A. i) The cost of land includes provisional payments towards cost, compensation, and other accounts for which detailed
accounts are yet to be received from the authorities concerned.
ii) Pending decision of the Government/Court, additional compensation, if any, payable to the land owners and the Government for certain lands acquired, is not quantifiable, and hence not considered.
iii) Refer Note 2.3 in respect of transfers to Investment Property
iv) Refer Note 44.1
B. The cost of assets includes EPCG benefit (net of GST ITC), net of VAT CREDIT/CENVAT/GST ITC wherever applicable
C. Includes 5/24 share of total cost of the Railway Siding jointly owned by the Company along with Madras Fertilizers Limited, Madras Petrochem Limited, Steel Authority of India Limited and Rashtriya Ispat Nigam Limited. Net block of Railway Sidings - ? 0.003 Crore (2025 : ? 0.003 Crore).
D. Pertains to Cauvery Basin Refinery (refer Note 44.2).
E. Additions to Gross Block include capitalisation of Borrowing Cost ? Nil (2025: ? Nil)
F. Depreciation and amortisation during the year includes Construction period expenses of ? 0.64 Cr (2025: ? 0.68 Cr) and depreciation attributable to the extent of reversal of impairment loss of ? Nil (2025: ? Nil)
G. For details regarding to hypothecation/charge on PPE may be referred to Note 15
H. For further details regarding to ROU assets refer Note 33 related to leases.
I. 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 material accounting policies (Note-1)
J. Freehold land includes land assigned for industrial purposes, which the Company intends to utilise for future use, including future projects and green belt development and is accordingly classified as owner-occupied property * 71.05 acres of Land has been leased to IOCL for a period of 29 years and 11 months for establishing its lube blending facility and the same has been classified as owner-occupied property, as the arrangement facilitates cost-effective offtake of CPCLs LOBS production, thereby positively influencing overall sales realisation and related cash flows.
CPCL sponsors a polytechnic college for which 20 acres of the Company's land has been leased to the CPCL Educational Trust for 50 years to promote local community welfare and skill development and the same is classified as owner-occupied property being the land held for administrative purposes.
The above existing land of the Company at CBR, measuring around 619 acres (including poramboke land of around 30 acres, the value of which is yet to be determined by the Government authorities), has been identified for the implementation of a 9 MMTPA refinery-cum-petrochemical complex through a Joint Venture, CBRPL subject to obtaining necessary statutory approvals. It is pertinent to note that, earlier, the portion of land was also used for hydrocarbon storage for processing in Manali refinery. Currently the storage tanks are not in use and most of the residues have been evacuated and further during the year infusion of capital by IOCL by way of subscription of share warrants and the adjustment of project expenditure incurred by CPCL towards subscription of share warrants, has been carried out. Accordingly, the land is classified as Investment Property.
Since the arrangements in this regard are yet to be finalized, disclosures relating to contractual obligations, leasing arrangements etc , as required under Ind AS 40, have not been made.
The fair value of the Investment Property (Other than poramboke land) as at 31.03.2026 is ? 264 crore, based on a valuation carried out by a Registered Independent Valuer . The valuation has been determined using the market approach, with
reference to recent transaction prices for similar properties in comparable locations, adjusted for specific characteristics of the property.
The fair value measurement is categorised under Level 3 of the fair value hierarchy, as defined in Ind AS 113, based on unobservable inputs wherein valuation done by independent valuer.
The recognition of deferred tax assets / liability is based on the "Asset and liability method", determined on the basis of difference between the financial statement and tax bases of the assets and liabilities, by using the enacted tax rates applicable to the company.
The deferred taxes are recognised to the extent, they are more likely than not to be realised, based on the best estimates as at the balance sheet date. In making such estimates, all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income and pricing assumptions based on the past trend are considered. Such estimates are subject to significant fluctuations in earnings and timing of such earnings.
(i) As per the Formation Agreement entered into between the promoters, an offer is to be made to the Naftiran Intertrade Company Limited (NICO), an affiliate of National Iranian Oil Company (NIOC) in any issue of the Capital in proportion to the shares held by them at the time of such issue to enable them to maintain their shareholding at the existing percentage.
