1. Statement of Material Accounting Policy Informationl.l.Property, Plant and Equipment

1.1.1. Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment
losses, if any.

1.1.2. Direct expenses incurred during construction period on capital projects are capitalized. Other expenses of the project
group which are allocated to projects costing above the threshold limit are also capitalized. Expenditure incurred on
enabling assets are capitalized.

1.1.3. Gas distribution systems are classified as Property, Plant and Equipment when it is capable of operating in the manner
intended by management.

1.1.4. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the Corporation.

1.1.5. Expenditure on assets, other than plant and machinery, LPG cylinders and pressure regulators, not exceeding the
threshold limit are charged to Statement of profit and loss.

1.1.6. An item of Property, Plant and Equipment and any significant part initially recognised separately as part of Property,
Plant and Equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use
or disposal; or when the Property, Plant and Equipment has been re-classified as ready for disposal. Any gain or loss
arising on de-recognition of the asset is included in the Statement of Profit and Loss when the asset is de-recognised.

1.1.7. Spare parts which meet the definition of Property, Plant and Equipment are capitalized as Property, Plant and
Equipment in case the unit value of the spare part is above the threshold limit. In other cases, the spare part is
inventorized on procurement and charged to Statement of Profit and Loss on consumption.

1.1.8. The residual values and useful lives of Property, Plant and Equipment are reviewed at each financial year end and
changes, if any, are accounted in line with revisions to accounting estimates.

1.1.9. In respect of the capital goods common for both GST and non-GST products, the GST input tax credit is taken on
the eligible portion based on GST and non-GST product ratio in the month of procurement and the ineligible portion
is capitalized. Subsequently, this ratio is reviewed every month as per the GST provisions and the differential GST
amount arising due to changes in the ratio is capitalized beyond the materiality threshold.

1.1.10. The Corporation has elected to use the exemption available under Ind AS 101 to continue the carrying value for all
of its Property, Plant and Equipment as recognized in the Financial Statements as at the date of transition to Ind AS,
measured as per the previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2015).

1.2.Depreciation

Depreciation on Property, Plant and Equipment are provided on the straight-line basis, over the estimated useful lives of

assets (after retaining the estimated residual value of upto 5%). These useful lives and residual value have been determined as

prescribed in the Schedule II of the Act, except in following cases:

1.2.1. Plant & Machinery at Retail Outlets (other than Storage tanks and related equipments) are depreciated over a useful
life of 15 years based on the technical assessment.

1.2.2. Electronic carousels along with its downstream equipment and aviation refuelling equipment classified as plant and
machinery are depreciated over a useful life of 15 years based on the technical assessment.

1.2.3. The Dispensing Units for MS/HSD classified under Dispensing Pumps are depreciated over a useful life of 10 years
based on technical assessment.

1.2.4. Computer equipments are depreciated over a period of 3 years and Mobile phones are depreciated over a period of
2 years based on internal assessment. Electronic and electrical equipments provided to management staff under
furniture on hire scheme are depreciated over a period of 4 years as per internal assessment. Other furniture items
provided to management staff are depreciated over a period of 6 years as per internal assessment.

1.2.5. Solar Panels are depreciated over a period of 25 years based on the technical assessment of useful life and applicable
warranty conditions.

1.2.6. Moulds, used for the manufacturing of the packaging material for Lubricants, are depreciated over a period of 5 years
based on technical assessment of useful life.

1.2.7. In case of assets covered under specific agreements, e.g. assets at Railway Consumer Depots, etc., useful life is as
per terms of agreement or as per Schedule II of the Act, whichever is lower.

1.2.8. Items of Property, Plant and Equipment costing not more than the threshold limit are depreciated at 100 percent in
the year of acquisition except LPG Cylinders and Pressure Regulators which are depreciated over a useful life of 15
years based on the technical assessment.

1.2.9. Components of the main asset that are significant in value and have different useful lives as compared to the main
asset are depreciated over their estimated useful life. Useful life of such components has been assessed based on
historical experience and internal technical assessment.

1.2.10. Depreciation on spare parts specific to an item of Property, Plant and Equipment is based on life of the related
Property, Plant and Equipment. In other cases, the spare parts are depreciated over their estimated useful life based
on the technical assessment.

1.2.11. Depreciation is charged on additions/deletions on pro-rata monthly basis including the month of addition/deletion.

1.2.12. The Residual value of LPG Cylinders (other than Composite LPG Cylinders) and Pressure Regulators have been
estimated at 25% of the original cost based on the historical experience and internal technical assessment. The
residual value of Composite LPG Cylinders is estimated at 10% of the original cost based on technical assessment.

