Indian Oil Corporation Ltd
Chairman Speech
Dear Members,
I hope you are doing well.
Inspired by Indianness
Reflections and Records
As I present IndianOil's Integrated Annual Report 2021-22, I am
reminded of the Company's first Annual Report, published in 1960. The modest report wrote,
"The Company shall build up facilities as may be warranted by the growing demand of
petroleum products (in India)". Back then, IndianOil did not have any petroleum
storage capacity. In that context, the Company's journey over the past six decades has
been a saga of phenomenal growth and unshakable faith to fuel the nation while rising
above every possible challenge.
Our teams have been continuously setting new benchmarks of business
excellence. Our ability to justify the faith reposed in us by the country, is deeply
satisfying for us . The year 2021-22 witnessed IndianOil registering record profits and
last year, We once again surpassed our best, by notching up the highest-ever revenue and
setting a record net profit. This stellar success in business numbers also validates our
sustained focus on fuelling the socio-economic aspirations of 'New India'. We are indeed
grateful for your unstinted support that gives us the strength to keep moving ahead and
fuels our spirit of service excellence.
At IndianOil, we take pride in being the 'Energy of India', and our
robust financials validate our determination to excel against all odds. In fact, during
2021-22, IndianOil's revenue from operations went up by over 41% compared to the previous
year, and our net profit went up by nearly 11%. This growth is remarkable, and to put it
in context, we must remember that even the year before, we notched up record numbers. This
is an extraordinary feat that will surely inspire Team IndianOil to aim for new benchmarks
of operational excellence in the coming years.
Challenges and Champions
As the year 2021-22 set in, the nation witnessed the ravaging second
wave of Covid-19. India's economy and health infrastructure reeled under the severe impact
of the virus. It took a series of inspired and coordinated endeavours from the Government
of India to reboot the nation. Let me proudly share that your Company led corporate
India's efforts to align with the initiatives of the Government in alleviating the strain
on the economy and citizens. From shoring up liquid medical oxygen supply in the country
to strengthening medical infrastructure, the IndianOil team went all out to accomplish the
mission.
As always, their humane face shone bright amidst extreme adversities.
The spirit of'Nation before Self' essentially defines our DNA, and it was illustrated
again as we diverted the commercial oxygen production from our petrochemical plant to
hospitals for medical use. These efforts were well acknowledged at every level giving us a
sense of deep satisfaction. More importantly, our focus on operational excellence remained
unwavering, and our energy soldiers ensured that even the country's remotest corners
remained energised. However, some of our lOCians and frontline energy warriors succumbed
to the menacing virus while serving the nation and I salute them for their contribution.
The memory of our Covid martyrs will be etched in the annals of the Company's history in
golden letters.
Optimised Operations
Call of Capex
Operational excellence is mostly about nurturing a team and a system
that can work together to rise above every challenge and chase greatness. Your Company
left no stone unturned to meet the high capital expenditure (capex) targets and rose above
every constraint even during the pandemic to meet these targets consistently. You'll be
happy to know that since 2018-19, IndianOil has contributed more than a quarter of the
combined capex spend of all Public Sector Undertakings (PSUs), under the Ministry of
Petroleum and Natural Gas. Last year was no exception as we replayed the success story and
met the target of Rs 29,347 crore, which is over 28% of the Ministry's overall outlay.
Rise of Refining
The ambitious capital expenditure caters to the fundamental tenets of
our future growth strategy, namely refinery expansion and petrochemical integration. Never
has IndianOil rolled out megaprojects of the magnitude that the Refineries Division is
witnessing now. As I write to you, projects worth more than Rs1 lakh crore are in various
stages of implementation. These mega projects will enhance the installed group refining
capacity of your Company from the current 80.55 million metric tonnes per annum (MMTPA) to
an estimated 107 MMTPA by the year, 2024-25.
Our journey towards a robust petrochemical presence is also witnessing
new highs every year. During 2021-22, our Naphtha throughput touched 3.0 MMTPA, about 28%
higher than the target. Your Company is India's second-largest petrochemicals player, with
a capacity of around 3.2 MMT. With various projects in the pipeline at Gujarat, Barauni,
Panipat and Paradip refineries, the present Petrochemical Intensity Index (Pll) of about
5% will go up to about 7% by 2025 and 15% by 2030.
The commissioning of the grassroot Mono Ethylene Glycol (MEG) plant at
Paradip, Phase-1 Naphtha Cracker expansion at Panipat and Linear Alkyl Benzene (LAB)
expansion at Gujarat Refinery will go a long way in enhancing your Company's
profitability. We are determined to ensure the timely completion of these projects and
leverage them to the best of our advantage.
I must add that our petrochemical forays will be critical catalysers
for IndianOil's growth engine and the memorandum of understanding (MoU) signed with the
Government of Gujarat in June 2021, reflects that validation. The MoU envisages setting up
the Petrochemical and Lube Integration (LuPech) Project and Acrylics/Oxo Alcohol Project
at Gujarat Refinery.
Pipelines Prowess
Our mammoth network of underground highways of more than 15,000 km is
all set to increase with the completion of the 1,200 km-long Paradip-Hyderabad product
pipeline. The Board has also approved the establishment of a 1,033 km-long Mundra-Panipat
crude oil pipeline with a capacity of 17.5 MMTPA to meet the enhanced crude oil
requirement of the Panipat Refinery, that is due for expansion from 15 to 25 MMTPA. We
have also commissioned the Dahej-Koyali dedicated Natural Gas Pipeline (106 km long, 5
MMSCMD capacity). The pipeline connects the Dahej LNG terminal of Petronet LNG Ltd. to the
Gujarat Refinery in Vadodara. This has enhanced IndianOil's self-sufficiency in pipeline
operations.
Marketing Milestones
Our ambitious infrastructural investments are bound by two key focus
areas — ensuring India's energy security and constantly delighting our invaluable
customers. Adding to the bouquet of
customer-centric initiatives, we launched XP95 in May 2021, the
best-in-class branded fuel (with 95 Octane specification), that is not only more powerful
and efficient than normal petrol but is also competitively priced. The fuel is available
at 7,805 fuel stations across the country (till July 2022). We also rolled- out XTRAGREEN
diesel in July 2021, and at the end of July 2022, the lower emission fuel is being sold at
1,078 fuel stations across India. Such innovative offerings ensure IndianOil has the most
enriched product basket to cater to the preferences of every section of customers.
More importantly, we are ushering in a series of initiatives that
infuse greater agility into our customer service. One such example is the Indane Tatkal
Seva that was rolled out in January 2022 for our customers to avail guaranteed LPG
delivery within two hours of booking at a nominal fee. The facility has been launched in
Hyderabad and will soon be extended across the country. Another addition to this bouquet
is the Indane Family
Connect, where customers can book refill cylinders on behalf of family
members or friends across India. Earlier, the 'Missed Call' facility for Indane refill
delivery as well as for obtaining a new connection was launched in January 2021 making the
process quite convenient. I would like to share another significant feat of your Company,
wherein IndianOil released 50 lakh LPG connections under the Pradhan Mantri Ujjawla Yojana
2.0, before the target date of March 31, 2022.
Amid these accomplishments, fuel retailing remains our prime focus
area, and we are determined to make concerted efforts to retain our market leadership,
both through network expansion and enhanced throughput per pump. We have commissioned
2,521 fuel stations during 2021-22, taking the total tally to 34,559, including the Kisan
Seva Kendra. In a bid called by the National Highway Authority of India (NHAI) for wayside
amenities (WSA), IndianOil secured 10 out of 20 sites in the strategic greenfield
Delhi-Mumbai Expressway, reinforcing your Company's presence along major corridors.
It is also heartening to share that we have kept our foot firmly on the
digital accelerator to continuously deliver enhanced customer delight. One such shining
example is the IndianOil XTRAREWARDS - Google Pay retail collaboration that was launched
in September 2021. This synergy has enabled us to enrol GPay customers in the fold of our
loyalty programme and enhance brand loyalty of our retail customers.
I am happy to share that our teams have been at their innovative best
while creating new benchmarks of excellence in this sector. Taking the vision forward, we
have introduced 'differentiated diesel with green combo lubes' that offer higher fuel
efficiency with lower emissions. IndianOil has also begun trials of low-sulphur,
low-aromatic kerosene with the Indian Army. We also commenced the dispatch of common
winter- grade diesel from Leh and Kargil for the retail market. I am happy to share that
our revamped storage depot and fuel stations at Kavaratti and Minicoy in Lakshadweep
Islands were inaugurated in March 2022. IndianOil is the sole fuel supplier in the islands
which reaffirms the trust that the Government and people of India have reposed in the
capabilities of IndianOil.
Robust R&D
The year was quite special for IndianOil R&D Centre, which
celebrated its Golden Jubilee on March 10, 2022. Throughout its 50 years journey, the
Centre has set several benchmarks of innovation and excellence that have transformed
IndianOil's forays and the overall Indian energy landscape. True to this spirit, the
R&D Golden Jubilee celebrations culminated in a grand finale on March 22, 2022 at
Vigyan Bhawan, where we launched the pathbreaking 'Surya Nutan' solar cooktop. It was a
reiteration of our business strategies being in complete alignment with the national
priorities. The patented cooking solution is green, cost-efficient and can be a
gamechanger for the benefit of the masses.
Power Partners
We are also pursuing synergistic collaborations to explore new avenues
of opportunities. The brightest of such partnerships is the Hindustan Urvarak and Rasayan
Limited (HURL), where we have joined hands with other PSUs, namely, NTPC Ltd., Coal India
Ltd., The Fertilizer Corporation of India Ltd., and Hindustan Fertilizer Corporation Ltd.,
to develop three gas- based urea fertiliser plants at Gorakhpur, Barauni and Sindri.
