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

About the Report

NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS

Note - 39 : FAIR VALUES (Contd...) Note - 39 : FAIR VALUES (Contd...)

Significant Range II. Disclosures relating to recognition of differences between the fair value at initial recognition and the
Valuation Sensitivity of the
transaction price

Chairman’s Desk
Description unobservable (weighted
technique input to fair value

From the
inputs average)
In the following cases, the Company has not recognized gains/losses in profit or loss on initial recognition of financial assets/
March 31, 2020: financial liability, instead, such gains/losses are deferred and recognized as per the accounting policy mentioned below.
0.01x increase/ (decrease) in Revenue
0.49x - 0.53x
Multiple would result in increase/ (decrease)
Revenue (0.51x)
Multiple March 31, 2019:
in fair value by: Financial Assets
Haldia Petrochemical Market March 31, 2020: ₹4.20 crore/ ₹(4.10) crore
Limited (included under Approach with 0.80x - 0.84x
March 31, 2019: ₹4.50 crore/ ₹(4.40) crore 1. Loan to Employees
(0.82x)

About IndianOil
I FVTOCI assets in unquoted equal weights
equity instruments- Refer to Revenue and 0.1x increase/ (decrease) in EBITDA Multiple
As per the terms of service, the Company has given long term loan to its employees at concessional interest rate.
Note-4 for Carrying Value) EBITDA Multiple March 31, 2020: Transaction price is not fair value because loans are not extended at market rates applicable to employees. Since
would result in increase/ (decrease) in fair
EBITDA 5.6x - 6.0x (5.8x) implied benefit is on the basis of the services rendered by the employee, it is deferred and recognized as employee
value by:
multiple March 31, 2019:
March 31, 2020: ₹4.30 crore/ ₹(4.20) crore benefit expense over the loan period.
5.5x - 5.9x (5.7x)
March 31, 2019: ₹7.50 crore/ ₹(7.40) crore
2. PMUY loan

Description of Capitals
March 31, 2020:
0.5% increase/ (decrease) in discount rate The PMUY loan is the interest free loan given to PMUY beneficiaries towards cost of burner and 1st refill. The loan is
5.98% -7.98%
Non Convertible would result in (decrease)/ increase in fair interest free and therefore transaction price is not at fair value. The difference between fair value and transaction price
Discount Rate (6.98%)
II Redeemable Preference DCF method value by:
(Post tax) March 31, 2019: is accumulated in Deferred expenses and amortized over the loan period on straight line basis in the Statement of Profit
Shares March 31, 2020: ₹(11.00) crore/ ₹11.50 crore
4.85% - 6.85%
March 31, 2019: ₹(14.00) crore/ ₹14.00 crore and Loss.
(5.85%)
3. Security Deposits
March 31, 2020:
0.5% increase/ (decrease) in Discount Rate The security deposit is paid to landlord in relation to lease of land. The security deposit is interest free and therefore
5.5% -7.5%

Board of Directors, etc.

would result in (decrease)/ increase in fair
III
Compulsorily Convertible Present Value
Discount Rate
(6.5%)
value by:
transaction price is not fair value.The difference between fair value and transaction price is accumulated in Deferred
Debentures Analysis March 31, 2019: expenses and amortized over the loan period on straight line basis in the statement of Profit and loss till March 31,2019
March 31, 2020: ₹(2.44) crore/ ₹2.47 crore
7.3% - 9.3% prior to introduction of IND AS 116.
March 31, 2019: ₹(5.20) crore/ ₹5.30 crore
(8.3%)
Financial Liabilities
March 31, 2020:
1% increase/ (decrease) in Discount rate
15.50% - 19.50% 1. Security Deposits
would result in (decrease)/ increase in fair
Loan to Related party - (17.50%)
IV DCF method Discount Rate value by:
Suntera March 31, 2019:

Directors’ Report
March 31, 2020: ₹(5.30) crore/ ₹6.80 crore In case certain deposits payable to deceased employees under R2 option and security deposits received in relation to
14.50% - 18.50%
March 31, 2019: ₹ (6.90) crore/ ₹7.60 crore some revenue expenses contracts, transaction price is not considered as fair value because deposits are interest free.
(16.50%)
The difference between fair value and transaction price is accumulated in Deferred income and amortized over the
tenure of security deposit on straight line basis in the Statement of Profit and Loss.
Unquoted Equity Instruments carried at FVOCI includes following investments for which Carrying Value (₹ in Crore)
Reconciliation of deferred gains/losses yet to be recognized in the Statement of Profit and Loss are as under:
sensitivity disclosure are not disclosed:
March 31, 2020 March 31, 2019

Discussion & Analysis

(₹ in Crore)

Management’s
Woodlands Multispeciality Hospital Limited 0.10 0.10 Deferred Expenses Deferred income
(Refer Note-8) (Refer Note-20)
International Cooperative Petroleum Association, New York 0.02 0.02 Particulars Year
Loan to Security Security
PMUY Loan
employees Deposits Deposits
Reconciliation of fair value measurement of Assets and Liabilities under Level 3 hierarchy of Fair Value measurement:
Opening Balance Current Year 634.48 247.03 14.90 7.38

Responsibility Report
Previous Year 594.64 208.40 15.17 8.39
FVTOCI Assets FVTPL Assets

Business
Addition During The Year Current Year 96.56 691.59 - -
Description Non Convertible Compulsorily
Unquoted Equity
Redeemable Convertible Loan to Suntera Previous Year 95.90 94.36 - 0.36
Shares
Preference shares Debentures
Amortized during the year Current Year 52.15 291.07 - 1.35
Balance as at March 31, 2019 651.87 558.38 674.67 147.29
Previous Year 56.06 55.73 0.27 1.79

Corporate Governance
Addition - - - 10.49
Adjusted during the year Current Year - - 14.90 0.42

Report on
Redemption/ Sales - - - -
Previous Year - - - (0.42)
Fair Value Changes (267.45) (2.75) (2.49) (42.85)
Closing Balance Current Year 678.89 647.55 - 5.61
Exchange Difference - - - 14.70
Previous Year 634.48 247.03 14.90 7.38
Balance as at March 31, 2020 384.42 555.63 672.18 129.63

Financial Statements
Standalone
260 Financial Statements Financial Statements 261