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Oil India Ltd.

BSE: 533106 Sector: Oil & Gas
NSE: OIL ISIN Code: INE274J01014
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OPEN 223.85
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VOLUME 24275
52-Week high 267.70
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P/E 7.60
Mkt Cap.(Rs cr) 23,987
Buy Price 221.20
Buy Qty 136.00
Sell Price 221.50
Sell Qty 103.00
OPEN 223.85
CLOSE 220.15
VOLUME 24275
52-Week high 267.70
52-Week low 129.45
P/E 7.60
Mkt Cap.(Rs cr) 23,987
Buy Price 221.20
Buy Qty 136.00
Sell Price 221.50
Sell Qty 103.00

Oil India Ltd. (OIL) - Director Report

Company director report

DearMembers

On behalf of the Board of Directors I hereby present the 62nd Annual Reporton the performance of your Company containing Audited Financial Statements together withthe Auditors' Report and the Comments of the Comptroller and Auditor General of India forthe year ended March 312021.

1. SIGNIFICANT HIGHLIGHTS

A. FINANCIAL HIGHLIGHTS

During the year the Company has earned total revenue of Rs. 10561.45 crore as againstRs. 13648.71 crore in the previous year 201920. The Net profit margin of the Company forfinancial year 2020-21 was 16.49%.

The Profit Before Tax(PBT)in the year 2020-21 was Rs. 723.07 crore against PBT of Rs.2120.10 crore in the previous year. The Profit After Tax (PAT) was Rs. 1741.59 crore inthe financial year 2020-21 as against Rs. 2584.06 crore in the previous year. PAT for thefinancial year 2020-21 has reduced by Rs. 842.47 crore (32.60%) as compared to 2019-20primarily due to lower crude oil price realization at US$ 43.98/bbl (Previous year US$60.75/bbl) which was partially offset due to settlement of old income tax litigation casesunder VivadSeVishwas'scheme 2020 which resulted in a reversal of income tax liability ofRs. 1158.54 crore.

The average INR/USD exchange rate was Rs. 74.23 in the year 2020-21 as against Rs.70.90 in the previous year. The key financial figures for the Financial Year(FY)2020-21are summarized below:

Particulars Financial Year 2020-21 Financial Year 2019-20
Income from Operations 8618.38 12128.52
Other Income 1943.07 1520.19
EBDITA 3208.49 4110.73
Finance Cost 498.71 498.80
Depreciation Depletion and Amortisation 1537.68 1491.83
Exceptional items -449.03 -
Profit Before Tax 723.07 2120.10
Profit After Tax 1741.59 2584.06
Appropriations
Interim Dividend 379.55 975.96
Tax on Interim Dividend - 200.56
Final Dividend of previous year 173.51 189.77
Tax on Final Dividend of previous year - 39.00
Re-measurement of the net Defined Benefit Plans transferred from Other Comprehensive Income -17.04 860.45
Transferto Debenture Redemption Reserve - -872.13
Transfer on disposal of investment measured by Fair Value through the statement of Other Comprehensive Income (FVT0CI) - -1.32

B. OPERATIONAL HIGHLIGHTS

(i) Crude Oil

During the year 2020-21 crude oil production was 2.964 MMT (inclusive of Company'sshare of 0.012 MMT from Kharsang JV and 0.015 MMT from Dirok JV) as against the productionin the previous year (3.133 MMT). The crude oil sale was 2.872 MMT as compared to 3.055MMT in the previous year.

The price realization in respect of crude oil was USD 43.98/bbl in the year 2020-21 asagainst USD 60.75/bbl in the year 2019-20 registering reduction of USD 16.77/bbl. Thereduction on price realisation coupled with lower rate of crude oil has resulted in fallin revenue from crude oil by 29.10% during the year.

Cyclic Steam Stimulation (CSS)was successfully implemented for the first time in Indiaby the Company in 2019 and had been implemented in wells at Baghewala field. Continuousproduction is underway from the Baghewala structure.

(ii) Natural Gas

During the year 2020-21 natural gas production was 2642 MMSCM (inclusive of 162 MMSCMas Company's share from Dirok JV) as against production of 2801 MMSCM in the previousyear. The production from Assam & Arunachal Pradesh was 2292 MMSCM and that ofRajasthan was 188 MMSCM. The sale of natural gas was 2270 MMSCM against 2403 MMSCM in thepreviousyear.

The average natural gas price realization was USD 2.09 / MMBTU in the year 2020-21 asagainst USD 3.46 / MMBTU in the year 2019-20 resulting in decrease of natural gas price byUSD 1.37/MMBTU. As a result of decreased price realization and lower sales quantityrevenue from natural gas decreased by 38.43% during the year 2020-21.

(iii) Liquefied Petroleum Gas(LPG)

During the year 2020-21 LPG production was 33910 metric tons against 28990 metrictons in the Year 2019-20. The sale of LPG was 34076.93 metric tons against 28962.68metric tons in the previousfinancialyear.

LPG revenue was Rs. 116.38 Crore in the year 2020-21 as against Rs. 112.22 Crore inyear 2019-20 leading to the increase of Rs. 4.16 Crore in revenue from LPG.

