Indian Oil Corporation Ltd
Chairman Speech
Dear Shareowners,
This is my first communication to you after taking over as Chairman on
1st June, 2017, and I consider it a privilege to share my thoughts with you through this
forum. I do acknowledge that it is a great honour to lead IndianOil, which has been
serving the nationwithdistinction decades now.
IndianOil's corporate vision of being ‘The Energy of India'
and becoming ‘A globally admired company' and its core values of Care,
Innovation, Passion and Trust differentiate it from the other corporates. Each
of its business verticals remains committ to respective core competencies, making strongly
IndianOil a strong player across the hydrocarbon value chain.
With a workforce encompassing varied age groups and represents a
perfect blend of youth and experience. This creates an environment highly conducive to
innovative ideas, technologies, high-quality products & services, and safe &
efficient operations while enhancing stakeholder value on a sustained basis. Such a
positive environment is conducive to making the Company future-ready.
Global Trends
In 2016, the global economy witnessed a slowdown in growth, slipping to
3.1 per cent from 3.4 per cent recorded in 2015. While growth in the advanced economies
slipped from 2.1 per cent in 2015 to 1.7 per cent in 2016, it slid marginally from 4.2 per
cent to 4.1 per cent in emerging economies. Global GDP growth is projected at 3.4 per cent
in 2017 and 3.6 per cent in 2018.
In 2016, global primary energy consumption increased only by 1 per cent
on a year-on-year basis compared to a 10-year average of 1.8 per cent. While oil and
natural gas consumption grew by 1.6 per cent and 1.5 per cent respectively, renewable
energy (including biofuels) grew at a robust 12 per cent. The global oil demand rose to
96.8 mbpd (million barrels per day) in 2016-17 as compared to 95.3 mbpd in 2015-16. With
increase in demand and restrictions on output growth by the producers, the surplus in the
global oil markets fell from 1.5 mbpd in the year 2015-16 to 0.12 mbpd in 2016-17. Crude
oil (Brent) prices averaged at $48.62/bbl in 2016-17, only slightly higher than the
average of $47.26/bbl in 2015-16; the prices have been moving up further in 2017-18 and
are projected to remain in a reasonable range around $55/bbl. IndianOil, being a
downstream major, is benefiting from this range-bound price. It is also helping us in
being more bullish towards future expansion plans, which are essential for the
Company's growth. The OPEC countries and the United States have for long had a major
say in the oil & gas sector, but other regions like Latin
America and Africa too are likely to emerge as key players in the
coming years. A shift in demand in favour of low-carbon fuels and slower energy demand
growth underpinned by energyefficiency gains were the two clear trends that emerged during
the year.
Alternative cost-competitiveness against conventionaloptions.Again,
fall in costs is being driven by technological advancements and the scale of deployment.
Though hydro and geothermal energy are competitive even today, renewables like solar PV
and wind-power with cost reductions and 10-25 per cent respectively, are coming to the
fore. It is being estimated that, by the year 2040, more than 50 per cent of
renewables-based power generation may not require subsidy support to become competitive.
The transportationsector is the largest oil consumer today, accountingfor 57 per cent of
the global oil demand. Renewables contribute to the sector directly through bio-fuels and
indirectly through electricity generation. Though the number of electric vehicles (EV) is
expected to increase manifold in the coming years, the transport sector is likely to be
dominated by conventional fuels for many years to come. Though several industry experts
are predictingthat liquid fuels would take a back seat soon, this soon may be a bit far,
particularlyin the Indian context. In fact, with continuously increasing demand for both
oil and gas, India needs to handle this transition in an efficient and organised manner.
Domestic Trends
India is one of the fastest growing major economies in the world today.
Its GDP growth, however, slid to 7.1 per cent in 2016-17 from 8 per cent in the previous
year, with the Government's demonetisation exercise in November 2016 impacting growth
has shown improvement in the current fiscal and is expected to improve further, following
the successful introduction of the Goods & Services Tax (GST) from 1st July, 2017 and
the forecast of a good monsoon.
India is now the third largest consumer of petroleum products in the
world, next only to USA and China. With its robust economic growth leading to increasing
demand for energy, consumption of petroleum products rose to 194 million tonnes in 2016-17
from 185 million tonnes in 2015-16, registering a growth of 5.2 per cent. Among major
products, there was a perceptible slowdown in growth of petrol and diesel as compared to
the previous year, while growth in consumption of LPG and ATF improved to 9.8 per cent and
12.1 per cent respectively.
The domestic crude oil production 36 million tonnes in 2016-17 as
fallingproductionand under-performance of many fields continued.
213 million tonnes registered 5.2 per cent growth in terms, with
product imports too registering a 22% growth. With positive changes in exploration policy
by the Government, domestic production
India's natural gas consumption rose by 7 per cent during 2016-17
and LNG imports by 16 per cent as compared to
in New Delhi.
the previous year. With steady growth in domestic demand, refinery
throughput rose by 5.4 per cent to 245 MMT during the year.
The Government of India has upscaled the target for renewable power
capacity to 175 GW, which includes 100 GW from solar energy, 60 GW from wind-power, 10 GW
from bio-power and 5 GW from small hydro-power to be achievedbytheyear2022.Indiaisoneofthe
markets where solar PV (utility) and onshore wind-power may become competitive by around
2020. A vibrant economy and a large domestic market, coupled an emerging withhealthygrowth
global energy hub. Inspired by the holistic energy vision of our Hon'ble Prime
Minister, the Ministry of Petroleum & Natural Gas is leveraging the combined strengths
of oil & gas sector enterprises by reforming and restructuring all segments for better
overall performance.
The Government of India targets to reduce dependence on imported oil by
10 per cent by the year 2021-22 by increasing domestic productionof oil & gas,
promoting energy efficiency, conservation, utilisationof bio-fuels andincreased
other alternative fuels and renewables. Accordingly, the significant potential of the
sector is being explored through a new policy appropriately titled HELP (Hydrocarbon
Exploration Licencing Policy) that promises a uniform licence regime. Together with
bidding for small discovered fields and marginal fields policy, this is expected to
augment availability of domestic oil & gas In the midstream segment, a gas-based
economy is being promoted by incentivising domestic production infrastructure on a mega
scale in the form of LNG import terminals, pipeline networks and city gas distribution
transnational, projects. Gas currently accounts for 6.5 per cent of India's energy
mix and the Government plans to raise its share to 15 per cent by the year 2030.
Considering this, new LNG import terminals coming up in the next 7-8 years will raise the
combined capacity to over 50 million metric tonnes per annum (MMTPA) while the natural gas
transmission pipeline network is being expanded from 16,100 km currently to about 30,500
km by the year 2020. In the downstream sector, India is all set to emerge as a global
refining hub through multiple brownfield and greenfield capacity expansion projects.
India's current refining capacity is 234.50 MMTPA, making it the second largest
refining in Asia. The proposed 60 MMTPA west coast refinery would enable India further
influence the ever-changing market dynamics in the global oil industry, with better
bargaining power as a major oil buyer.
Leveraging low international crude oil prices, the Government of India
and the PSU oil marketing companies have undertaken major initiatives to make energy
accessible and affordable across socio-economic divides. LPG as a cooking fuel is being
mainstreamed all over the country through the Pradhan Mantri
Ujjwala Yojana. With a target to release 5 crore deposit-free LPG
connections to poor households by the year 2019, over all pipeline 2.2 crore connections
were issued during the year, raising LPG usage across markets to above 70 per cent.
In line with the growing demand, the marketing and distribution
infrastructure for petroleum products is being expanded and modernised in a big way. Fuel
stations are getting a comprehensive makeover aimed at enhancing customer convenience and
service.
In his inspiring inaugural address at the 12th PETROTECH Conference in
Delhi in December 2016, the Hon'ble Prime Minister urged the Indian oil & gas
enterprises to aim at becoming multinational energy majors. This would not only boost
investments but create infrastructure and efficiencies in the system to effectively cater
to the energy needs of a humungous and diverse customer base that is expanding year after
year. The task is not easy. Every segment of the oil & gas industry has to first find
ways to cope with a continuously that would throw up opportunities measure. At the same
time, revolutionary policy changes, growing indigenous technological prowess and an
enabling work environment would ensure that India remains the ‘bright spot.' .
IndianOil Performance A Reassuring Present
From humble beginnings in the year 1959, IndianOil attained the status
of an elite Navratna company by 1997 and became (CGD) India's largest
commercial enterprise in 1999. Then came thevisionofbecoming‘amajor, integrated
energy company' with ambitious forays into petrochemicals, gas marketing and E&P.
