MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	INDIAN OIL CORPORATION LIMITED	Principal Name 1	Mr. Sarthak Behuria
Status	Good	Principal Name 2	Mr. Brij Mohan Bansal
		Registration #	11-11388
Street Address	Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400051, Maharashtra
Established Date	30.06.1959	SIC Code	--
Telephone#	91–22–26423272/ 26443880/ 26400926/ 26427363 Extn. 7616/ 7528/ 26441825/ 30/ 31	Business Style 1	Manufacturing and Selling of Petroleum Products.
Fax #	91–22–26443880/ 26425903/ 26400606	Business Style 2	--
Homepage	http://www.iocl.com	Product Name 1	Auto Gas
# of employees	31945	Product Name 2	Bitumen
Paid up capital	Rs. 24,279,500,000	Product Name 3	--
Shareholders	Central Government / State Government(s) (78.92 %)	Banking	State Bank of India United Bank of India
Public Limited Corp.	Yes	Business Period	52 years
IPO	--	International Ins.	-
Public Enterprise	--	Rating	Aa (74)
Related Company
Relation - Subsidiaries	Country	Company Name	Indian Oil Blending Limited
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	229,847,200,000	Current Liabilities	447,517,300,000
Inventories	364,040,800,000	Long-term Liabilities	445,662,500,000
Fixed Assets	415,810,700,000	Other Liabilities	47,561,100,000
Deferred Assets	--	Total Liabilities	940,740,900,000
Invest& other Assets	436,571,500,000	Retained Earnings	481,249,800,000
		Net Worth	505,529,300,000
Total Assets	1,446,270,200,000	Total Liab. & Equity	1,446,270,200,000
Total Assets (Previous Year)	1,300,006,700,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	249,271,350,000	Net Profit	102,205,500,000
Sales(Previous yr)	262,715,310,000	Net Profit(Prev.yr)	29,495,500,000

MIRA INFORM REPORT

Report Date :

26.02.2011

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

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.

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.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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 31.12.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	1,916,155,710	78.92
Sub Total	1,916,155,710	78.92
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1,916,155,710	78.92
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	39584776	1.63
Financial Institutions / Banks	2678778	0.11
Insurance Companies	74422012	3.07
Foreign Institutional Investors	26801387	1.10
Sub Total	143486953	5.91
(2) Non-Institutions
Bodies Corporate	231354763	9.53
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	70678422	2.91
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	3008089	0.12
Any Others (Specify)	63268545	2.61
Non Resident Indians	1162173	0.05
Trusts	58500096	2.41
Clearing Members	865374	0.04
Foreign Nationals	456	-
Custodian	40446	-
Governor of Gujarat	2,700,000	0.11
Sub Total	368309819	15.17
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

Bankers :

State Bank of India
United Bank of India
HDFC Bank Limited

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions
Bonds: Non-Convertible Redeemable Bonds - Series - V A	2212.000
Non-Convertible Redeemable Bonds - Series - VI B	10000.000
Non-Convertible Redeemable Bonds - Series - VII B C	5000.000
Non-Convertible Redeemable Bonds - Series - VIII A D	4300.000
Non-Convertible Redeemable Bonds - Series - VIII B E	10700.000
Non-Convertible Redeemable Bonds - Series - IX F	16000.000
Non-Convertible Redeemable Bonds - Series – IX G	20000.000
Loans and Advances from Banks: G Working Capital Demand Loan	47500.000
Interest accrued and due on above	62.500
Foreign Currency Loans US $ Nil (2009 : US $ 16.55 million)	0.000
Loans and Advances from Others: Loan through Collateralized Borrowings and Lending Obligation (CBLO) of Clearing Corporation of India Limited (CCIL)H	20000.000
Oil Industry Development Board (OIDB)	47150.000
Total	182924.500

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
Public Deposits	0.000
Short Term Loans and Advances: From Banks and Financial Institutions: In Foreign Currency US $ 2095 Million (2009 : US $ 1136 Million)	94059.300
Interest accrued and due on above	10.900
Rupee Loans	65780.000
Interest accrued and due	3.600
From others
Redeemable (NC) debentures / Commercial Papers	33750.000
Inter corporate deposits	0.000
Interest accrued and due on above	0.000
Other Loans and Advances: From Banks/Financial Institutions: Foreign Currency Loans US $ 331 Million (2009 : US $ 536.90 Million)	14871.900
Senior Notes (Bank of America) US $ 300 Million (2009: US $ 300 Million)	13470.000
Rupee Loans	5000.000
From Others:
Foreign Currency Bonds US $500 Million (2009: US $ Nil)	22450.000
Rupee Loans	13342.300
Total	262738.000

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 :

1) IOT Infrastructure Energy Services Limited.