These plants will augment domestic fertiliser production capacity by
producing over 38 lakh Tonnes of neem-coated urea per annum. In December 2021, the
Gorakhpur plant was dedicated to the nation by the Hon'ble Prime Minister. The other two
plants at Barauni and Sindri are also in an advanced stage of completion.
Cheering for Green
Hi-Five to Hydrogen
Green captures the essence of today's energy world. The concerns over
global warming, melting ice caps, shifting ocean currents and crop-destroying heat waves
are far too real and palpable today, as compared to what was even a few years back. The
environmental concern just no longer looms over our future but has started affecting our
present. 'Green' is the word driving the priorities of the energy sector worldwide.
India's green agenda, including achieving net zero emission target by 2070, continues to
be an inspiring force as far as our future strategies are concerned.
To meet the net-zero commitment, the Indian Government has announced
the Green Hydrogen and Ammonia Policy to boost green hydrogen production to 5 MMT by 2030
and make India an export hub for this clean fuel. As the 'Energy of India', your Company
is committed to leveraging this policy support to power India's march towards the new
energy frontiers of tomorrow.
Aligning with the national priority, IndianOil will be producing green
hydrogen in stages at the Mathura and Panipat refineries. As a first step, we will be
implementing a 5 KTA (40 MW) green hydrogen plant at Mathura Refinery and a 2 KTA (16 MW)
plant at Panipat Refinery. To sync with the entire hydrogen value chain, IndianOil has
forged crucial collaborations to develop green hydrogen production assets, associated
renewable assets and manufacture electrolysers. This will be a gamechanger as
electrolysers contribute to approximately 30% of the overall cost of green hydrogen. Due
to the policy interventions by the Government of India, we foresee strong momentum in the
electrolysers market and renewable power, with a commensurate decline in the cost of
production of green hydrogen. Your Company is also exploring multiple hydrogen production
pathways, including solar electrolysis, biomass gasification and bio-methanation. The
hydrogen produced will be used for fuelling 15 fuel cell buses to establish the efficacy,
efficiency and sustainability of the fuel cell technology and hydrogen production
processes. In addition, we will commission a hydrogen dispensing station at the Gujarat
Refinery to enlarge hydrogen-based mobility coverage.
Greater Aspirations Greener Avenues
Let me reiterate thatyour Company is already the leading voice in the
Indian energy sector, even in endeavours related to the immediate future. Our aggressive
approach in the 11th round of the City Gas Distribution (CGD) bidding process
reflected this resolve as we secured 9 high market potential geographical areas (GAs)
covering twenty six districts across the country. IndianOil, along with its JV companies,
is now present in forty nine GAs. We are now poised to emerge as a dominant player in the
Indian CGD market.
We have also sharpened our focus on bioenergy and renewables. Under the
ambitious SATAT scheme on CBG (Compressed Biogas), IndianOil has awarded over 2,374
letters of intent (LOI) till July 2022, and is now marketing CBG from eighteen plants
through thirty one fuel stations spread across nine states in the country.
Let me also touch upon electric vehicles (EVs), which may bring in a
paradigm change in the mobility ecosystem across the globe. We target to provide EV
charging stations (EVCS) at 10,000 fuel stations in the next three years. As a strategic
initiative, your Company is pursuing the setting up of EVCS at public parking spaces at
airports and tourist places.
Your Company is also exploring new technologies in the battery
development sector. The joint venture (JV) of IndianOil and the Israeli technology
company, Phinergy, has been working on the manufacture and commercialisation of
aluminum-air technology in India. Taking this forward, a tripartite agreement was recently
inked among IOC Phinergy Private Limited, (IOP), Hindalco Industries Limited, India's
leading aluminum producer, and Phinergy Ltd. for R&D and pilot production of aluminium
plates for the batteries, and recycling of aluminium, after usage in these batteries.
As your Company continues to enhance the green quotient of its
refineries, IndianOil has signed an agreement with NTPC Ltd. to form a joint venture
company to meet the power requirements of upcoming projects at IndianOil's refineries.
In another significant development, IndianOil and Praj Industries Ltd.
signed a memorandum of understanding (MoU) on October 20, 2021, to explore and collaborate
on business opportunities in the biofuels arena, including CBG, Sustainable Aviation Fuel
(SAF), Biodiesel, Ethanol, and so on, through the formation of a JV company in India.
Nuturing Nature
I must add that our environment and sustainability focus extends well
beyond business-related endeavours. Due to reckless exploitation, excessive hunting and
inadequate protection laws, the cheetah was driven to extinction in India over seven
decades ago. To reintroduce the cheetah to its natural habitat in India, IndianOil is
collaborating with National Tiger Conservation Agency (NTCA) to undertake a historical
project. This unique project involves transcontinental relocation (from South Africa and
Namibia) of cheetahs to Kuno National Park in Madhya Pradesh. Your Company is
collaborating with NTCA to take this initiative forward. In line with this spirit, we
launched the Rhino as our mascot that stands tall as IndianOil's commitment to protecting
India's biodiversity.
Lives Enriched Beyond Business
Cornerstone of Care
As a brand with one of the most extensive customer interfaces in India,
corporate stewardship is not a business obligation, but a stepping-stone towards enduring
excellence for your Company. I'm reminded of the Dalai Lama who once said, "More
compassionate mind, more sense of concern for other's well-being, is source of
happiness".
In the last three years, we have supported projects covering areas such
as skilling and education, health care, and, environment and sustainability. IndianOil has
also been in the forefront as far as the initiatives of corporate India are concerned, and
has been steering the 'Skill India' revolution. We took a major leap as the permanent
campus of IndianOil- run Skill Development Institute, Bhubaneswar, was inaugurated on
August 20, 2021.
Speaking of healthcare, cancer care has been one of our key focus
areas, and over the next 3 to 5 years, we will be contri buting significantly to bolster
India's cancer care infrastructure. Recently your Company aided the implementation of the
Phase-2 expansion of Tata Medical Centre in Kolkata. In addition, we are planning to
support the Indian Institute of Science (lISc), Bengaluru for their upcoming Medical
Hospital & Research Centre, including setting up an oncology wing.
Tuberculosis (TB) continues to be one of India's severest health
challenges. Considering the national importance of this challenge, IndianOil has committed
to support the NationalTB elimination Programme (NTEP) in each of the 75 districts of
Uttar Pradesh and 23 districts of Punjab. The programme's key objective will be to screen
and test the entire population of UP and Punjab every year for the next 3 years, to help
India eradicate the disease by 2025.
Strengthening Sports
IndianOil has consistently walked the extra mile to revitalise India's
sporting landscape. You would recall that IndianOil's remarkable sporting contributions
were acknowledged at the highest level when your Company were bestowed with the 'Rashtriya
Khel Protsahan Puraskar' for 2021. It was an honour for me to accept the award from the
Hon'ble President of India at Rashtrapati Bhawan last November on behalf of your Company.
IndianOil also received the 'Sportstar Aces Award, 2022' under the category of the 'Best
PSU for the Promotion of Sports'. Such accolades and recognitions strengthened our resolve
to walk the extra mile to support Indian sporting excellence. Speaking of sporting
excellence, IndianOil inducted 9 women hockey players into the IndianOil family on
International Women's Day, 2022. This was a momentous occasion as IndianOil emerged as the
first Indian corporate with a full-fledged Women's Hockey Team. IndianOil will also
collaborate with the Ministry of Youth Affairs and Sports for a unique programme,
'IndianOil Shakti', to extend comprehensive support to talented young girl athletes.
More importantly, we have extended our focus on sports to reach out to
the acutely disadvantaged sections of society. As the nation celebrated its 75th
Independence Day on August 15, 2021, IndianOil embarked on an extraordinary journey
through a unique programme, 'Parivartan —Prison to Pride', for a radical social
transformation through the powerful medium of sports. Under this scheme, the galaxy of
IndianOil sportspersons teamed up with external coaches and encouraged prison inmates to
cultivate their sporting interests. The campaign was an exemplary demonstration of our
core value of Care and has touched the lives of over 1,750 inmates from 37 prisons across
the nation, till now. The journey has been deeply satisfying and has strengthened our
commitment to power more such endeavours in the days ahead.
Towards a Better Tomorrow for All
Our energy requirements in the coming years are bound to grow as there
is a need to bridge the energy access deficit in the country equitably and efficiently.
So, oil and gas will continue to be the mainstay of your Company's operations at least for
the next two to three decades and our core business will continue to play a defining role
in crafting your Company's destiny. Team IndianOil is determined to strengthen our grasp
as market leaders by focusing on two essential factors, service quality and the width and
depth of our product offerings. As I already mentioned, your Company is geared up for the
inevitable energy transition while dealing with fierce competition in our traditional
business line.
IndianOil is poised for a great future. We have everything going our
way — an energetic team, vast resources, R&D prowess, an operational and
marketing network par excellence, and a strong financial position.
At IndianOil, we have always chosen values over profits and Nation over
corporate gains. More importantly, our actions as a social enterprise speak louder than
words in terms of our priorities that extend beyond the realm of business. Your Company is
committed to carrying forward every business endeavour in a free, fair, and transparent
manner. Let me emphasise that our core values of Care, Innovation, Passion and Trust will
continue to guide us in the journey ahead.
Once again, thank you for your unstinted support that has been your
Company's greatest strength and an eternal source of inspiration to take IndianOil towards
a more prosperous future. We are committed to energising a nation and a world where
happiness and peace thrive. As the great Nelson Mandela said, "What counts in life is
not the mere fact that we have lived. It is what difference we have made to the lives of
others that will determine the significance of the life we lead."
| Stay healthy, stay safe! |
| sd/- |
| Shrikant MadhavVaidya |
| Chairman |
  Â
Indian Oil Corporation Ltd
Directors Reports
Dear Shareholders,
It gives me immense pleasure to present the 63rd Annual
Report and the Fifth Integrated Annual Report of the Company for the financial year ended
March 31, 2022, along with the Audited Standalone and Consolidated Financial Statements
and Auditor's Report thereon on behalf of the Board of Directors of the Company.