In 2009, a year before earning the status of Maharatna, IndianOil redefined its
vision to be ‘The Energy of India' and to become ‘A globally admired
company,' determined to transform from an oil company into a diversified energy
IndianOil's growth trajectory has been on an upswing in the recent past. The Company
earned a record profit of` 11,242 crore in 2015-16, only to better it with the highest
ever profit of` 19,106 crore in 2016-17, thereby becoming the hub country's most
profitable public sector enterprise. The Company's net worth is close to ` 1 lakh
crore. The IndianOil share was included in the prestigious Nifty50 stock index of the
National Stock Exchange from 31st March 2017. The Company's share price more than
doubled from a low of ` 195 (bonus-adjusted price) as on 1st April 2016 to ` 450 as on
16th May 2017, and the market capitalisation record high of ` 2,18,831 crore on 16th May
2017. The year 2016-17 was a landmark year for IndianOil refineries as they led the
industry's enormous efforts that culminated in extending the supply of cleaner BS-IV
grade transportation fuels right across the country by 1st April, 2017, which involved
major refinery upgrades, changes in supply logistics and other related transitions. st
aimed at timely implementation of the fir In another Government of India target of
switchover to BS-VI fuels across the country by 1st April, 2020, IndianOil's Mathura
Refinery became the first refinery in the country to produce BS-VI compliant petrol and
diesel and supply the same to automobile manufacturers for their initial The IndianOil
Board approved some significant refinery projects during the year; these include revamp of
old units and installation of new units for production BS-VI fuels in various refineries
at an expenditure of` 15,400 crore; expansion of Barauni Refinery from 6 to 9 MMTPA; and
capacity expansion of thePX/PTA(Paraxylene/Purified Terephthalic Acid) unit at Panipat
Refinery. The operations at Paradip 2016, were progressively ramped up during the year and
its capacity utilisation has now reached design level. Together with associated marketing
and distributioninfrastructure, this helped further consolidate the Company's
operations in the East. In fact, the improvement in the critical operational
parametersofIndianOilrefineriesyear after year has been a significant contributor to the
Company's profitability. The Company derives a huge competitive advantage from its
extensive pipelines network in reaching out to new markets and customers in a safe,
cost-effective and eco-friendly way. Right from conceptualisation to commissioning, all
pipeline projects are being implemented in-house. With the commissioning of 1,102 km of
pipeline sections during the year, the network expanded to 12,848 km, with the capacity of
the liquid pipelines network at 93.7 MMTPA and that of the gas pipelines at 9.5 MMSCMD
(million metric standard cubic metres per day).
Today, as a new India emerges, IndianOil is energising all key sectors
of the economy with its products and services, reaching out to the remotest corners
through over 46,500 customer touch-points spread across the country. These are seamlessly
backed by a highly efficient network of supply locations.
As IndianOil's fuel stations network expands year after year, the
contribution ofKisan Seva Kendra outlets to overall sales has been going up
steadily, which is a clear pointer to the high potential of rural markets. In bulk sales,
the Company continues to focus on retaining its lead share with major customers without
compromising on viability. Forthe cooking gas sales crossed 10 million tonnes during
2016-17, and about 1.53 crore new LPG connectionswere released, of which 93.25 lakh were
under
Pradhan Mantri Ujjwala Yojana.
IndianOil's R&D Centre, with a portfolio of over 550 active
patents, lends the much-needed backend support to the Company in the form of proprietary
research and commercialisation capabilities in lubricants, catalysts, refinery processes
and pipelines operations. The INDMAX unit at Paradip Refinery has showcased the
Company's strengths in commercialisation of world-class technologies. Similarly, a
grassroots INDAdeptG unit of 35 kilotonnes per annum capacity was commissioned at Guwahati
Refinery for BS-IV gasoline production. Ind-Coker technology was successfully demonstrated
at Panipat Refinerywith coking technology jointly licenced with EIL was deployed to revamp
the 0.6 MMTPA Coker-A unit at Barauni Refinery. A 16-inch diameter in-line inspectiontool
for pipelines unveiled recently is the first in a series of tools fully designed &
developed in-house. IndianOil R&D is also supporting the Company's petrochemicals
business and its forays into alternative energy resources.
IndianOil's petrochemicals and natural gas businesses have grown
significantly in the past few years, with the Company emerging as the second largest
player in the country in both the verticals, achieving the best ever sales performance in
the year 2016-17. The Company's E&P business received a boost during the year
with an IndianOil-led consortium acquiring substantial stakes in the Vankor and Taas
assets of Rosneft, the national oil During the year, adverse law & order conditions
compromised petroleum supplies to certain parts of Jammu & Kashmir, Tripura and
Manipur. However, IndianOil maintained near-normal supplies to these regions despite grave
threats to its employees and transporters. Similarly, as a savvy marketing entity,
IndianOil quickly adapted to the Government's demonetisation drive launched in
November 2016 and mainstreamed the popular cashless modes of payment across its sales
network, besides disbursing the new currency notes through its retail points. With focus
on cashless transactions, the Company is partnering several e-retailers, including banks,
for e-payment gateways as well as tying up with transport aggregators to optimise
distribution.IndianOil's initiative in promoting Rural Card has earned the
appreciation ofNITI Aayog.
A Resurgent Future
When we consider the overall business outlook, the substantial growth
potential of the Indian economy and its growing energy needs, coupled with the
comprehensive reforms agenda of the Government and the relatively range-bound crude oil
prices in the near-term, augur well for your Company.
As I had mentioned earlier, oil and gas will continue to play a
significant role in fuelling the growth of Indian economy at least till the year 2040 and
probably beyond. IndianOil has put in place a road map for scaling up its business
operations across the value chain in line with the growing demand. The Company is
focussing on several priority areas in order to fully exploit the emerging opportunities
for growth, expansion and diversification. Deregulation subsidy to consumers have changed
the market dynamics. Adapting itself to the changing business scenario, IndianOil is
streamlining its logistics by way of optimising the supply chain and infrastructure and
launching a plethora of customer-centric initiatives. As a technology-driven company,
IndianOil is investing in IT to optimise operations and enhance customer experience. While
the number of automated fuel stations crossed the 10,000 mark during the year, transparent
and assured digital processes are being incorporated in bulk storage points to ensure
delivery of right quality & quantity, and quick supplies. In addition, vehicle
tracking systems, e-portals, mobile applications, etc., are helping raise productivity and
strengthen stakeholder engagement.
With new growth avenues opening up in the Indian skies for regional
connectivity through tier-II and tier-III airports, the . Company is working on making its
aviation fuel business cost-effective by offering low-cost fuelling infrastructure models
at smaller airports through in-house expertise. In line with India's aspirations to
become a refining hub, IndianOil plans to raise its refining capacity from the current
80.7 MMTPA to around 150 MMTPA by the year 2030, through both brownfield expansions and
greenfield capacity creation. IndianOil is also pursuing a 60 MMTPA integrated
refinery-cum-petrochemicals project on the west coast jointly with other oil marketing
companies (OMCs), that is, BPC and HPC, at an approximate cost of ` 2.7 lakh crore. The
petroleum distribution infrastructure is being expanded in line with the Company's
growth plans. About 8,000 km of supply & pipelines network is being added by the year
2021. The Company is working to convert its refineries to produce BS-VI quantity fuels,
the top global standard today, by 1 st April 2020. This way, it would not only meet the
domestic demand for green fuels but also create capability to meet global quality
standards.
Petrochemicals & speciality chemicals is a growing and highly
profitable business. As the second largest player in the vertical, with a full slate of
products and a countrywide logistics & marketing set-up, IndianOil views further
integration of refining and petrochemicals as the way forward, and is scaling up its
petrochemicals portfolio further with a polypropylene project in Paradip and expansion of
existing facilities at its major refinery locations. ed to cut Significant investments are
being planned in natural gas infrastructure and marketing to align with the country's
changing energy mix. Increased global gas availability and low prices have strengthened
the Government's vision of a gas-based economy, besides presenting attractive growth
opportunities to players in the across the gas value chain, from LNG import terminals to
city gas distributionnetworks, major among them being a 5-MMTPA LNG import terminal at
Kamarajar Port near Chennai, scheduled for commissioning in 2018-19. Building on its
record of successful diversification into natural ed to gas marketing, IndianOil, along
with Coal India Ltd., NTPC, FCIL and HFCL, formed a joint venture company, Hindustan
Urvarak & Rasayan Ltd., for revival of three fertiliserplants located at Gorakhpur
(Uttar Pradesh), Sindri (Jharkhand)& ge Barauni (Bihar). This diversification also has
a strategic with the Company's successful Kisan SevaKendra Reflectingmodelfor
the rural markets.
As part of its quest to become an integrated energy major, IndianOil is
expanding its upstream portfolio of domestic and overseas oil and gas blocks to be able to
source atleast 10 per cent of its crude oil requirements from its own E&P assets in
the medium term. attractiv Globalisation oftheCompany'soperationsisan business
propositionand IndianOil's emergence as a major retail & terminalling player in
Sri Lanka and Mauritius is paving the way to entry into other emerging markets in
Southeast Asia and Africa, with overseasofficescoming up in Singapore, Myanmar and
Bangladesh. IndianOil's strategic strength in R&D is being further bolstered so
as to widen and deepen research into emerging fuel technologies. From licenced technology
to commercialisation of in-house expertisein refinery revamps, catalyst evaluation, etc.,
its scientists are engaged in research on futuristic technologies and harnessing
unconventional energy sources like battery technologies, 3G bio-fuels, etc. IndianOil
believes that it can be a diversifiedtechnology-provider in the near future. With this
objective, a new campus of the R&D Centre is coming up at Faridabad to house the new
research facilities. More scientific personnel are also being recruited. carbon emissions
by 33-35 India has per cent by 2030 and has set an ambitious target of 175 GW of renewable
energy-based capacity by 2022. In support of this, IndianOil is working to raise
its grid-connected renewable energy capacity from 188 MW (wind-168 MW, solar-20 MW)
currently to 260 MW by the year sector.IndianOilhasinterests 2020. It is also putting up
2G-ethanol & waste-to-energy projects. The Company has also committed to reduce its
carbon footprint by 18 per cent and water footprint by 20 per cent by the year 2020.
