1.15.0 Provisions including Decommissioning
and restoration obligations
1.15.1 Provisions
Provisions are recognized when the Company has a
present obligation as a result of a past event and it is
probable that the Company will be required to settle the
obligation and a reliable estimate can be made of the
amount of the obligation.
The amount recognized as a provision is the best estimate
of the consideration required to settle the present
obligation at the end of the reporting period, taking into
account all the relevant facts, the risks and uncertainties
surrounding the obligation. Provision is measured using
the present value of cash flows estimated to settle the
present obligation as on the reporting date.
Provisions towards cost of unfinished minimum work
program (MWP) committed by the Company for all
joint venture blocks are made when there is a present
obligation on the basis of available facts as at the end of
the reporting period.
1.15.2 Decommissioning and restoration obligations
Liabilities towards costs relating to assets retirement
obligations are recognized when the Company has an
obligation to plug and abandon a well, dismantle and
remove a facility or an item of plant and to restore the
site on which it is located, and when a reliable estimate
of that liability can be made. Liabilities towards costs
relating to dismantling, abandoning and restoring well
sites, associated production facilities and plants are
recognized at the commencement of drilling a well or
when facilities and plants are installed, as the case may
be. The amount recognized is the present value of the
estimated future expenditure determined considering
the depth and the type of wells (testing well, exploratory
well, developed well etc.), facilities and plants installed
in accordance with local conditions and requirements at
current prices and escalated using appropriate inflation
rate till the expected date of decommissioning and
discounted using appropriate risk-free discount rate.
An amount equivalent to the decommissioning liability
provision is recognized as part of the corresponding
PPE, CWIP or Exploration & Evaluation Asset (E&E) as
the case may be. The decommissioning cost in respect
of dry exploratory well is expensed off in the Statement
of Profit and Loss as exploratory well cost.
Provision for decommissioning cost in respect of assets
under joint operations is considered as per participating
interest of the Company on the basis of estimates
prepared by the operator.
Liability for decommissioning cost is updated annually
at current cost based on latest available technical
assessment. The unwinding of the discount is included
as a finance cost. Any change in the present value of
the estimated decommissioning provision other than
unwinding of discount is adjusted to decommissioning
provision and added to or deducted from the cost of
the asset in the current period and is considered for
depreciation (depletion) prospectively. In case, where
the reversal of decommissioning provision exceeds the
corresponding carrying value of the related assets, the
excess amount is recognized in the Statement of Profit
and Loss.
The Company considers the impact of health, safety
and environmental legislation in estimating the
decommissioning liability.
The actual cost incurred on settlement of the obligation
is adjusted against the liability and the ultimate gain or
loss is recognized in the Statement of Profit and Loss,
when the designated oil / gas field or a group of oil/gas
fields cease to produce.
1.16.0 Investments in subsidiaries, associates
and joint ventures
The Company measures its investments in subsidiaries,
associates and joint ventures at cost and the same
are tested for impairment in case of any indication of
impairment.
1.17.0 Financial instruments
1.17.1 Financial assets
1.17.1.1 Initial Recognition and Measurement
All regular purchases or sales of financial assets that
require delivery of assets within a timeframe established
by regulation or convention in the marketplace are
recognized on a trade date basis which is the date on
which the Company commits to purchase or sell the
asset or investment date as the case may be.
The Company measures a financial asset at its fair value
plus, in the case of a financial asset not subsequently
measured at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition of
the financial asset except for trade receivables which are
initially measured at transaction price. Transaction costs
of financial assets carried at fair value through profit or
loss are expensed off in the Statement of Profit and Loss.
1.17.1.2 Classification of financial assets
The Company determines the classification of its financial
assets based on its business model for managing the
financial assets and the contractual terms of the cash
flows. The Company's financial assets are classified into
the following categories:-
a. those to be measured at fair value (either through
other comprehensive income or through profit
or loss). These includes equity securities at fair
value through other comprehensive income
(FVTOCI) and investment in mutual fund and leave
encashment fund at fair value through profit or
loss (FVTPL).
b. those to be measured at amortized cost. These
comprise debt securities at amortized cost, trade
receivables, loan receivables, cash and bank
balances, other financial assets and receivables.
On initial recognition, the Company has made an
irrevocable election to present the subsequent changes
in fair value through other comprehensive income for
equity instruments (other than in subsidiaries, joint
ventures and associates) that are not held for trading.
1.17.1.3 Subsequent Measurement
A gain or loss in debt securities that is subsequently
measured at amortized cost is recognized as a component
of other income/expense when the asset is derecognized
or impaired. Interest income from these financial assets
is included in other income using the effective interest
method.
Gain and losses on financial assets measured at fair
value are recorded either through profit or loss or
other comprehensive income. Upon derecognition, the
cumulative fair value changes recognised in OCI is not
reclassified from the equity to profit or loss.
1.17.1.4 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and
in hand, including offsetting bank overdrafts, and short¬
term highly liquid investments that are readily convertible
to known amounts of cash, have a maturity of three
months or less from the acquisition date.
1.17.1.5 Trade receivables
Trade receivables are recognized initially at their
transaction price unless those contain a significant
financing component in accordance with Ind AS 115.
1.17.1.6 Impairment of financial assets
The Company measures the loss allowance for all financial
instruments (Investments, loans, cash calls receivable
from JV partners, receivable against insurance claim
and leave encashment and other financial assets) at an
amount equal to the lifetime expected credit losses if
the credit risk on that financial instrument has increased
significantly since its initial recognition. If the credit risk
on a financial instrument has not increased significantly
since its initial recognition, the Company measures the
loss allowance for that financial instrument at an amount
equal to 12-month expected credit losses.
However, for trade receivables that result in relation to
revenue from contracts with customers, the Company
measures the loss allowance at an amount equal to
lifetime expected credit losses.
1.17.1.7 De-recognition of financial assets
The Company de-recognizes a financial asset when the
contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially
all the risks and rewards of ownership of the asset to
another party.
On de-recognition of a financial asset in its entirety, the
difference between the asset's carrying amount and the
sum of the consideration received and receivable and the
cumulative gain or loss that had been recognized in other
comprehensive income and accumulated in equity is
recognized in profit or loss if such gain or loss would have
otherwise been recognized in profit or loss on disposal of
that financial asset.
1.17.2.1 Equity instruments
An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the
Company are recognized at the proceeds received, net of
direct issue costs.
1.17.2.2 Financial liabilities
The Company initially recognizes a financial liability at
fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company's financial liabilities which are not held
for trading are subsequently measured at amortized
cost using the effective interest method which mainly
include loans and borrowings, lease liabilities, financial
guarantee contracts and other financial liabilities.
