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Indian Oil Corporation Ltd

BSE: 530965 | NSE: IOC ISIN: INE242A01010
Market Cap: [Rs.Cr.] 1,02,180.28 Face Value: [Rs.] 10
Industry: Refineries

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Auditor's Report
Auditors' Report


Report on the Financial Statements

We have audited the accompanying financial statements of Indian Oil Corporation Limited("the Company"), which comprise the Balance Sheet as at March 31, 2014, and theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards notified under the Companies Act, 1956("the Act") read with General Circular 15/2013 dated September 13, 2013 of theMinistry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. Thisresponsibility includes the design, implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.


In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March31, 2014;

b) In the case of the Statement of Profit and Loss, of the profit for the year ended onthat date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.

Other Matters

The financial statements include the Company's proportionate share injointly controlledassets " 366.67 crore, liabilities " 66.82 crore, expenditure " 271.28crore and the elements making up the Cash Flow Statement and related disclosures inrespect of 18 blocks under New Exploration Licensing Policy (NELPs) / Joint Venture (JVs)accounts for exploration and production, which are based on statements from the respectiveoperators and have been certified by the management. Our observations thereon are based onsuch statements from the operators and certification of the management. Our opinion is notqualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 as amended by theCompanies (Auditor's Report) (Amendment) Order 2004 ("the Order") issued by theCentral Government of India in terms of sub-section (4A) of Section 227 of the CompaniesAct, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4and 5 of the said Order.

2. As required by section 227(3) of the Act, we report that:

i. We have obtained all the information and explanations which, to the best of ourknowledge and belief, were necessary for the purposes of our audit;

ii. In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of the books;

iii. The reports on the accounts of the branch offices audited under section 228 of theAct by auditors appointed by the office of the Comptroller Auditor General of India havebeen forwarded to us as required by clause (c) of sub-section (3) of section 228 of theAct and have been dealt with in preparing our report in the manner considered necessary byus;

iv. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account;

v. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash FlowStatement dealt with by this report comply with the Accounting Standards notified underthe Companies Act, 1956 read with the General Circular 15/2013 dated September 13, 2013 ofthe Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013

vi. Disclosure in terms of clause (g) of sub-section (1) of section 274 of theCompanies Act, 1956 is not required for Government Companies as per Notification No. GSR829(E) dated October 21, 2003 issued by the Department of Company Affairs

Based upon the information and explanations furnished to us and the books and recordsexamined by us in the normal course of our audit, we report that to the best of ourknowledge and belief:

i) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of Fixed Assets.

The Fixed Assets of the Company, other than LPG cylinders and pressure regulators withcustomers, are physically verified by the Management in a phased program of three yearscycle which, in our opinion, is reasonable having regard to the size of the Company andthe nature of its assets. In our opinion and as per the information given by theManagement, the discrepancies observed were not material and have been appropriatelyaccounted in the books.

Fixed assets disposed off during the year were not substantial and, therefore, do notaffect the going concern assumption.

ii) In our opinion, physical verification of inventory has been conducted at reasonableintervals by the management.

In our opinion, the procedures of physical verification of inventory followed by themanagement are adequate in relation to the size of the Company and the nature of itsbusiness.

The Company has maintained proper records of inventory. No material discrepancies havebeen noticed on physical verification between physical stock and book records.

iii) The Company has not taken / granted any loans secured or unsecured from/tocompanies, firms or other parties covered in the register maintained under section 301 ofthe Act. Hence the question of reporting under sub-clause a to g of clause (iii) ofparagraph 4 of the Order does not arise.

iv) In our opinion and according to the information and explanations given to us, thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business for purchase of inventory and fixed assets and sale of goods andservices. We have not observed any major weakness in the internal controls during thecourse of audit.

v) In our opinion and according to the information and explanations given to us, thereare no transactions made in pursuance of contracts or arrangements entered in the registermaintained under Section 301 of the Act exceeding the value of Rupees five lakhs inrespect of any party during the year.

vi) In our opinion and according to the information and explanations given to us,during the year, the Company has not accepted public deposits and no deposits areoutstanding at the year-end except old cases under dispute aggregating to " 0.01crore, where the Company has complied with necessary directions.

vii) In our opinion, the Company has an internal audit system commensurate with itssize and the nature of its business.

viii) We have broadly reviewed the books of account maintained by the Company pursuantto the order made by the Central Government for the maintenance of cost records undersection 209(1)(d) of the Act and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however, made a detailedexamination of these records.

ix) A) According to the information and explanations given to us and on

the basis of our examination of the books of account, the Company is generally regularin depositing with appropriate authorities undisputed statutory dues including ProvidentFund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax,Sales Tax, Service Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other materialstatutory dues applicable to it.

