Driving growth Energising lives

FROM THE DESCRIPTION

ABOUT ABOUT BOARD
CHAIRMAN’S OF
THE REPORT INDIANOIL OF DIRECTORS
DESK CAPITALS

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
TRANSPARENCYANDINCLUSIVITYTHE#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

9OUWILLNOTICETHATLIKELASTYEARTHISYEARTOOWEHAVEFOLLOWED

THE )NTEGRATED 2EPORTING FORMAT FOCUSSING ON THE #OMPANYS
SIX KEY CAPITALS  &INANCIAL #APITAL -ANUFACTURED #APITAL
(UMAN #APITAL )NTELLECTUAL #APITAL 3OCIAL  2ELATIONSHIP

Description of
#APITALAND.ATURAL#APITAL

Capitals
7ITHOUTANIOTAOFDOUBT)NDIAN/ILSSTRENGTHASASUCCESSFUL
ENTERPRISE STEMS FROM ITS RICH HUMAN CAPITAL 7ITH A PROUD

Directors and others

LEGACYOFFUELLINGTHEGROWTHOFALLSEGMENTSOFTHEECONOMY
FORTHEPASTSIXDECADESTHE STRONGTEAMOF)/#IANS
ISGEARINGTOPLAYALEADERSHIPROLEINTHESEEXCITINGTIMESAS

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
ANDRELATEDAREAS3URMOUNTINGMANYCHALLENGESITACHIEVED 3HRI3ANJIV3INGH
SUSTAINED GROWTH IN SYNC WITH THE NATION TO BECOME )NDIAS

Discussion & Analysis

LEADING -AHARATNA 035 AND ONE OF THE LARGEST COMMERCIAL
UNDERTAKINGS
Global and Indian economic scenario

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
INFROMIN
NOOK AND CORNER OF THE NATION PROVIDE ENERGY SOLUTIONS TO A
BILLION PLUSCUSTOMERSTOKEEP)NDIAONTHEMOVE!NDWEARE • %CONOMICDECELERATIONDUETORISINGTRADE
PROTECTIONISM53 #HINATRADETENSIONSETC

Business
FURTHEREXPANDINGOURRElNINGCAPACITYSUPPLYDISTRIBUTION
CHANNELS AND MARKETING NETWORK IN LINE WITH THE GROWING • )NDIANECONOMYGREWBYINFASTESTGROWING
DOMESTICDEMAND LARGEECONOMY
• 'ROWTHPROPELLEDBYPRIVATESPENDINGINDUSTRY Report on Corporate
4ODAYASALOW CARBONFUTUREBECKONSONTHEHORIZON)NDIAN/IL MANUFACTURINGANDCAPITALFORMATION
ISENGAGEDINBUILDINGAFUTUREFULLOFCLEANANDGREENENERGY
Governance

• 2ETAILINmATION#0) SLOWEDDOWNTOLOWESTIN

7EARELEADINGTHEINDUSTRYINANUNPRECEDENTEDQUANTUMLEAP last seven years
FROM"3 )6FUELSTOAWORLD STANDARD"3 6)COMPLIANTREGIME
BY !PRIL  )N LINE WITH GLOBAL TRENDS WE ARE INVESTING
IN A BIG WAY IN )NDIAS EMERGING NATURAL GAS ECONOMY WITH
NEW PRODUCTS AND OFFERINGS FOR DIVERSE CUSTOMER GROUPS 7E 4HEFOUNTOFYOUR#OMPANYSFUTURE READINESSISITSWORLD CLASS
ARE DEEPLY COMMITTED TO THE SUSTAINABILITY PRINCIPLE AND ARE 2$#ENTREWHICHGIVESSHAPETOPRODUCTSANDTECHNOLOGIES
Statements
Financial

PROGRESSIVELYINTEGRATINGALTERNATIVEENERGYANDRENEWABLESIN OFTHEFUTURE)TSRICHREPOSITORYOFINTELLECTUALCAPITALHASNOW
OUROPERATIONSASWELLASINOUREXPANDINGBOUQUETOFOFFERINGS CROSSEDAMAJORMILESTONEOFOVERATHOUSANDPATENTS
 4 Indian Oil Corporation Limited 2nd Integrated Annual Report

INDUSTRY SCENARIO
Global oil & gas scenario
4HEHYDROCARBONSSECTORHASCONTRIBUTEDENORMOUSLYTOGLOBAL
ECONOMICPROGRESSOVERTHELASTCENTURY4ODAYHOWEVERITIS • 'LOBALPRIMARYENERGYCONSUMPTIONGREWBYIN
FACINGCOMPETITIONFROMNEWANDEMERGINGENERGYOPTIONSAND ASAGAINSTIN
TECHNOLOGIES 4HE st CENTURY IS DElNITELY GOING TO WITNESS • /ILDEMANDGREWBYWITHNATURALGASASTHE
ECONOMIESBASEDONCLEANFUELSANDLOW CARBONOPTIONSWILL FASTESTGROWINGFUELACCOUNTINGFOROFTHE
GET PROGRESSIVELY ENTRENCHED IN THE ENERGY MIX WITH POLICY INCREASEINTOTALENERGYDEMAND
BACKING)TISTIMEFORTHEOILGASCORPORATESTOONCEAGAIN
• "RENTCRUDEOILPRICESAVERAGEDPERBARRELIN
REINVENTTHEMSELVESANDCONTINUETOPLAYALEADROLEESPECIALLY
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)NTERNETOF4HINGSETCIN
ALLSEGMENTSOFTHEINDUSTRYTOGETHERWITHINNOVATIVEPROCESS Indian oil & gas scenario
TECHNOLOGIES TO PROVIDE EFlCIENT CLEAN AND GREEN ENERGY • )NDIASPETROLEUMPRODUCTSCONSUMPTIONIN 
SOLUTIONSFORALLCUSTOMERSEGMENTSANDBUSINESSESTOENSURE WAS--4WITHGROWTHOVER 
THATNATIONSECONOMICGROWTHISNOTHAMPEREDINANYWAY
• 0ETROLCONSUMPTIONROSEBYDIESELBYAND
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'DISTRIBUTORSANDOVERFUELSTATIONSWITHANOTHER
HASBEENEXCEPTIONALINTERMSOFBOTHOPERATIONALANDlNANCIAL
INTHEOFlNG
PARAMETERS"ESIDESPOSTINGALL TIMEHIGHRECORDSINTHETHREE
MAJOR PARAMETERS n SALES AS WELL AS RElNERIES AND PIPELINES
THROUGHPUTS n THE #OMPANY CROSSED THE 2S  LAKH CRORE
MILESTONEINTURNOVERFORTHEYEARWITHHANDSOMEPROlTS7ITH
Road to reform: India’s fuels upgradation numero unoPOSITIONINTHEDOWNSTREAMPETROLEUMSECTORTHE
programme #OMPANYCONTINUEDWITHITSLEGACYOFPUTTINGTHENATIONlRST
• "3 )6FUELSIMPLEMENTATIONACROSS)NDIA#OMPLETEDBY ANDPROVIDINGVIABLEFUELSOLUTIONSTODIVERSECUSTOMERGROUPS
!PRIL WHILEATTHESAMETIMESTRENGTHENINGITSNEWVERTICALSOF%0
0ETROCHEMICALSAND'AS
• "3 6)FUELSIMPLEMENTATIONIN.#4#OMPLETEDBY!PRIL
 Marketing
9OUR#OMPANYWHICHCATERSTONEARLYHALFOF)NDIASPETROLEUM
• "3 6)IMPLEMENTATIONIN.#2AND!GRA5NDERWAYFROM CONSUMPTIONREGISTEREDITSBESTEVERSALESVOLUMESIN
!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)CONVERSIONPROJECTS2SCRORE 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

IndianOil: Fuelling a billion dreams
TEMPERATURE INDUSTRIAL APPLICATIONS  TO
• )NDIAN/ILSTURNOVERCROSSED2SLAKHCRORE
About the
Report
MILLION TONNES AND EXPORT OF )NDANE .ANOCUT ADDITISED
,0' SUITED FOR HIGH
"ANGLADESHCOMMENCEDDURINGTHEYEAR)NDIAN/ILOPENEDA
NEWREPRESENTATIVEOFlCEIN.EPALINADDITIONTOEXISTINGOFlCES

Chairman’s Desk
MILESTONEIN 
IN -YANMAR AND "ANGLADESH AND FULL mEDGED SUBSIDIARIES
• 3ALESINCLUDINGEXPORTSIN --4 OPERATINGIN3RI,ANKA-AURITIUS3INGAPOREAND5!%

From the
• %XPORTSIN --4
• .UMBEROFCUSTOMERTOUCH POINTSCROSSEDTHE
MARK

About IndianOil
• 4OTAL.OOFFUELSTATIONSAUTOMATED
• .EWHEIGHTSINAVIATIONFUELLINGWITH!&3S

!S THE INDUSTRY LEADER IN RETAIL SALES )NDIAN/IL COMPLETED

AUTOMATION OF ITS COUNTRYWIDE FUEL STATIONS NETWORK DURING
THEYEARTOENHANCE11QUALITYQUANTITY ASSURANCETOITS

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

Directors and others

crore households.

LPG for all: Clean fuel, better life

Refineries

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

SCALE 0OLYPROPYLENE 00  PLANT WAS COMMISSIONED
• ,0'PENETRATIONACHIEVED/VER
Report
! WORLD
AT 0ARADIP 2ElNERY IN &EB  TO ACT AS THE MOTHER UNIT
IN NURTURING THE DOWNSTREAM PLASTICS PROCESSING INDUSTRY IN

Discussion & Analysis

• .EW)NDANECONNECTIONSRELEASEDIN /VER
CROREHIGHESTINAYEAR THE REGION 7ORK HAS ALSO COMMENCED ON A -ONOETHYLENE
'LYCOL-%' PLANTAT0ARADIP2ElNERYWHICHISENVISAGEDAS

Management’s
• )NDIAN/ILS,0'SALESSURPASSEDMILLIONTONNESA AKEYDRIVERFORTHETEXTILESINDUSTRYINTHEREGIONESPECIALLY
month FOR POLYESTER lBRE 4WO OTHER MAJOR PROJECTS IN PROGRESS ARE
/VERTHELASTlVEYEARSYOUR#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

SERVOANOTHER)NDIAN/IL3UPERBRANDACHIEVEDTOPPOSITION • -AJORPROJECTSCOMMENCEDDURING 

INTHERETAILLUBESSEGMENTFORTHElRSTTIMEINRECENTYEARS
BESIDESREGISTERINGIMPRESSIVEGROWTHINOVERALLlNISHEDLUBES
9OUR #OMPANYS AVIATION FUELLING BUSINESS TOO GAINED HIGHER
ALTITUDE WITH ADDITION OF NINE MORE !VIATION &UEL 3TATIONS
!&3 DURINGTHEYEAR
» -%'PLANTAT0ARADIP2ElNERY+4!
» "ARAUNI2ElNERYEXPANSIONFROMTO--40!
» !4&PRODUCTIONUNITUSING)ND*ETTECHNOLOGY
• --4TERMCONTRACTSCONCLUDEDFORCRUDEOIL
Statements
Financial

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

&ORTHElRSTTIMEYOUR#OMPANYCONCLUDEDTERMCONTRACTSFOR /THERTHANITS#ITY'AS$ISTRIBUTION#'$ PROJECTSANDTHOSE

SOURCINGCRUDEOILFROM53!DURINGTHEYEARBESIDESENHANCING WITH *6 PARTNERS  PIPELINE PROJECTS OF THE #OMPANY WITH
ITS CAPABILITIES TO PROCESS CRUDE OIL GRADES FROM A WIDER AND A COMBINED CAPEX OF ABOUT 2S  CRORE ARE IN VARIOUS
CHEAPERBASKETWITHmEXIBILITYFORSOURCINGADDITIONALVOLUMES STAGES OF IMPLEMENTATION /N THEIR COMPLETION IN THE NEXT
INTERMCONTRACTSTOMANAGECONTINGENCIES THREEYEARS)NDIAN/ILSPIPELINESNETWORKWILLEXPANDTOABOUT
KM
Pipelines
$URING   )NDIAN/ILS CRUDE OIL  PRODUCT PIPELINES Research & Development
CLOCKEDTHEHIGHESTEVERCOMBINEDTHROUGHPUTSETTINGANEW )NDIAN/ILS 2$ #ENTRE IS SHAPING INTO A GAME CHANGER IN
RECORDFORTHElFTHCONSECUTIVEYEAR4HECOUNTRYWIDEPIPELINES THEENSUINGCOMPETITIVESCENARIOASYOUR#OMPANYADDSNEW
NETWORK PROVIDES IMMENSE COMPETITIVE ADVANTAGE TO THE TECHNOLOGIESPRODUCTSANDSERVICESTOITSBOUQUETOFOFFERINGS
#OMPANYINTHENEWERAOFDIGITALLY AIDEDLOGISTICS
4HE YEAR   SAW YOUR #OMPANY FURTHER BUILD UPON
THE CONlDENCE REPOSED BY ITS CUSTOMERS BY DEVELOPING AND
Pipelines: Arteries for energy flow COMMERCIALISINGPRODUCTSANDPROCESSTECHNOLOGIESTHATCATER
TOTHECHANGINGINDUSTRYNEEDS
• 0IPELINESTHROUGHPUTDURING --4
• 0IPELINESLENGTHCOMMISSIONEDIN KM
Inventing the future with world-class R&D
• -AJORAMONGTHEM
• /VERFOURDECADESOF2$EXPERTISEINLUBRICANTSFORMULATION
» 0ARADIP (ALDIA $URGAPUR,0'PIPELINEKM
RElNERYPROCESSESPIPELINETRANSPORTATIONCATALYSTS
» *AIPUR 0ANIPATNAPHTHAPIPELINEKM ADDITIVESALTERNATIVEFUELSETC
• 4OTALLENGTHOFPIPELINESNETWORKKM • /VERPATENTSlLEDTILLDATETOPATENTSPER
• #OMBINEDTHROUGHPUTCAPACITY--40!FORLIQUID ANNUMINTHELASTlVEYEARS
PIPELINESAND--3#-$FORGASPIPELINES • /VERNEWLUBRICANTFORMULATIONSDEVELOPEDIN 
• -AJORPIPELINEPROJECTSUNDERWAY COMMERCIALISED
» +ANDLA 'ORAKHPUR,0'PIPELINEKM • 3TATE OF THE ART0RODUCT!PPLICATIONS$EVELOPMENT#ENTREFOR
» )NDRADHANUSHGASGRIDINTHENORTHEASTKM polymers business
• 3UPPORTTOSTART UPSINENERGYANDSOCIALINNOVATIONSECTORS
7ORK HAS COMMENCED ON TWO MAJOR PIPELINE PROJECTS WITH
JOINT VENTURE *6  PARTNERS DURING THE YEAR   4HE !DDINGTOTHE#OMPANYSINTELLECTUALWEALTHTHE2$#ENTRE
+ANDLA 'ORAKHPUR ,0' 0IPELINE ON COMPLETION WILL BE THE CROSSEDASTELLARMILESTONEOFlLINGITSstPATENTRECENTLY
LONGEST ,0' PIPELINE IN THE WORLD AND WILL DIRECTLY FEED  )NDIAN/ILS )0 )NTELLECTUAL 0ROPERTY  PORTFOLIO CURRENTLY
BOTTLINGPLANTSENROUTE4HEPROJECTWILLBEEXECUTEDBYA*6 COMPRISES  ACTIVE PATENTS OF WHICH  PATENTS WERE
OF )NDIAN/IL "0#, AND (0#, )NDIAN/IL HAS ALSO FORMED A GRANTEDABROADANDIN)NDIA9OUR#OMPANYHASAHIGHER
*6 )NDRADHANUSH 'AS 'RID ,TD WITH /.'# /), '!), AND COMMERCIALISATIONRATEFORITSPATENTSTHANTHEGLOBALAVERAGE
.2,TODEVELOPAGASPIPELINESGRIDCONNECTINGALLTHE3TATE 3EVERAL OF THE QUALITY UPGRADATION PROJECTS IMPLEMENTED AT
CAPITALSOFTHENORTHEAST )NDIAN/IL RElNERIES FOR PRODUCTION OF "3 6) FUELS ARE BASED

)NDIAN/ILRElNERIESWORKINGRELENTLESSLYTOIMPLEMENT"3 6)UPGRADATIONPROJECTSTOMEETTHE!PRILTARGETFORSUPPLYOF"3 6)FUELS

across the country.
 60th Annual Report 2018-19 7

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'ETHANOLPROCESSTOGETHERWITHANOVEL SPECTRUMAPPLICATIONSINPLASTICSANDAREEXPORTEDTOOVER
ENZYMEWHICHREDUCESETHANOLPRODUCTIONCOSTSBY 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
LASTTWODECADESINCURRINGACAPEXOFOVER2SCRORE
2SCRORE

Propelling growth with petrochemicals

Description of
• 0ETROCHEMICALSSALESIN --4

Capitals
• 0RODUCTIONCAPACITYENHANCEDTO--4
• -AJORONGOINGPROJECTS

Directors and others

» -%'PLANTAT0ARADIP
» %XPANSIONOF.APHTHA#RACKERAT0ANIPAT
IndianOil’s R&D Centre developed over 100 new lubricant
FORMULATIONSDURINGTHEYEARANDCOMMERCIALISEDOFTHEM • .EWPROJECTSENVISAGEDTILL 

Board of
» !CRYLICACID/XO ALCOHOLPROJECTAT'UJARAT
BUILDING NEW BUSINESSES » 0804!PROJECTAT0ARADIP
"ESIDES MAKING SIGNIlCANT INVESTMENTS IN UPSTREAM ASSETS » 0ETCOKEGASSIlCATIONIN0ARADIP
ANDPETROCHEMICALSWHICHAREMAKINGSIGNIlCANTADDITIONSTO » 4EXTILESPROJECTIN%ASTERN)NDIA
THE#OMPANYSBUSINESSINTERMSOFEQUITYOILANDPROlTABILITY

Directors’
» 0"2PROJECTAT0ANIPAT

Report
)NDIAN/ILISINTEGRATINGNATURALGASANDRENEWABLESINITSENERGY
VALUECHAININABIGWAYTOBEREADYFORALOW CARBONFUTURE

Discussion & Analysis

Exploration & Production
INMAJORPETROCHEMICALPROJECTSSUCHAS,!"PLANTAT'UJARAT

Management’s
7ITH A BALANCED PORTFOLIO OF PRODUCING DISCOVERED AND
EXPLORATIONASSETSYOUR#OMPANYACHIEVEDSIGNIlCANTPROGRESS 0804!PLANTAND.APHTHA#RACKERAT0ANIPATAND00PLANTAT
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
Heading upstream for energy security
• "ALANCEDPORTFOLIOOF%0ASSETSIN)NDIAAND
overseas
 TO CONSOLIDATE BUSINESS 4HESE PROJECTS INCLUDE REVAMP
AUGMENTATIONOFEXISTINGCAPACITIESANDNEWPROJECTSASWELL
AS EQUITY INVESTMENT IN (INDUSTAN 5RVARAK  2ASAYAN ,TD Report on Corporate
(52, 
4HE)NDIAN/IL"OARDHASALSOACCORDEDAPPROVALFORA0LASTICS
Governance

• /VERSEASASSETSSPREADACROSSCOUNTRIES#ANADA 0ARK AT 0ARADIP THROUGH A *6 WITH )NDUSTRIAL $EVELOPMENT

53!2USSIA6ENEZUELA!BU$HABI/MAN,IBYA #ORPORATION OF /DISHA 3IMILARLY "OARD APPROVAL HAS BEEN
.IGERIA'ABONAND)SRAEL
OBTAINEDFORLANDPROCUREMENTANDlNALISATIONOFA*6PARTNER
• 3TRATEGICTIE UPSWITHOVERREPUTEDNATIONAL
FORATEXTILESPROJECTAT"HADRAKIN/DISHA)NDUSTRIAL0ROMOTION
INTERNATIONALENERGYCORPORATES
)NVESTMENT#ORPORATIONOF/DISHAHASALLOTTEDACRESOF
Statements

• !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
ALTERNATIVERENEWABLEENERGYANDBIO 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 AFFORDABLEFUELINAUTOMOTIVEINDUSTRIALANDCOMMERCIALUSES
APPLICATIONSINPLASTICSANDISEXPORTEDTOOVERCOUNTRIES BYCONVERSIONOFBIOMASSORANYKINDOFORGANICWASTE)NFACT
THE EVOLVING #"' PROGRAMME WILL GO A LONG WAY IN REDUCING
Natural Gas )NDIASDEPENDENCEONCRUDEOILIMPORTS
.ATURALGASISTRANSFORMINGINTOAMAJORBUSINESSLINEFORYOUR
#OMPANYANDTHERECENTCOMMISSIONINGOFTHESTATE OF THE ART
,.'IMPORTTERMINALAT%NNOREHASGIVENITABIGBOOST Green energy for a green future
!STHESECONDLARGESTPLAYERINTHISGROWINGSEGMENT)NDIAN/IL • 2SCROREINVESTMENTPLANNEDINALTERNATIVE
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 --4 • MORE#OMPANYFUELSTATIONSCONVERTEDTORUNON
SOLARENERGYIN 
• #APACITYOF%NNORE,.'TERMINAL--40!
• #UMULATIVEINSTALLEDCAPACITYOF#OMPANYS
• 'EOGRAPHICAL!REAS'! WONBY)NDIAN/ILONITSOWN
SOLAR OPERATEDFUELSTATIONS-7
AFTERthANDthROUNDOF#'$BIDDING
• '!WONINPARTNERSHIPWITH*6S
• 4OTALTALLYOF'!SWITH)NDIAN/IL
• )NVESTMENTSIN#'$OVERNEXTYEARSINCLUDINGEQUITY
CONTRIBUTIONIN*6S2SCRORE

7ITH A PORTFOLIO OF ABOUT  2 ,.' CUSTOMERS BESIDES

SUPPLIESTOTHE#OMPANYSOWNRElNERIESAT-ATHURA0ANIPAT
AND+OYALI)NDIAN/ILREGISTEREDAGROWTHINNATURALGAS
SALESIN 
"ESIDES BEING A *6 PARTNER IN )NDRADHANUSH NATURAL GAS
PIPELINE GRID IN THE .ORTHEAST YOUR #OMPANY IS INVESTING IN
TWOMOREJOINTVENTURESTHATARELAYINGTHREEGASPIPELINESOFA
COMBINEDLENGTHOFKMCOVERINGNINE3TATES
9OUR #OMPANY IS PURSUING AN AMBITIOUS AGENDA IN CITY GAS
Surging ahead, IndianOil plans to invest Rs. 25,000 crore in
DISTRIBUTION#'$ COVERING'EOGRAPHICAL!REAS'! ONITS alternative energy and sustainable development projects.
OWNASWELLASWITHREPUTEDJOINTVENTUREPARTNERS)NDIAN/ILS
INVESTMENTONDEVELOPMENTOF#'$NETWORKSINTHENEXTEIGHT
YEARSISLIKELYTOBEABOUT2SCRORE
 60th Annual Report 2018-19 9

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
CLEANFUELSENHANCEDOUTPUTSANDRElNERY 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
+EEPINGTHISINVIEWYOUR#OMPANYISPURSUINGANUMBEROF
SERVEANDSUSTAINTHETRUSTOFOURBILLION PLUSCUSTOMERSACROSS
NEWTECHNOLOGIESANDORPILOTSTUDIESINTHEAREASOFRElNERY

Capitals
CUSTOMERTOUCH POINTS
PROCESSESPETROCHEMICALSPOLYMERSALTERNATIVEENERGYAND
BIO ENERGYINCOLLABORATIONWITHREPUTEDPARTNERSIN)NDIAAND 9OUR#OMPANYS STRONGTEAMREPRESENTSAFORMIDABLE
ABROAD ARRAYOFTALENTANDSKILLSTECHNICALANDMANAGERIALEXPERTISE

Directors and others

DEMOGRAPHIC DIVERSITY AND A @CAN DO ATTITUDE INFUSED WITH
'OING CLOSER TO CONSUMPTION CENTRES AND CONSUMERS IN AN
THE CORE VALUES OF Care, Innovation, Passion and Trust 4HIS
ECONOMICAL AND ENVIRONMENT FRIENDLY MANNER HAS BEEN THE
SIGNIlESAVERYBRIGHTFUTUREFOR)NDIAN/IL4HEIDEAISTOCREATE

Board of
PHILOSOPHY BEHIND )NDIAN/ILS PIPELINE NETWORK EXPANSION
ANECO SYSTEMOFGROWTHFORALL ROUNDEXCELLENCEINOURPURSUIT
!NDASTHE#OMPANYGROWSITS,0'AND,.'VERTICALSRAPIDLY
TOCREATEHAPPYCUSTOMERSTHROUGHHIGH QUALITYPRODUCTSAND
ITSGASPIPELINESNETWORKTOOISSETFORPHENOMENALGROWTH
SERVICESDELIVEREDEFlCIENTLY
9OUR #OMPANY ASPIRES TO BE A MAJOR PLAYER IN NATURAL GAS
'ENERATIONS OF )/#IANS HAVE HAD ONE THING IN COMMON n A
WITHLEADERSHIPINTHE2 ,.'SEGMENTANDISTAKINGSTEPSTO
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

Discussion & Analysis

9OUR #OMPANY IS TARGETING ITS OWN EQUITY OIL  GAS OF 
) LOOK FORWARD TO YOUR SUPPORT AND ENCOURAGEMENT FOR THE
--40!FROMITSUPSTREAMPORTFOLIOBYTHEYEAR FROM

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
THREEFERTILISERPLANTSATANESTIMATECOSTOF2SCRORE
(Sanjiv Singh)
7ORKISPROGRESSINGATAFASTPACEONTHETHREEPLANTSLOCATED
Chairman
AT 'ORAKHPUR 5TTAR 0RADESH  3INDRI *HARKHAND   "ARAUNI
"IHAR ANDCOMMERCIALPRODUCTIONOFNEEM COATEDUREAFROM Report on Corporate
ALLTHETHREEPLANTSISLIKELYTOCOMMENCEINTHElRSTHALFOF
THEYEAR
Governance

In step with the times

9OUR #OMPANY HAS A REMARKABLE LEGACY OF GROWING IN STEP
WITH THE TIMES ! CERTIlED 'REAT 0ACE TO 7ORK )NDIAN/IL IS
CONTINUOUSLY IMPROVING ITS HUMAN ECO SYSTEM TO ACHIEVE
CROSS DIVISIONAL SYNERGY AND A SOLUTIONS ORIENTED APPROACH
Statements
Financial

4HEHUMANRESOURCECAPITALISBEINGLEVERAGEDINABIGWAYTO
 10 Indian Oil Corporation Limited 2nd Integrated Annual Report

HIGHLIGHTS OF FY 2018-19
Financial Capital

Revenue EBITDA Profit After Tax

` 6,05,924 ` 36,952 ` 16,894
crore crore crore

Manufactured Capital
Product Sales CAPEX Fuel Stations
(including exports)

89.89
Over
648 Total Numbers

Million Metric Tonnes (MMT)

` 28,100 crore Commissioned
27,702
during 2018-19

Refineries Pipelines Petroleum Petrochemicals Sales E&P

Throughput Throughput Product Sales (including exports) Gas Sales Output
71.82 MMT 88.53 MMT 79.96 MMT 2.64 MMT 3.96 MMT 4.39 MMT

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

Directors and others

11 ongoing projects
R&D expenditure

Social and Relationship Capital

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

Discussion & Analysis

than 20,000
` 1,93,422 46 cleared IIT JEE Mains Benefitted more than 7.75 Benefitted 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

Specific water Specific carbon 388 GWh increasing pipeline

Financial

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
ALLSECTORSOFTHEECONOMYANDALLSECTIONSOFSOCIETYWITHA
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
WORKFORCEOFEMPLOYEESACROSSALLITSOPERATIONS
)NDIAN/ILDISTINGUISHESITSELFWITHITSOPERATIONALEXCELLENCE
ACROSS FUNCTIONS OWNS STATE OF THE ART TECHNOLOGIES AND
CUTTING EDGE 2$ IMPLEMENTED GLOBAL BEST PRACTICES
ENSURED THAT ENERGY IS TAPPED IN THE MOST RESPONSIBLE
MANNERANDCONTINUESTOMEETTHECOUNTRYSENERGYDEMAND )NDIAN/ILJUMPEDPOSITIONSTORANKIN
MOSTAFFORDABLY FortuneS@'LOBALLISTINGOFTHEWORLDSLARGEST
lRMSFORTHEYEAR
IndianOil’s Operational Performance (FY 2018-19)

` 6,05,924 crore ` 16,894 crore ` 1,93,422 crore

2EVENUE 0ROlT!FTER4AX #ONTRIBUTIONTO%XCHEQUER

71.82 MMT 88.53 MMT 89.89 MMT

2ElNERIES4HROUGHPUT 0IPELINES4HROUGHPUT 0RODUCT3ALESINCLUSIVEOF
0ETROCHEMICALS'AS%XPORTS 
 60th Annual Report 2018-19 13

About the
Report
IndianOil’s Operational Performance (FY 2018-19)

Chairman’s Desk
,ARGEST2ElNERIN)NDIA 5NPARALLELLED.ETWORKOF
#ROSS COUNTRY0IPELINES

From the
• (IGHESTEVERCRUDEOILTHROUGHPUTOF--4
• !SON-ARCHTOTALLENGTHOFPIPELINESWAS
• #APACITYUTILISATIONOF
KMWITHCAPACITYOF-4OFCRUDEPRODUCT
• ,OWESTEVER3PECIlC%NERGY#ONSUMPTIONOF PIPELINESAND--3#-$OFGASPIPELINES
-".

About IndianOil
• #RUDEOILPIPELINES4HROUGHPUTOF--4
• .INENEWCRUDEOILGRADESPROCESSED
• 0ETROLEUMPRODUCTPIPELINES4HROUGHPUTOF--4
• 'ASPIPELINES4HROUGHPUTOF--3#-

Description of
-ARKETING2EACHING%VERY.OOK#ORNER 2$3UPPORTING"USINESS)NTERESTS

Capitals
OFTHE#OUNTRY • &ILEDPATENTSEARNEDPATENTS)NDIANAND
• $OMESTICSALESOF--4OFPETROLEUMPRODUCTS OVERSEAS
• #OMMISSIONEDFUELSTATIONS • %MBARKEDUPONWIDE SCALElELDVALIDATIONOFPATENTED

Directors and others

( #.'4ECHNOLOGY
• 3OLARISEDFUELSTATIONS
• 3ETUPPILOTPLANTTOCONVERTGREENHOUSEGAS#/ TOBIO
• .EWDOMESTIC,0'CONNECTIONSTOCRORECUSTOMERS

Board of
FUELANDHIGH VALUEFOODSUPPLEMENTMATERIAL/MEGA 
• !VIATION3ERVICEMAINTAINEDMARKETSHAREOF FATTYACIDS INCOLLABORATIONWITH,ANZA4ECH53!
• #OMMISSIONEDNINENEW!VIATION&UEL3TATIONS • $EVELOPEDLUBRICANTFORMULATIONSCOMMERCIALISED
OFTHEMRECEIVEDAPPROVALSFROM/%-

Directors’
0ETROCHEMICALS%XPANDING"EYOND#ORE .ATURAL'AS&ORA#LEAN'REEN

Report
"USINESS 4OMORROW
• -ORETHANCAPACITYUTILISATION • 2ECORDEDSALEOF--42 ,.'ANDINTERNAL

Discussion & Analysis

• 0ETROCHEMICALSSALESOF--4DOMESTICAND CONSUMPTIONOF--4OF2 ,.'

Management’s
EXPORTS • )MPLEMENTING#ITY'AS$ISTRIBUTION#'$ NETWORKSIN
• 2ECEIVEDAPPROVALSFORVARIOUSPOLYMERGRADESFROM 'EOGRAPHICAL!REAS'!S THROUGHTWO*OINT6ENTURE
MAJOR)NDIANANDINTERNATIONAL/%-S #OMPANIES
• 2OLLEDOUTTHREENEWPOLYMERGRADESANDUNDERTOOK • @,.'AT$OORSTEP SOLD4-4OF,.'

Responsibility Report
DEVELOPMENTALPROJECTSWITHCUSTOMERSAND/%-S • CUSTOMERSUSING2 ,.'
FORDEVELOPINGIMPORTSUBSTITUTIONGRADES • !FTERTH2OUNDOF#'$BIDDING PRESENCEIN'!S

Business
%XPLORATION0RODUCTION(EADING5PSTREAM !LTERNATIVE%NERGYAND3USTAINABLE
FOR%NERGY3ECURITY $EVELOPMENT4RANSITINGTO#LEAN%NERGY
• /VERSEAS%0PORTFOLIOSPREADOVERCOUNTRIESVIZ
Report on Corporate
• !DDED-7OFRENEWABLEENERGYCAPACITY
#ANADA'ABON)SRAEL,IBYA.IGERIA/MAN2USSIA5!%
• 3PEARHEADING3!4!4INITIATIVETORETAILCOMPRESSEDBIOGAS
53!6ENEZUELA
Governance

#"'
• INCREASEINSHAREOFPRODUCTIONFROMUPSTREAMASSETS
• #UMULATIVELYREPLACEDLAKHCONVENTIONALLIGHTlTTINGS
AGAINST REGISTERINGANINCREASEINVOLUMEFROM WITH,%$LIGHTS
--40!TO--40! • 0LANTEDLAKHSAPLINGSDURINGTHEYEAR
• *OINTLYAWARDEDh/NSHOREv"LOCKIN5!%WITH"HARAT
• 2ECYCLEDTONNESOFWASTEPAPERINEXCHANGEFORNEW
0ETRO2ESOURCES,TD RECYCLEDPAPER
• !CQUIRED0ARTICIPATING)NTERESTIN-UKHAIZNA/IL&IELD
Statements

• #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

ENERGY "ESIDES WELL ESTABLISHED OVERSEAS SUBSIDIARIES IN 3RI ,ANKA

-AURITIUS 5!% 3WEDEN 53! 4HE .ETHERLANDS AND 3INGAPORE

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
THENEIGHBOURINGCOUNTRIESBESIDESDEVELOPMENTOFDOWNSTREAM
INFRASTRUCTURE
)NDIAN/IL IS EVALUATING MULTIPLE BUSINESS OPPORTUNITIES IN
"ANGLADESH-YANMAR.EPAL3AUDI!RABIA!ZERBAIJANAND!FRICA
The Largest P
Packed
acked
dLLPG
PG Br
B
Brand
rand in the Wo
World
W rld India's Premium
Premiium
m Petrochemicals
Petrochemicals Products
$URINGTHEYEAR -EMORANDAOF5NDERSTANDING-O5S 
HAVEBEENSIGNEDWITHPARTNERSIN"ANGLADESHAND-YANMARFOR
COOPERATIONINUPSTREAMANDDOWNSTREAMHYDROCARBONSSECTOR
)NDIAN/ILS OVERSEAS %0 PORTFOLIO IS SPREAD OVER  COUNTRIES
One-stop
p Shop
S p for
f Autocare VIZ#ANADA'ABON)SRAEL,IBYA.IGERIA/MAN2USSIA5!%
53!6ENEZUELA$URINGTHEYEAR )NDIAN/ILALONGWITH
CONSORTIUMPARTNERSEXPANDEDITS%0PORTFOLIOTOINCLUDE)SRAEL
AND/MAN
Spec
cial format ooutlets
Special utle
ets fo
ffor
or rura
rrural
al po
populace
populace

External Forces
!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
POLITICALECONOMICSOCIALTECHNOLOGICALLEGALTOENVIRONMENTAL
)NAPOLITICALLYVOLATILEGLOBALMARKETIMPACTEDBYMULTIPLEFACTORS
SUCHAS53 #HINATRADEWARTHEIMPOSITIONOFSANCTIONSON)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
INCREASEINTHEGLOBALENERGYDEMANDCOUPLEDWITHANINCREASE
INTHEPRODUCTIONANDCONSUMPTIONOFOILINSPECIlC)NCREASING
IMPORTSOFCRUDEOILALONGWITHRISINGINTERNATIONALPRICESHASLED
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
THEROOSTTHROUGHBIGDATAANALYTICSARTIlCIALINTELLIGENCEBLOCK
 60th Annual Report 2018-19 15

About the
Report
CHAINCLOUDCOMPUTING)NTERNETOF4HINGSINTHETECHNOLOGICALLY
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
YojanaANDRURALELECTRIlCATIONSCHEME  SaubhagyaIS BRINGING
)MMINENT )NCREASING
INAPARADIGMSHIFT&URTHERASRURALINCOMESANDPROSPERITYRISE
CLIMATE ENERGY

About IndianOil
VEHICLE OWNERSHIP IS SET TO DRIVE FUEL DEMAND )NCREASING RURAL
EMERGENCY DEMAND
INCOMESAREDRIVINGOWNERSHIPOFCONSUMERAPPLIANCESWHICHIN
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

Directors and others

.$#S  4HE INTERNATIONAL AGENCIES ARE CLOSELY MONITORING THE $ISRUPTING
PROGRESSON.$#SMAKINGITNOLONGERPOSSIBLEFORCOMPANIESTO )NDUSTRY
DOBUSINESSWITHOUTENSURINGSUSTAINABLEBUSINESSPRACTICES TECHNOLOGY

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

Discussion & Analysis

)NDIAN/ILS COMMITMENT TO UPHOLDING THE HIGHEST PRINCIPLES OF )NDIAN/ILBELIEVESTHATAFRAMEWORKBASEDONTHESECOREPRINCIPLES
BUSINESS INTEGRITY TRANSPARENCY AND ACCOUNTABILITY DElNES IT AS NOTONLYMAXIMISESSHAREHOLDERVALUESBUTALSOFOSTERSTRUSTINTHE

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
CONDUCTBUSINESSINANETHICALTRANSPARENTANDFAIRMANNER

Responsibility Report
STANDARDSOFINTEGRITYEMBRACINGBOTHVALUESANDRULES

Business
Components of Policy Framework
Report on Corporate

Code of Conduct for Directors Corporate Social

Governance

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 for Determination

Code for Prevention of of Material / Price
Statements

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
THEIRFULlLMENT4HE"OARDALSOPROVIDESDIRECTIONANDEXERCISES
APPROPRIATE CONTROL TO ENSURE THAT THE #OMPANY IS MANAGED IN
A MANNER THAT FULlLS STAKEHOLDERS ASPIRATIONS AND SOCIETAL
EXPECTATIONS
OBTAINING FURTHER INFORMATION AND CLARIlCATIONS IF ANY ON THE
AGENDAITEMSBEFORETHEMEETINGANDFORMEANINGFULPARTICIPATION
ATTHEMEETING
$URINGTHElNANCIALYEAR
"OARD-EETINGSWEREHELD
!DEQUATENOTICEWASGIVENTOALLDIRECTORSTOSCHEDULETHE"OARD
4HE"OARDOF$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 $IRECTORS 4HE "OARD HAS A BALANCE OF ITEMSAREUPLOADEDONADIGITALPLATFORM"OARD0ORTAL WHICHARE
SKILLSEXPERIENCEANDDIVERSITYOFPERSPECTIVESAPPROPRIATETOTHE ACCESSEDBYTHE$IRECTORSELECTRONICALLYONTHEIRELECTRONICDEVICES
#OMPANY4HEIREXPERIENCERANGESFROMCOREOILGASRESEARCH INASECUREDMANNER
BUSINESSLAWlNANCEECONOMICSANDACCOUNTSTOADMINISTRATION
4HECURRENTCOMPOSITIONOFTHE"OARDISGIVENBELOW
4HECHANGESINTHECOMPOSITIONOFTHE"OARDOF$IRECTORSTHATTOOK
PLACE DURING THE YEAR 
 WERE CARRIED OUT IN COMPLIANCE
WITHTHEPROVISIONSOFTHE#OMPANIES!CT

Overview of the Board

7HOLE TIME%XECUTIVE$IRECTORS

3HRI3ANJIV3INGHYEARS 3HRI'+3ATISHYEARS $R3362AMAKUMARYEARS 3HRI"62AMA'OPALYEARS

#HAIRMAN $IRECTOR0LANNING"USINESS $IRECTOR2ESEARCH $IRECTOR2ElNERIES
'RADUATEIN#HEMICAL $EVELOPMENT $EVELOPMENT 'RADUATEIN#HEMICAL
'RADUATEIN-ECHANICAL
%NGINEERING %NGINEERING0OST 'RADUATEIN $OCTORATEIN#HEMISTRY %NGINEERING
-ANAGEMENT

3HRI2ANJAN+UMAR-OHAPATRAYEARS 3HRI'URMEET3INGH58 YEARS 3HRI!KSHAY+UMAR3INGHYEARS

$IRECTOR(UMAN2ESOURCES $IRECTOR-ARKETING $IRECTOR0IPELINES
'RADUATEIN-ECHANICAL%NGINEERING 'RADUATEIN-ECHANICAL
'RADUATEIN-ECHANICAL
AND0OST 'RADUATE IN-ANAGEMENT
%NGINEERING %NGINEERING
 60th Annual Report 2018-19 17

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
#OMMUNICATIONS%NGINEERAND 'RADUATEIN%CONOMICS
0OST 'RADUATEIN%CONOMICS

Description of
Capitals
.ON %XECUTIVE)NDEPENDENT$IRECTORS

Directors and others

Board of
Directors’
Report
3HRI0ARINDU+"HAGATYEARS 3HRI6INOO-ATHURYEARS 3HRI3AMIRENDRA#HATTERJEEYEARS 3HRI#2"ISWALYEARS

Discussion & Analysis

)NDEPENDENT$IRECTOR )NDEPENDENT$IRECTOR )NDEPENDENT$IRECTOR )NDEPENDENT$IRECTOR
'RADUATEIN#HEMICAL 'RADUATEIN3CIENCEAND )!3/FlCER AND0OST )!3/FlCER AND0OST

Management’s
%NGINEERING,AW 0OST 'RADUATEIN4RANSPORT 'RADUATEIN0HYSICS 'RADUATEIN0HYSICS
$EVELOPMENT

Responsibility Report
Business
Report on Corporate
Governance

$R*AGDISH+ISHWAN66 YEARS 3HRI3ANKAR#HAKRABORTIYEARS 3HRI$33HEKHAWAT47 YEARS

)NDEPENDENT$IRECTOR )NDEPENDENT$IRECTOR )NDEPENDENT$IRECTOR
)NDIAN&OREST3ERVICE/FlCER 'RADUATEIN0HYSICSAND-"! #HARTERED!CCOUNTANT
Statements

 AND0OST 'RADUATEIN

Financial

-ATHEMATICS
 18 Indian Oil Corporation Limited 2nd Integrated Annual Report

Committees of the Board

)NDIAN/ILISCOMMITTEDTOFOLLOWINGTHEBESTPRACTICESOFCORPORATE STRUCTUREOFTHE#OMPANY4HEYHAVEBEENCONSTITUTEDUNDERTHE
GOVERNANCEANDTHE"OARDISRESPONSIBLEFORENSURINGTHESAME4HE FORMALAPPROVALOFTHE"OARDTOCARRYOUTCLEARLYDElNEDROLES
#OMMITTEESOFTHE"OARDPLAYASIGNIlCANTROLEINTHEGOVERNANCE

Statutory Board Committees

Audit Committee Nomination and Stakeholders' Corporate Risk Management

Remuneration Committee Relationship Committee Social Responsibility & Committee
Sustainable Development
Committee

Other Board Committees

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"OARDWHICHINTURNSUPERVISESTHEEXECUTION
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

Directors and others

EXPANSIONOFRElNINGCAPACITY
#ONTINUED4HRUSTON2ESEARCH • 2EACHINGEVERYNOOKANDCORNEROFTHE
• %STABLISHINGSTRONGPRESENCEACROSSTHENATURAL
GASVALUECHAIN
AND4ECHNOLOGY COUNTRYTHROUGHEXPANSIONOFMARKETING

Board of
ANDDISTRIBUTIONNETWORK • )NVESTINGTOIMPROVEFUELQUALITYTOMEETFUTURE
• #OMMERCIALISATIONOFPROCESS REGULATORYNORMS
• )MPROVINGCUSTOMER
TECHNOLOGIESANDNOVELPRODUCTS
SERVICEWITHVALUE • !CHIEVINGAGREENERPRODUCTPORTFOLIOBY
DEVELOPEDINHOUSE
ADDEDPRODUCTS INVESTINGINALTERNATIVERENEWABLEFUELS
• )NVESTINGINRESEARCHINAREASOF
ANDSERVICES
BIO ENERGYALTERNATIVEENERGYNANO
TECHNOLOGYANDPETROCHEMICALSTODERIVE
COMPETITIVEADVANTAGE

Directors’
Report
%NHANCING6ALUE0ROPOSITION
THROUGH)NTEGRATED6ALUE#HAIN

Discussion & Analysis

• )NTEGRATINGUPSTREAMASSETSINTOTHEVALUE
CHAINFOREQUITYOILGAS

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

Business
• -AKINGOPERATIONSRESOURCE AND
ENERGY EFlCIENTENHANCINGCUSTOMER
EXPERIENCETHROUGHDIGITALISATION
$ELIVERING"USINESS Report on Corporate
• 2EDUCINGCOSTSANDENHANCINGSAFETY
2ESPONSIBILITY2ESPONSIBLE
ANDRELIABILITYOFOPERATIONSFOR
"USINESS
"UILDING3TRONG#OLLABORATIONS ENHANCEDPRODUCTIVITY
Governance

• -AKINGOPERATIONSGREENERANDREDUCING AND0ARTNERSHIPS • %NHANCINGCUSTOMEREXPERIENCE

ENERGYINTENSITYOFTHE#OMPANY THROUGHDIGITALISATION
• "UILDINGSTRATEGICALLIANCESIN)NDIAAND
• !DOPTINGLONG TERMACTIONPLANFORREDUCING
ABROADTOCREATESYNERGISTICVALUES
SPECIlCCARBONANDWATERFOOTPRINTS
• .URTURINGSTART UPSENVIRONMENT
• &OCUSSINGONRECYCLINGTOBECOMEPLASTIC
TOFOSTERINNOVATIONANDACHIEVE
NEUTRALORGANISATION
COMPETITIVEADVANTAGE
Statements
Financial

• 0ARTNERINGWITHOTHER#03%SFOR
SECURINGUPSTREAMOILGASASSETS
 20 Indian Oil Corporation Limited 2nd Integrated Annual Report

TARGETS AND IMPLEMENTATION PLAN

Refining Marketing Pipelines

Targets Targets Targets

„ Maintain leadership in refining capacity (150
MMTPA)
„ Optimise internal energy consumption
Implementation Plan
„ Greenfield and brownfield capacity expansions
„ Sustained energy efficiency/conservation
measures
R&D
„ Sustained market leadership in all business
segments
„ Optimised distribution network
„ Marketing of alternative energy options
Implementation Plan
„ Expand fuels and LPG retailing in rural markets
„ Automation and modernisation of fuel stations
„ Enhance customer services through digital
transformation
„ Bio-CNG and EV-charging options
„ Enhance pipeline evacuation from 57% currently
to 82%
„ Expand natural gas pipelines grid
„ Crude oil supplier to inland refineries
Implementation Plan
„ Building pipelines for product positioning at
demand centres
„ Capacity additions in crude oil handling
infrastructure

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/ILHASACOMPREHENSIVEROBUST 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

Directors and others

+0)SOFTHE2ISKS +0)SOFTHE2ISKS +0)SOFTHE2ISKS +0)SOFTHE2ISKS +0)SOFTHE2ISKS

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

Discussion & Analysis

-". THROUGHPUT
-ITIGATION0LAN • %XTENSIVEMONITORING INFRASTRUCTURE • 0ERIODICREVIEWAND
OFCRITICALACTIVITIES • %XPANSIONOFEXISTING ASSESSMENT
-ITIGATION0LAN

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

.ON EXHAUSTIVELIST Report on Corporate

Governance

Electric Tax disputes Environmental Cyber-security Safety

Statements
Financial

Risks on mobility and litigation risks risks risks

radar
 22 Indian Oil Corporation Limited 2nd Integrated Annual Report

Opportunity
$ESPITEGLOBALECONOMICSLOWDOWN)NDIANECONOMYWITNESSEDA ENERGYMIXANDTHENEEDFORINTERNATIONALCOOPERATIONANDFOREIGN
REMARKABLEGROWTHANDCONTINUEDTOBETHEFASTESTGROWINGLARGE INVESTMENT
ECONOMY4HISGROWTHWASATTRIBUTEDTOPRIVATESPENDINGINDUSTRY
4HOUGH IT IS EVIDENT THAT )NDIAS ENERGY DEMAND WILL GROW IN
MANUFACTURINGANDCAPITALFORMATION)NDIANECONOMYISEXPECTED
FUTURE THERE ARE CRITICAL CHALLENGES THAT THE COUNTRY MIGHT FACE
TOGROWINTHEYEARSTOCOMEALSOWHICHISAPOSITIVESIGNFORTHE
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)NDIATHE#OMPANYISGEAREDTO
REFORMS IN )NDIAN ENERGY SECTOR HAVE CREATED AN ATMOSPHERE OF LEVERAGEITSCAPABILITIESEXPERIENCEANDINNOVATIONTOACHIEVEITS
EXCITING OPPORTUNITIES FOR THE #OMPANY -AJOR POLICY DECISIONS LONG TERMGOALSANDDRIVESUSTAINEDGROWTH
DURING THE YEAR WERE SHAPED BY ENVIRONMENTAL CONCERNS FOCUS
ONRENEWABLESANDALTERNATIVESIMPORTANCEOFNATURALGASINTHE

 
!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 • %XPANSIONCOLLABORATIONSAND
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
BUNKERINGOVERSEASBUSINESS,.' 4.0 DOMAINOFPREDICTIVEMAINTENANCE
BYROAD /PPORTUNITY REAL TIMEINTEGRATEDDATADRONES
FORSURVEILLANCEWHICHCANREDUCE
-EGACHANGESIN COSTSENHANCEEFlCIENCYAND
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
4HE #OMPANY BELIEVES THAT EFFECTIVE STAKEHOLDER ENGAGEMENT IS
VITAL FOR THE SUSTAINED GROWTH OF BUSINESS AND IS THE FOUNDATION
CENTRIC APPROACH WHICH
OF GOOD CORPORATE GOVERNANCE 4O KEEP THE #OMPANY ABREAST OF
STRUCTURED MANNER USING VARIOUS MODES OF ENGAGEMENT 4HE
#OMPANYMAINTAINSASYMBIOTICANDSYNERGISTICRELATIONSHIPWITH
ITS STAKEHOLDERS BY EMBRACING A PEOPLE
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

Stakeholder Engagement Process

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

Discussion & Analysis

Media Surveys, Employee Website
Portal

Management’s
Responsibility Report
Business
Industry / Trade Business Partners/
Associations Contractors Community
Report on Corporate

Meetings, Seminars, Dealer/Distributor Awareness

Governance

Workshops Conventions, Programmes,

Transporter Meets, Meetings, Public
Meetings with Hearings, CSR
Contractors/Vendors, Projects,
Seminars/Workshops, Sponsorships
etc.
Statements
Financial
 24 Indian Oil Corporation Limited 2nd Integrated Annual Report

4HROUGHEFFECTIVESTAKEHOLDERENGAGEMENTANDCOLLABORATION)NDIAN/ILAIMSATTHEFOLLOWING

Objectives of Stakeholder Engagement

Effective Evaluating stakeholder Reviewing action Ensuring inclusion of Enhancing

monitoring of concerns and taken for redressal stakeholders in triple transparency and
stakeholder issues developing action plan of issues bottom line growth accountability

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
UNDERFOURBROADCATEGORIESVIZ%CONOMIC%NVIRONMENTAL3OCIAL AREENLISTEDINTHEREPORT
AND #ORPORATE 'OVERNANCE  #OMPLIANCE 4HESE MATERIAL ISSUES

Material Issues of IndianOil

#USTOMER3ATISFACTION 3UPPLY#HAIN-ANAGEMENT %NERGY%FlCIENCY

(IGH

"RAND6ALUE /CCUPATIONAL(EALTH3AFETY -ANAGING%NVIRONMENTAL)MPACT

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

)NDIRECT%CONOMIC)MPACT 3USTAINABLE0ROCUREMENT #ORPORATE3OCIAL2ESPONSIBILITY

,OW

7ORKFORCE$IVERSITY 'EO POLITICAL2ISK

%CONOMIC %NVIRONMENTAL 3OCIAL #ORPORATE'OVERNANCEAND#OMPLIANCE

 60th Annual Report 2018-19 25

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

Directors and others

„ Carrying out energy audits across locations and identifying areas to improve energy
efficiency
„ Implementing ENCON measures across locations to enhance 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

Discussion & Analysis

Occupational Health „ Undertaking safety training and awareness programmes
& Safety „ Undertaking Quantitative Risk Analysis (QRA)

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

„ Provision for process safety to prevent spills/leaks of hazardous substances Business

Report on Corporate
„ Control spills at sea during transportation/loading/unloading of petroleum products
Spills/Leaks
„ Safety training to retail/bulk customers on safe usage of petroleum products
Governance

„ In-house research & development on spill remediation

„ Upgrading refineries for supply of BS-VI compliant fuel

Product & „ Continuously developing in-house technologies to improve quality of products and
Operational Efficiency efficiency of operations
Statements
Financial

„ Developing environment-friendly bio-remediation technologies

 26 Indian Oil Corporation Limited 2nd Integrated Annual Report

VALUE CREATION MODEL

INPUTS

Financial Capital Manufactured Capital Intellectual Capital

Total Equity: 9 refineries, 69.20 MMTPA R&D expenditure of ` 437.34 crore
` 1,08,658 crore of refining capacity Funding of ` 20 crore approved in 13
Total Expenses: 14,231 km of cross- start-ups in second round of Start-up
` 4,98,180 crore country pipelines Fund Programme

3 petrochemical complexes Developed patented IndeDiesel® technology

Total Borrowings:
` 86,359 crore Demonstration of patented technology for producing
Upstream portfolio of
H-CNG from CNG
IndianOil consists of
10 domestic and Set up the world's first CO2-to-lipids pilot project
12 overseas assets

Human Capital Social & Relationship Capital Natural Capital

Workforce of 33,498 ` 490.60 crore spent on CSR Capital expenditure of
people Free coaching to 56 ` 136 crore in
More than 3,000 under-privileged girls for alternative energy
training programmes Engg. entrance exams 22,59,61,690 MMBTU
1,23,754 employee training mandays Skilling programmes across India, including Skill of energy consumed
Conceptualised and introduced ‘one-of-its-kind’ Development Institute, Bhubaneshwar, the premier
608 rainwater harvesting
Women Leadership Programme skilling centre
units installed on a
Main campus of Skill Development Institute Extended primary, secondary & tertiary healthcare cumulative basis
(SDI), Bhubaneswar, managed by IndianOil services
th
inaugurated on 24 February 2019 Assistive devices to divyangjan (specially abled people)

BUSINESS PROCESSES

VALUES VISION ELEMENTS

ng Re
rketi fin
Ma eri Ethics
Care es
Development

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

Financial Capital
Generated revenue of
` 6,05,924 crore
from operations
Profit for the Year
` 16,894 crore
EBITDA: ` 36,952 crore
Human Capital
Attrition rate: less than 1%
20 enthusiastic and proud IOCians
(women leaders) received their
certificates from Chairman during the
‘Graduation Ceremony’
Financial Capital
` 1,93,422 crore paid to
the exchequer in the form
of duties and taxes
Debt Equity ratio improved
from 1.3 to 0.79 over the
years
Human Capital
Making people ‘Future-Ready’
through focussed developmental
initiatives
Promoting women leaders
through Women Leadership
Development Programme
Ensuring internet-based learning
system for employees
The Energy of India - Driving Growth. Energising Lives
60th Annual Report 2018-19 27
About the
Report
OUTPUTS
Chairman’s Desk
Manufactured Capital Intellectual Capital
71.82 MMT of crude oil 160 patents filed and 107 earned
From the
throughput (2018-19); Total active patents = 790
Pipeline network achieved 88.53 H-CNG ensures fuel economy benefits
MMT throughput and 1834 and reduces CO and HC emissions
MMSCM of gas throughput
Reduced emissions and production of
About IndianOil
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
Social & Relationship Capital Natural Capital
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
Through skill development, 388 GWh
Directors and others
more than 15,000 unemployed
Energy conservation (ENCON)
youth got benefited
projects implemented in 2018-
Healthcare services extended to 19 estimated to have saved
Board of
more than 14 lakh beneficiaries 82,078 MT Standard Refinery
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
Manufactured Capital Intellectual Capital
Ensuring energy security to the nation ®
IndeDiesel technology earned Petrotech-2019
Discussion & Analysis
Special Technical Award for “Greening of the
An efficient and convenient mode of Oil and Gas Business and Sustainability”
Management’s
transporting crude / finished products as
compared to road / rail transport resulted in Innovative technologies such as ‘CO2-to-lipids
savings of 13,29,271.83 tCO2e plant’ and ‘H-CNG technology’ offer a
of emissions significant opportunity to reduce greenhouse
gas emissions
Upstream integration and
Responsibility Report
reduced import dependence Established innovative technology and business
process re-engineering ideas through start-ups
Business
Social & Relationship Capital Natural Capital
More girls in Engineering Harvested rainwater equivalent to 3% Report on Corporate
colleges of IndianOil’s freshwater consumption
Skilled manpower made Renewable energy generation is
Governance
available for the industries equivalent to 5% ofIndianOil’s
electricity consumption
Made available
free/affordable healthcare Estimated reduction of
2,55,000 tCO2e of
Improved living standards/
emission through
livelihood of divyangjan
ENCON projects
Statements
Financial
 28 Indian Oil Corporation Limited 2nd Integrated Annual Report

DESCRIPTION OF CAPITALS

FINANCIAL CAPITAL

Endeavouring to transform business paradigm

With focussed approach to creating and managing stakeholder )NDIAN/ILISCONTINUOUSLYDELIVERINGGROWTHINCHALLENGINGlNANCIAL
value, IndianOil is delivering operational excellence by judiciously
allocating and using its resources.
The Company has tools in place for critical assessment of capital
structure through forecasting and budgeting. The Company, with
MARKETCONDITIONSmUCTUATINGCOMMODITYPRICESEXCHANGERATES
and petroleum product prices while maintaining a healthy bottom
line with the highest ever revenue by a company in India. The
Company continues to remain among the world’s largest corporates
in the prestigious Fortune ‘Global 500’ listing.
ITS COMFORTABLY PLACED LEVERAGE PROlLE HAS RETAINED THE HIGHEST
domestic rating from credit rating agencies. The Company has To propel future growth, the Company has expended over ` 24,500
been able to manage its liquidity requirement through a prudent crore on capital projects on standalone basis. In addition, about
mix of borrowings and internal accruals. In its endeavour to remain `  CRORE WAS SPENT ON CAPITAL EXPENSES THROUGH 3PECIAL
AT THE FOREFRONT OF IMPLEMENTATION OF lNANCIAL TECHNOLOGIES THE
#OMPANY HAS EXECUTED ITS lRST "LOCK #HAIN 4RANSACTION AND
BECOMETHElRSTCORPORATETOINTEGRATETHE42E$3PLATFORMWITH
ITS%20PLATFORM4HE#OMPANYHASALSOBECOMETHElRST035IN
THEOILSECTORTOHAVESUCCESSFULLYMIGRATEDTO3!03UITEON(!.!
0URPOSE6EHICLE306 )NVESTMENTIN'ROUPCOMPANIES)NDIAN/IL
plans to invest around ` 2 lakh crore in the next 5-7 years to evolve
into a future-ready company that provides comprehensive energy
solutions to diverse user groups.
)NDIAN/IL HAS A DEDICATED WELL DElNED AND ROBUST POLICY
3/( ,3#,OCAL3HORT#REDIT PROCESSHASALSOBEENAUTOMATED
FRAMEWORKFORlNANCIALGOVERNANCEDETAILSOFWHICHAREAVAILABLE
FORTHElRSTTIMEIN)NDIABYANYBANKFORA#OMPANY
INTHEh#ORPORATE'OVERNANCEv3ECTIONOFTHIS2EPORT

4HEDETAILSOFVARIOUSPERFORMANCEINDICATORSUNDERlNANCIALCAPITALFORTHEPERIOD TO AREASUNDER

Continues to maintain debt-to-equity (D/E) ratio < 1

Mantaining Capital Structure

250000 1.00
0.79
200000
0.60 0.53 0.75
0.55
150000
86359
52880 54820 58030 0.50
100000

88135 99729 110171 108658 0.25

50000

0 0.00
2015-16 2016-17 2017-18 2018-19

Equity (` CRORE $EBT` CRORE $EBTTO%QUITYRATIO

 60th Annual Report 2018-19 29

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

300000 406828 445442 506428 605924 20000

Description of
200000
10000

Capitals
100000

0 0

Directors and others

2015-16 2016-17 2017-18 2018-19

Board of
2EVENUE` CRORE %")4$!` CRORE

Directors’
Report
Consistent increase in contribution to Government

Discussion & Analysis

Management’s
Operating Cash Flow before Contribution to Exchequer
Working Capital Changes (` crore) (` crore)

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

Operating Cash Flow (` CRORE Contribution to Exchequer (` CRORE

Statements
Financial
 30 Indian Oil Corporation Limited 2nd Integrated Annual Report

Dividend to Shareholders and Cumulative Dividend (since inception)

70000

60018
60000

51109
50000

39940
40000

30714
30000

20000

9226 11169
8909
10000
3399

0
2015-16 2016-17 2017-18 2018-19

$IVIDENDFORCURRENTYEAR` CRORE  #UMULATIVE$IVIDEND` CRORE

Dividend Payout Ratio and Dividend Yield

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

%XPENSES 0ROlT • %MPLOYEES` 11,102 crore

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
$URINGTHEYEARTHE#OMPANYHASRAISEDLONG TERM%#"LOANSOF53$BILLIONTHROUGH

Directors and others

SYNDICATED BANK LOANS AND BONDS FROM THE INTERNATIONAL MARKET WHEREIN 53$ 
MILLIONWERERAISEDTHROUGHASINGLESYNDICATIONSURPASSINGTHEPREVIOUSBESTOF53$
MILLION4HEFOREIGNCURRENCYBONDISSUANCEOF53$MILLIONWASALSOTHEHIGHESTEVER

Board of
AMOUNTMOBILISEDBYANY)NDIAN035UNDER2EG3FORMATINASINGLETRANCHE
-OODYSHASAFlRMED)NDIAN/ILRATINGASh"AAv3TABLE WHILE&ITCHHASREAFlRMEDTHE
RATINGOFh""" vWHICHSIGNIlESTHE#OMPANYSSTRONGOPERATIONALANDSTRATEGICLINKAGES
INLINEWITH&ITCHS0ARENT 3UBSIDIARYLINKAGECRITERION2ATINGPROVIDEDISSAMEAS)NDIAS
3OVEREIGNRATING

Directors’
Report
MANUFACTURED CAPITAL

Discussion & Analysis

Management’s
Fortifying infrastructure to rewrite success story
In the oil & gas sector, manufactured capital is a vital element The Company has an extensive network of pipelines across the
for driving and sustaining growth and delivering better customer length and breadth of the country with a total length of 14,231
EXPERIENCE $URING THE YEAR )NDIAN/IL HAS ACHIEVED LANDMARK
milestones in developing infrastructure, which in turn has accelerated
the Company’s growth trajectory. This infrastructure growth is also
enabling the Company in meeting the future energy needs of the
nation.
IndianOil leverages its extensive infrastructure to hold a competitive
market position in the oil & gas industry. To sustain its market
KM  MILLION TONNES OF CRUDEPRODUCT PIPELINE THROUGHPUT
Responsibility Report
CAPACITY AND  --3#-$ OF GAS PIPELINE CAPACITY )NDIAN/IL
has also registered the highest sales of 79.96 million metric tonnes
of petroleum product sales this year. The petrochemical’s sales
Business
INCREASED BY  TO  --4 WHILE THE SALE OF CRYOCANS AND
cryovessels increased to 29,555 units from 28,872 units.
Report on Corporate
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#OMPANYINCLUDINGITS*6SANDSUBSIDIARIES
has invested over `28,100 crore during the year to add to its
infrastructure facilities.
The Company achieved the highest ever crude oil throughput of
MILLIONMETRICTONNESWITHACAPACITYUTILISATIONOF
$ISTILLATEYIELDOFTHERElNERIESWAS4HERElNERIESAREWELL
POISEDTOROLLOUT"3
6)FUELSWEFINTHEENTIRECOUNTRY and socially sustainable manner.
AS WELL AS TO MEET THE )-/ )NTERNATIONAL -ARITIME /RGANISATION 
2020 guidelines to reduce the sulphur content in bunker fuel.
previous year’s volume of 1,76,757 metric tonnes. To expand its
reach in rural parts of India, the Company opened 335 ‘Kisan Seva
Kendra’ outlets in rural areas.
In its quest to be ‘The Energy of India,’ IndianOil is preparing itself,
through augmenting infrastructure and building capacity, to meet
the changing energy needs of the consumers in an environmentally
Statements
Financial
 32 Indian Oil Corporation Limited 2nd Integrated Annual Report

Case Studies
Highlights of Refinery Projects

Namami Gange • -ATHURARElNERYWILLBETHElRSTRElNERYTOUSEEFmUENTDISCHARGEANDSEWAGEWATERFOR

Project industrial use
(Utilisation of sewage • 2ElNERYWILLUSE-,$OFTREATEDWATERFROMTHESEWAGETREATMENTPLANTLOCATEDAT9AMUNA
WATERIN2ElNERY RIVERBANKIN-ATHURA
• 2EHABILITATIONOF340ANDLAYINGOFTHEPIPELINEWILLBECOMPLETEDBY/CTOBER4HEPLANTWILL
be commissioned by January 2021. The Company will procure the water at `M3

• This project will leverage the latest IT tools to enhance the organisation’s productivity and market
iDrive SHAREWHICHWILLRESULTINPOTENTIALVALUECREATIONOF53$ "N
(A digitalisation • #OMPANYHASIDENTIlEDINITIATIVESACROSSTHEMESTOBRIDGETHETECHNOLOGYGAPINCLUDING
INITIATIVEOF2ElNERY drone-based pipeline monitoring, virtual reality based e-learning, block chain inspired supply
chain tool, etc.
• !$IGITAL#ENTREOF%XCELLENCEISBEINGDEVELOPEDTOENABLETECHNOLOGYTRANSFORMATION

Highlights of Pipeline Projects

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!CAPACITYTHISPIPELINEWILL Pipeline • /NCEFUNCTIONALITWILLTRANSPORT-3
through JV CONNECTPORTSRElNERIESBOTTLINGPLANTS (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

Highlights of Petrochemicals Projects

New Polymer
• $URING )NDIAN/ILDEVELOPEDTHREEGRADES%'-,3
Development
• /%-APPROVALRATEDURINGTHEYEARJUMPEDTOFROMINTHEPREVIOUSlNANCIALYEAR
• -AJORSECTORSCOVEREDUNDER/%-APPROVALSARE&-#'!PPLIANCEAND!UTOMOTIVE

Related Sustainability Development Goals (SDGs)

 60th Annual Report 2018-19 33

About the
Report
Growth Highlights of Manufactured Capital

50,847 Touch-Points Domestic POL Sales (MMT)

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

Directors and others

20

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

Discussion & Analysis

"ITUMEN !4& &/,3(3 .APTHA Others

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

2017-18 2018-19 2019-20 Going

Financial

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

2014-15 2015-16 2016-17 2017-18 2018-19

-30RODUCTION4-4 (3$0RODUCTION4-4 #RUDE0ROCESSING4-4 (3#RUDE4-4

3+/4-4 &URNANCE/IL4-4 -".

Over the period (2014-15 to 2018-19):

• #RUDEOILPROCESSINGHASINCREASEDFROM4-4TO4-4WHEREASSPECIlCENERGYCONSUMPTIONHASREDUCEDFROMTO
-".
• 0ROCESSINGOFHIGH SULPHURCRUDEHASINCREASEDFROM4-4TO4-4WHICHRESULTEDINDECREASEINOVERALLCOST
• )NCREASE IN PRODUCTION OF HIGH VALUE PRODUCTS -3 (3$  ACCOMPANIED BY DECREASE IN PRODUCTION OF LOW VALUE AND HIGH CARBON CONTENT
PRODUCTS3UPERIOR+EROSENE/IL&URNACE/IL

Snapshot of Pipeline Infrastructure

140 16000
14231
120 13391 14000
12848
11746 12000

Pipeline Length (km)

Thoughtput capacity

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

0RODUCT--40! ,0'--40! #RUDE--40!

'AS--3#-$ 2EDUCTIONIN%MISSIONS 0IPELINE,ENGTHKM

Over the time-period (2015-16 to 2018-19):

• #RUDEOILTHROUGHPUTCAPACITYINCREASEDFROM--40!IN TO--40!IN 
• 'ASTHROUGHPUTCAPACITYINCREASEDFROM--3#-$IN TO--3#-$IN 
• ,0'THROUGHPUTCAPACITYINCREASEDFROM--40!IN TO--40!IN 
 60th Annual Report 2018-19 35

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

Directors and others

• -ORETHANCRORENEW,0' • /VERCRORE "0,FAMILIESGOT)NDANE,0'CONNECTIONS
connections were released during under Pradhan Mantri Ujjwala Yojana0-59
the year across India

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

• 3 petrochemical • --4OFPETROCHEMICAL • 3ECONDLARGESTPETROCHEMICALSPLAYERIN)NDIA

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

Discussion & Analysis

customised products

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

• 5PSTREAMPORTFOLIO • 0RODUCTIONVOLUMEFROM%0 • 5PSTREAMINTEGRATION

of IndianOil ASSETSROSEFROM--4TO • 2EDUCINGIMPORTDEPENDENCEWITHEQUITYOIL
consists of 10 --4
$OMESTIC"LOCKS
and 12 overseas
Statements
Financial

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!DDITIONALLYCONSISTENTEMPATHYANDEMOTIONALOWNERSHIPHELPUSACHIEVEEMPOWEREDANDHAPPYTEAMS
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

Great Place to work

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%

Staff Attrition Rate

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

YoY increase in average training mandays

Description of
Training Mandays

Capitals
2018-19 4.21
2017-18 4.20

Directors and others

2.60
2016-17

2015-16 2.45

Board of
2014-15 2.31

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

YoY reduction in average age of employees

Directors’
Report
Average age of employees (in years)
45

Discussion & Analysis

44
44
43 43

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

Consistent increase in focus on employees Report on Corporate

Employees Expenses (` crore)

Governance

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

Benchmarking of HR Practices Sponsoring Officers for Higher Studies

IndianOil conducted an in-depth assessment of its people
policies and practices through an independent assessment
carried out by a renowned international consultant, as
PER THE 0EOPLE #APABILITY -ATURITY -ODEL 0#--  ON
THREEINTERRELATEDCOMPONENTSIN(2
The concept of democratisation of learning blended with
promotion of meritocracy in the organisation has been
expanded by introducing a policy to sponsor our talent to
executive management programmes at select management
0EOPLE 0ROCESSAND SCHOOLS NAMELY ))-S n !HMEDABAD "ANGALORE #ALCUTTA
Technology. ,UCKNOW AND -$)
'URUGRAM AFTER THEY SECURE ADMISSION
through the rigorous selection process of these institutes,
The study helped in identifying ‘strength areas’ and ‘action
WHICHINCLUDES'-!4EXAMINATION'$ANDINTERVIEW
AREAS FOR IMPROVEMENT IN VARIOUS (2 PROCESSES AND
accordingly developing an action plan for resolution. $URING&9
BRIGHTEXECUTIVESOFTHE#OMPANY
have secured admissions though the highly competitive
PROCESSINVARIOUS"
3CHOOLS

Related Sustainability Development Goals (SDGs)

 60th Annual Report 2018-19 39

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

includes an overseas learning module where the participants visited
THE #OMPANYS OFlCES IN 3RI ,ANKA AND -AURITIUS 4HE UNIQUE
endeavour facilitated enhancement of leadership capabilities of
Capitals
» BUILDINGASUPPORTNETWORKGROUPAMONGSTWOMENLEADERS
» becoming more effective at the workplace
» developing an action plan for performance excellence and

Directors and others

THEPARTICIPATINGWOMENOFlCERSBY goal achievement

» 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

Discussion & Analysis

AND.ON EXECUTIVES • !VERAGEAGEOFEXECUTIVES internet-based learning management
• -ORETHANTRAININGPROGRAMMES reduced over last 5 years from system for ‘anytime’, ‘anywhere’, ‘any-

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
3TAFlNG7ORK%NVIRONMENT
• #ONDUCTEDASTUDY@"ENCHMARKINGOF(2 enabling organisational culture
0ERFORMANCE-ANAGEMENT
0RACTICES
4RAINING$EVELOPMENT • Creating future leaders by sponsoring
• &OCUSSEDINITIATIVESUNDERTAKENINCLUDING(2 #OMPETENCY!NALYSIS OFlCERSFORHIGHERSTUDIES

Business
Facilitator initiative $EVELOPMENT7ORKFORCE • 0ROMOTINGWOMENLEADERSTHROUGH
• Conceptualised and introduced ‘one-of-its- 0LANNING0ARTICIPATORY 7OMEN,EADERSHIP$EVELOPMENT
KIND7OMEN,EADERSHIP0ROGRAMME #ULTURE-ENTORINGETC 0ROGRAMME Report on Corporate
• -AINCAMPUSOF3KILL$EVELOPMENT)NSTITUTE • 20 enthusiastic and proud • Ensuring respect towards all employees
3$) "HUBANESWARMANAGEDBY)NDIAN/IL )/#IANSWOMENLEADERS  BYLAUNCHOFh%QUAL/PPORTUNITY0OLICYv
Governance

inaugurated on 24 February 2019, imparts RECEIVEDTHEIRCERTIlCATES

• -AKINGPEOPLE@FUTURE READYTHROUGH
training in 6 trades, viz, Welder, Electrician, from Chairman during the
focussed developmental initiatives
#OMPUTER$ATA!PPLICATIONFORGIRLS&ITTER ‘Graduation Ceremony’
&ABRICATOR4ECHNICIAN)NSTRUMENTATION AND • Inculcating solutions-based approach
• Over 500 youths trained at
0IPE&ITTERn#'$ among employees- by observing 2019
3$)"HUBANESWARIN 
ASTHE@9EAROF3OLUTIONS
• )#4 )/#"HUBANESWAR#AMPUSCOMMENCED
lRSTACADEMICSESSIONINTHEYEAR  • !LLTHEYOUTHSWHOCOMPLETEDTRAININGAT
Statements

3$)"HUBANESWARRECEIVEDJOBOFFERS

Financial
 40 Indian Oil Corporation Limited 2nd Integrated Annual Report

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$#ENTRE
4OENABLEFUTURERESEARCHPLANSOFTHE2$CENTREWITHBEST IN CLASS2$FACILITIESASECOND2$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 $EAKIN 5NIVERSITY !USTRALIA
for collaborative research wherein students can register at the
respective universities and pursue research projects of mutual
INTERESTLEADINGTOAWARDOF0H$DEGREE#URRENTLY16 students
are pursuing research work under this programme.

IndianOil’s Aonla Depot, Uttar Pradesh

 60th Annual Report 2018-19 41

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

0 100 200 300 400 500 600 700 800 900

Directors and others

0ATENTS'RANTEDDURINGTHEYEAR 0ATENTS&ILEDDURINGTHEYEAR 4OTAL!CTIVE0ATENTS

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

Discussion & Analysis

437 437 435 441 433
400 327 400
317

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

2014-15 2015-16 2016-17 2017-18 2018-19

 42 Indian Oil Corporation Limited 2nd Integrated Annual Report

Case Studies

Greenhouse gases to Bio-fuels H-CNG Technology

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

)NDE$IESEL™TECHNOLOGYHASBEENDEVELOPEDFORHYDROTREATING • Operates at mild operating conditions with simpler and

OFDIESELSUITABLEFORMEETING"3 6)%URO 6)SPECIlCATIONS less expensive metallurgy
• $ESIGNEDFORQUICKSTARTUP SUITABLEFORRETAILlLLINGSTATIONS
Key Driving Factors
• #APABLE OF PRODUCING ( #.' MIXTURE OF DESIRED
• 4HE TECHNOLOGY OFFERS mEXIBILITY TO UPGRADE MIDDLE RANGE
composition for direct dispensing
straight-run-distillates, coker gas oil streams and light
cycle oil from catalytic cracking to low-sulphur, high-
CETANE DIESEL SUITABLE FOR MEETING 5,3$ 5LTRA ,OW
3ULPHUR$IESEL POOLREQUIREMENT

"ENElTS
• Cetane improvement by > 10 units
• Optimised feed preheat scheme offering cost-effective
designs considering both capital and operating costs
• %FlCIENTREACTORINTERNALS
• (IGHACTIVECATALYSTSYSTEM

Related Sustainability Development Goals (SDGs)

Trials underway by IndianOil R&D for operation of buses

using HCNG as fuel
 60th Annual Report 2018-19 43

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

"ENElTS • Ethanol will support the requirements for motor spirit

blends set by the Government of India

Directors and others

• (IGHERMETHANECONTENTINBIO GASLEADSTOBETTERHEATING
VALUEANDBURNINGEFlCIENCY • 2EDUCTIONINGREENHOUSEGASEMISSIONS

• "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

Discussion & Analysis

research manpower of 441 employees INCREASEFROM  4ECHNICAL !WARD FOR h'REENING
CONSISTINGOFSCIENTISTS ANDSUPPORTSTAFF • 4OTALACTIVEPATENTS OFTHE/ILAND'AS"USINESSAND

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$IESEL™TECHNOLOGYIMPLEMENTED 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

gas • Innovative technologies such

BENElTS AND REDUCES #/ AND (#
• 3ETUP THE WORLDS lRST #/2-to-lipids pilot emissions as ‘CO2-to-lipids plant’ and
project @( #.' TECHNOLOGY OFFER A
SIGNIlCANTOPPORTUNITYTOREDUCE
• $EMONSTRATION OF PATENTED TECHNOLOGY FOR
greenhouse gases emissions.
PRODUCING( #.'FROM#.'
• $URING   FUNDING OF ` 20 crore
Statements

approved in 13 start-ups in second round of

Financial

3TART UP&UNDPROGRAMME
 44 Indian Oil Corporation Limited 2nd Integrated Annual Report

SOCIAL AND RELATIONSHIP CAPITAL

)NDIAN/ILSCOMMITMENTTOBE@4HE%NERGYOF)NDIAISALSOREmECTEDINITS#32POLICYWHICHISLEDBYTHEPHILOSOPHYOFWORKINGCLOSELY
with the communities residing in the vicinity of the Company’s operations and beyond and enhance their quality of life. IndianOil has
BEENACTIVELYENGAGEDINAGAMUTOFSOCIALWELFAREUPLIFTMENTACTIVITIESACROSSTHENATIONINADDITIONTOREACHINGESSENTIALFUELSVIZ
+EROSENE,0'PETROLDIESELETCTOEVERYNOOKANDCORNEROFTHECOUNTRY)NDIAN/ILS#32PROJECTSAREUNDERTAKENINLINEWITH3CHEDULE
6))OFTHE#OMPANIES!CTAND#320OLICYAND'UIDELINESOF)NDIAN/ILWHICHHAVEBEENAPPROVEDBYTHE)NDIAN/IL"OARD

3AFEDRINKINGWATERANDPROTECTION (EALTHCAREANDSANITATION
of water resources

CSR
Thrust Areas
%MPOWERMENTOFWOMENANDSOCIALLY Education and employment-
economically backward groups enhancing vocational skills

)NDIAN/ILSTRIVESTOALIGNITS#32INITIATIVESWITHVARIOUSSCHEMES IMPLEMENTATIONOFANY#32PROJECTWHICHISCONDUCTEDTHROUGH

of the Govt. of India, viz, Pradhan Mantri Ujjwala Yojana, Swachh SITEVISITSANDDISCUSSIONCOMMUNICATIONWITHVARIOUSSTAKEHOLDERS
)CONIC 0LACE 3KILL )NDIA #LEAN 'ANGA -ISSION Swachh Bharat 0OST IMPLEMENTATION@)MPACT!SSESSMENTISCARRIEDOUTEITHERBY
Abhiyan, etc. IndianOil has been awarded for the innovative IndianOil or by an external agency as per policy.
swachhtaINITIATIVESUNDERTAKENRUNNERS UP DURINGTHESwachhta
$URING   MORE THAN  CRORE BENElCIARIES were
Pakhwada competition held during 01 July-15 July 2019, jointly
positively impacted through over 950 initiatives undertaken by
INSTITUTED BY THE -INISTRY OF 0ETROLEUM AND .ATURAL 'AS AND
IndianOil in various geographies across India.
-INISTRYOF$RINKING7ATER3ANITATION
$URING THE YEAR   THE ENTIRE #32 BUDGET ALLOCATION
!SPERTHE#32PROVISIONSOFTHE#OMPANIES!CT)NDIAN/IL
of `490.60 crore was spent, thereby achieving 100% budget
IMPLEMENTS #32 IN @PROJECT MODE !S PER THE #32 0OLICY
utilisation.
'UIDELINESOF)NDIAN/IL@NEEDASSESSMENTISTHElRSTSTEPTOWARDS

700
  

600 

491 491 
500


400
331 331

300
217 214 
161
200
157 

100 

0 
2015-16 2016-17 2017-18 2018-19

#32"UDGET`CR ,(AXIS #32%XPENDITURE`CR ,(AXIS "UDGET5TIL

 60th Annual Report 2018-19 45

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
ADMISSIONINPRESTIGIOUSENGINEERINGINSTITUTESVIZ))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

Directors and others

• -AXIMUM STRENGTH OF  GIRLS FOR EACH CENTRE SELECTION
• GIRLSTUDENTSENROLLEDFOR"HUBANESWAR#ENTREAND
through written test and personal interview
GIRLSFOR.OIDA#ENTRE

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,
WHICHCLEARED*%%!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"RAILLEKITSFORVISUALLYIMPAIREDHEARINGAIDS

Business
ARTIlCIALLIMBSETC

Activities Report on Corporate

• "ENElCIARIES SELECTED AND THEIR DISABILITIES ASSESSED

through assessment camps (organised in the villages near
Governance

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

Related Sustainability Development Goals (SDGs)

Skill Development Institute, Bhubaneshwar, Odisha

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
ANDCERTIlEDWITHOVERJOBPLACEMENTS

Related Sustainability Development Goals (SDGs)

IndianOil Gyanodaya Scheme in Govt. ITIs & Polytechnics

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

Directors and others

"ENElCIARIES

Board of
• 410 students have successfully completed the diploma
COURSETILLDATEWITHJOBPLACEMENTRECORD

Related Sustainability Development Goals (SDGs)

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-4ECH0ROGRAMMETHROUGH*%% -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

working professionals has been developed, jointly by ICT and

IIT Kharagpur, wherein the industry members will sponsor their
executives for upgrading their chemical engineering skills.
Statements
Financial
 48 Indian Oil Corporation Limited 2nd Integrated Annual Report

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
)))4SETCBALANCEGIRLSWILLJOIN
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
COOLERSETC=TOVARIOUSSCHOOLSACROSS)NDIA
IndianOil Kaushal Vikas  0ROVIDED SKILL -ORETHANUNEMPLOYEDYOUTH • 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 Aarogyam 0ROVIDED PRIMARY

secondary & tertiary healthcare services through
CONTINUINGmAGSHIPHEALTHCAREPROJECTS;VIZ -ORE THAN  LAKH BENElCIARIES • 0ROVIDED FREEAFFORDABLE  ACCESSIBLE
HOSPITALS AT "ONGAIGAON $IGBOI AND -ATHURA during 2018-19 healthcare
AND  -OBILE -EDICAL 5NITS PLYING IN ABOUT • Early detection of diseases
VILLAGESINTHEVICINITYOF2ElNERY5NITS
AT"ONGAIGAON-ATHURAAND0ARADIP=ANDNEW • $OOR STEPPREVENTIVEHEALTHCARESERVICES
HEALTHCARE INITIATIVES ;VIZ ORGANIZING HEALTH especially for the needy and the under-
eye check-up camps, provision of medical PRIVILEGEDPEOPLEINFAR mUNGRURALAREAS
EQUIPMENTTOVARIOUSHOSPITALSETC=

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 Swachh Parivesh -ORE THAN  LAKH  BENElCIARIES • !CCESSTOCLEANERFUEL,0'VSBIOMASS 

during 2018-19 FORRURAL"0,FAMILIES
• 0ROVIDED FREE ,0' CONNECTIONS TO "0,
households under Pradhan Mantri • 7OMENS lNANCIAL INCLUSION DUE TO
Ujjwala Yojana
• Installed waste-to-energy plants productive use of time and their overall
• #ONSTRUCTEDPUBLICHOUSEHOLDTOILETS empowerment
• 0ROVIDEDDUSTBINS
• Installed solar lights • 2EDUCTIONINHOUSEHOLDAIRPOLLUTION
• 5NDERTAKEN A MULTITUDE OF Swachhta • "ETTER QUALITY OF LIFE OF VARIOUS
related activities across various
stakeholders, especially in rural areas
geographies

IndianOil Divyangjan0ROVIDEDASSISTIVE -ORE THAN  divyangjan • Improved living standards, better
DEVICES;VIZMOTORISEDNON 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
MENTALLYRETARDEDAUXILLACRUTCHESETC=
 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 READYORGANISATIONTHE#OMPANYHASIDENTIlEDMATERIALISSUESTHATHAVETHEPOTENTIAL
TOIMPACTTHENATURALCAPITAL4HE#OMPANYHASDElNED+0)SANDMITIGATIONPLANTOADDRESSTHESEMATERIALISSUES)NORDERTODELIVER
BUSINESSRESPONSIBLYTHE#OMPANYISTAKINGSEVERALINITIATIVESTOENHANCEITSENERGYEFlCIENCYREDUCE'('EMISSIONWATERCONSUMPTION
& 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.

Directors and others

Case Studies

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

Discussion & Analysis

THE AIM OF PRODUCING #OMPRESSED "IO negative environmental impact CHAIN 3OLARISATION OF FUEL STATIONS IS ONE
'AS#"' FROMWASTEANDBIOMASS4HE of its products, IndianOil of IndianOil’s breakthrough initiatives in

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-
3OFARFUELSTATIONSWHICHISMORE
5000 plants. This initiative holds great trucks instead of steel barrels.
THANOFTHERETAILNETWORKHAVEBEEN
PROMISE FOR EFlCIENT MANAGEMENT OF This initiative has reduced the
converted to operate on solar energy with

municipal solid waste and in tackling
polluted urban air due to farm stubble-
BURNING AND CARBON EMISSIONS 5SE OF
Responsibility Report
consumption of steel barrels
ACUMULATIVEINSTALLEDCAPACITYOF-7
equivalent to 850 tonnes of steel.

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

Inputs Outputs Outcomes

• 608 rainwater harvesting units installed • 0OTENTIAL CREATED FOR HARVESTING • (ARVESTED RAINWATER IS EQUIVALENT TO 
on a cumulative basis about 3 billion litres of rainwater of IndianOil’s freshwater consumption
per year

•  --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
an overall cost of ` 44.81 crore
• Treated 45.17 million kl waste water
• 2ESPONSIBLE MANAGEMENT OF ORGANIC
waste through installation of 50 bio-gas
PLANTSORGANICWASTECOMPOSTERS
WATER
3TANDARD 2ElNERY &UEL PER ANNUM
equivalent to ` CROREYEAR
• 40.15 million kl of waste water
recycled
• -ORE THAN  TONNES OF ORGANIC
waste processed during the year
• 137 tonnes of waste paper recycled
in 2018-19
• $URING THE YEAR )NDIAN/IL ACHIEVED
its best performance on the following
PARAMETERS
• 3PECIlC ENERGY CONSUMPTION -". 
OFRElNERIESREDUCEDTO
• %NERGY )NTENSITY )NDEX %))  RATING
brought down to 97.9
• $ECLINEINFUELLOSSTO
• 2EDUCTIONINFRESHWATERINTAKEBY
by recycling the waste water generated in
operating locations
• 2ElNERIES REUSED  OF WASTE
generated
• !VOIDED EMISSION OF  T#/2e by
treating waste in organic waste converter
 BIOGAS PLANT INSTALLED WITHIN PREMISES
RATHERTHANSENDINGTHEWASTETOLANDlLL

• $EVELOPMENTOFGREENBELTAREAS • !BOUT  SAPLINGS WERE • Emission sequestration and restoring

planted in 2018-19. Cumulatively habitat in operating locations
more than 2 million saplings had • Estimated savings of 40,000 tCO2e
been planted of emissions during 2018-19 through
• 12 events made carbon neutral PLANTATIONSEQUESTRATION
 60th Annual Report 2018-19 51

About the
Report
BOARD OF DIRECTORS

Chairman’s Desk
1. Shri Sanjiv Singh Chairman

2. Shri G. K. Satish Director (Planning & Business Development)

From the
3. Dr. S. S. V. Ramakumar Director (Research & Development)

4. Shri B. V. Rama Gopal $IRECTOR2ElNERIES

About IndianOil
5. Shri Ranjan Kumar Mohapatra Director (Human Resources)

6. Shri Gurmeet Singh Director (Marketing) w.e.f. 26.07.2018

7. Shri Akshay Kumar Singh Director (Pipelines) w.e.f. 14.08.2018

8. Shri Ashutosh Jindal Government Nominee Director

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

10. Shri Parindu Bhagat Independent Director

Directors and others

11. Shri Vinoo Mathur Independent Director

12. Shri Samirendra Chatterjee Independent Director

Board of
13. Shri Chitta Ranjan Biswal Independent Director

14. Dr. Jagdish Kishwan Independent Director

15. Shri Sankar Chakraborti Independent Director

Directors’
16. Shri D. S. Shekhawat Independent Director

Report
17. Shri A.K.Sharma Director (Finance) up to 17.05.2019

Discussion & Analysis

18. Smt. Sushmita Dasgupta Government Nominee Director w.e.f. 20.03.2019
up to 27.05.2019

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

2. Shri Kamal Kumar Gwalani Company Secretary Report on Corporate

Governance
Statements
Financial
 52 Indian Oil Corporation Limited 2nd Integrated Annual Report

CORE TEAM

From Left to Right –

Dr. SSV Ramakumar, Director (Research & Development)
Mr. Ranjan Kumar Mohapatra, Director (Human Resources)
Mr. Gurmeet Singh, Director (Marketing)
Mr. Sanjiv Singh, Chairman
-R"62AMA'OPAL$IRECTOR2ElNERIES
Mr. Akshay Kumar Singh, Director (Pipelines)
Mr. G.K.Satish, Director (Planning & Business Development)
 60th Annual Report 2018-19 53

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

BS Giridhar
Executive Director (Health, Safety &
Capitals
Executive Director (LPG), Marketing
Sudhir Kumar
Suresh Chopra
%XECUTIVE$IRECTOR'UJARAT2ElNERY
Executive Director I/C (Projects),

Directors and others

Environment), Marketing
2ElNERIES CK Tiwari
YK Gupta Executive Director (IndianOil Institute of
Executive Director (Health, Safety & SS Lamba

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

Discussion & Analysis

Subimal Mondal Executive Director (Quality Control),
SK Awasthi
Marketing

Management’s
%XECUTIVE$IRECTOR/3$ 2ElNERIES Executive Director (Lubes), Marketing

Debasish Roy AK Basu

AK Tewari
%XECUTIVE$IRECTOR&INANCE 2ElNERIES Executive Director I/C (Regional Services
Executive Director (Operations),
– Eastern Region)
Pipelines

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

PK Yadav Rakesh Sehgal SK Dam

Governance

%XECUTIVE$IRECTOR'AS #ORPORATE/FlCE Executive Director (Supplies), Marketing Executive Director (Co-ordination,

Planning & Law), Marketing
Alok Khanna Deepak Agarwal
Executive Director (Strategic Information Executive Director I/C (Information SK Bose
3YSTEMS 2ElNERIES 3YSTEMS #ORPORATE/FlCE Executive Director (Human Resources),
#ORPORATE/FlCE
PC Choubey Gautam Ghosal
Statements

Executive Director (South Eastern Executive Director (Human Resources), SS John

Financial

Region Pipelines) Pipelines %XECUTIVE$IRECTOR!/$2ElNERY

 54 Indian Oil Corporation Limited 2nd Integrated Annual Report

Subodh Kumar Rabindranath Ghosh Pritish Bharat

Executive Director (Petrochemicals, Executive Director (Regional Services – Executive Director
Alternate Energy & Sustainable Eastern Region) 7EST"ENGAL3TATE/FlCE
$EVELOPMENT #ORPORATE/FlCE
DV Ramana Rao Najmi
Subrata Barma Executive Director (Retail Sales & Spl. Executive Director
Executive Director (The IndianOil Assgn.Amravati), Marketing 6IGILANCE #ORPORATE/FlCE
&OUNDATION #ORPORATE/FlCE
AK Nagpal Abhijit Choudhury
AK Ganjoo Executive Director (Internal Audit), Executive Director (Construction),
Executive Director #ORPORATE/FlCE Pipelines
5TTAR0RADESH3TATE/FlCE )
Sangeeta Munjal (Ms)
Brij Behari
Debashis Roy Executive Director (Co-ordination),
%XECUTIVE$IRECTOR(ALDIA2ElNERY 
Executive Director I/C (Exploration & #ORPORATE/FlCE
0RODUCTION #ORPORATE/FlCE Vibhash Kumar
SK Dey
%XECUTIVE$IRECTOR"IHAR3TATE/FlCE
Aarup A Bhattacharjee Executive Director (Automation),
Executive Director (Regional Services - Marketing P Jayadevan
Western Region) AK Gupta Executive Director (Tamil Nadu State
%XECUTIVE$IRECTOR0ROJECTS 2ElNERIES /FlCE
Ravindra Garg
Executive Director Sukla Mistry (Ms) Shyam Bohra
2AJASTHAN3TATE/FlCE %XECUTIVE$IRECTOR"ARAUNI2ElNERY %XECUTIVE$IRECTOR$ELHI3TATE/FlCE

TDVS Gopalakrishna Umesh Goel V Satish Kumar

%XECUTIVE$IRECTOR0ARADIP2ElNERY  Executive Director (Information Executive Director
3YSTEMS #ORPORATE/FlCE -ADHYA0RADESH3TATE/FlCE
Partha Ghosh
Executive Director (Optimisation), Manoj Bajaj Sanjeev Gupta
#ORPORATE/FlCE Executive Director (Process – Projects), Executive Director (Corporate Strategy),
2ElNERIES #ORPORATE/FlCE
Pramod Narang
Executive Director (Maintenance & Sanjaya Bhatnagar Vigyan Kumar
Construction), Pipelines %XECUTIVE$IRECTOR0ANIPAT2ElNERY Executive Director (Retail Sales),
JP Sinha Marketing
DS Nanaware
Executive Director (Southern Region Executive Director Sujoy Choudhury
Pipelines) (Eastern Region Pipelines) %XECUTIVE$IRECTOR0UNJAB3TATE/FlCE
OP Jain Archna Bhardwaj (Ms)
Kalyan Halder
Executive Director (BD-Finance), Executive Director (Maintenance &
Executive Director (Finance), Pipelines
#ORPORATE/FlCE #ONSTRUCTION 2ElNERIES
Amitabh Akhauri Dr. GS Kapur
Sanjiv Sharma
Executive Director Executive Director
Executive Director (Corporate Planning &
-AHARASHTRA3TATE/FlCE (Chemical Technology), R&D
%CONOMIC3TUDIES #ORPORATE/FlCE
Sanjay Sahay
Dr. Deepak Saxena
Executive Director (Aviation), Marketing
Executive Director (Lube Technology),
R&D Arup Sinha
DK Banerjee Executive Director
Executive Director (Western Region (Regional Services - Southern Region)
Pipelines)
Hridesh Baindail
Manish Sinha Executive Director (Exploration &
Executive Director (Explosives) 0RODUCTION #ORPORATE/FlCE
 60th Annual Report 2018-19 55

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.

network for providing assured service to customers
throughout the country.
4OCREATEASTRONGRESEARCHDEVELOPMENTBASEINRElNERY
Capitals
To have fair dealings with recognised representatives of
employees in pursuance of healthy industrial relations

Directors and others

practices and sound personnel policies.
processes, product formulations, pipeline transportation
and alternative fuels with a view to minimising/eliminating
imports and to have next generation products.
Towards community

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.

Discussion & Analysis

To maintain adequate supplies to Defence and other para-
To earn a reasonable rate of return on investment. military services during normal as well as emergency

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

To achieve higher growth through mergers, acquisitions,
INTEGRATION AND DIVERSIlCATION BY HARNESSING NEW
business opportunities in oil exploration & production,
Responsibility Report
maintain a reasonable annual dividend on equity capital.
To ensure maximum economy in expenditure.

petrochemicals, natural gas and downstream opportunities
overseas.
To inculcate strong ‘core values’ among the employees and
continuously update skill sets for full exploitation of the
new business opportunities.
Business
4OMANAGEANDOPERATEALLFACILITIESINANEFlCIENTMANNER
so as to generate adequate internal resources to meet
revenue cost and requirements for project investment, Report on Corporate
without budgetary support.
To develop long-term corporate plans to provide for adequate
Governance

To develop operational synergies with subsidiaries and joint
ventures and continuously engage across the hydrocarbon
VALUECHAINFORTHEBENElTOFSOCIETYATLARGE
growth of the Corporation’s business.
To reduce the cost of production of petroleum products by
means of systematic cost control measures and thereby
sustain market leadership through cost-competitiveness.
To complete all planned projects within the scheduled time
Statements

and approved cost.

Financial
 56 Indian Oil Corporation Limited 2nd Integrated Annual Report

MAIN OFFICES & MAJOR UNITS

2EGISTERED/FlCE -ATHURA2ElNERY South Eastern Region
IndianOil Bhavan, 0/-ATHURA2ElNERY 3rd Floor, Alok Bharti Tower,
G-9, Ali Yavar Jung Marg, Mathura - 281 005, Uttar Pradesh Saheed Nagar,
Bandra (East), Mumbai - 400 051 Panipat 2ElNERY Bhubaneshwar - 751 007, Odisha
Maharashtra 0/0ANIPAT2ElNERY
Marketing Division
Panipat - 132 140, Haryana
#ORPORATE/FlCE (EAD/FlCE
"ONGAIGAON2ElNERY
3079/3, Sadiq Nagar, IndianOil Bhavan,
P. O. Dhaligaon - 783 385
J.B. Tito Marg, G-9, Ali Yavar Jung Marg, Bandra (East),
Dist. Chirang, Assam
New Delhi - 110 049 Mumbai - 400 051, Maharashtra
0ARADIP2ElNERY
Northern Region
2ElNERIES$IVISION P.O. Jhimani, via Kujang,
IndianOil Bhavan,
(EAD/FlCE Dist. Jagatsinghpur – 754 141, Odisha
1, Aurobindo Marg, Yusuf Sarai,
SCOPE Complex, Core-2, Pipelines Division New Delhi - 110 016
7, Institutional Area, Lodhi Road, Eastern Region
(EAD/FlCE
New Delhi - 110 003 IndianOil Bhavan,
A-1, Udyog Marg, Sector-1,
"ARAUNI2ElNERY NOIDA - 201 301, Uttar Pradesh 2, Gariahat Road (South), Dhakuria,
0/"ARAUNI2ElNERY Kolkata - 700 068, West Bengal
Northern Region
Dist. Begusarai - 861 114, Bihar Western Region
0/0ANIPAT2ElNERY
$IGBOI2ElNERY Panipat - 132 140, Haryana IndianOil Bhavan – BKC
AOD, P. O. Digboi - 786 171 Plot No. C-33, ‘G’ Block
Eastern Region
Assam Bandra Kurla Complex, Bandra (E),
14, Lee Road,
'UJARAT2ElNERY Kolkata - 700 020, West Bengal Mumbai - 400 051, Maharashtra
P. O. Jawahar Nagar, Southern Region
Western Region
Dist. Vadodara - 391 320, Gujarat IndianOil Bhavan,
P. O. Box 1007,
Guwahati 2ElNERY Bedipara, Morvi Road, Gauridad, 139, Nungambakkam High Road,
P. O. Noonmati, Rajkot - 360 003, Gujarat Chennai - 600 034, Tamil Nadu
Guwahati - 781 020, Assam
Southern Region
(ALDIA2ElNERY R&D Centre
IndianOil Bhavan,
0/(ALDIA2ElNERY Sector 13,
Dist. Midnapur - 721 606, West Bengal
AUDITORS, REGISTRAR & TRANSFER AGENT, STOCK EXCHANGES, BANKERS AND DEBENTURE TRUSTEE
Statutory Auditors
V. Sankar Aiyar & Co., Mumbai
S. K. Mehta & Co., New Delhi
C. K. Prusty & Associates, Bhubaneshwar
V. Singhi & Associates, Kolkata
Branch Auditor
Shiromany Tyagi & Co., New Delhi
Cost Auditors
Chandra Wadhwa & Co., New Delhi
Bandyopadhyaya Bhaumik & Co., Kolkata
Mani & Co., Kolkata
R. J. Goel & Co., New Delhi
ABK & Associates, Mumbai
Vivekanandan Unni & Associates, Chennai
Chandra Wadhwa & Co., New Delhi is the
Central Cost Auditor
139, Nungambakkam High Road,
Faridabad - 121 007, Haryana
Chennai - 600 034, Tamil Nadu
Secretarial Auditor Debenture Trustee
Ragini Chokshi & Co. SBICAP Trustee Company Ltd.
Company Secretaries, Mumbai Apeejay House, 6th Floor,
3, Dinshaw Wachha Road,
Registrar & Transfer Agent
Churchgate, Mumbai - 400020
Karvy Fintech Private Ltd. Website: www.sbicaptrustee.com
Karvy Selenium Tower B, Plot 31-32,
Gachibowli Financial District, Stock Exchanges
Nanakramguda, BSE Ltd.
Hyderabad – 500 032 P.J. Towers, Dalal Street, Mumbai - 400001
Tel. Nos. : (040) 67162222 National Stock Exchange of India Ltd
Toll Free No. : 1800 3454 001 Exchange Plaza, 5th Floor, Plot C/1,
Fax No. : (040) 23001153 ‘G’ Block, Bandra - Kurla Complex,
E-mail Address : einward.ris@karvy.com Bandra (E), Mumbai – 400 051
7EBSITE  WWWKARVYlNTECHCOM
Bankers
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

Directors and others

Balmer Lawrie & Co. Ltd.
Delhi Aviation Fuel Facility Private Ltd. Setting up and operation of Aviation Delhi International Airport Ltd.

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.

Discussion & Analysis

Barauni Fertiliser Corporation of India Ltd.
Hindustan Fertiliser Corporation 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

IndianOil LNG Pvt. Ltd.
IndianOil Skytanking Pvt. Ltd.
Indian Synthetic Rubber Pvt. Ltd.
Business
LNG Terminal at Ennore Maximus Investment Advisory Pvt Ltd
ICICI Bank Ltd.
Aviation fuel facility projects and Skytanking GmbH, Germany Report on Corporate
into-plane services
Manufacturing of Styrene Butadiene Trimurti Holding Corporation, Taiwan
Governance

Indradhanush Gas Grid Ltd.
Rubber at Panipat
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

Name Business Partners

Kochi Salem Pipelines Private Ltd.
Lubrizol India Pvt. Ltd.
Mumbai Aviation Fuel Farm Facility
Pvt. Ltd.
NPCIL - IndianOil Nuclear Energy
Corporation Ltd.
Petronet LNG Ltd.
2ATNAGIRI2ElNERY0ETROCHEMICALS
Ltd.
Suntera Nigeria 205 Ltd.
Laying of pipeline for transport of LPG
from Kochi to Salem
Lube Additives
Setting up of common-user integrated
aviation fuel infrastructure at Mumbai
Airport
Setting up of nuclear power plant
LNG imports/distribution
2ElNERYANDPETROCHEMICALSPROJECTIN
Maharashtra
Oil exploration activities
Bharat Petroleum Corporation Ltd.
Lubrizol Corp., USA
Bharat Petroleum Corporation Ltd.
Hindustan Petroleum Corporation Ltd.
Mumbai International Airport Ltd.
Nuclear Power Corporation of India
Ltd.
Bharat Petroleum Corporation Ltd.
Oil and Natural Gas Corporation Ltd.
GAIL (India) Ltd
Bharat Petroleum Corporation Ltd.
Hindustan Petroleum Corporation Ltd.
Oil India Ltd.
Suntera Resources Ltd., Cyprus

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

What Corporation Owns

Net Fixed Assets 17,164 17,478 118,708 113,927 107,880 91,347 90,895 66,251
Capital Work In Progress (CWIP) 3,412 2,201 23,599 14,348 10,738 21,025 21,022 36,324

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

Directors and others

Total 45,384 42,873 313,873 279,449 259,209 220,048 226,607 219,849

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

Discussion & Analysis

Tax Liability (Net) 2,023 1,646 13,989 10,726 6,811 6,403 9,468 6,720

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

Key Financial Indicators Report on Corporate

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%

Debt Equity Ratio

- Total Debt To Equity 0.79:1 0.53:1 0.55:1 0.60:1 0.71:1 0.81:1
- Long-Term Debt To Equity 0.35:1 0.19:1 0.25:1 0.40:1 0.47:1 0.56:1
Current ratio 1.22:1 1.07:1 0.99:1 1.36:1 1.26:1 1.28:1
Return on Average Net Worth (%) 18.35 24.66 24.39 15.12 14.74 7.91
Return on Average Capital Employed 18.10 24.22 22.57 16.36 18.37 9.62
(%)
Debtor Turnover Ratio (times) 46.64 53.43 54.66 55.79 54.05 50.70
Inventory Turnover Ratio (times) 8.52 7.47 8.37 10.20 9.40 8.43
Interest Service Coverage Ratio (times) 8.57 12.32 9.94 6.49 6.37 3.91
Debt Service Coverage Ratio (times) 4.30 3.31 2.03 1.76 1.68 1.46
EBITDA Margin (%) 6.99 10.22 9.96 6.67 6.37 3.27
/PERATING0ROlT-ARGIN 4.97 7.74 7.07 4.64 4.34 1.28
.ET0ROlT-ARGIN 3.19 5.06 5.29 3.21 2.97 1.21

# Source: Reuters

Note: Exchange rate used:-

For 2018-19 Average Rate 1 US $ = `69.90 and Closing Rate 1 US $ = `69.16 as on 31.03.2019
For 2017-18 Average Rate 1 US $ = `64.46 and Closing Rate 1 US $ = `65.18 as on 31.03.2018

.OTE!BSOLUTElGURESIN53AND` adjusted for Bonus Shares (1:1 issued in March 2018 and 1:1 issued in October 2016)

1 Revenue From Operations
 6ALUE!DDED
3 Investments
4 Other Current Assets
5 Borrowings (Total Debt)
6 Tax Liability (Net)
7 Other Current Liabilities
8 Enterprise Value
9 Equity
Sales (net of discount) + Sale of Services + other operating revenue + net claim/
(surrender) of SSC + subsidy from Central/State Govt. + Grant from Govt.
0ROlT"EFORE4AX&INANCE#OST$EPRECIATION!MORTISATION%MPLOYEE"ENElT 
Expenses
Non-Current Investments + Current Investments
Current Assets - Current Investments - Current Tax Assets
Short-Term Borrowings + Long-Term Borrowings + Current Maturities of Long-Term Debt
Deferred Tax Liability + Current Tax Liability + Income Tax Liability - (Current Tax Asset +
Income Tax Assets)
Current Liabilities - (Short-Term Borrowings + Current Maturities of Long-Term Debt)
Market Capitalisation + Borrowings - Cash and Cash Equivalents
Equity Share Capital + Other Equity
 60th Annual Report 2018-19 61

10 Capital Employed
 %ARNINGS0ER3HARE
12 Cash Earnings Per Share
About the
Report
Equity+Borrowings – CWIP
0ROlT!FTER4AX7EIGHTED!VERAGE.UMBEROF%QUITY3HARES
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

Directors and others

2018-19 2017-18 2016-17 2015-16 2014-15
Operating Performance

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

Discussion & Analysis

Exports 5.244 7.274 4.849 3.575 3.749

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

US$ Million ` in Crore US$ Million ` in Crore

Revenue from Operations

86,684 6,05,924 78,565 5,06,428
(Inclusive of Excise Duty & Sale of Services)
EBITDA
0ROlT"EFORE%XCEPTIONAL)TEMS&INANCE#OST4AX 5,286 36,952 6,688 43,114
Depreciation & Amortisation)
Finance Cost 616 4,311 540 3,483
Depreciation 1,075 7,514 1,096 7,067
0ROlT"EFORE4AX%XCEPTIONAL)TEMS 3,595 25,127 5,052 32,564
Exceptional Items - - - -
0ROlT"EFORE4AX 3,595 25,127 5,052 32,564
Tax Provision 1,178 8,233 1,740 11,218
0ROlT!FTER4AX 2,417 16,894 3,312 21,346
Balance Brought Forward from Last Year
Less: Appropriations
Interim Dividend paid 1,112 7,775 1,397 9,005
Final Dividend paid 271 1,896 74 474
Dividend Distribution Tax 284 1,985 298 1,921
Insurance Reserve (Net) 3 18 3 20
Bond Redemption Reserve 90 631 78 503
CSR Reserve (Net) - - - (3)
General Reserve 657 4,589 1,462 9,426
Balance Carried to Next Year - - - -

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

Note: Exchange Rate used :-

For 2018-19: Average Rate 1 US$ = D69.90 and Closing Rate 1 US$ = D69.16 as on 31.03.2019
For 2017-18: Average Rate 1 US$ = D64.46 and Closing Rate 1 US$ = D65.18 as on 31.03.2018
 60th Annual Report 2018-19 63

About the
Report
PHYSICAL
Million Metric Tonnes

Chairman’s Desk
Particulars 2018-19 2017-18

2ElNERIES4HROUGHPUT 71.82 69.00

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
ECONOMICGEO
POLITICALlNANCIALINDUSTRY
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
OF SHARES
The Board of your Corporation at its meeting held on 13th December,
2018, had approved a Buyback of not exceeding 29,76,51,006
fully paid-up Equity Shares of face value of ` 10 each (“Equity
3HARESv  FROM ALL THE EXISTING SHAREHOLDERS  BENElCIAL OWNERS
of equity shares as on the Record Date (25th December, 2018),
on proportionate basis, through the “Tender Offer” process at a
price of ` 149/- per equity share, payable in cash for an aggregate
consideration not exceeding ` 4,435 crore. The offer size was 5%
of the aggregate of the fully paid-up equity share capital and free
reserves and 3.06% of the paid-up equity shares in the total paid-
UP SHARE CAPITAL OF THE #ORPORATION AS PER THE AUDITED lNANCIAL
STATEMENTSFORTHElNANCIALYEARENDEDst March, 2018.
The Buyback Offer opened on 22 January, 2019 and closed
nd
on 4th February, 2019. The settlement of Buyback amount was
completed on 12th February, 2019 and 29,76,51,006 Equity
Shares were bought back, which were cancelled and extinguished
on 14th February, 2019, thereby resulting in reduction of paid-up
share capital from ` 9,711.81 crore to ` 9,414.16 crore.
fund comprising - 11 stocks managed by Reliance Nippon
Life Asset Management Company) whereby the PoI holding
Description of
reduced to 525,01,71,827 equity shares constituting
54.06% of the paid-up equity share capital of IndianOil.
Capitals
3) In February, 2019, the PoI sold 17,78,54,068 shares
under IndianOil’s Buyback of Shares, and consequently,
Directors and others
the shareholding of PoI reduced to 5,07,23,17,759 equity
shares constituting 53.88% of the reduced paid-up equity
share capital of IndianOil .
Board of
4) In February, 2019, the PoI disinvested 3,72,03,876 equity
shares in favour of Bharat 22 ETF whereby the PoI holding
further reduced to 503,51,13,883 equity shares constituting
53.48% of the paid-up equity share capital of IndianOil.
5) In March, 2019, the PoI further disinvested 12,29,64,424
Directors’
Report
equity shares in favour of CPSE ETF, whereby the PoI holding
reduced to 491,21,49,459 equity shares constituting
52.18% of the paid-up equity share capital of IndianOil.
Discussion & Analysis
Management’s
DIVIDEND
The Board of Directors of your Corporation has recommended
DISINVESTMENT BY THE PRESIDENT OF
INDIA (PROMOTER)
The promoter of IndianOil, i.e., President of India (PoI), was
holding 553,34,36,444 equity shares constituting 56.98% of the
A lNAL DIVIDEND OF  IE ` 1/- per equity share of
` 10/- each, on the paid-up share capital in addition to the interim
Responsibility Report
dividends totalling to ` 8.25 per share paid during 2018-19.
This is the 52nd consecutive year for which your Corporation has
recommended payment of dividend. So far, your Corporation has
Business
paid a cumulative dividend of ` CROREEXCLUDINGTHElNAL
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:-
1) In June, 2018, the PoI disinvested 2,18,90,396 equity
shares in favour of Bharat 22 ETF (an exchange-traded fund
comprising - 22 stocks managed by ICICI Prudential Mutual
Fund) whereby the PoI holding reduced to 551,15,46,048
equity shares constituting 56.75% of the paid-up equity
share capital of IndianOil.
2) In December, 2018, the PoI further disinvested 26,13,74,221
equity shares in favour of CPSE ETF (an exchange-traded
on 28th !UGUST   4HE lNAL DIVIDEND SHALL BE PAID TO THE
members whose names appear in the Register of Members as well
Governance
ASTHE"ENElCIAL/WNERSHIP0OSITIONPROVIDEDBY.3$,#$3,AS
at the close of 22nd August 2019.
The Board of your Corporation has formulated a Dividend
Distribution Policy and the dividends declared/recommended
during the year are in accordance with the said policy. The Policy
Statements
is annexed to the Directors’ Report at Annexure-I and is also
Financial
hosted on the website of the Company, i.e., www.iocl.com
 IndianOil
Group Refineries and
Pipelines Network
Una
Jalandhar

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

Ajmer Sanganer Kanpur Lucknow AFS Baitalpur Dimapur

Guwahati
R
aw la

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

Bengaluru AFS Chennai AFS Ennore

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
to the Government exchequer in the form of duties, taxes and
dividend. During the year, `1,93,422 crore was paid to the
exchequer as against `1,90,670 crore paid in the previous year.
An amount of `1,01,395 crore was paid to the Central Exchequer
and `92,027 crore to the State Exchequer as against `1,03,362
crore and `87,308 crore paid in the previous year respectively.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the provisions of the Companies Act,
2013 and the Accounting Standards issued by the Institute of
Chartered Accountants of India, your Corporation has prepared
the Consolidated Financial Statement for the group, including its
subsidiaries, joint venture entities and associates. The highlights
of the Consolidated Financial Results are as follows:
Particulars 2018-19 2017-18
)NORDERTOMEETTHECRUDEOILREQUIREMENTOFITSRElNERIESYOUR
Corporation imported 61.69 million metric tonnes of crude oil
Chairman’s Desk
during the year, as against 58.01 million metric tonnes in the
PREVIOUSYEAR4HESELECTIONOFCRUDEOILISDONEFROMADIVERSIlED
From the
mix of supply sources. The import of petroleum products during
the year was 7.00 million metric tonnes as against 6.53 million
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
oil, including term contracts for US origin crudes, to maintain
UNINTERRUPTED OPERATIONS AT ITS RElNERIES AND TO OVERCOME THE
crude oil supply concerns due to imposition of sanctions on trade
with Iran.
OPERATIONAL PERFORMANCE
Description of
Capitals
Refineries
US$ ` US$ ` $URINGTHEYEARTHENINERElNERIESOFYOUR#ORPORATIONPERFORMED

Directors and others

Million in Crore Million in Crore exceedingly well in physical parameters to achieve the highest ever
crude oil throughput of 71.82 million metric tonnes as against
Revenue from 69.00 million metric tonnes in 2017-18. A capacity utilisation of
Operations

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 )NORDERTOACHIEVEMOREmEXIBILITYINRElNINGOPERATIONSNINENEW

Discussion & Analysis

crude oil grades were included in IndianOil’s crude oil basket,
0ROlTFORTHE'ROUP 2,486 17,377 3,442 22,189 TAKING THEIR NUMBER TO  4HE RElNERIES ARE WELL POISED TO

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
Pipelines
Your Corporation has an extensive network of pipelines across
the length and breadth of the country for supply of crude oil and
products. As on 31.03.2019, the total length of the pipelines
was 14,231 km with capacity of 94.16 million tonnes of crude /
product pipelines and 21.69 MMSCMD of gas pipelines.
The pipelines of your Corporation achieved the highest ever
2nd Integrated Annual Report
SERVO, the leading lubricant brand of your Corporation, registered
AGROWTHOFPERCENTINOVERALLlNISHEDLUBRICANTSANDPER
cent in retail lubricants to achieve the top position in retail lube
market. 123 SERVO grade approvals were obtained from Original
Equipment Manufacturers (OEMs) during the year.
The Aviation Service of the Corporation continued to maintain its
leadership position with a market share of 60 per cent. With the
commissioning of nine new Aviation Fuel Stations (AFS), your
THROUGHPUTFORTHElFTHCONSECUTIVEYEARREGISTERINGATHROUGHPUT Corporation now has 116 AFS in the country.
of 88.53 million tonnes as against 85.68 million tonnes in
the previous year, registering a growth of 3.3%. The crude oil Explosives & Cryogenics
pipelines achieved a throughput of 51.33 million metric tonnes as
During the year, the Explosives and Cryogenics businesses of your
against 51.08 million metric tonnes during the previous year. The
Corporation continued with excellent performance and recorded
petroleum product pipelines recorded the highest ever throughput
the highest ever production and sales of explosives and cryocans.
of 37.20 million metric tonnes as against 34.60 million metric
The Explosives group manufactured and sold 1,83,194 metric
tonnes achieved last year, registering a growth of 7.50 per cent.
tonnes of explosives during the year, recording a growth of 3.6
The gas pipelines also achieved the highest ever throughput of
per cent over the previous year’s volume of 1,76,757 metric
1,834 MMSCM during the year, as against a throughput of 1,683
tonnes. The Cryogenics group sold 29,555 units of cryocans and
MMSCM in 2017-18.
cryovessels during 2018-19, as against previous year’s sale of
28,782 units. During the year, the Cryogenics group developed
Marketing NEWEQUIPMENTFORAVIATIONLUBRICANTSANDRElNERIESSEGMENTSOF
Your Corporation continued to match the pace of growth in the the Corporation.
country and maintained the top place in terms of market share
and achieved the highest sales of 79.96 million metric tonnes
of petroleum products during the year, as against 77.13 million
metric tonnes during the previous year.
During the year, the Corporation commissioned 648 retail outlets
(fuel stations, including 335 Kisan Seva Kendra outlets in rural
areas) taking their total number to 27,702. All the retails outlets
of the Corporation have been automated as on 31st March, 2019.
During the year, 5,033 retail outlets were solarised, which is the
highest number of retail outlets solarised in a year. Cumulatively,
14,173 retail outlets have been solarised with an installed capacity
of about 77 MW. A new initiative, fuel@doorstep was launched
during the year to ensure door-to-door delivery of products to
SPECIlC CATEGORIES OF INSTITUTIONAL CUSTOMERS 4HE #ORPORATION
continued to meet the fuel requirement of defence and railways
during the year. In order to ensure uninterrupted availability of
petroleum products in Leh & Ladakh during winter season, when
the region gets isolated from rest of the country, the Corporation
successfully completed Advance Winter Stocking exercise much
before the closure of roads. The Corporation also maintained
uninterrupted supply line of petroleum products, including ATF
AND,0'INTHE3TATEOF+ERALADURINGmOODS
During the year, the Corporation released the highest new
domestic LPG connections to more than 2 crore customers, out of
which 1.68 crore connections were released under 0RADHAN-ANTRI
5JJWALA 9OJANA, to the women of poor households. To meet the
increased demand of LPG, the bottling capacity as well as storage
capacity was augmented by 360 TMTPA and 7800 MT respectively
and the highest number of 1,782 new LPG distributorships were
commissioned during the year.
)NDIAN/ILTHEINDUSTRYLEADERINRETAILSALESCATERSTONEARLYHALFOF
)NDIASPETROLEUMCONSUMPTION
 60th Annual Report 2018-19 67

Research & Development
The R&D Centre of your Corporation plays a key role in supporting
the business interests of the Corporation by developing
About the
Report
In its bid to provide clean air technologies, the R&D Centre
developed and patented the compact reforming process for
producing Hydrogen-CNG (H-CNG) blends for use in internal-
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
RElNINGTHE#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!PRILWITHACTIVEPATENTSINITSPORTFOLIO
SERVICE SUPPORT MODULE ! lVE TONNES PER DAY BIO METHANATION

Directors and others

plant based on this technology was commissioned in March, 2018
at Faridabad.

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

Discussion & Analysis

well as international markets whenever required. During the year, the Corporation
spent over `24,500 crore on capital projects at standalone level. In addition,

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

IndianOil plans to invest about `LAKHCROREINTHENEXT YEARSTOEVOLVEINTOAFUTURE READYCORPORATETHATPROVIDESCOMPREHENSIVEENERGYSOLUTIONSTO

DIVERSEUSERGROUPS

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,

Directors and others

which are becoming key sources of
innovation, strength and growth.

Board of
)NDIAN/ILISAMAJORSUPPLIERTOTHEKEYPLAYERSINTHEDETERGENTINDUSTRYBOTHNATIONALANDINTERNATIONAL

Petrochemicals During the year, the Corporation imported 20 cargoes (1.32

MMT) of LNG, against 17 cargoes (1.13 MMT) in the previous

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

Discussion & Analysis

11.4 per cent. The Corporation’s offerings include Polymers,
#HENNAIRECENTLYTHROUGHAJOINTVENTUREWHICHISTHElRSTOFITS
,INEAR !LKYL "ENZENE 0URIlED 4EREPHTHALIC !CID 'LYCOLS AND
Butadiene. The Corporation’s 02/0%, brand is a leading brand in
the Indian petrochemicals market.
During the year, the Corporation received approvals for its various
polymer grades from about 20 major Indian and international
OEMs. With focus on developing import substitution grades,
three new polymer grades were rolled out during the year and 50
developmental projects were taken up with customers and OEMs.
Natural Gas
4HE #ORPORATION IS MAKING SIGNIlCANT INVESTMENTS ACROSS THE
Natural Gas value chain to build infrastructure and to enhance
availability of the green fuel in the country. The Corporation now
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.
In addition, 2.10 MMT of R-LNG was internally consumed in three
kind on the East coast of India.
Management’s
The Corporation is operating / implementing City Gas Distribution
(CGD) Networks in 11 Geographical Areas (GAs) through its two
Joint Venture Companies, Green Gas Ltd. (GGL) in Lucknow & Agra
Responsibility Report
GAs and IndianOil-Adani Gas Pvt. Ltd. (IOAGPL) in Allahabad,
Chandigarh, Panipat, Daman, Ernakulam, Udham Singh Nagar,
Dharwad, South Goa & Bulandshahar GAs. The Corporation also
Business
participated in the 9th & 10th rounds of CGD Bidding invited by the
Petroleum & Natural Gas Regulatory Board (PNGRB) and received
authorisation for developing CGD Networks in 17 GAs on its own
and in 12 GAs through its JV Companies, GGL & IOAGPL. Report on Corporate
Pipeline infrastructure is critical to the development of natural
Governance
several cross-country gas pipelines independently and through JV
companies.
OFTHE#ORPORATIONSRElNERIESVIZ0ANIPAT-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

Production (E&P) activities through Participating Interest (PI), joint

Financial

TMT of LNG through trucks, registering a growth of 30.5% over

ventures and wholly-owned subsidiaries. The upstream portfolio
the previous year.
 70 Indian Oil Corporation Limited 2nd Integrated Annual Report

of the Corporation consists of 10 domestic blocks including 4 Under the Government of India’s ‘SATAT’ (Sustainable Alternative
DISCOVEREDSMALLlELDS$3& COALBEDMETHANEBLOCKSAND
12 overseas blocks, with Participating Interest (PI) ranging from
3 per cent to 100 per cent. The overseas E&P portfolio of the
Corporation is spread over 10 countries, viz., Canada, Gabon,
Israel, Libya, Nigeria, Oman, Russia, UAE, USA & Venezuela.
During the year, the Corporation’s share of production from
upstream assets increased by 65 per cent compared to the
previous year, registering an increase in volume from 2.66 MMT
to 4.39 MMT. The Corporation’s 2P reserves increased by 45 per
cent during 2018-19 over 2017-18 (from 743 MMboe to 1,079
MMboe).
During the year, the Corporation, along with Bharat Petro Resources
Ltd. was jointly awarded Block Onshore 1 in U.A.E., offered during
the Abu Dhabi Licencing Round 2018. The Corporation alongwith
its consortium partners was also awarded the licence for Block
32 in Israel by the Government of Israel. Another consortium of
IndianOil (with 90 per cent PI – as lead operator) and Hindustan
Towards Affordable Transportation) initiative, 5,000 Compressed
Bio-Gas (CBG) plants are to be set up by the year 2023, with
production capacity of 15 MMTPA of CBG, which is 34 per cent of
India’s natural gas consumption during 2017-18. The Corporation
has issued Letters of Intent to entrepreneurs for setting up 75
CBG plants. The technology for these plants shall be facilitated
by IndianOil and their expected capacity is 792 tonnes per day.
The Corporation is setting up a second generation ethanol plant
at Panipat based on ligno-cellulosic conversion of agricultural
residue. Similar plants are also planned at Gorakhpur (Uttar
Pradesh) and Dahej (Gujarat).
Sustainable Development
In view of the recent developments on climate change and
sustainable development goals, there is an increased thrust on
sustainable development. Your Corporation has taken cognizance
of the fact and has been pursuing carbon management through
Oil Exploration Ltd. (with 10 per cent PI) emerged the winner in the
Umatara Cluster in Assam under the DSF Bid Round II.
The Corporation acquired 17 per cent PI in Mukhaizna Oil
Field, Oman, through acquisition of 100% share capital of Shell
Exploration & Production Oman Ltd. from Shell Overseas Holding
Ltd. The transaction marked the entry of the Corporation into the
ENERGYCONSERVATIONENERGYEFlCIENCYRENEWABLEENERGYCARBON
sequestration; water management through reducing consumption,
recycling & rain-water harvesting; and waste management through
reduce, reuse & recycle initiatives.
The Corporation is replacing conventional lighting with LED lights
across all its installations. Cumulatively, 4.5 lakh conventional
highly prospective Middle East region and is also consistent with
the strategic objective of adding high quality producing assets to
its upstream portfolio.
The Corporation is targeting to raise equity oil & gas production
from its international and domestic acquisitions to 7 MMTPA
by the year 2023-24 and further to 11 MMTPA by 2029-30 by
suitable addition of new assets from time to time.
LIGHTlTTINGSHAVEBEENREPLACEDWITH,%$$URINGTHEYEAR
lakh saplings were planted at various locations of the Corporation.
Waste paper recycling is another major initiative of the Corporation
and during the year 137 tonnes of waste paper was recycled
through designated recyclers. The Corporation has installed 608
rainwater harvesting systems to harvest 3 billion litres of rainwater
annually.

