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Oil India Ltd.

BSE: 533106 Sector: Oil & Gas
NSE: OIL ISIN Code: INE274J01014
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OPEN 344.50
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VOLUME 10345
52-Week high 367.43
52-Week low 258.00
P/E 9.77
Mkt Cap.(Rs cr) 25,944
Buy Price 342.90
Buy Qty 464.00
Sell Price 0.00
Sell Qty 0.00
OPEN 344.50
CLOSE 344.95
VOLUME 10345
52-Week high 367.43
52-Week low 258.00
P/E 9.77
Mkt Cap.(Rs cr) 25,944
Buy Price 342.90
Buy Qty 464.00
Sell Price 0.00
Sell Qty 0.00

Oil India Ltd. (OIL) - Director Report

Company director report

Dear Members

On behalf of the Board of Directors I hereby present the 57th Annual Report on theoperations of the Company containing Audited Statements of Accounts together with theAuditors’ Report and Comments of the Comptroller and Auditor General of India for theyear ended March 31 2016.

1. SIGNIFICANT HIGHLIGHTS

The financial and operational performance of the Company is as under:-

A. Financial Highlights

During the year OIL has earned total revenue of Rs. 11140.77 crore as against Rs.11019.86 crore in FY15. The Profit before Tax (PBT) in FY16 was Rs.3463.44 crore againstPBT of Rs. 3728.70 crore in the FY15. Profit after Tax (PAT) was Rs. 2330.11 crore in FY16against PAT of Rs. 2510.20 crore in FY15.

Profitability of the Company was affected mainly on account of impairment ofinvestments in overseas projects resulting from fall in crude prices. The summarizedStatement of Profit and Loss is given below:

Particulars Financial year 2016 Financial year 2015
Income from Operations 9764.87 9748.23
Other income 1375.90 1271.63
EBDITA 4990.73 4802.02
Finance Cost 346.90 340.68
Depreciation Depletion and Amortization 966.06 732.64
Exceptional Items 215.13 -
Profit before Tax (PBT) 3463.44 3728.70
Profit after Tax (PAT) 2330.11 2510.20
Appropriations
Interim Dividend 480.91 601.14
Tax on Interim Dividend 97.90 120.19
Proposed Final Dividend 480.91 601.14
Tax on Proposed Dividend 97.90 122.38
Transfer to Debenture
Redemption Reserve 264.79 236.96
Transfer to General Reserve 907.70 828.39

During the year Company has made planned investment of Rs. 3622 crore against budgetestimates of Rs. 3917 crore which is expected to increase in future with the increase inexploratory and operational activities.

B. Operational Highlights

(i) Crude Oil Production

During the year crude oil production was 3.247 MMT (inclusive of production fromKharsang JVC) as against production of 3.440 MMT in FY 15. Main reason for shortfall inachievement can be attributed to (a) more than expected decline rate from the maturefields (b) less than planned retrieval through drilling and workover efforts and (iii)Direct losses arising out of Bandhs Blockades miscreants activities etc.

(ii) Natural Gas Production

The natural gas production was 2838 MMSCM in FY16 against 2722 MMSCM in FY15 which ishigher by 4.26%. The sale of natural gas was 2314 against 2181 MMSCM in FY15. This is thehighest ever production and sale of natural gas in the history of OIL.

(iii) LPG Production

During FY16 LPG production was 41030 MT against 43570 MT in FY15. The sale of LPG was41172 MT against 43456 MT in FY15.

(iv) Pipeline Operations

During the year OIL’s crude oil pipeline transported a total of 6.37 MMT of crudeoil out of which Naharkatia-Bongaigaon sector transported 3.21 MMT of OIL crude and 0.93MMT of ONGC crude. Barauni-Bongaigaon sector transported 2.23 MMT of imported crude. OILhas also transported 1.74 MMT of products through Numaligarh-Siliguri Product Pipeline.

(v) Renewable Energy

During FY16 OIL commissioned its second Solar Energy Power Project of 9 MWp Capacityat Ramgarh Jaisalmer Rajasthan. The Project was commissioned on 25th Feb 2016 and withthe commissioning of this project the total Renewable Energy Installed Capacity of theCompany stands at 135.6 MW comprising of 121.6 MW of Wind and 14 MW of Solar Projects .

