Directors Report of Oil And Natural Gas Corporation Ltd.

Mar 31, 2023

On behalf of the Board of Directors of your Company, it is my pleasure to present the 30^th Annual Report of Oil And Natural Gas Corporation Limited (ONGC/ the Company) and its Audited Financial Statements for the year ended 31 March 2023 (FY’23), together with the Auditors’ Report and Comments on the Financial Statements by the Comptroller and Auditor General (CAG) of India.

After three tumultuous years, the pandemic’s and geopolitical disruptions’ extensive effects are finally showing tapering signs coupled with slow recovery in the world economy. Strong economic growth has been apparent and inflation appears to have decreased in a number of nations, largely as a result of the implementation of strict monetary policies. On the other hand, the evolving energy challenges are complex and include not only natural gas but also oil, coal, electricity, food security, and climate change. It appears that constant unpredictability and potential volatility continue to characterize the oil and gas industry.

Your Company has been working to improve the value proposition for all stakeholders while maintaining the pace of capital spending and project execution, sustaining production, and cost-optimizing operations. The country’s expanding energy needs can be met while also generating value for all our stakeholders if we consolidate from here and continue to grow sustainably.

Your Company, along with its group companies, has registered yet another year of robust performance and made substantial progress on most of the priority areas.

Your Company’s standalone production during FY’23 was 40.212 Million Metric Tonnes of oil and oil equivalent gas (MMTOE) (against FY’22 production of 40.453 MMTOE).

Highlights of production during FY’23 are as under:

•    Crude oil production, including share of JV production, was 21.485 Million Metric Tonnes (MMT) during FY’23 against 21.707 MMT during FY’22.

•    Natural gas production, including share of JV production, was at 21.351 Billion Cubic Metres (BCM) during FY’23 against 21.680 BCM during FY’22.

 

• Value Added Products (VAPs) production during FY’23 was 2.598 MMT against 3.089 MMT during FY’22.

Backed by an intensive and continuous exploration programme, your Company declared eight oil and gas discoveries (five on-land and three offshore) during FY’23.

During FY’23, accreted 40.62 MMTOE of 2P reserves from ONGC operated areas in India. Reserve Replacement Ratio (RRR) from domestic fields was 1.01 with respect to 2P reserves. Your Company has maintained Reserve Replacement Ratio (2P) of more than 1 for the 17^th consecutive year.

Your Company has four direct subsidiaries, namely ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL), Hindustan Petroleum Corporation Limited (HPCL) and Petronet MHB Limited (PMHBL).

Your Company also has nine Associates/ Joint Ventures, namely ONGC Petro additions Limited (OPaL), ONGC Tripura Power Company Limited (OTPC), ONGC TERI Biotech Limited (OTBL), Dahej SEZ Limited (DSL), Mangalore SEZ Limited (MSEZL), Indradhanush Gas Grid Limited (IGGL), Pawan Hans Limited (PHL), Petronet LNG Limited (PLL) and Rohini Heliport Limited (RHL).

1. Major Highlights of FY’23

i.    Revenue from operations in FY’23 stood at '1,555,173 Million against '1,103,454 Million in FY’22.

ii.    Net profit in FY’23 was '388,289 Million against '403,057 Million during FY’22 mainly due to higher realisation on Crude Oil, Natural Gas and VAPs which was partly offset by exceptional item amounting to '92,351 Million during FY’23.

iii.    Your Company has notified 8 new hydrocarbon discoveries (3 New Prospects & 5 New Pool discoveries) in its operated acreages including one discovery in OALP block, 1 in NELP block and 6 discoveries in nomination blocks.

iv.    Three hydrocarbon discoveries (Mandapeta-60, Kesanapalli West Deep-7 & Hatipoti-1), notified during the FY’23 with cumulative 2P reserves (EUR) of 0.244 MMTOE were monetized during the year itself.

v.    Your Company has notified first prospect discovery “Amrit” (MBS171HAA-1) in OALP Block MB-OSHP-2017/1 awarded under OALP-I bid round in Mumbai Offshore.

vi.    One exploratory well has been drilled during FY’23

for exploration of new Mesozoic Play in Cambay Basin.

vii.    During the year, with an objective to consolidate and realize reserves from unconventional reservoirs, completed the drilling of 4 High Pressure High Temperature (HP-HT) wells spreading over KG Basin (02 wells) and Mumbai Offshore (02 wells) and 3 wells with Basement Play as an objective - One each in Cambay Basin, Assam Shelf and Mumbai Offshore (SW).

viii.    During the year, 85 exploratory wells were drilled, out of which, 54 wells were concluded and from concluded wells, 30 wells were proved to be hydrocarbon bearing. Besides 23 wells of previous years were concluded out of which 16 wells proved to be hydrocarbon bearing.

ix.    Success ratio in exploratory drilling achieved considering total wells tested/concluded including those of previous year’s wells was 1:1.67 (59.74%) -(Total 77 wells concluded out of which 46 wells were proved to be hydrocarbon bearing).

x.    A total of 809.58 LKM of 2D and 13696.49 SKM of 3D seismic was acquired during FY’23. Out of this quantum, a total of 658.83 LKM 2D and 10,959.85 SKM of 3D seismic data was acquired in Open Acreage Licensing Policy (OALP) blocks.

xi.    An airborne DHI technique (Airborne Hydrocarbon Sensing System “AHSS”) based on measurement of micro-seepages concentration to de-risk existing prospects and prioritize exploration areas, has been inducted for the first time in India in A&AA Basin. The survey started on 20 January 2023 and completed on 6 February 2023 in Baramura & Barjala Areas of Tripura covering an area of about 1,488 SKM.

xii.    Six contract areas awarded to ONGC under DSF-III. Three of these are located in western offshore (2 in N&H, 1 in MH), while three are in Eastern Offshore.

xiii.    Your Company incurred '5,698.46 Million on Research & Development activities and another '4,108.65 Million on various innovative initiatives during FY’23. These initiatives resulted in improved operational efficiencies and cost optimization for your Company.

xiv.    During FY’23, 14 Patents and 01 Copyright were granted to your Company by the Intellectual Property India, Government of India.

xv.    Great Place to Work: ONGC was recognized as one of the best employers in India among other nation-builders by the Great Place to Work (GPTW) on 14 June 2022. The Energy Maharatna also featured on GPTW’s ‘Wall of Fame’ for its commitment to maintaining the energy security of the nation.

xvi.    Best Employer Award: ONGC was conferred with the prestigious ‘Best Employer Award’ at the North India Best Employer & HR Leadership Excellence Awards organized by World HRD Congress on 22 December 2022.

2.    Global Recognitions

Your Company has been recognized at various national and international forums, list of Awards and Accolades is annexed as Annexure - A.

3.    Details of discoveries

During the year, your Company has notified eight new discoveries in acreages operated by it.

Details of exploratory efforts made by your Company were as under:

 

Sr. No	Basin/Block	Discovery well	Acreage	Discovery Type	Hydrocarbon Type
1	KG Onland	Mandapetta-60 (MSDL)	Mandapeta PML	Pool	Gas
2	KG Onland	Malleswaram-22 (MSAD)	Malleswaram PML	Pool	Gas
3	KG Onland	Karugorumilli-1 (KML-AA)	Godavari Onland PML (7 Year)	Pool	Gas
4	Bengal Onland	Kankpul-1 (WBON5-4-NA-E)	NELP: WB-ONN-2005/4	Prospect	Gas
5	KG Offshore	Kesanapalli West Deep-7 (KWD-AC)	Vainateyam PML	Pool	Oil & Gas
6	KG Offshore	GS-15-22 (GS-15-AU)	Vainateyam PML	Pool	Gas
7	Assam Shelf	Hatipoti-1 (NGAE)	Mekeypore-Santak-Nazira PML	Prospect	Oil & Gas
8	Mumbai Offshore (SW)	MBS171HAA-1 (MBS171HAA-A) “Amrit”	OALP: MB-OSHP-2017/1	Prospect	Gas

Out of eight new discoveries made during the financial year, three discoveries viz. Mandapetta-60, Kesanapalli West Deep-7 and Hatipoti-1 were monetized. Gain from discoveries monetized during FY’23 was 0.03 MMTOE.