However, financial guarantee contracts issued by the
Company to provide a loan at below-market interest rate
are measured in accordance with the specific accounting
policies set out below.
Interest expense that is not capitalized as part of costs of
an asset is included in the 'finance costs' line item.
Gain or loss on financial liabilities are measured at
amortized cost are recorded in profit or loss.
1.17.3 Financial guarantee contracts
Financial guarantee given by the Company are initially
measured at their fair values, adjusted for transaction
costs that are directly attributable to the issuance of the
guarantees and are subsequently measured at the higher
of loss allowance determined in accordance with Ind AS
109 and the amount initially recognised less cumulative
amount of finance income recognised.
The Company measures finance income by amortizing
the initial fair value of guarantee on a straight-line basis
over the guarantee period.
Fair value of financial Guarantee contract issued by
the Company for subsidiaries, associates and joint
ventures are initially recognised as deemed investment
with a corresponding liability recorded under financial
guarantee obligation. Such deemed investment is added
to the carrying amount of investment in such subsidiaries,
associates and joint ventures as applicable.
On disposal of investment by the Company in subsidiary,
associates and joint venture, the difference between net
disposal proceeds and the carrying amounts (including
corresponding value of deemed investment) are
recognised in the statement of profit and loss.
The Company derecognises financial liabilities when, and
only when, the Company's obligations are discharged,
cancelled or they expire. The difference between the
carrying amount of the financial liability de-recognised
and the consideration paid and payable is recognised in
profit or loss.
1.18.0 Interest in joint operations
The Company has joint operations in the nature of
Production Sharing Contracts (PSCs) and Revenue
Sharing Contracts (RSCs) executed with the Government
of India / Government of Foreign Countries by the
Company along with other entities to undertake
exploration, development and production of Oil and/
or Gas activities in various concessions/block/area are
accounted as under:
a) The Financial Statements reflect the share of
the Company's assets, liabilities, income and
expenditure of the Joint Operations in proportion to
the participating interest of the Company as per the
terms of the PSCs and RSCs, on a line-by-line basis.
b) The revenue on account of petroleum produced
and sold from the exploitation of such reserves and
after recovery of cost or royalty, as per the relevant
contract, a part of the revenue is paid to Government
of India on a predetermined basis. It is reduced from
the revenue from sale of products as Government of
India's Share.
c) Proved Developed Reserve of Oil and Gas in such
concessions/block/area is also considered in
proportion to participating interest of the Company.
d) Consideration recoverable from new Joint Venture
Partners for the right to participate in operations
is reduced from respective value of assets and/
or expenditure to the extent of the new partner's
contribution towards past cost and balance is
considered as miscellaneous receipts/expenses.
e) Gain or loss on sale on interest in block, is recognized
in the Statement of Profit and Loss, except that
no gain is recognized at the time of such sale if
substantial uncertainty exists about the recovery
of the costs applicable to the retained interest or if
the Company has substantial obligation for future
performance. The gain in such situation is treated
as recovery of cost related to that block.
1.19.0 Segment Reporting
Considering the nature and associated risks and return
of products and services, the Company has adopted its
products and services (viz. Crude Oil, Natural Gas, LPG,
Pipeline Transportation Renewable Energy and Others) as
the primary reporting segments. There are no reportable
geographical segments.
Segment assets, liabilities, income and expenses have
been either directly identified or allocated to the segments
on the similar basis as used for allocation of cost for the
purpose of preparing the Financial Statements of the
Company.
See Note 45 for the detailed disclosure related to
segments.
1.20.0 Earnings per share
Basic earnings per share are calculated by dividing the
net profit after tax for the year attributable to equity
shareholders of the Company by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share,
the net profit after tax for the year attributable to equity
shareholders of the Company and the weighted average
number of shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares.
1.21.0 Dividend
The final dividend on shares is recorded as a liability on the
date of approval by shareholders, and interim dividends
are recorded as a liability on the date of declaration by the
Company's board of directors.
1.22.0 Contingent Liabilities and Contingent
Assets
Contingent liabilities are possible obligations that arise
from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one
or more future events not wholly within the control of the
Company. A provision is recognised in respect of present
obligations where the outflow of resources is probable
and all other cases are disclosed as contingent liabilities
unless the possibility of outflow of resources is remote.
Contingent liabilities relating to direct taxes, indirect
taxes, guarantees, legal cases and others, whether
disputed or not, are disclosed on the basis of judgment
of the management/ independent experts and reviewed
at each Balance Sheet date to reflect the current
management estimate.
2.1 The Company has adopted to continue with the carrying value of its Property, Plant & Equipment (PPE) - Tangible
Assets, recognised as on 1st April, 2015 (transition date) measured as per the Previous GAAP and used that carrying
value as its deemed cost as on the transition date.
2.2 Addition to Oil & Gas assets during current year includes upward revision of capitalised portion of cost of
decommissioning liability net of change in estimates and additions of new wells & facilities amounting to '191.79
crore (Downward revision during previous year '69.33 crore).
2.3 Plant & Equipment includes carrying value of '0.54 crore (previous year '0.40 crore) related to asset retired from
active use.
2.4 During the financial year 2023-24, the Company reversed an impairment loss of '43.17 crore, net of depletion in
the Statement of Profit & Loss under the head "Other Expenses" relating to Oil & Gas Assets in Rajasthan.
2.5 Lands for projects and drillings operations are acquired primarily through bipartite negotiation with the occupiers/
pattadars. In case, however, bipartite negotiation fails, land is acquired under relevant land laws with Government
intervention. Upon successful negotiation or government order, as the case may be, consent letters are obtained
from the occupiers/pattadars and surface compensation for the standing crops on the lands are settled and
the same are capitalized either as Free hold Land or as Acquisition Cost of Oil & Gas assets. At the same time
occupiers/pattadars are advised to submit documentary evidences in support of their legal possession of the
lands. Pending submission of these documents and upon settlement of surface compensation, liability for land
value is determined and capitalised under respective heads. Land cost forming part of Oil & Gas Assets is either
amortized or charged off depending on discovery in the well.
The total land in the possession of the Company is segregated as appended below:
6.6 Numaligarh Refinery Limited offered 28,77,27,273 number of equity shares on right basis for '110 per share
(including '100 as premium) to the existing shareholders. The Company subscribed 20,03,44,555 equity shares
offered on right basis and paid '1,652.85 crore towards 75% (previous year '1,101.90 crore towards 50%) of the
Issue Price per Rights Equity Share as call money in accordance with the terms of issue. The partly paid up shares
have been allotted to the Company on 9th of May,2023.