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/
$URINGTHEYEARTHElRSTLEGOFSERVICEMANAGEMENTOFCUSTOMER 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
ONTOTHEPLATFORMRESULTINGINSIGNIlCANTIMPROVEMENTINSINGLE 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 TOITSEMPLOYEESTOTAKECAREOFTHEIRHEALTHEFlCIENCYECONOMIC
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.

Directors and others

Your Corporation believes that holistic and meaningful employee
HEALTH, SAFETY & ENVIRONMENT (HSE) engagement and their right development will enhance employees’

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 -
LIFEOFITSEMPLOYEESCUSTOMERSANDTHECOMMUNITY!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

Discussion & Analysis

OFTHE#ORPORATIONAREALSO)3/ CERTIlED#OMPLIANCEWITH has been introduced, with an objective to provide continuous
safety systems & procedures and environmental laws is monitored functional inputs.

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
locations and various training programmes were conducted across
the Corporation covering safety-related topics.
HUMAN RESOURCES
Your Corporation has a strong and dedicated workforce of 33,498,
consisting of 17,704 executives and 15,794 non-executives as on
31st March 2019, including 2,869 women employees comprising
8.56 per cent of the total workforce.
Your Corporation scrupulously follows the Presidential Directives
and Guidelines issued by the Government of India regarding
reservation in services for SC/ST/OBC/PWD (Persons with
Disabilities)/ Ex-servicemen to promote inclusive growth. Rosters
are maintained as per the directives and are regularly inspected
BYTHE,IAISON/FlCERS OFTHE#ORPORATIONASWELLASTHE,IAISON
/FlCEROFTHE'OVERNMENTOF)NDIATOENSUREPROPERCOMPLIANCE
Grievance/Complaint Registers are also maintained at Division/
Region/Unit level for registering grievances from OBC/SC/
A policy has been framed to sponsor the talent to executive
management programmes at select management schools,
Responsibility Report
namely IIMs – Ahmedabad, Bangalore, Calcutta, Lucknow and
MDI-Gurugram after they secure admission through the rigorous
selection process of these institutes.
Business
Expanding horizons of Industry-Academia
Partnership Report on Corporate
With focus on strengthening ‘Industry-Academia’ partnership,
IndianOil collaborated with the Institute of Chemical Technology
Governance
(ICT) Mumbai to set up the ICT-IOC Campus at Bhubaneswar.
Admission process for the 5-year integrated M. Tech Programme,
through JEE-Main examination has been completed for a batch
size of 60 students, which saw an overwhelming response from
students.
Statements
A unique ‘one-of-its-kind’ Executive M. Tech. Programme for
Financial
working professionals has been developed jointly by ICT and IIT
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.

Women Leadership Development

A ‘one-of-its-kind’ initiative which aims at long-term all-round
development of a select group of women leaders at the middle
management level was conceptualised and introduced. The
purpose of this unique endeavour was to facilitate enhancement
OF LEADERSHIP CAPACITY OF THE PARTICIPATING WOMEN OFlCERS BY
DEVELOPINGGREATERSELF CONlDENCEDIRECTINGTHEIRPASSIONTOGROW
and contribute to the organisation, understanding how other women
leaders across varied industries have coped with their professional
careers (role models), building a support/network group amongst
women leaders, becoming more effective at the workplace, and
"YIMBIBINGANDPROMOTINGDIVERSITYINCLUSIVENESSINWORKPLACE developing an action plan for performance excellence and goal
)NDIAN/ILSTRIVESTOCREATERICHERANDMOREPRODUCTIVEWORKENVIRONMENTS achievement.
WHEREEACHEMPLOYEEWORKSTOFULLYMAXIMISEHISORHERPOTENTIAL

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
Model (PCMM) on three inter-related components in HR – People,
Process and Technology.
The assessment has been done with a view to benchmark
PROVISIONS OF /FlCIAL ,ANGUAGE !CT  AND 2ULES NOTIlED
thereunder are complied with. Communications received in Hindi
and any application, appeal or representation written or signed
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

RIGHT TO INFORMATION ACT
Your Corporation has put in place an elaborate mechanism across
About the
Report
There were three complaints of sexual harassment pending as on
1st April 2018. During the year 2018-19, six complaints were
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

The Corporation has aligned with the online RTI portal launched by
DoPT and all the applications/appeals received through the portal
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
About IndianOil
the Corporation are made aware of the provisions of the Act and the
measures adopted by the Corporation to prevent such incidents.
CORPORATE SOCIAL RESPONSIBILITY
TIMELIMIT!TOTALOFREQUESTSANDlRSTAPPEALSWERE
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.

Directors and others

and employment-enhancing vocational skills, empowerment of
women and socially/economically backward groups, etc. During
COMPLIANCE WITH THE SEXUAL the year, the Corporation spent the entire budget of `490.60

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

Discussion & Analysis

workplace and for redressal of complaints. Internal Complaints VIGILANCE

Management’s
#OMMITTEES HAVE BEEN SET UP AT 5NIT2EGION(EAD /FlCE LEVEL
headed by senior level women executives to deal with sexual
harassment complaints, if any, and to conduct enquiries.
The objective of the vigilance function is to ensure maintenance
of the highest level of integrity throughout the Corporation. The
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
!PPEAL2ULESAND#ERTIlED3TANDING/RDERSARETAKENBYTHE
Corporation for irregularities/lapses. The number of disciplinary Report on Corporate

matters related to vigilance cases disposed off during the year

2018-19 was 48. The number of such cases pending at the end
Governance

of year was 46. The aforesaid cases pertain to irregularities such

as indiscipline, dishonesty, negligence in performance of duty or
neglect of work, etc. The Corporation continuously and regularly
endeavours to ensure fair and transparent transactions through
technology interventions and system/process review in consultation
/FF GRIDSOLARPOWERPLANTAT)NDIAN/ILS0ANIPAT2ElNERYSTANDSASA with Central Vigilance Commission and internal vigilance set-up.
Statements
Financial

TESTIMONYTO#ORPORATIONSCOMMITMENTTOENERGYTRANSITIONWITHANAIMTO
INCREASEITSRENEWABLEENERGYCAPACITYTO-7BY
 74 Indian Oil Corporation Limited 2nd Integrated Annual Report

PUBLIC DEPOSIT SCHEME RISK MANAGEMENT

The Public Deposit Scheme of the Corporation was closed with Your Corporation considers risk management as a key element of
effect from 31st August 2009. The Corporation has not invited its business operations and has put in place effective systems
any deposits from the public during the year and no deposits to identify, analyse, monitor and mitigate risks to ensure the
are outstanding as on 31st March 2018 except the old cases ORGANISATIONS SUSTAINED GROWTH AND PROlTABILITY !CCORDINGLY
amounting to `55,000/-, which remain unpaid due to unsettled the Corporation has re-visited and revised its ‘Enterprise Risk
legal / court cases. Management Policy’ during 2018-19. The Corporation’s Enterprise
CORPORATE GOVERNANCE
9OUR #ORPORATION RECEIVED THE PRESTIGIOUS h#ERTIlCATE OF
Recognition” for adopting and promoting exemplary Corporate
Governance practices for 2017-18 from The Institute of Company
Secretaries of India at the 18th ICSI National Award for Excellence
in Corporate Governance.
The Corporate Governance Report highlighting the endeavours
of your Corporation in ensuring transparency, integrity and
accountability in its functioning has been incorporated as a
separate section, forming a part of the Annual Report.
MANAGEMENT’S DISCUSSION & ANALYSIS
REPORT
The Management’s Discussion & Analysis (MDA) Report, as required
2ISK -ANAGEMENT INVOLVES RISK IDENTIlCATION ASSESSMENT AND
categorisation (based on risk appetite) and is reviewed regularly
by risk-owners to optimise risks with appropriate mitigation
plan. A Risk Management Compliance Board comprising senior
MANAGEMENTPERSONNELANDHEADEDBY#HIEF2ISK/FlCERREVIEWS
the various risks associated with the Corporation’s business.
The Corporation has constituted a Risk Management Committee
comprising whole-time Directors, which oversees risk management
activities. A report is, thereafter, put up to the Audit Committee
and the Board.
INTERNAL FINANCIAL CONTROLS
9OUR #ORPORATION HAS PUT IN PLACE ADEQUATE INTERNAL lNANCIAL
CONTROLS FOR ENSURING THE EFlCIENT CONDUCT OF ITS BUSINESS IN
adherence with laid-down policies; the safeguarding of its
assets; the prevention and detection of frauds and errors; the
accuracy and completeness of the accounting records; and
under Corporate Governance guidelines, has also been incorporated
as a separate section forming a part of the Annual Report.
BUSINESS RESPONSIBILITY REPORT
The Business Responsibility Report covering initiatives taken
with environmental, social and governance perspective has been
prepared in accordance with the directives of SEBI and forms a
part of the Annual Report.
AUDIT COMMITTEE
The Audit Committee of your Corporation comprises three members,
all of whom are Independent Directors. The recommendations
made by the Audit Committee during the year were accepted
by the Board. The other details of the Audit Committee, like its
composition, terms of reference, meetings held, etc., are provided

in the Corporate Governance Report.
The details of other Board Committees, their composition,
meetings etc. are provided in the Corporate Governance Report.
CODE OF CONDUCT
The Board of your Corporation has enunciated a Code of Conduct
for the Directors and Senior Management Personnel, which has
been circulated to all concerned and has also been hosted on
the Corporation’s website. The Directors and Senior Management
0ERSONNELHAVEAFlRMEDCOMPLIANCEWITHTHECODEOFCONDUCTFOR
THElNANCIALYEAR
 Cost Auditors for conducting the audit of the cost records
THE TIMELY PREPARATION OF RELIABLE lNANCIAL INFORMATION WHICH
is commensurate with the operations of the Corporation. The
Corporation also has a separate Internal Audit department headed
by an Executive Director, who directly reports to the Chairman.
4HE)NTERNAL!UDITDEPARTMENTHASAMIXOFOFlCIALSFROMlNANCE
and technical functions, who carry out extensive audit throughout
the year. The statutory auditors are also required to issue the
Independent Auditor’s Report on the Internal Financial Controls
OVERlNANCIALREPORTINGOFTHE#ORPORATIONUNDER#LAUSEI OF3UB
Section 3 of Section 143 of the Companies Act 2013. The report
issued thereupon has been attached alongwith the Standalone and
Consolidated Financial Statements respectively.
REMUNERATION TO THE AUDITORS
4HE /FlCE OF THE #OMPTROLLER  !UDITOR 'ENERAL OF )NDIA HAD
APPOINTEDTHE3TATUTORY!UDITORSFORTHElNANCIALYEAR
4HE!UDITORSREMUNERATIONFORTHEYEARWASlXEDAT`200 lakhs
plus applicable taxes for Statutory Audit. In addition, reasonable
out-of-pocket expenses incurred are also reimbursed at actuals.
The total amount paid to the Statutory Auditors for all services
rendered by them to the Company during 2018-19 was `434
lakhs.
COST AUDIT REPORT
Your Corporation maintains cost records as required under the
provisions of the Companies Act. The Corporation had appointed
MAINTAINEDBYRElNERIESLUBEBLENDINGPLANTSANDOTHERUNITSFOR
 60th Annual Report 2018-19 75

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%

Directors and others

period 26.07.2018 to 31.03.2019 and with regard to appointment
of Woman Director on its Board for the period 06.07.2018 to MSEs out of 25%)
25.07.2018 and 12.03.2019 to 19.03.2019. In this regard, it is

CLARIlEDTHATTHE#ORPORATIONBEINGA'OVERNMENT#OMPANYUNDER
TARGETS WAS DUE
the administrative control of the Ministry of Petroleum & Natural
Gas, the selection and appointment of Directors, (including
Independent Directors and Woman Director) vests with the
Government of India as per the Government guidelines.
Board of
4HE DElCIT OF  AND  UNDER THE SUB
to non-availability of vendors in the sub-category; however, the
target was achieved by procurement from other micro and small
enterprises in line with the policy.
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 &

Discussion & Analysis

INSTANCE OF FRAUD COMMITTED BY THE OFlCERSEMPLOYEES OF THE
Corporation.
ASSOCIATES

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)NDIATOAVERTICALLYINTEGRATEDTRANSNATIONAL
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

RELATED PARTY TRANSACTIONS (RPTs) BOARD OF DIRECTORS & KEY

In line with the provisions of the Companies Act, 2013 & SEBI MANAGERIAL PERSONNEL
guidelines, a policy on material RPTs has been framed, which
The following changes occurred in the Board / Key Managerial
can be accessed on the link https://www.iocl.com/InvestorCenter/
Personnel of the Corporation:-
Policy_on_related_party_transactions.pdf. Your Corporation has
undertaken transactions with related parties during the year in the Appointment
ordinary course of business. In line with the RPT Policy, approval
1. Shri Gurmeet Singh was appointed as Director(Marketing)
of the Audit Committee & Board, as the case may be, was obtained
w.e.f. 26.07.2018
for such RPTs. As per the threshold mentioned in the policy, there
was no material RPT during the year. The disclosures related to 2. Smt.Indrani Kaushal was appointed as Government
RPTs in accordance with applicable accounting standards are Director w.e.f. 26.07.2018 and ceased to be Director w.e.f.
12.03.2019 consequent upon change of nomination by the
provided at Note-37 of the Standalone Financial Statement.
Govt. of India. She was re-appointed as Government Director
The details of contracts or arrangements with related parties w.e.f. 28.05.2019.
referred to under Section 188 (1) of the Companies Act, 2013 3. Shri Akshay Kumar Singh was appointed as Director(Pipelines)
in the prescribed Form AOC-2 are attached at Annexure-V of the w.e.f. 14.08.2018.
report.
4. Smt. Sushmita Dasgupta was appointed as Government
Director w.e.f. 20.03.2019.
ENERGY CONSERVATION, TECHNOLOGY 5. Shri Parindu K. Bhagat, whose term as Independent Director
ABSORPTION AND FOREIGN EXCHANGE ended on 01.12.2018, was re-appointed as Independent
Director for another term of one year w.e.f. 02.12.2018
EARNINGS & OUTGO based on letter received from MoP&NG.
Your Corporation recognises energy conservation as one of the 6. Shri Sandeep Kumar Gupta was appointed as Chief Financial
most important parameter amongst various operating parameters /FlCERWEF
ANDACCORDSHIGHIMPORTANCETOTHESAMEATALLITSRElNERIESAND
operating units. The performance of units under the parameter is Cessation
monitored on a continuous basis and efforts are made to further 7. Shri Sanjay Kapoor ceased to be Independent Director w.e.f.
enhance by incorporating the latest technologies and global best 02.12.2018 consequent upon completion of his term.
practices. As a result of various energy conservation measures 8. Shri A.K.Sharma ceased to be Director(Finance) w.e.f.
undertaken during the year, the energy performance parameter 01.02.2019 consequent upon his superannuation. Based on
(indexed to the complexity of operations) in terms of MBN* directive from MoP&NG, Shri A.K.Sharma was re-appointed as
OF THE RElNERIES WAS  WHICH IS THE BEST EVER ACHIEVED AS Director(Finance) w.e.f. 18.02.2019 for a period of 3 months
against 72.6 in the previous year. Under pipeline operations, and has ceased to be Director(Finance) w.e.f. 18.05.2019.
various initiatives were taken during 2018-19, which resulted in
9. Smt. Sushmita Dasgupta, Government Director ceased to be
IMPROVEMENTOF3PECIlC%NERGY#ONSUMPTIONOF0IPELINESBY
Director w.e.f. 28.05.2019.
per cent.
4HE #ORPORATION HAS RECEIVED THE #ERTIlCATE OF )NDEPENDENCE
In accordance with the provisions of the Companies Act, 2013 FROMALLTHE)NDEPENDENT$IRECTORSCONlRMINGTHATTHEYMEETTHE
AND rules
and RULES notified
NOTIlED thereunder,
THEREUNDER the
THE details
DETAILS relating
RELATING to
TO Energy
%NERGY criteria prescribed for Independent Directors under the provisions
Conservation, Technology Absorption and Foreign Exchange of the Companies Act, 2013 and SEBI (Listing Obligations and
earnings and outgo are annexed at Annexure-VI to the report. Disclosure Requirements) Regulations, 2015 (SEBI LODR).
*MBN–(MBTU/BBL/NRGF) is calculated as Thousand British A separate meeting of Independent Directors was held during
Thermal Units per Barrel per Energy Factor. the year as per provisions of the Companies Act, 2013 and
SEBI LODR.
PARTICULARS OF EMPLOYEES Dr. S.S.V.Ramakumar, Director (R&D) and Shri Ranjan Kumar
The provisions of Section 197 of the Companies Act, 2013 and Mohapatra, Director (Human Resource), are liable to retire by
RULES NOTIlED THEREUNDER REGARDING PARTICULARS OF EMPLOYEES rotation and being eligible are proposed to be re-appointed at the
DRAWINGREMUNERATIONINEXCESSOFLIMITSSPECIlEDAREEXEMPTFOR forthcoming Annual General Meeting.
Government Companies.

! 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
the AGM.
BOARD MEETINGS
During the year, 12 meetings of the Board of Directors were held.
The details of the meetings attended by each Director are provided
in the Corporate Governance Report and hence not repeated to
avoid duplication.
PERFORMANCE EVALUATION OF BOARD,
ITS COMMITTEES AND INDIVIDUAL
DIRECTORS
The provisions of Section 134(3)(p) of the Companies Act, 2013
require a listed entity to include a statement indicating the manner
of formal evaluation of performance of the Board, its Committees
and of individual Directors. However, the said provisions are
exempt for Government Companies as the performance evaluation
of Directors is carried out by the Administrative Ministry i.e.
Ministry of Petroleum and Natural Gas (MoP&NG) as per laid down
evaluation methodology.
POLICY FOR SELECTION AND
APPOINTMENT OF DIRECTORS AND THEIR
REMUNERATION
The provisions of Section 134(3)(e) of the Companies Act, 2013
regarding the policy on Directors appointment and remuneration
60th Annual Report 2018-19 77
About the
Report
ASTHECASEMAYBE4HEPOLICYPROVIDESTHATTHECONlDENTIALITYOF
as the case may be. The policy provides that the confidentiality of
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
Whistle Blower Policy was amended to enable employees to report
From the
leakage / misuse of Unpublished Price Sensitive Information in
violation of IndianOil’s Insider Trading Code. The policy on Vigil
Mechanism/Whistle-Blower can be accessed on the Corporation’s
website at the link https://www.iocl.com/InvestorCenter/Whistle_
About IndianOil
Blower_policy.pdf
DETAILS OF LOANS / INVESTMENTS /
GUARANTEES
Your Corporation has provided loans/guarantees to its subsidiaries,
Description of
joint ventures & associates and has made investments during the
Capitals
year in compliance with the provisions of the Companies Act, 2013
AND RULES NOTIlED THEREUNDER 4HE DETAILS OF SUCH INVESTMENTS
made and loans/guarantees provided as on 31st March 2019 are
Directors and others
provided in the Standalone Financial Statement under Notes 4,
5, 36 and 42.
Board of
EXTRACT OF ANNUAL RETURN
As required under the provisions of the Companies Act, 2013, the
extract of Annual Return for the financial year ended 31stst March
EXTRACTOF!NNUAL2ETURNFORTHElNANCIALYEARENDED
2019 in the prescribed form MGT-9 has been prepared and hosted
on the website of the Corporation www.iocl.com.
Directors’
Report
COMPLIANCE WITH SECRETARIAL
INCLUDING CRITERIA FOR DETERMINING QUALIlCATIONS POSITIVE

Discussion & Analysis

attributes, independence of a Director and other matters provided STANDARDS

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).

PASSED BY THE REGULATORS OR COURTS CREDIT RATING OF SECURITIES

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

The details of unpaid/unclaimed dividend and shares transferred

VIGIL MECHANISM / WHISTLE-BLOWER
POLICY
The Corporation has framed a whistle-blower policy wherein the
employees are free to report any improper activity resulting in
violation of laws, rules, regulations or code of conduct by any of the
to the IEPF in compliance with the provisions of the Companies
Act, 2013 has been provided in the Corporate Governance Report.
MATERIAL CHANGES AFFECTING THE
Statements

COMPANY
Financial

employees, to the Competent Authority or Chairman of the Audit

Committee, as the case may be. Any complaint received is reviewed There have been no material changes and commitments affecting
 78 Indian Oil Corporation Limited 2nd Integrated Annual Report

THElNANCIALPOSITIONOFTHE#ORPORATIONBETWEENTHEENDOFTHE lNANCIALYEARANDOFTHEPROlTANDLOSSOFTHECOMPANYFOR
lNANCIALYEARANDDATEOFTHISREPORT4HEREHASBEENNOCHANGE that period;
in the nature of business of the Corporation.
C  THE $IRECTORS HAD TAKEN PROPER AND SUFlCIENT CARE FOR THE
maintenance of adequate accounting records in accordance
DIRECTORS’ RESPONSIBILITY STATEMENT with the provisions of the Companies Act, 2013 for
Pursuant to the requirement under clause (c) of sub-section (3) of safeguarding the assets of the company and for preventing
Sec 134 of the Companies Act, 2013 with respect to the Directors’ and detecting fraud and other irregularities;
2ESPONSIBILITY3TATEMENTITISHEREBYCONlRMEDTHAT
(a) in the preparation of the Annual Accounts, the applicable
accounting standards had been followed along with proper
explanation relating to material departures;
(b) the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the company at the end of the
(d) the Directors had prepared the annual accounts on a going
concern basis; and
E  THE$IRECTORSHADLAIDDOWNINTERNALlNANCIALCONTROLSTOBE
FOLLOWED BY THE COMPANY AND THAT SUCH INTERNAL lNANCIAL
controls are adequate and were operating effectively.
(f) the Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and that
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.

For and on behalf of the Board

(Sanjiv Singh)
Place: New Delhi Chairman
Date : 15 July, 2019
th
DIN: 05280701

AWARDS & ACCOLADES
IndianOil moved up 31 positions as the top
ranked Indian company among the world’s
largest corporates in the prestigious
Fortune ‘Global 500’ listing for 2018
The Company has also retained its top
position in the annual rankings of Business
Today (BT-500), Businessworld (The BW
Real 500), Business Standard (BS-1000),
The Economic Times (ET-500) and
Financial Express (FE-1000) by net
revenue
IndianOil was ranked among the top 10
'Most respected companies' in India in a
special report published by Businessworld
in Nov./Dec. 2018
IndianOil emerged as one of the 'best
companies to work for' in India for 2019
in a study conducted by Great Place to
Work Institute in association with The
Economic Times
IndianOil earned the prestigious 'Vigilance
Excellence Award' of the Central Vigilance
Commission for its outstanding vigilance
awareness initiatives. The award was given
away by the Hon'ble President of India,
Shri Ramnath Kovind
60th
IndianOil was felicitated as the Best
Performer in Maharatna category for
promotion of SC/ST entrepreneurs by the
Ministry of Micro, Small and Medium
Enterprises, Govt. of India
IndianOil was conferred the Global HR
Excellence Award-2019 at the World
HRD Congress held at Mumbai
IndianOil was conferred Sustainability 4.0
Award 2018 jointly by Frost & Sullivan
and TERI in recognition of its
comprehensive sustainability initiatives as
a Leader in the Mega Large Business
Process Sector
IndianOil bagged the Dun & Bradstreet
awards 2018 in three categories:
Manufacturing, Processing & Generation:
Petroleum - Refining & Marketing; Best
Maharatna in Manufacturing; and Overall
Best Maharatna
IndianOil won the prestigious ISTD
(Indian Society for Training &
Development) National Award for
innovative training practices
Annual Report 2018-19 79
About the
Report
Chairman’s Desk
IndianOil bagged five prestigious awards
From the
instituted by the Federation of Indian
Petroleum Industry (FIPI) for the year
2017:
About IndianOil
Description of
Capitals
Ò ‘Innovator of the Year-2017' award
conferred on IndianOil R&D Centre for
successful commercialisation of
Directors and others
Octamax technology'
Ò Oil & Gas Pipeline Transportation
Company of the Year’ award
Board of
consecutively for the third time in a row
for leading performance in the growth of
pipeline infrastructure and its optimal
utilisation in an energy-efficient
manner'
Ò Human Resources Management –
Directors’
Report
Company of the Year' Award for
excellence across the entire spectrum of
HR management, particularly
Discussion & Analysis
succession planning and innovative
employee-related initiatives.'
Management’s
Ò ‘Refinery of the Year’ award for Panipat
Refinery & Petrochemicals Complex for
excellence in production and
operational efficiency, energy
conservation and refinery margin while
Responsibility Report
meeting HSE norms
Business
Report on Corporate
Governance
Ò ‘Woman Executive of the Year’ award to
Ms. Ruma Barua, Chief Manager
(Construction), Pipelines Division, for
handling several challenging
Statements
assignments of pipelines construction in
Financial
difficult areas of Jharkhand and Odisha
 80 Indian Oil Corporation Limited 2nd Integrated Annual Report

AWARDS & ACCOLADES

PETROTECH-2019 Special Technical
Award for 'Greening of the Oil & Gas
Business and Sustainability' was jointly
bestowed on IndianOil and Engineers
India Ltd. for BS-VI DHDT project at
Haldia Refinery, employing indeDiesel®
technology developed by IndianOil R&D
IndianOil R&D's Octamax Technology also
won the Innovation award for best
indigenously developed technology at the
meet
IndianOil bagged the 'Diamond Haryana
CSR Award-2018' among PSUs during
Haryana CSR Summit-2018 organised by
the Government of Haryana. The award was
bestowed on IndianOil for its various CSR
initiatives undertaken in Haryana in FY
2017-18

IndianOil received Best Loyalty

Programme award from Times Network for
its XTRAPOWER fleet card The BEST (Budding Executive Search for
Talent) contest of IndianOil's Pipelines
Division was awarded at India Concord
Summit - 2018 in the category of Best
HR practices by a PSU
IndianOil earned the Best Supplier Award-
2018 from Volvo-Eicher Commercial
Vehicles for outstanding performance as
lubricants supplier

IndianOil was awarded 'Dainik Jagran CSR

Award-2019' under Poverty Eradication
Category amongst PSUs for the vegetable
cellar project at Leh, Jammu & Kashmir
IndianOil's Refineries Division won the
prestigious TPM Award instituted by Japan
Institute of Plant Maintenance
PETROTECH - 2019 Special Technical
Award for `Greening of the Oil & Gas
Business and Sustainability was jointly
bestowed on IndianOil and Engineers India
Ltd. for BS-VI DHDT project at Haldia
Refinery, employing indeDiesel®
technology developed by IndianOil R&D
Mathura Refinery bagged the first prize in
the prestigious Refinery Performance
Improvement Award for 2017-18 given
away at the 23rd Refining &
Petrochemicals Technology Meet hosted
by Centre for High Technology
IndianOil's SERVO brand lubricants were
conferred the Superbrand status by the
Superbrand Council of India in its 2018
edition. This is the 14th consecutive year IndianOil bagged the runners-up award at
of the prestigious recognition for the brand Swachhta Pakhwada Awards-2018, an
MoP&NG initiative to honour companies
that have done exemplary work during the
Swachhta Pakhwada fortnight (July 1-15,
IndianOil bagged the 'Company of the 2018)
Year' Award in petrochemicals at the 10th
edition of IndiaChem-2018 at Mumbai.
The prestigious award has been instituted
jointly by the Department of Chemicals &
Petrochemicals, Govt. of India, and FICCI
IndianOil was bestowed the Global HR
Skill Development Award-2019 in Talent
Management category by the Energy and IndianOil sportstars A Sharath Kamal (table
Environment Foundation tennis) and Harika Dronavalli (chess) were
conferred Padma Shri, the fourth highest
civilian award
Indian Chamber of Commerce (ICC) IndianOil sportstars Rohan Bopanna
declared IndianOil the winner in PSE (tennis), Manika Batra (table tennis), Hima
Excellence Awards among Maharatna Das (Athletics) and N Sikki Reddy
(badminton) bagged Arjuna Awards
PSUs for its innovative vegetable cellar
project undertaken for farmers in Leh
 60th Annual Report 2018-19 81

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.

Directors and others

are retained for growth of the Company and other needs. The
objective of the policy is to lay down a consistent approach to » The company is committed to continuous growth and has
dividend declaration. PLANS REQUIRING SIGNIlCANT CAPITAL OUTLAY 4HE RETAINED

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
lNANCIALYEARMAYINTERALIACONSIDERTHEFOLLOWINGFACTORS
• 0ROlTFORTHElNANCIALYEARASWELLASGENERALRESERVESOF
the Company
• 0ROJECTIONSOFFUTUREPROlTSANDCASHmOWS
• Borrowing levels and the capacity to borrow
• Present and future Capital expenditure plans of the
Company including organic/inorganic growth avenues.
• Applicable taxes including tax on dividend
• Compliance with the provisions of the Companies Act
or any other statutory guidelines including guidelines
issued by Govt. of India
• Past dividend trend for the Company and the industry
GENERAL:
Discussion & Analysis
» In the event of the policy being inconsistent with any new
regulatory provision, such regulatory provision shall prevail
Management’s
upon the corresponding provision of this policy and the
policy shall be construed to be amended accordingly from the
effective date of such provision.
» The Company reserves its right to alter, modify, add, delete or
Responsibility Report
amend any or all of the provisions of the policy as it may deem
lTORINACCORDANCEWITHTHEGUIDELINESASMAYBEISSUEDBY
SEBI, Government of India or any other regulatory authority.
Business
The change in the policy shall, however, be disclosed
ALONGWITHTHEJUSTIlCATIONTHEREOFONTHE#OMPANYSWEBSITE
and in the ensuing Annual Report in accordance with the Report on Corporate
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

IndianOil has been actively engaged in a gamut of social welfare/
PRIVILEGEDSECTIONS
upliftment activities across the nation, in addition to reaching
essential fuels viz. Kerosene, LPG, Petrol, Diesel, etc. to the
nook and corner of the country. IndianOil’s key Corporate Social
From the
7ITHANOBJECTIVETOHELPGIRLSFROMTHEUNDER
of the society to gain admission in prestigious Engineering
Institutes viz. IITs, NITs, CETs, IIITs, etc., IndianOil started a
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,

which invariably include marginalized / underprivileged sections
MEANSBASIS4HEENTIRECOST
of the society, viz. schedule caste, schedule tribe, other backward
Capitals
Maximum 30 girls are selected for each centre through written test
ANDPERSONALINTERVIEWONMERITnCUM
for specialized coaching, study material, boarding, food & other
CASTE PHYSICALLY HANDICAPPED ETC 7ITH 0AN
)NDIA PRESENCE consumables, blanket, hygiene kit, dress set, health insurance

Directors and others

IndianOil undertakes CSR activities across the country, from ETCISBORNEBY)NDIAN/IL$URING GIRLSTUDENTSWERE
Leh in J&K in the North, to the North Eastern States, to the enrolled for Bhubaneswar Centre and 26 girls for Noida Centre.
aspirational/ backward districts/ naxal affected areas, to Gujarat in

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%

Discussion & Analysis

600 99%
99%

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 OPERATINGINTHECATCHMENTAREASOF2ElNERY5NITSIE-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

2015-16 2016-17 2017-18 2018-19

CSR Budget (` Cr.) (LH axis)

CSR Expenditure (` Cr.) (LH axis)
Statements
Financial

MMU operating in the catchment area - Mathura, UP

 84 Indian Oil Corporation Limited 2nd Integrated Annual Report

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
"STARTED
#ORPORATION!,)-#/ 4HEBENElCIARIESWERESELECTEDANDTHEIR
disabilities were assessed through assessment camps organized
in the villages near the target locations. The training to use these
assistive devices were also provided at the distribution camps.
PROVIDESKILLEDMANPOWERTOTHEINDUSTRY)NITIALLY3$)
operation in 2 trades viz. Industrial Electrician & Welder. However,
with increasing demand of skilled manpower, 6 new courses
were added viz. Computer Data Application (only for girls), Fitter
Fabrication, Instrumentation Technician, Pipe Fitter (City gas
Distribution), Solar PV Installation and LPG Mechanic. About
240 students per batch are being skilled in 8 trade courses,
which are of 3 to 6 months duration each. Since inception, 810
UNDERPRIVILEGED YOUTH WERE SKILLED AND CERTIlED WITH OVER 
placements. Hon’ble President of India laid the foundation of the
PERMANENT CAMPUS OF 3$)
" ON  AT 4ARABOI *ATNI
/DISHAWHICHWILLBEAMEGA
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.

Handing over of aids and assistive kits to Divyangjan at Digboi, Assam

4. IndianOil Gyanodaya Scheme in Govt. ITIs &

Polytechnics
IndianOil Gyanodaya Scheme was launched in 2017 with an aim to
PROVIDESCHOLARSHIPSONMERIT CUM MEANSBASISTOSTUDENTSPURSUING
 YEARREGULARCOURSESIN'OVERNMENT)4)SAND YEARREGULARCOURSES
in Government Polytechnics, to incentivize them to perform well.
The scheme aims to cover 36 Government institutes (18 ITIs and 18
0OLYTECHNICS NEAR)NDIAN/IL2ElNERYLOCATIONSSTUDENTSPER
batch are selected from each institute every year. Each student is
provided scholarship of ` PERMONTHFORTHEENTIREDURATIONOF
THEREGULARCOURSES$URING STUDENTSFROM)4)S Inauguration of main campus of SDI, Bhubaneshwar
and Polytechnics were selected for this scheme.

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,

Directors and others

IS A  BED HOSPITAL WITH MODERN FACILITIES )T CATERS TO THE
population residing near Digboi and other nearby areas of the
North East. Every year, about 1 lakh patients are treated at this

Board of
HOSPITALOUTOFWHICHABOUTARENON 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.

Discussion & Analysis

Management’s
7. Empowering women through
Pradhan Mantri Ujjwala Yojana
As per a study by World Health
Organization, about 1 million people

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

PREVIOUS YEARS PROlT TOWARDS RELEASE

OF ONE TIME GRANT TO "0, FAMILIES
in rural areas for release of new LPG
CONNECTIONS $URING   UNDER
CSR, LPG connections were released to
about 5.33 lakh families.
Statements
Financial
 86 Indian Oil Corporation Limited 2nd Integrated Annual Report

9. Swarna Jayanti Samudayik Hospital, Mathura,

Uttar Pradesh
Swarna Jayanti Samudayik Hospital at Mathura (with 50 beds),
established in 1999, provides medical treatment to residents
NEAR -ATHURA 2ElNERY 5TTAR 0RADESH 4HE HOSPITAL PROVIDES
free treatment to the destitute and offers subsidized treatment
TOOTHERS$URING
PATIENTSWERETREATEDATTHIS
Hospital, out of which operative procedures were conducted on
727 patients.
Swarna Jayanti Samudayik Hospital, Mathura, UP
10. Sarve Santu Niramaya, Digboi, Assam
 FOR PROMISING YOUNG SPORTS PERSONS REPRESENTING THE
IndianOil’s unique CSR initiative titled “Sarve Santu Niramaya”
(Good health to all) was launched in December 2012 to provide
free health consultation and free medicines to human beings
AS WELL AS LIVESTOCK OF THE VILLAGES NEAR $IGBOI 2ElNERY )T WAS
felt that good health of livestock is as important as that of the
human beings, as livestock was a key livelihood generator for the
VILLAGERS$URING
Sports Scholars- Lalith Babu (Chess) & Soumya Swaminathan (Chess)
11. IndianOil Sports Scholarship Scheme
IndianOil has been promoting sports for over three decades. In
line with the sports policy adopted in 1985, the Corporation has,
over the years, recruited many promising sports persons, who went
on to reach their peak in their chosen disciplines. The purpose
of recruiting sportspersons is to nurture their talent early on,
enhance their performance at the National & International level &
bring laurels for the Company and the Country.
IndianOil introduced a Sports Scholarship Scheme in the year

States in team games and National ranking in others. This scheme
started with 55 scholarships in 7 games/sports. At present, 250
scholarships in 20 games/sports (Olympic sports categories &
other popular games viz. Cricket, Carom, Chess, etc) are awarded
to upcoming junior players from 13 to 16 years of age in two
categories viz. Elite Scholar and Scholar. The scholarship amount
3ARVE3ANTU.IRAMAYACAMPSWERE varies from ` 
TO` 
PERMONTHFOR%LITE3CHOLARS
organized, in which 2,507 human beings and 6,510 Livestock and ` 
TO`
PERMONTHFOR3CHOLARSFORAPERIODOF
were treated/ vaccinated. 3 years and cost of kit items is also paid by IndianOil. In addition,
IndianOil also provides assistance towards travel, lodging etc. for
SCHOLARSININDIVIDUALGAMES$URING
SPORTSPERSONS
BENElTTEDFROMTHESCHEMEANDSINCEINCEPTIONMORETHAN
SPORTSPERSONSHAVEBENElTTEDFROM)NDIAN/ILSCHOLARSHIPSCHEME

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

Directors and others

Board of
Annual Report on CSR Activities for the Financial
Year 2018-19

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

Discussion & Analysis

SUSTAINABLE MANNER AND CONTRIBUTE TO THE ECONOMIC WELL BEING
1 Shri Parindu K. Bhagat, Independent Director Chairman
of the country, while improving the quality of life of the local

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
3. CSR Budget for the FY 2018-19
As per the provisions of Section 135 of the Companies Act 2013,
the CSR expenditure should be at least 2% of the average net
PROlTSOFTHE#OMPANYMADEDURINGTHEIMMEDIATELYPRECEDING
2nd Integrated Annual Report
Annexure-A
IndianOil’s Sustainability & CSR Policy
IndianOil’s Sustainability & CSR (S&CSR) vision is to operate its
activities in providing energy solutions to its customers in a manner
lNANCIALYEARSINPURSUANCEOFITS#320OLICY
THATISEFlCIENTSAFEETHICALWHICHMINIMIZESNEGATIVEIMPACT
4HE AVERAGE NET PROlT OF )NDIAN/IL IN THE LAST  YEARS WAS on environment and enhances quality of life of the community,
` 24,529.81 crore. towards sustaining a holistic business.

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
THEYEARWHICHWILLBENON 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.

Directors and others

Annexure-B

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

Discussion & Analysis

#32"UDGETFOR  490.60

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#OMMITTEE0UNJAB 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

Directors and others

Ganga Fund
5 Swarna Jayanti Samudayik Healthcare Local Uttar 6.50 6.01 6.01 Direct
Hospital, Mathura Pradesh/

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

Discussion & Analysis

workers & their wards at Education Varanasi/
Prayagraj through Swachh Uttar Pradesh

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
TANKSPROVISIONOFWATERTAPCONNECTIONWATERPURIlERSWATERCOOLERSTOSCHOOLSCOMMUNITYCENTRESORGANIZINGHEALTHCAMPSFOR
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

Directors and others

of applicable statutory provisions and the adherence to good and Disclosure Requirements) Regulations, 2009 (No such
corporate practices by INDIAN OIL CORPORATION LIMITED event during Audit Period)
(L23201MH1959GOI011388) (hereinafter called the “Company”)

Board of
d. The Securities and Exchange Board of India (Share Based
FORTHElNANCIALYEARENDEDst March, 2019. Secretarial Audit
 .O SUCH EVENT
was conducted in a manner that provided us a reasonable basis
for evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon.
%MPLOYEE "ENElTS  2EGULATIONS 
during Audit Period)
e. The Securities and Exchange Board of India (Issue and Listing
of Debt Securities) Regulations, 2008.
"ASEDONOURVERIlCATIONOFBOOKSPAPERSMINUTEBOOKSFORMS

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.

Discussion & Analysis

secretarial audit, we hereby report that in our opinion, the g. The Securities and Exchange Board of India (Delisting of

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 MECHANISMINPLACETOTHEEXTENTINTHEMANNER 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; OILANDGASBUSINESSASAPPLICABLETOTHE#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

e. The Energy Conservation Act, 2001;

Financial

Direct Investment, Overseas Direct Investment and External

Commercial Borrowings; f. The Petroleum & Natural Gas Regulatory Board Act,
2006;
 94 Indian Oil Corporation Limited
g. Petroleum & Mineral Pipelines (Acquisition of Rights of
User in Land) Act, 1962
h. Petroleum & Natural Gas Rules 1959,
i. The Oil Industry (Development) Act, 1974.
We have also examined compliance with:
• the applicable clauses of Secretarial Standards in respect of
-EETING OF "OARD OF $IRECTORS 33
  AND 'ENERAL -EETINGS
33
  ISSUED BY THE )NSTITUTE OF #OMPANY 3ECRETARIES OF
India;
• Securities and Exchange Board of India (Listing Obligation &
Disclosure Requirement) Regulation, 2015 “SEBI (LODR)”.
During the period under review the Company has complied with the
provisions of the Act, Rules, Regulations, Guidelines, Standards,
etc. mentioned above except to the extent as mentioned below;
A  4HE#OMPANYDIDNOTHAVE
1. Requisite number of Independent Directors on its Board
as required under Regulation 17 of SEBI(LODR) for the
period 26th July 2018 to 31st March, 2019;
2. Woman Director on its Board as required under Section
2nd Integrated Annual Report
India. The Company has responded to the stock exchanges
explaining its position with a request to waive off the penalty.
• Adequate notices were given to all directors to schedule the
Board Meetings, and the same was sent at least seven days
in advance, agenda and detailed notes on agenda were sent
at least 7 days before the date of Meeting, and a system
exists for seeking and obtaining further information and
CLARIlCATIONSONTHEAGENDAITEMSBEFORETHEMEETINGANDFOR
meaningful participation at the meeting.
• As per the minutes of the Board duly recorded and signed by
Chairman, the decisions of the Board were unanimous and no
dissenting views have been recorded.
• The agenda items are deliberated before passing the same and
the views / observations made by the Directors are recorded in
the minutes.
We further report that there are adequate systems and processes
in the Company commensurate with size and operations of the
Company to monitor and ensure compliance with applicable laws,
rules, regulation and guidelines.
We further report that during the audit period the Company has
MADEBUY
BACKOFFULLYPAIDUPEQUITYSHARESOF
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

Directors and others

1 IndianOil – Issuance of 5 years Issuance of IOAGPL had 26.10.18 NIL Not
Adani Gas Corporate Corporate sought Corporate applicable
Pvt. Ltd. Guarantee Guarantee of Guarantee from

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

Discussion & Analysis

capital)

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

For and on behalf of the Board

Governance

3D
(Sanjiv Singh)
Statements

0LACENew Delhi Chairman

Financial

$ATE15.07.2019 DIN: 05280701

 96 Indian Oil Corporation Limited 2nd Integrated Annual Report

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 ASARESULTOFWHICHIMPLEMENTABLESCHEMES APPROX  32&4YEAR HAVE BEEN IDENTIlED IN HOUSE BY THE
WITHSAVINGPOTENTIALOF32&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

S. Energy saving schemes Estimated Cost Estimated Fuel Savings

No. (` in Lakh) 3TANDARD2ElNERY&UEL
Equivalent) MT/Year
1 2OUTINGOF!65.APHTHA3TABILIZERmARETO&'HEADERAT0ARADIP2ElNERY 20.0 13,800
2 /PTIMIZATIONOF403OPERATIONS MAXIMIZING4' OPERATIONAT"ARAUNI2ElNERY 214.5 6,200
3 (EATRECOVERYFROM62IN&05 BYUTILIZINGSTANDBY,03GENERATOROF(6'/AT 11.3 4,280
'UJARAT2ElNERY
4 Reduction in LP steam condensation at TPS from 15 TPH to 5 TPH at Panipat 15.0 4,000
2ElNERY
5 ('5 !0(RECTIlCATIONINCREASEINAIROUTLETTEMPOF% "AT'UJARAT 216.9 3,600
2ElNERY
6 'ENERATIONOF-0STEAMFROM,'/#2IN!65AT-ATHURA2ElNERY 192.5 3,200
7 Scheme to maximize MP and MLP steam generation from Diesel CR of HCU at 12.0 3,000
0ANIPAT2ElNERY
8 )NSTALLATIONOF!UTODECANTATIONVALVESINTANKSAT'UJARAT2ElNERY 350.1 2,000
9 3CHEMEFORHEATINGOF.35 &EEDWITH('/2D!65  AT0ANIPAT2ElNERY 8.0 1,800
10 )NTEGRATIONOF"&7NETWORKOF('5 )('5 ))$($36"5AT'UJARAT2ElNERY 3.9 1,670
11 Saving of steam lost through condensation by isolation of one of the two 8” 2.5 3.1 1,600
+M-0STEAMLINESTO"ITUMENMARKETINGTERMINALAT'UJARAT2ElNERY
12 Improving preheat in ARU and SWS by Plate type heat exchange at Barauni 145.5 1,500
2ElNERY
13 Routing of Bio gas generated from PTA ETP to TGTU (Unit 26 along with 57) 10.0 1,500
INCINERATORAT0ANIPAT2ElNERY
14 )NSTALLATIONOF4HERMO COMPRESSORAT04!AT0ANIPAT2ElNERY 11.5 1,500
15 #LOSUREOFANTI SURGEVALVEOF2'#TURBINEIN$($4AT"ARAUNI2ElNERY 13.7 1,200
16 (EATUTILIZATIONOF!TOMIZING!IR#OOLEROF'4AT"ARAUNI2ElNERY 1.0 1,000
 60th Annual Report 2018-19 97

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

• !5 2E RUNROUTINGOFHOT+ BOTTOMTO-31 "ONGAIGAON2ElNERY

Directors and others

• #'0 !DDINGCONDENSATEPRE HEATERCOILIN(23'  • 2OUTINGOF#$5 )STABILIZEROFFGASTO$#5 )7'#

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

Discussion & Analysis

• (EAT2ECOVERYFROM"OILERS(23'SBLOW DOWN
• Commissioning of 1 MW Solar Power

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

• Crude Preheat Temperature Improvement by Pinch Analysis

AND-ODIlCATIONIN0REHEAT4RAININ!65
 98 Indian Oil Corporation Limited 2nd Integrated Annual Report

B) Efforts made towards Technology Absorption, Adaptation and Innovation

As a continuous efforts towards improvement of product pattern, viii) Isomerisation Technology
PRODUCT QUALITY IMPROVEMENT OF ENERGY EFlCIENCY AS WELL AS
Isomerisation Technology “ZEOSOM” developed by R&D
to meet the dynamic environmental emission norms and to
Centre of IndianOil and licensed jointly with EIL has been
IMPROVEPROlTMARGINTHE#ORPORATIONHASADOPTEDMOSTMODERN
technologies in line with the latest worldwide developments in the IMPLEMENTEDAT"ONGAIGAON2ElNERYFORMEETING-3QUALITY
lELDOFPETROLEUMRElNINGANDPETROCHEMICALPRODUCTION requirements.

-AJORTECHNOLOGIESADOPTEDBYYOUR#ORPORATIONAREASFOLLOWS ix) Naphtha Hydrotreatment Technology

Naphtha Hydrotreatment technology developed by R&D

a. Indigenous Technology Centre of IndianOil and licensed jointly with EIL is under
i) Diesel Hydrotreatment Technology IMPLEMENTATIONAT"ONGAIGAON2ElNERY

Diesel Hydrotreatment technology developed by R&D x) Octamax Technology

Centre of IndianOil and licensed jointly with EIL has been
Octamax technology, developed by R&D Centre of IndianOil,
IMPLEMENTED AT "ONGAIGAON 2ElNERY FOR MEETING $IESEL
HAS BEEN SUCCESSFULLY IMPLEMENTED AT -ATHURA RElNERY FOR
quality requirements. The technology is under implementation
production of High octane Gasoline blending stream from
AT(ALDIA2ElNERY
RElNERY,0'STREAMS
ii) Hexane Hydrogenation Technology
Hexane Hydrogenation process for production of Food grade b. Imported Technology
Hexane (WHO grade quality), developed by R&D Centre of i) Alkylation Technology
IndianOil with indigenous catalyst has been successfully
IMPLEMENTEDAT'UJARAT2ElNERY For production of MS, Alkylation technology from M/s Exxon
-OBIL53!HASBEENIMPLEMENTEDAT0ARADIP2ElNERY
iii) INDAdeptG Technology
ii) ATF Treatment Technology
INDAdeptG unit based on technology developed by R&D
Centre of IndianOil and licensed jointly with EIL has been ATF Merox Treatment Technology from M/s UOP, USA has been
IMPLEMENTED AT 'UWAHATI 2ElNERY FOR DESULPHURISATION OF IMPLEMENTED AT 'UJARAT AND 0ANIPAT 2ElNERIES 4ECHNOLOGY
cracked gasoline feed stock. from M/s Merichem, USA has been implemented at Paradip
2ElNERY
iv) indDSK Technology
iii) Biturox Technology
indDSK technology, developed by R&D Centre of IndianOil
and licensed jointly with EIL is under implementation at To produce various grades of Bitumen as well as to meet the
0ARADIPRElNERYFORPRODUCTIONOFULTRA LOWSULPHURKEROSENE quality requirements, Biturox technology from M/s Porner,
(PCK) from kerosene feedstock by hydro desulphurisation. Austria has been employed at Gujarat, Mathura and Barauni
v) indJet Technology 2ElNERIES

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
RElNERYFORPRODUCTIONOFJETFUELFROMKEROSENEFEEDSTOCKBY
5/053!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

vii) Catalytic Reforming Technology
For improvement in Octane number of Motor Spirit,
Continuous Catalytic reforming technology (CCRU) from M/s
About the
Report
xiii) Fluidised Catalytic Cracking Technology
Fluidised Catalytic Cracking (FCC) technology 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

Directors and others

IMPLEMENTEDAT0ANIPAT2ElNERYASPARTOF0ANIPAT2ElNERY Hydrogen generation technology from M/s Linde, Germany was
Expansion Project. Delayed Coker Technology from M/s Foster adopted for Hydrogen production and supply to Hydrocraker
7HEELER 53! HAS BEEN IMPLEMENTED AT 'UJARAT 2ElNERY
under Resid Upgradation Project and also implemented at
0ARADIP 2ElNERY AND IS UNDER IMPLEMENTATION AT (ALDIA
2ElNERYUNDER$ISTILLATE9IELD)MPROVEMENT$9)0 0ROJECT
x) Diesel Hydro Desulphurisation Technology
Diesel Hydro Desulphurisation (DHDS) Units have been
INSTALLED AT -ATHURA  0ANIPAT RElNERIES WITH TECHNOLOGY
from M/s IFP (now Axens), France and at Gujarat & Haldia
UNITAT'UJARAT2ElNERYANDHASBEENIMPLEMENTEDAT"ARAUNI
Board of
2ElNERY UNDER -3 1UALITY )MPROVEMENT 0ROJECT (YDROGEN
generation technology obtained from M/s. Haldor Topsoe,
Denmark is in operation at Gujarat, Mathura, Haldia, Panipat
AND"ARAUNIRElNERIESANDHASBEENIMPLEMENTEDAT'UJARAT
2ElNERYUNDER2ESID5PGRADATION0ROJECT3IMILARTECHNOLOGY
from M/s KTI, the Netherlands has been implemented for
Directors’
Report
Hydrogen generation at Guwahati, Digboi, Mathura and
(ALDIA2ElNERIES(YDROGENGENERATIONTECHNOLOGYFROM-S
RElNERIES WITH TECHNOLOGY FROM -S 5/0 53! TO MEET THE Technip Benelux B.V, Netherlands has been implemented

Discussion & Analysis

Diesel quality requirement w.r.t Sulphur. Technology from M/s AT "ONGAIGAON 2ElNERY UNDER $IESEL 1UALITY IMPROVEMENT
Haldor Topsoe, Denmark is under implementation for revamp project.

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

Divided Wall Column (DWC) technology is a new separation

TECHNOLOGY WHICH SEPARATES A MULTI
COMPONENT FEED INTO Coker LPG Merox Treatment technology from M/s UOP, USA
THREEORMOREPURIlEDSTREAMSWITHINASINGLETOWERTHEREBY
eliminating the need for a second column to obtain high
purity products. This design saves capital and energy costs by
eliminating operation of second separation column. DWC of
HAS BEEN IMPLEMENTED AT 0ANIPAT 2ElNERY AND IS UNDER
IMPLEMENTATIONAT(ALDIA2ElNERYUNDER$9)0PROJECT&##
LPG Treatment technology from M/s Mericam, USA has been
IMPLEMENTEDAT(ALDIAAND0ARADIP2ElNERIES3TRAIGHT2UN
Statements

-S+"253!ISUNDERIMPLEMENTATIONAT-ATHURA2ElNERY LPG Treatment technology from M/s UOP, USA has been
Financial

AT##25 .35 IMPLEMENTEDAT0ARADIP2ElNERY

 100 Indian Oil Corporation Limited 2nd Integrated Annual Report

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-ATHURA0ANIPATAND"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$ESIGN53!HAVEBEENIMPLEMENTEDFOR  2ElNERIES AT 'UJARAT (ALDIA -ATHURA AND "ARAUNI ARE
DOWNSTREAM POLYMER PLANTS VIZ 0OLY
0ROPYLENE 5NIT ($0% provided with Sulphur Recovery Technology from M/s.
unit, Swing Unit (HDPE/LLDPE) and MEG Unit respectively. Stork Comprimo (now Jacob), Netherlands. The Sulphur
Technology from M/s ABB Lummus has been implemented for recovery technology from M/s. Delta Hudson, Canada
production of Butadiene. Technology from M/s Basell, Italy is HAS BEEN EMPLOYED AT 0ANIPAT RElNERY &URTHER 3ULPHUR
UNDER IMPLEMENTATION AT 0ARADIP 2ElNERY FOR PRODUCTION OF recovery technologies from M/s Black & Veatch Pritchard,
0OLY
0ROPYLENE4ECHNOLOGYFROM-S3CIENTIlC$ESIGN53! USA have been implemented at Panipat, Gujarat and
ISUNDERIMPLEMENTATIONAT0ARADIP2ElNERYFORPRODUCTIONOF
MEG. Ethylene Recovery Technology from M/s ABB Lummus.
xxiii) Naphtha Treatment Technology
FCC Naphtha Treatment Technology from M/s Mericam,
USA for removal of Mercaptans and H2S is implemented at
0ARADIP 2ElNERIES 4ECHNOLOGY FROM -S 4ECHNIP +4)
3PAINHASBEENIMPLEMENTEDAT(ALDIA2ElNERYUNDER/NCE
through Hydrocracker Project. Technology from M/s Jacobs,
Netherlands has been implemented under additional Sulphur
2ECOVERY 5NIT AT -ATHURA 2ElNERY 4ECHNOLOGY FROM -S
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
8YLENEAT0ANIPATTECHNOLOGIESFROM
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

• Production of better grades of Bitumen The year of import:  

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

Directors and others

• Naphtha conversion to high value Paraxylene (PX) and The details of technology imported:
benzene and subsequent PX conversion to higher value PTA
• Technology for Residue upgradation through Ebullated

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

Discussion & Analysis

FUELS CAN CONFORM TO "3 )6"3 6) FUEL STANDARDS AND LATEST INIMPLEMENTATIONSTAGE %XPECTEDCOMMISSIONINGBY*UNE

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

 4ECHNOLOGY FOR PRODUCTION OF SULPHUR FROM -S

The year of import: 
Prosernat,France
 4ECHNOLOGY FOR (YDROGEN 'ENERATION FROM -S 4ECHNIP Whether the technology been fully absorbed: The project
France IS IN IMPLEMENTATION STAGE  %XPECTED COMMISSIONING BY
-ARCH 
 4ECHNOLOGYFOR(IGH2ON'ASOLINESTREAM!XENS&RANCE
Statements
Financial
 102 Indian Oil Corporation Limited 2nd Integrated Annual Report

V #ATALYTICREFORMINGUNITPROJECTIN'UWAHATI2ElNERY D) The areas in which R&D activities were carried

The details of technology imported: out during the year are as under:-
 4ECHNOLOGYFORPRODUCTIONOF2EFORMATEFROM-S5/0 • $EVELOPMENT  DEMONSTRATION OF 2ElNERY PROCESS
USA. technologies

The year of import:  • Licensing & commercialization of R&D developed technologies

Whether the technology been fully absorbed: The project is • -ODELLINGANDSIMULATIONn2ElNERY0ROCESSES

INIMPLEMENTATIONSTAGE
%XPECTEDCOMMISSIONINGBY-AY
• 4ECHNICALSERVICESTORElNERIESPETROCHEMICALSANDPIPELINE
2021 division
VI 'UJARAT2ElNERY%XPANSION0ROJECT • ,UBRICANT'REASESAND3PECIALITIES
&UEL%FlCIENT0RODUCTS
The details of technology imported: • Metal Working Tribology and Boundary Lubrication

 4ECHNOLOGYFOR,0'4REATMENT5NITFROM-S5/053!
 4ECHNOLOGY FOR PRODUCTION OF 2EFORMATE AND )SOMERATE
from M/s UOP, USA.
 4ECHNOLOGY FOR 0OLY 0ROPYLENE PRODUCTION FROM -S
Lummus Novolen, Germany.
• M15 fuel evaluations, fuel additives development and
commercialization
• Fuel Quality and Emission related Studies
• Carbon Capture & utilization to valuable products
• !LTERNATIVEFUELS
(#.'nd & 3rd'ENERATIONBIO
FUELS

 4ECHNOLOGY FOR DESULPHURISATION OF &## 'ASOLINE FROM
M/s Axens, France • !NALYTICALSUPPORTFOR"3
)66)'ASOLINEAND$IESEL

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

VII 0ANIPAT2ElNERY%XPANSION0ROJECT • Nanotechnological interventions for enhanced performance of

fuels and lubricants
 4ECHNOLOGY FOR DESULPHURISATION OF GAS OILS FROM -S
Shell, • !LTERNATE%NERGYn'ASIlCATION(YDROGEN&UEL#ELLAND3OLAR

 4ECHNOLOGYFORDESULPHURISATIONOF6ACUUM'ASOILSFROM • 4ROUBLESHOOTING REVAMP AND OPTIMIZATION FOR RElNERY

M/s UOP, USA processes

 4ECHNOLOGY FOR PRODUCTION OF 2EFORMATE AND )SOMERATE • #ATALYSTS DEVELOPMENT FOR RElNING AND PETROCHEMICAL
from M/s UOP, USA processes

 4ECHNOLOGYFORPRODUCTIONOF3ULPHURIC!CID2EGENERATION • "ITUMINOUSPRODUCTS 0-"#2-"

Unit from M/s MECS • Corrosion, Remaining life assessment and Material failure
The year of import:  Analyses

Whether the technology been fully absorbed: The project is • "IOTECHNOLOGYINTERVENTIONSFORRElNERY%40BIOMETHANATION
INIMPLEMENTATIONSTAGE %XPECTEDCOMMISSIONINGBY-AY 2G ethanol
2023 • Expenditure on R&D

C) Foreign Exchange Earning and Outgo Sl. Particulars Amount (` crore)

The total Foreign Exchange earned and outgo during No.
the year is as under :- (a) Capital 137.15
 &OREIGN%XCHANGEEARNED  `22,254.54 crore (b) Recurring 300.19
Total 437.34
 &OREIGN%XCHANGEOUTGO  `2,63,449.91 crore
 60th Annual Report 2018-19 103

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
1.1. Global Economic Backdrop
Global economic growth slowed down to 3.6% in 2018 from
3.8% recorded in 2017. There was a marked deceleration
in the growth of advanced economies mainly on account
a sizeable slippage in growth in Euro Area to 1.8% in
2018 from 2.4% in 2017 as growth slackened in key
Euro Area economies like Germany, France & Italy. United
States was the only exception to the overall slackening
growth momentum in the advanced economies, where a
lSCALSTIMULUSTHROUGHTAXCUTSANDINCREASEINSPENDING
propelled demand. Growth in emerging economies also
IN THE PREVIOUS lSCAL $ESPITE THIS '$0 GROWTH DURING
the year was lower than 7.2% recorded in 2017-18. The
slippage in momentum was on account of deceleration in
agriculture and services sectors and government spending.
Besides, there was deceleration in growth of non-oil
IndianOil at a
imports, mainly capital goods and gold. In the last quarter
Glance
of 2018-19, the economy’s performance was subdued in
particular; growth in the quarter fell to 5.8% on account
of slowdown in industry sector and investment expenditure
along with decline in output in the agriculture sector.
Description of
On the macroeconomic front, India posted a mixed
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,

Directors and others

FOODPRICESWHILEINmATIONINOTHERGOODSANDSERVICESDID
Thailand, Vietnam). The slowdown in global growth was
exhibit stubbornness and fuel prices were under pressure
mirrored in slippages in world trade growth, industrial
AS WELL -ODERATION IN INmATION AND SLIPPAGES IN GROWTH
production growth and Purchasing Managers’ Indices

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/NTHEUPSIDENETFOREIGNDIRECTINVESTMENT
the larger advanced economies. During the year, European INmOWSATBILLIONIN WEREHIGHERTHANTHE

Discussion & Analysis

Central Bank (ECB) ended its bond buying programme previous year. Foreign portfolio investments, however,
and policy rates in the US rose by 100 basis points. turned negative during the year on account of global cues

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

OFlNANCIALMARKETCONDITIONSAMONGOTHERSREMAINAND 2.1. Global Energy Scenario

cloud the global outlook.
During the year, primary energy consumption grew by
1.2. Indian Economic Backdrop 2.3% to 14,301 million tonnes of oil equivalent (mtoe),
compared to 1.9% growth in 2017. China, the United
During the year, Indian economy grew by 6.8% and
States, and India together accounted for nearly 70% of
continued to be the fastest growing large economy. Growth
the rise in energy demand.
Statements

was propelled by private spending, industry, manufacturing

Financial

and capital formation. Exports continued to post a healthy

 104 Indian Oil Corporation Limited 2nd Integrated Annual Report

The growth in energy demand was broad-based, with 2.1.1.3.Inventories

demand for all energy types growing, with fossil fuels
meeting nearly 70% of the growth. Oil demand grew by The supply demand scenario resulted in global supply
1.3% and coal consumption rose by 0.7%. The biggest
gains came from natural gas, which emerged as one of
the fastest growing fuels in the energy basket, accounting
for nearly 44.5% of the increase in total energy demand.
Renewables, which grew by over 4%, met around one-
quarter of the growth in total primary energy demand.
Renewables covered almost 45% of the world’s electricity
SIGNIlCANTLY EXCEEDING DEMAND IN  PARTICULARLY
during Q3 and Q4 of 2018. As OPEC and co-operating
non-OPEC members continued their production cuts
early in the year, commercial oil inventories in the OECD
WERE BELOW THE lVE YEAR AVERAGE FOR A LARGE PART OF THE
year. However, inventories began to rise after compliance
agreement to raise output from July 2018, and by the end
generation growth. Global clean energy investment totalled OF$ECEMBERINVENTORIESWEREABOVETHElVE
YEARAVERAGE
BILLIONINDOWNBYFROMLEVEL
As a result of higher energy consumption, global energy- Annual: Global Oil Supply & Demand
related carbon-di-oxide (CO2) emissions increased to 33.1
Giga tonnes (Gt) CO2 up 1.7% from the previous year.
#OAL
lRED POWER GENERATION CONTINUES TO BE THE SINGLE mbpd mbpd
largest emitter, accounting for 30% of all energy-related 101 1.2
CO2 emissions. 100 1
2.1.1 Global Oil Market 99 0.8
98 0.6
2.1.1.1. Consumption 97 0.4
Global oil consumption increased by 1.3 million barrels 96 0.2
per day (mbpd) in 2018 to 99.2 mbpd (1.3%) from 97.9 95 0
94 -0.2
mbpd in 2017. OECD demand during the year grew by
0.3 mbpd to 47.7 mbpd, an increase in demand for the 93 -0.4
92 -0.6
fourth consecutive year. Non-OECD demand increased by
2015 2016 2017 2018
0.95 mbpd to 51.5 mbpd. Demand from Asia’s emerging
economies once again grew rapidly, adding 0.8 mbpd to Total Demand Total Supply Total Stock Change
(Right Axis)
global oil demand growth.
2.1.1.2. Production
On the supply side, global oil production grew by a
robust 2.6 mbpd (2.8%) to average 100.1 mbpd, after a
subdued increase of only 0.4 mbpd in 2017. Key growth
drivers in 2018 were the US, along with Canada, Russia,
Kazakhstan, Qatar, Ghana and the UK, while Mexico,
Norway and Vietnam showed the largest declines. The Quarterly: Global Oil Supply & Demand in
US saw record production growth of 2.2 mbpd in 2018. 2018
In December 2018, monthly US crude oil production
reached 11.96 mbpd , the highest monthly level of crude mbpd
101.9
oil production in US history. US crude oil production is 101
99.9 99.6
expected to continue to grow in 2019 and 2020 averaging
99.2
12.3 mbpd and 13.0 mbpd, respectively. 98.5 98.8
98.3
In contrast, OPEC production declined by 0.1 mbpd in
2018, the second consecutive annual decline. Production
curtailments remained in place among OPEC and co- Q1 2018 Q2 2018 Q3 2018 Q4 2018
OPERATING NON
/0%# COUNTRIES FOR lRST HALF OF THE YEAR
Total Demand Total Supply
During mid-year, on the face of rising oil prices, OPEC+
producers reached a compliance agreement to raise oil
output from July 2018. In December 2018, OPEC+ agreed
to 1.2 mbpd of production cuts from January 2019 to
Source: IEA
SHOREUPmAGGINGOILPRICESANDPREVENTASUPPLYSURPLUS
 60th Annual Report 2018-19 105

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

Brent Average Monthly Price (US$/bbl)

90

IndianOil at a
80

Glance
70
60
50
40

Description of
30

Capitals
20
10
0

Directors and others

16 16 16 16 01
6 6
01 01
7
01
7 7 7
01 201 201 201
7 7 18 18 18 18 01
8
01
8
01
9
01
9
n 20 r 20 y 20 y 20 t 2 ov 2 an 2 ar 2 ay 2 y t v n 20 r 20 y 20 y 20 t 2 ov 2 an 2 ar 2
Ja a a l p l p o a a a l p
M M Ju Se N J M M Ju Se N J M M Ju Se N J M

Board of
Source: Platts

2.1.2. Global Gas Market
Natural gas consumption rose by 195 billion cubic metres
(bcm), or 5.3%, in 2018, rising to 3,849 bcm, one of
the fastest rates of growth since 1984. The demand was
driven by growing energy demand and substitution of coal.
4HESWITCHFROMCOALTOGASACCOUNTEDFOROVERONE
lFTHOF
the rise in gas demand. Growth in gas consumption was
driven mainly by the US (78 bcm), supported by China
(43 bcm), Russia (23 bcm) and Iran (16 bcm). Gas now
accounts for 8% of primary demand in China, becoming
the world’s largest natural gas importer in 2018, ahead of
Japan.
Total gas production increased by 5.2% in 2018, one of
the strongest rates of growth for output for over 30 years.
3IGNIlCANTPRODUCTIONINCREASESWEREACHIEVEDINTHE53
(86 bcm, 11.5% y-o-y growth in 2018), and Australia (17
bcm, 15.3% y-o-y growth in 2018) – supported by the
start of new LNG trains – and Russia (33.9 bcm, 5.3%
y-o-y growth in 2018). OECD natural gas production grew
by 7.3% and Non-OECD production grew by 4%.
 'LOBAL ,IQUElED .ATURAL 'AS ,.'  SUPPLIES CONTINUED
to expand at a rapid pace during last year, increasing
by almost 10% (37 bcm), as new liquefaction plants in
Australia, US and Russia were started or ramped up.
Gas prices bounced back in all key markets in 2018.
'AS PRICES IN THE 53 AVERAGED  PER MILLION METRIC
British thermal units (mmbtu) in 2018 compared to
MMBTUUPBY,.'*APANPRICEREBOUNDED
TOMMBTUINFROMMMBTUIN
The price was driven by stronger Asian LNG demand and a
Directors’
Report
tight LNG market.
2.1.3. Global Renewables Sector
Discussion & Analysis
Renewables are the fastest-growing energy source in the
world today, and are expected to play a much enlarged role
Management’s
in the global energy mix over the long-term. Renewable
generation capacity has been growing at 8-9% per annum
in the recent years. The trend continued in 2018 as well,
with total renewable energy generation capacity reaching
Responsibility Report
2,351 GW at the end of 2018, with annual increase of
7.9%, bolstered by new additions from solar and wind
energy, which accounted for 84% of the growth. Solar
Business
energy continued to dominate, with a capacity increase of
94 GW (+24%), followed by wind energy with an increase
of 49 GW (+10%). Hydropower capacity increased by 21 Report on Corporate
GW (+2%) and bio-energy by 6 GW (+5%). Almost 30% of
global power capacity is now based on renewable energy.
Governance
In solar energy capacity expansion, Asia continued to
dominate with 64 GW increase during 2018. China (45
GW), India (9.2 GW), Japan (6.5 GW) and Republic of
Korea (2 GW) accounted for most of the solar capacity
addition in Asia. Whereas China (20 GW) and the USA
(7 GW) continued to account for most expansion in wind
Statements
Financial
energy.
 106 Indian Oil Corporation Limited 2nd Integrated Annual Report

However, renewable energy deployment needs to grow
even faster, to ensure that global climate objectives and
Sustainable Development Goals can be achieved.
2.1.4. Global Energy Outlook
As per the latest energy outlooks, the global energy
demand is projected to continue growing, driven by
expansion in global output and prosperity. However, energy
EFlCIENCYINCREASESAREEXPECTEDTOMODERATETHEPACEOF
growth in the future. While global GDP is expected to more
than double by 2040, energy consumption is projected to
increase by only a third. India and China will be the largest
sources of global energy growth. Natural gas demand in
primary energy mix is expected to increase by 2040 from
current level whereas share of coal and oil is projected to
decrease. Oil and gas together are projected to account
for the largest share of the energy mix across a range of
scenarios. Renewable energy is the fastest growing source
of energy, contributing half of the growth in global energy
supplies and becoming the largest source of power by
2040.

Change in Primary Energy Demand 2017-2040 (Mtoe)

Eurasia
+108 Mtoe

North America
+69 Mtoe China
Europe +807 Mtoe
-246 Mtoe
Middle East
India Japan
+460 Mtoe
+982 Mtoe -48 Mtoe

Central and South America

Southeast Asia
+249 Mtoe
+446 Mtoe
Africa
+470 Mtoe

Source: World Energy Outlook-2018, New Policy Scenario, IEA

Note: Global Primary Energy Demand projected to rise from 13,972 million tonnes oil equivalent (Mtoe) in 2017 to 17,715 Mtoe in 2040
 60th Annual Report 2018-19 107

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

been way ahead of the global average. In the last decade,
while global energy demand grew by 1.7% annually,
BILLIONRElNERY
CUM
PETROCHEMICALSPROJECTONTHE
India’s energy demand grew at 5.7% per annum. India’s
energy mix is dominated by fossil fuels, with coal being
the leading energy source with 45% share, followed by
From the
AN AGREEMENT TO PICK UP STAKE IN THE PLANNED 53

West Coast of the country. Saudi Aramco and ADNOC
will together hold 50% stake, June 2018.
• 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

Directors and others

INCLUDINGNATURALGASPETROLEUMPRODUCTSANDRElNERIES
among others.
Key developments in the Indian energy sector that marked
the year, particularly with reference to the areas in which
the Corporation operates, were-
• BS-VI auto fuels were introduced in the National
Capital Territory (NCT) including Delhi, from 1st April
2018. The same was extended to cover 12 contiguous
districts, including key cities of Agra, Meerut and
Bharatpur, subsequently.
• To widen the reach of domestic LPG cylinders under
the Pradhan Mantri Ujjwala Yojana (PMUY) scheme,
THE'OVERNMENTDIRECTEDTHATBENElCIARIESWOULDALSO
GASIlCATIONINDUSTRIESWHENUSEDASFEEDSTOCKORIN
the manufacturing process on actual user condition,
August 2018.
Board of
• The Government launched Sustainable Alternative
Towards Affordable Transportation (SATAT) initiative
on 2nd October to promote Compressed Bio-Gas
production.
• On November 22nd, 2018, the Prime Minister of India
Directors’
laid the foundation stone of City Gas Distribution
Report
(CGD) projects in 65 Geographical Areas (GAs) in 129
districts under the 9th CGD bidding round. Bidding
Discussion & Analysis
for the 10th CGD in 50 GAs spread over 124 districts
in 14 states also launched. Award of GAs to the
Management’s
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
under the Expanded Ujjwala Scheme w.e.f. 1.4.2018.
Later, Below Poverty Line (BPL) families who have not
been covered under the Socio Economic and Caste
Census 2011 (SECC) or under the above mentioned 7
categories were also covered w.e.f. 20.12.2018.
• The Government approved the National Policy on
Biofuels in May 2018. The policy expands the scope
of raw material for ethanol production.
• )NDIA RECEIVED ITS lRST CRUDE OIL CARGO SHIPMENT
from Abu Dhabi National Oil Company (ADNOC)
for its strategic petroleum reserve at Mangalore on
21.05.18.
• National Wind-Solar Hybrid Policy was released on
14th May 2018. The policy seeks to promote new
hybrid projects as well as hybridisation of existing
WINDSOLARPROJECTS
2018.
Responsibility Report
• A consortium of Indian Oil Corporation (50% share),
Bharat Petroleum Corporation (25% Share) and
Business
Hindustan Petroleum Corporation (25% share)
was given authorisation by PNGRB for the 2,757
km cross-country Kandla-Gorakhpur LPG pipeline,
December 2018. Report on Corporate
• The Government launched the National Clean Air
Programme with an objective to reduce PM2.5 and
Governance
PM10 concentration by 20-30% by the year 2024
(compared to 2017 levels), January 2019.
• MoP&NG issues directions to companies to sell 10%
ethanol-blended petrol from April 2019. Before
this directive, subject to commercial viability, oil
Statements
marketing companies were mandated to sell 5%
Financial
ethanol-blended petrol.
 108 Indian Oil Corporation Limited
• The Government announced an outlay of ` 10,000 crore
for Phase 2 of the Faster Adoption and Manufacturing
of Hybrid and Electric Vehicles, or FAME 2 scheme,
to boost electric mobility and increase the number of
2nd Integrated Annual Report
5.1 MMT in petcoke consumption during the current year
due to the restrictions for its use as a fuel.
MS consumption registered a growth of 8.1% in 2018-
19 as compared to 10.1% growth rate in the previous
ELECTRICVEHICLESINCOMMERCIALmEETS-ARCH
Major policy decisions during the year were shaped
by environmental concerns, focus on renewable and
alternatives, importance of natural gas in the energy
mix, and need for international cooperation and foreign
investment.
2.2.1. Oil Market - Domestic
2.2.1.1.Demand Side
During 2018-19, petroleum product consumption was
211.6 MMT, registering a growth of 2.7% as against
consumption of 206.2 MMT and a growth rate of 5.9%
growth during 2017-18. This growth is despite a fall of
year. HSD consumption recorded a growth of 3.0% in
2018-19 compared to 6.6% growth in the previous year.
Consumption growth rates of these products in 2018-19
were lower compared to the previous year due to slowdown
in India’s automobile industry during 2018-19.
Domestic commercial vehicle sales increased by 17.6%
during the year compared to 20.0% growth rate in the
previous year. Passenger cars sales increased by 2.1%
during the year compared to 3.3% growth rate in the
previous year. The biggest slowdown in domestic sales
were observed in two and three-wheeler sales, which grew
by 4.9% and 10.3% compared to 14.8% and 24.2%
growth rate respectively in the previous year.

Domestic Sales Growth Rate (% y-o-y) of Automobiles

2014-15 2015-16 2016-17 2017-18 2018-19 24.2

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

Commercial and Multi- Passenger Cars and Vans Two-wheelers Three-wheelers

Utility Vehicles

Source: CMIE

The growth story of the civil aviation sector continued during the new connections were released, out of which 362.9 lakhs were
YEARWITHTRAFlCREGISTERINGDOUBLEDIGITGROWTH$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
3ULPHUR
2018-19 after recording a growth of 8.0% in the previous year.
LPG consumption grew at 8.9% CAGR during 2013-14 to 2018-
19, making it one of the fastest growing fuel. The Government’s
push to providing a clean fuel like LPG to the marginalised sections
of society through PMUY also drove up the demand. During 2018-
19, 51.4 lakh double-bottle connections (DBCs) and 455.2 lakh
'ROWTHINHEAVYANDRESIDUALmUIDSLIKE&UEL/IL&/ ,OW
Heavy Stock (LSHS) and Petcoke registered negative growth
during the year due to customers shifting to alternatives as well
as due to environmental concerns. SKO consumption continued to
decline on account of reduced allocation to states and voluntary
SURRENDEROFQUOTABYFEWSTATES54S
 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 

Directors and others

MMTPA at the end of 2018-19, making it the second largest
Domestic crude oil production declined by 4.2% during 2018-19,
RElNERIN!SIA0RIVATECOMPANIESOWNABOUTOFTHETOTAL
after falling by 0.9% in the previous year. Production during 2018-

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.

Discussion & Analysis

Management’s
Oil Supply-Demand Trend in India
BILLION
MMT

240.0 226.6 140.0

220.4

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

2014-15 2015-16 2016-17 2017-18 2018-19

POL Consumption Product Exports

Domestic Oil Production Product Imports
Crude Oil Imports 4OTAL)MPORT"ILL #RUDE0/, 53BILLIONRIGHTSCALE
Statements

Source: PPAC, MoP&NG

Financial
 110 Indian Oil Corporation Limited 2nd Integrated Annual Report

Imports / Exports 2.2.2. Gas Market-Domestic

Crude oil imports posted a 2.8% growth over the previous year in The share of natural gas in the energy basket of India is
quantity terms, rising to 226.6 MMT. With the rise in international 6% and is expected to increase in the coming years. India’s
oil prices in value terms as well, the crude oil import bill rose to natural gas demand outlook is continuously improving.
53BILLIONDURINGTHEYEARFROM53BILLIONIN The Government of India (GoI) is aiming to make India a
18. Crude oil imports during the year from different regions are gas-based economy by boosting domestic production and
DEPICTEDINTHEFOLLOWINGlGURE encouraging infrastructure rollouts. GoI has already taken
a number of steps to increase consumption of natural gas.
Regionwise Percentage Share of Crude Oil Imports in FY 2018-19
Natural gas consumption during the year increased
marginally to around 59.1 bcm, registering a growth of
North America Europe 0.2% 1.7% as against a growth of 4.5% in the previous year.
7.5% Australia 0.04% On the supply side, Natural gas production during the year
Eurasia 2.4%
was 32.9 bcm, higher by 0.7% compared with the previous
South America lNANCIALYEAR'ROSSNATURALGASPRODUCTIONDURING
10.0% 19 was the highest since 2015-16. LNG import rose to
27.0 bcm for 2018-19, higher by 2.6% compared with
Asia 2.0% THE PREVIOUS lNANCIAL YEAR )NDIA IS THE FOURTH LARGEST
LNG importer after Japan, China and South Korea, and
accounts for 7.1% of the total global LNG imports.
Africa 14.8% Middle East
63.1%

Natural Gas Production/Import Trend (in bcm)

Source: PPAC, MoP&NG

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

At present, only domestic LPG and PDS Kerosene are the

2.2.3. Power Sector & Renewable Energy
regulated products and remain under the subsidy regime.
$URINGTHEYEAR)NDIANCRUDEBASKETAVERAGEDAT
barrel rising by more than 23.8% from 2017-18 level.
During the year, gross under-recoveries increased to
` 37,390 crore from ` 25,552 crore in FY 2017-18.
Under-recovery for SKO (PDS) increased to ` 5,950 crore
from ` 4,672 crore in 2017-18, whereas under-recovery
FOR DOMESTIC ,0' UNDER $"4, 3UBSIDY $IRECT "ENElT
Transfer for LPG) scheme increased to ` 31,441 crore
from ` 20,880 crore in the previous year.
Electricity demand in the country has increased rapidly
and is expected to rise further in the years to come. In
order to meet the increasing demand for electricity in
the country, massive addition to the installed generating
capacity is required.
India’s power sector is dominated by coal, with 56% of
installed power capacity. Renewable capacity has been
growing and is now 22% of the installed power capacity in
the country.
 60th Annual Report 2018-19 111

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

Directors and others

As on 31.3.2019 Source: CEA Contributions (NDCs) under the Paris Climate Agreement;
and securing energy supplies in the face of India’s high
import dependence.

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

Discussion & Analysis

position in global solar power installed capacity. HAS A RElNING CAPACITY OF  --40! INCLUDING ITS
subsidiary) and accounts for one-third of the country’s

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

HAS REDElNED THE INDUSTRY OUTLOOK 4HE 'OVERNMENTS FOCUS ON

Financial

‘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. LUBRICANTSCATALYSTSRElNINGTECHNOLOGIESANDPIPELINES
(HURL) with the objective of establishing and operating OPERATIONS IS RECOGNISED AS ONE OF !SIAS lNEST )N THE
STATE
OF
THE
ARTENERGY
EFlCIENTNATURALGAS
BASEDFERTILISER AREAOFRElNINGTECHNOLOGYWHICHISDOMINATEDBYFOREIGN
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
MARGINBUSINESSITSFOCUSONOPERATIONALEFlCIENCYCOST
gas sector, with presence across the gas value chain in
India. It is the second biggest player in the R-LNG market
with massive plans to expand its gas infrastructure.
The Corporation has also been an early investor in the
renewable energy space, much ahead of its peers, and has
a growing portfolio.
Human capital is the backbone of any organisation.
The Corporation has over 33,000 employees, who run
its country-wide and overseas operations. Armed with
close to 7,000 millennials, the Corporation’s manpower
has strengths of both experience and youthful energy.
The Corporation has a strong culture of learning and
development, which is being further enriched through
initiatives such as E-Learning, partnerships with academia,
focus on women leadership etc. The robust HR policies
and a culture of learning have ensured that the Corporation
OPTIMISATION INTEGRATION AND DIVERSIlCATION HAVE BEEN
pivotal in ensuring its growth and competitiveness. Some
OF THE #ORPORATIONS RElNERIES ARE QUITE OLD AND HAVE
small capacities, while these have been augmented and
modernised from time to time; their sizes remain sub-
OPTIMALINTHEPRESENTCONTEXT4HERElNINGCAPACITYOFTHE
Corporation is spread out across the regions, necessitating
crude movement to the hinterland and not always resulting
in optimisation of crude mix that can be handled. Also,
in view of the mismatch between regional supply and
demand, the associated infrastructure of logistics has to
be created and continuously expanded. As the Corporation
expands into newer areas, building the requisite manpower
capability is a major issue that is being addressed. The
Corporation’s petrochemicals production base is at present
concentrated in the north of the country; with upcoming
has in-house expertise in all areas and the employees are
ABREASTOFTHELATESTDEVELOPMENTSINEACHlELD4HISHAS
enabled the Corporation to adopt cutting-edge technologies
in all areas of operations. The Corporation is recognised
as one of the most valued employers in the country with
PETROCHEMICALS PROJECTS AT ITS VARIOUS RElNERIES THIS
imbalance is getting addressed.
Opportunities, Challenges & Threats
India is set to lead the global energy story for the next 20-
continuous benchmarking to international standards and YEARSANDASAmAGSHIPENERGYCOMPANYTHERECOULDNOT
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
procuring crude oil from almost all the major oil suppliers
AND HAS A VERY WELL DIVERSIlED CRUDE SOURCING MIX 4HE
4.1.
Corporation has established a new re-engineered crude
procurement system for import of crude oil. New initiatives
HAVEENABLEDASIGNIlCANTREDUCTIONINPRICEVALIDITYPERIOD
from 12 hours to 2 hours. A trading desk has also been set
up to further leverage opportunities in the international
market.
The Corporation has automated all its operative retail
outlets and a majority of its terminals have been converted
into smart terminals. The Corporation recently become the
lRSTPUBLICSECTORCOMPANYANDTHELARGESTINSTALLATIONIN
India to migrate to SAP HANA technology. The Corporation
has a strong IT infrastructure and e-tendering and
e-procurements portals and a digital platform for CRM,
among other digital initiatives, have become a norm.
DElNED BY INNOVATION SUSTAINABILITY AND ENTREPRENEURIAL
SPIRIT
The Overall Context: Energy Growth & Energy Transition
For the global economy, the overall context is set by
the fact that the world needs more energy as the global
economy and population grow and countries become more
and more urbanised. Along with this come the related and
highly critical aspects of future energy growth and the
inclusiveness and environmental sustainability aspects of
future energy growth as enshrined in the United Nations
Sustainable Development Goals (SDGs). Clean energy
access for all, climate action and addressing air pollution
are critical challenges for the future growth of energy.
India is set to be at the forefront of the global energy
demand growth as it is expected to continue being the
 60th Annual Report 2018-19 113

fastest growing large economy over the long-term and to
become the most populated country by the middle of the
next decade, and see a massive scale-up in urbanisation.
About the
Report
Within the broader ambit of challenges & opportunities that
the energy sector faces, the twin forces of technology and
policy are shaping a ‘transition’ wherein renewable energy,
The gamut of challenges relating to future energy demand STORAGETECHNOLOGYSHALEREVOLUTION,.'ELECTRIlCATION

Chairman’s Desk
growth at the global level is nowhere more relevant than in ADVANCEDBIO FUELSDIGITALISATIONANDENERGYEFlCIENCYARE
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

Directors and others

Transition: Excellence Delivering Thrust on
Offering Total with a Digital Business Research &
Fuel Solutions Future Responsibly Technology

Board of
Fortifying Enhancing Building Strong Expanding
2ElNING Value Collaborations Global
Marketing Proposition & Partnerships Outreach

Directors’
Business through

Report
Integrated
Value Chains

Discussion & Analysis

 &ORTIFYING2ElNING-ARKETING"USINESS • Rising incomes and aspirations are set to unleash

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
incremental global oil demand, across countries and much
ahead of increment in Chinese oil demand between 2017
and 2040. Road freight, aviation and petrochemicals will
be the key propellers of India’s oil demand along with
passenger cars.
• High economic growth, rising share of manufacturing
and a modal mix tilted in favour of road will drive oil
demand in freight transportation.
• Indian aviation sector has been on a fast growth
trajectory and is set to continue adding one of the
 3AUBHAGYA is bringing in a
highest number of incremental passengers over the
next 15 years.
• Indian petrochemicals sector has been growing at
rates much faster than the global rates and is set to
 4HE#ORPORATIONHASPLANSINPLACETOEXPANDITSRElNING
chug at a rapid pace over the next 10-15 years.
VEHICULAREFlCIENCYTHESHEERMOMENTUMOFGROWTHIS
set to keep oil demand from passenger cars growing
in India.
Business
Another major demand driver for oil demand is the rural
economy. Rural energy consumption in India has been
way below the urban levels and is also highly dominated
by usage of traditional bio-energy, which comes with its
Report on Corporate
own costs on health, time and overall well-being. The
policy thrust on bridging the energy divide through free
Governance
LPG connections- Pradhan Mantri Ujjwala Yojana, and
RURAL ELECTRIlCATION SCHEME
paradigm shift. Further, as rural incomes and prosperity
rise, vehicle ownership is set to rise and propel rural
transportation fuel demand.
Statements
Financial
capacity ahead of demand. The Corporation is expanding
 114 Indian Oil Corporation Limited 2nd Integrated Annual Report

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

4.2.2. Alignment with Transition: Offering Total Fuel Solutions FORTHEWHOLECOUNTRY4HE#ORPORATIONSRElNERIESONBOTH

east and west coast are already in readiness for supplying
Despite the assurance of growth in downstream oil in
MARPOL (0.5% Sulphur) bunkering fuel. Further, the
India, alignment with the imperatives of energy transition
PRODUCTPATTERNOFRElNERIESWHICHHASALREADYMADETHE
is integral to the strategy. The Corporation has made
shift towards cleaner transportation fuels, will be shifting
timely investments for meeting regulatory requirements
towards cleaner fuels in other POL product categories and
pertaining to fuel quality be it Euro norms or MARPOL.
where demand is secure such as naphtha, jet fuel, LSFO
)NDIAN/ILRElNERIESLASTYEARSTARTEDSUPPLYING"3 6)FUELS
ANDAVENUESSUCHAS0ETCOKEGASSIlCATIONFORMAKINGTHE
to address the air quality concerns in the National Capital
PRODUCTPROlLEGREENERAREUNDERACTIVECONSIDERATION
Territory and are gearing up to meeting the 2020 timeline
 60th Annual Report 2018-19 115

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

Directors and others

G
LN

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,

Discussion & Analysis

#OMPRESSED"IOGAS#"' ,IQUElED.ATURAL'AS,.' BIO
FUELS INTEGRATION OF RElNERY PROCESSES WITH BIO
FUEL PRODUCTION
and selective regional bans on fuels such as petcoke and fuel
oil are invigorating these forces. In the passenger transport fuel
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
space, PNG is already emerging as a major fuel in a growing
number of Indian cities and in the industrial segment, electricity
and gas are increasingly becoming popular options as regulatory
pressure for clean fuels increases.
The Corporation, as a downstream player with a trusted and well
accepted brand presence, has embraced a strategy of providing
total fuel solutions to its commercial customers. The future retail
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
is there), LNG, CBG, and vehicle-charging facilities. This model
would be especially applicable to urban centres and upcoming
smart cities in the country.
• Bio-fuels is a space the Corporation is gearing up with
great zest emboldened by the renewed policy thrust on
modern bioenergy. Traditional bioenergy provides for more
than 20% of the country’s energy needs, mainly at the end
of marginalised consumers. Transforming this to modern
along with R&D in 2-G ethanol and 3-G ethanol, is also
Management’s
being worked upon.
current petroleum fuel demand with Compressed Biogas
(CBG). The Government’s Sustainable Alternative Towards
Responsibility Report
Affordable Transportation (SATAT) scheme which targets
setting up of 5000 CBG plants over the next few years
has given an impetus to this sector. The Corporation is one
Business
of the leading partners in the programme and is working
enthusiastically in realising the potential of a green, clean
and rural economy-friendly fuel. Report on Corporate
oil majors and the Corporation has also been investing
Governance
and building its natural gas portfolio. The decarbonisation
avenue provided by gas coupled with its easier access
through the LNG boom makes it an appropriate choice
as the energy transition progresses. Post the 9th & 10th
CGD (City Gas Distribution) rounds, the Corporation is
scaling up its presence in the CGD sector in a major way.
Statements
Financial
Besides, plans are afoot to grow its LNG terminal capacity
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
beginning of the Corporation making inroads in to the
erstwhile gas-deprived southern sector of the country. The
Corporation has been working on creating avenues for gas
demand and has been working on promoting LNG as a
transportation fuel in the country.
• The Corporation has been an early investor in wind and
solar power among Indian downstream companies. Further
investments coupled with continued R&D in Hydrogen,
fuel cells, waste-to-energy and bio-fuels are integral to its
downstream vision.
• Besides, the growth potential and global momentum for
the electric battery technologies has made it a compelling
choice for many oil majors and IndianOil too is keen on
The Corporation’s downstream oil business faces
continuing challenges in the form of low margins and is
INmUENCEDBYMYRIADFACTORSRANGINGFROMmUCTUATIONSIN
crude and product prices, crude and product inventory
levels, yield patterns, capacity utilisation, supply risks,
geo-political uncertainty, and an array of product market
variables such as seasonality of demand, pricing and
taxation, among others. In this context, the thrust of the
Corporation has been to diversify its crude supply, using
cheaper heavy crude varieties, making operations energy
ANDRESOURCEEFlCIENTANDAUTOMATINGITSPROCESSES
 4HE#ORPORATIONSQUESTFOREFlCIENTOPERATIONSISGETTING
further emboldened by the ongoing digital revolution-
the frontiers of technology armed by big data analytics,
entering in this space.
4.2.3. Enhancing Value Proposition through Integrated Value
Chains
In the 1990s, in conjunction with the opening up of
the Indian economy and seeing the value in integrated
operations of the global oil majors, the Corporation set
off on its integration journey. The integration drive of the
Corporation has today become more relevant than ever.
The great collapse of oil prices in 2014-15 and the
low oil prices in the last quarter of 2018 exhibited the
merits of downstream integration for the global oil majors.
For the Corporation, with asset concentration in the
downstream business, the endeavour has been to integrate
upstream business in its value chain. The Corporation has
judiciously built an upstream portfolio consisting of assets
in different stages of exploration, appraisal, development
and production within India and abroad. The Corporation
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
PARTICIPATING IN THE )NDIAN AND INTERNATIONAL LICENCING
bidding rounds and bidding for prospective exploratory
blocks, either alone or in consortium with experienced
)NDIANFOREIGN%0COMPANIES
The Corporation’s petrochemicals business has been
CONTRIBUTING CLOSE TO   OF ITS PROlTS WITH LESS THAN
4% share in its top-line. It is a major cushion to the
#ORPORATIONS LOW
MARGIN RElNING BUSINESS 4HE HIGH
growth potential of petrochemicals in the Indian market,
coupled with the hedge it provides to cyclical performance
and better returns, make it a compelling strategic choice
FOR FUTURE INVESTMENTS 4HE #ORPORATIONS *6 RElNERY ON
the west coast will have an integrated petrochemicals
complex. Besides, three petrochemicals projects are under
IMPLEMENTATIONATTHE#ORPORATIONS0ARADIP2ElNERYAND
a number of others are in the pipeline and would be spread
ACROSSTHE#ORPORATIONSRElNERYNETWORK
ARTIlCIAL INTELLIGENCE !262 CLOUD COMPUTING BLOCK
chain, Internet of Things, etc. The Corporation has started
deploying these digital technologies and is exploring
their applications in predictive maintenance, real-time
integrated data, drones for surveillance among others,
which can reduce costs, enhance productivity and increase
reliability and safety of operations.
Another, value proposition of digitalisation is on the
customer experience front of the downstream business.
India has witnessed e-commerce, digital payments, shared
mobility and changing market dynamics in a short span
OF TIME 4HE #ORPORATION HAS BEEN AMONG THE lRST TO
adopt digital payment systems in India. The Corporation’s
automation drive and mobile applications have been
enhancing customer experience and satisfaction. Going
ahead, digitalisation technologies such as big data and
analytics will provide the Corporation with the much
needed agility to sense customer preferences.
In today’s environment of fast-moving technological
changes, partnerships between government, private
and public sector enterprises, start-ups and technology
companies have become imperative across businesses.
As the market place demands entry into new arenas and
uncharted territories, it is best to work in partnership and
leverage the synergies between the partners.
The Corporation has forged alliances and is on a constant
lookout for alliances based on synergistic value creation.
These partnerships have enabled and are enabling our
endeavours in areas such exploration & production,
advanced bio-fuels, compressed biogas, petrochemicals,
gas infrastructure, electric mobility and many others.
The Corporation views start-ups as an emerging force that
can drive innovation and competitive advantage. In line
with this, the Corporation has set up a start-up fund and is
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
customer retention, among many others.
In addition to this, as a Central Public Sector Enterprise,
the Corporation shares values and responsibilities along
with other CPSEs. The Corporation has been partnering
with other CPSEs for upstream oil & gas assets in global
and domestic bidding rounds and acquisitions of cross-
country gas pipelines, CGD networks and fertilisers,
among others. The Corporation is also keenly looking at
avenues of collaboration with other CPSEs for collective
growth and nation-building.
4.2.6. Delivering Business Responsibly / Responsible Business
The Corporation is committed to complying with all
environmental compliance norms and regulations in its
operations and set new industry standards. The Corporation
is persistently working in making its operations greener
and reducing its carbon and water footprints. Recently, the
Corporation has begun a plastic neutrality initiative under
which it is exploring opportunities for creating a value
chain for plastics recycling.
 4HE#ORPORATIONSRElNERIESAREBIGENERGYCONSUMERSAND
ITHASBEENWORKINGINMAKINGTHESEMOREENERGYEFlCIENT
through various ENCON measures and other measures
SUCHASINTEGRATIONOFSMALLERUNITSINOLDERRElNERIESINTO
result in economies of scale and provide it with advantage
to be competitive in the global arena. In particular, in
Chairman’s Desk
the upstream space, the Corporation is keen on strategic
partnerships with leading International Oil Companies
From the
 .ATIONAL /IL #OMPANIES TO BRING MORE SYNERGY )NTENSE
competition in the upstream sector has favoured the
companies with strong networking and partnership
capabilities in the highly volatile upstream eco-system.
IndianOil at a
In downstream business space, non-OECD economies will
be leading centres for oil demand growth as incomes and
Glance
prosperity rise. The Corporation is increasingly looking at
markets in SAARC, ASEAN, MENA regions and Africa to
scale up its global footprint and make inroads into the
global markets to realise its vision.
Description of
4.2.8. Continued Thrust on Research & Technology
Capitals
 4ECHNOLOGY IS DElNING THE PATH FORWARD FOR THE ENERGY
sector and thrust on research is imperative today for any
energy company. The Corporation has a well developed
Directors and others
AND RENOWNED RESEARCH SETUP )N THE AREA OF RElNING
technology, which is dominated by foreign technology
suppliers, the Corporation has reached a stage where
Board of
a number of technologies developed by it are getting
COMMERCIALISED 7HILE RElNING AND LUBRICANT TECHNOLOGY
have been the focus since inception, the Corporation has
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 LINEWITHITSSTRATEGYOFINTEGRATEDVALUECHAINSDIVERSIlED

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.

Discussion & Analysis

national gas grid expands.
In the coming years the thrust areas for the Corporation’s
4.2.7. Expanding Global Outreach

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!%-AURITIUSITREALISESTHATSIGNIlCANTSTRIDESNEED
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

,EVERAGINGTECHNOLOGY)NDIAN/ILINTRODUCEDAPIONEERINGCONCEPTOF3MART4ERMINALSWITHACENTRALISEDAUTOMATEDSYSTEMATITSSUPPLYPOINTSTHATTAKES

CAREOFALLCOREOPERATIONSTHUSENABLINGMANPOWERTOFOCUSONCRITICALMAINTENANCEANDSAFETY RELATEDSUPPORT
 118 Indian Oil Corporation Limited 2nd Integrated Annual Report

5. Risks & Concerns Corporation recognises that risk is an integral component

of business and is committed to managing the risk in
There is an increasing recognition globally of the value
a proactive and effective manner. The enterprise risk
that can be added by a strong risk management framework
management framework at IndianOil is spearheaded by a
integrated into strategic and capital planning which
Risk Management Committee of the Board that ensures
provides insight into decision-making. A strong risk
that the risk management activities are undertaken as per
management function allows threats to be managed and
THE POLICY 2ISK /WNERS FROM ALL DIVISIONSDEPARTMENTS
opportunities to be captured across every unit and level of
IDENTIFY AND ASSESS THE RISKS IN THEIR RESPECTIVE AREAS
the enterprise. Developing a risk management framework
units and report it to Risk Management Compliance
is an ongoing process that involves strategic and ongoing
Board (RMCB), which comprises senior executives across
SETTINGRISKIDENTIlCATIONRISKASSESSMENTRISKMONITORING
and risk incidence procedure.
The risk governance structure at IndianOil is aligned to
leading practices and regulatory guidelines. In its endeavour
to attain sustainable growth, the Corporation constantly
scans its external and internal business environment. The
DIVISIONSDEPARTMENTS2-#"EVALUATESTHERISKSREPORTED
and provides an enterprise-wide view of key risks within
the organisation to the Risk Management Committee of
the Board. The dynamic risk landscape presents a unique
challenge to the Corporation, which it is committed to
MANAGESTRATEGICALLY&OLLOWINGARETHERISKSASIDENTIlED
by the Corporation:

Risks Ledger *

High Medium Low

Risk
§ Threat to market share due to
competition – Petroleum
§ Erosion in refining margins
§ Cost and time overruns in
projects
§ Lack of adequate infrastructure
impacting operational cost &
timely supply of products:
LPG/ATF/Exports
§ Equity/Asset investment in
producing E&P assets not
yielding the desired returns
Risk
§ Threat to market share in
petrochemicals
§ Data leakage: Compromise of
operational data and intellectual
property
§ International compliance risk for
overseas JVs & subsidiaries: Non-
compliance to with international
laws & regulations
§ Investments in Subsidiaries and
JVs not resulting in desired returns
§ Physical security risk:
Unauthorised access with motive
for interruption of services,
physical damage to infrastructure
& people, and theft of assets
Risk
§ Unplanned shutdown of refinery
during peak demand
§ Pilferages in oil & gas cross
country pipelines
§ Impact on inventories due to
crude/product price fluctuation
§ Loss of input tax credit due to
complexities arising out of dual
tax compliances in the GST
regime
§ Threat of alternative fuels
§ Industrial relations risk-Labour
unrest
§ Non-recovery/delays in recovery
of outstanding dues

§ Brand value risk § Exposure to borrowings and

foreign exchange fluctuations
§ Government policies / PNGRB
decisions impacting profitability § Loss of expert manpower due to
and ability to do business competitive job market

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

Directors and others

Revenue from Operations (Segmentwise)
Petroleum 576,088 481,168 94,920

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)

Discussion & Analysis

/THER5N ALLOCABLE%XPENDITURE)NCOME (1,607) (672) (935)

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 !TTHEBEGINNINGOFTHEYEARCRUDEOILPRICESWEREABOUTBBL
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-3CRACKSWHICHWEREABOUT BBLBECAME
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

GROSS REFINERY MARGIN ($/BBL)

Reported Normalised Singapore
11.0
10.2

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

!SCANBESEENTHE3INGAPOREBENCHMARKFORRElNINGMARGINFELL INTERNAL CONTROL SYSTEMS

SIGNIlCANTLYDURINGTHEYEARONACCOUNTOFLOWERSPREADBETWEEN
Internal Control Systems include a set of rules, policies, and
international prices of petroleum products and crude. IndianOil’s
procedures an organisation implements to provide direction,
CURRENTPRICERElNINGMARGINNORMALISED HASMOVEDINTANDEM
INCREASE EFlCIENCY AND STRENGTHEN ADHERENCE TO POLICIES 4HE
with international margins. The inventory holding is higher on
Corporation has well-established internal control systems to ensure
ACCOUNT OF INLAND RElNERIES DUE TO WHICH IN mUCTUATING CRUDE
SMOOTHANDEFlCIENTCONDUCTOFITSBUSINESS4HE#ORPORATIONHAS
PRICES SCENARIO INVENTORY GAINLOSSES BECOMES SIGNIlCANT AND
greater volatility is seen in the reported margins.
The ratio of Current Assets to Current Liabilities continues to be
above 1 and the Debt Equity ratio was at 0.79 in the current year
as against 0.53 in the previous year. This is mainly on account
of higher receivables for Government subsidies and increase
trade receivables from DGS&D department. IndianOil maintains a
healthy interest coverage of more than 8 times and debt coverage
of 4 times. The Inventory holding period is about 43 days and the
AVERAGECOLLECTIONPERIODISDAYS)NDIAN/ILHASPAIDPROPOSED
laid down various policies as well as detailed manuals, which
cover almost all aspects of the business. The internal processes
and policies are reviewed from time to time and revision is carried
out to align with the changing business needs. Organisation
level controls have been established to ensure that management
directives pertaining to the entire entity are carried out in an
effective manner. Operational level controls, anti-fraud controls
and IT general controls have also been put in place to ensure that
BUSINESSOPERATIONSARECARRIEDOUTEFlCIENTLYANDEFFECTIVELYAND
CHANCESOFERRORFRAUDSAREMINIMISED4HE#ORPORATIONHASPUTIN
a dividend of ` CROREFORTHElNANCIALYEAR
 AND place adequate internal controls, which are commensurate with
maintained a dividend payout of above 50% in that current year its operations.
ALSO$ETAILEDlNANCIALINDICATORSANDRATIOSFORTHELASTlVEYEARS
The Corporation has an independent Internal Audit Department,
have been incorporated in the Annual Report in a separate section
which is headed by an Executive Director, who reports to the
-“Performance at a Glance.”
#HAIRMAN 4HE )NTERNAL !UDIT $EPARTMENT COMPRISES OFlCERS
Group Financial Performance from Finance and Technical functions. The audit assignments
are carried out as per the Annual Audit Programme approved by
The Revenue from Operations for the Group was at ` 6,17,243
the Chairman and the Audit Committee. Internal Audit carries
crore during the year 2018-19 as compared to ` 5,15,542 crore
out extensive audits throughout the year covering each and every
IN THE PREVIOUS YEAR AND .ET 0ROlT WAS AT ` 17,377 crore as
aspect of the business. The Statutory Auditors are also required to
compared to ` 22,189 crore in the previous year. Increase in group
issue the Independent Auditor’s Report on the Internal Financial
PROlTISMAINLYCONTRIBUTEDBY)/#3INGAPORE0TE,TD3UBSIDIARY
Controls over Financial Reporting for the Corporation under Clause
#OMPANY  4HE DETAILED PROlT WALKTHROUGH FROM STANDALONE TO
(i) of Sub-Section 3 of Section 143 of the Companies Act, 2013.
group is provided in Note 46 to Consolidated Financial Statements.
The report issued thereupon has been attached along with the
standalone and consolidated Financial Statements respectively.
The Audit Committee calls upon Internal Auditors and Statutory
 60th Annual Report 2018-19 121

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)NNOVATION0ASSION and 4RUST. The HR systems and practices
of the Corporation focus on diversity and inclusion in all initiatives
to build a cohesive workforce. The challenges surrounding the
present business scenario can be best mitigated by a workforce that
is motivated, adaptive to change, innovative and fast in learning.
Learning forms an integral part of the growth and enrichment of
the workforce. With focus on aligning various HR initiatives with
Strategic Corporate Vision, many new initiatives were undertaken
aimed at making the employees ‘future-ready’. An enabling
environment has been created for employees to enhance their
domain knowledge and thus, maintain their expertise in respective
areas. Integrated HR practices through focussed recruitment,
career path, learning and development have contributed towards
maintaining the future-readiness of the workforce. HR Facilitator
initiative was launched across the organisation during the year,
with the objective of expeditiously resolving HR-related queries of
the employees through a single-window concept.
The Corporation has adopted innovative learning & development
interventions like Competency-based Learning apart from the
regular programmes for upgrading functional skills for developing
its human resources. Initiatives such as e-Learning were
introduced during the year and avenues for higher education
have been provided to employees in collaboration with reputed
management and technical institutes of the country. The
Corporation has a structured and robust succession planning
FRAMEWORK FOR IDENTIlCATION AND DEVELOPMENT OF THE LEADERSHIP
pipeline. IndianOil has not only groomed several visionary leaders
who have led & transformed the Corporation over the years but also
proved to be a nursery for grooming leaders for both public and
private sectors.
The employees of IndianOil are passionate about their responsibility
towards the society at large. The engagement and motivation of the
employees is always benchmarked with national and international
ready for the challenges faced by the Corporation due to changes
in business environment, technology, competition, regulations,
etc. This has been made possible by sharing the changes in
IndianOil at a
business environment, consequent changes required in strategy
and business models of the Corporation, resultant impact on
Glance
current business and people along with future plans with the
collectives and inviting suggestions, views from them through
periodic structured communication meetings with the collectives.
The management and the collectives have mutual respect for each
Description of
other’s perspectives and regular structured meetings are held to
discuss and deliberate on issues like productivity, welfare and
Capitals
the need to build a responsive and responsible organisation. The
collectives have always steadfastly supported the management in
overcoming any external challenges faced by the Corporation. The
Directors and others
employee strength of the Corporation as on 31st March 2019 was
33,498, which comprises 17,704 executives and 15,794 non-
Board of
executives.
OTHER INFORMATION
The details regarding the Corporation’s CSR programmes,
environment protection & conservation initiatives, technology
absorption & adoption efforts, forays into renewable energy and
Directors’
foreign exchange conservation, etc., are provided in the Directors’
Report
Report and annexure thereto.
Discussion & Analysis
CAUTIONARY STATEMENT
Management’s
The information and Statements in the Management’s Discussion
& Analysis regarding the objectives, expectations or anticipations
may be forward looking within the meaning of applicable securities,
laws and regulations. The actual results may differ materially from
the expectations. The various critical factors that could influence
THEEXPECTATIONS4HEVARIOUSCRITICALFACTORSTHATCOULDINmUENCE
Responsibility Report
the operations of the Corporation include global and domestic
demand and supply conditions affecting selling price of products,
input availability and prices, changes in Government regulations/
INPUTAVAILABILITYANDPRICESCHANGESIN'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

BUSINESS RESPONSIBILITY REPORT

SECTION-A : GENERAL INFORMATION ABOUT THE COMPANY
1. Corporate Identity Number (CIN) : L23201MH1959G0I011388
2. Name of the Company : Indian Oil Corporation Limited
3. Registered Address : Indian Oil Corporation Limited, IndianOil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai-400051
4. Website : www.iocl.com
5. Email Id : investors@indianoil.in
6. Financial Year Reported : 2018-19
7. Sector(s) that the Company is engaged in (industrial activity code-wise):)NDIAN/ILISENGAGEDINTHEBUSINESSOFRElNINGAND
marketing of petroleum products. It is also engaged in the business of Exploration & Production, Petrochemicals, Natural Gas
AND !LTERNATIVE %NERGY 4HE CODE NUMBERS OF GROUP CLASS AND SUB CLASS AS ASSIGNED BY .ATIONAL )NDUSTRIAL #LASSIlCATION
Ministry of Statistics and Programme Implementation are as under:

Group Class Sub Class Description

111 1110 %XTRACTION OF CRUDE PETROLEUM AND NATURAL GAS ;INCLUDING LIQUEFACTIONRE GASIlCATION OF
natural gas for purposes of transport and the production, at the mining site, of hydrocarbons
FROMOILORGASlELD=
11102 Onshore extraction of petroleum
11104 Onshore extraction of natural gas
232 2320 -ANUFACTUREOFRElNEDPETROLEUMPRODUCTS
23201 Production of liquid or gaseous fuels, illuminating oils, lubricating oils or greases or other
products from crude petroleum or bituminous mineral
23202 -ANUFACTUREOFPARAFlNWAX
23203 Bottling of LPG
23209 -ANUFACTUREOFOTHERPETROLEUMPRODUCTSNOTELSEWHERECLASSIlEDINCLUDESMANUFACTUREOF
petroleum jelly, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, petroleum
coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from
BITUMINOUSMINERALS-ANUFACTUREOFCANDLESISCLASSIlEDIN
241 2413 Manufacture of plastics in primary forms and of synthetic rubber
24131 Manufacture of synthetic rubber in primary forms
401 4010 Production, collection and distribution of electricity
401 4010 40105 Generation and transmission of electricity: other power plants using conventional fuels (e.g.,
gas-based)
401 4010  Generation of solar energy
401 4010 40108 Generation of electricity from other non-conventional sources
402 4020 40200 Manufacture of gas; distribution of gaseous fuels through mains
452 4520 45203 Construction and maintenance of roads, rail-beds, bridges, tunnels, pipelines, rope-ways,
ports, harbours and runways, etc.
505 5050 50500 2ETAILSALEOFAUTOMOTIVEFUEL;INCLUDESTHEACTIVITYOFPETROLlLLINGSTATIONS4HISACTIVITYIS
often combined with sales of lubricating products, cleaning and all other kinds of products
for motor vehicles. If the main object, however, is the sale of automotive fuel or lubricants,
THEYREMAINCLASSIlEDHERE
511 5110 51102 Commission agents dealing in wood, paper, skin, leather and fur, fuel, petroleum products,
chemicals, perfumery and cosmetics, glass, minerals, ores and metals
514 5141 51410 Wholesale of solid, liquid and gaseous fuels and related products
   Transport via pipelines [Includes transport of gases, liquids, slurry and other commodities
via pipelines. Included are the incidental activities like operation of pump stations and
MAINTENANCEOFTHEPIPELINE=
731 7310 73100 2ESEARCHAND$EVELOPMENTINTHElELDOFFUELSLUBRICANTSRElNERYPROCESSESTECHNOLOGIES
catalyst, alternative fuels, petrochemicals, biotechnology, nano-technology etc.
 3OURCEHTTPMOSPINICINSITESDEFAULTlLESECONOMIC CENSUSNIC?CODENIC??STRUC?DETAILPDF
Source: http://mospi.nic.in/sites/default/files/economic-census/nic_code/nic_2004_struc_detail.pdf
 60th Annual Report 2018-19 123

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

Directors and others

Pipeline Terminals 88
Retail Outlets (including Kisan Seva Kendra ROs) 27,702

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

Discussion & Analysis

Wind Power Plants 

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

 4OTALPROlTAFTERTAXES).2 : `CRORE

Governance

 4OTALSPENDINGON#ORPORATE3OCIAL2ESPONSIBILITY#32 ASPERCENTAGEOFPROlTAFTERTAXOFPROlTAFTERTAXDURINGTHEYEAR

2018-19
5. List of activities in which expenditure in 4 above has been incurred: As per the Board approved Sustainability & CSR Policy, CSR
projects are undertaken in various thrust areas, viz., drinking water, healthcare, sanitation, education, environment protection,
empowerment of women and other marginalised groups etc.
Report
The details of activities are provided in Annexure-III to the Directors’ Report.
Statements
Financial
 124 Indian Oil Corporation Limited 2nd Integrated Annual Report

SECTION-C : OTHER DETAILS

1. Does the Company have any Subsidiary Company/Companies:
IndianOil has one Indian operating subsidiary and seven overseas subsidiaries. The details of IndianOil’s subsidiary companies
are given in table below:
Name of Subsidiary Indian / Overseas Business
Chennai Petroleum Corporation Limited Indian Subsidiary 2ElNINGOFCRUDEOILANDMANUFACTUREOFPETROLEUM
(CPCL) petrochemical products
IndianOil (Mauritius) Limited, Mauritius Overseas Subsidiary Terminalling & retailing of petroleum products &
Aviation refuelling
Lanka IOC PLC Colombo, Sri Lanka Overseas Subsidiary Retailing, terminalling & bunkering of petroleum
products
IOC Middle East FZE Dubai, UAE Overseas Subsidiary Lube blending & marketing of lubricants & base oil
IOC Sweden AB, Sweden Overseas Subsidiary Investment company for E&P project in Venezuela
IOCL (USA) Inc., USA Overseas Subsidiary Participation in shale gas asset project
IndOil Global B.V., The Netherlands Overseas Subsidiary Investment company for integrated LNG project in
Canada and investment in E&P project, lower Zakum,
Abu Dhabi
IOCL Singapore Pte. Ltd., Singapore Overseas Subsidiary Investment company for E&P assets in Russia and
Oman and trading operations for procurement of crude
oil and import/export of petroleum products
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number
of such subsidiary company(s)
The Company’s operating Indian subsidiary, CPCL is a listed Mini-Ratna Company, which makes its own BR initiatives and
adheres to the operating guidelines as issued by the Government from time to time.
The overseas subsidiary companies undertake various activities as per the applicable laws of the local/native country.
3. Do any other entity/entities (e.g., suppliers, distributors etc.,) that the Company does business with, participate in the BR
initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than
60%]:
IndianOil’s suppliers, distributors, etc., are guided by the country’s labour, environment, safety, governance and other laws
related to Business Responsibility. IndianOil ensures that these entities comply with the national laws and guidelines. Further,
IndianOil also encourages suppliers, distributors, etc., to undertake various Business Responsibility initiatives pertaining to
social/employee/labour welfare and environment conservation. For example, IndianOil has promoted use of off-grid/localised
solar energy to replace conventional power sources in its retail network. Till March 31, 2019, 14,173 retail outlets have been
solarised, which is approximately 51% of IndianOil’s total retail outlets network.

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)

b) Details of the BR Head:

DIN Number (if applicable): NA
Name: Mr. Subodh Kumar
Designation: Executive Director (Alternate Energy and Sustainable Development)
Telephone number:  
E-mail id: ksubodh@indianoil.in
 60th Annual Report 2018-19 125

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?

Directors and others

Does the Company have in-house structure to Yes Yes Yes Yes Yes Yes Yes Yes Yes
implement the policy/policies?
Does the Company have a grievance redressal Yes Yes Yes Yes Yes Yes Yes Yes Yes

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:

Discussion & Analysis

Code of conduct for Directors and Senior Management HTTPSIOCLCOMDOWNLOAD#ODE?OF?#ONDUCT?FOR?"OARD?
https://iocl.com/download/Code_of_Conduct_for_Board_
Personnel -EMBERS??3-0PDF
Members_&_SMP.pdf

Code of conduct for prevention of Insider Trading
Whistle-Blower Policy
Sustainability & Corporate Social Responsibility Policy
Policy on Related Party Transactions
Management’s
HTTPSIOCLCOMDOWNLOAD)/#?)NSIDER?4RADING?#ODE?PDF
https://iocl.com/download/IOC_Insider_Trading_Code_2015.pdf
HTTPSIOCLCOM)NVESTOR#ENTER7HISTLE?"LOWER?POLICYPDF
https://iocl.com/InvestorCenter/Whistle_Blower_policy.pdf
HTTPSWWWIOCLCOM!BOUT5S)/#?3#32?0OLICY??PDF
https://www.iocl.com/AboutUs/IOC_S&CSR_Policy_07_2015.pdf
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.

SECTION-E : PRINCIPLEWISE REPLY

PRINCIPLE-1 : BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH ETHICS, TRANSPARENCY AND ACCOUNTABILITY.
 'OOD#ORPORATE'OVERNANCEPRACTICESENSUREETHICALANDEFlCIENTCONDUCTOFTHEAFFAIRSOFTHE#OMPANYANDALSOHELPINMAXIMISING
Good Corporate Governance practices ensure ethical and efficient conduct of the affairs of the Company and also help in maximising
value for all its stakeholders. IndianOil follows practices of Corporate Governance at all levels to ensure transparency, integrity and
accountability in its functioning.
 !WELL DElNEDPOLICYFRAMEWORKANDSTRONGSTRUCTURALSET UPISKEYTOEFFECTIVEIMPLEMENTATIONOFCORPORATEGOVERNANCEINITIATIVES
A well-defined policy framework and strong structural set-up is key to effective implementation of corporate governance initiatives.
IndianOil’s policies have been formulated after detailed deliberations amongst the concerned stakeholders. The policies are reviewed
from time to time to cater to the emerging and new business paradigms.
IndianOil constantly endeavours to inculcate ethical behaviour at all levels in the organisation in order to make it an essential
part of the work culture. “Care, Innovation, Passion and Trust” are its “Core Values”, which are the guiding philosophies for all its
transactions and activities.
Empowerment and Delegation of Authority (DoA) are essential components of the principle of governance. IndianOil has a well
structured and evolved system of “Delegation of Authority” and “Financial Concurrence”, which are hallmarks of a “mature and
responsible” organisation.
In an effort to enhance transparency, fairness and competitiveness at all working levels, IndianOil adopted and implemented the
Integrity Pact (IP) Programme, e-tendering for procurement of goods and services (https://iocletenders.gov.in/nicgep/app), opened
ITSOPERATIONSTOPUBLICQUERIESTHROUGH24)2IGHTTO)NFORMATION SHAREDDETAILSOF0UBLIC)NFORMATION/FlCER0)/ 24)-ANUAL
its operations to public queries through RTI (Right to Information) / shared details of Public Information Officer (PIO) / RTI Manual,
etc., on the website (https://iocl.com/Talktous/right-to-information.aspx), provided a clear and publically available Citizen Charter
(https://iocl.com/Talktous/CitizensCharter.aspx) and provided an option for online application to the Company’s Vigilance Department
(https://iocl.com/VigilanceInquiry.aspx)
IndianOil has a structured grievance redressal mechanism in place to address all stakeholders’ grievances. For employees, the
Company has the Conduct, Discipline and Appeal (CDA) Rules and Whistle-Blower Policy, to guide employee conduct and ensure
transparency and accountability within the Company.
Principle-1 : Questions
1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/No. Does it extend to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others.
Yes, the policy related to ethics, bribery and corruption covers only the Company. IndianOil’s Group Companies/Joint Venture
Companies are separate legal entities having their own policies and procedures.
 60th Annual Report 2018-19 127

About the
Report
 (OWMANYSTAKEHOLDERCOMPLAINTSHAVEBEENRECEIVEDINTHEPASTlNANCIALYEARANDWHATPERCENTAGEWASSATISFACTORILYRESOLVED
by the management? If so, provide details thereof, in about 50 words or so.

Stakeholder No of complaints No of complaint % Resolved Remarks

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

Directors and others

Cryogenics 55 55
Explosives 1 1

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.
(ENCEWHILE)NDIAN/ILPURSUESDIVERSIlCATIONINTONATURALGASANDRENEWABLEENERGYTHE#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
EFlCIENCYWATERCONSERVATIONRENEWABLEENERGYTREEPLANTATIONBUFFERZONECREATION ANDIMPROVEDWASTEMANAGEMENT Report on Corporate

 0RODUCTITSUSEANDSAFETY RELATEDDATAISPROVIDEDTOCUSTOMERSFORSAFERANDEFlCIENTUTILISATION%MPLOYEESANDNEARBYCOMMUNITIES

Governance

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/ILBALANCESITSPRODUCTSSOTHATTHEYMATCHUPTOCUSTOMERREQUIREMENTSFORQUALITYEFlCIENTANDLOW
emission fuels and maintain wide-scale availability and affordability. While all the Company’s product offerings are designed
KEEPINGINMINDSOCIALCONCERNSREQUIREMENTSTHEFOLLOWINGPRODUCTSSERVICESARESPECIlCALLYDESIGNEDKEEPINGINMINDTHE
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)NDIAIEPradhan Mantri Ujjwala Yojana, IndianOil has released over 3.34 crore
,0'CONNECTIONSTO"0,FAMILIESSINCEITSLAUNCHIN-AY4HEOBJECTIVEOFTHESCHEMEISTOPROVIDECLEANCOOKING
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!LSOFORMEETINGITSREQUIREMENTSFOROTHERINPUTMATERIALS)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?

Directors and others

IndianOil has taken steps for implementation of the Public Procurement Policy of the Government of India for procurement from
Micro-Small Enterprises (MSE). Against the target of 25 per cent procurement from MSE, the actual procurement of IndianOil

Board of
DURINGTHEYEAR WASPERCENTlGUREEXCLUDESPROCUREMENTOFCRUDEOILPETROLEUMPRODUCTSNATURALGAS 
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.

Discussion & Analysis

• During the year, 72 vendor development programmes were conducted to develop small and medium enterprises, including

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
INCOOLINGTOWERSlREWATERHEADERSANDHORTICULTUREETC$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.

