1.15.1 Provisions
Provisions are recognized when the Company has a
present obligation as a result of a past event and it is
probable that the Company will be required to settle the
obligation and a reliable estimate can be made of the
amount of the obligation.
The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account all the relevant facts, the risks and
uncertainties surrounding the obligation. Provision
is measured using the present value of cash flows
estimated to settle the present obligation as on the
reporting date.
Provisions towards cost of unfinished committed
work program (CWP) or minimum work program (MWP)
committed by the Company for all joint venture blocks
are made when there is a present obligation on the basis
of available facts as at the end of the reporting period.
1.15.2 Decommissioning and restoration obligations
Liabilities towards costs relating to assets retirement
obligations are recognized when the Company has an
obligation to plug and abandon a well, dismantle and
remove a facility or an item of plant and to restore the
site on which it is located, and when a reliable estimate
of that liability can be made. Liabilities towards costs
relating to dismantling, abandoning and restoring well
sites, associated production facilities and plants are
recognized at the commencement of drilling a well
or when facilities and plants are installed, as the case
may be. The amount recognized is the present value of
the estimated future expenditure determined
considering the depth and the type of wells (testing
well, exploratory well, developed well etc.), facilities
and plants installed in accordance with local conditions
and requirements at current prices and escalated
using appropriate inflation rate till the expected date
of decommissioning and discounted using appropriate
risk-free discount rate.
An amount equivalent to the decommissioning liability
provision is recognized as part of the corresponding
PPE, CWIP or Exploration & Evaluation Asset (E&E) as
the case may be. The decommissioning cost in respect
of dry exploratory well is expensed off in the Statement
of Profit and Loss as exploratory well cost.
Provision for decommissioning cost in respect of assets
under joint operations is considered as per participating
interest of the Company on the basis of estimates
prepared by the operator.
Liability for decommissioning cost is updated annually at
current cost basedonlatest available technical assessment.
The unwinding of the discount is included as a finance
cost. Any change in the present value of the estimated
decommissioning provision other than unwinding of
discount is adjusted to decommissioning provision
and added to or deducted from the cost of the asset in
the current period and is considered for depreciation
(depletion) prospectively. In case, where the reversal of
decommissioning provision exceeds the corresponding
carrying value of the related assets, the excess amount is
recognized in the Statement of Profit and Loss.
The Company considers the impact of health, safety
and environmental legislation in estimating the
decommissioning liability.
The actual cost incurred on settlement of the obligation
is adjusted against the liability and the ultimate gain or
loss is recognized in the Statement of Profit and Loss,
when the designated oil / gas field or a group of oil/gas
fields cease to produce.
1.16.0 Investments in subsidiaries,
associates and joint ventures
The Company measures its investments in subsidiaries,
associates and joint ventures at cost and the same
are tested for impairment in case of any indication of
impairment.
1.17.0 Financial instruments
1.17.1 Financial assets
1.17.1.1 Initial Recognition and Measurement
All regular purchases or sales of financial assets that
require delivery of assets within a timeframe established
by regulation or convention in the marketplace are
recognized on a trade date basis which is the date on
which the Company commits to purchase or sell the
asset or investment date as the case may be.
The Company measures a financial asset at its fair value
plus, in the case of a financial asset not subsequently
measured at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition of
the financial asset except for trade receivables which
are initially measured at transaction price. Transaction
costs of financial assets carried at fair value through
profit or loss are expensed off in the Statement of Profit
and Loss.
1.17.1.2 Classification of financial assets
The Company determines the classification of its
financial assets based on its business model for
managing the financial assets and the contractual
terms of the cash flows. The Company's financial assets
are classified into the following categories:-
a. those to be measured at fair value (either through
other comprehensive income or through profit or
loss). These includes equity securities at fair value
through other comprehensive income (FVTOCI) and
investment in mutual fund and leave encashment
fund at fair value through profit or loss (FVTPL).
b. those to be measured at amortized cost. These
comprise debt securities at amortized cost, trade
receivables, loan receivables, cash and bank
balances, other financial assets and receivables.
On initial recognition, the Company has made an
irrevocable election to present the subsequent changes
in fair value through other comprehensive income for
equity instruments (other than in subsidiaries, joint
ventures and associates) that are not held for trading.
1.17.1.3 Subsequent Measurement
A gain or loss in debt securities that is subsequently
measured at amortized cost is recognized as a
component of other income/expense when the asset is
derecognized or impaired. Interest income from these
financial assets is included in other income using the
effective interest method.
Gain and losses on financial assets measured at fair
value are recorded either through profit or loss or
other comprehensive income. Upon derecognition, the
cumulative fair value changes recognised in OCI is not
reclassified from the equity to profit or loss.
1.17.1.4 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank
and in hand, including offsetting bank overdrafts,
and short-term highly liquid investments that are
readily convertible to known amounts of cash, have a
maturity of three months or less from the acquisition
date.
1.17.1.5 Trade receivables
Trade receivables are recognized initially at their
transaction price unless those contain a significant
financing component in accordance with Ind AS 115.
1.17.1.6 Impairment of financial assets
TheCompanymeasuresthelossallowanceforallfinancial
instruments (Investments, loans, cash calls receivable
from JV partners, receivable against insurance claim
and leave encashment and other financial assets) at
an amount equal to the lifetime expected credit losses
if the credit risk on that financial instrument has
increased significantly since its initial recognition.
If the credit risk on a financial instrument has not
increased significantly since its initial recognition, the
Company measures the loss allowance for that financial
instrument at an amount equal to 12-month expected
credit losses.
However, for trade receivables that result in relation to
revenue from contracts with customers, the Company
measures the loss allowance at an amount equal to
lifetime expected credit losses.
1.17.1.7 De-recognition of financial assets
The Company de-recognizes a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of
the asset to another party.
On de-recognition of a financial asset in its entirety, the
difference between the asset's carrying amount and the
sum of the consideration received and receivable and
the cumulative gain or loss that had been recognized
in other comprehensive income and accumulated in
equity is recognized in profit or loss if such gain or loss
would have otherwise been recognized in profit or loss
on disposal of that financial asset.
1.17.2 Financial liabilities and equity instruments
1.17.2.1 Equity instruments
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company are recognized at the proceeds
received, net of direct issue costs.
1.17.2.2 Financial liabilities
The Company initially recognizes a financial liability at
fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company's financial liabilities which are not held
for trading are subsequently measured at amortized
cost using the effective interest method which mainly
include loans and borrowings, lease liabilities, financial
guarantee contracts and other financial liabilities.
However, financial guarantee contracts issued by the
Company to provide a loan at below-market interest
rate are measured in accordance with the specific
accounting policies set out below.
