8.1 Provisions

Provisions are recognized when the Company has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

8.2 Decommissioning Liability

Decommissioning costs are provided at the present value
of expected cost to settle the obligation using estimated
cash flows and are recognized as part of the cost of the
particular asset. The cash flows are discounted at a
current pre-tax rate that reflects the risks specific to the
decommissioning liability. The unwinding of the discount is
expensed as incurred and recognized in the Statement of
Profit and Loss as a finance cost. The estimated future cost
of decommissioning is reviewed annually and adjusted as
appropriate. Changes in the estimated future cost or in the
discount rate applied are adjusted in the cost of the asset.

8.3.1 Show-cause notices issued by various Government
Authorities are generally not considered as obligations.
When the demand notices are raised against such show
cause notices and are disputed by the Company, these are
classified as disputed obligations.

8.3.2 The treatment in respect of disputed obligations is as under:

a) a provision is recognized in respect of present
obligations where the outflow of resources is probable
as per 8.1 above.

b) all other cases are disclosed as contingent liabilities
unless the possibility of outflow of resources is remote.

8.3.3 A contingent asset is disclosed where an inflow of economic
benefits is probable.

8.3.4 Contingent liabilities/assets are disclosed on the basis of
judgment of the management/independent experts and
reviewed at each Balance Sheet date to reflect the current
management estimate.

9. Revenue

Revenue from Contracts with Customers

9.1 Revenue is recognized when control of the goods or
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 or services.

The Company has generally concluded that it is the principal
in its revenue arrangements, except a few agency services,
because it typically controls the goods or services before
transferring them to the customer.

The Company considers whether there are other promises
in the contract that are separate performance obligations to
which a portion of the transaction price needs to be allocated
(e.g., customer loyalty points). 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).

9.2 Revenue from the sale of petroleum products, petrochemical
products, Crude and gas are recognized at a point in time,
generally upon delivery of the products. The Company
recognizes revenue over time using input method (on the
basis of time elapsed) in case of non-refundable deposits
from dealers and service contracts. In case of construction
contracts, revenue and cost are recognized by measuring
the contract progress using input method by comparing the
cost incurred and total contract cost.

9.3 The Company has assumed that recovery of excise duty
flows to the Company on its own account. This is for the
reason that it is a liability of the manufacturer which forms

part of the cost of production, irrespective of whether the
goods are sold or not. Since the recovery of excise duty
flows to the Company on its own account, revenue includes
excise duty.

However, Sales Tax/ Goods and Services Tax (GST) and
Value Added Tax (VAT) is not received by the Company on
its own account. Rather, it is tax collected on value added
to the product by the seller on behalf of the government.
Accordingly, it is excluded from revenue.

9.4 Variable consideration

The Company provides volume rebates to certain customers
once the quantity of products purchased during the period
exceeds a threshold specified in the contract. Rebates are
offset against amounts payable by the customer. The volume
rebates/ cash discount give rise to variable consideration. To
estimate the variable consideration for the expected future
rebates/ cash discount, the Company applies the most likely
amount method for contracts with a single-volume threshold
and the expected value method for contracts with more than
one volume threshold. The selected method that best predicts
the amount of variable consideration is primarily driven by the
number of volume thresholds contained in the contract and
accordingly, the Company recognizes a refund liability for the
expected future rebates with suitable adjustments in revenue
from operations.

9.5 Loyalty Points

The Company operates various loyalty point schemes.
The transaction price allocated to customer loyalty points
is based on their relative estimated standalone selling
price and the same is reduced from revenue from sale
of goods. While estimating standalone selling price of
customer loyalty points, the likelihood of exercising the
option is adjusted. Wherever the Company is acting as
an agent in this arrangement, the Company recognize the
revenue on net basis.

10. Excise Duty

Excise duty is accounted on the basis of both, payments
made in respect of goods cleared and provision made for
goods lying in stock. Value of stock includes excise duty
payable / paid on finished goods, wherever applicable.

11. Taxes On Income

11.1 Current Income Tax

Provision for current tax is made as per the provisions of
the Income Tax Act, 1961. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Current income tax relating to items recognized outside
profit or loss is recognized outside profit or loss (either in
other comprehensive income or in equity). Management

periodically evaluates positions taken in the tax returns with
respect to applicable tax regulations which are subject to
interpretation and establishes provisions where appropriate.

11.2 Deferred Tax

11.2.1 Deferred tax is provided using the Balance Sheet method
on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date. Deferred tax
assets and liabilities are measured based on tax rates (and
tax laws) that have been enacted or substantively enacted
at the reporting date.

11.2.2 Deferred tax relating to items recognized outside profit
or loss is recognized outside profit or loss (either in other
comprehensive income or in equity).

12. Employee Benefits

12.1 Short Term Benefits:

Short Term Employee Benefits are accounted for in the
Statement of Profit and Loss for the period during which the
services have been rendered.

12.2 Post-Employment Benefits and Other Long Term
Employee Benefits:

a) The Company's contribution to the Provident Fund is
remitted to separate 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/CWIP Shortfall, if any, in the fund assets, based
on the Government specified minimum rate of return,
is made good by the Company and charged to the
Statement of Profit and Loss/CWIP

b) The Company operates defined benefit plans
for Gratuity, Post-Retirement Medical Benefits,
Resettlement, Felicitation Scheme and Ex-gratia. The
cost of providing such defined benefits is determined
using the projected unit credit method of actuarial
valuation made at the end of the year. Out of these
plans, Gratuity and Post-Retirement Medical Benefits
are administered through respective Trusts.

c) Obligations on other long term employee benefits
viz leave encashment and Long Service Awards are
provided using the projected unit credit method of
actuarial valuation made at the end of the year. Out of
these obligations, leave encashment obligations are
funded through qualifying insurance policies made
with insurance companies.

d) The Company also operates a defined contribution
scheme for Pension benefits for its employees
and the contribution is remitted to a separate
Trust/Corporate NPS.

