5.1 Property, Plant and Equipment pledged as security [refer note 22]:

Loan from OIDB is secured by way of first ranking pari passu charge by way of hypothecation / mortgage only on Property, Plant & Equipment / projects financed out of loan proceeds of OIDB.

Working capital borrowings from consortium banks are secured by way of first ranking pari passu charge by way of hypothecation of Company's stocks of Raw Material, Finished Goods, Stock-in-Process, Stores, Spares, Components, Trade receivables, Outstanding Money Receivables, Claims, Bills, Contract, Engagements, Securities both present and future and further secured by second ranking pari passu charge over companies movable and immovable property (all Property, Plant & Equipment including investment property) both present and future.

Loan fRom EXIM Bank is secured by first ranking pari passu charge by way of hypothecation / mortgage on moveable fixed assets, lands and other immovable properties, both present and future.

5.2 The Company is eligible for certain economic benefits such as exemptions from custom duty on import of capital goods under Export Promotion Capital Goods (EPCG) scheme of Central Government. The Company accounts for the benefits received for custom duty on purchase of Property, Plant and Equipment as Government grants. During the current financial year the company has received economic benefits of ' 4.23 million (Year ended March 31, 2024 ' 50.88 million) included in the cost of Property, Plant and Equipment by crediting deferred Government Grant and such grant is amortised over the remaining useful life of the Property, Plant and Equipment. The amortization made including benefits received during earlier years is amounting to ' 162.97 million for the year ended March 31, 2025 (Year ended March 31, 2024 ' 162.60 million).

5.3 Exchange Rate Fluctuation Loss / (Gain) [Net] capitalised:

Additions/(adjustments) to Plant and Equipment includes ' Nil million [Year ended March 31, 2024 '(0.06) million] in relation to exchange rate fluctuation loss / (gain) [net] capitalised as per para D13AA of Ind AS 101.

5.4 Freehold land includes land measuring 2.37 acres situated in the state of Gujarat having gross carrying amount of ' 0.91 million. The said land is currently in the possession of the company, some trespassing has been observed and company is in the process of initiating necessary action in this regard.

6.1 Includes leasehold lands where the ownership will be transferred to the Company at the end of the lease period. These leasehold lands are not depreciated.

6.2 Right-of-Use Assets includes assets having gross carrying amount of ' 1,888.15 million (As at March 31, 2024'2,571.49 million), which is in possession of the Company towards which formal lease / sale deeds are yet to be executed [refer note 48.1].

The above includes land pertaining to Refinery Land (Phase I and II) measuring to 3.47 acres, for which company has informed to Karnataka Industrial Area Development Board (KIADB) to take suitable action to surrender / de-notify same as it is under encroachment. At present the value of the said land is not ascertainable and expected amount is insignificant.

6.3 An amount of ' 2.40 million (Year ended March 31, 2024'2.40 million) towards depreciation charged to Right-of-Use Asset has been capitalized as component of cost of Capital Work-in-Progress (CWIP) [refer note 7.3].

7.1 Additions to CWIP includes borrowing costs amounting to ' 0.02 million (For the year ended March 31, 2024 ' 12.78 million) and allocated / will be allocated to different class of assets. The rate used to determine the amount of borrowing costs eligible for capitalisation was 6.83 % (For the year ended March 31, 2024 was 7.56%) which is the effective interest rate on borrowings.

7.2 An amount of ' 6.89 million (Year ended March 31, 2024'0.03 million) towards Finance cost on lease liability has been capitalized as a component of cost of Capital Work-in-Progress (CWIP).

7.3 An amount of ' 2.40 million (Year ended March 31, 2024'2.40 million) towards depreciation charged to Right-of-Use Asset has been capitalized as a component of cost of Capital Work-in-Progress (CWIP).

7.4 Capital Work-in-Progress (CWIP) includes interest on borrowings pertaining to Unsecured Foreign Currency Term Loan (FCNR) (B) for Capex [refer note 22.6].

The management has considered the fair value (level 3 hierarchy) of investment in Mangalam Retail Services Limited and Mangalore SEZ Limited equivalent to the carrying amount as at reporting period.

During the meeting held on March 22, 2024, the Board of Directors approved acquisition of 1,34,80,000 equity shares at ' 35 per share of Mangalore SEZ Limited (MSEZL) from IL&FS for a total consideration of ' 471.80 million. Subsequently, during the current financial year the Board of Directors in its meeting held on January 20, 2025 revised the acquisition price to ' 48.708 per share for a total consideration of 656.58 million with an indicative time period of one year for completion of the acquisition. After this acquisition, equity stake of the company shall increase from 0.96% to 27.92%.

11.2.2 Details of Investment: Startup Fund

During the year ended March 31, 2025, the Company has recognized Fair Value gain in ONGC Start up Fund to the tune of ' 20.69 million (Year ended March 31, 2024 ' 11.07 million).

The investment in ONGC Startup Fund has been measured at fair value (level 2 hierarchy).

