Additional information in respect of Notes 2 to 6:
a) Freehold land includes J 4.63 crore (Previous year I 4.63 crore) which, not being in the Corporation's possession and being under dispute, has been provided for in books of accounts.
b) Buildings include Ownership Flats having gross block of J 48.09 crore (Previous year I 46.44 crore) in proposed/ existing co-operative societies and others.
c) The Corporation has elected to continue the policy adopted under Previous GAAP for accounting the foreign exchange differences arising on settlement or translation of long-term foreign currency monetary items outstanding as of 31st March 2016 i.e. foreign exchange differences arising on settlement or translation of long-term foreign currency monetary items relating to acquisition of depreciable assets are adjusted to the carrying cost of the assets and depreciated over the balance life of the asset. Accordingly, “Other adjustments” include capitalization of foreign exchange differences (net) of J 110.32 crore (Previous year I 57.75 crore).
d) Additions include capitalization of borrowing costs of J Nil crore (Previous year I 1.21 crore).
e) Freehold Land, Plant and Equipment, Tanks and Pipelines, Railway Sidings, Buildings etc. jointly owned in varying extent with other Oil Companies/Railways/Port Trust: Gross Block J 956.86 crore (Previous year I 951.27 crore), Cumulative Depreciation J 242.61 crore (Previous year I 203.28 crore), Net Block J 714.25 crore (Previous year I 747.99 crore). Further CWIP includes J 115.75 crore (Previous year I 47.50 crore) on account of projects being executed jointly.
f) CWIP balance of 2G Ethanol Bio-Refinery project at Bargarh are secured against charge of J 75 crore created in favor of Centre for High Technology (CHT), a society under the administrative control of MoPNG.
g) Compensation from third parties in respect of items of Property, Plant and Equipment/Capital work in progress that were impaired, lost or given up during the year included in Statement of Profit and Loss is J 1.70 crore (Previous year I 32.58 crore).
Pursuant to Ministry of Corporate Affairs (MCA) orders sanctioning the Scheme of Amalgamation of erstwhile subsidiaries BORL and BGRL, received by the Corporation on June 22, 2022 and August 8, 2022 respectively, assets of erstwhile subsidiaries have been vested and amalgamated in the books of the Corporation and accounted for during the previous year as per Ind AS 103 "Business Combination". The process of updating the name of the Corporation in respect of immovable properties of erstwhile subsidiaries BORL and BGRL is in progress.
For the purpose of this disclosure, other substantive evidences such as allotment letters, Court orders, noting in municipal/ revenue records, property tax receipts etc. conveying title to the Corporation over the property has been taken into consideration.
Pursuant to Ministry of Corporate Affairs (MCA) orders sanctioning the Scheme of Amalgamation of erstwhile subsidiaries BORL and BGRL, received by the Corporation on June 22, 2022 and August 8, 2022 respectively, assets of erstwhile subsidiaries have been vested and amalgamated in the books of the Corporation and accounted for during the previous year as per Ind AS 103 "Business Combination". The process of updating the name of the Corporation in respect of immovable properties of erstwhile subsidiaries BORL and BGRL is in progress.
For the purpose of this disclosure, other substantive evidences such as allotment letters, Court orders, noting in municipal/ revenue records, property tax receipts etc. conveying title to the Corporation over the property has been taken into consideration.
iii The Corporation has only one class of Shares namely Equity Shares having par value of H 10 per share. Each Holder of Equity Shares is entitled to one vote per Equity Share. In the event of liquidation of the Corporation, the holders of Equity Shares will be entitled to receive the remaining assets of the Corporation in proportion to the number of Equity Shares held.
The Corporation declares and pays dividend in Indian Rupees. The final dividend, if any, proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.
During the Financial year 2024-25, the Corporation has issued Bonus Shares in the ratio of 1:1 by capitalization of security premium. The total number of equity shares issued is 2,16,92,52,744 having face value of H 10 each.
Nature and purpose of reserves Capital reserve
It represents Capital Reserve appearing in the Financial Statements of erstwhile Kochi Refineries Limited (KRL) transferred on amalgamation and difference between the Investment made in Petronet CCK Limited (PCCKL) and the Share Capital received during the acquisition when the first time control was obtained.
Debenture Redemption Reserve
Debenture Redemption Reserve represents reserve created out of the profits of the Corporation available for distribution to Shareholders which is utilized for redemption of Debentures/Bonds.
