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 total 40.8% market share in India. Out of 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 as well: 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
There was no change in the equity share capital of the Company during the year. However, in July
2022, your Company issued bonus equity shares in the ratio of 1:2, i.e., one bonus equity share for
every two equity shares held.
Auditor’s Report
The Auditor’s of IOCL have been frequently changed. There may be two possible reasons: either due
to company laws or the company decides to do so for various reasons. In some countries, the
Company’s Act or company’s laws states that you must hire new auditors once every 3 to 5 years in
order to ensure that the auditors remain impartial and independent of the management and
produce unbiased or quality reports. Other reason 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 huge fall during the pandemic since there was no mobility due
to lockdown and it was difficult to catchup 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 April 2020 for the first time in the history
 Covid-19 has brought a paradigm shift in the industry. Impact of Covid-19 is such that there was
5.8% decline in global CO2 emission, companies with higher CO2 emission have made Net Zero
commitments, Investment in Green energy has increased since there is a decrease in solar and wind
power, Solar energy is leading in capacity expansion (22%).
 In domestic markets, India saw a 2.5% decline in energy demand and 9.5% decrease in power
demand. The long-term fundamentals of India’s energy sector remain strong and despite facing
challenges, India continues to promote renewables and aims to double its refining capacity by 2025,
reduce carbon emission by 30-35% before 2030, and increase the share of gas in the energy mix to
15% from the current 6% by 2030.
 During the challenging times of Covid-19, Indian Oil has always risen since their strategy and vision
were aligned with the national priorities. 31,000 plus employees and lakhs of contract workers and
channel partners worked without any break, company took initiative to educate the employees
regarding the safe practices and worked on providing vaccination to all their employees, maintained
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, utilisation 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 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 on the vision of being The Energy Of India with focus on Renewables,
Advanced biofuels, Hydrogen, CCUs and battery technology
 Investment in solar and wind energy space and has renewable energy installation at many locations,
sourcing of UCO based biodiesel along with non-UCO biodiesel. The company plans to set up 1G-
Ethanol bio refineries in Chhattisgarh and Odisha to convert surplus rice stocks available with FCI to
1G Ethanol for blending. Also working on alternative fuel such as hydrogen and cryogenics.
 Digitalisation initiatives undertaken in order to boost refinery yields and throughputs.
 The company has invested in several joint venture companies and subsidiaries to expand its energy
business and related supply chain business. Supporting promising startups and nurture an ecosystem
conducive for innovations in the domestic hydrocarbon sector.
 The company is practising effective risk management and is vigilant of the evolving risks in its
external and internal business environment. Internal Control systems have been put 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 purchase of fixed asset (property, plant and equipment)
Revenue recognition policy
The Company is in the business of oil and gas operations and it earns revenue primarily from sale of
petroleum products and petrochemical products. In addition, the company also earns revenue from
other businesses which comprises Gas, Exploration & Production and Others. Revenue is recognized
when control of the goods or services are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue is measured based on the consideration specified 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 a few agency services, because it typically
controls the goods or services before transferring them to the customer
Cost of PPE (net of residual value) excluding freehold land is depreciated on straight-line method as
per the useful life prescribed in Schedule II to the Act except in case of the following assets: a. Useful
life based on technical assessment
• 15 years for Plant and Equipment relating • Certain assets of CGD business, (Compressor
to Retail Outlets (other than storage tanks and / Booster Compressor and Dispenser - 10
related equipment), LPG cylinders and years, Cascade – 20 years)
pressure regulators
• Moulds used for the manufacturing of the
• 25 years for solar power plant packaging material for Lubricants- 5 years
• Certain assets of R&D Centre (15-25 years) • In other cases, like Spare Parts etc. (2-30
years)
In case of specific agreements e.g. enabling assets etc., useful life as per agreement or Schedule II to
the Act, whichever is lower and
Depreciation is charged pro-rata on monthly basis on assets, from/upto the month of capitalization/
sale, disposal/ or classified to Asset held for disposal. Residual value is determined considering past
experience and generally the same is between 0 to 5% of cost of assets except

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 including crude oil are Stock in Process is valued at raw material
valued at cost determined on weighted cost plus processing cost as applicable or
average basis or net realisable value, net realisable value, whichever is lower
whichever is lower.
Finished product and stock in trade
Finished Products and Stock in Trade, Cost of Finished Products internally
other than lubricants, are valued at cost produced is determined based on raw
determined on ‘First in First Out’ basis or materials cost and processing cost.
net realisable value, whichever is lower.
Stores and Spares
Stores and Spares (including Chemicals, made on the balance stores and spares
packing Containers i.e. empty barrels, tins (excluding barrels, tins, stores in transit,
etc.) are valued at weighted average cost. chemicals/catalysts, crude oil, and own
Specific provision is made in respect of products) towards likely diminution in the
identified obsolete stores & spares and value.
chemicals for likely diminution in value.
Further, a provision @ 5% of cost is also Stores and Spares in transit are valued at
cost.
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 not acknowledged as debt
Claims against the Group not acknowledged 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 Excise /Customs/ Service Tax Authorities
the demands raised by the Central
including interest of J 18.93 crore (2021: H 40.21 crore (2021: H 42.81 crore) in
33.43 crore.) respect of demands for Entry Tax from
State Governments including interest of J
8.62 crore (2021: H 8.61 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 interest of J 95.00 crore (2021: H
Sales Tax Authorities including interest of 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 as contingent liabilities,
for which, the outflow of resources has
3,914.06 crore (2021: H 3,866.61 crore) been considered as remote. Contingent
including J 3,327.03 crore (2021: H liabilities in respect of joint operations are
3,179.83 crore) on account of Projects for disclosed in Note 34
which suits have been filed in the Courts
Other money for which the Group is Contingently Liable
As on 31.03.2022 Parent Company has 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 utilised bond
amounting to J 710.54 crore (2021: Nil) which represents three times of the custom duty.
M&A
No merger and acquisition activities in 2021-2022
Indian Oil has made equity contribution towards acquisition of 49% stake in Paradeep Plastic
Park Limited during the month of January 2022
During the year, as against the CSR budget of H 204.77 crore (2% of the average profit of the
previous three years H 323.14 crore minus excess spent in previous year H 118.37 crore), the
Company spent a higher sum of H 298.29 crore to ensure continuity in the planned CSR activities
including many flagship projects resulting in carry over of H 93.52 crore for setting off in
succeeding years.

RATIOS