12.3 Remeasurements:

Remeasurements, comprising of actuarial gains and
losses and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability),
are recognized immediately in the Balance Sheet with a
corresponding debit or credit to retained earnings through
Other Comprehensive Income (OCI) in the period in which
it occurs. Remeasurements are not reclassified to profit or
loss in subsequent periods. Remeasurements in respect of
other long-term benefits are recognized in the Statement of
Profit and Loss.

13. Grants

13.1 Grant relating to Assets (Capital Grants)

In case of grants relating to depreciable assets, the cost
of the asset is shown at gross value and grant thereon is
treated as Deferred income which are recognized as "Other
Operating Revenues" usually in the Statement of Profit
and Loss over the period and in the proportion in which
depreciation is charged.

13.2 Grant related to Income (Revenue Grants)

Revenue grants are recognized in the Statement of Profit
and Loss on a systematic basis over the periods in which
the entity recognizes as expenses the related cost for which
the grants are intended to compensate.

Subsidy and budgetary support towards under recoveries
are recognized in "Revenue from Operations” as per
schemes notified by Government from time to time, subject
to final adjustments, wherever applicable.

Revenue grants are generally recorded under "Other
Operating Revenues”, except north east excise duty
exemption which is netted off with the related expense.

13.3 When loans or similar assistance are provided by
governments or related institutions, with an interest rate
below the current applicable market rate or NIL interest
rate, the effect of this favourable interest is regarded as
a government grant. The loan or assistance is initially
recognized and measured at fair value and the government
grant is measured as the difference between the initial
carrying value of the loan and the proceeds received. The
loan is subsequently measured as per the accounting policy
applicable to financial liabilities. Classification of the grant is
made considering the terms and condition of the grant i.e.
whether grants relates to assets or otherwise.

14. Oil & Gas Exploration Activities

14.1 Pre-acquisition Cost:

Expenditure incurred before obtaining the right(s) to
explore, develop and produce oil and gas are expensed as
and when incurred.

14.2 Exploration Stage:

Acquisition cost relating to projects under exploration
are initially accounted as "Intangible Assets under
Development”. The expenses on oil and gas assets that is
classified as intangible includes acquired rights to explore
and exploratory drilling cost.

Cost of Survey and prospecting activities conducted in the
search of oil and gas are expensed as exploration cost in the
year in which these are incurred.

If the project is not viable based upon technical feasibility
and commercial viability study, then all cost relating to
Exploratory Wells are expensed in the year when determined
to be dry. If the project is proved to be viable, then all cost
relating to drilling of Exploratory Wells shall be continued to
be presented as "Intangible Assets under Development”.

14.3 Development Stage:

Acquisition cost relating to projects under development
stage are presented as "Capital Work-in-Progress”.

When a well is ready to commence commercial production,
the capitalized cost corresponding to proved developed
oil and gas reserves is reclassified as 'Completed wells/
Producing wells' from "Capital Work-in-Progress/ Intangible
Assets under Development” to the gross block of assets.
Examples of Oil and Gas assets that might be classified as
Tangible Assets include development drilling cost, piping
and pumps and producing wells.

14.4 Production Phase

Production cost include pre-well head and post-well head
expenses including depreciation and applicable operating
cost of support equipment and facilities are expensed off.

Depletion is calculated using the Unit of Production method
based upon proved and developed reserves.

14.5 Abandonment Phase

In case of development / production phase, abandonment
/ decommissioning amount is recognized at the present
value of the estimated future expenditure. Any change
in the present value of the estimated decommissioning
expenditure other than the unwinding of discount is adjusted
to the decommissioning provision and the carrying value of the
corresponding asset. The unwinding of discount on provision
is charged in the Statement of Profit and Loss as finance costs.

14.6 Impairment of E&P Assets

14.6.1 Impairment testing in case of Development and
producing assets

In case of E&P related development and producing
assets, expected future cash flows are estimated using
management's best estimate of future oil and natural gas

prices, production volumes, proved & probable reserves
volumes and discount rate. The expected future cash
flows are estimated on the basis of value in use concept.
The value in use is based on the cash flows expected to be
generated by the projected oil or gas production profiles up
to the expected dates of cessation of production of each
producing field, based on current estimates of proved and
probable reserves and on reasonable & supportable fiscal
assumptions that represent management's best estimate
of the range of economic conditions that will exist over the
remaining useful life of the asset. Management takes a
long-term view of the range of economic conditions over the
remaining useful life of the asset and, are not based on the
relatively short-term changes in the economic conditions.
However, impairment of exploration and evaluation assets
is to be done in line with para-14.6.2.

14.6.2 Impairment in case of Exploration and Evaluation assets

Exploration and Evaluation assets are tested for impairment
where an indicator for impairment exists. In such cases, while
calculating recoverable amount, in addition to the factors
mentioned in 14.6.1, management's best estimate of total
current reserves and resources are considered (including
possible and contingent reserve) after appropriately
adjusting the associated inherent risks. Impairment loss
is reversed subsequently, to the extent that conditions for
impairment are no longer present.

14.6.3 Cash Generating Unit

In case of E&P Assets, the Company generally considers a
project as cash generating unit. However, in case where the
multiple fields are using common production/transportation
facilities and are sufficiently economically interdependent
the same are considered to constitute a single Cash
Generating Unit.

14.7 The Company accounts for jointly owned oil and gas assets,
in which it is non-operator and holds only participating
interest, based on the accounting estimates and judgements
adopted by operator of the assets.