Company has policy of providing financial assistance to Schedule Caste / Schedule Tribe category dealers for Retail Outlets under the Corpus Fund Scheme (CFS). Under this scheme upon written request seeking working capital loan / assistance by dealer, the company provides working capital loan for a full cycle of operation (equivalent to seven days sales volume) of the dealer. This working capital loan as well as the interest at the specified rate thereon will be recovered in hundred equal monthly instalments from the thirteenth month of commissioning of the dealer operated Retail Outlet.

As per the Government of India’s scheme for Promotion of flagging of merchant ships in India by providing subsidy support to Indian Shipping companies in global tenders floated by Ministries / Departments / Central Public Sector Enterprises (CPSEs), the eligible Indian shipping company shall be paid the subsidy amount along with the charter hire amount as per the contract term by the Company and the Company will be then reimbursed by Government under the scheme.

The Taxation Laws (Amendment) Act, 2019 inserted a new section 115BAA in the Income Tax Act, 1961, which gives domestic companies a non-reversible option to pay corporate tax at reduced rate, subject to certain conditions. Such option can be exercised for the financial year 2019-20 or any subsequent financial year. The Company did not exercise the option for the financial years ended upto March 31, 2024. The financial statements of the Company for the year ended March 31, 2025 have been prepared considering the old Corporate Tax rate. However, the option for the new lower tax rate for the financial year 2024-25 can be exercised by the Company on or before the due date for filing of the return of income for the financial year 2024-25.

17.1 Generally, the Company enters into long-term sales arrangement with Oil Marketing Companies for domestic sales and short term arrangement with others. Besides, the export of products are undertaken through term contracts, spot international tenders, short term tender arrangements, B2B arrangements and supplies to SEZ customers. The average credit period [wherever applicable] on sales ranges from 7 to 45 days (Year ended March 31, 2024 ranges from 7 to 45 days). Interest is not charged on trade receivables for the applicable credit period from the date of invoice. For delayed period of payments, interest is charged [wherever applicable] as per respective arrangements, which is upto 3% per annum (Year ended March 31, 2024 upto 3% per annum) over the applicable bank rate on the outstanding balance.

17.2 Of the trade receivables, balance as at March 31, 2025 of ' 33,587.11 million (As at March 31, 2024 ' 36,633.42 million) are due from the customers mentioned below. There are no other customers who represent more than 5% of the total balance of trade receivables other than mentioned below :

Note: Major customers' identity are not disclosed on account of market confidentiality. Trade receivable from individual customer for current / previous year constituting not more than 5% of total trade receivables amount has not been disclosed.

17.3 Usually, the Company collects all receivables from its customers within the applicable credit period. The Company assesses impairment on trade receivables from all the customers on facts and circumstances relevant to each transaction.

17.4 Secured by bank guarantees / letter of credit received from customers.

17.5 The Company has concentration of credit risk due to the fact that the Company has significant receivables from customers mentioned in note 17.2, however these customers are reputed and creditworthy.

17.6 There are no outstanding receivables due from directors or other officers of the Company.

20.1 Terms/rights attached to Equity shares

The Company has two classes of equity shares having a par value of ' 10 per share and ' 10,000 per share. Each holder of equity shares is entitled to one vote per share. The dividend (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

20.5 Equity shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment: Nil (As at March 31, 2024: Nil).

20.6 Equity shares of ' 10 each (equivalent to 303,550 equity shares of ' 10 each) were forfeited in the year 2009-10 against which amount originally paid up was ' 654,000.

21.1 An amount of ' 76.78 million as at March 31, 2025 (As at March 31, 2024 ' 63.76 million) shown as deemed equity which denotes the difference between the fair value of Corporate Guarantee received from Holding Company and the consideration paid by the company .

21.2 The Company created capital redemption reserve on redemption of preference share capital during the financial years 2011-12 and 2012-13.

21.3 The Company created securities premium on issue of equity share capital and the same can be utilized as per the requirement of the Companies Act, 2013.

21.4 The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to Statement of Profit and Loss.

21.5 Other reserve represents excess consideration paid towards acquisition of non-controlling interest in erstwhile subsidiary company ONGC Mangalore Petrochemicals Limited (OMPL) from non-controlling share holders.

21.6 The amount that can be distributed by the Company as dividend to its equity shareholders is determined considering the requirements of the Companies Act, 2013 and the dividend distribution policy of the Company. Thus, the amount reported in General Reserve is not entirely distributable.

21.7 On August 22, 2024, the shareholders of the Company approved the final dividend of ' 2.00 per share (20%) for FY 2023-24 amounting to ' 3,505.20 million which has since been paid. This was in addition to the interim dividend of ' 1.00 per share for FY 2023-24 (10%) amounting to ' 1,752.60 million declared by the Board of Directors paid during FY 2023-24.

21.8 The company has a dividend distribution policy in line with SEBI (LODR) Regulation, 2016, Department of Investment and Public Asset Management (DIPAM) guidelines, Provisions of Companies Act, 2013, Companies (Declaration & Payment of Dividend) Rules, 2014 and other guidelines to the extent applicable. As per the guidelines with respect to payment of dividend issued by DIPAM, Government of India, the company is required to pay a minimum annual dividend of 30% of PAT or 4% of the net-worth, whichever is higher subject to maximum dividend permitted under extant legal provisions. Though the company endeavours to declare dividend as per these guidelines, during the Financial Year, considering Company's Capital Expenditure and loan repayments plans due in FY 2024-25 and FY 2025-26, the Company did not declare dividends as prescribed by the DIPAM for FY 2024-25. The dividend as per extant guidelines works out to '1,752.60 million and ' 10,787.81 million for FY 2024-25 and FY 2023-24 respectively against which ' Nil million and ' 5,257.80 million was paid / proposed to be paid respectively [Refer Note No. 21.7].

