INDIAN OIL CORPORATION

INTRODUCTION
Indian Oil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oil Corporation Limited, or Indian Oil, (BSE: 530965, NSE: IOC) is an Indian stateowned oil and gas corporation with its headquarters in New Delhi, India. The company is the world's 83rd largest public corporation, according to the Fortune Global 500 list, and the largest public corporation in India when ranked by revenue. Indian Oil and its subsidiaries account for a 49% share in the petroleum products market, 31% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 22 refineries with a combined refining capacity of 65.7 million metric tonnes per year. The President of India owns 78.92% (1.9162 billion shares) in the company. In FY 2012 IOCL sold 75.66 million tonnes of petroleum products and reported a PBT of 37.54 billion, and the Government of India earned an excise duty of 232.53 billion and tax of 10.68 billion. It is one of the five Maharatna status companies of India, apart from Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation and Steel Authority of India Limited Indian Oil operates the largest and the widest network of fuel stations in the country, numbering about 20,575 (16,350 regular ROs & 4,225 Kisan Seva Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 66.8 million households through a network of 5,934 Indane distributors. In addition, Indian Oils Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. On 28 May 2012, Indian Oil hinted at reduction in prices of petrol.

Products
Indian Oil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin, kerosene etc. Xtra Premium petrol, Xtra Mile diesel, Servo lubricants, Indane LPG cooking gas, Autogas LPG, IndianOil Aviation are some of its prominent brands. Recently Indian Oil has also introduced a new business line of supplying LNG (liquefied natural gas) by cryogenic transportation. This is called "LNG at Doorstep".

Indane Gas Auto Gas Natural Gas Petrol/Gasoline Diesel/Gas oil ATF/Jet Fuel SERVO lubricants & greases Marine Fuels & Lubricants Kerosene Bulk/Industrial Fuels Bitumen

Petrochemicals Special Products Crude Oil

Group companies and joint ventures

Indian Oil Bhavan, New Delhi.

Indian Oil (Mauritius) Ltd. Lanka IOC PLC Group company for retail and storage operations in Sri Lanka. It is listed in the Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka's Government which has since been resolved.[citation needed] IOC Middle East FZE Chennai Petroleum Corporation Limited Green Gas Ltd. a joint venture with Gas Authority of India Ltd. for city-wide gas distribution networks. Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts & additives in India. IndianOil CREDA Biofuels Ltd., a joint venture with Chattisgarh government for production and marketing of Bio-fuels. Numerous exploration and production ventures with Oil India Ltd., Oil and Natural Gas Corporation

VISION OF IOCL

VALUES OF IOCL Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a set of core values: CARE INNOVATION PASSION TRUST

Current strategies as a leader Defending its market share Market leader in branded fuels with 60% market share Branded fuel growth rate is 75% for IOCL Porters generic strategies Overall cost leadership Differentiation Focus Strategic alliance product or service alliance Promotional alliance Logistic alliance Pricing collaboration

BUSINESS LEVEL STRATEGY

The Cutting Edge Planning & Economics of refinery operations Project Management for competitive advantage Strategic Management of plant reliability & turnaround for competitive advantage Strategic Petro Retail Marketing Strategic b2b Marketing Hybrid Certificate programme in project management Enhancing Shareholders Wealth

CORPORATE LEVELSTRATEGY
To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services and cost reduction. To maximize creation of wealth, value and satisfaction for the stakeholders. To attain leadership in developing, adopting and assimilating state-of- the-art technology for competitive advantage. To provide technology and services through sustained Research and Development. To foster a culture of participation and innovation for employee growth and contribution. To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

INTERNATIONAL LEVEL STRATEGY

To blend, manufacture and sell synthetic, semi synthetic and mineral based lubricating oils, greases and hydraulic fluids, related products and specialties for Defence and Civil Aviation uses. To construct and import facilities for LPG import at Haldia and to engage in parallel marketing of LPG.
To construct and operate a pipeline for transportation of petroleum products from Vadinar to Kandla.

Expanding Horizons IndianOil is currently metamorphosing from a pure sectoral company with dominance in downstream in India to a vertically integrated, transnational energy behemoth. The Corporation is already on the way to becoming a major player in petrochemicals by integrating its core refining business with petrochemical activities, besides making large investments in E&P and import/marketing ventures for oil&gas in India and abroad.

