A. i) Freehold Land includes H1.61 crore (2022: H1.61 crore) lying vacant due to title disputes/litigation.

ii) Out of the Freehold land measuring 1364.01 acres at Mathura and Agra regions, land measuring 50 acres (approx) has been acquired by NHAI as a part of the NH2 widening project for which the determination of value of compensation is pending. Accordingly, the value of land amounting to H1.18 crore is continued to be included in Freehold land.

iii) Freehold Land of 490 acres at Guwahati Refinery includes land parcel of approx. 32.39 acres (Costing H0.05 crore) on which public roads, drains etc. have been constructed by PWD, Govt. of Assam.

iv) Freehold Land includes H41.75 crore of compensation paid in respect of land at Panipat Refinery as per District and High court orders of earlier dates, which was later quashed by subsequent High Court order dated 18.12.2019. Since, the process of recovery of compensation already paid, has been stayed by Hon'ble Supreme Court vide order dated 21.09.2020, necessary adjustment shall be made in the cost of the land upon actual recovery, if any.

B. i) Buildings include H0.01 crore (2022: H0.01 crore) towards 1605 (2022: 1605) nos. of shares in Co-operative Housing Societies

towards membership of such societies for purchase of flats.

ii) Includes Roads, Bridges etc. (i.e. Assets other than Building) of Gross block amounting to H607796 crore (2022: H5122.57 crore) and net block amounting to H3302.68 crore (2022: H2834.91 crore).

C. Depreciation and amortisation for the year includes H68.39 crore (2022: H19.09 crore) relating to construction period expenses shown in 'Note - 2.2'

D. Land and Buildings (Including ROU Asset) include H899.37 crore (2022: H742.19 crore) in respect of which Title/ Lease Deeds are pending for execution or renewal.

E. During the year, company has provided an impairment loss in the Statement of Profit and Loss under the Head 'Depreciation, Amortisation and Impairment on Tangible Assets' on windmills in Rajasthan of H18.94 crore (2022: H82.55 crore) considering uncertainty over availment of eligible Renewable Energy Certificates (REC) and retaining tariff of H 3.14/Kwh as per RRECL order dated 05.03.2019.

F. Hitherto, the estimated residual value of LPG cylinders (other than composite cylinders) and Pressure Regulators was considered as 15% of original cost. Based on realization of scrap value in recent past, the estimated residual value of those assets has been increased from 15% to 25% of original cost effective from April 01, 2022. The impact on account of above change is reduction in depreciation charge by H293.08 crore in FY 2022-23 which will be offset over future periods in the Statement of Profit & Loss.

G. During the year, classification of Retail Visual Identity (RVI) elements has been reviewed and some of the items having gross block of H1,213.06 crore classified under Buildings, Plant & Equipment and Office Equipments have been reclassified as 'Furniture and Fixtures' The impact on account of this change is increase in depreciation charge by H 61.31 crore during FY 2022-23 which will be offset over future periods in the Statement of Profit & Loss.

H. Railways had claimed transfer of ownership of certain assets provided by the Company at Railway premises which was not accepted in prior years by the Company and the said assets were continued to be part of Plant, Property & Equipment of the Company. Railways, in its latest tender has asserted its position on ownership of these assets and has again maintained status quo in their earlier stand/position during FY 2022-23. Management has accepted Railways' contention in view of the continued business relation. Consequently, assets amounting to H81.26 crore (WDV as on 01.04.2022) has been derecognized and charged to loss on sale/disposal of assets during the year.

I. For further details regarding ROU Assets, refer 'Note - 36'

J. In accordance with the requirements prescribed under Schedule II to Companies Act, 2013, the Company has adopted useful lives as prescribed in that schedule except in some cases as per point no. 2.4.1 of significant accounting policies (Note-1).

3 Out of Oil Marketing Companies 8.20% GOI Special Bonds 2024 classified as Current Investment, bonds of Investment value H 1500 crore (Carrying value H 1560.51 crore) has been used as collateral against availment of overnight borrowings through CROMS platform of CCIL.

4 During the current financial year, IOC Sweden AB had undertaken reduction of share capital by reducing the face value of its shares to offset its accumulated losses in accordance with the applicable laws and regulations and the same has been accounted through impairment. Consequent to capital reduction, the face value of its shares has been reduced from Euro 11.19 to Euro 2.28 per share.

A. The Company has surplus land at various locations such as LPG Plant , Depots and ROs etc. which is under the process of disposal. The management intends to sell the land. No impairment was recognised on reclassification of land as held for sale as the Company expects that the fair value (estimated based on the recent market prices of similar properties in similar locations) less costs to sell is higher than the carrying amount.

B. Includes non-current assets retired from active use earlier used in various segments and held for disposal through tendering process within a year.

C. Cauvery Basin Refinery and Petrochemicals Limited (CBRPL) has been incorporated on 6th January 2023 as a Joint Venture of Indian Oil and Chennai Petroleum Corporation Limited each holding 25% equity and balance by seed equity investors, for construction of new 9 MMTPA refinery at Cauvery Basin Nagapattinam. The JV would be operational upon receipt of approval by Cabinet Committee on Economic Affairs (CCEA) for equity investment in the CBR project by CPCL. The transfer of assets of the Company's terminal will be taken up thereafter. Accordingly, the land and other facilities held by the Company at Narimanam Marketing Terminal which are to be transferred to the new Joint Venture, are classified under Disposal Group.

D. During the year the company has disposed of the investment in 101095 Equity shares of Woodlands Multispeciality Hospital Limited which was classified in the previous year as asset held for sale.

During the year the company has reclassified Assets Held for sale amounting to H 0.04 crore (2022: H 72.99 crore) as Property, Plant and Equipment/ Other Assets based on the plan for disposal of assets.

During the year, the company has recognized impairment loss of H 10.28 crore (2022: H 1788 crore) on write-down of asset to fair value less costs to sell and the same has been shown in Provision/loss on Other Assets sold or written off under 'Other Expenses' in the Statement of Profit and Loss.

B. Terms/ Rights attached to Equity Shares

The Company has only one class of equity shares having par value of H 10 each and is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.

IOC Shares Trust (Shareholder) has waived its right to receive the dividend w.e.f. 02.03.2020.

A. Adjusted for bonus shares pertaining to those held under IOC Shares Trust Nature and Purpose of Reserves

A. Retained Earnings

The retained earnings comprises of general reserve and surplus which is used from time to time to transfer profits by appropriations. Retained earnings is free reserve of the Company and is used for the purposes like issuing bonus shares, buy back of shares and other purposes (like declaring Dividend etc.) as per the approval of Board of Directors. It includes the re-measurement of defined benefit plan as per actuarial valuations which will not be reclassified to statement of profit and loss in subsequent periods.

B. Bond Redemption Reserve

As per the Companies Act 2013, a Bond Redemption Reserve is required to be created for all bonds/ debentures issued by the company at a specified percentage. This reserve is created out of appropriation of profits and is transferred back to general reserve on repayment of bonds for which it is created. In 2019, this requirement was dispensed with in case of public issue/ private placement of debentures by listed companies to NBFCs, Housing Finance Companies and other listed companies.

