Indian Oil Corporation Ltd
Chairman Speech
IndianOil made its mark among the 'Top 10 Strongest Oil and Gas Brands'
worldwide (Brand Finance Plc 2022 listing) and was also named as the 'Most Loved Non-FMCG
Brand' by Kantar Brandz (2022).
Dear Shareholders,
It is my privilege to present to you the Integrated Annual Report of
your Company for 2022-23. It captures the essence of a year that reflects the milestones
and values that define IndianOil, and how it has emerged as the harbinger of India's
energy transition journey.
I feel proud that our dedicated team has consistently delivered
outstanding results to enhance shareholders' value. Let me reiterate that we remain
committed to maintaining the highest standards of corporate governance, transparency, and
accountability, ensuring that the interests of our stakeholders are safeguarded at every
step.
I am happy to share that your Company's performance in 2022-23 was
indeed stellar across all operational fronts. During the year, your Company registered its
highest-ever Revenue from Operations, at H9,34,953 Crore (Rupees Nine Lakh Thirty-Four
Thousand Nine Hundred and Fifty-Three Crore). We also notched up a net profit of H8,242
Crore (Rupees Eight Thousand Two hundred and Forty-Two Crore), that underscores the
inherent resilience that empowers us to rise above global challenges and make a mark. We
also achieved the highest ever sales volume of 95.714 Million Metric Tonnes of products,
cementing our leadership position in the business. Honours also rolled in as your Company
made its mark among the 'Top 10 Strongest Oil and Gas Brands' worldwide (Brand Finance Plc
2022 listing) and was also named as the 'Most Loved Non-FMCG Brand' by Kantar Brandz
(2022).
It was also a year of shining milestones like silver jubilee
celebrations of Panipat Refinery & Petrochemical Complex, and the Pipelines Division,
golden jubilee of Bongaigaon Refinery and the diamond jubilee of Guwahati Refinery.
Values that Steer India's Energy Vision
I strongly believe that organisational success endures only when it is
backed by an unwavering commitment to values that shine above business dimensions. The
above numbers, milestones and accolades were delivered by our super-motivated energy
soldiers, demonstrating the tenet of 'Pehle Indian Phir Oil' or Nation before business, in
letter and spirit. Beyond our much-celebrated core values of Care, Innovation, Passion,
and Trust, the spirit of 'Nation-First' is infused in our DNA and has turned your Company
into the force it is today. Thus, in a natural progression, we have added another core
value, 'Nation-First,' to our existing values. To reiterate and reaffirm our commitment to
our Values, the first Values Day was celebrated on June 30, 2023. This marks the landmark
day in 1959, when Indian Oil Company Ltd., the precursor to Indian Oil Corporation Ltd.,
was incorporated.
The journey of over six decades of energising India has been deeply
fulfilling. We are geared to catalyse the country's growth trajectory, as the energy
custodians, and the architects of a brighter tomorrow. In specific terms your Company, has
a distinct vision to drive India's energy destiny. Currently, we have a 9% share in
India's energy pie, and we intend to increase our contribution to around 1/8th
or 12.5% by 2050. There is a concrete action plan to get there and establish your
Company as a 360-degree energy company, The blueprint encompasses
leveraging varied pathways to fulfil the rapidly growing energy demand of an ascendant
India.
Taking on the green mantle
Under India's G20 Presidency, 'ensuring universal energy access and
just, affordable, and inclusive energy transitions' is a key priority, that echoes the
need for striking a strategic balance while driving accelerated, inclusive, and resilient
growth in the energy sector.
Beyond fuelling, we aspire to be the vitalising force in greening an
ascendant nation. India's resolve to achieve the Net-Zero Goal by 2070, defines this 'New
India' that is ambitious, socially empathetic, and environmentally sensitive. Aligning
with these national targets, during the last Annual General Meeting, your Company
committed itself to achieving Net- Zero operational emissions by 2046, aiming to mitigate
both Scope 1 & 2 emissions.
This declaration is a defining moment in the history of your Company
that demonstrates its firm resolve of leading India's energy transition journey from the
front. We already have a well-crafted blueprint in place with a multi-pronged approach to
gradually take us towards the Net-Zero destination with an investment of around USD 30
Billion till 2046. The various emission mitigation pathways such as green hydrogen,
biofuels, renewables, carbon offsetting, and Carbon Capture Utilisation and Storage (CCUS)
are already underway to steer the green journey.
Powering Progress
While steering India's green agenda, I must underline, that given
India's progress trajectory and geopolitical realities, it is imperative to strengthen our
focus on the traditional business.
The country's energy demand is all set to go up as the Indian economy
is pacing ahead, aiming for the USD 5 Trillion mark by 2025 and USD 10 Trillion by 2030.
In fact, the tumultuous geopolitical events that unfolded in 2022, led to the developed
economies rearranging their energy baskets and lean towards conventional fuels. Let me
assure you that we are focused on accelerating the traditional energy avenues, while
shaping the green energy vision. Our physical performance of 2022-23 demonstrates the
preparedness to cater to the rising demand, efficiently and sustainably.
CAPEX Goals: Delivered & Excelled
Your Company contributes to more than 25% of the total Capex incurred
by PSUs under the Ministry of Petroleum & Natural Gas, reflecting its energy
leadership. For 2022-23, your Company achieved a Capex of H 37,287 Crore, which is 131% of
the utilisation value budgeted for the fiscal year. The ambitious Capex of H 30,395 Crore
for 2023-24 reiterates our commitment to serve the nation with all its might, in the years
ahead.
Refineries: Redefining Possibilities
In the year 2022-23, our refineries operated at a record capacity
utilisation of over 103% and achieved the highest ever crude processing volume of 72.4
Million Metric Tonnes (MMT). In fact, we continued to push boundaries to step-up the
operational efficiency of the refineries, expanded the crude basket to add 36 new crude
oil grades (reaching 247 grades) and undertook multiple projects to strengthen our core
capabilities.
In August 2022, the Prime Minister inaugurated the 2G Ethanol Plant at
Panipat, marking a significant milestone in sustainability. The first Wet Sulphuric Acid
Plant was commissioned at Haldia, and the Linear Alkyl Benzene (LAB) unit at Gujarat was
revamped. I am happy to share that your Company has formed a Joint Venture Company,
'Cauvery Basin Refinery & Petrochemicals Ltd', with the subsidiary company Chennai
Petroleum Corporation Ltd. (CPCL), to establish a 9 MMTPA Cauvery Basin Refinery (CBR) at
Nagapattinam in Tamil Nadu.
To ensure uninterrupted energy access for India's rising socio-economic
demands, we are investing over H 1 Lakh Crore in strategic brownfield capacity expansions.
The key projects under execution include refinery expansions at Panipat Refinery (from 15
to 25 MMTPA), Gujarat Refinery (from 13.7 to 18 MMTPA), Barauni Refinery (from 6 to 9
MMTPA), Digboi Refinery (from 0.65 to 1 MMTPA); these along with CBR (9 MMTPA) will
augment the refining capacity by over 26 MMTPA, taking the group refining capacity of your
Company to about 107 MMTPA in the near future.
As part of your Company's forward-looking outlook, the bouquet of
value-added offerings is continually being enhanced. The upcoming Catalytic Iso-Dewaxing
(CIDW) units at Haldia and Gujarat refineries will boost the production of Lube Oil Base
Stock (LOBS), the base ingredient of lubricants. This will give a fillip to 'Atmanirbhar
Bharat' by reducing India's import dependence by almost 25%, while cementing leadership in
the SERVO lubes segment. A 530 TMT LOBS plant is also being set up at Panipat Refinery.
Petrochemicals : Expanding footprints of success
Petrochemical integration is the way forward for us in all our refining
investments, vital for mitigating the risks from business uncertainties, while enhancing
the value of every molecule in the hydrocarbon chain. During the year 2022-23, we
continued to make significant strides in this vital sector by expanding our petrochemical
capacity from 3.7 MMTPA to 4.1 MMTPA and attained an annual petrochemical sale of 2.23 MMT
with a remarkable 4% growth in the Paraxylene (PX)/Para Terephthalic Acid (PTA) sales
segment.
Your Company continues to drive progress and self-reliance in India's
petrochemical sector with strategic investments. These include implementing a 387 KTA
Styrene unit and a 60 KTA Poly Butadiene Rubber (PBR) plant at Panipat to support the
growing demand and reducing imports of Styrene and PBR. Moreover, the upcoming polyester
yarn and fibre production facility at Bhadrak in Odisha will enhance downstream
integration in the textile industry, promote resource efficiency and generate employment
opportunities.
The Board, in a key move, has approved setting-up of Paradip
Petrochemical Complex in Odisha, at an estimated cost of over H 61,000 Crore. This is our
single largest investment at a location that will raise the Petrochemical Intensity Index
and enhance India's self-sufficiency in this critical sector.
Pipelines : Channelising Energy Excellence
Our pipelines network achieved remarkable milestones, with record
throughput of over 53 MMT for the crude and 41.7 MMT for the product pipelines. During the
financial year, 2,454 km of pipelines were commissioned, taking our energy highways to a
length of 17,564 km.
Besides being 'The Energy of India, your Company continues to support
the country's energy partnerships beyond the borders. An agreement was recently inked
between India and Nepal to develop Pipeline infrastructure and Storage Terminals in Nepal.
In 2019, your Company had constructed South Asia's first cross-border products pipeline
between Motihari (India) and Amlekhgunj (Nepal), which will now be extended up to Chitwan
(Nepal); a new transnational petroleum pipeline from Siliguri Terminal (India) to Jhapa in
Nepal, will be constructed; new Terminals will come up at Chitwan and Jhapa while
Amlekhgunj will be re-engineered as a SMART terminal.
In pursuit of strengthening the energy transition pathway, we are
collaborating with Italy's Snam SpA, to explore the possibility of converting the existing
natural gas pipelines for hydrogen transportation.
Marketing : Grit, Growth, Glory
During 2022-23, our Marketing network continued its expansion spree,
taking our customer touch points across the country to over 60,000 that include 36,445
fuel stations and 12,864 LPG distributorships. Additionally, we have acquired 41 sites to
develop Way Side Amenities (WSA), including 10 sites on the Delhi-Mumbai Expressway, which
will significantly bolster our presence on India's fast-growing highway networks.
IndianOil's strategically designed large-format fuel stations SWAGAT, are tailor-made to
suit the needs of highway travellers are turning new leaves of customer delight.
In addition to this, your Company also launched its first retail
merchandising store, 'IO Store' in Bengaluru, for an elevated shopping experience and
showcasing the rich diversity of the country. The second IO Store is coming up in Mumbai
soon.
We are also delighted at how warmly our branded fuels have been greeted
by the Indian automobile enthusiasts and we continue to spread our wings. Our 100 Octane
petrol XP100, is now being offered at over 200 retail outlets, 95 Octane petrol XP95 is
available at over 10,000 outlets, and the green diesel XtraGreen is being retailed at more
than 5,500 outlets.
In 2022-23, the sale of XP95 was 4.4% of the total petrol volumes;
XtraGreen registered a sale of 0.71% of the total diesel sold. Going forward, by the end
of 2023-24, we aim to achieve a conversion target of 10% for XP95 and 5% for XtraGreen, to
step up the revenue from branded fuels.