15. Current Versus Non-Current Classification

The Company uses twelve months period for determining
current and non-current classification of assets and
liabilities in the balance sheet.

16. Financial Instruments

16.1 Financial Assets

Initial recognition and measurement

All Financial Assets are recognized initially at fair value plus,
in the case of financial assets not recorded at fair value
through profit or loss, transaction cost that are attributable
to the acquisition of the Financial Asset. However, trade
receivables that do not contain a significant financing
component are measured at transaction price. Transaction

costs directly attributable to the acquisition of financial
assets measured at fair value through profit or loss are
recognized immediately in the Statement of Profit and Loss.

Subsequent measurement

For the purpose of subsequent measurement, Financial
Assets are classified in four categories:

n Financial Assets at amortised cost

n Debt Instruments at fair value through Other

Comprehensive Income (FVTOCI)

n Equity Instruments at fair value through Other

Comprehensive Income (FVTOCI)

n Financial Assets and derivatives at fair value through
profit or loss (FVTPL)

16.1.1 Financial Assets at Amortised Cost

A Financial Asset is measured at the amortised cost if both
the following conditions are met:

a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal
amount outstanding.

Financial Assets are subsequently measured at amortised
cost using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or cost that
are an integral part of the EIR. The EIR amortisation is
included in finance income in the profit or loss. The losses
arising from impairment are recognized in the profit or loss.
Apart from the same, any income or expense arising from
remeasurement of financial assets measured at amortised
cost, in accordance with Ind AS 109, is recognized in the
Statement of Profit and Loss. This category generally
applies to trade and other receivables.

16.1.2 Debt Instrument at FVTOCI

A 'Debt Instrument' is classified as at the FVTOCI if both of
the following criteria are met:

a) The objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and

b) The asset's contractual cash flows represent solely
payments of principal and interest (SPPI).

Debt Instruments included within the FVTOCI category are
measured initially as well as at each reporting date at fair
value. Fair Value movements are recognized in the Other

Comprehensive Income (OCI). However, the Company
recognizes interest income, impairment losses & reversals
and foreign exchange gain or loss in the Statement of Profit
and Loss. On derecognition of the asset, cumulative gain or
loss previously recognized in OCI is reclassified from the
Equity to the Statement of Profit and Loss. Interest earned
whilst holding FVTOCI Debt Instrument is reported as
interest income using the EIR method.

16.1.3 Equity Instrument

A. Equity Shares in Subsidiaries, Joint Ventures and
Associates at Cost

Investments in Equity Shares of Subsidiaries, Joint
Ventures and Associates are accounted for at cost in
the financial statements and the same are tested for
impairment in case of any indication of impairment.

B. Share Warrants in Joint Ventures at FVTOCI

Investments in Share Warrants of Joint Ventures are
measured at fair value and the Company has made an
irrevocable election to present subsequent changes in
the fair value in Other Comprehensive Income.

C. Equity Investments in entities other than Subsidiaries,
Joint Ventures and Associates at FVTOCI

All such equity investments are measured at fair value
and the Company has made an irrevocable election to
present subsequent changes in the fair value in Other
Comprehensive Income. There is no recycling of the
amounts from OCI to the Statement of Profit and Loss,
even on sale of investments.

D. Dividend income is recognized in the Statement of
Profit and Loss when the Company's right to receive
dividend is established.

16.1.4 Debt Instruments and Derivatives at FVTPL

FVTPL is a residual category for Debt Instruments. Any
debt instrument, which does not meet the criteria for
categorisation as at amortised cost or as FVTOCI, is
classified as at FVTPL.

This category also includes derivative financial instruments
entered into by the Company that are not designated as
hedging instruments in hedge relationships as defined by
Ind AS 109.Debt Instruments included within the FVTPL
category are measured at fair value with all changes
recognized in the Statement of Profit and Loss. Interest
income on such instruments has been presented under
interest income.

16.1.5 Impairment of Financial Assets

The Company applies Expected Credit Loss (ECL) model
for measurement and recognition of impairment loss on
the financial Assets that are measured at amortised cost
e.g., loans, debt securities, deposits, trade receivables
and bank balance.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as expense /income/ in
the Statement of Profit and Loss. In the Balance Sheet,
ECL is presented as an allowance, i.e., as an integral part
of the measurement of those assets in the Balance Sheet.
The allowance reduces the net carrying amount. Until the
asset meets write-off criteria, the Company does not reduce
impairment allowance from the gross carrying amount.

Simplified Approach

The Company follows 'simplified approach' for recognition
of impairment loss allowance on Trade Receivables. The
application of simplified approach does not require the
Company to track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

As a practical expedient, the Company uses a provision
matrix to determine impairment loss allowance on portfolio
of its trade receivables. The provision matrix is based on its
historically observed default rates over the expected life of
the trade receivables and is adjusted for forward-looking
estimates. At every reporting date, the historical observed
default rates are updated and changes in the forward¬
looking estimates are analysed. On that basis, the Company
estimates provision on trade receivables at the reporting date.

General Approach

For recognition of impairment loss on other financial assets,
the Company determines that whether there has been a
significant increase in the credit risk since initial recognition.
If credit risk has not increased significantly, 12-months ECL
is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves
such that there is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to recognizing
impairment loss allowance based on 12-months ECL.

Lifetime ECL are the expected credit losses resulting from all
possible default events over the expected life of a financial
instrument. The 12-months ECL is a portion of the lifetime
ECL which results from default events that are possible
within 12 months after the reporting date.