C. Capital Redemption Reserve

As per the Companies Act 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. Utilization of this reserve is governed by the provisions of the Companies Act 2013 and accordingly has been used in current financial year for issuing bonus shares.

D. Capital Reserve

Capital Reserve was created through business combinations and shall be utilised as per the provisions of the Companies Act 2013.

E. Insurance Reserve

Insurance Reserve is created by the company with the approval of Board of Directors to mitigate risk of loss of assets not insured with external insurance agencies. H20.00 crore is appropriated by the company every year to this reserve. The reserve is utilised to mitigate actual losses by way of net appropriation in case any uninsured loss is incurred. No amount (2022: H0.72 crore) has been utilised for recoupment of uninsured losses.

F. Fair value of Equity Instruments

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 reclassified to the statement of profit and loss in subsequent periods.

G. Fair value of Debt Instruments

This reserve represents the cumulative effect of fair value fluctuations in debt investments made by the company to earn contractual cash flows and which are available for sale. The cumulative gain or loss arising on such changes are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. This amount will be reclassified to the statement of profit and loss in subsequent periods on disposal of respective instruments.

H. Cash Flow Hedge Reserve

The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on such changes are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. Such gains or losses will be reclassified to statement of profit and loss in the period in which the hedged item occurs/ affects the statement of profit and loss.

1. 349677684 (233118456 before issue of bonus shares) shares held under IOC Shares Trust (Shareholder) of face value H 349.68 crore (H 233.12 crore before issue of bonus shares) (2022: H 233.12 crore) have been netted off from paid up capital. IOC Shares Trust have waived its right to receive the Dividend w.e.f. March 02, 2020 and therefore Dividend on shares held by IOC Shares Trust was neither proposed in the last year nor during the current financial year.

2. The Company has also incurred expenses on distribution of final dividend amounting to H 0.19 crore (2022: H 0.24 crore) and on distribution of interim Dividend amounting to Nil (2022: H 0.48 crore) which have been debited to equity.

3. The Board of Directors recommended issue of bonus equity shares in the ratio of one equity share of H10 each for every two equity shares of H10 each held and it was approved by the members of the Company in AGM. Pursuant to this the company has issued bonus equity shares in July 2022.

NOTE-32: EARNINGS PER SHARE (EPS)

Basic and Diluted EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders by the weighted

average number of Equity Shares outstanding during the year.

1. 349677684 (233118456 before issue of bonus shares) Equity Shares held under IOC Shares Trust of face value H 349.68 crore (H 233.12 crore before issue of bonus shares) have been excluded from weighted average number of Equity Shares and EPS is computed accordingly.

2. Pursuant to the approval of the shareholders, the company has issued bonus shares in the ratio of one equity share of H10 for every two equity shares of H10 each held in July 2022. Accordingly, earnings per share (EPS) (basic and diluted) of FY 2021-22 have been adjusted on account of bonus shares.

Frequency

The Proved and Proved & Developed reserves mentioned above are the provisional numbers based on the estimate provided by the operator. For the purpose of estimation of Proved and Proved & Developed reserves, Deterministic method has been used by the operator. The annual revision of Reserve Estimates is based on the yearly exploratory and development activities and results thereof.

NOTE - 35: EMPLOYEE BENEFITS

Disclosures in compliance with Ind-AS 19 on "Employee Benefits" is as under:

A. Defined Contribution Plans- General Description Employee Pension Scheme (EPS-95)

During the year, the company has recognised H2783 crore (2022: H30.27 crore) as contribution to EPS-95 in the Statement of Profit and Loss/CWIP (included in Contribution to Provident and Other Funds in Note - 27/Construction period expenses in Note-2.2). Pension Scheme

During the year, the company has recognised H438.03 crore (2022: H514.19 crore) towards Defined Contributory Employees Pension Scheme (including contribution in corporate National Pension System) in the Statement of Profit and Loss/ CWIP (included in Contribution to Provident and Other Funds in Note - 27/ Construction period expenses in Note-2.2).

B. Defined Benefit Plans- General Description Provident Fund:

The Company's contribution to the Provident Fund are remitted to the three separate provident fund trusts established for this purpose based on a fixed percentage of the eligible employee's salary and charged to the Statement of Profit and Loss. Shortfall of net income of trust below Government specified minimum rate of return, if any, and loss to the trust due to its investments turning stressed are being made good by the Company.

In line with the EAC opinion dated 12.05.2022, provision towards distress investment amounting to H413.35 crore has been reversed during the year (2022: additional provision of H350.10 crore) by the company. Additionally, H128.28 crore has been provided as loss due to Remeasurement of Defined Benefit Plans under Other Comprehensive Income as per Actuarial Report.

Gratuity:

Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount based on completed tenure of service subject to maximum of H0.20 crore at the time of separation from the company. Besides, the ceiling of gratuity increases by 25% whenever IDA rises by 50% with reference to January 01, 2017

Post Retirement Medical Benefit Facility (PRMBF):

PRMBF provides medical coverage to retired employees and their eligible dependant family members.

Resettlement Benefit:

Resettlement benefit is allowed to employees to facilitate them to settle down upon retirement.

Ex gratia Scheme:

Ex-gratia is payable to those employees who have retired before January 01, 2007 and either not drawing pension from superannuation benefit fund (as they superannuated prior to January 01, 1987, i.e. introduction of superannuation benefit fund scheme in IndianOil) or are drawing a pension lower than the ex gratia fixed for a Grade (in such case differential amount between pension and ex gratia is paid).

Employees Compensation for injuries arising out of or during the course of employment:

Employees covered under the Employees' Compensation Act, 1923 who meet with accidents, while on duty, are eligible for compensation under the said Act. Besides, a lumpsum monetary compensation equivalent to 100 months' Pay (BP DA) is paid in the event of an employee suffering death or permanent total disablement due to an accident arising out of and in the course of his employment.

Felicitation of Retired Employees:

The company has a scheme to felicitate retired employees on attaining different age milestones with a token lumpsum amount.

C. Other Long-Term Employee Benefits - General Description Leave Encashment:

Each employee is entitled to get 8 earned leaves for each completed quarter of service. Encashment of earned leaves is allowed during service leaving a minimum balance of 15 days subject to maximum accumulation of 300 days. In addition, each employee is entitled to get 5 sick leaves (in lieu of 10 Half Pay Leave) at the end of every six months. The entire accumulation of sick leave is permitted for encashment only at the time of retirement. DPE had clarified earlier that sick leave cannot be encashed, though Earned Leave (EL) and Half Pay Leave (HPL) could be considered for encashment on retirement subject to the overall limit of 300 days. Ministry of Petroleum and Natural Gas (MoPNG) has advised the company to comply with the said DPE Guidelines. However, in compliance to the DPE guidelines of 1987 which had allowed framing of own leave rules within broad parameters laid down by the Government and keeping in view operational complications and service agreements the company had requested concerned authorities to reconsider the matter. Subsequently, based on the recommendation of the 3rd Pay Revision Committee, DPE in its guidelines on pay revision, effective from January 01, 2017 has inter-alia allowed CPSEs to frame their own leave rules considering operational necessities and subject to conditions set therein. The requisite conditions are fully met by the company.