Our niche LPG brands, Munna, XTRATEJ, NANOCUT, and Chhotu are
performing well. I am happy to share that in LPG, our innovative streak has extended well
beyond product customisations. To ensure seamless tracking, transparency, and trust among
Indane customers, your Company, launched a pioneering QR code-based 'Track N Trace' pilot
initiative for LPG cylinders on September 02, 2022. This transformative endeavour serves
as a testament to your Company's commitment to digital leadership, elevating the customer
experience to new heights.
India's most loved homegrown lubricant brand SERVO is also on a
sensational trajectory and is attracting endorsement of the very best. On World
Environment Day 2023, your Company's brand ambassador, John Abraham launched two premium
lubricants. Servo Hypersport F5, a fully synthetic 4T Engine Oil for motorbikes
exemplifying SERVO's promise of delivering best-in-class performance. SERVO Grease Miracle
offers a sustainable, high-performance solution crafted from non-lithium indigenous raw
materials, showcasing our commitment to provide eco-friendly alternatives.
Committed to an 'Atmanirbhar Bharat'
In another remarkable achievement, IndianOil became the first Company
in India to produce and market AVGAS 100 LL, a specialised aviation fuel for two-stroke
piston engines, used by pilot training schools and army establishments. Your Company also
shipped a batch of the product to Papua New Guinea in January 2023, marking a historic
moment that positioned India as an exporter of this niche fuel, from being an importer.
Your Company has also pioneered the development of high precision
Reference Fuels in India, for certification and benchmarking by Original Equipment
Manufacturers (OEMs), automobile companies and fuel testing agencies. The first batch of
the specialised petrol has recently been produced at Paradip refinery. Panipat Refinery
will be producing the Diesel reference fuel shortly. The availability of the specialty
fuels in the country has evinced keen interest from the stakeholders, and the first sale
of reference petrol to Maruti Suzuki India Ltd., is underway.
Nurturing the Nation's Green Energy Pathways
As I mentioned earlier, to bolster India's Net- Zero ambitions by 2070,
your Company has resolved to go for Net-Zero in operational emissions (Scope 1 & 2) by
2046. From well over a decade before the declaration, the teams have been relentlessly
working on green energy pathways to catalyse India's green transition, including emission
mitigation, energy efficiency, fuel replacement, and renewable energy projects. To meet
the funding requirements for these as well as other projects, the Board of the Company has
recently announced issue of equity shares on Rights Basis to its existing shareholders, up
to H22,000 Crore. The issue of equity shares would also improve the ability of the Company
to raise debt for the projects. The shares are proposed to be issued during 2023-24,
subject to statutory approvals.
The Green Umbrella Entity
We have set out to consolidate the existing green assets under one
umbrella. This announcement, made during the inaugural IndianOil Green Energy Summit held
on March 15, 2023, set the stage for our rapid expansion across sustainable energy
sectors. These include biofuels, renewables, green hydrogen, and low carbon value chains
including Carbon offsets and CCUS (Carbon Capture, Utilisation, and Storage).
Our ambitious targets include establishing a portfolio of 5.5 GW
Renewable Energy and producing 0.7 MMT Biofuels by 2025; achieving 31 GW Renewable Energy,
producing 4 MMT Biofuels, including Biogas by 2030, and 200 GW Renewable Energy, 7 MMT
Biofuels, and 9 MMT Biogas by 2050.
Betting big on Hydrogen
IndianOil has been taking significant strides to strengthen the
hydrogen ecosystem. Our R&D Centre has been at the forefront, assessing multiple
hydrogen production pathways, including solar electrolysis, biomass gasification, and
bio-methanation. Additionally, we have initiated the demonstration of fuel cell technology
in fuel cell buses, and our prefeasibility studies for heavy-duty applications are well
underway. These pioneering endeavours exemplify our unwavering dedication to green energy
solutions.
It gives me immense pleasure to share that your Company is developing a
10 KTA green hydrogen capacity at Panipat Refinery. Furthermore, we have set up India's
first Hydrogen dispensing station at our R&D Centre in Faridabad, NCR, followed by a
station in Gujarat Refinery, to promote hydrogen mobility.
Additionally, recognising the immense potential of green hydrogen, we
have joined hands with ReNew and Larsen & Toubro (L&T) Limited to strengthen the
green hydrogen ecosystem in India.
Unbottling Possibilities
In line with our commitment towards environmental conservation,
IndianOil launched the 'Unbottled' campaign, aiming to convert over 100 Million PET
bottles annually into uniforms for our on-ground teams, non-combat uniforms for the armed
forces, and other stakeholders. The campaign has not only brought us immense pride but has
also garnered attention and recognition on a global scale. During India Energy Week held
in February 2023 in Bengaluru, I had the privilege of presenting a sustainable jacket to
our Prime Minister. The 'unbottled' apparels are now available at select fuel outlets in
Delhi NCR.
Your Company has also introduced Cycloplast, IndianOil's brand of
polymer recyclates that combine recycled petrochemicals with a portion of virgin or solo
plastic, This is poised to revolutionise the industry, fostering sustainability, and
significantly curbing the production of solo plastic,
Wave of Sustainability in Aviation Fuelling
In a historic milestone, the Petroleum Minister received India's
inaugural commercial flight powered by Sustainable Aviation Fuel (SAF) in May 2023,
marking a significant step towards decarbonising air travel, Your Company is leading the
charge in India's sustainable aviation fuel segment, An SAF Plant of 86,8 Thousand Metric
Tonnes Per Annum (TMTPA) capacity is being set-up at Panipat based on LanzaJet technology,
Your Company has formed a Joint Venture with Praj Industries Ltd,, to
develop SAF and other biofuels, We are poised to achieve the target of blending 2%
biofuels in Aviation Turbine Fuel (ATF) by 2030, propelling our environmental stewardship,
Changing Green Mobility landscape
Building upon the existing battery swapping services available at 78 of
our energy stations, your Company's Board has approved the formation of a 50:50 Joint
Venture in India, with Sun Mobility, Singapore, for setting up Battery Swapping
infrastructure at IndianOil's Retail Outlets as well as third party sites across India,
Your Company would also be making equity investment in Sun Mobility Singapore,
Pathbreaking initiatives like these will give us a firm foothold in the battery
manufacturing ecosystem, creating a diversified energy future,
Your Company has a Joint Venture with Phinergy, Israel to commercialise
Aluminium-Air battery technology in India, The Joint Venture will be creating the first
ever ecosystem for Al-Air energy in India, including R&D, manufacturing and deployment
of the system, Currently, it is in pre-commercialisation stage,
Expanding Renewables, Optimising Natural Bounties
Your Company continues to expand its renewable energy capacity through
collaborations with leading companies and has joined hands with NTPC Green Energy Limited,
to form a JV for providing 650 MW of round-the-clock green power for the upcoming refinery
projects, This is a unique initiative that demonstrates the successful adoption of
renewable energy for energy intensive plants in various industries,
Your Company is also collaborating with SJVN Limited for expanding the
renewable bouquet with solar, wind, hydro and hybrid power, The JV will also develop
Energy Storage Systems for the supply of 24X7 power, These partnerships will accelerate
the development of advanced technologies and infrastructure for green hydrogen production,
storage, and distribution, playing a vital role in India's transition to clean energy,
While greening up the energy mix, your Company is actively pursuing
initiatives to reduce water footprint and promote sustainable water management, A
first-of-its- kind Sewage Treatment Plant (STP) has been established under
Public-Private-Partnership (PPP) model at Laxmi Nagar, Mathura, It has reduced the fresh
river water intake by about 8 Million Litres per day (MLD) for Mathura Refinery, replacing
it with treated sewage water, There are plans to replicate this initiative across other
refineries as well, Gujarat Refinery too has started utilising the treated water from
Vadodara Municipal Corporation's Rajiv Nagar STP,
Greening the Road to Energy Independence
Your Company is exploring various indigenous pathways to enhance
domestic fuel production and strengthen India's energy independence,
Last year, energy Public Sector Enterprises (PSEs) achieved the 10%
Ethanol blending target in June, six months ahead of the target, Further, the Ministry of
Petroleum & Natural Gas allowed the Oil Marketing Companies to sell petrol blended
with up to 20% ethanol (E- 20), from April 01, 2023, Subsequently, E-20 was formally
launched by the Prime Minister on February 06, 2023 at select fuel stations, Your Company
has already commenced the supply of E20 fuel from 382 fuel stations and is currently
blending about 12% ethanol in petrol,
Your Company is also spearheading the promising SATAT initiative that
aims to boost the availability of biofuels as a viable green automotive option, while
reusing organic waste and strengthening the rural economy, Your Company's pioneering CBG
retail brand 'Indigreenj continues to enhance its reach, By the end of 2022-23, your
Company commissioned 22 CBG plants, offering Biogas through 46 Indigreen outlets, Notably,
a 200 Tonnes Per Day (TPD) plant has been set up in Gorakhpur using agri-crop residue and
providing an eco-friendly solution for rice straw disposal, In FHingonia, near Jaipur, a
100 TPD cattle dung based CBG plant has been set up at the FHingonia Cattle Rehabilitation
Centre, The biogas will fuel the kitchens of Akshay Patra Foundation and provide meals to
school children, March 12, 2023 was a landmark day when Union Minister of Road Transport
& Plighways, flagged-off the trials of MD-15 (Methanol blended diesel) powered buses
in Bengaluru,
This demonstrates our sustained efforts to strengthen India's energy
independence, Besides, India's abundant coal reserves can be used for Methanol production
for mobility,
Go Green forays beyond energy landscape
Beyond our operations and products, we are scripting a new chapter in
India's biodiversity conservation, In partnership with the National Tiger Conservation
Authority (NTCA), we are powering the Cheetah relocation project, We are also supporting
conservation of endangered species like the Single-Florned Rhino and Olive Ridley Turtle,
From protecting coastal ecosystems to preserving tiger habitats in Sunderbans, we are
taking steps to make a positive difference to the world,
Championing Social Stewardship Health
Your Company is proud to be a catalyst for social change and continues
to strengthen the legacy by empowering communities, igniting hope, and transforming lives
of fellow Indians, One such critical foray is our commitment to strengthen India's fight
to eliminate Tuberculosis (TB), We are supporting the Central TB Division (CTD) under the
Ministry of Health and Family Welfare (MoH&FW) to undertake intensified TB elimination
projects in the states of Uttar Pradesh, Chhattisgarh, Maharashtra, and Uttarakhand which
is being expanded in the state of Haryana as well.
Social Transformation
In yet another transformational initiative, your Company has joined
hands with various State Prison departments, to set up 'Umeed- A Hope' prison retail
outlets, that will be operated by some of the current and former inmates. The fuel
stations will also have merchandise stores, to market goods produced by the inmates.
Beyond the commercial intent, the project will empower the inmates with necessary skills,
fostering dignity, and supporting their reintegration into the society
Currently, 46 such fuel stations are being set up, while the
merchandise stores are operational at four 'Umeed' outlets in Tamil Nadu, offering a
diverse range of local products.
Preserving Heritage
Your Company has also been scripting new chapters in conserving India's
cultural legacy with the IndianOil Foundation (IOF). In association with ASI and other
bodies, the Foundation is protecting the country's glorious heritage by developing
world-class facilities at prominent tourist sites. It is also committed to enriching the
lives of the communities and preserve ecological balance.
