2.17. Provisions and contingent liabilities

2.17.1. Provisions are recognized when there is a present
obligation as a result of a past event, it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of
the obligation;

2.17.2. Contingent liabilities are not recognized in the
financial statements but are disclosed unless the

possibility of an outflow of economic resources is
considered remote;

2.17.3. Contingent liabilities and Capital Commitments
disclosed are in respect of items which in each case
are above the threshold limit (*);

2.17.4. Contingent Liabilities are considered only when
show-cause notice is converted into demand.

2.18. Fair value measurement

2.18.1. Fair value is the price that would be received/ paid
to sell an asset or to transfer a liability, as the
case may be, in an orderly transaction between
market participants at the measurement date in the
principal or, in its absence, the most advantageous
market to which the Corporation has access at that
date. The fair value of a liability also reflects its non¬
performance risk;

2.18.2. While measuring the fair value of an asset or liability,
the Corporation uses observable market data as far
as possible. Fair values are categorised into different
levels in a fair value hierarchy based on the inputs
used in the relevant valuation technique.

Financial Instruments

2.19. Financial Assets

2.19.1. Initial recognition and measurement

All financial assets (not measured subsequently
at fair value through profit or loss) are recognised
initially at fair value plus transaction costs that are
attributable to the acquisition of the financial asset.
However, trade receivables that do not contain a
significant financing component are measured at
transaction price.

2.19.2. Subsequent measurement

Subsequent measurement is determined with
reference to the classification of the respective
financial assets. The Corporation classifies financial
assets (other than equity instruments) as under:

(a) subsequently measured at amortised cost;

(b) fair value through other comprehensive income
(FVOCI); or

(c) fair value through profit or loss (FVTPL)

on the basis of its business model for managing
the financial assets and the contractual cash
flow characteristics of the financial asset.

Amortised cost

A ‘debt instrument’ is measured at the amortised
cost if both the following conditions are met.
The asset is held within a business model whose
objective is:

• To hold assets for collecting contractual
cash flows, and

• Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

After initial recognition, such financial assets
are subsequently measured at amortised cost
using the Effective Interest Rate (EIR) method
and such amortization is recognised in the
Statement of Profit and Loss.

Debt instruments at Fair value through
profit and loss (FVTPL)

Fair value through profit and loss is a residual
category for measurement of debt instruments.

After initial measurement, any fair value changes
including any interest income, impairment loss
and other net gains and losses are recognised
in the Statement of Profit and Loss.

Equity investments

All equity investments in scope of Ind-AS
109 (except investments in Subsidiaries, Joint
Ventures, and Associates) are measured at
fair value. Equity instruments which are held
for trading are classified as at FVTPL. For all
other equity instruments, the Corporation
decides to classify the same either as at FVOCI
or FVTPL. The Corporation makes such election
on an instrument-by-instrument basis. The
classification is made on initial recognition and
is irrevocable;

For equity instruments classified as FVOCI,
all fair value changes on the instrument,
excluding dividends, are recognized in other
comprehensive income (OCI);

Equity instruments included within the FVTPL
category are measured at fair value, with all
fair value changes being recognized in the
Statement of Profit and Loss.

M9.3. Impairment of financial assets

In accordance with Ind-AS 109, the Corporation applies
Expected Credit Loss (“ECL”) model for measurement

and recognition of impairment loss on the financial
assets measured at amortised cost;

Loss allowances on trade receivables are measured
following the ‘simplified approach’ at an amount
equal to the lifetime ECL at each reporting date.

2.20. Financial Liabilities

2.20.1. Initial recognition and measurement

All financial liabilities (not measured subsequently
at fair value through profit or loss) are recognised
initially at fair value net of transaction costs
that are directly attributable to the respective
financial liabilities.

2.20.2. Subsequent measurement

The Corporation classifies all financial liabilities as
subsequently measured at amortised cost by using
the Effective Interest Rate Method (“EIR”) and such
amortisation is recognised in the Statement of Profit
and Loss.

2.20.3. Derecognition

A Financial Liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires.

2.21. Financial guarantees

Financial guarantee contracts are recognised initially
at fair value. Subsequently on each reporting date,
the liability is measured at the higher of the amount
of loss allowance determined as per impairment
requirements of Ind AS 109 and the fair value initially
recognised less cumulative amortisation.

2.22. Derivative financial instruments

The Corporation uses derivative financial instruments,
such as forward contracts, interest rate swaps to
mitigate its foreign currency risk, interest risk and
commodity price risk arising out of highly probable
forecast transactions and are presented in Financial
Statements, either as Financial Assets or Financial
liabilities as the case may be.

2.22.1. Derivatives Contracts designated as hedging
instruments

Wherever Hedge Accounting is undertaken, the
derivative financial instruments are recognized at
fair value with due assessment to effectiveness of
the hedge instrument.

By following Cash Flow Hedges, the effective portion
of changes in the fair value is recognized in Other
Comprehensive Income (OCI) and accumulated

under Cash Flow Hedge Reserve within Other Equity,
whereas the ineffective portion, if any, is recognized
immediately in the Statement of Profit and Loss.
The effective portion, previously recognized in OCI
and accumulated as Cash Flow Hedge Reserve is
reclassified to the Statement of Profit and Loss in
the subsequent period, during which, the hedged
expected future cash flows affect profit or loss
and presented in the same line item to which the
underlying is accounted.

Further, in case of previously recognized forecasted
transaction, upon the knowledge of its non¬
occurrence, the effective portion of cumulative gain
or loss is forthwith recognized by transferring from
Cash Flow Hedge Reserve to the Statement of Profit
and Loss.

If the amount accumulated in Cash Flow Hedge
Reserve is a loss and Corporation expects that
all or a portion of that loss will not be recovered
in one or more future period, the Corporation
immediately reclassifies the amount that is not
expected to be recovered into profit or loss as a
reclassification adjustment. The hedge accounting
is discontinued when the hedging instrument expires
or is sold, terminated or no longer qualifies for
hedge accounting.

2.22.2. Derivatives Contracts not designated as
hedging instruments

The derivative financial instruments are accounted at
fair value through Profit or Loss and presented under
Other Income or Other Expenses, as the case may be.

