Oil India Auditors Report

TO THE MEMBERS OF OIL INDIA LIMITED

Report on the Audit of 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 31^st March, 2023, the Statement of Pro?t and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the Financial Statement including a summary of the signi?cant accounting policies and other explanatory information (hereinafter referred to as "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("The Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards speci?ed under section 133 of the Act read with the Companies (Indian Accounting Standard) Rules,2015 as amended, ("Ind AS") and other accounting principles generally accepted in India of the state of affairs of the Company as at 31^st March,2023, and its pro?t including other comprehensive income, changes in equity and its cash ows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing ("the SAs") speci?ed under section 143(10) of The Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (the "ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made there under, and we have ful?lled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.

Emphasis of Matter

We draw attention to the following matters in the notes to the Standalone Financial Statements. a) Note No. 42.16.1

(b) regarding challenging the levy of GST on royalty on crude oil and natural gas, under the Oil Fields (Regulation & Development) Act, 1948 and considering it as contingent liability. b) Note No. 42.16.2 regarding consideration of GST liability on royalty, paid under protest, as an allowable deduction for computation of taxable income and tax thereon under the Income Tax Act,1961. c) Note No. 42.20.7 regarding provision of further liability, if any, towards remediation of environment due to blowout of a producing gas well around Baghjan #5.

Our opinion on the Standalone Financial Statements is not modi?ed in respect of these matters.

Key Audit Matters

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

Key Audit Matter	Response of Auditors in dealing with the matters
1. Valuation of investments in certain Equity/ Joint Controlled Interest of Unlisted Companies.	Our procedure in relation to managements valuation of the investments include:
	Evaluating the independent professional valuer competence, capabilities and objectivity
The investment as on 31st March, 2023 has been valued by an expert consultant. With reference to the valuation, management had estimated the fair value of the investment. The valuation involved providing signi?cant data and management judgement and accordingly, the valuation of the investment was considered one of the key audit matters.
	Assessing the valuation methodology used by the independent professional valuer to estimate the fair value of the investments.
	Checking on a sample basis, the input data provided by the management to the independent valuer.
The fair value was determined based on the discounted cash ow model. The valuation involved signi?cant judgement including crude oil/ natural gas reserves, future business growth, and future product selling price and production costs to the investee.	Assessing the reasonableness of cash ow projections and audit procedures on managements 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 the management to understand and assess if there was any inconsistency in the assumptions used in the cash ow projections. Based on the audit procedures involved, we found the assumptions made by the management in relation to the valuation were reasonable.
Refer Note 6 to the Standalone Financial Statements.
2. Impairment of Loans to Subsidiaries,	Our procedure in relation to managements evaluation of the loans include:
Associates and Joint Ventures.
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 Nil at year end.	Evaluating the independent professional valuer competence, capabilities and objectivity
	Assessing the valuation methodology used by the independent professional valuer to estimate the fair value of the loans.
The impairment study involved signi?cant management judgement. Accordingly, the impairment of loan was considered one of the key audit matters.	Checking on a sample basis, the input data provided by the management to the independent valuer.
	Assessing the reasonableness of cash ow projections and audit procedures on managements 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.
Refer Note. 8 to the Standalone Financial Statements.
	Discussed with the management to understand and assess if there was any inconsistency in the assumptions used in the cash ow projections. Based on the audit procedures involved, we found the assumptions made by the management in relation to the valuation were reasonable.

 

Key Audit Matter	Response of Auditors in dealing with the matters
	Our audit procedures include:
3. Evaluation of uncertain tax positions
The Company has material uncertain tax positions including matters under dispute which involves signi?cant 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 managements assessment of the validity and adequacy 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 tax authority.
	Assessed the appropriateness of managements assumptions and estimates including the likelihood of generating sucient future taxable income to support deferred tax assets.
	Assessed and reviewed the presentation and disclosures in the standalone ?nancial statements. Based on the procedure performed above, we obtained sucient audit evidence to corroborate managements estimates regarding current and deferred tax balances and provision for uncertain tax positions.
4. Contingent Liabilities against litigation and claims	We have obtained an understanding of the Companys 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 managements judgement is required 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 identi?ed this as a key audit matter because the estimates on which these amounts are based involve a signi?cant 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.
	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.
Refer Note. 42.21.1A to the Standalone Financial Statements.
	Examined managements judgements and assessments as to whether provisions are required.
	Considered the management assessments on those matters that are not disclosed as the probability of material outow is considered to be remote.
	Reviewed the adequacy and completeness of disclosures.
	Based on the above procedures performed, the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable.