The year 2021-22 was remarkable for IndianOil both in terms of
challenges and opportunities. The uncertainties on crude prices coupled with wide demand
fluctuations further reiterated the fact that agility and innovations are the keys to
survival and sustenance in today's complex business environment. IndianOil navigated
through the Covid-19 pandemic induced plummeting product demand with innovative
strategies, launch of new products and by optimising its functions across the value chain
from crude procurement to product positioning.
Through the course of this tumultuous journey, IndianOil remained
committed to ensuring uninterrupted supply of fuel. Every lOCian and members of the
extended IndianOil family reinforced service excellence and ensured that there was no
panic over fuel availability across the country. Going beyond the call of duty, the
Company worked on supply of the lifesaving liquid medical oxygen with the best possible
logistic solutions leveraging our expansive supply chain.
Performance Review
Financial
The Company reported the highest Revenue from Operation by any Indian
company at Standalone as well as Consolidated Financial Statement level for the financial
year 2021-22 which is also its highest ever achievement. The Company also registered its
highest ever net profit.
The summarised standalone performance and appropriations for 2021-22
are given below:
| Particulars |
2021-22 |
2020-21 |
|
US$ Million |
Rs crore |
US$ Million |
Rs crore |
| Revenue from Operations |
97,767 |
7,28,460 |
69,374 |
5,14,890 |
| (Inclusive of Excise Duty & Sale of Services) |
|
|
|
|
| EBITDA |
6,384 |
47,568 |
5,742 |
42,614 |
| (Earnings Before Finance Cost, Tax, Depreciation &
Amortisation) |
|
|
|
|
| Finance Cost |
648 |
4,829 |
417 |
3,094 |
| Depreciation and Amortisation |
1,477 |
11,006 |
1,321 |
9,804 |
| Profit Before Tax |
4,259 |
31,733 |
4,004 |
29,716 |
| Tax Provision |
1,013 |
7,549 |
1,062 |
7,880 |
| Profit After Tax |
3,246 |
24,184 |
2,942 |
21,836 |
| Interim Dividend paid |
1,109 |
8,263 |
1,299 |
9,640 |
| Final Dividend paid |
185 |
1,377 |
- |
- |
| Appropriation: |
|
|
|
|
| Insurance Reserve (Net) |
3 |
19 |
1 |
11 |
| General Reserve |
1,949 |
14,524 |
1,642 |
12,185 |
| Balance Carried to Next Year |
- |
- |
- |
- |
The macro-economic, geo-political, financial, industry-specific
information and markets in which the Company operates are provided in the Management
Discussion and Analysis section, which forms a part of this Integrated Annual Report.
Issue of Securities / Changes In Share Capital
There was no change in the equity share capital of the Company during
the year. However, in July 2022, your Company issued bonus equity shares in the ratio of
1:2, i.e., one bonus equity share for every two equity shares held.
Further, the Company also issued Unsecured, Rated, Listed, Taxable,
Redeemable, Non-Convertible Debentures (NCDs) aggregating to Rs 1,500 crore on private
placement basis, during the year, which were listed on the Debt Segment of the NSE and
BSE. The funds were utilised for the purpose for which they were raised and there were no
deviations or variations in the utilisation.
Dividend
The Board of the Company has formulated a Dividend Distribution Policy
and the dividends declared / recommended during the year were in accordance with the said
policy. The policy is hosted on the website of the Company at: https://www.iocl.com/
download/Dividend-Disribution-Policy, pdf
During the year, the Company paid a first interim dividend of Rs 5.00
per share and a second interim dividend of Rs 4.00 per share on the pre-bonus equity
capital. In addition, the Board of the Company has recommended a final dividend of Rs 3.60
per share (pre-bonus equity capital) for the year, thereby taking the total dividend for
the year to Rs 12.60 per share (prebonus equity capital) with a total pay-out of Rs
11,568.10 crore equivalent to 47.83% of the PAT.
This is the 55th consecutive year of dividend declaration by
the Company with cumulative pay-out ofRs 86,505 crore (including the proposed final
dividend for the year 2021-22).
Contribution to Exchequer
Over the years, the Company has been the largest contributor to the
Government exchequer in the form of duties, taxes, and dividend. During the year Rs
2,64,436 crore was paid to the exchequer as against Rs 2,38,786 crore paid in the previous
year, an increase of 11% over the previous year. An amount of Rs 1,57,181 crore was paid
to the Central Exchequer and Rs 1,07,255 crore to the States Exchequer compared to Rs
1,53,827 crore and Rs 84,959 crore paid in the previous year, respectively.
Consolidated Financial Performance
In accordance with the provisions of the Companies Act, 2013, and the
Accounting Standards issued by the Institute of Chartered Accountants of India, the
Company has prepared the Consolidated Financial Statement for the group, including
subsidiaries, joint venture entities and associates. The highlights of the Consolidated
Financial Results are as under:
| Particulars |
2021-22 |
2020-21 |
|
(US$ Million) |
(Rs crore) |
(US$ Million) |
(Rs crore) |
| Revenue from Operations (Inclusive of Excise Duty & Sale
of Services) |
98,877 |
7,36,731 |
70,094 |
5,20,237 |
| Profit Before Tax |
4,602 |
34,289 |
4,143 |
30,751 |
| Profit After Tax |
3,453 |
25,727 |
2,932 |
21,762 |
| Less: Share of Minority |
84 |
625 |
17 |
124 |
| Profit for the Group |
3,369 |
25,102 |
2,915 |
21,638 |
Note: Exchange Rate used
For 2021-22: Average Rate 1 US$ = Rs 74.51
For 2020-21: Average Rate 1 US$ = Rs 74.22
Operational Performance
The operational performance of the Company during the year was as
under:
| Particulars |
2021-22 1 |
2020-21 |
| Refineries Throughput |
67.67 |
62.35 |
| Pipelines Throughput |
83.25 |
76.02 |
| Product Sales (inclusive of Gas, Petrochemicals &
Exports) |
86.41 |
81.03 |
Refineries
The demand destruction during Covid-19 was a global phenomenon and
India was not an exception to it. Postremoval of Covid-19 restrictions, the demand for all
petroleum products started peaking, which resulted in refineries operating at 107.6% of
the installed capacity in February 2022 and 111.6% in March 2022, with overall capacity
utilisation of 96.6% during the year.
Capacity Utilisation (%)
The refineries achieved a total throughput of 67.67 MMT during the year
as against 62.35 MMT in 2020-21. In addition, Chennai Petroleum Corporation Limited, a
subsidiary of IndianOil, achieved a throughput of 9.04 MMT during the year, thereby taking
crude throughput of IndianOil group refineries to 76.71 MMT during 2021-22.
Throughput (in MMT)
The Distillate Yield of refineries during the year was 79.2% as
compared to 79.4% during the previous year. The Fuel & Loss improved to 9.5% during
the year from 9.8% during 2020-21. On the Energy Conservation front, the refineries
recorded MBN of 73.9 and Energy Intensity Index (Ell) of 104.1. The refineries achieved
96.8% Operational Availability. Mathura Refinery achieved best ever MBN of 62.2 for
2021-22.
Distilled Yield (%)
The Petrochemical units posted encouraging numbers, with Naphtha
throughput touching 3.0 MMT as compared to 2.67 MMT during the previous year. The overall
polymer production (Polyethylene + Polypropylene) clocked 1.76 MMT, while overcoming high
stocks (due to low dispatches) and low feed availability from reduced refinery operations.
Your Company achieved the highest ever Polypropylene production of 1.138 MMT during the
year against previous best of 0.93 MMT.
Naptha Throughput (in MMT)
Amidst the uncertainties, the refineries exhibited stellar resilience.
The consistent thrive for excellence in quality management got another boost with the
commissioning of fuel quality upgradation projects like Naphtha Hydrotreater Unit at
Bongaigaon Refinery, Gasoline Hydro Desulfurization Unit at Gujarat Refinery and Naphtha
Hydro Treater - ISOM unit at Guwahati Refinery during the year. For reduction of Nitrogen
Oxide (NOx) emissions from diesel vehicles, Diesel Exhaust Fluid (DEF) plants were
commissioned in Gujarat, Barauni, Panipat & Guwahati.
Bongaigaon Refinery became the 1st Refinery in North East
region to supply Ethanol Blended Motor Spirit (EBMS) in August 2021 followed by Gujarat
and Guwahati Refineries. EBMS is also being produced at Mathura, Panipat and Barauni
Refineries since 2019-20. Panipat Refinery successfully developed BS-VI compliant Diesel
with High Pour Point (DHPP), which does not lose its fluidity, for military usage in
extreme cold conditions of Leh and Ladakh.
Seven new crude oil grades were included in the crude oil basket of the
Company increasing its size to 210 crudes. Apart from increasing the share of North and
South American crude oil grades to ~9 % in 2021-22, the percentage of total imported heavy
High Sulphur crude also increased from 15.7% to 21.5% during the year, thereby increasing
the flexibility in operations.
Your Company also commenced Grid power import under open access at
Bongaigaon Refinery from June 2021. Parallel operation of Captive Power Plant with the
220kV grid has also been commenced at Gujarat Refinery for enhanced reliability and
development of infrastructure for bulk power import at Barauni, Mathura, Panipat, Paradip
is in progress.