Company's future moves in context of strategy

Blended fuel brand repositioning has to be done, as they are not able to capture the intended turnover response from the market Company needs to improve upon upstream R & D so as to be an integrated energy company and be self-sufficient. Company should go for independent Oil block acquisition in future after attaining sufficient experience in that area. India 70% unexplored sedimentary blocks provide a potential opportunity for the company for diversification Global competitiveness-With Governments relaxation in FDI norms,(up to 49% allowed in refining sector),Indian Government might reduce its share in IOCL inorder to streamline fund raising and compete globally. Trans-national : IOCL must go bullish on future acquisitions of oil blocks either in India or abroad Diversified : IOCL must push for the 5% ethanol(jatropha) blended diesel to promote bio-fuels Integrated energy company :.IOCL should market itself as a integrated energy company by venturing into diversified energy sources like ,Solar power expansion will increase in a large scale and bio-fuel plantation will be on increased scaled.

Impact of strategy on organization

Indian oils refineries achieved the highest ever crude throughput of 55.62 million tonnes during the year, surpassing the previous best of 52.96 million tonnes achieved in 2010-11. With an overall capacity utilization of 102.6% for the year, your Corporation has consistently attained a capacity utilization of over 100% since last five years. The optimum operation of secondary units at all refineries, as well as minimized downtime, has enabled the refineries in achieving the highest combined distillate yield of 77.8 wt%. During the year, high sulphur crude processing was maximised at 49.2% of total crude processed as compared to 45.1% of total crude processed in 2010-11. OILs Chairman & Managing Director, Mr. S.K. Srivastava said This acquisition is in line with our corporate strategy of diversification. We have earmarked part of our financial reserves for acquisitions and new opportunities to bolster our overseas portfolio and were keen on joint ventures in countries with geopolitical stability such as the US, UK, Canada and Australia. This acquisition will also help us gain experience in the technology and operations of shale / tight oil fields and use its findings to implement the same in India, he said. IndianOil continues to be the market leader in the aviation fuel business with a market share of 61.7% and enjoys leadership in all segments like domestic airlines, international airlines, defence services and scheduled airlines To meet its requirements of Crude Oil and Petroleum products through a carefully selected and diversified mix of supply sources, the Corporation imported 52.64 million tonnes of crude oil amounting to Rs. 2,09,715 crore as against 50.44 million tonnes amounting to Rs. 1,45.983 crore in previous year. The import of petroleum products during the year was 4.58 million tonnes amounting to Rs. 20,885 crore as against 5 57 million tonnes amounting to Rs. 19,565 crore in the previous year. IndianOil also exported petroleum and petrochemical products worth Rs. 19,636 crore during the year as against Rs. 16,781 crore in the previousYear.

The year 2011-12 was a very eventful year for IndianOil''s R&D Centre as two units based on the in-house technologies developed by R&D Centre were successfully commissioned in Bongaigaon Refinery, one being the DHDT for production of diesel and the other being the Isomerisation unit for production of MS. Further, two other in-house developed technologies viz. Indalin technology and INDAdept technology developed by R&D Centre have been accepted Inprinciple for demonstration trials at Panipat Refinery and Guwahati Refinery respectively. During the year, 15 Patents were filed. Six Patents were granted, which includes two Indian, one U.K., one U.S.A., one Chinese and one Singapore Patent.

FINANCIAL DATA OF INDIAN OIL CORPORATION

Balancesheet - Indian Oil Corporation Ltd.

Particulars Liabilities Share Capital Reserves & Surplus Net Worth Secured Loans Unsecured Loans TOTAL LIABILITIES Assets Gross Block (-) Acc. Depreciation Net Block Capital Work in Progress. Investments. Inventories Sundry Debtors Cash And Bank Loans And Advances Total Current Assets 99,455.46 39,336.13 60,119.33 13,434.77 18,678.46 56,829.20 15,502.87 307.01 44,988.11 92,696.69 34,509.29 58,187.40 12,620.44 19,544.76 49,284.52 8,869.65 1,294.42 25,454.49 71,780.60 30,199.53 41,581.07 21,268.63 22,370.25 36,404.08 5,799.28 1,315.11 17,453.01 60,971.48 62,104.64 27,326.19 34,778.45 18,186.05 32,232.13 25,149.60 5,937.86 798.02 13,348.99 45,234.47 56,731.50 23,959.68 32,771.82 9,170.22 21,535.78 30,941.48 6,819.23 824.43 14,920.93 53,506.07 Mar'12 12 Months 2,427.95 55,448.75 57,876.70 13,045.97 57,277.96 Mar'11 12 Months 2,427.95 52,904.37 55,332.32 20,379.65 32,354.22 Mar'10 12 Months 2,427.95 48,124.88 50,552.83 18,292.45 26,273.80 Mar'09 12 Months 1,213.97 42,789.29 44,003.26 17,565.13 27,406.93 88,975.32 Mar'08 12 Months 1,192.37 39,893.88 41,086.25 6,415.78 29,107.39 76,609.42

