Indian Oil Corporation Limited 3rd Integrated Annual Report 61st Annual Report 2019-20

About the Report

NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS

Note - 29 : OTHER EXPENSES Note - 29.1 : OFFICE,ADMINISTRATION,SELLING AND OTHER EXPENSES (Contd...)
(₹ in Crore)
(₹ in Crore)
Particulars 2019-2020 2018-2019
Particulars 2019-2020 2018-2019

Chairman’s Desk
Consumption:

From the
Provision for Diminution/Loss on Revaluation in Investments (net) 1,114.99 -
a) Stores, Spares and Consumables 1,875.26 1,664.24
Security Force Expenses 825.48 768.75
b) Packages & Drum Sheets 438.79 512.62
Sales Promotion Expenses (Including Commission) 443.39 469.49
2,314.05 2,176.86
Handling Expenses 595.65 541.31
Power & Fuel 21,823.59 26,100.56

About IndianOil
Exploration & Production Cost 57.24 98.15
Less : Fuel from own production 16,637.78 19,827.83
Loss on Derivatives 170.58 -
5,185.81 6,272.73
Fair value Loss on Financial instruments classified as FVTPL 59.11 2.77
Throughput, Processing & Blending Fees, Royalty and Other Charges 1,444.38 1,587.71
Amortisation of FC Monetary Item Translation 28.92 148.39
Octroi, Other Levies and Irrecoverable taxes 1,665.52 1,659.75
Loss on Sale of Investments (Net) - 1.60

Description of Capitals
Repairs and Maintenance
Expenses on Construction Contracts 7.08 6.37
i) Plant & Equipment 3,564.85 3,065.58
Expenses on CSR Activities 543.38 490.60
ii) Buildings 365.71 356.42
Training Expenses 97.06 99.27
iii) Others 518.36 503.71
Legal Expenses / Payment To Consultants 170.34 175.72
4,448.92 3,925.71
Notices and Announcement 18.87 37.51

Board of Directors, etc.

Freight, Transportation Charges and Demurrage 14,097.80 13,310.01
Advertisement and Publicity 62.31 79.70
Office Administration, Selling and Other Expenses (Note “29.1”) 11,151.20 8,918.07
Pollution Control Expenses 96.94 81.82
TOTAL 40,307.68 37,850.84
Amortisation of Fair Value difference in Financial Instruments 291.07 55.72
Less: Company’s use of own Products and Crude 836.39 802.75
Miscellaneous Expenses 416.37 378.28
TOTAL (Net) 39,471.29 37,048.09
TOTAL 11,151.20 8,918.07

Directors’ Report
Note - 29.1 : OFFICE,ADMINISTRATION,SELLING AND OTHER EXPENSES A. Rent Expenses has reduced in current year due to change in Accounting as per Ind AS 116. Kindly refer Note -36 for detailed disclosure
(₹ in Crore) on leases.
Particulars 2019-2020 2018-2019
B. Expenses Includes expenditure on Public Relations and Publicity amounting to ₹ 101.32 crore (2019: ₹ 119.04 crore) which is inclusive
Rent A 477.30 1,115.35
of ₹ 24.82 crore (2019: ₹ 21.13 crore) on account of Staff and Establishment and ₹ 76.50 crore (2019: ₹ 97.91 crore) for payment to
Insurance 151.35 151.85 others. The ratio of annual expenditure on Public Relations and Publicity to the annual turnover (inclusive of excise duty) is 0.00018:1

Discussion & Analysis

(2019: 0.0002:1)

Management’s
Rates & Taxes 148.29 189.54
Donation 0.01 5.71
Payment to Auditors
As Auditors 2.17 2.06

Responsibility Report
For Taxation Matters 0.42 0.45
Other Services(for issuing other certificates etc.) 1.33 1.51

Business
For reimbursement of expenses 0.35 0.32
4.27 4.34
Travelling & Conveyance 714.97 716.98

Corporate Governance
Communication Expenses 54.46 57.18

Report on
Printing & Stationery 41.24 41.32
Electricity & Water 389.80 386.34
Bank Charges 48.44 33.07
Advances & Claims written off 6.25 5.78

Financial Statements
Provision/ Loss on Assets sold or written off (Net) 93.94 152.87

Standalone
Technical Assistance Fees 48.94 34.39
Exchange Fluctuation (net) 3,944.60 1,503.15
Provision for Doubtful Debts, Advances, Claims, CWIP, Stores etc. 28.56 1,084.75

226 Financial Statements Financial Statements 227