATIVEOFlCEIN.EPALINADDITIONTOEXISTINGOFlCES
Chairman’s Desk
MILESTONEIN
IN -YANMAR AND "ANGLADESH AND FULL
mEDGED SUBSIDIARIES
• 3ALESINCLUDINGEXPORTSIN
--4 OPERATINGIN3RI,ANKA-AURITIUS3INGAPOREAND5!%
From the
• %XPORTSIN
--4
• .UMBEROFCUSTOMERTOUCH
POINTSCROSSEDTHE
MARK
About IndianOil
• 4OTAL.OOFFUELSTATIONSAUTOMATED
• .EWHEIGHTSINAVIATIONFUELLINGWITH!&3S
Description of
CUSTOMERS 4HE AMBITIOUS Project Dhruva INITIATIVE CURRENTLY
UNDERWAY ENCOMPASSES NEW TECHNOLOGIES AND SERVICES TO
Capitals
ACHIEVEGREATEREFlCIENCYINOPERATIONSANDASUPERIORBUYING
IndianOil released more than 2.1 crore new LPG connections
EXPERIENCEFORYOUR#OMPANYSRETAILCUSTOMERS
during 2018-19, raising the Indane customer base to over 14.8
Board of
• 4OTAL,0'HOUSEHOLDSIN)NDIACRORE
)NDIAN/ILRElNERIESEXCELLEDINALLMAJORPHYSICALPARAMETERS
• PaHaLHOUSEHOLDSRECEIVINGSUBSIDYINTHEIRBANK ANDACHIEVEDARECORDCOMBINEDCRUDEOILTHROUGHPUTDURING
ACCOUNTSCRORE
4HERElNERIESALSOREGISTEREDTHEBESTEVERNUMBERS
• 0-59TARGET$EPOSIT
FREE,0'CONNECTIONSTOCRORE IN3PECIlC%NERGY#ONSUMPTION-". %NERGY)NTENSITY)NDEX
"0,HOUSEHOLDSBY %)) AND&UEL,OSS
Directors’
• 0-59TARGETACHIEVEDTILLNOWCROREHOUSEHOLDS
Report
! WORLD
SCALE 0OLYPROPYLENE 00 PLANT WAS COMMISSIONED
• ,0'PENETRATIONACHIEVED/VER AT 0ARADIP 2ElNERY IN &EB TO ACT AS THE MOTHER UNIT
IN NURTURING THE DOWNSTREAM PLASTICS PROCESSING INDUSTRY IN
Management’s
• )NDIAN/ILS,0'SALESSURPASSEDMILLIONTONNESA AKEYDRIVERFORTHETEXTILESINDUSTRYINTHEREGIONESPECIALLY
month FOR POLYESTER lBRE 4WO OTHER MAJOR PROJECTS IN PROGRESS ARE
/VERTHELASTlVEYEARSYOUR#OMPANYHASHADTHEPRIVILEGEOF CAPACITY EXPANSION OF )NDIAN/ILS "ARAUNI 2ElNERY AND AN
SPEARHEADINGMEGASCHEMESLIKEPaHaL,0'SUBSIDYSCHEME !4&PRODUCTIONUNITUSINGTHEIN
HOUSE).$*ETTECHNOLOGYOF
Responsibility Report
#GiveItUp CAMPAIGN AND PMUY (Pradhan Mantri Ujjwala )NDIAN/ILS2$#ENTRE
Yojana) THATHAVEMADECLEANENERGYACCESSIBLEACROSSSOCIO
ECONOMICDIVIDES
Business
The energy for India’s rise
)NDIAN/IL HAS BEEN EXTENDING THE REACH OF ITS Indane
3UPERBRANDTOMOREHOUSEHOLDSEVERYYEAR,EADINGTHEPUSH • 2ElNERIESTHROUGHPUTIN
--4
Report on Corporate
FOR CLEAN ENERGY THE #OMPANY RELEASED THE HIGHEST EVER • -AJORPROJECTSCOMMISSIONEDDURING
NUMBEROFNEW,0'CONNECTIONSINAYEARIN
» 00PLANTAT0ARADIP2ElNERY+4!
Governance
FROM53!
9OUR #OMPANY EXPORTED MILLION TONNES OF PRODUCTS
IN
0RODUCT EXPORTS TO .EPAL ROSE FROM TO
6 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
ON DEEP DESULPHURISATION ISOMERISATION AND DIMERISATION Petrochemicals
TECHNOLOGYPATENTSDEVELOPEDIN
HOUSE
)NDIAN/ILISFASTEVOLVINGINTOAPETROCHEMICALSMAJORANDHAS
4HE 2$ #ENTRE ALSO COMMISSIONED A TONNES
PER
DAY REGISTEREDAROBUSTGROWTHINSALESIN
"ACKED
Chairman’s Desk
PLANT AT &ARIDABAD FOR CONVERTING ORGANIC WASTE TO BIOGAS
BYWORLD
SCALEPLANTSANDWORLD
CLASSTECHNOLOGY)NDIAN/ILS
WITH A METHANE CONTENT OF OVER BASED ON A NOVEL BIO
From the
METHANATIONTECHNOLOGYDEVELOPEDIN
HOUSE4HE#ENTREISALSO PROPEL BRAND PETROCHEMICALS COVER OVER OF A BROAD
COMMERCIALISINGA'ETHANOLPROCESSTOGETHERWITHANOVEL SPECTRUMAPPLICATIONSINPLASTICSANDAREEXPORTEDTOOVER
ENZYMEWHICHREDUCESETHANOLPRODUCTIONCOSTSBY COUNTRIES
9OUR #OMPANY INCURRED A CAPITAL EXPENDITURE OF 2S 9OUR #OMPANY HAS INVESTED HEAVILY IN THIS VERTICAL OVER THE
About IndianOil
CRORE IN
THE CAPITAL OUTLAY FOR THE CURRENT lSCAL IS
LASTTWODECADESINCURRINGACAPEXOFOVER2SCRORE
2SCRORE
Description of
• 0ETROCHEMICALSSALESIN
--4
Capitals
• 0RODUCTIONCAPACITYENHANCEDTO--4
• -AJORONGOINGPROJECTS
Board of
» !CRYLICACID/XO
ALCOHOLPROJECTAT'UJARAT
BUILDING NEW BUSINESSES » 0804!PROJECTAT0ARADIP
"ESIDES MAKING SIGNIlCANT INVESTMENTS IN UPSTREAM ASSETS » 0ETCOKEGASSIlCATIONIN0ARADIP
ANDPETROCHEMICALSWHICHAREMAKINGSIGNIlCANTADDITIONSTO » 4EXTILESPROJECTIN%ASTERN)NDIA
THE#OMPANYSBUSINESSINTERMSOFEQUITYOILANDPROlTABILITY
Directors’
» 0"2PROJECTAT0ANIPAT
Report
)NDIAN/ILISINTEGRATINGNATURALGASANDRENEWABLESINITSENERGY
VALUECHAININABIGWAYTOBEREADYFORALOW
CARBONFUTURE
Management’s
7ITH A BALANCED PORTFOLIO OF PRODUCING DISCOVERED AND
EXPLORATIONASSETSYOUR#OMPANYACHIEVEDSIGNIlCANTPROGRESS 0804!PLANTAND.APHTHA#RACKERAT0ANIPATAND00PLANTAT
IN TERMS OF 0 RESERVES PRODUCTION VOLUMES EQUITY OIL AND 0ARADIP!MONGTHEMAJORONGOINGPROJECTSARE-%'PLANTAT
REVENUESDURINGTHEYEAR
0ARADIPANDCAPACITYEXPANSIONOF.APHTHA#RACKERAT0ANIPAT
Responsibility Report
)NDIAN/IL CURRENTLY HAS PARTICIPATING INTEREST 0) IN )NDIAN/IL HAS lRM PLANS TO INVEST 2S CRORE ON
DOMESTIC AND OVERSEAS %0 ASSETS SPREAD ACROSS
VARIOUS ONGOING AND NEW PETROCHEMICAL PROJECTS TILL
COUNTRIES4HEYEAR
WASMARKEDBYACQUISITIONOF0)
Business
IN%0ASSETSIN/MAN!BU$HABIAND)SRAEL TO CONSOLIDATE BUSINESS 4HESE PROJECTS INCLUDE REVAMP
AUGMENTATIONOFEXISTINGCAPACITIESANDNEWPROJECTSASWELL
Heading upstream for energy security AS EQUITY INVESTMENT IN (INDUSTAN 5RVARAK 2ASAYAN ,TD Report on Corporate
(52,
• "ALANCEDPORTFOLIOOF%0ASSETSIN)NDIAAND
overseas 4HE)NDIAN/IL"OARDHASALSOACCORDEDAPPROVALFORA0LASTICS
Governance
• !CQUIREDPARTICIPATINGINTERESTIN%0ASSETSIN/MAN
Financial
!BU$HABIAND)SRAELIN
LANDFORTHETEXTILESPROJECT
8 Indian Oil Corporation Limited 2nd Integrated Annual Report
Alternative Energy
9OUR #OMPANY IS FULLY ALIGNED TO THE COUNTRYS ASPIRATIONS TO
TRANSIT TO CLEAN ENERGY AND HAS PLANNED 2S CRORE
INVESTMENTINGREENENERGYPROJECTS"ESIDESATARGETTOSCALE
UP ITS SOLAR ENERGYAND WIND
POWER PORTFOLIO TO -7 BY
THE YEAR )NDIAN/IL HAS INITIATED DIVERSIlCATION INTO
ALTERNATIVERENEWABLEENERGYANDBIO
FUELSn''ETHANOL
WASTE
TO
ENERGYANDCOMPRESSEDBIO
GAS#"'
9OUR #OMPANY IS SPEARHEADING THE 'OVERNMENTS INNOVATIVE
3!4!4 3USTAINABLE !LTERNATIVE 4OWARDS !FFORDABLE
4RANSPORTATION INITIATIVE LAUNCHED IN AS A WASTE
TO
WEALTH MEASURE 7ITH SIMILAR CALORIlC VALUE AND OTHER
"ACKED BY WORLD
SCALE PLANTS AND WORLD
CLASS TECHNOLOGY PROPERTIES #"' HAS THE POTENTIAL TO REPLACE #.' AS AN
)NDIAN/ILS 02/0%, COVERS OVER OF ALL CONCEIVABLE AFFORDABLEFUELINAUTOMOTIVEINDUSTRIALANDCOMMERCIALUSES
APPLICATIONSINPLASTICSANDISEXPORTEDTOOVERCOUNTRIES BYCONVERSIONOFBIOMASSORANYKINDOFORGANICWASTE)NFACT
THE EVOLVING #"' PROGRAMME WILL GO A LONG WAY IN REDUCING
Natural Gas )NDIASDEPENDENCEONCRUDEOILIMPORTS
.ATURALGASISTRANSFORMINGINTOAMAJORBUSINESSLINEFORYOUR
#OMPANYANDTHERECENTCOMMISSIONINGOFTHESTATE
OF
THE
ART
,.'IMPORTTERMINALAT%NNOREHASGIVENITABIGBOOST Green energy for a green future
!STHESECONDLARGESTPLAYERINTHISGROWINGSEGMENT)NDIAN/IL • 2SCROREINVESTMENTPLANNEDINALTERNATIVE
IS BUILDING INFRASTRUCTURE AND RETAIL NETWORKS TO REACH OUT TO ENERGYANDSUSTAINABLEDEVELOPMENTPROJECTS
ALL USER SEGMENTS INDUSTRY
TRANSPORT
HOMES
COMMERCIAL • 3OLARENERGYANDWIND
POWERPORTFOLIOTOBESCALEDUP
ESTABLISHMENTS FROM-7TO-7BYTHEYEAR
• ,/)SISSUEDFORPLANTSTOSUPPLYTONNESPERDAY
Fuelling the future with natural gas OF#"'UNDER3!4!4INITIATIVE
• .ATURALGASSALESIN
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SOLARENERGYIN
• #APACITYOF%NNORE,.'TERMINAL--40!
• #UMULATIVEINSTALLEDCAPACITYOF#OMPANYS
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• 4OTALTALLYOF'!SWITH)NDIAN/IL
• )NVESTMENTSIN#'$OVERNEXTYEARSINCLUDINGEQUITY
CONTRIBUTIONIN*6S2SCRORE
About the
Report
FUTURE-READY CORPORATE MAKEYOUR#OMPANYATRULYLEARNINGORGANISATIONWITHACCESS
TO BOTH NATURAL AND FORMAL DEVELOPMENTAL OPPORTUNITIES FOR
9OUR#OMPANYISIMPLEMENTINGANAMBITIOUS2SLAKHCRORE ALL%
LEARNINGISBEINGMAINSTREAMEDACROSSTHEORGANISATION
INVESTMENTSPLANINTHENEXT
YEARSTOEVOLVEINTOAFUTURE
AND)/#IANSACROSSFUNCTIONSAREBEINGACTIVELYENCOURAGEDTO
Chairman’s Desk
READYCORPORATETHATPROVIDESCOMPREHENSIVEENERGYSOLUTIONS ACQUIRENEWKNOWLEDGEANDSKILLSTOBEACTIVEPARTNERSOFAst
TODIVERSEUSERGROUPSINANEXCITINGPHASEOFENERGYTRANSITION CENTURYORGANISATIONFOCUSSEDONGROWTHOPPORTUNITIESOFTHE
From the
ANDTECHNOLOGYDISRUPTIONS FUTURE 7ITH THE ENTERPRISE GETTING INCREASINGLY YOUNGER NEW
ANDINNOVATIVELEARNINGMODELSAREBEINGDEPLOYEDTOENABLE
"ESIDES FOCUS ON RElNERY EXPANSIONS NEW TECHNOLOGIES FOR
)/#IANSTOCONTINUOUSLYIMPROVEPRODUCTSANDPROCESSES
CLEANFUELSENHANCEDOUTPUTSANDRElNERY
PETROCHEMICALS
INTEGRATION )NDIAN/IL IS AGGRESSIVELY LEVERAGING ITS 2$ 9OUR #OMPANYS BUSINESS STRATEGY HAS ALWAYS BEEN IN TUNE
About IndianOil
EXPERTISE TO MOVE INTO HORIZON TECHNOLOGIES LIKE ' ' WITH TECHNOLOGY AND INNOVATIONS 7E HAVE INSTALLED THE BEST
ETHANOL BIO
FUELS COAL GASIlCATION (
#.' (YDROGEN FUEL OF AUTOMATION PROCESSES AND THE LATEST SAFETY SYSTEMS AT
CELLS BATTERY TECHNOLOGIES ETC 4HESE TECHNOLOGIES ALONG OUR INSTALLATIONS /PTIMISED OPERATIONS AND LOGISTICS SMART
WITH CLEANER FUELS AND HIGHER ENGINE EFlCIENCIES CAN OFFER TERMINALS AUTOMATED FUEL SUPPLY POINTS AND A DEDICATED
SUSTAINABLESOLUTIONSTOTODAYSENERGYCHALLENGES lELDFORCEAREHELPINGUSLEADTHECOMPETITION7EHAVENOW
EMBARKED ON DIGITAL TRANSFORMATION OF THE ORGANISATION TO
Description of
+EEPINGTHISINVIEWYOUR#OMPANYISPURSUINGANUMBEROF
SERVEANDSUSTAINTHETRUSTOFOURBILLION
PLUSCUSTOMERSACROSS
NEWTECHNOLOGIESANDORPILOTSTUDIESINTHEAREASOFRElNERY
Capitals
CUSTOMERTOUCH
POINTS
PROCESSESPETROCHEMICALSPOLYMERSALTERNATIVEENERGYAND
BIO
ENERGYINCOLLABORATIONWITHREPUTEDPARTNERSIN)NDIAAND 9OUR#OMPANYS
STRONGTEAMREPRESENTSAFORMIDABLE
ABROAD ARRAYOFTALENTANDSKILLSTECHNICALANDMANAGERIALEXPERTISE
Board of
PHILOSOPHY BEHIND )NDIAN/ILS PIPELINE NETWORK EXPANSION
ANECO
SYSTEMOFGROWTHFORALL
ROUNDEXCELLENCEINOURPURSUIT
!NDASTHE#OMPANYGROWSITS,0'AND,.'VERTICALSRAPIDLY
TOCREATEHAPPYCUSTOMERSTHROUGHHIGH
QUALITYPRODUCTSAND
ITSGASPIPELINESNETWORKTOOISSETFORPHENOMENALGROWTH
SERVICESDELIVEREDEFlCIENTLY
9OUR #OMPANY ASPIRES TO BE A MAJOR PLAYER IN NATURAL GAS
'ENERATIONS OF )/#IANS HAVE HAD ONE THING IN COMMON n A
WITHLEADERSHIPINTHE2
,.'SEGMENTANDISTAKINGSTEPSTO
STEADFAST COMMITMENT TO THE IDEA OF )NDIA AND )NDIAN/IL
Directors’
ENHANCE ITS SHARE IN ,.' SOURCING IMPORT TERMINALS CROSS
AS @4HE %NERGY OF )NDIA !S WE COMPLETE YEARS OF OUR
Report
COUNTRY PIPELINES CITY GAS DISTRIBUTION NETWORKS AND BULK
OPERATIONS )CANCONlDENTLYSAYTHATTHEBESTOF)NDIAN/IL has
SUPPLIESBYROAD
TANKERS
JUSTBEGUN
Management’s
JOURNEYAHEAD
--40! CURRENTLY AND IS CONTINUOUSLY ON THE LOOKOUT
FOR ACQUISITION OF STAKES BOTH IN %0 COMPANIES AS WELL AS
INDIVIDUALASSETS
9OU MAY BE AWARE THAT YOUR #OMPANY HAD INCORPORATED
Responsibility Report
(INDUSTAN5RVARAK2ASAYAN,TD(52, IN*UNEAS
A JOINT VENTURE WITH #OAL )NDIA ,TD AND .40# FOR REVIVAL OF
Business
THREEFERTILISERPLANTSATANESTIMATECOSTOF2SCRORE
(Sanjiv Singh)
7ORKISPROGRESSINGATAFASTPACEONTHETHREEPLANTSLOCATED
Chairman
AT 'ORAKHPUR 5TTAR 0RADESH 3INDRI *HARKHAND "ARAUNI
"IHAR ANDCOMMERCIALPRODUCTIONOFNEEM
COATEDUREAFROM Report on Corporate
ALLTHETHREEPLANTSISLIKELYTOCOMMENCEINTHElRSTHALFOF
THEYEAR
Governance
4HEHUMANRESOURCECAPITALISBEINGLEVERAGEDINABIGWAYTO
10 Indian Oil Corporation Limited 2nd Integrated Annual Report
HIGHLIGHTS OF FY 2018-19
Financial Capital
Manufactured Capital
Product Sales CAPEX Fuel Stations
(including exports)
89.89
Over
648 Total Numbers
Human Capital
33,498 8,474
Dedicated Workforce
Employee Safety
8.56%
2,167 Over 3,000 Training Mandays
(Employees + Contract 1,23,754 Women in
Executives Recruited Training Programmes Workers) Employee Training Mandays Workforce
60th Annual Report 2018-19 11
About the
Report
Chairman’s Desk
Intellectual Capital
From the
107 Patents earned ` 498 crore
Robust patent filing enabled Estimated notional savings through R&D initiatives
About IndianOil
` 1,576
reach the milestone of 1000
patents in April 2019 crore/year
Total active patents: 790 Refinery Margin improvement from indigenously
developed technologies
13 441
Description of
New Start-up projects being funded
Capitals
Trained personnel on recent technological advancements
to enable technology and business
process re-engineering, besides
` 437.34 crore
Board of
` 490.60 Vidushi Gyanodaya Kaushal
crore
Scheme Vikas
CSR spend Divyangjan
Directors’
Scholarship for 1,138 Skill Development Institute,
Report
56 under-privileged girls
enrolled for free coaching under-privileged students Bhubaneswar, a premier Provided assistive
after XII from 30 ITIs/Polytechnics skilling centre of India devices to more
Management’s
crore than15,000 unemployed divyangjan
(out of whom, 17 cleared lakh students through
JEE Advanced & will get various educational projects youth (specially abled
Contribution to
exchequer in the form an opportunity to join IITs; persons) across
of taxes and duties balance 29 likely to join Jal Jeevan 21 States
Responsibility Report
NITs/IIITs) Drinking water facilities provided to over 10 lakh beneficiaries
Natural Capital
Business
Report on Corporate
Governance
71.3 MBN
216 MW
(167.6 MW Wind, 48.6 MW Solar)
Best ever specific
13,29,000 tCO2
Total installed capacity of
energy consumption
Mitigation of
renewable energy projects
greenhouse gas
12.87% 12.43% as on 31 March 2019
emissions through
Statements
footprint reduction footprint reduction Renewable energy generated transport of crude oil 2,10,000
at refineries against at refineries against (Solar and Wind) during and finished products Saplings planted to
2012-13 levels 2012-13 levels 2018-19 over transport by rail enhance green cover
12 Indian Oil Corporation Limited 2nd Integrated Annual Report
ABOUT INDIANOIL
Overview of the Company
IndianOil is India’s
K@QFDRSØQDÚMDQØVHSGØ@Ø
&QNTOØQDÚMHMFØB@O@BHSXØ
of 80.7 MMTPA
)NDIAN/ILIS)NDIASmAGSHIPINTEGRATEDENERGYMAJORFUELLING
ALLSECTORSOFTHEECONOMYANDALLSECTIONSOFSOCIETYWITHA
WIDERANGEOFPRODUCTSANDSERVICESCLOSESTTOTHEEND
USERS
THROUGHITSCOUNTRYWIDENETWORKOFCUSTOMERTOUCH
POINTS
)NDIAN/ILS BUSINESS INTERESTS STRADDLE THE ENTIRE
HYDROCARBONVALUECHAIN
FROMEXPLORATIONANDPRODUCTION
OF CRUDE OIL AND GAS TO RElNING PIPELINE TRANSPORTATION
AND MARKETING OF PETROLEUM PRODUCTS NATURAL GAS AND
PETROCHEMICALS BESIDES FORAYING INTO ALTERNATIVE ENERGY
ANDGLOBALISATIONOFITSDOWNSTREAMOPERATIONS
4HE #OMPANY HAS MAINTAINED ITS LEADERSHIP POSITION IN
THE COUNTRY BY CONSTANTLY ENHANCING ITS TECHNOLOGICAL
CAPABILITIES )T HAS A DIVERSIlED STRONG AND DEDICATED
WORKFORCEOFEMPLOYEESACROSSALLITSOPERATIONS
)NDIAN/ILDISTINGUISHESITSELFWITHITSOPERATIONALEXCELLENCE
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MOSTAFFORDABLY FortuneS@'LOBALLISTINGOFTHEWORLDSLARGEST
lRMSFORTHEYEAR
IndianOil’s Operational Performance (FY 2018-19)
About the
Report
IndianOil’s Operational Performance (FY 2018-19)
Chairman’s Desk
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• #UMULATIVELYREPLACEDLAKHCONVENTIONALLIGHTlTTINGS
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• #UMULATIVERAINWATERHARVESTINGSYSTEMSINSTALLEDWITH
Financial
/MAN APOTENTIALTOHARVESTBNLITRESOFRAINWATER
• 5PSTREAM)NTEGRATION2ATIOOF
14 Indian Oil Corporation Limited 2nd Integrated Annual Report
Geographical Presence
!S )NDIAS LEADING CORPORATE AND A DOMINANT PLAYER ACROSS A
DIVERSEPORTFOLIOOFENERGYOFFERINGS)NDIAN/ILHASESTABLISHEDITS
PRESENCEINDIVERSEMARKETSACROSSTHEGLOBE
BRANDS
That Make a Difference
)NDIAN/IL IS PURSUING DIVERSE BUSINESS INTERESTS WITH ITS
JOINT VENTURES WITH REPUTED BUSINESS PARTNERS FROM BOTH )NDIA
AND OVERSEAS 4HE #OMPANYS LEADING SERVO BRAND LUBRICANTS
ARE EXPORTED TO OVER COUNTRIES WHILE ITS PROPEL BRAND
New-Generation Branded Fuels
PETROCHEMICALSAREEXPORTEDTOOVERCOUNTRIES4HE#OMPANY
HAS ALSO OPENED NEW OVERSEAS OFlCES IN 9ANGON -YANMAR AND
$HAKA "ANGLADESH FOR EXPLORING OPPORTUNITIES IN MARKETING OF
lNISHED PETROLEUM PRODUCTS PETROCHEMICALS LUBRICANTS ETC IN
India's No.1 Lubricant brand EcoDrive with Auto LPG
Refuelling Services for Civil
Aviation and Defence Aircraft
THENEIGHBOURINGCOUNTRIESBESIDESDEVELOPMENTOFDOWNSTREAM
INFRASTRUCTURE
)NDIAN/IL IS EVALUATING MULTIPLE BUSINESS OPPORTUNITIES IN
"ANGLADESH-YANMAR.EPAL3AUDI!RABIA!ZERBAIJANAND!FRICA
The Largest P
Packed
acked
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PG Br
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rand in the Wo
World
W rld India's Premium
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m Petrochemicals
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$URINGTHEYEAR
-EMORANDAOF5NDERSTANDING-O5S
HAVEBEENSIGNEDWITHPARTNERSIN"ANGLADESHAND-YANMARFOR
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)NDIAN/ILS OVERSEAS %0 PORTFOLIO IS SPREAD OVER COUNTRIES
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f Autocare VIZ#ANADA'ABON)SRAEL,IBYA.IGERIA/MAN2USSIA5!%
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!S THE LEADING ENERGY SECTOR PLAYER )NDIAN/IL HAS A CRUCIAL ROLE
TO PLAY IN THE FAST
CHANGING INDUSTRY LANDSCAPE 4HE BUSINESS
ENVIRONMENTISINmUENCEDBYAMULTITUDEOFFACTORSRANGINGFROM
Innovative Loyalty Programmes
POLITICALECONOMICSOCIALTECHNOLOGICALLEGALTOENVIRONMENTAL
)NAPOLITICALLYVOLATILEGLOBALMARKETIMPACTEDBYMULTIPLEFACTORS
SUCHAS53
#HINATRADEWARTHEIMPOSITIONOFSANCTIONSON)RAN
BY THE 53 THE SOCIO
POLITICAL CRISIS IN 6ENEZUELA THE OIL GAS
BUSINESS IS BOUND TO FACE RISKS BOTH IN THE SHORT AND MEDIUM
TERMS /N THE ECONOMIC FRONT THERE HAS BEEN A CONSIDERABLE
INCREASEINTHEGLOBALENERGYDEMANDCOUPLEDWITHANINCREASE
INTHEPRODUCTIONANDCONSUMPTIONOFOILINSPECIlC)NCREASING
IMPORTSOFCRUDEOILALONGWITHRISINGINTERNATIONALPRICESHASLED
Thrust areas of IndianOil's CSR agenda TO HIGHER IMPORT BILLS FOR THE /IL -ARKETING #OMPANIES /-#S
Reaching out. Touching lives. 4HEREISASIGNIlCANTSHIFTINTHEPATTERNOFENERGYCONSUMPTION
TOWARDS CLEANER SOURCES SUCH AS NATURAL GAS AND RENEWABLES
,0' CONSUMPTION HAS SEEN ACCELERATED GROWTH OWING TO THE
'OVERNMENTSPUSHTOWARDSCLEANCOOKINGFUELFORALLHOUSEHOLDS
)NTHESOCIALENVIRONMENT@ACCESSTOAFFORDABLEENERGYHASBEEN
THEMAJORDRIVERFORPLAYERSINTHEENERGYSECTOR
%LECTRICANDSHAREDMOBILITYISAFAST
RISINGCONSUMERPREFERENCE
WHICHHASTHEPOTENTIALTODISRUPTTHETRANSPORTATIONINDUSTRYAND
MIGHTPOSEACHALLENGETOOILCOMPANIES$IGITALREVOLUTIONISRULING
THEROOSTTHROUGHBIGDATAANALYTICSARTIlCIALINTELLIGENCEBLOCK
60th Annual Report 2018-19 15
About the
Report
CHAINCLOUDCOMPUTING)NTERNETOF4HINGSINTHETECHNOLOGICALLY
ENABLED ENVIRONMENT !DOPTION OF )NDUSTRY BY LEADERS IN
THE SECTOR HAS PROVEN TO BE BENElCIAL IN BOOSTING MARGINS 4HE
'OVERNMENT THROUGH CONTINUOUS UPDATES OF REGULATIONS HAS
Chairman’s Desk
CREATED AN ENVIRONMENT ENCOURAGING COMPANIES ON ASPECTS OF
IMPROVING ENERGY EFlCIENCY REDUCING EMISSIONS AND BETTERING 6OLATILE
From the
PROCESS EXCELLENCE 4HE POLICY THRUST ON BRIDGING THE ENERGY GLOBAL
DIVIDE THROUGH FREE ,0' CONNECTIONS
Pradhan Mantri Ujjwala MARKETS
YojanaANDRURALELECTRIlCATIONSCHEME
SaubhagyaIS BRINGING
)MMINENT )NCREASING
INAPARADIGMSHIFT&URTHERASRURALINCOMESANDPROSPERITYRISE
CLIMATE ENERGY
About IndianOil
VEHICLE OWNERSHIP IS SET TO DRIVE FUEL DEMAND )NCREASING RURAL
EMERGENCY DEMAND
INCOMESAREDRIVINGOWNERSHIPOFCONSUMERAPPLIANCESWHICHIN
TURNARESETTOPUSHUPPETROCHEMICALSDEMANDINTHECOUNTRY
"USINESS
4HE'OVERNMENTSTARGETTOACHIEVEARENEWABLEENERGYPORTFOLIO
OF'7FOR)NDIABYTHEYEARHASRESULTEDINLARGESCALE %NVIRONMENT
DIVERSIlCATIONOFCOMPANIESINTOTHERENEWABLEENERGYBUSINESS
Description of
4HEENVIRONMENTALIMPACTOFOPERATIONSISNOWTHEHIGHESTPRIORITY
%VOLVING #HANGING
Capitals
AMONG ALL COMPANIES ACROSS SECTORS -AJOR ISSUES SUCH AS POOR
REGULATORY SOCIALGROWTH
AIRQUALITYANDINCREASINGTEMPERATUREAREMAKINGITINCREASINGLY
ENVIRONMENT DRIVERS
RELEVANTTOCOMPLYWITHTHE.ATIONALLY$ETERMINED#ONTRIBUTIONS
Board of
)N LINE WITH THE .$#S )NDIAN/IL HAS ALSO UNDERTAKEN VARIOUS
INITIATIVES SUCH AS INSTALLATION OF -7 OF RENEWABLE ENERGY
PROJECTS PLANTING OF SAPLINGS IMPLEMENTATION OF
ENERGY CONSERVATIONEFlCIENCY PROJECTS RESULTING IN A SAVING OF
` CROREDURINGTHEYEAR
Directors’
Report
GOVERNANCE
Management’s
A #OMPANY AND DISTINGUISHES IT FROM MANY OF ITS COMPETITORS #OMPANYAMONGTHEDIVERSESTAKEHOLDERS
)NDIAN/IL HAS NURTURED A CULTURE OF HIGH INTEGRITY WHERE EVERY
)NDIAN/ILSCORPORATEGOVERNANCEFRAMEWORKANDPHILOSOPHYSTEMS
EMPLOYEE IS HELD ACCOUNTABLE AND RESPONSIBLE FOR UPHOLDING
FROM ITS RESPONSIBILITY TOWARDS STAKEHOLDERS AND THE NEED TO
ETHICAL VALUES AND FOR CONDUCTING BUSINESS WITH UNWAVERING
CONDUCTBUSINESSINANETHICALTRANSPARENTANDFAIRMANNER
Responsibility Report
STANDARDSOFINTEGRITYEMBRACINGBOTHVALUESANDRULES
Business
Components of Policy Framework
Report on Corporate
and Senior Management Responsibility & Sustainable Enterprise Risk Integrity Pact to enhance Conduct, Discipline and
Personnel and their obligations Development Policy Management Policy transparency in business Whistle-Blower Policy Appeal Rules for officers
Policy on Related Party Policy for Determining Insider Trading in the Sensitive Information and Policy for Preservation of Dividend Distribution Human Resources
Financial
Transactions Material Subsidiaries Securities of IndianOil Disclosure Obligations Documents Policy Initiatives
16 Indian Oil Corporation Limited 2nd Integrated Annual Report
Board of Directors !DEQUATE NOTICE IS BEING GIVEN TO ALL $IRECTORS IN SCHEDULING
THE "OARD -EETINGS THE AGENDA ITEMS AND DETAILED NOTES ON
!N ACTIVE AND WELL
VERSED "OARD GOES A LONG WAY IN PROMOTING THEAGENDAITEMSAREBEINGSENTATLEASTSEVENDAYSINADVANCE
STAKEHOLDERS INTEREST AND SIMULTANEOUSLY UPHOLDING CORPORATE ANDAWELL
DElNEDPROCESSHASBEENESTABLISHEDFORSEEKINGAND
VALUES4HE"OARDSETSSTRATEGICGOALSANDSEEKSACCOUNTABILITYFOR OBTAINING FURTHER INFORMATION AND CLARIlCATIONS IF ANY ON THE
THEIRFULlLMENT4HE"OARDALSOPROVIDESDIRECTIONANDEXERCISES AGENDAITEMSBEFORETHEMEETINGANDFORMEANINGFULPARTICIPATION
APPROPRIATE CONTROL TO ENSURE THAT THE #OMPANY IS MANAGED IN ATTHEMEETING
A MANNER THAT FULlLS STAKEHOLDERS ASPIRATIONS AND SOCIETAL
EXPECTATIONS $URINGTHElNANCIALYEAR
"OARD-EETINGSWEREHELD
!DEQUATENOTICEWASGIVENTOALLDIRECTORSTOSCHEDULETHE"OARD
4HE"OARDOF$IRECTORSOF)NDIAN/ILISDULYCONSTITUTEDWITHPROPER -EETINGS !GENDA AND DETAILED NOTES ON AGENDA WERE SENT WELL
BALANCE OF %XECUTIVE 7HOLE
4IME $IRECTORS .ON
%XECUTIVE INADVANCEFORMEETINGSOTHERTHANTHOSEHELDATSHORTERNOTICE
0ART
4IME 'OVERNMENT .OMINEE $IRECTORS AND .ON
%XECUTIVE )NDIAN/IL HAS ADOPTED PAPERLESS BOARD MEETINGS AND AGENDA
0ART
4IME )NDEPENDENT $IRECTORS 4HE "OARD HAS A BALANCE OF ITEMSAREUPLOADEDONADIGITALPLATFORM"OARD0ORTAL WHICHARE
SKILLSEXPERIENCEANDDIVERSITYOFPERSPECTIVESAPPROPRIATETOTHE ACCESSEDBYTHE$IRECTORSELECTRONICALLYONTHEIRELECTRONICDEVICES
#OMPANY4HEIREXPERIENCERANGESFROMCOREOILGASRESEARCH INASECUREDMANNER
BUSINESSLAWlNANCEECONOMICSANDACCOUNTSTOADMINISTRATION
4HECURRENTCOMPOSITIONOFTHE"OARDISGIVENBELOW
4HECHANGESINTHECOMPOSITIONOFTHE"OARDOF$IRECTORSTHATTOOK
PLACE DURING THE YEAR
WERE CARRIED OUT IN COMPLIANCE
WITHTHEPROVISIONSOFTHE#OMPANIES!CT
About the
Report
.ON
%XECUTIVE'OVERNMENT.OMINEE$IRECTORS
Chairman’s Desk
From the
About IndianOil
3HRI!SHUTOSH*INDALYEARS 3MT)NDRANI+AUSHALYEARS
'OVT.OMINEE$IRECTOR 'OVT.OMINEE$IRECTOR
)!3/FlCER %LECTRONICS )%3/FlCER AND0OST
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Description of
Capitals
.ON
%XECUTIVE)NDEPENDENT$IRECTORS
Management’s
%NGINEERING,AW 0OST
'RADUATEIN4RANSPORT 'RADUATEIN0HYSICS 'RADUATEIN0HYSICS
$EVELOPMENT
Responsibility Report
Business
Report on Corporate
Governance
-ATHEMATICS
18 Indian Oil Corporation Limited 2nd Integrated Annual Report
Marketing
Strategies
Committee
Project & Planning LNG Dispute
for Deleasing Contracts
Evaluation Information & Projects Sourcing Settlement
of Immovable Committee
Committee Technology Committee Committee Committee
Properties
Oversight
Committee
4HE#OMMITTEESMEETATREGULARINTERVALSANDTAKENECESSARYSTEPS 0LEASEREFERTOTHE#ORPORATE'OVERNANCE2EPORTOFTHIS!NNUAL
TOPERFORMDUTIESASENTRUSTEDBYTHE"OARD4HEREISASEAMLESSmOW 2EPORT FOR DETAILS OF THE #OMPANYS PHILOSOPHY ON #ORPORATE
OF INFORMATION AS THE #OMMITTEES REPORT THEIR RECOMMENDATIONS 'OVERNANCEAND#OMPLIANCETHEREWITH
ANDOPINIONSTOTHE"OARDWHICHINTURNSUPERVISESTHEEXECUTION
OFTHERESPECTIVERESPONSIBILITIESBYEACH#OMMITTEE
60th Annual Report 2018-19 19
About the
Report
STRATEGY, RISK & OPPORTUNITIES
Strategy
Chairman’s Desk
)NDIAN/ILHASDEVELOPEDITSLONG
TERMSTRATEGICAPPROACHWITHTHE COMPETITIVEINTHEMARKET4HE#OMPANYALSOFOSTERSACONDUCIVE
OVERARCHINGOBJECTIVEOFOPTIMISINGSYNERGISTICVALUECREATIONFOR ENVIRONMENT FOR 2ESEARCH $EVELOPMENT AND INNOVATION TO
From the
ALLITSSTAKEHOLDERSANDMITIGATINGALLFUTURERISKS4HE#OMPANYS ENHANCE EFlCIENCY RELIABILITY PRODUCTIVITY AND SAFETY IN ITS
STRATEGYLAYSEMPHASISONKEEPINGPACEWITHTHEDYNAMICBUSINESS BUSINESS OPERATIONS 4HE #OMPANY IS COMMITTED TO PROVIDING
SCENARIO BEING AGILE AND RESPONSIVE IN ADAPTING TO GLOBAL AND ENERGY ACCESS TO THE RURAL POPULATION THROUGH ENHANCING ITS
DOMESTIC MARKET TRENDS AND MAINTAINING ITS LEADERSHIP POSITION GEOGRAPHICALREACH)NDIAN/ILHASDEVELOPEDAROADMAPANDACTION
INTHEMARKET PLANTOUSHERINCLEANANDGREENENERGYALTERNATIVESTOMITIGATETHE
About IndianOil
RISKSOFGLOBALWARMING
4HE#OMPANYSSTRATEGICINTENTISTOBEAFUTURE
READYORGANISATION
TO BE ABLE TO EXPLOIT EMERGING OPPORTUNITIES AND MITIGATE FUTURE 4HE HOLISTIC APPROACH AND INTENT OF THE #OMPANY IS TO BE @4HE
RISKS4OACCOMPLISHTHISOBJECTIVE)NDIAN/ILNURTURESACULTUREOF %NERGYOF)NDIAANDSUPPORTTHENATIONBYFULlLLINGITSCURRENTAND
INNOVATIONANDTECHNOLOGICALADVANCEMENTANDATTHESAMETIME FUTURENEEDSFORENERGYINITSVARIOUSFORMS
LEVERAGES ITS CORE COMPETENCE INFRASTRUCTURE AND REACH TO STAY
Description of
&ORTIFYING2ElNING-ARKETING
Capitals
"USINESS
• 3ECURING)NDIASFUTUREENERGYNEEDS
!LIGNMENT7ITH4RANSITION/FFERING
THROUGHGREENlELDANDBROWNlELD 4OTAL&UEL3OLUTIONS
Board of
ANDDISTRIBUTIONNETWORK • )NVESTINGTOIMPROVEFUELQUALITYTOMEETFUTURE
• #OMMERCIALISATIONOFPROCESS REGULATORYNORMS
• )MPROVINGCUSTOMER
TECHNOLOGIESANDNOVELPRODUCTS
SERVICEWITHVALUE
• !CHIEVINGAGREENERPRODUCTPORTFOLIOBY
DEVELOPEDINHOUSE
ADDEDPRODUCTS INVESTINGINALTERNATIVERENEWABLEFUELS
• )NVESTINGINRESEARCHINAREASOF
ANDSERVICES
BIO
ENERGYALTERNATIVEENERGYNANO
TECHNOLOGYANDPETROCHEMICALSTODERIVE
COMPETITIVEADVANTAGE
Directors’
Report
%NHANCING6ALUE0ROPOSITION
THROUGH)NTEGRATED6ALUE#HAIN
Management’s
%XPANDING'LOBAL/UTREACH • $EVELOPINGINTEGRATEDPETROCHEMICAL
DRIVERS OF
• 3COUTINGFORNEWOPPORTUNITIESFOR COMPLEXES
STRATEGIC
GLOBALPARTNERSHIPSINUPSTREAMAND • $EVELOPINGGASINFRASTRUCTUREAND
DOWNSTREAMBUSINESS
APPROACH MARKETINGNETWORK
Responsibility Report
• 3TRATEGICPARTNERSHIPSWITHLEADING
)NTERNATIONAL/IL#OMPANIESANDOR
.ATIONAL/IL#OMPANIESFORENHANCED
/PERATIONAL%XCELLENCE7ITHA
SYNERGY $IGITAL&UTURE
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• -AKINGOPERATIONSRESOURCE
AND
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• 2EDUCINGCOSTSANDENHANCINGSAFETY
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"USINESS
"UILDING3TRONG#OLLABORATIONS ENHANCEDPRODUCTIVITY
Governance
• 0ARTNERINGWITHOTHER#03%SFOR
SECURINGUPSTREAMOILGASASSETS
20 Indian Oil Corporation Limited 2nd Integrated Annual Report
Targets
Petrochemicals
TARGETS
„ World-class technology provider
Implementation Plan
2030
„ Increased investments in R&D
„ Setup Technology Implementation Cell with Targets
engineering design & troubleshooting capability „ Production capacity of 13 MMTPA
„ Second campus focussing on alternative energy „ Polymer market leadership
„ Collaborative R&D Implementation Plan
„ Realignment of marketing activities
Leadership in business verticals „ Consolidation through capacity expansion
„ Entry into niche grades segment
„ New complex as part of mega refinery project
Best Employer in India
on West Coast
Natural Gas
Among the top 100 in Fortune’s
‘Global 500’
Targets
„ Triple current market share in gas business
„ Leadership in R-LNG segment ROCE of 20%
„ 60 CGDs
Exploration & Production
Implementation Plan
„ Sourcing of equity gas Alternate Energy &
„ Judicious mix of long term and spot procurement Sustainable Development Targets
„ Domestic and transnational pipelines „ Equity Investment for 7MMTPA of oil & gas by
„ Develop import terminals/infrastructure 2023-24
Targets
„ Expansion to 11 MMTPA
„ Increase share of renewables in Company’s
energy basket Implementation Plan
„ Reduction in carbon and water footprints „ Strategic tie-ups with national and international
Overseas Business „ Develop alternative fuels business partners
„ Investments in countries of CIS, MENA, GCC
Implementation Plan
regions
Targets „ Scale up solar and wind-energy projects
„ Acquisition of producing assets
„ Increase overseas footprint to 8% of turnover „ Adopt energy efficiency, energy & water
„ Participation in domestic and overseas licencing
conservation measures
Implementation Plan rounds
„ Develop compressed bio-gas (CBG) business
„ Additional regional hubs in South Africa and
Nigeria „ Set up 2G ethanol plants
„ Agents/distributors in 20 countries to scout for
new business
„ Distribution infrastructure in overseas markets
60th Annual Report 2018-19 21
About the
Report
Risk Management
)NDIAN/IL OPERATES IN A HIGHLY DYNAMIC BUSINESS ENVIRONMENT ENVIRONMENT AND CONSULTS WITH 2ISK #HAMPIONS OF VARIOUS
DEPENDENT ON VARIOUS INTERNAL AND EXTERNAL DRIVERS WHICH BROADLY DIVISIONSDEPARTMENTSTOKEEPATRACKOFPOTENTIALRISKS4HESERISKS
Chairman’s Desk
ENCOMPASSES GEO
POLITICAL ENVIRONMENT CHANGING LAWS AND ARE FURTHER CLASSIlED INTO (IGH -EDIUM ,OW AND 2ISK ON 2ADAR
REGULATIONS TECHNOLOGICAL ADVANCEMENTS DISRUPTIVE INNOVATIONS AND CATEGORIES DEPENDING UPON THE PROBABILITY OF THEIR OCCURRENCE AND
From the
GROWING STAKEHOLDERS CONCERNS 4O DEAL WITH THIS EVER
CHANGING AND POTENTIAL IMPACT 4O MAKE THE MEASURING AND MONITORING SYSTEM
AGGRESSIVEBUSINESSPARADIGM)NDIAN/ILHASACOMPREHENSIVEROBUST ROBUST AND DYNAMIC EACH RISK IS ASSIGNED WITH +0)S WHICH IS
AND ALL
INCLUSIVE RISK MANAGEMENT FRAMEWORK THAT EMPOWERS THE CONTINUOUSLYREVIEWEDBY2-#")NCOMPLIANCEWITH3%")SLISTING
#OMPANYTODEALWITHANYPOTENTIALRISKANDAIDSINBECOMINGAFUTURE
REGULATIONS 2-#" PERIODICALLY SUBMITS RISK REVIEW REPORTS TO THE
READYORGANISATION 2ISK-ANAGEMENT#OMMITTEEOFTHE"OARD!CTIVITIESANDPROCESSES
About IndianOil
PERTAININGTORISKMANAGEMENTALONGWITHSTATUSAREALSOREVIEWEDBY
4HE #OMPANY HAS CONSTITUTED 2ISK -ANAGEMENT AND #OMPLIANCE
THE!UDIT#OMMITTEEANDTHE"OARD
"OARD 2-#" WHICH REGULARLY SCANS THE INTERNAL AND EXTERNAl
Major Risks*
Threat to Erosion in Cost and time Lack of Return on
Description of
market refining overruns in adequate producing E&P
Capitals
share margins projects infrastructure assets
Board of
• 0RODUCT
WISEGROWTHIN • )MPACTONMARGINSDUE • 4IMEANDCOST • !DDITIONALCAPACITY • 2ETURNON)NVESTMENT
MARKETSHAREVIS
¸
VIS TOVARIATIONINDEMAND OVERRUNS AUGMENTED
• 0RODUCTIONVOLUME
INDUSTRY • )MPACTONMARGINSDUE • MILESTONE • 5NMETDEMAND
• .UMBEROFNEWFUEL TOCRACKVARIATION ACHIEVEMENT • )NCREMENTAL -ITIGATION0LAN
STATIONSCOMMISSIONED • #RUDEPRODUCTMIX • ,OSSOFMARKET OPERATIONALCOST
• #OMPREHENSIVEDUE
Directors’
• 2EPEATSALESTO VARIATION OPPORTUNITIESMARGIN
Report
CUSTOMERSTHROUGH DILIGENCE
• 6ARIATIONIN3PECIlC -ITIGATION0LAN
LOYALTYPROGRAMMES %NERGY#ONSUMPTION -ITIGATION0LAN • #LOSEMONITORINGAND
• )NVESTMENTINNEW CONTROL
Management’s
• %NHANCINGREACHIN • %NHANCINGCONTROL CAPACITIES
RURALMARKETS • /PTIMISINGCRUDEOIL OVERPROJECTACTIVITIES
• $RIVINGCUSTOMER MIX • )MPROVEMENTIN
TRUSTTHROUGHLOYALTY • %XPLORINGNEWGRADESOF VENDORSELECTION
PROGRAMMES CRUDEOIL PROCESSCRITERIA
Responsibility Report
• $IFFERENTIATEDPRODUCT • 2EDUCINGFUELLOSS
GRADESSERVICES WHILEIMPROVING
• 4HRUSTONNON
FUEL DISTILLATEYIELD
Business
REVENUE • (EDGINGOFCRACK
MARGINS
Opportunity
$ESPITEGLOBALECONOMICSLOWDOWN)NDIANECONOMYWITNESSEDA ENERGYMIXANDTHENEEDFORINTERNATIONALCOOPERATIONANDFOREIGN
REMARKABLEGROWTHANDCONTINUEDTOBETHEFASTESTGROWINGLARGE INVESTMENT
ECONOMY4HISGROWTHWASATTRIBUTEDTOPRIVATESPENDINGINDUSTRY
4HOUGH IT IS EVIDENT THAT )NDIAS ENERGY DEMAND WILL GROW IN
MANUFACTURINGANDCAPITALFORMATION)NDIANECONOMYISEXPECTED
FUTURE THERE ARE CRITICAL CHALLENGES THAT THE COUNTRY MIGHT FACE
TOGROWINTHEYEARSTOCOMEALSOWHICHISAPOSITIVESIGNFORTHE
INMEETINGITSGROWINGENERGYNEEDSSUCHASBRIDGINGTHEENERGY
#OMPANY
DIVIDE PROVIDING ENERGY JUSTICE THROUGH ELECTRICITY AND CLEAN
4HE)NDIANENERGYSECTORHASTAKENALEAPFORWARDDUETOSUSTAINED COOKINGFUELACCESSTOMARGINALISEDGROUPSINTHEPOPULATION)N
ECONOMIC GROWTH COUPLED WITH RISING ENERGY DEMAND 0OLICY ITSPURSUITTOBE@4HE%NERGYOF)NDIATHE#OMPANYISGEAREDTO
REFORMS IN )NDIAN ENERGY SECTOR HAVE CREATED AN ATMOSPHERE OF LEVERAGEITSCAPABILITIESEXPERIENCEANDINNOVATIONTOACHIEVEITS
EXCITING OPPORTUNITIES FOR THE #OMPANY -AJOR POLICY DECISIONS LONG
TERMGOALSANDDRIVESUSTAINEDGROWTH
DURING THE YEAR WERE SHAPED BY ENVIRONMENTAL CONCERNS FOCUS
ONRENEWABLESANDALTERNATIVESIMPORTANCEOFNATURALGASINTHE
!CTION0LAN !CTION0LAN
Refining & Modern • 2AISINGTHEPERCENTAGEOFETHANOL
Marketing • !UGMENTINGRElNERYCAPACITY Bio-energy BLENDINGINPETROL
/PPORTUNITY • 5PGRADATIONOFPRODUCTQUALITY /PPORTUNITY • )NVESTINGINSETTINGUPOF
'ETHANOL
• &URTHERSTRENGTHENINGOFDISTRIBUTION PLANTSANDAPILOTFACILITYFOR
'
,ONG
TERMGROWTH 0OLICYFOCUSON
ANDMARKETINGINFRASTRUCTURE ETHANOL
INOILDEMAND MODERNBIO
ENERGY
• )NTEGRATIONOFRElNERYPROCESSESWITH
BIOFUELPRODUCTION
• )NVESTINGIN#OMPRESSED"IO
'AS
!CTION0LAN WASTE
TO
FUELTECHNOLOGIES
Petrochemicals • %XPANSIONCOLLABORATIONSAND
ACQUISITIONS
/PPORTUNITY
• 6ALUEADDITIONTOEXISTINGPRODUCTS
(IGH
GROWTHPOTENTIAL • $EVELOPMENTOFINTEGRATED Electric !CTION0LAN
FORPETROCHEMICALS PETROCHEMICALCOMPLEXES Mobility • %XPLORINGOPPORTUNITIESFOR
/PPORTUNITY MANUFACTURINGANDRETAILINGOF
BATTERIES
0OLICYTHRUSTON
!CTION0LAN ELECTRICMOBILITY
• 3ETTINGUPOFFASTCHARGING%6
STATIONS
Natural • 3CALINGUPANDINVESTINGINNATURAL
GASVALUECHAIN,.'IMPORT
Gas TERMINALS#ITY'AS$ISTRIBUTION#'$
/PPORTUNITY SEGMENTANDENHANCINGPIPELINE !CTION0LAN
0OLICYTHRUSTONGAS INFRASTRUCTURE
• %XPLORINGNEWAVENUES
,.'
Industry • $EPLOYINGDIGITALTECHNOLOGYINTHE
AND,.'BOOM
BUNKERINGOVERSEASBUSINESS,.' 4.0 DOMAINOFPREDICTIVEMAINTENANCE
BYROAD /PPORTUNITY REAL
TIMEINTEGRATEDDATADRONES
FORSURVEILLANCEWHICHCANREDUCE
-EGACHANGESIN COSTSENHANCEEFlCIENCYAND
OILGASINDUSTRY INCREASERELIABILITYANDSAFETYOF
!CTION0LAN OPERATIONS
Renewable • )NVESTMENTINWINDANDSOLARENERGY
Energy GENERATION
/PPORTUNITY
• )NVESTMENTIN2$TOBOOST
%XPANDEDROLE TECHNOLOGICALADVANCEMENTAND
OFRENEWABLESIN INNOVATIONINRENEWABLEENERGY
)NDIASENERGYMIX SEGMENT
60th Annual Report 2018-19 23
About the
Report
STAKEHOLDER ENGAGEMENT AND MATERIALITY
Stakeholder Engagement
Chairman’s Desk
)NDIAN/IL NURTURES A BUSINESS ENVIRONMENT WITH AN UNDERLYING )NDIAN/IL ENGAGES WITH A DIVERSE RANGE OF INTERNAL AND EXTERNAL
BELIEFTHATEVERYSTAKEHOLDEROFTHE#OMPANYISATRUSTEDBUSINESS STAKEHOLDERS SPREAD ACROSS GEOGRAPHIES IN A PERIODIC AND
From the
PARTNERANDACRUCIALELEMENTINTHEVALUECHAINOFTHE#OMPANY STRUCTURED MANNER USING VARIOUS MODES OF ENGAGEMENT 4HE
4HE #OMPANY BELIEVES THAT EFFECTIVE STAKEHOLDER ENGAGEMENT IS #OMPANYMAINTAINSASYMBIOTICANDSYNERGISTICRELATIONSHIPWITH
VITAL FOR THE SUSTAINED GROWTH OF BUSINESS AND IS THE FOUNDATION ITS STAKEHOLDERS BY EMBRACING A PEOPLE
CENTRIC APPROACH WHICH
OF GOOD CORPORATE GOVERNANCE 4O KEEP THE #OMPANY ABREAST OF HELPS IN IDENTIFYING THE UNIQUE AND DISTINCTIVE PRIORITIES OF THE
About IndianOil
THE DYNAMIC EXPECTATIONS OF THE STAKEHOLDERS TO GARNER THEIR STAKEHOLDERS)TALSOENABLESTHE#OMPANYTODEVELOPABUSINESS
FEEDBACKANDTOUNDERSTANDANDADDRESSTHEIRSPECIlCCONCERNS STRATEGYTHATOPTIMISESVALUECREATIONFOREACHSTAKEHOLDER
IT IS ESSENTIAL TO INSTITUTE A TRANSPARENT ROBUST AND EFlCIENT
STAKEHOLDERENGAGEMENTPROCESS
Description of
Capitals
Directors and others
Financial Regulatory
Institutions Shareholders Employees Customers bodies
Board of
Investors' Meet, Annual General Events, Seminars, Customer Care Meetings, Industry
Annual General Meeting, Corporate Periodicals, Programmes, Forums, Regular
Meeting, Road Shows, Website, Sustainability Workshops/Training Grievance Redressal Updates
Directors’
Corporate Website, Reports, Grievance Programmes, Forums, Helpline
Report
Conference Calls Redressal Mechanism, Employee-centric Numbers, Public
Annual Report, Social Applications, Hearing, Corporate
Management’s
Responsibility Report
Business
Industry / Trade Business Partners/
Associations Contractors Community
Report on Corporate
4HROUGHEFFECTIVESTAKEHOLDERENGAGEMENTANDCOLLABORATION)NDIAN/ILAIMSATTHEFOLLOWING
Materiality
!SPARTOFITSLONG
TERMSTRATEGY)NDIAN/ILCONDUCTEDAMATERIALITY AREPRIORITISED(IGH-EDIUMAND,OW BASEDONTHEIRPOTENTIAL
ASSESSMENT EXERCISE TO IDENTIFY ISSUES THAT ARE MATERIAL TO THE IMPACT ON BUSINESS AND IMPORTANCE TO THE STAKEHOLDERS 4HE
#OMPANY AS WELL AS TO ITS STAKEHOLDERS 4HROUGH CONTINUOUS #OMPANYHASDEVELOPEDANACTIONPLANANDHASTAKENINITIATIVES
ENGAGEMENT AND EXHAUSTIVE DELIBERATIONS WITH INTERNAL AND TO ADDRESS THESE MATERIAL ISSUES ON PRIORITY 4HE MATERIAL ISSUES
EXTERNAL STAKEHOLDERS )NDIAN/IL IDENTIlED MATERIAL ISSUES WITHTHEHIGHESTPRIORITYALONGWITHACTIONSTAKENBYTHE#OMPANY
UNDERFOURBROADCATEGORIESVIZ%CONOMIC%NVIRONMENTAL3OCIAL AREENLISTEDINTHEREPORT
AND #ORPORATE 'OVERNANCE #OMPLIANCE 4HESE MATERIAL ISSUES
3PILLS 0RODUCTAND/PERATIONAL%FlCIENCY
3ECURITY
0RACTICES 7ATER-ANAGEMENT %MISSION-ITIGATION #OMPETITION #YBER3ECURITY
-EDIUM
%CONOMIC 2EGULATORY,EGAL
0ERFORMANCE #OMPLIANCE 7ASTE-ANAGEMENT %NERGY4RANSITION #HALLENGES
%MPLOYMENT
(UMAN2IGHTS ,ABOUR-ANAGEMENT
0RACTICES
About the
Report
Key material issues and initiatives
Material Issues Key Initiatives taken by IndianOil
Chairman’s Desk
From the
„ Increasing customer focus and enhancing customer experience with IndianOil
„ Ensuring timely supplies through different interventions
Customer Satisfaction
„ Capturing customer feedback and redressing customer grievances in a timely manner
„ Motivating staff at fuel stations to provide better customer support and service
About IndianOil
„ Reducing lead time of delivery through intermediate storage of products
Supply Chain „ Optimisation of dispatch quality & quantity through centralised automation
Management „ Supporting vendors to become more efficient and minimise ecological footprint
through fuel stations automation & solarisation and installation of GPS in tank-
Description of
trucks
Capitals
„ Implementing LED initiative (replacement of 4.5 lakh conventional luminaries
with LED)
Energy Efficiency
Board of
„ Standardisation of brands and publication of Brand Book
„ Branding and promotional initiatives
Brand Value
„ Tracking of customer sentiments on social media
„ Focus on customers through loyalty programmes
Directors’
Report
„ Undertaking external safety audits
Management’s
„ Conducting Hazard and Operability (HAZOP) Studies
Responsibility Report
„ Adhering to air, water, green-belt and other environment-related compliances
Managing
„ Reducing emissions from product/service offerings
Environmental Impacts
„ Foraying into production and marketing of clean energy sources
BUSINESS PROCESSES
Customers
Research
Innovation
Pipelines
&
Technology
People
Passion Pe
tro
ch
em s& s Innovation
ica Ga ative
ls ern
Trust Alt
Environment
Our Values drive our Vision, our Vision fuels our Business Process
60th Annual Report 2018-19 27
About the
Report
OUTPUTS
Chairman’s Desk
Financial Capital Manufactured Capital Intellectual Capital
Generated revenue of 71.82 MMT of crude oil 160 patents filed and 107 earned
From the
` 6,05,924 crore throughput (2018-19); Total active patents = 790
from operations
Pipeline network achieved 88.53 H-CNG ensures fuel economy benefits
Profit for the Year MMT throughput and 1834 and reduces CO and HC emissions
` 16,894 crore MMSCM of gas throughput
Reduced emissions and production of
About IndianOil
EBITDA: ` 36,952 crore Production volume from E&P high-value products like DHA Omega-3
assets rose from 2.66 MMT to along with bio-diesel
4.39 MMT
Description of
More than 1.15 crore beneficiaries Potential created for harvesting
Out of 56 girls, 46 cleared JEE Main (out of about 3 billion litres of rainwater
Capitals
whom, 17 cleared JEE Advanced, balance 29 per year
likely to join NITs/IIITs) Renewable energy generation of
Attrition rate: less than 1% Through skill development, 388 GWh
Board of
more than 14 lakh beneficiaries 82,078 MT Standard Refinery
‘Graduation Ceremony’ Assistive devices provided to more than Fuel per annum, equivalent to
20,000 divyangjan across 21 States ` 135.3 crore/year
OUTCOMES / BENEFITS
Directors’
Report
Financial Capital Manufactured Capital Intellectual Capital
Ensuring energy security to the nation ®
IndeDiesel technology earned Petrotech-2019
Management’s
transporting crude / finished products as
` 1,93,422 crore paid to compared to road / rail transport resulted in Innovative technologies such as ‘CO2-to-lipids
the exchequer in the form savings of 13,29,271.83 tCO2e plant’ and ‘H-CNG technology’ offer a
of duties and taxes of emissions significant opportunity to reduce greenhouse
gas emissions
Upstream integration and
Responsibility Report
Debt Equity ratio improved
from 1.3 to 0.79 over the reduced import dependence Established innovative technology and business
years process re-engineering ideas through start-ups
Business
Human Capital Social & Relationship Capital Natural Capital
Making people ‘Future-Ready’ More girls in Engineering Harvested rainwater equivalent to 3% Report on Corporate
through focussed developmental colleges of IndianOil’s freshwater consumption
initiatives
Skilled manpower made Renewable energy generation is
Governance
DESCRIPTION OF CAPITALS
FINANCIAL CAPITAL
250000 1.00
0.79
200000
0.60 0.53 0.75
0.55
150000
86359
52880 54820 58030 0.50
100000
0 0.00
2015-16 2016-17 2017-18 2018-19
About the
Report
Consistent growth in top line
Chairman’s Desk
2EVENUEAND0ROlTABILITY` crore)
From the
700000 50000
43114
36952
600000 35989
40000
About IndianOil
500000
23371 30000
400000
Description of
200000
10000
Capitals
100000
0 0
Board of
2EVENUE` CRORE %")4$!` CRORE
Directors’
Report
Consistent increase in contribution to Government
Responsibility Report
50000 250000
40538 37545 179014 190670 193422
Business
40000 200000
33344
132064
30000 150000
23753 Report on Corporate
20000 100000
Governance
10000 50000
0 0
2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19
70000
60018
60000
51109
50000
39940
40000
30714
30000
20000
9226 11169
8909
10000
3399
0
2015-16 2016-17 2017-18 2018-19
6.51
60 7
5.81
4.91 6
50
5
40
3.56 4
30
30 48 52 53 3
20
2
10 1
0 0
2015-16 2016-17 2017-18 2018-19
$IVIDEND0AYOUT2ATIO $IVIDENDYIELDON#LOSING-ARKET#AP
60th Annual Report 2018-19 31
About the
Report
Input-Output-Outcome
Inputs Outputs Outcomes
Chairman’s Desk
%QUITY 2EVENUE IndianOil has been consistently the largest contributor to the national and state exchequers
From the
` 1,08,658 crore ` 6,05,924 crore IN THE FORM OF DUTIES AND TAXES $URING
` 1,93,422 crore was paid to the
exchequers in the form of duties and taxes, ` 2,752 crore more than previous year.
$EBT` 86,359 %")4$!
crore ` 36,952 crore )NDIAN/ILHASMADETHEFOLLOWINGCONTRIBUTIONTOSTAKEHOLDERS
About IndianOil
` 4,98,180 crore ` 16,894 crore • #OMMUNITY#32 ` 491 crore
• 0ROVIDERSOF#APITAL
Investment in other #ASH%03
» )NTERESTTOLENDERS` 4,311 crore
GROUPENTITIES ` 25.85
` 18,874 crore » $IVIDENDTOSHAREHOLDERS` 8,909 crore
$IVIDEND0AY
OUT
» 2ETURNOF#APITALTHRU"UYBACK` 4,435 crore
2ATIO
Description of
IndianOil also rewards its equity stakeholders consistently through healthy dividend
payouts over the period.
Capitals
)NDIAN/ILHASMAINTAINEDITS$EBT%QUITYRATIOBELOWOVERTHELASTYEARS
$URINGTHEYEARTHE#OMPANYHASRAISEDLONG
TERM%#"LOANSOF53$BILLIONTHROUGH
Board of
AMOUNTMOBILISEDBYANY)NDIAN035UNDER2EG3FORMATINASINGLETRANCHE
-OODYSHASAFlRMED)NDIAN/ILRATINGASh"AAv3TABLE WHILE&ITCHHASREAFlRMEDTHE
RATINGOFh"""
vWHICHSIGNIlESTHE#OMPANYSSTRONGOPERATIONALANDSTRATEGICLINKAGES
INLINEWITH&ITCHS0ARENT
3UBSIDIARYLINKAGECRITERION2ATINGPROVIDEDISSAMEAS)NDIAS
3OVEREIGNRATING
Directors’
Report
MANUFACTURED CAPITAL
Responsibility Report
milestones in developing infrastructure, which in turn has accelerated CAPACITY AND --3#-$ OF GAS PIPELINE CAPACITY )NDIAN/IL
the Company’s growth trajectory. This infrastructure growth is also has also registered the highest sales of 79.96 million metric tonnes
enabling the Company in meeting the future energy needs of the of petroleum product sales this year. The petrochemical’s sales
Business
nation. INCREASED BY TO --4 WHILE THE SALE OF CRYOCANS AND
cryovessels increased to 29,555 units from 28,872 units.
IndianOil leverages its extensive infrastructure to hold a competitive
Report on Corporate
market position in the oil & gas industry. To sustain its market The Company manufactured and sold 1,83,194 metric tonnes of
leadership, the Company is consistently investing in several major EXPLOSIVES DURING THE YEAR RECORDING A GROWTH OF OVER THE
Governance
ANDMINORPROJECTS4HE#OMPANYINCLUDINGITS*6SANDSUBSIDIARIES previous year’s volume of 1,76,757 metric tonnes. To expand its
has invested over `28,100 crore during the year to add to its reach in rural parts of India, the Company opened 335 ‘Kisan Seva
infrastructure facilities. Kendra’ outlets in rural areas.
The Company achieved the highest ever crude oil throughput of In its quest to be ‘The Energy of India,’ IndianOil is preparing itself,
MILLIONMETRICTONNESWITHACAPACITYUTILISATIONOF through augmenting infrastructure and building capacity, to meet
$ISTILLATEYIELDOFTHERElNERIESWAS4HERElNERIESAREWELL the changing energy needs of the consumers in an environmentally
Statements
AS WELL AS TO MEET THE )-/ )NTERNATIONAL -ARITIME /RGANISATION
2020 guidelines to reduce the sulphur content in bunker fuel.
32 Indian Oil Corporation Limited 2nd Integrated Annual Report
Case Studies
Highlights of Refinery Projects
• This project will leverage the latest IT tools to enhance the organisation’s productivity and market
iDrive SHAREWHICHWILLRESULTINPOTENTIALVALUECREATIONOF53$
"N
(A digitalisation • #OMPANYHASIDENTIlEDINITIATIVESACROSSTHEMESTOBRIDGETHETECHNOLOGYGAPINCLUDING
INITIATIVEOF2ElNERY drone-based pipeline monitoring, virtual reality based e-learning, block chain inspired supply
chain tool, etc.
• !$IGITAL#ENTREOF%XCELLENCEISBEINGDEVELOPEDTOENABLETECHNOLOGYTRANSFORMATION
World’s
Longest LPG • 4HEPIPELINEWILLEXTENDFROM+ANDLA'UJARAT TO India’s First • 4HEPIPELINEWILLCONNECT-OTIHARI
Pipeline 'ORAKHPUR5TTAR0RADESH WITHPIPELINELENGTHOF Trans- "IHAR TO!MLEKHGANJ.EPAL WITH
(being 2,757 km National KMLENGTHAND--40!CAPACITY
implemented • 7ITH--40!CAPACITYTHISPIPELINEWILL Pipeline • /NCEFUNCTIONALITWILLTRANSPORT-3
through JV CONNECTPORTSRElNERIESBOTTLINGPLANTS (3$3+/!4&TO.EPAL
Company) DIRECTLYACROSS'UJARAT-ADHYA0RADESHAND5TTAR • Estimated cost of the project is `324
0RADESH crore
• Estimated cost of the project is `10,088 crore
New Polymer
• $URING
)NDIAN/ILDEVELOPEDTHREEGRADES%'-,3
Development
• /%-APPROVALRATEDURINGTHEYEARJUMPEDTOFROMINTHEPREVIOUSlNANCIALYEAR
• -AJORSECTORSCOVEREDUNDER/%-APPROVALSARE&-#'!PPLIANCEAND!UTOMOTIVE
About the
Report
Growth Highlights of Manufactured Capital
Chairman’s Desk
90
From the
79.97
80 77.13
2EGULAR2/S 74.11 4.64 4.84
0.96
19,845 3.74 0.76 3.21
About IndianOil
70 0.65 3.24
3.31 4.81
4.47
3.95 3.09
+3+S 2.72 0.50
60 2.68 0.49
7,857 0.50
11.54
10.12 10.84
50 2.59 2.34
Consumer 3.60
Description of
0UMPS ,0'
Capitals
$ISTRIBUTORS 40
6,960
11,964
30 35.41 36.51 37.08
Board of
!&3
116 4ERMINALS$EPOTS 10
125 10.15 10.87 11.60
0
,0'"OTTLING0LANTS &9
&9
&9
Directors’
3+/,$/$EALERS
Report
91
3,889 -3 (3$ 3+/ ,0' ,UBES
Management’s
Share of BS-VI in Production Vs. Capital Expenditure
Over the period (2017-18 and
going forward):
Responsibility Report
Cumulative Capital Expenditure (` CRORE 14910.62
OF"3
6)OFTOTAL(3$0RODUCTION • Company is transitioning from
OF"3
6)OFTOTAL-30RODUCTION "3
)6 TO "3
6) BY INVESTING IN
Business
technology and infrastructure
9758.49
development
• 3HARE OF "3
6) IN (3$ Report on Corporate
PRODUCTION HAS RISEN TO
ANDWILLBEENHANCEDTO
Governance
5387.52
INTHENEXTlNANCIALYEAR
• -3PRODUCTIONHASSHAREOF
1681.33
"3
6)PLANHASBEENLAIDDOWN
TO ENHANCE THIS SHARE
BYNEXTlNANCIALYEAR
Statements
0LANNED forward
34 Indian Oil Corporation Limited 2nd Integrated Annual Report
3NAPSHOTOF2ElNING/PERATIONS
65191 71816
78.16 69001
76.72
81.88 72.56 71.3
53586
58007 32732
Processing/Production (TMT)
31325
28938 38361 39415
33627
26407
24040 27672
26865
10896
10159
8522
3938 7064 3982 3660 2718 2574
6422
2882 3132 3053 2905 2724
140 16000
14231
120 13391 14000
12848
11746 12000
100 21.69
9.5 9.5
9.5 10000
80 67.1 75.6
48.6 8000
60.46
48.6
60 40.4 48.6
49.5
6000
40 0.7 0.7 1.8 1.97
4000
20 44.39 44.39 44.39 43.59
2000
0 0
2015-16 2016-17 2017-18 2018-19
About the
Report
Input-Output-Outcome
Inputs Outputs Outcomes
Chairman’s Desk
• RElNERIES • --4OFCRUDE • Ensuring energy security to the nation
From the
--40! THROUGHPUTWITHRElNERY » !CCOUNTSFOROVERMARKETSHAREIN-3AND(3$
OFRElNING capacity utilisation of » !CCOUNTSFORHALFOFTHEMARKETSHAREFOR,0'COOKINGGAS
capacity
VIS
¸
VISIN » !CCOUNTSFORMARKETSHAREINAVIATIONFUEL
&9
» Ensuring energy access across the length and breadth of
the country
About IndianOil
• 5NDERTAKINGWIDE
SCALE
UPGRADATIONOFRElNERY • 5LTRA
CLEAN"3
6)FUELWITHREDUCTIONIN3/XEMISSIONFROM
50 ppm to 10 ppm. The fuel also offers lower particulate and
TECHNOLOGYTODELIVER"3
6)
./XEMISSIONS
compliant fuel
• '2-BBL.ELSON#OMPLEXITY)NDEX
• INCREASE IN PROCESSING OF CHEAPER HEAVY AND HIGH
4!.
grades over the previous year
Description of
Capitals
• Over 50,000 • --4OFPETROLEUMPRODUCTS • !CCESSTOCLEANERSOURCESOFENERGYANDREDUCTIONININDOORAIR
customer sold in the domestic market pollution
touch-points
Board of
• 14,231 km • .ETWORKACHIEVED--4 • !N EFlCIENT AND CONVENIENT MODE FOR TRANSPORTING CRUDE OIL
pipelines THROUGHPUTAND--3#-OF lNISHED PRODUCTS AS COMPARED TO ROADRAIL TRANSPORT RESULTED
network gas throughput in notional saving of 13,29,272 tCO2e of emission reduction
Directors’
complexes products sold during 2018-19 • 0RODUCTS COVER OVER OF ALL CONCEIVABLE APPLICATIONS IN
Report
plastics
• Continuous expansion to new geographies while offering new and
Management’s
• ,.'IMPORT • --40!,.'IMPORT • 0ROVIDINGACCESSTOLOWCARBONINTENSITYFUELACROSS)NDIA
terminal (through a terminal commissioned in
*6COMPANY • Increasing the gas mix
-ARCH
Responsibility Report
Business
• /PERATING • $EVELOPMENTOFROBUSTGAS • 5NINTERRUPTEDSUPPLYOFPIPEDNATURALGAS0.' ASCOOKINGFUEL
implementing City infrastructure across densely to individual households
'AS$ISTRIBUTION POPULATEDURBANSEMI
URBAN
#'$ .ETWORKSIN • 3UBSTITUTING CONVENTIONAL FUELS WITH LESS POLLUTING NATURAL GAS Report on Corporate
11 Geographical areas FORINDUSTRIALCUSTOMERSANDPROMOTING#.'ASAUTOFUEL
!REAS'!S
Governance
THROUGHTWO*6S
blocks
36 Indian Oil Corporation Limited 2nd Integrated Annual Report
HUMAN CAPITAL
Driven with the zeal to be future-ready
Our people are our most valued asset. It is only with the determination and dedication of our people that we can serve our customers,
GENERATELONG
TERMVALUEFOROURSHAREHOLDERSANDCONTRIBUTETOTHEBROADERPUBLIC!TTHECRUXOFOUREFFORTSISHOLISTICANDMEANINGFUL
employee engagement and their right development that can catalyse the emergence of the highest potential of IndianOil employees.
Our policies have been institutionalised aiming at both - employee engagement and making our people ‘future-ready’. We constantly
embed our values of Care, Innovation, Passion and Trust among our people and thus create an ambience of openness, enthusiasm and
VIBRANCYWITHINTHEORGANISATION!DDITIONALLYCONSISTENTEMPATHYANDEMOTIONALOWNERSHIPHELPUSACHIEVEEMPOWEREDANDHAPPYTEAMS
This, combined with our well-entrenched people processes, ensures that we not only attract but also retain the best talent in the industry.
IndianOil has been conferred the ‘Human Resources Management – Company of the Year’ Award by the Federation
of Indian Petroleum Industry (FIPI).
Partner Institutes
IndianOil voted as one of the Top 50 best companies to work for in India
60th Annual Report 2018-19 37
About the
Report
Staff attrition rate-less than 0.12%
Chairman’s Desk
0.125
0.12
From the
0.12
0.115 0.11 0.11 0.11
0.11
0.105
0.1
0.1
About IndianOil
0.095
0.09
2014-15 2015-16 2016-17 2017-18 2018-19
Description of
Training Mandays
Capitals
2018-19 4.21
2017-18 4.20
2015-16 2.45
Board of
2014-15 2.31
Directors’
Report
Average age of employees (in years)
45
Management’s
43
42
42
41
40
39
Responsibility Report
39
38
37
Business
36
2014-15 2015-16 2016-17 2017-18 2018-19
11102
12000
9719 10079
10000
7114
8000
6000
4000
2000
Statements
Financial
0
2015-16 2016-17 2017-18 2018-19
38 Indian Oil Corporation Limited 2nd Integrated Annual Report
E-learning
IndianOil has introduced a structured technology-aided e-Learning platform catering to the functional learning and development
needs of employees. The objective of this initiative is to provide continuous functional inputs.
!S ON -ARCH CUSTOMISED E
MODULES ON 2ElNERIES -ARKETING 0IPELINES 2$ "USINESS $EVELOPMENT AND
#ORPORATE FUNCTIONS HAVE BEEN UPLOADED %VENTUALLY THE E
,EARNING 0LATFORM WILL BE AVAILABLE ON INTERNET
BASED LEARNING
management system for ‘anytime’, ‘anywhere’, ‘any-device’ learning to employees.
Case Studies
About the
Report
Women Leadership Development
Chairman’s Desk
From the
About IndianOil
IndianOil has conceptualised and introduced a ‘one-of-its-kind’ » UNDERSTANDINGHOWOTHERWOMENLEADERSROLEMODELS ACROSS
Description of
initiative aimed at long-term all-round development of a select varied industries coped with their professional roles
group of women leaders at the middle management level, which
Capitals
» BUILDINGASUPPORTNETWORKGROUPAMONGSTWOMENLEADERS
includes an overseas learning module where the participants visited
» becoming more effective at the workplace
THE #OMPANYS OFlCES IN 3RI ,ANKA AND -AURITIUS 4HE UNIQUE
endeavour facilitated enhancement of leadership capabilities of » developing an action plan for performance excellence and
» ENHANCINGTHEIRSELF CONlDENCE
Board of
» directing their passion to grow and contribute to the
organisation
Input-Output-Outcome
Directors’
Inputs Outputs Outcomes
Report
• 4OTAL7ORKFORCE%XECUTIVES • !TTRITIONRATELESSTHAN • Through e-learning modules, provided
Management’s
43 years to 39 years device’ learning to employee
• 1,23,754 employee training mandays
• In-depth study helped in • "ENCHMARKINGSTUDYPROVIDEDAROAD
• Introduced structured technology-aided
benchmarking IndianOil’s map for implementing workforce
E
,EARNINGPLATFORMCATERINGTOTHEFUNCTIONAL
(2PROCESSESINAREASLIKE practices that can enhance consistency
learning and development needs of employees
& transparency and help create an
Responsibility Report
3TAFlNG7ORK%NVIRONMENT
• #ONDUCTEDASTUDY@"ENCHMARKINGOF(2 enabling organisational culture
0ERFORMANCE-ANAGEMENT
0RACTICES
4RAINING$EVELOPMENT • Creating future leaders by sponsoring
• &OCUSSEDINITIATIVESUNDERTAKENINCLUDING(2 #OMPETENCY!NALYSIS OFlCERSFORHIGHERSTUDIES
Business
Facilitator initiative $EVELOPMENT7ORKFORCE • 0ROMOTINGWOMENLEADERSTHROUGH
• Conceptualised and introduced ‘one-of-its- 0LANNING0ARTICIPATORY 7OMEN,EADERSHIP$EVELOPMENT
KIND7OMEN,EADERSHIP0ROGRAMME #ULTURE-ENTORINGETC 0ROGRAMME Report on Corporate
• -AINCAMPUSOF3KILL$EVELOPMENT)NSTITUTE • 20 enthusiastic and proud • Ensuring respect towards all employees
3$) "HUBANESWARMANAGEDBY)NDIAN/IL )/#IANSWOMENLEADERS BYLAUNCHOFh%QUAL/PPORTUNITY0OLICYv
Governance
INTELLECTUAL CAPITAL
Empowered by Innovation
)NDIAN/ILSTHRUSTONINNOVATIONANDRESEARCHISOFPARAMOUNTIMPORTANCEINREINFORCINGTHE#OMPANYSOPERATIONALEFlCIENCYANDRESOURCE
optimisation drive. The Company has been focussed on developing, demonstrating and deploying novel, innovative, environment-friendly,
customer-centric products and process technologies for addressing energy-related issues of national importance with sustained emphasis
on rendering technical support to its divisions to achieve business goals.
In accordance with its corporate vision of being ‘The Energy of India’, IndianOil is actively pursuing research in alternative energy and
clean technologies in partnership with the Government, academia and private industry to be future-ready. To accomplish the above,
IndianOil provides a dynamic and challenging environment to its employees by creating an atmosphere of optimism, team work, creativity
and resourcefulness with an aim to create a Centre of Excellence in the country that is admired as a benchmark petroleum downstream
2$#ENTRE
4OENABLEFUTURERESEARCHPLANSOFTHE2$CENTREWITHBEST
IN
CLASS2$FACILITIESASECOND2$CAMPUSISBEINGSETUPIN&ARIDABAD
at an estimated cost of ` 2,200 crore.
` 1576 crore
2ElNERY-ARGINIMPROVEMENT
` 437.34 crore 107 ` 498 crore from indigenously developed
2$%XPENDITURE 0ATENTSEARNED .OTIONALEARNINGSFROM2$ technologies
Industry-Academia Partnership
4HE 2$ #ENTRE HAS ENTERED INTO AGREEMENTS WITH ))4 $ELHI
3IMON &RASER 5NIVERSITY #ANADA $EAKIN 5NIVERSITY !USTRALIA
for collaborative research wherein students can register at the
respective universities and pursue research projects of mutual
INTERESTLEADINGTOAWARDOF0H$DEGREE#URRENTLY16 students
are pursuing research work under this programme.
About the
Report
YoY increase in patents granted
Chairman’s Desk
Patents Filed, Granted and Active
From the
790
2018-19 160
107
614
2017-18 82
About IndianOil
57
554
2016-17 105
28
454
2015-16 74
19
Description of
384
2014-15 92
Capitals
14
Increase in R&D expenses with a plan to come out with a state-of-the-art second R&D Campus at Faridabad
Board of
R&D Expenditure (` crore) Estimated Savings from R&D Initiatives (` crore)
800 800
Directors’
700 700
606
Report
600 600
498
500 500
Management’s
263
300 300
200 200
100 100
Responsibility Report
0 0
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Business
Research Manpower
800
700 Report on Corporate
600
441
Governance
500
401 405 424
384
400
300
200
100
Statements
0
Financial
Case Studies
Description Description
The technology converts CO2 to drop-in bio-fuels and high value )NDIAN/IL 2$ HAS PATENTED A COMPACT REFORMER TECHNOLOGY
food supplement material WHEREIN THE (
#.' BLENDS CAN BE PRODUCED DIRECTLY FROM
#.'BYPASSINGENERGYINTENSIVEELECTROLYSISPROCESSALONGWITH
Key Driving Factors high-pressure blending cost. This technology is planned for
• !BIO
TECHNOLOGICALINTERVENTIONTHATWORKSONCAPTUREAND DEMONSTRATIONINAPUBLICTRANSPORTBUSDEPOTIN$ELHI
utilisation of CO2, a major greenhouse gas
Key Driving Factors
• ! PROCESS THAT CAN CONVERT #/2 and produce sustainable
FUELSANDHIGH
VALUENUTRIENTSSUCHAS/MEGA&ATTY!CIDS • /FFERSASIGNIlCANTOPPORTUNITYTOREDUCEGREENHOUSEGAS
emissions and harmful exhaust emissions
"ENElTS
• Existing IC engine technology can be adopted with minimal
This disruptive technology shall give IndianOil a distinct lead MODIlCATIONS
over other energy companies in not only reducing carbon
EMISSIONSBUTALSOPRODUCINGVERYHIGHVALUEPRODUCTSLIKE$(! "ENElTS
Omega-3 along with bio-diesel while reducing CO2 emissions
• &UELECONOMYBENElTSCOMPAREDTOOTHEROPTIONS
• 2EDUCTIONIN#/AND(#EMISSIONSASPERLABTESTS
IndeDiesel®-DIESEL Hydrotreating Technology
• %LIMINATESNEEDFORSEPARATEPRODUCTIONOFPURE(YDROGEN
Description its compression and storage
"ENElTS
• Cetane improvement by > 10 units
• Optimised feed preheat scheme offering cost-effective
designs considering both capital and operating costs
• %FlCIENTREACTORINTERNALS
• (IGHACTIVECATALYSTSYSTEM
About the
Report
Biomethanation 2ElNERY/FF
GASESTO%THANOL
Description Description
Chairman’s Desk
)NDIAN/IL 2$ HAS DEVELOPED AN EFlCIENT TWO STAGE 7ORLDS lRST RElNERY OFF
GASES TO ETHANOL PROCESS USING GAS
"IOMETHANATIONTECHNOLOGYFORCONVERTINGORGANICWASTETOBIO
From the
FERMENTATIONTECHNOLOGYFROM0RESSURE3WING!DSORPTION03!
gas having very high methane content. OFF
GASESCONTAINING#/(2, CO2AT0ANIPAT2ElNERY
"IOMETHANATION IS A PROCESS IN WHICH VARIOUS ORGANIC WASTES
Key Driving Factors
such as food waste, municipal solid waste and crop residue
About IndianOil
is converted into bio-gas in the presence of micro-organisms • This technology produces ethanol as an alternative
under anaerobic conditions. Its byproduct, organic manure, is transport fuel supplement blend
used as soil conditioner.
• Ethanol, a clean fuel with low carbon emission will have a
Key Driving Factors positive environmental impact
• (IGHERYIELDOFGASANDMETHANECOMPAREDTOOTHERSIMILAR "ENElTS
technologies
Description of
• 3EQUESTRATION POTENTIAL OF ABOUT MILLION TONNES OF #/2
• "ETTERCROPRESIDUEANDWASTEMANAGEMENT
Capitals
PERANNUMONIMPLEMENTATIONATALL)NDIANRElNERIES
• "ETTERCONTROLONSEASONALVARIATIONSINGASGENERATIONRATE
Board of
• Compact and cost-effective plant engineering and design
Input-Output-Outcome
Inputs Outputs Outcomes
Directors’
Report
• 2$EXPENDITUREOF`437.34 crore • $URING
PATENTS • )NDE$IESEL TECHNOLOGY EARNED
• (IGHLY TALENTED AND EXPERIENCED IN
HOUSE WERElLEDANDPATENTSEARNED 0ETROTECH
3PECIAL
Management’s
3USTAINABILITYv
• (IGHEST METHANE CONTENT IN
• 2$PERSONNELTRAINEDONRECENTTECHNOLOGICAL biomethanation gas (thus lesser • 4HROUGH START
UP lND
advancements PURIlCATION COST LEADING TO programme, established
better heating value and burning innovative technology and
• 41 scientists attended various international
business process re-engineering
Responsibility Report
training programmes, seminars and EFlCIENCY
IDEAS WITH SIGNIlCANT BUSINESS
conferences • CO2-to-lipids plant provides
potential, social relevance
• 0ATENTED)NDE$IESELTECHNOLOGYIMPLEMENTED IndianOil a distinct lead over other
and focussed on environment-
Business
AT'UJARAT2ElNERYFOR"3
6)$($3PROJECT energy companies by developing
protection
one of its kind technology to reduce
• Incubated start-ups on innovative ideas in • "IOMETHANATION ENSURES BETTER
carbon emissions and produce
energy sector waste management, thereby
HIGH
VALUE PRODUCTS LIKE $(! Report on Corporate
• #OMMISSIONED TWO
STAGE "IOMETHANATION Omega-3 along with bio-diesel protecting the health of the
technology for converting organic waste to bio- population
• (
#.' ENSURES FUEL ECONOMY
Governance
3TART
UP&UNDPROGRAMME
44 Indian Oil Corporation Limited 2nd Integrated Annual Report
)NDIAN/ILSCOMMITMENTTOBE@4HE%NERGYOF)NDIAISALSOREmECTEDINITS#32POLICYWHICHISLEDBYTHEPHILOSOPHYOFWORKINGCLOSELY
with the communities residing in the vicinity of the Company’s operations and beyond and enhance their quality of life. IndianOil has
BEENACTIVELYENGAGEDINAGAMUTOFSOCIALWELFAREUPLIFTMENTACTIVITIESACROSSTHENATIONINADDITIONTOREACHINGESSENTIALFUELSVIZ
+EROSENE,0'PETROLDIESELETCTOEVERYNOOKANDCORNEROFTHECOUNTRY)NDIAN/ILS#32PROJECTSAREUNDERTAKENINLINEWITH3CHEDULE
6))OFTHE#OMPANIES!CTAND#320OLICYAND'UIDELINESOF)NDIAN/ILWHICHHAVEBEENAPPROVEDBYTHE)NDIAN/IL"OARD
3AFEDRINKINGWATERANDPROTECTION (EALTHCAREANDSANITATION
of water resources
CSR
Thrust Areas
%MPOWERMENTOFWOMENANDSOCIALLY Education and employment-
economically backward groups enhancing vocational skills
700
600
491 491
500
400
331 331
300
217 214
161
200
157
100
0
2015-16 2016-17 2017-18 2018-19
About the
Report
Case Studies
Related Sustainability Development Goals (SDGs)
Chairman’s Desk
From the
Vidushi- Free coaching for girls
About IndianOil
Objective
To help girls from under-privileged sections of society to gain
ADMISSIONINPRESTIGIOUSENGINEERINGINSTITUTESVIZ))4S.)4S
CETs, IIITs, etc
Description of
Activities
Capitals
• 0ROVIDED SPECIALISED COACHING AND MENTORING AFTER #LASS
8))TOSUCCEEDIN*%%-AINS*%%!DVANCEDOTHER#ENTRAL
AND3TATE%NGINEERING%NTRANCE%XAMINATIONS
"ENElCIARIES
Board of
• Complete cost for specialised coaching, study material,
• /UT OF TOTAL GIRLS CLEARED ))4 *%% -AINS OUT OF
boarding, food & other consumables, blanket, hygiene kit,
WHICHCLEARED*%%!DVANCEDWILLGETANOPPORTUNITY
dress set, health insurance, etc., is borne by IndianOil
TOJOIN))4SBALANCELIKELYTOJOIN.)4S)))4S
Directors’
Related Sustainability Development Goals (SDGs)
Report
Discussion & Analysis
Management’s
Aids & assistive devices to Divyangjan
Objective
Responsibility Report
To provide assistive devices like tricycles, wheel chairs, crutches,
WALKINGSTICKS"RAILLEKITSFORVISUALLYIMPAIREDHEARINGAIDS
Business
ARTIlCIALLIMBSETC
THETARGETLOCATIONS
• 4RAINING IMPARTED TO THE BENElCIARIES AT THE DISTRIBUTION
camps for effective usage of the assistive devices "ENElCIARIES
• !SSISTIVE DEVICES WERE PROVIDED TO MORE THAN
divyangjanACROSS3TATESOF)NDIA
Statements
Financial
46 Indian Oil Corporation Limited 2nd Integrated Annual Report
Objective
To offer opportunities for skilling to the unemployed and under-
privileged youth of Odisha and to provide skilled manpower to
the industry
Activities
3KILL $EVELOPMENT )NSTITUTE "HUBANESHWAR STARTED OPERATION
IN TWO TRADES VIZ )NDUSTRIAL %LECTRICIAN 7ELDER (OWEVER
with increasing demand of skilled manpower, 6 more courses
WEREADDED#OMPUTER$ATA!PPLICATIONONLYFORGIRLS &ITTER
&ABRICATION )NSTRUMENTATION 4ECHNICIAN 0IPE &ITTER #ITY 'AS "ENElCIARIES
$ISTRIBUTION 3OLAR06)NSTALLATIONAND,0'-ECHANIC • !BOUTSTUDENTSPERBATCHAREBEINGSKILLEDINTRADE
courses, which are of 3 to 6 months duration each
• 3INCE INCEPTION UNDER
PRIVILEGED YOUTH WERE SKILLED
ANDCERTIlEDWITHOVERJOBPLACEMENTS
Objective
To provide scholarships on merit-cum-means basis to students pursuing 2-year regular courses in Government ITIs and 3-year
REGULARCOURSESIN'OVERNMENT0OLYTECHNICSTOINCENTIVISETHEMTOPERFORMWELL
"ENElCIARIES
• Covers 36 Government institutes (18 ITIs and 18
0OLYTECHNICS NEAR)NDIAN/IL2ElNERYLOCATIONS
• 50 students selected per batch from each institute every
year
• 3CHOLARSHIPOF`
PERMONTHGIVENTOEACHSTUDENT
for the entire duration of the regular courses
• $URING
STUDENTS FROM )4)S AND
0OLYTECHNICSWERESELECTEDFORTHISSCHEME
60th Annual Report 2018-19 47
About the
Report
Related Sustainability Development Goals (SDGs)
Chairman’s Desk
From the
Assam Oil School of Nursing, Digboi, Assam
About IndianOil
Objective
To provide stable careers and livelihood opportunities to young
under-privileged girls
Activities
Description of
/FFERS
YEAR$IPLOMA#OURSEIN'ENERAL.URSINGAND-IDWIFERY
to young girls with intake capacity of 30 students per year
Capitals
YEAR"3C.URSING COURSESTARTEDFROMTHESAMECAMPUSIN
2014 with intake of 30 students per year
Board of
• 410 students have successfully completed the diploma
COURSETILLDATEWITHJOBPLACEMENTRECORD
Directors’
Report
Discussion & Analysis
Management’s
Expanding horizons of Industry-Academia Partnership
Responsibility Report
7ITHAFOCUSONSTRENGTHENING@)NDUSTRY
!CADEMIAPARTNERSHIP
AND AS A lRST IN THE INDUSTRY )NDIAN/IL COLLABORATED WITH THE
)NSTITUTEOF#HEMICAL4ECHNOLOGY)#4 -UMBAITOSETUP)#4
Business
)/##AMPUSAT"HUBANESWAR!DMISSIONPROCESSFORTHE
YEAR
INTEGRATED-4ECH0ROGRAMMETHROUGH*%%
-AINEXAMINATIONS
has been completed for a batch size of 60 students, which saw Report on Corporate
an overwhelming response from students.
! UNIQUE ONE
OF
ITS
KIND %XECUTIVE - 4ECH 0ROGRAMME FOR
Governance
Input-Output-Outcome
Inputs Outputs Outcomes
IndianOil Vidushi 0ROVIDED FREE SPECIALISED Out of 56 girls, 17 have cleared JEE • -ORE NUMBER OF GIRLS IN ))4S.)4SOTHER
coaching and mentoring to 56 under-privileged !DVANCEDANDWILLGETANOPPORTUNITY Engineering colleges
GIRLSATTWOCENTRES;.OIDA"HUBANESWAR= TOJOIN))4SGIRLSARELIKELYTOJOIN
• Women empowerment
)))4SETCBALANCEGIRLSWILLJOIN
other Govt. Engineering colleges • 3PREADINGEDUCATIONATRURALHINTERLANDS
IndianOil Gyanodaya 0ROVIDED SCHOLARSHIPS -ORE THAN LAKH STUDENTS • "ETTERFACILITIESINSCHOOLS
TO STUDENTS FROM 'OVT 0OLYTECHNICS BENElTTEDDURING
'OVT )4)S IN THE VICINITY OF 2ElNERY 5NITS • 2EDUCTIONINDROPOUTOFSTUDENTS
SUPPORTED STUDENTS OF SCHOOLS AT "ARAUNI
"ONGAIGAON 'UWAHATI (ALDIA AND -ATHURA
constructed toilets, class rooms, provided
FURNITUREEQUIPMENT ;VIZ TABLES CHAIRS
benches, fans, drinking water systems, water
COOLERSETC=TOVARIOUSSCHOOLSACROSS)NDIA
IndianOil Kaushal Vikas 0ROVIDED SKILL -ORETHANUNEMPLOYEDYOUTH • 3KILLEDMANPOWERMADEAVAILABLEFORTHE
DEVELOPMENT TRAINING TO UNEMPLOYEDUNDER
BENElTTEDDURING
industries
PRIVILEGEDYOUTHAT3KILL$EVELOPMENT)NSTITUTE
• 0ROVIDED EMPLOYMENT OPPORTUNITIES TO
"HUBANESWAR AND SKILLING CENTRESINSTITUTES
across various geographies under-privileged youth
IndianOil Acers 0ROVIDED SPORTS SCHOLARSHIPS -ORE THAN SPORTSPERSONS • .URTUREDTALENTOFBUDDINGSPORTSPERSONS
to promising young sportspersons representing BENElTTEDDURING
• "ROUGHTLAURELSTOTHE#OMPANYANDTHE
THEIR RESPECTIVE 3TATES IN TEAM GAMES AND
country
.ATIONALRANKHOLDERSINOTHERS
IndianOil Jal Jeevan 0ROVIDED DRINKING WATER -ORE THAN LAKH BENElCIARIES Improvement in availability of drinking water
FACILITIES THROUGH INSTALLATION OF 2/ PLANTS during 2018-19 across various geographies, especially in
hand pumps, submersible pumps, solar water rural areas
pumps, overhead water tanks, laying of water
pipeline networks, etc.
IndianOil Divyangjan0ROVIDEDASSISTIVE -ORE THAN divyangjan • Improved living standards, better
DEVICES;VIZMOTORISEDNON
MOTORISED BENElTEDDURING
livelihood opportunities leading to
tricycles, smart cane & mobile devices for the
visually impaired, digital hearing aids, multi- empowerment of divyangjan
sensory integrated educational devices for the
MENTALLYRETARDEDAUXILLACRUTCHESETC=
60th Annual Report 2018-19 49
About the
Report
NATURAL CAPITAL
Chairman’s Desk
Invigorating the ecosystem for future generations
From the
‘Caring for the environment and society’ is one of the founding pillars of IndianOil’s vision. The Company believes that sustainability of
the business also depends on the sustainability of environment and society. In its efforts to minimise the negative externalities of its value
chain, the Company is dedicatedly revamping and redesigning its operations, supply chain and products in order to drive its sustainability
agenda.
About IndianOil
The business strategy of the Company recognises sustainability as vital for generation, consumption and preservation of natural capital. In
LINEWITHTHESTRATEGICAPPROACHTOBECOMEAFUTURE
READYORGANISATIONTHE#OMPANYHASIDENTIlEDMATERIALISSUESTHATHAVETHEPOTENTIAL
TOIMPACTTHENATURALCAPITAL4HE#OMPANYHASDElNED+0)SANDMITIGATIONPLANTOADDRESSTHESEMATERIALISSUES)NORDERTODELIVER
BUSINESSRESPONSIBLYTHE#OMPANYISTAKINGSEVERALINITIATIVESTOENHANCEITSENERGYEFlCIENCYREDUCE'('EMISSIONWATERCONSUMPTION
& waste while augmenting capacities in the domains of clean energy, green buildings, etc.
Description of
IndianOil recognises its responsibility to the people and environment. The Company is actively exploring opportunities and new avenues to
Capitals
expedite its sustainability journey which in turn would improve the Company’s economic and business competitiveness, besides reducing
the negative impact on natural capital.
Board of
Sustainable
Alternative Sustainable Fuel Station
Towards Affordable Packaging of Solarisation
Transportation Lube Oils
(SATAT)
Directors’
Report
@3!4!4 SCHEME WAS LAUNCHED BY THE In order to achieve product IndianOil is committed to propagating its
-INISTRYOF0ETROLEUM.ATURAL'ASWITH stewardship and reduce the sustainability agenda across its supply
Management’s
scheme envisages to target production of has undertaken an initiative greening its supply chain.
-4 OF #"' BY THE YEAR FROM to procure additives in tank-
3OFARFUELSTATIONSWHICHISMORE
5000 plants. This initiative holds great trucks instead of steel barrels.
THANOFTHERETAILNETWORKHAVEBEEN
PROMISE FOR EFlCIENT MANAGEMENT OF This initiative has reduced the
converted to operate on solar energy with
Responsibility Report
municipal solid waste and in tackling consumption of steel barrels
ACUMULATIVEINSTALLEDCAPACITYOF-7
polluted urban air due to farm stubble- equivalent to 850 tonnes of steel.
BURNING AND CARBON EMISSIONS 5SE OF
Business
The Company has also reduced
#"'WILLALSOHELPBRINGDOWNDEPENDENCY
consumption of metal scrap by
on crude oil imports and in realising the
0RIME -INISTERS VISION OF ENHANCING
900 tonnes annually by switching Related Sustainability Development
farmers’ income, rural employment and
to 0.9 mm thickness barrels Goals (SDGs) Report on Corporate
from 1 mm thickness barrels for
entrepreneurship.
packing lube oils.
Governance
)NDIAN/ILHASISSUED,ETTERSOF)NTENTTO
ENTREPRENEURS TO SET UP #"' PLANTS
The expected capacity of these plants is
792 tonnes per day. The Company shall
also facilitate technology for setting up of
#"'PLANTS
Statements
Financial
50 Indian Oil Corporation Limited 2nd Integrated Annual Report
Input-Output-Outcome
• --4 OF CRUDE OIL PROCESSED AT • --4#/2E OF '(' EMISSIONS • 2EDUCTION IN RElNERIES SPECIlC '('
)NDIAN/ILRElNERIES due to crude oil processing from EMISSIONS BY TILL
AS
• Capital expenditure of ` 136 crore in RElNERIES against 2012-13 levels
alternative energy • 2ENEWABLEENERGYGENERATIONOF • 2ENEWABLE ENERGY GENERATION IS
• Capacity of renewable energy projects GWh in 2018-19 EQUIVALENTTOOF)NDIAN/ILSELECTRICITY
INCREASEDTO-7 • 0IPELINE TRANSPORT OF CRUDE OIL consumption
• 0IPELINE NETWORK EXPANDED TO petroleum products replaced less • '(' EMISSIONS REDUCTION OF
km
ENERGY
EFlCIENTRAILTRANSPORT tCO2e in 2018-19 on account of
renewable energy projects
• 13,29,000 tCO2e of emission avoided
through environment-friendly pipeline
transportation
• --"45 OF ENERGY • %NERGY CONSERVATION %.#/. • %.#/. PROJECTS UNDERTAKEN IN
CONSUMEDATRElNERIES projects implemented in 2018-19 19 have emission reduction potential of
• ENERGY CONSERVATIONEFlCIENCY ESTIMATEDTOHAVESAVED-4 2,55,000 tCO2e per year
PROJECTS IMPLEMENTED AT RElNERIES WITH 3TANDARD 2ElNERY &UEL PER ANNUM • $URING THE YEAR )NDIAN/IL ACHIEVED
an overall cost of ` 44.81 crore
equivalent to ` CROREYEAR its best performance on the following
PARAMETERS
• 3PECIlC ENERGY CONSUMPTION -".
OFRElNERIESREDUCEDTO
• %NERGY )NTENSITY )NDEX %)) RATING
brought down to 97.9
• $ECLINEINFUELLOSSTO
• Treated 45.17 million kl waste water • 40.15 million kl of waste water • 2EDUCTIONINFRESHWATERINTAKEBY
• 2ESPONSIBLE MANAGEMENT OF ORGANIC recycled by recycling the waste water generated in
waste through installation of 50 bio-gas • -ORE THAN TONNES OF ORGANIC operating locations
PLANTSORGANICWASTECOMPOSTERS waste processed during the year • 2ElNERIES REUSED OF WASTE
WATER
• 137 tonnes of waste paper recycled generated
in 2018-19 • !VOIDED EMISSION OF T#/2e by
treating waste in organic waste converter
BIOGAS PLANT INSTALLED WITHIN PREMISES
RATHERTHANSENDINGTHEWASTETOLANDlLL
About the
Report
BOARD OF DIRECTORS
Chairman’s Desk
1. Shri Sanjiv Singh Chairman
From the
3. Dr. S. S. V. Ramakumar Director (Research & Development)
About IndianOil
5. Shri Ranjan Kumar Mohapatra Director (Human Resources)
Description of
9. Smt. Indrani Kaushal Government Nominee Director w.e.f. 26.07.2018
up to 11.03.2019
Capitals
re-appointed on 28.05.2019
Board of
13. Shri Chitta Ranjan Biswal Independent Director
Directors’
16. Shri D. S. Shekhawat Independent Director
Report
17. Shri A.K.Sharma Director (Finance) up to 17.05.2019
Management’s
19. Shri Sanjay Kapoor Independent Director up to 01.12.2018
Responsibility Report
KEY MANAGERIAL PERSONNEL (KMP)
Business
1. Shri Sandeep Kumar Gupta #HIEF&INANCIAL/FlCER WEF
CORE TEAM
About the
Report
SENIOR MANAGEMENT TEAM
Vinod Kumar VK Misra SK Sharma
Chairman’s Desk
#HIEF6IGILANCE/FlCER Executive Director Executive Director (Technology
5TTAR0RADESH3TATE/FlCE
)) Promotion & Forecasting), R&D
BK Ravi
From the
Advisor (Security) SK Sharma DL Pramodh
Executive Director (City Gas Executive Director
Amita Singh (Ms) Distribution), Pipelines +ARNATAKA3TATE/FlCE
Executive Director (Corporate Affairs &
0RICING #ORPORATE/FlCE SK Jain
About IndianOil
Sanjay Manchanda
Executive Director (Engineering & %XECUTIVE$IRECTOR'UWAHATI2ElNERY
Kaushik Bora Projects), Marketing
Executive Director (Health, Safety & RS Dahiya
%NVIRONMENT 2ElNERIES Rahul Bhardwaj Executive Director (Quality Re-assurance
Executive Director I/C (Telangana & #ELL #ORPORATE/FlCE
VK Shukla !NDHRA0RADESH3TATE/FlCE
Executive Director (Human Resources),
Description of
RD Kherdekar
2ElNERIES Sunil Mathur
Executive Director (Pricing), Marketing
Capitals
Executive Director (LPG), Marketing
BS Giridhar Sudhir Kumar
Executive Director (Health, Safety & Suresh Chopra
%XECUTIVE$IRECTOR'UJARAT2ElNERY
Executive Director I/C (Projects),
Board of
%XECUTIVE$IRECTOR'UJARAT3TATE/FlCE Petroleum Management)
%NVIRONMENT #ORPORATE/FlCE
VC Sati SM Vaidya
DLN Sastri Executive Director (Operations),
Executive Director (International Trade), Executive Director (Northern Region
Pipelines) 2ElNERIES
#ORPORATE/FlCE
HK Singh
Directors’
Murali Srinivasan VK Raizada
Report
Executive Director (Maintenance & Executive Director (Projects), Pipelines
Executive Director I/C (Maharashtra
3TATE/FlCE )NSPECTION 2ElNERIES
Dr. SK Mazumdar
Management’s
%XECUTIVE$IRECTOR/3$ 2ElNERIES Executive Director (Lubes), Marketing
Responsibility Report
UP Singh
Executive Director (Human Resources), Srikrishna Chervu
Subodh Dakwale
Marketing Executive Director (Cryogenics)
Executive Director (Corporate
Business
Communications & Branding), Marketing M Kalikrishna
HK Sachdev
LW Khongwir Executive Director (Regional Services – Executive Director (Corporate
Northern Region) #OMMUNICATIONS #ORPORATE/FlCE
%XECUTIVE$IRECTOR-ATHURA2ElNERY Report on Corporate
About the
Report
OBJECTIVES AND OBLIGATIONS
Chairman’s Desk
Objectives Obligations
To serve the national interests in oil and related sectors in
From the
Towards customers and dealers
accordance and consistent with Government policies.
4O PROVIDE PROMPT COURTEOUS AND EFlCIENT SERVICE AND
To ensure maintenance of continuous and smooth supply
quality products at competitive prices.
OF PETROLEUM PRODUCTS BY WAY OF CRUDE OIL RElNING
transportation and marketing activities and to provide
About IndianOil
appropriate assistance to consumers to conserve and use
Towards suppliers
PETROLEUMPRODUCTSEFlCIENTLY To ensure prompt dealings with integrity, impartiality and
courtesy and help promote ancillary industries.
4O ENHANCE THE COUNTRYS SELF
SUFlCIENCY IN CRUDE OIL
RElNING AND BUILD EXPERTISE IN LAYING OF CRUDE OIL AND
petroleum product pipelines.
Towards employees
Description of
To develop their capabilities and facilitate their advancement
To further enhance marketing infrastructure and reseller
through appropriate training and career planning.
Capitals
network for providing assured service to customers
throughout the country. To have fair dealings with recognised representatives of
employees in pursuance of healthy industrial relations
4OCREATEASTRONGRESEARCHDEVELOPMENTBASEINRElNERY
Board of
To develop techno-economically viable and environment-
4O OPTIMISE UTILISATION OF RElNING CAPACITY AND MAXIMISE
friendly products.
DISTILLATEYIELDANDGROSSRElNINGMARGIN
To maintain the highest standards in respect of safety,
To maximise utilisation of the existing facilities for
environment protection and occupational health at all
IMPROVINGEFlCIENCYANDINCREASINGPRODUCTIVITY
production units.
Directors’
Report
To minimise fuel consumption and hydrocarbon loss in
RElNERIESANDSTOCKLOSSINMARKETINGOPERATIONSTOEFFECT Towards defence services
energy consumption.
Management’s
situations.
To avail of all viable opportunities, both national and
global, arising out of the Government of India’s policy of
liberalisation and reforms. Financial Objectives
To earn adequate return on the capital employed and
Responsibility Report
To achieve higher growth through mergers, acquisitions,
maintain a reasonable annual dividend on equity capital.
INTEGRATION AND DIVERSIlCATION BY HARNESSING NEW
business opportunities in oil exploration & production, To ensure maximum economy in expenditure.
Business
petrochemicals, natural gas and downstream opportunities
4OMANAGEANDOPERATEALLFACILITIESINANEFlCIENTMANNER
overseas.
so as to generate adequate internal resources to meet
To inculcate strong ‘core values’ among the employees and revenue cost and requirements for project investment, Report on Corporate
continuously update skill sets for full exploitation of the without budgetary support.
new business opportunities.
To develop long-term corporate plans to provide for adequate
Governance
To develop operational synergies with subsidiaries and joint growth of the Corporation’s business.
ventures and continuously engage across the hydrocarbon
To reduce the cost of production of petroleum products by
VALUECHAINFORTHEBENElTOFSOCIETYATLARGE
means of systematic cost control measures and thereby
sustain market leadership through cost-competitiveness.
To complete all planned projects within the scheduled time
Statements
AUDITORS, REGISTRAR & TRANSFER AGENT, STOCK EXCHANGES, BANKERS AND DEBENTURE TRUSTEE
Statutory Auditors Secretarial Auditor Debenture Trustee
V. Sankar Aiyar & Co., Mumbai Ragini Chokshi & Co. SBICAP Trustee Company Ltd.
S. K. Mehta & Co., New Delhi Company Secretaries, Mumbai Apeejay House, 6th Floor,
C. K. Prusty & Associates, Bhubaneshwar 3, Dinshaw Wachha Road,
V. Singhi & Associates, Kolkata Registrar & Transfer Agent
Churchgate, Mumbai - 400020
Karvy Fintech Private Ltd. Website: www.sbicaptrustee.com
Branch Auditor Karvy Selenium Tower B, Plot 31-32,
Shiromany Tyagi & Co., New Delhi Gachibowli Financial District, Stock Exchanges
Nanakramguda, BSE Ltd.
Cost Auditors Hyderabad – 500 032 P.J. Towers, Dalal Street, Mumbai - 400001
Chandra Wadhwa & Co., New Delhi Tel. Nos. : (040) 67162222 National Stock Exchange of India Ltd
Bandyopadhyaya Bhaumik & Co., Kolkata Toll Free No. : 1800 3454 001 Exchange Plaza, 5th Floor, Plot C/1,
Mani & Co., Kolkata Fax No. : (040) 23001153 ‘G’ Block, Bandra - Kurla Complex,
R. J. Goel & Co., New Delhi E-mail Address : einward.ris@karvy.com Bandra (E), Mumbai – 400 051
ABK & Associates, Mumbai 7EBSITE WWWKARVYlNTECHCOM
Vivekanandan Unni & Associates, Chennai
Chandra Wadhwa & Co., New Delhi is the Bankers
Central Cost Auditor State Bank of India
HDFC Bank Ltd.
60th Annual Report 2018-19 57
About the
Report
GROUP COMPANIES
Name Business
Indian Subsidiaries
Chairman’s Desk
Chennai Petroleum Corporation Ltd. 2ElNINGOFPETROLEUMPRODUCTS
Overseas Subsidiaries
From the
IndianOil (Mauritius) Ltd., Mauritius Terminalling, Retailing & Aviation Refueling
Lanka IOC PLC, Sri Lanka Retailing, Terminalling & Bunkering
IOC Middle East FZE, UAE Lube Blending & Marketing of Lubricants & Base Oil
IOC Sweden AB, Sweden Investment Company for E&P Projects in Venezuela and Israel
About IndianOil
IOCL (USA) Inc., USA Participation in Shale Gas Asset Projects
IndOil Global B.V., The Netherlands Investment Company for E&P Assets in Canada and UAE
IOCL Singapore Pte Ltd. Investment Company for E&P Assets, trading operation for
procurement of crude oil and import / export of petroleum products
Description of
JOINT VENTURES
Capitals
Name Business Partners
Avi-Oil India Pvt. Ltd. Speciality lubricants Neden BV, The Netherlands
Board of
Fuel Facility at Delhi Airport Bharat Petroleum Corporation Ltd.