IndianOil believes that its human resource is its most valuable
investing in the growth and asset and is empowerment of its work-force. The Company
believes that knowledge and its right application is the key differentiator between
organisations in these competitive times. ed
Accordingly,IOCiansareacquiringcutting-inter-personal and leadership skills through
appropriate learning & development interventions. changing demographic profile of
India, IndianOil too is getting increasingly younger. The ‘millennials' are
making their presence felt with their out-of-the-box innovative ideas and their command
over emerging technologies. They represent the talented pool that will provide IndianOil
its future leadership. Inspired by its past achievements and energised by future
opportunities, IndianOil today is fully geared to enhance its presence across the energy
value chain in the years ahead, as an integrated energy major that would operate
seamlessly across geographies, catering to a wide spectrum of customers with customised
products & services. I look forward to your continued support, encouragement and
patronage in this endeavour.
(Sanjiv Singh) Chairman
Place: New Delhi Date : 21.07.2017
  Â
Indian Oil Corporation Ltd
Directors Reports
Dear Members,
On behalf of the Board of Directors, it gives me immense pleasure to present the 59th
Annual Report of the Corporation for the financial year ended 31st March, 2018,
alongwith the Audited Standalone and Consolidated Financial Statements and Auditors'
Report thereon. During the year, the Corporation continued to clock excellent performance
on all operational parameters while meeting the energy needs and aspirations of the
country. All the business verticals of the Corporation performed exceedingly well during
the year.
PERFORMANCE REVIEW FINANCIAL
|
2017-18 |
2016-17 |
|
US$ Million |
Rs. in Crore |
US$ Million |
Rs. in Crore |
| Revenue from Operations |
78,565 |
5,06,428 |
66,395 |
4,45,442 |
| (Inclusive of Excise Duty & Sale of Services) |
|
|
|
|
| EBITDA |
6,683 |
43,079 |
5,364 |
35,989 |
| (Profit Before Exceptional Items, Finance Cost, Tax, Depreciation & Amortisation) |
|
|
|
|
| Finance Cost |
535 |
3,448 |
514 |
3,445 |
| Depreciation |
1,096 |
7,067 |
927 |
6,223 |
| Profit Before Tax & Exceptional Items |
5,052 |
32,564 |
3,923 |
26,321 |
| Exceptional Items |
- |
- |
- |
- |
| Profit Before Tax |
5,052 |
32,564 |
3,923 |
26,321 |
| Tax Provision |
1,740 |
11,218 |
1,075 |
7,215 |
| Profit After Tax |
3,312 |
21,346 |
2,848 |
19,106 |
| Balance Brought Forward from Last Year |
|
|
|
|
| Less: Appropriations |
|
|
|
|
| Interim Dividend paid |
1,397 |
9,005 |
1,272 |
8,531 |
| Final Dividend paid |
74 |
474 |
300 |
2,014 |
| Corporate Dividend Tax |
298 |
1,921 |
324 |
2,177 |
| Insurance Reserve (Net) |
3 |
20 |
3 |
20 |
| Bond Redemption Reserve |
78 |
503 |
69 |
466 |
| CSR Reserve (Net) |
- |
(3) |
- |
(1) |
| General Reserve |
1,462 |
9,426 |
880 |
5,899 |
| Balance Carried to Next Year |
- |
- |
- |
- |
SHARE VALUE
|
2017-18 |
2016-17 |
|
US$ |
Rs. |
US$ |
Rs. |
| Cash Earnings Per Share* |
0.47 |
29.98 |
0.40 |
26.72 |
| Earnings Per Share* |
0.35 |
22.52 |
0.30 |
20.16 |
| Book Value Per Share* |
1.78 |
116.23 |
1.62 |
105.21 |
* Adjusted for Bonus Shares issued during 2017-18 Note: Exchange Rate used:-
For 2017-18: Average Rate 1 US$ = Rs. 64.46 and Closing Rate 1 US$ = Rs. 65.18 as on
31.03.2018 For 2016-17: Average Rate 1 US$ = Rs. 67.09 and Closing Rate 1 US$ = Rs. 64.86
as on 31.03.2017
PHYSICAL
|
Million Metric Tonnes |
| Particulars |
2017-18 |
2016-17 |
| Refineries Throughput |
69.00 |
65.19 |
| Pipelines Throughput |
85.68 |
82.49 |
| Product Sales |
88.76 |
83.49 |
| (inclusive of Gas, Petrochemicals & Exports) |
|
|
CHANGES IN SHARE CAPITAL
During the year, the Authorised Share Capital of the Corporation was increased from Rs.
6,000 crore to Rs. 15,000 crore. Your Corporation issued bonus shares in the ratio of 1:1,
i.e., one bonus share in the ratio of one share held in March, 2018. Consequently, the
paid-up capital 21,346 increased from Rs. 4,855.90 crore to Rs. 9,711.81 crore. 19,106
11,242 DISINVESTMENT BY THE GOVT. OF INDIA
The Government of India disinvested 1,75,62,435 equity shares of the Corporation in
November, 2017 in favour of BHARAT 22 ETF (an exchange traded fund comprising 22 PSU
stocks). Consequently, the holding of the President of India in the equity share capital
was reduced to 56.98 per cent from 57.34 per cent.
DIVIDEND
The Board of Directors of your Corporation has recommended a final dividend of 20 per
cent, i.e., Rs.2/- per equity share of Rs.10/- each, on the post Bonus paid-up Share
Capital in addition to an interim dividend of Rs.19 per share on the pre-bonus paid-up
Share Capital paid in February 2018. This is the 51st consecutive year for
which your Corporation has recommended payment of dividend. So far, your 22.52 Corporation
has paid a cumulative dividend of Rs.49,167 20.16 crore, excluding the final
dividend of Rs.1,942.36 crore recommended for the current year, subject to approval by 11.86
members. The final dividend shall be paid to the members, whose names appear in the
Register of Members as well as the Beneficial Ownership Position provided by NSDL/CDSL as
at the close of 22nd August 2018.
The Board of your Corporation has formulated a Dividend Distribution Policy. The Policy
is annexed to the Board Report at 2015-16 Annexure 2016-17 I and is 2017-18 also
hosted on the website of the Corporation i.e. www.iocl.com. for Bonus Shares
CONTRIBUTION TO EXCHEQUER
Your Corporation has consistently been the largest contributor to the Government
exchequer in the form of duties and taxes. During the year 2017-18, Rs. 1,90,670 crore was
paid to the exchequer as against Rs. 1,79,014 crore paid in the previous year. An amount
of Rs. 1,03,362 crore was paid to the Central Exchequer and Rs. 87,308 crore to the State
Exchequer as against Rs. 1,02,817 crore and Rs. 76,197 crore paid in the previous
year to the Central and State Exchequer respectively.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the provisions of the Companies Act, 2013 and the Accounting
Standards issued by the Institute of Chartered Accountants of India, your Corporation has
prepared the Consolidated Financial Statement for the group, including its subsidiaries,
joint venture entities and associates. The highlights of the Consolidated Financial
Results are as follows:
| Particulars |
2017-18 |
2016-17 |
|
(US$ Million) |
(Rs. in Crore) |
(US$ Million) |
(Rs. in Crore) |
| Revenue from Operations |
|
|
|
|
| (Inclusive of Excise Duty & Sale of Services) |
79,979 |
5,15,542 |
67,640 |
4,53,795 |
| Profit Before Tax |
5,344 |
34,450 |
4,167 |
27,956 |
| Profit After Tax |
3,510 |
22,626 |
3,038 |
20,385 |
| Less: Share of Minority |
68 |
437 |
80 |
536 |
| Profit for the Group |
3,442 |
22,189 |
2,958 |
19,849 |
Note: Exchange Rate used:-
For 2017-18: Average Rate 1 US$ = Rs. 64.46 For 2016-17: Average Rate 1 US$ = Rs. 67.09
MoU PERFORMANCE
The Memorandum of Understanding (MoU) with the Government of India setting performance
parameters and targets for the year 2017-18 was signed by Chairman of the Corporation and
Secretary (P&NG), Govt. of India, on 4th July 2017. MoU targets for the
Corporation continue to be more challenging and tougher over the years. However, the
Corporation has been continuously striving to achieve new heights in terms of performance
numbers surpassing all previous achievements.
Periodical review on the performance was carried-out throughout the year. The
performance rating for 2017-18 is yet to be finalized by the Government. However,
considering the performance on financial parameters as well as achievements towards
physical parameters, overall MoU performance for the year is expected to be
"Excellent".
INTERNATIONAL TRADE
In order to meet the crude oil requirement of its refineries, your Corporation imported
58.01 million metric tonnes of crude oil during the year, as against 55.71 million metric
tonnes in the previous year. The selection of crude oil is carefully done from a
diversified mix of supply sources. The import of petroleum products during the year was
6.53 million metric tonnes as against 7.21 million metric tonnes in the previous year. The
Corporation also exported petroleum and petrochemical products during the year.
OPERATIONAL PERFORMANCE Refineries
The 9 refineries of your Corporation achieved the highest ever crude throughput of
69.00 million metric tonnes during the year 2017-18 as against 65.19 million metric tonnes
in 2016-17. The capacity utilisation was 99.7 per cent as against 94.2 per cent during
2016-17. The distillate yield of refineries of your Corporation improved to 80.4 per cent
from 78.8 per cent achieved during the previous year. The refineries also achieved
excellent energy parameters of Fuel & Loss and Specific Energy Consumption (MBN) at
8.75 per cent and 72.61 respectively, as against 9.4 and 74.9 registered during 2016-17.