Besides this, your Company has joined hands with the Ministry of
Tourism, Government of Maharashtra, for restoring the magnificence of the iconic Gateway
of India with a befitting illumination and the 'light and sound' show at the monument.
Building a Nation of Champions
I am delighted to share with you that your Company constantly strives
to bring positive social change through sports and contribute towards making India a
sporting nation. Supporting sports players through financial assistance, training
facilities, and scholarships, has helped many players realise their dreams and reach their
full potential. Under the CSR programme 'IndianOil Acers,' 250 scholarships for 20 sports
were provided to young players, half of which were awarded to young women. Your Company
has also launched the 'IndianOil Shakti' initiative to support 30 girls in Athletics.
I would like to share some ground-breaking initiatives by Your Company
that have left indelible marks on India's sporting landscape. These include forming the
first Corporate Women's Hockey Team, supporting IndianOil sportspersons, who have notched
up historic victories for the country, and fostering the budding sporting talent. Our
sports stars earned rich laurels, including the highest national honours like Major Dhyan
Chand Khel Ratna Award and Arjuna Awards. They kept the national flag flying high during
the Commonwealth Games, Thomas Cup, world championships in badminton, table tennis, tennis
grand slams, chess championships, and team sports like cricket and hockey tournaments.
In a trailblazing move to promote the specially-abled sportspersons of
the country, your Company is backing the Indian Para- athletes through a special
initiative, 'Road to Paralympics 2024' We remain committed to supporting these
extraordinary, gritty, sportspersons for the upcoming Asian and Paralympic Games and
fulfill the shared dream of bringing laurels for the nation.
I would like to share the success story of our landmark social foray,
'Parivartan - Prison to Pride' that stands as a shining example of your Company's
commitment to social responsibility and transformative change. Initiated on Independence
Day 2021, this programme aims to reintegrate the prison inmates into the society,
leveraging the power of sports. Extending the benefits to young inmates at juvenile
correction centres, 'Nai Disha - Smile for Juvenile' was launched on Republic Day 2023.
After the roll-out of the fifth phase of the campaign on July 15, 2023, the twin
programmes have touched the lives of about 3,600 inmates in about 80 prisons and
correction centres, across 25 states of India.
The phenomenal impact of 'Parivartan' came to the forefront when the
chess team of inmates from Pune's Yerawada Prison emerged as the first Indian team to
secure a bronze medal at the Intercontinental Chess for Freedom Online Championship for
Prisoners, organised by FIDE (World Chess Federation) in 2022. In May 2023, at the 'Chess
for Freedom' conference held in the USA, the path breaking project earned widespread
accolades. The outreach has also won your Company the coveted Sportstar Aces Award-2023 in
the category of 'Sports for Social Good'
IndianOil People: Catalysts of Progress and Excellence
In the pursuit of greatness, it is often said that numbers speak louder
than words. Yet, behind those remarkable figures lie the inspired people who make them
possible. At IndianOil, we firmly believe that people-centricity is the cornerstone of our
blueprint for excellence. We recognise that our achievements are not merely the result of
strategies and investments but of the collective passion and dedication of every
individual who contributes to our success.
Through diligent adherence to best practices and strict protocols, we
ensure that an unwavering focus on the well-being of our people drives our progress. And
genuine well-being must begin with inclusivity.
On International Women's Day 2023, we announced three crucial policy
changes to further our goal of workplace equity. These changes focus on providing more
flexible and compassionate maternity policies, complementing our existing efforts to
empower women. Initiatives such as transportation support for women employees at touring
locations and access to well- equipped creche facilities have already been implemented.
However, fostering a cultural shift that encourages both men and women to share family
responsibilities is essential. By creating an equitable society, we can ensure that
individuals can pursue their careers and family lives without sacrificing on either front.
We remain dedicated to fostering the holistic well-being of IOCians.
While we have a robust system in place for ensuring physical health of our team, we have
now introduced counselling services through our Employee Assistance Programme 'Paramarsh'
as a pilot project, in some of our offices in Delhi-NCR. The aim is to safeguard the
mental wellness of our energy soldiers who are working hard amid challenges with aplomb.
Moreover, to nurture an impeccable safety culture in our workplaces,
diligently adhering to best practices and strict protocols, the first IndianOil Safety Day
was observed on October 29, 2022 in Jaipur. The commemoration also marked the inauguration
of a memorial called 'Smriti Sthal' to pay homage to the precious lives lost, including
those of the energy soldiers in the line of duty. The occasion served to reiterate the
learnings from a major incident that took place at the location in 2009 and the resolve to
uphold the highest safety standards while energising the country.
Talking of safety, road accidents of petroleum tank trucks (TT) have
been known to cause disruption in public carriageways and often lead to fatalities, damage
to public property and pollution. On an average, about 16,000 tank trucks traverse almost
15 Lakh km daily, across varied terrains to deliver petroleum products across the country.
Similarly, 24600 vehicles for bulk and packed LPG ply almost 25 Lakh km every day to fuel
the kitchens across India.
To ensure safe driving conditions, the existing Vehicle Tracking System
(VTS) was revisited and streamlined. Key parameters like speed, harsh manoeuvring, sudden
braking, and acceleration were monitored, and accident- prone zones were analysed across
the country. Based on the findings, voice alerts were introduced for the drivers breaching
the speed limit and plying of trucks during the night was brought down by 90%. I am happy
to share that the focussed monitoring of the VTS has resulted in significant reduction in
road accidents and fatalities.
As we look ahead, we are filled with great optimism for the future. We
are committed to leveraging our strengths, exploring new vistas, embracing exciting
opportunities and driving continued growth and create value for our stakeholders and
communities.
The best part is that we are spreading our wings in the vast horizon,
beyond borders. Besides being the energy custodians of the nation, we are supporting
India's vision of strengthening the energy scenario of neighbouring countries like Nepal,
Sri Lanka and Bangladesh, among others.
Our journey is marked by a relentless pursuit of greatness, where each
milestone achieved becomes a stepping stone to a brighter future. Undoubtedly, the voyage
has been exciting and challenging in equal measures, but it has also been full of new
opportunities, opening new vistas in the energy business. For us, the essence of true
achievement lies not in numbers alone, but in the inspired souls, 1.4 Billion Indians who
breathe life into those figures, reflecting the spirit of 'Nation- First' in all that we
do.
Together, we form an indomitable force united in our quest to
illuminate the path of progress for our beloved nation. Let us be the change we want to
see in the world and cement our position as the 'Energy of India,'
Thank you for your unwavering trust and support.
Sd/-
Shrikant Madhav Vaidya
Chairman, IndianOil
  Â
Indian Oil Corporation Ltd
Directors Reports
Dear Shareholders,
On behalf of the Board of Directors, it is my privilege to present the
64th Annual Report and the 6th Integrated Annual Report of the
Company for the Financial Year ended March 31, 2023, along with the Audited Standalone and
Consolidated Financial Statements and Auditor's Report thereon.
The year 2022-23 was excellent for the Company as it demonstrated
remarkable resilience to achieve significant milestones in operational performance,
despite various challenges. Your Company ensured accelerating the progress of the Indian
economy, which was amongst the fastest growing economies in 2022-23. The ongoing conflict
between Russia and Ukraine continues to have significant ramifications, not just for the
two countries involved but also for the global economy. Despite the global energy sector
experiencing waves of volatility, IndianOil remained committed to fueling the nation with
excellence.
Performance Review Financial
The Company reported the highest Revenue from Operations by any Indian
Company on Standalone as well as Consolidated basis during 2021-22. During 2022-23, your
Company once again surpassed its best, by notching up the highest-ever Revenue from
Operations by any Indian company. The Company also achieved its highest ever sales volume.
The summarised standalone performance and appropriations for 2022-23
are given below:
| Particulars |
2022-23 |
2021-22 |
|
US$ Million |
7 Crore |
US$ Million |
7 Crore |
| Revenue from Operations |
1,16,259 |
9,34,953 |
97,765 |
7,28,445 |
| (Inclusive of Excise Duty & Sale of Services) |
|
|
|
|
| EBITDA |
3,543 |
28,487 |
6,384 |
47,568 |
| (Earnings Before Finance Cost, Tax, Depreciation &
Amortisation) |
|
|
|
|
| Finance Cost |
862 |
6,930 |
648 |
4,829 |
| Depreciation and Amortisation |
1,475 |
11,859 |
1,477 |
11,006 |
| Profit Before Tax |
1,206 |
9,698 |
4,259 |
31,733 |
| Tax Provision |
181 |
1,456 |
1,013 |
7,549 |
| Particulars |
2022-23 |
|
2021-22 |
|
|
US$ Million |
7 Crore |
US$ Million |
7 Crore |
| Profit After Tax |
1,025 |
8,242 |
3,246 |
24,184 |
| Appropriation: |
|
|
|
|
| Interim Dividend paid |
- |
- |
1,109 |
8,263 |
| Final Dividend paid |
411 |
3,305 |
185 |
1,377 |
| Insurance Reserve (Net) |
2 |
20 |
3 |
19 |
| General Reserve |
- |
- |
1,949 |
14,524 |
| Balance Carried to Next Year |
611 |
4,916 |
- |
- |
Share Value
| Particulars |
2022-23 |
2021-22* |
|
US$ |
7 |
US$ |
7 |
| Cash Earnings Per Share |
0.18 |
14.60 |
0.34 |
25.55 |
| Earnings Per Share |
0.07 |
5.98 |
0.24 |
17.56 |
| Book Value Per Share |
1.19 |
97.85 |
1.26 |
95.33 |
Note: Exchange Rate used
For 2022-23: Average Rate 1 US$ = 7 80.42 and Closing Rate 1 US$ = 7
8218 as on March 31, 2023 For 2021-22: Average Rate 1 US$ = 7 74.51 and Closing Rate 1 US$
= 7 75.80 as on March 31, 2022
* Value re-stated after adjusting for bonus issue.
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
In July 2022, the Company issued bonus equity shares in the ratio of
1:2, i.e., 1 new equity share for every 2 equity shares held on the record date.
Consequently, the paid-up share capital increased from 7 9,414.16 Crore to 7 14,121.24
Crore.
Further, the Company also issued Unsecured, Rated, Listed, Taxable,
Redeemable, Non-Convertible Debentures (NCDs) aggregating to 7 10,000 Crore on private
placement basis, during the year, which were listed on the Debt Segment of the National
Stock Exchange of India and BSE Limited. The funds were utilised for the purpose for which
they were raised, and there were no deviations or variations in the utilisation. Further,
the Company redeemed NCDs amounting to 7 3,000 Crore on maturity date, i.e., November 25,
2022.
Dividend
The Board of the Company has formulated a Dividend Distribution Policy,
and the dividends declared/recommended are in accordance with the said policy. The policy
is hosted on the website of the Company at: https://www.iocl.com/download/
Dividend-Distribution-Policy.pdf
The Board of the Company has recommended a final dividend of 7 3/- per
share for the year, with a total pay-out of 7 4131.47 Crore equivalent to 50.13% of the
PAT. This is the 56th consecutive year of dividend declaration by the Company,
with a cumulative pay-out of 7 90,636 Crore (including the proposed final dividend for
2022-23).