Green Gas Ltd. City Gas Distribution GAIL (India) Ltd.
GSPL India Transco Ltd. Setting up of natural gas pipelines Gujarat State Petronet Ltd.
Hindustan Petroleum Corporation Ltd.
Bharat Petroleum Corporation Ltd.
Directors’
GSPL India Gasnet Ltd. -Do- -Do-
Report
Hindustan Urvarak and Rasayan Ltd. Setting up and operation of fertiliser Coal India Ltd.
plants at Sindri, Gorakhpur and NTPC Ltd.
Management’s
Indian Oiltanking Ltd. (Formerly Terminalling services Oiltanking India GmbH, Germany
known as IOT Infrastructure & Energy
Services Ltd.)
IndianOil Adani Gas Pvt. Ltd. City Gas Distribution Adani Gas Ltd.
Responsibility Report
IndianOil Petronas Pvt. Ltd. Terminalling services and parallel Petronas, Malaysia.
marketing of LPG
Business
IndianOil LNG Pvt. Ltd. LNG Terminal at Ennore Maximus Investment Advisory Pvt Ltd
ICICI Bank Ltd.
IndianOil Skytanking Pvt. Ltd. Aviation fuel facility projects and Skytanking GmbH, Germany Report on Corporate
into-plane services
Indian Synthetic Rubber Pvt. Ltd. Manufacturing of Styrene Butadiene Trimurti Holding Corporation, Taiwan
Governance
Rubber at Panipat
Indradhanush Gas Grid Ltd. Setting up of natural gas pipeline Oil and Natural Gas Corporation Ltd.
connecting Guwahati to major cities GAIL (India) Ltd.
in the Northeast, like Itanagar, OIL India Ltd.
Numaligarh, Dimapur, Imphal, Aizawl, .UMALIGARH2ElNERY,TD
Agartala, Shillong, Silchar, Gangtok,
Statements
Financial
etc.
58 Indian Oil Corporation Limited 2nd Integrated Annual Report
PERFORMANCE AT A GLANCE
Financial
AS PER IND-AS AS PER OLD IGAAP
2018-19 2017-18 2018-19 2017-18 2016-17 2015-16 2015-16 2014-15
(US $ Million) (` in Crore)
Revenue From Operations 86,684 78,565 605,924 506,428 445,442 406,828 407,296 467,932
0ROlT"EFORE%XCEPTIONAL)TEMS
Finance Cost, Tax, Depreciation & 5,286 6,688 36,952 43,114 35,989 23,371 22,329 14,291
Amortisation (EBITDA)
0ROlT"EFORE%XCEPTIONAL)TEMS
4,211 5,592 29,438 36,047 29,766 18,552 17,476 9,762
Finance Cost & Tax (EBIT)
0ROlT"EFORE%XCEPTIONAL)TEMS4AX 3,595 5,052 25,127 32,564 26,321 15,462 14,476 6,327
0ROlT"EFORE4AX 3,595 5,052 25,127 32,564 26,321 16,826 15,840 7,995
0ROlT!FTER4AX 2,417 3,312 16,894 21,346 19,106 11,242 10,399 5,273
Other Comprehensive Income (net of
(333) 62 (2,324) 397 4,868 (6,940)
tax)
Total Comprehensive Income 2,084 3,373 14,570 21,743 23,974 4,302
Contribution to Central & State
27,671 29,580 193,422 190,670 179,014 132,064 132,064 98,326
Exchequer
Cumulative Dividend (on issued share
60,018 51,109 39,940 30,714 30,714 27,315
capital)
Value Added 6,874 8,252 48,054 53,193 45,708 31,849 31,330 23,064
Distribution :
To Employees 1,588 1,564 11,102 10,079 9,719 7,114 7,637 7,105
To Providers of Capital
- Finance Cost 616 540 4,311 3,483 3,445 3,090 3,000 3,435
- Dividend 1,383 1,471 9,671 9,479 10,545 2,867 3,399 1,602
60th Annual Report 2018-19 59
About the
Report
Financial
AS PER IND-AS AS PER OLD IGAAP
Chairman’s Desk
2018-19 2017-18 2018-19 2017-18 2016-17 2015-16 2015-16 2014-15
(US $ Million) (` in Crore)
From the
To Government-Income Tax & Dividend
1,462 2,038 10,218 13,139 9,392 6,170 6,121 3,048
Tax
Retained in Business
- Depreciation 1,075 1,096 7,514 7,067 6,223 4,819 4,853 4,529
About IndianOil
- Retained Earnings 750 1,543 5,238 9,946 6,384 7,789 6,320 3,345
Description of
Investments 7,194 7,286 49,755 47,488 47,305 37,181 23,975 23,899
Capitals
Other Non-Current Assets 907 1,385 6,270 9,029 7,987 6,900 8,375 7,835
Other Current Assets 16,707 14,523 115,541 94,657 85,299 63,595 82,340 85,540
Board of
What Corporation Owes
Equity
- Share Capital 1,328 1,454 9,181 9,479 4,739 2,370 2,428 2,428
- Other Equity 14,384 15,448 99,477 100,692 94,990 85,765 71,521 65,542
Total 15,712 16,902 108,658 110,171 99,729 88,135 73,949 67,970
Directors’
Report
Borrowings 12,487 8,903 86,359 58,030 54,820 52,880 52,469 55,248
Management’s
Other Non-Current Liabilities 448 600 3,098 3,912 4,101 20,543 20,038 17,472
Other Current Liabilities 14,714 14,822 101,769 96,610 93,748 52,087 70,683 72,439
Total 45,384 42,873 313,873 279,449 259,209 220,048 226,607 219,849
Responsibility Report
Net Worth (as per Companies Act) 13,364 14,063 92,424 91,664 81,474 75,176 73,498 67,617
Market Capitalisation 22,167 26,313 153,310 171,511 187,948 95,564 95,564 89,506
Business
Enterprise Value 34,649 35,208 239,630 229,487 242,715 148,182 147,771 144,653
IOCL Reported GRM ( in $/bbl) 5.41 8.49 7.77 5.06 5.06 0.27
Governance
IOCL Normalised GRM ( in $/bbl) 4.81 7.37 4.99 7.50 7.50 6.73
Singapore GRM ( in $/bbl)# 4.88 7.22 5.83 7.46 7.46 6.36
Earnings Per Share* 0.26 0.35 17.89 22.52 20.16 11.86 10.71 5.43
Cash Earnings Per Share* 0.37 0.47 25.85 29.98 26.72 16.94 15.70 10.09
Statements
Book Value Per Share* 1.71 1.78 118.35 116.23 105.21 92.98 76.14 69.99
Financial
60 Indian Oil Corporation Limited 2nd Integrated Annual Report
Financial
AS PER IND-AS AS PER OLD IGAAP
2018-19 2017-18 2018-19 2017-18 2016-17 2015-16 2015-16 2014-15
(US $ Million) (` in Crore)
Market Price Per Share (NSE) 162.85 176.60 193.53 98.40 98.40 92.16
Price Earning Ratio 9.10 7.84 9.60 8.30 9.19 16.97
Dividend Payout Ratio 53% 52% 48% 30% 33% 30%
Total Payout Ratio 63% 63% 58% 36% 39% 37%
Retention Ratio 37% 37% 42% 64% 61% 63%
# Source: Reuters
.OTE!BSOLUTElGURESIN53AND` adjusted for Bonus Shares (1:1 issued in March 2018 and 1:1 issued in October 2016)
1 Revenue From Operations Sales (net of discount) + Sale of Services + other operating revenue + net claim/
(surrender) of SSC + subsidy from Central/State Govt. + Grant from Govt.
6ALUE!DDED 0ROlT"EFORE4AX&INANCE#OST$EPRECIATION!MORTISATION%MPLOYEE"ENElT
Expenses
3 Investments Non-Current Investments + Current Investments
4 Other Current Assets Current Assets - Current Investments - Current Tax Assets
5 Borrowings (Total Debt) Short-Term Borrowings + Long-Term Borrowings + Current Maturities of Long-Term Debt
6 Tax Liability (Net) Deferred Tax Liability + Current Tax Liability + Income Tax Liability - (Current Tax Asset +
Income Tax Assets)
7 Other Current Liabilities Current Liabilities - (Short-Term Borrowings + Current Maturities of Long-Term Debt)
8 Enterprise Value Market Capitalisation + Borrowings - Cash and Cash Equivalents
9 Equity Equity Share Capital + Other Equity
60th Annual Report 2018-19 61
About the
Report
10 Capital Employed Equity+Borrowings – CWIP
%ARNINGS0ER3HARE 0ROlT!FTER4AX7EIGHTED!VERAGE.UMBEROF%QUITY3HARES
12 Cash Earnings Per Share 0ROlT!FTER4AX$EPRECIATION!MORTISATION 7EIGHTEDAVERAGE.UMBEROF%QUITY3HARES
Chairman’s Desk
13 Book Value Per Equity Share Equity / Number of Equity Shares
14 Total Debt To Equity Borrowings / Equity
From the
15 Long-Term Debt To Equity (Long-Term Borrowing + Current Maturities of Long-Term Debt) / Equity
2ETURNON!VERAGE.ET7ORTH 0ROlT!FTER4AX!VERAGE.ET7ORTHASPER#OMPANIES!CT
17 Return on Average Capital EBIT / Average Capital Employed
About IndianOil
Employed (%)
)NTEREST3ERVICE#OVERAGE2ATIO 0ROlT"EFORE4AX&INANCE#OST$EPRECIATION &INANCE#OST
19 Debt Service Coverage Ratio (0ROlT!FTER4AX&INANCE#OST$EPRECIATION &INANCE#OST0RINCIPAL2EPAYMENT,ONG
4ERM
/PERATING0ROlT-ARGIN %")4n/THER.ON
/PERATING)NCOME 2EVENUEFROM/PERATIONS.ETOF%XCISE$UTY
)NVENTORY4URNOVER2ATIO 4OTAL)NCOME
0ROlTBEFORE%XCEPTIONAL)TEMAND4AXn3ELLINGAND$ISTRIBUTIONEXPENSES
Average Inventory
Description of
22 Current Ratio Current Assets / (Current Liabilities – Short-Term Borrowings – Current Maturities of Long-Term Debts)
Capitals
Operations
Board of
Product Sales
Domestic
- Petroleum Products 79.964 77.133 74.110 72.603 68.467
- Gas 1.950 1.904 1.920 1.929 1.805
- Petrochemicals 2.553 2.275 2.453 2.413 2.390
Directors’
Report
- Explosives 0.183 0.177 0.158 0.144 0.100
Total Domestic 84.650 81.489 78.641 77.089 72.762
Management’s
Total 89.894 88.763 83.490 80.664 76.511
2ElNERIES4HROUGHPUT 71.816 69.001 65.191 56.694 53.586
Pipelines Throughput 88.527 85.675 82.490 79.824 75.684
Responsibility Report
Manpower Numbers
Business
2018-19 2017-18 2016-17 2015-16 2014-15
33,498 33,157 33,135 32,803 32,962
Figures for the previous year have been regrouped, wherever necessary.
Report on Corporate
Governance
Statements
Financial
62 Indian Oil Corporation Limited 2nd Integrated Annual Report
DIRECTORS’ REPORT
Dear Members,
It gives me immense pleasure to present the 60th Annual Report and the second Integrated Annual Report of the Corporation for
THE lNANCIAL YEAR ENDED st March 2019, along with the Audited Standalone and Consolidated Financial Statements and Auditors’
Report thereon on behalf of the Board. During the year, the Corporation continued to achieve excellent performance on all operational
parameters in all business verticals, while meeting the energy needs and aspirations of the country.
PERFORMANCE REVIEW
FINANCIAL
Particulars 2018-19 2017-18
SHARE VALUE
2018-19 2017-18
US$ ` US$ `
Cash Earnings Per Share 0.37 25.85 0.47 29.98
Earnings Per Share 0.26 17.89 0.35 22.52
Book Value Per Share 1.71 118.35 1.78 116.23
About the
Report
PHYSICAL
Million Metric Tonnes
Chairman’s Desk
Particulars 2018-19 2017-18
From the
Pipelines Throughput 88.53 85.68
Product Sales (inclusive of Gas, Petrochemicals & Exports) 89.89 88.76
About IndianOil
The details of macro-economic, geo-political, financial, industry-specific information affecting the business of the Corporation and the
4HEDETAILSOFMACRO
ECONOMICGEO
POLITICALlNANCIALINDUSTRY
SPECIlCINFORMATIONAFFECTINGTHEBUSINESSOFTHE#ORPORATIONANDTHE
markets in which it operates are provided in the Management Discussion & Analysis, which forms part of the Annual Report
CHANGES IN SHARE CAPITAL / BUYBACK fund comprising - 11 stocks managed by Reliance Nippon
Life Asset Management Company) whereby the PoI holding
OF SHARES
Description of
reduced to 525,01,71,827 equity shares constituting
54.06% of the paid-up equity share capital of IndianOil.
Capitals
The Board of your Corporation at its meeting held on 13th December,
2018, had approved a Buyback of not exceeding 29,76,51,006 3) In February, 2019, the PoI sold 17,78,54,068 shares
fully paid-up Equity Shares of face value of ` 10 each (“Equity under IndianOil’s Buyback of Shares, and consequently,
Board of
price of ` 149/- per equity share, payable in cash for an aggregate
consideration not exceeding ` 4,435 crore. The offer size was 5% 4) In February, 2019, the PoI disinvested 3,72,03,876 equity
of the aggregate of the fully paid-up equity share capital and free shares in favour of Bharat 22 ETF whereby the PoI holding
reserves and 3.06% of the paid-up equity shares in the total paid- further reduced to 503,51,13,883 equity shares constituting
UP SHARE CAPITAL OF THE #ORPORATION AS PER THE AUDITED lNANCIAL 53.48% of the paid-up equity share capital of IndianOil.
STATEMENTSFORTHElNANCIALYEARENDEDst March, 2018. 5) In March, 2019, the PoI further disinvested 12,29,64,424
Directors’
Report
The Buyback Offer opened on 22 January, 2019 and closed
nd equity shares in favour of CPSE ETF, whereby the PoI holding
on 4th February, 2019. The settlement of Buyback amount was reduced to 491,21,49,459 equity shares constituting
52.18% of the paid-up equity share capital of IndianOil.
Management’s
on 14th February, 2019, thereby resulting in reduction of paid-up DIVIDEND
share capital from ` 9,711.81 crore to ` 9,414.16 crore.
The Board of Directors of your Corporation has recommended
A lNAL DIVIDEND OF IE ` 1/- per equity share of
DISINVESTMENT BY THE PRESIDENT OF ` 10/- each, on the paid-up share capital in addition to the interim
Responsibility Report
INDIA (PROMOTER) dividends totalling to ` 8.25 per share paid during 2018-19.
This is the 52nd consecutive year for which your Corporation has
The promoter of IndianOil, i.e., President of India (PoI), was
recommended payment of dividend. So far, your Corporation has
Business
holding 553,34,36,444 equity shares constituting 56.98% of the
paid a cumulative dividend of ` CROREEXCLUDINGTHElNAL
total equity share capital as on 1st April, 2018. As part of the
dividend of ` 941.42 crore recommended for the current year,
Government’s disinvestment programme, the PoI, acting through
which is subject to approval by members at the forthcoming AGM Report on Corporate
the MoP&NG, sold shares of the Corporation during the year, as
per details given below:- on 28th !UGUST 4HE lNAL DIVIDEND SHALL BE PAID TO THE
members whose names appear in the Register of Members as well
Governance
Nabha
Bhatinda Ambala
Sangrur Kurukshetra
Roorkee
Panipat Najibabad
Meerut
Dadri
Delhi
Digboi
Rewari
Papum Pare
Chaksu Mathura
Gorakhpur Amlekhgunj
Ramsar Bharatpur Siliguri
Jaipur Tundla Lucknow Raxaul Bongaigoan
Be ajo
Jodhpur Motihari
ar
Gawria Betkuchi
Siwan Muzaffarpur Imphal
Kot Jhansi
Varanasi
Barauni
Mughalsarai Silchar
Patna Banka
Aburoad Allahabad
Chittaurgarh
Radhanpur Jasidih
Sidhpur
west Tripura
Bhopal Bolpur
Asansol Serchhip
Viramgam Ratlam Durgapur
Mundra
Kandla Navagam Ujjain Ranchi Rajbandh
Surendranagr Kolkata AFS
Salaya
Jamnagar Rajkot Kalyani Mourigram
Indore Korba Budge Budge
Koyali
Dahej Amod Somnathpur Haldia
Jharsuguda
Balasore
Hazira Raipur Sambalpur
Saraipalli
Dhamra
Manmad
Paradip
Jatni
Ahmednagar Berhampur
Solapur Vizag
Achutapuram
Hyderabad
Rajahmundry
Vijayawada
Pipelines
Chitoor Chennai
Bengaluru
Asanur
Sankari
Trichy CBR
Madurai
Ramanathapuram
Kochi
Tuticorin
60th Annual Report 2018-19 65
About the
Report
CONTRIBUTION TO EXCHEQUER INTERNATIONAL TRADE
Your Corporation has consistently been the largest contributor )NORDERTOMEETTHECRUDEOILREQUIREMENTOFITSRElNERIESYOUR
to the Government exchequer in the form of duties, taxes and Corporation imported 61.69 million metric tonnes of crude oil
Chairman’s Desk
dividend. During the year, `1,93,422 crore was paid to the during the year, as against 58.01 million metric tonnes in the
exchequer as against `1,90,670 crore paid in the previous year. PREVIOUSYEAR4HESELECTIONOFCRUDEOILISDONEFROMADIVERSIlED
From the
An amount of `1,01,395 crore was paid to the Central Exchequer mix of supply sources. The import of petroleum products during
and `92,027 crore to the State Exchequer as against `1,03,362 the year was 7.00 million metric tonnes as against 6.53 million
crore and `87,308 crore paid in the previous year respectively. metric tonnes in the previous year. The Corporation also exported
petroleum and petrochemical products during the year. Your
About IndianOil
Corporation has made alternate arrangements for sourcing of crude
CONSOLIDATED FINANCIAL STATEMENTS oil, including term contracts for US origin crudes, to maintain
In accordance with the provisions of the Companies Act, UNINTERRUPTED OPERATIONS AT ITS RElNERIES AND TO OVERCOME THE
2013 and the Accounting Standards issued by the Institute of crude oil supply concerns due to imposition of sanctions on trade
Chartered Accountants of India, your Corporation has prepared with Iran.
the Consolidated Financial Statement for the group, including its
subsidiaries, joint venture entities and associates. The highlights
OPERATIONAL PERFORMANCE
Description of
of the Consolidated Financial Results are as follows:
Capitals
Particulars 2018-19 2017-18 Refineries
US$ ` US$ ` $URINGTHEYEARTHENINERElNERIESOFYOUR#ORPORATIONPERFORMED
Board of
103.8 per cent was achieved during the year as against 99.7 per
(Inclusive of Excise 88,304 6,17,243 79,979 5,15,542 CENTDURING
4HEDISTILLATEYIELDOFTHERElNERIESWAS
Duty & Sale of PER CENT SAME AS THAT OF LAST YEAR 4HE RElNERIES ALSO ACHIEVED
Services) EXCELLENT ENERGY PARAMETERS OF 3PECIlC %NERGY #ONSUMPTION
0ROlT"EFORE4AX 3,709 25,927 5,344 34,450 Energy Intensity Index and Fuel & Loss at 71.3, 97.9 and 8.57
0ROlT!FTER4AX 2,471 17,274 3,510 22,626 per cent as against 72.6, 98.5 and 8.75 per cent respectively
Directors’
registered for 2017-18.
Report
Less: Share of
(15) (103) 68 437
Minority )NORDERTOACHIEVEMOREmEXIBILITYINRElNINGOPERATIONSNINENEW
Management’s
IMPLEMENTPROJECTSTOROLLOUT"3
6)FUELSWEFINTHE
Note: Exchange Rate used:- entire country as well as to meet the IMO (International Maritime
For 2018-19: Average Rate 1 US$ = `69.90 Organisation) 2020 guidelines to reduce the sulphur content in
For 2017-18: Average Rate 1 US$ = `64.46 bunker fuel.
Responsibility Report
Business
Report on Corporate
Governance
Statements
Financial
)NDIAN/ILASPIRESTODOUBLEITSRElNINGCAPACITYBYTHEYEARINLINEWITHTHEROBUSTGROWTHIN0/,DEMANDYEAR
ON
YEAR
66 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
Research & Development In its bid to provide clean air technologies, the R&D Centre
developed and patented the compact reforming process for
The R&D Centre of your Corporation plays a key role in supporting
producing Hydrogen-CNG (H-CNG) blends for use in internal-
the business interests of the Corporation by developing
combustion engines. Last year, the Hon’ble Supreme Court of
Chairman’s Desk
economical, environment-friendly and socially responsible
India took cognizance of this technology and directed IndianOil to
technology solutions. Apart from its core areas of fuels, lubricants
operate a select number of buses on Hydrogen CNG mixtures in a
From the
RElNINGTHE#ENTREISALSOFOCUSSEDONCUTTING
EDGERESEARCHIN
Delhi bus depot. The Centre is in the process of setting up a four
the areas of Nanotechnology, Petrochemicals and Polymers, Bio-
TONNES
PER
DAY(
#.'PRODUCTIONPLANTATANIDENTIlEDBUSDEPOT
TECHNOLOGY(YDROGEN%NERGY#OAL'ASSIlCATION,IQUEFACTIONAND
and the trials would be conducted for a period of 6 months on 50
Gas-to-Liquid.
BS-IV compliant CNG buses.
About IndianOil
During the year, 103 lubricant formulations were developed and
The performance guarantee test-run of DHDS Unit at Gujarat
87% of them were commercialised. 110 approvals were received
2ElNERYEMPLOYINGIN
HOUSEDEVELOPEDDIESELTREATINGTECHNOLOGY
from Original Equipment Manufacturers (OEMs) during the year.
in collaboration with Engineers India Limited was successfully
A pilot plant was set up during the year to demonstrate a novel carried out. The capacity of the DHDS Unit has been augmented
technology to convert greenhouse gas (CO2) to bio-fuel and for producing diesel having sulphur below 10 ppmw.
high-value food supplement material (Omega-3 fatty acids)
Description of
4HE2$#ENTRElLEDFORPATENTSANDWASGRANTEDPATENTS
in collaboration with LanzaTech, USA. The R&D Centre also
(30 Indian and 77 overseas) during the year. IndianOil became
Capitals
developed its own complete bio-methanation solution, including
THE lRST OIL GAS 035 TO CROSS THE MILESTONE OF PATENTS
a best-in-class patented inoculum, process design and technical
lLINGIN!PRILWITHACTIVEPATENTSINITSPORTFOLIO
SERVICE SUPPORT MODULE ! lVE TONNES
PER
DAY BIO
METHANATION
Board of
PROJECTS
To maintain its leadership position, your Corporation recognises the importance
of developing countrywide infrastructure and has been consistently investing
Directors’
in several major and minor projects. Across the Divisions, efforts are made to
Report
ENSURETHATTHEPROJECTSAREIMPLEMENTEDSEAMLESSLY4HEPROJECTSARElNANCED
through an optimum mix of internal accruals and borrowings from domestic as
Management’s
over `3,600 crore was spent on capital expenses through Special Purpose
Vehicle(SPV)/investment in Group companies. Most of the capex requirement
was met through internal accruals.
Responsibility Report
Business
Report on Corporate
Governance
Statements
Financial
68 Indian Oil Corporation Limited 2nd Integrated Annual Report
The details of the completed and ongoing projects are as under :- » Atmospheric & Vacuum Unit and associated facilities of
"ARAUNI2ElNERYEXPANSIONPROJECT
Completed Projects » %THYLENE'LYCOLPROJECTAT0ARADIP2ElNERY
» Paradip-Haldia-Durgapur LPG pipeline
» Naphtha Cracker unit expansion and Mono Ethylene Glycol &
» Jaipur-Panipat naphtha pipeline "UTADIENEEXTRACTIONUNITREVAMPAT0ANIPAT2ElNERY
» ATF pipeline at Kolkata » Paradip-Hyderabad product pipeline
» LPG bottling plants at Banka, Bihar and Bhatinda, Punjab.
» Augmentation of Paradip-Haldia-Durgapur LPG pipeline and
» Raze, rebuild and revamp of bulk storage depot at Doimukh, its extension up to Patna and Muzaffarpur
Arunachal Pradesh and a grassroots depot at Una, Himachal
» Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-
Pradesh
Madurai-Tuticorin natural gas pipeline
» 5-MMTPA LNG import terminal at Ennore (through a joint
» Haldia-Barauni crude oil pipeline and conversion of existing
venture company)
Haldia-Barauni crude oil pipeline to product and gas pipelines.
Ongoing Projects costing more than D500 crore each » Koyali-Ahmednagar-Solapur product pipeline
» $ISTILLATEYIELDIMPROVEMENTPROJECTAT(ALDIA2ElNERY
» Paradip-Somnathpur-Haldia product pipeline
» 0OLYPROPYLENEUNITAT0ARADIP2ElNERY
» Setting up of fertiliser plants at Barauni, Gorakhpur and
» &UELQUALITYUPGRADATIONPROJECT"3
)66) AT"ARAUNI2ElNERY Sindri through a Joint Venture Company
» "3
6)PROJECTSATALLRElNERIES
» INDMAX Unit alongwith associated facilities at Bongaigaon
2ElNERY
60th Annual Report 2018-19 69
About the
Report
BUSINESS
DEVELOPMENT
Chairman’s Desk
Your Corporation has a long legacy
From the
of developing and nurturing
new business lines, which have
complemented and enriched its core
BUSINESS OF RElNING AND MARKETING
About IndianOil
Today, given the wide-ranging
changes that are happening in the
energy sector, a conscious effort on
DIVERSIlCATION AND UPSTREAM AND
downstream integration is no longer
a choice but a necessity for oil &
gas companies. The Corporation
Description of
has made considerable progress
Capitals
in Petrochemicals, Natural Gas,
Exploration & Production, Alternative
Energy and International Business,
Board of
)NDIAN/ILISAMAJORSUPPLIERTOTHEKEYPLAYERSINTHEDETERGENTINDUSTRYBOTHNATIONALANDINTERNATIONAL
Directors’
During the year 2018-19, the Corporation recorded the highest
year. The Corporation is expanding its LNG sourcing infrastructure
Report
Petrochemicals sales of 2.64 MMT (domestic and exports) as
for catering to the growing demand in the country and has
against a sale of 2.37 MMT in 2017-18, recording a growth of
commissioned a 5-MMTPA LNG Import Terminal at Ennore near
Management’s
Butadiene. The Corporation’s 02/0%, brand is a leading brand in
the Indian petrochemicals market. The Corporation is operating / implementing City Gas Distribution
(CGD) Networks in 11 Geographical Areas (GAs) through its two
During the year, the Corporation received approvals for its various
Joint Venture Companies, Green Gas Ltd. (GGL) in Lucknow & Agra
polymer grades from about 20 major Indian and international
Responsibility Report
GAs and IndianOil-Adani Gas Pvt. Ltd. (IOAGPL) in Allahabad,
OEMs. With focus on developing import substitution grades,
Chandigarh, Panipat, Daman, Ernakulam, Udham Singh Nagar,
three new polymer grades were rolled out during the year and 50
Dharwad, South Goa & Bulandshahar GAs. The Corporation also
developmental projects were taken up with customers and OEMs.
Business
participated in the 9th & 10th rounds of CGD Bidding invited by the
Petroleum & Natural Gas Regulatory Board (PNGRB) and received
Natural Gas authorisation for developing CGD Networks in 17 GAs on its own
4HE #ORPORATION IS MAKING SIGNIlCANT INVESTMENTS ACROSS THE and in 12 GAs through its JV Companies, GGL & IOAGPL. Report on Corporate
Natural Gas value chain to build infrastructure and to enhance
availability of the green fuel in the country. The Corporation now Pipeline infrastructure is critical to the development of natural
Governance
HASCUSTOMERSUSING2E
GASIlED,IQUIlED.ATURAL'AS2
,.' gas market in the country and, therefore, the Corporation is laying
During the year, the R-LNG sale of the Corporation was 1.86 MMT. several cross-country gas pipelines independently and through JV
In addition, 2.10 MMT of R-LNG was internally consumed in three companies.
OFTHE#ORPORATIONSRElNERIESVIZ0ANIPAT-ATHURAAND'UJARAT
Exploration & Production
The Corporation has been a pioneer in India through its ‘LNG at
Your Corporation is actively engaged in upstream Exploration &
Doorstep’ service. During the year, the Corporation sold 36.12
Statements
of the Corporation consists of 10 domestic blocks including 4 Under the Government of India’s ‘SATAT’ (Sustainable Alternative
DISCOVEREDSMALLlELDS$3& COALBEDMETHANEBLOCKSAND Towards Affordable Transportation) initiative, 5,000 Compressed
12 overseas blocks, with Participating Interest (PI) ranging from Bio-Gas (CBG) plants are to be set up by the year 2023, with
3 per cent to 100 per cent. The overseas E&P portfolio of the production capacity of 15 MMTPA of CBG, which is 34 per cent of
Corporation is spread over 10 countries, viz., Canada, Gabon, India’s natural gas consumption during 2017-18. The Corporation
Israel, Libya, Nigeria, Oman, Russia, UAE, USA & Venezuela. has issued Letters of Intent to entrepreneurs for setting up 75
CBG plants. The technology for these plants shall be facilitated
During the year, the Corporation’s share of production from
by IndianOil and their expected capacity is 792 tonnes per day.
upstream assets increased by 65 per cent compared to the
previous year, registering an increase in volume from 2.66 MMT The Corporation is setting up a second generation ethanol plant
to 4.39 MMT. The Corporation’s 2P reserves increased by 45 per at Panipat based on ligno-cellulosic conversion of agricultural
cent during 2018-19 over 2017-18 (from 743 MMboe to 1,079 residue. Similar plants are also planned at Gorakhpur (Uttar
MMboe). Pradesh) and Dahej (Gujarat).
During the year, the Corporation, along with Bharat Petro Resources
Ltd. was jointly awarded Block Onshore 1 in U.A.E., offered during
Sustainable Development
the Abu Dhabi Licencing Round 2018. The Corporation alongwith In view of the recent developments on climate change and
its consortium partners was also awarded the licence for Block sustainable development goals, there is an increased thrust on
32 in Israel by the Government of Israel. Another consortium of sustainable development. Your Corporation has taken cognizance
IndianOil (with 90 per cent PI – as lead operator) and Hindustan of the fact and has been pursuing carbon management through
Oil Exploration Ltd. (with 10 per cent PI) emerged the winner in the ENERGYCONSERVATIONENERGYEFlCIENCYRENEWABLEENERGYCARBON
Umatara Cluster in Assam under the DSF Bid Round II. sequestration; water management through reducing consumption,
recycling & rain-water harvesting; and waste management through
The Corporation acquired 17 per cent PI in Mukhaizna Oil reduce, reuse & recycle initiatives.
Field, Oman, through acquisition of 100% share capital of Shell
Exploration & Production Oman Ltd. from Shell Overseas Holding The Corporation is replacing conventional lighting with LED lights
Ltd. The transaction marked the entry of the Corporation into the across all its installations. Cumulatively, 4.5 lakh conventional
highly prospective Middle East region and is also consistent with LIGHTlTTINGSHAVEBEENREPLACEDWITH,%$$URINGTHEYEAR
the strategic objective of adding high quality producing assets to lakh saplings were planted at various locations of the Corporation.
its upstream portfolio. Waste paper recycling is another major initiative of the Corporation
and during the year 137 tonnes of waste paper was recycled
The Corporation is targeting to raise equity oil & gas production through designated recyclers. The Corporation has installed 608
from its international and domestic acquisitions to 7 MMTPA rainwater harvesting systems to harvest 3 billion litres of rainwater
by the year 2023-24 and further to 11 MMTPA by 2029-30 by annually.
suitable addition of new assets from time to time.
Overseas Business
Your Corporation has been constantly exploring various overseas
opportunities in oil & gas sector with special focus on neighbouring
countries. MoUs were signed during the year with partners in
neighbouring countries of Bangladesh and Myanmar to explore
the possibility of joint cooperation in upstream and downstream
hydrocarbons sector. The Corporation is evaluating multiple
opportunities in Bangladesh, Myanmar, Nepal, Saudi Arabia,
Azerbaijan and Africa.
Alternative Energy
Your Corporation has an installed capacity of 216 MW of
renewable energy, including 167.6 MW of wind and 48.6 MW of
solar (comprising 20.5 MW grid-connected solar PV and 28.1 MW
off-grid solar). During the year, 14.2 MW of solar PV capacity was
added and installation of another 13 MW is in progress.
The Corporation has commissioned three waste-to-energy plants
of 5 tonnes per day capacity each under 3WACHH"HARAT!BHIYAN.
The total power generated during the year 2018-19 from these )NDIAN/ILS
--40!TERMINALAT%NNOREFOR,.'IMPORTSANDSOURCING
waste-to-energy plants was about 40,250 units (kWh). MORE,.'DIRECTLYTOMEETTHEINCREASINGDOMESTICREQUIREMENTS
60th Annual Report 2018-19 71
About the
Report
INFORMATION SYSTEMS & OPTIMISATION ST employees and efforts are made to promptly dispose of the
representations/grievances received.
received.In Inaccordance
accordance with
with the
Your Corporation migrated to SAP-HANA technology in January, Presidential Directive, the details of representation of SC/ST/OBC
BECOMING THE lRST 035 AND THE LARGEST INSTALLATION IN in the prescribed format are attached at Annexure-II to the Report.
Chairman’s Desk
)NDIATODOSO)NDIAN/ILISTHElRSTCORPORATEIN)NDIATOINTEGRATE
SAP and TReDS platform, which is an e-discounting platform to The provisions of 4 per cent reservation for Persons with Disabilities
From the
SUPPORTlNANCINGOF-3-%RECEIVABLES in line with guidelines/instructions issued by the Government of
India are implemented by the Corporation. Necessary concessions/
$URINGTHEYEARTHElRSTLEGOFSERVICEMANAGEMENTOFCUSTOMER
relaxations in accordance with the rules in this regard are extended
facing ePIC portal was launched. All service requests and grievance to physically challenged persons in recruitment. The number of
resolution activities across various lines of business were brought employees with disabilities as on 31st March 2019 was 695,
About IndianOil
ONTOTHEPLATFORMRESULTINGINSIGNIlCANTIMPROVEMENTINSINGLE constituting 2.07 per cent of the total employee strength.
day resolution of service requests.
Your Corporation maintained cordial industrial relations during the
The Optimisation group in the Corporation carries out analysis of year, and continued to provide comprehensive welfare facilities
demand forecast covering purchase of crude oil cargoes through TOITSEMPLOYEESTOTAKECAREOFTHEIRHEALTHEFlCIENCYECONOMIC
term contracts or spot purchases, logistics arrangements, export betterment, etc., and to enable them to give their best at the
of products, etc. not only to maintain supply of products across
Description of
workplace. Your Corporation supports participative culture in the
THECOUNTRYBUTALSOTOOPTIMISECORPORATEPROlTABILITY)NORDERTO management of the enterprise and has adopted a consultative
Capitals
reduce dependence on procurement of crude oil from conventional approach with the collectives, establishing a harmonious
sources, 12 million barrels of different varieties of crude oil was relationship for industrial peace, thereby leading to higher
procured from the USA during the year. productivity.
Board of
Your Corporation is committed to conducting business with potential. With the focus on aligning various HR policies with
a strong environment conscience, ensuring sustainable the Strategic Corporate Vision, many new initiatives have been
development, safe workplaces and enrichment of the quality of undertaken in the human resources function, aimed at both -
LIFEOFITSEMPLOYEESCUSTOMERSANDTHECOMMUNITY!LLRElNERIES employee engagement and making the employees ‘future-ready’.
OF YOUR #ORPORATION ARE CERTIlED TO )3/ STANDARDS FOR Some of these initiatives are as under:
sustainable development as well as for the Occupational Health
Directors’
& Safety Management System (OHSMS/OHSAS-18001), besides e-Learning
Report
having fully equipped occupational health centres. A majority of A structured, technology-aided e-Learning platform catering to
the pipeline installations and some of the marketing installations the functional learning and development needs of the employees
Management’s
at the unit, division and corporate levels. The HSE activities of the
Corporation are reviewed periodically in Board meetings. During Sponsoring officers for higher studies
THE YEAR SAFETY AUDITS WERE CARRIED OUT AT VARIOUS OFlCES AND
A policy has been framed to sponsor the talent to executive
locations and various training programmes were conducted across
management programmes at select management schools,
Responsibility Report
the Corporation covering safety-related topics.
namely IIMs – Ahmedabad, Bangalore, Calcutta, Lucknow and
MDI-Gurugram after they secure admission through the rigorous
HUMAN RESOURCES selection process of these institutes.
Business
Your Corporation has a strong and dedicated workforce of 33,498,
consisting of 17,704 executives and 15,794 non-executives as on
Expanding horizons of Industry-Academia
31st March 2019, including 2,869 women employees comprising Partnership Report on Corporate
8.56 per cent of the total workforce. With focus on strengthening ‘Industry-Academia’ partnership,
IndianOil collaborated with the Institute of Chemical Technology
Governance
Grievance/Complaint Registers are also maintained at Division/ working professionals has been developed jointly by ICT and IIT
Region/Unit level for registering grievances from OBC/SC/ Kharagpur commencing in June, 2019.
72 Indian Oil Corporation Limited 2nd Integrated Annual Report
The study helped to identify the ‘strength areas’ and ‘action areas
for improvement’ in various HR processes and accordingly develop
action plans – both short-term and long-term.
Hindi Implementation
Benchmarking of HR Practices
Your Corporation is committed to implementation of Hindi at its
An independent assessment was carried out by a renowned
VARIOUS OFlCES LOCATIONSUNITS IN DAY
TO
DAY FUNCTIONING 4HE
international consultant, as per the People Capability Maturity
PROVISIONS OF /FlCIAL ,ANGUAGE !CT AND 2ULES NOTIlED
Model (PCMM) on three inter-related components in HR – People,
thereunder are complied with. Communications received in Hindi
Process and Technology.
and any application, appeal or representation written or signed
The assessment has been done with a view to benchmark BYANEMPLOYEEIN(INDIISREPLIEDTOIN(INDI/FlCIAL,ANGUAGE
THE #ORPORATIONS (2 PROCESSES IN AREAS LIKE 3TAFlNG 7ORK Implementation Committees (OLIC) have been formed in all
Environment, Performance Management, Training & Development, OFlCESUNITS TO REVIEW THE PROGRESS OF IMPLEMENTATION OF OFlCIAL
Competency Analysis & Development, Workforce Planning, language policies.
Participatory Culture, Mentoring, etc.
)NDIAN/ILFOCUSSESONALL
ROUNDGROWTHANDDEVELOPMENTOFITSEMPLOYEES
60th Annual Report 2018-19 73
About the
Report
RIGHT TO INFORMATION ACT There were three complaints of sexual harassment pending as on
1st April 2018. During the year 2018-19, six complaints were
Your Corporation has put in place an elaborate mechanism across received and four complaints were disposed of. As on 31st March
the organisation to deal with matters related to Right to Information lVECOMPLAINTSAREPENDING
Chairman’s Desk
Act, 2005 since its inception. The Corporation has designated one
.ODAL/FlCERBASEDATTHE#ORPORATE/FlCEAND&IRST!PPELLATE Regular workshops are held especially for women employees,
From the
!UTHORITIES&!!S #ENTRAL0UBLIC)NFORMATION/FlCERS#0)/S with the objective of bringing awareness about their rights and
AND!SSISTANT0UBLIC)NFORMATION/FlCERS!0)/S 4HEDETAILS facilities at the workplace and emphasising the provisions of the
OF ALL THE DESIGNATED OFlCIALS THIRD
PARTY AUDIT REPORTS ETC ARE Act. During the year, 62 workshops/awareness programmes were
hosted and regularly updated on the website of the Corporation. conducted. Gender sensitisation programmes for male employees
are also being conducted regularly. Newly recruited employees in
About IndianOil
The Corporation has aligned with the online RTI portal launched by the Corporation are made aware of the provisions of the Act and the
DoPT and all the applications/appeals received through the portal measures adopted by the Corporation to prevent such incidents.
are disposed of through the portal only. Quarterly Reports/Annual
Reports have been submitted through the online portal of Central
Information Commission (www.cic.gov.in) within the prescribed CORPORATE SOCIAL RESPONSIBILITY
TIMELIMIT!TOTALOFREQUESTSANDlRSTAPPEALSWERE
time limit. A total of 7,539 requests and 918 first appeals were (CSR)
Description of
received during the year and all have been disposed of within the
Your Corporation has been actively engaged in various CSR
STIPULATEDTIMESECONDAPPEALSWERElLEDBEFORETHE#ENTRAL
Capitals
stipulated time. 84 second appeals were filed before the Central
activities over the years, which cover the entire gamut of social
Information Commission, New Delhi, and all of them have been
welfare/upliftment activities across the nation. The thrust areas
disposed of after due follow-up without any adverse remarks from
under CSR inter-alia include health care and sanitation, education
the Hon’ble Commission.
Board of
HARASSMENT OF WOMEN AT WORKPLACE crore on various CSR activities. A report on the Corporation’s CSR
activities as per the provisions of the Companies Act alongwith
(PREVENTION, PROHIBITION & CSR highlights during the year is annexed at Annexure-III to the
report. The composition of the CSR Committee is provided in the
REDRESSAL) ACT, 2013 Corporate Governance Report. The CSR policy of the Corporation
The provisions of the Sexual Harassment of Women at Workplace
Directors’
can be accessed at the website of the Corporation on the link
Report
(Prevention, Prohibition and Redressal) Act, 2013 have been https://iocl.com/aboutus/Ioc_S&CSR_policy.pdf
implemented across the Corporation with the clear objective of
providing protection to women against sexual harassment at the
Management’s
#OMMITTEES HAVE BEEN SET UP AT 5NIT2EGION(EAD /FlCE LEVEL The objective of the vigilance function is to ensure maintenance
headed by senior level women executives to deal with sexual of the highest level of integrity throughout the Corporation. The
harassment complaints, if any, and to conduct enquiries. Vigilance department acts as a link between the organisation and
Chief Vigilance Commissioner. The Vigilance department takes
preventive, punitive and participative steps, with emphasis on the
Responsibility Report
preventive and participative aspects. During the year, 78 vigilance
awareness programmes were conducted, which were attended by
about 2,000 employees.
Business
Disciplinary action under applicable Conduct, Discipline and
!PPEAL2ULESAND#ERTIlED3TANDING/RDERSARETAKENBYTHE
Corporation for irregularities/lapses. The number of disciplinary Report on Corporate
TESTIMONYTO#ORPORATIONSCOMMITMENTTOENERGYTRANSITIONWITHANAIMTO
INCREASEITSRENEWABLEENERGYCAPACITYTO-7BY
74 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
the year 2018-19. A remuneration of `18.50 lakhs and applicable
TAXESWASlXEDBYTHE"OARDFORPAYMENTTOTHECOSTAUDITORSFOR
PUBLIC PROCUREMENT POLICY FOR
THEYEAR
WHICHWASRATIlEDBYTHESHAREHOLDERSINTHE MICRO AND SMALL ENTERPRISES (MSEs)
last AGM. The cost audit for the year 2017-18 was carried out for
ORDER 2012
Chairman’s Desk
VARIOUSUNITSOFTHE#ORPORATIONANDTHECOSTAUDITREPORTWASlLED
by the Central Cost Auditor with the Central Government in the In line with the Public Procurement Policy of the Government
From the
prescribed form within the stipulated time period. The cost audit of India, as amended, your Corporation is required to procure
REPORTFOR
WOULDALSOBElLEDWITHINTHESTIPULATEDTIME minimum 25% of total procurement of Goods and Services from
MSEs, out of which 5% is earmarked for procurement from MSEs
owned by SC/ ST entrepreneurs and 3% from MSEs owned by
SECRETARIAL AUDIT
About IndianOil
women. The procurement from MSEs (excluding crude oil,
The Secretarial Audit Report for the year 2018-19 confirms that
4HE3ECRETARIAL!UDIT2EPORTFORTHEYEAR
CONlRMSTHAT petroleum products & natural gas) during 2018-19 was as under:
the Corporation has complied with the applicable provisions of
the corporate laws, guidelines, rules, etc., which are within the
purview
PURVIEW of
OF the
THE Corporation.
#ORPORATION The
4HE report,
REPORT duly certified BY
DULY CERTIlED by THE
the PARAMETERS TARGETS ACTUAL
Secretarial Auditor, M/s.Ragini Chokshi & Co., Practising Company Total Procurement from MSEs
Secretaries is attached at Annexure-IV to this Report.
Description of
(General, Reserved SC/ST & 25% 29.07%
Women)
Capitals
The Secretarial Auditor has made an observation that the
Corporation has not complied with the requirements with regard Procurement from Reserved 5% (Sub-target
0.5%
to requisite number of Independent Directors on its Board for the SC/ST MSEs out of 25%)
Procurement from Women-owned 3% (Sub-target 0.11%
Board of
CLARIlEDTHATTHE#ORPORATIONBEINGA'OVERNMENT#OMPANYUNDER 4HE DElCIT OF AND UNDER THE SUB
TARGETS WAS DUE
the administrative control of the Ministry of Petroleum & Natural to non-availability of vendors in the sub-category; however, the
Gas, the selection and appointment of Directors, (including target was achieved by procurement from other micro and small
Independent Directors and Woman Director) vests with the enterprises in line with the policy.
Government of India as per the Government guidelines.
Several initiatives were undertaken to identify the entrepreneurs
for procurement of goods and services from MSEs owned by SC/ST
Directors’
REPORTING OF FRAUDS BY AUDITORS
Report
enterprises by way of conducting vendor development programmes.
The Auditors in their report for the year, have not reported any
SUBSIDIARIES, JOINT VENTURES &
Management’s
During the year, a new Joint Venture Company, viz. Indradhanush
Gas Grid Ltd. between your Corporation, ONGC Ltd., GAIL (India)
,TD/IL)NDIA,TDAND.UMALIGARH2ElNERY,TDWASINCORPORATED
in August, 2018 for the purpose of laying Natural Gas pipeline
Responsibility Report
connecting Guwahati to major cities in north-east. The equity
holding of partners is 20 per cent each.
Business
As required under the provisions of the Companies Act, 2013, a
STATEMENTONTHEPERFORMANCEANDlNANCIALPOSITIONOFEACHOFTHE
subsidiaries, joint venture companies and associates is provided
as an annexure to the Consolidated Financial Statement. The Report on Corporate
lNANCIALSTATEMENTSOFTHESUBSIDIARIESHAVEALSOBEENHOSTEDON
the website of the Corporation i.e. www.iocl.com under ‘Financial
Governance
Performance’ section.
In accordance with the provisions of the SEBI guidelines,
your Corporation has framed a policy for determining material
)NDIAN/ILISMETAMORPHOSINGFROMAPURESECTORALCOMPANYWITH subsidiaries, which can be accessed on the Corporation’s website
DOMINANCEINDOWNSTREAMIN)NDIATOAVERTICALLYINTEGRATEDTRANSNATIONAL
at the link https://www.iocl.com/InvestorCenter/Policy_on_
ENERGYBEHEMOTH
Material_Subsidiary.pdf
Statements
Financial
76 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
! BRIEF PROlLE OF THE $IRECTORS PROPOSED TO BE APPOINTED RE
by the Competent Authority or Chairman of the Audit Committee
appointed at the forthcoming AGM is provided in the notice of ASTHECASEMAYBE4HEPOLICYPROVIDESTHATTHECONlDENTIALITYOF
as the case may be. The policy provides that the confidentiality of
the AGM. those reporting violations shall be maintained and they shall not
be subjected to any discriminatory practice. No employee has
Chairman’s Desk
been denied access to the Audit Committee. During the year, the
BOARD MEETINGS Whistle Blower Policy was amended to enable employees to report
From the
During the year, 12 meetings of the Board of Directors were held. leakage / misuse of Unpublished Price Sensitive Information in
The details of the meetings attended by each Director are provided violation of IndianOil’s Insider Trading Code. The policy on Vigil
in the Corporate Governance Report and hence not repeated to Mechanism/Whistle-Blower can be accessed on the Corporation’s
avoid duplication. website at the link https://www.iocl.com/InvestorCenter/Whistle_
About IndianOil
Blower_policy.pdf
PERFORMANCE EVALUATION OF BOARD,
ITS COMMITTEES AND INDIVIDUAL DETAILS OF LOANS / INVESTMENTS /
DIRECTORS GUARANTEES
The provisions of Section 134(3)(p) of the Companies Act, 2013 Your Corporation has provided loans/guarantees to its subsidiaries,
Description of
require a listed entity to include a statement indicating the manner joint ventures & associates and has made investments during the
Capitals
of formal evaluation of performance of the Board, its Committees year in compliance with the provisions of the Companies Act, 2013
and of individual Directors. However, the said provisions are AND RULES NOTIlED THEREUNDER 4HE DETAILS OF SUCH INVESTMENTS
exempt for Government Companies as the performance evaluation made and loans/guarantees provided as on 31st March 2019 are
Board of
EXTRACT OF ANNUAL RETURN
POLICY FOR SELECTION AND As required under the provisions of the Companies Act, 2013, the
extract of Annual Return for the financial year ended 31stst March
EXTRACTOF!NNUAL2ETURNFORTHElNANCIALYEARENDED
APPOINTMENT OF DIRECTORS AND THEIR 2019 in the prescribed form MGT-9 has been prepared and hosted
REMUNERATION on the website of the Corporation www.iocl.com.
Directors’
Report
The provisions of Section 134(3)(e) of the Companies Act, 2013
regarding the policy on Directors appointment and remuneration COMPLIANCE WITH SECRETARIAL
INCLUDING CRITERIA FOR DETERMINING QUALIlCATIONS POSITIVE
Management’s
in Sec 178(3) are exempted for Government Companies. Your Corporation complies with the applicable Secretarial
Standards issued by the Institute of Company Secretaries of India
SIGNIFICANT AND MATERIAL ORDERS (ICSI).
Responsibility Report
.OSIGNIlCANTANDMATERIALORDERSWEREPASSEDBYTHEREGULATORS
or courts or tribunals that impact the going concern status of the The Credit rating assigned by Rating Agencies for the various
debt instruments of the Corporation is provided in the Corporate
Business
Corporation and its operations in future except for notice issued
by National Green Tribunal and Haryana State Pollution Control Governance Report.
Board with regard to air and water pollution caused by PTA Unit
OF0ANIPAT2ElNERY4HE#ORPORATIONSRESPONSEINTHEMATTERHAS INVESTOR EDUCATION & PROTECTION Report on Corporate
BEENlLEDANDTHEMATTERISBEINGFOLLOWED
UPFORRESOLUTION
FUND (IEPF)
Governance
COMPANY
Financial
THElNANCIALPOSITIONOFTHE#ORPORATIONBETWEENTHEENDOFTHE lNANCIALYEARANDOFTHEPROlTANDLOSSOFTHECOMPANYFOR
lNANCIALYEARANDDATEOFTHISREPORT4HEREHASBEENNOCHANGE that period;
in the nature of business of the Corporation.
C THE $IRECTORS HAD TAKEN PROPER AND SUFlCIENT CARE FOR THE
maintenance of adequate accounting records in accordance
DIRECTORS’ RESPONSIBILITY STATEMENT with the provisions of the Companies Act, 2013 for
Pursuant to the requirement under clause (c) of sub-section (3) of safeguarding the assets of the company and for preventing
Sec 134 of the Companies Act, 2013 with respect to the Directors’ and detecting fraud and other irregularities;
2ESPONSIBILITY3TATEMENTITISHEREBYCONlRMEDTHAT (d) the Directors had prepared the annual accounts on a going
(a) in the preparation of the Annual Accounts, the applicable concern basis; and
accounting standards had been followed along with proper E THE$IRECTORSHADLAIDDOWNINTERNALlNANCIALCONTROLSTOBE
explanation relating to material departures; FOLLOWED BY THE COMPANY AND THAT SUCH INTERNAL lNANCIAL
(b) the Directors had selected such accounting policies and controls are adequate and were operating effectively.
applied them consistently and made judgments and estimates (f) the Directors had devised proper systems to ensure
that are reasonable and prudent so as to give a true and fair compliance with the provisions of all applicable laws and that
view of the state of affairs of the company at the end of the such systems were adequate and operating effectively.
Acknowledgements
The Board of Directors would like to express its appreciation for the dedicated and sincere efforts of the
employees of the IndianOil family for the excellent performance achieved during the year 2018-19. The
Board would also like to thank the Government of India, particularly the Ministry of Petroleum & Natural
Gas, as well as the various State Governments, regulatory and statutory authorities for their valuable
guidance and support from time to time. The Board is also thankful to all its stakeholders, including
bankers, investors, members, customers, consultants, technology licensors, contractors, vendors, etc.,
FORTHEIRCONTINUEDSUPPORTANDCONlDENCEREPOSEDINTHE#ORPORATION4HE"OARDWOULDLIKETOPLACEON
RECORDITSAPPRECIATIONFORTHEVALUABLEGUIDANCEANDSIGNIlCANTCONTRIBUTIONMADEBY3HRI3ANJAY+APOOR
Smt. Sushmita Dasgupta, and Shri A. K. Sharma during their tenure on the Board of the Corporation.
(Sanjiv Singh)
Place: New Delhi Chairman
Date : 15 July, 2019
th
DIN: 05280701
60th Annual Report 2018-19 79
About the
Report
AWARDS & ACCOLADES
Chairman’s Desk
IndianOil moved up 31 positions as the top IndianOil bagged five prestigious awards
From the
ranked Indian company among the world’s instituted by the Federation of Indian
Petroleum Industry (FIPI) for the year
largest corporates in the prestigious
2017:
Fortune ‘Global 500’ listing for 2018
About IndianOil
The Company has also retained its top
position in the annual rankings of Business
Today (BT-500), Businessworld (The BW IndianOil was felicitated as the Best
Real 500), Business Standard (BS-1000), Performer in Maharatna category for
Description of
The Economic Times (ET-500) and promotion of SC/ST entrepreneurs by the
Capitals
Financial Express (FE-1000) by net Ministry of Micro, Small and Medium
revenue Ò ‘Innovator of the Year-2017' award
Enterprises, Govt. of India
conferred on IndianOil R&D Centre for
successful commercialisation of
Board of
'Most respected companies' in India in a
IndianOil was conferred the Global HR consecutively for the third time in a row
special report published by Businessworld for leading performance in the growth of
Excellence Award-2019 at the World
in Nov./Dec. 2018 pipeline infrastructure and its optimal
HRD Congress held at Mumbai utilisation in an energy-efficient
manner'
Ò Human Resources Management –
Directors’
Report
IndianOil emerged as one of the 'best Company of the Year' Award for
companies to work for' in India for 2019 excellence across the entire spectrum of
IndianOil was conferred Sustainability 4.0 HR management, particularly
in a study conducted by Great Place to
Management’s
Economic Times
comprehensive sustainability initiatives as Ò ‘Refinery of the Year’ award for Panipat
a Leader in the Mega Large Business Refinery & Petrochemicals Complex for
excellence in production and
Process Sector
operational efficiency, energy
conservation and refinery margin while
Responsibility Report
meeting HSE norms
Business
awards 2018 in three categories:
Manufacturing, Processing & Generation:
Petroleum - Refining & Marketing; Best
Report on Corporate
Maharatna in Manufacturing; and Overall
Best Maharatna
Governance
About the
Report
ANNEXURE-I
DIVIDEND DISTRIBUTION POLICY
Chairman’s Desk
PREAMBLE: • State of economy and capital markets
From the
The shares of Indian Oil Corporation Limited (the “Company”) are • !NYOTHERFACTORASMAYBEDEEMEDlTBYTHE"OARD
listed on National Stock Exchange of India Limited, Mumbai and
» 4HEPROlTSFORAYEARMAYBEADJUSTEDATTHEDISCRETIONOFTHE
BSE Limited, Mumbai. As per the SEBI (Listing Obligations and
Board, for the purpose, to exclude exceptional or one off items
Disclosure Requirements) Regulations, 2015, as amended, the
OR NON
CASH ITEMS RESULTING FROM CHANGE INLAW ACCOUNTING
About IndianOil
Company is required to formulate a Dividend Distribution Policy
policies, accounting standards or otherwise.
which shall be disclosed in its Annual Report and on its website.
» The Company would endeavor to pay minimum annual
The Board of Directors of the Company (“the Board”) has approved
DIVIDEND OF OF 0ROlT !FTER 4AX 0!4 OR OF NET
the Dividend Distribution Policy of the Company (“the policy”).
worth, whichever is higher subject to the maximum dividend
permitted under the extant legal provisions.
OBJECTIVE:
Description of
The Company strives for maximisation of shareholders’ value and » In case the Company declares a lower or no dividend for a
PARTICULAR YEAR DUE TO INADEQUACY OR ABSENCE OF PROlTS
Capitals
believes that this can be attained by driving growth. The policy
endeavours to strike an optimum balance between rewarding RESERVES OR OTHERWISE THE REASONS AND JUSTIlCATION THEREOF
SHAREHOLDERSTHROUGHDIVIDENDANDENSURINGTHATSUFlCIENTPROlTS shall be disclosed to the shareholders through Annual Report
of the Company.
Board of
earnings, after distribution of dividend, shall primarily be
PARAMETERS FOR DIVIDEND DISTRIBUTION: utilized towards this purpose.
» The Company has only one class of shares i.e. Equity shares
» Dividend shall be recommended by the Board for approval
and, hence, the parameters disclosed hereunder apply to the
of shareholders of the Company for payment. However, the
same.
Board may also consider payment of interim dividend as and
Directors’
» The Board while considering payment of dividend for a when it feels appropriate.
Report
lNANCIALYEARMAYINTERALIACONSIDERTHEFOLLOWINGFACTORS
GENERAL:
• 0ROlTFORTHElNANCIALYEARASWELLASGENERALRESERVESOF
Management’s
• 0ROJECTIONSOFFUTUREPROlTSANDCASHmOWS upon the corresponding provision of this policy and the
• Borrowing levels and the capacity to borrow policy shall be construed to be amended accordingly from the
effective date of such provision.
• Present and future Capital expenditure plans of the
» The Company reserves its right to alter, modify, add, delete or
Responsibility Report
Company including organic/inorganic growth avenues.
amend any or all of the provisions of the policy as it may deem
• Applicable taxes including tax on dividend lTORINACCORDANCEWITHTHEGUIDELINESASMAYBEISSUEDBY
SEBI, Government of India or any other regulatory authority.
Business
• Compliance with the provisions of the Companies Act
or any other statutory guidelines including guidelines The change in the policy shall, however, be disclosed
issued by Govt. of India ALONGWITHTHEJUSTIlCATIONTHEREOFONTHE#OMPANYSWEBSITE
and in the ensuing Annual Report in accordance with the Report on Corporate
• Past dividend trend for the Company and the industry extant regulatory provisions. Governance
Statements
Financial
82 Indian Oil Corporation Limited 2nd Integrated Annual Report
ANNEXURE-II
SC/ST/OBC REPORT-I
Annual Statement showing the representation of SCs, STs and OBCs as on 1st January 2019 and number of
appointments made during the preceding calender year
Name of the Public Enterprises : Indian Oil Corporation Limited
Groups Representation of SCs/STs/OBCs Number of appointments made during the calendar year 2018
(As on 1.1.2019) By Direct Recruitment By Promotion By Deputation/
Absorption
Total No. of SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Executives
A 17848 2965 1337 3826 1292 215 111 384 2656 442 186 0 0 0
Non-executives
B 5605 960 588 388 0 0 0 0 454 109 38 0 0 0
C 9591 1805 716 2394 479 68 59 201 1375 252 69 0 0 0
D (Excluding Sweeper) 409 79 20 121 182 37 5 60 0 0 0 0 0 0
D (Sweeper) 5 2 0 1 0 0 0 0 0 0 0 0 0 0
Total (Executives plus
33458 5811 2661 6730 1953 320 175 645 4485 803 293 0 0 0
Non-executives)
SC/ST/OBC REPORT-II
Annual Statement showing the representation of SCs, STs and OBCs in various group A services as on 1st
January 2019 and number of appointments made in the service in various grades in the preceding calender year
Name of the Public Enterprises : Indian Oil Corporation Limited
Pay Scale(in Representation of SCs/STs/OBCs Number of appointments made during the calendar year 2018
rupees) (As on 1.1.2019) By Direct Recruitment By Promotion By Deputation/
Absorption
Total No. of SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
50000-160000 38 5 2 14 23 3 2 6 0 0 0 0 0 0
60000-180000 5936 938 452 1857 1269 212 109 378 142 28 8 0 0 0
70000-200000 3174 507 219 758 No recruitment is made in this Group. 575 105 51 0 0 0
80000-220000 3241 579 252 632 No recruitment is made in this Group. 635 108 42 0 0 0
90000-240000 1775 291 151 293 No recruitment is made in this Group. 468 90 42 0 0 0
100000-260000 1452 319 128 202 No recruitment is made in this Group. 333 62 26 0 0 0
120000-280000 1247 224 105 64 No recruitment is made in this Group. 240 29 13 0 0 0
120000-280000 667 78 24 4 No recruitment is made in this Group. 160 13 4 0 0 0
120000-280000 242 20 3 2 No recruitment is made in this Group. 78 6 0 0 0 0
150000-300000 76 4 1 0 No recruitment is made in this Group. 25 1 0 0 0 0
G.Total 17848 2965 1337 3826 1292 215 111 384 2656 442 186 0 0 0
60th Annual Report 2018-19 83
About the
Report
ANNEXURE-III
HIGHLIGHTS OF CSR ACTIVITIES DURING KEY CSR INITIATIVES IN 2018-19
Chairman’s Desk
2018-19 1. IndianOil Vidushi
From the
IndianOil has been actively engaged in a gamut of social welfare/ 7ITHANOBJECTIVETOHELPGIRLSFROMTHEUNDER
PRIVILEGEDSECTIONS
upliftment activities across the nation, in addition to reaching of the society to gain admission in prestigious Engineering
essential fuels viz. Kerosene, LPG, Petrol, Diesel, etc. to the Institutes viz. IITs, NITs, CETs, IIITs, etc., IndianOil started a
nook and corner of the country. IndianOil’s key Corporate Social unique program “IndianOil Vidushi” in July, 2018 at 2 residential
About IndianOil
Responsibility (CSR) thrust areas include ‘Safe drinking water centres viz. Bhubaneswar (Odisha) & Noida (Uttar Pradesh).
and protection of water resources’, ‘Healthcare and sanitation’, While the Bhubaneswar centre caters to the students of Odisha,
@%DUCATION AND EMPLOYMENT
ENHANCING VOCATIONAL SKILLS Jharkhand & Chhattisgarh, the Noida centre primarilly caters
‘Empowerment of women and socially/economically backward to the students from J&K, Uttarakhand, Himachal Pradesh and
groups’, etc. IndianOil has a long standing CSR legacy, which started Punjab. The students are provided specialized coaching and
much before the CSR legislation (Companies Act, 2013) came into mentoring after class XIIth to succeed in JEE Main, JEE Advanced
Description of
FORCEIN
4HE#32PROJECTSOF)NDIAN/ILAREUNDERTAKEN & other Central and State Engineering Entrance Examinations.
mostly for improving the quality of life in various communities,
Capitals
Maximum 30 girls are selected for each centre through written test
which invariably include marginalized / underprivileged sections ANDPERSONALINTERVIEWONMERITnCUM
MEANSBASIS4HEENTIRECOST
of the society, viz. schedule caste, schedule tribe, other backward for specialized coaching, study material, boarding, food & other
CASTE PHYSICALLY HANDICAPPED ETC 7ITH 0AN
)NDIA PRESENCE consumables, blanket, hygiene kit, dress set, health insurance
Board of
Out of 56 girls, 46 cleared JEE Main, out of which 17 girls cleared
THE7ESTAND4AMIL.ADU+ERALAINTHE3OUTH&ORTHEYEAR
JEE Advanced and will have the opportunity to join various IITs.
19, entire CSR budget allocation of `490.60 crore was spent,
thereby achieving 100% budget utilization.
Directors’
Report
700 Budget
101%
Utilization (%) 100% 100%
Management’s
IndianOil Vidushi students - Noida Centre, UP
500 97%
97%
2. IndianOil Aarogyam
95%
400
)NDIAN/IL !AROGYAM THE mAGSHIP #32 SCHEME WAS LAUNCHED
Responsibility Report
93% IN
4WELVE -OBILE -EDICAL 5NITS --5 EACH WITH
300 A
MEMBER TEAM CONSISTING OF DOCTOR .URSE .URSING
91% !TTENDANT AND $RIVER
CUM
#OMMUNITY -OBILIZER HAVE BEEN
Business
200 OPERATINGINTHECATCHMENTAREASOF2ElNERY5NITSIE-ATHURA
89% Bongaigaon & Paradip. The MMUs cover more than 140 villages
INTHECATCHMENTAREASOF2ElNERY5NITS)N
PATIENT
100 87% Report on Corporate
footfall in the target geographies was about 90,000.
0 85%
Governance
3. Aids & Assistive devices to Divyangjan 5. Skill Development Institute, Bhubaneswar, Odisha
Assistive devices like tricycles, wheel chairs, crutches, walking 3KILL$EVELOPMENT)NSTITUTE"HUBANESWAR3$)
" WASESTABLISHED
STICKS "RAILLE KITS FOR VISUALLY IMPAIRED HEARING AIDS ARTIlCIAL on 9th May 2016 with an aim to provide opportunities for skilling
limbs, etc. were provided to more than 20,000 Divyangjan across to the unemployed and underprivileged youth of Odisha and to
STATESOF)NDIAINASSOCIATIONWITH!RTIlCIAL,IMBS-ANUFACTURING PROVIDESKILLEDMANPOWERTOTHEINDUSTRY)NITIALLY3$)
"STARTED
#ORPORATION!,)-#/ 4HEBENElCIARIESWERESELECTEDANDTHEIR operation in 2 trades viz. Industrial Electrician & Welder. However,
disabilities were assessed through assessment camps organized with increasing demand of skilled manpower, 6 new courses
in the villages near the target locations. The training to use these were added viz. Computer Data Application (only for girls), Fitter
assistive devices were also provided at the distribution camps. Fabrication, Instrumentation Technician, Pipe Fitter (City gas
Distribution), Solar PV Installation and LPG Mechanic. About
240 students per batch are being skilled in 8 trade courses,
which are of 3 to 6 months duration each. Since inception, 810
UNDERPRIVILEGED YOUTH WERE SKILLED AND CERTIlED WITH OVER
placements. Hon’ble President of India laid the foundation of the
PERMANENT CAMPUS OF 3$)
" ON AT 4ARABOI *ATNI
/DISHAWHICHWILLBEAMEGA
WORLD
CLASSMODELSKILLACADEMYTO
be set up with technical support from National Skill Development
Corporation (NSDC). Once functional, about 3,000 to 4,000
youth will be trained every year in 16 regular trades pertaining to
the hydrocarbon sector and local industries.
Students of Govt. ITI & Polytechnic, Contai, Purba Medinipur, West Bengal
60th Annual Report 2018-19 85
About the
Report
6. Assam Oil School of Nursing, Digboi, Assam
Assam Oil School of Nursing (AOSN), established in 1986, offers
YEAR$IPLOMAIN'ENERAL.URSINGAND-IDWIFERY'.- COURSE
Chairman’s Desk
TOYOUNGGIRLSWITHINTAKECAPACITYOFSTUDENTSPERYEAR
YEAR
B.Sc. (Nursing) course started from the same campus in 2014
From the
with intake of 30 students per year. Before AOSN came into being,
THERE WAS A DEARTH OF QUALIlED NURSES IN THE .ORTH %AST !/3.
ISABLETOPROVIDEOPPORTUNITIESTOYOUNGUNDER
PRIVILEGEDGIRLSTO
bridge this gap and simultaneously provide them stable careers
About IndianOil
and livelihood. Since inception, 410 students have successfully
completed GNM course with 100% placement record.
Description of
AOD Hospital, Digboi, Assam
Capitals
8. Assam Oil Division Hospital, Digboi, Assam
Assam Oil Division Hospital, Digboi, established in 1906,
Board of
HOSPITALOUTOFWHICHABOUTARENON
EMPLOYEEPATIENTS4HIS
hospital registers about 4,000 patients for indoor admissions and
conducts operative procedures on about 2,000 patients every year.
Health camps of general and specialized nature are also organized
regularly by the hospital to reach out to the poor villagers in the
vicinity, who have no access to medical consultations or treatment.
Directors’
Report
$URING
NON
EMPLOYEEPATIENTSWERETREATEDATTHE
B.Sc (Nursing) students at Assam Oil School of Nursing, Digboi
hospital.
Responsibility Report
die every year in India, which can be
attributable to diseases related to indoor
air pollution. Pradhan Mantri Ujjwala
Business
Yojana (PMUY) aims to safeguard
the health of women & children by
providing them with cleaner cooking Report on Corporate
fuel, i.e. LPG. Under this scheme,
IndianOil contributes 20% of 2% of
Governance
Medical Aid being given under Sarve Santu Niramaya, Digboi, Assam Sports Scholars - Kajal Kumari (Carrom) & Manika Batra (Table Tennis)
60th Annual Report 2018-19 87
About the
Report
12. Robotic Scavenging Machine (Bandicoot) to
Kumbakonam Municipal Corporation, Tamil Nadu
Chairman’s Desk
As per the data provided by National Commission for Safai
Karamacharis (NCSK), at least one Indian worker has died while
From the
CLEANINGSEWERSORSEPTICTANKSEVERYlVEDAYSSINCETHEBEGINNING
of 2017 and is considered one of country’s deadliest jobs and most
insidious form of caste discrimination. To alleviate this problem,
IndianOil has provided Robotic Scavenging Machine (named
Bandicoot) to Kumbakonam Municipal Corporation, Tamil Nadu.
About IndianOil
"ANDICOOTHASACONTROLUNITUSERINTERFACEANDAROBOTICSPIDER
like device at the bottom with four limbs, which is lowered into
the manholes for undertaking cleaning operations. It is equipped
with seven cameras and many sensors. The limbs scoop/collect
the silt from different angles inside the manhole and heap the
dirt at one place, which is then lifted up using ropes & buckets.
Description of
Bandicoot works with precision, takes less time, requires only one/
TWOPERSONSTOOPERATEANDSAVESMANYMAN
HOURS
Capitals
Bandicoot Robotic Scavenging Machine
1. A brief outline of the company’s CSR policy 2. The Composition of the CSR & Sustainable
Directors’
IndianOil’s CSR is guided by its corporate vision of caring for Development Committee as on 31.03.2019
Report
environment and community. IndianOil believes that CSR is its
continuing commitment to conduct business in an ethical and
Management’s
community residing in the vicinity of its establishments and
society at large.
IndianOil’s Sustainability & Corporate Social Responsibility 2 Shri Sankar Chakraborti, Independent Director Member
(S&CSR) vision is to operate its activities in providing energy
Responsibility Report
SOLUTIONS TO ITS CUSTOMERS IN A MANNER THAT IS EFlCIENT SAFE
ethical, which minimizes negative impact on the environment and 3 Director (Finance) Member
enhances quality of life of the community, towards sustaining a
Business
holistic business.
4 Director (Planning & Business Development) Member
The S&CSR policy of IndianOil is attached at Annexure-A. Overview Report on Corporate
of the CSR initiatives, which were proposed to be undertaken
DURING
ISPROVIDEDATAnnexure-B.
during 2018-19, is provided at Annexure-B. The S&CSR policy is
5 Director (Human Resources) Member
Governance
ALSOAVAILABLEATTHE#ORPORATIONSWEBSITE52,HTTPSIOCLCOM
also available at the Corporation’s website (URL: https://iocl.com/
AboutUs/IOC_S&CSR_Policy.pdf). The CSR initiatives undertaken
DURING the
during THE financial
lNANCIAL year
YEAR are
ARE also
ALSO uploaded
UPLOADED at
AT the
THE Corporation’s
#ORPORATIONS
6 Director (Marketing) Member
website.
Statements
Financial
88 Indian Oil Corporation Limited 2nd Integrated Annual Report
4HUS THE PRESCRIBED ALLOCATION FOR THE YEAR
AS PER
In line with the above vision, IndianOil’s S&CSR mission
the provisions of the Companies Act 2013, was ` 490.60 crore.
is to:
Considering that the entire CSR budget of the previous year was
SPENTANDNOAMOUNTWASCARRIEDFORWARDTO
THETOTAL » Meet stakeholders’ aspirations for value creation and grow
#32BUDGETFOR
WAS` 490.60 crore. along with the society.
» Ensure a safe & healthy working environment.
4. Details of CSR expenditure during FY 2018-19
A 4OTALAMOUNTSPENTFORTHElNANCIALYEAR » Incorporate environmental and social considerations in
business decisions.
4HE TOTAL AMOUNT SPENT ON #32 INITIATIVES DURING
was `490.60 crore, which corresponds to 100% utilization of » Earn stakeholders’ goodwill and build a reputation as a
the CSR budget allocated for the year. responsible corporate citizen.
(b) Amount unspent, if any » Conduct business with ethics and transparency & follow
responsible business practices.
Nil
(c) Manner
(c) -ANNERINWHICHTHEAMOUNTWASSPENTDURINGTHElNANCIAL
in which the amount was spent during the financial IndianOil shall pursue the following thrust areas under
year is provided in Annexure-C. S&CSR:
» %FlCIENCYINOPERATIONSANDPROCESSES
5. In case the company has failed to spend the two
» Safe and healthy environment in and around the workplaces.
per cent of the average net profit of the last three
financial years or any part thereof, the company » Basic livelihood needs & societal empowerment.
shall provide the reasons for not spending the • Safe drinking water and protection of water resources.
amount in its Board report. • Healthcare and sanitation.
The Company spent ` 490.60 crore, which is two per cent of the
• %DUCATIONANDEMPLOYMENT
ENHANCINGVOCATIONALSKILLS
AVERAGE NET PROlTS OF THE LAST THREE lNANCIAL YEARS AS PER THE
Companies Act 2013. • Empowerment of women and socially/economically
backward groups, etc.
6. A responsibility statement of the CSR Committee » Tourist friendly facilities at monuments of national importance.
that the implementation and monitoring of CSR
» Environmentally sustainable practices within & beyond the
Policy, is in compliance with CSR objectives and ORGANIZATIONSPREMISES
Policy of the company.
• Clean energy options.
The Board of IndianOil has approved the S&CSR Policy and
accordingly, the CSR activities have been undertaken in line with • Rain water harvesting (at company owned premises,
the Policy. retail outlets).
• Limit emission of Greenhouse Gases.
• Reduce/reuse/recycle resources/waste & dispose waste
streams in environmentally safe manner.
» 0ROMOTION OF RESPONSIBLE BUSINESS PRACTICES #ONDUCT
3D
3D
business with transparency, integrity and accountability.
Ranjan Kumar Mohapatra Parindu K. Bhagat IndianOil’s S&CSR Policy will be operative within the overall ambit
[Director(HR)] [Chairman, of CSR Provisions of the Companies Act 2013 (including Schedule
CSR&SD Committee] VII), Companies (CSR Policy) Rules 2014, DPE’s guidelines on
60th Annual Report 2018-19 89
About the
Report
#323USTAINABILITYANDCLARIlCATIONSAMENDMENTSTHEREOFFROM Activities funded from the CSR budget will have following
time to time. 6 components:
IndianOil shall constitute a Sustainability & CSR Committee of the a) Need Assessment
Chairman’s Desk
Board, consisting of at least three Directors, out of which at least
one Director shall be an independent director. b) Modalities of Execution
From the
)NDIAN/ILSHALLEARMARKOFAVERAGENETPROlTSEARNEDDURING c) Implementation Schedule
THREE IMMEDIATELY PRECEDING lNANCIAL YEARS FOR @#32 BUDGET OF d) Modalities of Utilization of Funds
THEYEARWHICHWILLBENON
LAPSABLE
e) Monitoring/Reporting Mechanism and
The surplus arising out of the projects/programs/initiatives, which
About IndianOil
are funded from the CSR budget, shall not form part of the f) Impact assessment (for large projects)
BUSINESSPROlT S&CSR Policy and its contents shall be displayed at IndianOil’s
If IndianOil fails to spend the CSR budget of a year, the reasons for WEBSITE AS PER THE FORMAT SPECIlED IN THE #32 2ULES 4HE
NOTSPENDINGTHEAMOUNTWILLBESPECIlEDINTHE$IRECTORS2EPORT Directors’ Report shall include an annual report on S&CSR
activities.
All S&CSR activities, which are funded from the CSR budget,
Description of
shall exclude those undertaken in pursuance of normal course of
Capitals
business.
Board of
Overview of projects, which were proposed to be undertaken in 2018-19 (in line with the CSR policy)
Sl. Major CSR Heads Sector Local/ State District Monitoring Process: Budget
No. Other Monitoring Through (` crore)
Annual CSR Allocation as 490.60
Directors’
Report
per Companies Act 2013
Brought forward from Nil
previous year
Management’s
Continuing Flagship/Special Projects
1 MoP&NG LPG Scheme for Environment Local/ All India All India LPG Group of Marketing 85.38
BPL Families Sust. Other Division
2 Institute of Chemical Education Local Odisha Bhubaneswar Corp. Learning & 54.71
Responsibility Report
4ECHNOLOGY
)NDIAN/IL Development group
campus, Bhubaneswar
3 Skill Development Institute Skill Local Odisha Bhubaneswar Corp. Learning & 47.5
Business
(SDI), Bhubaneswar Development Development group
4 Swarna Jayanti Samudayik Healthcare Local Uttar Mathura 5NIT
LEVEL#OMMITTEE 6.50
Hospital, Mathura Pradesh -ATHURA2ElNERY
Report on Corporate
5 Assam Oil School of Nursing, Skill Local Assam Tinsukia 5NIT
LEVEL#OMMITTEE!/$ 6.39
Digboi Development Digboi
Governance
6 SDIs by BPC, HPC, ONGC, Skill Local 5 States 5 Districts Corp. Learning & 5.50
OIL & GAIL Development Development group
7 AOD Hospital, Digboi Healthcare Local Assam Tinsukia 5NIT
LEVEL#OMMITTEE!/$ 4.00
Digboi
8 IndianOil Sports Scholarship Sports Local/ All India All India -ULTI
DISCIPLINARY#OMMITTEE 3.80
Scheme Other Mktg. HO
9 Kendriya Vidyalaya, Mathura Education Local Uttar Mathura 5NIT
LEVEL#OMMITTEE 3.50
Statements
Financial
Pradesh -ATHURA2ElNERY
90 Indian Oil Corporation Limited 2nd Integrated Annual Report
Sl. Major CSR Heads Sector Local/ State District Monitoring Process: Budget
No. Other Monitoring Through (` crore)
10 Higher Secondary School, Education Local Assam Bongaigaon 5NIT
LEVEL#OMMITTEE 3.40
Bongaigaon "ONGAIGAON2ElNERY
11 Kendriya Vidyalaya, Haldia Education Local West East 5NIT
LEVEL#OMMITTEE(ALDIA 3.04
Bengal Midnapore 2ElNERY
12 Kendriya Vidyalaya, Barauni Education Local Bihar Begusarai 5NIT
LEVEL#OMMITTEE 3.00
"ARAUNI2ElNERY
13 3WACHH)CONIC0LACE-ATA Sanitation/ Local J&K Jammu 5NIT
LEVEL#OMMITTEE0UNJAB 2.65
Vaishno Devi, Katra Drinking Water 3TATE/FlCE
14 IndianOil Academic Education Local/ All India All India Committee of IIPM, Gurgaon 2.50
Scholarship Scheme Other
(Residual)
15 3WACHH)CONIC0LACE'AYA Sanitation/ Local Bihar Gaya 5NIT
LEVEL#OMMITTEE"IHAR 2.46
Teerth, Gaya drinking Water 3TATE/FlCE
16 Kendriya Vidyalaya, Education Local Assam Kamrup Metro 5NIT
LEVEL#OMMITTEE 2.14
Guwahati 'UWAHATI2ElNERY
17 IndianOil Vidushi, Education Local 2 States 2 Districts 5NIT
LEVEL#OMMITTEESOF 1.98
Bhubaneswar & NOIDA Pipelines HO & Odisha State
/FlCE
18 IndianOil Gyanodaya Education Local 6 States 8 Districts 5NIT
LEVEL#OMMITTEESAT 1.97
(scholarship scheme for 2ElNERY5NITS
students of Govt. ITIs and
Polytechnics)
19 Yoga Centre, New Delhi Healthcare Local Delhi South Delhi Mktg. Div. Northern Region 1.91
/FlCE
20 IndianOil Aarogyam (Mobile Healthcare Local 3 States 3 Districts 5NIT
LEVEL#OMMITTEESAT 0.88
Medical Units plying for the 2ElNERY5NITS
VILLAGERSNEAR2ElNERY
Units)
21 Waste to Fuel project, Environment Local Uttar Varanasi Planning & Business 0.45
Varanasi Sust. Pradesh Development Group
22 Sarve Santu Niramaya, Healthcare Local Assam Tinsukia 5NIT
LEVEL#OMMITTEE!/$ 0.15
Digboi Digboi
23 IndianOil Chikitsa Seva Healthcare Local Assam Bongaigaon 5NIT
LEVEL#OMMITTEE 0.07
Kendra, Bongaigaon "ONGAIGAON2ElNERY
New Projects near Units/ Installations
1 Marketing Division All sectors Local/ All India All India $IVISIONAL5NIT
LEVEL 86.52
Other Committees
2 Planning & Business All sectors Local/ All India All India $IVISIONAL5NIT
LEVEL 50.00
Development Group Other Committees
3 2ElNERIES$IVISION All sectors Local/ 7 States 9 Districts $IVISIONAL5NIT
LEVEL 45.00
Other Committees
4 Pipelines Division All sectors Local/ All India All India $IVISIONAL5NIT
LEVEL 25.00
Other Committees
5 #ORPORATE/FlCE All sectors Local/ All India All India #ORPORATE$IVISIONAL5NIT
8.67
Other level Committees
6 R&D Centre All sectors Local Haryana Faridabad $IVISIONAL5NIT
LEVEL 7.00
Committees
7 Admin. overheads [incl.
24.53
Training, Baseline study, etc]
Total CSR Budget for 2018-19 490.60
60th Annual Report 2018-19 91
About the
Report
Annexure-C
Details of amount spent in 2018-19
Chairman’s Desk
Sl. CSR project or activity Sector, in which the Projects or programs Amount Amount spent Cum. Exp Amount
From the
No. IDENTIlED project is covered outlay spent: Direct
Local/ State/ District Direct Overheads or through
Other exp. Implementing
Agency (IA)
` crore ` crore Overheads ` crore
About IndianOil
Flagship Projects/Special projects
1 MoP&NG LPG Scheme for Environment Sust. Local/ All India/ All 85.38 85.38
85.38 Direct
BPL Families Other India
2 Skill Development Institute Skill Development Local Odisha/ 47.50 77.09
77.09 Direct
(SDI), Bhubaneswar Bhubaneswar
3 Institute of Chemical Education Local Odisha/ 54.71 54.71
54.71 IA
Description of
4ECHNOLOGY
)NDIAN/IL Bhubaneswar
Campus, Bhubaneswar
Capitals
4 Developmental works for Sanitation Local Haridwar/ 0.00 34.00
34.00 IA
river Ganga at Har Ki Pauri, Uttarakhand
Haridwar through Clean
Board of
Mathura
6 SDIs by BPC, HPC, ONGC, Skill Development Local 5 States/ 5 5.50 4.75
4.75 IA
OIL & GAIL Districts
7 Kendriya Vidyalaya, Education Local Uttar 3.50 4.13
4.13 Direct
Mathura Pradesh/
Mathura
Directors’
Report
8 3WACHH)CONIC0LACE-ATA Sanitation/ drinking Local J&K/ Jammu 2.65 4.12
4.12 IA
Vaishno Devi, Katra water
9 Welfare of sanitation Sanitation/ Local Prayagraj/ 0.00 4.00
4.00 IA
Management’s
Kumbh Kosh
10 AOD Hospital, Digboi Healthcare Local Assam/ 4.00 3.86
3.86 Direct
Tinsukia
11 Assam Oil School of Skill Development Local Assam/ 6.39 3.57
3.57 Direct
Responsibility Report
Nursing, Digboi Tinsukia
12 Kendriya Vidyalaya, Education Local Bihar/ 3.00 3.15
3.15 Direct
Barauni Begusarai
Business
13 Higher Secondary School, Education Local Assam/ 3.40 3.12
3.12 Direct
Bongaigaon Bongaigaon
14 IEC activities to educate Education Local/ All India/ All 0.00 3.00
3.00 IA
general public regarding Other India Report on Corporate
the need to conserve
petroleum products through
Governance
Petroleum Conservation
Research Association
15 Kendriya Vidyalaya, Haldia Education Local West 3.04 2.55
2.55 Direct
Bengal/ East
Midnapore
16 Kendriya Vidyalaya, Education Local Assam/ 2.14 2.14
2.14 Direct
Statements
Guwahati Kamrup
Financial
Metro
92 Indian Oil Corporation Limited 2nd Integrated Annual Report
Sl. CSR project or activity Sector, in which the Projects or programs Amount Amount spent Cum. Exp Amount
No. IDENTIlED project is covered outlay spent: Direct
Local/ State/ District Direct Overheads or through
Other exp. Implementing
Agency (IA)
` crore ` crore Overheads ` crore
17 Yoga Centre, New Delhi Healthcare Local Delhi/ South 1.91 1.97
1.97 IA
Delhi
18 IndianOil Academic Education Local/ All India/ All 2.50 1.74
1.74 Direct
Scholarship (Residual) Other India
19 IndianOil Aarogyam Healthcare Local 3 States/ 3 0.88 1.69
1.69 Direct
Districts
20 IndianOil Vidushi, Education Local 2 States/ 2 1.98 1.52
1.52 Direct
Bhubaneswar & NOIDA Districts
21 IndianOil Sports Sports Local/ All India/ All 3.80 1.35
1.35 Direct
Scholarships Scheme Other India
22 IndianOil Gyanodaya Education Local 6 States/ 8 1.97 0.86
0.86 Direct
Scheme Districts
23 3WACHH)CONIC0LACE'AYA Sanitation/ Drinking Local Bihar/Gaya 2.46 0.76
0.76 IA
Teerth, Gaya water
24 5 Kg LPG DBC under Environment Sust. Local/ All India/ All 0.00 0.54
0.54 Direct
Pradhan Mantri Ujjwala Other India
Yojana
25 Waste to Fuel project, Environment Sust. Local Uttar 0.45 0.45
0.45 Direct
Varanasi Pradesh/
Varanasi
26 Sarve Santu Niramaya, Healthcare Local Assam/ 0.15 0.13
0.13 Direct
Digboi Tinsukia
27 IndianOil Chikitsa Seva Healthcare Local Assam/ 0.07 0.08
0.08 Direct
Kendra, Bongaigaon Bongaigaon
New projects near establishments across India*
1 Marketing Division All sectors Local/ 7 States/9 86.52 84.19
84.19 Direct/IA
Other Districts
2 2ElNERIES$IVISION All sectors Local/ All India 45.00 48.96
48.96 Direct/IA
Other
3 Pipelines Division All sectors Local/ All India 25.00 25.5
25.5 Direct/IA
Other
4 R&D Centre All sectors Local Haryana/ 7.00 2.77
2.77 Direct/IA
Faridabad
5 #ORPORATE/FlCE All sectors Local/ All India 8.67 0.06
0.06 Direct/IA
Other
6 P&BD All sectors Local/ All India 50.00 0.00
0.00 Direct/IA
Other
Admin. Overheads [incl. Admin. Overhead Local/ All India 24.53
22.45 22.45 Direct/IA
Training, Baseline study, Other
etc.]
Total 490.60 468.15 22.45 490.60
* New projects of various Divisions include activities like development of skill development centres, construction of school buildings,
provision of furniture, computers, books, etc. to schools, installation of hand pumps / bore wells, construction of elevated water
TANKSPROVISIONOFWATERTAPCONNECTIONWATERPURIlERSWATERCOOLERSTOSCHOOLSCOMMUNITYCENTRESORGANIZINGHEALTHCAMPSFOR
immunization, HIV/AIDS awareness, pulse polio, eye care, blood donation, etc., provision of ambulances, medical equipments, etc.
to hospitals/health centres, organizing sports meets, livelihood projects, etc.
60th Annual Report 2018-19 93
About the
Report
ANNEXURE-IV
Form No. MR-3
Chairman’s Desk
SECRETARIAL AUDIT REPORT
From the
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2019
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
About IndianOil
To, (v) The following Regulations and Guidelines prescribed under
The Members, the Securities and Exchange Board of India Act, 1992
@3%")!CT
INDIAN OIL CORPORATION LIMITED
Indian Oil Bhavan, a. The Securities and Exchange Board of India (Substantial
Description of
Acquisition of Shares and Takeovers) Regulations, 2011
'
!LI9AVAR*UNG-ARG
Capitals
Bandra (East), b. The Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015
-UMBAI
We have conducted the secretarial audit of the compliance c. The Securities and Exchange Board of India (Issue of Capital
Board of
d. The Securities and Exchange Board of India (Share Based
FORTHElNANCIALYEARENDEDst March, 2019. Secretarial Audit %MPLOYEE "ENElTS 2EGULATIONS
.O SUCH EVENT
was conducted in a manner that provided us a reasonable basis during Audit Period)
for evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon. e. The Securities and Exchange Board of India (Issue and Listing
of Debt Securities) Regulations, 2008.
"ASEDONOURVERIlCATIONOFBOOKSPAPERSMINUTEBOOKSFORMS
Directors’
f. The Securities and Exchange Board of India (Registrars to
Report
AND RETURNS lLED AND OTHER RECORDS MAINTAINED BY THE #OMPANY
AND ALSO THE INFORMATION PROVIDED BY THE #OMPANY ITS OFlCERS an Issue and Share Transfer Agents) Regulations, 1993
agents and authorized representatives during the conduct of regarding the Companies Act and dealing with client.
Management’s
Company has, during the audit period covering 1st April, 2018 %QUITY 3HARES 2EGULATIONS
.O SUCH EVENT DURING
to 31st March, 2019 complied with the statutory provisions listed Audit Period)
HEREUNDERANDALSOTHATTHE#OMPANYHASPROPER"OARD
PROCESSES
ANDCOMPLIANCE
MECHANISMINPLACETOTHEEXTENTINTHEMANNER h. The Securities and Exchange Board of India (Buy Back of
ANDSUBJECTTOTHEREPORTINGMADEHEREINAFTER Securities) Regulations, 2018.
Responsibility Report
We have examined the books, papers, minute books, forms and i. Guidelines on Corporate Governance for Central Public Sector
RETURNSlLEDANDOTHERRECORDSMAINTAINEDBYTHE#OMPANYFORTHE Enterprises (Guidelines), as issued by the Department of
Public Enterprises (DPE) of Ministry of Heavy Industries and
Business
audit period 1st April, 2018 to 31st March, 2019 according to the
PROVISIONSOF Public Enterprises, Government of India.
(i) The Companies Act, 2013 (“the Act”) and the rules made (vi) The following Acts and Rules made thereunder pertaining to Report on Corporate
thereunder; OILANDGASBUSINESSASAPPLICABLETOTHE#OMPANY
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and a. The Petroleum Act,1934;
Governance
the rules made thereunder; b. The Oil Fields (Regulation and Development) Act,1948;
III 4HE $EPOSITORIES !CT AND THE 2EGULATIONS AND "YE
c. The Oil Industry (Development) Act, 1974;
laws framed thereunder;
d. Mines and Minerals (Regulation and Development) Act,
(iv) Foreign Exchange Management Act,1999 and the Rules 1957
and Regulation made there under to the extent of Foreign
Statements
g. Petroleum & Mineral Pipelines (Acquisition of Rights of India. The Company has responded to the stock exchanges
User in Land) Act, 1962 explaining its position with a request to waive off the penalty.
h. Petroleum & Natural Gas Rules 1959, • Adequate notices were given to all directors to schedule the
Board Meetings, and the same was sent at least seven days
i. The Oil Industry (Development) Act, 1974.
in advance, agenda and detailed notes on agenda were sent
We have also examined compliance with: at least 7 days before the date of Meeting, and a system
exists for seeking and obtaining further information and
• the applicable clauses of Secretarial Standards in respect of
CLARIlCATIONSONTHEAGENDAITEMSBEFORETHEMEETINGANDFOR
-EETING OF "OARD OF $IRECTORS 33
AND 'ENERAL -EETINGS
meaningful participation at the meeting.
33
ISSUED BY THE )NSTITUTE OF #OMPANY 3ECRETARIES OF
India; • As per the minutes of the Board duly recorded and signed by
Chairman, the decisions of the Board were unanimous and no
• Securities and Exchange Board of India (Listing Obligation &
dissenting views have been recorded.
Disclosure Requirement) Regulation, 2015 “SEBI (LODR)”.
• The agenda items are deliberated before passing the same and
During the period under review the Company has complied with the
the views / observations made by the Directors are recorded in
provisions of the Act, Rules, Regulations, Guidelines, Standards,
the minutes.
etc. mentioned above except to the extent as mentioned below;
We further report that there are adequate systems and processes
A 4HE#OMPANYDIDNOTHAVE
in the Company commensurate with size and operations of the
1. Requisite number of Independent Directors on its Board Company to monitor and ensure compliance with applicable laws,
as required under Regulation 17 of SEBI(LODR) for the rules, regulation and guidelines.
period 26th July 2018 to 31st March, 2019;
We further report that during the audit period the Company has
2. Woman Director on its Board as required under Section MADEBUY
BACKOFFULLYPAIDUPEQUITYSHARESOF
149 (1) of the Act read with Companies (Appointment and the Company of face value of `10 each at price of `
PER
1UALIlCATION OF $IRECTORS 2ULES AND 2EGULATION share.
17 of SEBI (LODR) for the period 6th July 2018 to 25th
July 2018 and 12th March 2019 to 19th March 2019.
We further report that
• The Board of Directors of the Company is duly constituted
For Ragini Chokshi & Co.
and the changes in the composition of the Board of Directors
that took place during the period under review were carried (Company Secretaries)
out in the compliance with the provision of the Act. However,
the Company has not been able to appoint requisite number
of Independent Directors and Woman Director as required
under the provisions of Section 149 of the Act and Regulation
17 of SEBI (LODR) as mentioned above. BSE and NSE had 3D
LEVIED MONETARY lNE ON THE #OMPANY UNDER 2EGULATION Ragini Chokshi
OF 3%"),/$2 FOR NON
COMPLIANCE WITH THE REQUIREMENTS (Partner)
pertaining to the composition of the Board including failure
C. P. No. 1436
to appoint woman director for the quarter ended September
2018, December 2018 and March 2019. We are further FCS No. 2390
informed that the Company being a Central Government 0LACE Mumbai
Company under the administrative control of the Ministry $ATE11-05-2019
of Petroleum & Natural Gas (MoP&NG), the appointment
of Directors (including Independent Directors) can be made
only after receiving nomination from Govt. of India and the
Company has suitably taken up the matter with Govt. of
60th Annual Report 2018-19 95
About the
Report
ANNEXURE-V
Form No. AOC-2
Chairman’s Desk
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts)
From the
Rules, 2014)
1. Details of contracts or arrangements or transactions not at arm’s length basis:
About IndianOil
Sr. Name(s) of Nature of Duration of Salient terms of *USTIlCATIONFOR Date(s) of Amount Date on
No. the related contracts/ the contracts / the contracts or entering into approval by paid as which the
party and arrangements/ arrangements / arrangements such contracts or the Board advances, special
nature of transactions transactions or transactions arrangements or if any resolution
relationship including the transactions was passed
value, if any in general
meeting as
Description of
required
Capitals
UNDERlRST
proviso to
section 188
Board of
(IOAGPL) `. 36.52 crore both its promoters
to IOAGPL by for obtaining
(a Joint
levying a fee of Bank Guarantee
Venture
0.10 per cent from bank for
Company
per annum submission to
in which
Directors’
PNGRB for award
IndianOil
Report
of authorization
holds 50%
for CGD projects.
equity
Management’s
2
DO
DO
25 years Issuance of
DO
25.02.19 NIL Not
Corporate applicable
Guarantee of
`. 191 crore
to IOAGPL by
Responsibility Report
levying a fee of
0.10 per cent
per annum
Business
2. Details of material contracts or arrangement or transactions at arm’s length basis: NIL Report on Corporate
3D
(Sanjiv Singh)
Statements
ANNEXURE-VI
Report on Energy Conservation, Technology Absorption and Foreign Exchange Earning
as per the provisions of the Companies Act 2013 and rules notified thereunder
A) Conservation of Energy
a. The steps taken for conservation of energy: 16 schemes with an energy saving of 5,968 SRFT/year were
IMPLEMENTEDDURING
Engineers India Limited was appointed to carry out Energy
%FlCIENCY)MPROVEMENT3TUDY%%)3 ACROSSRElNERIESEXCLUDING In addition to the above, 55 schemes with saving potential of
0ARADIP2ElNERY ASARESULTOFWHICHIMPLEMENTABLESCHEMES APPROX 32&4YEAR HAVE BEEN IDENTIlED IN
HOUSE BY THE
WITHSAVINGPOTENTIALOF32&4YEARWEREIDENTIlEDOUT RElNERIESOFWHICHSCHEMESHAVINGENERGYSAVINGSOF
OF THESE SCHEMES WERE IMPLEMENTED DURING
WITH 32&4YEARWEREIMPLEMENTEDDURING
saving of about 13940 SRFT/year.
As a result, during the year, 67 Energy Conservation (ENCON)
In addition, Petroleum Conservation Research Association 3CHEMESWEREIMPLEMENTEDACROSSRElNERIESOFTHE#ORPORATION
was lined up to conduct Mandatory Energy Audit (MEA) for six which resulted in energy savings of 82,078 SRFT, equivalent to
RElNERIES IN WHEREIN IMPLEMENTABLE SCHEMES WITH savings of `.135.3 crore. The details of some of the major ENCON
SAVING POTENTIAL OF 32&4YEAR WERE IDENTIlED OF WHICH 3CHEMESIMPLEMENTEDDURINGTHEYEARAREASUNDER
About the
Report
b The following initiatives/projects are under • LP Steam Generation from MP condensate in MS block, SDU
IMPLEMENTATIONINVARIOUSRElNERIESOFTHE 7(&5THROUGHAmASHVESSEL
Corporation:- • 2ECOVERYOFSTEAMCONDENSATELOSSINRElNERYCOMPLEX
Chairman’s Desk
'UWAHATI2ElNERY
0ANIPAT2ElNERY
From the
• 5TILIZATIONOFSUPERHEATED-03IN$#53REBOILERAFTERDE
• )MPROVE (23' EFlCIENCY BY REDUCING STACK TEMPERATURE BY
superheating
10 °C for HRSG 2/3/4/5
• 2ECOVERYOFSTEAMCONDENSATELOSTINRElNERYCOMPLEX
• Scheme for generating HP steam ex CCRU and routing it to
"ARAUNIRElNERY 02%(0HEADERAT!65
",
About IndianOil
• Stoppage of Gasoline splitter operation • 2OUTING OF (OT "&7 EX $($4 TO -5( OF (23'
• Commissioning of 0.5 MW Solar Plant through roof tops and instead of Deaerator.
solar trees • MP steam heating in place of HP in PR IFO heater (located
• !DDITIONALSUPPLEMENTARYlRINGIN(23'
in Merox unit)
Description of
• 4HERMAL%FlCIENCY)MPROVEMENTOFTHE$($4HEATER&
• Scheme for creating facility for use of MLP steam as stripping
BYMINIMIZINGHOTmUEGASDUCTLOSSES STEAMINPLACEOF-0STEAMIN,'/('/STRIPPERIN!65
Capitals
'UJARAT2ElNERY • Scheme for routing Hot VB Tar to DCU Feed
Board of
• #ONDENSATERECOVERYINTHERElNERYCOMPLEX • Installation of VFD/Destaging in HGU BFW pump
(ALDIA2ElNERY • In CDUs, feasibility of routing low pressure Fractionators O/H
• Maximization of steam generation by VBU economizer tube gas
RECTIlCATION • 3TEPLESSCAPACITYCONTROLSYSTEMFOR#252'#
+
!"
• %XCESSAIROPTIMIZATIONOFTHE(EATER
&
BYREPLACEMENT
Directors’
• 4HERMAL EFlCIENCY IMPROVEMENT OF (OT /IL (EATERS BY
Report
OF/!NALYZERBURNERSlNETUNINGREPLACEMENTOFBURNER augmentation of APH system
components
0ARADIP2ElNERY
Management’s
-ATHURA2ElNERY
• Destaging of HP & MP BFW export pumps
• Installation of Divided Wall Column in CCRU NSU to improve
separation & saving of energy • H2 recovery from sweet off gas of DHDT & VGO HDT through
CCR PSA
• Installation of LP steam generator in MCB pump around
Responsibility Report
circuit along with hot feed maximization to FCCU
c. Steps taken by the Company for Utilizing Alternate
• DHDS feed preheating up to 97°C by product rundown, thus Sources of Energy
Business
reducing the furnace duty
• The renewable energy portfolio of the Corporation includes grid
• %XCESS AIR OPTIMIZATION OF THE (EATER
&
!" BY CONNECTEDPOWERANDOFF
GRIDSOLARPOWER4HE#ORPORATIONIS
replacement of existing O2 Analyzer with TDLS type analyzer IMPLEMENTING mUORESCENT TUBE LIGHTS INCANDESCENT LAMPS Report on Corporate
• Power savings by replacing existing HT/LT motors with energy with LED lighting; for which procurement has been initiated
ATVARIOUSRElNERIES-ORETHAN,AKHS,%$SHAVEALREADY
Governance
EFlCIENTMOTORS
been installed as an ENCON initiative.
$IGBOI2ElNERY
• The Corporation has 12.68 MWP of solar PV across various
• Rationalization of Air Compressors
RElNERIES INSTALLATIONS AND OFlCE BUILDING WITH A TOTAL
• Optimization of Motive Steam in the Vacuum Column annual generation capacity of 19.4 million units. In addition,
Overhead Ejector System in VDU installation of Solar PV of different capacity is in progress at
Statements
VARIOUSRElNERIES
Financial
indJet technology, developed by R&D Centre of IndianOil and iv) Butane Isomerisation Technology
licensed jointly with EIL is under implementation at Barauni For production of Alkylate, “Butamer” Technology from M/s
RElNERYFORPRODUCTIONOFJETFUELFROMKEROSENEFEEDSTOCKBY
5/053!HASBEENIMPLEMENTEDAT0ARADIP2ElNERY
hydro desulphurisation.
v) Butene-1 Technology
vi) INDMAX Technology
&OR PRODUCTION OF "UTENE
4ECHNOLOGY FROM -S !XENS
).$-!8 TECHNOLOGY DEVELOPED IN
HOUSE BY 2$ #ENTRE OF
&RANCE HAS BEEN IMPLEMENTED AT 'UJARAT 2ElNERY AND AT
IndianOil for converting heavy distillate and residue into LPG/
Panipat complex.
light distillate products has been implemented successfully
AT 'UWAHATI 2ElNERY 0ARADIP 2ElNERY AND IS UNDER VI #ATALYTIC)SO
DEWAXING4ECHNOLOGYAT(ALDIA2ElNERY
IMPLEMENTATIONAT"ONGAIGAON2ElNERY
For improving lube oil quality in line with international
vii) indSelect Technology STANDARDSANDAUGMENTINGPRODUCTIONCAPABILITY)SO
DEWAXING
indSelect technology, developed by R&D Centre of IndianOil, technology from M/s MOBIL, USA has been implemented at
IS UNDER IMPLEMENTATION AT 'UWAHATI 2ElNERY FOR SELECTIVE (ALDIARElNERY
DI
OLElNSATURATIONOFCOKERNAPHTHAAND&##GASOLINE
60th Annual Report 2018-19 99
About the
Report
vii) Catalytic Reforming Technology xiii) Fluidised Catalytic Cracking Technology
For improvement in Octane number of Motor Spirit, Fluidised Catalytic Cracking (FCC) technology from M/s
Continuous Catalytic reforming technology (CCRU) from M/s UOP, USA has been implemented in Gujarat and Mathura
Chairman’s Desk
IFP (now Axens), France has been implemented at Mathura & RElNERIESFORCONVERSIONOF6ACUUM'AS/ILTO,0'-3AND
0ANIPATRElNERIES#ONTINUOUS#ATALYTICREFORMINGTECHNOLOGY Diesel. Technology from M/s ABB Lummus, USA has been
From the
from M/s UOP, USA has been implemented at Gujarat and IMPLEMENTEDFORREVAMPOF&##5AT-ATHURA2ElNERY
0ARADIP 2ElNERIES AND IS UNDER IMPLEMENTATION AT "ARAUNI
xiv) Hydrocracker Technology
2ElNERY#ATALYTICREFORMINGTECHNOLOGY#25 WITH2USSIAN
COLLABORATIONHASBEENIMPLEMENTEDAT'UJARATRElNERYAND Full Conversion Hydrocracking Unit (HCU) technologies from
from M/s IFP (now Axens) has been implemented at Haldia, M/s Chevron USA and M/s UOP USA have been implemented
About IndianOil
"ARAUNI$IGBOIAND"ONGAIGAONRElNERIES AT 'UJARAT 2ElNERY AND 0ANIPAT 2ElNERY RESPECTIVELY FOR
conversion of Vacuum Gas Oil to Jet fuel, Kerosene and
viii) Coker Gas Oil Hydrotreatment Technology
Diesel.
Coker Gas Oil Hydrotreatment Technology from M/s Axens,
XV (YDRO
lNISHING4ECHNOLOGYFORTREATMENTOF0ARAFlN
&RANCE IS UNDER IMPLEMENTATION AT (ALDIA 2ElNERY UNDER
DYIP project. Wax / Microcrystalline Wax Process technology from M/s. IFP
Description of
NOW !XENS &RANCE FOR HYDRO lNISHING OF PARAFlN WAX HAS
ix) Delayed Coker Technology
Capitals
BEENIMPLEMENTEDAT$IGBOIRElNERY
For bottom of the barrel upgradation, Delayed Coker
xvi) Hydrogen Generation Technology
technology from M/s ABB Lummus, USA has been
Board of
under Resid Upgradation Project and also implemented at 2ElNERY UNDER -3 1UALITY )MPROVEMENT 0ROJECT (YDROGEN
0ARADIP 2ElNERY AND IS UNDER IMPLEMENTATION AT (ALDIA generation technology obtained from M/s. Haldor Topsoe,
2ElNERYUNDER$ISTILLATE9IELD)MPROVEMENT$9)0 0ROJECT Denmark is in operation at Gujarat, Mathura, Haldia, Panipat
AND"ARAUNIRElNERIESANDHASBEENIMPLEMENTEDAT'UJARAT
x) Diesel Hydro Desulphurisation Technology
2ElNERYUNDER2ESID5PGRADATION0ROJECT3IMILARTECHNOLOGY
Diesel Hydro Desulphurisation (DHDS) Units have been from M/s KTI, the Netherlands has been implemented for
Directors’
Report
INSTALLED AT -ATHURA 0ANIPAT RElNERIES WITH TECHNOLOGY Hydrogen generation at Guwahati, Digboi, Mathura and
from M/s IFP (now Axens), France and at Gujarat & Haldia (ALDIA2ElNERIES(YDROGENGENERATIONTECHNOLOGYFROM-S
RElNERIES WITH TECHNOLOGY FROM -S 5/0 53! TO MEET THE Technip Benelux B.V, Netherlands has been implemented
Management’s
OF$($3AT-ATHURA2ElNERY
XVII )3/3)64ECHNOLOGYAT'UWAHATI2ElNERY
xi) Diesel Hydrotreatment Technology
For production of Isomerate for blending in MS at Guwahati
Diesel Hydrotreatment (DHDT) Units have been installed at 2ElNERY )3/3)6 TECHNOLOGY FROM -S 5/0 53! HAS BEEN
Responsibility Report
'UWAHATI "ARAUNI $IGBOI RElNERIES WITH THE TECHNOLOGY implemented.
from M/s UOP, USA and under implementation at Panipat
xviii) Kerosene Hydro Desulphurisation Technology
AND 'UJARAT 2ElNERIES 4ECHNOLOGY FROM -S !XENS &RANCE
Business
IS IMPLEMENTED AT -ATHURA 0ANIPAT AND 'UJARAT RElNERIES Kerosene Hydro Desulphurisation Unit has been installed at
Technology from M/s Shell Global Solutions, Netherlands is (ALDIA RElNERY WITH TECHNOLOGY FROM -S )&0 NOW !XENS
IMPLEMENTEDAT0ARADIP2ElNERY &RANCE+($3ISALSOBEINGIMPLEMENTEDAT0ANIPAT2ElNERY Report on Corporate
ASAPARTOF"3
6)PROJECT
xii) Divided Wall Column (DWC) Technology
xix) LPG Treatment Technology
Governance
-S+"253!ISUNDERIMPLEMENTATIONAT-ATHURA2ElNERY LPG Treatment technology from M/s UOP, USA has been
Financial
xx) MS quality Upgradation Technology xxviii) Solvent Dewaxing / De-oiling Technology at Digboi
For MS quality upgradation, Isomerisation technology of M/s )NORDERTOUPGRADETHEPROCESSFORPRODUCTIONOF0ARAFlN7AX
UOP, USA have been implemented at Mathura, Panipat and AT $IGBOI 2ElNERY 3OLVENT DEWAXINGDE
OILING TECHNOLOGY
'UJARAT2ElNERIES)SOMERISATION4ECHNOLOGYFROM-S!XENS from M/s UOP, USA has been implemented.
France has been implemented at Haldia, Guwahati, Digboi and
xxix) Spent Acid Regeneration Technology
"ARAUNIRElNERIES&##'ASOLINEDESULPHURIZATIONTECHNOLOGY
0RIME
' FROM-S!XENS&RANCEHASBEENIMPLEMENTEDAT In order to regenerate fresh sulphuric acid from spent
(ALDIA-ATHURA0ANIPATAND"ARAUNI2ElNERIESANDISUNDER sulphuric acid recovered from Alkylation Unit a Spent Acid
IMPLEMENTATIONAT"ONGAIGAONAND"ARAUNI2ElNERIES 2EGENERATION4ECHNOLOGYFROM-S-%#3-ONSANTO%NVIRO
Chem Systems), USA has been implemented at Paradip
xxi) MTBE Technology
2ElNERY
Technology from M/s CD Tech, USA has been implemented for
xxx) Sulphur Pelletization Technology
PRODUCTIONOF-4"%AT'UJARAT2ElNERY
For production of Sulphur in Pellet form, Technology from M/s
xxii) Naphtha Cracker and downstream petrochemical Technology
Sandvik, Germany has been implemented at Gujarat, Mathura
Naphtha Cracker Technology from M/s ABB Lummus, USA AND0ANIPAT2ElNERIES
HASBEENIMPLEMENTEDAT0ANIPAT2ElNERY4ECHNOLOGIESFROM
xxxi) Sulphur Recovery Technologies for reduction of SO2 emissions
M/s Basell, Italy, M/s Basell, Germany, M/s Nova Chemicals,
#ANADA3CIENTIlC$ESIGN53!HAVEBEENIMPLEMENTEDFOR 2ElNERIES AT 'UJARAT (ALDIA -ATHURA AND "ARAUNI ARE
DOWNSTREAM POLYMER PLANTS VIZ 0OLY
0ROPYLENE 5NIT ($0% provided with Sulphur Recovery Technology from M/s.
unit, Swing Unit (HDPE/LLDPE) and MEG Unit respectively. Stork Comprimo (now Jacob), Netherlands. The Sulphur
Technology from M/s ABB Lummus has been implemented for recovery technology from M/s. Delta Hudson, Canada
production of Butadiene. Technology from M/s Basell, Italy is HAS BEEN EMPLOYED AT 0ANIPAT RElNERY &URTHER 3ULPHUR
UNDER IMPLEMENTATION AT 0ARADIP 2ElNERY FOR PRODUCTION OF recovery technologies from M/s Black & Veatch Pritchard,
0OLY
0ROPYLENE4ECHNOLOGYFROM-S3CIENTIlC$ESIGN53! USA have been implemented at Panipat, Gujarat and
ISUNDERIMPLEMENTATIONAT0ARADIP2ElNERYFORPRODUCTIONOF 0ARADIP 2ElNERIES 4ECHNOLOGY FROM -S 4ECHNIP +4)
MEG. Ethylene Recovery Technology from M/s ABB Lummus. 3PAINHASBEENIMPLEMENTEDAT(ALDIA2ElNERYUNDER/NCE
through Hydrocracker Project. Technology from M/s Jacobs,
xxiii) Naphtha Treatment Technology
Netherlands has been implemented under additional Sulphur
FCC Naphtha Treatment Technology from M/s Mericam, 2ECOVERY 5NIT AT -ATHURA 2ElNERY 4ECHNOLOGY FROM -S
USA for removal of Mercaptans and H2S is implemented at Lurgi, Germany is under implementation under DYIP project
0ARADIP 2ElNERY 4ECHNOLOGY FOR .APHTHA (YDROTREATING AT(ALDIA2ElNERY4ECHNOLOGYFROM-S0ROSERNAT&RANCEIS
Fractionating from M/s UOP, USA is implemented at Paradip UNDERIMPLEMENTATIONAT0ANIPAT2ElNERY
RElNERY
xxxii) Technology for Linear Alkyl Benzene (LAB)
xxiv) Once Through Hydrocracking Technology
Technology from M/s UOP, USA has been implemented for
Once Through Hydrocracking Units (OHCU) have been PRODUCTIONOF,INEAR!LKYL"ENZENEAT'UJARAT2ElNERY
INSTALLEDAT0ANIPAT-ATHURAAND(ALDIARElNERIESWITHTHE
xxxiii) Technology for Para-Xylene
technologies from M/s UOP, USA, M/s Chevron, USA and M/s
Axens, France respectively for improvement of distillate yield. &ORPRODUCTIONOF0ARA
8YLENEAT0ANIPATTECHNOLOGIESFROM
M/s UOP, USA have been implemented.
xxv) Propylene Recovery Technology
XXXIV 4ECHNOLOGYFOR0URIlED4EREPHTHALIC!CID04!