128,200.63 108,066.19 95,119.08

117,627.19 84,903.08
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Current Liabilities Provisions

Total Current Liabilities NET CURRENT ASSETS

66,510.58 15,148.54
81,659.12 35,968.07

60,441.18 6,763.46
67,204.64 17,698.44

40,818.96 10,271.56
51,090.52 9,880.96

38,890.28 2,603.46
41,493.74 3,740.73

39,326.07 1,172.99
40,499.06 13,007.01

Misc. Expenses
TOTAL ASSETS (A+B+C+D+E)

0.00
128,200.63

15.15
108,066.19

18.17
95,119.08

37.96
88,975.32

124.59
76,609.42

Profit & Loss - Indian Oil Corporation Ltd.

Mar'12 12 Months Mar'11 12 Months INCOME: Sales Turnover Excise Duty NET SALES Other Income TOTAL INCOME 463,285.27 357,275.89 291,272.84 329,806.88 270,410.49 24,455.59 26,141.04 21,834.76 22,682.89 23,051.25 Mar'10 12 Months Mar'09 12 Months Mar'08 12 Months

438,829.68 331,134.85 269,438.08 307,123.99 247,359.24 0.00 0.00 0.00 0.00 0.00

442,027.70 334,359.58 272,758.43 309,833.58 249,781.97 EXPENDITURE:

Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made TOTAL EXPENDITURE Operating Profit EBITDA Depreciation Other Write-offs EBIT Interest EBT Taxes Profit and Loss for the Year Non Recurring Items Other Non Cash Adjustments

5,267.68

3,518.60

1,755.28

1,500.51

1,558.14

391,533.39 294,834.04 235,668.52 275,383.54 221,256.55 4,980.06 4,321.11 14,283.79 0.00 0.00 6,429.58 12,250.68 2,436.16 -945.24 0.00 5,723.96 10,488.13 1,824.74 -1,121.28 0.00 5,686.96 9,684.04 1,888.60 -544.01 0.00 2,894.86 8,753.07 2,004.30 -403.58 0.00

420,386.03 318,523.82 254,339.35 293,599.64 236,063.34 18,443.65 21,641.67 4,867.79 0.00 16,773.88 5,590.54 11,183.34 -200.34 11,383.68 -7,707.82 278.76 12,611.03 15,835.76 4,546.67 132.04 11,157.05 2,702.14 8,454.91 1,297.71 7,157.20 330.21 -41.93
10

15,098.73 18,419.08 3,227.14 133.98 15,057.96 1,572.35 13,485.61 3,097.87 10,387.74 -130.67 -36.52

13,524.35 16,233.94 2,881.71 317.64 13,034.59 4,020.98 9,013.61 1,364.71 7,648.90 -5,615.51 915.26

11,295.90 13,718.63 2,709.70 236.53 10,772.40 1,589.73 9,182.67 3,104.54 6,078.13 705.81 178.64

Other Adjustments REPORTED PAT

0.00 3,954.62

0.00 7,445.48

0.00 10,220.55

0.90 2,949.55

0.00 6,962.58

KEY ITEMS Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs) EPS - Annualised (Rs) 0.00 1,213.98 50.00 24,279.52 16.29 0.00 2,306.55 94.99 24,279.52 30.67 0.00 3,156.34 130.00 24,279.52 42.10 0.00 910.48 76.35 11,923.74 24.74 0.00 655.81 55.00 11,923.74 58.39

Cash Flow
Particulars Profit Before Tax Net Cash Flows from Operating Activity Net Cash Used in Investing Activity Net Cash Used in Financing Activity Net Inc/Dec in Cash and Cash Equivalent Cash and Cash Equivalent Beginning of the Year Cash and Equivalent - End of the Year Mar'12 3,754.31 -2,762.38 12,246.29 14,021.93 -986.74 1,294.42 307.68 Mar'11 9,095.86 5,681.20 Mar'10 Mar'09 23,156.96 19,177.91 3,950.40 -28.65 826.67 798.02 Mar'08 10,080.40 -9,382.79 4,376.55 4,904.70 -101.54 925.97 824.43 14,106.09 4,328.59 -464.70

-7,217.99 4,676.10 1,516.11 -20.68 1,315.11 1,294.43 -3,694.23 517.17 798.02 1,315.19

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CONCLUTION

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