2.23. Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the Balance Sheet,
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention
to settle on a net basis, or to realise the assets and
settle the liabilities simultaneously.

2.24. Taxes on Income

2.24.1. Provision for current tax is made in accordance with
the provisions of the Income Tax Act, 1961;

2.24.2. Deferred tax liability/asset on account of temporary
difference is recognised using tax rates and tax laws
enacted or substantively enacted as at the Balance
Sheet date;

2.24.3. Deferred tax assets are recognised and carried
forward for all deductible temporary differences
only to the extent that it is probable that taxable

profit will be available in future against which the
deductible temporary difference can be utilized;

2.24.4. The carrying amount of deferred tax assets/Liabilities
is reviewed at each Balance Sheet date.

2.25. Earnings per share

2.25.1. Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period;

2.25.2. For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period
are adjusted for the effect of all dilutive potential
equity shares.

2.26. Cash and Cash equivalents

Cash and cash equivalents includes cash on hand,
balances with banks, other short-term, highly liquid
investments with original maturities of three months
or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk
of changes in value.

2.27. Cash Flows

Cash flows are reported using the indirect method,
whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses
associated with investing or financing cash flows. The
cash flows from operating, investing and financing
activities are segregated. For the purpose of the
Statement of Cash Flows, cash and cash equivalent
consist of cash, as defined above, net of outstanding
bank overdrafts as they are considered an integral
part of the Corporation’s cash management.

2.28. Dividend

The Company recognises a liability to make cash
distributions to equity holders of the Corporation
when the distribution is authorised and the
distribution is no longer at the discretion of the
Corporation. As per the corporate laws in India, a
distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised
directly in other equity.

(*) Threshold limit, referred to above, for various
items is stated as part of Financial Statements.

Notes

1. Includes assets of gross block ? 0.007 Crore (31.03.2024: ? 0.007 Crore) of erstwhile Kosan Gas Company that have not been
handed over to the Corporation. Though Kosan Gas Company was to give up their claim, in view of the tenancy right sought
by third party, the matter is under litigation.

2. Includes Gross Block of ? 1,107.39 Crore (31.03.2024: ? 1,103.36 Crore) towards Land, Building, Plant & Equipment, Furniture
& Fixtures, Transport equipments, Office/lab Equipments, Roads & Culverts, Pipelines, Railway Sidings, etc. representing
Corporation’s share of Assets, jointly owned with other Companies.

3. Includes Gross Block of ? 10.66 Crore (31.03.2024: ? 10.93 Crore) towards Roads & Culverts, Transformers & Transmission lines,
Railway Sidings & Rolling Stock for which though ownership does not vest with the Corporation, operational control over
such assets is exercised. These assets are amortized as per useful life specified in Schedule II of Companies Act, 2013.

4. a) Includes following assets used for distribution of PDS Kerosene under Jana Kalyan Pariyojana against which financial

assistance had been provided by Oil Industry Development Board:

5. Assets held for sale consists of items such as plant and equipment, office equipment, transport equipment, buildings,
furnitures & fixtures and roads & culverts which have been identified for disposal due to replacement/ obsolescence of
assets which happens in the normal course of business. These assets are expected to be disposed off within the next twelve
months. On account of classification of these assets as ‘Asset held for sale’, a loss of ? 39.42 Crore (2023-24: ? 6.42 Crore) has
been recognised in the Statement of Profit and Loss.

6. Includes Right-of-Use Assets having Gross Block ? 115.63 Crore (31.03.2024: ? 115.63 Crore) for land acquired on lease-cum-sale
basis from Karnataka Industrial Area Development Board (KIADB), that has not been amortized over the period of lease in
view of freehold title that would vest upon fulfilment of certain terms and conditions, as per allotment letter.

7. Includes adjustment to Cost of Assets pursuant to exchange differences arising on long term foreign currency monetary
items, which, in accordance with Para 7AA of Ind AS 21 read with Para D13AA of Ind AS 101, are capitalized and depreciated
over the balance useful life of the assets.

8. The Corporation has considered pipeline assets laid within the boundary limit of its premises as integral part of Tanks / Other
Plant and Machinery and have been depreciating such assets based on the useful life of associated Plant & Equipment, in
line with the Schedule II of the Companies Act, 2013.

9. Includes an increase in depreciation by ? 3.95 Crore (2023-24: ? Nil Crore) on account of a change in accounting estimate
regarding the residual value of Optical Fiber Cable from 5% to 0%, and an increase in depreciation by ? 5.28 Crore (2023-24:
? Nil Crore) on account of a change in accounting estimate regarding the residual value of Scada, PLC & DCS from 1% to 0%,
implemented during FY 2024-25 based on assessment carried out by the Management.

10. During the year, in respect of LPG consumers who have been inactive for 15 years and the useful life of equipment they are
holding is also over, the equipment value (First Cost: ? 1.80 Crore, 2023-24: ? 1.35 Crore) along with the LPG consumer deposit
(? 4.31 Crore, 2023-24: ? 2.28 Crore) has been de-recognised in the books of account.

11. The process of capitalization in respect of Property, Plant and Equipment including accounting of Capital Work-in-Progress
is under continuous review and updation, wherever required, and is being carried out on a regular basis.

12. In the nature of business carried out by the Corporation, there are certain leasehold immovable properties, which are under
its continuous possession, control and use over the period, the lease agreement of which have expired. Pending renewal of
such leases, these have not been recognised as Right of Use Assets.

Notes

1. Includes Gross Block of ? 91.25 Crore (31.03.2024: ? 88.79 Crore) towards Right of Way representing Corporation’s share of
Assets, jointly owned with other Companies.

2. The Corporation has entered into service concession arrangements with entities that supply electricity (referred to as
"The Regulator”) in order to construct, own, operate, and maintain a wind energy-based electric power generating station
(referred to as the “Plant”). Pursuant to the agreement, the Corporation will operate and maintain the Plant, and will sell the
electricity generated to The Regulator for a period covering the substantial useful life of the Plant, which may be renewed for
a further period upon mutual agreement between the parties. During the concession period, the Corporation is responsible
for providing any maintenance services required. In turn, the Corporation has the right to charge The Regulator an agreed
rate as set forth in the service concession arrangement. The value of the Plant’s construction has been recognized as an
Asset, which is amortised over the useful life of the asset.