In line with the National Vision of Energy Security and the Paris
Agreement, your Company has completed the Feasibility study for one of its refineries for
emission mitigation for combating climate change and involving the injection of carbon
dioxide into oil reservoirs for enhanced oil recovery (EOR). It is also putting up Carbon
Capture, Utilisation and Storage (CCUS) for production of food grade C02 for
Food and Beverage Industry from the vent streams at two of its refineries.
Pipelines
As an integrator of the business ecosystem of the Company, the
Pipelines Division continued its pursuit of excellence during the year. As on March 31,
2022, the length of the pipeline network was 15,113 km with a capacity of 96.06 MMTPA
(crude & product pipelines) and 27.82 MMSCMD (gas pipelines).
During theyear, the liquid as well as gas pipelines demonstrated better
performance compared to the previous year. The crude oil pipelines, operating at 100%
capacity, achieved a throughput of 48.53 MMT; the product pipelines, operating at 73%
capacity, achieved a throughput of 34.72 MMT and gas pipelines, operating at 37% capacity,
achieved the highest ever throughput of 2985 MMSCM. By adopting technologically driven
initiatives, the specific energy consumption in pipeline operations reduced from 13.31 to
12.74 KCAL/(MT*KM).
Crude Pipeline Throughput (in MMT)
Significant initiatives [ike transportation of Ethanol Blended Motor
Spirit (E10) in cross-country Pipelines, handling dual grade LPG in cross-country
pipeline, etc. were implemented during the year which not only resulted in improvement of
pipeline performance but also savings in logistic cost. 'Make- in-lndia' initiative
received a fillip with indigenously developed Drag Reducing Additive (DRA), namely
"XTRAFLO", in the pipelines to improve the movement of products as well as to
reduce the energy consumption.
During theyear, 106 km long Dahej - Koyali refinery R-LNG pipeline was
commissioned and the Chennai - Trichy - Madurai product pipeline was augmented from
existing 2.3 MMTPA to 3.9 MMTPA.
Marketing
Your Company steered past all the challenges arising due to the
onslaught of Covid-19 pandemic and maintained its leadership position in the industry with
an overall market share of 40.8%. Sales volume of Petroleum Products was 73.74 MMT during
the year as against 69.35 MMT in the previous year.
Sale of Petroleum Products (MMT)
During the year, your Company commissioned 2521 retail outlets, 435 CNG
stations and eight CBG stations, consistently building a formidable network infrastructure
totalling to 34559 retail outlets, 1488 CNG stations and 26 CBG stations, spreading its
reach further for the benefit of customers and business at large. The growing
infrastructure and services are consistently ensuring unhindered supply of not only
essential products but also value-added and branded ones for a complete transactional
experience.
Retail Outlet + Kisan Seva Kendra Commisionings
Your Company also developed 129 SWAGAT brand of niche and unique retail
outlets for its highway customers for a complete service experience of quality fuel, food,
rest, and other basic specific requirements, offering a perfect opportunity to rest,
recharge and refresh.
The LPG business, continued its commitment towards distribution of
'fuel of the masses', surpassing the previous year performance with an outstanding highest
ever sale of 13.66 MMT during the year and registered a growth of 2%. As a preparation to
meet the growing LPG demand, your company commissioned greenfield LPG plants at Agartala,
Korba, Jabalpur and Gwalior during the year taking the tally of total LPG locations to
101.
To further strengthen the customer reach, 106 LPG distributorships were
commissioned during the year, taking the total number to 12813. Your Company's unique and
path breaking initiative of new age composite cylinders launched last year, was bolstered
by supply of more than 30,000 composite cylinders in 152 markets.
Your Company's focus towards customer-care got accentuated by way of 10
new customer centric initiatives during the year including release of new connections
through missed call as well as over the counter. The initiative of "new connection
through Missed call" was a step forward in the digital world as it removes the need
to visit a distributor and prospective customers can get a new LPG connection by just a
missed call. Doorstep Double Bottle Connection (DBC) was started wherein a customer can
take a double bottle connection with the choice of either 5 kg or 14.2 kg cylinder
delivered by their delivery personnel. Your Company also commenced Indane Tatkal Seva - a
two-hour refill delivery with a nominal tatkal charge.
Indane XTRATEJ, the differentiated LPG with nano-additives for enhanced
performance, achieved a sale of 112.6 TMT during the year. The sale of 5-kg cylinder
"Chhotu" registered a phenomenal growth of over 30% during the year. The Company
continued to play its pivotal role in the implementation of Ujjwala 2.0 Scheme by
releasing 50 lakh connections during the year, well ahead of timelines set by MoP&NG.
In the aviation business, the Company strongly maintained its sky-high
leadership position during the year with a formidable market share of 62.5%. To further
strengthen its reach and leadership position, your Company commissioned nine new aviation
fuel stations (AFSs) during the year, at Tezu, Ratnagiri, Sindhudurg, Jabalpur, Hosur,
Keshod, Gwalior, Rajahmundry and Campbell Bay, building its network to 126 AFSs across the
vast geographical spread of our country.
The Company continued to drive its business initiatives by signing long
term tie-up with major customers both in Government and private sectors like Indian
Railways, Defence Forces, Tata Group, Aditya Birla Group and many more. IndianOil TOTAL
Pvt. Ltd., a JV of IndianOil, commenced marketing of value-added bituminous products from
its plants at Jodhpur, Chennai and Kolkata, giving your Company sizable competitive
advantage with the expansion of its product basket.
The grassroot POL Terminals at Motihari in Bihar and Asanur in Tamil
Nadu were mechanically completed, thus augmenting the Company's infrastructure. The
terminal at Motihari has state-of-the-art fully automated facilities with a storage
capacity of 70,000 KL and dispatch support of 12 bay TLF Shed. The terminal at Asanur has
storage capacity of 80,870 KL and despatch support of eight bay TLF Shed. Besides,
grassroot rail-fed depots at Guntakal and Moinarband were also commissioned. Guntakal
Depot with an area of 83 acres has a tankage of 51,000 KL, while Moinarband Depot spread
over 55 acres has a tankage of 29,990 KL.
In keeping with the nation's thrust on eco-friendly fuels, 9.18% of
Ethanol blending with Motor Spirit was done during the Ethanol Sugar Year (November 2020 -
October 2021). This was against 6.87% in the previous year.
Your Company with its unstinted commitment towards enhancing customer
experience at its retails outlets, implemented some innovative Integrated Transaction
Processing Server (ITPS) solutions during the year. Integration of cashless transactions
with actual delivery of product; acceptance of payment through FASTag; integration of
urban loyalty program XTRAREWARDS with PayTM, PhonePE and Google Pay; cashless mode 'Queue
Buster' for 2-wheeler customers; etc.
Looking ahead, IndianOil tied-up with various companies viz. NTPC,
PGCIL, REIL, Fortum, Tata Power, Ola, Hyundai, Tech Mahindra, BHEL, Sun Mobility and set
up charging facilities at 2145 retail outlets & battery swapping facilities at 34 ROs,
as on 31.03.2022, thus, taking the foundation steps to build your Company's strength in
this future landscape of alternate fuels.
SERVO, India's most preferred and trusted lubricant brand, marked its
50th year in January 2022. Despite the fallout of Covid-19 pandemic, SERVO
registered its highest ever sales volume of 637 TMT during the year with phenomenal growth
Your Company launched some very innovative products like SERVO
Greenmile (premium petrol engine oil) and SERVO Raftaar (premium diesel engine oil), which
have the potential to reduce carbon footprint by 10%; SERVO Defrost, first Indian product
to offer defrosting solution for vehicle operating in temperatures up to 14?C; XTRAGUARD,
a nano-technology based surface disinfectant spray; during the year. SERVO brand also
expanded into the wind lubricant business with supply of SERVOmesh Windmill Turbine Oil.
During the year, approval for 41 SERVO grades was obtained from
Original Equipment Manufacturers (OEMs) like TATA Motors, Ashok Leyland, Cummins, Skoda
Volkswagen, MG Motors, Mahindra & Mahindra, Hyundai, Fiat, Munjal Showa, Hero
MotoCorp, etc. SERVO expanded its footprint to Thailand, Burundi-East Africa and
Philippines; and is now available in 35 countries worldwide.
The cryogenics group of the Company maintained its leadership position
and sold over 31,000 units of cryo-cans and 51 Cryogenic vessels during the year. Aiming
to become a major player in LNG business, the group also initiated setting up 14 Nos of
LNG retail outlets on the highways. The group also manufactured 41 aviation refuellers, 22
aviation containerised tanks with module and 2 Hydrant Dispensers.
Research and Development
IndianOil's R&D Centre plays a key role in the efforts towards
'AtmanirbharBharat' by developing cost effective, environment friendly & socially
responsible technology solutions. Cutting edge research is carried out in core areas like
fuels & lubricants, refining technologies & catalysts, petrochemical &
polymers. The R&D efforts in sunrise areas like Nano, Solar, Bioenergy, Hydrogen and
Fuel Cell provide the much-needed future direction.
During the year, R&D crossed another milestone of 1500 patent
filings. With a portfolio of 1519 patents filing and 1410 effective patents as of March
31, 2022, the R&D Centre has doubled its granted patent portfolio in last 5 years.
Despite challenges on account of Covid, the R&D Centre could file 225 patents, the
highest in its history, and 155 patents were granted during the year.
Moving towards self-reliance in fuel upgradation technologies,
Performance Guarantee Test Run (PGTR) of 1.2 MMTPA grass- root indeDiesel? unit at Haldia
Refinery for BS-VI Diesel & 35 kTA grass-root INDAdeptG unit at Guwahati Refinery for
BS VI production were successfully completed meeting all the specified guaranteed
parameters. The 3rd INDMAX unit was successfully commissioned at Bongaigaon
Refinery and the INDMAX technology was also licensed to Numaligarh Refinery Limited, which
has established IndianOil's position as a technology provider. A 235 kTA grass-root
indDSN? unit using in-house developed hydrotreating catalyst INDICATFlexi was
successfully commissioned at Bongaigaon refinery. 377 MT of in-house developed
INDICATPrime DHDT catalyst was manufactured and supplied for DHDT unit of Gujarat
Refinery. R&D Centre has also crossed the milestone of 10000 MT of catalyst sale based
on in-house developed recipes.