Long Service Award:

On completion of specified period of service with the company and also at the time of retirement, employees are rewarded with amounts based on the length of service completed. It is a mode of recognizing long years of loyalty and faithful service in line with Bureau of Public Enterprises (currently DPE) advice vide its DO No. 7(3)/79-BPE (GM.I) dated February 14, 1983. On receipt of communication from MoPNG advising us that the issue of Long Service Award has been made into an audit para in the Annual Report of CAG of 2019, the Corporation has been clarifying its position to MoPNG individually as well as on industry basis as to how Long Service Awards are not in the nature of Bonus or Ex-gratia or honorarium and is emanating from a settlement with the unions under the Industrial Dispute Act as well as with the approval of the Board in line with the DPE's advice of 1983. The matter is being pursued with MoPNG for resolution. Pending this the provision is in line with Board approved policy.

Leave Fare Allowance (LFA) / Leave Travel Concession (LTC):

LTC is allowed once in a period of two calendar years (viz. two yearly block). An employee has, in any given block period of two years, an option of availing LTC or encashing the entilements of LFA.

NOTE-36: COMMITMENTS AND CONTINGENCIES

A. Leases (a) As Lessee

The Company has entered into various material lease arrangements (including in substance lease arrangements) such as lands and buildings for the purpose of its plants, facilities, offices, retail outlet etc., storage tankages facility for storing petroleum products, time charter arrangements for transportation of crude and petroleum products, transportation agreement for dedicated tank trucks for road transportation of petroleum products, handling arrangement with CFA for providing dedicated storage facility and handling lubes, supply of utilities like Hydrogen, Oxygen, Nitrogen and Water,way leave licences and port facilities among others.

There are no significant sale and lease back transactions and lease agreements entered by the Company do not contain any material restrictions or covenants imposed by the lessor upto the current reporting period.

Details of significant leases entered by the Company (including in substance leases) are as under:

1. BOOT Agreement in respect of Tankages facility at Paradip for a period of 15 years. Lessor will transfer ownership to IOCL after 15 years at Nil value.

2. BOOT Agreement in respect of Water Intake facility at Paradip for a period of 25 years. Lessor will transfer ownership to IOCL after 25 years at H 0.01 crore.

3. Leasehold lands from government for the purpose of plants, facilities and offices for the period 30 to 90 years.

4. Agreements with vessel owners for hiring of dedicated time charter vessels for transportation of Company's crude and petroleum products, these are classified as Transport Equipments.

5. BOO Agreement for supply of oxygen and nitrogen at Panipat Refinery. The land is owned by IOCL and the plant is being operated by contractor for supply of oxygen and nitrogen to IOCL.

6. BOO Agreement for leasing of Nitrogen & Hydrogen Plant at Paradip for 15 years .

7 BOOT Agreement for leasing of Quality Control Lab at Paradip for 10 years. Lessor will transfer the Assets after 10 years at H 0.01 crore.

8. BOO Agreement for supply of Oxygen and Nitrogen Gas to IOCL Ethylene Glycol project at Paradip Refinery for a period of 20 years.

9. Arrangements with Adani Ports and Special Economic Zone Limited related to port facilities at Mundra for a period of 25 years and 11 months.

10. Arrangements with Adani Ports and Special Economic Zone Limited related to land for a period of 8 years and 2 months for setting up tank farm at Mundra Port, Gujarat for storing crude oil.

11. Arrangement for lease of land for operating Retail Outlets for sale of Petroleum products, setting up terminals/Bottling plant/ Lube Blending plant for storing petroleum products/bottling LPG/Manufacturing Lubes respectively.

12. CFA handling arrangement with CFAs for providing dedicated storage facility for handling lubes.

13. Arrangements with Tank truck operators for providing dedicated tank trucks for transportation of company's petroleum products.

14. Arrangement for dedicated storage tanks for storing Company's petroleum products at various locations.

As per requirement of the standard, maturity analysis of Lease Liabilities have been shown separately from the maturity analysis of

other financial liabilities under Liquidity Risk-Note 40: Financial Instruments & Risk Factors.

Details of items of future cash outflows which the Company is exposed as lessee but are not reflected in the measurement

of lease liabilities are as under:

(i) Variable Lease Payments

Variable lease payments that depend on an index or a rate are to be included in the measurement of lease liability although not paid at the commencement date. As per general industry practice, the Company incurs various variable lease payments which are not based any index or rate (variable based on kms covered or % of sales etc.) and are recognized in profit or loss and not included in the measurement of lease liability. Details of some of the arrangements entered by the Company which contain variable lease payments are as under:

1. Transportation arrangement based on number of kms covered for dedicated tank trucks with different operators for road transportation of petroleum, petrochemical and gas products.

2. Leases of Land of Retail Outlets based on Sales volume.

3. Rent for storage tanks for petroleum products on per day basis.

4. Payment of VTS software and VSAT equipment based on performance of equipment.

5. Payment of SD WAN equipment & software based on performance of equipment.

(ii) Extension and Termination Options

The Company lease arrangements includes extension options only to provide operational flexibility. Company assesses at every lease commencement whether it is reasonably certain to exercise the extension options and further reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control. However, where Company has the sole discretion to extend the contract such lease term is included for the purpose of calculation of lease liabilities.

The Company has the sole discretion to terminate the lease in case of lease agreement for Retail Outlets. However, Company is reasonably certain not to exercise the option in view of significant improvement and prominent importance of Retail to the entity's operations. Accordingly, such lease term without any effect of termination is considered for the purpose of calculation of lease liabilities.

(iii) Residual Value Guarantees

The Company have entered into various BOOT agreements wherein at the end of lease term the leased assets will be transferred to the company at Nominal value which has no significant impact on measurement of lease liabilities.

(iv) Committed leases which are yet to commence

1. The Company has entered into lease agreement on BOO basis for supply of Hydrogen and Nitrogen gas to Barauni Refinery for a period of 20 years. IOCL has sub leased the land for the construction of the plant. Lease will commence once plant is commissioned.

2. The Company has paid Advance Upfront Premium of H 72.56 crore to CIDCO for land for 3 Retail outlets at Mumbai for the period of 60 years. The agreement is yet to be executed and therefore the amount is lying as Capital Advance and shall form part of ROU Assets once lease is commenced.

3. The Company has paid Advance Upfront Premium of H 13.42 crore to MSRDC for land for 6 Retail outlets at Aurangabad and Nagpur for the period of 30 years. Out of this the agreement is yet to be executed for 1 RO with upfront premium of H 4.33 crore and therefore the amount is lying as Capital Advance and shall form part of ROU Assets once lease is commenced.

4. The Company has entered into lease agreement for sourcing e-locks from various vendors for a period of 3 years (with an option to extend at the option of IOCL) at rate ranging from H 1200-1400/month and for 1 vendor H 2450/month. As at March 31, 2023, 3022 no's are yet to be supplied. However, the same are low value items.