The Mathura and Panipat refineries commenced BS-VI grade auto fuel supplies well in
time to meet the 1st April 2018 timelines for National Capital Territory.
To boost flexibility in crude oil sourcing, the Corporation's crude oil basket was
expanded with inclusion of 16 new grades, of which 11 were of US origin. Processing of
cheaper, heavy & high-TAN grades was stepped up to over 21.4 per cent during the year,
compared to 18.4 per cent in the previous year. Processing of high-sulphur crude oil was
also higher at 55.6 per cent compared to 51.6 per cent in the previous year.
Pipelines
The cross-country network of crude oil, petroleum and gas pipelines of your Corporation
has been its major strength in reaching out to new markets and customers and sustaining
its competitive advantage as the least-cost supplier. The crude oil pipelines achieved a
throughput of 51.08 million metric tonnes as against throughput of 51.34 million metric
tonnes during the previous year. The petroleum product pipelines recorded the highest ever
throughput of 34.60 million metric tonnes as against 31.15 million metric tonnes achieved
last year, registering a growth of 11.06 per cent. The gas pipelines also achieved the
highest ever throughput of 1,683 MMSCM during the year, as against a throughput of 1,587
MMSCM in 2016-17.
With the commissioning of 543 km of new pipeline sections during the year and
augmentation of existing pipelines, the total length of the pipeline network of crude oil,
product and gas pipelines as on 31st March 2018 expanded to 13,391 km with
cumulative throughput capacity of 94.79 MMTPA (crude oil and product) and 9.5 MMSCMD (gas
pipelines).
Marketing
Your Corporation continued to energise and empower all sections of the economy during
the year and achieved highest ever sales of 77.13 million metric tonnes of petroleum
products during the year, as against 74.11 million metric tonnes during the previous year.
In addition, 7.18 million metric tonnes of petroleum products were exported during the
current year as against 4.72 million metric tonnes exported during the previous year.
During the year, the Corporation commissioned 953 retail outlets (fuel stations,
including 502 Kisan Seva Kendra outlets in rural areas) taking their total number to
27,089. The Kisan Seva Kendra (KSK) outlets of the Corporation increased their
contribution to the total sales of Corporation with Petrol (Retail) touching a new high of
15.7 per cent and Diesel (Retail) touching 15.1 per cent. In addition, CNG facilities were
commissioned at 100 retail outlets during the year, which increased the CNG market share
by 3.29 per cent. Your Corporation continued with its focus on the use of alternate
energy, and 2,533 retail outlets were converted to operate on solar energy during the
year, taking their number to 9,140 outlets i.e. 34 per cent of the total number of retail
outlets.
During the year, the Corporation released new domestic LPG connections to 131.7 lakh
customers, out of which, 73.8 lakh connections were released under Pradhan Mantri Ujjwala
Yojana (PMUY), the flagship scheme of the Government of India, to the women of poor
households with an objective to improve the health of poor families by providing clean
cooking fuel. The Corporation achieved an all-time high LPG sales of more than 10.8 MMT
and bottling capacity was augmented by 540 TMTPA to meet the increased demand of LPG.
In the Lubricants segment, SERVO maintained its market leadership position
during the year and registered positive growth across all segments of finished lubricants.
PROJECTS
Your Corporation recognises the importance of infrastructure development and has been
consistently investing in several projects across the country. The project teams across
the divisions in the Corporation ensure that the projects are implemented seamlessly. The
projects are financed through an optimum mix of internal accruals and borrowings from
domestic as well as international markets whenever required. During the year, the
Corporation spent over Rs. 20,000 Crore on capital projects including Rs. 3,275 crore
through Special Purpose Vehicle. Despite the significant capital expenditure, the overall
borrowings of the Corporation increased only by Rs. 3,210 crore as most of the Capex
requirement was met through internal accruals.
The details of the projects completed, ongoing and future are as under:-
Completed Projects
• Phase-I of BS-IV fuel quality upgradation projects at Barauni and Gujarat
Refineries
• 1.3 MMTPA Petcoke evacuation facility at Paradip Refinery
• Feed Preparation Unit at Haldia Refinery
• Jharsuguda-Khunti section of Paradip-Raipur-Ranchi product pipeline
• 157 km of Paradip-Balasore section of Paradip-Haldia-Durgapur LPG Pipeline
Ongoing Projects
Refinery
• Distillate yield improvement project at Haldia Refinery
• Propylene Unit at Paradip Refinery Refinery
• Phase-2 of BS-IV Fuel Quality Upgradation Projects at Barauni and Gujarat
refineries
• BS-VI projects at all refineries
• Installation of INDMAX Unit alongwith associated facilities at Bongaigaon
Refinery
• Infrastructure facilities Refinery at Gujarat Refinery and Dumad for
Koyali-Ahmednagar-Solapur pipeline
• Infrastructure development for grid power import at 220 KV at Gujarat, Mathura
and Barauni refineries
• 7 Nos. additional crude oil tanks at Paradip Refinery
• Paradip-Haldia-Durgapur LPG pipeline
• Paradip-Hyderabad pipeline Refinery
• Augmentation of Paradip-Haldia-Durgapur LPG pipeline and its extension up to
Patna and Muza_arpur
• Jaipur-Panipat naphtha pipeline, along with augmentation of Koyali-Sanganer
pipeline
• CBR-Trichy pipeline
• Ennore-Trichy-Madurai LPG pipeline
• Ennore-Nagapattinam-Tuticorin-Madurai-Bengaluru natural gas pipeline
• 30" Crude Oil Pipeline in Haldia-Barauni section of Paradip-Haldia-Barauni
Pipeline and conversion of existing 18" twin pipeline in Haldia-Barauni section to
product and gas pipeline.
• Branch pipeline on Barauni-Kanpur pipeline to Baitalpur and Motihari
• Motihari-Amlekhgunj pipeline
• Koyali-Ahmednagar-Solapur pipeline
• Augmentation of Chennai-Trichy-Madurai pipeline
• Dhamra-Haldia Refinery Gas Pipeline with spurline to Paradip Refinery.
• Tundla-Gawria Pipeline with augmentation of Mathura-Tundla Pipeline
• Dahej-Koyali Natural Gas Pipeline
• LPG import terminal at Paradip and Kochi
• Augmentation of LPG terminal at Kandla from 0.6 MMTPA to 2.5 MMTPA
• LPG bottling plants at Banka, Gorakhpur, Bathinda, Goindwal Sahib, Agartala,
Mandla, Nagpur, Salem, Gwalior, Sitarganj, Trishundi, Korba Khurda, Shillong, Kharagpur
and Jodhpur.
• Product storage depots at Una (H.P.), Guntakal (A.P.) and Asanur (T.N.)
• 5-MMTPA LNG import terminal project at Ennore (through a Joint Venture Company)
• Ethylene Glycol Project at Paradip
Future Projects
• Barauni expansion to 9 MMTPA
• Expansion of PX/PTA Plant at Panipat Refinery
• Installation of Indjet Unit at Barauni
• Residue Upgradation and quality improvement project at Mathura Refinery
• Panipat Refinery Expansion from 15 MMTPA to 25
MMTPA
• Acrylics / Oxo Alcohol Project at Dumad, Gujarat
• Gujarat Expansion to 18 MMTPA
• Catalytic Reforming Unit at Guwahati Refinery
• Catalytic De-Waxing Unit (2nd chain) at Haldia Refinery
• LAB Expansion at Gujarat
• PX/PTA Project at Paradip
• 3G Ethanol from off-gas at Panipat
• Expansion of Naphtha Cracker and revamp of MEG at Panipat
• 2G Ethanol Project at Panipat
• Guwahati-Silchar-Imphal product pipeline
• Paradip-Somnathpur-Haldia Pipeline
• Kandla-Gorakhpur LPG Pipeline through a Joint Venture Company.
• 60 MMTPA West Coast Refinery in Maharashtra through a Joint Venture Company.
37 new lube grades were introduced during 2017-18 and 34 product approvals were
obtained from Original Equipment Manufacturers (OEMs). In the overseas markets also, SERVO
registered excellent performance with a growth of 18 per cent. SERVO now has a
global presence in 30 international markets.
The Aviation Service of the Corporation continued to maintain its leadership position
during the year and improved its market share to 61 per cent. During the year, your
Corporation commissioned its aviation fuel stations at Puducherry, Kadappa and Shillong.
Explosives & Cryogenics
During the year, the Explosives and Cryogenics businesses of your Corporation continued
with excellent performance and recorded the highest ever production and sales of
explosives and cryocans. The Explosives group manufactured and sold 1,76,757 metric tonnes
of explosives during the year, recording a growth of 12 per cent over the previous year's
volume of 1,57,661 metric tonnes. The Cryogenics group sold 28,782 units of cryocans and
cryovessels during 2017-18, as against previous year's sale of 27,694 units of cryocans
and cryovessels.
RESEARCH & DEVELOPMENT
The year was marked by deployment of major technologies developed by R&D Centre at
the Corporation's refineries. An Octamax unit was commissioned at Mathura Refinery to
produce high-octane fuel for BS-VI gasoline pool. The unit is a true amplification of the
‘Make in India' drive as the technology was conceptualised, engineered and executed
by R&D team and Mathura Refinery. The DHDT Unit at Gujarat Refinery based on indDiesel
technology developed by R&D centre was implemented during the year. The unit produces
Diesel meeting BS-VI norms for Sulphur. The flagship innovation of R&D centre, INDMAX
was adjudged winner in 22nd World Petroleum Congress in Turkey.