Contribution to Exchequer
The Company has been one of the largest contributors to the Government
exchequer in the form of duties, taxes, and dividends. During the year 72,40,185 Crore was
paid to the exchequer as against 72,64,436 Crore paid in the previous year, a decrease of
9% over the previous year mainly due to cut in excise duty on MS & HSD during the year
by Government of India. An amount of 71,16,271 Crore was paid to the Central Exchequer and
71,23,914 Crore to the States Exchequer compared to 71,57181 Crore and 71,07,255 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, which forms part of the Integrated
Report. The highlights of the Consolidated Financial Results are as under:
| Particulars |
2022-23 |
2021-22 |
|
(US$ Million) |
(? Crore) |
(US$ Million) |
(? Crore) |
| Revenue from Operations (Inclusive of Excise Duty & Sale
of Services) |
1,18,305 |
9,51,410 |
98,875 |
7,36,716 |
| Profit Before Tax |
1,870 |
15,038 |
4,602 |
34,289 |
| Profit After Tax |
1,455 |
11,704 |
3,453 |
25,727 |
| Less: Share of Minority |
237 |
1,912 |
84 |
625 |
| Profit for the Group |
1,218 |
9,792 |
3,369 |
25,102 |
Note: Exchange Rate used
For 2022-23: Average Rate 1 US$ = ^ 80.42
For 2021-22: Average Rate 1 US$ = ^ 74.51
Operational Performance
The operational performance of the Company during the year was as
under:
| Particulars |
2022-23 |
2021-22 |
| Refineries Throughput |
72.408 |
67665 |
| Pipelines Throughput |
97382 |
85.520 |
| Product Sales (inclusive of Gas, Petrochemicals &
Exports) |
95.714 |
86.407 |
Refineries
IndianOil Refineries achieved significant milestones during Financial
Year 2022-23 and worked towards its plans for future growth. The Company's refineries
achieved the highest-ever annual crude processing of 72.41 MMT in 2022-23, surpassing the
previous best of 71.82 MMT in 2018-19. During the year, capacity utilisation at 103.4% was
higher than previous year's utilisation of 96.6%.
The Crude throughput of IndianOil group refineries, including Chennai
Petroleum Corporation Limited, (a subsidiary), was 83.72 MMT during the year, with
capacity utilisation at 103.9%. Distillate Yield for the year was 78.7% and the refineries
were able to achieve 98.1% operational availability, The Fuel & Loss during 2022-23
was lower at 8.9% as compared to 9.5% during 2021-22. On the Energy Conservation front,
IndianOil Refineries recorded the lifetime best specific energy consumption of 68.0 MBN
during the year, which is 76% lower than 2021-22, and 4.2% lower than the previous best of
71.0 MBN in 201819. The refineries achieved another milestone w.r.t best achieved Energy
Intensity Index (EII) of 96.1, which is 76% lower than 2021-22, and 1.9% lower than the
previous best of 979 in 2018-19.
The Company expanded its crude basket by including 36 new grades of
crude from different regions such as Africa, Middle East, America, and Russia, among
others, during Financial Year 2022-23 and now has a total of 247 grades of crude.
On the Petrochemical front, Naphtha throughput during Financial Year
2022-23 was lower at 2.1 MMT, as compared to 3.0 MMT during 2021-22, due to revamp
shutdown of Panipat Naphtha Cracker unit in September 2022. The overall polymer production
(Polyethylene + Polypropylene) was 1.35 MMT. Adding to the Company's petrochemical
capacity, Mono Ethylene Glycol (MEG) unit at Paradip was commissioned in February 2023.
One-of-its-kind 2G ethanol plant (for production of bioethanol from
rice straw) at Panipat Refinery was dedicated to the nation on World Bio-Fuel day in
August 2022. The year also saw significant achievements such as the commissioning of
India's first Wet Sulphuric Acid Plant at Haldia, revamp of LAB unit at Gujarat, PSA
Offgas to Ethanol using Lanzatech technology (3G Ethanol) at Panipat, among others. The
commissioning of India's first Green Cooling Tower at the Company's Barauni Refinery is an
example of IndianOil's commitment to exploring and implementing energy- efficient and
environment-friendly alternatives to conventional systems. Furthermore, IndianOil produced
and dispatched 12% Ethanol Blended Petrol (EBP) from its units in line with its target of
supplying 20% EBP by 2025. IndianOil has started production of Low Sulphur Low Aromatic
Kerosene from its Gujarat & Guwahati Refineries by reducing the pungent smell, high
smoke and carbon deposits, for the Indian Army which uses it for heating and cooking
purposes at high altitude. Further, in line with the Company's expansion plans, a Joint
Venture agreement was signed with CPCL for the formation of Cauvery Basin Refinery and
Petrochemicals Ltd, which would set up a 9 MMTPA refinery at Nagapattinam in Tamil Nadu.
Pipelines
Being the safest, efficient, cost-effective, and environment friendly
way to transport fuel and gas, the pipelines are a vital part of IndianOil's energy
infrastructure. The Company's crude pipelines achieved a record throughput of 53.4 MMT
which surpassed the previous highest throughput of 51.3 MMT achieved during Financial Year
2018-19.
The Company's product pipelines achieved a record throughput of 41,7
MMT which surpassed the previous highest throughput of 379 MMT achieved during Financial
Year 2019-20, The annual MoU targets were surpassed on the back of robust demand for
petroleum products during the year,
Gas pipelines too witnessed a record throughput of 3,077 MMSCM, which
was higher than the previous highest throughput of 2,985 MMSCM achieved during 2021-22,
Your Company commissioned 2,454 km of pipelines during the year, taking
the total length of pipeline network to 17,564 km with a capacity of 119,20 MMTPA (crude
& product pipelines) and 48,73 MMSCMD (gas pipelines) as on 31,03,2023,
An MoU was signed with National Highways Authority of India (NHAI) in
June 2022 for according permissions to cross each other's facilities in a time-bound
manner, This would help IndianOil to reduce the time in getting crossing permissions from
NHAI for pipeline projects,
Under IndianOil Start-Up Scheme-1, Vasitars Pvt, Ltd, was onboarded for
development of "Nano Filler Reinforced Polymer Composite Wrap" to repair
corroded pipelines, IndianOil acquired 2,1% equity stake in Vasitars Pvt, Ltd,
Your Company is currently executing pipeline projects amounting to
approx, H 35,000 Crore, which upon completion by February 2026, would increase the
Company's pipeline network length to around 21,298 km and enhance capacity to 164,37 MMTPA
and 50,73 MMSCMD for liquid and gas pipelines, respectively,
Marketing
During the year, the international crude oil and products markets were
in a turmoil, resulting in a challenging environment for the Company, Despite
difficulties, your Company rose to the occasion and ensured uninterrupted supply and
availability of fuels across its network, The Company maintained its position as the
market leader in the industry, with an overall market share of 44,6% and sales volume of
85,8 MMT (excluding LNG) during 2022-23, Amongst the PSUs, IndianOil's overall market
share stood at 475%, with market share gains in various products,
During the year, your Company commissioned a total of 1,784 Retail
Outlets (ROs) and Kisan Seva Kendras (KSKs), 303 CNG stations, and 19 CBG stations,
consistently building a formidable retail network, totaling to 36,285 retail outlets,
1,788 CNG stations, and 45 CBG stations, IndianOil also bagged 41 (28 NHAI + 13 State
Govt, Undertakings) Way Side Amenities (WSA) sites, which include 10 sites on the
prestigious Delhi - Mumbai Expressway, The first Greenfield WSA was commissioned in
Rajasthan, The Company also commissioned a Retail Outlet at the world's highest altitude
in Village Tangtse, District Leh in Ladakh UT at an altitude of 12,933 feet, which is
en-route the renowned Pangong Lake,
During the year 1,490 ROs were solarised, taking the total count of
solarised ROs to 20,992, Further, to keep the environment clean,
2.751 ROs have been provided with a Vapour Recovery System (VRS), which
includes all ROs in NCR, 85 supply locations of the Company are GreenCo certified, out of
which 50 were certified during 2022-23, During the year, 3,60 Lakh trees were planted at
various marketing locations across the country,
2.751 ROs have been provided with a Vapour Recovery System (VRS), which
includes all ROs in NCR, 85 supply locations of the Company are GreenCo certified, out
of which 50 were certified during Financial Year 2022-23,
On the branded fuel front, your Company has been expanding the
footprint of XP100 (100 octane MS), XP95 (95 octane MS), and XtraGreen (cleaner and
greener HSD) across India, During the year, your Company added XP100 at 72 ROs (total 190
ROs), XP95 at 2,514 (total 9700+ ROs), and XtraGreen at 4127 ROs (total 4900+ROs), The
newly launched XP100 premium petrol brand has been readily accepted by the customers and
has been bestowed with the coveted Super Brand status,
XTRAREWARDS, the loyalty membership program for urban markets, crossed
the 2,7 Crore mark, XTRAREWARDS is India's first online rewards program designed
exclusively to benefit the large number of IndianOil customers who have been patronizing
the brand for over five decades,
IndianOil is the first in the industry to have signed an MoU with NPCI
(National Payment Corporation of India), for the implementation of new-age digital payment
solutions, To enhance the digital experience at the Retail Outlets, SD-WAN
(software-defined wide area network) based dual network connectivity solution has been
provided at 15,112 ROs, The Integrated Transaction Processing Server (ITPS) was rolled out
across 27,932 ROs averaging 12 Lakh Transactions per day, Your Company has embarked on a
journey to implement a new Integrated Planning Tool with AI/ML capability for end-to-end
supply chain optimisation,
For providing sustainable and clean energy solutions, your Company has
made rapid progress in e-mobility, During 202223, 3321 EV Charging Stations (EVCS) &
44 Battery Swapping Stations were commissioned (cumulatively 5,461 EVCS & 76 Battery
Swapping Stations), taking the tally to 67% market share among PSUs, In addition, it is
planned to set up 3rd party EVCS in public places, depots, and fleet hubs,
IndianOil has already installed EV Charging Stations at some of the prime locations in the
country, such as the Taj Mahal (Agra) and Chennai Airport, IOC Phinergy Pvt, Ltd,,
IndianOil's JV with Phinergy Israel, is working on Aluminium-Air battery integration in
Electric Vehicles, both 3-Wheelers and 4-Wheelers, with leading Auto OEMs in India,
Your Company is making significant investments towards the look &
feel of the ROs, covering Driveway, Canopies, Monoliths, Unipoles, and Retail Visual
Identity (RVI) Elements, Further, for door-to-door delivery of diesel, 120 Mobile
Dispensers were added during the year, taking the total number to 1161, Given its
symbiotic relationship with tourism sector, IndianOil has constructed 75 top-notch
restroom facilities near National Parks at its Retail Outlets. Under IndianOil Start-up
Scheme, Netprise Solutions was incubated for Dispensing Unit (DU) development. The
start-up has developed a premium DU with state-of-the-art functionalities. During the
year, the Company launched its flagship retail merchandise store, "IO" at a
Company Owned Company Operated RO in Bangalore.
The LPG business continued to grow and registered a sale of 13.7 MMT,
surpassing the previous year's performance, registering a growth of 1%, with a market
share of over 45%. The year recorded the highest-ever bulk LPG sales of 485.7 TMT. The
year also marked LPG supply to Nepal Oil Corporation and LPG imports by road from
Bangladesh.