(ii) Based on special resolution passed by the shareholders through postal ballot on 16.07.2015, the company has allotted 100 Crore Non Convertible Cumulative Redeemable Preference Shares of ? 10 each for cash at par amounting to ? 1000 Crore to Indian Oil Corporation Ltd, the holding company on private placement preferential allotment basis on 24.09.2015 after receipt of full subscription amount.
Out of ? 1000 crore Non-convertible cumulative redeemable preference shares, ? 500 Crore was redeemed on 06.06.2018 and remaining ? 500 Crore was redeemed on 23.09.2025 Accordingly there is no outstanding preference shares as at 31.03.2026.
Preference Shares are classified as financial liability (long term borrowing) as per Ind AS 32 - Refer note - 15(C)
B. Rights, preferences and restrictions attached to Equity shares
Equity Shares: The company has one class of equity shares having a par value of ? 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding.
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 remeasurement of defined benefit plan as per actuarial valuations which will not be re-classified to statement of profit and loss in subsequent periods.
Other Reserves
Reserves created in compliance with the Provision of the Companies Act, the utilisation of which is restricted to the purposes mandated therein:
A Capital Redemption Reserve Account : As per Companies Act 2013, capital redemption reserve is created to redeem preference shares. Utilisation of this reserve is governed by the provisions of the Companies Act 2013.
B Insurance Reserve : Insurance Reserve is created by the company to offset the risk of loss of assets, to the extent not insured with external insurance agencies. The reserve is utilised to offset the losses on such uninsured proportion.
C Securities Premium : Premium on shares issued by the company appropriated under this reserve.
D Capital Reserve: Capital Reserve was created through forfeiture of shares and shall be utilised as per the provisions of the Companies Act 2013.
Fair Value Through Other Comprehensive Income :
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.
C. Non Convertible Cumulative Redeemable Preference Shares
Preference Share is treated as financial liability as per Ind AS 32, as these are redeemable on maturity for a fixed
determinable amount and carry fixed rate of dividend.
(i) Rights, preferences and restrictions attached to Preference shares:
The Company has one class of preference shares i.e. Non-Convertible Cumulative Redeemable Preference Shares
(NCCRP Shares) of ? 10 per share.
(a) Such shares shall confer on the holders thereof, the right to preferential dividend from the date of allotment i.e., 24.09.2015
(b) Such shares shall rank for capital and dividend (including all dividend undeclared upto the commencement of winding up) and for repayment of capital in a winding up, pari passu inter se and in priority to the Ordinary Shares of the Company, but shall not confer any further or other right to participate either in profits or assets.
(c) The holders of such shares shall have the right to receive all notices of general meetings of the Company and have a right to vote only on resolution placed before the share holders which directly affect their rights attached to preference shares like winding up of company or repayment of preference shares etc.
(d) The tenure of the NCCRP Shares would be 10 years , with put and call option. Either the preference shareholder shall have right to exercise Put option or the Issuer shall have right to exercise Call option to redeem the preference shares, in whole or in part after the 5 years of the preference issue date. However, it is also agreed that Put & Call option before the 5 year period can be exercised by mutual consent of both the parties by giving 30 days notice
(e) Dividend rate shall be equivalent to the Post tax yield of AAA rated corporate bond i.e. prevailing (at the time of issue) 10 year G-Sec yield plus spread on AAA rated corporate bond i.e., 6.65% p.a.
(ii) Out of ? 1000 crore Non-convertible cumulative redeemable preference shares, ? 500 Crore was redeemed on
06.06.2018 and the remaining ? 500 Crore was redeemed on 23.09.2025 Accordingly there is no outstanding
preference shares as at 31.03.2026.
(v) Preference dividend has been provisionally accrued as finance cost. However, as per the Companies Act 2013, the preference shares is treated as part of share capital and the provisions of the Act relating to declaration of Preference Dividend would be applicable.The Board of Directors have recommended preference dividend of 6.65% on the outstanding preference shares amounting to ? 15.94 Cr for the year (2024-25 : ? 33.25 cr).
(vi) Refer Note -13 & 13A - Authorised and issued Preference Share capital and the reconciliation of no. of shares of preference shares.