As a transient solution towards hydrogen economy, a HCNG demonstration
project was undertaken by IndianOil R&D in Delhi jointly with Indraprastha Gas Limited
on 50 BS IV compliant CNG buses using HCNG fuel produced from four TPD compact reformer
plant based on in-house developed technology. The results of the trial, which are found to
be quite promising and in-line with claims, have been submitted to MoP&NG.
The R&D Centre also spearheads IndianOil's Start-Up scheme which
has seen incubation of 24 start-ups in two rounds of funding. IndianOil is closely
involved in mentoring the startups through handholding by internal Process Owners till
achievement of Proof-of-Concept. To continue the momentum of encouraging Start-ups, the 3rd
round was also launched during the year. A milestone of 50 IPs (Patents, Trademarks,
Copyrights) was achieved during 2021-22 for StartUp Scheme.
Business Development
Over the last few years IndianOil has assiduously created new business
verticals like petrochemicals, natural gas marketing, alternative energy, exploration
& production etc. with an objective to achieve integration with the core verticals as
well as to take on the challenges emerging due to the ongoing energy transition. The
performance of various business verticals during the year was as under:-
Petrochemicals
Your Company is the second largest petrochemicals player in the country
offering polymers, Linear Alkyl Benzene (LAB), Purified Terephthalic Acid (PTA), Glycols
and Butadiene. The brand, PROPEL, is a leading brand in the Indian petrochemicals market.
In total, the Company's portfolio now consists of 49 GAs of which 26
are standalone and 23 are through Joint Venture Companies, i.e, 19 through IndianOil Adani
Gas Private Limited and four through Green Gas Limited. All the 23 GAs are operational and
work continues for expansion of CGD network. Out of the Company's 26 standalone GAs, eight
GAs have been commissioned and commissioning of balance GAs is progressively planned.
Exploration & Production (E&P)
The Company continues to explore opportunities in the E&P sphere
through Participating Interests (PI), joint ventures and wholly owned subsidiaries. The
upstream portfolio consists of nine domestic & 11 overseas assets, of which eight
assets are producing (one domestic, seven overseas). Apart from the producing assets, four
assets are under development, four assets have discovery, one asset is under appraisal and
three assets are under exploration.
During the year, the production from the producing assets rose to 4.26
Million Metric Tonne of Oil Equivalent (MMToe), registering a 9.8% growth over the
previous year. The Company plans to scale up its production in the coming years with a
target of achieving 11 MMTPA production by the end of the decade. The Company also plans
to expand its upstream footprint to target approximately 10% upstream integration ratio by
2030.
As part of domestic acquisition efforts, during the year, the Company
initiated farming-in five exploration blocks awarded to OIL in OALP-III & OALP-V Bid
Rounds.
In Company's first overseas operatorship asset, Block-1, Abu Dhabi,
appraisal well testing established an encouraging hydrocarbon flow of close to 4 thousand
barrels per day. Moreover, the Company is also drilling one well to establish
recoverability of the prospective unconventional resources in Block-1.
Alternative Energy
Your Company is steadily progressing towards harnessing renewable
energy to minimise carbon emissions for a green economy. The Company's installed capacity
of Renewable Energy stood at 237.42 MW as on 31.03.2022, which included 167.6 MW of wind
capacity and 69.82 MW of solar photo voltaic (PV) capacity. During the year, solar PV
capacity of 4.47 MW was added. The total generation through the Company's renewable
portfolio during the year was 358.20 GWh, which resulted in emission mitigation of 282.98
thousand metric tonnes of carbon-dioxide equivalent. The total renewable energy generated
forms about 5% of the total electricity consumption of the Company.
As on 31.03.2022, the Company has solarised 19,502 Retail Outlets with
a cumulative solar power installed capacity of ~111.5 MW, of which 9.1 MW was added during
2021-22.
Your Company is leading the implementation of SATAT (Sustainable
Alternative Towards Affordable Transportation) Scheme of Gol and has issued Letters of
Intent (LOIs) to 2188 plants for production and supply of Compressed Biogas (CBG)
of about 5.1 MMTPA. Sale of CBG has started from 26 Retail Outlets
located across the states of Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, Telangana,
Punjab, Haryana, Karnataka & Uttar Pradesh; and two Industrial Consumers in Tamil Nadu
under the brand name of 'IndiGreen'. During the financial year, the Company sold 3891
tonnes of CBG, while the cumulative sales of CBG since its inception in September 2019
till March 2022 was 5262 tonnes.
As the Company strengthens the future CBG growth plans, a tri-partite
Memorandum of Understanding (MoU) was signed with Poonawalla Clean Energy Pvt. Ltd. and
Noble Exchange Solutions Pvt. Ltd. for exploring production of CBG and rolling- out of
city waste to city transport' model in 100 cities. Further, it also signed MoUs with
BIO-WMS Private Limited and CNM Energy Pvt. Ltd. for setting up of 100 CBG Plants each.
The Company has cumulatively issued 31 LOIs to set up UCO-Biodiesel
plants for a cumulative quantity of ~23 crore litres. During the year, the Company
received 71 KL of UCO (Used Cooking Oil) based Biodiesel (UCO-Biodiesel) at its Tikrikalan
Terminal in Delhi, while supplies of UCO-Biodiesel commenced from two Plants.
In line with government directives of 20% ethanol blending by 2025,
apart from the conventional 1G route, the Company is enabling 2G and 3G sources, with
appropriate use of modern technology to set up state-of-the-art 2G and 3G plants. One such
2G Ethanol Plant of 100 KLP/D capacity is coming up in Panipat and is expected to be
commissioned in the current year.
In electric mobility, the Company has collaborated with Israeli
company, Phinergy Limited and formed 'IOC Phinergy Private Limited' (IOP), for
commercialisation of aluminium-air battery technology in India. The Company has set a
target of installing 10,000 EV charging stations in the next three years and already has
2145 EV charging stations under its fold.
Sustainable Development
Your Company began its sustainability journey more than a decade ago,
however, even prior to this, caring for people and planet had been integral to its way of
doing business. In today's times, sustainability or ESG performance has become fundamental
to managing stakeholders' expectations.
The Company's carbon footprint during the year was close to 21.54
MMTC02e, while the water footprint was 98.68 billion litres. The Company has committed to
achieve net zero emissions while continuing the efforts towards environment management and
conservation. The Company also undertook a massive tree plantation effort during the year,
besides undertaking emission mitigation efforts like energy efficiency, fuel replacement
and alternate energy projects. As on 31.03.2022, your Company installed rainwater
harvesting projects with catchment area of over 2,800 Hectare which are estimated to have
harvested about 7.5 billion litres of rainwater during 2021-22. The Company is also
pursuing efforts in waste management and towards establishment of circular economy,
especially in plastic waste and organic waste.
The Company has commissioned a 5 TPD cattle dung-based Biogas plant at
Gorakhnath Temple, Gorakhpur, Uttar Pradesh under CSR. The gas produced from the Biogas
plant is being used as cooking fuel for temple devotees and Biogas is also used to operate
a gas generator at the temple premises. The plant is in addition to the earlier
commissioned two 5 TPD cattle dung-based Biogas plants at Betul & Hoshangabad, Madhya
Pradesh.
Overseas Business
Your Company firmly believes that diversification and globalisation are
key to the future. In pursuit to be a 'Globally Admired Company', IndianOil has been
keeping a close watch on the developments in the geographies of its interest to explore
business opportunities and enhance global footprints. During the year, the Company along
with its partners established Bharat Energy Office, a Limited Liability Company (LLC) in
Russia, with 20% participation, through its wholly owned subsidiary, IOCL Singapore Pte.
Ltd (ISPL).
The Company has been exploring new avenues for exports, in pursuance of
its Vision of being a Globally Admired Company, by leveraging its core competencies to
harness business opportunities across the globe. The Company has been the sole supplier of
major Petroleum products to Nepal through the state- owned company Nepal Oil Corporation
(NOC) under a General Supply Agreement (GSA) since 1974. Under last GSA 2017-2022, while
the Company supplied around 11.8 MMT product from 2017 to 2022, the export to Nepal is
estimated to grow at a rate of more than 10% during next 15 years. The agreements for a
further period of five years have been executed and during the validity of the current
agreement from 2022-27, export of 15 MMT of products is projected. The Company as a part
of Gol's bilateral initiatives conducted a joint study for identification of petroleum
infrastructure projects in Nepal and would be entering into a separate agreement with NOC
for the same.
A Joint Venture Company named 'Beximco IOC Petroleum & Energy Ltd.'
(BIPEL) between IOC Middle East FZE, Dubai (a wholly owned subsidiary of the Company) and
RR Holdings Ltd., Ras-Al-Khaimah with equity holding of 50% each, was formed in
Bangladesh. BIPEL would acquire the existing LPG infrastructure of Beximco LPG, a
subsidiary of RR Holdings Ltd. in Bangladesh. In addition, supply of LPG to Northeast
India and diversification into other downstream business activities like LNG, Lubricants,
and Petrochemicals etc. is also planned under the ambit of BIPEL.
A major milestone was achieved in India-Sri Lanka economic & energy
partnership with signing of long pending lease deed between Govt, of Sri Lanka, Ceylon
Petroleum Corporation (CPC) and Lanka IOC PLC (a Subsidiary of IndianOil in Sri Lanka) on
January 6, 2022 for Trincomalee Tank Farm along-with the Modalities & JV agreements.
