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Oil India Ltd.

BSE: 533106 Sector: Oil & Gas
NSE: OIL ISIN Code: INE274J01014
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OPEN 225.00
PREVIOUS CLOSE 222.70
VOLUME 400197
52-Week high 267.70
52-Week low 130.00
P/E 8.30
Mkt Cap.(Rs cr) 26,210
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 225.00
CLOSE 222.70
VOLUME 400197
52-Week high 267.70
52-Week low 130.00
P/E 8.30
Mkt Cap.(Rs cr) 26,210
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Oil India Ltd. (OIL) - Auditors Report

Company auditors report

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying Standalone Financial Statements of OIL INDIA LIMITED("the Company") which comprise the Balance Sheet as at 31st March2021 the Statement of Profit and Loss including Other Comprehensive Income the Statementof Cash Flow and the Statement of Changes in Equity for the year then ended and a Summaryof the Significant Accounting Policies and Additional Notes (herein after referred to as"Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information reguiredby the Companies Act 2013 ("The Act") in the manner so reguired and give a trueand fair view in conformity with the Indian Accounting Standards specified under section133 of the Act read with the Companies (Indian Accounting Standard) Rules2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March2021 and its profit includingother comprehensive income its cash hows and changesin eguityfortheyearended onthatdate.

BASIS FOR OPINION

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing ("the SAs")specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (the "ICAI") together with theethical reguirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made there under and we have fulfilled ourother ethical

responsibilities in accordance with these reguirements and the ICAI's Code of Ethics.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

EMPHASIS OF MATTER

We draw attention to the following matters in the notes totheStandalone FinancialStatements.

a) Note No. 43.14.1 regarding challenging the levy of GST on royalty paid by thecompany on Crude Oil and Natural Gas under Oil Fields (Regulation and Development) Act1948 and considering it as contingent liability although regularly deposited underprotestandGST returnsfiled.

b) Note No. 43.14.2 regarding consideration of GST liability on royalty paid underprotest as allowable expense for computation of taxable income and tax thereon under theIncome Tax Act 1961.

c) Note No. 43.15.3 regarding the of loss/damage to assets and Oil/Gas reserves onaccount of fire in Baghjan # 5 considered as exceptional item in the financial statement.

d) Note 43.4.1.1 regarding acguisition of stake in Numaligarh Refinery Limited alongwith transfer of management control to the company.

Our opinion on the standalone financial statement is not modified in respect of thesematters.