Disclosures in compliance with Ind AS 19 on "Employee Benefits" is as under:
A. Defined Contribution Plans- General Description
Pension Scheme:
During the year, the company has recognised ? 34.66 Crore (2025: ? 23.44 Crore) towards contribution to Defined Employees Pension Scheme in the Statement of Profit and Loss / CWIP (included in Contribution to Provident & Other Funds in Note - 25 / Construction period expenses in Note-2.1)
During the year, the company has recognised ? 1.37 Crore (2025: ? 1.48 Crore) as contribution to EPS-95 in the Statement of Profit and Loss / CWIP (included in Contribution to Provident and Other Funds in Note - 25 / Construction period expenses in Note-2.1)
B. Defined Benefit Plans- General Description
1 Provident Fund:
The Company's contribution to the Provident Fund is remitted to separate provident fund trust established for this purpose based on a fixed percentage of the eligible employee's salary and charged to Statement of Profit and Loss. Shortfall, if any, in the fund assets, based on the Government specified minimum rate of return, will be made good by the Company. The Provident Fund maintained by the PF Trust in respect of which actuarial valuation is carried out. Accordingly, during the current financial year there has been no interest shortfall (2025 : ? 4.60 Crore) provided by the company towards the current and future interest shortfall/losses beyond available surplus. The company has determined its probable liability at ?9.81 Crore (2025: ? 9.81 Crore) in respect of investments by the Provident Fund trust turning into stressed assets, which were made to be good by the company. As there has been no change in the probable liability in this regard, no additional expenditure has been charged under Employee Benefit Expenses in the current year.
2 Gratuity:
Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount equal to 15/26 of the eligible salary for every completed year of service subject to a maximum of ? 0.25 Crore at the time of separation from the company. Besides, the ceiling of gratuity increases by 25% whenever IDA rises by 50%. The company has funded the liability through insurance company.
3 Post Retirement Medical Scheme (PRMS):
PRMS provides medical benefit to retired employees and eligible dependant family members.The company has funded the liability through insurer managed funds.
4 Workman Compensation:
The company pays an equivalent amount of 100 months salary to the family member of employee, if employee dies due to accidental death while he is on duty. This scheme is not funded by the company. The liability originates out of the workman compensation Act and Factory Act.
5 Ex gratia Scheme:
Ex-gratia is payable to those employees who have retired before January 01,2007 and 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).
C. Other Long-Term Employee Benefits - General Description
1 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, the company, 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. The net expenditure accounted towards encashment of sick leave for the year is ? 0.44 Crore (2025: ? 5.26 crore). The accumulated provision for towards encashment of sick leave is ? 31.5 Crore (2025: ? 34.14 Crore).
2 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. MoPNG has advised that the issue of Long Service Award has been reported as an audit para in the Annual Report of CAG. The Corporation has been clarifying its position to MoPNG individually as well as on industry basis on the rationale that 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. The net expenditure accounted on this account is ? 0.59 Crore (2025: ? 0.99 Crore). The accumulated provision in this regard is ? 8.09 Crore (2025: ? 8.75 Crore).
3 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 entitlements of LFA.
Note - 33 : 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 purpose of its plants, facilities, offices, etc..,
The Employees Township at Cauvery Basin Refinery has been constructed on land area of thirty four acres and forty nine cents of land leased from a trust on five-year renewable basis.
B Contingent Liabilities
Contingent Liabilities amounting to ?735.37 Crore (2025: ?720.28 Crore) are as under:
(i) ? 616.75 Crore (2025: ? 589.48 Crore) being the demands raised by the Central Excise / Customs / Service Tax Authorities including interest of ? 253.16 Crore (2025: ? 225.89 Crore).
(ii) ? 10.27 Crore (2025: ? 10.27 Crore) being the demands raised by the VAT/ Sales Tax Authorities and includes no interest (2025: Nil).
(iii) ? 33.6 Crore (2025: ? 45.78 Crore) on account of Projects for which suits have been filed in the Courts or cases are lying with Arbitrator. This includes interest of ? 1.64 Crore (2025: ? 1.64 Crore).
(iv) ? 74.75 Crore (2025: ? 74.75 Crore) in respect of other claims including interest of ? 0.25 Crore (2025: ? 0.25 Crore).
The Company has not considered those disputed demands / claims as contingent liabilities, for which, the outflow of resources has been considered as remote.
C Commitments
(i) Capital Commitments
Estimated amount of contracts remaining to be executed on Capital Account not provided for ? 258.65 Crore (2025: ? 234.14 Crore).