16.2 Financial Liabilities

16.2.1 Initial recognition and measurement

All Financial Liabilities are recognized initially at fair value
and, in the case of liabilities subsequently measured at
amortised cost, they are measured net of directly attributable
transaction cost. In case of Financial Liabilities measured at
fair value through profit or loss, transaction costs directly
attributable to the acquisition of financial liabilities are
recognized immediately in the Statement of Profit and Loss.

The Company's Financial Liabilities include trade and
other payables, loans and borrowings and derivative
financial instruments.

16.2.2 Subsequent measurement

The measurement of financial liabilities depends on their
classification, as described below:

A. Financial Liabilities at fair value through profit or loss

Financial Liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
the Statement of Profit and Loss. This category also
includes derivative financial instruments entered into by the
Company that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are
recognized in the Statement of Profit and Loss.

B. Financial Liabilities at amortised cost

Financial Liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Gains and losses are recognized in the Statement of
Profit and Loss when the liabilities are derecognized
as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or cost that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
Statement of Profit and Loss.

C. Financial Guarantee Contracts

Financial guarantee contracts issued by the Company
are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the
specified debtor fails to make the payment when due
in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognized initially
as a liability at fair value, adjusted for transaction cost
that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at
the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the
amount initially recognized less cumulative income
recognized in accordance with principles of Ind AS 115.

16.3 Derivative Instrument- Initial recognition / subsequent
measurement

Derivative financial instruments are initially recognized
at fair value on the date on which a derivative contract is
entered into and are subsequently re-measured at fair value.
The accounting for subsequent changes in fair value of
derivatives depends on the designation or non- designation
of derivative as hedging instruments. Derivatives are carried
as financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.

The Company generally designates the whole contract as hedging
instrument, and these hedges are accounted for as cash flow
hedges. At the inception of a hedge relationship, the Company
documents the hedge relationship to which the Company wishes
to apply hedge accounting, the risk management objective,
strategy for undertaking the hedge, the hedging/ economic
relationship, the hedged item or transaction, the nature of the
risk being hedged, hedge ratio and how the entity will assess the
effectiveness of changes in the hedging instrument's fair value in
offsetting the exposure to changes in the hedged item's fair value
or cash flows attributable to the hedged risk.

The effective portion of changes in the fair value of these
derivatives is recognized in Other Comprehensive Income
and accumulated under the heading Cash Flow Hedge
Reserve within Equity. The fair value changes relating to
the ineffective portion is recognized immediately in the
Statement of Profit and Loss. Amounts previously recognized
in OCI and accumulated in equity relating to effective portion
are reclassified to Statement of Profit and Loss in the periods
when the hedged item affects profit or loss, in the same
line item as the recognized hedged item or treated as basis
adjustment if a hedged forecast transaction subsequently
results in the recognition of a non-financial asset or non¬
financial liability. When a forecasted transaction is no longer
expected to occur, the cumulative gain or loss accumulated
in equity is transferred to the Statement of Profit and Loss.

16.3.2 Derivatives that are not designated as Hedge Instrument

The Company enters into certain derivative contracts to
hedge risks which are not designated as hedges. Such
contracts are accounted for at fair value through the
Statement of Profit and Loss and are included in the Other
Income or Other Expenses as Gain on Derivatives or Loss on
Derivatives respectively.

17. Cash and Cash Equivalents

Cash and Cash Equivalents in the Balance Sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject
to an insignificant risk of changes in value. Bank overdraft
(negative balance in Account) is shown under short term
borrowings under Financial Liabilities & Positive balance in
that account is shown in Cash & Cash Equivalents.

18. Treasury Shares

Pursuant to the Scheme of Amalgamation, IOC Shares
Trust has been set up by IOCL for holding treasury shares
in relation to IBP and BRPL mergers. The shares held by IOC
Shares Trust are treated as treasury shares.

Own equity instruments that are reacquired (treasury
shares) are recognized at cost and deducted from equity.
No gain or loss is recognized in the Statement of Profit

and Loss on the purchase, sale, issue or cancellation of the
Company's own equity instruments.

III. NEW STANDARDS/ AMENDMENTS AND
OTHER CHANGES EFFECTIVE APRIL 1,2024 OR
THEREAFTER

Ministry of Corporate Affairs through its notification amends
Companies (Indian Accounting Standards) Rules, 2015 to
notify new standards or amend the existing standards and
the such notifications during the Financial Year 2024-25
are as follows:

n Vide Notification G.S.R. 492 (E) dated 12^th August
2024, in which Ind AS 104 on Insurance Contract was
omitted and the new Indian Accounting Standard (Ind
AS) 117 on Insurance Contracts has been notified.
Insurance contract is defined by the Ind AS 117
as "A contract under which one party (the issuer)
accepts significant insurance risk from another party
(the policyholder) by agreeing to compensate the
policyholder if a specified uncertain future event (the
insured event) adversely affects the policyholder.”. The
Company does not have any contract falling under the
definition of Insurance contract and hence impact of
the new Ind AS is not material.

n Vide Notification G.S.R. 554(E) dated 9^th September 2024,
amendments have been made in Indian Accounting
Standard (Ind AS) 116 on Leases with reference to the
Sale and Lease back transactions. These transactions
are where an entity (the seller-lessee) transfers an asset
to another entity (the buyer-lessor) and leases that
asset back from the buyer-lessor. The Company does
not have any contract falling under the category of Sale
and Lease back transactions and hence the impact of
the amendment is not material.

n Vide Notification G.S.R. 602(E) dated 28^th September
2024, amendments have been made to enable
insurer or insurance company to provide its financial
statement as per Ind AS 104 for the purposes of
consolidated financial statements by its parent or
investor or venturer till the Insurance Regulatory and
Development Authority notifies the Ind AS 117 and to
revive Ind AS 104 for this purpose.