General Reserve
General Reserve represents appropriation of Retained Earnings and are available for distribution to Shareholders. Securities Premium
The amount received in excess of the par value adjusted with additional cost of Equity Shares, if any, has been classified as Securities Premium. The same can be utilized for issuance of Bonus Shares, charging off Equity related expenses ,etc.
Reserve on Business Combination
Reserve on Business Combination represents re-measurement gain recognized in the consolidated financial statements on acquisition of Bharat Oman Refineries Limited , subsequently recorded in Standalone Financial Statements on its merger with the Corporation.
Retained Earnings
Retained Earnings (excluding accumulated balance of remeasurements of Defined Benefit Plans (Net of Tax) and remeasurement gain on acquisition of Bharat Oman Refineries Limited) represents surplus/accumulated earnings of the Corporation and are available for distribution to Shareholders.
Equity Instruments through Other Comprehensive Income
This reserve represents the cumulative effect of fair value fluctuations of investments made by the company in equity instruments of other entities. The cumulative gain or loss arising on such changes are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. This will not be re-classified to the statement of profit and loss in subsequent periods.
NOTE 44
BORL was incorporated in 1994 as a Joint Venture between the Corporation and OQ S.A.O.C. (formerly known as Oman Oil Company S.A.O.C.). BORL was mainly engaged in the business of refining crude oil to produce and supply various petroleum products.
The Corporation held 63.38% stake in BORL (i.e. 1,53,82,16,114 Equity Shares) as on April 1, 2021 and additionally acquired balance 36.62% of Equity Shares (i.e. 88,86,13,336 equity shares) in BORL vide a Share Purchase Agreement (SPA) with Joint Venture Partner OQ S.A.O.C. (formerly known as Oman Oil Company S.A.O.C.) ("OQ") on June 30, 2021, for a consideration of H 2,399.26 crore. By way of this transaction, BORL became wholly owned subsidiary of the Corporation.
Further, the Corporation acquired the remaining share warrants of BORL, held by Government of Madhya Pradesh, for a consideration of H 72.65 crore (including Stamp Duty).
As per the requirement of Ind AS 103, the Corporation, in the Consolidated Financial Statements for FY 2021-22, has recognised a gain on remeasurement of Investment held prior to above acquisition of H 1,720.13 crore as an Exceptional Item and Goodwill of H 1,203.98 crore on account of change in control.
Subsequently, the Board of Directors of the Corporation, at their meeting held on October 22, 2021 approved the Scheme of Amalgamation (BORL Scheme) for merger of BORL with the Corporation. Application seeking approval of the BORL Scheme was subsequently filed with Ministry of Corporate Affairs, New Delhi. The copy of order sanctioning the BORL Scheme was received by the Corporation on June 22, 2022 and upon filing the same with Registrar of Companies on July 1, 2022, BORL stands merged with the Corporation. The BORL Scheme has become effective from the appointed date of October 1, 2021.
The Corporation has recorded all the assets, liabilities and reserves of BORL vested in it pursuant to the merger scheme by applying the principles as set out in Appendix C of IND AS 103 'Business Combinations' and prescribed under Companies (Indian Accounting Standards) Rules, 2015 issued by the Institute of Chartered Accountants of India. Accordingly, the Standalone Financial Statements for FY 2021-22 of the Corporation have been restated, on account of BORL merger from the date of obtaining control i.e. June 30, 2021.
NOTE 45
As per the scheme of amalgamation of the erstwhile Kochi Refineries Limited (KRL) with the Corporation approved by the Government of India, 3,37,28,737 equity shares of the Corporation were allotted (in lieu of the shares held by the Corporation in the erstwhile KRL) to a Trust ("BPCL Trust for Investment in Shares") for the benefit of the Corporation in the Financial Year 2006-07. Pursuant to the Bonus Shares issuances by the Corporation, "BPCL Trust for Investment in Shares" held 20,23,72,422 equity shares of the Corporation as at April 1, 2020.
During FY 2020-21, Corporation had announced BPCL Employee Stock Purchase Scheme (ESPS) 2020 and created "BPCL ESPS Trust" for the purpose of acquiring shares for allotting to eligible employees. Accordingly, "BPCL ESPS Trust" had purchased 4,33,79,025 Equity shares from "BPCL Trust for Investment in Shares" in October 2020. The proportionate cost of "BPCL Trust for Investment in Shares" was recognized as cost of shares held by "BPCL ESPS Trust".