To enhance IndianOil's bottling capacity and improve the supply of LPG
to customers, 10 bottling plants were commissioned during the year, 5 in Greenfield and 5
through Private bottlers, thereby taking the total number of LPG locations to 108. The LPG
distributorship network was strengthened during the year, aggregating to a total of
12,861. Over 2.89 Lakh Indane composite cylinder connections were released during the
year. A new LPG brand, namely 'Munna' (2 kg FTL cylinder), was launched and was readily
accepted by the customers. The existing LPG brands XTRATEJ, NANOCUT & Chhotu,
registered a significant growth in their sales.
With focus on customer care, SMS based refill booking reminder based on
the customers' historical refill booking pattern, was introduced. In addition, Virtual
Indane Bot Assistant (VIBA), a WhatsApp Chatbot for LPG refills , and Indane LPG Track 'N'
Trace, a unique QR code for tracking the movement of cylinders across the value chain,
were also introduced during the year.
The "IndianOil One " app has been listed in the top 50 apps
based on usage in India under the "business category" by SimilarWeb, an
independent agency in data analytics. IndianOil One App is a comprehensive platform,
wherein, customers can fulfill all their energy needs, be it booking new LPG
connections/Refills, transfer of LPG connections, tracking & redeeming Loyalty points
& purchases , etc.
For the sustenance of business and to garner new business
opportunities, the Institutional Business Group entered into major long-term tie-ups with
the Armed Forces as well as with various major customers in the government departments and
the private sector.
The Supply & Operations team worked relentlessly to ensure
uninterrupted supplies during the unprecedented crisis of exceptional surge in demand from
May to June 2022 to make sure the availability of products across the nation. The full
demand of South Assam, Mizoram, and Tripura was met even after the snapping of rail
connectivity due to incessant rains from May to July 2022. Ushering a new era in the
Indo-Bangladesh relationship, the first convoy of Tank Trucks from Guwahati was flagged
off for rescue supplies to Tripura through Bangladesh. All Weather Grade HSD was developed
and supplied to the Defence Forces during the year.
Under the Government's flagship Ethanol Blended Petrol (EBP) Program,
your Company has been blending Ethanol with Motor Spirit (MS) or petrol; to enhance energy
security, reduce dependence on fuel imports, save foreign exchange, and address
environmental issues, while also boosting the domestic agriculture sector. During Ethanol
Supply Year (ESY) 2021-22, IndianOil achieved the target of 10% Ethanol Blending on
Industry basis, five months ahead of schedule. 11.6% of Ethanol blending with Motor Spirit
was done till March 2023, during the ESY 2022-23 (December 2022 to October 2023) as
against 9.18% in the previous ESY during the same period.
As the first step towards making the Lakshadweep group of islands 'Urja
Atmanirbhar,' the Administrator of the UT of Lakshadweep dedicated IndianOil's storage
depot and Retail Outlet at Kavaratti to the people of Lakshadweep.
In the aviation business, Your Company retained its market leadership
position with a market share of 61.3% during 2022-23 with domestic sales volumes of 4,514
TMT. The monthly sales recovered to 95% of pre-COVID levels. Strengthening its presence in
the Aviation sector, 5 new AFSs at Deoghar, Hollongi, INS Parundu (Ramnad), Cooch Behar,
and Belagavi were commissioned, taking the total number to 132 across the country. Your
Company is playing a major role in the Government of India's vision of enabling the
development of towns/ small cities by propelling flight movement and bringing such places
closer to the developed metros.
Your Company is the first Oil Marketing Company in India to
indigenously produce and market AVGAS 100 LL, a special aviation fuel meant for piston
engine aircraft and Unmanned Aerial Vehicles. AVGAS 100 LL, which was launched at Hindon
Air Force Station in September 2022, has superior performance quality standards, as
compared to imported grades.
SERVO, the Company's lube Superbrand turned 50 this year and continued
to maintain its leadership across user segments, including automobile, industrial, and
defence. During 2022-23, SERVO registered its highest ever sales volume of 704 TMT,
registering a growth rate of 9.5% , and the highest-ever monthly sales of 109 TMT during
March 2023 which was three times the average monthly sales of 2019-20 and one-fourth of
2019-20 annual sales volume. SERVO's sales are continuously growing, surpassing the
milestone of highest-ever volume achieved every year since 2021 and growing at
double-digit CAGR of 14.3 % since 2019-20. Innovations like Green Combo Lubricants and
dedicated oil for LNG engines reinforced IndianOil's dominance as the preferred Lube
marketer. To mark the Golden Jubilee Year of SERVO, your Company released a customised
Corporate 'My Stamp' of India Post on SERVO.
During 2022-23, SERVO received 41 OEM approvals from major automotive
companies such as Tata Motors, Ashok Leyland, MG Motors, Hero Motors, TVS Motors, Mahindra
& Mahindra, Blue Energy, Cummins, etc. SERVO expanded its footprint to Russia and the
Republic of Guinea, and is now available in 37 Countries. During the year, SERVO launched
two more green lubricants, SERVO 4T Green and SERVO Tractor Green.
SERVO forayed into the green energy business with approvals from EV
manufacturers like MG Motors, Mahindra Electric, Keto Motors and Olectra Greentech. SERVO
4T Xtra 10W-30, a new high-performance product for the 2-Wheeler segment, was also
launched during the year. The Central Insecticides Board granted approval for Servo
Orchard Spray Oil, marking IndianOil's venture in the new area of Agri business. In
another landmark effort for a sustainable, greener environment, a new SERVO container with
30% PCR (Post-Consumer Recycled) plastic was launched during the year.
The marketing infrastructure of your Company was further strengthened
during the year with the commissioning of grassroot terminals at Guntakal, Silchar,
Motihari & Asanur; brownfield terminal augmentation at Manmad, Ahmednagar, Ahmedabad,
Ratlam, and Vijayawada; and CBG plant at Hingonia.
To enhance customer recognition and trust, IndianOil undertook
significant measures like the inauguration of Light and Sound show at the iconic Gateway
of India (Mumbai), onboarding of celebrities like Amitabh Bachchan, John Abraham, and
Master Chef Sanjeev Kapoor for product endorsement, etc. As per Brand Finance's
prestigious Oil & Gas 50 Report for 2022, IndianOil has been featured as the world's 7th
Strongest Oil & Gas Brand. Brand Finance is the world's leading brand valuation
consultancy, and this recognition is a testament to team IndianOil's hard work and
commitment to customers and other stakeholders.
The Cryogenics group of the Company is a pioneer in cryogenics having
over 40 years of experience in the design and production of state-of-the-art vacuum
super-insulated Cryogenic Storage & Transport Vessels for LIN, Lox, Lar & LNG
applications. Maintaining its leadership in the Cryocans business, the cryogenic group
sold over 37,000 units of cryo-cans, during the year. Leveraging on its technological
superiority, the group is poised to become a dominant player in Cryogenics and LNG
equipment business as in the country. The Company is designing & developing LNG Fuel
Tanks, ISO Tanks, LNG dispensers, & other cryogenic equipment. Anticipating high
growth potential in Cryogenic segment, especially in regard to LNG and Liquid Oxygen, the
Company is setting up a new manufacturing facility, and the manufacturing of select
products shall commence from the new facility in 2023-24.
Research and Development
The R&D Centre anchors the Company's aspirational vision of being
'The Energy of India,' During 2022-23, the R&D Centre excelled in multiple areas, such
as lubricant technology, refining & petrochemical processes, catalysts, and pipeline
research, while also focusing on alternative and renewable energy technologies.
During the year, R&D's collective research endeavors resulted in
filing of 127 patents, bringing the total number of filed patents to 1,646 as on March 31,
2023. Further, the Company was granted 155 patents during the year, bringing the total
effective patent portfolio to 1,554.
The R&D Centre's work for the development of catalysts and process
technologies has made a significant impact towards 'Atmanirbhar Bharat' especially in
competitive and licensor- controlled areas dominated by MNCs. Major developments during
the year include: (i) successful commissioning and Performance Guarantee Test Run (PGTR)
of 400 kTA grassroots indJet? unit conducted at Barauni Refinery, using in-house
developed technology and catalyst for ATF production; (ii) successful commissioning of 80
kTA grassroots indSelectG? unit for cracked gasoline desulfurization at Guwahati Refinery
using in-house developed catalyst meeting product Sulphur of <5 ppmw & RON
improvement of ~4.0 units; (iii) in-house developed Ind-CokerAT ? technology selected for
170-220 kTA DCU revamp at Digboi Refinery to handle additional heavy vacuum residue; (iv)
265 MT of composite INDMAX catalyst manufactured and supplied for trial at Mathura
Refinery; (v) 2395 MT of in-house developed catalysts, additives and adsorbent supplied to
various Indian refineries; and (vi) commissioning of 100 TPD IBG-Max Biomethanation plant
at Jaipur for producing CBG.
The Company's R&D centre has undertaken assessment of multiple
green hydrogen production pathways based on solar electrolysis, biomass gasification and
bio-methanation with a total Green Hydrogen Production capacity ~1 ton per day. The
technology will be demonstrated in 15 fuel cell buses for establishing the efficacy,
efficiency, and sustainability of the production processes and the fuel cell technology A
pre-feasibility study of the fuel cell technology has been undertaken for heavy duty
applications for generation of critical data pertaining to fuel cell performance,
efficiency, and operational reliability of hydrogen refueling infrastructure. Two
prototype fuel cell buses provided by Tata Motors Limited to the Company are being
refueled at the Hydrogen refueling station at Gujarat Refinery and running on Ministry of
Road Transport and Highways of India (MoRTH) approved routes in Vadodara City.
The R&D Centre spearheads the Company's StartUp scheme which has
seen incubation of 24 start-ups in two rounds of funding. IndianOil is closely involved in
mentoring the start-ups through handholding by internal Process Owners till the
achievement of Proof of Concept. The milestone of 50 IPs (Patents, Trademarks, Copyrights)
has been achieved for the StartUp Scheme. Twelve new start-ups have been on-boarded for
incubation under Round-3 of the StartUp Scheme, with a committed fund value of H 1798
Crore. Further, considering the Company's current thrust on meeting Net-Zero 2046 goals, a
Start-up Round with theme 'Green Resolve - Amrit Kaal Adhyay' was launched in March 2023,
inviting proposals.
To further expand its footprint and facilitate transformation into an
integrated energy Company, IndianOil is setting up its second R&D campus at Faridabad.
The new campus named IndianOil Technology Development & Deployment Centre, is set to
be the world's largest Net-Zero (power & water) facility with GRIHA- 5 star rating and
LEED platinum standards. The campus would consist of four research centers of excellence,
namely in Alternative & Renewable Energy, Corrosion Research, Nanotechnology and
Synthetic Biology
Business Development
In line with its vision of being 'the Energy of India', IndianOil is
fast transforming itself from being India's flagship National Oil Company to a holistic
energy solutions provider. Your Company envisages increasing its share in India's energy
basket from 9% at present to 12.5%. Over the years The Company has significantly expanded
its footprints across the energy value chain and successfully created new business arms
like Petrochemicals, Natural Gas marketing, Alternative energy, Exploration &
Production etc. The performance of various business verticals during the year was as
under:
Petrochemicals
The Petrochemicals business is a pivotal value creator for the
refineries and a vital driver of the Company's future growth and profitability. IndianOil
is the second largest petrochemicals player in the country. The petrochemicals business
achieved annual sales of 2.23 MMT in 2022-23 with 4% growth over the previous year in
PX/PTA sales segment. Under the umbrella brand PROPEL, the Company offers full range of
products in all segments of petrochemicals viz. Linear Alkaline Benzene (LAB), Purified
Terephthalic Acid (PTA), Paraxylene (PX), Mono Ethylene Glycol (MEG), Polypropylene (PP),
Linear Low-Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), etc. for a wide
range of applications across industrial commercial and domestic segments thus making
PROPEL household name
During the year, the Company increased its Petrochemical capacity from
3.7 MMTPA to 4.1 MMTPA. The Petrochemical Intensity Index (PII) of the Company now stands
at 5.9%. Your Company is implementing several new projects, which will enhance the PII
further to 8.6% by 2026. The Board of the Company has accorded 'in-principle' approval for
~3 MMT of the Paradip Petrochemical Complex at Paradip, Odisha, which would produce vital
petchem products like Polyvinyl chloride, Phenol, Isopropyl alcohol & Polymers.