Information Other than the Standalone Financial Statements and Auditors Report thereon:

The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Directors Report including Annexures to Directors Report, Management Discussion and Analysis Report and Report on Corporate Governance but does not include the Standalone Financial Statements and our Auditors Report thereon.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identi?ed above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of Auditors report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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 therein, we are required to communicate the matter to those charged with governance.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the ?nancial position, ?nancial performance including Other Comprehensive Income, cash ows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) speci?ed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2015. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal ?nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternatives but to do so. The Board of Directors is also responsible for overseeing the Companys ?nancial reporting process.

Auditors Responsibility for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to inuence the economic decisions of users taken on the basis of these Standalone Financial Statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

Obtain an understanding of internal ?nancial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal

?nancial controls system in place and the operating effectiveness of such controls.

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

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signi?cant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signi?cant audit ?ndings, including any signi?cant de?ciencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most signi?cance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matters or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest bene?ts of such communication.

Other Matters

1. The Standalone Financial Statements and other ?nancial information include the Companys proportionate share in joint ventures in respect of assets 2,499.08 crore, liabilities 2,109.29 crore, expenses 229.51 crore, income 428.61 crore and the elements making up the Statement of Cash Flow and related disclosures as at 31^st March, 2023 which is based on unaudited statements from the operator and certi?ed by the management.

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

Our opinion is not modi?ed 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 of the 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 the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we give in the Annexure ‘A and Annexure ‘B, statement on the matters speci?ed in the Directions and Additional-directions of C&AG respectively.

2. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we give in the Annexure ‘C, a statement on the matters speci?ed 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 best of our knowledge and belief were necessary for the purposes of our audit;

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

(c) The Balance Sheet, the Statement of Pro?t and Loss including other comprehensive income, the Statement of changes in equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards (Ind AS) speci?ed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 as amended;

(e) In terms of noti?cation No.

G.S.R.463

(E) dated 05th June, 2015 issued by the Ministry of Corporate Affairs, section 164

(2) of the Act regarding the disquali?cation of directors is not applicable to the Company, since it is a Government Company;

(f) With respect to the adequacy of the internal ?nancial controls over ?nancial reporting of the Company and the operating effectiveness of such controls, as required under Section 143

(3)

(i) of the Act, refer to our separate report in Annexure ‘D.

(g) In terms of noti?cation No.

G.S.R.463

(E) dated 05th June, 2015 issued by the Ministry of Corporate Affairs, section 197 of the Act regarding remuneration to directors is not applicable to the Company, since it is a Government Company;

(h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its ?nancial position in its Standalone Financial Statements –Refer Note 42.21.1A.

(a) to the Standalone Financial Statements; i

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

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

iv.

(a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identi?ed in any manner whatsoever by or on behalf of the Company ("Ultimate Bene?ciaries") or provide any guarantee, security or the like on behalf of the Ultimate Bene?ciaries;

(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identi?ed in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Bene?ciaries") or provide any guarantee, security or the like on behalf of the Ultimate Bene?ciaries;

(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause

(i) and

(ii) of Rule 11

(e), as provided under

(a) and

(b) above, contain any material misstatement.

v. As stated in Note 22 to the Standalone Financial Statements:

(a) The ?nal dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.

(b) The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act.

(c) As stated in the Note No. 22.3 to the Standalone Financial Statement, the Board of Directors of the Company have proposed ?nal dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1^st April, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the year ended 31^st March, 2023.

