1.  As advised by the Ministry of Petroleum & Natural Gas, the
 Corporation has accounted compensation towards sharing of
 under-recoveries on sale of sensitive petroleum products as follows:
 
 a) Rs 5,746.54 crores (previous year Rs 2,927.27 crores) discount on
 crude oil purchased from ONGC has been adjusted against raw material
 cost;
 
 b) Rs 1,213.50 crores (previous year Rs 702.57 crores) discounts on SKO
 and LPG purchased from ONGC/GAIL has been adjusted against Purchase of
 products and crude oil for resale.
 
 c) Rs 9,418.88 crores (previous year Rs 5,265.03 crores) subsidy from
 Government of India has been accounted as Income.
 
 2.  Debentures
 
 a) The Corporation had allotted redeemable non-convertible 7.73%
 Debentures of face value of Rs 1,000 crores on 12th October 2009. These
 are secured by first legal mortgage in English form by way of a
 Registered Debenture Trust Deed over the fixed assets of the Company,
 viz., a Flat at Mumbai and the Plant and Machinery in respect of
 Refinery Modernisation Project Crude Distillation Unit / Vacuum
 Distillation Unit, Catalytic Cracking Unit, Fluid Catalytic Cracking
 Unit, Diesel Hydro Desulphurisation Unit and Naphtha Hydro
 Desulphurisation Unit of the Mumbai Refinery. In order to maintain the
 security cover of 1.25 times, all future immovable properties including
 Land, Plant & Machinery and Fixtures & Fittings shall be a part of the
 Premises and Plant & Machinery which are mortgaged. These Debentures
 are redeemable at par on 9th October 2012.
 
 b) The Corporation has allotted redeemable non-convertible 6.23%
 Debentures of face value of Rs 1,000 crores on 30th April 2010. These
 are secured by first legal mortgage in English form by way of a
 Registered Debenture Trust Deed over the fixed assets of the Company,
 viz., a Flat at Mumbai and Plant and Machinery of the company in
 respect of its Process Equipments situated at Mahul Refinery. In order
 to maintain the security cover of 1.25 times, all future immovable
 properties including Land, Plant & Machinery and Fixtures & Fittings
 shall be a part of the Premises and Plant & Machinery which are
 mortgaged. These Debentures are redeemable at par on 28th October 2011.
 
 3.  As per the scheme of Amalgamation of the erstwhile Kochi Refineries
 Limited with the Corporation approved by the Government of India,
 33,728,738 equity shares of the Corporation were allotted (in lieu of
 the shares held by the Corporation in the erstwhile Kochi Refineries
 Limited) to a trust for the benefit of the Corporation in the financial
 year 2006-07. Accordingly the cost of the original investment of Rs
 659.10 crores is reflected as ''Others'' in Schedule ''J '' - Other Current
 Assets. The income distributed by the trust during the year 2010-11
 amounting to Rs 47.22 crores (previous year Rs 23.61 crores) has been
 included in ''Other income'' in Schedule ''O'' – Miscellaneous Income.
 
 One shareholder of erstwhile KRL has challenged the amalgamation before
 Delhi High Court, which is pending adjudication.
 
 4.  Impairment of Assets
 
 Determination as to whether and how much an asset is impaired involve
 Management estimates of highly uncertain matters such as international
 prices of crude oil and products, duty structure and Government
 policies. It is assumed that suitable mechanism would be in place, in
 line with earlier/ current year(s), to provide compensation towards
 under-recoveries of margin, if any, on account of sale of sensitive
 petroleum products in subsequent years. Hence, future cash flows have
 been worked out based on the desired margins for deciding on impairment
 of related Cash Generating Units. No impairment is therefore considered
 as at 31st March 2011.
 
 5.  The Cubject to confirmation. Adjustments, if any, arising therefrom
 are not likely to be material on settlement.
 
 6.  The Corporation changed its existing Employees'' Contributory
 Superannuation Scheme, from a Defined Benefit Scheme (DBS) into a
 Defined Contribution Scheme (DCS) applicable to all employees w.e.f.
 1.1.2007. The net shortfall of Rs 373.00 crores based on actuarial
 valuation in the DBS due to this changeover has been provided as a
 one-time contribution. Further, the Corporation has also provided Rs
 773.00 crores towards its liability to the DCS and fororporation has
 numerous transactions with other oil companies, which are reconciled on
 an ongoing basis and s pay-revision of non-management employees on an
 estimated basis.
 
 7.  Provision for taxation is computed, considering the liability
 provided during the year for the Superannuation Scheme as allowable
 expenditure. The Corporation is in the process of modifying the Scheme
 and there is reasonable certainty that approval would be obtained from
 tax authorities.  Provision for taxation also includes Rs 1.50 crores
 (previous year Rs 1.50 crores) towards wealth tax.
 
 9.  Disclosure as per requirements of Accounting Standard 15 -
 Employee Benefits :
 
 Gratuity: The Company has a defined benefit gratuity plan managed by a
 trust. The contribution based upon actuarial valuation is paid /payable
 to a trust which is invested as per investment pattern prescribed by
 the Government in plan assets. Gratuity is paid to the Staff member who
 has put in a minimum qualifying period of 5 years of continuous service
 on superannuation, resignation, termination or to his nominee on death.
 