The Company has represented to the Ministry of Petroleum and Natural Gas (MoPNG) being its Administrative Ministry, for grant of exemption from payment of dividend for FY 2024-25 and for payment of lower dividend in comparision to the amount payable as per DIPAM guidelines and reply from MoPNG in this regard is awaited.

22.1 Foreign Currency Borrowings (FCTL) :

22.1.1 Foreign Currency Borrowings are USD denominated Loans and carries variable rate of interest, which is linked with three month SOFR plus spread (Interest Rate as at March 31, 2025 is 5.40% and Interest rate for corresponding loan as at March 31, 2024 was 6.51%).

22.1.2 Foreign Currency Borrowing is secured by first ranking pari passu charge by way of hypothecation / mortgage on movable Property, Plant and Equipment, lands and other immovable properties both present and future.

22.1.3 ' 1,367.05 million (As at March 31, 2024 of ' 1,333.66 million) is repayable within one year i.e. Current Maturities of long term debt has been shown as Current Borrowing.

22.2.1 Loan from OIDB taken by the Company carries fixed rate of interest (Interest rate as at March 31, 2025 is 6.01% and March 31, 2024 was in range of 6.01% to 7.50%).

22.2.2 OIDB loan is secured by way of first ranking pari passu charge by way of hypothecation / mortgage only on Property, Plant & Equipment / projects financed out of loan proceeds of OIDB.

22.2.3 ' 138.12 million (As at March 31, 2024 of ' 815.63 million) is repayable within one year i.e. Current Maturities of long term debt has been shown as Current Borrowings.

22.3 Interest Free Loan from Government of Karnataka

22.3.1 This Loan represents amounts payable on account of "Interest free loan" received from Government of Karnataka. This interest free loan against Value Added Tax (VAT) / State Goods and Services Tax (SGST) will be repayable from March 31, 2028.

22.3.2 The benefit of a Government loan at a below-market rate of interest is treated as a government grant (Ind AS 20). The Interest free loan is recognised and measured in accordance with Ind AS 109, Financial Instruments. The benefit of the Interest free loan is measured as the difference between the initial carrying value of the loan determined in accordance with Ind AS 109, and the proceeds received.

22.3.3 Interest Free Loan from Government of Karnataka - VAT / SGST Loan are secured by bank guarantees given by the company.

Working capital borrowings pertaining to the company amounting to ' 4,266.58 million as at March 31, 2025 (As at March 31, 2024 ' 4,521.88 million) from consortium banks are secured by way of first ranking pari passu charge by way of hypothecation of Company's stocks of Raw Material, Finished Goods, Stock-inProcess, Stores, Spares, Components, Trade receivables, Outstanding Money Receivables, Claims, Bills, Contract, Engagements, Securities both present and future and further secured by second ranking pari passu charge over companies movable and immovable property (all Property, Plant & Equipment including investment property) both present and future.

22.6 Foreign Currency Term Loan (FCNR)

22.6.1 FCNR (B) Capex Loan taken by the company carries variable rate of interest which is three months SOFR plus spread (Interest rate as at March 31, 2024 was 6.78%). The same was fully repaid during FY 2024-25.

22.7 Working capital Term Loan from Banks - ECB :

22.7.1 External Commercial Borrowing taken by the Company are USD denominated loans and carries variable rate of interest linked to three month SOFR plus spread (Interest rate as at March 31, 2025 is 5.48% and as at March 31, 2024 was 6.56%).

22.7.2 Existing balance of ECB loan amounting to USD 500 Million has been refinanced with new ECB loan of equivalent amount in March 2025.

22.8 Deferred Payment Liabilities - From Government of Karnataka :

22.8.1 Deferred payment liability against tax payable under Central Sales Tax (CST) represents amount payable on account of "Interest free loan" received from Government of Karnataka. This sum of the deferred CST loan against Central Sales Tax (CST) shall be repayable in five equal annual instalments without interest after the closure of deferment period.

22.8.2 The benefit of a Government loan at a below-market rate of interest is treated as a government grant (Ind AS 20). The Interest free loan is recognised and measured in accordance with Ind AS 109, Financial Instruments. The benefit of the Interest free loan is measured as the difference between the initial carrying value of the loan determined in accordance with Ind AS 109, and the proceeds received.

22.9 Other Working Capital Loan :

Unsecured short term working capital loan from bank amounting to ' 27,756.67 million as at March 31, 2025 (As at March 31, 2024 ' 19,131.33 million) (Interest rate as at March 31, 2025 is in range of 7.02% to 7 48% and March 31 2024 was in range of 7 10% to 7 50%)

23.1 No amount is due for payment to the Investor Education Protection Fund.

23.2 Price reduction schedule

Payable against capital goods includes ' 55.96 million (As at March 31, 2024'125.53 million) relating to amounts withheld from vendors pursuant to price reduction schedule which will be settled on finalisation of proceedings with such vendors. When the withheld amounts are ultimately finalised, the related adjustment is made to the Property, Plant and Equipment prospectively.