For P.A. & ASSOCIATES	For V. SINGHI & ASSOCIATES
Chartered Accountants	Chartered Accountants
Firm Regn. No: 313085E	Firm Regn. No:311017E
Sd/-	Sd/-
(CA Dinesh Agrawal)	(CA Partha Dasgupta)
Partner	Partner
Membership No.: 055955	Membership No.: 054566
UDIN: 23055955BGWTMD4835	UDIN: 23054566BGWQJY7347
Place: Noida
Date: 24th May, 2023

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT

Statement on the matters speci?ed in the Directions of C&AG as referred in Paragraph 1 of Report on Other Legal and Regulatory Requirements paragraph of our report of even date to the members of OIL INDIA LIMITED on the Standalone Financial Statements for the year ended 31^st March, 2023.

Sl. No.	Direction	Reply
1	Whether the Company has system in place to process all the accounting transaction through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the ?nancial implications, if any, may be stated.	During the year under review the Company has maintained all the accounting transactions through IT 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 Companys inability to repay the loan? If yes, the ?nancial impact may be stated. Whether such cases are properly accounted for? (in case, lender is a Government Company, then this direction is also applicable for statutory auditor of lender Company)	No such restructuring of any existing loans or cases of waiver / write off of debts / loans / interest etc. made by the lender.
3	Whether funds (grants/subsidy etc.) received/receivable for speci?c schemes from Central/State Governments and its agencies were properly accounted for / utilized as per its term and conditions? List the cases of deviation.	During the year under review, funds (grants/subsidy) received / receivable for speci?c schemes from Central / State agencies were properly accounted for / utilised as per its terms and conditions.

 

For P.A. & ASSOCIATES	For V. SINGHI & ASSOCIATES
Chartered Accountants	Chartered Accountants
Firm Regn. No: 313085E	Firm Regn. No:311017E
Sd/-	Sd/-
(CA Dinesh Agrawal)	(CA Partha Dasgupta)
Partner	Partner
Membership No.: 055955	Membership No.: 054566
UDIN: 23055955BGWTMD4835	UDIN: 23054566BGWQJY7347
Place: Noida
Date: 24th May, 2023

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

Statement on the matters speci?ed in the Additional Directions of C&AG as referred in Paragraph 1 of Report on Other Legal and Regulatory Requirements paragraph of our report of even date to the members of OIL INDIA LIMITED on the Standalone Financial Statements of the Company for the year ended 31^st March, 2023.

Additional-direction

Reply

I 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 (or similar 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 for delay/non-payment of the same.

 

For P.A. & ASSOCIATES	For V. SINGHI & ASSOCIATES
Chartered Accountants	Chartered Accountants
Firm Regn. No: 313085E	Firm Regn. No:311017E
Sd/-	Sd/-
(CA Dinesh Agrawal)	(CA Partha Dasgupta)
Partner	Partner
Membership No.: 055955	Membership No.: 054566
UDIN: 23055955BGWTMD4835	UDIN: 23054566BGWQJY7347
Place: Noida
Date: 24th May, 2023

ANNEXURE C TO THE INDEPENDENT AUDITORS REPORT

Referred to in Paragraph-2 on Other Legal and Regulatory Requirements of our Report of even date to the members of Oil India Limited on the Standalone Financial Statements for the year ended 31^st March, 2023.

(i) (a)

A. The Company has maintained proper records showing full particulars, including quantitative details and situation of its Property, Plant & Equipment and Right-of-use assets.

B. The Company has maintained proper records showing full particulars of its Intangible Assets.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has a regular programme of physical veri?cation of its Property, Plant and Equipment except Oil & Gas Assets and Leased Assets which have been veri?ed in a phased manner over a period of three years. In accordance with this programme, certain Property, Plant and Equipment were veri?ed during the year. In our opinion, this periodicity of physical veri?cation is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such veri?cation.

(c) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the Standalone Financial Statements are held in the name of the Company except as stated in the Appendix ‘A. (d) According to the information and explanations given to us and on the basis of our examination of the books and records of the Company, the Company has not revalued its Property, Plant and Equipment (including Right-of-use Assets) or Intangible Assets or both during the year.