6.7 The Company has been alloted 16,242 nos of equity share of the face value of EURO 11.1945 per share fully paid up
by Oil India Sweden AB, the wholly owned subsidiary of the Company, during the year ended 31st March, 2025.
6.8 Oil India International BV, Netherlands, the wholly owned subsidiary of OIL has 50% stake in a JV company WorldAce
Investments Limited, Cyprus which in turn owns 100% of the voting equity in Stimul-T LLC, a Russian registered legal
entity, which owns block Licence 61 in the Tomsk region of the Russian Federation. Stimul-T LLC filed application
for bankruptcy in the Arbitration Court of Tomsk, Russia on 10th May, 2023. The application for Bankruptcy has
been accepted by the Arbitration Court and in its ruling dated 8th November, 2023 appointed a Temporary Manager
(Bankruptcy Trustee) and initiated the supervision stage of Bankruptcy which is currently in progress.
6.9 A wholly owned subsidiary in the name of "OIL Green Energy Limited" was incorporated on 31st January 2025. The
company has been formed for energy generation through non-conventional/ renewable sources. The registered
office of the company is in Delhi. The company during the year has allotted 50,00,000 number of equity shares of
the face value of '10 per share fully paid up to Oil India Limited.
6.10 The Company is holding 22,708 nos (19,116 nos as on 31st March, 2024) fully paid 10% Cummulative Redeemable
preference share of No par value in Beas Rovuma Energy Mozambique Ltd as on 31st March, 2025.
5120 ordinary equity shares and 19,116 preference shares of the Company in Beas Rovuma Energy Mozambique
Limited (BREML) have been provided under custody of Area 1 shared security custodian (Standard Bank, S.A.)
under project finance arrangement entered into by BREML.
6.11 The Company has been alloted 8200000 nos of equity share of the face value of '10 per share fully paid up by
Indradhanush Gas Grid Limited, the Joint Venture of the Company, during the year ended 31st March, 2025 as right
shares.
6.12 The Company has been alloted 19600000 nos of equity share of the face value of '10 per share fully paid up
by North East Gas Distribution Company Limited, the Joint Venture of the Company, during the year ended
31st March, 2025 as right shares.
9.2 A Joint Venture Company (JVC) in the name of "APGCL OIL Green Power Limited" was incorporated on 21st February
2025, with equity participation of 49% from the Company and 51% from Assam Power Generation Corporation Limited.
The company has been formed to plan, develop, construct, own and operate renewable/green energy projects. The
initial capital contribution of '4.90 lac has been disclosed as Advance Against Equity against which 49,000 Equity
shares were issued to the Company on 17.04.2025.
9.3 Non-current Other receivables of '6 crore represents amount receivable from Oil India Social Security Scheme
Fund towards refund of Seed Capital.
9.4 The Deposit under Site Restoration Scheme represents company's share in the amount deposited with State
Bank of india under section 33ABA of the Income Tax Act, 1961 in respect of unincorporated JV Blocks. The amount
can be withdrawn only for the purposes specified in the Scheme i.e., towards removal of equipment and installations in
a manner agreed with Central Government pursuant to an abandonment plan. This amount is considered as restricted
cash and hence not considered as Cash and cash equivalents.
13.2 Trade receivables primarily comprise of government related entities. These government related entities have
very strong capacity to meet their obligations. The Company allows credit period of 15-30 days to its customers
for payment. Normally, payments are made by the customers on or before the due dates. The management does
not anticipate any payment default from these customers other than those already provided for. Hence, as per
the prevailing circumstances, management does not consider the increase in credit risk from the time of initial
recognition of trade receivables and at the reporting date as significant.
13.3 As per IndAS 109, the Company has used a practical expedient by computing the expected credit loss allowance
for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss
experience and adjusted for forward-looking information.
13.4 The details of allowances for doubtful receivables are as under: -
15.1 If the dividend has not been paid or claimed within 30 days from the date of its declaration, the Company is
required to transfer the total amount of the dividend which remains unpaid or unclaimed, to a special account
maintained by the Company in a scheduled bank as "Unpaid Dividend Account". The unclaimed dividend lying with
the Company is required to be transferred to the Investor Education and Protection Fund (IEPF), administered by
the Central Government after a period of seven years of its declaration.
15.2 Bank Balance with Repatriation restrictions as on 31st March, 2024 represents an amount of F.CFA 44,302,163
(INR equivalent ' 0.61 crore) freezed by CITI Bank, Gabon and ORA Bank Gabon in the Bank Account of Block
Shakthi Gabon Project, consequent to a direction of the Gabonese court in a legal case.
15.3 Balances with Bank held for security against overdraft represent amount deposited with ORA Bank, Gabon for
opening of overdraft facility for Block Shakti at Gabon.
15.4 Deposit in Escrow Account represents amount deposited with State Bank of India, New Delhi for Kharsang
Field which is related to dispute regarding calculation of share of profit petroleum including interest payable to
Government of India as per Production Sharing Contract (PSC).
17.2 The consortium of OIL & OVL holds 45% PI each in two overseas exploration blocks, SS-04 and SS-09 in Bangladesh
with BAPEX (National Oil company) holding the balance PI of 10% with validity of Initial Exploration Phase (IEP)
till 16.02.2025. The company had issued bank guarantee amounting to '285.55 crore (USD 33.10 Million) for both
the blocks in favour of PetroBangla, Regulator. As the validity of both the blocks were till 16.02.2025, the operator
vide letter dated 21.11.2024 requested Petrobangla for extension of the validity for both the blocks. However,
envisaging short time left for expiry of the blocks, Petrobangla served BG invocation letter on 12.02.2025 and
both the BGs were invoked pending confirmation from EMRD regarding extension.
Subsequently, EMRD, Ministry vide letter dated 19.02.2025, granted extension of the Initial Exploration Period
(IEP) of Blocks SS-04 and SS-09 from 17.02.2025 to 16.02 2027. In addition, PetroBangla has also agreed to refund
the invoked amount, subject to the submission of a fresh bank guarantee for the same amount.
17.3 The details of allowances for doubtful receivables are as under: -
21.1 Nature and purpose of reserves:
(a) Foreign Currency Monetary Item Translation Difference Account: Exchange difference on long-term foreign
currency monetary items are accumulated in a Foreign Currency Monetary Item Difference Account and
amortised over the balance period of such long term foreign currency monetary item in continuance of policy as
permitted under D13AA of Ind AS 101.
(b) Debenture Redemption Reserve: Debenture Redemption Reserve is created out of the profits of the Company,
and the amount credited to such account shall not be utilised by the Company except for the redemption of
bonds. During the year an amount of '436.06 crore has been transferred from Debenture Redemption Reserve to
General Reserve on redemption of USD 500 million unsecured 5.375% Notes (Refer note 28.1).