According to the records examined by us and information and explanations given to us,no undisputed dues payable in respect of income tax, wealth tax, sales tax, service tax,customs duty, excise duty, investor education and protection fund and cess were inarrears, as at March 31, 2014 for more than six months from the date they became payable.

B) The details of dues of Sales Tax, Service Tax, Income Tax, Customs Duty, Wealth Tax,Excise Duty and Cess, which have not been deposited on account of any dispute are given inthe Annexure to this report.

x) The Company neither has any accumulated losses as on March 31, 2014, nor it hasincurred any cash loss during the financial year ended on that date or in the immediatelypreceding financial year.

xi) In our opinion and according to the information and explanations given to us, theCompany has not defaulted in repayment of dues to a financial institution, bank ordebenture holders.

xii) The Company has not granted any loans and advances on the basis of security by wayof pledge of shares, debentures and other securities.

xiii) The Company is not a chit fund or a Nidhi / Mutual benefit fund / society.

xiv) In our opinion, the Company is not dealing in or trading in shares, securities,debentures and other investments.

xv) In our opinion, in respect of the guarantee given by the Company for the loanstaken by others from a bank, the terms and conditions thereof are not, prima facie,prejudicial to the interest of the Company.

xvi) On the basis of review of utilization of funds pertaining to term loans on overallbasis and related information as made available to us, the term loans taken by the Companyhave been utilized for the purposes for which they are obtained.

xvii) On the basis of review of utilization of funds, which is based on overallexamination of the balance sheet of the Company, related information as made available tous and as represented to us by the management, funds raised on short-term basis have notbeen used for long-term investments.

xviii) The Company has not made any preferential allotment of shares during the year.

xix) The Company has created necessary securities or charge as per the debenture trustdeed in respect of bonds/debentures issued and outstanding at the year end.

xx) The Company has not raised any money by way of public issue during the financialyear. Accordingly, the provisions of clause (xx) of paragraph 4 of the Order are notapplicable to the Company.

xxi) As represented to us by the management and based on our examination of the booksand records of the company in accordance with the generally accepted auditing practices inIndia, we have neither come across any material fraud on or by the Company noticed orreported during the year nor we have been informed of any such case by the management thatcauses the financial statements to be materially misstated.

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
(Firm Regn. No. 000112N) (Firm Regn. No. 104767W) (Firm Regn. No. 314010E) (Firm Regn. No.001475C)
Sd/- Sd/- Sd/- Sd/-
(CA. Pankaj Mangal) (CA. Rajen Ashar) (CA. J N Gupta) (CA. Prakash Sharma)
Partner Partner Partner Partner
M. No. 097890 M. No. 048243 M. No. 051428 M. No. 072332

Place : New Delhi

Date : 29th May, 2014

Futures & Options Quote
Expiry Date :
322.75    [2.70] ([0.83]%)
Instrument: FUTSTK
Expiry Date: 31-Jul-2014
Open Price: 322.60
Average Price: 323.97
No. of Contracts Traded: 1,270
Open Interest: 27,36,000
Underlying: IOC
Market Lot: 1,000
Previous Close: 322.75
Day's High | Low: 326.80 | 319.95
Turnover (Cr.): 41.14
Open Int. Change: 0,41,000 ([1.48]% )
Key Information

Key Executives:

Raju Ranganathan , Company Secretary

Sanjiv Singh , Director (Refineries)

B Ashok , Chairman

DEBASIS SEN , Director (Busin.Devlop. & Plan

Company Head Office / Quarters:

Indian Oil Bhavan G-9,
Ali Yavar Jung Marg Bandra(E),
Phone : Maharashtra-91-22-26447616/26447528 / Maharashtra-
Fax : Maharashtra-91-22-26447961 / Maharashtra-
E-mail : investors@indianoil.in
Web : http://www.iocl.com


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