Interest expense that is not capitalized as part of costs
of an asset is included in the 'finance costs' line item.
Gain or loss on financial liabilities are measured at
amortized cost are recorded in profit or loss.
1.17.3 Financial guarantee contracts
Financial guarantee given by the Company are initially
measured at their fair values, adjusted for transaction
costs that are directly attributable to the issuance of
the guarantees and are subsequently measured at the
higher of loss allowance determined in accordance
with Ind AS 109 and the amount initially recognised less
cumulative amount of finance income recognised.
The Company measures finance income by amortizing
the initial fair value of guarantee on a straight-line basis
over the guarantee period.
Fair value of financial Guarantee contract issued by
the Company for subsidiaries, associates and joint
ventures are initially recognised as deemed investment
with a corresponding liability recorded under financial
guarantee obligation. Such deemed investment is
added to the carrying amount of investment in such
subsidiaries, associates andjoint ventures as applicable.
On disposal of investment by the Company in subsidiary,
associates and joint venture, the difference between
net disposal proceeds and the carrying amounts
(including corresponding value of deemed investment)
are recognised in the statement of profit and loss.
1.17.4 De-recognition of financial liabilities
The Company derecognises financial liabilities
when, and only when, the Company's obligations are
discharged, cancelled or they expire. The difference
between the carrying amount of the financial liability
de-recognised and the consideration paid and payable
is recognised in profit or loss.
1.18.0 Interest in joint operations
The Company has joint operations in the nature of
Production Sharing Contracts (PSCs) and Revenue
Sharing Contracts (RSCs) executed with the
Government of India / Government of Foreign Countries
by the Company along with other entities to undertake
exploration, development and production of Oil and/or
Gas activities in various concessions/block/area are
accounted as under:
a) The Financial Statements reflect the share of
the Company's assets, liabilities, income and
expenditure of the Joint Operations in proportion
to the participating interest of the Company as per
the terms of the PSCs and RSCs, on a line-by-line
basis.
b) The revenue on account of petroleum produced
and sold from the exploitation of such reserves
and after recovery of cost or royalty, as per the
relevant contract, a part of the revenue is paid to
Government of India on a predetermined basis. It
is reduced from the revenue from sale of products
as Government of India's Share.
c) Proved Developed Reserve of Oil and Gas in such
concessions/block/area is also considered in proportion
to participating interest of the Company.
d ) Con sideration recoverabl e from new Joint
Venture Partners for the right to participate in
operations is reduced from respective value of
assets and/or expenditure to the extent of the
new partner's contribution towards past cost and
balance is considered as miscellaneous receipts/
expenses.
e) Gain or loss on sale on interest in block, is
recognized in the Statement of Profit and Loss,
except that no gain is recognized at the time
of such sale if substantial uncertainty exists
about the recovery of the costs applicable to the
retained interest or if the Company has substantial
obligation for future performance. The gain in such
situation is treated as recovery of cost related to
that block.
1.19.0 Segment Reporting
Considering the nature and associated risks and return
of products and services, the Company has adopted
its products and services (viz. Crude Oil, Natural Gas,
LPG, Pipeline Transportation, Renewable Energy and
Others) as the primary reporting segments. There are
no reportable geographical segments.
Segment assets, liabilities, income and expenses
have been either directly identified or allocated to the
segments on the similar basis as used for allocation
of cost for the purpose of preparing the Financial
Statements of the Company.
See Note 44 for the detailed disclosure related to
segments.
1.20.0 Earnings per share
Basic earnings per share are calculated by dividing the
net profit after tax for the year attributable to equity
shareholders of the Company by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per
share, the net profit after tax for the year attributable to
equity shareholders of the Company and the weighted
average number of shares outstanding during the year
are adjusted for the effects of all dilutive potential
equity shares.
1.21.0 Dividend
The final dividend on shares is recorded as a liability
on the date of approval by shareholders, and interim
dividends are recorded as a liability on the date of
declaration by the Company's board of directors.
1.22.0 Contingent Liabilities and Contingent
Assets
Contingent liabilities are possible obligations that
arise from past events and whose existence will only
be confirmed by the occurrence or non-occurrence of
one or more future events not wholly within the control
of the Company. A provision is recognised in respect of
present obligations where the outflow of resources is
probable and all other cases are disclosed as contingent
liabilities unless the possibility of outflow of resources
is remote.
Contingent liabilities relating to direct taxes, indirect
taxes, guarantees, legal cases and others, whether
disputed or not, are disclosed on the basis of judgment
of the management/ independent experts and reviewed
at each Balance Sheet date to reflect the current
management estimate.
Contingent assets are not recognized but disclosed in
the financial statements along with an estimate of their
financial effect where an inflow of economic benefits is
probable and where practicable.
2.1 The Company has adopted to continue with the carrying value of its Property, Plant & Equipment (PPE) -
Tangible Assets, recognised as on 1st April, 2015 (transition date) measured as per the Previous GAAP and used
that carrying value as its deemed cost as on the transition date.
2.2 Addition to Oil & Gas assets during current period includes downward revision of capitalised portion of cost
of decommissioning liability due to change in estimates after netting off additions of new wells & facilities
amounting to '4.14 crore (upward revision during previous year '191.79 crore).
2.3 Plant & Equipment includes carrying value of '0.60 crore (previous year '0.54 crore) related to asset retired
from active use.
2.4 Lands for projects and drillings operations are acquired primarily through bipartite negotiation with the
occupiers/pattadars. In case, however, bipartite negotiation fails, land is acquired under relevant land
laws with Government intervention. Upon successful negotiation or government order, as the case may
be, consent letters are obtained from the occupiers/pattadars and surface compensation for the standing
crops on the lands are settled and the same are capitalized either as Free hold Land or as Acquisition Cost
of Oil & Gas assets. At the same time occupiers/pattadars are advised to submit documentary evidences in
support of their legal possession of the lands. Pending submission of these documents and upon settlement
of surface compensation, liability for land value is determined and capitalised under respective heads. Land
cost forming part of Oil & Gas Assets is either amortized or charged off depending on discovery in the well.
The total land in the possession of the Company is segregated as appended below:
3.3 Addition to Oil & Gas assets during current year includes downward revision of capitalised portion of cost of
decommissioning liability due to change in estimates after netting off additions due to new wells & facilities
amounting to ' 0.62 crore (Downward revision during previous year ' 21.07 crore).
3.4 Addition to Development Cost-Wells includes depreciation on rigs and other support equipment used for
drilling wells amounting to ' 272.60 crore (previous year ' 212.64 crore).
3.5 For details of title deed of immovable properties not held in the name of the Company please refer Note
56.1. (ii).
