Dear Members,
 
 On behalf of the Board of Directors, it is my privilege to present to
 you the 52nd Annual Report of the Corporation for the financial year
 ended 31st March 2011, alongwith the Audited Statement of Accounts,
 Auditors'' Report and the Report on the Accounts by the Comptroller &
 Auditor General of India.
 
 PERFORMANCE REVIEW
 
 FINANCIAL
 
                                 2010-11               2009-10
 
                            US$ 
                        Million   Rs. in crore        US$ 
                                                  Million  Rs. in crore
 
 Turnover                72,125       3,28,744     57,121      2,71,095
 (inclusive of Excise 
 Duty)
 
 Gross Profit             3,584         16,336      3,976        18,872
 
 (before Interest, 
 Depreciation and Tax)
 
 Interest Payment           586          2,673        321         1,526
 
 Depreciation             1,002          4,567        683         3,240
 
 Profit Before Tax        1,996          9,096      2,972        14,106
 
 Tax Provision              363          1,651        818         3,885
 
 Profit After Tax         1,633          7,445      2,154        10,221
 
 Balance Brought forward 
 from last year''s account     -              -      1,118         5,305
 
 Profit available for
 appropriation            1,633          7,445      3,272        15,526
 
 Appropriations
 
 Add:
 
 Insurance Reserve 
 utilised                     3             14          4            22
 
 Less:
 
 Proposed Dividend          506          2,307        665         3,156
 
 Corporate Dividend Tax      79            359        107           509
 
 Insurance Reserve            4             20          4            20
 
 Bond Redemption Reserve     22            101        (56)         (269)
 
 General Reserve          1,025          4,672      2,556        12,132
 
 Balance carried to 
 Balance Sheet              NIL            NIL        NIL           NIL
 
 PHYSICAL                               Million Metric Tonnes (MMT)
 
                                        2010-11         2009-10
 
 Refineries Throughput                    52.96           50.69
 
 Pipelines Throughput                     68.52           65.00
 
 Product Sales (incl. of Gas, 
 Petrochemicals & Exports)                72.92           69.92
 
 SHARE VALUE
 
                                      2010-11            2009-10
 
                                 US$      Rs.        US$       Rs.
 
 Cash Earning per share        1.09     49.47      1.17     55.44
 
 Earning per share             0.67     30.67      0.89     42.10
 
 Book value per share          5.00    227.90      4.64    208.21
 
 CHANGE IN AUTHORISED SHARE CAPITAL
 
 During the year, the Authorised Share Capital of the Corporation was
 increased from Rs. 2,500 crore to Rs. 6,000 crore with the approval of
 members by a Postal Ballot Process to enable the Corporation to raise
 finance through the issuance of shares in the future.
 
 DIVIDEND
 
 The Board of Directors of your Corporation is pleased to recommend a
 dividend of Rs. 9.50 per equity share of Rs.10/- each on the Paid-up Share
 Capital as against Rs.13/- per share in the previous year due to lower
 profits. So far, your Corporation has paid a cumulative dividend of
 Rs.18,575 crore, excluding a dividend of Rs. 2,307 crore payable for the
 current year, subject to the approval by shareholders.
 
 PUBLIC DEPOSIT SCHEME
 
 The Public Deposit Scheme, which was open only for employees and ex-
 employees of the Corporation, was closed with effect from 31st August
 2009. The total outstanding deposits were Rs. 55,000 as on 31.03.2011.
 