2) Lubrizol India Private Limited.

3) Petronet V.K. Limited.

4) IndianOil Petronas Private Limited.

5) Avi-Oil India Private Limited.

6) Petronet India Limited.

7) Petronet LNG Limited.

8) Green Gas Limited.

9) IndianOil Panipat Power Consortium Limited.

10) Petronet Cl Limited.

11) Indo Cat Private Limited.

12) IndianOil SkyTanking Limited.

13) 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	196810.300	334079.900
	Other Current Liabilities	147134.900	132611.400	0.000
	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)

PARTICULARS	30.06.2010 (Rs. In Millions)	30.09.2010 (Rs. In Millions)	31.12.2010 (Rs. In Millions)
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	719244.800	773357.500	808973.300
Total Expenditure	745901.300	704456.900	776056.200
PBIDT (Excl OI)	(26656.500)	68900.600	32917.100
Other Income	8830.300	8618.800	7886.300
Operating Profit	(17826.200)	77519.400	40803.400
Interest	5711.700	5079.100	7233.000
Exceptional Items	0.000	0.000	0.000
PBDT	(23537.900)	72440.300	33570.400
Depreciation	10346.000	11178.100	11777.600
Profit Before Tax	(33883.900)	61262.200	21792.800
Tax	0.000	8322.700	5445.200
Provisions and Contingencies	0.000	0.000	0.000
Profit After Tax	(33883.900)	52939.500	16347.600
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustment	0.000	0.000	0.000
Net Profit	(33883.900)	52939.500	16347.600

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

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

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2010

(Rs. In Millions)

Particulars			Quarter ended 30.06.2010 (Unaudited)

Financial
Gross Turnover			779654.4000
Less : Excise Duty			66903.700
Net Sales			712750.700

Subsidy from Government of India (as per scheme)			3975.900
Net Sales/ Income from Operations			716726.600

Grant from Government of India			0.000

Other Operating Income			2518.200

Total Expenditure
Increase/(Decrease) in stocks			(1660.000)
Purchase of Products and Crude for resale			361367.200
Consumption of Raw Materials			347950.400
Employee Cost			9831.500
Depreciation			10346.000
Other Expenditure			28412.200
Total Expenditure			756247.300

Profit from Operations before Other Income and Interest			(37002.500)

Other Income			8830.300

Profit before Interest			(28172.200)

Interest			5711.700

Profit Before Tax			(33883.900)
Provision for taxation			0.000

Net Profit			(33883.900)

Paid –up Equity Share Capital (Face value Rs.10/- each)			24279.500
Reserves excluding revaluation reserves			--
Earnings per share (Rs.) (Basic and Diluted) (Face value – Rs.10 each)			(13.96)

Aggregating of Public Shareholding
Number of Shares			511796272
Percentage of Shareholding (%)			21.08

Promoters And Promoter Group Shareholding a) Pledged/ Encumbered
-Number of Shares			--
-% of total promoters and promoter group shareholding			--
-% of total shares capital of the Company			--
b) Non Encumbered
- Number of Shares			1916155710
-% of total promoters and promoter group shareholding			100.000
-% of total shares capital of the Company			78.92

Physical (In MMT)
Product Sales
- Domestic			17.254
- Export			1.058
Refineries Throughput			13.278
Pipelines Throughput			16.489

Notes:

The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at its meeting held on 24.07.2010.
The financial results have been reviewed by the Statutory Auditors as required under clause 41 of the listing agreement.
Average Gross Refining Margins for the period April-June 2010 was US $ 3.00 per bbl (April-June 2009: US $ 7.36 per bbl).
a) In line with the scheme formulated by petroleum Planning and Analysis Cell (PPAC), the Company has received discounts on Crude Oil/Products purchased from ONGC/GAIL/OIL/CPCL of Rs. 36712.600 millions towards under recovery suffered during the quarter on sale of MS, HSO, SKO (P05) and LPG (Domestic) (April-June 2009: Rs, 2291.000 millions on safe of MS and HSD) and the same has been adjusted against the purchase cost.

b) Consequent to non-revision of retail selling prices In line with International prices, the Company has suffered net under-realization of Rs. 73425.900 millions on sale of MS. HSO, SKO (POS) and LPG (Domestic) (April-June 2009: Rs. 29610.800 millions on sale of SKO (PDS) and LPG (Domestlc)1. MoP and NG has decided the pricing of MS to be market-determined w.e.f 26.06.2010.