4. Reserve Accretion and Reserve Position

During FY’23, accreted 40.62 MMTOE of 2P reserves from ONGC operated areas in India Reserve Replacement Ratio (RRR) from domestic fields was 1.01 with respect to 2P reserves. The position of 2P Reserve established as on 01 April 2023 by ONGC in its operated areas and in non-operated (JV share) was as follows:

Position of Reserves as on 01 April 2023 (MMTOE)
As per PRMS1#	Category	Company Operated	JV Operated	Total
Reserves	2P	716.09	13.74	729.83
1#PRMS: Petroleum Resource Management System. ONGC adopted PRMS w.e.f. 1 April 2019.

5. Award of Blocks/New Acreages taken for Exploration

During the year, Revenue Sharing Contracts (RSC) for 21 OALP Bocks (18 OALP-VI & 3 OALP-VII) covering total of area 43,493.94 Sq.km. were executed on 27 April 2022 and 28 June 2022 respectively.

Currently, all the awarded OALP blocks are in exploratory phase. As on 01April 2023, a total 3706.49 LKM of 2D seismic data and 19929.26 SKM of 3D seismic data has been acquired and two exploratory wells drilled in OALP Blocks.

Additionally, Revenue Sharing Contracts (RSC) for 6 DSF Contract Areas, measuring 2,656.14 Sq.km. and 2 CBM blocks measuring 1,506.89 Sq.km. area under Special CBM Bid Round-2021 (SCBM 2021) were executed. As a result of the above total New Acreages taken for exploration during the year was 47,657 SKM.

6. EOR Proposals

Your Company has been consistently expanding its Enhanced Oil Recovery (EOR) portfolio. Under the Enhanced Recovery (ER) policy, fields of ONGC located in onshore and offshore areas were considered for screening. 33 ER Pilots/Preliminary Screening reports submitted to DGH till date for Oil Fields. 17 ER Pilots already approved (Phase-I), 3 are not approved and 11 Under Approval (Phase-II). 2 ER Pilots notified to DGH (Gandhar GS-9 Miscible CO₂ injection, Gandhar GS-11 Miscible CO₂ injection) are under feasibility study. During the year ONGC’s offshore asset MH executed 1 EOR pilot low salinity water injection and Onshore assets Ahmedabad executed Sanand ASP pilot and Mehsana executed Nandasan Polymer, Bechraji commercial polymer & North Kadi surfactant pilot EOR.

7. Major Projects Completed During the FY’23 following 5 major projects with an investment value of around '81,182 Million were completed:
Sl. No	Project Name	Completion Date	Actual Cost (' Million)
1	Redevelopment of Nandasan Field- Mehsana Asset	22.11.2022	4,277
2	Gas compressor Project at Ankleshwar Asset (GCP-ANK)	31.03.2023	1,194
3	Mumbai High South Redevelopment Phase-IV (MHSRD-IV)	08.05.2022	36,396
4	Cluster-8 Development Project	31.12.2022	23,590
5	WO-16 Cluster Development Project(MOPU)	23.12.2022	15,725

8.    CAPEX

During the year, total capital expenditure of your company including its subsidiaries was '476,408 Million (comprising ONGC - '302,084 Million, HPCL - '140,840 Million, OVL - '27,232 Million and MRPL - '6,252 Million).

9.    Drilling of Wells

Your Company drilled 461 wells during FY’23 against 434 wells drilled during FY’22. 85 of these wells were exploratory wells, while the balance 376 wells were development wells including side-track wells. Land Acquisition (LAQ) issues in Coal Bed Methane, Bokaro (CBM) and Karaikal impacted the drilling activities of your Company. The major highlights of Drilling operations during the year were as under:

•    The overall exploratory and development cycle speed and commercial speed stood at 1013 M/RM and 1611

M/RM respectively. The cycle speed achieved during the year is highest ever since inception (Previous best: 997 M/RM during the year 2017-18) whereas commercial speed stood at 2^nd best since inception (Previous best: 1,616 M/RM during the year 2017-18).

•    Well #NGAE_SBS (Exp.) (TD 4,179 m) was drilled in 111 days against plan of 122 days with commercial

speed of 1,145 M/RM. Well #NGAE_SBS (Exp.) (TD 4179 m) was drilled in 111 days against plan of 122 days with commercial speed of 1,145 M/RM. During testing the exploratory object (BCS-1 object) yielded an average production of 125 m³/d of Oil and 29,502 SCMD Gas with less than 1% water cut. However the well was completed in object-IV (BCS-3). The success of this well in Hatipoti field gives a new lead for exploration and realization of YTF potential.

•    Successfully tested exploratory well no. Hatta#03 in Son Valley of MP (Vindhyan Basin) and established commercial gas presence in India’s 9^th Commercial Hydrocarbon Basin. Well flowed gas @ 62,044 m³/d thru 6 mm bean at FTHP -1700 psi, CHP - 1800 psi. ¹

10. Oil, Gas & VAP Production

Details of production, sales quantity and VAPs product wise during FY’23 (inclusive of JV Share) in comparison of FY’22 were as under:

Description	Unit	Production Qty		Sales Qty		Value (' in Million)
		FY'23	FY'22	FY'23	FY'22	FY'23	FY'22
Crude Oil	(MMT)	21.49	21.71	19.19	20.29	1,030,076	836,612
Natural Gas	(BCM)	21.35	21.68	16.68	16.75	374,168	124,414
Value Added Products (VAPs)
Liquefied Petroleum Gas	000 MT	883	882	884	883	55,543	46,752
Naphtha	000 MT	932	932	921	964	49,614	50,640
Ethane-Propane	000 MT	119	315	119	315	4,909	9,078
Ethane	000 MT	281	499	281	500	13,311	10,815
Propane	000 MT	150	199	147	197	8,713	10,637
Butane	000 MT	81	116	81	116	4,668	6,185
Superior Kerosene Oil & MTO	000 MT	9	23	3	23	263	1,086
Others1	000 MT	143	123	80	62	6,276	3,404
Sub Total (VAP)	000 MT	2,598	3,089	2,516	3,060	143,297	138,597
Total	Â	Â	Â	Â	Â	15,47,541	10,99,623
*Others include ATF, LSHS and HSD

11.    Production from Overseas Assets - ONGC Videsh Ltd.

Your Company’s overseas E&P operations are carried out through its wholly owned subsidiary, ONGC Videsh Limited (OVL), which in turn conducts its operations either directly or through its subsidiaries. Production from the overseas assets during FY’23 was 10.171 MMTOE in comparison to 12.330 MMTOE during FY’22. Oil production during FY’23 was 6.349 MMT as compared to 8.099 MMT during FY’22 and Gas production during FY’23 was 3.822 BCM as compared to FY’22 production of 4.231 BCM. Key factors affecting overseas production included natural decline, Russia-Ukraine conflict leading to declaration of Force Majeure with effect from 21 April 2022 in Sakhalin-1 project, FPSO shutdown in BC-10; expiry of Nare Association Contract in MECL Colombia with effect from 4 November 2021; heavy floods in GPOC South Sudan; and Block 06.1 Vietnam project nearing end of field life.