 CONTRIBUTION TO EXCHEQUER
 
 Your Corporation has been making enormous contributions to the
 Exchequer in the form of duties and taxes. During the year, Rs. 77,622
 crore was paid to the Exchequer as against Rs. 57,680 crore in the
 previous year. In the current year, Rs. 39,658 crore was paid to the
 Central Exchequer and Rs. 37,964 crore to the States Exchequer.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 In accordance with the Accounting Standards issued by the Institute of
 Chartered Accountants of India, your Corporation has prepared the
 Consolidated Financial Statements of its subsidiaries and joint venture
 entities. The highlights of the Consolidated Financial Results are as
 follows:
 
                                                (Rs.in crore)
 
                                           2010-11      2009-10
 
 Turnover (inclusive of Excise duty)      3,14,711     2,59,379
 
 Profit Before Tax                          10,114       15,049
 
 Profit for the Group (after tax)            7,831       10,713
 
 CORPORATE GOVERNANCE
 
 As stipulated under Clause-49 of the Listing Agreement with the Stock
 Exchanges, the Corporate Governance Report and Management''s Discussion
 & Analysis Report have been incorporated as separate sections, forming
 part of the Annual Report. Your Corporation also complies with the
 Corporate Governance guidelines, enunciated by the Department of Public
 Enterprises (DPE), Government of India applicable for Government
 Companies. IndianOil also complies with most of the provisions of the
 voluntary guidelines on Corporate Governance issued by Ministry of
 Corporate Affairs and would endeavour to comply with the other
 provisions that are within the domain of a Government Company.
 
 SECRETARIAL AUDIT
 
 Your Corporation has carried out a Secretarial Audit of its records and
 documents for the year 2010-11 as a Good Corporate Governance practice.
 The Secretarial Audit Report confirms that the Corporation has complied
 with all the applicable provisions of the Corporate Laws, guidelines,
 rules etc. The Report, duly certified by a practising Company
 Secretary, is provided in the Annual Report.
 
 CODE OF CONDUCT
 
 The Board has enunciated a code of conduct for the Directors and Senior
 Management Personnel of the Corporation, which has been circulated to
 all concerned and has also been hosted on the website of the
 Corporation. The Directors and Senior Management Personnel have
 affirmed compliance with the code of conduct as required under the
 Corporate Governance guidelines of Clause 49 of the Listing Agreement
 and DPE guidelines.
 
 OPERATIONAL PERFORMANCE
 
 Refineries
 
 During the year, IndianOil became the number one refiner in the country
 after the capacity expansion at Panipat Refinery (from 12 to 15 MMTPA),
 taking the group refining capacity to 65.7 MMTPA.
 
 IndianOil''s refineries achieved the highest ever crude throughput of
 52.96 million tonnes during the year, surpassing the previous best of
 51.37 million tonnes achieved in 2008-09. With an overall capacity
 utilisation of 102% for the year, your Corporation has been
 consistently maintaining a capacity utilisation of over 100%.  This has
 come in the wake of planned revamp shutdowns for implementation of
 quality upgradation project in all the refineries. The optimal
 operation of secondary units at all refineries, as well as minimizing
 downtime, has enabled refineries in achieving the highest combined
 distillate yield of 75.4 wt%.
 
 Pipelines
 
 IndianOil''s pipelines, the largest of its kind in Asia, registered an
 excellent performance during the year, recording a quantum leap in its
 operations with the highest ever throughput of 68.52 million tonnes of
 crude oil and petroleum products as against 65.00 million tonnes in the
 previous year. With the commissioning of new pipelines, the total
 network of product, crude and gas pipelines increased to 10,899 km
 during the year.
 
 Marketing
 
 We continue to leverage our distribution infrastructure to ensure that
 our leadership is maintained. During the year, IndianOil sold over 64.1
 million tonnes of petroleum products, which is an increase of 2.2
 million tonnes over the previous year, registering a 4% growth.
 IndianOil completed the switchover to BS-III & IV compliant
 transportation fuels across the country well before the deadline of 1st
 Oct. 2010. Your Corporation commissioned 900 new retail outlets,
 including 575 Kisan Seva Kendra (KSK) outlets during the year, taking
 the total tally to 19,463 Retail Outlets.
 
 During the year, your Corporation enrolled about 46.8 lakh new Indane
 LPG customers and commissioned 245 new Indane distributors taking their
 total to 618.3 lakh and 5,311 respectively. The LPG Bottling capacity
 was enhanced to 5,518 TMTPA with capacity addition of 326 TMT during
 the year. In order to provide LPG to rural India, your Corporation
 commissioned 145 distributors under the Rajiv Gandhi Gramin LPG Vitaran
 Yojana under the auspices of Ministry of Petroleum & Natural Gas. As a
 part of our CSR activity, 10,052 new connections were released to BPL
 families.
 