Further, during FY 2020-21, 12,60,33,090 Equity Shares were sold from "BPCL Trust for Investment in Shares" via Bulk Deal on Stock Exchange for Net Consideration of H 5,511.79 crore. Accordingly, Securities Premium of H 5,101.31 crore was recognized after adjusting the corresponding cost of H 410.48 crore (including Face Value of Equity Shares of H 126.03 crore) under Total Equity.
During FY 2021-22, Corporation allotted 3,65,42,077 shares to eligible employees on exercise of options by employees under BPCL Employee Stock Purchase Scheme (ESPS) 2020. Accordingly, Securities Premium of H 1,204.88 crore was recognized after adjusting the corresponding cost of H 119.01 crore (including Face Value of Equity Shares of H 36.54 crore) under Total Equity.
During FY 2023-24, 68,36,948 Equity Shares were sold from "BPCL ESPS Trust" via block Deal on Stock Exchange for Net Consideration of H 378.60 crore (Net of Tax). Accordingly, Securities Premium of H 356.33 crore was recognized after adjusting the corresponding cost of H 22.27 crore (including Face Value of Equity Shares of H 6.84 crore) under Total Equity.
Consequent to the above, "BPCL ESPS Trust" and "BPCL Trust for Investment in Shares" held NIL and 3,29,60,307 equity shares of the Corporation respectively as at March 31, 2024.
The cost of the original investment together with the additional contribution to the corpus of above trusts have been reduced from "Paid-up Share Capital" to the extent of face value of the shares and from "Other Equity" under separate reserves for the balance amount. The income received from "BPCL Trust for Investment in Shares" and the impact on consolidation of "BPCL ESPS Trust" has been recognized directly under "Other Equity".
NOTE 46
The Corporation has numerous transactions with other oil companies. The outstanding balances (included under Trade Payables/Trade Receivables, etc.) to/ from them and certain other outstanding credit and debit balances are subject to confirmation/ reconciliation. Adjustments, if any, arising therefrom are not likely to be material on settlement and are accounted as and when ascertained.
NOTE 48 SERVICE CONCESSION ARRANGEMENTS
The Corporation has entered into service concession arrangements with entities supplying electricity ("The Regulator") to construct, own, operate and maintain a wind energy based electric power generating station ("Plant").
Under the terms of agreement , the Corporation will operate and maintain the Plant and sell electricity generated to the Regulator for a period which covers the substantial useful life of the Plant which may be renewed for such further period as may be mutually agreed upon between the parties. The Corporation will be responsible for any maintenance services during the concession period.
The Corporation in turn has the right to charge the Regulator agreed rate as stated in the service concession arrangement.
The fair value towards the construction of the Plant has been recognized as an Intangible Asset and is amortized over the useful life of the asset or period of contract whichever is less.
NOTE 49: DISCLOSURES AS PER IND AS 116 LEASES
The Corporation enters into lease arrangements for land, godowns, office premises, staff quarters, third party operating plants, tank lorries, time charter vessels and others. Pursuant to Ministry of Corporate Affairs Notification dated March 30, 2019, Ind AS 116 "Leases" applicable w.e.f. April 1, 2019 is adopted by the Corporation using modified retrospective method wherein, at the date of initial application, the lease liability is measured at the present value of remaining lease payments and Right-of-Use asset has been recognized at an amount equal to lease liability adjusted by an amount of any prepaid expenses. Under Ind AS 116 "Leases", at commencement of lease, the Corporation recognizes Right-of-use asset and corresponding Lease Liability. Right of use asset is depreciated over lease term on systematic basis and Interest on lease liability is charged to Statement of Profit and Loss as Finance cost.
NOTE 50 EMPLOYEE BENEFITS[A] Post Employment Benefit Plans:1. Defined Contribution Scheme
Defined Contribution Scheme (DCS) was introduced effective January 1, 2007 and a defined percentage of the salary of eligible employees out of their total entitlements on account of superannuation benefits is contributed by the Corporation towards the same. A portion of upto 10% of the salary of the eligible employees is currently being contributed to GOI managed PFRDA (Pension Fund Regulatory and Development Authority) National Pension Scheme (NPS) and the balance is being contributed to separate Trusts managed by the Corporation. During the year, the Corporation has recognized H 29.03 crore (H 30.78 crore in FY 23-24) in the Statement of Profit & Loss.