Other Expenditure’ for the period April-June 2010 Includes Rs. 4674.700 millions towards foreign exchange loss (Re. 2911.800 millions on crude oil liabilities and Re. 1762.900 millions on other items). During April-June 2009, there was a foreign exchange gain of Rs. 6627.900 millions (Rs. 2623.800 millions on crude oil liabilities and Rs. 3904.100 millions on other items) that was accounted as ‘Other Operating Income’,
Pursuant to orders pronounced by the Honourable Supreme / various High Coutts in the matter of Entry Tax on crude oil, HSD and lubricants, and as advised, the Company has not provided for entry tax amounting to Rs. 40975.300 millions (2009-10: Rs. 37431.900 millions) including Rs. 3543.400 millions for the quarter ended 30.06.2010 in respect of Mathura and Panipat Refineries, Mundra-Panipat and Salaya-Mathura Pipelines and Asaouti Iube Blending plant. Pending final disposal of the matter by the Honourabie Supreme / various High Courts, entry tax already paid / deposited / provided for at various units has not been considered for write back,
Pending finalization of pay revision w.e.f 01.01.2007 In case of Workmen, provision is being continued on estimated basis.
Impact, ii any, on account of impairment of assets will be reviewed at the year end.
Accounting policy regarding expenditure Incurred during construction period of projects on assets not owned by company has been revised based on opinion of expert advisory committee of ICAI resulting In expenditure Incurred being charged to revenue upon incurrence instead of charging on capitalisation of the projects, impact of this change on these quarterly results is not material.
Due to uncertainty in estimation of profit for the year pending finalisations of compensation mechanism and extent thereof for under recoveries suffered on sale of MS. HSO, SKO(PDS) and IPG (Domestic) no provision has been made for current tax and deferred tax for the current quarter.
Consequent to issuance of bonus shares in the ratio of 1:1 in November 2009, the earning per share for June 2009 quarter has been adjusted accordingly.
Company has received 268 complaints from investors during the quarter which were oil resolved. No complaint was pending at the beginning or end of the quarter.
Figures for the previous period have been regrouped wherever necessary.

Segment Wise Results

Rs. In Millions

		Quarter ended 30.06.2010 (Unaudited)
1.	Segment revenue
	a) sale of petroleum products	671394.400
	b) sale of petrochemicals	8444.600
	c) other business activities	54252.200
	Sub – total	734091.200
	Less: inter-segment revenue	14846.400
	Total Revenue	719244.800

2.	Segment Results:
	a) profit before tax, interest income, interest expense and dividend from each segment
	i) sale of petroleum products	(29592.800)
	ii) sale of petrochemicals	(4839.900)
	iii) other business activities	74.600
	Sub – total	(34358.100)
	b) interest expenditure	5711.700
	c) other un-allocable expenditure net of un-allocable income	(6185.900)

	Profit before tax (a-b-c)	(33883.900)

3.	Capital employed
	(Segment assets – segment liabilities)
	a) sale of petroleum products	607945.800
	b) sale of petrochemicals	170049.100
	c) other business activities	3590.100
	d) others (corporate)	(309941.000)
	Total	471644.000

Notes:

Segment revenue comprises turnover (net of excise duties), subsidy and grants received from government on India and other operating income.
Other business segment comprises, sale of imported crude oil, sale of gas, oil and gas exploration activities, explosives and cryogenic business and wind mill power generation.
Figures for the previous periods have been re-arranged wherever necessary.

WEBSITE DETAILS

PROFILE:

Subject is India's largest company by sales with a turnover of Rs. 2710740.000 millions and profit of Rs. 102210.000 millions for the year 2009-10.

IndianOil is the highest ranked Indian company in the latest Fortune ‘Global 500’ listings, ranked at the 125th position. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with.

In this section, read about IndianOil’s business and its spread across the country and abroad. You can also know about IndianOil's current financial performance, special initiatives and recognitions and awards that have come its way.

Corporate Overview:

IndianOil is India’s flagship national oil company with business interests straddling the entire hydrocarbon value chain – from refining, pipeline transportation and marketing of petroleum products to exploration and production of crude oil and gas, marketing of natural gas, and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 125th position in the year 2010.

With over 34,000-strong workforce, IndianOil has been helping to meet India’s energy demands for over half a century. With a corporate vision to be the Energy of India, IndianOil closed the year 2009-10 with a sales turnover of Rs. 2710740.000 millions and profits of Rs. 102210.000 millions.