As the Company is not an insurer or and insurance
company the amendment does not have any
material impact.

IV. NEW STANDARDS/ AMENDMENTS ISSUED BUT
NOT YET EFFECTIVE

Ministry of Corporate Affairs through its notification amends
Companies (Indian Accounting Standards) Rules, 2015
to notify new standards or amend the existing standards.
During the year no new standard or modification in existing
standard has been notified which will be applicable from
April 1, 2025, or thereafter.

The preparation of the Company's financial statements requires
management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. These include recognition
and measurement of financial instruments, estimates of useful
lives and residual value of Property, Plant and Equipment and
Intangible Assets, valuation of inventories, measurement of
recoverable amounts of cash-generating units, measurement of
employee benefits, actuarial assumptions, provisions etc.

Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods.
The Company continually evaluates these estimates and
assumptions based on the most recently available information.
Revisions to accounting estimates are recognized prospectively
in the Statement of Profit and Loss in the period in which the
estimates are revised and in any future periods affected.

A. JUDGEMENTS

In the process of applying the Company's accounting
policies, management has made the following judgements,
which have the significant effect on the amounts recognised
in the financial statements:

Materiality

Ind AS requires assessment of materiality by the Company
for accounting and disclosure of various transactions in the
financial statements. Accordingly, the Company assesses
materiality limits for various items for accounting and
disclosures and follows on a consistent basis. Overall
materiality is also assessed based on various financial
parameters such as Gross Block of assets, Net Block of
Assets, Total Assets, Revenue and Profit Before Tax. The
materiality limits are reviewed and approved by the Board.

Intangible Asset under Development

Acquisition costs and drilling of exploratory well costs are
capitalized as intangible asset under development and are
reviewed at each reporting date to confirm that exploration
drilling is still under way or work has been determined /
under way to determine that the discovery is economically
viable based on a range of technical & commercial
considerations and for establishing development plans
and timing, sufficient / reasonable progress is being made.
If no future activity is planned on reasonable grounds
/ timeframes, Intangible asset under development and
property acquisition costs is written off. Upon start of
production from field and recognition of proved reserves,
cost carried as intangible asset under development is
transferred to producing properties. Also refer Note-34 for
related disclosures.

Contingencies

Contingent liabilities may arise from the ordinary course
of business in relation to claims against the Company,
including legal, contractor, land access and other claims.
By their nature, contingencies will be resolved only when
one or more uncertain future events occur or fail to occur.
The assessment of the existence, and potential quantum, of
contingencies inherently involves the exercise of significant
judgement and the use of estimates regarding the outcome
of future events.

B. ESTIMATES AND ASSUMPTIONS

The key assumptions concerning the future and other key
sources of estimation at the reporting date, that have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year, are described below.

Existing circumstances and assumptions about future
developments, however, may change due to market changes
or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the assumptions
when they occur.

Defined benefit plans/ Other Long term employee
benefits

The cost of the defined benefit plans and other long term
employee benefit plans are determined using actuarial
valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in
the future. These include the determination of the discount
rate, future salary increases and mortality rates. Due to
the complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are
reviewed at each reporting date.

The parameter most subject to change is the discount
rate. The management considers the interest rates of
government securities based on expected settlement period
of various plans.

Further details about various employee benefit obligations
are given in Note 35.

Fair value measurement of financial instruments

When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value
is measured using valuation techniques including the
Discounted Cash Flow (DCF) model based on level-2 and
level-3 inputs. The inputs to these models are taken from
observable markets where possible, but where this is not

feasible, a degree of judgement is required in establishing fair
values. Judgements include considerations of inputs such
as price estimates, volume estimates, rate estimates etc.
Changes in assumptions about these factors could affect the
reported fair value of financial instruments. Also refer Note 39
for further disclosures of estimates and assumptions.

Impairment of Financial Assets

The impairment provisions for trade receivables are made
considering simplified approach based on assumptions
about risk of default and expected loss rates. The Company
uses judgement in making these assumptions and selecting
the inputs to the impairment calculation based on the
Company's past history and other factors at the end of
each reporting period. In case of other financial assets,

the Company applies general approach for recognition of
impairment losses wherein the Company uses judgement in
considering the probability of default upon initial recognition
and whether there has been a significant increase in credit
risk on an ongoing basis throughout each reporting period.
Also refer Note-40 for impairment analysis and provision.

Income Taxes

The Company uses estimates and judgements based on the
relevant facts, circumstances, present and past experience,
rulings, and new pronouncements while determining the
provision for income tax. A deferred tax asset is recognised
to the extent that it is probable that future taxable profit
will be available against which the deductible temporary
differences and tax losses can be utilised.

NOTE - 2: PROPERTY, PLANT AND EQUIPMENT (Contd..)

A. i) Freehold Land includes H1.61 crore (2024: 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 (2024: H0.01 crore) towards 1605 (2024: 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 H6207.6 crore (2024: H6699.32
crore) and net block amounting to H3420.8 crore (2024: H3538.55 crore).

C. Depreciation and amortisation for the year includes H96.42 crore (2024: H81.37 crore) relating to construction period expenses
shown in 'Note - 2.2'

D. Land and Buildings (Including ROU Asset) includes Gross Carrying Value of H508.61 crore (2024: H933.03 crore) in respect of which
Title/ Lease Deeds are pending for execution or renewal. (Refer Note - 48)

E. Impairment assessment has been carried out at period end by comparing the recoverable amount with the carrying value of assets
under respective CGUs, as per Ind AS 36. Given the uncertainity over realisation of electricity tariffs and variations in Capacity
Utilization Factor of some windmill assets, impairment loss of H68.17 crore (2024: NIL) and impairment reversal of H2.10 crore
(2024: NIL) has been recognized, based on its value in use computed considering a discounting rate of 9.80%.