2. Defined Benefit Plans
The Corporation has the following Defined Benefit Plans:-
Gratuity:
The Corporation has a Defined Benefit Gratuity plan managed by a Trust. Trustees administer the contributions made to the Trust, investments thereof etc. Based on actuarial valuation, the contribution is paid to the trust which is invested in plan assets as per the investment pattern prescribed by the Government. Gratuity is paid to a staff member who has put in a minimum qualifying period of 5 years of continuous service, on superannuation, resignation, termination or to his nominee on death.
Other Defined Benefits include:
(a) Post Retirement Medical Scheme (managed by a Trust) for eligible employees, their spouse, dependent children and dependent parents;
(b) Pension/Ex-Gratia scheme to the retired employees who are entitled to receive the monthly pension/ex-gratia for life;
(c) Death in service/Permanent Disablement benefit given to the spouse of the employee/employee, provided the deceased's family/disabled employee deposits with the Corporation, retirement dues such as Provident Fund, Gratuity, Leave Encashment etc., payable to them;
(d) Resettlement allowance paid to employees to permanently settle down at the time of retirement;
(e) Felicitation benefits to retired employees on reaching the age related milestones; and
(f) The Corporation's contribution to the Provident Fund is remitted to a separate trust (which is administered by the trustees), established for this purpose based on a fixed percentage of the eligible employees' salary and charged to Statement of Profit and Loss. The Corporation has an obligation to fund any shortfall on the yield of the trust's investments over the interest rates declared by the Government under EPF scheme. Shortfall, if any, in the fund's revenues based on the EPFO specified rate of return, will need to be made good by the Corporation and is charged to Statement of Profit and Loss. The actual return earned by the fund has been higher than the EPFO specified minimum rate of return in most of the earlier years. During FY 2024-25, there was full/partial settlement of certain defaulted securities (against which provisions were created in earlier periods). Accordingly, the provision against such certain defaulted securities as on March 31, 2025 is H 85.97 crore (H 94.17 crore as on March 31, 2024). Against the provision, the advance given by the Corporation to the Trust stands at H 80.37 crore as on March 31, 2025 (H 88.73 crore as on March 31, 2024). The Fund balance is sufficient to meet the fund obligations as on March 31, 2025 and March 31, 2024.
These defined benefit plans expose the Corporation to actuarial risks, such as longevity risk, interest rate risk, and market (investment) risk.
NOTE 54 EARNINGS PER SHARE (EPS)
Basic EPS is derived by way of dividing the profit or loss for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year, whereas Diluted EPS factors the effects of all dilutive potential ordinary shares.
NOTE 55 ENERGY SAVING CERTIFICATES (ESCERTS)
As at March 31, 2025, the Corporation holds 2,06,937 Nos. (Previous year 2,06,937 Nos.) of ESCerts awarded by Bureau of Energy Efficiency (BEE) in FY 2021-22 as part of “Performance, Achieve & Trade” (PAT) scheme, India for achieving reduction in Specific Energy Consumption above targets set by them for the performance during FY 2018-19. These can be redeemed to meet refineries' own shortfall (if any) or can be used as tradable certificates which can be sold through power exchanges. According to the Indian Energy Exchange's market fluctuations, current values of ESCerts are volatile. Considering unascertainability of cost of ESCerts since such cost cannot be derived directly, the same has not been carried in inventory.
NOTE 56 IMPAIRMENT OF ASSETS
The Corporation assesses at each reporting date, whether there is an indication for impairment of assets. The Corporation takes into consideration external and internal sources of information available about the asset to check whether any indication for impairment exists. If any such indication exists, the Corporation estimates the recoverable amount of the asset. The recoverable amount is the higher of an asset's fair value less cost of disposal and value in use. The value in use is assessed based on the estimated future cash flows which are discounted to their present value using the discount rate that reflects the time value of money and risk specific to the assets for which the future cash flows estimates have not been adjusted. An impairment loss is recognized in the Statement of Profit and Loss to the extent asset's carrying amount exceeds its recoverable amount.