For recovery of Propylene from LPG, propylene recovery from
-S"ASELL)TALYISUNDERIMPLEMENTATIONAT0ARADIP2ElNERY &OR PRODUCTION OF 04! AT 0ANIPAT 2ElNERY TECHNOLOGY FROM
M/s Dupont (now Invista), USA has been implemented.
xxvi) Regenerative type Flue Gas De-Sulphurisation Technology
xxxv) VGO Hydrotreatment Technology
)N ORDER TO RECOVER 3ULPHUR $I
/XIDE FROM "OILER mUE GASES
A 2EGENERATIVE TYPE &LUE GAS $E
3ULPHURISATION TECHNOLOGY Technology from M/s UOP has been implemented at Gujarat
from M/s Cansolv Technology Incorporate (CTI), Canada, has 2ElNERY UNDER 2ESID 5PGRADATION 0ROJECT 4ECHNOLOGY FROM
BEENIMPLEMENTEDAT0ARADIP2ElNERY -S!XENS&RANCEHASBEENIMPLEMENTEDATTHE6'/
4REATER
INSTALLEDAT0ARADIP2ElNERY
xxvii) Resid Fluidized Catalytic Cracking Technology
The Resid Fluidized Catalytic Cracking (RFCC) technology
from M/s Stone & Webster, USA (now part of Technip) has
BEENIMPLEMENTEDAT0ANIPAT(ALDIAAND"ARAUNI2ElNERIES
60th Annual Report 2018-19 101
About the
Report
C 4HE BENElTS DERIVED LIKE PRODUCT IMPROVEMENT The year of import:
cost reduction, product development or import Whether the technology been fully absorbed: The project is in
substitution: IMPLEMENTATIONSTAGE
%XPECTEDCOMMISSIONINGBY3EP
Chairman’s Desk
"ENElTSDERIVEDINCLUDE II "3
6)0ROJECTSAT'UJARATRElNERY
From the
• Upgradation of heavy oil to higher value products of improved The details of technology imported:
quality such as LPG, gas oil, motor spirit, kerosene, ATF, etc.
• Technology for desulphurisation of FCC Gasoline from
• Reduction of Sulphur content impurity in petroleum products
M/s Axens, France
( like LPG, Naphtha, MS, Kerosene, ATF, HSD etc.)
• Technology for desulphurisation of gas oils, from M/s
About IndianOil
• Feed Quality Improvement for subsequent processing
resulting in improved product pattern. UOP, USA
• Production of higher grade lubricant base stocks which help • Technology for Hydrogen Generation from HTAS,
in reducing import dependence. Denmark
Description of
• Reduction of Sulphur dioxide emissions Whether the technology been fully absorbed: The project is
INIMPLEMENTATIONSTAGE
%XPECTEDCOMMISSIONINGBY3EP
Capitals
• Value addition to surplus Naphtha by
2019
• Naphtha Cracking and subsequent high value products like
Glycols, Polymers, Butadiene, Benzene etc. III -ATHURA2ElNERY%XPANSIONAND2ESIDUE5PGRADATIONPROJECT
Board of
product
bed Hydrocracker unit, from M/s Chevron, USA
• Production of high value speciality products like MTBE, LAB,
• Technology for production of sulphur from M/s Prosernat,
Food Grade Hexane etc
France
• Production of products (like Styrene Butadiene Rubber and
"UTENE
WHICHAREIMPORTSUBSTITUTIONPRODUCTS • Technology for production of reformate through Catalytic
reforming unit from M/s Axens, France.
Directors’
• Production of sulphur in pellets form which is more
Report
environmental friendly and easier to handle The year of import: 2017-18
• Auto Fuel Quality improvement for HSD and MS so that these Whether the technology been fully absorbed: The project is
Management’s
pollution control norms. 2021.
• Use of a number of indigenous technologies resulting in IV "ARAUNI2ElNERY%XPANSIONPROJECT
import substitution
The details of technology imported:
d) Details of imported technology (imported during the
Responsibility Report
4ECHNOLOGYFORPROCESSING6ACUUMGASOILIN(YDROCRACKING
last three years reckoned from the beginning of the unit of sulphur from M/s Chevron, USA
lNANCIALYEAR
4ECHNOLOGY FOR PRODUCTION OF )SOMERATE THROUGH
Business
I "3
6)0ROJECTSAT0ANIPATRElNERY Isomerisation unit from M/s UOP, USA
The details of technology imported:
4ECHNOLOGYFORPRODUCTIONOFSULPHURFROM-S+4)TALY
Report on Corporate
4ECHNOLOGY FOR DESULPHURISATION OF GAS OILS FROM -S
4ECHNOLOGY FOR 0OLY 0ROPYLENE PRODUCTION -S #")
UOP, USA Novolen Technology
Governance
The year of import:
• Process and catalyst development for Petrochemicals &
Polymers application
Whether the technology been fully absorbed: The project is
INIMPLEMENTATIONSTAGE
%XPECTEDCOMMISSIONINGBY$EC
• Development of Intelligent and Caliper pigs for monitoring
2022 health of pipelines
4ECHNOLOGY FOR PRODUCTION OF 2EFORMATE AND )SOMERATE • #ATALYSTS DEVELOPMENT FOR RElNING AND PETROCHEMICAL
from M/s UOP, USA processes
Whether the technology been fully absorbed: The project is • "IOTECHNOLOGYINTERVENTIONSFORRElNERY%40BIOMETHANATION
INIMPLEMENTATIONSTAGE
%XPECTEDCOMMISSIONINGBY-AY
2G ethanol
2023 • Expenditure on R&D
About the
Report
MANAGEMENT’S DISCUSSION & ANALYSIS
Chairman’s Desk
1. MACROECONOMIC CONDITIONS & OUTLOOK growth of 9.1% in 2018-19 on top of 10% growth posted
From the
IN THE PREVIOUS lSCAL $ESPITE THIS '$0 GROWTH DURING
1.1. Global Economic Backdrop
the year was lower than 7.2% recorded in 2017-18. The
Global economic growth slowed down to 3.6% in 2018 from slippage in momentum was on account of deceleration in
3.8% recorded in 2017. There was a marked deceleration agriculture and services sectors and government spending.
in the growth of advanced economies mainly on account Besides, there was deceleration in growth of non-oil
IndianOil at a
a sizeable slippage in growth in Euro Area to 1.8% in imports, mainly capital goods and gold. In the last quarter
Glance
2018 from 2.4% in 2017 as growth slackened in key of 2018-19, the economy’s performance was subdued in
Euro Area economies like Germany, France & Italy. United particular; growth in the quarter fell to 5.8% on account
States was the only exception to the overall slackening of slowdown in industry sector and investment expenditure
growth momentum in the advanced economies, where a along with decline in output in the agriculture sector.
Description of
lSCALSTIMULUSTHROUGHTAXCUTSANDINCREASEINSPENDING
On the macroeconomic front, India posted a mixed
propelled demand. Growth in emerging economies also
Capitals
PERFORMANCE /N THE POSITIVE SIDE RETAIL INmATION
decelerated to 4.5% in 2018 from 4.8% in 2017, mainly
measured by CPI slowed down to 3.41%, its lowest level in
on account of slowdown in growth in developing Asia-
the last seven years. This was mainly on account of muted
China, India & Asean-5 (Indonesia, Malaysia, Philippines,
Board of
prompted RBI to usher in rate cuts. RBI reduced repo
(PMI).
rate by 75 basis points in 2018-19, taking it to 6.25%.
A number of developments marked the year that lie at the /N THE lSCAL FRONT )NDIAS lSCAL DElCIT DURING THE YEAR
core of the economic deceleration witnessed. Rising trade stood at 3.4% of GDP, missing the target (BE) of 3.3%.
PROTECTIONISM WAS THE lRST AND FOREMOST WITH THE 53
)NDIAS CURRENT ACCOUNT DElCIT WIDENED TO AN ESTIMATED
China’s trade tensions resulting in rising tariffs and higher 2.3% of GDP from 1.9% of GDP in 2017-18 on account
Directors’
trade policy uncertainty. Another, major shift witnessed of weakness in net service imports along with a larger
Report
during the year was normalisation of monetary policies in TRADEDElCIT/NTHEUPSIDENETFOREIGNDIRECTINVESTMENT
the larger advanced economies. During the year, European INmOWSATBILLIONIN
WEREHIGHERTHANTHE
Management’s
#OUNTRYSPECIlCFACTORSSUCHASCREDITTIGHTENINGIN#HINA such as rising oil prices, US-China trade war, rate hikes in
macroeconomic stress in Argentina and Turkey, disruptions the US and domestic concerns. Rupee depreciated against
to the auto sector in Germany, troubles in France and Italy THE 53 $OLLAR BY REmECTING THE WIDENING CURRENT
contributed to the slowing of growth momentum. ACCOUNTDElCITANDWEAKFOREIGNINVESTMENTmOWS
Responsibility Report
While growth in the current year is expected to dip further, Looking ahead, growth is expected to accelerate in
growth is expected to start picking-up in the coming THE CURRENT lSCAL 0OLICY RATE CUTS BY 2") CONTINUED
years. The rate hike pause by the Federal Reserve in improvement in banking sector health post-introduction
Business
2019 and shift to monetary accommodation by other of Insolvency & Bankruptcy Code, 2016, farmers income
major advanced economies to support growth along with support, etc., are expected to boost domestic demand.
lSCAL AND MONETARY STIMULUS IN #HINA ARE EXPECTED TO Report on Corporate
support growth. However, many downside risks such as
further escalation of trade tensions, Brexit, deterioration 2. INDUSTRY STRUCTURE & DEVELOPMENTS
Governance
About the
Report
2.1.1.4. Prices boosted oil prices along with support coming from
a weak dollar, adherence by OPEC and Russia to
$URINGTHEYEAR"RENTCRUDEOILPRICESAVERAGED
production cuts and crisis in Venezuela coupled with
PER BARREL BBL REGISTERING A SIGNIlCANT INCREASE OF
US sanctions on Venezuelan oil sector. On the other
Chairman’s Desk
BBL OR A GROWTH OVER /IL PRICES
hand, oil prices were pressured by concerns surrounding
MOVEDUNDERTHEINmUENCEOFOPPOSINGFORCES4HERE
global oversupply and US-China trade war and concerns
From the
imposition of sanctions on Iran by the United States
about weakening of the global economy
IndianOil at a
80
Glance
70
60
50
40
Description of
30
Capitals
20
10
0
Board of
Source: Platts
Directors’
(bcm), or 5.3%, in 2018, rising to 3,849 bcm, one of
Report
tight LNG market.
the fastest rates of growth since 1984. The demand was
driven by growing energy demand and substitution of coal. 2.1.3. Global Renewables Sector
Management’s
driven mainly by the US (78 bcm), supported by China
in the global energy mix over the long-term. Renewable
(43 bcm), Russia (23 bcm) and Iran (16 bcm). Gas now
generation capacity has been growing at 8-9% per annum
accounts for 8% of primary demand in China, becoming
in the recent years. The trend continued in 2018 as well,
the world’s largest natural gas importer in 2018, ahead of
with total renewable energy generation capacity reaching
Responsibility Report
Japan.
2,351 GW at the end of 2018, with annual increase of
Total gas production increased by 5.2% in 2018, one of 7.9%, bolstered by new additions from solar and wind
the strongest rates of growth for output for over 30 years. energy, which accounted for 84% of the growth. Solar
Business
3IGNIlCANTPRODUCTIONINCREASESWEREACHIEVEDINTHE53 energy continued to dominate, with a capacity increase of
(86 bcm, 11.5% y-o-y growth in 2018), and Australia (17 94 GW (+24%), followed by wind energy with an increase
bcm, 15.3% y-o-y growth in 2018) – supported by the of 49 GW (+10%). Hydropower capacity increased by 21 Report on Corporate
start of new LNG trains – and Russia (33.9 bcm, 5.3% GW (+2%) and bio-energy by 6 GW (+5%). Almost 30% of
y-o-y growth in 2018). OECD natural gas production grew global power capacity is now based on renewable energy.
Governance
energy.
'AS PRICES IN THE 53 AVERAGED PER MILLION METRIC
British thermal units (mmbtu) in 2018 compared to
106 Indian Oil Corporation Limited 2nd Integrated Annual Report
However, renewable energy deployment needs to grow increase by only a third. India and China will be the largest
even faster, to ensure that global climate objectives and sources of global energy growth. Natural gas demand in
Sustainable Development Goals can be achieved. primary energy mix is expected to increase by 2040 from
current level whereas share of coal and oil is projected to
2.1.4. Global Energy Outlook
decrease. Oil and gas together are projected to account
As per the latest energy outlooks, the global energy for the largest share of the energy mix across a range of
demand is projected to continue growing, driven by scenarios. Renewable energy is the fastest growing source
expansion in global output and prosperity. However, energy of energy, contributing half of the growth in global energy
EFlCIENCYINCREASESAREEXPECTEDTOMODERATETHEPACEOF supplies and becoming the largest source of power by
growth in the future. While global GDP is expected to more 2040.
than double by 2040, energy consumption is projected to
Eurasia
+108 Mtoe
North America
+69 Mtoe China
Europe +807 Mtoe
-246 Mtoe
Middle East
India Japan
+460 Mtoe
+982 Mtoe -48 Mtoe
About the
Report
2.2. Developments in the Indian Energy Sector • The Government approved revision of ethanol price
under the Ethanol-Blended Petrol Programme for
)NDIAN ENERGY SECTOR IS UNDERGOING A SIGNIlCANT CHANGE
supply to public sector oil marketing companies, June
THAT HAS REDElNED THE INDUSTRY OUTLOOK 3USTAINED
2018.
Chairman’s Desk
economic growth continues to drive energy demand in
India. The speed of energy demand growth in India has • Abu Dhabi National Oil Company (ADNOC) signed
From the
been way ahead of the global average. In the last decade, AN AGREEMENT TO PICK UP STAKE IN THE PLANNED 53
while global energy demand grew by 1.7% annually,
BILLIONRElNERY
CUM
PETROCHEMICALSPROJECTONTHE
India’s energy demand grew at 5.7% per annum. India’s West Coast of the country. Saudi Aramco and ADNOC
energy mix is dominated by fossil fuels, with coal being will together hold 50% stake, June 2018.
the leading energy source with 45% share, followed by • IndianOil, ONGC, GAIL, OIL and NRL signed a joint
IndianOil at a
oil at 25%. The share of gas is small at 6% as compared venture agreement for executing “Indradhanush,” the
to the global average of over 20%. India’s gas demand is North-East Natural Gas Pipeline Grid with connectivity
Glance
expected to grow rapidly in the near future. The oil and to the East-West Urja Ganga Gas Pipeline Project,
gas sector is among the eight core industries in India and July 2018.
PLAYS A MAJOR ROLE IN INmUENCING DECISION
MAKING FOR ALL • The Government approved a policy to permit
the other important sections of the economy. Renewable exploration and exploitation of unconventional
Description of
energy has a small but rapidly growing presence. HYDROCARBONSSUCHASSHALEOILGAS#OAL"ED-ETHANE
Capitals
3EVERALPOLICIESHAVEBEENADOPTEDTOFULlLTHECOUNTRYS (CBM) etc., August 2018.
future energy demand. 100% Foreign Direct Investment • India banned the import of petcoke for use as fuel,
(FDI) has been allowed in many segments of the sector, but allowed only for lime kiln, calcium carbide and
Board of
the year, particularly with reference to the areas in which • The Government launched Sustainable Alternative
the Corporation operates, were- Towards Affordable Transportation (SATAT) initiative
• BS-VI auto fuels were introduced in the National on 2nd October to promote Compressed Bio-Gas
Capital Territory (NCT) including Delhi, from 1st April production.
2018. The same was extended to cover 12 contiguous • On November 22nd, 2018, the Prime Minister of India
Directors’
districts, including key cities of Agra, Meerut and laid the foundation stone of City Gas Distribution
Report
Bharatpur, subsequently. (CGD) projects in 65 Geographical Areas (GAs) in 129
• To widen the reach of domestic LPG cylinders under districts under the 9th CGD bidding round. Bidding
Management’s
THE'OVERNMENTDIRECTEDTHATBENElCIARIESWOULDALSO
BEIDENTIlEDFROM"0,FAMILIESCOVEREDUNDER3#34 successful bidders have since been completed.
Antyodaya Anna Yojana (AAY) Pradhan Mantri Awas • The Government announced a policy for the rollout
Yojana (PMAY), forest dwellers, tea garden tribes, of electric vehicle-charging infrastructure, December
-OST"ACKWARD#LASSES-"#S ISLANDSRIVERISLANDS 2018.
Responsibility Report
under the Expanded Ujjwala Scheme w.e.f. 1.4.2018. • A consortium of Indian Oil Corporation (50% share),
Later, Below Poverty Line (BPL) families who have not Bharat Petroleum Corporation (25% Share) and
been covered under the Socio Economic and Caste
Business
Hindustan Petroleum Corporation (25% share)
Census 2011 (SECC) or under the above mentioned 7 was given authorisation by PNGRB for the 2,757
categories were also covered w.e.f. 20.12.2018. km cross-country Kandla-Gorakhpur LPG pipeline,
• The Government approved the National Policy on December 2018. Report on Corporate
Biofuels in May 2018. The policy expands the scope • The Government launched the National Clean Air
of raw material for ethanol production. Programme with an objective to reduce PM2.5 and
Governance
• )NDIA RECEIVED ITS lRST CRUDE OIL CARGO SHIPMENT PM10 concentration by 20-30% by the year 2024
from Abu Dhabi National Oil Company (ADNOC) (compared to 2017 levels), January 2019.
for its strategic petroleum reserve at Mangalore on • MoP&NG issues directions to companies to sell 10%
21.05.18. ethanol-blended petrol from April 2019. Before
• National Wind-Solar Hybrid Policy was released on this directive, subject to commercial viability, oil
Statements
14th May 2018. The policy seeks to promote new marketing companies were mandated to sell 5%
Financial
• The Government announced an outlay of ` 10,000 crore 5.1 MMT in petcoke consumption during the current year
for Phase 2 of the Faster Adoption and Manufacturing due to the restrictions for its use as a fuel.
of Hybrid and Electric Vehicles, or FAME 2 scheme,
MS consumption registered a growth of 8.1% in 2018-
to boost electric mobility and increase the number of
19 as compared to 10.1% growth rate in the previous
ELECTRICVEHICLESINCOMMERCIALmEETS-ARCH
year. HSD consumption recorded a growth of 3.0% in
Major policy decisions during the year were shaped 2018-19 compared to 6.6% growth in the previous year.
by environmental concerns, focus on renewable and Consumption growth rates of these products in 2018-19
alternatives, importance of natural gas in the energy were lower compared to the previous year due to slowdown
mix, and need for international cooperation and foreign in India’s automobile industry during 2018-19.
investment.
Domestic commercial vehicle sales increased by 17.6%
2.2.1. Oil Market - Domestic during the year compared to 20.0% growth rate in the
2.2.1.1.Demand Side previous year. Passenger cars sales increased by 2.1%
during the year compared to 3.3% growth rate in the
During 2018-19, petroleum product consumption was previous year. The biggest slowdown in domestic sales
211.6 MMT, registering a growth of 2.7% as against were observed in two and three-wheeler sales, which grew
consumption of 206.2 MMT and a growth rate of 5.9% by 4.9% and 10.3% compared to 14.8% and 24.2%
growth during 2017-18. This growth is despite a fall of growth rate respectively in the previous year.
20.0
17.6
14.8
11.5 10.9
7.9 7.9
5.1 6.9
4.1
3.9 3.3 2.1 4.9
3.0 1.1 10.3
-2.8 -4.9
Source: CMIE
The growth story of the civil aviation sector continued during the new connections were released, out of which 362.9 lakhs were
YEARWITHTRAFlCREGISTERINGDOUBLEDIGITGROWTH$URINGTHEYEAR released under PMUY. A total of 719 lakh connections have been
growth in ATF consumption soared to 9.1% as compared to the released under PMUY till 31.03.2019 since inception, taking the
previous year. penetration of LPG among households to over 94%.
LPG consumption too recorded a positive growth of 6.8% during 'ROWTHINHEAVYANDRESIDUALmUIDSLIKE&UEL/IL&/ ,OW
3ULPHUR
2018-19 after recording a growth of 8.0% in the previous year. Heavy Stock (LSHS) and Petcoke registered negative growth
LPG consumption grew at 8.9% CAGR during 2013-14 to 2018- during the year due to customers shifting to alternatives as well
19, making it one of the fastest growing fuel. The Government’s as due to environmental concerns. SKO consumption continued to
push to providing a clean fuel like LPG to the marginalised sections decline on account of reduced allocation to states and voluntary
of society through PMUY also drove up the demand. During 2018- SURRENDEROFQUOTABYFEWSTATES54S
19, 51.4 lakh double-bottle connections (DBCs) and 455.2 lakh
60th Annual Report 2018-19 109
About the
Report
Growth in Demand of Major Petroleum Products (POL) (%age)
11.8
Chairman’s Desk
10.6
9.1 8.1 8.6 9.1
From the
15.0 8.9
10.0 6.8 6.0
4.5 4.1 &/,3(3
3.0 2.7
5.0 0.8
SKO
0.0
LPG Naphtha MS ATF HSD TOTAL
IndianOil at a
-5.0
-3.2
Glance
-10.0
-15.0 CAGR (2013-14 to 2018-19)
2018-19: Growth (y-o-y) -10.1
-20.0
-13.6
-25.0 -20.0
Description of
Petcoke
Capitals
Source: PPAC, MoP&NG
2.2.1.2. Supply Side /N THE RElNING FRONT )NDIAS RElNING CAPACITY STOOD AT
Board of
RElNINGCAPACITY)NCREASINGDOMESTICDEMANDWASMETBY
WAS--4ASDECLININGPHASEOFMANYlELDSCONTINUED
INCREASEINRElNERYTHROUGHPUTDURING
$URINGTHEYEAR
)NDIGENOUSCRUDEOILANDCONDENSATEPRODUCTIONUNDER035lELDS
)NDIANRElNERSPROCESSED--4OFCRUDEOILASCOMPARED
DECREASEDBYDURINGTHEYEARWHEREASPRODUCTIONBYPRIVATE
to 251.9 MMT in 2017-18. During 2018-19, 75.4% high-sulphur
JVs in PSC regime decreased by 1.9% in 2018-19 than the crude
crudes were processed against 74.8% during 2017-18.
oil and condensate production during 2017-18. However, with
Government’s thrust on ramping up domestic production through
Directors’
Report
investment-friendly policies, improvement in production levels is
expected in the near future.
Responsibility Report
213.9 211.6
210.0 189.4 202.9 206.2 128.2
184.7 194.6 120.0
180.0 165.5 124.9 101.4
80.8 100.0
150.0
Business
73.9 80.0
120.0
90.0 60.0
65.5 66.8
63.9 60.5 61.1 40.0
60.0 37.5 36.9 36 36.3 35.7 35.5 34.2 32.5 Report on Corporate
30.0 21.3 29.5 20.0
0.0 0.0
Governance
70.0 50%
Product imports decreased to 32.5 MMT during the year from 35.5 60.0
40%
MMT in the previous year. However, product imports bill expanded 50.0
40.0 18.5 21.4 24.7 26.3 27.0 30%
FROM53BILLIONIN
TO53BILLION4HETOTAL
IMPORT BILL FOR THE YEAR AMOUNTED TO 53 BILLION FROM 30.0 20%
53 BILLION IN THE PREVIOUS YEAR %XPORT OF 0/, PRODUCTS 20.0 32.7 31.1 30.8 31.7 32.1
10.0 10%
reduced to 61.1 MMT in 2018-19 compared to 66.8 MMT in the
0.0 0%
previous year. In value terms, the total product exports amounted 2014-15 2015-16 2016-17 2017-18 2018-19
TO53BILLIONIN
ASCOMPAREDTO53BILLION
in 2017-18. Gross Production LNG Imports Share of LNG
(Right Axis)
2.2.1.3. Pricing & Subsidy Administration Source: PPAC, MoP&NG
About the
Report
Installed Capacity of Power Generation (356 GW) 3. Indian Energy Outlook
There is a broad consensus that India will lead global energy
Coal
demand growth over the long-term. The key propellers will
56.4%
Chairman’s Desk
be India’s prospering economy and growing population.
Across outlooks, a common thread is that India’s energy
From the
demand by 2040 will be more than double its present
demand. In the previous 23 years, it had grown by more
than threefolds. In India, coal is expected to continue
dominance in the future. Oil’s share is projected to fall
RES
marginally, but continue to be the second most important
(Renewable)
IndianOil at a
source. The share of gas in the Indian energy mix is set to
21.8% INCREASESIGNIlCANTLY4HESHAREOFRENEWABLEISSETTOGROW
Glance
manyfold, witnessing highest growth rates amongst energy
Hydro types across a range of scenarios.
Gas 12.7% While it is clear that India would need more energy as it
7.0% moves ahead, there are critical challenges that it faces
Description of
Diesel Nuclear in meeting its growing energy needs such as bridging
1.9%
Capitals
0.2% the energy divide and providing energy justice through
electricity and clean cooking fuel access to the marginalised
groups in the population; containing the deteriorating air
quality in major cities; meeting the Nationally Determined
Board of
To counter climate change and at the same time to reduce
dependence on fossil fuels, the Government of India has set a
target of 175 GW renewable power installed capacity by the end of
2022. This includes 60 GW from wind power, 100 GW from solar
4. IndianOil’s Strengths & Weaknesses
power, 10 GW from biomass power and 5 GW from small hydro IndianOil is one of the largest commercial enterprises
power. During 2018-19, 8.78 GW of renewable energy capacity in the country with a dominant presence in the Indian
Directors’
corporate and energy landscape.
was installed, taking the cumulative capacity to 79.57 GW. In
Report
terms of wind power installed capacity, India is globally placed 4HE lRST AND FOREMOST STRENGTH OF THE #ORPORATION IS ITS
at the 4th position after China, USA and Germany, and at the 5th infrastructure spread across the country. The Corporation
Management’s
India’s Installed Renewable Energy Capacity RElNING CAPACITY 4HE #ORPORATION HAS ADVANCED AND
Capacity Addition Installed Capacity COMPLEXRElNERIESCAPABLEOFPROCESSINGTYPESOFCRUDE
combinations. The Corporation accounts for over 49% of
in 2018-19 (as on 31.03.2019)
downstream marketing infrastructure in the country. Its
(in MW) (in GW)
Responsibility Report
wide network of pipelines, marketing infrastructure and
Wind Power 1481 35.6 spread in every nook and corner of the country marks its
unmatched outreach. A hallmark of its retail network is
Solar Power 6773 29.1 that it has made inroads into rural areas through the no-
Business
frills low-cost Kisan Seva Kendra (KSK) outlets.
Small Hydro 107 4.6
IndianOil is a household name and one of India’s most
Bio-Power 421 10.2 Report on Corporate
trusted national brands. This hard-earned brand equity is
(Biomass, Waste- a manifestation of the strong relationship the Corporation
to-Power etc.) with its customers. As the Corporation forges ahead
Governance
Total 8783 79.6 beyond its core business to Petrochemicals, natural gas
and biofuels, the value of Brand IndianOil will be a major
Source: Ministry of New & Renewable Energy, GoI plus.
The Corporation has been one of the early adopters
4HE )NDIAN POWER SECTOR IS UNDERGOING A SIGNIlCANT CHANGE THAT OF INTEGRATION AND DIVERSIlCATION DRIVE IN THE )NDIAN
downstream oil industry. The Corporation is a major
Statements
‘Power for all’ has accelerated capacity addition in the country, in player in petrochemicals business with ambitious ongoing
which renewable is playing a vital role. expansion plans. The petrochemicals business of the
112 Indian Oil Corporation Limited 2nd Integrated Annual Report
Corporation is a major value driver. Integration with Focus on research & development is a key source of growth
PETROCHEMICALS PROVIDES IT mEXIBILITY IN OPERATIONS TO for economies and companies. The Corporation has built a
align with demand. The Corporation is also diversifying large and strong Research & Development infrastructure.
into other areas, such as fertilisers. The Corporation has Its R&D centre, with focus on proprietary research in
formed a JV Company-Hindustan Urvarak & Rasayan Ltd. LUBRICANTSCATALYSTSRElNINGTECHNOLOGIESANDPIPELINES
(HURL) with the objective of establishing and operating OPERATIONS IS RECOGNISED AS ONE OF !SIAS lNEST )N THE
STATE
OF
THE
ARTENERGY
EFlCIENTNATURALGAS
BASEDFERTILISER AREAOFRElNINGTECHNOLOGYWHICHISDOMINATEDBYFOREIGN
complexes at Gorakhpur, Barauni and Sindri. technology suppliers, the Corporation has reached a stage
where a number of technologies developed by it are getting
IndianOil’s production from its upstream assets is on
commercialised.
the rise and its upstream integration ratio is presently
over 5%. 7HILE THE #ORPORATIONS CORE BUSINESS OF RElNING AND
marketing of petroleum products is inherently a low
The Corporation is growing its presence in the natural
MARGINBUSINESSITSFOCUSONOPERATIONALEFlCIENCYCOST
gas sector, with presence across the gas value chain in
OPTIMISATION INTEGRATION AND DIVERSIlCATION HAVE BEEN
India. It is the second biggest player in the R-LNG market
pivotal in ensuring its growth and competitiveness. Some
with massive plans to expand its gas infrastructure.
OF THE #ORPORATIONS RElNERIES ARE QUITE OLD AND HAVE
The Corporation has also been an early investor in the
small capacities, while these have been augmented and
renewable energy space, much ahead of its peers, and has
modernised from time to time; their sizes remain sub-
a growing portfolio.
OPTIMALINTHEPRESENTCONTEXT4HERElNINGCAPACITYOFTHE
Human capital is the backbone of any organisation. Corporation is spread out across the regions, necessitating
The Corporation has over 33,000 employees, who run crude movement to the hinterland and not always resulting
its country-wide and overseas operations. Armed with in optimisation of crude mix that can be handled. Also,
close to 7,000 millennials, the Corporation’s manpower in view of the mismatch between regional supply and
has strengths of both experience and youthful energy. demand, the associated infrastructure of logistics has to
The Corporation has a strong culture of learning and be created and continuously expanded. As the Corporation
development, which is being further enriched through expands into newer areas, building the requisite manpower
initiatives such as E-Learning, partnerships with academia, capability is a major issue that is being addressed. The
focus on women leadership etc. The robust HR policies Corporation’s petrochemicals production base is at present
and a culture of learning have ensured that the Corporation concentrated in the north of the country; with upcoming
has in-house expertise in all areas and the employees are PETROCHEMICALS PROJECTS AT ITS VARIOUS RElNERIES THIS
ABREASTOFTHELATESTDEVELOPMENTSINEACHlELD4HISHAS imbalance is getting addressed.
enabled the Corporation to adopt cutting-edge technologies
Opportunities, Challenges & Threats
in all areas of operations. The Corporation is recognised
as one of the most valued employers in the country with India is set to lead the global energy story for the next 20-
continuous benchmarking to international standards and YEARSANDASAmAGSHIPENERGYCOMPANYTHERECOULDNOT
a robust working model of HR facilitators, mentor-mentee HAVEBEENABETTERTIMEINTERMSOFTHESPECTRUMANDSCALE
development and e-learning, among others. OFOPPORTUNITIESAVAILABLEFOR)NDIAN/IL!TTHESAMETIME
IndianOil has a robust crude oil and product sourcing ITISNOTJUSTSIMPLEADDITIONORREPLICATIONTHATTHEGROWTH
infrastructure along with long-term contracts with national PATHWILLENSUREBUTRATHERAMOREEXCITINGGROWTHPHASE
oil companies. Within each region, the Corporation is DElNED BY INNOVATION SUSTAINABILITY AND ENTREPRENEURIAL
procuring crude oil from almost all the major oil suppliers SPIRIT
AND HAS A VERY WELL DIVERSIlED CRUDE SOURCING MIX 4HE
4.1. The Overall Context: Energy Growth & Energy Transition
Corporation has established a new re-engineered crude
procurement system for import of crude oil. New initiatives For the global economy, the overall context is set by
HAVEENABLEDASIGNIlCANTREDUCTIONINPRICEVALIDITYPERIOD the fact that the world needs more energy as the global
from 12 hours to 2 hours. A trading desk has also been set economy and population grow and countries become more
up to further leverage opportunities in the international and more urbanised. Along with this come the related and
market. highly critical aspects of future energy growth and the
The Corporation has automated all its operative retail inclusiveness and environmental sustainability aspects of
outlets and a majority of its terminals have been converted future energy growth as enshrined in the United Nations
into smart terminals. The Corporation recently become the Sustainable Development Goals (SDGs). Clean energy
lRSTPUBLICSECTORCOMPANYANDTHELARGESTINSTALLATIONIN access for all, climate action and addressing air pollution
India to migrate to SAP HANA technology. The Corporation are critical challenges for the future growth of energy.
has a strong IT infrastructure and e-tendering and
India is set to be at the forefront of the global energy
e-procurements portals and a digital platform for CRM,
demand growth as it is expected to continue being the
among other digital initiatives, have become a norm.
60th Annual Report 2018-19 113
About the
Report
fastest growing large economy over the long-term and to Within the broader ambit of challenges & opportunities that
become the most populated country by the middle of the the energy sector faces, the twin forces of technology and
next decade, and see a massive scale-up in urbanisation. policy are shaping a ‘transition’ wherein renewable energy,
The gamut of challenges relating to future energy demand STORAGETECHNOLOGYSHALEREVOLUTION,.'ELECTRIlCATION
Chairman’s Desk
growth at the global level is nowhere more relevant than in ADVANCEDBIO
FUELSDIGITALISATIONANDENERGYEFlCIENCYARE
India. REDElNINGHOWANDWHATTHESECTORPRODUCESANDSUPPLIES
From the
along with demand patterns and consumer expectations.
• India needs to bridge the energy divide and provide
India as a country and IndianOil as its leading energy
energy justice through electricity and clean cooking
corporate are exploring the multitude of opportunities the
fuel access to the marginalised groups in the
‘transition’ presents for a greener and enriched tomorrow.
population
IndianOil at a
• Contain the deteriorating air quality in major cities 4.2. IndianOil’s Strategic Approach
• Meet the Nationally Determined Contributions (NDCs)
Glance
The eight drivers of the Corporation’s strategy, which are
under the Paris Climate Agreement
working in conjunction in this vibrant and exciting phase
• Secure energy supplies in the face of high import
to deliver value to all the stakeholders are outlined as
dependence
under:-
Description of
Capitals
Alignment with Operational Continued
Board of
Fortifying Enhancing Building Strong Expanding
2ElNING Value Collaborations Global
Marketing Proposition & Partnerships Outreach
Directors’
Business through
Report
Integrated
Value Chains
Management’s
the demand for passenger cars in India. Passenger
Across scenarios and projections, India’s oil story
CAR STOCK IN )NDIA IS SET TO INCREASE lVE
FOLD IN THE
continues to be intact. India is set to lead global oil
next 20 years, while global car stock is expected
demand growth, growing at rates way faster than the overall
to double. Despite rising EV penetration and rising
global oil demand. India will be the single largest source of
Responsibility Report
VEHICULAREFlCIENCYTHESHEERMOMENTUMOFGROWTHIS
incremental global oil demand, across countries and much
set to keep oil demand from passenger cars growing
ahead of increment in Chinese oil demand between 2017
in India.
and 2040. Road freight, aviation and petrochemicals will
Business
Another major demand driver for oil demand is the rural
be the key propellers of India’s oil demand along with
economy. Rural energy consumption in India has been
passenger cars.
way below the urban levels and is also highly dominated
by usage of traditional bio-energy, which comes with its
Report on Corporate
• High economic growth, rising share of manufacturing
and a modal mix tilted in favour of road will drive oil own costs on health, time and overall well-being. The
demand in freight transportation. policy thrust on bridging the energy divide through free
Governance
• Indian aviation sector has been on a fast growth LPG connections- Pradhan Mantri Ujjwala Yojana, and
trajectory and is set to continue adding one of the RURAL ELECTRIlCATION SCHEME
3AUBHAGYA is bringing in a
highest number of incremental passengers over the paradigm shift. Further, as rural incomes and prosperity
next 15 years. rise, vehicle ownership is set to rise and propel rural
• Indian petrochemicals sector has been growing at transportation fuel demand.
rates much faster than the global rates and is set to
Statements
4HE#ORPORATIONHASPLANSINPLACETOEXPANDITSRElNING
Financial
capacity at existing locations and is also leading the #OMPETITION IS GETTING INCREASINGLY lERCER ACROSS FUEL
ambitious JV project on the west-coast in Maharashtra. In segments. Deregulation and shift towards market prices
addition, plans for concomitant investments in distribution HAS RAISED COMPETITION LEVELS SIGNIlCANTLY WITH ENTRY OF
and marketing infrastructure are afoot to cater to the private players in the domestic market. Competition has
growing demand. MADE )NDIAN/IL SHARPER AND BENElTTED THE CUSTOMERS IN
terms of price, quality and experience. The Corporation
For the rural markets, the Corporation has been a leader
aims to provide best-in-class services to its customers and
in making inroads through its strong network of no-frills
is constantly working on improving it through automation,
rural retail outlets - Kisan Seva Kendra. As a leading
digital interventions, technological support and new
implementing agency for Ujjwala, the Corporation is
business models, while growing its presence as the market
assiduously working to make marginalised rural population
and its expanse grow. Another major theme is to strengthen
adopt LPG as a cooking fuel. Growing LPG demand
the relationship with the customer at the retail outlets by
emanating from Ujjwala and other demand segments are
raising the bar of convenience. Enhancing the bouquet of
being met both through domestic production and imports.
non-fuel services and offerings to the customers through
The Corporation has been investing in building adequate
alliances and partnerships, will be an important thread of
LPG import and transportation infrastructure along with
the strategy to strengthen the customer relationship and
deployment of its in-house LPG maximisation technologies
maximising returns from the vast network.
such as INDMAX.
&ORTIFYING2ElNING-ARKETING"USINESS
About the
Report
Aligning with Transition: Total Fuel Solutions
Hydrogen
Chairman’s Desk
H-
From the
CN
lls
G
Ce
Au
CNG to-
el
LP
Fu
G
IndianOil at a
G
PN
Solar
Glance
Bio-fuels
Chargin
Description of
EV
MA
RP
Capitals
g
nd
OL
Wi
CB
G Fuels
Te Bat BS-VI
ch ter
no y
Board of
lo
gy
Other Cleaner Fuels
Another implication of the transition for downstream oil business and advanced bioenergy applications is a vista that the
Directors’
in India and elsewhere is the growing competition from newer and Corporation envisages for the future. The Corporation has
Report
cleaner fuels. In India, the policy thrust on greener options such been raising the percentage of ethanol-blending in petrol.
as Compressed Natural Gas (CNG), Piped Natural Gas (PNG), Besides investing in setting up of 2-G ethanol plants,
Management’s
oil are invigorating these forces. In the passenger transport fuel being worked upon.
segment, CNG is already a growing fuel in a number of cities and
• India has a potential to substitute about 30% of its
Electric mobility, LNG are emerging future options. In the cooking
current petroleum fuel demand with Compressed Biogas
space, PNG is already emerging as a major fuel in a growing
(CBG). The Government’s Sustainable Alternative Towards
Responsibility Report
number of Indian cities and in the industrial segment, electricity
Affordable Transportation (SATAT) scheme which targets
and gas are increasingly becoming popular options as regulatory
setting up of 5000 CBG plants over the next few years
pressure for clean fuels increases.
has given an impetus to this sector. The Corporation is one
Business
The Corporation, as a downstream player with a trusted and well of the leading partners in the programme and is working
accepted brand presence, has embraced a strategy of providing enthusiastically in realising the potential of a green, clean
total fuel solutions to its commercial customers. The future retail and rural economy-friendly fuel. Report on Corporate
outlets are also envisioned to be fuel solution centres where not
• Gas has been an integral part of the portfolio of global
ONLY PETROLDIESEL IS DISPENSED BUT ALSO HAS #.' WHICH ALREADY
oil majors and the Corporation has also been investing
Governance
than 20% of the country’s energy needs, mainly at the end Besides, plans are afoot to grow its LNG terminal capacity
of marginalised consumers. Transforming this to modern and gas pipeline infrastructure. The Corporation’s recently
116 Indian Oil Corporation Limited 2nd Integrated Annual Report
commissioned LNG import terminal in Ennore, Tamil 4.2.4. Operational Excellence with a Digital Future
.ADU IS THE COUNTRYS lRST ON THE EAST COAST AND MARKS
The Corporation’s downstream oil business faces
beginning of the Corporation making inroads in to the
continuing challenges in the form of low margins and is
erstwhile gas-deprived southern sector of the country. The
INmUENCEDBYMYRIADFACTORSRANGINGFROMmUCTUATIONSIN
Corporation has been working on creating avenues for gas
crude and product prices, crude and product inventory
demand and has been working on promoting LNG as a
levels, yield patterns, capacity utilisation, supply risks,
transportation fuel in the country.
geo-political uncertainty, and an array of product market
• The Corporation has been an early investor in wind and variables such as seasonality of demand, pricing and
solar power among Indian downstream companies. Further taxation, among others. In this context, the thrust of the
investments coupled with continued R&D in Hydrogen, Corporation has been to diversify its crude supply, using
fuel cells, waste-to-energy and bio-fuels are integral to its cheaper heavy crude varieties, making operations energy
downstream vision. ANDRESOURCEEFlCIENTANDAUTOMATINGITSPROCESSES
• Besides, the growth potential and global momentum for 4HE#ORPORATIONSQUESTFOREFlCIENTOPERATIONSISGETTING
the electric battery technologies has made it a compelling further emboldened by the ongoing digital revolution-
choice for many oil majors and IndianOil too is keen on the frontiers of technology armed by big data analytics,
entering in this space. ARTIlCIAL INTELLIGENCE !262 CLOUD COMPUTING BLOCK
chain, Internet of Things, etc. The Corporation has started
4.2.3. Enhancing Value Proposition through Integrated Value deploying these digital technologies and is exploring
Chains their applications in predictive maintenance, real-time
In the 1990s, in conjunction with the opening up of integrated data, drones for surveillance among others,
the Indian economy and seeing the value in integrated which can reduce costs, enhance productivity and increase
operations of the global oil majors, the Corporation set reliability and safety of operations.
off on its integration journey. The integration drive of the Another, value proposition of digitalisation is on the
Corporation has today become more relevant than ever. customer experience front of the downstream business.
The great collapse of oil prices in 2014-15 and the India has witnessed e-commerce, digital payments, shared
low oil prices in the last quarter of 2018 exhibited the mobility and changing market dynamics in a short span
merits of downstream integration for the global oil majors. OF TIME 4HE #ORPORATION HAS BEEN AMONG THE lRST TO
For the Corporation, with asset concentration in the adopt digital payment systems in India. The Corporation’s
downstream business, the endeavour has been to integrate automation drive and mobile applications have been
upstream business in its value chain. The Corporation has enhancing customer experience and satisfaction. Going
judiciously built an upstream portfolio consisting of assets ahead, digitalisation technologies such as big data and
in different stages of exploration, appraisal, development analytics will provide the Corporation with the much
and production within India and abroad. The Corporation needed agility to sense customer preferences.
is targeting a vertical integration ratio of 10% in the next
4.2.5. Building Strong Collaborations & Partnerships
DECADE BY ACQUIRING PRODUCINGNEAR
TERM PRODUCING
UNDER DEVELOPMENTDISCOVERED UPSTREAM ASSETS AND BY In today’s environment of fast-moving technological
PARTICIPATING IN THE )NDIAN AND INTERNATIONAL LICENCING changes, partnerships between government, private
bidding rounds and bidding for prospective exploratory and public sector enterprises, start-ups and technology
blocks, either alone or in consortium with experienced companies have become imperative across businesses.
)NDIANFOREIGN%0COMPANIES As the market place demands entry into new arenas and
The Corporation’s petrochemicals business has been uncharted territories, it is best to work in partnership and
CONTRIBUTING CLOSE TO OF ITS PROlTS WITH LESS THAN leverage the synergies between the partners.
4% share in its top-line. It is a major cushion to the The Corporation has forged alliances and is on a constant
#ORPORATIONS LOW
MARGIN RElNING BUSINESS 4HE HIGH
lookout for alliances based on synergistic value creation.
growth potential of petrochemicals in the Indian market,
These partnerships have enabled and are enabling our
coupled with the hedge it provides to cyclical performance
endeavours in areas such exploration & production,
and better returns, make it a compelling strategic choice
advanced bio-fuels, compressed biogas, petrochemicals,
FOR FUTURE INVESTMENTS 4HE #ORPORATIONS *6 RElNERY ON
gas infrastructure, electric mobility and many others.
the west coast will have an integrated petrochemicals
complex. Besides, three petrochemicals projects are under The Corporation views start-ups as an emerging force that
IMPLEMENTATIONATTHE#ORPORATIONS0ARADIP2ElNERYAND can drive innovation and competitive advantage. In line
a number of others are in the pipeline and would be spread with this, the Corporation has set up a start-up fund and is
ACROSSTHE#ORPORATIONSRElNERYNETWORK currently supporting 11 start-up ventures for innovative
60th Annual Report 2018-19 117
About the
Report
solutions in the energy space, especially using digital The Corporation understands that international
platforms, which will help in surveillance, automation, PARTNERSHIPSACQUISITIONSANDGEOGRAPHICALSPREADWOULD
EFlCIENCY IMPROVEMENT PROCESS IMPROVEMENT AND result in economies of scale and provide it with advantage
customer retention, among many others. to be competitive in the global arena. In particular, in
Chairman’s Desk
the upstream space, the Corporation is keen on strategic
In addition to this, as a Central Public Sector Enterprise, partnerships with leading International Oil Companies
From the
the Corporation shares values and responsibilities along .ATIONAL /IL #OMPANIES TO BRING MORE SYNERGY )NTENSE
with other CPSEs. The Corporation has been partnering competition in the upstream sector has favoured the
with other CPSEs for upstream oil & gas assets in global companies with strong networking and partnership
and domestic bidding rounds and acquisitions of cross- capabilities in the highly volatile upstream eco-system.
country gas pipelines, CGD networks and fertilisers,
IndianOil at a
among others. The Corporation is also keenly looking at In downstream business space, non-OECD economies will
avenues of collaboration with other CPSEs for collective be leading centres for oil demand growth as incomes and
Glance
growth and nation-building. prosperity rise. The Corporation is increasingly looking at
markets in SAARC, ASEAN, MENA regions and Africa to
4.2.6. Delivering Business Responsibly / Responsible Business scale up its global footprint and make inroads into the
The Corporation is committed to complying with all global markets to realise its vision.
Description of
environmental compliance norms and regulations in its 4.2.8. Continued Thrust on Research & Technology
operations and set new industry standards. The Corporation
Capitals
is persistently working in making its operations greener 4ECHNOLOGY IS DElNING THE PATH FORWARD FOR THE ENERGY
and reducing its carbon and water footprints. Recently, the sector and thrust on research is imperative today for any
Corporation has begun a plastic neutrality initiative under energy company. The Corporation has a well developed
Board of
4HE#ORPORATIONSRElNERIESAREBIGENERGYCONSUMERSAND a number of technologies developed by it are getting
ITHASBEENWORKINGINMAKINGTHESEMOREENERGYEFlCIENT COMMERCIALISED 7HILE RElNING AND LUBRICANT TECHNOLOGY
through various ENCON measures and other measures have been the focus since inception, the Corporation has
SUCHASINTEGRATIONOFSMALLERUNITSINOLDERRElNERIESINTO expanded the focus of its R&D investments to bio-energy,
SINGLEUNITSFOREFlCIENTENERGYUTILISATION#ONSEQUENTLY alternative energy, nano-technology and petrochemicals in
THE SPECIlC ENERGY CONSUMPTION OF ITS RElNERIES HAS LINEWITHITSSTRATEGYOFINTEGRATEDVALUECHAINSDIVERSIlED
Directors’
been consistently falling. Besides, the Corporation has businesses and also as a potent approach for deriving
Report
INCREASEDTHEUSAGEOFGASASAFUELINITSRElNERIESAND competitive advantage in the context of the ongoing energy
PLANS TO BRING ALL ITS RElNERIES TO OPERATE ON GAS AS THE transition.
Management’s
R&D will be on lubes, catalyst development & production,
While the Corporation has investments in overseas E&P RElNING TECHNOLOGY BIO
FUELS FUEL CELLS ENERGY STORAGE
assets and has its downstream subsidiaries in Sri Lanka, and renewable energy, among others.
5!%-AURITIUSITREALISESTHATSIGNIlCANTSTRIDESNEED
to be made for it to become A Globally Admired Company,
Responsibility Report
in line with its vision.
Business
Report on Corporate
Governance
Statements
Financial
Risks Ledger *
Risks on Radar
Electric mobility | Environmental risk | Cyber security | Tax disputes and litigation | Safety Risk: Loss of lives and assets
*Non-exhaustive list
60th Annual Report 2018-19 119
About the
Report
FINANCIAL REVIEW Pipelines throughput was also the highest with increase of 3.3%
over the previous year at 88.527 MMT. Domestic sales also
The Corporation continued its journey of excellent operational and
REGISTEREDTHEHIGHESTVOLUMESAT--4DURINGTHElNANCIAL
PHYSICAL PERFORMANCE IN THE lNANCIAL YEAR
SURPASSING
year 2018-19 as compared to 81.489 MMT in the previous year.
Chairman’s Desk
its previous performances in all respect. The crude oil throughput
Petrochemicals sales volumes were also higher at 2.636 MMT,
was at its highest ever at 71.816 MMT with the newest Paradip
registering a growth of 11% over the previous year.
From the
2ElNERYCAPACITYUTILISATIONAT
4HESTANDALONElNANCIALPERFORMANCEOFTHE#ORPORATIONISSUMMARIZEDBELOW
(` in Crore)
IndianOil at a
Particulars 2018-19 2017-18 Variation
Glance
Revenue from Operations 605,924 506,428 99,496
EBITDA 36,952 43,114 (6,162)
PBT 25,127 32,564 (7,437)
.ET0ROlT 16,894 21,346 (4,452)
Description of
#ASH0ROlT 24,408 28,413 (4,005)
Capitals
Borrowings 86,359 58,030 28,329
Board of
Petrochemicals 21,147 18,034 3,113
Other Businesses* 8,689 7,226 1,463
0ROlT"EFORE4AX3EGMENTWISE
Petroleum 22,166 27,602 (5,436)
Directors’
Report
Petrochemicals 4,198 5,226 (1,028)
Other Businesses* 370 408 (38)
Management’s
*Other Businesses comprises Sale of Gas, Explosives & Cryogenics; Wind & Solar Power Generation: and Oil & Gas Exploration
Activities.
Standalone Financial Performance year 2018-19 as compared to 8% and 37% in the previous year
Responsibility Report
The Revenue from Operations has grown by about 20% on account respectively. The Petrochemicals segment continues to earn
of increase in international prices as well as sales volumes. The higher margins in spite of fall in international spreads and impact
revenue in the Petroleum segment registered a growth of 20% and due to non-availability of some petrochemical plants. The margin
Business
that of the Petrochemicals segment by 17%. in the Petroleum segment is affected by the spread between the
international prices of petroleum products and crude oil, which
4HE%")4$!/PERATING0ROlTAND.ET0ROlTMARGINFORTHECURRENT
were low and volatile during the year 2018-19. The year witnessed
year are 6.99%, 4.97% and 3.19% as compared to 10.22%, Report on Corporate
volatility in crude oil prices as well.
7.74% and 5.06% in the previous year respectively. This is mainly
ONACCOUNTOFREDUCEDRElNINGMARGINSANDLOWERINVENTORYGAIN !TTHEBEGINNINGOFTHEYEARCRUDEOILPRICESWEREABOUTBBL
Governance
during the current year. The Return on Capital Employed is 18.10% WHICH WENT UP TO BBL AROUND /CTOBER AND TOUCHED A
as compared to 24.22% in the previous year and Return on Net LOWOFBBLIN*ANUARYBEFORECLOSINGBBL4HE(3$
Worth for the year 2018-19 is lower at 18.35% as compared to CRACKSDECREASEDFROMABOUT
BBLTOBBLDURINGTHE
24.66% in the previous year. YEAR3IMILARLY-3CRACKSWHICHWEREABOUT
BBLBECAME
NEGATIVEINTHEMONTHOF*ANUARY&EBRUARY4HEQUARTER
WISE
The EBITDA margin for the Petroleum segment is about 5%
MOVEMENTINRElNINGMARGINSAREEXPLAINEDASBELOW
Statements
AND FOR THE 0ETROCHEMICAL SEGMENT IT IS IN THE lNANCIAL
Financial
120 Indian Oil Corporation Limited 2nd Integrated Annual Report
9.1
9.0
7.0 7.0
6.6 6.8
6.0 6.1
5.2 5.1
5.0 5.9
4.2 4.1
3.2
3.0
3.0
1.2
1.0
Q4 17-18 Q1 18-19 Q2 18-19 Q3 18-19 Q4 18-19
About the
Report
Auditors for their comments on Internal Control Systems before the TO7ORK&OR’ in India in a study conducted by Great Place to Work
Financial Statements are placed before them for recommending to Institute and The Economic Times.
the Board for approval.
IR CLIMATE
Chairman’s Desk
HUMAN RESOURCES
The industrial relations climate in the Corporation has traditionally
From the
IndianOil has always assigned very high importance towards been harmonious. A collaborative and seamless IR climate has
developing its human resources with focus on its core values of been maintained in the Corporation so that IndianOil People are
#ARE)NNOVATION0ASSION and 4RUST. The HR systems and practices ready for the challenges faced by the Corporation due to changes
of the Corporation focus on diversity and inclusion in all initiatives in business environment, technology, competition, regulations,
to build a cohesive workforce. The challenges surrounding the etc. This has been made possible by sharing the changes in
IndianOil at a
present business scenario can be best mitigated by a workforce that business environment, consequent changes required in strategy
is motivated, adaptive to change, innovative and fast in learning. and business models of the Corporation, resultant impact on
Glance
Learning forms an integral part of the growth and enrichment of current business and people along with future plans with the
the workforce. With focus on aligning various HR initiatives with collectives and inviting suggestions, views from them through
Strategic Corporate Vision, many new initiatives were undertaken periodic structured communication meetings with the collectives.
aimed at making the employees ‘future-ready’. An enabling The management and the collectives have mutual respect for each
Description of
environment has been created for employees to enhance their other’s perspectives and regular structured meetings are held to
domain knowledge and thus, maintain their expertise in respective discuss and deliberate on issues like productivity, welfare and
Capitals
areas. Integrated HR practices through focussed recruitment, the need to build a responsive and responsible organisation. The
career path, learning and development have contributed towards collectives have always steadfastly supported the management in
maintaining the future-readiness of the workforce. HR Facilitator overcoming any external challenges faced by the Corporation. The
Board of
the employees through a single-window concept. executives.
The Corporation has adopted innovative learning & development OTHER INFORMATION
interventions like Competency-based Learning apart from the
regular programmes for upgrading functional skills for developing The details regarding the Corporation’s CSR programmes,
its human resources. Initiatives such as e-Learning were environment protection & conservation initiatives, technology
introduced during the year and avenues for higher education absorption & adoption efforts, forays into renewable energy and
Directors’
foreign exchange conservation, etc., are provided in the Directors’
Report
have been provided to employees in collaboration with reputed
management and technical institutes of the country. The Report and annexure thereto.
Corporation has a structured and robust succession planning
Management’s
pipeline. IndianOil has not only groomed several visionary leaders The information and Statements in the Management’s Discussion
who have led & transformed the Corporation over the years but also & Analysis regarding the objectives, expectations or anticipations
proved to be a nursery for grooming leaders for both public and may be forward looking within the meaning of applicable securities,
private sectors. laws and regulations. The actual results may differ materially from
the expectations. The various critical factors that could influence
THEEXPECTATIONS4HEVARIOUSCRITICALFACTORSTHATCOULDINmUENCE
Responsibility Report
The employees of IndianOil are passionate about their responsibility
the operations of the Corporation include global and domestic
towards the society at large. The engagement and motivation of the
demand and supply conditions affecting selling price of products,
employees is always benchmarked with national and international
input availability and prices, changes in Government regulations/
INPUTAVAILABILITYANDPRICESCHANGESIN'OVERNMENTREGULATIONS
Business
standards. IndianOil has been adjudged the Best Human Resource
tax laws, economic developments within the country and factors
Management Company of the Year by the Federation of Indian
such as litigation and industrial relations.
Petroleum Industry (FIPI) and is amongst the ‘4OP#OMPANIES
Report on Corporate
Governance
Statements
Financial
122 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
8. List three key products/services that the Company manufactures/provides (as in balance sheet):
Petroleum products (petrol, diesel, kerosene, lubricants etc), Petrochemicals & Gas
9. Total number of locations where business activity is undertaken by the Company:
Chairman’s Desk
i. Number of international locations (as on March 31, 2019):
From the
The Company undertakes overseas business activities through its subsidiaries in Mauritius, Sri Lanka, UAE, Sweden, USA,
4HE.ETHERLANDSAND3INGAPORE4HE#OMPANYHASALSOOPENEDBRANCHOFlCESIN-YANMAR"ANGLADESH
In addition, the Company is engaged in exploration and production (E&P) of crude oil and natural gas in USA, Venezuela,
Canada, Russia, UAE, Oman, Libya, Gabon, Nigeria & Israel.
About IndianOil
ii. Number of national locations (as on March 31, 2019):
Locations Numbers
/PERATING2ElNERIES 9
Oil Depots & Terminals 125
Aviation Fuelling Stations
Description of
LPG Bottling Plants 91
Capitals
Lube Blending Plants 10
R&D Centre 1
Board of
Kisan Seva Kendra (Rural Petrol/Diesel Stations) 7,857
LPG Distributors (including distributorships under Rajiv Gandhi Gramin LPG Vitarak Yojana)
SKO/LDO Dealers 3,889
Consumer Pumps
Explosives Plants 11
Directors’
Report
Cryogenics Plant 1
Petrochemical Plants 5
Management’s
Solar Power Plants: On-grid 4
E&P Location 1
LNG Terminal 1
Responsibility Report
10. Markets served by the Company – Local/State/National/International:
Local, State, National & International
Business
SECTION-B : FINANCIAL DETAILS OF THE COMPANY
1. Paid-up capital (INR) : `CRORE
2. Revenue from operations (inclusive of excise duty & sales services) : `CRORE Report on Corporate
SECTION-D : BR INFORMATION
1. Details of Director responsible for BR:
a) Details of the Director responsible for implementation of the BR policy/policies:
Director name: Mr. G. K. Satish
DIN:
Designation: Director (Planning & Business Development)
About the
Report
2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Yes/No):
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Do you have policy/policies for Principle # Yes Yes Yes Yes Yes Yes Yes Yes Yes
Chairman’s Desk
Has the policy been formulated in consultation Yes Yes Yes Yes Yes Yes Yes Yes Yes
with the relevant stakeholders?
From the
Does the policy conform to any national/ IndianOil has framed various policies, which conform to different applicable
international standards? If yes, specify? (50 statutes/guidelines/rules/policies, etc., issued by the Government of India
words) from time to time. Industry practices, national/international standards are
kept in view while formulating the policies.
About IndianOil
Has the policy been approved by the Board? The policies are approved by the Board/Competent Authorities as per the
If yes, has it been signed by MD/owner/CEO/ approved Delegation of Authority.
appropriate Board Director?
$OESTHE#OMPANYHAVEASPECIlEDCOMMITTEE Yes. The details are provided under the respective principles.
OF THE "OARD$IRECTOR/FlCIAL TO OVERSEE THE
implementation of the policy?
Description of
Indicate the link for the policy to be viewed The details of the links are given below#.
Capitals
online?
Has the policy been formally communicated to Yes Yes Yes Yes Yes Yes Yes Yes Yes
all relevant internal and external stakeholders?
Board of
mechanism related to the policy/policies to
address stakeholders’ grievances related to
the policy/policies?
Has the company carried out independent The policies are not audited/evaluated by external agencies. However, the
audit/evaluation of the working of this policy policies are formulated within the ambit of various statutory guidelines and
by an internal or external agency? business requirement, which are amended from time to time.
Directors’
Report
# Policies / rules of the Company along with their web links are given below:
Management’s
Code of conduct for prevention of Insider Trading HTTPSIOCLCOMDOWNLOAD)/#?)NSIDER?4RADING?#ODE?PDF
https://iocl.com/download/IOC_Insider_Trading_Code_2015.pdf
Whistle-Blower Policy HTTPSIOCLCOM)NVESTOR#ENTER7HISTLE?"LOWER?POLICYPDF
https://iocl.com/InvestorCenter/Whistle_Blower_policy.pdf
Sustainability & Corporate Social Responsibility Policy HTTPSWWWIOCLCOM!BOUT5S)/#?3#32?0OLICY??PDF
https://www.iocl.com/AboutUs/IOC_S&CSR_Policy_07_2015.pdf
Policy on Related Party Transactions HTTPSWWWIOCLCOM)NVESTOR#ENTER0OLICY?ON?2ELATED?0ARTY?
https://www.iocl.com/InvestorCenter/Policy_on_Related_Party_
Responsibility Report
Transactions.pdf
Transactions.pdf
Policy for
Policy for determining
determining Material
Material Subsidiaries
Subsidiaries HTTPSWWWIOCLCOM)NVESTOR#ENTER0OLICY?ON?-ATERIAL?
https://www.iocl.com/InvestorCenter/Policy_on_Material_
Subsidiary.pdf
Subsidiary.pdf
Business
Policy for
Policy for determination
determination ofof material
material // price
price sensitive
sensitive HTTPSIOCLCOMDOWNLOAD0OLICY?ON?-ATERIALITY?OF?EVENTS?OR?
https://iocl.com/download/Policy_on_Materiality_of_events_or_
information and disclosure obligations
information and disclosure obligations INFORMATION?REVPDF
information_rev.pdf
Dividend Distribution
Dividend Distribution Policy
Policy HTTPSIOCLCOMDOWNLOAD$IVIDEND
$ISTRIBUTION
0OLICY
https://iocl.com/download/Dividend-Distribution-Policy-1-12-16.
Report on Corporate
pdf
pdf
Policy for
for Preservation
Preservation of
of Documents
Documents HTTPSIOCLCOMDOWNLOAD0OLICY?ON?PRESERVATION?OF?DOCUMENTS
Governance
Policy https://iocl.com/download/Policy_on_preservation_of_documents.
pdf
pdf
Citizens Charter
Citizens Charter https://www.iocl.com/Talktous/CitizensCharter.aspx
https://www.iocl.com/Talktous/CitizensCharter.aspx
Statements
Financial
126 Indian Oil Corporation Limited 2nd Integrated Annual Report
2a. If answer to S. No.1 against any principle, is ‘No’, please explain why: (Tick upto 2 options)
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The Company has not understood the Principles
4HE#OMPANYISNOTATASTAGEWHEREITlNDSITSELFINAPOSITION
TOFORMULATEANDIMPLEMENTTHEPOLICIESONSPECIlEDPRINCIPLES
4HE #OMPANY DOES NOT HAVE lNANCIAL OR MANPOWER RESOURCES
Not Applicable
available for the task
)TISPLANNEDTOBEDONEWITHINNEXTMONTHS
It is planned to be done within the next 1 year
Any other reason (please specify)
3. Governance related to BR
a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assess the BR performance of
the Company: Within 3 months, 3-6 months, Annually, More than 1 year
The principles of BR are integral to the day-to-day operations of the Company and the Company’s BR performance is
reviewed by the Board / Committees of the Board as and when required.
b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it
is published?
IndianOil publishes Corporate Sustainability Report as well as the Business Responsibility Report annually. The Sustainability
Report for the year 2018-19 can be accessed at the following link: https://www.iocl.com/sustainability/home.aspx. The BRR
forms a part of the Annual Report.
About the
Report
(OWMANYSTAKEHOLDERCOMPLAINTSHAVEBEENRECEIVEDINTHEPASTlNANCIALYEARANDWHATPERCENTAGEWASSATISFACTORILYRESOLVED
by the management? If so, provide details thereof, in about 50 words or so.
Chairman’s Desk
received resolved
Related to 10,248 9,822 Complaints received directly as well as through
From the
services, tenders Public Grievance portal, Government of India.
Shareholder’s 100% These are investor complaints forwarded by MCA /
Complaints SEBI / Stock Exchanges as well as those directly
raised with the company.
About IndianOil
Related to 99.97% Summary of Customer / Consumer complaints
consumers / received and resolved
customers
Dept. Complaints Complaints
received resolved
Retail Sales
LPG
Description of
Lubes
Capitals
Institutional 31 31
Business
Petrochemicals 122 122
Board of
Related to 11 11 100% All complaints received under IP were tabled
Integrity Pact before the panel of IEMs for deliberation
(IP) and recommendation. Compliance to IEM
recommendations was carried out by the concerned
Functional Groups / Departments and apprised to
IEMs subsequently.
Directors’
Report
Discussion & Analysis
PRINCIPLE-2 : BUSINESSES SHOULD PROVIDE GOODS AND SERVICES THAT ARE SAFE AND CONTRIBUTE TO SUSTAINABILITY
Management’s
THROUGHOUT THEIR LIFE CYCLE.
IndianOil has grown from being an oil major to an integrated oil & gas corporate in India. Oil & gas shall remain the fuels of choice
in the foreseeable future, while renewables grow in relevance owing to impending climate change and global warming concerns.
(ENCEWHILE)NDIAN/ILPURSUESDIVERSIlCATIONINTONATURALGASANDRENEWABLEENERGYTHE#OMPANYISALSOPUTTINGALOTOFEMPHASIS
Responsibility Report
on better and safer petroleum products.
Some of the recent/major product upgradations include offer of BS-VI grade fuels, improved ethanol / bio-diesel blending in vehicular
fuels, offer of value-added fuels like XtraPremium, supply of LPG cylinders to rural areas, undertaking various renewable energy
Business
projects and promotion of natural gas as vehicular fuel/cooking fuel in cities.
IndianOil is also making its processes and business activities safer and sustainable through various initiatives such as energy
EFlCIENCYWATERCONSERVATIONRENEWABLEENERGYTREEPLANTATIONBUFFERZONECREATION ANDIMPROVEDWASTEMANAGEMENT Report on Corporate
are trained on product use, and procedures are in place to meet any untoward natural disaster/accident. These contribute to safer
WORKAREASANDIMPROVEDCOMMUNITYCONlDENCE
Statements
Financial
128 Indian Oil Corporation Limited 2nd Integrated Annual Report
Principle-2 : Questions
1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or
opportunities.
!S AN INTEGRATED ENERGY MAJOR )NDIAN/IL HAS BEEN CONTINUOUSLY IMPROVING ITS PRODUCT OFFERINGS BY FOCUSSING ON EFlCIENCY
IMPROVEMENTS)NDIAN/ILBALANCESITSPRODUCTSSOTHATTHEYMATCHUPTOCUSTOMERREQUIREMENTSFORQUALITYEFlCIENTANDLOW
emission fuels and maintain wide-scale availability and affordability. While all the Company’s product offerings are designed
KEEPINGINMINDSOCIALCONCERNSREQUIREMENTSTHEFOLLOWINGPRODUCTSSERVICESARESPECIlCALLYDESIGNEDKEEPINGINMINDTHE
environmental concerns:
i. BS-VI grade Petrol/Diesel
ii. LPG connections to below poverty lines (BPL) families
iii. Sale of Ethanol-Blended Petrol
iv. Synthetic Lubes
v. Natural Gas
vi. Renewable Energy
vii. Packaging Material in Lubes
viii. EV Charging Stations at Retail Outlets
2. For each such product, provide the following details in respect of resource use (energy, water, raw material, etc.,) per unit of
product (optional)
• Reduction during sourcing/production/distribution achieved since the previous year throughout the value chain?
• Reduction during usage by consumers (energy, water) has been achieved since the previous year?
a. BS-VI grade Petrol/Diesel
IndianOil has commenced offering BS-VI grade fuel in 12 districts in National Capital Region and Agra. This superior fuel
OFFERSTOREDUCE3/XEMISSIONSSIGNIlCANTLYASCOMPAREDTOPREVIOUSGRADESOFFUEL
b. LPG connections under Pradhan Mantri Ujjawala Yojana to BPL families
5NDERTHEmAGSHIPSCHEMEOFTHE'OVTOF)NDIAIEPradhan Mantri Ujjwala Yojana, IndianOil has released over 3.34 crore
,0'CONNECTIONSTO"0,FAMILIESSINCEITSLAUNCHIN-AY4HEOBJECTIVEOFTHESCHEMEISTOPROVIDECLEANCOOKING
fuel to the BPL families to eliminate use of biomass like agricultural residue, wood, cow-dung, etc. The clean fuel has
helped in eliminating domestic pollution and thus, improving the health of women from BPL families.
c. Sale of Ethanol-Blended Petrol
During 2018-19, IndianOil blended 82 crore litres of ethanol with petrol for sale as Ethanol-Blended Motor Spirit. The
sale of EBMS not only results in savings in foreign exchange and reducing import dependency but is also an environment-
friendly initiative. The blending of ethanol also helps in increasing the income of farmers.
d. Synthetic Lubes (Extended life of products and reduction of production material use):
For example, Servo Futura G Plus engine oil launched by IndianOil offers 2% fuel savings.
e. Natural Gas
IndianOil has commissioned Ennore LNG Terminal near Chennai. This would help to create accessibility to cleaner natural
gas for customers in the southern part of India.
f. Renewable Energy
• #UMULATIVELY)NDIAN/ILHASINSTALLED-7OF2ENEWABLE%NERGY7INDAND3OLAR
• During the year 2018-19, IndianOil generated 388 GWh of energy from these renewable energy sources. Total GHG
emission reduction was 3.18 lakh tonnes of CO2 equivalent.
g. Reduction in lubes packaging material:
• IndianOil replaced procurement of additives in steel barrels with bulk tank-trucks. By procuring additives in bulk, the
Company has avoided scrapping of 5 barrels each weighing 110 kg for every 1000 kg of additive procurement. Till
date, 7000 tonnes of additives procurement has been converted to bulk, resulting in reduction of 850 tonnes of metal
scrap.
60th Annual Report 2018-19 129
About the
Report
• By switching to 0.90 mm thickness barrels from 1.00 mm thickness barrels for packing of lubes, the Company is
estimated to reduce 900 tonnes of metal scraps annually.
• IndianOil has redesigned its HDPE containers used for packing of lubes to be sold in retail. The weight of the container
Chairman’s Desk
has been reduced by 10-15% over existing packs, which would lead to a reduction of 400 tonnes of HDPE scrap
annually.
From the
h. EV Charging Stations at Retail Outlets:
IndianOil has put up pilot EV charging facilities at select retail outlets. This initiative will help in reducing carbon footprint
of consumers by encouraging more EVs on the road.
About IndianOil
3. Does the Company have procedures in place for sustainable sourcing (including transportation)?
i) If yes, what percentage of your inputs was sourced sustainably? Also provide details thereof in about 50 words or so.
Crude oil is the single major input for the company. As most of IndianOil’s crude oil requirement is imported, many
considerations such as trade terms, geo-political ties, transport distance, type of crude oil, etc., have an impact on the
imports. A major portion of IndianOil’s crude oil is imported from the middle-east, resulting in much less freight travel and
related emissions. IndianOil is also using about 10% of indigenous crude oil in its input mix. The crude oil is transported
Description of
THROUGHEFlCIENTPIPELINENETWORKSTORElNERIES!LSOFORMEETINGITSREQUIREMENTSFOROTHERINPUTMATERIALS)NDIAN/ILIS
Capitals
focussing more on local sourcing, which is covered in greater detail in next question.
4. Has the Company taken any steps to procure goods and services from local & small producers, including communities surrounding
their place of work? If yes, what steps have been taken to improve the capacity and capability of local and small vendors?
Board of
DURINGTHEYEAR
WASPERCENTlGUREEXCLUDESPROCUREMENTOFCRUDEOILPETROLEUMPRODUCTSNATURALGAS
As many of the smaller vendors do not have suitable manpower / experience, they are trained vide various Government
programmes. Corporate interface is provided to these vendors so that they become acquainted with Company requirements.
Local workers from nearby communities are provided on-the-job skill training. They are then employed through local contractors.
Some of IndianOil’s interventions in this area are given as under:-
Directors’
• Local & small producers are encouraged by providing skill improvement through trial orders.
Report
• Structured meeting for registration of MSE vendors in Trade Receivables Discounting System and Government e-market
place were conducted.
Management’s
15 programmes exclusively for SC/ST vendors.
• In retail business, IndianOil procured low-cost technology and solutions from start-ups.
5. Does the Company have a mechanism to recycle products and waste? If yes, what is the percentage of recycling of products and
waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
Responsibility Report
IndianOil makes continuous efforts to reuse/recycle the waste generated wherever possible across its operations. The waste that
is not recycled in operations is disposed off as per the CPCB and SPCB norms.
Business
7ASTEWATERGENERATEDFROMRElNERIESISTREATEDIN%FmUENT4REATMENT0LANTS%40 4HETREATEDWATERISREUSEDASMAKEUPWATER
INCOOLINGTOWERSlREWATERHEADERSANDHORTICULTUREETC$URING
THERElNERIESHAVERECYCLEDAPPROXIMATELYOF
waste water. Report on Corporate
3OMESPECIlCINITIATIVESUNDERTAKENARELISTEDASUNDER
Governance
• Oily sludge from tank bottoms and ETP basins are processed in Sludge Processing Unit for oil recovery. The oil thus
recovered is routed to slop oil, which is further processed to produce products like gas oil. The residual sludge generated
from the process is further bio-remediated with the help of ‘Oilivorous-S’ technology of IndianOil’s R&D. 100% of the slop
oil and oily sludge generated is recycled.
• Mechanised OWS (Oil Water Separators) are used in plants to separate oil and water. Oil is reclaimed and recycled and water
SAMPLESAREMONITOREDTOENSURECOMPLIANCEWITHEFmUENTSTANDARDSBEFOREDISCHARGINGTHEMOUTSIDETHEINSTALLATIONS
Statements
Financial
• Collection of waste lube oil for processing and extending its useful life is underway. An engine oil has been developed for
agriculture use and has been tested in the market as Servo Pumpset Oil 40.
130 Indian Oil Corporation Limited 2nd Integrated Annual Report
• $ISPOSALOFHAZARDOUSWASTETHROUGHCERTIlEDVENDORSENSURESTHATTHEMOSTENVIRONMENT
FRIENDLYPROCESSESAREADOPTED
• The Company has also undertaken waste paper recycling initiative, and the locations have partnered with third-party
recyclers.
• All recyclables are sold to designated recyclers.
About the
Report
7. Please indicate the number of complaints relating to child labor, forced labor, involuntary labor, sexual harassment in the last
lNANCIALYEARANDPENDINGASONTHEENDOFTHElNANCIALYEAR
Chairman’s Desk
2018-19 on 31.3.2019
1 Child labour/ forced labour / involuntary labour Nil Nil
From the
2 Sexual harassment 05
3 Discriminatory employment Nil Nil
8. What percentage of your under-mentioned employees were given safety & skill up-gradation training in the last year?
About IndianOil
Sr. No. Category % of employees given safety & skill up-gradation
training during 2018-19
1 Permanent Male employees 73.97%
2 Permanent Women Employees
3 Permanent Employees with Disability
4 Casual/Temporary/Contractual Employees/Contract labour 79.04%
Description of
PRINCIPLE 4 : BUSINESSES SHOULD RESPECT THE INTERESTS OF, AND BE RESPONSIVE, TOWARDS ALL STAKEHOLDERS,
Capitals
ESPECIALLY THOSE WHO ARE DISADVANTAGED, VULNERABLE AND MARGINALISED
IndianOil values its stakeholders and continuously engages them through various fora throughout the year. These fora are aimed
to understand stakeholders’ opinions and to build trust and long-term relationships by way of structured collaborations and
Board of
DEEPER INSIGHTS INTO THE EXPECTATIONS OF THE STAKEHOLDERS &OR THE BENElT OF THE DISADVANTAGED VULNERABLE AND MARGINALISED
external stakeholders, IndianOil undertakes various CSR initiatives across India, which include projects under thrust areas of ‘Safe
drinking water and protection of water resources’, ‘Healthcare and sanitation’, ‘Education and employment-enhancing vocational
skills’, ‘Empowerment of women and socially/economically backward groups’, etc. The key aim is to improve the quality of life
of communities, which invariably include marginalised or under-privileged section of society, viz., SCs, STs, PHs, OBCs, etc. For
engagement of disadvantaged, vulnerable and marginalized external business stakeholders, various initiatives, viz., allotment of
Directors’
dealership/distributorship, petty contracts, etc. are undertaken.
Report
At the apex level, a Board Committee on Stakeholders’ Relationship has been constituted which examines and redresses grievances
of the stakeholders. Further, the Company has also constituted a Corporate Social Responsibility and Sustainable Development
Management’s
Principle-4 : Questions
1. Has the Company mapped its internal and external stakeholders? Yes/No
Yes, the Company has mapped its internal and external stakeholders
Responsibility Report
/UTOFTHEABOVEHASTHE#OMPANYIDENTIlEDTHEDISADVANTAGEDVULNERABLEMARGINALIZEDSTAKEHOLDERS
9ES4HE#OMPANYHASIDENTIlEDTHEDISADVANTAGEDVULNERABLEANDMARGINALIZEDSTAKEHOLDERS
Business
3. Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalised
stakeholders. If so, provide details thereof, in about 50 words or so.
IndianOil follows the presidential directives and guidelines issued by the Government of India regarding reservation in services Report on Corporate
for SC/ST/OBC/PwD (Persons with Disabilities)/Ex-servicemen to promote inclusive growth.
There is also a 33% reservation for women entrepreneurs in award of Kisan Seva Kendra dealerships. This initiative has not only
Governance
enabled in motivating women entrepreneurs to take up business activities but has also helped in making them independent and
contribute positively to society.
Statements
Financial
132 Indian Oil Corporation Limited 2nd Integrated Annual Report
PRINCIPLE 6 : BUSINESS SHOULD RESPECT, PROTECT, AND MAKE EFFORTS TO RESTORE THE ENVIRONMENT
IndianOil is committed to conducting its business responsibly and makes continuous efforts to mitigate the environmental impact of
its operations. There are three major areas relating to environment sustainability in which IndianOil operates, namely carbon footprint
reduction, water management/footprint reduction and waste management/footprint reduction.
For undertaking initiatives to protect and restore the environment, the Company is guided by its Sustainability & CSR Policy and the
Health, Safety & Environment Policy. These initiatives commence with monitoring and assessment of the Company’s carbon / water /
waste footprint, other harmful emissions and effluent profile. Specific external audits are conducted to arrive at measures to reduce
WASTEFOOTPRINTOTHERHARMFULEMISSIONSANDEFmUENTPROlLE3PECIlCEXTERNALAUDITSARECONDUCTEDTOARRIVEATMEASURESTOREDUCE
energy consumption, water consumption and waste generation.
To reduce the impact of the Company’s operations and product offerings on the environment, various initiatives pertaining to
energy efficiency, renewable energy, improved product efficiency, tree plantation, green buildings, water conservation, supply chain
ENERGYEFlCIENCYRENEWABLEENERGYIMPROVEDPRODUCTEFlCIENCYTREEPLANTATIONGREENBUILDINGSWATERCONSERVATIONSUPPLYCHAIN
efficiency, etc., are undertaken. Further details on the Company’s initiatives and their benefits can be obtained from the Annual
EFlCIENCYETCAREUNDERTAKEN&URTHERDETAILSONTHE#OMPANYSINITIATIVESANDTHEIRBENElTSCANBEOBTAINEDFROMTHE!NNUAL
Sustainability Report (accessible at: http://www.iocl.com/Aboutus/sustainability.aspx).
While a Board-level Committee guides and monitors the initiatives related to Sustainability & CSR, the ‘Alternative Energy &
Sustainable Development’ Group, formed at the corporate level, implements action plans to address the environmental issues, viz.,
climate change, global warming, etc.
60th Annual Report 2018-19 133
About the
Report
Principle-6 : Questions
1. Does the policy related to Principle 6 cover only the Company or extends to the Group/Joint Ventures/Suppliers/Contractors/
1.
NGOs/others.
Chairman’s Desk
The policy on Health, Safety and Environment covers the Company only.
From the
2. Does the Company have strategies/initiatives to address global environmental issues such as climate change, global warming,
2.
etc? Y/N. If yes, please give hyperlink for webpage, etc.
Yes, IndianOil undertakes various initiatives to measure/mitigate its impact on climate change. Further details on these initiatives
can be accessed at http://www.iocl.com/Aboutus/sustainability.aspx.
About IndianOil
3. Does the Company identify and assess potential environmental risks? Yes/No
3.
9ESTHE#OMPANYIDENTIlESANDASSESSESPOTENTIALENVIRONMENTALRISKS
Yes, the Company identifies and assesses potential environmental risks.
4. Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words
4.
ORSO!LSOIF9ES7HETHERANYENVIRONMENTALCOMPLIANCEREPORTISlLED
or so. Also, if Yes, Whether any environmental compliance report is filed?
)NDIAN/ILHASREGISTERED#$-PROJECTS(OWEVERDUETOLOW#%2PRICESTHEREGISTRATIONOFALL#$-PROJECTSWITH5NITED
IndianOil has 6 registered CDM projects. However, due to low CER prices, the registration of all 6 CDM projects with United
Description of
Nations Framework Convention on Climate Change (UNFCCC) has been temporarily discontinued.
Capitals
Has
5. (ASTHE#OMPANYUNDERTAKENANYOTHERINITIATIVESON
CLEANTECHNOLOGYENERGYEFlCIENCYRENEWABLEENERGYETC9.)FYES
the Company undertaken any other initiatives on - clean technology, energy efficiency, renewable energy, etc. Y/N. If yes,
please give hyperlink for web page etc.
Board of
•
• https://www.iocl.com/AboutUs/Environment.aspx
!RETHEEMISSIONSWASTEGENERATEDBYTHECOMPANYWITHINTHEPERMISSIBLELIMITSGIVENBY#0#"30#"FORTHElNANCIALYEAR
being reported?
9ES4HEEMISSIONSWASTEGENERATEDBYTHE#OMPANYAREWITHINTHEPERMISSIBLELIMITSGIVENBY#0#"30#"FORTHElNANCIALYEAR
2018-19.
Directors’
Report
7. Number of showcause/legal notices received from CPCB/SPCB which are pending (i.e., not resolved to satisfaction) as on end
OFlNANCIALYEAR
Management’s
• !COMPLAINTWASlLEDBYTHE3ARPANCH'RAM0ANCHAYAT3INGHPURA3ITHNA0ANIPATBEFORETHE.ATIONAL'REEN4RIBUNAL
.'4 ALLEGINGTHATTHE0ANIPAT2ElNERY0ETROCHEMICALS#OMPLEX020# OF)NDIAN/ILISCREATINGAIRANDWATERPOLLUTION
Subsequently, a Showcause/Legal notice was issued by NGT and Haryana State Pollution Control Board (HSPCB). The
#OMPANYSRESPONSEINTHEMATTERHASBEENlLEDANDISBEINGFOLLOWEDUPWITH.'4AND(30#"FORlNALRESOLUTION
Responsibility Report
• NGT had issued notice on provision of Vapour Recovery Systems (VRS) at Terminals/Depots and Retail Outlets in National
Capital Territory (NCT) and National Capital Region (NCR). Work on installation of VRS in NCT and NCR is in progress as
PERTIMELINESlXEDBYTHE(ONBLE3UPREME#OURTOF)NDIA
Business
• ! CASE WAS lLED BY 3HRI 3ANT $ASGANU -AHARAJ 3HETKARI 3ANGH !KOLNER IN .OV FOR CONTAMINATION OF GROUNDWATER
caused due to leakage of products from petroleum storage tanks and pipelines installed by IndianOil (Akolner (Ahmednagar)
Depot) & BPCL. All the directions given by NGT have already been complied with by IndianOil & BPCL. NIH Roorkee was
Report on Corporate
APPOINTEDBY-0#"TOSTUDYANDGIVETHEIRlNDINGSINTHEMATTER.)(2OORKEESUBMITTEDTHEIRREPORTSTATINGTHATTHEREWAS
NOLEAKAGEFROMTHEDEPOTSOFOILCOMPANIES"ASEDONTHEREPORT)NDIAN/ILHASlLEDAPPEALSBEFORETHE3UPREME#OURT
and the matter is pending before the Supreme Court.
Governance
PRINCIPLE 7 : BUSINESSES, WHEN ENGAGED IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD DO SO IN A
RESPONSIBLE MANNER
IndianOil understands its responsibility to function within the democratic set up and the constitutional framework. It recognises that
BUSINESSESOPERATEWITHINTHESPECIlEDLEGISLATIVEANDPOLICYFRAMEWORKSPRESCRIBEDBYTHE'OVERNMENTWHICHGUIDETHEIRGROWTH
and also provide for certain desirable restrictions and boundaries. It actively participates with various Committees of the Govt. of
Statements
India and other organisations for advancement and improvement of public good. IndianOil also supports United Nations’ Global
Financial
Compact (UNGC) for implementing the guiding principles in the United Nation’s agenda such as human rights, labour standards,
134 Indian Oil Corporation Limited 2nd Integrated Annual Report
environment, anti-corruption, etc. IndianOil believes that policy advocacy must preserve and expand public good and thus shall never
ADVOCATEANYPOLICYCHANGETOBENElTITSELFALONEBUTALWAYSFORTHEBENElTOFSOCIETYATLARGE
Principle-7 : Questions
1. Is your Company a member of any trade and chamber or association? If yes, name only those major ones that your business deals
with:
2. Have you advocated / lobbied through the above associations for the advancement or improvement of public good? Yes/No; If yes,
specify the broad areas (Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy Security,
Water, Food Security, Sustainable Business Principles, Others)
IndianOil works with professional bodies, both national and international, and participates in various policy formulations and
other industry-related issues. Being a public sector enterprise run under the aegis of the Government of India, all the meetings
of related ministries are attended to and an in-depth analysis is carried out to decide the course of action. IndianOil is also a
member of different committees of the Government of India and contributes to the advancement and improvement of public
good by actively participating in discussions related to Energy Security, Sustainable Business Principles, Economic Reforms,
etc.
About the
Report
The CSR
The projects of IndianOil
CSR projects are mostly
of IndianOil are undertaken for improving
mostly undertaken the qualitythe
for improving of life of communities,
quality which invariably
of life of communities, whichinclude marginalised
invariably include
or under-privileged
marginalised sections of society,
or under-privileged viz., SCs,
sections STs, PHs,
of society, OBCs,
viz., SCs,etc.
STs,With
PHs,pan-India
OBCs, presence,
etc. With depending
pan-India on requirement,
presence, IndianOil
depending on
undertakes CSR
requirement, activities
IndianOil in all partCSR
undertakes of the country.
activities inAsallper
partthe
of Board-approved
the country. As perSustainability & CSR policy,
the Board-approved projects are
Sustainability undertaken
& CSR policy,
in variousare
projects thrust areas, viz.,
undertaken in drinking water, areas,
various thrust healthcare, sanitation,
viz., drinking education,
water, environment
healthcare, protection,
sanitation, empowerment
education, environmentof women and
protection,
Chairman’s Desk
other marginalised
empowerment groups
of women etc.,
and with
other focus on welfare
marginalised groupsofetc.,
the economically
with focus on and socially
welfare deprived
of the sections
economically andofsocially
society.deprived
IndianOil strives
sections
to society.
of involve all relevantstrives
IndianOil stakeholders throughout
to involve thestakeholders
all relevant life cycle of throughout
the project the
for equitable
life cycle growth.
of the project for equitable growth.
From the
The details of CSR initiatives taken up by IndianOil have been incorporated as a separate section forming a part of the Annual Report.
Details can also be accessed at https://iocl.com/AboutUs/corporatesocialresponsibility.aspx.
Principle-8 : Questions
About IndianOil
1. $OESTHE#OMPANYHAVESPECIlEDPROGRAMMESINITIATIVESPROJECTSINPURSUITOFTHEPOLICYRELATEDTO0RINCIPLE)FYESDETAILS
Does the Company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details
thereof.
Yes, the Company has specified programmes in pursuit of its Sustainability & CSR Policy. The details of key CSR initiatives
9ESTHE#OMPANYHASSPECIlEDPROGRAMMESINPURSUITOFITS3USTAINABILITY#320OLICY4HEDETAILSOFKEY#32INITIATIVES
undertaken are provided in the CSR Report annexed to the Directors’ Report.
2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other
2.
Description of
organisation?
Capitals
The CSR activities are implemented mostly through either: a) IndianOil’s in-house resources or b) Government agencies.
3. Have you done any impact assessment of your initiative?
3.
Board of
lakh/year at a single location, Impact Assessment is carried out once in every 3 years.
4. What is your Company’s direct contribution to community development projects-Amount in INR and the details of the projects
4.
undertaken?
The total expenditure towards CSR initiatives of the Company for the year 2018-19 was Rs. 490.6 crore, which corresponds to
4HETOTALEXPENDITURETOWARDS#32INITIATIVESOFTHE#OMPANYFORTHEYEAR
WAS2SCROREWHICHCORRESPONDSTO
100% utilisation of the allocated budget. The details of key CSR initiatives undertaken are provided in the CSR Report annexed
Directors’
to the Directors’ Report.
Report
5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please
5.
explain in 50 words, or so.
Management’s
with the local/relevant stakeholders and on the basis of need assessment. In order to ensure project ownership and sustainability,
sometimes, beneficiaries also contribute part of the cost of the project. Also, during and after implementation, consultations
SOMETIMESBENElCIARIESALSOCONTRIBUTEPARTOFTHECOSTOFTHEPROJECT!LSODURINGANDAFTERIMPLEMENTATIONCONSULTATIONS
are held with the stakeholders for understanding their concerns. Involvement of local communities all through the project cycle
ensures ownership and successful O&M of the facilities/infrastructure provided under CSR, after handing over by IndianOil.
Responsibility Report
BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR CUSTOMERS AND CONSUMERS IN A
PRINCIPLE-9 : BUSINESSES
RESPONSIBLE MANNER
IndianOil has a comprehensive system to engage with its customers and ensure necessary product improvements.
Business
•• Information on the Company’s product and service offerings has been provided on the Company’s website.
•• Grievance redressal-related information is provided as part of the Citizens Charter (https://www.iocl.com/Talktous/CitizensCharter. Report on Corporate
aspx).
•• Customer feedbacks are taken through dedicated surveys (refer to Principle-9: Question no. 4 below), feedback/complaint
Governance
registers maintained at the Company’s retail touch points, dedicated customer portals such as e-Platform for IndianOil Customers
(ePIC) (https://cx.indianoil.in/webcenter/portal/Customer), Twitter handle/Facebook page of Ministry and IndianOil, along with
various engagement mechanisms for the Company’s bulk consumers.
•• It is also ensured that the complaints get resolved within timelines and necessary communication is provided through a
transparent mechanism.
Statements
•• Various awareness exercises/training programmes are undertaken for customers/bulk product consumers on safety and efficient
6ARIOUSAWARENESSEXERCISESTRAININGPROGRAMMESAREUNDERTAKENFORCUSTOMERSBULKPRODUCTCONSUMERSONSAFETYANDEFlCIENT
Financial
use of products.
136 Indian Oil Corporation Limited 2nd Integrated Annual Report
• 3OMESPECIlCINTERVENTIONSUNDERTAKENBY)NDIAN/ILTOTAILOR
MAKETHEPRODUCTSERVICEOFFERINGSTOCUSTOMERREQUIREMENTARE
given as under:
IndianOil introduced Mobile Dispenser for fuelling of stationery equipments at approved customer premises only, thereby
providing doorstep delivery of product (HSD) to such customers.
The Company has embarked on a Retail Transformation Project “Dhruva” with a vision to provide standardised facilities
and services to the customers. This is done through professional training, streamlined guidelines, and reward & recognition
mechanism.
/PTIONFORCUSTOMERTOBOOK,0'RElLLONLINEANDMAKEPAYMENTTHROUGHVARIOUSMODESLIKEE
WALLETONLINEETC
Offer of value-added technical services such as Total Lubrication Management (TLM) to large institutional clients
Institutional Business Portal for bulk customers
IndianOil Aviation works shoulder to shoulder with various Government agencies, Defence Forces and Airlines to provide
relief and rescue operations during natural calamities.
Principle-9 : Questions
7HATPERCENTAGEOFCUSTOMERCOMPLAINTSCONSUMERCASESISPENDINGASONTHEENDOFlNANCIALYEAR
Refer to Principle-1: Question no. 2 for details on customer complaints. Total 193 pending as on 31.3.2019 from amongst the
CUSTOMERCOMPLAINTSRECEIVEDDURINGTHEYEAR
^
2. Does the Company display product information on the product label, over and above what is mandated as per local laws? Yes/
No/N.A./Remarks (additional information).
All commercial products of IndianOil follow Bureau of Indian Standards (BIS) guidelines for product information and labelling,
details of which are given below:
• LPG: Domestic LPG Cylinders are exempted. All commercial products follow BIS guidelines for product information and
labelling. In case of LPG, Cylinders, Pressure Regulators & Valves conform to BIS Standards, which are displayed on the
equipment. The Distributors are also under instruction to sell LPG rubber hose and hot plates conforming to BIS Standards.
• Bitumen is mostly sold in bulk in liquid form and only about 10% of the product is sold in packed form in barrel wherein
PRODUCTNAMEISONLYMAINTAINED)TISENSUREDTHATPRODUCTSPECIlCATIONSAREMADEAVAILABLETOTHECONSUMERANDTHE
highest quality control & safety procedures are followed while marketing these products.
• Lubricants: All lubricant products display product information besides complying with Legal Metrology requirements for the
BENElTOFCUSTOMERSREGARDINGTECHNICALSPECIlCATIONSANDRECOMMENDEDUSEOFTHEPRODUCTBEINGMARKETED
• Cryo-containers: Safe handling methods, including dos & don’ts, are being sent along with every Cryo-Container.
• Petrochemicals:#ERTIlCATIONOF!NALYSISDEPICTINGALLQUALITYPARAMETERSISATTACHEDWITHEACHCONSIGNMENT0RODUCTTEST
report is sent to customers with every dispatch.
)STHEREANYCASElLEDBYANYSTAKEHOLDERAGAINSTTHE#OMPANYREGARDINGUNFAIRTRADEPRACTICESIRRESPONSIBLEADVERTISINGANDORANTI
COMPETITIVEBEHAVIOURDURINGTHELASTlVEYEARSANDPENDINGASONENDOFlNANCIALYEAR)FSOPROVIDEDETAILSTHEREOFINABOUT
words or so.
As on 31.3.2019, 4 cases were pending before the Hon’ble Courts. Brief of the cases is as under:
I .ORTH
%AST$EALERS!SSOCIATIONHADlLEDACOMPLAINTBEFORE#OMPETITION#OMMISSIONOF)NDIA##) ALLEGINGTHAT0UBLIC3ECTOR
Oil Marketing Companies (OMCs) are using unfair terms and conditions in the Dealership Agreement and misusing their dominant
position. CCI vide order dated 11.02.2014 dismissed the said application for want of merit and substance. Against the said
ORDER.ORTH
%AST$EALERS!SSOCIATIONlLEDAPPEALBEFORE#OMPETITION!PPELLATE4RIBUNAL#/-0!4 4HE#/-0!4VIDEORDER
DATEDSETASIDETHEORDEROF##)AGAINSTWHICH##)HASlLED3,0BEFORETHE(ONBLE3UPREME#OURT4HE(ONBLE
3UPREME#OURTADMITTEDTHEAPPEALONANDSTAYEDTHEOPERATIONOFORDERPASSEDBY#/-0!4ON4HE
CASEISPENDINGFORTHElNALHEARING
ii. OMCs received notices dated 22.04.2013 from the Director General of CCI requesting information on various modalities of MS
pricing as CCI had suo moto started investigation into the prices of MS and asked why OMCs increased and decreased prices
simultaneously and by similar amounts. OMCs challenged the action of CCI submitting that PNGRB had jurisdiction and not
##)4HE##)REJECTEDTHECONTENTIONOF/-#SVIDEORDERDATED)NDIAN/ILHASlLEDA7RIT0ETITION70 BEFORETHE
60th Annual Report 2018-19 137
About the
Report
Hon’ble High Court of Delhi against CCI’s Order dated 23.10.2013. The matter is pending in the Delhi High Court as the court
HASSTAYEDTHEORDEROF##)TILLFURTHERORDERSANDTHENEXTDATEOFHEARINGISlXEDON
III ,0'4RANSPORTERSHAVElLEDACOMPLAINTBEFORETHE##)PRAYINGFORINSTITUTINGANENQUIRYAGAINST/-#SUNDER3ECTION READ
Chairman’s Desk
with Section 3 & 4 of Competition Act and directing the Director General to cause a detailed and thorough investigation against
OMCs, not to impose restrictive and anti-competitive conditions in their tenders and subsequent contracts with transporters of
From the
BULK,0'AD
INTERIMAGAINSTmOATINGOFJOINTTENDERSBY/-#S4HEOBJECTIONOFTHETRANSPORTERSISFORmOATINGJOINTTENDERSBY
/-#SFORBULK,0'TRANSPORTATIONARBITRARYPRICEBANDANDANTI
COMPETITIVEMANDATORYUSEOFmEETLOYALTYCARDS
TIEUPFORFUEL
REQUIREMENTSARBITRARYPREFERENCETO3TATE
REGISTEREDTRUCKS!REPLYONBEHALFOF/-#SWASSUBMITTEDONANDTHE
MATTERWASARGUEDON!DDITIONALAPPLICATIONONTIE
UPARRANGEMENTSFORFUELREQUIREMENTOFTRANSPORTERSLOYALTY
CARDS
8TRA0OWER#ARDSOF)NDIAN/ILWASSUBMITTEDTO##)ON##)VIDEORDERDATEDHADOBSERVED
About IndianOil
that no case of contravention under Section 3 or Section 4 of the Act is made out against the OMCs. Accordingly, the complaint
ISORDEREDTOBECLOSEDFORTHWITHINTERMSOF3ECTION OFTHE!CT(ENCETHEMATTERWASDECIDEDINFAVOUROFTHE/-#S
without any adverse observation/penalties by the CCI.
IV 2ELIANCE)NDUSTRIES,IMITEDlLEDACOMPLAINTAGAINSTTHE/-#S.ATIONAL!VIATION#OMPANY)NDIA,IMITED.!#), BEFORE
THE##)WHEREINALLEGATIONSWEREMADEABOUTCARTELISATIONETCOFTENDERmOATEDBY.!#),FORSUPPLYOF!4&FOR
OMCs had raised preliminary objection relating to the jurisdiction of CCI. By Order dated 30.09.2010, CCI held that the
Description of
PRELIMINARYOBJECTIONWASLEGALLYNOTTENABLEANDWASACCORDINGLYDISMISSED!GAINSTTHIS/RDERANAPPEALWASlLEDINTHE(IGH
Capitals
Court of Delhi. On the last date, i.e., 02.05.2018 of the hearing, the Hon’ble Court directed that the matter be listed along with
70OF4HENEXTDATEOFHEARINGISYETTOBElXED
4. Did your Company carry out any consumer survey/consumer satisfaction trends?
Board of
Directors’
Report
Discussion & Analysis
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Statements
Financial
138 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
Sl. Name Category Designation Date of Tenure (in years)
No. appointment as on 31.03.2019
10. Shri Ashutosh Jindal Non-Executive Director Govt. Nominee Director 3.13
Chairman’s Desk
11. Shri Parindu K. Bhagat Non-Executive Director Independent Director 3.33
From the
Shri Vinoo Mathur Non-Executive Director Independent Director
13. Shri Samirendra Chatterjee Non-Executive Director Independent Director
14. Shri C. R. Biswal Non-Executive Director Independent Director
Dr. Jagdish Kishwan Non-Executive Director Independent Director
About IndianOil
16. Shri Sankar Chakraborti Non-Executive Director Independent Director
17. Shri D. S. Shekhawat Non-Executive Director Independent Director
Description of
3HRI!+3HARMAWASRE
APPOINTEDAS$IRECTOR&INANCE FORAPERIODOFMONTHSWEF
Capitals
Based on the disclosures received from all the Independent intimated to the Board members so as to enable the Directors to
Directors and also in the opinion of the Board, the Independent PLANTHEIRSCHEDULEACCORDINGLY4HE$IRECTORSAREALSOGIVENTHE
$IRECTORS FULlLL THE CRITERIA OF INDEPENDENCE AS SPECIlED IN THE option to participate in the meeting through video conferencing
Board of
Board Meeting with the approval of the Chairman and consent
4HETERMSANDCONDITIONSOFAPPOINTMENTOF)NDEPENDENT$IRECTORS
The terms and conditions of appointment of Independent Directors
of Directors. For paperless Board Meetings, the agenda items
are hosted on the website of the Company www.iocl.com.
ARE UPLOADED ON A DIGITAL PLATFORM "OARD 0ORTAL WHICH CAN BE
!S REQUIRED UNDER THE 3%") ,/$2 -S 2AGINI #HOKSHI #O accessed by the Directors electronically on their electronic device
0RACTICING #OMPANY 3ECRETARY HAS CERTIlED THAT NONE OF THE IN A SECURED MANNER 4HE AGENDA ITEMS ARE COMPREHENSIVE AND
directors on the board of the company have been debarred or informative in nature to facilitate deliberations and appropriate
Directors’
Report
DISQUALIlEDFROMBEINGAPPOINTEDORCONTINUINGASDIRECTORSOFTHE decision making at the Board Meeting.
Company by the Ministry of Corporate Affairs or any such statutory
Presentations are made to the Board on various functional and
authority.
Management’s
on its board viz. Functional Directors, Government Directors ACTIVITIESASWELLASONMAJORPROJECTSlNANCIALHIGHLIGHTSETC4HE
and Independent Directors are selected and appointed by the agenda placed before the Board inter-alia includes the following:
Government as per a well laid down process for each category
» Annual operating plans and Capital and Revenue budgets.
OF $IRECTOR 4HE LIST OF CORE SKILLS EXPERTISE AND COMPETENCE
Responsibility Report
REQUIRED FOR THE "OARD TO FUNCTION EFFECTIVELY IN CONTEXT OF THE » Quarterly and Annual Financial results of the Company.
Company’s business, forms an integral part of the Government’s
» Dividend declaration.
process for selection of the Directors. In view thereof, the Board
Business
OFTHE#OMPANYHASNOTIDENTIlEDANYSUCHCORESKILLSOREXPERTISE » Constitution of Board Committees with terms of reference.
OR COMPETENCE REQUIRED BY A $IRECTOR AS REQUIRED UNDER 3%")
» Minutes of meetings of Audit Committee and other Committees
,/$2
of the Board, as also resolutions passed by circulation. Report on Corporate
(b) Board Meetings » Investment in any joint venture / subsidiary and review of
Governance
4HE "OARD OF $IRECTORS OVERSEES THE OVERALL FUNCTIONING OF THE their performance.
Company and has set strategic objectives in order to achieve its » New projects and expansion plans.
6ISION 4HE "OARD LAYS DOWN THE #OMPANYS POLICY AND OVERSEES
ITS IMPLEMENTATION IN ATTAINING ITS OBJECTIVES 4HE "OARD HAS » Status of various projects.
constituted various committees to facilitate the smooth and » Risk management and minimization process.
EFlCIENTmOWOFDECISIONMAKINGPROCESS
» HR related issues.
Statements
Financial
$URINGTHElNANCIALYEAR
"OARD-EETINGSWEREHELD
4HE DATES OF THE "OARD -EETINGS ARE lXED WELL IN ADVANCE AND » Safety / Security related matters
140 Indian Oil Corporation Limited 2nd Integrated Annual Report
- Compliance of laws
Sl. Date Board Strength No. of Directors
- Disciplinary cases No. Present
!CTION4AKEN2EPORT!42 ONDECISIONSOFTHE"OARD 1. 17 17
17 17
3IGNIlCANTDEVELOPMENTSINBETWEENTWO"OARD-EETINGS
3. 16
- Monthly report on share transfer
4. 11.08.18 17 17
- Quarterly Compliance Report on Corporate Governance
18 17
- Quarterly Report on Share Capital Audit 6. 10.10.18 18 17
- Quarterly Report on status of Investor Grievance 7. 18 17
(c) Attendance of each Director at Board Meetings held during 2018-19, last Annual General Meeting (AGM)
and Number of other Directorships and Chairmanship / Membership of Committees of each Director in
various companies is as under:
Name of the Director No. of Board Attendance No. of Directorship in other Membership Chairmanship of
Meetings at the AGM Directorship listed entities as on of Committees Committees in
attended out on 29.08.18 in other 31.03.19 & category in other other Companies
of meetings (Yes / No / Companies as of Directorship companies as as on 31.03.19
held during NA) on 31.03.19 on 31.03.19
the tenure of
Director
Whole-time Directors
Shri Sanjiv Singh Chairman Yes #HENNAI0ETROLEUM - -
$).
#ORPORATION,TD
- Non Executive
Chairman
0ETRONET,.'
,TD
.ON%XECUTIVE
Director
Shri A. K. Sharma1 Yes - - -
$IRECTOR&INANCE
$).
About the
Report
Name of the Director No. of Board Attendance No. of Directorship in other Membership Chairmanship of
Meetings at the AGM Directorship listed entities as on of Committees Committees in
attended out on 29.08.18 in other 31.03.19 & category in other other Companies
Chairman’s Desk
of meetings (Yes / No / Companies as of Directorship companies as as on 31.03.19
held during NA) on 31.03.19 on 31.03.19
From the
the tenure of
Director
Dr. S. S. V. Ramakumar Yes 1 - - -
$).
$IRECTOR2ESEARCH
About IndianOil
$EVELOPMENT
Shri B. V. Rama Gopal Yes Chennai Petroleum - -
$IRECTOR2ElNERIES #ORPORATION,TD
$).n - Non Executive
Director
Shri Ranjan Kumar Mohapatra Yes 1 - - -
Description of
$IRECTOR(UMAN2ESOURCES
Capitals
$).n
Shri Gurmeet Singh Yes 1 - - -
$IRECTOR-ARKETING
Board of
$).
Non-Executive Directors (Govt. nominees)
Shri Ashutosh Jindal No - - - -
$).
Smt Sushmita Dasgupta4 NA NA - - - -
Directors’
$).
Report
Smt Urvashi Sadhwani NA - - - -
$).
Management’s
Smt Indrani Kaushal7 No - - - -
$).
Non-Executive Directors (Independent Directors)
Shri Parindu K. Bhagat8 Yes - - - -
Responsibility Report
$).
Shri Vinoo Mathur Yes - - - -
$).
Business
Shri Samirendra Chatterjee Yes - - - -
$).
Shri C. R. Biswal Yes 1 - 1 -
Report on Corporate
$).
Dr. Jagdish Kishwan Yes - - - -
Governance
$).
Shri Sankar Chakraborti No - - -
$).
Shri D. S. Shekhawat Yes - - - -
$).
Shri Vivek Rae9 NA 3 - - -
Statements
$).
Financial
9. Shri Vivek Rae ceased to be Director w.e.f 04.06.18. 3HRI$33HEKHAWAT)NDEPENDENT$IRECTOR
#HAIRMAN
3HRI3ANJAY+APOORCEASEDTOBE$IRECTORWEF 3HRI0ARINDU+"HAGAT)NDEPENDENT$IRECTOR
-EMBER
Note 1:4HE$IRECTORSHIPSHELDBY$IRECTORSASMENTIONEDABOVE 3HRI3AMIRENDRA#HATTERJEE)NDEPENDENT$IRECTOR
-EMBER
include public limited, private limited and foreign
companies but do not include the companies registered 4HE 4ERMS OF 2EFERENCE OF !UDIT #OMMITTEE COVERS ALL MATTERS
UNDERSECTIONOFTHE#OMPANIES!CT SPECIlEDUNDERTHEPROVISIONSOFTHE#OMPANIES!CTASWELL
ASREGULATION READWITH0ART#OF3CHEDULE))OFTHE3%")
Note 2:4HE -EMBERSHIP #HAIRMANSHIP OF #OMMITTEE IS ,/$2 WHICHINTER
ALIAINCLUDETHEFOLLOWING
considered only for Audit Committee and Stakeholders’
Relationship Committee. » /VERSEEING THE #OMPANYS lNANCIAL REPORTING PROCESS AND
DISCLOSUREOFlNANCIALINFORMATIONTOENSURETHATTHElNANCIAL
Note 3: In case of cessation of Directorship, the details of STATEMENTSARECORRECTSUFlCIENTANDCREDIBLE
directorship on Board of other companies and committee
» 2EVIEWING WITH MANAGEMENT THE QUARTERLY AND ANNUAL
position are as on the date of cessation from the Board of
lNANCIALSTATEMENTSAUDITORSREPORTALONGWITHRELATEDPARTY
the company.
transactions, if any, before submission to the Board.
None of the Directors on the Board is a member of more than » !PPROVAL OR ANY SUBSEQUENT MODIlCATION OF TRANSACTIONS OF
#OMMITTEESOR#HAIRPERSONOFMORETHAN#OMMITTEESACROSS the Company with related parties.
all the listed companies in which they are a Director. All the
$IRECTORSHAVEMADEREQUISITEDISCLOSURESREGARDING$IRECTORSHIP » Review of matters to be included in Directors Responsibility
Committee position occupied by them in other companies. Statement that forms part of the Board Report.
A brief resume of the Directors, who are being re-appointed at the » Reviewing with the management and statutory and internal
forthcoming Annual General Meeting, is given in the notice of the AUDITORSTHEADEQUACYOFINTERNALCONTROLSYSTEMS
AGM. » Discussion with internal auditors on Annual Internal Audit
0ROGRAM 3IGNIlCANT !UDIT &INDINGS AND FOLLOW UP ON SUCH
(d) Code of Conduct issues.
4HE Code
The #ODE of
OF Conduct
#ONDUCT for
FOR the
THE Directors
$IRECTORS and
AND Senior
3ENIOR Management
-ANAGEMENT
» Discussion with statutory auditors before the audit commences
Personnel of the Company has been laid down by the Board, on the nature and scope of audit, as well as having post-audit
which has been circulated to all concerned and the same is also discussion to ascertain any area of concern.
HOSTED on
hosted ON the
THE website
WEBSITE of
OF the
THE Company
#OMPANY “www.iocl.com”.
hWWWIOCLCOMv The
4HE
Directors and Senior Management personnel of the Company have » 2EVIEWING THE #OMPANYS lNANCIAL AND RISK MANAGEMENT
AFlRMEDCOMPLIANCEWITHTHEPROVISIONSOFTHE#ODEOF#ONDUCT
affirmed compliance with the provisions of the Code of Conduct policies.
FORTHElNANCIALYEARENDEDANDNOMATERIALlNANCIALOR
for the financial year ended 31.03.19 and no material financial or
» %VALUATIONOFINTERNALlNANCIALCONTROLSANDRISKMANAGEMENT
COMMERCIAL transactions
commercial TRANSACTIONS which
WHICH may
MAY have
HAVE potential
POTENTIAL conflict
CONmICT with
WITH
systems.
the interest of the Company were reported by them.