During FY16 OIL generated a revenue of approximately Rs. 105.5 crore from thecommercial renewable energy projects which includes revenues accrued from the Wind aswell as Solar Plants .

The 5 MW Solar Power Plant at Ramgarh Jaisalmer Rajasthan produced 9 Million Units ofElectricity which was sold to Jodhpur Vidyut Vitaran Nigam Limited Government ofRajasthan.

The 9 MW Solar Power Plant at Ramgarh Jaisalmer Rajasthan produced 1.52 Million Unitsof Electricity which was sold to Jodhpur Vidyut Vitaran Nigam Limited Government ofRajasthan.

The 13.6 MW Wind Farm at Ludurva Jaisalmer Rajasthan produced 18.25 Million Units ofElectricity which was sold to Jaipur Vidyut Vitaran Nigam Limited Government ofRajasthan.

The 54 MW Wind Farm at Dangri Jaisalmer Rajasthan produced 67.78 Million Units ofElectricity which was sold to Jaipur Vidyut Vitaran Nigam Limited Government ofRajasthan.

The 16 MW Wind Farm at Patan Gujarat produced 34.58 million units of Electricity whichwas sold to Gujarat Urja Vikas Nigam Limited Government of Gujarat.

The 38 MW Wind Farm at Chandgarh Madhya Pradesh produced 71.35 Million Units ofElectricity which was sold to Madhya Pradesh Power Management Company Limited Governmentof Madhya Pradesh.

Note : 1 Unit = 1 kilo-watt-hr

During FY16 OIL also initiated steps to undertake another 50 MW+10% Wind Energy PowerProject in the state of Gujarat and/or Madhya Pradesh.

Further work on the second phase of the Wind Resource Assessment (WRA) exercise inAssam being sponsored by OIL has also progressed with the phase-wise Installation andCommissioning of Wind Masts and other ancillary infrastructure at the designated sites.

C. Exploration Highlights

Your Company has drilled 16 (sixteen) Exploratory Wells and carried out 2D & 3DSeismic Survey to identify New Prospects in the Petroleum Mining Lease areas of UpperAssam Basin including spreading exploratory efforts by drilling 5(five) wells in the NELP

Blocks MZ-ONN-2004/1 RJ-ONN-2004/2 & RJ-ONN-2005/2. With the spud-in of the firstHigh Pressure High Temperature well in the block KG-ONN-2004/1 Your Company has steppedinto a new frontier which is likely to add value to the already discovered gas in thearea. The Appraisal Plan for the discovery made in 2014-15 in the NELP Block KG-ONN-2004/1was also submitted to the Regulator. Further all pre-drill preparatory works to spud-inthe deepwater offshore well in the NELP Block CY-OSN-2009/2 were in advanced stage ofcompletion and is expected to be spud-in the first quarter of the next financial year.

During the year your Company has made 6 (six) discoveries in the Upper Assam Basin ofwhich one discovery is expected to be of significant extent and steps have been initiatedfor quick appraisal and production from the said find.

In overseas 1213 LKM of 2D Seismic Data have been acquired in the Shakthi-II Block ofGabon the interpretation of which is in progress to identify New Prospects. New discoveryin the Block will quicken the process of monetisation of Lassa oil discovery.Pre-explorations studies are in progress in the 2 (two) offshore blocks of Myanmar to helpthe Company to decide about entry in Exploration Phase.

2. ACREAGE

Your Company’s in-country operations are spread over the onshore PetroleumExploration License (PEL) and Petroleum Mining Lease (PML) areas in the states of AssamArunachal Pradesh Mizoram Andhra Pradesh Puduchery and Rajasthan. Besides your Companyhas ventured into shallow and deep water areas in KG Basin Cauvery Andaman Mumbai andGujarat-Kutch offshore either jointly or in partnership with other consortium partners.