The Company estimates provision based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock as on March 31, 2025'3,379.04 million (As at March 31, 2024'2,095.93 million) and has included it in other provision. This provision is expected to be settled when the goods are removed from the factory premises.

In accordance with Ind AS 12 - Income Taxes, the Company has recognised deferred tax asset for all deductible temporary differences and also for carry-forward of unused tax losses and unused tax credits. The recognition of Deferred Tax Asset (DTA) is based on the probability of earning sufficient taxable profits in the future years as projected by the management (duly considering capacity utilization and price realisation) against which the deductible temporary difference and carry forward of unused tax losses and unused tax credits can be utilised. Deferred Tax asset has been recognised net of deferred tax liability.

26.1 Trade payables include ' 12,733.48 million (As at March 31, 2024 of ' 21,249.67 million) for which ONGC has given guarantees on behalf of the Company.

26.2 The average credit period [wherever applicable] on purchases of crude, stores and spares, other raw material, services, etc. ranges from 4 to 90 days (Year ended March 31, 2024 ranges from 7 to 60 days). Thereafter, interest is charged [wherever applicable] upto 7.50 % per annum (Year ended March 31, 2024 upto 7.50% per annum) over the relevant bank rate as per respective arrangements on the outstanding balances. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

36.1 The company has generated a total of 8,838,213 Kwh of Solar power for the year ended March 31, 2025 (Year ended March 31, 2024 a total of 7,890,604 Kwh) and the same are captively consumed. The monetary values of such power generated that are captively consumed are not recognised for the purpose of disclosure in the financial statement.

36.2 Disclosure pertaining to Corporate Social Responsibility are given below:-

(a) Gross amount required to be spent by the Company during the year: ' 828.52 million (Year ended March 31, 2024'353.60 million).

# An amount of ' 225.78 million representing unspent money on ongoing projects for FY 2023-24 has been transferred to Specified Bank account on April 29, 2024.

@ An amount of ' 705.21 million representing unspent money on ongoing projects for FY 2024-25 will be transferred to Specified Bank account within the stipulated timeline as applicable.

(e) Reason for Shortfall :

The Company has allocated a total CSR budget of ' 828.52 Million for various projects under the items listed in Schedule VII of the Companies Act, 2013 in FY 2024-25. During the financial year, an expenditure of ' 123.31 Million was incurred against the allocated budget. The shortfall of ' 705.21 Million is primarily due to milestone-based payments for multi-year ongoing projects, which are currently in various stages of implementation.

In compliance with statutory provisions, the unspent amount of ' 705.21 Million will be transferred to the Unspent CSR Account (UCSRA) within the stipulated timeline as applicable, and will be utilized in accordance with the applicable CSR Rules.

Additionally, ' 25.03 Million was transferred to the UCSRA (Unspent CSR Account) for the financial year 2022-23, which was fully utilized during the financial year 2023-24 as per CSR guidelines. Furthermore, ' 225.78 Million was transferred to the UCSRA for the financial year 2023-24, out of which ' 162.30 Million has been utilized during 2023-24. The remaining balance is planned to be utilized by 2025-26.

36.5.1 During the previous financial year, certain arbitration cases have been settled which were pertaining to earlier years.

36.5.2 In compliance with the norms of the Karnataka Electricity Regulatory Commission, Company had made provision towards purchase of Renewable Energy Certificates (REC) in order to meet compliance requirement of Renewable Purchase Obligation (RPO) and accordingly, provision for same was recognized

in the books amounting to ' 1,211.70 million till March 31, 2023.

During the previous financial year, the REC price had reduced substantially resulting in closing provision in the books pertaining to the said purchase obligation being restated to ' 459.97 million. Further, considering the legal opinion along with other favourable judgements in similar matter, during the previous Financial Year, the company had re-assessed the requirement of carrying the provision in books of accounts and concluded that the provision was no longer required to be carried in the books. Accordingly, the said provision had been reversed.

Besides, the company being a Co-generation Captive user, is not an obligated entity for RPO. Nevertheless, it has fulfilled the RPO requirements based on power generated from own solar roof top, captive plant gas turbine using refinery fuel gas, green energy purchase from open access and Heat Recovery Steam Generators. Considering the fact that the outflow of resource for the company is also remote, no contingent liability has been disclosed.

39 Leases39.1 Obligations under finance leases

39.1.1 The Company has adopted Ind AS 116 ‘Leases’ effective April 1, 2019. The Company has entered into lease agreements for lands which have been classified as finance leases and the same is now disclosed as Right of Use Assets (ROU). The ownership of the lands will be transferred to the Company at the end of the lease term with nominal payment of administrative charges. The lease term ranges from 5 to 44 years.

Financial lease obligation as at March 31, 2025 is immaterial (As at March 31, 2024 : immaterial).