PRINCIPLE-3 : BUSINESSES SHOULD PROMOTE THE WELLBEING OF ALL EMPLOYEES

With focus on aligning the Company’s various HR initiatives with the strategic Corporate Vision, many employee-centric initiatives
were undertaken, aimed at both - employee engagement and making the Company’s people ‘future-ready’.
The focus remains on hiring the best for IndianOil. The Company’s approach to workforce is based on the fundamentals of fostering
diversity by offering equal opportunity to all employees without any discrimination. IndianOil does not engage into or support direct
ORINDIRECTDISCRIMINATIONINRECRUITMENTPROMOTIONSALARYBENElTSTRAININGANDPOSTRETIREMENTBENElTSBASEDONCASTERELIGION
disability, gender, age, race, colour, marital status, etc.
All statutory provisions and policy guidelines are followed strictly without any discrimination while providing welfare facilities for
EMPLOYEESHEALTHEFlCIENCYlNANCIALWELLBEINGEMPLOYMENTSOCIALSTATUSGROWTHREMUNERATIONORDEVELOPMENTSATISFACTION
etc.
IndianOil also values everyone’s differences and encourages learning from each other regardless of background and believes in
bringing those diversities into the workplace to broaden experiences and knowledge.
The Company endeavours to provide a workplace that is free from discrimination and harassment, inculcate fair practices and
BEHAVIOURINTHEWORKPLACEEQUALACCESSTOBENElTSANDCONDITIONSEQUITABLEDISTRIBUTIONOFWORKLOADSANDSTRUCTUREDPROCESSESTO
deal with work-related complaints and grievances.
 3OMEOFTHESPECIlCINITIATIVESUNDERTAKENBYTHE#OMPANYAREI "ENCHMARKINGANDIMPROVINGTHE#OMPANYS(2PROCESSESIN
AREASLIKE3TAFlNG7ORK%NVIRONMENT0ERFORMANCE-ANAGEMENT4RAINING$EVELOPMENT#OMPETENCY!NALYSIS$EVELOPMENT
Workforce Planning, Participatory Culture, Mentoring, etc.; (ii) Structured technology-aided e-Learning platform catering to the
functional learning and development needs of employees; (iii) Women Leadership Development Programme; (iv) Employee health;
amongst others.
IndianOil offers good exposure to latest technology and training facilities to its employees, professional as well as personal security
INTERMSOFASECUREDJOBDElNEDCAREERPROGRESSIONGOODBENElTPOLICIESETC
Principle-3 : Questions
1. Please indicate the total number of employees:
33,498
2. Please indicate the total number of employees hired on temporary/contractual/casual basis.
 !SONPERSONSWEREENGAGEDAS#ONSULTANTS,IAISON/FlCERS$OCTORSONCONTRACTETCPERSONSAREWORKING
as casual labourers/temporary workers
In IndianOil, contract workers are engaged by the contractors within the provisions of Contract Labour (Regulation & Abolition)
Act, 1970. The number of contract labour working in different locations/units of IndianOil under various contractors as on
WAS)NDIAN/ILASAPRINCIPLEEMPLOYERENSURESTHATALLSTATUTORYREQUIREMENTSAREDULYCOMPLIEDWITH
3. Please indicate the number of permanent women employees.
 NUMBEROFPERMANENTWOMENEMPLOYEESSERVETHE#OMPANY
4. Please indicate the number of permanent employees with disabilities.
 TOTALPERMANENTEMPLOYEESAREWITHDISABILITIES
5. Do you have an employee association that is recognised by the management?
 9ES)NDIAN/ILHASRECOGNISEDUNIONSREPRESENTINGNON EXECUTIVEEMPLOYEESOFTHEORGANISATIONANDONE/FlCERSASSOCIATION
for executives
6. What percentage of your permanent employees are members of this recognised employee association?
 !BOUTOFTHEEMPLOYEESNON EXECUTIVESANDEXECUTIVES AREMEMBERSOFTHERECOGNISEDUNIONSANDOFlCERSASSOCIATION
 60th Annual Report 2018-19 131

About the
Report
7. Please indicate the number of complaints relating to child labor, forced labor, involuntary labor, sexual harassment in the last
lNANCIALYEARANDPENDINGASONTHEENDOFTHElNANCIALYEAR

Sr. No. Category .OOFCOMPLAINTSlLEDDURING No. of complaints pending as

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

Directors and others

communications across earmarked channels.
IndianOil has a vast number of avenues in place, to enable communication with stakeholders. These channels help in gaining

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

Discussion & Analysis

Committee at the Board level, which guides and monitors initiatives taken under Sustainability and CSR Policy of the Company.

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
 /UTOFTHEABOVEHASTHE#OMPANYIDENTIlEDTHEDISADVANTAGEDVULNERABLEMARGINALIZEDSTAKEHOLDERS
 9ES4HE#OMPANYHASIDENTIlEDTHEDISADVANTAGEDVULNERABLEANDMARGINALIZEDSTAKEHOLDERS

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 5 : BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS

IndianOil is an equal opportunity employer and there is no discrimination among the employees on the basis of caste, tribe, religion
ORREGIONINEXTENDINGTHEVARIOUSWELFAREFACILITIESTOTAKECAREOFEMPLOYEESHEALTHEFlCIENCYlNANCIALWELL BEINGSOCIALSTATUS
satisfaction, employment, growth, remuneration or development, etc.
IndianOil is a fair employer and believes in diversity and inclusiveness that respects and promotes human rights, the commitment
for which has been laid out in its “Equal Opportunity Policy”. This policy aims at elucidating the Company’s commitment towards
providing equal employment opportunities without any discrimination on the grounds of disability, gender, caste, religion, race, state,
background, colour, etc., and maintaining a work environment that is free from harassment based on the above considerations.
The Company’s installations are monitored and reviewed periodically to ensure human rights compliance and a robust redressal
mechanism, accessible to all employees, has been structured to ensure grievance handling. Abiding by the provisions of the
Minimum Wages Act 1971, the minimum wages paid to the employees and contractors are revised periodically and the salary
PAIDTOEMPLOYEESOFALLCATEGORIESFULlLSALLNORMSOFTHE!CTASPRESCRIBEDBYTHE'OVERNMENTOF)NDIA4HEREISA:ERO4OLERANCE
Policy towards sexual harassment at workplace and a stringent policy in this regard has been implemented across all locations and
installations. All reported cases of sexual harassment are inquired into by a Complaint Committee.
All contracts have laid-down terms and conditions (under General Conditions of Contract) for the Company’s vendors and suppliers
instructing them to comply with the human rights aspects. Though the terms and conditions of engagement between the contractor
and the labour are governed by respective contract, IndianOil, being the principal employer, ensures adherence to the provisions of
EPF & MP Act, 1952/ESI Act 1948 covering social security aspects like PF, ESI, etc. All contractual labour engaged are governed
by the Contract Labour (Regulation and Abolition) Act, 1970.
 !LLVENDORSANDSUPPLIERSSUBMITAWRITTENDECLARATIONCONlRMINGTHATTHEYHAVENOTENGAGEDCHILDLABOURATHISHERFACILITIESAND
any industry deploying child labour is discouraged from doing so. No form of forced or compulsory labour is supported by IndianOil.
Principle-5 : Questions
1. Does the policy of the Company on human rights cover only the Company or extend to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/Others?
IndianOil’s Group Companies/Joint Venture Companies are separate legal entities having their own policies and procedure.
However, IndianOil has ‘Equal Opportunity Policy’ in place and its employees posted in Group/Joint Ventures, etc., are also
covered under the policy.
 (OWMANYSTAKEHOLDERCOMPLAINTSHAVEBEENRECEIVEDINTHEPASTlNANCIALYEARANDWHATPERCENTWASSATISFACTORILYRESOLVEDBY
the management?
Please refer to the response to Question no.-2 under Principle-1.

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
WASTEFOOTPRINTOTHERHARMFULEMISSIONSANDEFmUENTPROlLE3PECIlCEXTERNALAUDITSARECONDUCTEDTOARRIVEATMEASURESTOREDUCE
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
ENERGYEFlCIENCYRENEWABLEENERGYIMPROVEDPRODUCTEFlCIENCYTREEPLANTATIONGREENBUILDINGSWATERCONSERVATIONSUPPLYCHAIN
efficiency, etc., are undertaken. Further details on the Company’s initiatives and their benefits can be obtained from the Annual
EFlCIENCYETCAREUNDERTAKEN&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.
 9ESTHE#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!LSOIF9ES7HETHERANYENVIRONMENTALCOMPLIANCEREPORTISlLED
or so. Also, if Yes, Whether any environmental compliance report is filed?
 )NDIAN/ILHASREGISTERED#$-PROJECTS(OWEVERDUETOLOW#%2PRICESTHEREGISTRATIONOFALL#$-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 CLEANTECHNOLOGYENERGYEFlCIENCYRENEWABLEENERGYETC9.)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.

Directors and others

Yes. Details of the Company’s sustainability initiatives can be accessed at the following links:
•
• http://www.iocl.com/Aboutus/sustainability.aspx
•
• https://www.iocl.com/AboutUs/environment(GFA).aspx

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

Discussion & Analysis

The following three showcause/legal notices were pending as of 31.3.2019:

Management’s
• !COMPLAINTWASlLEDBYTHE3ARPANCH'RAM0ANCHAYAT3INGHPURA3ITHNA0ANIPATBEFORETHE.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'OVERNMENTWHICHGUIDETHEIRGROWTH
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:

Association National / International

Advertising Standards Council of India National
All India Industrial Gas Manufacturers Association National
All India Management Association National
Associated Chambers of Commerce and Industry of India National
Association of Business Communicators of India National
Confederation of Indian Industry National
Council of Indian Employers National
Federation of Indian Chambers of Commerce and Industry National
Federation of Indian Petroleum Industry National
Indian Auto LPG Coalition National
Indian Dairy Association National
Indian Institution of Industrial Engineering National
Indian LP Gas Industry Association National
Indian Society of Advertisers National
International Advertising Association National
National HRD Network National
Standing Conference of Public Enterprises National
Biodiesel Association of India (BDAI) National
India International collaborations (U21 Global Universitas, Singapore, IFP France, etc.) International
International Air Transport Association International
Transparency International India International
United Nations Global Compact International
World LP Gas Association, Paris International
World Economic Forum International
National Lubricating Grease Institute (NLGI) International
CIMAC International

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.

PRINCIPLE-8 : BUSINESSES SHOULD SUPPORT INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT

IndianOil, as a socially responsible corporate entity, understands the importance of developing & supporting an ecosystem that is
equitable, growth-oriented and sustainable in the long run. IndianOil believes that Corporate Social Responsibility (CSR) is the
continuing commitment to conduct business ethically and contribute to economic development, while improving the quality of life of
the local community and society at large. Enshrined in IndianOil’s vision is the commitment towards the society “… to help enrich
the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience...”.
IndianOil’s Sustainability & CSR vision is to operate its activities in providing energy solutions to its customers in a manner that is
EFlCIENTSAFEETHICALWHICHMINIMISESNEGATIVEIMPACTONENVIRONMENTANDENHANCESTHEQUALITYOFLIFEOFTHECOMMUNITYTOWARDS
sustaining a holistic business.
 60th Annual Report 2018-19 135

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
9ESTHE#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.

Directors and others

Yes. Impact Assessment is carried out for all new projects costing more than Rs. 50 lakh at a single location. As per the
Sustainability & CSR Policy, the assessment is carried out after completion of at least one year from the date of commissioning
of the activity or stabilisation of the activity, whichever is later. For continuing activities with investment of more than Rs. 50

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 WAS2SCROREWHICHCORRESPONDSTO
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.

Discussion & Analysis

Yes. For successful adoption of CSR projects by the community, the projects are designed and taken up only after consultation

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
SOMETIMESBENElCIARIESALSOCONTRIBUTEPARTOFTHECOSTOFTHEPROJECT!LSODURINGANDAFTERIMPLEMENTATIONCONSULTATIONS
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 WALLETONLINEETC
™ 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
BENElTOFCUSTOMERSREGARDINGTECHNICALSPECIlCATIONSANDRECOMMENDEDUSEOFTHEPRODUCTBEINGMARKETED
• 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#OMPANYREGARDINGUNFAIRTRADEPRACTICESIRRESPONSIBLEADVERTISINGANDORANTI
COMPETITIVEBEHAVIOURDURINGTHELASTlVEYEARSANDPENDINGASONENDOFlNANCIALYEAR)FSOPROVIDEDETAILSTHEREOFINABOUT
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
DATEDSETASIDETHEORDEROF##)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'TRANSPORTATIONARBITRARYPRICEBANDANDANTI COMPETITIVEMANDATORYUSEOFmEETLOYALTYCARDS TIEUPFORFUEL
REQUIREMENTSARBITRARYPREFERENCETO3TATE 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(ENCETHEMATTERWASDECIDEDINFAVOUROFTHE/-#S
without any adverse observation/penalties by the CCI.
IV 2ELIANCE)NDUSTRIES,IMITEDlLEDACOMPLAINTAGAINSTTHE/-#S.ATIONAL!VIATION#OMPANY)NDIA,IMITED.!#), BEFORE
THE##)WHEREINALLEGATIONSWEREMADEABOUTCARTELISATIONETCOFTENDERmOATEDBY.!#),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/RDERANAPPEALWASlLEDINTHE(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?

Directors and others

Yes, the Company carries out various customer satisfaction surveys at regular intervals.

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

REPORT ON CORPORATE GOVERNANCE

1. COMPANY’S PHILOSOPHY ON » Policy for determining Material Subsidiaries
» Policy for determination of Material / Price Sensitive
CORPORATE GOVERNANCE Information and Disclosure Obligations
IndianOil believes that good Corporate Governance practices not » Policy for Preservation of Documents
ONLY ENSURE ETHICAL AND EFlCIENT CONDUCT OF THE AFFAIRS OF THE
» Dividend Distribution Policy
Company in a transparent manner but also help in maximizing
value for all its stakeholders like shareholders, customers, » Human Resources Initiatives
employees, contractors, vendors and society at large. Good
Corporate Governance practices help in building an environment 2. BOARD OF DIRECTORS
OFTRUSTANDCONlDENCEAMONGALLTHECONSTITUENTS4HE#OMPANY
endeavours to uphold the principles and practices of Corporate (a) Composition of Board of Directors
Governance to ensure transparency, integrity and accountability 4HE"OARDOFTHE#OMPANYCOMPRISESOF%XECUTIVE7HOLE 4IME 
in its functioning which are vital to achieve its Vision of being the $IRECTORS .ON %XECUTIVE 0ART 4IME  'OVERNMENT .OMINEE
Energy of India and a Globally Admired Company. $IRECTORS AND .ON %XECUTIVE 0ART 4IME  )NDEPENDENT $IRECTORS
4HE )NDEPENDENT $IRECTORS ARE EMINENT PERSONS WITH PROVEN
4HE #OMPANY HAS SET HIGH STANDARDS OF ETHICAL AND RESPONSIBLE
RECORD IN DIVERSE AREAS LIKE BUSINESS LAW lNANCE ECONOMICS
conduct of business to create value for all stakeholders. For
administration, etc.
effective implementation of the Corporate Governance practices,
THE #OMPANY HAS A WELL DElNED POLICY FRAMEWORK INTER ALIA 4HETENUREOFTHE$IRECTORSAPPOINTEDONTHE"OARDISASUNDER
consisting of the following:
» 7HOLE4IME$IRECTORSAREAPPOINTEDFORAPERIODOFYEARSOR
» Code of Conduct for Directors and Senior Management their date of superannuation, whichever is earlier;
Personnel and their obligations
» 'OVERNMENT .OMINEE $IRECTORS ARE APPOINTED ON EX OFlCIO
» #ODE FOR 0REVENTION OF )NSIDER 4RADING IN THE 3ECURITIES OF basis during their tenure in Ministry of Petroleum & Natural
IndianOil 'AS-O0.' 
» Enterprise Risk Management Policy
» Independent Directors are appointed for a period of 3 years;
» Integrity Pact to enhance transparency in business
As on 31.03.19, the Board of the Company comprised of 17
» Whistle Blower Policy
$IRECTORS WHICH INCLUDED  %XECUTIVE $IRECTORS 7HOLE 4IME
» #ONDUCT$ISCIPLINEAND!PPEAL2ULESFOROFlCERS $IRECTORSINCLUDING#HAIRMAN 'OVERNMENT.OMINEE$IRECTORS
» Corporate Social Responsibility & Sustainable Development AND   )NDEPENDENT $IRECTORS 4HE COMPOSITION OF THE "OARD OF
Policy Directors as on 31.03.19 is given below:
» 0OLICYON2ELATED0ARTY4RANSACTIONS

Sl. Name Category Designation Date of Tenure (in years)

No. appointment as on 31.03.2019
1. Shri Sanjiv Singh Whole-time Director Chairman 01.07.14 
.OTE
 Shri A .K. Sharma Whole-time Director $IRECTOR&INANCE  4.30
.OTE
3. Shri G. K. Satish Whole-time Director $IRECTOR0LANNING"USINESS 01.09.16 
$EVELOPMENT
4. Dr. S. S. V. Ramakumar Whole-time Director $IRECTOR2ESEARCH$EVELOPMENT  
 Shri B. V. Rama Gopal Whole-time Director $IRECTOR2ElNERIES  1.13
6. Shri Ranjan Kumar Mohapatra Whole-time Director $IRECTOR(UMAN2ESOURCES  1.11
7. Shri Gurmeet Singh Whole-time Director $IRECTOR-ARKETING  0.68
8. Shri Akshay Kumar Singh Whole-time Director $IRECTOR0IPELINES 14.08.18 0.63
9. Smt. Sushmita Dasgupta Non-Executive Director Govt. Nominee Director  0.03
 60th Annual Report 2018-19 139

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  

Note 1: 3HRI3ANJIV3INGHWASAPPOINTEDAS$IRECTOR2ElNERIES ONANDBECAME#HAIRMANWEF

Note 2: 3HRI!+3HARMACEASEDTOBE$IRECTORUPONSUPERANNUATIONON0URSUANTTO-O0.'SDIRECTIVEDATED

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

Directors and others

#OMPANIES !CT  THE RULES NOTIlED THEREUNDER AS WELL AS AND THE FACILITY IS PROVIDED AS AND WHEN REQUESTED 4HE AGENDA
3%"),ISTING/BLIGATIONS$ISCLOSURE2EQUIREMENTS 2EGULATIONS papers are circulated to the Directors in advance before the
3%"),/$2 ANDAREINDEPENDENTOFTHE-ANAGEMENT meeting. However, certain exigent proposals are tabled at the

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.

Discussion & Analysis

OPERATIONAL AREAS OF THE #OMPANY LIKE 2ElNERIES 0IPELINES
4HE #OMPANY BEING A 'OVERNMENT #OMPANY ALL THE $IRECTORS Marketing, Petrochemicals, Gas and other Business Development

Management’s
on its board viz. Functional Directors, Government Directors ACTIVITIESASWELLASONMAJORPROJECTSlNANCIALHIGHLIGHTSETC4HE
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

OFTHE#OMPANYHASNOTIDENTIlEDANYSUCHCORESKILLSOREXPERTISE
OR COMPETENCE REQUIRED BY A $IRECTOR AS REQUIRED UNDER 3%")
,/$2 
Business
» Constitution of Board Committees with terms of reference.
» Minutes of meetings of Audit Committee and other Committees
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

» General notices / matters of interest of Directors. 4HE"OARD-INUTESAREPREPAREDPROMPTLYAFTERTHE"OARD-EETING

and circulated to all Directors for their comments, if any, and
» Periodic reports to the Board on :
THEREAFTER APPROVAL OF THE #HAIRMAN IS OBTAINED 4HE APPROVED
 4REASURY/PERATIONS minutes are then circulated to the concerned department / group
FOR IMPLEMENTATION !CTION 4AKEN 2EPORT ON THE DECISION OF THE
- Capital expenditure status
Board is obtained and submitted to the Board periodically.
- Risk Management
$ETAILSOFTHE"OARD-EETINGSHELDDURINGTHEYEAR ARE
- Secretarial reports as under:

- 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

- Progress report of E&P projects 8.  17 

9. 11.01.19 17 16
- Import of Crude Oil
10. 30.01.19 17 17
- Corporate Guarantees issued
11.  17 
- Minutes of Board Meeting of unlisted subsidiaries  19.03.19 16 16

(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
$). 

Shri G. K. Satish  Yes 4 - - -

$IRECTOR0LANNING"USINESS
$EVELOPMENT 
$). 
 60th Annual Report 2018-19 141

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 

Directors and others

$). 
Shri Akshay Kumar Singh3  Yes - - - -
$IRECTOR0IPELINES

Board of
$). 
Non-Executive Directors (Govt. nominees)
Shri Ashutosh Jindal  No - - - -
$). 
Smt Sushmita Dasgupta4 NA NA - - - -

Directors’
$). 

Report
Smt Urvashi Sadhwani  NA - - - -
$). 

Discussion & Analysis

3MT3USHMA2ATH4AISHETE6  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

Shri Sanjay Kapoor10  Yes - - - -

$). 
 142 Indian Oil Corporation Limited 2nd Integrated Annual Report

Remarks: (e) Succession Planning

1. Shri A. K. Sharma ceased to be Director upon superannuation 4HE #OMPANY BEING A 'OVERNMENT #OMPANY UNDER THE
from IndianOil on 31.01.19. Pursuant to MoP&NG’s directive administrative control of the Ministry of Petroleum & Natural Gas
DATED  3HRI ! + 3HARMA WAS RE
APPOINTED AS -O0.' THEPOWERTOAPPOINT$IRECTORSINCLUDING)NDEPENDENT
$IRECTOR&INANCE FORAPERIODOFMONTHSWEF
 3HRI 'URMEET 3INGH WAS INDUCTED ON THE "OARD WEF

3. Shri Akshay Kumar Singh was inducted on the Board w.e.f.
14.08.18.
4. Smt. Sushmita Dasgupta was inducted on the Board w.e.f.

 3MT5RVASHI3ADHWANICEASEDTOBE$IRECTORWEF
 3MT3USHMA2ATH4AISHETEWASINDUCTEDONTHE"OARDWEF
$IRECTORS  VESTS WITH THE 'OVERNMENT OF )NDIA (OWEVER THE
Company has put in place an orderly succession plan for grooming
of Senior Management Personnel.
3. COMMITTEES OF THE BOARD
I) Audit Committee
4HE !UDIT #OMMITTEE HAS BEEN CONSTITUTED IN LINE WITH THE
PROVISIONSOFREGULATIONOFTHE3%"),/$2 ANDTHEPROVISIONS
ANDCEASEDTOBE$IRECTORWEF
7. Smt. Indrani Kaushal was inducted on the Board w.e.f.
ANDCEASEDTOBE$IRECTORWEF
8. Shri Parindu K. Bhagat has been re-appointed as Independent
$IRECTORFORAPERIODOFONEYEARWEF
OF THE #OMPANIES !CT  AND THE RULES NOTIlED THEREUNDER
4HEMEMBERSOFTHE!UDIT#OMMITTEEHAVEREQUISITElNANCIALAND
management expertise.
4HE!UDIT#OMMITTEECOMPRISEDOFTHEFOLLOWINGMEMBERSASON
31.03.19:

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!CTASWELL
ASREGULATION READWITH0ART#OF3CHEDULE))OFTHE3%")
Note 2:4HE -EMBERSHIP  #HAIRMANSHIP OF #OMMITTEE IS
ALIAINCLUDETHEFOLLOWING
considered only for Audit Committee and Stakeholders’
Relationship Committee.
,/$2 WHICHINTER
» /VERSEEING THE #OMPANYS lNANCIAL REPORTING PROCESS AND
DISCLOSUREOFlNANCIALINFORMATIONTOENSURETHATTHElNANCIAL
Note 3: In case of cessation of Directorship, the details of STATEMENTSARECORRECTSUFlCIENTANDCREDIBLE
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
the company.
None of the Directors on the Board is a member of more than
#OMMITTEESOR#HAIRPERSONOFMORETHAN#OMMITTEESACROSS
all the listed companies in which they are a Director. All the
$IRECTORSHAVEMADEREQUISITEDISCLOSURESREGARDING$IRECTORSHIP
Committee position occupied by them in other companies.
A brief resume of the Directors, who are being re-appointed at the
lNANCIALSTATEMENTSAUDITORSREPORTALONGWITHRELATEDPARTY
transactions, if any, before submission to the Board.
» !PPROVAL OR ANY SUBSEQUENT MODIlCATION OF TRANSACTIONS OF
the Company with related parties.
» Review of matters to be included in Directors Responsibility
Statement that forms part of the Board Report.
» Reviewing with the management and statutory and internal
forthcoming Annual General Meeting, is given in the notice of the AUDITORSTHEADEQUACYOFINTERNALCONTROLSYSTEMS
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
» 4OEXAMINEDECIDEANDDEALWITHALLISSUESRELATINGTO%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

Directors and others

Shri Samirendra Chatterjee
WEF NA NA NA NA NA - Yes Yes Yes

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.

Discussion & Analysis

4HE-INUTESOFTHEMEETINGSOFTHE!UDIT#OMMITTEEARECIRCULATED  3HRI3ANJIV3INGH#HAIRMANOFTHECOMPANY  -EMBER
TO THE MEMBERS OF THE !UDIT #OMMITTEE 4HE APPROVED MINUTES 4HEATTENDANCEATTHEMEETINGSOF.OMINATION2EMUNERATION

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#OMPANYTHEAPPOINTMENTAND #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

PROMOTIONS TO 'RADE @) %XECUTIVE $IRECTOR  IE 3ENIOR

Financial

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

Shri Sanjiv Singh Chairman 36,66,904   

Shri A. K. Sharma $IRECTOR&INANCE    
Shri G. K. Satish $IRECTOR0"$  33,39,490 13,66,093 87,69,478
Dr. S. S. V. Ramakumar $IRECTOR2$  31,44,383 8,18,714 
Shri B. V. Rama Gopal $IRECTOR2ElNERIES 47,49,346  11,13,177 
Shri Ranjan Kumar Mohapatra $IRECTOR(2    
Shri Gurmeet Singh $IRECTOR-ARKETING 33,17,649   
WEF
Shri Akshay Kumar Singh $IRECTOR0IPELINES  -  
WEF
TOTAL 4,06,71,371 1,78,16,443 86,22,194 6,70,56,008

Note:
 0ERFORMANCE,INKED)NCENTIVESAREPAYABLETOTHE7HOLE TIME$IRECTORSASEMPLOYEESOFTHE#OMPANYASPERTHEPOLICYAPPLICABLETO
all executives of the Company.
 $URINGTHEYEARNO3TOCK/PTIONSWEREISSUEDBYTHE#OMPANYTO7HOLE TIME$IRECTORS
 4HETERMSOFAPPOINTMENTOFTHE7HOLE TIME$IRECTORSASISSUEDBYTHE'OVERNMENTOF)NDIAPROVIDESFORMONTHSNOTICEPERIODOR
salary in lieu thereof for severance of service.
 4HEREMUNERATIONDOESNOTINCLUDETHEIMPACTOFPROVISIONMADEONACTUARIALVALUATIONFORRETIREMENTBENElTSLONGTERMSCHEMES
ANDPROVISIONMADEDURINGTHEPERIODTOWARDS0OST2ETIREMENT"ENElTSASTHESAMEARENOTSEPARATELYASCERTAINABLEFORINDIVIDUAL
directors.
4HE)NDEPENDENT$IRECTORSARENOTPAIDANYREMUNERATIONEXCEPTSITTINGFEESOF2S PERMEETINGFORATTENDINGMEETINGSOFTHE
"OARDOR#OMMITTEESTHEREOF4HESITTINGFEESPAIDDURINGTHElNANCIALYEAR ISASUNDER

Name of the Director 3ITTING&EESD

Shri Parindu K. Bhagat 
Shri Vinoo Mathur 
Shri Samirendra Chatterjee 6,40,000
Shri C. R. Biswal 6,80,000
Dr. Jagdish Kishwan 10,00,000
Shri Sankar Chakraborti 8,40,000
Shri D. S. Shekhawat 
Shri Vivek Rae 
Shri Sanjay Kapoor 6,00,000
TOTAL 68,40,000

Note: 4HERE WERE NO OTHER MATERIALLY SIGNIlCANT PECUNIARY

relationships or transactions of the Independent Directors vis-à-vis
the Company.
 60th Annual Report 2018-19 145

About the
Report
The Government Nominee Directors are not paid any remuneration, 4HEATTENDANCEATTHEMEETINGOFTHE3TAKEHOLDERS2ELATIONSHIP
sitting fees, etc. #OMMITTEEHELDDURING ISGIVENBELOW

Shareholding of Directors as on 31.03.19 Name of the Director Meeting held on

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 DURINGTHEYEARREQUESTSFORCHANGEOFADDRESSRECORDINGOF

Directors and others

9. Shri Ashutosh Jindal -
Nominee Director NOMINATIONISSUEOFDUPLICATESHARECERTIlCATESDIVIDENDWARRANT
Smt. Sushmita Government ETCWERERECEIVEDOUTOFWHICHREQUESTSWEREPENDINGASON
10. -
Dasgupta Nominee Director ANDTHESAMEWERESUBSEQUENTLYADDRESSED

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

Discussion & Analysis

by its corporate vision of caring for environment and community.
Independent
 Dr. Jagdish Kishwan - 4HE COMPANY BELIEVES THAT #32 IS ITS CONTINUING COMMITMENT
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$EVELOPMENT#32
III) Stakeholders’ Relationship Committee 3$ #OMMITTEETORECOMMENDMONITORANDADMINISTERACTIVITIES

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

 3HRI0ARINDU"HAGAT)NDEPENDENT$IRECTOR #HAIRMAN

4HE #OMMITTEE COMPRISED OF THE FOLLOWING MEMBERS AS ON
31.03.19:  3HRI3ANKAR#HAKRABORTI)NDEPENDENT$IRECTOR -EMBER

 3HRI3ANKAR#HAKRABORTI)NDEPENDENT$IRECTOR #HAIRMAN  3HRI!+3HARMA$IRECTOR&INANCE  -EMBER

 3HRI$33HEKHAWAT)NDEPENDENT$IRECTOR -EMBER  3HRI'+3ATISH$IRECTOR0"$  -EMBER

Statements

 3HRI!+3HARMA$IRECTOR&INANCE  -EMBER  3HRI2ANJAN+UMAR-OHAPATRA$IRECTOR(2  -EMBER

Financial

 3HRI2ANJAN+UMAR-OHAPATRA$IRECTOR(2  -EMBER  3HRI'URMEET3INGH$IRECTOR-ARKETING  -EMBER

 146 Indian Oil Corporation Limited 2nd Integrated Annual Report

4HEATTENDANCEATTHEMEETINGSOFTHE#323$#OMMITTEEHELD V) Risk Management Committee

DURINGTHEYEAR ISGIVENBELOW
4HE #OMPANY HAS FORMED A 2ISK -ANAGEMENT #OMMITTEE TO
Name Meeting held on review risk management process involving risk assessment and
minimisation procedure as well as to approve the derivative
26.06.18 28.08.18 13.12.18 29.01.19 23.02.19 19.03.19
transactions above USD 100 million on ‘mark to market’ basis.
Shri Parindu Bhagat Yes Yes Yes Yes Yes Yes
4HE #OMMITTEE COMPRISED OF THE FOLLOWING MEMBERS AS ON
Shri Sankar Chakraborti Yes Yes Yes Yes Yes Yes
31.03.19:
 3HRI3ANJIV3INGH#HAIRMAN #HAIRMANOFTHE#OMMITTEE
Shri A. K. Sharma Yes Yes Yes Yes Yes Yes
 3HRI!+3HARMA$IRECTOR&INANCE  -EMBER
Shri G. K. Satish Yes Yes Yes Yes Yes Yes  3HRI'+3ATISH$IRECTOR0"$  -EMBER
 3HRI"62AMA'OPAL$IRECTOR2ElNERIES  -EMBER
Shri Ranjan Kumar Yes Yes Yes Yes Yes Yes
Mohapatra  3HRI'URMEET3INGH$IRECTOR-ARKETING  -EMBER
4HEATTENDANCEATTHEMEETINGOFTHE2ISK-ANAGEMENT#OMMITTEE
Shri Gurmeet Singh NA Yes Yes Yes - Yes HELDDURING ISGIVENBELOW

Name of the Director Meeting held on

4HE #OMPANY 3ECRETARY ACTS AS THE 3ECRETARY OF THE #32  3$ 03.10.18
Committee. Shri Sanjiv Singh Yes
4HE#320OLICYISHOSTEDONTHEWEBSITEOFTHECOMPANYONTHELINK
The CSR Policy is hosted on the website of the company on the link Shri A. K. Sharma Yes
HTTPSIOCLCOMABOUTUS)OC?3#32?POLICYPDF The
https://iocl.com/aboutus/Ioc_S&CSR_policy.pdf. 4HE #32
CSR 2EPORT
Report, Shri G. K. Satish Yes
AS required
as REQUIRED under
UNDER the
THE Companies
#OMPANIES !CT
Act, 
2013 FOR
for THE
the YEAR
year ENDED
ended Shri B. V. Rama Gopal Yes
31.03.19 is annexed to the Director’s Report.
Shri Gurmeet Singh -

VI) Other Board Committees:

In addition to the above committees, the Board has delegated certain powers to various committees with distinct roles and responsibilities.
4HECOMPOSITIONOFSUCHCOMMITTEESASONISASUNDER

Sl. Name of Role and Responsibilities Members

No. Committee

1. Project 4OAPPRAISEPROJECTSCOSTINGDCROREAND  )NDEPENDENT$IRECTORS

Evaluation above before the Projects are submitted to - 1 Government Nominee Director
Committee the Board for approval.
 $IRECTOR&INANCE
4HECOMMITTEEISHEADEDBYAN)NDEPENDENT$IRECTOR
 Marketing 4OEVOLVETHESTRATEGIESPOLICIESGUIDELINES  )NDEPENDENT$IRECTORS
Strategies & and take decisions on all matters - 1 Government Nominee Director
Information relating to marketing activities of the
 $IRECTOR2ElNERIES
4ECHNOLOGY Company including revival of dealerships
Oversight / distributorships and to oversee the  $IRECTOR0"$
Committee IMPLEMENTATIONOF)43TRATEGIESOFTHE  $IRECTOR&INANCE
Company.  $IRECTOR-ARKETING
4HECOMMITTEEISHEADEDBYAN)NDEPENDENT$IRECTOR
3. Deleasing of 4OCONSIDER$ELEASINGOF#OMPANYLEASED - Chairman
Immoveable mATSACCOMMODATIONIMMOVEABLE  $IRECTOR&INANCE
Properties properties.
 $IRECTOR(2
Committee
 $IRECTOR-ARKETING
- 1 Government Nominee Director
4HECOMMITTEEISHEADEDBYTHE#HAIRMANOFTHE#OMPANY
 60th Annual Report 2018-19 147

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

Directors and others

Policy of the Company. - Co-opt additional Director, if any.
4HECOMMITTEEISHEADEDBYAN)NDEPENDENT$IRECTOR

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

Discussion & Analysis

4HE !NNUAL 'ENERAL -EETING !'-  OF THE #OMPANY IS HELD AT No approval of shareholders was sought by means of 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!CTAND3%"),/$2 
400 018 -UMBAIn 400 018
Governance

 b. Materially significant related party transactions

No. of 1 1 1 4HE #OMPANY HAS A POLICY ON h-ATERIALITY OF 2ELATED 0ARTY
Special 4RANSACTIONSANDDEALINGWITH2ELATED0ARTY4RANSACTIONSvPOLICY
Resolutions ON204 WHEREINTHETHRESHOLDLIMITSFORRELATEDPARTYTRANSACTIONS
Passed AREALSOPROVIDED4HESAMEHASBEENHOSTEDONTHEWEBSITEOFTHE
Company and can be accessed at the following link:
Statements
Financial

No Extraordinary General Meeting of the shareholders was held https://iocl.com/InvestorCenter/Policy_on_Related_Party_

DURINGTHEYEAR  4RANSACTIONSPDF
Transactions.pdf
 148 Indian Oil Corporation Limited 2nd Integrated Annual Report

!SPERTHEPOLICYON204ALLRELATEDPARTYTRANSACTIONSAREAPPROVED 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!CT3%"),/$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

d. Details of non-compliance during the last three g. Integrity Pact

years 4HE#OMPANYHASSIGNEDA-EMORANDUMOF5NDERSTANDING-O5 
4HERE WERE NO CASES OF NON
COMPLIANCE BY THE #OMPANY ON ANY WITH4RANSPARENCY)NTERNATIONAL)NDIA4)) INFORIMPLEMENTING
matter related to capital markets during the last three years and )NTEGRITY 0ACT )0  0ROGRAM FOCUSED ON ENHANCING TRANSPARENCY
no penalties / strictures were enforced on the Company by Stock PROBITYEQUITYANDCOMPETITIVENESSINITSPROCUREMENTPROCESS
Exchanges / SEBI or any other statutory authority on any matter
related to capital market.
However, during the year, the Company received notices from NSE
as well as BSE regarding non-compliance with the provision of
2EG OFTHE3%"),/$2 FORTHEQUARTERENDED3EPTEMBER
0RESENTLY  )NDEPENDENT %XTERNAL -ONITORS )%-S  HAVE BEEN
NOMINATEDBYTHE#ENTRAL6IGILANCE#OMMISSION#6# TOMONITOR
the implementation of IP in all tenders, of the threshold value of
Rs. 10 Crore and above, across all Divisions of the Company.
$URING THE YEAR  MEETINGS OF )%-S WERE HELD "ASED ON THE
$ECEMBER-ARCHANDIMPOSITIONOFMONETARY above threshold value, 444 tenders came under the purview of
PENALTYFORNOTHAVING)NDEPENDENT$IRECTORSONTHE"OARD )0 DURING THE YEAR 
 AGAINST WHICH  COMPLAINTS WERE
)NRESPONSETOTHENOTICETHE#OMPANYWROTETOTHE%XCHANGES 
clarifying that the shortfall in Independent Directors was not due
to any negligence / default by the Company as appointment of
Directors is done by the Government of India. In view thereof the
#OMPANYHASREQUESTEDTHE%XCHANGESTOWAIVE
OFFTHEPENALTIES
e. Vigil Mechanism and Whistle-Blower Policy
4HE #OMPANY PROMOTES @ETHICAL BEHAVIOUR IN ALL ITS BUSINESS
activities and has put in place a mechanism for reporting illegal
OR UNETHICAL BEHAVIOUR 4HE #OMPANY HAS LAID DOWN PROCEDURES
and internal controls like Delegation of Authority, Standard
received which were referred to the IEMs and deliberated.
h. Relationship between Directors
None of the Directors is inter-se related to other Directors of the
Company.
i. Details of familiarisation programmes imparted
to Independent Directors
The details of familiarisation programmes imparted to Independent
4HEDETAILSOFFAMILIARISATIONPROGRAMMESIMPARTEDTO)NDEPENDENT
Directors are hosted on the website of the Company and can be
/PERATING 0ROCEDURES 3/0S  #ONDUCT $ISCIPLINE AND !PPEAL accessed at the link https://iocl.com/download/IDFP.pdf
2ULESFOREMPLOYEESETC4HE6IGILANCE$EPARTMENTWHICHFORMS
an important part of the vigil mechanism, undertakes participative, j. Outstanding GDRs / ADRs / Warrants or any
preventive and punitive action for establishing effective internal Convertible instruments:
control systems and procedures for minimising systemic failures, 4HE#OMPANYHASNOTISSUEDANY'$2S!$2S7ARRANTSORANY
WITHGREATEREMPHASISONPARTICIPATIVEANDPREVENTIVEASPECTS4HE Convertible instruments.
 60th Annual Report 2018-19 149

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
SUCHASVARIATIONINRElNINGMARGINSIETHEDIFFERENCEBETWEEN 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,.'FORMARKETINGETC -ATERIALS3TOCKIN0ROCESS&INISHED'OODSAND3TOCKIN4RADEAS
4HE#OMPANYASSESSESTHESERISKSANDBASEDONPOTENTIALOFTHESE ONWASDCRORE4HE2ElNERYMARGINSFOR
risks being realized, appropriate hedging positions are undertaken THE&INANCIAL9EAR WASDCROREAPPROX

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

Directors and others

towards the particular terms towards the derivatives
commodity# particular commodity
Domestic market International market Total

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

Discussion & Analysis

Ï)MPACTFOREACHVARIATIONINEXPOSUREHASBEENGIVENFORTHEPARTICULARCOMMODITY

c. Commodity risks faced by the entity during the year and how
they have been managed:
4HE PRIMARY COMMODITY RISK FACED BY THE COMPANY IS THE RISK
Management’s
m. Fees paid to Statutory Auditors:
4HESTATUTORYAUDITORSOFTHECOMPANYWEREPAIDATOTALAMOUNTOF
D4.34 crore for all the services rendered by them to the Company.

Responsibility Report
AROUNDPRICEMOVEMENTIN#RUDEOILRElNEDPRODUCTSAND,.'
Any adverse movement in commodity prices may affect the margin.
Similarly, any favorable movement in prices can also allow margins
TORISE(EDGINGACTIVITIESARETARGETEDATlXINGAPRICEFORREDUCING
UNCERTAINTIESVOLATILITIESINFUTURECASHmOWS
l. Disclosures in relation to Sexual Harassment of
Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013
A detailed disclosure regarding compliance with Sexual
n. Quarterly Compliance Report on Corporate
Governance
Business
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
Report on Corporate
same is also hosted on the website of the company www.iocl.com.
Governance
o. Compliance with the mandatory requirements of
SEBI (LODR)
(ARASSMENTOF7OMENAT7ORKPLACE0REVENTION0ROHIBITIONAND 4HE#OMPANYHASCOMPLIEDWITHALLTHEMANDATORYREQUIREMENTS
2EDRESSAL !CTALONGWITHSTATUSOFCOMPLAINTSRECEIVEDAND
disposed off during the year is provided in the Directors Report.
SPECIlED IN REGULATIONS  TO  AND REGULATION  B  TO
 I OFTHE3%"),/$2 EXCEPTINRESPECTOFCOMPOSITIONOF
THE"OARD OF$IRECTORSWITH REGARD TO AT LEAST )NDEPENDENT
Statements
Financial
 150 Indian Oil Corporation Limited 2nd Integrated Annual Report

$IRECTORSDURINGTHEPERIODTOANDATLEASTONE c. Website
WOMANDIRECTORFORTHEPERIODTO
4HE#OMPANYSWEBSITEWWWIOCLCOMPROVIDESASEPARATESECTION
TO  4HE COMPANY BEING A 'OVERNMENT #OMPANY
for investors where relevant shareholders information is available.
under the administrative control of the Ministry of Petroleum &
4HE!NNUAL2EPORTOFTHE#OMPANYISALSOHOSTEDONTHE#OMPANY
.ATURAL'AS-O0.' THEPOWERTOAPPOINT$IRECTORSINCLUDING
)NDEPENDENT$IRECTORS VESTSWITHTHE'OVERNMENTOF)NDIA
4HECOMPANYISFOLLOWINGUPWITHTHE-O0.'ONREGULARBASISTO
APPOINTREQUISITENUMBEROF$IRECTORSTOENSURECOMPLIANCEWITH
3%"),/$2 
p. Adoption of the non-mandatory requirements of
SEBI (LODR)
4HE #OMPANY HAS NOT ADOPTED ANY DISCRETIONARY REQUIREMENTS
website www.iocl.com.
d. Annual Report
Annual Report is circulated to shareholders and others entitled
THERETO4HE-ANAGEMENT$ISCUSSIONAND!NALYSIS-$! 2EPORT
and Corporate Governance Report form part of the Annual Report.
e. Chairman’s Speech at AGM
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.

q. Guidelines on Corporate Governance by f. Webcast of AGM proceedings

Department of Public Enterprise (DPE)
WAYLIVEWEBCASTOFTHEPROCEEDINGSOF
4HE COMPANY IS COMPLYING WITH ALL THE REQUIREMENTS OF THE
DPE Guidelines on Corporate Governance except with regard to
COMPOSITIONOFTHE"OARDASSTATEDINPARAO ABOVE
4HE DETAILS OF COMPLIANCE WITH THE 0RESIDENTIAL $IRECTIVES HAVE
been provided in the Directors’ Report.
4HE#OMPANYPROVIDEDONE
THE!'-HELDON
g. Investor Service Cell
)NVESTOR 3ERVICE #ELL EXISTS AT THE 2EGISTERED /FlCE AT -UMBAI
ANDTHE#ORPORATE/FlCEAT.EW$ELHITOADDRESSTHEGRIEVANCES
 QUERIES OF SHAREHOLDERS  DEBENTURE HOLDERS 4O FACILITATE THE
No items of expenditure have been debited in books of accounts, INVESTORSTORAISEQUERIESGRIEVANCESTHROUGHELECTRONICMODETHE
which are not for the purpose of business. No expenses, which are company has created a separate e-mail ID "investors@indianoil.
of personal nature, have been incurred for the Board of Directors INÑ+ARVY&INTECH0VT,TD2EGISTRAR4RANSFER!GENT24! HAVE
and top management. OFlCESACROSSTHECOUNTRYWHEREFROMTHEQUERIESGRIEVANCESOF
the investors are also addressed.
4HEREGULARADMINISTRATIVEANDOFlCEEXPENSEWEREOFTOTAL
EXPENSE DURING 
 AS AGAINST  DURING THE PREVIOUS h. Green initiative – reaching important
year. communication to shareholders through email
4HE PROVISIONS OF THE #OMPANIES !CT  AND RULES MADE
7. MEANS OF COMMUNICATION there under permit paperless communication by allowing service
of all documents in electronic mode. Accordingly, the company
a. Financial Results WOULDSENDTHECOPYOFTHE!NNUAL2EPORTFORTHEYEAR

4HEQUARTERLYAUDITEDUNAUDITEDlNANCIALRESULTSAREANNOUNCED along with the notice convening the AGM through email to those
WITHIN THE TIME PRESCRIBED UNDER THE 3%") ,/$2  4HE RESULTS SHAREHOLDERSWHOHAVEREGISTEREDTHEIREMAILIDWITHTHE$024!
ARE PUBLISHED IN LEADING NEWSPAPERS LIKE 4IMES OF )NDIA )NDIAN and have not opted for physical copy of the Annual Report.
%XPRESS%CONOMIC4IMES"USINESS3TANDARD4HE(INDU"USINESS
,INEAND-AHARASHTRA4IMES-ARATHI.EWSPAPER 4HElNANCIAL
www.iocl.com.
RESULTSAREALSOHOSTEDON#OMPANYSWEBSITEWWWIOCLCOM4HE 8. GENERAL SHAREHOLDER INFORMATION
#OMPANYISSUESNEWSRELEASESONSIGNIlCANTCORPORATEDECISIONS
ACTIVITIESANDPOSTSTHEMONITSWEBSITEASWELLASNOTIlESTHE (a) Annual General Meeting:
stock exchanges as and when deemed necessary.
$ATE4IMEAND 7EDNESDAYAT!-AT.EHRU
b. News Releases Venue of the Centre Auditorium,
/FlCIAL PRESS RELEASES DETAILED PRESENTATIONS MADE TO MEDIA Annual General Discovery of India Building, Worli,
analysts, institutional investors, etc. are displayed on the Meeting -UMBAIn
Company’s website www.iocl.com.
 60th Annual Report 2018-19 151

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

Directors and others

During the year Company has paid Interim Dividend of DPER of Equity Shares
share and D PER SHARE IN THE MONTH OF $ECEMBER   at NSDL / CDSL : INE 242A01010

Board of
-ARCHRESPECTIVELY
)NADDITIONAlNALDIVIDENDOFD
PERSHARE RECOMMENDED
by the Board of Directors, if approved at the AGM, shall be paid to
the eligible shareholders within the stipulated 30 days period after
the AGM as provided under the Companies Act.
AREGIVENBELOW
(j) Stock Market Data:
4HEMARKETPRICEANDVOLUMEOFTHE#OMPANYS%QUITY3HARES
FACEVALUEDEACH TRADEDONTHE"3%.3%DURINGTHE
lNANCIALYEAR

Directors’
Report
BSE NSE
Month
High (D) Low (D) Volume High (D) Low (D) Volume

Discussion & Analysis

!PRIL    181.30  

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

*ANUARY 139.40     

Governance

&EBRUARY 146.80   146.80  

-ARCH      40,18,73,437
Statements
Financial
 152 Indian Oil Corporation Limited 2nd Integrated Annual Report

(k) Stock Price Performance in comparison to broad- (l) Registrar & Transfer Agents (RTA) :
based indices: +ARVY#OMPUTERSHARE0VT,TD+#0, WASTHE2EGISTRAR4RANSFER
$URING 
 THE SHARE PRICE OF THE #OMPANY OPENED AT !GENTS24! OFTHE#OMPANY$URINGTHEYEARPURSUANTTOASCHEME
` 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,INCLUDINGALLTHELICENSESGOTTRANSFERRED
TO +&0, ON THE SAMETERMSAND CONDITIONS AS THOSE AVAILABLE TO
4HERELATIVECOMPARISONONBASEOF OFTHEMONTHLYCLOSING
price of the Company’s share vis-a-vis BSE SENSEX and NSE
.)&49DURING
ISGIVENBELOW
Relative Movement of IndianOil share closing price
+#0,WEFth.OVEMBER4HECHANGEINNAMEOFTHE24!
has been intimated to the Stock Exchanges and also updated on
THEWEBSITEOFTHE#OMPANY4HEADDRESSFORCORRESPONDENCEWITH
THE24!ISASGIVENBELOW
+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(OWEVERALLREQUESTSFOR
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

(o) Categories of Shareholders as on 31.03.19:

Description of
Capitals
Sl. Category Shareholders (Folios) Shares
No. No. % No. %

Directors and others

1. President of India 1 0.00  
 Governor of Gujarat 1 0.00 1,08,00,000 0.11
3. 'OVERNMENT#OMPANY/IL.ATURAL'AS#ORP,TD 1 0.00  

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

Discussion & Analysis

11. 4RUSTS 97   
 Investor Education & Protection Fund 1 0.00  0.03

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"UYBACKOF3HARESSHARESWERE

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 TOEQUITYSHARESCONSTITUTING
EXCHANGETRADEDFUNDCOMPRISINGOFSTOCKSMANAGEDBY)#)#) OFTHEPAID UPEQUITYSHARECAPITALOFthe company. Report on Corporate
0RUDENTIAL -UTUAL &UND   WHEREBY THE 0O) HOLDING REDUCED TO
IV /NTHE0O)DISINVESTEDEQUITYSHARESIN
 EQUITY SHARES CONSTITUTING  OF THE PAID
Governance

UPEQUITYSHARECAPITALOFTHECOMPANY FAVOUROF"HARAT%4&WHEREBYTHE0O)HOLDINGFURTHERREDUCED
TOEQUITYSHARESCONSTITUTINGOFTHEPAID
II /N  THE 0O) FURTHER DISINVESTED  UPEQUITYSHARECAPITALOFthe company.
EQUITY SHARES IN FAVOUR OF #03% %4& AN EXCHANGE TRADED FUND
COMPRISINGOFSTOCKSMANAGEDBY2ELIANCE.IPPON,IFE!SSET V /NTHE0O)FURTHERDISINVESTEDEQUITY
-ANAGEMENT #OMPANY  WHEREBY THE 0O) HOLDING REDUCED TO SHARESINFAVOUROF#03%%4&WHEREBYTHE0O)HOLDINGREDUCED
TOEQUITYSHARESCONSTITUTINGOFTHEPAID
Statements

 EQUITY SHARES CONSTITUTING  OF THE PAID

Financial

UPEQUITYSHARECAPITALOFTHECOMPANY UPEQUITYSHARECAPITALOFthe company.

 154 Indian Oil Corporation Limited 2nd Integrated Annual Report

(p) Top 10 shareholders as on 31.03.19:

Sl. No. Name No. of Shares % To Equity
1. President of India  
 /IL.ATURAL'AS#ORPORATION,IMITED  
3. ,IFE)NSURANCE#ORPORATIONOF)NDIA  
4. /IL)NDIA,IMITED  
 )/#3HARES4RUST  
6. #03%%4&  
7. )#)#)0RUDENTIAL%QUITY$EBT&UND  
8. ICICI Prudential Value Discovery Fund 4,16,46,898 
9. ICICI Prudential Blue Chip Fund  
10. 6ANGUARD4OTAL)NTERNATIONAL3TOCK)NDEX&UND 3,40,06,018 

(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:

Year Amount (D) Particulars No. of Shares

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:

Directors and others

Note: )NCOMPLIANCEWITH3%")CIRCULARDATED
In compliance with SEBI circular dated 20th!PRILON
April 2018 on Instrument Rating Agency Rating Outlook
“Strengthening the guidelines and raising industry standards for Senior Unsecured Debt Moody’s "AA Stable

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

Discussion & Analysis

THE#OMPANYHASlLEDTHEINFORMATIONASONTHELAST!'-DATEIE
the Company has filed the information as on the last AGM date i.e. Commercial Papers ICRA ;)#2!=! -
INTHEPRESCRIBEDFORMWITHTHE)%0&ANDALSOHOSTEDITON
29.08.18 in the prescribed form with the IEPF and also hosted it on

Management’s
Commercial Papers India Ratings ).$! -
Company’s website www.iocl.com.
3ECTION OFTHE#OMPANIES!CTREADWITHRULESMADE
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

hosted on the website of the Company www.iocl.com.

Financial
 156 Indian Oil Corporation Limited 2nd Integrated Annual Report

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To the Members of Indian Oil Corporation Limited
7EHAVEEXAMINEDTHECOMPLIANCEOFCONDITIONSOF#ORPORATE'OVERNANCEBY)NDIAN/IL#ORPORATION,IMITEDhTHE#OMPANYv FORTHEYEAR
ENDEDON-ARCHASSTIPULATEDINTHE3ECURITIESAND%XCHANGE"OARDOF)NDIA,ISTING/BLIGATIONSAND$ISCLOSURE2EQUIREMENTS 
2EGULATIONSASAMENDEDANDTHEGUIDELINESON#ORPORATE'OVERNANCEFOR#ENTRAL0UBLIC3ECTOR%NTERPRISESASENUNCIATEDBYTHE
$EPARTMENTOF0UBLIC%NTERPRISES$0% 
4HECOMPLIANCEOFTHECONDITIONSOF#ORPORATE'OVERNANCEISTHERESPONSIBILITYOFTHE-ANAGEMENT/UREXAMINATIONASCARRIEDOUTIN
accordance with the Guidance Note on Corporate Governance issued by the Institute of Chartered Accountants of India, was limited to
procedures and implementations thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance.
)TISNEITHERANAUDITNORANEXPRESSIONOFOPINIONONTHElNANCIALSTATEMENTSOFTHE#OMPANY
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied
WITHTHECONDITIONSOF#ORPORATE'OVERNANCEASSTIPULATEDINTHE3%"),ISTING/BLIGATIONSAND$ISCLOSURE2EQUIREMENTS 2EGULATIONS
ASWELLASTHE$0%'UIDELINESEXCEPTFORTHEFOLLOWING
A 4HE#OMPANYHASNOTCOMPLIEDWITHTHECONDITIONSWITHREGARDTOMINIMUMNUMBEROF)NDEPENDENT$IRECTORSINTHECOMPOSITIONOF
"OARDOF$IRECTORSFORTHEPERIODTO
B 4HE #OMPANY HAS NOT COMPLIED WITH THE CONDITIONS WITH REGARD TO APPOINTMENT OF WOMAN DIRECTOR FOR THE PERIOD  TO
TO
7EFURTHERSTATETHATSUCHCOMPLIANCEISNEITHERANASSURANCEASTOTHEFUTUREVIABILITYOFTHE#OMPANYNOROFTHEEFlCIENCYOREFFECTIVENESS
with which the Management has conducted the affairs of the Company

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)

Sd/ Sd/ Sd/ Sd/

(CA. Rohit Mehta) (CA. G. Sankar) (CA. Chandrakanta Prusty) (CA Vinod Kumar Singhi)
Partner Partner Partner Partner
M. No. 091382 M. No. 046050 M. No. 057318 M. No. 050051

Place : Mumbai
Date : 19th June 2019
 STANDALONE
FINANCIAL STATEMENTS
2018-19
 158 Indian Oil Corporation Limited 2nd Integrated Annual Report

INDEPENDENT AUDITORS’ REPORT

To
The Members of Indian Oil Corporation Limited
Report on the Audit of the Standalone Financial Statements
Opinion
7EHAVEAUDITEDTHEACCOMPANYINGSTANDALONElNANCIALSTATEMENTSOF)NDIAN/IL#ORPORATION,IMITEDhTHE#OMPANYv WHICHCOMPRISE
THE "ALANCE 3HEET AS AT -ARCH   THE 3TATEMENT OF 0ROlT AND ,OSS INCLUDING OTHER #OMPREHENSIVE )NCOME  3TATEMENT OF
#HANGESIN%QUITYAND3TATEMENTOF#ASH&LOWSFORTHEYEARTHENENDEDANDNOTESTOTHElNANCIALSTATEMENTSINCLUDINGASUMMARYOF
SIGNIlCANTACCOUNTINGPOLICIESANDOTHEREXPLANATORYINFORMATIONINWHICHAREINCORPORATEDTHERETURNSFORTHEYEARENDEDONTHATDATE
AUDITEDBYTHE"RANCH!UDITOROFTHE#OMPANYSONE"RANCHNAMELY2ESEARCH$EVELOPMENT2$ DIVISIONSITUATEDAT&ARIDABAD
(ARYANA)NDIA
)N OUR OPINION AND TO THE BEST OF OUR INFORMATION AND ACCORDING TO THE EXPLANATIONS GIVEN TO US THE AFORESAID STANDALONE lNANCIAL
STATEMENTSGIVETHEINFORMATIONREQUIREDBYTHE#OMPANIES!CTTHEh!CTv INTHEMANNERSOREQUIREDANDGIVEATRUEANDFAIRVIEW
INCONFORMITYWITHACCOUNTINGPRINCIPLESGENERALLYACCEPTEDIN)NDIAOFTHESTATEOFAFFAIRSOFTHE#OMPANYASAT-ARCHAND
PROlTTOTAL#OMPREHENSIVE)NCOMECHANGESINEQUITYANDITSCASHmOWSFORTHEYEARENDEDONTHATDATE
Basis for Opinion
7E CONDUCTED OUR AUDIT OF THE STANDALONE lNANCIAL STATEMENTS IN ACCORDANCE WITH THE 3TANDARDS ON !UDITING 3!S  SPECIlED UNDER
SECTION   OF !CT 3!S  /UR RESPONSIBILITIES UNDER THOSE 3TANDARDS ARE FURTHER DESCRIBED IN THE !UDITORS 2ESPONSIBILITIES FOR
THE!UDITOFTHElNANCIALSTATEMENTSSECTIONOFOURREPORT7EAREINDEPENDENTOFTHE#OMPANYINACCORDANCEWITHTHE#ODEOF%THICS
ISSUEDBYTHE)NSTITUTEOF#HARTERED!CCOUNTANTSOF)NDIAh)#!)v TOGETHERWITHTHEETHICALREQUIREMENTSTHATARERELEVANTTOOURAUDIT
OFTHESTANDALONElNANCIALSTATEMENTSUNDERTHEPROVISIONSOFTHE!CTANDTHE2ULESTHEREUNDERANDWEHAVEFULlLLEDOUROTHERETHICAL
RESPONSIBILITIESINACCORDANCEWITHTHESEREQUIREMENTSANDTHE)#!)S#ODEOF%THICS7EBELIEVETHATTHEAUDITEVIDENCEWEHAVEOBTAINED
ISSUFlCIENTANDAPPROPRIATETOPROVIDEABASISFOROUROPINIONONTHESTANDALONElNANCIALSTATEMENTS
Key Audit Matters
+EYAUDITMATTERSARETHOSEMATTERSTHATINOURPROFESSIONALJUDGMENTWEREOFMOSTSIGNIlCANCEINOURAUDITOFTHESTANDALONElNANCIAL
STATEMENTSOFTHECURRENTPERIOD4HESEMATTERSWEREADDRESSEDINTHECONTEXTOFOURAUDITOFTHESTANDALONElNANCIALSTATEMENTSASA
WHOLEANDINFORMINGOUROPINIONTHEREONANDWEDONOTPROVIDEASEPARATEOPINIONONTHESEMATTERS7EHAVEDETERMINEDTHEMATTERS
DESCRIBEDBELOWTOBETHEKEYAUDITMATTERSTOBECOMMUNICATEDINOURREPORT

Key Audit Matters Auditors’ response to Key Audit Matters

Property, Plant & Equipment and Intangible Assets
4HERE ARE AREAS WHERE MANAGEMENT JUDGEMENT IMPACTS THE 7E ASSESSED THE CONTROLS IN PLACE OVER THE lXED ASSET CYCLE
CARRYING VALUE OF PROPERTY PLANT AND EQUIPMENT INTANGIBLE EVALUATED THE APPROPRIATENESS OF CAPITALISATION PROCESS
ASSETS AND THEIR RESPECTIVE DEPRECIATIONAMORTISATION RATES PERFORMEDTESTSOFDETAILSONCOSTSCAPITALISEDTHETIMELINESSOF
4HESE INCLUDE THE DECISION TO CAPITALISE OR EXPENSE COSTS THE THECAPITALISATIONOFTHEASSETSANDTHEDE
RECOGNITIONCRITERIAFOR
ANNUAL ASSET LIFE REVIEW THE TIMELINESS OF THE CAPITALISATION OF
ASSETSANDTHEUSEOFMANAGEMENTASSUMPTIONSANDESTIMATES
FOR THE DETERMINATION OR THE MEASUREMENT AND RECOGNITION
CRITERIAFORASSETSRETIREDFROMACTIVEUSE$UETOTHEMATERIALITY
INTHECONTEXTOFTHEBALANCESHEETOFTHE#OMPANYANDTHELEVEL
ASSETS RETIRED FROM ACTIVE USE )N PERFORMING THESE PROCEDURES
WEREVIEWEDTHEJUDGEMENTSMADEBYMANAGEMENTINCLUDINGTHE
NATUREOFUNDERLYINGCOSTSCAPITALISEDDETERMINATIONOFREALIZABLE
VALUEOFTHEASSETSRETIREDFROMACTIVEUSETHEAPPROPRIATENESSOF
ASSETLIVESAPPLIEDINTHECALCULATIONOFDEPRECIATIONTHEUSEFUL
OFJUDGEMENTANDESTIMATESREQUIREDWECONSIDERTHISTOBEAS
AREAOFSIGNIlCANCE
LIVES OF ASSETS PRESCRIBED IN 3CHEDULE )) OF THE #OMPANIES !CT
ANDTHEUSEFULLIVESOFCERTAINASSETSASPERTHETECHNICAL
ASSESSMENT OF THE MANAGEMENT 7E HAVE OBSERVED THAT THE
MANAGEMENTHASREGULARLYREVIEWEDTHEAFORESAIDJUDGEMENTSAND
THEREARENOMATERIALCHANGES
 60th Annual Report 2018-19 159

About the
Report
Key Audit Matters Auditors’ response to Key Audit Matters
Capital Work-in-Progress

Chairman’s Desk
4HE#OMPANYISINTHEPROCESSOFEXECUTINGVARIOUSPROJECTSLIKE 7EPERFORMEDANUNDERSTANDINGANDEVALUATIONOFTHESYSTEMOF
EXPANSIONOFRElNERIESINSTALLATIONOFNEWPLANTSDEPOTS,0' INTERNALCONTROLOVERTHECAPITALWORKINPROGRESSWITHREFERENCETO
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#OMPANYTHISISCONSIDEREDTOBEANAREAWHICHHADTHE
ITSSTATEOFINTENDEDUSE
SIGNIlCANTEFFECTONTHEOVERALLAUDITSTRATEGYANDALLOCATIONOF

resources in planning and completing our audit
Provision for Direct Taxes
4HE#OMPANYHASUNCERTAINDIRECTTAXPOSITIONSINCLUDINGMATTERS
UNDERDISPUTEWHICHINVOLVESSIGNIlCANTJUDGMENTRELATINGTOTHE
POSSIBLEOUTCOMEOFTHESEDISPUTESINESTIMATIONOFTHEPROVISION
About IndianOil
/UR AUDIT PROCESS INVOLVED ASSESSMENT OF THE MANAGEMENTS
UNDERLYING ASSUMPTIONS IN ESTIMATING THE TAX PROVISION AS
CONlRMED BY THE #OMPANYS TAX CONSULTANTS  AND THE POSSIBLE
FORINCOMETAX"ECAUSEOFTHEJUDGEMENTREQUIREDTHEAREAISA 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

Directors and others

DISALLOWANCESASPERTHEPROVISIONSOFTHE)NCOME4AX!CT
Provisions and Contingent Liabilities

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
TOIDENTIFYLEGALANDTAXLITIGATIONSANDPENDINGADMINISTRATIVE
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

Discussion & Analysis

THE MATERIALITY OF SUCH LITIGATIONS AND THE COMPLEXITY OF THE RULINGSINSIMILARCASES
ASSESSMENTPROCESSTHEAREAISAKEYMATTERFOROURAUDIT

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
PRODUCTSARESTILLCOVEREDUNDERTHEOLDREGIMEVIZEXCISEDUTY
ANDVALUEADDEDTAX3INCETHE#OMPANYISCOVEREDUNDERBOTH
Governance

THE REGIMES THE MANAGEMENT IS REQUIRED TO APPLY JUDGMENT

IN THE INTERPRETATION WITH RESPECT TO INPUT TAX CREDIT AVAILABLE
AND TAXABILITY OF THE PRODUCTS AND SERVICES 3INCE SIGNIlCANT
JUDGMENTOFTHEMANAGEMENTISREQUIREDTHEAREAISAKEYAUDIT
Financial financial

MATTERFOROURAUDIT
Statements
Standalone
statements
 160 Indian Oil Corporation Limited 2nd Integrated Annual Report

Key Audit Matters Auditors’ response to Key Audit Matters

Investments in Subsidiaries, Joint Ventures and Associates

)NVESTMENTS IN SUBSIDIARIES JOINT VENTURES AND ASSOCIATES ARE 7ITH REFERENCE TO THIS KEY AUDIT MATTER WE CONSIDERED THE
VALUED AT COST ADJUSTED FOR IMPAIRMENT LOSSES )N LINE WITH FOLLOWING
h)ND!3)MPAIRMENTOFASSETSvINCASETHEREISANINDICATION
• "OOKVALUEOFTHEINVESTMENTSINSUBSIDIARIESJOINTVENTURE
OFPOSSIBLEIMPAIRMENTTHE#OMPANYCARRIESOUTANIMPAIRMENT
TEST BY COMPARING THE RECOVERABLE AMOUNT OF THE INVESTMENTS
determined according to the value in use method and their
CARRYINGAMOUNT4HEVALUATIONPROCESSADOPTEDBYMANAGEMENT
ANDASSOCIATESASCOMPAREDTOTHECARRYINGAMOUNT
• -ARKET CAPITALIZATION IN CASE OF LISTED ENTITIES IN WHICH
investments have been made
IS COMPLEX AND IS BASED ON A SERIES OF ASSUMPTIONS SUCH AS
THEFORECASTCASHmOWSTHEAPPROPRIATEDISCOUNTINGRATEANDTHE • 4HEPRICESOFCRUDEGASBEINGHIGHERTHANTHEPREVIOUSYEARS
GROWTH RATE 4HESE ASSUMPTIONS ARE BY NATURE INmUENCED BY LEVELINCASEOFUPSTREAMCOMPANIESWHERETHEINVESTMENTS
FUTUREEXPECTATIONSREGARDINGTHEEVOLUTIONOFEXTERNALMARKET HAVEBEENMADE

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
VALUEOFTHEINVESTMENTSANALYSEDTHEMETHODSANDASSUMPTIONS
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
ASSUMPTIONSMADETOESTIMATETHEIRCASHmOWSANDOBTAINING
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

environment in the airline industry during the year have increased
THE RISKS OF DEFAULT ON RECEIVABLES FROM THE #OMPANYS AIRLINE
CUSTOMERS IF THEY FAIL TO MEET THEIR CONTRACTUAL OBLIGATIONS IN
ACCORDANCEWITHTHECONTRACTS
4HE MANAGEMENT HAS DETERMINED AND ASSESSED THAT THESE
From the
RECOVERABILITYOFTHEDUESFROMAIRLINECOMPANIES
• PERUSING THE CONlRMATIONS FROMRECONCILIATIONS WITH THE
airline customers indicating that there are no material
DISCREPANCIESORDISPUTES

AMOUNTS ARE GOOD OF RECOVERY CONSIDERING THE DUES RECEIVABLE
FROMAGOVERNMENTAIRLINECOMPANYANDlNANCIALBANKGUARANTEES
RECEIVEDFROMPRIVATEAIRLINESCOVERINGTHEAMOUNTDUEFROMTHE
PRIVATEAIRLINECOMPANIES
About IndianOil
• PERUSINGTHElNANCIALBANKGUARANTEESRECEIVEDFROMPRIVATE
AIRLINESCOVERINGTHEAMOUNTDUEFROMTHEM
7EAREALSOINFORMEDTHATTHE#OMPANYHASINVOKEDBANKGUARANTEE
OBTAINEDFROMONEPRIVATEAIRLINEANDREALISEDTHEMONEYAGAINST
#ONSIDERINGTHEMATERIALITYOFTHEAMOUNTINVOLVEDWECONSIDERED 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

Directors and others

INFORMATION included
information INCLUDED in
IN the
THE &INANCIAL
Financial 0ERFORMANCE
Performance HIGHLIGHTS
highlights, "OARDS
Board’s 2EPORT
Report INCLUDING
including !NNEXURES
Annexures TOto "OARDS
Board’s 2EPORT
Report, -ANAGEMENT
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!NNUAL2EPORTBUTDOESNOTINCLUDETHESTANDALONElNANCIALSTATEMENTSANDOURAUDITORSREPORTTHEREON
information in Integrated Annual Report but does not include the standalone financial statements and our auditors’ report thereon.

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.
4HEOTHERINFORMATIONTOTHEEXTENTNOTMADEAVAILABLETOUSASOFTHEDATEOFSIGNINGTHISREPORTISEXPECTEDTOBEMADEAVAILABLETOUS
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.

Discussion & Analysis

)NCONNECTIONWITHOURAUDITOFTHESTANDALONElNANCIALSTATEMENTSOURRESPONSIBILITYISTOREADTHEOTHERINFORMATIONANDIDENTIlED
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and identified
ABOVEWHENITBECOMESAVAILABLEANDINDOINGSOCONSIDERWHETHERTHEOTHERINFORMATIONISMATERIALLYINCONSISTENTWITHTHESTANDALONE
above when it becomes available, and in doing so, consider whether the other information is materially inconsistent with the standalone

Management’s
lNANCIALSTATEMENTSOROURKNOWLEDGEOBTAINEDINTHEAUDITOROTHERWISEAPPEARSTOBEMATERIALLYMISSTATED
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
)FBASEDONTHEWORKWEHAVEPERFORMEDONTHEOTHERINFORMATIONTHATWEOBTAINEDPRIORTOTHEDATEOFAUDITORSREPORTWECONCLUDETHAT
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
THEREISAMATERIALMISSTATEMENTOFTHISINFORMATIONWEAREREQUIREDTOREPORTTHATFACT7EHAVENOTHINGTOREPORTINTHISREGARD
there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
7HENWEREADTHEOTHERINFORMATIONIFWECONCLUDETHATTHEREISMATERIALMISSTATEMENTTHEREINWEAREREQUIREDTOCOMMUNICATETHE
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
THESESTANDALONElNANCIALSTATEMENTSTHATGIVEATRUEANDFAIRVIEWOFTHElNANCIALPOSITIONlNANCIALPERFORMANCETOTALCOMPREHENSIVE
INCOMECHANGESINEQUITYANDCASHmOWSOFTHE#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
JUDGMENTSANDESTIMATESTHATAREREASONABLEANDPRUDENTANDDESIGNIMPLEMENTATIONANDMAINTENANCEOFADEQUATEINTERNALlNANCIAL
CONTROLSTHATWEREOPERATINGEFFECTIVELYFORENSURINGTHEACCURACYANDCOMPLETENESSOFTHEACCOUNTINGRECORDSRELEVANTTOTHEPREPARATION
ANDPRESENTATIONOFTHESTANDALONElNANCIALSTATEMENTSTHATGIVEATRUEANDFAIRVIEWANDAREFREEFROMMATERIALMISSTATEMENTWHETHER
Financial financial

DUETOFRAUDORERROR
Statements
Standalone
statements
 162 Indian Oil Corporation Limited 2nd Integrated Annual Report

)NPREPARINGTHESTANDALONElNANCIALSTATEMENTSTHE"OARDOF$IRECTORSISRESPONSIBLEFORASSESSINGTHE#OMPANYSABILITYTOCONTINUEAS
AGOINGCONCERNDISCLOSINGASAPPLICABLEMATTERSRELATEDTOGOINGCONCERNANDUSINGTHEGOINGCONCERNBASISOFACCOUNTINGUNLESSTHE
MANAGEMENTEITHERINTENDSTOLIQUIDATETHE#OMPANYORTOCEASEOPERATIONSORHASNOREALISTICALTERNATIVEBUTTODOSO
4HE"OARDOF$IRECTORSISALSORESPONSIBLEFOROVERSEEINGTHE#OMPANYSlNANCIALREPORTINGPROCESS
Auditors’ Responsibilities for the Audit of the Standalone Financial Statements
/UROBJECTIVESARETOOBTAINREASONABLEASSURANCEABOUTWHETHERTHESTANDALONElNANCIALSTATEMENTSASAWHOLEAREFREEFROMMATERIAL
MISSTATEMENTWHETHERDUETOFRAUDORERRORANDTOISSUEANAUDITORSREPORTTHATINCLUDESOUROPINION2EASONABLEASSURANCEISAHIGH
LEVELOFASSURANCEBUTISNOTAGUARANTEETHATANAUDITCONDUCTEDINACCORDANCEWITH3!SWILLALWAYSDETECTAMATERIALMISSTATEMENT
WHENITEXISTS-ISSTATEMENTSCANARISEFROMFRAUDORERRORANDARECONSIDEREDMATERIALIFINDIVIDUALLYORINTHEAGGREGATETHEYCOULD
REASONABLYBEEXPECTEDTOINmUENCETHEECONOMICDECISIONSOFUSERSTAKENONTHEBASISOFTHESESTANDALONElNANCIALSTATEMENTS
!SPARTOFANAUDITINACCORDANCEWITH3!SWEEXERCISEPROFESSIONALJUDGMENTANDMAINTAINPROFESSIONALSKEPTICISMTHROUGHOUTTHEAUDIT
7EALSO
• )DENTIFYANDASSESSTHERISKSOFMATERIALMISSTATEMENTOFTHESTANDALONElNANCIALSTATEMENTSWHETHERDUETOFRAUDORERRORDESIGN
ANDPERFORMAUDITPROCEDURESRESPONSIVETOTHOSERISKSANDOBTAINAUDITEVIDENCETHATISSUFlCIENTANDAPPROPRIATETOPROVIDEABASIS
FOROUROPINION4HERISKOFNOTDETECTINGAMATERIALMISSTATEMENTRESULTINGFROMFRAUDISHIGHERTHANFORONERESULTINGFROMERRORAS
FRAUDMAYINVOLVECOLLUSIONFORGERYINTENTIONALOMISSIONSMISREPRESENTATIONSORTHEOVERRIDEOFINTERNALCONTROL
• /BTAINANUNDERSTANDINGOFINTERNALCONTROLSRELEVANTTOTHEAUDITINORDERTODESIGNAUDITPROCEDURESTHATAREAPPROPRIATEINTHE
CIRCUMSTANCES5NDERSECTION I OFTHE!CTWEAREALSORESPONSIBLEFOREXPRESSINGOUROPINIONONWHETHERTHE#OMPANYHAS
ADEQUATEINTERNALlNANCIALCONTROLSSYSTEMINPLACEANDTHEOPERATINGEFFECTIVENESSOFSUCHCONTROLS
• %VALUATETHEAPPROPRIATENESSOFACCOUNTINGPOLICIESUSEDANDTHEREASONABLENESSOFACCOUNTINGESTIMATESANDRELATEDDISCLOSURES
MADEBYMANAGEMENT
• #ONCLUDEONTHEAPPROPRIATENESSOFMANAGEMENTSUSEOFTHEGOINGCONCERNBASISOFACCOUNTINGANDBASEDONTHEAUDITEVIDENCE
OBTAINEDWHETHERAMATERIALUNCERTAINTYEXISTSRELATEDTOEVENTSORCONDITIONSTHATMAYCASTSIGNIlCANTDOUBTONTHEABILITYOFTHE
#OMPANYTOCONTINUEASAGOINGCONCERN)FWECONCLUDETHATAMATERIALUNCERTAINTYEXISTSWEAREREQUIREDTODRAWATTENTIONINOUR
AUDITORSREPORTTOTHERELATEDDISCLOSURESINTHESTANDALONElNANCIALSTATEMENTSORIFSUCHDISCLOSURESAREINADEQUATETOMODIFYOUR
OPINION/URCONCLUSIONSAREBASEDONTHEAUDITEVIDENCEOBTAINEDUPTOTHEDATEOFOURAUDITORSREPORT(OWEVERFUTUREEVENTSOR
CONDITIONSMAYCAUSETHE#OMPANYTOCEASETOCONTINUEASAGOINGCONCERN
• %VALUATETHEOVERALLPRESENTATIONSTRUCTUREANDCONTENTOFTHESTANDALONElNANCIALSTATEMENTSINCLUDINGTHEDISCLOSURESANDWHETHER
THESTANDALONElNANCIALSTATEMENTSREPRESENTTHEUNDERLYINGTRANSACTIONSANDEVENTSINAMANNERTHATACHIEVESFAIRPRESENTATION
7ECOMMUNICATEWITHTHOSECHARGEDWITHGOVERNANCEREGARDINGAMONGOTHERMATTERSTHEPLANNEDSCOPEANDTIMINGOFTHEAUDITAND
SIGNIlCANTAUDITlNDINGSINCLUDINGANYSIGNIlCANTDElCIENCIESININTERNALCONTROLTHATWEIDENTIFYDURINGOURAUDIT
7EALSOPROVIDETHOSECHARGEDWITHGOVERNANCEWITHASTATEMENTTHATWEHAVECOMPLIEDWITHRELEVANTETHICALREQUIREMENTSREGARDING
INDEPENDENCE AND TO COMMUNICATE WITH THEM ALL RELATIONSHIPS AND OTHER MATTERS THAT MAY REASONABLY BE THOUGHT TO BEAR ON OUR
INDEPENDENCEANDWHEREAPPLICABLERELATEDSAFEGUARDS
&ROMTHEMATTERSCOMMUNICATEDWITHTHOSECHARGEDWITHGOVERNANCEWEDETERMINETHOSEMATTERSTHATWEREOFMOSTSIGNIlCANCEINTHE
AUDITOFTHESTANDALONElNANCIALSTATEMENTSOFTHECURRENTPERIODANDARETHEREFORETHEKEYAUDITMATTERS7EDESCRIBETHESEMATTERSIN
OURAUDITORSREPORTUNLESSLAWORREGULATIONPRECLUDESPUBLICDISCLOSUREABOUTTHEMATTERORWHENINEXTREMELYRARECIRCUMSTANCESWE
DETERMINETHATAMATTERSHOULDNOTBECOMMUNICATEDINOURREPORTBECAUSETHEADVERSECONSEQUENCESOFDOINGSOWOULDREASONABLYBE
EXPECTEDTOOUTWEIGHTHEPUBLICINTERESTBENElTSOFSUCHCOMMUNICATION
Other Matters
A  7EDIDNOTAUDITTHESTANDALONElNANCIALSTATEMENTSINFORMATIONOFONE"RANCHINCLUDEDINTHESTANDALONElNANCIALSTATEMENTS
OFTHE#OMPANYWHOSElNANCIALSTATEMENTSlNANCIALINFORMATIONREmECTTOTALASSETSOF`CROREASAT-ARCHAND
TOTALREVENUESOF`CROREFORTHEYEARENDEDONTHATDATEASCONSIDEREDINTHESTANDALONElNANCIALSTATEMENTS4HElNANCIAL
 60th Annual Report 2018-19 163

About the
Report
STATEMENTSINFORMATIONOFTHIS"RANCHHAVEBEENAUDITEDBYTHE"RANCH!UDITORWHOSEREPORTHASBEENFURNISHEDTOUSANDOUR
OPINIONINSOFARASITRELATESTOTHEAMOUNTSANDDISCLOSURESINCLUDEDINRESPECTOFTHIS"RANCHISBASEDSOLELYONTHEREPORTOFSUCH
"RANCH!UDITOR

Chairman’s Desk
B  4HESTANDALONElNANCIALSTATEMENTSINCLUDETHE#OMPANYSPROPORTIONATESHARERELATINGTO*OINTLYCONTROLLEDOPERATIONS INASSETS
`CRORELIABILITIES`CROREINCOMEOF`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
EXPLORATORYDEVELOPMENTANDDRYWELLALLOCATIONOFCOSTINCURREDONTHEMLIABILITYUNDER.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 /RDERhTHE/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!CTANDONTHEBASISOFSUCHCHECKSOFTHEBOOKSANDRECORDSOFTHE#OMPANYASWE
considered appropriate and according to the information and explanations given to us, we give in the “Annexure 1” a statement on
CONSIDEREDAPPROPRIATEANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSWEGIVEINTHEh!NNEXUREvASTATEMENTON

Capitals
the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
THEMATTERSSPECIlEDINTHEPARAGRAPHSANDOFTHESAID/RDERTOTHEEXTENTAPPLICABLE
2. 7EAREENCLOSINGOURREPORTINTERMSOF3ECTION OFTHE!CTONTHEBASISOFSUCHCHECKSOFTHEBOOKSANDRECORDSOFTHE
 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
#OMPANYASWECONSIDEREDAPPROPRIATEANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSINTHEh!NNEXUREvONTHE

Directors and others

directions issued by the Comptroller and Auditor General of India.
DIRECTIONSISSUEDBYTHE#OMPTROLLERAND!UDITOR'ENERALOF)NDIA
3. !SREQUIREDBY3ECTION OFTHE!CTWEREPORTTHAT
 As required by Section 143(3) of the Act, we report that:

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!CTBY"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

Discussion & Analysis

d) 4HE"ALANCE3HEETTHE3TATEMENTOF0ROlTAND,OSSINCLUDING/THER#OMPREHENSIVE)NCOME 3TATEMENTOFCHANGESIN%QUITY
D  The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income),Statement of changes in Equity
and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account and with the returns
ANDTHE3TATEMENTOF#ASH&LOWSDEALTWITHBYTHIS2EPORTAREINAGREEMENTWITHTHEBOOKSOFACCOUNTANDWITHTHERETURNS

Management’s
received from the Branch not visited by us.
RECEIVEDFROMTHE"RANCHNOTVISITEDBYUS
e) )NOUROPINIONTHEAFORESAIDSTANDALONElNANCIALSTATEMENTSCOMPLYWITHTHE)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!CTREADWITH2ULEOFTHE#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#OMPANYBEINGA'OVERNMENT#OMPANYINTERMSOFNOTIlCATIONNO'32% DATED*UNEISSUED
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”.
EFFECTIVENESSOFSUCHCONTROLSREFERTOOURSEPARATEREPORTINh!NNEXUREv
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
 164 Indian Oil Corporation Limited 2nd Integrated Annual Report

H  7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITHTHEREQUIREMENTSOFSECTION 
OFTHE!CTASAMENDED
 7EAREINFORMEDTHATTHEPROVISIONSOF3ECTIONREADWITH3CHEDULE6OFTHE!CTRELATINGTOMANAGERIALREMUNERATIONARENOT
APPLICABLETOTHE#OMPANYBEINGA'OVERNMENT#OMPANYINTERMSOF-INISTRYOF#ORPORATE!FFAIRS.OTIlCATIONNO'32
% DATED*UNE
I  7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITH2ULEOFTHE#OMPANIES!UDIT
AND!UDITORS 2ULESINOUROPINIONANDTOTHEBESTOFOURINFORMATIONANDACCORDINGTOTHEEXPLANATIONSGIVENTOUS
I 4HE#OMPANYHASDISCLOSEDTHEIMPACTOFPENDINGLITIGATIONSONITSlNANCIALPOSITIONINITSSTANDALONElNANCIALSTATEMENTS
2EFER.OTE"TOTHESTANDALONElNANCIALSTATEMENTS
II 4HE #OMPANY HAS MADE PROVISION AS REQUIRED UNDER THE APPLICABLE LAW OR )NDIAN ACCOUNTING STANDARDS FOR MATERIAL
FORESEEABLELOSSESIFANYONLONGTERMCONTRACTSINCLUDINGDERIVATIVECONTRACTS 2EFER.OTETOSTANDALONElNANCIAL
STATEMENTS
III 4HEREHASBEENNODELAYINTRANSFERRINGTHEAMOUNTREQUIREDTOBETRANSFERREDTOTHE)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%

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

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  4HEREISAREGULARPROGRAMMEOFPHYSICALVERIlCATIONOFALLlXEDASSETSOTHERTHAN,0'CYLINDERSANDPRESSUREREGULATORSWITH
CUSTOMERSOVERAPERIODOFTHREEYEARSWHICHINOUROPINIONISREASONABLEHAVINGREGARDTOTHESIZEOFTHE#OMPANYANDTHE
NATUREOFITSlXEDASSETS)NOUROPINIONANDASPERTHEINFORMATIONGIVENBYTHE-ANAGEMENTTHEDISCREPANCIESOBSERVEDWERE

About IndianOil
NOTMATERIALANDHAVEBEENAPPROPRIATELYACCOUNTEDFORINTHEBOOKS
C  !CCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSANDONTHEBASISOFOUREXAMINATIONOFRECORDSOFTHE#OMPANYTHE
TITLELEASEDEEDSOFTHEIMMOVABLEPROPERTIESAREHELDINTHENAMEOFTHE#OMPANYEXCEPTINCASESGIVENBELOW

Particulars Number of Gross Block/Value Net Block/Value

cases (`in Crore) (`in Crore)

Description of
,EASEHOLD,AND /PERATINGLEASES   
,EASEHOLD,AND &INANCELEASES   

Capitals
Leasehold Land- Total 24 69.34 61.04
&REEHOLD,AND   

Directors and others

Building   
"UILDING OPERATING,EASE 1  

Board of
II  )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHEINVENTORYEXCLUDINGINVENTORYLYINGWITHTHIRD
PARTIES AND MATERIAL IN TRANSIT  HAS BEEN PHYSICALLY VERIlED BY THE MANAGEMENT DURING THE YEAR AT REASONABLE INTERVALS AND NO
MATERIALDISCREPANCIESWERENOTICEDONPHYSICALVERIlCATION
III  )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYHASNOTGRANTEDANYLOANSSECUREDOR
UNSECUREDDURINGTHEYEARTOANYCOMPANIESlRMSANDLIMITEDLIABILITYPARTNERSHIPSOROTHERPARTIESCOVEREDINREGISTERMAINTAINED
UNDER3ECTIONOFTHE!CT

Directors’
Report
 )NVIEWOFTHEABOVEREPORTINGUNDERCLAUSEIII A III B ANDIII C OFTHE/RDERISNOTAPPLICABLE
IV  )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYISEXEMPTEDFROMTHEPROVISIONSOFSECTION

Discussion & Analysis

OFTHE!CTASITISENGAGEDINTHEBUSINESSOFPROVIDINGINFRASTRUCTUREFACILITIESASPROVIDEDUNDER3CHEDULE 6)OFTHE!CT4HERE
WERENOTRANSACTIONSDURINGTHEYEARTOWHICHTHEPROVISIONSOFSECTIONOFTHE!CTWEREAPPLICABLE

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 
2ULESASAMENDEDANDOTHERRELEVANTPROVISIONSOFTHE!CTANDNODEPOSITSAREOUTSTANDINGATTHEYEARENDEXCEPTOLDCASES
under dispute aggregating to `CROREWHEREWEAREINFORMEDTHATTHE#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!CTREADWITH#OMPANIES#OST2ECORDS

Business
!UDIT 2ULESASAMENDEDANDWEAREOFTHEOPINIONTHATPRIMAFACIETHEPRESCRIBEDACCOUNTSANDRECORDSHAVEBEENMADE
ANDMAINTAINED7EHAVENOTHOWEVERMADEDETAILEDEXAMINATIONOFTHERECORDSWITHAVIEWTODETERMINEWHETHERTHEYAREACCURATE
ANDCOMPLETE
Report on Corporate
VII A 5NDISPUTEDSTATUTORYDUESINCLUDINGPROVIDENTFUNDEMPLOYEESSTATEINSURANCEINCOMETAXSALES TAXVALUEADDEDTAXSERVICE
TAXDUTYOFCUSTOMDUTYOFEXCISEGOODSANDSERVICETAXCESSANDOTHERSTATUTORYDUESHAVEGENERALLYBEENREGULARLYDEPOSITED
Governance

WITHTHEAPPROPRIATEAUTHORITIESANDTHEREARENOUNDISPUTEDDUESOUTSTANDINGASON-ARCHFORAPERIODOFMORETHAN
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

VIII )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYHASNOTDEFAULTEDINREPAYMENTOFDUES

TOlNANCIALINSTITUTIONSBANKS'OVERNMENTORDEBENTUREHOLDERS
Statements
Standalone
statements
 166 Indian Oil Corporation Limited 2nd Integrated Annual Report

IX  !CCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYHASAPPLIEDTHETERMLOANSFORTHEPURPOSEFORWHICHTHOSE

WEREOBTAINED$URINGTHEYEARTHE#OMPANYHASNOTRAISEDMONEYTHROUGHINITIALPUBLICOFFERORFURTHERPUBLICOFFERINCLUDINGDEBT
INSTRUMENTS (OWEVERTHE#OMPANYHASISSUEDBONDSFORWORKINGCAPITALREQUIREMENTSINTHEINTERNATIONALMARKETANDASPERTHE
INFORMATIONANDEXPLANATIONSGIVENTOUSTHEFUNDSWEREAPPLIEDFORTHEPURPOSEFORWHICHTHOSEWERERAISED
X  !CCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSANDASREPRESENTEDBYTHE-ANAGEMENTANDBASEDONOUREXAMINATIONOF
THEBOOKSANDRECORDSOFTHE#OMPANYANDINACCORDANCEWITHGENERALLYACCEPTEDAUDITINGPRACTICESIN)NDIANOMATERIALCASEOF
FRAUDSBYTHE#OMPANYORONTHE#OMPANYBYITSOFlCERSOREMPLOYEESHASBEENNOTICEDORREPORTEDDURINGTHEYEAR
XI  4HE PROVISIONS OF 3ECTION  READ WITH 3CHEDULE 6 OF THE !CT RELATING TO MANAGERIAL REMUNERATION ARE NOT APPLICABLE TO THE
#OMPANYBEINGA'OVERNMENT#OMPANYINTERMSOF-INISTRYOF#ORPORATE!FFAIRS.OTIlCATIONNO'32% DATED*UNE

XII )NOUROPINIONANDACCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYISNOTA.IDHI#OMPANYANDTHEREFORE
THEREPORTINGUNDER#LAUSEXII OFTHE/RDERISNOTAPPLICABLE
XIII )N OUR OPINION AND ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN BY THE MANAGEMENT ALL TRANSACTIONS DURING THE YEAR
WITH THE RELATED PARTIES WERE APPROVED BY THE !UDIT #OMMITTEE AND ARE IN COMPLIANCE WITH SECTION  AND  OF THE !CT
WHEREAPPLICABLEANDTHEDETAILSHAVEBEENDISCLOSEDINTHESTANDALONElNANCIALSTATEMENTSASREQUIREDBYTHEAPPLICABLE)NDIAN
ACCOUNTINGSTANDARDS
XIV !CCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYHASNOTMADEANYPREFERENTIALALLOTMENTORPRIVATEPLACEMENT
OFSHARESORFULLYORPARTLYCONVERTIBLEDEBENTURESDURINGTHEYEARANDTHEREFOREPROVISIONSOF3ECTIONOFTHE!CTARENOTAPPLICABLE
TOTHE#OMPANYDURINGTHEYEAR
XV  )N OUR OPINION AND ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US THE #OMPANY HAS NOT ENTERED INTO ANY NON CASH
TRANSACTIONSSPECIlEDUNDERSECTIONOFTHE!CTWITHDIRECTORSORPERSONSCONNECTEDWITHHIM
XVI !CCORDINGTOTHEINFORMATIONANDEXPLANATIONSGIVENTOUSTHE#OMPANYISNOTREQUIREDTOBEREGISTEREDUNDERSECTION )!OFTHE
2ESERVE"ANKOF)NDIA!CT

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%

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

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

Directors and others

4RIBUNAL    TO
Revisionary     
Authority

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

Discussion & Analysis

Revisionary    TO
Authority

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

 FINANCE ACT, 3%26)#%4!8 4RIBUNAL    TO

1994 Appellate    TO
Authority
"ELOW
Financial financial

4RIBUNAL
Total 43.68 0.97 42.71
Statements
Standalone
statements
 168 Indian Oil Corporation Limited 2nd Integrated Annual Report

REPORTING AS PER COMPANIES (AUDITOR’S REPORT) ORDER 2016

(DISPUTED STATUTORY DUES)
Appendix - A
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
pending (` Crore) (` Crore) Amount relates
(Financial
Years)
 STATE %.4294!8 Supreme Court    TO
LEGISLATIONS High Court    TO
4RIBUNAL    TO
Revisionary    TO
Authority
Appellate    TO
Authority
"ELOW
4RIBUNAL
Total 5,838.16 231.95 5,606.21
 OTHER /4(%23 Supreme Court      
CENTRAL/STATE #/--%2#)!,4!8 High Court    TO
LEGISLATIONS ETC Appellate    TO
Authority
"ELOW
4RIBUNAL
Total 101.84 11.65 90.19
GRAND TOTAL 22,556.95 4,679.48 17,877.47
Note: $UESINCLUDEPENALTYANDINTERESTWHEREVERAPPLICABLE
 60th Annual Report 2018-19 169

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
IMPLICATIONSIFANYMAYBESTATED 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)FYESlNANCIAL 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

Directors and others

ACCOUNTEDFORUTILIZEDASPERITSTERMANDCONDITIONS SCHEMESFROMCENTRALSTATEAGENCIESASPERITS
,ISTTHECASESOFDEVIATION term and conditions

Board of
Directors’
Report
For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES

Discussion & Analysis

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%

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

ANNEXURE 3 TO THE INDEPENDENT AUDITORS’ 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)#!) 
4HESERESPONSIBILITIESINCLUDETHEDESIGNIMPLEMENTATIONANDMAINTENANCEOFADEQUATEINTERNALlNANCIALCONTROLSTHATWEREOPERATING
EFFECTIVELYFORENSURINGTHEORDERLYANDEFlCIENTCONDUCTOFITSBUSINESSINCLUDINGADHERENCETOCOMPANYSPOLICIESTHESAFEGUARDINGOF
ITSASSETSTHEPREVENTIONANDDETECTIONOFFRAUDSANDERRORSTHEACCURACYANDCOMPLETENESSOFTHEACCOUNTINGRECORDSANDTHETIMELY
PREPARATIONOFRELIABLElNANCIALINFORMATIONASREQUIREDUNDERTHE!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
APPLICABLETOANAUDITOFINTERNALlNANCIALCONTROLSBOTHAPPLICABLETOANAUDITOF)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
ANUNDERSTANDINGOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGASSESSINGTHERISKTHATAMATERIALWEAKNESSEXISTSANDTESTING
ANDEVALUATINGTHEDESIGNANDOPERATINGEFFECTIVENESSOFINTERNALCONTROLBASEDONTHEASSESSEDRISK4HEPROCEDURESSELECTEDDEPENDON
THEAUDITORSJUDGEMENTINCLUDINGTHEASSESSMENTOFTHERISKSOFMATERIALMISSTATEMENTOFTHESTANDALONElNANCIALSTATEMENTSWHETHER
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 PERTAINTOTHEMAINTENANCEOFRECORDSTHATINREASONABLEDETAILACCURATELYANDFAIRLYREmECTTHETRANSACTIONSAND
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 PROVIDEREASONABLEASSURANCEREGARDINGPREVENTIONORTIMELYDETECTIONOFUNAUTHORISEDACQUISITIONUSEORDISPOSITIONOFTHE
COMPANYSASSETSTHATCOULDHAVEAMATERIALEFFECTONTHESTANDALONElNANCIALSTATEMENTS
 60th Annual Report 2018-19 171

About the
Report
Inherent Limitations of Internal Financial Controls over Financial Reporting
"ECAUSEOFTHEINHERENTLIMITATIONSOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGINCLUDINGTHEPOSSIBILITYOFCOLLUSIONORIMPROPER
MANAGEMENTOVERRIDEOFCONTROLSMATERIALMISSTATEMENTSDUETOERRORORFRAUDMAYOCCURANDNOTBEDETECTED!LSOPROJECTIONSOFANY

Chairman’s Desk
EVALUATIONOFTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGTOFUTUREPERIODSARESUBJECTTOTHERISKTHATTHEINTERNALlNANCIAL
CONTROLOVERlNANCIALREPORTINGMAYBECOMEINADEQUATEBECAUSEOFCHANGESINCONDITIONSORTHATTHEDEGREEOFCOMPLIANCEWITHTHE

From the
POLICIESORPROCEDURESMAYDETERIORATE
Opinion
)NOUROPINIONTHE#OMPANYHASINALLMATERIALRESPECTSANADEQUATEINTERNALlNANCIALCONTROLSSYSTEMOVERlNANCIALREPORTINGANDSUCH
INTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGWEREOPERATINGEFFECTIVELYASAT-ARCHBASEDONTHEINTERNALCONTROLOVER

About IndianOil
lNANCIALREPORTINGCRITERIAESTABLISHEDBYTHE#OMPANYCONSIDERINGTHEESSENTIALCOMPONENTSOFINTERNALCONTROLSTATEDINTHE'UIDANCE
.OTEON!UDITOF)NTERNAL&INANCIAL#ONTROLS/VER&INANCIAL2EPORTINGISSUEDBYTHE)#!)
Other Matters
/URAFORESAIDREPORTUNDERSECTION I OFTHE!CTONTHEADEQUACYANDOPERATINGEFFECTIVENESSOFTHEINTERNALlNANCIALCONTROLS
OVERlNANCIALREPORTINGINSOFARASITRELATESTOONE"RANCHAUDITEDBYTHE"RANCH!UDITORISBASEDONTHECORRESPONDINGREPORTOFTHE

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%

Discussion & Analysis

3D 3D 3D 3D

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

STANDALONE FINANCIAL STATEMENTS

BALANCE SHEET AS AT MARCH 31, 2019
`IN#RORE
Particulars Note No. March 31, 2019 March 31, 2018
ASSETS
Non-current Assets
A 0ROPERTY0LANTAND%QUIPMENT 2 1,17,331.22 
B #APITAL7ORK IN 0ROGRESS  22,160.52 
C )NTANGIBLE!SSETS 3 1,376.61 
D )NTANGIBLE!SSETS5NDER$EVELOPMENT  1,438.44 
E &INANCIAL!SSETS
I )NVESTMENTS 4
%QUITYINVESTMENTIN3UBSIDIARIES*OINT6ENTURESAND!SSOCIATES 17,956.51 
Other Investments 23,383.07 
II ,OANS  2,281.40 
III /THER&INANCIAL!SSETS  202.25 
F )NCOME4AX!SSETS.ET  1,347.85 
G /THER.ON #URRENT!SSETS 8 3,786.73 
1,91,264.60 1,77,684.94
Current Assets
A )NVENTORIES  71,470.38 
B &INANCIAL!SSETS
I )NVESTMENTS 4 8,415.80 
II 4RADE2ECEIVABLES  15,448.02 
III #ASHAND#ASH%QUIVALENTS 11 38.50 
IV "ANK"ALANCESOTHERTHANABOVE 12 52.86 
V ,OANS  1,378.20 
VI /THER&INANCIAL!SSETS  22,741.38 
C #URRENT4AX!SSETS.ET  486.60 
D /THER#URRENT!SSETS 8 4,183.98 
1,24,215.72 1,02,896.69
Assets Held for Disposal 13 227.40 
1,24,443.12 1,03,058.37
TOTAL ASSETS 3,15,707.72 2,80,743.31
EQUITY AND LIABILITIES
EQUITY
A %QUITY3HARE#APITAL 14 9,181.04 
B /THER%QUITY  99,476.47 
1,08,657.51 1,10,171.02
 60th Annual Report 2018-19 173

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 

About IndianOil
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 

Directors and others

II 4RADE0AYABLES 22
!4OTALOUTSTANDINGDUESOF-ICROAND3MALL%NTERPRISES 235.24 

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

Discussion & Analysis

3IGNIlCANT!CCOUNTING0OLICIES%STIMATES*UDGEMENTS !"

Management’s
!CCOMPANYING.OTESTO&INANCIAL3TATEMENTS  

For and on Behalf of Board of Directors

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

3D 3D 3D 3D

(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER
Financial financial

-.O -.O -.O -.O

Statements
Standalone
statements

0LACE.EW$ELHI
$ATE-AY
 174 Indian Oil Corporation Limited 2nd Integrated Annual Report

STANDALONE FINANCIAL STATEMENTS

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Particulars Note No. 2018-19 2017-18

I. Revenue From Operations 23 6,05,923.77 

II. Other Income 24 3,128.51 

III. Total Income (I+II) 6,09,052.28 5,09,842.21

IV. Expenses:

#OSTOF-ATERIALS#ONSUMED  2,69,679.61 

%XCISE$UTY 78,231.08 

[Includes ` CRORE  ` CRORE  INCLUDED IN
2EVENUEFROM/PERATIONS=

0URCHASESOF3TOCK IN 4RADE 1,79,055.50 

#HANGESIN)NVENTORIESOF&INISHED'OODS3TOCK IN TRADEAND3TOCK  (3,011.13) 

)N0ROCESS

%MPLOYEE"ENElTS%XPENSE  11,102.17 

&INANCE#OSTS 28 4,311.03 

$EPRECIATIONAND!MORTIZATIONON

A 4ANGIBLE!SSETS 7,410.58 

B )NTANGIBLE!SSETS 103.71 

7,514.29 7,067.01

.ET,OSSONDE RECOGNITIONOF&INANCIAL!SSETSAT!MORTISED#OST 3.29 

/THER%XPENSES  37,039.52 

Total Expenses (IV) 5,83,925.36 4,77,277.93

60ROlTBEFORE4AX))) )6 25,126.92 

VI. Tax Expense:

#URRENT4AX 5,100.94 

[includes `CRORE[` CRORE]RELATINGTOPRIOR

YEARS=

$EFERRED4AX 3,131.83 

;INCLUDES` CRORE.), RELATINGTOPRIORYEARS=

6))0ROlT&OR4HE9EAR6 6) 16,894.15 21,346.12

 60th Annual Report 2018-19 175

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: 

!I )TEMSTHATWILLNOTBERECLASSIlEDTOPROlTORLOSS (1,982.05) 

!II )NCOME4AXRELATINGTOITEMSTHATWILLNOTBERECLASSIlEDTO (463.51) 

About IndianOil
PROlTORLOSS

"I )TEMSTHATWILLBERECLASSIlEDTOPROlTORLOSS 155.25 

"II )NCOME4AXRELATINGTOITEMSTHATWILLBERECLASSIlEDTOPROlT (34.11) 

or loss

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

 "ASIC 17.89 

Directors and others

 $ILUTED 17.89 

&ACE6ALUE0ER%QUITY3HARE` 10 

Board of
3IGNIlCANT!CCOUNTING0OLICIES%STIMATES*UDGEMENTS !"

!CCOMPANYING.OTESTO&INANCIAL3TATEMENTS  

Directors’
Report
For and on Behalf of Board of Directors

Discussion & Analysis

3D 3D 3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)

Management’s
Chairman $IRECTOR&INANCE Company Secretary
$).  $).  !#3 

As per our attached Report of even date

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

STANDALONE FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Particulars 2018-19 2017-18
A Cash Flow from Operating Activities
0ROlT"EFORE4AX 25,126.92 32,564.28
!DJUSTMENTSFOR
$EPRECIATIONAND!MORTISATION 7,514.29 
,OSS0ROlT ONSALEOF!SSETSNET 152.87 
,OSS0ROlT ONSALEOF)NVESTMENTSNET 1.60 
!MORTISATIONOF#APITAL'RANTS (99.99) 
0ROVISIONFOR0ROBABLE#ONTINGENCIESNET (1,492.97) 
-4- ,OSSGAIN  ARISING ON lNANCIAL ASSETSLIABILITIES AS AT FAIR 2.77 
VALUETHROUGHPROlTANDLOSS
5NCLAIMED5NSPENTLIABILITIESWRITTENBACK (312.03) 
&AIRVALUE'AINON)NVESTMENT0ROVISIONONINVESTMENTNET (1.60) 
"AD$EBTS!DVANCES#LAIMSWRITTENOFF 9.07 
0ROVISIONFOR$OUBTFUL$EBTS!DVANCES#LAIMSAND/BSOLESCENCE 1,025.82 
OF3TORESNET
-4-,OSS'AIN ON$ERIVATIVES 66.82 
&OREIGN#URRENCY-ONETARY)TEM4RANSLATION$IFFERENCE!CCOUNT 148.39 
2EMEASUREMENTOF$ElNED"ENElT0LANSTHRU/#) (64.40) 
Interest Income (1,696.41) 
$IVIDEND)NCOME (1,348.63) 
&INANCECOSTS 4,311.03 
8,216.63 4,980.89
/PERATING0ROlTBEFORE7ORKING#APITAL#HANGES 33,343.55 37,545.17
#HANGEIN7ORKING#APITALEXCLUDING#ASH#ASH%QUIVALENTS 
4RADE/THER2ECEIVABLES (13,834.12) 
Inventories (6,176.09) 
4RADEAND/THER0AYABLES 5,615.72 
#HANGEIN7ORKING#APITAL (14,394.49) 
#ASH'ENERATED&ROM/PERATIONS 18,949.06 
,ESS4AXESPAID 5,459.53 
7 Net Cash Flow from Operating Activities (5-6) 13,489.53 26,457.43

B Cash Flow from Investing Activities:

0ROCEEDS FROM SALE OF 0ROPERTY PLANT AND EQUIPMENT4RANSFER OF 1,068.32 
Assets
0URCHASEOF0ROPERTY0LANTAND%QUIPMENT (6,985.67) 
%XPENDITUREON#ONSTRUCTION7ORKIN0ROGRESS (16,438.28) 
0ROCEEDS FROM SALE OF lNANCIAL INSTRUMENTS OTHER THAN WORKING 500.00 
CAPITAL
Investment in subsidiaries (2,516.47) 
0URCHASEOF/THER)NVESTMENTS (513.43) 
2ECEIPTOFGOVERNMENTGRANTS#APITAL'RANT 10.20 
Interest Income received on Investments 1,687.70 
 60th Annual Report 2018-19 177

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)

C Net Cash Flow From Financing Activities:

About IndianOil
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

Directors and others

E1 Cash & Cash Equivalents as at end of the year 38.50 53.48
,ESS
E2 Cash & Cash Equivalents as at the beginning of year 53.48 

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  

Discussion & Analysis

)NTEREST!CCRUEDAND$UENOT$UEONBORROWINGS  
TOTAL (334.17) 348.92

Management’s
 3TATEMENTOF#ASH&LOWSISPREPAREDUSING)NDIRECT-ETHODASPER)NDIAN!CCOUNTING3TANDARD 3TATEMENTOF#ASH&LOWS
 &IGURESFORPREVIOUSYEARHAVEBEENREGROUPEDWHEREVERNECESSARYFORUNIFORMITYINPRESENTATION

For and on Behalf of Board of Directors

Responsibility Report
3D 3D 3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary

Business
$).  $).  !#3 

As per our attached Report of even date Report on Corporate

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
Governance

&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%

3D 3D 3D 3D

(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
Financial financial

0ARTNER 0ARTNER 0ARTNER 0ARTNER

-.O -.O -.O -.O
Statements
Standalone
statements

0LACE.EW$ELHI
$ATE-AY
 178 Indian Oil Corporation Limited 2nd Integrated Annual Report

STANDALONE FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED ON MARCH 31, 2019
A Equity Share Capital
`IN#RORE
2018-19 2017-18
"ALANCEATTHEBEGINNINGOFTHEYEAR 9,478.69 
Changes in during the year
)SSUEOF"ONUS3HARES - 
3HARESBOUGHTBACK (297.65)  
Balance at the end of the year 9,181.04 9,478.69

B Other Equity

Reserves and Surplus

Retained Bond Capital Capital

Earnings Redemption Redemption Reserve
Reserve Reserve

Opening Balance as at April 1, 2017 73,993.02 2,611.11 - 183.08

0ROlTFORTHE9EAR       

Other Comprehensive Income 

     

Total Comprehensive Income 21,507.40 - - -

4RANSFERFROM"OND2EDEMPTION2ESERVE      

5TILIZEDFOR)SSUEOF"ONUS3HARES"UY"ACKINCLUDINGEXPENSESNETOFTAX       

!PPROPRIATIONTOWARDS)NTERIM$IVIDEND       

!PPROPRIATIONTOWARDS&INAL$IVIDEND       

!PPROPRIATIONTOWARDS$IVIDEND$ISTRIBUTION4AX       

!PPROPRIATIONTOWARDS)NSURANCE2ESERVE.ET       

!PPROPRIATIONTOWARDS"OND2EDEMPTION2ESERVE      

!PPROPRIATIONTOWARDS#ORPORATE3OCIAL2ESPONSIBILITY2ESERVENET       

&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS        

&#-)4$!AMORTISEDDURINGTHEYEAR        

4RANSFERREDTO3TATEMENTOF0ROlTAND,OSSRECYCLING        

Closing Balance as at March 31, 2018 78,998.89 2,952.48 - 183.08

 60th Annual Report 2018-19 179

About the
Report
Chairman’s Desk
From the
About IndianOil
`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

Directors and others

203.48 53.72 3.11 (132.42) 18,070.33 3.95 - 94,989.38

Board of
              

          

- - - - 405.53 (169.45) - 21,743.48

               

Directors’
              

Report
              

Discussion & Analysis

              

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

STANDALONE FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED ON MARCH 31, 2019
Reserves and Surplus

Retained Bond Capital Capital

Earnings Redemption Redemption Reserve
Reserve Reserve

0ROlTFORTHE9EAR       

Other Comprehensive Income 

     

Total Comprehensive Income 16,852.25 - - -

4RANSFERFROM"OND2EDEMPTION2ESERVE      

5TILIZEDFOR)SSUEOF"ONUS3HARES"UY"ACKINCLUDINGEXPENSESNETOFTAX      

!PPROPRIATIONTOWARDS)NTERIM$IVIDEND       

!PPROPRIATIONTOWARDS&INAL$IVIDEND       

!PPROPRIATIONTOWARDS$IVIDEND$ISTRIBUTION4AX       

!PPROPRIATIONTOWARDS)NSURANCE2ESERVE.ET       

!PPROPRIATIONTOWARDS"OND2EDEMPTION2ESERVE      

!PPROPRIATIONTOWARDS#ORPORATE3OCIAL2ESPONSIBILITY2ESERVENET        

&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS        

&#-)4$!AMORTISEDDURINGTHEYEAR        

4RANSFERREDTO3TATEMENTOF0ROlTAND,OSSRECYCLING        

Closing Balance as at March 31, 2019 79,533.78 3,152.64 297.65 183.08


2EMEASUREMENTOF$ElNED"ENElT0LANS
 60th Annual Report 2018-19 181

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

              

About IndianOil
           

- - - - (2,403.66) 105.46 15.68 14,569.73

               

              

Description of
              

Capitals
              

              

Directors and others

              

               

Board of
               

             

             

             

Directors’
Report
241.09 53.72 - (35.78) 16,072.20 (43.95) 22.04 99,476.47

Discussion & Analysis

Management’s
For and on Behalf of Board of Directors
3D 3D 3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)

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

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
Financial financial

0LACE.EW$ELHI
$ATE-AY
Statements
Standalone
statements
 182 Indian Oil Corporation Limited 2nd Integrated Annual Report

STANDALONE FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
I. CORPORATE INFORMATION 2. PROPERTY, PLANT AND EQUIPMENT AND
INTANGIBLE ASSETS
 4HElNANCIALSTATEMENTSOFh)NDIAN/IL#ORPORATION,IMITEDv
hTHE#OMPANYvORh)/#,v AREFORTHEYEARENDED-ARCH 2.1 Property, Plant and Equipment (PPE)

4HECOSTOFANITEMOFPROPERTYPLANTANDEQUIPMENTIS
 4HE #OMPANY IS A PUBLIC COMPANY DOMICILED IN )NDIA AND RECOGNIZEDASANASSETIFANDONLYIF
IS INCORPORATED UNDER THE PROVISIONS OF THE #OMPANIES !CT
A  IT IS PROBABLE THAT FUTURE ECONOMIC BENElTS
APPLICABLE IN )NDIA )TS SHARES ARE LISTED ON TWO RECOGNISED
ASSOCIATEDWITHTHEITEMWILLmOWTOTHEENTITYAND
STOCK EXCHANGES IN )NDIA 4HE REGISTERED OFlCE OF THE
#OMPANYISLOCATEDAT)NDIAN/IL"HAVAN'
!LI9AVAR*UNG B  THECOSTOFTHEITEMCANBEMEASUREDRELIABLY
-ARG"ANDRA%AST -UMBAI
00% ARE STATED AT ACQUISITION COST LESS ACCUMULATED
 )/#,IS)NDIAS-AHARATNANATIONALOILCOMPANYWITHBUSINESS DEPRECIATIONAMORTIZATION AND CUMULATIVE IMPAIRMENT
interests straddling the entire hydrocarbon value chain – EXCEPTFREEHOLDLANDWHICHISSTATEDATHISTORICALCOST
FROM 2ElNING 0IPELINE 4RANSPORTATION AND -ARKETING OF
0ETROLEUM0RODUCTSTO2ESEARCH$EVELOPMENT%XPLORATION 4ECHNICAL KNOW
HOWLICENSE FEE RELATING TO PLANTS
0RODUCTION-ARKETINGOF.ATURAL'ASAND0ETROCHEMICALS FACILITIESANDSPECIlCSOFTWARETHATAREINTEGRALPARTOF
THERELATEDHARDWAREARECAPITALISEDASPARTOFCOSTOF
 )NFORMATION ON OTHER RELATED PARTY RELATIONSHIPS OF THE THEUNDERLYINGASSET
#OMPANYISPROVIDEDIN.OTE

3PARE 0ARTS ARE CAPITALIZED WHEN THEY MEET THE
 4HE lNANCIAL STATEMENTS HAVE BEEN APPROVED FOR ISSUE IN DElNITIONOF00%IEWHENTHE#OMPANYINTENDSTO
ACCORDANCE WITH A RESOLUTION OF THE "OARD OF $IRECTORS ON USETHESEDURINGMORETHANAPERIODOFMONTHS
-AY
4HE ACQUISITION OF SOME ITEMS OF 00% ALTHOUGH NOT
II. SIGNIFICANT ACCOUNTING POLICIES DIRECTLYINCREASINGTHEFUTUREECONOMICBENElTSOFANY
1. BASIS OF PREPARATION
1.1 4HE lNANCIAL STATEMENTS HAVE BEEN PREPARED IN
ACCORDANCE WITH THE APPLICABLE )NDIAN !CCOUNTING
3TANDARDS)ND!3 PRESCRIBEDUNDER3ECTIONOFTHE
PARTICULAREXISTINGITEMOF00%MAYBENECESSARYFOR
THE #OMPANY TO OBTAIN THE FUTURE ECONOMIC BENElTS
FROMITSOTHERASSETS3UCHITEMSOF00%ARERECOGNIZED
ASASSETS
/N TRANSITION TO )ND !3 THE #OMPANY HAS ELECTED
#OMPANIES!CTh!CTv READWITHTHE#OMPANIES
TO CONTINUE WITH THE CARRYING VALUE OF ALL OF ITS 00%
)NDIAN!CCOUNTING3TANDARDS 2ULESANDOTHERRELEVANT
RECOGNISED AS AT !PRIL   MEASURED AS PER THE
PROVISIONSOFTHE!CTAND2ULESTHEREUNDERASAMENDED
PREVIOUS '!!0 AND USE THAT CARRYING VALUE AS THE
FROMTIMETOTIME
DEEMEDCOSTOFTHE00%
1.2 4HESTAND
ALONElNANCIALSTATEMENTSHAVEBEENPREPARED
2.2 Capital Work in Progress (CWIP)
ONAHISTORICALCOSTBASISEXCEPTFORTHEFOLLOWINGASSETS
ANDLIABILITIESWHICHHAVEBEENMEASUREDATFAIRVALUE A Construction Period Expenses on Projects

 $ERIVATIVElNANCIALINSTRUMENTS 2EVENUE EXPENSES EXCLUSIVELYATTRIBUTABLETO PROJECTS
INCURRED DURING CONSTRUCTION PERIOD ARE CAPITALIZED

 #ERTAINlNANCIALASSETSANDLIABILITIESMEASUREDAT
(OWEVERSUCHEXPENSESINRESPECTOFCAPITALFACILITIES
FAIR VALUE REFER SERIAL NO  OF ACCOUNTING POLICY
BEING EXECUTED ALONG WITH THE PRODUCTIONOPERATIONS
REGARDINGlNANCIALINSTRUMENTS 
SIMULTANEOUSLYARECHARGEDTOREVENUE
1.3 4HE STAND
ALONE lNANCIAL STATEMENTS ARE PRESENTED IN
&INANCINGCOSTINCURREDDURINGCONSTRUCTIONPERIODON
)NDIAN 2UPEES `  WHICH IS #OMPANYS PRESENTATION
LOANS SPECIlCALLY BORROWED AND UTILIZED FOR PROJECTS
AND FUNCTIONAL CURRENCY AND ALL VALUES ARE ROUNDED TO
IS CAPITALIZED ON QUARTERLY BASIS UP TO THE DATE OF
THE NEAREST #RORES UP TO TWO DECIMALS  EXCEPT WHEN
CAPITALIZATION
OTHERWISEINDICATED
&INANCINGCOSTIFANYINCURREDON'ENERAL"ORROWINGS
USEDFORPROJECTSISCAPITALIZEDATTHEWEIGHTEDAVERAGE
COST4HEAMOUNTOFSUCHBORROWINGSISDETERMINEDON
QUARTERLYBASISAFTERSETTINGOFFTHEAMOUNTOFINTERNAL
ACCRUALS
 60th Annual Report 2018-19 183

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
MADEFORLIKELYDIMINUTIONINVALUEWHEREVERREQUIRED
2.3 Intangible Assets
4ECHNICALKNOW
HOWLICENSEFEERELATINGTOPRODUCTION
PROCESSANDPROCESSDESIGNARERECOGNIZEDAS)NTANGIBLE
!SSETSANDAMORTIZEDONASTRAIGHTLINEBASISOVERTHE
LIFEOFTHEUNDERLYINGPLANTFACILITY
INACCOUNTINGESTIMATES4HEAMORTISATIONEXPENSEON
INTANGIBLEASSETSWITHlNITELIVESISRECOGNISEDINTHE
3TATEMENTOF0ROlTAND,OSSUNLESSSUCHEXPENDITURE
About IndianOil
FORMSPARTOFCARRYINGVALUEOFANOTHERASSET
 'AINS OR LOSSES ARISING FROM DERECOGNITION OF AN
INTANGIBLEASSETAREMEASUREDASTHEDIFFERENCEBETWEEN
THENETDISPOSALPROCEEDSANDTHECARRYINGAMOUNTOF
%XPENDITURE INCURRED ON 2ESEARCH  $EVELOPMENT THEASSETANDARERECOGNISEDINTHE3TATEMENTOF0ROlT
OTHERTHANONCAPITALACCOUNTISCHARGEDTOREVENUE 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!PRILMEASUREDASPER
THE RELATED HARDWARE ARE CAPITALISED AS )NTANGIBLE THEPREVIOUS'!!0ANDUSETHATCARRYINGVALUEASTHE
!SSET AND AMORTISED OVER A PERIOD OF THREE YEARS DEEMEDCOSTOFTHE)NTANGIBLE!SSETS

Directors and others

BEGINNINGFROMTHEQUARTERINWHICHSUCHSOFTWAREIS
CAPITALISED (OWEVER WHERE SUCH COMPUTER SOFTWARE 2.4 Depreciation/Amortization
ISSTILLINDEVELOPMENTSTAGECOSTINCURREDDURINGTHE

Board of
#OSTOF00%NETOFRESIDUALVALUE EXCLUDINGFREEHOLD
DEVELOPMENTSTAGEOFSUCHSOFTWAREAREACCOUNTEDAS
LANDISDEPRECIATEDONSTRAIGHT LINEMETHODASPERTHE
h)NTANGIBLE!SSETS5NDER$EVELOPMENTv
USEFULLIFEPRESCRIBEDIN3CHEDULE))TOTHE#OMPANIES
2IGHT OF WAYS WITH INDElNITE USEFUL LIVES ARE NOT !CTEXCEPTINCASEOFTHEFOLLOWINGASSETS
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
)FNOTTHECHANGEINUSEFULLIFEFROMINDElNITETOlNITE
ASSESSMENT

Discussion & Analysis

ISMADEONAPROSPECTIVEBASIS
B  5SEFUL LIFE OF  YEARS FOR SOLAR POWER PLANT
)NTANGIBLE !SSETS ACQUIRED SEPARATELY ARE MEASURED

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

considered based on the technical assessment

ON STRAIGHT LINE BASIS AND ASSESSED FOR IMPAIRMENT
WHENEVER THERE IS AN INDICATION THAT THE )NTANGIBLE  $EPRECIATION!MORTIZATION IS CHARGED PRO RATA ON
!SSET MAY BE IMPAIRED 4HE AMORTISATION PERIOD QUARTERLY BASIS ON ASSETS FROMUPTO THE QUARTER
AND THE AMORTISATION METHOD FOR AN )NTANGIBLE !SSET OF CAPITALIZATIONSALE DISPOSALOR EARMARKED FOR
Financial financial

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

USEFUL LIFE OR THE EXPECTED PATTERN OF CONSUMPTION CASESWHEREITISCONSIDEREDBASEDONTRANSFERVALUE

 184 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
AGREEDINRESPECTIVEAGREEMENT&URTHERINCASEOF II  4HE PAYMENTS TO THE LESSOR ARE STRUCTURED TO
CATALYSTWITHNOBLEMETALCONTENTRESIDUALVALUEIS
CONSIDEREDBASEDONTHECOSTOFMETALCONTENT
 4HE #OMPANY DEPRECIATES COMPONENTS OF THE
MAIN ASSET THAT ARE SIGNIlCANT IN VALUE AND HAVE
DIFFERENTUSEFULLIVESASCOMPAREDTOTHEMAINASSET
SEPARATELY 4HE #OMPANY DEPRECIATES SPARES OVER
THELIFEOFTHESPAREFROMTHEDATEITISAVAILABLEFOR
INCREASE IN LINE WITH EXPECTED GENERAL INmATION TO
COMPENSATE FOR THE LESSORS EXPECTED INmATIONARY
COSTINCREASES
3.4 Finance Leases as Lessee:
I  &INANCELEASESARECAPITALISEDATTHECOMMENCEMENT
OFTHELEASEATTHEINCEPTIONDATEFAIRVALUEOFTHE
LEASEDPROPERTYORIFLOWERATTHEPRESENTVALUEOF
USE
THEMINIMUMLEASEPAYMENTS,EASEPAYMENTSARE
00%OTHERTHAN,0'#YLINDERSAND0RESSURE2EGULATORS APPORTIONEDBETWEENlNANCECHARGESANDREDUCTION
costing upto `
PERITEMAREDEPRECIATEDFULLYIN OF THE LEASE LIABILITY SO AS TO ACHIEVE A CONSTANT
THEYEAROFCAPITALIZATION&URTHERSPARESCOMPONENTS RATE OF INTEREST ON THE REMAINING BALANCE OF THE
LIKECATALYSTEXCLUDINGNOBLEMETALCONTENTANDMAJOR LIABILITY&INANCECHARGESARERECOGNISEDINlNANCE
OVERHAULINSPECTION ARE ALSO DEPRECIATED FULLY OVER COSTINTHE3TATEMENTOF0ROlTAND,OSSUNLESSTHE
THEIRRESPECTIVEUSEFULLIFE SAME ARE DIRECTLY ATTRIBUTABLE TO QUALIFYING ASSETS
IN WHICH CASE THEY ARE CAPITALIZED IN ACCORDANCE
4HE RESIDUAL VALUES USEFUL LIVES AND METHODS OF
WITHTHE#OMPANYSGENERALPOLICYONTHEBORROWING
DEPRECIATIONOF00%AREREVIEWEDATEACHlNANCIALYEAR
COSTS#ONTINGENTRENTALSARERECOGNISEDASEXPENSE
ENDANDADJUSTEDPROSPECTIVELYIFAPPROPRIATE
INTHEPERIODSINWHICHITISINCURRED
3. LEASES
II  ! LEASED ASSET IS DEPRECIATED OVER THE USEFUL LIFE
3.1 ! LEASE ISCLASSIlEDATTHEINCEPTIONDATEASAlNANCE OF THE ASSET (OWEVER IF THERE IS NO REASONABLE
LEASE OR AN OPERATING LEASE ! LEASE THAT TRANSFERS CERTAINTYTHATTHE#OMPANYWILLOBTAINOWNERSHIPBY
SUBSTANTIALLY ALL THE RISKS AND REWARDS INCIDENTAL TO
OWNERSHIP TO THE #OMPANY IS CLASSIlED AS A lNANCE
LEASE
3.2 Operating Leases as a Lessee:
 ,EASERENTALSARERECOGNIZEDPRORATAONQUARTERLYBASIS
AS EXPENSE ON A STRAIGHT LINE BASIS WITH REFERENCE TO
LEASETERMSANDOTHERCONSIDERATIONSEXCEPTWHERE
0RINCIPALCOMPONENTOFTHELEASERECEIPTSAREADJUSTED
I  !NOTHER SYSTEMATIC BASIS IS MORE REPRESENTATIVE
OFTHETIMEPATTERNOFTHEBENElTDERIVEDFROMTHE
ASSETTAKENONLEASEOR
II  4HE PAYMENTS TO THE LESSOR ARE STRUCTURED TO
INCREASE IN LINE WITH EXPECTED GENERAL INmATION TO
THEENDOFTHELEASETERMTHEASSETISDEPRECIATED
OVERTHESHORTEROFTHEESTIMATEDUSEFULLIFEOFTHE
ASSETANDTHELEASETERM
3.5 Finance Leases as Lessor:
 !LLASSETSGIVENONlNANCELEASEARESHOWNASRECEIVABLES
AT AN AMOUNT EQUAL TO NET INVESTMENT IN THE LEASE
against outstanding receivables and interest income is
accounted by applying the interest rate implicit in the
LEASETOTHENETINVESTMENT
3.6 4HE DETERMINATION OF WHETHER AN ARRANGEMENT IS
OR CONTAINS  A LEASE IS BASED ON THE SUBSTANCE OF
THE ARRANGEMENT AT THE INCEPTION OF THE LEASE 4HE
COMPENSATE FOR THE LESSORS EXPECTED INmATIONARY ARRANGEMENTISORCONTAINSALEASEIFFULlLMENTOFTHE
COSTINCREASES ARRANGEMENTISDEPENDENTONTHEUSEOFASPECIlCASSET
 #ONTINGENTRENTALSARERECOGNISEDASEXPENSEINTHE or assets and the arrangement conveys a right to use
PERIODSINWHICHITISINCURRED THE ASSET OR ASSETS EVEN IF THAT RIGHT IS NOT EXPLICITLY
SPECIlEDINANARRANGEMENT
3.3 Operating Leases as a Lessor:
 &OR ARRANGEMENTS ENTERED INTO PRIOR TO !PRIL  
 2ENTALINCOMEFROMOPERATINGLEASEISRECOGNISEDONA THE#OMPANYHASDETERMINEDWHETHERTHEARRANGEMENT
STRAIGHT
LINE BASIS OVER THE TERM OF THE RELEVANT LEASE CONTAIN LEASE ON THE BASIS OF FACTS AND CIRCUMSTANCES
EXCEPTWHERE
EXISTINGONTHEDATEOFTRANSITION
I  !NOTHER SYSTEMATIC BASIS IS MORE REPRESENTATIVE 4. IMPAIRMENT OF NON-FINANCIAL ASSETS
OFTHETIMEPATTERNOFTHEBENElTDERIVEDFROMTHE
ASSETGIVENONLEASEOR  4HE#OMPANYASSESSESATEACHREPORTINGDATEWHETHER
THERE IS AN INDICATION THAT AN ASSET MAY BE IMPAIRED
)F ANY INDICATION EXISTS OR WHEN ANNUAL IMPAIRMENT
TESTINGFORANASSETISREQUIREDTHE#OMPANYESTIMATES
 60th Annual Report 2018-19 185