60th Annual Report 2018-19 143
About the
Report
» Reviewing with the management, the observations / comments and recommending audit fee for the statutory audit as well as
/ and management’s assurances thereon of the Comptroller & to approve fee for other services by the auditors.
!UDITOR'ENERALOF)NDIA#!'
» Recommending the appointment of cost auditors of the
Chairman’s Desk
» Review with the management, the follow-up action taken on Company and review of Cost Audit Report.
the recommendations of the Parliamentary Committee on
» 4OEXAMINEDECIDEANDDEALWITHALLISSUESRELATINGTO%THICS
From the
0UBLIC5NDERTAKING#O05 IFANY
in the Company.
» Noting the appointment of Statutory Auditors of the Company
» Review of functioning of Whistle-Blower Policy.
About IndianOil
4HEATTENDANCEATTHEMEETINGSOFTHE!UDIT#OMMITTEEHELDDURINGTHEYEAR
ISGIVENBELOW
Name Meeting held on
21.05.18 25.06.18 10.08.18 09.10.18 01.11.18 13.12.18 29.01.19 23.02.19 27.03.19
Shri Sanjay Kapoor
#HAIRMANUPTO Yes Yes Yes Yes Yes NA NA NA NA
Description of
Shri Parindu K. Bhagat Yes Yes Yes Yes Yes Yes Yes Yes Yes
Capitals
Shri D. S. Shekhawat
-EMBERUPTO Yes Yes Yes Yes Yes Yes Yes Yes Yes
#HAIRMANWEF
Board of
4HE !UDIT #OMMITTEE MEETINGS ARE ATTENDED BY THE $IRECTOR 4HE.OMINATIONAND2EMUNERATION#OMMITTEECOMPRISEDOFTHE
&INANCE AND THE (EAD OF )NTERNAL !UDIT AS INVITEES 4HE following members as on 31.03.19:
representatives of the Statutory Auditors are also invited and attend
$R*AGDISH+ISHWAN)NDEPENDENT$IRECTOR
#HAIRMAN
THE !UDIT #OMMITTEE MEETINGS WHILE CONSIDERING THE QUARTERLY
Directors’
ANNUALlNANCIALSTATEMENTSANDDISCUSSIONONNATUREANDSCOPE 3HRI#2"ISWAL)NDEPENDENT$IRECTOR
-EMBER
Report
OF!NNUAL!UDIT4HE#OST!UDITORSAREALSOINVITEDWHENTHE#OST
3HRI!SHUTOSH*INDAL'OVT.OMINEE$IRECTOR
-EMBER
Audit Reports are considered by the Audit Committee.
Management’s
are then circulated to all concerned departments of the Company #OMMITTEEHELDDURING
ISGIVENBELOW
for necessary action and are also submitted to the Board for
information. Name Meeting held on
4HE #OMPANY 3ECRETARY ACTS AS THE 3ECRETARY OF THE !UDIT 11.08.18 11.01.19 30.01.19
Responsibility Report
Committee. Shri Vivek Rae
#HAIRMANUPTO Yes NA NA NA
II) Nomination and Remuneration Committee
Business
Dr. Jagdish Kishwan
4HECOMPANYBEINGA'OVERNMENT#OMPANYTHEAPPOINTMENTAND #HAIRMANWEF NA Yes Yes Yes
THETERMSANDCONDITIONSOFAPPOINTMENTINCLUDINGREMUNERATION
of the Whole-time Directors are decided by the Government of Shri C. R. Biswal Yes Yes Yes Yes Report on Corporate
India. However, the Board has constituted a Nomination and Shri Ashutosh Jindal - - Yes Yes
Remuneration Committee to: Shri Sanjiv Singh Yes Yes Yes Yes
Governance
» APPROVE CERTAIN PERQUISITES FOR 7HOLE
TIME $IRECTORS AND 4HE PERFORMANCE EVALUATION OF THE $IRECTORS INCLUDING )NDEPENDENT
below Board level executives as well as to approve performance $IRECTORS HASNOTBEENCARRIEDOUTBYTHE.OMINATION2EMUNERATION
related pay to the executives of the Company as per the DPE Committee, as the company being a Government Company, the powers
guidelines; relating to appointment, evaluation and the terms of Independent
$IRECTORSVESTSWITHTHE'OVTOF)NDIA4HESAMEISALSOEXEMPTEDTO
» create and sanction posts as well as to consider and approve
'OVT#OMPANIESUNDERTHEPROVISIONSOFTHE#OMPANIES!CT
Statements
Management Personnel. 4HE #OMPANY 3ECRETARY ACTS AS THE 3ECRETARY OF THE .OMINATION
Remuneration Committee.
144 Indian Oil Corporation Limited 2nd Integrated Annual Report
Directors' Remuneration:
4HEREMUNERATIONPAIDTO7HOLE
TIME$IRECTORSDURINGTHElNANCIALYEAR
ISASUNDER
(`)
Name of the Director Designation Salaries & Performance /THER"ENElTS Total
Allowances Linked Incentive Perquisites Remuneration
Note:
0ERFORMANCE,INKED)NCENTIVESAREPAYABLETOTHE7HOLE
TIME$IRECTORSASEMPLOYEESOFTHE#OMPANYASPERTHEPOLICYAPPLICABLETO
all executives of the Company.
$URINGTHEYEARNO3TOCK/PTIONSWEREISSUEDBYTHE#OMPANYTO7HOLE
TIME$IRECTORS
4HETERMSOFAPPOINTMENTOFTHE7HOLE
TIME$IRECTORSASISSUEDBYTHE'OVERNMENTOF)NDIAPROVIDESFORMONTHSNOTICEPERIODOR
salary in lieu thereof for severance of service.
4HEREMUNERATIONDOESNOTINCLUDETHEIMPACTOFPROVISIONMADEONACTUARIALVALUATIONFORRETIREMENTBENElTSLONGTERMSCHEMES
ANDPROVISIONMADEDURINGTHEPERIODTOWARDS0OST2ETIREMENT"ENElTSASTHESAMEARENOTSEPARATELYASCERTAINABLEFORINDIVIDUAL
directors.
4HE)NDEPENDENT$IRECTORSARENOTPAIDANYREMUNERATIONEXCEPTSITTINGFEESOF2S
PERMEETINGFORATTENDINGMEETINGSOFTHE
"OARDOR#OMMITTEESTHEREOF4HESITTINGFEESPAIDDURINGTHElNANCIALYEAR
ISASUNDER
About the
Report
The Government Nominee Directors are not paid any remuneration, 4HEATTENDANCEATTHEMEETINGOFTHE3TAKEHOLDERS2ELATIONSHIP
sitting fees, etc. #OMMITTEEHELDDURING
ISGIVENBELOW
Chairman’s Desk
25.02.19
4HEDETAILSOFSHARESOFTHECOMPANYHELDBYTHE$IRECTORSASON
From the
31.03.19 are given below: Shri Sankar Chakraborti Yes
#HAIRMANWEF
Sl. Name Designation No. of
Shri D. S. Shekhawat Yes
No. shares
Shri A. K. Sharma Yes
1. Shri Sanjiv Singh Chairman
About IndianOil
Shri A. K. Sharma $IRECTOR&INANCE Shri Ranjan Kumar Mohapatra Yes
3. Shri G. K. Satish $IRECTOR0"$
4HE#OMPANY3ECRETARYACTSASTHE3ECRETARYOFTHE3TAKEHOLDERS
4. Dr. S. S. V. Ramakumar $IRECTOR2$ 8800
2ELATIONSHIP#OMMITTEEANDISALSOTHE#OMPLIANCE/FlCER
Shri B. V. Rama Gopal $IRECTOR2ElNERIES 17380
Shri Ranjan Kumar $IRECTOR(UMAN $ETAILSOFCOMPLAINTSRECEIVEDANDREDRESSEDDURINGTHElNANCIAL
6. 9600
Mohapatra 2ESOURCES year 2018-19:
Description of
7. Shri Gurmeet Singh $IRECTOR-ARKETING During the year, 3968 complaints were received and all have
Capitals
Shri Akshay Kumar BEEN RESOLVED 4HIS INCLUDES COMPLAINTS FOR NON
RECEIPT OF
8. $IRECTOR0IPELINES -
Singh dividends. As on 31.03.19, no complaints were pending. Further,
Government DURINGTHEYEARREQUESTSFORCHANGEOFADDRESSRECORDINGOF
Board of
Independent
11. Shri Parindu K. Bhagat - 4HE #OMPANY HAS CREATED A DESIGNATED EMAIL
ID
Director
investors@indianoil.in exclusively for investors and for responding
Independent
Shri Vinoo Mathur - TOTHEIRQUERIES
Director
13.
Shri Samirendra Independent
- IV) Corporate Social Responsibility & Sustainable
Directors’
Chatterjee Director
Development Committee
Report
Independent
14. Shri C. R. Biswal - 4HE #OMPANY #ORPORATE 3OCIAL 2ESPONSIBILITY #32 IS GUIDED
Director
Management’s
to conduct business in an ethical and sustainable manner, and
Independent
16. Shri Sankar Chakraborti - to contribute to the economic well-being of the country, while
Director
IMPROVINGTHEQUALITYOFLIFEOFTHELOCALCOMMUNITYRESIDINGINTHE
Independent
17. Shri D. S. Shekhawat - vicinity of its establishments and society at large.
Director
Responsibility Report
In line with the above vision, the Board has constituted the
#ORPORATE3OCIAL2ESPONSIBILITY3USTAINABLE$EVELOPMENT#32
III) Stakeholders’ Relationship Committee 3$ #OMMITTEETORECOMMENDMONITORANDADMINISTERACTIVITIES
Business
4HE 3TAKEHOLDERS 2ELATIONSHIP #OMMITTEE EXAMINES THE under the Sustainability and CSR Policy and to also oversee its
grievances of stakeholders / investors and the system of redressal performance / implementation.
OF THE SAME )T ALSO APPROVES ISSUANCE OF SHARE CERTIlCATES 4HE
4HE #OMMITTEE COMPRISED OF THE FOLLOWING MEMBERS AS ON Report on Corporate
#OMPANYENDEAVORSTORESOLVECOMPLAINTSGRIEVANCESQUERIESOF
31.03.19:
stakeholders / investors within a reasonable period of time.
Governance
About the
Report
Sl. Name of Role and Responsibilities Members
No. Committee
4. Contracts 4OAPPROVECONTRACTSBEYONDCERTAINLIMITS !LL7HOLE
TIME$IRECTORS4HE#OMMITTEEISHEADEDBYTHE
Chairman’s Desk
Committee as provided in the Delegation of Authority of Chairman of the Company.
the Company.
From the
Planning 4OCONSIDERANDAPPROVEALLPROJECT !LL7HOLE
TIME$IRECTORS4HE#OMMITTEEISHEADEDBYTHE
& Projects proposals above D100 crore and upto D Chairman of the Company.
Committee crore.
6. ,.'3OURCING 4OREVIEWTHETERMSANDCONDITIONOF - Chairman
About IndianOil
Committee ,.'SALESAND0URCHASE!GREEMENTAND - 1 Government Nominee Director
recommend the same to Board for approval
$IRECTOR&INANCE
FORPURCHASEOF,.'ONLONGTERMBASIS
$IRECTOR0"$
$IRECTOR2ElNERIES
4HECOMMITTEEISHEADEDBYTHE#HAIRMANOFTHE#OMPANY
Description of
7. Dispute 4OEXAMINEANDGIVERECOMMENDATIONON
)NDEPENDENT$IRECTORS
Capitals
Settlement THESETTLEMENTPROPOSALSHAVINGlNANCIAL
$IRECTOR&INANCE
Committee implication of more than DCROREFOR
- Concerned Functional Director
approval of the Board as per Conciliation
Board of
4HE#OMPANY3ECRETARYISTHE3ECRETARYTOALLTHE"OARD#OMMITTEES
4HECOMPOSITIONOFVARIOUSCOMMITTEESOF"OARDOF$IRECTORSISALSOHOSTEDONTHEWEBSITEOFTHE#OMPANYWWWIOCLCOM
The composition of various committees of Board of Directors is also hosted on the website of the Company www.iocl.com.
4HEREHAVEBEENNOINSTANCESWHEREANYRECOMMENDATIONMADEBYANY"OARD#OMMITTEEHASNOTBEENACCEPTEDBYTHE"OARDOFTHE
COMPANYDURINGTHEYEAR
Directors’
Report
4. GENERAL MEETINGS 5. POSTAL BALLOT
Management’s
-UMBAIWHERETHE2EGISTERED/FlCEISSITUATED4HEDETAILSOFTHE DURINGTHEYEAR
AGM held for the past three years are as under:
4HEREISNOIMMEDIATEPROPOSALFORPASSINGANYRESOLUTIONTHROUGH
Postal Ballot. None of the businesses proposed to be transacted at
2015-16 2016-17 2017-18 THEENSUING!NNUAL'ENERAL-EETINGREQUIREPASSINGTHERESOLUTION
Date and 14.09.16
Responsibility Report
through Postal Ballot.
Time 10:30 AM 10:30 AM 10:30 AM
Venue Nehru Centre Hotel Rang Nehru Centre
6. DISCLOSURES
Business
Auditorium, Sharda, Auditorium,
Discovery of KC Marg, Discovery of
India Building, Bandra India Building,
a. Separate Meeting of Independent Directors
Worli, Reclamation, Worli, A separate meeting of Independent Directors was held on 30.01.19 Report on Corporate
-UMBAIn Bandra West, -UMBAIn ASPERPROVISIONSOFTHE#OMPANIES!CTAND3%"),/$2
400 018 -UMBAIn 400 018
Governance
!SPERTHEPOLICYON204ALLRELATEDPARTYTRANSACTIONSAREAPPROVED Government Auditors, Statutory Auditors and Internal Auditors are
BYTHE!UDIT#OMMITTEE4HE!UDIT#OMMITTEEHADGRANTEDOMNIBUS also important constituents of the vigil mechanism to review the
APPROVALFOR204SDURING
INLINEWITHTHEPROVISIONSOF ACTIVITIESOFTHE#OMPANYANDREPORTOBSERVATIONSONANYDElCIENCY
THE#OMPANIES!CT3%"),/$2 ANDTHEPOLICYON204! or irregularities.
report on such transactions was submitted to the Audit Committee
4HE #OMPANY HAS FRAMED A 7HISTLE "LOWER 0OLICY WHEREIN THE
ONQUARTERLYBASIS
employees are free to report any improper activity resulting in
4HE#OMPANYHASNOTENTEREDINTOANYMATERIALLYSIGNIlCANTRELATED violations of laws, rules, regulations or code of conduct by any of
party transactions during the year. the employees, including leakage / misuse of unpublished price
SENSITIVE INFORMATION IN VIOLATION OF )NDIAN/ILS )NSIDER 4RADING
!S required
As REQUIRED under
UNDER the
THE SEBI
3%") (LODR),
,/$2 the
THEdisclosure
DISCLOSUREof
OFRelated
2ELATED
Code, to the Competent Authority or Chairman of the Audit
0ARTY4RANSACTIONSONACONSOLIDATEDBASISINTHEPRESCRIBEDFORMAT
Party Transactions on a consolidated basis in the prescribed format
Committee, as the case may be. Any complaint received would
WASlLEDWITHTHESTOCKEXCHANGESANDHASALSOBEENHOSTEDONTHE
was filed with the stock exchanges and has also been hosted on the
be reviewed by the Competent Authority or Chairman of the Audit
website of the company www.iocl.com.
#OMMITTEE 4HE POLICY PROVIDES THAT THE CONlDENTIALITY OF THOSE
reporting violations shall be maintained and they shall not be
c. Material Subsidiaries subjected to any discriminatory practice. No employee has been
4HE#OMPANYHASAh0OLICYFOR$ETERMINING-ATERIAL3UBSIDIARIESv denied access to the Audit Committee.
4HESAMEHASBEENHOSTEDONTHEWEBSITEOFTHE#OMPANYANDCAN
be accessed at the following link: 4HE7HISTLE
"LOWERPOLICYISHOSTEDONTHEWEBSITEOFTHE#OMPANY
www.iocl.com.
https://iocl.com/InvestorCenter/Policy_on_Material_Subsidiary.pdf
4HEREWERENOMATERIALUNLISTEDSUBSIDIARIESDURINGTHEYEAR
f. CEO / CFO Certification
4HEMINUTESOFTHE"OARD-EETINGSOFUNLISTEDSUBSIDIARIESARE 4HE#HAIRMANAND$IRECTOR&INANCE OFTHE#OMPANYHAVEGIVEN
submitted to the Board of the Company on periodic basis. THEh#%/#&/#ERTIlCATIONvTOTHE"OARD
About the
Report
k. Disclosure regarding commodity price risk and using hedging tools allowed to be traded under laws in India to
MONITORMANAGESIGNIlCANTRISKS
Hedging activities
4HECOMPANYHASA"OARDAPPROVEDPOLICYFORTHERISKMANAGEMENT
Chairman’s Desk
(i) Entity’s Risk Management Policy w.r.t. commodities covering the exposure towards commodities, commodity risk and
and its hedging: hedged exposure.
From the
4HE #OMPANY IS EXPOSED TO A NUMBER OF COMMODITY PRICE RISKS (ii) Exposure to commodity and commodity risks faced
SUCHASVARIATIONINRElNINGMARGINSIETHEDIFFERENCEBETWEEN throughout the year:
RElNED PRODUCT PRICE AND CRUDE PRICE RISK OF VALUE EROSION IN
inventory due to prices, risk of higher crude prices on crude a. Total estimated exposure of the listed entity to commodities
in INR:
About IndianOil
CONSUMED IN RElNING SYSTEM RISK OF VARIATION IN PRICES OF ,.'
ON RElNERY CONSUMPTION RISK OF PRICE VARIATIONS ON IMPORT OF 4HE VALUE OF TOTAL )NVENTORY HELD BY THE COMPANY FOR 2AW
PETROLEUMPRODUCTSAND,.'FORMARKETINGETC -ATERIALS3TOCKIN0ROCESS&INISHED'OODSAND3TOCKIN4RADEAS
4HE#OMPANYASSESSESTHESERISKSANDBASEDONPOTENTIALOFTHESE ONWASDCRORE4HE2ElNERYMARGINSFOR
risks being realized, appropriate hedging positions are undertaken THE&INANCIAL9EAR
WASDCROREAPPROX
Description of
Capitals
b. Exposure of the listed entity to material commodities:
Commodity Name Exposure in INR Exposure in Quantity % of such exposure hedged through commodity
Board of
D in Crore In MMT OTC Exchange OTC Exchange
2ElNERY-ARGIN 1700 .), .), .),
Inventory as on 31.03.19
- Crude Oil .), .), .), .), .),
Directors’
- Finished Goods 3,400 .), .), .), .), .),
Report
INCLUDING3TOCK)N4RADE
Management’s
c. Commodity risks faced by the entity during the year and how m. Fees paid to Statutory Auditors:
they have been managed:
4HESTATUTORYAUDITORSOFTHECOMPANYWEREPAIDATOTALAMOUNTOF
4HE PRIMARY COMMODITY RISK FACED BY THE COMPANY IS THE RISK D4.34 crore for all the services rendered by them to the Company.
Responsibility Report
AROUNDPRICEMOVEMENTIN#RUDEOILRElNEDPRODUCTSAND,.'
Any adverse movement in commodity prices may affect the margin. n. Quarterly Compliance Report on Corporate
Similarly, any favorable movement in prices can also allow margins Governance
Business
TORISE(EDGINGACTIVITIESARETARGETEDATlXINGAPRICEFORREDUCING
UNCERTAINTIESVOLATILITIESINFUTURECASHmOWS 4HE #OMPANY HAS SUBMITTED THE QUARTERLY COMPLIANCE REPORT
on corporate governance in the prescribed format to the stock
EXCHANGES WITHIN lFTEEN DAYS FROM CLOSE OF THE QUARTER 4HE
l. Disclosures in relation to Sexual Harassment of Report on Corporate
same is also hosted on the website of the company www.iocl.com.
Women at Workplace (Prevention, Prohibition
Governance
$IRECTORSDURINGTHEPERIODTOANDATLEASTONE c. Website
WOMANDIRECTORFORTHEPERIODTO
4HE#OMPANYSWEBSITEWWWIOCLCOMPROVIDESASEPARATESECTION
TO 4HE COMPANY BEING A 'OVERNMENT #OMPANY
for investors where relevant shareholders information is available.
under the administrative control of the Ministry of Petroleum &
4HE!NNUAL2EPORTOFTHE#OMPANYISALSOHOSTEDONTHE#OMPANY
.ATURAL'AS-O0.' THEPOWERTOAPPOINT$IRECTORSINCLUDING
website www.iocl.com.
)NDEPENDENT$IRECTORS VESTSWITHTHE'OVERNMENTOF)NDIA
4HECOMPANYISFOLLOWINGUPWITHTHE-O0.'ONREGULARBASISTO d. Annual Report
APPOINTREQUISITENUMBEROF$IRECTORSTOENSURECOMPLIANCEWITH Annual Report is circulated to shareholders and others entitled
3%"),/$2 THERETO4HE-ANAGEMENT$ISCUSSIONAND!NALYSIS-$! 2EPORT
and Corporate Governance Report form part of the Annual Report.
p. Adoption of the non-mandatory requirements of
SEBI (LODR) e. Chairman’s Speech at AGM
4HE #OMPANY HAS NOT ADOPTED ANY DISCRETIONARY REQUIREMENTS 4HE #HAIRMANS SPEECH IS DISTRIBUTED TO THE SHAREHOLDERS AT THE
PROVIDED UNDER 3CHEDULE )) 0ART % OF 3%") ,/$2 (OWEVER !'-4HESAMEISALSOPLACEDONTHEWEBSITEOFTHE#OMPANYFOR
THE 3TATUTORY !UDITORS HAVE EXPRESSED UN
MODIlED OPINION ON information of the shareholders residing in various parts of the
&INANCIAL3TATEMENTFORTHEYEAR
country.
About the
Report
(b) Financial Year: (e) Listing of securities on Stock Exchanges:
4HE&INANCIAL9EAROFTHE#OMPANYWASFROMTO
4HE EQUITY SHARES ISSUED BY THE #OMPANY ARE LISTED ON THE
4HElNANCIALCALENDARTOAPPROVEQUARTERLYANNUALlNANCIALRESULT "3%,IMITED"3% ANDTHE.ATIONAL3TOCK%XCHANGEOF)NDIA
Chairman’s Desk
FORTHEYEAR
ISGIVENBELOW ,IMITED.3% 4HEADDRESSOFTHE"3%.3%ISPROVIDEDIN
the Annual Report.
From the
Quarter ending 30th*UNE On or before 14.08.19
Quarter ending 30th 3EPTEMBER On or before 14.11.19
4HE #OMPANY HAS PAID ,ISTING FEES IN RESPECT OF ITS LISTED
Quarter ending 31st$ECEMBER /NORBEFORE SECURITIES TO BOTH THE STOCK EXCHANGES FOR THE lNANCIAL YEAR
Quarter and year ending 31st-ARCH /NORBEFORE
About IndianOil
4HE4RADING7INDOWFORDEALINGINSECURITIESOFTHECOMPANYSHALL (f) Corporate Identity Number (CIN):
remain closed for “Insiders” of the company from the end of each 4HE #OMPANY IS REGISTERED WITH THE 2EGISTRAR OF #OMPANIES
QUARTERTILLHOURSAFTERTHElNANCIALRESULTSFORTHEQUARTERARE 2O# IN THE 3TATE OF -AHARASHTRA )NDIA 4HE #). ALLOTTED
lLEDWITHSTOCKEXCHANGESANDBECOMEGENERALLYAVAILABLE TO THE #OMPANY BY THE -INISTRY OF #ORPORATE !FFAIRS -#! IS
,-('/)
(c) Book Closure Date for Final Dividend:
Description of
Book Closure for Final Dividend TO
(g) Stock Code at BSE : 530965
Capitals
BOTHDAYSINCLUSIVE (h) Stock Code at NSE : IOC
(d) Dividend Payment Date: (i) Demat ISIN Number
Board of
-ARCHRESPECTIVELY
)NADDITIONAlNALDIVIDENDOFD
PERSHARE RECOMMENDED
(j) Stock Market Data:
by the Board of Directors, if approved at the AGM, shall be paid to 4HEMARKETPRICEANDVOLUMEOFTHE#OMPANYS%QUITY3HARES
the eligible shareholders within the stipulated 30 days period after FACEVALUEDEACH TRADEDONTHE"3%.3%DURINGTHE
the AGM as provided under the Companies Act. lNANCIALYEAR
AREGIVENBELOW
Directors’
Report
BSE NSE
Month
High (D) Low (D) Volume High (D) Low (D) Volume
Management’s
-AY 176.70 177.00
*UNE 19,08,19,930
*ULY 169.10 18,61,90,330
Responsibility Report
!UGUST 99,87,438 171.80
3EPTEMBER 160.10 13,44,93,343
Business
/CTOBER
.OVEMBER
$ECEMBER Report on Corporate
(k) Stock Price Performance in comparison to broad- (l) Registrar & Transfer Agents (RTA) :
based indices: +ARVY#OMPUTERSHARE0VT,TD+#0, WASTHE2EGISTRAR4RANSFER
$URING
THE SHARE PRICE OF THE #OMPANY OPENED AT !GENTS24! OFTHE#OMPANY$URINGTHEYEARPURSUANTTOASCHEME
` ONANDCLOSEDAT` ONON of arrangement and amalgamation, approved by the Hyderabad
THE"3%THEREBYDECREASINGBY$URINGTHESAMEPERIOD "ENCHOFTHE.ATIONAL#OMPANY,AW4RIBUNALVIDEORDERDATEDrd
the BSE SENSEX opened at 33031 and closed at 38673 thereby /CTOBER THE OPERATIONS OF +#0, HAVE BEEN TRANSFERRED TO
INCREASING BY 4HE .3% .)&49 OPENED AT AND +ARVY&INTECH0VT,TD+&0, )NTERMSOFTHEAPPROVEDSCHEME
CLOSEDATTHEREBYINCREASINGBY THE24!BUSINESSOF+#0,INCLUDINGALLTHELICENSESGOTTRANSFERRED
TO +&0, ON THE SAMETERMSAND CONDITIONS AS THOSE AVAILABLE TO
4HERELATIVECOMPARISONONBASEOF OFTHEMONTHLYCLOSING +#0,WEFth.OVEMBER4HECHANGEINNAMEOFTHE24!
price of the Company’s share vis-a-vis BSE SENSEX and NSE has been intimated to the Stock Exchanges and also updated on
.)&49DURING
ISGIVENBELOW THEWEBSITEOFTHE#OMPANY4HEADDRESSFORCORRESPONDENCEWITH
THE24!ISASGIVENBELOW
Relative Movement of IndianOil share closing price +ARVY&INTECH0RIVATE,IMITED
vis-a-vis BSE Sensex during 2018-19 +ARVY3ELENIUM4OWER"0LOT
150 Gachibowli Financial District, Nanakramguda,
(YDERABADn
4EL.O
125
4OLL&REE.O
&AX.O
100
E-mail Address : einward.ris@karvy.com
7EBSITE www.karvyfintech.com
WWWKARVYlNTECHCOM
75
(m) Share Transfer System:
50
4HE SHARES OF THE #OMPANY ARE TRADED IN DEMATERIALISED FORM
Feb-19
Jan-19
Mar-19
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
3%") VIDE CIRCULAR DATED th $ECEMBER HAS DIRECTED THAT
no transfer of shares in physical form would be allowed w.e.f. 1st
BSE SENSEX !PRIL !CCORDINGLY NO TRANSFER OF SHARES IN PHYSICAL FORM
IOC Share Price Base 100 = April 2018 would be processed w.e.f. 1st!PRIL(OWEVERALLREQUESTSFOR
transfer of shares in physical form received upto 31st-ARCH
have been transferred within the stipulated time from the date of
Relative Movement of IndianOil share closing price vis- lodgement subject to documents being valid and complete in all
a-vis NSE Nifty during 2018-19 RESPECTS4HEREWERENOOVERDUESHARETRANSFERSPENDINGASONst
-ARCH)NORDERTOEXPEDITETHEPROCESSOFSHARETRANSFERAND
INLINEWITHREGULATION OFTHE3%"),/$2 THE#OMPANYHAS
150 DELEGATED THE POWER OF SHARE TRANSFER TO ITS 24!
+ARVY &INTECH
0VT,TD
125
100
75
50
Jan-19
Feb-19
Mar-19
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
NSE NIFTY
IOC Share Price Base 100 = April 2018
60th Annual Report 2018-19 153
About the
Report
(n) Distribution of shareholding as on 31.03.19:
Sl. Nominal Value of Equity Shares (`) No. of Shareholders % of Shareholders Amount (`) % of Amount
No. (Folios)
Chairman’s Desk
1.
81.90 0.48
From the
6.88
3.
4.04 0.30
4.
30001 - 40000 0.94 0.16
About IndianOil
6.
0.14
7.
6,747 1.48
8. 100001 & Above 97.89
Total 4,57,003 100.00 9414,15,89,220 100.00
Description of
Capitals
Sl. Category Shareholders (Folios) Shares
No. No. % No. %
Board of
4. 'OVERNMENT#OMPANY/IL)NDIA,TD 1 0.00
Corporate Bodies 0.49 0.84
6. FIIs / NRIs
7. Banks / Indian Financial Institutions 40 0.01 0.07
8. Mutual Funds 0.03 6.43
Directors’
Report
9. Insurance Companies 8 0.00
10. Public 4,47,004 97.81 3.67
Management’s
13. Others 344 0.09
Total 4,57,003 100.00 941,41,58,922 100.00
Responsibility Report
Note:
I 4ILL -AY 0RESIDENT OF )NDIA 0O) WAS HOLDING iii. Under the company"UYBACKOF3HARESSHARESWERE
Business
EQUITYSHARESCONSTITUTING OFTHETOTAL BOUGHTBACKFROMTHE0RESIDENTOF)NDIA0O) ANDCONSEQUENTLY
EQUITYSHARECAPITAL4HEREAFTERIN*UNETHE0O)DISINVESTED THE SHAREHOLDING OF 0O) REDUCED FROM EQUITY
EQUITY SHARES IN FAVOUR OF "HARAT %4& AN SHARES TOEQUITYSHARESCONSTITUTING
EXCHANGETRADEDFUNDCOMPRISINGOFSTOCKSMANAGEDBY)#)#) OFTHEPAID
UPEQUITYSHARECAPITALOFthe company. Report on Corporate
0RUDENTIAL -UTUAL &UND WHEREBY THE 0O) HOLDING REDUCED TO
IV /NTHE0O)DISINVESTEDEQUITYSHARESIN
EQUITY SHARES CONSTITUTING OF THE PAID
Governance
UPEQUITYSHARECAPITALOFTHECOMPANY FAVOUROF"HARAT%4&WHEREBYTHE0O)HOLDINGFURTHERREDUCED
TOEQUITYSHARESCONSTITUTINGOFTHEPAID
II /N THE 0O) FURTHER DISINVESTED UPEQUITYSHARECAPITALOFthe company.
EQUITY SHARES IN FAVOUR OF #03% %4& AN EXCHANGE TRADED FUND
COMPRISINGOFSTOCKSMANAGEDBY2ELIANCE.IPPON,IFE!SSET V /NTHE0O)FURTHERDISINVESTEDEQUITY
-ANAGEMENT #OMPANY WHEREBY THE 0O) HOLDING REDUCED TO SHARESINFAVOUROF#03%%4&WHEREBYTHE0O)HOLDINGREDUCED
TOEQUITYSHARESCONSTITUTINGOFTHEPAID
Statements
(q) Dematerialisation of Shares and Liquidity: ii) Bonus issue since listing of the shares:
4HESHARESOFTHE#OMPANYARETRADEDINDEMATERIALISEDFORM)N Financial Year Ratio
order to facilitate the shareholders to dematerialise the shares, the
1999-00 1:1
#OMPANY HAS ENTERED INTO AN AGREEMENT WITH .3$, AND #$3,
4HESUMMARISEDPOSITIONOFSHAREHOLDERSIN0HYSICALAND$EMAT
1:1
segment as on 31.03.19 is as under:
1:1
1:1
Type of Shareholders Shareholding
Shareholding (Folios)
(s) Unclaimed Dividend and shares transferred to
No. No.
IEPF Authority:
Physical 4,488 0.98 0.31
3ECTION OF THE #OMPANIES !CT PROVIDES THAT ANY
Demat 99.69 dividend that has remained unpaid / unclaimed for a period of
seven years from the date of transfer to unpaid dividend account
Total 4,57,003 100.00 941,41,58,922 100.00
shall be transferred to the Investor Education and Protection Fund
)%0& ESTABLISHEDBY#ENTRAL'OVERNMENT
(r) Corporate Action 4HE#OMPANYANNUALLYSENDSREMINDERLETTERTOTHESHAREHOLDERS
i) Dividend History : advising them to lodge their claim for such unpaid dividend.
4HEREAFTER THE UNCLAIMED UNPAID DIVIDEND IS TRANSFERRED TO
4HE #OMPANY HAS BEEN CONSISTENTLY DECLARING DIVIDENDS 4HE the IEPF authority on the due date. Accordingly, the unclaimed
DIVIDENDPAIDDURINGTHELASTlNANCIALYEARSISGIVENBELOW dividend of `
FORTHE&INANCIAL9EAR
WAS
transferred to the IEPF authority on 16.11.18.
Financial Year Rate Remarks
(%)
-
-
-
-
-
-
-
)NCLUDES)NTERIM$IVIDENDOF
)NCLUDESINTERIMDIVIDENDOF
)NCLUDES)NTERIM$IVIDENDOF
60th Annual Report 2018-19 155
About the
Report
4HEDETAILSOFDIVIDENDWHICHREMAINSUNPAIDUNCLAIMEDASON 4HE SUMMARY OF SHARES LYING IN THE DEMAT ACCOUNT OF )%0&
31.03.19 are given below: authority is given below:
Chairman’s Desk
&INAL Shares in the demat account of IEPF Authority
as on 01.04.18
From the
&INAL
Add: Shares transferred to demat account of 16,66,314
&INAL
)%0&AUTHORITYON
&INAL ,ESS3HARESCLAIMEDBYINVESTORSFROM)%0& -
)NTERIM authority
About IndianOil
&INAL Shares in the demat account of IEPF Authority
ST)NTERIM as on 31.03.19
ND)NTERIM 4HEPROCEDUREFORCLAIMINGTHEUNPAIDDIVIDENDAMOUNTANDSHARES
&INAL transferred to the IEPF Authority is provided on the following link:
)NTERIM
http://www.iepf.gov.in/IEPF/refund.html
Description of
&INAL
ST)NTERIM (t) Credit Rating
Capitals
ND)NTERIM Credit rating assigned to the Company for various debt instruments
Total 40,62,00,171.26 by Rating Agencies is as under:
Board of
24! )SSUER
RTA, Issuer #OMPANIES
Companies AND
and "ANKER
Banker TO
to AN
an ISSUEv
issue”, THE
the #OMPANY
Company n&OREIGN#URRENCY
had credited back all demand drafts and dividend warrants lying
unpaid beyond the validity period thereby resulting in increase in Senior Unsecured Debt Fitch BBB- Stable
the unpaid dividend account balances during the year. n&OREIGN#URRENCY
Bank Facilities #2)3), #2)3),!!! Stable
4HE)%0&RULESNOTIlEDBYTHE-INISTRYOF#ORPORATE!FFAIRSFURTHER
The IEPF rules notified by the Ministry of Corporate Affairs further
n,ONG4ERM
Directors’
provides that details of all unclaimed / unpaid dividend as on the AGM
Report
DATESHALLBElLEDWITHTHE-#!ANDALSOHOSTEDONTHEWEBSITEOF
date shall be filed with the MCA and also hosted on the website of Bank Facilities #2)3), #2)3),! -
the Company within 90 days from the date of the AGM. Accordingly, n3HORT4ERM
Management’s
Commercial Papers India Ratings ).$! -
Company’s website www.iocl.com.
3ECTION OFTHE#OMPANIES!CTREADWITHRULESMADE
Section 124(6) of the Companies Act, 2013 read with rules made
thereunder provides that all shares in respect of which dividend has (u) Plant locations:
not been paid or claimed for seven consecutive years or more shall be
4HE ADDRESSES OF THE PLANT LOCATIONS ARE GIVEN IN THE !NNUAL
Responsibility Report
transferred by the Company in the name of Investor Education and
Report.
0ROTECTION &UND
Protection Fund. 3ECTION
Section
125 FURTHER
further PROVIDES
provides THAT
that A
a SHAREHOLDER
shareholder
whose dividend amount / shares have been transferred to the IEPF
(v) Address for Correspondence:
Business
shall be entitled to claim refund therefrom.
Company Secretary
In line with the IEPF Rules, the Company sends reminder letter to all )NDIAN/IL#ORPORATION,IMITED
such shareholders, whose dividend has remained unpaid / unclaimed IndianOil Bhavan
Report on Corporate
FOR aA CONSECUTIVE
for consecutive PERIOD
period OF
of
7 YEARS
years WITH
with A
a REQUEST
request TO
to CLAIM
claim THE
the G-9, Ali Yavar Jung Marg
dividends, failing which the shares would be transferred to the IEPF
Governance
"ANDRA%AST
Authority on the due date. -UMBAI
Accordingly, all such shares in respect of which dividend had 4EL.O
remained unpaid/unclaimed for a consecutive period of 7 years i.e. &AX
FROM
TO
WERETRANSFERREDTOTHEDEMATACCOUNT
from 2010-11 to 2017-18, were transferred to the demat account E-mail ID : investors@indianoil.in
OFTHE)%0&AUTHORITYON
of the IEPF authority on 4HEDETAILSOFSUCHSHARESARE
29.11.18. The details of such shares are
Statements
For S. K. MEHTA & CO. For V. SANKAR AIYAR & CO. For C. K. PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
(Firm Regn. No. 000478N) (Firm Regn. No. 109208W) (Firm Regn. No. 323220E) (Firm Regn. No. 311017E)
Place : Mumbai
Date : 19th June 2019
STANDALONE
FINANCIAL STATEMENTS
2018-19
158 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
Key Audit Matters Auditors’ response to Key Audit Matters
Capital Work-in-Progress
Chairman’s Desk
4HE#OMPANYISINTHEPROCESSOFEXECUTINGVARIOUSPROJECTSLIKE 7EPERFORMEDANUNDERSTANDINGANDEVALUATIONOFTHESYSTEMOF
EXPANSIONOFRElNERIESINSTALLATIONOFNEWPLANTSDEPOTS,0' INTERNALCONTROLOVERTHECAPITALWORKINPROGRESSWITHREFERENCETO
BOTTLING PLANTS TERMINALS PIPELINES ETC 3INCE THESE PROJECTS IDENTIlCATIONANDTESTINGOFKEYCONTROLS
From the
TAKEASUBSTANTIALPERIODOFTIMETOGETREADYFORINTENDEDUSE
7E ASSESSED THE PROGRESS OF THE PROJECT AND THE INTENTION AND
ANDDUETOTHEIRMATERIALITYINTHECONTEXTOFTHEBALANCESHEET
ABILITYOFTHEMANAGEMENTTOCARRYFORWARDANDBRINGTHEASSETTO
OFTHE#OMPANYTHISISCONSIDEREDTOBEANAREAWHICHHADTHE
ITSSTATEOFINTENDEDUSE
SIGNIlCANTEFFECTONTHEOVERALLAUDITSTRATEGYANDALLOCATIONOF
About IndianOil
resources in planning and completing our audit
Provision for Direct Taxes
4HE#OMPANYHASUNCERTAINDIRECTTAXPOSITIONSINCLUDINGMATTERS /UR AUDIT PROCESS INVOLVED ASSESSMENT OF THE MANAGEMENTS
UNDERDISPUTEWHICHINVOLVESSIGNIlCANTJUDGMENTRELATINGTOTHE UNDERLYING ASSUMPTIONS IN ESTIMATING THE TAX PROVISION AS
POSSIBLEOUTCOMEOFTHESEDISPUTESINESTIMATIONOFTHEPROVISION CONlRMED BY THE #OMPANYS TAX CONSULTANTS AND THE POSSIBLE
FORINCOMETAX"ECAUSEOFTHEJUDGEMENTREQUIREDTHEAREAISA OUTCOMEOFTHEDISPUTESTAKINGINTOACCOUNTTHELEGALPRECEDENCE
Description of
KEYAUDITMATTERFOROURAUDIT JURISPRUDENCE AND OTHER RULINGS IN EVALUATING MANAGEMENTS
POSITIONONTHESEUNCERTAINDIRECTTAXPOSITIONS7EHAVEOBSERVED
Capitals
THATTHEPROVISIONFORTAXESTIMATEDASABOVEINCLUDINGTHEDEFERRED
TAX HAS NOT RESULTED IN MATERIAL DEVIATION FROM THE APPLICABLE
RATE OF TAX AFTER CONSIDERING THE EXEMPTIONS DEDUCTIONS AND
Board of
4HE #OMPANY IS INVOLVED IN VARIOUS TAXES AND OTHER DISPUTES /URAUDITPROCEDUREINRESPONSETOTHISKEY!UDIT-ATTERINCLUDED
FOR WHICH lNAL OUTCOMES CANNOT BE EASILY PREDICTED AND AMONGOTHERS
WHICH COULD POTENTIALLY RESULT IN SIGNIlCANT LIABILITIES 4HE
• !SSESSMENTOFTHEPROCESSANDRELEVANTCONTROLSIMPLEMENTED
ASSESSMENTOFTHERISKSASSOCIATEDWITHTHELITIGATIONSISBASED
TOIDENTIFYLEGALANDTAXLITIGATIONSANDPENDINGADMINISTRATIVE
ON COMPLEX ASSUMPTIONS WHICH REQUIRE THE USE OF JUDGEMENT
PROCEEDINGS
AND SUCH JUDGEMENT RELATES PRIMARILY TO THE ASSESSMENT OF
Directors’
THE UNCERTAINTIES CONNECTED TO THE PREDICTION OF THE OUTCOME • !SSESSMENTOFASSUMPTIONSUSEDINTHEEVALUATIONOFPOTENTIAL
Report
OF THE PROCEEDINGS AND TO THE ADEQUACY OF THE DISCLOSURES IN LEGALANDTAXRISKSPERFORMEDBYTHELEGALANDTAXDEPARTMENT
THE lNANCIAL STATEMENTS "ECAUSE OF THE JUDGEMENT REQUIRED OFTHE#OMPANYCONSIDERINGTHELEGALPRECEDENCEANDOTHER
Management’s
• )NQUIRY WITH THE LEGAL AND TAX DEPARTMENTS REGARDING THE
STATUSOFTHEMOSTSIGNIlCANTDISPUTESANDINSPECTIONOFTHE
KEYRELEVANTDOCUMENTATION
• !NALYSISOFOPINIONRECEIVEDFROMTHEEXPERTSWHEREAVAILABLE
Responsibility Report
• 2EVIEWOFTHEADEQUACYOFTHEDISCLOSURESINTHENOTESTOTHE
lNANCIALSTATEMENTS
Goods and Services Tax (GST)
Business
4HECOUNTRYHASADOPTEDGOODSANDSERVICESTAXWITHEFFECTFROM /URAUDITPROCESSINVOLVEDASSESSINGTHEMANAGEMENTSJUDGEMENT
*ULY 4HE GOODS AND SERVICE TAX IS APPLICABLE ONLY IN ONTHEINTERPRETATIONSINVOLVEDTAKINGINTOACCOUNTTHEADVICESAND
Report on Corporate
CASEOFCERTAINPRODUCTSANDSERVICESOFTHE#OMPANYWHILEMAJOR OPINIONSRECEIVEDFROMINDIRECTTAXEXPERTS
PRODUCTSARESTILLCOVEREDUNDERTHEOLDREGIMEVIZEXCISEDUTY
ANDVALUEADDEDTAX3INCETHE#OMPANYISCOVEREDUNDERBOTH
Governance
MATTERFOROURAUDIT
Statements
Standalone
statements
160 Indian Oil Corporation Limited 2nd Integrated Annual Report
3INCE JUDGEMENT OF THE MANAGEMENT IS REQUIRED TO DETERMINE • 3OME OF THE ENTITIES ARE STILL IN THE CONSTRUCTION STAGE AND
WHETHER THERE IS INDICATION OF POSSIBLE IMPAIRMENT AND have not begun commercial operations
CONSIDERING THE SUBJECTIVITY OF THE ESTIMATES RELATING TO THE "ASED ON THE INFORMATION AND EXPLANATIONS OBTAINED AS ABOVE
DETERMINATIONOFTHECASHmOWSANDTHEKEYASSUMPTIONSOFTHE WE CONCLUDED THAT THE -ANAGEMENTS JUDGEMENT REGARDING
IMPAIRMENT TEST THE AREA IS CONSIDERED A KEY AUDIT MATTER FOR INDICATION OF IMPAIRMENT IN CERTAIN INVESTMENTS DURING THE YEAR
OURAUDIT IS APPROPRIATE 7HERE THERE IS INDICATION OF IMPAIRMENT WE
EXAMINED THE APPROACH TAKEN BY MANAGEMENT TO DETERMINE THE
VALUEOFTHEINVESTMENTSANALYSEDTHEMETHODSANDASSUMPTIONS
applied by management to carry out the impairment test and the
REPORTSOBTAINEDFROMTHEEXPERTSINVALUATION
4HEFOLLOWINGAUDITPROCEDURESWEREADOPTED
• IDENTIlCATION AND UNDERSTANDING OF THE SIGNIlCANT CONTROLS
implemented by the Company over the impairment testing
PROCESS ANALYSIS OF THE REASONABLENESS OF THE PRINCIPAL
ASSUMPTIONSMADETOESTIMATETHEIRCASHmOWSANDOBTAINING
OTHER INFORMATION FROM MANAGEMENT THAT WE DEEMED TO BE
SIGNIlCANT
• ANALYSIS OF ACTUAL DATA OF THE YEAR AND PREVIOUS YEARS IN
COMPARISON WITH THE ORIGINAL PLAN IN ORDER TO ASSESS THE
NATUREOFVARIANCESANDTHERELIABILITYOFTHEPLANNINGPROCESS
• ASSESSMENT OF THE REASONABLENESS OF THE DISCOUNT RATE AND
GROWTHRATE
• VERIlCATIONOFTHEMATHEMATICALACCURACYOFTHEMODELUSED
TODETERMINETHEVALUEINUSEOFTHEINVESTMENTS
7EALSOEXAMINEDTHEADEQUACYOFTHEINFORMATIONPROVIDEDBYTHE
#OMPANYABOUTTHEIMPAIRMENTTESTANDITSCONSISTENCYWITHTHE
REQUIREMENTSOF)ND!3
60th Annual Report 2018-19 161
About the
Report
Key Audit Matters Auditors’ response to Key Audit Matters
Receivables from Airlines Customers
Chairman’s Desk
4HE #OMPANY HAS TRADE RECEIVABLES FROM CERTAIN AIRLINES /URAUDITPROCEDURESINCLUDED
4HE INCREASING CHALLENGES OVER THE ECONOMY AND OPERATING
• TESTING THE MANAGEMENTS JUDGMENT WITH RESPECT TO
From the
environment in the airline industry during the year have increased
RECOVERABILITYOFTHEDUESFROMAIRLINECOMPANIES
THE RISKS OF DEFAULT ON RECEIVABLES FROM THE #OMPANYS AIRLINE
CUSTOMERS IF THEY FAIL TO MEET THEIR CONTRACTUAL OBLIGATIONS IN • PERUSING THE CONlRMATIONS FROMRECONCILIATIONS WITH THE
ACCORDANCEWITHTHECONTRACTS airline customers indicating that there are no material
DISCREPANCIESORDISPUTES
4HE MANAGEMENT HAS DETERMINED AND ASSESSED THAT THESE
About IndianOil
AMOUNTS ARE GOOD OF RECOVERY CONSIDERING THE DUES RECEIVABLE • PERUSINGTHElNANCIALBANKGUARANTEESRECEIVEDFROMPRIVATE
FROMAGOVERNMENTAIRLINECOMPANYANDlNANCIALBANKGUARANTEES AIRLINESCOVERINGTHEAMOUNTDUEFROMTHEM
RECEIVEDFROMPRIVATEAIRLINESCOVERINGTHEAMOUNTDUEFROMTHE
PRIVATEAIRLINECOMPANIES 7EAREALSOINFORMEDTHATTHE#OMPANYHASINVOKEDBANKGUARANTEE
OBTAINEDFROMONEPRIVATEAIRLINEANDREALISEDTHEMONEYAGAINST
#ONSIDERINGTHEMATERIALITYOFTHEAMOUNTINVOLVEDWECONSIDERED THEDUESSUBSEQUENTTOTHE"ALANCE3HEETDATE
THISASAKEYAUDITMATTERFOROURAUDIT
Description of
Capitals
Information Other than the Standalone Financial Statements and Auditors’ Report Thereon
4HE
The #OMPANYS
Company’s "OARD
Board OF $IRECTORS is
of Directors IS responsible
RESPONSIBLE for
FOR the
THE preparation
PREPARATION of
OF the
THE other
OTHER information.
INFORMATION The
4HE other
OTHER information
INFORMATION comprises
COMPRISES the
THE
Board of
4HE
The INFORMATION
information TO
to THE
the EXTENT
extent AVAILABLE
available, RELATING
relating TO
to THE
the STANDALONE
standalone lNANCIAL
financial STATEMENTS
statements WHICH
which WILL
will BE
be INCLUDED
included IN
in THE
the -ANAGEMENT
Management
DISCUSSIONAND!NALYSISAND&INANCIAL0ERFORMANCE(IGHLIGHTSHAVEBEENMADEAVAILABLETOUSPRIORTOTHEDATEOFTHISAUDITORSREPORT
discussion and Analysis and Financial Performance Highlights have been made available to us prior to the date of this auditors’ report
ANDWEHAVENOTOBSERVEDANYMISSTATEMENT
and we have not observed any misstatement.
4HEOTHERINFORMATIONTOTHEEXTENTNOTMADEAVAILABLETOUSASOFTHEDATEOFSIGNINGTHISREPORTISEXPECTEDTOBEMADEAVAILABLETOUS
The other information, to the extent not made available to us as of the date of signing this report is expected to be made available to us
AFTERTHEDATEOFTHISAUDITORSREPORT
after the date of this auditors’ report.
Directors’
Report
/UROPINIONONTHESTANDALONElNANCIALSTATEMENTSDOESNOTCOVERTHEOTHERINFORMATIONANDWEWILLNOTEXPRESSANYFORMOFASSURANCE
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance
CONCLUSIONTHEREON
conclusion thereon.
Management’s
lNANCIALSTATEMENTSOROURKNOWLEDGEOBTAINEDINTHEAUDITOROTHERWISEAPPEARSTOBEMATERIALLYMISSTATED
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
)FBASEDONTHEWORKWEHAVEPERFORMEDONTHEOTHERINFORMATIONTHATWEOBTAINEDPRIORTOTHEDATEOFAUDITORSREPORTWECONCLUDETHAT
If, based on the work we have performed on the other information that we obtained prior to the date of auditors’ report, we conclude that
THEREISAMATERIALMISSTATEMENTOFTHISINFORMATIONWEAREREQUIREDTOREPORTTHATFACT7EHAVENOTHINGTOREPORTINTHISREGARD
there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
7HENWEREADTHEOTHERINFORMATIONIFWECONCLUDETHATTHEREISMATERIALMISSTATEMENTTHEREINWEAREREQUIREDTOCOMMUNICATETHE
When we read the other information, if we conclude that there is material misstatement therein, we are required to communicate the
Responsibility Report
MATTERTOTHOSECHARGEDWITHGOVERNANCE
matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
Business
4HE#OMPANYS"OARDOF$IRECTORSISRESPONSIBLEFORTHEMATTERSSTATEDINSECTION OFTHE!CTWITHRESPECTTOTHEPREPARATIONOF
THESESTANDALONElNANCIALSTATEMENTSTHATGIVEATRUEANDFAIRVIEWOFTHElNANCIALPOSITIONlNANCIALPERFORMANCETOTALCOMPREHENSIVE
INCOMECHANGESINEQUITYANDCASHmOWSOFTHE#OMPANYINACCORDANCEWITHTHE)ND!3ANDTHEOTHERACCOUNTINGPRINCIPLESGENERALLY Report on Corporate
ACCEPTED IN )NDIA INCLUDING )NDIAN !CCOUNTING 3TANDARDS SPECIlED UNDER SECTION OF THE !CT 4HIS RESPONSIBILITY ALSO INCLUDES
MAINTENANCEOFADEQUATEACCOUNTINGRECORDSINACCORDANCEWITHTHEPROVISIONSOFTHE!CTFORSAFEGUARDINGOFTHEASSETSOFTHE#OMPANY
Governance
ANDFORPREVENTINGANDDETECTINGFRAUDSANDOTHERIRREGULARITIESSELECTIONANDAPPLICATIONOFAPPROPRIATEACCOUNTINGPOLICIESMAKING
JUDGMENTSANDESTIMATESTHATAREREASONABLEANDPRUDENTANDDESIGNIMPLEMENTATIONANDMAINTENANCEOFADEQUATEINTERNALlNANCIAL
CONTROLSTHATWEREOPERATINGEFFECTIVELYFORENSURINGTHEACCURACYANDCOMPLETENESSOFTHEACCOUNTINGRECORDSRELEVANTTOTHEPREPARATION
ANDPRESENTATIONOFTHESTANDALONElNANCIALSTATEMENTSTHATGIVEATRUEANDFAIRVIEWANDAREFREEFROMMATERIALMISSTATEMENTWHETHER
Financial financial
DUETOFRAUDORERROR
Statements
Standalone
statements
162 Indian Oil Corporation Limited 2nd Integrated Annual Report
)NPREPARINGTHESTANDALONElNANCIALSTATEMENTSTHE"OARDOF$IRECTORSISRESPONSIBLEFORASSESSINGTHE#OMPANYSABILITYTOCONTINUEAS
AGOINGCONCERNDISCLOSINGASAPPLICABLEMATTERSRELATEDTOGOINGCONCERNANDUSINGTHEGOINGCONCERNBASISOFACCOUNTINGUNLESSTHE
MANAGEMENTEITHERINTENDSTOLIQUIDATETHE#OMPANYORTOCEASEOPERATIONSORHASNOREALISTICALTERNATIVEBUTTODOSO
4HE"OARDOF$IRECTORSISALSORESPONSIBLEFOROVERSEEINGTHE#OMPANYSlNANCIALREPORTINGPROCESS
Auditors’ Responsibilities for the Audit of the Standalone Financial Statements
/UROBJECTIVESARETOOBTAINREASONABLEASSURANCEABOUTWHETHERTHESTANDALONElNANCIALSTATEMENTSASAWHOLEAREFREEFROMMATERIAL
MISSTATEMENTWHETHERDUETOFRAUDORERRORANDTOISSUEANAUDITORSREPORTTHATINCLUDESOUROPINION2EASONABLEASSURANCEISAHIGH
LEVELOFASSURANCEBUTISNOTAGUARANTEETHATANAUDITCONDUCTEDINACCORDANCEWITH3!SWILLALWAYSDETECTAMATERIALMISSTATEMENT
WHENITEXISTS-ISSTATEMENTSCANARISEFROMFRAUDORERRORANDARECONSIDEREDMATERIALIFINDIVIDUALLYORINTHEAGGREGATETHEYCOULD
REASONABLYBEEXPECTEDTOINmUENCETHEECONOMICDECISIONSOFUSERSTAKENONTHEBASISOFTHESESTANDALONElNANCIALSTATEMENTS
!SPARTOFANAUDITINACCORDANCEWITH3!SWEEXERCISEPROFESSIONALJUDGMENTANDMAINTAINPROFESSIONALSKEPTICISMTHROUGHOUTTHEAUDIT
7EALSO
• )DENTIFYANDASSESSTHERISKSOFMATERIALMISSTATEMENTOFTHESTANDALONElNANCIALSTATEMENTSWHETHERDUETOFRAUDORERRORDESIGN
ANDPERFORMAUDITPROCEDURESRESPONSIVETOTHOSERISKSANDOBTAINAUDITEVIDENCETHATISSUFlCIENTANDAPPROPRIATETOPROVIDEABASIS
FOROUROPINION4HERISKOFNOTDETECTINGAMATERIALMISSTATEMENTRESULTINGFROMFRAUDISHIGHERTHANFORONERESULTINGFROMERRORAS
FRAUDMAYINVOLVECOLLUSIONFORGERYINTENTIONALOMISSIONSMISREPRESENTATIONSORTHEOVERRIDEOFINTERNALCONTROL
• /BTAINANUNDERSTANDINGOFINTERNALCONTROLSRELEVANTTOTHEAUDITINORDERTODESIGNAUDITPROCEDURESTHATAREAPPROPRIATEINTHE
CIRCUMSTANCES5NDERSECTION I OFTHE!CTWEAREALSORESPONSIBLEFOREXPRESSINGOUROPINIONONWHETHERTHE#OMPANYHAS
ADEQUATEINTERNALlNANCIALCONTROLSSYSTEMINPLACEANDTHEOPERATINGEFFECTIVENESSOFSUCHCONTROLS
• %VALUATETHEAPPROPRIATENESSOFACCOUNTINGPOLICIESUSEDANDTHEREASONABLENESSOFACCOUNTINGESTIMATESANDRELATEDDISCLOSURES
MADEBYMANAGEMENT
• #ONCLUDEONTHEAPPROPRIATENESSOFMANAGEMENTSUSEOFTHEGOINGCONCERNBASISOFACCOUNTINGANDBASEDONTHEAUDITEVIDENCE
OBTAINEDWHETHERAMATERIALUNCERTAINTYEXISTSRELATEDTOEVENTSORCONDITIONSTHATMAYCASTSIGNIlCANTDOUBTONTHEABILITYOFTHE
#OMPANYTOCONTINUEASAGOINGCONCERN)FWECONCLUDETHATAMATERIALUNCERTAINTYEXISTSWEAREREQUIREDTODRAWATTENTIONINOUR
AUDITORSREPORTTOTHERELATEDDISCLOSURESINTHESTANDALONElNANCIALSTATEMENTSORIFSUCHDISCLOSURESAREINADEQUATETOMODIFYOUR
OPINION/URCONCLUSIONSAREBASEDONTHEAUDITEVIDENCEOBTAINEDUPTOTHEDATEOFOURAUDITORSREPORT(OWEVERFUTUREEVENTSOR
CONDITIONSMAYCAUSETHE#OMPANYTOCEASETOCONTINUEASAGOINGCONCERN
• %VALUATETHEOVERALLPRESENTATIONSTRUCTUREANDCONTENTOFTHESTANDALONElNANCIALSTATEMENTSINCLUDINGTHEDISCLOSURESANDWHETHER
THESTANDALONElNANCIALSTATEMENTSREPRESENTTHEUNDERLYINGTRANSACTIONSANDEVENTSINAMANNERTHATACHIEVESFAIRPRESENTATION
7ECOMMUNICATEWITHTHOSECHARGEDWITHGOVERNANCEREGARDINGAMONGOTHERMATTERSTHEPLANNEDSCOPEANDTIMINGOFTHEAUDITAND
SIGNIlCANTAUDITlNDINGSINCLUDINGANYSIGNIlCANTDElCIENCIESININTERNALCONTROLTHATWEIDENTIFYDURINGOURAUDIT
7EALSOPROVIDETHOSECHARGEDWITHGOVERNANCEWITHASTATEMENTTHATWEHAVECOMPLIEDWITHRELEVANTETHICALREQUIREMENTSREGARDING
INDEPENDENCE AND TO COMMUNICATE WITH THEM ALL RELATIONSHIPS AND OTHER MATTERS THAT MAY REASONABLY BE THOUGHT TO BEAR ON OUR
INDEPENDENCEANDWHEREAPPLICABLERELATEDSAFEGUARDS
&ROMTHEMATTERSCOMMUNICATEDWITHTHOSECHARGEDWITHGOVERNANCEWEDETERMINETHOSEMATTERSTHATWEREOFMOSTSIGNIlCANCEINTHE
AUDITOFTHESTANDALONElNANCIALSTATEMENTSOFTHECURRENTPERIODANDARETHEREFORETHEKEYAUDITMATTERS7EDESCRIBETHESEMATTERSIN
OURAUDITORSREPORTUNLESSLAWORREGULATIONPRECLUDESPUBLICDISCLOSUREABOUTTHEMATTERORWHENINEXTREMELYRARECIRCUMSTANCESWE
DETERMINETHATAMATTERSHOULDNOTBECOMMUNICATEDINOURREPORTBECAUSETHEADVERSECONSEQUENCESOFDOINGSOWOULDREASONABLYBE
EXPECTEDTOOUTWEIGHTHEPUBLICINTERESTBENElTSOFSUCHCOMMUNICATION
Other Matters
A 7EDIDNOTAUDITTHESTANDALONElNANCIALSTATEMENTSINFORMATIONOFONE"RANCHINCLUDEDINTHESTANDALONElNANCIALSTATEMENTS
OFTHE#OMPANYWHOSElNANCIALSTATEMENTSlNANCIALINFORMATIONREmECTTOTALASSETSOF`CROREASAT-ARCHAND
TOTALREVENUESOF`CROREFORTHEYEARENDEDONTHATDATEASCONSIDEREDINTHESTANDALONElNANCIALSTATEMENTS4HElNANCIAL
60th Annual Report 2018-19 163
About the
Report
STATEMENTSINFORMATIONOFTHIS"RANCHHAVEBEENAUDITEDBYTHE"RANCH!UDITORWHOSEREPORTHASBEENFURNISHEDTOUSANDOUR
OPINIONINSOFARASITRELATESTOTHEAMOUNTSANDDISCLOSURESINCLUDEDINRESPECTOFTHIS"RANCHISBASEDSOLELYONTHEREPORTOFSUCH
"RANCH!UDITOR
Chairman’s Desk
B 4HESTANDALONElNANCIALSTATEMENTSINCLUDETHE#OMPANYSPROPORTIONATESHARERELATINGTO*OINTLYCONTROLLEDOPERATIONS INASSETS
`CRORELIABILITIES`CROREINCOMEOF`CROREANDEXPENDITURE`CROREANDELEMENTSMAKINGOFTHECASH
From the
mOWSTATEMENTANDRELATEDDISCLOSURESCONTAINEDINTHEENCLOSEDSTANDALONElNANCIALSTATEMENTSANDOUROBSERVATIONSTHEREONARE
BASEDONUNAUDITEDSTATEMENTSFROMTHEOPERATORSTOTHEEXTENTAVAILABLEWITHTHE#OMPANYINRESPECTOFBLOCKSIN)NDIAAND
OVERSEASANDHAVEBEENCERTIlEDBYTHEMANAGEMENT
7E HAVE ALSO PLACED RELIANCE ON TECHNICALCOMMERCIAL EVALUATIONS BY THE MANAGEMENT IN RESPECT OF CATEGORIZATION OF WELLS AS
About IndianOil
EXPLORATORYDEVELOPMENTANDDRYWELLALLOCATIONOFCOSTINCURREDONTHEMLIABILITYUNDER.EW%XPLORATION,ICENSING0OLICY.%,0
ANDNOMINATEDBLOCKSFORUNDER
PERFORMANCEAGAINSTAGREED-INIMUM7ORK0ROGRAMME
/UROPINIONISNOTMODIlEDINRESPECTOFTHESEMATTERS
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
!SREQUIREDBYTHE#OMPANIES!UDITORS2EPORT /RDERhTHE/RDERv ISSUEDBYTHE#ENTRAL'OVERNMENTOF)NDIAINTERMS
Description of
of sub- section (11) of Section 143 of the Act, and on the basis of such checks of the books and records of the Company as we
OFSUB
SECTION OF3ECTIONOFTHE!CTANDONTHEBASISOFSUCHCHECKSOFTHEBOOKSANDRECORDSOFTHE#OMPANYASWE
considered appropriate and according to the information and explanations given to us, we give in the “Annexure 1” a statement on
CONSIDEREDAPPROPRIATEANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSWEGIVEINTHEh!NNEXUREvASTATEMENTON
Capitals
the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
THEMATTERSSPECIlEDINTHEPARAGRAPHSANDOFTHESAID/RDERTOTHEEXTENTAPPLICABLE
2. 7EAREENCLOSINGOURREPORTINTERMSOF3ECTION OFTHE!CTONTHEBASISOFSUCHCHECKSOFTHEBOOKSANDRECORDSOFTHE
We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information and explanations given to us, in the “Annexure 2” on the
#OMPANYASWECONSIDEREDAPPROPRIATEANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSINTHEh!NNEXUREvONTHE
Board of
a) 7EHAVESOUGHTANDOBTAINEDALLTHEINFORMATIONANDEXPLANATIONSWHICHTOTHEBESTOFOURKNOWLEDGEANDBELIEFWERENECESSARY
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.
FORTHEPURPOSESOFOURAUDIT
b) )N
B In OUR
our OPINION
opinion, PROPER
proper BOOKS
books OF
of account
ACCOUNT as required BY
AS REQUIRED by LAW
law HAVE
have BEEN
been KEPT
kept BY
by THE
the #OMPANY
Company SO
so FAR
far AS
as IT
it APPEARS
appears FROM
from OUR
our
examination of those books and proper returns adequate for the purpose of our audit have been received from the Branch not
EXAMINATIONOFTHOSEBOOKSANDPROPERRETURNSADEQUATEFORTHEPURPOSEOFOURAUDITHAVEBEENRECEIVEDFROMTHE"RANCHNOT
visited by us.
VISITEDBYUS
Directors’
Report
c) 4HEREPORTONTHEACCOUNTSOFTHE"RANCHOFlCEOFTHE#OMPANYAUDITEDUNDERSECTION OFTHE!CTBY"RANCH!UDITORHAS
C The report on the accounts of the Branch office of the Company audited under section 143(8) of the Act, by Branch Auditor has
been sent to us and has been properly dealt with by us in preparing this report.
BEENSENTTOUSANDHASBEENPROPERLYDEALTWITHBYUSINPREPARINGTHISREPORT
Management’s
received from the Branch not visited by us.
RECEIVEDFROMTHE"RANCHNOTVISITEDBYUS
e) )NOUROPINIONTHEAFORESAIDSTANDALONElNANCIALSTATEMENTSCOMPLYWITHTHE)NDIAN!CCOUNTING3TANDARDSSPECIlEDUNDER
E In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
3ECTIONOFTHE!CTREADWITH2ULEOFTHE#OMPANIES!CCOUNTS 2ULES
Responsibility Report
f)
F We HAVE
7E have BEEN
been INFORMED
informed THAT
that THE
the PROVISIONS
provisions OF
of 3ECTION
Section
164(2) OF
of THE
the !CT
Act IN
in RESPECT
respect OF
of DISQUALIlCATION
disqualification OF
of DIRECTORS
directors ARE
are NOT
not
applicable to the Company, being a Government Company in terms of notification no. G.S.R.463(E) dated June 5, 2015 issued
APPLICABLETOTHE#OMPANYBEINGA'OVERNMENT#OMPANYINTERMSOFNOTIlCATIONNO'32% DATED*UNEISSUED
by Ministry of Corporate Affairs, Government of India.
BY-INISTRYOF#ORPORATE!FFAIRS'OVERNMENTOF)NDIA
Business
g) 7ITH
G With RESPECT
respect TO
to THE
the ADEQUACY
adequacy OF
of THE
the INTERNAL
internal lNANCIAL
financial CONTROLS
controls OVER
over lNANCIAL
financial REPORTING
reporting OF
of THE
the #OMPANY
Company AND
and THE
the OPERATING
operating
effectiveness of such controls, refer to our separate report in “Annexure 3”.
EFFECTIVENESSOFSUCHCONTROLSREFERTOOURSEPARATEREPORTINh!NNEXUREv
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
164 Indian Oil Corporation Limited 2nd Integrated Annual Report
H 7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITHTHEREQUIREMENTSOFSECTION
OFTHE!CTASAMENDED
7EAREINFORMEDTHATTHEPROVISIONSOF3ECTIONREADWITH3CHEDULE6OFTHE!CTRELATINGTOMANAGERIALREMUNERATIONARENOT
APPLICABLETOTHE#OMPANYBEINGA'OVERNMENT#OMPANYINTERMSOF-INISTRYOF#ORPORATE!FFAIRS.OTIlCATIONNO'32
% DATED*UNE
I 7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITH2ULEOFTHE#OMPANIES!UDIT
AND!UDITORS 2ULESINOUROPINIONANDTOTHEBESTOFOURINFORMATIONANDACCORDINGTOTHEEXPLANATIONSGIVENTOUS
I 4HE#OMPANYHASDISCLOSEDTHEIMPACTOFPENDINGLITIGATIONSONITSlNANCIALPOSITIONINITSSTANDALONElNANCIALSTATEMENTS
2EFER.OTE"TOTHESTANDALONElNANCIALSTATEMENTS
II 4HE #OMPANY HAS MADE PROVISION AS REQUIRED UNDER THE APPLICABLE LAW OR )NDIAN ACCOUNTING STANDARDS FOR MATERIAL
FORESEEABLELOSSESIFANYONLONGTERMCONTRACTSINCLUDINGDERIVATIVECONTRACTS
2EFER.OTETOSTANDALONElNANCIAL
STATEMENTS
III 4HEREHASBEENNODELAYINTRANSFERRINGTHEAMOUNTREQUIREDTOBETRANSFERREDTOTHE)NVESTOR%DUCATIONAND0ROTECTION
&UNDBYTHE#OMPANY
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
0LACEOF3IGNATURE.EW$ELHI
$ATEth-AY
60th Annual Report 2018-19 165
About the
Report
ANNEXURE 1 TO THE INDEPENDENT AUDITORS’ REPORT
Annexure referred to in Independent Auditors’ Report of even date to the members of Indian Oil Corporation Limited on the standalone
lNANCIALSTATEMENTSFORTHEYEARENDED-ARCH
Chairman’s Desk
I A 4HE#OMPANYHASGENERALLYMAINTAINEDPROPERRECORDSSHOWINGFULLPARTICULARSINCLUDINGQUANTITATIVEDETAILSANDSITUATIONOF
From the
lXEDASSETS
B 4HEREISAREGULARPROGRAMMEOFPHYSICALVERIlCATIONOFALLlXEDASSETSOTHERTHAN,0'CYLINDERSANDPRESSUREREGULATORSWITH
CUSTOMERSOVERAPERIODOFTHREEYEARSWHICHINOUROPINIONISREASONABLEHAVINGREGARDTOTHESIZEOFTHE#OMPANYANDTHE
NATUREOFITSlXEDASSETS)NOUROPINIONANDASPERTHEINFORMATIONGIVENBYTHE-ANAGEMENTTHEDISCREPANCIESOBSERVEDWERE
About IndianOil
NOTMATERIALANDHAVEBEENAPPROPRIATELYACCOUNTEDFORINTHEBOOKS
C !CCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSANDONTHEBASISOFOUREXAMINATIONOFRECORDSOFTHE#OMPANYTHE
TITLELEASEDEEDSOFTHEIMMOVABLEPROPERTIESAREHELDINTHENAMEOFTHE#OMPANYEXCEPTINCASESGIVENBELOW
Description of
,EASEHOLD,AND
/PERATINGLEASES
,EASEHOLD,AND
&INANCELEASES
Capitals
Leasehold Land- Total 24 69.34 61.04
&REEHOLD,AND
Board of
II )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHEINVENTORYEXCLUDINGINVENTORYLYINGWITHTHIRD
PARTIES AND MATERIAL IN TRANSIT HAS BEEN PHYSICALLY VERIlED BY THE MANAGEMENT DURING THE YEAR AT REASONABLE INTERVALS AND NO
MATERIALDISCREPANCIESWERENOTICEDONPHYSICALVERIlCATION
III )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYHASNOTGRANTEDANYLOANSSECUREDOR
UNSECUREDDURINGTHEYEARTOANYCOMPANIESlRMSANDLIMITEDLIABILITYPARTNERSHIPSOROTHERPARTIESCOVEREDINREGISTERMAINTAINED
UNDER3ECTIONOFTHE!CT
Directors’
Report
)NVIEWOFTHEABOVEREPORTINGUNDERCLAUSEIII A III B ANDIII C OFTHE/RDERISNOTAPPLICABLE
IV )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYISEXEMPTEDFROMTHEPROVISIONSOFSECTION
Management’s
V )N OUR OPINION AND ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US DURING THE YEAR THE #OMPANY HAS NOT ACCEPTED
DEPOSITSFROMTHEPUBLICINTERMSOFTHEPROVISIONSOFSECTIONSTOOFTHE!CTREADWITHTHE#OMPANIES!CCEPTANCEOF$EPOSITS
2ULESASAMENDEDANDOTHERRELEVANTPROVISIONSOFTHE!CTANDNODEPOSITSAREOUTSTANDINGATTHEYEARENDEXCEPTOLDCASES
under dispute aggregating to `CROREWHEREWEAREINFORMEDTHATTHE#OMPANYHASCOMPLIEDWITHNECESSARYDIRECTIONS
Responsibility Report
VI 7E HAVE BROADLY REVIEWED THE ACCOUNTS AND RECORDS MAINTAINED BY THE #OMPANY PURSUANT TO THE 2ULES MADE BY THE #ENTRAL
'OVERNMENTFORTHEMAINTENANCEOFCOSTRECORDSUNDERSUB
SECTION OF3ECTIONOFTHE!CTREADWITH#OMPANIES#OST2ECORDS
Business
!UDIT 2ULESASAMENDEDANDWEAREOFTHEOPINIONTHATPRIMAFACIETHEPRESCRIBEDACCOUNTSANDRECORDSHAVEBEENMADE
ANDMAINTAINED7EHAVENOTHOWEVERMADEDETAILEDEXAMINATIONOFTHERECORDSWITHAVIEWTODETERMINEWHETHERTHEYAREACCURATE
ANDCOMPLETE
Report on Corporate
VII A 5NDISPUTEDSTATUTORYDUESINCLUDINGPROVIDENTFUNDEMPLOYEESSTATEINSURANCEINCOMETAXSALES
TAXVALUEADDEDTAXSERVICE
TAXDUTYOFCUSTOMDUTYOFEXCISEGOODSANDSERVICETAXCESSANDOTHERSTATUTORYDUESHAVEGENERALLYBEENREGULARLYDEPOSITED
Governance
WITHTHEAPPROPRIATEAUTHORITIESANDTHEREARENOUNDISPUTEDDUESOUTSTANDINGASON-ARCHFORAPERIODOFMORETHAN
SIXMONTHSFROMTHEDATETHEYBECAMEPAYABLE
B 4HE DISPUTED STATUTORY DUES THAT HAVE NOT BEEN DEPOSITED ON ACCOUNT OF MATTERS PENDING BEFORE APPROPRIATE AUTHORITIES ARE
“Appendix A”
ANNEXEDINh!PPENDIX!vWITHTHISREPORT
Financial financial
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
0LACEOF3IGNATURE.EW$ELHI
$ATEth-AY
60th Annual Report 2018-19 167
About the
Report
REPORTING AS PER COMPANIES (AUDITOR’S REPORT) ORDER 2016
(DISPUTED STATUTORY DUES)
Appendix - A
Chairman’s Desk
Sl. Name of the Statute Nature of Dues Forum Where Gross Amount Amount Paid Amount (net Period to
No. Dispute is (` Crore) under Protest of deposits) which the
From the
pending (` Crore) (` Crore) Amount relates
(Financial
Years)
1 CENTRAL EXCISE #%.42!,%8#)3% Supreme Court TO
ACT, 1944 High Court TO
About IndianOil
4RIBUNAL TO
Revisionary TO
Authority
Appellate TO
Authority
"ELOW
Description of
4RIBUNAL
Capitals
Total 3,816.48 43.10 3,773.38
2 CUSTOMS ACT, #534/-3$549 Supreme Court TO
1962 High Court TO
Board of
Appellate TO
Authority
"ELOW
4RIBUNAL
Total 87.28 5.22 82.06
3 SALES TAX/VAT 3!,%34!86!4 Supreme Court
TO
Directors’
Report
LEGISLATIONS 452./6%24!8 High Court TO
4RIBUNAL TO
Management’s
Appellate TO
Authority
"ELOW
4RIBUNAL
Total 7,710.31 1,328.44 6,381.87
Responsibility Report
4 INCOME TAX ACT, ).#/-%4!8 Supreme Court
1961 High Court TO
Business
4RIBUNAL TO
Appellate TO
Authority
"ELOW Report on Corporate
4RIBUNAL
Total 4,959.20 3,058.15 1,901.05
Governance
4RIBUNAL
Total 43.68 0.97 42.71
Statements
Standalone
statements
168 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
ANNEXURE 2 TO THE AUDITORS’ REPORT
(Referred to in Paragraph 2 under “Other legal and regulatory requirements“ of our report of even date)
Chairman’s Desk
Sl. Directions Action Taken )MPACTONlNANCIAL
No. statements
From the
Whether the company has system in the place to #OMPANY HAS A ROBUST %20 SYSTEM 3!0 .),
process all the accounting transactions through it to process all the accounting transactions
SYSTEM )F YES THE IMPLICATIONS OF PROCESSING OF THROUGH )4 SYSTEM 3OME MANUAL INTERVENTION
ACCOUNTING TRANSACTION OUTSIDE )4 SYSTEM ON THE IS NECESSITATED FOR VALUATION OF INVENTORIES
About IndianOil
INTEGRITY OF THE ACCOUNTS ALONG WITH THE lNANCIAL HOWEVER ACCOUNTING ENTRIES FOR THE SAME ARE
IMPLICATIONSIFANYMAYBESTATED ALSOPROCESSEDTHROUGH%20
7HETHERTHEREISANYRESTRUCTURINGOFANEXISTINGLOAN Company has been regular in discharging its .),
OR CASES OF WAVIERWRITE OFF OF DEBTSLOANSINTEREST principal and interest obligations on various
ETC MADE BY A LENDER TO THE COMPANY DUE TO THE LOANS DURING
4HEREFORE THERE ARE
COMPANYSINABILITYTOREPAYTHELOAN)FYESlNANCIAL NO CASES OF RESTRUCTURING OF ANY LOAN OR CASES
Description of
impact may be stated OF WAIVERWRITE OFF OF DEBTSLOANSINTEREST ETC
MADE BY ANY LENDER DUE TO THE COMPANYS
Capitals
INABILITYTOREPAYTHELOAN
7HETHER FUNDS RECEIVEDRECEIVABLE FOR SPECIlC 4HE #OMPANY HAS PROPERLY ACCOUNTED FOR .),
SCHEMES FROM CENTRALSTATE AGENCIES WERE PROPERLY UTILIZED FUNDS RECEIVEDRECEIVABLE FOR SPECIlC
Board of
Directors’
Report
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Management’s
3D
3D
3D
3D
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER
Responsibility Report
-.O -.O -.O -.O
Business
0LACEOF3IGNATURE.EW$ELHI
$ATEth-AY
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
170 Indian Oil Corporation Limited 2nd Integrated Annual Report
!NNEXUREREFERREDTOIN)NDEPENDENT!UDITORSREPORTOFEVENDATETOTHEMEMBERSOF)NDIAN/IL#ORPORATION,IMITEDONTHESTANDALONE
lNANCIALSTATEMENTSFORTHEYEARENDED-ARCH
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
7EHAVEAUDITEDTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGOF)NDIAN/IL#ORPORATION,IMITEDhTHE#OMPANYv ASOF-ARCH
INCONJUNCTIONWITHOURAUDITOFTHESTANDALONElNANCIALSTATEMENTSOFTHE#OMPANYFORTHEYEARENDEDONTHATDATE
Management’s Responsibility for Internal Financial Controls
4HE#OMPANYSMANAGEMENTISRESPONSIBLEFORESTABLISHINGANDMAINTAININGINTERNALlNANCIALCONTROLSBASEDONTHEINTERNALCONTROLOVER
lNANCIALREPORTINGCRITERIAESTABLISHEDBYTHE#OMPANYCONSIDERINGTHEESSENTIALCOMPONENTSOFINTERNALCONTROLSTATEDINTHE'UIDANCE
.OTEON!UDITOF)NTERNAL&INANCIAL#ONTROLS/VER&INANCIAL2EPORTINGISSUEDBYTHE)NSTITUTEOF#HARTERED!CCOUNTANTSOF)NDIA)#!)
4HESERESPONSIBILITIESINCLUDETHEDESIGNIMPLEMENTATIONANDMAINTENANCEOFADEQUATEINTERNALlNANCIALCONTROLSTHATWEREOPERATING
EFFECTIVELYFORENSURINGTHEORDERLYANDEFlCIENTCONDUCTOFITSBUSINESSINCLUDINGADHERENCETOCOMPANYSPOLICIESTHESAFEGUARDINGOF
ITSASSETSTHEPREVENTIONANDDETECTIONOFFRAUDSANDERRORSTHEACCURACYANDCOMPLETENESSOFTHEACCOUNTINGRECORDSANDTHETIMELY
PREPARATIONOFRELIABLElNANCIALINFORMATIONASREQUIREDUNDERTHE!CT
Auditors’ Responsibility
/UR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THE #OMPANYS INTERNAL lNANCIAL CONTROLS OVER lNANCIAL REPORTING BASED ON OUR AUDIT
7ECONDUCTEDOURAUDITINACCORDANCEWITHTHE'UIDANCE.OTEON!UDITOF)NTERNAL&INANCIAL#ONTROLS/VER&INANCIAL2EPORTINGTHE
h'UIDANCE .OTEv AND THE 3TANDARDS ON !UDITING ISSUED BY )#!) AND PRESCRIBED UNDER SECTION OF THE !CT TO THE EXTENT
APPLICABLETOANAUDITOFINTERNALlNANCIALCONTROLSBOTHAPPLICABLETOANAUDITOF)NTERNAL&INANCIAL#ONTROLSANDBOTHISSUEDBYTHE
)NSTITUTEOF#HARTERED!CCOUNTANTSOF)NDIA4HOSE3TANDARDSANDTHE'UIDANCE.OTEREQUIRETHATWECOMPLYWITHETHICALREQUIREMENTS
ANDPLANANDPERFORMTHEAUDITTOOBTAINREASONABLEASSURANCEABOUTWHETHERADEQUATEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTING
WEREESTABLISHEDANDMAINTAINEDANDIFSUCHCONTROLSOPERATEDEFFECTIVELYINALLMATERIALRESPECTS
/UR AUDIT INVOLVES PERFORMING PROCEDURES TO OBTAIN AUDIT EVIDENCE ABOUT THE ADEQUACY OF THE INTERNAL lNANCIAL CONTROLS SYSTEM OVER
lNANCIALREPORTINGANDTHEIROPERATINGEFFECTIVENESS/URAUDITOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGINCLUDEDOBTAINING
ANUNDERSTANDINGOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGASSESSINGTHERISKTHATAMATERIALWEAKNESSEXISTSANDTESTING
ANDEVALUATINGTHEDESIGNANDOPERATINGEFFECTIVENESSOFINTERNALCONTROLBASEDONTHEASSESSEDRISK4HEPROCEDURESSELECTEDDEPENDON
THEAUDITORSJUDGEMENTINCLUDINGTHEASSESSMENTOFTHERISKSOFMATERIALMISSTATEMENTOFTHESTANDALONElNANCIALSTATEMENTSWHETHER
DUETOFRAUDORERROR
7E BELIEVE THAT THE AUDIT EVIDENCE WE HAVE OBTAINED IS SUFlCIENT AND APPROPRIATE TO PROVIDE A BASIS FOR OUR AUDIT OPINION ON THE
#OMPANYSINTERNALlNANCIALCONTROLSSYSTEMOVERlNANCIALREPORTING
Meaning of Internal Financial Controls over Financial Reporting
! COMPANYS INTERNAL lNANCIAL CONTROL OVER lNANCIAL REPORTING IS A PROCESS DESIGNED TO PROVIDE REASONABLE ASSURANCE REGARDING THE
RELIABILITY OF lNANCIAL REPORTING AND THE PREPARATION OF STANDALONE lNANCIAL STATEMENTS FOR EXTERNAL PURPOSES IN ACCORDANCE WITH THE
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ! COMPANYS INTERNAL lNANCIAL CONTROL OVER lNANCIAL REPORTING INCLUDES THOSE POLICIES AND
PROCEDURESTHAT PERTAINTOTHEMAINTENANCEOFRECORDSTHATINREASONABLEDETAILACCURATELYANDFAIRLYREmECTTHETRANSACTIONSAND
DISPOSITIONS OF THE ASSETS OF THE COMPANY PROVIDE REASONABLE ASSURANCE THAT TRANSACTIONS ARE RECORDED AS NECESSARY TO PERMIT
PREPARATION OF STANDALONE lNANCIAL 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 PROVIDEREASONABLEASSURANCEREGARDINGPREVENTIONORTIMELYDETECTIONOFUNAUTHORISEDACQUISITIONUSEORDISPOSITIONOFTHE
COMPANYSASSETSTHATCOULDHAVEAMATERIALEFFECTONTHESTANDALONElNANCIALSTATEMENTS
60th Annual Report 2018-19 171
About the
Report
Inherent Limitations of Internal Financial Controls over Financial Reporting
"ECAUSEOFTHEINHERENTLIMITATIONSOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGINCLUDINGTHEPOSSIBILITYOFCOLLUSIONORIMPROPER
MANAGEMENTOVERRIDEOFCONTROLSMATERIALMISSTATEMENTSDUETOERRORORFRAUDMAYOCCURANDNOTBEDETECTED!LSOPROJECTIONSOFANY
Chairman’s Desk
EVALUATIONOFTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGTOFUTUREPERIODSARESUBJECTTOTHERISKTHATTHEINTERNALlNANCIAL
CONTROLOVERlNANCIALREPORTINGMAYBECOMEINADEQUATEBECAUSEOFCHANGESINCONDITIONSORTHATTHEDEGREEOFCOMPLIANCEWITHTHE
From the
POLICIESORPROCEDURESMAYDETERIORATE
Opinion
)NOUROPINIONTHE#OMPANYHASINALLMATERIALRESPECTSANADEQUATEINTERNALlNANCIALCONTROLSSYSTEMOVERlNANCIALREPORTINGANDSUCH
INTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGWEREOPERATINGEFFECTIVELYASAT-ARCHBASEDONTHEINTERNALCONTROLOVER
About IndianOil
lNANCIALREPORTINGCRITERIAESTABLISHEDBYTHE#OMPANYCONSIDERINGTHEESSENTIALCOMPONENTSOFINTERNALCONTROLSTATEDINTHE'UIDANCE
.OTEON!UDITOF)NTERNAL&INANCIAL#ONTROLS/VER&INANCIAL2EPORTINGISSUEDBYTHE)#!)
Other Matters
/URAFORESAIDREPORTUNDERSECTION I OFTHE!CTONTHEADEQUACYANDOPERATINGEFFECTIVENESSOFTHEINTERNALlNANCIALCONTROLS
OVERlNANCIALREPORTINGINSOFARASITRELATESTOONE"RANCHAUDITEDBYTHE"RANCH!UDITORISBASEDONTHECORRESPONDINGREPORTOFTHE
Description of
"RANCH!UDITOR
Capitals
Directors and others
Board of
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Directors’
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Report
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
Management’s
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER
-.O -.O -.O -.O
Responsibility Report
0LACEOF3IGNATURE.EW$ELHI
$ATEth-AY
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
172 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
STANDALONE FINANCIAL STATEMENTS
BALANCE SHEET AS AT MARCH 31, 2019
`IN#RORE
Chairman’s Desk
Particulars Note No. March 31, 2019 March 31, 2018
From the
LIABILITIES
Non-Current Liabilities
A &INANCIAL,IABILITIES
I "ORROWINGS 34,666.36
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II /THER&INANCIAL,IABILITIES 616.03
B 0ROVISIONS 18 883.66
C $EFERRED4AX,IABILITIES.ET 15,823.07
D /THER.ON
#URRENT,IABILITIES 1,598.09
53,587.21 34,649.12
Description of
Current Liabilities
Capitals
A &INANCIAL,IABILITIES
I "ORROWINGS 21 48,593.55
Board of
"4OTAL OUTSTANDING DUES OF CREDITORS OTHER THAN -ICRO AND 38,443.76
Small Enterprises
III /THER&INANCIAL,IABILITIES 43,972.06
B /THER#URRENT,IABILITIES 12,080.50
C 0ROVISIONS 18 10,137.89
Directors’
Report
1,53,463.00 1,35,923.17
TOTAL EQUITY AND LIABILITIES 3,15,707.72 2,80,743.31
Management’s
!CCOMPANYING.OTESTO&INANCIAL3TATEMENTS
Responsibility Report
3D
3D
3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary
$).
$).
!#3
Business
As per our attached Report of even date
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES Report on Corporate
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
Governance
0LACE.EW$ELHI
$ATE-AY
174 Indian Oil Corporation Limited 2nd Integrated Annual Report
IV. Expenses:
[Includes ` CRORE ` CRORE INCLUDED IN
2EVENUEFROM/PERATIONS=
$EPRECIATIONAND!MORTIZATIONON
7,514.29 7,067.01
About the
Report
STANDALONE FINANCIAL STATEMENTS
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Chairman’s Desk
Particulars Note No. 2018-19 2017-18
From the
VIII. Other Comprehensive Income:
About IndianOil
PROlTORLOSS
IX. Total Comprehensive Income for the Year (VII+VIII) (Comprising 14,569.73
Description of
0ROlT,OSS AND/THER#OMPREHENSIVE)NCOMEFORTHE9EAR
Capitals
X. Earnings per Equity Share (`): 32
&ACE6ALUE0ER%QUITY3HARE` 10
Board of
3IGNIlCANT!CCOUNTING0OLICIES%STIMATES*UDGEMENTS !"
!CCOMPANYING.OTESTO&INANCIAL3TATEMENTS
Directors’
Report
For and on Behalf of Board of Directors
Management’s
Chairman $IRECTOR&INANCE Company Secretary
$).
$).
!#3
Responsibility Report
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
Business
3D
3D
3D
3D
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER Report on Corporate
-.O -.O -.O -.O Governance
0LACE.EW$ELHI
$ATE-AY
Financial financial
Statements
Standalone
statements
176 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
STANDALONE FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Chairman’s Desk
Particulars 2018-19 2017-18
$IVIDEND)NCOMEON)NVESTMENTS 1,348.63
From the
Net Cash Generated/(Used) in Investing Activities: (21,839.00) (15,778.68)
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0ROCEEDSFROM,ONG
4ERM"ORROWINGS)NCLUDINGlNANCELEASE 18,761.03
2EPAYMENTSOF,ONG
4ERM"ORROWINGS)NCLUDINGlNANCELEASE (2,356.61)
0ROCEEDSFROM2EPAYMENTSOF 3HORT
4ERM"ORROWINGS 11,785.52
Interest paid (3,777.31)
$IVIDEND$IVIDEND4AXPAID (11,635.34)
5TILISEDFOR)SSUEOF"ONUS3HARES"UY"ACKINCLUDINGEXPENSES (4,442.80)
Description of
Net Cash Generated/(Used) from Financing Activities: 8,334.49 (10,678.13)
Capitals
D Net Change in Cash & Cash Equivalents (A+B+C) (14.98) 0.62
Board of
NET CHANGE IN CASH & CASH EQUIVALENTS (E1 - E2) (14.98) 0.62
Notes:
.ET#ASH&LOW&ROM&INANCING!CTIVITIESINCLUDESFOLLOWINGNON
CASHCHANGES
Particulars 2018-19 2017-18
Directors’
Report
'AIN ,OSSDUETOCHANGESINEXCHANGERATE
)NCREASEIN,EASELIABILITIESDUETONEWLEASES
Management’s
3TATEMENTOF#ASH&LOWSISPREPAREDUSING)NDIRECT-ETHODASPER)NDIAN!CCOUNTING3TANDARD
3TATEMENTOF#ASH&LOWS
&IGURESFORPREVIOUSYEARHAVEBEENREGROUPEDWHEREVERNECESSARYFORUNIFORMITYINPRESENTATION
Responsibility Report
3D
3D
3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary
Business
$).
$).
!#3
0LACE.EW$ELHI
$ATE-AY
178 Indian Oil Corporation Limited 2nd Integrated Annual Report
B Other Equity
!PPROPRIATIONTOWARDS&INAL$IVIDEND
!PPROPRIATIONTOWARDS)NSURANCE2ESERVE.ET
!PPROPRIATIONTOWARDS#ORPORATE3OCIAL2ESPONSIBILITY2ESERVENET
&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS
&#-)4$!AMORTISEDDURINGTHEYEAR
4RANSFERREDTO3TATEMENTOF0ROlTAND,OSSRECYCLING
About the
Report
Chairman’s Desk
From the
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`IN#RORE
Description of
Reserves and Surplus Items of Other Comprehensive Income Total
Capitals
Insurance %XPORT0ROlT Corporate Social Foreign Currency Monetary Fair value Fair value Cash Flow
Reserve Reserve Responsibility Item Translation Difference of Equity of Debt Hedge
Reserve Account (FCMITDA) Instruments Instruments Reserve
Board of
Directors’
Report
Management’s
Responsibility Report
Business
Report on Corporate
223.48 53.72 - (45.77) 18,475.86 (149.41) - 1,00,692.33
Governance
Financial financial
Statements
Standalone
statements
180 Indian Oil Corporation Limited 2nd Integrated Annual Report
!PPROPRIATIONTOWARDS)NSURANCE2ESERVE.ET
!PPROPRIATIONTOWARDS#ORPORATE3OCIAL2ESPONSIBILITY2ESERVENET
&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS
&#-)4$!AMORTISEDDURINGTHEYEAR
4RANSFERREDTO3TATEMENTOF0ROlTAND,OSSRECYCLING
About the
Report
`IN#RORE
Chairman’s Desk
Reserves and Surplus Items of Other Comprehensive Income Total
From the
Insurance %XPORT0ROlT Corporate Social Foreign Currency Monetary Fair value Fair value Cash Flow
Reserve Reserve Responsibility Item Translation Difference of Equity of Debt Hedge
Reserve Account (FCMITDA) Instruments Instruments Reserve
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Description of
Capitals
Board of
Directors’
Report
241.09 53.72 - (35.78) 16,072.20 (43.95) 22.04 99,476.47
Responsibility Report
Chairman $IRECTOR&INANCE Company Secretary
$).
$).