 Your Corporation achieved 4.2% growth (17 TMT) of finished lubes during
 the year 2010-11 with a growth of 6.9% in Retail lube and 2.8% in
 Institutional lube business over the previous year. 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 and Defence services.
 
 ASSAM OIL DIVISION/IBP
 
 The Digboi Refinery of Assam Oil Division (AOD) plays a vital role in
 ensuring the supply of petroleum products in east Assam. The refinery
 processed 0.65 million tonnes of crude oil during the year and sold
 about 1.2 million tonnes of products through its extensive network
 retaining our position as a market leader in the region.  Our IBP
 Division, which comprises of explosives and cryogenic businesses,
 earned a revenue of Rs. 182.72 crore during the year registering a growth
 of 13% over the previous year.
 
 RESEARCH & DEVELOPMENT
 
 IndianOil developed 132 new product formulations during the year, of
 which more than 85% were commercialised. During the year, 46 Original
 Equipment Manufacturers (OEMs) approvals and defence certifications
 were obtained.  Dual mode de-asphalting technology was developed to
 enhance Refinery Distillate Yield using LPG as a solvent. A multi-feed
 fluidized bed gasification pilot plant was commissioned to support
 research in the area of Gas to Liquid conversion. During the year, 12
 Patents were filed in India out of which two have been granted. In
 addition, two Patents in US, one in France and one in Russia were
 granted.  IndianOil''s Bio-remediation Technology – Oilivorous S was
 utilised for treating oil spills at marine locations caused by
 collision of ships off Mumbai coast.
 
 PROJECTS
 
 The timely execution of Projects is a priority for your Corporation and
 multifunctional teams constantly monitor them to prevent cost overruns.
 Our project teams have been ensuring that construction and
 commissioning of the projects are done seamlessly. Your Corporation''s
 project management expertise is widely acclaimed by the oil industry.
 The list of the various completed, ongoing and upcoming projects is as
 under:-
 
 Completed Projects
 
 - Capacity Augmentation of Panipat Refinery to 15 MMTPA.
 
 - Residue Upgradation & MS/HSD quality improvement project at Gujarat
 Refinery.
 
 - MSQ Improvement Projects at Guwahati, Barauni and Digboi Refineries.
 
 - Flare Gas Recovery facilities at Panipat and Gujarat Refineries.
 
 - Mathura- Bharatpur spur Pipeline.
 
 - Branch Pipeline to Hazira from Koyali- Dahej Pipeline.
 
 - Automation of various product storage terminals.
 
 - Automation of 300 Retail Outlets.
 
 Ongoing Projects
 
 - 15 MMTPA grassroot refinery at Paradip, Orissa.
 
 - Capacity Revamp of FCCU at Mathura from 1.3 to 1.5 MMTPA.
 
 - Coke chamber replacement & DCU modernisation at Guwahati Refinery.
 
 - Use of Natural Gas in balance four GTs at Panipat Refinery.
 
 - Installation of 6th Gas Turbine along with HRSG at Gujarat Refinery.
 
 - Butadiene Extraction Unit (BDEU) at Panipat Refinery.
 
 - Additional Sulphur Recovery Unit & Sulphur Pelletising Unit at
 Mathura Refinery.
 
 - MS Quality Improvement Project and Diesel Hydrotreater (DHDT) Project
 at Bongaigaon.
 
 - Augmentation of Chennai-Trichy-Madurai Pipeline.
 
 - Augmentation of Chennai-Bangalore Pipeline.
 
 - Construction of tanks and blending facility at Vadinar.
 
 - Branch pipeline from Viramgam to Kandla.
 
 - Paradip- Raipur- Ranchi Product Pipeline.
 
 - Debottlenecking of Salaya- Mathura Pipeline.
 