(c) Capital Redemption Reserve: Capital Redemption Reserve is created out of the Securities Premium/General
Reserve, a sum equal to nominal value of the fully paid up own equity shares purchased by the Company. The
amount credited to such account may be applied in paying up unissued shares of the Company to be issued to
members of the Company as fully paid bonus shares. During the year Capital Redemption Reserve has been
utilised for issue of fully paid bonus shares.
(d) General Reserve: The General reserve is used from time to time to transfer profits from retained earnings for
appropriation purposes. General Reserve is free reserve of the Company and is used for the purposes like issuing
bonus shares, buy back of shares etc. During the year General Reserve amounting to '447.27 crore has been
utilised for issue of fully paid bonus shares.
(e) Retained Earnings: The retained earnings comprises of Profit / (loss) transferred from statement of profit and
loss after payment of interim and final dividend if any. It also includes remeasurement of net defined benefit plan
as per actuarial valuations which will not be reclassified to statement of profit and loss.
21.2 Other Comprehensive Income: It includes the cumulative gains/losses arising on measurement of equity
instruments designated at fair value through Other Comprehensive Income. On derecognition of such equity
instruments the net amount shall be transferred to retained earnings.
21.3 The amount that can be distributed by the Company as dividends to its equity shareholders is determined
considering the requirements of the Companies Act,2013. In the AGM held on 14th September 2024, the
shareholders approved final dividend of '3.75 (37.5%) per equity share (pre-bonus) which translates into
final dividend of '2.50 (25%) per equity share (post-bonus) for FY-2023-24. On 5th November 2024 and
7th February 2025, the Company had declared interim dividend of '3.00 per share (30%) and '7.00 per share
(70%) respectively. The final dividend and interim dividends have since been paid.
The Board of Directors in its meeting held on 21st May, 2025 has recomended a final dividend of '1.50 per share
(15%) be paid on fully paid-up equity shares for the FY 2024-25. This final dividend shall be subject to approval
by shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial
statements. The total estimated equity dividend to be paid is '243.99 crore.
31.1 (i) As per approval of the Cabinet Committee on Economic Affairs (CCEA), for development of infrastructure
for supply of gas to the Brahmaputra Cracker and Polymers Limited (BCPL), the Company has received
an amount of '215.00 crore from Ministry of Chemical and Fertilizers. The same has been recognised as
deferred income in the Balance Sheet and transferred to the Statement of profit & loss on a systematic and
rational basis over the useful life of the related assets. The unamortised grant amount as at 31st March 2025
is ' 4.15 crore (current) and ' 69.68 crore (non-current). The figures for previous year is ' 3.98 crore (current)
and ' 73.99 crore (non-current).
(ii) There are no unfulfilled conditions or contingencies attached to these grants.
(iii) During the year ended 31st March, 2025, the Company has recognized an amount of ' 4.14 crore (previous
year ' 3.98 crore) as amortization of deferred income in the Statement of Profit or Loss.
38.1 Pursuant to directives from Government of India, the Company has raised overseas borrowings for acquiring
4% participating interest in Rovuma 1 offshore block in Mozambique through Joint Venture Company M/s Beas
Rovuma Energy Mozambique Ltd (BREML), where the Company has 40% shareholding. In the opinion of the
Management, there is no explicit restriction by Government of India with regard to servicing of such overseas
borrowings from domestic resources of the Company. Interest servicing of ' 659.45 crore (previous year ' 617.71
crore) on such overseas borrowings have been met from domestic resources. The Company has informed
MoP&NG that servicing of interest on the overseas borrowings raised for financing of above transaction is being
done from domestic resources.
38.2 Applicable Net (Gain) / Loss on Foreign Currency Transactions and Translation represents the exchange
difference arising out of foreign currency borrowings to the extent of difference between the cost of borrowings
in functional currency (?) as compared to the cost of borrowings in foreign currency.
43.3 Financial Risk Management
43.3.1 Objective
The Company monitors and manages the financial risks relating to the operations of the Company by analysing
exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate
risk and price risk), credit risk and liquidity risk.
43.3.2 Commodity Risk
Crude oil and Natural gas price of the company are linked to international prices of crude oil/natural gas. In case of any
upward or downward movement in the international prices of crude oil/natural gas, the revenue of the Company get
affected correspondingly. Therefore, the company is exposed to commodity price risk.
43.3.3 Market Risk
The Company activities exposes it primarily to the financial risks of changes in foreign currency exchange rates,
interest rate risk , market exposures that are measured using sensitivity analysis.
43.4 Foreign Currency Risk Management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise.
The price of crude oil and natural gas produced and sold by the company are linked to US Dollars, though billed and
received in INR. Hence any movement in the USD against INR has direct impact on the future cash flows of the company
on account of sale of these products.
43.4.1 Foreign Currency Sensitivity Analysis
The Company is mainly exposed to the currency of United States of America (USD).
The following table details the Company's sensitivity to a 5% increase and decrease in the INR against USD.The
sensitivity analysis includes only outstanding foreign currency denominated monetary items as at period end and
adjusts their translation at the period end for a 5% increase and decrease in foreign currency rates.
43.4.2 Forward foreign exchange contracts
There is no forward foreign exchange contract outstanding as on balance sheet date.
43.5 Interest rate risk management
The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest
rates and make investment in mutual funds. Periodical interest rate on floating interest loan or receivable on mutual
fund investment are linked to market rates. The risk is managed by the Company by maintaining an appropriate mix
between fixed and floating rate borrowings. The Company policy allows to use forward interest rate agreements (FRA's)
or interest rate swap as per the requirements.
The Company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management Refer note 43.8.
43.5.1 Interest Rate Sensitivity Analysis
The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives and
non-derivative instruments at the end of the reporting period. The analysis is prepared based on the floating interest
rate assets and liabilities, assuming that the amount outstanding at the end of the reporting period was outstanding
for the whole year.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company's:
Loan Taken
• Profit and Equity for the year ended March 31, 2025 would decrease/increase by ' 27.60 crores (for the year ended
March 31, 2024 : decrease/increase by ' 9.58 crores).
43.6 Price risk
The Company is exposed to equity price risks arising from equity investments in Indian Oil Corporation Limited.
Exposure in mutual funds
The Company also manages surplus fund through investments in debt mutual fund plans regulated by Securities
Exchange Board of India (SEBI). The NAV declared by Asset Management Companies(AMC) has generally remained
constant on the mutual funds plan taken by the company. However, if the NAV of the fund is increased/decreased by
5%, the sensitivity analysis has been mentioned below:
• Profit and Equity for the year ended March 31, 2025 would increase/decrease by ' 15.37 crores (for the year ended
March 31, 2024 : decrease/increase by ' 25.22 crores).