6.1. Increase of ? Nil Crore (2023-24: ? 0.51 Crore) in the carrying amount is pursuant to accounting of Corporate Guarantee
commission, which is in accordance with Ind AS 109.

6.2. As per the guidelines issued by Department of Public Enterprises (DPE), Ministry of Finance, in February 2010, the Board of
Directors of Maharatna Central Public Sector Enterprises (CPSEs) can invest in joint ventures and wholly owned subsidiaries
subject to an overall ceiling of 30% of the net worth of the CPSE. The Corporation has requested Ministry of Petroleum
& Natural Gas (MOP&NG) to confirm its understanding that for calculating this ceiling limit, the amount of investments
specifically approved by Government of India [viz. investment in HPCL Mittal Energy Limited (HMEL) and HPCL Rajasthan
Refinery Limited (HRRL)] are to be excluded. The Corporation has calculated the limit of 30% investment in joint ventures
and wholly owned subsidiaries, by excluding these investments.

6.3. Petronet India Limited is in the process of voluntary winding up w.e.f. August 30, 2018.

6.4. During the current year, Bhagyanagar Gas Limited has allotted 22,88,000 Shares of ? 10/- each to Telangana State Industrial
Infrastructure Corporation for land allotted earlier, resulting into change in Corporation shareholding from 48.73% to 47.51%.

6.5. During the current year, the Corporation has invested an amount of ? 50.00 Crore in 6% Non-convertible Cumulative
Redeemable Preference Shares (NCCRPS) of ? 1,00,000 each fully paid up [redeemable on 31^st March 2044 or earlier, at the
option of either the issuing entity or the subscriber, depending upon funds availability], issued by wholly-owned-subsidiary
HPCL LNG Limited to meet it’s fund requirement.

Based on the characteristics of contractual cash flows, investment has been recognised at ‘Fair Value Through Profit or Loss
(FVTPL)’, and, accordingly, the initial recognition of investment has been carried out by measuring the present value of future
cash flows (i.e. management’s current internal estimates towards receipt of dividend on periodical basis and realisations
towards redemption as at the end of the maximum redemption period) using a discount rate of 9.05% per annum.

View above, fair value of the instrument at initial recognition is ? 33.53 Crore, and the resultant difference of ? 16.47 Crore,
has been classified as deemed equity investment into the wholly-owned-subsidiary. Upon subsequent measurement of
investment on 31^st March 2025, a gain of ? 0.14 Crore, has been accounted as ‘Fair value gain on Investments carried at FVTPL’,
with corresponding increase in the value of NCCRPS.

7.1. The Corporation intends to hold this Investment for long term strategic purposes, and accordingly, designated it at fair value
through Other Comprehensive Income. There was no disposal of this strategic investment during the financial year. Further,
the increase in number of shares during the year is on account of allotment of bonus shares.

7.2. The value of investment in certain start-ups have been fair valued with corresponding recognition of fair value gain of ? 2.03
Crore (2023-24: ? 58.28 Crore), considering the information available about deals/funding that have taken place subsequent to
our investment in such start-ups. In other cases, considering that the start-ups are in the stage of their development and are
mostly in traction and refinement stages, the carrying value of such start-ups is considered as a reasonable approximation
of their fair value.

F. Rights and Restrictions on Equity / Preference Shares

The Corporation has only one class of Equity Shares having a face value of ? 10/- per share which are issued and subscribed.
Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of the
winding up, the holders of equity shares will be entitled to receive the remaining assets in proportion to the number of
equity shares held by the shareholders and the amount paid up thereon.

The Corporation also has 75,000 6% cumulative Redeemable Non-convertible Preference Shares of ? 100 /- each as a part
of the Authorised Capital, which were issued earlier by the erstwhile ESSO Standard Refining Co. of India Limited (ESRC) .
Presently the said Preference Shares stand redeemed.

H. In the period of five years immediately preceding 31^st March, 2025

(i) number and class of shares allotted as fully paid up pursuant to contract without payment being received in
cash : Nil

(ii) aggregate number and class of shares allotted as fully paid up by way of bonus shares : The Board, at its meeting
held on May 09, 2024 had recommended the issuance of bonus equity shares in the ratio of one equity share of ? 10/-
each for every two equity shares of ? 10/- each held, and it was approved by the members of the Corporation through
postal ballot on June 11, 2024. Pursuant to this, the Corporation issued 70,92,74,172/- Equity Shares as bonus shares
during the current year.

(iii) aggregate number and class of shares bought back : The Board, at its meeting held on November 04, 2020 approved
the buyback of fully paid-up equity shares of the face value of ? 10/- from the open market through stock exchange
mechanism for an aggregate amount not exceeding ? 2,500 Crore ("Maximum Buyback Size”) and at a price not exceeding
? 250 per Equity Share, payable in cash. The shares buy-back program, which commenced on November 17, 2020 had
concluded on May 14, 2021. During the buy-back period, a total of 10,52,74,280/- shares, representing 6.91% of paid up
Share Capital (prior to commencement of buy-back) having a face value of ? 105,27,42,800/- had been bought back
and extinguished.

40.A. Risk management framework

The Corporation has established an Enterprise Risk Management (ERM) framework under the Corporation’s Enterprise Risk
Management Charter and Policy, which is embedded at the forefront of business strategies and focuses on the stronger,
deeper and trust-based relationship with the stakeholders. This framework provides necessary support to the business to
navigate through the evolving risk landscape through dynamic risk management approach that embraces disruption and
enhances resiliency and builds trust.

The Corporation is regularly reviewing the identified and emerging risks and taking appropriate risk mitigation measures.

The Risk Management Committee (RMC), receives regular insights on risk exposures faced by the Corporation, thereby
enabling it to provide inputs on prompt actions to be taken as well as monitor the actions taken. The Board is also updated
regularly on the risk assessment and mitigation procedures.

Technology has been enabled to support the ERM processes with a focus on optimising risk exposures and automation of
risk reporting across the organization.