Condensate revenue was Rs. 37.07 Crore in the year 2020-21 as against Rs. 25.56 Crorein the year 2019-20

(iv) Pipeline Operations

During the year 2020-21 crude oil pipeline transported 5.97 MMT of crude oil asagainst 5.72 MMT in the previous year. The

Naharkatia - Bongaigaon sector transported 2.87 MMT of crude oil for the Company 0.94MMT of crude oil for ONGC & 0.0045 MMT of crude oil from Dirok field (AAP/ON-94/1).The Barauni - Bongaigaon sector transported 2.16 MMT of imported crude oil for BongaigaonRefinery. The Company also transported 1.699 MMT of petroleum products throughNumaligarh-Siliguri Product Pipeline with pipeline utilization of 98.7%.

The total revenue earned from transportation business was Rs. 361.45 crore in thefinancial year 2020- 21 against Rs. 327.50 crore in the year 2019-20. The Company alsoearned revenue of Rs. 13.48 crore in 2020-21 from its telecom business as against Rs.12.71 crore in previousyear.

The total installed capacity of the Company in respect of renewable energy stands at188.10 MW (excluding projects for captive utilization) comprising of 174.10 MW of windenergy projects and 14 MW of solar energy projects. In addition solar plants of 0.799 MWare being used for captive utilization of electrical energy.

Your Company generated revenue of Rs. 123.08 crore from renewable energy projects (windas well as solar plants) during 2020-21. The electricity generated from wind and solarplants during 2020-21 is summarized below:

(v) Renewable Energy

SI No. Plant Name Location Unit Generated in 2020-21 (Mn. Kilo Watt hr)
01 5MWSolarPowerPlant Jaisalmer Rajasthan 8.92
02 9 MWSolarPowerPlant Jaisalmer Rajasthan 16.04
03 13.6 MW Wind Power Plant Ludurva Rajasthan 15.71
04 54 MWWindPowerPlant Dagri Rajasthan 50.26
05 38 MWWindPowerPlant Chandgarh Madhaya Pradesh 62.85
06 16MWWindPowerPlant Patan Gujarat 25.16
07 27.3 MW Wind Power Plant Kotiya Gujarat 66.15
08 25.2 MW Wind Power Plant Unchawas .Madhaya Pradesh 51.58

C. EXPLORATION HIGHLIGHTS

i. Exploration Activities and Discoveries

Your Company drilled 12 (twelve) exploratory wells and 24 (twenty four) developmentwells during 2020-21. During the year the Company has made 1 (one) gas discovery in Assamand has achieved Reserve Replacement Ratio (RRR) of 1.16 under 2P category.

The Company has won the coveted Federation of Indian Petroleum Industry (FIPI) Award2020 in the category "Oil & Gas Exploration - Company of the Yeah'.

In orderto intensify exploration the Company has inducted an innovative technology ofAirborne Gravity Gradiometry and Gravity-Magnetic (AGG & GM) survey over terrains withdifficult logistics in 0ALP and nominated blocks in the North-East. Adoption of thistechnology will enable us to reduce exploration cycle time and prioritize areas forexploration focus in geologically complex and logistically inaccessible areas.

During the year 2020-21 the Company had carried out 13103.28 LKM of 2D & 2104.08sg km of 3D seismic survey in its nominated acreages and 0ALP Blocks. The Company is thefirst operator

to commence exploration activities in 0ALP blocks in the country by starting 2D &3D seismic acquisition in 0ALP blocks in Rajasthan. The Company has also commenced theseismic data acquisition campaign within a month from the award of PEL in the 0ALP block(AA-0NHP-2019/01) awarded under 0ALP-V round. The exploration block is located inBiswanath district in Assam and is logistically difficult due to riverine terrain and Goodprone areas. The Company has deployed its in-house crew using State-of-the-art cable-lessseismic data acquisition system for the same. So far the Company has completed committedseismic acquisition in 10 OALP blocks and seismic acquisition is under progress in 8 OALPblocks.

ii. Acreage

Your Company's In-Country operations are spread over the areas in the states of AssamArunachal Pradesh Mizoram Tripura Nagaland Odisha Andhra Pradesh and Rajasthan andoffshore areas in Andaman Kerala-Konkan and KG shallow waters.

The Company is operating in 03 (three) PEL and 25 (twenty five) PML areas allottedunder the nomination regime in the States of Assam Arunachal Pradesh and Rajasthan. TheCompany also holds Participating Interest (PI) in 06 (six) NELP Blocks with operatorshipin 04 (four) Blocks and as Non-operator in the remaining 02 (two) Blocks as on 31-03-2021.The Company has furtherexpanded its acreage base through participation under OALP bidrounds. OIL has been awarded 4 blocks under OALP Round - V. Earlier OIL was awarded 21blocks under OALP bid rounds- I to III and 2 blocks under Discovered Small Fieldround-ll. The strategy of your company is to consolidate its position as the leadingOperator in the North-East and carry out exploration in Category II & III sedimentarybasins of India in line with the Government of India's vision to intensify exploration inIndian sedimentary basins and increase domestic oil and gas production.

Out of the 4 blocks awarded to the Company under 0ALP-V round 2 blocks are located inAssam & Arunachal Pradesh and other 2 blocks are located in Rajasthan. The Company hasalso been awarded 2 (two) blocks as operator one each in Tripura and Krishna-GodavariOffshore areas under DSF-II Bid round. The total domestic operating acreages of thecompany cover anareaof57982.3sq km.

