INDIAN OIL CORPORATION LIMITED

GROUP 9 SECTION C

P22176 RUPAL YADAV P22141 BHAVNA PATHAK

P22173 RAJANI MEENA P22175 ROHAN NATHURAM SAKPAL
P22138 ANUSHKA JINDAL P22177 RUPAYAN DAS

Company Background:
IOCL holds the highest rank – 142, for energy PSU for India and operates in the energy sector, with a
presence in almost all the streams of power like Oil, gas, petrochemicals, and alternative energy
sources. Its main products are natural gas and petrochemical products. Indian Oil Corpn. Ranks 1st in
the Refinery industry in terms of sales revenues in the year 2021-22.
It is a market leader with a 40.8% market share in India. Out of the overall gas market, it has a share
of 10% (Natural Gas area - 20%) and petroleum products share of 40.8%.
Refineries in Panipat, Mathura, Koyali, Barauni, Digboi, Guwahati, Bongaigaon, Haldia, Paradip,
Narimanan, and Chennai, but pipelines span the entire country.
A new development in talks is to set up a net-zero power & water neutral research center. Apart
from this, they do R&D on the following: lubricants, refining technology, pipeline maintenance,
petrochemicals, fuels and additives, alternative energy, bio-energy, and nanotechnology.
Main competitors: Hindustan Petroleum, Bharat Petroleum, Essar Oil & Shell, Reliance Industries,
Mangalore Refinery, and Petrochemicals Limited (MRPL).
Company Management/Board Structure:

9 directors + 2 government nominees + 8 independent directors = 19 directors

Gender ratio: 3F:16M
Shareholder’s details/Capital Structure:

Number of shares: 9,41,41,58,922

Value of shares: 71.85
In July 2022, the Company issued bonus equity shares with a ratio of 1:2.
Auditor’s Report
The Auditor of IOCL has been frequently changed. There may be two possible reasons: company
laws or the Company decides to do so for various reasons. In some countries, the Company's Act or
Company'sCompany's laws state that you must hire new auditors once every 3 to 5 years to ensure
that the auditors remain impartial and independent of the management and produce unbiased or
quality reports. Other reasons could be the hike in charges, or the auditors may be of poor quality
and not doing their job right.
There are no negative comments by the auditors, and the Company is working as per the required
standards.
Management Discussion and Analysis
 Global energy and oil demand saw a massive fall during the pandemic since there was no mobility
due to the lockdown, and it was difficult to catch up with the pre-covid trajectory.
 On the supply side, the market remained oversupplied. Due to oversupply and lack of shortage, the
market prices crashed, and US futures turned negative in Apr 2020 for the first time in history.
 Covid-19 has brought a paradigm shift in the industry. The impact of Covid-19 is such that there was
a 5.8% decline in global CO2 emission, companies with higher CO2 emissions have made Net Zero
commitments, and Investment in Green energy has increased since there has been a decrease in
solar and wind power. Solar energy is leading in the capacity expansion (22%).
 In domestic markets, India saw a 2.5% decline in energy demand and a 9.5% decrease in power
demand. The long-term fundamentals of India's energy sector remain strong. Despite facing
challenges, India continues to promote renewables and aims to double its refining capacity by 2025,
reduce carbon emissions by 30-35% and increase the gas in the energy mix before 2030.
 During the challenging times of Covid-19, Indian Oil has always risen since its strategy and vision
were aligned with the national priorities. 31,000+ employees along with lakhs of contract workers
and channel partners worked without any break, Company took the initiative to educate the
employees regarding safe practices and worked on providing vaccination to all their employees,
maintained a smooth supply chain, operational flexibility by running the refineries without any
disruption and the Company took initiatives in protecting lives by taking up in-house production of
sanitizers and provided medical grade oxygen, ventilators and other requirements related to
infrastructure
 The R&D sector is working on renewable energy resources such as electric batteries, advanced
biofuels, and carbon capture, utilization, and storage and also working on meeting the growing
energy needs of a Growing Economy.
 The Company is currently implementing three major expansion projects at its Barauni, Gujarat, and
Panipat refineries in order to enhance their crude-processing capacity by over 17MMTPA. Mega
pipeline projects are underway to increase network capacity and also the executing the
augmentation of different LPG pipelines.
 The Company has taken a few initiatives like customer-centric offerings, customer-centric initiatives
for Indane like missed-call facility, cashless transactions, etc.
 Rebranding of its retail outlets with new and improved RVI design, Deployment of Integrated
Transaction Processing System (ITPS) at select fuel stations and will shortly be deployed at all urban
outlets, the market for door-to-door delivery of petroleum products has opened up in India.
 The Company is working towards The Energy Of India with a focus on Renewables, Advanced
Biofuels, Hydrogen, CCUs, and battery technology.
 Investment in solar and wind energy space and renewable energy installation at many locations,
sourcing of UCO-based biodiesel along with non-UCO biodiesel. The Company plans to set up 1G-
Ethanol biorefineries in Chhattisgarh and Odisha to convert surplus rice stocks available with FCI to
1G Ethanol for blending. Also working on alternative fuels such as hydrogen and cryogenics.
 Digitalization initiatives were undertaken in order to boost refinery yields and throughputs.
 Investment in several joint venture companies and subsidiaries to expand its energy business and
related supply chain business. Guiding promising startups and nurturing an ecosystem conducive to
innovations in the domestic hydrocarbon sector.
 The Company is practicing effective risk management and is vigilant of the evolving risks in its
external and internal business environment. Internal Control systems are in place to ensure that
business operations are carried out smoothly.
Fixed Asset
Total investment in fixed asset as a % of total asset = 50,021.82/388,339.10 * 100 = 12.88%
Tangible assets = 144,313.53 Intangible assets = 2,575.31
IOCL has invested 4076.60 in the purchase of a fixed asset (property, plant, and equipment)
Revenue recognition policy
Revenue is recognized when goods or services are transferred to the customer, equivalent to the
consideration. Revenue is measured based on specifications in a contract with a customer and
excludes amounts collected on behalf of third parties. The Company has generally concluded that it
is the principal in its revenue arrangements, except for a few agency services because it typically
controls the goods or services before transferring them to the customer.
The cost of PPE is depreciated on the straight-line method as per the useful life prescribed in
Schedule II to the Act except in the case of the following assets: a. Useful life based on technical
assessment.
• 15 years for Plant and Equipment relating • Certain assets of CGD business
to Retail Outlets (other than storage tanks and (Compressor / Booster Compressor and
related equipment), LPG cylinders, and Dispenser - 10 years, Cascade – 20 years)
pressure regulators
• Moulds for the packaging material for
• 25 years for solar power plant Lubricants- 5 years
• Certain assets of R&D Centre (15-25 years) • In other cases, like Spare Parts, etc. (2-30
years)
Depreciation is charged on a monthly basis on assets, from/up to the month of capitalization/ sale,
disposal/ or classified as Asset held for disposal.