5. The Company has entered into lease agreement with Andhra Pradesh State Civil Supplies for land for 1 Retail Outlet at Vizag for a period of 20 years at an monthly rental of H 20000/- with an increment of 10% in every 3 years. The possession of land is not given and the matter is pending in the court.

6. The Company has entered into centralised lease agreement with M/s Trimble for rent payment of H373/month for VTS software for POL trucks customised to IOCL requirement for a period of 5 years. As at March 31, 2023 total 3354 Nos are yet to be installed. However, payment is in the nature of variable lease payment.

7 The Company has entered into lease agreement with various vendors for VTS software of LPG trucks for a period of 5 years

at a rental ranging from H 108-256/month. As at March 31, 2023 a total of 1976 nos. of VTS are yet to be installed. However,

payment is in the nature of variable lease payment.

8. The Company has entered into lease agreement with M/s Fox Solutions Pvt Ltd for IoT software & equipments for Swagat

RO's for a period of 3 years at a rental of H4950/month. As at March 31, 2023 a total of 109 nos. of equipments are yet to be installed. However, the same are low value items.

9. The Company has entered into lease agreement with M/s Seven Islands Shipping Ltd for hiring time chartered vessels for the period of 2 years to be commenced from the month of Apr'2023.

10. The Company has entered into lease agreement for Supply, Installation and Maintenance of Dual Network Connectivity Solution (SD-WAN Solutions) with Managed Services on rental basis for ROs for a period of 5 years on OPEX Model with monthly rental of H2113/-. Out of selected RO's, commissioning is pending in 5204 RO's. However, payment is in the nature of variable lease payment.

11. The Company has entered into lease agreement with NHAI for lease agreements of 12 sites to set up retail outlets in Delhi/ Haryana Region for a period of 15 years with monthly rentals of H1.43 crore for each RO out of which 8 sites are pending for hand over, hence not capitalized as ROU assets & shown as committed leases. The Company has entered into lease agreement with NHAI for lease agreements of 4 sites to set up retail outlets in Rajasthan Region for a period of 15 years with monthly rentals of H 0.68 crore for each RO out of which 2 sites are pending for hand over, hence not capitalized as ROU assets & shown as committed leases.

B.1.3 H1286.26 crore (2022: H1839.50 crore) being the demands raised by the VAT/Sales Tax Authorities including interest of H534.91 crore (2022: H786.26 crore).

B.1.4 H2266.47 crore (2022: H2266.47 crore) in respect of Income Tax demands including interest of H113.34 crore (2022: H113.34 crore).

B.1.5 H5005.96 crore (2022: H3893.39 crore) including H4068.31 crore (2022: H3306.36 crore) on account of Projects for which suits have been filed in the Courts or cases are lying with Arbitrator. This includes interest of H212.93 crore (2022: H86.59 crore).

B.1.6 H365.24 crore (2022: H378.41 crore) in respect of other claims including interest of H2774 crore (2022: H41.44 crore).

The Company has not considered those disputed demands/claims as contingent liabilities, for which, the outflow of resources has been considered as remote. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position. Contingent liabilities in respect of joint operations are disclosed in Note 33B.

B.2 Guarantees excluding Financial Guarantees

B.2.1 The Company has entered into Master Guarantee Agreement, on behalf of its subsidiaries viz. Indoil Global B.V. and Indoil Montney Ltd. for all of its payments and performance obligations under the various Project Agreements entered by the subsidiaries with PETRONAS Carigali Canada B.V and Progress Energy Canada Ltd. (now renamed as Petronas Energy Canada Ltd.). The total amount sanctioned by the Board of Directors is CAD 3924.76 million. The estimated amount of such obligation (net of amount paid) as on 31st March 2023 is H4,150.21 crore - CAD 683.56 million (2022: H 4,336.93 crore - CAD 716.83 million). The sanctioned amount was reduced by CAD 1,462.00 million due to winding down of LNG Plant during 2017

*B.2.2 The Company has issued Corporate Guarantee in favour of three beneficiaries i.e., Bolivarian Republic of Venezuela (Republic), The Corporation Venezolana del Petroleo S.A. and PeTroCarabobo S.A., on behalf of Indoil Netherlands B.V, Netherlands (an associate Company) to fulfil the associate Company's future obligations of payment of signature bonus / equity contribution / loan to the beneficiaries. The total amount sanctioned by the Board of Directors is USD 424 million. The estimated amount of such obligation (net of amount paid) as on 31st March 2023 is H 3010.33 crore - USD 366.33 million (2022: H 2776.77 crore - USD 366.34 million).

*B.2.3 The Company has issued Corporate Guarantee, on behalf of IndianOil Adani Gas Private Limited (IOAGPL), to the extent of obligations of later company under Performance Bank Guarantee facility provided to IOAGPL by State Bank of India, Canara Bank, Bank of Baroda, Indian Bank, IndusInd Bank, Jammu and Kashmir Bank, Axis Bank and ICICI Bank. The Company's share of such obligation is estimated at H 3,533.46 crore (2022: H 3533.46 crore).

*B.2.4 The Company has issued Parent Company Guarantee in favour of Abu Dhabi National Oil Company, on behalf of Urja Bharat Pte. Ltd., Singapore (a joint venture company of Company's subsidiary i.e. IOCL Singapore Pte Ltd) to fulfill the joint venture Company's future obligations of payment and performance of Minimum Work Programme. The total amount sanctioned by the Board of Directors is USD 89.7 Million. The estimated amount of such obligation (net of amount paid) is H239.95 crore - USD 29.20 million (2022: H 395.66 crore - USD 52.20 million).

* The Company has sought an opinion from Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India on treatment of these as Financial Guarantee. On receipt of the EAC opinion, appropriate effect will be given in the books of account, if required.

B. 3 Other money for which the Company is Contingently Liable

B.3.1 Pending decision of the Government, no liability could be determined and provided for in respect of additional compensation, if any, payable to the land owners and the Government for certain lands acquired.

B. 3.2 As on 31.03.2023 company has contingent liability of H 479.08 crore (2022: H 236.85 crore) towards custom duty for capital

goods imported under Manufacturing & Other operation in Warehouse Regulation (MOOWR) scheme against which company has executed and utilised bond amounting to H 143724 crore (2022: H 710.54 crore) which represents three times of the custom duty. The firm liability towards such custom duty shall be contingent upon conditions (Rate of custom duty/decision of company to export, etc) at the time of filing of ex-bond bill of entry at the time of disposal. In case the Company decides to export such capital goods, the associated costs shall not be significant.

C. Commitments

C. 1 Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account and thus not provided for is H 74493.28 crore (2022: H 53030.96 crore) inclusive of taxes.

* Petronet India Limited is a JV amongst Indian Oil, BPCL, HPCL, RIL, NEL, IL&FS, SBI and ICICI. The company is under winding up and the matter is pending with Official Liquidator since 2018.

@ Petronet CI Ltd. is a JV amongst Indian Oil, PIL, RIL, NEL and BPCL. The company is under winding up and the matter is pending with Official Liquidator since 2006.