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
INDIVIDUALASSETUNLESSTHEASSETDOESNOTGENERATECASH PERIODINWHICHTHESAMEAREINCURRED
INmOWSTHATARELARGELYINDEPENDENTOFTHOSEFROMOTHER
6. FOREIGN CURRENCY TRANSACTIONS

About IndianOil
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 ENDOFREPORTINGPERIODARETRANSLATEDATEXCHANGERATES
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

Directors and others

ARE CORROBORATED BY VALUATION MULTIPLES QUOTED SHARE SUCH AS INVESTMENTS lXED ASSETS ETC  ARE RECORDED
PRICES FOR PUBLICLY TRADED COMPANIES OR OTHER AVAILABLE AT THE EXCHANGE RATE PREVAILING ON THE DATE OF THE
FAIRVALUEINDICATORS TRANSACTIONOTHERTHANTHOSEMEASUREDATFAIRVALUE

Board of
 4HE #OMPANY BASES ITS IMPAIRMENT CALCULATION ON  .ON
MONETARYITEMSMEASUREDATFAIRVALUEINAFOREIGN
DETAILED BUDGETS AND FORECAST CALCULATIONS WHICH ARE
PREPARED SEPARATELY FOR EACH OF THE #OMPANYS #'5S
TO WHICH THE INDIVIDUAL ASSETS ARE ALLOCATED 4HESE
MONETARY ITEMS MEASURED
BUDGETS AND FORECAST CALCULATIONS GENERALLY COVER A
CURRENCYARETRANSLATEDUSINGTHEEXCHANGERATESATTHE
DATEWHENTHEFAIRVALUEISDETERMINED4HEGAINORLOSS
ARISING ON TRANSLATION OF NON
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/#) 

Discussion & Analysis

PROJECTIONSBEYONDPERIODSCOVEREDBYTHEMOSTRECENT ORTHE3TATEMENTOF0ROlTAND,OSSAREALSORECOGNISED
BUDGETSFORECASTS THE #OMPANY EXTRAPOLATES CASH mOW IN/#)ORTHE3TATEMENTOF0ROlTAND,OSSRESPECTIVELY 

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

AMOUNTSINCETHELASTIMPAIRMENTLOSSWASRECOGNISED  %XCHANGEDIFFERENCESONLONG TERMFOREIGNCURRENCYLOANS

4HE REVERSAL IS LIMITED SO THAT THE CARRYING AMOUNT OF RELATINGTOACQUISITIONOFDEPRECIABLEASSETSAREADJUSTED
Governance

THE ASSET DOES NOT EXCEED ITS RECOVERABLE AMOUNT TOTHECARRYINGCOSTOFTHEASSETSANDDEPRECIATEDOVER

NOR EXCEED THE CARRYING AMOUNT THAT WOULD HAVE BEEN THEBALANCELIFEOFTHEASSETS)NOTHERCASESEXCHANGE
DETERMINEDNETOFDEPRECIATIONHADNOIMPAIRMENTLOSS DIFFERENCES ARE ACCUMULATED IN A h&OREIGN #URRENCY
BEENRECOGNISEDFORTHEASSETINPRIORYEARS -ONETARY )TEM 4RANSLATION $IFFERENCE !CCOUNTv AND
Financial financial

AMORTIZED OVER THE BALANCE PERIOD OF SUCH LONG TERM

5. BORROWING COSTS FOREIGN CURRENCY LOAN BY RECOGNISING AS GAIN OR LOSS IN
THE3TATEMENTOF0ROlTAND,OSS
Statements
Standalone
statements

 "ORROWINGCOSTSTHATAREATTRIBUTABLETOTHEACQUISITION
OR CONSTRUCTION OF THE QUALIFYING ASSET ARE CAPITALIZED
 186 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
 II %XCHANGEDIFFERENCESPERTAININGTOLONGTERMFOREIGN 8. PROVISIONS, CONTINGENCIES & CONTIGENT ASSETS
CURRENCY LOANS OBTAINED OR RE
lNANCED ON OR AFTER
8.1 Provisions
!PRIL
0ROVISIONS ARE RECOGNIZED WHEN THE #OMPANY HAS A
 4HEEXCHANGEDIFFERENCESPERTAININGTOLONGTERMFOREIGN
PRESENTOBLIGATIONLEGALORCONSTRUCTIVE ASARESULTOF
CURRENCYLOANSOBTAINEDORRE
lNANCEDONORAFTER!PRIL
APASTEVENTITISPROBABLETHATANOUTmOWOFRESOURCES
AREACCOUNTEDFORINTHE3TATEMENTOF0ROlTAND
EMBODYINGECONOMICBENElTSWILLBEREQUIREDTOSETTLE
,OSS
THEOBLIGATIONANDARELIABLEESTIMATECANBEMADEOF
7. INVENTORIES THEAMOUNTOFTHEOBLIGATION
7.1 Raw Materials & Stock-in-Process 7HENTHE#OMPANYEXPECTSSOMEORALLOFAPROVISION
TO BE RECOVERED FROM A THIRD PARTY A RECEIVABLE IS
2AW MATERIALS INCLUDING CRUDE OIL ARE VALUED AT COST
RECOGNISED AS A SEPARATE ASSET BUT ONLY WHEN IT IS
DETERMINEDONWEIGHTEDAVERAGEBASISORNETREALIZABLE
VIRTUALLYCERTAINANDAMOUNTOFTHERECEIVABLECANBE
VALUEWHICHEVERISLOWER
MEASUREDRELIABLY4HEEXPENSERELATINGTOAPROVISION
3TOCKIN0ROCESSISVALUEDATRAWMATERIALSCOSTPLUS ISPRESENTEDINTHE3TATEMENTOF0ROlTAND,OSSNETOF
CONVERSION COST AS APPLICABLE OR NET REALIZABLE VALUE REIMBURSEMENTIFANY
WHICHEVERISLOWER
)F THE EFFECT OF THE TIME VALUE OF MONEY IS MATERIAL
#RUDEOILIN4RANSITISVALUEDATCOSTORNETREALIZABLE PROVISIONSAREDISCOUNTEDUSINGACURRENTPRE
TAXRATE
VALUEWHICHEVERISLOWER THATREmECTSWHENAPPROPRIATETHERISKSSPECIlCTOTHE
LIABILITY7HENDISCOUNTINGISUSEDTHEINCREASEINTHE
)NITIALCOSTOFINVENTORIESINCLUDESTHETRANSFEROFGAINS PROVISIONDUETOTHEPASSAGEOFTIMEISRECOGNISEDASA
ANDLOSSESONQUALIFYINGCASHmOWHEDGESRECOGNISED lNANCECOST)NCREASEINCARRYINGAMOUNTOFPROVISIONS
IN/#)INRESPECTOFTHEPURCHASESOFRAWMATERIALS WHERE INTEREST RATE IS SPECIlED ARE ACCOUNTED IN
7.2 Finished Products and Stock-in-Trade lNANCE COST TO THE EXTENT OF INCREASE ATTRIBUTABLE TO
PASSAGEOFTIME
&INISHED 0RODUCTS AND 3TOCK IN 4RADE OTHER THAN
LUBRICANTSAREVALUEDATCOSTDETERMINEDON@&IRSTIN Decommissioning Liability
&IRST /UT BASIS OR NET REALIZABLE VALUE WHICHEVER IS  $ECOMMISSIONINGCOSTAREPROVIDEDATTHEPRESENTVALUE
LOWER#OSTOF&INISHED0RODUCTSPRODUCEDISDETERMINED OFEXPECTEDCOSTTOSETTLETHEOBLIGATIONUSINGESTIMATED
BASEDONRAWMATERIALSCOSTANDPROCESSINGCOST CASHmOWSANDARERECOGNISEDASPARTOFTHECOSTOFTHE
,UBRICANTS ARE VALUED AT COST ON WEIGHTED AVERAGE PARTICULAR ASSET 4HE CASH mOWS ARE DISCOUNTED AT A
BASISORNETREALIZABLEVALUEWHICHEVERISLOWER#OST
TAX RATE THAT REmECTS THE RISKS SPECIlC TO
OFLUBRICANTSINTERNALLYPRODUCEDISDETERMINEDBASED
ONCOSTOFINPUTSANDPROCESSINGCOST
)MPORTEDPRODUCTSINTRANSITAREVALUEDATCOSTORNET
REALISABLEVALUEWHICHEVERISLOWER
7.3 Stores and Spares
3TORES AND 3PARES INCLUDING 0ACKING #ONTAINERS IE
CURRENT PRE
THE DECOMMISSIONING LIABILITY 4HE UNWINDING OF THE
DISCOUNTISEXPENSEDASINCURREDANDRECOGNISEDINTHE
3TATEMENT OF 0ROlT AND ,OSS AS A lNANCE COST 4HE
ESTIMATEDFUTURECOSTOFDECOMMISSIONINGAREREVIEWED
ANNUALLYANDADJUSTEDASAPPROPRIATE#HANGESINTHE
ESTIMATED FUTURE COST OR IN THE DISCOUNT RATE APPLIED
AREADDEDTOORDEDUCTEDFROMTHECOSTOFTHEASSET
"ARRELS4INSETC AREVALUEDATWEIGHTEDAVERAGECOST 8.2 Contingent Liabilities and Contingent assets
3PECIlC PROVISION IS MADE IN RESPECT OF IDENTIlED 3HOW
CAUSE NOTICES ISSUED BY VARIOUS 'OVERNMENT
OBSOLETE STORES  SPARES AND CHEMICALS FOR LIKELY !UTHORITIESAREGENERALLYNOTCONSIDEREDASOBLIGATIONS
DIMINUTION IN VALUE &URTHER AN ADHOC PROVISION 
 IS ALSO MADE ON THE BALANCE STORES AND SPARES 7HENTHEDEMANDNOTICESARERAISEDAGAINSTSUCHSHOW
EXCLUDING BARRELS TINS STORES IN TRANSIT CHEMICALS CAUSENOTICESANDAREDISPUTEDBYTHE#OMPANYTHESE
CATALYSTSCRUDEOILANDOWNPRODUCTS TOWARDSLIKELY ARECLASSIlEDASDISPUTEDOBLIGATIONS
DIMINUTIONINTHEVALUE 4HE TREATMENT IN RESPECT OF DISPUTED OBLIGATIONS ARE
3TORESAND3PARESINTRANSITAREVALUEDATCOST ASUNDER
 60th Annual Report 2018-19 187

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 PETROCHEMICALPRODUCTSCRUDEANDGASARERECOGNISEDAT

From the
PROBABLEASPERABOVE APOINTINTIMEGENERALLYUPONDELIVERYOFTHEPRODUCTS
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
)NCASEOFCONSTRUCTIONCONTRACTSREVENUEANDCOSTARE
#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

Directors and others

MANAGEMENTESTIMATE  (OWEVER SALES TAX'OODS AND 3ERVICES 4AX'34  AND
VALUE ADDED TAX 6!4  IS NOT RECEIVED BY THE COMPANY
%STIMATEDAMOUNTOFCONTRACTSREMAININGTOBEEXECUTED
ONITSOWNACCOUNT2ATHERITISTAXCOLLECTEDONVALUE

Board of
ONCAPITALACCOUNTARECONSIDEREDFORDISCLOSURE
ADDED TO THE COMMODITYBY THE SELLERON BEHALFOFTHE
! CONTINGENT ASSET IS DISCLOSED WHERE AN INmOW OF GOVERNMENT!CCORDINGLYITISEXCLUDEDFROMREVENUE
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

Discussion & Analysis

COMPANYALSOEARNSREVENUEFROMOTHERBUSINESSESWHICH
COMPRISES'AS%XPLORATION0RODUCTIONAND/THERS
 2EVENUE IS RECOGNISED WHEN CONTROL OF THE GOODS OR
SERVICESARETRANSFERREDTOTHECUSTOMERATANAMOUNTTHAT
REmECTSTHECONSIDERATIONTOWHICHTHE#OMPANYEXPECTS
TO BE ENTITLED IN EXCHANGE FOR THOSE GOODS OR SERVICES
Revenue is measured based on the consideration
SPECIlED IN A CONTRACT WITH A CUSTOMER AND EXCLUDES
AMOUNTSCOLLECTEDONBEHALFOFTHIRDPARTIES
 4HE #OMPANY HAS GENERALLY CONCLUDED THAT IT IS THE
CONSTRAINEDUNTILITISHIGHLYPROBABLETHATASIGNIlCANT
Management’s
REVENUE REVERSAL IN THE AMOUNT OF CUMULATIVE REVENUE
RECOGNISEDWILLNOTOCCURWHENTHEASSOCIATEDUNCERTAINTY
WITHTHEVARIABLECONSIDERATIONISSUBSEQUENTLYRESOLVED
 4HE #OMPANY PROVIDES VOLUME REBATES TO CERTAIN
CUSTOMERS ONCE THE QUANTITY OF PRODUCTS PURCHASED
Responsibility Report
DURING THE PERIOD EXCEEDS A THRESHOLD SPECIlED IN THE
CONTRACT2EBATESAREOFFSETAGAINSTAMOUNTSPAYABLEBY
THE CUSTOMER 4HE VOLUME REBATES#ASH DISCOUNT GIVE
Business
RISE TO VARIABLE CONSIDERATION 4O ESTIMATE THE VARIABLE
PRINCIPAL IN ITS REVENUE ARRANGEMENTS EXCEPT A FEW CONSIDERATION FOR THE EXPECTED FUTURE REBATESCASH
AGENCYSERVICESBECAUSEITTYPICALLYCONTROLSTHEGOODS DISCOUNT THE #OMPANY APPLIES THE MOST LIKELY AMOUNT Report on Corporate
ORSERVICESBEFORETRANSFERRINGTHEMTOTHECUSTOMER METHODFORCONTRACTSWITHASINGLE
VOLUMETHRESHOLDAND
 4HE#OMPANYCONSIDERSWHETHERTHEREAREOTHERPROMISES THEEXPECTEDVALUEMETHODFORCONTRACTSWITHMORETHAN
Governance

INTHECONTRACTTHATARESEPARATEPERFORMANCEOBLIGATIONS ONE VOLUME THRESHOLD 4HE SELECTED METHOD THAT BEST

TOWHICHAPORTIONOFTHETRANSACTIONPRICENEEDSTOBE PREDICTSTHEAMOUNTOFVARIABLECONSIDERATIONISPRIMARILY
ALLOCATEDEGCUSTOMERLOYALTYPOINTS )NDETERMINING DRIVENBYTHENUMBEROFVOLUMETHRESHOLDSCONTAINEDIN
THE TRANSACTION PRICE FOR THE SALE OF PRODUCTS THE THECONTRACTANDACCORDINGLYTHE#OMPANYRECOGNIZESA
Financial financial

#OMPANYCONSIDERSTHEEFFECTSOFVARIABLECONSIDERATION REFUNDLIABILITYFORTHEEXPECTEDFUTUREREBATES
THEEXISTENCEOFSIGNIlCANTlNANCINGCOMPONENTSNON
cash consideration and consideration payable to the
Statements
Standalone
statements

CUSTOMERIFANY 
 188 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
9.5 Loyalty Points  $EFERREDTAXASSETSARERECOGNISEDFORALLDEDUCTIBLE
TEMPORARY DIFFERENCES THE CARRY FORWARD OF UNUSED
 4HE #OMPANY OPERATES VARIOUS LOYALTY POINT SCHEMES
TAX CREDITS AND ANY UNUSED TAX LOSSES $EFERRED TAX
4HE TRANSACTION PRICE ALLOCATED TO CUSTOMER LOYALTY
ASSETSARERECOGNISEDTOTHEEXTENTTHATITISPROBABLE
points is based on their relative estimated standalone
THAT TAXABLE PROlT WILL BE AVAILABLE AGAINST WHICH
SELLINGPRICEANDTHESAMEISREDUCEDFROMREVENUEFROM
THE DEDUCTIBLE TEMPORARY DIFFERENCES AND THE CARRY
SALEOFGOODS7HILEESTIMATINGSTANDALONESELLINGPRICE
FORWARDOFUNUSEDTAXCREDITSANDUNUSEDTAXLOSSES
OF CUSTOMER LOYALTY POINTS THE LIKELIHOOD OF EXERCISING
CAN BE UTILISED EXCEPT WHEN THE DEFERRED TAX ASSET
THEOPTIONISADJUSTED7HEREVERTHE#OMPANYISACTING
RELATINGTOTHEDEDUCTIBLETEMPORARYDIFFERENCEARISES
ASAGENTINTHISARRANGEMENTTHE#OMPANYRECOGNIZETHE
FROMTHEINITIALRECOGNITIONOFANASSETORLIABILITYIN
revenue on net basis
ATRANSACTIONTHATISNOTABUSINESSCOMBINATIONAND
10. EXCISE DUTY AT THE TIME OF THE TRANSACTION AFFECTS NEITHER THE
ACCOUNTINGPROlTORLOSSNORTAXABLEPROlTORLOSS
 %XCISEDUTYISACCOUNTEDONTHEBASISOFBOTHPAYMENTS
MADE IN RESPECT OF GOODS CLEARED AS ALSO PROVISION  $EFERREDTAXASSETSANDLIABILITIESAREMEASUREDBASED
MADE FOR GOODS LYING IN STOCK 6ALUE OF STOCK INCLUDES ONTAXRATESANDTAXLAWS THATHAVEBEENENACTEDOR
EXCISE DUTY PAYABLEPAID ON lNISHED GOODS WHEREVER SUBSTANTIVELYENACTEDATTHEREPORTINGDATE
APPLICABLE
4HECARRYINGAMOUNTOFDEFERREDTAXASSETSISREVIEWED
11. TAXES ON INCOME ATEACHREPORTINGDATEANDREDUCEDTOTHEEXTENTTHAT
ITISNOLONGERPROBABLETHATSUFlCIENTTAXABLEPROlT
11.1 Current Income Tax WILL BE AVAILABLE TO ALLOW ALL OR PART OF THE DEFERRED
 0ROVISIONFORCURRENTTAXISMADEASPERTHEPROVISIONSOF TAX ASSETS TO BE UTILISED 5NRECOGNISED DEFERRED TAX
THE)NCOME4AX!CT
ASSESSEDATEACHREPORTINGDATEANDARE
 #URRENT INCOME TAX ASSETS AND LIABILITIES ARE MEASURED
ATTHEAMOUNTEXPECTEDTOBERECOVEREDFROMORPAIDTO
THETAXATIONAUTHORITIES4HETAXRATESANDTAXLAWSUSED
to compute the amount are those that are enacted or
ASSETSARERE
RECOGNISEDTOTHEEXTENTTHATITHASBECOMEPROBABLE
THATFUTURETAXABLEPROlTSWILLALLOWTHEDEFERREDTAX
ASSETSTOBERECOVERED
$EFERREDTAXRELATINGTOITEMSRECOGNISEDOUTSIDEPROlT
SUBSTANTIVELYENACTEDATTHEREPORTINGDATE
 #URRENTINCOMETAXRELATINGTOITEMSRECOGNISEDOUTSIDE
PROlTORLOSSISRECOGNISEDOUTSIDEPROlTORLOSSEITHERIN
OTHERCOMPREHENSIVEINCOMEORINEQUITY -ANAGEMENT
PERIODICALLYEVALUATESPOSITIONSTAKENINTHETAXRETURNS
WITH RESPECT TO SITUATIONS IN WHICH APPLICABLE TAX
REGULATIONSARESUBJECTTOINTERPRETATIONANDESTABLISHES
PROVISIONSWHEREAPPROPRIATE
11.2 Deferred Tax
$EFERRED TAX IS PROVIDED USING THE "ALANCE 3HEET
METHOD ON TEMPORARY DIFFERENCES BETWEEN THE TAX
BASES OF ASSETS AND LIABILITIES AND THEIR CARRYING
AMOUNTS FOR lNANCIAL REPORTING PURPOSES AT THE
%MPLOYMENT "ENElTS AND /THER ,ONG 4ERM
REPORTINGDATE
 $EFERREDTAXLIABILITIESARERECOGNISEDFORALLTAXABLE
ORLOSSISRECOGNISEDOUTSIDEPROlTORLOSSEITHERIN
OTHERCOMPREHENSIVEINCOMEORINEQUITY 
$EFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES ARE
OFFSET IF A LEGALLY ENFORCEABLE RIGHT EXISTS TO SET OFF
CURRENT TAX ASSETS AGAINST CURRENT TAX LIABILITIES AND
THE DEFERRED TAXES RELATE TO THE SAME TAXABLE ENTITY
ANDTHESAMETAXATIONAUTHORITY
12. EMPLOYEE BENEFITS
3HORT4ERM"ENElTS
 3HORT4ERM%MPLOYEE"ENElTSAREACCOUNTEDFORINTHE
PERIODDURINGWHICHTHESERVICESHAVEBEENRENDERED
0OST
%MPLOYEE"ENElTS
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
ISNOTABUSINESSCOMBINATIONANDATTHETIMEOFTHE 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
FUNDAREADMINISTEREDTHROUGHRESPECTIVE4RUSTS
C  /BLIGATIONS ON OTHER LONG TERM EMPLOYEE BENElTS
VIZLEAVEENCASHMENTAND,ONG3ERVICE!WARDSARE
PROVIDEDUSINGTHEPROJECTEDUNITCREDITMETHODOF
ACTUARIALVALUATIONMADEATTHEENDOFTHEYEAR/UT
 )NCASEOFGRANTSRELATINGTODEPRECIABLEASSETSTHECOST
OF THE ASSET IS SHOWN AT GROSS VALUE AND GRANT THEREON
IS TREATED AS $EFERRED INCOME WHICH ARE RECOGNIZED AS
INCOME IN THE 3TATEMENT OF 0ROlT AND ,OSS OVER THE
PERIOD AND IN THE PROPORTION IN WHICH DEPRECIATION IS
CHARGED
Description of
OFTHESEOBLIGATIONSLEAVEENCASHMENTOBLIGATIONS 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

Directors and others

SCHEMEFOR0ENSIONBENElTSFORITSEMPLOYEESAND WHICHTHEGRANTSAREINTENDEDTOCOMPENSATE
THECONTRIBUTIONISREMITTEDTOASEPARATE4RUST
 3UBSIDYANDBUDGETARYSUPPORTTOWARDSUNDERRECOVERIES
4ERMINATION"ENElTS

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 SUBJECTTOlNALADJUSTMENTSWHEREVERAPPLICABLE
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

Discussion & Analysis

BENElTLIABILITY ANDTHERETURNONPLANASSETSEXCLUDING GRANT IS RECOGNISED IN h/THER /PERATING 2EVENUESv IN
AMOUNTS INCLUDED IN NET INTEREST ON THE NET DElNED PROPORTIONOFEXPORTOBLIGATIONSACTUALLYFULlLLEDDURING

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
• 4HEDATEOFTHEPLANAMENDMENTORCURTAILMENTAND
• 4HE DATE THAT THE #OMPANY RECOGNISES RELATED
restructuring cost
 .ETINTERESTISCALCULATEDBYAPPLYINGTHEDISCOUNT
RATETOTHENETDElNEDBENElTLIABILITYORASSET4HE
#OMPANY RECOGNISES THE FOLLOWING CHANGES IN THE
NETDElNEDBENElTOBLIGATIONASANEXPENSEINTHE
3TATEMENTOF0ROlTAND,OSS
REGARDEDASAGOVERNMENTGRANT4HELOANORASSISTANCE Report on Corporate
IS INITIALLY RECOGNISED AND MEASURED AT FAIR VALUE AND
THE GOVERNMENT GRANT IS MEASURED AS THE DIFFERENCE
Governance
BETWEEN THE INITIAL CARRYING VALUE OF THE LOAN AND
THE PROCEEDS RECEIVED 4HE LOAN IS SUBSEQUENTLY
measured as per the accounting policy applicable to
lNANCIALLIABILITIES#LASSIlCATIONOFTHEGRANTISMADE
Financial financial
CONSIDERING THE TERMS AND CONDITION OF THE GRANT IE
WHETHERGRANTSRELATESTOASSETSOROTHERWISE
• SERVICE COST COMPRISING CURRENT SERVICE COST PAST

Statements
Standalone
statements

SERVICECOSTGAINSANDLOSSESONCURTAILMENTSAND
NON ROUTINESETTLEMENTSAND
• .ETINTERESTEXPENSEORINCOME
 190 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
14. OIL & GAS EXPLORATION ACTIVITIES
14.1 Pre-Acquisition Cost:
 %XPENDITURE INCURRED BEFORE OBTAINING THE RIGHTS  TO
VALUE OF THE ESTIMATED FUTURE EXPENDITURE !NY CHANGE
INTHEPRESENTVALUEOFTHEESTIMATEDDECOMMISSIONING
EXPENDITURE OTHER THAN THE UNWINDING OF DISCOUNT IS
ADJUSTED TO THE DECOMMISSIONING PROVISION AND THE
EXPLOREDEVELOPANDPRODUCEOILANDGASAREEXPENSED
ASANDWHENINCURRED
14.2 Exploration Stage:
 !CQUISITION COST RELATING TO PROJECTS UNDER EXPLORATION
ARE INITIALLY ACCOUNTED AS h)NTANGIBLE !SSETS UNDER
$EVELOPMENTv4HEEXPENSESONOILANDGASASSETSTHAT
CURRENT
ISCLASSIlEDASINTANGIBLEINCLUDE
ACQUIREDRIGHTSTOEXPLORE 15.2 An asset is treated as current when it is:
EXPLORATORYDRILLINGCOST
 #OST OF 3URVEY AND PROSPECTING ACTIVITIES CONDUCTED IN
THE SEARCH OF OIL AND GAS ARE EXPENSED AS EXPLORATION
COSTINTHEYEARINWHICHTHESEAREINCURRED
CARRYINGVALUEOFTHECORRESPONDINGASSET4HEUNWINDING
OFDISCOUNTONPROVISIONISCHARGEDINTHE3TATEMENTOF
0ROlTAND,OSSASlNANCECOSTS
15. CURRENT VERSUS NON-CURRENT CLASSIFICATION
15.1 4HE #OMPANY PRESENTS ASSETS AND LIABILITIES IN
THE "ALANCE 3HEET BASED ON CURRENTNON
CLASSIlCATION
• %XPECTED TO BE REALISED OR INTENDED TO BE SOLD OR
consumed in normal operating cycle
• (ELDPRIMARILYFORTHEPURPOSEOFTRADING
• %XPECTEDTOBEREALISEDWITHINTWELVEMONTHSAFTER
THEREPORTINGPERIODOR
 )F THE PROJECT IS NOT VIABLE BASED UPON TECHNICAL
FEASIBILITYANDCOMMERCIALVIABILITYSTUDYTHENALLCOST • #ASH OR #ASH %QUIVALENTS UNLESS RESTRICTED FROM
RELATING TO %XPLORATORY 7ELLS ARE EXPENSED IN THE YEAR BEINGEXCHANGEDORUSEDTOSETTLEALIABILITYFORAT
WHENDETERMINEDTOBEDRY LEASTTWELVEMONTHSAFTERTHEREPORTINGPERIOD

 )FTHEPROJECTISPROVEDTOBEVIABLETHENALLCOSTRELATING  !LLOTHERASSETSARECLASSIlEDASNON CURRENT

TODRILLINGOF%XPLORATORY7ELLSSHALLBECONTINUEDTOBE 15.3 A liability is treated as current when:
PRESENTEDASh)NTANGIBLE!SSETSUNDER$EVELOPMENTv
• )T IS EXPECTED TO BE SETTLED IN NORMAL OPERATING
14.3 Development Stage: cycle
 !CQUISITIONCOSTRELATINGTOPROJECTSUNDERDEVELOPMENT • )TISHELDPRIMARILYFORTHEPURPOSEOFTRADING
STAGEAREPRESENTEDASh#APITALWORK IN PROGRESSv • )T IS DUE TO BE SETTLED WITHIN TWELVE MONTHS AFTER
 7HEN A WELL IS READY TO COMMENCE COMMERCIAL THEREPORTINGPERIODOR
PRODUCTION THE CAPITALISED COST CORRESPONDING TO • 4HERE IS NO UNCONDITIONAL RIGHT TO DEFER THE
PROVEDDEVELOPEDOILANDGASRESERVESISRECLASSIlEDAS SETTLEMENTOFTHELIABILITYFORATLEASTTWELVEMONTHS
h#OMPLETEDWELLS0RODUCINGWELLSvFROMh#APITALWORK AFTERTHEREPORTINGPERIOD
IN PROGRESS)NTANGIBLE!SSETUNDER$EVELOPMENTvTOTHE  !LLOTHERLIABILITIESARECLASSIlEDASNON CURRENT
GROSS BLOCK OF ASSETS %XAMPLES OF /IL AND 'AS ASSETS
THAT MIGHT BE CLASSIlED AS 4ANGIBLE !SSETS INCLUDE 16. NON-CURRENT ASSETS HELD FOR SALE
DEVELOPMENT DRILLING COST PIPING AND PUMPS AND 16.1 4HE#OMPANYCLASSIlESNON CURRENTASSETSANDDISPOSAL
PRODUCINGWELLS GROUPSASHELDFORSALEIFTHEIRCARRYINGAMOUNTSWILLBE
14.4 Production Phase recovered principally through a sale rather than through
CONTINUING USE !CTIONS REQUIRED TO COMPLETE THE
 0RODUCTION COST INCLUDE PRE WELL HEAD AND POST WELL SALESHOULDINDICATETHATITISUNLIKELYTHATSIGNIlCANT
HEAD EXPENSES INCLUDING DEPRECIATION AND APPLICABLE CHANGESTOTHESALEWILLBEMADEORTHATTHEDECISIONTO
OPERATING COST OF SUPPORT EQUIPMENT AND FACILITIES ARE SELLWILLBEWITHDRAWN-ANAGEMENTMUSTBECOMMITTED
EXPENSEDOFF TO THE SALE EXPECTEDWITHIN ONE YEAR FROM THEDATE OF
 $EPLETION IS CALCULATED USING THE 5NIT OF 0RODUCTION CLASSIlCATION
METHODBASEDUPONPROVEDANDDEVELOPEDRESERVES 16.2 &ORTHESEPURPOSESSALETRANSACTIONSINCLUDEEXCHANGES
14.5 Abandonment Phase OFNON CURRENTASSETSFOROTHERNON CURRENTASSETSWHEN
THE EXCHANGE HAS COMMERCIAL SUBSTANCE 4HE CRITERIA
 )NCASEOFDEVELOPMENTPRODUCTIONPHASEABANDONMENT FORHELDFORSALECLASSIlCATIONISREGARDEDMETONLYWHEN
DECOMMISSIONING AMOUNT IS RECOGNIZED AT THE PRESENT THEASSETSORDISPOSALGROUPISAVAILABLEFORIMMEDIATE
 60th Annual Report 2018-19 191

About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES

Chairman’s Desk
SALEINITSPRESENTCONDITIONSUBJECTONLYTOTERMSTHAT 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

About IndianOil
CASHmOWSAND
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
 !FTERINITIALMEASUREMENTSUCH&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
CLASSIlCATIONAND ORPREMIUMONACQUISITIONANDFEESORCOSTTHATARE

Directors and others

AN INTEGRAL PART OF THE %)2 4HE %)2 AMORTISATION
• Actions required to complete the plan indicate that
ISINCLUDEDINlNANCEINCOMEINTHEPROlTORLOSS
IT IS UNLIKELY THAT SIGNIlCANT CHANGES TO THE PLAN
4HELOSSESARISINGFROMIMPAIRMENTARERECOGNISED
WILLBEMADEORTHATTHEPLANWILLBEWITHDRAWN

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
THElNANCIALASSETSAND

Discussion & Analysis

17. FINANCIAL INSTRUMENTS
B  4HEASSETSCONTRACTUALCASHmOWSREPRESENTSOLELY
 !lNANCIALINSTRUMENTISANYCONTRACTTHATGIVESRISETO

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 INCOMEIMPAIRMENTLOSSESREVERSALSANDFOREIGN
PLUSINTHECASEOFlNANCIALASSETSNOTRECORDEDATFAIR

Business
EXCHANGEGAINORLOSSINTHE3TATEMENTOF0ROlTAND
VALUE THROUGH PROlT OR LOSS TRANSACTION COST THAT ARE ,OSS/NDERECOGNITIONOFTHEASSETCUMULATIVEGAIN
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

JVs and Associates)

• %QUITY )NSTRUMENTS AT FAIR VALUE THROUGH /THER
#OMPREHENSIVE)NCOME&64/#)  !LL EQUITY INVESTMENTS IN SCOPE OF )ND !3  ARE
Statements
Standalone
statements

MEASURED AT FAIR VALUE 4HE #OMPANY HAS MADE AN

• &INANCIAL!SSETSANDDERIVATIVESATFAIRVALUETHROUGH
irrevocable election to present subsequent changes
PROlTORLOSS&640,
 192 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
IN THE FAIR VALUE IN /THER #OMPREHENSIVE )NCOME 4HE A PASS
THROUGH ARRANGEMENT IT EVALUATES IF AND TO
CLASSIlCATION IS MADE ON INITIAL RECOGNITIONTRANSITION
ANDISIRREVOCABLE
 4HERE IS NO RECYCLING OF THE AMOUNTS FROM /#) TO THE
WHAT EXTENT IT HAS RETAINED THE RISKS AND REWARDS
OF OWNERSHIP 7HEN IT HAS NEITHER TRANSFERRED NOR
RETAINED SUBSTANTIALLY ALL OF THE RISKS AND REWARDS
OF THE ASSET NOR TRANSFERRED CONTROL OF THE ASSET
3TATEMENTOF0ROlTAND,OSSEVENONSALEOFINVESTMENTS
THE#OMPANYCONTINUESTORECOGNISETHETRANSFERRED
B. Equity Investments in Subsidiaries, JVs and Associates ASSET TO THE EXTENT OF THE #OMPANYS CONTINUING
INVOLVEMENT )N THAT CASE THE #OMPANY ALSO
 )NVESTMENTS IN 3UBSIDIARIES *OINT VENTURES AND
!SSOCIATES ARE ACCOUNTED FOR AT COST IN THE lNANCIAL
STATEMENTS AND THE SAME ARE TESTED FOR IMPAIRMENT IN
CASEOFANYINDICATIONOFIMPAIRMENT
C. $IVIDENDINCOMEISRECOGNIZEDINTHE3TATEMENTOF0ROlT
AND,OSSWHENTHE#OMPANYSRIGHTTORECEIVEDIVIDEND
ISESTABLISHED
Debt Instruments and Derivatives at FVTPL
 &640,ISARESIDUALCATEGORYFOR$EBT)NSTRUMENTS!NY
RECOGNISES AN ASSOCIATED LIABILITY 4HE TRANSFERRED
asset and the associated liability are measured on a
BASISTHATREmECTSTHERIGHTSANDOBLIGATIONSTHATTHE
#OMPANYHASRETAINED
 #ONTINUING INVOLVEMENT THAT TAKES THE FORM OF A
GUARANTEE OVER THE TRANSFERRED ASSET IS MEASURED
ATTHELOWEROFTHEORIGINALCARRYINGAMOUNTOFTHE
ASSET AND THE MAXIMUM AMOUNT OF CONSIDERATION
THATTHE#OMPANYCOULDBEREQUIREDTOREPAY
DEBT INSTRUMENT WHICH DOES NOT MEET THE CRITERIA FOR  Impairment of Financial Assets
CATEGORIZATION AS AT AMORTIZED COST OR AS &64/#) IS  )N ACCORDANCE WITH )ND !3  THE #OMPANY APPLIES
CLASSIlEDASAT&640, %XPECTED#REDIT,OSS%#, MODELFORMEASUREMENTAND
 4HIS CATEGORY ALSO INCLUDES DERIVATIVE lNANCIAL RECOGNITIONOFIMPAIRMENTLOSSONTHEFOLLOWINGlNANCIAL
instruments entered into by the Company that are not ASSETSANDCREDITRISKEXPOSURE
designated as hedging instruments in hedge relationships A  &INANCIAL !SSETS THAT ARE $EBT )NSTRUMENTS AND
ASDElNEDBY)ND!3 ARE MEASURED AT AMORTISED COST EG LOANS DEBT
 $EBT )NSTRUMENTS INCLUDED WITHIN THE &640, CATEGORY SECURITIES DEPOSITS TRADE RECEIVABLES AND BANK
AREMEASUREDATFAIRVALUEWITHALLCHANGESRECOGNIZED balance
INTHE3TATEMENTOF0ROlTAND,OSS)NTERESTINCOMEON B  &INANCIAL GUARANTEE CONTRACTS WHICH ARE NOT
such instruments has been presented under interest MEASUREDASAT&640,
INCOME C  ,EASE2ECEIVABLESUNDER)ND!3
 Derecognition 3IMPLIlED!PPROACH
 ! lNANCIAL ASSET OR WHERE APPLICABLE A PART OF A  4HE#OMPANYFOLLOWS@SIMPLIlEDAPPROACHFORRECOGNITION
lNANCIAL ASSET OR PART OF A GROUP OF SIMILAR lNANCIAL OFIMPAIRMENTLOSSALLOWANCEON4RADE2ECEIVABLES
ASSETS ISPRIMARILYDERECOGNISEDIEREMOVEDFROMTHE
"ALANCE3HEET WHEN  4HEAPPLICATIONOFSIMPLIlEDAPPROACHDOESNOTREQUIRE
THE#OMPANYTOTRACKCHANGESINCREDITRISK2ATHERIT
• 4HERIGHTSTORECEIVECASHmOWSFROMTHEASSETHAVE RECOGNISESIMPAIRMENTLOSSALLOWANCEBASEDONLIFETIME
EXPIREDOR %#,S AT EACH REPORTING DATE RIGHT FROM ITS INITIAL
• 4HE #OMPANY HAS TRANSFERRED ITS RIGHTS TO RECEIVE RECOGNITION
CASH mOWS FROM THE ASSET OR HAS ASSUMED AN General Approach
OBLIGATION TO PAY THE RECEIVED CASH mOWS IN FULL
WITHOUTMATERIALDELAYTOATHIRDPARTYUNDERA@PASS
 &OR RECOGNITION OF IMPAIRMENT LOSS ON OTHER lNANCIAL
THROUGH ARRANGEMENT AND EITHER A  THE #OMPANY ASSETS AND RISK EXPOSURE THE #OMPANY DETERMINES
HAS TRANSFERRED SUBSTANTIALLY ALL THE RISKS AND THAT WHETHER THERE HAS BEEN A SIGNIlCANT INCREASE IN
REWARDSOFTHEASSETORB THE#OMPANYHASNEITHER THE CREDIT RISK SINCE INITIAL RECOGNITION )F CREDIT RISK
TRANSFERRED NOR RETAINED SUBSTANTIALLY ALL THE RISKS HASNOTINCREASEDSIGNIlCANTLY
MONTHS%#,ISUSED
ANDREWARDSOFTHEASSETBUTHASTRANSFERREDCONTROL TO PROVIDE FOR IMPAIRMENT LOSS (OWEVER IF CREDIT RISK
OFTHEASSET HAS INCREASED SIGNIlCANTLY LIFETIME %#, IS USED )F IN
A SUBSEQUENT PERIOD CREDIT QUALITY OF THE INSTRUMENT
 7HEN THE #OMPANY HAS TRANSFERRED ITS RIGHTS TO IMPROVES SUCH THAT THERE IS NO LONGER A SIGNIlCANT
RECEIVECASHmOWSFROMANASSETORHASENTEREDINTO INCREASEINCREDITRISKSINCEINITIALRECOGNITIONTHENTHE
 60th Annual Report 2018-19 193

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
THEIRCLASSIlCATIONASDESCRIBEDBELOW
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
 !SAPRACTICALEXPEDIENTTHE#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
/NTHATBASISTHE#OMPANYESTIMATESPROVISIONONTRADE
RECEIVABLESATTHEREPORTINGDATE
 %#,IMPAIRMENTLOSSALLOWANCEORREVERSAL RECOGNIZED
DURING THE PERIOD IS RECOGNIZED AS EXPENSEINCOME
IN THE 3TATEMENT OF 0ROlT AND ,OSS 4HE "ALANCE
FOR
TRADINGANDARE
3HEET PRESENTATION FOR VARIOUS lNANCIAL INSTRUMENTS IS
DESCRIBEDBELOW
• &INANCIAL !SSETS MEASURED AS AT AMORTISED COST
Directors and others
 'AINS OR LOSSES ON LIABILITIES HELD FOR TRADING ARE
RECOGNISEDINTHE3TATEMENTOF0ROlTAND,OSS
Board of
B. Financial liabilities at amortized cost
 &INANCIAL,IABILITIESTHATARENOTHELD
NOTDESIGNATEDASAT&640,AREMEASUREDATAMORTISED
COST AT THE END OF SUBSEQUENT ACCOUNTING PERIODS
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

Discussion & Analysis

CRITERIATHE#OMPANYDOESNOTREDUCEIMPAIRMENT %)2AMORTISATIONPROCESS

Management’s
ALLOWANCEFROMTHEGROSSCARRYINGAMOUNT  !MORTISEDCOSTISCALCULATEDBYTAKINGINTOACCOUNTANY
• &INANCIAL'UARANTEECONTRACTS%#,ISPRESENTEDAS DISCOUNTORPREMIUMONACQUISITIONANDFEESORCOSTTHAT
APROVISIONINTHE"ALANCE3HEETIEASALIABILITY 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
@ACCUMULATEDIMPAIRMENTAMOUNTINTHE/#)
17.2 Financial Liabilities
Initial recognition and measurement.
 &INANCIAL GUARANTEE CONTRACTS ISSUED BY THE #OMPANY
Business
are those contracts that require a payment to be made
TOREIMBURSETHEHOLDERFORALOSSITINCURSBECAUSETHE
SPECIlED DEBTOR FAILS TO MAKE THE PAYMENT WHEN DUE Report on Corporate
IN ACCORDANCE WITH THE TERMS OF A DEBT INSTRUMENT
&INANCIALGUARANTEECONTRACTSARERECOGNISEDINITIALLYAS
 &INANCIAL,IABILITIESARECLASSIlEDATINITIALRECOGNITION
Governance

ALIABILITYATFAIRVALUEADJUSTEDFORTRANSACTIONCOSTTHAT
ASlNANCIALLIABILITIESATFAIRVALUETHROUGHPROlTORLOSS
AREDIRECTLYATTRIBUTABLETOTHEISSUANCEOFTHEGUARANTEE
ANDlNANCIALLIABILITIESATAMORTISEDCOSTASAPPROPRIATE
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
VALUEANDINTHECASEOFLIABILITIESMEASUREDATAMORTISED IMPAIRMENTREQUIREMENTSOF)ND!3ANDTHEAMOUNT
Financial financial

COSTNETOFDIRECTLYATTRIBUTABLETRANSACTIONCOST RECOGNISEDLESSCUMULATIVEAMORTISATION
Statements
Standalone
statements

 4HE #OMPANYS &INANCIAL ,IABILITIES INCLUDE TRADE AND

OTHERPAYABLESLOANSANDBORROWINGSINCLUDINGlNANCIAL
 194 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Derecognition INSTRUMENTS $ERIVATIVES ARE CARRIED AS lNANCIAL ASSETS
WHENTHEFAIRVALUEISPOSITIVEANDASlNANCIALLIABILITIES
 !&INANCIAL,IABILITYISDERECOGNISEDWHENTHEOBLIGATION
WHENTHEFAIRVALUEISNEGATIVE
UNDERTHELIABILITYISDISCHARGEDORCANCELLEDOREXPIRES
7HENANEXISTINGlNANCIALLIABILITYISREPLACEDBYANOTHER Derivative that are designated as Hedge Instrument
FROM THE SAME LENDER ON SUBSTANTIALLY DIFFERENT TERMS
4HE #OMPANY DESIGNATES CERTAIN FOREIGN EXCHANGE
OR THE TERMS OF AN EXISTING LIABILITY ARE SUBSTANTIALLY
FORWARD CONTRACTS FOR HEDGING FOREIGN CURRENCY RISK OF
MODIlED SUCH AN EXCHANGE OR MODIlCATION IS TREATED
AS THE DERECOGNITION OF THE ORIGINAL LIABILITY AND THE
RECOGNITION OF A NEW LIABILITY 4HE DIFFERENCE IN THE
respective carrying amounts is recognised in the
3TATEMENTOF0ROlTAND,OSS
17.3 Embedded Derivatives
 )FTHEHYBRIDCONTRACTCONTAINSAHOSTTHATISA&INANCIAL
RECOGNIZED FOREIGN CURRENCY LOANS AND LIABILITIES 4HE
#OMPANYALSOUNDERTAKESCOMMODITYFORWARDSASHEDGE
INSTRUMENTS FOR COMMODITY PRICE RISKS MARGIN  FOR
HIGHLYPROBABLEFORECASTSALETRANSACTIONS4HE#OMPANY
GENERALLY DESIGNATES THE WHOLE FORWARD CONTRACT AS
HEDGINGINSTRUMENT4HESEHEDGESAREACCOUNTEDFORAS
CASHmOWHEDGES4HESEHEDGINGINSTRUMENTSAREASPER
THEPOLICIESAPPROVEDBYTHE"OARDOF$IRECTORS
!SSETWITHINTHESCOPEOF)ND!3THE#OMPANYDOES
NOT SEPARATE EMBEDDED DERIVATIVES 2ATHER IT APPLIES
THECLASSIlCATIONREQUIREMENTSCONTAINEDIN)ND!3
TO THE ENTIRE HYBRID CONTRACT $ERIVATIVES EMBEDDED IN
ALL OTHER HOST CONTRACTS ARE ACCOUNTED FOR AS SEPARATE
DERIVATIVESANDRECORDEDATFAIRVALUEIFTHEIRECONOMIC
CHARACTERISTICSANDRISKSARENOTCLOSELYRELATEDTOTHOSE
 !T THE INCEPTION OF A HEDGE RELATIONSHIP THE #OMPANY
FORMALLY DESIGNATES AND DOCUMENTS THE HEDGE
RELATIONSHIPTOWHICHTHE#OMPANYWISHESTOAPPLYHEDGE
ACCOUNTING AND THE RISK MANAGEMENT OBJECTIVE AND
STRATEGYFORUNDERTAKINGTHEHEDGE4HEDOCUMENTATION
INCLUDESTHE#OMPANYSRISKMANAGEMENTOBJECTIVEAND
OFTHEHOSTCONTRACTSANDTHEHOSTCONTRACTSARENOTHELD STRATEGY FOR UNDERTAKING HEDGE THE HEDGINGECONOMIC
FOR TRADING OR DESIGNATED AT FAIR VALUE THOUGH PROlT OR RELATIONSHIPTHEHEDGEDITEMORTRANSACTIONTHENATURE
LOSS 4HESE EMBEDDED DERIVATIVES ARE MEASURED AT FAIR OFTHERISKBEINGHEDGEDHEDGERATIOANDHOWTHEENTITY
VALUEWITHCHANGESINFAIRVALUERECOGNISEDINPROlTOR WILLASSESSTHEEFFECTIVENESSOFCHANGESINTHEHEDGING
LOSSUNLESSDESIGNATEDASEFFECTIVEHEDGINGINSTRUMENTS
2EASSESSMENT ONLY OCCURS IF THERE IS EITHER A CHANGE
IN THE TERMS OF THE CONTRACT THAT SIGNIlCANTLY MODIlES
THE CASH mOWS THAT WOULD OTHERWISE BE REQUIRED OR A
RECLASSIlCATIONOFAlNANCIALASSETOUTOFTHEFAIRVALUE
THROUGHPROlTORLOSS
17.4 Offsetting of Financial Instruments
 &INANCIAL !SSETS AND &INANCIAL ,IABILITIES ARE OFFSET
ANDTHENETAMOUNTISREPORTEDINTHE"ALANCE3HEETIF
THEREISACURRENTLYENFORCEABLELEGALRIGHTTOOFFSETTHE
recognised amounts and there is an intention to settle on
INSTRUMENTS FAIR VALUE IN OFFSETTING THE EXPOSURE TO
CHANGES IN THE HEDGED ITEMS FAIR VALUE OR CASH mOWS
ATTRIBUTABLETOTHEHEDGEDRISK
 3UCH HEDGES ARE EXPECTED TO BE HIGHLY EFFECTIVE IN
ACHIEVINGOFFSETTINGCHANGESINFAIRVALUEORCASHmOWS
and are assessed on an ongoing basis to determine
THAT THE HEDGE IS ACTUALLY HAVE BEEN HIGHLY EFFECTIVE
THROUGHOUT THE lNANCIAL REPORTING PERIODS FOR WHICH IT
WASDESIGNATED
 4HE EFFECTIVE PORTION OF CHANGES IN THE FAIR VALUE OF
DERIVATIVESTHATAREDESIGNATEDANDQUALIFYASCASHmOW
HEDGES IS RECOGNIZED IN /THER #OMPREHENSIVE )NCOME
ANETBASISTOREALISETHEASSETSANDSETTLETHELIABILITIES
AND ACCUMULATED UNDER THE HEADING #ASH &LOW (EDGE
SIMULTANEOUSLY
2ESERVE WITHIN %QUITY 4HE GAIN OR LOSS RELATING TO THE
17.5 Derivative Instrument- Initial recognition/subsequent INEFFECTIVE POTION IS RECOGNIZED IMMEDIATELY IN THE
measurement 3TATEMENTOF0ROlTAND,OSSANDINCLUDEDINTHE/THER
)NCOMEOR/THER%XPENSESAS'AINON$ERIVATIVESOR,OSS
 4HE #OMPANY USES DERIVATIVE lNANCIAL INSTRUMENTS ON$ERIVATIVESRESPECTIVELY
SUCHASFORWARDCURRENCYCONTRACTSINTERESTRATESWAPS
AND FORWARD COMMODITY CONTRACTS TO HEDGE ITS FOREIGN  !MOUNTSPREVIOUSLYRECOGNIZEDIN/#)ANDACCUMULATED
CURRENCY RISKS INTEREST RATE RISKS AND COMMODITY PRICE INEQUITYRELATINGTOEFFECTIVEPORTIONARERECLASSIlEDTO
RISKSRESPECTIVELY3UCHDERIVATIVElNANCIALINSTRUMENTS 3TATEMENT OF 0ROlT AND ,OSS IN THE PERIODS WHEN THE
AREINITIALLYRECOGNISEDATFAIRVALUEONTHEDATEONWHICH HEDGED ITEM AFFECTS PROlT OR LOSS IN THE SAME LINE
a derivative contract is entered into and are subsequently ITEMASTHERECOGNIZEDHEDGEDITEMORTREATEDASBASIS
RE
MEASUREDATFAIRVALUE4HEACCOUNTINGFORSUBSEQUENT ADJUSTMENTIFAHEDGEDFORECASTTRANSACTIONSUBSEQUENTLY
CHANGES IN FAIR VALUE OF DERIVATIVES DEPENDS ON THE RESULTSINTHERECOGNITIONOFANON
lNANCIALASSETORNON

DESIGNATIONORNON
DESIGNATIONOFDERIVATIVEASHEDGING lNANCIAL LIABILITY 7HEN A FORECASTED TRANSACTION IS NO
 60th Annual Report 2018-19 195

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 MARKETINTHEMOSTADVANTAGEOUSMARKETFORTHEASSET

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

Directors and others

Commodity contracts that are entered into and continue MAXIMISING THE USE OF RELEVANT OBSERVABLE INPUTS AND
TOBEHELDFORTHEPURPOSEOFTHERECEIPTORDELIVERYOF MINIMISINGTHEUSEOFUNOBSERVABLEINPUTS
ANON lNANCIALITEMINACCORDANCEWITHTHE#OMPANYS

Board of
20.6 !LLASSETSANDLIABILITIESFORWHICHFAIRVALUEISMEASURED
EXPECTEDPURCHASESALEORUSAGEREQUIREMENTSAREHELD
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  ,EVELˆ1UOTEDUNADJUSTED MARKETPRICESINACTIVE

Directors’
DEPOSITS WITH AN ORIGINAL MATURITY OF THREE MONTHS OR MARKETSFORIDENTICALASSETSORLIABILITIES

Report
LESSWHICHARESUBJECTTOANINSIGNIlCANTRISKOFCHANGES
 ,EVEL  ˆ 6ALUATION TECHNIQUES FOR WHICH THE
INVALUE

Discussion & Analysis

LOWEST LEVEL INPUT THAT IS SIGNIlCANT TO THE FAIR VALUE
19. TREASURY SHARES measurement is directly or indirectly observable

Management’s
 0URSUANTTOSCHEMEOFAMALGAMATION)/#3HARES4RUST
HASBEENSETUPBY)/#,FORHOLDINGTREASURYSHARESIN
RELATIONTO)"0AND"20,MERGERS4HESHARESHELDBY
)/#3HARES4RUSTARETREATEDASTREASURYSHARES
 ,EVEL  ˆ 6ALUATION TECHNIQUES FOR WHICH THE
LOWEST LEVEL INPUT THAT IS SIGNIlCANT TO THE FAIR VALUE
measurement is unobservable
 &OR ASSETS AND LIABILITIES THAT ARE RECOGNISED IN THE
Responsibility Report
 /WN EQUITY INSTRUMENTS THAT ARE REACQUIRED TREASURY lNANCIALSTATEMENTSONARECURRINGBASISTHE#OMPANY
SHARES ARERECOGNISEDATCOSTANDDEDUCTEDFROMEQUITY DETERMINES WHETHER TRANSFERS HAVE OCCURRED BETWEEN
.OGAINORLOSSISRECOGNISEDINTHE3TATEMENTOF0ROlT LEVELS IN THE HIERARCHY BY RE
ASSESSING CATEGORISATION

Business
AND,OSSONTHEPURCHASESALEISSUEORCANCELLATIONOF BASEDONTHELOWESTLEVELINPUTTHATISSIGNIlCANTTOTHE
THE#OMPANYSOWNEQUITYINSTRUMENTS FAIRVALUEMEASUREMENTASAWHOLE ATTHEENDOFEACH
REPORTINGPERIOD
20. FAIR VALUE MEASUREMENT Report on Corporate
 )NCASEOF,EVELVALUATIONSEXTERNALVALUERSAREALSO
20.14HE#OMPANYMEASURESlNANCIALINSTRUMENTSSUCHAS INVOLVED IN SOME CASES FOR VALUATION OF ASSETS AND
Governance

DERIVATIVESATFAIRVALUEATEACH"ALANCE3HEETDATE&AIR LIABILITIES SUCH AS UNQUOTED lNANCIAL ASSETS LOANS TO

VALUEISTHEPRICETHATWOULDBERECEIVEDTOSELLANASSET RELATEDPARTIESETC
OR PAID TO TRANSFER A LIABILITY IN AN ORDERLY TRANSACTION
BETWEENMARKETPARTICIPANTSATTHEMEASUREMENTDATE  &ORTHEPURPOSEOFFAIRVALUEDISCLOSURESTHE#OMPANY
HAS DETERMINED CLASSES OF ASSETS AND LIABILITIES ON THE
Financial financial

20.2 4HEFAIRVALUEMEASUREMENTISBASEDONTHEPRESUMPTION BASISOFTHENATURECHARACTERISTICSANDRISKSOFTHEASSET

THAT THE TRANSACTION TO SELL THE ASSET OR TRANSFER THE OR LIABILITY AND THE LEVEL OF THE FAIR VALUE HIERARCHY AS
Statements
Standalone
statements

LIABILITY TAKES PLACE EITHER IN THE PRINCIPAL MARKET FOR EXPLAINEDABOVE
 196 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
21. EARNINGS PER SHARE  ,ESSOR ACCOUNTING UNDER )ND !3  IS SUBSTANTIALLY
UNCHANGED FROM ACCOUNTING UNDER )ND !3  ,ESSORS
 4HE BASIC %ARNINGS 0ER 3HARE h%03v  IS COMPUTED
WILL CONTINUE TO CLASSIFY ALL LEASES USING THE SAME
BY DIVIDING THE NET PROlTLOSS  AFTER TAX FOR THE YEAR
CLASSIlCATIONPRINCIPLEASIN)ND!3ANDDISTINGUISH
ATTRIBUTABLETOTHEEQUITYSHAREHOLDERSBYTHEWEIGHTED
BETWEEN TWO TYPES OF LEASES OPERATING AND lNANCE
AVERAGE NUMBER OF EQUITY SHARES OUTSTANDING DURING
LEASES)ND!3REQUIRESLESSEESANDLESSORSTOMAKE
THE YEAR ADJUSTED FOR BONUS ELEMENTS IN EQUITY SHARES
MOREEXTENSIVEDISCLOSURESTHANUNDER)ND!3
ISSUED DURING THE YEAR AND EXCLUDING TREASURY SHARES
4HE #OMPANY DID NOT HAVE ANY POTENTIALLY DILUTIVE Transition to Ind AS 116
SECURITIESINTHEYEARSPRESENTED
 4HE#OMPANYPLANSTOADOPT)ND!3RETROSPECTIVELY
III. New Standards/amendments and other changes effective WITH THE CUMULATIVE EFFECT OF INITIALLY APPLYING THE
April 1,2018 STANDARDRECOGNIZEDATTHEDATEOFINITIALAPPLICATIONIE
!PRIL4HE#OMPANYWILLNOTRESTATECOMPARATIVE
Ind AS 115, Revenue from Contract with Customers
AMOUNTSFORTHEYEARPRIORTOlRSTADOPTION4HE#OMPANY
 4HE #OMPANY HAS ADOPTED THIS )ND !3 WEF !PRIL 
 4HE EFFECT OF THIS STANDARD ALONG WITH RELEVANT
DISCLOSURESAREPROVIDEDIN.OTE

Amendments to Ind AS 21, The Effects of Changes in
Foreign Exchange Rates
 4HE#OMPANYHASADOPTEDTHEAMENDMENTSWEF!PRIL
PLANSTOELECTFORTHEFOLLOWINGPRACTICALEXPEDIENTS
 .OTAPPLYINGTHESTANDARDTOCONTRACTSTHATWERENOT
PREVIOUSLYIDENTIlEDASCONTAININGALEASEAPPLYING
)ND!3AND
 .OT APPLYING THE STANDARD TO LEASE CONTRACTS FOR
WHICHTHELEASETERMSENDSWITHINMONTHSASOF
4HEEFFECTOFTHISAMENDMENTISNOTMATERIAL THEDATEOFINITIALAPPLICATION
Ind AS-109 Hedge Accounting  !SLESSEETHEIMPACTOF)ND!3ADOPTIONISEXPECTED
TOBEASFOLLOWS
 4HE #OMPANY HAS ADOPTED HEDGE ACCOUNTING WRT
DERIVATIVETRANSACTIONSENTEREDWEF!PRIL4HE Impact on the Balance Sheet as at April, 1 2019:
EFFECT OF THIS ADOPTION ALONG WITH RELEVANT DISCLOSURES
Assets ` crore
AREPROVIDEDIN.OTE

)NCREASEINNON
CURRENTASSETS
RIGHT
OF

IV. Standards issued but not yet effective use assets
 4HE -INISTRY OF #ORPORATE !FFAIRS VIDE ITS NOTIlCATIONS $ECREASEIN0REPAID2ENTALS 
DATED-ARCHHASNOTIlED)ND!3
,EASES Liabilities
AND CERTAIN AMENDMENTS TO EXISTING )ND !3 4HESE Increase in lease obligations 
AMENDMENTS ARE APPLICABLE FROM !PRIL   TO THE Net impact on equity

#OMPANY 4HE #OMPANYS ASSESSMENT OF THE IMPACT
 )MPACT ON THE 3TATEMENT OF 0ROlT AND ,OSS INCREASE
OF THE NEW STANDARDS AND AMENDMENTS TO THE EXTENT
(decrease)) :
APPLICABLEISSETOUTBELOW
Assets ` crore
(1) Ind AS- 116 Leases
)NCREASEIN$EPRECIATIONAND 
 )ND!3REPLACES)ND!3,EASES)TSETSOUTTHE !MORTIZATION
PRINCIPLESFORTHERECOGNITIONMEASUREMENTPRESENTATION $ECREASEIN/THER%XPENSES 
ANDDISCLOSUREOFLEASESANDREQUIRESLESSEESTOACCOUNT /PERATINGPROlT 
FOR ALL LEASES UNDER A SINGLE ON
BALANCE SHEET MODEL )NCREASEIN&INANCECOSTS 
!T THE COMMENCEMENT DATE OF A LEASE A LESSEE WILL
0ROlT"EFORE4AX (100.10)
RECOGNISE A LIABILITY TO MAKE LEASE PAYMENTS IE THE
LEASE LIABILITY  AND AN ASSET REPRESENTING THE RIGHT TO (2) Ind AS-12 Income Taxes
USETHEUNDERLYINGASSETDURINGTHELEASETERMIETHE
 !PPENDIX#
5NCERTAINTYOVER)NCOME4AX4REATMENT
RIGHT
OF
USEASSET ,ESSEESWILLBEREQUIREDTOSEPARATELY
RECOGNISETHEINTERESTEXPENSEONTHELEASELIABILITYAND  4HEAPPENDIXADDRESSESTHEACCOUNTINGFORINCOMETAXES
THEDEPRECIATIONEXPENSEONTHERIGHT
OF
USEASSET4HE WHENTAXTREATMENTSINVOLVEUNCERTAINTYTHATAFFECTSTHE
STANDARDINCLUDESTWORECOGNITIONEXEMPTIONSFORLESSEES APPLICATION OF )ND !3  AND DOES NOT APPLY TO TAXES
nLEASESOFLOW
VALUEASSETSANDSHORT
TERMLEASESIE OR LEVIES OUTSIDE THE SCOPE OF )ND !3  NOR DOES IT
LEASESWITHALEASETERMOFMONTHSORLESS 
 60th Annual Report 2018-19 197

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
 4HEAPPENDIXSPECIlCALLYADDRESSESTHEFOLLOWING
• 7HETHERANENTITYCONSIDERSUNCERTAINTAXTREATMENTS
separately
• 4HE ASSUMPTIONS AN ENTITY MAKES ABOUT THE
EXAMINATIONOFTAXTREATMENTSBYTAXATIONAUTHORITIES
PERIOD AFTER THE PLAN AMENDMENT CURTAILMENT OR
From the
SETTLEMENT USING THE NET DElNED BENElT LIABILITY
ASSET  REmECTING THE BENElTS OFFERED UNDER THE
PLANANDTHEPLANASSETSAFTERTHATEVENTANDTHE
DISCOUNT RATE USED TO REMEASURE THAT NET DElNED
About IndianOil
BENElTLIABILITYASSET 
 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
TAXBASESUNUSEDTAXLOSSESUNUSEDTAXCREDITSAND 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 !NYCHANGEINTHATEFFECTEXCLUDINGAMOUNTSINCLUDED

Capitals
INTHENETINTERESTISRECOGNISEDINOTHERCOMPREHENSIVE
 !N ENTITY HAS TO DETERMINE WHETHER TO CONSIDER EACH INCOME4HESEAMENDMENTSWILLAPPLYONLYTOANYFUTURE
UNCERTAINTAXTREATMENTSEPARATELYORTOGETHERWITHONE PLAN AMENDMENTS CURTAILMENTS OR SETTLEMENTS OF THE

Directors and others

OR MORE OTHER UNCERTAIN TAX TREATMENTS 4HE APPROACH #OMPANY 4HIS AMENDMENT WILL NOT HAVE ANY MATERIAL
THAT BETTER PREDICTS THE RESOLUTION OF THE UNCERTAINTY EFFECTONTHElNANCIALSTATEMENTS
SHOULDBE FOLLOWED4HE#OMPANYWILLAPPLYTHE ABOVE
(4) Amendment to Ind AS 23, Borrowing Costs

Board of
CHANGEFROMITSEFFECTIVEDATE"ASEDONTHEASSESSMENT
DONEBYTHECOMPANYIMPACTOFTHISAPPENDIXISLIKELYTO
BEINSIGNIlCANTONTHElNANCIALSTATEMENTS
Other Amendments
 4HISAMENDMENTCLARIlESTHATANENTITYSHALLRECOGNIZE
THE INCOME TAX CONSEQUENCES OF DIVIDENDS IN PROlT OR
 4HE AMENDMENTS CLARIFY THAT AN ENTITY TREATS AS PART
OF GENERAL BORROWINGS ANY BORROWING ORIGINALLY MADE TO
DEVELOPAQUALIFYINGASSETWHENSUBSTANTIALLYALLOFTHE
ACTIVITIESNECESSARYTOPREPARETHATASSETFORITSINTENDED
USEORSALEARECOMPLETE4HISAMENDMENTWILLNOTHAVE
Directors’
ANYMATERIALEFFECTONTHElNANCIALSTATEMENTS
Report
LOSS OTHER COMPREHENSIVE INCOME OR EQUITY ACCORDING
TO WHERE THE ENTITY ORIGINALLY RECOGNIZED THOSE PAST

Discussion & Analysis

TRANSACTIONS OR EVENTS 4HIS AMENDMENT WILL NOT HAVE
ANYMATERIALEFFECTONTHElNANCIALSTATEMENTS

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
DURINGTHEANNUALREPORTINGPERIODANENTITYISREQUIRED

Business
TO
• $ETERMINECURRENTSERVICECOSTFORTHEREMAINDEROF
THE PERIOD AFTER THE PLAN AMENDMENT CURTAILMENT Report on Corporate
ORSETTLEMENTUSINGTHEACTUARIALASSUMPTIONSUSED
TOREMEASURETHENETDElNEDBENElTLIABILITYASSET 
Governance

REmECTING THE BENElTS OFFERED UNDER THE PLAN AND

THEPLANASSETSAFTERTHATEVENT
Financial financial
Statements
Standalone
statements
 198 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1B : SIGNIFICANT ACCOUNTING ESTIMATES & JUDGEMENTS
4HE PREPARATION OF THE #OMPANYS lNANCIAL STATEMENTS REQUIRES THELEASEDASSET)NADDITIONOTHERINDICATORSSUCHASTHELESSEES
MANAGEMENT TO MAKE JUDGEMENTS ESTIMATES AND ASSUMPTIONS ABILITY TO RENEW LEASE FOR ANOTHER TERM AT SUBSTANTIALLY BELOW
THAT AFFECT THE REPORTED AMOUNTS OF REVENUES EXPENSES ASSETS MARKET RENT LESSEES OPTION TO PURCHASE AT PRICE SIGNIlCANTLY
AND LIABILITIES AND THE ACCOMPANYING DISCLOSURES AND THE BELOWFAIRVALUEAREALSOEXAMINEDFORCLASSIlCATIONOFLANDLEASE
DISCLOSURE OF CONTINGENT LIABILITIES 4HESE INCLUDE RECOGNITION ,EASESNOTMEETINGTHElNANCELEASECRITERIAARECLASSIlEDUNDER
AND MEASUREMENT OF lNANCIAL INSTRUMENTS ESTIMATES OF USEFUL OPERATINGLEASES
LIVES AND RESIDUAL VALUE OF 0ROPERTY 0LANT AND %QUIPMENT AND
Intangible Asset under Development
)NTANGIBLE !SSETS VALUATION OF INVENTORIES MEASUREMENT OF
RECOVERABLE AMOUNTS OF CASH
GENERATING UNITS MEASUREMENT OF !CQUISITIONCOSTSANDDRILLINGOFEXPLORATORYWELLCOSTSARECAPITALIZED
EMPLOYEEBENElTSACTUARIALASSUMPTIONSPROVISIONSETC ASINTANGIBLEASSETUNDERDEVELOPMENTANDAREREVIEWEDATEACH
REPORTING DATE TO CONlRM THAT EXPLORATION DRILLING IS STILL UNDER
5NCERTAINTYABOUTTHESEASSUMPTIONSANDESTIMATESCOULDRESULT
WAY OR WORK HAS BEEN DETERMINEDUNDER WAY TO DETERMINE THAT
IN OUTCOMES THAT REQUIRE A MATERIAL ADJUSTMENT TO THE CARRYING
THEDISCOVERYISECONOMICALLYVIABLEBASEDONARANGEOFTECHNICAL
AMOUNT OF ASSETS OR LIABILITIES AFFECTED IN FUTURE PERIODS 4HE
 COMMERCIAL CONSIDERATIONS AND FOR ESTABLISHING DEVELOPMENT
Company continually evaluates these estimates and assumptions
PLANSANDTIMINGSUFlCIENTREASONABLEPROGRESSISBEINGMADE)F
BASED ON THE MOST RECENTLY AVAILABLE INFORMATION 2EVISIONS
NOFUTUREACTIVITYISPLANNEDONREASONABLEGROUNDSTIMEFRAMES
TO ACCOUNTING ESTIMATES ARE RECOGNIZED PROSPECTIVELY IN THE
Intangible asset under development and property acquisition
3TATEMENTOF0ROlTAND,OSSINTHEPERIODINWHICHTHEESTIMATES
COSTS IS WRITTEN OFF 5PON START OF PRODUCTION FROM lELD AND
AREREVISEDANDINANYFUTUREPERIODSAFFECTED
RECOGNITION OF PROVED RESERVES COST CARRIED AS INTANGIBLE ASSET
JUDGEMENTS UNDER DEVELOPMENT IS TRANSFERRED TO PRODUCING PROPERTIES !LSO
REFER.OTE
FORRELATEDDISCLOSURES
refer Note-34 for related disclosures.
)N THE PROCESS OF APPLYING THE COMPANYS ACCOUNTING POLICIES
MANAGEMENT HAS MADE THE FOLLOWING JUDGEMENTS WHICH HAVE Contingencies
THESIGNIlCANTEFFECTONTHEAMOUNTSRECOGNISEDINTHElNANCIAL
#ONTINGENT LIABILITIES MAY ARISE FROM THE ORDINARY COURSE OF
STATEMENTS
BUSINESS IN RELATION TO CLAIMS AGAINST THE #OMPANY INCLUDING
Materiality
)ND !3 REQUIRES ASSESSMENT OF MATERIALITY BY THE #OMPANY FOR
ACCOUNTINGANDDISCLOSUREOFVARIOUSTRANSACTIONSINTHElNANCIAL
LEGALCONTRACTORLANDACCESSANDOTHERCLAIMS"YTHEIRNATURE
CONTINGENCIESWILLBERESOLVEDONLYWHENONEORMOREUNCERTAIN
FUTURE EVENTS OCCUR OR FAIL TO OCCUR 4HE ASSESSMENT OF THE
EXISTENCE AND POTENTIAL QUANTUM OF CONTINGENCIES INHERENTLY
STATEMENTS!CCORDINGLYTHE#OMPANYASSESSESMATERIALITYLIMITS
INVOLVES THE EXERCISE OF SIGNIlCANT JUDGEMENT AND THE USE OF
FOR VARIOUS ITEMS FOR ACCOUNTING AND DISCLOSURES AND FOLLOWS ON
ESTIMATESREGARDINGTHEOUTCOMEOFFUTUREEVENTS
ACONSISTENTBASIS/VERALLMATERIALITYISALSOASSESSEDBASEDON
VARIOUSlNANCIALPARAMETERSSUCHAS'ROSS"LOCKOFASSETS.ET ESTIMATES AND ASSUMPTIONS
"LOCKOF!SSETS4OTAL!SSETS2EVENUEAND0ROlT"EFORE4AX4HE
4HEKEYASSUMPTIONSCONCERNINGTHEFUTUREANDOTHERKEYSOURCES
MATERIALITYLIMITSAREREVIEWEDANDAPPROVEDBYTHE"OARD
OFESTIMATIONATTHEREPORTINGDATETHATHAVEASIGNIlCANTRISKOF
,EASECLASSIlCATIONINCASEOFLEASEHOLDLAND CAUSINGAMATERIALADJUSTMENTTOTHECARRYINGAMOUNTSOFASSETS
ANDLIABILITIESWITHINTHENEXTlNANCIALYEARAREDESCRIBEDBELOW
4HE #OMPANY HAS OBTAINED VARIOUS LANDS FROM THE GOVERNMENTS
%XISTING CIRCUMSTANCES AND ASSUMPTIONS ABOUT FUTURE
FORTHEPURPOSEOFPLANTSFACILITIESANDOFlCES4HESELANDSARE
DEVELOPMENTS HOWEVER MAY CHANGE DUE TO MARKET CHANGES OR
HAVING VARIOUS TENURES AND AT THE END OF LEASE TERM THE LEASE
CIRCUMSTANCESARISINGTHATAREBEYONDTHECONTROLOFTHECOMPANY
COULDBEEXTENDEDFORANOTHERTERMORTHELANDCOULDBERETURNED
3UCHCHANGESAREREmECTEDINTHEASSUMPTIONSWHENTHEYOCCUR
TOTHEGOVERNMENTAUTHORITY3INCELANDHASANINDElNITEECONOMIC
LIFETHEMANGEMENTHASCONSIDEREDYEARSANDABOVECASESFOR $ElNEDBENElTPLANS/THER,ONGTERMEMPLOYEEBENElTS
lNANCELEASEIFATTHEINCEPTIONOFTHELEASETHEPRESENTVALUEOF
4HE COST OF THE DElNED BENElT PLANS AND OTHER LONG TERM
MINIMUMLEASEPAYMENTSARESUBSTANTIALYEQUALTOFAIRVALUEOF
EMPLOYEEBENElTPLANSAREDETERMINEDUSINGACTUARIALVALUATIONS
LEASEDASSETS&URTHERSCASESBETWEEN
AREALSOEVALUATED
!NACTUARIALVALUATIONINVOLVESMAKINGVARIOUSASSUMPTIONSTHAT
FORlNANCELEASEONTHEBASISOFPRINCIPLETHATPRESENTVALUEOFTHE
MAYDIFFERFROMACTUALDEVELOPMENTSINTHEFUTURE4HESEINCLUDE
MINIMUMLEASEPAYMENTSARESUBSTANTIALLYEQUALTOFAIRVALUEOF
THEDETERMINATIONOFTHEDISCOUNTRATEFUTURESALARYINCREASESAND
 60th Annual Report 2018-19 199

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

About IndianOil
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
QUOTEDPRICESINACTIVEMARKETSTHEIRFAIRVALUEISMEASUREDUSING
VALUATION TECHNIQUES INCLUDING THE$ISCOUNTED#ASH &LOW$#& 
MODEL BASED ON LEVEL  AND LEVEL  INPUTS 4HE INPUTS TO THESE

Directors and others

MODELS ARE TAKEN FROM OBSERVABLE MARKETS WHERE POSSIBLE BUT
WHERE THIS IS NOT FEASIBLE A DEGREE OF JUDGEMENT IS REQUIRED IN
ESTABLISHING FAIR VALUES *UDGEMENTS INCLUDE CONSIDERATIONS OF

Board of
INPUTSSUCHASPRICEESTIMATESVOLUMEESTIMATESRATEESTIMATES
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

Discussion & Analysis

selecting the inputs to the impairment calculation based on
THECOMPANYSPASTHISTORYANDOTHERFACTORSATTHEENDOFEACH

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 2 : PROPERTY, PLANT AND EQUIPMENT
Current Year
`IN#RORE
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
(Refer A&F) (Refer A&F) (Refer B&F)
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
April 1, 2018
Additions during the year            
Gross Block

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&REEHOLDLANDMEASURINGACRESAT-ATHURAAND!GRAREGIONSLANDMEASURINGACRESAPPROX HASBEEN
ACQUIRED BY .(!) AS A PART OF THE .( WIDENING PROJECT FOR WHICH THE DETERMINATION OF VALUE OF COMPENSATION IS PENDING
!CCORDINGLYTHEVALUEOFLANDAMOUNTINGTO`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#OMPANY7$6OFSUCHASSETSIS`70.1 crores
`CRORES 4HISINCLUDES7$6OFASSETSWORTH`7.09 crore `CRORE WHICHARENOTINOPERATIONATPRESENT(OWEVER

Directors and others

CONSIDERINGTHERIGHTONTHEASSETSANDFUTURECOMMERCIALINTERESTOFTHECOMPANYTHESEASSETSARECONTINUEDTOBEREmECTEDAS00%
F. Land and Buildings include `199.83 crore`CRORE INRESPECTOFWHICH4ITLE,EASE$EEDSAREPENDINGFOREXECUTION

Board of
ORRENEWAL
G. &ORDETAILSREGARDINGHYPOTHECATIONPLEDGEOFASSETSREFER.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 

Discussion & Analysis

0LANTAND%QUIPMENT     3,314.70 

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

,AND ,EASEHOLD "0#      0.05  

Buildings (0#"0#/4(%23     33.54 
Governance

0LANTAND%QUIPMENT (0#"0#'3&#)0#,     50.49 

'.2%
2AILWAY3IDINGS (0#"0#     8.78 
Financial financial

$RAINAGE3EWAGE7ATER (0#"0#'3&#     0.40 

Supply
Statements

TOTAL 120.10 23.57 - 96.53 80.53

Standalone
statements
 202 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 2 : PROPERTY, PLANT AND EQUIPMENT (Contd...)
Additions to Gross Block Includes:
`IN#RORE
Asset Particulars Exchange Fluctuation Borrowing Cost
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
,AND &REEHOLD -   -  
,AND ,EASEHOLD -   -  
Buildings 11.18  - 
0LANTAND%QUIPMENT 534.62  17.30 
/FlCE%QUIPMENTS 0.07   - 
4RANSPORT%QUIPMENT -   -  
&URNITURE&IXTURES -   -  
2AILWAY3IDINGS -   -  
$RAINAGE3EWAGE7ATER3UPPLY 24.90  - 
Water Supply
TOTAL 570.77 173.44 17.30 145.70

NOTE - 2.1 : CAPITAL WORK IN PROGRESS

`IN#RORE
Particulars March 31, 2019 March 31, 2018
Construction Work in Progress - Tangible Assets
)NCLUDINGUNALLOCATEDCAPITALEXPENDITUREMATERIALSATSITE
"ALANCEASATBEGINNINGOFTHEYEAR A 9,732.86 
!DD!DDITIONSDURINGTHEYEAR 12,257.78 
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 6,463.11 
15,527.53 9,732.86
,ESS0ROVISIONFOR#APITAL,OSSES 30.89 
15,496.64 9,712.77
Capital Stores
"ALANCEASATBEGINNINGOFTHEYEAR B 2,681.67 
!DD!DDITIONSDURINGTHEYEAR 4,708.43 
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 2,676.75 
4,713.35 2,681.67
,ESS0ROVISIONFOR#APITAL,OSSES 7.60 
4,705.75 2,673.95
Capital Goods in Transit 1,049.95 

Construction Period Expenses pending allocation:

"ALANCEASATBEGINNINGOFTHEYEAR 675.88 
!DD.ETEXPENDITUREDURINGTHEYEAR.OTE  494.02 
1,169.90 1,589.52
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 261.72 
908.18 
TOTAL 22,160.52 13,660.23
!)NCLUDES#APITAL%XPENDITURERELATINGTOONGOING/IL'AS 122.28 
%XPLORATION0RODUCTIONACTIVITIES
")NCLUDES3TOCKLYINGWITH#ONTRACTORS 191.06 
#3PECIlCBORROWINGELIGIBLEFORCAPITALISATION2ATE 5.75% to 8.12% TO
 60th Annual Report 2018-19 203

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 

Directors and others

4ECHNICAL!SSISTANCE&EES 2.31 
%XCHANGE&LUCTUATION 0.18 

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

Discussion & Analysis

Less : Recoveries 10.94 2.66
Net Expenditure during the year 494.02 454.40

Management’s
Responsibility Report
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
 204 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 3 : INTANGIBLE ASSETS
Current Year
`IN#RORE
Right of Way Licenses Computer Software Total

Gross Block as at April 1, 2018 319.55 783.30 119.48 1,222.33

'2/33",/#+

Additions during the year    

4RANSFERSFROM)NTANGIBLE!SSETSUNDER$EVELOPMENT     

$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS     

Gross Block as at March 31, 2019 612.91 847.59 195.69 1,656.19

Amortisation as at April 1, 2018 2.99 106.54 73.13 182.66

!-/24)3!4)/.

Amortisation during the year    

$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS     

!MORTISATIONASAT-ARCH    

Net Block as at March 31, 2019 603.55 687.11 85.95 1,376.61

Previous Year
`IN#RORE
Right of Way Licenses Computer Software Total

Gross Block as at April 1, 2017 259.51 757.38 72.17 1,089.06

'2/33",/#+

Additions during the year    

4RANSFERSFROM)NTANGIBLE!SSETSUNDER$EVELOPMENT    

$EDUCTIONS4RANSFERS2ECLASSIlCATIONS    

Gross Block as at March 31, 2018 319.55 783.30 119.48 1,222.33

Amortisation as at April 1, 2017 0.52 65.45 44.33 110.30

!-/24)3!4)/.

Amortisation during the year    

$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS     

!MORTISATIONASAT-ARCH    

Net Block as at March 31, 2018 316.56 676.76 46.35 1,039.67

 60th Annual Report 2018-19 205

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

Directors and others

`IN#RORE
Particulars March 31, 2019 March 31, 2018

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

Discussion & Analysis

,ESS0ROVISIONFOR,OSS 239.81 
1,438.44 

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 4 : INVESTMENTS `IN#RORE
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
Value Value Loss/ Value Value Value Loss/ Value
Fair Value Fair Value
Adjustment Adjustment

` (` in Crore) (` in Crore) (` in Crore) ` (` in Crore) (` in Crore) (` in Crore)

(1) (2) (1+2) (1) (2) (1+2)

NON-CURRENT
INVESTMENTS:

I In Equity Shares

A In Subsidiaries
(At Cost):

QUOTED:

Chennai Indian  77265200 10 509.33 - 509.33      

0ETROLEUM Rupees
Corporation
Limited

,ANKA)/#0,# 3RI,ANKAN  400000005 10 194.13 - 194.13      

1UOTEDIN Rupees
#OLOMBO3TOCK
%XCHANGE3RI
,ANKA

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

IOCL Singapore 53$ 1 1079991988 1 7,128.82 - 7,128.82  1    

04%,TD

Sub-total: (I)(A) 16,394.28 (568.99) 15,825.29 12,383.15 (568.99) 11,814.16

B In Associates
(At Cost):

QUOTED:

0ETRONET,.' Indian  187500000 10 98.75 - 98.75      

Limited Rupees

UNQUOTED:

!VI /IL)NDIA Indian  4500000 10 4.50 - 4.50      

0RIVATE,IMITED Rupees

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

Sub-total: (I)(B) 129.45 (26.00) 103.45 129.45 (26.00) 103.45

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

` (` in Crore) (` in Crore) (` in Crore) ` (` in Crore) (` in Crore) (` in Crore)

(1) (2) (1+2) (1) (2) (1+2)

About IndianOil
)NDIAN/ILTANKING Indian  494828289 10 723.98 (316.66) 407.32     
,IMITEDFORMERLY Rupees
KNOWNAS)/4
)NFRASTRUCTURE
Energy Services
,IMITED

Indian Oil Indian  840000 10 1.99 (1.99) -      

0ANIPAT0OWER Rupees
Consortium
Limited

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

0ETRONET#) Indian  3744000 10 3.83 (3.83) -      

Directors and others

,IMITEDUNDER Rupees
LIQUIDATION

'REEN'AS Indian  23042250 10 23.04 - 23.04      

Limited Rupees

Board of
IndianOil Indian  25950000 10 73.28 - 73.28      
3KY4ANKING Rupees
0RIVATE,IMITED

3UNTERA.IGERIA .AIRA 1 2500000 1 0.05 - 0.05  1    

,IMITED rupees

$ELHI!VIATION Indian  60680000 10 60.68 - 60.68      

&UEL&ACILITY Rupees
0RIVATE,IMITED

Directors’
Report
Indian Synthetic Indian  222861375 10 222.86 - 222.86      
2UBBERS0RIVATE Rupees
Limited

.0#), )NDIAN/IL Indian  260000 10 0.26 - 0.26      

Discussion & Analysis

.UCLEAR%NERGY Rupees
Corporation
Limited

Management’s
'30,)NDIA Indian  120125030 10 120.13 - 120.13      
'ASNET,IMITED Rupees

'30,)NDIA Indian  99060000 10 99.06 - 99.06      

4RANSCO,IMITED Rupees

Indian Oil Adani Indian  185500000 10 185.50 - 185.50      

Responsibility Report
'AS0RIVATE Rupees
Limited

Mumbai Aviation Indian  48288750 10 48.29 - 48.29      

&UEL&ARM Rupees
&ACILITY0RIVATE

Business
Limited

Kochi Salem Indian  96250000 10 96.25 - 96.25      

0IPELINE0RIVATE Rupees
Limited
Report on Corporate
)NDIAN/IL,.' Indian  5000 10 0.01 - 0.01      
0RIVATE,IMITED Rupees
!LSOREFERPOINT
Governance

NO#OF.OTE


Hindustan Indian  440325000 10 440.33 - 440.33      

5RVARAKAND Rupees
Rasayan Limited

Ratnagiri Indian  50000000 10 50.00 - 50.00      

Financial financial

2ElNERIES Rupees
0ETROCHEMICALS
Limited
Statements
Standalone
statements
 208 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 4 : INVESTMENTS (Contd...) `IN#RORE
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
Value Value Loss/ Value Value Value Loss/ Value
Fair Value Fair Value
Adjustment Adjustment

` (` in Crore) (` in Crore) (` in Crore) ` (` in Crore) (` in Crore) (` in Crore)

(1) (2) (1+2) (1) (2) (1+2)

Indradhanush Indian  5000000 10 5.00 - 5.00        

'AS'RID,IMITED Rupees

Indian Oil Indian - - - - -      

2UCHI"IOFUELS Rupees
,,0#APITAL
&UND UNDER
Insolvency
Resolution
0ROCESS

Sub-total: (I)(C) 2,350.25 (322.48) 2,027.77 2,131.12 (324.08) 1,807.04

Total 18,873.98 (917.47) 17,956.51 14,643.72 (919.07) 13,724.65

Investments in
Subsidiaries,
Associates & JVs
[(I)(A)+(I)(B)+(I)
(C)]

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

6ADODARA%NVIRO Indian  7151 10 - - -        

Channel Limiteda Rupees
&ORMERLY
%FmUENT#HANNEL
0ROJECTS,IMITED

Woodlands Indian  101095 10 0.10 - 0.10      

Multispeciality Rupees
Hospital Limited

3HAMA&ORGE#O Indian  100000 10 - - -        

LimitedbUNDER Rupees
LIQUIDATION

In Consumer
Cooperative
Societies:

Baraunic Indian  250 10 - - -        

Rupees

'UWAHATId Indian  750 10 - - -        

Rupees

Mathurae Indian  200 10 - - -        

Rupees

HaldiaF Indian  1663 10 - - -        

Rupees
 60th Annual Report 2018-19 209

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

` (` in Crore) (` in Crore) (` in Crore) ` (` in Crore) (` in Crore) (` in Crore)

(1) (2) (1+2) (1) (2) (1+2)

About IndianOil
In Indian Oil Indian  375 10 - - -        
Cooperative Rupees
Consumer Stores
,IMITED$ELHIg

Sub-total: (I)(D) 3,176.28 16,126.30 19,302.58 3,176.28 18,043.95 21,220.23

Sub-total: (I) = 22,050.26 15,208.83 37,259.09 17,820.00 17,124.88 34,944.88

[(I)(A)+(I)(B)+(I)
(C)+(I)(D)]

II In Preference

Description of
Shares

Capitals
Investments
at fair value
THROUGHPROlT
and loss

A In Subsidiary

Directors and others

Companies:

UNQUOTED:

Chennai Indian  500000000 10 500.00 58.38 558.38     

Board of
0ETROLEUM Rupees
Corporation
Limited
#UM
Redeemable
.ON#ONVERTIBLE
0REFERENCE
Shares

Sub-total: (II)(A) 500.00 58.38 558.38 500.00 48.38 548.38

Directors’
B In Others

Report
UNQUOTED:

3HAMA&ORGE#O Indian  5000 100 - - -        

Discussion & Analysis

LimitedhUNDER Rupees
LIQUIDATION 
#UMULATIVE
Redeemable

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)

/IL-ARKETING Indian  - - -     

#OMPANIES'/) Rupees
Special Bonds

'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

Sub-total: (III) 2,946.95 (99.51) 2,847.44 3,406.95 (140.48) 3,266.47

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 4 : INVESTMENTS (Contd...) `IN#RORE
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
Value Value Loss/ Value Value Value Loss/ Value
Fair Value Fair Value
Adjustment Adjustment

` (` in Crore) (` in Crore) (` in Crore) ` (` in Crore) (` in Crore) (` in Crore)

(1) (2) (1+2) (1) (2) (1+2)

Unquoted:

)NDIAN/IL,.' Indian  6530 1000000 653.00 21.67 674.67     
0VT,IMITED&ULLY Rupees
and Compulsorily
Convertible
$EBENTURES!LSO
REFERPOINTNO
#OF.OTE

Sub-total: (IV) 653.00 21.67 674.67 326.50 2.71 329.21

Total Other 7,276.23 16,106.84 23,383.07 7,409.73 17,954.56 25,364.29

Investments [(I)
(D) + (II) + (III)
+ (IV)]

Total Non 26,150.21 15,189.37 41,339.58 22,053.45 17,035.49 39,088.94

Current
Investments
(I+II+III+IV)

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:  

Chennai Indian  - - -     

0ETROLEUM Rupees
Corporation
Limited
#UM
Redeemable
.ON#ONVERTIBLE
0REFERENCE
Shares

TOTAL 8,366.02 49.78 8,415.80 8,406.01 (6.69) 8,399.32

 60th Annual Report 2018-19 211

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 

Directors and others

e Investment Amount 2,000 
F Investment Amount 16,630 

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:

Discussion & Analysis

)/#3WEDEN!"  
)ND/IL'LOBAL"6.ETHERLANDS  

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 4 : INVESTMENTS (Contd...)
Note: B
Investment in Oil Marketing Companies GOI Special Bonds consists of:
Nature of Bond Number of Face Value Fair value
Bonds (` in Crore) (` in Crore)
Current investment:
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
Total Current Investments 8366020 8,366.02 8,415.80

Note: C - Other Disclosures

 $URINGTHEYEAR/IL-ARKETING#OMPANIESAND'/)SPECIAL"ONDSOF)NVESTMENTSVALUEOF`200.00 crore and `260.00
crore RESPECTIVELYARERECLASSIlEDFROMNON CURRENTINVESTMENTSTOCURRENTINVESTMENT
 $URINGTHEYEAROUTOFTHETOTALINVESTMENTOF`1,000.00 CroreIN#UM2EDEEMABLE.ON#ONVERTIBLE0REFERENCE3HARESOF
#HENNAI0ETROLEUM#ORPORATION,IMITED`500.00#ROREHASBEENREDEEMED
 /UTOF'OVERNMENT3ECURITIESCLASSIlEDASNON CURRENTTHEFOLLOWINGAREPLEDGEDINFAVOUROF#LEARING#ORPORATIONOF)NDIA,TD
##), FOR,OANSTHROUGH4RI PARTY2EPO3EGMENT42%03 OF##),

` 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"ONDSTHEFOLLOWINGHASBEENEARMARKEDINLINEWITHTHEREQUIREMENTOF#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 

Directors and others

7HICHHAVESIGNIlCANTINCREASE -   -  
IN#REDIT2ISK
Credit Impaired -   2.25 

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

Discussion & Analysis

Credit Impaired -   1.38 
1,907.73 1,949.24 2,345.98 222.21

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 6 : OTHER FINANCIAL ASSETS (Unsecured, Considered Good at amortised cost unless otherwise stated)
` INCRORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Advances for Investments A
Subsidiary Companies -  -  
Amount Recoverable from - - 19,120.96 
Central/State Government
&INANCE,EASE2ECEIVABLES 41.47  18.50 
$EPOSITSFOR,EAVE%NCASHMENT -  -  
&UNDREFER.OTE 
Interest Accrued on Investments/ -   196.35 
"ANK$EPOSITS,OANS
$ERIVATIVEINSTRUMENTSATFAIR -   35.56 
VALUETHROUGHPROlTORLOSS
!DVANCETO%MPLOYEE"ENElTS 141.06  63.56 
4RUSTS&UNDS
REFER.OTE 
Receivables on Agency Sales -   2,511.59 
Others B 19.72  801.07 
,ESS0ROVISIONFORDOUBTFULASSET -   6.21 
19.72 33.99 794.86 1,518.65
TOTAL 202.25 3,764.56 22,741.38 15,291.09
!!DVANCESFOREQUITYPENDING
ALLOTMENT
"-AINLYINCLUDES
!MOUNTHELDWITHBANK - 
FORPURCHASEOFFOREIGN
CURRENCYFORVALUEDATE
!PRIL
)NTERESTRECEIVABLESFROM 544.03 
Air India Limited

NOTE - 7 : INCOME TAX/CURRENT TAX ASSET/(LIABILITY) - NET

` INCRORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Income Tax/Current Tax Asset/(Liability)
- Net
!DVANCEPAYMENTSFOR#URRENT4AX 21,121.87  486.60 
,ESS0ROVISIONS 19,774.02  -  
1,347.85 1,291.33 486.60 2.04
TOTAL 1,347.85 1,291.33 486.60 2.04
)NCLUDESAMOUNTRELATINGTO&RINGE 5.47  2.04 
"ENElT4AX
 60th Annual Report 2018-19 215

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

Directors and others

From Related Parties
5NSECURED#ONSIDERED'OOD 264.05  27.01 

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

Discussion & Analysis

264.05 506.03 2,684.05 1,783.04
Claims Recoverable: A

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

'OLD/THER0RECIOUS-ETALS -   58.94 

,ESS0ROVISIONFOR$IMINUTIONIN -   11.44 
Statements
Standalone
statements

value
- - 47.50 149.66
 216 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 8 : OTHER ASSETS (NON FINANCIAL) (Unsecured, Considered Good unless otherwise stated) (Contd...)
` INCRORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
$EFERRED%XPENSES 718.64  177.77 
0REPAID2ENTALS 1,453.76  52.95 
TOTAL 3,786.73 3,233.35 4,183.98 3,260.56
!)NCLUDES
#USTOMS%XCISE$UTY$%0" -   6.75 
$UTY$RAWBACK#LAIMS
WHICHAREINTHEPROCESS
OFBEINGCLAIMEDWITHTHE
$EPARTMENT
#LAIMSRECOVERABLEFROM -   59.70 
Customs Authorities pending
FORlNALASSESSMENT
SETTLEMENT

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 
3TORES3PARESETC $ 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 
3TORES3PARESETC 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

Directors and others

NOTE - 11 : CASH AND CASH EQUIVALENTS

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 

Discussion & Analysis

#ASH"ALANCES)NCLUDING)MPREST 2.28 
TOTAL 38.50 53.48

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

5NPAID$IVIDEND 40.62 

&RACTIONAL3HARE7ARRANTS 0.03 
# 4HEREEXISTSRESTRICTIONSONBANKINGTRANSACTIONSIN,IBYADUETOPOLITICALUNREST
$ 4HEREEXISTSRESTRICTIONSONREPATRIATIONFROMBANKACCOUNTIN-YANMAR 0.01 
Financial financial
Statements
Standalone
statements
 218 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 13 : ASSETS HELD FOR DISPOSAL
`IN#RORE
Particulars March 31, 2019 March 31, 2018

&REEHOLDLAND A 1.65 

Building 0.32 

0LANTAND%QUIPMENT 224.81 

/FlCE%QUIPMENT B 0.52 

4RANSPORT%QUIPMENT 0.08 

&URNITUREAND&IXTURES 0.02 

TOTAL 227.40 161.68

! 4HE#OMPANYHASSURPLUSLANDATVARIOUSLOCATIONSSUCHAS,0'0LANT$EPOTSAND2/SETCWHICHISUNDERTHEPROCESSOFDISPOSAL

4HEMANAGEMENTINTENDSTOSELLTHELAND.OIMPAIRMENTWASRECOGNISEDONRECLASSIlCATIONOFLANDASHELDFORSALEASTHE#OMPANY
EXPECTSTHATTHEFAIRVALUEESTIMATEDBASEDONTHERECENTMARKETPRICESOFSIMILARPROPERTIESINSIMILARLOCATIONS LESSCOSTSTOSELL
ISHIGHERTHANTHECARRYINGAMOUNT
" )NCLUDESNONCURRENTASSETSRETIREDFROMACTIVEUSEEARLIERUSEDINVARIOUSSEGMENTSANDHELDFORDISPOSALTHROUGHTENDERINGPROCESS
WITHINAYEAR
# $URINGTHEYEARTHECOMPANYHASRECOGNIZEDIMPAIRMENTLOSSOF`150.36 crore`CRORE ONWRITE DOWNOFTHEASSETTO
FAIRVALUELESSCOSTSTOSELLANDTHESAMEHASBEENSHOWNIN0ROVISIONLOSSON/THER!SSETSSOLDWRITTENOFFUNDER@/THER%XPENSES
INTHE3TATEMENTOF0ROlTAND,OSS
 60th Annual Report 2018-19 219

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  

Directors and others

Closing Balance 9414158922 

B. Terms/Rights attached to Equity Shares

Board of
 4HE#OMPANYHASONLYONECLASSOFEQUITYSHARESHAVINGPARVALUEOF`EACHANDISENTITLEDTOONEVOTEPERSHARE4HEDIVIDEND
PROPOSEDBYTHE"OARDOF$IRECTORSISSUBJECTTOTHEAPPROVALOFTHESHAREHOLDERSINTHEENSUING!NNUAL'ENERAL-EETING)NTHE
EVENTOFLIQUIDATIONOFTHECORPORATIONTHEHOLDERSOFEQUITYSHARESWILLBEENTITLEDTORECEIVETHEREMAININGASSETSOFTHE#OMPANY
INPROPORTIONTOTHENUMBEROFEQUITYSHARESHELD

C. Details of shareholders holdings more than 5% shares

Directors’
Report
Name of Shareholder March 31, 2019 March 31, 2018
Number of Percentage of Number of Percentage of

Discussion & Analysis

shares held Holding shares held Holding
4(%02%3)$%.4/&).$)! 4912149459 52.18  

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"ALANCE3HEETDATETHE
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

NOTES TO FINANCIAL STATEMENTS

NOTE - 15 : OTHER EQUITY
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Retained Earnings
General Reserve:
As per last Account 78,998.89 
!DD2EMEASUREMENTOF$ElNED"ENElT0LANS (41.90) 
!DD4RANSFERFROM"OND2EDEMPTION2ESERVE 430.46 
,ESS 5TILIZED FOR )SSUE OF "ONUS 3HARES"UY "ACK OF SHARES ;INCLUDING EXPENSES 4,442.80 
NETOFTAX =
[Includes `CRORE.), TRANSFERREDTO#APITAL2EDEMPTION2ESERVE=
!DD!PPROPRIATIONFROM3URPLUS 4,589.13 
79,533.78 78,998.89
3URPLUS"ALANCEIN3TATEMENTOF0ROlTAND,OSS
0ROlTFORTHE9EAR 16,894.15 
,ESS!PPROPRIATIONS
)NTERIM$IVIDEND 7,775.62 
&INAL$IVIDEND 1,895.88 
$IVIDEND$ISTRIBUTION4AXON
)NTERIM$IVIDEND 1,589.11 
&INAL$IVIDEND 396.18 
)NSURANCE2ESERVE.ET 17.61 
Bond Redemption Reserve 630.62 
#ORPORATE3OCIAL2ESPONSIBILITY2ESERVE.ET - 
'ENERAL2ESERVE 4,589.13 
"ALANCECARRIEDFORWARDTONEXTYEAR -  
79,533.78 78,998.89
Other Reserves
Bond Redemption Reserve
As per last Account 2,952.48 
!DD!PPROPRIATIONFROM3URPLUS 630.62 
,ESS4RANSFERTO'ENERAL2ESERVE 430.46 
3,152.64 2,952.48
Capital Redemption Reserve Account :
As per last Account -  
!DD4RANSFERFROM'ENERAL2ESERVEDURINGTHEYEAR 297.65  
297.65  
Capital Reserve 183.08 
 60th Annual Report 2018-19 221

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

%XPORT0ROlT2ESERVE 53.72 

Corporate Social Responsibility Reserve (refer Note - 45)

Description of
As per Last Account - 

Capitals
!DD!PPROPRIATIONFROM3URPLUS 490.60 
,ESS5TILIZEDDURINGTHEYEAR 490.60 
- -

Directors and others

&OREIGN#URRENCY-ONETARY)TEM4RANSLATION$IFFERENCE!CCOUNT
As per Last Account (45.77) 

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) 

Discussion & Analysis

16,072.20 18,475.86

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 15 : OTHER EQUITY (Contd...)
Nature and Purpose of Reserves
A. Retained Earnings
 4HERETAINEDEARNINGSCOMPRISESOFGENERALRESERVEANDSURPLUSWHICHISUSEDFROMTIMETOTIMETOTRANSFERPROlTSBYAPPROPRIATIONS
2ETAINEDEARNINGSISFREERESERVEOFTHECOMPANYANDISUSEDFORPURPOSESLIKEISSUINGBONUSSHARESBUYBACKOFSHARESANDOTHER
PURPOSESLIKEDECLARING$IVIDENDETC ASPERTHEAPPROVALOF"/$)TINCLUDESTHERE MEASUREMENTOFDElNEDBENElTPLANASPER
ACTUARIALVALUATIONSWHICHWILLNOTBERE CLASSIlEDTOSTATEMENTOFPROlTANDLOSSINSUBSEQUENTPERIODS
B. Bond Redemption Reserve
 !SPER#OMPANIES!CTA"OND2EDEMPTION2ESERVEISREQUIREDTOBECREATEDFORALLBONDSDEBENTURESISSUEDBYTHECOMPANY
ATASPECIlEDPERCENTAGE4HISRESERVEISCREATEDOUTOFAPPROPRIATIONOFPROlTSOVERTHETENUREOFBONDSANDWILLBETRANSFERREDBACK
TOGENERALRESERVEONREPAYMENTOFBONDSFORWHICHITISCREATED
C. Capital Redemption Reserve
 !SPER#OMPANIES!CTCAPITALREDEMPTIONRESERVEISCREATEDWHENCOMPANYPURCHASESITSOWNSHARESOUTOFFREERESERVES
ORSECURITIESPREMIUM!SUMEQUALTOTHENOMINALVALUEOFTHESHARESSOPURCHASEDISTRANSFERREDTOCAPITALREDEMPTIONRESERVE
5TILIZATIONOFTHISRESERVEISGOVERNEDBYTHEPROVISIONSOF#OMPANIES!CT
D. Capital Reserve
 #APITAL2ESERVEWASCREATEDTHRUBUSINESSCOMBINATIONSANDSHALLBEUTILISEDASPERTHEPROVISIONSOF#OMPANIES!CT
E. Insurance Reserve
 )NSURANCE2ESERVEISCREATEDBYTHECOMPANYWITHTHEAPPROVALOF"/$TOMITIGATERISKOFLOSSOFASSETSNOTINSUREDWITHEXTERNAL
INSURANCEAGENCIES`CROREISAPPROPRIATEDBYTHECOMPANYEVERYYEARTOTHISRESERVE4HERESERVEISUTILISEDTOMITIGATEACTUAL
LOSSESBYWAYOFNETAPPROPRIATIONINCASEANYUNINSUREDLOSSISINCURRED
& %XPORT0ROlT2ESERVE
 !MOUNTSETASIDEOUTOFPROlTSFROMEXPORTSFORAVAILINGINCOMETAXBENElTSUS((#OF)NCOME4AX!CTFORTHEASSESSMENTS
YEARS TO #REATIONOFRESERVEFORCLAIMINGDEDUCTIONUS((#WASDISPENSEDFROM!9 ONWARDS4HIS
AMOUNTSHALLBETRANSFERREDTOGENERALRESERVEONCOMPLETIONOFASSESSMENTDISPOSALOFCASE
G. Corporate Social Responsibility Reserve
 #ORPORATE3OCIAL2ESPONSIBILITY#32 2ESERVEISCREATEDFORMEETINGEXPENSESRELATINGTO#32ACTIVITIESINLINEWITH#32POLICYOF
THE#OMPANY$URINGTHEYEARANAMOUNTOF`490.60 crore `CRORE HASBEENAPPROPRIATEDASPERPROVISIONSOFTHE
#OMPANIES!CT/UTOFTOTALAVAILABLEFUNDFOR#32INCLUDINGUNSPENTAMOUNTCARRIEDFORWARDFROMPREVIOUSYEAR ANAMOUNT
OF`490.60 crore`CRORE HASBEENSPENTDURINGTHEYEAR
H. Foreign Currency Monetary Item Translation Difference Account
 4HISRESERVEISCREATEDTOACCUMULATEANDAMORTISEEXCHANGEmUCTUATIONSON,ONG 4ERM-ONETARY)TEMSOTHERTHANTHOSERELATEDTO
DEPRECIABLE00% OVERTHEREMAININGLIFEOFTHESEITEMS4HISISASPERTHETRANSITIONEXEMPTIONTAKENBYTHECOMPANYATTHETIME
OFIMPLEMENTATIONOF)ND!3WHEREINTHECOMPANYHASCHOSENTOCONTINUETHEOLD'!!0PRACTICEFORITEMSUPTO-ARCH
I. Fair value of Equity Instruments
 4HISRESERVEREPRESENTSTHECUMULATIVEEFFECTOFFAIRVALUEmUCTUATIONSOFINVESTMENTSMADEBYTHECOMPANYINEQUITYINSTRUMENTS
OFOTHERENTITIES4HECUMULATIVEGAINORLOSSARISINGONSUCHCHANGESARERECOGNISEDTHRU/THER#OMPREHENSIVE)NCOME/#) AND
ACCUMULATEDUNDERTHISRESERVE4HISWILLNOTBERE CLASSIlEDTOTHESTATEMENTOFPROlTANDLOSSINSUBSEQUENTPERIODS
J. Fair value of Debt Instruments
 4HISRESERVEREPRESENTSTHECUMULATIVEEFFECTOFFAIRVALUEmUCTUATIONSINDEBTINVESTMENTSMADEBYTHECOMPANYWHICHARECLASSIlED
ASAVAILABLEFORSALEINVESTMENTS4HECUMULATIVEGAINORLOSSARISINGONSUCHCHANGESARERECOGNISEDTHRU/THER#OMPREHENSIVE
)NCOME/#) ANDACCUMULATEDUNDERTHISRESERVE4HISAMOUNTWILLBERE CLASSIlEDTOTHESTATEMENTOFPROlTANDLOSSINSUBSEQUENT
PERIODSONDISPOSALOFRESPECTIVEINSTRUMENTS
K. Cash Flow Hedge Reserve
 4HE CASH mOW HEDGING RESERVE REPRESENTS THE CUMULATIVE EFFECTIVE PORTION OF GAINS OR LOSSES ARISING ON CHANGES IN FAIR VALUE OF
DESIGNATEDPORTIONOFHEDGINGINSTRUMENTSENTEREDINTOFORCASHmOWHEDGES4HECUMULATIVEGAINORLOSSARISINGONSUCHCHANGES
ARERECOGNISEDTHRU/THER#OMPREHENSIVE)NCOME/#) ANDACCUMULATEDUNDERTHISRESERVE3UCHGAINSORLOSSESWILLBERECLASSIlED
TOSTATEMENTOFPROlTANDLOSSINTHEPERIODINWHICHTHEHEDGEDITEMOCCURSAFFECTSTHESTATEMENTOFPROlTANDLOSS
 60th Annual Report 2018-19 223

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 &" -   - 

Directors and others

"ANKOF!MERICA
15,159.33 8,502.93 188.96 775.36
Term Loans:

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

Discussion & Analysis

BORROWINGS

#URRENTMATURITIESINCLUDING&INANCE,EASE/BLIGATIONS ARECARRIEDTO.OTE /THER&INANCIAL,IABILITIES

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 2ULESTHE#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

NOTES TO FINANCIAL STATEMENTS

NOTE - 16 : LONG TERM BORROWINGS (At Amortised Cost) (Contd...)
C. Secured Term Loans
1. Security Details for OIDB Loans:
A  &IRST#HARGEONTHEFACILITIESAT0ARADIP2ElNERY/RISSA
B  &IRSTCHARGEONTHEFACILITIESAT"UTADIENE%XTRACTION5NIT0ANIPAT(ARYANA
C  &IRSTCHARGEONTHEFACILITIESAT&##5NITAT-ATHURA2ElNERY5TTAR0RADESH
D  &IRSTCHARGEONTHEFACILITIESAT0ARADIP 2AIPUR 2ANCHI0IPELINE
E  &IRSTCHARGEONTHEFACILITIESAT3-0,3YSTEM
F  &IRSTCHARGEONTHEFACILITIESAT0ARADIP (ALDIA $URGAPUR,0'0IPELINE
2. Loan Repayment Schedule against loans from OIDB (Secured)-Term Loans
Sl. Repayable During Repayable Amount Range of
No. (` in crore) Interest Rate
1     
2     
TOTAL 460.63

D. Finance Lease Obligations

 4HE&INANACE,EASE/BLIGATIONSAREAGAINST!SSETSAQUIREDUNDERlNANCELEASE4HECARRYINGVALUEOFTHESAMEIS`3,387.63 crore
`CRORE 

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

F. Repayment Schedule of Senior Notes (Bank of America)

1 53$-ILLION530RIVATE0LACEMENTBONDSISSUEDINFOURTRANCHESOF53$-ILLIONDT*UNE*ULY!UGUSTANDSEPTEMBER
AREPAYABLEINTHREETRANCHESOF53$-ILLIONEACHON!UGUST!UGUSTAND!UGUST

G. Repayment Schedule of loans from Banks and Financial Institutions

Sl. No. Particulars of Loans Date of drawal Date of Repayment
1 53$-ILLION3YNDICATION,OAN -ARCH
2 53$-ILLION3YNDICATION,OAN -ARCH
3 53$-ILLION3YNDICATION,OAN &EBRUARY
4 53$-ILLION3YNDICATION,OAN $ECEMBER
 53$-ILLION3YNDICATION,OAN $ECEMBER
 53$-ILLION3YNDICATION,OAN $ECEMBER
 53$-ILLION3YNDICATION,OAN $ECEMBER 0AYABLEAFTERYEARS
8 53$-ILLION3YNDICATION,OAN $ECEMBER FROMTHEDATEOFDRAWAL
 53$-ILLION3YNDICATION,OAN $ECEMBER
 53$-ILLION3YNDICATION,OAN $ECEMBER
11 53$-ILLIONSYNDICATIONLOAN 3EPTEMBER
12 53$-ILLIONSYNDICATIONLOAN *ANUARY
13 53$  -ILLION NOW 53$  SYNDICATION LOAN 53$  -ILLION *UNE
REPAIDON3EPTEMBER
 60th Annual Report 2018-19 225

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
!PRILREPAYBLEAFTERYEARS4HElRSTINSTALMENTOFLOANFORTHEPERIOD!PRILTO$ECEMBEROF`CROREHAS
BEENRECEIVEDON*ANUARYANDTHEREAFTER`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 

Directors and others

,IABILITYTO4RUSTSAND/THER&UNDS -   240.64 
Employee Liabilities -   3,367.72 
,IABILITYFOR0URCHASESON!GENCY -   2,504.22 

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 

Discussion & Analysis

THROUGHPROlTANDLOSS
3ECURITY$EPOSITS A 615.20  27,115.35 

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

$EPOSITFREE,0'CONNECTIONS - - - -  

FUNDEDBY#HENNAI0ETROLEUM
#ORPORATION,IMITED
")NCLUDES LIABILITY TOWARDS  
2ENEWABLE 0URCHASE /BLIGATION
Financial financial

20/  AFTER CONSIDERING CREDITS

FROMRENEWABLESOURCESANDOFFSET
Statements
Standalone
statements

FOR2ENEWABLE%NERGY#ERTIlCATES
2%#S GENERATED
 226 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 18 : PROVISIONS
` INCRORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
0ROVISIONFOR%MPLOYEE"ENElTS 879.04  122.09 
REFER.OTE 
$ECOMMISSIONING,IABILITY A 4.62  -  
#ONTINGENCIESFORPROBABLE B -   11,452.36 
obligations
,ESS$EPOSITS -   1,436.56 
- - 10,015.80 13,868.57
TOTAL 883.66 2,023.32 10,137.89 14,161.60

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     

Addition includes Reversal includes

CAPITALIZED  
INCLUDEDIN2AW-ATERIAL 
INCLUDEDIN&INANCE#OST 
INCLUDEDIN/THER%XPENSES 
!DJUSTEDAGAINST$EPOSITS0AID 

%XPECTEDTIMINGOFOUTmOWISNOTASCERTAINABLEATTHISSTAGETHEMATTERSBEINGUNDERDISPUTECONTINGENT
 60th Annual Report 2018-19 227

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)

Directors and others

-4-ON(EDGING)NSTRUMENTS      (11.85)
&AIRVALUEOFDEBTINSTRUMENTS     5.76

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 :

Discussion & Analysis

2018-19 (%) 2017-18 (%)
Applicable tax rate 34.944 34.608

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 20 : OTHER LIABILITIES (NON FINANCIAL)
` INCRORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
$EFERRED)NCOME 5.57  1.81 
(refer Note - 46)
'OVERNMENT'RANTSREFER.OTE  1,568.91  120.57 
Statutory Liabilities -   7,319.11 
!DVANCESFROM#USTOMERS 23.61   3,766.82 
Others A -   872.19 
TOTAL 1,598.09 1,355.16 12,080.50 11,681.68
!)NCLUDESLIABILITYTOWARDS&LEET#USTOMERS 797.01 

NOTE - 21 : BORROWINGS - CURRENT

`IN#RORE
Particulars March 31, 2019 March 31, 2018
SECURED LOANS
Loans Repayable on Demand
From Banks: A
7ORKING#APITAL$EMAND,OAN 3,880.87 
Cash Credit 3,392.64 
7,273.51 
From Others:
,OANSTHROUGH4RI 0ARTY2EPO3EGMENT42%03 OF#LEARING B 2,587.53 
#ORPORATIONOF)NDIA,TD##),
Total Secured Loans 9,861.04 9,085.95
UNSECURED LOANS
Loans Repayable on Demand
From Banks/Financial Institutions
)N&OREIGN#URRENCY 14,138.83 
In Rupee 1,176.17 
15,315.00 
From Others
#OMMERCIAL0APERS 23,417.51 
Total Unsecured Loans 38,732.51 27,722.08
TOTAL SHORT-TERM BORROWINGS 48,593.55 36,808.03

! !GAINST HYPOTHECATION BY WAY OF lRST PARI PASSU CHARGE ON 2AW -ATERIALS &INISHED 'OODS 3TOCK IN 4RADE 4RADE 2ECEIVABLES
/UTSTANDINGMONIES2ECEIVABLES#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

NOTE - 23 : REVENUE FROM OPERATIONS

`IN#RORE
Particulars 2018-19 2017-18

Description of
3ALEOF0RODUCTSAND#RUDE 6,08,378.66 

Capitals
,ESS$ISCOUNTS 12,158.70 
3ALES.ETOF$ISCOUNTS 5,96,219.96 
3ALEOF3ERVICES 131.39 

Directors and others

/THER/PERATING2EVENUES.OTEÑÑ 5,001.58 
6,01,352.93 5,03,157.04

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

Discussion & Analysis

`IN#RORE
Particulars 2018-19 2017-18

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

2EVENUE'RANTS 210.78 

#OMMODITY(EDGING'AIN.ET 27.58  
4ERMINALLING#HARGES 83.13 
Other Miscellaneous Income 592.65 
Financial financial

TOTAL 5,001.58 5,660.45

Statements
Standalone
statements
 230 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 24 : OTHER INCOME
`IN#RORE
Particulars 2018-19 2017-18
Interest on: A
&INANCIALITEMS
$EPOSITSWITH"ANKS 19.52 
Customers Outstandings 423.83 
/IL#OMPANIES'/)30,"ONDS/THER)NVESTMENTS 914.04 
/THER&INANCIAL)TEMS 239.68 
4OTALINTERESTON&INANCIALITEMS 1,597.07 
.ON &INANCIALITEMS 99.34 
1,696.41 1,782.03
Dividend: B
&ROM2ELATED0ARTIES 488.45 
&ROM/THER#OMPANIES 860.18 
1,348.63 1,096.62
0ROlTON3ALEOF)NVESTMENTS.ET C - 
&AIRVALUE'AINON)NVESTMENT0ROVISION7RITTEN"ACK.ET 1.60 
%XCHANGE&LUCTUATIONS.ET - 
'AINON$ERIVATIVES 0.32 
/THER.ON/PERATING)NCOME 81.55 
TOTAL 3,128.51 3,414.62

!)NCLUDES4AX$EDUCTEDAT3OURCE 24.62 

!)NCLUDESINTERESTRECEIVEDUNDERSECTION!OFTHE)NCOME4AX!CT 90.14 
!)NCLUDEINTERESTON
Current Investments 644.36 
.ON #URRENT)NVESTMENTS 269.68 
!4OTAL INTEREST INCOME CALCULATED USING THE EFFECTIVE INTEREST METHOD  FOR
lNANCIALASSETS
)NRELATIONTO&INANCIALASSETSCLASSIlEDATAMORTISEDCOST 683.03 
)NRELATIONTO&INANCIALASSETSCLASSIlEDAT&6/#) 874.79 
)NRELATIONTO&INANCIALASSETSCLASSIlEDAT&640, 39.25 
"$IVIDEND)NCOMECONSISTSOF$IVIDENDON
Current Investments 17.44 
.ON #URRENT)NVESTMENTS 1,331.19 
"$IVIDENDON.ON#URRENT)NVESTMENT)NCLUDES$IVIDENDFROM3UBSIDIARIES 230.64 
#)NCLUDES'AIN,OSS RECLASSIlEDFROM&AIR6ALUEOF$EBT)NSTRUMENTS2ESERVE - 

NOTE - 25 : COST OF MATERIALS CONSUMED

`IN#RORE
Particulars 2018-19 2017-18
/PENING3TOCK 25,743.40 
!DD0URCHASES 2,72,295.71 
2,98,039.11 2,14,562.65
,ESS#LOSING3TOCK 28,359.50 
TOTAL 2,69,679.61 1,88,819.25
 60th Annual Report 2018-19 231

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)

Directors and others

NOTE - 27: EMPLOYEE BENEFITS EXPENSE

Board of
`IN#RORE
Particulars 2018-19 2017-18
3ALARIES7AGES"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

Discussion & Analysis

! )NCLUDES`11.62 crore`CRORE TOWARDSCOMPENSATIONTOEXECUTIVESFORWORKINGINSHIFTDUTYINTHEPLANTOPERATIONAREA

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
COMMERCIALPRODUCTIONWHERETHECOMPANYHASTAKENUPTHEMATTERWITH-/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

NOTES TO FINANCIAL STATEMENTS

NOTE - 28 : FINANCE COSTS
`IN#RORE
Particulars 2018-19 2017-18
Interest Payments on Financial items:
Working Capital Loans:
"ANK"ORROWINGS 1,026.57 
"ONDS$EBENTURES 65.77  
Others 472.98 
1,565.32 467.33
Other Loans:
"ANK"ORROWINGS 381.36 
"ONDS$EBENTURES 579.87 
Others 462.72 
1,423.95 1,484.11
5NWINDINGOF$ISCOUNT 44.85 
Others 17.43 
3,051.55 2,089.51
Interest Payments on Non Financial items:
5NWINDINGOF$ISCOUNT 0.04 
Others A 446.93 
446.97 1,113.64
3,498.52 
/THER"ORROWING#OST 16.95 
!PPLICABLE.ET'AIN ,OSSON&OREIGN#URRENCY4RANSACTIONSAND4RANSLATION 795.56 
TOTAL 4,311.03 3,482.71

! -AINLYINCLUDES
)NTERESTON%NTRY4AX,IABILITY  
)NTERESTEXPENSESUS"AND#  
" 4OTALINTERESTEXPENSECALCULATEDUSINGTHEEFFECTIVEINTERESTMETHOD FORlNANCIALLIABILITIESTHAT  
ARENOTATFAIRVALUETHROUGHPROlTORLOSS

NOTE - 29 : OTHER EXPENSES

`IN#RORE
Particulars 2018-19 2017-18
Consumption:
A 3TORES3PARESAND#ONSUMABLES 1,664.24 
B 0ACKAGES$RUM3HEETS 512.62 
2,176.86 1,900.18
0OWER&UEL 26,100.56 
,ESS&UELFROMOWNPRODUCTION 19,827.83 
6,272.73 4,776.50
4HROUGHPUT0ROCESSING"LENDING&EES2OYALTYAND/THER#HARGES 1,587.71 
/CTROI/THER,EVIESAND)RRECOVERABLETAXES 1,659.75 

Repairs and Maintenance

I 0LANT%QUIPMENT 3,065.58 
II "UILDINGS 356.42 
III /THERS 503.71 
3,925.71 3,644.70
&REIGHT4RANSPORTATION#HARGESAND$EMURRAGE 13,310.01 
/FlCE!DMINISTRATION3ELLINGAND/THER%XPENSES.OTEÑÑ 8,909.50 
TOTAL 37,842.27 31,649.10
,ESS#OMPANYgSUSEOFOWN0RODUCTSAND#RUDE 802.75 
TOTAL (Net) 37,039.52 31,026.78
 60th Annual Report 2018-19 233

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 

Directors and others

%LECTRICITY7ATER 386.34 
"ANK#HARGES 33.07 
!DVANCES#LAIMSWRITTENOFF 5.78 

Board of
0ROVISION,OSSON!SSETSSOLDORWRITTENOFF.ET 152.87 
4ECHNICAL!SSISTANCE&EES 34.39 
%XCHANGE&LUCTUATIONNET 1,503.15  
0ROVISIONFOR$OUBTFUL$EBTS!DVANCES#LAIMS#7)03TORESETC 1,084.75 
3ECURITY&ORCE%XPENSES 768.75 

Directors’
Report
3ALES0ROMOTION%XPENSES)NCLUDING#OMMISSION 469.49 
(ANDLING%XPENSES 541.31 

Discussion & Analysis

#OMMODITY(EDGING,OSSES.ET - 
%XPLORATION0RODUCTION#OST 98.15 

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

0OLLUTION#ONTROL%XPENSES 81.82 

Governance

-ISCELLANEOUS%XPENSES 434.00 

TOTAL 8,909.50 5,989.35
! %XPENSES )NCLUDES EXPENDITURE ON 0UBLIC 2ELATIONS AND 0UBLICITY AMOUNTING TO `119.04 crore  ` CRORE  WHICH IS
INCLUSIVEOF`21.13 crore`CRORE ONACCOUNTOF3TAFFAND%STABLISHMENTAND`97.91 crore`CRORE FOR
Financial financial

PAYMENTTOOTHERS4HERATIOOFANNUALEXPENDITUREON0UBLIC2ELATIONSAND0UBLICITYTOTHEANNUALTURNOVERINCLUSIVEOFEXCISEDUTY 
is 0.00020:1
Statements
Standalone
statements
 234 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 30 : OTHER COMPREHENSIVE INCOME
`IN#RORE
Particulars 2018-19 2017-18
)TEMSTHATWILLNOTBERECLASSIlEDTOPROlTANDLOSS
2EMEASUREMENTOF$ElNED"ENElT0LANS (64.40) 
&AIRVALUEOF%QUITY)NSTRUMENTS (1,917.65) 
(1,982.05) 208.15
)NCOME4AXRELATINGTOITEMSTHATWILLNOTBERECLASSIlEDTOPROlTANDLOSS
2EMEASUREMENTOF$ElNED"ENElT0LANS 22.50 
&AIRVALUEOF%QUITY)NSTRUMENTS (486.01) 
(463.51) 358.66
)TEMSTHATWILLBERECLASSIlEDTOPROlTANDLOSS
&AIRVALUEOF$EBT)NSTRUMENTS 131.13 
'AIN,OSS ON(EDGING)NSTRUMENTS 24.12  
155.25 (232.42)
)NCOME4AXRELATINGTOITEMSTHATWILLBERECLASSIlEDTOPROlTANDLOSS
&AIRVALUEOF$EBT)NSTRUMENTS (25.67) 
'AIN,OSS ON(EDGING)NSTRUMENTS (8.44)  
(34.11) 
TOTAL (2,324.42) 397.36
 60th Annual Report 2018-19 235

