1.17. Provisions, Contingent Liabilities and Capital Commitments

1.17.1. Provisions are recognized when there is a present obligation (legal or constructive) 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.

1.17.2. The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.

1.17.3. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

1.17.4. Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly
within the control of the Corporation, or present obligations where it is not probable that an outflow of resources
will be required or the amount of the obligation cannot be measured with sufficient reliability.

1.17.5. Contingent liabilities are not recognized in the Financial Statements but are disclosed unless the possibility of an
outflow of economic resources is considered remote.

1.17.6. Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above the
threshold limit.

1.18. Fair Value measurement

1.18.1. The Corporation measures certain financial instruments at fair value at each reporting date.

1.18.2. Certain accounting policies and disclosures require the measurement of fair values, for both financial and non¬
financial assets and liabilities.

1.18.3. Fair value is the price that would be received to sell an asset or paid to transfer a liability 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.

1.18.4. The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price
- i.e. the fair value of the consideration given or received. If the Corporation determines that the fair value on initial
recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active
market for an identical asset or liability nor based on a valuation technique that uses only data from observable
markets, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the
fair value on initial recognition and the transaction price. Subsequently that difference is recognized in Statement of
Profit and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly
supported by observable market data or the transaction is closed out.

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

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices)

• Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs)

1.18.6. When quoted price in active market for an instrument is available, the Corporation measures the fair value of the
instrument using that price. A market is regarded as active if transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.

1.18.7. If there is no quoted price in an active market, then the Corporation uses valuation techniques that maximise the
use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique
incorporates all of the factors that market participants would take into account in pricing a transaction.

1.18.8. The Corporation regularly reviews significant unobservable inputs and valuation adjustments. If the third party
information, such as broker quotes or pricing services, is used to measure fair values, then the Corporation assesses
the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements
of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

1.19. Financial Assets

1.19.1. Initial recognition and measurement

Trade Receivables are initially recognized when they are originated. All other financial assets are initially recognized
when the Corporation becomes a party to the contractual provisions of the instrument. All financial assets are
recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss
(FVTPL), 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.

1.19.2. Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based
on the business model for managing the financial assets and the contractual cash flow characteristics of the financial
asset, the Corporation classifies financial assets as subsequently measured at amortized cost, fair value through
Other Comprehensive Income or fair value through profit or loss.

Debt instruments at amortized cost

A 'debt instrument' is measured at the amortized 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 measurement, such financial assets are subsequently measured at amortized cost using the Effective
Interest Rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium and fees
or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the Statement of
Profit and Loss. The losses arising from impairment are recognized in the Statement of Profit and Loss.

If there is revision in estimates of receipts/contractual cash flows, gross carrying amount of the financial assets are
recalculated at period end as the present value of the estimated future contractual cash flows that are discounted
at the financial asset's original effective interest rate due to revision in estimates of receipts. Adjustment, if any, is
recognised as income or expense in Statement of Profit and Loss.

Debt instruments at Fair value through Other Comprehensive Income (FVOCI)

A 'debt instrument' is measured at the fair value through Other Comprehensive Income if both the following
conditions are met:

The asset is held within a business model whose objective is achieved by both

• collecting contractual cash flows and selling financial assets and

• contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal
amount outstanding.

After initial measurement, these assets are subsequently measured at fair value. Interest income under Effective
Interest method, foreign exchange gains and losses and impairment losses are recognized in the Statement of Profit
and Loss. Other net gains and losses are recognized in Other Comprehensive Income.

Debt instruments at Fair value through Profit or Loss (FVTPL)

Fair Value through Profit or Loss is a residual category for debt instruments. Any debt instrument, which does not
meet the criteria for categorization at amortized cost or as FVOCI, is classified as FVTPL.

After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses,
impairment losses and other net gains and losses are recognized in the Statement of Profit and Loss separately.

Equity investments

All equity investments within the scope of Ind AS 109 are measured at fair value. Such equity instruments which are
held for trading are classified as FVTPL. For all other such equity instruments, the Corporation decides to classify
the same either as 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). Dividends on such equity instruments are recognized in the
Statement of Profit and Loss.

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

1.19.3. De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognized (i.e. removed from the Corporation's Balance Sheet) when:

The rights to receive cash flows from the asset have expired, or

The Corporation has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either:

• The Corporation has transferred substantially all the risks and rewards of the asset, or

• The Corporation has neither transferred nor retained substantially all the risks and rewards of the asset but has
transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI)
and equity instruments (measured at FVTPL) are recognized in the Statement of Profit and Loss. Gains and losses
in respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or loss
on de-recognition. Gains or losses on equity instruments measured at FVOCI that are recognized and accumulated
in OCI are not reclassified to profit or loss on de-recognition.

1.19.4. 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 amortized cost and debt instruments measured
at FVOCI.

Loss allowances on receivables from customers are measured following the 'simplified approach' at an amount
equal to the lifetime ECL at each reporting date. In respect of other financial assets such as loan to LPG Consumers,
debt securities and bank balances, the loss allowance is measured at 12-month ECL only if there is no significant
deterioration in the credit risk since initial recognition of the asset or asset is determined to have a low credit risk at
the reporting date.