(ii) Other Commitments
The Company has an export obligation to the extent of ? 219.05 Crore (2025: ? 219.05 Crore) on account of concessional rate of customs duty availed under EPCG license scheme on procurement of capital goods and the same is expected to be fulfilled by way of exports.
2. The management assessed that Trade Receivables, Cash and Cash Equivalents, Bank Balances, Deposit for Leave Encashment Fund, Recoverable from Employee Benefits Trusts, Other Non-derivative Current Financial Assets, Short-term Borrowings, Trade Payables, Floating Rate Loans and Other Non-derivative Current Financial Liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
3. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
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 government securities : Closing quoted price in Clearing Corporation of India Limited
B. Level 2 Hierarchy:
(i) Derivative instruments at fair value through profit or loss viz.Foreign exchange forward contracts: Replacement cost quoted by institutions for similar instruments by employing use of market observable inputs are considered.
(ii) Loans to employees, Loan to related parties, Security deposits paid and Security deposits received,Lease obligations:
Discounting future cash flows using rates currently available for items on similar terms, credit risk and remaining maturities
(iii) Non Convertible Redeemable Preference shares: The fair value of Preference shares is estimated by discounting future cash flows.
(iv) Term Loans from Oil Industry Development Board (OIDB): Discounting future cash flows using rates currently available for similar type of borrowings (OIDB Borrowing rate) using exit model as per Ind AS 113.
(v) Term Loans from State Industries Promotion Corporation of Tamil Nadu (SIPCOT): Discounting future cash flows using rates currently available for items on similar terms and remaining maturities.
C. Level 3 Hierarchy:
(i) Unquoted Equity & related Instruments: Fair values have been estimated using using the Adjusted Net Asset Value (NAV) Method as the company's project is under construction an accordingly sensitivity disclosures w.r.t significant unobservable inputs are not being made. Under this method, the value of the Company is determined by adjusting the book value of its assets and liabilities to reflect their fair values as at the valuation date.Since the fair value approximates the carrying value the reconciliation is not made.
Note - 36 : 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 and employee liabilities. The main purpose of these financial liabilities is to finance the Company's operations and 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's requirement of crude oil imports are canalized through its holding company, Indian Oil Corporation Limited. The derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that trading in derivatives are taken only to hedge the various risks that the company is exposed to and not for speculation purpose.
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.
To ensure alignment of Risk Management system with the corporate and operational objective and to improve upon the existing procedure, the Executive Committee of the company constituted a Committee comprising of officials from various functional areas to identify the risks in the present context, prioritize them and formulate proper action plan for implementation. The Committee has formulated the Risk Management Policy.
The Action Taken Report on the Risk Management Policy for the year 2025-26 was reviewed by the Risk Management committee, Audit committee and Board of Directors at their meetings held on 24th April 2026.The Board of Directors oversees 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 risks etc. Financial instruments affected by market risk include Borrowings, Deposits and derivative financial instruments.
The sensitivity analysis in the following sections relate to the position as at 31 March 2026 and 31 March 2025
The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other postretirement obligations, provisions, and other non-financial assets.
The following assumptions have been made in calculating the sensitivity analysis:
- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held as at 31 March 2026 and 31 March 2025 including the effect of hedge accounting.
- The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant as at 31 March 2026.
1) Interest rate risk
The Company is also 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's interest rate risk management includes 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. As at 31 March 2026, approximately 100% of the Company's Long term borrowings are at fixed rate of interest (31 March 2025: 100%).
The Company has no exposure to floating interest rate risk and accordingly, no sensitivity analysis has been presented.
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, hedging undertaken on occurrence of pre-determined triggers as per the Risk management policy. The hedging is undertaken through forward contracts.
The sensitivity to a reasonably possible change in USD/INR exchange rates, with all other variables held constant and the impact on the Company's profit before tax due to changes in the fair value of monetary assets and liabilities is tabulated below. The Company's exposure to foreign currency changes for all other currencies 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, 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.
B. Credit risk
1) Trade receivables
Customer credit risk is managed according to the Company's policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. Transactions other than with oil marketing companies are either generally covered by Letters of Credit, Bank Guarantees or cash-and-carry basis.
2) Financial instruments and cash deposits
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 so as to minimise concentration of risks and mitigate consequent financial loss.