12.    Other Exploration Initiatives/Activities

a) Acquisition of 2D Seismic Data for appraising offshore area up to EEZ:

Your Company was entrusted as nodal agency for EEZ survey under Government-funded program

(To appraise the unapprised offshore areas upto Exclusive Economic Zone - EEZ), a total of 70,000 LKM of state-of-the-art 2D high fidelity broadband seismic data (API) has been planned to be acquired in three sectors namely West Coast, East Coast and Andaman offshore. The initial target was subsequently revised to acquiring 82,353 LKM of seismic data. Against that revised target of 82,353 LKM, as on 1 April 2023, a total of 65,271.55 LKM of 2D seismic data has been acquired by ONGC, which was 80% of the total target.

b)    Basement Exploration:

As a part of concerted exploration efforts for Basement Play, a total of 3 wells having basement as an objective were drilled, this includes Padra-168 in Cambay Basin, Tengahola-1 in Assam Shelf and BH-87 in Mumbai offshore. The well Padra-168 proved hydrocarbon bearing in Basement.

c)    HP-HT Exploration:

High Pressure - High Temperature (HP-HT) and Tight reservoirs have been an exploration and development challenge for your Company. Your Company is striving hard in the field of HP-HT due to bore hole complications, fluid design, high-cost drilling technology including HP-HT cementing,

well construction and other reservoir engineering issues. In ONGC operated areas, HP-HT regime is encountered in areas like Periyakudi, Bhuvanagiri in Cauvery Onland, Kottalanka, Nagyalanka, Bantumilli South and Malleswaram in KG Onland. Yanam in KG Shallow offshore, G-4-6, D-33 and GS-OSN-2004/1 in Western Offshore were also classified as HP-HT reservoirs. Additionally, high pressure regime is often encountered in certain areas of Assam Arakan Fold Belt.

During FY’23, eight exploratory HP-HT wells namely Bantumilli South-5, South Penumadam-1 & North Veeravasaram-1 in KG Onland, Baramura-37 in AAFB, Tripura, GS-71-3 & GS-21-4 in KG Offshore (SW), MBS171HAA-1 and D-33-9 in Mumbai Offshore were taken up for drilling. Well MBS171HAA-1 in Mumbai offshore OALP block was found to be gas bearing and notified as new prospect discovery. Well GS-21-4 also proved gas bearing.

13. Exploration and Production from Unconventional Sources

a)    Coal Bed Methane (CBM):

Your Company was awarded 9 blocks in CBM bidding rounds including nomination, out of which it has relinquished 5 blocks on the basis of data generated from exploratory efforts and has been operating 4 blocks (Jharia, Bokaro and North Karanpura in Jharkhand and Raniganj in West Bengal) where exploration activities have been completed. Developmental activities are at an advanced stage in three of these blocks viz. Bokaro, Jharia and North Karanpura.

Recently, in the Special CBM Bid Round 2021, ONGC has been awarded two CBM Blocks i.e. BP-ONHP(CBM)-2021/2 in Rajmahal Coalfield of Jharkhand and SR-ONHP (CBM)-2021/5 in Sohagpur Coalfield of Madhya Pradesh.

b)    Gas Hydrate Exploration Program

Your Company has been an active contributor to gas hydrate exploratory research under the National Gas Hydrate Program (NGHP) of Government of India. ONGC has played a significant role in G&G studies for the identification of sites for NGHP-01 and NGHP-02. After the success of the NGHP-02 expedition, ONGC has set up a dedicated R&D institute for Gas hydrate study at Panvel.

During FY’23, your Company obtained 3 patents in the field of gas hydrates and published research papers in reputed journals and conferences. Gas

hydrate R&D team carried out projects to identify gas hydrate prospects in Mahanadi and Cauvery offshore, performed simulation studies for gas hydrate production and developed in-house machine learning based software-HYDRATEMIND for prediction of gas hydrate zones.

Your Company has MoUs with Skolkovo Institute of Science and Technology (Skoltech), Moscow, and IOCL for gas hydrate R&D studies.

14. Drilling Services

There has been continuous induction of new technologies in Drilling Services. Some of these new technologies, which are now being used extensively are:

a)    Casing While Drilling: In view of safety prospect in 30” conductor piling issues and further drilling for 20” casing, implemented Casing While Drilling (CWD) in six wells of Mumbai on pilot basis. The technology has proven to be a safer and faster for vertical exploratory wells, achieved using casing as drill string for both phases. It turned out to be solution for surface seepage losses and associated complications for initial well phases.

b)    Auto-Driller: Automatic bit feeding system (eWildcat TM 2.0) implemented in 5 drilling rigs (Type-II & above rigs of ONGC) for one year on pilot basis results in enhancement of the drilling efficiency.

c)    Liner While Drilling: Under the Pilot project, out of planned 4 wells, 2 wells Trident-XII (SN#8Y), GD Chitra (HSD#4Z) have been completed using Liner While Drilling Technology in 8 %’’ phase. The technology has provided benefit in drilling through unstable (shale) formation and further through depleted reservoir in same drilling phase, facilitating simultaneous liner casing and cementation of drilled sections without any issues. Technology has proven for minimising formation damage due to drilling fluid loss management.

d)    Mechanical Pipe Cutter (MPC) and Echo meter:

Introduction of wire-line MPC tools reduces the side track preparation time for the wells producing through depleted reservoir. It allows to cut the completion string in under balance condition after adjudging the liquid level in well bore. This resulted in reducing the time for curing the losses and further damaging the reservoir.

e)    Under Reamer services: It allows to mitigate the well bore complications and enhance the hole cleaning in High Angle/ ERD wells in larger hole

sizes. Drilling through the multi-layered formation, sailing at hi angle and sustain the well bore stability is a challenge to reach the desired subsurface target. Under reamer services used on recently wells in 12 %” hole where sailing angle was 81 deg. Hole was enlarged to 13” and observed excellent hole clean-up and elimination of back reaming. This is planned to be used in 6” section wherein losses are prominent and ECD plays an important role enlarging the hole to 7”, thereby helping in cased well bore with 5” liner and cementation.

f)    RTDMA for the Rig performance evaluation:

Real time monitoring and benchmarking the drilling different activities captured by Real Time Data Management and Analytics (RTDMA) leads to evaluate the performance of each ONGC hired and owned rigs. It results in creating the sensitive, responsible and enhanced working culture among the crew rig providers and service providers. It also creates the alert on operations deviations.

g)    Oriented Coring: To enhance the understanding on the orientation of sedimentation and its fractures, recently a core was taken in the exploratory well at well bore angle of 60 deg.

h)    Drilling Fluid for depleted reservoir: In house developed drilling fluids like Energised Micro Bubble System (EMBS) and Mixed Metal Oxide (MMO) for the highly depleted reservoir are used in recently for the multi-layered reservoir. It reduces the Non Productive Time (NPT) for the loss control time.

i)    Under Balance Drilling is a tool for drilling through depleted reservoir with real reservoir assessment. Implementation in the drilling of drain hole section in 7 wells of Neelam Heera Asset under progress.

j)    Introduced new technology of anchoring i.e. Midline Buoy System for floater for deployment of anchor moored rigs in complicated subsea architecture fields.