 - Integrated Crude Oil handling facilities at Paradip.
 
 - Paradip-Haldia-Durgapur LPG Pipeline.
 
 - Modernisation of Lube Blending plant and Lube Complex at Mumbai.
 
 - Additional tankage facilities at various storage locations.
 
 - LPG Marketing Terminal at Paradip.
 
 Upcoming Projects
 
 - Distillate Yield Improvement project at Haldia Refinery.
 
 - INDMAX project at Bongaigaon Refinery.
 
 - Mundra-Viramgam Crude Oil Pipeline.
 
 - Augmentation of Paradip- Haldia- Barauni Pipeline.
 
 - LPG Pipeline from Kandla to Panipat.
 
 - Augmentation of Salaya-Mathura Pipeline.
 
 EXPANDING BUSINESSES
 
 Your Corporation has a participating interest in 23 blocks which
 includes 13 domestic and 10 overseas blocks in Libya, Yemen, Nigeria,
 Iran, Gabon, Timor- Leste and Venezuela. The year marked a major step
 in efforts of your Corporation to build E&P operator capabilities as
 operator activities were initiated in Cambay blocks. In the Mahanadi
 offshore block, the commerciality of gas discovery made earlier was
 accepted by Director General of Hydrocarbons. During the year,
 formalities relating to the heavy oil project in Carabobo region of
 Venezuela were finalized with the execution of all contract documents
 and publishing of the Transfer Decree in the official gazette of
 Venezuela.
 
 The year saw the commencement of gas supplies to Panipat Refinery
 through the Corporation''s first gas pipeline between Dadri and Panipat,
 which was commissioned in July, 2010. In a bid to scale up its gas
 infrastructure, a 5 MMTPA LNG Import & Re-gassification Terminal
 Project has been planned at Ennore, Tamil
 
 Nadu. A consortium of IndianOil, GSPC, HPCL & BPCL emerged as a
 successful bidder for the three cross-country Gas Pipeline bids invited
 by the Petroleum & Natural Gas Regulatory Board (PNGRB).
 
 During the year, the total sales volume of Linear Alkyl Benzene (LAB)
 was 124 TMT, which includes domestic sales of 107 TMT and export sales
 of 17 TMT. LAB is now being exported to 20 countries in six continents.
 The LAB unit at Gujarat Refinery achieved a capacity utilization of
 105% during the year. Sale of 447 TMT of PTA was made to domestic
 customers, covering all major manufacturers of Polyester Film and PET.
 Aggressive strategies are in place to achieve a significant growth in
 sales in 2011-12.
 
 During the year, sales commenced from the Naphtha Cracker and
 downstream polymer units of Panipat Refinery for catering to domestic
 as well as international markets. Polymer sales of 217 TMT were
 achieved during the year including export of 8 TMT to eight countries.
 38 Del Credre Associates cum Consignment Stockists for the domestic
 market and 3 Overseas Commission Agents one each in Nepal, Pakistan and
 Bangladesh were appointed during the year for Polymer Marketing.  Your
 Corporation has become the largest supplier of Mono Ethylene Glycol
 (MEG) in the domestic market with a monthly supply ranging between
 16,000 – 22,000 MT. Glycols sales of 151 TMT was achieved during the
 year.
 
 During the year, IndianOil continued with its long standing Technical
 Services Agreement (TSA) and Manpower Secondment Agreement (MSA) with
 Emirates National Oil Company (ENOC). Under the TSA, IndianOil provided
 consultancy services for carrying out the de-bottlenecking feasibility
 study of LPG Amine Treatment and Regeneration facilities at ENOC''s
 condensate Refinery in Dubai.
 
 Exploring Energy Alternatives
 
 With the success of its first Wind power project of 21 MW in Gujarat,
 your Corporation is considering further investments in Wind power
 projects. During the year, the Corporation won a bid for setting up a 5
 MW Solar Photo Voltaic power plant in Rajasthan under the Jawaharlal
 Nehru National Solar Mission. IndianOil''s endeavour to provide green
 energy solutions in the rural areas through its vast rural Kisan Seva
 Kendra (KSK) network began in 2009 with the launch of Solar LED
 Lanterns. During the year, more than 30,000 solar lanterns were sold
 through its KSK outlets. During the year, a joint venture company was
 formed with Nuclear Power Corporation of India Ltd. (NPCIL) for setting
 up Nuclear power plants.
 