40.B. Corporation has identified financial risk and categorised them in three parts Viz. (i) Credit Risk, (ii)
Liquidity Risk & (iii) Market Risk. Details regarding sources of risk in each such category and how
Corporation manages the risk is explained in following notes
40.B.1 Credit risk

Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to
meet their contractual obligations. The risk arises principally from the Corporation’s Receivables from Customers and so
also from Investment Securities. The risk is managed through credit approval, establishing credit limits and continuous
monitoring of the creditworthiness of Customers to whom the Corporation extends credit terms in the normal course
of business.

The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective
carrying amount.

Note: Refer Note 61 regarding loans given to consumers under Pradhan Mantri Ujjwala Yojna (PMUY).

The amounts written off relates to customers who have defaulted payments and are not expected to pay their outstanding
balances, mainly due to economic circumstances.

Cash and Cash Equivalents

The Corporation held cash and cash equivalents of ? 80.13 Crore as on 31.03.2025 (31.03.2024 : ? 159.07 Crore). The cash
and cash equivalents (other than cash on hand) are held with scheduled banks. The Corporation invests its surplus funds
for short duration in fixed deposit with banks, Government of India T-bills, Tri Party Repo System (TREPS), Clearcorp Repo
Order Matching System (CROMS) and debt schemes of Mutual Funds, all of which carry no mark to market risks as the
Corporation is exposed only to low credit risk.

Derivatives

The forex and interest rate derivatives are entered into with banks having an investment grade rating. Commodity
derivatives are entered with reputed Counterparties in the OTC (Over-the-Counter) Market. The exposure to counter-parties
are closely monitored and kept within the approved limits.

Investment in Debt Securities

Investment are made in government securities or bonds which do not carry any credit risk, being sovereign in nature.

Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they become due.
Corporation has a strong focus on effective management of its liquidity to ensure that all business and financial
commitments are met on time. The Corporation has adequate borrowing limits in place duly approved by its Shareholders
and Board. Corporation’s sources of liquidity includes operating cash flows, cash and cash equivalents, fund and non-fund
based credit lines from banks and liquid investment portfolio. Corporation ensures that there is minimal concentration
risk by diversifying its portfolio across instruments and counterparties. Cash and fund flow management is monitored
daily in order to have smooth and continuous business operations.

(i) Financing arrangements

The Corporation has adequate fund and non-fund based lines from various banks. The Corporation has sufficient
borrowing limits in place duly approved by its Shareholders and Board. Domestic and international credit rating
from reputed credit rating agencies enables access of funds both from domestic as well as international market.
Corporation’s diversified source of funds and cash flow enables it to maintain requisite capital structure discipline.
Corporation diversifies its capital structure with a mix of instruments and financing products across varying maturities
and currencies. The financing products include syndicated loans, foreign currency bonds, bank term loans, TREPS loan,
CROMS loan, commercial paper, non-convertible debentures, buyer’s credit loan, clean loan etc. Corporation taps
domestic as well as foreign debt markets from time to time to ensure appropriate funding mix and diversification
across geographies.

40.B.3. Market Risk - Market Risk is further categorised in (i) Currency risk , (ii) Interest rate risk , (iii) Commodity
risk & (iv) Price risk

40.B.3.1. Currency risk

The Corporation is exposed to currency risk, primarily on account of its repayment obligations of loans taken in foreign
currency and imports, to be paid in foreign currency. The exposure is mainly denominated in U.S.Dollar. The Corporation
has a Forex Risk Management Cell (FRMC) which actively review the forex and interest rate exposures. The Corporation
uses generic derivative contracts to mitigate the risk of changes in foreign currency exchange rates in line with
Corporation’s forex risk management policy. The Corporation does not use derivative financial instruments for trading
or speculative purposes.

The Corporation has long-term foreign currency syndicated loans with floating rate of interest, which exposes the
Corporation to cash flow interest rate risk. The borrowings at floating rate are denominated in USD. The Corporation
manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Under this, the Corporation agrees
with other Parties to exchange at specified intervals (i.e. quarterly), the difference between fixed contract rates and
floating rate interest amounts calculated by referring to the agreed notional principal amounts. The Corporation monitors
the interest rate movement and manages the interest rate risk, based on the Corporation’s Forex Risk Management
Policy. The Corporation also has a Forex Risk Management Cell (FRMC) that actively reviews the forex and interest rate
exposures. The Corporation does not use derivative financial instruments for trading or speculative purposes.

The Corporation’s borrowings which are contracted at fixed rate are carried at amortised cost. These are not affected
due to interest rate risk as defined in Ind AS 107 as neither the carrying amount nor the future cash flows will fluctuate
in the event of a change in market interest rates.

The Corporation’s Profitability is exposed to the risk of fluctuation in prices of Crude Oil and Petroleum products in
international markets. The Corporation monitors and reduces the impact of the volatility in International Oil prices based
on approved Oil Price Risk Management Policy by entering into derivative contracts in the OTC market. The Corporation
also has Oil Price Risk Management Committee (OPRMC) which actively reviews and monitors risk management principles,
policies and risk management activities.

Category-wise quantitative break-up of Commodity derivative contracts entered into by the Corporation which are
Outstanding as at Balance Sheet date is given below:

40.B.3.4. Price risk

The Corporation’s exposure to equity investment has price risk. Such investments are designated at fair value through
Other Comprehensive Income, as these investments are held for long-term strategic purposes.

Sensitivity

The table below summarises the impact of increase/decrease in price:

40.B.3.5 Derivatives & Hedging

The Corporation enters into derivative contracts for hedging purpose, to mitigate the commodity price risk on Highly
probable forecast transactions and Currency Risk. The Corporation has applied Hedge Accounting on commodity
derivative transactions and foreign exchange forward derivatives as per Ind AS 109 (Financial Instruments). Consequent
to this a Mark to Market Debit / (Credit) amounting to ? (95.48) Crore [2023-24: ? (2.92) Crore] towards commodity
derivative transactions, has been accounted in Other Comprehensive Income which will be recycled to Statement of
Profit and Loss in subsequent period on settlement of respective contracts.

All these hedges are accounted for as Cash Flow Hedges.