The R&D Centre filed for 82 patents and was granted 54 patents (14 Indian and 40
overseas) during the year. Your Corporation now has 611 active patents in its kitty.
India's quest for clean energy solutions crossed an important milestone with the
commencement of demonstration trials on the country's first fuel cell-powered bus at the
R&D Centre. Your Corporation has also acquired minority stake (4 per cent) in the
LanzaTech New Zealand Limited for US$ 20 million through its wholly owned subsidiary in
Singapore. LanzaTech, a company registered in New Zealand, is the global leader in
bio-based gas fermentation technology and the company provides novel and economic
technologies for production of ethanol and other high value chemicals from industrial
o_-gases of steel mills, petroleum refineries etc.
BUSINESS DEVELOPMENT
In order to achieve its vision of becoming ‘The Energy of India', your
Corporation has been expanding its business beyond petroleum refining and marketing. In
this context, the verticals of Petrochemicals, Natural Gas, Exploration & Production,
Alternative Energy and International Business are emerging as integral business drivers of
the Corporation in integrating and diversifying its business. Moreover, the portfolio of
the Corporation in these sectors has proved to be immensely beneficial with the profits
from these sectors offsetting the volatility from the Corporation's refining and marketing
Business areas.
Petrochemicals
Duringtheyear2017-18,theCorporationrecordedpetrochemicals sales (domestic and exports)
of 2.37 MMT as against 2.58 MMT in 2016-17. The sales volumes were lower mainly due to
shutdown of plants that restricted the production and resultantly the sales.
The Corporation's PROPEL brand of petrochemicals is the second largest in the
Indian petrochemicals market. The Corporation's offerings include Polymers, Linear Alkyl
Benzene, Paraxylene / Puri_ed Terephthalic Acid, Glycols and Butadiene. The Corporation is
a major supplier of Polymer products to leading multinationals. During the year, 30 new
Original Equipment Manufacturers approvals were obtained and 3 new grades were rolled out.
The global reach of PROPEL brand increased further, with its exports now reaching
75 countries. During the year, PROPEL was recognised by The Economic Times in the
Best Plastics & Polymers Brands 2018 as a "Symbol of Excellence in Plastics &
Polymers Industry".
Natural Gas
The Corporation is investing across the Natural Gas value chain in the country and is
committed to enhancing availability through expansion of infrastructure of Natural Gas in
the country. During the year, the overall Regasi_ed Liquefied Natural Gas (R-LNG) sales of
the Corporation was 1.89 MMT. The Corporation now has 58 R-LNG customers. In addition,
1.98 MMT of R-LNG was internally consumed in three of the Corporation's refineries, viz.
Panipat, Mathura and Gujarat while its Digboi Refinery consumed 0.06 MMT of
domestic gas.
Globally, the interest in usage of LNG as a transportation fuel is on the rise. The
Corporation has also been the pioneer in India in supplying LNG to customers not located
on the pipeline network through its ‘LNG at Doorstep' service. During the year, sale
of LNG through this model grew by 17.3 per cent over the previous year.
The Corporation imported 17 cargoes (1.13 MMT) of LNG during the year, against 11
cargoes (0.71 MMT) in the previous year. The Corporation has so far signed 22 Master Sales
& Purchase Agreements (MSPAs) with various international suppliers for purchase of LNG
on Spot/Short term basis of which 9 MSPAs were signed during the year.
The Corporation through its Joint Venture Company (JVC), IndianOil LNG Pvt. Ltd.
(IOLPL) is setting up a 5 MMTPA LNG Terminal at Kamarajar Port, Ennore in Tamil Nadu,
which will be the first LNG Terminal on the East Coast. The LNG Terminal is scheduled to
be commissioned in 2018-19.
The Corporation is operating/implementing City Gas Distribution (CGD) network in 9
Geographical Areas (GAs) through its two JVCs viz. Green Gas Ltd. (GGL) in Lucknow &
Agra and IndianOil-Adani Gas Pvt. Ltd. (IOAGPL) in Allahabad, Chandigarh, Panipat, Daman,
Ernakulam, Udham Singh Nagar & Dharwad. IOAGPL participated in 8th Round of
CGD Bidding invited by the Petroleum & Natural Gas Regulatory Board and emerged as
winner for South Goa and Bulandshahar GAs.
The Corporation is involved in developing three natural gas pipelines viz.
Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline through the JVC GSPL India Transco Ltd. and
Mehsana-Bhatinda Pipeline & Bhatinda-Jammu Pipeline through the JVC GSPL India Gasnet
Ltd.
Exploration & Production
The Corporation is engaged in upstream (Exploration & Production) activities
through its joint operations, joint ventures and wholly owned subsidiaries (WoS). The
upstream portfolio of the Corporation consists of 19 assets (9 domestic and 10 overseas)
with active Participating Interests (PI) ranging from 3 to 100 per cent. Out of 19 assets,
the Corporation has 8 Producing (7 overseas & 1 domestic), 3 domestic Discovered Small
Fields, 2 Coal Bed Methane, 1 overseas under Development, 2 domestic Exploration with
discoveries under appraisal and 3 under Exploration (2 overseas & 1 domestic) assets.
During the year, Hydrocarbon production increased by 66 per cent over last year from
1.61 MMT to 2.67 MMT from 6 overseas producing assets viz. Lower Zakum (UAE), Taas
(Russia), Vankor (Russia), Niobrara Shale Oil (USA), Pacific Northwest (Canada), Carabobo
(Venezuela) and one domestic producing asset i.e. Dirok (Assam, India).
A major highlight during the year was acquisition of new blocks overseas. The
Corporation acquired acquired 3 per cent PI in Lower Zakum, Offshore Abu Dhabi (UAE)
through a consortium with ONGC Videsh Ltd. and Bharat PetroResources Ltd. In addition to
this, the Corporation acquired 17 per cent PI in Mukhaizna Oil Field, a producing field in
Oman in April, 2018 resulting in an increase of its production profile by 20,400 boe/day.
A major milestone for the Corporation was the beginning of production of gas and
condensate from its Pre-NELP asset AAP-
ON-94/1 (Dirok Field) in August 2017. This marked the advent of its first domestic
exploration asset maturing from exploration stage to a producing asset. The Corporation
has 29.03 per cent PI in this asset.
Alternative Energy
The Corporation has a portfolio of 168 MW wind power and 34 MW solar PV, which includes
17.5 MW grid connected solar PV and 16.5 MW o_-grid solar projects (as on 31.03.2018). The
renewable power generated from the wind and solar projects was 337 GWh, which corresponds
to an emission reduction of metric tonnes carbon dioxide equivalent). During the year, 14
MW of solar PV capacity was installed and, work is in progress for installation of another
13 MW at various units of the Corporation.
The Corporation has also been selling solar lanterns as an energy access solution.
During the year, around 14,000 solar lanterns were sold through its LPG network.
Cumulatively, over 4.1 lakh solar lanterns have been sold by the Corporation.
The Corporation is setting-up three 2nd Generation Ethanol production plants
at Panipat (Haryana), Gorakhpur (UP) and Dahej (Gujarat) of 100 KL per day capacity each.
Under the aegis of Swachh Bharat Mission of the Govt. of India, two
waste-to-energy plants of 5 tons per day capacity each were commissioned in Varanasi by
the Corporation. The plants process organic Municipal Solid Waste and produce Biogas and
Compost. The electricity produced from the generated Biogas is being used to energise
street lights in the vicinity of each plant.
Sustainable Development
Your Corporation is deeply committed to the ethos of Sustainable Business. It has been
publishing Annual Sustainability Report since 2005-06. During the year, the Corporation
completed carbon and water foot-printing of all its refineries, pipelines & marketing
installations, and its IndianOil Institute of Petroleum Management, Gurgaon, and the
R&D Centre. The Corporation is replacing all the conventional lighting with LED lights
across all its installations. Cumulatively, 3.4 lakh conventional lighting has been
replaced with LED. During the year, 1.22 lakh trees were planted at various locations and
units of the Corporation. Waste paper recycling is another major initiative of the
Corporation and during the year 130 tonnes of waste paper was recycled, which includes
selling of waste paper to designated recyclers. The Corporation has installed 561
rainwater harvesting systems and cumulatively the systems have harvested 3.26 billion
litres of water during 2017-18.
Overseas Business Development
The Corporation has been constantly exploring various overseas downstream opportunities
with special focus on the neighbouring countries. During the year, the Corporation opened
offices in Dhaka, Bangladesh and Yangon, Myanmar. During the year, six export consignments
totalling 123 TMT consisting ATF, MS and HSD were supplied to neighbouring countries.
INFORMATION SYSTEMS & OPTIMISATION
The year witnessed a lot of activity in the area of cyber security both in the
Corporation and the cyber world with two major ransomware attacks globally, which a_ected
India also. However, there was no impact on the Corporation. Cyber Security Audit of
select locations was conducted to identify potential vulnerabilities and appropriate
mitigation steps were taken to strengthen the security wherever vulnerabilities were
found. A Centralized Security Operation Center (SOC) was commissioned in which the
security devices across the Corporation are now monitored centrally.
During the year, the customer-facing ePIC portal, first step towards delivering a
next-generation customer experience was launched. Customers, who require service or
support across any line of business of the Corporation, will have a single platform to
voice their issues, which would be appropriately routed to the concerned person in a
Centralised Grievance System, with a proper escalation matrix in place.