F. During the year, Useful life of DEF Plant has been reviewed and changed from 25 years to 15 years. The impact on account of this

change is increase in depreciation charge by H5.66 crore in FY 2024-25 which will be offset over future periods in the Statement
of Profit & Loss.

G. During the year, Useful life of Optical Fibre Cable have been reviewed and changed from 13 years to 18 years. The impact on

account of this change is reduction in depreciation charge by H11.91 crore in FY 2024-25 which will be offset over future periods
in the Statement of Profit & Loss.

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

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).

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 Reserve

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

D. 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. Amount of H5.59 crore (2024: H6.25 crore)
has been utilised for recoupment of uninsured losses.

E. 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.

F. 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.

G. 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.

Note : During the current year, Block BK-CBM-2001/1 commenced the production of gas. Indian Oil has the participating interest of
20.00% in the block.

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 H23.95 crore (2024: H25.68 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 H412.08 crore (2024: H420.32 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).

NOTE - 35: EMPLOYEE BENEFITS (Contd..)

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.

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 3^rd 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.

D. The summarised position of various Defined Benefit Plans recognised in the Statement of Profit & Loss, Balance Sheet and
Other Comprehensive Income are as under

(Figures given in Unbold & Italic Font in the table are for previous year)

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. Various arrangements on BOO/BOOT basis for Tankages facility, Water Intake facility, Quality Control Lab, Plants for supply
of utility gases at Refineries for periods ranging from 10-25 years. In case of BOOT contracts, Lessor will transfer ownership
to IOCL at the end of contract period at Nil/Nominal value.

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

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 recognised 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 4 nos. of lease agreements on BOO/ BOOT basis for Tankages facility and supply of
utilities at multiple refineries for a period ranging from 15-20 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 19.70 crore to MSRDC for land for Retail outlets at Aurangabad
and Mumbai for the period of 30 years. The land is yet to be handed over to Company and therefore the amount is lying
as Capital Advance and shall form part of ROU Assets once lease is commenced.

3. 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 1,200-1,650/month and for 1 vendor H 2,450/month. As
at March 31,2025, 4,111 no's are yet to be supplied. However, the same are low value items.

4. 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 20,000/- with an increment of 10% in every 3 years. The
possession of land is not given and the matter is pending in the court.

5. 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 31,2025, total 19,039 Nos
are yet to be installed. However, payment is in the nature of variable lease payment.

6. 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, 2025 a total of 14,020 nos. of VTS are yet to be
installed. However, payment is in the nature of variable lease payment.

7. The Company has entered into lease agreement with M/s Seven Islands Shipping Ltd for hiring time charter vessels for
a period of 2 years to be commenced from the month of Apr'2025.

8. 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 H 2,113/-. Out of selected RO's, commissioning is pending in 1,103 RO's. However, payment is in the
nature of variable lease payment.

B. Contingent Liabilities

B.1 Claims against the Company not acknowledged as debt

Claims against the Company not acknowledged as debt amounting to H11,320.47 crore (2024: H8,441.23 crore) are as under:

B.1.1 H785.72 crore (2024: H137.41 crore) being the demands raised by the Central Excise /Customs/ Service Tax/ GST Authorities
including interest of H541.83 crore (2024: H62.69 crore).

B.1.2 H39.84 crore (2024: H39.84 crore) in respect of demands for Entry Tax from State Governments including interest of H9.44
crore (2024: H9.44 crore).

B.1.3 H756.89 crore (2024: H810.97 crore) being the demands raised by the VAT/ Sales Tax Authorities including interest of H265.89
crore (2024: H268.93 crore).

B.1.4 H1,131. 11 crore (2024: H2,568.91 crore) in respect of Income Tax demands including interest of H109.38 crore
(2024: H212.00 crore).

B.1.5 H8,386.00 crore (2024: H4,716.60 crore) including H4,072.39 crore (2024: H3,978.83 crore) on account of Projects for which suits
have been filed in the Courts or cases are lying with Arbitrator. This includes interest of H1,052.73 crore (2024: H188.67 crore).

B.1.6 H220.91 crore (2024: H167.50 crore) in respect of other claims including interest of H44.74 crore (2024: H74.88 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 3,924.76 million. The estimated amount of
such obligation (net of amount paid) as on 31^st March 2025 is INR 2,818.95 crore - CAD 472.50 million (2024: INR 3,367.22
crore - CAD 549.49 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 31^st March 2025 is H3,131.40 crore - USD 366.33 million
(2024: H3,055.57 crore - USD 366.33 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. On 31^st March, 2025,
the Company's share of such obligation is estimated at H3,472.15 crore (2024: H3,472.15 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 149.94 Million. The estimated amount of such obligation (net of amount paid) is H564.08 crore
- USD 65.99 million (2024: H144.30 crore - USD 17.30 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 31.03.2025, Company has contingent liability of H1,452.03 crore (2024: H967.81 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 H4,356.09 crore (2024: H2,903.43 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 H41,684.17 crore

(2024: H61,085.44 crore) inclusive of taxes.

Notes :

1) This does not include the impact of provision made on actuarial valuation of retirement benefit/ long term Schemes and
provision made during the period towards Post Retirement Benefits as the same are not separately ascertainable for
individual directors.

2) There were no Share Based Employee Benefits given to KMPs during the period.

3) In addition, whole-time Directors are also allowed the use of Corporation's car for private purposes up to 12,000 kms. per
annum on a payment of ?2,000/- per mensem.