# IndianOil has exited the Joint Venture, IndianOil Ruchi Biofuels LLP (M/s IORB) by giving notice of its exit from the LLP to the other JV partner viz. Ruchi Soya Industries Limited (M/s Ruchi) as well as to the LLP on December 26, 2018 stating that it will exit the LLP w.e.f. January 25, 2019. The time frame for completing exit formalities by M/s Ruchi by filing requisite forms with ROC was within 30 days of notice expiry period (i.e., by February 24, 2019) but the same is still pending and IndianOil's name is appearing on ROC website as Partner in the said LLP, It has been informed that M/s Ruchi was under Corporate Insolvency Resolution Process and has been taken over by Patanjali Ayurveda Limited, , and for the purpose of carrying out the process of liquidation, M/s. Sanatan has been inducted as the new partner in place of Indian Oil. All necessary documents have been provided to M/s Ruchi for completing formalities relating to exit of IndianOil from IORB LLP,

$ The Board of IndianOil at its meeting held on 23.11.2022 has accorded in-principle approval for disinvestment of Hindustan Urvarak & Rasayan Limited.

^AA The Board of IndianOil at its meeting held on 14.03.2023 has accorded in-principle approval for closure of Ujjwala Plus Foundation.

@@ Cauvery Basin Refinery and Petrochemicals Limited (CBRPL) has been incorporated on 6th January 2023 as a Joint Venture of Indian Oil and Chennai Petroleum Corporation Limited each holding 25% equity and balance by seed equity investors, for construction of new 9 MMTPA refinery at Cauvery Basin Nagapattinam. IndianOil has made equity contribution of 25% stake in Cauvery Basin Refinery and Petrochemicals Limited during the month of March 2023.

1, The management has assessed that fair values of Trade Receivables, Trade Payables, Cash and Cash Equivalents, Bank Balances & Bank Deposits, Loans (incl. Security Deposits) other than mentioned above, Short Term Borrowings (incl. Current Maturities of Long Term Borrowings), Floating Rate Borrowings, Lease Liabilities, Other Non-Derivative Current/Non-Current Financial Assets & Other Non-Derivative Current/Non-Current Financial Liabilities approximate their carrying amounts.

2. During the year, the management has re-assessed viability of the project being carried out by Suntera Nigeria 205 Limited. Due to uncertainty involved in carrying out operations and non-utilisation of available reserves of Block - OML 142, the management has assessed the fair value of investment and loan advanced to Suntera Nigeria 205 Limited as NIL.

Methods and Assumptions

The following methods and assumptions were used to estimate the fair values at the reporting date:

A. Level 1 Hierarchy:

(i) Quoted Equity Shares: Closing quoted price (unadjusted) in National Stock Exchange of India Limited

(ii) Quoted Government Securities: Closing published price (unadjusted) in Clearing Corporation of India Limited

(iii) Foreign Currency Bonds - US Dollars: Closing price (unadjusted) for the specific bond collected from active market

B. Level 2 Hierarchy:

(i) Derivative Instruments at FVTPL: Replacement cost quoted by institutions for similar instruments by employing use of market observable inputs.

(ii) Hedging Derivatives at FVTOCI: Replacement cost quoted by institutions for similar instruments by employing use of market observable inputs.

(iii) Loans to employees: Discounting future cash flows using rates currently available for items on similar terms, credit risk and remaining maturities, adjusted for insignificant unobservable inputs specific to such loan like principal and interest repayments are such that employee get more flexibility in repayment as per the respective loan schemes.

(iv) Non-Convertible Debentures, Loan from Odisha Government and USD 100 Mn Term Loan: Discounting future cash flows using rates currently available for items on similar terms, credit risk and remaining maturities (Excluding floating rate borrowings).

C. Level 3 Hierarchy:

(i) Unquoted Equity Instruments: Fair values of the unquoted equity shares have been estimated using Market Approach of valuation techniques with the help of external valuer. Valuation as per this technique is determined by comparing the company's accounting ratios with another company's of the same nature and size which are considered to be significant to valuation, such as earnings, cash flow, book value, or sales of various business of the same nature. The probabilities of the various estimates within the range can be reasonably assessed and are used in management's estimate of fair value for these unquoted equity investments.

(ii) Non Convertible Redeemable Preference Shares, Compulsorily Convertible Debentures (CCDs): Fair value of Preference shares, CCDs is estimated with the help of external valuer by discounting future cash flows. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

1. Loan to Employees

As per the terms of service, the Company has given long term loan to its employees at concessional interest rate. Transaction price is not fair value because loans are not extended at market rates applicable to employees. Since implied benefit is on the basis of the services rendered by the employee, it is deferred and recognized as employee benefit expense over the loan period.

2. PMUY loan

The PMUY loan is the interest free loan given to PMUY beneficiaries towards cost of burner and 1st refill. The loan is interest free and therefore transaction price is not at fair value. The difference between fair value and transaction price is accumulated in Deferred expenses and amortized over the loan period on straight line basis in the Statement of Profit and Loss.

Financial Liabilities

1. Security Deposits

In case certain deposits payable to deceased employees under one of the superannuation benefit scheme (R2 option) and security deposits received in relation to some revenue expenses contracts, transaction price is not considered as fair value because deposits are interest free. The difference between fair value and transaction price is accumulated in Deferred income and amortized over the tenure of security deposit on straight line basis in the Statement of Profit and Loss.

NOTE - 40: FINANCIAL INSTRUMENTS AND RISK FACTORS

Financial Risk Factors

The Company's principal financial liabilities, other than derivatives, comprise Borrowings, trade and other payables, security deposits, employee liabilities and lease obligation. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans & advances, trade and other receivables, short-term deposits and cash/cash equivalents that derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to a number of different financial risks arising from natural business exposures as well as its use of financial instruments including market risk relating to interest rate, commodity prices, foreign currency exchange rates and equity price, credit risk and liquidity risk.

The Risk Management Commitee comprised of senior management oversees the management of these risks. The Company's senior management is supported by a Risk Management Compliance Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management Committee provides assurance to the Board that the Company's risks are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company's policies, risk objectives and risk appetite.

The Company's requirement of crude oil are managed through integrated function handled through its international trade and optimization department, All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision, As per the Company's policy, derivatives contracts are taken only to hedge the various risks that the Company is exposed to and not for speculation purpose,

The Board of Directors oversee the risk management activities for managing each of these risks, which are summarised below:

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices, The major components of market risk are interest rate risk, foreign currency risk, commodity price risk and other price risk viz, equity shares etc, Financial instruments affected by market risk include Borrowings, Deposits, FVTOCI investments and derivative financial instruments,

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022,

The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations, provisions, and other non-financial assets and liabilities of foreign operations,

1. Interest Rate Risk

The Company is exposed to interest rate risk from the possibility that changes in interest rates will affect future cash flows of a financial instrument, principally financial debt, The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates,

The Company manages to maintain a mix between fixed and floating rates for rupee and foreign currency loans, based on liquidity, availability of cost effective instruments and considering the market/regulatory constraints etc, The Company also use interest rate swap contracts for managing the interest rate risk of floating interest rate debt, As at March 31, 2023 approximately 38% of the Company's borrowings are at a fixed rate of interest (March 31, 2022: 55%),