The Company's maximum exposure to credit risk for the components of the Balance Sheet at 31 March 2026 and 31 March 2025 is the carrying amounts as provided in Note 4, 5, 6, 11 & 12.
C. Liquidity risk
The Company monitors its risk of shortage of funds using detailed cash flow projections which is monitored closely on daily basis. The Company seeks to manage its liquidity requirement by maintaining access to both short term and long term debt markets. In addition, Company has committed credit facilities from banks.
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, commercial papers, bank loans and debentures. and finance leases. The Company assessed the concentration of risk and concluded it to be low. The Company has access to a sufficient variety of sources of funding.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.
D. Excessive risk concentration
Substantial portion of the Company's sales is to the Holding Company, Indian Oil Corporation Limited. Consequently, trade receivables from IOCL are a significant proportion of the Company's receivables. Since the operations are synchronised with those of the Holding Company, for optimal results, the same does not present any risk.
E. Collateral
As the Company has been rated investment grade by various rating agencies, there has been no requirement of submitting any collateral for booking of derivative contracts. The Company undertakes derivatives contract only with those counterparties that have credit rating above the internally approved threshold rating. Accordingly, the Company does not seek any collaterals from its counterparties.
Note - 37 : Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company monitors capital using debt equity ratio, which is borrowings divided by Equity. The Company's strategy is to keep the debt equity ratio in the range of 2:1 and 1:1 under normal circumstances. The Company also includes accrued interest in the borrowings for the purpose of capital management.
Note - 40 : Disclosure on Government Grants
A Revenue Grants
1 EPCG Grant
Grant recognised in respect of duty waiver on procurement of capital goods under EPCG scheme of Central Government which allows procurement of capital goods including spares for pre production and post production at zero duty subject to an export obligations of 6 times of the duty saved on capital goods procured.The unamortized capital grant amount as on March 31,2026 is ? 12.55 Crore (2025: ? 12.55 Crore). The company recognised Nil Crore (2025: ? Nil Crore) in the statement of profit & loss account as amortisation of revenue grant. The company expects to meet the export obligations in line with the scheme.
2 Structured package incentive from State Industries Promotion Corporation of Tamil Nadu (SIPCOT)
The Company signed an MoU in 2015 with the Government of Tamil Nadu in respect of RESID Upgradation Project under the Tamil Nadu Industrial Policy, 2014 and the obligations w.r.t capital investment as stipulated therein have been fulfilled.
CPCL is eligible to avail the structured Package of assistance in the form of a soft loan of upto ? 2407.82 crore (i.e 80% of the eligible fixed assets of RESID projects) over a period of 12 years from the commissioning of the RESID project, subject to achievement of incremental production / sales. The loan carries an interest rate of 0.1% per annum, repayable after a period of 12 years from the date of disbursement.During the Current year, Loan amounts of ? 393.97 crore (30th March 2026) have been received (F.Y 2024-25 : ? 370.40 Crore) under the scheme.
The unamortized grant amount as on March 31,2026 is ? 430.45 crore (2025 :? 209.39 Crore). During the year, the company has recognised ? 18.2 crore (2025 :? 7.77 Crore) in the statement of profit and loss as amortisation of grants.
B Capital Grants
i) Oil Industry Development Board (OIDB)
The Company has received capital grant in the form of interest subsidy on loans taken from OIDB. The Company has fully repaid all such loans as at March 31,2026 and accordingly there is no unamortized capital grant amount as on March 31, 2026 (2025:? 0.07 crore) . During the year, the company has recognised ? 0.07 crore (2025: ? 0.62 crore) in the statement of profit and loss as amortisation of capital grants.
Note - 41 : Exposure to Financial Derivatives
Financial and Derivative Instruments:
1 All derivative contracts entered into by the Company are for hedging its foreign currency relating to underlying transactions and firm commitments and not for any speculative or trading purposes.
2 The company has no outstanding forward contract as at 31st March 2026 (2025 : NIL)
Note - 42 : Revenue from Contracts with Customers
The Company is in the business of refining crude oil and it earns revenue primarily from sale of petroleum products and others. Revenue is recognized when control of the goods and services are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. In determining the transaction price for the sale of products, the company considers the effects of variable consideration, the existence of significant financing components, non-cash consideration, and consideration payable to the customer (if any).