15. Infrastructure Up-gradation:

Your Company is in the process of up-gradation of existing resources with State-of-Art equipment to remain competitive in the global E&P business. It has already taken actions to refurbish, upgrade and replace its Onshore/Offshore drilling rigs, Workover rigs, Cementing units, Crisis Management equipment in phases. Major Infrastructure Up-gradations during the year were as under: ²

During FY’23 another four new generation hi-tech drilling were commissioned (7 rigs commissioned till 31 March 2023) and 2 more rigs were commissioned during Apr-May 2023.

•    5 Rigs out of 20 Automated Hydraulic Workover rigs were commissioned at Mehsana, Ahmedabad, Assam, Ankleshwar and Agartala.

•    Acquisition of new 36 new Well Stimulation units in progress.

16. Information Technology

Your Company has carried out several Business

Process improvements in the field of IT in FY’23.

Major Process improvements were as follows:

•    A state-of-the-art Network Operation Centre (NOC) has been established for 24X7 monitoring, analysis and response against any unwarranted activity on ONGC Enterprise Network. The NOC functions have been very ably augmented with latest Network Access Control (NAC) tools for maintaining a “Zero Trust Network Architecture (ZTNA)” and new generation firewalls on the Network periphery to further strengthen the cyber security posture of ONGC network & information systems.

•    Enterprise Production SCADA Upgrade Project successfully completed on 30 April 2022 covering 146 Tier-1 locations, 1.7 lakh sensor tags. Production SCADA upgrade covering all onshore & offshore installations with optimised architecture is completed. The Production SCADA system is upgraded to provide analytical capabilities using industry-standard OSI PISoft software.

•    ONGC’s SAP-ECC ERP Systems successfully upgraded to latest SAP-S/4 HANA digital platform having faster in-memory computing for improved system performance and advanced data analytics features.

•    “Common Analytics Platform” project completed on 30 January 2023. This system will provide a common platform for cross-domain Analytics.

•    As a part of Data Center Consolidation, Disaster Recovery Data Centre (DRDC) successfully migrated and shifted enterprise e-mail DR from Mumbai to Vadodara on 23 March 2023. Data center consolidation and migration is targeted towards physically consolidating Corporate Infocom & ICE Data centers for achieving operational efficiencies

within ONGC’s IT landscape and to actively reduce the resources that data center needs.

•    Communication to Sagar Samrat, converted from a Jack-up Rig to a MOPU (Mobile Offshore Production Unit) - ONGC’s jewel crown, bolstered with the commissioning of High Throughput Satellite (HTS) connectivity, for the first time in offshore.

17. Financial Highlights:

Your Company earned Profit After Tax (PAT) of

'388,289 Million, down by 3.66% over FY’22 (?403,057

Million) mainly due to exceptional item amounting to

'92,351 Million in FY’23 and registered Revenue from

Operations of '1,555,173 Million, up by 40.94% over

FY’22 C1,103,454 Million).

Highlights - Standalone Financial Statements

• Revenue from Operations    : '1,555,173 Million

•    Profit After Tax    : '388,289    Million

•    Contribution to Exchequer    : '746,402    Million

•    Return on Capital Employed    : 38.79%

•    Debt-Equity Ratio    : 0.03:1

•    Earnings/ Share    : '30.86

•    Book Value/ Share    : '205 ³

Particulars	' in Million
	2022-23	2021-22
Revenue from operations	1,555,173	1,103,454
Other Income	76,266	65,156
Total Revenue	1,631,439	1,168,610
Profit Before Interest Depreciation & Tax (PBIDT)	791,252	609,456
Profit Before Exceptional items and Tax (PBT)	596,304	410,400
Exceptional items2 -Income/ (expenses)	(92,351)	-
Profit Before Tax (PBT)	503,953	410,400
Profit After Tax	388,289	403,057
Transfer to General Reserves	212,164	288,576

for the period from 1 April 2016 to 31 March 2022 together with interest thereon up to 31 March 2023 towards the ST/GST on Royalty and disclosed being an exceptional and material item.

Further, a similar provision of '28,723 Million was also made during the quarter and year ended 31 March 2023 for disputed taxes for the financial year 2022-23.

The above adjustments have adversely impacted the profitability for FY’23. However, the Company shall continue to contest such disputed matters before various forums based on the legal opinion as per which the Service Tax/GST on Royalty in respect Crude oil and Natural gas is not applicable.

18.    Change in Share Capital:

During the year under review, there is no change in capital structure of the Company.

19.    Dividend

Your Company has paid interim dividend of '6.75 per share of '5 each (@135%) in November 2022 amounting to '84,917 Million and '4.00 per share of '5 each (@80%) in February 2023 amounting to '50,321 Million. The Board of Directors has recommended final dividend of '0.50 per share of '5 each (@10%) amounting to '6,290 Million subject to approval of shareholders. The total dividend pay-out for FY’23 would be '141,528 Million with pay-out ratio of 36.45%.

The Dividend Distribution policy may be accessed at the web link: https://www.ongcindia.com/wps/wcm/ connect/en/investors/policies.

20.    Financial Accounting and Secretarial Standards

The Financial Statements of the Company for FY’23 have been prepared in compliance with the applicable provisions of the Companies Act, 2013 including Indian Accounting Standards (Ind AS) and Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

Secretarial Standards:

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

21.    Loans, Guarantees or Investments

Your Company is engaged in Exploration & Production

(E&P) business which is covered under the exemption provided under Section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investments made or guarantee or security given by the Company to subsidiaries and associates were not reported.

22. Deposits:

Your Company has not accepted any deposit during

 

the year. Further, there was no outstanding deposit and/or unpaid or unclaimed principal amount or interest against any deposit either at the beginning or at the end of FY’23.

23. Credit Rating of Securities:

Details of the Credit Ratings of Debt Securities of the Company as on 31 March 2023:

24.    Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placed in the Corporate Governance Report, which forms part of the Annual Report.

25.    Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section 188 of the Companies Act, 2013 is provided in specified form AOC-2, annexed as Annexure - B.

26.    Subsidiaries:A. ONGC Videsh Limited

ONGC Videsh Ltd, the wholly-owned subsidiary of your Company for carrying out E&P activities outside India, has participation in 32 oil and gas projects spread accross 15 countries. ONGC Videsh portfolio comprises of 14 producing, 4 discovered/ under development, 11 exploration and 3 pipeline projects. ONGC Videsh is Operating 16 of the 32 projects, solely or in association with partners.

Gross consolidated revenue of ONGC Videsh for FY’23 was '116,763 Million (against '173,220 Million during FY’22) and the PAT attributable to owners registered was '17,003 Million during FY’23 as against '15,892 Million during FY’22

Significant events in the area of Exploration & Operations:

a.    CPO-5 Block:

The Block ended FY’23 with JV production levels of 19,000 barrels of oil per day (bopd), making it a significant drill bit success for the company. Drilling of 6 wells was also completed successfully during the year. Two Development wells Indico-6 & Indico-7 have been drilled during FY’23 and will be brought on production after approval of surface facilities by the Colombian regulator.

b.    Lower Zakum Concession:

In FY’23, average JV production rate was about 388,000 bopd. The project envisages production of 450K bopd by 2025 and 520K bopd by 2028. To evacuate the gas, execution of 34” subsea New Main Gas Line (85km) project is underway and expected to be commissioned by Dec’2024.

c.    ACG Azerbaijan:

During FY’23, average JV, oil production rate was about 404,000 bopd and gas production rate was about 9 MMSCMD. A total of 16 Wells viz. 11 Producers, 4 Water Injectors & 1 Non-Associated Gas (NAG), were completed in the year. Construction of Azeri Central East (ACE) New Platform with 48 slots, at Capital Cost of USD 3.3 Billion was 86% complete as on Mar’23. The platform will cater to Incremental oil production of 300 MMBBLS till end of contracts in 2049. First oil from the ACE platform is expected by March’24.