39.2 Operating lease arrangements39.2.1 Leasing arrangements

The Company has adopted Ind AS 116 ‘Leases’ effective April 1, 2019. The Company has entered into arrangements for buildings, right of way and lease of land which have been classified as operating leases and the same is now disclosed as Right of Use Assets (ROU). The lease period for buildings ranges from 3 years to 10 years, for right of way ranges from 11 months to 30 years and for leases of land ranges from 11 months to 99 years. For leasehold land, the Company does not have option to purchase the land at the end of the lease period. Generally, the lease arrangements for land requires Company to make upfront payments at the time of the execution of the lease arrangement with annual recurring charges with escalations in annual lease rentals.

39.2.2 Payments recognized as an expense

The Company has adopted Ind AS 116 ‘Leases’ effective April 1, 2019 and wherever the lease is short term lease, lease for low value assets or having variable lease payments are not included in lease liabilities.

Present Status of Provident Fund (Trust) :

(a) Based on the request from the Board of Trustees of Provident Fund of MRPL and also by the Company, EPFO has issued the order dated December 12, 2022, stating that the exemption granted to the establishment stands surrendered w.e.f December 31, 2022 and the company has to report the compliances as un-exempted establishment with effect from January 2023. Accordingly, from January 2023 onwards, the Company has started remitting the contribution towards the Provident Fund to EPFO along with the applicable administrative charges thereon.

(b) The company has transferred all its members' balances and the corresponding investments held in Government Securities along with the other funds available with PF Trust (including funds realised from sale of investments in other securities) to EPFO. As the amount transferred to EPFO together with the face value of securities / instruments, is more than the members' balances including the accrued interest thereon as on December 31, 2022, no additional provision is warranted during the current financial year (Year ended March 31, 2024 ' Nil). The Company is awaiting for a formal notification of cancellation of exemption and also gazette notification under Para 28(5) of the Employees' Provident Funds Scheme, 1952.

10.1.2 Defined benefit plans

10.1.2.1 Brief Description: A general description of the type of Defined benefit plans are as follows:

a) Gratuity:

15 days salary for every completed year of service. Vesting period is 5 years and the payment is restricted to ' 2 million. Besides the ceiling of gratuity will increase by 25% whenever IDA rises to 50%. The MRPL Gratuity Fund Trust was formed on April 20, 2007 and investments of the funds received from the company after actuarial valuation and the investment of the funds upto June 28, 2013 was made in the manner prescribed by Income tax Rule 67(1) of the Income Tax Rules ,1962 as amended from time to time. The Funds of MRPL Gratuity Fund Trust after June 28, 2013 are being invested in Group Gratuity Cash Accumulation Scheme (Traditional Fund) of various insurance companies.

b) Post-Retirement Medical Benefits (PRMB):

After retirement, on payment of one time lump sum contribution, the superannuated employee and his/her dependent spouse and dependent parents will be covered for medical benefit as per the rules of the Company.

During the current financial year, the company has invested part portion of its PRMB liability in LIC's Group Post Retirement Medical Benefit Plan to the tune of ' 140.39 million.

c) Resettlement Allowance:

At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligible for Settlement Allowance.

No other post-retirement benefits are provided to these employees.

In respect of the plans, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2025 by a member firm of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method. The liabilities for Defined Benefit Plans are recognized and charged to Statement of Profit and Loss.

The rate of discounting is based upon the market yield available on Government bonds at the accounting date with a term that matches. The salary growth takes account inflation, seniority, promotion and other relevant factor on long term basis. Expected rate of return on plan assets is based on market expectation, at the beginning of the year, for return over the entire life of the related obligation.

The current service cost, the net interest expense and past service cost for the year are included in the ‘Employee benefits expense’ line item in the statement of profit and loss.

The remeasurement of the net defined benefit liability is included in other comprehensive income. The components of remeasurement of net defined benefit liability recognised in other comprehensive income is ' (-) 293.14 million (previous year ' (-) 77.24 million).

40.2 Other long term employee benefits40.2.1 Leave encashment

A brief description on Leave encashment are as follows:

a) Earned Leave Benefit (EL) :

Accrual - 32 days per year.

Accumulation up to 300 days allowed.

EL accumulated in excess of 15 days is allowed for encashment while in service provided the EL encashed is not less than 5 days.

b) Half Pay Leave (HPL) :

Accrual - 20 days per year.

Encashment while in service is not allowed.

Encashment on retirement is permitted; restricted up to 300 days along with Earned leave.

The liability for above leaves (a & b) are recognized on the basis of actuarial valuation.

During the current financial year, the company has invested part portion of its EL and HPL liability in LIC's New Group Leave Encashment Plan to the tune of ' 499.90 million.

40.3 Termination Benefits :40.3.1 Premature Retirement on Medical Grounds :

The Company has an approved scheme of Premature Retirement on Medical Grounds. Ex-gratia payment equivalent 60 days emolument for each completed year of service or the monthly emoluments at the time of retirement multiplied by the balance months of service left before normal date of retirement, whichever is less is payable apart from Superannuation Benefits.