(e) According to the information and explanations given to us, no proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) (a) According to the information and explanations given to us, physical veri?cation of inventory has been conducted at reasonable intervals by the management and in our opinion and to the best of our knowledge, the coverage and procedure of such veri?cation by the management is appropriate and no discrepancies were noticed between the physical stocks and the book records that were 10% or more in the aggregate for each class of inventory.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of ?ve crore rupees, in aggregate, from banks on the basis of security of current assets. In our opinion, the quarterly returns or statements ?led by the Company with such banks are in agreement with the books of account of the Company.

(iii) During the year, the Company has not made investment in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or any other parties except investment made in subsidiaries and Joint Ventures.

(a) The Company has not provided any loans or advances in the nature of loans or stood guarantee or provided security to any other entity during the year except guarantee provided to the following entity:

	Guarantees	Security	Loans	Advances in nature of Loans
Aggregate amount granted/ provided during the year	518.80 crore	-	-	-
- Joint Ventures
Balance outstanding as at balance sheet date in respect of above cases	-	-	-	-
- Joint Ventures

(b) According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in nature of loans and guarantees provided are prima facie, not prejudicial to the Companys interest.

(c) According to the information and explanations given to us and on the basis of our examination of the books and records of the Company, in the case of loans given, the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been generally regular as per stipulation apart from one Subsidiary and a Joint Venture Company.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given except in respect of loan granted to a Subsidiary and Joint Venture Company amounting to 109.22 crore (US$ 13.20 millions) and interest amounting to 245.32 crore (US$ 29.65 millions) upto 31^st March,2023.

(e) According to the information and explanations given to us and on the basis of our examination of the books and records of the Company, there is no loan given falling due during the year, which has been renewed or extended or fresh loans given to settle the overdues of existing loans given to the same party. (f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not given any loans either repayable on demand or without specifying any terms or period of repayment.

(iv) According to the information and explanations given to us and on the basis of our examination of the books and records, the Company has complied with the provisions as speci?ed under Sections 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security. (v) According to the information and explanations given to us, the Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, clause 3(v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company as speci?ed by the Central Government under sub-section (1) of section 148 of the Companies Act and are of the opinion that, prima facie, such accounts and records have been made and maintained. We have not, however, made a detailed examination of the accounts and records maintained as aforesaid.

(vii) According to the information and explanations given to us in respect of statutory dues: (a) In our opinion, the Company is regular in depositing undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees State Insurance, Income-Tax, Sales-Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues to the appropriate authorities. According to the information and explanations given to us and on the basis of our examination of the records, no undisputed amounts are payable in respect of statutory dues as on the last day of the ?nancial year concerned for a period of more than six months from the date they became payable except for the following:

Sl. No.	Nature of Dues	Amount Involved ( in crore)	Amount due since	Date of payment	Extent of Delay	Remarks, if any
1.	GST on advance received from Customer	9.57	20th April, 2022	19th May, 2023	388 days	-

(b) According to the information and explanations given to us, there are no dues of Goods & Service Tax, Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Duty of Customs, Value Added Tax, Cess or other statutory dues which have not been deposited by the Company on account of disputes, except for the following:

			Amount ( In Crore)
Name of the Statute	Nature of Dues	Period to which the amount relates	Gross Amount involved	Amount paid under protest	Amount unpaid	Forum where Dispute is Pending
		July2008 to March2009	0.30	0.01	0.29	CESTAT,
		April2009 to March2010	0.40	0.02	0.38	Kolkata
		April2014 to March2015	7.08	@	7.08
		July2012 to March2017	260.92	@	260.92	CESTAT, Hyderabad
Finance Act, 1994	Service Tax	April 2016 to June 2017	255.69	255.69	@	Honble Gauhati High Court
		April 2014 to June 2017	36.88	8.00	28.88	CESTAT, Kolkata
CGST Act,2017	GST on	April 2016 to June 2017	3.98	1.44	2.54	Honble Rajasthan High Court, Jodhpur Bench Honble Gauhati
& Assam GST Act,2017	Royalty	July2017 to March2023	1,975.89	1,179.54	796.35	High Court
CGST Act, 2017 & Arunachal	GST on	July2017 to March2023	11.58	6.05	5.53	Honble Gauhati
Pradesh GST Act,2017	Royalty					High Court
Assam Land Revenue	Land	2009-10 to 2022-23	12.56	-	12.56	Honble Supreme Court
Assessment Act, 1936	Revenue
Petroleum and Natural Gas Rules, 1959	Surface Rent for leased land	January 1996 to March, 2023	11.20	-	11.20	Govt. of Rajasthan, Directorate of Petroleum
CGST Act, 2017 & Rajasthan GST Act,2017	GST on Royalty	July2017 to March2023	11.45	11.05	0.40	Honble Rajasthan High Court, Jodhpur Bench
CGST Act,2017	Availment					Commissioner of
& Assam GST Act,2017	of Tran – I credit	July2017 to March2018	1.62	-	1.62	Appeal (CGST & Central Excise)

 

			Amount ( In Crore)
Name of the Statute	Nature of Dues	Period to which the amount relates	Gross Amount involved	Amount paid under protest	Amount unpaid	Forum where Dispute is Pending
CGST Act,2017 & Assam GST Act,2017	Availment of Tran – I credit	July2017 to March2018	2.90	-	2.90	Appeal Pending to be ?led
Income Tax Act, 1961	Income Tax	AY 2012-13	3.87	-	3.87	CIT(Appeal)
Income Tax Act,	Matters Income Tax	AY 2017-18 & 2018-19 &	252.82	223.76	29.06	CIT(Appeal)
1961	Matters	2019-20
		(i) For the period from February, 2010 to September, 2011				Honble Gauhati High Court,
ESI Act, 1948	ESI	and (ii) For the period from October, 2011 to December, 2014	2.45	-	2.45	WP(C) No. 2295/2018

(viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income-tax Act, 1961 (43 of 1961) as income during the year.

(ix)

(a) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or other borrowings or in payment of interest thereon to any lender. b) According to the information and explanations given to us, and based on our examination, we report that the Company has not been declared a willful defaulter by any bank or ?nancial institution or government or government authority.

c) According to the information and explanations given to us and on the basis of our examination of the books and records of the Company, term loans obtained were applied for the purpose for which the loans were obtained. d) According to the information and explanations given to us on an overall examination of the balance sheet of the Company, we report that no funds raised on short term basis have been utilized for long term purposes. e) According to the information and explanations given to us and based on our examination of the Standalone Financial Statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures except for the following:

Nature of Fund Taken	Name of Lender	Amount Involved	Name of the Subsidiary, Joint Venture and Associate	Relation	Nature of Transaction for which fund utilized
External	State Bank of	161.34 Crore	Beas Rovuma	Joint	Investment in BREML for
Commercial Borrowing	India (New York)	(USD 19.50 Million)	Energy Mozambique Ltd (BREML)	Venture	Mozambique Project

f) According to the information and explanations given to us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies, as de?ned under the Companies Act, 2013. x. (a) According to the information and explanations given to us and based on our examination of the books and records, we report that the Company has not raised during the year any money by way of initial public offer or further public offer (including debt instruments).

(b) According to the information and explanations given to us and based on our examination of the books and records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly or optionally convertible debentures during the year. xi. (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Companies Act, 2013 has been ?led by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government. (c ) According to the information and explanations given to us, no whistle blower complaints have been received by the Company during the year. xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable to the Company. xiii. In our opinion and according to the information and explanations given to us and based on our examination of the books and records, the transactions with related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013, wherever applicable, and the details of the related party transactions have been disclosed in the Standalone Financial Statements as required by the applicable Indian Accounting Standards.

xiv. (a) According to the information and explanations given to us and based on our examination, the Company has an internal audit system commensurate with the size and nature of its business.