43.6.1 Equity Price Sensitivity Analysis
The sensitivity analysis below have been determined based on the exposure to price risks at the end of the reporting
period.
If equity prices had been 5% higher/lower:
• Other comprehensive income and Equity for the year ended March 31, 2025 would increase/decrease by ' 406.94
crores (for the year ended March 31, 2024 would increase/decrease by ' 549.84 crores).
43.7 Credit Risk Management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral security, wherever appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company regularly monitors its counterparty limits by reviewing the outstanding balance and ageing of the same.
The Company has a credit policy that is designed to ensure that consistent processes are in place to measure and
control credit risk. Credit risk is considered as part of the risk-reward balance of doing business. On entering into
any business contract the extent to which the arrangement exposes the Company to credit risk is considered.
43.8 Liquidity Risk Management
Liquidity risk is the risk that suitable sources of funding for the Company's business activities may not be available.
The Company manages liquidity risk by monitoring its forecast and actual cash flows, maintaining adequate reserves
and by matching the maturity profiles of financial assets and liabilities.
43.8.1.1 The table below provides details regarding the contractual maturities of financial liabilities including estimated
44.2 Defined Benefit Plans
The various Benefit Plans which are in operation in the Company are Oil India Limited Employees Provident Fund
(OILEPF), Oil India Limited Staff Provident Fund (OILSPF), Oil India Gratuity Fund (OIGF), Oil India Employees' Pension
Fund (OIEPF), Oil India Pension Fund (OIPF), Leave Encashment Fund, Post-Retirement Medical Benefit and Social
Security Scheme Fund. The present value of the obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee
benefits entitlement and measures each unit separately to build up the final obligation.
The amount recognized in the Balance Sheet as the present value of the defined benefit obligation is net of the fair
value of plan assets at the Balance Sheet date.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk
and salary risk.
Note:
1. Revenue mentioned above, represents revenue from external customers. No revenue is generated from
transactions with other operating segments of the same entity.
2. Revenue and expenses directly identifiable to the segments have been allocated to the relative primary reportable
segments.
3. Segment revenue and expenses which are not directly identifiable to the primary reportable segments have been
disclosed under others which primarily include business development services.
4. Assets and liabilities which are directly identifiable to the segments have been allocated to relative segments.
5. Assets and liabilities which are not directly identifiable to the segments have been disclosed under unallocated.
6. All assets are allocated to reportable segments other than investments in subsidiaries, associates and joint
ventures, other investments, loans and current and deferred tax assets.
7. There are no reportable geographical segments.
8. Information about major customers:
The Company's significant revenue from operations comes from sales to Public Sector Undertakings (PSUs). The
total sales to such PSUs during the year ended 31st March, 2025 amounted to ' 22,100.71 crore (previous year
' 22,105.94 crore). Sales to such PSUs during the year ended contributed around 99.93% of the total sales (previous
year 99.89%). The Company has lodged ' 795.81 crore (previous year ' 784.39 crore) to Ministry of Petroleum &
Natural Gas against claim recovery of Natural Gas during the year ended 31st March, 2025. The contribution of
claim recovery of Natural Gas towards sales revenue during the year ended 31st March, 2025 is 3.60% (previous
year 3.54%). No other single customer contributed 10% or more to the Company's revenue from operations for
the year ended 31st March, 2025.
*On 14th January 2022, Oil India (USA) Inc., the wholly owned subsidiary of the Company closed the deal to divest its
entire stake in Niobrara shale oil and gas asset in USA. Subsequent to the divestment, OIL Board, in its 536th Meeting
held on 23rd September, 2022 approved winding up of Oil India (USA) Inc. Along with the divestment proceeds, the US
Corporation repatriated its available funds to the parent Company. After compliance of applicable US laws, Oil India
(USA) Inc. has been wound up on 2nd May,2023.
** Oil India International BV, Netherlands, the wholly owned subsidiary of OIL has 50% stake in a JV company WorldAce
Investments Limited, Cyprus which in turn owns 100% of the voting equity in Stimul-T LLC, a Russian registered legal
entity, which owns block Licence 61 in the Tomsk region of the Russian Federation. Stimul-T LLC filed application
for bankruptcy in the Arbitration Court of Tomsk, Russia on 10th May, 2023. The application for Bankruptcy has
been accepted by the Arbitration Court and in its ruling dated 8th November, 2023 appointed a Temporary Manager
(Bankruptcy Trustee) and initiated the supervision stage of Bankruptcy which is currently in progress.
***The Company through its subsidiary Oil India International Pte Limited, registered in Singapore invested in oil blocks
in Russia through Joint Ventures registered in Singapore. The Russian oil block entities have declared dividends which
have been received in bank accounts in Russia of Singapore Joint Ventures. However, on account of restrictions
imposed by the Central Bank of Russia during the reporting period (for now valid till 30th September 2025), the funds
cannot be repatriated to Singapore till said restriction is in force.
**** A wholly owned subsidiary in the name of "OIL Green Energy Limited" was incorporated on 31st January 2025. The
company has been formed for energy generation through non-conventional/ renewable sources. The registered office
of the company is in Delhi. The company during the year has allotted 50,00,000 number of equity shares of the face
value of ' 10 per share fully paid up to Oil India Limited.
The board of directors of the Company in its meeting held on 07th May 2025 accorded the approval for
incorporating a wholly owned subsidiary (Finance Company) at GIFT city Gujrat to carry on the business in
accordance with the IFSC rules and regulations subject to approval of DIPAM and other applicable regulatory
approvals.
LEASES
The Company has adopted Ind AS 116 "Leases" with effect from 1st April 2019 and has elected to apply modified
prospective transition approach to measure the right-to-use asset at an amount equal to the lease liability and initial
estimate of decommissioning obligation, if applicable at the date of transition.
The Company has applied Ind AS 116 to hiring contracts of vehicles, rigs, cranes, crawlers, compressors, buildings, etc.
to evaluate whether these contracts contain lease components. Based on the evaluation of the terms and conditions
of the contracts, the Company has evaluated the lease components of such contracts falling under the purview of Ind
AS 116. The lease contracts, with limited exceptions, are recognized in the financial statements by way of right-of-use
assets corresponding lease liabilities and initial estimate of decommissioning obligation. The lease liabilities were
measured at the present value of the remaining lease payment and discounted using Government of India Bond rate.