Hedge Effectiveness

The Corporation has established a hedge ratio of 1:1 for the hedging relationship as the underlying risk of the commodity
derivative contracts are identical to the hedged risk component. Hedge item and the hedging instruments have economic
relationship as the terms of the commodity derivative contracts match with the terms of hedge items. Considering the
economic relationship and characteristics of the hedging instrument being aligned to the hedged item, the fair value
changes in the hedging instrument reasonably approximates the fair value changes in the hedged Item (in absolute
amounts).

Source of Hedge Ineffectiveness

The Corporation has identified the following sources of hedge ineffectiveness w.r.t commodity derivative contracts
which are not expected to be material as at date:

a) Counterparty Credit Risk impacting the fair value of the hedge instrument and hedge item.

b) Difference in the timing of the cash flows of the hedged items and the hedge instruments.

c) Different indexes used to hedge risk of the hedged item.

d) Changes to forecasted amounts of cash flows of hedged items and hedging instruments.

In case of foreign currency risk, the main source of hedge ineffectiveness is the effect of the counterparty and the
Corporation’s own credit risk on the fair value of the hedge contracts, which is not reflected in the fair value of the
hedged items. The effect of this is not expected to be material.

Disclosures of effects of Cash Flow Hedge Accounting

The Corporation has applied Hedge Accounting prospectively for the highly probable forecast transactions and
foreign exchange forwards as stated above. Consequently, disclosure is made only for the transactions designated for
Hedge Accounting.

*As of 31^st March 2014, Bhagyanagar Gas Limited (BGL) had a paid up equity capital of 7 5 lakhs, in which HPCL and GAIL were holding 24.99% each and
50% of shares were held by Kakinada Seaports Ltd (KSPL) on warehousing basis. In addition, HPCL and GAIL had paid 7 22.49 Crore each as Advance
against Equity / Share application money (totalling to 7 44.98 Crore). On 20^th August 2014, BGL allotted 2,24,87,500 shares on preferential basis to each
of HPCL and GAIL towards the money paid earlier, leading to increase in Corporation’s shareholding to 49.97%. KSPL had challenged this allotment in the
Company Law Board (CLB), Chennai Bench, which dismissed it on 14^th September 2014. Against this, KSPL moved the High Court, Telangana, which did not
stay the dismissal order of CLB. BGL has further allotted equity shares to HPCL, GAIL and KSPL during FY 2018-19. Further, pursuant to issuance of equity
shares during FY 2019-20 to Andhra Pradesh Industrial Infrastructure Corporation Limited, against land allotted earlier, Corporation’s shareholding in BGL
was reduced to 48.73%. Pending adjudication of the appeal by KSPL before the High Court, the shareholding was considered at 24.99% till 31^st March 2020.
However, taking all the facts into consideration, including receipt of dividend on the entire stake of 48.73% during financial year 2020-21 and the Articles
of Associations of BGL, the shareholding was being considered as at 48.73%, effective financial year 2020-21. During the current year, BGL has allotted
22,88,000 Shares of 7 10/- each to Telangana State Industrial Infrastructure Corporation for land allotted earlier, resulting into change in Corporation
shareholding from 48.73% to 47.51%, and thus, is being considered accordingly, effective FY 2024-25.

*HPCL Rajasthan Refinery Limited (HRRL), is a subsidiary of the Corporation as per Section 2(87) of the Companies Act, 2013. However, being a jointly
controlled entity of the Corporation and Govt. of Rajasthan, HRRL is considered as ‘Joint Venture’ of the Corporation, for the purpose of preparation of
Financial Statements, pursuant to the requirements of Indian Accounting Standards.

Ujjwala Plus Foundation, a joint venture of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL)
and Hindustan Petroleum Corporation Limited (HPCL) was incorporated on 21^st July 2017 as a not for profit Private Company,
Limited by Guarantee (Without Share Capital) under Section 8 of the Companies Act, 2013. The Board in its meeting held on
18^th July 2023 has accorded approval for the closure of Ujjwala Plus Foundation.

Note # 53.1

The Corporation with a Participating Interest(PI) of 60% along with Prize Petroleum Company Limited (PPCL), having a PI of
10% and M3nergy Sdn. Bhd (M/s M3nergy) having a PI of 30% were awarded service contract in March, 2006 for development
of ONGC’s offshore marginal oilfields of cluster-7. PPCL was the executing contractor. Parties provided necessary Bank
Guarantees to ONGC. Since M/s M3nergy could not meet their contractual obligations, the contract was terminated by
ONGC and Bank guarantees were forfeited. HPCL and PPCL demanded the refund of monies forfeited towards encashment
of Bank Guarantee along with other claims from M/s M3nergy. A counter claim of USD 36.51 Million was made by M3nergy
on termination of such service contract. The matter was referred to Arbitration.

The Arbitral Tribunal passed 3 Awards (09.01.2014, 27.09.2017, 15.06.2018 respectively), all were in favour of the Corporation
and PPCL. These Orders were to the effect that M3nergy had committed breach of the contract and hence their counter
claims were disallowed and that the Corporation and PPCL are entitled for damages with interest and costs of arbitration to
be borne by M3nergy. All the 3 Awards were challenged by M/s M3nergy before the Bombay High Court. However, there was
no stay granted by Bombay High Court, hence, HPCL/ PPCL filed applications for (a) Mareva Injunction and (b) Enforcement
of the Award before the Courts in Malaysia since M/s M3nergy is located in Malaysia.

By Orders dated 10.01.2019 the Hon’ble Bombay High Court set aside all three Arbitration Awards. As the Awards were set
aside (on the basis of which the enforcement application was filed by HPCL), on 28.02.2019 the Malaysian High Court at Kuala
Lumpur allowed the application of M/s M3nergy to set aside the enforcement order with liberty to file fresh proceedings,
if HPCL/ PPCL succeed later. Meanwhile, HPCL and PPCL have filed Appeals against the setting aside order (of Single Judge
Bombay High Court) before the Division Bench of the Bombay High Court. After hearing arguments of parties, on 16.10.2019,
the Hon’ble Bombay High Court set aside the Single Judge’s Order and remanded all the 3 matters back to the Single Judge
of the High Court, to decide the matter afresh on merits. This Order was challenged by M/s M3nergy before the Supreme
Court by filing Special Leave Petition (SLP) which, after brief arguments, was dismissed as withdrawn (by M/s M3nergy) on
31.01.2020. Accordingly, all 3 matters are being heard by Single Judge of Bombay High Court. The hearing has been concluded
for the matter related to Award dated 09.01.2014 (Partial Award 1) and is reserved for judgement. The other 2 matters will
be heard after passing of judgement in the matter related to Partial Award 1. The Corporation has also filed for execution of
the Arbitral Awards before the High Court in Malaysia and same is pending for hearing.