(b) We have considered the Internal Audit Reports of the Company issued for the year under audit xv. According to the information and explanations given to us and based on our examination of the books and records, the Company has not entered into any non-cash transactions with its Directors or persons connected to its Directors and hence, provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company. xvi. (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Order is not applicable to the Company.

(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities. Accordingly, clause 3(xvi)(b) of the Order is not applicable to the Company.

(c ) The Company is not a Core Investment Company (CIC) as de?ned in the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi) (c) of the Order is not applicable to the Company. (d) According to the information and explanations provided to us during the course of audit, the Group does not have any CIC as part of the Group. Accordingly, the requirements of clause 3(xvi)(d) are not applicable to the Company. xvii. According to the information given to us and based on our examination of the books of the Company, the Company has not incurred cash losses in the ?nancial year and in the immediately preceding ?nancial year. xviii. According to the information given to us and based on our examination of the records of the Company, there has not been any resignation of the Statutory Auditors of the Company during the year. Accordingly, clause 3(xviii) of the Order is not applicable to the Company.

xix. According to the information and explanations given to us and on the basis of the ?nancial ratios, ageing and expected dates of realisation of ?nancial assets and payment of ?nancial liabilities, other information accompanying the Standalone Financial Statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of Balance Sheet as and when they fall due within a period of one year from the Balance Sheet date. xx. In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-section (5) of Section 135 of the Companies Act, 2013 pursuant to any project. Hence, clause 3(xx)(b) of the Order is not applicable to the Company.

For P.A. & ASSOCIATES	For V. SINGHI & ASSOCIATES
Chartered Accountants	Chartered Accountants
Firm Regn. No: 313085E	Firm Regn. No:311017E
Sd/-	Sd/-
(CA Dinesh Agrawal)	(CA Partha Dasgupta)
Partner	Partner
Membership No.: 055955	Membership No.: 054566
UDIN: 23055955BGWTMD4835	UDIN: 23054566BGWQJY7347
Place: Noida
Date: 24th May, 2023

ANNEXURE D TO THE INDEPENDENT AUDITORS REPORT

The Annexure D referred to in paragraph 3(f) of Report on Other Legal and Regulatory Requirements paragraph of our report of even date to the members of OIL INDIA LIMITED on the Standalone Financial Statements for the year ended 31^st March, 2023.

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

We have audited the internal ?nancial controls over ?nancial reporting of Oil India Limited ("the Company") as of 31^st March, 2023 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal ?nancial controls based on the internal control over ?nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal ?nancial controls that were operating effectively for ensuring the orderly and ecient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable ?nancial information, as required under the Act.

AuditorsResponsibility

Our responsibility is to express an opinion on the Companys internal ?nancial controls over ?nancial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal ?nancial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal ?nancial controls over ?nancial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal ?nancial controls system over ?nancial reporting and their operating effectiveness. Our audit of internal ?nancial controls over ?nancial reporting included obtaining an understanding of internal ?nancial controls over ?nancial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the ?nancial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for our audit opinion on the Companys internal ?nancial controls system over ?nancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Companys internal ?nancial control over ?nancial reporting is a process designed to provide reasonable assurance regarding the reliability of ?nancial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A companys internal ?nancial control over ?nancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion, the Company has, in all material respects, an adequate internal ?nancial controls system over ?nancial reporting and such internal ?nancial controls over ?nancial reporting were operating effectively as at 31^st March 2023, based on the internal control over ?nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For P.A. & ASSOCIATES	For V. SINGHI & ASSOCIATES
Chartered Accountants	Chartered Accountants
Firm Regn. No: 313085E	Firm Regn. No:311017E
Sd/-	Sd/-
(CA Dinesh Agrawal)	(CA Partha Dasgupta)
Partner	Partner
Membership No.: 055955	Membership No.: 054566
UDIN: 23055955BGWTMD4835	UDIN: 23054566BGWQJY7347
Place: Noida
Date: 24th May, 2023