 Your Corporation has bio-diesel (Jatropha) plantation projects in three
 states, viz.  Chhattisgarh, Madhya Pradesh and Uttar Pradesh. Further,
 efforts are on for exploring second generation bio-fuels with the
 Corporation''s R&D Centre actively undertaking research on the
 production of second generation Bio-Diesel from Algae, in collaboration
 with International Research Agencies.
 
 Supply Chain Optimisation – Leveraging Information Technology
 
 Your Corporation imported 50.440 million tonnes of crude oil and 5.568
 million tonnes of petroleum products during the year, amounting to Rs.
 1,45,983 crore and Rs. 19,565 crore respectively, to meet its
 requirements through a carefully selected and diversified mix of supply
 sources. IndianOil also exported 4.988 million tonnes of petroleum and
 petrochemical products worth Rs.16,781 crore, during the year. In order
 to monitor day-to-day key parameters, a web based portal which provides
 vital information like stock position and prices of crude and products,
 marketing and pipelines operations was launched. Optimisation efforts
 helped in better planning, execution and taking corrective actions to
 maintain supply chain in an optimal manner, keeping corporate
 profitability under consideration. Your Corporation has commissioned a
 state-of-the-art Business Continuity Centre at Bengaluru which would
 ensure SAP service availability at all times.
 
 Human Resource
 
 The Corporation''s employee strength as on March 31, 2011 was 34,105
 including 14,497 officers. There are 2,637 women employees,
 constituting 7.73% of the total workforce. A Memorandum of Settlement
 (MoS) on pay revision for workmen was signed with all the 23 recognised
 unions on 29th July, 2010. The pay revision has been implemented for
 workmen in accordance with the policy of the Department of Public
 Enterprises (DPE).
 
 The industrial relations climate in the Corporation remained peaceful
 and cordial during the year. IndianOil has always supported a
 participative culture in its management through a consultative approach
 with the collectives by establishing harmonious relations. Your
 Corporation''s efforts to promote employees'' participation in various
 activities such as Collective bargaining, Suggestion Scheme, Quality
 Circles, Welfare, Total Productive Maintenance, Mentoring etc.  were
 continued during the year. IndianOil''s suggestion scheme has
 contributed immensely to productivity, profitability and safety as well
 as in many other areas of excellence across the organisation.
 
 In order to harness the full potential of human resources, IndianOil
 continues to align its HR strategy with the organisational strategy. An
 enterprise wide manpower study for the executives has been undertaken
 to carry out scientific workforce planning to establish norms for
 manpower positioning and developing a staffing dashboard for the
 executive''s future use. To strengthen our leadership pipeline and
 making our leaders future ready, a separate study on succession
 planning is under consideration. In order to improve the quality of
 talent at the entry level and to simplify the recruitment system, your
 Corporation had introduced the concept of utilising Graduate Aptitude
 Test in Engineering (GATE) score, which has proved successful.
 
 IndianOil Institute of Petroleum Management (IiPM), the apex learning
 institute, has planned and conducted new online programmes for
 non-finance Executives in financial management skills, in association
 with U-21 Global Universitas, Singapore and also on Sustainable
 Development including Energy Efficiency, Emission Mitigation etc.
 
 Your Corporation has been scrupulously following the Presidential
 Directives and other guidelines issued by the Ministry of Petroleum &
 Natural Gas and the DPE from time to time, regarding reservation in
 services for Scheduled Castes, Scheduled Tribes, Physically Challenged
 and OBCs. It has been the endeavour of your Corporation to utilise 25%
 of Community Development funds towards the Special Component Plan (SCP)
 and the Tribal Sub Plan (TSP), for meeting the needs of the weaker
 sections. The Presidential Directives and other guidelines issued by
 the Government of India with regard to reservation in services are
 meticulously followed by your Corporation. A report relating to
 representation of SCs/STs, in the prescribed proforma - SC/ST/OBC
 Report-I and SC/ST/OBC Report-II, is annexed.
 