The Company had also elected to apply the following practical expedients available under Ind AS 116:
a) Short term leases / Low-value assets: The Company has elected short term leases and low value assets leases
for recognition exemption in terms of Ind AS 116. The Company recognizes the lease rental payment associated
with short term leases and low value assets as expense in the Statement of Profit & Loss. During the year ended
31st March 2025, the expenditure charged to profit & loss statement in respect to short-term leases and low-
value assets are as below:
b) Discount rate: The Company has applied incremental borrowing rate as discounting factor to each lease of
similar assets in similar economic environment with a similar end rate. The Government of India Bond rate has
been bucketed into 0-3 years, 3-5 years, 5-10 years and above 10 years to different lease contract falling in those
periods. The Company has applied a single discount rate to a portfolio of leases of similar assets in a similar
economic environment with a similar end date.
The contracts such as vehicle hiring, drilling rigs hiring, bundle service contracts, etc. involve a number of additional
services and components including personnel cost, maintenance, drilling related activities, consumables and other
items. In most of such contracts, the additional services/non-lease components constitute significant portion
of the overall contract value. Where the additional services/non-lease components are not separately priced, the
consideration paid has been allocated based on the relative stand-alone prices of the lease and non-lease components.
ii. Other matters for which the Company is contingently liable:
Commitments:
(a) Capital Commitments:
(i) The estimated amount of contracts remaining to be executed on Capital Account and not provided for in the
accounts are ' 187.33 crore (previous year ' 846.50 crore).
(ii) The Company's share of Capital Commitment in Non-Operated Joint Venture Block AAP-ON-94/1 is Nil (previous
year ' 9.59 crore).
(iii) The Company's share of Capital Commitment in Non-Operated Joint Venture Block Kharsang-PSC is ' 21.32 crore
(previous year 20.63 crore).
(b) Other Commitments:
(i) The estimated amount of contracts remaining to be executed on Revenue Account and not provided for in the
accounts are ' 83.05 crore (previous year ' 69.89 crore).
(ii) The balance of Minimum Work Program (MWP) by the Company under Production Sharing Contracts (PSCs) /
Revenue Sharing Contract (RSCs) entered for NELP / HELP / DSF Blocks with Govt. of India is '3515.62 crore
(previous year ' 4,095.10 crore). The commitment is covered by Bank Guarantee as referred in point no 50.i.(b).(ii).
(iii) The balance of Minimum Work Program (MWP) by the Company under Production Sharing Contracts (PSCs)
entered for overseas Blocks is ' 442.14 crore (previous year ' 432.34 crore).
(iv) Commitment towards Right issue of equity shares of M/s Numaligarh Refinery Limited is ' 550.95 crore (previous
year ' 1,101.90 crore).
(v) The Company is required to carry out activities such as infrastructure creation for drinking water supply,
sanitisation, health, education, skill development, roads, cross drains, electrification including solar power,
solid waste management facilities, scientific support and awareness to local farmers to increase yield of
crop and fodder, rain water harvesting, soil moisture conservation works, avenue plantation, plantation in
community areas, etc. under Corporate Environment Responsibility (CER) as per the directions of the Ministry
of Environment, Forest and Climate Change (MoEF&CC), Government of India. The commitments towards these
activities are decided at the time of grant of Environment Clearance based on public hearing conducted, social
need assessment etc. for affected areas around the proposed project. The total outstanding commitments of
the Company towards Corporate Environment Responsibility stands at ' 63.96 crore as on 31st March 2025 to
be fulfilled over the period of the validity of the Environment Clearances or as prescribed by MoEF&CC. (' 79.50
crore as on 31st March 2024).
(*) Reflects changes due to different conversion factors.
(#) Shown to the extent of participating interest of the Company.
Reserves are calculated in terms of Million Metric Ton.
(v) Proved and Proved Developed Reserves of oil (including condensates) and gas are technically assessed
and reviewed in-house at the end of each year in line with international practices. Reserves are audited
by external experts at periodical intervals. For the purpose of estimation of Proved and Proved Developed
Reserves, Deterministic Method is used by the Company. Production pattern analysis, number of additional
wells to be completed, application of enhanced recovery techniques, validity of mining lease agreements,
agreements/MOU for sales are taken into consideration for determining reserves quantity.
NOTE-56
DISCLOSURE UNDER INDIAN ACCOUNTING STANDARD 36 - IMPAIRMENT OF ASSETS:
56.1 The Company is primarily engaged in exploration, development and production of crude oil & natural gas. Cash
generating unit (CGU) for impairment testing of Oil & Gas assets are carried out considering fields as a single CGU
except for Rajasthan fields where common facilities are used and impairment testing is performed in aggregate
for Rajasthan Fields.
The Value in Use of producing/developing each field is estimated on the basis of proved and probable reserves (2P).
Where further development of the fields in the CGUs are under progress, expected cost of future development is
also considered while determining the value in use.
In assessing value in use, the estimated future cash flows from the continuing use of assets and from its disposal
at the end of its useful life are discounted to their present value by applying weighted average cost of capital as
discounting rate. (as at March 31st, 2025: 12.04 % and as at March 31st, 2024: 13.47 %).
56.2 The Company after considering the current business conditions make an assessment of future prices of crude
oil and natural gas on the basis of internal and external information / indicators of future economic conditions.
Based on the assessment, recoverable value of the CGUs is higher than carrying amount and accordingly there is
no impairment loss during current period in respect of producing/developing assets.
56.4 As per accounting policy of the Company, impairment provision of Exploratory wells in progress has been provided
amounting to ' 569.06 Crore (Previous year: ' 532.81 crore) net of reversal.
56.5 The Company also carried out impairment testing of other CGU units like Pipeline, LPG Plant and Renewable
Energy considering each of these as separate cash generating units. As value in use of these CGU units were
more than the carrying value, there is no impairment loss during the year.
56.6 The Company's investment in subsidiaries, associates and joint ventures are tested for impairment when there is
any significant indication that those investments have suffered an impairment loss. During the year impairment
assessment of such investments was carried out and the recoverable amount of such investments were more
than the carrying value and there is no impairment loss on such investments.
OTHER DISCLOSURES
58.1 Physical verification of Property, Plant and Equipment (PPE):
Physical verification of the property, plant and equipment (PPE) is carried out by the Company in a phased manner
over a period of 3 years which will be completed on 31.03.2027. Accordingly, 63.31% of PPE in terms of value has been
physically verified during the year ended 31.03.2025. A Provision of ' 7.84 Crore (previous year ' 9.37 crore) has been
created towards discrepancies found during physical verification of PPE.
58.2 Information as per Indian Accounting Standard (Ind AS) 23 "Borrowing Costs"
Finance cost on lease liability capitalized to wells during the Year ended 31st March, 2025 is ' 28.14 crore (previous year
' 18.20 crore).
58.3 Disclosure on Expiry of Power Purchase Agreement (PPA)
The Company entered into Power Purchase Agreement (PPA) with Jodhpur Vidyut Vitaran Nigam Limited (JdVVNL) for
supply of electricity generated from solar power plants validity of which expired on 31st March 2019. The Company vide
letter no R/TS/RE/2019-80 dated 26th March 2019, submitted its request for extension of validity of the PPAs of both the
Solar Power Plants for the remaining useful life to Rajasthan Urja Vikas Nigam Limited (RUVNL), under the Renewable
Energy Certificate and Renewable Purchase Obligation Compliance Framework which is yet to be finalized.
In view of inordinate delay in response from JdVVNL in execution of the agreement, the Company has filed a writ
petition with Hon'ble Rajasthan High Court, Jaipur Bench for finalization of Power Purchase Agreement. During the
hearing held on 5th November 2019, Hon'ble Rajasthan High Court, Jaipur Bench ordered that pending disposal of the
writ petition, the joint meter reading reports shall be signed, without prejudice to the rights of the either party. The
case was last listed for hearing on 13.05.2024 but it was deferred due to vacation of the court. Further hearing took
place on 22.07.2024 wherein Hon'ble Rajasthan High Court directed to State Govt. to file an affidavit and to list the
matter on 27.08.2024. After that no effective hearing has taken place till date .
The sale of renewable energy as disclosed in Note 33 of the financial statement includes an amount of ' 6.56 crore
(previous year ' 7.10 crore) in respect of sale of renewable power from solar power plants. The revenue has been
recognised as per the rate prescribed (' 3.14 per unit) by the Hon'ble Rajasthan Electricity Regulatory Commission
(RERC) pending renewal of the Power Purchase Agreement (PPA) with JdVVNL. Any adjustment arising on finalisation
of the PPA will be accounted in the year of incidence. As per the estimates of the management, the adjustments to the
final price will not be material upon execution of PPA.
58.4 Balance Confirmation
The Company has a system of obtaining periodic confirmation of balances from banks and other parties. Further,
some balances of Trade and Other Receivables, Trade and Other Payables and Loans are subject to confirmation/
reconciliation. Adjustments, if any, is being accounted for on confirmation/reconciliation of the same, which otherwise
do not have a material impact.
58.5 Arrear crude oil transportation revenue and tariff revision.
The Company is engaged in the business of transportation of imported crude oil of Indian Oil Corporation Limited
(IOCL) through its crude oil trunk pipeline from Barauni, Bihar to IOCL's refineries at Bongaigaon and Guwahati.
Tariff for the aforesaid transportation segment was finalised during the financial year 2022-23, as mutually agreed
upon by both the parties. Accordingly, OIL has been raising invoices at revised rates for crude oil transportation to
IOCL from July 2022. Pending signing of the Crude Oil Transportation Agreement (COTA), IOCL has withheld ' 88.44
crore (being 10% of the Invoice amount) from the regular transportation bills as on 31st March, 2025.
58.6 OIDB Loan Assistance to M/s IGGL
In Pursuance of the approval granted by Oil Industry Development Board (OID Board) in its 103rd meeting held on 16th
August, 2021 for OIDB loan assistance of ' 2,594 crore (Rupees Two Thousand Five Hundred Ninety-Four Crore) to M/s
Indradhanush Gas Grid Limited (IGGL), a company promoted by GAIL (India) Ltd., Indian Oil Corporation Ltd., Oil & Natural
Gas Corporation Ltd., Oil India Ltd. and Numaligarh Refinery Ltd. with a share of 20% each. Oil India Limited , being
one of the promoters, have provided an unconditional and unequivocal guarantee to pay an amount of ' 518.80 crore
to OIDB in the event of M/s Indradhanush Gas Grid Limited (IGGL), the borrower, being unable to fulfil its obligation for
repayment of loan amounting to ' 2,594 crore & interest accrued thereon on the due dates and other monies payables
by the said borrower to OIDB in accordance with terms and conditions of the Loan agreement executed between OIDB
and IGGL. The Corporate Guarantee will remain valid and unrevoked till the loan & interest is fully repaid by M/s IGGL
to OIDB. As on 31st March 2025, M/S IGGL has withdrawn fourteen instalments of Loan against the Loan Facility from
OIDB as follows.
1. 1st installment drawn on 22nd July 2022 is ' 200 crore.
2. 2nd installment drawn on 2nd September 2022 is ' 100 crore.
Till 31st March 2025 M/s IGGL has withdrawn total ' 1320 crore and also on 15th November 2022, has paid back the 1st loan
of ' 200 crore which was drawn on 22nd July, 2022.
58.7 Disclosure on Debt Service Undertaking of Mozambique Area 1 Project
Mozambique Area 1 project, wherein OIL has a participating interest (PI) of 4% through BREML, has secured debt
commitment of US$15.40 Billion under Export Credit Agencies (ECA) Direct Loans, ECA Covered Facilities, Commercial
Bank Facilities and a Loan Facility from African Development Bank. It is one of the condition precedents under project
finance arrangement to provide Debt Service Undertaking (DSU) by each of the sponsors of the project. OIL as a DSU
provider undertakes to pay its portion of obligation which is equal to pro-rata share of aggregate amount of advances
at a given point in time based on its PI in the project. In case of OIL, the maximum amount that may be claimed by the
Senior creditors has been capped at US$ 768 Million. As on 31st March 2025, debt of US$ 287.30 Million (US$ 199.30
Million drawn on 26th March, 2021 and US$ 88 Million drawn on 1st April 2021) has been drawn from the lenders at project
level. OIL's share of DSU for its 4% share is US$ 11.49 Million.
58.8 Service Tax and GST on Royalty payment:
Service Tax demand was raised on the Company for the period March, 2016 to June, 2017 seeking to levy Service Tax
on Royalty paid on Crude Oil & Natural Gas under the Oil Fields (Regulation & Development) Act, 1948 for the States of
Assam, Arunachal Pradesh and Rajasthan. The Company has challenged the demand on various grounds by filing writ
petitions before different High Courts. However, pending adjudication of the Writs, the Company has deposited under
protest the entire Service Tax demand of ' 257.13 crore.