As the publication of USD LIBOR benchmark will be phased out by the end of June 2023, the Company has adopted various strategies like pre-payment and refinancing of existing instruments during the past couple of years for smooth transitioning from USD LIBOR benchmark, For pending loan instruments, the Company has already commenced discussion with the existing lenders for transition to alternate reference rate, viz,, SOFR, However, the Company is not expecting any material financial impact of transition from USD LIBOR to SOFR on its floating rate loans linked to USD LIBOR and associated derivative contracts which are maturing beyond 30th June 2023,

2. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates, The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency) and Borrowings,

The Company manages its foreign currency risk through combination of natural hedge, mandatory hedging and hedging undertaken on occurence of pre-determined triggers, The hedging is mostly undertaken through forward contracts,

The Company has outstanding forward contract of H 2,473,89 crore as at March 31, 2023 (March 31, 2022: H 3,610,54 crore) which has been undertaken to hedge its exposure to borrowings and other financial liabilities,

The sensitivity to a reasonably possible change in USD/INR exchange rates, with all other variables held constant, the impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives, The Company's exposure to foreign currency changes for all other currencies other than below is not material,

The effects of most exchange rate fluctuations 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-financial assets like inventory etc, For this reason, the total effect of exchange rate fluctuations is not identifiable separately in the Company's reported results,

3. Commodity Price Risk

The Company is exposed to various commodity price related risk such as Refinery Margins i,e, Differential between the prices of petroleum products & crude oil, Crude Oil Price fluctuation on accounts of inventory valuation fluctuation and crude oil imports, etc, As per approved risk management policy, the Company can undertake refinery margin hedging, inventory hedging and crude oil price hedging through swaps, options and futures in the OTC market as well as domestic exchanges to mitigate the risk within the approved limits,

(ii) Hedging activities

The primary risks managed using derivative instruments are commodity price risk, foreign currency risk and interest rate risk. Commodity Price Risk

IndianOil buys crude and sells petroleum products linked to international benchmark prices and these benchmark prices do not move in tandem. This exposes IndianOil to the risk of variation in refining margins which is managed by margin hedging.

The risk of fall in refining margins of petroleum products in highly probable forecast sale transactions is hedged by undertaking crack spread forward contracts. The Company wants to protect the realization of margins and therefore to mitigate this risk, the Company is taking these forward contracts to hedge the margin on highly probable forecast sale in future. Risk management activities are undertaken in OTC market i.e. these are the bilateral contracts with registered counterparties.

All these hedges are accounted for as cash flow hedges.

Foreign Currency Risk

The Company is exposed to various foreign currency risks as explained in A.2 above. As per Company's Foreign Currency & Interest Rate Risk Management Policy, the Company is required to fully hedge the short term foreign currency loans (other than revolving lines and PCFC loans) and at least 50% of the long term foreign currency loans based on market conditions.

Apart from mandatory hedging of loans, the Company also undertakes foreign currency forward contracts for the management of currency purchase for repayment of crude/product liabilities based on market conditions and requirements. The above hedgings are undertaken through delivery based forward contracts.

All these hedges are accounted for as cash flow hedges.

Interest Rate Risk

The Company is exposed to interest rate risks on floating rate borrowings as explained in A.1 above. Company hedges interest rate risk by taking interest rate swaps as per Company's Interest Rate Risk Management Policy based on market conditions. The Company uses interest rate derivatives to hedge exposure to interest payments for floating rate borrowings denominated in foreign currencies.

All these hedges are accounted for as cash flow hedges.

Hedge Effectiveness

There is an economic relationship between the hedged items and the hedging instruments as the terms of the foreign exchange and commodity forward contracts match the terms of hedge items. The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange, interest rate and commodity forward contracts are identical to the hedged risk components. To test the hedge effectiveness, the Company compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks. In case of interest rate swaps, as the critical terms of the interest rate swap contracts and their corresponding hedged items are similar, the Company performs a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the corresponding hedged items will systematically change in opposite direction in response to movements in the underlying interest rates.

Source of Hedge ineffectiveness

In case of commodity price risk, the Company has identified the following sources of ineffectiveness, which are not expected to be material:

• Differences in the timing of the cash flows of the hedged items and the hedging instruments

• Different indexes linked to the hedged risk of the hedged items and hedging instruments

• The counterparties' credit risk differently impacting the fair value movements of the hedging instruments and hedged items

• Changes to the forecasted amount of cash flows of hedged items and hedging instruments"

In case of foreign currency risk and interest rate risk, the main source of hedge ineffectiveness is the effect of the counterparty and the Company's own credit risk on the fair value of hedge contracts, which is not reflected in the fair value of the hedged items. The effect of this is not expected to be material.

B. Credit risk

Trade Receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by Letters of Credit, Bank Guarantees or other forms of credit insurance, wherever required.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company applies Simplified approach for providing the expected credit losses on Trade Receivables as per the accounting policy of the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Other Financial instruments and cash deposits

The Company's maximum exposure to credit risk for the components of the Balance Sheet at March 31, 2023 and March 31, 2022 is the carrying amounts as provided in Note 4, 5, 6, 11 & 12. The Company applies General approach for providing the expected credit losses on these items as per the accounting policy of the Company

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are approved by the Company's Board of Directors. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.

The Company has given loans to PMUY (Pradhan Mantri Ujjwala Yojana) customers which are shown under Loans in Note-5. PMUY loans are given to provide clean cooking fuel to BPL families as per GOI scheme wherein free LPG connections are issued by Oil Marketing Companies (OMCs) to the women belonging to the Below Poverty Line (BPL) households. As per the scheme, OMCs are providing an option for interest free loan towards cost of burner and 1st refill to PMUY consumers which is to be recovered from the subsidy amount payable to customer when such customers book refill.

In case of certain PMUY loans, the Company has determined that there is significant increase in the credit risk. The Company considers the probability of default upon initial recognition of the loan and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers past experience and time elapsed since the last refill for determining probability of default on collective basis. The Company has categorized the PMUY loans wherein credit risk has increased significantly under various categories considering the likelihood of default based on time gap since last refill. ECL is provided @ 80% (2022: @ 80%) in case of time gap since last refill is more than 12 months but not exceeding 18 months, @ 90% (2022: @ 90%) in case of time gap is more than 18 months but not exceeding 24 months and @ 100% (2022: @100%) for those consumers who have not taken any refill more than 24 months. ECL is provided for the loans where the refill is taken within last 12 months based on experience ratio of more than 12 months as above. The PMUY loans are classified as credit impaired as on reporting date considering significant financial difficulty in case the customer has not taken any refill from past 24 months (2022: 24 months).

In case of other financial assets, there are certain credit impaired cases mainly due to breach of contract arising due to default or bankruptcy proceedings.

D. Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

E. Collateral

As Company has been rated investment grade by various domestic and international rating agencies, there has been no requirement of submitting any collateral for booking of derivative contracts. Company undertakes derivatives contract only with those counterparties that have credit rating above the internally approved threshold rating. Accordingly, Company does not seek any collaterals from its counterparties.