d.    GPOC/SPOC South Sudan:

Average JV, oil production rate for FY’23 was about 37,000 bopd. Drilling of Infill wells commenced in Nov 2022 and results were encouraging. Out of the 4 wells drilled, 2 wells were producing 1,900 bopd and the remaining 2 wells were under completion. The project has received 2 years extension for exploration period of blocks 1, 2 and 4 effective from 26 February 2023.

e.    BM-SEAL-4 Brazil:

Development Plan (DP) and Production Individualization Agreement (AIP) have been submitted to the Regulator (ANP) on 1 November 2022. The Operator has commenced the bidding process for shared FPSO and development activities to meet the target of first oil & gas in calendar year 2028.

f.    Sakhalin-1 Project

The year commenced with Sakhalin-1 JV producing about 210,000 bopd in accordance with the planned production profile. However, following the Russia-Ukraine conflict, erstwhile Operator ENL started production curtailment and declared Force Majeure on 21 April 2022. Production was altogether stopped in September 2022. On 7 October 2022, President of Russian Federation (RF) issued Decree and RF Government issued Resolution dated 12 October 2022, transferring all rights & obligations of Sakhalin-1 Consortium to a newly formed entity; Sakhalin-1 LLC. As required by the decree, ONGC Videsh submitted its notice of consent to retain its stake in the project on 8 November 2022. The Government of Russian Federation, approved for ONGC Videsh to retain its existing participating interest in the project, subject to fulfilling obligations towards the transfer of accumulated abandonment funds to Sakhalin-1 LLC’s current account.

As of 31 March 2023, the project production levels

were back to normal levels of approx. 200K bopd and drilling activities have also resumed. Furthermore, ONGC Videsh has received the accumulated Abandonment Funds in its account at SBI, GIFT City, Gandhinagar, India on 5 April 2023 to further comply with the said condition precedent.

g.    Rovuma Area-1:

Following deterioration of security situation in Palma district since March 2021, the Operator evacuated all personnel from the site and subsequently, on 11 May 2021, declared Force Majeure (FM). Recently, the operator has reported alignment of understanding with Government of Mozambique (GoM) on security matters while acknowledging significant improvement in security situation and believes if the progress continues in the same trajectory, restart of project activities is possible in near future. In anticipation of the restart, the Area 1 consortium has already commenced some preparatory works at the project site.

h.    Myanmar A1 & A3

Average JV, gas production rate of the project for FY’23 was about 15 MMSCMD. Phase II Development of the projects was successfully completed in Aug 2022 and production from additional 7 wells was started, with this the Project is expected to maintain production of contracted quantity of 500 MMSCFD till 2026 or early 2027.

i.    Vietnam Block 06.1

Average JV, gas production rate for FY’23 was about 4 MMSCMD. Although the block is nearing its end of life and production from the block has fallen substantially, the Consortium with an objective to continue production from the existing fields and to explore the clastic areas, applied for extension of the Production Sharing Contract (PSC). The host Government has granted 16 years extension of the PSC, with effect from 19 May 2023.

B. Hindustan Petroleum Corporation Limited (HPCL)

Your Company held 54.90% equity shares in HPCL on 31 March 2023 and HPCL is a Schedule ‘A’, Maharatna, and listed entity operating for 100 years with Pan India presence. Government of India had transferred its 51.1% equity in HPCL to ONGC in 2018. HPCL owns and operates 2 major refineries -one at Mumbai (9.5 Million metric tonnes per annum - MMTPA) and the other one at Visakhapatnam (8.3

MMTPA). HPCL has 19.14% domestic market share in petroleum products. It also owns and operates the largest Lube Refinery in the country with a capacity of 428 TMT (thousand metric tonne). HPCL has a vast marketing network of Supply & Distribution infrastructure comprising of Terminals, Installations, Tap-off Points, LPG Bottling Plants, Aviation Service Facilities, Lube Blending plants, Lube depots and various customer touchpoints across the country. HPCL has its Research & Development Centre named ‘HP Green R&D Centre’ in Bengaluru.

During FY’23, HPCL refineries at Mumbai and Visakhapatnam achieved combined refining thruput of 19.09 MMT. HPCL achieved highest ever sales volume of 43.45 MMT compared to previous year’s sales of 39.14 MMT. During the year, HPCL crossed a key milestone of 21,000 Retail Outlets with commissioning of 1,161 Retail outlets during FY’23 taking the total Retail Outlets to 21,186. Further, 40 new LPG distributorships were commissioned during the year taking the total number of distributors to 6,283 as of 31 March 2023.

The combined Gross Refining Margin (GRM) for HPCL Refineries for FY’23 worked out to USD 12.09 / bbl compared to USD 7.19 /bbl in the corresponding previous year.

HPCL had 21,186 retail outlets, 17 cross country pipelines covered length of 5,132 kms (making HPCL second largest Petroleum product pipeline Company in India), 55 LPG plants, 6,283 LPG distributors; 43 Petroleum, Oil & Lubricants (POL) terminals & 72 POL depot, 1387 CNG dispensing station, 54 aviation services facilities; 2037 EV charging facilities as on FY’23.

During FY’23, HPCL recorded Loss After Tax of '89,740 Million as compared to Profit After Tax of '63,826 Million for the previous year. Revenue from operations for the FY’23 was '4,661,924 Million as compared to '3,738,967 Million during the previous year.

C. Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company held 71.63 % equity shares in MRPL, a Schedule ‘A’ Mini Ratna company and listed entity, which is a single location 15 MMTPA Refinery. Further, HPCL, also holds 16.95% equity shares in MRPL.

MRPL’s refinery is established with a versatile design with complex secondary processing units and a high flexibility to process Crudes of various API, delivering

a variety of quality products. Refining Net throughput of MRPL during FY’23 increased by almost 13.8 % to 17.14 MMT against 15.05 MMT during FY’22.

In FY’23, GRM for MRPL was USD 9.88 /bbl against USD 8.60/ bbl during FY’22. During the year the company has added 31 Retail Outlets making total retail outlets to 63 as on 31 March 2023.

In a remarkable turnaround, MRPL registered a standalone turnover of '1,247,360 Million (?860,944 Million in FY’22) and recorded profit of '26,384 Million (against Profit of '29,553 Million in FY’22) during FY’23.

D.    Petronet MHB Ltd (PMHBL)

Your Company, together with its subsidiary HPCL, hold equity shares of 49.996% each in PMHBL. With your Company’s holding of 54.9% in HPCL, the extent of its holding in PMHBL comes to 77.44% and makes PHMBL a subsidiary of ONGC. PMHBL owns and operates Mangalore - Hassan - Bengaluru JV pipeline (362.3 Km) to transport MRPL’s petroleum products to various parts of Karnataka State.

PMHBL achieved a thruput of 3.894 MMT in FY’23 against 2.841 MMT in FY’22 and reported total income of '1,683 Million in FY’23 (Tl,282 Million in FY’22) and recorded a net profit (PAT) of '847 Million in FY’23 C603 Million in FY’22).

Associates and Joint Ventures:-

E.    ONGC Petro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ and incorporated in 2006 for utilizing inhouse production of C2-C3 and Naphtha from Hazira and Uran units of your Company. Your Company, GAIL and GSPC held 49.36%, 49.21% and 1.43% of equity shares of OPaL respectively on 31 March 2023.