!#3
Business
As per our attached Report of even date
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants Report on Corporate
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O% Governance
0LACE.EW$ELHI
$ATE-AY
Statements
Standalone
statements
182 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
B Capital Stores OF FUTURE ECONOMIC BENElTS EMBODIED IN THE ASSET
ARE CONSIDERED TO MODIFY THE AMORTISATION PERIOD OR
From the
#APITALSTORESAREVALUEDATCOST3PECIlCPROVISIONIS
METHOD AS APPROPRIATE AND ARE TREATED AS CHANGES
MADEFORLIKELYDIMINUTIONINVALUEWHEREVERREQUIRED
INACCOUNTINGESTIMATES4HEAMORTISATIONEXPENSEON
2.3 Intangible Assets INTANGIBLEASSETSWITHlNITELIVESISRECOGNISEDINTHE
3TATEMENTOF0ROlTAND,OSSUNLESSSUCHEXPENDITURE
4ECHNICALKNOW
HOWLICENSEFEERELATINGTOPRODUCTION
About IndianOil
FORMSPARTOFCARRYINGVALUEOFANOTHERASSET
PROCESSANDPROCESSDESIGNARERECOGNIZEDAS)NTANGIBLE
!SSETSANDAMORTIZEDONASTRAIGHTLINEBASISOVERTHE 'AINS OR LOSSES ARISING FROM DERECOGNITION OF AN
LIFEOFTHEUNDERLYINGPLANTFACILITY INTANGIBLEASSETAREMEASUREDASTHEDIFFERENCEBETWEEN
THENETDISPOSALPROCEEDSANDTHECARRYINGAMOUNTOF
%XPENDITURE INCURRED ON 2ESEARCH $EVELOPMENT THEASSETANDARERECOGNISEDINTHE3TATEMENTOF0ROlT
OTHERTHANONCAPITALACCOUNTISCHARGEDTOREVENUE AND,OSSWHENTHEASSETISDERECOGNIZED
Description of
#OSTINCURREDONCOMPUTERSOFTWARELICENSESPURCHASED /N TRANSITION TO )ND !3 THE #OMPANY HAS ELECTED TO
DEVELOPED RESULTING IN FUTURE ECONOMIC BENElTS
Capitals
CONTINUEWITHTHECARRYINGVALUEOFALLOFITS)NTANGIBLE
OTHER THAN SPECIlC SOFTWARE THAT ARE INTEGRAL PART OF !SSETSRECOGNIZEDASAT!PRILMEASUREDASPER
THE RELATED HARDWARE ARE CAPITALISED AS )NTANGIBLE THEPREVIOUS'!!0ANDUSETHATCARRYINGVALUEASTHE
!SSET AND AMORTISED OVER A PERIOD OF THREE YEARS DEEMEDCOSTOFTHE)NTANGIBLE!SSETS
Board of
#OSTOF00%NETOFRESIDUALVALUE EXCLUDINGFREEHOLD
DEVELOPMENTSTAGEOFSUCHSOFTWAREAREACCOUNTEDAS
LANDISDEPRECIATEDONSTRAIGHT
LINEMETHODASPERTHE
h)NTANGIBLE!SSETS5NDER$EVELOPMENTv
USEFULLIFEPRESCRIBEDIN3CHEDULE))TOTHE#OMPANIES
2IGHT OF WAYS WITH INDElNITE USEFUL LIVES ARE NOT !CTEXCEPTINCASEOFTHEFOLLOWINGASSETS
AMORTISED BUT ARE TESTED FOR IMPAIRMENT ANNUALLY
A 5SEFUL LIFE OF YEARS FOR 0LANT AND %QUIPMENT
AT THE CASH
GENERATING UNIT LEVEL 4HE ASSESSMENT
RELATING TO 2ETAIL /UTLETS OTHER THAN STORAGE
Directors’
OF INDElNITE LIFE IS REVIEWED ANNUALLY TO DETERMINE
TANKSANDRELATEDEQUIPMENTS ,0'CYLINDERSAND
Report
WHETHERTHEINDElNITELIFECONTINUESTOBESUPPORTABLE
pressure regulators considered based on technical
)FNOTTHECHANGEINUSEFULLIFEFROMINDElNITETOlNITE
ASSESSMENT
Management’s
CONSIDEREDBASEDONTECHNICALASSESSMENT
ON INITIAL RECOGNITION AT COST 4HE COST OF )NTANGIBLE
Assets acquired in a business combination is their C )NCASEOFSPECIlCAGREEMENTSEGENABLINGASSETS
FAIR VALUE AT THE DATE OF ACQUISITION &OLLOWING INITIAL ETC USEFUL LIFE AS PER AGREEMENT OR 3CHEDULE ))
RECOGNITION )NTANGIBLE !SSETS ARE CARRIED AT COST WHICHEVERISEARLIER
Responsibility Report
less any accumulated amortisation and accumulated
D )NCASEOFCERTAINASSETSOF2$#ENTREUSEFULLIFEIS
IMPAIRMENT LOSSES )NTERNALLY GENERATED INTANGIBLES
CONSIDEREDBASEDONTECHNICALASSESSMENT
EXCLUDING CAPITALISED DEVELOPMENT COST ARE NOT
CAPITALISEDANDTHERELATEDEXPENDITUREISREmECTEDIN
Business
E )N CASE OF IMMOVABLE ASSETS CONSTRUCTED ON
THE3TATEMENTOF0ROlTAND,OSSINTHEPERIODINWHICH LEASEHOLD LAND USEFUL LIFE AS PER 3CHEDULE
)) OR
THEEXPENDITUREISINCURRED LEASE PERIOD OF LAND INCLUDING RENEWABLELIKELY
RENEWABLEPERIOD WHICHEVERISEARLIERAND Report on Corporate
4HEUSEFULLIVESOF)NTANGIBLE!SSETSAREASSESSEDAS
EITHERlNITEORINDElNITE)NTANGIBLE!SSETSWITHlNITE F )N OTHER CASES 3PARE 0ARTS ETC USEFUL LIFE IS
LIVES ARE AMORTISED OVER THE USEFUL ECONOMIC LIFE
Governance
WITH A lNITE USEFUL LIFE ARE REVIEWED AT THE END OF DISPOSAL 2ESIDUAL VALUE IS GENERALLY CONSIDERED
EACH REPORTING PERIOD #HANGES IN THE EXPECTED BETWEEN TO OF COST OF ASSETS EXCEPT IN FEW
Statements
Standalone
statements
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
THE ASSETS RECOVERABLE AMOUNT !N ASSETS RECOVERABLE ASPARTOFTHECOSTOFSUCHASSETS!QUALIFYINGASSETIS
AMOUNT IS THE HIGHER OF AN ASSETS OR CASH
GENERATING ONETHATNECESSARILYTAKESSUBSTANTIALPERIODOFTIMETO
From the
UNITS #'5 FAIR VALUE LESS COST OF DISPOSAL AND ITS GETREADYFORINTENDEDUSE!LLOTHERBORROWINGCOSTSARE
VALUEINUSE2ECOVERABLEAMOUNTISDETERMINEDFORAN RECOGNISED IN THE 3TATEMENT OF 0ROlT AND ,OSS IN THE
INDIVIDUALASSETUNLESSTHEASSETDOESNOTGENERATECASH PERIODINWHICHTHESAMEAREINCURRED
INmOWSTHATARELARGELYINDEPENDENTOFTHOSEFROMOTHER
6. FOREIGN CURRENCY TRANSACTIONS
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ASSETSORGROUPSOFASSETS
6.1 4HE #OMPANYS lNANCIAL STATEMENTS ARE PRESENTED IN
)MPAIRMENTLOSSISRECOGNIZEDWHENTHECARRYINGAMOUNT
)NDIAN2UPEE` WHICHISALSOITSFUNCTIONALCURRENCY
OFANASSETEXCEEDSRECOVERABLEAMOUNT
6.2 4RANSACTIONSINFOREIGNCURRENCYAREINITIALLYRECORDEDAT
)N ASSESSING VALUE IN USE THE ESTIMATED FUTURE CASH
EXCHANGERATESPREVAILINGONTHEDATEOFTRANSACTIONS
mOWS ARE DISCOUNTED TO THEIR PRESENT VALUE USING A
PRE
TAX DISCOUNT RATE THAT REmECTS CURRENT MARKET 6.3 -ONETARYITEMSDENOMINATEDINFOREIGNCURRENCIESSUCH
Description of
ASSESSMENTS OF THE TIME VALUE OF MONEY AND THE RISKS AS CASH RECEIVABLES PAYABLES ETC OUTSTANDING AT THE
Capitals
SPECIlCTOTHEASSET)NDETERMININGFAIRVALUELESSCOST ENDOFREPORTINGPERIODARETRANSLATEDATEXCHANGERATES
OF DISPOSAL RECENT MARKET TRANSACTIONS ARE TAKEN INTO PREVAILINGONTHATDATE
ACCOUNT )F NO SUCH TRANSACTIONS CAN BE IDENTIlED AN
APPROPRIATEVALUATIONMODELISUSED4HESECALCULATIONS 6.4 .ON
MONETARY ITEMS DENOMINATED IN FOREIGN CURRENCY
Board of
4HE #OMPANY BASES ITS IMPAIRMENT CALCULATION ON .ON
MONETARYITEMSMEASUREDATFAIRVALUEINAFOREIGN
DETAILED BUDGETS AND FORECAST CALCULATIONS WHICH ARE CURRENCYARETRANSLATEDUSINGTHEEXCHANGERATESATTHE
PREPARED SEPARATELY FOR EACH OF THE #OMPANYS #'5S DATEWHENTHEFAIRVALUEISDETERMINED4HEGAINORLOSS
TO WHICH THE INDIVIDUAL ASSETS ARE ALLOCATED 4HESE ARISING ON TRANSLATION OF NON
MONETARY ITEMS MEASURED
BUDGETS AND FORECAST CALCULATIONS GENERALLY COVER A ATFAIRVALUEISTREATEDINLINEWITHTHERECOGNITIONOFTHE
Directors’
PERIOD OF YEARS &OR LONGER PERIODS A LONG
TERM GAINORLOSSONTHECHANGEINFAIRVALUEOFTHEITEMIE
Report
GROWTH RATE IS CALCULATED AND APPLIED TO PROJECT FUTURE TRANSLATIONDIFFERENCESONITEMSWHOSEFAIRVALUEGAINOR
CASHmOWSAFTERTHElFTEENTHYEAR4OESTIMATECASHmOW LOSSISRECOGNISEDIN/THER#OMPREHENSIVE)NCOME/#)
Management’s
PROJECTIONS IN THE BUDGET USING A STEADY OR DECLINING 6.5 A !NY GAINS OR LOSSES ARISING DUE TO DIFFERENCES IN
GROWTH RATE FOR SUBSEQUENT YEARS UNLESS AN INCREASING EXCHANGERATESATTHETIMEOFTRANSLATIONORSETTLEMENT
RATECANBEJUSTIlED AREACCOUNTEDFORINTHE3TATEMENTOF0ROlTAND,OSS
&OR ASSETS EXCLUDING GOODWILL AN ASSESSMENT IS MADE EITHER UNDER THE HEAD FOREIGN EXCHANGE mUCTUATION
Responsibility Report
ATEACHREPORTINGDATETODETERMINEWHETHERTHEREISAN OR INTEREST COST AS THE CASE MAY BE EXCEPT THOSE
indication that previously recognised impairment losses RELATING TO LONG
TERM FOREIGN CURRENCY LOANS AS
NO LONGER EXIST OR HAVE DECREASED )F SUCH INDICATION MENTIONEDIN0ARAB I BELOW
Business
EXISTS THE #OMPANY ESTIMATES THE ASSETS OR #'5S B I %XCHANGE DIFFERENCES PERTAINING TO LONG TERM
RECOVERABLEAMOUNT!PREVIOUSLYRECOGNISEDIMPAIRMENT FOREIGNCURRENCYLOANSOBTAINEDORRE
lNANCEDON
LOSSISREVERSEDONLYIFTHEREHASBEENACHANGEINTHE ORBEFORE-ARCH
ASSUMPTIONS USED TO DETERMINE THE ASSETS RECOVERABLE Report on Corporate
"ORROWINGCOSTSTHATAREATTRIBUTABLETOTHEACQUISITION
OR CONSTRUCTION OF THE QUALIFYING ASSET ARE CAPITALIZED
186 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
A A PROVISION IS RECOGNIZED IN RESPECT OF PRESENT 9.2 2EVENUE FROM THE SALE OF PETROLEUM PRODUCTS
OBLIGATIONS WHERE THE OUTmOW OF RESOURCES IS PETROCHEMICALPRODUCTSCRUDEANDGASARERECOGNISEDAT
From the
PROBABLEASPERABOVE APOINTINTIMEGENERALLYUPONDELIVERYOFTHEPRODUCTS
4HE#OMPANYRECOGNIZESREVENUEOVERTIMEUSINGINPUT
B ALLOTHERCASESAREDISCLOSEDASCONTINGENTLIABILITIES
METHOD ON THE BASIS OF TIME ELAPSED IN CASE OF NON
UNLESS THE POSSIBILITY OF OUTmOW OF RESOURCES IS
REFUNDABLEDEPOSITSFROMDEALERSANDSERVICECONTRACTS
REMOTE
About IndianOil
)NCASEOFCONSTRUCTIONCONTRACTSREVENUEANDCOSTARE
#ONTINGENT LIABILITIES ARE POSSIBLE OBLIGATIONS THAT recognised by measuring the contract progress using
ARISE FROM PAST EVENTS AND WHOSE EXISTENCE WILL ONLY input method by comparing the cost incurred and total
BECONlRMEDBYTHEOCCURRENCEORNON
OCCURRENCEOF CONTRACTCOST
ONEORMOREFUTUREEVENTSNOTWHOLLYWITHINTHECONTROL
9.3 4HE#OMPANYHASASSUMEDTHATRECOVERYOFEXCISEDUTY
OF THE #OMPANY 7HERE IT IS NOT PROBABLE THAT AN
mOWSTOTHE#OMPANYONITSOWNACCOUNT4HISISFORTHE
OUTmOW OF ECONOMIC BENElTS WILL BE REQUIRED OR THE
Description of
REASON THAT IT IS A LIABILITY OF THE MANUFACTURER WHICH
AMOUNT CANNOT BE ESTIMATED RELIABLY THE OBLIGATION
FORMS PART OF THE COST OF PRODUCTION IRRESPECTIVE OF
Capitals
IS DISCLOSED AS A CONTINGENT LIABILITY #ONTINGENT
WHETHER THE GOODS ARE SOLD OR NOT 3INCE THE RECOVERY
LIABILITIES ARE DISCLOSED ON THE BASIS OF JUDGMENT OF
OFEXCISEDUTYmOWSTOTHE#OMPANYONITSOWNACCOUNT
THE MANAGEMENTINDEPENDENT EXPERTS AND REVIEWED
REVENUEINCLUDESEXCISEDUTY
AT EACH BALANCE SHEET DATE TO REmECT THE CURRENT
Board of
ONCAPITALACCOUNTARECONSIDEREDFORDISCLOSURE
ADDED TO THE COMMODITYBY THE SELLERON BEHALFOFTHE
! CONTINGENT ASSET IS DISCLOSED WHERE AN INmOW OF GOVERNMENT!CCORDINGLYITISEXCLUDEDFROMREVENUE
ECONOMICBENElTSISPROBABLE
9.4 Variable consideration
9. REVENUE FROM CONTRACTS WITH CUSTOMERS
)F THE CONSIDERATION IN A CONTRACT INCLUDES A VARIABLE
Directors’
4HE#OMPANYISINTHEBUSINESSOFOILANDGASOPERATIONS AMOUNT THE #OMPANY ESTIMATES THE AMOUNT OF
Report
AND IT EARNS REVENUE PRIMARILY FROM SALE OF PETROLEUM CONSIDERATION TO WHICH IT WILL BE ENTITLED IN EXCHANGE
PRODUCTS AND PETROCHEMICAL PRODUCTS )N ADDITION THE FORTRANSFERRINGTHEGOODSTOTHECUSTOMER4HEVARIABLE
consideration is estimated at contract inception and
Management’s
REVENUE REVERSAL IN THE AMOUNT OF CUMULATIVE REVENUE
2EVENUE IS RECOGNISED WHEN CONTROL OF THE GOODS OR RECOGNISEDWILLNOTOCCURWHENTHEASSOCIATEDUNCERTAINTY
SERVICESARETRANSFERREDTOTHECUSTOMERATANAMOUNTTHAT WITHTHEVARIABLECONSIDERATIONISSUBSEQUENTLYRESOLVED
REmECTSTHECONSIDERATIONTOWHICHTHE#OMPANYEXPECTS
TO BE ENTITLED IN EXCHANGE FOR THOSE GOODS OR SERVICES 4HE #OMPANY PROVIDES VOLUME REBATES TO CERTAIN
CUSTOMERS ONCE THE QUANTITY OF PRODUCTS PURCHASED
Responsibility Report
Revenue is measured based on the consideration
SPECIlED IN A CONTRACT WITH A CUSTOMER AND EXCLUDES DURING THE PERIOD EXCEEDS A THRESHOLD SPECIlED IN THE
AMOUNTSCOLLECTEDONBEHALFOFTHIRDPARTIES CONTRACT2EBATESAREOFFSETAGAINSTAMOUNTSPAYABLEBY
THE CUSTOMER 4HE VOLUME REBATES#ASH DISCOUNT GIVE
Business
4HE #OMPANY HAS GENERALLY CONCLUDED THAT IT IS THE RISE TO VARIABLE CONSIDERATION 4O ESTIMATE THE VARIABLE
PRINCIPAL IN ITS REVENUE ARRANGEMENTS EXCEPT A FEW CONSIDERATION FOR THE EXPECTED FUTURE REBATESCASH
AGENCYSERVICESBECAUSEITTYPICALLYCONTROLSTHEGOODS DISCOUNT THE #OMPANY APPLIES THE MOST LIKELY AMOUNT Report on Corporate
ORSERVICESBEFORETRANSFERRINGTHEMTOTHECUSTOMER METHODFORCONTRACTSWITHASINGLE
VOLUMETHRESHOLDAND
4HE#OMPANYCONSIDERSWHETHERTHEREAREOTHERPROMISES THEEXPECTEDVALUEMETHODFORCONTRACTSWITHMORETHAN
Governance
#OMPANYCONSIDERSTHEEFFECTSOFVARIABLECONSIDERATION REFUNDLIABILITYFORTHEEXPECTEDFUTUREREBATES
THEEXISTENCEOFSIGNIlCANTlNANCINGCOMPONENTSNON
cash consideration and consideration payable to the
Statements
Standalone
statements
CUSTOMERIFANY
188 Indian Oil Corporation Limited 2nd Integrated Annual Report
$EFERREDTAXLIABILITIESARERECOGNISEDFORALLTAXABLE A 4HE#OMPANYSCONTRIBUTIONTOTHE0ROVIDENT&UND
TEMPORARY DIFFERENCES EXCEPT WHEN THE DEFERRED IS REMITTED TO SEPARATE TRUSTS ESTABLISHED FOR THIS
TAX LIABILITY ARISES FROM THE INITIAL RECOGNITION OF PURPOSEBASEDONAlXEDPERCENTAGEOFTHEELIGIBLE
GOODWILLORANASSETORLIABILITYINATRANSACTIONTHAT EMPLOYEES SALARY AND CHARGED TO THE 3TATEMENT
ISNOTABUSINESSCOMBINATIONANDATTHETIMEOFTHE OF 0ROlT AND ,OSS#7)0 3HORTFALL IF ANY IN THE
TRANSACTION AFFECTS NEITHER THE ACCOUNTING PROlT OR FUND ASSETS BASED ON THE 'OVERNMENT SPECIlED
LOSSNORTAXABLEPROlTORLOSS MINIMUM RATE OF RETURN IS MADE GOOD BY THE
#OMPANY AND CHARGED TO THE 3TATEMENT OF 0ROlT
AND,OSS#7)0
60th Annual Report 2018-19 189
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
B 4HE #OMPANY OPERATES DElNED BENElT PLANS 13. GRANTS
FOR 'RATUITY 0OST 2ETIREMENT -EDICAL "ENElTS
From the
13.1 'OVERNMENT GRANTS ARE RECOGNISED WHERE THERE IS
2ESETTLEMENT &ELICITATION 3CHEME %X
GRATIA AND
REASONABLE ASSURANCE THAT THE GRANT WILL BE RECEIVED
!/$ PENSION FUND 4HE COST OF PROVIDING SUCH
ANDALLATTACHEDCONDITIONSWILLBECOMPLIEDWITH
DElNEDBENElTSISDETERMINEDUSINGTHEPROJECTED
UNIT CREDIT METHOD OF ACTUARIAL VALUATION MADE AT 13.2 Grant relating to Assets (Capital Grants)
About IndianOil
THE END OF THE YEAR /UT OF THESE PLANS 'RATUITY
0OST2ETIREMENT-EDICAL"ENElTSAND!/$PENSION )NCASEOFGRANTSRELATINGTODEPRECIABLEASSETSTHECOST
FUNDAREADMINISTEREDTHROUGHRESPECTIVE4RUSTS OF THE ASSET IS SHOWN AT GROSS VALUE AND GRANT THEREON
IS TREATED AS $EFERRED INCOME WHICH ARE RECOGNIZED AS
C /BLIGATIONS ON OTHER LONG TERM EMPLOYEE BENElTS INCOME IN THE 3TATEMENT OF 0ROlT AND ,OSS OVER THE
VIZLEAVEENCASHMENTAND,ONG3ERVICE!WARDSARE PERIOD AND IN THE PROPORTION IN WHICH DEPRECIATION IS
PROVIDEDUSINGTHEPROJECTEDUNITCREDITMETHODOF CHARGED
ACTUARIALVALUATIONMADEATTHEENDOFTHEYEAR/UT
Description of
OFTHESEOBLIGATIONSLEAVEENCASHMENTOBLIGATIONS 13.3 Grant related to Income (Revenue Grants)
Capitals
ARE FUNDED THROUGH QUALIFYING INSURANCE POLICIES
2EVENUEGRANTSARERECOGNISEDINTHE3TATEMENTOF0ROlT
MADEWITHINSURANCECOMPANIESCORPORATION
AND,OSSONASYSTEMATICBASISOVERTHEPERIODSINWHICH
D 4HE#OMPANYALSO OPERATES ADElNEDCONTRIBUTION THE ENTITY RECOGNISES AS EXPENSES THE RELATED COST FOR
Board of
ARE RECKONED IN h2EVENUE FROM /PERATIONSv AS PER
0AYMENTS MADE UNDER 6OLUNTARY 2ETIREMENT 3CHEME SCHEMES NOTIlED BY 'OVERNMENT FROM TIME TO TIME
ARE CHARGED TO THE 3TATEMENT OF 0ROlT AND ,OSS ON SUBJECTTOlNALADJUSTMENTSWHEREVERAPPLICABLE
INCURRENCE 4HE #OMPANY HAS TREATED WAIVER OF DUTY UNDER %0#'
12.4 Remeasurements 3CHEME AS REVENUE GRANT AS THE CONDITION OF MEETING
THEEXPORTOBLIGATIONSISAPRIMARYCONDITIONOFAVAILING
Directors’
2EMEASUREMENTS COMPRISING OF ACTUARIAL GAINS AND THE GRANT AS PER THE %0#' 3CHEME 4HE ABOVE GRANT
Report
LOSSES THE EFFECT OF THE ASSET CEILING EXCLUDING is set up by recording the assets at gross value and
AMOUNTS INCLUDED IN NET INTEREST ON THE NET DElNED CORRESPONDING GRANT AMOUNT AS DEFERRED INCOME 3UCH
Management’s
BENElT LIABILITY ARE RECOGNISED IMMEDIATELY IN THE THEACCOUNTINGPERIOD
"ALANCE 3HEET WITH A CORRESPONDING DEBIT OR CREDIT TO
retained earnings through Other Comprehensive Income 2EVENUE GRANTS ARE GENERALLY RECORDED UNDER h/THER
/#) IN THE PERIOD IN WHICH IT OCCUR 2EMEASUREMENTS /PERATING2EVENUESvEXCEPTSOMEGRANTSWHICHMAINLY
ARENOTRECLASSIlEDTOPROlTORLOSSINSUBSEQUENTPERIODS INCLUDESNORTHEASTEXCISEDUTYANDENTRYTAXEXEMPTION
Responsibility Report
2EMEASUREMENTS IN RESPECT OF OTHER LONG TERM BENElTS WHICHARENETTEDOFFWITHTHERELATEDEXPENSE
ARERECOGNISEDINTHE3TATEMENTOF0ROlTAND,OSS 13.4 When loans or similar assistance are provided by
Business
0ASTSERVICECOSTARERECOGNISEDINPROlTORLOSSONTHE GOVERNMENTS OR RELATED INSTITUTIONS WITH AN INTEREST
EARLIEROF RATE BELOW THE CURRENT APPLICABLE MARKET RATE OR .),
INTEREST RATE THE EFFECT OF THIS FAVOURABLE INTEREST IS
• 4HEDATEOFTHEPLANAMENDMENTORCURTAILMENTAND REGARDEDASAGOVERNMENTGRANT4HELOANORASSISTANCE Report on Corporate
• 4HE DATE THAT THE #OMPANY RECOGNISES RELATED IS INITIALLY RECOGNISED AND MEASURED AT FAIR VALUE AND
restructuring cost THE GOVERNMENT GRANT IS MEASURED AS THE DIFFERENCE
Governance
.ETINTERESTISCALCULATEDBYAPPLYINGTHEDISCOUNT BETWEEN THE INITIAL CARRYING VALUE OF THE LOAN AND
RATETOTHENETDElNEDBENElTLIABILITYORASSET4HE THE PROCEEDS RECEIVED 4HE LOAN IS SUBSEQUENTLY
#OMPANY RECOGNISES THE FOLLOWING CHANGES IN THE measured as per the accounting policy applicable to
NETDElNEDBENElTOBLIGATIONASANEXPENSEINTHE lNANCIALLIABILITIES#LASSIlCATIONOFTHEGRANTISMADE
Financial financial
3TATEMENTOF0ROlTAND,OSS CONSIDERING THE TERMS AND CONDITION OF THE GRANT IE
WHETHERGRANTSRELATESTOASSETSOROTHERWISE
• SERVICE COST COMPRISING CURRENT SERVICE COST PAST
Statements
Standalone
statements
SERVICECOSTGAINSANDLOSSESONCURTAILMENTSAND
NON
ROUTINESETTLEMENTSAND
• .ETINTERESTEXPENSEORINCOME
190 Indian Oil Corporation Limited 2nd Integrated Annual Report
EXPLORATORYDRILLINGCOST • %XPECTED TO BE REALISED OR INTENDED TO BE SOLD OR
consumed in normal operating cycle
#OST OF 3URVEY AND PROSPECTING ACTIVITIES CONDUCTED IN
THE SEARCH OF OIL AND GAS ARE EXPENSED AS EXPLORATION • (ELDPRIMARILYFORTHEPURPOSEOFTRADING
COSTINTHEYEARINWHICHTHESEAREINCURRED • %XPECTEDTOBEREALISEDWITHINTWELVEMONTHSAFTER
THEREPORTINGPERIODOR
)F THE PROJECT IS NOT VIABLE BASED UPON TECHNICAL
FEASIBILITYANDCOMMERCIALVIABILITYSTUDYTHENALLCOST • #ASH OR #ASH %QUIVALENTS UNLESS RESTRICTED FROM
RELATING TO %XPLORATORY 7ELLS ARE EXPENSED IN THE YEAR BEINGEXCHANGEDORUSEDTOSETTLEALIABILITYFORAT
WHENDETERMINEDTOBEDRY LEASTTWELVEMONTHSAFTERTHEREPORTINGPERIOD
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
SALEINITSPRESENTCONDITIONSUBJECTONLYTOTERMSTHAT Financial Assets at Amortised Cost
AREUSUALANDCUSTOMARYFORSALESORDISPOSALGROUPS
From the
!&INANCIAL!SSETSISMEASUREDATTHEAMORTISEDCOSTIF
ITSSALEISHIGHLYPROBABLEANDITWILLGENUINELYBESOLD
BOTHTHEFOLLOWINGCONDITIONSAREMET
NOTABANDONED4HE#OMPANYTREATSSALEOFTHEASSETOR
DISPOSALGROUPTOBEHIGHLYPROBABLEWHEN A 4HE ASSET IS HELD WITHIN A BUSINESS MODEL WHOSE
OBJECTIVEISTOHOLDASSETSFORCOLLECTINGCONTRACTUAL
• 4HEAPPROPRIATELEVELOFMANAGEMENTISCOMMITTED
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CASHmOWSAND
TOAPLANTOSELLTHEASSETORDISPOSALGROUP
B #ONTRACTUALTERMSOFTHEASSETGIVERISEONSPECIlED
• An active programme to locate a buyer and complete
DATES TO CASH mOWS THAT ARE SOLELY PAYMENTS OF
THEPLANHASBEENINITIATEDIFAPPLICABLE
PRINCIPAL AND INTEREST 300) ON THE PRINCIPAL
• 4HE ASSET OR DISPOSAL GROUP IS BEING ACTIVELY AMOUNTOUTSTANDING
MARKETED FOR SALE AT A PRICE THAT IS REASONABLE IN
!FTERINITIALMEASUREMENTSUCH&INANCIAL!SSETSARE
Description of
RELATIONTOITSCURRENTFAIRVALUE
subsequently measured at amortised cost using the
Capitals
• 4HE SALE IS EXPECTED TO QUALIFY FOR RECOGNITION AS EFFECTIVEINTERESTRATE%)2 METHOD!MORTISEDCOST
ACOMPLETEDSALEWITHINONEYEARFROMTHEDATEOF IS CALCULATED BY TAKING INTO ACCOUNT ANY DISCOUNT
CLASSIlCATIONAND ORPREMIUMONACQUISITIONANDFEESORCOSTTHATARE
Board of
INTHEPROlTORLOSS4HISCATEGORYGENERALLYAPPLIES
16.3.ON
#URRENT !SSETS HELD FOR SALE AND DISPOSAL GROUPS TOTRADEANDOTHERRECEIVABLES
AREMEASUREDATTHELOWEROFTHEIRCARRYINGAMOUNTAND
Debt Instrument at FVTOCI
THE FAIR VALUE LESS COST TO SELL !SSETS AND LIABILITIES
CLASSIlED AS HELD FOR SALE ARE PRESENTED SEPARATELY IN !@$EBT)NSTRUMENTISCLASSIlEDASATTHE&64/#)IFBOTH
THE"ALANCE3HEET OFTHEFOLLOWINGCRITERIAAREMET
Directors’
00% AND )NTANGIBLE !SSETS ONCE CLASSIlED AS HELD FOR A 4HE OBJECTIVE OF THE BUSINESS MODEL IS ACHIEVED
Report
SALEARENOTDEPRECIATEDORAMORTIZED BOTHBYCOLLECTINGCONTRACTUALCASHmOWSANDSELLING
THElNANCIALASSETSAND
Management’s
PAYMENTSOFPRINCIPALANDINTEREST300)
AlNANCIALASSETOFONEENTITYANDAlNANCIALLIABILITYOR
EQUITYINSTRUMENTOFANOTHERENTITY $EBT )NSTRUMENTS INCLUDED WITHIN THE &64/#)
CATEGORY ARE MEASURED INITIALLY AS WELL AS AT EACH
17.1 Financial Assets
REPORTINGDATEATFAIRVALUE&AIR6ALUEMOVEMENTS
Responsibility Report
Initial recognition and measurement ARERECOGNIZEDINTHE/THER#OMPREHENSIVE)NCOME
/#) (OWEVER THE #OMPANY RECOGNIZES INTEREST
!LL&INANCIAL!SSETSARERECOGNISEDINITIALLYATFAIRVALUE INCOMEIMPAIRMENTLOSSESREVERSALSANDFOREIGN
PLUSINTHECASEOFlNANCIALASSETSNOTRECORDEDATFAIR
Business
EXCHANGEGAINORLOSSINTHE3TATEMENTOF0ROlTAND
VALUE THROUGH PROlT OR LOSS TRANSACTION COST THAT ARE ,OSS/NDERECOGNITIONOFTHEASSETCUMULATIVEGAIN
ATTRIBUTABLETOTHEACQUISITIONOFTHE&INANCIAL!SSET OR LOSS PREVIOUSLY RECOGNISED IN /#) IS RECLASSIlED
Subsequent measurement FROM THE %QUITY TO THE 3TATEMENT OF 0ROlT AND Report on Corporate
,OSS )NTEREST EARNED WHILST HOLDING &64/#) $EBT
&OR PURPOSES OF SUBSEQUENT MEASUREMENT &INANCIAL Instrument is reported as interest income using the
Governance
!SSETSARECLASSIlEDINFOURCATEGORIES %)2METHOD
• &INANCIAL!SSETSATAMORTISEDCOST Equity Instrument
• $EBT )NSTRUMENTS AT FAIR VALUE THROUGH /THER
A. Equity Investments at FVTOCI (Other than Subsidiaries,
#OMPREHENSIVE)NCOME&64/#)
Financial financial
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
ENTITYREVERTSTORECOGNISINGIMPAIRMENTLOSSALLOWANCE GUARANTEECONTRACTSANDDERIVATIVElNANCIALINSTRUMENTS
BASEDON
MONTHS%#,
From the
Subsequent measurement
,IFETIME %#, ARE THE EXPECTED CREDIT LOSSES RESULTING
4HE MEASUREMENT OF lNANCIAL LIABILITIES DEPENDS ON
FROMALLPOSSIBLEDEFAULTEVENTSOVERTHEEXPECTEDLIFEOF
THEIRCLASSIlCATIONASDESCRIBEDBELOW
AlNANCIALINSTRUMENT4HE
MONTHS%#,ISAPORTION
OF THE LIFETIME %#, WHICH RESULTS FROM DEFAULT EVENTS ! &INANCIAL,IABILITIESATFAIRVALUETHROUGHPROlTORLOSS
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THAT ARE POSSIBLE WITHIN MONTHS AFTER THE REPORTING
DATE &INANCIAL ,IABILITIES AT FAIR VALUE THROUGH PROlT OR
LOSS INCLUDE lNANCIAL ,IABILITIES HELD FOR TRADING AND
!SAPRACTICALEXPEDIENTTHE#OMPANYUSESAPROVISION lNANCIAL LIABILITIES DESIGNATED UPON INITIAL RECOGNITION
MATRIX TO DETERMINE IMPAIRMENT LOSS ALLOWANCE ON ASATFAIRVALUETHROUGHTHE3TATEMENTOF0ROlTAND,OSS
PORTFOLIOOFITSTRADERECEIVABLES4HEPROVISIONMATRIXIS &INANCIAL ,IABILITIES ARE CLASSIlED AS HELD FOR TRADING
BASEDONITSHISTORICALLYOBSERVEDDEFAULTRATESOVERTHE IF THEY ARE INCURRED FOR THE PURPOSE OF REPURCHASING IN
Description of
EXPECTED LIFE OF THE TRADE RECEIVABLES AND IS ADJUSTED THE NEAR TERM 4HIS CATEGORY ALSO INCLUDES DERIVATIVE
Capitals
FOR FORWARD
LOOKING ESTIMATES !T EVERY REPORTING DATE lNANCIALINSTRUMENTSENTEREDINTOBYTHE#OMPANYTHAT
THE HISTORICAL OBSERVED DEFAULT RATES ARE UPDATED AND are not designated as hedging instruments in hedge
CHANGESINTHEFORWARD
LOOKINGESTIMATESAREANALYSED RELATIONSHIPSASDElNEDBY)ND!3
/NTHATBASISTHE#OMPANYESTIMATESPROVISIONONTRADE
Board of
DURING THE PERIOD IS RECOGNIZED AS EXPENSEINCOME B. Financial liabilities at amortized cost
IN THE 3TATEMENT OF 0ROlT AND ,OSS 4HE "ALANCE &INANCIAL,IABILITIESTHATARENOTHELD
FOR
TRADINGANDARE
3HEET PRESENTATION FOR VARIOUS lNANCIAL INSTRUMENTS IS NOTDESIGNATEDASAT&640,AREMEASUREDATAMORTISED
DESCRIBEDBELOW COST AT THE END OF SUBSEQUENT ACCOUNTING PERIODS
• &INANCIAL !SSETS MEASURED AS AT AMORTISED COST 4HE CARRYING AMOUNTS OF lNANCIAL LIABILITIES THAT ARE
subsequently measured at amortised cost are determined
Directors’
%#, IS PRESENTED AS AN ALLOWANCE IE AS AN
BASEDONTHEEFFECTIVEINTERESTMETHOD'AINSANDLOSSES
Report
INTEGRAL PART OF THE MEASUREMENT OF THOSE ASSETS
IN THE "ALANCE 3HEET 4HE ALLOWANCE REDUCES THE ARERECOGNISEDINTHE3TATEMENTOF0ROlTAND,OSSWHEN
NETCARRYINGAMOUNT5NTILTHEASSETMEETSWRITE
OFF THE LIABILITIES ARE DERECOGNISED AS WELL AS THROUGH THE
Management’s
ALLOWANCEFROMTHEGROSSCARRYINGAMOUNT !MORTISEDCOSTISCALCULATEDBYTAKINGINTOACCOUNTANY
• &INANCIAL'UARANTEECONTRACTS%#,ISPRESENTEDAS DISCOUNTORPREMIUMONACQUISITIONANDFEESORCOSTTHAT
APROVISIONINTHE"ALANCE3HEETIEASALIABILITY AREANINTEGRALPARTOFTHE%)24HE%)2AMORTISATIONIS
INCLUDEDASlNANCECOSTSINTHE3TATEMENTOF0ROlTAND
• $EBT INSTRUMENTS MEASURED AT &64/#) 3INCE ,OSS
Responsibility Report
lNANCIAL ASSETS ARE ALREADY REmECTED AT FAIR VALUE
IMPAIRMENT ALLOWANCE IS NOT FURTHER REDUCED FROM C. Financial Guarantee Contracts
ITS VALUE 2ATHER %#, AMOUNT IS PRESENTED AS &INANCIAL GUARANTEE CONTRACTS ISSUED BY THE #OMPANY
Business
@ACCUMULATEDIMPAIRMENTAMOUNTINTHE/#) are those contracts that require a payment to be made
17.2 Financial Liabilities TOREIMBURSETHEHOLDERFORALOSSITINCURSBECAUSETHE
SPECIlED DEBTOR FAILS TO MAKE THE PAYMENT WHEN DUE Report on Corporate
Initial recognition and measurement. IN ACCORDANCE WITH THE TERMS OF A DEBT INSTRUMENT
&INANCIALGUARANTEECONTRACTSARERECOGNISEDINITIALLYAS
&INANCIAL,IABILITIESARECLASSIlEDATINITIALRECOGNITION
Governance
ALIABILITYATFAIRVALUEADJUSTEDFORTRANSACTIONCOSTTHAT
ASlNANCIALLIABILITIESATFAIRVALUETHROUGHPROlTORLOSS
AREDIRECTLYATTRIBUTABLETOTHEISSUANCEOFTHEGUARANTEE
ANDlNANCIALLIABILITIESATAMORTISEDCOSTASAPPROPRIATE
3UBSEQUENTLY THE LIABILITY IS MEASURED AT THE HIGHER
!LL &INANCIAL ,IABILITIES ARE RECOGNISED INITIALLY AT FAIR OF THE AMOUNT OF LOSS ALLOWANCE DETERMINED AS PER
VALUEANDINTHECASEOFLIABILITIESMEASUREDATAMORTISED IMPAIRMENTREQUIREMENTSOF)ND!3ANDTHEAMOUNT
Financial financial
COSTNETOFDIRECTLYATTRIBUTABLETRANSACTIONCOST RECOGNISEDLESSCUMULATIVEAMORTISATION
Statements
Standalone
statements
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
LONGER EXPECTED TO OCCUR THE CUMULATIVE GAIN OR LOSS THE ASSET OR LIABILITY OR )N THE ABSENCE OF A PRINCIPAL
ACCUMULATEDINEQUITYISTRANSFERREDTOTHE3TATEMENTOF MARKETINTHEMOSTADVANTAGEOUSMARKETFORTHEASSET
From the
0ROlTAND,OSS OR LIABILITY 4HE PRINCIPAL OR THE MOST ADVANTAGEOUS
MARKETMUSTBEACCESSIBLEBYTHE#OMPANY
(EDGE ACCOUNTING IS DISCONTINUED WHEN THE HEDGING
INSTRUMENT EXPIRES OR IS SOLD TERMINATED OR NO LONGER 20.34HE FAIR VALUE OF AN ASSET OR A LIABILITY IS MEASURED
QUALIlESFORHEDGEACCOUNTING USINGTHEASSUMPTIONSTHATMARKETPARTICIPANTSWOULD
About IndianOil
USE WHEN PRICING THE ASSET OR LIABILITY ASSUMING THAT
Derivatives that are not designated as hedge
MARKETPARTICIPANTSACTINTHEIRECONOMICBESTINTEREST
instrument
20.4!FAIRVALUEMEASUREMENTOFANON
lNANCIALASSETTAKES
4HE#OMPANYENTERSINTOCERTAINDERIVATIVECONTRACTSTO
INTOACCOUNTAMARKETPARTICIPANTSABILITYTOGENERATE
HEDGE RISKS WHICH ARE NOT DESIGNATED AS HEDGES 3UCH
ECONOMICBENElTSBYUSINGTHEASSETINITSHIGHESTAND
CONTRACTS ARE ACCOUNTED FOR AT FAIR VALUE THROUGH THE
BESTUSEORBYSELLINGITTOANOTHERMARKETPARTICIPANT
Description of
3TATEMENT OF 0ROlT AND ,OSS AND ARE INCLUDED IN THE
THATWOULDUSETHEASSETINITSHIGHESTANDBESTUSE
/THER)NCOMEOR/THER%XPENSESAS'AINON$ERIVATIVES
Capitals
OR,OSSON$ERIVATIVESRESPECTIVELY 20.54HE #OMPANY USES VALUATION TECHNIQUES THAT ARE
APPROPRIATE IN THE CIRCUMSTANCES AND FOR WHICH
17.6 Commodity Contracts
SUFlCIENT DATA ARE AVAILABLE TO MEASURE FAIR VALUE
Board of
20.6 !LLASSETSANDLIABILITIESFORWHICHFAIRVALUEISMEASURED
EXPECTEDPURCHASESALEORUSAGEREQUIREMENTSAREHELD
ORDISCLOSEDINTHElNANCIALSTATEMENTSARECATEGORISED
ATCOST
WITHIN THE FAIR VALUE HIERARCHY DESCRIBED AS FOLLOWS
18. CASH AND CASH EQUIVALENTS BASEDONTHELOWESTLEVELINPUTTHATISSIGNIlCANTTOTHE
FAIRVALUEMEASUREMENTASAWHOLE
Cash and Cash Equivalents in the Balance Sheet
COMPRISE CASH AT BANKS AND ON HAND AND SHORT
TERM ,EVEL1UOTEDUNADJUSTED MARKETPRICESINACTIVE
Directors’
DEPOSITS WITH AN ORIGINAL MATURITY OF THREE MONTHS OR MARKETSFORIDENTICALASSETSORLIABILITIES
Report
LESSWHICHARESUBJECTTOANINSIGNIlCANTRISKOFCHANGES
,EVEL 6ALUATION TECHNIQUES FOR WHICH THE
INVALUE
Management’s
0URSUANTTOSCHEMEOFAMALGAMATION)/#3HARES4RUST ,EVEL 6ALUATION TECHNIQUES FOR WHICH THE
HASBEENSETUPBY)/#,FORHOLDINGTREASURYSHARESIN LOWEST LEVEL INPUT THAT IS SIGNIlCANT TO THE FAIR VALUE
RELATIONTO)"0AND"20,MERGERS4HESHARESHELDBY measurement is unobservable
)/#3HARES4RUSTARETREATEDASTREASURYSHARES
&OR ASSETS AND LIABILITIES THAT ARE RECOGNISED IN THE
Responsibility Report
/WN EQUITY INSTRUMENTS THAT ARE REACQUIRED TREASURY lNANCIALSTATEMENTSONARECURRINGBASISTHE#OMPANY
SHARES ARERECOGNISEDATCOSTANDDEDUCTEDFROMEQUITY DETERMINES WHETHER TRANSFERS HAVE OCCURRED BETWEEN
.OGAINORLOSSISRECOGNISEDINTHE3TATEMENTOF0ROlT LEVELS IN THE HIERARCHY BY RE
ASSESSING CATEGORISATION
Business
AND,OSSONTHEPURCHASESALEISSUEORCANCELLATIONOF BASEDONTHELOWESTLEVELINPUTTHATISSIGNIlCANTTOTHE
THE#OMPANYSOWNEQUITYINSTRUMENTS FAIRVALUEMEASUREMENTASAWHOLE ATTHEENDOFEACH
REPORTINGPERIOD
20. FAIR VALUE MEASUREMENT Report on Corporate
)NCASEOF,EVELVALUATIONSEXTERNALVALUERSAREALSO
20.14HE#OMPANYMEASURESlNANCIALINSTRUMENTSSUCHAS INVOLVED IN SOME CASES FOR VALUATION OF ASSETS AND
Governance
LIABILITY TAKES PLACE EITHER IN THE PRINCIPAL MARKET FOR EXPLAINEDABOVE
196 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
SPECIlCALLYINCLUDEREQUIREMENTSRELATINGTOINTERESTAND • $ETERMINE NET INTEREST FOR THE REMAINDER OF THE
PENALTIESASSOCIATEDWITHUNCERTAINTAXTREATMENTS PERIOD AFTER THE PLAN AMENDMENT CURTAILMENT OR
From the
SETTLEMENT USING THE NET DElNED BENElT LIABILITY
4HEAPPENDIXSPECIlCALLYADDRESSESTHEFOLLOWING
ASSET REmECTING THE BENElTS OFFERED UNDER THE
• 7HETHERANENTITYCONSIDERSUNCERTAINTAXTREATMENTS PLANANDTHEPLANASSETSAFTERTHATEVENTANDTHE
separately DISCOUNT RATE USED TO REMEASURE THAT NET DElNED
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BENElTLIABILITYASSET
• 4HE ASSUMPTIONS AN ENTITY MAKES ABOUT THE
EXAMINATIONOFTAXTREATMENTSBYTAXATIONAUTHORITIES 4HE AMENDMENTS ALSO CLARIFY THAT AN ENTITY lRST
DETERMINES ANY PAST SERVICE COST OR A GAIN OR LOSS ON
• (OW AN ENTITY DETERMINES TAXABLE PROlT TAX LOSS SETTLEMENT WITHOUT CONSIDERING THE EFFECT OF THE ASSET
TAXBASESUNUSEDTAXLOSSESUNUSEDTAXCREDITSAND CEILING 4HIS AMOUNT IS RECOGNISED IN PROlT OR LOSS !N
TAXRATES ENTITY THEN DETERMINES THE EFFECT OF THE ASSET CEILING
Description of
• (OW AN ENTITY CONSIDERS CHANGES IN FACTS AND AFTER THE PLAN AMENDMENT CURTAILMENT OR SETTLEMENT
circumstances !NYCHANGEINTHATEFFECTEXCLUDINGAMOUNTSINCLUDED
Capitals
INTHENETINTERESTISRECOGNISEDINOTHERCOMPREHENSIVE
!N ENTITY HAS TO DETERMINE WHETHER TO CONSIDER EACH INCOME4HESEAMENDMENTSWILLAPPLYONLYTOANYFUTURE
UNCERTAINTAXTREATMENTSEPARATELYORTOGETHERWITHONE PLAN AMENDMENTS CURTAILMENTS OR SETTLEMENTS OF THE
Board of
CHANGEFROMITSEFFECTIVEDATE"ASEDONTHEASSESSMENT
DONEBYTHECOMPANYIMPACTOFTHISAPPENDIXISLIKELYTO 4HE AMENDMENTS CLARIFY THAT AN ENTITY TREATS AS PART
BEINSIGNIlCANTONTHElNANCIALSTATEMENTS OF GENERAL BORROWINGS ANY BORROWING ORIGINALLY MADE TO
Other Amendments DEVELOPAQUALIFYINGASSETWHENSUBSTANTIALLYALLOFTHE
ACTIVITIESNECESSARYTOPREPARETHATASSETFORITSINTENDED
4HISAMENDMENTCLARIlESTHATANENTITYSHALLRECOGNIZE USEORSALEARECOMPLETE4HISAMENDMENTWILLNOTHAVE
Directors’
THE INCOME TAX CONSEQUENCES OF DIVIDENDS IN PROlT OR ANYMATERIALEFFECTONTHElNANCIALSTATEMENTS
Report
LOSS OTHER COMPREHENSIVE INCOME OR EQUITY ACCORDING
TO WHERE THE ENTITY ORIGINALLY RECOGNIZED THOSE PAST
Management’s
!MENDMENTTO)ND!3n%MPLOYEE"ENElTSRELATINGTO
Plan amendment, curtailment or settlement
4HE AMENDMENTS ADDRESS THE ACCOUNTING WHEN A PLAN
AMENDMENT CURTAILMENT OR SETTLEMENT OCCURS DURING
Responsibility Report
AREPORTINGPERIOD4HEAMENDMENTSSPECIFYTHATWHEN
A PLAN AMENDMENT CURTAILMENT OR SETTLEMENT OCCURS
DURINGTHEANNUALREPORTINGPERIODANENTITYISREQUIRED
Business
TO
• $ETERMINECURRENTSERVICECOSTFORTHEREMAINDEROF
THE PERIOD AFTER THE PLAN AMENDMENT CURTAILMENT Report on Corporate
ORSETTLEMENTUSINGTHEACTUARIALASSUMPTIONSUSED
TOREMEASURETHENETDElNEDBENElTLIABILITYASSET
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1B : SIGNIFICANT ACCOUNTING ESTIMATES
Chairman’s Desk
& JUDGEMENTS
MORTALITYRATES$UETOTHECOMPLEXITIESINVOLVEDINTHEVALUATION
From the
AND ITS LONG
TERM NATURE A DElNED BENElT OBLIGATION IS HIGHLY
SENSITIVE TO CHANGES IN THESE ASSUMPTIONS !LL ASSUMPTIONS ARE
REVIEWEDATEACHREPORTINGDATE
4HEPARAMETERMOSTSUBJECTTOCHANGEISTHEDISCOUNTRATE4HE
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MANAGEMENTCONSIDERSTHEINTERESTRATESOFGOVERNMENTSECURTITIES
BASEDONEXPECTEDSETTLEMENTPERIODOFVARIOUSPLANS
Further DETAILS
&URTHER details ABOUT
about VARIOUS
various EMPLOYEE
employee BENElT
benefit OBLIGATIONS
obligations ARE
are
given in Note 35.
GIVENIN.OTE
&AIRVALUEMEASUREMENTOFlNANCIALINSTRUMENTS
Description of
7HEN THE FAIR VALUES OF lNANCIAL ASSETS AND lNANCIAL LIABILITIES
recorded in the Balance Sheet cannot be measured based on
Capitals
QUOTEDPRICESINACTIVEMARKETSTHEIRFAIRVALUEISMEASUREDUSING
VALUATION TECHNIQUES INCLUDING THE$ISCOUNTED#ASH &LOW$#&
MODEL BASED ON LEVEL
AND LEVEL
INPUTS 4HE INPUTS TO THESE
Board of
INPUTSSUCHASPRICEESTIMATESVOLUMEESTIMATESRATEESTIMATES
ETC#HANGESINASSUMPTIONSABOUTTHESEFACTORSCOULDAFFECTTHE
REPORTEDFAIRVALUEOFlNANCIALINSTRUMENTS!LSOREFERNOTEFOR
reported fair value of financial instruments. Also refer Note 39 for
FURTHERDISCLOSURESOFESTIMATESANDASSUMPTIONS
further disclosures of estimates and assumptions.
Impairment of Financial Assets
Directors’
Report
4HE IMPAIRMENT PROVISIONS FOR TRADE RECEIVABLES ARE BASED ON
ASSUMPTIONS ABOUT RISK OF DEFAULT AND EXPECTED LOSS RATES 4HE
#OMPANY USES JUDGEMENT IN MAKING THESE ASSUMPTIONS AND
Management’s
reporting period. Also refer Note-40 for impairment analsysis and
REPORTINGPERIOD!LSOREFER.OTE
FORIMPAIRMENTANALSYSISAND
PROVISION
provision.
Responsibility Report
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
200 Indian Oil Corporation Limited 2nd Integrated Annual Report
4RANSFERSFROMCONSTRUCTION
WORK
IN
PROGRESS
$ISPOSALS$EDUCTIONS
4RANSFERS2ECLASSIlCATIONS
Gross Block as at 2,962.33 410.57 13,355.12 1,21,787.62 1,434.71 63.21 616.99 164.17 1,232.02 195.91 1,42,222.65
March 31, 2019
Depreciation & Amortisation - 17.69 1,703.20 14,988.59 526.91 20.12 179.94 27.43 110.33 2.28 17,576.49
as at April 1, 2018
DEPRECIATION &
$EPRECIATION!MORTISATION
AMORTISATION
DURINGTHEYEAR2EFER$
$ISPOSALS$EDUCTIONS
4RANSFERS2ECLASSIlCATIONS
$EPRECIATION!MORTISATION
ASAT-ARCH
Net Block as at 2,962.33 396.68 11,037.10 1,00,435.58 709.56 38.30 367.60 128.74 1,075.00 180.33 1,17,331.22
March 31, 2019
Previous Year
`IN#RORE
Land - Land - Buildings, Plant and /FlCE Transport Furniture Railway Drainage, Producing Total
Freehold Leasehold Roads etc. Equipment Equipments Equipment & Fixtures Sidings Sewage And Properties
Water Supply
System
(Refer A&F) (Refer A&F) (Refer B&F)
Gross Block as at 1,940.58 211.36 10,361.87 1,02,767.14 775.31 49.51 434.55 104.77 974.53 - 1,17,619.62
April 1, 2017
Additions during the year
Gross Block
4RANSFERSFROM
CONSTRUCTIONWORK
IN
progress
$ISPOSALS$EDUCTIONS
4RANSFERS2ECLASSIlCATIONS
Gross Block as at 2,846.26 287.34 11,553.44 1,12,687.61 1,063.08 57.00 529.87 142.36 1,118.95 178.23 1,30,464.14
March 31, 2018
Depreciation & - 3.48 1,185.46 9,022.85 324.60 10.68 89.22 13.10 69.50 - 10,718.89
DEPRECIATION & AMORTISATION
Amortisation as at
April 1, 2017
$EPRECIATION
Amortisation during the
YEAR2EFER$
$ISPOSALS$EDUCTIONS
4RANSFERS2ECLASSIlCATIONS
$EPRECIATION
!MORTISATIONASAT-ARCH
Net Block as at 2,846.26 269.65 9,850.24 97,699.02 536.17 36.88 349.93 114.93 1,008.62 175.95 1,12,887.65
March 31, 2018
60th Annual Report 2018-19 201
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 2 : PROPERTY, PLANT AND EQUIPMENT (Contd...)
Chairman’s Desk
A. I &REEHOLD,ANDINCLUDES`22.13 crore`CRORE LYINGVACANTDUETOTITLEDISPUTESLITIGATION
From the
II /UTOFTHE&REEHOLDLANDMEASURINGACRESAT-ATHURAAND!GRAREGIONSLANDMEASURINGACRESAPPROX HASBEEN
ACQUIRED BY .(!) AS A PART OF THE .( WIDENING PROJECT FOR WHICH THE DETERMINATION OF VALUE OF COMPENSATION IS PENDING
!CCORDINGLYTHEVALUEOFLANDAMOUNTINGTO`CROREISCONTINUEDTOBEINCLUDEDIN&REEHOLDLAND
B. I "UILDINGSINCLUDE`0.01 crore`CRORE TOWARDSVALUEOF1605 3HARESIN#O
OPERATIVE(OUSING3OCIETIES
TOWARDSMEMBERSHIPOFSUCHSOCIETIESFORPURCHASEOFmATS
About IndianOil
II )NCLUDES2OADS"RIDGESETCIE!SSETSOTHERTHAN"UILDING OF'ROSSBLOCKAMOUNTINGTO`2,945.52 crore `
CRORE ANDNETBLOCKAMOUNTINGTO`1,809.3 crore`CRORE
C. $URINGTHEYEAR`1,758.66 crore`CRORE HASBEENAVAILEDAS6!4#2%$)4#%.6!4'34)4#OUTOFCAPITALEXPENDITURE
ON#7)0ASSETS4HECOSTOFASSETSARENETOF6!4#2%$)4#%.6!4'34)4#WHEREVERAPPLICABLE
D. $EPRECIATIONANDAMORTISATIONFORTHEYEARINCLUDES`8.22 crore`CRORE RELATINGTOCONSTRUCTIONPERIODEXPENSESSHOWN
Description of
IN.OTE
Capitals
E 2AILWAYSHAVECLAIMEDTRANSFEROFOWNERSHIPINRESPECTOFCERTAINASSETSPROVIDEDBYTHE#OMPANYATRAILWAYPREMISESWHICHHASNOT
BEENACCEPTEDBYTHE#OMPANYANDCONTINUETOBEPARTOFlXEDASSETSOFTHE#OMPANY7$6OFSUCHASSETSIS`70.1 crores
`CRORES 4HISINCLUDES7$6OFASSETSWORTH`7.09 crore `CRORE WHICHARENOTINOPERATIONATPRESENT(OWEVER
Board of
ORRENEWAL
G. &ORDETAILSREGARDINGHYPOTHECATIONPLEDGEOFASSETSREFER.OTE
Details of assets under lease included in the above (other than leasehold land):
`IN#RORE
Asset Particulars Gross Accumulated Depreciation & Accumulated W.D.V. as at W.D.V. as at
Directors’
Block Amortisation Impairment Loss March 31, 2019 March 31, 2018
Report
Taken on Finance Lease
Buildings
8.96
Management’s
4RANSPORT%QUIPMENT
2.15
Given on Operating Lease
Buildings
0.89
0LANTAND%QUIPMENT
2.06
Responsibility Report
Details of Company’s share of Jointly Owned Assets included in the above:
`IN#RORE
Business
Asset Particulars Name of Joint Owner Gross Accumulated Accumulated W.D.V. as at W.D.V. as at
Block Depreciation & Impairment March 31, March 31,
Amortisation Loss 2019 2018
,AND
&REEHOLD (0#"0#
3.27 Report on Corporate
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 2.2 : CONSTRUCTION PERIOD EXPENSES (NET) DURING THE YEAR
`IN#RORE
Chairman’s Desk
Particulars 2018-19 2017-18
From the
%MPLOYEE"ENElT%XPENSES 341.34
Repairs and Maintenance 5.28
#ONSUMPTIONOF3TORESAND3PARES -
0OWER&UEL 33.09
About IndianOil
Rent 3.26
Insurance 7.44
2ATESAND4AXES 3.86
4RAVELLING%XPENSES 39.31
Description of
#OMMUNICATION%XPENSES 1.22
Capitals
0RINTINGAND3TATIONERY 0.65
Electricity and Water Charges 8.53
"ANK#HARGES 0.01
Board of
&INANCE#OSTS 3.16
$EPRECIATIONAND!MORTIZATIONON
4ANGIBLE!SSETS 8.22
Intangible Assets 0.01
Directors’
Others 47.09
Report
Total Expenses 504.96 457.06
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
204 Indian Oil Corporation Limited 2nd Integrated Annual Report
Previous Year
`IN#RORE
Right of Way Licenses Computer Software Total
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 3 : INTANGIBLE ASSETS (Contd...)
Chairman’s Desk
A. !MORTISATIONFORTHEYEARINCLUDES`0.01 crore`.), RELATINGTOCONSTRUCTIONPERIODEXPENSESSHOWNIN.OTE
" .ET"LOCKOF)NTANGIBLE!SSETSWITHINDElNITEUSEFULLIFE
From the
`IN#RORE
March 31, 2019 March 31, 2018
2IGHTOF7AY 586.64
About IndianOil
2IGHTOFWAYFORLAYINGPIPELINESAREACQUIREDONAPERPETUALBASIS
C. Details of Company’s share of Jointly Owned Assets included in the above:
`IN#RORE
Assets Name of Joint Gross Block Accumulated Depreciation W.D.V. As at W.D.V. As at
Particulars Owner & Amortisation March 31, 2019 March 31, 2018
#OMPUTER3OFTWARE (0#"0# 0.47
Description of
TOTAL 0.93 0.46 0.47 0.38
Capitals
NOTE - 3.1 : INTANGIBLE ASSETS UNDER DEVELOPMENT
Board of
7ORKIN0ROGRESS
)NTANGIBLE!SSETS
)NCLUDING5NALLOCATED#APITAL%XPENDITURE
"ALANCEASATBEGINNINGOFTHEYEAR 928.01
!DD.ETEXPENDITUREDURINGTHEYEAR 853.87
1,781.88 1,031.97
Directors’
Report
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 103.63
1,678.25 928.01
Management’s
TOTAL 1,438.44 688.20
!)NCLUDES#APITAL%XPENDITURE.ET RELATINGTOONGOING/IL'AS%XPLORATION 239.27
0RODUCTIONACTIVITIES
Responsibility Report
")NTANGIBLEASSETSUNDERDEVELOPMENTAREMAINLYINTHENATUREOF%XPLORATION
0RODUCTION"LOCKSAND,ICENCES#OMPUTER3OFTWARES
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
206 Indian Oil Corporation Limited 2nd Integrated Annual Report
NON-CURRENT
INVESTMENTS:
I In Equity Shares
A In Subsidiaries
(At Cost):
QUOTED:
UNQUOTED:
Indian Oil Mauritian 4882043 100 75.67 - 75.67
Mauritius Rupees
Limited
IOC Middle East Arab 2 1000000 2.30 - 2.30 2
&:% Emirates
$IRHAM
)/#3WEDEN!" 3WEDISH 4204835 100 296.18 - 296.18
Krona
)/#,53! )NC 53$ 5763538921 0.01 336.32 - 336.32
Indian Catalyst Indian 15932700 10 11.18 (4.72) 6.46
0RIVATE,IMITED Rupees
FORMELYKNOWN
as Indo Cat
0RIVATE,IMITED
)ND/IL'LOBAL Canadian 1 1131302435 1 7,840.35 (564.27) 7,276.08 1
"6 $OLLARS
B In Associates
(At Cost):
QUOTED:
UNQUOTED:
0ETRONET)NDIA Indian 18000000 0.10 0.18 - 0.18
,IMITEDUNDER Rupees
LIQUIDATION
0ETRONET6+ Indian 50000000 10 26.02 (26.00) 0.02
Limited Rupees
C In Joint Ventures
(At Cost):
UNQUOTED:
60th Annual Report 2018-19 207
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 4 : INVESTMENTS (Contd...) `IN#RORE
Chairman’s Desk
Particulars Investment Face March 31, 2019 March 31, 2018
Currency Value/Paid
up Value Number Paid Up Investment Impairment Carrying Number Paid Up Investment Impairment Carrying
From the
Value Value Loss/ Value Value Value Loss/ Value
Fair Value Fair Value
Adjustment Adjustment
About IndianOil
)NDIAN/ILTANKING Indian 494828289 10 723.98 (316.66) 407.32
,IMITEDFORMERLY Rupees
KNOWNAS)/4
)NFRASTRUCTURE
Energy Services
,IMITED
Description of
,UBRIZOL)NDIA Indian 499200 100 61.71 - 61.71
0RIVATE,IMITED Rupees
Capitals
Indian Oil Indian 134000000 10 134.00 - 134.00
0ETRONAS0RIVATE Rupees
Limited
Board of
IndianOil Indian 25950000 10 73.28 - 73.28
3KY4ANKING Rupees
0RIVATE,IMITED
Directors’
Report
Indian Synthetic Indian 222861375 10 222.86 - 222.86
2UBBERS0RIVATE Rupees
Limited
Management’s
'30,)NDIA Indian 120125030 10 120.13 - 120.13
'ASNET,IMITED Rupees
Indian Oil Adani Indian 185500000 10 185.50 - 185.50
Responsibility Report
'AS0RIVATE Rupees
Limited
Business
Limited
NO#OF.OTE
2ElNERIES Rupees
0ETROCHEMICALS
Limited
Statements
Standalone
statements
208 Indian Oil Corporation Limited 2nd Integrated Annual Report
D In Others
Investments
designated
at fair value
through OCI:
QUOTED:
/ILAND.ATURAL Indian 986885142 5 1,780.12 13,985.37 15,765.49
'AS#ORPORATION Rupees
Limited
'!),)NDIA Indian 54452730 10 122.52 1,770.53 1,893.05
Limited Rupees
Oil India Limited Indian 53501100 10 1,123.52 (131.35) 992.17
Rupees
UNQUOTED:
International 53$ 350 100 0.02 - 0.02
Cooperative
0ETROLEUM
!SSOCIATION.EW
9ORK
Haldia Indian 150000000 10 150.00 501.75 651.75
0ETROCHEMICAL Rupees
Limited
In Consumer
Cooperative
Societies:
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 4 : INVESTMENTS (Contd...) `IN#RORE
Chairman’s Desk
Particulars Investment Face March 31, 2019 March 31, 2018
Currency Value/Paid
up Value Number Paid Up Investment Impairment Carrying Number Paid Up Investment Impairment Carrying
From the
Value Value Loss/ Value Value Value Loss/ Value
Fair Value Fair Value
Adjustment Adjustment
About IndianOil
In Indian Oil Indian 375 10 - - -
Cooperative Rupees
Consumer Stores
,IMITED$ELHIg
II In Preference
Description of
Shares
Capitals
Investments
at fair value
THROUGHPROlT
and loss
A In Subsidiary
UNQUOTED:
Chennai Indian 500000000 10 500.00 58.38 558.38
Board of
0ETROLEUM Rupees
Corporation
Limited
#UM
Redeemable
.ON#ONVERTIBLE
0REFERENCE
Shares
Directors’
B In Others
Report
UNQUOTED:
Management’s
0REFERENCE
Shares
Sub-total: (II)(B) - - - - - -
III In Government
Securities
Responsibility Report
Investments
at fair value
through OCI
Quoted: (Note B
Business
and C)
'OVT Indian 1960000 10000 2,242.91 (101.60) 2,141.31 Report on Corporate
3TOCK Rupees
'OVT Indian 695000 10000 704.04 2.09 706.13
Governance
3TOCK Rupees
IV In Debentures or
Bonds
Investments
Financial financial
at fair value
THROUGHPROlT
and loss
Statements
Standalone
statements
210 Indian Oil Corporation Limited 2nd Integrated Annual Report
Unquoted:
)NDIAN/IL,.' Indian 6530 1000000 653.00 21.67 674.67
0VT,IMITED&ULLY Rupees
and Compulsorily
Convertible
$EBENTURES!LSO
REFERPOINTNO
#OF.OTE
CURRENT
INVESTMENTS:
In Government
Securities (at fair
value through
OCI)
Quoted:
/IL-ARKETING Indian 8366020 10000 8,366.02 49.78 8,415.80
#OMPANIES'/) Rupees
Special Bonds
In Preference
Shares
Investments
at fair value
THROUGHPROlT
and loss
In Subsidiary
Companies:
UNQUOTED:
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 4 : INVESTMENTS (Contd...)
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
From the
!GGREGATECARRYINGVALUEOFQUOTEDINVESTMENTS 30,716.16
!GGREGATEMARKETVALUEOFQUOTEDINVESTMENTS 37,039.33
!GGREGATECARRYINGVALUEOFUNQUOTEDINVESTMENTS 19,039.22
!GGREGATEAMOUNTOFIMPAIRMENTINVALUEOFINVESTMENTS 917.47
About IndianOil
&OLLOWINGSARENOTREmECTEDABOVEDUETOROUNDINGOFF
Amount in `
Particulars March 31, 2019 March 31, 2018
a Investment Amount 10
Description of
b Investment Amount 100
Capitals
c Investment Amount 2,500
d Investment Amount 2,500
Board of
g Investment Amount 3,750
h Investment Amount 100
Note: A
During the year New investments as well as additional investments were made, as per details below :
`IN#RORE
Directors’
Report
Name of the Entity Number Amount
1. Investment in Equity Shares:
Management’s
)/#,3INGAPORE0TE,TD
'30,)NDIA'ASNET,TD
)NDIAN/IL!DANI'AS0VT,TD
Responsibility Report
-UMBAI!VIATION&UEL&ARM&ACILITY0VT,TD
+OCHI3ALEM0IPELINES0RIVATE,IMITED
Business
(INDUSTAN5RVARAKAND2ASAYAN,IMITED
)NDRADHANUSH'AS'RID,IMITED
2. Investment in Compulsorily Convertible Debentures: Report on Corporate
)NDIAN/IL,.'0RIVATE,IMITED
Governance
Financial financial
Statements
Standalone
statements
212 Indian Oil Corporation Limited 2nd Integrated Annual Report
` IN#RORE
Nature of Bonds March 31, 2019 March 31, 2018
Face Value Carrying Value Face Value Carrying Value
/IL-ARKETING#OMPANIES'/)3PECIAL"ONDS
'/6434/#+
'/6434/#+
/UTOF/IL-ARKETING#OMPANIES'/)3PECIAL"ONDSTHEFOLLOWINGHASBEENEARMARKEDINLINEWITHTHEREQUIREMENTOF#OMPANIES
3HARE#APITALAND$EBENTURES 2ULES
` IN#RORE
Nature of Bonds March 31, 2019 March 31, 2018
Face Value Carrying Value Face Value Carrying Value
'/)30%#)!,"/.$3
60th Annual Report 2018-19 213
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 5 : LOANS (Unsecured, Considered Good at amortised cost unless otherwise stated)
` INCRORE
Chairman’s Desk
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
From the
Security Deposits
To Others
3ECURED#ONSIDERED'OOD 0.06 -
5NSECURED#ONSIDERED'OOD 137.13 168.19
About IndianOil
5NSECURED#ONSIDERED 0.20 1.36
$OUBTFUL
137.39 169.55
,ESS0ROVISIONFOR$OUBTFUL 0.20 1.36
$EPOSITS
137.19 123.14 168.19 119.47
Description of
Loans A
To Related Parties
Capitals
3ECURED#ONSIDERED'OOD 0.13 0.04
5NSECURED#ONSIDERED'OOD 236.35 7.08
Board of
236.48 120.79 9.37 91.99
,ESS0ROVISIONFOR$OUBTFUL -
2.25
Loans
236.48 120.79 7.12 89.74
To Others
3ECURED#ONSIDERED'OOD 734.10 113.65
Directors’
5NSECURED#ONSIDERED'OOD 1,173.63 1,089.24
Report
7HICHHAVESIGNIlCANTINCREASE - 1,141.71
IN#REDIT2ISK
Management’s
,ESS0ROVISIONFOR$OUBTFUL - 1,143.09
Loans
1,907.73 1,787.08 1,202.89 221.35
2,144.21 1,907.87 1,210.01 311.09
Responsibility Report
TOTAL 2,281.40 2,031.01 1,378.20 430.56
!)NCLUDES
,OANSVALUEDAT&AIR6ALUE 147.29 -
Business
THROUGH0ROlTOR,OSS
&640,
$UEFROM$IRECTORS 0.14 0.08
Report on Corporate
$UEFROM/THER/FlCERS 3.70 2.05 Governance
Financial financial
Statements
Standalone
statements
214 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 8 : OTHER ASSETS (NON FINANCIAL) (Unsecured, Considered Good unless otherwise stated)
` INCRORE
Chairman’s Desk
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
From the
Advances for Capital Expenditure
To Related Parties
5NSECURED#ONSIDERED'OOD 0.03 -
0.03 8.77 - -
About IndianOil
To Others
3ECURED#ONSIDERED'OOD 3.20
-
5NSECURED#ONSIDERED'OOD 1,347.05 -
5NSECURED#ONSIDERED 0.09 -
$OUBTFUL
1,350.34 757.41 - -
Description of
1,350.37 766.18 - -
,ESS0ROVISIONFOR$OUBTFUL 0.09 -
Capitals
Advances
1,350.28 766.09
-
Advances Recoverable
Board of
From Others
3ECURED#ONSIDERED'OOD -
-
5NSECURED#ONSIDERED'OOD - 2,657.04
5NSECURED#ONSIDERED -
4.96
$OUBTFUL
- 2,662.00
Directors’
,ESS0ROVISIONFOR$OUBTFUL -
4.96
Report
Advances
- 219.51 2,657.04 1,758.26
Management’s
From Related Parties
5NSECURED#ONSIDERED'OOD -
1.99
5NSECURED#ONSIDERED -
2.61
$OUBTFUL
Responsibility Report
- - 4.60 6.04
From Others
5NSECURED#ONSIDERED'OOD -
744.64
Business
5NSECURED#ONSIDERED -
170.06
$OUBTFUL
-
914.70
Report on Corporate
,ESS0ROVISIONFOR$OUBTFUL -
172.67
Claims
Governance
- - 746.63 627.65
Balance/Deposits with Government
Authorities
5NSECURED#ONSIDERED'OOD
475.08
Financial financial
value
- - 47.50 149.66
216 Indian Oil Corporation Limited 2nd Integrated Annual Report
NOTE - 9 : INVENTORIES
`IN#RORE
Particulars March 31, 2019 March 31, 2018
In Hand :
2AW-ATERIALS A 18,278.37
3TOCKIN0ROCESS 5,739.85
&INISHED0RODUCTS B 23,322.17
3TOCKIN4RADE C 7,519.96
3TORES3PARESETC $ 3,658.76
,ESS0ROVISIONFOR,OSSES 170.22
3,488.54 3,068.81
"ARRELSAND4INS E 74.84
58,423.73 55,002.40
In Transit :
2AW-ATERIALS 10,081.13
&INISHED0RODUCTS 938.27
3TOCKIN4RADE 1,793.99
3TORES3PARESETC 233.26
13,046.65 10,310.81
TOTAL 71,470.38 65,313.21
)NCLUDES
!)NCLUDESSTOCKLYINGWITHOTHERS 160.56
")NCLUDESSTOCKLYINGWITHOTHERS 1,402.94
#)NCLUDESSTOCKLYINGWITHOTHERS 1,285.23
$)NCLUDESSTOCKLYINGWITHCONTRACTORS 6.85
%)NCLUDESSTOCKLYINGWITHOTHERS 0.45
&!MOUNT OF WRITE DOWN OF INVENTORIES CARRIED AT .26 AND RECOGNISED AS 427.56
EXPENSE
'!MOUNTOFREVERSALOFWRITEDOWNOFINVENTORIESRECOGNISEDASINCOME -
(6ALUATIONOFINVENTORIESAREDONEASPERPOINTNOOFSIGNIlCANTACCOUNTING
POLICIES.OTE
)&ORHYPOTHECATIONDETAILSREFER.OTE
60th Annual Report 2018-19 217
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 10 : TRADE RECEIVABLES (At amortised cost)
Chairman’s Desk
`IN#RORE
Particulars March 31, 2019 March 31, 2018
From the
From Related Parties
5NSECURED#ONSIDERED'OOD 648.17
5NSECURED#ONSIDERED$OUBTFUL 0.62
648.79 111.09
From Others
About IndianOil
3ECURED#ONSIDERED'OOD 50.00
5NSECURED#ONSIDERED'OOD 14,749.85
5NSECURED#ONSIDERED$OUBTFUL 133.45
14,933.30 10,089.85
TOTAL 15,582.09 10,200.94
,ESS0ROVISIONFOR)MPAIRMENT A 134.07
Description of
15,448.02 10,116.52
TOTAL 15,448.02 10,116.52
Capitals
!)NCLUDESPROVISIONASPER%XPECTED#REDIT,OSSMETHODINLINEWITH 15.46
accounting policy
Board of
`IN#RORE
Particulars March 31, 2019 March 31, 2018
"ANK"ALANCESWITH3CHEDULED"ANKS
In Current Account 20.53
)N&IXED$EPOSIT
-ATURITYWITHINMONTHS 0.21
Directors’
20.74 26.28
Report
"ANK"ALANCESWITH.ON
3CHEDULED"ANKS 0.32
#HEQUES$RAFTSINHAND 15.16
Management’s
NOTE - 12 : BANK BALANCES OTHER THAN ABOVE
`IN#RORE
Responsibility Report
Particulars March 31, 2019 March 31, 2018
&IXED$EPOSITS A 11.52
%ARMARKED"ALANCES B 40.65
Business
"LOCKED!CCOUNT C 0.68
/THER"ANK"ALANCES $ 0.01
TOTAL 52.86 29.91 Report on Corporate
! %ARMARKEDINFAVOUROF3TATUTORY!UTHORITIES
" 0ERTAINSTO
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 14 : EQUITY SHARE CAPITAL
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
From the
Authorized:
%QUITY3HARESOF`EACH 15,000.00
Issued Subscribed and Paid Up:
9,414.16
About IndianOil
%QUITY3HARESOF`EACHFULLYPAIDUP
Less: Equity Shares held under IOC Shares Trust 233.12
%QUITY3HARESOF`EACHFULLYPAIDUP
TOTAL 9,181.04 9,478.69
A. Reconciliation of No. of Equity Shares
Description of
Opening Balance 9711809928
Capitals
3HARES)SSUED"ONUS3HARES -
3HARESBOUGHTBACK 297651006
Board of
4HE#OMPANYHASONLYONECLASSOFEQUITYSHARESHAVINGPARVALUEOF`EACHANDISENTITLEDTOONEVOTEPERSHARE4HEDIVIDEND
PROPOSEDBYTHE"OARDOF$IRECTORSISSUBJECTTOTHEAPPROVALOFTHESHAREHOLDERSINTHEENSUING!NNUAL'ENERAL-EETING)NTHE
EVENTOFLIQUIDATIONOFTHECORPORATIONTHEHOLDERSOFEQUITYSHARESWILLBEENTITLEDTORECEIVETHEREMAININGASSETSOFTHE#OMPANY
INPROPORTIONTOTHENUMBEROFEQUITYSHARESHELD
Directors’
Report
Name of Shareholder March 31, 2019 March 31, 2018
Number of Percentage of Number of Percentage of
Management’s
/),!.$.!452!,'!3#/20/2!4)/.,)-)4%$ 1337215256 14.20
,)&%).352!.#%#/20/2!4)/./&).$)! 612921292 6.51
/),).$)!,)-)4%$ 485590496 5.16
Responsibility Report
$ &ORTHEPERIODOFPRECEEDINGlVEYEARSASONTHE"ALANCE3HEETDATETHE
A !GGREGATENUMBERANDCLASSOFSHARESALLOTTEDASFULLYPAIDUPPURSUANTTOCONTRACTS WITHOUTPAYMENTBEING .),
Business
received in cash
B !GGREGATENUMBEROFSHARESALLOTTEDASFULLYPAIDUPBYWAYOFBONUSSHARES
$URING&9
/CTOBER INRATIOOF
Report on Corporate
$URING&9
-ARCH INRATIOOF
C !GGREGATENUMBERANDCLASSOFSHARESBOUGHTBACK
Governance
4HE "OARD OF $IRECTORS OF THE #OMPANY AT ITS MEETING HELD ON $ECEMBER HAD APPROVED A PROPOSAL TO BUYBACK UPTO
2976510064WENTY.INE#RORES3EVENTY3IX,AKHS&IFTY/NE4HOUSANDAND3IX EQUITYSHARESOFTHE#OMPANYFORANAGGREGATE
AMOUNTNOTEXCEEDING`4,435.00 crores2UPEES&OUR4HOUSAND&OUR(UNDRED4HIRTY&IVE#ROREONLY REPRESENTINGOFTHE
TOTALPAIDUPEQUITYSHARECAPITALOFTHE#OMPANYATAPRICEOF `2UPEES/NE(UNDREDAND&ORTY.INE/NLY PEREQUITYSHARE
Financial financial
4HEPROCESSOFBUYBACKWASDULYCOMPLETEDON&EBRUARY
Statements
Standalone
statements
220 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 15 : OTHER EQUITY (Contd...)
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
From the
Insurance Reserve :
As per last Account 223.48
,ESS2ECOUPMENTOFUNINSUREDlRELOSS 2.39
!DD!PPROPRIATIONFROM3URPLUS 20.00
About IndianOil
241.09 223.48
Description of
As per Last Account -
Capitals
!DD!PPROPRIATIONFROM3URPLUS 490.60
,ESS5TILIZEDDURINGTHEYEAR 490.60
- -
Board of
!DD&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS (138.40)
,ESS!MORTIZEDDURINGTHEYEAR (148.39)
(35.78) (45.77)
Fair Value Through Other Comprehensive Income :
Fair value of Equity Instruments
Directors’
Report
As per Last Account 18,475.86
!DD&AIRVALUEDURINGTHEYEAR (2,403.66)
Management’s
Fair value of Debt Instruments
As per Last Account (149.41)
!DD&AIRVALUEDURINGTHEYEAR 105.46
,ESS4RANSFERREDTO3TATEMENTOF0ROlTAND,OSS -
Responsibility Report
(43.95) (149.41)
Cash Flow Hedge Reserve
Business
As per Last Account -
!DD'AIN,OSS DURINGTHEYEAR 15.68
,ESS4RANSFERREDDURINGTHEYEAR (6.36)
Report on Corporate
22.04
TOTAL 99,476.47 1,00,692.33
Governance
Financial financial
Statements
Standalone
statements
222 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 16 : LONG TERM BORROWINGS (At Amortised Cost)
` INCRORE
Chairman’s Desk
Particulars Non Current Current Maturities*
From the
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
SECURED LOANS
Bonds:
.ON
#ONVERTIBLE2EDEEMABLE !" -
-
"ONDS
3ERIES
6)))"
About IndianOil
Term Loans:
/IL)NDUSTRY$EVELOPMENT C 176.84 282.81
"OARD/)$"
&INANCE,EASE/BLIGATIONS $ 3,309.74 201.06
Total Secured Loans 3,486.58 3,912.27 483.87 1,727.26
Description of
UNSECURED LOANS
Bonds
Capitals
&OREIGN#URRENCY"ONDS E 15,159.33 188.96
3ENIOR.OTES &" -
-
Board of
From Banks/Financial
Institutions
)N&OREIGN#URRENCY,OANS ' 15,313.12 2,425.98
From Government
In Rupees H 707.33 -
Directors’
16,020.45 6,302.40 2,425.98 2.13
Report
Total Unsecured Loans 31,179.78 14,805.33 2,614.94 777.49
TOTAL LONG-TERM 34,666.36 18,717.60 3,098.81 2,504.75
Management’s
Secured Loans (Bonds : A - B)
Particulars Allotment Date Coupon Rate Date of Redemption Security Details
Responsibility Report
A 3EPTEMBER !FTERYEARSFROM 4HESE WERE SECURED BY WAY OF REGISTERED MORTGAGE
"ONDSOFFACE PAPAYABLE THEDATEOFALLOTMENT OVER THE IMMOVABLE PROPERTIES OF THE #OMPANY IE
VALUEOF` annually on 4HESEBONDSWERE &LATNO.ANIK.IWASOF3HYAM#O
OP(OUSING
Business
th September REDEEMEDDURING&9 3OCIETY ,TD SITUATED AT "HULABHAI $ESAI 2OAD AT
each
-UMBAI TOGETHER WITH SHARES OF THE SAID SOCIETY
ANDIMMOVABLEPROPERTIESOFTHE#OMPANYAT0ANIPAT
Report on Corporate
2ElNERYSITUATEDAT0ANIPATINTHESTATEOF(ARYANA
B )NLINEWITHTHEREQUIREMENTOFTHE#OMPANIES3HARE#APITALAND$EBENTURES 2ULESTHE#OMPANYHASEARMARKED
Governance
/IL-ARKETING#OMPANIES'/)3PECIAL"ONDSOFFACEVALUEOFNIL`#RORE FORTOTALBONDSVALUEOFNIL
`CRORE MATURINGINTHENEXTlNANCIALYEAR
Financial financial
Statements
Standalone
statements
224 Indian Oil Corporation Limited 2nd Integrated Annual Report
Unsecured Loans
E. Repayment Schedule of Foreign Currency Bonds
Sl. No. Particulars of Bonds Date of Issue Date of Repayment
1 53$-ILLION2EG3BONDS *ANUARY 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
2 53$MILLION2EG3BONDS !UGUST 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
3 3'$MILLION2EG3BONDS /CTOBER /N THE SAME DAY CROSS CURRENCY SWAP AMOUNTING TO 53$
-ILLION0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
4 53$-ILLION2EG3BONDS !UGUST 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 16 : LONG TERM BORROWINGS (At Amortised Cost) (Contd...)
Chairman’s Desk
H. Repayment Schedule of Unsecured Interest Free Loans from Govt of Odisha
From the
)NTERESTFREELOANGIVENBY/DISHA'OVERNMENTFORYEARSISTOBEDISBURSEDINQUARTERLYINSTALMENTOF`CRORESTARTEDFROM
!PRILREPAYBLEAFTERYEARS4HElRSTINSTALMENTOFLOANFORTHEPERIOD!PRILTO$ECEMBEROF`CROREHAS
BEENRECEIVEDON*ANUARYANDTHEREAFTER`CROREWILLBERECEIVEDEVERYQUARTER4OTALLOANDISBURSEDTILLNOWIS
`CROREWHICHISREPAYABLEAFTERYEARSFROMTHEQUARTERFORWHICHTHESAMEISGIVENIEINQUARTERLYINSTALMENTSSTARTING
FROMLASTWEEKOF*UNEONWARDS4HISLOANBEINGINTERESTFREELOANISACCOUNTEDATFAIRVALUEANDACCORDINGLYACCOUNTING
About IndianOil
FORGOVERNMENTGRANTISDONE
NOTE - 17 : OTHER FINANCIAL LIABILITIES (At Amortised Cost unless otherwise stated)
` INCRORE
Particulars Non Current Current
Description of
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Capitals
#URRENT-ATURITIESOF,ONG
TERM$EBT -
3,098.81
REFER.OTE
,IABILITYFOR#APITAL%XPENDITURE -
4,828.93
Board of
Basis
)NVESTOR%DUCATION0ROTECTION
&UNDTOBECREDITEDONTHEDUE
DATES
5NPAID$IVIDEND -
40.62
Directors’
5NPAID-ATURED$EPOSITS -
0.01
Report
- - 40.63 19.18
$ERIVATIVEINSTRUMENTSATFAIRVALUE -
258.40
Management’s
Others B 0.83 2,517.36
TOTAL 616.03 533.47 43,972.06 40,350.85
! ,0' $EPOSITS RECLASSIlED AS
CURRENT IN LINE WITH INDUSTRY
Responsibility Report
PRACTICEANDINCLUDESTOWARDS
,0'#ONNECTIONISSUEDUNDER - - - -
0RADHAN -ANTRI 5JJAWALA
Business
9OJNA 0-59 AND 2AJIV
'ANDHI 'RAMIN ,0' 6ITRAK
9OJNA 2'',69 AND VARIOUS
Report on Corporate
OTHERSCHEMESOF'OVERNMENT
OF)NDIA
Governance
FOR2ENEWABLE%NERGY#ERTIlCATES
2%#S GENERATED
226 Indian Oil Corporation Limited 2nd Integrated Annual Report
A. In compliance of Ind AS 37 - “Provisions, Contingent Liabilities and Contingent Assets”, the required information are as under :
` INCRORE
Particulars Opening Addition Utilization Reversals Unwinding of Closing
Balance during the during the during the discount and changes Balance
year year year in the discount rate
$ECOMMISSIONING,IABILITY
%0"LOCKS
0REVIOUS9EAR4OTAL
B. In compliance of Ind AS 37 - “Provisions, Contingent Liabilities and Contingent Assets”, the required information is as under :
` INCRORE
Particulars Opening Addition during the Utilization during Reversals during Closing
Balance year the year the year Balance*
%XCISE
3ALES4AX'34
%NTRY4AX
Others
TOTAL 32,320.69 1,479.02 20,838.18 1,509.17 11,452.36
0REVIOUS9EAR4OTAL
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 19 : DEFERRED TAX LIABILITIES (NET)
Chairman’s Desk
(i) In compliance of Ind AS – 12 on “Income Taxes”, the item wise details of Deferred Tax Liabilities (net) are as under:
` INCRORE
From the
Particulars April 1, 2018 Provided during the Provided during Balance as
year in the Statement of the year in OCI on March
0ROlTAND,OSS (net) 31, 2019
Deferred Tax Liability:
About IndianOil
2ELATEDTO&IXED!SSETS
22,100.50
&OREIGN#URRENCYGAINONLONGTERMMONETARYITEM
12.50
Total Deferred Tax Liability (A) 20,191.98 1,921.02 - 22,113.00
Deferred Tax Assets:
0ROVISION ON )NVENTORIES 4RADE 2ECEIVABLE ,OANS AND
993.23
Description of
!DVANCE)NVESTMENTS
Capitals
#OMPENSATIONFOR6OLUNTARY2ETIREMENT3CHEME
9.38
"A IA OTHER$ISALLOWANCESETC
3,692.50
&AIRVALUATIONOF%QUITYINSTRUMENTS
(54.11)
Board of
Others
61.59
Total Deferred Tax Assets (B) 6,975.46 (1,755.43) (523.53) 4,696.50
MAT credit entitlement (C) - Net # 1,196.95 396.48 - 1,593.43
Deferred Tax Liability net of MAT Credit (A-B-C) 12,019.57 3,279.97 523.53 15,823.07
Directors’
Ï)NCLUDESUTILISATIONOF-!4#REDITOF`148.14 croresDURING&9
Report
(ii) Reconciliation between the average effective tax rate and the applicable tax rate is as below :
Management’s
4AXEFFECTOFINCOMETHATARENOTTAXABLEINDETERMININGTAXABLEPROlT (2.38)
4AXEFFECTOFEXPENSESTHATARENOTDEDUCTIBLEINDETERMININGTAXABLEPROlT 0.84
4AXEFFECTONRECOGNITIONOFPREVIOUSLYUNRECOGNISEDALLOWANCEDISALLOWANCES 1.25
Responsibility Report
4AXEFFECTOFEXPENSESONSHAREBUYBACKTHROUGH%QUITY 0.02
4AXEXPENSESINCOMERELATEDTOPRIORYEARS (1.90)
$IFFERENCEINTAXDUETOINCOMECHARGEABLETOTAXATSPECIALRATES (0.01)
Business
$IFFERENCEDUETOCHANGEIN2ATEOF4AX -
Average Effective Tax Rate 32.76 34.45
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
228 Indian Oil Corporation Limited 2nd Integrated Annual Report
! !GAINST HYPOTHECATION BY WAY OF lRST PARI PASSU CHARGE ON 2AW -ATERIALS &INISHED 'OODS 3TOCK
IN 4RADE 4RADE 2ECEIVABLES
/UTSTANDINGMONIES2ECEIVABLES#LAIMS#ONTRACTS%NGAGEMENTSTO3")AND($&#"ANKS
" !GAINSTPLEDGINGOFFOLLOWINGTO##),
'OVERNMENT3ECURITIES 2,655.00
"ANK'UARANTEES 1,650.00
60th Annual Report 2018-19 229
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 22 : TRADE PAYABLES
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
$UESTO-ICROAND3MALL%NTERPRISES 235.24
From the
$UESTO2ELATED0ARTIES 2,609.91
$UESTO/THERS A 35,833.85
TOTAL 38,679.00 32,921.01
!)NCLUDESAMOUNTRELATEDTO-ICROAND3MALLENTERPRISESFORWHICHPAYMENTTOBEMADE 1.21
About IndianOil
TOlNANCIALINSTITUTIONSINPURSUANCEOFBILLSDISCOUNTEDBYTHEM
Description of
3ALEOF0RODUCTSAND#RUDE 6,08,378.66
Capitals
,ESS$ISCOUNTS 12,158.70
3ALES.ETOF$ISCOUNTS 5,96,219.96
3ALEOF3ERVICES 131.39
Board of
.ET#LAIM3URRENDER OF33# 310.66
3UBSIDYFROM#ENTRAL3TATE'OVERNMENTS 150.00
'RANTFROM'OVERNMENTOF)NDIA 4,110.18
TOTAL 6,05,923.77 5,06,427.59
Note - 46
0ARTICULARSRELATINGTO2EVENUE'RANTSAREGIVENIN.OTE
Directors’
Report
NOTE - 23.1 : OTHER OPERATING REVENUES
Management’s
3ALEOF0OWERAND7ATER 429.56
2EVENUEFROM#ONSTRUCTION#ONTRACTS 6.50
5NCLAIMED5NSPENTLIABILITIESWRITTENBACK 312.03
0ROVISIONFOR$OUBTFUL$EBTS!DVANCES#LAIMSAND3TORESWRITTENBACK 58.93
Responsibility Report
0ROVISIONFOR#ONTINGENCIESWRITTENBACK 1,492.97
2ECOVERIESFROM%MPLOYEES 11.98
2ETAIL/UTLET,ICENSE&EES 1,187.82
Business
)NCOMEFROM.ON&UEL"USINESS 244.67
#OMMISSIONAND$ISCOUNT2ECEIVED 5.45
3ALEOF3CRAP 235.06 Report on Corporate
)NCOMEFROM&INANCE,EASES 2.48
!MORTIZATIONOF#APITAL'RANTS 99.99
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 26: CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND STOCK IN PROCESS
Chairman’s Desk
`IN#RORE
Particulars 2018-19 2017-18
From the
Closing Stock
&INISHED0RODUCTS 24,260.44
3TOCKIN0ROCESS 5,739.85
About IndianOil
3TOCK
IN
TRADE 9,313.95
39,314.24 36,303.11
,ESS
Opening Stock
&INISHED0RODUCTS 22,947.90
3TOCKIN0ROCESS 4,960.90
Description of
3TOCK
IN
4RADE 8,394.31
Capitals
36,303.11 38,591.48
NET INCREASE/(DECREASE) 3,011.13 (2,288.37)
Board of
`IN#RORE
Particulars 2018-19 2017-18
3ALARIES7AGES"ONUSETC 7,053.80
#ONTRIBUTIONTO0ROVIDENT/THER&UNDS 2,365.02
6OLUNTARY2ETIREMENT#OMPENSATION 1.49
Directors’
Report
3TAFF7ELFARE%XPENSES 1,681.86
TOTAL 11,102.17 10,079.41
Management’s
ONWHICHTHE#OMPANYHASTAKENUPTHEMATTERWITH-/0.'$0%4HISALLOWANCEHASBEENDISCONTINUEDWEF.OVEMBER
" %XCLUDES`372.88 crore`CRORE INCLUDEDINCAPITALWORKINPROGRESS.OTE
INTANGIBLEASSETSUNDERDEVELOPMENT
.OTE
AND`21.92 crore `CRORE INCLUDEDIN#32EXPENSES.OTE
4HEAMOUNTINCLUDEDINCAPITALWORK
in progress also includes `0.28 crore `CRORE PAIDTOEXECUTIVESAS0ROJECT!LLOWANCEWORKINGINGRASSROOTPROJECTSTILL
COMMERCIALPRODUCTIONWHERETHECOMPANYHASTAKENUPTHEMATTERWITH-/0.'4HE0ROJECTALLOWANCEHASBEENDISCONTINUED
Responsibility Report
WEF-ARCH
# Includes
C. )NCLUDES `1,266.52 CRORE towards
` crore TOWARDS SABF
3!"& defined
DElNED benefit
BENElT contribution
CONTRIBUTION for
FOR the
THE transition
TRANSITION phase
PHASE arising
ARISING as
AS on
ON January
*ANUARY 1,
2007
Business
REFER.OTE
(refer Note - 35).
$ Includes
D. `555.18 crore
)NCLUDES`555.18 crore.), ;)NCLUDINGACTURIALLIABILITYOF`475.90.), =FORFELICITATIONAWARDTORETIREDEMPLOYEES
(2018: NIL) [Including acturial liability of `475.90 (2018: NIL)] for felicitation award to retired employees
REFER.OTE
(refer Note - 35)
Report on Corporate
% Disclosure
E. $ISCLOSUREINCOMPLIANCEWITH)NDIAN!CCOUNTING3TANDARD
ONh%MPLOYEE"ENElTSvISGIVENIN.OTE
in compliance with Indian Accounting Standard-19 on “Employee Benefits” is given in Note - 35. Governance
Financial financial
Statements
Standalone
statements
232 Indian Oil Corporation Limited 2nd Integrated Annual Report
! -AINLYINCLUDES
)NTERESTON%NTRY4AX,IABILITY
)NTERESTEXPENSESUS"AND#
" 4OTALINTERESTEXPENSECALCULATEDUSINGTHEEFFECTIVEINTERESTMETHOD FORlNANCIALLIABILITIESTHAT
ARENOTATFAIRVALUETHROUGHPROlTORLOSS
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 29.1 : OFFICE, ADMINISTRATION,SELLING AND OTHER EXPENSES
`IN#RORE
Chairman’s Desk
Particulars 2018-19 2017-18
From the
Rent 1,115.35
Insurance 151.85
2ATES4AXES 189.54
$ONATION 5.71
About IndianOil
0AYMENTTO!UDITORS
As Auditors 2.06
&OR4AXATION-ATTERS 0.45
/THER3ERVICESFORISSUINGOTHERCERTIlCATESETC 1.51
&ORREIMBURSEMENTOFEXPENSES 0.32
4.34 2.98
Description of
4RAVELLING#ONVEYANCE 716.98
Capitals
#OMMUNICATION%XPENSES 57.18
0RINTING3TATIONERY 41.32
Board of
0ROVISION,OSSON!SSETSSOLDORWRITTENOFF.ET 152.87
4ECHNICAL!SSISTANCE&EES 34.39
%XCHANGE&LUCTUATIONNET 1,503.15
0ROVISIONFOR$OUBTFUL$EBTS!DVANCES#LAIMS#7)03TORESETC 1,084.75
3ECURITY&ORCE%XPENSES 768.75
Directors’
Report
3ALES0ROMOTION%XPENSES)NCLUDING#OMMISSION 469.49
(ANDLING%XPENSES 541.31
Management’s
&AIRVALUE,OSSON&INANCIALINSTRUMENTSCLASSIlEDAS&640, 2.77
!MORTISATIONOF&#-ONETARY)TEM4RANSLATION 148.39
,OSSON3ALEOF)NVESTMENTS.ET 1.60
Responsibility Report
%XPENSESON#ONSTRUCTION#ONTRACTS 6.37
%XPENSESON#32!CTIVITIES 490.60
4RAINING%XPENSES 90.70
Business
,EGAL%XPENSES0AYMENT4O#ONSULTANTS 175.72
.OTICESAND!NNOUNCEMENT 37.51
!DVERTISEMENTAND0UBLICITY 79.70 Report on Corporate
PAYMENTTOOTHERS4HERATIOOFANNUALEXPENDITUREON0UBLIC2ELATIONSAND0UBLICITYTOTHEANNUALTURNOVERINCLUSIVEOFEXCISEDUTY
is 0.00020:1
Statements
Standalone
statements
234 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 31 : DISTRIBUTIONS MADE AND PROPOSED
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
From the
Cash dividends on Equity Shares declared:
Final dividend
4OTAL&INALDIVIDENDDURINGTHECURRENTYEARFOR-ARCH`2.00 per share 1,942.36
-ARCH`PERSHAREAFTERRESTATEMENTFORBONUSSHARES
About IndianOil
,ESS&INAL$IVIDENDPERTAININGTO)/#3HARETRUST2EFER.OTE
46.62
Final dividend net of IOC share trust 1,895.74 473.93
$$4ONlNALDIVIDEND 396.18
Interim dividend
4OTAL)NTERIMDIVIDENDFOR-ARCH`8.25 per share-ARCH`PERSHARE 7,967.60
2EFER.OTE
Description of
(Refer Note-2)
,ESS)NTERIM$IVIDENDPERTAININGTO)/#3HARETRUST2EFER.OTE
192.32
Capitals
Interim dividend net of IOC share trust 7,775.28
$$4ONINTERIMDIVIDEND 1,589.11
TOTAL 11,656.31 11,399.86
Board of
SHARE
(Refer Note-2)
,ESS0ROPOSED$IVIDENDPERTAININGTO)/#3HARETRUST2EFER.OTE
23.31
Final proposed dividend net of IOC share trust 918.11
$$4ONPROPOSEDDIVIDEND 193.51
1,111.62 2,295.00
Directors’
Notes:
Report
0ROPOSEDDIVIDENDONEQUITYSHARESARESUBJECTTOAPPROVALATTHEANNUALGENERALMEETINGANDARENOTRECOGNISEDASALIABILITYINCLUDING$$4
THEREON ASAT-ARCH
Management’s
4HE#OMPANYHASALSOINCURREDEXPENSESONDISTRIBUTIONOFlNALDIVIDENDAMOUNTINGTO`0.14 crore`CRORE ANDONDISTRIBUTION
OFINTERIMDIVIDENDAMOUNTINGTO`0.34 crore`CRORE WHICHHASBEENDEBITEDTOEQUITY
4HE"OARDOF$IRECTORSOFTHE#OMPANYATITSMEETINGHELDON$ECEMBERHADAPPROVEDAPROPOSALTOBUYBACKUPTO
4WENTY.INE#RORES3EVENTY3IX,AKHS&IFTY/NE4HOUSANDAND3IX EQUITYSHARESOFTHE#OMPANY4HE#OMPANYBOUGHTBACK
4WENTY.INE#RORES3EVENTY3IX,AKH&IFTY/NE4HOUSANDAND3IX EQUITYSHARESOUTOFTHESHARESTHATWERETENDEREDBYELIGIBLESHAREHOLDERS
Responsibility Report
ANDTHESHARESBOUGHTBACKWERECANCELLEDANDEXTINGUISHEDON&EBRUARY
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
236 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 33A : INTEREST IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
Chairman’s Desk
4HELISTOF)NVESTMENTSIN3UBSIDIARIES*OINT6ENTURESAND!SSOCIATESAREASUNDER
From the
Name Country of Incorporation/ Equity Interest
Principal place of business March 31, 2019 March 31, 2018
Subsidiaries
#HENNAI0ETROLEUM#ORPORATION,IMITED India 51.89%
About IndianOil
)NDIAN#ATALYST0RIVATE,IMITEDÏ India 100.00%
)NDIAN/IL-AURITIUS ,TD Mauritius 100.00%
,ANKA)/#0,# 3RI,ANKA 75.12%
)/#-IDDLE%AST&:% 5!% 100.00%
)/#3WEDEN!" 3WEDEN 100.00%
)/#,53! )NC 53! 100.00%
Description of
)ND/IL'LOBAL"6 .ETHERLANDS 100.00%
Capitals
)/#,3INGAPORE0TE,TD Singapore 100.00%
Associates
0ETRONET,.',IMITED India 12.50%
Board of
Joint Ventures
)NDIAN/ILTANKING,IMITED&ORMERLY)/4)NFRASTRUCTURE India 49.38%
%NERGY3ERVICES,TD
,UBRIZOL)NDIA0RIVATE,IMITED India 26.00%
)NDIAN/IL0ETRONAS0RIVATE,IMITED India 50.00%
Directors’
Report
'REEN'AS,IMITED India 49.97%
)NDIAN/IL3KYTANKING0RIVATE,IMITED India 50.00%
Management’s
)NDIAN3YNTHETIC2UBBER0RIVATE,IMITED India 50.00%
.0#),)NDIAN/IL.UCLEAR%NERGY#ORPORATION,IMITED India 26.00%
'30,)NDIA4RANSCO,IMITED India 26.00%
'30,)NDIA'ASNET,IMITED India 26.00%
Responsibility Report
)NDIAN/IL!DANI'AS0RIVATE,IMITED India 50.00%
-UMBAI!VIATION&UEL&ARM&ACILITY0RIVATE,IMITED India 25.00%
+OCHI3ALEM0IPELINES0RIVATE,IMITED India 50.00%
Business
)NDIAN/IL,.'0RIVATE,IMITED India 50.00%
)NDIAN/IL0ANIPAT0OWER#ONSORTIUM,TD India 50.00%
0ETRONET#),4$5NDER,IQUIDATION India 26.00% Report on Corporate
)NDIAN/IL2UCHI"IO&UELS,,0ÏÏ India 50.00%
(INDUSTAN5RVARAKAND2ASAYAN,TD India 29.67%
Governance
ÏÏ)NDIAN/ILHASDECIDEDTOEXITTHE*OINT6ENTUREANDHASGIVENNOTICEOFITSEXITFROMTHE,,0TOTHEOTHER*6PARTNERVIZ2UCHI3OYA
)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBERSTATINGTHATITWILLEXITTHE,,0WEF*ANUARY
Statements
Standalone
statements
238 Indian Oil Corporation Limited 2nd Integrated Annual Report
)/#,SHAREOF&INANCIALPOSITIONOFABOVE*OINT/PERATIONSISASUNDER
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Assets 547.31 451.25
00%INCLUDING0RODUCING0ROPERTIES
#APITAL7ORKIN0ROGRESS
)NTANGIBLE!SSETUNDER$EVELOPMENT.ETOF0ROVISIONS
/THER!SSETS.ETOF0ROVISIONS
Liabilities & Provisions 140.37 115.50
Liabilities
0ROVISIONS
Incomes 152.65 19.00
3ALEOF0RODUCTS.ETOF/WN#ONSUMPTION
Other Income
Expenditure 85.06 41.14
%XPENDITUREWRITTENOFFINCLEXPLORATIONRELATED
/THER#OSTSINCLEXPLORATIONRELATED
Commitments 797.28 782.45
Contingent Liabilities - -
60th Annual Report 2018-19 239
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 34 : DISCLOSURE RELATING EXPLORATION AND PRODUCTION ACTIVITIES
Chairman’s Desk
!)NCOMPLIANCEOF)ND!3
ONh%XPLORATIONAND%VALUATIONOF-INERAL2ESOURCESvTHEDISCLOSUREOFlNANCIALINFORMATIONRELATINGTO
ACTIVITYASSOCIATEDWITHTHEEXPLORATIONFORANDEVALUATIONOFMINERALRESOURCESCRUDEOILNATURALGASETC ISASUNDER
From the
`IN#RORE
Name March 31, 2019 March 31, 2018
(i) Assets 242.73 204.92
)NTANGIBLE!SSETSUNDER$EVELOPMENT
About IndianOil
#APITAL7ORKIN0ROGRESS
/THER!SSETS
(ii) Liabilities 115.70 98.58
4RADE0AYABLES
0ROVISIONS
Description of
/THER,IABILITIES
Capitals
(iii) Income - 0.39
/THER)NCOME
(iv) Expenses 71.56 39.74
Board of
(v) Cash Flow
- Net Cash from/(used) in operating activities (49.51) (24.52)
- Net Cash from/(used) in investing activities (42.73) 82.63
Directors’
Report
Discussion & Analysis
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
240 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 35 : EMPLOYEE BENEFITS
Chairman’s Desk
$ISCLOSURESINCOMPLIANCEWITH)ND!3ONh%MPLOYEE"ENElTSvISASUNDER
From the
! $ElNED#ONTRIBUTION0LANS
'ENERAL$ESCRIPTION
Provident Fund (EPS-95)
$URINGTHEYEARTHECOMPANYHASRECOGNISED `37.32 crore `CRORE ASCONTRIBUTIONTO%03
INTHE3TATMENTOF0ROlT
AND,OSS#7)0INCLUDEDIN#ONTRIBUTIONTO0ROVIDENTAND/THER&UNDSIN.OTE
#ONSTRUCTIONPERIODEXPENSESIN.OTE
About IndianOil
Pension Scheme
$URING THE YEAR THE COMPANY HAS RECOGNISED `474.20 crore ` CRORE TOWARDS $ElNED #ONTRIBUTORY %MPLOYEES
0ENSION3CHEMEINTHE3TATMENTOF0ROlTAND,OSS#7)0INCLUDEDIN#ONTRIBUTIONTO0ROVIDENTAND/THER&UNDSIN.OTE
#ONSTRUCTIONPERIODEXPENSESIN.OTE
&URTHERDURINGTHEYEARANAMOUNTOF`1,266.52 croreHASBEENCONTRIBUTEDONONETIMEBASISTOWARDS$ElNED"ENElTCONTRIBUTION
Description of
FORTHETRANSITIONPHASEARISINGASON*ANUARYIEATTHETIMEOFCOMMENCEMENTOF$ElNED#ONTRIBUTIONPENSIONSCHEME
" $ElNED"ENElT0LANS
'ENERAL$ESCRIPTION
Capitals
Provident Fund:
4HE#OMPANYSCONTRIBUTIONTOTHE0ROVIDENT&UNDISREMITTEDTOSEPARATEPROVIDENTFUNDTRUSTSESTABLISHEDFORTHISPURPOSEBASEDON
Board of
DElCITASON-ARCH
Gratuity:
%ACHEMPLOYEERENDERINGCONTINUOUSSERVICEOFYEARSORMOREISENTITLEDTORECEIVEGRATUITYAMOUNTEQUALTOOFTHEEILIGIBLE
SALARYFOREVERYCOMPLETEDYEAROFSERVICESUBJECTTOMAXIMUMOF`CROREATTHETIMEOFSEPARATIONFROMTHECOMPANY"ESIDES
THECEILINGOFGRATUITYINCREASESBYWHENEVER)$!RISESBY
Directors’
Report
Post Retirement Medical Scheme (PRMS):
02-3PROVIDESMEDICALBENElTTORETIREDEMPLOYEESANDELIGIBLEDEPENDANTFAMILYMEMBERS
Management’s
2ESETTLEMENTALLOWANCEISPAIDTOEMPLOYEESTOPERMANENTLYSETTLEDOWNATAPLACEOTHERTHANTHELOCATIONOFLASTPOSTINGATTHETIME
OFRETIREMENT
Ex gratia:
%X
GRATIAISPAYABLETOTHOSEEMPLOYEESWHOHAVERETIREDBEFORE.OVEMBERANDNOTCOVEREDUNDERTHEPENSIONSCHEME
Responsibility Report
&URTHERFOREMPLOYEESWHOHAVERETIREDONORAFTER.OVEMBERANDTHEIRENTITLEMENTUNDERTHEPENSIONSCHEMEISLESSTHAN
APPLICABLEAMOUNTUNDER%X
'RATIA3CHEMESUCHEMPLOYEESAREALSOELIGIBLETOTHEEXTENTOFSHORTFALLORDIFFERENCEUNDER%X
GRATIA
SCHEME4HESCHEMEOFEX
GRATIAHASBEENRESTRICTEDTOCOVERONLYTHOSEELIGIBLEEMPLOYEESWHOHAVERETIREDUPTO$ECEMBER
Business
ANDNOTTHEREAFTER
Staff Pension fund at AOD:
Report on Corporate
4HE&UNDISMAINTAINEDFORDISBURSEMENTOFPENSIONTO/FlCERSWHOHAVEJOINEDERSTWHILE!SSAM/IL#OMPANYBEFORE/CTOBER
ANDOPTEDTOCONTINUETHEBENElTOFPENSIONASEXISTINGPRIORTOTAKEOVER4HECOMPANYISMANAGINGTHEFUNDAFTERTAKEOVEROF
Governance
THEERSTWHILE!SSAM/IL#OMPANYINTHENAMEOF)/#,!/$ 3TAFF0ENSION&UND
Workmen Compensation:
4HE#OMPANYPAYSANEQUIVALENTAMOUNTOFMONTHSSALARYTOTHEFAMILYMEMBEROFTHEEMPLOYEEIFEMPLOYEEDIESWHILEHEIS
ONDUTY4HISSCHEMEISNOTFUNDEDBYTHECOMPANY4HELIABILITYORIGINATESOUTOFTHE7ORKMENCOMPENSATION!CTAND&ACTORY!CT
Financial financial
4HE#OMPANYHASINTRODUCEDASCHEMETOPAYSPECIlEDAMOUNTASFELICITATIONAWARDTORETIREDEMPLOYEESONACHIEVINGSPECIlCAGE
MILESTONES`555.18 crore HASBEENREGOGNISEDASEXPENSESINCLUDINGACTURIALLIABILITYOF`CRORE DURINGTHEYEARONTHIS
ACCOUNT
242 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 35 : EMPLOYEE BENEFITS (Contd...)
Chairman’s Desk
(ii) Reconciliation of balance of Fair Value of Plan Assets
`IN#RORE
From the
Provident Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded
&AIR6ALUEOF0LAN!SSETSATTHE 13,102.84 1,837.53 4,642.23 1.24 - -
About IndianOil
BEGINNINGOFTHEYEAR 11,694.45 1,842.85 3,702.41 2.87 - -
Interest Income 1,119.63 142.96 360.24 - - -
1,122.62 134.34 275.83 0.12 - -
Contribution by employer 418.12 909.31 160.94 - - -
401.03 - 772.23 - - -
Description of
Contribution by employees 1,154.88 - 1.27 - - -
Capitals
983.70 - 1.18 - - -
.ET,IABILITYTRANSFERRED)N/UT 83.62 - - - - -
67.52 - - - - -
Board of
2E
MEASUREMENT2ETURNONPLANASSETS 53.46 29.11 31.95 -
EXCLUDING)NTEREST)NCOME (99.77) 10.31 70.74 0.07
&AIRVALUEOFPLANASSETSATTHEENDOF 14,635.72 2,549.13 4,993.59 - - -
the year 13,102.84 1,837.53 4,642.23 1.24 - -
III 2ECONCILIATIONOF&AIR6ALUEOF0LAN!SSETSAND$ElNED"ENElT/BLIGATION
Directors’
Report
`IN#RORE
Provident Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Management’s
&AIR6ALUEOF0LAN!SSETSATTHEENDOF 14,635.72 2,549.13 4,993.59 - - -
the year 13,102.84 1,837.53 4,642.23 1.24 - -
$ElNED"ENElT/BLIGATIONATTHEENDOF 14,325.99 2,662.76 4,908.94 - 120.83 208.92
Responsibility Report
the year 12,846.57 2,657.59 4,561.94 1.23 122.34 190.55
Amount not recognised in the Balance (309.73) - - - - -
3HEETASPERPARAOF)ND!3
Business
(256.27) - - - - -
Amount recognised in the Balance Sheet - 113.63 (84.65) - 120.83 208.92
- 820.06 (80.29) (0.01) 122.34 190.55 Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
244 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 35 : EMPLOYEE BENEFITS (Contd...)
Chairman’s Desk
(vii) Sensitivity on Actuarial Assumptions:
`IN#RORE
From the
Loss/(Gain) for: Provident Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded
Change in Discounting Rate
)NCREASEBY - (150.14) (652.78) - (13.68) (7.96)
About IndianOil
- (149.02) (607.15) (0.01) (13.34) (7.34)
$ECREASEBY - 174.01 851.89 - 17.14 8.71
- 171.68 790.46 0.01 16.66 8.04
Change in Salary Escalation
)NCREASEBY - 36.29 - - - -
- 38.95 - 0.01 - -
Description of
$ECREASEBY - (39.79) - - - -
- (43.60) - (0.01) - -
Capitals
#HANGEIN)NmATION2ATE
)NCREASEBY - - 505.49 - -
- - 467.36 - -
Board of
(viii) Investment details:
Provident Gratuity PRMS Staff Pension
Fund Fund at AOD
Funded Funded Funded Funded
)NVESTMENTWITH)NSURER - 99.65% 94.29% -
- 98.47% 93.95% 97.27%
Directors’
3ELFMANAGEDINVESTMENTS 100.00% 0.35% 5.71% -
Report
100.00% 1.53% 6.05% 2.73%
Management’s
Fund Fund at AOD
Funded Funded Funded Funded
'OVERNMENT3ECURITIES#ENTRAL3TATE 49.99% 69.21% 69.68% -
44.12% 69.33% 65.19% 2.73%
)NVESTMENTIN%QUITY-UTUAL&UNDS 6.83% 5.06% 5.20% -
Responsibility Report
4.66% 5.43% 5.18% -
)NVESTMENTIN$EBENTURES3ECURITIES 39.07% 16.03% 22.67% -
41.13% 21.60% 25.57% -
Business
/THERAPPROVEDINVESTMENTSINCL#ASH 4.11% 9.70% 2.45% -
10.09% 3.64% 4.06% 97.27%
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 36 : COMMITMENTS AND CONTINGENCIES (Contd...)
Chairman’s Desk
$ETAILSOFEXPENSESBOOKEDUNDERVARIOUSARRANGEMENTSAREASUNDER
`IN#RORE
From the
2018-19 2017-18
Operating Lease cases under Appendix C of Ind AS-17
(ANDLINGEXPENSEUNDERTHEHEADh/THEREXPENSESvINRELATIONTO#&!ARRANGEMENT 28.20
0ROCESSING &EE AND OTHER CHARGES UNDER THE HEAD h/THER EXPENSESv IN RELATION TO BOTTLING -
About IndianOil
ARRANGEMENTWITH#0#,
0ROCESSING&EEANDOTHERCHARGESUNDERTHEHEADh/THEREXPENSESvINRELATIONTOTERMINALLING 21.13
ARRANGEMENTWITH'#04#,
0ROCESSING&EEUNDERTHEHEADh/THEREXPENSESvINRELATIONTOLUBRICANTSlLLINGARRANGEMENT -
4RANSPORTATIONCHARGESUNDERTHEHEADh/THEREXPENSESvINRELATIONTO0RIME-OVER!GREEMENT 7.65
Description of
0URCHASE OF NITROGEN OXYGEN FOR SUPPLY OF OXYGEN AND NITROGEN AT 0ANIPAT 2ElNERY UNDER 122.25
Capitals
h#OSTOFMATERIALSCONSUMEDv
&REIGHTCHARGESUNDERTHEHEADh#OSTOF-ATERIALS#ONSUMEDvh/THEREXPENSESvINRELATIONTO 796.55
4IME#HARTER!RRANGEMENT
Board of
4HELEASERENTALSRECOGNIZEDASINCOMEINTHESESTATEMENTSASPERTHERENTALSSTATEDINTHERESPECTIVEAGREEMENTS
`IN#RORE
2018-19 2017-18
!,EASERENTALSRECOGNIZEDASINCOMEDURINGTHEYEAR 4.28
"6ALUEOFASSETSGIVENONLEASEINCLUDEDINTANGIBLEASSETS
Directors’
Report
'ROSS#ARRYING!MOUNT 3.63
!CCUMULATED$EPRECIATION 0.68
Management’s
(c) Finance Lease — As Lessee
4HE#OMPANYHASENTEREDINTOTHEFOLLOWINGMATERIALlNANCELEASEARRANGEMENTS
I "//4!GREEMENTWITH)/45TKAL%NERGY3ERVICES,TDINRESPECTOF4ANKAGESFACILITYFORAPERIODOFYEARS,ESSORWILLTRANSFER
Responsibility Report
OWNERSHIPTO)/#,AFTER9EARSAT.),VALUE
II "//4!GREEMENTWITH),&3INRESPECTOF7ATER)NTAKEFACILITYFORAPERIODOFYEARS,ESSORWILLTRANSFEROWNERSHIPTO)/#,
Business
AFTER9EARSAT`CRORE
III 4HE#OMPANYHASENTEREDINTOlNANCELEASEARRANGEMENTSWITH'UJARAT!DANI0ORT,IMITEDRELATEDTO0ORTFACILITIESAT'UJARAT
FORAPERIODOFYEARSANDMONTHS Report on Corporate
IV 4HE#OMPANYHASOBTAINEDVARIOUSLANDSFROMTHEGOVERNMENTSFORPURPOSEOFPLANTSFACILITIESANDOFlCES,EASECASESWHERE
ATTHEINCEPTIONOFTHELEASETHEPRESENTVALUEOFMINIMUMLEASEPAYMENTSISSUBSTATITALLYEQUALTOTHEFAIRVALUEOFLEASED
Governance
ASSETSARECONSIDEREDUNDERlNANCELEASES!LSOREFER.OTE"FORMOREDETAILSONJUDGEMENTSMADEFORLEASECLASSIlCATION
Financial financial
Statements
Standalone
statements
248 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 36 : COMMITMENTS AND CONTINGENCIES (Contd...)
Chairman’s Desk
B. Contingent Liabilities
From the
B.1 Claims against the Company not acknowledged as debt
#LAIMSAGAINSTTHE#OMPANYNOTACKNOWLEDGEDASDEBTAMOUNTINGTO`10,095.39 crore`CRORE AREASUNDER
"`568.18 crore`CRORE BEINGTHEDEMANDSRAISEDBYTHE#ENTRAL%XCISE#USTOMS3ERVICE4AX!UTHORITIES
INCLUDINGINTERESTOF`171.74 crore`CRORE
About IndianOil
"`52.39 crore`CRORE INRESPECTOFDEMANDSFOR%NTRY4AXFROM3TATE'OVERNMENTSINCLUDINGINTERESTOF
`11.69 crore`CRORE
"`2,623.21 crore`CRORE BEINGTHEDEMANDSRAISEDBYTHE6!43ALES4AX!UTHORITIESINCLUDINGINTEREST
OF`1,195.85 crore`CRORE
"`3,263.12 crore`CRORE INRESPECTOF)NCOME4AXDEMANDSINCLUDINGINTERESTOF`419.74 crore
`CRORE
Description of
"`2,402.98 crore`CRORE INCLUDING`1,689.87 crore`CRORE ONACCOUNTOF0ROJECTS
Capitals
FORWHICHSUITSHAVEBEENlLEDINTHE#OURTSORCASESARELYINGWITH!RBITRATOR4HISINCLUDESINTERESTOF`187.48 crore
`CRORE
"`1,185.51 crore`CRORE INRESPECTOFOTHERCLAIMSINCLUDINGINTERESTOF`513.66 crore `
Board of
B.2 Guarantees excluding Financial Guarantees
"4HE #OMPANY HAS ISSUED #ORPORATE 'UARANTEE IN FAVOUR OF THREE BENElCIARIES IE "OLIVARIAN 2EPUBLIC OF 6ENEZUELA
2EPUBLIC 4HE #ORPORACION 6ENEZOLANA DEL 0ETROLEO 3! AND 0E4RO#ARABOBO 3! ON BEHALF OF )NDOIL .ETHERLANDS
"6.ETHERLANDSANASSOCIATECOMPANY TOFULlLLTHEASSOCIATECOMPANYSFUTUREOBLIGATIONSOFPAYMENTOFSIGNATURE
BONUSEQUITYCONTRIBUTIONLOANTOTHEBENElCIARIES4HETOTALAMOUNTSANCTIONEDBYTHE"OARDOF$IRECTORSIS53$
Directors’
Report
MILLION4HEESTIMATEDAMOUNTOFSUCHOBLIGATIONNETOFAMOUNTPAID IS`2,533.81 crore
USD 366.37 million
`CROREn53$MILLION
Management’s
SUBSIDIARIESWITH0%42/.!3#ARIGALI#ANADA"6AND0ROGRESS%NERGY#ANADA,TD4HETOTALAMOUNTSANCTIONEDBYTHE
"OARDOF$IRECTORSIS#!$MILLION4HEESTIMATEDAMOUNTOFSUCHOBLIGATIONNETOFAMOUNTPAID IS`4,558.93
crore
CAD 884.39 millionCRORE
#!$MILLION 4HESANCTIONEDAMOUNTWASREDUCEDBY#!$
MILLIONDUETOWINDINGDOWNOF,.'0LANTDURING
Responsibility Report
"4HE#OMPANYHASISSUED#ORPORATE'UARANTEEONBEHALFOF)NDIAN/IL!DANI'AS0RIVATE,IMITED)/!'0, TOTHEEXTENT
OFOBLIGATIONSOFLATERCOMPANYUNDER0ERFORMANCE"ANK'UARANTEE&ACILITYPROVIDEDTO)/!'0,BY@3TATE"ANKOF)NDIA
3YNDICATE"ANK#ANARA"ANK"ANKOF"ARODA!LLAHABAD"ANK)NDUS)ND"ANK*AMMUAND+ASHMIR"ANK!XIS"ANK
Business
AND)#)#)"ANK4HE#OMPANYSSHAREOFSUCHOBLIGATIONISESTIMATEDAT`3,533.46 crore`CRORE
"4HE #OMPANY HAS ISSUED #ORPORATE 'UARANTEE ON BEHALF OF )NDIAN/IL ,.' 0RIVATE ,IMITED )/,0, TO THE EXTENT OF
OBLIGATIONSOF)/,0,UNDER0ERFORMANCE"ANK'UARANTEE&ACILITYPROVIDEDTO)/,0,BY3TATE"ANKOF)NDIA4HEESTIMATED Report on Corporate
AMOUNTOFSUCHOBLIGATIONISAT`11.40 crore`CRORE
"4HE#OMPANYHASISSUED0ARENT#OMPANY'UARANTEEINFAVOUROF!BU$ABHI.ATIONAL/IL#OMPANYONBEHALFOF5RJA
Governance
C. Commitments
D. Contingent assets
` IN#RORE
March 31, 2019 March 31, 2018
A A customer had lodged a claim against the Company challenging the pricing mechanism -
OFUTILITIESPROVIDED4HEMATTERWASREFERREDTOARBITRATIONANDAWARDWASGIVENINFAVOUR
OFTHE#OMPANY#USTOMERHASAPPROACHED(ONOURABLE(IGH#OURTCHALLENGINGTHEAWARD
OFARBITRATIONAND(ONOURABLE(IGH#OURTVIDEITSINTERIMORDERSDATED!UGUST
AND !PRIL HAS DIRECTED THE CUSTOMER TO DEPOSIT THE PRINCIPAL AMOUNT AND
INTEREST AMOUNT RESPECTIVELY IN THE 2EGISTRY OF THE #OURT #OURT HAS ALSO DIRECTED THAT
THEAMOUNTDEPOSITEDBYTHECUSTOMERSHALLBERELEASEDTOTHECOMPANYUPONFURNISHING
AN UNCONDITIONAL "ANK 'UARANTEE OF THE EQUIVALENT AMOUNT "ASED ON THE DIRECTION
OF THE #OURT THE #OMPANY HAD FURNISHED UNCONDITIONAL "ANK 'URANTEE DURING CURRENT
YEAR 0ENDING RECEIPT OF MONEY THE MANAGEMENT HAS TREATED A PORTION OF THE AMOUNT
RECOVERABLE AS CONTINGENT ASSET PENDING ADJUDICATION OF MATTER WITH (ONOURABLE (IGH
#OURTINTHEPREVIOUSYEAR
B )NRESPECTOF-S+HAZANA0ROJECTSAND)NDUSTRIES0 ,TDFORTHEAMOUNTOFRISKCOST 3.61
CLAIM ALONG WITH SUPERVISION CHARGES ADMITTED BY THE !RBITRATOR IN FAVOUR OF THE
#OMPANY
C )N RESPECT OF -S -ETRO "UILDERS FOR THE AMOUNT OF RISK COST CLAIM ALONG WITH 5.36
SUPERVISIONCHARGESPRICEDISCOUNTANDINTERESTADMITTEDBYTHE!RBITRATORINFAVOUROF
THE#OMPANY
D )NRESPECTOF%LECTRICITY$UTYARREARSCLAIMEDFROM'UJARAT%LECTRICITY"OARD'%" FOR 31.02
STATIONSWEF$ECEMBERBASEDONSIMILARCASEDECIDEDBY'UJARAT(IGH#OURTIN
FAVOUROF)/#,
TOTAL 39.99 116.46
60th Annual Report 2018-19 251
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 37 : RELATED PARTY DISCLOSURES
Chairman’s Desk
As required by Ind AS -24 “Related Party Disclosures”, are given below :
1. Relationship with Entities
From the
A. Details of Subsidiary Companies/Entities and their Subsidiaries:
About IndianOil
,ANKA)/#0,# )/#,3INGAPORE0TE,IMITED
)/#-IDDLE%AST&:% )ND/IL-ONTNEY,IMITED
)NDIAN#ATALYST0RIVATE,IMITEDÏ )/##YPRUS,IMITED
)/#3WEDEN!" )/#,%XPLORATIONAND0RODUCTION/MAN,IMITED
B. The following transactions were carried out with Subsidiary Companies/Entities in the ordinary course of business:
`IN#RORE
Description of
March 31, 2019 March 31, 2018
Capitals
1 Sales of Products/Services 1,595.10
;)NCLUDES SALES TO #HENNAI 0ETROLEUM #ORPORATION ,IMITED `1,211.67 crore
`CRORE AND,ANKA)/#0,#`366.84 crore`CRORE =
Board of
3 Purchase of Products 46,178.75
;)NCLUDES0URCHASEOF0RODUCTSFROM#HENNAI0ETROLEUM#ORPORATION,IMITED`46,178.75
crore`CRORE =
4 Purchase of Raw Materials/Others 9,289.24
;)NCLUDES0URCHASEOF2AW-ATERIALS/THERSFROM)/#,3INGAPORE0TE,IMITED`6,607.35
crore ` CRORE AND )ND/IL 'LOBAL "6 .ETHERLANDS `1,905.29 crore
Directors’
.), =
Report
5 Handling/Other Expenses 7.31
;)NCLUDES(ANDLING/THER%XPENSES TO#HENNAI0ETROLEUM#ORPORATION,IMITED`3.46
Management’s
`0.80 crore `CRORE =
6 Reimbursement of Expenses 25.47
;)NCLUDES 2EIMBURSEMENT OF %XPENSES PERTAINING TO #HENNAI 0ETROLEUM #ORPORATION
Limited `24.03 crore`CRORE =
7 Investments made/(sold) during the year incl Advance for Investment 2,016.47
Responsibility Report
;)NCLUDES )NVESTMENT MADE IN )/#, 3INGAPORE 0TE ,IMITED `2,273.11 crore
`CRORE 0REFERENCE3HARES2EDEMEED
#HENNAI0ETROLEUM#ORPORATION,IMITED
`500.00 crore.), AND)ND/IL'LOBAL"6.ETHERLANDS`242.76 crore
Business
`CRORE =
8 Purchase/(Sale)/Acquisition of Fixed Assets including CWIP 1.03
;)NCLUDES0URCHASE3ALE!CQUISITIONOF&IXED!SSETSINCL#7)0FROM#HENNAI0ETROLEUM Report on Corporate
Corporation Limited `1.03 crore`CRORE =
9 Outstanding Receivables/Loans 3,018.68
Governance
)NDIAN/ILTANKING,IMITED '30,)NDIA4RANSCO,IMITED
&ORMERLYKNOWNAS)/4)NFRASTRUCTURE%NERGY3ERVICES,TD
,UBRIZOL)NDIA0RIVATE,IMITED '30,)NDIA'ASNET,IMITED
0ETRONET6+,IMITED )NDIAN/IL
!DANI'AS0RIVATE,IMITED
)NDIAN/IL0ETRONAS0RIVATE,IMITED -UMBAI!VIATION&UEL&ARM&ACILITY0RIVATE,IMITED
!VI
/IL)NDIA0RIVATE,IMITED +OCHI3ALEM0IPELINE0RIVATE,IMITED
0ETRONET)NDIA,IMITED
(INDUSTAN5RVARAK2ASAYAN,IMITED
0ETRONET,.',IMITED 2ATNAGIRI2ElNERY0ETROCHEMICALS,IMITED
'REEN'AS,IMITED )NDRADHANUSH'AS'RID,IMITED)NCORPORATEDON
)NDIAN/IL0ANIPAT0OWER#ONSORTIUM,IMITED )NDIAN!DDITIVES,IMITED
0ETRONET#),IMITED .ATIONAL!ROMATICS0ETROCHEMICALS#ORPORATION,IMITED
)NDIAN/IL,.'0RIVATE,IMITED ).$/),.ETHERLANDS"6
)NDIAN/IL3KY4ANKING0RIVATE,IMITED 4AAS)NDIA04%,IMITED
3UNTERA.IGERIA,IMITED 6ANKOR)NDIA04%,IMITED
$ELHI!VIATION&UEL&ACILITY0RIVATE,IMITED #EYLON0ETROLEUM3TORAGE4ERMINALS,IMITED
)NDIAN3YNTHETIC2UBBER0RIVATE,IMITED &ALCON/IL'AS"6
)NDIAN/IL2UCHI"IOFUELS,,0Ï 5RJA"HARAT04%,TD)NCORPORATEDON
.0#),
)NDIAN/IL.UCLEAR%NERGY#ORPORATION,IMITED
)/4%NGINEERING#ONSTRUCTION3ERVICES,TD )NDIAN/ILTANKING%NGINEERING#ONSTRUCTION3ERVICES,,#/MAN
3TEWARTSAND,LOYDSOF)NDIA,IMITED *3#+AZAKHSTAN#ASPISHELF
)/4)NFRASTRUCTURES0RIVATE,IMITED )/46)4/-5(%.$)3,)+).3!!46%4!!(54!3
)/45TKAL%NERGY3ERVICES,IMITED )NDIAN/IL3KYTANKING$ELHI0VT,IMITED
04)/4%0#)NDONESIA )/4"IOGAS0RIVATE,IMITED
)/4%NGINEERING0ROJECTS,IMITED &ORMERLYKNOWNAS)/4-ABAGAS0RIVATE,IMITED
60th Annual Report 2018-19 253
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 37 : RELATED PARTY DISCLOSURES (Contd...)