GST was successfully implemented in the Corporation on 1st July, 2017. The
first invoice from SAP was generated on time and your Corporation was first among Oil
Marketing Companies to roll out GST. During the year, Indane refill booking
facility was enabled through Facebook and Twitter in addition to other existing channels.
The Optimisation group in the Corporation carries out detailed analysis of demand
forecast for purchase of suitable crude oil cargoes through term contracts or spot
purchases, logistics arrangements, export of products, etc., to maintain supply of
products across the country as well as to optimise corporate profitability. During the
year, based on evaluation of crudes, 12.1 MMT of cheaper opportunity crudes were procured
and for the first time ever, 6.6 million barrels of US crude was also imported. The
Optimisation group also plays an important role in evaluation of projects by carrying out
a detailed analysis of supply & demand.
HEALTH, SAFETY & ENVIRONMENT (HSE)
Your Corporation is committed to conduct business with a strong environment conscience,
ensuring sustainable development, safe workplaces and enrichment of the quality of life of
its employees, customers and the community at large. All refineries of your Corporation
are certified to ISO:14064 standards for sustainable development as well as for the
Occupational Health & Safety Management System (OHSMS/OHSAS-18001), besides having
fully equipped occupational health centres. Compliance with safety systems and procedures
and environmental laws is monitored at the unit, division and corporate levels. The HSE
activities of the Corporation are reviewed in Board meeting. During the year, safety
audits were carried out at various offices and locations and various training programmes
were also conducted across the Corporation covering safety-related topics.
ENERGY CONSERVATION
Energy conservation is important key parameter in refining business and high importance
is accorded for the same at all the refineries and units of your Corporation. The
performance of various units is continuously monitored and efforts are made to keep
abreast of the latest technological developments and global best practices. As a result of
various energy conservation measures undertaken, the energy performance parameter (indexed
to the complexity of operations) in terms of MBN* of the refineries of your Corporation
during the year is down to 72.61, which is the best ever achieved, as against the energy
index of 81.9 in the previous year. The energy conservation schemes implemented during the
year in various refineries resulted in an estimated fuel savings of 63,093 MT Standard
Refinery Fuel (SRF) in the year, valued at about Rs. 149.4 crore. Under pipeline
operations, various initiatives were taken during 2017-18, which resulted in improvement
of Specific Range Consumption of Pipelines by 18.44 per cent.
*MBN–Thousand British Thermal Units / Barrel / Energy Factor (MBTU/BBL/NRGF)
HUMAN RESOURCES
Your Corporation has a strong and dedicated workforce as on 31st March 2018
of 33,157 consisting of 17,123 executives and 16,034 non-executives. This included 2,770
women employees comprising 8.36 per cent of the total workforce.
Your Corporation diligently follows the Presidential directives and guidelines issued
by the Government of India regarding reservation in services for SC/ ST/ OBC/ PWD (Persons
with Disabilities)/ Ex-servicemen to promote inclusive growth. Rosters are maintained as
per the directives and are regularly inspected by the Liaison Officer(s) of the
Corporation as well as the Liaison Officer of the Government of India to ensure proper
compliance. Grievance/ Complaint Registers are also maintained at Division/ Region/ Unit
levels for registering grievances from OBC/SC/ST employees. Efforts are made to promptly
dispose of representations/grievances received from them. In accordance with the
Presidential Directive, the details of representation of SC/ ST/OBC in the prescribed
format are attached at Annexure-II to the Report.
During the year, the Corporation received Presidential Directives issued by the
Ministry of Petroleum & Natural Gas for implementation of revision of pay and various
allowances payable to the Board level executives and below Board level Executives of the
Corporation. The Corporation is in the process of implementation of the directives
received in a phased manner.
The provisions of 4 per cent reservation for Persons with Disabilities in line with
guidelines/instructions issued by the Government of India are implemented by the
Corporation. Necessary concessions/relaxations in accordance with the rules in this regard
are also extended to physically challenged persons in recruitment. The number of employees
with disabilities as on 31st March 2018 was 611 constituting 1.84 per cent of
the total employee strength.
Your Corporation maintained cordial industrial relations during the year, and continued
to provide comprehensive welfare facilities to its employees to take care of their health,
efficiency, economic betterment, etc. and to enable them to give their best at the
workplace. Your Corporation supports the participative culture in the management of the
enterprise and has adopted a consultative approach with the collectives, establishing a
harmonious relationship for industrial peace thereby leading to higher productivity.
Employees' participation is ensured through information-sharing with collectives and
employees on a regular basis while seeking their support, suggestions and cooperation. The
efforts to promote employees' participation in management were continued during the year
through Suggestions Scheme, Total Productivity Maintenance (TPM) and various employee
engagement initiatives.
Your Corporation has initiated steps towards formulation of an Employee Value
Proposition (EVP) with an objective of establishing and promoting the Corporation's
Employee Brand amongst the potential employees. An EVP is a unique set of benefits, which
employees receive in return for skills, capabilities and experience they bring to a
Company. While addressing the basic question "Why should I work for you", it
enables a _rm to position itself as employer of choice and thus, attract best talent
besides providing a reason to the existing employees for working with an organisation.
During an experiential workshop facilitated by XLRI Jamshedpur, a taskforce of 25 officers
framed few EVP statements. These statements are being tested externally with students of
B-schools and engineering institutes as potential employees; and internally within the
Corporation to validate their relevance and attractiveness after which a structured EVP
will be finalised.
Your Corporation emerged as one of the best employers in India and first amongst the
Public Sector Undertakings in the Great Place to Work assessment conducted by the Great
Place to Work Institute, in association with the Economic Times. IndianOil YuvaUrja, a
platform for connecting with Gen Y/Millennials and sharing information on your
Corporation's employee-friendly policies has been developed to connect with both potential
employees and the executives joining your Corporation.
1145 Executives were recruited during 2017-18 from various reputed institutes and
through all India open recruitment exercise. IndianOil has a well defined Common Corporate
Induction Module (CCIM), a specially designed and standardised program to facilitate the
transition of these young executives from academic life to professional life. To ensure
that they get integrated in the organization, all the new executives are provided with
Divisional Induction Module, followed by ‘On-the-Job' training. The Induction Modules
are tailor-made for Divisions to provide a holistic overview of the working of respective
Divisions. Each executive is provided with a mentor within the first week of joining at
their respective locations as part of IndianOil Mentoring Programme – "Gurumitra".
Your Corporation has a structured succession planning framework linked to the
leadership development system for developing leaders at all levels from within. Besides
regular developmental interventions, your Corporation's flagship Leadership Competency
Development Programme for executives - "Saksham" is a progressive step
towards ‘need-based' development of leadership competencies – Strategic,
Operational, Business Results, Customer, Talent, Content, Change and Relationship. The
modules under Project "SAKSHAM" have been developed and being delivered by the
best B-Schools in the country, viz. IIMs – Ahmedabad, Bangalore, Calcutta and XLRI
Jamshedpur.
The scope of Project Saksham, which was earlier focused on officers
transitioning from Middle to Senior Management (Grade F, G and H), was expanded during
2017-18 to include officers undergoing transition from Junior to Middle Management (Grade
D & E). In 2017-18, nearly 400 executives in Grades F, G & H and nearly 250
executives in Grades D & E were covered under this programme. To meet the increased
coverage, IndianOil tied up with other IIMs - Lucknow, Indore, Kozhikode and Shillong.
Your Corporation is committed to implementation of Hindi at its various offices /
locations / units in day-to-day functioning. The provisions of Official Language Act, 1963
and Rules noti_ed thereunder are complied with. The communications received in Hindi and
any application, appeal or representation written or signed by an employee in Hindi is
replied-to in Hindi. The Official Language Implementation Committees (OLIC) have been
formed and are functioning in all offices / units. The Committees review the progress of
implementation of official language policies.
RIGHT TO INFORMATION ACT (RTI)
Your Corporation has put in place an elaborate mechanism across the organisation to
deal with matters related to Right to Information Act, 2005 since its inception. The
Corporation has designated one Nodal Officer based at Corporate Office and 34 First
Appellate Authorities (FAAs), 45 Central Public Information Officers (CPIOs) and 45
Assistant Public Information Officers (APIOs). The details of all the designated
officials, 3rd party audit reports etc. are hosted on the website of the Corporation. Your
Corporation has aligned with the online RTI portal launched by DoPT and all the
applications / appeals received through the portal have been disposed off through the
portal only. The Quarterly Reports / Annual Reports have been submitted through online
portal of Central Information Commission – www.cic.gov.in within the prescribed time
limit. A total of 7331 requests and 851 first appeals were received during the year and
all have been disposed off within the stipulated time. 239 second appeals were filed
before the Central Information Commission, New Delhi and all have been disposed off after
due follow-up without any adverse remarks from the Hon'ble Commission.
COMPLIANCE WITH THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
& REDRESSAL) ACT, 2013
The provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 have been implemented across the Corporation with the clear
objective of providing protection to women against sexual harassment at the workplace and
for prevention and redressal of complaints. Internal Complaints Committees have been set
up at Unit/Region/Head Office level, headed by senior level women executives, to deal with
sexual harassment complaints, if any, and conduct enquiries.
There were six complaints of sexual harassment, which were pending as on 1st
April, 2017. During the year 2017-18, one complaint was received and four complaints were
disposed off. As on 31st March, 2018, three complaints are pending.