1.20. Financial Liabilities

1.20.1.Initial recognition and measurement

Financial liabilities are initially recognized when the Corporation becomes a party to the contractual provisions of
the instrument.

Financial liability is initially measured at fair value minus, for an item not at fair value through profit and loss, transaction
costs that are directly attributable to its acquisition or issue.

1.20.2.Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial liabilities.
Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

A financial liability is classified as at Fair Value through Profit or Loss (FVTPL) if it is classified as held-for-trading or is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and changes therein,
including any interest expense, are recognized in Statement of Profit and Loss.

Financial Liabilities at amortized cost

After initial recognition, financial liabilities other than those which are classified as FVTPL are subsequently measured
at amortized cost using the Effective Interest Rate ("EIR") method.

Amortized cost is calculated by taking into account any discount or premium and fees or costs that are an integral
part of the EIR. The amortization done using the EIR method is included as finance costs in the Statement of Profit
and Loss.

1.20.3. De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition
of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognized in the Statement of Profit and Loss.

1.21. Financial guarantees

Financial guarantee contracts issued by the Corporation are those contracts that require a payment to be made to
reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance
with the terms of the debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value,
adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, 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 recognized less cumulative amortization.

1.22. Derivative financial instruments

The Corporation uses derivative financial instruments to manage the commodity price risk and exposure on account of
fluctuation in interest rate and foreign exchange rates. Such derivative financial instruments are initially recognized at
fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value with the
changes being recognized in the Statement of Profit and Loss. Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.

The fair valuation gains or losses on foreign currency derivatives measured at FVTPL are grouped along with Gain or loss on
foreign currency transactions and translations and presented under "Other Income" or "Other expenses", as the case may
be, since these derivatives constitute hedges from an economic perspective and may not qualify for hedge accounting
under Ind AS 109.

1.23. 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 recognized amounts and there is an intention to settle on a net basis, or to realize the
assets and settle the liabilities simultaneously.

1.24. Taxes on Income

1.24.1. Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, by the end of reporting period.

Current Tax items are recognized in correlation to the underlying transaction either in the Statement of Profit
and Loss, Other Comprehensive income or directly in equity.

1.24.2. Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively
enacted at the reporting date.

Deferred Tax items are recognized in correlation to the underlying transaction either in the Statement of Profit
and Loss, Other Comprehensive Income or directly in equity.

1.25. Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non-current as per the Corporation's normal operating cycle (considered
as 12 months) and other criteria set out in Schedule III of the Act.

1.26. Cash and Cash equivalents

Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits
with an original maturity of upto three months, which are subject to an insignificant risk of changes in value.

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheques and drafts on
hand, net of outstanding bank overdrafts as they are considered an integral part of the Corporation's cash management.
The Corporation considers all highly liquid investments with a remaining maturity at the date of purchase of three months
or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.27. 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.

Additional information in respect of Notes 2 to 6:

a) Freehold land includes I 4.63 Crore (Previous year I 4.63 Crore) which, not being in the Corporation's possession and being
under dispute, has been provided for in books of accounts.

b) Buildings include Ownership Flats having gross block of I 50.21 Crore (Previous year I 48.09 Crore) in proposed/existing co¬
operative societies and others.

c) The Corporation has elected to continue the policy adopted under Previous GAAP for accounting the foreign exchange
differences arising on settlement or translation of long-term foreign currency monetary items outstanding as of March 31,
2016 i.e. foreign exchange differences arising on settlement or translation of long-term foreign currency monetary items
relating to acquisition of depreciable assets are adjusted to the carrying cost of the assets and depreciated over the balance
life of the asset. Accordingly, "Other adjustments" include de-capitalization of foreign exchange differences (net) of I 35.86
Crore (Previous year capitalization of I 110.32 Crore).

d) Additions include capitalization of borrowing costs of I 43.11 Crore (Previous year: Nil).

e) Freehold Land, Plant and Equipment, Tanks and Pipelines, Railway Sidings, Buildings etc. jointly owned in varying extent with
other Oil Companies/Railways/Port Trust: Gross Block I972.88 Crore (Previous year I 956.86 Crore), Cumulative Depreciation
I280.82 Crore (Previous year I242.61 Crore), Net Block I692.06 Crore (Previous year I 714.25 Crore). Further CWIP includes
I 198.68 Crore (Previous year I 115.75 Crore) on account of projects being executed jointly.

f) A charge has been created over the project assets pertaining to 2G Ethanol Bio-Refinery project at Bargarh in favor of Centre
for High Technology (CHT), a society under the administrative control of MoPNG towards the financial assistance of I75 Crore
received from CHT.

g) A charge has been created on project assets (including CWIP) related to Bina Petrochemical and Refinery Expansion Project
(BPREP) at Bina in favour of consortium of banks towards Project Finance tied up (Refer note no. 25).

h) Compensation from third parties in respect of items of Property, Plant and Equipment/Capital work in progress that were
impaired, lost or given up during the year included in Statement of Profit and Loss is I 4.60 Crore (Previous year I 1.70 Crore).