 Your Corporation has been diligently implementing the provision of 3%
 reservation for physically challenged and disabled persons as per the
 Disabilities Act, 1995.  With the enactment of the above Act w.e.f.
 7.2.96, the reservation for Physically Handicapped persons has been
 extended to Group ''A'' and ''B'' posts as well. In compliance with the
 Official Language Act, 1963, Official Language Rules, 1976 and orders
 issued by the Government of India from time to time, efforts were
 continued during the year to enhance the progressive use of Hindi in
 official work.  The Official Language Implementation Committees
 functioning at IndianOil units regularly review the progress of
 implementation of official language policies and the annual programme
 as circulated by the Department of Official Language, Ministry of Home
 Affairs.
 
 Foreign Tours
 
 IndianOil officers undertook a total of 416 foreign tours during
 2010-11 for business purposes, including for attending conferences,
 seminars and training programmes. The total expenditure on foreign
 tours was X 6.80 crore.
 
 Vigilance
 
 In order to ensure maintenance of the highest level of integrity
 throughout the Corporation, the Vigilance group carries out preventive
 and punitive functions with greater emphasis on the preventive aspect.
 During the year, 49 Vigilance Awareness Programmes were conducted. A
 training programme on ‘Fostering Ethical Management through Vigilance''
 was organised on an all India basis.  A large number of joint surprise
 inspections were conducted, along with the oil industry, on the dealers
 / distributors network to check Quality & Quantity. Under the MoU with
 Transparency International, IndianOil is committed to implementing the
 Integrity Pact in all its major procurement activities to further
 enhance transparency in all its transactions.
 
 Partnering Social Progress
 
 Your Corporation is committed to global benchmarks in Corporate
 Governance, covering the full gamut of Sustainable Development, Safety
 and Conservation.  The Board of the Corporation had constituted a
 Committee of Directors for Corporate Social Responsibility, to monitor
 the overall functioning as well as guide and suggest improvements in
 our CSR activities in consonance with IndianOil''s Vision Statement and
 CSR Policy.
 
 Starting with community development programmes for SC/ST communities in
 the vicinity of our major installations, our Corporate Social
 Responsibility Programme has also grown towards a strategic alignment
 with the business goals as well as the sustainable growth of the
 Corporation. Your Corporation envisions a greater societal role in the
 future to accomplish the cherished goal of a truly developed India,
 where all sections of citizens live with dignity. Our strong commitment
 is reflected in our Corporate Social Responsibility policy, which
 allocates 2% of retained Profit of the previous year, towards Corporate
 Social Responsibility activities. IndianOil has provided common LPG
 kitchen facilities in villages and released grants to BPL families
 availing of new LPG connections, under the Rajiv Gandhi Gramin LPG
 Vitaran Yojana.
 
 During the year, the fund allocation towards IndianOil Educational
 Scholarships meant to benefit deserving poor students was increased
 from 450 to 2,600. The number of Sports Scholarships to promising young
 sportspersons has also been increased from 77 to 150 scholarships.
 IndianOil''s sportspersons continued to excel in national and
 international sporting events in various disciplines during the year.
 Three of our Scholarship players represented India in athletics in the
 Commonwealth Games 2010, Asian Games and Asian Junior Championship.
 
 The IndianOil Rural Mobile Healthcare Scheme has been developed on a
 pan-India basis to increase the reach of medical services in the rural
 areas. The scheme is proposed to be implemented through IndianOil''s
 Kisan Seva Kendras (KSKs) as a pilot project in Andhra Pradesh, Assam
 and Uttar Pradesh and will eventually cover all major KSKs.
 