Your Company is operating in 5 (five) PEL and 22 (twenty two) PML areas allotted underthe nomination regime in the states of Assam Arunachal Pradesh and Rajasthan. Inaddition as on 31.03.2016 your Company holds Participating Interest (PI) in total of 18NELP Blocks with the right of Operatorship / Joint Operatorship in 10 Blocks and theremaining 8 (eight) Blocks as a Non-operator. In addition your Company holds 40% PI in theJV Block of Kharsang PSC 44.086% PI in Pre-NELP block AAP-ON-94/1 and 90% PI in the CBMBlock AS-CBM-2008/IV in the Upper Assam Basin.

Your Company also holds PI in the Onshore Block Shakthi-II in Gabon covering an area of3761.25 Sq. Km. and the Offshore Blocks M-4 & YEB in Myanmar covering an approximatearea of 31678 Sq. Km. alongwith the right of operatorship in all these Blocks.

3. OIL AND GAS RESERVES

Your Company has strong oil and gas reserves base for the domestic assets including JVsas furnished below:

Particulars 1P 2P 3P
Oil + Condensate (MMT) 28.3828 80.7443 109.8106
Balance Recoverable Gas (BCM) * 70.3646 119.4555 157.5142
O+OEG (MMTOE) 89.7208 184.0209 244.6779

* Of these based on projected volume of gas under various sales contracts 1P 2P and3P Gas Reserves are 22.3630 42.3140 and 62.3590 BCM respectively.

4. CAPITAL STRUCTURE

The paid-up capital of the Company is Rs 601.14 crore divided into 601135955 sharesof Rs.10/- each with Government of India holding of 67.64% of total paid up capital. TheEarning per Share (EPS) of the Company as on March 31 2016 is Rs. 38.76 as compared toRs. 41.76 at the end of previous financial year.

5. DIVIDEND

Based on the provisional financial trend your Company paid Interim Dividend @ 80%amounting to Rs. 480.91 crore for the FY 2015-16. The Board of Directors are now pleasedto recommend a final dividend @80% on the paid up capital for the FY 2015-16 subject tothe approval of the shareholders at the ensuing Annual General Meeting.

6. CREDIT RATINGS

The Company’s financial prudence is reflected in the strong credit rating ascribedby ratings agencies as given below:

Category Rating Agency Rating Remark
Long Term Rating Moody’s Investor Service Baa2 (Stable) One notch above India’s sovereign rating
Long Term Rating Fitch Ratings ‘BBB-’ (Stable) At par with India’s sovereign rating
Long Term Facilities CARE Ratings CARE Highest Rating awarded by CARE
AAA
Short Term Facilities CARE Ratings CARE Highest Rating awarded by CARE
A1+

7. DETAILS OF THE LOANS GUARANTEES OR INVESTMENTS/DEPOSITS

Particulars of investment made loans extended guarantees and securities providedalong with the purpose for which the loan or guarantee or security is proposed to beutilized by the recipient are provided in the standalone financial statements. (Pleaserefer to Note No 14 15 21 & 32.15 to the standalone financial statements}.

8. RELATED PARTY TRANSACTIONS

All contracts / arrangements / transactions entered by the Company during FY16 withrelated parties were in ordinary course of business and at arm’s length basis.

The policy on materiality of related party transactions and dealing with related partytransactions as approved by the Board may be accessed on the Company’s website atwww.oil-india.com. Attention is also invited to Note 32.4 to the financial statements andForm AOC-2 attached here with.

9. HUMAN ASSETS

Human Resource Management at OIL is an integrated approach focusing onOrganization’s faith to work with people and work through them to manage change andstrive for continued excellence. OIL works towards building positive employee-organizationrelationship through nurturing initiatives innovations and aspirations with best HRpractices and commitment and provide professional working environment. HR policies andpractices are always sensitive to employee needs. As on 31st March 2016 Company has 7532employees consisting of 1457 Executives and 6075 Unionised Employees in the Company.

10. SPORTS

OIL believes that sports today is an integral part of all round development of humanpersonality and achieving excellence in sports has real bearing on national prestige andmorale. Therefore employees are encouraged to play and excel in sports. As a result ofabove encouragement Oil India Limited participated in National and International SportsEvents in Football Volleyball Table Tennis Cricket Chess etc. and brought laurels tothe Company. Oil India Limited actively supports and promotes sports under the umbrella ofPetroleum Sports Promotion Board (PSPB) and also under various Government of Indiarecognized bodies.