Chairman’s Desk
C) The following transactions were carried out with the related parties in the ordinary course of business:
`IN#RORE
From the
March 31, 2019 March 31, 2018
1 Sales of Products/Services 1,108.21
;)NCLUDES SALES TO )NDIAN/IL 0ETRONAS 0RIVATE ,IMITED `548.21 crore `
CRORE AND )NDIAN 3YNTHETIC 2UBBER 0RIVATE ,IMITED `460.33 crore `
About IndianOil
CRORE =
2 Interest received 52.19
;)NCLUDES INTEREST RECEIVED FROM )NDIAN/IL ,.' 0RIVATE ,IMITED `39.25 crore
`CRORE AND0ETRONET6+,IMITED`11.21 crore.), =
3 Other Operating Revenue/Other Income 370.06
;)NCLUDES/THER/PERATING2EVENUE/THER)NCOMEFROM0ETRONET,.',IMITED`192.40
Description of
crore`CRORE AND)NDIAN3YNTHETIC2UBBER0RIVATE,IMITED`95.79 crore
`CRORE =
Capitals
4 Purchase of Products 5,960.46
;)NCLUDES 0URCHASE OF 0RODUCTS FROM 0ETRONET ,.' ,IMITED `5,768.06 crore
`CRORE =
Board of
6 Interest paid 284.69
;)NCLUDES )NTEREST PAID TO )/4 5TKAL %NERGY 3ERVICES ,IMITED `284.69 crore
`CRORE =
7 Handling/Other Expenses 958.23
;)NCLUDES(ANDLING/THER%XPENSESTO)NDIAN/IL3KY4ANKING0RIVATE,IMITED`432.75
Directors’
crore ` CRORE AND )NDIAN/IL 0ETRONAS 0RIVATE ,IMITED `298.93 crore
Report
`CRORE =
8 Reimbursement of Expenses 1.71
Management’s
9 Investments made/(sold) during the year incl. Advance for Investment 547.23
;)NCLUDES )NVESTMENT MADESOLD IN )NDIAN/IL ,.' 0RIVATE ,IMITED `326.50 crore
.), (INDUSTAN5RVARAKAND2ASAYAN,IMITED`107.08 crore`
CRORE AND)NDIAN/IL!DANI'AS0RIVATE,IMITED`61.50 crore`CRORE =
10 Purchase/(Sale)/Acquisition of Fixed Assets including CWIP 158.44
Responsibility Report
;)NCLUDES 0URCHASE!CQUISITION OF &IXED !SSETS INCL #7)0 FROM )/4 5TKAL %NERGY
Services Limited `147.72 crore`CRORE =
11 Provisions made/(write back) during the year 0.03
Business
;)NCLUDES0ROVISIONMADE'30,)NDIA'ASNET,IMITED`0.03 crore.), =
12 Outstanding Receivables/Loans 718.86
;)NCLUDES /UTSTANDING 2ECEIVABLES,OANS !DVANCES FROM 0ETRONET ,.' ,IMITED Report on Corporate
`286.96 crore ` CRORE 3UNTERA .IGERIA ,IMITED `139.31 crore
`CRORE 0ETRONET6+,IMITED`92.45 crore`CRORE AND
Governance
)NDIAN3YNTHETIC2UBBER0RIVATE,IMITED`87.01 crore`CRORE =
13 Outstanding Payables 3,018.52
;)NCLUDES/UTSTANDINGPAYABLETO)/45TKAL%NERGY3ERVICES,IMITED`2,665.02 crore
`CRORE =
Financial financial
3. Relatives of Key Managerial Personnel and nature of relation with whom transactions are undertaken during the year:
3HRI"62AGHAV2AJU-ANAGER)NDIAN/IL#ORPORATION,IMITED 3ONOF+EY-ANAGERIAL0ERSONNEL
Details relating to the parties referred to in Item No.3 above:
`IN#RORE
March 31, 2019 March 31, 2018
1 Remuneration
3HRI"62AGHAV2AJU 0.24
2 Outstanding Receivables/Loans
3HRI"62AGHAV2AJU
'OVERNMENTRELATEDENTITIESWHERESIGNIlCANTTRANSACTIONSCARRIEDOUT
!PARTFROMTRANSACTIONSREPORTEDABOVETHECOMPANYHASTRANSACTIONSWITHOTHER'OVERNMENTRELATEDENTITIESWHICHINCLUDESBUT
NOTLIMITEDTOTHEFOLLOWING
Name of Government: 'OVERNMENTOF)NDIA#ENTRALAND3TATE'OVERNMENT
Nature of Transactions:
• 3ALEOF0RODUCTSAND3ERVICES
• 0URCHASEOF0RODUCTS
• 0URCHASEOF2AW-ATERIALS
• (ANDLINGAND&REIGHT#HARGESETC
4HESETRANSACTIONSARECONDUCTEDINTHEORDINARYCOURSEOFTHE#OMPANYSBUSINESSONTERMSCOMPARABLETOTHOSEWITHOTHERENTITIES
THATARENOT'OVERNMENT
RELATED
,IQUIDATORHASBEENAPPOINTEDFORWINDINGUPOFCOMPANYWEF!UGUST
4HE*6#HASNOTBEENCLOSEDWOUNDUPASYETHOWEVERTHECOMPANYISNOTCARRYINGOUTANYOPERATIONS
Ï )NDIAN/ILHASDECIDEDTOEXITTHE*OINT6ENTUREANDHASGIVENNOTICEOFITSEXITFROMTHE,,0TOTHEOTHER*6PARTNERVIZ2UCHI
3OYA)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBERSTATINGTHATITWILLEXITTHE,,0WEF*ANUARY
60th Annual Report 2018-19 255
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 37 : RELATED PARTY DISCLOSURES (Contd...)
Chairman’s Desk
5) Key Managerial Personnel
From the
A. Whole Time Directors/Company B. Independent Directors C. Government Nominee Directors
Secretary
3HRI3ANJIV3INGH 3HRI3ANJAY+APOOR 3HRI!SHUTOSH*INDAL
5PTO$ECEMBER
3HRI!+3HARMA5PTO*ANUARY 3HRI0ARINDU+"HAGAT 3MT5RVASHI3ADHWANI
About IndianOil
ANDWEF&EBRUARY 5PTO-AY
3HRI'+3ATISH 3HRI6INOO-ATHUR 3MT3USHMA4AISHETE2ATH
5PTO*ULY
$R3362AMAKUMAR 3HRI3AMIRENDRA#HATTERJEE 3MT)NDRANI+AUSHAL
5PTO-ARCH
3HRI"62AMA'OPAL 3HRI6IVEK2AE5PTO*UNE 3MT3USHMITA$ASGUPTA
Description of
WEF-ARCH
Capitals
3HRI2ANJAN+UMAR-OHAPATRA 3HRI#HITTA2ANJAN"ISWAL
3HRI'URMEET3INGH $R*AGDISH+ISHWAN
WEF*ULY
Board of
D) Details relating to the parties referred to in Item No. 5A & 5B above:
March 31, 2019
`IN#RORE
Key Managerial Personnel Short-Term Post Other Total Sitting Outstanding
Directors’
Employee Employment Long Term Remuneration Fees Loans (Gross)/
Report
"ENElTS "ENElTS "ENElTS Advance
Receivables
A. Whole Time Directors/Company
Management’s
3HRI!+3HARMA
3HRI'+3ATISH
$R3362AMAKUMAR
3HRI"62AMA'OPAL
Responsibility Report
3HRI2ANJAN+UMAR-OHAPATRA
3HRI'URMEET3INGH
Business
3HRI!KSHAY+UMAR3INGH
3HRI+AMAL+UMAR'WALANI
B. Independent Directors
3HRI3ANJAY+APOOR
Report on Corporate
3HRI0ARINDU+"HAGAT
Governance
3HRI6INOO-ATHUR
3HRI3AMIRENDRA#HATTERJEE
3HRI6IVEK2AE
3HRI#HITTA2ANJAN"ISWAL
Financial financial
$R*AGDISH+ISHWAN
3HRI3ANKAR#HAKRABORTI
Statements
Standalone
statements
3HRI$HARMENDRA33HEKHAWAT
TOTAL 5.71 0.75 0.96 7.42 0.67 0.43
256 Indian Oil Corporation Limited 2nd Integrated Annual Report
Notes :
4HISDOESNOTINCLUDETHEIMPACTOFPROVISIONMADEONACTUARIALVALUATIONOFRETIREMENTBENElTLONGTERM3CHEMESANDPROVISION
MADEDURINGTHEPERIODTOWARDS0OST2ETIREMENT"ENElTSASTHESAMEARENOTSEPARATELYASCERTAINABLEFORINDIVIDUALDIRECTORS
)NADDITIONWHOLE
TIME$IRECTORSAREALSOALLOWEDTHEUSEOF#ORPORATIONSCARFORPRIVATEPURPOSESUPTOKMSPERANNUMON
APAYMENTOF`
PERMENSEM
60th Annual Report 2018-19 257
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 37 : RELATED PARTY DISCLOSURES (Contd...)
Chairman’s Desk
6) Trusts
4RANSACTIONSWITH0OST%MPLOYMENT"ENElT0LANSMANAGEDTHROUGHSEPARATETRUST
From the
`IN#RORE
Name of the Trust Post Employment March 31, 2019 March 31, 2018
"ENElT0LAN Contribution by Outstanding Contribution by Outstanding
employer Receivable/ employer Receivable/
About IndianOil
(Payable) (Payable)
1 )/#,2ElNERY$IVISION 0ROVIDENT&UND 190.95 (18.72)
%MPLOYEES0ROVIDENT&UND
2 Indian Oil Corporation Limited 0ROVIDENT&UND 19.17 (6.98)
!SSAM/IL$IVISION %MPLOYEES
Description of
0ROVIDENT&UND
3 0ROVIDENT&UNDFORTHE 0ROVIDENT&UND 208.00 (52.98)
Capitals
%MPLOYEESOF)NDIAN/IL
#ORPORATION,IMITED-ARKETING
$IVISION
Board of
)/#,%MPLOYEES0OST2ETIREMENT 0OST2ETIREMENT 160.94 84.65
-EDICAL"ENElT&UND Medical Scheme
)/#,%MPLOYEES'ROUP'RATUITY 'RATUITY 909.31 (113.63)
4RUST
Indian Oil Corporation Limited 0ENSION3CHEME - -
Directors’
!SSAM/IL$IVISION 3TAFF
Report
0ENSION&UND
Result
3EGMENT2ESULTSEXCLUDING 23,505.28 4,246.56 366.38 - 28,118.22
%XCHANGE'AIN,OSS
3EGMENTAL%XCHANGE'AIN (1,339.77) (48.86) 3.82 - (1,384.81)
,OSS
Segment Results 22,165.51 4,197.70 370.20 - 26,733.41 27,601.52 5,226.22 407.82 - 33,235.56
Less: Unallocable Expenditure
&INANCE#OST 4,311.03
,OSSON3ALEOF 1.60
)NVESTMENTS.ET
,OSSONSALEANDDISPOSAL 152.87
OF!SSETS
%XCHANGE,OSS
.ET 118.34
&AIRVALUE,OSSON 2.77
&INANCIALINSTRUMENTS
CLASSIlEDAS&640,
!MORTISATIONOF&# 148.39
-ONETARY)TEM4RANSLATION
Add: Unallocable Income
)NTEREST$IVIDEND)NCOME 3,045.04
0ROlTON3ALEOF -
)NVESTMENTS.ET
0ROVISIONFORDIMINUTION 1.60
IN)NVESTMENTSWRITTEN
BACK.ET
%XCHANGE'AIN
.ET -
'AINON$ERIVATIVES 0.32
/THERNONOPERATING 81.55
income
0ROlT"EFORE4AX 25,126.92 32,564.28
,ESS)NCOME4AXINCLUDING
DEFERREDTAX 8,232.77
0ROlT!FTER4AX 16,894.15 21,346.12
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 38 : SEGMENT INFORMATION (Contd...)
Chairman’s Desk
Other Information
`IN#RORE
From the
2018-19 2017-18
Petroleum Petro- Other Eliminations Total Petroleum Petro- Other Eliminations Total
Products chemicals Business Products chemicals Business
Segment Assets 2,43,098.77 16,847.70 3,642.41 2,63,588.88 2,10,379.14 14,665.15 2,944.62 2,27,988.91
Corporate Assets
About IndianOil
)NVESTMENTS#URRENT 49,755.38
AND.ON#URRENT
!DVANCES&OR -
Investments
!DVANCE4AX 1,834.45
Interest Accrued On 196.35
)NVESTMENTS"ANK
$EPOSITS
,OANS4O*63UBSIDIARIES 237.13
Description of
Included In Loans and
Receivables
Capitals
$EPOSITSFOR,EAVE -
%NCASHMENT&UNDREFER
.OTE
$ERIVATIVE!SSET 35.56
Board of
Corporate Liabilities
"ORROWINGS3HORT 83,259.91
4ERMAND,ONG4ERM
#URRENT-ATURITIES/F 3,098.81
,ONG
4ERM$EBT
$EFERRED4AX,IABILITY 15,823.07
$ERIVATIVE,IABILIIES 258.40
Directors’
Total Liabilities 2,07,050.21 1,70,572.29
Report
Capital Employed
Segment Wise 1,40,288.28 16,040.19 2,650.39 1,58,978.86
Corporate (50,321.35)
Management’s
$EPRECIATIONAND 6,472.50 958.26 83.53 - 7,514.29
!MORTIZATION
Geographical information
`IN#RORE
Responsibility Report
Revenue from external customers Non-current assets
2018-19 2017-18 2018-19 2017-18
India 5,81,692.71 1,45,911.71
Business
Outside India 24,231.06 181.81
TOTAL 6,05,923.77 5,06,427.59 1,46,093.52 1,31,509.10
Report on Corporate
Revenue from major Products and Service
`IN#RORE
Governance
2018-19 2017-18
-OTOR3PIRIT-3 1,14,704.54
(IGH3PEED$IESEL(3$ 3,03,561.37
3UPERIOR+EROSENE/IL3+/ 13,264.74
Financial financial
Financial Liabilities
A. Borrowings:
Amortised Cost:
4ERM,OANSFROM/IL)NDUSTRY 459.65 462.28 Level 2
$EVELOPMENT"OARD/)$"
&INANCELEASEOBLIGATION 3,510.80 3,983.20 Level 2
&OREIGN#URRENCY"ONDS
53 13,256.62 14,015.75 Level 1
$OLLARS
&OREIGN#URRENCY"ONDS
3INGAPORE 2,091.67 2,125.42 Level 2
$OLLARS
,OANFROM/DISHA'OVERNMENT 707.33 637.29 Level 2
"/THERlNANCIALLIABILITIES
&AIRVALUETHROUGHPROlTANDLOSS
(FVPL):
$ERIVATIVE)NSTRUMENTSATFAIRVALUE 249.07 249.07 Level 2
THROUGHPROlTORLOSS
#/THERlNANCIALLIABILITIES
Fair value through OCI (FVOCI):
Hedging Derivatives
&OREIGNEXCHANGEFORWARDCONTRACTS
9.33
9.33
Level 2
Loans
60th Annual Report 2018-19 261
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 39 : FAIR VALUES (Contd...)
Chairman’s Desk
Notes:
From the
4HE MANAGEMENT ASSESSED THAT FAIR VALUE OF 4RADE 2ECEIVABLES #ASH AND #ASH %QUIVALENTS "ANK "ALANCES 2ECOVERABLE FROM
%MPLOYEE "ENElTS 4RUSTS /THER .ON
DERIVATIVE #URRENT &INANCIAL !SSETS &INANCE ,EASE 2ECEIVABLE 3ECURITY $EPOSITS PAID AND
RECEIVED3HORT
TERM"ORROWINGSINCLUDING#URRENT-ATURITIESOF,ONGTERM"ORROWINGS 4RADE0AYABLES&LOATING2ATE"ORROWINGS
2ECEIVABLES /THER .ON
DERIVATIVE #URRENT &INANCIAL ,IABILITIES AND ,IABILITIES TOWARDS lNANCIAL GUARANTEES APPROXIMATE THEIR
CARRYINGAMOUNTS
About IndianOil
4HEFAIRVALUEOFTHElNANCIALASSETSANDLIABILITIESISINCLUDEDATTHEAMOUNTATWHICHTHEINSTRUMENTCOULDBEEXCHANGEDINACURRENT
TRANSACTIONBETWEENWILLINGPARTIESOTHERTHANINAFORCEDORLIQUIDATIONSALE
Methods and assumptions
4HEFOLLOWINGMETHODSANDASSUMPTIONSWEREUSEDTOESTIMATETHEFAIRVALUESATTHEREPORTINGDATE
Description of
A. Level 1 Hierarchy:
Capitals
I Quoted Equity Shares:#LOSINGQUOTEDPRICEUNADJUSTED IN.ATIONAL3TOCK%XCHANGEOF)NDIA,IMITED
II Quoted Government Securities:#LOSINGPUBLISHEDPRICEUNADJUSTED IN#LEARING#ORPORATIONOF)NDIA,IMITED
III Foreign Currency Bonds - US Dollars: #LOSINGPRICEFORTHESPECIlCBONDCOLLECTEDFROM"ANK
Board of
I $ERIVATIVEINSTRUMENTSATFAIRVALUETHROUGHPROlTORLOSS2EPLACEMENTCOSTQUOTEDBYINSTITUTIONSFORSIMILARINSTRUMENTSBY
EMPLOYINGUSEOFMARKETOBSERVABLEINPUTS
II Hedging Derivatives at fair value through OCI : 2EPLACEMENTCOSTQUOTEDBYINSTITUTIONSFORSIMILARINSTRUMENTSBYEMPLOYING
USEOFMARKETOBSERVABLEINPUTS
III Loans to employees/PMUY Loan:$ISCOUNTINGFUTURECASHmOWSUSINGRATESCURRENTLYAVAILABLEFORITEMSONSIMILARTERMSCREDIT
Directors’
RISKANDREMAININGMATURITIES
Report
IV Finance Lease Obligation:&OROBLIGATIONARRIVEDBASEDON)22IMPLICITRATEAPPLICABLEONTHEREPORTINGDATEANDFOROBLIGATION
ARRIVEDBASEDONINCREMENTALBORROWINGRATEAPPLICABLERATEFORREMAININGMATURITY
Management’s
from Odisha Government:$ISCOUNTINGFUTURECASHmOWSUSINGRATESCURRENTLYAVAILABLEFORITEMSONSIMILARTERMSCREDITRISKAND
REMAININGMATURITIES%XCLUDINGmOATINGRATEBORROWINGS
VI Term Loans from Oil Industry Development Board (OIDB): $ISCOUNTING FUTURE CASH mOWS USING RATES CURRENTLY AVAILABLE FOR
SIMILARTYPEOFBORROWINGS/)$""ORROWING2ATE USINGEXITMODELASPER)ND!3
Responsibility Report
C. Level 3 Hierarchy:
I Unquoted Equity Instruments:&AIRVALUESOFTHEUNQUOTEDEQUITYSHARESHAVEBEENESTIMATEDUSINGA$#&MODEL4HEVALUATION
Business
REQUIRESMANAGEMENTTOMAKECERTAINASSUMPTIONSABOUTTHEMODELINPUTSINCLUDINGFORECASTCASHmOWSDISCOUNTRATECREDIT
RISK AND VOLATILITY 4HE PROBABILITIES OF THE VARIOUS ESTIMATES WITHIN THE RANGE CAN BE REASONABLY ASSESSED AND ARE USED IN
MANAGEMENTSESTIMATEOFFAIRVALUEFORTHESEUNQUOTEDEQUITYINVESTMENTS
Report on Corporate
II Non Convertible Redeemable Preference Shares, Compulsorily Convertible Debentures and Loan to Related parties - Suntera:&AIR
VALUEOF0REFERENCESHARES$EBENTURESAND,OANTO3UNTERAISESTIMATEDWITHTHEHELPOFEXTERNALVALUERBYDISCOUNTINGFUTURE
Governance
CASHmOWS4HEVALUATIONREQUIRESMANAGEMENTTOUSEUNOBSERVABLEINPUTSINTHEMODELOFWHICHTHESIGNIlCANTUNOBSERVABLE
INPUTSAREDISCLOSEDINTHETABLESBELOW-ANAGEMENTREGULARLYASSESSESARANGEOFREASONABLYPOSSIBLEALTERNATIVESFORTHOSE
SIGNIlCANTUNOBSERVABLEINPUTSANDDETERMINESTHEIRIMPACTONTHETOTALFAIRVALUE
Financial financial
Statements
Standalone
statements
262 Indian Oil Corporation Limited 2nd Integrated Annual Report
Unquoted Equity Instruments carried at FVOCI includes following investments for which sensitivity disclosure are not disclosed:
Carrying Value (` in Crore)
March 31, 2019 March 31, 2018
7OODLANDS-ULTI
SPECIALITY(OSPITAL,IMITED 0.10
)NTERNATIONAL#OOPERATIVE0ETROLEUM!SSOCIATION.EW9ORK 0.02
Reconciliation of fair value measurement of Assets and Liabilities under Level 3 hierarchy of Fair Value measurement:
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS
Chairman’s Desk
Financial Risk Factors
From the
4HE#OMPANYSPRINCIPALlNANCIALLIABILITIESOTHERTHANDERIVATIVESCOMPRISE"ORROWINGSTRADEANDOTHERPAYABLESSECURITYDEPOSITS
EMPLOYEELIABILITIESANDlNANCELEASEOBLIGATION4HEMAINPURPOSEOFTHESElNANCIALLIABILITIESISTOlNANCETHE#OMPANYSOPERATIONS
ANDTOPROVIDEGUARANTEESTOSUPPORTITSOPERATIONS4HE#OMPANYSPRINCIPALlNANCIALASSETSINCLUDELOANSADVANCESTRADEANDOTHER
RECEIVABLES SHORT
TERM DEPOSITS AND CASHCASH EQUIVALENTS THAT DERIVE DIRECTLY FROM ITS OPERATIONS 4HE #OMPANY ALSO HOLDS &64/#)
INVESTMENTSANDENTERSINTODERIVATIVETRANSACTIONS
About IndianOil
4HE#OMPANYISEXPOSEDTOANUMBEROFDIFFERENTlNANCIALRISKSARISINGFROMNATURALBUSINESSEXPOSURESASWELLASITSUSEOFlNANCIAL
INSTRUMENTSINCLUDINGMARKETRISKRELATINGTOINTERESTRATECOMMODITYPRICESFOREIGNCURRENCYEXCHANGERATESANDEQUITYPRICECREDIT
RISKANDLIQUIDITYRISK
4HE 2ISK -ANAGEMENT #OMMITTEE COMPRISED OF SENIOR MANAGEMENT OVERSEES THE MANAGEMENT OF THESE RISKS 4HE #OMPANYS SENIOR
MANAGEMENTISSUPPORTEDBYA2ISK-ANAGEMENT#OMPLIANCE"OARDTHATADVISESONlNANCIALRISKSANDTHEAPPROPRIATElNANCIALRISK
Description of
GOVERNANCE FRAMEWORK FOR THE #OMPANY 4HE 2ISK -ANAGEMENT #OMMITTEE PROVIDES ASSURANCE TO THE #OMPANYS SENIOR MANAGEMENT
THATTHE#OMPANYSlNANCIALRISKACTIVITIESAREGOVERNEDBYAPPROPRIATEPOLICIESANDPROCEDURESANDTHATlNANCIALRISKSAREIDENTIlED
Capitals
MEASUREDANDMANAGEDINACCORDANCEWITHTHE#OMPANYSPOLICIESRISKOBJECTIVESANDRISKAPPETITE
4HE#OMPANYSREQUIREMENTOFCRUDEOILAREMANAGEDTHROUGHINTEGRATEDFUNCTIONHANDLEDTHROUGHITSINTERNATIONALTRADEANDOPTIMIZATION
DEPARTMENT!LLDERIVATIVEACTIVITIESFORRISKMANAGEMENTPURPOSESARECARRIEDOUTBYSPECIALISTTEAMSTHATHAVETHEAPPROPRIATESKILLS
Board of
4HE"OARDOF$IRECTORSOVERSEETHERISKMANAGEMENTACTIVITIESFORMANAGINGEACHOFTHESERISKSWHICHARESUMMARISEDBELOW
A. Market risk
-ARKETRISKISTHERISKTHATTHEFAIRVALUEOFFUTURECASHmOWSOFAlNANCIALINSTRUMENTWILLmUCTUATEBECAUSEOFCHANGESINMARKETPRICES
4HEMAJORCOMPONENTSOFMARKETRISKAREINTERESTRATERISKFOREIGNCURRENCYRISKCOMMODITYPRICERISKANDOTHERPRICERISKVIZEQUITY
SHARES ETC &INANCIAL INSTRUMENTS AFFECTED BY MARKET RISK INCLUDE "ORROWINGS $EPOSITS &64/#) INVESTMENTS AND DERIVATIVE lNANCIAL
Directors’
INSTRUMENTS
Report
4HESENSITIVITYANALYSISINTHEFOLLOWINGSECTIONSRELATETOTHEPOSITIONASAT-ARCHAND-ARCH
Management’s
1. Interest Rate Risk
4HE#OMPANYISEXPOSEDTOINTERESTRATERISKFROMTHEPOSSIBILITYTHATCHANGESININTERESTRATESWILLAFFECTFUTURECASHmOWSOFA
lNANCIAL INSTRUMENT PRINCIPALLY lNANCIAL DEBT 4HE #OMPANYS EXPOSURE TO THE RISK OF CHANGES IN MARKET INTEREST RATES RELATES
Responsibility Report
PRIMARILYTOTHE#OMPANYSLONG
TERMDEBTOBLIGATIONSWITHmOATINGINTERESTRATES
4HE#OMPANYMANAGESTOMAINTAINAMIXBETWEENlXEDANDmOATINGRATESFORRUPEEANDFOREIGNCURRENCYLOANSBASEDONLIQUIDITY
AVAILABILITYOFCOSTEFFECTIVEINSTRUMENTSANDCONSIDERINGTHEMARKETREGULATORYCONSTRAINTSETC!SAT-ARCHAPPROXIMATELY
Business
59% OFTHE#OMPANYSBORROWINGSAREATAlXEDRATEOFINTEREST-ARCH
4HE SENSITIVITY TO A REASONABLY POSSIBLE CHANGE IN INTEREST RATES ON THAT PORTION OF LOANS AND BORROWINGS AFFECTED WITH ALL OTHER
VARIABLESHELDCONSTANTONmOATINGRATEBORROWINGSISASFOLLOWS Report on Corporate
4HE EFFECTS OF MOST EXCHANGE RATE mUCTUATIONS ARE ABSORBED IN BUSINESS OPERATING RESULTS WHICH ARE OFFSET BY CHANGING COST
COMPETITIVENESS LAGS IN MARKET ADJUSTMENTS TO MOVEMENTS IN RATES TO ITS OTHER NON
lNANCIAL ASSETS LIKE INVENTORY ETC &OR THIS
REASONTHETOTALEFFECTOFEXCHANGERATEmUCTUATIONSISNOTIDENTIlABLESEPARATELYINTHE#OMPANYSREPORTEDRESULTS
3. Commodity Price Risk
4HE#OMPANYISEXPOSEDTOVARIOUSCOMMODITYPRICERELATEDRISKSUCHAS2ElNERY-ARGINSIE$IFFERENTIALBETWEENTHEPRICESOF
PETROLEUMPRODUCTSCRUDEOIL#RUDE/IL0RICEmUCTUATIONONACCOUNTSOFINVENTOTYVALUATIONmUCTUATIONANDCRUDEOILIMPORTSETC
!SPERAPPROVEDRISKMANAGEMENTPOLICYTHE#OMPANYCANUNDERTAKERElNERYMARGINHEDGINGINVENTORYHEDGINGANDCRUDEOILPRICE
HEDGINGTHROUGHSWAPSOPTIONSANDFUTURESINTHE/4#MARKETASWELLASDOMESTICEXCHANGESTOMITIGATETHERISKWITHINTHEAPPROVED
LIMITS
4HE#OMPANYSEXPOSUREOFVARIOUSINVENTORIESASATTHEENDTHElNANCIALYEARISPROVIDEDBELOW
)N--4
March 31, 2019 March 31, 2018
Inventory
2AW-ATERIALS 8.248
3TOCKIN0ROCESS 1.561
&INISHED0RODUCTS 4.682
3TOCKIN4RADE 1.818
$UETOVARIATIONINPRICESTHE#OMPANYINCURREDINVENTORYGAIN,OSS OF`4,172.26 crores DURINGTHECURRENTYEAR0REVIOUS9EAR
`CRORES
60th Annual Report 2018-19 265
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Chairman’s Desk
#ATEGORY
WISEQUANTITATIVEDATAABOUTCOMMODITYDERIVATIVETRANSACTIONSTHATAREOUSTANDINGASATTHEENDTHElNANCIALYEARISGIVEN
BELOW
From the
1UANTITYINLAKHBBLS
March 31, 2019 March 31, 2018
Margin Hedging 15.75
About IndianOil
4HESENSITIVITYTOAREASONABLYPOSSIBLECHANGEINPRICEOFCRUDEOILRElNERYMARGINONTHEOUTSTANDINGCOMMODITYHEDGINGPOSITIONAS
ON-ARCH
Particulars Increase/Decrease %FFECTONPROlTBEFORE Increase/Decrease %FFECTONPROlTBEFORETAX
in % tax (` in Crore) in % (` in Crore)
March 31, 2019 March 31, 2018
Margin Hedging +10% (16.49)
Description of
Margin Hedging -10% 16.49
Capitals
4. Equity Price Risk
4HE #OMPANYS INVESTMENT IN LISTED AND NON
LISTED EQUITY SECURITIES OTHER THAN ITS INVESTMENT IN *OINT 6ENTURES!SSOCIATES AND
Board of
4HEEXPOSURETOLISTEDEQUITYSECURITIESVALUEDATFAIRVALUEWAS`18,650.71 crore!NINCREASEDECREASEOFONTHE.3%MARKET
INDEXCOULDHAVEANIMPACTOFAPPROXIMATELY`932.54 crore ONTHE/#)ANDEQUITYATTRIBUTABLETOTHE#OMPANY4HESECHANGESWOULD
NOTHAVEANEFFECTONPROlTORLOSS
Directors’
Report
I #LASSIlCATIONOFDERIVATIVES
4HE#OMPANYISEXPOSEDTOCERTAINMARKETRISKSRELATINGTOITSONGOINGBUSINESSOPERATIONSASEXPLAINEDABOVE4HE#OMPANYHAS
Management’s
3TATEMENTOF0ROlTAND,OSSINSUBSEQUENTPERIODSONSETTLEMENTOFRESPECTIVECONTRACTS
$ERIVATIVESAREONLYUSEDFORECONOMICHEDGINGPURPOSESANDNOTASSPECULATIVEINVESTMENTS(OWEVERWHEREDERIVATIVESDONOTMEET
THEHEDGEACCOUNTINGCRITERIATHEYAREACCOUNTEDFORATFAIRVALUETHROUGHPROlTORLOSS)NFORMATIONABOUTTHEDERIVATIVESUSEDBY
THE#OMPANYANDOUTSTANDINGASATTHEENDOFTHElNANCIALYEARISPROVIDEDBELOW
Responsibility Report
` in Crore
/THERlNANCIAL!SSETS,IABILITIES March 31, 2019 March 31, 2018
Derivatives not designated as hedging instruments
Business
&OREIGNEXCHANGEFORWARDCONTRACTS
,OANS
/THERlNANCIAL,IABILITIES (13.05)
&OREIGNEXCHANGEFORWARDCONTRACTS
,OANS
/THERlNANCIAL!SSETS -
&OREIGNEXCHANGEFORWARDCONTRACTS
#RUDE0RODUCT,IABILITIES - Report on Corporate
&OREIGN%XCHANGECURRENCYSWAP (236.02)
#OMMODITY&ORWARD#ONTRACTS -
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Chairman’s Desk
` IN#RORE
As at March 31, 2019 Maturity
From the
Less than 1 1 to 3 3 to 6 6 to 12 More than Total
month months months months 12 Months
Foreign exchange forward contracts- Loans
.OMINALAMOUNT - - 713.35 - - 713.35
!VERAGEFORWARDRATE - - 71.34 - - -
About IndianOil
Commodity forward contracts- Margin Hedging
.OMINALVOLUME1UANTITYINLAKHBBLS 3.00 6.00 4.50 1.50 0.75 15.75
.OMINALAMOUNT` CRORE 36.38 72.76 59.49 21.64 10.19 200.46
!VERAGEFORWARDRATEBBL 17.54 17.54 19.12 20.86 19.65 -
4HEIMPACTOFTHEHEDGINGINSTRUMENTSONTHE"ALANCE3HEETISASUNDER
Description of
` IN#RORE
Capitals
As at March 31, 2019 Foreign exchange Foreign exchange forward Commodity forward
forward contracts- contracts- Crude/Product contracts- Margin
Loans Liablities Hedging
Board of
Hedging Instruments Financial Liabilities Financial Assets
#HANGEINFAIRVALUEUSEDFORMEASURINGINEFFECTIVENESS (39.94) 4.14 59.92
FORTHEPERIOD&9
'AIN,OSS
Hedge Items
4HEIMPACTOFTHE(EDGED)TEMSONTHE"ALANCE3HEETISASFOLLOWS
Directors’
Report
` IN#RORE
As at March 31, 2019 Loans Crude/ Margin
Product Hedging
Management’s
"ALANCEIN#ASHmOWHEDGERESERVEASATTHEENDOFTHEYEARFORCONTINUINGHEDGESNETOFTAX (1.08) - 23.12
#HANGEINVALUEOFTHEHEDGEDITEMSUSEDFORMEASURINGINEFFECTIVENESSFORTHEPERIOD&9
39.94 (4.14) (59.92)
'AIN,OSS
4HEEFFECTOFTHECASHmOWHEDGEINTHE3TATEMENTOF0ROlTAND,OSSAND/THER#OMPREHENSIVE)NCOMEISASFOLLOWS
Responsibility Report
` IN#RORE
FY 2018-19 Foreign exchange Foreign exchange Highly probable
forward contracts- forward contracts- forecast sales
Business
Loans Crude/Product
Liablities
4OTALHEDGINGGAINLOSS RECOGNISEDIN/#) (39.94) 4.14 59.92 Report on Corporate
)NCOMETAXONABOVE 13.96 (1.45) (20.95)
)NEFFECTIVENESSRECOGNISEDINPROlTORLOSS - - -
Governance
,INEITEMINTHESTATEMENTOFPROlTORLOSSTHATINCLUDESTHE NA NA NA
RECOGNIZEDINEFFECTIVENESS
!MOUNTRECLASSIlEDFROM/#)TOPROlTORLOSS (38.28) 4.14 24.36
)NCOMETAXONABOVE 13.38 (1.45) (8.51)
Financial financial
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Chairman’s Desk
4HETABLEBELOWSUMMARISESTHEMATURITYPROlLEOFTHE#OMPANYSlNANCIALLIABILITIESBASEDONCONTRACTUALPAYMENTS
` IN#RORE
From the
On demand Less than 3 3 to 12 1 to 5 > 5 years Total
months months years
Year ended March 31, 2019
"ORROWINGS
About IndianOil
4RADEPAYABLES
/THERlNANCIALLIABILITIES
&INANCIALGUARANTEECONTRACTS
$ERIVATIVES
37,361.22 70,435.06 28,776.75 32,084.11 3,198.28 1,71,855.42
Year ended March 31, 2018
"ORROWINGS
Description of
4RADEPAYABLES
/THERlNANCIALLIABILITIES
Capitals
&INANCIALGUARANTEECONTRACTS
$ERIVATIVES
38,743.70 57,018.95 19,596.53 12,887.30 6,363.77 1,34,610.25
"ASEDONTHEMAXIMUMAMOUNTTHATCANBECALLEDFORUNDERTHElNANCIALGUARANTEECONTRACT
Board of
#ONCENTRATIONSARISEWHENANUMBEROFCOUNTERPARTIESAREENGAGEDINSIMILARBUSINESSACTIVITIESORACTIVITIESINTHESAMEGEOGRAPHICAL
REGIONORHAVEECONOMICFEATURESTHATWOULDCAUSETHEIRABILITYTOMEETCONTRACTUALOBLIGATIONSTOBESIMILARLYAFFECTEDBYCHANGESIN
ECONOMICPOLITICALOROTHERCONDITIONS#ONCENTRATIONSINDICATETHERELATIVESENSITIVITYOFTHE#OMPANYSPERFORMANCETODEVELOPMENTS
AFFECTINGAPARTICULARINDUSTRY
)NORDERTOAVOIDEXCESSIVECONCENTRATIONSOFRISKTHE#OMPANYSPOLICIESANDPROCEDURESINCLUDESPECIlCGUIDELINESTOFOCUSONTHE
Directors’
MAINTENANCEOFADIVERSIlEDPORTFOLIO)DENTIlEDCONCENTRATIONSOFCREDITRISKSARECONTROLLEDANDMANAGEDACCORDINGLY
Report
E. Collateral
!S#OMPANYHASBEENRATEDINVESTMENTGRADEBYVARIOUSDOMESTICANDINTERNATIONALRATINGAGENCIESTHEREHASBEENNOREQUIREMENTOF
Management’s
COUNTERPARTIES
Responsibility Report
&OR THE PURPOSE OF THE #OMPANYS CAPITAL MANAGEMENT CAPITAL INCLUDES ISSUED EQUITY CAPITAL SHARE PREMIUM AND ALL OTHER EQUITY
RESERVESATTRIBUTABLETOTHEEQUITYHOLDERSOFTHEPARENT4HEPRIMARYOBJECTIVEOFTHE#OMPANYSCAPITALMANAGEMENTISTOMAXIMISETHE
SHAREHOLDERVALUE
Business
4HE#OMPANYMANAGESITSCAPITALSTRUCTUREANDMAKESADJUSTMENTSINLIGHTOFCHANGESINECONOMICCONDITIONSANDREQUIREMENTS4O
MAINTAINORADJUSTTHECAPITALSTRUCTURETHE#OMPANYMAYADJUSTTHEDIVIDENDPAYMENTTOSHAREHOLDERSRETURNCAPITALTOSHAREHOLDERSOR
ISSUENEWSHARES4HE#OMPANYMONITORSCAPITALUSINGDEBTEQUITYRATIOWHICHISBORROWINGSDIVIDEDBY%QUITY4HE#OMPANYSENDEAVOUR Report on Corporate
ISTOKEEPTHEDEBTEQUITYRATIOAROUND
`IN#RORE
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 44 : RESEARCH AND DEVELOPMENT COSTS
Chairman’s Desk
2ESEARCHAND$EVELOPMENT%XPENSESOF`137.15 Crore `CRORE HAVEBEENCAPITALIZEDAND `300.19 Crore `
CRORE HAVEBEENACCOUNTEDFORINTHE3TATEMENTOF0ROlTAND,OSSDURINGTHEYEAR$ETAILEDBREAKUPOFTOTALEXPENDITUREISASUNDER
From the
A. CAPITAL EXPENSES (FIXED ASSETS)
`IN#RORE
S. Asset Block Gross Block Additions Transferred Transfer/ Gross Work-in- Additions Transferred Work-in- Total Capital
No. as at 1 Apr during the from CWIP Deduction/ Block Progress during to Fixed Progress Expenditure
About IndianOil
2018 year Disposal as at as at the year Assets as at 31
during the 31 Mar 1 Apr (Capitalized) Mar 2019
year 2019 2018
1 2 3 4 8
(a) Fixed Assets
1 ,AND
&REE(OLD
377.26
-
Description of
2 "UILDING2OADSETC
101.14
28.36
3 0LANT%QUIPMENT 599.51 36.14
Capitals
4 /FlCE%QUIPMENT 22.26
3.71
4RANSPORT%QUIPMENT
0.06
-
&URNITURE&IXTURES 13.57 0.45
Board of
1 2IGHTOFWAY
-
-
2 ,ICENSES4ECHNICAL
0.11
-
+NOW
HOW
3 #OMPUTER3OFTWARE
11.92
2.68
1.94 10.09 - - 12.03 - 2.68 - 2.68 12.77
TOTAL 1,056.96 79.51 13.85 23.07 1127.25 27.55 57.64 13.85 71.34 137.15
Directors’
Report
`IN#RORE
Management’s
2017 the year 2018 Apr 2017 (Capitalized) Mar 2018
1 2 3 4 8
(a) Fixed Assets
1 ,AND
&REE(OLD
Responsibility Report
2 "UILDING2OADSETC
3 0LANT%QUIPMENT
4 /FlCE%QUIPMENT
Business
4RANSPORT%QUIPMENT
&URNITURE&IXTURES
$RAINAGE3EWAGE
Sub Total 972.79 60.92 24.47 3.16 1,055.02 27.45 24.57 24.47 27.55 85.49 Report on Corporate
(b) Intangible Assets
1 2IGHTOFWAY
Governance
TOTAL 974.45 61.20 24.47 3.16 1,056.96 27.45 24.57 24.47 27.55 85.77
Statements
Standalone
statements
272 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 45 : DISCLOSURE RELATING TO CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE
Chairman’s Desk
4HEDISCLOSUREINRESPECTOF#32%XPENDITUREISASUNDER
` IN#RORE
From the
Particualrs March 31, 2019 March 31, 2018
(a) Gross amount required to be spent by the company during the year
Annual CSR Allocation 490.60
About IndianOil
#ARRYFORWARDFROMPREVIOUSYEAR -
Gross amount required to be spent 490.60 331.05
Description of
In cash Yet to be paid Total In cash Yet to be paid Total
In cash** In cash**
Capitals
I #ONSTRUCTIONACQUISITIONOFANYASSETS
II /NPURPOSESOTHERTHANI ABOVE
Board of
Educational Scholarship 2.68 - 2.68
3WACHH"HARAT 7.53 0.73 8.26
%DUCATIONEMPLOYMENTVOCATIONALSKILLS 204.71 2.85 207.56
!DMINISTRATION%XPENSESTRAININGETC 22.45 - 22.45
Directors’
$RINKING7ATER 14.41 0.72 15.13
Report
0ROMOTIONOF.ATIONAL(ERITAGE!RTAND#ULTURE 0.48 - 0.48
/THEREXPENSES 40.26 0.17 40.43
Management’s
Grand Total (i) and (ii) 484.07 6.53 490.60 287.13 43.92 331.05
0ROVISIONSMADEFORLIABILITIESINCURRED
Responsibility Report
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
274 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 46 : DISCLOSURE ON GOVERNMENT GRANTS (Contd...)
Chairman’s Desk
2 DBTL Capital Grant
From the
4HECOMPANYHASRECEIVED'OVERNMENTGRANTFORROLLOUTOF$"4,SCHEMELAUNCHEDBY-/0.'TOWARDSDEVELOPMENTACQUISITION
OFSOFTWARELICENSESDATAPROCESSINGEQUIPMENTFOREFFECTIVEIMPLEMENTATIONOFPLATFORMFORDISPESNINGOFSUBSIDYTOCUSTOMERS
PURCHASING,0'UNDER$"4,SCHEME4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHISNIL .), $URING
THEYEARTHECOMPANYHASRECOGNISEDNIL`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITAL
GRANTS
About IndianOil
3 Capital Grant in respect of Excise duty,Custom duty and GST waiver
4HECOMPANYHASRECEIVEDGRANTINRESPECTOF#USTOMDUTYWAIVERONIMPORTONCAPITALGOODS%XCISEDUTYWAIVERAND'34WAIVER
ONPURCHASEOFGOODSFROMLOCALMANUFACTURERIN)NDIAUNDERTHECERTIlCATEISSUEDBY$EPARTMENTOF3CIENTIlCAND)NDUSTRIAL
2ESEARCH$3)2 4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`52.52 crore`CRORE 4HE
GOODSSOIMPORTEDORPROCUREDFROMLOCALMANUFACTURERSHALLNOTBETRANSFERREDORSOLDFORAPERIODOFlVEYEARSFROMDATEOF
INSTALLATION$URINGTHEYEARTHECOMPANYHASRECOGNISED`7.41 crore`CRORE INTHESTATEMENTOFPROlTANDLOSS
Description of
ASAMORTISATIONOFCAPITALGRANTS
Capitals
4 Capital Grant in respect of Research projects
4HECOMPANYHASRECEIVEDCAPITALGRANTFROMVARIOUSAGENCIESINRESPECTOFPROCUREMENTSETTINGUPOF#APITALASSETSFORRESEARCH
Board of
5 Capital Grant in respect of Entry Tax Exemption from Odisha Govt.
%NTRY4AXEXEMPTIONRECEIVEDFROM/DISHA'OVERNMENTFOR0ARADIP2ElNERY0ROJECTHASBEENRECOGNIZEDAS#APITAL'RANTAND
GROSSEDUPWITHTHECONCERNED!SSETS4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`116.31 crore
`CRORE $URINGTHEYEARTHECOMPANYHASRECOGNISED`5.29 crore`CRORE INTHESTATEMENTOFPROlTAND
LOSSASAMORTISATIONOFCAPITALGRANTS
Directors’
6 Capital Grant in respect of demonstration unit
Report
'RANTRECEIVEDFROM/)$"FORSETTINGUPOFDEMONSTRATIONUNITAT'UWAHATIRElNERYWITHTHECOMPANYS2$DEVELOPED)NDA$EPT'
TECHNOLOGY4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`78.65 crore`CRORE $URINGTHE
Management’s
7 Capital Grant in respect of interest subsidy
4HECOMPANYHASRECEIVEDCAPITALGRANTINRESPECTOFINTERESTSUBSIDYONLOANSTAKENFROM/)$"4HEUNAMORTIZEDCAPITALGRANT
AMOUNTASON-ARCHIS`6.21 crore`CRORE $URINGTHEYEARTHECOMPANYHASRECOGNISED`0.27 crore
Responsibility Report
`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITALGRANTS
8 Capital Grant in form of Interest Free Loan
4HECOMPANYHASRECEIVEDCAPITALGRANTINTHEFORMOFINTERESTFREELOANSFROM/RISSA'OVERNMENTFORAPERIODOFYEARS
Business
4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`1,352.98 crore`CRORE $URINGTHEYEAR
the company has recognised `78.56 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSACCOUNTASAMORTISATIONOF
CAPITALGRANTS Report on Corporate
4HECOMPANYHASRECEIVEDCAPITALlNANCIALASSISTANCEFROM-INISTRYOF.EWAND2ENEWABLE%NERGYINRESPECTOFPROCUREMENT
ANDINSTALLATIONOF3OLAR0ANELSFOR0OWER'ENERATION4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`4.34
crore `CRORE $URINGTHEYEARTHECOMPANYHASRECOGNISED`0.16 crore`CRORE INTHESTATEMENTOF
PROlTANDLOSSASAMORTISATIONOFCAPITALGRANTS
Financial financial
10 Capital Grant in respect of Hydrogen blended Natural Gas project at Rajghat DTC
4HECOMPANYHASRECEIVEDCAPITALGRANTOF`6.00 crore .), TOCARRYOUTITSSTUDYPILOTPROJECTOFHYDROGENBLENDED
Statements
Standalone
statements
!N AMOUNT OF `58.67 crore ` CRORE ON ACCOUNT OF IMPAIRMENT LOSSES ON RECEIVABLES IS RECOGNISED UNDER 0ROVISION FOR
$OUBTFUL$EBTS!DVANCES#LAIMS#7)03TORESETC2EFER.OTE
4HE#OMPANYDISCLOSEINFORMATIONONREPORTABLESEGMENTASPER)ND!3UNDER.OTE
3EGMENTAL)NFORMATION!NAMOUNTOF
`108.82 crore ISRECOGNISEDOVERTIMEUNDER2EVENUEFROMCONTRACTWITHCUSTOMERS
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 48 : OTHER DISCLOSURES
Chairman’s Desk
)N THE MATTER OF 50 %NTRY 4AX CONSEQUENT UPON (ONBLE !LLAHABAD (IGH #OURT ORDER DATED -AY )/#, HAS PAID TOTAL
OUTSTANDING PRINCIPAL AMOUNT OF ENTRY TAX AND CHALLENGED THE INTEREST AMOUNT !S PER THE LATEST STATUS IN THE MATTER (ONBLE
From the
3UPREME#OURTUNDERITSORDERDATED!PRILREMAMDEDTHEMATTERBACKTO(ONBLE!LLAHABAD(IGH#OURTTODECIDETHE
INTERESTAFRESHONMERIT!CCORDINGLY)/#,lLEDSTAYAPPLICATIONIN(ONBLE!LLAHABAD(IGH#OURTON!PRILFORSTAYOF
INTERESTDEMANDRAISEDBYCOMMERCIALTAXDEPARTMENT4HEINTERESTLIABILITYINTHISREGARDHASBEENFULLYPROVIDEDFORINTHEBOOKSOF
ACCOUNT
About IndianOil
$URING THE YEAR COMPANY HAS SETTLED ITS LIABILITY FOR ENTRY TAX IN THE 3TATE OF "IHAR CONSEQUENT TO THE ORDER OF #OMMERCIAL 4AX
4RIBUNAL0ATNAONDIRECTIONBY(ONBLE3UPREME#OURT ANDACCORDINGLYANAMOUNTOF`1,155.02 croreBEINGPROVISIONNOMORE
REQUIREDHASBEENWRITTENBACKANDINCLUDEDINPROVISIONFORCONTINGENCIESWRITTENBACKIN/THER/PERATING2EVENUE
4HEREVISIONOF%MPLOYEES0AYAND!LLOWANCESWASDUEWEF*ANUARY"ASEDONPRESIDENTIALDIRECTIVEISSUEDON/CTOBER
DUESINRESPECTOFEXECUTIVESHAVEBEENSETTLED(OWEVERTHEREVISIONOFPAYANDALLOWANCESFORWORKMENISUNDERlNALISATION
WHERELIABILITIESHAVEBEENASCERTAINEDONSIMILARLINES!NAMOUNTOF`1,650.00#ROREHASBEENCARRIEDASLIABILITYASON-ARCH
Description of
TOWARDSDUESONTHISACCOUNT
Capitals
$URINGTHEYEARTHE#OMPANYHASCONSIDEREDTHEDEPOSITSAGAINSTITSLIABILITYFORLEAVEENCASHMENTFUNDASQUALIFYINGINSURANCE
POLICYASPER)ND!3!CCORDINGLYITHASNETTEDOFFLIABILITYFORLEAVEENCASHMENTAGAINSTDEPOSITSFORLEAVEENCASHMENTFUND
AND THE AMOUNT DEPOSITED IN EXCESS OF LEAVE ENCASHMENT LIABILITY IS SHOWN UNDER !DVANCE TO %MPLOYEE "ENElT 4RUST&UND
Board of
ESTIMATEFORCASHmOWPROJECTIONSTOYEARSASAGAINSTYEARSEARLIER4HISBEINGTHElRSTYEAROFCHANGETHE#OMPANYALSOTESTED
FORIMPAIRMENTCONSIDERINGCASHmOWPROJECTIONOFYEARSWHERETHERECOVERABLEAMOUNTEXCEEDEDTHECARRYINGVALUEASON-ARCH
!CCORDINGLYTHEREWASNOIMPACTOFTHISCHANGEINTHEVALUEOFIMPAIRMENTAND00%DURINGTHEYEAR
'OODSAND3ERVICES4AX'34 HASBEENIMPLEMENTEDWEF*ULYWHEREINSOMEOFTHEPETROLEUMPRODUCTSARESTILLOUTSIDEITS
AMBIT!CCORDINGLY'34ISBEINGLEVIEDONSOMEPRODUCTSASAGAINST%XCISE$UTYAPPLICABLEHITHERTO3INCEEXCISEDUTYISINCLUDED
Directors’
INREVENUEAND'34ISNOTINCLUDEDINREVENUE4HUSTOENSURECOMPARABILITYONAPPLICABLEPRODUCTSSALESEXCLUDINGEXCISEDUTYIS
Report
`5,96,219.96 Crore and `#ROREFORTHEYEARENDED-ARCHAND-ARCHRESPECTIVELY
)NORDERTOPROVIDECLEANCOOKINGFUELTO"0,FAMILIES'OVERNMENTHASAPPROVEDh0RADHAN-ANTRI5JJWALA9OJANA0-59 vSCHEME
Management’s
"0, HOUSEHOLDSASPER3%##
2URAL DATABASE4HESCHEMEWASLAUNCHEDON-AY$URINGTHEYEARTHESCHEME
WASALSOEXTENDEDFORMALESWHERETHEREISNOWOMENINTHEFAMILY!SPERTHESCHEMETHEINITIALCOSTTOWARDSCONNECTIONCHARGES
2EFUNDABLEDEPOSIT WOULDBEBORNEBYTHE#ENTRAL'OVERNMENTFOREACHCARDHOLDER&EW3TATE'OVTSHASALSOEXTENDEDTHISSCHEME
TOOTHERBENEFECIARIES!SPERTHESCHEME/-#SWOULDPROVIDEANOPTIONFOR%-),OANSTOWARDSCOSTOFBURNERANDstRElLLTOTHE
0-59CONSUMERS4HELOANAMOUNTISTOBERECOVEREDFROMTHESUBSIDYAMOUNTPAYABLEBYTHEGOVERNMENTTOTHECUSTOMERSONEACH
Responsibility Report
RElLLSALE$URINGTHEYEARDISCOUNTINGOFTHELOANHASBEENDONEBASEDONASSUMPTIONOFRElLLSINAYEARANDAVERAGESUBSIDYOF
`PERCYLINDERASLOANRECOVERY
Business
4HEAMOUNTOFOUTSTANDINGASON-ARCHTOWARDS0-59CLAIMFROM#ENTRAL'OVERNMENTIS`1,495.63#RORE`
#ROREASON-ARCH ANDLOANFROM0-59CONSUMERSIS`3,111.32#RORE`#ROREASON-ARCH NETOF
RECOVERYTHROUGHSUBSIDY !GAINSTTHEABOVELOANAPROVISIONFORDOUBTFULAMOUNTINGTO`1,141.71 #RORE`#RORE
HASBEENCREATEDASON-ARCHAGAINSTTHEBENElCIARIESWHOHAVENOTTAKENANYRElLLDURINGPASTSIXMONTHS
Report on Corporate
0URSUANTTOTHE"OARDAPPROVALFORFORMATIONOFA*OINT6ENTURECOMPANYBETWEEN)NDIAN/IL#ORPORATION,TDAND#OAL)NDIA,TD
Governance
FORTRANSFEROFEXPLOSIVESBUSINESSTOTHESAIDVENTURECOMPANYONSLUMPSALEBASISATAVALUEOF`311.00CRORE.ET!SSETS7$6
OF`#RORE CONSENTOF.ITI!YOGWASINITIALLYRECEIVEDFORFORMATIONOFTHE*6BYLETTERDATED!PRIL(OWEVERTHE
FORMATIONOFTHE*6ISSTILLPENDINGINVIEWOFDELIBERATIONSAT.)4)!YOGINTHEMATTER!CCORDINGLYTHEEXPLOSIVEBUSINESSCONTINUES
TOBEINOPERATIONASON-ARCH
Financial financial
Statements
Standalone
statements
278 Indian Oil Corporation Limited 2nd Integrated Annual Report
0LACE.EW$ELHI
$ATE-AY
60th Annual Report 2018-19 279
About the
Report
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2019
ON PROVISION OF TOWNSHIP, EDUCATION, MEDICAL AND OTHER FACILITIES
`INCRORE
Chairman’s Desk
March-2019 -ARCH
From the
INCOME :
2ECOVERYOF(OUSE2ENT 11.26
2ECOVERYOF5TILITIES
0OWERAND7ATER 4.63
2ECOVERYOF4RANSPORT#HARGES 0.06
About IndianOil
/THER2ECOVERIES 10.03
%XCESSOF%XPENDITUREOVER)NCOME 658.95
TOTAL 684.93 621.49
EXPENDITURE :
%MPLOYEE"ENElT%XPENSES 182.69
#ONSUMABLE3TORESAND-EDICINES 74.70
Description of
2EPAIRSAND-AINTENANCE 140.44
Capitals
&INANCE#OST 21.55
$EPRECIATION!MORTIZATION 44.77
Board of
2ENT 0.28
3UBSIDIESFOR3OCIAL#ULTURAL!CTIVITIES 30.94
"US(IRE#HARGES -
#LUBAND2ECREATION -
/THERS 9.92
Directors’
Report
TOTAL 684.93 621.49
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (TOWNSHIP) FOR THE YEAR ENDED MARCH
31, 2019 `IN#RORE
PARTICULARS Gross Block Additions Transfers Disposals/ Gross Block Depreciation Deprereciation NET DEPRECIATED
as at April 1, during from Capital Deductions/ as at March, & & Amortization BLOCK
2018 the year work-in- Transfers/ 31, 2019 Amortization as at March,
progress 2ECLASSIlCATIONS During the 31, 2019 March 31, March 31,
Year 2019 2018
"5),$).'32/!$3ETC 820.18
0,!.4!.$%15)0-%.4 41.60
/&&)#%%15)0-%.43 10.84
&52.)452%&)8452%3 10.06
GRAND TOTAL 1,132.55 6.11 20.04 13.94 1,172.64 44.77 168.78 1,003.86 1,007.54
PREVIOUS YEAR 945.41 77.08 115.74 (5.68) 1,132.55 45.67 125.01 1,007.54
CONSOLIDATED
FINANCIAL STATEMENTS
2018-19
282 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
Key Audit Matters Auditors’ response to Key Audit Matters
Capital Work-in-Progress
Chairman’s Desk
4HE#OMPANYISINTHEPROCESSOFEXECUTINGVARIOUSPROJECTSLIKE 7EPERFORMEDANUNDERSTANDINGANDEVALUATIONOFTHESYSTEMOF
EXPANSIONOFRElNERIESINSTALLATIONOFNEWPLANTSDEPOTS,0' INTERNALCONTROLOVERTHECAPITALWORKINPROGRESSWITHREFERENCETO
BOTTLING PLANTS TERMINALS PIPELINES ETC 3INCE THESE PROJECTS IDENTIlCATIONANDTESTINGOFKEYCONTROLS
From the
TAKEASUBSTANTIALPERIODOFTIMETOGETREADYFORINTENDEDUSE
7E ASSESSED THE PROGRESS OF THE PROJECT AND THE INTENTION AND
ANDDUETOTHEIRMATERIALITYINTHECONTEXTOFTHEBALANCESHEET
ABILITYOFTHEMANAGEMENTTOCARRYFORWARDANDBRINGTHEASSETTO
OFTHE#OMPANYTHISISCONSIDEREDTOBEANAREAWHICHHADTHE
ITSSTATEOFINTENDEDUSE
SIGNIlCANTEFFECTONTHEOVERALLAUDITSTRATEGYANDALLOCATIONOF
About IndianOil
resources in planning and completing our audit
Provision for Direct Taxes
4HE#OMPANYHASUNCERTAINDIRECTTAXPOSITIONSINCLUDINGMATTERS /UR AUDIT PROCESS INVOLVED ASSESSMENT OF THE MANAGEMENTS
UNDERDISPUTEWHICHINVOLVESSIGNIlCANTJUDGMENTRELATINGTOTHE UNDERLYING ASSUMPTIONS IN ESTIMATING THE TAX PROVISION AS
POSSIBLEOUTCOMEOFTHESEDISPUTESINESTIMATIONOFTHEPROVISION CONlRMED BY THE #OMPANYS TAX CONSULTANTS AND THE POSSIBLE
FORINCOMETAX"ECAUSEOFTHEJUDGEMENTREQUIREDTHEAREAISA OUTCOMEOFTHEDISPUTESTAKINGINTOACCOUNTTHELEGALPRECEDENCE
Description of
KEYAUDITMATTERFOROURAUDIT JURISPRUDENCE AND OTHER RULINGS IN EVALUATING MANAGEMENTS
POSITIONONTHESEUNCERTAINDIRECTTAXPOSITIONS7EHAVEOBSERVED
Capitals
THATTHEPROVISIONFORTAXESTIMATEDASABOVEINCLUDINGTHEDEFERRED
TAX HAS NOT RESULTED IN MATERIAL DEVIATION FROM THE APPLICABLE
RATE OF TAX AFTER CONSIDERING THE EXEMPTIONS DEDUCTIONS AND
Board of
4HE #OMPANY IS INVOLVED IN VARIOUS TAXES AND OTHER DISPUTES /URAUDITPROCEDUREINRESPONSETOTHISKEY!UDIT-ATTERINCLUDED
FOR WHICH lNAL OUTCOMES CANNOT BE EASILY PREDICTED AND AMONGOTHERS
WHICH COULD POTENTIALLY RESULT IN SIGNIlCANT LIABILITIES 4HE
• !SSESSMENTOFTHEPROCESSANDRELEVANTCONTROLSIMPLEMENTED
ASSESSMENTOFTHERISKSASSOCIATEDWITHTHELITIGATIONSISBASED
TOIDENTIFYLEGALANDTAXLITIGATIONSANDPENDINGADMINISTRATIVE
ONCOMPLEXASSUMPTIONSWHICH REQUIRETHEUSEOFJUDGEMENT
PROCEEDINGS
AND SUCH JUDGEMENT RELATES PRIMARILY TO THE ASSESSMENT OF
Directors’
THEUNCERTAINTIESCONNECTEDTOTHEPREDICTIONOFTHEOUTCOME • !SSESSMENTOFASSUMPTIONSUSEDINTHEEVALUATIONOFPOTENTIAL
Report
OF THE PROCEEDINGS AND TO THE ADEQUACY OF THE DISCLOSURES IN LEGALANDTAXRISKSPERFORMEDBYTHELEGALANDTAXDEPARTMENT
THE lNANCIAL STATEMENTS "ECAUSE OF THE JUDGEMENT REQUIRED OFTHE#OMPANYCONSIDERINGTHELEGALPRECEDENCEANDOTHER
Management’s
• )NQUIRY WITH THE LEGAL AND TAX DEPARTMENTS REGARDING THE
STATUSOFTHEMOSTSIGNIlCANTDISPUTESANDINSPECTIONOF
THEKEYRELEVANTDOCUMENTATION
• !NALYSISOFOPINIONRECEIVEDFROMTHEEXPERTSWHEREAVAILABLE
Responsibility Report
• 2EVIEWOFTHEADEQUACYOFTHEDISCLOSURESINTHENOTESTOTHE
lNANCIALSTATEMENTS
Goods and Services Tax (GST)
Business
4HE COUNTRY HAS ADOPTED 'OODS AND 3ERVICES 4AX WITH EFFECT /URAUDITPROCESSINVOLVEDASSESSINGTHEMANAGEMENTSJUDGEMENT
FROM*ULY4HE'OODSAND3ERVICE4AXISAPPLICABLEONLY ONTHEINTERPRETATIONSINVOLVEDTAKINGINTOACCOUNTTHEADVICESAND
Report on Corporate
IN CASEOF CERTAINPRODUCTSANDSERVICESOFTHE#OMPANYWHILE OPINIONSRECEIVEDFROMINDIRECTTAXEXPERTS
MAJORPRODUCTSARESTILLCOVEREDUNDERTHEOLDREGIMEVIZEXCISE
DUTYCUSTOMSDUTYANDVALUEADDEDTAX3INCETHE#OMPANYIS
Governance
COVEREDUNDERBOTHTHEREGIMESTHEMANAGEMENTISREQUIREDTO
APPLY JUDGMENT IN THE INTERPRETATION WITH RESPECT TO INPUT TAX
CREDITAVAILABLEANDTAXABILITYOFTHEPRODUCTSANDSERVICES3INCE
financial
SIGNIlCANTJUDGMENTOFTHEMANAGEMENTISREQUIREDTHEAREAIS
AKEYAUDITMATTERFOROURAUDIT
Consolidated
Statements
statements
Financial
284 Indian Oil Corporation Limited 2nd Integrated Annual Report
Information Other than the Consolidated Financial Statements and Auditors’ Report Thereon
4HE(OLDING#OMPANYS"OARDOF$IRECTORSISRESPONSIBLEFORTHEPREPARATIONOFTHEOTHERINFORMATION4HEOTHERINFORMATIONCOMPRISES
The Holding Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises
THEINFORMATIONINCLUDEDINTHE&INANCIAL0ERFORMANCEHIGHLIGHTS"OARDS2EPORTINCLUDING!NNEXURESTO"OARDS2EPORT-ANAGEMENT
the information included in the Financial Performance highlights, Board’s Report including Annexures to Board’s Report, Management
$ISCUSSIONS
Discussions AND
and !NALYSIS
Analysis, "USINESS
Business 2ESPONSIBILITY
Responsibility 2EPORT
Report, 2EPORT
Report ON
on #ORPORATE
Corporate 'OVERNANCE
Governance, 3HAREHOLDERS
Shareholders )NFORMATION
Information AND
and OTHER
other
INFORMATIONIN)NTEGRATED!NNUAL2EPORTBUTDOESNOTINCLUDETHECONSOLIDATEDlNANCIALSTATEMENTSANDOURAUDITORSREPORTTHEREON
information in Integrated Annual Report but does not include the consolidated financial statements and our auditors’ report thereon.
4HE
The INFORMATION
information TO
to THE
the EXTENT
extent AVAILABLE
available, RELATING
relating TO
to THE
the CONSOLIDATED
consolidated lNANCIAL
financial STATEMENTS
statements WHICH
which WILL
will BE
be INCLUDED
included IN
in THE
the -ANAGEMENT
Management
DISCUSSIONAND!NALYSISAND&INANCIAL0ERFORMANCE(IGHLIGHTSHAVEBEENMADEAVAILABLETOUSPRIORTOTHEDATEOFTHISAUDITORSREPORT
discussion and Analysis and Financial Performance Highlights have been made available to us prior to the date of this auditors’ report
ANDWEHAVENOTOBSERVEDANYMISSTATEMENT
and we have not observed any misstatement.
4HEOTHERINFORMATIONTOTHEEXTENTNOTMADEAVAILABLETOUSASOFTHEDATEOFSIGNINGTHISREPORTSEXPECTEDTOBEMADEAVAILABLETOUS
The other information, to the extent not made available to us as of the date of signing this reports expected to be made available to us
AFTERTHEDATEOFTHISAUDITORSREPORT
after the date of this auditors’ report.
/UROPINIONONTHECONSOLIDATEDlNANCIALSTATEMENTSDOESNOTCOVERTHEOTHERINFORMATIONANDWEWILLNOTEXPRESSANYFORMOFASSURANCE
Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance
CONCLUSIONTHEREON
conclusion thereon.
)NCONNECTIONWITHOURAUDITOFTHECONSOLIDATEDlNANCIALSTATEMENTSOURRESPONSIBILITYISTOREADTHEOTHERINFORMATIONANDIDENTIlED
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and identified
ABOVEWHENITBECOMESAVAILABLEANDINDOINGSOCONSIDERWHETHERTHEOTHERINFORMATIONISMATERIALLYINCONSISTENTWITHTHECONSOLIDATED
above when it becomes available, and in doing so, consider whether the other information is materially inconsistent with the consolidated
lNANCIALSTATEMENTSOROURKNOWLEDGEOBTAINEDINTHEAUDITOROTHERWISEAPPEARSTOBEMATERIALLYMISSTATED
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
)FBASEDONTHEWORKWEHAVEPERFORMEDONTHEOTHERINFORMATIONTHATWEOBTAINEDPRIORTOTHEDATEOFAUDITORSREPORTWECONCLUDETHAT
If, based on the work we have performed on the other information that we obtained prior to the date of auditors’ report, we conclude that
THEREISAMATERIALMISSTATEMENTOFTHISINFORMATIONWEAREREQUIREDTOREPORTTHATFACT7EHAVENOTHINGTOREPORTINTHISREGARD
there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
7HENWEREADTHEOTHERINFORMATIONIFWECONCLUDETHATTHEREISMATERIALMISSTATEMENTTHEREINWEAREREQUIREDTOCOMMUNICATETHE
When we read the other information, if we conclude that there is material misstatement therein, we are required to communicate the
MATTERTOTHOSECHARGEDWITHGOVERNANCE
matter to those charged with governance.
60th Annual Report 2018-19 285
About the
Report
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
4HE(OLDING#OMPANYS"OARDOF$IRECTORSISRESPONSIBLEFORTHEPREPARATIONANDPRESENTATIONOFTHESECONSOLIDATEDlNANCIALSTATEMENTS
IN TERM OF THE REQUIREMENTS OF THE !CT THAT GIVE A TRUE AND FAIR VIEW OF THE CONSOLIDATED lNANCIAL POSITION CONSOLIDATED lNANCIAL
Chairman’s Desk
PERFORMANCETOTALCOMPREHENSIVEINCOMECONSOLIDATED3TATEMENTOF#HANGESIN%QUITYANDCONSOLIDATED3TATEMENTOF#ASH&LOWSOF
THE'ROUPITS*OINT6ENTURESAND!SSOCIATESINACCORDANCEWITHTHEACCOUNTINGPRINCIPLESGENERALLYACCEPTEDIN)NDIAINCLUDINGTHE
From the
!CCOUNTING3TANDARDSSPECIlEDUNDERSECTIONOFTHEACT4HERESPECTIVE"OARDOF$IRECTORSOFTHECOMPANIESINCLUDEDINTHE'ROUP
OFITS*OINT6ENTURESAND!SSOCIATESARERESPONSIBLEFORMAINTENANCEOFADEQUATEACCOUNTINGRECORDSINACCORDANCEWITHTHEPROVISIONS
OFTHE!CTFORSAFEGUARDINGTHEASSETSOFTHE'ROUPFORPREVENTINGANDDETECTINGFRAUDSANDOTHERIRREGULARITIESSELECTIONANDAPPLICATION
OFAPPROPRIATEACCOUNTINGPOLICIESMAKINGJUDGMENTSANDESTIMATESTHATAREREASONABLEANDPRUDENTANDTHEDESIGNIMPLEMENTATION
ANDMAINTENANCEOFADEQUATEINTERNALlNANCIALCONTROLSTHATWEREOPERATINGEFFECTIVELYFORENSURINGACCURACYANDCOMPLETENESSOFTHE
About IndianOil
ACCOUNTINGRECORDSRELEVANTTOTHEPREPARATIONANDPRESENTATIONOFTHElNANCIALSTATEMENTSTHATGIVEATRUEANDFAIRVIEWANDAREFREEFROM
MATERIALMISSTATEMENTWHETHERDUETOFRAUDORERRORWHICHHAVEBEENUSEDFORTHEPURPOSEOFPREPARATIONOFTHECONSOLIDATEDlNANCIAL
STATEMENTSBYTHE$IRECTORSOFTHE(OLDING#OMPANYASAFORESAID
)NPREPARINGTHECONSOLIDATEDlNANCIALSTATEMENTSTHERESPECTIVE"OARDOF$IRECTORSOFTHECOMPANIESINCLUDEDINTHE'ROUPITS*OINT
6ENTURESAND!SSOCIATESARERESPONSIBLEFORASSESSINGTHEABILITYOFTHE'ROUPITS*OINT6ENTURESAND!SSOCIATESTOCONTINUEASAGOING
CONCERNDISCLOSINGASAPPLICABLEMATTERSRELATEDTOGOINGCONCERNANDUSINGTHEGOINGCONCERNBASISOFACCOUNTINGUNLESSMANAGEMENT
Description of
EITHERINTENDSTOLIQUIDATETHE'ROUPORTOCEASEOPERATIONSORHASNOREALISTICALTERNATIVEBUTTODOSO
Capitals
4HE RESPECTIVE "OARD OF $IRECTORS OF THE COMPANIES INCLUDED IN THE 'ROUP ITS *OINT 6ENTURES AND !SSOCIATES ARE RESPONSIBLE FOR
OVERSEEINGTHElNANCIALREPORTINGPROCESSOFTHE'ROUPITS*OINT6ENTURESAND!SSOCIATES
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Board of
LEVELOFASSURANCEBUTISNOTAGUARANTEETHATANAUDITCONDUCTEDINACCORDANCEWITH3!SWILLALWAYSDETECTAMATERIALMISSTATEMENT
WHENITEXISTS-ISSTATEMENTSCANARISEFROMFRAUDORERRORANDARECONSIDEREDMATERIALIFINDIVIDUALLYORINTHEAGGREGATETHEYCOULD
REASONABLYBEEXPECTEDTOINmUENCETHEECONOMICDECISIONSOFUSERSTAKENONTHEBASISOFTHESECONSOLIDATEDlNANCIALSTATEMENTS
!SPARTOFANAUDITINACCORDANCEWITH3!SWEEXERCISEPROFESSIONALJUDGMENTANDMAINTAINPROFESSIONALSKEPTICISMTHROUGHOUTTHEAUDIT
7EALSO
Directors’
• )DENTIFYANDASSESSTHERISKSOFMATERIALMISSTATEMENTOFTHECONSOLIDATEDlNANCIALSTATEMENTSWHETHERDUETOFRAUDORERRORDESIGN
Report
ANDPERFORMAUDITPROCEDURESRESPONSIVETOTHOSERISKSANDOBTAINAUDITEVIDENCETHATISSUFlCIENTANDAPPROPRIATETOPROVIDEABASIS
FOROUROPINION4HERISKOFNOTDETECTINGAMATERIALMISSTATEMENTRESULTINGFROMFRAUDISHIGHERTHANFORONERESULTINGFROMERRORAS
Management’s
• /BTAINANUNDERSTANDINGOFINTERNALlNANCIALCONTROLSRELEVANTTOTHEAUDITINORDERTODESIGNAUDITPROCEDURESTHATAREAPPROPRIATEIN
THECIRCUMSTANCES5NDERSECTION I OFTHE!CTWEAREALSORESPONSIBLEFOREXPRESSINGOUROPINIONONWHETHERTHE'ROUPITS
*OINT6ENTURESAND!SSOCIATESWHICHARECOMPANIESINCORPORATEDIN)NDIAHASADEQUATEINTERNALlNANCIALCONTROLSSYSTEMINPLACE
ANDTHEOPERATINGEFFECTIVENESSOFSUCHCONTROLS
• %VALUATETHEAPPROPRIATENESSOFACCOUNTINGPOLICIESUSEDANDTHEREASONABLENESSOFACCOUNTINGESTIMATESANDRELATEDDISCLOSURES
Responsibility Report
MADEBYMANAGEMENT
• #ONCLUDEONTHEAPPROPRIATENESSOFMANAGEMENTSUSEOFTHEGOINGCONCERNBASISOFACCOUNTINGANDBASEDONTHEAUDITEVIDENCE
Business
OBTAINED WHETHER A MATERIAL UNCERTAINTY EXISTS RELATED TO EVENTS OR CONDITIONS THAT MAY CAST SIGNIlCANT DOUBT ON THE ABILITY OF
THE'ROUPITS*OINT6ENTURESAND!SSOCIATESTOCONTINUEASAGOINGCONCERN)FWECONCLUDETHATAMATERIALUNCERTAINTYEXISTSWE
AREREQUIREDTODRAWATTENTIONINOURAUDITORSREPORTTOTHERELATEDDISCLOSURESINTHECONSOLIDATEDlNANCIALSTATEMENTSORIFSUCH
DISCLOSURESAREINADEQUATETOMODIFYOUROPINION/URCONCLUSIONSAREBASEDONTHEAUDITEVIDENCEOBTAINEDUPTOTHEDATEOFOUR
Report on Corporate
• /BTAIN SUFlCIENT APPROPRIATE AUDIT EVIDENCE REGARDING THE lNANCIAL INFORMATION OF THE ENTITIES OR BUSINESS ACTIVITIES WITHIN THE
'ROUPITS*OINT6ENTURESAND!SSOCIATESTOEXPRESSANOPINIONONTHECONSOLIDATEDlNANCIALSTATEMENTS7EARERESPONSIBLEFORTHE
Consolidated
Statements
statements
DIRECTIONSUPERVISIONANDPERFORMANCEOFTHEAUDITOFTHElNANCIALSTATEMENTSOFSUCHENTITIESINCLUDEDINTHECONSOLIDATEDlNANCIAL
Financial
STATEMENTSOFWHICHWEARETHEINDEPENDENTAUDITORS&ORTHEOTHERENTITIESINCLUDEDINTHECONSOLIDATEDlNANCIALSTATEMENTSWHICH
286 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
E /NTHEBASISOFTHEREPORTSOFTHESTATUTORYAUDITORSOFSUBSIDIARIESANDJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIANONE
OFTHEDIRECTORSOFJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIAISDISQUALIlEDASON-ARCHFROMBEINGAPPOINTED
ASADIRECTORINTERMSOF3ECTION OFTHE!CT7EAREINFORMEDTHATTHEPROVISIONSOF3ECTION OFTHE!CTARENOT
APPLICABLETOTHE(OLDING#OMPANYANDITSSUBSIDIARYCOMPANIESINCORPORATEDIN)NDIABEING'OVERNMENTCOMPANIESINTERMS
Chairman’s Desk
OFNOTIlCATIONNO'32% DATED*UNEISSUEDBY-INISTRYOF#ORPORATE!FFAIRS
From the
F 7ITHRESPECTTOTHEADEQUACYOFTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGOFTHE(OLDING#OMPANYITSSUBSIDIARY
COMPANIESJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIAANDTHEOPERATINGEFFECTIVENESSOFSUCHCONTROLSREFERTOOUR
SEPARATEREPORTINh!NNEXUREv
G 7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITHTHEREQUIREMENTSOFSECTION
About IndianOil
OFTHE!CTASAMENDED
7EAREINFORMEDTHATTHEPROVISIONSOFSECTIONREADWITH3CHEDULE6OFTHE!CTRELATINGTOMANAGERIALREMUNERATIONARENOT
APPLICABLETOTHE(OLDING#OMPANYANDITSSUBSIDIARIESINCORPORATEDIN)NDIABEING'OVERNMENT#OMPANIESINTERMSOF-INISTRY
OF#ORPORATE!FFAIRS.OTIlCATIONNO'32% DATED*UNE/NTHEBASISOFTHEREPORTSOFTHESTATUTORYAUDITORS
OFTHE*OINT6ENTURESAND!SSOCIATESINCORPORATEDIN)NDIATHEREMUNERATIONPAIDBYTHE*OINT6ENTURESAND!SSOCIATESTOITS
DIRECTORSDURINGTHECURRENTYEARISINACCORDANCEWITHTHE3ECTIONOFTHE!CTANDTHEREMUNERATIONPAIDTOANYDIRECTORIS
Description of
NOTINEXCESSOFTHELIMITLAIDDOWNUNDER3ECTIONOFTHE!CT
Capitals
H 7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITH2ULEOFTHE#OMPANIES!UDIT
AND!UDITORS 2ULESINOUROPINIONANDTOTHEBESTOFOURINFORMATIONANDACCORDINGTOTHEEXPLANATIONSGIVENTOUSAND
BASEDONTHECONSIDERATIONOFTHEREPORTOFTHEOTHERAUDITORSONTHElNANCIALSTATEMENTSOFTHESUBSIDIARYCOMPANIESJOINT
VENTURESANDASSOCIATESASNOTEDINOTHERMATTERPARAGRAPH
Board of
II 0ROVISIONHASBEENMADEINTHECONSOLIDATEDlNANCIALSTATEMENTSASREQUIREDUNDERTHEAPPLICABLELAWOR)NDIAN!CCOUNTING
3TANDARDSFORMATERIALFORESEEABLELOSSESIFANYONLONGTERMCONTRACTSINCLUDINGDERIVATIVECONTRACTS2EFER.OTETO
THECONSOLIDATEDlNANCIALSTATEMENTS
III 4HEREHASBEENNODELAYINTRANSFERRINGAMOUNTSREQUIREDTOBETRANSFERREDTOTHE)NVESTOR%DUCATIONAND0ROTECTION&UND
BYTHE(OLDING#OMPANYITSSUBSIDIARYCOMPANIESJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIADURINGTHEYEAR
Directors’
ENDED-ARCH
Report
Discussion & Analysis
Management’s
Responsibility Report
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
Business
3D
3D
3D
3D
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI) Report on Corporate
0ARTNER 0ARTNER 0ARTNER 0ARTNER
-.O -.O -.O -.O
Governance
0LACEOF3IGNATURE
.EW$ELHI
$ATED-AY
Consolidated financial
Statements
statements
Financial
288 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
MADE ONLY IN ACCORDANCE WITH AUTHORISATIONS OF MANAGEMENT AND DIRECTORS OF THE COMPANY AND PROVIDE REASONABLE ASSURANCE
REGARDING PREVENTION OR TIMELY DETECTION OF UNAUTHORISED ACQUISITION USE OR DISPOSITION OF THE COMPANYS ASSETS THAT COULD HAVE A
MATERIALEFFECTONTHElNANCIALSTATEMENTS
Chairman’s Desk
Inherent Limitations of Internal Financial Controls Over Financial Reporting
"ECAUSEOFTHEINHERENTLIMITATIONSOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGINCLUDINGTHEPOSSIBILITYOFCOLLUSIONORIMPROPER
From the
MANAGEMENTOVERRIDEOFCONTROLSMATERIALMISSTATEMENTSDUETOERRORORFRAUDMAYOCCURANDNOTBEDETECTED!LSOPROJECTIONSOFANY
EVALUATIONOFTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGTOFUTUREPERIODSARESUBJECTTOTHERISKTHATTHEINTERNALlNANCIAL
CONTROLOVERlNANCIALREPORTINGMAYBECOMEINADEQUATEBECAUSEOFCHANGESINCONDITIONSORTHATTHEDEGREEOFCOMPLIANCEWITHTHE
POLICIESORPROCEDURESMAYDETERIORATE
About IndianOil
Opinion
)NOUROPINIONTHE(OLDING#OMPANYITSSUBSIDIARYCOMPANIESJOINTVENTURESANDASSOCIATESWHICHAREINCORPORATEDIN)NDIAHAVEIN
ALLMATERIALRESPECTSANADEQUATEINTERNALlNANCIALCONTROLSSYSTEMOVERlNANCIALREPORTINGANDSUCHINTERNALlNANCIALCONTROLSOVER
lNANCIALREPORTINGWEREOPERATINGEFFECTIVELYASAT-ARCHEXCEPTINTHECASEOFONEJOINTVENTUREWHERETHEAUDITORHASQUALIlED
HISOPINIONONCERTAINMATTERSWHICHWEAREINFORMEDWILLNOTHAVEMATERIALIMPACTONTHEADEQUACYANDOPERATINGEFFECTIVENESSOF
INTERNALlNANCIALCONTROLOVERlNANCIALREPORTINGOFTHE'ROUPBASEDONTHEINTERNALCONTROLOVERlNANCIALREPORTINGCRITERIAESTABLISHED
Description of
BYTHE'ROUPCONSIDERINGTHEESSENTIALCOMPONENTSOFINTERNALCONTROLSTATEDINTHE'UIDANCE.OTEON!UDITOF)NTERNAL&INANCIAL#ONTROLS
Capitals
/VER&INANCIAL2EPORTINGISSUEDBYTHE)NSTITUTEOF#HARTERED!CCOUNTANTSOF)NDIA
Other Matters
/URAFORESAIDREPORTSUNDERSECTION OFTHE!CTONTHEADEQUACYANDOPERATINGEFFECTIVENESSOFTHEINTERNALlNANCIALCONTROLOVER
Board of
Directors’
Report
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Management’s
3D
3D
3D
3D
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER
-.O -.O -.O -.O
Responsibility Report
0LACEOF3IGNATURE
.EW$ELHI
$ATED-AY
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
290 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
CONSOLIDATED FINANCIAL STATEMENTS
BALANCE SHEET AS AT MARCH 31, 2019
`IN#RORE
Chairman’s Desk
Particulars Note No. March 31, 2019 March 31, 2018
LIABILITIES
From the
Non-current Liabilities
A &INANCIAL,IABILITIES
I "ORROWINGS 39,152.45
II /THER&INANCIAL,IABILITIES 616.03
About IndianOil
B 0ROVISIONS 18 2,211.99
C $EFERRED4AX,IABILITIES.ET 16,509.71
D /THERNON
CURRENT,IABILITIES 1,599.45
60,089.63 39,745.69
Current Liabilities
Description of
A &INANCIAL,IABILITIES
I "ORROWINGS 21 53,559.29
Capitals
II 4RADE0AYABLES 22
!4OTALOUTSTANDINGDUESOF-ICROAND3MALL%NTERPRISES 236.82
Board of
B /THER#URRENT,IABILITIES 12,475.38
C 0ROVISIONS 18 10,174.05
1,60,718.88 1,39,904.97
TOTAL EQUITY AND LIABILITIES 3,35,155.11 2,95,675.70
Directors’
3IGNIlCANT!CCOUNTING0OLICIES%STIMATES*UDGEMENTS !"
Report
!CCOMPANYING.OTESTO&INANCIAL3TATEMENTS
Responsibility Report
$).
$).
!#3
Business
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
Report on Corporate
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER
-.O -.O -.O -.O
financial
0LACE.EW$ELHI
$ATE-AY
Consolidated
Statements
statements
Financial
292 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
CONSOLIDATED FINANCIAL STATEMENTS
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Chairman’s Desk
Particulars Note No. 2018-19 2017-18
X. Other Comprehensive Income:
From the
!I )TEMSTHATWILLNOTBERECLASSIlEDTOPROlTORLOSS (2,044.11)
!II )NCOME4AXRELATINGTOITEMSTHATWILLNOTBERECLASSIlEDTOPROlT (462.22)
or loss
About IndianOil
"I )TEMSTHATWILLBERECLASSIlEDTOPROlTORLOSS (120.96)
"II )NCOME4AXRELATINGTOITEMSTHATWILLBERECLASSIlEDTOPROlTORLOSS (34.11)
8)4OTAL #OMPREHENSIVE )NCOME FOR THE 9EAR )88 #OMPRISING 0ROlT 14,612.45 23,564.51
(Loss) and Other Comprehensive Income for the Year)
4OTAL #OMPREHENSIVE )NCOME FOR THE 9EAR #OMPRISING 0ROlT,OSS AND
Other Comprehensive Income for the Year) attributable to:
Description of
%QUITYHOLDERSOFTHE0ARENT 14,722.26
Capitals
.ON
#ONTROLLING)NTEREST (109.81)
XIII. Earnings per Equity Share (`): 32
Board of
&ACE6ALUE0ER%QUITY3HARE` 10
3IGNIlCANT!CCOUNTING0OLICIES%STIMATES*UDGEMENTS !"
!CCOMPANYING.OTESTO&INANCIAL3TATEMENTS
Directors’
Report
Discussion & Analysis
For and on Behalf of Board of Directors
Management’s
3D
3D
3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary
$).
$).
!#3
Responsibility Report
As per our attached Report of even date
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Business
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%
0LACE.EW$ELHI
$ATE-AY
Consolidated financial
Statements
statements
Financial
294 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
CONSOLIDATED FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Chairman’s Desk
Particulars 2018-19 2017-18
C Net Cash Flow From Financing Activities:
From the
0ROCEEDSFROM,ONG
4ERM"ORROWINGS)NCLUDINGlNANCELEASE 20,354.68
2EPAYMENTSOF,ONG
4ERM"ORROWINGS (3,856.61)
)NCLUDINGlNANCELEASE
0ROCEEDSFROM2EPAYMENTSOF 3HORT
4ERM"ORROWINGS 14,478.31
About IndianOil
Interest paid (4,418.10)
$IVIDEND$IVIDEND4AXPAID (11,679.03)
5TILISEDFOR)SSUEOF"ONUS3HARES"UY"ACK (4,442.80)
INCLUDINGEXPENSES
Net Cash Generated/(Used) from Financing Activities: 10,436.45 (12,007.36)
Description of
D Net Change in Cash & Cash Equivalents 614.55 (10.77)
!"#
Capitals
E1 Cash & Cash Equivalents as at end of the year 933.28
,ESS
Board of
.ET#ASH&LOW&ROM&INANCING!CTIVITIESINCLUDESFOLLOWINGNON
CASHCHANGES
Particulars 2018-19 2017-18
'AIN ,OSSDUETOCHANGESINEXCHANGERATE (384.78)
)NCREASEIN,EASELIABILITIESDUETONEWLEASES 55.11
)NTEREST!CCRUEDAND$UENOT$UEONBORROWINGS 55.49
Directors’
TOTAL (274.18)
Report
3TATEMENTOF#ASH&LOWSISPREPAREDUSING)NDIRECT-ETHODASPER)NDIAN!CCOUNTING3TANDARD
3TATEMENTOF#ASH&LOWS
&IGURESFORPREVIOUSYEARHAVEBEENREGROUPEDWHEREVERNECESSARYFORUNIFORMITYINPRESENTATION
Responsibility Report
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary
$).
$).
!#3
Business
As per our attached Report of even date
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants Report on Corporate
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O% Governance
0LACE.EW$ELHI
Consolidated
Statements
statements
$ATE-AY
Financial
296 Indian Oil Corporation Limited 2nd Integrated Annual Report
B Other Equity
About the
Report
Chairman’s Desk
From the
About IndianOil
`IN#RORE
Reserves and Surplus Items of Other Comprehensive Income Attributable Non - TOTAL
Description of
to Equity Controlling
Corporate Social Cash Flow Foreign Currency Fair value Fair value Translation
Capitals
holders of the Interest
Responsibility Hedge Monetary Item of Equity of Debt Reserve on Parent
Reserve Reserve Translation Difference Instruments Instruments Consolidation
Account
(FCMITDA)
Board of
- - - 252.86 (169.45) 691.86 23,129.24 435.27 23,564.51
Directors’
Report
Management’s
Responsibility Report
Business
Report on Corporate
0.78 - (45.77) 18,678.23 (149.41) 276.56 1,04,395.13 2,151.22 1,06,546.35
Governance
Consolidated financial
Statements
statements
Financial
298 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
`IN#RORE
Chairman’s Desk
Reserves and Surplus Items of Other Comprehensive Income Attributable Non - TOTAL
to Equity Controlling
Corporate Social Cash Flow Foreign Currency Fair value Fair value Translation holders of the Interest
From the
Responsibility Hedge Monetary Item of Equity of Debt Reserve on Parent
Reserve Reserve Translation Difference Instruments Instruments Consolidation
Account
(FCMITDA)
0.78 - (45.77) 18,678.23 (149.41) 276.56 1,04,395.13 2,151.22 1,06,546.35
About IndianOil
- 15.68 - (2,461.05) 105.46 (278.18) 14,722.26 (109.81) 14,612.45
Description of
Capitals
Board of
Directors’
Report
0.82 22.04 (35.78) 16,217.18 (43.95) (1.62) 1,03,288.20 1,877.36 1,05,165.56
Responsibility Report
$).
$).