6.6 The Company subscribed 20,03,44,555 equity shares offered by Numaligarh Refinery Limited on right basis
and during the year ended 31st March,2026 paid the 4th and final call amounting to ' 550.95 crore in accordance
with the terms of issue.
6.7 Oil India International BV, Netherlands, the wholly owned subsidiary of OIL has 50% stake in a JV company
WorldAce Investments Limited, Cyprus which in turn owns 100% of the voting equity in Stimul-T LLC, a
Russian registered legal entity, which owns block Licence 61 in the Tomsk region of the Russian Federation.
Stimul-T LLC filed application for bankruptcy in the Arbitration Court of Tomsk, Russia on 10th May, 2023. The
application for Bankruptcy has been accepted by the Arbitration Court and in its ruling dated 8th November,
2023 appointed a Temporary Manager (Bankruptcy Trustee) and initiated the supervision stage of Bankruptcy
which is currently in progress.
6.8 The Company is holding 23,874 nos (22,708 nos as on 31st March, 2025) fully paid 10% Cumulative Redeemable
preference share of No par value in Beas Rovuma Energy Mozambique Ltd as on 31st March, 2026.
5120 ordinary equity shares and 19,116 preference shares of the Company in Beas Rovuma Energy Mozambique
Limited (BREML) have been provided under custody of Area 1 shared security custodian (Standard Bank, S.A.)
under project finance arrangement entered into by BREML.
6.9 A Joint Venture Company (JVC) in the name of "APGCL OIL Green Power Limited" was incorporated on 21st
February 2025, with equity participation of 49% from the Company and 51% from Assam Power Generation
Corporation Limited. The company has been formed to plan, develop, construct, own and operate renewable/
green energy projects. The Company has allotted 1,71,99,000 nos of equity share of the face value of ' 10 per
share fully paid up to Oil India Limited during the year ended 31st March,2026.
6.10 The Company has been alloted 2,94,00,000 nos of equity share of the face value of ' 10 per share fully paid up
by North East Gas Distribution Company Limited, the Joint Venture of the Company, during the year ended 31st
March,2026 as right shares.
6.11 The Company has been alloted 1,60,00,000 nos of equity share of the face value of ' 10 per share fully paid up by
HPOIL Gas Private Limited, the Joint Venture of the Company, during the year ended 31st March,2026 as right
shares.
6.12 The Company has been alloted 80,43,750 nos of equity share of the face value of ' 10 per share fully paid up by
Purba Bharati Gas Private Ltd., the Joint Venture of the Company, during the year ended 31st March,2026 as
right shares.
6.13 A Joint Venture Company (JVC) in the name of "Assam Valley Fertilizer and Chemical Company Limited" was
incorporated on 25th July 2025, with equity participation of 18% from the Company. The company has been
formed for Setting up of a new Ammonia-Urea Complex Namrup IV Fertilizer Plant at Namrup, Assam. The
Company has allotted 1,02,71,933 nos of equity share of the face value of ' 10 per share fully paid up to Oil India
Limited during the during the year ended 31st March,2026.
15.1 If the dividend has not been paid or claimed within 30 days from the date of its declaration, the Company is
required to transfer the total amount of the dividend which remains unpaid or unclaimed, to a special account
maintained by the Company in a scheduled bank as "Unpaid Dividend Account". The unclaimed dividend
lying with the Company is required to be transferred to the Investor Education and Protection Fund (IEPF),
administered by the Central Government after a period of seven years of its declaration. As on 31st March 2026,
no amount is due for deposit in Investor Education and Protection Fund.
15.2 Balances with Bank held for security against overdraft represent amount deposited with ORABANK, Gabon for
opening of overdraft facility for Block Shakti at Gabon.
15.3 Deposit in Escrow Account represents amount deposited with State Bank of India, New Delhi for Kharsang
Field which is related to dispute regarding calculation of share of profit petroleum including interest payable
to Government of India as per Production Sharing Contract (PSC).
21.1 Nature and purpose of reserves:
(a) Foreign Currency Monetary Item Translation Difference Account: Exchange difference on long-term foreign
currency monetary items are accumulated in a Foreign Currency Monetary Item Difference Account and
amortised over the balance period of such long term foreign currency monetary item in continuance of policy
as permitted under D13AA of Ind AS 101.
(b) Debenture Redemption Reserve: Debenture Redemption Reserve is created out of the profits of the Company,
and the amount credited to such account shall not be utilised by the Company except for the redemption of
bonds. During the corresponding period an amount of ' 436.06 crore has been transferred from Debenture
Redemption Reserve to General Reserve on redemption of USD 500 million unsecured 5.375% Notes.
(c) Capital Redemption Reserve: Capital Redemption Reserve is created out of the Securities Premium/General
Reserve, a sum equal to nominal value of the fully paid up equity shares bought back by the Company. The
amount credited to such account may be applied in paying up unissued shares of the Company to be issued to
members of the Company as fully paid bonus shares.
(d) General Reserve: The General reserve is used from time to time to transfer profits from retained earnings
for appropriation purposes. General Reserve is free reserve of the Company and is used for the purposes like
issuing bonus shares, buy back of shares etc.
(e) Retained Earnings: The retained earnings comprises of Profit / (loss) transferred from statement of profit and
loss after payment of interim and final dividend if any. It also includes remeasurement of net defined benefit
plan as per actuarial valuations which will not be reclassified to statement of profit and loss.
21.2 Other Comprehensive Income: It includes the cumulative gains/losses arising on measurement of equity
instruments designated at fair value through Other Comprehensive Income. On derecognition of such equity
instruments the net amount shall be transferred to retained earnings.
21.3 The amount that can be distributed by the Company as dividends to its equity shareholders is determined
considering the requirements of the Companies Act,2013. In the AGM held on 18th September 2025, the
shareholders approved final dividend of ' 1.50 (15%) per equity share for FY-2024-25. On 14th November
2025 and 10th February 2026, the Company had declared interim dividend of ' 3.50 per share (35%)
and ' 7.00 per share (70%) respectively. The final dividend and interim dividends have since been paid.
The Board of Directors in its meeting held on 13th May, 2026 has recomended a final dividend of ' 1.00 per
share (10%) be paid on fully paid-up equity shares for the FY 2025-26. This final dividend shall be subject to
approval by shareholders at the ensuing Annual General Meeting and has not been included as a liability in
these financial statements. The total estimated equity dividend to be paid is ' 162.66 crore.