53.2. Corporation has entered into a long term product off take agreement with M/s HPCL- Mittal Energy Limited (HMEL), its joint
venture company, for purchase of petroleum products produced by the refinery. This agreement has a take or pay clause and
the Corporation is committed to purchase the said petroleum products over the tenure of the agreement.

53.3. In respect of certain Joint Venture/Associate Companies, the Corporation and other joint venture partners have committed
among others, that they would jointly hold at least 51% of share capital of such Joint Venture/Associate till the repayment
of certain bank loans / bonds for which letters of comfort have been issued in certain cases. Expected future outflow of
resources emanating out of approved plans on investment in Subsidiaries/Joint Ventures/Associates are not part of ‘Capital
Commitments’ unless investment calls are made as at period end.

53.4. Ministry of Environment, Forest and Climate Change (MoEFCC), Gol, had stipulated vide letter dated 31/01/2017 that at
least 2.5% of the total cost of Mumbai Refinery Expansion Project (MREP) shall be earmarked towards Enterprise Social
Commitment (ESR) based on Public Hearing issues, which works out to ? 134.5 Crore. Corporation has undertaken various
activities in line with the discussions held during the Public Hearing / meetings of Expert Appraisal Committee (EAC) of
MoEFCC, and an aggregate amount of ? 3.85 Crore incurred on such activities has been duly accounted for in the books of
account as on 31/03/2025.

Note: The above provisions are made based on estimates and expected timing of outflows is not ascertainable at this stage.

(a) Inter-Oil Company transactions are reconciled on a continuous basis. However, year end balances (including
trade payables / trade receivables) are subject to confirmation/reconciliation which is not likely to have a
material impact.

(b) Customer’s accounts are reconciled on an ongoing basis and such reconciliation is not likely to have a material
impact on the outstanding or classification of the accounts.

Impairment assessment as per the requirements of Ind AS 36 ‘Impairment of Assets’ has been carried out at period
end for all Cash-Generating Units (CGUs) by comparing their value-in-use (calculated based on certain assumptions,
on which auditors have relied upon) with the carrying value of assets under respective CGUs.

On the reporting date, the Corporation has an equity investment of ? 1,095.64 Crore (31.03.2024: ? 1,021.23 Crore) in
its wholly owned subsidiary, HPCL Biofuels Limited (HBL). Of this, an amount of ? 572.16 Crore has been impaired as
on 31.03.2025 (31.03.2024: ? 572.16 Crore). Considering the Government policy in promoting ethanol blended petrol
(subsidiary is engaged in production of ethanol) and business plans for the subsidiary, the current level of impairment
is considered appropriate in the opinion of the Management.

The Corporation has an equity investment of ? 268.27 Crore (31.03.2024: ? 251.27 Crore) in its wholly owned subsidiary,
Prize Petroleum Company Limited. In line with impairment testing carried out as per the provisions of Ind AS 36, during
the current year, an impairment loss of ? 17.00 Crore (2023-24 : ? 47.29 Crore) was provided for, resulting in carrying
value of the investment at ? Nil Crore (31.03.2024: ? Nil Crore).

The Corporation has an equity investment of ? 66.77 Crore in its Associate, GSPC India Transco Limited. The total
amount of impairment towards the carrying value of the investment stands at ? 14.00 Crore (31.03.2024: ? 14.00 Crore)
which was provided in financial year 2021-22. The said impairment is in line with the requirement of Ind AS 36 and is
based on the financial performance of the entity. In the opinion of the Management, the current level of impairment
is appropriate.

Prize Petroleum Company Ltd. (PPCL), a wholly-owned subsidiary, is the upstream arm of the Corporation in the
business of Exploration & Production (E&P) of hydrocarbons and management of E&P blocks. PPCL has a wholly-
owned subsidiary, Prize Petroleum International Pte Ltd. (PPIPL), which was incorporated in Singapore, as a part of
Corporation’s upstream strategy to have a balanced portfolio of E&P assets to serve the relatable business interest
of the Corporation and commercial expediency. Towards this, a loan of US $86 Million was availed by PPIPL during the
financial year 2016-17, for which a Corporate Guarantee (CG) was provided by the Corporation. The carrying value of the
obligation towards the said CG (on loan outstanding of US $79 Million) was re-measured under the provisions of Ind
AS 109 and an amount of ? Nil Crore (2023-24: ? 21.80 Crore) was provided for and accounted under ‘Other Expenses’.

The said loan outstanding was due for repayment during the FY 2023-24. In view of inability of PPIPL/PPCL to discharge
its obligations, the same was directly settled by the Corporation pursuant to CG given, by making payment of ? 678.63
Crore [which included interest due on maturity] to the lenders/agent, during FY 2023-24. Consequently, the carrying
value of obligation of ? Nil Crore (2023-24 : ? 678.63 Crore) was reversed and accounted for under ‘Other Expenses’.
Towards this, a receivable of ? 678.63 Crore from PPIPL was recognised on one hand during FY 2023-24, and was
simultaneously accounted for in ‘Other Expenses’ on the other hand, during the same year.