Pursuant to Ministry of Corporate Affairs (MCA) orders sanctioning the Scheme of Amalgamation of erstwhile subsidiaries BORL
and BGRL, received by the Corporation on 22^nd June 2022 and 8^th August 2022 respectively, assets of erstwhile subsidiaries
have been vested and amalgamated in the books of the Corporation and accounted as per Ind AS 103 "Business Combination".
The process of updating the name of the Corporation in respect of immovable properties of erstwhile subsidiaries BORL and
BGRL is in progress.

For the purpose of this disclosure, other substantive evidences such as allotment letters, Court orders, noting in municipal/
revenue records, property tax receipts etc. conveying title to the Corporation over the property has been taken into consideration.

Pursuant to Ministry of Corporate Affairs (MCA) orders sanctioning the Scheme of Amalgamation of erstwhile subsidiaries BORL
and BGRL, received by the Corporation on 22^nd June 2022 and 8^th August 2022 respectively, assets of erstwhile subsidiaries
have been vested and amalgamated in the books of the Corporation and accounted as per Ind AS 103 "Business Combination".
The process of updating the name of the Corporation in respect of immovable properties of erstwhile subsidiaries BORL and
BGRL is in progress.

For the purpose of this disclosure, other substantive evidences such as allotment letters, Court orders, noting in municipal/
revenue records, property tax receipts etc. conveying title to the Corporation over the property has been taken into consideration.

Nature and purpose of reserves

Capital reserve

It represents Capital Reserve appearing in the Financial Statements of erstwhile Kochi Refineries Limited (KRL) transferred on
amalgamation and difference between the Investment made in Petronet CCK Limited (PCCKL) and the Share Capital received
during the acquisition when the first time control was obtained.

General Reserve

General Reserve represents appropriation of Retained Earnings and are available for distribution to Shareholders.

Securities Premium

The amount received in excess of the par value adjusted with additional cost of Equity Shares, if any, has been classified as Securities
Premium. The same can be utilised for issuance of Bonus Shares, charging off Equity related expenses,etc.

Reserve on Business Combination

Reserve on Business Combination represents re-measurement gain recognized in the consolidated financial statements on
acquisition of Bharat Oman Refineries Limited, subsequently recorded in Standalone Financial Statements on its merger with
the Corporation.

Retained Earnings

Retained Earnings (excluding accumulated balance of remeasurements of Defined Benefit Plans (Net of Tax)) represents surplus/
accumulated earnings of the Corporation and are available for distribution to Shareholders.

Equity Instruments through Other Comprehensive Income

This reserve represents the cumulative effect of fair value fluctuations of investments made by the company in equity instruments
of other entities. The cumulative gain or loss arising on such changes are recognised through Other Comprehensive Income (OCI)
and accumulated under this reserve. This will not be re-classified to the statement of profit and loss in subsequent periods.

Note 44

BORL was incorporated in 1994 as a Joint Venture between the Corporation and OQ S.A.O.C. (formerly known as Oman Oil Company
S.A.O.C.). BORL was mainly engaged in the business of refining crude oil to produce and supply various petroleum products.

The Corporation held 63.38% stake in BORL (i.e. 1,53,82,16,114 Equity Shares) as on 1^st April 2021 and additionally acquired balance
36.62% of Equity Shares (i.e. 88,86,13,336 equity shares) in BORL vide a Share Purchase Agreement (SPA) with Joint Venture Partner
OQ S.A.O.C. (formerly known as Oman Oil Company S.A.O.C.) ("OQ") on 30^th June 2021, for a consideration of I 2,399.26 Crore. By
way of this transaction, BORL became wholly owned subsidiary of the Corporation.

Further, the Corporation acquired the remaining share warrants of BORL, held by Government of Madhya Pradesh, for a consideration
of I 72.65 Crore (including Stamp Duty).

As per the requirement of Ind AS 103, the Corporation, in the Consolidated Financial Statements for FY 2021-22, has recognised
a gain on remeasurement of Investment held prior to above acquisition of I 1,720.13 Crore as an Exceptional Item and Goodwill of
I 1,203.98 Crore on account of change in control.

Subsequently, the Board of Directors of the Corporation, at their meeting held on 22^nd October 2021 approved the Scheme of
Amalgamation (BORL Scheme) for merger of BORL with the Corporation. Application seeking approval of the BORL Scheme was
subsequently filed with Ministry of Corporate Affairs, New Delhi. The copy of order sanctioning the BORL Scheme was received by
the Corporation on 22^nd June 2022 and upon filing the same with Registrar of Companies on 1^st July 2022, BORL stands merged
with the Corporation. The BORL Scheme has become effective from the appointed date of 1^st October 2021.

The Corporation has recorded all the assets, liabilities and reserves of BORL vested in it pursuant to the merger scheme by
applying the principles as set out in Appendix C of IND AS 103 'Business Combinations' and prescribed under Companies (Indian
Accounting Standards) Rules, 2015 issued by the Institute of Chartered Accountants of India. Accordingly, the Standalone Financial
Statements for FY 2021-22 of the Corporation have been restated, on account of BORL merger from the date of obtaining control i.e.
30^th June 2021.

Note 45

As per the scheme of amalgamation of the erstwhile Kochi Refineries Limited (KRL) with the Corporation approved by the
Government of India, 3,37,28,737 equity shares of the Corporation were allotted (in lieu of the shares held by the Corporation in
the erstwhile KRL) to a Trust ("BPCL Trust for Investment in Shares") for the benefit of the Corporation in the Financial Year 2006-07.