During the year, the Company commissioned its first fully automated
dedicated LAB terminal with state-of-the-art facilities at Dumad to further improve
service offerings to esteemed customers.
The Company has also revamped its LAB plant capacity at Gujarat
Refinery from 120 KTA to 162 KTA. With this, IndianOil has become the largest producer of
LAB in India. The Company also launched its maiden brand of recycled polymers -
'Cycloplast' as it works towards addressing plastic pollution. Furthering its efforts in
this domain, the Company launched its initiative named - "Unbottled", under
which discarded PET bottles are being recycled into 'sustainable & green' uniforms for
around three Lakh IndianOil ground force comprising fuel station attendants and Indane LPG
gas delivery personnel.
The Company's Product Application & Development Centres (PADCs) at
Panipat and Paradip have been fundamental to the Company's strong hold over the market, by
developing new polymer grades in line with specific customer requirements. During the
year, two new PROPEL import substitution grades were developed, as part of the Company's
ongoing pursuit of 'Atmanirbharta. As a testament to the Company's strong customer
outreach, during the year 10 new Original Equipment Manufacturer (OEM) approvals were
received.
Natural Gas
The year 2022-23 was one of the toughest years for the gas business in
the Indian context, because of the unprecedented increase in Global Spot LNG prices due to
geopolitical situations. Despite this, Your Company was able to maintain a 20% market
share in the RLNG segment. The sale to customers was 2.84 MMT in 2022-23 registering an
increase of 8.5% as compared to last year.
The Company executed a Gas Sale Agreement (GSA) with Hindustan Urvarak
& Rasayan Limited (HURL), a JV Company, for the supply of RLNG to its Gorakhpur,
Sindri and Barauni plants. The Company is setting up 16 LNG Retail stations on the Golden
Quadrilateral and other major National Highways of India.
Apart from acquiring a 4.93% equity stake in India Gas Exchange Ltd.
(IGX), Your Company is also an active member of IGX. From the date of its first business
purchase in September 2022, the Company purchased approx. 46.59 MMSCM through IGX during
the year 2022-23.
City Gas Distribution (CGD)
The Company along with its two JVCs, is now present in 49 Geographic
Areas (GAs) and 112 districts spread across 21 States and UTs, making it one of the
largest CGD players in the country. On a standalone basis, IndianOil has authorisations
for 26 Geographic Areas (GAs), covering 75 Districts, in 11 states and Union Territories
(UTs).
71 CNG ROs were commissioned during the year taking the total tally to
141 ROs. CNG sales clocked a cumulative sales of 23,000 MT against 2,600 MT sold during
2021-22.
Exploration & Production (E&P)
During the year, the Company's domestic acreage area was significantly
fortified with addition of nine new assets. The Company farmed-in with 30% Participating
Interest (PI) in five OALP blocks awarded to Oil India Ltd. in OALP Bid Rounds - III &
V In addition, The Company in consortium with ONGC emerged as the highest bidder in two
contract areas under the Discovered Small Fields (DSF-III) Bid Round. The Company also
executed a Farm-in Farm-out (FIFO) agreement with Vedanta Ltd. for initiation of the
transfer of 30% stake from Vedanta in two OALP-I exploration blocks located in Assam. With
this, the Company's portfolio now includes 18 domestic & 11 overseas assets, of which
eight assets (one domestic, seven overseas) are producing. Apart from the producing
assets, six assets are under development, four assets have discovery, one asset is under
appraisal and ten assets are under exploration.
The production from the producing assets during the year was steady at
around 4.3 Million Metric Tonne of Oil Equivalent (MMToe). The Company plans to expand its
upstream footprint to target approximately 10% upstream integration ratio by 2030 from its
current ratio of 5.3%.
In the Company's first overseas operated Block Onshore-1, Abu Dhabi,
Exploration drilling campaign of five wells to explore the unconventional Shilaif
resources in the southern part of the Block had commenced and is underway. So far, four
exploratory wells have been successfully completed.
With the commitment to achieve operational Net-Zero by 2046, the
Company is significantly expanding its footprint in the alternate energy space by
investing in Compressed Biogas (CBG), Biofuels, Electric Mobility, and Renewable Energy.
The Company's installed capacity of Renewable Energy as on 31.03.2023 was 238.70 MW, which
includes 1676 MW of wind capacity and 71.10 MW of solar PV capacity The total generation
through the Company's renewable portfolio during the year was 367.82 GWh, which resulted
in emission mitigation of 299.77 thousand metric tonnes of carbon-dioxide equivalent. As
on 31.03.2023, the Company has 20,992 solarised retail outlets with a cumulative solar
power installed capacity of ~ 123.4 MW which generated ~ 159.10 GWh during the year.
With a view to augment its renewable energy portfolio, the Company
executed an MoU with SJVN Limited during the year for formation of a Joint Venture (JV)
for development of Renewable Energy Projects, viz. solar, wind, hydro & hybrid power,
energy storage systems such as battery storage and pumped storage projects for the supply
of round-the-clock (RTC) renewable power to the refineries of IndianOil and as well as to
third parties.
The Company is the lead implementation agency of SATAT (Sustainable
Alternative Towards Affordable Transportation) and has issued Letters of Intent (LOIs) to
3,267 plants for the production and supply of Compressed Biogas (CBG) of about 8.5 MMTPA.
As on 31.03.2023, 22 CBG plants and 46 Retail Outlets have been commissioned in the states
of Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, Telangana, Punjab, Haryana, Karnataka
& Uttar Pradesh. CBG is also being sold to two Industrial Consumers. During the
Financial Year, the Company sold 5822 tonnes of CBG, while the cumulative sales of CBG was
11,086 tons since its inception in September 2019 till March 2023.
During the year, IndianOil set up a 100 TPD CBG plant at Hingonia
Cattle Rehabilitation Centre in Jaipur, Rajasthan as a CSR initiative. It is the largest
cattle dung-based biogas plant in India. The Company is also establishing a 200 TPD
biomass processing CBG plant at Gorakhpur, UP that will generate ~7000 tonnes of CBG
annually by utilising paddy straw as feedstock. Further, the Company signed a Memorandum
of Understanding (MoU) with Tezpur University for the promotion of Compressed Biogas in
Northeast India.
The Hon'ble Prime Minister dedicated to the nation, the Company's 2G
Ethanol Plant at Panipat on 10.08.2022. The Plant is based on state-of-the-art indigenous
technology and poised to turn a new chapter in India's waste-to-wealth endeavours by
utilising two Lakh tonnes of rice straw to generate three Crore litres of Ethanol annually
that will be blended with gasoline. This project is first-of- its-kind in Asia and is a
step towards addressing the vexed problem of stubble burning and associated air pollution.
The produced Ethanol will be blended with petrol to meet the Government of India (GoI)
target of 20% ethanol blending into petrol. Further, IndianOil has set-up a 3G ethanol
plant (of 128 KLPD capacity) using refinery off gases which is first of its kind in the
world.
With global Sustainable Aviation Fuel (SAF) demand expected to pick up
as countries gear up to meet CORSIA (Carbon Offsetting and Reduction Scheme for
International Aviation) mandate, the Company is exploring avenues for producing SAF. The
Company plans to set up 86.8 Thousand Metric Tonnes Per Annum (TMTPA) SAF Plant at Panipat
in collaboration with LanzaJet, which will be ultimately vested and operated through a JV
Company. A JV Company is also proposed with Praj Industries Ltd. for setting up SAF and
other biofuel projects.
Sustainable Development
In alignment with the Net-Zero target of 2070 for India, the Company
has also been taking path breaking initiatives on sustainability. The Company has been
ranked top Indian company (ranked 22nd) in 2022, in Transition Score ranking by
BloombergNEF.
The Company's carbon footprint during 2022-23 was 20.84 MMTCO2e,
while the water footprint was 89.91 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 31.03.2023, the Company has total installed rainwater
harvesting projects with catchment area of over 2908 Hectare.
Net-Zero
During the last AGM in August 2022, the Company announced its Net-Zero
emission target by 2046. This historic declaration aligns with India's Net-Zero commitment
by 2070, announced as part of the Panchamrit goals by the Hon'ble Prime Minister at the
COP-26 Summit.
To achieve its Net-Zero goal, the Company has developed a comprehensive
plan that involves a range of measures aimed at reducing its carbon footprint. The Company
is transforming itself into a vertically integrated and diversified energy major with a
focus on providing secure, affordable energy while minimising its impact on the
environment. To accomplish this objective, the Company has envisaged an investment of over
H 2.4 Lakh Crore by 2046 which will result in emissions mitigation to the tune of 0.7
Billion metric tonnes by 2046. Thus, the Company has meticulously outlined a comprehensive
plan that encompasses various crucial areas, including transparent carbon inventory, the
pursuit of climate goals, bolstering the renewable energy portfolio, investments in low
carbon technology, reducing emissions from its value chain, establishing climate-linked
key performance indicators (KPIs), and fostering transformative leadership.
Through relentless efforts, the Company explored various emission
mitigation pathways like energy conservation measures, shifting from fuel oil, gas oil and
naphtha to natural gas, maximising grid power import, moving towards green hydrogen,
carbon capture utilisation & storage, renewable energy, tree plantation, purchase of
carbon credits amongst others, as key pathways to achieve its Net-Zero goal. This
multi-faceted approach explains IndianOil's gradual progression towards achieving its
Net-Zero aspirations.
The Company, in its pursuit of sustainability, has outlined targets for
renewable energy capacity. By 2030, the Company aims to install 31 GW of renewable energy
capacity and increase it to 200 GW by 2050. The Company is diligently working towards
attaining 1 MMT biogas production target by 2030 and 9 MMT biogas portfolio by 2050 and
CBG will play a major role in achieving Net-Zero operational emission of IndianOil by
2046.
In order to ensure successful implementation of its Net-Zero strategy,
the Company has identified short-term, medium-term, and long-term targets. Collaborative
partnerships have been formed with key stakeholders for the development of renewable
energy projects and the Company is planning to build 2.2 GW renewable energy capacity
through a Joint venture with NTPC Green Energy Ltd. (Wholly Owned Subsidiary of NTPC) and
15 GW RE capacity through proposed joint venture with SJVN Ltd. by 2030. The Company has
ventured into green hydrogen through an Memorandum of understanding (MOU) with Re-New and
L&T, aiming to explore innovative solutions.