4) Remuneration and Loan balances for KMP is reported for the period of tenure as KMP

5) Relatives of Key Managerial Personnel and nature of relation with whom transactions are undertaken during the year:

1) Shri Siddharth Shrikant Vaidya (Assistant Manager (Production), Indian Oil Corporation Limited): Son of Shri S M Vaidya who
was Key Managerial Personnel up to 31.08.2024.

2) Shri Vinayak Shrikant Vaidya (Production Engineer, Indian Oil Corporation Limited): Son of Shri S M Vaidya who was Key
Managerial Personnel up to 31.08.2024

NOTE - 39: FAIR VALUE MEASUREMENT (Contd..)

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: 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 instruments have been estimated using Market
Approach or Income Approach of valuation techniques with the help of external valuer. Valuation as per Market Approach
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. Valuation as per Income Approach technique is determined by discounting future cash
flows to present value using a discount rate. These valuation requires management to use unobservable inputs in the
model, of which the significant unobservable inputs are disclosed in the tables below.

(ii) Non Convertible Redeemable Preference Shares: Fair value of Preference shares 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.

(iii) PMUY Loan: Fair value of PMUY loans is estimated by discounting future cash flows using approximate interest rates
applicable on loans given by Banks duly adjusted for significant use of unobservable inputs in estimating the cash flows
comprising of specific qualitative and quantitative factors like consumption pattern, assumption of subsidy rate etc.

The significant unobservable inputs used in fair value assessment categorised within Level 3 of the Fair Value Hierarchy

together with a quantitative sensitivity analysis as on March 31,2025 and March 31,2024 are shown below:

II. Disclosures relating to recognition of differences between the fair value at initial recognition and the transaction price

In the following cases, the Company has not recognised gains/losses in profit or loss on initial recognition of financial assets/
financial liability, instead, such gains/losses are deferred and recognised as per the accounting policy mentioned below.

Financial Assets

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 recognised 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 1^st 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 amortised over the loan period 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.

NOTE - 40: FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd..)

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 31,2025 and March 31,2024.

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, 2025
approximately 37% of the Company's borrowings are at a fixed rate of interest (March 31,2024: 39%).

Pursuant to phasing out of USD LIBOR benchmark, the last date of its publication was 30^th June 2023. Meanwhile, the
Company has completed the transition exercise of the existing USD LIBOR linked instruments to alternate benchmark.

The sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, with all
other variables held constant, on floating rate borrowings is as follows:

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 2,634.68 crore as at March 31,2025 (March 31,2024: H 1,810.72 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.

I. 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.

4. Equity Price Risk

The Company's investment in listed and non-listed equity securities, other than its investments in Joint Ventures/ Associates
and Subsidiaries, are susceptible to market price risk arising from uncertainties about future values of the investment securities.

At the reporting date, the exposure to unlisted equity securities at fair value was H5,274.23 crore. Sensitivity analysis of these
investments have been provided in Note 39.

The exposure to listed equity securities valued at fair value was H30,408.71 crore. An increase/ decrease of 5% in the share
price could have an impact of approximately H1,520.44 crore on the OCI and equity attributable to the Company. These
changes would not have an effect on profit or loss.

(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.

NOTE - 40: FINANCIAL INSTRUMENTS AND RISK FACTORS (Contd..)

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:

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

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

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

n 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 31,2025 and March 31,2024
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 1^st 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 categorised 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 @70%
(2024: @70%) in case of time gap since last refill is more than 6 months but not exceeding 12 months, @ 80% (2024: @ 80%) in case
of time gap since last refill is more than 12 months but not exceeding 18 months, @ 90% (2024: @ 90%) in case of time gap is more
than 18 months but not exceeding 24 months and @ 100% (2024: @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 6 months (2024: 6 months) based on experience ratio
of more than 6 months (2024: 6 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 (2024: 24 months).

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 under 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 33.03 crore (2024: H 93.80 crore) and subsidies on sales of LPG
(Domestic) to customers in Bhutan amounting to H 15.39 crore (2024: H 5.80 crore) have been reckoned as per the schemes
notified by Governments.

2 Export of Notified Goods under MEIS Claims/RoDTEP/Duty Drawback scheme

The Company has recognised H 31.01 crore (2024: H 37.62 crore) on export of notified goods under Merchandise Exports from
India Scheme (MEIS)/ Remission of Duties and Taxes on Exported Products (RoDTEP)/Duty Drawback 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 0.31 crore (2024: H 7.93 crore) as Revenue Grant.

4 Grant in respect of revenue expenditure for research projects

During the year, the Company has received revenue grant of NIL (2024: H 0.47 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

The 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 0.01 crore during the current year
(2024: H 1.46 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 3,885.58 crore (2024: H 3,816.73 crore).

7 Viability Gap Funding (VGF)

The Company has received grant in the form of interest free loans from Odisha Government for a period of 15 years.The
unamortized grant amount as at March 31, 2025 is H 3,100.61 crore (2024: H 2,901.21 crore). During the year, the Company has
recognised H 273.26 crore (2024: H 241.15 crore) in the Statement of Profit and Loss as amortisation of grants.

8 Post Export EPCG Grant

Post Export EPCG grants are received in respect of Import duties paid on procurement of capital goods under Post Export EPCG
Scheme of Central Govt. which allows refund of Basic custom duty in the form of duty scripts upon fulfilment of an export obligation.
During the year, the Company has recognized H 1.84 crore (2024: Nil) as Revenue Grant in the Statement of Profit & Loss.