The cost of the original investment together with the additional contribution to the corpus of above trust have been reduced from
"Paid-up Share Capital" to the extent of face value of the shares and from "Other Equity" under separate reserves for the balance
amount. The income received from "BPCL Trust for Investment in Shares" has been recognized directly under "Other Equity".

As on March 31, 2024 "BPCL Trust for Investment in Shares" held 3,29,60,307 equity shares of the Corporation. During FY 2024-25,
the Corporation had issued Bonus Equity Shares in the proportion of 1 (One) Bonus Equity Share of I 10/- each for every 1 (One)
existing ordinary equity share of I 10/- each. Accordingly the details of shares held by "BPCL Trust for Investment in Shares" and its
corresponding cost adjustment in Total Equity is as under:

Note 46

The Corporation has numerous transactions with other oil companies. The outstanding balances (included under Trade Payables/
Trade Receivables, etc.) to/from them and certain other outstanding credit and debit balances are subject to confirmation/
reconciliation. Adjustments, if any, arising therefrom are not likely to be material on settlement and are accounted as and when
ascertained."

Note 48 SERVICE CONCESSION ARRANGEMENTS

The Corporation has entered into service concession arrangements with entities supplying electricity ("The Regulator") to construct,
own, operate and maintain a wind energy based electric power generating station ("Plant").

Under the terms of agreement, the Corporation will operate and maintain the Plant and sell electricity generated to the Regulator
for a period which covers the substantial useful life of the Plant which may be renewed for such further period as may be mutually
agreed upon between the parties. The Corporation will be responsible for any maintenance services during the concession period.

The Corporation in turn has the right to charge the Regulator agreed rate as stated in the service concession arrangement.

The fair value towards the construction of the Plant has been recognized as an Intangible Asset and is amortized over the useful life
of the asset or period of contract whichever is less.

Note 50 EMPLOYEE BENEFITS
Post Employment Benefit Plans:

1. Defined Contribution Scheme

Defined Contribution Scheme (DCS) was introduced effective January 1, 2007 and a defined percentage of the salary of
eligible employees out of their total entitlements on account of superannuation benefits is contributed by the Corporation
towards the same. A portion of upto 10% of the salary of the eligible employees is currently being contributed to GOI managed
PFRDA (Pension Fund Regulatory and Development Authority) National Pension Scheme (NPS) and the balance is being
contributed to separate Trusts managed by the Corporation. During the year, the Corporation has recognized K 430.69 Crore
(I 29.03 Crore in FY 24-25) in the Statement of Profit & Loss.

2. Defined Benefit Plans

The Corporation has the following Defined Benefit Plans:-
Gratuity:

The Corporation has a Defined Benefit Gratuity plan managed by a Trust. Trustees administer the contributions made to the
Trust, investments thereof etc. Based on actuarial valuation, the contribution is paid to the trust which is invested in plan assets
as per the investment pattern prescribed by the Government. Gratuity is paid to a staff member who has put in a minimum
qualifying period of 5 years of continuous service, on superannuation, resignation, termination or to his nominee on death.
Further, the qualifying period is considered as 1 year for Fixed Term Employees."

Other Defined Benefits include:

(a) Post Retirement Medical Scheme (managed by a Trust) for eligible employees, their spouse, dependent children and
dependent parents;

(b) Pension/Ex-Gratia scheme to the retired employees who are entitled to receive the monthly pension/ex-gratia for life;

(c) Death in service/Permanent Disablement benefit given to the spouse of the employee/employee, provided the deceased's
family/disabled employee deposits with the Corporation, retirement dues such as Provident Fund, Gratuity, Leave
Encashment etc., payable to them;

(d) Resettlement allowance paid to employees to permanently settle down at the time of retirement;

(e) Felicitation benefits to retired employees on reaching the age related milestones; and

(f) The Corporation's contribution to the Provident Fund is remitted to a separate trust (which is administered by the trustees),
established for this purpose based on a fixed percentage of the eligible employees' salary and charged to Statement of
Profit and Loss. The Corporation has an obligation to fund any shortfall on the yield of the trust's investments over the
interest rates declared by the Government under EPF scheme. Shortfall, if any, in the fund's revenues based on the EPFO
specified rate of return, will need to be made good by the Corporation and is charged to Statement of Profit and Loss.
During the year, the fund has been able to match the Government specified minimum rate of return. At period end, present
value of fund's defined benefit obligation is more than the fair value of plan assets resulting in cumulative shortfall of
K 67.77 Crore and the same has been charged to Other Comprehensive Income. During FY 2025-26, there was no full/

partial settlement of the defaulted securities (against which provisions were created in earlier periods). Accordingly, the
provision against such defaulted securities as on March 31, 2026 is K 85.97 Crore (I 85.97 Crore as on March 31, 2025).
Against the said provision, advance given by the Corporation to the Trust stands at K 80.37 Crore as on March 31, 2026
(I 80.37 Crore as on March 31, 2025).

These defined benefit plans expose the Corporation to actuarial risks, such as longevity risk, interest rate risk, and market
(investment) risk.