Regular workshops are held especially for women employees with an objective to bring
awareness about their rights and facilities at workplace and emphasizing the provisions of
the Act. During the year, 65 workshops/awareness programmes were conducted. Gender
sensitization programmes, sensitizing the male employees, are also being conducted
regularly. Newly recruited employees in the Corporation are made aware of the provisions
of the Act and the measures adopted by the Corporation to prevent such incidents.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Corporation has utilized 100% of the CSR Budget allocated for the year 2017-18,
amounting to Rs. 331.05 crore. This gratifying achievement exempli_es your Corporation's
unstinted commitment to serve the society, which has been an integral philosophy of
conducting its business operations since inception.
In addition to serving the Nation through thousands of marketing and operation
touch-points across the country, your Corporation, through its CSR outreach, has touched
hearts and souls of millions of under-privileged citizens with care and passion, the key
values, which your Corporation actively nurtures and espouses.
During 2017-18, your Corporation reached out to a large number of beneficiaries through
a variety of CSR initiatives. Under its flagship healthcare initiatives viz. Swarna
Jayanti Samudayik Hospital, Mathura
(Uttar Pradesh); AOD Hospital, Digboi (Assam); Sarve Santu Niramaya, Digboi (Assam);
your Corporation treated more than 76,100 patients. Assistive devices were provided to 900
Divyangjans across 4 States and about 23,400 animals were given various healthcare
treatments for their well being. Under various Skilling initiatives across India viz.
Skill Development Institute, Bhubaneswar (Odisha); Multi-Skill Development Institute,
Digboi (Assam); Skill Development Centre, Barauni (Bihar) etc., 1,200 beneficiaries were
skilled in various trades. Through projects like IndianOil Gyanodaya, scholarships were
provided to more than 6,100 students across India. For meeting basic livelihood needs viz.
drinking water and electricity, IndianOil Jal-Jeevan projects were rolled out in 30
villages and IndianOil Surya-Prakash (solar) projects were implemented in 25 villages.
As a progressive step towards strengthening Industry-Academia partnership, Institute of
Chemical Technology (ICT) Mumbai and IndianOil have agreed to jointly start an Integrated
Masters programme in Chemical Engineering (5-years), with a strong emphasis on industry
internship. ICT Mumbai – IndianOil Odisha Campus (ICTM-IOC), Bhubaneswar will also
offer Executive M. Tech. in Chemical Engineering and Ph. D. Programmes under UGC/Industry
fellowships.
The Hon'ble President of India inaugurated Institute of Chemical Technology Mumbai -
IndianOil Odisha Campus, Bhubaneswar and laid the foundation stone of the main campus of
Skill Development Institute, Bhubaneswar on 18th March, 2018.
A report on your Corporation's CSR activities as per the provisions of the Companies
Act, 2013 along with the CSR Highlights for FY 2017-18 is attached at Annexure-III to
the report. The composition of the CSR Committee is provided in the Corporate Governance
Report. The CSR Policy of the Corporation can be accessed at the website of the
Corporation on the link https://iocl.com/aboutus/ Ioc_S&CSR_policy.pdf
VIGILANCE
The Vigilance department acts as a link between the organisation and Chief Vigilance
Commissioner. The objective of the vigilance function is to ensure maintenance of the
highest level of integrity throughout the Corporation. The Vigilance group takes
preventive, punitive and participative steps, with emphasis on the preventive and
participative aspects. During the year, 94 vigilance awareness programmes were conducted,
which were attended by about 2,300 employees.
Disciplinary action under applicable Conduct, Discipline and Appeal Rules, 1980 and
Certified Standing Orders were taken by the Corporation for irregularities/lapses. The
number of disciplinary matters related to vigilance cases disposed off during the year
2017-18 was 57. The number of such cases pending at the end of year 2017-18 was 35. The
aforesaid cases pertain to irregularities such as indiscipline, dishonesty, negligence in
performance of duty or neglect of work etc. The Corporation continuously and regularly
endeavours to ensure fair and transparent transactions through technology interventions
and system/process review in consultation with Central Vigilance Commission and Internal
Vigilance set-up.
PUBLIC DEPOSIT SCHEME
The Public Deposit Scheme of the Corporation was closed with effect from 31st
August, 2009. The Corporation has not invited any deposits from the public during the year
and no deposits are outstanding as on 31st March, 2018 except the old cases
amounting to Rs. 55,000/-, which remain unpaid due to unsettled legal / court cases.
CORPORATE GOVERNANCE REPORT
The Corporate Governance Report highlighting the endeavours of your Corporation in
ensuring transparency, integrity and accountability in its functioning has been
incorporated as a separate section, forming a part of the Annual Report.
MANAGEMENT'S DISCUSSION & ANALYSIS REPORT
The Management's Discussion & Analysis (MDA) Report, as required under Corporate
Governance guidelines, has also been incorporated as a separate section forming a part of
the Annual Report.
BUSINESS RESPONSIBILITY REPORT
The Business Responsibility Report covering initiatives taken with environmental,
social and governance perspective has been prepared in accordance with the directives of
SEBI and forms a part of the Annual Report.
AUDIT COMMITTEE
The Audit Committee of your Corporation comprises three members, all of whom are
Independent Directors. The recommendations made by the Audit Committee during the year
were accepted by the Board. The other details of the Audit Committee, like its
composition, terms of reference, meetings held, etc., are provided in the Corporate
Governance Report.
CODE OF CONDUCT
The Board of your Corporation has enunciated a code of conduct for the Directors and
senior management personnel, which has been circulated to all concerned and has also been
hosted on the Corporation's website. The Directors and senior management personnel have
affirmed compliance with the code of conduct.
RISK MANAGEMENT
Your Corporation has a well laid-down risk assessment & management process. A Risk
Management Compliance Board comprising senior management personnel and headed by Chief
Risk Officer reviews the various risks associated with the Corporation's business. The
Corporation has constituted a Risk Management Committee comprising whole-time Directors,
which oversees risk management activities. A report is, thereafter, put up to the Audit
Committee and the Board.
INTERNAL FINANCIAL CONTROLS
Your Corporation has put in place adequate internal financial controls for ensuring the
efficient conduct of its business in adherence with laid-down policies; the safeguarding
of its assets; the prevention and detection of frauds and errors; the accuracy and
completeness of the accounting records; and the timely preparation of reliable financial
information, which is commensurate with the operations of the Corporation. The Corporation
also has a separate Internal Audit department headed by a Chief General Manager, who
directly reports to the Chairman. The Internal Audit department has a mix of officials
from finance and technical functions, who carry out extensive audit throughout the year.
The statutory auditors are also required to issue the Independent Auditor's Report on the
Internal Financial Controls of the Corporation under Clause (i) of Sub-Section 3 of
Section 143 of the Companies Act 2013. The report issued thereupon has been attached
alongwith the Standalone and Consolidated Financial Statements respectively.
REMUNERATION TO THE AUDITORS
The Office of the Comptroller & Auditor General of India had appointed the
Statutory Auditors for the financial year 2017-18. The Auditors' remuneration for the year
2017-18 has been _xed at Rs. 145 lakhs plus applicable taxes. In addition, reasonable
out-of-pocket expenses incurred are also reimbursed at actuals.
COST AUDIT REPORT
Cost Auditors were appointed for conducting the cost audit of the Corporation's
refineries, lube blending plants and other units for the year 2017-18. A remuneration of
Rs. 18.50 lakhs and applicable taxes had been _xed by the Board for payment to the cost
auditors for the year 2017-18, which was rati_ed by the shareholders in the last AGM. The
cost audit for the year 2016-17 was carried out for various units of the Corporation and
the cost audit report was filed by the Central Cost Auditor with the Central Government in
the prescribed form within the stipulated time period. The cost audit report for 2017-18
would also be filed within the stipulated time.
SECRETARIAL AUDIT
The Secretarial Audit Report for the year 2017-18 confirms that the Corporation has
complied with the applicable provisions of the corporate laws, guidelines, rules, etc.,
which are within the purview of the Corporation. The report, duly certified by a
practising Company Secretary, is attached at Annexure-IV to this Report.
The Secretarial Auditor has made an observation that the Corporation has not complied
with the conditions with regard to minimum number of non executive Directors and
Independent Directors in the composition of Board of Directors for the period 01.04.2017
to 21.09.2017 and with regard to appointment of Woman Director for the period 01.04.2017
to 26.10.2017. In this regard, it is clari_ed that the Corporation being a Government
Company under the administrative control of the Ministry of Petroleum & Natural Gas,
the selection and appointment of Directors, (including Independent Directors and Woman
Director) vests with the Government of India as per the Government guidelines.
PUBLIC PROCUREMENT POLICY FOR MICRO AND SMALL ENTERPRISES (MSEs) ORDER 2012
Your Corporation has taken steps for implementation of the Public Procurement Policy of
the Government of India for procurement from MSEs. All efforts are made to procure items
specified for procurement from MSEs. In addition, necessary provision has been made in all
the tenders stating the eligibility of MSEs to participate in the tender. As against the
target of 20 per cent for procurement from MSEs, the actual procurement of your
Corporation from MSEs during the year was 24.09 per cent (excluding crude oil & gas).
During the year, 54 vendor development programmes were conducted to develop small and
medium enterprises.
SUBSIDIARIES AND JOINT VENTURES
During the year, a new Joint Venture Company, viz. Ratnagiri Refinery and
Petrochemicals Limited between your Corporation, BPCL and HPCL was incorporated in Sept.