!#3
Business
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O% Report on Corporate
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER
-.O -.O -.O -.O
financial
0LACE.EW$ELHI
$ATE-AY
Consolidated
Statements
statements
Financial
300 Indian Oil Corporation Limited 2nd Integrated Annual Report
#ERTAIN&INANCIAL!SSETSANDLIABILITIESMEASUREDAT 4HE lNANCIAL STATEMENTS OF ALL ENTITIES USED FOR THE
FAIR VALUE REFER SERIAL NO OF ACCOUNTING POLICY PURPOSEOFCONSOLIDATIONAREDRAWNUPTOSAMEREPORTING
REGARDINGlNANCIALINSTRUMENTS AND DATEASTHATOFTHEPARENTCOMPANYIEYEARENDEDON
-ARCH&OLLOWINGCONSOLIDATIONPROCEDUREISFOLLOWED
#ONTINGENTCONSIDERATION
A #OMBINE LIKE ITEMS OF ASSETS LIABILITIES EQUITY
4HE CONSOLIDATED lNANCIAL STATEMENTS ARE PRESENTED INCOMEEXPENSESANDCASHmOWSOFTHEPARENTWITH
IN )NDIAN 2UPEES ` WHICH IS THE PRESENTATION AND THOSEOFITSSUBSIDIARIES&ORTHISPURPOSEINCOME
FUNCTIONAL CURRENCY OF THE 'ROUP AND ALL VALUES ARE AND EXPENSES OF THE SUBSIDIARY ARE BASED ON THE
ROUNDED TO THE NEAREST #RORES UP TO TWO DECIMALS AMOUNTS OF THE ASSETS AND LIABILITIES RECOGNISED
EXCEPTWHENOTHERWISEINDICATED IN THE CONSOLIDATED lNANCIAL STATEMENTS AT THE
ACQUISITIONDATE
60th Annual Report 2018-19 301
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Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
B /FFSET ELIMINATE THE CARRYING AMOUNT OF THE Investment in Associates and Joint Ventures
PARENTS INVESTMENT IN EACH SUBSIDIARY AND THE
From the
!N ASSOCIATE IS AN ENTITY OVER WHICH THE 'ROUP HAS
PARENTS PORTION OF EQUITY OF EACH SUBSIDIARY
SIGNIlCANTINmUENCE3IGNIlCANTINmUENCEISTHEPOWER
"USINESS COMBINATIONS POLICY EXPLAINS HOW TO
TO PARTICIPATE IN THE lNANCIAL AND OPERATING POLICY
ACCOUNTFORANYRELATEDGOODWILL
DECISIONS OF THE INVESTEE BUT IS NOT CONTROL OR JOINT
C %LIMINATE IN FULL INTRAGROUP ASSETS AND LIABILITIES CONTROLOVERTHOSEPOLICIES)NVESTMENTSINASSOCIATESARE
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EQUITYINCOMEEXPENSESANDCASHmOWSRELATINGTO ACCOUNTEDFORUSINGTHEEQUITYMETHODOFACCOUNTING
TRANSACTIONS BETWEEN ENTITIES OF THE GROUP PROlTS
! JOINT VENTURE IS A TYPE OF JOINT ARRANGEMENT WHEREBY
ORLOSSESRESULTINGFROMINTRAGROUPTRANSACTIONSTHAT
THE PARTIES THAT HAVE JOINT CONTROL OF THE ARRANGEMENT
ARERECOGNISEDINASSETSSUCHASINVENTORYANDlXED
HAVERIGHTSTOTHENETASSETSOFTHEJOINTVENTURE*OINT
ASSETSAREELIMINATEDINFULL )NTRAGROUPLOSSESMAY
CONTROLISTHECONTRACTUALLYAGREEDSHARINGOFCONTROLOF
indicate an impairment that requires recognition
ANARRANGEMENTWHICHEXISTSONLYWHENDECISIONSABOUT
IN THE CONSOLIDATED lNANCIAL STATEMENTS )ND !3
Description of
THERELEVANTACTIVITIESREQUIREUNANIMOUSCONSENTOFTHE
)NCOME 4AXES APPLIES TO TEMPORARY DIFFERENCES
PARTIESSHARINGCONTROL
Capitals
THATARISEFROMTHEELIMINATIONOFPROlTSANDLOSSES
RESULTINGFROMINTRAGROUPTRANSACTIONS 4HE CONSIDERATIONS MADE IN DETERMINING WHETHER
SIGNIlCANTINmUENCEORJOINTCONTROLARESIMILARTOTHOSE
0ROlTORLOSSANDEACHCOMPONENTOFOTHERCOMPREHENSIVE
Board of
ADElCITBALANCE7HENNECESSARYADJUSTMENTSAREMADE 5NDERTHEEQUITYMETHODTHEINVESTMENTINANASSOCIATE
TOTHElNANCIALSTATEMENTSOFSUBSIDIARIESTOBRINGTHEIR OR A JOINT VENTURE IS INITIALLY RECOGNISED AT COST 4HE
ACCOUNTINGPOLICIESINTOLINEWITHTHE'ROUPSACCOUNTING CARRYING AMOUNT OF THE INVESTMENT IS ADJUSTED TO
POLICIES !LL INTRA
GROUP ASSETS AND LIABILITIES EQUITY RECOGNISE CHANGES IN THE 'ROUPS SHARE OF NET ASSETS
INCOMEEXPENSESANDCASHmOWSRELATINGTOTRANSACTIONS OF THE ASSOCIATE OR JOINT VENTURE SINCE THE ACQUISITION
BETWEENMEMBERSOFTHE'ROUPAREELIMINATEDINFULLON DATE'OODWILLRELATINGTOTHEASSOCIATEORJOINTVENTURE
Directors’
CONSOLIDATION
Report
ISINCLUDEDINTHECARRYINGAMOUNTOFTHEINVESTMENTAND
ISNOTTESTEDFORIMPAIRMENTINDIVIDUALLY
Change in the Group’s ownership interests in existing
Management’s
JOINT VENTURE !NY CHANGE IN /#) OF THOSE INVESTEES IS
WITHOUTALOSSOFCONTROLISACCOUNTEDFORASANEQUITY
PRESENTEDASPARTOFTHE'ROUPS/#))NADDITIONWHEN
TRANSACTION)FTHE'ROUPLOSESCONTROLOVERASUBSIDIARY
there has been a change recognised directly in the equity
IT
OFTHEASSOCIATEORJOINTVENTURETHE'ROUPRECOGNISESITS
• $ERECOGNISES THE ASSETS INCLUDING GOODWILL AND SHAREOFANYCHANGESWHENAPPLICABLEINTHESTATEMENT
Responsibility Report
LIABILITIESOFTHESUBSIDIARY OF CHANGES IN EQUITY 5NREALISED GAINS AND LOSSES
• $ERECOGNISES THE CARRYING AMOUNT OF ANY NON
RESULTINGFROMTRANSACTIONSBETWEENTHE'ROUPANDTHE
controlling interests ASSOCIATEORJOINTVENTUREAREELIMINATEDTOTHEEXTENTOF
Business
THEINTERESTINTHEASSOCIATEORJOINTVENTURE
• $ERECOGNISESTHECUMULATIVETRANSLATIONDIFFERENCES
recorded in equity )F AN ENTITYS SHARE OF LOSSES OF AN ASSOCIATE OR A JOINT
• 2ECOGNISES THE FAIR VALUE OF THE CONSIDERATION VENTUREEQUALSOREXCEEDSITSINTERESTINTHEASSOCIATEOR Report on Corporate
received JOINTVENTUREWHICHINCLUDESANYLONGTERMINTERESTTHAT
INSUBSTANCEFORMPARTOFTHE'ROUPSNETINVESTMENTIN
Governance
• 2ECOGNISESTHEFAIRVALUEOFANYINVESTMENTRETAINED
THE ASSOCIATE OR JOINT VENTURE THE ENTITY DISCONTINUES
• 2ECOGNISESANYSURPLUSORDElCITINPROlTORLOSS RECOGNISING ITS SHARE OF FURTHER LOSSES !DDITIONAL
• 2ECLASSIlES THE PARENTS SHARE OF COMPONENTS LOSSESARERECOGNISEDONLYTOTHEEXTENTTHATTHE'ROUP
has incurred legal or constructive obligations or made
financial
PROlTSTHEENTITYRESUMESRECOGNISINGITSSHAREOFTHOSE
statements
PROlTSONLYAFTERITSSHAREOFTHEPROlTSEQUALSTHESHARE
OFLOSSESNOTRECOGNISED
302 Indian Oil Corporation Limited 2nd Integrated Annual Report
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Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
#OSTS INCURRED ON COMPUTER SOFTWARELICENSES /N TRANSITION TO )ND !3 THE 'ROUP HAS ELECTED TO
PURCHASEDDEVELOPED RESULTING IN FUTURE ECONOMIC CONTINUEWITHTHECARRYINGVALUEOFALLOFITS)NTANGIBLE
From the
BENElTS OTHER THAN SPECIlC SOFTWARE THAT ARE !SSETSRECOGNIZEDASAT!PRILMEASUREDASPER
INTEGRAL PART OF THE RELATED HARDWARE ARE CAPITALISED THEPREVIOUS'!!0ANDUSETHATCARRYINGVALUEASTHE
AS )NTANGIBLE !SSET AND AMORTISED OVER A PERIOD OF DEEMEDCOSTOFTHE)NTANGIBLE!SSETS
THREEYEARSBEGINNINGFROMTHEQUARTERINWHICHSUCH
2.4 Depreciation/Amortization
SOFTWAREISCAPITALISED(OWEVERWHERESUCHCOMPUTER
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SOFTWARE IS STILL IN DEVELOPMENT STAGE COSTS INCURRED #OSTOF00%NETOFRESIDUALVALUE EXCLUDINGFREEHOLD
DURING THE DEVELOPMENT STAGE OF SUCH SOFTWARE ARE LANDISDEPRECIATEDONSTRAIGHT
LINEMETHODASPERTHE
ACCOUNTEDASh)NTANGIBLE!SSETS5NDER$EVELOPMENTv USEFULLIFEPRESCRIBEDIN3CHEDULE))TOTHE#OMPANIES
!CTEXCEPTINCASEOFTHEFOLLOWINGASSETS
2IGHT OF WAYS WITH INDElNITE USEFUL LIVES ARE NOT
AMORTISED BUT ARE TESTED FOR IMPAIRMENT ANNUALLY A 5SEFUL LIFE OF YEARS FOR 0LANT AND %QUIPMENT
AT THE CASH
GENERATING UNIT LEVEL 4HE ASSESSMENT RELATINGTO2ETAIL/UTLETSOTHERTHANSTORAGETANKS
Description of
OF INDElNITE LIFE IS REVIEWED ANNUALLY TO DETERMINE AND RELATED EQUIPMENTS ,0' CYLINDERS AND
Capitals
WHETHERTHEINDElNITELIFECONTINUESTOBESUPPORTABLE pressure regulators considered based on technical
)FNOTTHECHANGEINUSEFULLIFEFROMINDElNITETOlNITE assessment
ISMADEONAPROSPECTIVEBASIS
B 5SEFUL LIFE OF YEARS FOR SOLAR POWER PLANT
Board of
FAIR VALUE AT THE DATE OF ACQUISITION &OLLOWING INITIAL ETCUSEFULLIFEASPERAGREEMENTOR3CHEDULE))
RECOGNITION )NTANGIBLE !SSETS ARE CARRIED AT COST WHICHEVERISEARLIER
less any accumulated amortisation and accumulated D )NCASEOFCERTAINASSETSOF2$#ENTREUSEFULLIFE
IMPAIRMENT LOSSES )NTERNALLY GENERATED INTANGIBLES is considered based on technical assessment
EXCLUDING CAPITALISED DEVELOPMENT COST ARE NOT
CAPITALISEDANDTHERELATEDEXPENDITUREISREmECTEDIN E )N CASE OF IMMOVABLE ASSETS CONSTRUCTED ON
Directors’
THE3TATEMENTOF0ROlTAND,OSSINTHEPERIODINWHICH LEASEHOLD LAND USEFUL LIFE AS PER 3CHEDULE
)) OR
Report
THEEXPENDITUREISINCURRED LEASE PERIOD OF LAND INCLUDING RENEWABLELIKELY
RENEWABLEPERIOD WHICHEVERISEARLIERAND
Management’s
LIVES ARE AMORTISED OVER THE USEFUL ECONOMIC LIFE
ON STRAIGHT LINE BASIS AND ASSESSED FOR IMPAIRMENT $EPRECIATION!MORTIZATION IS CHARGED PRO
RATA ON
WHENEVER THERE IS AN INDICATION THAT THE INTANGIBLE QUARTERLY BASIS ON ASSETS FROMUPTO THE QUARTER OF
ASSET MAY BE IMPAIRED 4HE AMORTISATION PERIOD CAPITALIZATIONSALEDISPOSALOREARMARKEDFORDISPOSAL
AND THE AMORTISATION METHOD FOR AN INTANGIBLE ASSET 2ESIDUAL VALUE IS GENERALLY CONSIDERED BETWEEN TO
Responsibility Report
WITH A lNITE USEFUL LIFE ARE REVIEWED AT THE END OF OF COST OF ASSETS EXCEPT IN FEW CASES WHERE IT IS
EACH REPORTING PERIOD #HANGES IN THE EXPECTED CONSIDEREDBASEDONTRANSFERVALUEAGREEDINRESPECTIVE
USEFUL LIFE OR THE EXPECTED PATTERN OF CONSUMPTION AGREEMENT&URTHERINCASEOFCATALYSTWITHNOBLEMETAL
Business
OF FUTURE ECONOMIC BENElTS EMBODIED IN THE ASSET CONTENTRESIDUALVALUEISCONSIDEREDBASEDONTHECOST
ARE CONSIDERED TO MODIFY THE AMORTISATION PERIOD OR OFMETALCONTENT
METHOD AS APPROPRIATE AND ARE TREATED AS CHANGES
INACCOUNTINGESTIMATES4HEAMORTISATIONEXPENSEON 4HE'ROUPDEPRECIATESCOMPONENTSOFTHEMAINASSET Report on Corporate
)NTANGIBLE!SSETSWITHlNITELIVESISRECOGNISEDINTHE THATARESIGNIlCANTINVALUEANDHAVEDIFFERENTUSEFUL
3TATEMENTOF0ROlTAND,OSSUNLESSSUCHEXPENDITURE LIVES AS COMPARED TO THE MAIN ASSET SEPARATELY 4HE
Governance
AND,OSSWHENTHEASSETISDERECOGNIZED LIKECATALYSTEXCLUDINGNOBLEMETALCONTENTANDMAJOR
Statements
statements
Financial
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
4HE'ROUPBASESITSIMPAIRMENTCALCULATIONONDETAILED .ON
MONETARYITEMSMEASUREDATFAIRVALUEINAFOREIGN
BUDGETS AND FORECAST CALCULATIONS WHICH ARE PREPARED CURRENCYARETRANSLATEDUSINGTHEEXCHANGERATESATTHE
From the
SEPARATELY FOR EACH OF THE 'ROUPS #'5S TO WHICH THE DATEWHENTHEFAIRVALUEISDETERMINED4HEGAINORLOSS
INDIVIDUAL ASSETS ARE ALLOCATED 4HESE BUDGETS AND ARISING ON TRANSLATION OF NON
MONETARY ITEMS MEASURED
FORECASTCALCULATIONSGENERALLYCOVERAPERIODOFYEARS ATFAIRVALUEISTREATEDINLINEWITHTHERECOGNITIONOFTHE
&ORLONGERPERIODSALONG
TERMGROWTHRATEISCALCULATED GAINORLOSSONTHECHANGEINFAIRVALUEOFTHEITEMIE
AND APPLIED TO PROJECT FUTURE CASH mOWS AFTER THE TRANSLATIONDIFFERENCESONITEMSWHOSEFAIRVALUEGAINOR
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lFTEENTHYEAR4OESTIMATECASHmOWPROJECTIONSBEYOND LOSSISRECOGNISEDIN/THER#OMPREHENSIVE)NCOME/#)
PERIODS COVERED BY THE MOST RECENT BUDGETSFORECASTS ORTHE3TATEMENTOF0ROlTAND,OSSAREALSORECOGNISED
'ROUP EXTRAPOLATES CASH mOW PROJECTIONS IN THE BUDGET IN/#)ORTHE3TATEMENTOF0ROlTAND,OSSRESPECTIVELY
USING A STEADY OR DECLINING GROWTH RATE FOR SUBSEQUENT
6.5 A !NY GAINS OR LOSSES ARISING DUE TO DIFFERENCES IN
YEARSUNLESSANINCREASINGRATECANBEJUSTIlED
EXCHANGERATESATTHETIMEOFTRANSLATIONORSETTLEMENT
&OR ASSETS EXCLUDING GOODWILL AN ASSESSMENT IS MADE AREACCOUNTEDFORINTHE3TATEMENTOF0ROlTAND,OSS
Description of
ATEACHREPORTINGDATETODETERMINEWHETHERTHEREISAN EITHER UNDER THE HEAD FOREIGN EXCHANGE mUCTUATION
Capitals
indication that previously recognised impairment losses OR INTEREST COST AS THE CASE MAY BE EXCEPT THOSE
NO LONGER EXIST OR HAVE DECREASED )F SUCH INDICATION RELATING TO LONG
TERM FOREIGN CURRENCY LOANS AS
EXISTS THE 'ROUP ESTIMATES THE ASSETS OR #'5S MENTIONEDIN0ARAB I BELOW
Board of
AMOUNTSINCETHELASTIMPAIRMENTLOSSWASRECOGNISED
4HE REVERSAL IS LIMITED SO THAT THE CARRYING AMOUNT OF %XCHANGEDIFFERENCESONLONG
TERMFOREIGNCURRENCY
THE ASSET DOES NOT EXCEED ITS RECOVERABLE AMOUNT LOANSRELATINGTOACQUISITIONOFDEPRECIABLEASSETS
NOR EXCEED THE CARRYING AMOUNT THAT WOULD HAVE BEEN ARE ADJUSTED TO THE CARRYING COST OF THE ASSETS
DETERMINEDNETOFDEPRECIATIONHADNOIMPAIRMENTLOSS AND DEPRECIATED OVER THE BALANCE LIFE OF THE
BEENRECOGNISEDFORTHEASSETINPRIORYEARS ASSETS )N OTHER CASES EXCHANGE DIFFERENCES ARE
Directors’
ACCUMULATEDINAh&OREIGN#URRENCY-ONETARY)TEM
5. BORROWING COSTS
Report
4RANSLATION $IFFERENCE !CCOUNTv AND AMORTIZED
"ORROWINGCOSTSTHATAREATTRIBUTABLETOTHEACQUISITION OVERTHEBALANCEPERIODOFSUCHLONG
TERMFOREIGN
Management’s
ONETHATNECESSARILYTAKESSUBSTANTIALPERIODOFTIMETO
II %XCHANGE DIFFERENCES PERTAINING TO LONG TERM
GETREADYFORINTENDEDUSE!LLOTHERBORROWINGCOSTSARE
FOREIGNCURRENCYLOANSOBTAINEDORRE
lNANCEDON
RECOGNISED IN THE 3TATEMENT OF 0ROlT AND ,OSS IN THE
ORAFTER!PRIL
PERIODINWHICHTHESAMEAREINCURRED
4HEEXCHANGEDIFFERENCESPERTAININGTOLONGTERM
Responsibility Report
6. FOREIGN CURRENCY TRANSACTIONS/TRANSALATION
FOREIGNCURRENCYLOANSOBTAINEDORRE
lNANCEDON
6.14HE 'ROUPS lNANCIAL STATEMENTS ARE PRESENTED IN OR AFTER !PRIL ARE ACCOUNTED FOR IN THE
)NDIAN2UPEE` WHICHISALSOFUNCTIONALCURRENCYOFTHE 3TATEMENTOF0ROlTAND,OSS
Business
HOLDINGCOMPANY
6.6 %XCHANGE DIFFERENCES ARISING ON MONETARY ITEMS THAT
6.2 4RANSACTIONSINFOREIGNCURRENCYAREINITIALLYRECORDEDAT FORMS PART OF A REPORTING ENTITYS NET INVESTMENT IN A
EXCHANGERATESPREVAILINGONTHEDATEOFTRANSACTIONS FOREIGNOPERATIONARERECOGNISEDINPROlTORLOSSINTHE Report on Corporate
SEPARATE lNANCIAL STATEMENTS OF THE REPORTING ENTITY
6.3 -ONETARYITEMSDENOMINATEDINFOREIGNCURRENCIESSUCH
OR THE INDIVIDUAL lNANCIAL STATEMENTS OF THE FOREIGN
Governance
OFTHENETINVESTMENT
statements
TRANSACTIONOTHERTHANTHOSEMEASUREDATFAIRVALUE
Financial
306 Indian Oil Corporation Limited 2nd Integrated Annual Report
7. INVENTORIES 7HENTHE'ROUPEXPECTSSOMEORALLOFAPROVISIONTOBE
RECOVEREDFROMATHIRDPARTYARECEIVABLEISRECOGNISED
7.1 Raw Materials & Stock-in-Process ASASEPARATEASSETBUTONLYWHENITISVIRTUALLYCERTAIN
2AW MATERIALS INCLUDING CRUDE OIL ARE VALUED AT COST ANDAMOUNTOFTHERECEIVABLECANBEMEASUREDRELIABLY
DETERMINEDONWEIGHTEDAVERAGEBASISORNETREALIZABLE 4HEEXPENSERELATINGTOAPROVISIONISPRESENTEDINTHE
VALUEWHICHEVERISLOWER 3TATEMENTOF0ROlTAND,OSSNETOFREIMBURSEMENTIF
ANY
3TOCK IN 0ROCESS IS VALUED AT RAW MATERIAL COST PLUS
CONVERSIONCOSTSASAPPLICABLEORNETREALIZABLEVALUE )F THE EFFECT OF THE TIME VALUE OF MONEY IS MATERIAL
WHICHEVERISLOWER PROVISIONSAREDISCOUNTEDUSINGACURRENTPRE
TAXRATE
THATREmECTSWHENAPPROPRIATETHERISKSSPECIlCTOTHE
#RUDEOILIN4RANSITISVALUEDATCOSTORNETREALIZABLE LIABILITY7HENDISCOUNTINGISUSEDTHEINCREASEINTHE
VALUEWHICHEVERISLOWER PROVISIONDUETOTHEPASSAGEOFTIMEISRECOGNISEDASA
lNANCECOST)NCREASEINCARRYINGAMOUNTOFPROVISIONS
)NITIALCOSTOFINVENTORIESINCLUDESTHETRANSFEROFGAINS
WHERE INTEREST RATE IS SPECIlED ARE ACCOUNTED IN
ANDLOSSESONQUALIFYINGCASHmOWHEDGESRECOGNISED
lNANCE COST TO THE EXTENT OF INCREASE ATTRIBUTABLE TO
IN/#)INRESPECTOFTHEPURCHASESOFRAWMATERIALS
PASSAGEOFTIME
7.2 Finished Products and Stock-in-Trade
Decommissioning Liability
&INISHED 0RODUCTS AND 3TOCK IN 4RADE OTHER THAN
$ECOMMISSIONINGCOSTAREPROVIDEDATTHEPRESENTVALUE
LUBRICANTS ARE VALUED AT COST DETERMINED ON @&IRST
OFEXPECTEDCOSTTOSETTLETHEOBLIGATIONUSINGESTIMATED
IN &IRST /UT BASIS OR NET REALIZABLE VALUE WHICHEVER
CASHmOWSANDARERECOGNISEDASPARTOFTHECOSTOFTHE
IS LOWER #OST OF &INISHED 0RODUCTS PRODUCED IS
PARTICULAR ASSET 4HE CASH mOWS ARE DISCOUNTED AT A
DETERMINEDBASEDONRAWMATERIALCOSTANDPROCESSING
CURRENT PRE
TAX RATE THAT REmECTS THE RISKS SPECIlC TO
COST
THE DECOMMISSIONING LIABILITY 4HE UNWINDING OF THE
60th Annual Report 2018-19 307
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
DISCOUNTISEXPENSEDASINCURREDANDRECOGNISEDINTHE SPECIlED IN A CONTRACT WITH A CUSTOMER AND EXCLUDES
3TATEMENT OF 0ROlT AND ,OSS AS A lNANCE COST 4HE AMOUNTSCOLLECTEDONBEHALFOFTHIRDPARTIES
From the
ESTIMATEDFUTURECOSTOFDECOMMISSIONINGAREREVIEWED
4HE 'ROUP HAS GENERALLY CONCLUDED THAT IT IS THE
ANNUALLYANDADJUSTEDASAPPROPRIATE#HANGESINTHE
PRINCIPAL IN ITS REVENUE ARRANGEMENTS EXCEPT A FEW
ESTIMATED FUTURE COST OR IN THE DISCOUNT RATE APPLIED
AGENCYSERVICESBECAUSEITTYPICALLYCONTROLSTHEGOODS
AREADDEDTOORDEDUCTEDFROMTHECOSTOFTHEASSET
ORSERVICESBEFORETRANSFERRINGTHEMTOTHECUSTOMER
About IndianOil
8.2 Contingent Liabilities and Contingent assets
4HE'ROUPCONSIDERSWHETHERTHEREAREOTHERPROMISESIN
3HOW
CAUSE NOTICES ISSUED BY VARIOUS 'OVERNMENT THE CONTRACT THAT ARE SEPARATE PERFORMANCE OBLIGATIONS
!UTHORITIESAREGENERALLYNOTCONSIDEREDASOBLIGATION TOWHICHAPORTIONOFTHETRANSACTIONPRICENEEDSTOBE
ALLOCATEDEGCUSTOMERLOYALTYPOINTS )NDETERMINING
7HENTHEDEMANDNOTICESARERAISEDAGAINSTSUCHSHOW
THETRANSACTIONPRICEFORTHESALEOFPRODUCTSTHE'ROUP
CAUSENOTICESANDAREDISPUTEDBYTHE'ROUPTHESEARE
CONSIDERS THE EFFECTS OF VARIABLE CONSIDERATION THE
CLASSIlEDASDISPUTEDOBLIGATIONS
Description of
EXISTENCEOFSIGNIlCANTlNANCINGCOMPONENTSNON
CASH
4HE TREATMENT IN RESPECT OF DISPUTED OBLIGATIONS ARE consideration and consideration payable to the customer
Capitals
ASUNDER IFANY
A A PROVISION IS RECOGNIZED IN RESPECT OF PRESENT 9.2 2EVENUE FROM THE SALE OF PETROLEUM PRODUCTS
Board of
METHOD ON THE BASIS OF TIME ELAPSED IN CASE OF NON
LIABILITIES UNLESS THE POSSIBILITY OF OUTmOW OF REFUNDABLEDEPOSITSFROMDEALERSANDSERVICECONTRACTS
RESOURCESISREMOTE )NCASEOFCONSTRUCTIONCONTRACTSREVENUEANDCOSTARE
#ONTINGENT ,IABILITIES ARE POSSIBLE OBLIGATIONS THAT recognised by measuring the contract progress using
ARISE FROM PAST EVENTS AND WHOSE EXISTENCE WILL ONLY input method by comparing the cost incurred and total
BECONlRMEDBYTHEOCCURRENCEORNON
OCCURRENCEOF CONTRACTCOST
Directors’
ONEORMOREFUTUREEVENTSNOTWHOLLYWITHINTHECONTROL 9.3 4HE#OMPANYHASASSUMEDTHATRECOVERYOFEXCISEDUTY
Report
OF THE #OMPANY 7HERE IT IS NOT PROBABLE THAT AN mOWSTOTHE#OMPANYONITSOWNACCOUNT4HISISFORTHE
OUTmOW OF ECONOMIC BENElTS WILL BE REQUIRED OR THE REASON THAT IT IS A LIABILITY OF THE MANUFACTURER WHICH
Management’s
LIABILITIES ARE DISCLOSED ON THE BASIS OF JUDGMENT OF OFEXCISEDUTYmOWSTOTHE#OMPANYONITSOWNACCOUNT
THE MANAGEMENTINDEPENDENT EXPERTS AND REVIEWED REVENUEINCLUDESEXCISEDUTY
AT EACH BALANCE SHEET DATE TO REmECT THE CURRENT
MANAGEMENTESTIMATE (OWEVER SALES TAX'OODS AND 3ERVICES 4AX '34 AND
VALUE ADDED TAX 6!4 IS NOT RECEIVED BY THE COMPANY
Responsibility Report
%STIMATEDAMOUNTOFCONTRACTSREMAININGTOBEEXECUTED ONITSOWNACCOUNT2ATHERITISTAXCOLLECTEDONVALUE
ONCAPITALACCOUNTARECONSIDEREDFORDISCLOSURE ADDED TO THE COMMODITYBY THE SELLERON BEHALFOF THE
! #ONTINGENT !SSET IS DISCLOSED WHERE AN INmOW OF GOVERNMENT!CCORDINGLYITISEXCLUDEDFROMREVENUE
Business
ECONOMICBENElTSISPROBABLE 9.4 Variable consideration
9. REVENUE FROM CONTRACTS WITH CUSTOMERS )F THE CONSIDERATION IN A CONTRACT INCLUDES A VARIABLE Report on Corporate
9.14HE'ROUPISINTHEBUSINESSOFOILANDGAS OPERATIONS AMOUNTTHE'ROUPESTIMATESTHEAMOUNTOFCONSIDERATION
AND IT EARNS REVENUE PRIMARILY FROM SALE OF PETROLEUM TOWHICHITWILLBEENTITLEDINEXCHANGEFORTRANSFERRING
Governance
OCCURWHENTHEASSOCIATEDUNCERTAINTYWITHTHEVARIABLE
SERVICESARETRANSFERREDTOTHECUSTOMERATANAMOUNTTHAT consideration is subsequently resolved
REmECTSTHECONSIDERATIONTOWHICHTHE#OMPANYEXPECTS
Consolidated
Statements
statements
TO BE ENTITLED IN EXCHANGE FOR THOSE GOODS OR SERVICES 4HE'ROUPPROVIDESVOLUMEREBATESTOCERTAINCUSTOMERS
Financial
Revenue is measured based on the consideration ONCE THE QUANTITY OF PRODUCTS PURCHASED DURING THE
308 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
$EFERREDTAXRELATINGTOITEMSRECOGNISEDOUTSIDEPROlT 12.4 Remeasurements:
ORLOSSISRECOGNISEDOUTSIDEPROlTORLOSSEITHERIN
2EMEASUREMENTS COMPRISING OF ACTUARIAL GAINS
From the
OTHERCOMPREHENSIVEINCOMEORINEQUITY
AND LOSSES THE EFFECT OF THE ASSET CEILING EXCLUDING
$EFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES ARE AMOUNTS INCLUDED IN NET INTEREST ON THE NET DElNED
OFFSET IF A LEGALLY ENFORCEABLE RIGHT EXISTS TO SET OFF BENElTLIABILITY ANDTHERETURNONPLANASSETSEXCLUDING
CURRENT TAX ASSETS AGAINST CURRENT TAX LIABILITIES AND AMOUNTS INCLUDED IN NET INTEREST ON THE NET DElNED
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THE DEFERRED TAXES RELATE TO THE SAME TAXABLE ENTITY BENElT LIABILITY ARE RECOGNISED IMMEDIATELY IN THE
ANDTHESAMETAXATIONAUTHORITY "ALANCE 3HEET WITH A CORRESPONDING DEBIT OR CREDIT TO
RETAINED EARNINGS THROUGH /#) IN THE PERIOD IN WHICH
12. EMPLOYEE BENEFITS
THEY OCCUR 2EMEASUREMENTS ARE NOT RECLASSIlED TO
3HORT4ERM"ENElTS PROlT OR LOSS IN SUBSEQUENT PERIODS 2EMEASUREMENTS
INRESPECTOFOTHERLONGTERMBENElTSARERECOGNISEDIN
3HORT4ERM%MPLOYEE"ENElTSAREACCOUNTEDFORINTHE THE3TATEMENTOF0ROlTANDLOSS
Description of
PERIODDURINGWHICHTHESERVICESHAVEBEENRENDERED
0ASTSERVICECOSTARERECOGNISEDINPROlTORLOSSONTHE
Capitals
0OST
%MPLOYMENT "ENElTS AND /THER ,ONG 4ERM EARLIEROF
%MPLOYEE"ENElTS
• 4HEDATEOFTHEPLANAMENDMENTORCURTAILMENTAND
A 4HE 'ROUPS CONTRIBUTION TO THE 0ROVIDENT &UND
Board of
.ETINTERESTISCALCULATEDBYAPPLYINGTHEDISCOUNT
OF 0ROlT AND ,OSS#7)0 3HORTFALL IF ANY IN THE
RATE TO THE NET DElNED BENElT LIABILITY OR ASSET
FUND ASSETS BASED ON THE 'OVERNMENT SPECIlED
4HE'ROUPRECOGNISESTHEFOLLOWINGCHANGESINTHE
MINIMUMRATEOFRETURNISMADEGOODBYTHE'ROUP
NETDElNEDBENElTOBLIGATIONASANEXPENSEINTHE
AND CHARGED TO THE 3TATEMENT OF 0ROlT AND ,OSS
3TATEMENTOF0ROlTAND,OSS
#7)0
• 3ERVICECOSTCOMPRISINGCURRENTSERVICECOSTSPAST
Directors’
B 4HE 'ROUP OPERATES DElNED BENElT PLANS FOR
Report
SERVICECOSTSGAINSANDLOSSESONCURTAILMENTSAND
'RATUITY0OST 2ETIREMENT -EDICAL "ENElTS
NON
ROUTINESETTLEMENTSAND
2ESETTLEMENT &ELICITATION 3CHEME %X
GRATIA AND
Management’s
UNIT CREDIT METHOD OF ACTUARIAL VALUATION MADE AT
THE END OF THE YEAR /UT OF THESE PLANS 'RATUITY 13.1 'OVERNMENT GRANTS ARE RECOGNISED WHERE THERE IS
0OST2ETIREMENT-EDICAL"ENElTSAND!/$PENSION REASONABLE ASSURANCE THAT THE GRANT WILL BE RECEIVED
FUNDAREADMINISTEREDTHROUGHRESPECTIVE4RUSTS ANDALLATTACHEDCONDITIONSWILLBECOMPLIEDWITH
Responsibility Report
C /BLIGATIONS ON OTHER LONG TERM EMPLOYEE BENElTS 13.2 Grant relating to Assets (Capital Grants)
VIZLEAVEENCASHMENTAND,ONG3ERVICE!WARDSARE
PROVIDEDUSINGTHEPROJECTEDUNITCREDITMETHODOF )NCASEOFGRANTSRELATINGTODEPRECIABLEASSETSTHECOST
OFTHEASSETISSHOWNATGROSSVALUEANDGRANTTHEREON
Business
ACTUARIALVALUATIONMADEATTHEENDOFTHEYEAR/UT
OFTHESEOBLIGATIONSLEAVEENCASHMENTOBLIGATIONS ISTREATEDAS$EFERRED)NCOMEWHICHARERECOGNIZEDAS
ARE FUNDED THROUGH QUALIFYING INSURANCE POLICIES INCOME IN THE 3TATEMENT OF 0ROlT AND ,OSS OVER THE
MADEWITHINSURANCECOMPANIESCORPORATION PERIOD AND IN THE PROPORTION IN WHICH DEPRECIATION IS Report on Corporate
CHARGED
D 4HE 'ROUP ALSO OPERATES A DElNED CONTRIBUTION
13.3 Grant related to Income (Revenue Grants)
Governance
SCHEMEFOR0ENSIONBENElTSFORITSEMPLOYEESAND
THECONTRIBUTIONISREMITTEDTOASEPARATE4RUST 2EVENUE GRANTS ARE RECOGNISED IN THE 3TATEMENT OF
4ERMINATION"ENElTS 0ROlTAND,OSSONASYSTEMATICBASISOVERTHEPERIODS
INWHICHTHEENTITYRECOGNISESASEXPENSESTHERELATED
financial
INCURRENCE
Statements
statements
ACQUIREDRIGHTSTOEXPLORE • %XPECTED TO BE REALISED OR INTENDED TO BE SOLD OR
consumed in normal operating cycle
EXPLORATORYDRILLINGCOSTS
• (ELDPRIMARILYFORTHEPURPOSEOFTRADING
#OSTOF3URVEYANDPROSPECTINGACTIVITIESCONDUCTEDIN
THE SEARCH OF OIL AND GAS ARE EXPENSED AS EXPLORATION • %XPECTEDTOBEREALISEDWITHINTWELVEMONTHSAFTER
COSTINTHEYEARINWHICHTHESEAREINCURRED THEREPORTINGPERIODOR
)F THE PROJECT IS NOT VIABLE BASED UPON TECHNICAL • #ASH OR #ASH %QUIVALENTS UNLESS RESTRICTED FROM
FEASIBILITYANDCOMMERCIALVIABILITYSTUDYTHENALLCOSTS BEINGEXCHANGEDORUSEDTOSETTLEALIABILITYFORAT
RELATING TO %XPLORATORY 7ELLS ARE EXPENSED IN THE YEAR LEASTTWELVEMONTHSAFTERTHEREPORTINGPERIOD
WHENDETERMINEDTOBEDRY !LLOTHERASSETSARECLASSIlEDASNON
CURRENT
60th Annual Report 2018-19 311
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
15.3 !LIABILITYISTREATEDASCURRENTWHEN CLASSIlED AS HELD FOR SALE ARE PRESENTED SEPARATELY IN
THE"ALANCE3HEET
• )T IS EXPECTED TO BE SETTLED IN NORMAL OPERATING
From the
cycle 00% AND )NTANGIBLE !SSETS ONCE CLASSIlED AS HELD FOR
SALEARENOTDEPRECIATEDORAMORTIZED
• )TISHELDPRIMARILYFORTHEPURPOSEOFTRADING
17. FINANCIAL INSTRUMENTS
• )T IS DUE TO BE SETTLEDWITHIN TWELVE MONTHS AFTER
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THEREPORTINGPERIODOR !lNANCIALINSTRUMENTISANYCONTRACTTHATGIVESRISETO
AlNANCIALASSETOFONEENTITYANDAlNANCIALLIABILITYOR
• 4HERE IS NO UNCONDITIONAL RIGHT TO DEFER THE
EQUITYINSTRUMENTOFANOTHERENTITY
SETTLEMENTOFTHELIABILITYFORATLEASTTWELVEMONTHS
AFTERTHEREPORTINGPERIOD 17.1 Financial Assets
!LLOTHERLIABILITIESARECLASSIlEDASNON
CURRENT Initial recognition and measurement
Description of
16. NON-CURRENT ASSETS HELD FOR SALE !LL&INANCIAL!SSETSARERECOGNISEDINITIALLYATFAIRVALUE
PLUSINTHECASEOF&INANCIAL!SSETSNOTRECORDEDATFAIR
Capitals
16.1 4HE 'ROUP CLASSIlES NON
CURRENT ASSETS AND DISPOSAL
VALUE THROUGH PROlT OR LOSS TRANSACTION COST THAT ARE
GROUPSASHELDFORSALEIFTHEIRCARRYINGAMOUNTSWILLBE
ATTRIBUTABLETOTHEACQUISITIONOFTHElNANCIALASSETS
recovered principally through a sale rather than through
Board of
SELLWILLBEWITHDRAWN-ANAGEMENTMUSTBECOMMITTED
TOTHE SALEEXPECTEDWITHINONEYEARFROM THE DATE OF • &INANCIAL!SSETSATAMORTISEDCOST
CLASSIlCATION
• $EBT )NSTRUMENTS AT FAIR VALUE THROUGH /THER
16.2 &ORTHESEPURPOSESSALETRANSACTIONSINCLUDEEXCHANGES #OMPREHENSIVE)NCOME&64/#)
OFNON
CURRENTASSETSFOROTHERNON
CURRENTASSETSWHEN
THE EXCHANGE HAS COMMERCIAL SUBSTANCE 4HE CRITERIA • %QUITY )NSTRUMENTS AT FAIR VALUE THROUGH /THER
Directors’
#OMPREHENSIVE)NCOME&64/#)
Report
FORHELDFORSALECLASSIlCATIONISREGARDEDMETONLYWHEN
THEASSETSORDISPOSALGROUPISAVAILABLEFORIMMEDIATE • &INANCIAL !SSETS AND DERIVATIVES AT FAIR VALUE
SALEINITSPRESENTCONDITIONSUBJECTONLYTOTERMSTHAT THROUGHPROlTORLOSS&640,
Management’s
NOT ABANDONED 4HE 'ROUP TREATS SALE OF THE ASSET OR !&INANCIAL!SSETSISMEASUREDATTHEAMORTISEDCOSTIF
DISPOSALGROUPTOBEHIGHLYPROBABLEWHEN BOTHTHEFOLLOWINGCONDITIONSAREMET
• 4HEAPPROPRIATELEVELOFMANAGEMENTISCOMMITTED A 4HE ASSET IS HELD WITHIN A BUSINESS MODEL
TOAPLANTOSELLTHEASSETORDISPOSALGROUP WHOSE OBJECTIVE IS TO HOLD ASSETS FOR COLLECTING
Responsibility Report
• An active programme to locate a buyer and complete CONTRACTUALCASHmOWSAND
THEPLANHASBEENINITIATEDIFAPPLICABLE B #ONTRACTUAL TERMS OF THE ASSET GIVE RISE ON
Business
• 4HE ASSET OR DISPOSAL GROUP IS BEING ACTIVELY SPECIlED DATES TO CASH mOWS THAT ARE SOLELY
MARKETED FOR SALE AT A PRICE THAT IS REASONABLE IN PAYMENTSOFPRINCIPALANDINTEREST300) ONTHE
RELATIONTOITSCURRENTFAIRVALUE PRINCIPALAMOUNTOUTSTANDING
Report on Corporate
• 4HE SALE IS EXPECTED TO QUALIFY FOR RECOGNITION AS !FTERINITIALMEASUREMENTSUCH&INANCIAL!SSETS
ACOMPLETEDSALEWITHINONEYEARFROMTHEDATEOF are subsequently measured at amortised cost
Governance
WILLBEMADEORTHATTHEPLANWILLBEWITHDRAWN PARTOFTHE%)24HE%)2AMORTISATIONISINCLUDED
16.3.ON
CURRENT !SSETS HELD FOR SALE AND DISPOSAL GROUPS INlNANCEINCOMEINTHEPROlTORLOSS4HELOSSES
Consolidated
AREMEASUREDATTHELOWEROFTHEIRCARRYINGAMOUNTAND
Financial
THE FAIR VALUE LESS COSTS TO SELL !SSETS AND LIABILITIES PROlT OR LOSS 4HIS CATEGORY GENERALLY APPLIES TO
TRADEANDOTHERRECEIVABLES
312 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
3IMPLIlED!PPROACH • $EBT INSTRUMENTS MEASURED AT &64/#) 3INCE
&INANCIAL !SSETS ARE ALREADY REmECTED AT FAIR
4HE'ROUPFOLLOWS@SIMPLIlEDAPPROACHFORRECOGNITION
From the
VALUE IMPAIRMENT ALLOWANCE IS NOT FURTHER
OFIMPAIRMENTLOSSALLOWANCEON4RADE2ECEIVABLES
REDUCED FROM ITS VALUE 2ATHER %#, AMOUNT IS
4HE APPLICATION OF SIMPLIlED APPROACH DOES NOT PRESENTEDAS@ACCUMULATEDIMPAIRMENTAMOUNT
REQUIRE THE 'ROUP TO TRACK CHANGES IN CREDIT RISK INTHE/#)
2ATHER IT RECOGNISES IMPAIRMENT LOSS ALLOWANCE
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17.2 Financial Liabilities
BASEDONLIFETIME%#,SATEACHREPORTINGDATERIGHT
FROMITSINITIALRECOGNITION Initial recognition and measurement.
General Approach &INANCIAL ,IABILITIES ARE CLASSIlED AT INITIAL
RECOGNITION AS lNANCIAL LIABILITIES AT FAIR VALUE
&ORRECOGNITIONOFIMPAIRMENTLOSSONOTHER&INANCIAL
THROUGH PROlT OR LOSS AND lNANCIAL LIABILITIES AT
!SSETSANDRISKEXPOSURETHE'ROUPDETERMINESTHAT
AMORTISEDCOSTASAPPROPRIATE
Description of
WHETHERTHEREHASBEENASIGNIlCANTINCREASEINTHE
CREDITRISKSINCEINITIALRECOGNITION)FCREDITRISKHAS !LL lNANCIAL ,IABILITIES ARE RECOGNISED INITIALLY AT
Capitals
NOT INCREASED SIGNIlCANTLY
MONTHS %#, IS USED FAIRVALUEANDINTHECASEOFLIABILITIESMEASUREDAT
TOPROVIDEFORIMPAIRMENTLOSS(OWEVERIFCREDITRISK AMORTISEDCOSTNETOFDIRECTLYATTRIBUTABLETRANSACTION
HASINCREASEDSIGNIlCANTLYLIFETIME%#,ISUSED)FIN COSTS
Board of
the entity reverts to recognising impairment loss
Subsequent measurement
ALLOWANCEBASEDON
MONTHS%#,
4HEMEASUREMENTOFlNANCIALLIABILITIESDEPENDSON
,IFETIME%#,ARETHEEXPECTEDCREDITLOSSESRESULTING
FROMALLPOSSIBLEDEFAULTEVENTSOVERTHEEXPECTEDLIFE THEIRCLASSIlCATIONASDESCRIBEDBELOW
OF A lNANCIAL INSTRUMENT 4HE
MONTHS %#, IS A ! &INANCIAL,IABILITIESATFAIRVALUETHROUGHPROlTOR
Directors’
PORTIONOFTHELIFETIME%#,WHICHRESULTSFROMDEFAULT loss
Report
EVENTSTHATAREPOSSIBLEWITHINMONTHSAFTERTHE
REPORTINGDATE &INANCIAL,IABILITIESATFAIRVALUETHROUGHPROlTOR
LOSSINCLUDElNANCIALLIABILITIESHELDFORTRADING
Management’s
PORTFOLIOOFITSTRADERECEIVABLES4HEPROVISIONMATRIX
&INANCIAL ,IABILITIES ARE CLASSIlED AS HELD FOR
IS BASED ON ITS HISTORICALLY OBSERVED DEFAULT RATES
OVER THE EXPECTED LIFE OF THE TRADE RECEIVABLES AND TRADING IF THEY ARE INCURRED FOR THE PURPOSE OF
IS ADJUSTED FOR FORWARD
LOOKING ESTIMATES !T EVERY REPURCHASINGINTHENEARTERM4HISCATEGORYALSO
REPORTING DATE THE HISTORICAL OBSERVED DEFAULT RATES INCLUDESDERIVATIVElNANCIALINSTRUMENTSENTERED
Responsibility Report
ARE UPDATED AND CHANGES IN THE FORWARD
LOOKING INTO BY THE 'ROUP THAT ARE NOT DESIGNATED AS
ESTIMATES ARE ANALYSED /N THAT BASIS THE 'ROUP hedging instruments in hedge relationships as
estimates provision on trade receivables at the DElNEDBY)ND!3
Business
REPORTINGDATE 'AINSORLOSSESONLIABILITIESHELDFORTRADINGARE
%#, IMPAIRMENT LOSS ALLOWANCE OR REVERSAL RECOGNISEDINTHE3TATEMENTOF0ROlTAND,OSS
RECOGNIZED DURING THE PERIOD IS RECOGNIZED AS B. Financial Liabilities at amortized cost Report on Corporate
EXPENSEINCOMEINTHE3TATEMENTOF0ROlTAND,OSS
4HE BALANCE SHEET PRESENTATION FOR VARIOUS lNANCIAL &INANCIAL,IABILITIESTHATARENOTHELD
FOR
TRADING
Governance
INSTRUMENTSISDESCRIBEDBELOW ANDARENOTDESIGNATEDASAT&640,AREMEASURED
AT AMORTISED COST AT THE END OF SUBSEQUENT
• &INANCIAL!SSETSMEASUREDASATAMORTISEDCOST ACCOUNTING PERIODS 4HE CARRYING AMOUNTS
%#, IS PRESENTED AS AN ALLOWANCE IE AS AN OF lNANCIAL LIABILITIES THAT ARE SUBSEQUENTLY
INTEGRALPARTOFTHEMEASUREMENTOFTHOSEASSETS
financial
LOSSESARERECOGNISEDINTHE3TATEMENTOF0ROlT
Statements
statements
AND,OSSWHENTHELIABILITIESAREDERECOGNISEDAS
IMPAIRMENT ALLOWANCE FROM THE GROSS CARRYING WELLASTHROUGHTHE%)2AMORTISATIONPROCESS
AMOUNT
314 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
!MOUNTS PREVIOUSLY RECOGNIZED IN /#) AND BETWEENMARKETPARTICIPANTSATTHEMEASUREMENTDATE
ACCUMULATED IN EQUITY RELATING TO EFFECTIVE PORTION
From the
20.24HEFAIRVALUEMEASUREMENTISBASEDONTHEPRESUMPTION
ARERECLASSIlEDTO3TATEMENTOF0ROlTAND,OSSINTHE
THAT THE TRANSACTION TO SELL THE ASSET OR TRANSFER THE
PERIODS WHEN THE HEDGED ITEM AFFECTS PROlT OR LOSS
LIABILITY TAKES PLACE EITHER IN THE PRINCIPAL MARKET FOR
INTHESAMELINEITEMASTHERECOGNIZEDHEDGEDITEM
THE ASSET OR LIABILITY OR )N THE ABSENCE OF A PRINCIPAL
OR TREATED AS BASIS ADJUSTMENT IF A HEDGED FORECAST
MARKETINTHEMOSTADVANTAGEOUSMARKETFORTHEASSET
TRANSACTION SUBSEQUENTLY RESULTSIN THE RECOGNITION OF
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OR LIABILITY 4HE PRINCIPAL OR THE MOST ADVANTAGEOUS
ANON
lNANCIALASSETORNON
lNANCIALLIABILITY7HENA
MARKETMUSTBEACCESSIBLEBYTHE'ROUP
FORECASTEDTRANSACTIONISNOLONGEREXPECTEDTOOCCUR
the cumulative gain or loss accumulated in equity is 20.34HE FAIR VALUE OF AN ASSET OR A LIABILITY IS MEASURED
TRANSFERREDTOTHE3TATEMENTOF0ROlTAND,OSS USINGTHEASSUMPTIONSTHATMARKETPARTICIPANTSWOULD
USE WHEN PRICING THE ASSET OR LIABILITY ASSUMING THAT
(EDGE ACCOUNTING IS DISCONTINUED WHEN THE HEDGING
MARKETPARTICIPANTSACTINTHEIRECONOMICBESTINTEREST
INSTRUMENTEXPIRESORISSOLDTERMINATEDORNOLONGER
Description of
QUALIlESFORHEDGEACCOUNTING 20.4!FAIRVALUEMEASUREMENTOFANON
lNANCIALASSETTAKES
Capitals
INTOACCOUNTAMARKETPARTICIPANTSABILITYTOGENERATE
Derivate that are not designated as hedge instrument
ECONOMICBENElTSBYUSINGTHEASSETINITSHIGHESTAND
4HE#OMPANYENTERSINTOCERTAINDERIVATIVECONTRACTSTO BESTUSEORBYSELLINGITTOANOTHERMARKETPARTICIPANT
Board of
/THER)NCOMEOR/THER%XPENSESAS'AINON$ERIVATIVES
AVAILABLETOMEASUREFAIRVALUEMAXIMISINGTHEUSEOF
OR,OSSON$ERIVATIVESRESPECTIVELY
RELEVANT OBSERVABLE INPUTS AND MINIMISING THE USE OF
17.6 Commodity Contracts UNOBSERVABLEINPUTS
Commodity contracts that are entered into and continue 20.6!LLASSETSANDLIABILITIESFORWHICHFAIRVALUEISMEASURED
TOBEHELDFORTHEPURPOSEOFTHERECEIPTORDELIVERYOF ORDISCLOSEDINTHElNANCIALSTATEMENTSARECATEGORISED
Directors’
A NON
lNANCIAL ITEM IN ACCORDANCE WITH THE 'ROUPS WITHIN THE FAIR VALUE HIERARCHY DESCRIBED AS FOLLOWS
Report
EXPECTEDPURCHASESALEORUSAGEREQUIREMENTSAREHELD BASEDONTHELOWESTLEVELINPUTTHATISSIGNIlCANTTOTHE
ATCOST FAIRVALUEMEASUREMENTASAWHOLE
Management’s
Cash and Cash Equivalent in the Balance Sheet comprise
CASHATBANKSANDONHANDANDSHORT
TERMDEPOSITSWITH ,EVEL 6ALUATION TECHNIQUES FOR WHICH THE
ANORIGINALMATURITYOFTHREEMONTHSORLESSWHICHARE LOWEST LEVEL INPUT THAT IS SIGNIlCANT TO THE FAIR VALUE
SUBJECTTOANINSIGNIlCANTRISKOFCHANGESINVALUE measurement is directly or indirectly observable
Responsibility Report
19. TREASURY SHARES ,EVEL 6ALUATION TECHNIQUES FOR WHICH THE
LOWEST LEVEL INPUT THAT IS SIGNIlCANT TO THE FAIR VALUE
0URSUANTTOSCHEMEOFAMALGAMATION)/#3HARES4RUST
measurement is unobservable
HASBEENSETUPBY)/#,FORHOLDINGTREASURYSHARESIN
Business
RELATIONTO)"0AND"20,MERGERS4HESHARESHELDBY &OR ASSETS AND LIABILITIES THAT ARE RECOGNISED IN THE
)/#3HARES4RUSTARETREATEDASTREASURYSHARES lNANCIAL STATEMENTS ON A RECURRING BASIS THE 'ROUP
DETERMINES WHETHER TRANSFERS HAVE OCCURRED BETWEEN
/WN EQUITY INSTRUMENTS THAT ARE REACQUIRED TREASURY Report on Corporate
LEVELS IN THE HIERARCHY BY RE
ASSESSING CATEGORISATION
SHARES ARERECOGNISEDATCOSTANDDEDUCTEDFROMEQUITY
BASEDONTHELOWESTLEVELINPUTTHATISSIGNIlCANTTOTHE
.OGAINORLOSSISRECOGNISEDINTHE3TATEMENTOF0ROlT
Governance
FAIRVALUEMEASUREMENTASAWHOLE ATTHEENDOFEACH
AND,OSSONTHEPURCHASESALEISSUEORCANCELLATIONOF
REPORTINGPERIOD
THE'ROUPSOWNEQUITYINSTRUMENTS
)NCASEOF,EVELVALUATIONSEXTERNALVALUERSAREALSO
20. FAIR VALUE MEASUREMENT
INVOLVED IN SOME CASES FOR VALUATION OF ASSETS AND
financial
20.1 4HE 'ROUP MEASURES lNANCIAL INSTRUMENTS SUCH AS LIABILITIESSUCHASUNQUOTED&INANCIAL!SSETSLOANSTO
DERIVATIVESATFAIRVALUEATEACH"ALANCE3HEETDATE&AIR RELATEDPARTIESETC
Consolidated
Statements
statements
VALUEISTHEPRICETHATWOULDBERECEIVEDTOSELLANASSET
Financial
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
STILLRESULTSINANEXCESSOFTHEFAIRVALUEOFNETASSETS III. New Standards/amendments and other changes effective
ACQUIRED OVERTHEAGGREGATE CONSIDERATIONTRANSFERRED from April 1, 2018
From the
then the gain is recognised in OCI and accumulated in
(1) Ind AS 115, Revenue from Contract with Customers
EQUITYAS#APITAL2ESERVE(OWEVERIFTHEREISNOCLEAR
EVIDENCE OF BARGAIN PURCHASE THE ENTITY RECOGNISES 4HE 'ROUP HAS ADOPTED THIS )ND !3 WEF !PRIL
THE GAIN DIRECTLY IN EQUITY AS CAPITAL RESERVE WITHOUT 4HE EFFECT OF THIS STANDARD ALONG WITH
ROUTINGTHESAMETHROUGH/#) RELEVANTDISCLOSURESAREPROVIDEDIN.OTE
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!FTER INITIAL RECOGNITION GOODWILL IS MEASURED AT COST (2) Amendments to Ind AS 21, The Effects of Changes
LESS ANY ACCUMULATED IMPAIRMENT LOSSES &OR THE in Foreign Exchange Rates
PURPOSE OF IMPAIRMENT TESTING GOODWILL ACQUIRED IN
A BUSINESS COMBINATION IS FROM THE ACQUISITION DATE 4HE 'ROUP HAS ADOPTED THE AMENDMENTS WEF
ALLOCATEDTOEACHOFTHE'ROUPSCASH
GENERATINGUNITS !PRIL4HEEFFECTOFTHISAMENDMENTISNOT
THAT ARE EXPECTED TO BENElT FROM THE COMBINATION MATERIAL
Description of
IRRESPECTIVEOFWHETHEROTHERASSETSORLIABILITIESOFTHE (3) Ind AS-109 Hedge Accounting
Capitals
ACQUIREEAREASSIGNEDTOTHOSEUNITS
4HE 'ROUP HAS ADOPTED HEDGE ACCOUNTING WRT
! CASH GENERATING UNIT TO WHICH GOODWILL HAS BEEN DERIVATIVETRANSACTIONSENTEREDWEF!PRIL
ALLOCATED IS TESTED FOR IMPAIRMENT ANNUALLY OR MORE 4HE EFFECT OF THIS ADOPTION ALONG WITH RELEVANT
Board of
IMPAIRMENTLOSSISALLOCATEDlRSTTOREDUCETHECARRYING 4HE -INISTRY OF #ORPORATE !FFAIRS VIDE ITS NOTIlCATIONS
AMOUNTOFANYGOODWILLALLOCATEDTOTHEUNITANDTHEN DATED-ARCHHASNOTIlED)ND!3
,EASES
TO THE OTHER ASSETS OF THE UNIT PRO RATA BASED ON THE AND CERTAIN AMENDMENTS TO EXISTING )ND !3 4HESE
CARRYINGAMOUNTOFEACHASSETINTHEUNIT AMENDMENTS ARE APPLICABLE FROM !PRIL TO THE
!NYIMPAIRMENTLOSSFORGOODWILLISRECOGNISEDINPROlT 'ROUP4HE'ROUPSASSESSMENTOFTHEIMPACTOFTHENEW
STANDARDSANDAMENDMENTSTOTHEEXTENTAPPLICABLEIS
Directors’
OR LOSS !N IMPAIRMENT LOSS RECOGNISED FOR GOODWILL IS
Report
NOTREVERSEDINSUBSEQUENTPERIODS SETOUTBELOW
(1) Ind AS-116 Leases
7HEREGOODWILLHASBEENALLOCATEDTOACASH
GENERATING
Management’s
IS INCLUDED IN THE CARRYING AMOUNT OF THE OPERATION PRESENTATION AND DISCLOSURE OF LEASES AND REQUIRES
WHENDETERMININGTHEGAINORLOSSONDISPOSAL'OODWILL LESSEESTOACCOUNTFORALLLEASESUNDERASINGLEON
disposed in these circumstances is measured based on BALANCE SHEET MODEL !T THE COMMENCEMENT DATE
THE RELATIVE VALUES OF THE DISPOSED OPERATION AND THE OFALEASEALESSEEWILLRECOGNISEALIABILITYTOMAKE
Responsibility Report
PORTIONOFTHECASH
GENERATINGUNITRETAINED LEASEPAYMENTSIETHELEASELIABILITY ANDANASSET
representing the right to use the underlying asset
)FTHEINITIALACCOUNTINGFORABUSINESSCOMBINATIONIS
DURINGTHELEASETERMIETHERIGHT
OF
USEASSET
INCOMPLETEBYTHEENDOFTHEREPORTINGPERIODINWHICH
,ESSEES WILL BE REQUIRED TO SEPARATELY RECOGNISE
Business
THE COMBINATION OCCURS THE 'ROUP REPORTS PROVISIONAL
THE INTEREST EXPENSE ON THE LEASE LIABILITY AND THE
AMOUNTS FOR THE ITEMS FOR WHICH THE ACCOUNTING IS
DEPRECIATIONEXPENSEONTHERIGHT
OF
USEASSET4HE
INCOMPLETE 4HOSE PROVISIONAL AMOUNTS ARE ADJUSTED
STANDARD INCLUDES TWO RECOGNITION EXEMPTIONS FOR Report on Corporate
THROUGH GOODWILL DURING THE MEASUREMENT PERIOD OR
LESSEESnLEASESOFLOW
VALUEASSETSANDSHORT
TERM
ADDITIONALASSETSORLIABILITIESARERECOGNISEDTOREmECT
LEASESIELEASESWITHALEASETERMOFMONTHS
NEWINFORMATIONOBTAINEDABOUTFACTSANDCIRCUMSTANCES
Governance
ORLESS
THATEXISTEDATTHEACQUISITIONDATETHATIFKNOWNWOULD
HAVE AFFECTED THE AMOUNTS RECOGNIZED AT THAT DATE ,ESSORACCOUNTINGUNDER)ND!3ISSUBSTANTIALLY
4HESE ADJUSTMENTS ARE CALLED AS MEASUREMENT PERIOD UNCHANGED FROM ACCOUNTING UNDER )ND !3
,ESSORSWILLCONTINUETOCLASSIFYALLLEASESUSINGTHE
financial
ADJUSTMENTS4HEMEASUREMENTPERIODDOESNOTEXCEED
ONEYEARFROMTHEACQUISITIONDATE SAME CLASSIlCATION PRINCIPLE AS IN )ND !3 AND
DISTINGUISHBETWEENTWOTYPESOFLEASESOPERATING
Consolidated
Statements
statements
ANDLESSORSTOMAKEMOREEXTENSIVEDISCLOSURESTHAN
UNDER)ND!3
318 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Chairman’s Desk
SETTLEMENT WITHOUT CONSIDERING THE EFFECT OF THE ASSET
CEILING4HISAMOUNTISRECOGNISEDINPROlTORLOSS!N
From the
ENTITY THEN DETERMINES THE EFFECT OF THE ASSET CEILING
AFTER THE PLAN AMENDMENT CURTAILMENT OR SETTLEMENT
!NYCHANGEINTHATEFFECTEXCLUDINGAMOUNTSINCLUDED
INTHENETINTERESTISRECOGNISEDINOTHERCOMPREHENSIVE
INCOME4HESEAMENDMENTSWILLAPPLYONLYTOANYFUTURE
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PLAN AMENDMENTS CURTAILMENTS OR SETTLEMENTS OF THE
#OMPANY 4HIS AMENDMENT WILL NOT HAVE ANY MATERIAL
EFFECTONTHElNANCIALSTATEMENTS
(4) Amendment to Ind AS 23, Borrowing Costs
4HE AMENDMENTS CLARIFY THAT AN ENTITY TREATS AS PART
Description of
OFGENERALBORROWINGSANYBORROWINGORIGINALLYMADETO
DEVELOPAQUALIFYINGASSETWHENSUBSTANTIALLYALLOFTHE
Capitals
ACTIVITIESNECESSARYTOPREPARETHATASSETFORITSINTENDED
USEORSALEARECOMPLETE4HISAMENDMENTWILLNOTHAVE
ANYMATERIALEFFECTONTHElNANCIALSTATEMENTS
Board of
!N ENTITYS NET INVESTMENT IN JOINT VENTURE AND
ASSOCIATESINCLUDEINVESTMENTSINORDINARYSHARESOTHER
INTERESTS THAT ARE ACCOUNTED FOR USING EQUITY METHOD
AND OTHER LONG
TERM INTERESTS SUCH AS LONG TERM LOANS
THESETTLEMENTOFWHICHISNEITHERPLANNEDNORLIKELYTO
OCCUR IN FORESEEABLE FUTURE 4HESE LONG
TERM INTERESTS
Directors’
ARE NOT ACCOUNTED FOR IN ACCORDANCE WITH )ND !3
Report
INSTEAD THEYAREGOVERNEDBY THE PRINCIPLES OF )ND!3
)T IMPLIES THAT THE EXPECTED CREDIT LOSS MODEL IN
Management’s
4HEAMENDMENTSALSOCLARIlEDTHATINAPPLYING)ND!3
AN ENTITY DOES NOT TAKE ACCOUNT OF ANY LOSSES OF
THEASSOCIATEORJOINTVENTUREORANYIMPAIRMENTLOSSES
ON THE NET INVESTMENT RECOGNISED AS ADJUSTMENTS TO
THENETINVESTMENTINTHEASSOCIATEORJOINTVENTURETHAT
Responsibility Report
ARISEFROMAPPLYING)ND!3)NVESTMENTSIN!SSOCIATES
AND*OINT6ENTURES4HISAMENDMENTWILLNOTHAVEANY
MATERIALEFFECTONTHElNANCIALSTATEMENTS
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
320 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 1B : SIGNIFICANT ACCOUNTING ESTIMATES & JUDGEMENTS
Chairman’s Desk
INVOLVES THE EXERCISE OF SIGNIlCANT JUDGEMENT AND THE USE OF )MPAIRMENTOFlNANCIALASSETS
ESTIMATESREGARDINGTHEOUTCOMEOFFUTUREEVENTS2EFER.OTE
From the
4HE IMPAIRMENT PROVISIONS FOR TRADE RECEIVABLES ARE BASED ON
FORTHERELATEDDISCLOSURES
ASSUMPTIONS ABOUT RISK OF DEFAULT AND EXPECTED LOSS RATES 4HE
ESTIMATES AND ASSUMPTIONS 'ROUPUSESJUDGEMENTINMAKINGTHESEASSUMPTIONSANDSELECTING
THE INPUTS TO THE IMPAIRMENT CALCULATION BASED ON THE 'ROUPS
4HEKEYASSUMPTIONSCONCERNINGTHEFUTUREANDOTHERKEYSOURCES
PASTHISTORYANDOTHERFACTORSATTHEENDOFEACHREPORTINGPERIOD
OF ESTIMATION UNCERTAINTY AT THE REPORTING DATE THAT HAVE A
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!LSOREFER.OTE
FORIMPAIRMENTANALSYSISANDPROVISION
SIGNIlCANTRISKOFCAUSINGAMATERIALADJUSTMENTTOTHECARRYING
AMOUNTS OF ASSETS AND LIABILITIES WITHIN THE NEXT lNANCIAL YEAR Provision for decommissioning
ARE DESCRIBED BELOW %XISTING CIRCUMSTANCES AND ASSUMPTIONS
!TTHEENDOFTHEOPERATINGLIFEOFTHE#ORPORATIONSFACILITIESAND
ABOUTFUTUREDEVELOPMENTSHOWEVERMAYCHANGEDUETOMARKET
PROPERTIESANDUPONRETIREMENTOFITSOILANDNATURALGASASSETS
CHANGESORCIRCUMSTANCESARISINGTHATAREBEYONDTHECONTROLOF
DECOMMISSIONINGCOSTSWILLBEINCURRED%STIMATESOFTHESECOSTS
THE'ROUP3UCHCHANGESAREREmECTEDINTHEASSUMPTIONSWHEN
ARESUBJECTTOUNCERTAINTYASSOCIATEDWITHTHEMETHODTIMINGAND
Description of
THEYOCCUR
EXTENTOFFUTUREDECOMMISSIONINGACTIVITIES4HELIABILITYRELATED
Capitals
$ElNEDBENElTPLANS/THER,ONGTERMEMPLOYEEBENElTS ASSET AND EXPENSE ARE IMPACTED BY ESTIMATES WITH RESPECT TO
THECOSTSANDTIMINGOFDECOMMISSIONING2EFERNOTE
FORTHE
4HE COST OF THE DElNED BENElT PLANS AND OTHER LONG TERM
PROVISIONSINRESPECTOFDECOMMISSIONINGCOST
EMPLOYEEBENElTPLANSAREDETERMINEDUSINGACTUARIALVALUATIONS
Board of
MORTALITYRATES$UETOTHECOMPLEXITIESINVOLVEDINTHEVALUATION
AND ITS LONG
TERM NATURE A DElNED BENElT OBLIGATION IS HIGHLY
SENSITIVE TO CHANGES IN THESE ASSUMPTIONS !LL ASSUMPTIONS ARE
REVIEWEDATEACHREPORTINGDATE
4HEPARAMETERMOSTSUBJECTTOCHANGEISTHEDISCOUNTRATE4HE
Directors’
MANAGEMENTCONSIDERSTHEINTERESTRATESOFGOVERNMENTSECURTITIES
Report
BASEDONEXPECTEDSETTLEMENTPERIODOFVARIOUSPLANS
&URTHER DETAILS ABOUT VARIOUS EMPLOYEE BENElT OBLIGATIONS ARE
Management’s
&AIRVALUEMEASUREMENTOFlNANCIALINSTRUMENTS
7HEN THE FAIR VALUES OF lNANCIAL ASSETS AND lNANCIAL LIABILITIES
recorded in the balance sheet cannot be measured based on
QUOTEDPRICESINACTIVEMARKETSTHEIRFAIRVALUEISMEASUREDUSING
Responsibility Report
VALUATION TECHNIQUES INCLUDING THE DISCOUNTED CASH mOW $#&
MODEL BASED ON LEVEL
AND LEVEL
INPUTS 4HE INPUTS TO THESE
MODELS ARE TAKEN FROM OBSERVABLE MARKETS WHERE POSSIBLE BUT
Business
WHERE THIS IS NOT FEASIBLE A DEGREE OF JUDGEMENT IS REQUIRED IN
ESTABLISHING FAIR VALUES *UDGEMENTS INCLUDE CONSIDERATIONS OF
INPUTSSUCHASPRICEESTIMATESVOLUMEESTIMATESRATEESTIMATES
ETC#HANGESINASSUMPTIONSABOUTTHESEFACTORSCOULDAFFECTTHE Report on Corporate
REPORTEDFAIRVALUEOFlNANCIALINSTRUMENTS!LSOREFERNOTEFOR
FURTHERDISCLOSURESOFESTIMATESANDASSUMPTIONS
Governance
Consolidated financial
Statements
statements
Financial
322 Indian Oil Corporation Limited 2nd Integrated Annual Report
IN
PROGRESS
$ISPOSALS
$EDUCTIONS
4RANSFERS
2ECLASSIlCATIONS
*
Gross Block as at 3,086.05 416.49 13,595.54 1,30,031.21 1,472.79 77.91 632.11 164.17 1,252.32 6,759.03 1,57,487.62
March 31, 2019
(Refer C)
Depreciation & - 17.90 1,738.88 15,866.48 539.71 22.67 187.63 27.43 113.57 881.83 19,396.10
Amortisation as at
$%02%#)!4)/.!-/24)3!4)/.
April 1, 2018
$EPRECIATION
!MORTISATION
during the year
2EFER$
$ISPOSALS
$EDUCTIONS
4RANSFERS
2ECLASSIlCATIONS
*
Depreciation & - 14.17 2,364.45 22,680.44 746.29 28.37 256.01 35.43 161.28 1,261.44 27,547.88
Amortisation as at
March 31, 2019
Impairment Loss - - 14.76 50.88 - - - - 0.19 223.24 289.07
as at April 1,
2018
)-0!)2-%.4
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 2 : PROPERTY, PLANT AND EQUIPMENT (Contd...)
Chairman’s Desk
Previous Year
`IN#RORE
From the
Land - Land - Buildings, Plant And /FlCE Transport Furniture Railway Drainage, Producing Total
Freehold Leasehold Roads etc. Equipment Equipments Equipment & Sidings Sewage Properties
Fixtures And Water
Supply
System
About IndianOil
Gross Block as at April 2,066.17 217.28 10,547.41 1,07,153.89 794.68 60.52 447.43 104.79 993.27 4,766.31 1,27,151.75
1, 2017
Additions during the
year
'ROSS"LOCK
4RANSFERSFROM
CONSTRUCTIONWORK
IN
progress
Description of
$ISPOSALS
Capitals
$EDUCTIONS4RANSFERS
2ECLASSIlCATIONS*
Gross Block as at 2,974.06 293.26 11,789.83 1,19,403.38 1,089.23 69.25 550.90 142.36 1,139.26 5,221.06 1,42,672.59
March 31, 2018
Amortisation as at
April 1, 2017
Board of
$EPRECIATION
Amortisation during
the year
$ISPOSALS
$EDUCTIONS4RANSFERS
2ECLASSIlCATIONS*
Depreciation & - 17.90 1,738.88 15,866.48 539.71 22.67 187.63 27.43 113.57 881.83 19,396.10
Directors’
Amortisation as at
Report
March 31, 2018
Management’s
during the year
Responsibility Report
March 31, 2018
Net Block as at March 2,974.06 275.36 10,036.19 1,03,486.02 549.52 46.58 363.27 114.93 1,025.50 4,115.99 1,22,987.42
31, 2018
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
324 Indian Oil Corporation Limited 2nd Integrated Annual Report
Details of assets under lease included above (Other than Leasehold Land):
`IN#RORE
Asset Particulars Gross Block Accumulated Accumulated W.D.V. as at W.D.V. as at
Depreciation & Impairment March 31, March 31,
Amortisation Loss 2019 2018
Taken on Finance Lease
Buildings
8.96
0LANTAND%QUIPMENT
3,314.70
4RANSPORT%QUIPMENT
2.15
Given on Operating Lease
Buildings
0.89
0LANTAND%QUIPMENT
1.10
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 2 : PROPERTY, PLANT AND EQUIPMENT (Contd...)
Chairman’s Desk
Additions to Gross Block Includes:
`IN#RORE
From the
Asset Particulars Exchange Fluctuation Borrowing Cost
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Buildings 11.18 -
0LANTAND%QUIPMENT 534.62 114.36
About IndianOil
/FlCE%QUIPMENTS 0.07
-
$RAINAGE3EWAGE7ATER3UPPLY 24.90 -
TOTAL 570.77 173.44 114.36 327.60
Description of
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Capitals
Construction Work in Progress - Tangible Assets
)NCLUDINGUNALLOCATEDCAPITALEXPENDITUREMATERIALSATSITE
Board of
16,750.29 11,158.82
,ESS0ROVISIONFOR#APITAL,OSSES 35.97
16,714.32 11,125.65
Capital Stores
"ALANCEASATBEGINNINGOFTHEYEAR 2,696.72
Directors’
!DD!DDITIONSDURINGTHEYEAR 4,816.04
Report
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 2,773.60
4,739.16 2,696.72
Management’s
#APITAL'OODSIN4RANSIT 1,049.95
Responsibility Report
!DD.ETEXPENDITUREDURINGTHEYEAR.OTE
566.96
1,242.85 1,708.78
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 334.66
Business
908.19 675.89
TOTAL 23,401.01 15,085.32
!)NCLUDES#APITAL%XPENDITURERELATINGTOONGOING/IL'AS 236.72 Report on Corporate
%XPLORATION0RODUCTIONACTIVITIES
"3PECIlCBORROWINGELIGIBLEFORCAPITALISATION2ATE 5.75% to 8.58% TO
Governance
Consolidated financial
Statements
statements
Financial
326 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 3 : INTANGIBLE ASSETS
Chairman’s Desk
Current Year
`IN#RORE
From the
Right of Way Licenses Computer Software Total
Gross Block as at April 1, 2018 319.82 810.16 120.54 1,250.52
'ROSS"LOCK
About IndianOil
$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS*
Gross Block as at March 31, 2019 (Refer C) 613.18 2,479.53 196.75 3,289.46
Total Amortisation as at April 1, 2018 2.99 108.83 73.88 185.70
!-/24)3!4)/.!.$
)-0!)2-%.4
Description of
Total Impairment as at April 1, 2018 0.27 - 0.01 0.28
Capitals
Impairment Loss during the year
Impairment Loss reversed during the year
Total Impairment as at March 31, 2019 0.27 - 0.01 0.28
Previous Year
Board of
`IN#RORE
Right of Way Licenses Computer Software Total
Gross Block as at April 1, 2017 259.79 763.13 73.02 1,095.94
'ROSS"LOCK
Directors’
$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS*
Report
Gross Block as at March 31, 2018 319.82 810.16 120.54 1,250.52
Amortisation as at April 1, 2017 0.52 66.44 44.93 111.89
!-/24)3!4)/.!.$
)-0!)2-%.4
Management’s
Amortisation as at March 31, 2018 2.99 108.83 73.88 185.70
Impairment Losss as at April 1, 2017 0.27 - 0.01 0.28
Impairment Loss during the year
Impairment Loss reversed during the year
Responsibility Report
Impairment Loss as at March 31, 2018 0.27 - 0.01 0.28
Net Block as at March 31, 2018 316.56 701.33 46.65 1,064.54
Business
! !MORTISATIONFORTHEYEARINCLUDES`0.01 crore.), RELATINGTOCONSTRUCTIONPERIODEXPENSESTAKENTO.OTE
B. Additions to Gross Block includes:
.ET"LOCKOF)NTANGIBLEASSETSWITHINDElNITEUSEFULLIFE Report on Corporate
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 4 : INVESTMENTS
Chairman’s Desk
Particulars Investment Face Value/ March 31, 2019 March 31, 2018
Currency Paid up
From the
Number Carrying Number Carrying
Value Value Value
` (` in Crore) (` in Crore)
NON-CURRENT INVESTMENTS :
About IndianOil
A In Associates (Equity Method*):
QUOTED:
0ETRONET,.',IMITED Indian Rupees 187500000 1,278.82
5.15/4%$
!VI
/IL)NDIA0RIVATE,IMITED Indian Rupees 4500000 15.87
0ETRONET)NDIA,IMITED Indian Rupees 18000000 0.47
Description of
UNDERLIQUIDATION
Capitals
0ETRONET6+,IMITED Indian Rupees 50000000 0.02
Sub-total: (I)(A) 1,295.18 1,241.54
B In Joint Ventures (Equity Method*):
Board of
FORMERLYKNOWNAS)/4)NFRASTRUCTURE
%NERGY3ERVICES,IMITED
)NDIAN/IL0ANIPAT0OWER#ONSORTIUM Indian Rupees 840000 -
Limited
,UBRIZOL)NDIA0RIVATE,IMITED Indian Rupees 499200 154.09
Directors’
)NDIAN/IL0ETRONAS0RIVATE,IMITED Indian Rupees 134000000 605.74
Report
0ETRONET#),IMITEDUNDERLIQUIDATION Indian Rupees 3744000 -
'REEN'AS,IMITED Indian Rupees 23042250 104.69
Management’s
3UNTERA.IGERIA,IMITED .AIRARUPEES 1 2500000 -
$ELHI!VIATION&UEL&ACILITY0RIVATE,IMITED Indian Rupees 60680000 91.04
)NDIAN3YNTHETIC2UBBERS0RIVATE,IMITED Indian Rupees 222861375 105.21
.0#),
)NDIAN/IL.UCLEAR%NERGY Indian Rupees 260000 0.33
Responsibility Report
Corporation Limited
'30,)NDIA'ASNET,IMITED Indian Rupees 120125030 113.99
'30,)NDIA4RANSCO,IMITED Indian Rupees 99060000 100.65
Business
)NDIAN/IL!DANI'AS0RIVATE,IMITED Indian Rupees 185500000 178.43
-UMBAI!VIATION&UEL&ARM&ACILITY0RIVATE Indian Rupees 48288750 76.39
Limited Report on Corporate
+OCHI3ALEM0IPELINE0RIVATE,IMITED Indian Rupees 96250000 90.47
)NDIAN/IL,.'0RIVATE,IMITED Indian Rupees 5000 -
Governance
&UND UNDER)NSOLVENCY2ESOLUTION
Financial
0ROCESS
330 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 4 : INVESTMENTS (Contd...)
Chairman’s Desk
Particulars Investment Face Value/ March 31, 2019 March 31, 2018
Currency Paid up
From the
Number Carrying Number Carrying
Value Value Value
` (` in Crore) (` in Crore)
In Consumer Cooperative Societies:
About IndianOil
Baraunid Indian Rupees 250 -
'UWAHATI e
Indian Rupees 750 -
MathuraF Indian Rupees 200 -
Haldiag Indian Rupees 1663 -
In Indian Oil Cooperative Consumer Stores Indian Rupees 375 -
,IMITED$ELHIh
Description of
MRL Industrial Cooperative Service Society Indian Rupees 9000 0.01
Capitals
,TD
Sub-total: (I)(D) 20,191.09 22,015.48
Sub-total: (I)=[(I)(A)+(I)(B)+(I)(C)+(1)(D)] 32,084.49 33,063.99
Board of
loss
UNQUOTED:
3HAMA&ORGE#O,IMITEDIUNDERLIQUIDATION Indian Rupees 5000 -
#UMULATIVE2EDEEMABLE0REFERENCE
Shares
Directors’
Sub-total: (II) - -
Report
III In Government Securities
Investments at fair value through OCI
Management’s
Bonds
'OVT3TOCK Indian Rupees 1960000 2,141.31
'OVT3TOCK Indian Rupees 695000 706.13
Responsibility Report
Sub-total: (III) 2,847.44 3,266.47
IV In Debentures or Bonds
)NVESTMENTSIN*6ADJUSTEDFOREQUITY
Business
METHOD
Unquoted:
)NDIAN/IL,.'0VT,IMITED&ULLYAND Indian Rupees 6530 578.83 276.81 Report on Corporate
#OMPULSORILY#ONVERTIBLE$EBENTURES
Sub-total: (IV) 578.83 276.81
Governance
)NVESTMENT IN *OINT 6ENTURES!SSOCIATES HAVE BEEN SHOWN AS PER EQUITY METHOD OF CONSOLIDATION !CCORDINGLY CARRYING VALUE OF
INVESTMENTSHAVEBEENREDUCEDBYSHAREOFLOSSESANDWHEREVEROTHERLONGTERMINTERESTINTHEENTITYEXISTSUNADJUSTEDLOSSESIFANY
HAVEBEENSET
OFFAGAINSTSUCHINTEREST
`IN#RORE
Particulars March 31, 2019 March 31, 2018
!GGREGATECARRYINGVALUEOFQUOTEDINVESTMENTS 31,192.77
!GGREGATEMARKETVALUEOFQUOTEDINVESTMENTS 34,630.51
!GGREGATECARRYINGVALUEOFUNQUOTEDINVESTMENTS 12,734.89
!GGREGATEAMOUNTOFIMPAIRMENTINVALUEOFINVESTMENTS -
Note: A
Investment in Oil Marketing Companies GOI Special Bonds consists of:
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 4 : INVESTMENTS (Contd...)
Chairman’s Desk
Note: B - Other Disclosures
From the
$URINGTHEYEAR/IL-ARKETING#OMPANIESAND'/)SPECIAL"ONDSOFINVESTMENTVALUEOF`CROREAND`
CRORERESPECTIVELYARERECLASSIlEDFROMNON
CURRENTINVESTMENTSTOCURRENTINVESTMENT
/UTOF'OVERNMENT3ECURITIESCLASSIlEDASNON
CURRENTTHEFOLLOWINGAREPLEDGEDINFAVOUROF#LEARING#ORPORATIONOF)NDIA,TD
##), FOR,OANSTHROUGH4RI
PARTY2EPO3EGMENT42%03 OF##),
`IN#RORE
About IndianOil
Nature of Bonds March 31, 2019 March 31, 2018
Face Value Carrying Value Face Value Carrying Value
/IL-ARKETING#OMPANIES'/)3PECIAL"ONDS - -
'/6434/#+ 1,960.00 2,141.31
'/6434/#+ 695.00 706.13
Description of
/UTOF/IL-ARKETING#OMPANIES'/)3PECIAL"ONDSTHEFOLLOWINGHASBEENEARMARKEDINLINEWITHTHEREQUIREMENTOF#OMPANIES
Capitals
3HARE#APITALAND$EBENTURES 2ULES
`IN#RORE
Nature of Bonds March 31, 2019 March 31, 2018
Board of
&OLLOWINGARENOTREmECTINGABOVEDUETOROUNDINGOFF
!MOUNTIN`
Particulars March 31, 2019 March 31, 2018
a Investment Amount 6,916 -
b Investment Amount 10 10
Directors’
Report
c Investment Amount 100 100
d Investment Amount 2,500 2,500
Management’s
g Investment Amount 16,630 16,630
h Investment Amount 3,750 3,750
i Investment Amount 100 100
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
334 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 6 : OTHER FINANCIAL ASSETS (Unsecured, Considered Good at amortised cost unless otherwise stated)
`IN#RORE
Chairman’s Desk
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
From the
!DVANCESFOR)NVESTMENTS A 1,315.80 -
!MOUNT2ECOVERABLEFROM#ENTRAL -
19,120.96
3TATE'OVERNMENTS
&INANCE,EASE2ECEIVABLES 41.47 18.50
About IndianOil
$EPOSITSFOR,EAVE%NCASHMENT 76.63 -
&UND
Interest Accrued on Investments/ -
196.97
"ANK$EPOSITS,OANS
$ERIVATIVEINSTRUMENTSATFAIRVALUE -
35.56
THROUGHPROlTORLOSS
!DVANCETO%MPLOYEE"ENElTS4RUSTS 141.06 63.56
Description of
Receivables on Agency Sales -
-
Capitals
#LAIMS2ECOVERABLE
From Related Parties
5NSECURED#ONSIDERED -
22.61
Board of
5NSECURED#ONSIDERED'OOD -
34.61
5NSECURED#ONSIDERED -
7.03
$OUBTFUL
- - 41.64 31.01
,ESS0ROVISIONFOR$OUBTFUL -
29.64
Claims
Directors’
- - 34.61 24.51
Report
Others B 7.85 1,026.58
,ESS0ROVISIONFORDOUBTFULASSET -
6.21
Management’s
!!DVANCESFOREQUITYPENDING
allotment
"-AINLYINCLUDES
!MOUNTHELDWITHBANKFOR -
PURCHASEOFFOREIGNCURRENCY
Responsibility Report
FORVALUEDATE!PRIL
)NTERESTRECEIVABLESFROM!IR 544.03
India Limited
Business
Report on Corporate
NOTE - 7 : INCOME TAX/CURRENT TAX ASSET/(LIABILITY) - NET
`IN#RORE
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 9 : INVENTORIES
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
In Hand :
From the
2AW-ATERIALS 19,638.15
3TOCKIN0ROCESS 6,366.96
&INISHED0RODUCTS 25,015.10
3TOCKIN4RADE 8,144.61
About IndianOil
3TORES3PARESETC 4,219.20
,ESS0ROVISIONFOR,OSSES 205.69
4,013.51 3,289.50
"ARRELSAND4INS 74.84
63,253.17 59,136.21
In Transit :
Description of
2AW-ATERIALS 10,889.93
Capitals
&INISHED0RODUCTS 938.27
3TOCKIN4RADE 1,808.23
3TORES3PARESETC 236.88
Board of
!!MOUNTOFWRITEDOWNOFINVENTORIESCARRIEDAT.26ANDRECOGNISEDASEXPENSE 460.99
"!MOUNTOFREVERSALOFWRITEDOWNOFINVENTORIESRECOGNISEDASINCOME -
#6ALUATIONOFINVENTORIESAREDONEASPERPOINTNOOFSIGNIlCANTACCOUNTING
POLICIES.OTE
$&ORHYPOTHECATIONDETAILSREFER.OTE
Directors’
Report
NOTE - 10 : TRADE RECEIVABLES (At amortised cost)
`IN#RORE
March 31, 2018
Management’s
3ECURED#ONSIDERED'OOD -
5NSECURED#ONSIDERED'OOD 171.39
5NSECURED#ONSIDERED$OUBTFUL 0.62
172.01 92.07
Responsibility Report
From Others
3ECURED#ONSIDERED'OOD 149.65
5NSECURED#ONSIDERED'OOD 15,478.05
Business
5NSECURED#ONSIDERED$OUBTFUL 154.52
15,782.22 10,711.84
TOTAL 15,954.23 10,803.91 Report on Corporate
,ESS0ROVISIONFOR)MPAIRMENT 156.51
15,797.72 10,696.48
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 14 : EQUITY SHARE CAPITAL
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
From the
Authorized
%QUITY3HARESOF`EACH 15,000.00
Issued Subscribed and Paid Up:
9,414.16
About IndianOil
%QUITY3HARESOF`EACHFULLYPAIDUP
Less: Equity Shares held under IOC Shares Trust 233.12
%QUITY3HARESOF`EACHFULLYPAIDUP
TOTAL 9,181.04 9,478.69
Description of
A. Reconciliation of No. of Equity Shares
Capitals
Opening Balance 9711809928
3HARES)SSUED"ONUS3HARES -
3HARESBOUGHTBACK 297651006
Board of
4HE(OLDING#OMPANYHASONLYONECLASSOFEQUITYSHARESHAVINGPARVALUEOF`EACHANDISENTITLEDTOONEVOTEPERSHARE4HE
DIVIDENDPROPOSEDBYTHE"OARDOF$IRECTORSISSUBJECTTOTHEAPPROVALOFTHESHAREHOLDERSINTHEENSUING!NNUAL'ENERAL-EETING
)NTHEEVENTOFLIQUIDATIONOFTHECORPORATIONTHEHOLDERSOFEQUITYSHARESWILLBEENTITLEDTORECEIVETHEREMAININGASSETSOFTHE
#OMPANYINPROPORTIONTOTHENUMBEROFEQUITYSHARESHELD
Directors’
C. Details of shareholders holdings more than 5% shares
Report
Name of Shareholder March 31, 2019 March 31, 2018
Management’s
4(%02%3)$%.4/&).$)! 4912149459 52.18
/),!.$.!452!,'!3#/20/2!4)/.,)-)4%$ 1337215256 14.20
,)&%).352!.#%#/20/2!4)/./&).$)! 612921,292 6.51
/),).$)!,)-)4%$ 485590496 5.16
Responsibility Report
$ &ORTHEPERIODOFPRECEEDINGlVEYEARSASONTHE"ALANCE3HEETDATETHE
Business
A !GGREGATE NUMBER AND CLASS OF SHARES ALLOTTED AS FULLY PAID UP PURSUANT TO CONTRACTS WITHOUT PAYMENT .),
being received in cash
B !GGREGATENUMBEROFSHARESALLOTTEDASFULLYPAIDUPBYWAYOFBONUSSHARES
Report on Corporate
$URING&9
/CTOBER INRATIOOF
$URING&9
-ARCH INRATIOOF
Governance
C !GGREGATENUMBERANDCLASSOFSHARESBOUGHTBACK
4HE "OARD OF $IRECTORS OF THE #OMPANY AT ITS MEETING HELD ON $ECEMBER HAD APPROVED A PROPOSAL TO BUYBACK UPTO
4WENTY.INE#RORES3EVENTY3IX,AKHS&IFTY/NE4HOUSANDAND3IX EQUITYSHARESOFTHE#OMPANYFORANAGGREGATE
financial
PROCESSOFBUYBACKWASDULYCOMPLETEDON&EBRUARY
Statements
statements
Financial
340 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 15 : OTHER EQUITY (Contd...)
`IN#RORE
Chairman’s Desk
Particulars March 31, 2019 March 31, 2018
Securities Premium
From the
As per last Account 76.74
Addition during the year -
76.74 76.74
Insurance Reserve
About IndianOil
As per last Account 223.48
!DD!PPROPRIATIONFROM3URPLUS 17.61
241.09 223.48
%XPORT0ROlT2ESERVE 53.72
Description of
As per Last Account 0.78
Capitals
!DD!PPROPRIATIONFROM3URPLUS 509.55
,ESS5TILIZEDDURINGTHEYEAR 509.51
0.82 0.78
Board of
!DD&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS (138.40)
,ESS!MORTIZEDDURINGTHEYEAR (148.39)
(35.78) (45.77)
Fair Value Through Other Comprehensive Income :
Fair value of Equity Instruments
As per Last Account 18,678.23
Directors’
Report
!DD&AIRVALUEDURINGTHEYEAR (2,461.05)
,ESS4RANSFERREDTO'ENERAL2ESERVE -
16,217.18 18,678.23
Management’s
As per Last Account (149.41)
!DD&AIRVALUEDURINGTHEYEAR 105.46
,ESS4RANSFERREDTOSTATEMENTOFPROlTANDLOSS -
(43.95) (149.41)
Responsibility Report
Cash Flow Hedge Reserve
As per Last Account -
!DD&AIRVALUEDURINGTHEYEAR 15.68
Business
,ESS4RANSFERREDDURINGTHEYEAR (6.36)
22.04 -
Translation Reserve on Consolidation Report on Corporate
As per last Account 276.56
!DD4RANSLATIONDIFFERENCE (278.18)
Governance
(1.62) 276.56
TOTAL 1,03,288.20 1,04,395.13
Consolidated financial
Statements
statements
Financial
342 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 16 : LONG TERM BORROWINGS (At Amortised Cost)
`IN#RORE
Chairman’s Desk
Particulars Non Current Current Maturities*
From the
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
SECURED LOANS
Bonds:
.ON
#ONVERTIBLE2EDEEMABLE !" -
-
About IndianOil
"ONDS
3ERIES
6)))"
.ON#ONVERTIBLE$EBENTURES C -
-
Term Loans: $
From Banks 846.18
3.57
&ROM/IL)NDUSTRY$EVELOPMENT 226.84 282.81
Description of
"OARD/)$"
Capitals
1,073.02 458.39 286.38 425.81
&INANCE,EASE/BLIGATIONS E 3,309.74 201.06
Board of
UNSECURED LOANS
Bonds:
&OREIGN#URRENCY"ONDS & 15,159.33 188.96
3ENIOR.OTES"ANKOF!MERICA '" -
-
15,159.33 8,502.93 188.96 775.36
Directors’
Report
Term Loans:
From Banks/Financial
Management’s
From Government
In Rupees I 707.33 -
19,610.36 10,645.31 3,376.90 6.15
Responsibility Report
Total Unsecured Loans 34,769.69 19,148.24 3,565.86 781.51
TOTAL LONG-TERM 39,152.45 23,060.51 4,053.30 3,508.77
Business
BORROWINGS
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 16 : LONG TERM BORROWINGS (At Amortised Cost) (Contd...)
Chairman’s Desk
Sl. Particulars Allotment Coupon Rate Date of Redemption Security Details
No. Date
From the
3 &OREIGN $ECEMBER -ONTHS,)"/2 0RINCIPALREPAYABLE 0ARI PASSU lRST CHARGE ON ENTIRE lXED
Currency "PSFORlRST ATTHEENDOFYEARS ASSETSOFTHE#OMPANYEXCLUDING,ANDAND
4ERM,OAN months FROM$ECEMBER BUILDINGASSETSPERTAININGTO"36)PROJECT
FROM3OUTH -ONTHS,)"/2 BEINGDATEOF AND 2
,.' PROJECTS WITH A MINIMUM
)NDIAN"ANK "PSFORNEXT availment &IXED !SSET #OVERAGE 2ATIO OF TIMES
About IndianOil
months and Second pari passu charge on movable
2ESETATHALFYEARLY ASSETSOF"36)PROJECTAND2
,.'PROJECT
intervels TOBEFURNISHED
)NTERESTPAYABLEON
monthly basis
E. Finance Lease Obligations
Description of
4HE&INANACE,EASE/BLIGATIONSAREAGAINST!SSETSAQUIREDUNDERlNANCELEASE4HECARRYINGVALUEOFTHESAMEIS`3,387.63 crores
Capitals
`CRORE
5NSECURED,OANS
Board of
2 53$MILLION2EG3BONDS !UGUST 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
3 3'$MILLION2EG3BONDS /CTOBER /NTHESAMEDAYCROSSCURRENCYSWAPAMOUNTINGTO53$
-ILLION0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
4 53$-ILLION2EG3BONDS !UGUST 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
G. Repayment Schedule of Senior Notes (Bank of America)
53$-ILLION530RIVATE0LACEMENTBONDSISSUEDINFOURTRANCHESOF53$-ILLIONDT*UNE*ULY!UGUST
Directors’
Report
AND3EPTEMBERAREPAYABLEINTHREETRANCHESOF53$-ILLIONEACHON!UGUST!UGUST
AND!UGUST
Management’s
Sl. No. Particulars of Loans Date of drawal Date of Repayment
1 53$-ILLION3YNDICATION,OAN -ARCH
2 53$-ILLION3YNDICATION,OAN -ARCH
3 53$-ILLION3YNDICATION,OAN &EBRUARY
Responsibility Report
4 53$-ILLION3YNDICATION,OAN $ECEMBER
53$-ILLION3YNDICATION,OAN $ECEMBER
53$-ILLION3YNDICATION,OAN $ECEMBER
Business
53$-ILLION3YNDICATION,OAN $ECEMBER 0AYABLEAFTERYEARSFROM
8 53$-ILLION3YNDICATION,OAN $ECEMBER THEDATEOFDRAWAL
Report on Corporate
53$-ILLION3YNDICATION,OAN $ECEMBER
53$-ILLION3YNDICATION,OAN $ECEMBER
Governance
-ILLIONREPAIDON3EPTEMBER
Consolidated
Statements
statements
Financial
346 Indian Oil Corporation Limited 2nd Integrated Annual Report
NOTE - 17 : OTHER FINANCIAL LIABILITIES (At Amortised Cost unless otherwise stated)
`IN#RORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
#URRENTMATURITIESOFLONG
TERMDEBT -
4,053.30
2EFER.OTE
Interest accrued but not due on -
-
BORROWINGS
,IABILITYFOR#APITAL%XPENDITURE -
5,452.79
,IABILITYTO4RUSTSAND/THER&UNDS -
245.96
Employee Liabilities -
3,465.10
)NVESTOR%DUCATION0ROTECTION&UNDTO
BECREDITEDONTHEDUEDATES
5NPAID$IVIDEND -
40.62
5NPAID-ATURED$EPOSITS -
0.01
- - 40.63 19.18
$ERIVATIVE INSTRUMENTS AT FAIR VALUE -
258.40
THROUGHPROlTANDLOSS
3ECURITY$EPOSITS 615.20 27,162.01
,IABILITYFOR$IVIDEND -
3.93
Others 0.83 2,633.92
TOTAL 616.03 533.47 43,316.04 37,937.98
60th Annual Report 2018-19 347
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 18 : PROVISIONS
`IN#RORE
Chairman’s Desk
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
From the
0ROVISIONFOR%MPLOYEE 1,134.11 147.20
"ENElTSREFER.OTE
$ECOMMISSIONING,IABILITY A 1,077.88 -
#ONTINGENCIESFORPROBABLE B -
11,538.50
About IndianOil
obligations
,ESS$EPOSITS -
1,511.65
- - 10,026.85 13,879.62
/THER0ROVISIONS -
-
TOTAL 2,211.99 2,422.65 10,174.05 14,249.43
Description of
A. In compliance of Ind AS 37 - “Provisions, Contingent Liabilities and Contingent Assets”, the required information is as under :
Capitals
`IN#RORE
Particulars Opening Addition Utilization Reversals Unwinding of discount Closing
Balance during the during the during the and changes in the Balance
Board of
TOTAL 169.43 887.36 - 12.67 33.76 1,077.88
0REVIOUS9EAR4OTAL
B. In compliance of Ind AS 37 - “Provisions, Contingent Liabilities and Contingent Assets”, the required information is as under :
`IN#RORE
Directors’
Report
Particulars Opening Addition during Utilization Reversals during Closing
Balance the year during the year the year Balance*
%XCISE
Management’s
%NTRY4AX
Others
TOTAL 32,406.83 1,479.02 20,838.18 1,509.17 11,538.50
0REVIOUS9EAR4OTAL
Responsibility Report
Addition includes Reversal includes
CAPITALIZED
Business
INCLUDEDIN2AW-ATERIAL
INCLUDEDIN&INANCE#OST
INCLUDEDIN/THER%XPENSES Report on Corporate
!DJUSTEDAGAINST$EPOSITS0AID
%XPECTEDTIMINGOFOUTmOWISNOTASCERTAINABLEATTHISSTAGETHEMATTERSBEINGUNDERDISPUTECONTINGENT
Governance
Consolidated financial
Statements
statements
Financial
348 Indian Oil Corporation Limited 2nd Integrated Annual Report
)NCLUDESTRANSLATIONRESERVEOF`CROREDUETOTRANSLATIONOF/PENING"ALANCEAT#LOSING%XCHANGE2ATE
(ii) Reconciliation between the average effective tax rate and the applicable tax rate is as below :
2018-19 (%) 2017-18 (%)
Applicable tax rate 34.944
4AXEFFECTOFINCOMETHATARENOTTAXABLEINDETERMININGTAXABLEPROlT (2.83)
4AXEFFECTOFEXPENSESTHATARENOTDEDUCTIBLEINDETERMININGTAXABLEPROlT 1.08
4AXEFFECTONRECOGNITIONOFPREVIOUSLYUNRECOGNISEDALLOWANCEDISALLOWANCES 1.57
4AXEFFECTOFEXPENSESONSHAREBUYBACKTHROUGH%QUITY 0.02
4AXEXPENSESINCOMERELATEDTOPRIORYEARS (1.84)
$IFFERENCEINTAXDUETOINCOMECHARGEABLETOTAXATSPECIALRATES (0.04)
4AXIMPACTONSHAREOFPROlTOF*6S!SSOCIATESADDEDNETOFTAXIN0"4OF'ROUP (0.11)
4AXEFFECTOFDIFFERENTOR.),TAXRATESOF'ROUP#OMPANIES (0.90)
%FFECTOF4AXESINFOREIGNJURISDICTION 1.55
$IFFERENCEDUETOCHANGEIN2ATEOF4AX (0.04)
Others (0.03)
Average Effective Tax Rate 33.37 34.32
60th Annual Report 2018-19 349
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 20 : OTHER LIABILITIES (NON FINANCIAL)
`IN#RORE
Chairman’s Desk
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
From the
$EFERRED)NCOME 5.57 1.81
'OVERNMENT'RANTS2EFER.OTE 1,570.27 120.57
Statutory Liabilities -
7,681.39
!DVANCESFROM#USTOMERS 23.61
3,799.28
About IndianOil
Others -
872.33
TOTAL 1,599.45 1,361.21 12,475.38 12,054.93
Description of
Particulars March 31, 2019 March 31, 2018
Capitals
SECURED LOANS
Loans Repayable on Demand
From Banks: A
Board of
&OREIGN#URRENCY,OANS -
8,145.71 8,557.11
From Others:
,OANSTHROUGH4RI
0ARTY2EPO3EGMENT42%03 OF#LEARING B 2,587.53
#ORPORATIONOF)NDIA,TD##),
Directors’
Other Loans A 1,783.98
Report
Total Secured Loans 12,517.22 11,192.12
UNSECURED LOANS
Management’s
From Banks/Financial Institutions
)N&OREIGN#URRENCY 14,157.68
In Rupee 3,466.88
17,624.56 24,889.21
Responsibility Report
From Others
#OMMERCIAL0APERS 23,417.51
23,417.51 2,999.65
Business
Total Unsecured Loans 41,042.07 27,888.86
TOTAL SHORT-TERM BORROWINGS 53,559.29 39,080.98
! !GAINST HYPOTHECATION BY WAY OF lRST PARI PASSU CHARGE ON 2AW -ATERIALS &INISHED 'OODS 3TOCK
IN 4RADE 3UNDRY $EBTORS Report on Corporate
/UTSTANDINGMONIES2ECEIVABLES#LAIMS#ONTRACTS%NGAGEMENTSTO3")AND($&#"ANKS
" !GAINSTPLEDGINGOFFOLLOWINGTO##),
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 24 : OTHER INCOME
`IN#RORE
Chairman’s Desk
Particulars 2018-19 2017-18
From the
Interest on: A
&INANCIALITEMS
$EPOSITSWITH"ANKS 44.47
Customers Outstandings 433.26
About IndianOil
/IL#OMPANIES'/)30,"ONDS/THER)NVESTMENT 907.41
/THER&INANCIAL)TEMS 261.79
4OTALINTERESTON&INANCIALITEMS 1,646.93 1,783.26
.ON
&INANCIALITEMS 99.34
Description of
1,746.27 1,827.52
Dividend: B
Capitals
&ROM2ELATED0ARTIES -
&ROM/THER#OMPANIES 863.30
Board of
&AIRVALUE'AINON)NVESTMENT0ROVISION7RITTEN"ACK.ET 1.60
%XCHANGE&LUCTUATIONS.ET -
'AINON$ERIVATIVES 0.32
&AIRVALUE'AINON&INANCIALINSTRUMENTSCLASSIlEDAS&640, 13.87
Directors’
/THER.ON/PERATING)NCOME 88.92
Report
TOTAL 2,714.28 3,419.88
Management’s
!)NCLUDESINTERESTRECEIVEDUNDERSECTION!OFTHE)NCOME4AX!CT 90.14
!)NCLUDEINTERESTON
Current Investments 657.36
Responsibility Report
.ON
#URRENT)NVESTMENTS 250.05
!4OTAL INTEREST INCOME CALCULATED USING THE EFFECTIVE INTEREST METHOD FOR
lNANCIALASSETS
Business
)NRELATIONTO&INANCIALASSETSCLASSIlEDATAMORTISEDCOST 739.52
)NRELATIONTO&INANCIALASSETSCLASSIlEDAT&6/#) 907.41 Report on Corporate
"$IVIDEND)NCOMECONSISTSOF$IVIDENDON
Current Investments 17.44
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 28 : FINANCE COSTS
`IN#RORE
Chairman’s Desk
Particulars 2018-19 2017-18
Interest Payments on Financial items:
From the
Working Capital Loans:
"ANK"ORROWINGS 1,035.21
"ONDS$EBENTURES 65.77
Others 472.98
About IndianOil
1,573.96 472.88
Other Loans:
"ANK"ORROWINGS 801.07
"ONDS$EBENTURES 645.04
Others 462.72
1,908.83 1,770.38
5NWINDINGOF$ISCOUNT 44.85
Description of
Others 17.43
Capitals
3,545.07 2,381.63
Interest Payments on Non Financial items:
5NWINDINGOF$ISCOUNT 17.11
Board of
/THER"ORROWING#OST 38.81
!PPLICABLE.ET'AIN ,OSSON&OREIGN#URRENCY4RANSACTIONSAND4RANSLATION 837.20
TOTAL 4,887.98 3,844.78
4OTAL INTEREST EXPENSE CALCULATED USING THE EFFECTIVE INTEREST METHOD FOR lNANCIAL 3,545.07
LIABILITIESTHATARENOTATFAIRVALUETHROUGHPROlTORLOSS
Directors’
Report
NOTE - 29 : OTHER EXPENSES
`IN#RORE
Management’s
A 3TORES3PARESAND#ONSUMABLES 1,750.20
B 0ACKAGES$RUM3HEETS 513.76
2,263.96 1,979.09
0OWER&UEL 30,042.33
Responsibility Report
,ESS&UELFROMOWNPRODUCTION 23,688.77
6,353.56 4,830.97
4HROUGHPUT0ROCESSING"LENDING&EES2OYALTYAND/THER#HARGES 1,600.92
Business
/CTROI/THER,EVIESAND)RRECOVERABLETAXES 1,885.18
Repairs and Maintenance
I 0LANT%QUIPMENT 3,295.78
Report on Corporate
II "UILDINGS 362.26
III /THERS 546.99
4,205.03 3,860.09
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 30 : OTHER COMPREHENSIVE INCOME
`IN#RORE
Chairman’s Desk
Particulars 2018-19 2017-18
From the
)TEMSTHATWILLNOTBERECLASSIlEDTOPROlTANDLOSS
2EMEASUREMENTOF$ElNED"ENElT0LANS (66.65)
&AIRVALUEOF%QUITY)NSTRUMENTS (1,976.37)
3HAREOF*OINT6ENTURESANDASSOCIATESIN2EMEASUREMENTOF$ElNED"ENElT0LANS (1.09)
About IndianOil
(2,044.11) 64.43
)NCOME4AXRELATINGTOITEMSTHATWILLNOTBERECLASSIlEDTOPROlTANDLOSS
2EMEASUREMENTOF$ElNED"ENElT0LANS 23.29
&AIRVALUEOF%QUITY)NSTRUMENTS (486.01)
3HAREOF*OINT6ENTURESANDASSOCIATESIN2EMEASUREMENTOF$ElNED"ENElT0LANS 0.50
Description of
(462.22) 355.21
Capitals
)TEMSTHATWILLBERECLASSIlEDTOPROlTANDLOSS
&AIRVALUEOF$EBT)NSTRUMENTS 131.13
Board of
3HAREOF*OINT6ENTURESANDASSOCIATESIN'AINON"USINESS#OMBINATIONS 6.75
(120.96) 455.55
)NCOME4AXRELATINGTOITEMSTHATWILLBERECLASSIlEDTOPROlTANDLOSS
&AIRVALUEOF$EBT)NSTRUMENTS (25.67)
Directors’
'AIN,OSS ON(EDGING)NSTRUMENTS (8.44)
Report
(34.11) 62.97
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
356 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 32 : EARNINGS PER SHARE (EPS)
Chairman’s Desk
"ASICAND$ILUTED%03AMOUNTSARECALCULATEDBYDIVIDINGTHEPROlTFORTHEYEARATTRIBUTABLETOEQUITYHOLDERSBYTHEWEIGHTEDAVERAGE
NUMBEROF%QUITY3HARESOUTSTANDINGDURINGTHEYEAR
From the
4HEFOLLOWINGREmECTSTHEPROlTANDNUMBEROFSHARESUSEDINTHEBASICANDDILUTED%03COMPUTATIONS
`IN#RORE
Particulars 2018-19 2017-18
About IndianOil
0ROlTATTRIBUTABLETOEQUITYHOLDERS`IN#RORE 17,376.70
7EIGHTED !VERAGE NUMBER OF EQUITY SHARES USED FOR COMPUTING %ARNING 0ER 3HARE "ASIC 9441179290
2EFERNOTE
AND
7EIGHTED !VERAGE NUMBER OF EQUITY SHARES USED FOR COMPUTING %ARNING 0ER 3HARE $ILUTED 9441179290
2EFERNOTE
AND
Description of
%ARNING0ER3HARE"ASIC ` 18.41
Capitals
%ARNING0ER3HARE$ILUTED ` 18.41
&ACEVALUEPERSHARE` 10.00
Board of
4HE"OARDOF$IRECTORSOFTHE'ROUPATITSMEETINGHELDON$ECEMBERHADAPPROVEDAPROPOSALTOBUYBACKUPTO
4WENTY.INE#RORES3EVENTY3IX,AKHS&IFTY/NE4HOUSANDAND3IX %QUITY3HARESOFTHE'ROUP4HE'ROUPBOUGHTBACK
4WENTY.INE#RORES3EVENTY3IX,AKH&IFTY/NE4HOUSANDAND3IX %QUITY3HARESOUTOFTHESHARESTHATWERETENDEREDBYELIGIBLE
SHAREHOLDERSANDTHESHARESBOUGHTBACKWERECANCELLEDANDEXTINGUISHEDON&EBRUARY!CCORDINGLYEARNINGSPERSHARE
%03 BASICANDDILUTED FOR&9
HAVEBEENADJUSTEDONACCOUNTOFBUYBACK
Directors’
Report
Discussion & Analysis
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
358 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 33A : GROUP INFORMATION AND MATERIAL PARTLY-OWNED SUBSIDIARIES (Contd...)
Chairman’s Desk
4HE SUMMARISED lNANCIAL INFORMATION OF THESE SUBSIDIARIES ARE PROVIDED BELOW 4HIS INFORMATION IS BASED ON AMOUNTS BEFORE INTER
COMPANYELIMINATIONS
From the
1. Summarised Balance Sheet:
`IN#RORE
Chennai Petroleum Corporation Limited Lanka IOC PLC
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
About IndianOil
Current assets 6,849.52 731.44
Current liabilities 10,121.90 347.41
.ON
CURRENTASSETS 8,549.21 478.15
.ON
CURRENTLIABILITIES 1,820.29 0.26
Net assets 3,456.54 3,996.99 861.92 917.57
!CCUMULATED.ON
#ONTROLLING)NTERESTS 1,662.91 1,922.93 214.45 228.29
Description of
Capitals
3UMMARISED3TATEMENTOF0ROlTAND,OSS
`IN#RORE
Chennai Petroleum Corporation Limited Lanka IOC PLC
Board of
#OSTOF-ATERIAL#ONSUMED 38,468.11 -
%XCISE$UTY 10,862.83 -
0URCHASESOF3TOCKINTRADE 1,139.51 3,577.28
#HANGES IN INVENTORIES OF lNISHED GOODS STOCK
IN
(409.89) (128.88)
TRADEANDWORKINPROGRESS
%MPLOYEE"ENElTS%XPENSE 460.52 24.38
Directors’
Report
&INANCE#OSTS 419.76 40.32
$EPRECIATIONANDAMORTIZATIONEXPENSE 452.53 17.58
Impairment Losses 0.93 -
Management’s
0ROlTBEFOREEXCEPTIONALITEMSANDTAX (303.97) (18.88)
3HAREOF0ROlTOF*OINT6ENTURES!SSOCIATES 13.96 -
0ROlTLOSS BEFORETAX (290.01) (18.88)
4AXEXPENSE (84.66) (2.59)
0ROlT,OSS FORTHEPERIOD (205.35) (16.29)
Responsibility Report
Other Comprehensive Income (1.78) (24.53)
4OTALCOMPREHENSIVEINCOME (207.13) (40.82)
Business
0ROlT!TTRIBUTABLETO.ON
#ONTROLLING)NTERESTS (98.80) (4.05)
$IVIDENDSPAIDTO.ON
#ONTROLLING)NTERESTS 132.54 3.68
Report on Corporate
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 33 B : INTEREST IN JOINT VENTURE & ASSOCIATES (Contd...)
Chairman’s Desk
B. Summarised Financials of Material Joint Venture:
I.A. Summarised Balance Sheet of M/s Indian Oiltanking Limited:
From the
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Current assets 998.88
Current liabilities 720.32
About IndianOil
.ON
CURRENTASSETS 3,196.78
.ON
CURRENTLIABILITIES 2,340.26
Net assets 1,135.08 1,011.78
Proportion of the Group’s ownership 560.55 499.65
Carrying amount of the investment 561.41 500.53
4HEABOVEAMOUNTSOFASSETSANDLIABILITIESINCLUDETHEFOLLOWINGS
Description of
Cash and cash equivalents 57.15
Capitals
#URRENT&INANCIAL,IABILITIES 563.57
.ON
CURRENTlNANCIALLIABILITIES 2,268.73
Board of
2EVENUE&ROM/PERATIONS 598.62
Other Income 72.31
Revenue From Operations 670.93 735.91
#OSTOF-ATERIAL3ERVICE#ONSUMED 29.45
%MPLOYEE"ENElTS%XPENSE 48.21
&INANCE#OSTS 235.54
Directors’
$EPRECIATIONANDAMORTIZATIONEXPENSE 29.73
Report
/THER%XPENSES 224.85
0ROlTLOSS "EFORETAX 103.15 148.80
Management’s
$EFERRED4AX (29.73)
0ROlT,OSS FORTHEYEAR 130.66 156.41
Other Comprehensive Income 15.63
Total Comprehensive Income 146.29 90.74
Group's Share in above:
Responsibility Report
0ROlT,OSS FORTHEPERIOD 64.53
Other Comprehensive Income 7.79
4OTAL#OMPREHENSIVE)NCOME 72.32
Business
$IVIDENDRECEIVED 9.90
II.A. Summarised Balance Sheet of M/s Indian Oil Petronas Private Limited: Report on Corporate
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Governance
))"3UMMARISED3TATEMENTOF0ROlTAND,OSSOF-S)NDIAN/IL0ETRONAS0RIVATE,IMITED
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Revenue From Operations 1,884.28 1,405.58
Other Income 46.54
Revenue From Operations 1,930.82 1,425.92
#OSTOF-ATERIAL3ERVICE#ONSUMED 1,301.77
%MPLOYEE"ENElTS%XPENSE 14.50
&INANCE#OSTS 11.73
$EPRECIATIONANDAMORTIZATIONEXPENSE 40.58
/THER%XPENSES 165.71
0ROlTLOSS "EFORETAX 396.53 381.18
Tax expense:
#URRENT4AX 135.02
$EFERRED4AX 4.89
0ROlT,OSS FORTHEYEAR 256.62 247.17
Other Comprehensive Income (0.02)
Total Comprehensive Income 256.60 247.11
Group's Share in above:
0ROlT,OSS FORTHEPERIOD 128.31
Other Comprehensive Income (0.01)
4OTAL#OMPREHENSIVE)NCOME 128.30
$IVIDENDRECEIVED 26.80
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 33 B : INTEREST IN JOINT VENTURE & ASSOCIATES (Contd...)
Chairman’s Desk
))3UMMARISED3TATEMENTOF0ROlTAND,OSSOF-S0ETRONET,.',IMITED
`IN#RORE
From the
Particulars March 31, 2019 March 31, 2018
2EVENUE&ROM/PERATIONS 38,395.43
Other Income 445.79
Revenue From Operations 38,841.22 30,916.02
About IndianOil
#OSTOF-ATERIAL3ERVICE#ONSUMED 34,416.95
%MPLOYEE"ENElTS%XPENSE 125.87
&INANCE#OSTS 98.92
$EPRECIATIONANDAMORTIZATIONEXPENSE 411.24
/THER%XPENSES 479.53
0ROlTLOSS "EFORETAX 3,308.71 3,087.70
Description of
Tax expense:
Capitals
#URRENT4AX 789.49
$EFERRED4AX 288.66
0ROlT,OSS FORTHEYEAR 2,230.56 2,110.44
Board of
0ROlT,OSS FORTHEPERIOD 278.82
Other Comprehensive Income (0.25)
4OTAL#OMPREHENSIVE)NCOME 278.57
$IVIDENDRECEIVED 187.50
Directors’
Report
C. Details in respect of Immaterial Joint Venture & Associates:
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Management’s
*OINT6ENTURES 2,159.47
Associates 16.36
Aggregate amounts of the group’s share of immaterial Joint Ventures:
3HAREOF0ROlTS!FTER4AX 111.26
Responsibility Report
Other Comprehensive income (7.46)
4OTAL#OMPREHENSIVEINCOME 103.80
Aggregate amounts of the group’s share of immaterial Associates:
Business
3HAREOF0ROlTS!FTER4AX 2.10
Other Comprehensive income (0.06)
4OTAL#OMPREHENSIVEINCOME 2.04
Report on Corporate
D. Group’s share in Capital Commitments and Contingent Liabilities in respect of Joint Venture & Associates is as under:
Governance
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Capital Commitments 5,565.25
financial
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 34 : INTEREST IN JOINT OPERATIONS (Contd...)
Chairman’s Desk
B. The Group share of Financial position of above Joint Operations is as under:
`IN#RORE
From the
Particulars March 31, 2019 March 31, 2018
Assets 10,667.16 8,337.67
00%INCLUDING0RODUCING0ROPERTIES 5,385.55
#APITAL7ORKIN0ROGRESS 121.60
About IndianOil
)NTANGIBLE!SSETUNDER$EVELOPMENT.ETOF0ROVISIONS 3,601.81
/THER!SSETS.ETOF0ROVISIONS 1,558.20
Liabilities & Provisions 3,864.54 2,434.49
Liabilities 2,786.67
0ROVISIONS 1,077.87
Incomes 2,356.72 740.93
Description of
3ALEOF0RODUCTS.ETOF/WN#ONSUMPTION 2,346.22
Capitals
Other Income 10.50
Expenditure 2,156.17 578.72
Board of
Contingent Liabilities - -
Directors’
activity associated with the exploration for and evaluation of mineral resources (crude oil, natural gas etc.) is as under:
Report
`IN#RORE
Name March 31, 2019 March 31, 2018
Management’s
0ROPERTY0LANTAND%QUIPMENT -
)NTANGIBLE!SSETS -
)NTANGIBLE!SSETSUNDER$EVELOPMENT 239.27
#APITAL7ORKIN0ROGRESS 0.79
Responsibility Report
/THER!SSETS 2.67
(ii) Liabilities 115.70 98.58
4RADE0AYABLES -
Business
0ROVISIONS 2.31
/THER,IABILITIES 113.39
(iii) Income - 0.39 Report on Corporate
/THER)NCOME -
(iv) Expenses 71.56 39.74
Governance
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 35 : DISCLOSURE RELATING EXPLORATION AND PRODUCTION ACTIVITIES (Contd...)
Chairman’s Desk
.ET0ROVED2ESERVES0ROVEDDEVELOPED2ESERVESOF#RUDE/IL#ONDENSATE.ATURAL'AS,IQUIDSAND'ASON'EOGRAPHICAL"ASIS
Details March 31, 2019 March 31, 2018
From the
Crude Oil, Condensate, NGLs Natural Gas Crude Oil, Condensate, NGLs Natural Gas
TMT Million Cubic Meter TMT Million Cubic Meter
A) Proved Reserves
About IndianOil
53 245.25 72.32
Canada 987.97 8300.64
Oman 7978.65 -
India 69.46 1621.05
Total Proved Reserves 9281.33 9994.01 836.79 9898.09
Description of
Capitals
B) Proved developed
Reserves
Board of
Oman 7348.41 -
India 69.46 1621.05
Total Proved developed 7675.82 4461.00 350.01 4771.31
Reserves
Frequency
Directors’
4HE'ROUPUSESINHOUSESTUDYASWELLASTHIRDPARTYAGENCYEACHYEARFORRESERVESCERTIlCATIONWHOADAPTLATESTINDUSTRYPRACTICESFOR
Report
RESERVEEVALUATION&ORTHEPURPOSEOFESTIMATIONOF0ROVEDAND0ROVEDDEVELOPEDRESERVESDETERMINISTICMETHODISUSEDBYTHECOMPANY
4HEANNUALREVISIONOFESTIMATESISBASEDONTHEYEARLYEXPLORATORYANDDEVELOPMENTACTIVITIESANDRESULTSTHEREOF
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 36 : EMPLOYEE BENEFITS (Contd...)
Chairman’s Desk
# /THER,ONG
4ERM%MPLOYEE"ENElTS
'ENERAL$ESCRIPTION
From the
Leave Encashment:
%ACHEMPLOYEEISENTITLEDTOGETEARNEDLEAVESFOREACHCOMPLETEDQUARTEROFSERVICE%NCASHMENTOFEARNEDLEAVESISALLOWED
DURINGSERVICELEAVINGAMINIMUMBALANCEOFDAYSSUBJECTTOMAXIMUMACCUMULATIONOFDAYS)NADDITIONEACHEMPLOYEEIS
ENTITLEDTOGETSICKLEAVESINLIEUOF(0, ATTHEENDOFEVERYSIXMONTHS4HEENTIREACCUMULATIONISPERMITTEDFORENCASHMENT
ONLYATTHETIMEOFRETIREMENT$0%HADCLARIlEDTHATSICKLEAVECANNOTBEENCASHEDTHOUGH%ARNED,EAVE%, AND(ALF0AY,EAVE
About IndianOil
(0, COULDBECONSIDEREDFORENCASHMENTONRETIREMENTSUBJECTTOTHEOVERALLLIMITOFDAYS-/0.'HASADVISEDTHECOMPANY
TOCOMPLYWITHTHE$0%'UIDELINES(OWEVERKEEPINGINVIEWOPERATIONALCOMPLICATIONSANDSERVICEAGREEMENTSTHECOMPANYHAS
CONTINUEDWITHTHEPRESENTPRACTICEANDREQUESTEDCONCERNEDAUTHORITIESTORECONSIDERTHEMATTER
Long Service Award:
/NCOMPLETIONOFSPECIlEDPERIODOFSERVICEWITHTHECOMPANYANDALSOATTHETIMEOFRETIREMENTEMPLOYEESAREREWARDEDWITH
Description of
AMOUNTSBASEDONTHEDURATIONOFSERVICECOMPLETED-/0.'VIDEITSLETTERDATEDHASINTIMATEDTHATTHESCHEME
ISNOTFORMINGPARTOF$0%GUIDELINESASOFNOWANDTHUSISIRREGULARANDHASADVISEDTOMAKERECOVERYOFPAYMENTSMADE)/#,
Capitals
HAS CLARIlED ITS POSITION TO -/0.' VIDE ITS LETTER DATED AND STATING THAT AWARD BASED ON LENGTH OF
MERITORIOUSANDFAITHFULSERVICEOFEMPLOYEES,ONG3ERVICE!WARD WASSPECIlCALLYALLOWEDBY$0%FORMERLY"0% THRUITSLETTER
DATED 4HE MATTER IS BEING PURSUED WITH -/0.' FOR RESOLUTION 0ENDING THIS THE PROVISION IS IN LINE WITH "OARD
Board of
Leave Fare Allowance (LFA)/Leave Travel Concession (LTC):
,4#ISALLOWEDONCEINAPERIODOFTWOCALENDARYEARSVIZTWOYEARLYBLOCK !NEMPLOYEEHASINANYGIVENBLOCKPERIODOFTWOYEARS
ANOPTIONOFAVAILING,4#ORENCASHINGTHEENTILEMENTSOF,&!
D. 4HESUMMARISEDPOSITIONOFVARIOUS$ElNED"ENElT0LANSRECOGNISEDINTHE3TATEMENTOF0ROlT,OSS"ALANCE3HEETAND/THER
#OMPREHENSIVE)NCOMEAREASUNDER
Directors’
Report
&IGURESGIVENIN5NBOLD)TALIC&ONTINTHETABLEAREFORPREVIOUSYEAR
Management’s
Provident Gratuity PRMS Staff Pension PRMS Resettlement Ex-Gratia Gratuity
Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded Non-Funded Non-Funded
$ElNED/BLIGATION 13,317.81 2,799.06 4,561.94 1.23 164.31 122.34 190.55 3.68
at the beginning 11,756.18 1,523.45 4,322.03 2.85 59.67 87.58 198.42 2.82
Responsibility Report
Current Service Cost 439.01 40.59 208.16 - 3.58 19.71 - 0.19
420.95 21.66 197.94 0.06 3.32 13.96 - 0.15
0AST3ERVICE#OST - - - - - - - -
Business
- 1,354.35 - - 103.77 40.78 - -
Interest Cost 1,161.37 217.91 354.01 0.01 12.75 9.52 14.90 0.42
1,159.20 111.04 321.99 0.12 4.44 6.38 14.90 0.36
Contribution by 1,204.47 - - - - - - - Report on Corporate
employees 1,014.48 - - - - - - -
.ET,IABILITY 84.11 - - - - - - -
Governance
TRANSFERRED)N/UT 68.01 - - - - - - -
"ENElTSPAID (1,335.83) (383.06) (203.04) (1.24) (3.98) (8.18) (27.60) (0.14)
(1,101.01) (155.83) (180.16) (1.82) (3.49) (6.16) (27.32) (0.14)
!CTUARIALGAIN LOSS - 132.48 (12.13) - (1.12) (22.56) 31.07 (0.26)
financial
Obligation at the 13,317.81 2,799.06 4,561.94 1.23 164.31 122.34 190.55 3.68
Statements
statements
Financial
ENDOFTHEYEAR
370 Indian Oil Corporation Limited 2nd Integrated Annual Report
III 2ECONCILIATIONOF&AIR6ALUEOF0LAN!SSETSAND$ElNED"ENElT/BLIGATION
`IN#RORE
Provident Gratuity PRMS Staff PRMS Resettlement Ex-Gratia Gratuity
Fund Pension Allowance
Fund at AOD
Funded Funded Funded Funded Non-Funded Non-Funded Non-Funded Non-Funded
&AIR6ALUEOF0LAN 15,192.58 2,687.78 4,993.59 - - - - -
Assets at the end 13,584.65 1,919.39 4,642.23 1.24 - - - -
OFTHEYEAR
$ElNED"ENElT 14,870.94 2,806.98 4,908.94 - 175.54 120.83 208.92 3.89
Obligation at the 13,317.81 2,799.06 4,561.94 1.23 164.31 122.34 190.55 3.68
ENDOFTHEYEAR
Amount not (321.64) - - - - - - -
recognised in the (266.84) - - - - - - -
Balance Sheet
ASPERPARAOF
)ND
!S
Amount - 119.20 (84.65) - 175.54 120.83 208.92 3.89
recognised in the 879.67 (80.29) (0.01) 164.31 122.34 190.55 3.68
Balance Sheet
60th Annual Report 2018-19 371
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 36 : EMPLOYEE BENEFITS (Contd...)
Chairman’s Desk
IV !MOUNTRECOGNISEDIN3TATEMENTOF0ROlTAND,OSS#ONSTRUCTION0ERIOD%XPENSES
`IN#RORE
From the
Provident Gratuity PRMS Staff PRMS Resettlement Ex-Gratia Gratuity
Fund Pension Allowance
Fund at AOD
Funded Funded Funded Funded Non-Funded Non-Funded Non-Funded Non-Funded
About IndianOil
Current Service 439.01 40.59 208.16 - 3.58 19.71 - 0.19
Cost 420.95 21.66 197.94 0.06 3.32 13.96 - 0.15
0AST3ERVICE#OST - - - - - - - -
- 1,354.35 - - 103.77 40.78 - -
.ET)NTEREST#OST - 64.49 (6.23) 0.01 12.75 9.52 14.90 0.42
Description of
- (29.13) 46.16 - 4.44 6.38 14.90 0.36
Capitals
Contribution by - - (1.27) - - - - -
Employees - - (1.18) - - - - -
Board of
(v) Amount recognised in Other Comprehensive Income (OCI)
`IN#RORE
Provident Gratuity PRMS Staff PRMS Resettlement Ex-Gratia Gratuity
Fund Pension Allowance
Fund at AOD
Directors’
Report
Funded Funded Funded Funded Non-Funded Non-Funded Non-Funded Non-Funded
!CTUARIALGAIN LOSS - 1.79 (14.86) - (1.12) (0.15) 2.30 0.31
Management’s
assumptions
!CTUARIALGAIN LOSS - 130.69 2.73 - - (22.41) 28.77 (0.57)
on Obligations - 31.00 (291.86) 0.02 - (12.58) - 0.69
$UETO%XPERIENCE
Responsibility Report
2E
MEASUREMENT 1.34 29.09 31.95 - - - - -
2ETURNONPLAN 0.48 10.76 70.74 0.07 - - - -
ASSETSEXCLUDING
Business
)NTEREST)NCOME
.ET,OSS'AIN (1.34) 103.39 (44.08) - (1.12) (22.56) 31.07 (0.26)
RECOGNIZEDIN/#) (0.48) (66.37) (170.60) (0.05) (3.40) (20.20) 4.55 0.49
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
372 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 36 : EMPLOYEE BENEFITS (Contd...)
Chairman’s Desk
(viii) Investment Details
Provident Fund Gratuity PRMS Staff Pension Fund at AOD
From the
Funded Funded Funded Funded
)NVESTMENTWITH)NSURER - 99.67% 94.29% -
- 98.54% 93.95% 97.27%
About IndianOil
3ELFMANAGEDINVESTMENTS 100.00% 0.33% 5.71% -
100.00% 1.46% 6.05% 2.73%
Details of the investment pattern for the above mentioned funded obligations is as under:
Provident Fund Gratuity PRMS Staff Pension Fund at AOD
Funded Funded Funded Funded
Description of
'OVERNMENT3ECURITIES#ENTRAL 49.72% 69.08% 69.68% -
Capitals
3TATE 44.12% 68.24% 65.19% 2.73%
Investment in Equity/Mutual 6.81% 5.16% 5.20% -
Board of
Other approved investments 4.15% 9.41% 2.45% -
INCL#ASH 9.96% 3.66% 4.06% 97.27%
IX 4HEFOLLOWINGPAYMENTSAREEXPECTEDPROJECTIONSTOTHEDElNEDBENElTPLANINFUTUREYEARS
Directors’
`IN#RORE
Report
Cash Flow Projection from the Gratuity PRMS Staff Pension PRMS Resettlement Ex-Gratia
Fund/Employer Fund at AOD Allowance
Management’s
507.04 183.81 0.02 4.19 9.01 33.03
"ETWEENTO9EARS 1,147.31 904.46 - 26.28 32.33 117.07
1,142.29 780.53 1.36 23.20 33.17 106.74
Responsibility Report
"ETWEENTO9EARS 1,133.45 1,245.33 - 51.30 40.38 88.61
1,168.56 1,098.67 - 47.12 43.84 82.83
Note : 'ENERAL$ESCRIPTIONOFTHEDElNEDBENElTPLANSAPPLICABLETOHOLDINGCOMPANY
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
374 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 37 : COMMITMENTS AND CONTINGENCIES (Contd...)
Chairman’s Desk
$ETAILSOFEXPENSESBOOKEDUNDERVARIOUSARRANGEMENTSAREASUNDER
`IN#RORE
From the
Operating Lease cases under Appendix C of Ind AS-17 2018-19 2017-18
0ROCESSING&EEUNDERTHEHEADh/THEREXPENSESvINRELATIONTOLUBRICANTSlLLINGARRANGEMENT -
(ANDLINGEXPENSEUNDERTHEHEADh/THEREXPENSESvINRELATIONTO#&!ARRANGEMENT 28.20
About IndianOil
&REIGHTANDTRANSPORTATIONCHARGESUNDERTHEHEADh/THER%XPENSESvINRELATIONTOARRANGEMENTWITH 8,441.82
transporters
0ROCESSING &EE AND OTHER CHARGES UNDER THE HEAD h/THER EXPENSESv IN RELATION TO TERMINALLING 21.13
ARRANGEMENTWITH'#04#,
4RANSPORTATIONCHARGESUNDERTHEHEADh/THEREXPENSESvINRELATIONTO0RIME-OVER!GREEMENT 7.65
0URCHASEOFNITROGENOXYGENFORSUPPLYOFOXYGENANDNITROGENAT0ANIPAT2ElNERYUNDERÑ#OSTOF 122.25
Description of
MATERIALSCONSUMEDÑ
Capitals
&REIGHT CHARGES UNDER THE HEAD Ñ#OST OF -ATERIALS #ONSUMEDÑh/THER EXPENSESv IN RELATION TO 4IME 796.55
Charter Arrangement
Board of
`IN#RORE
2018-19 2017-18
!,EASERENTALSRECOGNIZEDASINCOMEDURINGTHEYEAR 2.21
"6ALUEOFASSETSGIVENONLEASEINCLUDEDIN0ROPERTY0LANTAND%QUIPMENTS
'ROSS#ARRYING!MOUNT 1.44
Directors’
Report
!CCUMULATED$EPRECIATION 0.26
$EPRECIATIONRECOGNIZEDINTHE3TATEMENTOF0ROlTAND,OSS 0.04
Management’s
(c) Finance lease — as Lessee
4HE'ROUPHASENTEREDINTOFOLLOWINGMATERIALlNANCELEASEARRANGEMENTS
I "//4AGREEMENTWITH)/45TKAL%NERGY3ERVICES,TDINRESPECTOF4ANKAGESFACILITYFORAPERIODOFYEARS,ESSORWILLTRANSFER
OWNERSHIPTO4HE'ROUPAFTER9EARSAT.),VALUE
Responsibility Report
II "//4AGREEMENTWITH),&3INRESPECTOF7ATER)NTAKEFACILITYFORAPERIODOFYEARS,ESSORWILLTRANSFEROWNERSHIPTO4HE
'ROUPAFTER9EARSAT`0.01 crore.