 IndianOil responds proactively to provide aid and relief to the victims
 of natural calamities like floods, tsunami, earthquake, cyclones etc.
 IndianOil also contributes to national causes for the benefit of the
 nation like setting up educational institutions of national importance
 (Rajiv Gandhi Institute of Petroleum Technology), National Children''s
 Fund, Jansankhya Sthirtha Kosh etc.  During the year, IndianOil
 constructed 50 pre-fabricated houses for the rehabilitation of people
 affected due to a cloudburst on 5th & 6th August, 2010 in the Leh
 Valley.
 
 The IndianOil Foundation (IoF), a non-profit Trust, was formed to
 protect, preserve and promote National Heritage sites in collaboration
 with the Archaeological Survey of India, NGOs of repute (ASI) and the
 Nature Culture Fund (NCF) of the Government of India. Presently, the
 IoF has undertaken various projects for the development of tourist
 friendly facilities at Konark Sun Temple(Orissa), Khajuraho (Madhya
 Pradesh), Kanheri Caves (Maharashtra), Warangal Fort (Andhra Pradesh)
 and Vaishali (Bihar).  At Konark, the development of tourist friendly
 facilities like interpretation centre, main avenue, landscaping,
 parking etc. will be executed in due course.
 
 IndianOil continued to make a positive impact to the underprivileged
 communities in and around our major installations, by supporting a wide
 range of socio- economic initiatives, like providing Clean Drinking
 water, Health & Medical Care and Education. Our community development
 activities, in the vicinity of our major installations, are undertaken
 with a special emphasis on welfare of Scheduled Castes and Scheduled
 Tribes, under the Special Component Plan (SCP) and Tribal Sub-Plan
 (TSP) respectively. Some of the activities undertaken under the Tribal
 Sub-Plan include initiatives for non-formal education for tribals,
 providing infrastructure for schools in tribal areas etc.
 
 The fifth edition of our Sustainability Report for 2009-10, called
 Enduring Offerings, was published in the current year conforming to
 the Global Reporting Initiatives-G3 guidelines. During the year, a
 pilot environmental foot-printing exercise on Carbon, Water and Waste
 was carried out at seven representative locations of the Corporation.
 
 Your Corporation accords high priority to conduct business in a safe
 and environmentally sustainable manner to ensure incident free
 operations at its various units and locations. Audits for increased
 reliability and continuous improvement of safety, environment
 management, health and hygiene system were conducted during the year. A
 Committee of the Board on Health, Safety and Environment periodically
 reviews the HSE activities of the Corporation. Several capability
 building workshops and training programmes on safety topics were
 conducted at various levels. Rainwater harvesting schemes were
 implemented and extensive tree plantation was carried out at IndianOil
 installations across the country.
 
 Your Corporation continuously gives thrust on oil conservation at all
 of its refineries and other units, through extensive performance
 monitoring and keeping abreast with latest technological developments
 and best practices. As a result of various energy conservation measures
 undertaken, the energy index in terms of MBN* of IndianOil refineries
 during the year is down to 59, which is the best ever achieved, as
 against the energy index of 62 in the previous year. The Energy
 conservation schemes implemented during the year resulted in fuel
 savings to the tune of about 93,600 Standard Refinery Fuel Tonne (SRFT)
 per annum, valued at about Rs. 240 crore.
 
 *MBN–Thousand British Thermal Unit / Barrel / Energy Factor
 (MBTU/BBL/NRGF)
 
 Remuneration to the Auditors
 
 The Auditors'' remuneration for the year 2010-11 has been fixed at Rs.
 75.50 lakh plus applicable service tax. In addition to this, reasonable
 out-of-pocket expenses actually incurred are also reimbursable.
 
 Cost Audit Report
 
 In accordance with the directives of the Central Government, Cost
 Auditors were appointed for conducting a cost audit of IndianOil''s
 Refineries and Lube Blending Plants for the year 2010-11. The Cost
 Audit for the year 2009-10 was also carried out for the refineries and
 lube plants and the Cost Audit reports were filed by the Cost Auditors
 with the Central Government between 17th Sept. 2010 and 23rd Sept. 2010
 i.e.  within the prescribed time period of 180 days from the close of
 financial year 2009-10.
 