Overseas Business
In pursuit of diversification and globalisation, the Company has been
keeping a close watch on the developments in the geographies of its interest to explore
business opportunities and enhance global footprints.
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. During the year, Company's first International retail outlet
was commissioned in Kathmandu, Nepal in September 2022. The Company plans to expand its
footprints in the lubricants segment in Nepal and in January 2023, IOML (Indian Oil
Mauritius Limited)-a subsidiary of IndianOil and HH &Co (Hansraj Hulaschand & Co),
Nepal executed a Joint Venture Agreement for setting up a state-of-the-art Lube blending
plant in Nepal.
The Company has been consistently working to build synergies and tap
opportunities in Bangladesh and has formed a Joint Venture Company named 'Beximco IOC
petroleum & Energy Ltd' (BIPEL) focusing on LPG business in Bangladesh. During the
year a Sale Purchase Agreement (SPA) with Bangladesh Petroleum Corporation for supply of
finished petroleum products on G2G basis was executed. The Company also finalised a
first-of-its-kind, spot export deal of 2.5 TMT of Naphtha from Guwahati Refinery on FOB
Haldia basis to Aqua Refinery, Bangladesh using the Indo- Bangla Protocol River route,
which has brought about significant logistical efficiency given that waterway movements
are amongst the cheapest and low carbon transportation modes. Further, during the year,
the Company and Road & Highways Division, Govt. of Bangladesh signed an Memorandum of
understanding (MOU) for transit movement of IndianOil's POL and LPG trucks for supplies to
Tripura, Mizoram, and south Assam using Bangladesh as transit. Through this strategic
initiative import of LPG at Agartala (Tripura) bottling plant via road from Bangladesh has
begun, which has helped reduce the distance traversed for importing LPG at Agartala from
1700 km of difficult terrain to just 200 km.
During the year, the Company expanded its footprint to new geographies
with export of the first parcel of 16 KL of 'Avgas 100 LL' for shipment to Papua New
Guinea. Aviation Gasoline grade AVGAS 100 LL has been designed in-house for use in
turbo-charged reciprocating piston engine aircraft, mainly used by FTOs (Flying Training
Organisation) and defence forces for training pilots.
Explosives
The Company's Explosives group has been actively pursuing business
opportunities in the Industrial Explosives business in India.
During the year, sales of Explosives hit a record high of 341.6 KT,
clocking a growth of 19% over the previous year's volume. The Company's first bulk
explosives plant of 30 KTA Capacity in western India was commissioned in Western
Coalfields Ltd (WCL) at Umrer, near Nagpur, and has achieved 100% rated capacity. Another
Bulk explosive plant at Basundhara (Odisha) has been constructed and commissioned in May
2023.
IndianOil would be setting up a 30 KTA Bulk Explosives Plant at the
Singareni Collieries Company Ltd. (SCCL) premises at Mandamarri (Telangana). A long-term
Contract has been executed with Neyveli Lignite Corporation India Ltd. (NLCIL), Neyveli,
Tamil Nadu for pursuing a greenfield project. With this, the Company will be able to
expand its footprint for the first time in the bulk explosives business in southern India.
Diversification
Overseas Direct Investment (ODI) guidelines issued by RBI and MoF in
August 2022, allows non finance companies to form Finance Company in GIFT city. IndianOil
became the first commercial, non-finance Company of India to incorporate a Finance Company
named 'IOC Global Capital Management IFSC Limited' in GIFT City, Gandhinagar on May 17,
2023 as a wholly owned subsidiary company.
This Finance Company will enable IndianOil to carry out global treasury
operations, raise capital and debt from overseas market and take advantage of interest
arbitrage and at the same time, fund Crude oil purchases using trade financing model,
thereby reducing the debt burden on the Company. The Finance Company will also provide a
platform to carry out activities of fund management for inbound and outbound investments
of IndianOil, Lease in and lease out activities, gateway for insurance/reinsurance
requirement of IndianOil, ship leasing, chartering and acquisition activities and other
opportunities unveiled in GIFT city in the years to come.
International Trade
Your Company imported 6750 MMT of crude oil during the year Financial
Year 2022-23, as against 5780 MMT in the previous year to meet the crude requirement for
processing at its refineries. The selection of crude oil is undertaken from a diversified
mix of supply sources to optimise the cost as well as to improve flexibility. The import
of petroleum products during the Financial Year was 10.122 MMT as against 9.324 MMT in the
previous year.
Projects
IndianOil spent a total of H 37,287 Crore during the year, which
includes H36,469 Crore on projects and H818 Crore towards investment in joint ventures and
subsidiaries. IndianOil single- handedly contributes to more than 25% of the total CAPEX
incurred by PSUs under the Ministry of Petroleum & Natural Gas. The Company is
currently spearheading the management of 120 projects of varying magnitudes, with a
cumulative capital cost of approximately H2.4 Lakh Crore, aimed at consolidating and
enhancing its leadership position in the market.
IndianOil spent a total of H 37,287 Crore during the year, which
includes J 36,469 Crore on projects and H 818 Crore towards investment in joint
ventures and subsidiaries
During 2022-23, IndianOil made significant investments in its refining
infrastructure, undertaking various projects to expand refining capacity and improvement
projects in its refineries. These included expanding the capacity of Barauni Refinery from
6.0 to 9.0 MMTPA, increasing the capacity of Panipat Refinery from 15 to 25 MMTPA,
implementing the petrochemical and lube Integration project at Gujarat Refinery,
constructing the grassroot Para Xylene and Purified Terephthalic Acid Plant at Paradip
Refinery, and establishing an acrylics/oxo alcohol project at the Gujarat Refinery, among
other initiatives.
In addition to focusing on refining, IndianOil is also investing in the
development of a technology centre at its second R&D Campus in Faridabad. This
technology centre will serve as a centre of excellence for research related to alternate
energy and will play a significant role in achieving IndianOil's long-term sustainability
goals.
Furthermore, your Company is committed to enhancing its pipeline
infrastructure and has undertaken several key projects in this area. These projects
include the construction of the new Mundra Panipat Crude Oil Pipeline, the Ennore -
Thiruvallur - Bengaluru - Puducherry
- Nagapattinam - Madurai - Tuticorin Natural Gas Pipeline, the Koyali
- Ahmednagar - Solapur Pipeline, and the replacement of existing twin
42" offshore pipelines at Vadinar. IndianOil is also involved in various joint
venture pipeline projects, such as the North East Gas Grid Project, Kandla Gorakhpur LPG
Pipeline, and the Mehsana - Bhatinda & Bhatinda - Gurdaspur natural gas pipeline.
Apart from focusing on its core business, IndianOil is also actively
focused on adopting greener technologies, which includes incorporating green hydrogen
usage in its refineries, substituting naphtha with gas, and exploring alternative fuels.
These initiatives are aimed at reducing emissions, minimising environmental impact, and
supporting the transition to a more sustainable and environmentally friendly energy
landscape.
Health, Safety & Environment (HS&E)
The Company believes that good Health, Safety & Environment
(HS&E) performance is an integral part of efficient and profitable business management
and therefore is committed to conducting its business with a strong environmental
conscience, ensuring sustainable development, safe workplaces, and enrichment of the
quality of life of its employees, customers, and the community. All refineries of the
Company are certified to ISO:14064 standards for sustainable development as well as for
the Occupational Health & Safety Management System (ISO:45001), besides having fully
equipped occupational health centres.
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 Health and
Safety at Work - A key factor in economic success' - modalities for medical examination of
contract workers, uniform implementation of the WHO Healthy Workplace model in IndianOil
locations, creation of TB-Free workplaces at IndianOil, updation of OHS Portal and
emergency planning in case of chemical exposures 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, simulator-based training, HAZOP and risk analysis,
issuance of various guidelines & SOPs, etc.
Human Resources
The total strength of employees as on March 31, 2023 was 31095, of
which 2726 were women employees. The total strength includes 18485 executives and 12610
non-executives. During the year, the Company recruited 1075 executives. To further the
cause of apprenticeship training in the country, the Company engaged 3693 apprentices
under various categories like Trade,Technician, Fresher, skill-certificate holder, which
constitutes 11.87% of the total workforce. The apprentices were imparted practical inputs
with a structured monitoring and assessment methodology.
The Company scrupulously follows the Presidential Directives and
guidelines issued by the Government of India regarding the reservation in services for
SC/ST/OBC/PwBD (Persons with Benchmark Disabilities)/ex-servicemen/Economically Weaker
Sections (EWSs) to promote inclusive growth. Rosters are maintained as per the directives
and are regularly inspected by the Liaison Officer(s) of the Company 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 and efforts are made to promptly dispose of the
representations/ grievances received. In accordance with the Presidential Directive, the
details of representation of SC/ST/OBC in the prescribed format are attached as Annexure
- I to this Report.
A new integrated portal 'e-Sambandh' has been launched which
will be the single touch point for all the needs of retiring as well as retired employees,
catering to all superannuation formalities, PRMBF needs, SABF pension and Ex-gratia
related information etc - all at one place
The provision of 4% reservation for persons with disabilities, in line
with the Government of India's guidelines/instructions were implemented by the Company.
Necessary concessions/relaxations in accordance with the rules in this regard were
extended to physically challenged persons in recruitment.
During the year, cordial industrial relations were maintained across
the Company's installations. The Company provides 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. The Company supports participative
culture in the management of the enterprise and has adopted a consultative approach with
collectives, establishing a harmonious relationship for industrial peace, thereby leading
to higher productivity.
A new integrated portal 'e-Sambandh' has been launched which will be
the single touch point for all the needs of retiring as well as retired employees,
catering to all superannuation formalities, PRMBF needs, SABF pension and ex-gratia
related information etc - all at one place. 'Paramrash' - an employee assistance programme
was started in December 2022, extending the ambit of mental wellness to cover family
members of employees as well. More than 6000 employees and their family members attended
the mental wellness and sensitisation workshops during 2022-23.
In a historic first, IndianOil signed a Statement of Intent (SOI) with
Capacity Building Commission (CBC), Government of India for knowledge partnership, support
for implementation of Framework of roles, activities, and competencies and for conducting
capacity building workshops for government officials and other stakeholders.
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 use Hindi as Official Language 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. The Parliamentary Committee on Official Language during their
inspections of various offices/locations/ units of the Company, commended its efforts in
implementation of Official Language across the country.
Corporate Social Responsibility
IndianOil believes that CSR is the continuing commitment to conduct its
business activities ethically and contribute to the economic development while improving
the quality of lives of the local communities, especially in the vicinity of its
establishments. IndianOil's Corporate Social Responsibility (CSR) thrust areas include
'Safe drinking water,' 'Healthcare and sanitation,' 'Education and employment-enhancing
vocational skills,' 'Rural development', 'Environment sustainability', 'Empowerment of
women and socially/ economically backward groups,' etc.
During the year, as against the CSR budget of T 25755 Crore (2% of the
average profit of the previous three years T 351.07 Crore minus excess spent in previous
year T 93.52 Crore), the Company spent a higher sum of T 264.03 Crore to ensure continuity
in the planned CSR activities including many flagship projects resulting in carry over of
T 6.48 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.
Right to Information Act (RTI)
An elaborate mechanism is in place across the Company to deal with the
matters relating to The Right to Information Act 2005. To meet the requirement of the Act
and to ensure compliances of its various provisions, your Company has 01 designated Nodal
Officer, 30 First Appellate Authorities (FAAs), 40 Central Public Information Officers
(CPIOs) and 40 Assistant Public Information Officers (APIOs) across all Divisions.
