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AUDITOR'S REPORT

Indian Oil Corporation Ltd.

You can view full text of the latest Auditor's Report for the company.
Market Cap. (₹) 197245.46 Cr. P/BV 1.09 Book Value (₹) 128.68
52 Week High/Low (₹) 184/111 FV/ML 10/1 P/E(X) 14.51
Bookclosure 08/08/2025 EPS (₹) 9.63 Div Yield (%) 2.15
Year End :2025-03 

We have audited the accompanying standalone financial statements of Indian Oil Corporation Limited (the "Company”), which
comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date and notes to the financial statements,
including a summary of material accounting policies and other explanatory information (hereinafter referred to as the "Standalone
Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 (the "Act”) in the manner so required and give a true and fair view
in conformity with Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as
at March 31,2025, and profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors' Responsibilities for the
Audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India ("ICAI”), together with the ethical requirements that are relevant to our
audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report:

Key Audit Matters

Auditors' response to Key Audit Matters

Property, Plant & Equipment and Intangible Asset

There are areas where management judgement impacts the
carrying value of property, plant and equipment, intangible assets,
and their respective depreciation/amortisation rates. These include
the decision to capitalise or expense costs; the annual asset life
review; the timeliness of the capitalisation of assets and the use of
management assumptions and estimates for the determination or the
measurement and recognition criteria for assets retired from active
use. Due to the materiality in the context of the Balance Sheet of the
Company and the level of judgement and estimates required, we
consider this to be as area of significance.

(Refer Note No. 2 & 3 to the Standalone Financial Statements)

We assessed the controls in place over the fixed asset cycle, evaluated
the appropriateness of capitalisation process, performed tests of
details on costs capitalised, the timeliness of the capitalisation of
the assets and the de-recognition criteria for assets retired from
active use.

In performing these procedures, we reviewed the judgements made
by management including the nature of underlying costs capitalised;
determination of realizable value of the assets retired from active
use; the appropriateness of assets lives applied in the calculation of
depreciation/amortisation; the useful lives of assets prescribed in
Schedule II to the Act and the useful lives of certain assets as per
the technical assessment of the management. We observed that the
management has regularly reviewed the aforesaid judgements and
there are no material changes.

Key Audit Matters

Auditors' response to Key Audit Matters

Provision for Direct Taxes

The Company has uncertain direct tax positions including matters
under dispute which involves significant judgment relating to the
possible outcome of these disputes in estimation of the provision for
income tax. Because of the judgement required, this area is considered
as a key audit matter.

(Refer Note No. 7 to the Standalone Financial Statements)

Our audit procedures involved assessment of the management's underlying
assumptions in estimating the tax provision and the possible outcome of
the disputes taking into account the legal precedence, jurisprudence and
other rulings in evaluating management's position on these uncertain
direct tax positions. We have also assessed the disclosures made by the
company in this regard in standalone financial statements

Provisions, Contingencies and Litigations

The Company is involved in various taxes and other disputes for which
final outcome cannot be easily predicted and which could potentially
result in significant liabilities. The assessment of the risks associated
with the litigations is based on complex assumptions, which require
the use of judgement, and such judgement relates, primarily, to the
assessment of the uncertainties connected to the prediction of the
outcome of the proceedings and to the adequacy of the disclosures
in the standalone financial statements. Because of the judgement
required, the materiality of such litigations and the complexity of the
assessment process, this area is considered as a key audit matter.

(Refer Note No. 18, 36B & 49.5 to the Standalone Financial Statements)

Our audit procedures in response to this Key Audit Matter included,

among others,

• Assessment of the process and relevant controls
implemented to identify legal and tax litigations and pending
administrative proceedings.

• Assessment of assumptions used in the evaluation of potential
legal and tax risks performed by the legal and tax department of
the Company considering the legal precedence and other rulings
in similar cases.

• Inquiry with the legal and tax departments regarding the status
of the most significant disputes and inspection of the key
relevant documentation.

• Analysis of opinion received from the experts wherever available.

• Review of the adequacy of the disclosures in the notes to the
standalone financial statements.

Investments in Subsidiaries, Joint Ventures and Associates

Investments in subsidiaries, joint ventures and associates which
are valued at cost have been adjusted for impairment losses in line
with "Ind AS 36 Impairment of assets". In case there is an indication
of possible impairment, the Company carries out an impairment test
by comparing the recoverable amount of the investments determined
according to the value in use method and their carrying amount. The
valuation process adopted by management is complex and is based
on a series of assumptions, such as the forecast cash flows, the
appropriate discounting rate and the growth rate. These assumptions
are, by nature, influenced by future expectations regarding the
evolution of external market.

Since judgement of the management is required to determine
whether there is indication of possible impairment and considering
the subjectivity of the estimates relating to the determination of the
cash flows and the key assumptions of the impairment test, the area
is considered as a key audit matter.

(Refer Note No. 4 to the Standalone Financial Statements)

With reference to this key audit matter, we considered the following:

• Comparing the carrying amount of investments with financial
statements of investee companies to identify whether their net
assets value, being an approximation of their minimum recoverable
amount, were in excess of their carrying amount.

• Market capitalization in case of listed entities in which investments
have been made.

• Certain entities where carrying value of Investments is less than
the Net Assets Value due to being in the construction stage and
have not begun commercial operations.

Based on the information and explanations obtained as above, we
concluded that the Management's judgement regarding indication
of impairment in certain investments during the year is appropriate.
Where there is indication of impairment, we examined the approach
taken by management to determine the value of the investments,
analysed the methods and assumptions applied by management
to carry out the impairment test and the reports obtained from the
experts in valuation.