31.1 (i) As per approval of the Cabinet Committee on Economic Affairs (CCEA), for development of infrastructure
for supply of gas to the Brahmaputra Cracker and Polymers Limited (BCPL), the Company has received an
amount of ' 215.00 crore from Ministry of Chemical and Fertilizers. The same has been recognised as deferred
income in the Balance Sheet and transferred to the Statement of profit & loss on a systematic and rational
basis over the useful life of the related assets. The unamortised grant amount as at 31st March 2026 is ' 3.44
crore (current) and ' 66.94 crore (non-current). The figures for previous year are ' 4.15 crore (current) and
' 69.68 crore (non-current).
(ii) There are no unfulfilled conditions or contingencies attached to these grants.
(iii) During the year ended 31st March, 2026, the Company has recognized an amount of ' 3.44 crore (previous year
' 4.15 crore) as amortization of deferred income in the Statement of Profit or Loss.
33.1 As per the directives of MOP&NG, Crude Oil price calculation is based on the monthly average price of
benchmarked International Basket of Crude Oil which is further adjusted for quality differential.
33.2 On application of Ind AS 115 - Revenue from contracts with customers, the sale of crude oil includes
transportation of own crude oil to customers upto the delivery point which coincides with the transfer of risk
& rewards and transfer of custody. Income from pipeline transportation includes ' 409.38 crore (previous year
' 95.25 crore) for transportation of own crude oil.
33.3 Income from Pipeline Transportation of Crude Oil includes ' 263.11 crore (previous year ' Nil) as arrears towards
revision of transportation tariff receivable from one of its customers Numaligarh Refinery Ltd. (NRL) for the
period from FY 2018-19 to FY 2024-25. For details refer Note 57.5.
33.4 The selling price of Natural Gas is determined in terms of 'New Domestic Natural Gas Pricing Guidelines, 2014',
as amended in April 2023, wherein price in respect of natural gas produced from nominated fields is fixed at
10% of the Indian Crude Basket (ICB) price, as notified by Petroleum Planning & Analysis Cell (PPAC) on monthly
basis with a floor price of US $ 4/MMBTU and a ceiling price of US $ 6.50/MMBTU to apply for fiscal years
2023-24 and 2024-25. Thereafter, the ceiling price shall increase by US $ 0.25/MMBTU in each financial year.
For eligible customers (upto Govt. allocation) in North-East, consumer price is 60% of the Domestic Natural
Gas Price and the difference between domestic gas price and consumer price is reimbursed by Government of
India. During the year, Sale of Natural Gas includes an amount of ' 829.16 crore (previous year ' 795.81 crore) of
claims towards such under-recovery of Natural Gas Price.
42.3.1 Objective
The Company monitors and manages the financial risks relating to the operations of the Company by analysing
exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate
risk and price risk), credit risk and liquidity risk.
42.3.2 Commodity Risk
Crude oil and Natural gas price of the company are linked to international prices of crude oil/natural gas. In case of
any upward or downward movement in the international prices of crude oil/natural gas, the revenue of the Company
get affected correspondingly. Therefore, the company is exposed to commodity price risk.
42.3.3 Market Risk
The Company activities exposes it primarily to the financial risks of changes in foreign currency exchange rates,
interest rate risk , market exposures that are measured using sensitivity analysis.
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities
(including LC's) at the end of the reporting period are as follows:
42.4.2 Forward foreign exchange contracts
There is no forward foreign exchange contract outstanding as on balance sheet date.
42.5 Interest rate risk management
The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest
rates and make investment in mutual funds. Periodical interest rate on floating interest loan or receivable on mutual
fund investment are linked to market rates.The risk is managed by the Company by maintaining an appropriate mix
between fixed and floating rate borrowings. The Company policy allows to use forward interest rate agreements
(FRA's) or interest rate swap as per the rquirements
The Company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management Refer note 42.8.
42.5.1 Interest Rate Sensitivity Analysis
The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period. The analysis is prepared based on the floating
interest rate assets and liabilities, assuming that the amount outstanding at the end of the reporting period was
outstanding for the whole year.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the
Company's:
Loan Taken
• Profit and Equity for the year ended March 31, 2026 would decrease/increase by ' 30.33 crores (for the year
ended March 31, 2025 : decrease/increase by ' 27.60 crores).
42.6 Price risk
The Company is exposed to equity price risks arising from equity investments in Indian Oil Corporation
Limited.
Exposure in mutual funds
The Company also manages surplus fund through investments in debt mutual fund plans regulated by Securities
Exchange Board of India (SEBI). The NAV declared by Asset Management Companies(AMC) has generally remained
constant on the mutual funds plan taken by the company. However, if the NAV of the fund is increased/decreased by
5%, the sensitivity analysis has been mentioned below:
• Profit and Equity for the year ended March 31, 2026 would increase/decrease by ' 6.40 crores (for the year
ended March 31, 2025 : decrease/increase by ' 15.37 crores).
42.6.1 Equity Price Sensitivity Analysis
The sensitivity analysis below have been determined based on the exposure to price risks at the end of the reporting
period.
If equity prices had been 5% higher/lower:
• Other comprehensive income and Equity for the year ended March 31, 2026 would increase/decrease by
' 431.48 crores (for the year ended March 31, 2025 would increase/decrease by ' 406.94 crores.)
42.7 Credit Risk Management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral security, wherever appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company regularly monitors its counterparty limits by reviewing the outstanding balance and ageing of the
same.
The Company has a credit policy that is designed to ensure that consistent processes are in place to measure and
control credit risk. Credit risk is considered as part of the risk-reward balance of doing business. On entering into any
business contract the extent to which the arrangement exposes the Company to credit risk is considered.
42.8 Liquidity Risk Management
Liquidity risk is the risk that suitable sources of funding for the Company's business activities may not be
available.
The Company manages liquidity risk by monitoring its forecast and actual cash flows, maintaining adequate reserves
and by matching the maturity profiles of financial assets and liabilities.
42.8.1.1 The table below provides details regarding the contractual maturities of financial liabilities including
estimated interest payments as at March 31, 2026 :
Note 2 : Fair value on the basis of price provided by respective Insurance companies
Note 3 : Fair value on the basis of quoted price from NSE
42.9.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value
disclosures are required)
Except as detailed in the following table, the company considers that the carrying amounts of financial assets and
financial liabilities recognised in the financial statements approximate their fair values.
Fair value hierarchy
Level 1-Quoted prices(unadjusted) in active markets for identical assets or liabilities.
Level 2-Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and financial liabilities included in the level 2 categories above have been
determined in accordance with generally accepted pricing models based on a discounted cash flow analysis,
with the most significant inputs being the discount rate that reflects the credit risk of counterparties.
The Fair Value of current financial assets and current financial liabilities are approximately equals to their carrying
value.
There has been no transfer in either direction [i.e. between Level 1,2 and 3 ] for the year ended 31st March 2026 & 31st
March 2025
The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy.