Generally, Company enters into contract with customers for sale on EX-MI basis. Majority of Company's sales are to Oil Marketing Companies and Downstream industries for which credit period is less than 1 year. Direct sales to other customers are generally on cash and carry basis. Revenue is recognised when the goods are delivered to the customer by adjusting the amounts deposited by customers, if any.
Note - 44 : Other Disclosures
1 A joint venture (JV) company, Cauvery Basin Refinery and Petrochemicals Limited (CBRPL), was incorporated on January 6, 2023, following approvals from the Board of Directors of CPCL and IOCL , for implementation of a 9 MMTPA refinery-cum-petrochemical complex at Nagapattinam, with CPCL and IOCL initially holding 25% equity each and the balance held by seed investors. As per the JV Agreement dated November 22, 2022, expenditure incurred by CPCL on behalf of the JV is to be treated as equity, quasi-equity, or such other permissible instruments. Subsequently, the capital structure and project cost were revised and approved by the Boards of CPCL and IOCL in February and March 2024 respectively, envisaging IOCL holding 75% and CPCL holding 25%; however, pending requisite approvals, the existing shareholding structure continues.
Approval from DIPAM for the revised structure was received on September 25, 2024, and the proposal has been submitted to the Ministry of Petroleum and Natural Gas, with project configuration currently under review. During the year, the Board of CBRPL approved fund infusion through issuance of share warrants (subscription price of ? 9.95 per warrant on 8,51,75,000 share warrants each to IOCL and CPCL), pursuant to which IOCL infused ? 84.75 Cr and CPCL adjusted ? 84.75 Cr against project expenditure already incurred, in line with the JV Agreement, with further tranches proposed based on projected cash outflows. CPCLs existing land of 619 acres at CBR, with a carrying value of ? 10.63 Cr, is proposed to be leased or transferred to CBRPL, subject to necessary statutory approvals. In view of the equity infusion by IOCL and the adjustment of project expenditure by CPCL towards subscription of share warrants, the said land is classified Investment Property during the current financial year ( Refer Note: 2.3) .
Pending receipt of requisite approvals, the project-related expenditure and associated liabilities have been classified as a disposal group held for transfer in accordance with applicable Indian Accounting Standards. Accordingly, as at March 31, 2026, assets amounting to ? 1,473.19 Cr (March 31, 2025: ? 1,320.10 Cr) and liabilities amounting to ? 35.43 Cr (March 31, 2025: ? 14.98 Cr) have been included under disposal group held for transfer, comprising land, licensor/EPCM fees, construction period expenses, allocated finance cost of ? 61.75 Cr (March 31, 2025: ? 60.49 Cr) and other capital expenditure.
The Company has acquired around 663 acres of freehold land and the cost accounted towards land cost as at March 31, 2026, is ? 334.54 Cr. The land cost includes compensation towards land acquisition and rehabilitation and resettlement (R&R) expenses. The Government has revised the compensation to ? 145.57 Cr vide G.O dated 03.08.2022 for 614.34 acres allotted by the Government of Tamil Nadu based on privately negotiated rates and the entire demand has been accounted towards land cost as at the reporting date. Further, R&R expenses of ? 127.79 Cr based on demand vide GO dated 25.10.2025 have been accounted as part of Land cost under the Asset held for transfer.
The capital commitment in respect of CBRPL as at March 31, 2026 amounts to ? 2,272.01 Cr (March 31, 2025: ? 2,270.94 Cr), which is disclosed separately and does not form part of capital commitments disclosed elsewhere in the financial statements.
2 The Company operates refineries at Manali and Nagapattinam (Cauvery Basin Refinery - CBR). Operations at CBR were discontinued from 01.04.2019 due to its inability to meet BS VI norms. Accordingly, the value in use was assessed as negative and, with no recoverable value, an impairment loss was recognised.Most assets have since been dismantled and scrapped. An impairment provision of ? 91.17 Cr continues in respect of the remaining assets not yet dismantled. Residual bottoms in the crude storage tanks, which have no realisable value, are yet to be evacuated.
3 Consequent to the Cyclone Michaung in December 2023, an amount of ? 4.49 Cr was received during FY 2024-25 under the Public Liability Act policy towards relief to the local community. Further, a claim of ? 19.73 Cr under the Comprehensive General Liability insurance policy is pending settlement. The Company has lodged insurance claim of ? 13.69 Cr in respect of restoration costs relating to its Property, Plant and Equipment and stores and spares under All Risk Insurance Policy.