Based on the assessment, there is no indication of impairment of assets except for the Corporation's investment in subsidiary company Bharat Petro Resources Limited (BPRL). The gross carrying value of investment in BPRL as of March 31, 2025 is H 13,176.37 crore (Previous year H 10,926.37 crore). BPRL is an upstream company and is having investments in Oil and Gas Blocks globally and in India, either directly or through its Subsidiaries (including step down Subsidiaries), Joint ventures and Associates. During the current financial year, BPRL has impaired investments in its subsidiary company due to change in prospects of its blocks. Accordingly, impairment testing was carried out on equity investment made by the Corporation in BPRL and an impairment loss of H 1,773.93 crore (Previous year H 1,798.02 crore) has been recognized based on the value in use of assets as on March 31, 2025. Such impairment loss is shown as an exceptional item in Statement of Profit and Loss for the year ended March 31, 2025. The accumulated impairment loss on investments in BPRL as of March 31, 2025 is H 6,964.70 crore (Previous year H 5,190.77 crore).
Reason for shortfall
The shortfall of H 336.26 crore from the stipulated and prescribed spend is on account of delay in certain projects due to limitations faced by implementing agencies which were beyond their control. However, the shortfall has been earmarked against the specific projects and would be spent as per the provisions of the Companies Act, 2013.
Nature of CSR Activity undertaken by the company
The projects which are in alignment with the areas specified under Schedule VII of the Companies Act, 2013 are undertaken by the Corporation. Further, in order to have quantitative and qualitative impact, Corporation has adopted five core thrust areas viz. Health & Sanitation, Education, Skill Development, Environmental Sustainability, and Community Development.
C. Financial risk management Risk management framework
The Corporation's Board of Directors has overall responsibility for the establishment and for overseeing of the Corporation's risk management framework. The Risk Management Committee of the Board has defined roles and responsibilities, which includes reviewing and recommending the risk management plan and the risk management report for approval of the Board with the recommendation of the Audit Committee. The Corporation has adopted a Risk Management Charter and Policy for self-regulatory processes and procedures for ensuring the conduct of the business in a risk conscious manner.
The Corporation has exposure to the following risks arising from financial instruments:
i. Credit risk;
ii. Liquidity risk; and
iii. Market risk
C.i. Credit risk
Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Corporation's trade and other receivables, cash and cash equivalents and other bank balances, derivatives and debt securities. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to whom the Corporation grants credit terms in the normal course of business.
As at March 31, 2025 and March 31, 2024, the Corporation's retail dealers, industrial and aviation customers accounted for the majority of the trade receivables.
Expected credit loss assessment for Trade and other receivables from customers as at March 31, 2025 and March 31, 2024
The Corporation uses an allowance matrix to measure the expected credit losses of trade and other receivables.
The loss rates are computed using a 'Roll Rate' method based on the probability of receivable progressing through successive stages of delinquency to write off. Roll rates are calculated separately for exposures in different segments based on the following common credit risk characteristics - type of product purchases, type of customers.
(b) PMUY and Other Loans
As per the Government of India's scheme - Pradhan Mantri Ujjwala Yojana (PMUY), the Corporation has given interest free loans to PMUY customers towards cost of hot plate and 1st refill, which is to be recovered from the subsidy amount payable to customer when such customers book refill. During the year, the Corporation has recalculated gross carrying amount of the loans at period end at the present value of the estimated future contractual cash flows discounted at the original effective interest rate due to revision in estimates of receipts based on projections of subsidy amount per refill. Accordingly, the gross carrying amount of the loans has been increased by H 12.91 crore (Previous year: decrease by H 6.90 crore) with a corresponding recognition of expense in the Statement of Profit and Loss.
The Corporation assesses the credit risks/significant increases in credit risk on an ongoing basis throughout each reporting period. For determining the expected credit loss on such loans, the Corporation considers the time elapsed since the last refill for determining probability of default on collective basis. Accordingly, the expected credit loss of H 231.48 crore (Previous year: H 218.62 crore) has been recognized on carrying amount of H 476.44 crore (Previous year: H 513.47 crore) of PMUY Loans. (Refer Note 9 and 18)
(c) Cash and Cash equivalents and Other Bank Balances
The Corporation held cash and cash equivalents and other bank balances of H 9,382.88 crore at March 31, 2025 (Previous year: H 4,490.64 crore). The cash and cash equivalents are held with bank/financial institution counterparties have good credit ratings/ good market standing. Also, Corporation invests its short term surplus funds in bank fixed deposits, Tri Party Repo etc., which carry lesser mark to market risks for short duration.