11. IMPLEMENTATION OF GOVERNMENT

DIRECTIVES FOR PRIORITY SECTIONS

The Company attempts to comply with the directives of the Government of India forpriority sections of the society. The representations of various priority sections inExecutive and Unionized Employees categories in the

CATEGORY SC ST

OBC Minority PWD Women

Executives 195 125 323 115 08 134
Unionized
Employees 410 765 1850 377 77 225
Total 605 890 2173 492 85 359

(RAJBHASHA)

In pursuance of Official Language Policy / Act / Rules / Orders of the Govt. of Indiaefforts are continuing towards increasing the use of Hindi in Official work. HindiWorkshops were conducted regularly so as to enable officers and employees to work in Hindiconveniently and efficiently. Meetings of Official Language Implementation Committee wereheld in each quarter. The responsibility of the Chairmanship of Duliajan Town OfficialLanguage Implementation Committee (TOLIC) was also borne by our Company. In-house Journal"OIL NEWS" was published in Trilingual form i.e. Assamese Hindi and English.In-house Hindi Journal "OIL KIRAN" was also published in Hindi . Hindi Month wasobserved in a befitting manner in all spheres of OIL. To propagate Official LanguageHindi amongst employees and school going children various literary competitions wereheld during Hindi Month Celebration. Important documents to be laid on the table ofParliament were also brought out in bilingual form.

16. PUBLIC PROCUREMENT POLICY FOR MICRO

& SMALL ENTERPRISES (MSEs)

1. OIL's Annual plan for procurement of goods and services from MSEs during the year 2016-17 : Rs. 125 Crores
2. Achievement:
a) Total value of goods and Crore Goods: Rs.121.16
services procured from MSEs (including MSEs owned by SC/ST entrepreneurs) : Services : Rs.32 Crore
b) % age of procurement from : Goods : 24.98%
MSE (including MSEs owned by SC/ST entrepreneurs) out of total procurement : Services : 2.16%

17. VIGILANCE

Chief Vigilance Officer head of the Vigilance wing functions as link between CVC CBIand Management and acts as advisor to head of the Organisation on Vigilance matters.Vigilance placed main thrust on the preventive vigilance rather than punitive vigilance.Towards this objective system improvement measures were undertaken on the basis ofscrutiny of various Contracts & Purchases inspections of installations both regularand surprise. CTE type intensive examinations were also carried out. The department alsoassisted in a CTE inspection carried out by CTE of CVC. Corrective measures were suggestedbased on the findings. Further based on registered complaints received by the Departmentfrom various sources including the CVC and the Ministry time to time investigations werealso done besides suggesting the necessary action to the organization.

During the year 2015-16 to create awareness and to sensitize employees of theorganization about the rules and regulations on Contracts & Procurement proceduresConduct Discipline & Appeal Rules; twenty one programs were conducted in variousspheres of the organization covering around 383 employees. The programs included"Keep in Touch" (KIT) Catch Them Young (CTY) and "Vigilance SensitisationPrograms".

During the year as per CVC’s directive Vigilance Awareness Week (VAW) wasorganized from 26th to 31st October at the registered Office & Field Head Quarters(FHQ) Duliajan (Assam) Pipeline Head Quarters-Guwahati (Assam) Project Offices (atJodhpur Bhubaneswar and KGB Project at Kakinada) Branch Office at Kolkata besides theCorporate Office Noida. This year the theme was "Preventive Vigilance as a tool ofGood Governance". At Corporate Office Noida Vigilance Pledge had been administeredon 26th October by CMD OIL and by the respective Administrative Heads at other workspheres / installations of OIL. During this week cycle rallies and the padayatra(procession) were marked at Corporate Office Noida FHQ & PHQ with chanting ofanti-corruption slogans to create vigilance awareness amongst the general public. Apartfrom the pledge taking various other programs / competitions were organized befitting theoccasion amongst OIL employees their spouses and their children. Two interactive sessionswere organized with CVO amongst the executives at Corporate Office and at FHQ.