40.3.2 Scheme for Self Insurance for providing lump-sum monetary compensation:

Under the scheme of ‘Post Retirement Benefit and Benefit on Separation’, in case of employee's death or suffering permanent total disablement due to an accident arising out of and in the course of employment, a compensation equivalent to 100 months Basic Pay plus Dearness Allowance (DA) without laying down any

minimum amount is payable.

40.3.3 Benefits of Separation under SABF (re-nomenclatured now as MDCPS) :

In case of death / permanent disablement of an employee while in service in the Company, the beneficiary has to exercise desired options available within 6 months from the date of death / permanent total disablement.

40.3.4 Terminal benefits are unfunded plans, and no plan assets are involved.

40.3.5 Termination Benefits are charged to Statement of Profit and Loss as and when incurred.

41 Segment Reporting

The Company has “Petroleum Products” as single reportable segment.

41.1 Information about major customers

Company’s significant revenues are derived from sales to oil marketing companies which is 57% and 62% of the Company's sales related to petroleum products for the year ending March 31, 2025 & March 31, 2024 respectively. The total sales to such companies amounted to ' 6,27,436.44 million for the year ended March 31, 2025 and ' 6,48,229.38 million for the year ended March 31, 2024.

No customer (excluding oil marketing companies mentioned above) for the years ended March 31, 2025 and March 31, 2024 contributed 10% or more to the Company’s revenue.

42.3 Transactions with other Government-Controlled Entities

The Company is a Government related entity, engaged in the business of refining of crude oil and marketing of petroleum products. The Company also deals on regular basis with entities directly or indirectly controlled by the Central / State Governments through its Government authorities, agencies, affiliations and other organizations (collectively referred as “Government related entities”).

Apart from transactions with Company’s group Companies, the Corporation has transactions with other Government related entities, including but not limited to the followings:

• Sale and purchase of products;

• Rendering and receiving services;

• Leasing of assets;

• Depositing and borrowing money; and

• Use of public utilities

These transactions are conducted in the ordinary course of the Company’s business on terms comparable to those with other entities that are not Government related.

43 Financial instruments43.1 Capital Management

The Company’s objective when managing capital is to safeguard its ability to continue as going concern so that the Company is able to provide maximum return to stakeholders and benefits for other stakeholders; and maintain an optimal capital structure to reduce the cost of capital.

The Company maintains its financial framework to support the pursuit of value growth for shareholders, while ensuring a secure financial base. In order to maintain or adjust the capital structure, the Company may vary the distribution of dividends to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The capital structure of the Company consists of net debt (borrowings as detailed in note 22 offset by cash and bank balances) and total equity of the Company.

The Company’s management reviews the capital structure of the Company on quarterly basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital requirements and maintenance of adequate liquidity.

43.2.1 Investment in Joint Venture has not been disclosed above as these are measured at cost less impairment, if any.

43.3 Financial risk management objectives

The Company’s Risk Management Committee monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

43.4 Market Risk

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business. The major components of market risk are foreign currency exchange risk and interest rate risk.

43.5.2 Forward foreign exchange contracts

The Company books short term forward contracts upto a maximum period of 30 days to the limited extent when export receivables date and import payments date do not fall within the spot date.

43.6 Interest rate risk management

The Company has availed borrowings at fixed and floating interest rates, hence is exposed to interest rate risk. The Company has not entered into any of the interest rate swaps and hence the Company is exposed to interest rate risk.

Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate borrowings, the analysis is prepared assuming the amount of the borrowings outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used for disclosing the sensitivity analysis.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the

Company's profit for the year ended March 31, 2025 would decrease/increase by ' 232.16 million (for the year ended March 31, 2024 : decrease/increase by ' 260.32 million). This is mainly attributable to the Company's exposure to interest rates on its variable rate borrowings (considered on closing balance of borrowings as at year end).

43.7 Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from cash and cash equivalents, deposits with banks as well as customers including receivables. Credit risk management considers available reasonable and supportive forward-looking information including indicators like external credit rating (as far as available), macroeconomic information (such as regulatory changes, government directives, market interest rate etc.).

Major customers comprise of public sector undertakings (Oil Marketing Companies - OMCs) having highest credit ratings and carry negligible credit risk. Concentration of credit risk to any other counterparty did not exceed 10% of total monetary assets at any time during the year.

Only high rated banks are considered for placement of deposits. Bank balances are held with reputed and creditworthy banking institutions.

43.8 Liquidity risk management

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios. The Company manages liquidity risk by maintaining adequate cash & credit lines and continuously monitoring forecast and actual ca ti flows and by matching the maturity profiles of financial assets and liabilities.

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

In respect of all these claims, it is being contested by the Company as not admissible. It is not practicable to make a realistic estimate of the outflow of resource, if any, for settlement of such claim, pending resolution / award from Arbitrators/ Court.

45.2 Disputed tax / Duty demands pending in appeal as at March 31, 2025

45.2.1 Income Tax: ' 0.82 million as at March 31, 2025 (As at March 31, 2024'243.55 million). Against this ' Nil million as at March 31, 2025 (As at March 31, 2024 ' Nil million) is pre-deposit / paid under protest and is included under tax assets/ liability.