The Company also holds 40% PI in the joint venture Pre-NELP Block Kharsang and 44.086%PI in block AAP-ON-94/1.

The Company is also the operator of the onshore Block Shakthi- II in Gabon covering anarea of 3761.25 sq. km with 50% PI.

Oil and Gas Reserves

a. Domestic

Your Company has strong oil and gas reserves base of domestic assets including JVs. Theparticulars of oil and gas reserves as on 31.03.2021 are furnished below:

Reserves IP 2P 3P
Oil + Condensate Reserves (MMT) 29.6611 73.6264 96.4460
Balance Recoverable Gas(BCM)* 86.3353 134.4013 172.1591
0+0EG(MMT0E) 105.5532 190.8397 245.7515

*Based on projected volume of gas under various sales contracts IP 2P and 3P GasReserves are 20.7660 57.1120 and 72.7090 BCM respectively.

b. Overseas

As on 31.03.2021 oil & gas reserves position of 06 (six) overseas assets(Company's Proportionate Share) namely Niobrara Shale Oil (USA) License-61 (Russia)Vankorneft (Russia) TaasYuryakh (Russia) Carabobo (Venezuela) &Golfinho-Atum(Mozambique) is as furnished below:

Reserves IP 2P 3P
Oil+Condensate (MMT) 13.4076 32.5406 53.1424
Gas Reserves (MMT0E) 13.2647 21.8506 25.9646
0+0EG(MMT0E) 26.6723 54.3912 79.1070

2. CAPITAL STRUCTURE

The Authorized Share Capital of the Company is Rs. 2000 Crore. The Issued Subscribedand Paid Share Capital of the Company is Rs. 1084.41 Crore comprising of 108.44 croreshares of Rs. 10 each. At present the Government of India the Promoter of the Company isholding 56.66% of the total Issued & Paid-up Capital of the Company. The balance43.34% of the Equity capital is held by Public and others including Bodies CorporateMutual Funds Banks FPIs Resident Individuals etc.

3. DIVIDEND

Your Company paid an Interim Dividend @ Rs. 3.50 per share (i.e. 35% on the paid upequity share capital) amounting to Rs. 379.55 crore for the financial year 2020-21. TheBoard of Directors have recommended a Final Dividend of Rs. 1.50/- per share (i.e. 15% onthe paid up equity share capital) amounting to Rs. 162.66 crore for the financial year2020-21 subjectto the approval of the shareholders at the 62nd Annual GeneralMeeting of the Company.

A. CREDIT RATINGS

The Company's financial prudence is reflected in the strong credit rating ascribed byratings agencies as given below:

Category Rating Agency Rating Remark
International
Long Term Moody's Investor Service Baa3 (Negative) At parwith India's Sovereign rating
Long Term Fitch Ratings 'BBB-' (Negative) At parwith India's Sovereign rating
Domestic
Long Term CARE Ratings CARE AAA Highest Rating
Short Term CARE Ratings CARE A1+ Highest Rating

5. DETAILS OF THE LOANS GUARANTEES OR INVESTMENTS/ DEPOSITS

The 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. (Ref. Noteno. 6715 and 42 to the standalone financial statements).

6. RELATED PARTY TRANSACTIONS

All contracts / arrangements / transactions entered by the Company during the year withrelated parties were in ordinary course of business and at arm's length basis. The policyon materiality of related party transactions and dealing with related party transactionsas approved by the Board may be accessed on the Company's website at www.oil-india.comAttention is also invited to Note 43.4 to the financial statementsand FormA0C-2attachedherewith.

7. HUMAN ASSETS

Human Resource Management is an integrated approach focusing on Organization's faith towork with people to manage change and strive for continued excellence. The Companybelieves in building positive employee-employer relationship by nurturing initiativesinnovations and aspirations of the employees. It is ensured that the human resourcepolicies and practices are sensitive to employees' needs.

As on 31st March 2021 Company has 6190 employees consisting of 1669executives and 4521 unionized employees. During the year the Company has taken a numberof measures to improve performance management and performance culture in the Companythrough policy interventions and improvement of systems and processes. Some of theimportant measures includes enhancing transparency and objectivity of HR processesadoption of competency based HRtools H0PE(Help Our People Excel) a Reward andRecognition Scheme for reinforcing high performance behavior improving speed and efficacyof HR service delivery through IT based processes etc.

8. SPORTS

The Company believes that sports 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 participate and excel in sports. TheCompany has actively supported and promoted sports under the umbrella of Petroleum SportsPromotion Board (PSPB) All India Public Sector Sports Promotion Board (AIPSSPB)and otherbodies duly recognized by the Government of India. The Company participated in varioussports events in Football Golf Cricket etc. during the year.

Some of the glimpses of OIL in sports are:

• OIL Football Team was the Winner in the 12th Bodousa Cup Invitational FootballTournament held at Tinsukia.

• Runner-up of 67th Lokopriya Gopinath Bordoloi Football Tournament held atGuwahati.

• OIL'S Golf "A team" was the Winner and "B team" was theRunners-up in the XXXXI PSPB Inter Unit Golf tournament held in GreaterNoida.