As per renewed directive of the commission various "outreach" programs werealso conducted for the young generation. Programs included competitions for on the spotpainting essay writing debating poster making cartoon slogan writing elocutionscience model making in Vishwa Bharti Public School and Delhi Public School of GreaterNoida along with other participating Schools and Colleges of Duliajan & Guwahati inAssam. As new initiatives Vendors' Meets had been organized giving special attention tounsuccessful vendors as was done in the last year. Quarterly issues of in-house VigilanceJournal ‘In- Touch’ along with a special issue were published during the year.

18. RESEARCH AND DEVELOPMENT

The Company accords utmost importance to upgradation of technologies and expertise invarious areas of activities through its own Research & Development Centre. A number ofstudies and projects in the field of IOR/EOR well stimulation water shut-off Oil fieldchemicals and work over & drilling fluids produced water management flow assurance& paraffin control Geochemistry Petroleum Biotechnology Un-coventional Hydrocarbonetc. carried out and benefits have been derived by the Company. A number of R&Dprojects featured as MoU projects which were completed within stipulated timeframe for"Excellent" MoU ratings.

In FY 2016 Company has filed two patents namely "Stepwise Pyrolysis GC Techniqueto evaluate hydrocarbon potential of organically rich shale at different maturitylevels" and "Method for Quantification of Low Wax Crude". A total of Rs46.76 Crores has been spent on R&D initiatives during the year.

19. SUBSIDIARIES/ COMPANIES IN WHICH OIL

HAS SHAREHOLDING

Subsidiaries

(i) Oil India Sweden AB

Oil India Sweden AB is a wholly owned subsidiary of Oil India Limited. The company wasincorporated on the 20th November 2009 as a private limited company (AB). The activitiesof the Company are: to own shares in other companies perform administrative tasks andassociated activities; to incorporate to participate in and to finance companies orbusinesses etc.

(ii) Oil India Cyprus Ltd.

Oil India Cyprus Limited was incorporated in Cyprus on 21st October 2011 as a privatelimited liability Company under the Cyprus Companies Law Cap. 113. Oil India Limitedholds 76% of the Share Capital of the Company. The balance 24% is held by Oil India SwedenAB.

(iii) Oil India (USA) Inc.

Oil India (USA) Inc. is a wholly owned subsidiary of OIL incorporated on 26th September2012 having its Office at Houston USA. It holds 20% stake in Niobrara Shale Oil and GasAsset.

(iv) Oil India International Limited (OIIL)

OIIL a 100% subsidiary of Oil India Limited was incorporated on 20th September 2013.The registered office of OIIL is situated in New Delhi.

(v) Oil India International B.V (OIIBV)

Oil India International B.V a 100% subsidiary of OIL was incorporated in Netherlandson 2nd May 2014.

(vi) Oil India International Pte. Ltd.

Oil India International Pte. Ltd. is a wholly owned subsidiary of Oil India Limited.The company is incorporated in Singapore on 6th May 2016 as a private company limited byshares. The activities of the Company are: to act as investment holding company and CrudePetroleum and Natural Gas Production.

Companies in which OIL has shareholding:

(i) Numaligarh Refinery Ltd (NRL)

Numaligarh Refinery Limited was incorporated in 1993. NRL is a Category -I Mini RatnaPSU having a 3 MMTPA Refinery at Numaligarh in Golaghat District of Assam. The Company isa subsidiary of Bharat Petroleum Corporation Limited. OIL is holding 26% of the paid upequity in NRL.

(ii) Brahmputra Cracker and Polymer Ltd (BCPL)

BCPL was incorporated on January 8 2007 with the objective of establishing a gascracker project complex at Lepetkata DibrugarhAssam inter alia to process natural gasnaphtha or any petroleum product and to distribute and market petrochemical products inIndia and abroad. The registered office of BCPL is located at Guwahati Assam. OIL holds10% equity share capital of BCPL.

(iii) Suntera Nigeria 205 Ltd.