43.2 Defined Benefit Plans
The various Benefit Plans which are in operation in the Company are Oil India Limited Employees Provident
Fund (OILEPF), Oil India Limited Staff Provident Fund (OILSPF), Oil India Gratuity Fund (OIGF), Oil India
Employees' Pension Fund (OIEPF), Oil India Pension Fund (OIPF), Leave Encashment Fund, Post-Retirement
Medical Benefit and Social Security Scheme Fund. The present value of the obligation is determined based on
actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving
rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final
obligation.
The amount recognized in the Balance Sheet as the present value of the defined benefit obligation is net of the fair
value of plan assets at the Balance Sheet date.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity
risk and salary risk.
Note:
1. Revenue mentioned above, represents revenue from external customers. No revenue is generated from
transactions with other operating segments of the same entity.
2. Revenue and expenses directly identifiable to the segments have been allocated to the relative primary
reportable segments.
3. Capital Expenditure does not include additions of RoU Assets.
4. Assets and liabilities which are directly identifiable to the segments have been allocated to relative segments.
5. Assets and liabilities which are not directly identifiable to the segments have been disclosed under
unallocated.
6. All assets are allocated to reportable segments other than investments in subsidiaries, associates and joint
ventures, other investments, loans and current and deferred tax assets.
7. There are no reportable geographical segments.
8. Information about major customers:
The Company's significant revenue from operations comes from sales to Public Sector Undertakings (PSUs).
The total sales to such PSUs during the year ended 31st March 2026 amounted to ' 21,335.78 crore (previous year
' 22,100.71crore). Sales to such PSUs during the year ended contributed around 99.95% of the total sales (previous
year 99.93%).
Details of Customers who contributed 10% or more to the Company's revenue from operations for individual
segment: -
* Oil India International BV, Netherlands, the wholly owned subsidiary of OIL has 50% stake in a JV company WorldAce
Investments Limited, Cyprus which in turn owns 100% of the voting equity in Stimul-T LLC, a Russian registered legal
entity, which owns block Licence 61 in the Tomsk region of the Russian Federation. Stimul-T LLC filed application
for bankruptcy in the Arbitration Court of Tomsk, Russia on 10th May 2023. The application for Bankruptcy has
been accepted by the Arbitration Court and in its ruling dated 8th November 2023 appointed a Temporary Manager
(Bankruptcy Trustee) and initiated the supervision stage of Bankruptcy which is currently in progress.
**The Company through its subsidiary Oil India International Pte Limited, registered in Singapore invested in oil
blocks in Russia through Joint Venture companies registered in Singapore. The Russian entities have declared
dividends which have been received in bank accounts of Singapore Joint Ventures in Russia. However, on account
of restrictions imposed by the Central Bank of Russia during the reporting period (for now valid till 30th September
2026), the funds cannot be repatriated to Singapore till said restriction is in force.
*** A wholly owned subsidiary in the name of "OIL Green Energy Limited" was incorporated on 31st January 2025. The
company has been formed for energy generation through non-conventional/ renewable sources. The registered
office of the company is in Delhi. The company during the previous year has allotted 50,00,000 number of equity
shares of the face value of ' 10 per share fully paid up to Oil India Limited.
The board of directors of the Company in its meeting held on 07th May 2025 accorded the approval for incorporating
a wholly owned subsidiary (Finance Company) at GIFT city Gujarat to carry on the business in accordance with the
IFSC rules and regulations subject to approval of DIPAM and other applicable regulatory approvals.
Note:
#During the year ended 31.03.2026, the Company decided to exit from 2 overseas blocks in Bangladesh (SS04 &
SS09) and accordingly OIL's share of penalty towards Unfinished Work Program of ' 285.55 crore along with provision
amounting to ' 7.74 crore towards impairment of wells & other assets has been charged to the statement of profit
& loss account.
*The consortium of Oil India Limited (OIL) and Indian Oil Corporation Limited (IOCL) with 50% PI each signed PSC
(SHAKTI-II G-245) with Gabon DGH effecting from 16.01.2014 with OIL as the operator of the block. Phase I of
the PSC has been completed and Phase II started from 16.04.2017. The initial validity of Phase-II of the PSC was
from 16.04.2017 to 15.04.2020, which was subsequently extended by DGH, Gabon till 15.04.2025. On expiry of the
extension on 15.04.2025, the consortium decided to relinquish the block and terminate Production Sharing Contract
after payment of the penalty of USD 10 million towards unfinished work commitments under Phase-II. During year
ended 31.03.2026, OIL's share of penalty towards Unfinished Work Program of ' 44.36 crore (USD 5 million) along
with provision amounting to ' 215.33 crore towards impairment of wells & other assets has been charged to the
statement of profit & loss account.
LEASES
The Company has adopted Ind AS 116 "Leases" with effect from 1st April 2019 and has elected to apply modified
prospective transition approach to measure the right-to-use asset at an amount equal to the lease liability and
initial estimate of decommissioning obligation, if applicable at the date of transition.
The Company has applied Ind AS 116 to hiring contracts of vehicles, rigs, cranes, crawlers, compressors, buildings,
etc. to evaluate whether these contracts contain lease components. Based on the evaluation of the terms and
conditions of the contracts, the Company has evaluated the lease components of such contracts falling under the
purview of Ind AS 116. The lease contracts, with limited exceptions, are recognized in the financial statements by way
of right-of-use assets corresponding lease liabilities and initial estimate of decommissioning obligation. The lease
liabilities were measured at the present value of the remaining lease payment and discounted using Government of
India Bond rate.
The Company had also elected to apply the following practical expedients available under Ind AS 116:
i. Short term leases / Low-value assets: The Company has elected short term leases and low value assets leases
for recognition exemption in terms of Ind AS 116. The Company recognizes the lease rental payment associated
with short term leases and low value assets as expense in the Statement of Profit & Loss. During the year ended
31st March 2026, the expenditure charged to profit & loss statement in respect to short-term leases and low-value
assets are as below:
ii. Discount rate- The Company has applied incremental borrowing rate as discounting factor to each lease of
similar assets in similar economic environment with a similar end rate. The Government of India Bond rate has been
bucketed into 0-3 years, 3-5 years, 5-10 years and above 10 years to different lease contract falling in those periods.
The Company has applied a single discount rate to a portfolio of leases of similar assets in a similar economic
environment with a similar end date.
The contracts such as vehicle hiring, drilling rigs hiring, bundle service contracts, etc. involve a number of additional
services and components including personnel cost, maintenance, drilling related activities, consumables and other
items. In most of such contracts, the additional services/non-lease components constitute significant portion
of the overall contract value. Where the additional services/non-lease components are not separately priced,
the consideration paid has been allocated based on the relative stand-alone prices of the lease and non-lease
components.