KEY AUDIT MATTERS

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

SI. Key Audit Matter No. Response of Auditors in dealing with the matters
1 a) DisclosuresforCOVID19 We have obtained an understanding of the reguirement as per ICAI guidelines and SEBI circular relating to COVID 19 and the following audit procedures were adopted.
The Company has assessed the potential impact of COVID - 19 and no impact is expected on its ability to continue as a going concern and meeting its obligations since the majority of the Company's existing arrangements in production and sales are not affected. • Discussed with management to understand the business and assessed if there was any impact on production sales capital projectsand inventory management.
Refer Note 43.15.2 to the Standalone Financial Statements. • Assessed the impact on property plantandeguipmentsand effect on ongoing contractsand arrangements.
b) Modified Audit Procedure because of C0VID19. Based on the audit procedures involved we found the assessment made by the management in relation to the impact as reasonable.
Because of extended period of lockdown in the country due to the Pandemic and conseguent travel restrictions audit in the operating locations of the company could not be undertaken. Accordingly the audit procedure reguired modification to facilitate remotelocationaudit. To complete the audit from a remote location within a prescribed time schedule a road map was prepared and discussed with the company.
The company provided us access to their SAP system for verification of the books of accounts and various documents backed by tele conference video conferences email and other communication system to complete the audit.
We also verified scanned documents produced to us from time to time as audit evidences.
Our observations were addressed through regular video conferences and scanned documents.
We have also relied upon and performed our audit procedures in accordance with guidance issued by the Institute of Chartered Accountants of India for the Audit and Accounting Procedure under COVID19 situation.
2 Valuation of investments in certain Equity/ Joint Controlled Interest of Unlisted Companies. Our procedure in relation to management's valuation of the investmentsinclude:
The investment as on 31st March 2021 has been valued by an expert consultant. With reference to the valuation management had estimated the fair value of the investment. The valuation involved significant management judgement and accordingly the valuation of the investment was considered one of the key audit matters. • Evaluating the independent professional valuer competence capabilitiesand objectivity
The fair value was determined based on the discounted cash how model. The valuation involved significant judgement including crude oil/ natural gas reserves future business growth and future product selling price and production costs to the investee. • Assessing the valuation methodology used by the independent professional valuer to estimate the fair value of theinvestments.
Refer Notes 6 to the Standalone Financial Statements • Checking on a sample basis the accuracy and reasonableness of the input data provided by the management to the independent valuer.
• Assessing the reasonableness of cash how projections and audit procedures on management's assumptions such as crude oil reserves future business plan/ growth future product selling prices and production costs discount rates by comparing the assumptions to historical results and published market and industry data.
• Discussed with management of the investment to understand the business and assessed if there was any inconsistency in the assumptions used in the cash how projections.
Based on the audit procedures involved we found the assumptions made by the management in relation to the valuation were reasonable.
3 Impairment of Loans to subsidiaries Associates and Joint Venture. Our procedure in relation to management's evaluation of the loansinclude:
The company has evaluated the recoverability of loans to its Subsidiaries Associates and Joint Ventures based on the valuation by an expert consultant and with reference to the valuation management has estimated the fair value of the loans at Rs.135.42 crores at year end. • Evaluating the independent professional valuer competence capabilitiesand objectivity
The impairment study involved significant management judgement. Accordingly the impairment of loan was considered one of the key audit matters. Refer Notes 7 to the Standalone Financial Statements • Assessing the valuation methodology used by the independent professional valuer to estimate the fair value of the loans.
• Checking on a sample basis the accuracy and reasonableness of the input data provided by the management to the independent valuer.
• Assessing the reasonableness of cash how projections and audit procedures on management's assumptions such as
crude oil reserves future business plan/ growth future product selling prices and production costs discount rates by comparing the assumptions to historical results and published market and industry data.
• Discussed with management to understand the business and assessed if there was any inconsistency in the assumptions used in the cash flow projections.
Based on the audit procedures involved we found the assumptions made by the management in relation to the valuation were reasonable.
4 Evaluation of uncertain tax positions Our audit procedures include:
The Company has material uncertain tax positions including matters under dispute which involves significant judgement to determine the possible outcome of these disputes. • Evaluated the design and implementation of controls in respect of provision for current tax and the recognition and recoverability of deferred tax assets.
• Considered management's assessment of the validity and adeguacy of provisions for uncertain tax positions evaluating the basis of assessments and reviewing relevant correspondence and legal advice where available including any information regarding similar cases with the relevant taxauthority.
• Assessed the appropriateness of management's assumptions and estimates including the likelihood of generating sufficient future taxable income to support deferred taxassets.
• Assessed and reviewed the presentation and disclosures in the standalone financial statements
Based on the procedure performed above we obtained sufficient audit evidence to corroborate management's estimates regarding current and deferred tax balances and provision for uncertain tax positions.
5 Contingent Liabilities against litigation and claims We have obtained an understanding of the company's internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures:
There are a number of litigations pending before various forums against the company and the management's judgement is reguired for estimating the amount to be disclosed as contingent liability. • Understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases.
We identified this as a key audit matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and accounting estimates involving high estimation uncertainty. • Discussed with the management any material developments and latest status of legal matters.
Refer Note 43.16.1A to the Standalone Financial Statements • Read various correspondences and related documents pertaining to litigation cases and relevant external legal opinions obtained by the management and performed substantive procedures on calculation supporting the disclosure of contingent liabilities.
• Examined management's judgements and assessments as to whether provisions are reguired.
• Considered the management assessments on those matters that are not disclosed as the probability of material outflow is considered to be remote.
• Reviewed the adeguacy and completeness of disclosures. Based on the above procedures performed the estimation and disclosures of contingent liabilities are considered to be adeguateand reasonable.

Information Other than the Standalone Financial Statementsand Auditors' Report thereon:

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Directors'Report including Annexures to Directors' Report Management Discussion and Analysis Reportand Report on Corporate Governance but does not include the Standalone FinancialStatements and our Auditors'Report thereon.

Our opinion on the Standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with ourauditof the Standalone Financial Statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the Standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

If based on the work we have performed on the other information that we obtained priorto the date of Auditors' report we conclude that there is a material misstatement of thisother information we are reguired to report that fact. We have nothing to report in thisregard.