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

Directors and others

Proposed dividends on Equity shares
&INAL PROPOSED DIVIDEND FOR -ARCH   `1.00 per share -ARCH   ` PER 941.42 

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

Discussion & Analysis

 3HARESHELDUNDER)/#3HARE4RUSTOFFACEVALUE`233.12 crore`CRORE HASBEENNETTEDOFFFROMPAIDUPCAPITAL

Management’s
 4HE#OMPANYHASALSOINCURREDEXPENSESONDISTRIBUTIONOFlNALDIVIDENDAMOUNTINGTO`0.14 crore`CRORE ANDONDISTRIBUTION
OFINTERIMDIVIDENDAMOUNTINGTO`0.34 crore`CRORE WHICHHASBEENDEBITEDTOEQUITY
 4HE"OARDOF$IRECTORSOFTHE#OMPANYATITSMEETINGHELDON$ECEMBERHADAPPROVEDAPROPOSALTOBUYBACKUPTO
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

NOTES TO FINANCIAL STATEMENTS

NOTE - 32 : EARNINGS PER SHARE (EPS)
"ASICAND$ILUTED%03AMOUNTSARECALCULATEDBYDIVIDINGTHEPROlTFORTHEYEARATTRIBUTABLETOEQUITYHOLDERSBYTHEWEIGHTEDAVERAGE
NUMBEROF%QUITY3HARESOUTSTANDINGDURINGTHEYEAR
4HEFOLLOWINGREmECTSTHEPROlTANDNUMBEROFSHARESUSEDINTHEBASICANDDILUTED%03COMPUTATIONS
`IN#RORE
Particulars 2018-19 2017-18
0ROlTATTRIBUTABLETO%QUITYHOLDERS` IN#RORE 16,894.15 
7EIGHTED!VERAGENUMBEROFEQUITYSHARESUSEDFORCOMPUTING%ARNING0ER3HARE"ASIC  9441179290 
2EFERNOTE AND
note-1 and 2
7EIGHTED !VERAGE NUMBER OF EQUITY SHARES USED FOR COMPUTING %ARNING 0ER 3HARE $ILUTED  9441179290 
2EFERNOTE AND
note-1 and 2
%ARNING0ER3HARE"ASIC ` 17.89 
%ARNING0ER3HARE$ILUTED ` 17.89 
&ACEVALUEPERSHARE` 10.00 
Notes
 %QUITY3HARESHELDUNDER)/#3HARE4RUSTOFFACEVALUE`233.12 croreHASBEENNETTEDOFFFROMWEIGHTEDAVERAGENUMBEROF%QUITY
3HARESAND%03ISWORKEDOUTACCORDINGLY
 4HE "OARD OF $IRECTORS OF THE #OMPANY AT ITS MEETING HELD ON $ECEMBER   HAD APPROVED A PROPOSAL TO BUYBACK UPTO
 4WENTY .INE #RORES 3EVENTY 3IX ,AKHS &IFTY /NE 4HOUSAND AND 3IX  %QUITY 3HARES OF THE #OMPANY 4HE #OMPANY
BOUGHT BACK  4WENTY .INE #RORES 3EVENTY 3IX ,AKH &IFTY /NE 4HOUSAND AND 3IX  %QUITY 3HARES OUT OF THE SHARES
THATWERETENDEREDBYELIGIBLESHAREHOLDERSANDTHESHARESBOUGHTBACKWERECANCELLEDANDEXTINGUISHEDON&EBRUARY
!CCORDINGLYEARNINGSPERSHARE%03 BASICANDDILUTED FOR&9 HAVEBEENADJUSTEDONACCOUNTOFBUYBACK
 60th Annual Report 2018-19 237

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% 

Directors and others

!6) /),)NDIA0RIVATE,IMITED India 25.00% 
0ETRONET)NDIA,IMITED5NDER,IQUIDATION India 18.00% 
0ETRONET6+,IMITED India 50.00% 

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% 

Discussion & Analysis

3UNTERA.IGERIA,IMITED .IGERIA 25.00% 
$ELHI!VIATION&UEL&ACILITY0RIVATE ,IMITED India 37.00% 

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

2ATNAGIRI2ElNERY0ETROCHEMICALS,TD India 50.00% 

)NDRADHANUSH'AS'RID,IMITED)NCORPORATEDON India 20.00%
Ï4HE#OMPANYISUNDERPROCESSOFCLOSURE
Financial financial

ÏÏ)NDIAN/ILHASDECIDEDTOEXITTHE*OINT6ENTUREANDHASGIVENNOTICEOFITSEXITFROMTHE,,0TOTHEOTHER*6PARTNERVIZ2UCHI3OYA
)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBERSTATINGTHATITWILLEXITTHE,,0WEF*ANUARY
Statements
Standalone
statements
 238 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 33B : INTEREST IN JOINT OPERATIONS
Name Principle place of Proportion of Ownership Interest
business March 31, 2019 March 31, 2018
E&P BLOCKS
 -. /3. Ï India 20.00% 
 !! /..  India 20.00% 
 '+ /3.  India 25.00% 
 '+ /3.  India 30.00% 
 #" /.. Ï India 20.00% 
 !!0 /.  India 29.03% 
 !! /.$3& 5-!4!2! 
India 90.00%
 "+ #"-  India 20.00% 
 .+ #"-  India 20.00% 
 &!23)",/#+)2!.> Iran 40.00% 
 ,)"9!",/#+Ï Libya 50.00% 
 ,)"9!",/#+Ï Libya 50.00% 
 3(!+4()'!"/. 'ABON 50.00% 
 !2%! ^ Libya 25.00% 
OTHERS
 0ETROLEUM)NDIA)NTERNATIONAL India 27.27% 

4HE2EVENUE3HARING#ONTRACT23# FORBLOCK!! /.$3& 5-!4!2! UNDER$ISCOVERED3MALL&IELDS$3& 2OUND))HASBEEN

SIGNEDON-ARCHWITH'OVTOF)NDIA
>4HEPROJECTSEXPLORATIONPERIODENDEDON*UNE.EGOTIATIONSWITH)RANIAN!UTHORITIESAREINPROGRESSFORDEVELOPMENTOFTHE
"LOCK
Ï"LOCKSAREUNDERRELINQUISHMENT
^5NDER&ORCE-AJEURESINCE-AY
%XPLORATION,ICENSEEXPIREDON/CTOBER#ONSORTIUMHASREQUESTED$IRECTORATE'ENERALOF(YDROCARBON$'( FOR!PPRAISAL
PHASEHOWEVERVIDELETTERDATED-ARCHITWASOPINEDTOCARRYOUT%XPLORATIONACTIVITYINSTEADOF!PPRAISALWORK

)/#,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-INERAL2ESOURCESvTHEDISCLOSUREOFlNANCIALINFORMATIONRELATINGTO
ACTIVITYASSOCIATEDWITHTHEEXPLORATIONFORANDEVALUATIONOFMINERALRESOURCESCRUDEOILNATURALGASETC 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

Directors and others

%XPLORATIONEXPENDITUREWRITTENOFF  
/THEREXPLORATIONCOSTS  

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 34B : IN COMPLIANCE OF REVSIED GUIDANCE NOTE ON ACCOUNTING FOR OIL AND GAS PRODUCING
ACTIVITIES, THE REQUIRED DISCLOSURES IN RESPECT OF RESERVES ARE AS UNDER:
$IROKlELDOF0RE .%,0BLOCK!!0 /. COMMENCEDPRODUCTIONOFGASANDCONDENSATEON!UGUSTHAVINGPRODUCINGLIFE
CYCLEOFYEARS)NDIAN/ILHASTHEPARTICIPATINGINTERESTOFINTHEBLOCK
.ET0ROVED2ESERVESOF#RUDE/IL#ONDENSATE.ATURAL'AS,IQUIDSAND'AS
Assets March 31, 2019 March 31, 2018
Crude Oil, Natural Gas Crude Oil, Natural Gas
Condensate, NGLs Condensate, NGLs
TMT Million Cubic Meter TMT Million Cubic Meter
A) Proved Reserves
!SSAM!!0 /.  Begining 47.42 1715.26  
Addition 32.04 -
$EDUCTION - -  
0RODUCTION 10.00 94.21  
Balance 69.46 1621.05  
Total Proved Reserves 69.46 1621.05 47.42 1715.26

B) Proved developed Reserves

!SSAM!!0 /.  Begining 47.42 1369.16  
Addition 32.04 346.10
$EDUCTION - - 
0RODUCTION 10.00 94.21  
Balance 69.46 1621.05  
Total Proved developed Reserves 69.46 1621.05 47.42 1369.16

.ET0ROVED2ESERVES0ROVEDDEVELOPED2ESERVESOF#RUDE/IL#ONDENSATE.ATURAL'AS,IQUIDSAND'ASON'EOGRAPHICAL"ASIS

Details March 31, 2019 March 31, 2018
Crude Oil, Natural Gas Crude Oil, Natural Gas
Condensate, NGLs Condensate, NGLs
TMT Million Cubic Meter TMT Million Cubic Meter
A) Proved Reserves
India 69.46 1621.05  
Total Proved Reserves 69.46 1621.05 47.42 1715.26

B) Proved developed Reserves

India 69.46 1621.05  
Total Proved developed Reserves 69.46 1621.05 47.42 1369.16
Frequency
4HE0ROVED0$ AND0ROVED$EVELOPED0$$ RESERVESMENTIONEDABOVEARETHEPROVISIONALNUMBERSBASEDONTHEESTIMATEPROVIDEDBY
THEOPERATOR&ORTHEPURPOSEOFESTIMATIONOF0ROVED0$ AND0ROVED$EVELOPED0$$ RESERVES$ETERMINISTICMETHODHASBEENUSEDBY
THEOPERATOR4HEANNUALREVISIONOF2ESERVE%STIMATESISBASEDONTHEYEARLYEXPLORATORYANDDEVELOPMENTACTIVITIESANDRESULTSTHEREOF
 60th Annual Report 2018-19 241

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)
 $URINGTHEYEARTHECOMPANYHASRECOGNISED `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 $ElNED #ONTRIBUTORY %MPLOYEES
0ENSION3CHEMEINTHE3TATMENTOF0ROlTAND,OSS#7)0INCLUDEDIN#ONTRIBUTIONTO0ROVIDENTAND/THER&UNDSIN.OTE 
#ONSTRUCTIONPERIODEXPENSESIN.OTE  
 &URTHERDURINGTHEYEARANAMOUNTOF`1,266.52 croreHASBEENCONTRIBUTEDONONETIMEBASISTOWARDS$ElNED"ENElTCONTRIBUTION

Description of
FORTHETRANSITIONPHASEARISINGASON*ANUARYIEATTHETIMEOFCOMMENCEMENTOF$ElNED#ONTRIBUTIONPENSIONSCHEME
" $ElNED"ENElT0LANS 'ENERAL$ESCRIPTION

Capitals
Provident Fund:
 4HE#OMPANYSCONTRIBUTIONTOTHE0ROVIDENT&UNDISREMITTEDTOSEPARATEPROVIDENTFUNDTRUSTSESTABLISHEDFORTHISPURPOSEBASEDON

Directors and others

AlXEDPERCENTAGEOFTHEELIGIBLEEMPLOYEESSALARYANDCHARGEDTO3TATEMENTOF0ROlTAND,OSS3HORTFALLIFANYINTHEFUNDASSETS
BASEDONTHE'OVERNMENTSPECIlEDMINIMUMRATEOFRETURNWILLBEMADEGOODBYTHE#OMPANY4HE#OMPANYHASTHREE0ROVIDENT
&UNDSMAINTAINEDBYRESPECTIVE0&4RUSTSINRESPECTOFWHICHACTUARIALVALUATIONISCARRIEDOUTANDALLTHREETRUSTSDONOTHAVEANY

Board of
DElCITASON-ARCH
Gratuity:
 %ACHEMPLOYEERENDERINGCONTINUOUSSERVICEOFYEARSORMOREISENTITLEDTORECEIVEGRATUITYAMOUNTEQUALTOOFTHEEILIGIBLE
SALARYFOREVERYCOMPLETEDYEAROFSERVICESUBJECTTOMAXIMUMOF`CROREATTHETIMEOFSEPARATIONFROMTHECOMPANY"ESIDES
THECEILINGOFGRATUITYINCREASESBYWHENEVER)$!RISESBY

Directors’
Report
Post Retirement Medical Scheme (PRMS):
 02-3PROVIDESMEDICALBENElTTORETIREDEMPLOYEESANDELIGIBLEDEPENDANTFAMILYMEMBERS

Discussion & Analysis

Resettlement Allowance:

Management’s
 2ESETTLEMENTALLOWANCEISPAIDTOEMPLOYEESTOPERMANENTLYSETTLEDOWNATAPLACEOTHERTHANTHELOCATIONOFLASTPOSTINGATTHETIME
OFRETIREMENT
Ex gratia:
 %X GRATIAISPAYABLETOTHOSEEMPLOYEESWHOHAVERETIREDBEFORE.OVEMBERANDNOTCOVEREDUNDERTHEPENSIONSCHEME

Responsibility Report
&URTHERFOREMPLOYEESWHOHAVERETIREDONORAFTER.OVEMBERANDTHEIRENTITLEMENTUNDERTHEPENSIONSCHEMEISLESSTHAN
APPLICABLEAMOUNTUNDER%X 'RATIA3CHEMESUCHEMPLOYEESAREALSOELIGIBLETOTHEEXTENTOFSHORTFALLORDIFFERENCEUNDER%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

Felicitation of Retired Employees:

Statements
Standalone
statements

 4HE#OMPANYHASINTRODUCEDASCHEMETOPAYSPECIlEDAMOUNTASFELICITATIONAWARDTORETIREDEMPLOYEESONACHIEVINGSPECIlCAGE
MILESTONES`555.18 crore HASBEENREGOGNISEDASEXPENSESINCLUDINGACTURIALLIABILITYOF`CRORE DURINGTHEYEARONTHIS
ACCOUNT
 242 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 35 : EMPLOYEE BENEFITS (Contd...)
# /THER,ONG 4ERM%MPLOYEE"ENElTS 'ENERAL$ESCRIPTION
Leave Encashment:
 %ACHEMPLOYEEISENTITLEDTOGETEARNEDLEAVESFOREACHCOMPLETEDQUARTEROFSERVICE%NCASHMENTOFEARNEDLEAVESISALLOWED
DURINGSERVICELEAVINGAMINIMUMBALANCEOFDAYSSUBJECTTOMAXIMUMACCUMULATIONOFDAYS)NADDITIONEACHEMPLOYEEIS
ENTITLEDTOGETSICKLEAVESINLIEUOF(0, ATTHEENDOFEVERYSIXMONTHS4HEENTIREACCUMULATIONISPERMITTEDFORENCASHMENT
ONLYATTHETIMEOFRETIREMENT$0%HADCLARIlEDTHATSICKLEAVECANNOTBEENCASHEDTHOUGH%ARNED,EAVE%, AND(ALF0AY,EAVE
(0, COULDBECONSIDEREDFORENCASHMENTONRETIREMENTSUBJECTTOTHEOVERALLLIMITOFDAYS-/0.'HASADVISEDTHECOMPANY
TOCOMPLYWITHTHE$0%'UIDELINES(OWEVERKEEPINGINVIEWOPERATIONALCOMPLICATIONSANDSERVICEAGREEMENTSTHECOMPANYHAS
CONTINUEDWITHTHEPRESENTPRACTICEANDREQUESTEDCONCERNEDAUTHORITIESTORECONSIDERTHEMATTER
Long Service Award:
 /NCOMPLETIONOFSPECIlEDPERIODOFSERVICEWITHTHECOMPANYANDALSOATTHETIMEOFRETIREMENTEMPLOYEESAREREWARDEDWITH
AMOUNTSBASEDONTHEDURATIONOFSERVICECOMPLETED-/0.'VIDEITSLETTERDATED$ECEMBERHASINTIMATEDTHATTHE
SCHEMEISNOTFORMINGPARTOF$0%GUIDELINESASOFNOWANDTHUSISIRREGULARANDHASADVISEDTOMAKERECOVERYOFPAYMENTSMADE
)/#,HASCLARIlEDITSPOSITIONTO-/0.'VIDEITSLETTERDATED-ARCHAND!PRILSTATINGTHATAWARDBASEDON
LENGTHOFMERITORIOUSANDFAITHFULSERVICEOFEMPLOYEES,ONG3ERVICE!WARD WASSPECIlCALLYALLOWEDBY$0%FORMERLY"0% THRU
ITSLETTERDATED&EBRUARY4HEMATTERISBEINGPURSUEDWITH-/0.'FORRESOLUTION0ENDINGTHISTHEPROVISIONISINLINE
WITH"OARDAPPROVEDPOLICY4HEAMOUNTPROVIDEDDURING ONTHISACCOUNTIS`21.08 crores`#RORE ANDTHE
PAYMENTSMADETOEMPLOYEESDURING IS`30.66 Crores`#RORES 4HEACTUARIALLIABILITYOF`187.07 Crores in
THISRESPECTASON-ARCHISINCLUDEDUNDERh0ROVISIONFOR%MPLOYEES"ENElTvINh.OTEn0ROVISIONSv
Leave Fare Allowance (LFA)/Leave Travel Concession (LTC):
 ,4#ISALLOWEDONCEINAPERIODOFTWOCALENDARYEARSVIZTWOYEARLYBLOCK !NEMPLOYEEHASINANYGIVENBLOCKPERIODOFTWOYEARS
ANOPTIONOFAVAILING,4#ORENCASHINGTHEENTILEMENTSOF,&!
$ 4HESUMMARISEDPOSITIONOFVARIOUS$ElNED"ENElT0LANSRECOGNISEDINTHE3TATEMENTOF0ROlT,OSS"ALANCE3HEETAND/THER
Comprehensive Income are as under:
(Figures given in Unbold & Italic Font in the table are for previous year)
I  2ECONCILIATIONOF"ALANCEOF$ElNED"ENElT0LANS
`IN#RORE
Provident Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded
$ElNED/BLIGATIONATTHEBEGINNING 12,846.57 2,657.59 4,561.94 1.23 122.34 190.55
11,338.41 1,443.47 4,322.03 2.85 87.58 198.42
Current Service Cost 418.12 39.11 208.16 - 19.71 -
401.03 20.77 197.94 0.06 13.96 -
0AST3ERVICE#OST - - - - - -
- 1,288.12 - - 40.78 -
Interest Cost 1,119.63 206.76 354.01 0.01 9.52 14.90
1,122.62 105.23 321.99 0.12 6.38 14.90
Contribution by employees 1,154.88 - - - - -
983.70 - - - - -
.ET,IABILITYTRANSFERRED)N/UT 83.62 - - - - -
67.52 - - - - -
"ENElTSPAID (1,296.83) (369.78) (203.04) (1.24) (8.18) (27.60)
(1,066.71) (149.97) (180.16) (1.82) (6.16) (27.32)
!CTUARIALGAIN LOSSONOBLIGATIONS - 129.08 (12.13) - (22.56) 31.07
- (50.03) (99.86) 0.02 (20.20) 4.55
$ElNED"ENElT/BLIGATIONATTHEENDOF 14,325.99 2,662.76 4,908.94 - 120.83 208.92
the year 12,846.57 2,657.59 4,561.94 1.23 122.34 190.55
 60th Annual Report 2018-19 243

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 - - - - -

Directors and others

"ENElTPAID (1,296.83) (369.78) (203.04) (1.24) - -
(1,066.71) (149.97) (180.16) (1.82) - -

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

Discussion & Analysis

Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 35 : EMPLOYEE BENEFITS (Contd...)
IV  !MOUNTRECOGNISEDIN3TATEMENTOF0ROlTAND,OSS#ONSTRUCTION0ERIOD%XPENSES
`IN#RORE
Provident Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded
Current Service Cost 418.12 39.11 208.16 - 19.71 -
401.03 20.77 197.94 0.06 13.96 -
0AST3ERVICE#OST - - - - - -
- 1,288.12 - - 40.78 -
.ET)NTEREST#OST - 63.80 (6.23) 0.01 9.52 14.90
- (29.11) 46.16 - 6.38 14.90
Contribution by Employees - - (1.27) - - -
- - (1.18) - - -
%XPENSESFORTHEYEAR 418.12 102.91 200.66 0.01 29.23 14.90
401.03 1,279.78 242.92 0.06 61.12 14.90

(v) Amount recognised in Other Comprehensive Income (OCI)

`IN#RORE
Provident Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded
!CTUARIALGAIN LOSSON/BLIGATIONS - (1.61) (14.86) - (0.15) 2.30
$UETOCHANGEINASSUMPTIONS - (81.03) 192.00 - (7.62) 4.55
!CTUARIALGAIN LOSSON/BLIGATIONS - 130.69 2.73 - (22.41) 28.77
$UETO%XPERIENCE - 31.00 (291.86) 0.02 (12.58) -
2E MEASUREMENT2ETURNONPLANASSETS - 29.11 31.95 - - -
EXCLUDING)NTEREST)NCOME - 10.31 70.74 0.07 - -
.ET,OSS'AIN RECOGNIZEDIN/#) - 99.97 (44.08) - (22.56) 31.07
(60.34) (170.60) (0.05) (20.20) 4.55

(vi) Major Actuarial Assumptions

Provident Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Fund Fund at AOD Allowance
Funded Funded Funded Funded Non-Funded Non-Funded
$ISCOUNTRATE 7.78% 7.79% 7.78% - 7.79% 7.54%
7.78% 7.78% 7.76% 6.60% 7.78% 7.82%
Salary escalation - 8.00% - - - -
- 8.00% - 8.00% - -
)NmATION - - 8.00% - 6.00% -
- - 8.00% - 6.00% -
!VERAGE%XPECTED&UTURE3ERVICE - 16 30 - 16 11
/BLIGATION9EARS - 15 30 2 15 9
4HEESTIMATEOFFUTURESALARYINCREASESCONSIDEREDINACTUARIALVALUATIONTAKESACCOUNTOFINmATIONSENIORITYPROMOTIONANDOTHER
RELEVANTFACTORSSUCHASSUPPLYANDDEMANDFACTORSINTHEEMPLOYMENTMARKET
 60th Annual Report 2018-19 245

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 - -

Directors and others

$ECREASEBY - - (414.91) - -
- - (383.10) - -

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%

Discussion & Analysis

$ETAILSOFTHEINVESTMENTPATTERNFORTHEABOVEMENTIONEDFUNDEDOBLIGATIONSISASUNDER
Provident Gratuity PRMS Staff Pension

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%

IX  4HEFOLLOWINGPAYMENTSAREEXPECTEDPROJECTIONSTOTHEDElNEDBENElTPLANINFUTUREYEARS Report on Corporate

`IN#RORE
Loss/(Gain) for: Gratuity PRMS Staff Pension Resettlement Ex-Gratia
Governance

Fund at AOD Allowance

7ITHINNEXT-ONTHS 415.59 209.61 - 8.78 36.67
489.04 183.81 0.02 9.01 33.03
"ETWEENTO9EARS 1,076.26 904.46 - 32.33 117.07
Financial financial

1,073.84 780.53 1.36 33.17 106.74

"ETWEENTO9EARS 1,067.11 1,245.33 - 40.38 88.61
Statements
Standalone
statements

1,101.98 1,098.67 - 43.84 82.83

 246 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 36 : COMMITMENTS AND CONTINGENCIES
A. Leases
(a) Operating Lease — As Lessee
I  ,EASE2ENTALSCHARGEDTOTHE3TATEMENTOFPROlTANDLOSSANDMAXIMUMOBLIGATIONSONLONGTERMNON CANCELLABLEOPERATINGLEASES
payable as per the rentals stated in the respective lease agreements/arrangements
`IN#RORE
2018-19 2017-18
Lease Rentals for Non-Cancellable operating leases
A ,EASERENTALSRECOGNIZEDDURINGTHEYEARINCLAPPLICABLECASESASPERIV BELOW 9,398.74 
B ,EASE/BLIGATIONS
7ITHINONEYEAR 8,352.95 
!FTERONEYEARBUTNOTMORETHANlVEYEARS 18,739.51 
-ORETHANlVEYEARS 537.23 
 4HESERELATETOSTORAGETANKAGEFACILITIESFORPETROLEUMPRODUCTS"//CONTRACTFOR.ITROGENAND(YDROGEN0LANT1#LABAROTARYAT
0ARADIP2ElNERYANDVARIOUSOTHERLEASESINSUBSTANCEASMENTIONEDINIV BELOW
II  4HE#OMPANYHASPAIDADVANCEOF`215.90 CroreFORACQUISITIONOFLEASEHOLDBUILDINGSFORWHICHOFFEROFPOSSESSIONISISSUEDBY
THECONTRACTORDURINGTHEYEAR#OMPANYHASNOTTAKENTHEPHYSICALPOSSESSIONOFPROPERTYASSTAYISIMPOSEDBY(ONBLE$ELHI(IGH
#OURTFORHANDINGOVEROFTHEOFlCEPREMISES0ENDINGTAKINGOVEROFPOSSESSIONAMOUNTPAIDTOCONTRACTORISCONTINUEDASADVANCES
UNDER.OTEANDNOAMORTIZATIONOFLEASERENTALISBEINGDONE
III  4HE#OMPANYHASTAKENCERTAINASSETSINCLUDINGLANDSOFlCERESIDENTIALPREMISES ON/PERATING,EASEWHICHARECANCELLABLEBY
GIVINGAPPROPRIATENOTICEASPERTHERESPECTIVEAGREEMENTSINCLAPPLICABLECASESASPERIV BELOW$URINGTHECURRENTYEAR`995.68
crore`CRORE HASBEENPAIDTOWARDSCANCELLABLE/PERATING,EASE!LSOREFER.OTE"FORMOREDETAILSONJUDGEMENTS
MADEFORLEASECLASSIlCATIONINCASEOFLANDS
IV  ,EASESINSUBSTANCE/PERATINGLEASE#OMPANYASLESSEE
 4HE#OMPANYHASENTEREDINTOSOMECONTRACTSWHICHAREINSUBSTANCEOPERATINGLEASECONTRACTS#URRENTLYTHE#OMPANYHASBOOKED
PAYMENTMADEUNDERTHESECONTRACTSASEXPENSESINTHESTATEMENTOFPROlTANDLOSS4HEDETAILSINRESPECTOFMATERIALOPERATING
LEASEARRANGEMENTSAREASUNDER
A  )/#,HASENTEREDINTOVARIOUSAGREEMENTSWITHTRANSPORTERSFORTHEMOVEMENTOFPETROLEUMPRODUCTSFORDIFFERENTTENURES5NDER
THESEAGREEMENTSSPECIlCTRUCKSAREIDENTIlEDTHATAREUSEDEXCLUSIVELYFORTHETRANSPORTOPERATIONSOF)/#,ONLY
B  )/#,HASENTEREDINTOAGREEMENTSWITHVESSELOWNERSFORHIRINGOFVESSELSFORDIFFERENTTENURES3PECIlEDVESSELSAREIDENTIlED
INTHEAGREEMENTWITHREFERENCETOTHENAMEANDDESCRIPTIONOFVESSELWHICHCANONLYBEUSED3UCHVESSELSAREDEDICATEDFOR
)/#,SUSEONLYFORTHEENTIREPERIODOFARRANGEMENT&URTHERDURINGTHELEASEPERIODTHEOWNERCANLETOUTTHESPECIlCVESSEL
TOANYTHIRDPARTYONLYAFTEROBTAINING)/#,SPERMISSION(ENCETHISARRANGEMENTISCLASSIlEDASLEASEASPER!PPENDIX#TO)ND
!3
C  "//AGREEMENTWITH!IR,IQUIDE)NDUSTRIESISFORSUPPLYOFOXYGENANDNITROGENAT0ANIPAT2ElNERYFORAPERIODOFYEARS
4HELANDISOWNEDBY)/#,ANDTHEPLANTISBEINGOPERATEDBYCONTRACTORFORSUPPLYOFOXYGENANDNITROGENTO)/#,4HEREIS
ACOMMITMENTTOPAYMONTHLYMINIMUMAMOUNTASPERTHEAGREEMENT)/#,SHALLALWAYSHAVElRSTRIGHTOFUSEOF.ITROGEN
 /XYGEN MANUFACTURED AT THE PLANT .ITROGEN GAS MANUFACTURED BY THE CONTRACTOR IS MAINLY SUPPLIED TO )/#, (ENCE THIS
ARRANGEMENTISCLASSIlEDASLEASEASPER!PPENDIX#TO)ND!3
 60th Annual Report 2018-19 247

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

Directors and others

&REIGHTANDTRANSPORTATIONCHARGESUNDERTHEHEADh/THER%XPENSESvINRELATIONTOARRANGEMENT 8,441.82 
WITHTRANSPORTERS

(b) Operating Lease — As Lessor

Board of
 4HELEASERENTALSRECOGNIZEDASINCOMEINTHESESTATEMENTSASPERTHERENTALSSTATEDINTHERESPECTIVEAGREEMENTS
`IN#RORE
2018-19 2017-18
!,EASERENTALSRECOGNIZEDASINCOMEDURINGTHEYEAR 4.28 
"6ALUEOFASSETSGIVENONLEASEINCLUDEDINTANGIBLEASSETS

Directors’
Report
'ROSS#ARRYING!MOUNT 3.63 
!CCUMULATED$EPRECIATION 0.68 

Discussion & Analysis

$EPRECIATIONRECOGNIZEDINTHE3TATEMENTOF0ROlTAND,OSS 0.17 
 4HESERELATETOSTORAGETANKAGEFACILITIESFORPETROLEUMPRODUCTSANDBUILDINGSGIVENONLEASE

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#OMPANYHASOBTAINEDVARIOUSLANDSFROMTHEGOVERNMENTSFORPURPOSEOFPLANTSFACILITIESANDOFlCES,EASECASESWHERE
ATTHEINCEPTIONOFTHELEASETHEPRESENTVALUEOFMINIMUMLEASEPAYMENTSISSUBSTATITALLYEQUALTOTHEFAIRVALUEOFLEASED
Governance

ASSETSARECONSIDEREDUNDERlNANCELEASES!LSOREFER.OTE"FORMOREDETAILSONJUDGEMENTSMADEFORLEASECLASSIlCATION
Financial financial
Statements
Standalone
statements
 248 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 36 : COMMITMENTS AND CONTINGENCIES (Contd...)
 $ISCLOSUREUNDER&INANCE,EASEAS,ESSEE
`IN#RORE
March 31, 2019 March 31, 2018
(i) Minimum lease payments
7ITHINONEYEAR 581.20 
!FTERONEYEARBUTNOTMORETHANlVEYEARS 2,263.77 
-ORETHANlVEYEARS 3,892.30 
TOTAL 6,737.27 7,071.62
(ii) Present value of minimum lease payments
7ITHINONEYEAR 201.06 
!FTERONEYEARBUTNOTMORETHANlVEYEARS 982.70 
-ORETHANlVEYEARS 2,327.04 
TOTAL 3,510.80 3,621.48
!DD&UTURElNANCECHARGES 3,226.47 
TOTAL 6,737.27 7,071.62

(d) Finance Lease — as Lessor

 4HE#OMPANYHASENTEREDINTOFOLLOWINGMATERIALlNANCELEASEARRANGEMENTS
I  #OMPANYHASENTEREDINTO,EASE!GREEMENTWITH)NDIAN2AILWAYSINRESPECTOF"40.4ANK7AGONSFORAMINIMUMPERIODOF
YEARS4HELEASERENTALSFROMTHEDATEOFFORMATIONOFRAKEARE FORTHElRSTYEARSANDTHEREAFTERATTHENOMINALRATE
OFOFTHECOST
II  #OMPANYHASENTEREDINTOALEASEAGREEMENTWITH)NDIAN3YNTHETIC2UBBER0RIVATE,IMITEDINWHICHTHE#OMPANYHASLEASED
OUTLANDFORONETIMEUPFRONTPAYMENTOF`CRORES
`IN#RORE
March 31, 2019 March 31, 2018
A. Gross Investments in Finance Lease 510.17 
,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 2018-19 249

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 `

Directors and others

CRORE 
 4HE #OMPANY HAS NOT CONSIDERED THOSE DISPUTED DEMANDSCLAIMS AS CONTINGENT LIABILITIES FOR WHICH THE OUTmOW OF
RESOURCESHASBEENCONSIDEREDASREMOTE#ONTINGENTLIABILITIESINRESPECTOFJOINTOPERATIONSAREDISCLOSEDIN.OTE"

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 

Discussion & Analysis

"4HE#OMPANYHASENTEREDINTO-ASTER'UARANTEE!GREEMENTONBEHALFOFITSSUBSIDIARIESVIZ)NDOIL'LOBAL"6AND)NDOIL
-ONTNEY,TDFORALLOFITSPAYMENTSANDPERFORMANCEOBLIGATIONSUNDERTHEVARIOUS0ROJECT!GREEMENTSENTEREDBYTHE

Management’s
SUBSIDIARIESWITH0%42/.!3#ARIGALI#ANADA"6AND0ROGRESS%NERGY#ANADA,TD4HETOTALAMOUNTSANCTIONEDBYTHE
"OARDOF$IRECTORSIS#!$MILLION4HEESTIMATEDAMOUNTOFSUCHOBLIGATIONNETOFAMOUNTPAID IS`4,558.93
crore CAD 884.39 millionCRORE #!$MILLION 4HESANCTIONEDAMOUNTWASREDUCEDBY#!$
MILLIONDUETOWINDINGDOWNOF,.'0LANTDURING

Responsibility Report
"4HE#OMPANYHASISSUED#ORPORATE'UARANTEEONBEHALFOF)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#OMPANYONBEHALFOF5RJA
Governance

"HARAT0TE,TD3INGAPOREAJOINTVENTURECOMPANYOF#OMPANYSSUBSIDIARYIE)/#,3INGAPORE0TE,TD TOFULlLLTHE

JOINTVENTURECOMPANYSFUTUREOBLIGATIONSOFPAYMENTANDPERFORMANCEOF-INIMUM7ORK0ROGRAMME4HETOTALAMOUNT
SANCTIONEDBYTHE"OARDOF$IRECTORSIS53$-ILLION4HEESTIMATEDAMOUNTOFSUCHOBLIGATIONNETOFAMOUNTPAID 
is `581.98 crore - USD 84.15 million `.), 53$.), 
Financial financial
Statements
Standalone
statements
 250 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 36 : COMMITMENTS AND CONTINGENCIES (Contd...)
B.3 Other money for which the Company is Contingently Liable
 0ENDINGDECISIONOFTHE'OVERNMENTNOLIABILITYCOULDBEDETERMINEDANDPROVIDEDFORINRESPECTOFADDITIONALCOMPENSATIONIFANY
PAYABLETOTHELANDOWNERSANDTHE'OVERNMENTFORCERTAINLANDSACQUIRED

C. Commitments

C.1 Capital Commitments

   STIMATEDAMOUNTOFCONTRACTSREMAININGTOBEEXECUTEDON#APITAL!CCOUNTANDNOTPROVIDEDFOR`23,638.90 crore 
%
`CRORE #APITAL#OMMITMENTSINRESPECTOF*OINT/PERATIONSAREDISCLOSEDIN.OTE"

C.2 Other Commitments

 #4HE#OMPANYHASANEXPORTOBLIGATIONTOTHEEXTENTOF`785.17 crore `CRORE ONACCOUNTOFCONCESSIONAL
RATEOFDUTYAVAILEDUNDER%0#'LICENSESCHEMEONPROCUREMENTOFCAPITALGOODSANDTHESAMEISEXPECTEDTOBEFULlLLED
BYWAYOFEXPORTS
 #4OMEETTHEDIRECTIONOF(ONOURABLE(IGH#OURTOF/RISSATHE#OMPANYHASACOMMITMENTTOPAY`280.10 crore 
`CRORE TOWARDSPROVIDINGHIGHTECHAMBULANCESREMOVALOFOLDANICUTANDCONSTRUCTIONOFWATERTREATMENTPLANT
INTHE3TATEOF/RISSA)NADDITIONTHE#OMPANYHASTOINCURCOSTTOWARDSDREDGINGTHROUGH/RISSA#ONSTRUCTION#OASTATE
GOVERNMENTAGENCYESTIMATEFORWHICHYETTOBElNALISED
 #)NDIAN/IL,.'0RIVATE,IMITED)/,0, THE*6#OMPANYHASENTEREDINTO$EBENTURE3UBSCRIPTION!GREEMENTWITH)#)#)
"ANK)#)#) INWHICHTHE#OMPANY)/#, ASPROMOTEROF)/,0,HASPROVIDEDPUTOPTIONUNDERWHICH)#)#)HASOPTION
TOSELL#OMPULSORY#ONVERTIBLE$EBENTURE##$ TOTHE#OMPANY)/#, BEFORETHEEXPIRYDATE)NADDITIONTOTHISTHE
#OMPANYATTHESOLEDISCRETIONHASRIGHTTOACQUIRE##$FROM)#)#)ONORBEFORETHEEXPIRYDATE4HE#OMPANYS)/#, 
SHAREOFSUCHOBLIGATIONIS`808.44 Crore`#RORE 

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  
SUPERVISIONCHARGESPRICEDISCOUNTANDINTERESTADMITTEDBYTHE!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:

 #HENNAI0ETROLEUM#ORPORATION,IMITED  )/#,53! ).#

 )NDIAN/IL-AURITIUS ,IMITED  )ND/IL'LOBAL"6.ETHERLANDS

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 =

Directors and others

2 Other Operating Revenue/Other Income 254.19 
;)NCLUDES/THER/PERATING2EVENUE/THER)NCOMEFROM#HENNAI0ETROLEUM#ORPORATION
Limited `222.77 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

Discussion & Analysis

crore  ` CRORE  )/# -IDDLE %AST &:% `1.85 crore  ` CRORE 
)NDIAN/IL -AURITIUS  ,IMITED `1.20 crore   ` CRORE  AND ,ANKA )/# 0,#

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

;)NCLUDES /UTSTANDING 2ECEIVABLES,OANS  !DVANCES FROM #HENNAI 0ETROLEUM

Corporation Limited `2,974.89 crore`CRORE =
10 Outstanding Payables 2,315.54 
;)NCLUDES /UTSTANDING PAYABLE TO #HENNAI 0ETROLEUM #ORPORATION ,IMITED `1,361.82
Financial financial

crore `CRORE )ND/IL'LOBAL"6.ETHERLANDS`479.42 crore 

.), AND)/#,3INGAPORE0TE,IMITED`460.33 crore`CRORE =
11 Investments in Subsidiaries as on date 16,383.67 
Statements
Standalone
statements
 252 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 37 : RELATED PARTY DISCLOSURES (Contd...)
Note:
  4RANSACTIONSINEXCESSOFOFTHETOTALRELATEDPARTYTRANSACTIONSFOREACHTYPEHASBEENDISCLOSEDABOVE
  )N CASE OF 3UBSIDIARY #OMPANIES CONSTITUTEDACQUIRED DURING THE YEAR TRANSACTIONS WEF DATE OF CONSTITUTIONACQUISITION ARE
DISCLOSED
  )NCASEOF3UBSIDIARY#OMPANIESWHICHHAVEBEENCLOSEDDIVESTEDDURINGTHEYEARTRANSACTIONSUPTOTHEDATEOFCLOSUREDISINVESTMENT
ONLYAREDISCLOSED
 Ï4HE#OMPANYISUNDERPROCESSOFCLOSURE

2. Relationship with Entities

A) Details of Joint Ventures (JV)/Associate Entities to IOCL & its subsidiaries

 )NDIAN/ILTANKING,IMITED
&ORMERLYKNOWNAS)/4)NFRASTRUCTURE%NERGY3ERVICES,TD
 ,UBRIZOL)NDIA0RIVATE,IMITED
 0ETRONET6+,IMITED
!DANI'AS0RIVATE,IMITED
 )NDIAN/IL0ETRONAS0RIVATE,IMITED
 !VI
/IL)NDIA0RIVATE,IMITED
 0ETRONET)NDIA,IMITED
 (INDUSTAN5RVARAK2ASAYAN,IMITED
 0ETRONET,.',IMITED
 'REEN'AS,IMITED
 )NDIAN/IL0ANIPAT0OWER#ONSORTIUM,IMITED
 0ETRONET#),IMITED
 )NDIAN/IL,.'0RIVATE,IMITED
 )NDIAN/IL3KY4ANKING0RIVATE,IMITED
 3UNTERA.IGERIA,IMITED
 $ELHI!VIATION&UEL&ACILITY0RIVATE,IMITED
 )NDIAN3YNTHETIC2UBBER0RIVATE,IMITED
 )NDIAN/IL2UCHI"IOFUELS,,0Ï
 .0#),
)NDIAN/IL.UCLEAR%NERGY#ORPORATION,IMITED
 '30,)NDIA4RANSCO,IMITED
 '30,)NDIA'ASNET,IMITED
 )NDIAN/IL
 -UMBAI!VIATION&UEL&ARM&ACILITY0RIVATE,IMITED
 +OCHI3ALEM0IPELINE0RIVATE,IMITED
 2ATNAGIRI2ElNERY0ETROCHEMICALS,IMITED
 )NDRADHANUSH'AS'RID,IMITED)NCORPORATEDON
 )NDIAN!DDITIVES,IMITED
 .ATIONAL!ROMATICS0ETROCHEMICALS#ORPORATION,IMITED
 ).$/),.ETHERLANDS"6
 4AAS)NDIA04%,IMITED
 6ANKOR)NDIA04%,IMITED
 #EYLON0ETROLEUM3TORAGE4ERMINALS,IMITED
 &ALCON/IL'AS"6
 5RJA"HARAT04%,TD)NCORPORATEDON

B) Details of Subsidiaries to JV’s of IOCL

 )/4%NGINEERING#ONSTRUCTION3ERVICES,TD
 3TEWARTSAND,LOYDSOF)NDIA,IMITED
 )/4)NFRASTRUCTURES0RIVATE,IMITED
 )/45TKAL%NERGY3ERVICES,IMITED
 04)/4%0#)NDONESIA
 )/4%NGINEERING0ROJECTS,IMITED
 )NDIAN/ILTANKING%NGINEERING#ONSTRUCTION3ERVICES,,#/MAN
 *3#+AZAKHSTAN#ASPISHELF
 )/46)4/-5(%.$)3,)+).3!!46%4!!(54!3
 )NDIAN/IL3KYTANKING$ELHI0VT,IMITED
 )/4"IOGAS0RIVATE,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 =

Directors and others

5 Purchase of Raw Materials/Others 5,527.95 
;)NCLUDES0URCHASEOF2AW-ATERIALS/THERSFROM0ETRONET,.',IMITED`5,083.97 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 

Discussion & Analysis

;)NCLUDES2EIMBURSEMENTOF%XPENSESPERTAININGTO)NDIAN/ILTANKING,TD`1.26 crore
`CRORE AND'REEN'AS,IMITED`0.29 crore.), =

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

14 Investments in JV/Associates as on date 2,805.89 

Statements
Standalone
statements
 254 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 37 : RELATED PARTY DISCLOSURES (Contd...)
Note
  4RANSACTIONSINEXCESSOFOFTHETOTALRELATEDPARTYTRANSACTIONSFOREACHTYPEHASBEENDISCLOSEDABOVE
  )N CASE OF *OINT 6ENTURE3UBSIDIARY #OMPANIES CONSTITUTEDACQUIRED DURING THE PERIOD TRANSACTIONS WEF DATE OF CONSTITUTION
ACQUISITIONISDISCLOSED
  )NCASEOF*OINT6ENTURE3UBSIDIARY#OMPANIESWHICHHAVEBEENCLOSEDDIVESTEDDURINGTHEPERIODTRANSACTIONSUPTOTHEDATEOF
CLOSUREDISINVESTMENTONLYAREDISCLOSED

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
!PARTFROMTRANSACTIONSREPORTEDABOVETHECOMPANYHASTRANSACTIONSWITHOTHER'OVERNMENTRELATEDENTITIESWHICHINCLUDESBUT
NOTLIMITEDTOTHEFOLLOWING
Name of Government: 'OVERNMENTOF)NDIA#ENTRALAND3TATE'OVERNMENT
Nature of Transactions:
• 3ALEOF0RODUCTSAND3ERVICES
• 0URCHASEOF0RODUCTS
• 0URCHASEOF2AW-ATERIALS
• (ANDLINGAND&REIGHT#HARGESETC
4HESETRANSACTIONSARECONDUCTEDINTHEORDINARYCOURSEOFTHE#OMPANYSBUSINESSONTERMSCOMPARABLETOTHOSEWITHOTHERENTITIES
THATARENOT'OVERNMENT RELATED

 ,IQUIDATORHASBEENAPPOINTEDFORWINDINGUPOFCOMPANYWEF!UGUST
 4HE*6#HASNOTBEENCLOSEDWOUNDUPASYETHOWEVERTHECOMPANYISNOTCARRYINGOUTANYOPERATIONS
Ï )NDIAN/ILHASDECIDEDTOEXITTHE*OINT6ENTUREANDHASGIVENNOTICEOFITSEXITFROMTHE,,0TOTHEOTHER*6PARTNERVIZ2UCHI
3OYA)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBERSTATINGTHATITWILLEXITTHE,,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

Directors and others

 3HRI!KSHAY+UMAR3INGH  3HRI3ANKAR#HAKRABORTI
WEF!UGUST
 3HRI+AMAL+UMAR'WALANI  3HRI$HARMENDRA33HEKHAWAT

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

Discussion & Analysis

Secretary
 3HRI3ANJIV3INGH        

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 TO FINANCIAL STATEMENTS

NOTE - 37 : RELATED PARTY DISCLOSURES (Contd...)
March 31, 2018
`IN#RORE
Key Managerial Personnel Short-Term Post Other Total Sitting Outstanding
Employee Employment Long Term Remuneration Fees Loans (Gross)/
"ENElTS "ENElTS "ENElTS Advance
Receivables
A. Whole Time Directors/Company Secretary
 3HRI3ANJIV3INGH       
 3HRI!+3HARMA       
 3HRI'+3ATISH       
 $R3362AMAKUMAR       
 3HRI"62AMA'OPAL        
 3HRI2ANJAN+UMAR-OHAPATRA        
 3HRI'URMEET3INGH            
 3HRI!KSHAY+UMAR3INGH            
 3HRI+AMAL+UMAR'WALANI       
B. Independent Directors
 3HRI3ANJAY+APOOR           
 3HRI0ARINDU+"HAGAT           
 3HRI6INOO-ATHUR           
 3HRI3AMIRENDRA#HATTERJEE           
 3HRI6IVEK2AE           
 3HRI#HITTA2ANJAN"ISWAL           
 $R*AGDISH+ISHWAN           
 3HRI3ANKAR#HAKRABORTI           
 3HRI$HARMENDRA33HEKHAWAT           
TOTAL 2.78 0.34 0.78 3.90 0.63 0.59

Notes :
  4HISDOESNOTINCLUDETHEIMPACTOFPROVISIONMADEONACTUARIALVALUATIONOFRETIREMENTBENElTLONGTERM3CHEMESANDPROVISION
MADEDURINGTHEPERIODTOWARDS0OST2ETIREMENT"ENElTSASTHESAMEARENOTSEPARATELYASCERTAINABLEFORINDIVIDUALDIRECTORS
  )NADDITIONWHOLE TIME$IRECTORSAREALSOALLOWEDTHEUSEOF#ORPORATIONSCARFORPRIVATEPURPOSESUPTOKMSPERANNUMON
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

Directors and others

4 IOCL Employees Superannuation 0ENSION3CHEME 1,740.72 19.76  
"ENElT&UND

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

Discussion & Analysis

Management’s
Responsibility Report
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
 258 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 38 : SEGMENT INFORMATION
Operating Segment Reporting as per Ind AS 108 for the year ended March 31, 2019 is as under:
`IN#RORE
2018-19 2017-18
Petroleum Petro- Other Eliminations Total Petroleum Petro- Other Eliminations Total
Products chemicals Business Products chemicals Business
Revenue
%XTERNAL2EVENUE 5,76,087.88 21,146.91 8,688.98 - 6,05,923.77      
)NTER SEGMENT2EVENUE 11,651.29 35.91 95.89 (11,783.09) -    
Total Revenue 5,87,739.17 21,182.82 8,784.87 (11,783.09) 6,05,923.77 4,89,582.19 18,059.16 7,279.26 (8,493.02) 5,06,427.59

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

1. The Company is engaged in the following operating segments:

A  3ALEOF0ETROLEUM0RODUCTS
B  3ALEOF0ETROCHEMICALS
C  /THER"USINESSESWHICHCOMPRISES3ALEOF'AS%XPLOSIVES#RYOGENICS7IND-ILL3OLAR0OWER'ENERATIONAND/IL'AS
%XPLORATION!CTIVITIES
 3EGMENTSHAVEBEENIDENTIlEDANDREPORTEDTAKINGINTOACCOUNTTHENATUREOFPRODUCTSANDSERVICESANDDIFFERINGRISKSANDRETURNS
2. Segment Revenue comprises of the following:
A  4URNOVER)NCLUSIVEOF%XCISE$UTIES
B  .ET#LAIM3URRENDER OF33#
C  3UBSIDY'RANTSRECEIVEDFROM'OVERNMENTS
D  /THER/PERATING2EVENUE
3. Inter segment pricing are at Arm’s length basis
4. There are no reportable geographical segments.
 60th Annual Report 2018-19 259

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 

Directors and others

&INANCE,EASE 59.97 
Receivables
Total Assets 3,15,707.72 2,80,743.31
Segment Liabilities 1,02,810.49 807.51 992.02 1,04,610.02 98,598.87 557.05 1,142.09 1,00,298.01

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) 

Discussion & Analysis

Total Capital Employed 1,08,657.51 1,10,171.02
#APITAL%XPENDITURE 18,644.93 2,111.97 686.00 - 21,442.90      

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

,IQUIlED0ETROLEUM'AS,0' 65,240.79 

!VIATION4URBINE&UEL!4& 30,748.72 
Statements
Standalone
statements

Others 78,403.61 

Total External Revenue 6,05,923.77 5,06,427.59
 260 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 39 : FAIR VALUES
3ETOUTBELOWISACOMPARISONBYCLASSOFTHECARRYINGAMOUNTSANDFAIRVALUEOFTHE#OMPANYSlNANCIALINSTRUMENTSALONGWITHTHEFAIR
value measurement hierarchy:
`IN#RORE
Carrying Value Fair Value Fair Value
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018 measurement
hierarchy level
Financial Assets
!&6/#)lNANCIALINSTRUMENTS
Quoted Equity Shares 18,650.71  18,650.71  Level 1
5NQUOTED%QUITY)NSTRUMENT 651.87  651.87  Level 3
1UOTED'OVERNMENT3ECURITIES 11,263.24  11,263.24  Level 1
Hedging derivatives
#OMMODITYFORWARDCONTRACTS  35.56   35.56   Level 2
Margin Hedging
"&60,lNANCIALINSTRUMENTS
.ON#ONVERTIBLE2EDEEMABLE 558.38  558.38  Level 3
0REFERENCESHARES
Compulsorily Convertible 674.67  674.67  Level 3
$EBENTURES
,OANTO2ELATEDPARTIES 3UNTERA 147.29  147.29  Level 3
$ERIVATIVE)NSTRUMENTSATFAIRVALUE -  -  Level 2
THROUGHPROlTORLOSS
C. Amortised Cost:
Loans to employees 1,275.08  1,277.31  Level 2
0-59,OAN 1,729.76  1,725.37  Level 2

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
RECEIVED3HORT 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
TRANSACTIONBETWEENWILLINGPARTIESOTHERTHANINAFORCEDORLIQUIDATIONSALE
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

Directors and others

B. Level 2 Hierarchy:

Board of
I  $ERIVATIVEINSTRUMENTSATFAIRVALUETHROUGHPROlTORLOSS2EPLACEMENTCOSTQUOTEDBYINSTITUTIONSFORSIMILARINSTRUMENTSBY
EMPLOYINGUSEOFMARKETOBSERVABLEINPUTS
II  Hedging Derivatives at fair value through OCI : 2EPLACEMENTCOSTQUOTEDBYINSTITUTIONSFORSIMILARINSTRUMENTSBYEMPLOYING
USEOFMARKETOBSERVABLEINPUTS
III  Loans to employees/PMUY Loan:$ISCOUNTINGFUTURECASHmOWSUSINGRATESCURRENTLYAVAILABLEFORITEMSONSIMILARTERMSCREDIT

Directors’
RISKANDREMAININGMATURITIES

Report
IV  Finance Lease Obligation:&OROBLIGATIONARRIVEDBASEDON)22IMPLICITRATEAPPLICABLEONTHEREPORTINGDATEANDFOROBLIGATION
ARRIVEDBASEDONINCREMENTALBORROWINGRATEAPPLICABLERATEFORREMAININGMATURITY

Discussion & Analysis

V Non-Convertible Redeemable Bonds, Foreign Currency Bonds - Singapore Dollars, Senior Notes (Bank of America) and Loan

Management’s
from Odisha Government:$ISCOUNTINGFUTURECASHmOWSUSINGRATESCURRENTLYAVAILABLEFORITEMSONSIMILARTERMSCREDITRISKAND
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
REQUIRESMANAGEMENTTOMAKECERTAINASSUMPTIONSABOUTTHEMODELINPUTSINCLUDINGFORECASTCASHmOWSDISCOUNTRATECREDIT
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

CASHmOWS4HEVALUATIONREQUIRESMANAGEMENTTOUSEUNOBSERVABLEINPUTSINTHEMODELOFWHICHTHESIGNIlCANTUNOBSERVABLE
INPUTSAREDISCLOSEDINTHETABLESBELOW-ANAGEMENTREGULARLYASSESSESARANGEOFREASONABLYPOSSIBLEALTERNATIVESFORTHOSE
SIGNIlCANTUNOBSERVABLEINPUTSANDDETERMINESTHEIRIMPACTONTHETOTALFAIRVALUE
Financial financial
Statements
Standalone
statements
 262 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 39 : FAIR VALUES (Contd...)
4HESIGNIlCANTUNOBSERVABLEINPUTSUSEDINTHEFAIRVALUEMEASUREMENTCATEGORISEDWITHIN,EVELOFTHEFAIRVALUEHIERARCHYTOGETHER
WITHAQUANTITATIVESENSITIVITYANALYSISASAT-ARCHAND-ARCHARESHOWNBELOW
Description Valuation 3IGNIlCANT Range (weighted Sensitivity of the input to fair value
technique unobservable average)
inputs
I (ALDIA0ETROCHEMICAL -ARKET Revenue X XINCREASEDECREASE IN2EVENUE
,IMITEDINCLUDED !PPROACHWITH Multiple XX  -ULTIPLEWOULDRESULTININCREASEDECREASE 
UNDER&64/#)ASSETS EQUALWEIGHTS X  INFAIRVALUEBY
in unquoted equity to Revenue XX `4.50 crore/`(4.40) crore
INSTRUMENTS 2EFER.OTE AND%")4$! `CRORE` CRORE
FOR#ARRYING6ALUE Multiple
%")4$!MULTIPLE X  XINCREASEDECREASE IN%")4$!-ULTIPLE
XX  WOULDRESULTININCREASEDECREASE INFAIR
X  VALUEBY
XX `7.50 crore/`(7.40) crore
`CRORE` CRORE
II .ON#ONVERTIBLE $#&METHOD $ISCOUNT2ATE  INCREASEDECREASE INDISCOUNTRATE
2EDEEMABLE0REFERENCE 0OSTTAX   WOULDRESULTINDECREASE INCREASEINFAIR
Shares   VALUEBY
 `(14.00) crore/`14.00 crore
` CRORE`CRORE
III Compulsorily Convertible 0RESENT6ALUE $ISCOUNT2ATE  INCREASEDECREASE IN$ISCOUNT2ATE
$EBENTURES Analysis   WOULDRESULTINDECREASE INCREASEINFAIR
  VALUEBY
 `(5.20) crore/`5.30 crore
` CRORE`CRORE
)6 ,OANTO2ELATEDPARTY  $#&METHOD $ISCOUNT2ATE  INCREASEDECREASE IN$ISCOUNTRATE
Suntera   WOULDRESULTINDECREASE INCREASEINFAIR
  VALUEBY
  `(6.90) crore/`7.60 crore
` CRORE`CRORE

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:

Description FVTOCI Assets FVTPL Assets

Unquoted Equity Non Convertible Redeemable Compulsorily Convertible Loan to
Shares Preference shares Debentures Suntera
"ALANCEASAT-ARCH 726.87 1,082.07 329.21 120.56
Addition      
Redemption/Sales     
&AIR6ALUE#HANGES    
%XCHANGE$IFFERENCE       
"ALANCEASAT-ARCH 651.87 558.38 674.67 147.29
 60th Annual Report 2018-19 263

About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS

Chairman’s Desk
Financial Risk Factors

From the
4HE#OMPANYSPRINCIPALlNANCIALLIABILITIESOTHERTHANDERIVATIVESCOMPRISE"ORROWINGSTRADEANDOTHERPAYABLESSECURITYDEPOSITS
EMPLOYEELIABILITIESANDlNANCELEASEOBLIGATION4HEMAINPURPOSEOFTHESElNANCIALLIABILITIESISTOlNANCETHE#OMPANYSOPERATIONS
ANDTOPROVIDEGUARANTEESTOSUPPORTITSOPERATIONS4HE#OMPANYSPRINCIPALlNANCIALASSETSINCLUDELOANSADVANCESTRADEANDOTHER
RECEIVABLES SHORT TERM DEPOSITS AND CASHCASH EQUIVALENTS THAT DERIVE DIRECTLY FROM ITS OPERATIONS 4HE #OMPANY ALSO HOLDS &64/#)
INVESTMENTSANDENTERSINTODERIVATIVETRANSACTIONS

About IndianOil
4HE#OMPANYISEXPOSEDTOANUMBEROFDIFFERENTlNANCIALRISKSARISINGFROMNATURALBUSINESSEXPOSURESASWELLASITSUSEOFlNANCIAL
INSTRUMENTSINCLUDINGMARKETRISKRELATINGTOINTERESTRATECOMMODITYPRICESFOREIGNCURRENCYEXCHANGERATESANDEQUITYPRICECREDIT
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#OMPANYSPOLICIESRISKOBJECTIVESANDRISKAPPETITE
4HE#OMPANYSREQUIREMENTOFCRUDEOILAREMANAGEDTHROUGHINTEGRATEDFUNCTIONHANDLEDTHROUGHITSINTERNATIONALTRADEANDOPTIMIZATION
DEPARTMENT!LLDERIVATIVEACTIVITIESFORRISKMANAGEMENTPURPOSESARECARRIEDOUTBYSPECIALISTTEAMSTHATHAVETHEAPPROPRIATESKILLS

Directors and others

EXPERIENCEANDSUPERVISION!SPER#OMPANYSPOLICYDERIVATIVESCONTRACTSARETAKENONLYTOHEDGETHEVARIOUSRISKSTHATTHE#OMPANYIS
EXPOSEDTOANDNOTFORSPECULATIONPURPOSE

Board of
4HE"OARDOF$IRECTORSOVERSEETHERISKMANAGEMENTACTIVITIESFORMANAGINGEACHOFTHESERISKSWHICHARESUMMARISEDBELOW
A. Market risk
-ARKETRISKISTHERISKTHATTHEFAIRVALUEOFFUTURECASHmOWSOFAlNANCIALINSTRUMENTWILLmUCTUATEBECAUSEOFCHANGESINMARKETPRICES
4HEMAJORCOMPONENTSOFMARKETRISKAREINTERESTRATERISKFOREIGNCURRENCYRISKCOMMODITYPRICERISKANDOTHERPRICERISKVIZEQUITY
SHARES ETC &INANCIAL INSTRUMENTS AFFECTED BY MARKET RISK INCLUDE "ORROWINGS $EPOSITS &64/#) INVESTMENTS AND DERIVATIVE lNANCIAL

Directors’
INSTRUMENTS

Report
4HESENSITIVITYANALYSISINTHEFOLLOWINGSECTIONSRELATETOTHEPOSITIONASAT-ARCHAND-ARCH

Discussion & Analysis

4HEANALYSISEXCLUDESTHEIMPACTOFMOVEMENTSINMARKETVARIABLESONTHECARRYINGVALUESOFGRATUITYANDOTHERPOST RETIREMENTOBLIGATIONS
PROVISIONSANDOTHERNON lNANCIALASSETSANDLIABILITIESOFFOREIGNOPERATIONS

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#OMPANYMANAGESTOMAINTAINAMIXBETWEENlXEDANDmOATINGRATESFORRUPEEANDFOREIGNCURRENCYLOANSBASEDONLIQUIDITY
AVAILABILITYOFCOSTEFFECTIVEINSTRUMENTSANDCONSIDERINGTHEMARKETREGULATORYCONSTRAINTSETC!SAT-ARCHAPPROXIMATELY

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
VARIABLESHELDCONSTANTONmOATINGRATEBORROWINGSISASFOLLOWS Report on Corporate

Currency of Borrowings Increase/Decrease in %FFECTONPROlTBEFORETAX Increase/Decrease in %FFECTONPROlTBEFORE

Governance

basis points (` in Crore) basis points tax (` in Crore)

March 31, 2019 March 31, 2018
).2 +50 (18.09)  
53$OLLAR +50 (159.39)  
Financial financial

).2 -50 18.09  

53$OLLAR -50 159.39  
Statements
Standalone
statements
 264 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
2. Foreign Currency Risk
 &OREIGNCURRENCYRISKISTHERISKTHATTHEFAIRVALUEORFUTURECASHmOWSOFANEXPOSUREWILLmUCTUATEBECAUSEOFCHANGESINFOREIGN
EXCHANGERATES4HE#OMPANYSEXPOSURETOTHERISKOFCHANGESINFOREIGNEXCHANGERATESRELATESPRIMARILYTOTHE#OMPANYSOPERATING
ACTIVITIESWHENREVENUEOREXPENSEISDENOMINATEDINAFOREIGNCURRENCY AND"ORROWINGS
 4HE#OMPANYMANAGESITSFOREIGNCURRENCYRISKTHROUGHCOMBINATIONOFNATURALHEDGEMANDATORYHEDGINGANDHEDGINGUNDERTAKEN
ONOCCURRENCEOFPRE DETERMINEDTRIGGERS4HEHEDGINGISMOSTLYUNDERTAKENTHROUGHFORWARDCONTRACTS
 4HE#OMPANYHASOUTSTANDINGFORWARDCONTRACTOF`2,873.43 crore ASAT-ARCH-ARCH`CRORE WHICH
HASBEENUNDERTAKENTOHEDGEITSEXPOSURETOBORROWINGSANDOTHERlNANCIALLIABILITIES
 4HESENSITIVITYTOAREASONABLYPOSSIBLECHANGEIN53$).2EXCHANGERATESWITHALLOTHERVARIABLESHELDCONSTANTTHEIMPACTONTHE
#OMPANYSPROlTBEFORETAXISDUETOCHANGESINTHEFAIRVALUEOFMONETARYASSETSANDLIABILITIESINCLUDINGNON DESIGNATEDFOREIGN
CURRENCYDERIVATIVES4HE#OMPANYSEXPOSURETOFOREIGNCURRENCYCHANGESFORALLOTHERCURRENCIESOTHERTHANBELOWISNOTMATERIAL

Currency of Borrowings Increase/Decrease %FFECTONPROlTBEFORE Increase/Decrease %FFECTONPROlTBEFORE

in % tax (` in Crore) in % tax (` in Crore)
March 31, 2019 March 31, 2018
&ORWARD#ONTRACT 53$OLLAR +5% 143.67  
-5% (143.67)  
/THER%XPOSURES 53$OLLAR +5% (3,516.15)  
-5% 3,516.15  
/THER%XPOSURES 3'$ +5% (104.58)  
-5% 104.58  
#ROSS#URRENCY 53$VS3'$ +5% (112.59)  
-5% 112.59  

 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
REASONTHETOTALEFFECTOFEXCHANGERATEmUCTUATIONSISNOTIDENTIlABLESEPARATELYINTHE#OMPANYSREPORTEDRESULTS
3. Commodity Price Risk
4HE#OMPANYISEXPOSEDTOVARIOUSCOMMODITYPRICERELATEDRISKSUCHAS2ElNERY-ARGINSIE$IFFERENTIALBETWEENTHEPRICESOF
PETROLEUMPRODUCTSCRUDEOIL#RUDE/IL0RICEmUCTUATIONONACCOUNTSOFINVENTOTYVALUATIONmUCTUATIONANDCRUDEOILIMPORTSETC
!SPERAPPROVEDRISKMANAGEMENTPOLICYTHE#OMPANYCANUNDERTAKERElNERYMARGINHEDGINGINVENTORYHEDGINGANDCRUDEOILPRICE
HEDGINGTHROUGHSWAPSOPTIONSANDFUTURESINTHE/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 
$UETOVARIATIONINPRICESTHE#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

Directors and others

3UBSIDIARIESARESUSCEPTIBLETOMARKETPRICERISKARISINGFROMUNCERTAINTIESABOUTFUTUREVALUESOFTHEINVESTMENTSECURITIES
 !T THE REPORTING DATE THE EXPOSURE TO UNLISTED EQUITY SECURITIES AT FAIR VALUE WAS `651.87 crore. 3ENSITIVITY ANALYSIS OF THESE
INVESTMENTSHAVEBEENPROVIDEDIN.OTE

Board of
 4HEEXPOSURETOLISTEDEQUITYSECURITIESVALUEDATFAIRVALUEWAS`18,650.71 crore!NINCREASEDECREASEOFONTHE.3%MARKET
INDEXCOULDHAVEANIMPACTOFAPPROXIMATELY`932.54 crore ONTHE/#)ANDEQUITYATTRIBUTABLETOTHE#OMPANY4HESECHANGESWOULD
NOTHAVEANEFFECTONPROlTORLOSS

5. Derivatives and Hedging

Directors’
Report
I  #LASSIlCATIONOFDERIVATIVES
4HE#OMPANYISEXPOSEDTOCERTAINMARKETRISKSRELATINGTOITSONGOINGBUSINESSOPERATIONSASEXPLAINEDABOVE4HE#OMPANYHAS

Discussion & Analysis

APPLIEDHEDGEACCOUNTINGFORDESIGNATEDDERIVATIVECONTRACTSWEF!PRILASPER)ND!3h&INANCIAL)NSTRUMENTSv$UE
TOTHISGAINAMOUNTINGTO`22.04 croreNETOFTAX HASBEENACCOUNTEDIN/THER#OMPREHENSIVEINCOMEWHICHWILLBERECYCLEDTO

Management’s
3TATEMENTOF0ROlTAND,OSSINSUBSEQUENTPERIODSONSETTLEMENTOFRESPECTIVECONTRACTS
 $ERIVATIVESAREONLYUSEDFORECONOMICHEDGINGPURPOSESANDNOTASSPECULATIVEINVESTMENTS(OWEVERWHEREDERIVATIVESDONOTMEET
THEHEDGEACCOUNTINGCRITERIATHEYAREACCOUNTEDFORATFAIRVALUETHROUGHPROlTORLOSS)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

Derivatives designated as hedging instruments

&OREIGNEXCHANGEFORWARDCONTRACTS ,OANS (9.33)
#OMMODITY&ORWARD#ONTRACTS -ARGIN(EDGING 35.56
Financial financial
Statements
Standalone
statements
 266 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
(ii) Hedging activities
 4HEPRIMARYRISKSMANAGEDUSINGDERIVATIVEINSTRUMENTSAREFOREIGNCURRENCYRISKANDCOMMODITYPRICERISK
Commodity Price Risk
 )NDIAN/ILBUYSCRUDEANDSELLSPETROLEUMPRODUCTSLINKEDTOINTERNATIONALBENCHMARKPRICESANDTHESEBENCHMARKPRICESDONOT
MOVEINTANDEM4HISEXPOSES)NDIAN/ILTOTHERISKOFVARIATIONINCRACKSPREADSIEDECREASEINTHEDIFFERENCEBETWEENTHEPRICEOF
ARElNEDPRODUCTANDTHEPRICEOFCRUDE
 4HERISKOFFALLINCRACKSPREADSOFCERTAINPETROLEUMPRODUCTSINHIGHLYPROBABLEFORECASTSALETRANSACTIONSISHEDGEDBYUNDERTAKING
CRACKSPREADFORWARDCONTRACTS4HE#OMPANYWANTSTOPROTECTTHEREALIZATIONOFMARGINSANDTHEREFORETOMITIGATETHISRISKTHE
#OMPANYISTAKINGTHECRACKSPREADFORWARDCONTRACTSTOHEDGETHEMARGINONHIGHLYPROBABLEFORECASTSALEINFUTURE2ISKMANAGEMENT
ACTIVITIESAREUNDERTAKENIN/4#MARKETIETHESEARETHEBILATERALCONTRACTSWITHREGISTEREDCOUNTERPARTIES
 !LLTHESEHEDGESAREACCOUNTEDFORASCASHmOWHEDGES
Foreign Currency Risk
 4HE#OMPANYISEXPOSEDTOVARIOUSFOREIGNCURRENCYRISKSASEXPLAINEDIN!ABOVE!SPER#OMPANYS&OREIGN#URRENCY)NTEREST
2ATE2ISK-ANAGEMENT0OLICYTHE#OMPANYISREQUIREDTOFULLYHEDGETHESHORTTERMFOREIGNCURRENCYLOANSOTHERTHANREVOLVING
LINESAND0#&#LOANS ANDATLEASTOFTHELONGTERMFOREIGNCURRENCYLOANSBASEDONMARKETCONDITIONS
 !PARTFROMMANDATORYHEDGINGOFLOANSTHE#OMPANYALSOUNDERTAKESFOREIGNCURRENCYFORWARDCONTRACTSFORTHEMANAGEMENTOF
CURRENCYPURCHASEFORREPAYMENTOFCRUDEPRODUCTLIABILITIESBASEDONMARKETCONDITIONSANDREQUIREMENTS4HEABOVEHEDGINGSARE
UNDERTAKENTHROUGHDELIVERYBASEDFORWARDCONTRACTS
 !LLTHESEHEDGESAREACCOUNTEDFORASCASHmOWHEDGES
Hedge Effectiveness
4HEREISANECONOMICRELATIONSHIPBETWEENTHEHEDGEDITEMSANDTHEHEDGINGINSTRUMENTSASTHETERMSOFTHEFOREIGNEXCHANGEAND
COMMODITYFORWARDCONTRACTSMATCHTHETERMSOFHEDGEITEMS4HE#OMPANYHASESTABLISHEDAHEDGERATIOOFFORTHEHEDGING
RELATIONSHIPS AS THE UNDERLYING RISK OF THE FOREIGN EXCHANGE AND COMMODITY FORWARD CONTRACTS ARE IDENTICAL TO THE HEDGED RISK
COMPONENTS4OTESTTHEHEDGEEFFECTIVENESSTHE#OMPANYCOMPARESTHECHANGESINTHEFAIRVALUEOFTHEHEDGINGINSTRUMENTSAGAINST
THECHANGESINFAIRVALUEOFTHEHEDGEDITEMSATTRIBUTABLETOTHEHEDGEDRISKS
Source of Hedge ineffetiveness
 )NCASEOFCOMMODITYPRICERISKTHE#OMPANYHASIDENTIlEDTHEFOLLOWINGSOURCESOFINEFFECTIVENESSWHICHARENOTEXPECTEDTOBE
MATERIAL
s $IFFERENCESINTHETIMINGOFTHECASHmOWSOFTHEHEDGEDITEMSANDTHEHEDGINGINSTRUMENTS
s $IFFERENTINDEXESLINKEDTOTHEHEDGEDRISKOFTHEHEDGEDITEMSANDHEDGINGINSTRUMENT
s 4HECOUNTERPARTIESCREDITRISKDIFFERENTLYIMPACTINGTHEFAIRVALUEMOVEMENTSOFTHEHEDGINGINSTRUMENTSANDHEDGEDITEMS
s #HANGESTOTHEFORECASTEDAMOUNTOFCASHmOWSOFHEDGEDITEMSANDHEDGINGINSTRUMENTS
Disclosures of effects of Cash Flow Hedge Accounting
 4HE#OMPANYHASAPPLIEDTHEHEDGEACCOUNTINGPROSPECTIVELYFROMTHE!PRIL4HERELATEDDISCLOSURESAREMADEFORTHE
CURRENTYEARONLY
Hedging instruments
4HE#OMPANYISHOLDINGTHEFOLLOWINGFOREIGNEXCHANGEANDCOMMODITYFORWARDCONTRACTS
 60th Annual Report 2018-19 267

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

Directors and others

.OMINALAMOUNT 713.35 - 200.46
Carrying amount (9.33) - 35.56
,INEITEMINTHE"ALANCE3HEETTHATSINCLUDES Other Current NA Other Current

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

Discussion & Analysis

Liablities

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

,INEITEMINTHESTATEMENTOFPROlTORLOSSTHATINCLUDESTHE Other Expenses Other Expenses Revenue from

RECLASSIlCATIONADJUSTMENTS Operations
Statements
Standalone
statements
 268 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 40 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
B. Credit risk
Trade Receivables
 #USTOMERCREDITRISKISMANAGEDBYEACHBUSINESSUNITSUBJECTTOTHE#OMPANYSESTABLISHEDPOLICYPROCEDURESANDCONTROLRELATING
TOCUSTOMERCREDITRISKMANAGEMENT#REDITQUALITYOFACUSTOMERISASSESSEDBASEDONANEXTENSIVECREDITRATINGSCORECARDAND
INDIVIDUALCREDITLIMITSAREDElNEDINACCORDANCEWITHTHISASSESSMENT/UTSTANDINGCUSTOMERRECEIVABLESAREREGULARLYMONITORED
ANDANYSHIPMENTSTOMAJORCUSTOMERSAREGENERALLYCOVEREDBY,ETTERSOF#REDIT"ANK'UARANTEESOROTHERFORMSOFCREDITINSURANCE
WHEREVERREQUIRED
 !NIMPAIRMENTANALYSISISPERFORMEDATEACHREPORTINGDATEONANINDIVIDUALBASISFORMAJORCLIENTS)NADDITIONALARGENUMBEROF
MINORRECEIVABLESAREGROUPEDINTOHOMOGENOUSGROUPSANDASSESSEDFORIMPAIRMENTCOLLECTIVELY4HEMAXIMUMEXPOSURETOCREDIT
RISKATTHEREPORTINGDATEISTHECARRYINGVALUEOFEACHCLASSOFlNANCIALASSETSDISCLOSEDIN.OTE4HE#OMPANYEVALUATESTHE
CONCENTRATIONOFRISKWITHRESPECTTOTRADERECEIVABLESASLOWASITSCUSTOMERSARELOCATEDINSEVERALJURISDICTIONSANDINDUSTRIESAND
OPERATEINLARGELYINDEPENDENTMARKETS
` IN#RORE
0 - 90 days 91 days to Above 6 months Above 1 Year > 3 years Total
6 months to 1 Year to 3 Years
Year ended March 31, 2019
'ROSS#ARRYINGAMOUNT      
%XPECTEDLOSSRATE     
%XPECTEDCREDITLOSSES      
3PECIlC0ROVISION   
Carrying amount 12,293.45 1,837.46 1,061.84 159.78 95.49 15,448.02
Year ended March 31, 2018
'ROSS#ARRYINGAMOUNT      
%XPECTEDLOSSRATE     
%XPECTEDCREDITLOSSES      
3PECIlC0ROVISION  
Carrying amount 8,236.58 1,017.65 629.64 86.31 146.34 10,116.52
Financial instruments and cash deposits
 #REDITRISKFROMBALANCESWITHBANKSANDlNANCIALINSTITUTIONSISMANAGEDBYTHE#OMPANYSTREASURYDEPARTMENTINACCORDANCEWITH
THE#OMPANYSPOLICY)NVESTMENTSOFSURPLUSFUNDSAREMADEONLYWITHAPPROVEDCOUNTERPARTIESANDWITHINCREDITLIMITSASSIGNEDTO
EACHCOUNTERPARTY#OUNTERPARTYCREDITLIMITSAREAPPROVEDBYTHE#OMPANYS"OARDOF$IRECTORS4HELIMITSARESETTOMINIMISETHE
CONCENTRATIONOFRISKSANDTHEREFOREMITIGATElNANCIALLOSSTHROUGHCOUNTERPARTYSPOTENTIALFAILURETOMAKEPAYMENTS
 4HE#OMPANYSMAXIMUMEXPOSURETOCREDITRISKFORTHECOMPONENTSOFTHE"ALANCE3HEETAT-ARCHAND-ARCH
ISTHECARRYINGAMOUNTSASPROVIDEDIN.OTE
C. Liquidity risk
4HE#OMPANYMONITORSITSRISKOFASHORTAGEOFFUNDSUSINGALIQUIDITYPLANNINGTOOL4HE#OMPANYSEEKSTOMANAGEITSLIQUIDITY
REQUIREMENT BY MAINTAINING ACCESS TO BOTH SHORT TERM AND LONG TERM DEBT MARKETS )N ADDITION #OMPANY HAS COMMITTED CREDIT
FACILITIESFROMBANKS
 4HE#OMPANYSOBJECTIVEISTOMAINTAINABALANCEBETWEENCONTINUITYOFFUNDINGANDmEXIBILITYTHROUGHTHEUSEOFBANKOVERDRAFTS
COMMERCIALPAPERSBANKLOANSDEBENTURESANDlNANCELEASES4HE#OMPANYASSESSEDTHECONCENTRATIONOFRISKWITHRESPECTTO
RElNANCINGITSDEBTANDCONCLUDEDITTOBELOW4HE#OMPANYHASACCESSTOASUFlCIENTVARIETYOFSOURCESOFFUNDING
 60th Annual Report 2018-19 269

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

Directors and others

"ASEDONTHEMAXIMUMAMOUNTTHATCANBECALLEDFORUNDERTHElNANCIALGUARANTEECONTRACT

D. Excessive risk concentration

Board of
 #ONCENTRATIONSARISEWHENANUMBEROFCOUNTERPARTIESAREENGAGEDINSIMILARBUSINESSACTIVITIESORACTIVITIESINTHESAMEGEOGRAPHICAL
REGIONORHAVEECONOMICFEATURESTHATWOULDCAUSETHEIRABILITYTOMEETCONTRACTUALOBLIGATIONSTOBESIMILARLYAFFECTEDBYCHANGESIN
ECONOMICPOLITICALOROTHERCONDITIONS#ONCENTRATIONSINDICATETHERELATIVESENSITIVITYOFTHE#OMPANYSPERFORMANCETODEVELOPMENTS
AFFECTINGAPARTICULARINDUSTRY
 )NORDERTOAVOIDEXCESSIVECONCENTRATIONSOFRISKTHE#OMPANYSPOLICIESANDPROCEDURESINCLUDESPECIlCGUIDELINESTOFOCUSONTHE

Directors’
MAINTENANCEOFADIVERSIlEDPORTFOLIO)DENTIlEDCONCENTRATIONSOFCREDITRISKSARECONTROLLEDANDMANAGEDACCORDINGLY

Report
E. Collateral
 !S#OMPANYHASBEENRATEDINVESTMENTGRADEBYVARIOUSDOMESTICANDINTERNATIONALRATINGAGENCIESTHEREHASBEENNOREQUIREMENTOF

Discussion & Analysis

SUBMITTINGANYCOLLATERALFORBOOKINGOFDERIVATIVECONTRACTS#OMPANYUNDERTAKESDERIVATIVESCONTRACTONLYWITHTHOSECOUNTERPARTIES
THATHAVECREDITRATINGABOVETHEINTERNALLYAPPROVEDTHRESHOLDRATING!CCORDINGLY#OMPANYDOESNOTSEEKANYCOLLATERALSFROMITS

Management’s
COUNTERPARTIES

NOTE - 41 : CAPITAL MANAGEMENT

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
MAINTAINORADJUSTTHECAPITALSTRUCTURETHE#OMPANYMAYADJUSTTHEDIVIDENDPAYMENTTOSHAREHOLDERSRETURNCAPITALTOSHAREHOLDERSOR
ISSUENEWSHARES4HE#OMPANYMONITORSCAPITALUSINGDEBTEQUITYRATIOWHICHISBORROWINGSDIVIDEDBY%QUITY4HE#OMPANYSENDEAVOUR Report on Corporate
ISTOKEEPTHEDEBTEQUITYRATIOAROUND
`IN#RORE
Governance

March 31, 2019 March 31, 2018

Borrowings 86,358.72 58,030.38
Equity Share Capital 9,181.04 
Reserves and Surplus 99,476.47 
Financial financial

Equity 1,08,657.51 1,10,171.02

Debt Equity Ratio 0.79 : 1 0.53 : 1
Statements
Standalone
statements

.OCHANGESWEREMADEINTHEOBJECTIVESPOLICIESORPROCESSESFORMANAGINGCAPITALDURINGTHEYEARSENDED-ARCHAND-ARCH


 270 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 42 : DISCLOSURES AS REQUIRED BY REGULATION 34(3) OF SEBI (LODR) REGULATIONS, 2015
)NCOMPLIANCEOF2EGULATION OF3%"),/$2 2EGULATIONSTHEREQUIREDINFORMATIONAREGIVENASUNDER
`IN#RORE
Amount as at Maximum Amount outstanding
during the year ended
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
I. Loans and Advances in the nature of loans:
A) To Subsidiary Companies
B) To Associates/Joint Venture
I 0ETRONET6+,TD.OREPAYMENTSCHEDULE 89.84  89.84 
AVAILABLE
II 3UNTERA.IGERIA,TD&OR%XPLORATION 137.92  139.16 
ACTIVITIES 2EFER.OTE 
III )NDIAN/IL,.'0RIVATE,IMITED&OR,.' -   - 
TERMINALCONSTRUCTION
IV )NDIAN/ILTANKING,IMITED 1.50   1.50  
&ORMERLYKNOWNAS)/4)NFRASTRUCTUREAND
%NERGY3ERVICES,TD
C) To Firms/Companies in which directors are -   -  
interested
II. Investment by the loanee (as detailed above) in the -   -  
shares of IOC and its subsidiaries
Note
 !SPERTHEAPPLICABLEPROVISIONSOF)NDIAN!CCOUNTING3TANDARDSTHELOANGIVENTO3UNTERA.IGERIA,TDISMEASUREDATFAIR
VALUETHROUGH3TATEMENTOF0ROlTAND,OSSINTHElNANCIALSTATEMENTSANDFAIRVALUEOFTHELOANIS`147.29 crore ASON-ARCH
`CRORE 2EFER.OTE FORFURTHERDETAILSREGARDINGFAIRVALUATION

NOTE - 43 : DUES TO MICRO AND SMALL ENTERPRISES

`IN#RORE
Particular March 31, 2019 March 31, 2018
0RINCIPAL
286.91 
)NTERESTONABOVE0RINCIPAL -  
0AYMENTSMADEDURINGTHEYEARAFTERTHEDUEDATE
0RINCIPAL - 
)NTEREST -  
)NTERESTDUEANDPAYABLEFORPRINCIPALSALREADYPAID - 
4OTAL)NTERESTACCRUEDANDREMAINEDUNPAIDATYEAREND - 
&URTHER)NTERESTREMAININGDUEANDPAYABLEINSUCCEEDINGYEAR -  

!MOUNTOF`51.67 crore`CRORE INCLUDEDIN.OTE/THER&INANCIAL,IABILITIES.

 60th Annual Report 2018-19 271

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 "UILDING2OADSETC      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 

Directors and others

 $RAINAGE3EWAGE        1.42       -  
Sub Total 1,055.02 69.42 13.85 23.07 115.22 27.55 54.96 13.85 68.66 124.38
(b) Intangible Assets

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

Discussion & Analysis

S. Asset Block Gross Additions Transferred Transfer/ Gross Work-in- Additions Transferred Work-in- Total Capital
No. Block as during the from CWIP Deduction/ Block as Progress during to Fixed Progress Expenditure
at 1 Apr year Disposal during at 31 Mar as at 1 the year Assets as at 31

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 "UILDING2OADSETC          
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

2 ,ICENSES4ECHNICAL                  

+NOW HOW
3 #OMPUTER3OFTWARE                
Sub Total 1.66 0.28 - - 1.94 - - - - 0.28
Financial financial

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 44 : RESEARCH AND DEVELOPMENT COSTS (Contd...)
B. RECURRING EXPENSES
` IN#RORE
Particualrs March 31, 2019 March 31, 2018
#ONSUMPTIONOF3TORES3PARES#ONSUMABLES 13.17 
2EPAIRS-AINTENANCE
A 0LANT-ACHINERY 14.11 
B "UILDING 9.00 
C /THERS 2.34 
&REIGHT4RANSPORTATION#HARGESDEMURRAGE 0.22 
0AYMENTTOAND0ROVISIONSFOREMPLOYEES 184.25 
/FlCE!DMINISTRATION3ELLINGAND/THER%XPENSES 77.08 
)NTEREST 0.02 
TOTAL 300.19 230.86

C. TOTAL RESEARCH EXPENSES

` IN#RORE
Particualrs March 31, 2019 March 31, 2018
#APITAL%XPENDITURE 137.15 
2ECURRING%XPENDITURE 300.19 
TOTAL 437.34 316.63
 60th Annual Report 2018-19 273

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

(b) Amount spent during the year on:

` IN#RORE
Particulars March 31, 2019 March 31, 2018

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

Directors and others

Health and Sanitation 92.53 0.54 93.07   
#ONTRIBUTIONTOWARDS0-59 85.92 - 85.92    
&LAGSHIP0ROJECTS #32 13.10 1.52 14.62   

Board of
Educational Scholarship 2.68 - 2.68    
3WACHH"HARAT 7.53 0.73 8.26   
%DUCATIONEMPLOYMENTVOCATIONALSKILLS 204.71 2.85 207.56   
!DMINISTRATION%XPENSESTRAININGETC 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   

Discussion & Analysis

Total Expenses (ii) 484.07 6.53 490.60 287.13 43.92 331.05

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 46 : DISCLOSURE ON GOVERNMENT GRANTS
A. Revenue Grants
1 Subsidies on sales of SKO (PDS) and LPG (Domestic)
 3UBSIDIESONSALESOF3+/0$3 AND,0'$OMESTIC IN)NDIAAMOUNTINGTO`128.21 crore`CRORE ANDSUBSIDIES
ONSALESOF3+/AND,0'TOCUSTOMERSIN"HUTANAMOUNTINGTO`21.79 crore `CRORE HAVEBEENRECKONEDASPER
THESCHEMESNOTIlEDBY'OVERNMENTS
2 Compensation against under recoveries
 4HECOMPANYHASACCOUNTEDFOR"UDGETARY3UPPORTOF`4,110.18 crore`CRORE TOWARDSUNDER RECOVERYONSALE
OF3+/0$3 INTHE3TATEMENTOF0ROlTAND,OSSAS2EVENUE'RANT
  %XPORTOF.OTIlED'OODSUNDER-%)3#LAIMS
 4HECOMPANYHASRECOGNISED`6.32 crore.), ONEXPORTOFNOTIlEDGOODSUNDER-ERCHANDISE%XPORTSFROM)NDIA3CHEME
-%)3 INTHE3TATEMENTOF0ROlTAND,OSSAS2EVENUE'RANT
4 Stidend to apprentices under NATS scheme
 4HECOMPANYHASRECEIVEDGRANTOF`8.57 crore.), INRESPECTOFSTIPENDPAIDTOAPPRENTICESREGISTEREDUNDER.ATIONAL
!PPRENTICESHIP4RAINING3CHEME.!43 ANDTHESAMEHASBEENACCOUNTEDONNETBASISAGAINSTTRAININGEXPENSES
5 Grant in respect of revenue expenditure for research projects
 $URINGTHEYEARTHECOMPANYHASRECEIVEDREVENUEGRANTOF`0.95 crore `CRORE INRESPECTOFMEETINGOUTREVENUE
EXPENDITURESUCHAS-ANPOWER#ONSUMABLES4RAVEL#ONTINGENCYETCFORRESEARCHPROJECTSUNDERTAKENWITHVARIOUSAGENCIES
6 Incentive on sale of power
 #OMPANY IS GETTING INCENTIVE FROM $EPARTMENT OF 2ENEWABLE %NERGY '/) FOR WIND POWER GENERATION OF %LECTRICITY AT THE
RATE OF ` PAISE FOR PER UNIT OF POWER GENERATED 4HE #OMPANY HAS RECEIVED GRANT OF `3.08 crore during the current year
`CRORE 
7 EPCG Grant
 'RANTRECOGNIZEDINRESPECTOFDUTYWAIVERONPROCUREMENTOFCAPITALGOODSUNDER%0#'SCHEMEOF#ENTRAL'OVTWHICHALLOWS
PROCUREMENTOFCAPITALGOODSINCLUDINGSPARESFORPREPRODUCTIONANDPOSTPRODUCTIONATZERODUTYSUBJECTTOANEXPORTOBLIGATION
OFTIMESOFTHEDUTYSAVEDONCAPITALGOODSPROCURED4HEUNAMORTIZEDGRANTAMOUNTASON-ARCHIS`57.56 crore
`CRORE $URINGTHEYEARTHECOMPANYHASRECOGNISED`200.43 crore`CRORE INTHESTATEMENT
OFPROlTANDLOSSASAMORTISATIONOFREVENUEGRANT4HECOMPANYEXPECTSTOMEETTHEEXPORTOBLIGATIONSANDTHEREFOREEQUIVALENT
DEFERREDGRANTHASNOTBEENTREATEDASLIABILITY
  %XCISEDUTYBENElTIN.ORTH%AST
 %XCISEDUTYEXEMPTIONOFOFGOODSMANUFACTUREDANDCLEAREDFROMNORTHEASTRElNERIESHASBEENRECKONEDATFULLVALUEIN
REVENUEANDONNETBASISINEXPENSESUNDER@%XCISE$UTYTOTHEEXTENTOFDUTYPAID &INANCIALIMPACTFORTHECURRENTYEARIS
`2,831.40 crore`CRORE 
9 Entry Tax exemption
 4HECOMPANYHASRECOGNISEDGRANTONNETBASISINRESPECTOFENTRYTAXEXEMPTIONOFCRUDE.APTHAPURCHASEDIN0ANIPAT2ElNERY
0ANIPAT .APTHA #RACKER #OMPLEX AND 0ARADIP 2ElNERY IN COST OF MATERIALS CONSUMED0URCHASE OF 3TOCK IN 4RADE %NTRY TAX
EXEMPTIONONCRUDE.APTHAPROCUREDINTHESTATEOF(ARYANAAND/DISHAHASBEENRECEIVEDAMOUNTINGTO.),`
CRORE 
B. Capital Grants
1 OIDB Government Grant for strengthening distribution of SKO (PDS)
 4HECOMPANYHASRECEIVEDGOVERNMENTGRANTFROM/)$"/IL)NDUSTRY$IRECTORATE"OARD FORSTRENGTHENINGDISTRIBUTIONOF0$3
+EROSENEASPERTHEDIRECTIONSOF-O0.'TOBEUSEDINCONSTRUCTIONOF+,UNDERGROUND4ANK-ECHANICAL$ISPENSING5NITS
AND"ARREL3HED4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`1.28 crore`CRORE $URINGTHE
YEARTHECOMPANYHASRECOGNISED`0.28 crore`CRORE INSTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITAL
GRANTS
 60th Annual Report 2018-19 275

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$"4,SCHEMELAUNCHEDBY-/0.'TOWARDSDEVELOPMENTACQUISITION
OFSOFTWARELICENSESDATAPROCESSINGEQUIPMENTFOREFFECTIVEIMPLEMENTATIONOFPLATFORMFORDISPESNINGOFSUBSIDYTOCUSTOMERS
PURCHASING,0'UNDER$"4,SCHEME4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHISNIL .), $URING
THEYEARTHECOMPANYHASRECOGNISEDNIL`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$3)2 4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`52.52 crore`CRORE 4HE
GOODSSOIMPORTEDORPROCUREDFROMLOCALMANUFACTURERSHALLNOTBETRANSFERREDORSOLDFORAPERIODOFlVEYEARSFROMDATEOF
INSTALLATION$URINGTHEYEARTHECOMPANYHASRECOGNISED`7.41 crore`CRORE INTHESTATEMENTOFPROlTANDLOSS

Description of
ASAMORTISATIONOFCAPITALGRANTS

Capitals
4 Capital Grant in respect of Research projects
 4HECOMPANYHASRECEIVEDCAPITALGRANTFROMVARIOUSAGENCIESINRESPECTOFPROCUREMENTSETTINGUPOF#APITALASSETSFORRESEARCH

Directors and others

PROJECTSUNDERTAKEN4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`13.61 crore`CRORE 
$URINGTHEYEARTHECOMPANYHASRECOGNISED`3.64 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATION
OFCAPITALGRANTS

Board of
5 Capital Grant in respect of Entry Tax Exemption from Odisha Govt.
 %NTRY4AXEXEMPTIONRECEIVEDFROM/DISHA'OVERNMENTFOR0ARADIP2ElNERY0ROJECTHASBEENRECOGNIZEDAS#APITAL'RANTAND
GROSSEDUPWITHTHECONCERNED!SSETS4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`116.31 crore
`CRORE $URINGTHEYEARTHECOMPANYHASRECOGNISED`5.29 crore`CRORE INTHESTATEMENTOFPROlTAND
LOSSASAMORTISATIONOFCAPITALGRANTS

Directors’
6 Capital Grant in respect of demonstration unit

Report
 'RANTRECEIVEDFROM/)$"FORSETTINGUPOFDEMONSTRATIONUNITAT'UWAHATIRElNERYWITHTHECOMPANYS2$DEVELOPED)NDA$EPT'
TECHNOLOGY4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`78.65 crore`CRORE $URINGTHE

Discussion & Analysis

YEARTHECOMPANYHASRECOGNISED`4.38 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITAL
GRANTS

Management’s
7 Capital Grant in respect of interest subsidy
 4HECOMPANYHASRECEIVEDCAPITALGRANTINRESPECTOFINTERESTSUBSIDYONLOANSTAKENFROM/)$"4HEUNAMORTIZEDCAPITALGRANT
AMOUNTASON-ARCHIS`6.21 crore`CRORE $URINGTHEYEARTHECOMPANYHASRECOGNISED`0.27 crore

Responsibility Report
`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITALGRANTS
8 Capital Grant in form of Interest Free Loan
 4HECOMPANYHASRECEIVEDCAPITALGRANTINTHEFORMOFINTERESTFREELOANSFROM/RISSA'OVERNMENTFORAPERIODOFYEARS

Business
4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`1,352.98 crore`CRORE $URINGTHEYEAR
the company has recognised `78.56 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSACCOUNTASAMORTISATIONOF
CAPITALGRANTS Report on Corporate

9 Capital Grant in respect of Solar Power Generation

Governance

 4HECOMPANYHASRECEIVEDCAPITALlNANCIALASSISTANCEFROM-INISTRYOF.EWAND2ENEWABLE%NERGYINRESPECTOFPROCUREMENT
ANDINSTALLATIONOF3OLAR0ANELSFOR0OWER'ENERATION4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`4.34
crore `CRORE $URINGTHEYEARTHECOMPANYHASRECOGNISED`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

#.'( #.' FROM-INISTRYOF4RANSPORT#ORPORATION.#4 $%,() ASPERTHEDIRECTIONOF(ONBLE3UPREME#OURT4HE#OMPANY

HASNOTAMORTIZEDANYAMOUNTINSTATEMENTOF0ROlT,OSSACCOUNTASTHEPROJECTISUNDEREXECUTION
 276 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 47 : REVENUE FROM CONTRACTS WITH CUSTOMERS
4HE#OMPANYISINTHEBUSINESSOFOILANDGASANDITEARNSREVENUEPRIMARILYFROMSALEOFPETROLEUMPRODUCTSPETROCHEMICALSANDOTHERS
COMPRISINGOF'AS%0AND/THERS2EVENUEARERECOGNIZEDWHENCONTROLOFTHEGOODSANDSERVICESARETRANSFERREDTOTHECUSTOMERATAN
AMOUNTTHATREmECTSTHECONSIDERATIONTOWHICHTHECOMPANYEXPECTSTOBEENTITLEDINEXCHANGEFORTHOSEGOODSANDSERVICES2EVENUEIS
MEASUREDBASEDONTHECONSIDERATIONSPECIlEDINACONTRACTWITHACUSTOMERANDEXCLUDESAMOUNTSCOLLECTEDONBEHALFOFTHIRDPARTIES
)NDETERMININGTHETRANSACTIONPRICEFORTHESALEOFPRODUCTSTHECOMPANYCONSIDERSTHEEFFECTSOFVARIABLECONSIDERATIONTHEEXISTENCE
OFSIGNIlCANTlNANCINGCOMPONENTSNON CASHCONSIDERATIONANDCONSIDERATIONPAYABLETOTHECUSTOMERIFANY 
'ENERALLY#OMPANYENTERSINTOCONTRACTWITHCUSTOMERS
A /NDELIVEREDBASISINCASEOF2ETAIL3ALES,0'AND!VIATION
B /N%8 -)ASWELLASDELIVEREDBASISINCASEOF,UBESAND#ONSUMERS
C /N&/"OR#)&BASISDEPENDINGONTERMSOFCONTRACTINCASEOF%XPORTSALES
 -AJORITY OF #OMPANYS SALES ARE TO RETAIL CATEGORY WHICH ARE MOSTLY ON CASH AND CARRY BASIS #OMPANY ALSO EXECUTE SUPPLY TO
)NSTITUTIONAL"USINESSES)" ,UBES!VIATIONONCREDITWHICHAREFORLESSTHANAYEAR
&OR MAINTAINING UNINTERRUPTED SUPPLY OF PRODUCTS CUSTOMERS GENERALLY DEPOSIT AMOUNT IN ADVANCE WITH THE #OMPANY AGAINST WHICH
ORDERSFORPURCHASEOFPRODUCTSAREPLACEDBYTHECUSTOMERS"ASEDONTHESEORDERSSUPPLYISMAINTAINEDBYTHE#OMPANYANDREVENUE
ISRECOGNISEDWHENTHEGOODSAREDELIVEREDTOTHECUSTOMERBYADJUSTINGTHEADVANCEFROMCUSTOMERS
#OMPANYALSOEXTENDVOLUMESLABBASEDDISCOUNTSTOITSCUSTOMERSONCONTRACTTOCONTRACTBASISFORUPLIFTMENTOFPRODUCTSANDITIS
ADJUSTEDINREVENUEASPERTHETERMSOFTHECONTRACT#OMPANYALSORUNSLOYALTYPROGRAMMESANDINCENTIVESCHEMESFORITSRETAILAND
BULKCUSTOMERS,OYALTYPOINTSAREGENERATEDANDACCUMULATEDBYTHECUSTOMERSONDOINGTRANSACTIONSAT#OMPANYSOUTLETWHICHCAN
BEREDEEMEDSUBSEQUENTLYFORFUELPURCHASESFROM#OMPANYOUTLETS2EVENUEISRECOGNISEDNETOFTHESELOYALTYPOINTSANDINCENTIVE
SCHEMES
"ESIDETHISTHOUGHNOTSIGNIlCANT#OMPANYALSOUNDERTAKESCONSTRUCTIONCONTRACTSONDEPOSITBASIS2EVENUEISRECOGNISEDFORTHESE
CONTRACTSONINPUTBASEDONCOSTINCURRED3IMILARLYNON REFUNDABLEDEPOSITSRECEIVEDFROM2ETAIL/UTLETS2/S ARERECOGNISEDASREVENUE
OVERTIME
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
Total Revenue (A+E) 6,05,923.77 
2EVENUEFROMCONTRACTWITHCUSTOMERS! 5,98,429.57 
2ECOGNISEDFROMCONTRACTLIABILITYBALANCEOFPREVIOUSYEAR" 2,896.82 
2ECOGNISEDFROMPERFORMANCEOBLIGATIONSATISlEDINPREVIOUSYEARS# -
2ECOGNISEDFROMCONTRACTSINITIATEDINCURRENTYEAR$ 5,95,532.75 
2EVENUEFROMOTHERCONTRACTSFROMOTHERS% 7,494.20 

!N AMOUNT OF `58.67 crore  ` CRORE  ON ACCOUNT OF IMPAIRMENT LOSSES ON RECEIVABLES IS RECOGNISED UNDER 0ROVISION FOR
$OUBTFUL$EBTS!DVANCES#LAIMS#7)03TORESETC2EFER.OTE
4HE#OMPANYDISCLOSEINFORMATIONONREPORTABLESEGMENTASPER)ND!3UNDER.OTE 3EGMENTAL)NFORMATION!NAMOUNTOF
`108.82 crore ISRECOGNISEDOVERTIMEUNDER2EVENUEFROMCONTRACTWITHCUSTOMERS

Receivables Contract Asset Contract Liability

Opening Balance  
Closing Balance  
4HEPERFORMANCEOBLIGATIONISPARTOFTHECONTRACTANDTHEORIGINALEXPECTEDDURATIONISONEYEARORLESSINCASEOFDELIVEREDSALESADVANCE
FROMCUSTOMERS)NCASEOFCONSTRUCTIONCONTRACTSDEPOSITWORKSTHECOMPANYHASARIGHTTOCONSIDERATIONFROMCUSTOMERTHATCORRESPOND
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 !CCOUNTING 3TANDARD )ND !3  h2EVENUE FROM #ONTRACTS WITH #USTOMERSv BECAME EFFECTIVE FROM !PRIL   AND THE
COMPANYHASADOPTEDTHESAMEUSINGCUMULATIVECATCH UPTRANSITIONMETHOD4HISADOPTIONHASREDUCED2EVENUEFROM/PERATIONFORTHE
current year by `25.37 crore.
 60th Annual Report 2018-19 277

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!PRILREMAMDEDTHEMATTERBACKTO(ONBLE!LLAHABAD(IGH#OURTTODECIDETHE
INTERESTAFRESHONMERIT!CCORDINGLY)/#,lLEDSTAYAPPLICATIONIN(ONBLE!LLAHABAD(IGH#OURTON!PRILFORSTAYOF
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
4RIBUNAL0ATNAONDIRECTIONBY(ONBLE3UPREME#OURT ANDACCORDINGLYANAMOUNTOF`1,155.02 croreBEINGPROVISIONNOMORE
REQUIREDHASBEENWRITTENBACKANDINCLUDEDINPROVISIONFORCONTINGENCIESWRITTENBACKIN/THER/PERATING2EVENUE
 4HEREVISIONOF%MPLOYEES0AYAND!LLOWANCESWASDUEWEF*ANUARY"ASEDONPRESIDENTIALDIRECTIVEISSUEDON/CTOBER
DUESINRESPECTOFEXECUTIVESHAVEBEENSETTLED(OWEVERTHEREVISIONOFPAYANDALLOWANCESFORWORKMENISUNDERlNALISATION
WHERELIABILITIESHAVEBEENASCERTAINEDONSIMILARLINES!NAMOUNTOF`1,650.00#ROREHASBEENCARRIEDASLIABILITYASON-ARCH

Description of
TOWARDSDUESONTHISACCOUNT

Capitals
 $URINGTHEYEARTHE#OMPANYHASCONSIDEREDTHEDEPOSITSAGAINSTITSLIABILITYFORLEAVEENCASHMENTFUNDASQUALIFYINGINSURANCE
POLICYASPER)ND!3!CCORDINGLYITHASNETTEDOFFLIABILITYFORLEAVEENCASHMENTAGAINSTDEPOSITSFORLEAVEENCASHMENTFUND
AND THE AMOUNT DEPOSITED IN EXCESS OF LEAVE ENCASHMENT LIABILITY IS SHOWN UNDER !DVANCE TO %MPLOYEE "ENElT 4RUST&UND

Directors and others

2EFER.OTE
 $URINGTHEYEARTHE#OMPANYHASREVIEWEDITSIMPAIRMENTPOLICYFOR0ROPERTY0LANTAND%QUIPMENT00% ANDHASCHANGEDITS

Board of
ESTIMATEFORCASHmOWPROJECTIONSTOYEARSASAGAINSTYEARSEARLIER4HISBEINGTHElRSTYEAROFCHANGETHE#OMPANYALSOTESTED
FORIMPAIRMENTCONSIDERINGCASHmOWPROJECTIONOFYEARSWHERETHERECOVERABLEAMOUNTEXCEEDEDTHECARRYINGVALUEASON-ARCH
!CCORDINGLYTHEREWASNOIMPACTOFTHISCHANGEINTHEVALUEOFIMPAIRMENTAND00%DURINGTHEYEAR
 'OODSAND3ERVICES4AX'34 HASBEENIMPLEMENTEDWEF*ULYWHEREINSOMEOFTHEPETROLEUMPRODUCTSARESTILLOUTSIDEITS
AMBIT!CCORDINGLY'34ISBEINGLEVIEDONSOMEPRODUCTSASAGAINST%XCISE$UTYAPPLICABLEHITHERTO3INCEEXCISEDUTYISINCLUDED

Directors’
INREVENUEAND'34ISNOTINCLUDEDINREVENUE4HUSTOENSURECOMPARABILITYONAPPLICABLEPRODUCTSSALESEXCLUDINGEXCISEDUTYIS

Report
`5,96,219.96 Crore and `#ROREFORTHEYEARENDED-ARCHAND-ARCHRESPECTIVELY
 )NORDERTOPROVIDECLEANCOOKINGFUELTO"0,FAMILIES'OVERNMENTHASAPPROVEDh0RADHAN-ANTRI5JJWALA9OJANA0-59 vSCHEME

Discussion & Analysis

WHERE FREE ,0' CONNECTIONS ARE ISSUED BY /IL -ARKETING #OMPANIES /-#S  TO THE WOMEN BELONGING TO THE "ELOW 0OVERTY ,INE

Management’s
"0, HOUSEHOLDSASPER3%## 2URAL DATABASE4HESCHEMEWASLAUNCHEDON-AY$URINGTHEYEARTHESCHEME
WASALSOEXTENDEDFORMALESWHERETHEREISNOWOMENINTHEFAMILY!SPERTHESCHEMETHEINITIALCOSTTOWARDSCONNECTIONCHARGES
2EFUNDABLEDEPOSIT WOULDBEBORNEBYTHE#ENTRAL'OVERNMENTFOREACHCARDHOLDER&EW3TATE'OVTSHASALSOEXTENDEDTHISSCHEME
TOOTHERBENEFECIARIES!SPERTHESCHEME/-#SWOULDPROVIDEANOPTIONFOR%-),OANSTOWARDSCOSTOFBURNERANDstRElLLTOTHE
0-59CONSUMERS4HELOANAMOUNTISTOBERECOVEREDFROMTHESUBSIDYAMOUNTPAYABLEBYTHEGOVERNMENTTOTHECUSTOMERSONEACH

Responsibility Report
RElLLSALE$URINGTHEYEARDISCOUNTINGOFTHELOANHASBEENDONEBASEDONASSUMPTIONOFRElLLSINAYEARANDAVERAGESUBSIDYOF
`PERCYLINDERASLOANRECOVERY

Business
 4HEAMOUNTOFOUTSTANDINGASON-ARCHTOWARDS0-59CLAIMFROM#ENTRAL'OVERNMENTIS`1,495.63#RORE`
#ROREASON-ARCH ANDLOANFROM0-59CONSUMERSIS`3,111.32#RORE`#ROREASON-ARCH NETOF
RECOVERYTHROUGHSUBSIDY !GAINSTTHEABOVELOANAPROVISIONFORDOUBTFULAMOUNTINGTO`1,141.71 #RORE`#RORE 
HASBEENCREATEDASON-ARCHAGAINSTTHEBENElCIARIESWHOHAVENOTTAKENANYRElLLDURINGPASTSIXMONTHS
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(OWEVERTHE
FORMATIONOFTHE*6ISSTILLPENDINGINVIEWOFDELIBERATIONSAT.)4)!YOGINTHEMATTER!CCORDINGLYTHEEXPLOSIVEBUSINESSCONTINUES
TOBEINOPERATIONASON-ARCH
Financial financial
Statements
Standalone
statements
 278 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 48 : OTHER DISCLOSURES (Contd...)
 )NDIAN/ILHASDECIDEDTOEXITTHE*OINT6ENTUREWITH)NDIAN/IL2UCHI"IOFUELS,,0ANDHASGIVENNOTICEOFITSEXITFROMTHE,IMITED
,IABILITY0ARTNERSHIP,,0 TOTHEOTHER*6PARTNERVIZ2UCHI3OYA)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBERSTATING
THATITWILLEXITTHE,,0WEF*ANUARY4HEENTIREINVESTMENTOF`#ROREHASBEENWRITTENOFF!CCORDINGLYPROVISION
MADEFORDIMUNITIONINVALUEOFINVESTMENTINPASTOF`#ROREINEARLIERYEARISWRITTENBACKINOTHERINCOME2EFER.OTE
(Refer Note 24)
 0URCHASEOFCRUDEOILFROM/IL)NDIA,IMITEDANDSOMEOTHEROILlELDSHASBEENACCOUNTEDFORPROVISIONALLYPENDINGlNALIZATIONOF
AGREEMENTSWITHRESPECTIVEPARTIES!DJUSTMENTSIFANYWILLBEMADEONlNALIZATIONOFAGREEMENTS
 4RANSACTIONSWITHOTHER/IL-ARKETING#OMPANIESAREJOINTLYRECONCILEDONANONGOINGBASIS
 4HEREARENOSIGNIlCANTSUBSEQUENTEVENTSTHATWOULDREQUIREADJUSTMENTSORDISCLOSURESINTHE&INANCIAL3TATEMENTSASONTHE
"ALANCE3HEETDATE
 0REVIOUSYEARSCOMPARATIVElGURESHAVEBEENREGROUPEDWHEREVERNECESSARY&IGURESINBRACKETSINDICATEDEDUCTIONS

3D 3D 3D

(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary
$).  $).  !#3 

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
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%

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

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 

Directors and others

-ISCELLANEOUS%XPENSES
4AXES,ICENSE&EES)NSURANCEETC 59.14 
5TILITIES 0OWER7ATERAND'AS 120.50 

Board of
2ENT 0.28 
3UBSIDIESFOR3OCIAL#ULTURAL!CTIVITIES 30.94 
"US(IRE#HARGES - 
#LUBAND2ECREATION -  
/THERS 9.92 

Directors’
Report
TOTAL 684.93 621.49

Discussion & Analysis

Management’s
Responsibility Report
Business
Report on Corporate
Governance
Financial financial
Statements
Standalone
statements
 280 Indian Oil Corporation Limited 2nd Integrated Annual Report

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

,!.$&2%%(/,$            108.40 

,!.$ ,%!3%(/,$           11.34 

"5),$).'32/!$3ETC        820.18 

0,!.4!.$%15)0-%.4        41.60 

/&&)#%%15)0-%.43        10.84 

&52.)452%&)8452%3        10.06 

$2!).!'% 3%7!'%           1.34 

7!4%23500,93934%-3

42!.30/24%15)0-%.4          0.10 

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

INDEPENDENT AUDITORS’ REPORT

To
The Members of Indian Oil Corporation Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
7EHAVEAUDITEDTHEACCOMPANYINGCONSOLIDATEDlNANCIALSTATEMENTSOF)NDIAN/IL#ORPORATION,IMITEDHEREINAFTERREFERREDTOAShTHE
(OLDING#OMPANYv ANDITS3UBSIDIARIESCOLLECTIVELYREFERREDTOAShTHE'ROUPv ITS*OINT6ENTURESAND!SSOCIATESWHICHCOMPRISEOF
THE#ONSOLIDATED"ALANCE3HEETASAT-ARCHTHE#ONSOLIDATED3TATEMENTOF0ROlTAND,OSSINCLUDING/THER#OMPREHENSIVE
)NCOMETHE#ONSOLIDATED3TATEMENTOF#HANGESIN%QUITYANDTHE#ONSOLIDATED3TATEMENTOF#ASH&LOWSFORTHEYEARENDEDONTHAT
DATEANDNOTESTOTHECONSOLIDATEDlNANCIALSTATEMENTINCLUDINGASUMMARYOFTHESIGNIlCANTACCOUNTINGPOLICIESANDOTHEREXPLANATORY
INFORMATIONHEREINAFTERREFERREDTOAShTHECONSOLIDATEDlNANCIALSTATEMENTSv 
)NOUROPINIONANDTOTHEBESTOFOURINFORMATIONANDACCORDINGTOTHEEXPLANATIONSGIVENTOUSTHEAFORESAIDCONSOLIDATEDlNANCIAL
STATEMENTSGIVETHEINFORMATIONREQUIREDBYTHE#OMPANIES!CTTHEh!CTv INTHEMANNERSOREQUIREDANDGIVEATRUEANDFAIR
VIEWINCONFORMITYWITHTHEACCOUNTINGPRINCIPLESGENERALLYACCEPTEDIN)NDIAOFTHECONSOLIDATEDSTATEOFAFFAIRSOFTHE'ROUPITS*OINT
6ENTURESAND!SSOCIATESASAT-ARCHOFCONSOLIDATEDPROlTTOTALCOMPREHENSIVEINCOMECONSOLIDATEDCHANGESINEQUITYAND
ITSCASHmOWSFORTHEYEARENDEDONTHATDATE
Basis for Opinion
We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (SAs) specified under
7ECONDUCTEDOURAUDITOFTHECONSOLIDATEDlNANCIALSTATEMENTSINACCORDANCEWITHTHE3TANDARDSON!UDITING3!S SPECIlEDUNDER
section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditors’ Responsibilities for
SECTION OFTHE!CT3!S /URRESPONSIBILITIESUNDERTHOSE3TANDARDSAREFURTHERDESCRIBEDINTHEAuditors’
the Audit of the Consolidated financial statements section of our report. We are independent of the Group in accordance with the Code
THE!UDITOFTHE#ONSOLIDATEDlNANCIALSTATEMENTSSECTIONOFOURREPORT7EAREINDEPENDENTOFTHE'ROUPINACCORDANCEWITHTHE#ODE
of Ethics issued by the Institute of Chartered Accountants of India (ICAI), together with the ethical requirements that are relevant to our
OF%THICSISSUEDBYTHE)NSTITUTEOF#HARTERED!CCOUNTANTSOF)NDIA)#!) TOGETHERWITHTHEETHICALREQUIREMENTSTHATARERELEVANTTOOUR
audit of the consolidated financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our
AUDITOFTHECONSOLIDATEDlNANCIALSTATEMENTSUNDERTHEPROVISIONSOFTHE!CTANDTHE2ULESMADETHEREUNDERANDWEHAVEFULlLLEDOUR
other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we
OTHERETHICALRESPONSIBILITIESINACCORDANCEWITHTHESEREQUIREMENTSANDTHE)#!)S#ODEOF%THICS7EBELIEVETHATTHEAUDITEVIDENCEWE
have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.
HAVEOBTAINEDISSUFlCIENTANDAPPROPRIATETOPROVIDEABASISFOROURAUDITOPINIONONTHECONSOLIDATEDlNANCIALSTATEMENTS
Key Audit Matters
+EYAUDITMATTERSARETHOSEMATTERSTHATINOURPROFESSIONALJUDGMENTWEREOFMOSTSIGNIlCANCEINOURAUDITOFTHECONSOLIDATEDlNANCIAL
STATEMENTSOFTHECURRENTPERIOD4HESEMATTERSWEREADDRESSEDINTHECONTEXTOFOURAUDITOFTHECONSOLIDATEDlNANCIALSTATEMENTSASA
WHOLEANDINFORMINGOUROPINIONTHEREONANDWEDONOTPROVIDEASEPARATEOPINIONONTHESEMATTERS7EHAVEDETERMINEDTHEMATTERS
DESCRIBEDBELOWTOBETHEKEYAUDITMATTERSTOBECOMMUNICATEDINOURREPORT

Key Audit Matters Auditors’ response to Key Audit Matters

Property, Plant & Equipment and Intangible Assets
4HERE ARE AREAS WHERE MANAGEMENT JUDGEMENT IMPACTS THE 7E ASSESSED THE CONTROLS IN PLACE OVER THE lXED ASSET CYCLE
CARRYING VALUE OF PROPERTY PLANT AND EQUIPMENT INTANGIBLE EVALUATED THE APPROPRIATENESS OF CAPITALISATION PROCESS
ASSETS AND THEIR RESPECTIVE DEPRECIATION RATES 4HESE INCLUDE
THEDECISIONTOCAPITALISEOREXPENSECOSTSTHEANNUALASSETLIFE
RECOGNITIONCRITERIAFOR
REVIEWTHETIMELINESSOFTHECAPITALISATIONOFASSETSANDTHEUSE
OFMANAGEMENTASSUMPTIONSANDESTIMATESFORTHEDETERMINATION
PERFORMEDTESTSOFDETAILSONCOSTSCAPITALISEDTHETIMELINESSOF
THECAPITALISATIONOFTHEASSETSANDTHEDE
ASSETSRETIREDFROMACTIVEUSE
)N PERFORMING THESE PROCEDURES WE REVIEWED THE JUDGEMENTS
OR THE MEASUREMENT AND RECOGNITION CRITERIA FOR ASSETS RETIRED
MADE BY MANAGEMENT INCLUDING THE NATURE OF UNDERLYING COSTS
FROM ACTIVE USE $UE TO THE MATERIALITY IN THE CONTEXT OF THE
CAPITALISEDDETERMINATIONOFREALIZABLEVALUEOFTHEASSETSRETIRED
"ALANCE3HEETOFTHE#OMPANYANDTHELEVELOFJUDGEMENTAND
FROMACTIVEUSETHEAPPROPRIATENESSOFASSETLIVESAPPLIEDINTHE
ESTIMATESREQUIREDWECONSIDERTHISTOBEASAREAOFSIGNIlCANCE
CALCULATIONOFDEPRECIATIONTHEUSEFULLIVESOFASSETSPRESCRIBED
IN3CHEDULE))OFTHE#OMPANIES!CTANDTHEUSEFULLIVESOF
CERTAINASSETSASPERTHETECHNICALASSESSMENTBYTHEMANAGEMENT
7EHAVEOBSERVEDTHATTHEMANAGEMENTHASREGULARLYREVIEWEDTHE
AFORESAIDJUDGEMENTSANDTHEREARENOMATERIALCHANGES
 60th Annual Report 2018-19 283

About the
Report
Key Audit Matters Auditors’ response to Key Audit Matters
Capital Work-in-Progress

Chairman’s Desk
4HE#OMPANYISINTHEPROCESSOFEXECUTINGVARIOUSPROJECTSLIKE 7EPERFORMEDANUNDERSTANDINGANDEVALUATIONOFTHESYSTEMOF
EXPANSIONOFRElNERIESINSTALLATIONOFNEWPLANTSDEPOTS,0' INTERNALCONTROLOVERTHECAPITALWORKINPROGRESSWITHREFERENCETO
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#OMPANYTHISISCONSIDEREDTOBEANAREAWHICHHADTHE
ITSSTATEOFINTENDEDUSE
SIGNIlCANTEFFECTONTHEOVERALLAUDITSTRATEGYANDALLOCATIONOF

resources in planning and completing our audit
Provision for Direct Taxes
4HE#OMPANYHASUNCERTAINDIRECTTAXPOSITIONSINCLUDINGMATTERS
UNDERDISPUTEWHICHINVOLVESSIGNIlCANTJUDGMENTRELATINGTOTHE
POSSIBLEOUTCOMEOFTHESEDISPUTESINESTIMATIONOFTHEPROVISION
About IndianOil
/UR AUDIT PROCESS INVOLVED ASSESSMENT OF THE MANAGEMENTS
UNDERLYING ASSUMPTIONS IN ESTIMATING THE TAX PROVISION AS
CONlRMED BY THE #OMPANYS TAX CONSULTANTS  AND THE POSSIBLE
FORINCOMETAX"ECAUSEOFTHEJUDGEMENTREQUIREDTHEAREAISA 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

Directors and others

DISALLOWANCESASPERTHEPROVISIONSOFTHE)NCOME4AX!CT
Provisions and Contingent Liabilities

Board of
4HE #OMPANY IS INVOLVED IN VARIOUS TAXES AND OTHER DISPUTES
FOR WHICH lNAL OUTCOMES CANNOT BE EASILY PREDICTED AND
WHICH COULD POTENTIALLY RESULT IN SIGNIlCANT LIABILITIES  4HE
ASSESSMENTOFTHERISKSASSOCIATEDWITHTHELITIGATIONSISBASED
/URAUDITPROCEDUREINRESPONSETOTHISKEY!UDIT-ATTERINCLUDED
AMONGOTHERS
• !SSESSMENTOFTHEPROCESSANDRELEVANTCONTROLSIMPLEMENTED
TOIDENTIFYLEGALANDTAXLITIGATIONSANDPENDINGADMINISTRATIVE
ONCOMPLEXASSUMPTIONSWHICH 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

Discussion & Analysis

THE MATERIALITY OF SUCH LITIGATIONS AND THE COMPLEXITY OF THE RULINGSINSIMILARCASES
ASSESSMENTPROCESSTHEAREAISAKEYMATTERFOROURAUDIT

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*ULY4HE'OODSAND3ERVICE4AXISAPPLICABLEONLY ONTHEINTERPRETATIONSINVOLVEDTAKINGINTOACCOUNTTHEADVICESAND
Report on Corporate
IN CASEOF CERTAINPRODUCTSANDSERVICESOFTHE#OMPANYWHILE OPINIONSRECEIVEDFROMINDIRECTTAXEXPERTS
MAJORPRODUCTSARESTILLCOVEREDUNDERTHEOLDREGIMEVIZEXCISE
DUTYCUSTOMSDUTYANDVALUEADDEDTAX3INCETHE#OMPANYIS
Governance

COVEREDUNDERBOTHTHEREGIMESTHEMANAGEMENTISREQUIREDTO
APPLY JUDGMENT IN THE INTERPRETATION WITH RESPECT TO INPUT TAX
CREDITAVAILABLEANDTAXABILITYOFTHEPRODUCTSANDSERVICES3INCE
financial

SIGNIlCANTJUDGMENTOFTHEMANAGEMENTISREQUIREDTHEAREAIS
AKEYAUDITMATTERFOROURAUDIT
Consolidated
Statements
statements
Financial
 284 Indian Oil Corporation Limited 2nd Integrated Annual Report

Key Audit Matters Auditors’ response to Key Audit Matters

Upstream Assets –Useful life, Impairment and Obligations
4HE !UDITORS OF ONE OF THE 'ROUP #OMPANIES HAVE REPORTED 4HE !UDITORS OF THE SAID 'ROUP #OMPANY HAVE STATED THAT THEY
THAT SIGNIlCANT ACCOUNTING ESTIMATES BASED ON MANAGEMENTS EVALUATED THE KEY FACTORS AND ASSUMPTIONS USED TO DEVELOP THE
KNOWLEDGE AND EXPERIENCE ABOUT PAST AND CURRENT EVENTS AND ACCOUNTINGESTIMATESINDETERMININGTHATTHEYWEREREASONABLEIN
ASSUMPTIONS ABOUT FUTURE EVENTS IN RELATION TO THE VALUATION RELATIONTOTHElNANCIALSTATEMENTSTAKENASAWHOLEANDTHEYALSO
USEFUL LIFE SALVAGE VALUE DEPRECIATION DEPLETION AND have reliance on the reserve study prepared by an independent
AMORTISATIONIMPAIRMENTTESTINGANDPROVISIONFOROBLIGATIONSON PETROLEUMENGINEERINGCONSULTINGlRM
DECOMMISSIONING LIABILITIES OF UPSTREAM ASSETS REmECTED IN THE
CONSOLIDATEDlNANCIALSTATEMENTSARESENSITIVEBECAUSEOFTHEIR
SIGNIlCANCEANDTHEPOSSIBILITYTHATFUTUREEVENTSAFFECTINGTHEM
MAYDIFFERSIGNIlCANTLYFROMTHOSEEXPECTED(ENCETHEAREAIS
AKEYAUDITMATTERFOROURAUDIT
Receivables from Airlines Customers
4HE #OMPANY HAS TRADE RECEIVABLES FROM CERTAIN AIRLINES /URAUDITPROCEDURESINCLUDED
4HE INCREASING CHALLENGES OVER THE ECONOMY AND OPERATING
• 4ESTING THE MANAGEMENTS JUDGMENT WITH RESPECT TO
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
ACCORDANCEWITHTHECONTRACTSOFSALE airline customers indicating that there are no material
DISCREPANCIESORDISPUTES
4HE MANAGEMENT HAS DETERMINED AND ASSESSED THAT THESE
AMOUNTS ARE GOOD OF RECOVERY CONSIDERING THE DUES RECEIVABLE • PERUSINGTHElNANCIALBANKGUARANTEESRECEIVEDFROMPRIVATE
FROMAGOVERNMENTAIRLINECOMPANYANDlNANCIALBANKGUARANTEES AIRLINESCOVERINGTHEAMOUNTDUEFROMTHEM
RECEIVEDFROMPRIVATEAIRLINESCOVERINGTHEAMOUNTDUEFROMTHE
PRIVATEAIRLINECOMPANIES 7EAREALSOINFORMEDTHATTHE#OMPANYHASINVOKEDBANKGUARANTEE
OBTAINEDFROMONEPRIVATEAIRLINEANDREALISEDTHEMONEYAGAINST
#ONSIDERINGTHEMATERIALITYOFTHEAMOUNTINVOLVEDWECONSIDERED THEDUESSUBSEQUENTTOTHE"ALANCE3HEETDATE
THISASAKEYAUDITMATTERFOROURAUDIT