Company has successfully completed its first major turnaround (MTA) in FY’23. During FY’23, Revenue from operations of OPaL was '145,930 Million C160,475 Million in FY’22) and posted loss of '41,555 Million against loss of '5,347 Million in FY’22.

F.    ONGC Tripura Power Company Limited (OTPC)

OTPC was incorporated in 2004 as a joint venture of your Company. Your Company held 50% of its shares as on 31 March 2023.

OTPC has a 726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura with two generating units with equal capacity. The basic objective of

the project is to monetize idle gas assets of your Company in landlocked Tripura State and to boost exploratory efforts in the region.

Average Plant load factor for FY’23 was about 77% against 64% in FY’22 and power generation increased from 4,124 Million Units (MU) in FY’22 to 4,741 MU in FY’23.

Revenue from operations during FY’23 was '16,315 Million C12,640 Million in FY’22) and Profit After Tax (PAT) was ' 2,011 Million during FY’23 C1,066 Million during FY’22). OTPC has declared total dividend of '1.30 Per share in FY’23 including proposed final dividend of '0.60 per share.

G.    ONGC TERI Biotech Limited (OTBL)

OTBL is a JV incorporated in 2007 by your Company (49.98%) along with The Energy Research Institute (TERI) (48.02%) and the remaining 2% shares are held by individuals. OTBL has developed various Biotechnical Solutions for oil and gas Industry through collaborative researches involving the Company and TERI. The company has paid maiden dividend @ 10% of the paid up share capital, amounting to '25 Million during the FY’23.

Revenue from operations of OTBL during FY’23 was '370 Million ('188 Million in FY’22) and Profit After Tax (PAT) was '192 Million during FY’23 C86 Million during FY’22).

H.    Dahej SEZ Limited (DSL)

DSL, a 50:50 JV of your Company along with Gujarat Industrial Development Corporation (GIDC), was incorporated in 2004 for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as a value-chain integration project in this SEZ, which serves as feeder unit to OPaL, JV of your Company.

Revenue from Operations of DSL during FY’23 was '757 Million (provisional) against '666 Million in FY’22 (audited) and PAT was '381 Million during FY’23 (provisional) against '470 Million (audited) during FY’22.

I.    Mangalore SEZ Limited (MSEZL)

MSEZ is a JV, under Special Economic Zone and was promoted by your Company with an equity stake of 26%. MSEZ, was incorporated in 2006 for development of necessary infrastructure to facilitate and locate industrial establishments. MSEZ is operational since April 2015.

 

Revenue from operations of MSEZ during FY’23 was '2,036 Million (?1,924 Million in FY'22) and Profit After Tax of '72 Million during FY’23 (Net loss of '199 Million during FY’22).

J.    Pawan Hans Limited (PHL)

PHL, is an Associate of the Company, with 49% holdings, and the Government of India holding remaining 51%. PHL was formed primarily for catering to the logistic requirements of offshore and other remote area oil fields. PHL is a Mini Ratna-I Category PSU, having a fleet of 43 helicopters.

K.    Petronet LNG Limited (PLL)

Petronet LNG Limited (PLL), an associate of your Company, which was incorporated in 1998 with 12.50% equity holding along with identical stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL, is a listed Company. PLL, the largest company in the country in supply of LNG, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. While the plant at Dahej terminal has 17.5 MMTPA capacity, the Kochi terminal has capacity of 5 MMTPA.

During FY’23, PLL recorded revenue from operations of '598,994 Million and Profit After Tax (PAT) of '32,399 Million. PLL paid a special dividend of '7 per share and has proposed a final dividend of '3.00 per share for FY’23.

L.    Indradhanush Gas Grid Limited (IGGL)

Your Company has subscribed 20% equity capital in IGGL, a JV company promoted by your company in association with IOCL, GAIL, OIL and NRL. IGGL was incorporated in 2018 for the purpose of laying 1,656 KM pipeline covering north-east states with a capex of '92,650 Million. MoPNG has approved Viability Gap Funding (VGF) of '55,590 Million which is 60% of the project cost. Surveying, ROU acquisition and Pipeline laying in various sections is under progress. Physical progress of 70.01% has been achieved till 31 March 2023 with a cumulative financial expenditure of '42,186 Million.

M.    Rohini Heliport Limited (RHL):

Your Company has subscribed 49% equity capital in Rohini Heliport Limited with Government of India’s stake as 51%, RHL is a mirror company of Pawan Hans Limited, incorporated in 2019 for enabling disinvestment of PHL.

N. Companies Which Have become/ ceased to be Company’s Subsidiaries, Joint Ventures And Associates Companies during FY’23

a)    Companies which has become subsidiaries: NIL.

b)    Companies which has ceased to be subsidiaries: NIL.

c)    Companies which has become a joint venture or associate: NIL.

d)    Companies which has ceased to be a joint venture or associate: NIL

27.    Make in India

To promote “Atmanirbhar Bharat”, ONGC has introduced Development Order Policy in December 2020 for goods and services after delinking it from routine tender process to make the process easier and continuous. The policy enables vendor to offer product at any point of time.

ONGC has been able to localize 18 products through 23 successful development orders, another 14 products/services are in development by 16 Indian manufacturers.

28.    ONGC Start-Up Initiative

‘ONGC Start-up Fund’, conceptualized in line with the ‘Start-up India’ initiative, launched by the Hon’ble Prime Minister of India, was established to foster, nurture and incubate new ideas related to energy sector. The Fund supports and promotes an ecosystem in the Energy Sector for entrepreneurship among the younger Indians.

ONGC Start-Up Fund supported 23 start-ups with applications in energy sector. The financial commitment to these Start-Ups was '757.70 Million as on 31 March 2023.

29.    Procurement through Government e-Marketplace (GeM)

In line with directives of Government of India, your Company has been making all efforts to enhance procurement of goods and sevices through GeM portal. During FY’23 ONGC’s total procurement through GeM was '71,783.70 Million. ONGC ‘s efforts were also recognised by Ministry of Commerce during “GeM Kreta Vikreta Samman Samaroh 2023” wherein ONGC was awarded Gold buyer award under Highest Service procurement category for FY’23.

30. Facilitation for payment of invoices through TReDS Portal

In line with the initiatives of Government of India, your Company is registered on TReDS platform with M/s RXIL, M/s MYND Solution (M1xchange) and M/s A TREDS Ltd. (Invoice Mart), to help MSME vendors get immediate access to liquid fund based on Buyers (i.e. ONGC’s) credit rating by discounting MSMEs trade receivables through an auction mechanism where multiple financers can participate and bid. MSME vendors can avail this benefit by registering themselves with any of the exchanges providing e-discounting/ electronic factoring services on TReDS platform where ONGC is also participating in such TReDS Platform as a Buyer. Such exchanges with participation of ONGC are being notified from time to time.

The details of invoices discounted through TReDS system during FY’23 were as under:

Name of TReDS Platform	No. of Invoices discounted through TReDS	Value of invoices discounted (' in Million)
MYND Solution (Mlxchange)	77	401.60
RXIL	22	37.80
A TREDS Ltd. (Invoice Mart)	Nil	Nil

31. Health, Safety and Environment (HSE)

ONGC accords topmost priority to the Health, Safety and Environment (HSE) management by carrying out its operations ensuring zero harm to the people and the environment. Operations of ONGC, mainly exploration and production activities, are highly hazardous and risky. HSE in ONGC’s operations is guided by HSE Policy and HSE management system. In addition there is also dedicated Environment Policy and e-waste policy.

ONGC, in order to maintain highest standards, goes beyond the Regulatory requirements and practices proactive HSE Management System. The HSEMS is based on International Standards, ISO 9001, ISO 45001 and ISO 14001.