(d) Derivatives
The derivatives are entered into with banks, financial institutions and other counterparties with good credit ratings. Further exposures to counter-parties are closely monitored and kept within the approved limits.
(e) Investment in Debt Instruments
Investment in debt instruments mainly include loans to subsidiary, joint venture companies, investment in government securities and debt schemes of mutual fund which do not carry any significant credit risk.
C.ii. Liquidity risk
Liquidity risk is the risk that the Corporation will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Corporation through effective fund management. The Corporation has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Corporation has access to funds from debt markets through Commercial Paper programs, Foreign Currency Borrowings and other debt instruments.
C.iii.a Currency risk
The Corporation is exposed to currency risk on account of its operating and financing activities. The functional currency of the Corporation is Indian Rupee. Our exposure is mainly denominated in US Dollars ($). The $ exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future.
The Corporation has put in place a Financial Risk Management Policy to identify the most effective and efficient ways of managing the currency risks. The Corporation uses derivative instruments, (mainly foreign exchange forward contracts) to mitigate the risk of changes in foreign currency exchange rates in line with the policy.
The Corporation does not use derivative financial instruments for trading or speculative purposes.
The above also includes guarantee amount of H 295.05 crore (equivalent $ 34.48 million) [ Previous Year H 287.44 crore (equivalent $ 34.48 million)] towards BPRL Venture Mozambique BV's pro rata share of drawdown of $ 28.73 million (as on March 31, 2025) [$ 28.73 million (as on March 31, 2024)] under the project finance arrangement entered into for 2-train 12.88 MMTPA LNG Project in Mozambique Offshore Area 1, Rovuma basin. This project is being partly funded through project finance under which an amount of $ 15.4 billion has already been finalised. BPCL has provided a Debt Service Undertaking (DSU) to guarantee its pro rata share (i.e. towards BPRL Venture Mozambique BV's Participating Interest (PI) of 10% in the project) of project finance obligations to any project finance beneficiaries under project financing arrangement, capped at a maximum of $ 1.92 billion (out of which the draw down was $ 28.73 million as at March 31, 2025) (Draw down was $ 28.73 million as at March 31, 2024).
These guarantee amounts will be payable on default by the concerned entity. As of the reporting date, none of the subsidiaries have defaulted and hence, the Corporation does not have any present obligation to third parties in relation to such guarantees. The bifurcation of contractual cash flows in different years is based on expiry of said guarantees.
C.iii. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises four types of risk: currency risk, interest rate risk, commodity risk and other price risk.
Sensitivity analysis
A reasonably possible strengthening/ (weakening) of the USD against INR at March 31, would have affected the measurement of financial instruments denominated in US dollars and affected profit or loss (before tax) by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to Property, Plant and Equipment or recognised directly in reserves, the impact indicated below may affect the Corporation's income statement over the remaining life of the related Property, Plant and Equipment or the remaining tenure of the borrowing respectively.
C.iii.b Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial instruments because of fluctuations in the interest rates, in cases where the instruments are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing instruments will fluctuate because of fluctuations in the interest rates.
The Corporation's approach to managing interest rate risk is to have a judicious mix of borrowed funds with fixed and floating interest rate obligation.
and an increase in 25 basis points in interest rates is likely to decrease the profit or loss (before tax) for the year ending March 31, 2025 by H 16.08 crore (Previous year: H 9.68 crore).
Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 25 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. In cases where the related interest rate risk is capitalised to Property, Plant and Equipment, the impact indicated below may affect the Corporation's income statement over the remaining life of the related Property, Plant and Equipment.
C.iii.c Commodity rate risk
Corporation's profitability gets affected by the price differential (also known as Margin or Crack spread) between prices of products (output) and the price of the crude oil and other feed-stocks used in production (input). Prices of both are set by markets. Hence Corporation uses derivatives instruments (swaps, futures, options and forwards) to hedge exposures to commodity price risk to cover refinery operating cost using Basic Swaps on various products' cracks like Naphtha, Gasoline (Petrol), Jet/Kerosene, Gasoil (Diesel) and Fuel Oil against Benchmark Dubai Crude. Further volatility in freight costs is hedged through Freight Forwards and bunker purchases. Settlement of all derivative transactions take place on the basis of monthly average of the daily prices of the settlement month quoted by Platts.