9. 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 representation of various priority sections inexecutive and unionized employees categories in the Company as on 31st March2021 is as under:

Category SC ST 0BC Minority PWD Women
Executives 240 156 411 132 32 204
Unionized Employees 401 681 1606 262 83 199
Total 641 837 2017 394 115 403

10. IMPLEMENTATION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013

The Company is committed towards prevention of sexual harassment of women at workplaceand takes prompt action in the event of reporting of any such incidents. The Company hasin place mechanism for prevention of sexual harassment in line

with the reguirements of the Sexual Harassment of Women at the Workplace (PreventionProhibition and Redressal) Act 2013. In this regard Internal Complaints Committees(ICCs) have been constituted at various offices of the Company to deal with sexualharassment complaints if any and to conduct enquiries. Curing the year one complaint wasreceived.

11. CORPORATE GOVERNANCE

In compliance with the SEBI (LODR) Regulations 2015 the Management Oiscussion &Analysis Report Corporate Governance Report and the Business Responsibility Report havebeen furnished as a part of this Annual Report. Your Company also complies with theCorporate Governance Guidelines enunciated by the Oepartment of Public EnterprisesGovernment of India.

12. RTI ACT 2005

Your Company has implemented Right to Information Act 2005 in order to provideinformation to citizens and to maintain accountability and transparency. The Company hasappointed Central Public Information Officer (CPI0) Assistant Public Information Officer(API0) and the First Appellate Authority (FAA) in all its offices to perform the functionsprovided under the Act. In line with the Government directives the RTI Cell issuccessfully processing and disposing RTI applications. The RTI portal hosted on theCompany's website is also being maintained and regularly updated as per the proactivedisclosure underthe RTI Act.

Curing 2020-21 the Company received 278 RTI applications and 264 applications weredisposed off which includes 7 applications carried forward from previous year. TheApplications and Appeals were replied to within the statutory timeframe.

RTI STATUS FOR THE YEAR 2020-21 (AS ON 31.03.2021)

Total Applications Received Applications Disposed Pending Applications First Appeal Appeals disposed off Pending Appeals Second Appeal Before CIC
278 264 14 42 42 -- 07

includes applications/appeals carried over from the previous year.

13. IMPLEMENTATIONOFOFFICIALLANGUAGE(RAJBHASHA)

The Company puts continuous efforts for increased use of Official Language Hindi inofficial work in line with the Official Language Policy/Act/Rules / Orders of the Govt ofIndia. Hindi Workshops were conducted regularly so as to enable officers and employees towork in Hindi conveniently and efficiently. Quarterly Meetings of Official LanguageImplementation Committee were held regularly. The responsibility of the

Chairmanship of Duliajan Town Official Language Implementation Committee (T0LIC) wasalso borne by our Company. Half-yearly meeting of T0LIC were organised as per schedule ofOepartment of Official Language. Executives/ Employees were encouraged to attend HindiTraining Classes and to write more and more words in Hindi through Incentive Schemeformulated by the Company. Total of 126 Nos. of officers and employees took training ofHindi through Hindi class and workshop in Official Language Section. 34 officers andemployees were passed and given incentives as per company rules. To Propagate OfficialLanguage Hindi amongst employees TOLIC members and students various literarycompetitions were held during Hindi Month Celebration. New initiative of Hindi sectioni.e. AajKa Shabd is being prepared and published in OIL webdaily.

The Company has been awarding "OIL Shreemanta Shankardev Fellowship forComperative Studies of Literature (Assamese and Hindi)" to Hindi research fellows ofthe Guwahati University since 2003. This fellowship is given by the Company to a selectedresearch fellow of the university every year for the comparative studies of Literature.The amount for fellowship and other facilities are at par with University Grant Commission(UGC)fellowship.

The Company bagged the First Petroleum Rajbhasa Shield for the year 2019-20 for bestimplementation of Official Language in office jobs.

Annual programme of Official Language Hindi for the year 2020-21 which was issued byDeptt. of Official Language Ministry of Home Affairs Govt of India was circulated toall Spheres/ Deptts. of the Company and regular monitoring and reviewing jobs are beingdone in Quarterly Meeting with Departmental representatives. In-House Hindi Journal"OIL KIR AN" was published regularly. In-House Journal "OIL NEWS" waspublished in Trilingual form i.e. Assamese Hindi and English.

14. PUBLIC PROCUREMENT POLICY FOR MICRO & SMALL ENTERPRISES(MSEs)

The Company adheres to the Public Procurement Policy for MSEs. The budgeted and actualprocurement of goods and services from MSEs during the year 2020-21 are as under:

S.No Particular Status on 31.03.2021
1 Budgeted procurement of goods and services from MSEs 424
Actual procurement
2 a) Total value of goods and services procured from MSEs (including MSEs owned by SC/ST entrepreneurs). 683
3 b) Percentage of procurement of goods and services from MSE

22.32 % on total procurement and 35.44 % excluding the cost of high technology goods & services OEM / Proprietary items & spares.