2017 for the purpose of setting up of 60 MMTPA Refinery and Petrochemical Project in
Ratnagiri district of Maharashtra. The equity holding of partners is IndianOil : 50 per
cent; BPCL : 25 per cent and HPCL : 25 per cent. Subsequently in April, 2018, an MoU was
signed between the JV Partners and Saudi Aramco to explore the possibilities of joint
development of the project with induction of Saudi Aramco as a strategic partner.
IndianOil CREDA Bio-fuels Ltd., a Subsidiary of the Corporation was wound-up during the
year and the name of the Company was struck-off from the Register of Companies by Ministry
of Corporate Affairs on 08.03.2018.
As required under the provisions of the Companies Act, 2013, a statement on the
performance and financial position of each of the subsidiaries and joint venture companies
is provided as an annexure to the Consolidated Financial Statement. The financial
statements of the subsidiaries have also been hosted on the website of the Corporation
i.e. www.iocl.com under ‘Financial Performance' section.
In accordance with the provisions of the SEBI guidelines, your
Corporation has framed a policy for determining material subsidiaries, which can be
accessed on the Corporation's website at the link https://www.iocl.com/InvestorCenter/
Policy_on_Material_Subsidiary.pdf
RELATED PARTY TRANSACTIONS (RPTs)
In line with the provisions of the Companies Act, 2013 and SEBI guidelines, a policy on
material RPTs has been framed, which can be accessed on the website of the Corporation at
link https:// www.iocl.com/InvestorCenter/Policy_on_related_party_ transactions.pdf. Your
Corporation has undertaken transactions with related parties during the year in the
ordinary course of business. In line with the RPT Policy, approval of the Audit Committee
& Board, as the case may be, were obtained for such RPTs. As per the threshold
mentioned in the policy, there was no material RPT during the year. The disclosures
related to RPTs in accordance with applicable accounting standards are provided at Note-37
of the Standalone Financial Statement.
The details of contracts or arrangements with related parties referred to under Section
188 (1) of the Companies Act, 2013 in the prescribed Form AOC-2 are attached at Annexure
-V of the report.
REPORT ON ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
In accordance with the provisions of the Companies Act, 2013 and rules framed
thereunder, the details relating to Energy Conservation, Technology Absorption and Foreign
Exchange earnings and outgo are annexed at Annexure-VI to the report.
PARTICULARS OF EMPLOYEES
The provisions of Section 197 of the Companies Act, 2013 and rules notified thereunder,
regarding particulars of employees drawing remuneration in excess of limits specified are
exempt for Government Companies.
BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL
The following changes occurred in the Board / Key Managerial Personnel of the
Corporation:-
Appointment
1. Shri Vinoo Mathur, Shri Samirendra Chatterjee, Shri Vivek Rae, Shri Chitta Ranjan
Biswal, Dr.Jagdish Kishwan, Shri Sankar Chakraborti, Dr.B.Mahadevan and Shri Dharmendra
Singh Shekhawat, were appointed as Independent Directors w.e.f. 22.09.2017.
2. Smt. Urvashi Sadhwani was appointed as Government Director w.e.f. 27.10.2017.
3. Shri B.V.Rama Gopal was appointed as Director(Refineries) w.e.f. 12.02.2018.
4. Shri Ranjan Kumar Mohapatra was appointed as Director(Human Resources) w.e.f.
19.02.2018.
5. Ms. Sushma Taishete Rath was appointed as Government Director w.e.f. 11.05.2018.
6. Shri Kamal Kumar Gwalani was appointed as Company Secretary and Key Managerial
Personnel w.e.f. 01.09.2017.
Cessation
7. Shri Verghese Cherian ceased to be Director (Human Resources) w.e.f.
01.11.2017 consequent upon his superannuation.
8. Shri B.S.Canth ceased to be Director(Marketing) w.e.f. 01.02.2018 consequent upon
his superannuation.
9. Dr. B. Mahadevan, Independent Director resigned from the Board of the Corporation
due to his pre-occupation on 19.03.2018.
10. Shri Anish Aggarwal ceased to be Director(Pipelines) w.e.f. 01.04.2018 consequent
upon his superannuation.
11. Smt. Urvashi Sadhwani ceased to be Director w.e.f. 11.05.2018 consequent upon her
elevation as Principal Adviser to MoP&NG.
12. Shri Vivek Rae, Independent Director resigned from the Board of the Corporation
w.e.f. 04.06.2018.
13. Ms. Sushma Taishete Rath ceased to be a Director w.e.f. 06.07.2018, consequent upon
her transfer from MoP&NG. 14. Shri Raju Ranganathan, ceased to be Company Secretary
and Key Managerial Personnel w.e.f. 01.09.2017 consequent upon his superannuation.
The Corporation has received the Certi_cate of Independence from all the Independent
Directors confirming that they meet the criteria prescribed for Independent Directors
under the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015.
A separate meeting of Independent Directors was held during the year as per provisions
of the Companies Act, 2013 and SEBI LoDR.
Shri G.K.Satish, Director(P&BD) is liable to retire by rotation and being eligible
is proposed to be re-appointed at the forthcoming Annual General Meeting.
A brief profile of the Directors proposed to be appointed / re-appointed at the
forthcoming AGM is provided in the notice of the AGM.
BOARD MEETINGS
During the year, 13 meetings of the Board of Directors were held. The details of the
meetings attended by each Director are provided in the Corporate Governance Report and
hence not repeated here to avoid duplication.
PERFORMANCE EVALUATION OF BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS
The provisions of Section 134(3)(p) of the Companies Act, 2013 require a listed entity
to include a statement indicating the manner of formal evaluation of performance of the
Board, its Committees and of individual Directors. However, the said provisions are exempt
for Government Companies as the performance evaluation of Directors is carried out by the
Administrative Ministry i.e. Ministry of Petroleum and Natural Gas (MoP&NG) as per
laid down evaluation methodology.
POLICY FOR SELECTION AND APPOINTMENT OF DIRECTORS AND THEIR REMUNERATION
The provisions of Section 134(3)(e) of the Companies Act, 2013 regarding the policy on
Directors appointment and remuneration including criteria for determining quali_cations,
positive attributes, independence of a Director and other matters provided in Sec 178(3)
are exempted for Government Companies.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant and material orders were passed by the regulators or courts or tribunals
that impact the going concern status of the Corporation and its operations in future.
VIGIL MECHANISM/WHISTLE-BLOWER POLICY
The Corporation has framed a whistle-blower policy wherein the employees are free to
report any improper activity resulting in violation of laws, rules, regulations or code of
conduct by any of the employees, to the Competent Authority or Chairman of the Audit
Committee, as the case may be. Any complaint received is reviewed by the Competent
Authority or Chairman of the Audit Committee as the case may be. The policy provides that
the con_dentiality of those reporting violations shall be maintained and they shall not be
subjected to any discriminatory practice. No employee has been denied access to the Audit
Committee. The policy on Vigil Mechanism/Whistle-Blower can be accessed on the
Corporation's website at the link https://www.iocl.com/
InvestorCenter/Whistle_Blower_policy.pdf
DETAILS OF LOANS/INVESTMENTS/GUARANTEES
Your Corporation has provided loans/guarantees to its subsidiaries/joint ventures and
has made investments during the year in compliance with the provisions of the Companies
Act, 2013. The details of such investments made and loans/guarantees provided as on 31st
March, 2018 are given in the Standalone Financial Statement under Notes 4, 5, 36 and 42.
EXTRACT OF ANNUAL RETURN
As required under the provisions of the Companies Act, 2013, the extract of Annual
Return for the financial year ended 31st March, 2018 in the prescribed form MGT-9 is
attached at Annexure-VII to this report.
COMPLIANCE WITH SECRETARIAL STANDARDS
Your Corporation complies with the applicable Secretarial Standards issued by the
Institute of Company Secretaries of India (ICSI).
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under clause (c) of sub-section (3) of Sec.134 of the
Companies Act, 2013 with respect to the Directors' Responsibility Statement, it is hereby
confirmed that:
(a) in the preparation of the Annual Accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
(b) the Directors had selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the company at the end of the financial year and of
the profit and loss of the company for that period;
(c) the Directors had taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013 for
safeguarding the assets of the company and for preventing and detecting fraud and other
irregularities;
(d) the Directors had prepared the annual accounts on a going concern basis; and
(e) the Directors had laid down internal financial controls to be followed by the
company and that such internal financial controls are adequate and were operating
effectively.
(f) the Directors had devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating effectively.
ACKNOWLEDGEMENTS
The Board of Directors would like to express its deep appreciation for the dedicated
and sincere efforts of the employees of the IndianOil family for the superlative
performance achieved during the year 2017-18. The Board would also like to thank the
Government of India, particularly the Ministry of Petroleum & Natural Gas as well as
the various State Governments, regulatory and statutory authorities for their valuable
guidance and support from time to time. The Board is also thankful to all its
stakeholders, including bankers, investors, members, customers, consultants, technology
licensors, contractors, vendors, etc., for their continued support and confidence reposed
in the Corporation. The Board would like to place on record its appreciation for the
valuable guidance and significant contribution made by Shri Verghese Cherian, Shri
B.S.Canth, Shri Anish Aggarwal, Dr.B.Mahadevan, Smt.Urvashi Sadhwani, Shri Vivek Rae and
Ms. Sushma Taishete Rath during their tenure on the Board of the Corporation.
|
For and on behalf of the Board |
|
(Sanjiv Singh) |
| Place: New Delhi |
Chairman |
| Date : 16th July 2018 |
DIN: 05280701 |
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