The following audit procedures were adopted:

• identification and understanding of the significant controls
implemented by the Company over the impairment testing process;
analysis of the reasonableness of the principal assumptions made
to estimate their cash flows, and obtaining other information from
management that we deemed to be significant;

• analysis of actual data of the year and previous years in comparison
with the original plan, in order to assess the nature of variances
and the reliability of the planning process;

• assessment of the reasonableness of the discount rate
and growth rate;

• Verification of the mathematical accuracy of the model used to
determine the value in use of the investments.

We also examined the adequacy of the information provided by the
Company about the impairment test and its consistency with the
requirements of Ind AS 36.

Information Other than the Standalone Financial Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the
information included in the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business
Responsibility and Sustainability Report, Corporate Governance, but does not include the Standalone Financial Statements and our
auditors' reports thereon.

The above referred information is expected to be made available to us after the date of this audit report.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone
Financial Statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter
to those charged with governance and take appropriate actions necessitated by the circumstance and the applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income,
changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the
audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to standalone Financial Statements in place and the operating effectiveness
of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the
Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditors' report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events
or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.

Other Matters

(a) The standalone financial statements include the Company's proportionate share (relating to Jointly controlled operations of E&P
activities, wherein the company is not an operator) in assets ?
1,023.46 Crore and liabilities J298.28 Crore as at March 31,2025 and
total revenue of ?
262.94 Crore, expenditure of ?234.90 crore and profit before tax of ?28.04 Crore for the year ended on that date
and in items of the statement of cash flow and related disclosures contained in the enclosed standalone financial statements. Our
observations thereon are based on unaudited statements from the operators to the extent available with the Company in respect
of 24 Blocks (out of which 7 Blocks are relinquished) in India and overseas and have been certified by the management. Our
opinion in respect thereof is solely based on the management certified information. According to the information and explanations
given to us by the Company's management, these are not material to the Company.

We have also placed reliance on technical/ commercial evaluations by the management in respect of categorisation of wells as
exploratory, development and dry well, allocation of cost incurred on them, liability under New Exploration Licensing Policy (NELP)
and nominated blocks for under-performance against agreed Minimum Work Programme.

(b) The Standalone Financial Statements of the Company for the year ended March 31,2024 were jointly audited by M/s. Khandelwal
Jain & Co., M/s. K G Somani & Co LLP, M/s. Komandoor & Co LLP and M/s. S R B & Associates, and they had expressed an
unmodified opinion on Standalone Financial Statements vide their report dated April 30, 2024.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order”) issued by the Central Government of India in terms of
sub- section (11) of Section 143 of the Act, we give in the "
Annexure A” a statement on the matters specified in the paragraphs 3
and 4 of the said Order, to the extent applicable.

2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information and explanations given to us, in the "
Annexure B” on the
directions issued by the Comptroller and Auditor General of India.

3. As required by Section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.

c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity
and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under
Section 133 of the Act.

e. As the company is a Government Company, in terms of notification no. G.S.R. 463(E) dated 5th June 2015, issued by the
Ministry of Corporate Affairs, the sub-section (2) of section 164 of the Act is not applicable to the company.

f. With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the
Company and the operating effectiveness of such controls, refer to our separate report in "
Annexure C”.

g. As the company is a Government Company, in terms of notification no. G.S.R. 463(E) dated 5th June 2015, issued by the

Ministry of Corporate Affairs, the sub-section (16) of section 197 of the Act is not applicable to the company

h. With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 of the Companies (Audit

and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements-Refer Note 36B and 49.5 to the standalone financial statements.

ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material
foreseeable losses, if any, on long term contracts including derivative contracts - Refer Note 18 to the standalone
financial statements.

iii. There has been no delay in transferring the amount, required to be transferred to the Investor Education and Protection
Fund by the Company.

iv. a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either

individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity
("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the Company from any person or entity, including foreign
entity ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, 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 Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and

c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii)
of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. As stated in Note 31 to the standalone financial statements:

a) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in
compliance with section 123 of the Act to the extent it applies to payment of dividends.

b) The Board of Directors of the Company has proposed final dividend for the year which is subject to the approval
of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123
of the Act to the extent it applies to declaration of dividend.

vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining
its books of account for the financial year ended March 31,2025 which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further,
during our audit we did not come across any instance of the audit trail feature being tampered with. Additionally, the
audit trail has been preserved by the company as per the statutory requirements for record retention

For KHANDELWAL JAIN & CO For K G SOMANI & CO LLP For M K P S & ASSOCIATES LLP For KOMANDOOR & CO LLP

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

Firm Regn. No. Firm Regn. No. Firm Regn. No. Firm Regn. No.

105049W 006591N/N500377 302014E/W101061 001420S/S200034

Sd/- Sd/- Sd/- Sd/-

Naveen Jain Amber Jaiswal Narendra Khandal Nagendranadh Tadikonda

Partner Partner Partner Partner

M. No. 511596 M. No. 550715 M. No. 065025 M. No. 226246

UDIN: 25511596BMIVZN7875 UDIN: 25550715BMJBVR7606 UDIN: 25065025BMNQPV4428 UDIN: 25226246BMIGKB6533

Place: New Delhi

Date: 30th April 2025

KHANDELWAL JAIN & CO K G SOMANI & CO LLP M K P S & ASSOCIATES LLP KOMANDOOR & CO LLP

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

6-B, PIL Court, 6th Floor, 3/15, Asaf Ali Road, 4th Floor 12, Radha Nath Malick Lane, Fortuna Tower, Room No 40,

111, Maharshi Karve Road, Near Delite Cinema, Kolkata - 700 012 N.S Road,

Mumbai - 400 020 New Delhi - 110 002 Kolkata - 700 012

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