HSE Initiatives:

a) Compliance to HSE management systems, as well as to prevalent rules, regulations, guidelines and standards is checked during internal audits, being conducted by multi-disciplinary teams of the Company. The same are also checked by external authorities like Oil Industry Safety Directorate (OISD) and Directorate General of Mines Safety (DGMS).

i.    Multi-disciplinary Teams conducted 293 Internal Safety Audits (ISAs) in 2022-23. The overall compliance status of ISA observations as on 31 March 2023 was 93.43 per cent.

ii.    OISD, conducted audits at 110 Installations in 202223. The overall compliance status of the observations raised by OISD as on 31 March 2023 was 87.54 per cent.

iii.    DGMS, carried out inspections at 164 Installations in 2022-23. The overall compliance status for the contraventions raised by DGMS as on 31 March 2023 was 96.87 per cent.

b) An expert consultant was engaged by ONGC to carry out gap analysis of existing systems and practices of ONGC and assist in improving safety culture. To further strengthen the Safety culture of the organization Project ‘Parivartan’ is being implemented across the organization. Under Project ‘Parivartan’ the following 10 Strategic HSE Goals have been finalized:-

•    Achieve culture of leadership excellence with an average score of 90% for the leadership process by 2025;

•    Significantly improving management system culture by achieving average safety rating 7 out of 10 across all installations by 2025;

•    Transformation of prevailing Bureaucratic System Culture to a Learning Organization Culture by 2027;

•    Building Risk Competency based on Training Needs Analysis by 2025;

•    Ensure Total Safety of the asset through a systematic implementation of Asset Integrity Management by 2027;

•    Ensure Risk based Contractor Management System is fully embedded into the Project Management by 2023;

•    Sustain and / or improve on Loss Time Injury Frequency Rate Loss Time Injury Frequency Rate (LTIFR) by achieving result better than an average Industry Rate by 2027;

•    Design, Create and Implement Safety Management System Benchmarking (Internal & External) by 2025;

•    Resorting to Green initiatives for Zero Emission Pathway in backdrop of climate crisis and Fasttracking of Forest clearances through adopting

proactive approach; and

• Elimination and mitigation of occupation related health impacts and introduction of new initiatives for health improvement.

These strategic goals are being implemented through Syndicates, consisting of Key Executives and Senior HSE officials. The progress is reviewed by Higher Management at regular basis to ensure time bound achievement of the targets.

c)    During FY’23, 18,995 mock drills were conducted, including 18,971 ERP (Emergency Response Plan), 16 Onsite DMP (Disaster Management Plan), 6 Offsite DMP and 2 RCP (Regional Contingency Plan) mock drills.

d)    Mines Vocational Training (MVT), a mandatory training as per Mines Act, is being imparted to both employees and contract personnel through inhouse training centres. MVT was provided to 3,218 personnel (1,110 Company Employees and 2,108 Contract Personnel) in 2022-23.

e)    The Near Miss reporting and timely closure is being emphasized through advisories, awareness programs and competency building exercises. Monthly Near Miss Analysis and Reports are being issued for sensitization and actions in this regard. In order to further encourage the work centres to report the Near Miss in SAP and close them by taking required action, best performers are being recognized.

f)    Every quarter, Safety Champion and Safe Installation awards are being declared by Assets/ Plants/ Basins and the winners are being duly recognized as motivation for commendable safety performance by all.

g)    Implemented SAP based E-PTW (Electronic Permit to Work) which maintains system based checks & balances, eliminates possibility of bypass of procedures and creates trail of documentation for data analysis.

h)    HSE Benchmarking of all ONGC installations has been done on various HSE parameters in SAP by designing a HSE Index.

i)    The processes of Management of Change (MoC) has been streamlined and SAP based MoC module has been developed for ensuring adherence to MoC procedures.

j)    To address any unsafe act or unsafe condition, Stop Card program has been implemented which

empowers any personnel to use Stop Card to stop a work if it is noticed that the risk associated with any job is unattended or a person is doing work in unsafe manner. The system enables immediate action on the risk through prompt actions.

k)    Corporate Disaster Management Plan (CDMP) has been revised, incorporating DMP-2020 of MoPNG, NDMP-2019, MoPNG guidelines on COVID-19 & cyclone Tauktae and High Level Committee’s recommendations on cyclone Tauktae.

l)    Dedicated webinars and workshops are being conducted through online platforms, covering ONGC and contract personnel, on specific HSE topics through domain experts.

m)    In order to enable the workforce to readily access the HSE related information, guidelines, standards, manuals, documents, circulars etc., on their fingertips, a dedicated HSE website and App has been introduced. The same is accessible anytime to all ONGC employees posted at various work centers.

n)    Environmental Clearances: ONGC received 18 Environment Clearances (ECs) for drilling of 106 exploratory wells, 115 development wells and construction of 1 production facility.

o)    Waste Management

i.    Waste Water Management: ONGC monitors the waste water usage and maintains the quality of effluent discharged conforming to statutory requirements specified for discharge of treated effluent at surface/ subsurface. The Company has 41 number of Effluent Treatment Plants across onshore work centres to treat approx. 1,04,000 m3/day of waste water produced during E&P operations. For Offshore effluent treatment, Produced Water Conditioners (PWCs) have been installed at process platforms. Sewage Treatment Plants for treatment of sewage water generated are also provided at offshore facilities.

ii.    Hazardous Waste Management: The Hazardous Waste generated in the form of oily sludge/oil contaminated soil are treated using bio-remediation technique in which oil eating consortium of bacteria is used to break down hazardous substances into nontoxic substances, thereby ensuring environmentally safe disposal of waste. It is ensured that the Total Petroleum Hydrocarbon (TPH) of the treated oily sludge is less than 0.5% (5000 ppm) in consonance with the Hazardous and Other Wastes (Management and Trans-boundary Movement) Rules, 2016. During 2022-23, 93,151 Metric Tons of oily sludge/oil

contaminated soil has been bio-remediated.

iii. Recovery from Waste: During the process of restoration of oil spillage area, about 6,523 m³Â of Oil has been recovered from the oil contaminated soil during 2022-23 which was sent back to the production installations.

p)    A project for conservation of bio-diversity which aims to plant mangroves in an area of 10 ha and protection of the Endangered Olive Ridley Turtle in the Karaikal District of Puducherry has been taken up. The project commenced in August 2022 with various activities planned in 3 years duration.

q)    Oil Spill Management in Offshore operations:

ONGC is having a robust oil spill management system to address oil spills ranging from minor to significant volumes. The Indian Coast Guard (ICG) is designated as a central coordinating authority by the Government of India for combating oil spills in Indian waters and undertaking oil spill prevention and control. As per the National Oil Spill Disaster Contingency Plan (NOS-DCP) promulgated by ICG, ONGC is maintaining its own Tier-I oil spill response equipment and manpower onboard multi-support vessels in its operational area. For Tier-II level oil spill, ONGC is relying on Indian Coast Guard and ONGC’s mutual aid partners and for Tier-III oil spill, ONGC is maintaining participant membership of Oil Spill Response Limited (OSRL), UK, through which ONGC is having guaranteed response and access to OSRL’s worldwide resources comprising of Booms, Skimmers, Oil Spill Dispersants stockpile, storage equipment, specialized manpower etc. ONGC has a MoU for oil spill response co-operation with Mumbai Port Trust, Jawaharlal Nehru Port Trust and Participating Oil Companies for maintaining Tier-I oil spill response facility & services in Mumbai Harbour.