At IndianOil, the operations are strategically structured along business verticals - Refineries, Pipelines, Marketing, R and D Centre and Business Development – E and P, Petrochemicals and Natural Gas. To achieve the next level of growth, IndianOil is currently forging ahead on a well laid-out road map through vertical integration— upstream into oil exploration and production (E and P) and downstream into petrochemicals – and diversification into natural gas marketing and alternative energy, besides globalisation of its downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), IndianOil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.

With facilities at multiple locations and ever-expanding market opportunities, IndianOil is poised to become an integrated energy company with steady forays into Oil Exploration and Production, Petrochemicals and Renewable Energy.

Reach and Network

IndianOil and its subsidiary (CPCL) account for over 48% petroleum products market share, 34% national refining capacity and 71% downstream sector pipelines capacity in India.

With a steady aim of maintaining its position as a market leader and providing best quality products and services, IndianOil is currently investing Rs. 470000.000 millions in a host of projects for augmentation of refining and pipelines capacities, expansion of marketing infrastructure and product quality upgradation.

The IndianOil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 62.7 million metric tonnes per annum (MMTPA, .i.e. 1.25 million barrels per day). IndianOil’s cross-country network of crude oil and product pipelines, spanning 10,899 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner.

It has a portfolio of powerful and much-loved energy brands that includes Indane LPGas, servo lubricants, XtraPremium petrol, XtraMile diesel, etc. Validating the trust of 56.8 million households, Indane has earned the coveted status of ‘Superbrand’ in the year 2009.

IndianOil has a keen customer focus and a formidable network of customer touch-points dotting the landscape across urban and rural India. It has 18,643 petrol and diesel stations, including 2,947 Kisan Seva Kendras (KSKs) in the rural markets. With a countrywide network of 35,600 sales points, backed for supplies by 140 bulk storage terminals and depots, 98 aviation fuel stations and 88 LPGas bottling plants, IndianOil services every nook and corner of the country. Indane is present in almost 2764 markets through a network of 5095 distributors. About 7,593 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.

IndianOil’s ISO-9002 certified Aviation Service commands an enviable 63% market share in aviation fuel business, successfully servicing the demands of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys a 65% share of the bulk consumer, industrial, agricultural and marine sectors.

Innovation is key

IndianOil has a sprawling world-class R and D Centre that is perhaps Asia's finest. it conducts pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels, and is also the nodal

agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country. The Centre holds 215 active patents, including 109 international patents.

Some of the in-house technologies and catalysts developed by IndianOil are the INDMAX technology (for maximising LPG as yield), Olivorus–S bio-remediation technology (extended to marine applications too), DHDS catalyst, a special Indicat catalyst for Bharat Stage-IV compliant Diesel, IndVi catalyst for improved distillate yield and FCC throughput, and adsorbent based deep desulphurisation process for gasoline and diesel streams.

Redefining the horizon

In Petrochemicals, IndianOil is investing substantially during the year 2011-12. It offers a full slate of products including Linear Alkyl Benzene (LAB), Purified Terephthallic Acid (PTA), and an extensive range of polymers.

IndianOil holds a significant market share of LAB in India and exports to 19 countries. A state-of-the-art 120,000 tonnes per annum Styrene Butadiene Rubber (SBR) unit is underway at Panipat. The SBR unit will further strengthen IndianOil’s presence in the speciality petrochemicals sector.

In Exploration and Production, IndianOil’s domestic portfolio includes nine oil and gas blocks and two Coal Bed Methane blocks. The overseas portfolio includes nine blocks spread across Libya, Iran, Gabon, Nigeria, Timor-Leste and Yemen. Exploration activities are at various stages of progress. In addition, as part of consortium, IndianOil has been awarded Project -1 in the Carabobo heavy oil region of Venezuela. To boost E and P activities, IndianOil has incorporated Ind-OIL Overseas Limited. – a special purpose vehicle for acquisition of overseas E and P assets – in consortium with Oil India Limited.

Natural Gas marketing is another thrust area for IndianOil with special focus on City Gas Distribution (CGD) business. The Corporation has entered into franchise agreements with several CGD players to market Compressed Natural Gas through its retail outlets. IndianOil’s joint venture with GAIL India Limited. - Green Gas Limited. – has been authorised to take up city gas distribution at Agra. A long term gas supply agreement has been signed with NTPC.

IndianOil has signed an MoU with Tamil Nadu Industrial Development Corporation Limited. (TIDCO) to set up a 2.5 million tonnes per annum LNG import and re-gasification terminal and gas-based power plants at Ennore, and gas pipelines for distribution in the state of Tamil Nadu, at an estimated investment of around Rs.100000.000 Millions.