The execution of documents for a period of 50 years and leasing of tanks in favour of the
newly formed Joint Venture viz. Trinco Petroleum Terminal (Pvt) Ltd. (wherein Lanka IOC
has shareholding of 49% & CPC has 51%) shall provide umpteen opportunities for both
India & Sri Lanka.
Explosives
The Explosives group achieved an all-time high production & sale of
287 TMT Bulk Explosives during 2021-22, clocking a growth of 8% over previous year's
volume. In the last seven years, the production and sales of Bulk Explosives has grown
almost three folds from 100 TMT in 2014-15 to 287 TMT in 2021-22.
To cash in on the growth opportunities in the segment, in addition to
brownfield projects, greenfield projects are being planned at Umrer (Maharashtra),
Basundhara (Odisha), Neyveli (Tamil Nadu) and Mandamari (Telangana).
Diversification
Your Company had ventured into setting up fertiliser plants at Barauni
(Bihar), Gorakhpur (U.P.) and Sindri (Jharkhand) through a joint venture company,
Hindustan Urvarak and Rasayan Ltd., in partnership with National Thermal Power Corporation
Ltd., Coal India Ltd., Fertilizer Corporation of India Ltd. and Hindustan Fertilizer
Corporation Ltd. While the plant at Gorakhpur has been commissioned in May 2022, the other
plants are under advanced stages of construction and slated to be commissioned by the
second quarter of 2022-23.
International Trade
Your company imported 57.94 MMT of Crude Oil during the year, as
against 53.60 MMT in the previous year to meet the crude requirement for processing at its
refineries.
The selection of Crude Oil is done from a diversified mix of supply
sources to optimise the cost as well as to improve flexibility. The import of petroleum
products during the year was 9.324 MMT as against 8.58 MMT in the previous year.
Projects
Your Company recognises the importance of infrastructure development
and has been consistently investing in several projects across the country and achieved
its Capex target for the sixth consecutive year. Your Company has consistently contributed
more than a quarter of the combined Capex spend of all PSUs under MOP&NG since
2018-19. The projects are financed through an optimum mix of internal accruals and
borrowings from domestic as well as international markets whenever required. The project
teams across the divisions ensured that the projects are implemented seamlessly.
During the year, the total capex spent by the Company was Rs 30,391
crore (Rs 26,635 crore on capital projects and Rs 3,756 crore towards equity investment in
joint ventures / subsidiaries).
The strength of the Company springs from its experience of operating
the largest number of refineries in India and adapting to a variety of refining processes
along the way. The Company has commissioned several grassroot refineries and modern
process units at its refineries and is constantly investing in refining technologies to
stay ahead of the curve. Your Company has ambitious growth plan for capacity augmentation,
de-bottlenecking, bottom upgradation and quality upgradation. Projects worth more than H 1
lakh crore are under various stages of implementation at the refinery locations, notably
expansion projects at Barauni from current 6 MMTPA to 9 MMTPA, Gujarat from current 13.7
MMTPA to 18 MMTPA through the Petrochemical & Lube Integration Project, Panipat from
current 15 MMTPA to 25 MMTPA. and Guwahati from current 1 MMTPA to 1.2 MMTPA; PX-PTA &
Ethylene Glycol project at Paradip; Oxo Alcohol project at Gujarat, Naphtha Cracker revamp
project at Panipat; Linear Alkyl Benzene revamp project at Gujarat; Poly Butadiene Rubber
(PBR) Project at Panipat; 2nd Generation and 3rd Generation Ethanol
Projects at Panipat; Bitumen project at Gujarat & Barauni etc.
The existing refining capacity of the IndianOiL refineries will expand
from 70.05 MMTPA to 87.9 MMTPA by 2025. The group refining capacity i.e. including CPCL
shall stand at 107.05 MMTPA by 2025.
To compliment the various greenfield and brownfield projects of the
refineries, marketing and business development, various pipeline projects are being
implemented across the country to ensure the most economical mode of transportation. The
projects presently under implementation would increase the pipeline network length to
around 21900 km and enhance capacity to 165.9 MMTPA and 51.7 MMSCMD respectively for
liquid and gas pipelines, upon completion. Major ongoing pipeline projects include HaLdia
- Barauni crude oil pipeline, Paradip - Hyderabad product pipeline, augmentation of the
Paradip - HaLdia - Durgapur LPG pipeline and its extension up to Patna and Motihari,
KoyaLi - Ahmednagar - SoLapur product pipeline, Paradip - Somnathpur - HaLdia product
pipeline, augmentation of the SaLaya - Mathura crude oil pipeline system, Laying of new
Mundra - Panipat crude oil pipeline and Ennore - ThiruvaLLur - Bengaluru - Puducherry -
Nagapattinam - Madurai
- Tuticorin natural gas pipeline. In addition, your Company is
undertaking massive LPG and natural gas pipeline projects through joint ventures, spanning
approximately 8,600 Km. These include the longest LPG pipeline in the world, KandLa -
Gorakhpur LPG pipeline, Kochi - Salem LPG Pipeline, the NorthEast Natural Gas Grid,
Mehsana - Bhatinda, Bhatinda - Jammu
- Srinagar & MaLLavaram - Bhopal - BhiLwara - Vijapur pipelines.
To ensure uninterrupted supply of energy solutions various
infrastructure projects comprising of fuel stations, Indane LPG distributorships, SERVO
lubricants & greases outlets, Consumer pumps, bulk storage terminals and
installations, inland depots, aviation fuel stations, LPG bottling plants, lube blending
plants, import terminals are also being undertaken.
The construction of the R&D campus at Faridabad, Haryana at a capex
of H 3200 crore, is underway and is expected to be completed by 2023. The new campus will
have state-of-the-art facilities to boost the research horizon of the R&D Centre on
areas like alternative and renewable energy, nanotechnology, etc.
Health, Safety & Environment (HS&E)
The Company is committed to conduct its business with a strong
environment conscience, ensuring sustainable development, safe workplaces and enrichment
of the quality of life of its employees, customers and community. ALL IndianOiL refineries
are certified to ISO:14064 standards for sustainable development as well as for the
Occupational Health and Safety Management System (ISO:45001), besides having fully
equipped occupational health centres. Further, the petrochemical plants, most of the
pipeline installations and few of the marketing installations are ISO-14001 certified for
environmental management. API RP 1173 based Pipeline Safety Management System has been
introduced across the entire pipeline network. Compliance with safety systems and
procedures and environmental laws is monitored at the Unit, Division, and Corporate level.
The HS&E activities of the Company are reviewed periodically in the
Board meetings. During the year, various capability building, and training programmes were
conducted on safety-related topics covering the entire spectrum of activities of the
Company.
During the year, occupation health related activities like
"Paramarsh" - to take care of the mental and psychological health of IndianOiL
workforce, Annual Corporate Occupational Health Meet with the theme 'Promoting Healthy,
Safe & Resilient workplace', 'Emotional WeLLness Interactive workshops, etc. were
organised.
In addition, various capabiLity buiLding, and training programmes were
conducted on safety-reLated issues, such as aLL India campaigns for safe decantation of
Tank Trucks (TT), safe TT driving campaigns, simuLator-based training, HAZOP and risk
anaLysis, issuance of various guideLines & SOPs, etc.
Digital Initiatives
Information technoLogy and digitaLisation continued to pLay a pivotaL
roLe in growth of IndianOiL's business during 2021-22 with impLementation of various
initiatives aimed at harnessing the best use of the technoLogies which were carefuLLy
infused with our core vaLues of Care, Innovation, Passion, and Trust.
In August 2021, the Skill Development Institute (SDI), Bhubaneswar was
dedicated to the nation and foundation stone of the permanent campus, ICT-IOC Bhubaneswar
was laid. The details of Skill Development initiatives at SDI are provided in CSR report.
The frontiers of learning continued to expand during the year. The
e-learning initiative of IndianOil, 'Swadhyaya' registered a significant milestone of
one-million course completion. New initiatives like "Saarthi" - a one-on-one
Leadership Coaching initiative and "Madhyama" - a mid-career training programme
were launched during the year. To further enhance the learning of employees, IndianOil
procured "Harvard ManageMentor" - an off-the-shelf online resource that provides
expert content on leadership competencies.
National Commitment during Covid-19 Pandemic
Standing tall with its motto of "Pehle Indian, Phir Oil",
your Company remained resilient, strong, agile and took several initiatives amidst all the
challenges posed by the Covid-19 pandemic to meet our customers' needs. In the face of a
massive surge in demand for Medical Grade Oxygen during the second wave of the Covid-19
pandemic, your company with its strong end to end logistics capabilities, ensured supply
of Liquid Oxygen to various States. Under the aegis of GOI, the company supplied 200 MT
Liquid Medical Oxygen (LMO) to Vietnam and Indonesia. To help the country to overcome the
deficit of Liquid oxygen Tankers, the Cryogenic group of the company designed and
manufactured 20 nos. of LOx tankers (20 MT) to combat Covid's second wave in record time.
In addition to ramping-up indigenous production of Liquid Oxygen at refineries, the
company also imported 420 MT of LMO from Linde Singapore and Middle East and arranged
logistics for LMO and ISO containers received as gratis from other countries. True to its
national commitment your company took various other initiatives under CSR (Corporate
Social Responsibility) to help the society in facing the challenges posed by the pandemic.