OIL acquired a 25% equity stake in Suntera Nigeria 205 Limited Nigeria pursuant to aShare Purchase Agreement signed with Suntera Cyprus and IOCL on August 31 2006. SunteraNigeria 205 Limited was incorporated with the main object to engage in the petroleumbusiness including the prospecting and exploration for and production and development ofcrude oil and natural gas. The registered office of Suntera Nigeria is at Nigeria.

(iv) DNP Ltd.

DNP Limited was incorporated on 15th June 2007. The main object of DNP Limited isacquisition transportation and distribution of natural gas in all forms. The registeredoffice of DNP Limited is situated at Guwahati Assam. OIL holds 23% equity share capitalof DNP Limited.

(v) IndOil Netherlands B.V

Oil India Sweden AB owns 50% of the shares in Indoil Netherlands B.V which in turnholds 7 per cent equity interest in Petrocarabobo SA (joint venture company) ProjectCarabobo-1 Venezuela. The principal activity of Indoil Netherlands B.V. is makinginvestment in companies engaged in exploration production marketing trade transportand extraction of oil gas hydrocarbons and minerals.

(vi) Beas Rovuma Energy Mozambique Ltd. (BREML)

OIL holds 40% share in BREML. BREML holds 10% PI in the Rovuma Area 1 Offshore Block inMozambique.

(vii) WorldAce Investments Ltd.

OIL (through OIIBV) holds 50% share in World Ace Investments Ltd a companyincorporated in Cyprus. World Ace Investments Ltd. holds 100% share in LLC

Stimul-T Russia which is the license holder for License 61 Tomsk Region Russia.

(viii)Vankor India Pte. Ltd.

Oil India Limited (through Oil India International Pte. Ltd.) holds 33.5% share inVankor India Pte. Ltd. a company incorporated in Singapore on 23rd May 2016. Theactivities of the Company are: to act as investment holding company and Crude Petroleumand Natural Gas Production.

(ix) Taas India Pte. Ltd.

Oil India Limited (through Oil India International Pte.

Ltd.) holds 33.5% share in Taas India Pte. Ltd. a company incorporated in Singaporeon 23rd May 2016. The activities of the Company are: to act as investment holding companyand Crude Petroleum and Natural Gas Production.

A report on the performance and financial position of the subsidiaries associates andJoint venture Companies of OIL as per prescribed format (Form AOC1) of the Companies Act2013 forms part of this annual report.

20. STATUTORY REQUIREMENTS

Your Directors have made necessary disclosures as required under various provisions ofthe Companies Act 2013 and SEBI (LODR) Regulations 2015. Information on the conservationof energy technology absorption R&D foreign exchange earnings & outgo etc. asrequired under Section 134 of the Companies Act 2013 and the rules made thereunder isgiven in the Annexure forming part of this Report. In view of the exemptions to theGovernment Companies from applicability of the section 197 of the Act by the Government ofIndia OIL is not required to annex the details of the Employees who drew remunerationexceeding the limits laid down in the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014.

21. STATUTORY AUDITORS COST AUDITORS AND SECRETARIAL AUDITORS

The Statutory Auditors of your Company are appointed by the Comptroller & AuditorGeneral of India (C&AG). M/s. A.K.Sabat & Co. and M/s N. C. Banerjee & Co.were appointed as Joint Statutory Auditors for the financial year 2015-16. Comments of theC&AG forms part of this Report.

The Cost Audit Report for the financial year 2014-15 was filed within the statutorytime limit. M/s Chandra Wadhwa & Co. is the Cost Auditor of the Company for thefinancial year 2015-16. The report is being finalized and will be filed as per theschedule.

Secretarial Compliance Report confirming compliance to the applicable provisions of theCompanies Act 2013 SEBI (LODR) Regulations 2015 Listing Agreement SEBI guidelines andall other relevant rules and regulations relating to Capital Market of M/s RMG AssociatesPracticing Company Secretaries is annexed. With respect to the qualification about thecomposition of the Board of Directors OIL requested MOP&NG to appoint appropriatenumber of Independent Directors on the Board of the Company.