During April 2024, a tripartite Sale and Purchase Agreement (SPA) was entered into amongst PPIPL (Seller), Beach
Energy (Operations) Limited (Buyer), and the Corporation (Seller Guarantor) to divest Seller’s Participating Interest in
E&P Assets located in Australia w.e.f. 1^st July 2023, with inter-period adjustments. Under the SPA, a total consideration
of AUD 16.6 Million (~? 90 Crore), plus applicable taxes, was payable to the Buyer. This comprised of an upfront payment
of AUD 11.3 Million (~? 61 Crore), which has been discharged [net of Inter-period adjustments, applicable taxes etc.]
during the current year, and also the titles related to E&P assets, have been transferred to the Buyer. The balance
deferred payment of AUD 5.3 Million (~? 29 Crore, excluding applicable taxes) is contingent upon certain decisions
to be taken by the Buyer in future, and is duly guaranteed by the Corporation towards Seller’s performance under
the SPA. Further, to facilitate the discharge of obligations by PPIPL, Corporation has infused equity share capital of
? 17.00 Crore into PPCL during the current year and has provided for the impairment loss for the same, in accordance
with IndAS 36.

The Pradhan Mantri Ujjwala Yojana (PMUY) was launched in 2016 to provide LPG connections to women from below-
poverty-line (BPL) households. The beneficiary is given an option to avail loan from the respective OMCs to meet the
cost of the stove and first fill. This loan is to be recovered from the subsidy payable to the consumer on purchase of
the refill cylinder. The loan has been provided to 1.76 Crore PMUY consumers for an amount aggregating to ? 2,960.24
Crore (31.03.2024 : ? 2,960.24 Crore), and of this, ? 1,302.19 Crore (31.03.2024 : ? 1,427.43 Crore) is outstanding at period
end. The Loan is classified as ‘subsequently measured at amortized cost’ in the financial statements. The carrying
value of loan outstanding as at Balance Sheet date is re-measured based on revised estimates of future cash flows.
Such re-measurement has resulted in change in gross carrying amount of outstanding loan, net of interest unwinding,
by ? -59.11 Crore (FY 2023-24 : ? -66.73 Crore) during the year. Considering the cumulative re-measurement loss, net
of interest unwinding, amounting to ? 317.55 Crore (31.03.2024 : ? 376.66 Crore) and accounting of Deferred Expense
amounting to ? 528.29 Crore (net balance after amortisation as of 31.03.2025 is ? 244.07 Crore), the outstanding loan
at period end is carried in the books at ? 456.36 Crore (31.03.2024 : ? 522.48 Crore). Further, considering the consumption
pattern of refills, level of subsidies and consequential impact on repayment of the loan, by following the principles
of prudence and conservatism, a cumulative provision of ? 238.19 Crore (31.03.2024 : ? 326.07 Crore) net of reversal,
if any, is estimated and recognized in books. The reversal of provision during the year amounted to ? 87.88 Crore
(FY 2023-24: creation of a provision for ? 301.07 Crore) that arose primarily due to inactive customers turning active.
The expected credit loss estimate is reasonable.

A. Defined Contribution Plan
Superannuation Fund

The Corporation has Superannuation - Defined Contribution Scheme (DCS) maintained by ‘Superannuation Benefit Fund
Scheme (SBFS) Trust’ wherein Employer makes a monthly contribution of a certain percentage of ‘Basic Salary & Dearness
AUowance(DA)’, out of 30%, earmarked for various Superannuation benefits. This is in accordance with Department of Public
Enterprises (DPE) guidelines. These contributions are credited to individual Employee’s Account maintained either with Life
Insurance Corporation of India (LIC) or an optional National Pension Scheme (NPS) Account. For the financial year 2024-25,
the Corporation has made an overall contribution of ? 190.56 Crore (2023-24 : ? 190.57 Crore) towards Superannuation - DCS
[including ? 105.78 Crore (2023-24 : ? 90.44 Crore) to NPS] by charging it to the statement of Profit and Loss.

Employee Pension Scheme(EPS-95)

During the year, Corporation has recognised ? 6.67 crores (2023-24: ? 7.92 crores) as contribution to Employee Pension Scheme
(EPS-95) in the Statement of Profit and Loss.

B. Defined Benefit Plan
Provident Fund

Provident Fund is administered through a separate Trust, established for this purpose in accordance with The Employee
Provident Fund and Miscellaneous Provisions Act, 1952. The Corporation’s contribution to the Provident Fund is remitted to
this trust based on a fixed percentage of the eligible employee’s salary and charged to Statement of Profit and Loss. During
the year, the Corporation has recognized ? 168.94 Crore (2023-24: ? 168.97 Crore) as Employer’s contribution to Provident Fund
in the Statement of Profit and Loss.

Shortfall, if any, in matching the Government specified minimum rate of return, will be made good by the Corporation and
charged to Statement of Profit and Loss. During the year, the fund has been able to match the Government specified minimum
rate of return. The present value of benefit obligation at period end is ? 5,484.75 Crore (31.03.2024: ? 5,295.62 Crore). The fair
value of the plan assets of Provident Fund Trust at the period end is ? 5,421.71 Crores (31.03.2024: ? 5,269.40 Crores) resulting
in cumulative shortfall of ? 63.04 Crore (31.03.2024:? 26.22 Crores, accounted through Other Comprehensive Income). For the
current year, a shortfall of ? 31.94 Crore has been accounted through Other Comprehensive Income, and the balance has been
charged to the Statement of Profit and Loss, as applicable.

During the year, a provision of ? 0.66 Crores has been reversed [FY 2023-24 : an additional provision of ? 2.93 Crore was created]
towards reduction in losses/losses on defaulted investments.The initial provision was created in FY 2019-20.

Pursuant to paragraph 57 of Ind AS 19, accounting by an entity for defined benefit plans, inter-aLia, involves determining the
amount of the net defined benefit liability (asset) which shall be adjusted for any effect of limiting a net defined benefit
asset to the asset ceiling prescribed in paragraph 64. As per Para 64 of Ind AS 19, in case of surplus in a defined benefit
plan, an entity shall measure the net defined benefit asset at the lower of actual surplus or the value of the assets ceiling
determined using the discount rate. The asset ceiling is the present value of any economic benefits available in the form of
refunds from the plan or reductions in future contributions to the plan. Further, paragraph 65 provides that a net defined
benefit asset may arise where a defined benefit plan has been overfunded or where actuarial gains have arisen.

