Indian Oil Corporation Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2022

Notes to Standalone Financial Results:



1. The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their respective meetings held on 17th May 2022.



2. The Financial Results have been audited by the Statutory Auditors as required under Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.



3. Average Gross Refining Margin (GRM) for the year April – March 2022 is $11.25 per bbl (April – March 2021: $5.64 per bbl). The core GRM or the current price GRM for the year April – March 2022 after offsetting inventory loss/ gain comes to $7.61 per bbl.



4. For computing earnings per share, shares held under “IOC Shares Trust” of face value Rs.233.12 crore has been excluded from paid–up Equity Share Capital.



5. Free LPG connections are issued by Oil Marketing Companies (OMCs) to the women belonging to the Below Poverty Line (BPL) households through Government approved “Pradhan Mantri Ujjwala Yojana (PMUY)” scheme. As per the scheme, OMCs would provide an option for EMI/ Loans towards cost of burner and 1st refill to the PMUY consumers. The loan amount is to be recovered from the subsidy amount payable by the government to the customers on each refill sale. The amount of outstanding loan to PMUY consumers as at 31st March 2022 is Rs.2,770.67 crore (2021: Rs.3,022.58 crore) (net of recovery through subsidy) and provision for doubtful loans is Rs.601.46 crore (2020: Rs.901.45 crore) based on Expected Credit Loss (ECL) Model/ Experience Factor. Additionally, on account of decline in subsidy amount of LPG cylinders in current year, the Company has remeasured the gross carrying amount of PMUY loan as at Balance Sheet date based on revised estimated future contractual cash flows resulting in reduction in PMUY loans by Rs.489.00 crore (Rs.847.08 crore), which has been charged to the Statement of Profit and Loss.



6. During the current year, the Company has contributed Rs.767.13 crore in respect of services prior to 01.01.2007 for employees on-roll as on that date based on actuarial certificate and as approved by Board. The contribution to the extent of Rs.643.89 has been adjusted in Other Comprehensive Income against amount shown as recoverable advance towards PRMB trust in earlier years.



7. Due to Outbreak of COVID-19 pandemic and consequent national lockdown, the operations of the Company during FY 2020-21 were considerably affected due to demand reduction. The demand for the petroleum products resumed to near normal levels from second half of that year and impact of the pandemic in current financial year is minimal.



8. The figure for the quarter ended 31st March 2022 represent the derived figures between the audited figures in respect of the current full financial year ended 31st March 2022 and the published year-to-date reviewed figures up to 31st December 2021, being the date of the end of the 3rd quarter of the current financial year.



9. The Company hereby declares that the Auditors have issued Audit Report for Standalone Financial Statements with unmodified opinion for the year ended 31st March 2022.



10. The Board of Directors in this meeting recommended issue of bonus equity shares in the ratio of one equity share of Rs.10 each for every two equity shares of Rs.10 each held, subject to approval by the members of the Company. The bonus shares, upon approval, will also be eligible for the final dividend.



11. The Board of Directors in this meeting also recommended the final dividend of Rs.3.60 per equity share having face value of Rs.10/- (pre-bonus), which translates into final dividend of Rs.2.40 per equity share having face value of Rs.10/- (post-bonus) for FY 2021-22, subject to approval by the members of the Company. This is in addition to the interim dividend of Rs.9.00 per equity share (pre-bonus) paid during the year by the Company.



12. Figures for the previous periods have been regrouped to conform to the figures of the current period.