4 i) The Tamil Nadu Pollution Control Board (TNPCB) has passed an order in February 2025 levying environmental
compensation of ? 73.68 Cr for the environmental and socio-economic damages alleged to be caused due to the oil spill occurred during Michaung cyclone in December 2023. CPCL has contested the levy by TNPCB and interim stay has been granted by The National Green Tribunal (NGT) in March 2025 with condition to deposit/ Furnish Bank Guarantee in respect of 50 % of the portion of demand specified as environmental damage in the aforesaid order amounting to ?19.12 Cr till further proceedings. Subsequently, the company has complied with the same by submitting a Bank guarantee of ? 19.12 Cr.
(ii) Based on the orders passed by the National Green Tribunal (NGT) pursuant to suo motu proceedings, TNPCB had raised demand amounting to ? 6.24 crore towards environmental compensation which is being contested before the National Green Tribunal against a 50% deposit representing ? 3.12 Cr. The company has continued with the liability of ? 6.24 Cr in the books of accounts as on 31.03.2026.
5 The Company was awarded 20,833 energy saving certificates (ESCerts) under PAT Cycle-II (FY 2016-17 to FY 2018-19) and was further certified for 18,162 ESCerts under PAT Cycle-VI (FY 2020-21 to FY 2022-23) under the energy efficiency scheme of the Bureau of Energy Efficiency (BEE). The Company participated in ESCerts trading under PAT Cycle-II and sold 6,909 ESCerts during the notified trading sessions; the last floor price at which the Company sold ESCerts was ? 2165 per ESCert. The final issuance of ESCerts for PAT Cycle-VI is pending with the Ministry of Power.
Further, pursuant to the Ministry of Power notification dated June 28, 2023 on the Carbon Credit Trading Scheme (CCTS), ESCerts held in BEE custody may be eligible for conversion/redemption into carbon credit certificates (CCerts) at a future date; however, the conversion mechanism is yet to be notified by BEE, and accordingly, the same have not been recognised as inventory by the Company.
6 The company operates only in a single segment viz. downstream petroleum sector. As such reporting is done on a single segment basis.
Segment Reporting
The Company has "Petroleum Products" as single reportable segment Information about major customers
Company's significant revenues are derived from sales to oil marketing companies which is 95.15% and 96.47% of the Company's sales related to petroleum products for the year ending March 31,2026 & March 31,2025 respectively.
No customer (excluding oil marketing companies mentioned above) for the years ended March 31,2026 and March 31,2025 contributed 10% or more to the Company's revenue
Information about geographical areas:
The company operates solely within India, with all operations and sales confined to the domestic market and we do not own any assets other than in India . However, CPCL engages in exporting specific petroleum products such as HSD, Naphtha, and LOBS when local demand is exceeded by supply. These exports are facilitated through Indian Oil Corporation, with IOCL acting as the exporter and CPCL playing a supporting role as a manufacturer. CPCL's contribution to exports as a supporting manufacturer stands at 9.67%. for F.Y 2025-26 and 11.7% for F.Y 2024-25 of Revenue from customers
Revenue from major products
The following is an analysis of the Company's revenue from continuing operations from its major products:
7 The escalation of conflict in West Asia during March 2026 led to significant volatility in global crude and product prices due to logistical disruptions. Consequently, the Petroleum Planning and Analysis Cell (PPAC), under the Ministry of Petroleum and Natural Gas, revised the Indian Crude Basket composition vide its circular dated March 27, 2026 (effective March 1, 2026 to April 30, 2026). Accordingly, OMCs revised the Refinery Transfer Price (RTP) mechanism, aligning it with the revised Indian Crude Basket in place of the earlier product price-linked benchmarks in international markets, resulting in lower revenue realisations and a corresponding impact on profitability for FY 2025-26.
10 On November 21,2025, the Government of India notified four Labour Codes consolidating 29 existing labour laws. Based on available information and guidance issued by the Institute of Chartered Accountants of India, there is no material financial impact on the financial statements. The Company continues to monitor the finalisation of Central/State Rules and will give appropriate accounting effect, if any, based on further developments.
11 Previous year's comparative figures have been regrouped, reclassified and recast wherever necessary and the related disclosures are included in the respective notes.
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