Statement of Cash Flow
The expenses on hiring contract of assets are presented as financing activities in the Statement of Cash Flows,
representing payments of principal portion and interest portion of the lease liability.
During the year ended 31st March 2026, contract cost included in Statement of Cash Flows as financing activities is
' 958.47 crore (previous year ' 449.29 crore).
ii. Other matters for which the Company is contingently liable:
Commitments:
(a) Capital Commitments:
(i) The estimated amount of contracts remaining to be executed on Capital Account and not provided for in the
accounts are ' 461.24 crore (previous year ' 187.33 crore).
(ii) The Company's share in the amount of contracts remaining to be executed on Capital Accounts and not
provided for in the account in respect of the un-incorporated Joint Ventures is ' 2.90 crore (previous year Nil).
(iii) The Company's share of Capital Commitment in Non-Operated Joint Venture Block AAP-ON-94/1 is ' 1.22 crore
(previous year Nil).
(iv) The Company's share of Capital Commitment in Non-Operated Joint Venture Block Kharsang-PSC is
' 1.20 crore (previous year ' 21.32 crore).
(b) Other Commitments:
(i) The estimated amount of contracts remaining to be executed on Revenue Account and not provided for in the
accounts are ' 252.88 crore (previous year ' 83.05 crore).
(ii) The balance of Minimum Work Program (MWP) by the Company under Production Sharing Contracts (PSCs) / Revenue
Sharing Contract (RSCs) entered for NELP / HELP / DSF Blocks with Govt. of India is ' 4,371.10 crore (previous year
' 3,515.62 crore). The commitment is partially covered by Bank Guarantee as referred in point no 50.i.(b).(ii).
(iii) The balance of Minimum Work Program (MWP) by the Company under Production Sharing Contracts (PSCs)
entered for overseas Blocks is ' 47.41 crore (previous year ' 442.14 crore).
(iv) Commitment towards Right issue of equity shares of M/s Numaligarh Refinery Limited is ' Nil (previous year
' 550.95 crore).
(v) The Company is required to carry out activities such as infrastructure creation for drinking water supply,
sanitisation, health, education, skill development, roads, cross drains, electrification including solar power, solid
waste management facilities, scientific support and awareness to local farmers to increase yield of crop and
fodder, rain water harvesting, soil moisture conservation works, avenue plantation, plantation in community areas,
etc. under Corporate Environment Responsibility (CER) as per the directions of the Ministry of Environment, Forest
and Climate Change (MoEF&CC), Government of India. The commitments towards these activities are decided
at the time of grant of Environment Clearance based on public hearing conducted, social need assessment etc.
for affected areas around the proposed project. The total commitments of the Company towards Corporate
Environment Responsibility stands at ' 73.94 crore as on 31st March 2026 to be fulfilled over the period of the validity
of the Environment Clearances or as prescribed by MoEF&CC. (' 63.96 crore as on 31st March 2025).
(v) Proved and Proved Developed Reserves of oil (including condensates) and gas are technically assessed
and reviewed in-house at the end of each year in line with international practices. Reserves are audited
by external experts at periodical intervals. For the purpose of estimation of Proved and Proved Developed
Reserves, Deterministic Method is used by the Company. Production pattern analysis, number of additional
wells to be completed, application of enhanced recovery techniques, validity of mining lease agreements,
agreements/MOU for sales are taken into consideration for determining reserves quantity.
NOTE-55
Disclosure under Indian Accounting Standard 36 - Impairment of Assets:
55.1 The Company is primarily engaged in exploration, development and production of crude oil & natural gas.
Cash generating unit (CGU) for impairment testing of Oil & Gas assets are carried out considering fields
as a single CGU except for Rajasthan fields where common facilities are used and impairment testing is
performed in aggregate for Rajasthan Fields.
The Value in Use of producing/developing each field is estimated on the basis of proved and probable
reserves (2P). Where further development of the fields in the CGUs are under progress, expected cost of
future development is also considered while determining the value in use.
In assessing value in use, the estimated future cash flows from the continuing use of assets and from its
disposal at the end of its useful life are discounted to their present value by applying weighted average
cost of capital as discounting rate. (as at March 31st, 2026: 11.05 % and as at March 31st, 2025: 12.04 %).
55.2 The Company after considering the current business conditions make an assessment of future prices of
crude oil and natural gas on the basis of internal and external information / indicators of future economic
conditions. Based on the assessment, recoverable value of the CGUs is higher than carrying amount and
accordingly there is no impairment loss during current period in respect of producing/developing assets.
55.3 The following 2P reserves for respective CGU were considered as a basis for the impairment testing as
at March 31st, 2026:
55.4 As per accounting policy of the Company, impairment provision of Exploratory wells in progress has been
provided amounting to ' 1,341.78 Crore (Previous year: ' 569.06 crore) net of reversal.
55.5 The Company also carried out impairment testing of other CGU units like Pipeline, LPG Plant and Renewable
Energy considering each of these as separate cash generating units. As value in use of these CGU units
were more than the carrying value, there is no impairment loss during the year.
55.6 The Company's investment in subsidiaries, associates and joint ventures are tested for impairment when
there is any significant indication that those investments have suffered an impairment loss. During
the year impairment assessment of such investments was carried out and the recoverable amount of
such investments were more than the carrying value and there is no additional impairment loss on such
investments.
56.3 Working Capital Loan
The Company has been sanctioned working capital limits of ' 250 crore (Fund based) and ' 777.45 crore (non-fund
based) from State Bank of India on the basis of security of current assets. The Company filed stock statement to the
bank on monthly basis. The statement filed by the Company with the bank is in agreement with the books of account
of the Company:
NOTE-57
OTHER DISCLOSURES:
57.1 Physical verification of Property, Plant and Equipment (PPE):
Physical verification of the property, plant and equipment (PPE) is carried out by the Company in a phased manner
over a period of 3 years which will be completed on 31.03.2027. Accordingly, 98.24% of PPE in terms of value has
been physically verified during the year ended 31.03.2026. A Provision of ' 6.30 Crore (previous year ' 7.84 crore) has
been created towards discrepancies found during physical verification of PPE.
57.2 Information as per Indian Accounting Standard (Ind AS) 23 "Borrowing Costs"
Finance cost on lease liability capitalized to wells during the Year ended 31st March, 2026 is ' 47.57 crore (previous
year ' 28.14 crore).