Under the proactive disclosure of the information as per section
4(1)(b), information has been made available on your Company's official website -
www.iocl.com and is regularly updated as well. Your Company has aligned with the On-line
RTI portal of Department of Personnel and Training and, as such, all the
applications/appeals received through the portal, are disposed off through electronic mode
only.
5,312 requests and 601 first appeals were disposed off within the
prescribed timeline, during 2022-23. 202 second appeals were disposed off, by the Central
Information Commission, New Delhi without having any observation of penalty
imposition/disciplinary action.
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
Company with clear objective of providing protection to women against sexual harassment at
the workplace and for the prevention and redressal of complaints of sexual harassment.
Internal Committees have been set up at every Unit/Region/Head Office level, headed by
senior-level women employee to deal with sexual harassment complaints, if any.
Six complaints of sexual harassment were pending as on April 01, 2022.
During 2022-23, eight complaints were received, and nine complaints were disposed off. As
on March 31, 2023, five complaints were pending.
Regular workshops are held, especially for women employees, to raise
awareness about their rights and facilities at workplace and emphasising the provisions of
the Act. Gender sensitisation programmes for the male employees are also conducted
regularly. Newly recruited employees in the Company are made aware of the provisions of
the Act and the measures adopted by the Company to prevent such incidents. During the
year, 43 workshops/awareness programmes were conducted, and 1222 employees participated in
the Workshops/Awareness Programmes.
Vigilance
The vigilance function operates with the objective of ensuring
maintenance of the highest level of integrity throughout the Company. The Vigilance
department not only acts as a link between the Company and the Central Vigilance
Commission but also advises the organisations in all matters pertaining to vigilance. The
Vigilance department takes preventive, punitive and participative measures with emphasis
on the preventive and participative aspects, and also helps in establishing effective
internal control systems and procedures for minimising systemic failures. During the year,
138 Vigilance Awareness programs were conducted, which were attended by over 7000
employees.
Disciplinary action under applicable conduct, Discipline and Appeal
Rules 1980 and Certified Standing Orders are taken by the Company for
irregularities/lapses. During the year 75 Disciplinary matters related to Vigilance cases
were disposed off and 34 cases were pending at the end of the year. The cases pertain to
irregularities such as indiscipline, dishonesty, negligence in performance of duty or
neglect of work etc. The Company continuously and regularly endeavors to ensure fair and
transparent transactions through technology interventions and system/process reviews in
consultation with the Central Vigilance Commission and internal Vigilance set up.
Public Deposit Scheme
The Public Deposit Scheme of the Company was closed with effect from
August 31, 2009. The Company has not invited any deposits from the public during the year
and no deposits are outstanding as on March 31, 2023, except the old cases amounting to T
55,000, which remain unpaid due to unsettled legal/court cases.
Corporate Governance
Your Company always endeavours to adhere to the highest standards of
corporate governance, which are within the control of the Company. A comprehensive Report
on Corporate Governance inter-alia highlighting the efforts of the Company in ensuring
transparency, integrity and accountability in its functioning has been incorporated as a
separate section, forming a part of the Annual Report. The certificate issued by the
Practicing Company Secretary on Compliance with Corporate Governance guidelines is annexed
to the Report on Corporate Governance.
Management's Discussion & Analysis Report
The Management's Discussion and Analysis (MDA) Report, as required
under Corporate Governance guidelines, has also been provided as a separate section
forming a part of the Annual Report.
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. The BRSR is hosted on the website of the Company on the link
https://www.iocl.com/business-responsibility-report.
Audit Committee
The Audit Committee of the Board comprised of three members as on March
31, 2023; with all Independent Directors. 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 year 2022-23.
Risk Management
Risk management plays a vital role in the Company, serving as a
fundamental pillar of its strategic decision-making process. Your Company's robust risk
management framework not only minimises potential disruptions and financial losses but
also fosters a resilient and agile organisational ecosystem that thrives in the face of
uncertainty. With risk management as a core component of the governance structure, the
Company demonstrates an unwavering commitment to prudent and responsible business
practices, driving sustainable growth and long-term value creation. The Enterprise Risk
Management (ERM) framework in the Company encompasses practices relating to risk
identification, assessment and categorisation, analysis, mitigation and monitoring of the
strategic, operational, legal and compliance risks which are managed through its
internally designed ERM portal as effective risk management serves as the compass guiding
the Company towards sustainable success, ensuring proactive identification, assessment,
and mitigation of potential threats while unlocking new possibilities for growth and
innovation.
The Company has constituted a Risk Management Committee (RMC), a
sub-committee of the Board, to oversee risk management activities. In addition, a Risk
Management Compliance Board (RMCB) comprising of senior management personnel and headed by
the Chief Risk Officer has also been formed which periodically reviews the various risks
associated with the Company's business. Moreover, significant findings at the unit level
are also put up for discussion during the RMCB meeting. 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. Two Meetings of the Risk Management Committee were held
during the year.
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 an
Executive Director, 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 SubSection 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 the 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 202223. 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 2022-23.
The Auditors' remuneration for the year was fixed at T 2.60 Crore, T
1.50 Crore and T 0.50 Crore for Statutory Audit, Limited review, and Tax Audit
respectively along with applicable taxes and reasonable out of pocket expenses. In
addition, fees were 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 2022-23 was T 5.39 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, 2023, were
submitted to the C&AG for supplementary audit. The C&AG has conducted
supplementary audit and issued NIL comments. The NIL comment certificate is attached in
this Annual Report after the Financial Statements. This is the 17th 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,
2023, there are twenty-one 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 , utilisation of spectrum, procurement from MSME, Infructuous expenditure due
to participation in a low hydrocarbon and risky E&P block, supply logistics 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, Conveyance Running and maintenance expenses. The replies
to these paragraphs 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
2022-23. A remuneration of ? 22.70 Lakh and applicable taxes was fixed by the Board for
payment to the cost auditors for 2022-23, 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 2022-23. 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 atleast one-Woman Independent Director for
the period 06.11.2022 to 31.03.2023.
- the requirement of having at least half of the Board of Directors as
Independent Director for the period 01.04.2022 to 03.10.2022 and 06.11.2022 to 31.03.2023.
- performance evaluation of Independent Directors by the entire Board
of Directors and review of performance of NonIndependent 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 Director and Women
Director) 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 05, 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, 2023, 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
& natural gas, API line pipes, proprietary items and single line items of value
greater than H 50 Crore) during 2022-23 was as under:
| PARAMETERS |
TARGETS |
ACTUAL |
| Total procurement from MSEs (General, SC/ST & Women) |
25% |
29.21% |
| Procurement from SC/ST MSEs |
4% (Sub-target out of 25%) |
0.86% |
| Procurement from Women owned MSEs |
3% (Sub-target out of 25%) |
0.35% |
The deficit of 3.14% and 2.65% 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 to identify the entrepreneurs for
procurement of goods and services from MSEs owned by SC/ST and women enterprises,
including total 93 nos. of vendor development programmes.
Subsidiaries, Joint Ventures & Associates
During 2022-23, the Company acquired 25% equity stake in Cauvery Basin
Refinery and Petrochemicals Limited, a company established for Setting up of a 9 MMTPA
refinery project at Nagapattinam, Tamil Nadu. The Company has also incorporated a wholly
owned subsidiary company in GIFT City Gujarat named IOC Global Capital Management IFSC
Limited in May 2023.
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 Policy.pdf
Related Party Transactions (RPTs)
In line with the provisions of the Companies Act, 2013 & SEBI
(LODR) as amended from time to time, a policy on material RPTs has been framed, which can
be accessed at: https://www.iocl.com/download/RPT Policy.pdf.
During the year, the Company had entered into transactions with related
parties, which could be considered material in accordance with the policy of the Company
on materiality of related party transactions. The Company has obtained the approval of
Audit Committee as well as Shareholders for such material RPTs as per the provisions of
the SEBI (LODR).
Further, all such RPTs were on arm's length basis and in the ordinary
course of business and approved by the Audit Committee. Therefore, 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.
The disclosures related to RPTs in accordance with applicable
accounting standards are provided at Note-37 of the Standalone Financial Statement.
Energy Conservation, Technology Absorption and Foreign Exchange
Earnings and Outgo
Energy conservation is accorded utmost importance across 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 S. K. Gupta, Director (Finance) ceased to be a Director w.e.f.
October 03, 2022 consequent upon his appointment as Chairman & Managing Director of
GAIL (India) Ltd.
2. Shri Sanjay Kaushal was appointed as Chief Financial Officer w.e.f.
October 03, 2022.
3. Ms. Lata Usendi ceased to be an Independent Director w.e.f. November
06, 2022 consequent upon her completion of tenure.
4. Shri Sunil Kumar was appointed as a Government Nominee Director
w.e.f. December 28, 2022.
5. Dr. Navneet Mohan Kothari, Government Nominee Director ceased to be
a Director w.e.f. March 25, 2023 consequent upon his completion of tenure.
6. Shri Ranjan Kumar Mohapatra, Director (Human Resources) ceased to be
a Director w.e.f. May 03, 2023 consequent upon completion of his tenure.
7 Shri D. S. Nanaware, Director (Pipelines) ceased to be a Director
w.e.f. July 01, 2023 consequent upon completion of his tenure.
Shri Satish Kumar Vaduguri, Director (Marketing) is liable to retire by
rotation and being eligible is proposed to be re- appointed at the forthcoming Annual
General Meeting (AGM). His 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 possess the desired expertise, experience and integrity.
A separate meeting of Independent Directors was held during the year as
per the provisions of the Companies Act, 2013, and SEBI (LODR).
Board Meetings
During the year, 12 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
the 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/InvestorCenter/pdf/Whistle Blower policy.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 the notified thereunder. The details of
such investments made, and loans/guarantees provided as on March 31, 2023 are provided in
Notes No.4, 36, 37 and 42 of the Standalone Financial Statement.
Annual Return
As required under the provisions of the Companies Act, 2013, the draft
Annual Return for the year 2022-23 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. As required
under SEBI guidelines, the Audit Committee had a meeting with Credit Rating Agencies in
March 2023.
Investor Education & Protection Fund (IEPF)
The details of unpaid/unclaimed dividends and shares transferred to the
IEPF in compliance with the provisions of the Companies Act, 2013, have 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.
Details of application made or any proceeding pending under the
Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status
as at the end of the Financial Year
No applications were made during the year and no proceedings are
pending against the Company under the Insolvency and Bankruptcy Code 2016 (31 of 2016).
Details of the difference between the amount of the valuation done at
the time of one-time settlement and the valuation done while taking a loan from the banks
or financial institutions along with the reasons thereof
There were no instances of one-time settlements during the year
2022-23.
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 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 took 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 prepared the annual accounts on a going concern
basis; and
(e) the Directors 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 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 would like to express its appreciation for the sincere,
dedicated and untiring efforts of the employees of the Company, contract labours, and
employees of business channel partners to ensure the supply of petroleum products across
the country and achieving excellent performance 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 S. K. Gupta, Ms. Lata Usendi, Dr.
Navneet Kothari, Shri Ranjan Kumar Mohapatra and Shri D.S. Nanaware 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 27, 2023 |
DIN:06995642 |
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