REVENUE
REVENUE FROM OPERATIONS

Revenue from different segments

Revenue from operations in 2020-21 = RS. Revenue from operations in 2021-22 = Rs.
5,14,890 7,28,460
Growth in revenues = Rs. 2,13,570
Inventories:
Types of Inventories
 1. Raw material and 2. Finished product 3. Stores and Spares
Stock in Process and stock in trade
Policy adopted for Inventory valuation
Raw material and stock in progress
Raw materials like crude Oil are valued at Stock in Process is equal to raw material
a cost determined on the weighted cost plus processing cost as applicable or
average basis or net realizable value, net realizable value, whichever is lower.
whichever is lower.
Finished product and stock in trade
Finished Products and Stock in Trade are price of Finished Products internally
valued at a cost determined on a 'First in produced is changed depending on raw
First Out basis or net realizable value. The materials cost and processing cost.
Stores and Spares
Stores and Spares have a value of created towards a possible diminution in
weighted average cost. Special provision the value.
is made to identify obsolete stores &
spares, and chemicals for likely diminution Stores and Spares in progress are valued
at their base cost.
in value. Further, a condition @ 5% is
Types of Investment
Non-current Investment
I. In Equity Shares
A. In Subsidiaries C. In Joint Ventures
B. In Associates D. Others
II. In Preference shares
Investment at fair value through profit and loss
A. In subsidiary companies B. Others
III. In Government Securities
IV. In Debentures and Bonds
Current Investment
I. In Government Securities (at fair value through OCI)
Kinds of contingency liabilities
Claims against the Group did not acknowledge the debt
Claims against the Group not recognized as debt amounting to J 8,695.07 crore (2021: H
8,587.36 crore) are as under:
51.69 crore (2021: H 75.76 crore) being 40.21 crore (2021: H 42.81 crore) in
the demands raised by the Central respect of demands for Entry Tax from
Excise /Customs/ Service Tax Authorities, State Governments, including interest of J
including interest of J 18.93 crore (2021: H 8.62 crore (2021: H 8.61 crore).
33.43 crore.)
985.23 crore (2021: H 2,415.13 crore), or cases are lying with Arbitrator. This
being the demands raised by the VAT/ includes the interest of J 95.00 crore
Sales Tax Authorities, including interest of (2021: H 118.3 crore).
J 786.26 crore (2021: H 848.96 crore).
385.46 crore (2021: H 301.14 crore) in
2,318.42 crore (2021: H 1,885.91 crore) in respect of other claims, including interest
respect of Income Tax demands, including of J 42.71 crore (2021: H 26.39 crore). The
interest of J 113.34 crore (2021: H 80.15 Group has not considered those disputed
crore). demands/claims contingent liabilities, for
which the outflow of resources has been
3,914.06 crore (2021: H 3,866.61 crore) considered remote. Contingent liabilities
including J 3,327.03 crore (2021: H in respect of joint operations are disclosed
3,179.83 crore) on account of Projects for in Note 34
which suits have been filed in the Courts
Other money for which the Group is Contingently Liable
As of 31.03.2022, Parent Company has the contingent liability of J 236.85 crore (2021: Nil)
towards custom duty for capital goods imported under Manufacturing & Other operation in
Warehouse Regulation (MOOWR) scheme against which Parent Company has executed and
utilized bond amounting to J 710.54 crore (2021: Nil) which represents three times of the
customs duty.
M&A
No merger and acquisition activities in 2021-2022
Indian Oil has made an equity contribution towards the acquisition of a 49% stake in Paradeep
Plastic Park Limited in January 2022
During the year, the Company spent a large sum to ensure continuity in the planned CSR
activities, including many flagship projects.

RATIOS