Corporation measures market risk exposure arising from its trading positions using value-at-risk (VaR) techniques. These techniques make a statistical assessment of the market risk arising from possible future changes in market prices over a one-day holding period.
Fair value sensitivity analysis for fixed-rate instruments
The Corporation accounts for certain investments in fixed-rate financial assets such as investments in Oil bonds and Government Securities at fair value through profit or loss. Accordingly, a decrease in 25 basis points in interest rates is likely to increase the profit or loss (before tax) for the year ending March 31, 2025 by H 16.19 crore (Previous year: H 10.08 crore)
A. The Corporation has Triparty Repo Settlement System limits from Clearing Corporation of India Limited, the borrowing against which was H 2,387.76 crore as at March 31, 2025 (Previous Year H 299.83 crore). These limits are secured by 7.59% Government Stock 2026 of face value aggregating to H 2,697.00 crore (Previous Year H 370.00 crore). [Refer Note no. 14]
B. The Corporation has Clearcorp Repo Order Matching Systems (CROMs) limits from Clearing Corporation of India Limited, the borrowing against which was H 869.99 crore as at March 31, 2025 (Previous Year H 1,699.96 crore). These limits are secured by Oil Marketing Companies GOI Special Bonds of face value aggregating to H 879.00 crore (Previous Year 3,882.37 crore). [Refer Note no. 14]
C. The Corporation purchases and sells petroleum products from different Oil and Gas Companies. Under the terms of the agreement, the amounts payable by the Corporation are offset against receivables and only the net amounts are settled. The relevant amounts have therefore been presented net in the balance sheet.
NOTE 60 CAPITAL MANAGEMENT
The Corporation's objective is to maximize the shareholders' value by maintaining an optimum capital structure. Management monitors the return on capital as well as the debt equity ratio and makes necessary adjustments in the capital structure for the development of the business.
The Corporation's debt to equity ratio as at March 31, 2025 was 0.29 (Previous year: 0.25).
Note: For the purpose of computing debt to equity ratio, Equity includes Equity Share Capital and Other Equity, and Debt includes Current and Non Current Borrowings.
NOTE 61 SEGMENT REPORTING
As per the requirements of Ind AS 108 on “Operating Segments”, segment information has been provided under the Notes to Consolidated Financial Statements.
1. Corporation's subsidiary, Bharat PetroResources Limited (BPRL), is engaged in the business of Exploration and Production (E&P) of oil & gas and has participating interest in several blocks held directly or through group companies. Corporation has issued performance guarantees/ counter-indemnities/ letter of undertakings in favor of Government/ Government Agencies/ Operators/ other partners towards performance obligations of BPRL (including its group companies) under the Concession Agreement/Joint Operating Agreements/ Production Sharing Contracts/ Licenses/ Farmout Agreements relating to various such E&P oil & gas blocks acquired by them. The outflow that may arise under these performance guarantees/ counter-indemnities/ letter of undertakings is not quantifiable.
2. The Corporation has issued Performance Guarantee for necessary infrastructure of terminal and pipelines at Kochi and obligations of Associate Company Petronet LNG Ltd. under the LNG SPA, the outflow that may arise under the same is not quantifiable.
# Calls received for issue of shares during the year from Joint Venture Company for which subscription of shares is pending.
(B) Utilization of Borrowed Funds and share premium
During FY 2024-25, other than the transactions undertaken in the normal course of business and in accordance with extant
regulatory guidelines and internal policies, as applicable,
1. Corporation has not granted any advance/loans or investments or provided guarantee or security or the like to any other person(s) or entities with an understanding, whether recorded in writing or otherwise, to further lend/invest/provide guarantee or security or the like to any other person on behalf of the Corporation.
2. Corporation has not received any funds from any person(s) or entity with an understanding, whether recorded in writing or otherwise, that the company shall further lend or invest or provide guarantee or security or like in any other person on behalf of an identified by such person(s)/entity.
(C) Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction to be registered with ROC beyond the statutory period.
As per MCA website, a charge of H 246.80 crore is appearing unsatisfied vide charge ID 90165239. As per information
available with the company, the charge was satisfied vide document number 424 on April 20, 2000 by Registrar of Companies,
Mumbai. Hence the same has not been disclosed in Schedule III.
NOTE 68
Figures of the previous year have been regrouped wherever necessary, to conform to current period presentation and disclosed separately wherever material.
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