NOTE-41: CAPITAL MANAGEMENT

The primary objective of the company's capital management is to maximise the shareholder value. Capital includes issued equity capital, share premium and all other equity reserves, attributable to the equity shareholders, for the purpose of the Company's capital management.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and requirements. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares to maintain or adjust the capital structure. The Company monitors capital using debt equity ratio, which is borrowings divided by Equity. The Company's endeavour is to keep the debt equity ratio around 1:1.

NOTE-46: DISCLOSURE ON GOVERNMENT GRANTS

A. Revenue Grants

1 Subsidies on sales of SKO (PDS) and LPG (Domestic)

Subsidies on sales of SKO (PDS) in India amounting to H 19784 crore (2022: H 154,21 crore) and subsidies on sales of LPG (Domestic) to customers in Bhutan amounting to H 6,73 crore (2022: H 6,44 crore) have been reckoned as per the schemes notified by Governments,

2 Export of Notified Goods under MEIS Claims/RoDTEP scheme

The Company has recognised H 0,03 crore (2022: H 3,64 crore) on export of notified goods under Merchandise Exports from India Scheme (MEIS)/Remission of Duties and Taxes on Exported Products (RoDTEP) scheme in the Statement of Profit and Loss as Revenue Grant,

3 Stipend to apprentices under NATS/NAPS scheme

As per Ministry of HRD & Skill development and Enterpreneurship, a portion of stipend and basic training cost for apprentices will be reimbursed to employer by Government under National Apprenticeship Training Scheme (NATS) and National Apprenticeship Promotion Scheme (NAPS), subject to prescribed threshold limit, The Company has recognised grant in respect of stipend paid to apprentices & Basic training cost under NATS & NAPS amounting to H 8,85 crore (2022: H 5,24 crore) as Revenue Grant,

4 Grant in respect of revenue expenditure for research projects

During the year, the Company has received revenue grant of H 2,05 crore (2022: H 1,62 crore) in respect of meeting out revenue expenditure such as Manpower, Consumables, Travel & Contingency etc for research projects undertaken with various agencies,

5 Incentive on sale of power

Company is getting incentive from Department of Renewable Energy, GOI for wind power generation of Electricity at the rate of H 0,50 paise for per unit of power generated, The Company has received grant of H 2,19 crore during the current year (2022: H 2,37 crore),

6 Excise duty benefit in North East

Excise duty exemption of 50% of goods manufactured and cleared from north east refineries has been reckoned at full value in revenue and on net basis in expenses under 'Excise Duty' (to the extent of duty paid), Financial impact for the current year is H 3886,45 crore (2022: H 5426,43 crore),

7 Viability Gap Funding (VGF)

The Company has received grant in the form of interest free loans from Orissa Government for a period of 15 years, The unamortized grant amount as at March 31, 2023 is H 2654,75 crore (2022: H 2372,48 crore), During the year, the Company has recognised H 208,56 crore (2022: H 176,05 crore) in the Statement of Profit and Loss as amortisation of grants,

8 Grant for under-recoveries in Domestic LPG

The company has received one-time grant of H10,801 crore (2022: NIL) from Government of India for under-recoveries incurred on sale of Domestic LPG during FY 2021-22 and FY 2022-23 which is recognised as Revenue from Operations in the statement of Profit & Loss (Refer Note 23),

B. Capital Grants

1 OIDB Government Grant for strengthening distribution of SKO (PDS)

The Company has received government grant from OIDB (Oil Industry Development Board) for strengthening distribution of PDS Kerosene as per the directions of MoP&NG to be used in construction of 20KL underground Tank, Mechanical Dispensing Units and Barrel Shed, The unamortized capital grant amount as at March 31, 2023 is H 0,46 crore (2022: H 0,59 crore), During the year, the Company has recognised H 0,13 crore (2022: H 0,17 crore) in Statement of Profit and Loss as amortisation of capital grants,

2 Capital Grant in respect of Excise duty, Custom duty and GST waiver

The Company has received grant in respect of Custom duty waiver on import on capital goods, Excise duty waiver and GST waiver on purchase of goods from local manufacturer in India under the certificate issued by Department of Scientific and Industrial Research (DSIR), The unamortized capital grant amount as at March 31, 2023 is H 61,63 crore (2022: H 75,59 crore) The goods so imported or procured from local manufacturer shall not be transferred or sold for a period of five years from date of installation, During the year, the Company has recognised H 12,82 crore (2022: H 11,70 crore) in the Statement of Profit and Loss as amortisation of capital grants, However, the scheme of GST concession on purchase of goods from local manufacturer under certificate issued by DSIR has been discontinued from 18,072022 and accordingly no new grant has been recognised thereafter in this regard,

3 Capital Grant in respect of Research projects

The Company has received capital grant from various agencies in respect of procurement/setting up of Capital assets for research projects undertaken, The unamortized capital grant amount as at March 31, 2023 is H 745 crore (2022: H 9,01 crore), During the year, the Company has recognised H 2,14 crore (2022: H 2,70 crore) in the Statement of Profit and Loss as amortisation of capital grants,

4 Capital Grant in respect of Entry Tax Exemption from Odisha Govt.

Entry Tax exemption received from Odisha Government for Paradip Refinery Project has been recognized as Capital Grant and grossed up with the concerned Assets, The unamortized capital grant amount as at March 31, 2023 is H 94,88 crore (2022: H 100,22 crore), During the year, the Company has recognised H 5,34 crore (2022: H 5,34 crore) in the Statement of Profit and Loss as amortisation of capital grants,

5 Capital Grant in respect of demonstration unit

Grant received from OIDB/CHT/USTDA for setting up units for Ethanol production from Refinery off gases/Ligncoellulosic Biomass at Panipat Refinery, The unamortized capital grant amount as at March 31, 2023 is H 311,92 crore (2022: H 312,46 crore), During the year, the Company has recognised H 0,54 crore (2022: Nil) in the Statement of Profit and Loss as amortisation of capital grants,

6 Capital Grant in respect of construction of units using Indigenous Technology

Grant received from OIDB for setting up of demonstration unit at Guwahati refinery with the company's R&D developed INDAdeptG technology, The unamortized capital grant amount as at March 31, 2023 is H 61,30 crore (2022: H 65,51 crore), During the year, the Company has recognised H4,21 crore (2022: H4,38 crore) in the Statement of Profit and Loss as amortisation of capital grants,

7 Capital Grant in respect of interest subsidy

The Company has received capital grant in respect of interest subsidy on loans taken from OIDB, The unamortized capital grant amount as at March 31, 2023 is H 10,81 crore (2022: H 11,33 crore), During the year, the Company has recognised H 0,52 crore (2022: H 0,36 crore) in the Statement of Profit and Loss as amortisation of capital grants,

8 Capital Grant in respect of Solar Power Generation

The Company has received capital financial assistance from Ministry of New and Renewable Energy in respect of procurement and installation of Solar Panels for Power Generation, The unamortized capital grant amount as at March 31, 2023 is H 3,59 crore (2022: H 3,78 crore), During the year, the Company has recognised H 0,19 crore (2022: H 0,19 crore) in the Statement of Profit and Loss as amortisation of capital grants,

9 Capital Grant from Nepal Government

The Company has received grant from Nepal Government by way of waiver of Local taxes on goods/services procured locally in Nepal and Import Duty for goods/services imported into Nepal, The Company has recognised H 1,14 crore (2022: H 1,12 crore) in Statement of Profit & Loss, The unamortized balance is H 10,55 crore (2022: H 11,69 crore)

10 Capital Grant for establishing EV Charging Station (EVCS) at Retail Outlets

The Company has received grant from Ministry of Heavy Industries for establishing EV Charging stations (EVCS) at ROs under Faster Adoption and Manufacturing of Electric Vehicles (FAME) India Scheme Phase-II in March 2023. Out of total sanctioned amount of H 364.00 crore, H 254.80 crore is received in advance and balance amount will be received on commissioning of all EVCS and limited to actual cost incurred. Since the work has not started as on 31.03.2023, no amount is recognised in the statement of Profit and loss during the year. The unamortized balance as at March 31, 2023 is H 254.80 crore (2022: Nil).