1.2.13. The residual value of catalyst having precious/noble metals is estimated at the cost of the precious/noble metal
content in catalyst which is expected to be extracted at end of their useful life, plus 5% of original cost of catalyst
excluding cost of precious/noble metals based on the experience and internal technical assessment.

1.2.14. In respect of immovable assets constructed on leasehold land, useful life as per Schedule II or lease period of land
(including renewable/likely renewable period) whichever is lower is considered.

1.3.Capital Work In Progress/Intangible Assets under Development

Expenditure, including eligible borrowing cost, net of income earned, during the construction/development period of Property,

Plant and Equipment, and Intangible Assets respectively is included under capital work-in progress or intangible assets under

development, as the case may be.

1.4.Intangible Assets

1.4.1. Goodwill:

Goodwill that arises on a business combination in accordance with Ind AS 103 'Business Combinations' is subsequently
measured net of any accumulated impairment losses. Goodwill is not amortized but is tested for impairment annually.

1.4.2. Other Intangible Assets

1.4.2.1. Intangible assets are carried at cost net of accumulated amortization and accumulated impairment losses, if any.
Expenditure on internally generated intangibles, excluding development costs, is not capitalized and is reflected in
Statement of Profit and Loss in the period in which such expenditure is incurred.

1.4.2.2. Assets where entire output generated is committed to be sold to entities providing public services for almost
entire useful life of the asset are classified as intangible assets as per the requirements of applicable Ind AS and
are amortized (after retaining the residual value, if applicable) over their useful life or the period of the agreement,
whichever is lower.

1.4.2.3. In cases where, the Corporation has constructed assets on behalf of public infrastructure entities and the Corporation
has only a preferential right to use, these assets are classified as intangible assets and are amortized (after retaining
the residual value, if applicable) over their useful life or the period of the agreement, whichever is lower.

1.4.2.4. Intangible assets with indefinite useful lives, such as right of way which is perpetual and absolute in nature, are not
amortized, but are tested for impairment annually. The useful lives are reviewed at each period to determine whether
events and circumstances continue to support an indefinite useful life assessment for that asset. If not, the change
in useful life from indefinite to finite is made on a prospective basis. The impairment losses on intangible assets with
indefinite life is recognized in the Statement of Profit and Loss.

1.4.2.5. Expenditure incurred for creating/acquiring other intangible assets above threshold limit from which future economic
benefits will flow over a period of time, is amortized over the estimated useful life of the asset or five years, whichever
is lower, on a straight-line basis, from the time the intangible asset starts providing the economic benefit. In other
cases, the expenditure is reflected in the Statement of Profit and Loss in the year in which the expenditure is incurred.
The amortization period and the amortization method for an intangible asset with a finite life are reviewed at each
year end. The amortization expense on intangible asset with finite useful lives and impairment losses in case there
is an indication that the intangible asset may be impaired, is recognized in the Statement of Profit and Loss.

1.4.2.6. The Corporation has elected to use the exemption available under Ind AS 101 to continue the carrying value for all
of its intangible assets as recognized in the Financial Statements as at the date of transition to Ind AS, measured as
per the previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2015).

1.5.Investment Property

1.5.1. Investment properties are stated at cost net of accumulated depreciation and accumulated impairment losses, if any.

1.5.2. Any gain or loss on disposal of investment property calculated as the difference between the net proceeds from
disposal and the carrying amount of the Investment Property is recognized in Statement of Profit and Loss.

1.5.3. On transition to Ind AS i.e. April 1, 2015, the Corporation has re-classified certain items from Property, Plant and
Equipment to investment property. For the same, Corporation has elected to use the exemption available under Ind
AS 101 to continue the carrying value for such assets as recognized in the Financial Statements as at the date of
transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition
(April 1, 2015).

1.6. Borrowing costs

1.6.1. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset that
necessarily takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost
of such assets. All other borrowing costs are charged to the Statement of Profit and Loss.

1.6.2. Investment Income earned on the temporary investment of funds of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalization.

1.7. Non-current assets/Disposal Group held for sale

Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs of disposal

(upto residual value of asset).

1.8. Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset to lessee for a period

of time in exchange for consideration.

Corporation shall reassess whether a contract is, or contains, a lease if the terms and conditions of the contract are changed.