22. EXTRACTS OF ANNUAL RETURN

The extracts of the Annual Return are attached herewith as Annexure (Form MGT-9) tothis Report.

23. AWARDS AND RECOGNITIONS

Oil India Limited was conferred with the following recognitions and awards/accoladesby different agencies during the year 2015-16:

1. Credit Rating Agencies Moody’s and Fitch reaffirmed Oil India Limited’sCredit Ratings. While Moody’s Investor Service rated Oil India Limited as Baa2(Stable) Fitch rated the Company as BBB-(Stable)

2. Ranking of #222 in the Platts Top 250 Global Energy Company Rankings for 2015 andranking of 68th in the Asia Companies declared at the (13th) Annual Platts Top 250 GlobalEnergy Company Rankings 2015

3. The International Federation of Training and Development Organizations (IFTDO)Global HRD award 2016 on the topic "Customized Soft Skill Training forWorkpersons"

4. The "Frost & Sullivan’s Green Manufacturing Excellence Award 2015 -Certificate of Merit - Believers Category"

5. The Oil Industry Safety Award for "Best Near Miss Incidents ReportingProduction Operation-Onshore/Offshore" for the year 2013-14

6. The 2nd Pt. Madan Mohan Malaviya Silver Award for Best CSR Practices in Education2015 by CSR Times.

7. Shri Gnana Kumaraswamy Batta Senior Geophysicist with Oil India Limited won thePetrofed Innovator of the year (Special Commendation in the Individual category) at thePETROFED Awards 2013-14

8. 3rd Prize under Best Enterprise Award in Public Sector at the 26th NationalConvention of the Forum of Women in Public Sector (WIPS)

9. The ‘Best Company in CSR & Sustainability’ Award at the INDIA TODAYPSUs Awards 2015

10.The following awards instituted by "World CSR

Congress" at the Sustainability & Leadership Summit & Awards ceremony :

i) 50 Most Sustainable Companies of India Award

ii) Best Performing Navratna PSU Award

iii) Best CSR Practices Award

iv) Sustainable Community Leadership Award

In addition two distinguished lady officers namely Ms. Reba Devi Group GeneralManager- Geology & Reservoir and Ms. Debajani Bose Head- Chemical were conferredwith the prestigious "Women at Work Leadership Award."

11. The 5th Annual Greentech CSR Award 2015 in Gold category in Petroleum Explorationsector

12. The 15th Annual Greentech Environment Award 2014 in Gold category in PetroleumExploration sector

13. The 16th Annual Greentech Environment Award 2015 in Gold category in PetroleumExploration Sector

14. The Golden Peacock National Training Award 2015

15. The 5th Annual Greentech HR Award 2015 on Training Excellence

16. The 3rd Global Training & Development Leadership Award for best developmentprogramme in public sector for workers in the category of Best Employer 2015-16 by WorldHRD Congress.

17. The 7th best employer of the year at 10th Employer Branding award and an award formanaging health at work both by Employer Branding Institute India.

18. The "Dainik Bhaskar- India Pride Award 2015-16 for Excellence in Oil &Gas" in the Central Public Sector Undertaking category by the Dainik Bhaskarnewspaper group

Apart from the above Oil India Limited was bestowed with several other laurels forachievements in different spheres of the Company:

1. OIL Football team became the Champions in the 7th Bodousa Cup Football Tournamentheld at Tinsukia

2. OIL A Team won the runners-up trophy in Merchant Cup Golf Tournament (Division 1)held at Royal Calcutta Golf Course Kolkata

3. Calcutta Branch was awarded the second Rajbhasha Shield for implementation ofOfficial Language at Calcutta Branch office. Also the Town Official Language Committeefor PSUs of Kolkata gave Certificate of appreciation and memento to Calcutta Branch andDr. V M Bareja Senior Manager(Official Language) for his contribution towardsimplementation of Official Language at Calcutta Branch office.