As per the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the Company has no right
to the benefits either in the form of refund from the plan or lower future contribution to the plan towards the net surplus of
? 16.99 crore (31.03.2024: ? 28.75 crore) determined through actuarial valuation. Accordingly, Company has not recognised the
surplus as an asset, and the remeasurement loss /gains in ‘Other Comprehensive Income’, as these pertain to the Provident
Fund Trust and not to the Company.

H. Notes

I. Gratuity Each employee rendering continuous service of 5 Years or more is entitled to receive gratuity amount equal
to 15/26 of the eligible salary for every completed years of service subject to maximum of ? 0.20 crore at the time of
separation from the Corporation. Besides the ceiling, gratuity increases by 25% whenever IDA rises by 50%. The long
term employee benefit of Gratuity is administered through a Trust, established under The Payment of Gratuity Act, 1972.
The Board of Trustees comprises of representatives from the Employer who are also plan participants in accordance
with the plans regulation. The liability towards gratuity is funded with Life Insurance Companies.

II. Pension: The employees covered by the Pension Plan of the Corporation are entitled to receive monthly pension for
life. However, none of the current serving employees are covered under Pension Plan of the Corporation.

III. Post Retirement Medical Benefit (PRMBS): Post Retirement Benefit medical scheme provides medical benefit to
retired employees and eligible dependent family members. This long term employee benefit is administered through a
Trust. The liability towards Post-Retirement Medical Benefit for employees is ascertained, yearly, based on the actuarial
valuation and funded to the Trust.

IV. Ex-gratia: The ex-employees of Corporation are covered under the Scheme, entitling to get ex-gratia, determined based
on their salary grade at the time of their superannuation. The benefit is paid to eligible employees till their survival, and
thereafter till the survival of their spouse. However, none of the current serving employees are covered under this Plan.

V. Resettlement Allowance: Upon superannuation from the services of the Corporation, there are employees who
permanently settle down at a place other than the location of the last posting. Such employees are provided with
resettlement allowance as per policy of the Corporation.

VI. Felicitation Scheme: During the year, the Corporation introduced a scheme to felicitate superannuated employees
with a token lumpsum amount to honor their long and dedicated service ,on reaching certain age-related milestones.

VII. Others The expected return on plan assets is based on market expectation over the entire life of the related obligation.
The actuarial assumption with regard to future salary escalation takes into consideration, the factors such as inflation,
seniority, promotion, demand & supply in the employment market.

VIII. Figures in italics represent last year figures.

As on 31.03.2025, the Corporation has no inventory of Non-Solar Renewable Energy Certificates (RECs) (31.03.2024:
Nil Units), available for sale after earmarking a requisite quantity already for captive consumption.Traded in Indian
Energy Exchange Ltd., the revenue from RECs is recognized as and when the same are sold.

As on 31.03.2025, there are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the
related parties either severally or jointly with any other person that are repayable on demand (or, without specifying
any terms or period of repayment). Further, during the current year, Corporation has executed an amendment to the
‘Facility agreement for inter-corporate subordinated loan’ entered during FY 2023-24 with HPCL Rajasthan Refinery
Limited (HRRL), to disburse an interest bearing subordinated loan of upto ? 5,500 Crore [? 3,000 Crore approved vide
original agreement], to meet HRRL’s project expenditure [Govt. of India’s approval is awaited for equity infusion into
HRRL by the Corporation, beyond the currently approved limit]. Towards these, as of 31.03.2025, a sum of ? 4,325
Crore (31.03.2024 : ? 500 Crore) has been disbursed to HRRL, which would be repayable by way of issue of equivalent
amount of Equity Shares to the Corporation. Apart from the loan amount, as of 31.03.2025, an interest amount (net
of TDS) of ? 186.34 Crore (31.03.2024 : ? 0.44 Crore) is outstanding. The details are as under:

72 Other Disclosures

72.1. The Quarterly returns / statements of the first 3 quarters of the current financial year with respect to current assets
(Inventories) filed with banks / financial institutions for the financial year 2024-25 are in agreement with the books of accounts.
The return for the 4^th quarter, being price sensitive information, will be filed after declaration of annual results.

72.2. Compliance with number of layers of companies as per Clause 87 of Section 2 of the Companies Act, 2013 read with Companies
(Restriction on number of Layers) Rules, 2017 is not applicable for Government Companies.

72.3. There have not been any revaluation of Property, Plant & Equipment and Intangible Assets.

72.4. The borrowings from banks and financial institutions were used for the purpose for which it was taken.

72.5. There are no proceedings initiated or pending for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and rules made thereunder.

72.6. No Bank or financial institution or other lender has declared the Corporation as willful defaulter.

72.7. There are no Charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory / stipulated period.

72.8. There are no pending applications with any authority for a scheme of arrangement in terms of sections 230 to 237 of the
Companies Act, 2013.

72.9. To the best of knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Corporation
(Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

To the best of knowledge and belief, no funds have been received from any person or entity, including foreign entity (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, to directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiary”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

72.10. There are no unrecorded transactions, which have been surrendered or disclosed as Income during the year in the tax
assessments under the Income tax act, 1961.

72.11. There are no trading entered into or investments made in Crypto Currency or Virtual Currency during the year.

₇₃

Previous periods figures are regrouped wherever necessary.

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER
SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF
HINDUSTAN PETROLEUM CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2025

The preparation of financial statements of Hindustan Petroleum Corporation Limited for the year ended 31 March 2025
in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the
management of the company. The statutory auditor appointed by the Comptroller and Auditor General of India under section 139(5)
of the Act is responsible for expressing opinion on the financial statements under section 143 of the Act based on independent
audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done
by them vide their Audit Report dated 06 May 2025.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial
statements of Hindustan Petroleum Corporation Limited for the year ended 31 March 2025 under section 143(6)(a) of the Act.
This supplementary audit has been carried out independently without access to the working papers of the statutory auditors
and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the
accounting records.

Based on my supplementary audit nothing significant has come to my knowledge which would give rise to any comment
upon or supplement to statutory auditors’ report under section 143(6)(b) of the Act.

For and on behalf of the

Comptroller & Auditor General of India

Sd/-

Place : Mumbai Biren D. Parmar

Date : 11 July 2025 Director General of Commercial Audit, Mumbai