1.8.1. As a Lessee

At the commencement date, corporation recognizes a right-of-use asset at cost and a lease liability at present value
of the lease payments that are not paid at commencement date.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability (at
present value) adjusted for any lease payments made at or prior to the commencement date of the lease plus any
initial direct costs less any lease incentives (at present value) except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short-term and low value leases, the Corporation recognizes the
lease payments as an operating expense. Lease of items such as IT Assets (tablets, personal computers, mobiles,
POS machines etc.), small items of office furniture etc. are treated as low value.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are
discounted using the Corporation's incremental borrowing rate computed on periodic basis based on lease term.
Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the Corporation
changes its assessment, whether it will exercise an extension or a termination option.

Right-of-use assets are depreciated over the lease term on systematic basis and Interest on lease liability is charged
to Statement of Profit and Loss as Finance cost.

The Corporation has elected not to apply Ind AS 116 "Leases" to Intangible assets.

1.8.2. As a Lessor

A lessor shall classify each of its leases as either an operating lease or a finance lease.

1.8.2.1. Finance leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of
an underlying asset.

Corporation shall recognize assets held under a finance lease in its balance sheet and present them as a receivable
at an amount equal to the net investment in the lease.

1.8.2.2. Operating leases

A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to
ownership of an underlying asset.

Corporation shall recognize lease payments from operating leases as income on systematic basis in the pattern in
which benefit from the use of the underlying asset is diminished.

1.9. Impairment of Non-financial Assets

1.9.1. Non-financial assets other than inventories, deferred tax assets and non-current assets classified as held for sale
are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such
indication exists, or when annual impairment testing for an asset is required, the Corporation estimates the asset's
recoverable amount. The recoverable amount is the higher of the asset's or Cash-Generating Unit's (CGU) fair value
less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset
does not generate cash inflows that are largely independent of those from other assets or groups of assets.

1.9.2. The carrying amount of Goodwill arising from business combination is allocated to CGUs or groups of CGUs that are
expected to benefit from the synergies of the combination.

1.9.3. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and
is written down to its recoverable amount.

1.10. Inventories

1.10.1. Inventories are stated at cost and net realizable value, whichever is lower. Cost of inventories comprises of expenditure

incurred in the normal course of business in bringing inventories to their present location including appropriate
overheads apportioned on a reasonable and consistent basis and are determined on the following basis:

• Crude oil, traded goods and finished products other than lubricants are determined on First in First out basis.

• Other raw materials, packages, lubricants and stores and spares are determined on weighted average basis.

• Stores and spares in transit are valued at cost.

• The cost of Work-in-Progress is determined at raw material cost plus cost of conversion.

1.10.2. Customs duty on Raw materials/Finished goods lying in bonded warehouse are provided for at the applicable rates
except where liability to pay duty is transferred to consignee.

1.10.3. Excise duty on finished stocks lying at manufacturing locations is provided for at the assessable value applicable at
each of the locations based on end use.

1.10.4. The net realizable value of finished goods and stock in trade are based on the inter-company transfer prices and
final selling prices (applicable at the location of stock) for sale to oil marketing companies and retail consumers
respectively. For the purpose of stock valuation, the proportion of sales to oil marketing companies and retail
consumers are determined on all India basis and considered for stock valuation at all locations.

1.10.5. Raw Materials held for use in the production of finished goods are not written down below cost except in cases
where raw material prices have declined, and it is estimated that the cost of the finished goods will exceed their net
realizable value.

1.10.6. Obsolete, slow moving, surplus and defective stocks are identified at the time of physical verification of stocks and
where necessary, provision is made for such stocks.

1.11. Revenue Recognition

1.11.1. Sale of goods

Revenue from the sale of goods is recognized at a point in time when the performance obligation is satisfied by
transferring the related goods to the customer. The performance obligation is considered to be satisfied when the
customer obtains control of the goods.

Revenue from the sale of goods includes excise duty and is measured at the transaction price received or receivable
(after including transaction price allocations related to arrangements involving more than one performance
obligation), net of returns, taxes or duties collected on behalf of the Government and applicable trade discounts
or rebates.

Revenue is allocated between loyalty programmes and other components of the sale. The amount allocated to the
loyalty programme is deferred and is recognized as revenue when the Corporation has fulfilled its obligation to supply
the products under the terms of the programme.

Any upfront fees earned by the Corporation with no identifiable performance obligation are recognized as revenue
on a systematic basis over the period of the Contract.

Where the Corporation acts as an agent on behalf of a third party, the associated income is recognized on a net basis.