(including MSEs owned by SC/ ST entrepreneurs) out of total procurement

15. VIGILANCE

The Vigilance Wing is headed by Chief Vigilance Officer (CVO) who functions as a linkbetween the Central Vigilance Commission (CVC) the Central Bureau of Investigation (CBI)the Management and acts as an advisor to Head of the Organisation on Vigilance matters.Vigilance basically functions under three facets: (i) Preventive (ii) Punitive and (iii)Participative.

Preventive Vigilance: This calls for constant review of roles procedures and practicesfor refining and improving the system thereby reducing scope for corruption and alsoleading to better operational results. To strengthen the preventive facet of Vigilanceframework during the year 2020-21 several system improvement measures were recommendedand implemented on the basis of scrutiny of various Contracts & Purchases filesinspections of installations both periodic and surprise intensive examinations of highvalue projects/works done internally as well as by Chief Technical Examiner(CTE) of CVC.Additionally policy matters were also taken up for improvements like amendment in CDARules introduction of Policy on Empanelment of Advocates Hospital manual etc. to name afew. Extensive use of technology through E-procurements E-payments Bill tracking systemetc. has further emerged as effective tools of preventive vigilance. To create awarenessand to sensitize employees about the Company rules and regulations 12 (twelve) in-houseprograms were conducted in various spheres of the Organization. The programs included"Keep in Touch" (KIT) Catch Them Young (CTY)and "VigilanceSensitization".

Punitive Vigilance: Based on complaints received by the Department from various sourcesincluding the CVC and the concerned Ministry investigations were done and taken to theirlogical conclusion. During the year 2020-21 disciplinary proceedings against 09 officialswere initiated.

Participative Vigilance: One major event towards Participative Vigilance is"Vigilance Awareness Week" (VAW). As per CVC's directive VAW-2020 was observedfrom 27th October - 2nd November 2020 across the Company on the theme "VigilantIndia Prosperous India". The week kick started with an Integrity Pledge on 27thOctober 2020 at all spheres. Several activities were conducted both within and outsidethe Company to highlight the objectives of vigilance in an endeavour to demonstrate astrong correlation between Vigilant India and Prosperous India. This year most of theseactivities were organized through online mode due to Covid-19 protocols. Some of theseactivities include training Seminar/ Webinars Workshops Quiz Debate together withseveral competitions in nearby schools and colleges. Online Vendors' Grievance RedressalCamp was also organised at FHQ Duliajan amongst the vendors enabling them redress theirproblems. A special digital issue of Vigilance in-house journal "InTouch" wasalso released on the occasion of VAW-2020.

In addition to above continuous efforts are on to imbibe ethical behavior byencouraging everyone to take the online "Integrity Pledge". The link for online"Integrity Pledge" has been made available in OIL'S website and can be easilyaccessed by the employees theirfamilies vendors/contractors/stakeholders etc.

Vigilance Mechanism/structure in the Company underthe able guidance of Shri Rajiv KumarGupta IFS as Chief Vigilance Officer is quite robust and capable of handling anychallenges.

16. RESEARCH AND DEVELOPMENT

The Research & Development team of the Company provides techno economicallyfeasible and practical solutions to frequently encountered oilfield problems. Over theyears Company has developed expertise and competence in the core oilfield operational andapplied research in the areas of geochemistry oilfield chemicals flow assurance oilfield operations - well stimulation water shut-off oilfield & pipeline corrosionI0R/E0R and petroleum microbiology which has benefitted the Company immensely.

As technological up-gradation state of the art eguipment have been procured andsuccessfully put into service which would help in developing effective research basedsolutions.

In the present global scenario knowledge-based assets or Intellectual Property Rights(IPRs) especially patents have special significance for organizational growth andcompetitiveness. Realizing this the R&D unit of the Company has initiated patentingactivities in the recent years

17. START-UP INITIATIVES

In line with GOI's flagship initiative "Start-up India" was launched in Jan2016 to build a strong ecosystem for nurturing innovation and start-up in the country theCompany had set up Start-up Fund with a corpus of Rs. 50 crore approved by OIL Board inSept 2016 for extending technical and financial support to the Start-ups togrowthroughinnovation. The Companyonboarded Indian Institute of Technology Guwahati (IITG) tofacilitate incubation of OIL'S Start-ups.

During FY 2020-21 the Company supported 03 nos. of Start-ups and all three Start-upshave already demonstrated their archetype in the workshop. Although progress of work ofthe Start-ups was hampered by the Covid pandemic and State- wise restriction on movementall the Start-ups have reached theirfieldtrialphase.

During the year one of the Start-ups promoted by OIL was awarded the Indian Achiever'sAward 2021 for Promising Start

up in Recognition of Outstanding Innovation & Novel contribution to the Indian Oil& Gas industry.

18. SUBSIDIARIES / JOINT VENTURES / ASSOCIATE COMPANIES

A. Material Subsidiary Numaligarh Refinery Limited

Numaligarh Refinery Limited (NRL) was incorporated in 1993 and is a Category -1 MiniRatna PSU having a 3 MMTPA Refinery at Numaligarh in Golaghat district of Assam. As partof its diversification strategy the Company was already holding 26% paid up equity inNRL. The Company further acguired additional 54.16 % stake in NRL on 26th March 2021thereby enhancing its stake to 80.16%. The Company is now the promoter and has managementcontrol of NRL. The stake enhancement in NRL will enable the Company to become anintegrated energy company focussed in the North-East region in India.