45.2.2 Excise Duty: ' 5,271.30 million as at March 31, 2025 (As at March 31, 2024'4,899.33 million). Against this ' 85.90 million as at March 31, 2025 (As at March 31, 2024'90.28 million) is predeposit / paid under protest and is included under other assets [refer note 15].

45.2.3 Customs Duty: ' 1,126.70 million as at March 31, 2025 (As at March 31, 2024'1,079.20 million). Against this ' 379.48 million as at March 31, 2025 (As at March 31, 2024'379.48 million) is adjusted / paid under protest and is included under other assets [It excludes the amount mentioned at 45.2.4] [refer note 15].

45.2.4 There is a claim from the Custom Department for customs duty amounting to ' 2,121.14 million as at March 31, 2025 (As at March 31, 2024 ' 2,121.14 million) along with applicable interest and penalties totally amounting to ' 6,168.37 million as at March 31, 2025 (As at March 31, 2024'6,168.37 million) in respect of classification of tariff of the reformate for the purpose of payment of import duty. An appeal has been filed before the Appellate Authority contesting the entire demand. Pending outcome of the appeal proceedings, no provision for the said demand has been made in the books [refer note 15].

45.3 Others :

As informed by a vendor company, there is a claim from the Deputy Commissioner of Commercial Tax (CT) amounting to ' 4,838.47 million as at March 31, 2025 (As at March 31, 2024 ' 4,598.87 million) against

which a writ petition has been filed by them before Hon'ble Karnataka High Court. In terms of the contract entered with the vendor company, the said liability as and when reaches finality is to be discharged by the company on back to back basis.

45.4 Contingent Asset :

45.4.1 An amount of ' 95.28 million as at March 31, 2024 was earmarked by MSEZL as third party share payable to the company towards pipeline-cum-road corridor usage which was not recognized in the books considering pendency of finalization of the project cost. During the current financial year, an amount of ' 257.80 million has been recognized in the books as receivable from MSEZL to the extent of finalization of project cost along with proportionate space allocated to the third parties. The corresponding impact of same has been considered as reduction from Right of Use Asset [Refer Note 6].

45.4.2 The company is in the process of claiming Export incentive of ' 12.30 million (as at March 31, 2025) for eligible exports under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from concerned authority.

46 Commitments46.1 Capital Commitments:

46.1.1 The estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) as at March 31, 2025'14,148.96 million (As at March 31, 2024'7,847.74 million).

46.1.2 The Company has requested KIADB for allotment of 1,050 acres of land for Phase IV expansion. However KIADB has notified only 990.60 acres of land. The estimated capital commitment against notified land is ' 6,421.97 million (As at March 31,2024'6,399.15 million).

46.1.3 The estimated amount towards acquisition of additional land of 27 acres for development of green belt and buffer zone to meet Environmental clearance conditions for Phase Ill as at March 31, 2025 ' 216.00 million (As at March 31, 2024'216.00 million).

46.2 Other Commitments

46.2.1 The Company is in possession of certain land provisionally measuring 36.69 acres ceded by HPCL for use by the Company for it's Phase Ill expansion and upgradation work. The consideration for such land is mutually agreed to be by way of swapping of land in possession of Company / HPCL. The final documentation in this regard is pending to be executed.

46.2.2 Letters of Credit and Bank guarantees issued by bankers towards procurement of goods and services and outstanding as at March 31, 2025'1,239.13 million (As at March 31, 2024'661.60 million).

46.2.3 The Company has entered into a long term RLNG off take agreement with M/s BPCL as well as Short term RLNG take off agreement with M/s GAIL. These agreements have a take or pay clause and the Company is committed to purchase the said RLNG over the tenure of the agreement.

46.2.4 The Company has entered into a long term transmission of RLNG agreement with M/s GAIL. This agreement has a ship or pay clause and the Company is committed to pay the ship or pay charges over the tenure of the agreement.

46.2.5 The Company has an export obligation to the extent of ' Nil million as at March 31, 2025 (As at March 31, 2024 ' 305.30 million) on account of concessional rate of duty availed under EPCG license scheme on procurement of capital goods and the same is expected to be fulfilled by way of exports.

46.2.6 Pending commitments on account of Corporate Environment Responsibility (CER) and Enterprise Social Commitment (ESC) as at March 31, 2025'750.64 million (As at March 31, 2024'748.74 million).

47 Reconciliation of liabilities arising from financing activities.

The table below details change in the Company's liabilities arising from financing activities, including both cash and non cash changes. Non Cash changes include unrealized foreign exchange gain or loss, amortisation, finance cost on lease liabilities, effect of new leases recognized etc. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Company's Statement of Cash Flows as cash flows from financing activities.

50 Integration of Human Resource of erstwhile subsidiary company ONGC Mangalore Petrochemicals Limited:

Pursuant to the scheme of Amalgamation ('the Scheme') approved by the Ministry of Corporate Affairs (MCA) vide its order No. 24/3/2021-CL-III dated April 14, 2022, Human Resource (HR) integration of erstwhile subsidiary company ONGC Mangalore Petrochemicals Limited (OMPL) with the company is carried out w.e.f May 1, 2022 (effective date of the scheme).