Business
III 4HE'ROUPHASENTEREDINTOlNANCELEASEARRANGEMENTSWITH'UJARAT!DANI0ORT,IMITEDRELATEDTO0ORTFACILITIESAT'UJARATFOR
APERIODOFYEARSANDMONTHS
IV 4HE'ROUPHASOBTAINEDVARIOUSLANDSFROMTHEGOVERNMENTSFORPURPOSEOFPLANTSFACILITIESANDOFlCES,EASECASESWHEREAT
Report on Corporate
THEINCEPTIONOFTHELEASETHEPRESENTVALUEOFMINIMUMLEASEPAYMENTSISSUBSTATITALLYEQUALTOTHEFAIRVALUEOFLEASEDASSETS
ARECONSIDEREDUNDERlNANCELEASES!LSOREFER.OTE"FORMOREDETAILSONJUDGEMENTSMADEFORLEASECLASSIlCATION
Governance
Consolidated financial
Statements
statements
Financial
376 Indian Oil Corporation Limited 2nd Integrated Annual Report
`IN#RORE
March 31, 2019 March 31, 2018
A. Gross Investments in Finance Lease 510.17 432.28
,ESS5NEARNED&INANCE)NCOME 7.72
,ESS&INANCE)NCOME2ECEIVED 173.48
,ESS-INIMUM,EASEPAYMENTRECEIVED 269.00
Net Investment in Finance Lease as on Date 59.97 1.07
"5NEARNEDlNANCE)NCOME 7.72 0.16
C. Present Value of Minimum Lease Payments Receivable
7ITHINONEYEAR 18.50
!FTERONEYEARBUTNOTMORETHANlVEYEARS 41.47
-ORETHANlVEYEARS -
TOTAL 59.97 1.07
D. Break-up of un-earned income
7ITHINONEYEAR 4.04
!FTERONEYEARBUTNOTMORETHANlVEYEARS 3.68
-ORETHANlVEYEARS -
TOTAL 7.72 0.16
60th Annual Report 2018-19 377
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 37 : COMMITMENTS AND CONTINGENCIES (Contd...)
Chairman’s Desk
B. Contingent Liabilities
From the
B.1 Claims against the Group not acknowledged as debt
#LAIMSAGAINSTTHE'ROUPNOTACKNOWLEDGEDASDEBTAMOUNTINGTO`10,830.43 crore`CRORE AREASUNDER
"`589.62 crore`CRORE BEINGTHEDEMANDSRAISEDBYTHE#ENTRAL%XCISE#USTOMS3ERVICE4AX!UTHORITIES
INCLUDINGINTERESTOF`180.03 crore`CRORE
About IndianOil
"`52.39 crore`CRORE INRESPECTOFDEMANDSFOR%NTRY4AXFROM3TATE'OVERNMENTSINCLUDINGINTERESTOF
`11.69 crore`CRORE
"`3,150.92 crore `CRORE BEINGTHEDEMANDSRAISEDBYTHE6!43ALES4AX!UTHORITIESINCLUDINGINTEREST
OF`1,195.85 crore`CRORE
"`3,418.73 crore`CRORE INRESPECTOF)NCOME4AXDEMANDSINCLUDINGINTERESTOF`466.31 crore
Description of
`CRORE
"`2,433.26CRORE`CRORE INCLUDING`1,713.4 crore`CRORE ONACCOUNTOF0ROJECTSFOR
Capitals
WHICHSUITSHAVEBEENlLEDINTHE#OURTSORCASESARELYINGWITH!RBITRATOR4HISINCLUDESINTERESTOF`196.3 crore
`CRORE
Board of
HASBEENCONSIDEREDASREMOTE
B.2 Other money for which the Group is contingently liable
0ENDINGDECISIONOFTHE'OVERNMENTNOLIABILITYCOULDBEDETERMINEDANDPROVIDEDFORINRESPECTOFADDITIONALCOMPENSATION
IFANYPAYABLETOTHELANDOWNERSANDTHE'OVERNMENTFORCERTAINLANDSACQUIRED
Directors’
C. Commitments
Report
C.1 Capital Commitments
%STIMATEDAMOUNTOFCONTRACTSREMAININGTOBEEXECUTEDON#APITAL!CCOUNTANDNOTPROVIDEDFOR`24,492.45 crore
Management’s
C.2 Other Commitments
#4HE'ROUPHASANEXPORTOBLIGATIONTOTHEEXTENTOF`816.91 crore `CRORE ONACCOUNTOFCONCESSIONAL
RATEOFDUTYAVAILEDUNDER%0#'LICENSESCHEMEONPROCUREMENTOFCAPITALGOODSANDTHESAMEISEXPECTEDTOBEFULlLLED
BYWAYOFEXPORTS
Responsibility Report
#4OMEETTHEDIRECTIONOF(ONOURABLE(IGHCOURTOF/RISSATHE'ROUPHASACOMMITMENTTOPAY`280.10 crore
`CRORE TOWARDSPROVIDINGHIGHTECHAMBULANCESREMOVALOFOLDANICUTANDCONSTRUCTIONOFWATERTREATMENTPLANT
INTHESTATEOF/RISSA)NADDITIONTHE'ROUPHASTOINCURCOSTTOWARDSDREDGINGTHROUGH/RISSA#ONSTRUCTION#OASTATE
Business
GOVERNMENTAGENCYESTIMATEFORWHICHYETTOBElNALISED
#)NDIAN/IL,.'0RIVATE,IMITED)/,0, THE*6COMPANYHASENTEREDINTO$EBENTURE3UBSCRIPTION!GREEMENTWITH)#)#)
"ANK)#)#) INWHICHTHE#OMPANY)/#, ASPROMOTEROF)/,0,HASPROVIDEDPUTOPTIONUNDERWHICH)#)#)HASOPTION Report on Corporate
TOSELL#OMPULSORY#ONVERTIBLE$EBENTURE##$ TOTHE#OMPANY)/#, BEFORETHEEXPIRYDATE)NADDITIONTOTHISTHE
#OMPANYATTHESOLEDISCRETIONHASRIGHTTOACQUIRE##$FROM)#)#)ONORBEFORETHEEXPIRYDATE4HE'ROUPS)/#,
Governance
SHAREOFSUCHOBLIGATIONIS`808.44 Crore`#RORE
#4HE'ROUPHASISSUED#ORPORATE'UARANTEEONBEHALFOF)NDIAN/IL!DANI'AS0RIVATE,IMITED)/!'0, TOTHEEXTENTOF
OBLIGATIONSOFLATERCOMPANYUNDER0ERFORMANCE"ANK'UARANTEEFACILITYPROVIDEDTO)/!'0,BY@3TATE"ANKOF)NDIA
financial
C )N RESPECT OF -S -ETRO "UILDERS FOR THE AMOUNT OF RISK COST CLAIM ALONG WITH 5.36
SUPERVISIONCHARGESPRICEDISCOUNTANDINTERESTADMITTEDBYTHE!RBITRATORIN
FAVOUROFTHE'ROUP
D )NRESPECTOF%LECTRICITY$UTYARREARSCLAIMEDFROM'UJARAT%LECTRICITY"OARD'%" 31.02
FORSTATIONSWEF$ECEMBERBASEDONSIMILARCASEDECIDEDBY'UJARAT(IGH
#OURTINFAVOUROFTHE'ROUP
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 38 : RELATED PARTY DISCLOSURES
Chairman’s Desk
As required by Ind AS -24 “Related Party Disclosures”, are given below :
From the
1. Relationship with Entities
A) Details of Joint Ventures (JV)/Associate Entities to IOCL & its subsidiaries
)NDIAN/ILTANKING,IMITED .0#),
)NDIAN/IL.UCLEAR%NERGY#ORPORATION,IMITED
&ORMERLYKNOWNAS)/4)NFRASTRUCTURE%NERY3ERVICES,TD '30,)NDIA4RANSCO,IMITED
About IndianOil
,UBRIZOL)NDIA0RIVATE,IMITED '30,)NDIA'ASNET,IMITED
0ETRONET6+,IMITED )NDIAN/IL
!DANI'AS0RIVATE,IMITED
)NDIAN/IL0ETRONAS0RIVATE,IMITED -UMBAI!VIATION&UEL&ARM&ACILITY0RIVATE,IMITED
!VI
/IL)NDIA0RIVATE,IMITED +OCHI3ALEM0IPELINE0RIVATE,IMITED
Description of
0ETRONET)NDIA,IMITED
(INDUSTAN5RVARAK2ASAYAN,IMITED
0ETRONET,.',IMITED 2ATNAGIRI2ElNERY0ETROCHEMICALS,IMITED
Capitals
'REEN'AS,IMITED )NDRADHANUSH'AS'RID,IMITED)NCORPORATEDON
)NDIAN/IL0ANIPAT0OWER#ONSORTIUM,IMITED )NDIAN!DDITIVES,IMITED
Board of
)NDIAN/IL3KY4ANKING0RIVATE,IMITED 4AAS)NDIA04%,IMITED
3UNTERA.IGERIA,IMITED 6ANKOR)NDIA04%,IMITED
$ELHI!VIATION&UEL&ACILITY0RIVATE,IMITED #EYLON0ETROLEUM3TORAGE4ERMINALS,IMITED
)NDIAN3YNTHETIC2UBBER0RIVATE,IMITED &ALCON/IL'AS"6
Directors’
)NDIAN/IL2UCHI"IOFUELS,,0Ï 5RJA"HARAT04%,TD)NCORPORATEDON
Report
B) Details of Subsidiaries to JV’s of IOCL
Management’s
3TEWARTSAND,LOYDSOF)NDIA,IMITED *3#+AZAKHSTAN#ASPISHELF
)/4)NFRASTRUCTURES0RIVATE,IMITED )/46)4/-5(%.$)3,)+).3!!46%4!!(54!3
)/45TKAL%NERGY3ERVICES,IMITED )NDIAN/IL3KYTANKING$ELHI0VT,IMITED
Responsibility Report
04)/4%0#)NDONESIA )/4"IOGAS0RIVATE,IMITED
)/4%NGINEERING0ROJECTS,IMITED &ORMERLYKNOWNAS)/4-ABAGAS0RIVATE,IMITED
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
380 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 38 : RELATED PARTY DISCLOSURES (Contd...)
Chairman’s Desk
Note:
4RANSACTIONSINEXCESSOFOFTHETOTALRELATEDPARTYTRANSACTIONSFOREACHTYPEHASBEENDISCLOSEDABOVE
From the
)NCASEOF*OINT6ENTURE3UBSIDIARY#OMPANIESCONSTITUTEDACQUIREDDURINGTHEPERIODTRANSACTIONSWEFDATEOFCONSTITUTION
ACQUISITIONISDISCLOSED
)NCASEOF*OINT6ENTURE3UBSIDIARY#OMPANIESWHICHHAVEBEENCLOSEDDIVESTEDDURINGTHEPERIODTRANSACTIONSUPTOTHEDATE
OFCLOSUREDISINVESTMENTONLYAREDISCLOSED
About IndianOil
2. Relatives of Key Managerial Personnel and nature of relation with whom transactions are undertaken during the year:
3HRI"62AGHAV2AJU-ANAGER)NDIAN/IL#ORPORATION,IMITED 3ONOF+EY-ANAGERIAL0ERSONNEL
Details relating to the parties referred to in Item No.2 above:
`IN#RORE
Description of
March 31, 2019 March 31, 2018
1 Remuneration
Capitals
3HRI"62AGHAV2AJU 0.24
2 Outstanding Receivables/Loans
'OVERNMENTRELATEDENTITIESWHERESIGNIlCANTTRANSACTIONSCARRIEDOUT
Board of
!PARTFROMTRANSACTIONSREPORTEDABOVETHE'ROUPHASTRANSACTIONSWITHOTHER'OVERNMENTRELATEDENTITIESWHICHINCLUDESBUTNOT
LIMITEDTOTHEFOLLOWING
.AMEOF'OVERNMENT'OVERNMENTOF)NDIA#ENTRALAND3TATE'OVERNMENT
.ATUREOF4RANSACTIONS
• 3ALEOF0RODUCTSAND3ERVICES
• 0URCHASEOF0RODUCTS
Directors’
• 0URCHASEOF2AW-ATERIALS
Report
• (ANDLINGAND&REIGHT#HARGESETC
Management’s
,IQUIDATORHASBEENAPPOINTEDFORWINDINGUPOFCOMPANYWEF!UGUST
4HE*6#HASNOTBEENCLOSEDWOUNDUPASYETHOWEVERTHECOMPANYISNOTCARRYINGOUTANYOPERATIONS
Ï )NDIAN/ILHASDECIDEDTOEXITTHE*OINT6ENTUREANDHASGIVENNOTICEOFITSEXITFROMTHE,,0TOTHEOTHER*6PARTNERVIZ2UCHI
3OYA)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBERSTATINGTHATITWILLEXITTHE,,0WEF*ANUARY
Responsibility Report
4) Key Managerial Personnel
A. Whole Time Directors/Company Secretary B. Independent Directors C. Government Nominee Directors
Business
3HRI3ANJIV3INGH 3HRI3ANJAY+APOOR 3HRI!SHUTOSH*INDAL
5PTO$ECEMBER
Report on Corporate
3HRI!+3HARMA 3HRI0ARINDU+"HAGAT 3MT5RVASHI3ADHWANI
5PTO*ANUARYANDWEF 5PTO-AY
&EBRUARY
Governance
3HRI2ANJAN+UMAR-OHAPATRA 3HRI#HITTA2ANJAN"ISWAL
3HRI'URMEET3INGH $R*AGDISH+ISHWAN
WEF*ULY
3HRI!KSHAY+UMAR3INGH 3HRI3ANKAR#HAKRABORTI
WEF!UGUST
3HRI+AMAL+UMAR'WALANI 3HRI$HARMENDRA33HEKHAWAT
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 38 : RELATED PARTY DISCLOSURES (Contd...)
Chairman’s Desk
March 31, 2018
`IN#RORE
From the
Key Managerial Personnel Short-Term Post Other Total Sitting Outstanding Loans
Employee Employment Long Term Remuneration Fees (Gross)/Advance
"ENElTS "ENElTS "ENElTS Receivables
A. Whole Time Directors/Company Secretary
About IndianOil
3HRI3ANJIV3INGH
3HRI!+3HARMA
3HRI'+3ATISH
$R3362AMAKUMAR
3HRI"62AMA'OPAL
Description of
3HRI2ANJAN+UMAR-OHAPATRA
Capitals
3HRI'URMEET3INGH
3HRI!KSHAY+UMAR3INGH
Board of
3HRI3ANJAY+APOOR
3HRI0ARINDU+"HAGAT
3HRI6INOO-ATHUR
3HRI3AMIRENDRA#HATTERJEE
Directors’
3HRI6IVEK2AE
Report
3HRI#HITTA2ANJAN"ISWAL
$R*AGDISH+ISHWAN
Management’s
3HRI$HARMENDRA33HEKHAWAT
TOTAL 2.78 0.34 0.78 3.90 0.63 0.59
Notes :
Responsibility Report
4HISDOESNOTINCLUDETHEIMPACTOFPROVISIONMADEONACTUARIALVALUATIONOFRETIREMENTBENElTLONGTERM3CHEMESANDPROVISION
MADEDURINGTHEPERIODTOWARDS0OST2ETIREMENT"ENElTSASTHESAMEARENOTSEPARATELYASCERTAINABLEFORINDIVIDUALDIRECTORS
Business
)NADDITIONWHOLE
TIME$IRECTORSAREALSOALLOWEDTHEUSEOF#ORPORATIONSCARFORPRIVATEPURPOSESUPTOKMSPERANNUMON
APAYMENTOF`
PERMENSEM
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
384 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 39 : SEGMENT INFORMATION
Chairman’s Desk
Primary Segment Reporting as per Ind AS 108 for the year ended March 31, 2019 is as under
`IN#RORE
2018-19 2017-18
From the
Petroleum Petro- Other Eliminations Total Petroleum Petro- Other Eliminations Total
Products chemicals Business Products chemicals Business
Revenue
%XTERNAL2EVENUE 585,134.10 21,146.91 10,961.83 - 617,242.84
)NTER
SEGMENT2EVENUE 11,651.29 35.91 95.89 (11,783.09) -
About IndianOil
Total Revenue 5,96,785.39 21,182.82 11,057.72 (11,783.09) 6,17,242.84 4,98,430.32 18,059.16 7,545.43 (8,493.02) 5,15,541.89
Result
Segment Results 23,765.12 4,246.56 764.87 - 28,776.55
EXCLUDING%XCHANGE'AIN
,OSS
3EGMENTAL%XCHANGE (1,549.66) (48.86) 3.82 - (1,594.70)
'AIN,OSS
Segment Results 22,215.46 4,197.70 768.69 - 27,181.85 29,310.06 5,226.22 (99.84) - 34,436.44
Description of
Less: Unallocable
Capitals
Expenditure
&INANCE#OST 4,887.98
,OSSON3ALEOF 1.60
)NVESTMENTS.ET
Board of
%XCHANGE,OSS
.ET 146.24
,OSSON$ERIVATIVES -
&AIRVALUE,OSSON -
&INANCIALINSTRUMENTS
CLASSIlEDAS&640,
!MORTISATIONOF&# 148.39
-ONETARY)TEM4RANSLATION
Directors’
Add: Unallocable Income
Report
)NTEREST$IVIDEND)NCOME 2,609.57
0ROlTON3ALEOF -
)NVESTMENTS.ET
Management’s
BACK.ET
%XCHANGE'AIN
.ET -
'AINON$ERIVATIVES 0.32
&AIRVALUEGAINON 13.87
&INANCIALINSTRUMENTS
CLASSIlEDAS&640,
Responsibility Report
/THERNONOPERATING 88.92
income
3HAREOF0ROlTIN*OINT 1,384.38
Business
6ENTUREAND!SSOCIATES
0ROlT"EFORE4AX 25,926.90 34,450.22
,ESS)NCOME4AXINCLUDING 8,653.05
DEFERREDTAX
Report on Corporate
0ROlT!FTER4AX 17,273.85 22,626.35
A 3ALEOF0ETROLEUM0RODUCTS
B 3ALEOF0ETROCHEMICALS
C /THER"USINESSESWHICHCOMPRISES3ALEOF'AS%XPLOSIVES#RYOGENICS7IND-ILL3OLAR0OWER'ENERATIONAND/IL'AS%XPLORATION!CTIVITIES
3EGMENTSHAVEBEENIDENTIlEDANDREPORTEDTAKINGINTOACCOUNTTHENATUREOFPRODUCTSANDSERVICESANDDIFFERINGRISKSANDRETURNS
financial
C 3UBSIDY'RANTSRECEIVEDFROM'OVERNMENTS
Statements
statements
Financial
D /THER/PERATING2EVENUE
3. Inter segment pricing are at Arm’s length basis
4. There are no reportable geographical segments.
386 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 39 : SEGMENT INFORMATION (Contd...)
Chairman’s Desk
Primary Segment Reporting as per Ind AS 108 for the year ended March 31, 2019 is as under
Geographical information
From the
`IN#RORE
Revenue from external customers Non-current assets
2018-19 2017-18 2018-19 2017-18
About IndianOil
India 5,76,819.86 1,58,323.60
Outside India 40,422.98 18,170.88
TOTAL 6,17,242.84 5,15,541.89 1,76,494.48 1,57,494.19
Description of
`IN#RORE
2018-19 2017-18
Capitals
-OTOR3PIRIT-3 1,16,709.14
(IGH3PEED$IESEL(3$ 3,06,006.65
Board of
!VIATION4URBINE&UEL!4& 32,666.09
Others 82,451.96
Total External Revenue 6,17,242.84 5,15,541.89
Directors’
Report
Discussion & Analysis
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
388 Indian Oil Corporation Limited 2nd Integrated Annual Report
Financial Liabilities
A. Borrowings:
Amortised Cost:
4ERM,OANSFROM/IL)NDUSTRY 509.65 512.31 Level 2
$EVELOPMENT"OARD/)$"
&INANCELEASEOBLIGATION 3,510.80 3,983.20 Level 2
&OREIGN#URRENCY"ONDS
53$OLLARS 13,256.62 14,015.75 Level 1
&OREIGN#URRENCY"ONDS
3INGAPORE 2,091.67 2,125.42 Level 2
$OLLARS
,OANFROM/DISHA'OVERNMENT 707.33 637.29 Level 2
"/THERlNANCIALLIABILITIES
&AIRVALUETHROUGHPROlTANDLOSS
(FVPL):
$ERIVATIVE )NSTRUMENTS AT FAIR VALUE 249.07 249.07 Level 2
THROUGHPROlTORLOSS
#/THERlNANCIALLIABILITIES
Fair value through OCI (FVOCI):
Hedging Derivatives
&OREIGN EXCHANGE FORWARD CONTRACTS
9.33
9.33
Level 2
Loans
Notes:
4HE MANAGEMENT ASSESSED THAT FAIR VALUE OF 4RADE 2ECEIVABLES #ASH AND #ASH %QUIVALENTS "ANK "ALANCES 2ECOVERABLE FROM
%MPLOYEE "ENElTS 4RUSTS /THER .ON
DERIVATIVE #URRENT &INANCIAL !SSETS &INANCE ,EASE 2ECEIVABLE 3ECURITY $EPOSITS PAID AND
RECEIVED3HORT
TERM"ORROWINGSINCLUDING#URRENT-ATURITIESOF,ONGTERM"ORROWINGS 4RADE0AYABLES&LOATING2ATE"ORROWINGS
2ECEIVABLES /THER .ON
DERIVATIVE #URRENT &INANCIAL ,IABILITIES AND ,IABILITIES TOWARDS lNANCIAL GUARANTEES APPROXIMATE THEIR
CARRYINGAMOUNTS
4HEFAIRVALUEOFTHElNANCIALASSETSANDLIABILITIESISINCLUDEDATTHEAMOUNTATWHICHTHEINSTRUMENTCOULDBEEXCHANGEDINACURRENT
TRANSACTIONBETWEENWILLINGPARTIESOTHERTHANINAFORCEDORLIQUIDATIONSALE
60th Annual Report 2018-19 389
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 40 : FAIR VALUES (Contd...)
Chairman’s Desk
Methods and assumptions
From the
4HEFOLLOWINGMETHODSANDASSUMPTIONSWEREUSEDTOESTIMATETHEFAIRVALUESATTHEREPORTINGDATE
A. Level 1 Hierarchy:
I Quoted Equity Shares:#LOSINGQUOTEDPRICEUNADJUSTED IN.ATIONAL3TOCK%XCHANGEOF)NDIA,IMITED
II Quoted Government Securities:#LOSINGPUBLISHEDPRICEUNADJUSTED IN#LEARING#ORPORATIONOF)NDIA,IMITED
About IndianOil
III Foreign Currency Bonds - US Dollars:#LOSINGPRICEFORTHESPECIlCBONDCOLLECTEDFROM"ANK
IV Unit Trust Investment: #LOSING.!6FORTHESPECIlCINVESTMENTAVAILABLEIN4RUST"ULLETIN.EWSPAPER
B. Level 2 Hierarchy:
I $ERIVATIVEINSTRUMENTSATFAIRVALUETHROUGHPROlTORLOSS2EPLACEMENTCOSTQUOTEDBYINSTITUTIONSFORSIMILARINSTRUMENTSBY
EMPLOYINGUSEOFMARKETOBSERVABLEINPUTS
Description of
II Unquoted Equity Instrument in Lanzatech New Zealand Ltd. at fair value through OCI :&AIRVALUEAPPROXIMATESTHEIRCARRYING
Capitals
AMOUNTANDINCLUDEDIN,EVELASTHEREWASCOMPARABLETRANSACTIONWITHATHIRDPARTYFORTHESAMEPRICEDURINGTHE&INANCIAL
YEAR
III Hedging Derivatives at fair value through OCI :2EPLACEMENTCOSTQUOTEDBYINSTITUTIONSFORSIMILARINSTRUMENTSBYEMPLOYING
Board of
V Finance Lease Obligation: &OROBLIGATIONARRIVEDBASEDON)22IMPLICITRATEAPPLICABLEONTHEREPORTINGDATEANDFOROBLIGATION
ARRIVEDBASEDONINCREMENTALBORROWINGRATEAPPLICABLERATEFORREMAININGMATURITY
VI Non-Convertible Redeemable Bonds, Foreign Currency Bonds - Singapore Dollars and Loan from Odisha Government:$ISCOUNTING
FUTURE CASH mOWS USING RATES CURRENTLY AVAILABLE FOR ITEMS ON SIMILAR TERMS CREDIT RISK AND REMAINING MATURITIES %XCLUDING
mOATINGRATEBORROWINGS
Directors’
VII Term Loans from Oil Industry Development Board (OIDB): $ISCOUNTING FUTURE CASH mOWS USING RATES CURRENTLY AVAILABLE FOR
Report
SIMILARTYPEOFBORROWINGS/)$""ORROWING2ATE USINGEXITMODELASPER)ND!3
Management’s
USINGA$#&MODEL4HEVALUATIONREQUIRESMANAGEMENTTOMAKECERTAINASSUMPTIONSABOUTTHEMODELINPUTSINCLUDINGFORECAST
CASHmOWSDISCOUNTRATECREDITRISKANDVOLATILITY4HEPROBABILITIESOFTHEVARIOUSESTIMATESWITHINTHERANGECANBEREASONABLY
ASSESSEDANDAREUSEDINMANAGEMENTSESTIMATEOFFAIRVALUEFORTHESEUNQUOTEDEQUITYINVESTMENTS
4HESIGNIlCANTUNOBSERVABLEINPUTSUSEDINTHEFAIRVALUEMEASUREMENTCATEGORISEDWITHIN,EVELOFTHEFAIRVALUEHIERARCHYTOGETHER
Responsibility Report
with a quantitative sensitivity analysis as at March 31, 2019 and March 31, 2018 are shown below:
Description Valuation
3IGNIlCANT Range (weighted Sensitivity of the input to fair value
Business
technique
unobservable average)
inputs
I (ALDIA0ETROCHEMICAL,IMITED -ARKET!PPROACH Revenue XINCREASEDECREASE IN2EVENUE
INCLUDEDUNDER&64/#)ASSETS WITHEQUAL Multiple X
X -ULTIPLEWOULDRESULTININCREASE
Report on Corporate
Unquoted Equity Instruments carried at FVOCI includes following investments for which sensitivity disclosure are not disclosed:
Carrying Value (`in Crore)
March 31, 2019 March 31, 2018
-ER2OUGE/IL3TORAGE4ERMINAL#OMPANY,IMITED 6.27
"IO4ECH#ONSORTIUM)NDIA,IMITED 0.10
MRL Industrial Cooperative Service Society 0.01
Woodlands Multispeciality Hospital Limited 0.10
)NTERNATIONAL#OOPERATIVE0ETROLEUM!SSOCIATION.EW9ORK 0.02
Reconciliation of fair value measurement of Assets and Liabilities under Level 3 hierarchy of Fair Value measurement:
Description FVTOCI Assets
Unquoted Equity Shares
Balance as at March 31, 2018 1,522.12
Addition
Redemption/Sales
&AIR6ALUE#HANGES
%XCHANGE$IFFERENCE
Balance as at March 31, 2019 1,402.05
60th Annual Report 2018-19 391
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 41 : FINANCIAL INSTRUMENTS AND RISK FACTORS
Chairman’s Desk
Financial Risk Factors
From the
4HE'ROUPSPRINCIPALlNANCIALLIABILITIESOTHERTHANDERIVATIVESCOMPRISE"ORROWINGSTRADEANDOTHERPAYABLESSECURITYDEPOSITS
EMPLOYEELIABILITIESANDlNANCELEASEOBLIGATION4HEMAINPURPOSEOFTHESElNANCIALLIABILITIESISTOlNANCETHE'ROUPSOPERATIONS
ANDTOPROVIDEGUARANTEESTOSUPPORTITSOPERATIONS4HE'ROUPSPRINCIPALlNANCIALASSETSINCLUDELOANSADVANCESTRADEANDOTHER
RECEIVABLESSHORT
TERMDEPOSITSANDCASHCASHEQUIVALENTSTHATDERIVEDIRECTLYFROMITSOPERATIONS4HE'ROUPALSOHOLDS&64/#)
INVESTMENTSANDENTERSINTODERIVATIVETRANSACTIONS
About IndianOil
4HE'ROUPISEXPOSEDTOANUMBEROFDIFFERENTlNANCIALRISKSARISINGFROMNATURALBUSINESSEXPOSURESASWELLASITSUSEOFlNANCIAL
INSTRUMENTSINCLUDINGMARKETRISKRELATINGTOINTERESTRATECOMMODITYPRICESFOREIGNCURRENCYEXCHANGERATESANDEQUITYPRICECREDIT
RISKANDLIQUIDITYRISK
4HE 2ISK -ANAGEMENT#OMMITEE COMPRISED OF SENIOR MANAGEMENT OVERSEES THE MANAGEMENT OF THESE RISKS 4HE 'ROUPS SENIOR
MANAGEMENTISSUPPORTEDBYA2ISK-ANAGEMENT#OMPLIANCE"OARDTHATADVISESONlNANCIALRISKSANDTHEAPPROPRIATElNANCIAL
RISKGOVERNANCEFRAMEWORKFORTHE'ROUP4HE2ISK-ANAGEMENT#OMMITTEEPROVIDESASSURANCETOTHE'ROUPSSENIORMANAGEMENT
Description of
THATTHE'ROUPSlNANCIALRISKACTIVITIESAREGOVERNEDBYAPPROPRIATEPOLICIESANDPROCEDURESANDTHATlNANCIALRISKSAREIDENTIlED
Capitals
MEASUREDANDMANAGEDINACCORDANCEWITHTHE'ROUPSPOLICIESRISKOBJECTIVESANDRISKAPPETITE
4HE'ROUPSREQUIREMENTOFCRUDEOILAREMANAGEDTHROUGHINTEGARTEDFUNCTIONHANDLEDTHROUGHITSINTERNATIONALTRADEANDOPTIMIZATION
DEPARTMENT!LLDERIVATIVEACTIVITIESFORRISKMANAGEMENTPURPOSESARECARRIEDOUTBYSPECIALISTTEAMSTHATHAVETHEAPPROPRIATESKILLS
Board of
4HE"OARDOF$IRECTORSOVERSEETHERISKMANAGEMENTACTIVITIESFORMANAGINGEACHOFTHESERISKSWHICHARESUMMARISEDBELOW
A. Market risk
-ARKETRISKISTHERISKTHATTHEFAIRVALUEOFFUTURECASHmOWSOFAlNANCIALINSTRUMENTWILLmUCTUATEBECAUSEOFCHANGESINMARKET
PRICES4HEMAJORCOMPONENTSOFMARKETRISKAREINTERESTRATERISKFOREIGNCURRENCYRISKCOMMODITYPRICERISKANDOTHERPRICERISKVIZ
EQUITYSHARESETC&INANCIALINSTRUMENTSAFFECTEDBYMARKETRISKINCLUDE"ORROWINGS$EPOSITS&64/#)INVESTMENTSANDDERIVATIVE
Directors’
lNANCIALINSTRUMENTS
Report
4HESENSITIVITYANALYSISINTHEFOLLOWINGSECTIONSRELATETOTHEPOSITIONASAT-ARCHAND-ARCH
Management’s
1. Interest Rate Risk
4HE'ROUPISEXPOSEDTOINTERESTRATERISKFROMTHEPOSSIBILITYTHATCHANGESININTERESTRATESWILLAFFECTFUTURECASHmOWSOFAlNANCIAL
INSTRUMENTPRINCIPALLYlNANCIALDEBT4HE'ROUPSEXPOSURETOTHERISKOFCHANGESINMARKETINTERESTRATESRELATESPRIMARILYTOTHE
'ROUPSLONG
TERMDEBTOBLIGATIONSWITHmOATINGINTERESTRATES
Responsibility Report
4HE'ROUPMANAGESTOMAINTAINAMIXBETWEENlXEDANDmOATINGRATESFORRUPEEANDFOREIGNCURRENCYLOANSBASEDONLIQUIDITY
AVAILABILITYOFCOSTEFFECTIVEINSTRUMENTSANDCONSIDERINGTHEMARKETREGULATORYCONSTRAINTSETC!SAT-ARCHAPPROXIMATELY
Business
57% OFTHE'ROUPSBORROWINGSAREATAlXEDRATEOFINTEREST-ARCH
4HE SENSITIVITY TO A REASONABLY POSSIBLE CHANGE IN INTEREST RATES ON THAT PORTION OF LOANS AND BORROWINGS AFFECTED WITH ALL OTHER
VARIABLESHELDCONSTANTONmOATINGRATEBORROWINGSISASFOLLOWS Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
392 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 41 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Chairman’s Desk
Particulars Increase/Decrease in % %FFECTONPROlTBEFORE Increase/Decrease in % %FFECTONPROlTBEFORE
tax (` in Crore) tax (` in Crore)
From the
March 31, 2019 March 31, 2018
Margin Hedging +10%
Margin Hedging -10%
About IndianOil
4. Equity Price Risk
4HE'ROUPSINVESTMENTINLISTEDANDNON
LISTEDEQUITYSECURITIESOTHERTHANITSINVESTMENTIN*OINT6ENTURES!SSOCIATESAND3UBSIDIARIES
ARESUSCEPTIBLETOMARKETPRICERISKARISINGFROMUNCERTAINTIESABOUTFUTUREVALUESOFTHEINVESTMENTSECURITIES
!T THE REPORTING DATE THE EXPOSURE TO UNLISTED EQUITY SECURITIES AT FAIR VALUE WAS `1,540.37 crore. 3ENSITIVITY ANALYSIS OF THESE
INVESTMENTSHAVEBEENPROVIDEDIN.OTE
4HEEXPOSURETOLISTEDEQUITYSECURITIESVALUEDATFAIRVALUEWAS`CRORE!NINCREASEDECREASEOFONTHE.3%MARKET
Description of
INDEXCOULDHAVEANIMPACTOFAPPROXIMATELY`CROREONTHE/#)ANDEQUITYATTRIBUTABLETOTHE'ROUP4HESECHANGESWOULD
NOTHAVEANEFFECTONPROlTORLOSS
Capitals
5. Derivatives and Hedging
I #LASSIlCATIONOFDERIVATIVES
Board of
gain amounting to `CRORENETOFTAX HASBEENACCOUNTEDIN/THER#OMPREHENSIVEINCOMEWHICHWILLBERECYCLEDTO3TATEMENT
OF0ROlTAND,OSSINSUBSEQUENTPERIODSONSETTLEMENTOFRESPECTIVECONTRACTS
$ERIVATIVESAREONLYUSEDFORECONOMICHEDGINGPURPOSESANDNOTASSPECULATIVEINVESTMENTS(OWEVERWHEREDERIVATIVESDONOTMEET
THEHEDGEACCOUNTINGCRITERIATHEYAREACCOUNTEDFORATFAIRVALUETHROUGHPROlTORLOSS)NFORMATIONABOUTTHEDERIVATIVESUSEDBY
THE'ROUPANDOUTSTANDINGASATTHEENDOFTHElNANCIALYEARISPROVIDEDBELOW
` in Crore
Directors’
Report
/THERlNANCIAL!SSETS,IABILITIES March 31, 2019 March 31, 2018
Derivatives not designated as hedging instruments
&OREIGNEXCHANGEFORWARDCONTRACTS
,OANS
/THERlNANCIAL,IABILITIES (13.05)
Management’s
&OREIGNEXCHANGEFORWARDCONTRACTS
#RUDE0RODUCT,IABILITIES -
&OREIGN%XCHANGECURRENCYSWAP (236.02)
#OMMODITY&ORWARD#ONTRACTS -
Derivatives designated as hedging instruments
Responsibility Report
&OREIGNEXCHANGEFORWARDCONTRACTS
,OANS (9.33)
#OMMODITY&ORWARD#ONTRACTS
-ARGIN(EDGING 35.56
Business
(ii) Hedging activities
4HEPRIMARYRISKSMANAGEDUSINGDERIVATIVEINSTRUMENTSAREFOREIGNCURRENCYRISKANDCOMMODITYPRICERISK
Commodity Price Risk Report on Corporate
4HE'ROUPBUYSCRUDEANDSELLSPETROLEUMPRODUCTSLINKEDTOINTERNATIONALBENCHMARKPRICESANDTHESEBENCHMARKPRICESDONOT
Governance
MOVEINTANDEM4HISEXPOSESTHE'ROUPTOTHERISKOFVARIATIONINCRACKSPREADSIEDECREASEINTHEDIFFERENCEBETWEENTHEPRICEOF
ARElNEDPRODUCTANDTHEPRICEOFCRUDE
4HERISKOFFALLINCRACKSPREADSOFCERTAINPETROLEUMPRODUCTSINHIGHLYPROBABLEFORECASTSALETRANSACTIONSISHEDGEDBYUNDERTAKING
CRACKSPREADFORWARDCONTRACTS4HE'ROUPWANTSTOPROTECTTHEREALIZATIONOFMARGINSANDTHEREFORETOMITIGATETHISRISKTHE'ROUPIS
financial
TAKINGTHECRACKSPREADFORWARDCONTRACTSTOHEDGETHEMARGINONHIGHLYPROBABLEFORECASTSALEINFUTURE2ISKMANAGEMENTACTIVITIES
AREUNDERTAKENIN/4#MARKETIETHESEARETHEBILATERALCONTRACTSWITHREGISTEREDCOUNTERPARTIES
Consolidated
Statements
statements
Financial
!LLTHESEHEDGESAREACCOUNTEDFORASCASHmOWHEDGES
394 Indian Oil Corporation Limited 2nd Integrated Annual Report
4HEIMPACTOFTHEHEDGINGINSTRUMENTSONTHE"ALANCE3HEETISASUNDER
`IN#RORE
March 31, 2019 Foreign exchange Foreign exchange forward Commodity forward
forward contracts- contracts- Crude/Product contracts- Margin
Loans Liablities Hedging
.OMINALAMOUNT
Carrying amount
,INEITEMINTHE"ALANCE3HEETTHATSINCLUDES(EDGING Other Current .! Other Current
Instruments &INANCIAL,IABILITIES &INANCIAL!SSETS
#HANGEINFAIRVALUEUSEDFORMEASURINGINEFFECTIVENESS
FORTHEPERIOD&9
'AIN,OSS
60th Annual Report 2018-19 395
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 41 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Chairman’s Desk
Hedge Items
4HEIMPACTOFTHE(EDGED)TEMSONTHE"ALANCE3HEETISASFOLLOWS
From the
`IN#RORE
March 31, 2019 Loans Crude/Product Margin
Liablities Hedging
"ALANCEIN#ASHmOWHEDGERESERVEASATTHEENDOFTHEYEARFORCONTINUINGHEDGES
About IndianOil
#HANGE IN VALUE OF THE HEDGED ITEMS USED FOR MEASURING INEFFECTIVENESS FOR THE PERIOD &9
'AIN,OSS
4HEEFFECTOFTHECASHmOWHEDGEINTHE3TATEMENTOF0ROlTAND,OSSAND/THER#OMPREHENSIVE)NCOMEISASFOLLOWS
`IN#RORE
FY 2018-19 Foreign exchange Foreign exchange Highly
Description of
forward contracts- forward contracts- Crude/ probable
Loans Product Liablities forecast sales
Capitals
4OTALHEDGINGGAINLOSS RECOGNISEDIN/#)
)NCOMETAXONABOVE
)NEFFECTIVENESSRECOGNISEDINPROlTORLOSS
Board of
)NCOMETAXONABOVE
,INEITEMINTHESTATEMENTOFPROlTORLOSSTHATINCLUDESTHE /THER%XPENSES /THER%XPENSES 2EVENUEFROM
RECLASSIlCATIONADJUSTMENTS Operations
B. Credit risk
Directors’
Trade Receivables
Report
#USTOMERCREDITRISKISMANAGEDBYEACHBUSINESSUNITSUBJECTTOTHE'ROUPSESTABLISHEDPOLICYPROCEDURESANDCONTROLRELATING
TOCUSTOMERCREDITRISKMANAGEMENT#REDITQUALITYOFACUSTOMERISASSESSEDBASEDONANEXTENSIVECREDITRATINGSCORECARDAND
Management’s
WHEREVERREQUIRED
!NIMPAIRMENTANALYSISISPERFORMEDATEACHREPORTINGDATEONANINDIVIDUALBASISFORMAJORCLIENTS)NADDITIONALARGENUMBER
OF MINOR RECEIVABLES ARE GROUPED INTO HOMOGENOUS GROUPS AND ASSESSED FOR IMPAIRMENT COLLECTIVELY 4HE MAXIMUM EXPOSURE TO
CREDITRISKATTHEREPORTINGDATEISTHECARRYINGVALUEOFEACHCLASSOFlNANCIALASSETSDISCLOSEDIN.OTE4HE'ROUPEVALUATESTHE
Responsibility Report
CONCENTRATIONOFRISKWITHRESPECTTOTRADERECEIVABLESASLOWASITSCUSTOMERSARELOCATEDINSEVERALJURISDICTIONSANDINDUSTRIESAND
OPERATEINLARGELYINDEPENDENTMARKETS
`IN#RORE
Business
0 - 90 days 91 days to 6 Above 6 months Above 1 Year > 3 years Total
months to 1 Year to 3 Years
Year ended March 31, 2019
'ROSS#ARRYINGAMOUNT Report on Corporate
%XPECTEDCREDITLOSSES
3PECIlC0ROVISION
Governance
`IN#RORE
On demand Less than 3 3 to 12 1 to 5 years > 5 years Total
months months
Year ended March 31, 2019
"ORROWINGS
4RADEPAYABLES
/THERlNANCIALLIABILITIES
$ERIVATIVES
35,151.05 73,138.96 29,746.76 36,570.20 3,198.28 177,805.25
Year ended March 31, 2018
"ORROWINGS
4RADEPAYABLES
/THERlNANCIALLIABILITIES
$ERIVATIVES
34,938.19 57,994.30 20,622.22 17,230.21 6,363.77 137,148.69
D. Excessive risk concentration
#ONCENTRATIONSARISEWHENANUMBEROFCOUNTERPARTIESAREENGAGEDINSIMILARBUSINESSACTIVITIESORACTIVITIESINTHESAMEGEOGRAPHICAL
REGIONORHAVEECONOMICFEATURESTHATWOULDCAUSETHEIRABILITYTOMEETCONTRACTUALOBLIGATIONSTOBESIMILARLYAFFECTEDBYCHANGESIN
ECONOMICPOLITICALOROTHERCONDITIONS#ONCENTRATIONSINDICATETHERELATIVESENSITIVITYOFTHE'ROUPSPERFORMANCETODEVELOPMENTS
AFFECTINGAPARTICULARINDUSTRY
)NORDERTOAVOIDEXCESSIVECONCENTRATIONSOFRISKTHE'ROUPSPOLICIESANDPROCEDURESINCLUDESPECIlCGUIDELINESTOFOCUSONTHE
MAINTENANCEOFADIVERSIlEDPORTFOLIO)DENTIlEDCONCENTRATIONSOFCREDITRISKSARECONTROLLEDANDMANAGEDACCORDINGLY
E. Collateral
!S'ROUPHASBEENRATEDINVESTMENTGRADEBYVARIOUSDOMESTICANDINTERNATIONALRATINGAGENCIESTHEREHASBEENNOREQUIREMENTOF
SUBMITTINGANYCOLLATERALFORBOOKINGOFDERIVATIVECONTRACTS'ROUPUNDERTAKESDERIVATIVESCONTRACTONLYWITHTHOSECOUNTERPARTIES
THAT HAVE CREDIT RATING ABOVE THE INTERNALLY APPROVED THRESHOLD RATING !CCORDINGLY 'ROUP DOES NOT SEEK ANY COLLATERALS FROM ITS
COUNTERPARTIES
60th Annual Report 2018-19 397
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 42 : CAPITAL MANAGEMENT
Chairman’s Desk
&ORTHEPURPOSEOFTHE'ROUPSCAPITALMANAGEMENTCAPITALINCLUDESISSUEDEQUITYCAPITALSHAREPREMIUMANDALLOTHEREQUITYRESERVES
ATTRIBUTABLETOTHEEQUITYHOLDERSOFTHEPARENT4HEPRIMARYOBJECTIVEOFTHE'ROUPSCAPITALMANAGEMENTISTOMAXIMISETHESHAREHOLDER
From the
VALUE
4HE 'ROUP MANAGES ITS CAPITAL STRUCTURE AND MAKES ADJUSTMENTS IN LIGHT OF CHANGES IN ECONOMIC CONDITIONS AND REQUIREMENTS 4O
MAINTAINORADJUSTTHECAPITALSTRUCTURETHE'ROUPMAYADJUSTTHEDIVIDENDPAYMENTTOSHAREHOLDERSRETURNCAPITALTOSHAREHOLDERSOR
ISSUENEWSHARES4HE'ROUPMONITORSCAPITALUSINGDEBTEQUITYRATIOWHICHISBORROWINGSDIVIDEDBY%QUITY4HE'ROUPSENDEAVOURIS
About IndianOil
TOKEEPTHEDEBTEQUITYRATIOAROUND
`IN#RORE
March 31, 2019 March 31, 2018
Borrowings 96,765.04
Equity Share Capital 9,181.04
Description of
Reserves and Surplus 1,03,288.20
Capitals
Equity 1,12,469.24
Debt Equity Ratio 0.86 : 1
Board of
Directors’
Report
Discussion & Analysis
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
398 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 43 : DISCLOSURE ON GOVERNMENT GRANTS (Contd...)
Chairman’s Desk
2 DBTL Capital Grant
From the
4HE'ROUPHASRECEIVED'OVERNMENTGRANTFORROLLOUTOF$"4,SCHEMELAUNCHEDBY-/0.'TOWARDSDEVELOPMENTACQUISITIONOF
SOFTWARELICENSESDATAPROCESSINGEQUIPMENTFOREFFECTIVEIMPLEMENTATIONOFPLATFORMFORDISPESNINGOFSUBSIDYTOCUSTOMERS
PURCHASING,0'UNDER$"4,SCHEME4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHISNIL.), $URING
THEYEARTHE'ROUPHASRECOGNISEDNIL`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITALGRANTS
3 Capital Grant in respect of Excise duty,Custom duty and GST waiver
About IndianOil
4HE'ROUPHASRECEIVEDGRANTINRESPECTOF#USTOMDUTYWAIVERONIMPORTONCAPITALGOODS%XCISEDUTYWAIVERAND'34WAIVER
ONPURCHASEOFGOODSFROMLOCALMANUFACTURERIN)NDIAUNDERTHECERTIlCATEISSUEDBY$EPARTMENTOF3CIENTIlCAND)NDUSTRIAL
2ESEARCH$3)2 4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`52.52 crore `CRORE 4HE
GOODSSOIMPORTEDORPROCUREDFROMLOCALMANUFACTURERSHALLNOTBETRANSFERREDORSOLDFORAPERIODOFlVEYEARSFROMDATEOF
INSTALLATION$URINGTHEYEARTHE'ROUPHASRECOGNISED`7.41 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSAS
AMORTISATIONOFCAPITALGRANTS
Description of
4 Capital Grant in respect of Research projects
Capitals
4HE'ROUPHASRECEIVEDCAPITALGRANTFROMVARIOUSAGENCIESINRESPECTOFPROCUREMENTSETTINGUPOF#APITALASSETSFORRESEARCH
PROJECTSUNDERTAKEN4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`13.61 crore`CRORE
Board of
%NTRY4AXEXEMPTIONRECEIVEDFROM/DISHA'OVERNMENTFOR0ARADIP2ElNERY0ROJECTHASBEENRECOGNIZEDAS#APITAL'RANTAND
GROSSEDUPWITHTHECONCERNED!SSETS4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`116.31 crore
`CRORE $URINGTHEYEARTHE'ROUPHASRECOGNISED`5.29 crore`CRORE INTHESTATEMENTOFPROlTANDLOSS
ASAMORTISATIONOFCAPITALGRANTS
6 Capital Grant in respect of demonstration unit
Directors’
Report
'RANTRECEIVEDFROM/)$"FORSETTINGUPOFDEMONSTRATIONUNITAT'UWAHATIRElNERYWITHTHE'ROUPS2$DEVELOPED)NDA$EPT'
TECHNOLOGY4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`78.65 crore`CRORE $URINGTHE
Management’s
7 Capital Grant in respect of interest subsidy
4HE'ROUPHASRECEIVEDCAPITALGRANTINRESPECTOFINTERESTSUBSIDYONLOANSTAKENFROM/)$"4HEUNAMORTIZEDCAPITALGRANT
AMOUNTASON-ARCHIS`6.21 crore`CRORE $URINGTHEYEARTHE'ROUPHASRECOGNISED`0.27 crore
`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITALGRANTS
Responsibility Report
8 Capital Grant in form of Interest Free Loan
4HE'ROUPHASRECEIVEDCAPITALGRANTINTHEFORMOFINTERESTFREELOANSFROM/RISSA'OVERNMENTFORAPERIODOFYEARS4HE
Business
UNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`1,352.98 crore`CRORE $URINGTHEYEARTHE'ROUP
has recognised `78.56 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSACCOUNTASAMORTISATIONOFCAPITALGRANTS
9 Capital Grant in respect of Solar Power Generation
Report on Corporate
4HE'ROUPHASRECEIVEDCAPITALlNANCIALASSISTANCEFROM-INISTRYOF.EWAND2ENEWABLE%NERGYINRESPECTOFPROCUREMENTAND
Governance
10 Capital Grant in respect of Hydrogen blended Natural Gas project at Rajghat DTC
4HE'ROUPHASRECEIVEDCAPITALGRANTOF`6.00 crore .), TOCARRYOUTITSSTUDYPILOTPROJECTOFHYDROGENBLENDED#.'
Consolidated
AMORTIZEDANYAMOUNTINSTATEMENTOF0ROlT,OSSACCOUNTASTHEPROJECTISUNDEREXECUTION
400 Indian Oil Corporation Limited 2nd Integrated Annual Report
Bifurcation of Total Revenue into Revenue from contract with customers and other sources of revenue as per requirement of Ind AS is
given below;
` in Crore
March 31, 2019 March 31, 2018
4OTAL2EVENUE!% 6,17,242.84
2EVENUEFROMCONTRACTWITHCUSTOMERS! 6,09,708.88
2ECOGNISEDFROMCONTRACTLIABILITYBALANCEOFPREVIOUSYEAR" 2,896.82
2ECOGNISEDFROMPERFORMANCEOBLIGATIONSATISlEDINPREVIOUSYEARS# -
2ECOGNISEDFROMCONTRACTSINITIATEDINCURRENTYEAR$ 6,06,812.06
2EVENUEFROMOTHERCONTRACTSFROMOTHERS% 7,533.96
!N AMOUNT OF `58.67 crore ` CRORE ON ACCOUNT OF IMPAIRMENT LOSSES ON RECEIVABLES IS RECOGNISED UNDER 0ROVISION FOR
$OUBTFUL$EBTS!DVANCES#LAIMS#7)03TORESETC2EFER.OTE
4HE 'ROUP DISCLOSE INFORMATION ON REPORTABLE SEGMENT AS PER )ND !3 UNDER .OTE
3EGMENTAL )NFORMATION !N AMOUNT OF
`108.82 croreISRECOGNISEDOVERTIMEUNDER2EVENUEFROMCONTRACTWITHCUSTOMERS
Receivables Contract Asset Contract Liability
Opening Balance
Closing Balance
4HEPERFORMANCEOBLIGATIONISPARTOFTHECONTRACTANDTHEORIGINALEXPECTEDDURATIONISONEYEARORLESSINCASEOFDELIVEREDSALESADVANCE
FROMCUSTOMERS)NCASEOFCONSTRUCTIONCONTRACTSDEPOSITWORKSTHE#OMPANYHASARIGHTTOCONSIDERATIONFROMCUSTOMERTHATCORRESPOND
DIRECTLYWITHTHEVALUEOFTHEENTITYSPERFORMANCECOMPLETEDFORTHECUSTOMER
2EVENUE IN CASES OF PERFORMANCE OBLIGATION RELATED TO DELIVERED SALES AND ADVANCE FROM CUSTOMERS ARE RECOGNISED IN TIME BASED ON
DELIVERYOFIDENTIlEDANDACTUALGOODSANDNOSIGNIlCANTJUDGEMENTISINVOLVED2EVENUEINCASEOFCONSTRUCTIONCONTRACTSDEPOSITWORKS
ARERECOGNISEDOVERTIMEUSINGINPUTBASEDONCOSTINCURRED2EVENUEINCASEOF.ON2EFUNDABLE2/$EPOSITISRECOGNISEDONTIME
PROPORTIONBASIS
)NDIAN!CCOUNTING3TANDARD)ND!3
h2EVENUEFROM#ONTRACTSWITH#USTOMERSvBECAMEEFFECTIVEFROM!PRILANDTHE'ROUP
HASADOPTEDTHESAMEUSINGCUMULATIVECATCH
UPTRANSITIONMETHOD4HISADOPTIONHASREDUCED2EVENUEFROM/PERATIONFORTHECURRENT
year by `25.37 crore.
60th Annual Report 2018-19 401
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 45 : STATEMENT OF SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES, JV’S AND
Chairman’s Desk
ASSOCIATES (FORM AOC - I)
From the
Part “A”: Subsidiaries
` in Crore
Sl. No. 1 2 3 4 5 6 7 8 9
Name of the Subsidiary Chennai Indian IndianOil Lanka IOC IOC Middle IOC IOCL (USA) IndOil IOCL
Petroleum Catalyst (Mauritius) PLC East FZE Sweden Inc. Global BV. Singapore
About IndianOil
Corporation Private Limited AB PTE
Limited Limited Limited
$ATESINCEWHENSUBSIDIARY -ARCH *UNE /CTOBER !UGUST !PRIL &EBRUARY /CTOBER &EBRUARY -AY
WASACQUIRED
Reporting Currency ).2 ).2 -52 SLR !%$ %52/ 53$ #!$ 53$
%XCHANGE2ATE).2
#LOSINGASON-ARCH
Description of
!VERAGE2ATE
Capitals
Share Capital
Other Equity
Liabilities
Board of
4URNOVER
0ROlT"EFORE4AXATION
0ROVISIONFOR4AXATION
0ROlT!FTER4AXATION
0ROPOSED$IVIDEND
Directors’
0ERCENTAGEOFSHAREHOLDING
Report
).2 )NDIAN2UPEES
Management’s
!%$ 5NITED!RAB%MIRATES$IRHAM
53$ 5NITED3TATES$OLLARS
#!$ #ANADIAN$OLLARS
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
402 Indian Oil Corporation Limited 2nd Integrated Annual Report
2 Latest Audited Balance -ARCH -ARCH -ARCH -ARCH -ARCH
3HEET$ATE
3 $ATEOFWHICH !UGUST !PRIL $ECEMBER /CTOBER !UGUST
Associate or Joint
6ENTUREWASASSOCIATED
or acquired
4 3HARESOF!SSOCIATE
*OINT6ENTURESHELDBY
the company on the
year end
I.O
II!MOUNTOF
Investment in
Associates/Joint
6ENTURE
III%XTENTOF(OLDING
$ESCRIPTIONOFHOW Joint Control Joint Control Joint Control Joint Control Joint Control
THEREISSIGNIlCANT
INmUENCE
2EASONWHYTHE Consolidated Consolidated Consolidated Consolidated Consolidated
ASSOCIATEJOINTVENTURE
is not consolidated
.ETWORTHATTRIBUTABLE
to Shareholding as per
latest audited Balance
Sheet
8 0ROlT,OSS FORTHE
YEAR!FTER4AX
I#ONSIDEREDIN
Consolidation
II.OT#ONSIDEREDIN
Consolidation
60th Annual Report 2018-19 403
About the
Report
Chairman’s Desk
`IN#RORE
From the
Suntera Nigeria 205 Delhi Aviation Fuel Indian Synthetic Indian Oil Ruchi
NPCIL - IndianOil GSPL India Indradhanush Gas
Ltd. Facility Private Rubber Private Nuclear Energy Transco Limited
Biofuels LLP Grid Limited
Limited Limited Corporation
Limited
$ECEMBER -ARCH -ARCH -ARCH -ARCH -ARCH -ARCH
About IndianOil
-AY -ARCH *ULY -AY !PRIL -ARCH !UGUST
Description of
Capitals
#APITAL&UND
Directors’
Report
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
404 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
Chairman’s Desk
`IN#RORE
From the
Hinduatan 2ATNAGIRI2ElNERY Avi-Oil India Private Petronet VK Limited Petronet LNG Petronet India
Urvarak and & Petrochemicals Limited Limited Limited
Rasayan Limited Limited
-ARCH -ARCH -ARCH -ARCH -ARCH -ARCH
About IndianOil
*UNE 3EPTEMBER .OVEMBER -AY !PRIL -AY
Description of
Capitals
Board of
Directors’
Report
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
406 Indian Oil Corporation Limited 2nd Integrated Annual Report
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 46 : ADDITIONAL INFORMATION FOR CONSOLIDATED FINANCIAL STATEMENTS AS PER SCHEDULE-III TO
Chairman’s Desk
COMPANIES ACT, 2013 (Contd...)
From the
Name of the Enity Net Assets 3HAREIN0ROlTLOSS Share in Other Share in Total
after Tax Comprehensive Income Comprehensive Income
As % of Amount As % of Amount As % of Amount As % of Amount
Total (` in crore) Total (` in crore) Total (` in crore) Total (` in crore)
'30,)NDIA'ASNET,IMITED
About IndianOil
)NDIAN/IL!DANI'AS
0RIVATE,IMITED
-UMBAI!VIATION&UEL
&ARM&ACILITY0RIVATE
Limited
Description of
+OCHI3ALEM0IPELINES
0RIVATE,IMITED
Capitals
)NDIAN/IL,.'0RIVATE
Limited
(INDUATAN5RVARAKAND
Board of
0ETROCHEMICALS,IMITED
)NDRADHANUSH'AS'RID
Limited
Foreign
3UNTERA.IGERIA,TD
Directors’
Report
Associates
Indian
Management’s
0ETRONET6+,IMITED
0ETRONET,.',IMITED
0ETRONET)NDIA,IMITED
Responsibility Report
Intra Group Eliminations
TOTAL 100.00% 1,12,469.24 100.00% 17,376.70 100.00% (2,654.43) 100.00% 14,722.26
Note:
Business
&IGURESINRESPECTOF*OINT/PERATIONSASMENTIONEDIN.OTEHAVEBEENINCLUDEDINTHElNANCIALSTATEMENTSOF)NDIAN/IL
#ORPORATION,TD3UBSIDIARY#OMPANIESANDINRESPECTOFOTHER*OINT6ENTURES!SSOCIATESOF3UBSIDIARY#OMPANIESTHESAME
HASBEENINCLUDEDINTHElNANCIALSTATEMENTSOFRESPECTIVESUBSIDIARYCOMPANY Report on Corporate
&OLLOWING#OMPANIESHAVENOTBEENCONSOLIDATEDINTHECONSOLIDATEDlNANCIALSTATEMENTSASTHE-ANAGEMENTHASDECIDEDTO
Governance
EXITFROMTHESE%NTITIESANDPROVIDEDFORFULLDIMUNITIONINVALUEOFINVESTMENT
A 0ETRONET#),TD*OINT6ENTURE
B )NDIAN/IL0ANIPAT0OWER#ONSURTIUM,TD*OINT6ENTURE
financial
About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 48 : OTHER DISCLOSURES
Chairman’s Desk
)NTHEMATTEROF50%NTRY4AXCONSEQUENTUPON(ONBLE!LLAHABAD(IGH#OURTORDERDTD-AY0ARENT#OMPANYHASPAID
TOTALOUTSTANDINGPRINCIPALAMOUNTOFENTRYTAXANDCHALLENGEDTHEINTERESTAMOUNT!SPERTHELATESTSTATUSINTHEMATTER(ONBLE
From the
3UPREME#OURTUNDERITSORDERDATED!PRILREMANDEDTHEMATTERBACKTO(ONBLE!LLAHABAD(IGH#OURTTODECIDETHE
INTERESTAFRESHONMERIT!CCORDINGLY0ARENT#OMPANYlLEDSTAYAPPLICATIONIN(ONBLE!LLAHABAD(IGH#OURTON!PRILFOR
STAYOFINTERESTDEMANDRAISEDBYCOMMERCIALTAXDEPARTMENT4HEINTERESTLIABILITYINTHISREGARDHASBEENFULLYPROVIDEDFORINTHE
BOOKSOFACCOUNT
About IndianOil
$URINGTHEYEAR0ARENT#OMPANYHASSETTLEDITSLIABILITYFORENTRYTAXINTHE3TATEOF"IHARCONSEQUENTTOTHEORDEROF#OMMERCIAL4AX
4RIBUNAL0ATNAONDIRECTIONBY(ONBLE3UPREME#OURT ANDACCORDINGLYANAMOUNTOF`1,155.02 croreBEINGPROVISIONNOMORE
REQUIREDHASBEENWRITTENBACKANDINCLUDEDINPROVISIONFORCONTINGENCIESWRITTENBACKIN/THER/PERATING2EVENUE
4HEREVISIONOF%MPLOYEES0AYAND!LLOWANCESWASDUEWEF*ANUARY"ASEDONPRESIDENTIALDIRECTIVEISSUEDON/CTOBER
DUESINRESPECTOFEXECUTIVESHAVEBEENSETTLED(OWEVERTHEREVISIONOFPAYANDALLOWANCESFORWORKMENISUNDERlNALISATION
WHERELIABILITIESHAVEBEENASCERTAINEDONSIMILARLINES!NAMOUNTOF`1,719.00 Crore HASBEENCARRIEDASLIABILITYASON-ARCH
Description of
TOWARDSDUESONTHISACCOUNTBYTHE'ROUP
Capitals
'OODSAND3ERVICES4AX'34 HASBEENIMPLEMENTEDWEF*ULYWHEREINSOMEOFTHEPETROLEUMPRODUCTSARESTILLOUTSIDEITS
AMBIT!CCORDINGLY'34ISBEINGLEVIEDONSOMEPRODUCTSASAGAINST%XCISE$UTYAPPLICABLEHITHERTO3INCEEXCISEDUTYISINCLUDED
INREVENUEAND'34ISNOTINCLUDEDINREVENUE4HUSTOENSURECOMPARABILITYONAPPLICABLEPRODUCTSSALESEXCLUDINGEXCISEDUTYIS
Board of
FUNDANDTHEAMOUNTDEPOSITEDINEXCESSOFLEAVEENCASHMENTLIABILITYISSHOWNUNDER!DVANCETO%MPLOYEE"ENElT4RUST&UND
2EFER.OTE
$URINGTHEYEARTHE0ARENT#OMPANYHASREVIEWEDITSIMPAIRMENTPOLICYFOR0ROPERTY0LANTAND%QUIPMENT00% ANDHASCHANGED
ITSESTIMATEFORCASHmOWPROJECTIONSTOYEARSASAGAINSTYEARSEARLIER4HISBEINGTHElRSTYEAROFCHANGETHE0ARENT#OMPANY
ALSOTESTEDFORIMPAIRMENTCONSIDERINGCASHmOWPROJECTIONOFYEARSWHERETHERECOVERABLEAMOUNTEXCEEDEDTHECARRYINGVALUE
Directors’
ASON-ARCH!CCORDINGLYTHEREWASNOIMPACTOFTHISCHANGEINTHEVALUEOFIMPAIRMENTAND00%DURINGTHEYEAR
Report
)NORDERTOPROVIDECLEANCOOKINGFUELTO"0,FAMILIES'OVERNMENTHASAPPROVEDh0RADHAN-ANTRI5JJWALA9OJANA0-59 vSCHEME
WHERE FREE ,0' CONNECTIONS ARE ISSUED BY /IL -ARKETING #OMPANIES /-#S TO THE WOMEN BELONGING TO THE "ELOW 0OVERTY ,INE
Management’s
WASALSOEXTENDEDFORMALESWHERETHEREISNOWOMENINTHEFAMILY!SPERTHESCHEMETHEINITIALCOSTTOWARDSCONNECTIONCHARGES
2EFUNDABLEDEPOSIT WOULDBEBORNEBYTHE#ENTRAL'OVERNMENTFOREACHCARDHOLDER&EW3TATE'OVTSHASALSOEXTENDEDTHISSCHEME
TOOTHERBENEFECIARIES!SPERTHESCHEME/-#SWOULDPROVIDEANOPTIONFOR%-),OANSTOWARDSCOSTOFBURNERANDstRElLLTOTHE
0-59CONSUMERS4HELOANAMOUNTISTOBERECOVEREDFROMTHESUBSIDYAMOUNTPAYABLEBYTHEGOVERNMENTTOTHECUSTOMERSONEACH
RElLLSALE$URINGTHEYEARDISCOUNTINGOFTHELOANHASBEENDONEBASEDONASSUMPTIONOFRElLLSINAYEARANDAVERAGESUBSIDYOF
Responsibility Report
`PERCYLINDERASLOANRECOVERY
4HEAMOUNTOFOUTSTANDINGASON-ARCHTOWARDS0-59CLAIMFROM#ENTRAL'OVERNMENTIS`1,495.63 Crore`
#ROREASON-ARCH ANDLOANFROM0-59CONSUMERSIS`3,111.32 Crore`#ROREASON-ARCH NETOF
Business
RECOVERYTHROUGHSUBSIDY !GAINSTTHEABOVELOANAPROVISIONFORDOUBTFULAMOUNTINGTO`1,141.71 Crore`#RORE
HASBEENCREATEDASON-ARCHAGAINSTTHEBENElCIARIESWHOHAVENOTTAKENANYRElLLDURINGPASTSIXMONTHS
0ARENT#OMPANYHASDECIDEDTOEXITTHE*OINT6ENTUREWITH)NDIAN/IL2UCHI"IOFUELS,,0ANDHASGIVENNOTICEOFITSEXITFROMTHE Report on Corporate
PROVISIONMADEFORDIMUNITIONINVALUEOFINVESTMENTINPASTOF`#ROREINEARLIERYEARISWRITTENBACKINOTHERINCOME2EFER
.OTE
Consolidated financial
Statements
statements
Financial
410 Indian Oil Corporation Limited 2nd Integrated Annual Report
0LACE.EW$ELHI
$ATE-AY
60th Annual Report 2018-19 411
About the
Report
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b)
OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF INDIAN OIL CORPORATION
LIMITED FOR THE YEAR ENDED 31 MARCH 2019
Chairman’s Desk
From the
4HEPREPARATIONOFlNANCIALSTATEMENTSOF)NDIAN/IL#ORPORATION,IMITEDFORTHEYEARENDED-ARCHINACCORDANCEWITHTHE
lNANCIALREPORTINGFRAMEWORKPRESCRIBEDUNDERTHE#OMPANIES!CT!CT ISTHERESPONSIBILITYOFTHEMANAGEMENTOFTHE#OMPANY
4HE STATUTORY AUDITORS APPOINTED BY THE #OMPTROLLER AND !UDITOR 'ENERAL OF )NDIA UNDER SECTION OF THE !CT ARE RESPONSIBLE
FOREXPRESSINGOPINIONONTHElNANCIALSTATEMENTSUNDERSECTIONOFTHE!CTBASEDONINDEPENDENTAUDITINACCORDANCEWITHTHE
STANDARDSONAUDITINGPRESCRIBEDUNDERSECTION OFTHE!CT4HISISSTATEDTOHAVEBEENDONEBYTHEMVIDETHEIR!UDIT2EPORT
About IndianOil
DATED-AY
)ONBEHALFOFTHE#OMPTROLLERAND!UDITOR'ENERALOF)NDIAHAVECONDUCTEDASUPPLEMENTARYAUDITOFTHElNANCIALSTATEMENTSOF)NDIAN
/IL#ORPORATION,IMITEDFORTHEYEARENDED-ARCHUNDERSECTION A OFTHE!CT4HISSUPPLEMENTARYAUDITHASBEENCARRIED
OUTINDEPENDENTLYWITHOUTACCESSTOTHEWORKINGPAPERSOFTHESTATUTORYAUDITORSANDISLIMITEDPRIMARILYTOINQUIRIESOFTHESTATUTORY
AUDITORSANDCOMPANYPERSONNELANDASELECTIVEEXAMINATIONOFSOMEOFTHEACCOUNTINGRECORDS
/NTHEBASISOFMYSUPPLEMENTARYAUDITNOTHINGSIGNIlCANTHASCOMETOMYKNOWLEDGEWHICHWOULDGIVERISETOANYCOMMENTUPONOR
Description of
SUPPLEMENTTOSTATUTORYAUDITORSREPORTUNDERSECTION B OFTHE!CT
Capitals
Directors and others
Board of
For and on behalf of the
Comptroller & Auditor General of India
Directors’
Report
3D
Management’s
Place : New Delhi %X
OFlCIO-EMBER!UDIT"OARD
))
Date : July 8, 2019 New Delhi
Responsibility Report
Business
Report on Corporate
Governance
Comments
Statements
Financial
CAG
412 Indian Oil Corporation Limited 2nd Integrated Annual Report
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b)
READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF INDIAN OIL CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2019
4HEPREPARATIONOFCONSOLIDATEDlNANCIALSTATEMENTSOF)NDIAN/IL#ORPORATION,IMITEDFORTHEYEARENDED-ARCHINACCORDANCE
WITHTHElNANCIALREPORTINGFRAMEWORKPRESCRIBEDUNDERTHECOMPANIESACT!CT ISTHERESPONSIBILITYOFTHEMANAGEMENTOFTHE
COMPANY 4HE STATUTORY AUDITORS APPOINTED BY THE #OMPTROLLER AND !UDITOR 'ENERAL OF )NDIA UNDER SECTION READ WITH SECTION
OFTHEACTARERESPONSIBLEFOREXPRESSINGOPINIONONTHElNANCIALSTATEMENTSUNDERSECTIONREADWITHSECTION OFTHE
!CTBASEDONINDEPENDENTAUDITINACCORDANCEWITHTHESTANDARDSONAUDITINGPRESCRIBEDUNDERSECTION OFTHE!CT4HISISSTATED
TOHAVEBEENDONEBYTHEMVIDETHEIR!UDIT2EPORTDATED-AY
) ON BEHALF OF THE #OMPTROLLER AND !UDITOR 'ENERAL OF )NDIA HAVE CONDUCTED A SUPPLEMENTARY AUDIT OF THE CONSOLIDATED lNANCIAL
STATEMENTSOF)NDIAN/IL#ORPORATION,IMITEDFORTHEYEARENDED-ARCHUNDERSECTION A READWITHSECTION
OFTHE!CT7ECONDUCTEDASUPPLEMENTARYAUDITOFlNANCIALSTATEMENTSOFCOMPANIESMENTIONEDIN!NNEXURE!BUTDIDNOTCONDUCT
SUPPLEMENTARYAUDITOFlNANCIALSTATEMENTSOFCOMPANIESMENTIONEDIN!NNEXURE"FORTHEYEARENDEDONTHATDATE&URTHER3ECTION
AND 3ECTION A OF THE !CT ARE NOT APPLICABLE TO THE COMPANIES MENTIONED IN !NNEXURE
# BEING PRIVATE ENTITIES
ENTITIES INCORPORATED IN FOREIGN COUNTRIES UNDER THE RESPECTIVE LAWS FOR APPOINTMENT OF THEIR STATUTORY AUDITORS AND FOR CONDUCT OF
SUPPLEMENTARYAUDIT!CCORDINGLY#OMPTROLLERAND!UDITOR'ENERALOF)NDIAHASNEITHERAPPOINTEDTHESTATUTORY!UDITORSNORCONDUCTED
THESUPPLEMENTARYAUDITOFTHESECOMPANIES4HISSUPPLEMENTARYAUDITHASBEENCARRIEDOUTINDEPENDENTLYWITHOUTACCESSTOTHEWORKING
PAPERSOFTHESTATUTORYAUDITORSANDISLIMITEDPRIMARILYTOINQUIRIESOFTHESTATUTORYAUDITORSANDCOMPANYPERSONNELANDASELECTIVE
EXAMINATIONOFSOMEOFTHEACCOUNTINGRECORDS
/NTHEBASISOFMYSUPPLEMENTARYAUDITNOTHINGSIGNIlCATIONHASCOMETOMYKNOWLEDGEWHICHWOULDGIVERISETOANYCOMMENTUPONOR
SUPPLEMENTTOSTATUTORYAUDITORSREPORTUNDERSECTION B OFTHE!CT
3D
(Nandana Munshi)
Director General of Commercial Audit
Place : New Delhi %X
OFlCIO-EMBER!UDIT"OARD
))
Date : July 11, 2019 New Delhi
60th Annual Report 2018-19 413
About the
Report
Annexure-A
Name of the company/subsidiary/JV/Associate companies of which supplementary audit conducted
Sl. No. Name of the Joint Venture/Subsidiary Type of the Company
Chairman’s Desk
)NDIAN/IL#ORPORATION,IMITED)/#, Holding Company
#HENNAI0ETROLEUM#ORPORATION,IMITED Subsidiary
From the
)NDIAN#ATALYST0VT,IMITED&ORMERLY)NDO#AT0RIVATE,TD Subsidiary
'REEN'AS,IMITED Joint venture
-UMBAI!VIATION&UEL&ACILITY0RIVATE,IMITED Joint venture
'30,)NDIA4RANSCO,IMITED Joint venture
About IndianOil
'30,)NDIA'ASNET,IMITED Joint venture
$ELHI!VIATION&UEL&ACILITY0RIVATE,IMITED Joint venture
(INDUSTAN5RVARAKAND2ASAYAN,IMITED Joint venture
0ETRONET6+,IMITED Associate
Annexure-B
Description of
Name of the company/subsidiary/JV/associate companies of which supplementary audit not conducted
Capitals
Sl. No. Name of the Joint Venture/Subsidiary Type of the Company
.0#),
)NDIAN/IL.UCLEAR%NERGY#ORPORATION,IMITED Joint venture
+OCHI3ELAM0IPELINES0RIVATE,IMITED Joint venture
Board of
Annexure-C
List of all subsidiaries/JV/associate companies to which Sec 139(5) and 143(6) (a) of Companies Act are not applicable
Sl. No. Name of the Joint Venture/Subsidiary Type of the Company
0ETRONET,.',IMITED Associate
)NDIAN/IL4ANKING,IMITED&ORMERLY)/4)NFRASTRUCTURE%NERGY3ERVICES,IMITED Joint venture
Directors’
)NDIAN/IL0ETRONAS0RIVATE,IMITED Joint venture
Report
,UBRIZOL)NDIA0RIVATE,IMITED Joint venture
!VI
/IL)NDIA0RIVATE,IMITED Associate
Management’s
)NDIAN/IL!DANI'AS0RIVATE,IMITED Joint venture
)NDIAN/IL,.'0RIVATE,IMITED Joint venture
)NDIAN/IL0ANIPAT0OWER#ONSORTIUM,IMITED Joint venture
)NDIAN/IL2UCHI"IO&UELS,,0 Joint venture
Responsibility Report
0ETRONET#),IMITED5NDERLIQUIDATION Joint venture
0ETRONET)NDIA,IMITED
Associate
4HE#OMPANYHASGONEUNDERVOLUNTARYLIQUIDATIONANDNOAPPOINTMENTOFSTATUTORYAUDITORSHASBEENMADEBYTHE#!'OF)NDIA
Business
Entities incorporated outside India
Sl. No. Name of the Joint Venture/Subsidiary Type of the Company Report on Corporate
,ANKA)/#0,# Subsidiary
)NDIAN/IL-AURITIUS ,TD Subsidiary
Governance
)/#-IDDLE%AST&:% Subsidiary
)/#3WEDEN!" Subsidiary
)/#,53! )NC Subsidiary
)ND/IL'LOBAL"6 Subsidiary
)/#,3INGAPORE0TE,IMITED Subsidiary
Comments
NOTICE
./4)#%ISHEREBYGIVENTHATTHE60 Annual General Meeting OFTHEMEMBERSOF INDIAN OIL CORPORATION LIMITEDWILLBEHELD
th
at Nehru Centre Auditorium, Dr. Annie Besant Road, Worli, Mumbai – 400018 on WednesdayTHE August 28, 2019 at 10:00 a.m. to
TRANSACTTHEFOLLOWINGBUSINESS
ORDINARY BUSINESS
4ORECEIVECONSIDERANDADOPTTHEAUDITED3TANDALONEASWELLAS#ONSOLIDATED&INANCIAL3TATEMENTOFTHE#OMPANYFORTHElNANCIAL
YEARENDED-ARCHTOGETHERWITH2EPORTSOFTHE$IRECTORSANDTHE!UDITORSTHEREON
4ODECLARETHE&INAL$IVIDENDOF`
PEREQUITYSHAREFORTHEYEAR
ANDTOCONlRMTHE)NTERIM$IVIDENDOF`PEREQUITY
SHAREPAIDDURINGTHElNANCIALYEAR
4OAPPOINTA$IRECTORINPLACEOF$R3362AMAKUMAR$). WHORETIRESBYROTATIONANDISELIGIBLEFORREAPPOINTMENT
4O APPOINT A $IRECTOR IN PLACE OF 3HRI 2ANJAN +UMAR -OHAPATRA $). WHO RETIRES BY ROTATION AND IS ELIGIBLE FOR
REAPPOINTMENT
SPECIAL BUSINESS
4ORE
APPOINT3HRI0ARINDU+"HAGAT$). ASAN)NDEPENDENT$IRECTORFORAPERIODOFONEYEAR
4OCONSIDERANDIFTHOUGHTlTTOPASSWITHORWITHOUTMODIlCATIONSTHEFOLLOWINGRESOLUTIONASASpecial Resolution:
hRESOLVED THATPURSUANTTOTHEPROVISIONSOF3ECTIONSANDREADWITH3CHEDULE)6ANDOTHERAPPLICABLEPROVISIONSIF
ANYOFTHE#OMPANIES!CTANDTHE#OMPANIES!PPOINTMENTAND1UALIlCATIONOF$IRECTORS 2ULESANDTHEAPPLICABLE
PROVISIONS OF THE 3ECURITIES AND %XCHANGE "OARD OF )NDIA ,ISTING /BLIGATIONS AND $ISCLOSURE 2EQUIREMENTS 2EGULATIONS
INCLUDING ANY STATUTORY MODIlCATIONS OR RE
ENACTMENTS THEREOF FOR THE TIME BEING IN FORCE 3HRI 0ARDINDU + "HAGAT $).
WHOWASAPPOINTEDASAN)NDEPENDENT$IRECTORFORAPERIODOFYEARSANDHELDOFlCEUPTO$ECEMBERBEAND
ISHEREBYRE
APPOINTEDASAN)NDEPENDENT$IRECTOROFTHE#OMPANYNOTLIABLETORETIREBYROTATIONFORASECONDTERMOF/NE YEAR
WEF$ECEMBERv
4ORATIFYTHEREMUNERATIONOFTHE#OST!UDITORSFORTHElNANCIALYEARENDING-ARCH
4OCONSIDERANDIFTHOUGHTlTTOPASSWITHORWITHOUTMODIlCATIONSTHEFOLLOWINGRESOLUTIONASANOrdinary Resolution:
hRESOLVED THATPURSUANTTOTHEPROVISIONSOF3ECTIONANDOTHERAPPLICABLEPROVISIONSOFTHE#OMPANIES!CTANDTHE
#OMPANIES!UDITAND!UDITORS 2ULESINCLUDINGANYSTATUTORYMODIlCATIONS ORRE
ENACTMENTTHEREOFFORTHETIMEBEINGIN
FORCETHEAGGREGATEREMUNERATIONOF`,AKHSPLUSAPPLICABLETAXESANDOUTOFPOCKETEXPENSESPAYABLETOTHE#OST!UDITORS
APPOINTEDBYTHE"OARDOF$IRECTORSOFTHE#OMPANYTOCONDUCTTHEAUDITOFTHECOSTRECORDSOFTHEVARIOUSUNITSOFTHE#OMPANYFOR
THElNANCIALYEARENDING-ARCHBEANDISHEREBYRATIlEDv
4O PROVIDE #ORPORATE 'UARANTEES TO BANKS ON BEHALF OF )NDIAN/IL
!DANI 'AS 0VT ,TD A *OINT 6ENTURE #OMPANY FOR OBTAINING
0ERFORMANCE"ANK'UARANTEESINFAVOUROF0ETROLEUM.ATURAL'AS2EGULATORY"OARDFOR#ITY'AS$ISTRIBUTION0ROJECTSINVARIOUS
'EOGRAPHICAL!REAS
4OCONSIDERANDIFTHOUGHTlTTOPASSWITHORWITHOUTMODIlCATIONSTHEFOLLOWINGRESOLUTIONASASpecial Resolution:
hRESOLVED THATPURSUANTTOTHEPROVISIONSOF3ECTIONANDOTHERAPPLICABLEPROVISIONSIFANYOFTHE#OMPANIES!CT
INCLUDINGAMENDMENTSTHEREOFGOVERNINGPROVISIONSOFTHE3ECURITIESAND%XCHANGE"OARDOF)NDIA,ISTING/BLIGATIONSAND$ISCLOSURE
2EQUIREMENTS 2EGULATIONS,ISTING2EGULATIONS !RTICLESOF!SSOCIATIONOFTHE#OMPANYALLOTHERPROVISIONSOFAPPLICABLE
LAWSRULESANDREGULATIONSANDSUBJECTTOSUCHAPPROVALSCONSENTSSANCTIONSANDPERMISSIONSASMAYBENECESSARYAPPROVALOF
60th Annual Report 2018-19 415
About the
Report
THE-EMBERSOFTHE#OMPANYBEANDISHEREBYACCORDEDTOAUTHORIZETHE"OARDOF$IRECTORSOFTHE#OMPANYWHICHEXPRESSIONSHALL
BEDEEMEDTOINCLUDEA#OMMITTEETHEREOF TOPROVIDE#ORPORATE'UARANTEES INFAVOUROFBANKSONBEHALFOF)NDIAN/IL
!DANI'AS
0VT,TD)/!'0, A*6#OMPANYFORISSUANCEOF0ERFORMANCE"ANK'UARANTEESINFAVOUROF0ETROLEUMAND.ATURAL'AS2EGULATORY
"OARDFOR#ITY'AS$ISTRIBUTION0ROJECTSINVARIOUS'EOGRAPHICAL!REASFORANAMOUNTNOTEXCEEDINGINAGGREGATE`CRORE2UPEES
Chairman’s Desk
/NE(UNDREDCROREONLY v
From the
hRESOLVED FURTHER THAT APPROVAL OF THE -EMBERS OF THE #OMPANY BE ACCORDED AUTHORIZING THE "OARD OF $IRECTORS OF THE
#OMPANY OR A #OMMITTEE THEREOF OR ANY OF THEIR DELEGATES TO DO OR CAUSE TO BE DONE ALL SUCH ACTS MATTERS DEEDS AND THINGS
INCLUDINGSIGNINGANDEXECUTINGSUCHDEEDSAGREEMENTSDOCUMENTSANDWRITINGSANDTOMAKESUCHlLINGSDEEMEDNECESSARYTO
GIVEEFFECTTOTHEABOVERESOLUTIONv
About IndianOil
Description of
2EGISTERED/FlCE By Order of the Board of Directors
IndianOil Bhavan
Capitals
'
!LI9AVAR*UNG-ARG
"ANDRA%AST
-UMBAI
Board of
Directors’
Report
Discussion & Analysis
Management’s
Responsibility Report
Business
Report on Corporate
Governance
Notice
Statements
Financial
AGM
416 Indian Oil Corporation Limited 2nd Integrated Annual Report
NOTES
A A member entitled to attend and vote at the Annual General Meeting (AGM) is entitled to appoint a proxy to attend and vote instead
of himself. Such a proxy need not be a member of the Company. Proxies, in order to be valid and effective, must be delivered
ATTHEREGISTEREDOFlCEOFTHE#OMPANYASPERATTACHEDFORMATDULYlLLEDSTAMPEDSIGNEDNOTLATERTHANHOURSBEFORETHE
commencement of the meeting.
!SPERTHEPROVISIONSOFTHE#OMPANIES!CTAPERSONCANACTASAPROXYONBEHALFOFMEMBERSNOTEXCEEDINGlFTYANDHOLDING
in the aggregate not more than ten percent of the total share capital of the Company. A member holding more than ten percent of
the total share capital of the Company may appoint a single person as proxy and such person shall not act as a proxy for any other
person or member.
B !STATEMENTSETTINGOUTTHEMATERIALFACTSPURSUANTTO3ECTION OFTHE#OMPANIES!CTRELATINGTOTHE3PECIAL"USINESS
TOBETRANSACTEDATTHE-EETINGISANNEXEDHERETO
C -EMBERS0ROXIES!UTHORISED2EPRESENTATIVESAREREQUESTEDTOBRINGTHEATTENDANCESLIPDULYlLLEDANDSIGNEDALONGWITHCOPYOF
!NNUAL2EPORTTOTHEMEETING
D 4HE!NNUAL2EPORTDULYCIRCULATEDTOTHEMEMBERSOFTHE#OMPANYISALSOAVAILABLEONTHE#OMPANYSWEBSITEATWWWIOCLCOMAND
www.iocl.com.
ALSOONTHEWEBSITESOF3TOCK%XCHANGESANDE
VOTINGAGENCY
E 2ELEVANTDOCUMENTSREFERREDTOINTHEACCOMPANYINGNOTICEAREOPENFORINSPECTIONBYTHEMEMBERSATTHE2EGISTERED/FlCEOFTHE
#OMPANYONALLWORKINGDAYSIE-ONDAYTO&RIDAYBETWEENAMANDPMUPTOTHEDATEOFTHE!'-
F The Register of members and Share Transfer Books of the Company will remain closed from Friday, August 23, 2019 to Wednesday,
!UGUSTBOTHDAYSINCLUSIVE FORTHEPURPOSEOFASCERTAININGTHEELIGIBILITYOFMEMBERSFORPAYMENTOFlNALDIVIDEND4HE
lNALDIVIDENDPAYABLEON%QUITY3HARESIFAPPROVEDBYTHEMEMBERSWILLBEPAIDTOTHOSEMEMBERSWHOSENAMESAPPEARONTHE
#OMPANYS2EGISTEROFMEMBERSANDASPERBENElCIALOWNERSPOSITIONRECEIVEDFROM.3$,#$3,ASATTHECLOSEOFWORKINGHOURS
ON!UGUST
G 2ESERVE"ANKOF)NDIAHASINITIATED.%#3.ATIONAL%LECTRONIC#LEARING3YSTEM FACILITYFORCREDITOFDIVIDENDDIRECTLYTOTHEBANK
ACCOUNTOFTHEMEMBERS(ENCEMEMBERSAREREQUESTEDTOREGISTERTHEIR"ANK!CCOUNTDETAILS#ORE"ANKING3OLUTIONSENABLED
ACCOUNTNUMBERDIGIT-)#2CODEDIGIT)&3#CODE INRESPECTOFSHARESHELDINDEMATERIALIZEDFORMWITHTHEIRRESPECTIVE
$EPOSITORY0ARTICIPANTIETHEAGENCYWHERETHEDEMATACCOUNTHASBEENOPENEDANDINRESPECTOFSHARESHELDINPHYSICALFORMWITH
THE24!+ARVY&INTECH0VT,TD+ARVY3ELENIUM4OWER"0LOT
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MAIL!DDRESSEINWARDRIS KARVYCOM
H -EMBERSMAYSENDTHEIRREQUESTSFORCHANGEUPDATIONOF!DDRESS"ANK!CDETAILS%#3MANDATE%MAILADDRESS.OMINATIONS
I For shares held in dematerialised form -TOTHEIRRESPECTIVE$EPOSITORY0ARTICIPANT
II For shares held in physical form -TOTHE24!ATTHEADDRESSGIVENATG ABOVEORATTHEREGISTEREDOFlCEOFTHE#OMPANY
I .ON
2ESIDENT)NDIANMEMBERSAREREQUESTEDTOINFORMTHE24!ATTHEADDRESSGIVENATG ABOVEIMMEDIATELYABOUT
I #HANGEINTHEIRRESIDENTIALSTATUSONRETURNTO)NDIAFORPERMANENTSETTLEMENT
II 0ARTICULARSOFTHEIRBANKACCOUNTMAINTAINEDIN)NDIAWITHCOMPLETENAMEBRANCHACCOUNTTYPEACCOUNTNUMBERANDADDRESS
OFTHEBANKWITHPINCODENUMBERIFNOTFURNISHEDEARLIER
J 4HE3ECURITIESAND%XCHANGE"OARDOF)NDIA3%") HASMANDATEDTHESUBMISSIONOF0ERMANENT!CCOUNT.UMBER0!. BYEVERY
PARTICIPANTINSECURITIESMARKETFAILINGWHICHTHEDEMATACCOUNTFOLIONOWOULDBESUSPENDEDFORTRADING-EMBERSHOLDINGSHARES
INELECTRONICFORMARETHEREFOREREQUESTEDTOSUBMITTHEIR0!.TOTHE$EPOSITORY0ARTICIPANTSWITHWHOMTHEYAREMAINTAININGTHEIR
DEMATACCOUNTS-EMBERSHOLDINGSHARESINPHYSICALFORMCANSUBMITTHEIR0!.DETAILSTOTHE#OMPANYORITS24!ATTHEADDRESS
GIVENATG ABOVE
K 3%")VIDECIRCULARDATED$ECEMBERHASDIRECTEDTHATNOTRANSFEROFSHARESINPHYSICALFORMWOULDBEPERMITTEDWEF!PRIL
!CCORDINGLYMEMBERSHOLDINGSHARESINPHYSICALFORMAREREQUESTEDTODEMATERIALISETHEIRSHARECERTIlCATES
L !SPERTHEPROVISIONSOFSECTION OFTHE#OMPANIES!CTTHEDIVIDENDS WHICHREMAINSUNPAIDUNCLAIMEDFORAPERIOD
OFYEARSISTOBETRANSFERREDTOTHE)NVESTOR%DUCATION0ROTECTION&UND)%0& ESTABLISHEDBYTHE#ENTRAL'OVERNMENTATTHEEND
OFTHEthYEAR!CCORDINGLYTHE#OMPANYHASTRANSFERREDALLUNPAIDUNCLAIMEDDIVIDENDDECLAREDUPTOTHElNANCIALYEAR
TO
)%0&ONTHERESPECTIVEDATES
60th Annual Report 2018-19 417
About the
Report
&URTHERSECTION OFTHE#OMPANIES!CTREADWITHRULESMADETHEREUNDERPROVIDETHATALLSHARESINRESPECTOFWHICH
DIVIDENDHASNOTBEENPAIDORCLAIMEDFORSEVENCONSECUTIVEYEARSORMORESHALLBETRANSFERREDBYTHE#OMPANYINTHEDEMATACCOUNT
OF)%0&AUTHORITY4HE#OMPANYHADSENTREMINDERLETTERTOALLSUCHMEMBERSWHOSEDIVIDENDHADREMAINEDUNPAIDUNCLAIMEDFOR
ACONSECUTIVEPERIODOFYEARSIE
TO
WITHAREQUESTTOCLAIMTHEDIVIDENDSFAILINGWHICHTHESHARESWOULD
Chairman’s Desk
BETRANSFERREDTOTHE)%0&!UTHORITYONTHEDUEDATE4HEREAFTERSUCHSHARESWERETRANSFERREDTOTHEDEMATACCOUNTOFTHE)%0&
!UTHORITYON4HEDETAILSOFSUCHSHARESAREHOSTEDONTHEWEBSITEOFTHE#OMPANYWWWIOCLCOM
www.iocl.com.
From the
)TMAYPLEASEBENOTEDUPONCOMPLETIONOFYEARSTHE#OMPANYWOULDTRANSFERTHEUNPAIDUNCLAIMEDDIVIDENDFORTHElNANCIAL
YEAR
IN.OVEMBER&URTHERTHESHARESINRESPECTOFWHICHDIVIDENDFORlNANCIALYEAR
HASREMAINEDUNPAID
UNCLAIMEDFORACONSECUTIVEPERIODOFYEARSIEFROM
TO
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)%0&!UTHORITYINTHEMONTHOF.OVEMBER4HEDETAILSOFSUCHUNPAIDUNCLAIMEDDIVIDENDS ASWELLASSHARESLIABLETOBE
About IndianOil
www.iocl.com.
TRANSFERREDTOTHE)%0&AREHOSTEDONTHEWEBSITEOFTHE#OMPANYWWWIOCLCOM4HEMEMBERSAREREQUESTEDTOWRITETOTHE24!AT
THEADDRESSGIVENATG ABOVEORATTHEREGISTEREDOFlCEOFTHE#OMPANYFORCLAIMINGTHEUNPAIDUNCLAIMEDDIVIDEND
Further, Section 125 of the Companies Act, 2013 provides that a member whose dividend amount/shares have been transferred to
the IEPF shall be entitled to claim refund therefrom. The procedure for claiming the unpaid dividend amount and shares transferred
to the IEPF Authority is provided on the following link: http://www.iepf.gov.in/IEPF/refund.html
Description of
M 0URSUANTTO3ECTIONSANDOFTHE#OMPANIES!CTREADWITH#OMPANIES-ANAGEMENTAND!DMINISTRATION 2ULES
!NNUAL2EPORTOFTHE#OMPANYHASBEENSENTTHROUGHEMAILTOTHOSEMEMBERSWHOSEEMAIL)$ISREGISTEREDWITHTHE#OMPANY
Capitals
$EPOSITORY4HOSEMEMBERSWHOHAVENOTREGISTEREDTHEIREMAIL)$AREREQUESTEDTOWRITETOTHE24!THEIR$EPOSITORY0ARTICIPANT
FORREGISTERINGTHESAME)NCASEANYMEMBERWANTSAPHYSICALCOPYOFTHE!NNUAL2EPORTHEMAYSENDAREQUESTTOTHE#OMPANY
3ECRETARYATTHE2EGISTEREDOFlCEOFTHE#OMPANYORTOTHE24!ATTHEADDRESSGIVENATPOINTG ABOVE
Board of
O )NTERMSOF3ECTIONOF#OMPANIES!CTREADWITHTHE#OMPANIES-ANAGEMENTAND!DMINISTRATION !MENDMENT2ULES
AND2EGULATIONOF3%"),ISTING/BLIGATIONSAND$ISCLOSURE2EQUIREMENTS 2EGULATIONSTHE#OMPANYISPROVIDING
THE FACILITY TO ITS MEMBERS TO EXERCISE THEIR RIGHT TO VOTE BY ELECTRONIC MEANS ON ANY OR ALL OF THE BUSINESSES SPECIlED IN THE
ACCOMPANYING.OTICE
The cut-off date to be eligible to vote by electronic means is Thursday, August 22, 2019.
Directors’
P Facility for E-Voting
Report
$ETAILSOFTHEPROCESSANDMANNEROFE
VOTINGALONGWITHTHE5SER)$AND0ASSWORDHASBEENSENTAREBEINGSENTTOTHEMEMBERS
ALONGWITHTHENOTICE
Management’s
BYPOSTTOTHOSEMEMBERSWHOSEEMAIL)$ISNOTREGISTEREDWITHTHE#OMPANY$EPOSITORY0ARTICIPANT
4HEINSTRUCTIONSANDOTHERINFORMATIONRELATINGTOE
VOTINGAREASUNDER
I https://evoting.karvy.com
,AUNCHINTERNETBROWSERBYTYPINGTHE52,HTTPSEVOTINGKARVYCOM
Responsibility Report
• &ORlRSTTIMEUSERS
%NTERTHELOGINCREDENTIALSIE5SER)$AND0ASSWORDMENTIONEDINTHENOTICE
Business
!FTERENTERINGTHESEDETAILSAPPROPRIATELY#LICKONh,/').v
9OUWILLNOWREACHPASSWORDCHANGE-ENUWHEREINYOUAREREQUIREDTOMANDATORILYCHANGEYOURPASSWORDWITHA Report on Corporate
PASSWORDOFYOURCHOICETHATMEETSTHECRITERIASTATEDONTHEWEBPAGE
9OUNEEDTOLOGINAGAINWITHTHENEWPASSWORD
Governance
• &OREXISTINGUSERSALREADYREGISTEREDWITH+ARVYFORE
VOTING0LEASEUSEYOUREXISTING5SER)$ANDPASSWORDFORLOGGING
IN
It is strongly recommended that you do not share your password with any other person and that you take utmost care
Notice
Statements
Financial
AGM
418 Indian Oil Corporation Limited 2nd Integrated Annual Report
TOKEEPYOURPASSWORDCONlDENTIAL
II /NSUCCESSFULLOGINTHESYSTEMWILLPROMPTYOUTOSELECTTHEh%6%.vIE)NDIAN/IL#ORPORATION,IMITED
III /NTHEVOTINGPAGEENTERTHENUMBEROFSHARESWHICHREPRESENTSTHENUMBEROFVOTESASONTHE#UT/FFDATE UNDERh&/2
!'!).34vORALTERNATIVELYYOUMAYPARTIALLYENTERANYNUMBEROFVOTESINh&/2vANDPARTIALLYINh!'!).34vSUCHTHATTHE
TOTALNUMBEROFVOTESCASTh&/2!'!).34vTAKENTOGETHERSHOULDNOTEXCEEDYOURTOTALSHAREHOLDING
IV 6OTINGHASTOBEDONEFOREACHITEMOFTHE.OTICESEPARATELY
V -EMBERSHOLDINGMULTIPLEDEMATACCOUNTSFOLIOSSHALLCHOOSETHEVOTINGPROCESSSEPARATELYFOREACHDEMATACCOUNTFOLIO
VI 9OUMAYTHENCASTYOURVOTEBYSELECTINGANAPPROPRIATEOPTIONANDCLICKONh3UBMITv
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ALLOWEDTOMODIFYYOURVOTE$URINGTHEVOTINGPERIODMEMBERSCANLOGINANYNUMBEROFTIMESTILLTHEYHAVEVOTEDONTHE
2ESOLUTIONS
VIII #ORPORATE)NSTITUTIONALMEMBERSAREREQUIREDTOSENDSCANNEDCERTIlEDTRUECOPY0$&&ORMAT OFTHE"OARD2ESOLUTION
!UTHORITY ,ETTER ETC TO THE 3CRUTINIZER AT EMAIL )$ ioclevoting2019@dholakia-associates.com WITH A COPY MARKED TO
EVOTING KARVYCOM4HEYMAYALSOUPLOADTHESAMEINTHEE
VOTINGMODULEAFTERLOGIN4HESCANNEDIMAGEOFTHEABOVE
MENTIONEDDOCUMENTSSHOULDBEINTHENAMINGFORMAT “IOCL 60 AGM”.
4HEE
VOTINGWOULDCOMMENCEON3ATURDAY!UGUSTAT!-)34 ANDENDON4UESDAY!UGUSTAT
0-)34 $URINGTHISPERIODTHE ELIGIBLE MEMBERS OF THE #OMPANY MAY CAST THEIR VOTE BY ELECTRONIC MEANS INTHE
MANNERANDPROCESSSETOUTHEREINABOVE4HEE
VOTINGMODULESHALLBEDISABLEDFORVOTINGTHEREAFTER
&ACILITYFORVOTINGWOULDALSOBEMADEAVAILABLEATTHE!'-VENUE-EMBERSWHOCASTTHEIRVOTESELECTRONICALLYSHOULDNOTVOTE
ATTHE!'-(OWEVERINCASEAMEMBERVOTESELECTRONICALLYASWELLASATTHE!'-THEVOTECASTATTHE!'-WILLBEIGNORED
https://evoting.karvy.com
)NCASEOFANYQUERYPERTAININGTOE
VOTINGPLEASEVISIT(ELP&!1SSECTIONOFHTTPSEVOTINGKARVYCOM
4HEVOTINGRIGHTSOFTHEMEMBERSSHALLBEINPROPORTIONTOTHEIRSHARESOFTHEPAIDUPEQUITYSHARECAPITALOFTHE#OMPANYASON
THECUT
OFFDATE
4HE#OMPANYHASAPPOINTED3HRI.RUPANG$HOLAKIAOF$HOLAKIA!SSOCIATES,,0APRACTICING#OMPANY3ECRETARYAS3CRUTINIZER
ANDINHISABSENCE3HRI"6$HOLAKIAOF$HOLAKIA!SSOCIATES,,0TOSCRUTINIZETHEE
VOTINGANDPOLLPROCESSINAFAIRAND
TRANSPARENTMANNER
4HE 3CRUTINIZER SHALL IMMEDIATELY AFTER THE CONCLUSION OF VOTING AT THE !'- lRST COUNT THE VOTES CAST AT THE MEETING AND
THEREAFTERUNBLOCKTHEVOTESCASTTHROUGHREMOTEE
VOTINGINTHEPRESENCEOFATLEASTTWO WITNESSESNOTINTHEEMPLOYMENT
OFTHE#OMPANYANDSUBMITNOTLATERTHANTWODAYSOFCONCLUSIONOFTHEMEETINGACONSOLIDATEDSCRUTINISERSREPORTOFTHETOTAL
VOTESCASTINFAVOURORAGAINSTIFANYTOTHE#HAIRMANOFTHE#OMPANYORSUCHOTHEROFlCERAUTHORIZEDBYTHE#HAIRMAN
4HE2ESULTSONRESOLUTIONSSHALLBEDECLAREDWITHINTWODAYSOFTHECONCLUSIONOFTHE!'-ANDTHERESOLUTIONSWILLBEDEEMED
TOBEPASSEDONTHE!'-DATESUBJECTTORECEIPTOFTHEREQUISITENUMBEROFVOTESINFAVOUROFTHE2ESOLUTIONS
(10) The results of voting along with the Scrutinizer’s Report(s) thereon would be available on the website of the Company (www.iocl.
4HERESULTSOFVOTINGALONGWITHTHE3CRUTINIZERS2EPORTS THEREONWOULDBEAVAILABLEONTHEWEBSITEOFTHE#OMPANYWWWIOCL
com) and on Service Provider’s website (https://evoting.karvy.com) immediately after the declaration of the results and would
COM ANDON3ERVICE0ROVIDERSWEBSITEHTTPSEVOTINGKARVYCOM IMMEDIATELYAFTERTHEDECLARATIONOFTHERESULTSANDWOULD
also be communicated simultaneously to the BSE Limited and the National Stock Exchange of India Limited.
ALSOBECOMMUNICATEDSIMULTANEOUSLYTOTHE"3%,IMITEDANDTHE.ATIONAL3TOCK%XCHANGEOF)NDIA,IMITED
About the
Report
Number of Board Meetings attended during 2018-19 12
Details of Directorships in other companies 1
Membership/Chairmanship in the Committees of other companies .),
Chairman’s Desk
No. of Shares held in the Company as on date
Relationship between Directors and Key Managerial Personnel .ONE
From the
Item no. 4 - To appoint a Director in place of Shri Ranjan Kumar Mohapatra (DIN: 08006199), who retires by rotation and is
eligible for reappointment.
3HRI2ANJAN+UMAR-OHAPATRA$IRECTOR(UMAN2ESOURCES AGEDYEARSWASINDUCTEDONTHE"OARDOFTHE#OMPANYON
About IndianOil
FORAPERIODOFYEARSORTILLTHEDATEOFHISSUPERANNUATIONWHICHEVERISEARLIER(EISA-ECHANICAL%NGINEERFROM")430ILANIANDA
0OST
'RADUATEIN-ANAGEMENTFROM8AVIER)NSTITUTEOF-ANAGEMENT"HUBANESWAR3HRI-OHAPATRAHASOVERTHREEDECADESOFEXPERIENCE
INTHEPETROLEUMINDUSTRYANDHASHANDLEDVARIOUSASSIGNMENTSINTHE-ARKETING$IVISIONOFTHE#OMPANYINCLUDING4ERMINAL/PERATIONS
3UPPLY #HAIN -ANAGEMENT ,OGISTICS 3HRI -OHAPATRA WAS ALSO ONE OF THE CHIEF ARCHITECTS OF THE AUTO
FUEL QUALITY "3
)))"3
)6
UPGRADATIONPROGRAMMESOF/IL#OMPANIESIN)NDIA
Number of Board Meetings attended during 2018-19 12
Description of
Details of Directorships in other companies 1
Capitals
Membership/Chairmanship in the Committees of other companies .),
No. of Shares held in the Company as on date
STATEMENT SETTING OUT THE MATERIAL FACTS RELATING TO THE SPECIAL BUSINESS IN PURSUANCE OF SECTION 102(1) OF
Board of
THE COMPANIES ACT, 2013
Item No. 5 - To re-appoint Shri Parindu K. Bhagat (DIN : 01934627) as an Independent Director for a period of one year.
3HRI0ARINDU+"HAGAT$). AGEDYEARSWASAPPOINTEDASAN)NDEPENDENT$IRECTOROFTHE#OMPANYFORAPERIODOF
YEARSWEF$ECEMBERANDHEHELDOFlCEUPTO$ECEMBERhlRSTTERMv
)NDIAN/IL BEING A 'OVERNMENT #OMPANY THE APPOINTMENT OF $IRECTORS INCLUDING )NDEPENDENT $IRECTORS IS MADE BY 'OVERNMENT OF
Directors’
Report
)NDIA4HE-INISTRYOF0ETROLEUMAND.ATURAL'ASVIDEITSLETTERDATED.OVEMBERHADRE
APPOINTED3HRI0ARINDU+"HAGATAS
.ON
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Management’s
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VARIOUS.'/STRUSTSANDRELIGIOUSINSTITUTIONSFORTHEBENElTOFSOCIETYATLARGE
Responsibility Report
Number of Board Meetings attended during 2018-19 12
Details of Directorships in other companies .),
Membership/Chairmanship in the Committees of other companies .),
Business
No. of Shares held in the Company as on date .),
Relationship between Directors and Key Managerial Personnel .ONE
Report on Corporate
4HE#OMPANYHASRECEIVEDADECLARATIONFROM3HRI0ARINDU+"HAGATTHATHEMEETSTHECRITERIAOFINDEPENDENCEASPRESCRIBEDUNDER
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Notice
Statements
Financial
AGM
420 Indian Oil Corporation Limited 2nd Integrated Annual Report
The Board, therefore, recommends the Special Resolution for approval by the members.
)TEM.O
4ORATIFYTHEREMUNERATIONOFTHE#OST!UDITORSFORTHElNANCIALYEARENDING-ARCH
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About the
Report
#ONSIDERINGTHEANTICIPATEDGROWTHINACTIVITIESOF)/!'0,ITISPROPOSEDTOAPPOINTONEOFTHEWHOLE
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0ERSONNELOFTHE#OMPANYANDTHEIRRELATIVESWOULDINANYWAYBEINTERESTEDORCONCERNEDINTHERESOLUTIONSETOUTATITEMNOOFTHE
NOTICE
The Board, therefore, recommends the Special Resolution for approval by members.
Description of
Capitals
Directors and others
Board of
2EGISTERED/FlCE By Order of the Board of Directors
IndianOil Bhavan
'
!LI9AVAR*UNG-ARG
"ANDRA%AST
-UMBAI
3D
Directors’
(Kamal Kumar Gwalani)
Report
Date: 15th July 2019 Company Secretary
About the
Report
Indian Oil Corporation Limited
[CIN – L23201MH1959GOI011388]
Chairman’s Desk
2EGD/FlCE@)NDIAN/IL"HAVAN'
!LI9AVAR*UNG-ARG"ANDRA% -UMBAI
www.iocl.com.
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ATTENDANCE SLIP
DP ID. * CLIENT ID * FOLIO NO. NO. OF SHARE(S)
About IndianOil
!PPLICABLEFORMEMBERSWHOAREHOLDINGSHARESINDEMATERIALIZEDFORM
Description of
AMATNehru Centre Auditorium, Dr. Annie Besant Road, Worli, Mumbai – 400018
Capitals
Directors and others
.AMEOFTHE-EMBER
Board of
3IGNATUREOFTHE-EMBER
Directors’
.AMEOFTHE0ROXY
Report
Discussion & Analysis
3IGNATUREOFTHE0ROXY
Management’s
Responsibility Report
NOTES:
Business
+INDLYSIGNANDHANDOVERTHEATTENDANCESLIPATTHEENTRANCEOFTHEMEETINGHALL
-EMBERS0ROXYHOLDERSAREREQUESTEDTOBRINGTHEIRCOPYOFTHE!NNUAL2EPORTFORREFERENCEATTHEMEETING Report on Corporate
Governance
Notice
Statements
Financial
AGM
424 Indian Oil Corporation Limited 2nd Integrated Annual Report
60th Annual Report 2018-19 425
About the
Report
Indian Oil Corporation Limited
[CIN – L23201MH1959GOI011388]
Chairman’s Desk
2EGD/FlCE@)NDIAN/IL"HAVAN'
!LI9AVAR*UNG-ARG"ANDRA% -UMBAI
www.iocl.com.
4EL
&AX
%MAIL)DINVESTORS INDIANOILIN7EBSITEWWWIOCLCOM
From the
PROXY FORM
;0URSUANTTOSECTION OFTHE#OMPANIES!CTANDRULE OFTHE#OMPANIES-ANAGEMENTAND!DMINISTRATION 2ULES
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.AMEOFTHEMEMBERS
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Email id
&OLIO.O#LIENT)D
$0)$
Description of
!PPLICABLEFORMEMBERSWHOAREHOLDINGSHARESINDEMATERIALIZEDFORM
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)7EBEINGTHEMEMBERS OFxxxxxxxSHARESOFTHEABOVENAMEDCOMPANYHEREBYAPPOINT
OFHAVINGEMAILIDORFAILINGHIM
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ANDWHOSESIGNATURES AREAPPENDEDBELOWASMYOURPROXYTOATTENDANDVOTEONAPOLL FORMEUSANDONMYOURBEHALFATTHEth
!NNUAL 'ENERAL -EETING OF THE #OMPANY TO BE HELD ON 7EDNESDAY !UGUST AT AM AT Nehru Centre Auditorium,
Dr. Annie Besant Road, Worli, Mumbai – 400018ANDATANYADJOURNMENTTHEREOFINRESPECTOFSUCHRESOLUTIONSASAREINDICATEDBELOW
Directors’
Report
1 4ORECEIVECONSIDERANDADOPTTHEAUDITED3TANDALONEASWELLAS#ONSOLIDATED&INANCIAL3TATEMENTOFTHE#OMPANYFORTHE
lNANCIALYEARENDED-ARCHTOGETHERWITH2EPORTSOFTHE$IRECTORSANDTHE!UDITORSTHEREON
2 4ODECLARETHE&INAL$IVIDENDOF`PEREQUITYSHAREFORTHEYEAR
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3 4OAPPOINTA$IRECTORINPLACEOF$R3362AMAKUMAR$). WHORETIRESBYROTATIONANDISELIGIBLEFORREAPPOINTMENT
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4ORE
APPOINT3HRI0ARINDU+"HAGAT$). ASAN)NDEPENDENT$IRECTORFORAPERIODOFONEYEAR(Special Resolution)
Responsibility Report
4ORATIFYTHEREMUNERATIONOFTHE#OST!UDITORSFORTHElNANCIALYEARENDING-ARCH
4OPROVIDE#ORPORATE'UARANTEESTOBANKSONBEHALFOF)NDIAN/IL
!DANI'AS0VT,TDA*OINT6ENTURE#OMPANYFOROBTAINING
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0ERFORMANCE"ANK'UARANTEESINFAVOUROF0ETROLEUM.ATURAL'AS2EGULATORY"OARDFOR#ITY'AS$ISTRIBUTION0ROJECTSIN
VARIOUS'EOGRAPHICAL!REAS (Special Resolution)
3IGNEDTHISxxxxxDAYOFxxxxx
Report on Corporate
Governance
3IGNATUREOF-EMBER
!FlX
Revenue
Stamp
3IGNATUREOFlRSTPROXYHOLDER 3IGNATUREOFSECONDPROXYHOLDER 3IGNATUREOFTHIRDPROXYHOLDER
Notice
Statements
Financial
./4% 4
HIS0ROXY&ORMDULYlLLEDINMUSTBEDEPOSITEDATTHE2EGISTERED/FlCEOFTHE#OMPANYAT)NDIAN/IL"HAVAN'
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AGM
Jung Marg, Bandra (East), Mumbai - 400051 not less than 48 hours before the commencement of the Annual General Meeting.
NOTES
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NOTES
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NOTES
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