B. Subsidiaries

i. Oil India Sweden AB

Oil India Sweden AB is a wholly owned subsidiary of the Company. The said Company wasincorporated on the 20th November 2009 as a private limited Company (AB). Presently theCompany holds 50% shareholding in IndOil Netherlands BV Netherlands and the other 50% isheld by I0CL. IndOil holds the 3.5% Participating Interest (PI) in the Venezuelan Assetnamely PetroCarababoS.A.

ii. Oil India Cyprus Ltd.

Oil India Cyprus Ltd. was incorporated in Cyprus on 21st October 2011 as a privatelimited liability Company under the

Cyprus Companies Law. The Company holds 76% of the share capital of Oil India CyprusLtd. The balance 24% is held by Oil India Sweden AB. This Company was primarily formed forfunding loan by OIL in the Venezuelan Asset namely PetroCarababo S.A. The Company isunder process of winding up.

iii. Oil India (USA) Inc.

Oil India (USA) Inc. isa wholly owned subsidiary ofthe Company incorporated on 26thSeptember 2012 in Texas.USA. It holds 20% stake in a Niobrara Shale Oil and Gas Asset inUSA. During 2020-21 the company's net profit stood at US$ 0.28 Mn

iv. Oil India International B.V(OIIBV)

Oil India International B.V a wholly owned subsidiary of the Company was incorporatedin Netherlands on 2nd May 2014. It holds 50% stake in WorldAce Investments Limited whichholds 100% in Stimul T. As operating company Stimul T holds 100% in License-61 in Russia.

v. Oil India International Pte. Ltd.(OIIPL)

Oil India International Pte. Ltd. is a wholly owned subsidiary of the Company. TheCompany was incorporated in Singapore on 6th May 2016 as a private Company limited byshares. The company holds 33.5% stake each in Vankor India Pte. Ltd (VIPL) and Taas IndiaPte. Ltd. (TIPL) which in turn hold 23.9% and 29.9% in JSCVankorneftand LLCTYNGDrespectively.

vi. Oil India International Limited (OIIL)

0IIL a wholly owned subsidiary of the Company was incorporated on 20th September2013. The purpose of the company is to act as an overseas investment arm of OIL. Sincenone of its objects associated with formation could be achieved it had been decided towind up the Company through voluntary liquidation which is under progress.

C. JOINT VENTURE / ASSOCIATE COMPANIES

vii. HPOIL Gas Private Ltd. (HPOIL)

HP0IL has equity participation in the ratio of 50:50 from OIL & HPCL. The companyhas been formed to develop CGD Network in Ambala-Kurukshetra and Kolhapur Districts. TheCompany has its registered office at Mumbai and Project office at Ambala and Kolhapur.Project implementation work is in progress. The company is currently operating eight CNGstation at Ambala- Kurukshetra and six CNG stations at Kolhapur Geographical Areas (GAs).During FY 2020-21 HPOIL earned Rs. 9.64 Cr revenue by selling 1685087Kg of CNG.

viii. Purba Bharati Gas Private Limited (PBGPL)

A Joint Venture Company (JVC) in the name of "Purba Bharati Gas PrivateLimited" was incorporated on 19th Nov 2019 with equity participation of 26% from theCompany 26% from GAIL Gas Limited and 48% from Assam Gas Company Limited. The Company hasbeen formed for development of CGD network in Kamrup-Kamrup Metropolitan Districts andCachar Hailakandi and Karimganj Districts. The registered office of

the Company is in Guwahati. PBGPL has started domestic pipe natural gas supply inCachar Hailakandi and & Karimganj Districts GA with 270 nos. domestic connections.

ix. Suntera Nigeria 205 Ltd.

The Company acguired 25% equity stake in Suntera Nigeria 205 Ltd. Nigeria pursuant toa Share Purchase Agreement (SPA) signed with Suntera Cyprus and Indian Oil CorporationLimited (I0CL) on August 31 2006. Suntera Nigeria 205 Ltd. was incorporated with the mainobject to engage in the petroleum business including the prospecting explorationproduction and development of crude oil and natural gas. The registered office of SunteraNigeria is at Lagos.

x. Beas Rovuma Energy Mozambique Ltd. (BREML)

The Company holds 40% share in BREML. BREML holds 10% Participating Interest intheRovumaArealOffshoreBlockin Mozambigue. The Company was incorporated in British VirginIslands but has been redomiciled to Mauritius on 23rd January 2018.

xi. IndOil Netherlands B.V

The Company through its wholly owned subsidiary Oil India Sweden AB owns 50% of theshares in Indoil Netherlands B.V which in turn holds 7% equity shares in PetrocaraboboS.A. (joint venture Company) for Project Carabobo-1 Venezuela.

xii. WorldAce Investments Ltd.