Subsequently, the management grade employees of erstwhile subsidiary company OMPL represented the matter before Honourable High Court of Karnataka with regard to HR integration during FY 2022-23. The judgement was pronounced by single bench of Honourable High Court of Karnataka in May 2024. Currently writ appeals have been filed seeking to challenge the judgement before the division bench of Honourable High Court of Karnataka and the matter is subjudice.

Furthermore, memorandum of settlement with respect to non-management employees of erstwhile subsidiary company OMPL was concluded and same was signed on July 30, 2024 in presence of conciliation officer and assistant labour commissioner.

51 The Company also operates in special economic zone (SEZ) in Mangalore, accordingly is eligible for certain economic benefits such as

exemptions from GST, custom duty, excise duty, service tax, value added tax, entry tax, etc. which are in the nature of government assistance. These benefits are subject to fulfilment of certain obligations by the Company.

52 The Company has a system of periodic physical verification of Inventory, Property, Plant and Equipment and capital stores in a phased manner to cover all items over a period. Adjustment differences, if any, is carried out on completion of reconciliation.

53 The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

54 Some balances of trade and other receivables, trade and other payables and loans are subject to confirmation/reconciliation. Adjustments, if any, will be accounted for on confirmation/reconciliation of the same, which will not have a material impact.

55 During FY 2021-22, company was awarded with 87,748 Nos of Energy Saving Certificates (EScerts) from Bureau of Energy Efficiency (BEE) as part of "Perform, Achieve and Trade" (PAT) scheme, India for achieving reduction in Specific Energy Consumption above targets set by them for the performance during FY 2018-19. Further to that, during FY 2023-24, Monitoring and Verification Audit was conducted as per the guidelines of Bureau of Energy Efficiency (BEE) by approved Empanelled Accredited Energy Auditor (EmAEA) and they have submitted the Certificate of Verification indicating an equivalent reduction of 48,269 EScerts due to non-achievement of Specific Energy Consumption against the targets set by them for the performance during FY 2022-23 which will result in net 39,479 Nos of Energy Saving Certificates (EScerts) available with the company. The final Monitoring and Verification report and related forms are submitted to State Designated Agency, which is Karnataka Renewable Energy Development Limited (KREDL). The final issuance of EScerts for PAT - VI cycle is yet to be done by Ministry of Power. The Calculated floor value of the remaining 39,479 Nos of the said certificates correspond to ? 85.47 million as per formula prescribed by Hon'ble Ministry of Power for determining the floor price. The Company intends to redeem the EScerts only to meet refineries own shortfall (if any) based on Monitoring & Verification to be conducted in future and hence the same has not been carried in inventory. Company was not notified under Perform, Achieve and Trade (PAT) cycle during FY 2023-24 and FY 2024-25.

Further, as per the notification of Ministry of Power titled "Carbon Credit Trading Scheme" (CCTS), dated June 28, 2023, BEE sponsored third party agency has conducted base line audit of Company for FY 202324 data and submitted to BEE, for an anticipated CCTS annual targets effective from April 2025. Company EScerts available in BEE custody can be used to convert / redeem against CCerts which will be issued under CCTS scheme at a future date. The mechanism for conversion of EScetrs to CCerts to be notified by BEE.

56 The number of independent directors on the Board during previous financial years were less than the minimum number of Independent Directors required in terms of the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013, the composition of the Board Level Committees viz., Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee were not complied. Consequently penalty for the said non-compliances was levied by both BSE and NSE for an amount of ' 15.52 million and ' 15.52 million respectively upto December 2024. The company being a Central Public Sector Enterprise (CPSE), the nomination of Directors on the Board of the Company is made by the Administrative Ministry, i.e. Ministry of Petroleum and Natural Gas (MoPNG), Government of India (GoI). The company has been continuously following up with MoP&NG for appointment of requisite number of Independent Directors on the Board of the Company. MoP&NG has appointed 4 (Four) independent directors during 2021-22 which enabled the Company to comply with regard to composition of above referred Committees. Further the Policy for exemption of fines, provides for waiver/ reduction of penalty in case of inability of the Company to make any appointment on the Board due to pending approval from the

Government (Ministry) / Regulator or any statutory Authority. In view of the above, the Exchanges were requested by the company to waive off the fine citing the above fact and subsequently based on the request by the company, BSE has waived fines up to September 2020 for Regulation 17(1), and upto December, 2020 for Regulations 18(1), 19(1) & 21(1) of SEBI (LODR), Regulations, 2015 and NSE from December 2020 to March 2022 under Regulation 18(1), 19(1) & 21(1) of SEBI (LODR), Regulations, 2015 for an amount of ' 3.32 million and ' 2.48 million, respectively. For the balance amount of ' 12.20 million and '

13.04 million levied by BSE and NSE, waiver is awaited.

57 The Company has assessed the possible effect that may result from US Tariffs and Russia-Ukraine War, which is not significant on the carrying amounts of Property, Plant and Equipment, Inventories, Receivables and Other Current Assets. In the opinion of the management, the carrying amount of these assets will be recovered.

58 Figures in parenthesis as given in these notes to financial statements relate to previous years. Previous year figures have been regrouped wherever required.

59 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on April 26, 2025.