Venturing into alternative fuels

IndianOiI has forayed into alternative energy options such as wind, solar, bio-fuels and nuclear power. A 21 MW wind power project is operational in the Kutch district of Gujarat and the cumulative power generation from the 14 wind turbine generators has crossed 6.6 crore units (KW/Hr) since commissioning in January 2009. The solar power initiative is being spearheaded on a pilot basis in Orissa, Karnataka and the Northeast and an all-India phased roll out is underway. Solar products such as solar lanterns and torches are being sold through the Retail Outlets in rural and urban areas. With a view to investing in the nuclear energy sector in the country, IndianOil has entered into an agreement with the Nuclear Power Corporation of India Limited.

IndianOil has the largest captive plantation – over 1,000 hectares – for bio-fuel production in India which is underway in Chattisgarh and Madhya Pradesh, generating rural employment of over 1.4 lakh man-days. To straddle the complete bio-fuel value chain, IndianOil has formed a joint venture with the Chhattisgarh Renewable Development Authority. IndianOil CREDA Biofuels Limited. has been formed to carry out farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and allied products and services in Chattisarh. In Uttar Pradesh, IndianOil is establishing a model value chain for the production of bio-diesel. A MoU for collaborating on commercial production of bio-diesel from algae has also been signed with PA LLC.

IndianOil. The Energy of India

As a leading public sector enterprise of India, IndianOil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products and services for the benefit of its consumers.

PRESS RELEASES:

State-owned oil refining and marketing firm IndianOil (IOC) has invited applications from merchant bankers for managing its share sale.

IOC’s follow-on public offer (FPO), under which the government aims to sell a 10% stake in the company, could be the biggest till March.

At current prices, the issue size could be around Rs.20,000 crore.

“We have asked for request for qualification applications for the appointment of book running lead managers,” said chairman B. M. Bansal.

The company will issue new shares equivalent to 10% of its post-issue capital. The last date for submitting the proposals is 12 November. Technical bids will open on the same date.

IOC has a refining capacity of 51.2 million tonnes (mt) and is the leading fuel retailer. Finance minister Pranab Mukherjee has repeatedly said the government wants to bring down India’s fiscal deficit. Enhanced disinvestment proceeds would give it breathing space to step up expenses without resorting to more borrowings, already at a record.

While the Congress-led United Progressive Alliance (UPA) government decided to decontrol petrol prices on 25 June, state-owned oil marketers such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL) still sell diesel at the government mandated price.

Oil companies and the government lose thousands of crores of rupees every year from subsidizing fuel prices. The government, however, is not considering freeing diesel prices yet as that would push up retail prices and the already high inflation rate, oil secretary S. Sundareshan said last week at the Economic Editors’ Conference. Wholesale price inflation rose to 8.62% in September from 8.5% in August.

Diesel deregulation is “not possible with the current prices ... diesel deregulation at this juncture will lead to price increase and it is unreasonable to expect it at this juncture,” Sundareshan said. The government expects the cost of selling fuel below cost in the current financial year to be around Rs.52,000 crore. IOC, BPCL and HPCL lost Rs.31,367 crore in revenue in the first half of the financial year on selling diesel, domestic liquefied petroleum gas (LPG) and kerosene at a loss.

Of this revenue loss, upstream oil firms, Oil and Natural Gas Corp. Ltd (ONGC), GAIL India and Oil India Ltd (OIL), will chip in Rs.10,456 crore and around Rs.10,000 crore would come from the government by way of cash compensation. Earlier this year, the government said it would raise Rs.40,000 crore in 2010-11 by selling shares of public sector companies.

Confident that there’s enough liquidity in the market to absorb one big public issue a month, the government plans to sell shares of three large public sector companies—IOC, Steel Authority of India Ltd and ONGC—between January and March. The government proposes to sell shares in seven more companies until March.

Power Grid Corp. of India Ltd’s share sale will come up after Diwali. Public issues of Manganese Ore (India) Ltd, Shipping Corp. of India Ltd and Hindustan Copper Ltd are in the pipeline till December. IOC closed 0.02% up at Rs.422.70 on the Bombay Stock Exchange on Tuesday. The Sensex closed nearly flat at 20,345.69 points.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.73.24
Euro	1	Rs.62.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		74

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
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
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

364040.800

57992.800

13151.100

11415.000

147288.300

593888.000

197666.800

147134.900

102715.600

447517.300

146370.700

2.79

4.49

11.76

0.25

1.71

1.53

Unit