When we read the other information which we will obtain after the date of Auditors'Report and if we conclude that there is material misstatement there in we are reguired tocommunicate the matter to those charged with governance.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingOther Comprehensive Income cash hows and changes in eguity of the Company in accordancewith the

accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section133 of the Act read with Rule7 of the Companies(Accounts) Rules2015. This responsibility also includes maintenance of adeguateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgements andestimates that are reasonable and prudent; and design implementation and maintenance ofadeguate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Financial Statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsibleforassessing the company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the company or to cease operations or has norealistic alternatives but to doso.

The Board of Directors is also responsiblefor overseeing the company'sfinancialreporting process.

Auditors' Responsibility for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due

tofraud orerror design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

• Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadeguate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are reguired to draw attention in our auditors' report to the related disclosures inthe Standalone Financial Statements or if such disclosuresareinadeguate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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

We also provide those charged with governance with a statement that we have compliedwith relevant ethical

requirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematters or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefitsof such communication.

Other Matters

1. The Standalone Financial Statements and other Financial information includeCompany's proportionate share in unaudited joint ventures in respect of assets Rs.1653.75crores liabilities Rs. 1436.64 crores expenses Rs.143.88 crore incomes Rs.152.04 croreand the elements making up the Statement of cash how and related disclosures as at 31stMarch 2021 which is based on statements from the operator and certified by themanagement.

2. We have also placed reliance on technical/ commercial evaluation by the managementin respect of categorization of wells as exploratory development producing and dry wellallocation of cost incurred on them impairment liability for decommissioning costliability under New Exploration Licensing Policy (NELP) and liability for underperformance against Minimum Work Programme.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. With respect to the other matters to be included in the Auditors' Report in terms ofthe directions and additional directions of the Comptroller and Auditor- General of India(C&AG) under Section 143 (5) of the Act and on the basis of our examination of thebooks and records of the Company carried out in accordance with the generally acceptedauditing practices in India and according to the information and explanations given to uswe give in the Annexure

'A and Annexure 'B' statement on the matters specified in the Directions andAdditional-directions of C&AG respectively.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section 11 of section 143 of theAct and on the basis of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and according tothe information and explanations given to us we give in the Annexure 'C' a statement onthe matters specified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the Statement of Cash Flow and the Statement of changes in equity dealt with bythis Report are in agreement with the books of account;

(d) In ouropinion theaforesaid Standalone Financial Statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with Rule7ofthe Companies (Accounts) Rules2015 as amended;

(e) In terms of notification no.G.S.R.463(E) dated 05th June 2015 issued by theMinistry of Corporate Affairs section 164(2) of the Act regarding the disqualification ofdirectors is not applicable to the company since it is a Government Company;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls as requiredunderSection143(3Xi)of the Act refer to our separate report in Annexure D.

(g) In terms of notification no.G.S.R.463(E) dated 5th June 2015 issued bythe Ministry of Corporate

Affairs section 197 of the Act regarding remuneration to directors is not applicableto the company since it is a Government Company;

(h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rulell of the Companies (Audit and Auditors) Rules2014 as amended in ouropinion and to the best of our information and according to the explanations giventous:

i. The Company has disclosed the impact of pending litigations on its financialposition in

its Standalone Financial Statements -Refer Note 43.16.1 to the Standalone FinancialStatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts reguired to be transferred tothe InvestorEducationand Protection Fund bythe Company;

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

Statement on the matters specified in the Directions of C&AG as referred inParagraph 1 of Report on Other Legal and Regulatory Reguirements paragraph of our reportof even date to the members of OIL INDIA LIMITED on the Standalone Financial Statementsfor the year ended 31st March 2021

SI. No. Direction Reply
1 Whether the company has system in place to process all the accounting transaction through IT systemRs. If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may bestated. During the year under review the company has maintained all the accounting transactions through SAP system.
2 Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/ interest etc. made by a lender to the company due to the company's inability to repay the loanRs. If yes the financial impact may be stated. Whether such cases are properly accounted forRs. No such restructuring of any existing loans or cases of waiver / write off of debts / loans / interest etc. madebythelender.
3 Whether funds (grants/subsidy etc.) received/ receivable for specific schemes from Central/State Governments and its agencies were properly accounted for/utilized as per its term and conditionsRs. List the cases of deviation. During the year under review funds ( grants/subsidy) received / receivable for specific schemes from Central / State agencies were properly accounted for/utilised as per its terms and conditions.