As a socially responsible organisation, we carried out a massive
vaccination program with renewed vigour by taking initiatives like 'Mission Vaccination'
wherein free vaccination was provided to more than 5 lakh beneficiaries including
employees, ex-employees, channel partners, stakeholders, contract workers and their family
members. The pandemic has also left an indelible mark on the company as the life of some
of the previous employees were also lost. As a mark of support to the bereaved families of
such employees who expired during these difficult times of pandemic, a lumpsum amount as
"Samvedna Rashi" was provided. In addition, the children who are orphaned after
the death of the employee in cases where the employee was a single parent or the spouse
expired before exercising any rehabilitation option, to ensure continuity of education of
such child(ren), "Shiksha Mitra" scheme has been introduced which shall provide
financial assistance for their education. To address the concerns related to employee
wellbeing, especially in the post-Covid scenario, an Employee Assistance Programme was
launched on September 1 on the 62nd IndianOil Day, to provide support and
guidance to employees in dealing with issues and complications that could adversely affect
their wellbeing.
Particulars of Employees
The provisions of Section 134(3)(e) of the Act are not applicable to a
Government Company. Consequently, details on Company's policy on Directors' appointment
and other matters as required under Section 178 (3) of the Act, are not provided.
Similarly, Section 197 of the Act is also exempt for a Government
Company. Consequently, there is no requirement of disclosure of the ratio of the
remuneration of each Director to the median employee's remuneration and other such
details, including the statement showing the names and other particulars of every employee
of the Company, who if employed throughout / part of the financial year, was in receipt of
remuneration in excess of the limits set out in the Rules are not provided in terms of
Section 197 (12) of the Act read with Rule 5 (1) / (2) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
Hindi Implementation
The Company is committed to implementing Hindi in the day- to-day
functioning at its various offices/ locations/units. The provisions of the Official
Language Act, 1963, and Rules notified thereunder were complied with. The communications
received in Hindi including any application, appeal or representation written or signed by
an employee in Hindi are replied to in Hindi. Official Language Implementation Committees
(OLIC) have been formed in all offices/units to review the progress of implementation of
official language policies.
Corporate Social Responsibility
During the year, the Company undertook various CSR initiatives to
overcome the challenges posed by the Covid-19 pandemic like Installation of Medical grade
Oxygen Generation Units; supply of medical grade liquid oxygen to various hospitals in
Delhi, Haryana and Punjab; procurement of oxygen concentrators & cylinders;
contributions to the PM CARES Fund, etc., in addition to various other CSR activities.
During the year, as against the CSR budget of H 204.77 crore (2% of the average profit of
the previous three years H 323.14 crore minus excess spent in previous year H 118.37
crore), the Company spent a higher sum of H 298.29 crore to ensure continuity in the
planned CSR activities including many flagship projects resulting in carry over of H 93.52
crore for setting off in succeeding years. A report on the Company's CSR activities as per
the provisions of the Companies Act, along with CSR highlights for the year is attached as
Annexure - II to the Report. The CSR policy of the Company can be accessed on the Company
website: https://www.iocl.com/download/ IOC S&CSR Policy.pdf.
Business Responsibility & Sustainability Report
IndianOil has been publishing its Business Responsibility Report,
providing information on the various initiatives taken with respect to environmental,
social and governance perspectives, in accordance with the directives of SEBI and is
hosted on the website of the Company.
SEBI vide notification issued in May 2021 has introduced a new
sustainability related report "Business Responsibility and Sustainability
Report" (BRSR), which would replace the existing "Business Responsibility
Report" (BRR). The BRSR is a notable departure from the existing BRR and a
significant step towards bringing sustainability reporting at par with the financial
reporting. Even though, the BRSR is voluntary for the year 2021-22, your Company has
decided to publish the BRSR which is hosted on the website on the Company on the link
https://www.iocl.com/business-responsibilitv-report.
Audit Committee
The Audit Committee of the Board comprised of four members as on March
31,2022, of whom three were Independent Directors (including its Chairman) and one
non-executive Director. The observations / recommendations made by the Audit Committee
during the year were put up to the Board and the same were accepted by the Board. Other
details of the Audit Committee, such as its composition, terms of reference, meetings
held, etc., are provided in the Corporate Governance Report.
Other Board Committees
The details of other Board Committees, their composition and meetings,
are also provided in the Corporate Governance Report.
Code of Conduct
The Board of the Company has enunciated a Code of Conduct for the
Directors and Senior Management Personnel, which was circulated to all concerned and was
also hosted on the Company's website. The Directors and Senior Management Personnel have
affirmed compliance with the code of conduct for the financial year 2021-22.
Risk Management
The Enterprise Risk Management framework in the Company encompasses
practices relating to risk identification, assessment and categorisation, analysis,
mitigation and monitoring of the strategic, operational, and legal and compliance risks to
achieving its key business objectives. Your Company endeavours to minimise the adverse
impact of these risks, thus enabling the Company to leverage market opportunities
effectively and enhance its long-term competitive advantage. The focus of risk management
is to assess risks and deploy mitigation measures.
A Risk Management Compliance Board (RMCB) comprising senior management
personnel and headed by Chief Risk Officer periodically reviews the various risks
associated with the Company's business. The Company has constituted a
Risk Management Committee (RMC) which oversee risk management
activities. All changes in the Risk register as suggested by RMCB are made after approval
of RMC. A report is, thereafter, put up to the Audit Committee and the Board.
Internal Financial Controls
The Company put in place adequate internal financial controls for
ensuring efficient conduct of its business in adherence with laid-down policies:
safeguarding of its assets: prevention and detection of frauds and errors: accuracy and
completeness of the accounting records: and timely preparation of reliable financial
information, which is commensurate with the operations of the Company.
The Company has a separate Internal Audit department headed by a Chief
General Manager, who 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 over financial reporting of the Company under
Clause (i) of Sub-Section 3 of Section 143 of the Companies Act 2013. The report issued
thereupon has been attached along with the Standalone and Consolidated Financial
Statements, respectively.
The Board believes that systems in place provide a reasonable assurance
that the Company's internal financial controls are designed effectively and are operating
as intended.
Statutory Auditors
The Office of the Comptroller & Auditor General of India had
appointed the Statutory Auditors for the financial year 2021- 22. The Auditors have
confirmed that they are not disqualified from being appointed as Auditors of the Company.
The Notes on the financial statement referred to in the Auditors' Report are
self-explanatory. The Auditors' Report does not contain any qualification or adverse
remark. In addition, the Company has also engaged them for Limited Review and Tax Audit
for the financial year 2021-22.
The Auditors' remuneration for the year was fixed at Rs 2.60 crore, Rs
1.40 crore and Rs 0.50 crore for Statutory Audit, Limited review, and Tax Audit
respectively along with applicable taxes and reasonable out of pocket expenses. In
addition, fee was paid to Statutory Auditors for other certification jobs. The total
amount paid / payable to the Statutory Auditors for all services rendered to the Company
during 2021-22 was Rs 5.11 crore.
Comptroller and Auditor General of India (C&AG) Audit
Supplementary Audit of Financial Statements: The
Standalone and Consolidated Financial Statement for the Financial Year
ended March 31, 2022, were submitted to the C&AG for supplementary audit. The C&AG
have conducted supplementary audit and issued NIL comments. The NIL comment certificate is
attached in this Annual Report after the Financial Statements. This is the 16th
consecutive year that your company has received such NIL comment on its Financial
Statement.
C&AG paras from other audits: In addition to the supplementary
audit of the financial statements mentioned above, the C&AG conducts audits of various
nature including Inspection audit, Thematic audit, Proprietary audit, etc. As on March 31,
2022, there are sixteen pending audit paras on various subjects including Short
realisation from Disposal of a land, Abandoned Exploration & Production (E&P)
Project, Maintenance of grade wise costing of Petrochemicals, Extra cost due to delay in
finalisation of tender, Pradhan Mantri Ujjwala Yojna (PMUY) to unentitled persons,
Avoidable entry tax, Updation of daily price change at Retail Outlets, Recovery of
turnover tax, Expenditure turning infructuous due to non-adherence pollution clearance
requirement and employee benefits like EPF contribution on leave encashment, Encashment of
Earned leave and sick leave, Stagnation Relief, Performance Related Pay, Shift allowance,
Project Allowances, Long Service Award. The replies to these paras have been submitted and
the status reports are also being furnished from time to time.
Cost Audit
The Company maintains cost records as required under the provisions of
the Companies Act. The Company had appointed Cost Auditors for conducting the audit of the
cost records maintained by its refineries, lube blending plants and other units for
2021-22. A remuneration of Rs 20.20 lakh and applicable taxes was fixed by the Board for
payment to the cost auditors for 2021-22, which was ratified by the shareholders in the
last AGM. The cost audit reports are filed by the Central Cost Auditor with the Central
Government in the prescribed form within the stipulated time.
Secretarial Audit
The Board had appointed Mehta & Mehta, Company Secretaries, to
conduct the Secretarial Audit for 2021-22. The Secretarial Auditor in their report have
stated that during the period under review, the Company has complied with the provisions
of the Act, Rules, Regulations, Guidelines, Standards, etc., except as under:
- the requirement of having not less than 50% of the Board of Directors
as Non-Executive Directors for the period 01.04.2021 to 23.11.2021.
- the requirement of having at least half of the Board of Directors as
Independent Director for the period 01.04.2021 to 23.11.2021 and 07.02.2022 to 31.03.2022.
- the requirement of having atleast two- third of the members of the
Audit Committee as Independent Directors for the period 11.07.2021 to 23.11.2021.
- the requirement of having atleast fifty percent of the members of the
Nomination & Remuneration Committee as Independent Directors for the period 11.07.2021
to 23.11.2021.
- performance evaluation of Independent Directors by the entire Board
of Directors and review of performance of Non-Independent Directors, the Board of
Directors as a whole and the Chairperson of the Company by the Independent Directors.