NOTE-47: REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company is in the business of oil and gas and it earns revenue primarily from sale of petroleum products, petrochemicals, Gas, E&P and Others. Revenue is recognized when control of the goods and services is transferred to the customer.

Generally, Company enters into contract with customers:

a. On delivered basis in case of Retail Sales, LPG and Aviation.

b. On Ex-Marketing Installation as well as delivered basis in case of Lubes and Consumers.

c. On FOB or CIF basis depending on terms of contract in case of Export sales.

Majority of Company's sales are to retail category which are mostly on cash and carry basis. Company also execute supply to Institutional Businesses(IB), Lubes , Aviation on credit which are for less than a year.

For maintaining uninterrupted supply of products, customers generally deposit amount in advance with the Company against which orders for purchase of products are placed by the customers. Based on these orders, supply is maintained by the Company and revenue is recognized when the goods are delivered to the customer by adjusting the advance from customers. Revenue in cases of performance obligation related to delivered sales are recognized in time based on delivery of identified and actual goods and no significant judgement is involved.

The Company also extends volume/slab based discounts to its customers on contract to contract basis for upliftment of products and it is adjusted in revenue as per the terms of the contract. Company also runs loyalty programmes and incentive schemes for its retail and bulk customers. Loyalty points are generated and accumulated by the customers on doing transactions at Company's outlet which can be redeemed subsequently for fuel purchases from Company outlets. Revenue is recognized net of these loyalty points and incentive schemes.

Besides this, though not significant, the Company also undertakes construction contracts on deposit basis. Revenue is recognized for these contracts over time using input based on cost incurred. Similarly non-refundable deposits received from Retail Outlets (ROs) are recognized as revenue over time on proportionate basis.

NOTE-49: OTHER DISCLOSURES

1 In order to provide clean cooking fuel to BPL families, Government has approved "Pradhan Mantri Ujjwala Yojana (PMUY)" scheme where free LPG connections are issued by Oil Marketing Companies (OMCs) to the women belonging to the Below Poverty Line (BPL) households as per SECC -2011 (Rural) database. The scheme was launched on May 1, 2016. As per the scheme, the initial cost towards connection charges (Refundable deposit) would be borne by the Central Government for each card holder. Few State Governments have also extended this scheme to other beneficiaries. As per the scheme, OMCs would provide an option for EMI/ Loans towards cost of burner and 1st refill to the PMUY consumers. The loan amount is to be recovered from the subsidy amount payable by the government to the customers on each refill sale. During the year, discounting of the loan has been done based on assumption of average refills in a year and average subsidy rate per cylinder under respective range of subsidy buckets.

The amount of outstanding as at March 31, 2023 towards PMUY claim from Central Government is H 46.30 crore (2022: H 8.63 crore) and loan to PMUY consumers is H 2,56727 crore (2022: H 2,770.67 crore) (net of recovery through subsidy). Against the above loan, a provision for doubtful loans amounting to H 766.38 crore (2022: H 601.46 crore) has been created as at March 31, 2023 against the beneficiaries who have not taken any refill for more than 12 months based on expected credit loss(ECL) model and applying experience factor based on experience ratio of doubtful provision on more than 12 months to the loans in less than 12 month category. (Also refer Credit Risk under Note 40)

The Company has remeasured the gross carrying amount of PMUY loan as at Balance Sheet date based on revised estimated future contractual cash flows resulting in reduction in PMUY loans by H 41.51 crore (2022: H 489.00 crore) which has been charged to Statement of Profit and Loss in Note - 29.1 under the head "Amortisation and Remeasurement of PMUY Assets"'

2 Pursuant to the Board approval for formation of a Joint Venture company between Indian Oil Corporation Ltd and Coal India Ltd for transfer of explosives business to the said venture Company on slump sale basis at a value of H 311.00 crore (Net Assets WDV of H 132.00 crore as at March 31, 2022), consent of Niti Ayog was initially received for formation of the JV vide letter dated April 27 2018. However, the formation of the JV is not carried forward on account of subsequent communication dated July 11, 2018 from MoPNG. The matter is under deliberation and accordingly, the explosive business continues to be in operation as at March 31, 2023. The Net Asset WDV of the business as at March 31, 2023 is H 79.70 crore.

3 During the FY 2022-23, the Company has recognised an arbitration award in its favour in a case between the Company & Nayara Energy Limited ("NEL" formerly known as Essar Oil Ltd.). NEL has paid Take or Pay ("ToP") liability amounting to H288.62 crore and interest thereon amounting to H483.81 crore. Additionally, the Company had already encashed bank guarantee amounting to H186.00 crore. As per the award NEL has make-up gas right for ToP payments and accordingly H474.62 crore has been accounted for as "Advance from Customers" under Current Non- Financial liability. The Company has accounted H483.81 crore under the head interest income.

4 During the FY 2022-23, the Company was not able to utilise the committed capacity booked for calendar year 2022 as per regasification agreement dated January 29, 2014 with Petronet LNG Limited (PLL). Hence, PLL has raised invoice for such unused capacity as "Pay for, if not used obligation" amounting to H 22708 crore for Contract Year 2022 as per terms and conditions of the Contract. The Company has provided for such regasification charges under the head miscellaneous expenses in Note-29.1.

5 During certain periods of Financial Year 2019-20, retail selling prices of domestic LPG cylinders were lower than desired rates, resulting in reduced sales realisation. This difference in realisation relating to DBTL customers amounting to H305.40 crore was claimed from Government of India, along with subsidy under PAHAL (DBTL) Scheme 2014. As the claim has not yet been approved, the company has derecognised the same during Financial Year 2022-23 and shown under "Net Loss on de-recognition of Financial Assets at Amortised Cost.

6 Purchase of crude oil from Panna Mukta and some other small oilfields has been accounted for provisionally pending finalisation of agreements with respective parties. The management estimates that no significant adjustments will arise upon finalisation of these agreements.

7 There are no other significant subsequent events that would require adjustments or disclosures in the Financial Statements as at Balance Sheet date, other than those disclosed above.

8 Previous year's comparative figures have been regrouped wherever necessary. Figures in brackets indicate deductions/losses.