Statement on the matters specified in the Additional Directions of C&AG as referredin Paragraph 1 of Report on Other Legal and Regulatory Reguirements paragraph of ourreport of even date to the members of OIL INDIA LIMITED on the Standalone FinancialStatements of the Company for the year ended 31st March 2021

SI. No. Direction Reply
1 The accounting treatment of income/expenditure and receivables/liabilities arising from agreements/ contracts including JVs for exploration of Oil/Gas may be examined to ensure that they are strictly in conformity with the terms and conditions of the respective Production Sharing Contracts(orsimilar arrangements including Joint Ventures). The accounting treatment of income/expenditure and receivables /liabilities arising from agreements /contracts including JVs for exploration of Oil/Gas have been examined and found that they are strictly in conformity with the terms and conditions of the respective Production Sharing Contract (or similar arrangements including Joint Ventures) except in respect of non-accounting of interest on cash call fordelay/non-payment of thesame.

ANNEXURE 'C' TO THE AUDITORS' REPORT

The Annexure C referred to in paragraph 2 of Report on Other Legal and RegulatoryReguirements paragraph of our report of even date to the members of OIL INDIA LIMITED onthe Standalone Financial Statements of the Company for the year ended 31stMarch 2021.

i. (a) The Company has generally maintained proper

records showing full particulars including guantitative details and situation of fixedassets;

(b) The fixed assets except for Oil & Gas Asset and Leased Assets have beenphysically verified by the Management in a phased manner designed to cover all such itemsover a period of three years. No material discrepancies were noticed on such verification;

(c) As informed to us the title deeds of the immovable properties are held in physicalform access of which is not available in SAP system. Due to remote location we areunable to comment whether the title deeds of all the immovable properties are held in thename of the company. The company has however informed us that 325.32 lakh sguare metresof such property title deeds of which are not held in the name of the company.

ii. According to the information and explanations given to us the Inventories(excluding stock in transit and/or under inspection with suppliers/contractors) have beenphysicallyverified bythe management on a regular basis which in our opinion is reasonablehaving regard to the size of the company and nature of its business. Such verification didnot reveal any material discrepancies.

iii. The Company has granted unsecured loans to parties covered in the registermaintained under section 189 of the Companies Act 2013 ("the Act"). However inrespect of aforesaid loans:

(a) The terms and conditions under which such loans were granted are not prejudicial tothe Company's interest;

(b) The schedule of repayment of principal and interest has been stipulated and therepayments

or receipts are as per stipulation except for default in repayment of loan amounting toRs. 97.76 crore(US $ 13.20 Million)and interest due thereon amounting to Rs.153.84 crore(US $ 20.77 Million) upto 31st March 2021 by Oil India International BV; and;

(c) There is no amount which is overdue for more than ninety days except for the amountas stated in(iiiXb).

iv. In respect of loans investments guarantees and security given or providedprovisions of Section 185 and 186 of the Act wherever applicable have been complied with;

v. The Company has not accepted deposits from the public. Hence the direction issuedby the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and the Rules framed there under are not applicable to the Company.As explained to us no order has been passed by the Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any court or any other tribunal in this regard;

vi. We have broadly reviewed the cost records maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of the cost records undersub-section (1) of Section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records maintained asaforesaid.

vii. (a) The Company is regular in depositing undisputed

statutory dues including provident fund employees' state insurance income tax salestax wealth tax service tax duty of customs duty of excise value added tax cessGoods and Service Tax and any other statutory dues as applicable to it with theappropriate authorities. According to the information and explanations given to us therewere no outstanding undisputed statutory dues as on 31st of March 2021 for aperiod of more than six months from the date they became payable.

(b) Details of disputed dues in respect of income tax duty of excise or sales tax orservice tax or duty of customs or value added tax or cess Goods and Service Tax whichhave not been deposited on account of any dispute are given below:

Name ofthe Statute Nature of Dues Period to which the amount relates

Amount (inRs. Crores)