The Government of India has notified four Labour Codes - namely the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020
- with effect from November 21, 2025, which consolidates 29 existing labour laws. Based on the available information as
at reporting date, no material liability is envisaged in this regard. The Corporation continues to monitor the development
regarding labour codes/rules and would provide appropriate accounting effect on the basis of such developments as
needed.

The outstanding balances are unsecured (except Loans and guarantees outstanding) and are being settled in cash except advance
against equities which are settled in equity.

d) The Corporation enters into transactions with other Government controlled entities (not included in the list above) inter-
alia with respect to the following:

• Sales and purchases of goods and ancillary materials;

• Rendering and receiving of services;

• Receipt of dividends;

• Loans and advances;

• Depositing and borrowing money;

• Guarantees; and

• Uses of public utilities.

These transactions are conducted in the ordinary course of business on terms comparable to those with other entities that are
not government controlled entities.

Note 55 ENERGY SAVING CERTIFICATES (ESCERTS)

As at March 31, 2026, the Corporation holds 2,06,937 Nos. (Previous year 2,06,937 Nos.) of ESCerts awarded by Bureau of Energy
Efficiency (BEE) in FY 2021-22 as part of "Performance, Achieve & Trade" (PAT) scheme, India for achieving reduction in Specific
Energy Consumption above targets set by them for the performance during FY 2018-19. These can be redeemed to meet refineries'
own shortfall (if any) or can be used as tradable certificates which can be sold through power exchanges. According to the Indian
Energy Exchange's market fluctuations, current values of ESCerts are volatile. Considering unascertainability of cost of ESCerts
since such cost cannot be derived directly, the same has not been carried in inventory.

Note 56 IMPAIRMENT OF ASSETS

The Corporation assesses at each reporting date, whether there is an indication for impairment of assets. The Corporation takes into
consideration external and internal sources of information available about the asset to check whether any indication for impairment
exists. If any such indication exists, the Corporation estimates the recoverable amount of the asset. The recoverable amount is the
higher of an asset's fair value less cost of disposal and value in use. The value in use is assessed based on the estimated future cash
flows which are discounted to their present value using the discount rate that reflects the time value of money and risk specific to
the assets for which the future cash flows estimates have not been adjusted. An impairment loss is recognized in the Statement of
Profit and Loss to the extent asset's carrying amount exceeds its recoverable amount.

Based on the assessment, there is no indication of impairment of assets except as mentioned below:

(i) Impairment of Investment in Subsidiary

Impairment testing was conducted for the Corporation's investments in subsidiary company Bharat PetroResources Limited
(BPRL).The gross carrying value of investment in BPRL as of March 31, 2026 is K 15,426.37 Crore (Previous year I 13,176.37
Crore). BPRL is an upstream company and is having investments in Oil and Gas Blocks globally and in India, either directly or
through its Subsidiaries (including step down Subsidiaries), Joint ventures and Associates. During the current financial year,
BPRL has impaired investments in its subsidiary company due to change in prospects of its blocks. Accordingly, impairment
testing was carried out on equity investment made by the Corporation in BPRL and an impairment loss of K 4,349.13 Crore
(Previous year I 1,773.93 Crore) has been recognized based on the value in use of assets as on March 31, 2026. Such impairment
loss is shown as an exceptional item in Statement of Profit and Loss for the year ended March 31, 2026.The accumulated
impairment loss on investments in BPRL as of March 31, 2026 is K 11,313.83 Crore (Previous year I 6,964.70 Crore).

(ii) Impairment of Investment in JVs/Associates

a) The Corporation has an equity investment of K 66.77 Crore in its Associate, GSPL India Transco Limited, which is engaged
in the business of Natural Gas transmission in India. Considering the projected financial performance of its assets, and
based on the impairment assessment carried out in accordance with Ind AS 36, an impairment loss of K 39.80 Crore
(Previous year: Nil) has been recognised during the year, taking the aggregate impairment as on March 31, 2026 to
K 53.88 Crore (Previous year: I 14.08 Crore)

(b) The Corporation has an equity investment of K 50.00 Crore in its Joint Venture, Ratnagiri Refinery and Petrochemicals
Limited, which was incorporated in the year 2017 to set-up a refinery and petrochemical complex along the west coast of
India in the State of Maharashtra. Considering the current state of the project development \ progress, and based on the
impairment assessment carried out in accordance with Ind AS 36, an impairment loss of K 25.20 Crore (Previous year: Nil)
has been recognised during the year, taking the aggregate impairment as on March 31, 2026 to K 25.20 Crore (Previous
year: Nil)

c) The Corporation has an equity investment of I 750.12 Crore in its Joint Venture, Kochi Salem Pipeline Private Limited,
which is engaged in the business of Transmission of LPG in India. Considering the projected financial performance of its
assets, and based on the impairment assessment carried out in accordance with Ind AS 36, an impairment loss of K 113.97
Crore (Previous year: Nil) has been recognised during the year, taking the aggregate impairment as on March 31, 2026 to
K 113.97 Crore (Previous year: Nil)

(iii) Impairment of Cash Generating Unit(CGU)

2G 1G Bio-Ethanol Plant at Bargarh (Odisha), designed to produce fuel-grade ethanol from rice straw biomass and rice grain,
is a 'Cash-Generating Unit' (CGU) with the carrying amount of K 1,448.03 Crore as on March 31, 2026. Considering the
change in production ramp-up profile, impairment testing has been carried out in accordance with Ind AS 36. Based on the
fair value assessment, an impairment loss of K 298.77 Crore (I 294.44 Crore towards Property, Plant and Equipment, I 2.25
Crore towards Capital Work-in-Progress, I 2.08 Crore towards Intangible Assets) has been charged to Statement of Profit and
Loss during the year.