 Entertainment Expenses
 
 The entertainment expenses for the year 2010-11 were Rs. 2.34 crore as
 compared to X 2.23 crore last year.
 
 Subsidiaries
 
 The financial performance of following subsidiaries of the Corporation
 during 2010-11 is as under :-
 
                                                   (Rs. in crore)
 
 Subsidiary                        Total   Net Profit    Dividend
                                Turnover
 
 Chennai Petroleum
 Corporation Ltd.                 38,128         512        120%
 
 IndianOil (Mauritius) Ltd.          841          17          4%
 
 Lanka IOC Plc.                    2,090          35          -
 
 IOC Middle East FZE                  77           3         10%
 
 Report on Energy Conservation, Technology Absorption and Foreign
 Exchange Earnings
 
 In accordance with the Company''s (Disclosure of Particulars in the
 Report of Board of Directors) Rule, 1988, a report on Energy
 Conservation, Technology Absorption and Foreign Exchange earnings and
 outgo is annexed.
 
 Particulars of Employees
 
 The particulars of employees pursuant to Section 217(2A) of the
 Companies Act, 1956 and Rules framed thereunder are annexed.
 
 Board of Directors
 
 The following Directors ceased to be Directors on the Board of the
 Corporation consequent upon their superannuation / completion of term:
 
 - Shri V.C. Agrawal, Director (Human Resources) on 31.07.2010.
 
 - Shri B.M. Bansal, Chairman & Director(Plng.& BD) on 31.01.2011.
 
 - Shri S.V. Narasimhan, Chairman & Director (Finance) on 30.04.2011.
 The following Directors were appointed on the Board of the Corporation:
 
 - Dr. R.K. Malhotra, Director (Research & Development) w.e.f.
 05.08.2010
 
 - Shri Sudhir Bhalla, Director(Human Resources) w.e.f. 27.10.2010
 
 - Shri R.S. Butola, Chairman w.e.f. 28.02.2011
 
 - Shri A.M.K. Sinha, Director (Planning & Business Development) w.e.f.
 16.03.2011
 
 - Shri P. K. Goyal, Director (Finance) w.e.f. 02.05.2011.
 
 - Shri Sudhakar Rao, Independent Director w.e.f. 30.05.2011.
 
 Directors'' Responsibility Statement
 
 Pursuant to the requirement under the new Section 217(2AA) of the
 Companies Act, 1956 with respect to Directors'' Responsibility
 Statement, it is hereby confirmed:
 
 (i) that in the preparation of the annual accounts for the financial
 year ended 31st March 2011, all applicable accounting standards have
 been followed along with proper explanations relating to material
 departures;
 
 (ii) that the Directors had selected such accounting policies and
 applied them consistently and made judgements and estimates that were
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end of the financial year and of the
 profit or loss of the Company for the year under review;
 
 (iii) that the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956, for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 (iv) that the Directors had prepared the accounts for the financial
 year ended 31st March, 2011 on a ‘going concern'' basis.
 
 ACKNOWLEDGEMENTS
 
 The Board of Directors places on record its deep appreciation of the
 valuable services and dedicated efforts of the members of the IndianOil
 family in the Corporation''s achievements during the year 2010-11. The
 Board also wishes to thank the Government of India, particularly the
 Ministry of Petroleum & Natural Gas, and the various State Governments,
 regulatory and statutory authorities for their valuable guidance and
 support. The Board is also grateful to the Corporation''s bankers,
 investors, customers, consultants, technology licensors, contractors
 and vendors for their continued support and confidence reposed in the
 Corporation.  The Board wishes to place on record its appreciation for
 the commendable performance and significant contribution made by Shri
 B.M. Bansal, Shri S.V.  Narasimhan and Shri V.C. Agrawal during their
 tenure on the Board.
 
                                     For and on behalf of the Board
 
 Place : New Delhi                                     (R.S. Butola)
 
 Date : 03-08-2011                                         Chairman