57.3 Disclosure on Expiry of Power Purchase Agreement (PPA)
The Company entered into Power Purchase Agreement (PPA) with Jodhpur Vidyut Vitaran Nigam Limited (JdVVNL) for
supply of electricity generated from solar power plants validity of which expired on 31st March 2019. The Company vide
letter no R/TS/RE/2019-80 dated 26th March 2019, submitted its request for extension of validity of the PPAs of both the
Solar Power Plants for the remaining useful life to Rajasthan Urja Vikas Nigam Limited (RUVNL), under the Renewable
Energy Certificate and Renewable Purchase Obligation Compliance Framework which is yet to be finalized.
In view of inordinate delay in response from JdVVNL in execution of the agreement, the Company has filed a writ
petition with Hon'ble Rajasthan High Court, Jaipur Bench for finalization of Power Purchase Agreement. During the
hearing held on 5th November 2019, Hon'ble Rajasthan High Court, Jaipur Bench ordered that pending disposal of the
writ petition, the joint meter reading reports shall be signed, without prejudice to the rights of the either party. The
case was listed for hearing on 19.12.2025. An Amendment Application to the Writ Petition filed by OIL, particularly in
respect of challenging the Notification dated 14.11.2019 issued by Government of Rajasthan etc, has been allowed.
OIL has also filed an application seeking interim relief which is currently pending. The matter was last listed for
hearing on several occasions and further adjourned to 06.05.2026.
The sale of renewable energy as disclosed in Note 33 of the financial statement includes an amount of ' 6.92 crore for
FY 2025-26 (previous year ' 6.56 crore) in respect of sale of renewable power from solar power plants. The revenue
has been recognised as per the rate prescribed (' 3.14 per unit) by the Hon'ble Rajasthan Electricity Regulatory
Commission (RERC) pending renewal of the Power Purchase Agreement (PPA) with JdVVNL. Any adjustment arising
on finalisation of the PPA will be accounted in the year of incidence. As per the estimates of the management, the
adjustments to the final price will not be material upon execution of PPA.
57.4 Balance Confirmation
The Company has a system of obtaining periodic confirmation of balances from banks and other parties. Further,
some balances of Trade and Other Receivables, Trade and Other Payables and Loans are subject to confirmation/
reconciliation. Adjustments, if any, is being accounted for on confirmation/reconciliation of the same, which
otherwise do not have a material impact.
57.5 Arrear crude oil transportation revenue and tariff revision.
The Company is engaged in the business of transportation of crude oil to the north-east refineries. During the year
transportation tariff was revised with one of its customers Numaligarh Refinery Limited effective from FY 2018-19.
Accordingly, arrear income upto 31st March 2025 in this regard amounting to ' 263.11 crore has been recognised during
the financial year 2025-26. Further, revision of tariff with other customers namely, Oil & Natural Gas Corporation
Limited and Indian Oil Corporation Limited is underway.
The Company is also engaged in the business of transportation of imported crude oil of Indian Oil Corporation Limited
(IOCL) through its crude oil trunk pipeline from Barauni, Bihar to IOCL's refineries at Bongaigaon and Guwahati. Tariff
for the aforesaid transportation segment was finalised during the financial year 2022-23, as mutually agreed upon
by both the parties. Accordingly, OIL has been raising invoices at revised rates for crude oil transportation to IOCL
from July 2022. Pending signing of the Crude Oil Transportation Agreement (COTA), IOCL has withheld ' 119.16 crore
(being 10% of the Invoice amount) from the regular transportation bills as on 31st March, 2026.
57.6 OIDB Loan Assistance to M/s IGGL
In Pursuance of the approval granted by Oil Industry Development Board (OID Board) in its 103rd meeting held on 16th
August, 2021 for OIDB loan assistance of ' 2,594 crore (Rupees Two Thousand Five Hundred Ninety-Four Crore) to
M/s Indradhanush Gas Grid Limited (IGGL), a company promoted by GAIL (India) Ltd., Indian Oil Corporation Ltd.,
Oil & Natural Gas Corporation Ltd., Oil India Ltd. and Numaligarh Refinery Ltd. with a share of 20% each. Oil India
Limited, being one of the promoters, have provided an unconditional and unequivocal guarantee to pay an amount
of ' 518.80 crore to OIDB in the event of M/s Indradhanush Gas Grid Limited (IGGL), the borrower, being unable to
fulfil its obligation for repayment of loan amounting to ' 2,594 crore & interest accrued thereon on the due dates and
other monies payable by the said borrower to OIDB in accordance with terms and conditions of the Loan agreement
executed between OIDB and IGGL. The Corporate Guarantee will remain valid and unrevoked till the loan & interest is
57.7 Disclosure on Debt Service Undertaking of Mozambique Area 1 Project
Mozambique Area 1 project, wherein OIL has a participating interest (PI) of 4% through BREML, has secured project
finance debt commitment under Export Credit Agencies (ECA) Direct Loans, ECA Covered Facilities, Commercial
Bank Facilities and a Loan Facility from African Development Bank. It is one of the condition precedents under
project finance arrangement to provide Debt Service Undertaking (DSU) by each of the sponsors of the project. OIL
as a DSU provider undertakes to pay its portion of obligation which is equal to pro-rata share of aggregate amount
of advances at a given point in time based on its PI in the project. In case of OIL, the maximum amount that may
be claimed by the Senior creditors has been capped at US$ 768 Million. As on 31st March 2026, debt of US$ 287.30
Million (US$ 199.30 Million drawn on 26th March 2021 and US$ 88 Million drawn on 1st April 2021) has been drawn from
the lenders at project level. OIL's share of DSU for its 4% share is US$ 11.49 Million.
57.8 Service Tax and GST on Royalty payment:
Service Tax demand was raised on the Company for the period March, 2016 to June, 2017 seeking to levy Service Tax
on Royalty paid on Crude Oil & Natural Gas under the Oil Fields (Regulation & Development) Act, 1948 for the States
of Assam, Arunachal Pradesh and Rajasthan. The Company has challenged the demand on various grounds by filing
writ petitions before different High Courts. However, pending adjudication of the Writs, the Company has deposited
under protest the entire Service Tax demand of ' 257.13 crore.
Goods and Services Tax (GST) was implemented w.e.f. 1st July, 2017 and as per the FAQs on Government Services issued by
CBIC, GST is payable on Royalty paid for assignment of right to use natural resources. However, based on a legal opinion
obtained by the Company, Service tax/GST is not payable on Royalty payable/paid under the Oil Fields (Regulation &
Development) Act, 1948. The Company has accordingly filed Writ Petitions in different High Courts challenging such levy.
Further, the Hon'ble Gauhati High Court, vide its interim order dated 2nd November, 2021 has granted stay on the GST
on royalty payments made by the Company in the State of Assam until further orders. Keeping in view the jurisdiction
of Gauhati High Court, the Company has submitted a representation to GST Department, Arunachal Pradesh and the
payment of gSt on this account in the state of Arunachal Pradesh is presently on hold.