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.
4HEOTHERINFORMATIONTOTHEEXTENTNOTMADEAVAILABLETOUSASOFTHEDATEOFSIGNINGTHISREPORTSEXPECTEDTOBEMADEAVAILABLETOUS
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.
)NCONNECTIONWITHOURAUDITOFTHECONSOLIDATEDlNANCIALSTATEMENTSOURRESPONSIBILITYISTOREADTHEOTHERINFORMATIONANDIDENTIlED
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and identified
ABOVEWHENITBECOMESAVAILABLEANDINDOINGSOCONSIDERWHETHERTHEOTHERINFORMATIONISMATERIALLYINCONSISTENTWITHTHECONSOLIDATED
above when it becomes available, and in doing so, consider whether the other information is materially inconsistent with the consolidated
lNANCIALSTATEMENTSOROURKNOWLEDGEOBTAINEDINTHEAUDITOROTHERWISEAPPEARSTOBEMATERIALLYMISSTATED
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
)FBASEDONTHEWORKWEHAVEPERFORMEDONTHEOTHERINFORMATIONTHATWEOBTAINEDPRIORTOTHEDATEOFAUDITORSREPORTWECONCLUDETHAT
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
THEREISAMATERIALMISSTATEMENTOFTHISINFORMATIONWEAREREQUIREDTOREPORTTHATFACT7EHAVENOTHINGTOREPORTINTHISREGARD
there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
7HENWEREADTHEOTHERINFORMATIONIFWECONCLUDETHATTHEREISMATERIALMISSTATEMENTTHEREINWEAREREQUIREDTOCOMMUNICATETHE
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
PERFORMANCETOTALCOMPREHENSIVEINCOMECONSOLIDATED3TATEMENTOF#HANGESIN%QUITYANDCONSOLIDATED3TATEMENTOF#ASH&LOWSOF
THE'ROUPITS*OINT6ENTURESAND!SSOCIATESINACCORDANCEWITHTHEACCOUNTINGPRINCIPLESGENERALLYACCEPTEDIN)NDIAINCLUDINGTHE

From the
!CCOUNTING3TANDARDSSPECIlEDUNDERSECTIONOFTHEACT4HERESPECTIVE"OARDOF$IRECTORSOFTHECOMPANIESINCLUDEDINTHE'ROUP
OFITS*OINT6ENTURESAND!SSOCIATESARERESPONSIBLEFORMAINTENANCEOFADEQUATEACCOUNTINGRECORDSINACCORDANCEWITHTHEPROVISIONS
OFTHE!CTFORSAFEGUARDINGTHEASSETSOFTHE'ROUPFORPREVENTINGANDDETECTINGFRAUDSANDOTHERIRREGULARITIESSELECTIONANDAPPLICATION
OFAPPROPRIATEACCOUNTINGPOLICIESMAKINGJUDGMENTSANDESTIMATESTHATAREREASONABLEANDPRUDENTANDTHEDESIGNIMPLEMENTATION
ANDMAINTENANCEOFADEQUATEINTERNALlNANCIALCONTROLSTHATWEREOPERATINGEFFECTIVELYFORENSURINGACCURACYANDCOMPLETENESSOFTHE

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ACCOUNTINGRECORDSRELEVANTTOTHEPREPARATIONANDPRESENTATIONOFTHElNANCIALSTATEMENTSTHATGIVEATRUEANDFAIRVIEWANDAREFREEFROM
MATERIALMISSTATEMENTWHETHERDUETOFRAUDORERRORWHICHHAVEBEENUSEDFORTHEPURPOSEOFPREPARATIONOFTHECONSOLIDATEDlNANCIAL
STATEMENTSBYTHE$IRECTORSOFTHE(OLDING#OMPANYASAFORESAID
)NPREPARINGTHECONSOLIDATEDlNANCIALSTATEMENTSTHERESPECTIVE"OARDOF$IRECTORSOFTHECOMPANIESINCLUDEDINTHE'ROUPITS*OINT
6ENTURESAND!SSOCIATESARERESPONSIBLEFORASSESSINGTHEABILITYOFTHE'ROUPITS*OINT6ENTURESAND!SSOCIATESTOCONTINUEASAGOING
CONCERNDISCLOSINGASAPPLICABLEMATTERSRELATEDTOGOINGCONCERNANDUSINGTHEGOINGCONCERNBASISOFACCOUNTINGUNLESSMANAGEMENT

Description of
EITHERINTENDSTOLIQUIDATETHE'ROUPORTOCEASEOPERATIONSORHASNOREALISTICALTERNATIVEBUTTODOSO

Capitals
4HE RESPECTIVE "OARD OF $IRECTORS OF THE COMPANIES INCLUDED IN THE 'ROUP ITS *OINT 6ENTURES AND !SSOCIATES ARE  RESPONSIBLE FOR
OVERSEEINGTHElNANCIALREPORTINGPROCESSOFTHE'ROUPITS*OINT6ENTURESAND!SSOCIATES
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Directors and others

/UROBJECTIVESARETOOBTAINREASONABLEASSURANCEABOUTWHETHERTHECONSOLIDATEDlNANCIALSTATEMENTSASAWHOLEAREFREEFROMMATERIAL
MISSTATEMENTWHETHERDUETOFRAUDORERRORANDTOISSUEANAUDITORSREPORTTHATINCLUDESOUROPINION2EASONABLEASSURANCEISAHIGH

Board of
LEVELOFASSURANCEBUTISNOTAGUARANTEETHATANAUDITCONDUCTEDINACCORDANCEWITH3!SWILLALWAYSDETECTAMATERIALMISSTATEMENT
WHENITEXISTS-ISSTATEMENTSCANARISEFROMFRAUDORERRORANDARECONSIDEREDMATERIALIFINDIVIDUALLYORINTHEAGGREGATETHEYCOULD
REASONABLYBEEXPECTEDTOINmUENCETHEECONOMICDECISIONSOFUSERSTAKENONTHEBASISOFTHESECONSOLIDATEDlNANCIALSTATEMENTS
!SPARTOFANAUDITINACCORDANCEWITH3!SWEEXERCISEPROFESSIONALJUDGMENTANDMAINTAINPROFESSIONALSKEPTICISMTHROUGHOUTTHEAUDIT
7EALSO

Directors’
• )DENTIFYANDASSESSTHERISKSOFMATERIALMISSTATEMENTOFTHECONSOLIDATEDlNANCIALSTATEMENTSWHETHERDUETOFRAUDORERRORDESIGN

Report
ANDPERFORMAUDITPROCEDURESRESPONSIVETOTHOSERISKSANDOBTAINAUDITEVIDENCETHATISSUFlCIENTANDAPPROPRIATETOPROVIDEABASIS
FOROUROPINION4HERISKOFNOTDETECTINGAMATERIALMISSTATEMENTRESULTINGFROMFRAUDISHIGHERTHANFORONERESULTINGFROMERRORAS

Discussion & Analysis

FRAUDMAYINVOLVECOLLUSIONFORGERYINTENTIONALOMISSIONSMISREPRESENTATIONSORTHEOVERRIDEOFINTERNALCONTROL

Management’s
• /BTAINANUNDERSTANDINGOFINTERNALlNANCIALCONTROLSRELEVANTTOTHEAUDITINORDERTODESIGNAUDITPROCEDURESTHATAREAPPROPRIATEIN
THECIRCUMSTANCES5NDERSECTION I OFTHE!CTWEAREALSORESPONSIBLEFOREXPRESSINGOUROPINIONONWHETHERTHE'ROUPITS
*OINT6ENTURESAND!SSOCIATESWHICHARECOMPANIESINCORPORATEDIN)NDIAHASADEQUATEINTERNALlNANCIALCONTROLSSYSTEMINPLACE
ANDTHEOPERATINGEFFECTIVENESSOFSUCHCONTROLS
• %VALUATETHEAPPROPRIATENESSOFACCOUNTINGPOLICIESUSEDANDTHEREASONABLENESSOFACCOUNTINGESTIMATESANDRELATEDDISCLOSURES

Responsibility Report
MADEBYMANAGEMENT
• #ONCLUDEONTHEAPPROPRIATENESSOFMANAGEMENTSUSEOFTHEGOINGCONCERNBASISOFACCOUNTINGANDBASEDONTHEAUDITEVIDENCE

Business
OBTAINED WHETHER A MATERIAL UNCERTAINTY EXISTS RELATED TO EVENTS OR CONDITIONS THAT MAY CAST SIGNIlCANT DOUBT ON THE ABILITY OF
THE'ROUPITS*OINT6ENTURESAND!SSOCIATESTOCONTINUEASAGOINGCONCERN)FWECONCLUDETHATAMATERIALUNCERTAINTYEXISTSWE
AREREQUIREDTODRAWATTENTIONINOURAUDITORSREPORTTOTHERELATEDDISCLOSURESINTHECONSOLIDATEDlNANCIALSTATEMENTSORIFSUCH
DISCLOSURESAREINADEQUATETOMODIFYOUROPINION/URCONCLUSIONSAREBASEDONTHEAUDITEVIDENCEOBTAINEDUPTOTHEDATEOFOUR
Report on Corporate

AUDITORSREPORT(OWEVERFUTUREEVENTSORCONDITIONSMAYCAUSETHE'ROUPITS*OINT6ENTURESAND!SSOCIATESCONTROLLEDENTITIESTO

CEASETOCONTINUEASAGOINGCONCERN
Governance

• %VALUATETHEOVERALLPRESENTATIONSTRUCTUREANDCONTENT OFTHECONSOLIDATEDlNANCIAL STATEMENTSINCLUDING THE DISCLOSURES AND

WHETHER THE CONSOLIDATED lNANCIAL STATEMENTS REPRESENT THE UNDERLYING TRANSACTIONS AND EVENTS IN A MANNER THAT ACHIEVES FAIR
PRESENTATION
financial

• /BTAIN SUFlCIENT APPROPRIATE AUDIT EVIDENCE REGARDING THE lNANCIAL INFORMATION OF THE ENTITIES OR BUSINESS ACTIVITIES WITHIN THE
'ROUPITS*OINT6ENTURESAND!SSOCIATESTOEXPRESSANOPINIONONTHECONSOLIDATEDlNANCIALSTATEMENTS7EARERESPONSIBLEFORTHE
Consolidated
Statements
statements

DIRECTIONSUPERVISIONANDPERFORMANCEOFTHEAUDITOFTHElNANCIALSTATEMENTSOFSUCHENTITIESINCLUDEDINTHECONSOLIDATEDlNANCIAL
Financial

STATEMENTSOFWHICHWEARETHEINDEPENDENTAUDITORS&ORTHEOTHERENTITIESINCLUDEDINTHECONSOLIDATEDlNANCIALSTATEMENTSWHICH
 286 Indian Oil Corporation Limited 2nd Integrated Annual Report

HAVEBEENAUDITEDBYOTHERAUDITORSSUCHOTHERAUDITORSREMAINRESPONSIBLEFORTHEDIRECTIONSUPERVISIONANDPERFORMANCEOFTHE

AUDITSCARRIEDOUTBYTHEM7EREMAINSOLELYRESPONSIBLEFOROURAUDITOPINION
 7ECOMMUNICATEWITHTHOSECHARGEDWITHGOVERNANCEOFTHE(OLDING#OMPANYANDSUCHOTHERENTITIESINCLUDEDINTHECONSOLIDATED
lNANCIALSTATEMENTSOFWHICHWEARETHEINDEPENDENTAUDITORSREGARDINGAMONGOTHERMATTERSTHEPLANNEDSCOPEANDTIMINGOFTHE
AUDITANDSIGNIlCANTAUDITlNDINGSINCLUDINGANYSIGNIlCANTDElCIENCIESININTERNALCONTROLTHATWEIDENTIFYDURINGOURAUDIT
 7EALSOPROVIDETHOSECHARGEDWITHGOVERNANCEWITHASTATEMENTTHATWEHAVECOMPLIEDWITHRELEVANTETHICALREQUIREMENTSREGARDING
INDEPENDENCEANDTOCOMMUNICATEWITHTHEMALLRELATIONSHIPSANDOTHERMATTERSTHATMAYREASONABLYBETHOUGHTTOBEARONOUR
INDEPENDENCEANDWHEREAPPLICABLERELATEDSAFEGUARDS
 &ROMTHEMATTERSCOMMUNICATEDWITHTHOSECHARGEDWITHGOVERNANCEWEDETERMINETHOSEMATTERSTHATWEREOFMOSTSIGNIlCANCEIN
THEAUDITOFTHECONSOLIDATEDlNANCIALSTATEMENTSOFTHECURRENTPERIODANDARETHEREFORETHEKEYAUDITMATTERS7EDESCRIBETHESE
MATTERSINOUR!UDITORS2EPORTUNLESSLAWORREGULATIONPRECLUDESPUBLICDISCLOSUREABOUTTHEMATTERORWHENINEXTREMELYRARE
CIRCUMSTANCESWEDETERMINETHATAMATTERSHOULDNOTBECOMMUNICATEDINOURREPORTBECAUSETHEADVERSECONSEQUENCESOFDOING
SOWOULDREASONABLYBEEXPECTEDTOOUTWEIGHTHEPUBLICINTERESTBENElTSOFSUCHCOMMUNICATION
Other Matters
7E DID NOT AUDIT THE lNANCIAL STATEMENTSlNANCIAL INFORMATION OF  SUBSIDIARIES INCLUDED IN THE CONSOLIDATED lNANCIAL STATEMENTS
WHOSElNANCIALSTATEMENTSREmECTTOTALASSETSOF`CROREANDNETASSETSOF`CROREASAT-ARCHTOTAL
REVENUESOF`CROREANDNETCASHOUTmOWSINmOWS AMOUNTINGTO`CROREFORTHEYEARENDEDONTHATDATEASCONSIDERED
INTHECONSOLIDATEDlNANCIALSTATEMENTS4HECONSOLIDATEDlNANCIALSTATEMENTSALSOINCLUDETHE'ROUPSSHAREOFNETPROlTOF`
CROREAND/THER#OMPREHENSIVE)NCOMEOF`CROREFORTHEYEARENDED-ARCHASCONSIDEREDINTHECONSOLIDATEDlNANCIAL
STATEMENTSINRESPECTOFJOINTVENTURESANDASSOCIATESWHOSElNANCIALSTATEMENTSlNANCIALINFORMATIONHAVENOTBEENAUDITEDBYUS
4HESElNANCIALSTATEMENTSHAVEBEENAUDITEDBYOTHERAUDITORSWHOSEREPORTSHAVEBEENFURNISHEDTOUSBYTHE(OLDING#OMPANYS
-ANAGEMENTANDOUROPINIONONTHECONSOLIDATEDlNANCIALSTATEMENTSINSOFARASITRELATESTOTHEAMOUNTSANDDISCLOSURESINCLUDEDIN
RESPECTOFTHESESUBSIDIARIESJOINTVENTURESANDASSOCIATESANDOURREPORTINTERMSOFSUB SECTION OF3ECTIONOFTHE!CTINSOFAR
ASITRELATESTOTHEAFORESAIDSUBSIDIARIESJOINTVENTURESANDASSOCIATESISBASEDSOLELYONTHEREPORTSOFTHEOTHERAUDITORS
#ERTAINOFTHESESUBSIDIARIESANDJOINTVENTURESARELOCATEDOUTSIDE)NDIAWHOSElNANCIALSTATEMENTSANDOTHERlNANCIALINFORMATIONHAVE
BEENPREPAREDINACCORDANCEWITHACCOUNTINGPRINCIPLESGENERALLYACCEPTEDINTHEIRRESPECTIVECOUNTRIESANDWHICHHAVEBEENAUDITED
BYOTHERAUDITORSUNDERGENERALLYACCEPTEDAUDITINGSTANDARDSAPPLICABLEINTHEIRRESPECTIVECOUNTRIES4HE#OMPANYSMANAGEMENTHAS
CONVERTED THE lNANCIAL STATEMENTS OF SUCH SUBSIDIARIES AND JOINT VENTURES AND ASSOCIATES LOCATED OUTSIDE )NDIA FROM THE ACCOUNTING
PRINCIPLESGENERALLYACCEPTEDINTHEIRRESPECTIVECOUNTRIESTOACCOUNTINGPRINCIPLESGENERALLYACCEPTEDIN)NDIA4HESECONVERTEDlNANCIAL
STATEMENTSHAVEBEENCERTIlEDBY#HARTERED!CCOUNTANTSIN)NDIAAPPOINTEDBYTHE#OMPANYFORTHESPECIlCPURPOSEANDHAVEBEEN
RELIEDUPONBYUS/UROPINIONINSOFARASITRELATESTOTHEBALANCESANDAFFAIRSOFSUCHSUBSIDIARIESANDJOINTVENTURESANDASSOCIATES
LOCATEDOUTSIDE)NDIAISBASEDONTHEREPORTSOFOTHERAUDITORSASMENTIONEDABOVE
/UROPINIONONTHECONSOLIDATEDlNANCIALSTATEMENTSANDOURREPORTON/THER,EGALAND2EGULATORY2EQUIREMENTSBELOWISNOTMODIlED
INRESPECTOFTHEABOVEMATTERSWITHRESPECTTOOURRELIANCEONTHEWORKDONEANDTHEREPORTSOFTHEOTHERAUDITORS
Report on Other Legal and Regulatory Requirements
 !SREQUIREDBY3ECTION OFTHE!CTBASEDONOURAUDITWEREPORTTHAT
A  7EHAVESOUGHTANDOBTAINEDALLTHEINFORMATIONANDEXPLANATIONSWHICHTOTHEBESTOFOURKNOWLEDGEANDBELIEFWERENECESSARY
FORTHEPURPOSESOFOURAUDITOFTHEAFORESAIDCONSOLIDATEDlNANCIALSTATEMENTS
B  )N OUR OPINION PROPER BOOKS OF ACCOUNT AS REQUIRED BY LAW RELATING TO PREPARATION OF THE AFORESAID CONSOLIDATED lNANCIAL
STATEMENTSHAVEBEENKEPTSOFARASITAPPEARSFROMOUREXAMINATIONOFTHOSEBOOKSANDTHEREPORTSOFTHEOTHERAUDITORS
C  4HE #ONSOLIDATED "ALANCE 3HEET THE #ONSOLIDATED 3TATEMENT OF 0ROlT AND ,OSS INCLUDING /THER #OMPREHENSIVE )NCOME 
#ONSOLIDATED 3TATEMENT OF #HANGES IN %QUITY AND THE #ONSOLIDATED 3TATEMENT OF #ASH &LOWS DEALT WITH BY THIS 2EPORT ARE
IN AGREEMENT WITH THE RELEVANT BOOKS OF ACCOUNT MAINTAINED FOR THE PURPOSE OF PREPARATION OF THE CONSOLIDATED lNANCIAL
STATEMENTS
D  )NOUROPINIONTHEAFORESAIDCONSOLIDATEDlNANCIALSTATEMENTSCOMPLYWITHTHE)NDIAN!CCOUNTING3TANDARDSSPECIlEDUNDER
3ECTIONOFTHE!CT
 60th Annual Report 2018-19 287

About the
Report
E  /NTHEBASISOFTHEREPORTSOFTHESTATUTORYAUDITORSOFSUBSIDIARIESANDJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIANONE
OFTHEDIRECTORSOFJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIAISDISQUALIlEDASON-ARCHFROMBEINGAPPOINTED
ASADIRECTORINTERMSOF3ECTION OFTHE!CT7EAREINFORMEDTHATTHEPROVISIONSOF3ECTION OFTHE!CTARENOT
APPLICABLETOTHE(OLDING#OMPANYANDITSSUBSIDIARYCOMPANIESINCORPORATEDIN)NDIABEING'OVERNMENTCOMPANIESINTERMS

Chairman’s Desk
OFNOTIlCATIONNO'32% DATED*UNEISSUEDBY-INISTRYOF#ORPORATE!FFAIRS

From the
F  7ITHRESPECTTOTHEADEQUACYOFTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGOFTHE(OLDING#OMPANYITSSUBSIDIARY
COMPANIESJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIAANDTHEOPERATINGEFFECTIVENESSOFSUCHCONTROLSREFERTOOUR
SEPARATEREPORTINh!NNEXUREv
G  7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITHTHEREQUIREMENTSOFSECTION 

About IndianOil
OFTHE!CTASAMENDED
 7EAREINFORMEDTHATTHEPROVISIONSOFSECTIONREADWITH3CHEDULE6OFTHE!CTRELATINGTOMANAGERIALREMUNERATIONARENOT
APPLICABLETOTHE(OLDING#OMPANYANDITSSUBSIDIARIESINCORPORATEDIN)NDIABEING'OVERNMENT#OMPANIESINTERMSOF-INISTRY
OF#ORPORATE!FFAIRS.OTIlCATIONNO'32% DATED*UNE/NTHEBASISOFTHEREPORTSOFTHESTATUTORYAUDITORS
OFTHE*OINT6ENTURESAND!SSOCIATESINCORPORATEDIN)NDIATHEREMUNERATIONPAIDBYTHE*OINT6ENTURESAND!SSOCIATESTOITS
DIRECTORSDURINGTHECURRENTYEARISINACCORDANCEWITHTHE3ECTIONOFTHE!CTANDTHEREMUNERATIONPAIDTOANYDIRECTORIS

Description of
NOTINEXCESSOFTHELIMITLAIDDOWNUNDER3ECTIONOFTHE!CT

Capitals
H  7ITHRESPECTTOTHEOTHERMATTERSTOBEINCLUDEDINTHE!UDITORS2EPORTINACCORDANCEWITH2ULEOFTHE#OMPANIES!UDIT
AND!UDITORS 2ULESINOUROPINIONANDTOTHEBESTOFOURINFORMATIONANDACCORDINGTOTHEEXPLANATIONSGIVENTOUSAND
BASEDONTHECONSIDERATIONOFTHEREPORTOFTHEOTHERAUDITORSONTHElNANCIALSTATEMENTSOFTHESUBSIDIARYCOMPANIESJOINT
VENTURESANDASSOCIATESASNOTEDINOTHERMATTERPARAGRAPH

Directors and others

I 4HECONSOLIDATEDlNANCIALSTATEMENTSDISCLOSEDTHEIMPACTOFPENDINGLITIGATIONSONTHECONSOLIDATEDlNANCIALPOSITIONOF
THE'ROUPITSJOINTVENTURESANDASSOCIATES2EFER.OTE"AND"TOTHECONSOLIDATEDlNANCIALSTATEMENTS 

Board of
II 0ROVISIONHASBEENMADEINTHECONSOLIDATEDlNANCIALSTATEMENTSASREQUIREDUNDERTHEAPPLICABLELAWOR)NDIAN!CCOUNTING
3TANDARDSFORMATERIALFORESEEABLELOSSESIFANYONLONGTERMCONTRACTSINCLUDINGDERIVATIVECONTRACTS2EFER.OTETO
THECONSOLIDATEDlNANCIALSTATEMENTS
III 4HEREHASBEENNODELAYINTRANSFERRINGAMOUNTSREQUIREDTOBETRANSFERREDTOTHE)NVESTOR%DUCATIONAND0ROTECTION&UND
BYTHE(OLDING#OMPANYITSSUBSIDIARYCOMPANIESJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIADURINGTHEYEAR

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

ANNEXURE 1 TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL

STATEMENTS OF EVEN DATE TO THE MEMBERS OF INDIAN OIL CORPORATION LIMITED FOR THE
YEAR ENDED MARCH 31, 2019
2EFERREDTOINPARAGRAPHF UNDER@2EPORTON/THER,EGALAND2EGULATORY2EQUIREMENTS 
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”)
)NCONJUNCTIONWITHOURAUDITOFTHECONSOLIDATEDlNANCIALSTATEMENTSOFTHE#OMPANYASOFANDFORTHEYEARENDED-ARCHWE
HAVEAUDITEDTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGOF)NDIAN/IL#ORPORATION,IMITEDHEREINAFTERREFERREDTOASh(OLDING
#OMPANYv ANDITSSUBSIDIARYCOMPANIESCOLLECTIVELYREFERREDTOAShTHE'ROUPv JOINTVENTURESANDASSOCIATESWHICHARECOMPANIES
INCORPORATEDIN)NDIAASOFTHATDATE
Management’s Responsibility for Internal Financial Controls
4HERESPECTIVE"OARDOF$IRECTORSOFTHE(OLDING#OMPANYITSSUBSIDIARYCOMPANIESJOINTVENTURESANDASSOCIATESWHICHARECOMPANIES
INCORPORATED IN )NDIA ARE RESPONSIBLE FOR ESTABLISHING AND MAINTAINING INTERNAL lNANCIAL CONTROLS BASED ON THE INTERNAL CONTROL OVER
lNANCIALREPORTINGCRITERIAESTABLISHEDBYTHERESPECTIVE#OMPANIESCONSIDERINGTHEESSENTIALCOMPONENTSOFINTERNALCONTROLSTATEDIN
THE'UIDANCE.OTEON!UDITOF)NTERNAL&INANCIAL#ONTROLS/VER&INANCIAL2EPORTINGISSUEDBYTHE)NSTITUTEOF#HARTERED!CCOUNTANTSOF
)NDIAhTHE)#!)v 4HESERESPONSIBILITIESINCLUDETHEDESIGNIMPLEMENTATIONANDMAINTENANCEOFADEQUATEINTERNALlNANCIALCONTROLS
THAT WERE OPERATING EFFECTIVELY FOR ENSURING THE ORDERLY AND EFlCIENT CONDUCT OF ITS BUSINESS INCLUDING ADHERENCE TO THE RESPECTIVE
COMPANYSPOLICIESTHESAFEGUARDINGOFITSASSETSTHEPREVENTIONANDDETECTIONOFFRAUDSANDERRORSTHEACCURACYANDCOMPLETENESSOF
THEACCOUNTINGRECORDSANDTHETIMELYPREPARATIONOFRELIABLElNANCIALINFORMATIONASREQUIREDUNDERTHE!CT
Auditors’ Responsibility
/URRESPONSIBILITYISTOEXPRESSANOPINIONONTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGOFTHE'ROUPITSJOINTVENTURESAND
ASSOCIATESWHICHARECOMPANIESINCORPORATEDIN)NDIABASEDONOURAUDIT7ECONDUCTEDOURAUDITINACCORDANCEWITHTHE'UIDANCE.OTE
ON!UDITOF)NTERNAL&INANCIAL#ONTROLS/VER&INANCIAL2EPORTINGTHEh'UIDANCE.OTEv ISSUEDBYTHE)NSTITUTEOF#HARTERED!CCOUNTANTS
OF)NDIAANDTHE3TANDARDSON!UDITINGPRESCRIBEDUNDER3ECTION OFTHE!CTTOTHEEXTENTAPPLICABLETOANAUDITOFINTERNAL
lNANCIALCONTROLSBOTHISSUEDBYTHE)#!)4HOSE3TANDARDSANDTHE'UIDANCE.OTEREQUIRETHATWECOMPLYWITHETHICALREQUIREMENTSAND
PLANANDPERFORMTHEAUDITTOOBTAINREASONABLEASSURANCEABOUTWHETHERADEQUATEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGWAS
ESTABLISHEDANDMAINTAINEDANDIFSUCHCONTROLSOPERATEDEFFECTIVELYINALLMATERIALRESPECTS
/UR AUDIT INVOLVES PERFORMING PROCEDURES TO OBTAIN AUDIT EVIDENCE ABOUT THE ADEQUACY OF THE INTERNAL lNANCIAL CONTROLS SYSTEM OVER
lNANCIALREPORTINGANDTHEIROPERATINGEFFECTIVENESS/URAUDITOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGINCLUDEDOBTAINING
ANUNDERSTANDINGOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGASSESSINGTHERISKTHATAMATERIALWEAKNESSEXISTSANDTESTING
ANDEVALUATINGTHEDESIGNANDOPERATINGEFFECTIVENESSOFINTERNALCONTROLBASEDONTHEASSESSEDRISK4HEPROCEDURESSELECTEDDEPEND
ONTHE!UDITORSJUDGEMENTINCLUDINGTHEASSESSMENTOFTHERISKSOFMATERIALMISSTATEMENTOFTHElNANCIALSTATEMENTSWHETHERDUETO
FRAUDORERROR
7EBELIEVETHATTHEAUDITEVIDENCEWEHAVEOBTAINEDANDAUDITEVIDENCEOBTAINEDBYOTHERAUDITORSINTERMOFTHEIRREPORTSISSUFlCIENT
ANDAPPROPRIATETOPROVIDEABASISFOROURAUDITOPINIONONTHEINTERNALlNANCIALCONTROLSSYSTEMOVERlNANCIALREPORTINGOFTHE'ROUPITS
JOINTVENTURESANDASSOCIATESWHICHARECOMPANIESINCORPORATEDIN)NDIA
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
RELIABILITYOFlNANCIALREPORTINGANDTHEPREPARATIONOFlNANCIALSTATEMENTSFOREXTERNALPURPOSESINACCORDANCEWITHGENERALLYACCEPTED
ACCOUNTING PRINCIPLES! COMPANYS INTERNAL lNANCIAL CONTROL OVER lNANCIAL REPORTING INCLUDES THOSE POLICIES AND PROCEDURES THAT  
PERTAINTOTHEMAINTENANCEOFRECORDSTHATINREASONABLEDETAILACCURATELYANDFAIRLYREmECTTHETRANSACTIONSANDDISPOSITIONSOFTHE
ASSETSOFTHECOMPANY PROVIDEREASONABLEASSURANCETHATTRANSACTIONSARERECORDEDASNECESSARYTOPERMITPREPARATIONOFlNANCIAL
STATEMENTSINACCORDANCEWITHGENERALLYACCEPTEDACCOUNTINGPRINCIPLESANDTHATRECEIPTSANDEXPENDITURESOFTHECOMPANYAREBEING
 60th Annual Report 2018-19 289

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
"ECAUSEOFTHEINHERENTLIMITATIONSOFINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGINCLUDINGTHEPOSSIBILITYOFCOLLUSIONORIMPROPER

From the
MANAGEMENTOVERRIDEOFCONTROLSMATERIALMISSTATEMENTSDUETOERRORORFRAUDMAYOCCURANDNOTBEDETECTED!LSOPROJECTIONSOFANY
EVALUATIONOFTHEINTERNALlNANCIALCONTROLSOVERlNANCIALREPORTINGTOFUTUREPERIODSARESUBJECTTOTHERISKTHATTHEINTERNALlNANCIAL
CONTROLOVERlNANCIALREPORTINGMAYBECOMEINADEQUATEBECAUSEOFCHANGESINCONDITIONSORTHATTHEDEGREEOFCOMPLIANCEWITHTHE
POLICIESORPROCEDURESMAYDETERIORATE

About IndianOil
Opinion
)NOUROPINIONTHE(OLDING#OMPANYITSSUBSIDIARYCOMPANIESJOINTVENTURESANDASSOCIATESWHICHAREINCORPORATEDIN)NDIAHAVEIN
ALLMATERIALRESPECTSANADEQUATEINTERNALlNANCIALCONTROLSSYSTEMOVERlNANCIALREPORTINGANDSUCHINTERNALlNANCIALCONTROLSOVER
lNANCIALREPORTINGWEREOPERATINGEFFECTIVELYASAT-ARCHEXCEPTINTHECASEOFONEJOINTVENTUREWHERETHEAUDITORHASQUALIlED
HISOPINIONONCERTAINMATTERSWHICHWEAREINFORMEDWILLNOTHAVEMATERIALIMPACTONTHEADEQUACYANDOPERATINGEFFECTIVENESSOF
INTERNALlNANCIALCONTROLOVERlNANCIALREPORTINGOFTHE'ROUPBASEDONTHEINTERNALCONTROLOVERlNANCIALREPORTINGCRITERIAESTABLISHED

Description of
BYTHE'ROUPCONSIDERINGTHEESSENTIALCOMPONENTSOFINTERNALCONTROLSTATEDINTHE'UIDANCE.OTEON!UDITOF)NTERNAL&INANCIAL#ONTROLS

Capitals
/VER&INANCIAL2EPORTINGISSUEDBYTHE)NSTITUTEOF#HARTERED!CCOUNTANTSOF)NDIA
Other Matters
/URAFORESAIDREPORTSUNDERSECTION OFTHE!CTONTHEADEQUACYANDOPERATINGEFFECTIVENESSOFTHEINTERNALlNANCIALCONTROLOVER

Directors and others

THElNANCIALREPORTINGINSOFARASITRELATESTOSUBSIDIARIESJOINTVENTURESANDASSOCIATESINCORPORATEDIN)NDIAISBASEDONTHE
CORRESPONDINGREPORTSOFTHEAUDITORSOFSUCHCOMPANIESINCORPORATEDIN)NDIA

For S.K. MEHTA & CO.
Chartered Accountants
For V SANKAR AIYAR & CO.
Chartered Accountants
Board of
Directors’
Report
For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants

Discussion & Analysis

&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%

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

CONSOLIDATED FINANCIAL STATEMENTS

BALANCE SHEET AS AT MARCH 31, 2019
`IN#RORE
Particulars Note No. March 31, 2019 March 31, 2018
ASSETS
Non-current Assets
A 0ROPERTY0LANTAND%QUIPMENT 2 1,29,647.12 
B #APITAL7ORK IN 0ROGRESS  23,401.01 
C 'OODWILL /N#ONSOLIDATION 1.04 
D )NTANGIBLE!SSETS 3 2,845.60 
E )NTANGIBLE!SSETS5NDER$EVELOPMENT  4,879.73 
F %QUITY)NVESTMENTIN*OINT6ENTURESAND!SSOCIATES 4 11,893.40 
G &INANCIAL!SSETS
I )NVESTMENTS/THERTHAN)NVESTMENTIN*OINT6ENTURESAND 4 23,617.36 
!SSOCIATES
II ,OANS  2,291.10 
III /THER&INANCIAL!SSETS  1,582.81 
H )NCOME4AX!SSETS.ET  1,393.33 
I /THER.ON #URRENT!SSETS 8 3,826.58 
2,05,379.08 1,89,997.84
Current Assets
A )NVENTORIES  77,126.48 
B &INANCIAL!SSETS
I )NVESTMENTS 4 8,416.90 
II 4RADE2ECEIVABLES  15,797.72 
III #ASHAND#ASH%QUIVALENTS 11 933.28 
IV "ANK"ALANCESOTHERTHANABOVE 12 131.40 
V ,OANS  1,592.05 
VI /THER&INANCIAL!SSETS  20,490.53 
C #URRENT4AX!SSETS.ET  481.92 
D /THER#URRENT!SSETS 8 4,578.35 
1,29,548.63 
!SSETS(ELDFOR$ISPOSAL 13 227.40 
1,29,776.03 1,05,677.86
TOTAL ASSETS 3,35,155.11 2,95,675.70

EQUITY AND LIABILITIES

EQUITY
A %QUITY3HARE#APITAL 14 9,181.04 
B /THER%QUITY  1,03,288.20 
C .ON#ONTROLLING)NTEREST 1,877.36 
1,14,346.60 1,16,025.04
 60th Annual Report 2018-19 291

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 

Directors and others

"4OTALOUTSTANDINGDUESOFCREDITORSOTHERTHAN-ICROAND3MALL 40,957.30 
Enterprises
III /THER&INANCIAL,IABILITIES  43,316.04 

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  

Discussion & Analysis

Management’s
For and on Behalf of Board of Directors
3D 3D 3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary

Responsibility Report
$).  $).  !#3 

As per our attached Report of even date

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

3D 3D 3D 3D

Governance

(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

CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Particulars Note No. 2018-19 2017-18
I. Revenue From Operations 23 6,17,242.84 
II. Other Income 24 2,714.28 
III. Total Income (I+II) 6,19,957.12 5,18,961.77
IV. Expenses:
#OSTOF-ATERIAL#ONSUMED  3,06,472.22 
%XCISE$UTY 89,093.91 
[Includes `CRORE`CRORE INCLUDEDIN
2EVENUEFROM/PERATIONS=
0URCHASESOF3TOCK IN 4RADE 1,39,170.13 
#HANGES IN )NVENTORIES OF &INISHED 'OODS 3TOCK IN TRADE AND 3TOCK )N  (3,545.59) 
0ROCESS
%MPLOYEE"ENElTS%XPENSE  11,596.28 
&INANCE#OSTS 28 4,887.98 
$EPRECIATIONAND!MORTIZATIONON
A 4ANGIBLE!SSETS 8,240.07 
B )NTANGIBLE!SSETS 266.38 
8,506.45 
Impairment Losses 0.93 
.ET,OSSONDE RECOGNITIONOFlNANCIALASSETSATAMORTISEDCOST 3.29 
/THER%XPENSES  39,229.00 
Total Expenses (IV) 5,95,414.60 4,85,422.70
60ROlT BEFORE 3HARE OF PROlTLOSS  OF AN ASSOCIATEA JOINT VENTURE AND 24,542.52 
Exceptional Items (III-IV)
6)3HAREOFPROlTLOSS OFASSOCIATESJOINTVENTURES 1,384.38 
6))0ROlTBEFORE4AX66) 25,926.90 
VIII. Tax Expense:
#URRENT4AX 5,310.26 
$EFERRED4AX 3,342.79 
)80ROlT&OR4HE9EAR6)) 6))) 17,273.85 
0ROlTFORTHE9EARATTRIBUTABLETO
%QUITYHOLDERSOFTHE0ARENT 17,376.70 
.ON #ONTROLLING)NTEREST (102.85) 
 60th Annual Report 2018-19 293

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

Directors and others

 "ASIC 18.41 
 $ILUTED 18.41 

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%

3D 3D 3D 3D Report on Corporate

(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL) (CA. V. K. SINGHI)
0ARTNER 0ARTNER 0ARTNER 0ARTNER
Governance

-.O -.O -.O -.O

0LACE.EW$ELHI
$ATE-AY
Consolidated financial
Statements
statements
Financial
 294 Indian Oil Corporation Limited 2nd Integrated Annual Report

CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2019
`IN#RORE
Particulars 2018-19 2017-18
A Cash Flow from Operating Activities
1 0ROlT"EFORE4AX 25,926.90 
2 !DJUSTMENTSFOR
3HAREOF0ROlTOF*OINT6ENTURESAND!SSOCIATES (1,384.38) 
$EPRECIATIONAND!MORTISATION 8,507.38 
,OSS0ROlT ONSALEOF!SSETSNET 169.40 
,OSS0ROlT ONSALEOF)NVESTMENTSNET 1.60 
!MORTISATIONOF#APITAL'RANTS (99.99) 
0ROVISIONFOR0ROBABLE#ONTINGENCIESNET (1,492.97) 
-4- ,OSSGAIN  ARISING ON lNANCIAL ASSETSLIABILITIES AS AT FAIR (13.87) 
VALUETHROUGHPROlTANDLOSS
5NCLAIMED5NSPENTLIABILITIESWRITTENBACK (317.27) 
&AIRVALUE'AINON)NVESTMENT0ROVISIONONINVESTMENTNET (1.60) 
"AD$EBTS!DVANCES#LAIMSWRITTENOFF 9.63 
0ROVISIONFOR$OUBTFUL$EBTS!DVANCES#LAIMSAND 1,031.45 
/BSOLESCENCEOF3TORESNET
-4-,OSS'AIN ON$ERIVATIVES 66.82 
&OREIGN#URRENCY-ONETARY)TEM4RANSLATION 148.39 
$IFFERENCE!CCOUNT
2EMEASUREMENTOF$ElNED"ENElT0LANSTHRU/#) (67.74) 
Interest Income (1,746.27) 
$IVIDEND)NCOME (863.30) 
&INANCECOSTS 4,887.98 
8,835.26 
3 /PERATING0ROlTBEFORE7ORKING#APITAL#HANGES 34,762.16 
4 #HANGEIN7ORKING#APITAL
EXCLUDING#ASH#ASH%QUIVALENTS 
4RADE/THER2ECEIVABLES (15,239.61) 
Inventories (6,580.01) 
4RADEAND/THER0AYABLES 6,761.49 
#HANGEIN7ORKING#APITAL (15,058.13) 
 #ASH'ENERATED&ROM/PERATIONS 19,704.03 
 ,ESS4AXESPAID 5,570.99 
7 Net Cash Flow from Operating Activities (5-6) 14,133.04 29,115.29

B Cash Flow from Investing Activities:

0ROCEEDSFROMSALEOF0ROPERTYPLANTANDEQUIPMENT4RANSFEROF (3,463.84) 
Assets
0URCHASEOF0ROPERTY0LANTAND%QUIPMENT (6,870.01) 
%XPENDITUREON#ONSTRUCTION7ORKIN0ROGRESS (16,547.36) 
0ROCEEDSFROMSALEOFlNANCIALINSTRUMENTSOTHERTHANWORKING 500.00 
CAPITAL
0URCHASEOF/THER)NVESTMENTS (182.14) 
2ECEIPTOFGOVERNMENTGRANTS#APITAL'RANT 7.74 
Interest Income received on Investments 1,737.37 
$IVIDEND)NCOMEON)NVESTMENTS 863.30 
Net Cash Generated/(Used) in Investing Activities: (23,954.94) (17,118.70)
 60th Annual Report 2018-19 295

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

Directors and others

E2 Cash & Cash Equivalents as at the beginning of year 318.73 
NET CHANGE IN CASH & CASH EQUIVALENTS (E1 - E2) 614.55 (10.77)
Notes:

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

Discussion & Analysis

Management’s
For and on Behalf of Board of Directors
3D 3D 3D

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

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
financial

0LACE.EW$ELHI
Consolidated
Statements
statements

$ATE-AY
Financial
 296 Indian Oil Corporation Limited 2nd Integrated Annual Report

CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED ON MARCH 31, 2019
A Equity Share Capital
`IN#RORE
2018-19 2017-18
"ALANCEATTHEBEGINNINGOFTHEYEAR 9,478.69 
Changes in during the year
)SSUEOF"ONUS3HARES - 
3HARESBOUGHTBACK (297.65)  
Balance at the end of the year 9,181.04 9,478.69

B Other Equity

Reserves and Surplus

Retained Bond Capital Securities Insurance Export
Earnings Redemption Reserve/ Premium Reserve 0ROlT
Reserve Capital Reserve
Redemption
Reserve
Opening Balance as at April 1, 2017 76,157.86 2,842.36 341.04 91.37 203.48 53.72
/PENING"ALANCE!DJUSTMENT           
0ROlTFORTHE9EAR           
Other Comprehensive Income           
Total Comprehensive Income 22,353.97 - - - - -
4RANSFERFROM"OND2EDEMPTION2ESERVE          
5TILIZEDFOR)SSUEOF"ONUS3HARES"UY"ACKINCLUDINGEXPENSES           
NETOFTAX
!PPROPRIATIONTOWARDS)NTERIM$IVIDEND           
!PPROPRIATIONTOWARDS&INAL$IVIDEND           
!PPROPRIATIONTOWARDS$IVIDEND$ISTRIBUTION4AX           
!PPROPRIATIONTOWARDS)NSURANCERESERVE.ET          
!PPROPRIATIONTOWARDS"ONDREDEMPTIONRESERVE          
!PPROPRIATIONTOWARDS#ORPORATE3OCIAL2ESPONSIBILITY2ESERVENET           
&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS            
&#-)4$!AMORTISEDDURINGTHEYEAR            
4RANSFERFROMFAIR6ALUEOF%QUITY)NSTRUMENTS           
4RANSFERFROMFAIR6ALUEOF$EBT)NSTRUMENTSRECYCLING            
!DDITIONTO3ECURITIES0REMIUM$URINGTHEYEAR           
!DDITIONTO#APITAL2ESERVE$URINGTHEYEAR          
4RANSFERREDTO3TATEMENTOF0ROlTAND,OSSRECYCLING            
Closing Balance as at March 31, 2018 81,626.28 3,226.85 427.67 76.74 223.48 53.72
 60th Annual Report 2018-19 297

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)

Directors and others

7.33 - (132.42) 18,203.37 3.95 (415.30) 97,356.76 1,904.56 99,261.32
               

Board of
              
           
- - - 252.86 (169.45) 691.86 23,129.24 435.27 23,564.51
                 
               

Directors’
Report
              
              

Discussion & Analysis

              
                 

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

CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED ON MARCH 31, 2019
Reserves and Surplus
Retained Bond Capital Securities Insurance Export
Earnings Redemption Reserve/ Premium Reserve 0ROlT
Reserve Capital Reserve
Redemption
Reserve
Opening Balance as at April 1, 2018 81,626.28 3,226.85 427.67 76.74 223.48 53.72
/PENING"ALANCE!DJUSTMENT            
0ROlTFORTHE9EAR           
Other Comprehensive Income          
Total Comprehensive Income 17,333.60 - 6.75 - - -
4RANSFERFROM"OND2EDEMPTION2ESERVE          
5TILIZEDFOR)SSUEOF"ONUS3HARES"UY"ACKINCLUDINGEXPENSES           
NETOFTAX
3HAREOF*63OLD            
!PPROPRIATIONTOWARDS)NTERIM$IVIDEND           
!PPROPRIATIONTOWARDS&INAL$IVIDEND           
!PPROPRIATIONTOWARDS$IVIDEND$ISTRIBUTION4AX           
!PPROPRIATIONTOWARDS)NSURANCERESERVE.ET          
!PPROPRIATIONTOWARDS"ONDREDEMPTIONRESERVE          
!PPROPRIATIONTOWARDS#ORPORATE3OCIAL2ESPONSIBILITY2ESERVENET           
&OREIGN#URRENCY%XCHANGE'AIN,OSS ON,ONG4ERM-ONETARY)TEMS            
&#-)4$!AMORTISEDDURINGTHEYEAR            
Addition to Capital Reserve/Capital Redeumption Reserve during           
the year
4RANSFERREDTO3TATEMENTOF0ROlTAND,OSSRECYCLING            
Closing Balance as at March 31, 2019 82,854.41 3,171.39 732.16 76.74 241.09 53.72

2EMESUREMENTOF$ElNED"ENElT0LANS
 60th Annual Report 2018-19 299

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
                 
               
              

Directors and others

              
                 

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

Discussion & Analysis

Management’s
For and on Behalf of Board of Directors
3D 3D 3D
(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary

Responsibility Report
$).  $).  !#3 

As per our attached Report of even date

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

3D 3D 3D 3D

Governance

(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

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
I. CORPORATE INFORMATION 1.2 Basis of Consolidation:
 4HE lNANCIAL STATEMENTS COMPRISE lNANCIAL STATEMENTS OF  Subsidiaries:
h)NDIAN/IL#ORPORATION,IMITEDvhTHEHOLDINGCOMPANYvOR
 4HE CONSOLIDATED lNANCIAL STATEMENTS COMPRISE THE
h)/#,v ANDITSSUBSIDIARIESCOLLECTIVELYTHE'ROUP FORTHE
lNANCIAL STATEMENTS OF THE )/#, AND ITS SUBSIDIARIES
YEARENDED-ARCH
AS AT -ARCH   #ONTROL IS ACHIEVED WHEN THE
IOCL is a public limited company domiciled in India and 'ROUPISEXPOSEDORHASRIGHTSTOVARIABLERETURNSFROM
IS INCORPORATED UNDER THE PROVISIONS OF THE #OMPANIES !CT ITSINVOLVEMENTWITHTHEINVESTEEANDHASTHEABILITYTO
APPLICABLE IN )NDIA )TS SHARES ARE LISTED ON TWO RECOGNISED AFFECTTHOSERETURNSTHROUGHITSPOWEROVERTHEINVESTEE
STOCK EXCHANGES IN )NDIA 4HE REGISTERED OFlCE OF THE 3PECIlCALLYTHE'ROUPCONTROLSANINVESTEEIFANDONLYIF
COMPANYISLOCATEDAT)NDIAN/IL"HAVAN' !LI9AVAR*UNG ITHAS
-ARG"ANDRA%AST -UMBAI
• 0OWEROVERTHEINVESTEE
 4HE 'ROUP HAS BUSINESS INTERESTS STRADDLING THE ENTIRE • %XPOSURE OR RIGHTS TO VARIABLE RETURNS FROM ITS
HYDROCARBON VALUE CHAIN n FROM 2ElNING 0IPELINE INVOLVEMENTWITHTHEINVESTEEAND
4RANSPORTATION AND -ARKETING OF 0ETROLEUM 0RODUCTS
• 4HE ABILITY TO USE ITS POWER OVER THE INVESTEE TO
TO 2ESEARCH  $EVELOPMENT %XPLORATION  0RODUCTION
AFFECTITSRETURNS
-ARKETINGOF.ATURAL'ASAND0ETROCHEMICALS
 4HE 'ROUP RE ASSESSES WHETHER OR NOT IT CONTROLS AN
 )NFORMATIONONOTHERRELATEDPARTYRELATIONSHIPSOFTHE'ROUP
INVESTEEIFFACTSANDCIRCUMSTANCES INDICATETHATTHERE
ISPROVIDEDIN.OTE 
ARE CHANGES TO ONE OR MORE OF THE THREE ELEMENTS OF
 4HE CONSOLIDATED lNANCIAL STATEMENTS HAVE BEEN APPROVED CONTROLLISTEDABOVE#ONSOLIDATIONOFASUBSIDIARYBEGINS
FOR ISSUE IN ACCORDANCE WITH A RESOLUTION OF THE "OARD OF WHENTHE'ROUPOBTAINSCONTROLOVERTHESUBSIDIARYAND
DIRECTORSON-AY CEASES WHEN THE 'ROUP LOSES CONTROL OF THE SUBSIDIARY
!SSETSLIABILITIESINCOMEANDEXPENSESOFASUBSIDIARY
II. SIGNIFICANT ACCOUNTING POLICIES
ACQUIREDORDISPOSEDOFDURINGTHEYEARAREINCLUDEDIN
1. BASIS OF PREPARATION/CONSOLIDATION THECONSOLIDATEDlNANCIALSTATEMENTSFROMTHEDATETHE
'ROUPGAINSCONTROLUNTILTHEDATETHE'ROUPCEASESTO
 4HE lNANCIAL STATEMENTS HAVE BEEN PREPARED IN CONTROLTHESUBSIDIARY
ACCORDANCE WITH THE APPLICABLE )NDIAN !CCOUNTING
3TANDARDS)ND!3 PRESCRIBEDUNDER3ECTIONOFTHE  #ONSOLIDATED lNANCIAL STATEMENTS ARE PREPARED USING
#OMPANIES!CTh!CTv READWITHTHE#OMPANIES UNIFORM ACCOUNTING POLICIES FOR LIKE TRANSACTIONS AND
)NDIAN!CCOUNTING3TANDARDS 2ULESANDOTHERRELEVANT OTHER EVENTS IN SIMILAR CIRCUMSTANCES )F A MEMBER OF
PROVISIONSOFTHE!CTAND2ULESTHEREUNDERASAMENDED the group uses accounting policies other than those
FROMTIMETOTIME ADOPTED IN THE CONSOLIDATED lNANCIAL STATEMENTS FOR
LIKE TRANSACTIONS AND EVENTS IN SIMILAR CIRCUMSTANCES
 4HECONSOLIDATEDlNANCIALSTATEMENTSHAVEBEENPREPARED APPROPRIATE ADJUSTMENTS ARE MADE TO THAT GROUP
ONAHISTORICALCOSTBASISEXCEPTFORTHEFOLLOWINGASSETS MEMBERS lNANCIAL STATEMENTS IN PREPARING THE
ANDLIABILITIESWHICHHAVEBEENMEASUREDATFAIRVALUE CONSOLIDATED lNANCIAL STATEMENTS TO ENSURE CONFORMITY
 $ERIVATIVElNANCIALINSTRUMENTS WITHTHEGROUPSACCOUNTINGPOLICIES

 #ERTAIN&INANCIAL!SSETSANDLIABILITIESMEASUREDAT  4HE lNANCIAL STATEMENTS OF ALL ENTITIES USED FOR THE
FAIR VALUE REFER SERIAL NO  OF ACCOUNTING POLICY PURPOSEOFCONSOLIDATIONAREDRAWNUPTOSAMEREPORTING
REGARDINGlNANCIALINSTRUMENTS AND DATEASTHATOFTHEPARENTCOMPANYIEYEARENDEDON
-ARCH&OLLOWINGCONSOLIDATIONPROCEDUREISFOLLOWED

 #ONTINGENTCONSIDERATION
A  #OMBINE LIKE ITEMS OF ASSETS LIABILITIES EQUITY
 4HE CONSOLIDATED lNANCIAL STATEMENTS ARE PRESENTED INCOMEEXPENSESANDCASHmOWSOFTHEPARENTWITH
IN )NDIAN 2UPEES `  WHICH IS THE PRESENTATION AND
FUNCTIONAL  CURRENCY  OF THE 'ROUP AND ALL VALUES ARE
ROUNDED TO THE NEAREST #RORES  UP TO  TWO DECIMALS 
EXCEPTWHENOTHERWISEINDICATED
THOSEOFITSSUBSIDIARIES&ORTHISPURPOSEINCOME
AND EXPENSES OF THE SUBSIDIARY ARE BASED ON THE
AMOUNTS OF THE ASSETS AND LIABILITIES RECOGNISED
IN THE CONSOLIDATED lNANCIAL STATEMENTS AT THE
ACQUISITIONDATE
 60th Annual Report 2018-19 301

About the
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

About IndianOil
EQUITYINCOMEEXPENSESANDCASHmOWSRELATINGTO 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
ARERECOGNISEDINASSETSSUCHASINVENTORYANDlXED
HAVERIGHTSTOTHENETASSETSOFTHEJOINTVENTURE*OINT
ASSETSAREELIMINATEDINFULL )NTRAGROUPLOSSESMAY
CONTROLISTHECONTRACTUALLYAGREEDSHARINGOFCONTROLOF
indicate an impairment that requires recognition
IN THE CONSOLIDATED lNANCIAL STATEMENTS )ND !3
 )NCOME 4AXES APPLIES TO TEMPORARY DIFFERENCES
THATARISEFROMTHEELIMINATIONOFPROlTSANDLOSSES
RESULTINGFROMINTRAGROUPTRANSACTIONS
 0ROlTORLOSSANDEACHCOMPONENTOFOTHERCOMPREHENSIVE
INCOME/#) AREATTRIBUTEDTOTHEEQUITYHOLDERSOFTHE
PARENTOFTHE'ROUPANDTOTHENON
ANARRANGEMENTWHICHEXISTSONLYWHENDECISIONSABOUT
Description of
THERELEVANTACTIVITIESREQUIREUNANIMOUSCONSENTOFTHE
PARTIESSHARINGCONTROL
Capitals
 4HE CONSIDERATIONS MADE IN DETERMINING WHETHER
SIGNIlCANTINmUENCEORJOINTCONTROLARESIMILARTOTHOSE
Directors and others
NECESSARYTODETERMINECONTROLOVERTHESUBSIDIARIES
CONTROLLINGINTERESTS  4HE 'ROUPS INVESTMENTS IN ITS ASSOCIATE AND JOINT
EVENIFTHISRESULTSINTHENON
CONTROLLINGINTERESTSHAVING VENTURE ARE ACCOUNTED FOR USING THE EQUITY METHOD

Board of
ADElCITBALANCE7HENNECESSARYADJUSTMENTSAREMADE 5NDERTHEEQUITYMETHODTHEINVESTMENTINANASSOCIATE
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
INCOMEEXPENSESANDCASHmOWSRELATINGTOTRANSACTIONS 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

Discussion & Analysis

subsidiaries.  4HE 3TATEMENT OF 0ROlT AND ,OSS REmECTS THE 'ROUPS
SHARE OF THE RESULTS OF OPERATIONS OF THE ASSOCIATE OR
 ! CHANGE IN THE OWNERSHIP INTEREST OF A SUBSIDIARY

Management’s
JOINT VENTURE !NY CHANGE IN /#) OF THOSE INVESTEES IS
WITHOUTALOSSOFCONTROLISACCOUNTEDFORASANEQUITY
PRESENTEDASPARTOFTHE'ROUPS/#))NADDITIONWHEN
TRANSACTION)FTHE'ROUPLOSESCONTROLOVERASUBSIDIARY
there has been a change recognised directly in the equity
IT
OFTHEASSOCIATEORJOINTVENTURETHE'ROUPRECOGNISESITS
• $ERECOGNISES THE ASSETS INCLUDING GOODWILL  AND
LIABILITIESOFTHESUBSIDIARY
• $ERECOGNISES THE CARRYING AMOUNT OF ANY NON
RESULTINGFROMTRANSACTIONSBETWEENTHE'ROUPANDTHE
controlling interests
• $ERECOGNISESTHECUMULATIVETRANSLATIONDIFFERENCES
recorded in equity
• 2ECOGNISES THE FAIR VALUE OF THE CONSIDERATION
SHAREOFANYCHANGESWHENAPPLICABLEINTHESTATEMENT
Responsibility Report
OF CHANGES IN EQUITY 5NREALISED GAINS AND LOSSES
ASSOCIATEORJOINTVENTUREAREELIMINATEDTOTHEEXTENTOF
Business
THEINTERESTINTHEASSOCIATEORJOINTVENTURE
 )F AN ENTITYS SHARE OF LOSSES OF AN ASSOCIATE OR A JOINT
VENTUREEQUALSOREXCEEDSITSINTERESTINTHEASSOCIATEOR Report on Corporate

received JOINTVENTUREWHICHINCLUDESANYLONGTERMINTERESTTHAT
INSUBSTANCEFORMPARTOFTHE'ROUPSNETINVESTMENTIN
Governance

• 2ECOGNISESTHEFAIRVALUEOFANYINVESTMENTRETAINED
• 2ECOGNISESANYSURPLUSORDElCITINPROlTORLOSS
• 2ECLASSIlES THE PARENTS SHARE OF COMPONENTS
PREVIOUSLY RECOGNISED IN /#) TO PROlT OR LOSS OR
THE ASSOCIATE OR JOINT VENTURE  THE ENTITY DISCONTINUES
RECOGNISING ITS SHARE OF FURTHER LOSSES !DDITIONAL
LOSSESARERECOGNISEDONLYTOTHEEXTENTTHATTHE'ROUP
has incurred legal or constructive obligations or made
financial
RETAINED EARNINGS AS APPROPRIATE AS WOULD BE PAYMENTS ON BEHALF OF THE ASSOCIATE OR JOINT VENTURE
REQUIRED IF THE 'ROUP HAD DIRECTLY DISPOSED OF THE )F THE ASSOCIATE OR JOINT VENTURE SUBSEQUENTLY REPORTS
Consolidated
Statements

PROlTSTHEENTITYRESUMESRECOGNISINGITSSHAREOFTHOSE
statements

related assets or liabilities

Financial

PROlTSONLYAFTERITSSHAREOFTHEPROlTSEQUALSTHESHARE
OFLOSSESNOTRECOGNISED
 302 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
 4HEAGGREGATEOFTHE'ROUPSSHAREOFPROlTORLOSSOFAN DEPRECIATIONAMORTIZATION AND CUMULATIVE IMPAIRMENT
ASSOCIATEANDAJOINTVENTUREISSHOWNONTHEFACEOFTHE EXCEPTFREEHOLDLANDWHICHISSTATEDATHISTORICALCOST
3TATEMENTOF0ROlTAND,OSS
4ECHNICAL KNOW
HOWLICENSE FEE RELATING TO PLANTS
 4HElNANCIALSTATEMENTSOFTHEASSOCIATEORJOINTVENTURE FACILITIESANDSPECIlCSOFTWARETHATAREINTEGRALPARTOF
AREPREPAREDFORTHESAMEREPORTINGPERIODASTHE'ROUP THERELATEDHARDWAREARECAPITALISEDASPARTOFCOSTOF
7HEN NECESSARY ADJUSTMENTS ARE MADE TO BRING THE THEUNDERLYINGASSET
ACCOUNTINGPOLICIESINLINEWITHTHOSEOFTHE'ROUP
3PARE PARTS ARE CAPITALIZED WHEN THEY MEET THE
 !FTER APPLICATION OF THE EQUITY METHOD THE 'ROUP DElNITIONOF00%IEWHENTHE'ROUPINTENDSTOUSE
DETERMINES WHETHER IT IS NECESSARY TO RECOGNISE AN THESEDURINGMORETHANAPERIODOFMONTHS
IMPAIRMENTLOSSONITSINVESTMENTSINITSASSOCIATEORJOINT
4HE ACQUISITION OF SOME ITEMS OF 00% ALTHOUGH NOT
VENTURE !T EACH REPORTING DATE THE 'ROUP DETERMINES
DIRECTLYINCREASINGTHEFUTUREECONOMICBENElTSOFANY
WHETHERTHEREISOBJECTIVEEVIDENCETHATTHEINVESTMENT
PARTICULAREXISTINGITEMOF00%MAYBENECESSARYFOR
IN THE ASSOCIATE OR JOINT VENTURE IS IMPAIRED )F THERE
THE #OMPANY TO OBTAIN THE FUTURE ECONOMIC BENElTS
IS SUCH EVIDENCE THE 'ROUP CALCULATES THE AMOUNT OF
FROMITSOTHERASSETS3UCHITEMSOF00%ARERECOGNIZED
IMPAIRMENT AS THE DIFFERENCE BETWEEN THE RECOVERABLE
ASASSETS
AMOUNTOFTHEASSOCIATEORJOINTVENTUREANDITSCARRYING
VALUE AND THEN RECOGNISES THE LOSS AS @3HARE OF PROlT /N TRANSITION TO )ND !3 THE 'ROUP HAS ELECTED TO
OFANASSOCIATEANDAJOINTVENTUREINTHE3TATEMENTOF CONTINUE WITH THE CARRYING VALUE OF ALL OF ITS 00%
0ROlTAND,OSS RECOGNISED AS AT !PRIL   MEASURED AS PER THE
PREVIOUS '!!0 AND USE THAT CARRYING VALUE AS THE
 5PONLOSSOFSIGNIlCANTINmUENCEOVERTHEASSOCIATEOR
DEEMEDCOSTOFTHEPROPERTYPLANTANDEQUIPMENT
JOINTCONTROLOVERTHEJOINTVENTURETHE'ROUPMEASURES
AND RECOGNISES ANY RETAINED INVESTMENT AT ITS FAIR
VALUE !NY DIFFERENCE BETWEEN THE CARRYING AMOUNT OF
THE ASSOCIATE OR JOINT VENTURE UPON LOSS OF SIGNIlCANT
INmUENCEORJOINTCONTROLANDTHEFAIRVALUEOFTHERETAINED
INVESTMENTANDPROCEEDSFROMDISPOSALISRECOGNISEDIN
2.2 Capital Work in Progress (CWIP)
A Construction Period Expenses on Projects
2EVENUEEXPENSES EXCLUSIVELY ATTRIBUTABLETO PROJECTS
INCURRED DURING CONSTRUCTION PERIOD ARE CAPITALIZED
PROlTORLOSS (OWEVERSUCHEXPENSESINRESPECTOFCAPITALFACILITIES
 Interest in Joint operations: BEING EXECUTED ALONG WITH THE PRODUCTIONOPERATIONS
SIMULTANEOUSLYARECHARGEDTOREVENUE
 &ORTHEINTERESTINJOINTOPERATIONSTHE'ROUPRECOGNISES &INANCINGCOSTINCURREDDURINGCONSTRUCTIONPERIODON
• !SSETSINCLUDINGITSSHAREOFANYASSETSHELDJOINTLY LOANS SPECIlCALLY BORROWED AND UTILIZED FOR PROJECTS
IS CAPITALIZED ON QUARTERLY BASIS UP TO THE DATE OF
• ,IABILITIES INCLUDING ITS SHARE OF ANY LIABILITIES
CAPITALIZATION
INCURREDJOINTLY
&INANCINGCOSTIFANYINCURREDON'ENERAL"ORROWINGS
• 2EVENUE FROM THE SALE OF ITS SHARE OF THE OUTPUT
USEDFORPROJECTSISCAPITALIZEDATTHEWEIGHTEDAVERAGE
ARISINGFROMTHEJOINTOPERATION
COST4HEAMOUNTOFSUCHBORROWINGSISDETERMINEDON
• 3HAREOFTHEREVENUEFROMTHESALEOFTHEOUTPUTBY QUARTERLYBASISAFTERSETTINGOFFTHEAMOUNTOFINTERNAL
THEJOINTOPERATION ACCRUALS
• %XPENSES INCLUDING ITS SHARE OF ANY EXPENSES
B Capital Stores
INCURREDJOINTLY
#APITALSTORESAREVALUEDATCOST3PECIlCPROVISIONIS
2. FIXED ASSETS
MADEFORLIKELYDIMINUTIONINVALUEWHEREVERREQUIRED
2.1 Property, Plant and Equipment (PPE) and Intangible
2.3 Intangible Assets
Assets
4ECHNICALKNOW
HOWLICENSEFEERELATINGTOPRODUCTION
4HECOSTOFANITEMOFPROPERTYPLANTANDEQUIPMENTIS
PROCESSANDPROCESSDESIGNARERECOGNIZEDAS)NTANGIBLE
RECOGNIZEDASANASSETIFANDONLYIF
!SSETSANDAMORTIZEDONASTRAIGHTLINEBASISOVERTHE
A  IT IS PROBABLE THAT FUTURE ECONOMIC BENElTS LIFEOFTHEUNDERLYINGPLANTFACILITY
ASSOCIATEDWITHTHEITEMWILLmOWTOTHEENTITYAND
%XPENDITURE INCURRED ON 2ESEARCH  $EVELOPMENT
B  THECOSTOFTHEITEMCANBEMEASUREDRELIABLY OTHERTHANONCAPITALACCOUNTISCHARGEDTOREVENUE
00% ARE STATED AT ACQUISITION COST LESS ACCUMULATED
 60th Annual Report 2018-19 303

About the
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!PRILMEASUREDASPER
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(OWEVERWHERESUCHCOMPUTER

About IndianOil
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
!CTEXCEPTINCASEOFTHEFOLLOWINGASSETS
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
)FNOTTHECHANGEINUSEFULLIFEFROMINDElNITETOlNITE assessment
ISMADEONAPROSPECTIVEBASIS
B  5SEFUL LIFE OF  YEARS FOR SOLAR POWER PLANT

Directors and others

)NTANGIBLE !SSETS ACQUIRED SEPARATELY ARE MEASURED considered based on technical assessment
ON INITIAL RECOGNITION AT COST 4HE COST OF )NTANGIBLE
Assets acquired in a business combination is their C  )NCASEOFSPECIlCAGREEMENTSEGENABLINGASSETS

Board of
FAIR VALUE AT THE DATE OF ACQUISITION &OLLOWING INITIAL ETCUSEFULLIFEASPERAGREEMENTOR3CHEDULE))
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

Discussion & Analysis

4HEUSEFULLIVESOF)NTANGIBLE!SSETSAREASSESSEDAS
EITHERlNITEORINDElNITE)NTANGIBLE!SSETSWITHlNITE F  )N OTHER CASES 3PARE 0ARTS ETC USEFUL LIFE IS
considered based on the technical assessment

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 CAPITALIZATIONSALEDISPOSALOREARMARKEDFORDISPOSAL
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&URTHERINCASEOFCATALYSTWITHNOBLEMETAL

Business
OF FUTURE ECONOMIC BENElTS EMBODIED IN THE ASSET CONTENTRESIDUALVALUEISCONSIDEREDBASEDONTHECOST
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

FORMSPARTOFCARRYINGVALUEOFANOTHERASSET 'ROUP DEPRECIATES CAPITALIZED SPARES OVER THE LIFE OF

THESPAREFROMTHEDATEITISAVAILABLEFORUSE
 'AINS OR LOSSES ARISING FROM DERECOGNITION OF AN
INTANGIBLEASSETAREMEASUREDASTHEDIFFERENCEBETWEEN 00%OTHERTHAN,0'#YLINDERSAND0RESSURE2EGULATORS
financial

THENETDISPOSALPROCEEDSANDTHECARRYINGAMOUNTOF costing upto ` PERITEMAREDEPRECIATEDFULLYIN

THEASSETANDARERECOGNISEDINTHE3TATEMENTOF0ROlT THEYEAROFCAPITALIZATION&URTHERSPARESCOMPONENTS
Consolidated

AND,OSSWHENTHEASSETISDERECOGNIZED LIKECATALYSTEXCLUDINGNOBLEMETALCONTENTANDMAJOR
Statements
statements
Financial

OVERHAULINSPECTION ARE ALSO DEPRECIATED FULLY OVER

THEIRRESPECTIVEUSEFULLIFE
 304 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
4HE RESIDUAL VALUES USEFUL LIVES AND METHODS OF II  ! LEASED ASSET IS DEPRECIATED OVER THE USEFUL LIFE
DEPRECIATIONOF00%AREREVIEWEDATEACHlNANCIALYEAR OF THE ASSET (OWEVER IF THERE IS NO REASONABLE
ENDANDADJUSTEDPROSPECTIVELYIFAPPROPRIATE CERTAINTY THAT THE 'ROUP WILL OBTAIN OWNERSHIP BY
3. LEASES
3.1 ! LEASEISCLASSIlEDATTHEINCEPTIONDATEAS AlNANCE
LEASE OR AN OPERATING LEASE ! LEASE THAT TRANSFERS
SUBSTANTIALLY ALL THE RISKS AND REWARDS INCIDENTAL TO
OWNERSHIPTOTHE'ROUPISCLASSIlEDASAlNANCELEASE
3.2 Operating Leases as a Lessee:
 ,EASE RENTALS ARE RECOGNIZED AS EXPENSE PRO RATA ON
QUARTERLYBASISONASTRAIGHTLINEBASISWITHREFERENCETO
LEASETERMSANDOTHERCONSIDERATIONSEXCEPTWHERE
LEASETOTHENETINVESTMENT
I  !NOTHER SYSTEMATIC BASIS IS MORE REPRESENTATIVE
OFTHETIMEPATTERNOFTHEBENElTDERIVEDFROMTHE
ASSETTAKENONLEASEOR
THEENDOFTHELEASETERMTHEASSETISDEPRECIATED
OVERTHESHORTEROFTHEESTIMATEDUSEFULLIFEOFTHE
ASSETANDTHELEASETERM
3.5 Finance Leases as Lessor
!LLASSETSGIVENONlNANCELEASEARESHOWNASRECEIVABLES
AT AN AMOUNT EQUAL TO NET INVESTMENT IN THE LEASE
0RINCIPALCOMPONENTOFTHELEASERECEIPTSAREADJUSTED
against outstanding receivables and interest income is
accounted by applying the interest rate implicit in the
3.6 4HE DETERMINATION OF WHETHER AN ARRANGEMENT IS
OR CONTAINS  A LEASE IS BASED ON THE SUBSTANCE OF
THE ARRANGEMENT AT THE INCEPTION OF THE LEASE 4HE
ARRANGEMENTISORCONTAINSALEASEIFFULlLMENTOFTHE
II  4HE PAYMENTS TO THE LESSOR ARE STRUCTURED TO ARRANGEMENTISDEPENDENTONTHEUSEOFASPECIlCASSET
INCREASE IN LINE WITH EXPECTED GENERAL INmATION TO or assets and the arrangement conveys a right to use
COMPENSATE FOR THE LESSORS EXPECTED INmATIONARY THE ASSET OR ASSETS EVEN IF THAT RIGHT IS NOT EXPLICITLY
cost increases SPECIlEDINANARRANGEMENT
 #ONTINGENT RENTALS ARE RECOGNISED AS EXPENSES IN THE  &ORARRANGEMENTSENTEREDINTOPRIORTO!PRILTHE
PERIODSINWHICHITISINCURRED 'ROUPHASDETERMINEDWHETHERTHEARRANGEMENTCONTAIN
3.3 Operating Leases as a Lessor: LEASEONTHEBASISOFFACTSANDCIRCUMSTANCESEXISTINGON
THEDATEOFTRANSITION
 2ENTALINCOMEFROMOPERATINGLEASEISRECOGNISEDONA
STRAIGHT
LINE BASIS OVER THE TERM OF THE RELEVANT LEASE 4. IMPAIRMENT OF NON-FINANCIAL ASSETS
EXCEPTWHERE
 4HE 'ROUP ASSESSES AT EACH REPORTING DATE WHETHER
I  !NOTHER SYSTEMATIC BASIS IS MORE REPRESENTATIVE THEREISANINDICATIONTHATANASSETMAYBEIMPAIRED)F
OFTHETIMEPATTERNOFTHEBENElTDERIVEDFROMTHE ANYINDICATIONEXISTSORWHENANNUALIMPAIRMENTTESTING
ASSETGIVENONLEASEOR
II  4HE PAYMENTS TO THE LESSOR ARE STRUCTURED TO
GENERATINGUNITS#'5 
INCREASE IN LINE WITH EXPECTED GENERAL INmATION TO
COMPENSATE FOR THE LESSORS EXPECTED INmATIONARY
FORANASSETISREQUIREDTHE'ROUPESTIMATESTHEASSETS
RECOVERABLE AMOUNT !N ASSETS RECOVERABLE AMOUNT IS
THEHIGHEROFANASSETSORCASH
FAIR VALUE LESS COSTS OF DISPOSAL AND ITS VALUE IN USE
2ECOVERABLE AMOUNT IS DETERMINED FOR AN INDIVIDUAL
COSTINCREASES
3.4 Finance Leases as Lessee:
I  &INANCELEASESARECAPITALISEDATTHECOMMENCEMENT
OFTHELEASEATTHEINCEPTIONDATEFAIRVALUEOFTHE
ASSET UNLESS THE ASSET DOES NOT GENERATE CASH INmOWS
THATARELARGELYINDEPENDENTOFTHOSEFROMOTHERASSETS
ORGROUPSOFASSETS
 )MPAIRMENTLOSSISRECOGNIZEDWHENTHECARRYINGAMOUNT
LEASEDPROPERTYORIFLOWERATTHEPRESENTVALUEOF OFANASSETEXCEEDSRECOVERABLEAMOUNT
THEMINIMUMLEASEPAYMENTS,EASEPAYMENTSARE
APPORTIONEDBETWEENlNANCECHARGESANDREDUCTION
OFTHELEASELIABILITYSOASTOACHIEVEACONSTANTRATE
TAX DISCOUNT RATE THAT REmECTS CURRENT MARKET
OFINTERESTONTHEREMAININGBALANCEOFTHELIABILITY
&INANCECHARGESARERECOGNISEDINlNANCECOSTSIN
 )N ASSESSING VALUE IN USE THE ESTIMATED FUTURE CASH
mOWS ARE DISCOUNTED TO THEIR PRESENT VALUE USING A
PRE
ASSESSMENTS OF THE TIME VALUE OF MONEY AND THE RISKS
SPECIlCTOTHEASSET)NDETERMININGFAIRVALUELESSCOSTS
THE3TATEMENTOF0ROlTAND,OSSUNLESSTHESAME OF DISPOSAL RECENT MARKET TRANSACTIONS ARE TAKEN INTO
ARE DIRECTLY ATTRIBUTABLE TO QUALIFYING ASSETS IN ACCOUNT )F NO SUCH TRANSACTIONS CAN BE IDENTIlED AN
WHICHCASETHEYARECAPITALIZEDINACCORDANCEWITH APPROPRIATEVALUATIONMODELISUSED4HESECALCULATIONS
THE'ROUPSGENERALPOLICY ONTHEBORROWING COSTS ARE CORROBORATED BY VALUATION MULTIPLES QUOTED SHARE
#ONTINGENT RENTALS ARE RECOGNISED AS EXPENSES IN PRICES FOR PUBLICLY TRADED COMPANIES OR OTHER AVAILABLE
THEPERIODSINWHICHITISINCURRED FAIRVALUEINDICATORS
 60th Annual Report 2018-19 305

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
SEPARATELY FOR EACH OF THE 'ROUPS #'5S TO WHICH THE
INDIVIDUAL ASSETS ARE ALLOCATED 4HESE BUDGETS AND
MONETARY ITEMS MEASURED
FORECASTCALCULATIONSGENERALLYCOVERAPERIODOFYEARS
CURRENCYARETRANSLATEDUSINGTHEEXCHANGERATESATTHE
From the
DATEWHENTHEFAIRVALUEISDETERMINED4HEGAINORLOSS
ARISING ON TRANSLATION OF NON
ATFAIRVALUEISTREATEDINLINEWITHTHERECOGNITIONOFTHE
&ORLONGERPERIODSALONG
TERMGROWTHRATEISCALCULATED GAINORLOSSONTHECHANGEINFAIRVALUEOFTHEITEMIE
AND APPLIED TO PROJECT FUTURE CASH mOWS AFTER THE TRANSLATIONDIFFERENCESONITEMSWHOSEFAIRVALUEGAINOR

About IndianOil
lFTEENTHYEAR4OESTIMATECASHmOWPROJECTIONSBEYOND LOSSISRECOGNISEDIN/THER#OMPREHENSIVE)NCOME/#) 
PERIODS COVERED BY THE MOST RECENT BUDGETSFORECASTS ORTHE3TATEMENTOF0ROlTAND,OSSAREALSORECOGNISED
'ROUP EXTRAPOLATES CASH mOW PROJECTIONS IN THE BUDGET IN/#)ORTHE3TATEMENTOF0ROlTAND,OSSRESPECTIVELY 
USING A STEADY OR DECLINING GROWTH RATE FOR SUBSEQUENT
6.5 A !NY GAINS OR LOSSES ARISING DUE TO DIFFERENCES IN
YEARSUNLESSANINCREASINGRATECANBEJUSTIlED
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

Directors and others

RECOVERABLEAMOUNT!PREVIOUSLYRECOGNISEDIMPAIRMENT
B I %XCHANGE DIFFERENCES PERTAINING TO LONG TERM
LOSSISREVERSEDONLYIFTHEREHASBEENACHANGEINTHE
FOREIGNCURRENCYLOANSOBTAINEDORRE lNANCEDON
ASSUMPTIONS USED TO DETERMINE THE ASSETS RECOVERABLE
ORBEFORE-ARCH

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
DETERMINEDNETOFDEPRECIATIONHADNOIMPAIRMENTLOSS 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

Discussion & Analysis

OR CONSTRUCTION OF THE QUALIFYING ASSET ARE CAPITALIZED currency loan by recognising as gain or loss in the
ASPARTOFTHECOSTOFSUCHASSETS!QUALIFYINGASSETIS 3TATEMENTOF0ROlTAND,OSS

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

AS CASH RECEIVABLES PAYABLES ETC  OUTSTANDING AT THE

OPERATION AS APPROPRIATE )N THE lNANCIAL STATEMENTS
ENDOFREPORTINGPERIODARETRANSLATEDATEXCHANGERATES
THATINCLUDETHEFOREIGNOPERATIONANDTHEREPORTINGENTITY
PREVAILINGONTHATDATE
EGCONSOLIDATEDlNANCIALSTATEMENTSWHENTHEFOREIGN
6.4 .ON MONETARY ITEMS DENOMINATED IN FOREIGN CURRENCY OPERATIONISASUBSIDIARY SUCHEXCHANGEDIFFERENCESARE
financial

SUCH AS INVESTMENTS lXED ASSETS ETC  ARE RECORDED RECOGNISEDINITIALLYIN/#)4HESEEXCHANGEDIFFERENCES

AT THE EXCHANGE RATE PREVAILING ON THE DATE OF THE ARERECLASSIlEDFROMEQUITYTOPROlTORLOSSONDISPOSAL
Consolidated
Statements

OFTHENETINVESTMENT
statements

TRANSACTIONOTHERTHANTHOSEMEASUREDATFAIRVALUE
Financial
 306 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
 /N CONSOLIDATION THE ASSETS AND LIABILITIES OF FOREIGN ,UBRICANTS ARE VALUED AT COST ON WEIGHTED AVERAGE
OPERATIONSARETRANSLATEDINTO).2ATTHERATEOFEXCHANGE BASISORNETREALIZABLEVALUEWHICHEVERISLOWER#OST
PREVAILINGATTHEREPORTINGDATEANDTHEIRSTATEMENTSOF OFLUBRICANTSINTERNALLYPRODUCEDISDETERMINEDBASED
PROlTORLOSSARETRANSLATEDATEXCHANGERATESPREVAILING ONCOSTOFINPUTSANDPROCESSINGCOST
AT THE DATES OF THE TRANSACTIONS &OR PRACTICAL REASONS
)MPORTEDPRODUCTSINTRANSITAREVALUEDATCOSTORNET
the group uses an average rate to translate income
REALISABLEVALUEWHICHEVERISLOWER
AND EXPENSE ITEMS IF THE AVERAGE RATE APPROXIMATES
THE EXCHANGE RATES AT THE DATES OF THE TRANSACTIONS 7.3 Stores and Spares
4HE EXCHANGE DIFFERENCES ARISING ON TRANSLATION FOR
CONSOLIDATION ARE RECOGNISED IN /#) /N DISPOSAL OF A 3TORES AND 3PARES INCLUDING 0ACKING #ONTAINERS IE
FOREIGNOPERATIONTHECOMPONENTOF/#)RELATINGTOTHAT "ARRELS4INSETC AREVALUEDATWEIGHTEDAVERAGECOST
PARTICULAR FOREIGN OPERATION IS RECOGNISED IN PROlT OR 3PECIlC PROVISION IS MADE IN RESPECT OF IDENTIlED
LOSS OBSOLETE STORES  SPARES AND CHEMICALS FOR LIKELY
DIMINUTION IN VALUE &URTHER AN ADHOC PROVISION 
 !NY GOODWILL ARISING IN THE ACQUISITIONBUSINESS  IS ALSO MADE ON THE BALANCE STORES AND SPARES
COMBINATION OF A FOREIGN OPERATION ON OR AFTER  !PRIL EXCLUDING BARRELS TINS STORES IN TRANSIT CHEMICALS
  AND ANY FAIR VALUE ADJUSTMENTS TO THE CATALYSTS CRUDE OIL AND OWN PRODUCTS  TOWARDS LIKELY
CARRYING AMOUNTS OF ASSETS AND LIABILITIES ARISING ON DIMINUTIONINTHEVALUE
THE ACQUISITION ARE TREATED AS ASSETS AND LIABILITIES OF
THEFOREIGNOPERATIONANDTRANSLATEDATTHESPOTRATEOF 3TORESAND3PARESINTRANSITAREVALUEDATCOST
EXCHANGEATTHEREPORTINGDATE 8. PROVISIONS, CONTINGENCIES & CONTIGENT ASSETS
 !NYGOODWILLORFAIRVALUEADJUSTMENTSARISINGINBUSINESS 8.1 Provisions
COMBINATIONSACQUISITIONS WHICH OCCURRED BEFORE THE
!PRILARETREATEDASASSETSANDLIABILITIESOFTHE 0ROVISIONS ARE RECOGNIZED WHEN THE 'ROUP HAS A
ENTITYRATHERTHANASASSETSANDLIABILITIESOFTHEFOREIGN PRESENTOBLIGATIONLEGALORCONSTRUCTIVE ASARESULTOF
OPERATION 4HEREFORE THOSE ASSETS AND LIABILITIES ARE
NON
MONETARYITEMSALREADYEXPRESSEDINTHEFUNCTIONAL
CURRENCY OF THE PARENT AND NO FURTHER TRANSLATION
DIFFERENCESOCCUR
APASTEVENTITISPROBABLETHATANOUTmOWOFRESOURCES
EMBODYINGECONOMICBENElTSWILLBEREQUIREDTOSETTLE
THEOBLIGATIONANDARELIABLEESTIMATECANBEMADEOF
THEAMOUNTOFTHEOBLIGATION

7. INVENTORIES 7HENTHE'ROUPEXPECTSSOMEORALLOFAPROVISIONTOBE
RECOVEREDFROMATHIRDPARTYARECEIVABLEISRECOGNISED
7.1 Raw Materials & Stock-in-Process ASASEPARATEASSETBUTONLYWHENITISVIRTUALLYCERTAIN
2AW MATERIALS INCLUDING CRUDE OIL ARE VALUED AT COST ANDAMOUNTOFTHERECEIVABLECANBEMEASUREDRELIABLY
DETERMINEDONWEIGHTEDAVERAGEBASISORNETREALIZABLE 4HEEXPENSERELATINGTOAPROVISIONISPRESENTEDINTHE
VALUEWHICHEVERISLOWER 3TATEMENTOF0ROlTAND,OSSNETOFREIMBURSEMENTIF
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
THATREmECTSWHENAPPROPRIATETHERISKSSPECIlCTOTHE
#RUDEOILIN4RANSITISVALUEDATCOSTORNETREALIZABLE LIABILITY7HENDISCOUNTINGISUSEDTHEINCREASEINTHE
VALUEWHICHEVERISLOWER PROVISIONDUETOTHEPASSAGEOFTIMEISRECOGNISEDASA
lNANCECOST)NCREASEINCARRYINGAMOUNTOFPROVISIONS
)NITIALCOSTOFINVENTORIESINCLUDESTHETRANSFEROFGAINS
WHERE INTEREST RATE IS SPECIlED ARE ACCOUNTED IN
ANDLOSSESONQUALIFYINGCASHmOWHEDGESRECOGNISED
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
AREADDEDTOORDEDUCTEDFROMTHECOSTOFTHEASSET
8.2 Contingent Liabilities and Contingent assets
3HOW
CAUSE NOTICES ISSUED BY VARIOUS 'OVERNMENT
!UTHORITIESAREGENERALLYNOTCONSIDEREDASOBLIGATION
AGENCYSERVICESBECAUSEITTYPICALLYCONTROLSTHEGOODS
ORSERVICESBEFORETRANSFERRINGTHEMTOTHECUSTOMER
About IndianOil
 4HE'ROUPCONSIDERSWHETHERTHEREAREOTHERPROMISESIN
THE CONTRACT THAT ARE SEPARATE PERFORMANCE OBLIGATIONS
TOWHICHAPORTIONOFTHETRANSACTIONPRICENEEDSTOBE
ALLOCATEDEGCUSTOMERLOYALTYPOINTS )NDETERMINING
7HENTHEDEMANDNOTICESARERAISEDAGAINSTSUCHSHOW
THETRANSACTIONPRICEFORTHESALEOFPRODUCTSTHE'ROUP
CAUSENOTICESANDAREDISPUTEDBYTHE'ROUPTHESEARE
CONSIDERS THE EFFECTS OF VARIABLE CONSIDERATION THE
CLASSIlEDASDISPUTEDOBLIGATIONS

Description of
EXISTENCEOFSIGNIlCANTlNANCINGCOMPONENTSNON 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

Directors and others

OBLIGATIONS WHERE THE OUTmOW OF RESOURCES IS PETROCHEMICALPRODUCTS#RUDEANDGASARERECOGNISEDAT
PROBABLEASPERABOVE APOINTINTIMEGENERALLYUPONDELIVERYOFTHEPRODUCTS
4HE 'ROUP RECOGNIZES REVENUE OVER TIME USING INPUT
B  ALL OTHER CASES ARE DISCLOSED AS CONTINGENT

Board of
METHOD ON THE BASIS OF TIME ELAPSED  IN CASE OF NON
LIABILITIES UNLESS THE POSSIBILITY OF OUTmOW OF REFUNDABLEDEPOSITSFROMDEALERSANDSERVICECONTRACTS
RESOURCESISREMOTE )NCASEOFCONSTRUCTIONCONTRACTSREVENUEANDCOSTARE
#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

Discussion & Analysis

AMOUNT CANNOT BE ESTIMATED RELIABLY THE OBLIGATION FORMS PART OF THE COST OF PRODUCTION IRRESPECTIVE OF
IS DISCLOSED AS A CONTINGENT LIABILITY #ONTINGENT WHETHER THE GOODS ARE SOLD OR NOT 3INCE THE RECOVERY

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 ONITSOWNACCOUNT2ATHERITISTAXCOLLECTEDONVALUE
ONCAPITALACCOUNTARECONSIDEREDFORDISCLOSURE ADDED TO THE COMMODITYBY THE SELLERON BEHALFOF THE
! #ONTINGENT !SSET IS DISCLOSED WHERE AN INmOW OF GOVERNMENT!CCORDINGLYITISEXCLUDEDFROMREVENUE

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 AMOUNTTHE'ROUPESTIMATESTHEAMOUNTOFCONSIDERATION
AND IT EARNS REVENUE PRIMARILY FROM SALE OF PETROLEUM TOWHICHITWILLBEENTITLEDINEXCHANGEFORTRANSFERRING
Governance

PRODUCTS AND PETROCHEMICAL PRODUCTS )N ADDITION THE THEGOODSTOTHECUSTOMER4HEVARIABLECONSIDERATIONIS

'ROUP ALSO EARNS REVENUE FROM OTHER BUSINESSES WHICH estimated at contract inception and constrained until it
COMPRISES'AS%XPLORATION0RODUCTIONAND/THERS ISHIGHLYPROBABLETHATASIGNIlCANTREVENUEREVERSALIN
THE AMOUNT OF CUMULATIVE REVENUE RECOGNISED WILL NOT
 2EVENUE IS RECOGNISED WHEN CONTROL OF THE GOODS OR
financial

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
PERIOD EXCEEDS A THRESHOLD SPECIlED IN THE CONTRACT AMOUNTS FOR lNANCIAL REPORTING PURPOSES AT THE
2EBATES ARE OFFSET AGAINST AMOUNTS PAYABLE BY THE REPORTINGDATE
CUSTOMER 4HE VOLUME REBATES#ASH DISCOUNT GIVE RISE
 $EFERRED TAX LIABILITIES ARE RECOGNISED FOR ALL TAXABLE
TO VARIABLE CONSIDERATION 4O ESTIMATE THE VARIABLE
TEMPORARYDIFFERENCESEXCEPT
CONSIDERATION FOR THE EXPECTED FUTURE REBATESCASH
DISCOUNT THE 'ROUP APPLIES THE MOST LIKELY AMOUNT A  WHENTHEDEFERREDTAXLIABILITYARISESFROMTHEINITIAL
METHODFORCONTRACTSWITHASINGLE
VOLUMETHRESHOLDAND RECOGNITION OF GOODWILL OR AN ASSET OR LIABILITY IN A
THEEXPECTEDVALUEMETHODFORCONTRACTSWITHMORETHAN TRANSACTIONTHATISNOTABUSINESSCOMBINATIONAND
ONE VOLUME THRESHOLD 4HE SELECTED METHOD THAT BEST AT THE TIME OF THE TRANSACTION AFFECTS NEITHER THE
PREDICTSTHEAMOUNTOFVARIABLECONSIDERATIONISPRIMARILY ACCOUNTINGPROlTNORTAXABLEPROlTORLOSS
DRIVEN BY THE NUMBER OF VOLUME THRESHOLDS CONTAINED
INTHECONTRACTANDACCORDINGLYTHE'ROUPRECOGNIZESA B  IN RESPECT OF TAXABLE TEMPORARY DIFFERENCES
REFUNDLIABILITYFORTHEEXPECTEDFUTUREREBATES ASSOCIATED WITH INVESTMENTS IN SUBSIDIARIES
9.5 Loyalty Points
 4HE'ROUPOPERATESVARIOUSLOYALTYPOINTSCHEMES4HE
transaction price allocated to customer loyalty points
is based on their relative estimated standalone selling
PRICE AND THE SAME IS REDUCED FROM REVENUE FROM SALE
ASSOCIATESANDINTERESTSINJOINTVENTURESWHENTHE
TIMINGOFTHEREVERSALOFTHETEMPORARYDIFFERENCES
can be controlled and it is probable that the
TEMPORARY DIFFERENCES WILL NOT REVERSE IN THE
FORESEEABLEFUTURE
 $EFERREDTAXASSETSARERECOGNISEDFORALLDEDUCTIBLE
OF GOODS 7HILE ESTIMATING STANDALONE SELLING PRICE OF TEMPORARYDIFFERENCESTHECARRYFORWARDOFUNUSED
CUSTOMERLOYALTYPOINTSTHELIKELIHOODOFEXERCISINGTHE TAXCREDITSANDANYUNUSEDTAXLOSSES$EFERREDTAX
OPTIONISADJUSTED7HEREVERTHE'ROUPISACTINGASAGENT ASSETSARERECOGNISEDTOTHEEXTENTTHATITISPROBABLE
INTHISARRANGEMENTTHE#OMPANYRECOGNIZETHEREVENUE THAT TAXABLE PROlT WILL BE AVAILABLE AGAINST WHICH
ONNETBASIS THEDEDUCTIBLETEMPORARYDIFFERENCESANDTHECARRY
FORWARDOFUNUSEDTAXCREDITSANDUNUSEDTAXLOSSES
10. EXCISE DUTY CANBEUTILISEDEXCEPT
 %XCISEDUTYISACCOUNTEDONTHEBASISOFBOTHPAYMENTS A  WHEN THE DEFERRED TAX ASSET RELATING TO THE
MADEINRESPECTOFGOODSCLEAREDASALSOPROVISIONMADE DEDUCTIBLE TEMPORARY DIFFERENCE ARISES FROM
FORGOODSLYINGINSTOCK6ALUEOFSTOCKINCLUDESEXCISE THE INITIAL RECOGNITION OF AN ASSET OR LIABILITY IN A
DUTYPAYABLEPAIDONlNISHEDGOODSWHEREVERAPPLICABLE TRANSACTIONTHATISNOTABUSINESSCOMBINATIONAND
AT THE TIME OF THE TRANSACTION AFFECTS NEITHER THE
11. TAXES ON INCOME
ACCOUNTINGPROlTNORTAXABLEPROlTORLOSS
11.1 Current Income Tax
B  )N RESPECT OF DEDUCTIBLE TEMPORARY DIFFERENCES
 4HETAXRATESANDTAXLAWSUSEDTOCOMPUTETHECURRENT ASSOCIATED WITH INVESTMENTS IN SUBSIDIARIES
TAXAMOUNTARETHOSETHATAREENACTEDORSUBSTANTIVELY ASSOCIATESANDINTERESTSINJOINTVENTURESDEFERRED
ENACTEDATTHEREPORTINGDATEINTHECOUNTRIESWHERETHE
'ROUPOPERATESANDGENERATESTAXABLEINCOME
 #URRENTINCOMETAXASSETSANDLIABILITIESAREMEASUREDAT
THEAMOUNTEXPECTEDTOBERECOVEREDFROMORPAIDTOTHE
TAXATIONAUTHORITIES
 #URRENTINCOMETAXRELATINGTOITEMSRECOGNISEDOUTSIDE
PROlTORLOSSISRECOGNISEDOUTSIDEPROlTORLOSSEITHERIN
OTHERCOMPREHENSIVEINCOMEORINEQUITY -ANAGEMENT
PERIODICALLYEVALUATESPOSITIONSTAKENINTHETAXRETURNS
WITH RESPECT TO SITUATIONS IN WHICH APPLICABLE TAX
REGULATIONSARESUBJECTTOINTERPRETATIONANDESTABLISHES
PROVISIONSWHEREAPPROPRIATE
11.2 Deferred Tax
ASSESSEDATEACHREPORTINGDATEANDARE
$EFERRED TAX IS PROVIDED USING THE "ALANCE 3HEET
METHOD ON TEMPORARY DIFFERENCES BETWEEN THE TAX
BASES OF ASSETS AND LIABILITIES AND THEIR CARRYING
TAXASSETSARERECOGNISEDONLYTOTHEEXTENTTHATITIS
PROBABLETHATTHETEMPORARYDIFFERENCESWILLREVERSE
INTHEFORESEEABLEFUTUREANDTAXABLEPROlTWILLBE
AVAILABLE AGAINST WHICH THE TEMPORARY DIFFERENCES
CANBEUTILIZED
 $EFERRED TAX ASSETS AND LIABILITIES ARE MEASURED
BASED ON TAX RATES AND TAX LAWS  THAT HAVE BEEN
enacted or substantively enacted at the reporting
DATE
4HECARRYINGAMOUNTOFDEFERREDTAXASSETSISREVIEWED
ATEACHREPORTINGDATEANDREDUCEDTOTHEEXTENTTHAT
ITISNOLONGERPROBABLETHATSUFlCIENTTAXABLEPROlT
WILL BE AVAILABLE TO ALLOW ALL OR PART OF THE DEFERRED
TAX ASSET TO BE UTILISED 5NRECOGNISED DEFERRED TAX
ASSETSARERE
RECOGNISEDTOTHEEXTENTTHATITHASBECOMEPROBABLE
THATFUTURETAXABLEPROlTSWILLALLOWTHEDEFERREDTAX
ASSETTOBERECOVERED
 60th Annual Report 2018-19 309

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

About IndianOil
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
• 4HEDATEOFTHEPLANAMENDMENTORCURTAILMENTAND
A  4HE 'ROUPS CONTRIBUTION TO THE 0ROVIDENT &UND

Directors and others

IS REMITTED TO SEPARATE TRUSTS ESTABLISHED FOR THIS • 4HE DATE THAT THE 'ROUP RECOGNISES RELATED
PURPOSEBASEDONAlXEDPERCENTAGEOFTHEELIGIBLE restructuring costs
EMPLOYEES SALARY AND CHARGED TO THE 3TATEMENT

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
MINIMUMRATEOFRETURNISMADEGOODBYTHE'ROUP
NETDElNEDBENElTOBLIGATIONASANEXPENSEINTHE
AND CHARGED TO THE 3TATEMENT OF 0ROlT AND ,OSS
3TATEMENTOF0ROlTAND,OSS
#7)0
• 3ERVICECOSTCOMPRISINGCURRENTSERVICECOSTSPAST

Directors’
B  4HE 'ROUP OPERATES DElNED BENElT PLANS FOR

Report
SERVICECOSTSGAINSANDLOSSESONCURTAILMENTSAND
'RATUITY0OST 2ETIREMENT -EDICAL "ENElTS
NON ROUTINESETTLEMENTSAND
2ESETTLEMENT &ELICITATION 3CHEME %X GRATIA AND

Discussion & Analysis

!/$ PENSION FUND 4HE COST OF PROVIDING SUCH • .ETINTERESTEXPENSEORINCOME
DElNEDBENElTSISDETERMINEDUSINGTHEPROJECTED
13. GRANTS

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  )NCASEOFGRANTSRELATINGTODEPRECIABLEASSETSTHECOST
OFTHEASSETISSHOWNATGROSSVALUEANDGRANTTHEREON

Business
ACTUARIALVALUATIONMADEATTHEENDOFTHEYEAR/UT
OFTHESEOBLIGATIONSLEAVEENCASHMENTOBLIGATIONS
ARE FUNDED THROUGH QUALIFYING INSURANCE POLICIES
MADEWITHINSURANCECOMPANIESCORPORATION
D  4HE 'ROUP ALSO OPERATES A DElNED CONTRIBUTION
13.3 Grant related to Income (Revenue Grants)
SCHEMEFOR0ENSIONBENElTSFORITSEMPLOYEESAND
THECONTRIBUTIONISREMITTEDTOASEPARATE4RUST
4ERMINATION"ENElTS
 0AYMENTS MADE UNDER 6OLUNTARY 2ETIREMENT 3CHEME
ARE CHARGED TO THE 3TATEMENT OF 0ROlT AND ,OSS ON
INCURRENCE
ISTREATEDAS$EFERRED)NCOMEWHICHARERECOGNIZEDAS
INCOME IN THE 3TATEMENT OF 0ROlT AND ,OSS OVER THE
PERIOD AND IN THE PROPORTION IN WHICH DEPRECIATION IS Report on Corporate
CHARGED
Governance
 2EVENUE GRANTS ARE RECOGNISED IN THE 3TATEMENT OF
0ROlTAND,OSSONASYSTEMATICBASISOVERTHEPERIODS
INWHICHTHEENTITYRECOGNISESASEXPENSESTHERELATED
financial
COSTSFORWHICHTHEGRANTSAREINTENDEDTOCOMPENSATE
 3UBSIDYANDBUDGETARYSUPPORTTOWARDSUNDERRECOVERIES
Consolidated
Statements
statements
ARE RECKONED IN h2EVENUE FROM /PERATIONSv AS PER
Financial
 310 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
SCHEMES NOTIlED BY 'OVERNMENT FROM TIME TO TIME  )FTHEPROJECTISPROVEDTOBEVIABLETHENALLCOSTSRELATING
SUBJECTTOlNALADJUSTMENTSWHEREVERAPPLICABLE TODRILLINGOF%XPLORATORY7ELLSSHALLBECONTINUEDTOBE
PRESENTEDASh)NTANGIBLE!SSETSUNDER$EVELOPMENTv
 4HE 'ROUP HAS TREATED WAIVER OF DUTY UNDER %0#'
3CHEME AS REVENUE GRANT AS THE CONDITION OF MEETING 14.3 Development Stage:
THEEXPORTOBLIGATIONSISAPRIMARYCONDITIONOFAVAILING
 !CQUISITIONCOSTRELATINGTOPROJECTSUNDERDEVELOPMENT
THE GRANT AS PER THE %0#' 3CHEME 4HE ABOVE GRANT
STAGEAREPRESENTEDASh#APITALWORK
IN
PROGRESSv
is set up by recording the assets at gross value and
CORRESPONDINGGRANTAMOUNTASDEFERREDINCOME3UCH  7HEN A WELL IS READY TO COMMENCE COMMERCIAL
GRANT IS RECOGNISED IN h/THER /PERATING 2EVENUESv IN
PROPORTIONOFEXPORTOBLIGATIONSACTUALLYFULlLLEDDURING
THEACCOUNTINGPERIOD
IN
PROGRESS)NTANGIBLE!SSETSUNDER$EVELOPMENTv
 2EVENUE GRANTS ARE GENERALLY RECORDED UNDER h/THER
/PERATING2EVENUESvEXCEPTSOMEGRANTSWHICHMAINLY
PRODUCTION THE CAPITALISED COSTS CORRESPONDING TO
PROVED DEVELOPED OIL AND GAS RESERVES IS RECLASSIlED
AS @#OMPLETED WELLS0RODUCING WELLS FROM h#APITAL
WORK
TO THE GROSS BLOCK OF ASSETS %XAMPLES OF /IL AND 'AS
ASSETS THAT MIGHT BE CLASSIlED AS 4ANGIBLE !SSETS
INCLUDESNORTHEASTEXCISEDUTYANDENTRYTAXEXEMPTION
INCLUDE DEVELOPMENT DRILLING COST PIPING AND PUMPS
WHICHARENETTEDOFFWITHTHERELATEDEXPENSE
ANDPRODUCINGWELLS
13.4 When loans or similar assistance are provided by
14.4 Production Phase
GOVERNMENTS OR RELATED INSTITUTIONS WITH AN INTEREST
RATE BELOW THE CURRENT APPLICABLE MARKET RATE OR .),  0RODUCTION COST INCLUDE PRE
WELL HEAD  AND POST
WELL
INTEREST RATE THE EFFECT OF THIS FAVOURABLE INTEREST IS
REGARDEDASAGOVERNMENTGRANT4HELOANORASSISTANCE
IS INITIALLY RECOGNISED AND MEASURED AT FAIR VALUE AND
THE GOVERNMENT GRANT IS MEASURED AS THE DIFFERENCE
BETWEEN THE INITIAL CARRYING VALUE OF THE LOAN AND
THE PROCEEDS RECEIVED 4HE LOAN IS SUBSEQUENTLY
measured as per the accounting policy applicable to
lNANCIALLIABILITIES#LASSIlCATIONOFTHEGRANTISMADE
HEAD EXPENSES INCLUDING DEPRECIATION AND APPLICABLE
OPERATINGCOSTSOFSUPPORTEQUIPMENTANDFACILITIESARE
EXPENSEDOFF
 $EPLETION IS CALCULATED USING THE 5NIT OF 0RODUCTION
METHODBASEDUPONPROVEDANDDEVELOPEDRESERVES
14.5 Abandonment Phase
CONSIDERING THE TERMS AND CONDITION OF THE GRANT IE
WHETHERGRANTSRELATESTOASSETSOROTHERWISE
14. OIL & GAS EXPLORATION ACTIVITIES
14.1 Pre-acquisition Cost:
 %XPENDITURE INCURRED BEFORE OBTAINING THE RIGHTS  TO
 )NCASEOFDEVELOPMENTPRODUCTIONPHASEABANDONMENT
DECOMMISSIONING AMOUNT IS RECOGNIZED AT THE PRESENT
VALUEOFTHEESTIMATEDFUTUREEXPENDITURE!NYCHANGE
INTHEPRESENTVALUEOFTHEESTIMATEDDECOMMISSIONING
EXPENDITURE OTHER THAN THE UNWINDING OF DISCOUNT
IS ADJUSTED TO THE DECOMMISSIONING PROVISION AND
THE CARRYING VALUE OF THE CORRESPONDING ASSET 4HE
EXPLOREDEVELOPANDPRODUCEOILANDGASAREEXPENSED
ASANDWHENINCURRED
14.2 Exploration Stage:
 !CQUISITION COST RELATING TO PROJECTS UNDER EXPLORATION
ARE INITIALLY ACCOUNTED AS h)NTANGIBLE !SSETS UNDER
CURRENTCLASSIlCATION
$EVELOPMENTv4HEEXPENSESONOILANDGASASSETSTHAT
ISCLASSIlEDASINTANGIBLEINCLUDE
ACQUIREDRIGHTSTOEXPLORE
EXPLORATORYDRILLINGCOSTS
 #OSTOF3URVEYANDPROSPECTINGACTIVITIESCONDUCTEDIN
THE SEARCH OF OIL AND GAS ARE EXPENSED AS EXPLORATION
UNWINDING OF DISCOUNT ON PROVISION IS CHARGED IN THE
3TATEMENTOF0ROlTAND,OSSASlNANCECOSTS
15. CURRENT VERSUS NON-CURRENT CLASSIFICATION
15.14HE'ROUPPRESENTSASSETSANDLIABILITIESINTHE"ALANCE
3HEETBASEDONCURRENTNON
15.2 !NASSETISTREATEDASCURRENTWHENITIS
• %XPECTED TO BE REALISED OR INTENDED TO BE SOLD OR
consumed in normal operating cycle
• (ELDPRIMARILYFORTHEPURPOSEOFTRADING
• %XPECTEDTOBEREALISEDWITHINTWELVEMONTHSAFTER
COSTINTHEYEARINWHICHTHESEAREINCURRED THEREPORTINGPERIODOR

 )F THE PROJECT IS NOT VIABLE BASED UPON TECHNICAL • #ASH OR #ASH %QUIVALENTS UNLESS RESTRICTED FROM
FEASIBILITYANDCOMMERCIALVIABILITYSTUDYTHENALLCOSTS 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

About IndianOil
THEREPORTINGPERIODOR  !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
PLUSINTHECASEOF&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

Directors and others

CONTINUING USE !CTIONS REQUIRED TO COMPLETE THE Subsequent measurement
SALESHOULDINDICATETHATITISUNLIKELYTHATSIGNIlCANT
 &OR PURPOSES OF SUBSEQUENT MEASUREMENT &INANCIAL
CHANGESTOTHESALEWILLBEMADEORTHATTHEDECISIONTO
!SSETSARECLASSIlEDINFOURCATEGORIES

SELLWILLBEWITHDRAWN-ANAGEMENTMUSTBECOMMITTED
TOTHE SALEEXPECTEDWITHINONEYEARFROM THE DATE OF
CLASSIlCATION
Board of
• &INANCIAL!SSETSATAMORTISEDCOST
• $EBT )NSTRUMENTS AT FAIR VALUE THROUGH /THER
16.2 &ORTHESEPURPOSESSALETRANSACTIONSINCLUDEEXCHANGES #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
SALEINITSPRESENTCONDITIONSUBJECTONLYTOTERMSTHAT THROUGHPROlTORLOSS&640,

Discussion & Analysis

AREUSUALANDCUSTOMARYFORSALESORDISPOSALGROUPS 
ITSSALEISHIGHLYPROBABLEANDITWILLGENUINELYBESOLD Financial Assets at Amortised Cost

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 CONTRACTUALCASHmOWSAND
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  !FTERINITIALMEASUREMENTSUCH&INANCIAL!SSETS
ACOMPLETEDSALEWITHINONEYEARFROMTHEDATEOF are subsequently measured at amortised cost
Governance

CLASSIlCATIONAND USINGTHEEFFECTIVEINTERE ST RATE %)2 

METHOD !MORTISED COST IS CALCULATED BY TAKING
• Actions required to complete the plan indicate that into account any discount or premium on
IT IS UNLIKELY THAT SIGNIlCANT CHANGES TO THE PLAN ACQUISITIONANDFEESORCOSTSTHATAREANINTEGRAL
financial

WILLBEMADEORTHATTHEPLANWILLBEWITHDRAWN PARTOFTHE%)24HE%)2AMORTISATIONISINCLUDED
16.3.ON CURRENT !SSETS HELD FOR SALE AND DISPOSAL GROUPS INlNANCEINCOMEINTHEPROlTORLOSS4HELOSSES
Consolidated

ARISING FROM IMPAIRMENT ARE RECOGNISED IN THE

Statements
statements

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Debt Instrument at FVTOCI Derecognition
 !@$EBT)NSTRUMENTISCLASSIlEDASATTHE&64/#)IF
BOTHOFTHEFOLLOWINGCRITERIAAREMET
A  4HEOBJECTIVEOFTHEBUSINESSMODELISACHIEVED
BOTH BY COLLECTING CONTRACTUAL CASH mOWS AND
 ! lNANCIAL ASSET OR WHERE APPLICABLE A PART OF A
lNANCIALASSETORPARTOFAGROUPOFSIMILARlNANCIAL
ASSETS  IS PRIMARILY DERECOGNISEDIE REMOVED FROM
THE"ALANCE3HEET WHEN
SELLINGTHE&INANCIAL!SSETSAND • 4HERIGHTSTORECEIVECASHmOWSFROMTHEASSET
HAVEEXPIREDOR
B  4HE ASSETS CONTRACTUAL CASH mOWS REPRESENT
SOLELYPAYMENTSOFPRINCIPALANDINTEREST300)  • 4HE 'ROUP HAS TRANSFERRED ITS RIGHTS TO RECEIVE
CASH mOWS FROM THE ASSET OR HAS ASSUMED AN
 $EBT )NSTRUMENTS INCLUDED WITHIN THE &64/#)
OBLIGATIONTOPAYTHERECEIVEDCASHmOWSINFULL
CATEGORY ARE MEASURED INITIALLY AS WELL AS AT EACH
WITHOUTMATERIALDELAYTOATHIRDPARTYUNDERA
REPORTING DATE AT FAIR VALUE &AIR 6ALUE MOVEMENTS
@PASS
THROUGH ARRANGEMENTʡ AND EITHER A  THE
ARE RECOGNIZED IN THE /THER #OMPREHENSIVE )NCOME
'ROUPHASTRANSFERREDSUBSTANTIALLYALLTHERISKS
/#) (OWEVERTHE'ROUPRECOGNIZESINTERESTINCOME
ANDREWARDSOFTHEASSETORB THE'ROUPHAS
IMPAIRMENTLOSSESREVERSALSANDFOREIGNEXCHANGE
NEITHER TRANSFERRED NOR RETAINED SUBSTANTIALLY
GAINORLOSSINTHE3TATEMENTOF0ROlTAND,OSS/N
ALLTHERISKSANDREWARDSOFTHEASSETSBUTHAS
DERECOGNITION OF THE ASSET CUMULATIVE GAIN OR LOSS
PREVIOUSLYRECOGNISEDIN/#)ISRECLASSIlEDFROMTHE
EQUITY TO THE 3TATEMENT OF 0ROlT AND ,OSS )NTEREST
EARNED WHILST HOLDING &64/#) $EBT )NSTRUMENT IS
REPORTEDASINTERESTINCOMEUSINGTHE%)2METHOD
TRANSFERREDCONTROLOFTHEASSETS
 7HEN THE 'ROUP HAS TRANSFERRED ITS RIGHTS TO
RECEIVECASHmOWSFROMANASSETORHASENTERED
INTO A PASS
THROUGH ARRANGEMENT IT EVALUATES
IF AND TO WHAT EXTENT IT HAS RETAINED THE RISKS
 Equity Instrument at FVTOCI (Other than subsidiaries,
ANDREWARDSOFOWNERSHIP7HENITHASNEITHER
JVs and associates)
TRANSFERREDNORRETAINEDSUBSTANTIALLYALLOFTHE
 !LL EQUITY INVESTMENTS IN SCOPE OF )ND !3  ARE RISKS AND REWARDS OF THE ASSET NOR TRANSFERRED
MEASURED AT FAIR VALUE 4HE 'ROUP HAS MADE AN CONTROL OF THE ASSET THE 'ROUP CONTINUES TO
irrevocable election to present subsequent changes RECOGNISE THE TRANSFERRED ASSET TO THE EXTENT
INTHEFAIRVALUEINOTHERCOMPREHENSIVEINCOME4HE OF THE 'ROUPS CONTINUING INVOLVEMENT )N THAT
CLASSIlCATIONISMADEONINITIALRECOGNITIONTRANSITION CASE THE 'ROUP ALSO RECOGNISES AN ASSOCIATED
ANDISIRREVOCABLE LIABILITY4HETRANSFERREDASSETANDTHEASSOCIATED
LIABILITY ARE MEASURED ON A BASIS THAT REmECTS
 4HERE IS NO RECYCLING OF THE AMOUNTS FROM /#) TO THE RIGHTS AND OBLIGATIONS THAT THE 'ROUP HAS
THE 3TATEMENT OF 0ROlT AND ,OSS EVEN ON SALE OF RETAINED
INVESTMENT
 #ONTINUINGINVOLVEMENTTHATTAKESTHEFORMOFA
 $IVIDEND INCOME IS RECOGNIZED IN THE 3TATEMENT OF GUARANTEEOVERTHETRANSFERREDASSETISMEASURED
0ROlT AND ,OSS WHEN THE 'ROUPS RIGHT TO RECEIVE AT THE LOWER OF THE ORIGINAL CARRYING AMOUNT
DIVIDENDISESTABLISHED OF THE ASSET AND THE MAXIMUM AMOUNT OF
Debt Instruments and Derivatives at FVTPL CONSIDERATIONTHATTHE'ROUPCOULDBEREQUIRED
TOREPAY
 &640,ISARESIDUALCATEGORYFOR$EBT)NSTRUMENT!NY
DEBTINSTRUMENTWHICHDOESNOTMEETTHECRITERIAFOR Impairment of Financial Assets
CATEGORIZATIONASATAMORTIZEDCOSTORAS&64/#)IS  )N ACCORDANCE WITH )ND !3  THE 'ROUP APPLIES
CLASSIlEDASAT&640, EXPECTED CREDIT LOSS %#,  MODEL FOR MEASUREMENT
 4HIS CATEGORY ALSO INCLUDES DERIVATIVE lNANCIAL ANDRECOGNITIONOFIMPAIRMENTLOSSONTHEFOLLOWING
INSTRUMENTS ENTERED INTO BY THE 'ROUP THAT ARE &INANCIAL!SSETSANDCREDITRISKEXPOSURE
not designated as hedging instruments in hedge A  &INANCIAL!SSETSTHATAREDEBTINSTRUMENTSAND
RELATIONSHIPSASDElNEDBY)ND!3 AREMEASUREDATAMORTISEDCOSTEGLOANSDEBT
 $EBTINSTRUMENTSINCLUDEDWITHINTHE&640,CATEGORY
AREMEASUREDATFAIRVALUEWITHALLCHANGESRECOGNIZED
INTHE3TATEMENTOF0ROlTAND,OSS)NTERESTINCOME
on such instruments has been presented under
INTERESTINCOME
SECURITIESDEPOSITSTRADERECEIVABLESANDBANK
balance
B  ,EASE2ECEIVABLESUNDER)ND!3
 60th Annual Report 2018-19 313

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

About IndianOil
17.2 Financial Liabilities
BASEDONLIFETIME%#,SATEACHREPORTINGDATERIGHT
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
!SSETSANDRISKEXPOSURETHE'ROUPDETERMINESTHAT
AMORTISEDCOSTASAPPROPRIATE

Description of
WHETHERTHEREHASBEENASIGNIlCANTINCREASEINTHE
CREDITRISKSINCEINITIALRECOGNITION)FCREDITRISKHAS  !LL lNANCIAL ,IABILITIES ARE RECOGNISED INITIALLY AT

Capitals
NOT INCREASED SIGNIlCANTLY  MONTHS %#, IS USED FAIRVALUEANDINTHECASEOFLIABILITIESMEASUREDAT
TOPROVIDEFORIMPAIRMENTLOSS(OWEVERIFCREDITRISK AMORTISEDCOSTNETOFDIRECTLYATTRIBUTABLETRANSACTION
HASINCREASEDSIGNIlCANTLYLIFETIME%#,ISUSED)FIN COSTS

Directors and others

ASUBSEQUENTPERIODCREDITQUALITYOFTHEINSTRUMENT  4HE 'ROUPS &INANCIAL ,IABILITIES INCLUDE TRADE AND
IMPROVES SUCH THAT THERE IS NO LONGER A SIGNIlCANT OTHER PAYABLES LOANS AND BORROWINGS AND DERIVATIVE
INCREASEINCREDITRISKSINCEINITIALRECOGNITIONTHEN lNANCIALINSTRUMENTS

Board of
the entity reverts to recognising impairment loss
Subsequent measurement
ALLOWANCEBASEDON MONTHS%#,
 4HEMEASUREMENTOFlNANCIALLIABILITIESDEPENDSON
 ,IFETIME%#,ARETHEEXPECTEDCREDITLOSSESRESULTING
FROMALLPOSSIBLEDEFAULTEVENTSOVERTHEEXPECTEDLIFE THEIRCLASSIlCATIONASDESCRIBEDBELOW
OF A lNANCIAL INSTRUMENT 4HE  MONTHS %#, IS A ! &INANCIAL,IABILITIESATFAIRVALUETHROUGHPROlTOR

Directors’
PORTIONOFTHELIFETIME%#,WHICHRESULTSFROMDEFAULT loss

Report
EVENTSTHATAREPOSSIBLEWITHINMONTHSAFTERTHE
REPORTINGDATE  &INANCIAL,IABILITIESATFAIRVALUETHROUGHPROlTOR
LOSSINCLUDElNANCIALLIABILITIESHELDFORTRADING

Discussion & Analysis

 !SAPRACTICALEXPEDIENTTHE'ROUPUSESAPROVISION
AND lNANCIAL LIABILITIES DESIGNATED UPON INITIAL
MATRIX TO DETERMINE IMPAIRMENT LOSS ALLOWANCE ON
RECOGNITIONASATFAIRVALUETHROUGHPROlTORLOSS

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

measured at amortised cost are determined

IN THE "ALANCE 3HEET 4HE ALLOWANCE REDUCES BASEDONTHEEFFECTIVEINTERESTMETHOD'AINSAND
THE NET CARRYING AMOUNT 5NTIL THE ASSET MEETS
Consolidated

LOSSESARERECOGNISEDINTHE3TATEMENTOF0ROlT
Statements
statements

WRITE OFF CRITERIA THE 'ROUP DOES NOT REDUCE

Financial

AND,OSSWHENTHELIABILITIESAREDERECOGNISEDAS
IMPAIRMENT ALLOWANCE FROM THE GROSS CARRYING WELLASTHROUGHTHE%)2AMORTISATIONPROCESS
AMOUNT
 314 Indian Oil Corporation Limited
NOTES TO FINANCIAL STATEMENTS
NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
 !MORTISED COST IS CALCULATED BY TAKING INTO
account any discount or premium on acquisition
ANDFEESORCOSTSTHATAREANINTEGRALPARTOFTHE
MEASURED AT FAIR VALUE
%)24HE%)2AMORTISATIONISINCLUDEDASlNANCE
COSTSINTHE3TATEMENTOF0ROlTAND,OSS

Derecognition
 !&INANCIAL,IABILITYISDERECOGNISEDWHENTHEOBLIGATION
UNDERTHELIABILITYISDISCHARGEDORCANCELLEDOREXPIRES
7HENANEXISTINGlNANCIALLIABILITYISREPLACEDBYANOTHER
2nd Integrated Annual Report
INSTRUMENTS ARE INITIALLY RECOGNISED AT FAIR VALUE ON
THE DATE ON WHICH A DERIVATIVE CONTRACT IS ENTERED
INTO AND ARE SUBSEQUENTLY RE
4HE ACCOUNTING FOR SUBSEQUENT CHANGES IN FAIR VALUE
OF DERIVATIVES DEPENDS ON THE DESIGNATION OR NON
DESIGNATION OF DERIVATIVE AS HEDGING INSTRUMENTS
$ERIVATIVES ARE CARRIED AS &INANCIAL !SSETS WHEN THE
FAIR VALUE IS POSITIVE AND AS lNANCIAL LIABILITIES WHEN
THEFAIRVALUEISNEGATIVE
Derivative that are designated as Hedge Instrument
FROMTHESAMELENDERONSUBSTANTIALLYDIFFERENTTERMS
OR THE TERMS OF AN EXISTING LIABILITY ARE SUBSTANTIALLY  4HE #OMPANY DESIGNATES CERTAIN FOREIGN EXCHANGE
MODIlED SUCH AN EXCHANGE OR MODIlCATION IS TREATED
AS THE DERECOGNITION OF THE ORIGINAL LIABILITY AND THE
RECOGNITION OF A NEW LIABILITY 4HE DIFFERENCE IN THE
respective carrying amounts is recognised in the
3TATEMENTOF0ROlTAND,OSS
17.3 Embedded derivatives
 )FTHEHYBRIDCONTRACTCONTAINSAHOSTTHATISAlNANCIAL
FORWARD CONTRACTS FOR HEDGING FOREIGN CURRENCY RISK
OF RECOGNIZED FOREIGN CURRENCY LOANS AND LIABILITIES
4HE#OMPANYALSOUNDERTAKESCOMMODITYFORWARDSAS
HEDGEINSTRUMENTSFORCOMMODITYPRICERISKSMARGIN 
FOR HIGHLY PROBABLE FORECAST SALE TRANSACTIONS 4HE
#OMPANY GENERALLY DESIGNATES THE WHOLE FORWARD
CONTRACT AS HEDGING INSTRUMENT 4HESE HEDGES ARE
ACCOUNTED FOR AS CASH mOW HEDGES 4HESE HEDGING
ASSETWITHINTHESCOPEOF)ND!3THE'ROUPDOES instruments are as per the policies approved by the
NOT SEPARATE EMBEDDED DERIVATIVES 2ATHER IT APPLIES "OARDOF$IRECTORS
THECLASSIlCATIONREQUIREMENTSCONTAINEDIN)ND!3
 !TTHEINCEPTIONOFAHEDGERELATIONSHIPTHE#OMPANY
TOTHEENTIREHYBRIDCONTRACT$ERIVATIVESEMBEDDEDIN
FORMALLY DESIGNATES AND DOCUMENTS THE HEDGE
ALL OTHER HOST CONTRACTS ARE ACCOUNTED FOR AS SEPARATE
RELATIONSHIPTOWHICHTHE#OMPANYWISHESTOAPPLYHEDGE
DERIVATIVESANDRECORDEDATFAIRVALUEIFTHEIRECONOMIC
ACCOUNTING AND THE RISK MANAGEMENT OBJECTIVE AND
CHARACTERISTICS AND RISKS ARE NOT CLOSELY RELATED TO
STRATEGYFORUNDERTAKINGTHEHEDGE4HEDOCUMENTATION
THOSEOFTHEHOSTCONTRACTSANDTHEHOSTCONTRACTSARE
INCLUDES THE #OMPANYS RISK MANAGEMENT OBJECTIVE
NOTHELDFORTRADINGORDESIGNATEDATFAIRVALUETHOUGH
AND STRATEGY FOR UNDERTAKING HEDGE THE HEDGING
PROlTORLOSS4HESEEMBEDDEDDERIVATIVESAREMEASURED
ECONOMICRELATIONSHIPTHEHEDGEDITEMORTRANSACTION
AT FAIR VALUE WITH CHANGES IN FAIR VALUE RECOGNISED IN
THE NATURE OF THE RISK BEING HEDGED HEDGE RATIO AND
THE 3TATEMENT OF 0ROlT AND ,OSS UNLESS DESIGNATED
AS EFFECTIVE HEDGING INSTRUMENTS 2EASSESSMENT ONLY
OCCURS IF THERE IS EITHER A CHANGE IN THE TERMS OF THE
CONTRACTTHATSIGNIlCANTLYMODIlESTHECASHmOWSTHAT
WOULD OTHERWISE BE REQUIRED OR A RECLASSIlCATION OF A
lNANCIAL ASSET OUT OF THE FAIR VALUE THROUGH PROlT OR
LOSS
17.4 Offsetting of Financial Instruments
 &INANCIAL !SSETS AND &INANCIAL ,IABILITIES ARE OFFSET
and the net amount is reported in the Balance Sheet
IF THERE IS A CURRENTLY ENFORCEABLE LEGAL RIGHT TO OFFSET
the recognised amounts and there is an intention to
HOWTHEENTITYWILLASSESSTHEEFFECTIVENESSOFCHANGES
INTHEHEDGINGINSTRUMENTSFAIRVALUEINOFFSETTINGTHE
EXPOSURETOCHANGESINTHEHEDGEDITEMSFAIRVALUEOR
CASHmOWSATTRIBUTABLETOTHEHEDGEDRISK
 3UCH HEDGES ARE EXPECTED TO BE HIGHLY EFFECTIVE IN
ACHIEVINGOFFSETTINGCHANGESINFAIRVALUEORCASHmOWS
and are assessed on an ongoing basis to determine
THAT THE HEDGE IS ACTUALLY HAVE BEEN HIGHLY EFFECTIVE
THROUGHOUTTHElNANCIALREPORTINGPERIODSFORWHICHIT
WASDESIGNATED
 4HE EFFECTIVE PORTION OF CHANGES IN THE FAIR VALUE OF
DERIVATIVESTHATAREDESIGNATEDANDQUALIFYASCASHmOW
SETTLEONANETBASISTOREALISETHEASSETSANDSETTLETHE
LIABILITIESSIMULTANEOUSLY
17.5 Derivative Instrument- Initial recognition/subsequent
measurement
HEDGESISRECOGNIZEDIN/THER#OMPREHENSIVE)NCOME
ANDACCUMULATEDUNDERTHEHEADING#ASH&LOW(EDGE
2ESERVEWITHIN%QUITY4HEGAINORLOSSRELATINGTOTHE
INEFFECTIVE PORTION IS RECOGNIZED IMMEDIATELY IN THE
3TATEMENTOF0ROlTAND,OSSANDINCLUDEDINTHE/THER
 4HE'ROUPUSESDERIVATIVElNANCIALINSTRUMENTSSUCH )NCOME OR /THER %XPENSES AS 'AIN ON $ERIVATIVES OR
ASFORWARDCURRENCYCONTRACTSINTERESTRATESWAPSAND ,OSSON$ERIVATIVESRESPECTIVELY
FORWARD COMMODITY CONTRACTS TO HEDGE ITS FOREIGN
CURRENCY RISKS INTEREST RATE RISKS AND COMMODITY
PRICE RISKS RESPECTIVELY 3UCH DERIVATIVE lNANCIAL
 60th Annual Report 2018-19 315

