Indian Oil Corporation Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

Notes to Standalone Financial Results:

1) The above results have been reviewed and recommended by the Audit Committee in its meeting held on 29th January 2019 and approved by the Board of Directors at its meetings held on 30th January 2019.

2) The Financial Results have been reviewed by the Statutory Auditors as required under regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3) Average Gross Refining Margin for the period April - December 2018 is $ 5.83 per bbl (April - December 2017: $ 8.28 per bbl).

4) The company has accounted for Budgetary Support of Rs. 3,533.80 crore in April - December 2018 [April – December 2017: Rs.2,249.92 crore] as Revenue Grants on sale of SKO (PDS) included in Revenue from operations and no under-realization is suffered by the Company on this account.

5) Goods and Services Tax (GST) has been implemented w.e.f 01.07.2017 wherein some of the petroleum products are still outside its ambit. Accordingly, GST is being levied on some products as against Excise Duty applicable hitherto. Since, excise duty is included in revenue and GST is not included in revenue, thus to ensure comparability, revenue excluding excise duty on applicable products are given below:

` in crore

Quarter ended Nine Months ended Year Ended

31.12.2018 30.09.2018 31.12.2017 31.12.2018 31.12.2017 31.03.2018

Revenue from operations (gross) 1,60,137.96 1,51,566.60 1,30,875.98 4,61,451.44 3,69,711.49 5,06,427.59

Less: Excise Duty - - - - 1,786.60 1,786.60

Net comparable revenue 1,60,137.96 1,51,566.60 1,30,875.98 4,61,451.44 3,67,924.89 5,04,640.99

6) Shares held under “IOC Shares Trust” of face value Rs.233.12 crore (pre bonus Rs.116.56 crore) has been netted from paid–up Equity Share Capital. The net share capital is considered for computing earnings per share. Further, pursuant to issue of bonus shares in the ratio of one equity share for every one share held in March 2018, Earning Per Share for the quarter and Nine months ended on 31st December 2017 have been restated. Standalone EPS without adjusting for bonus shares for the quarter and nine months ended on 30th December 2017 would have been Rs. 16.63 per share and Rs.34.03 per share respectively.

7) Board of Directors in their meeting dated 13.12.2018 had:

a) Approved buyback of equity shares of the Company not exceeding 29,76,51,006 equity shares being approximately 3.06 % of the total paid up equity share capital of the company at a price of Rs.149 per equity share from all equity shareholders of the company, as on record date, on a proportionate basis through a “Tender Offer” in cash for aggregate consideration not exceeding Rs.4,435 crore. The process of buyback is likely to be completed in February 2019.

b) Declared an interim dividend of Rs.6.75 per equity share (face value: Rs.10/-per equity share). This dividend was paid in the month of December 2018.

8) Indian Accounting Standard (Ind-AS)-115 “Revenue from Contracts with Customers” became effective from 01.04.2018 and the company has adopted the same using cumulative catch-up transition method. This adoption has reduced Revenue from Operation for the current period by Rs.18.67 crore.

9) During the period April - December 2018, company has settled its liability for entry tax in the State of Bihar consequent to the order of Commercial Tax Tribunal, Patna (on direction by Hon’ble Supreme Court) and accordingly, an amount of Rs.1,155.02 crore, being provision no more required, has been written back and included in Revenue from Operations.

10) Expenses for the period April - December 2018 includes:

a) Employee benefit expenses of Rs. 1,266.52 crore towards one time contribution for superannuation benefit scheme for past periods.

b) Foreign exchange loss of Rs.2,340.45 crore included in Other Expenses [April - December 2017, there was Foreign exchange gain of Rs.980.07 crore which was included in Other Income].

11) Company has applied hedge accounting for designated derivative contracts w.e.f 01.04.2018 as per Ind-AS 109 “Financial Instruments”. Due to this, gain amounting to Rs.20.08 crore has been accounted in Other Comprehensive income which will be recycled to Statement of Profit and Loss in subsequent periods on settlement of respective contracts.

12) Figures for the previous periods have been regrouped/reclassified to conform to the figures of the current periods.