The total GST amount deposited under protest till 31st March 2026 is ' 1264.45 crore. Further out of the above-
mentioned amount the Company has received refund of ' 24.42 crore in the State of Assam.
All pending cases of the Company before Gauhati High Court and Rajasthan High Court were transferred to Hon'ble
Supreme Court for hearing by the Nine Judge Constitution Bench. However, Hon'ble Supreme Court vide its order dated
14th March 2024 has de-tagged the cases from the civil appeals Nos. 4056-4064/1999. The Hon'ble Supreme Court vide
its order dated 25.07.2024 on a similar case under the Mines and Minerals (Development and Regulation) Act (MMDR Act)
has, inter-alia, stated that royalty paid under MMDR Act is not a tax. However, the nature of royalty paid under Oilfields
(Regulation and Development) Act is to be decided by the Court separately as it has the distinct constitutional provision.
In view of the substantial time lapsed in litigating the matter, uncertainty involved in securing favourable decision
and accumulation of a huge amount, the Company had internally reviewed the matter and made a provision towards
Service Tax/ GST on royalty on the ground of prudence and conservative principle. The amount provided for the
quarter ending 31st March 2026 is ' 243.79 crore which includes an interest of ' 96.97 crore (' 865.12 crore including
interest of ' 360.42 crore for the twelve months ended 31st March 2026). The total amount provided on account of
disputed service tax/GST on royalty till 31st March 2026 is ' 4753.77 crore.
However, pending adjudication of the matter, the service tax /GST paid under protest has been/ being claimed as an
allowable deduction under the Income Tax Act, 1961.
57.9 Stamp duty and Registration charges of PML:
Revenue & DM Department, Government of Assam issued one Office Memorandum (OM) No. E-274398/2023/85
dated 1st September, 2023 on the process of determining the value of consideration for calculation of stamp duty
and registration fees for registering the deeds of Mining Leases of Oil, Natural Gas, Coal and other minerals including
renewal of the mining lease. At present stamp duty and registration charges of the PML areas are calculated and
paid based on dead rent. But the OM suggests to calculate the same on the basis of average annual royalty payable
over the lease period for the approved production quantity for the PML area instead of dead rent as it is not in
conformity with the statutory provisions under the Indian Stamp Act.
The change in methodology will have a significant impact on the amount of stamp duty and registration charges
which cannot be reliably ascertained. The Company is of the opinion that calculation of stamp duty and registration
charges on the basis of dead rent is in accordance with the provisions of the applicable Acts and Rules. The present
move to alter the basis and relate the same to estimated production over lease period appears contrary to the
provisions of the related Acts and Rules. The Company submitted its representation to the Government of Assam in
this regard. No demand notice has been received from the department concerned relating to any grant/renewal of
the PML areas of the Company.
Further, opinion from Additional Solicitor General of India (ASGI) was sought regarding validity of the above OM
issued by Government of Assam and ASGI in its opinion dated 24.12.2024 had clarified that the proviso to section
26 of Indian Stamp Act applies to a situation where the royalty is received as a rent or a part of the rent. However,
there is a special act, i.e., The Oil Field (Regulation and Development) Act, 1948 (ORDA) for regulation of oilfields
and payment of royalty. Rent would be payable regardless of whether the property is worked upon or not and is
not contingent on the discovery and production of crude oil & natural gas. On the other hand, the value of royalty
is always variable depending on the outcome of the production of mineral oil and therefore is always likely to be
indeterminate at the date of execution of the mining lease. Hence, he opined that section 26 of Indian Stamp Act is
not attracted to Petroleum Mining Lease and therefore inclusion of royalty for the purpose of calculation of stamp
duty is not justified and valid.
Accordingly in absence of any demand / clarity on the issue, the amount of firm liability or contingent liability arising
due to above OM issued by Government of Assam is unascertainable.
57.10 Special Additional Excise Duty (SAED):
Government of India (GoI) vide notification no. 05/2022 dated 30th June, 2022 had levied Special Additional Excise Duty
(SAED) on crude oil with effect from 1st July, 2022 which has been revised and notified by GoI from time to time. During
the current financial year, an amount of ' Nil (previous year ' 780.32 crore) related to SAED, calculated on the applicable
quantity excluding such quantity of crude oil produced by the Company which is in excess of crude oil produced during
the preceding financial year has been charged to Statement of Profit & Loss under head "Excise Duty".
57.11 Flaring of Natural Gas
Director General of Hydrocarbon (DGH) vide its letter dated 04.01.2022 advised the Company to ensure payment of
royalty on the entire volume of natural gas saved and sold i.e. except for natural gas which is unavoidably lost or is
returned to the reservoir or is used for drilling or other operations relating to the production of petroleum, or natural
gas, or both as per Section 6A(3) of the Oilfields (Regulation & Development)Act, 1948 (ORD Act).
As per assessment of the management, the entire flaring of natural gas is unavoidable in nature and therefore
exempted from payment of royalty as per the provisions of the ORD Act referred above. Accordingly, no royalty has
been paid on the gas flared which is unavoidably lost.
57.12 Details of charge:
The Company has created a charge against the Current Assets to the tune of ' 1,027.45 crore (corresponding period
' 1,027.45 crore) for availing Cash Credit/Letter of Credit/Bank Guarantee Facility.
57.13 New Labour Codes
The Government of India has consolidated 29 existing labour laws into a single framework consisting of four labour codes:
the Code on Wages, 2019; the Code on Social Security, 2020; the Industrial Relations Code, 2020; and the Occupational
Safety, Health and Working Conditions Code, 2020 (collectively, the "New Labour Codes"). The New Labour Codes came
into effect on 21st November 2025. The corresponding rules under these codes are notified on 8th May 2026.
The Company has estimated and recognised the impact of implementation of the new labour codes for the year
ended 31st March 2026. The impact of the same is not material to the results for the year.
57.14 Gratuity to employees is payable for each completed year of service after completing the prescribed vesting
period. With effect from 01.10.2025, in accordance with the recommendations of the 3rd Pay Revision Committee
for CPSEs, the gratuity ceiling was enhanced from ' 0.20 crore to ' 0.25 crore pursuant to the rate of Industrial
Dearness Allowance (IDA) exceeding 50%. The said increase in the gratuity ceiling has been implemented by the
Company and the liability as on 31.03.2026 for the same has been recognized on the basis of actuarial valuation in
line with the requirements of Ind AS 19 on Employee Benefits.
57.15 Figures of previous year have been regrouped/reclassified, wherever necessary, to conform to current year
classification.
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