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
MARKETINTHEMOSTADVANTAGEOUSMARKETFORTHEASSET
TRANSACTION SUBSEQUENTLY RESULTSIN THE RECOGNITION OF

About IndianOil
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
INSTRUMENTEXPIRESORISSOLDTERMINATEDORNOLONGER
QUALIlESFORHEDGEACCOUNTING
lNANCIALASSETTAKES
Derivate that are not designated as hedge instrument
 4HE#OMPANYENTERSINTOCERTAINDERIVATIVECONTRACTSTO
HEDGERISKSWHICHARENOTDESIGNATEDASHEDGES3UCH
CONTRACTS ARE ACCOUNTED FOR AT FAIR VALUE THROUGH THE
3TATEMENTOF0ROlTAND,OSSANDAREINCLUDEDINTHE
/THER)NCOMEOR/THER%XPENSESAS'AINON$ERIVATIVES
Description of
20.4!FAIRVALUEMEASUREMENTOFANON
Capitals
INTOACCOUNTAMARKETPARTICIPANTSABILITYTOGENERATE
ECONOMICBENElTSBYUSINGTHEASSETINITSHIGHESTAND
BESTUSEORBYSELLINGITTOANOTHERMARKETPARTICIPANT
Directors and others
THATWOULDUSETHEASSETINITSHIGHESTANDBESTUSE
20.54HE'ROUPUSESVALUATIONTECHNIQUESTHATAREAPPROPRIATE
INTHECIRCUMSTANCESANDFORWHICHSUFlCIENTDATAARE
Board of
OR,OSSON$ERIVATIVESRESPECTIVELY
17.6 Commodity Contracts
Commodity contracts that are entered into and continue
TOBEHELDFORTHEPURPOSEOFTHERECEIPTORDELIVERYOF
A NON
AVAILABLETOMEASUREFAIRVALUEMAXIMISINGTHEUSEOF
RELEVANT OBSERVABLE INPUTS AND MINIMISING THE USE OF
UNOBSERVABLEINPUTS
20.6!LLASSETSANDLIABILITIESFORWHICHFAIRVALUEISMEASURED
ORDISCLOSEDINTHElNANCIALSTATEMENTSARECATEGORISED
Directors’
lNANCIAL ITEM IN ACCORDANCE WITH THE 'ROUPS WITHIN THE FAIR VALUE HIERARCHY DESCRIBED AS FOLLOWS

Report
EXPECTEDPURCHASESALEORUSAGEREQUIREMENTSAREHELD BASEDONTHELOWESTLEVELINPUTTHATISSIGNIlCANTTOTHE
ATCOST FAIRVALUEMEASUREMENTASAWHOLE

Discussion & Analysis

18. CASH AND CASH EQUIVALENTS  ,EVELˆ1UOTEDUNADJUSTED MARKETPRICESINACTIVE
MARKETSFORIDENTICALASSETSORLIABILITIES

Management’s
Cash and Cash Equivalent in the Balance Sheet comprise
CASHATBANKSANDONHANDANDSHORT TERMDEPOSITSWITH  ,EVEL  ˆ 6ALUATION TECHNIQUES FOR WHICH THE
ANORIGINALMATURITYOFTHREEMONTHSORLESSWHICHARE LOWEST LEVEL INPUT THAT IS SIGNIlCANT TO THE FAIR VALUE
SUBJECTTOANINSIGNIlCANTRISKOFCHANGESINVALUE measurement is directly or indirectly observable

Responsibility Report
19. TREASURY SHARES  ,EVEL  ˆ 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
 /WN EQUITY INSTRUMENTS THAT ARE REACQUIRED TREASURY
ASSESSING CATEGORISATION
SHARES ARERECOGNISEDATCOSTANDDEDUCTEDFROMEQUITY
.OGAINORLOSSISRECOGNISEDINTHE3TATEMENTOF0ROlT
lNANCIAL STATEMENTS ON A RECURRING BASIS THE 'ROUP
DETERMINES WHETHER TRANSFERS HAVE OCCURRED BETWEEN
Report on Corporate
LEVELS IN THE HIERARCHY BY RE
BASEDONTHELOWESTLEVELINPUTTHATISSIGNIlCANTTOTHE
Governance
FAIRVALUEMEASUREMENTASAWHOLE ATTHEENDOFEACH
AND,OSSONTHEPURCHASESALEISSUEORCANCELLATIONOF
REPORTINGPERIOD
THE'ROUPSOWNEQUITYINSTRUMENTS
 )NCASEOF,EVELVALUATIONSEXTERNALVALUERSAREALSO
20. FAIR VALUE MEASUREMENT
INVOLVED IN SOME CASES FOR VALUATION OF ASSETS AND
financial

20.1 4HE 'ROUP MEASURES lNANCIAL INSTRUMENTS SUCH AS LIABILITIESSUCHASUNQUOTED&INANCIAL!SSETSLOANSTO
DERIVATIVESATFAIRVALUEATEACH"ALANCE3HEETDATE&AIR RELATEDPARTIESETC
Consolidated
Statements
statements

VALUEISTHEPRICETHATWOULDBERECEIVEDTOSELLANASSET
Financial

OR PAID TO TRANSFER A LIABILITY IN AN ORDERLY TRANSACTION

 316 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
 &ORTHEPURPOSEOFFAIRVALUEDISCLOSURESTHE'ROUPHAS • Liabilities or equity instruments related to share
DETERMINEDCLASSESOFASSETSANDLIABILITIESONTHEBASIS BASED PAYMENT ARRANGEMENTS OF THE ACQUIREE
OF THE NATURE CHARACTERISTICS AND RISKS OF THE ASSET OR SHARE n BASED PAYMENTS ARRANGEMENTS OF THE
OR LIABILITY AND THE LEVEL OF THE FAIR VALUE HIERARCHY AS 'ROUPENTEREDINTOTOREPLACESHARE
BASEDPAYMENT
EXPLAINEDABOVE ARRANGEMENTS OF THE ACQUIRE ARE MEASURED IN
ACCORDANCEWITH)ND!33HARE
BASED0AYMENTS
21. EARNINGS PER SHARE
ATTHEACQUISITIONDATE
 4HE BASIC %ARNINGS 0ER 3HARE h%03v  IS COMPUTED
• !SSETSORDISPOSALGROUPS THATARECLASSIlEDASHELD
BY DIVIDING THE NET PROlTLOSS  AFTER TAX FOR THE YEAR
FORSALEINACCORDANCEWITH)ND!3.ON
CURRENT
ATTRIBUTABLE TO THE %QUITY 3HAREHOLDERS OF THE (OLDING
!SSETS (ELD FOR 3ALE AND $ISCONTINUED /PERATIONS
#OMPANY BY THE WEIGHTED AVERAGE NUMBER OF EQUITY
AREMEASUREDINACCORDANCEWITHTHATSTANDARD
SHARES OUTSTANDING DURING THE YEAR ADJUSTED FOR BONUS
elements in equity shares issued during the year and
EXCLUDING TREASURY SHARES 4HE HOLDING COMPANY DID
not have any potentially dilutive securities in the years
PRESENTED
22. BUSINESS COMBINATIONS AND GOODWILL
• Reacquired rights are measured at a value
DETERMINEDONTHEBASISOFTHEREMAININGCONTRACTUAL
TERM OF THE RELATED CONTRACT 3UCH VALUATION DOES
NOT CONSIDER POTENTIAL RENEWAL OF THE REACQUIRED
RIGHT
 7HEN THE 'ROUP ACQUIRES A BUSINESS IT ASSESSES THE
22.1)N ACCORDANCE WITH )ND !3  PROVISIONS RELATED TO
&INANCIAL!SSETSANDLIABILITIESASSUMEDFORAPPROPRIATE
lRSTTIMEADOPTIONTHE'ROUPHASELECTEDTOAPPLY)ND
CLASSIlCATION AND DESIGNATION IN ACCORDANCE WITH
!3ACCOUNTINGFORBUSINESSCOMBINATIONSPROSPECTIVELY
THE CONTRACTUAL TERMS ECONOMIC CIRCUMSTANCES AND
FROM !PRIL   !S SUCH )NDIAN '!!0 BALANCES
PERTINENT CONDITIONS AS AT THE ACQUISITION DATE 4HIS
RELATING TO BUSINESS COMBINATIONS ENTERED INTO BEFORE
INCLUDESTHESEPARATIONOFEMBEDDEDDERIVATIVESINHOST
THATDATEINCLUDINGGOODWILLHAVEBEENCARRIEDFORWARD
CONTRACTSBYTHEACQUIREE
WITHMINIMALADJUSTMENT4HESAMElRSTTIMEADOPTION
EXEMPTIONISALSOUSEDFORASSOCIATESANDJOINTVENTURES  )FTHEBUSINESSCOMBINATIONISACHIEVEDINSTAGESANY
PREVIOUSLY HELD EQUITY INTEREST IS RE
MEASURED AT ITS
22.2 "USINESS COMBINATIONS ARE ACCOUNTED FOR USING
ACQUISITIONDATEFAIRVALUEANDANYRESULTINGGAINORLOSS
THE ACQUISITION METHOD 4HE COST OF AN ACQUISITION
ISRECOGNISEDINPROlTORLOSSOR/#)ASAPPROPRIATE
IS MEASURED AS THE AGGREGATE OF THE CONSIDERATION
TRANSFERRED MEASURED AT ACQUISITION DATE FAIR VALUE  !NY CONTINGENT CONSIDERATION TO BE TRANSFERRED BY THE
ANDTHEAMOUNTOFANYNON
CONTROLLINGINTERESTSINTHE ACQUIRER IS RECOGNISED AT FAIR VALUE AT THE ACQUISITION
ACQUIREE &OR EACH BUSINESS COMBINATION THE 'ROUP DATE#ONTINGENTCONSIDERATIONCLASSIlEDASANASSETOR
ELECTSWHETHERTOMEASURETHENON
CONTROLLINGINTERESTS LIABILITY THAT IS A lNANCIAL INSTRUMENT AND WITHIN THE
INTHEACQUIREEATFAIRVALUEORATTHEPROPORTIONATESHARE SCOPEOF)ND!3&INANCIAL)NSTRUMENTSISMEASURED
OF THE ACQUIREES IDENTIlABLE NET ASSETS !CQUISITION
ATFAIRVALUEWITHCHANGESINFAIRVALUERECOGNISEDINPROlT
RELATEDCOSTSAREEXPENSEDASINCURRED ORLOSS)FTHECONTINGENTCONSIDERATIONISNOTWITHINTHE
SCOPEOF)ND!3ITISMEASUREDINACCORDANCEWITH
 !T THE ACQUISITION DATE THE IDENTIlABLE ASSETS
THE APPROPRIATE )ND !3 #ONTINGENT CONSIDERATION THAT
acquired and the liabilities assumed are recognised
ISCLASSIlEDASEQUITYISNOTRE
MEASUREDATSUBSEQUENT
AT THEIR ACQUISITION DATE FAIR VALUES &OR THIS PURPOSE
reporting dates and subsequent its settlement is
the liabilities assumed include contingent liabilities
ACCOUNTEDFORWITHINEQUITY
representing present obligation and they are measured
AT THEIR ACQUISITION FAIR VALUES IRRESPECTIVE OF THE FACT 22.3'OODWILLISINITIALLYMEASUREDATCOSTBEINGTHEEXCESS
THATOUTmOWOFRESOURCESEMBODYINGECONOMICBENElTS OF THE AGGREGATE OF THE CONSIDERATION TRANSFERRED AND
IS NOT PROBABLE (OWEVER THE FOLLOWING ASSETS AND THE AMOUNT RECOGNISED FOR NON
CONTROLLING INTERESTS
liabilities acquired in a business combination are ANDANYPREVIOUSINTERESTHELDOVERTHENETIDENTIlABLE
MEASUREDATTHEBASISINDICATEDBELOW ASSETSACQUIREDANDLIABILITIESASSUMED)FTHEFAIRVALUE
OFTHENETASSETSACQUIREDISINEXCESSOFTHEAGGREGATE
• $EFERREDTAXASSETSORLIABILITIESANDTHEASSETSOR
CONSIDERATION TRANSFERRED THE 'ROUP RE
ASSESSES
LIABILITIESRELATEDTOEMPLOYEEBENElTARRANGEMENTS
WHETHER IT HAS CORRECTLY IDENTIlED ALL OF THE ASSETS
ARE RECOGNISED AND MEASURED IN ACCORDANCE WITH
ACQUIREDANDALLOFTHELIABILITIESASSUMEDANDREVIEWS
)ND !3  )NCOME 4AX AND )ND !3  %MPLOYEE
the procedures used to measure the amounts to be
"ENElTSRESPECTIVELY
RECOGNISEDATTHEACQUISITIONDATE)FTHEREASSESSMENT
 60th Annual Report 2018-19 317

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(OWEVERIFTHEREISNOCLEAR
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 

About IndianOil
 !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 !PRIL4HEEFFECTOFTHISAMENDMENTISNOT
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

Directors and others

FREQUENTLY WHEN THERE IS AN INDICATION THAT THE UNIT DISCLOSURESAREPROVIDEDIN.OTE 
MAYBEIMPAIRED)FTHERECOVERABLEAMOUNTOFTHECASH
GENERATING UNIT IS LESS THAN ITS CARRYING AMOUNT THE IV. Standards issued but not yet effective

Board of
IMPAIRMENTLOSSISALLOCATEDlRSTTOREDUCETHECARRYING  4HE -INISTRY OF #ORPORATE !FFAIRS VIDE ITS NOTIlCATIONS
AMOUNTOFANYGOODWILLALLOCATEDTOTHEUNITANDTHEN DATED-ARCHHASNOTIlED)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
STANDARDSANDAMENDMENTSTOTHEEXTENTAPPLICABLEIS

Directors’
OR LOSS !N IMPAIRMENT LOSS RECOGNISED FOR GOODWILL IS

Report
NOTREVERSEDINSUBSEQUENTPERIODS SETOUTBELOW
(1) Ind AS-116 Leases
 7HEREGOODWILLHASBEENALLOCATEDTOACASH GENERATING

Discussion & Analysis

UNITANDPARTOFTHEOPERATIONWITHINTHATUNITISDISPOSED  )ND!3REPLACES)ND!3,EASES)TSETSOUT
OFTHEGOODWILLASSOCIATEDWITHTHEDISPOSEDOPERATION THE PRINCIPLES FOR THE RECOGNITION MEASUREMENT

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 OFALEASEALESSEEWILLRECOGNISEALIABILITYTOMAKE

Responsibility Report
PORTIONOFTHECASH GENERATINGUNITRETAINED LEASEPAYMENTSIETHELEASELIABILITY ANDANASSET
representing the right to use the underlying asset
 )FTHEINITIALACCOUNTINGFORABUSINESSCOMBINATIONIS
DURINGTHELEASETERMIETHERIGHT 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
ADDITIONALASSETSORLIABILITIESARERECOGNISEDTOREmECT
LEASESIELEASESWITHALEASETERMOFMONTHS
NEWINFORMATIONOBTAINEDABOUTFACTSANDCIRCUMSTANCES
Governance

ORLESS 
THATEXISTEDATTHEACQUISITIONDATETHATIFKNOWNWOULD
HAVE AFFECTED THE AMOUNTS RECOGNIZED AT THAT DATE
4HESE ADJUSTMENTS ARE CALLED AS MEASUREMENT PERIOD
ADJUSTMENTS4HEMEASUREMENTPERIODDOESNOTEXCEED
ONEYEARFROMTHEACQUISITIONDATE
 ,ESSORACCOUNTINGUNDER)ND!3ISSUBSTANTIALLY
UNCHANGED FROM ACCOUNTING UNDER )ND !3 
,ESSORSWILLCONTINUETOCLASSIFYALLLEASESUSINGTHE
financial
SAME CLASSIlCATION PRINCIPLE AS IN )ND !3  AND
DISTINGUISHBETWEENTWOTYPESOFLEASESOPERATING
Consolidated
Statements
statements

AND lNANCE LEASES )ND !3  REQUIRES LESSEES

Financial

ANDLESSORSTOMAKEMOREEXTENSIVEDISCLOSURESTHAN
UNDER)ND!3
 318 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 1A : SIGNIFICANT ACCOUNTING POLICIES
Transition to Ind AS 116 • 4HE ASSUMPTIONS AN ENTITY MAKES ABOUT THE
EXAMINATIONOFTAXTREATMENTSBYTAXATIONAUTHORITIES
 4HE'ROUPPLANSTOADOPT)ND!3RETROSPECTIVELYWITHTHE
CUMULATIVEEFFECTOFINITIALLYAPPLYINGTHESTANDARDRECOGNIZED • (OW AN ENTITY DETERMINES TAXABLE PROlT TAX LOSS 
ATTHEDATEOFINITIALAPPLICATIONIE!PRIL4HE'ROUP
WILLNOTRESTATECOMPARATIVEAMOUNTSFORTHEYEARPRIORTOlRST
ADOPTION4HE'ROUPPLANSTOELECTFORTHEFOLLOWINGPRACTICAL
EXPEDIENTS
 .OT APPLYING THE STANDARD TO CONTRACTS THAT WERE NOT
 !N ENTITY HAS TO DETERMINE WHETHER TO CONSIDER EACH
PREVIOUSLYIDENTIlEDASCONTAININGALEASEAPPLYING)ND
!3AND
 .OT APPLYING THE STANDARD TO LEASE CONTRACTS FOR WHICH
THELEASETERMSENDSWITHINMONTHSASOFTHEDATEOF
INITIALAPPLICATION
TAXBASESUNUSEDTAXLOSSESUNUSEDTAXCREDITSAND
TAXRATES
• (OW AN ENTITY CONSIDERS CHANGES IN FACTS AND
circumstances
UNCERTAINTAXTREATMENTSEPARATELYORTOGETHERWITHONE
OR MORE OTHER UNCERTAIN TAX TREATMENTS 4HE APPROACH
THAT BETTER PREDICTS THE RESOLUTION OF THE UNCERTAINTY
SHOULD BE FOLLOWED 4HE 'ROUP WILL APPLY THE ABOVE
CHANGEFROMITSEFFECTIVEDATE"ASEDONTHEASSESSMENT
!SLESSEETHEIMPACTOF)ND!3ADOPTIONISEXPECTED DONEBYTHE'ROUPIMPACTOFTHISAPPENDIXISLIKELYTO
TOBEASFOLLOWS BEINSIGNIlCANTONTHElNANCIALSTATEMENTS
Impact on the Balance Sheet as at April 1, 2019: Other Amendments
Assets ` crore  4HISAMENDMENTCLARIlESTHATANENTITYSHALLRECOGNIZE
)NCREASEINNON
CURRENTASSETS
RIGHT
OF
 THE INCOME TAX CONSEQUENCES OF DIVIDENDS IN PROlT OR
use assets LOSS OTHER COMPREHENSIVE INCOME OR EQUITY ACCORDING
$ECREASEIN0REPAID2ENTALS  TO WHERE THE ENTITY ORIGINALLY RECOGNIZED THOSE PAST
Liabilities TRANSACTIONS OR EVENTS 4HIS AMENDMENT WILL NOT HAVE
Increase in lease obligations  ANYMATERIALEFFECTONTHElNANCIALSTATEMENTS
Net impact on equity
  !MENDMENTTO)ND!3n%MPLOYEE"ENElTSRELATINGTO
Plan amendment, curtailment or settlement
)MPACT ON THE 3TATEMENT OF 0ROlT AND ,OSS INCREASE
(decrease) :  4HE AMENDMENTS ADDRESS THE ACCOUNTING WHEN A PLAN
Assets ` crore AMENDMENT CURTAILMENT OR SETTLEMENT OCCURS DURING
)NCREASE IN $EPRECIATION AND  AREPORTINGPERIOD4HEAMENDMENTSSPECIFYTHATWHEN
!MORTIZATION A PLAN AMENDMENT CURTAILMENT OR SETTLEMENT OCCURS
DURINGTHEANNUALREPORTINGPERIODANENTITYISREQUIRED
$ECREASEIN/THER%XPENSES 
TO
/PERATINGPROlT 97.21
)NCREASEIN&INANCECOSTS  • $ETERMINECURRENTSERVICECOSTFORTHEREMAINDEROF
0ROlT"EFORE4AX (100.10) THE PERIOD AFTER THE PLAN AMENDMENT CURTAILMENT
(2) Ind AS-12
 !PPENDIX#
5NCERTAINTYOVER)NCOME4AX4REATMENT
 4HEAPPENDIXADDRESSESTHEACCOUNTINGFORINCOMETAXES
WHENTAXTREATMENTSINVOLVEUNCERTAINTYTHATAFFECTSTHE
ORSETTLEMENTUSINGTHEACTUARIALASSUMPTIONSUSED
TOREMEASURETHENETDElNEDBENElTLIABILITYASSET 
REmECTING THE BENElTS OFFERED UNDER THE PLAN AND
THEPLANASSETSAFTERTHATEVENT
• $ETERMINE NET INTEREST FOR THE REMAINDER OF THE
APPLICATION OF )ND !3  AND DOES NOT APPLY TO TAXES PERIOD AFTER THE PLAN AMENDMENT CURTAILMENT OR
OR LEVIES OUTSIDE THE SCOPE OF )ND !3  NOR DOES IT
SPECIlCALLYINCLUDEREQUIREMENTSRELATINGTOINTERESTAND
PENALTIESASSOCIATEDWITHUNCERTAINTAXTREATMENTS
 4HEAPPENDIXSPECIlCALLYADDRESSESTHEFOLLOWING
• 7HETHERANENTITYCONSIDERSUNCERTAINTAXTREATMENTS
SETTLEMENT USING THE NET DElNED BENElT LIABILITY
ASSET  REmECTING THE BENElTS OFFERED UNDER THE
PLANANDTHEPLANASSETSAFTERTHATEVENTANDTHE
DISCOUNT RATE USED TO REMEASURE THAT NET DElNED
BENElTLIABILITYASSET 
 4HE AMENDMENTS ALSO CLARIFY THAT AN ENTITY lRST
separately DETERMINES ANY PAST SERVICE COST OR A GAIN OR LOSS ON
 60th Annual Report 2018-19 319

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
!NYCHANGEINTHATEFFECTEXCLUDINGAMOUNTSINCLUDED
INTHENETINTERESTISRECOGNISEDINOTHERCOMPREHENSIVE
INCOME4HESEAMENDMENTSWILLAPPLYONLYTOANYFUTURE

About IndianOil
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

Directors and others

(5) Amendment of Ind AS 28, Investments of associates
and joint ventures

Board of
 !N ENTITYS NET INVESTMENT IN JOINT VENTURE AND
ASSOCIATESINCLUDEINVESTMENTSINORDINARYSHARESOTHER
INTERESTS THAT ARE ACCOUNTED FOR USING EQUITY METHOD
AND OTHER LONG TERM INTERESTS SUCH AS LONG TERM LOANS
THESETTLEMENTOFWHICHISNEITHERPLANNEDNORLIKELYTO
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

Discussion & Analysis

)ND!3APPLIESTOSUCHLONG TERMINTERESTS

Management’s
 4HEAMENDMENTSALSOCLARIlEDTHATINAPPLYING)ND!3
 AN ENTITY DOES NOT TAKE ACCOUNT OF ANY LOSSES OF
THEASSOCIATEORJOINTVENTUREORANYIMPAIRMENTLOSSES
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

NOTES TO FINANCIAL STATEMENTS

NOTE – 1B : SIGNIFICANT ACCOUNTING ESTIMATES & JUDGEMENTS
4HE PREPARATION OF THE 'ROUPS lNANCIAL STATEMENTS REQUIRES THEMINIMUMLEASEPAYMENTSARESUBSTANTIALLYEQUALTOFAIRVALUE
MANAGEMENT TO MAKE JUDGEMENTS ESTIMATES AND ASSUMPTIONS OF THE LEASED ASSET  )N ADDITION OTHER INDICATORS SUCH AS  THE
THATAFFECTTHEREPORTEDAMOUNTSOFREVENUESEXPENSESASSETSAND LESSEES ABILITY TO RENEW LEASE FOR ANOTHER TERM AT SUBSTANTIALLY
LIABILITIESANDTHEAC'ROUPINGDISCLOSURESANDTHEDISCLOSUREOF BELOWMARKETRENTLESSEESOPTIONTOPURCHASEATPRICESIGNIlCANTLY
CONTINGENTLIABILITIES4HESEINCLUDERECOGNITIONANDMEASUREMENT BELOWFAIRVALUEAREALSOEXAMINEDFORCLASSIlCATIONOFLANDLEASE
OF lNANCIAL INSTRUMENTS ESTIMATES OF USEFUL LIVES AND RESIDUAL ,EASESNOTMEETINGTHElNANCELEASECRITERIAARECLASSIlEDUNDER
VALUE OF 0ROPERTY 0LANT AND %QUIPMENT AND INTANGIBLE ASSETS OPERATINGLEASES
VALUATION OF INVENTORIES MEASUREMENT OF RECOVERABLE AMOUNTS
Oil & Gas Reserves
OF CASH
GENERATING UNITS MEASUREMENT OF EMPLOYEE BENElTS
ACTUARIALASSUMPTIONSPROVISIONSETC 4HEDETERMINATIONOFTHEGROUPSESTIMATEDOILRESERVESREQUIRES
SIGNIlCANTJUDGEMENTSANDESTIMATESTOBEAPPLIEDANDTHESEARE
5NCERTAINTYABOUTTHESEASSUMPTIONSANDESTIMATESCOULDRESULT
REGULARLY REVIEWED AND UPDATED 2ESERVES ARE ESTIMATED USING
IN OUTCOMES THAT REQUIRE A MATERIAL ADJUSTMENT TO THE CARRYING
INDEPENDENT RESERVOIR ENGINEERING REPORTS  AND FACTORS SUCH
AMOUNTOFASSETSORLIABILITIESAFFECTEDINFUTUREPERIODS4HE'ROUP
AS THE AVAILABILITY OF GEOLOGICAL AND ENGINEERING DATA RESERVOIR
continually evaluates these estimates and assumptions based on
PERFORMANCEDATAACQUISITIONANDDIVESTMENTACTIVITYDRILLINGOF
THEMOSTRECENTLYAVAILABLEINFORMATION2EVISIONSTOACCOUNTING
ESTIMATESARERECOGNIZEDPROSPECTIVELYINTHE3TATEMENTOF0ROlT
AND,OSSINTHEPERIODINWHICHTHEESTIMATESAREREVISEDANDIN
ANYFUTUREPERIODSAFFECTED
JUDGEMENTS
NEWWELLSANDCOMMODITYPRICESALLIMPACTONTHEDETERMINATION
OFTHEGROUPSESTIMATESOFITSOILRESERVES)NDEPENDENTRESERVOIR
ENGINEERSPERFORMEVALUATIONSOFTHE#ORPORATIONSOILANDNATURAL
GASRESERVESONANANNUALBASIS4HEGROUPDETERMINESITSPROVED
RESERVES ESTIMATES ON THE REQUIREMENT OF REASONABLE CERTAINTY
WITH RIGOROUS TECHNICAL AND COMMERCIAL ASSESSMENTS BASED ON
)N THE PROCESS OF APPLYING THE 'ROUPS ACCOUNTING POLICIES
CONVENTIONALINDUSTRYPRACTICEANDREGULATORYREQUIREMENTS2EFER
MANAGEMENTHASMADETHEFOLLOWINGJUDGEMENTSWHICHHAVETHE
NOTE
FORRELATEDDISCLOSURE
SIGNIlCANTEFFECTONTHEAMOUNTSRECOGNISEDINTHECONSOLIDATED
lNANCIALSTATEMENTS Intangible Asset under Development
Materiality !CQUISITIONCOSTSANDDRILLINGOFEXPLORATORYWELLCOSTSARECAPITALIZED
ASINTANGIBLEASSETUNDERDEVELOPMENTANDAREREVIEWEDATEACH
)ND !3 REQUIRES ASSESSMENT OF MATERIALITY FOR ACCOUNTING AND
REPORTING DATE TO CONlRM THAT EXPLORATION DRILLING IS STILL UNDER
DISCLOSURE OF VARIOUS TRANSACTIONS IN THE lNANCIAL STATEMENTS
WAY OR WORK HAS BEEN DETERMINEDUNDER WAY TO DETERMINE THAT
!CCORDINGLYTHE'ROUPASSESSESMATERIALITYLIMITSFORVARIOUSITEMS
THEDISCOVERYISECONOMICALLYVIABLEBASEDONARANGEOFTECHNICAL
FORACCOUNTINGANDDISCLOSURESANDFOLLOWSONACONSISTENTBASIS
 COMMERCIAL CONSIDERATIONS AND FOR ESTABLISHING DEVELOPMENT
/VERALL MATERIALITY IS ALSO ASSESSED BASED ON VARIOUS lNANCIAL
PLANSANDTIMINGSUFlCIENTREASONABLEPROGRESSISBEINGMADE)F
PARAMETERSSUCH AS 'ROSS"LOCKOF ASSETS .ET"LOCK OF !SSETS
NOFUTUREACTIVITYISPLANNEDONREASONABLEGROUNDSTIMEFRAMES
4OTAL!SSETS2EVENUEAND0ROlT"EFORE4AX4HEMATERIALITYLIMITS
Intangible asset under development and property acquisition
AREREVIEWEDANDAPPROVEDBYTHE"OARDOFTHE(OLDING#OMPANY
COSTS IS WRITTEN OFF 5PON START OF PRODUCTION FROM lELD AND
,EASECLASSIlCATIONINCASEOF,EASEHOLD,AND RECOGNITION OF PROVED RESERVES COST CARRIED AS INTANGIBLE ASSET
UNDER DEVELOPMENT IS TRANSFERRED TO PRODUCING PROPERTIES !LSO
4HE'ROUPHASOBTAINEDVARIOUSLANDSFROMTHEGOVERNMENTSFOR REFER.OTE
FORRELATEDDISCLOSURES
PURPOSE OF PLANTS FACILITIES AND OFlCES 4HESE LANDS ARE HAVING
VARIOUS TENURES AND AT THE END OF LEASE TERM THE LEASE COULD Contingencies
BE EXTENDED FOR ANOTHER TERM OR THE LAND COULD BE RETURNED TO
#ONTINGENT LIABILITIES MAY ARISE FROM THE ORDINARY COURSE OF
THEGOVERNMENTAUTHORITY3INCELANDHASANINDElNITEECONOMIC
BUSINESS IN RELATION TO CLAIMS AGAINST THE 'ROUP INCLUDING
LIFETHEMANGEMENTHASCONSIDEREDYEARSANDABOVECASESFOR
LEGALCONTRACTORLANDACCESSANDOTHERCLAIMS"YTHEIRNATURE
lNANCELEASEIFATTHEINCEPTIONOFTHELEASETHEPRESENTVALUEOF
CONTINGENCIESWILLBERESOLVEDONLYWHENONEORMOREUNCERTAIN
MINIMUMLEASEPAYMENTSARESUBSTANTIALYEQUALTOFAIRVALUEOF
FUTURE EVENTS OCCUR OR FAIL TO OCCUR 4HE ASSESSMENT OF THE
LEASEDASSETS&URTHERSCASESBETWEEN
AREALSOEVALUATED
EXISTENCE AND POTENTIAL QUANTUM OF CONTINGENCIES INHERENTLY
FOR lNANCE LEASE ON THE BASIS OF PRINCIPLE THAT PRESENT VALUE OF
 60th Annual Report 2018-19 321

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

About IndianOil
!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
ABOUTFUTUREDEVELOPMENTSHOWEVERMAYCHANGEDUETOMARKET
PROPERTIESANDUPONRETIREMENTOFITSOILANDNATURALGASASSETS
CHANGESORCIRCUMSTANCESARISINGTHATAREBEYONDTHECONTROLOF
DECOMMISSIONINGCOSTSWILLBEINCURRED%STIMATESOFTHESECOSTS
THE'ROUP3UCHCHANGESAREREmECTEDINTHEASSUMPTIONSWHEN
ARESUBJECTTOUNCERTAINTYASSOCIATEDWITHTHEMETHODTIMINGAND

Description of
THEYOCCUR
EXTENTOFFUTUREDECOMMISSIONINGACTIVITIES4HELIABILITYRELATED

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

Directors and others

!NACTUARIALVALUATIONINVOLVESMAKINGVARIOUSASSUMPTIONSTHAT
MAYDIFFERFROMACTUALDEVELOPMENTSINTHEFUTURE4HESEINCLUDE
THEDETERMINATIONOFTHEDISCOUNTRATEFUTURESALARYINCREASESAND

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

Discussion & Analysis

GIVENIN.OTE

Management’s
&AIRVALUEMEASUREMENTOFlNANCIALINSTRUMENTS
7HEN THE FAIR VALUES OF lNANCIAL ASSETS AND lNANCIAL LIABILITIES
recorded in the balance sheet cannot be measured based on
QUOTEDPRICESINACTIVEMARKETSTHEIRFAIRVALUEISMEASUREDUSING

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
INPUTSSUCHASPRICEESTIMATESVOLUMEESTIMATESRATEESTIMATES
ETC#HANGESINASSUMPTIONSABOUTTHESEFACTORSCOULDAFFECTTHE Report on Corporate
REPORTEDFAIRVALUEOFlNANCIALINSTRUMENTS!LSOREFERNOTEFOR
FURTHERDISCLOSURESOFESTIMATESANDASSUMPTIONS
Governance
Consolidated financial
Statements
statements
Financial
 322 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 2 : PROPERTY, PLANT AND EQUIPMENT
Current Year
`IN#RORE
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
(Refer A&F) (Refer A&F) (Refer B&F)
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
April 1, 2018
Additions during           
the year
4RANSFERSFROM            
CONSTRUCTIONWORK
'ROSS"LOCK

IN PROGRESS
$ISPOSALS           
$EDUCTIONS
4RANSFERS
2ECLASSIlCATIONS
&#42
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
&#42
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

Impairment Loss                   

during the year
Impairment Loss                    
reversed during
THEYEAR&#42
Impairment Loss - - 14.77 50.62 - - - - 0.19 227.04 292.62
as at March 31,
2019
Net Block as at 3,086.05 402.32 11,216.32 1,07,300.15 726.50 49.54 376.10 128.74 1,090.85 5,270.55 1,29,647.12
March 31, 2019
 60th Annual Report 2018-19 323

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

(Refer A&F) (Refer A&F) (Refer B&F)

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&#42

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

Directors and others

Depreciation & - 3.62 1,210.01 9,559.96 332.46 12.18 94.06 13.10 71.75 624.50 11,921.64
$%02%#)!4)/.!-/24)3!4)/.

Amortisation as at
April 1, 2017

Board of
$EPRECIATION            
Amortisation during
the year

$ISPOSALS            
$EDUCTIONS4RANSFERS
2ECLASSIlCATIONS&#42

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

Total Impairment as at - - 14.70 27.53 - - - - 0.19 214.71 257.13

April 1, 2017

Discussion & Analysis

Impairment Loss                   
)-0!)2-%.4

Management’s
during the year

Impairment Loss                    

reversed during the
YEAR&#42

Total Impairment as at - - 14.76 50.88 - - - - 0.19 223.24 289.07

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 2 : PROPERTY, PLANT AND EQUIPMENT (Contd...)
! I &REEHOLDLANDINCLUDES`22.13 crore`CRORE LYINGVACANTDUETOTITLEDISPUTESLITIGATION
 II /UTOFTHE&REEHOLDLANDMEASURINGACRESAT-ATHURAAND!GRAREGIONSFORMINGPARTOF.OTE.OLANDMEASURING
ACRESAPPROX HASBEENACQUIREDBY.(!)ASAPARTOFTHE.(WIDENINGPROJECTFORWHICHTHEDETERMINATIONOFVALUEOF
COMPENSATIONISPENDING!CCORDINGLYTHEVALUEOFLANDAMOUNTINGTO`CROREISCONTINUEDTOBEINCLUDEDIN&REEHOLDLAND
" I "UILDINGSINCLUDE`0.01 crore`CRORE TOWARDSVALUEOF1605 3HARESIN#O OPERATIVE(OUSING3OCIETIES
TOWARDSMEMBERSHIPOFSUCHSOCIETIESFORPURCHASEOFmATS
 II )NCLUDES2OADS"RIDGESETCIE!SSETSOTHERTHAN"UILDING OF'ROSSBLOCKAMOUNTINGTO`2,945.52 crore`
CRORE ANDNETBLOCKAMOUNTINGTO`1,809.30 crore`CRORE 
# 4HECOSTOFASSETSARENETOF6!4#2%$)4#%.6!4'34)4#WHEREVERAPPLICABLE
$ $EPRECIATIONANDAMORTISATIONFORTHEYEARINCLUDES`8.22 crore`CRORE RELATINGTOCONSTRUCTIONPERIODEXPENSESSHOWN
IN.OTE 
% 2AILWAYSHAVECLAIMEDTRANSFEROFOWNERSHIPINRESPECTOFCERTAINASSETSPROVIDEDBYTHE#OMPANYATRAILWAYPREMISESWHICHHAS
NOTBEENACCEPTEDBYTHE#OMPANYANDCONTINUETOBEPARTOFlXEDTOBEPARTOFlXEDASSETSOFTHE#OMPANY7$6OFSUCHASSETSIS
`70.10CRORES`CRORES 4HISINCLUDES7$6OFASSETSWORTH`7.09CRORE`CRORE WHICHARENOTINOPERATION
ATPRESENT(OWEVERCONSIDERINGTHERIGHTONTHEASSETSANDFUTURECOMMERCIALINTERESTOFTHECOMPANYTHESEASSETSARECONTINUED
TOBEREmECTEDAS00%
& ,ANDAND"UILDINGSINCLUDE`200.01 crore`CRORE INRESPECTOFWHICH4ITLE,EASE$EEDSAREPENDINGFOREXECUTION
ORRENEWAL
' &ORDETAILSREGARDINGHYPOTHECATIONPLEDGEOFASSETSREFER.OTE 

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 

Details of Company’s share of Jointly Owned Assets included above:

`IN#RORE
Assets 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 
,AND ,EASEHOLD (0#"0#"!,-%2,!72)%      0.05  
Buildings (0#"0#"!,-%2,!72)%     33.54 
0LANTAND%QUIPMENT (0#"0#'3&#)0#,'.2%     50.49 
2AILWAY3IDINGS (0#"0#     8.78 
$RAINAGE3EWAGE '3&#     0.40 
Water Supply
TOTAL 120.10 23.57 - 96.53 80.54
 60th Annual Report 2018-19 325

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   - 
$RAINAGE3EWAGE7ATER3UPPLY 24.90  - 
TOTAL 570.77 173.44 114.36 327.60

NOTE - 2.1 : CAPITAL WORK IN PROGRESS

Description of
`IN#RORE
Particulars March 31, 2019 March 31, 2018

Capitals
Construction Work in Progress - Tangible Assets
)NCLUDINGUNALLOCATEDCAPITALEXPENDITUREMATERIALSATSITE

Directors and others

"ALANCEASATBEGINNINGOFTHEYEAR A 11,158.82 
!DD!DDITIONSDURINGTHEYEAR 13,593.44 
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 8,001.97 

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

Discussion & Analysis

,ESS0ROVISIONFOR#APITAL,OSSES 10.61 
4,728.55 2,685.99

Management’s
#APITAL'OODSIN4RANSIT 1,049.95 

Construction Period Expenses pending allocation:

"ALANCEASATBEGINNINGOFTHEYEAR 675.89 

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 2.2 : CONSTRUCTION PERIOD EXPENSES (NET) DURING THE YEAR
`IN#RORE
Particulars 2018-19 2017-18
%MPLOYEE"ENElT%XPENSES 369.18 
Repairs and Maintenance 5.28 
#ONSUMPTIONOF3TORESAND3PARES - 
0OWER&UEL 35.41 
Rent 3.26 
Insurance 7.44 
2ATESAND4AXES 3.86 
4RAVELLING%XPENSES 40.54 
#OMMUNICATION%XPENSES 1.22 
0RINTINGAND3TATIONERY 0.65 
Electricity and Water Charges 8.53 
"ANK#HARGES 0.01 
4ECHNICAL!SSISTANCE&EES 2.31 
%XCHANGE&LUCTUATION 0.18 
&INANCE#OSTS 44.71 
$EPRECIATIONAND!MORTIZATIONON
4ANGIBLE!SSETS 8.22 
Intangible Assets 0.01  
Others 47.09 
Total Expenses 577.90 576.30
Less : Recoveries 10.94 
Net Expenditure during the year 566.96 573.64
 60th Annual Report 2018-19 327

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

Additions during the year    

4RANSFERSFROM)NTANGIBLE!SSETSUNDER$EVELOPMENT     

About IndianOil
$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS&#42     
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)/.!.$

Amortisation during the year    

$%02%#)!4)/.

)-0!)2-%.4

$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS&#42     

Total Amortisation as at March 31, 2019 9.36 323.58 110.64 443.58

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

Directors and others

Net Block as at March 31, 2019 603.55 2,155.95 86.10 2,845.60

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

Additions during the year    

4RANSFERSFROM)NTANGIBLE!SSETSUNDER$EVELOPMENT    

Directors’
$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS&#42    

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)/.!.$

Discussion & Analysis

Amortisation during the year    
$%02%#)!4)/.

)-0!)2-%.4

$ISPOSALS$EDUCTIONS4RANSFERS2ECLASSIlCATIONS&#42     

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

March 31, 2019 March 31, 2018

Governance

2IGHTOF7AY 586.65 

 2IGHTOFWAYFORLAYINGPIPELINESAREACQUIREDONAPERPETUALBASIS
Consolidated financial
Statements
statements
Financial
 328 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 3.1: INTANGIBLE ASSETS UNDER DEVELOPMENT
`IN#RORE
Particulars March 31, 2019 March 31, 2018
7ORKIN0ROGRESS )NTANGIBLE!SSETS
)NCLUDING5NALLOCATED#APITAL%XPENDITURE
"ALANCEASATBEGINNINGOFTHEYEAR 4,284.87 
!DD.ETEXPENDITUREDURINGTHEYEAR 979.15 
5,264.02 4,360.16
,ESS!LLOCATED!DJUSTEDDURINGTHEYEAR 144.48 
5,119.54 4,284.87
,ESS0ROVISIONFOR,OSS 239.81 
4,879.73 
TOTAL 4,879.73 4,045.06
!)NCLUDES#APITAL%XPENDITURE.ET RELATINGTOONGOING/IL'AS%XPLORATION 3,602.57 
0RODUCTIONACTIVITIES
")NTANGIBLEASSETSUNDERDEVELOPMENTAREMAINLYINTHENATUREOF%XPLORATION
0RODUCTION"LOCKSAND,ICENCES#OMPUTER3OFTWARES
 60th Annual Report 2018-19 329

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*):

Directors and others

UNQUOTED:
)NDIAN/ILTANKING,IMITED Indian Rupees  494828289 561.41  

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  

Discussion & Analysis

)NDIAN/IL3KY4ANKING0RIVATE,IMITED Indian Rupees  25950000 87.01  

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

(INDUSTAN5RVARAKAND2ASAYAN,IMITED Indian Rupees  440325000 443.22  

2ATNAGIRI2ElNERIES0ETROCHEMICALS Indian Rupees  50000000 32.54  
Limited
financial

)NDRADHANUSH'AS'RID,IMITED Indian Rupees  5000000 2.58    

)NDIAN/IL2UCHI"IOFUELS,,0#APITAL Indian Rupees   - -    
Consolidated
Statements
statements

&UND UNDER)NSOLVENCY2ESOLUTION
Financial

0ROCESS
 330 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 4 : INVESTMENTS (Contd...)
Particulars Investment Face Value/ March 31, 2019 March 31, 2018
Currency Paid up Number Carrying Number Carrying
Value Value Value
` (` in Crore) (` in Crore)
)NDIAN!DDITIVES,TD Indian Rupees  1183401 158.98  
.ATIONAL!ROMATICSAND0ETROCHEMICAL Indian Rupees  25000 -   
Corporation Limited
6!.+/2)NDIA0TE,TD 53$ 1 568968589 4,700.36  
4!!3)NDIA0TE,TD 53$ 1 407941730 2,868.00  
5RJA"HARAT0TE,TD a
53$ 1 100 -    
&ALCON/IL'AS"6 53$ 1 30 123.09  
Sub-total: (I)(B) 10,598.22 9,806.97
Total Investments in Associates & JVs [(I) 11,893.40 11,048.51
(A)+(I)(B)]
C In Others
)NVESTMENTSDESIGNATEDATFAIRVALUE
THROUGH/#)
QUOTED:
/ILAND.ATURAL'AS#ORPORATION,IMITED Indian Rupees  986885142 15,765.49  
'!),)NDIA ,IMITED Indian Rupees  54452730 1,893.05  
Oil India Limited Indian Rupees  53501100 992.17  
UNQUOTED:
)NTERNATIONAL#OOPERATIVE0ETROLEUM 53$  350 0.02  
!SSOCIATION.EW9ORK
(ALDIA0ETROCHEMICAL,IMITED Indian Rupees  150000000 651.75  
6ADODARA%NVIRO#HANNEL,IMITED &ORMERLY Indian Rupees
b
 7151 -   
%FmUENT#HANNEL0ROJECTS,IMITED
Woodlands Multispeciality Hospital Limited Indian Rupees  101095 0.10  
3HAMA&ORGE#O,IMITED c UNDERLIQUIDATION
Indian Rupees  100000 -   
"IO4ECH#ONSORTIUM)NDIA,TD Indian Rupees  100000 0.10  
#EYLON0ETROLEUM3TORAGE4ERMINAL,IMITED 3RI,ANKAN  250000000 295.73  
Rupees
,ANZATECH.EW:EALAND,IMITED 53$  1204251 138.33    
#ARABOBO)NGENIERIA9#ONSTRUCCIONES3! 53$ 12.1% of 6.10 OF 
Capital #APITAL3TOCK
Stock
0ETROCARABOBO3! 53$ 3.5% of 441.97 OF 
Capital #APITAL3TOCK
Stock
-ER2OUGE/IL3TORAGE4ERMINAL#O,TD Mauritian  5000 6.27  
h-/34v Rupees
 60th Annual Report 2018-19 331

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

Directors and others

II In Preference Shares
)NVESTMENTSATFAIRVALUETHROUGHPROlTOR

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

Discussion & Analysis

Quoted:
/IL-ARKETING#OMPANIES'/)3PECIAL Indian Rupees  - -  

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

Total Other Investments [(I) 23,617.36 25,558.76

(D)+(II)+(III)+(IV)]
Total Non Current Investments (I+II+III+IV) 35,510.76 36,607.27
Consolidated financial
Statements
statements
Financial
 332 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 4 : INVESTMENTS (Contd...)
Particulars Investment Face Value/ March 31, 2019 March 31, 2018
Currency Paid up Number Carrying Number Carrying
Value Value Value
` (` in Crore) (` in Crore)
CURRENT INVESTMENTS :
5NQUOTEDATFAIRVALUETHROUGH
PROlTORLOSS
5NIT4RUST)NVESTMENT.!6  1.10 
In Government Securities (at fair value
through OCI)
Quoted:
/IL-ARKETING#OMPANIES'/)3PECIAL Indian Rupees  8366020 8,415.80  
Bonds
8,416.90 8,198.78

)NVESTMENT IN *OINT 6ENTURES!SSOCIATES HAVE BEEN SHOWN AS PER EQUITY METHOD OF CONSOLIDATION !CCORDINGLY CARRYING VALUE OF
INVESTMENTSHAVEBEENREDUCEDBYSHAREOFLOSSESANDWHEREVEROTHERLONGTERMINTERESTINTHEENTITYEXISTSUNADJUSTEDLOSSESIFANY
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:

Nature of Bond No. of Bonds Face Value Fair value

(` in Crore) (` in Crore)
Current investment:
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
'/)30%#)!,"/.$3   
Total Current Investments 8366020 8,366.02 8,415.80
 60th Annual Report 2018-19 333

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 CURRENTTHEFOLLOWINGAREPLEDGEDINFAVOUROF#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"ONDSTHEFOLLOWINGHASBEENEARMARKEDINLINEWITHTHEREQUIREMENTOF#OMPANIES

Capitals
3HARE#APITALAND$EBENTURES 2ULES
`IN#RORE
Nature of Bonds March 31, 2019 March 31, 2018

Directors and others

Face Value Carrying Value Face Value Carrying Value
'/)30%#)!,"/.$3 - -  

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

Discussion & Analysis

e Investment Amount 2,500 2,500
F Investment Amount 2,000 2,000

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 5 : LOANS (Unsecured, Considered Good at amortised cost unless otherwise stated)
`IN#RORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Security Deposits
3ECURED#ONSIDERED'OOD 0.06  - 
5NSECURED#ONSIDERED'OOD 138.25  179.81 
5NSECURED#ONSIDERED$OUBTFUL 0.20  1.36 
138.51 124.27 181.17 130.43
,ESS0ROVISIONFOR$OUBTFUL$EPOSITS 0.20  1.36 
138.31 124.07 179.81 129.05
Loans
To Related Parties
3ECURED#ONSIDERED'OOD 0.16  0.05 
5NSECURED#ONSIDERED'OOD 195.88  197.77 
7HICHHAVESIGNIlCANTINCREASEIN#REDIT -   -  
2ISK
Credit Impaired -   2.25 
196.04 209.21 200.07 273.09
,ESS0ROVISIONFOR$OUBTFUL,OANS -   2.25 
196.04 209.21 197.82 270.84
To Others
3ECURED#ONSIDERED'OOD 763.63  119.49 
5NSECURED#ONSIDERED'OOD 1,193.12  1,094.93 
7HICHHAVESIGNIlCANTINCREASEIN#REDIT -  1,141.71  
2ISK
Credit Impaired -   1.38 
1,956.75 1,987.59 2,357.51 236.10
,ESS0ROVISIONFOR$OUBTFUL,OANS -  1,143.09 
1,956.75 1,825.43 1,214.42 235.24
2,152.79 2,034.64 1,412.24 506.08
TOTAL 2,291.10 2,158.71 1,592.05 635.13
 60th Annual Report 2018-19 335

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 

Directors and others

$OUBTFUL
- - 22.61 21.59
From Others

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 

Discussion & Analysis

7.85 12.99 1,020.37 1,509.92
TOTAL 1,582.81 3,483.25 20,490.53 11,287.05

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

Particulars Non Current Current

March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Income/Current Tax Asset/(Liability) - Net
!DVANCEPAYMENTSFOR#URRENT4AX 21,821.98  486.60 
financial

,ESS0ROVISIONS 20,428.65  4.68 

Income/Current Tax Asset/(Liability) - Net 1,393.33 1,302.93 481.92 0.91
Consolidated
Statements
statements

TOTAL 1,393.33 1,302.93 481.92 0.91

Financial
 336 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 8 : OTHER ASSETS (NON FINANCIAL) (Unsecured, Considered Good unless otherwise stated)
`IN#RORE
Particulars Non Current Current
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Advances for Capital Expenditure
To Related Parties
5NSECURED#ONSIDERED'OOD 0.02  -  
0.02 8.78 - -
To Others
3ECURED#ONSIDERED'OOD 3.20   -  
5NSECURED#ONSIDERED'OOD 1,367.81  -  
5NSECURED#ONSIDERED$OUBTFUL 0.09  -  
1,371.10 772.72 - -
1,371.12 781.50 - -
,ESS0ROVISIONFOR$OUBTFUL 0.09  -  
Advances
1,371.03 781.41 - -
Advances Recoverable
From Related Parties
5NSECURED#ONSIDERED'OOD 264.05  27.01 
From Others
3ECURED#ONSIDERED'OOD -   - 
5NSECURED#ONSIDERED'OOD -  2,785.83 
5NSECURED#ONSIDERED$OUBTFUL -   4.96 
- 219.51 2,790.79 1,846.67
,ESS0ROVISIONFOR$OUBTFUL -   4.96 
Advances
- 219.51 2,785.83 1,843.24
264.05 506.03 2,812.84 1,868.02
Claims Recoverable:
From Related Parties
5NSECURED#ONSIDERED'OOD -   1.99 
5NSECURED#ONSIDERED$OUBTFUL -   2.61 
- - 4.60 6.04
From Others
5NSECURED#ONSIDERED'OOD -   993.15 
5NSECURED#ONSIDERED$OUBTFUL -   170.06 
- - 1,163.21 1,082.10
,ESS0ROVISIONFOR$OUBTFUL#LAIMS -   172.67 
- - 995.14 882.07
Balance/Deposits with Government
Authorities
5NSECURED#ONSIDERED'OOD -   478.32 

'OLD/THER0RECIOUS-ETALS -   69.00 

,ESS0ROVISIONFOR$IMINUTIONINVALUE -   11.47 
- - 57.53 150.23
$EFERRED%XPENSES 743.10  180.19 
0REPAID2ENTALS 1,448.40  53.97 
Others -   0.36 
TOTAL 3,826.58 3,262.30 4,578.35 3,633.62
 60th Annual Report 2018-19 337

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
3TORES3PARESETC 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 
3TORES3PARESETC 236.88 

Directors and others

13,873.31 11,431.69
TOTAL 77,126.48 70,567.90

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

Discussion & Analysis

Particulars March 31, 2019
From Related Parties

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

TOTAL 15,797.72 10,696.48

Consolidated financial
Statements
statements
Financial
 338 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 11 : CASH AND CASH EQUIVALENTS
`IN#RORE
Particulars March 31, 2019 March 31, 2018
"ANK"ALANCESWITH3CHEDULED"ANKS
In Current Account 341.14 
)N&IXED$EPOSIT -ATURITYWITHINMONTHS 444.93 
786.07 245.41
"ANK"ALANCESWITH.ON 3CHEDULED"ANKS 129.71 
#HEQUES$RAFTSINHAND 15.16 
#ASH"ALANCES)NCLUDING)MPREST 2.34 
TOTAL 933.28 318.73

NOTE - 12 : BANK BALANCES OTHER THAN ABOVE

`IN#RORE
Particulars March 31, 2019 March 31, 2018
&IXED$EPOSIT A 86.13 
%ARMARKED"ALANCES B 44.58 
"LOCKED!CCOUNT C 0.68 
/THER"ANK"ALANCES $ 0.01 
TOTAL 131.40 177.58
! %ARMARKEDINFAVOUROF3TATUTORY!UTHORITIES 11.52 
" 0ERTAINSTO
5NPAID$IVIDEND 44.56 
&RACTIONAL3HARE7ARRANTS 0.02 
# 4HEREEXISTSRESTRICTIONSONBANKINGTRANSACTIONSIN,IBYADUETOPOLITICALUNREST
$ 4HEREEXISTSRESTRICTIONSONREPATRIATIONFROMBANKACCOUNTIN-YANMAR 0.01 

NOTE-13 : ASSETS HELD FOR DISPOSAL

`IN#RORE
Particulars March 31, 2019 March 31, 2018
&REEHOLDLAND A 1.65 
Building 0.32 
0LANTAND%QUIPMENT 224.81 
/FlCE%QUIPMENT B 0.52 
4RANSPORT%QUIPMENT 0.08 
&URNITUREAND&IXTURES 0.02 
TOTAL 227.40 161.68
! 4HE'ROUPHASSURPLUSLANDATVARIOUSLOCATIONSSUCHAS,0'0LANT$EPOTSAND2/SETCWHICHISUNDERTHEPROCESSOFDISPOSAL
4HEMANAGEMENTINTENDSTOSELLTHELAND.OIMPAIRMENTWASRECOGNISEDONRECLASSIlCATIONOFLANDASHELDFORSALEASTHE'ROUP
EXPECTSTHATTHEFAIRVALUEESTIMATEDBASEDONTHERECENTMARKETPRICESOFSIMILARPROPERTIESINSIMILARLOCATIONS LESSCOSTSTOSELL
ISHIGHERTHANTHECARRYINGAMOUNT
" )NCLUDESNONCURRENTASSETSRETIREDFROMACTIVEUSEEARLIERUSEDINVARIOUSSEGMENTSANDHELDFORDISPOSALTHROUGHTENDERINGPROCESS
WITHINAYEAR
# $URINGTHEYEARTHE'ROUPHASRECOGNIZEDIMPAIRMENTLOSSOF`150.36 crore`CRORE ONWRITE DOWNOFTHEASSETTOFAIR
VALUELESSCOSTSTOSELLANDTHESAMEHASBEENSHOWNIN0ROVISIONLOSSON/THER!SSETSSOLDWRITTENOFFUNDER@/THER%XPENSESINTHE
3TATEMENTOF0ROlTAND,OSS
 60th Annual Report 2018-19 339

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  

Directors and others

Closing Balance 9414158922 

B. Terms/Rights attached to Equity Shares

Board of
 4HE(OLDING#OMPANYHASONLYONECLASSOFEQUITYSHARESHAVINGPARVALUEOF`EACHANDISENTITLEDTOONEVOTEPERSHARE4HE
DIVIDENDPROPOSEDBYTHE"OARDOF$IRECTORSISSUBJECTTOTHEAPPROVALOFTHESHAREHOLDERSINTHEENSUING!NNUAL'ENERAL-EETING
)NTHEEVENTOFLIQUIDATIONOFTHECORPORATIONTHEHOLDERSOFEQUITYSHARESWILLBEENTITLEDTORECEIVETHEREMAININGASSETSOFTHE
#OMPANYINPROPORTIONTOTHENUMBEROFEQUITYSHARESHELD

Directors’
C. Details of shareholders holdings more than 5% shares

Report
Name of Shareholder March 31, 2019 March 31, 2018

Discussion & Analysis

Number of Percentage of Number of Percentage
shares held Holding shares held of Holding

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"ALANCE3HEETDATETHE

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

AMOUNTNOTEXCEEDING`CRORES2UPEES&OUR4HOUSAND&OUR(UNDRED4HIRTY&IVE#ROREONLY REPRESENTINGOFTHETOTAL

PAIDUPEQUITYSHARECAPITALOFTHE#OMPANYATAPRICEOF`2UPEES/NE(UNDREDAND&ORTY.INE/NLY PEREQUITYSHARE4HE
Consolidated

PROCESSOFBUYBACKWASDULYCOMPLETEDON&EBRUARY
Statements
statements
Financial
 340 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 15 : OTHER EQUITY
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Retained Earnings
General Reserve:
As per last Account 80,126.93 
!DD2EMEASUREMENTOF$ElNED"ENElT0LANS (43.10) 
!DD4RANSFERFROM"OND2EDEMPTION2ESERVE 680.46 
,ESS 5TILIZED FOR )SSUE OF "ONUS 3HARES"UY "ACK OF 3HARES ;INCLUDING EXPENSES 4,442.80 
NETOFTAX =;)NCLUDES`297.65 crore.), TRANSFERREDTO#APITAL2EDEMPTION
2ESERVE=
!DD4RANSFERFROM)TEMSNOTRECLASSIlEDTO0ROlTOR,OSS - 
!DD!PPROPRIATIONFROM3URPLUS 5,141.45 
81,462.94 80,126.93
3URPLUS"ALANCEIN3TATEMENTOF0ROlTAND,OSS 
"ALANCE"ROUGHT&ORWARDFROM,AST9EARgS!CCOUNT 1,499.35 
0ROlTFORTHE9EAR 17,376.70 
!DD/PENING"ALANCE!DJUSTMENT - 
,ESS!PPROPRIATIONS
)NTERIM$IVIDEND 7,775.62 
&INAL$IVIDEND 1,895.88 
$IVIDEND$ISTRIBUTION4AXON
)NTERIM$IVIDEND 1,589.11 
&INAL$IVIDEND 439.87 
)NSURANCE2ESERVE.ET 17.61 
Bond Redemption Reserve 625.00 
Capital Reserve - 
#ORPORATE3OCIAL2ESPONSIBILITY2ESERVE.ET 0.04 
'ENERAL2ESERVE 5,141.45 
"ALANCECARRIEDFORWARDTONEXTYEAR 1,391.47 
82,854.41 81,626.28
Other Reserves:
Bond Redemption Reserve
As per last Account 3,226.85 
!DD!PPROPRIATIONFROM3URPLUS 625.00 
,ESS4RANSFERTO'ENERAL2ESERVE 680.46 
3,171.39 3,226.85
Capital Redemption Reserve
As per last Account 0.41  
!DD0ROVISIONDURINGTHEYEARONCONSOLIDATION 297.65 
,ESS4RANSFERTO'ENERAL2ESERVE - 
298.06 0.41
Capital Reserve
As per last Account 427.26 
!DD/N#ONSOLIDATION 6.84 
434.10 427.26
 60th Annual Report 2018-19 341

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 

Corporate Social Responsibility Reserve (refer Note - 45)

Description of
As per Last Account 0.78 

Capitals
!DD!PPROPRIATIONFROM3URPLUS 509.55 
,ESS5TILIZEDDURINGTHEYEAR 509.51 
0.82 0.78

Directors and others

Foreign Currency Monetary Item Translation Difference Account
As per Last Account (45.77) 

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

Discussion & Analysis

Fair value of Debt Instruments

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 15 : OTHER EQUITY (Contd...)
Nature and Purpose of Reserves
A. Retained Earnings
 4HERETAINEDEARNINGSCOMPRISESOFGENERALRESERVEANDSURPLUSWHICHISUSEDFROMTIMETOTIMETOTRANSFERPROlTSBYAPPROPRIATIONS
2ETAINEDEARNINGSISFREERESERVEOFTHECOMPANYANDISUSEDFORPURPOSESLIKEISSUINGBONUSSHARESBUYBACKOFSHARESANDOTHER
PURPOSESLIKEDECLARING$IVIDENDETC ASPERTHEAPPROVALOF"/$)TINCLUDESTHERE MEASUREMENTOFDElNEDBENElTPLANASPER
ACTUARIALVALUATIONSWHICHWILLNOTBERE CLASSIlEDTOSTATEMENTOFPROlTANDLOSSINSUBSEQUENTPERIODS
B. Bond Redemption Reserve
 !SPER#OMPANIES!CTA"OND2EDEMPTION2ESERVEISREQUIREDTOBECREATEDFORALLBONDSDEBENTURESISSUEDBYTHECOMPANY
ATASPECIlEDPERCENTAGE4HISRESERVEISCREATEDOUTOFAPPROPRIATIONOFPROlTSOVERTHETENUREOFBONDSANDWILLBETRANSFERREDBACK
TOGENERALRESERVEONREPAYMENTOFBONDSFORWHICHITISCREATED
C. Capital Redemption Reserve
 !SPER#OMPANIES!CTCAPITALREDEMPTIONRESERVEISCREATEDWHENCOMPANYPURCHASESITSOWNSHARESOUTOFFREERESERVES
ORSECURITIESPREMIUM!SUMEQUALTOTHENOMINALVALUEOFTHESHARESSOPURCHASEDISTRANSFERREDTOCAPITALREDEMPTIONRESERVE
5TILIZATIONOFTHISRESERVEISGOVERNEDBYTHEPROVISIONSOF#OMPANIES!CT
D. Capital Reserve
 #APITAL2ESERVEWASCREATEDTHROUGHBUSINESSCOMBINATIONSANDSHALLBEUTILISEDASPERTHEPROVISIONSOF#OMPANIES!CT
E. Securities Premium
 3ECURITIESPREMIUMRESERVEISUSEDTORECORDTHEPREMIUMONISSUEOFSHARES4HERESERVEISUTILISEDINACCORDANCEWITHTHEPROVISION
OFTHE#OMPANIES!CT
F. Insurance Reserve
 )NSURANCE2ESERVEISCREATEDBYTHECOMPANYWITHTHEAPPROVALOF"/$TOMITIGATERISKOFLOSSOFASSETSNOTINSUREDWITHEXTERNAL
INSURANCEAGENCIES `CROREISAPPROPRIATEDBYTHECOMPANYEVERYYEARTOTHISRESERVE4HERESERVEISUTILISEDTOMITIGATEACTUAL
LOSSESBYWAYOFNETAPPROPRIATIONINCASEANYUNINSUREDLOSSISINCURRED
' %XPORT0ROlT2ESERVE
 !MOUNTSETASIDEOUTOFPROlTSFROMEXPORTSFORAVAILINGINCOMETAXBENElTSUS((#OF)NCOME4AX!CTFORTHEASSESSMENTS
YEARS TO #REATIONOFRESERVEFORCLAIMINGDEDUCTIONUS((#WASDISPENSEDFROM!9 ONWARDS4HIS
AMOUNTSHALLBETRANSFERREDTOGENERALRESERVEONCOMPLETIONOFASSESSMENTDISPOSALOFCASE
H. Corporate Social Responsibility Reserve
 #ORPORATE3OCIAL2ESPONSIBILITY#32 2ESERVEISCREATEDFORMEETINGEXPENSESRELATINGTO#32ACTIVITIESINLINEWITH#32POLICY
I. Foreign Currency Monetary Item Translation Difference Account
 4HISRESERVEISCREATEDTOACCUMULATEANDAMORTISEEXCHANGEmUCTUATIONSON,ONG 4ERM-ONETARY)TEMSOTHERTHANTHOSERELATEDTO
DEPRECIABLE00% OVERTHEREMAININGLIFEOFTHESEITEMS4HISISASPERTHETRANSITIONEXEMPTIONTAKENBYTHECOMPANYATTHETIME
OFIMPLEMENTATIONOF)ND!3WHEREINTHECOMPANYHASCHOSENTOCONTINUETHEOLD'!!0PRACTICEFORITEMSUPTO-ARCH
J. Fair value of Equity Instruments
 4HISRESERVEREPRESENTSTHECUMULATIVEEFFECTOFFAIRVALUEmUCTUATIONSOFINVESTMENTSMADEBYTHECOMPANYINEQUITYINSTRUMENTSOF
OTHERENTITIES4HECUMULATIVEGAINORLOSSARISINGONSUCHCHANGESARERECOGNISEDTHROUGH/THER#OMPREHENSIVE)NCOME/#) AND
ACCUMULATEDUNDERTHISRESERVE4HISWILLNOTBERE CLASSIlEDTOTHESTATEMENTOFPROlTANDLOSSINSUBSEQUENTPERIODS
K. Fair value of Debt Instruments
 4HISRESERVEREPRESENTSTHECUMULATIVEEFFECTOFFAIRVALUEmUCTUATIONSINDEBTINVESTMENTSMADEBYTHECOMPANYWHICHARECLASSIlED
ASAVAILABLEFORSALEINVESTMENTS4HECUMULATIVEGAINORLOSSARISINGONSUCHCHANGESARERECOGNISEDTHROUGH/THER#OMPREHENSIVE
)NCOME/#) ANDACCUMULATEDUNDERTHISRESERVE4HISAMOUNTWILLBERE CLASSIlEDTOTHESTATEMENTOFPROlTANDLOSSINSUBSEQUENT
PERIODSONDISPOSALOFRESPECTIVEINSTRUMENTS
L. Cash Flow Hedge Reserve
 4HE CASH mOW HEDGING RESERVE REPRESENTS THE CUMULATIVE EFFECTIVE PORTION OF GAINS OR LOSSES ARISING ON CHANGES IN FAIR VALUE OF
DESIGNATEDPORTIONOFHEDGINGINSTRUMENTSENTEREDINTOFORCASHmOWHEDGES4HECUMULATIVEGAINORLOSSARISINGONSUCHCHANGESARE
RECOGNISEDTHROUGH/THER#OMPREHENSIVE)NCOME/#) ANDACCUMULATEDUNDERTHISRESERVE3UCHGAINSORLOSSESWILLBERECLASSIlED
TOSTATEMENTOFPROlTANDLOSSINTHEPERIODINWHICHTHEHEDGEDITEMOCCURSAFFECTSTHESTATEMENTOFPROlTANDLOSS
M. Translation Reserve on Consolidation
 4HEEXCHANGEDIFFERENCESARISINGFROMTHETRANSLATIONOFlNANCIALSTATEMENTSOFFOREIGNOPERATIONSWITHFUNCTIONALCURRENCYOTHER
THAN)NDIANRUPEESISRECOGNISEDTHROUGH/THER#OMPREHENSIVE)NCOME/#) ANDISPRESENTEDWITHINEQUITYINTHEFOREIGNCURRENCY
TRANSLATIONRESERVE
 60th Annual Report 2018-19 343

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 

Directors and others

Total Secured Loans 4,382.76 3,912.27 487.44 2,727.26

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

Discussion & Analysis

Institutions
)N&OREIGN#URRENCY,OANS H 18,903.03  3,376.90 

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

#URRENTMATURITIESINCLUDING&INANCE,EASE/BLIGATIONS ARECARRIEDTO.OTE /THER&INANCIAL,IABILITIES

Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
 344 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 16 : LONG TERM BORROWINGS (At Amortised Cost) (Contd...)
Secured Loans (Bonds : A - C)
Particulars Allotment Date Coupon Rate Date of Redemption Security Details
A "ONDS 3EPTEMBER  !FTERYEARS 4HESE WERE SECURED BY WAY OF REGISTERED MORTGAGE
OFFACEVALUEOF`  PAPAYABLE FROMTHEDATE OVER THE IMMOVABLE PROPERTIES OF THE #OMPANY IE
 EACH annually OFALLOTMENT &LATNO.ANIK.IWASOF3HYAM#O OP(OUSING
ONth 4HESEBONDSWERE 3OCIETY ,TD SITUATED AT "HULABHAI $ESAI 2OAD AT
September REDEEMEDDURING&9 -UMBAI TOGETHER WITH  SHARES OF THE SAID SOCIETY
  ANDIMMOVABLEPROPERTIESOFTHE#OMPANYAT0ANIPAT
2ElNERYSITUATEDAT0ANIPATINTHESTATEOF(ARYANA
B )NLINEWITHTHEREQUIREMENTOFTHE#OMPANIES3HARE#APITALAND$EBENTURES 2ULESTHE#OMPANYHASEARMARKED
/IL-ARKETING#OMPANIES'/)3PECIAL"ONDSOFFACEVALUEOFNIL`#RORE FORTOTALBONDSVALUEOFNIL
`CRORE MATURINGINTHENEXTlNANCIALYEAR
C .OSOF *ANUARY PA 0RINCIPALREPLAYABLE &IRSTCHANGEONSPECIlC0LANTMACHINERYALONGWITH
SECURED  payable ATTHEENDOF THE UNDERLYING LAND TOGETHER WITH ALL BUILDING 
Redeemable annually on YEARSFROMDATE STRUCTURES STANDING ON LAND TO THE EXTENT OF `
.ONCONVERTIBLE th*ANUARY OFALLOTMENT CRORE
debentures 4HESEBONDSWERE
3ERIES )) OF` REDEEMEDDURING&9
,AKHEACH  

D. Secured Term Loans

1. Security Details for OIDB Loans:
A  &IRST#HARGEONTHEFACILITIESAT0ARADIP2ElNERY/RISSA
B  &IRSTCHARGEONTHEFACILITIESAT"UTADIENE%XTRACTION5NIT0ANIPAT(ARYANA
C  &IRSTCHARGEONTHEFACILITIESAT&##5NITAT-ATHURA2ElNERY5TTAR0RADESH
D  &IRSTCHARGEONTHEFACILITIESAT0ARADIP 2AIPUR 2ANCHI0IPELINE
E  &IRSTCHARGEONTHEFACILITIESAT3-0,3YSTEM
F  &IRSTCHARGEONTHEFACILITIESAT0ARADIP (ALDIA $URGAPUR,0'0IPELINE
2. Loan Repayment Schedule against loans from OIDB (Secured)-Term Loans
` INCRORE
Sl. No. Repayable During Repayable Amount Range of Interest Rate
1     
2     
TOTAL 460.63

3. Repayment Schedule for Secured Rupee Term Loans

Sl. Particulars Allotment Coupon Rate Date of Redemption Security Details
No. Date
1 4ERM,OAN *ANUARY -ONTHS-#,2RESET 0RINCIPALREPAYABLE 0ARI PASSU lRST CHARGE BY WAY OF
FROM3TATE  ATHALFYEARLYINTERVELS ATTHEENDOFYEARS HYPOTHECATIONOFlXEDASSETSALONGWITHTHE
"ANKOF)NDIA FROM*ANUARY 3OUTH)NDIAN"ANK,TDIEAFTEREXCLUDING
BEINGDATEOF LAND AND BUILDING OF THE ENTIRE #OMPANY
AVAILMENT)NTEREST  ASSETS PERTAINING TO "3 6) PROJECT AND
payable monthly 2,.' PROJECTS  WITH A MINIMUM &IXED
!SSET#OVERAGE2ATIOOFTIMES
2 4ERM,OAN -ARCH  4HELOANWILLBEFORA &IRST -ORTGAGE AND CHARGE ON )MMOVABLE
FROM/IL  PERIODOFYEARSWITH PROPERTIES BOTH PRESENT AND FUTURE AND
Industry 1 year moratorium &IRST #HARGE BY WAY OF (YPOTHECATION ON
$EVELOPMENT and repayable in 4 -OVABLES INCLUDING MOVABLE MACHINERY
Board EQUALINSTALLMENTS MACHINERY SPARES TOOLS AND ACCESSORIES
Interest payable on PRESENT AND FUTURE PERTAINING TO 2,.'
Quarterly basis PROJECT
 60th Annual Report 2018-19 345

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

Directors and others

F. Repayment Schedule of Foreign Currency Bonds
Sl. No. Particulars of Bonds Date of Issue Date of Repayment
1 53$-ILLION2EG3BONDS *ANUARY 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE

Board of
2 53$MILLION2EG3BONDS !UGUST 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
3 3'$MILLION2EG3BONDS /CTOBER /NTHESAMEDAYCROSSCURRENCYSWAPAMOUNTINGTO53$
-ILLION0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
4 53$-ILLION2EG3BONDS !UGUST 0AYABLEAFTERYEARSFROMTHEDATEOFISSUE
G. Repayment Schedule of Senior Notes (Bank of America)
 53$-ILLION530RIVATE0LACEMENTBONDSISSUEDINFOURTRANCHESOF53$-ILLIONDT*UNE*ULY!UGUST

Directors’
Report
AND3EPTEMBERAREPAYABLEINTHREETRANCHESOF53$-ILLIONEACHON!UGUST!UGUST
AND!UGUST

Discussion & Analysis

H. Repayment Schedule of loans from Banks and Financial Institutions

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

11 53$-ILLIONSYNDICATIONLOAN 3EPTEMBER

12 53$-ILLIONSYNDICATIONLOAN *ANUARY
13 53$  -ILLION NOW 53$  SYNDICATION LOAN 53$ *UNE
financial

-ILLIONREPAIDON3EPTEMBER
Consolidated
Statements
statements
Financial
 346 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 16 : LONG TERM BORROWINGS (At Amortised Cost) (Contd...)
Sl. No. Particulars of Loans Date of Repayment
1 53$-ILLION4ERM,OAN 3EPEMBER
2 #!$-ILLION,OANFROM3") YEARFROMTHEDATEOFDRAWALOR-ARCHWHICHEVERISEARLIER
3 53MILLION YEARSFROMTHEDATEOFDRAWAL-ARCH IE-ARCH
I. Repayment Schedule of Unsecured Interest Free Loans from Govt of Odisha
 )NTEREST FREE LOAN GIVEN BY /DISHA 'OVERNMENT FOR  YEARS IS TO BE DISBURSED QUARTERLY INSTALMENT OF ` CRORE STARTING FROM
!PRILREPAYBLEAFTERYEARS4HElRSTINSTALMENTOFLOANFORTHEPERIOD!PRILTO$ECEMBEROF2SCROREHAS
BEEN RECEIVED ON *ANUARY   AND THEREAFTER ` CRORE WILL BE RECEIVED EVERY QUARTER 4OTAL LOAN DISBURSED TILL NOW IS
`CROREWHICHISREPAYABLEAFTERYEARSFROMTHEQUARTERFORWHICHTHESAMEISGIVENIEINQUARTERLYINSTALMENTSSTARTING
FROMLASTWEEKOF*UNEONWARDS4HISLOANBEINGINTERESTFREELOANISACCOUNTEDATFAIRVALUEANDACCORDINGLYACCOUNTINGFOR
GOVERNMENTGRANTISDONE

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

Directors and others

year year year** discount rate
$ECOMMISSIONING,IABILITY %0       
"LOCKS

Board of
TOTAL 169.43 887.36 - 12.67 33.76 1,077.88
0REVIOUS9EAR4OTAL      

)NCLUDESGAINONACCOUNTOFTRANSALATIONAMOUNTINGTO`6.99 crore (2018: Gain of `6.24 crore)

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       

Discussion & Analysis

3ALES4AX'34     

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 

%XPECTEDTIMINGOFOUTmOWISNOTASCERTAINABLEATTHISSTAGETHEMATTERSBEINGUNDERDISPUTECONTINGENT
Governance
Consolidated financial
Statements
statements
Financial
 348 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 19 : DEFERRED TAX LIABILITIES (NET)
(i) In compliance of Ind AS – 12 on “Income Taxes”, the item wise details of Deferred Tax Liability (net) are as under:
`IN#RORE
Particulars As on April Effects of Provided during the Provided Balance as
1, 2018 acquisition year in Statement of during the year on March 31,
of subsidiary 0ROlTAND,OSS
in OCI (net) 2019
Deferred Tax Liability:
2ELATEDTO&IXED!SSETS       23,270.61
&OREIGN#URRENCYGAINONLONGTERMMONETARYITEM       12.50
Total Deferred Tax Liability (A) 21,247.90 - 2,035.21 - 23,283.11
Deferred Tax Assets:
0ROVISIONON)NVENTORIES$EBTORS,OANSAND       1,020.64
!DVANCE)NVESTMENTS
#OMPENSATIONFOR6OLUNTARY2ETIREMENT3CHEME       9.38
"A IA OTHER$ISALLOWANCESETC      3,760.28
#ARRY&ORWARD"USINESS,OSSES5NABSORBED       304.67
$EPRECIATION
2EMEASUREMENTOFDElNEDBENElTPLAN       0.58
&AIRVALUATIONOF%QUITYINSTRUMENTS       (54.11)
-4-ON(EDGING)NSTRUMENTS        (11.85)
&AIRVALUEOFDEBTINSTRUMENTS       5.76
Others      (455.37)
Total Deferred Tax Assets (B) 7,064.47 (109.45) (1,852.30) (522.74) 4,579.98
MAT/ECS credit entitlement (C) - Net # 1,815.58 - 377.84 - 2,193.42
Deferred Tax Liability net of MAT Credit (A-B-C) 12,367.85 109.45 3,509.67 522.74 16,509.71
Ï)NCLUDESUTILISATIONOF `166.78 crore DURING&9 

)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

NOTE - 21 : BORROWINGS - CURRENT

`IN#RORE

Description of
Particulars March 31, 2019 March 31, 2018

Capitals
SECURED LOANS
Loans Repayable on Demand
From Banks: A

Directors and others

7ORKING#APITAL$EMAND,OAN 3,920.05 
Cash Credit 4,225.66 

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

Discussion & Analysis

,OANS2EPAYABLEON$EMAND

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 $EBTORS Report on Corporate
/UTSTANDINGMONIES2ECEIVABLES#LAIMS#ONTRACTS%NGAGEMENTSTO3")AND($&#"ANKS
" !GAINSTPLEDGINGOFFOLLOWINGTO##),
Governance

'OVERNMENT3ECURITIES 2,655.00 

"ANK'UARANTEES 1,650.00 
Consolidated financial
Statements
statements
Financial
 350 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 22 : TRADE PAYABLES
`IN#RORE
Particulars March 31, 2019 March 31, 2018
$UESTO-ICROAND3MALL%NTERPRISES 236.82 
$UESTO2ELATED0ARTIES 1,276.93 
$UESTO/THERS 39,680.37 
TOTAL 41,194.12 36,581.65
)NCLUDESAMOUNTRELATEDTO-ICROAND3MALL%NTERPRISESFORWHICHPAYMENTTOBEMADETOlNANCIALINSTITUTIONSINPURSUANCEOFBILLS
DISCOUNTEDBYTHEM

NOTE - 23 : REVENUE FROM OPERATIONS

`IN#RORE
Particulars 2018-19 2017-18
3ALES.ETOF$ISCOUNTS 6,07,524.57 
3ALEOF3ERVICES 115.86 
/THER/PERATING2EVENUES.OTEÑÑ 5,031.57 
6,12,672.00 5,12,271.34
.ET#LAIM3URRENDER OF33# 310.66 
3UBSIDY&ROM#ENTRAL3TATE'OVERNMENT 150.00 
'RANTFROM'OVERNMENTOF)NDIA 4,110.18 
TOTAL 6,17,242.84 5,15,541.89
0ARTICULARSRELATINGTO2EVENUE'RANTSAREGIVENIN.OTE 

NOTE - 23.1 : OTHER OPERATING REVENUES

`IN#RORE
Particulars 2018-19 2017-18
3ALEOF0OWERAND7ATER 430.66 
2EVENUEFROM#ONSTRUCTION#ONTRACTS 6.50 
5NCLAIMED5NSPENTLIABILITIESWRITTENBACK 317.27 
0ROVISIONFOR$OUBTFUL$EBTS!DVANCES#LAIMSAND3TORESWRITTENBACK 58.93 
0ROVISIONFOR#ONTINGENCIESWRITTENBACK 1,492.97 
2ECOVERIESFROM%MPLOYEES 13.37 
2ETAIL/UTLET,ICENSE&EES 1,187.82 
)NCOMEFROM.ON&UEL"USINESS 247.39 
#OMMISSIONAND$ISCOUNT2ECEIVED 2.95 
3ALEOF3CRAP 246.16 
)NCOMEFROM&INANCE,EASES 2.48 
!MORTIZATIONOF#APITAL'RANTS 99.99 
2EVENUE'RANTS 215.74 
#OMMODITY(EDGING'AIN.ET 27.58  
4ERMINALLING#HARGES 83.11 
Other Miscellaneous Income 598.65 
TOTAL 5,031.57 5,716.75
 60th Annual Report 2018-19 351

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 

Directors and others

863.30 735.09
0ROlTON3ALEOF)NVESTMENTS.ET C - 

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

Discussion & Analysis

!)NCLUDES4AX$EDUCTEDAT3OURCE 24.62 

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

.ON #URRENT)NVESTMENTS 845.86 

#)NCLUDES'AIN,OSS RECLASSIlEDFROM&AIR6ALUEOF$EBT)NSTRUMENTS2ESERVE - 
Consolidated financial
Statements
statements
Financial
 352 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 25 : COST OF MATERIALS CONSUMED
`IN#RORE
Particulars 2018-19 2017-18
/PENING3TOCK 28,342.80 
!DD0URCHASES 3,08,657.50 
3,37,000.30 
,ESS#LOSING3TOCK 30,528.08 
TOTAL 3,06,472.22 2,17,267.64
0ARTICULARSRELATINGTO2EVENUE'RANTSADJUSTEDINPURCHASESAREGIVENIN.OTE 

NOTE - 26 : CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND STOCK IN PROCESS

`IN#RORE
Particulars 2018-19 2017-18
Closing Stock
&INISHED0RODUCTS 25,953.37 
3TOCKIN0ROCESS 6,366.96 
3TOCK IN TRADE 9,952.84 
42,273.17 38,727.58
,ESS
Opening Stock
&INISHED0RODUCTS 24,390.14 
3TOCKIN0ROCESS 5,442.23 
3TOCK IN 4RADE 8,895.21 
38,727.58 40,189.93
NET INCREASE/(DECREASE) 3,545.59 (1,462.35)

NOTE - 27 : EMPLOYEE BENEFITS EXPENSE

`IN#RORE
Particulars 2018-19 2017-18
3ALARIES7AGES"ONUSETC 7,446.49 
#ONTRIBUTIONTO0ROVIDENT/THER&UNDS 2,425.70 
6OLUNTARY2ETIREMENT#OMPENSATION 1.49 
3TAFF7ELFARE%XPENSES 1,722.60 
TOTAL 11,596.28 10,680.70
! )NCLUDES`11.62 crore`CRORE TOWARDSCOMPENSATIONTOEXECUTIVESFORWORKINGINSHIFTDUTYINTHEPLANTOPERATIONAREA
ONWHICHTHE(OLDING#OMPANYHASTAKENUPTHEMATTERWITH-/0.'$0%4HISALLOWANCEHASBEENDISCONTINUEDWEF.OVEMBER

" %XCLUDES` 400.72 crore`CRORE INCLUDEDINCAPITALWORKINPROGRESS.OTE  INTANGIBLEASSETSUNDERDEVELOPMENT
.OTE  AND`21.92 crore `CRORE INCLUDEDIN#32EXPENSES.OTE  4HEAMOUNTINCLUDEDINCAPITRALWORK
in progress also includes `0.28 crore `CRORE PAIDTOEXECUTIVESAS0ROJECT!LLOWANCEWORKINGINGRASSROOTPROJECTS
TILLCOMMERCIALPRODUCTIONWHERETHE(OLDING#OMPANYHASTAKENUPTHEMATTERWITH-/0.'4HEPROJECTALLOWANCEHASBEEN
DISCONTINUEDWEF-ARCH
# )NCLUDES`1,266.52 croreTOWARDS3!"&DElNEDBENElTCONTRIBUTIONFORTHETRANSITIONPHASEARISINGASON*ANUARYREFER
.OTE  
$ )NCLUDES`555.18 crore.), ;)NCLUDINGACTURIALLIABILITYOF`475.90.), =FORFELICITATIONAWARDTORETIREDEMPLOYEES
REFER.OTE 
% $ISCLOSUREINCOMPLIANCEWITH)NDIAN!CCOUNTING3TANDARD ONh%MPLOYEE"ENElTSvISGIVENIN.OTE 
 60th Annual Report 2018-19 353

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 

Directors and others

Others 449.79 
466.90 1,147.94
4,011.97 3,529.57

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

Discussion & Analysis

Particulars 2018-19 2017-18
#ONSUMPTION

Management’s
A 3TORES3PARESAND#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
4HROUGHPUT0ROCESSING"LENDING&EES2OYALTYAND/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

&REIGHT4RANSPORTATION#HARGESAND$EMURRAGE 13,417.59 

/FlCE!DMINISTRATION3ELLINGAND/THER%XPENSES.OTEÑÑ 10,307.83 
TOTAL 40,034.07 32,969.99
financial

,ESS#OMPANYgSUSEOFOWN0RODUCTSAND#RUDE 805.07 

39,229.00 32,324.92
TOTAL (Net) 39,229.00 32,324.92
Consolidated
Statements
statements
Financial
 354 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 29.1: OFFICE, ADMINISTRATION, SELLING AND OTHER EXPENSES
`IN#RORE
Particulars 2018-19 2017-18
Rent 1,138.38 
Insurance 169.17 
2ATES4AXES 204.50 
$ONATION 5.71 
0AYMENTTOAUDITORS
As Auditors 4.78 
&OR4AXATION-ATTERS 0.51 
/THER3ERVICESFORISSUINGOTHERCERTIlCATESETC 1.65 
&ORREIMBURSEMENTOFEXPENSES 0.32 
7.26 
4RAVELLING#ONVEYANCE 745.43 
#OMMUNICATION%XPENSES 60.22 
0RINTING3TATIONERY 43.01 
%LECTRICITY7ATER 388.65 
"ANK#HARGES 37.43 
!DVANCES#LAIMSWRITTENOFF 6.34 
0ROVISION,OSSON!SSETSSOLDORWRITTENOFF.ET 169.40 
4ECHNICAL!SSISTANCE&EES 42.29 
%XCHANGE&LUCTUATIONNET 1,740.94  
0ROVISIONFOR$OUBTFUL$EBTS!DVANCES#LAIMS#7)03TORESETC 1,090.38 
3ECURITY&ORCE%XPENSES 802.83 
3ALES0ROMOTION%XPENSES)NCLUDING#OMMISSION 476.94 
(ANDLING%XPENSES 580.52 
#OMMODITY(EDGING,OSSES.ET - 
4ERMINALLING#HARGES 11.66 
%XPLORATION0RODUCTION#OST 988.25 
!MORTISATIONOF&#-ONETARY)TEM4RANSLATION 148.39 
,OSSON3ALEOF)NVESTMENTS.ET 1.60  
%XPENSESON#ONSTRUCTION#ONTRACTS 6.37 
%XPENSESON#32!CTIVITIES 509.51 
4RAINING%XPENSES 95.53 
,EGAL%XPENSES0AYMENT4O#ONSULTANTS 184.05 
.OTICESAND!NNOUNCEMENT 39.77 
!DVERTISEMENTAND0UBLICITY 82.87 
0OLLUTION#ONTROL%XPENSES 82.90 
-ISCELLANEOUS%XPENSES 447.53 
TOTAL 10,307.83 6,368.03
 60th Annual Report 2018-19 355

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 

Directors and others

'AIN,OSS ON(EDGING)NSTRUMENTS 24.12  
4RANSLATION2ESERVEON#ONSOLIDATION (276.52) 
3HAREOF*OINT6ENTURESANDASSOCIATESIN4RANSLATION2ESERVEON#ONSOLIDATION (6.44) 

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

Discussion & Analysis

TOTAL (2,661.40) 938.16

Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
 356 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE–31 : DISTRIBUTIONS MADE AND PROPOSED
`IN#RORE
March 31, 2019 March 31, 2018
Cash dividends on Equity Shares declared:
Final dividend
4OTAL&INALDIVIDENDDURINGTHECURRENTYEARFOR-ARCH`PERSHARE 1,942.36 
-ARCH`PERSHAREAFTERRESTATEMENTFORBONUSSHARES 
,ESS&INAL$IVIDENDPERTAININGTO)/#3HARETRUST2EFER.OTE  46.62 
Final dividend net of IOC share trust 1,895.74 473.93
$$4ONlNALDIVIDEND 396.18 
Interim dividend
4OTAL)NTERIMDIVIDENDFOR-ARCH`8.25 per share-ARCH` 7,967.60 
PERSHAREAFTERRESTATEMENTOFBONUSSHARES 2EFER.OTE
,ESS)NTERIM$IVIDENDPERTAININGTO)/#3HARETRUST2EFER.OTE  192.32 
Interim dividend net of IOC share trust 7,775.28 9,004.76
$$4ONINTERIMDIVIDEND 1,589.11 
TOTAL 11,656.31 11,399.86
Proposed dividends on Equity shares
&INALPROPOSEDDIVIDENDFOR-ARCH`1.00 per share-ARCH` 941.42 
PERSHARE
,ESS0ROPOSED$IVIDENDPERTAININGTO)/#3HARETRUST2EFER.OTE  23.31 
Final proposed dividend net of IOC share trust 918.11 1,895.74
$$4ONPROPOSEDDIVIDEND 193.51 
1,111.62 2,295.00
Notes:
 0ROPOSED DIVIDEND ON EQUITY SHARES ARE SUBJECT TO APPROVAL AT THE ANNUAL GENERAL MEETING AND ARE NOT RECOGNISED AS A LIABILITY
INCLUDING$$4THEREON ASAT-ARCH
 3HARESHELDUNDER)/#3HARE4RUSTOFFACEVALUE`233.12 crore`CRORE HASBEENNETTEDOFFFROMPAIDUPCAPITAL
 4HE#OMPANYHASALSOINCURREDEXPENSESONDISTRIBUTIONOFlNALDIVIDENDAMOUNTINGTO`0.14 crore`CRORE ANDON
DISTRIBUTIONOFINTERIMDIVIDENDAMOUNTINGTO`0.34 crore`CRORE WHICHHASBEENDEBITEDTOEQUITY
 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#OMPANY4HE#OMPANYBOUGHT
BACK4WENTY.INE#RORES3EVENTY3IX,AKH&IFTY/NE4HOUSANDAND3IX EQUITYSHARESOUTOFTHESHARESTHATWERE
TENDEREDBYELIGIBLESHAREHOLDERSANDTHESHARESBOUGHTBACKWERECANCELLEDANDEXTINGUISHEDON&EBRUARY
 60th Annual Report 2018-19 357

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 

Directors and others

Notes
 %QUITY3HARESHELDUNDER)/#3HARE4RUSTOFFACEVALUE`233.12 crore HASBEENNETTEDOFFFROMWEIGHTEDAVERAGENUMBEROF%QUITY
3HARESAND%03ISWORKEDOUTACCORDINGLY

Board of
 4HE"OARDOF$IRECTORSOFTHE'ROUPATITSMEETINGHELDON$ECEMBERHADAPPROVEDAPROPOSALTOBUYBACKUPTO
4WENTY.INE#RORES3EVENTY3IX,AKHS&IFTY/NE4HOUSANDAND3IX %QUITY3HARESOFTHE'ROUP4HE'ROUPBOUGHTBACK
4WENTY.INE#RORES3EVENTY3IX,AKH&IFTY/NE4HOUSANDAND3IX %QUITY3HARESOUTOFTHESHARESTHATWERETENDEREDBYELIGIBLE
SHAREHOLDERSANDTHESHARESBOUGHTBACKWERECANCELLEDANDEXTINGUISHEDON&EBRUARY!CCORDINGLYEARNINGSPERSHARE
%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

NOTES TO FINANCIAL STATEMENTS

NOTE – 33A : GROUP INFORMATION AND MATERIAL PARTLY-OWNED SUBSIDIARIES
Information about subsidiaries
4HECONSOLIDATEDlNANCIALSTATEMENTSOFTHE'ROUPINCLUDESSUBSIDIARIESLISTEDINTHETABLEBELOW

Name Principal Activities Country of Equity Interest

Incorporation March 31, 2019 March 31, 2018
#HENNAI0ETROLEUM#ORPORATION 2ElNINGOFPETROLEUMPRODUCTS India 51.89% 
Limited
)NDIAN#ATALYST0RIVATE,IMITED -ANUFACTURINGOF&##CATALYSTADDITIVE India 100.00% 
)NDIAN/IL-AURITIUS ,TD 4ERMINALLING2ETAILING!VIATIONREFUELLING Mauritius 100.00% 
,ANKA)/#0,# 2ETAILING4ERMINALLING"UNKERING 3RI,ANKA 75.12% 
)/#-IDDLE%AST&:% ,UBEBLENDINGMARKETINGOFLUBRICANTS 5!% 100.00% 
)/#3WEDEN!" )NVESTMENTCOMPANYFOR%00ROJECTIN 3WEDEN 100.00% 
6ENEZUELA
)/#,53! )NC 0ARTICIPATIONIN3HALE'AS!SSET0ROJECT 53! 100.00% 
)ND/IL'LOBAL"6 )NVESTMENTCOMPANYFOR%00ROJECTIN#ANADA .ETHERLANDS 100.00% 
)/#,3INGAPORE04%,IMITED )NVESTMENTCOMPANYFOR%00ROJECTIN2USSIA Singapore 100.00% 

The Holding Company

52.18%OFTOTALSHARESAREHELDBY0RESIDENTOF)NDIAASAT-ARCH-ARCH
Material partly-owned subsidiaries
&INANCIALINFORMATIONOFSUBSIDIARIESTHATHAVEMATERIALNON CONTROLLINGINTERESTSISPROVIDEDBELOW
1. Proportion of equity interest held by non-controlling interests:
Name Country of March 31, 2019 March 31, 2018
incorporation
#HENNAI0ETROLEUM#ORPORATION,IMITED India 48.11% 
,ANKA)/#0,# 3RI,ANKA 24.88% 

2. Information regarding non-controlling interest:

`IN#RORE
March 31, 2019 March 31, 2018
!CCUMULATEDBALANCESOFMATERIALNON CONTROLLINGINTEREST
#HENNAI0ETROLEUM#ORPORATION,IMITED 1,662.91 
,ANKA)/#0,# 214.45 
0ROlTLOSS ALLOCATEDTOMATERIALNON CONTROLLINGINTEREST
#HENNAI0ETROLEUM#ORPORATION,IMITED (98.80) 
,ANKA)/#0,# (4.05) 
 60th Annual Report 2018-19 359

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

Directors and others

March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
2EVENUE&ROM/PERATIONS 52,201.22  3,592.21 
Other Income 37.20  21.07 

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  -  

Discussion & Analysis

/THER%XPENSES 1,148.09  101.48 

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

3. Summarised Cash Flow Information:

`IN#RORE
Governance

Chennai Petroleum Corporation Limited Lanka IOC PLC

March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Operating Activities (143.71)  (186.27) 
financial

Investing Activities (1,273.27)  304.76 

&INANCING!CTIVITIES 1,417.11  (125.67) 
Consolidated

#URRENCY4RANSLATION$IFFERENCE -   (0.71) 

Statements
statements
Financial

.ETINCREASEDECREASE IN#ASHAND#ASH%QUIVALENTS 0.13  (7.89) 

 360 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 33 B : INTEREST IN JOINT VENTURE & ASSOCIATES
A. Details of Interest in Joint Venture & Associates is as under:
Name of entity Place of Business % of Ownership Carrying Amount
Interest (` in crore)
Joint Venture
)NDIAN/ILTANKING,IMITEDFORMERLYKNOWNAS)/4)NFRASTRUCTURE%NERGY India  
3ERVICES,IMITED
,UBRIZOL)NDIA0RIVATE,IMITED India  
)NDIAN/IL0ETRONAS0RIVATE,IMITED India  
'REEN'AS,IMITED India  
)NDIAN/IL3KYTANKING0RIVATE,IMITED India  
3UNTERA.IGERIA,TD .IGERIA   
$ELHI!VIATION&UEL&ACILITY0RIVATE,IMITED India  
)NDIAN3YNTHETIC2UBBER0RIVATE,IMITED India  
)NDIAN/IL2UCHI"IOFUELS,,0UNDER)NSOLVENCY2ESOLUTIONPROCESS India   
.0#), )NDIAN/IL.UCLEAR%NERGY#ORPORATION,IMITED India  
'30,)NDIA4RANSCO,IMITED India  
'30,)NDIA'ASNET,IMITED India  
)NDIAN/IL!DANI'AS0RIVATE,IMITED India  
-UMBAI!VIATION&UEL&ARM&ACILITY0RIVATE,IMITED India  
+OCHI3ALEM0IPELINES0RIVATE,IMITED India  
)NDIAN/IL,.'0RIVATE,IMITED India  
)NDIAN/IL0ANIPAT0OWER#ONSORTIUM,IMITED India   
0ETRONET#),IMITEDUNDERLIQUIDATION India   
(INDUSTAN5RVARAKAND2ASAYAN,IMITED India  
2ATNAGIRI2ElNERY0ETROCHEMICALS,IMITED India  
)NDRADHANUSH'AS'RID,IMITED India  
Associates
!VI /IL)NDIA0RIVATE,IMITED India  
0ETRONET6+,IMITED India  
0ETRONET,.',IMITED India  
0ETRONET)NDIA,IMITEDUNDERLIQUIDATION India  
Note
4HElNANCIALSOF*OINT/PERATIONSASMENTIONEDIN.OTEHAVEBEENINCLUDEDINTHElNANCIALSTATEMENTSOF)NDIAN/IL#ORPORATION,TD
3UBSIDIARY#OMPANIESANDINRESPECTOFOTHER*OINT6ENTURES!SSOCIATESOF3UBSIDIARY#OMPANIESTHESAMEHASBEENINCLUDEDINTHE
lNANCIALSTATEMENTSOFRESPECTIVESUBSIDIARYCOMPANY
 60th Annual Report 2018-19 361

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 

Directors and others

)"3UMMARISED3TATEMENTOF0ROlTAND,OSSOF-S)NDIAN/ILTANKING,IMITED
`IN#RORE
Particulars March 31, 2019 March 31, 2018

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

Discussion & Analysis

Tax expense:
#URRENT4AX 2.24 

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

Current assets 865.93 

Current liabilities 156.56 
.ON CURRENTASSETS 804.16 
financial

.ON CURRENTLIABILITIES 157.57 

Net assets 1,355.96 1,163.99
Consolidated
Statements

Proportion of the Group’s ownership 677.99 582.00

statements
Financial

Carrying amount of the investment 605.74 509.74

 362 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 33 B : INTEREST IN JOINT VENTURE & ASSOCIATES (Contd...)
4HEABOVEAMOUNTSOFASSETSANDLIABILITIESINCLUDETHEFOLLOWINGS
Cash and cash equivalents 15.99 
#URRENT&INANCIAL,IABILITIES 131.04 
.ON CURRENTlNANCIALLIABILITIES 50.08 

))"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 

B1. Summarised Financials of Material Associates:

I. Summarised Balance Sheet of M/s Petronet LNG Limited:
`IN#RORE
Particulars March 31, 2019 March 31, 2018
Current assets 5,961.80 
Current liabilities 2,484.36 
.ON CURRENTASSETS 9,287.54 
.ON CURRENTLIABILITIES 2,534.40 
Net assets 10,230.58 9,811.29
Proportion of the Group’s ownership 1,278.82 1,226.41
Carrying amount of the investment 1,278.82 1,226.41

The above amounts of assets and liabilities include the followings

Cash and cash equivalents 226.58 
#URRENT&INANCIAL,IABILITIES 1,980.60 
.ON CURRENTlNANCIALLIABILITIES 101.20 
 60th Annual Report 2018-19 363

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

Directors and others

Other Comprehensive Income (2.03) 
Total Comprehensive Income 2,228.53 2,110.96
Group's Share in above:

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

Discussion & Analysis

Carrying Amount of Investments

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

Contingent Liabilities 702.82 

Consolidated
Statements
statements
Financial
 364 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 34 : INTEREST IN JOINT OPERATIONS
Name Principle place of business Proportion of Ownership Interest
A. The Group’s interest in Joint Operations is as under: March 31, 2019 March 31, 2018
E&P BLOCKS
 -. /3. Ï India 20.00% 
 !! /..  India 20.00% 
 '+ /3.  India 25.00% 
 '+ /3.  India 30.00% 
 #" /.. Ï India 20.00% 
 !!0 /.  India 29.03% 
 !! /.$3& 5-!4!2! 
India 90.00%
 "+ #"-  India 20.00% 
 .+ #"-  India 20.00% 
 &!23)",/#+)2!.> Iran 40.00% 
 ,)"9!",/#+Ï Libya 50.00% 
 ,)"9!",/#+Ï Libya 50.00% 
 3(!+4()'!"/. 'ABON 50.00% 
 !2%! ^ Libya 25.00% 
 .ORTH-ONTNEY*OINT6ENTURE Canada 10.00% 
 .IOBRARA3HALE0ROJECT 53! 10.00% 
 -UKHAIZNA/IL&IELD Oman 17.00%
OTHERS
 ).$/),.ETHERLANDS"6ÏÏ .ETHERLANDS 50.00% 
 0ETROLEUM)NDIA)NTERNATIONAL India 36.36% 

4HE2EVENUE3HARING#ONTRACT23# FORBLOCK!! /.$3& 5-!4!2! UNDER$ISCOVERED3MALL&IELDS$3& 2OUND))HASBEEN

SIGNEDON-ARCHWITH'OVTOF)NDIA
>4HEPROJECTSEXPLORATIONPERIODENDEDON*UNE.EGOTIATIONSWITH)RANIAN!UTHORITIESAREINPROGRESSFORDEVELOPMENTOFTHE
"LOCK
Ï"LOCKSAREUNDERRELINQUISHMENT
^5NDER&ORCE-AJEURESINCE-AY
%XPLORATION,ICENSEEXPIREDON/CTOBER#ONSORTIUMHASREQUESTED$IRECTORATE'ENERALOF(YDROCARBON$'( FOR!PPRAISAL
PHASEHOWEVERVIDELETTERDATED-ARCHITWASOPINEDTOCARRYOUT%XPLORATIONACTIVITYINSTEADOF!PPRAISALWORK
ÏÏ)/#3WEDEN!"THROUGHITS*6).$/),.ETHERLENDS"6HASINVESTEDIN0ETROCARABOBOPROJECTTHEOUTCOMEOFTHISINVESTMENTMAY
GETDELAYEDDUETOTHEPOLITICALANDECONOMICSITUATIONIN6ENEZUELA
 60th Annual Report 2018-19 365

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

Directors and others

%XPENDITUREWRITTENOFFINCLEXPLORATIONRELATED 0.53 
/THER#OSTSINCLEXPLORATIONRELATED 2,155.64 
Commitments 797.28 782.45

Board of
Contingent Liabilities - -

Note – 35 : DISCLOSURE RELATING EXPLORATION AND PRODUCTION ACTIVITIES

!)NCOMPLIANCEOF)ND!3 ONh%XPLORATIONAND%VALUATIONOF-INERAL2ESOURCESvTHEDISCLOSUREOFlNANCIALINFORMATIONRELATINGTO

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

Discussion & Analysis

(i) Assets 242.73 204.92

Management’s
0ROPERTY0LANTAND%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

%XPLORATIONEXPENDITUREWRITTENOFF 0.09 

/THEREXPLORATIONCOSTS 71.47 
(v) Cash Flow
financial

- Net Cash from/(used) in operating activities (49.51) (24.52)

- Net Cash from/(used) in investing activities (42.73) 82.63
Consolidated
Statements
statements
Financial
 366 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 35 : DISCLOSURE RELATING EXPLORATION AND PRODUCTION ACTIVITIES (Contd...)
B: In compliance of revsied Guidance Note on Accounting for Oil and Gas Producing Activities, the required disclosures in respect of
Reserves are as under:
.ET0ROVED2ESERVESOF#RUDE/IL#ONDENSATE.ATURAL'AS,IQUIDSAND'AS
Assets March 31, 2019 March 31, 2018
Crude Oil, Natural Gas Crude Oil, Natural Gas
Condensate, NGLs Condensate, NGLs
TMT Million Cubic Meter TMT Million Cubic Meter
A) Proved Reserves
.IOBRARA3HALE0ROJECT53! Begining 106.41 19.54  
Addition 156.29 62.54  
$EDUCTION - -  
0RODUCTION 17.45 9.76  
Balance 245.25 72.32 106.41 19.54
0ACIlC.ORTHWEST,.'#ANADA Begining 682.96 8163.29  
Addition 331.14 597.44  
$EDUCTION - -  
0RODUCTION 26.13 460.09  
Balance 987.97 8300.64 682.96 8163.29
Oman Begining - -  
Addition 9092.01 -  
$EDUCTION 126.22 -  
0RODUCTION 987.14 -  
Balance 7978.65 -  
!SSAM!!0 /.  Begining 47.42 1715.26  
Addition 32.04 -  
$EDUCTION - -  
0RODUCTION 10.00 94.21  
Balance 69.46 1621.05 47.42 1715.26
Total Proved Reserves 9281.33 9994.01 836.79 9898.09

B) Proved developed Reserves

.IOBRARA3HALE0ROJECT53! Begining 69.79 13.71  
Addition 18.05 20.74  
$EDUCTION - -  
0RODUCTION 17.45 9.76  
Balance 70.39 24.69 69.79 13.71
0ACIlC.ORTHWEST,.'#ANADA Begining 232.80 3388.44  
Addition (19.11) (113.09)  
$EDUCTION - -  
0RODUCTION 26.13 460.09  
Balance 187.56 2815.26 232.80 3388.44
Oman Begining - -  
Addition 8335.55 -  
$EDUCTION - -  
0RODUCTION 987.14 -  
Balance 7348.41 - - -
!SSAM!!0 /.  Begining 47.42 1369.16  
Addition 32.04 346.10  
$EDUCTION - -  
0RODUCTION 10.00 94.21  
Balance 69.46 1621.05 47.42 1369.16
Total Proved developed Reserves 7675.82 4461.00 350.01 4771.31
 60th Annual Report 2018-19 367

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

Directors and others

53 70.39 24.69  
Canada 187.56 2815.26  

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&ORTHEPURPOSEOFESTIMATIONOF0ROVEDAND0ROVEDDEVELOPEDRESERVESDETERMINISTICMETHODISUSEDBYTHECOMPANY
4HEANNUALREVISIONOFESTIMATESISBASEDONTHEYEARLYEXPLORATORYANDDEVELOPMENTACTIVITIESANDRESULTSTHEREOF

Discussion & Analysis

Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
 368 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 36 : EMPLOYEE BENEFITS
$ISCLOSURESINCOMPLIANCEWITH)ND !SONh%MPLOYEE"ENElTSvISASUNDER
! $ElNED#ONTRIBUTION0LANS 'ENERAL$ESCRIPTION
Provident Fund (EPS-95)
 $URINGTHEYEARTHE'ROUPHASRECOGNISED`39.56 crore`CRORE ASCONTRIBUTIONTO%03 INTHE3TATMENTOF0ROlT
AND,OSS#7)0INCLUDEDIN#ONTRIBUTIONTO0ROVIDENTAND/THER&UNDSIN.OTE #ONSTRUCTIONPERIODEXPENSESIN.OTE  
Pension Scheme
 $URINGTHEYEARTHE'ROUPHASRECOGNISED`496.73 crore`CRORE TOWARDS$ElNED#ONTRIBUTORY%MPLOYEES0ENSION
3CHEMEINTHE3TATMENTOF0ROlTAND,OSS#7)0INCLUDEDIN#ONTRIBUTIONTO0ROVIDENTAND/THER&UNDSIN.OTE #ONSTRUCTION
PERIODEXPENSESIN.OTE  
 &URTHERDURINGTHEYEARANAMOUNTOF `1,266.52 croreHASBEENCONTRIBUTEDBYPARENTCOMPANYONONETIMEBASISTOWARDS$ElNED
"ENElTCONTRIBUTIONFORTHETRANSITIONPHASEARISINGASON*ANUARYIEATTHETIMEOFCOMMENCEMENTOF$ElNED#ONTRIBUTION
PENSIONSCHEME
" $ElNED"ENElT0LANS 'ENERAL$ESCRIPTION
Provident Fund:
4HE'ROUPSCONTRIBUTIONTOTHE0ROVIDENT&UNDISREMITTEDTOSEPARATEPROVIDENTFUNDTRUSTSESTABLISHEDFORTHISPURPOSEBASEDONA
lXEDPERCENTAGEOFTHEELIGIBLEEMPLOYEESSALARYANDCHARGEDTO3TATEMENTOF0ROlTAND,OSS3HORTFALLIFANYINTHEFUNDASSETS
BASEDONTHE'OVERNMENTSPECIlEDMINIMUMRATEOFRETURNWILLBEMADEGOODBYTHE'ROUP4HE'ROUPHASTHREE0ROVIDENT&UNDS
MAINTAINEDBYRESPECTIVE0&4RUSTSINRESPECTOFWHICHACTUARIALVALUATIONISCARRIEDOUTANDALLTHREETRUSTSDONOTHAVEANYDElCIT
ASON-ARCH
Gratuity:
 %ACHEMPLOYEERENDERINGCONTINUOUSSERVICEOFYEARSORMOREISENTITLEDTORECEIVEGRATUITYAMOUNTEQUALTOOFTHEEILIGIBLE
SALARYFOREVERYCOMPLETEDYEAROFSERVICESUBJECTTOMAXIMUMOF`0.20 croreATTHETIMEOFSEPARATIONFROMTHECOMPANY"ESIDES
THECEILINGOFGRATUITYINCREASESBYWHENEVER)$!RISESBY
Post Retirement Medical Scheme (PRMS):
 02-3PROVIDESMEDICALBENElTTORETIREDEMPLOYEESANDELIGIBLEDEPENDANTFAMILYMEMBERS
Resettlement Allowance:
 2ESETTLEMENTALLOWANCEISPAIDTOEMPLOYEESTOPERMANENTLYSETTLEDOWNATAPLACEOTHERTHANTHELOCATIONOFLASTPOSTINGATTHETIME
OFRETIREMENT
Ex gratia:
 %X GRATIAISPAYABLETOTHOSEEMPLOYEESWHOHAVERETIREDBEFORE.OVEMBERANDNOTCOVEREDUNDERTHEPENSIONSCHEME
&URTHERFOREMPLOYEESWHOHAVERETIREDONORAFTER.OVEMBERANDTHEIRENTITLEMENTUNDERTHEPENSIONSCHEMEISLESSTHAN
APPLICABLEAMOUNTUNDER%X 'RATIA3CHEMESUCHEMPLOYEESAREALSOELIGIBLETOTHEEXTENTOFSHORTFALLORDIFFERENCEUNDER%X GRATIA
SCHEME4HESCHEMEOFEX GRATIAHASBEENRESTRICTEDTOCOVERONLYTHOSEELIGIBLEEMPLOYEESWHOHAVERETIREDUPTO$ECEMBER
ANDNOTTHEREAFTER
Staff Pension fund at AOD:
 4HE&UNDISMAINTAINEDFORDISBURSEMENTOFPENSIONTO/FlCERSWHOHAVEJOINEDERSTWHILE!SSAM/IL#OMPANYBEFORE/CTOBER
ANDOPTEDTOCONTINUETHEBENElTOFPENSIONASEXISTINGPRIORTOTAKEOVER4HE'ROUPISMANAGINGTHEFUNDAFTERTAKEOVEROF
THEERSTWHILE!SSAM/IL'ROUPINTHENAMEOF)/#,!/$ 3TAFF0ENSION&UND
Workmen Compensation:
 4HE'ROUPPAYSANEQUIVALENTAMOUNTOFMONTHSSALARYTOTHEFAMILYMEMBEROFTHEEMPLOYEEIFEMPLOYEEDIESWHILEHEISON
DUTY4HISSCHEMEISNOTFUNDEDBYTHE'ROUP4HELIABILITYORIGINATESOUTOFTHE7ORKMENCOMPENSATION!CTAND&ACTORY!CT
Felicitation of Retired Employees:
 4HEPARENTCOMPANYHASINTRODUCEDASCHEMETOPAYSPECIlEDAMOUNTASFELICITATIONAWARDTOITSRETIREDEMPLOYEESONACHIEVING
SPECIlCAGEMILESTONES`555.18 croreHASBEENREGOGNISEDASEXPENSESINCLUDINGACTURIALLIABILITYOF`CRORE DURINGTHE
YEARONTHISACCOUNT
 60th Annual Report 2018-19 369

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)NADDITIONEACHEMPLOYEEIS
ENTITLEDTOGETSICKLEAVESINLIEUOF(0, ATTHEENDOFEVERYSIXMONTHS4HEENTIREACCUMULATIONISPERMITTEDFORENCASHMENT
ONLYATTHETIMEOFRETIREMENT$0%HADCLARIlEDTHATSICKLEAVECANNOTBEENCASHEDTHOUGH%ARNED,EAVE%, AND(ALF0AY,EAVE

About IndianOil
(0, COULDBECONSIDEREDFORENCASHMENTONRETIREMENTSUBJECTTOTHEOVERALLLIMITOFDAYS-/0.'HASADVISEDTHECOMPANY
TOCOMPLYWITHTHE$0%'UIDELINES(OWEVERKEEPINGINVIEWOPERATIONALCOMPLICATIONSANDSERVICEAGREEMENTSTHECOMPANYHAS
CONTINUEDWITHTHEPRESENTPRACTICEANDREQUESTEDCONCERNEDAUTHORITIESTORECONSIDERTHEMATTER
Long Service Award:
 /NCOMPLETIONOFSPECIlEDPERIODOFSERVICEWITHTHECOMPANYANDALSOATTHETIMEOFRETIREMENTEMPLOYEESAREREWARDEDWITH

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

Directors and others

APPROVEDPOLICY4HEAMOUNTPROVIDEDDURING ONTHISACCOUNTIS`21.21 crores `#RORE ANDTHEPAYMENTS
MADE TO EMPLOYEES DURING   IS `32.36 Crores  ` #RORES  4HE ACTUARIAL LIABILITY OF `200.76 Crores in this
RESPECTASONISINCLUDEDUNDERh0ROVISIONFOR%MPLOYEES"ENElTvINh.OTEn0ROVISIONSv

Board of
Leave Fare Allowance (LFA)/Leave Travel Concession (LTC):
 ,4#ISALLOWEDONCEINAPERIODOFTWOCALENDARYEARSVIZTWOYEARLYBLOCK !NEMPLOYEEHASINANYGIVENBLOCKPERIODOFTWOYEARS
ANOPTIONOFAVAILING,4#ORENCASHINGTHEENTILEMENTSOF,&!
D. 4HESUMMARISEDPOSITIONOFVARIOUS$ElNED"ENElT0LANSRECOGNISEDINTHE3TATEMENTOF0ROlT,OSS"ALANCE3HEETAND/THER
#OMPREHENSIVE)NCOMEAREASUNDER

Directors’
Report
 &IGURESGIVENIN5NBOLD)TALIC&ONTINTHETABLEAREFORPREVIOUSYEAR

Discussion & Analysis

I  2ECONCILIATIONOFBALANCEOF$ElNED"ENElT0LANS
`IN#RORE

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

on obligations - (55.61) (99.86) 0.02 (3.40) (20.20) 4.55 0.49

$ElNED"ENElT 14,870.94 2,806.98 4,908.94 - 175.54 120.83 208.92 3.89
Consolidated

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

NOTES TO FINANCIAL STATEMENTS

NOTE – 36 : EMPLOYEE BENEFITS (Contd...)
(ii) Reconciliation of balance of Fair Value of Plan Assets
`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 13,584.65 1,919.39 4,642.23 1.24 - - - -
Assets at the 12,122.31 1,923.12 3,702.41 2.87 - - - -
BEGINNINGOFTHE
year
Interest Income 1,161.37 153.42 360.24 - - - - -
1,159.20 140.17 275.83 0.12 - - - -
Contribution by 439.01 968.90 160.94 - - - - -
employer 420.95 - 772.23 - - - - -
Contribution by 1,204.47 - 1.27 - - - - -
employees 1,014.47 - 1.18 - - - - -
.ET,IABILITY 84.11 - - - - - - -
TRANSFERRED)N 68.01 - - - - - - -
/UT
"ENElTPAID (1,335.83) (383.02) (203.04) (1.24) - - - -
(1,101.00) (154.66) (180.16) (1.82) - - - -
2E MEASUREMENT 54.80 29.09 31.95 - - - - -
2ETURNONPLAN (99.29) 10.76 70.74 0.07 - - - -
ASSETSEXCLUDING
)NTEREST)NCOME
&AIRVALUEOFPLAN 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

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) - - - - -

Directors and others

%XPENSESFORTHE 439.01 105.08 200.66 0.01 16.33 29.23 14.90 0.61
year 420.95 1,346.88 242.92 0.06 111.53 61.12 14.90 0.51

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

Discussion & Analysis

on Obligations - (86.61) 192.00 - (3.40) (7.62) 4.55 (0.20)
$UETOCHANGEIN

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

NOTES TO FINANCIAL STATEMENTS

NOTE – 36 : EMPLOYEE BENEFITS (Contd...)
(vi) Major Actuarial Assumptions
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
$ISCOUNTRATE 7.78% 7.79% 7.78% - 7.78% 7.79% 7.54% 11.50%
       
Salary escalation - 8.00% - - - - - 1-7%
             
)NmATION - - 8.00% - 7.00% 6.00% - -
          
!VERAGE%XPECTED - 16 30 - - 16 11 11
&UTURE3ERVICE     2     
/BLIGATION9EARS

!SSUMPTIONSCONSIDEREDINACTUARIALVALUATIONOFDElNEDBENElTOBLIGATIONSOFTHE(OLDING#OMPANY
 4HEESTIMATEOFFUTURESALARYINCREASESCONSIDEREDINACTUARIALVALUATIONTAKESACCOUNTOFINmATIONSENIORITYPROMOTIONANDOTHER
RELEVANTFACTORSSUCHASSUPPLYANDDEMANDFACTORSINTHEEMPLOYMENTMARKET

(vii) Sensitivity on Actuarial Assumptions:

`IN#RORE
Loss/(Gain) for: 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
Change in
Discounting Rate
)NCREASEBY - (157.68) (652.78) - (26.02) (13.68) (7.96) (0.18)
- (156.54) (607.15) (0.01) (24.68) (13.34) (7.34) (0.15)
$ECREASEBY - 181.99 851.89 - 29.52 17.14 8.71 0.20
- 179.64 790.46 0.01 27.98 16.66 8.04 0.17
Change in Salary
Escalation
)NCREASEBY - 38.17 - - - - - 0.22
- 40.69 - 0.01 - - - 0.18
$ECREASEBY - (41.71) - - - - - (0.20)
- (45.42) - (0.01) - - - (0.17)
#HANGEIN)NmATION
Rate
)NCREASEBY - - 505.49 - 29.80 - - -
- - 467.36 - 28.26 - - -
$ECREASEBY - - (414.91) - (26.48) - - -
- - (383.10) - (25.10) - - -
 60th Annual Report 2018-19 373

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% -

Directors and others

&UNDS 4.68% 5.40% 5.18% -
)NVESTMENTIN$EBENTURES 39.33% 16.35% 22.67% -
Securities 41.23% 22.69% 25.57% -

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

Discussion & Analysis

Funded Funded Funded Non-Funded Non-Funded Non-Funded
7ITHINNEXT-ONTHS 433.23 209.61 - 4.63 8.78 36.67

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

NOTES TO FINANCIAL STATEMENTS

NOTE – 37 : COMMITMENTS AND CONTINGENCIES
A. Leases
(a) Operating lease — as Lessee
I  ,EASE2ENTALSCHARGEDTOTHE3TATEMENTOFPROlTANDLOSSANDMAXIMUMOBLIGATIONSONLONGTERMNON CANCELLABLEOPERATINGLEASES
payable as per the rentals stated in the respective lease agreements/arrangements
`IN#RORE
2018-19 2017-18
Lease Rentals for Non-Cancellable operating leases
A ,EASERENTALSRECOGNIZEDDURINGTHEYEARINCLAPPLICABLECASESASPERIV BELOW 9,402.17 
B ,EASE/BLIGATIONS
7ITHINONEYEAR 8,356.04 
!FTERONEYEARBUTNOTMORETHANlVEYEARS 18,743.58 
-ORETHANlVEYEARS 547.60 
 4HESERELATETOSTORAGETANKAGEFACILITIESFORPETROLEUMPRODUCTS"//CONTRACTFOR.ITROGENAND(YDROGEN0LANT1#LABAROTARYAT
0ARADIP2ElNERYLANDLEASESANDVARIOUSOTHERLEASESINSUBSTANCEASMENTIONEDINIV BELOW
II  4HE0ARENT#OMPANYHASPAIDADVANCEOF`215.90 CroreFORACQUISITIONOFLEASEHOLDBUILDINGSFORWHICHOFFEROFPOSSESSIONISISSUED
BYTHECONTRACTORDURINGTHEYEAR'ROUPHASNOTTAKENTHEPHYSICALPOSSESSIONOFPROPERTYASSTAYISIMPOSEDBY(ONBLE$ELHI(IGH
#OURTFORHANDINGOVEROFTHEOFlCEPREMISES0ENDINGTAKINGOVEROFPOSSESSIONAMOUNTPAIDTOCONTRACTORISCONTINUEDASADVANCES
UNDER.OTEANDNOAMORTIZATIONOFLEASERENTALISBEINGDONE
III  4HE'ROUPHASTAKENCERTAINASSETSINCLUDINGLANDSOFlCERESIDENTIALPREMISES ON/PERATING,EASEWHICHARECANCELLABLEBYGIVING
APPROPRIATENOTICEASPERTHERESPECTIVEAGREEMENTSINCLAPPLICABLECASESASPERIV BELOW$URINGTHECURRENTYEAR`1,006.91 crore
`CRORE HASBEENPAIDTOWARDSCANCELLABLE/PERATING,EASE!LSOREFER.OTE"FORMOREDETAILSONJUDGEMENTS
MADEFORLEASECLASSIlCATIONINCASEOFLANDS
IV  Leases in substance (Operating lease: Group as lessee)
 4HE 'ROUP HAS ENTERED INTO SOME CONTRACTS WHICH ARE IN SUBSTANCE  OPERATING LEASE CONTRACTS #URRENTLY THE 'ROUP HAS BOOKED
PAYMENTMADEUNDERTHESECONTRACTSASEXPENSESINTHESTATEMENTOFPROlTANDLOSS4HEDETAILSINRESPECTOFMATERIALOPERATING
LEASEARRANGEMENTSAREASUNDER
A  4HE'ROUPHASENTEREDINTOVARIOUSAGREEMENTSWITHTRANSPORTERSFORTHEMOVEMENTOFPETROLEUMPRODUCTSFORDIFFERENTTENURES
5NDERTHESEAGREEMENTSSPECIlCTRUCKSAREIDENTIlEDTHATAREUSEDEXCLUSIVELYFORTHETRANSPORTOPERATIONSOFTHE'ROUPONLY
B  4HE 'ROUP HAS ENTERED INTO AGREEMENTS WITH VESSEL OWNERS FOR HIRING OF VESSELS FOR DIFFERENT TENURES 3PECIlED VESSELS ARE
IDENTIlEDINTHEAGREEMENTWITHREFERENCETOTHENAMEANDDESCRIPTIONOFVESSELWHICHCANONLYBEUSED3UCHVESSELSARE
DEDICATEDFORTHE'ROUPSUSEONLYFORTHEENTIREPERIODOFARRANGEMENT&URTHERDURINGTHELEASEPERIODTHEOWNERCANLETOUT
THESPECIlCVESSELTOANYTHIRDPARTYONLYAFTEROBTAININGTHE'ROUPSPERMISSION(ENCETHISARRANGEMENTISCLASSIlEDASLEASE
ASPER!PPENDIX#TO)ND!3
C  "//AGREEMENTWITH!IR,IQUIDE)NDUSTRIESISFORSUPPLYOFOXYGENANDNITROGENAT0ANIPAT2ElNERYFORAPERIODOFYEARS
4HELANDISOWNEDBYTHE'ROUPANDTHEPLANTISBEINGOPERATEDBYCONTRACTORFORSUPPLYOFOXYGENANDNITROGENTOTHE'ROUP
4HEREISACOMMITMENTTOPAYMONTHLYMINIMUMAMOUNTASPERTHEAGREEMENT4HE'ROUPSHALLALWAYSHAVElRSTRIGHTOFUSE
OF.ITROGEN/XYGENMANUFACTUREDATTHEPLANT.ITROGENGASMANUFACTUREDBYTHECONTRACTORISMAINLYSUPPLIEDTOTHE'ROUP
(ENCETHISARRANGEMENTISCLASSIlEDASLEASEASPER!PPENDIX#TO)ND!3
 60th Annual Report 2018-19 375

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

Directors and others

(b) Operating lease — as Lessor
 4HELEASERENTALSRECOGNIZEDASINCOMEINTHESESTATEMENTSASPERTHERENTALSSTATEDINTHERESPECTIVEAGREEMENTS

Board of
`IN#RORE
2018-19 2017-18
!,EASERENTALSRECOGNIZEDASINCOMEDURINGTHEYEAR 2.21 
"6ALUEOFASSETSGIVENONLEASEINCLUDEDIN0ROPERTY0LANTAND%QUIPMENTS
'ROSS#ARRYING!MOUNT 1.44 

Directors’
Report
!CCUMULATED$EPRECIATION 0.26 
$EPRECIATIONRECOGNIZEDINTHE3TATEMENTOF0ROlTAND,OSS 0.04 

Discussion & Analysis

 4HESERELATEBUILDINGANDPLANTANDEQUIPMENTGIVENONLEASE

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'ROUPHASOBTAINEDVARIOUSLANDSFROMTHEGOVERNMENTSFORPURPOSEOFPLANTSFACILITIESANDOFlCES,EASECASESWHEREAT
Report on Corporate

THEINCEPTIONOFTHELEASETHEPRESENTVALUEOFMINIMUMLEASEPAYMENTSISSUBSTATITALLYEQUALTOTHEFAIRVALUEOFLEASEDASSETS
ARECONSIDEREDUNDERlNANCELEASES!LSOREFER.OTE"FORMOREDETAILSONJUDGEMENTSMADEFORLEASECLASSIlCATION
Governance
Consolidated financial
Statements
statements
Financial
 376 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 37 : COMMITMENTS AND CONTINGENCIES (Contd...)
Disclosure under Finance Lease as Lessee:
`IN#RORE
March 31, 2019 March 31, 2018
(i) Minimum lease payments
7ITHINONEYEAR 581.20 
!FTERONEYEARBUTNOTMORETHANlVEYEARS 2,263.77 
-ORETHANlVEYEARS 3,892.30 
TOTAL 6,737.27 7,071.62
(ii) Present value of minimum lease payments
7ITHINONEYEAR 201.06 
!FTERONEYEARBUTNOTMORETHANlVEYEARS 982.70 
-ORETHANlVEYEARS 2,327.04 
TOTAL 3,510.80 3,621.48
!DD&UTURElNANCECHARGES 3,226.47 3,450.14
TOTAL 6,737.27 7,071.62

(d) Finance lease — as lessor

 4HE'ROUPHASENTEREDINTOFOLLOWINGMATERIALlNANCELEASEARRANGEMENTS
I  4HE'ROUPHASENTEREDINTO,EASE!GREEMENTWITH)NDIAN2AILWAYSINRESPECTOF"40.4ANK7AGONSFORAMINIMUMPERIODOF
YEARS4HELEASERENTALSFROMTHEDATEOFFORMATIONOFRAKEARE FORTHElRSTYEARSANDTHEREAFTERATTHENOMINALRATE
OFOFTHECOST
II  4HE'ROUPHASENTEREDINTOALEASEAGREEMENTWITH)NDIAN3YNTHETIC2UBBER0RIVATE,IMITEDINWHICHTHECOMPAYHASLEASEDOUT
LANDFORONETIMEUPFRONTPAYMENTOF`16.65 crores.