The Company through its wholly owned subsidiary 0IIBV holds 50% share in World AceInvestments Ltd a Company incorporated in Cyprus. World Ace Investments Ltd. holds 100%share in LLC Stimul-T Russia which is the license holder for License 61 Tomsk RegionRussia.

xiii. Vankor India Pte. Ltd. (VIPL)

The Company through its wholly owned subsidiary Oil India International Pte. Ltd(0IIPL) holds 33.5% share in VIPL a Company incorporated in Singapore on 20th May 2016.VIPL holds 23.9% share in JSC Vankorneft Russia which holds two producing licenses inEastern Siberia Russia. Cumulatively till 31.03.2021 an amount eguivalent to USD 340.14million has been received at the VIPL level as dividend corresponding to OIL'S stake inthe project.

xiv. Taas India Pte. Ltd. (TIPL)

The Company through its wholly owned subsidiary Oil India International Pte. Ltd.(OIIPL) holds 33.5% share in TIPL a Company incorporated in Singapore on 23rd May 2016.TIPL holds 29.9% shares in LLC "TYNGD" Russia which holds two producinglicenses in Eastern Siberia Russia. Cumulatively till 31.03.2021 an amount eguivalent toUSD 179.30 million has been received at the TIPL level as dividend corresponding to OIL'Sstake in the project.

19. ANNUAL REPORT OF SUBSIDIARIES AND CONSOLIDATED FINANCIAL STATEMENTS

In accordance with Section 134 of the Companies Act 2013 and the applicable AccountingStandards Audited Consolidated financial statements for the year ended 31st March 2021of the Company and its subsidiaries forms part of this Annual Report.

A report on the performance and financial position of the subsidiaries associates andjoint venture companies of the Company as per the prescribed form (Form A0C-1) of theCompanies Act 2013 also forms part of this Annual Report.

The Complete Annual Reports of subsidiaries of the Company are available on theCompany's website.

20. STATUTORY REQUIREMENTS

Your Directors have made necessary disclosures as required under various provisions ofthe Companies Act 2013 and SEBI (L0DR) Regulations 2015. Information on the Conservationof Energy Technology Absorption Foreign Exchange Earnings & Outgo etc. as requiredunder Section 134 of the Companies Act 2013 and the Rules made thereunder is given in theAnnexure-I to this Report.

In view of the exemption given by Ministry of Corporate Affairs to Government Companiesfrom applicability of Section 197 of the Act the details of the employees who drewremuneration exceeding the limits laid down in the Companies (Appointment and Remunerationof Managerial Personnel) Rules 2014 are not annexedtothe Report.

21. STATUTORY AUDITORS COST AUDITORS AND SECRETARIAL AUDITORS

M/s SRB & Associates and M/s P.A & Associates were appointed as Joint StatutoryAuditors for the financial year 2020-21 by the Comptroller & Auditor General of India(C&AG). The Statutory Auditors have audited the Accounts of the Company for FY 2020-21and submitted the Report to the Company. The C&AG has given "NIL" commentson Financial Statement 2020-21 of the Company.

The Cost Audit Report for the financial year 2019-20 given by M/s Dhananjay V. Joshi& Associates was Died within the statutory time limit. Forthe financial year 2020-21M/s Shome & Banerjee Cost Accountants are the Cost Auditor of the Company. The reportis being finalized and will be Died within the stipulated time frame.

M/s P.P. Agarwal & Co. Practicing Company Secretaries were appointed as theSecretarial Auditor of the Company for FY 2020-21. The Secretarial Audit Report confirmingcompliance to the applicable provisions of the Companies Act 2013 SEBI (L0DR)Regulations 2015 SEBI Guidelines and all other relevant rules and regulations relatingto Capital Market except the board Composition is annexed as Annexure-ll to this Report.Oil India Limited being a Government Company reguest have been made to the administrativeministry viz. Ministry of Petroleum and Natural Gas for compliance of Board Composition.

As a measure of good corporate governance the Secretarial Audit Report of our materialsubsidiary is also annexed hereto

22. ANNUALRETURN

As required under the provisions of the Companies Act 2013 the Annual Return forthefinancial year ended March 31 2021 in the prescribed form MGT-7 has been prepared hostedon the website of the Company at the following weblink :https://www.oil-india.com/8Financial-results.

23. AWARDS AND RECOGNITIONS

During the year 2020-21 following recognitions and awards/accolades were conferredupon the Company by differentagencies

• Exploration & Production- Company of the Year and Excellence in HumanResource Management by Federation of Indian Petroleum Industry (FIPI) at FIPI Award 2020

NewDelhi.

• 7th Annual CSR INDIA 2020 Award in recognition of outstanding CSRpractices and achievements by Greentech Foundation for CSR Project in the area ofEducation and Skill Development.

• Apex India Foundation Award 2019 Platinum Award' under Livelihood Creation forproject OIL Jeevika and 'Gold Award' under Woman Empowerment for Project OIL Arogya inPetroleum Exploration Sector.

• Mahatma Award 2020 for CSR excellence for Corporate Social Responsibility (CSR)initiatives.

• CSR Times Award 2020 best PSU for its Corporate Social Responsibility (CSR)projects OIL Swabalamban on Skill Development and OIL Dikhya on Education at the 7thNational CSR E-Summit in a virtual summit & awards.

• CSR Leadership Awards for its Corporate Social Responsibility (CSR) Initiativesin the area Health and Skill Development. The awards in the category 'Concern for Health'and 'Skill Development' were announced at the World CSR Day Presents CSR LeadershipAwards Mumbai.