C. Financial risk managementRisk management framework

The Corporation's Board of Directors has overall responsibility for the establishment and for overseeing of the Corporation's risk
management framework. The Risk Management Committee of the Board has defined roles and responsibilities, which includes
reviewing and recommending the risk management plan and the risk management report for approval of the Board with the
recommendation of the Audit Committee. The Corporation has adopted a Risk Management Charter and Policy for self-regulatory
processes and procedures for ensuring the conduct of the business in a risk conscious manner.

The Corporation has exposure to the following risks arising from financial instruments:

i. Credit risk ;

ii. Liquidity risk ; and

iii. Market risk

C.i. 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 its
contractual obligations, and arises principally from the Corporation's trade and other receivables, cash and cash equivalents and
other bank balances, derivatives and debt securities. The maximum exposure to credit risk in case of all the financial instruments
covered below is restricted to their respective carrying amount.

(a) Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and
monitoring the creditworthiness of customers to whom the Corporation grants credit terms in the normal course of business.

As at March 31, 2026 and March 31, 2025, the Corporation's retail dealers, industrial and aviation customers accounted for
the majority of the trade receivables.

Expected credit loss assessment for trade and other receivables from customers as at March 31, 2026 and March 31, 2025

The Corporation uses an allowance matrix to measure the expected credit losses of trade and other receivables.

The loss rates are computed using a 'Roll Rate' method based on the probability of receivable progressing through successive
stages of delinquency to write off. Roll rates are calculated separately for exposures in different segments based on the
following common credit risk characteristics - type of product purchases, type of customers.

The following table provides information about the exposure to credit risk and expected credit loss allowance for trade and
other receivables:

(b) PMUY and Other Loans

As per the Government of India's scheme - Pradhan Mantri Ujjwala Yojana (PMUY), the Corporation has given interest free
loans to PMUY customers towards cost of hot plate and 1^st refill, which is to be recovered from the subsidy amount payable to
customer when such customers book refill. During the year, the Corporation has recalculated gross carrying amount of the loans
at period end at the present value of the estimated future contractual cash flows discounted at the original effective interest
rate due to revision in estimates of receipts based on projections of subsidy amount per refill. Accordingly, the gross carrying
amount of the loans has been decreased by K 1.59 Crore (Previous year: increase by I 12.91 Crore) with a corresponding
recognition of expense in the Statement of Profit and Loss.

The Corporation assesses the credit risks/significant increases in credit risk on an ongoing basis throughout each reporting
period. For determining the expected credit loss on such loans, the Corporation considers the time elapsed since the last refill
for determining probability of default on collective basis. Accordingly, the expected credit loss of K 233.27 Crore (Previous
year: I 231.48 Crore) has been recognized on carrying amount of K 436.42 Crore (Previous year: I 476.44 Crore) of PMUY
Loans. (Refer Note 9 and 18)

(c) Cash and Cash equivalents and Other Bank Balances

The Corporation held cash and cash equivalents and other bank balances of K 16,881.95 Crore at March 31, 2026 (Previous
year: I 9,382.88 Crore). The cash and cash equivalents are held with bank/financial institution counterparties having good
credit ratings/good market standing. Also, Corporation invests its short term surplus funds in bank fixed deposits, Tri Party
Repo etc., which carry lesser mark to market risks for short duration.

(d) Derivatives

The derivatives are entered into with banks, financial institutions and other counterparties with good credit ratings. Further
exposures to counter-parties are closely monitored and kept within the approved limits.

(e) Investment in Debt Instruments

Investment in debt instruments mainly include loans to subsidiary, joint venture companies, investment in government
securities and debt schemes of mutual fund which do not carry any significant credit risk.

Liquidity risk is the risk that the Corporation will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset.

Liquidity risk is managed by Corporation through effective fund management. The Corporation has obtained fund and non-fund
based working capital lines from various banks. Furthermore, the Corporation has access to funds from debt markets through
Commercial Paper programs, Foreign Currency Borrowings and other debt instruments.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include estimated interest payments.

As on March 31, 2026, none of the subsidiaries have defaulted on their loan obligation in respect of which Corporation has issued
guarantee to its lender. Based on assessment, the Corporation does not have any present obligation to third parties in relation to
such guarantees.

C.iii. Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises four types of risk: currency risk, interest rate risk, commodity risk and other price risk.

C.iii.a Currency risk

The Corporation is exposed to currency risk on account of its operating and financing activities. The functional currency of the
Corporation is Indian Rupee. Our exposure is mainly denominated in US Dollars (USD). The USD exchange rate has changed
substantially in recent periods and may continue to fluctuate substantially in the future.

The Corporation has put in place a Financial Risk Management Policy to identify the most effective and efficient ways of managing
the currency risks. The Corporation uses derivative instruments, (mainly foreign exchange forward contracts) to mitigate the risk
of changes in foreign currency exchange rates in line with the policy.