Forum where Dispute is Pending
Gross Amount involved Amount paid under protest Amount unpaid
Finance Act 1994 ServiceTax July 2008 to March 2009 0.30 0.01 0.29 CESTAT Kolkata
April 2009 to March 2010 0.40 0.02 0.38
April 2014 to March 2015 7.08 7.08
Upto 2016-17 260.92 260.92 CESTAT Hyderabad
April 2016 to June'2017 255.69 255.69 Gauhati High Court
April 2014 to June'2017 36.88 8.00 28.88 CESTAT Kolkata
April 2016 to June'2017 3.98 1.44 2.54 Rajasthan High Court Jodhpur Bench
CGSTAct2017 & Assam GSTAct2017 GST on Royalty July 2017 to March'2021 1081.58 1012.39 69.19 Gauhati High Court
CGSTAct 2017 & Arunachal Pradesh GST Act2017 GST on Royalty July 2017 to March 2021 5.11 4.77 0.34 Gauhati High Court
CGSTAct 2017 & Rajasthan GSTAct2017 GST on Royalty July 2017 to March'2021 5.67 5.55 0.12 Rajasthan High Court Jodhpur Bench

Note: Dues include interest and penalty wherever applicable

viii. The Company has not defaulted in repayment of loans or borrowings to anyfinancial institution bank Government or dues to debenture holders;

ix. In our opinion and according to information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments) during the year. The term loans were applied for the

purposes for which those were raised;

x. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year;

xi. In terms of notification no.G.S.R.463(E) dated 05th June 2015 issued by theMinistry of Corporate Affairs section 197 of the Act regarding remuneration to directorsis not applicable to the company since it is a Government Company;

xii. As the Company is not a Nidhi company Nidhi Rules 2014 are not applicable to itand accordingly the reporting under clause 3(xii) of the Order is not applicable;

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the Standalone Financial Statements as reguired by theapplicable Indian Accounting Standard;

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year

under review. Accordingly the reporting under clause 3(xiv) of the Order is notapplicable;

xv. Based on our examination of books and accounts and as per information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him. Therefore reporting under para 3 (xv) of theOrder is not applicable;

xvi. As per information and explanations given to us the Company is not reguired to beregistered under Section 45-IA of the Reserve Bank of India Act 1934. Accordinglyreporting underpara3(xvi)of the Order isnotapplicable.

ANNEXURE D TO THE INDEPENDENT AUDITORS' REPORT

The Annexure D referred to in paragraph 3(f) of Report on Other Legal and RegulatoryReguirements paragraph of our report of even date to the members of OIL INDIA LIMITED onthe Standalone Financial Statements for the year ended 31st March 2021.

Report on the Internal Financial Control over Financial Reporting under clause (i) ofsub section 3 of section 143 of the Companies Act 2013 ("The Act")

We have audited the internal financial controls over financial reporting of Oil IndiaLimited ("the Company")as of 31st March 2021 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adeguate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliablefinancial information as reguiredundertheAct.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols Over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note reguire that we

comply with ethical reguirements and plan and perform the audit to obtain reasonableassurance about whether adeguate internal financial controls Over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Ouraudit involves performing proceduresto obtain audit evidence about the adeguacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for ouraudit opinion on the company's internal financial controls systemoverfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controloverfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acguisition use ordisposition of the company's assets that could have a material effect on the standaloneFinancial Statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadeguate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adeguate internalfinancial controls system Over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (6) (b) OFTHE COMPANIES ACT 2013 ON THE STANDALONE FINANCIAL STATEMENTS OF OIL INDIA LIMITED

FOR THE YEAR ENDED 31 MARCH 2021

The preparation of financial statements of Oil India Limited for the year ended 31March 2021 in accordance with the financial reporting framework prescribed under theCompanies Act 2013 (Act) is the responsibility of the management of the company. Thestatutory auditors appointed by the Comptroller and Auditor General of India under section139(5) of the Act are responsible for expressing opinion on the financial statements undersection 143 of the Act based on independent audit in accordance with standards on auditingprescribed under section 143(10) of the Act. This is stated to have been done by them videtheir Audit Report dated 21 June 2021.

I on the behalf of the Comptroller and Auditor General of India have conducted asupplementary audit of the financial statements of Oil India Limited for the year ended 31March 2021 under section 143(6)(a)of the Act. This supplementary audit has been carriedout independently without access to the working papers of the statutory auditors and islimited primarily to inquiries of the statutory auditors and company personnel and aselective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come to my knowledgewhich would give rise to any comment upon or supplement to statutory auditors'report undersection 143(6)(b)of the Act.

For and on behalf of the
Comptroller & Auditor General of India
Sd/-
(Mausumi Ray Bhattacharyya)
Place: Kolkata DIRECTOR GENERAL OF AUDIT (COAL)
Dated: 19 August 2021 KOLKATA

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