Indian Oil Corporation Limited 3rd Integrated Annual Report 61st Annual Report 2019-20

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NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS
Note - 19 : DEFERRED TAX LIABILITIES (NET) Note - 20 : OTHER LIABILITIES (NON FINANCIAL)
(₹ in Crore)
(i) In compliance of Ind AS – 12 on “Income Taxes”, the item wise details of Deferred Tax Liability (net) are as under: Non Current Current
Particulars

Chairman’s Desk
(₹ in Crore) March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019

From the
Provided Deferred Income 4.41 5.57 1.20 1.81
Provided
during the year Balance as
As on during the Government Grants (refer Note - 43) 1,931.60 1,570.27 171.80 120.57
Particulars in Statement on March 31,
April 1, 2019 year in OCI
of Profit and 2020 Statutory Liabilities - - 6,448.70 7,681.39
(net)
Loss *
Advances from Customers 111.49 23.61 4,913.32 3,799.28
Deferred Tax Liability:

About IndianOil
Others 0.60 - 933.22 872.33
Related to Fixed Assets 23,270.61 (5,301.60) - 17,969.01
TOTAL 2,048.10 1,599.45 12,468.24 12,475.38
Foreign Currency gain on long term monetary item 12.50 (12.50) - -
Total Deferred Tax Liability (A) 23,283.11 (5,314.10) - 17,969.01
Note - 21 : BORROWINGS - CURRENT
Deferred Tax Assets: (₹ in Crore)

Description of Capitals
Provision on Inventories, Debtors, Loans and Advance, Investments 1,020.64 (160.28) - 860.36 Particulars March 31, 2020 March 31, 2019
Compensation for Voluntary Retirement Scheme 9.38 (5.88) - 3.50
SECURED LOANS
43B/40 (a)(ia)/other Disallowances etc. 3,760.28 (1,107.72) 21.32 2,673.88
Loans Repayable on Demand
Carry Forward Business Losses/ Unabsorbed Depreciation 304.67 2,993.00 - 3,297.67
From Banks: A
Remeasurement of defined benefit plan 0.58 - - 0.58

Board of Directors, etc.

Working Capital Demand Loan 7,242.52 3,920.05
Fair valuation of Equity instruments (54.11) - 126.47 72.36
Cash Credit 641.88 4,225.66
MTM on Hedging Instruments (11.85) - (3.63) (15.48)
Foreign Currency Loans 22.67 -
Fair value of debt instruments 5.76 - (150.87) (145.11)
7,907.07 8,145.71
Others (455.37) (362.66) - (818.03)
From Others:
Total Deferred Tax Assets (B) 4,579.98 1,356.46 (6.71) 5,929.73
Loans through Tri-Party Repo Segment (TREPS) of Clearing Corporation of India Ltd.

Directors’ Report
B 2,629.95 2,587.53
MAT/ECS credit entitlement (C) - Net # 2,193.42 (1,593.43) - 599.99 (CCIL)

Deferred Tax Liability net of MAT Credit (A-B-C) 16,509.71 (5,077.13) 6.71 11,439.29 Other Loans A 1,493.38 1,783.98
Total Secured Loans 12,030.40 12,517.22
# Includes generation of MAT Credit of ₹770.05 crores due to alignment of tax provisions with ITR and ₹1,921.13 crores towards MAT
credit written off upon movement to new regime by Holding Company.
* Includes translation reserve of ₹41.30 crores due to translation of Opening Balance at Closing Exchange Rate UNSECURED LOANS

Discussion & Analysis

Management’s
Loans Repayable on Demand
(ii) Reconciliation between the average effective tax rate and the applicable tax rate is as below :
From Banks/ Financial Institutions
2019-20 2018-19 In Foreign Currency 29,937.93 14,157.68
(%) (%)
In Rupee 8,671.85 3,466.88
Applicable tax rate 25.168 34.944

Responsibility Report
38,609.78 17,624.56
Tax effect of income that are not taxable in determining taxable profit 6.12 (2.83)
From Others

Business
Tax effect of expenses that are not deductible in determining taxable profit (4.11) 1.08
Commercial Papers 19,257.26 23,417.51
Tax effect on recognition of previously unrecognised allowance/disallowances 0.84 1.57
Total Unsecured Loans 57,867.04 41,042.07
Tax effect of expenses on share buy back through Equity - 0.02
TOTAL SHORT-TERM BORROWINGS 69,897.44 53,559.29
Tax expenses/income related to prior years (10.08) (1.84)

Corporate Governance
Difference in tax due to income chargeable to tax at special rates 1.48 (0.04) A. Against hypothecation by way of first pari passu charge on Raw Materials, Finished Goods, Stock-in Trade, Sundry Debtors,

Report on
Outstanding monies, Receivables, Claims, Contracts, Engagements to SBI and HDFC Banks.
Tax impact on share of profit of JVs/ Associates added net of tax in PBT of Group 1.97 (0.11)
Tax effect of different or nil tax rates of Group Companies (3.24) (0.90) B. Against pledging of the following to CCIL:
Effect of Taxes in foreign jurisdiction (5.65) 1.55 Government Securities (Including OMC GOI Special Bonds) 3,701.00 2,655.00
Difference due to change in Rate of Tax 61.35 (0.04) Bank Guarantees 1,650.00 1,650.00

Financial Statements
Consolidated
Others 0.01 (0.03)
Average Effective Tax Rate 73.86 33.37

350 Financial Statements Financial Statements 351