• Grow Care Safety Award 2020 Gold Award for'Outstanding achievement in SafetyManagement in Petroleum Storage and Transportation Sector' and 'Outstanding achievement inEnvironment Management in Petroleum Exploration Sector.'

• Apex India Green Leaf Award 2019 Platinum Award' In Energy Efficiency categoryin Petroleum Exploration Sector to Drilling Installation Rig:S-4; 'Golden Award' forEcoInnovation Category in Petroleum Exploration Sector to Drilling Operation TechnicalServices & Cementing Sections of Drilling Services and 'Golden Award' for PlantEfficiency Category in Petroleum Exploration Sector.

• Greentech Safety Award 2020 for outstanding achievements in 'Industry SectorSafety Excellence' by Greentech Foundation.

• Apex India Corona Warrior-2020 to Fire Service Department by Apex IndiaFoundation.

• National Awards of Excellence in PSU in the category of 'Reskilling ofEmployees(Training & Development)'

• Best Training & Development program for in-house training program on BasicLife Support & First Responder (BLS&FR) and Organisation with best HR Practicesfor conducting various training programmes amidst the challenging pandemic situation at 29thedition of World HRD Congress Awards Mumbai.

• Rank -2 in 'Dream Companies to Work For' Awards by World HRD Congress forLearning & Development Initiatives.

• 'Petroleum Rajbhasha Shield' award for exceptional work in Rajbhasha Hindi byMinistry of Petroleum & Natural Gas for theyear2019-20.

24. POLICY ON DIRECTORS' APPOINTMENTS ETC./ PERFORMANCE

EVALUATION

The Company being a Government Company the provisions of Section 134 (3Xe) and Section134(3Xp) of the Companies Act 2013 regarding policy on Directors' appointment andremuneration annual evaluation of the performance of the Board Committees and individualdirectors are not applicable in view of the Gazette notification dated. 05.06.2015 issuedby the Government of India Ministry of Corporate Affairs granting exemptionsto GovernmentCompanies.

Further the said notification also exempted Government Companies from the provisionsof Section 178 (2) which reguires performance evaluation of every director by theNomination & Remuneration Committee.

Similar exemption on the matter for listed CPSEs is awaited fromSEBI.

25. CHANGES IN THE BOARD OF DIRECTORS

a. In terms of Letter No. C-31034/2/2017-CA/FTS: 49128 dated 08.09.2017 issued byMinistry of Petroleum & Natural Gas (MoP&NG) Prof. (Dr.)Asha Kaul(DIN: 06987839)Dr. Priyank Sharma(DIN: 07940638) Shri S. Manoharan (DIN: 03521659) Ms. Amina R. Khan(DIN: 07940639) ceased to be Independent Directors on the Board of Company w.e.f. 8thSeptember 2020 on completion of their tenure.

b. In terms of Letter No. C-31033/1/2016-CA/FTS: 42979 dated 11th December 2020issued by MoP&NG Shri Asheesh Joshi Director (E-l) has been appointed as Govt.Nominee Director on the Board of the Company w.e.f. 22nd December 2020 vice Shri RohitMathur Joint Secretary (G) MoP&NG who ceased to be Director of the Company on10.12.2020.

c. Shri Biswajit Roy Ex-Director(HR&BD)[DIN: 07109038]and Dr. PattabhiramanChandrasekaran Ex-Director (E&D) [DIN: 07778883] superannuated from the services ofthe Company on 30th June 2021 (after close of working hours) and hence ceased to beDirectors of the Company w.e.f. 01st July 2021. Further in terms of letter no.CA-31014/2/2021- PNG (38058) dated 24th June 2021 issued by Ministry of Petroleum &Natural Gas Shri S.C.Mishra Chairman & Managing Director and Shri Harish MadhavDirector (Finance) of the Company have assumed the additional charge of the post ofDirector (E&D) and Director (HR) respectively w.e.f. 1st July 2021.

The Board had taken note of the valuable contributions made by Shri S. Manoharan Prof.(Dr.) Asha Kaul Dr. PriyankSharma Ms. Amina R. Khan Shri Rohit Mathur Shri BiswajitRoy and Dr. Pattabhiraman Chandrasekaran during their respective tenures.

26. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the reguirement under Section 134 (5) of the Companies Act 2013 withrespect to Directors' Responsibility Statement it is hereby confirmed that:

i. in the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

ii. the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfairview 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;

iii. the directors have taken proper and sufficient care for the maintenance ofadeguate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the directors have prepared the annual accounts on a going concern basis;

v. the directors have laid down internal financial controls in the Company which areadeguate and are operating effectively; and

vi. the directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems are adeguate and operating effectively.

27. ACKNOWLEDGEMENT

Your Directors thank the customers vendors investors Auditors bankers and employeesof the Company for their continued support during the year. Your Directors place specialappreciation for the contribution made by the employees at all levels. The consistentgrowth of the Company was made possible by their hard work solidarity co-operation andsupport.

Your Directors acknowledge the guidance and support of the MoP&NG all otherMinistries and Agencies in Central and State Governments and place their sincere thanks.

For and on behalf of the Board of Directors
Sd/-
Place: Noida (Sushil Chandra Mishra)
Date: 19.08.2021 Chairman & Managing Director DIN : 08490095

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