 Leave Encashment: The Employees are entitled to accumulate Earned Leave
 and Sick Leave, which can be availed during the service period.
 Employees are also allowed to encash the accumulated earned leave
 during the service period. Further, the accumulated earned leave and
 sick leave can be encashed by the employees on superannuation,
 resignation, and termination or by nominee on death.
 
 Other Defined Benefits: These are (a) Post Retirement Medical Scheme
 benefit to employees, spouse, dependant children and dependent parents;
 (b) Pension/ex-gratia scheme to the retired employees who are entitled
 to receive the monthly pension / ex-gratia for life; (c) Death in
 service / Permanent disablement given to employee, the spouse of the
 employee, provided the deceased''s family/disabled employee deposits
 retirement dues such as P F, Gratuity, Leave encashment payable to them
 with the Corporation; and (d) Resettlement allowance paid to employees
 to permanently settle down at a place other than the location of last
 posting at the time of retirement.
 
 10. Related Party Disclosures as per Accounting Standard 18
 
 Names of the Related parties : 
 
 Indraprastha Gas Limited
 
 Petronet India Limited 
 
 Petronet CCK Limited 
 
 Petronet CI Limited
 
 Petronet LNG Limited 
 
 Bharat Oman Refineries Limited 
 
 Petroleum Infrastructure Limited 
 
 Petroleum India International 
 
 Maharashtra Natural Gas Limited 
 
 Central UP Gas Limited 
 
 Sabarmati Gas Limited 
 
 Bharat Stars Services Private Limited 
 
 Bharat Renewable Energy Limited 
 
 Matrix Bharat Marine Services Pte. Ltd.  
 
 Delhi Aviation Fuel Facility Private Limited 
 
 IBV Brasil Petroleo Ltda.
 
 Key Management Personnel : M/s. Ashok Sinha (Chairman & Managing
                             Director)
 
 (Whole time Directors)      up to 18th August, 2010.
 
                          S. Radhakrishnan (Director Marketing) 
                          up to 28th February 2011.  
                          Held Additional charge of Chairman & 
                          Managing Director from 19th August 2010
                          to 8th December 2010.
 
                          R.K. Singh (Chairman & Managing Director) 
                          w.e.f. 9th December,2010 and
                          prior to that he was Director (Refineries).
 
                          K.K. Gupta (Director Marketing) w.e.f. 
                          31st March,2011 
 
                          S. Mohan (Director Human Resources)
 
                          Sudhir K. Joshi (Director Finance) 
 
 Details of remuneration to Directors are given in note 20 of Notes to
 Accounts.
 
 11. Deferred Tax Liability
 
 As per the requirement of the Accounting Standard 22 - Accounting for
 Taxes on Income the net deferred tax liability debited during the year
 is Rs 148.24 crores (previous year net deferred tax asset credited Rs
 303.25 crores).
 
 12. Segment Reporting: The Corporation operates in a single segment -
 Refinery and Marketing activities, i.e, Downstream petroleum sector.
 Considering the nature of business and operation, there is no
 reportable segment (business and/or geographical) in accordance with
 the requirements of Accounting Standard 17.
 
 13.  Capital Commitments and Contingent Liabilities :
 
                                                    31/03/2010 
 
                                       Rs Crores        Rs Crores
 
 13.1 Capital Commitments : Estimated 
 amount of contracts remaining to
 be executed on capital account and 
 not provided for                         804.98       1,300.53
 
 13.2 Contingent Liabilities :
 
 (a) In respect of Income Tax matters      95.26          59.88
 
 (b) Other Matters : i) Surety bonds
 executed on behalf of other oil
 companies for excise/
 customs duties for which BPCL has 
 signed as surety                         183.45         195.30
 
 ii) Claims against the Corporation 
 not acknowledged as debts :
 
 (a) Excise and customs matters         1,242.94       1,190.86
 
 (b) Sales tax matters                  2,880.03       2,668.30
 
 (c) Others *                             322.36         263.12 
 
 These include Rs 1014.13 crores
 (previous year Rs 751.55 crores) 
 against which the Corporation has 
 a recourse for recovery and Rs 43.73 
 crores (previous year Rs 29.42 crores)
  on capital account.  * In respect 
 of lands acquired, land owners 
 have claimed higher compensation 
 before various Authorities / 
 Courts, which are yet to be 
 settled. The estimated contingent 
 liability of Rs 95.16 crores (previous 
 year Rs 54.63 crores) in such cases 
 is included above.  
 
 iii) Claims on account of wages, 
 bonus/ex-gratia payments in respect of
 pending court cases.                       6.15           4.55
 
 iv) Guarantees given on behalf of 
 Subsidiaries/JV''s                      4,408.77       3,700.43
 
 14.  18.1 Foreign Exchange losses amounting to Rs 205.31 crores
 (previous year Rs 37.42 crores) are regarded as adjustment to Interest
 cost and debited to Interest expenditure.  18.2 The deferred premium
 amounting to Rs 130.77 crores (previous year Rs 90.29 crores) in respect
 of for ward exchange contract will be recognised in the Profit & Loss
 Account of one or more subsequent accounting periods.
 
 15. Figures of the previous year have been regrouped wherever
 necessary, to conform to current year presentation.