Claims in respect of subsidy on LPG and SKO, from Government of India are booked on in-principle acceptance
thereof on the basis of available instructions/clarifications, subject to final adjustments as stipulated.

1.11.2. Interest income is recognized using Effective Interest Rate (EIR) method.

1.11.3. Dividend is recognized when right to receive the payment is established, it is probable that the economic benefits
associated with the dividend will flow to the entity and the amount of dividend can be measured reliably.

1.11.4. Income from sale of scrap is accounted for on realization.

1.11.5. Claims other than subsidy claims on LPG and SKO, from Government of India are booked when there is a reasonable
certainty of recovery.

1.12. Classification of Income/Expense

1.12.1. Income/expenditure (net) in aggregate pertaining to prior year(s) above the threshold limit are corrected
retrospectively in the first set of Financial Statements approved for issue after their discovery by restating the
comparative amounts and/or restating the opening Balance Sheet for the earliest prior period presented.

1.12.2. Prepaid expenses upto threshold limit in each case, are charged to Statement of Profit and Loss as and when incurred.

1.12.3. Deposits placed with Government agencies/local authorities which are perpetual in nature are charged to Statement
of Profit and Loss in the year of payment.

1.13. Employee Benefits

1.13.1. Short-term employee benefits

Short-term employee benefits are recognized as an expense at an undiscounted amount in the Statement of Profit
and Loss of the year in which the related services are rendered.

1.13.2. Post-employment benefits

Defined Contribution Plans:

Obligations for contributions to defined contribution plans such as pension are recognized as an expense in the
Statement of Profit and Loss as the related service is provided. Prepaid contributions are recognized as an asset to
the extent that a cash refund or a set-off in future payments is available.

Defined Benefit Plans:

The Corporation's net obligation in respect of defined benefit plans such as gratuity, other post-employment benefits
etc., is calculated separately for each plan by estimating the amount of future benefit that the employees have earned
in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligation is performed at each reporting period end by a qualified actuary
using the Projected Unit Credit method. When the calculation results in a potential asset for the Corporation, the
recognized asset is limited to the present value of the economic benefits available in the form of any future refunds
from the plan or reductions in future contributions to the plan.

The current service cost of the defined benefit plan, recognized in the Statement of Profit and Loss as part of
employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee service
in the current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately
in the Statement of Profit and Loss. The net interest is calculated by applying the discount rate to the net balance
of the defined benefit obligation and the fair value of plan assets. This net interest is included in employee benefit
expense in the Statement of Profit and Loss.

Re-measurements which comprise of actuarial gains and losses, the return on plan assets (excluding amounts
included in the net interest on the net defined benefit liability (asset)) and the effect of the asset ceiling (if any,
excluding amounts included in the net interest on the net defined benefit liability (asset)), are recognized in Other
Comprehensive Income.

1.13.3. Other long-term employee benefits

Liability towards other long term employee benefits - leave encashment and long service awards etc., are determined
on actuarial valuation by qualified actuary by using Projected Unit Credit method.

The current service cost of other long terms employee benefits, recognized in the Statement of Profit and Loss as part
of employee benefit expense, reflects the increase in the obligation resulting from employee service in the current
year, benefit changes, curtailments and settlements. Past service costs are recognized immediately in the Statement
of Profit and Loss. The interest cost is calculated by applying the discount rate to the balance of the obligation. This
cost is included in employee benefit expense in the Statement of Profit and Loss. Re-measurements are recognized
in the Statement of Profit and Loss.

1.14. Foreign Currency Transactions

1.14.1. Monetary items:

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the transaction
first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on the
reporting date.

Exchange differences arising on settlement or translation of monetary items (except for long-term foreign currency
monetary items outstanding as of March 31, 2016) are recognized in Statement of Profit and Loss either as profit or
loss on foreign currency transaction and translation or as borrowing costs to the extent regarded as an adjustment
to borrowing costs.

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 March 31, 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 and in other cases, if any, accumulated in "Foreign Currency
Monetary Item Translation Difference Account" and amortized over the balance period of the liability.

1.14.2. Non - Monetary items:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions.

1.15. Investment in Subsidiaries, Joint Ventures and Associates

Investments in equity shares of Subsidiaries, Joint Ventures and Associates are recorded at cost and reviewed for impairment
at each reporting date.

1.16. Government Grants

1.16.1. Government grants are recognized where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with.

1.16.2. When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic basis over
the periods that the related costs, for which it is intended to compensate, are expensed.

1.16.3. Government grants relating to Property, Plant and Equipment are presented as deferred income and are credited to
the Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset.