MIRA INFORM REPORT

 

 

Report Date :

10.08.2011

 

IDENTIFICATION DETAILS

 

Name :

INDIAN OIL CORPORATION LIMITED

 

 

Registered Office :

Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400051, Maharashtra

 

 

Country:

India

 

 

Financials (as on):

31.03.2010

 

 

Date of Incorporation :

30.06.1959

 

 

Com. Reg. No.:

11-11388

 

 

Capital Investment / Paid-up Capital :

Rs.24279.500 millions

 

 

CIN No.:

[Company Identification No.]

L23201MH1959GOI011388

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUM105274D

DELI00132G

DELI04214A

 

 

PAN No.:

[Permanent Account No.]

AAACI1681G

 

 

Legal Form :

Public Limited Liability Company. Company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturing and Selling of Petroleum Products.

 

 

No. of Employees :

31945 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (74)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 2000000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced respectable and resourceful businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

It can be regarded as a promising business partner in medium to long run.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INFORMATION DECLINED BY

 

Note : Management non Co-Operative [ Name not Disclosed]

 

 

LOCATIONS

 

Registered Office :

Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400051, Maharashtra, India

Tel. No.:

91–22–26423272/ 26443880/ 26400926/ 26427363 Extn. 7616/ 7528/ 26441825/ 30/ 31

Fax No.:

91–22–26443880/ 26425903/ 26400606

E-Mail :

srikumar@indianoil.co.in

rajurang@indianoil.co.in

Website :

http://www.iocl.com

 

 

Head Office :

SCOPE Complex, Core 2, 7, Institutional Area, Lodhi Road, New Delhi - 110003, India

Tel. 91-11-24361247/24321704

Fax. 91-11-24361321

E-mail : dasgupta@iocl.co.in

             pkc@iocl.co.in

             govindarajank@iocl.co.in

  

  • P.O. Barauni Oil Refinery, District Begusarai - 861 114, Bihar, India
  • P.O. Jawahar Nagar, District Vadodara - 391 320, Gujarat, India
  • P.O. Noonmati, Guwahati - 781 020, Assam, India
  • P.O. Haldia Refinery, District Midnapur - 721 606, West Bengal, India
  • P.O. Mathura Refinery, Mathura - 281 005, Uttar Pradesh, India
  • P.O. Panipat Refinery, Panipat – 132140, Haryana, India
  • P.O. Dhaligaon 783385, District Chirang Assam, India

 

 

Corporate Office :

3079/3, J B Tito Marg, Sadiq Nagar, New Delhi – 110049, Delhi, India

Tel. No.:

91-11-26260000

 

 

Pipelines Division :
  • A-1, Udyog Marg, Sector 1, Noida – 201301, Uttar Pradesh, India
  • 14, Lee Rrado, Kolkata - 700 020, West Bengal, India
  • P. O. Box 1007, Bedipara, Morvi Road, Gauridad, Rajkot - 360003, Rajasthan, India
  • P. O. Panipat Refinery, Panipat – 132140, Haryana, India
  • Indian Oil Bhavan, 139 Nungambakkam High Road, Chennai - 600034, Tamil Nadu, India

 

 

Assam Oil Division :

P.O. Digboi - 786 171, Assam, India

 

 

Marketing Division  :

HEAD OFFICE

 

G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400051, Maharashtra, India

 

  • Indian Oil Bhavan, 1, Aurobindo Marg, Yusuf Sarai, New Delhi - 110016, India
  • Indian Oil Bhavan, 2 Gariahat Road, South(Dhakuria), Kolkata - 700068, West Bengal, India
  • 254-C, Dr. Annie Besant Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
  • Indian Oil Bhavan 139, Nungambakkam High Road, Chennai – 600034, Tamilnadu, India

 

 

Research And

Development Division :

Sector 13, Faridabad – 121007, Haryana, India

 

 

IBP Division :

34-A, Nirmal Chandra Street, Kolkata – 700013, West Bengal, India

 

 

Overseas Offices :

Mr. K. R Suresh Kumar, Managing Director

Lanka IOC Limited

20th Floor, West Tower, World Trade Centre, Colombo, Sri Lanka

Tel: 00 94 1 475720, 00 94 1 475700

Fax: 00 9411 2391490

Email: lankaioc@lankaioc.com  

 

Mr. Shailendra Mital, Managing Director

Indian Oil (Mauritius) Limited

Mer Rouge, Port Louis, Mauritius

Tel: (230) 217 2710

Fax: (230) 217 2712

Email: indianoil@intnet.mu        

 

Mr. Rakesh Jain, Managing Director

IOC Middle East FZE

Indian Oil Corporation Limited

Office: LOB 14209, Jebel Ali Free Zone, P. O. Box : 261338, Dubai, UAE

Tel :+971-4-8871397

Fax: +971-4-8871035

Email: imefdxb@eim.ae

 

 

DIRECTORS

 

As On 31.03.2010

 

Name :

Mr. Sarthak Behuria

Designation :

Chairman

 

 

Name :

Mr. Brij Mohan Bansal

Designation :

Director [Planning and Business Development]

 

 

Name :

Mr. Serangulam Varadarajan Narasimhan

Designation :

Director [Finance]

 

 

Name :

Mr. Vishan Chandra Agrawal

Designation :

Director [Human Resources]

 

 

Name :

Mr. Gyan Chand Daga

Designation :

Director [Marketing]

 

 

Name :

Mr. Basavaraj Ningappa Bankapur

Designation :

Director [Refineries]

 

 

Name :

Mr. Anand Kumar

Designation :

Director [Research and Development]

 

 

Name :

Mr. Pranab Kumar Chakraborti

Designation :

Director (Pipelines)

 

 

Name :

Mr. Sthanunathan Sundereshan

Designation :

Government Director

 

 

Name :

Mr. Pradeep Kumar Sinha

Designation :

Government  Director

 

 

Name :

Mrs. Indira Parikh, Prof. (Dr.)

Designation :

Independent Director

 

 

Name :

Mr. Anees Yusuf Noorani

Designation :

Independent Director [w.e.f. 01.06.2008)

 

 

Name :

Mrs. Indu Shahani

Designation :

Independent Director [w.e.f. 01.06.2008)

 

 

Name :

Mr. Gautam Barua

Designation :

Independent Director [w.e.f. 01.06.2008)

 

 

Name :

Mr. Michael John Bastian

Designation :

Independent Director [w.e.f. 01.06.2008)

 

 

Name :

Mr. Nirmal Kumar Poddar

Designation :

Independent Director [w.e.f. 01.06.2008)

 

 

Name :

Mr. Kiran Kumar Jha

Designation :

Director (Pipelines) [w.e.f 01.09.2009]

 

 

KEY EXECUTIVES

 

Name :

Mr. Raju Ranganathan

Designation :

Company Secretary

 

 

Name :

Mr. D K Samantaray

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. Vipin Kumar

Designation :

Advisor (Security)

 

 

Name :

Mr. C Dasgupta

Designation :

Executive Director (Gas)

 

 

Name :

Mr. V P Sharma

Designation :

Executive Director (Internal Audit)

 

 

Name :

Mr. S S Soni

Designation :

Executive Director (Information Systems)

 

 

Name :

Mr. P K Goyal

Designation :

Executive Director (Finance), Refineries

 

 

Name :

Mr. V K Sood

Designation :

Executive Director (Corporate Finance)

 

 

Name :

Mr. S C Jain

Designation :

Executive Director (Finance-Business Development)

 

 

Name :

Mr. J P Guharay

Designation :

Executive Director, Mathura Refinery

 

 

Name :

Mr. R Narayanan

Designation :

Executive Director (Corporate Affairs)

 

 

Name :

Mr. A K Guha

Designation :

Executive Director (Business Development -R and PL)

 

 

Name :

Mr. K K Gupta

Designation :

Executive Director, Indian Oil Institute of Petroleum Management

 

 

Name :

Mr. T Vasudevan

Designation :

Executive Director (Finance), Pipelines

 

 

Name :

Mr. Gautam Dutta

Designation :

Executive Director (Finance), Marketing

 

 

Name :

Mr. S K Garg

Designation :

Executive Director, Barauni Refinery

 

 

Name :

Mr. A K Roy

Designation :

Executive Director, Haldia Refinery

 

 

Name :

Mr. Thomas Antony

Designation :

Executive Director (Human Resources Development)

 

 

Name :

Mr. K K Jha

Designation :

Executive Director (Projects), Pipelines

 

 

Name :

Mr. A M K Sinha

Designation :

Executive Director (Corporate Planning and Economic Studies)

 

 

Name :

Mr. A K Rauniar

Designation :

Executive Director (Human Resources), Pipelines

 

 

Name :

Mr. K G Gupta

Designation :

Executive Director (Safety, Health and Environment)

 

 

Name :

Mr. Satish Kumar

Designation :

Executive Director (Human Resources)

 

 

Name :

Mr. G Bhanumurthy

Designation :

Executive Director, Guwahati Refinery

 

 

Name :

Mr. R K Puri

Designation :

Executive Director (Coordination), Marketing

 

 

Name :

Ms. D Lilly

Designation :

Executive Director (Pricing and Taxation)

 

 

Name :

Mr. H V Singh

Designation :

Executive Director (Projects-PDRP), Refineries

 

 

Name :

Mr. V S Okhde

Designation :

Executive Director (Exploration and Production)

 

 

Name :

Mr. R K Ghosh

Designation :

Executive Director, Incharge-Panipat Refinery

 

 

Name :

Mr. N K Bansal

Designation :

Executive Director (Shipping), Refineries

 

 

Name :

Mr. N K Khosla

Designation :

Executive Director (Projects - PNCP), Refineries

 

 

Name :

Mr. Sudhir Bhalla

Designation :

Executive Director (Human Resources), Refineries

 

 

Name :

Mr. Gautam Datta

Designation :

Executive Director (Human Resources), Marketing

 

 

Name :

Mr. R K Malhotra (Dr)

Designation :

Executive Director, R and D

 

 

Name :

Mr. Amitava Chatterjee

Designation :

Executive Director (Lubes), Marketing

 

 

Name :

Mr. R Sareen

Designation :

Executive Director (Aviation), Marketing

 

 

Name :

Mr. M Nene

Designation :

Executive Director (Supplies), Marketing

 

 

Name :

Ms. Mrinal Roy

Designation :

Executive Director (LPG), Marketing

 

 

Name :

Mr. A S Ujwal

Designation :

Executive Director (International Trade)

 

 

Name :

Mr. S Ramasamy

Designation :

Executive Director (Information Systems)

 

 

Name :

Mr. N Srikumar

Designation :

Executive Director (Corporate Communications, Branding and Planning), Marketing

 

 

Name :

Mr. Anil Tandon

Designation :

Executive Director (Operations), Pipelines

 

 

Name :

Mr. A S Basu

Designation :

Executive Director, Gujarat Refinery

 

 

Name :

Mr. S K Gupta

Designation :

Executive Director (Consumer Sales), Marketing

 

 

Name :

Mr. V K Jeychandran

Designation :

Executive Director, Gujarat State Office

 

 

Name :

Mr. Satwant Singh

Designation :

Executive Director (Engineering and Projects), Marketing

 

 

Name :

Mr. M Ramana

Designation :

Executive Director, Andhra Pradesh State Office

 

 

Name :

Mr. D Sen

Designation :

Executive Director, West Bengal State Office

 

 

Name :

Mr. S C Meshram

Designation :

Executive Director (Petrochemicals)

 

 

Name :

Mr. S K Roy

Designation :

Executive Director (Cryogenics), IBP Division

 

 

Name :

Mr. R S Solanki

Designation :

Executive Director (CEO, IndianOil Foundation)

 

 

Name :

Mr. Jai Gopal

Designation :

Executive Director, Anti Adulteration Cell

 

 

Name :

Mr. V Ramaswamy

Designation :

Executive Director (Finance), IBP Division

 

 

Name :

Mr. A Panda

Designation :

Executive Director (Safety and Environment), Refineries

 

 

Name :

Mr. C S Das

Designation :

Executive Director (Maintenance and Inspection), Refineries

 

 

Name :

Mr. Prithviraj Sur

Designation :

Executive Director (Operations), Refineries

 

 

Name :

Mr. Deepak Pandya

Designation :

Executive Director, Maharashtra State Office

 

 

Name :

Mr. DSL Prasad

Designation :

Executive Director, Tamil Nadu State Office

 

 

Name :

Mr. E Unnikrishnan

Designation :

Executive Director (Pricing), Marketing

 

 

Name :

Mr. S K Sinha

Designation :

Executive Director, Western Region Pipelines

 

 

Name :

Mr. U L Dohare

Designation :

Executive Director (Projects), Refineries

 

 

Name :

Mr. S N Choudhary

Designation :

Executive Director (Projects-PNCP), Panipat

 

 

Name :

Mr. Subrato Ghosh

Designation :

Executive Director, Assam Oil Division

 

 

Name :

Mr. H S Bedi

Designation :

Executive Director (Retail Sales), Marketing

 

 

Name :

Mr. A Saran

Designation :

Executive Director, Bongaigaon Refinery

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2010

 

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Central Government / State Government(s)

1916155710

78.92

Sub Total

1916155710

78.92

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

1916155710

78.92

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

45915771

1.89

Financial Institutions / Banks

1954097

0.08

Insurance Companies

74708304

3.08

Foreign Institutional Investors

21360089

0.88

Sub Total

143938261

5.93

(2) Non-Institutions

 

 

Bodies Corporate

23238942

9.57

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

69442914

2.86

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

3350435

0.14

Any Others (Specify)

62801492

2.59

Non Resident Indians

1327468

0.05

Trusts

58484962

2.41

Clearing Members

248160

0.01

Foreign Nationals

456

--

Custodian

40446

-

Governor of Gujarat

2,700,000

0.11

Sub Total

367858511

15.15

Total Public shareholding (B)

511,796,772

21.08

Total (A)+(B)

2,427,952,482

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

 

 

 

Total (A)+(B)+(C)

2,427,952,482

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Selling of Petroleum Products.

 

 

Products :

Product Description

Item Code No.

 

Bulk Petroleum Products

27.10

Crude Oil

27.09

Lubricants

2710.90

 

  • Auto Gas
  • Indian Oil Aviation Service            
  • Bitumen
  • High Speed Diesel
  • Bulk/Infustrial Fuels
  • Indane Gas
  • SERVO lubricants and greases
  • Agricultural Spray Oils
  • Automotive Greases
  • Automotive Lubricating Oils
  • Automotive Speciality Oils
  • Industrial Greases
  • Industrial Lubricating Oils
  • Industrial Speciality Oils
  • Metal Working Oils

 

 

PRODUCTION STATUS (As on 31.03.2010)

(Figures in lakh)

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Crude Processing

MTs

488.50

512.000

458.77

Lubricating Oil                Note C

                                       Note E

MTs

2.40

3.75

2.40

3.07

3.65

1.09

Wax/Bitumen/Asphalt Lube Oil Drums

Nos.

15.00

15.00

4.78

Oxygen Plant

CU.M.

Not Specified

0.84

0.00

Propylene Recovery Unit

MTs

0.54

0.48

0.10

MTBE Unit

MTs

0.37

0.37

0.31

Butene Plant

MTs

0.00

0.00

0.00

Lab Plant

MTs

1.20

1.20

1.24

PX /PTA Plant

MTs

5.53

5.53

5.31

Cryocontainer and Accessories

Nos.

0.13

0.17

0.17

Industrial Explosive (Cartridge)

MTs

0.00

0.00

0.00

Site Mixed Slurry Explosives

MTs

0.89

0.63

0.58

Xylene

MTs

0.29

0.29

0.00

PSF

MTs

0.30

0.30

0.00

 

NOTE:

 

A. i) Licensed Capacity of Refinery is not specified for Assam Oil Division.

ii) Capacity for projects under construction not considered.

iii) Licensed Capacity of Crude Processing has increased during the year due to merger of erstwhile BRPL.

 

B. As certified by the Management and relied upon by the auditors.

 

C. Per year operating in single shift.

 

D. i) Represents finished petroleum products.

ii) Excludes crude processed in secondary units for other companies/refiners.

 

E. Per year operating in two shifts.

 

F. Capacity for Detonating Fuse and Cast Boosters have not been shown, being negligible.

 

 

GENERAL INFORMATION

 

No. of Employees :

31945 (Approximately)

 

 

Bankers :
  • State Bank of India
  • United Bank of India
  • HDFC Bank Limited

 

 

Facilities :

Secured Loans :

 

As on 31.03.2010

Rs. in Millions

As on 31.03.2009

Rs. in Millions

Bonds:

Non-Convertible Redeemable Bonds - Series - V A

2212.000

2528.000

Non-Convertible Redeemable Bonds - Series - VI B

10000.000

10000.000

Non-Convertible Redeemable Bonds - Series - VII B C 

5000.000

5000.000

Non-Convertible Redeemable Bonds - Series - VIII A D 

4300.000

4300.000

Non-Convertible Redeemable Bonds - Series - VIII B E                           

10700.000

10700.000

Non-Convertible Redeemable Bonds - Series - IX F

16000.000

16000.000

Non-Convertible Redeemable Bonds - Series – IX G

20000.000

0.000

Loans and Advances from Banks: G

Working Capital Demand Loan

47500.000

67500.000

Interest accrued and due on above 

62.500

283.900

Foreign Currency Loans

US $ Nil (2009 : US $ 16.55 million)

0.000

839.400

Loans and Advances from Others:

Loan through Collateralized Borrowings and Lending Obligation (CBLO) of Clearing Corporation of India Limited (CCIL)H

20000.000

22000.000

Oil Industry Development Board (OIDB)

47150.000

36500.000

 

 

 

Total

182924.500

175651.300

 

Amount repayable within one year

 

Notes:

 

A. 158 Bonds of face value of Rs.26.000 millions each allotted on 18.07.2001 are redeemable in 13 equal installments from the end of the 3rd year upto the end of 15th year from the date of allotment. Accordingly, 6th installment (STRPP F) was paid in July 2009. The Bonds carry a coupon rate of 10.25% p.a. payable annually on 30th September. These are secured by way of registered mortgage over the Company's premises no. 301 situated in Bandra Anita Premises Co-op. Housing Society Limited. at Bandra, Mumbai together with 5 shares of Bandra Anita Premises Co-op. Housing Society Limited. These bonds are also secured by way of charge on immovable properties at Panipat Refinery in the state of Haryana ranking pari passu with Bonds series VI, VIII A, VIII

B and IX holders.

 

B. 10,000 Bonds of face value of Rs. 1.000 millions each allotted on 10.05.2005, are redeemable at par on 10.06.2012. The bonds also carry a put/ call option at the end of 5 years from the date of allotment i.e. 10.06.2010, on exercise of which the bonds are redeemable at par. The Bonds carry a coupon rate of 7.15% p.a. payable annually on 30th June. These are secured by way of registered mortgage over Company's premises No. 1343 situated at MIG Adarsh Nagar Co-op. Housing Society Limited. at Worli, Mumbai together with 5 shares issued by MIG Adarsh Nagar Co-op. Housing Society Limited. These Bonds are also secured by way of charge on immovable properties of the company at Panipat Refinery in the state of Haryana ranking pari passu with Bonds series V, VIII A, VIII B SIX holders.

 

C. 5,000 Bonds of face value of Rs.1.000 millions each, allotted on 15.09.2005 are redeemable at par on 15.09.2015. The Bonds carrya coupon rate of 7.40% p.a. payable annually on 15th September. These are secured by way of registered mortgage over the immovable properties of the Company at Gujarat Refinery situated at Vadodara in the state of Gujarat.

 

D. 4,300 Bonds of face value of Rs. 1.000 millions each, allotted on 10.09.2008, are redeemable at par on 10.09.2011. The bonds carry a coupon rate of 11.15 % p.a. payable annually on 15th September. These are secured byway of registered mortgage over the immovable properties of the Company i.e. Flat no. 3/62 Nanik Niwas of Shyam Co-op. Housing Society Limited. situated at Bhulabhai Desai Road at Mumbai, together with 5 shares of the said society and immovable properties of the company at Panipat Refinery situated at Panipat in the state of Haryana, ranking pari passu with Bonds series V, VI, VIII B and IX holders.

 

E. 10,700 Bonds efface value of Rs. 1.000 millions each, allotted on 10.09.2008. are redeemable at par on 10.09.2018. The bonds carry a coupon rate of 11.00 % p.a. payable annually on 15th September. These are secured by way of registered mortgage over the immovable properties of the Company i.e. Flat no. 3/62 Nanik Niwas of Shyam Co-op. Housing Society Limited. situated at Bhulabhai Desai Road at Mumbai, together with 5 shares of the said society and immovable properties of the company at Panipat Refinery situated at Panipat in the state of Haryana ranking pari passu with Bonds series V, VI, VIII A and IX holders.

 

F. 16,000 Bonds of face value of Rs. 1.000 millions each, allotted on 11.12.2008, are redeemable at par on 11.12.2016.The bonds carry a coupon rate of 10.70 % p.a. payable annually on 30th June each year. These are secured by way of registered mortgage over the immovable properties of the Company i.e. Flat no. 3/62 Nanik Niwas of Shyam Co-op. Housing Society Limited situated at Bhulabhai Desai Road at Mumbai, together with 5 shares of the said society and immovable properties of the company at Panipat Refinery situated at Panipat in the state of Haryana ranking pari passu with Bonds series V. VI, VIIIA and VIII B holders.

 

G. 20,000 Bonds of face value of Rs. 1.000 millions each, allotted on 24.07.2009. are redeemable at par on 24.07.2012. The bonds carry a coupon rate of 7.00 % p.a. payable annually on 30th June each year. These are secured by way of registered mortgage over the immovable properties of the Company i.e. Flat no. 34, Makani Manor Co-op. Housing Society Limited. situated at Peddar Road, at Mumbai, together with 10 shares of the said society and immovable properties of the company at Mathura Refinery situated at Mathura in the state of Uttar Pradesh.

 

H. Against hypothecation by way of first pari passu charge on Raw Materials, Stock-in Trade, Sundry Debtors, Outstanding monies, Receivables, Claims.

Contracts, Engagements, etc.

 

I. Against pledging of Oil Marketing Companies Government of India Special Bonds amounting to Rs. 31050.300 millions with CCIL and Bank Guarantees amounting to Rs. 15500.000 millions in favour of CCIL.

 

J. Security Details for OIDB Loans:

a) Rs. 2170.000 Millions - First Charge on the Facilities of Motor Spirit Quality Improvement Project at Barauni Refinery in Bihar.

b) Rs.8070.000 Millions - First charge on facilities for improvement of Diesel quality and Distillate yield (Hydrocracker) and expanded capacity of Haldia Refinery (from 6 MMTPA to 7.5 MMTPA) which includes Once through Hydrocracking Unit (OHCU). Hydrogen Unit, Sulphur Recovery Unit, revamped Crude Distillation Unit and related utilities and off-site facilities pertaining to Haldia Refinery in the state of West Bengal.

c) Rs. 22135.000 Millions - Second pari-passu charge on facilities for Naphtha Cracker with associated units viz. hydrogenation, butadiene extraction, benzene

extraction, etc and downstream polymer units like swing unit (LLDPE / HOPE), dedicated HOPE unit, Polypropylene unit and MEG unit and units like CDU/VDU, OHCU, DCU, DHDT relating to expansion of Panipat Refinery from 12MMTPA to 15 MMTPA in the state of Haryana.

d) Rs.13505.000 Millions - Residue upgradation and MS-HSD Quality improvement-Second pari-passu charge on facilities for Residue upgradation and MSHSD Quality improvement including units like VGO-HDT, ATF-Merox FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and SRU in respect of Gujarat Refinery in the state of Gujarat.

e) Rs.1270.000 Millions - First Charge on the Facilities of Motor Spirit Quality Improvement Project which includes installation of light Naptha isomerisation along with Benzene Saturation Unit and other Units like Feed Preparation Unit, Reaction Section etc and Diesel Hydro Teatment project at Bongaigaon

Refinery, Dhaligaon, Assam.

 

Unsecured Loans :

As on 31.03.2010

Rs. in Millions

As on 31.03.2009

Rs. in Millions

Public Deposits

0.000

3.500

Short Term Loans and Advances:

From Banks and Financial Institutions:

In Foreign Currency

US $ 2095 Million (2009 : US $ 1136 Million)

94059.300

57624.800

Interest accrued and due on above

10.900

0.000

Rupee Loans

65780.000

57624.800

Interest accrued and due

3.600

0.000

From others

 

 

Redeemable (NC) debentures / Commercial Papers

33750.000

9500.000

Inter corporate deposits

0.000

13905.000

Interest accrued and due on above

0.000

63.400

Other Loans and Advances:

From Banks/Financial Institutions:

Foreign Currency Loans

 US $ 331 Million (2009 : US $ 536.90 Million)

14871.900

27231.600

Senior Notes (Bank of America)

US $ 300 Million (2009: US $ 300 Million)

13470.000

15216.000

Rupee Loans

5000.000

5000.000

From Others:

 

 

Foreign Currency Bonds

US $500 Million (2009: US $ Nil)

22450.000

0.000

Rupee Loans

13342.300

25045.000

 

 

 

Total

262738.000

274069.300

  

 

Banking Relations :

--

 

 

Auditors :

Statutory Auditors

P.K.F. Sridhar and Santhanam, Mumbai

B.M Chatrath and Company, Kolkata

V.K. Dhingra and Company, New Delhi.

 

Branch Auditors

Shah Merchant and Associates, Ahmedabad

Price Patt and Company, Chennai

Saha Ganguli and Associates, Kolkata

Nandy Halder and Ganguli, Kolkata

M Choudhury and Company, Kolkata

Wahi and Gupta, New Delhi

O.P. Bagla and Company, New Delhi

S. Mohan and Company, New Delhi.

 

Cost Auditors

DGM and Associates, Kolkata.

V.J.Talati and Company , Maharashtra

Shri A. Madhavan, Chennai

L. Narayan and Company , Delhi

Bandyopadhyaya Bhaumik and Company , Kolkata

Wadhwa and Associates, Delhi

Shome and Banerjee, Kolkata

Musib and Company, Kolkata

Narasimha Murthy and Company , Hyderabad

K.G.Goyal and Associates, New Delhi

 

 

Joint Ventures :

·         IOT Infrastructure Energy Services Limited.

·         Lubrizol India Private Limited.

·         Petronet V.K. Limited.

·         IndianOil Petronas Private Limited.

·         Avi-Oil India Private Limited.

·         Petronet India Limited.

·         Petronet LNG Limited.

·         Green Gas Limited.

·         IndianOil Panipat Power Consortium Limited.

·         Petronet Cl Limited.

·         Indo Cat Private Limited.

·         IndianOil SkyTanking Limited.

·         Suntera Nigeria 205 Limited.

 

 

Associates :
  • Indo Mobil Limited
  • Petronet CTM Limited
  • Petronet CIPL Limited
  • Indian Oil TCG Petrochem Limited

 

 

Subsidiaries :
  • Indian Oil Blending Limited, Pir Pau, Trombay, Mumbai – 400074, Maharashtra, India

 

  • Indian Oil Mauritius Limited, Suite 619, Level 6, St. James Court Denis Street, Port Louis, Mauritius

      Line of Business: Terminating, Retailing and Aviation refueling

 

  • Chennai Petroleum Corporation Limited, 536, Anna Salai, Teynampet, Chennai – 600018, Tamil Nadu, India

      Line of Business: Refining

 

  • Bongaigaon Refinery and Petrochemicals Limited, P.O. Dhaligaon, District Bongaigaon, Assam – 783385, India

             Line of Business: Refining and Petrochemicals

 

  • IBP Company Limited, IBP House, 34-A, Nirmal Chandra Street, Kolkata – 700013, West Bengal, India

 

  • Lanka IOC Limited, World Trade Centre, 20th Floor, West Tower, Colombo, Sri Lanka

             Line of business: Retailing, Terminating and Bunkering

 

  • Indian Oil Tanking Limited

 

  • Indian Strategic Petroleum Reserves Limited

 

  • IOC Middle East FZE, LOB 14209, Jebel Ali Free Zone, P. O. Box 261338, Dubai, UAE

      Line of Business : Lube blending and marketing of petroleum products

 

 

Membership :

Confederation of Indian Industry

 

 

Group Companies :
  • Avi-Oil India Private Limited (Speciality lubricants)
  • Green Gas Limited (City gas distribution)
  • Indo Cat Private Limited (FCC Catalyst/additive)
  • IOT Infrastructure (Terminalling services)
  • Energy Services Limited
  • IndianOil Petronas Private Limited (Terminalling services and parallel marketing of LPG)
  • IndianOil Skytanking Limited (Aviation fuel facility projects.)
  • Lubrizol India Private Limited (Lube Additives)
  • Petronet LNG Limited (LNG Imports/distribution)
  • Petronet India Limited (Petroleum product pipeline projects through special purpose vehicles.)
  • Petronet VK Limited (Construct and operate a pipeline for transportation of petroleum products from Vadinar to Kandla.)
  • Suntera Nigeria 205 Limited (Oil exploration activities)

 

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2500000000

Equity Shares

Rs.10/- each

Rs.25000.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2427952482

Equity Shares

Rs.10/- each

Rs.24279.500 millions

 

 

 

 

 

Out of which:

 

Above includes, shares allotted as fully paid without payment being received in cash:

 

a) Pursuant to the Petroleum Companies Amalgamation Order, 1964: 3,76,49,700 Shares of Rs. 10 each

 

b) Pursuant to Gujarat Refinery Project Undertaking (Transfer) (Amendment) Order 1965: 1,00,00,000 Shares of

Rs. 10 each

 

c) 2,43,62,106 no. of Equity Shares of Rs. 10 each issued in June 2007 as fully paid up to the shareholders of erstwhile IBP Co. Limited. as per the Scheme of amalgamation.

 

d) 2,16.01,935 no. of Equity Shares of Rs. 10 each issued in May 2009 as fully paid up to the shareholders of erstwhile BRPL as per the Scheme of amalgamation.

 

e) Shares allotted as fully paid up Bonus Shares by Capitalisation of General Reserve/ Securities Premium: 2,28,02,71,241 shares of Rs. 10 each (This includes 1,21,39,76,241 shares of Rs. 10 each allotted in the ratio of 1:1 during the year).

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

24279.500

11923.700

11923.700

2] Share Application Money

0.000

216.000

0.000

3] Reserves & Surplus

481249.800

427842.100

398938.800

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

505529.300

439981.800

410862.500

LOAN FUNDS

 

 

 

1] Secured Loans

182924.500

175651.300

64157.800

2] Unsecured Loans

262738.000

274069.300

291073.900

TOTAL BORROWING

445662.500

449720.600

355231.700

DEFERRED TAX LIABILITIES

47561.100

54736.300

53848.200

Foreign Currency Monetary Item Translation Difference Account

0.000

50.800

0.000

 

 

 

 

TOTAL

998752.900

944489.500

819942.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

415810.700

347784.500

327718.200

Dismantled Capital Stores

417.800

259.100

175.700

Capital work-in-progress

212268.500

181140.500

91526.500

 

 

 

 

INVESTMENT

223702.500

322321.300

215357.800

Advances for Investments

0.000

0.000

105.000

Foreign Currency Monetary Item Translation Difference Account

1.000

0.000

0.000

Finance Lease Receivables

0.000

0.000

310.100

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
364040.800

251496.000

309414.800

 

Sundry Debtors
57992.800

59378.600

68192.300

 

Cash & Bank Balances
13151.100

7980.200

8244.300

 

Other Current Assets
11415.000

10515.800

7901.400

 

Loans & Advances
147288.300

118751.100

135560.200

Total Current Assets
593888.000

448121.700

529313.000

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors
197666.800

199747.900

193653.700

 

Other Current Liabilities
147134.900

129673.800

163886.000

 

Provisions
102715.600

26095.500

11729.900

Total Current Liabilities
447517.300

355517.200

345809.800

Net Current Assets
146370.700

92604.500

183503.200

 

 

 

 

MISCELLANEOUS EXPENSES

181.700

379.600

1245.900

 

 

 

 

TOTAL

998752.900

944489.500

819942.400

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

2492713.500

2627153.100

2244053.800

 

 

Other Income

234186.000

463722.800

247637.800

 

 

TOTAL                                     (A)

2726899.500

3090875.900

2491691.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Products and Crude for resale

1220841.500

1362457.100

1210566.100

 

 

Manufacturing, Administrative, Selling and Other Expenses

1366742.800

1602956.600

1151630.700

 

 

Duties

324.900

906.100

5312.400

 

 

Increase/(Decrease) in Finished Goods

(50442.500)

16745.600

(19580.900)

 

 

Income/ (Expenses) pertaining to prior years

835.900

(3813.900)

389.200

 

 

TOTAL                                     (B)

2538301.600

2979251.500

2348317.500

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

188597.900

11624.400

143374.100

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

15264.600

39521.400

15473.100

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

173333.300

72103.000

127901.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

32271.400

28817.100

27097.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

141061.900

43285.900

100804.000

 

 

 

 

 

Less

TAX                                                                  (I)

38856.400

13790.400

31178.200

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

102205.500

29495.500

69625.800

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

53050.800

53050.800

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Insurance reserve utilized

(218.000)

0.000

 

 

 

Proposed Dividend

31563.400

9104.800

NA

 

 

Corporate dividend tax on proposed dividend

5088.300

1547.400

 

 

 

Insurance reserve account

200.000

100.000

 

 

 

Bond redemption reserve

(2691.000)

5395.300

NA

 

 

General Reserve

121313.600

13348.000

NA

 

BALANCE CARRIED TO THE B/S

0.000

53050.800

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Crude Oil, LAB and Petroleum Products

136710.800

147855.700

114218.400

 

 

Income from Royalty

1.900

2.200

3.000

 

 

Income from Consultancy Services

77.100

52.400

40.100

 

 

Interest

5.800

93.300

99.800

 

 

Commodity Hedging

587.500

1602.900

161.300

 

 

Others

51.400

19.800

16.700

 

TOTAL EARNINGS

137434.500

149626.300

114539.300

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Crude Oil

1167672.600

1311505.000

 

 

Crude Oil

-

65.800

 

 

 

Additives

445.000

655.300

 

 

 

Capital Goods

6884.400

10310.900

 

 

 

Other Raw Materials

179.000

140.500

 

 

 

Revenue Stores, Component, Spare and Chemicals

4291.800

3259.000

 

 

TOTAL IMPORTS

11800.200

1325937.000

1065613.600

 

 

 

 

 

 

Earnings Per Share (Rs.)

42.10

12.15

58.39

 

QUARTERLY RESULTS (UNAUDITED)

(Rs. In Millions)

PARTICULARS

 

30.06.2010

 

30.09.2010

 

31.12.2010

31.03.2011

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

719244.800

773357.500

808973.300

987226.500

Total Expenditure

745901.300

704456.900

776056.200

9299399.800

PBIDT (Excl OI)

(26656.500)

68900.600

32917.100

57826.700

Other Income

8830.300

8618.800

7886.300

4800.300

Operating Profit

(17826.200)

77519.400

40803.400

62627.000

Interest

5711.700

5079.100

7233.000

8674.500

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

(23537.900)

72440.300

33570.400

53952.500

Depreciation

10346.000

11178.100

11777.600

12165.000

Profit Before Tax

(33883.900)

61262.200

21792.800

41787.500

Tax

0.000

8322.700

5445.200

2735.900

Provisions and Contingencies

0.000

0.000

0.000

0.000

Profit After Tax

(33883.900)

52939.500

16347.600

39051.600

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustment

0.000

0.000

0.000

0.000

Net Profit

(33883.900)

52939.500

16347.600

39051.600

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

3.75

0.95
2.79

 

 

 

 
 

Net Profit Margin

(PBT/Sales)

(%)

5.66

1.65
4.49

 

 

 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)

13.97

5.44
11.76

 

 

 

 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.28

0.10
0.25

 

 

 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 

1.77

1.83
1.71

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.33

1.26
1.53

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS :

(Rs. In Millions )

Particulars

31.03.2010

31.03.2009

31.03.2008

 

 

 

 

Total outstanding dues of micro enterprises

and small enterprises

160.900

220.300

165.400

Total outstanding dues of creditors other than

micro enterprises and small enterprises

197505.900

199527.600

193488.300

 

 

 

 

Total

197666.800

199747.900

193653.700

 

 

HISTORY:

 

Subject, India's largest commercial ISO-9002 certified enterprise and as a leading public sector enterprise of India, is the highest ranked Indian company in the prestigious Fortune 'Global 500' listing. IOCL is the 20th largest petroleum company in the world. Established in 1959 as Indian Oil Company Limited, Subject was formed in 1964 with the merger of Indian Refineries Limited (Estd. 1958). It was originally incorporated as IOCL in the year 1964. IndianOil and its subsidiaries account for 47% petroleum products market share, 40.4% refining capacity and 67% downstream sector pipelines capacity in India. IOCL a traditional manufacturer of refined petroleum products, the new building blocks for global ambition of the corporation are the Petrochemicals, Natural Gas, Exploration and Production, Overseas Business, Consultancy, Biofuels and Hydrogen, etc., The IndianOil Group of companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, i.e., 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Limited (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL). IndianOil reaches precious petroleum products to millions of people everyday through a countrywide network of about 32,500 sales points. They are backed for supplies by 170 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. The 10 refineries are located at Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat, Chennai, Narimanam, and Bongaigaon. Indian Oil Blending Limited a wholly owned subsidiary was merged with IndianOil on May 2006. IndianOil transferred its entire equity holding in Indian Strategic Petroleum Reserves Limited (ISPRL) to the Oil Industry Development Board, a government body functioning under the Ministry of Petroleum and Natural Gas. Consequently, ISPRL ceased to be a wholly owned subsidiary on May 2006. Formed another one subsidiary company viz., IOC Middle East FZE, in Jebel Ali Free Trade Zone Dubai, with the objective of marketing lubricants and other petroleum products in Middle East, Africa and CIS regions. A joint venture company Indo-Cat Private Limited was incorporated in June 2006. The company is a 50:50 venture between IndianOil and Intercat.Inc of USA for manufacture and marketing of FCC catalysts and additives. In 2007, the corporation received plenty of awards, Oil Industry Safety Directorate Awards, 'Most Admired Retailer of the Year' award, `CIO 100 Award 2007', SAP ACE - Awards for Customer Excellence and the only petroleum company as `The Most Trusted Brand' in ET's Brand Equity's annual survey. The SERVO acquires prestigious MAN Global approvals, IndianOil's RandD Centre gets special recognition for Bioremediation and also SERVO secures entry into NSF White Book - H1 Category during the period. As of November 2007, IndianOil, India's leading Fortune Global 500 Company has taken a significant step in promoting Bio-Diesel as a green fuel by entering into a Memorandum of Understanding (MoU) with the Government of Chattisgarh. IndianOil- RandD Centre Awarded the coveted WIPO GOLD MEDAL in 2008, IndianOil wins Retailer of the Year - Rural Impact Award and IndianOil's XtraPower wins Loyalty Summit Award in the same year 2008. As on January 2008, IndianOil and Hindustan Unilever Limited (HUL) signed an MoU here today for setting up Kwality Walls Kiosks at select IndianOil petrol stations across the country and also during the same month and year the corporation entered into a Memorandum of Understanding (MoU) with Transparency International India (TII) for implementing an Integrity Pact Programme focused on enhancing transparency in its business transactions, contracts and procurement processes. As of March 2008, a step towards ensuring the energy security and sustained economic growth of the nation, IndianOil, in its growth-oriented Memorandum of Understanding (MoU) with the Government of India for the year 2008-09, has focused its efforts on ushering in cleaner and sustainable energy resources. IndianOil's `LNG at Doorstep' facility launched in April 2008 at the Pen unit of HandR Johnson, the facility, first of its kind in the country, is primarily aimed at catering to the needs of Liquefied Natural Gas (LNG) customers who are not located on the main natural gas pipelines, the project covers Rs 290 millions. IndianOil has ambitious investment plans of Rs. 432500 millions in the next five years. Further new project of the corporation are as Panipat-Jalandhar LPG Pipeline cost of Rs.1867.200 millions, which will be commissioning on August 2008, Project consists of laying a 10" diameter 275 KM long LPG pipeline from Kohand (near Panipat refinery) in Haryana to Jalandhar via Nabha in Punjab. Another one new project namely Koyali -Ratlam Product Pipeline with cost of Rs. 3229.200 millions expected to be commissioning on October 2008. The pipeline will facilitate effective evacuation of products from Koyali refinery and ensure cost-effective and reliable transportation of products to Central India and northwest UP and the project consists of laying 16-inch diameter 274 km long product pipeline from Koyali refinery to Ratlam, where a new terminal is to be constructed on re-sitement basis. The corporation plans to expand its Panipat Refinery from 12 Mmtpa To 15 Mmtpa costing Rs. 806 millions on December 2008 and also in the same period plans to augmentation of Mundra - Panipat Crude Oil Pipeline with project cost of Rs. 2047.400 millions. Apart from the above said, some long term projects are awaiting to begin in future. All are under schemes for improvement and increased profitability through de bottlenecking / modifications / introduction of value added products are being taken up in addition to grassroots facilities. Project systems have been streamlined in line with ISO standards. IOCL, the flagship national oil company in the downstream sector is currently implementing a master plan envisaging by the year 2011-12 in petrochemicals, which covers Rs.300000 millions (US$ 6.8 billion) of investment. Through the world-scale Linear Alkyl Benzene (LAB) plant set up at its Gujarat Refinery, the corporation has already captured a significant market share in India besides exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman. IndianOil is also committed to the Global Compact Programme of the United Nations and endeavours to abide by the 10 principles of the programme initiative under CSR.

 

 

CHANGE IN PAID-UP SHARE CAPITAL:

 

Keeping  in  view  the aspirations of the  shareholders,  the  Corporation rewarded  its shareholders by issuance of bonus shares in the ratio of  1:1 i.e. one new bonus equity share of Rs.10 each for every one existing equity

share  of  Rs.10 each in November, 2009. Consequently,  the  paid-up  Share Capital  of  the  Corporation  has  increased  from  Rs.12139.800  millions  to Rs.24279.500 millions.

 

OPERATIONS:

 

Refineries:-

 

IndianOil's refineries achieved a crude throughput of 50.696 million tonnes during the year, as against 51.367 million tonnes during 2008-09, which was marginally  lower  due to planned shutdown of Gujarat, Mathura  and  Haldia Refineries  to  carry out revamp jobs and hook-up required for  MS  /   HSD Quality  Upgradation  as  per Bharat Stage-III / IV  norms.  Despite  major planned  Maintenance  and  Inspection  shutdowns,  the  Refineries   together achieved  capacity utilisation of 102% for the third consecutive  year  and the highest ever overall distillate yield of 75.3 wt%. The specific  energy consumption  for  all Refineries together was 62 MBN* which is  the  lowest ever  and much below the industry average of 68 MBN.  IndianOil  refineries also achieved record overall production of MS and ATF during the year.

 

In line with the Government's Auto Fuel Policy for supplying Bharat  Stage-IV  quality  MS  and HSD in 13 Indian cities, the  refineries  at  Panipat, Mathura  and  Haldia successfully produced and despatched the  products  in January  2010  itself  beating the deadline of  01.02.2010,  after commissioning  the respective Quality Improvement Projects. 

 

Implementation of Quality Improvement Projects at other refineries is  also in full swing and is expected to be commissioned progressively.

 

Pipelines:

 

During   the  year,  the  Pipelines  Division  registered  an   outstanding performance  of the highest-ever operational throughput of  65.007  million tonnes of crude oil and petroleum products as against 59.627 million tonnes in  the  previous  year. The Corporation owns  and  operates  the  largest network of crude oil and product pipelines in India. With the commissioning of  the Chennai-Bangalore Product Pipeline, the total network of  pipelines as on 31.03.2010 is 10,541 km with a capacity of 75.26 million tonnes.

 

Marketing:

 

During the year, IndianOil's Marketing Division sold 63.030 million  tonnes of  petroleum  products as against 60.887 million tonnes  in  the  previous year,  registering a growth of 3.52%. IndianOil maintained its lead in  the highly  competitive  bulk consumers segment, while the retail  segment  too registered  robust  growth. The Corporation commissioned  238  new  retail outlets  and  414 Kisan Seva Kendra (KSK) outlets during  the  year  taking their total tally to 18,643.

 

IndianOil continued to dominate the market in respect of branded fuels. The XTRAPOWER  usage  in value terms grew by 22%. To  further  consolidate  its leadership in the bulk consumers segment, the Corporation commissioned 258 new consumer pumps during the year taking their total to 7593.

 

IndianOil's  Indane  LPG brand earned the coveted  status  of  'Superbrand' during the year. On the lines of KSK, the Rajiv Gandhi Grameen LPG  Vitarak Yojana  was launched to penetrate rural markets. The Corporation  enrolled about  41  lakh new Indane customers and the cumulative  Indane  population reached  568 lakh. About 110 new Indane distributorships were  commissioned during  the  year, raising their total number to  5,095.  The  Corporation achieved  the highest-ever finished lube sales of 407 TMT during  the  year registering  a  growth of 8.8% over the previous year. Export  of  finished lubricants and base oil grew by 42% as compared to the previous year, which is an exceptional performance.

 

IndianOil  gained  sales  volume  and  new  business  and  consolidated   its leadership  position in the aviation fuel business with a market  share  of almost   63%.  The  Corporation  continued  to  meet  the  aviation   fuel requirements of the defence services, national carriers, scheduled  private airlines  and international airlines. IndianOil met the entire  requirement of aviation fuels of the Navy, Army and over 90% of Indian Air Force.

 

ASSAM OIL DIVISION:

 

The  Digboi  Refinery of Assam Oil Division (AOD) processed  0.600  million tonnes of crude oil during the year. AOD sold about 1.142 million tonnes of products and retained its position as the market leader in the North  East. Its  marketing  network  comprises  of  447  retail  outlets,  394  SKO/LDO dealerships  and  412 Indane distributors. AOD reaches Indane gas  to  3.09 million  customers  across 190 towns in the region.

 

RESEARCH and DEVELOPMENT:

 

IndianOil's   Research   and  Development  Centre   developed   181   product formulations  during the year. The year was marked with 65  approvals  from Original Equipment Manufacturers (OEMs) / Customers. The Centre carried out successful  plant trials of in-house developed catalysts in  the  Guwahati, Haldia  and CPCL Refineries. IndianOil received OIDB grant of Rs. 880.000  millions for  demonstration  of  a  novel  adsorption-based  fuel   desulphurisation technology  developed by its R and D Centre. It is the biggest ever  Government grant for demonstration of an indigenously developed technology.

 

In  alternative  fuels research, lifecycle assessment of the  use  of  bio-diesel  from  Jatropha  in State Transport  application  was  completed  in collaboration  with the National Renewable Energy Laboratory  (NREL),  USA. For  the  first  time, efficacy of  modified  OiliVorous-S  technology  for bioremediation  of  oily sludge wassuccessfully  demonstrated  for  marine application  for bio-remediation of oil spillage caused by a  sinking  ship (Black Rose) at Paradip Port.

 

BUSINESS DEVELOPMENT:

 

During  the  year 2009-10, Business Development  opportunities  across  the entire value chain of the hydrocarbon sector continued to receive  focussed attention  and  thrust. Strategic initiatives were  guided  by  IndianOil's longterm vision. The year gone by witnessed some major achievements.

 

Exploration and Production (E and P):

 

The  Corporation presently has participating interest in 11 blocks  within  the country, including two Coal Bed Methane (CBM) blocks, and nine The  R and D Centre  filed a total of 18 patents (including 3 in the US) out  of  which, eight patents (including two US patents) were granted. With this, IndianOil now  has a portfolio of 215 active patents. During the year, 15  MoUs  were signed  with  various  reputed  academic  and  research  organisations  for undertaking collaborative research.

 

A  special scheme has been introduced for offering sabbatical to  employees to  facilitate increased interaction and R and D collaboration  between  industry and academia, for which IndianOil's R and D Centre will be the nodal agency.

 

IBP DIVISION:

 

IBP Division, which comprises of Explosives and Cryogenics Business Groups, sold  57,645  tonnes  of explosives, registering a  growth  of  12.5%.  The Cryogenics  Group sold 16,366 Cryo containers and 55 industrial  containers during the year.

 

PROJECTS:

 

Project implementation is accorded the highest priority by the Corporation and best endeavours are made to avoid time and cost overruns. The status of the projects, is as under:

 

Completed Projects:-

 

* Naphtha Cracker and downstream Polymer Units at Panipat.

* Installation of facilities for Distillates Yield (Hydrocracker) at Haldia Refinery and capacity increase from 6 MMTPA to7.5 MMTPA:-

* MS/HSD Quality Upgradation Projects at various refineries.

* Bijwasan-Panipat Naphtha Pipeline

* Augmentation of Mundra-Panipat Pipeline from 6 to 9 MMTPA.

* Chennai-Bangalore Product Pipeline

* Dadri-Panipat R-LNG Spurline.

* Grassroots depot commissioned in Zewan, Srinagar.

* Retail Outlets Automation (Phase 1)

 

Ongoing Projects:

 

* 15 MMTPA grassroots refinery at Paradip, Orissa

* Panipat Refinery Additional Expansion Project

* Diesel Hydro Treatment Project at Bongaigaon Refinery

* Branch Pipeline from Viramgam to Kandla

* Paradip-Sambalpur-Raipur-Ranchi Pipeline

* Integrated crude oil handling facilities at Paradip

* New TOP at Jasidih, Jharkhand

* Retail Outlets Automation (Phase 2)

 

New Projects:

 

* Butadiene Extraction Unit project at Panipat

* Sanganer-Bijwasan Product Pipeline

* Paradip-Haldia-Durgapur LPG Pipeline

* Augmentation of Paradip-Haldia-Barauni Pipeline

 

Management's discussion and analysis

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

World Economy:

 

During the course of the year, international economic conditions  exhibited a marked improvement with the global economy getting into an early recovery mode.  The vital statistics of the engine of the world economy entered  the

positive  territory.  After June 2009, world trade flows  entered  into  an expansionary mode after declining for several months and GDP growth  turned positive.  A corrective policy action on both fiscal and monetary fronts  has

been  at  the very core of the recovery witnessed.  However,  the  recovery process  has  not been uniform and has varied in speed  and  strength  across countries  and regions, with emerging economies leading the way. While  the recovery has been early, it is still nascent and fragile and the key  risks and destabilising factors continue to exist. This calls for further reforms in  the financial markets and controlling fiscal deficits in the  light  of rising  commodity prices and high unemployment rates. The recent debt  crisis in  Greece has only highlighted the fragility of the recovery  process  and raised  questions  on  the credibility of the  economic  recovery  and  the stability of financial markets.

 

Indian Economy:

 

Indian  economy has been amongst the first economies to emerge out  of  the grips of recessionary forces in a incredible recovery led by the industrial and  services sectors. The acceleration in the growth of the  manufacturing sector  from  3.2%  recorded in 2008-09 to 10.8% during  2009-10  has  been particularly   remarkable,  especially  in  the  automobiles,  plastics   and chemicals   sub-sectors.   Besides,  the  turnaround   witnessed   in   the infrastructure  sectors such as electricity, telecom, coal, roads etc.  has also been particularly encouraging.

 

Trade flows, which had been one of the foremost channels of transmission of global  recession  to  India, returned to a more progressive  mode  in  the latter  part  of the year, after a prolonged period of  contraction.  Along with  this,  the  resurgence of portfolio capital  flows  since  the  first quarter  of   2009-10 with a net FII inflow of Rs.  11080.000 thousand millions after a stark reversal witnessed in 2008-09, when there was a net outflow of Rs. 4830.000 thousand millions, set the capital account back to  normal.  This was further bolstered by buoyant FDI inflows.

 

However,  poor  agriculture performance; surging food inflation  (which  is feared  to lead to a generalized increase in inflation), fiscal  imbalances and  innate  infrastructural weaknesses of the Indian economy are  seen  by experts  as the key risks to the robust growth and stability of the  Indian economy.

 

OUTLOOK:

 

Global Oil and Gas:-

 

The  slump  in  the  global  economy hit the  oil  sector  with  world  oil consumption  and supply falling consecutively in 2008 and 2009.  However,  as the world economy is now on the recovery path both supply and consumption are expected  to  grow. After exhibiting the highest intra-year  volatility  in 2008-09,  and touching a rock bottom of US$ 40/bbl in  2008,  international crude oil prices gradually firmed up since March 2009 and had risen by  69% on year-on-year basis in March 2010.

 

Owing  to  the  low oil prices in the beginning of the  year  and  slump  and uncertainty  in  demand  during  the year, many  international  oil  and  gas companies  cut  back their capital expenditure. This trend is  expected  to reverse now with the demand set to normalise and rising crude oil prices.

 

The  recent major success achieved by the North America companies in  shale gas  development,  led by technological breakthroughs which  have  made  it easier and cheaper to extract gas from shale, is likely to change the  demand

-supply dynamics in US and affect the LNG industry globally.

 

 

India Oil and Gas:

 

The  Indian oil and gas sector received a major impetus with domestic  oil  and gas supplies scaling up significantly (after years of stagnation) with  the start  of  supplies from Rajasthan and KG basin. During  2009-10,  crude  oil production  increased  by  3.5% and natural gas production  by  69.4%.  Given India's high dependence on imported hydrocarbons, this success story  needs to  recur  for  which policy, investments and  R and D  efforts  for  enhancing domestic supplies need to gear up. During the year, the VIII round of NELP and the IV round of Coal Bed  Methane (CBM)  were  held  with the participation of  62  companies,  including  10 foreign  companies.  For  NELP VIII, 76 bids for 36 blocks out  of  the  70 blocks  offered were received and for CBM IV, 26 bids for 8 blocks  out  of the 10 blocks offered were received.

 

Indian refineries have been performing well on the operational front with a capacity  utilization of 107.4% in 2009-10. On the financial  front,  Gross Refinery Margins have been weak due to middle distillate (accounting for  a bulk  of  Indian  refinery  output) cracks being  under  pressure  and  the consequent diminutive gap between these and crude. During the year, with  the improvement  in economic conditions, domestic consumption of  POL  products grew by 3.4% and exports also rose by 38% in terms of volume. Unlike  other parts  of the world, investments and capital expenditure in the oil  and  gas sector in India was not stalled in the wake of the global economic  crisis. The  three  upcoming  public sector refineries would  further  augment  the domestic  refining  capacity. Surplus refining capacity  coupled  with  the relatively  low capital and operating costs in India will help  position  the country as a refinery hub in Asia especially catering to the export  demand of high growth centres in South East Asia.

 

Under  the  pricing and subsidisation policy, domestic consumers  were  being protected  from  rising crude oil prices with an incomplete  pass  through. However,  an  expert committee under the Chairmanship of Dr.  Kirit  Parikh recommended  the complete decontrol of MS and HSD prices and  replacement  of oil bonds by cash subsidy for under recoveries on LPG and SKO. The Government of  India decided, on 25.06.2010, that the pricing of MS and HSD both  at the refinery gate and the retail level will be market determined.

 

While  MS has been fully decontrolled, the price of HSD is expected  to  be fully decontrolled in due course. This is a significant policy move,  which is expected to create a more efficient petroleum sector in the country.

 

Issues  such  as  CSR, sustainable development  and  R and D  are  increasingly getting  the attention of policy makers. Consequently, the central PSU  oil companies are required to give a weightage of 5% to each of these in  their MoU with the Ministry from the year 2010-11.

 

The  PSU  oil  marketing companies will be  partnering  the  government  to increase  availability  of  LPG in rural areas  through  the  Rajiv  Gandhi Grameen  LPG  Vitarak  Yojana  which was  launched  in  October,  2009.  In addition, the provision of community LPG kitchens through Corporate  Social Responsibility   funds  will  also make  a  significant  difference.   The implementation of  a  smart  card system, after  the  establishment  of  a nationwide  Unique Identification system, is now being increasingly  looked at as a solution to the inefficientsystem of price subsidies on SKO and LPG.

 

A  policy and regulatory framework has been evolving in the recent  years  to facilitate  the development of gas pipeline infrastructure,  especially  in the  context of increase in domestic gas production. During the  year,  the grant of infrastructure status to City Gas Distribution pipelines has  been a  positive  development  that is likely to spur  further  growth  of  this sector.

 

The  Ethanol-Blended  Petrol Programme has not yet  stabilised  as  ethanol supplies  have  not  been  adequate enough to meet  the  target  for  a  5% blending.  Further,  Oil  Marketing  Companies  have  been  facing  certain

constraints  with respect to free inter-state movement of ethanol  and  the  levy of duties on it by the state governments.

 

Another major policy development in the sector was the finalization of  the oil  sector  Vision - 2015 for 'Consumer Satisfaction and  Beyond'  by  the Ministry  of  Petroleum  and  Natural Gas. The  vision  with  regard  to  the customers  would cover four broad areas i.e. LPG, Kerosene, Auto Fuels  and CNG/PNG.

 

A   series   of  fuel  quality  improvement  projects   have   been   under implementation  in  the  sector to meet the various  fuel  emission  norms. During  the  year,  preparations were on for supplying BS-IV  fuels  in  13 Indian  cities.  The successful implementation of the same from  01.04.2010 with raised retail prices has been an encouraging development.

 

FINANCIAL REVIEW:

 

Turnover:-

 

The  turnover  of the Corporation (inclusive of excise duty) for  the  year ended  31.03.2010 was Rs. 2710740.000 millions as  compared  to  Rs.2853980.000 millions in the previous year. The total sales of products (including gas  and petrochemicals) for 2009-10 was 69.92 MMT as against 66.76 MMT during 2008-09.

 

 

Contingent Liabilities: (As 31.03.2010)

 

a)       Contingent Liabilities amounting to Rs. 69658.800 millions (2009: Rs. 88821.300 millions) are as under:

                                 i.      Rs. 2880.200 millions (2009: Rs. 11988.600 millions) being the demands raised by the Central Excise /Customs authorities.

                               ii.      Rs. 49835.100 millions (2009: Rs. 55553.900 millions) in respect of Sales Tax demands.

                              iii.      Rs. 6304.100 millions (2009: Rs. 6362.800 millions) including Rs. 4465.700 millions (2009: Rs.4666.000 millions) on account of Projects for which suits have been filed in the Courts or cases are lying with Arbitrators.

                              iv.      Rs. 6689.400 millions (2009: Rs. 9540.300 millions) in respect of Income Tax demands.

                                v.      Rs. 3950.000 millions (2009: Rs. 5375.700 millions) in respect of other claims.

 

The Company has not considered those disputed demands/claims as contingent liabilities, the outflow of resources for which would be remote.

 

FIXES ASSETS

 

·         Land-Freehold

·         Land-Leasehold

·         Buildings, Roads etc

·         Plant and Machinery

·         Transport Equipments

·         Furniture and Fixtures

·         Railway Sidings

·         Drainage, Sewage and

·         Water Supply System

 

 

AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31st MARCH 2011

 

      (Rs. In Millions)

Particulars

 

UNAUDITED RESULOTS FOR THREE MONTHS ENDED

AUDITED RESULTS FOR THE YEAR ENDED

 

 

 

31.03.2011

31.03.2011

Financial

 

 

 

Gross Turnover

 

938425.400

3287442.700

Less : Excise Duty

 

69624.200

257899.000

Net Sales

 

868801.200

3029543.700

 

 

 

 

Subsidy from Government of India (as per scheme)

 

4407.900

16766.600

Net Sales/ Income from Operations

 

873209.100

3046310.300

 

 

 

 

Grant from Government of India

 

109424.400

226048.400

 

 

 

 

Other Operating Income

 

4593.000

16173.200

 

 

 

 

Total Expenditure

 

 

 

Increase/(Decrease) in stocks

 

(20570.200)

(49729.300)

Purchase of Products and Crude for resale

 

46138.600

1556481.000

Consumption of Raw Materials

 

405013.100

1430003.200

Employee Cost

 

24428.300

64355.500

Depreciation

 

12165.000

454667.00

Other Expenditure

 

57390.000

154703.800

Total Expenditure

 

941564.800

3201280.900

 

 

 

 

Profit from Operations before Other Income and Interest

 

45661.700

87251.000

 

 

 

 

Other Income

 

4800.300

30405.900

 

 

 

 

Profit before Interest

 

50462.00

117656.900

 

 

 

 

Interest

 

8674.500

16503.800

 

 

 

 

Profit Before Tax

 

41787.500

90958.600

Provision for taxation

 

2735.900

16503.800