24. CHANGES IN THE BOARD OF DIRECTORS

(i) Pursuant to Letter no. C-31014/3/2015-CA/FTS:38699 dated 30th June 2015 issued byMinistry of Petroleum & Natural Gas (MOP&NG) Shri U.P. Singh AdditionalSecretary (Exploration) MOP&NG assumed the additional charge of Chairman &Managing Director Oil India Limited w.e.f 1st July 2015 (FN) vice Shri S.K.Srivastavawho ceased to be Chairman and Managing Director of Oil India Limited pursuant to hissuperannuation from the services of the Company on 30.06.2015 (after closing of workinghours).

(ii) Pursuant to Letter No. C-34011/19/2005-CA dated 3rd September 2012 issued byMOP&NG

a) Shri Anup Mukerji Ex-Chief Secretary Government of Bihar

b) Shri Suresh Chand Gupta Practising Chartered Accountant

c) Prof. Bhaskar Ramamurthi Director IIT Madras

d) Prof. Shekhar Chaudhuri Director IIM Kolkata

e) Prof. Gautam Barua Mentor Director IIIT Guwahati

have retired as Independent Directors (Non-Official Part-Time Directors) on the Boardof Oil India Limited w.e.f. 03.09.2015.

(iii) Pursuant to Letter No. C-31033/1/2012-CA/FTS:18688 dated. 02.01.2016 issued byMOP&NG Shri Sunjay Sudhir Joint Secretary (IC) MOP&NG was appointed asGovernment Nominee Director on the Board of Oil India Limited in place of Shri Nalin KumarSrivastava Director (E-II) MoP&NG.

(iv). Pursuant to Letter No. C-31014/3/2015-CA/FTS:38699 dated 31st May 2016 issued byMOP&NG Shri A.P Sawhney Additional Secretary MOP&NG was entrusted additionalcharge of the post of Chairman & Managing Director OIL. Shri U.P. Singh AdditionalSecretary (E) MOP&NG ceased to be the Chairman and Managing Director of Oil IndiaLimited after close of working hours on 31st May 2016.

(v) Pursuant to Letter No. C-31014/4/2015-CA(Part-I)/FTS:38957 dated 13th July 2016issued by MOP&NG Shri Utpal Bora has been inducted into the Board as Chairman andManaging Director of Oil India Limited w.e.f 18th July 2016 (FN) vice Shri A.P SawhneyAdditional Secretary MOP&NG.

25. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section134 (5) of the Companies Act 2013 withrespect to Directors’ Responsibility Statement Directors of the Company confirmthat:

a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

b) the directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss of the company for that period;

c) the directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

d) the directors had prepared the annual accounts on a going concern basis;

e) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively; and

f) the directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

26. ACKNOWLEDGEMENT

With the initiatives emanating from the vision of making the Company as fastest growingenergy company with highest profitability and with our combined zeal commitmentexperience and expertise your Directors

(v) Pursuant to Letter No. C-31014/4/2015-CA(Part- l)/FTS:38957 dated 13th July 2016issued by MOP&NG Shri Utpal Bora has been inducted into the Board as Chairman andManaging Director of Oil India Limited w.e.f 18th July 2016 (FN) vice Shri A.P SawhneyAdditional Secretary MOP&NG.

25. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134 (5) of the Companies Act 2013 withrespect to Directors’ Responsibility Statement Directors of the Company confirmthat:

a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

b) the directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss of the company for that period;

c) the directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

d) the directors had prepared the annual accounts on a going concern basis;

e) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively; and

f) the directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

26. ACKNOWLEDGEMENT

With the initiatives emanating from the vision of making the Company as fastest growingenergy company with highest profitability and with our combined zeal commitmentexperience and expertise your Directors look forward to a year of fruitful operations.Your Directors acknowledge the guidance and support of the Ministry of Petroleum &Natural Gas all other Ministries and Agencies in Central and State Governments. YourDirectors express their gratitude and thanks to the Shareholders Auditors CustomersSuppliers and other business partners/associates for their continued co-operation andpatronage. Your Directors wish to place on record their deep sense of appreciation for thedevoted services of all Oil Indians for its success.

For and on behalf of the Board of Directors.

Sd/- (Utpal Bora) Chairman & Managing Director

Dated: 03.08.2016

Place: Noida