The Corporation does not use derivative financial instruments for trading or speculative purposes.

Sensitivity analysis

A reasonably possible strengthening/(weakening) of the USD/AED against INR as at financial year end would have affected the
measurement of financial instruments denominated in USD/AED and affected profit or loss (before tax) by the amounts shown below.
This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasted
sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to Property, Plant and Equipment or
recognised directly in reserves, the impact indicated below may affect the Corporation's income statement over the remaining life
of the related Property, Plant and Equipment or the remaining tenure of the borrowing respectively.

Fair value sensitivity analysis for fixed-rate instruments

The Corporation accounts for certain investments in fixed-rate financial assets such as investments in Oil bonds and Government
Securities at fair value through profit or loss. Accordingly, a decrease in 25 basis points in interest rates is likely to increase the
profit or loss (before tax) for the year ending March 31, 2026 by I 8.72 Crore (Previous year: I 16.19 Crore) and an increase in 25
basis points in interest rates is likely to decrease the profit or loss (before tax) for the year ending March 31, 2026 by I 8.67 Crore
(Previous year: I 16.08 Crore).

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 25 basis points in interest rates at the reporting date would have increased (decreased) profit or
loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain
constant. In cases where the related interest rate risk is capitalised to Property, Plant and Equipment, the impact indicated below
may affect the Corporation's income statement over the remaining life of the related Property, Plant and Equipment.

Corporation's profitability gets affected by the price differential (also known as Margin or Crack spread) between prices of products
(output) and the price of the crude oil and other feed-stocks used in production (input). Prices of both are set by markets. Hence
Corporation uses derivatives instruments (swaps, futures, options and forwards) to hedge exposures to commodity price risk to
cover refinery operating cost using Basic Swaps on various products' cracks like Naphtha, Gasoline (Petrol), Jet/Kerosene, Gasoil
(Diesel) and Fuel Oil against Benchmark Dubai Crude. Further volatility in freight costs is hedged through Freight Forwards and bunker
purchases. Settlement of all derivative transactions take place on the basis of monthly average of the daily prices of the settlement
month quoted by Platts. Further, structured product solution for certain long term LNG procurment was under taken and the same
was hedged by way of taking positions in put spread of benchmark LNG DES JKM.

Corporation measures market risk exposure arising from its trading positions using value-at-risk (VaR) techniques. These techniques
make a statistical assessment of the market risk arising from possible future changes in market prices over a one-day holding period.

Corporation uses historical model of VaR techniques based on variance/covariance to make a statistical assessment of the market
risk arising from possible future changes in market values over a 24-hour period and within a 95% confidence level. The calculation
of the range of potential changes in fair value takes into account positions and the history of price movements for last two years.
VAR calculation for open position as on March 31, 2026 is as given below:

Notes

A. The Corporation has Triparty Repo Settlement System limits from Clearing Corporation of India Limited, the borrowing
against which was I 2,088.87 Crore as at March 31, 2026 (Previous Year I 2387.76 Crore). These limits are secured by 7.59%
Government Stock 2026 of face value aggregating to I 2,327.00 Crore (Previous Year I 2,697.00 Crore).[Refer Note no. 14]

B. The Corporation has Clearcorp Repo Order Matching Systems (CROMs) limits from Clearing Corporation of India Limited, the
borrowing against which was Nil as at March 31, 2026 (Previous Year I 869.99 Crore). These limits are secured by Oil Marketing
Companies GOI Special Bonds of face value aggregating to Nil (Previous Year 879.00 Crore).[Refer Note no. 14]

C. The Corporation purchases and sells petroleum products from different Oil and Gas Companies. Under the terms of the
agreement, the amounts payable by the Corporation are offset against receivables and only the net amounts are settled. The
relevant amounts have therefore been presented net in the balance sheet.

Note 60 CAPITAL MANAGEMENT

The Corporation's objective is to maximize the shareholders' value by maintaining an optimum capital structure. Management
monitors the return on capital as well as the debt equity ratio and makes necessary adjustments in the capital structure for the
development of the business.

The Corporation's debt to equity ratio as at March 31, 2026 was 0.11 (Previous year: 0.29).

Note: For the purpose of computing debt to equity ratio, Equity includes Equity Share Capital and Other Equity, and Debt includes
Current and Non Current Borrowings.

Note 61 SEGMENT REPORTING

As per the requirements of Ind AS 108 on "Operating Segments", segment information has been provided under the Notes to
Consolidated Financial Statements.

Note 62 MICRO AND SMALL ENTERPRISES

The details regarding Micro and Small Enterprises, to the extent the Corporation has received intimation from the "suppliers"
regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, are as under:

Note 63 DISCLOSURE ON GOVERNMENT GRANT1. Grant in respect of EV Charging Station

a. The Corporation has received a capital grant from Ministry of Heavy Industries (MHI) for establishing EV charging stations
nationwide to facilitate the adoption of electric vehicles (EVCS) at ROs under Faster Adoption and Manufacturing of
Electric Vehicles (FAME) India Scheme. The unamortized capital grant amount as at March 31, 2026 is I 271.75 Crore
(March 31, 2025: I 199.17 Crore) which include I 244.12 Crore (March 31, 2025: I 187.38 Crore) towards non-current
portion and I 27.63 Crore (March 31, 2025: I 11.78 Crore) towards current portion.

b. The Ministry of Heavy Industries (MHI) sanctioned a capital grant of I 27.89 crores to the Corporation under the Prime
Minister Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE) in March 2026. The
unamortized capital grant amount as at March 31, 2026 is I27.89 Crore (March 31, 2025: NIL) towards non-current portion.