In this regard, it is clarified that the Company being a Government
Company under the administrative control of the Ministry of Petroleum & Natural Gas,
the selection, appointment of Directors, (including Independent Directors and Women
Directors) terms and conditions and remuneration of functional directors, vests with the
Government of India as per Government guidelines. Further, the Ministry of Corporate
Affairs, vide notification dated June 5, 2015, has provided exemption to Government
Companies, regarding the provisions related to evaluation of performance of Directors
under the Companies Act, 2013, as the evaluation is carried out by the administrative
ministry.
The Secretarial Audit report for the year ended March 31, 2022, issued
by Mehta & Mehta, Company Secretaries, is attached as Annexure - III to this report
Reporting of Frauds by Auditors
The Auditors in their report for the year have not reported any
instance of fraud committed by the officers/employees of the Company.
Public Procurement Policy for Micro and Small Enterprises (MSEs) Order
2012
In line with the Public Procurement Policy of the Government of India,
as amended, the Company is required to procure minimum 25% of the total procurement of
Goods and Services from MSEs, out of which 4% is earmarked for procurement from MSEs owned
by SC/ ST entrepreneurs and 3% from MSEs owned by women. The procurement from MSEs
(excluding crude oil, petroleum products and natural gas, API line pipes and certain
proprietary items) during 2021-22 was as under:
| PARAMETERS |
TARGETS |
ACTUAL |
| Total Procurement from MSEs (General, Reserved SC/ST &
Women) |
25% |
37.43% |
| Procurement from Reserved SC/ST MSEs |
4% (Sub-target out of 25%) |
1.08% |
| Procurement from Women-owned MSEs |
3% (Sub-target out of 25%) |
0.31% |
The deficit of 2.92% and 2.69% under the sub-targets was due to
non-availability of vendors in the sub-category; however, the overall target was achieved
by procurement from other micro and small enterprises in line with the policy.
Several initiatives were undertaken by the Company to identify the
entrepreneurs for procurement of goods and services from MSEs owned by SC/ST enterprises,
including 86 vendor development programmes.
Subsidiaries, Joint Ventures & Associates
During 2021-22, the Company acquired 49% equity stake in Paradeep
Plastic Park Ltd., a company established for development and implementation of Paradeep
Plastic Park project. Odisha Industrial Development Corporation holds the balance 51%
equity in the company.
Further, Indian Catalyst Private Ltd., a wholly owned subsidiary, was
dissolved and name of the company was struck off from the Register of Companies w.e.f
25.10.2021.
As required under the provisions of the Companies Act, 2013, a
statement on the performance and financial position of each of the subsidiaries, joint
venture companies and associates is annexed to the Consolidated Financial Statements. The
financial statements of the subsidiaries have also been hosted on the Company website
www.iocl.com under the 'Financial Performance' section.
In accordance with the provisions of SEBI guidelines,your Company has
framed a policy for determining material subsidiaries, which can be accessed on the
Company's website at https:///www.iocl. com/download/Material Subsidiary Policv.pdf
Related Party Transactions (RPTs)
During the year, your Company entered into RPTs, which were on arm's
length basis and were in the ordinary course of business. As required under the provisions
of the Companies Act, 2013, and SEBI (LODR), all RPTs were approved by the Audit
Committee.
During the year, the Company had not entered into any transaction with
related parties, which could be considered material in accordance with the policy of the
Company on materiality of related party transactions.
In view thereof, there is no transaction which needs to be reported in
Form No. AOC-2, in terms of Section 134(3)(h) read with Section 188 of the Act and Rule
8(2) of the Companies (Accounts) Rules, 2014.
Pursuant to SEBI notification dated 09.11 2021, the Company amended the
"Policy on Materiality of Related Party
Transactions". The Policy is hosted on the Company's website and
can be accessed at: https://www.iocl.com/download/ Policies/RPT Policv.pdf.
Energy Conservation, Technology Absorption and Foreign Exchange
Earnings and Outgo
Energy conservation is accorded utmost importance across the various
operations in the Company. The performance of all units is monitored on a continuous basis
and efforts are made for continuous improvement by incorporating the latest technologies
and global best practices. The various energy conservation measures implemented across the
refineries during the year, resulted in energy saving as well as monetary saving.
In accordance with the provisions of the Companies Act, 2013, and rules
notified thereunder, the details relating to Energy Conservation, Technology Absorption
and Foreign Exchange Earnings and Outgo are annexed as Annexure - IV to the Report.
Board of Directors & Key Managerial Personnel
The following changes occurred in the Board / Key Managerial Personnel
of the Company:
1. Shri G. K. Satish, Director (Planning & Business Development)
ceased to be a Director w.e.f. September 1, 2021 consequent upon his superannuation.
2. Smt Indrani Kaushal, Government Nominee Director ceased to be a
Director w.e.f. September 25, 2021 consequent upon withdrawal of her nomination by the
MoP&NG.
3. Shri V. Satish Kumar was appointed as Director (Marketing) w.e.f.
October 28, 2021
4. Shri Dilip Gogoi Lalung, Dr Ashutosh Pant, Dr Dattatreya Rao
Sirpurker, Shri Prasenjit Biswas, Shri Sudipta Kumar Ray and Shri Krishnan Sadagopan were
appointed as Independent Directors w.e.f. November 24, 2021.
5. Shri D. S. Nanaware was appointed as Director (Pipelines) w.e.f.
December 28, 2021.
6. Ms Sukla Mistry was appointed as Director (Refineries) w.e.f.
February 7, 2022.
7. Shri Sujoy Choudhury was appointed as Director (Planning &
Business Development) w.e.f. February 23, 2022.
8. Dr (Prof) Ram Naresh Singh was appointed as Independent Director
w.e.f. April 8, 2022.
In line with the amended SEBI (LODR), approval of members was obtained
through postal ballot for all appointments made on the Board within a period of 3 months
from the date of appointment.
Shri Sandeep Kumar Gupta, Director (Finance) and Dr S.S.V. Ramakumar,
Director (Research & Development) are liable to retire by rotation and being eligible
are proposed to be reappointed at the forthcoming Annual General Meeting (AGM). Their
brief profile is provided in the notice of the AGM.
Independent Directors
The Company has received the Certificate of Independence from the
Independent Directors confirming that they meet the criteria prescribed for Independent
Directors under the provisions of the Companies Act, 2013, and SEBI (LODR). The
Independent Directors have confirmed that they are registered with the Database maintained
by the Indian Institute of Corporate Affairs (IICA) under the Ministry of Corporate
Affairs.
The Company being a Government Company, the power to appoint Directors
(including Independent Directors) vests with the Government of India. The Directors are
appointed by following a process as per laid down guidelines. In the opinion of the Board,
the Independent Directors have the requisite expertise and experience.
A separate meeting of Independent Directors was held during the year as
per provisions of the Companies Act, 2013, and SEBI (LODR).
Board Meetings
During the year, 9 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 to avoid duplication.
Board Evaluation
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 the
Directors is carried out by the administrative ministry, i.e., Ministry of Petroleum and
Natural Gas (MoP&NG), as per laid-down evaluation methodology.
Significant and Material Orders Passed by the Regulators or Courts
No significant and material orders were passed by the regulators or
courts or tribunals, during the year that impact the going concern status of the Company
and its operations in the future.
Vigil Mechanism / Whistle-Blower Policy
The Company promotes ethical behaviour in all its business activities
and has put in place a mechanism for reporting illegal or unethical behaviour. The Company
has established a robust Vigil Mechanism and a whistle-blower policy in accordance with
provisions of the Act and Listing Regulations. Under the whistle-blower policy, 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. No employee
has been denied access to the Audit Committee. The policy on Vigil
Mechanism/Whistle-Blower can be accessed on the Company's website at: https://www.
iocl.com/lnvestorCenter/pdf/Whistle_Blower_policv.pdf.
Details of Loans / Investments / Guarantees
The Company has provided loans / guarantees to its subsidiaries, joint
ventures and associates and has made investments during the year in compliance with the
provisions of the Companies Act, 2013, and rules notified thereunder. The details of such
investments made, and loans / guarantees provided as on March 31, 2022 are provided in
Note No.4, 36, 37 and 42 of the Standalone Financial Statement.
Annual Return
As required under the provisions of the Companies Act, 2013, the Annual
Return is hosted on the Company's website and can be accessed from the link:
https://www.iocl.com/annual-return.
Compliance with Secretarial Standards
The Company complies with the applicable Secretarial Standards issued
by the Institute of Company Secretaries of India (ICSI).
Credit Rating of Securities
The credit rating assigned by rating agencies for the various debt
instruments of the Company is provided in the Corporate Governance Report.
Investor Education & Protection Fund (IEPF)
The details of unpaid / unclaimed dividend and shares transferred to
the IEPF in compliance with the provisions of the Companies Act, 2013, has been provided
in the Corporate Governance Report.
Material Changes Affecting the Company
There have been no material changes and commitments, affecting the
financial position of the company between the end of the financial year and date of this
report. There has been no change in the nature of the business of the Company.
Directors' Responsibility Statement
Pursuant to Section 134(3)(c) of the Companies Act, 2013 pertaining 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 alongwith proper explanation relating to material
departures:
(b) the Directors had selected such accounting policies and applied
them consistently and made judgements 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 appreciation for the
sincere, dedicated and untiring efforts of the employees of the Company, the contract
labour, and employees of business channel partners to ensure the supply of petroleum
products across the country during the lockdown and restrictions caused by the Covid-19
pandemic, and for achieving an excellent performance despite challenges during the year.
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 support as well as guidance 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 Company. The Board would like to place on
record its appreciation for the valuable guidance and significant contribution made by
Shri G. K. Satish and Smt Indrani Kaushal, during their tenure on the Board of the
Company.
|
For and on behalf of the Board |
|
Sd/- |
|
(Shrikant Madhav Vaidya) |
| Place: New Delhi |
Chairman |
| Date: July 28, 2022 |
DIN: 06995642 |
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