Goods and Services Tax (GST) was implemented w.e.f. 1st July, 2017 and as per the FAQs on Government Services
issued by CBIC, GST is payable on Royalty paid for assignment of right to use natural resources. However, based on a
legal opinion obtained by the Company, Service tax/GST is not payable on Royalty payable/paid under the Oil Fields
(Regulation & Development) Act, 1948. The Company has accordingly filed Writ Petitions in different High Courts
challenging such levy. Further, the Hon'ble Gauhati High Court, vide its interim order dated 2nd November, 2021 has
granted stay on the GST on royalty payments made by the Company in the State of Assam until further orders. Keeping
in view the jurisdiction of Gauhati High Court, the Company has submitted a representation to GST Department,
Arunachal Pradesh and the payment of GST on this account in the state of Arunachal Pradesh is presently on hold.
The total GST amount deposited under protest till 31st March, 2025 is ' 1,256.86 crore. Further out of the above-
mentioned amount the Company has received refund of ' 24.42 crore in the State of Assam.
All pending cases of the Company before Gauhati High Court and Rajasthan High Court were transferred to Hon'ble
Supreme Court for hearing by the Nine Judge Constitution Bench. However, Hon'ble Supreme Court vide its order
dated 14th March, 2024 has de-tagged the cases from the civil appeals Nos. 4056-4064/1999. The Hon'ble Supreme
Court vide its order dated 25.07.2024 on a similar case under the Mines and Minerals (Development and Regulation)
Act (MMDR Act) has, inter-alia, stated that royalty paid under MMDR Act is not a tax. However, the nature of royalty
paid under Oilfields (Regulation and Development) Act is to be decided by the Court separately as it has the distinct
constitutional provision.
In view of the substantial time lapsed in litigating the matter, uncertainty involved in securing favourable decision
and accumulation of a huge amount, the Company had internally reviewed the matter and made a provision towards
Service Tax/ GST on royalty on the ground of prudence and conservative principle. The amount provided for the quarter
ended 31st March 2025 is ' 204.41 crore which includes an interest of ' 75.33 crore (' 809.32 crore including interest
of ' 269.46 crore for the year ended 31st March 2025). The total amount provided on account of disputed service tax/
GST on royalty till 31st March, 2025 is ' 3888.65 crore. Amount of ' 2362.72 crore shown as exceptional item during
FY 2023-24 represents the amount of service tax/GST on royalty (including interest ' 80.04 crore) till 31st March,2023.
However, pending adjudication of the matter, the service tax /GST paid under protest has been/ being claimed as an
allowable deduction under the Income Tax Act, 1961.
58.9 Stamp duty and Registration charges of PML:
Revenue & DM Department, Government of Assam issued one Office Memorandum (OM) No. E-274398/2023/85
dated 1st September, 2023 on the process of determining the value of consideration for calculation of stamp duty
and registration fees for registering the deeds of Mining Leases of Oil, Natural Gas, Coal and other minerals including
renewal of the mining lease. At present stamp duty and registration charges of the PML areas are calculated and paid
based on dead rent. But the OM suggests to calculate the same on the basis of average annual royalty payable over the
lease period for the approved production quantity for the PML area instead of dead rent as it is not in conformity with
the statutory provisions under the Indian Stamp Act.
The change in methodology will have a significant impact on the amount of stamp duty and registration charges which
cannot be reliably ascertained. The Company is of the opinion that calculation of stamp duty and registration charges
on the basis of dead rent is in accordance with the provisions of the applicable Acts and Rules. The present move to
alter the basis and relate the same to estimated production over lease period appears contrary to the provisions of
the related Acts and Rules. The Company submitted its representation to the Government of Assam in this regard. No
demand notice has been received from the concerned department relating to any grant/renewal of the PML areas of
the Company.
Further, opinion from Additional Solicitor General of India (ASGI) was sought regarding validity of the above OM issued
by Government of Assam and ASGI in its opinion dated 24.12.2024 had clarified that the proviso to section 26 of Indian
Stamp Act applies to a situation where the royalty is received as a rent or a part of the rent. However, there is a special
act, i.e., The Oil Field (Regulation) and Development Act, 1948 (ORDA) for regulation of oilfields and payment of royalty.
Rent would be payable regardless of whether the property is worked upon or not and is not contingent on discovery
and production of crude oil & natural gas. On the other hand, the value of royalty is always variable depending on the
outcome of the production of the mineral oil and therefore is always likely to be indeterminate at the date of execution
of mining lease. Hence, he opined that section 26 of Indian Stamp Act is not attracted to Petroleum Mining Lease and
therefore inclusion of royalty for the purpose of calculation of stamp duty is not justified and valid.
Accordingly in absence of any demand / clarity on the issue, the amount of firm liability or contingent liability arising
due to above OM issued by Government of Assam is unascertainable.
58.10 Special Additional Excise Duty (SAED):
Government of India (GoI) vide notification no. 05/2022 dated 30th June, 2022 had levied Special Additional Excise
Duty (SAED) on crude oil with effect from 1st July, 2022 which has been revised and notified by GoI from time to
time. During the current financial year, an amount of ' 780.32 crore (previous year ' 1,404.79 crore) related to SAED,
calculated on the applicable quantity excluding such quantity of crude oil produced by the Company which is in excess
of crude oil produced during the preceding financial year has been charged to Statement of Profit & Loss under head
"Excise Duty".
58.11 Flaring of Natural Gas
Director General of Hydrocarbon (DGH) vide its letter dated 04.01.2022 advised the Company to ensure payment of
royalty on the entire volume of natural gas saved and sold i.e. except for natural gas which is unavoidably lost or is
returned to the reservoir or is used for drilling or other operations relating to the production of petroleum, or natural
gas, or both as per Section 6A(3) of the Oilfields (Regulation & Development) Act, 1948 (ORD Act).
As per assessment of the management, entire flaring of natural gas is unavoidable in nature and therefore exempted
from payment of royalty as per the provisions of the ORD Act referred above. Accordingly, no royalty has been paid on
the gas flared which is unavoidably lost.
58.12 Details of charge:
The Company has created charge against the Current Assets to the tune of ' 1027.45 crore (corresponding period
' 922.45 crore) for availing Cash Credit/Letter of Credit/Bank Guarantee Facility.
58.13 Figures of Previous year have been regrouped/reclassified, wherever necessary, to conform to current year
classification.
For GOPAL SHARMA & CO. For RKP ASSOCIATES For and on behalf of the Board of Directors
Chartered Accountants Chartered Accountants
Firm Reg. No. - 002803C Firm Reg. No. - 322473E
Sd/- Sd/- Sd/- Sd/- Sd/-
(CA Gautam Sharma) (CA [Dr.] Kamal Mour) A K Sahoo Abhijit Majumder Dr. Ranjit Rath
Partner Partner Company Secretary Director (Finance) Chairman & Managing Director
Membership No. 079225 Membership No. 067544 DIN 10788427 DIN 08275277
Place: Noida
Date: 21th May 2025
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