2. Grant in respect of Work Contracts Tax (WCT) Reimbursement

a. The Corporation has received a capital grant in the form of WCT Reimbursement for Integrated Refinery Expansion project
(IREP) and Propylene Derivatives Petrochemical Project (PDPP) projects from the Government of Kerala. The unamortized
capital grant amount as at March 31, 2026 is I 46.62 Crore (March 31, 2025: I 50.90 Crore) which include I 42.58 Crore
(March 31, 2025: I 46.62 Crore) towards non-current portion of unamortised Capital Grant, and I 4.04 Crore (March 31,
2025: I 4.28 Crore) towards current portion.

b. The Corporation has received a capital grant in the form of Entry Tax Exemption and WCT Reimbursement for Bina Refinery
from the Government of Madhya Pradesh. The unamortized capital grant amount as at March 31, 2026 is I 61.62 Crore
(March 31, 2025: I 67.78 Crore) which include I55.46 Crore (March 31, 2025: I 61.62 Crore) towards non-current portion
of unamortised Capital Grant, and I 6.16 Crore (March 31, 2025: I 6.16 Crore) towards current portion.

3. Grant in respect of Interest Free Loan

a. The Corporation has received a capital grant in the form of Interest Free VAT loan from the Government of Madhya Pradesh.
The unamortized capital grant amount as at March 31, 2026 is I 1,281.94 crore (March 31, 2025: I 1,227.67 crore),
which includes I 1,156.67 Crore (March 31, 2025: I 1,118.38 Crore) towards non-current portion and I 125.27 Crore
(March 31, 2025: I 109.29 Crore) towards current portion.

b. The Corporation has received a capital grant in the form of Interest Free loan towards incentive in respect of KGST/
VAT/SGST from the Government of Kerala. The unamortized capital grant amount as at March 31, 2026 is I 43.88 crore
(March 31, 2025: I 47.21 crore), which includes I40.55 Crore (March 31, 2025: I 43.88 Crore) towards non-current portion
and I 3.33 Crore (March 31, 2025: I 3.33 Crore) towards current portion.

4. Grant in respect of 2G Ethanol Plant at Bargar

The Corporation has received a capital grant in the form of Viability Gap Funding from the Government of India through the
Centre for High Technology (CHT) under the PM JI-VAN Yojana for setting up of 2G Ethanol Plant at Bargarh. The unamortized
capital grant amount as at March 31, 2026 is I 74.90 Crore (March 31, 2025: I 75.00 Crore) which include I 71.90 Crore
(March 31, 2025: I 75.00 Crore) towards non-current portion of unamortised Capital Grant, and I 3.00 Crore
(March 31, 2025: NIL) towards current portion.

5. Grant in respect of Stamp Duty and Registration Fees Waiver

The Corporation has received a capital grant from Government of Andhra Pradesh in the form of waiver of Stamp Duty and
Registration Fees on registration of land allotted for setting up of Greenfield Refinery cum Petrochemical Complex in Andhra
Pradesh. The unamortized capital grant amount as at March 31, 2026 is I 20.01 Crore (March 31, 2025: NIL) towards non¬
current portion.

6. Other Grants

The Corporation has received other capital grants for various purposes including grants received for technology development,
setting up of renewable energy infrastructure etc. The unamortized capital grants amount as at March 31, 2026 is I0.92 Crore
(March 31, 2025: I 1.88 Crore) which include I 0.65 Crore (March 31, 2025: I 1.61 Crore) towards non-current portion of
unamortised Capital Grant, and I 0.27 Crore (March 31, 2025: I 0.27 Crore) towards current portion.

(B) Utilisation of Borrowed Funds and share premium

During FY 2025-26, other than the transactions undertaken in the normal course of business and in accordance with extant
regulatory guidelines and internal policies, as applicable,

1. Corporation has not granted any advance/loans or investments or provided guarantee or security or the like to any other
person(s) or entities with an understanding, whether recorded in writing or otherwise, to further lend/invest/provide guarantee
or security or the like to any other person on behalf of the Corporation.

2. Corporation has not received any funds from any person(s) or entity with an understanding, whether recorded in writing or
otherwise, that the company shall further lend or invest or provide guarantee or security or like in any other person on behalf
of an identified by such person(s)/entity.

(C) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction to be registered with ROC beyond the statutory period.

As per MCA website, a charge of I 246.80 Crore is appearing unsatisfied vide charge ID 90165239. As per information available with
the company, the charge was satisfied vide document number 424 on 20^th April 2000 by Registrar of Companies, Mumbai. Hence
the same has not been disclosed in Schedule III.

Note 69

Figures of the previous year have been regrouped wherever necessary, to conform to current period presentation and disclosed
separately wherever material.