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 31,2025 is H 0.20 crore (2024: H 0.31 crore). During the year,
the Company has recognised H 0.11 crore (2024: H 0.15 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 31,2025 is H 38.81 crore (2024: H 49.48 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 10.67 crore (2024: H 11.92 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 18.07.2022 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, 2025 is H 66.68 crore (2024: H 7.64 crore). During
the year, the Company has recognised H 32.67 crore (2024: H 1.75 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, 2025 is H 84.22 crore (2024:
H 89.55 crore). During the year, the Company has recognised H 5.33 crore (2024: 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, 2025 is H 308.93 crore (2024: H 305.42 crore). During
the year, the Company has recognised H 11.50 crore (2024: H 6.50 crore) 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 31,2025 is H 53.85 crore (2024: H 57.57 crore). During the year,
the Company has recognised H 3.72 crore (2024: H 3.72 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 31,2025 is H 9.78 crore (2024: H 10.30 crore). During the year, the Company has recognised H 0.52 crore (2024:
H 0.52 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 31,2025 is H 3.19 crore
(2024: H 3.38 crore). During the year, the Company has recognised H 0.19 crore (2024: 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 1.48 crore (2024: H 1.14 crore) in
Statement of Profit & Loss. The unamortized balance is H 15.46 crore (2024: H 13.29 crore)

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

The Company had received grant from Ministry of Heavy Industries (MHI) for establishing and upgradation/deployment of 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 389.27 crore, H 272.49 crore was received in advance and balance amount will
be received on commissioning of all EVCS. Since the work has not completed as on 31.03.2025, no amount is recognised in the
statement of Profit and loss during the year. The unamortized balance as at March 31, 2025 is H 389.17 crore (2024: H 389.28
crore). During the year, the Company has recognised H 0.11 crore (2024: Nil) in the Statement of Profit and Loss as amortisation of
capital grants.

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 overtime using input based on cost incurred. Similarly non-refundable deposits received from Retail Outlets (ROs) are
recognized as revenue over time on proportionate basis.

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 1^st 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 outstanding as at 31^st March 2025 towards PMUY Cash Assistance claim from Central Government is H62.74 crore
(2024: H279.69 crore) and loan to PMUY consumers is H2,180.76 crore (2024: H2,367.12 crore) (net of recovery through subsidy).
Against the above loan, a provision for doubtful loans amounting to H1,226.99 crore (H1,159.40 crore) has been created as at 31^st
March 2025 against the beneficiaries who have not taken any refill for more than 6 months based on expected credit loss (ECL)
model and applying experience factor based on experience ratio of doubtful provision on more than 6 months to the loans in less
than 6 months 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 addition in PMUY loans by H107.24 crore (2024: Addition by H336.61 crore) which has
been accounted in Statement of Profit and Loss in Note -24 under the head "Other Income".

2 During the current financial year, the Company has reversed Provision created in the earlier years to the tune of ?1,838.02 crore
(comprising VAT ITC amount of ?1,203.72 crore and interest amount of ?634.30 crore), consequent to the favourable orders from
Hon'ble Supreme Court and Gujarat VAT Tribunal on the subject of VAT Input Tax Credit under Gujarat VAT Act 2005. Accordingly,
the pre-deposit has been reclassified from "Deposits” (Note-18) to "Claims Recoverable” (Note-8). The reversal of provision has
been treated as "Exceptional Item” considering its nature and size.

3 The Principal Controller of Defence Accounts (PCDA) and Indian Air Force have deducted H621.25 crore and H68.78 crore
respectively from the regular supplies on account of the price differential on supplies made between January 2022 to March 2023.
The Company has been contesting this claim directly and also through the Ministry of Petroleum and Natural Gas (MoPNG). Hence
the same has been shown under disputed trade receivables considered good (Note-10). The matter is still under deliberation, and
the financial impact, if any, will be addressed once the issue is resolved.

4 Purchase of crude oil from some 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.

5 "The Retired Officers Welfare Society consisting of employees retired from the Company and other individual retired employees
filed a writ petition in Delhi High Court in the year 2017 that the manner in which the Self Contributory pension scheme titled
as Superannuation Benefits Fund on defined benefit basis, setup in the year 1987, has been retrospectively terminated in the
year 2011, with effect from 01.01.2007, by the Company is arbitrary. In April 2025, the Hon'ble Delhi High Court passed an order
directing that the monthly pension of petitioners be re-fixed under a Defined Benefit Scheme and the arrears be paid along with
interest. Impact of the Court order is not ascertainable in view of the varied possible scenarios.

Based on external legal opinion, prima-facie the Company is not responsible for the self-contributory & self-sustaining scheme
prepared, managed and run by a separate independent and legal entity being the Trust. The Company is in the process of filing an
appeal along with the stay application against the said order. The management is confident that no liability shall devolve on the
Company and hence no provision is required.

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

7 Figures of the previous year have been regrouped wherever necessary, to conform to current period presentation, Major item
regrouped is as under:

- For and on Behalf of Board of Directors -

Sd/- Sd/- Sd/-

A S Sahney Anuj Jain Kamal Kumar Gwalani

Chairman Director (Finance) Company Secretary

DIN-10652030 DIN-10310088 ACS-13737

As per our attached Report of even date

For KHANDELWAL JAIN & CO For K G SOMANI & CO LLP For MKPS & ASSOCIATES LLP For KOMANDOOR & CO LLP

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

Firm Regn. No. 105049W Firm Regn. No. 006591N/ Firm Regn. No. 302014E/ Firm Regn. No. 001420S/

N500377 W101061 S200034

Sd/- Sd/- Sd/- Sd/-

Naveen Jain Amber Jaiswal Narendra Khandal Nagendranadh Tadikonda

Partner Partner Partner Partner

M. No. 511596 M. No. 550715 M. No. 065025 M. No. 226246

Place: New Delhi
Dated: 30^th April 2025