`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 

Directors and others

 "`1,185.51 CRORE`CRORE INRESPECTOFOTHERCLAIMSINCLUDINGINTERESTOF`513.66 crore`
CRORE 
 4HE'ROUPHASNOTCONSIDEREDTHOSEDISPUTEDDEMANDSCLAIMSASCONTINGENTLIABILITIESFORWHICHTHEOUTmOWOFRESOURCES

Board of
HASBEENCONSIDEREDASREMOTE
B.2 Other money for which the Group is contingently liable
 0ENDINGDECISIONOFTHE'OVERNMENTNOLIABILITYCOULDBEDETERMINEDANDPROVIDEDFORINRESPECTOFADDITIONALCOMPENSATION
IFANYPAYABLETOTHELANDOWNERSANDTHE'OVERNMENTFORCERTAINLANDSACQUIRED

Directors’
C. Commitments

Report
C.1 Capital Commitments
 %STIMATEDAMOUNTOFCONTRACTSREMAININGTOBEEXECUTEDON#APITAL!CCOUNTANDNOTPROVIDEDFOR`24,492.45 crore

Discussion & Analysis

`CRORE #APITAL#OMMITMENTSINRESPECTOF*OINT/PERATIONSAREDISCLOSEDIN.OTE

Management’s
C.2 Other Commitments
 #4HE'ROUPHASANEXPORTOBLIGATIONTOTHEEXTENTOF`816.91 crore `CRORE ONACCOUNTOFCONCESSIONAL
RATEOFDUTYAVAILEDUNDER%0#'LICENSESCHEMEONPROCUREMENTOFCAPITALGOODSANDTHESAMEISEXPECTEDTOBEFULlLLED
BYWAYOFEXPORTS

Responsibility Report
 #4OMEETTHEDIRECTIONOF(ONOURABLE(IGHCOURTOF/RISSATHE'ROUPHASACOMMITMENTTOPAY`280.10 crore
`CRORE TOWARDSPROVIDINGHIGHTECHAMBULANCESREMOVALOFOLDANICUTANDCONSTRUCTIONOFWATERTREATMENTPLANT
INTHESTATEOF/RISSA)NADDITIONTHE'ROUPHASTOINCURCOSTTOWARDSDREDGINGTHROUGH/RISSA#ONSTRUCTION#OASTATE

Business
GOVERNMENTAGENCYESTIMATEFORWHICHYETTOBElNALISED
 #)NDIAN/IL,.'0RIVATE,IMITED)/,0, THE*6COMPANYHASENTEREDINTO$EBENTURE3UBSCRIPTION!GREEMENTWITH)#)#)
"ANK)#)#) INWHICHTHE#OMPANY)/#, ASPROMOTEROF)/,0,HASPROVIDEDPUTOPTIONUNDERWHICH)#)#)HASOPTION Report on Corporate
TOSELL#OMPULSORY#ONVERTIBLE$EBENTURE##$ TOTHE#OMPANY)/#, BEFORETHEEXPIRYDATE)NADDITIONTOTHISTHE
#OMPANYATTHESOLEDISCRETIONHASRIGHTTOACQUIRE##$FROM)#)#)ONORBEFORETHEEXPIRYDATE4HE'ROUPS)/#, 
Governance

SHAREOFSUCHOBLIGATIONIS`808.44 Crore`#RORE 
 #4HE'ROUPHASISSUED#ORPORATE'UARANTEEONBEHALFOF)NDIAN/IL!DANI'AS0RIVATE,IMITED)/!'0, TOTHEEXTENTOF
OBLIGATIONSOFLATERCOMPANYUNDER0ERFORMANCE"ANK'UARANTEEFACILITYPROVIDEDTO)/!'0,BY@3TATE"ANKOF)NDIA
financial

3YNDICATE"ANK#ANARA"ANK"ANKOF"ARODA!LLAHABAD"ANK)NDUS)ND"ANK*AMMUAND+ASHMIR"ANKAND!XIS

BANK4HE#OMPANYSSHAREOFSUCHOBLIGATIONISESTIMATEDAT`3,533.46 crore`CRORE 
Consolidated
Statements
statements
Financial
 378 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 37 : COMMITMENTS AND CONTINGENCIES (Contd...)
 #4HE 'ROUP HAS ISSUED #ORPORATE 'UARANTEE ON BEHALF OF )NDIAN/IL ,.' 0RIVATE ,IMITED )/,0,  TO THE EXTENT OF
OBLIGATIONSOF)/,0,UNDER0ERFORMANCE"ANK'UARANTEEFACILITYPROVIDEDTO)/,0,BY3TATE"ANKOF)NDIA4HEESTIMATED
AMOUNTOFSUCHOBLIGATIONISAT`11.40 crore`CRORE 
 #4HE'ROUPHASENTEREDINTO3IGNATURE"ONUS!GREEMENTWITH2EPUBLICOF6ENEZUELAPAYABLEONACHIEVEMENTOFVARIOUS
PROJECTMILESTONES4HEESTIMATEDAMOUNTOFSUCHOBLIGATIONISAT`393.69 croreCRORE 
D. Contingent assets
`IN#RORE
March 31, 2019 March 31, 2018
A ! CUSTOMER HAD LODGED A CLAIM AGAINST THE 'ROUP CHALLENGING THE PRICING - 
MECHANISMOFUTILITIESPROVIDED4HEMATTERWASREFERREDTOARBITRATIONANDAWARD
WASGIVENINFAVOUROFTHE'ROUPCUSTOMERHASAPPROACHED(ONUORABLE(IGHCOURT
CHALLENGING THE AWARD OF ARBITRATION AND (ONOURABLE (IGH COURT VIDE ITS INTERIM
ORDERSDATED!UGUSTAND!PRILHASDIRECTEDTHECUSTOMERTO
DEPOSIT THE PRINCIPAL AMOUNT AND INTEREST AMOUNT RESPECTIVELY IN THE 2EGISTRY OF
THECOURT#OURTHASALSODIRECTEDTHATTHEAMOUNTDEPOSITEDBYTHECUSTOMERSHALL
BERELEASEDTOTHE'ROUPUPONFURNISHINGANUNCONDITIONAL"ANK'UARANTEEOFTHE
EQUIVALENTAMOUNT"ASEDONTHEDIRECTIONOFTHE#OURTTHE'ROUPHASFURNISHED
UNCONDITIONAL "ANK 'URANTEE DURING CURRENT YEAR 0ENDING RECEIPT OF MONEY THE
MANAGEMENTHADTREATEDAPORTIONOFTHEAMOUNTRECOVERABLEASCONTINGENTASSET
PENDINGADJUDICATIONOFMATTERWITH(ONOURABLE(IGH#OURTINTHEPREVIOUSYEAR

B )NRESPECTOF-S+HAZANA0ROJECTSAND)NDUSTRIES0 ,TDFORTHEAMOUNTOFRISK 3.61 

COSTCLAIMALONGWITHSUPERVISIONCHARGESADMITTEDBYTHE!RBITRATORINFAVOUR
OF)/#,

C )N RESPECT OF -S -ETRO "UILDERS FOR THE AMOUNT OF RISK  COST CLAIM ALONG WITH 5.36  
SUPERVISIONCHARGESPRICEDISCOUNTANDINTERESTADMITTEDBYTHE!RBITRATORIN
FAVOUROFTHE'ROUP

D )NRESPECTOF%LECTRICITY$UTYARREARSCLAIMEDFROM'UJARAT%LECTRICITY"OARD'%"  31.02  
FORSTATIONSWEF$ECEMBERBASEDONSIMILARCASEDECIDEDBY'UJARAT(IGH
#OURTINFAVOUROFTHE'ROUP

TOTAL 39.99 116.46

 60th Annual Report 2018-19 379

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

Directors and others

 0ETRONET#),IMITED  .ATIONAL!ROMATICS0ETROCHEMICALS#ORPORATION,IMITED
 )NDIAN/IL,.'0RIVATE,IMITED  ).$/),.ETHERLANDS"6

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

Discussion & Analysis

 )/4%NGINEERING#ONSTRUCTION3ERVICES,TD   )NDIAN /ILTANKING %NGINEERING  #ONSTRUCTION 3ERVICES ,,#
Oman

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

NOTES TO FINANCIAL STATEMENTS

NOTE – 38 : RELATED PARTY DISCLOSURES (Contd...)
C) The following transactions were carried out with the related parties in the ordinary course of business:
`IN#RORE
March 31, 2019 March 31, 2018
1 Sales of Products/Services 1,159.73 
;)NCLUDES SALES TO )NDIAN/IL 0ETRONAS 0RIVATE ,IMITED `548.21 crore  `
CRORE  AND )NDIAN 3YNTHETIC 2UBBER 0RIVATE ,IMITED `460.33 crore  ` 
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 185.91 
;)NCLUDES/THER/PERATING2EVENUE/THER)NCOMEFROM)NDIAN3YNTHETIC2UBBER0RIVATE
Limited `95.79 crore  ` CRORE  AND &ALCON /IL  'AS " 6 `64.04 crore
.), =
4 Purchase of Products 7,870.11 
;)NCLUDES 0URCHASE OF 0RODUCTS FROM 0ETRONET ,.' ,IMITED `5,768.06 crore 
`CRORE =
5 Purchase of Raw Materials/Others 5,527.95 
;)NCLUDES0URCHASEOF2AW-ATERIALS/THERSFROM0ETRONET,.',IMITED`5,083.97 crore
`CRORE =
6 Interest paid 284.69 
;)NCLUDES )NTEREST PAID TO )/4 5TKAL %NERGY 3ERVICES ,IMITED `284.69 crore 
`CRORE =
7 Handling/Other Expenses 996.23 
;)NCLUDES (ANDLING/THER %XPENSES TO )NDIAN/IL 3KY 4ANKING 0RIVATE ,IMITED
`432.75 crore`CRORE AND)NDIAN/IL0ETRONAS0RIVATE,IMITED`298.93
crore `CRORE =
8 Reimbursement of Expenses 1.71 
;)NCLUDES2EIMBURSEMENTOF%XPENSESPERTAININGTO)NDIAN/ILTANKING,TD`1.26 crore
`CRORE AND'REEN'AS,IMITED`0.29 crore.), =
9 Investments made/(sold) during the year incl. Advance for Investment 547.23 
;)NCLUDES)NVESTMENTMADESOLD 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 166.54 
;)NCLUDES0URCHASE!CQUISITIONOF&IXED!SSETSINCL#7)0FROM)/45TKAL%NERGY3ERVICES
Limited `147.72 crore`CRORE =
11 Provisions made/(write back) during the year 0.03  
;)NCLUDES0ROVISIONMADE'30,)NDIA'ASNET,IMITED`0.03 crore.), =
12 Outstanding Receivables/Loans 917.01 
;)NCLUDES /UTSTANDING 2ECEIVABLES,OANS  !DVANCES FROM 0ETRONET ,.' ,IMITED
`286.96 crore`CRORE 4AAS)NDIA04%,IMITED`151.22 crore
`CRORE 3UNTERA.IGERIA,IMITED`139.31 crore`CRORE AND
6ANKOR)NDIA04%,IMITED`43.47 crore`CRORE =
13 Outstanding Payables 3,521.65 
;)NCLUDES /UTSTANDING PAYABLE TO )/4 5TKAL %NERGY 3ERVICES ,IMITED `2,665.02 crore
`CRORE =
14 Investments in JV/Associates as on date 9,775.09 
 60th Annual Report 2018-19 381

About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 38 : RELATED PARTY DISCLOSURES (Contd...)

Chairman’s Desk
Note:
 4RANSACTIONSINEXCESSOFOFTHETOTALRELATEDPARTYTRANSACTIONSFOREACHTYPEHASBEENDISCLOSEDABOVE

From the
 )NCASEOF*OINT6ENTURE3UBSIDIARY#OMPANIESCONSTITUTEDACQUIREDDURINGTHEPERIODTRANSACTIONSWEFDATEOFCONSTITUTION
ACQUISITIONISDISCLOSED
 )NCASEOF*OINT6ENTURE3UBSIDIARY#OMPANIESWHICHHAVEBEENCLOSEDDIVESTEDDURINGTHEPERIODTRANSACTIONSUPTOTHEDATE
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

Directors and others

3HRI"62AGHAV2AJU -  

 'OVERNMENTRELATEDENTITIESWHERESIGNIlCANTTRANSACTIONSCARRIEDOUT

Board of
 !PARTFROMTRANSACTIONSREPORTEDABOVETHE'ROUPHASTRANSACTIONSWITHOTHER'OVERNMENTRELATEDENTITIESWHICHINCLUDESBUTNOT
LIMITEDTOTHEFOLLOWING
 .AMEOF'OVERNMENT'OVERNMENTOF)NDIA#ENTRALAND3TATE'OVERNMENT
 .ATUREOF4RANSACTIONS
• 3ALEOF0RODUCTSAND3ERVICES
• 0URCHASEOF0RODUCTS

Directors’
• 0URCHASEOF2AW-ATERIALS

Report
• (ANDLINGAND&REIGHT#HARGESETC

Discussion & Analysis

4HESETRANSACTIONSARECONDUCTEDINTHEORDINARYCOURSEOFTHE'ROUPSBUSINESSONTERMSCOMPARABLETOTHOSEWITHOTHERENTITIES
THATARENOT'OVERNMENT RELATED

Management’s

 ,IQUIDATORHASBEENAPPOINTEDFORWINDINGUPOFCOMPANYWEF!UGUST
 4HE*6#HASNOTBEENCLOSEDWOUNDUPASYETHOWEVERTHECOMPANYISNOTCARRYINGOUTANYOPERATIONS
Ï )NDIAN/ILHASDECIDEDTOEXITTHE*OINT6ENTUREANDHASGIVENNOTICEOFITSEXITFROMTHE,,0TOTHEOTHER*6PARTNERVIZ2UCHI
3OYA)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBERSTATINGTHATITWILLEXITTHE,,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*ANUARYANDWEF 5PTO-AY
&EBRUARY
Governance

 3HRI'+3ATISH  3HRI6INOO-ATHUR  3MT3USHMA4AISHETE2ATH

5PTO*ULY
financial

 $R3362AMAKUMAR  3HRI3AMIRENDRA#HATTERJEE  3MT)NDRANI+AUSHAL

5PTO-ARCH
Consolidated
Statements
statements
Financial
 382 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 38 : RELATED PARTY DISCLOSURES (Contd...)
A. Whole Time Directors/Company Secretary B. Independent Directors C. Government Nominee Directors

 3HRI"62AMA'OPAL  3HRI6IVEK2AE5PTO*UNE  3MT3USHMITA$ASGUPTA

WEF-ARCH

 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

D) Details relating to the parties referred to in Item No. 4A & 4B above:

March 31, 2019
`IN#RORE
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
 3HRI3ANJIV3INGH        
 3HRI!+3HARMA        
 3HRI'+3ATISH        
 $R3362AMAKUMAR       
 3HRI"62AMA'OPAL       
 3HRI2ANJAN+UMAR-OHAPATRA       
 3HRI'URMEET3INGH        
 3HRI!KSHAY+UMAR3INGH        
 3HRI+AMAL+UMAR'WALANI       
B. Independent Directors
 3HRI3ANJAY+APOOR           
 3HRI0ARINDU+"HAGAT           
 3HRI6INOO-ATHUR           
 3HRI3AMIRENDRA#HATTERJEE           
 3HRI6IVEK2AE           
 3HRI#HITTA2ANJAN"ISWAL           
 $R*AGDISH+ISHWAN           
 3HRI3ANKAR#HAKRABORTI           
 3HRI$HARMENDRA33HEKHAWAT           
TOTAL 5.71 0.75 0.96 7.42 0.67 0.43
 60th Annual Report 2018-19 383

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            

Directors and others

 3HRI+AMAL+UMAR'WALANI       
B. Independent Directors

Board of
 3HRI3ANJAY+APOOR           
 3HRI0ARINDU+"HAGAT           
 3HRI6INOO-ATHUR           
 3HRI3AMIRENDRA#HATTERJEE           

Directors’
 3HRI6IVEK2AE           

Report
 3HRI#HITTA2ANJAN"ISWAL           
 $R*AGDISH+ISHWAN           

Discussion & Analysis

 3HRI3ANKAR#HAKRABORTI           

Management’s
 3HRI$HARMENDRA33HEKHAWAT           
TOTAL 2.78 0.34 0.78 3.90 0.63 0.59
Notes :

Responsibility Report
  4HISDOESNOTINCLUDETHEIMPACTOFPROVISIONMADEONACTUARIALVALUATIONOFRETIREMENTBENElTLONGTERM3CHEMESANDPROVISION
MADEDURINGTHEPERIODTOWARDS0OST2ETIREMENT"ENElTSASTHESAMEARENOTSEPARATELYASCERTAINABLEFORINDIVIDUALDIRECTORS

Business
  )NADDITIONWHOLE TIME$IRECTORSAREALSOALLOWEDTHEUSEOF#ORPORATIONSCARFORPRIVATEPURPOSESUPTOKMSPERANNUMON
APAYMENTOF` PERMENSEM

Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
 384 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 38 : RELATED PARTY DISCLOSURES (Contd...)
5) Trusts
 4RANSACTIONSWITH0OST%MPLOYMENT"ENElT0LANSMANAGEDTHROUGHSEPARATETRUST
`IN#RORE
Name of the Trust Post Employment March 31, 2019 March 31, 2018
"ENElT0LAN Contribution Outstanding Contribution Outstanding
by employer Receivable/ by employer Receivable/
(Payable) (Payable)
1 )/#,2ElNERY$IVISION %MPLOYEES 0ROVIDENT&UND 190.95 (18.72)  
0ROVIDENT&UND
2 )NDIAN/IL#ORPORATION,IMITED!SSAM/IL 0ROVIDENT&UND 19.17 (6.98)  
$IVISION %MPLOYEES0ROVIDENT&UND
3 0ROVIDENT&UNDFORTHE%MPLOYEESOF 0ROVIDENT&UND 208.00 (52.98)  
)NDIAN/IL#ORPORATION,IMITED-ARKETING
$IVISION
4 )/#,%MPLOYEES3UPERANNUATION"ENElT 0ENSION3CHEME 1,740.72 19.76  
&UND
 )/#,%MPLOYEES0OST2ETIREMENT-EDICAL 0OST2ETIREMENT 160.94 84.65  
"ENElT&UND Medical Scheme
 )/#,%MPLOYEES'ROUP'RATUITY4RUST 'RATUITY 909.31 (113.63)   
 )NDIAN/IL#ORPORATION,IMITED!SSAM/IL 0ENSION3CHEME - -   
$IVISION 3TAFF0ENSION&UND
8 #0#,%MPLOYEES0ROVIDENT&UND 0ROVIDENT&UND 20.97 5.00  
 #0#,%MPLOYEES3UPERANNUATION"ENElT 0ENSION3CHEME 22.53 -  
&UND
 #0#,%MPLOYEES'ROUP'RATUITY4RUST 'RATUITY 59.59 -    
Transactions with CPCL Educational Trust
`IN#RORE
Type of Transactions March 31, 2019 March 31, 2018
1 #32%XPENSES 0.70 
 60th Annual Report 2018-19 385

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

Directors and others

 0ROVISIONFORDIMINUTION -  
IN)NVESTMENTS.ET
 ,OSSONSALEANDDISPOSAL 169.40 
OF!SSETS

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

Discussion & Analysis

 0ROVISIONFORDIMINUTION 1.60 
IN)NVESTMENTSWRITTEN

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

1. The Company is engaged in the following business segments:

Governance

A  3ALEOF0ETROLEUM0RODUCTS
B  3ALEOF0ETROCHEMICALS
C  /THER"USINESSESWHICHCOMPRISES3ALEOF'AS%XPLOSIVES#RYOGENICS7IND-ILL3OLAR0OWER'ENERATIONAND/IL'AS%XPLORATION!CTIVITIES
 3EGMENTSHAVEBEENIDENTIlEDANDREPORTEDTAKINGINTOACCOUNTTHENATUREOFPRODUCTSANDSERVICESANDDIFFERINGRISKSANDRETURNS
financial

2. Segment Revenue comprises of the following:

A  4URNOVER)NCLUSIVEOF%XCISE$UTIES
B  .ET#LAIM3URRENDER OF33#
Consolidated

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 39 : SEGMENT INFORMATION (Contd...)
Primary Segment Reporting as per Ind AS 108 for the year ended March 31, 2019 is as under
Other Information
`IN#RORE
2018-19 2017-18
Petroleum Petro- Other Total Petroleum Petro- Other Total
Products chemicals Business Products chemicals Business
Segment Assets 2,52,882.70 16,847.70 17,698.70 2,87,429.10    
Corporate Assets
)NVESTMENTS#URRENT 43,927.66 
AND.ON#URRENT
!DVANCES&OR 1,315.80 
Investments
!DVANCE4AX 1,875.25 
Interest Accrued On 196.97 
)NVESTMENTS"ANK
$EPOSITS
,OANSTO*6INCLUDED 237.13 
in Loans and
Receivables
$EPOSITS&OR,EAVE 76.63 
%NCASEMENT&UND
$ERIVATIVE!SSET 35.56 
&INANCE,EASE 59.97 
Receivables
Total Assets 3,35,154.07 2,95,674.66
Segment Liabilities 1,03,118.10 807.51 3,345.82 1,07,271.43    
Corporate Liabilities
,IABILITYFOR$IVIDEND 3.93 
0ROVISION&OR4AXATION -  
"ORROWINGS3HORT 92,711.74 
4ERMAND,ONG4ERM
#URRENT-ATURITIESOF 4,053.30 
,ONG 4ERM$EBT
$EFERRED4AX,IABILITY 16,509.71 
Interest Accrued - 
"UT.OT$UEON
"ORROWINGS
$ERIVATIVE,IABILITIES 258.40 
Total Liabilities 2,20,808.51 1,79,650.66
Capital Employed
Segment Wise 1,49,764.60 16,040.19 14,352.88 1,80,157.67    
Corporate (65,812.11) 
Total Capital Employed 1,14,345.56 1,16,024.00
#APITAL%XPENDITURE 26,274.58 2,111.97 3,402.60 31,789.15    
$EPRECIATIONAND 6,951.28 958.26 596.91 8,506.45    
!MORTIZATION
 60th Annual Report 2018-19 387

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

Revenue from major products and services

Description of
`IN#RORE
2018-19 2017-18

Capitals
-OTOR3PIRIT-3 1,16,709.14 
(IGH3PEED$IESEL(3$ 3,06,006.65 

Directors and others

3UPERIOR+EROSENE/IL3+/ 13,311.40 
,IQUIlED0ETROLEUM'AS,0' 66,097.60 

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 40 : FAIR VALUES
3ETOUTBELOWISACOMPARISONBYCLASSOFTHECARRYINGAMOUNTSANDFAIRVALUEOFTHE'ROUPSlNANCIALINSTRUMENTSALONGWITHTHEFAIR
value measurement hierarchy:
`IN#RORE
Carrying Value Fair Value Fair Value
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018 measurement
hierarchy level
Financial Assets
!&6/#)lNANCIALINSTRUMENTS
Quoted Equity Shares 18,650.71  18,650.71  Level 1
5NQUOTED%QUITY)NSTRUMENTIN 138.33   138.33   Level 2
,ANZATECH.EW:EALAND,TD
/THER5NQUOTED%QUITY)NSTRUMENT 1,402.05  1,402.05  Level 3
1UOTED'OVERNMENT3ECURITIES 11,263.24  11,263.24  Level 1
Hedging derivatives
#OMMODITYFORWARDCONTRACTS -ARGIN 35.56   35.56   Level 2
Hedging
"&60,lNANCIALINSTRUMENTS
$ERIVATIVE )NSTRUMENTS AT FAIR VALUE -  -  Level 2
THROUGHPROlTORLOSS
5NIT4RUST)NVESTMENTS 1.10  1.10  Level 1
C. Amortised Cost:
Loans to employees 1,335.01  1,331.75  Level 2
0-59,OAN 1,729.76  1,725.37  Level 2

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
RECEIVED3HORT 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
TRANSACTIONBETWEENWILLINGPARTIESOTHERTHANINAFORCEDORLIQUIDATIONSALE
 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

Directors and others

USEOFMARKETOBSERVABLEINPUTS
IV  Loans to employees/PMUY Loan:$ISCOUNTINGFUTURECASHmOWSUSINGRATESCURRENTLYAVAILABLEFORITEMSONSIMILARTERMSCREDIT
RISKANDREMAININGMATURITIES

Board of
V  Finance Lease Obligation: &OROBLIGATIONARRIVEDBASEDON)22IMPLICITRATEAPPLICABLEONTHEREPORTINGDATEANDFOROBLIGATION
ARRIVEDBASEDONINCREMENTALBORROWINGRATEAPPLICABLERATEFORREMAININGMATURITY
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

Discussion & Analysis

C. Level 3 Hierarchy:
I Unquoted Equity Instruments:&AIRVALUESOFTHEUNQUOTEDEQUITYSHARESEXCEPTTHOSECOVEREDIN,EVELHAVEBEENESTIMATED

Management’s
USINGA$#&MODEL4HEVALUATIONREQUIRESMANAGEMENTTOMAKECERTAINASSUMPTIONSABOUTTHEMODELINPUTSINCLUDINGFORECAST
CASHmOWSDISCOUNTRATECREDITRISKANDVOLATILITY4HEPROBABILITIESOFTHEVARIOUSESTIMATESWITHINTHERANGECANBEREASONABLY
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

INUNQUOTEDEQUITYINSTRUMENTS WEIGHTSTO X  DECREASE INFAIRVALUEBY

2EFER.OTE FOR#ARRYING6ALUE Revenue and X  `4.50 crore/`(4.40) crore
Governance

%")4$!-ULTIPLE XX `CRORE` CRORE

%")4$!  XINCREASEDECREASE IN%")4$!
multiple X XX  -ULTIPLEWOULDRESULTININCREASE
financial

X DECREASE INFAIRVALUEBY

XX `7.50 crore/`(7.40) crore
`CRORE` CRORE
Consolidated
Statements
statements
Financial
 390 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 40 : FAIR VALUES (Contd...)
Description Valuation 3IGNIlCANT Range (weighted Sensitivity of the input to fair value
technique unobservable average)
inputs
II #EYLON0ETROLEUM3TORAGE -ARKET!PPROACH Revenue  XINCREASEDECREASE IN2EVENUE
4ERMINALS,IMITEDINCLUDED Multiple X XX  -ULTIPLEWOULDRESULTININCREASE
UNDER&64/#)ASSETSIN X DECREASE INFAIRVALUEBY
UNQUOTEDEQUITYINSTRUMENTS XX `11.10 crore/`(11.00) crore
`CRORE` CRORE
%")4$!  XINCREASEDECREASE IN%")4$!
multiple X XX  -ULTIPLEWOULDRESULTININCREASE
X DECREASE INFAIRVALUEBY
XX `13.40 crore/`(13.50) crore
`CRORE` CRORE
III 0ETROCARABABO3!AND $#&METHOD $ISCOUNT  INCREASEDECREASE INTHE$ISCOUNT
#ARABOBO)NGENIERIA9 Rate   2ATEWOULDRESULTINDECREASE INCREASE
#ONSTRUCCIONES3!INCLUDED   INFAIRVALUEBY
UNDER&64/#)ASSETSIN  `(8.70) crore/`8.70 crore
UNQUOTEDEQUITYINSTRUMENTS   ` CRORE`CRORE


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'ROUPSPRINCIPALlNANCIALLIABILITIESOTHERTHANDERIVATIVESCOMPRISE"ORROWINGSTRADEANDOTHERPAYABLESSECURITYDEPOSITS
EMPLOYEELIABILITIESANDlNANCELEASEOBLIGATION4HEMAINPURPOSEOFTHESElNANCIALLIABILITIESISTOlNANCETHE'ROUPSOPERATIONS
ANDTOPROVIDEGUARANTEESTOSUPPORTITSOPERATIONS4HE'ROUPSPRINCIPALlNANCIALASSETSINCLUDELOANSADVANCESTRADEANDOTHER
RECEIVABLESSHORT TERMDEPOSITSANDCASHCASHEQUIVALENTSTHATDERIVEDIRECTLYFROMITSOPERATIONS4HE'ROUPALSOHOLDS&64/#)
INVESTMENTSANDENTERSINTODERIVATIVETRANSACTIONS

About IndianOil
 4HE'ROUPISEXPOSEDTOANUMBEROFDIFFERENTlNANCIALRISKSARISINGFROMNATURALBUSINESSEXPOSURESASWELLASITSUSEOFlNANCIAL
INSTRUMENTSINCLUDINGMARKETRISKRELATINGTOINTERESTRATECOMMODITYPRICESFOREIGNCURRENCYEXCHANGERATESANDEQUITYPRICECREDIT
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'ROUPSPOLICIESRISKOBJECTIVESANDRISKAPPETITE
 4HE'ROUPSREQUIREMENTOFCRUDEOILAREMANAGEDTHROUGHINTEGARTEDFUNCTIONHANDLEDTHROUGHITSINTERNATIONALTRADEANDOPTIMIZATION
DEPARTMENT!LLDERIVATIVEACTIVITIESFORRISKMANAGEMENTPURPOSESARECARRIEDOUTBYSPECIALISTTEAMSTHATHAVETHEAPPROPRIATESKILLS

Directors and others

EXPERIENCEANDSUPERVISION!SPER'ROUPSPOLICYDERIVATIVESCONTRACTSARETAKENONLYTOHEDGETHEVARIOUSRISKSTHATTHE'ROUPIS
EXPOSEDTOANDNOTFORSPECULATIONPURPOSE

Board of
 4HE"OARDOF$IRECTORSOVERSEETHERISKMANAGEMENTACTIVITIESFORMANAGINGEACHOFTHESERISKSWHICHARESUMMARISEDBELOW
A. Market risk
 -ARKETRISKISTHERISKTHATTHEFAIRVALUEOFFUTURECASHmOWSOFAlNANCIALINSTRUMENTWILLmUCTUATEBECAUSEOFCHANGESINMARKET
PRICES4HEMAJORCOMPONENTSOFMARKETRISKAREINTERESTRATERISKFOREIGNCURRENCYRISKCOMMODITYPRICERISKANDOTHERPRICERISKVIZ
EQUITYSHARESETC&INANCIALINSTRUMENTSAFFECTEDBYMARKETRISKINCLUDE"ORROWINGS$EPOSITS&64/#)INVESTMENTSANDDERIVATIVE

Directors’
lNANCIALINSTRUMENTS

Report
 4HESENSITIVITYANALYSISINTHEFOLLOWINGSECTIONSRELATETOTHEPOSITIONASAT-ARCHAND-ARCH

Discussion & Analysis

 4HE ANALYSIS EXCLUDES THE IMPACT OF MOVEMENTS IN MARKET VARIABLES ON THE CARRYING VALUES OF GRATUITY AND OTHER POST RETIREMENT
OBLIGATIONSPROVISIONSANDOTHERNON lNANCIALASSETSANDLIABILITIESOFFOREIGNOPERATIONS

Management’s
1. Interest Rate Risk
 4HE'ROUPISEXPOSEDTOINTERESTRATERISKFROMTHEPOSSIBILITYTHATCHANGESININTERESTRATESWILLAFFECTFUTURECASHmOWSOFAlNANCIAL
INSTRUMENTPRINCIPALLYlNANCIALDEBT4HE'ROUPSEXPOSURETOTHERISKOFCHANGESINMARKETINTERESTRATESRELATESPRIMARILYTOTHE
'ROUPSLONG TERMDEBTOBLIGATIONSWITHmOATINGINTERESTRATES

Responsibility Report
 4HE'ROUPMANAGESTOMAINTAINAMIXBETWEENlXEDANDmOATINGRATESFORRUPEEANDFOREIGNCURRENCYLOANSBASEDONLIQUIDITY
AVAILABILITYOFCOSTEFFECTIVEINSTRUMENTSANDCONSIDERINGTHEMARKETREGULATORYCONSTRAINTSETC!SAT-ARCHAPPROXIMATELY

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
VARIABLESHELDCONSTANTONmOATINGRATEBORROWINGSISASFOLLOWS Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
 392 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 41 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Currency of Borrowings Increase/Decrease %FFECTONPROlT Increase/Decrease %FFECTONPROlT
in basis points before tax in basis points before tax
(` in Crore) (` in Crore)
March 31, 2019 March 31, 2018
).2 +50   
53$OLLAR +50   
).2 -50   
53$OLLAR -50   

2. Foreign Currency Risk

 &OREIGNCURRENCYRISKISTHERISKTHATTHEFAIRVALUEORFUTURECASHmOWSOFANEXPOSUREWILLmUCTUATEBECAUSEOFCHANGESINFOREIGN
EXCHANGERATES4HE'ROUPSEXPOSURETOTHERISKOFCHANGESINFOREIGNEXCHANGERATESRELATESPRIMARILYTOTHE'ROUPSOPERATING
ACTIVITIESWHENREVENUEOREXPENSEISDENOMINATEDINAFOREIGNCURRENCY AND"ORROWINGS
 4HE'ROUPMANAGESITSFOREIGNCURRENCYRISKTHROUGHCOMBINATIONOFNATURALHEDGEMANDATORYHEDGINGANDHEDGINGUNDERTAKENON
OCCURRENCEOFPRE DETERMINEDTRIGGERS4HEHEDGINGISMOSTLYUNDERTAKENTHROUGHFORWARDCONTRACTS
 4HE'ROUPHASOUTSTANDINGFORWARDCONTRACTOF`2,873.43 crore ASAT-ARCH-ARCH`CRORE WHICH
HASBEENUNDERTAKENTOHEDGEITSEXPOSURETOBORROWINGSANDOTHERlNANCIALLIABILITIES
 4HESENSITIVITYTOAREASONABLYPOSSIBLECHANGEIN53$).2EXCHANGERATESWITHALLOTHERVARIABLESHELDCONSTANTTHEIMPACTON
THE'ROUPSPROlTBEFORETAXISDUETOCHANGESINTHEFAIRVALUEOFMONETARYASSETSANDLIABILITIESINCLUDINGNON DESIGNATEDFOREIGN
CURRENCYDERIVATIVES4HE'ROUPSEXPOSURETOFOREIGNCURRENCYCHANGESFORALLOTHERCURRENCIESOTHERTHANBELOWISNOTMATERIAL

Currency Increase/Decrease %FFECTONPROlTBEFORE Increase/Decrease %FFECTONPROlT

in % tax (` in Crore) in % before tax (` in Crore)
March 31, 2019 March 31, 2018
&ORWARD#ONTRACT 53$OLLAR +5% 143.67  
-5% (143.67)  
/THER%XPOSURES 53$OLLAR +5% (3,745.04)  
-5% 3,745.04  
/THER%XPOSURES 3'$ +5% (104.58)  
-5% 104.58  
#ROSS#URRENCY 53$VS3'$ +5% (112.59)  
-5% 112.59  
 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
REASONTHETOTALEFFECTOFEXCHANGERATEmUCTUATIONSISNOTIDENTIlABLESEPARATELYINTHE'ROUPSREPORTEDRESULTS

3. Commodity Price Risk

 4HE 'ROUP IS EXPOSED TO VARIOUS COMMODITY PRICE RELATED RISK SUCH AS 2ElNERY -ARGINS IE $IFFERENTIAL BETWEEN THE PRICES OF
PETROLEUMPRODUCTSCRUDEOIL#RUDE/IL0RICEmUCTUATIONONACCOUNTSOFINVENTORYVALUATIONmUCTUATIONANDCRUDEOILIMPORTSETC
!SPERAPPROVEDRISKMANAGEMENTPOLICYTHE(OLDING#OMPANYCANUNDERTAKERElNERYMARGINHEDGINGINVENTORYHEDGINGANDCRUDE
OILPRICEHEDGINGTHROUGHSWAPSOPTIONSANDFUTURESINTHE/4#MARKETASWELLASDOMESTICEXCHANGESTOMITIGATETHERISKWITHINTHE
APPROVEDLIMITS
 #ATEGORY WISEQUANTITATIVEDATAABOUTCOMMODITYDERIVATIVETRANSACTIONSTHATAREOUTSANDINGISGIVENBELOW
1UANTITYINLAKHBBLS
Particulars March 31, 2019 March 31, 2018
Margin Hedging 15.75 
4HESENSITIVITYTOAREASONABLYPOSSIBLECHANGEINPRICEOFCRUDEOILRElNERYMARGINONTHEOUTSTANDINGCOMMODITYHEDGINGPOSITION
ASON-ARCH 
 60th Annual Report 2018-19 393

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 LISTEDEQUITYSECURITIESOTHERTHANITSINVESTMENTIN*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

Directors and others

 4HE'ROUPISEXPOSEDTOCERTAINMARKETRISKSRELATINGTOITSONGOINGBUSINESSOPERATIONSASEXPLAINEDABOVE4HE'ROUPHASAPPLIED
HEDGEACCOUNTINGFORDESIGNATEDDERIVATIVECONTRACTSWEF!PRILASPER)ND!3h&INANCIAL)NSTRUMENTSv$UETOTHIS

Board of
gain amounting to `CRORENETOFTAX HASBEENACCOUNTEDIN/THER#OMPREHENSIVEINCOMEWHICHWILLBERECYCLEDTO3TATEMENT
OF0ROlTAND,OSSINSUBSEQUENTPERIODSONSETTLEMENTOFRESPECTIVECONTRACTS
 $ERIVATIVESAREONLYUSEDFORECONOMICHEDGINGPURPOSESANDNOTASSPECULATIVEINVESTMENTS(OWEVERWHEREDERIVATIVESDONOTMEET
THEHEDGEACCOUNTINGCRITERIATHEYAREACCOUNTEDFORATFAIRVALUETHROUGHPROlTORLOSS)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) 

Discussion & Analysis

&OREIGNEXCHANGEFORWARDCONTRACTS ,OANS /THERlNANCIAL!SSETS - 

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'ROUPWANTSTOPROTECTTHEREALIZATIONOFMARGINSANDTHEREFORETOMITIGATETHISRISKTHE'ROUPIS
financial

TAKINGTHECRACKSPREADFORWARDCONTRACTSTOHEDGETHEMARGINONHIGHLYPROBABLEFORECASTSALEINFUTURE2ISKMANAGEMENTACTIVITIES
AREUNDERTAKENIN/4#MARKETIETHESEARETHEBILATERALCONTRACTSWITHREGISTEREDCOUNTERPARTIES
Consolidated
Statements
statements
Financial

 !LLTHESEHEDGESAREACCOUNTEDFORASCASHmOWHEDGES
 394 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 41 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Foreign Currency Risk
 4HE'ROUPISEXPOSEDTOVARIOUSFOREIGNCURRENCYRISKSASEXPLAINEDIN!ABOVE!SPER)/#,S&OREIGN#URRENCY)NTEREST2ATE2ISK
-ANAGEMENT0OLICY)TISREQUIREDTOFULLYHEDGETHESHORTTERMFOREIGNCURRENCYLOANSOTHERTHANREVOLVINGLINESAND0#&#LOANS 
ANDATLEASTOFTHELONGTERMFOREIGNCURRENCYLOANSBASEDONMARKETCONDITIONS
 !PART FROM MANDATORY HEDGING OF LOANS THE 'ROUP  ALSO UNDERTAKES FOREIGN CURRENCY FORWARD CONTRACTS FOR THE MANAGEMENT OF
CURRENCYPURCHASEFORREPAYMENTOFCRUDEPRODUCTLIABILITIESBASEDONMARKETCONDITIONSANDREQUIREMENTS4HEABOVEHEDGINGSARE
UNDERTAKENTHROUGHDELIVERYBASEDFORWARDCONTRACTS
 !LLTHESEHEDGESAREACCOUNTEDFORASCASHmOWHEDGES
Hedge Effectiveness
 4HEREISANECONOMICRELATIONSHIPBETWEENTHEHEDGEDITEMSANDTHEHEDGINGINSTRUMENTSASTHETERMSOFTHEFOREIGNEXCHANGE
ANDCOMMODITYFORWARDCONTRACTSMATCHTHETERMSOFHEDGEITEMS4HE'ROUPHASESTABLISHEDAHEDGERATIOOFFORTHEHEDGING
RELATIONSHIPS AS THE UNDERLYING RISK OF THE FOREIGN EXCHANGE AND COMMODITY FORWARD CONTRACTS ARE IDENTICAL TO THE HEDGED RISK
COMPONENTS4OTESTTHEHEDGEEFFECTIVENESSTHE'ROUPCOMPARESTHECHANGESINTHEFAIRVALUEOFTHEHEDGINGINSTRUMENTSAGAINST
THECHANGESINFAIRVALUEOFTHEHEDGEDITEMSATTRIBUTABLETOTHEHEDGEDRISKS
Source of Hedge ineffetiveness
 )NCASEOFCOMMODITYPRICERISKTHE'ROUPHASIDENTIlEDTHEFOLLOWINGSOURCESOFINEFFECTIVENESSWHICHARENOTEXPECTEDTOBE
MATERIAL
• $IFFERENCESINTHETIMINGOFTHECASHmOWSOFTHEHEDGEDITEMSANDTHEHEDGINGINSTRUMENTS
• $IFFERENTINDEXESLINKEDTOTHEHEDGEDRISKOFTHEHEDGEDITEMSANDHEDGINGINSTRUMENTS
• 4HECOUNTERPARTIESCREDITRISKDIFFERENTLYIMPACTINGTHEFAIRVALUEMOVEMENTSOFTHEHEDGINGINSTRUMENTSANDHEDGEDITEMS
• #HANGESTOTHEFORECASTEDAMOUNTOFCASHmOWSOFHEDGEDITEMSANDHEDGINGINSTRUMENTS
Disclosures of effects of Cash Flow Hedge Accounting
 4HE'ROUPHASAPPLIEDTHEHEDGEACCOUNTINGPROSPECTIVELYFROMTHE!PRIL4HERELATEDDISCLOSURESAREMADEFORTHECURRENT
YEARONLY
Hedging instruments
 4HE'ROUPISHOLDINGTHEFOLLOWINGFOREIGNEXCHANGEANDCOMMODITYFORWARDCONTRACTS
`IN#RORE
March 31, 2019 Maturity
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          
!VERAGEFORWARDRATE         
Commodity forward contracts- Margin Hedging
.OMINALVOLUME1UANTITYINLAKHBBLS      
.OMINALAMOUNT`CRORE      
!VERAGEFORWARDRATEBBL     

 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"ALANCE3HEETISASFOLLOWS

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)NCOMEISASFOLLOWS
`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      

Directors and others

,INEITEMINTHESTATEMENTOFPROlTORLOSSTHATINCLUDESTHE .! .! .!
RECOGNIZEDINEFFECTIVENESS
!MOUNTRECLASSIlEDFROM/#)TOPROlTORLOSS   

Board of
)NCOMETAXONABOVE   
,INEITEMINTHESTATEMENTOFPROlTORLOSSTHATINCLUDESTHE /THER%XPENSES /THER%XPENSES 2EVENUEFROM
RECLASSIlCATIONADJUSTMENTS Operations
B. Credit risk

Directors’
Trade Receivables

Report
 #USTOMERCREDITRISKISMANAGEDBYEACHBUSINESSUNITSUBJECTTOTHE'ROUPSESTABLISHEDPOLICYPROCEDURESANDCONTROLRELATING
TOCUSTOMERCREDITRISKMANAGEMENT#REDITQUALITYOFACUSTOMERISASSESSEDBASEDONANEXTENSIVECREDITRATINGSCORECARDAND

Discussion & Analysis

INDIVIDUALCREDITLIMITSAREDElNEDINACCORDANCEWITHTHISASSESSMENT/UTSTANDINGCUSTOMERRECEIVABLESAREREGULARLYMONITORED
ANDANYSHIPMENTSTOMAJORCUSTOMERSAREGENERALLYCOVEREDBY,ETTERSOF#REDIT"ANK'UARANTEESOROTHERFORMSOFCREDITINSURANCE

Management’s
WHEREVERREQUIRED
 !NIMPAIRMENTANALYSISISPERFORMEDATEACHREPORTINGDATEONANINDIVIDUALBASISFORMAJORCLIENTS)NADDITIONALARGENUMBER
OF MINOR RECEIVABLES ARE GROUPED INTO HOMOGENOUS GROUPS AND ASSESSED FOR IMPAIRMENT COLLECTIVELY 4HE MAXIMUM EXPOSURE TO
CREDITRISKATTHEREPORTINGDATEISTHECARRYINGVALUEOFEACHCLASSOFlNANCIALASSETSDISCLOSEDIN.OTE4HE'ROUPEVALUATESTHE

Responsibility Report
CONCENTRATIONOFRISKWITHRESPECTTOTRADERECEIVABLESASLOWASITSCUSTOMERSARELOCATEDINSEVERALJURISDICTIONSANDINDUSTRIESAND
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

Carrying amount 12,637.56 1,839.60 1,064.23 160.84 95.49 15,797.72

Year ended March 31, 2018
'ROSS#ARRYINGAMOUNT      
financial

%XPECTEDCREDITLOSSES      

3PECIlC0ROVISION      
Carrying amount 8,813.34 1,019.14 630.30 87.36 146.34 10,696.48
Consolidated
Statements
statements
Financial
 396 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 41 : FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd...)
Financial instruments and cash deposits
#REDITRISKFROMBALANCESWITHBANKSANDlNANCIALINSTITUTIONSISMANAGEDBYTHE'ROUPSTREASURYDEPARTMENTINACCORDANCEWITHTHE
'ROUPS POLICY )NVESTMENTS OF SURPLUS FUNDS ARE MADE ONLY WITH APPROVED COUNTERPARTIES AND WITHIN CREDIT LIMITS ASSIGNED TO EACH
COUNTERPARTY#OUNTERPARTYCREDITLIMITSAREAPPROVEDBYTHE'ROUPS"OARDOF$IRECTORS4HELIMITSARESETTOMINIMISETHECONCENTRATION
OFRISKSANDTHEREFOREMITIGATElNANCIALLOSSTHROUGHCOUNTERPARTYSPOTENTIALFAILURETOMAKEPAYMENTS
4HE'ROUPSMAXIMUMEXPOSURETOCREDITRISKFORTHECOMPONENTSOFTHE"ALANCE3HEETAT-ARCHAND-ARCHISTHE
CARRYINGAMOUNTSASPROVIDEDIN.OTE
C. Liquidity risk
 4HE'ROUPMONITORSITSRISKOFASHORTAGEOFFUNDSUSINGALIQUIDITYPLANNINGTOOL4HE'ROUPSEEKSTOMANAGEITSLIQUIDITYREQUIREMENT
BYMAINTAININGACCESSTOBOTHSHORTTERMANDLONGTERMDEBTMARKETS)NADDITION'ROUPHASCOMMITTEDCREDITFACILITIESFROMBANKS
 4HE 'ROUPS OBJECTIVE IS TO MAINTAIN A BALANCE BETWEEN CONTINUITY OF FUNDING AND mEXIBILITY THROUGH THE USE OF BANK OVERDRAFTS
COMMERCIAL PAPERS BANK LOANS DEBENTURES AND lNANCE LEASES 4HE 'ROUP ASSESSED THE CONCENTRATION OF RISK WITH RESPECT TO
RElNANCINGITSDEBTANDCONCLUDEDITTOBELOW4HE'ROUPHASACCESSTOASUFlCIENTVARIETYOFSOURCESOFFUNDING
 4HETABLEBELOWSUMMARISESTHEMATURITYPROlLEOFTHE'ROUPSlNANCIALLIABILITIESBASEDONCONTRACTUALPAYMENTS

`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
 #ONCENTRATIONSARISEWHENANUMBEROFCOUNTERPARTIESAREENGAGEDINSIMILARBUSINESSACTIVITIESORACTIVITIESINTHESAMEGEOGRAPHICAL
REGIONORHAVEECONOMICFEATURESTHATWOULDCAUSETHEIRABILITYTOMEETCONTRACTUALOBLIGATIONSTOBESIMILARLYAFFECTEDBYCHANGESIN
ECONOMICPOLITICALOROTHERCONDITIONS#ONCENTRATIONSINDICATETHERELATIVESENSITIVITYOFTHE'ROUPSPERFORMANCETODEVELOPMENTS
AFFECTINGAPARTICULARINDUSTRY
 )NORDERTOAVOIDEXCESSIVECONCENTRATIONSOFRISKTHE'ROUPSPOLICIESANDPROCEDURESINCLUDESPECIlCGUIDELINESTOFOCUSONTHE
MAINTENANCEOFADIVERSIlEDPORTFOLIO)DENTIlEDCONCENTRATIONSOFCREDITRISKSARECONTROLLEDANDMANAGEDACCORDINGLY
E. Collateral
 !S'ROUPHASBEENRATEDINVESTMENTGRADEBYVARIOUSDOMESTICANDINTERNATIONALRATINGAGENCIESTHEREHASBEENNOREQUIREMENTOF
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'ROUPSCAPITALMANAGEMENTCAPITALINCLUDESISSUEDEQUITYCAPITALSHAREPREMIUMANDALLOTHEREQUITYRESERVES
ATTRIBUTABLETOTHEEQUITYHOLDERSOFTHEPARENT4HEPRIMARYOBJECTIVEOFTHE'ROUPSCAPITALMANAGEMENTISTOMAXIMISETHESHAREHOLDER

From the
VALUE
4HE 'ROUP MANAGES ITS CAPITAL STRUCTURE AND MAKES ADJUSTMENTS IN LIGHT OF CHANGES IN ECONOMIC CONDITIONS AND REQUIREMENTS 4O
MAINTAINORADJUSTTHECAPITALSTRUCTURETHE'ROUPMAYADJUSTTHEDIVIDENDPAYMENTTOSHAREHOLDERSRETURNCAPITALTOSHAREHOLDERSOR
ISSUENEWSHARES4HE'ROUPMONITORSCAPITALUSINGDEBTEQUITYRATIOWHICHISBORROWINGSDIVIDEDBY%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 

Directors and others

.OCHANGESWEREMADEINTHEOBJECTIVESPOLICIESORPROCESSESFORMANAGINGCAPITALDURINGTHEYEARSENDED-ARCHAND-ARCH


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

NOTES TO FINANCIAL STATEMENTS

NOTE – 43 : DISCLOSURE ON GOVERNMENT GRANTS
A. Revenue Grants
1 Subsidies on sales of SKO (PDS) and LPG (Domestic)
 3UBSIDIESONSALESOF3+/0$3 AND,0'$OMESTIC IN)NDIAAMOUNTINGTO `128.21 crore`CRORE ANDSUBSIDIES
ONSALESOF3+/AND,0'TOCUSTOMERSIN"HUTANAMOUNTINGTO`21.79 crore `CRORE HAVEBEENRECKONEDASPER
THESCHEMESNOTIlEDBY'OVERNMENTS
2 Compensation against under recoveries
 4HE'ROUPHASACCOUNTEDFOR"UDGETARY3UPPORTOF`4,110.18 crore`CRORE TOWARDSUNDER RECOVERYONSALE
OF3+/0$3 INTHE3TATEMENTOF0ROlTAND,OSSAS2EVENUE'RANTS
 %XPORTOF.OTIlED'OODSUNDER-%)3#LAIMS
 4HE'ROUPHASRECOGNISED`6.32 crore.), ONEXPORTOFNOTIlEDGOODSUNDER-ERCHANDISE%XPORTSFROM)NDIA3CHEME
-%)3 INTHE3TATEMENTOF0ROlTAND,OSSAS2EVENUE'RANTS
4 Stidend to apprentices under NATS scheme
 4HE'ROUPHASRECEIVEDGRANTOF`8.57 crore.), INRESPECTOFSTIPENDPAIDTOAPPRENTICESREGISTEREDUNDER.ATIONAL
!PPRENTICESHIP4RAINING3CHEME.!43 ANDTHESAMEHASBEENACCOUNTEDONNETBASISAGAINSTTRAININGEXPENSES
5 Grant in respect of revenue expenditure for research projects
 $URINGTHEYEARTHE'ROUPHASRECEIVEDREVENUEGRANTOF`0.95 crore`CRORE INRESPECTOFMEETINGOUTREVENUE
EXPENDITURESUCHAS-ANPOWER#ONSUMABLES4RAVEL#ONTINGENCYETCFORRESEARCHPROJECTSUNDERTAKENWITHVARIOUSAGENCIES
6 Incentive on sale of power
 'ROUPISGETTINGINCENTIVEFROM$EPARTMENTOF2ENEWABLE%NERGY'/)FORWINDPOWERGENERATIONOF%LECTRICITYATTHERATEOF
`PAISEFORPERUNITOFPOWERGENERATED4HE'ROUPHASRECEIVEDGRANTOF`3.08 croreDURINGTHECURRENTYEAR`
CRORE 
7 EPCG Grant
 'RANTRECOGNIZEDINRESPECTOFDUTYWAIVERONPROCUREMENTOFCAPITALGOODSUNDER%0#'SCHEMEOF#ENTRAL'OVTWHICHALLOWS
PROCUREMENTOFCAPITALGOODSINCLUDINGSPARESFORPREPRODUCTIONANDPOSTPRODUCTIONATZERODUTYSUBJECTTOANEXPORTOBLIGATION
OFTIMESOFTHEDUTYSAVEDONCAPITALGOODSPROCURED4HEUNAMORTIZEDGRANTAMOUNTASON-ARCHIS`58.92 crore
`CRORE $URINGTHEYEARTHE'ROUPHASRECOGNISED`205.39 crore`CRORE INTHESTATEMENTOF
PROlT ANDLOSS ASAMORTISATIONOFREVENUEGRANT 4HE 'ROUP EXPECTS TO MEET THE EXPORT OBLIGATIONS AND THEREFORE EQUIVALENT
DEFERREDGRANTHASNOTBEENTREATEDASLIABILITY
  %XCISEDUTYBENElTIN.ORTH%AST
 %XCISEDUTYEXEMPTIONOFOFGOODSMANUFACTUREDANDCLEAREDFROMNORTHEASTRElNERIESHASBEENRECKONEDATFULLVALUEIN
REVENUEANDONNETBASISINEXPENSESUNDER@%XCISE$UTYTOTHEEXTENTOFDUTYPAID &INANCIALIMPACTFORTHECURRENTYEARIS
`2,831.40 crore`CRORE 
9 Entry Tax exemption
 4HE'ROUPHASRECOGNISEDGRANTONNETBASISINRESPECTOFENTRYTAXEXEMPTIONOFCRUDE.APTHAPURCHASEDIN0ANIPAT2ElNERY
0ANIPAT.APTHA#RACKER#OMPLEXAND0ARADIP2ElNERYINCOSTOFMATERIALSCONSUMED0URCHASEOF3TOCK IN4RADE%NTRYTAX
EXEMPTIONONCRUDE.APTHAPROCUREDINTHESTATEOF(ARYANAAND/DISHAHASBEENRECEIVEDAMOUNTINGTONIL`
CRORE 
B. Capital Grants
1 OIDB Government Grant for strengthening distribution of SKO (PDS)
 4HE'ROUPHASRECEIVEDGOVERNMENTGRANTFROM/)$"/IL)NDUSTRY$IRECTORATE"OARD FORSTRENGTHENINGDISTRIBUTIONOF0$3
+EROSENEASPERTHEDIRECTIONSOF-O0.'TOBEUSEDINCONSTRUCTIONOF+,UNDERGROUND4ANK-ECHANICAL$ISPENSING5NITS
AND"ARREL3HED4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`1.28 crore `CRORE $URINGTHE
YEARTHE'ROUPHASRECOGNISED`0.28 crore`CRORE INSTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITALGRANTS
 60th Annual Report 2018-19 399

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$"4,SCHEMELAUNCHEDBY-/0.'TOWARDSDEVELOPMENTACQUISITIONOF
SOFTWARELICENSESDATAPROCESSINGEQUIPMENTFOREFFECTIVEIMPLEMENTATIONOFPLATFORMFORDISPESNINGOFSUBSIDYTOCUSTOMERS
PURCHASING,0'UNDER$"4,SCHEME4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHISNIL.), $URING
THEYEARTHE'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$3)2 4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`52.52 crore `CRORE 4HE
GOODSSOIMPORTEDORPROCUREDFROMLOCALMANUFACTURERSHALLNOTBETRANSFERREDORSOLDFORAPERIODOFlVEYEARSFROMDATEOF
INSTALLATION$URINGTHEYEARTHE'ROUPHASRECOGNISED`7.41 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSAS
AMORTISATIONOFCAPITALGRANTS

Description of
4 Capital Grant in respect of Research projects

Capitals
 4HE'ROUPHASRECEIVEDCAPITALGRANTFROMVARIOUSAGENCIESINRESPECTOFPROCUREMENTSETTINGUPOF#APITALASSETSFORRESEARCH
PROJECTSUNDERTAKEN4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`13.61 crore`CRORE 

Directors and others

$URINGTHEYEARTHE'ROUPHASRECOGNISED`3.64 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATION
OFCAPITALGRANTS
5 Capital Grant in respect of Entry Tax Exemption from Odisha Govt.

Board of
 %NTRY4AXEXEMPTIONRECEIVEDFROM/DISHA'OVERNMENTFOR0ARADIP2ElNERY0ROJECTHASBEENRECOGNIZEDAS#APITAL'RANTAND
GROSSEDUPWITHTHECONCERNED!SSETS4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`116.31 crore
`CRORE $URINGTHEYEARTHE'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-ARCHIS`78.65 crore`CRORE $URINGTHE

Discussion & Analysis

YEARTHE'ROUPHASRECOGNISED`4.38 crore`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITAL
GRANTS

Management’s
7 Capital Grant in respect of interest subsidy
 4HE'ROUPHASRECEIVEDCAPITALGRANTINRESPECTOFINTERESTSUBSIDYONLOANSTAKENFROM/)$"4HEUNAMORTIZEDCAPITALGRANT
AMOUNTASON-ARCHIS`6.21 crore`CRORE $URINGTHEYEARTHE'ROUPHASRECOGNISED`0.27 crore
`CRORE INTHESTATEMENTOFPROlTANDLOSSASAMORTISATIONOFCAPITALGRANTS

Responsibility Report
8 Capital Grant in form of Interest Free Loan
 4HE'ROUPHASRECEIVEDCAPITALGRANTINTHEFORMOFINTERESTFREELOANSFROM/RISSA'OVERNMENTFORAPERIODOFYEARS4HE

Business
UNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`1,352.98 crore`CRORE $URINGTHEYEARTHE'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

INSTALLATIONOF3OLAR0ANELSFOR0OWER'ENERATION4HEUNAMORTIZEDCAPITALGRANTAMOUNTASON-ARCHIS`4.34 crore

`CRORE $URINGTHEYEARTHE'ROUPHASRECOGNISED`0.16 crore `CRORE INTHESTATEMENTOFPROlTAND
LOSSASAMORTISATIONOFCAPITALGRANTS
financial

10 Capital Grant in respect of Hydrogen blended Natural Gas project at Rajghat DTC
 4HE'ROUPHASRECEIVEDCAPITALGRANTOF`6.00 crore .), TOCARRYOUTITSSTUDYPILOTPROJECTOFHYDROGENBLENDED#.'
Consolidated

( #.' FROM-INISTRYOF4RANSPORT#ORPORATION.#4 $%,() ASPERTHEDIRECTIONOF(ONBLE3UPREME#OURT4HE'ROUPHASNOT

Statements
statements
Financial

AMORTIZEDANYAMOUNTINSTATEMENTOF0ROlT,OSSACCOUNTASTHEPROJECTISUNDEREXECUTION
 400 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 44 : REVENUE FROM CONTRACTS WITH CUSTOMERS
4HE'ROUPISINTHEBUSINESSOFOILANDGASANDITEARNSREVENUEPRIMARILYFROMSALEOFPETROLEUMPRODUCTSPETROCHEMICALSANDOTHERS
COMPRISINGOF'AS%0AND/THERS2EVENUEARERECOGNIZEDWHENCONTROLOFTHEGOODSANDSERVICESARETRANSFERREDTOTHECUSTOMERATAN
AMOUNTTHATREmECTSTHECONSIDERATIONTOWHICHTHECOMPANYEXPECTSTOBEENTITLEDINEXCHANGEFORTHOSEGOODSANDSERVICES2EVENUEIS
MEASUREDBASEDONTHECONSIDERATIONSPECIlEDINACONTRACTWITHACUSTOMERANDEXCLUDESAMOUNTSCOLLECTEDONBEHALFOFTHIRDPARTIES
)NDETERMININGTHETRANSACTIONPRICEFORTHESALEOFPRODUCTSTHECOMPANYCONSIDERSTHEEFFECTSOFVARIABLECONSIDERATIONTHEEXISTENCE
OFSIGNIlCANTlNANCINGCOMPONENTSNON CASHCONSIDERATIONANDCONSIDERATIONPAYABLETOTHECUSTOMERIFANY 'ENERALLY'ROUPENTERS
INTOCONTRACTWITHCUSTOMERS
A /NDELIVEREDBASISINCASEOF2ETAIL3ALES,0'AND!VIATION
B /N%8 -)ASWELLASDELIVEREDBASISINCASEOF,UBESAND#ONSUMERS
C /N&/"OR#)&BASISDEPENDINGONTERMSOFCONTRACTINCASEOF%XPORTSALES
-AJORITY OF 'ROUPS SALES ARE TO RETAIL CATEGORY WHICH ARE MOSTLY ON CASH AND CARRY BASIS 'ROUP ALSO EXECUTE SUPPLY TO )NSTITUTIONAL
"USINESSES)" ,UBES!VIATIONONCREDITWHICHAREFORLESSTHANAYEAR
&ORMAINTAININGUNINTERRUPTEDSUPPLYOFPRODUCTSCUSTOMERSGENERALLYDEPOSITAMOUNTINADVANCEWITHTHE'ROUPAGAINSTWHICHORDERSFOR
PURCHASEOFPRODUCTSAREPLACEDBYTHECUSTOMERS"ASEDONTHESEORDERSSUPPLYISMAINTAINEDBYTHE'ROUPANDREVENUEISRECOGNISED
WHENTHEGOODSAREDELIVEREDTOTHECUSTOMERBYADJUSTINGTHEADVANCEFROMCUSTOMERS
'ROUPALSOEXTENDVOLUMESLABBASEDDISCOUNTSTOITSCUSTOMERSONCONTRACTTOCONTRACTBASISFORUPLIFTMENTOFPRODUCTSANDITISADJUSTED
INREVENUEASPERTHETERMSOFTHECONTRACT'ROUPALSORUNSLOYALTYPROGRAMMESANDINCENTIVESCHEMESFORITSRETAILANDBULKCUSTOMERS
,OYALTY POINTS ARE GENERATED AND ACCUMULATED BY THE CUSTOMERS ON DOING TRANSACTIONS AT 'ROUPS OUTLET WHICH CAN BE REDEEMED
SUBSEQUENTLYFORFUELPURCHASESFROM'ROUPOUTLETS2EVENUEISRECOGNISEDNETOFTHESELOYALTYPOINTSANDINCENTIVESCHEMES
"ESIDE THIS THOUGH NOT SIGNIlCANT 'ROUP ALSO UNDERTAKES CONSTRUCTION CONTRACTS ON DEPOSIT BASIS 2EVENUE IS RECOGNISED FOR THESE
CONTRACTSONINPUTBASEDONCOSTINCURRED3IMILARLYNON REFUNDABLEDEPOSITSRECEIVEDFROM2ETAIL/UTLETS2/S ARERECOGNISEDASREVENUE
OVERTIME

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)03TORESETC2EFER.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  
4HEPERFORMANCEOBLIGATIONISPARTOFTHECONTRACTANDTHEORIGINALEXPECTEDDURATIONISONEYEARORLESSINCASEOFDELIVEREDSALESADVANCE
FROMCUSTOMERS)NCASEOFCONSTRUCTIONCONTRACTSDEPOSITWORKSTHE#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!PRILANDTHE'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         

Directors and others

4OTAL,IABILITIES         
4OTAL!SSETS         
Investments            

Board of
4URNOVER          
0ROlT"EFORE4AXATION         
0ROVISIONFOR4AXATION             
0ROlT!FTER4AXATION         
0ROPOSED$IVIDEND                 

Directors’
0ERCENTAGEOFSHAREHOLDING         

Report
).2 )NDIAN2UPEES

Discussion & Analysis

-52 -AURITIANRUPEES
3,2 3RILANKAN2UPEES

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

NOTES TO FINANCIAL STATEMENTS

NOTE - 45 PART - “B” : STATEMENT OF SALIENT FEATURES OF THE FINANCIAL STATEMENT OF JOINTLY CONTROLLED
ENTITIES AND ASSOCIATES (FORM AOC - I)
1 Name of the Indian Oiltanking Lubrizol India Indian Oil Petronas Green Gas Limited Indian Oil
Associates/Joint Limited Private Limited Private Limited Skytanking Private
Ventures Limited

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 and others

Board of
      
Joint Control Joint Control Joint Control Joint Control Joint Control Joint Control Joint Control

Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated

Directors’
Report
     

Discussion & Analysis

Management’s
     

     

Responsibility Report
     

Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
 404 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 45 PART - “B” : STATEMENT OF SALIENT FEATURES OF THE FINANCIAL STATEMENT OF JOINTLY CONTROLLED
ENTITIES AND ASSOCIATES (FORM AOC - I) (Contd...)
1 Name of the Associates/ GSPL India Gasnet IndianOil Adani Mumbai Aviation Kochi Salem Indian Oil LNG
Joint Ventures Limited Gas Private Fuel Farm Facility Pipelines Private Private Limited
Limited Private Limited Limited
2 Latest Audited Balance -ARCH -ARCH -ARCH -ARCH -ARCH
3HEET$ATE
3 $ATEOFWHICH!SSOCIATE -ARCH /CTOBER /CTOBER *ANUARY -AY
OR*OINT6ENTUREWAS
associated or acquired
4 3HARESOF!SSOCIATE*OINT
6ENTURESHELDBYTHE
company on the year end
I.O     
II!MOUNTOF)NVESTMENT     
in Associates/Joint
6ENTURE
III%XTENTOF(OLDING     
 $ESCRIPTIONOFHOWTHEREIS Joint Control Joint Control Joint Control Joint Control Joint Control
SIGNIlCANTINmUENCE
 2EASONWHYTHEASSOCIATE Consolidated Consolidated Consolidated Consolidated Consolidated
JOINTVENTUREISNOT
consolidated
 .ETWORTHATTRIBUTABLETO     
Shareholding as per latest
audited Balance Sheet
8 0ROlT,OSS FORTHEYEAR     
!FTER4AX
I#ONSIDEREDIN     
Consolidation
II.OT#ONSIDEREDIN     
Consolidation
Following associates or joint ventures are yet to commence operations:
I  3UNTERA.IGERIA,TD
II  .0#), )NDIAN/IL.UCLEAR%NERGY#ORPORATION,IMITED
III  '30,)NDIA4RANSCO,IMITED
IV  +OCHI3ALEM0IPELINES0RIVATE,IMITED
V  2ATNAGIRI2ElNERY0ETROCHEMICALS,IMITED
VI  (INDUSTAN5RVARAKAND2ASAYAN,IMITED
VII  )NDRADHANUSH'AS'RID,IMITED
 %QUITY #ONSOLIDATION IN RESPECT OF FOLLOWING *OINTLY #ONTROLLED %NTITIES HAVE NOT BEEN CONSOLIDATED AS THE -ANAGEMENT HAS
DECIDEDTOEXITFROMTHESECOMPANIESANDPROVIDEDFORFULLDIMUNITIONINTHEVALUEOFINVESTMENT
 I 0ETRONET#),IMITED
 II )NDIAN/IL0ANIPAT0OWER#ONSURTIUM,IMITED
 60th Annual Report 2018-19 405

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
     

Directors and others

Joint Control Joint Control Associate Associate Associate Associate

Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated

Board of
    

     

Directors’
Report
    

Discussion & Analysis

     

Management’s
Responsibility Report
Business
Report on Corporate
Governance
Consolidated financial
Statements
statements
Financial
 406 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE - 46 : ADDITIONAL INFORMATION FOR CONSOLIDATED FINANCIAL STATEMENTS AS PER SCHEDULE-III TO
COMPANIES ACT, 2013
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)
Indian Oil Corporation        
Limited
Subsidiaries
Indian
#HENNAI0ETROLEUM        
Corporation Limited
)NDIAN#ATALYST0RIVATE      
Limited
Foreign  
)NDIAN/IL-AURITIUS         
Limited
,ANKA)/#0,#        
)/#-IDDLE%AST&:%        
)/#3WEEDEN!"        
)/#,53! )NC        
)ND/IL'LOBAL"6        
)/#,3INGAPORE04%        
Limited
,ESS-INORITY)NTERESTSIN        
all subsidiaries
Joint Venture
Indian
)NDIAN/ILTANKING,IMITED        
,UBRIZOL)NDIA0RIVATE        
Limited
)NDIAN/IL0ETRONAS0RIVATE       
Limited
'REEN'AS,IMITED        
)NDIAN/IL3KYTANKING       
0RIVATE,IMITED
$ELHI!VIATION&UEL&ACILITY        
0RIVATE,IMITED
Indian Synthetic Rubber        
0RIVATE,IMITED
)NDIAN/IL2UCHI"IOFUELS        
,,0
.0#), )NDIAN/IL.UCLEAR     
Energy Corporation Limited
'30,)NDIA4RANSCO      
Limited
 60th Annual Report 2018-19 407

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        

Directors and others

Rasayan Limited
2ATNAGIRI2ElNERY        

Board of
0ETROCHEMICALS,IMITED
)NDRADHANUSH'AS'RID       
Limited
Foreign
3UNTERA.IGERIA,TD        

Directors’
Report
Associates
Indian

Discussion & Analysis

!VI /IL)NDIA0RIVATE       
Limited

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#OMPANIESTHESAME
HASBEENINCLUDEDINTHElNANCIALSTATEMENTSOFRESPECTIVESUBSIDIARYCOMPANY Report on Corporate

 &OLLOWING#OMPANIESHAVENOTBEENCONSOLIDATEDINTHECONSOLIDATEDlNANCIALSTATEMENTSASTHE-ANAGEMENTHASDECIDEDTO
Governance

EXITFROMTHESE%NTITIESANDPROVIDEDFORFULLDIMUNITIONINVALUEOFINVESTMENT
A  0ETRONET#),TD*OINT6ENTURE
B  )NDIAN/IL0ANIPAT0OWER#ONSURTIUM,TD*OINT6ENTURE
financial

 'ROUPSSHAREOFLOSSIN0ETRONET6+,IMITEDAMOUNTINGTO`5.12 crore PROlTOF`CRORE HASNOTBEENRECOGNISED

ASTHECOMPANYHASACCUMULATEDLOSSESASON-ARCH4HE'ROUPSSSHAREOFUNACCOUNTEDACCUMULATEDLOSSESASON
Consolidated

-ARCHSTANDSAT`47.79 crore`CRORE 

Statements
statements
Financial
 408 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

NOTE – 47 : ADDITIONAL DISCLOSURES BY GROUP COMPANIES
 )MPAIRMENTLOSSINRESPECTOF#AUVERY"ASIN2ElNERY
 #0#, 3UBSIDIARY  HAS RElNERIES AT TWO LOCATIONS VIZ -ANALI AND .AGAPATTINAM #AUVERY "ASIN 2ElNERY  #ONSEQUENT TO
IMPLEMENTATIONOF"3 )6SPECIlCATIONSONAPAN)NDIABASISWEF!PRILANDINTHEABSENCEOFSECONDARYTREATMENTFACILITIES
THE"3n)))GRADEOFDIESELPRODUCTIONFROM#"2WOULDNOTBEMARKETABLEINTHELOCALMARKETENTAILINGSIGNIlCANTCOASTALEXPORT
UNDERRECOVERIESWHICHHASADVERSELYIMPACTEDTHEPROlTABILITYOF#"2ANDHENCETHEVALUEINUSEISNEGATIVE!CCORDINGLYINLINE
WITHTHEREQUIREMENTSOF)ND!3ANAMOUNTOF`0.93 Crore`#RORE HASBEENACCOUNTEDASIMPAIRMENTLOSSDURING
THEYEARBEINGTHEDIFFERENCEBETWEENTHECARRYINGVALUEOFADDITIONSINCLUDING#APITAL7ORKIN0ROGRESS DURINGTHEYEARANDTHE
RECOVERABLEVALUEOFTHEASSETS4HISIMPAIRMENTLOSSHASBEENRECOGNISEDINTHESTATEMENTOFPROlTANDLOSSASTHECARRYINGVALUEOF
THEASSETSISLOWERTHANTHEVALUEINUSEESTIMATEDRECOVERABLEAMOUNTOFTHIS#'54OTALIMPAIRMENTLOSSRECOGNIZEDASON-ARCH
 `67.04 Crore`#RORE &URTHERTHEOPERATIONSOFTHE#"2UNITHAVEBEENSTOPPEDFROM!PRIL)N
ESTIMATINGTHEVALUEINUSETHEAPPROXIMATEWEIGHTEDAVERAGECAPITALCOSTOF#0#,HASBEENCONSIDEREDASTHEDISCOUNTRATEUSED
TOCALCULATETHENETPRESENTVALUEOFTHEESTIMATEDFUTURECASHmOWSWHICHARESUBJECTTOCHANGESINTHEEXTERNALENVIRONMENT
4HEFAIRVALUELESSCOSTOFDISPOSALUSEDTODETERMINETHERECOVERABLEAMOUNTSOFTHEIMPAIREDASSETSARECLASSIlEDASLEVELFAIR
VALUEMEASUREMENTSASTHEESTIMATEDRECOVERABLEAMOUNTSARENOTBASEDONOBSERVABLEMARKETDATARATHERMANAGEMENTSBEST
ESTIMATES4HERESULTSOFIMPAIRMENTTESTARESENSITIVETOCHANGESINKEYJUDGEMENTSSUCHASCHANGESINCOMMODITYPRICESFUTURE
CHANGESINALTERNATEUSEOFASSETSETCWHICHCOULDRESULTININCREASEORDECREASEOFTHERECOVERABLEAMOUNTSANDRESULTINADDITIONAL
IMPAIRMENTCHARGESORRECOVERYOFIMPAIRMENTCHARGED
2 Acquisition of 17% participating interest in the Mukhaizna Oil Field, Oman
 )/#, 3INGAPORE 0TE ,TD 3UBSIDIARY  HAS ACQUIRED  PARTICIPATING INTEREST IN THE -UKHAIZNA /IL &IELD /MAN BY ACQUIRING
OFTHESHARECAPITALIN3HELL%XPLORATION0RODUCTION/MAN,TD3%0/, THESUBSIDIARYOF3HELL/VERSEAS(OLDING,TD4HE
ACQUISITIONOF3%0/,WASCOMPLETEDON!PRIL
 60th Annual Report 2018-19 409

About the
Report
NOTES TO FINANCIAL STATEMENTS
NOTE – 48 : OTHER DISCLOSURES

Chairman’s Desk
 )NTHEMATTEROF50%NTRY4AXCONSEQUENTUPON(ONBLE!LLAHABAD(IGH#OURTORDERDTD-AY0ARENT#OMPANYHASPAID
TOTALOUTSTANDINGPRINCIPALAMOUNTOFENTRYTAXANDCHALLENGEDTHEINTERESTAMOUNT!SPERTHELATESTSTATUSINTHEMATTER(ONBLE

From the
3UPREME#OURTUNDERITSORDERDATED!PRILREMANDEDTHEMATTERBACKTO(ONBLE!LLAHABAD(IGH#OURTTODECIDETHE
INTERESTAFRESHONMERIT!CCORDINGLY0ARENT#OMPANYlLEDSTAYAPPLICATIONIN(ONBLE!LLAHABAD(IGH#OURTON!PRILFOR
STAYOFINTERESTDEMANDRAISEDBYCOMMERCIALTAXDEPARTMENT4HEINTERESTLIABILITYINTHISREGARDHASBEENFULLYPROVIDEDFORINTHE
BOOKSOFACCOUNT

About IndianOil
 $URINGTHEYEAR0ARENT#OMPANYHASSETTLEDITSLIABILITYFORENTRYTAXINTHE3TATEOF"IHARCONSEQUENTTOTHEORDEROF#OMMERCIAL4AX
4RIBUNAL0ATNAONDIRECTIONBY(ONBLE3UPREME#OURT ANDACCORDINGLYANAMOUNTOF`1,155.02 croreBEINGPROVISIONNOMORE
REQUIREDHASBEENWRITTENBACKANDINCLUDEDINPROVISIONFORCONTINGENCIESWRITTENBACKIN/THER/PERATING2EVENUE
 4HEREVISIONOF%MPLOYEES0AYAND!LLOWANCESWASDUEWEF*ANUARY"ASEDONPRESIDENTIALDIRECTIVEISSUEDON/CTOBER
DUESINRESPECTOFEXECUTIVESHAVEBEENSETTLED(OWEVERTHEREVISIONOFPAYANDALLOWANCESFORWORKMENISUNDERlNALISATION
WHERELIABILITIESHAVEBEENASCERTAINEDONSIMILARLINES!NAMOUNTOF`1,719.00 Crore HASBEENCARRIEDASLIABILITYASON-ARCH

Description of
TOWARDSDUESONTHISACCOUNTBYTHE'ROUP

Capitals
 'OODSAND3ERVICES4AX'34 HASBEENIMPLEMENTEDWEF*ULYWHEREINSOMEOFTHEPETROLEUMPRODUCTSARESTILLOUTSIDEITS
AMBIT!CCORDINGLY'34ISBEINGLEVIEDONSOMEPRODUCTSASAGAINST%XCISE$UTYAPPLICABLEHITHERTO3INCEEXCISEDUTYISINCLUDED
INREVENUEAND'34ISNOTINCLUDEDINREVENUE4HUSTOENSURECOMPARABILITYONAPPLICABLEPRODUCTSSALESEXCLUDINGEXCISEDUTYIS

Directors and others

`6,07,524.57 Crore and `#ROREFORTHEYEARENDED-ARCHAND-ARCHRESPECTIVELY
 $URING THE YEAR THE 0ARENT #OMPANY HAS CONSIDERED THE DEPOSITS AGAINST ITS LIABILITY FOR LEAVE ENCASHMENT FUND AS QUALIFYING
INSURANCEPOLICYASPER)ND!3!CCORDINGLYITHASNETTEDOFFLIABILITYFORLEAVEENCASHMENTAGAINSTDEPOSITSFORLEAVEENCASHMENT

Board of
FUNDANDTHEAMOUNTDEPOSITEDINEXCESSOFLEAVEENCASHMENTLIABILITYISSHOWNUNDER!DVANCETO%MPLOYEE"ENElT4RUST&UND
2EFER.OTE
 $URINGTHEYEARTHE0ARENT#OMPANYHASREVIEWEDITSIMPAIRMENTPOLICYFOR0ROPERTY0LANTAND%QUIPMENT00% ANDHASCHANGED
ITSESTIMATEFORCASHmOWPROJECTIONSTOYEARSASAGAINSTYEARSEARLIER4HISBEINGTHElRSTYEAROFCHANGETHE0ARENT#OMPANY
ALSOTESTEDFORIMPAIRMENTCONSIDERINGCASHmOWPROJECTIONOFYEARSWHERETHERECOVERABLEAMOUNTEXCEEDEDTHECARRYINGVALUE

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

Discussion & Analysis

"0, HOUSEHOLDSASPER3%## 2URAL DATABASE4HESCHEMEWASLAUNCHEDON-AY$URINGTHEYEARTHESCHEME

Management’s
WASALSOEXTENDEDFORMALESWHERETHEREISNOWOMENINTHEFAMILY!SPERTHESCHEMETHEINITIALCOSTTOWARDSCONNECTIONCHARGES
2EFUNDABLEDEPOSIT WOULDBEBORNEBYTHE#ENTRAL'OVERNMENTFOREACHCARDHOLDER&EW3TATE'OVTSHASALSOEXTENDEDTHISSCHEME
TOOTHERBENEFECIARIES!SPERTHESCHEME/-#SWOULDPROVIDEANOPTIONFOR%-),OANSTOWARDSCOSTOFBURNERANDstRElLLTOTHE
0-59CONSUMERS4HELOANAMOUNTISTOBERECOVEREDFROMTHESUBSIDYAMOUNTPAYABLEBYTHEGOVERNMENTTOTHECUSTOMERSONEACH
RElLLSALE$URINGTHEYEARDISCOUNTINGOFTHELOANHASBEENDONEBASEDONASSUMPTIONOFRElLLSINAYEARANDAVERAGESUBSIDYOF

Responsibility Report
`PERCYLINDERASLOANRECOVERY
 4HEAMOUNTOFOUTSTANDINGASON-ARCHTOWARDS0-59CLAIMFROM#ENTRAL'OVERNMENTIS`1,495.63 Crore`
#ROREASON-ARCH ANDLOANFROM0-59CONSUMERSIS`3,111.32 Crore`#ROREASON-ARCH NETOF

Business
RECOVERYTHROUGHSUBSIDY !GAINSTTHEABOVELOANAPROVISIONFORDOUBTFULAMOUNTINGTO`1,141.71 Crore`#RORE 
HASBEENCREATEDASON-ARCHAGAINSTTHEBENElCIARIESWHOHAVENOTTAKENANYRElLLDURINGPASTSIXMONTHS
 0ARENT#OMPANYHASDECIDEDTOEXITTHE*OINT6ENTUREWITH)NDIAN/IL2UCHI"IOFUELS,,0ANDHASGIVENNOTICEOFITSEXITFROMTHE Report on Corporate

,IMITED,IABILITY0ARTNERSHIP,,0 TOTHEOTHER*6PARTNERVIZ2UCHI3OYA)NDUSTRIESASWELLASTOTHE,,0ON$ECEMBER

STATINGTHATITWILLEXITTHE,,0WEF*UNARY4HEENTIREINVESTMENTOF`#ROREHASBEENWRITTENOFF!CCORDINGLY
Governance

PROVISIONMADEFORDIMUNITIONINVALUEOFINVESTMENTINPASTOF`#ROREINEARLIERYEARISWRITTENBACKINOTHERINCOME2EFER
.OTE
Consolidated financial
Statements
statements
Financial
 410 Indian Oil Corporation Limited 2nd Integrated Annual Report

NOTES TO FINANCIAL STATEMENTS

Note – 48 : OTHER DISCLOSURES (Contd...)
 0URSUANTTOTHE"OARDAPPROVALFORFORMATIONOFA*OINT6ENTURECOMPANYBETWEEN)NDIAN/IL#ORPORATION,TDAND#OAL)NDIA,TD
FORTRANSFEROFEXPLOSIVESBUSINESSTOTHESAIDVENTURECOMPANYONSLUMPSALEBASISATAVALUEOF`311.00 crore.ET!SSETS7$6
OF`#RORE CONSENTOF.ITI!YOGWASINITIALLYRECEIVEDFORFORMATIONOFTHE*6BYLETTERDATED!PRIL(OWEVERTHE
FORMATIONOFTHE*6ISSTILLPENDINGINVIEWOFDELIBERATIONSAT.)4)!YOGINTHEMATTER!CCORDINGLYTHEEXPLOSIVEBUSINESSCONTINUES
TOBEINOPERATIONASON-ARCH
 0URCHASEOFCRUDEOILFROM/IL)NDIA,IMITEDANDSOMEOTHEROILlELDSHASBEENACCOUNTEDFORPROVISIONALLYPENDINGlNALIZATIONOF
AGREEMENTSWITHRESPECTIVEPARTIES!DJUSTMENTSIFANYWILLBEMADEONlNALIZATIONOFAGREEMENTS
 4RANSACTIONSWITHOTHER/IL-ARKETING#OMPANIESAREJOINTLYRECONCILEDONANONGOINGBASIS
 4HEREARENOSIGNIlCANTSUBSEQUENTEVENTSTHATWOULDREQUIREADJUSTMENTSORDISCLOSURESINTHE&INANCIAL3TATEMENTSASONTHE
"ALANCE3HEETDATE
 0REVIOUSYEARSCOMPARATIVElGURESHAVEBEENREGROUPEDWHEREVERNECESSARY&IGURESINBRACKETSINDICATEDEDUCTIONS

3D 3D 3D

(Sanjiv Singh) (A. K. Sharma) (Kamal Kumar Gwalani)
Chairman $IRECTOR&INANCE Company Secretary
$).  $).  !#3 

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
&IRM2EGN.O. &IRM2EGN.O7 &IRM2EGN.O% &IRM2EGN.O%

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

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)NDIAHAVECONDUCTEDASUPPLEMENTARYAUDITOFTHElNANCIALSTATEMENTSOF)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

Discussion & Analysis

(Nandana Munshi)
Director General of Commercial Audit

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&URTHER3ECTION
  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

For and on behalf of the

Comptroller & Auditor General of India

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

Directors and others

 )NDRADHANUSH'AS'RID,IMITED *OINT6ENTURE
 2ATNAGIRI2ElNERYAND0ETROCHEMICALS,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

Discussion & Analysis

 )NDIAN/IL3KYTANKING0RIVATE,IMITED Joint venture
 )NDIAN3YNTHETIC2UBBER0RIVATE,IMITED Joint venture

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

 3UNTERA.IGERIA,IMITED Joint venture

Statements
Financial
CAG
 414 Indian Oil Corporation Limited 2nd Integrated Annual Report

Indian Oil Corporation Limited

[CIN – L23201MH1959GOI011388]
2EGD/FlCE@)NDIAN/IL"HAVAN' !LI9AVAR*UNG-ARG"ANDRA% -UMBAI 
www.iocl.com.
4EL &AX %MAIL)DINVESTORS INDIANOILIN7EBSITEWWWIOCLCOM

NOTICE
./4)#%ISHEREBYGIVENTHATTHE60 Annual General Meeting OFTHEMEMBERSOF INDIAN OIL CORPORATION LIMITEDWILLBEHELD
th

at Nehru Centre Auditorium, Dr. Annie Besant Road, Worli, Mumbai – 400018 on WednesdayTHE August 28, 2019 at 10:00 a.m. to
TRANSACTTHEFOLLOWINGBUSINESS
ORDINARY BUSINESS
 4ORECEIVECONSIDERANDADOPTTHEAUDITED3TANDALONEASWELLAS#ONSOLIDATED&INANCIAL3TATEMENTOFTHE#OMPANYFORTHElNANCIAL
YEARENDED-ARCHTOGETHERWITH2EPORTSOFTHE$IRECTORSANDTHE!UDITORSTHEREON
 4ODECLARETHE&INAL$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$IRECTORFORAPERIODOFONEYEAR
 4OCONSIDERANDIFTHOUGHTlTTOPASSWITHORWITHOUTMODIlCATIONSTHEFOLLOWINGRESOLUTIONASASpecial Resolution:
 hRESOLVED THATPURSUANTTOTHEPROVISIONSOF3ECTIONSANDREADWITH3CHEDULE)6ANDOTHERAPPLICABLEPROVISIONSIF
ANYOFTHE#OMPANIES!CTANDTHE#OMPANIES!PPOINTMENTAND1UALIlCATIONOF$IRECTORS 2ULESANDTHEAPPLICABLE
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$ECEMBERBEAND
ISHEREBYRE APPOINTEDASAN)NDEPENDENT$IRECTOROFTHE#OMPANYNOTLIABLETORETIREBYROTATIONFORASECONDTERMOF/NE YEAR
WEF$ECEMBERv
 4ORATIFYTHEREMUNERATIONOFTHE#OST!UDITORSFORTHElNANCIALYEARENDING-ARCH
 4OCONSIDERANDIFTHOUGHTlTTOPASSWITHORWITHOUTMODIlCATIONSTHEFOLLOWINGRESOLUTIONASANOrdinary Resolution:
 hRESOLVED THATPURSUANTTOTHEPROVISIONSOF3ECTIONANDOTHERAPPLICABLEPROVISIONSOFTHE#OMPANIES!CTANDTHE
#OMPANIES!UDITAND!UDITORS 2ULESINCLUDINGANYSTATUTORYMODIlCATIONS ORRE ENACTMENTTHEREOFFORTHETIMEBEINGIN
FORCETHEAGGREGATEREMUNERATIONOF`,AKHSPLUSAPPLICABLETAXESANDOUTOFPOCKETEXPENSESPAYABLETOTHE#OST!UDITORS
APPOINTEDBYTHE"OARDOF$IRECTORSOFTHE#OMPANYTOCONDUCTTHEAUDITOFTHECOSTRECORDSOFTHEVARIOUSUNITSOFTHE#OMPANYFOR
THElNANCIALYEARENDING-ARCHBEANDISHEREBYRATIlEDv
 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$ISTRIBUTION0ROJECTSINVARIOUS
'EOGRAPHICAL!REAS
 4OCONSIDERANDIFTHOUGHTlTTOPASSWITHORWITHOUTMODIlCATIONSTHEFOLLOWINGRESOLUTIONASASpecial Resolution:
 hRESOLVED THATPURSUANTTOTHEPROVISIONSOF3ECTIONANDOTHERAPPLICABLEPROVISIONSIFANYOFTHE#OMPANIES!CT
INCLUDINGAMENDMENTSTHEREOFGOVERNINGPROVISIONSOFTHE3ECURITIESAND%XCHANGE"OARDOF)NDIA,ISTING/BLIGATIONSAND$ISCLOSURE
2EQUIREMENTS 2EGULATIONS,ISTING2EGULATIONS !RTICLESOF!SSOCIATIONOFTHE#OMPANYALLOTHERPROVISIONSOFAPPLICABLE
LAWSRULESANDREGULATIONSANDSUBJECTTOSUCHAPPROVALSCONSENTSSANCTIONSANDPERMISSIONSASMAYBENECESSARYAPPROVALOF
 60th Annual Report 2018-19 415

About the
Report
THE-EMBERSOFTHE#OMPANYBEANDISHEREBYACCORDEDTOAUTHORIZETHE"OARDOF$IRECTORSOFTHE#OMPANYWHICHEXPRESSIONSHALL
BEDEEMEDTOINCLUDEA#OMMITTEETHEREOF TOPROVIDE#ORPORATE'UARANTEES INFAVOUROFBANKSONBEHALFOF)NDIAN/IL !DANI'AS
0VT,TD)/!'0, A*6#OMPANYFORISSUANCEOF0ERFORMANCE"ANK'UARANTEESINFAVOUROF0ETROLEUMAND.ATURAL'AS2EGULATORY
"OARDFOR#ITY'AS$ISTRIBUTION0ROJECTSINVARIOUS'EOGRAPHICAL!REASFORANAMOUNTNOTEXCEEDINGINAGGREGATE`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
INCLUDINGSIGNINGANDEXECUTINGSUCHDEEDSAGREEMENTSDOCUMENTSANDWRITINGSANDTOMAKESUCHlLINGSDEEMEDNECESSARYTO
GIVEEFFECTTOTHEABOVERESOLUTIONv

About IndianOil
Description of
2EGISTERED/FlCE By Order of the Board of Directors
IndianOil Bhavan

Capitals
' !LI9AVAR*UNG-ARG
"ANDRA%AST
-UMBAI 

Directors and others

3D
(Kamal Kumar Gwalani)
Date: 15th July 2019 Company Secretary

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#OMPANYASPERATTACHEDFORMATDULYlLLEDSTAMPEDSIGNEDNOTLATERTHANHOURSBEFORETHE
commencement of the meeting.
 !SPERTHEPROVISIONSOFTHE#OMPANIES!CTAPERSONCANACTASAPROXYONBEHALFOFMEMBERSNOTEXCEEDINGlFTYANDHOLDING
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!CTRELATINGTOTHE3PECIAL"USINESS
TOBETRANSACTEDATTHE-EETINGISANNEXEDHERETO
C  -EMBERS0ROXIES!UTHORISED2EPRESENTATIVESAREREQUESTEDTOBRINGTHEATTENDANCESLIPDULYlLLEDANDSIGNEDALONGWITHCOPYOF
!NNUAL2EPORTTOTHEMEETING
D  4HE!NNUAL2EPORTDULYCIRCULATEDTOTHEMEMBERSOFTHE#OMPANYISALSOAVAILABLEONTHE#OMPANYSWEBSITEATWWWIOCLCOMAND
www.iocl.com.
ALSOONTHEWEBSITESOF3TOCK%XCHANGESANDE VOTINGAGENCY
E  2ELEVANTDOCUMENTSREFERREDTOINTHEACCOMPANYINGNOTICEAREOPENFORINSPECTIONBYTHEMEMBERSATTHE2EGISTERED/FlCEOFTHE
#OMPANYONALLWORKINGDAYSIE-ONDAYTO&RIDAYBETWEENAMANDPMUPTOTHEDATEOFTHE!'-
F The Register of members and Share Transfer Books of the Company will remain closed from Friday, August 23, 2019 to Wednesday,
!UGUSTBOTHDAYSINCLUSIVE FORTHEPURPOSEOFASCERTAININGTHEELIGIBILITYOFMEMBERSFORPAYMENTOFlNALDIVIDEND4HE
lNALDIVIDENDPAYABLEON%QUITY3HARESIFAPPROVEDBYTHEMEMBERSWILLBEPAIDTOTHOSEMEMBERSWHOSENAMESAPPEARONTHE
#OMPANYS2EGISTEROFMEMBERSANDASPERBENElCIALOWNERSPOSITIONRECEIVEDFROM.3$,#$3,ASATTHECLOSEOFWORKINGHOURS
ON!UGUST
G  2ESERVE"ANKOF)NDIAHASINITIATED.%#3.ATIONAL%LECTRONIC#LEARING3YSTEM FACILITYFORCREDITOFDIVIDENDDIRECTLYTOTHEBANK
ACCOUNTOFTHEMEMBERS(ENCEMEMBERSAREREQUESTEDTOREGISTERTHEIR"ANK!CCOUNTDETAILS#ORE"ANKING3OLUTIONSENABLED
ACCOUNTNUMBERDIGIT-)#2CODEDIGIT)&3#CODE INRESPECTOFSHARESHELDINDEMATERIALIZEDFORMWITHTHEIRRESPECTIVE
$EPOSITORY0ARTICIPANTIETHEAGENCYWHERETHEDEMATACCOUNTHASBEENOPENEDANDINRESPECTOFSHARESHELDINPHYSICALFORMWITH
THE24!+ARVY&INTECH0VT,TD+ARVY3ELENIUM4OWER"0LOT 'ACHIBOWLI&INANCIAL$ISTRICT.ANAKRAMGUDA(YDERABADn
4EL.OS &AX.O % MAIL!DDRESSEINWARDRIS KARVYCOM
H  -EMBERSMAYSENDTHEIRREQUESTSFORCHANGEUPDATIONOF!DDRESS"ANK!CDETAILS%#3MANDATE%MAILADDRESS.OMINATIONS
I For shares held in dematerialised form -TOTHEIRRESPECTIVE$EPOSITORY0ARTICIPANT
II For shares held in physical form -TOTHE24!ATTHEADDRESSGIVENATG ABOVEORATTHEREGISTEREDOFlCEOFTHE#OMPANY
I  .ON 2ESIDENT)NDIANMEMBERSAREREQUESTEDTOINFORMTHE24!ATTHEADDRESSGIVENATG ABOVEIMMEDIATELYABOUT
I  #HANGEINTHEIRRESIDENTIALSTATUSONRETURNTO)NDIAFORPERMANENTSETTLEMENT
II  0ARTICULARSOFTHEIRBANKACCOUNTMAINTAINEDIN)NDIAWITHCOMPLETENAMEBRANCHACCOUNTTYPEACCOUNTNUMBERANDADDRESS
OFTHEBANKWITHPINCODENUMBERIFNOTFURNISHEDEARLIER
J  4HE3ECURITIESAND%XCHANGE"OARDOF)NDIA3%") HASMANDATEDTHESUBMISSIONOF0ERMANENT!CCOUNT.UMBER0!. BYEVERY
PARTICIPANTINSECURITIESMARKETFAILINGWHICHTHEDEMATACCOUNTFOLIONOWOULDBESUSPENDEDFORTRADING-EMBERSHOLDINGSHARES
INELECTRONICFORMARETHEREFOREREQUESTEDTOSUBMITTHEIR0!.TOTHE$EPOSITORY0ARTICIPANTSWITHWHOMTHEYAREMAINTAININGTHEIR
DEMATACCOUNTS-EMBERSHOLDINGSHARESINPHYSICALFORMCANSUBMITTHEIR0!.DETAILSTOTHE#OMPANYORITS24!ATTHEADDRESS
GIVENATG ABOVE
K  3%")VIDECIRCULARDATED$ECEMBERHASDIRECTEDTHATNOTRANSFEROFSHARESINPHYSICALFORMWOULDBEPERMITTEDWEF!PRIL
!CCORDINGLYMEMBERSHOLDINGSHARESINPHYSICALFORMAREREQUESTEDTODEMATERIALISETHEIRSHARECERTIlCATES
L  !SPERTHEPROVISIONSOFSECTION OFTHE#OMPANIES!CTTHEDIVIDENDS WHICHREMAINSUNPAIDUNCLAIMEDFORAPERIOD
OFYEARSISTOBETRANSFERREDTOTHE)NVESTOR%DUCATION0ROTECTION&UND)%0& ESTABLISHEDBYTHE#ENTRAL'OVERNMENTATTHEEND
OFTHEthYEAR!CCORDINGLYTHE#OMPANYHASTRANSFERREDALLUNPAIDUNCLAIMEDDIVIDENDDECLAREDUPTOTHElNANCIALYEAR TO
)%0&ONTHERESPECTIVEDATES
 60th Annual Report 2018-19 417

About the
Report
 &URTHERSECTION OFTHE#OMPANIES!CTREADWITHRULESMADETHEREUNDERPROVIDETHATALLSHARESINRESPECTOFWHICH
DIVIDENDHASNOTBEENPAIDORCLAIMEDFORSEVENCONSECUTIVEYEARSORMORESHALLBETRANSFERREDBYTHE#OMPANYINTHEDEMATACCOUNT
OF)%0&AUTHORITY4HE#OMPANYHADSENTREMINDERLETTERTOALLSUCHMEMBERSWHOSEDIVIDENDHADREMAINEDUNPAIDUNCLAIMEDFOR
ACONSECUTIVEPERIODOFYEARSIE TO WITHAREQUESTTOCLAIMTHEDIVIDENDSFAILINGWHICHTHESHARESWOULD

Chairman’s Desk
BETRANSFERREDTOTHE)%0&!UTHORITYONTHEDUEDATE4HEREAFTERSUCHSHARESWERETRANSFERREDTOTHEDEMATACCOUNTOFTHE)%0&
!UTHORITYON4HEDETAILSOFSUCHSHARESAREHOSTEDONTHEWEBSITEOFTHE#OMPANYWWWIOCLCOM
www.iocl.com.

From the
 )TMAYPLEASEBENOTEDUPONCOMPLETIONOFYEARSTHE#OMPANYWOULDTRANSFERTHEUNPAIDUNCLAIMEDDIVIDENDFORTHElNANCIAL
YEAR IN.OVEMBER&URTHERTHESHARESINRESPECTOFWHICHDIVIDENDFORlNANCIALYEAR HASREMAINEDUNPAID
UNCLAIMEDFORACONSECUTIVEPERIODOFYEARSIEFROM TO WOULDALSOBETRANSFERREDTOTHEDEMATACCOUNTOF
)%0&!UTHORITYINTHEMONTHOF.OVEMBER4HEDETAILSOFSUCHUNPAIDUNCLAIMEDDIVIDENDS 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!CTREADWITH#OMPANIES-ANAGEMENTAND!DMINISTRATION 2ULES
!NNUAL2EPORTOFTHE#OMPANYHASBEENSENTTHROUGHEMAILTOTHOSEMEMBERSWHOSEEMAIL)$ISREGISTEREDWITHTHE#OMPANY

Capitals
$EPOSITORY4HOSEMEMBERSWHOHAVENOTREGISTEREDTHEIREMAIL)$AREREQUESTEDTOWRITETOTHE24!THEIR$EPOSITORY0ARTICIPANT
FORREGISTERINGTHESAME)NCASEANYMEMBERWANTSAPHYSICALCOPYOFTHE!NNUAL2EPORTHEMAYSENDAREQUESTTOTHE#OMPANY
3ECRETARYATTHE2EGISTEREDOFlCEOFTHE#OMPANYORTOTHE24!ATTHEADDRESSGIVENATPOINTG ABOVE

Directors and others

N  #OMPANYISFACILITATINGLIVEWEBCASTOFTHEPROCEEDINGSOFTHE!'-4HEMEMBERSCANWATCHTHEWEBCASTONTHE!'-DAYIEON
7EDNESDAYth!UGUSTFROMAMBYLOGGINGONTOTHEPAGEHTTPSEVOTINGKARVYCOMUSINGTHEE VOTINGCREDENTIALS
https://evoting.karvy.com using the e-voting credentials

Board of
O  )NTERMSOF3ECTIONOF#OMPANIES!CTREADWITHTHE#OMPANIES-ANAGEMENTAND!DMINISTRATION !MENDMENT2ULES
AND2EGULATIONOF3%"),ISTING/BLIGATIONSAND$ISCLOSURE2EQUIREMENTS 2EGULATIONSTHE#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

Discussion & Analysis

 BYEMAILTOTHOSEMEMBERSWHOSEEMAIL)$ISREGISTEREDWITHTHE#OMPANY$EPOSITORY0ARTICIPANT

Management’s
 BYPOSTTOTHOSEMEMBERSWHOSEEMAIL)$ISNOTREGISTEREDWITHTHE#OMPANY$EPOSITORY0ARTICIPANT
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I https://evoting.karvy.com
,AUNCHINTERNETBROWSERBYTYPINGTHE52,HTTPSEVOTINGKARVYCOM

Responsibility Report
• &ORlRSTTIMEUSERS
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Business
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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 /NSUCCESSFULLOGINTHESYSTEMWILLPROMPTYOUTOSELECTTHEh%6%.vIE)NDIAN/IL#ORPORATION,IMITED
III /NTHEVOTINGPAGEENTERTHENUMBEROFSHARESWHICHREPRESENTSTHENUMBEROFVOTESASONTHE#UT/FFDATE UNDERh&/2
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VI 9OUMAYTHENCASTYOURVOTEBYSELECTINGANAPPROPRIATEOPTIONANDCLICKONh3UBMITv
VII !CONlRMATIONBOXWILLBEDISPLAYED#LICKh/+vTOCONlRMELSEh#!.#%,vTOMODIFY/NCEYOUCONlRMYOUWILLNOTBE
ALLOWEDTOMODIFYYOURVOTE$URINGTHEVOTINGPERIODMEMBERSCANLOGINANYNUMBEROFTIMESTILLTHEYHAVEVOTEDONTHE
2ESOLUTIONS 
VIII #ORPORATE)NSTITUTIONALMEMBERSAREREQUIREDTOSENDSCANNEDCERTIlEDTRUECOPY0$&&ORMAT OFTHE"OARD2ESOLUTION
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MENTIONEDDOCUMENTSSHOULDBEINTHENAMINGFORMAT “IOCL 60 AGM”.
  4HEE VOTINGWOULDCOMMENCEON3ATURDAY!UGUSTAT!-)34 ANDENDON4UESDAY!UGUSTAT
0-)34 $URINGTHISPERIODTHE ELIGIBLE MEMBERS OF THE #OMPANY MAY CAST THEIR VOTE BY ELECTRONIC MEANS INTHE
MANNERANDPROCESSSETOUTHEREINABOVE4HEE VOTINGMODULESHALLBEDISABLEDFORVOTINGTHEREAFTER
  &ACILITYFORVOTINGWOULDALSOBEMADEAVAILABLEATTHE!'-VENUE-EMBERSWHOCASTTHEIRVOTESELECTRONICALLYSHOULDNOTVOTE
ATTHE!'-(OWEVERINCASEAMEMBERVOTESELECTRONICALLYASWELLASATTHE!'-THEVOTECASTATTHE!'-WILLBEIGNORED
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  )NCASEOFANYQUERYPERTAININGTOE VOTINGPLEASEVISIT(ELP&!1SSECTIONOFHTTPSEVOTINGKARVYCOM
  4HEVOTINGRIGHTSOFTHEMEMBERSSHALLBEINPROPORTIONTOTHEIRSHARESOFTHEPAIDUPEQUITYSHARECAPITALOFTHE#OMPANYASON
THECUT OFFDATE
  4HE#OMPANYHASAPPOINTED3HRI.RUPANG$HOLAKIAOF$HOLAKIA!SSOCIATES,,0APRACTICING#OMPANY3ECRETARYAS3CRUTINIZER
ANDINHISABSENCE3HRI"6$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#OMPANYANDSUBMITNOTLATERTHANTWODAYSOFCONCLUSIONOFTHEMEETINGACONSOLIDATEDSCRUTINISERSREPORTOFTHETOTAL
VOTESCASTINFAVOURORAGAINSTIFANYTOTHE#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

A BRIEF RESUME OF DIRECTORS PROPOSED TO BE REAPPOINTED IS GIVEN BELOW:-

Item No. 3 - To appoint a Director in place of Dr. S.S.V. Ramakumar (DIN: 07626484), who retires by rotation and is eligible for
reappointment.
$R3362AMAKUMAR$IRECTOR2$ AGEDYEARSWASINDUCTEDONTHE"OARDOFTHE#OMPANYONFORAPERIODOF
YEARSORTILLTHEDATEOFHISSUPERANNUATIONWHICHEVERISEARLIER(EISA0H$IN#HEMISTRYFROMTHE5NIVERSITYOF2OORKEECURRENTLY))4
2OORKEE (EJOINED)NDIAN/IL2$#ENTREINANDHASOVERYEARSOFEXPERIENCEINRESEARCHANDDEVELOPMENTANDDOWNSTREAM
HYDROCARBON SECTOR NOTABLY IN THE AREAS OF 2ElNERY PROCESS RESEARCH STREAMS !UTOMOTIVE ,UBRICANTS .ANO TECHNOLOGY 2ESEARCH
4ECHNOLOGYPROMOTIONFORECASTING4RIBOLOGYETC(EHASAUTHORED)NDIAN/IL2$JOURNEYBOOK@)NVENTINGTHE&UTUREANDHASOVER
RESEARCHPUBLICATIONSINNATIONALANDINTERNATIONALJOURNALS
 60th Annual Report 2018-19 419

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
FORAPERIODOFYEARSORTILLTHEDATEOFHISSUPERANNUATIONWHICHEVERISEARLIER(EISA-ECHANICAL%NGINEERFROM")430ILANIANDA
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 

Directors and others

Relationship between Directors and Key Managerial Personnel .ONE

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$). AGEDYEARSWASAPPOINTEDASAN)NDEPENDENT$IRECTOROFTHE#OMPANYFORAPERIODOF
YEARSWEF$ECEMBERANDHEHELDOFlCEUPTO$ECEMBERhlRSTTERMv 
)NDIAN/IL BEING A 'OVERNMENT #OMPANY THE APPOINTMENT OF $IRECTORS INCLUDING )NDEPENDENT $IRECTORS  IS MADE BY 'OVERNMENT OF

Directors’
Report
)NDIA4HE-INISTRYOF0ETROLEUMAND.ATURAL'ASVIDEITSLETTERDATED.OVEMBERHADRE APPOINTED3HRI0ARINDU+"HAGATAS
.ON OFlCIAL)NDEPENDENT$IRECTORFORAPERIODOFONEYEARFROMTHEDATEOFCOMPLETIONOFHISEXISTINGTENUREIEUPTO$ECEMBER

Discussion & Analysis

3HRI0ARINDU+"HAGATA#HEMICAL%NGINEERANDALAWGRADUATEISALEGALPRACTITIONERINTAXATIONANDlNANCIALSERVICES3HRI"HAGATHAS
VASTEXPERIENCEINUNDERSTANDINGlNANCIALSOCIALANDECONOMICASPECTSOFGOVERNANCEANDITSADMINISTRATION(ISEXPERTISEINTECHNICAL

Management’s
DOMAINGIVESHIMANINSIGHTTOEVALUATETHINGSWITHBROADERPERSPECTIVES(EWASAMEMBEROFTHE"OARDOF$IRECTORSOF+ANDLA0ORT4RUST
WHEREHEPLAYEDAVITALROLEINTECHNOLOGICALREFORMS7ITHASOLUTION CENTRICAPPROACHHISWORKHASBEENACKNOWLEDGEDINVARIOUSPRIVATE
ANDPUBLIClRMSANDGOVERNMENTBODIESWHEREHEWASAPPOINTEDINADVISORYPOSITION(EHASBEENINVOLVEDIN#32ACTIVITIESTHROUGH
VARIOUS.'/STRUSTSANDRELIGIOUSINSTITUTIONSFORTHEBENElTOFSOCIETYATLARGE

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
3ECTION OFTHE!CTANDUNDERTHE3%"),ISTING/BLIGATIONSAND$ISCLOSURE2EQUIREMENTS 2EGULATIONS3HRI0ARINDU+
Governance

"HAGATISNOTDISQUALIlEDFROMBEINGAPPOINTEDAS$IRECTORINTERMSOF3ECTIONOFTHE#OMPANIES!CTANDISNOTDEBARRED
FROMHOLDINGTHEOFlCEOF$IRECTORBYVIRTUEOFANYORDEROF3%")ANYOTHERAUTHORITY
Notice
Statements
Financial
AGM
 420 Indian Oil Corporation Limited 2nd Integrated Annual Report

)NTHEOPINIONOFTHE"OARD3HRI0ARINDU"HAGATFULlLSTHECRITERIAOFINDEPENDENCEASSPECIlEDINTHE#OMPANIES!CTAND3%")

,ISTING/BLIGATIONS$ISCLOSURE2EQUIREMENTS 2EGULATIONSANDISINDEPENDENTOFTHE-ANAGEMENT
.ONE OF THE $IRECTORS+EY -ANAGERIAL 0ERSONNEL OF THE #OMPANY EXCEPT 3HRI 0ARINDU + "HAGAT IS INTERESTED OR CONCERNED IN THE
RESOLUTION
!SREQUIREDUNDERSECTION3ECTION OFTHE#OMPANIES!CTANDRULESNOTIlEDTHEREUNDERTHERE APPOINTMENTOF)NDEPENDENT
$IRECTORFORSECONDTERMREQUIRESAPPROVALOFMEMBERSBYSPECIALRESOLUTION

The Board, therefore, recommends the Special Resolution for approval by the members.
)TEM.O  4ORATIFYTHEREMUNERATIONOFTHE#OST!UDITORSFORTHElNANCIALYEARENDING-ARCH
4HE"OARDONTHERECOMMENDATIONOFTHE!UDIT#OMMITTEEHASAPPROVEDTHEAPPOINTMENTOFTHEFOLLOWING#OST!UDITORSATANAGGREGATE
REMUNERATIONOF`,AKHSPLUSAPPLICABLETAXESANDOUTOFPOCKETEXPENSESTOCONDUCTTHEAUDITOFTHECOSTRECORDSOFTHEVARIOUS
UNITSOFTHE#OMPANYFORTHElNANCIALYEARENDING-ARCH

Sl. No. Name of the Cost Auditor Audit Fees (`)

 .ARASIMHA-URTHY#O(YDERABAD 
 +''OYAL!SSOCIATES.EW$ELHI 
 $'-!SSOCIATES+OLKATA 
 '2+ULKARNI!SSOCIATES-UMBAI 
 6IVEKANANDAN5NNI!SSOCIATES#HENNAI 
TOTAL 20,20,000/-

)NACCORDANCEWITHTHEPROVISIONSOF3ECTIONOFTHE#OMPANIES!CTREADWITHTHE#OMPANIES!UDITAND!UDITORS 2ULES

THEREMUNERATIONPAYABLETOTHE#OST!UDITORSHASTOBERATIlEDBYTHEMEMBERSOFTHE#OMPANY
!CCORDINGLYCONSENTOFTHEMEMBERSISSOUGHTBYPASSINGAN/RDINARY2ESOLUTIONFORRATIlCATIONOFTHEREMUNERATIONPAYABLETOTHE#OST
!UDITORSFORTHElNANCIALYEARENDING-ARCHASAPPROVEDBYTHE"OARD.ONEOFTHE$IRECTORS+EY-ANAGERIAL0ERSONNELOFTHE
#OMPANYISINTERESTEDORCONCERNEDINTHERESOLUTION
The Board, therefore, recommends the Ordinary Resolution for approval by members.
Item No. 7 - To provide Corporate Guarantees to banks on behalf of IndianOil-Adani Gas Pvt. Ltd., a Joint Venture Company,
for obtaining Performance Bank Guarantees in favour of Petroleum & Natural Gas Regulatory Board for City Gas
Distribution Projects in various Geographical Areas
)NDIAN/IL !DANI'AS0VT,TD)/!'0, WASINCORPORATEDINASA*OINT6ENTURE#OMPANY*6# WITH!DANI'AS,TD!', 
FORIMPLEMENTATIONOF#ITY'AS$ISTRIBUTION#'$ 0ROJECTSINVARIOUSCITIESIN)NDIA/VERTHEYEARS)/!'0,HASBEENPARTICIPATINGIN
VARIOUSROUNDSOFBIDDINGCONDUCTEDBY0ETROLEUM.ATURAL'AS2EGULATORY"OARD0.'2" ANDASONDATEITISOPERATINGIMPLEMENTING
#'$0ROJECTSIN'EOGRAPHICAL!REAS'!S )NLINEWITH0.'2"REGULATIONSAUTHORIZATIONTOTHESUCCESSFULENTITYISISSUEDBY0.'2"
ONLYAFTERTHEENTITYSUBMITS0ERFORMANCE"ANK'UARANTEE0"' FROMANYSCHEDULEDBANKFORAPRE DETERMINEDAMOUNTFORSPECIlC'!
#'$0ROJECTSARETYPICALLYLONGDURATIONPROJECTSWHEREINDEMANDBUILD UPISGRADUALANDREVENUEGENERATIONBECOMESAPPRECIABLEONLY
INTHELATERYEARS)/!'0,ISSTILLINPROCESSOFDEVELOPMENTOF#'$0ROJECTSINITSAUTHORIZED'!S#URRENTLYPROJECTSIN'!SHAVEBEEN
COMMISSIONED VIZ #HANDIGARH !LLAHABAD 0ANIPAT $AMAN 5DHAMSINGH .AGAR %RNAKULAM $HARWAD AND "ULANDSHAHR  AND 3OUTH
'OA'!WILLBECOMMISSIONEDSHORTLY$URING )/!'0,WONMORE'!SANDDEVELOPMENTOF#'$0ROJECTINTHESE'!SWOULD
REQUIRECAPITALEXPENDITUREOF`CROREAPPROX TOMEETTHECOMMITTEDBIDNUMBERS4HEFUNDINGREQUIREDFORCAPITALEXPENDITURE
HASTOBEMETFROM%QUITYCONTRIBUTION$EBTlNANCING
4HEREVENUEFROMTHECOMMISSIONED'!SISCURRENTLYINSUFlCIENTTOHANDLEHUGElNANCIALCOMMITMENTINTHEFORMOF#APEXTOACHIEVE
COMMITTED TARGETS )/!'0, WOULD CONTINUE TO PARTICIPATE IN BIDDING FOR #'$ 0ROJECTS IN THE FUTURE AND IN THE EVENT OF EMERGING
SUCCESSFULITMAYSEEK0ROMOTERSASSISTANCETOPROVIDEREQUIRED#ORPORATE'UARANTEES#'S INFAVOUROFBANKSFORISSUANCEOF0"'STO
0.'2"ONBEHALF)/!'0,
#ONSIDERINGANESTIMATEDAVERAGEVALUEOF`CROREFOR0"'PER'!)/!'0,MAYREQUIRE0ROMOTERSSUPPORTFORISSUANCEOF#'SWORTH
`CRORE)/!'0,BEINGA*6)NDIAN/ILSSHAREFOREXTENDINGSUCH#'SWOULDBE`CRORE
 60th Annual Report 2018-19 421

About the
Report
#ONSIDERINGTHEANTICIPATEDGROWTHINACTIVITIESOF)/!'0,ITISPROPOSEDTOAPPOINTONEOFTHEWHOLE TIME$IRECTOROF)NDIAN/ILASAPART
TIMENOMINEEDIRECTORONTHE"OARDOF)/!'0,
!SPERPROVISIONSOF3ECTIONOFTHE#OMPANIES!CTAND2ULESTHEREUNDERIFA$IRECTORON)NDIAN/IL"OARDISALSOA$IRECTOR

Chairman’s Desk
ON"OARDOF)/!'0,WHICHISA0RIVATE,IMITED#OMPANYTHEN)NDIAN/ILCANPROVIDELOANSORISSUE#'SINFAVOUROFBANKSONBEHALFOF
)/!'0,ONLYUPONAPPROVALBYTHE-EMBERSOF)NDIAN/ILTHROUGHA3PECIAL2ESOLUTIONPASSEDATA'ENERAL-EETING

From the
!CCORDINGLYASREQUIREDUNDERSECTIONOFTHE#OMPANIES!CTAPPROVALOF-EMBERSISSOUGHTTHROUGH3PECIAL2ESOLUTIONTO
PROVIDE#'SINFUTUREINFAVOUROFBANKSONBEHALFOF)/!'0,FORISSUANCEOF0"'SINFAVOROF0.'2"FOR#'$0ROJECTSINVARIOUS'!S
UPTOALIMITOF`CRORE
%XCEPTTHE$IRECTORWHOWOULDBEAPPOINTEDONTHE"OARDOF)/!'0,ASANOMINEE$IRECTORNONEOFTHEOTHER$IRECTORS+EY-ANAGERIAL

About IndianOil
0ERSONNELOFTHE#OMPANYANDTHEIRRELATIVESWOULDINANYWAYBEINTERESTEDORCONCERNEDINTHERESOLUTIONSETOUTATITEMNOOFTHE
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

Discussion & Analysis

Management’s
Responsibility Report
Business
Report on Corporate
Governance
Notice
Statements
Financial
AGM
4H
ISP
AG
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,
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 60th Annual Report 2018-19 423

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 INDIANOILIN7EBSITEWWWIOCLCOM

From the
ATTENDANCE SLIP
DP ID. * CLIENT ID * FOLIO NO. NO. OF SHARE(S)

About IndianOil

!PPLICABLEFORMEMBERSWHOAREHOLDINGSHARESINDEMATERIALIZEDFORM

)7EHEREBYRECORDMYOURPRESENCEATTHEth!NNUAL'ENERAL-EETINGOFTHE#OMPANYBEINGHELDON7EDNESDAY!UGUSTAT

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 INDIANOILIN7EBSITEWWWIOCLCOM

From the
PROXY FORM
;0URSUANTTOSECTION OFTHE#OMPANIES!CTANDRULE OFTHE#OMPANIES-ANAGEMENTAND!DMINISTRATION 2ULES
=

About IndianOil
.AMEOFTHEMEMBERS
Registered Address
Email id
&OLIO.O#LIENT)D

$0)$

Description of

!PPLICABLEFORMEMBERSWHOAREHOLDINGSHARESINDEMATERIALIZEDFORM

Capitals
)7EBEINGTHEMEMBERS OFxxxxxxxSHARESOFTHEABOVENAMEDCOMPANYHEREBYAPPOINT
 OFHAVINGEMAILIDORFAILINGHIM

Directors and others

 OFHAVINGEMAILIDORFAILINGHIM
 OFHAVINGEMAILID

Board of
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

Sl. No. RESOLUTIONS

ORDINARY BUSINESS

Directors’
Report
1 4ORECEIVECONSIDERANDADOPTTHEAUDITED3TANDALONEASWELLAS#ONSOLIDATED&INANCIAL3TATEMENTOFTHE#OMPANYFORTHE
lNANCIALYEARENDED-ARCHTOGETHERWITH2EPORTSOFTHE$IRECTORSANDTHE!UDITORSTHEREON
2 4ODECLARETHE&INAL$IVIDENDOF`PEREQUITYSHAREFORTHEYEAR ANDTOCONlRMTHE)NTERIM$IVIDENDOF`PER

Discussion & Analysis

EQUITYSHAREPAIDDURINGTHEYEAR 

Management’s
3 4OAPPOINTA$IRECTORINPLACEOF$R3362AMAKUMAR$). WHORETIRESBYROTATIONANDISELIGIBLEFORREAPPOINTMENT
4 4OAPPOINTA$IRECTORINPLACEOF3HRI2ANJAN+UMAR-OHAPATRA$). WHORETIRESBYROTATIONANDISELIGIBLEFOR
REAPPOINTMENT
SPECIAL BUSINESS
 4ORE APPOINT3HRI0ARINDU+"HAGAT$). ASAN)NDEPENDENT$IRECTORFORAPERIODOFONEYEAR(Special Resolution)

Responsibility Report
 4ORATIFYTHEREMUNERATIONOFTHE#OST!UDITORSFORTHElNANCIALYEARENDING-ARCH
 4OPROVIDE#ORPORATE'UARANTEESTOBANKSONBEHALFOF)NDIAN/IL !DANI'AS0VT,TDA*OINT6ENTURE#OMPANYFOROBTAINING

Business
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' !LI9AVAR
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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