In addition, ONGC has also developed its own oil spill contingency plan to deal with oil spill incidents and eventualities. ONGC conducts internal oil spill mock drills and also participates in regional and national level mock drills organized by the Indian Navy and Indian Coast Guard. Annual returns on preparedness for oil spill response is being filed annually to ICG.

32. Carbon Management and Sustainable Development

Sustainable Development is the standard template in the Company and this finds expression in our commitment to continually enhance the benchmarks of economic, environmental and social performance.

The major endeavours towards corporate sustainability were as under:

Clean Development Mechanism (CDM):

Your Company had 15 CDM projects registered with the United Nations Framework Convention on Climate Change (UNFCCC) under the Kyoto protocol since 2006.

ONGC is also continuing the Verification/Renewal of existing CDM projects as well as finding opportunities for Registration of new CDM projects.

Greenhouse Gas (GHG) Accounting and Mitigation:

ONGC aims to reduce GHG emissions by focusing on improved energy efficiency. The scope-1 and scope-2 emissions during FY’23 was 8.897 MMTCO₂e a reduction of about 2.66% from the previous year.

Global Methane Initiative (GMI):

The GMI is an action-oriented initiative from United States Environment Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. During FY’23 leak detection survey was carried out in Hazira and Uran plant.

Solar and Wind energy initiatives:

The total installed capacity of renewable energy as on 31 March 2023 was 189.52 MW (Solar: 36.52 MW and Wind: 153 MW).

Replacement of conventional lights with LED lighting:

In line with the Government of India’s call for promoting efficient energy use (Ujala Scheme), ONGC entered in to a MoU with Energy Efficiency Services Limited (EESL) for replacement of all conventional lights in ONGC in a phased manner. However, incandescent lamps, tube lights and CFLs were immediately replaced. During FY’23, ONGC installed 4,344 LED lights making a total of 355,344 LED lights installed so far.

Carbon Capture, Storage and Utilisation (CCSU)

Carbon Capture, Storage and Utilization (CCSU) is a critical CO₂ emission abatement technology that can prevent large quantities of CO₂ from being released into the atmosphere. Considering its benefits, ONGC entered into a MoU with Indian Oil Corporation Limited

(IOCL) for CO₂ based Enhanced Oil Recovery (EOR). Under this initiative, the CO₂ captured from the IOCL’s Koyali refinery will be utilized for EOR in the depleting oil fields of ONGC in Gandhar field, near Vadodara. The project has the potential for sequestrating 5 to 6 Million TCO₂ by the year 2040.

33.    Internal Financial Control System:

Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information commensurate with the operations of the Company. Effectiveness of Internal Financial Controls is ensured through management reviews, self-assessment and independent testing by the Internal Audit Team indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls are operating effectively. The Audit Committee/ Board reviews the Internal Financial Controls to ensure its effectiveness for achieving the intended purpose. Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is placed along with the Financial Statements.

34.    Conservation of Energy, Technology Absorption and Foreign Exchange earnings & Outgo:

The information as required under section 134(3) (m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure-C.

35.    Business Responsibility and Sustainability Report

Business Responsibility and Sustainability Report (BRSR) is annexed as Annexure-D and forms part of the Board’s Report.

36.    Management Discussion and Analysis Report

As per regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Management Discussion and Analysis Report (MDAR) forms part of this Report.

37.    Corporate Governance

A report on Corporate Governance as stipulated under Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and also on DPE Guidelines on Corporate Governance, 2010 forms part of the Annual Report.

38.    Human Resource Development

Employees are our most valuable resource driving the Company to unparalleled excellence in the energy business. As a strategic business partner, your Company’s HR practices are in alignment with its vision to be global leader in the integrated energy business. Our HR vision is to build and nurture a world class human capital for leadership in energy business, by continuously innovating and adopting best-in-class HR practices to support business leaders through engaged, empowered and enthused employees.

As on 31 March 2023, there were 25,993 employees on the rolls of ONGC. Your Company empowers these dedicated energy soldiers through its HR strategies focused on workforce planning, talent acquisition, performance management, learning & development, career growth, succession planning, leadership development and on enhancing employee experience and engagement by extending best of employee facilities, welfare benefits and work environment.

Capacity building of strong workforce of 25,993, to cater to both current and future work requirements is a major thrust area. The challenging and transitioning E&P business environment calls for accelerated development of employee knowledge, skills and competencies. Your Company therefore, has dedicated Institutes providing focused and relevant learning & development opportunities to employees. With a view to build a leadership pipeline and providing healthy balance of both academic and field exposure to its energy professionals, ONGC has tied up with a number of national & internationals institutions, agencies and business schools. During FY’23, 19,846 executives and 5,506 non-executives were imparted training in relevant domains, spanning 66,806 executive and 13,764 non-executive training days.

Learning Management System: During the year, ONGC Academy, on-boarded Learning Management Software of Ministry of E&IT and National Programme on Technology Enhanced Learning (NPTEL) developed by seven Indian Institutes of Technology,

with the objective of enhancing knowledge and skills of executives. Various components of the system have been successfully tested and rolled out.

Leadership Development: Your Company has structured and strategic learning and development initiatives focused at nurturing the right technical and managerial abilities at all executive levels to build energy leaders of tomorrow.

Harvard Manage Mentor program is one such initiative being offered to 3,100 executives, involving self-paced, anywhere anytime learning, assessments and real time personal guidance. The program covers E2 to E4 level executives under the buckets Managing Yourself, E5 to E6 - Managing others & E7 & above under Managing the Business.

Employee Engagement: In FY’23, ONGC implemented a gamut of employee engagement activities to promote a culture of open communication, trust, sense of belonging, team spirit, innovation and excellence. Some highlights are as follows:

i.    A 2-day Youth Meet was organized in August 2022, to bring together about 250 young officers from different work centres in a live and energetic physical setup for experiencing, first-hand, the ONGC corporate ethos. During the 2019 -21, all new joinees underwent virtual on-boarding on account of the pandemic restrictions. This Youth Meet allowed them to initiate organizational friendships, expand social network and improve batch camaraderie. The youth meet created an opportunity for the new joinees to interact with ONGC Executive Committee, hear leadership perspectives and understand their Company’s journey, energy transition, corporate strategies and its national impact. The Youth Meet saw a confluence of young ideas emerge through power packed discussions with top management. The event included a series of competitions, live Energy and Business Management Quiz, Youth Executive Committee meeting and interactions with national youth icons such as Virender Sehwag and Chetan Bhagat.

ii.    In ONGC the formal mentoring initiative was

introduced in 2008. ONGC management reintroduced the mentoring framework in 2021 with a perspective to create an informal social learning opportunity that allowed for knowledge transfer, professional and personal development of young officers who joined the organization during the pandemic outbreak. In FY’23 approximately 650 new mentors and around 600 mentees have been initiated into the mentoring

program. The mentee and mentors are also being given mentoring handbooks to capture their discoveries, reflections and document their learnings.

iii.    With a focus on connecting with the younger generation, more than 30 People Connect Sessions were conducted across work centres for improved engagement & interaction of key executives and seniors with work teams.

iv.    Annual ONGC Business Games was successfully conducted to hone competencies such as strategic thinking, business acumen, entrepreneurial learning, decision making, critical thinking and collaboration in a competitive scenario under simulated business constraints. During FY’23, a total of 217 teams and 868 executives participated in these games.

v.    Fun Team Games were also conducted for E0 and below level employees as a capacity building and employee engagement initiative to enhance coordination, cooperation, communication, planning, result orientation, mental/physical dexterity among the participants, wherein more than 380 nos. of employees participated in the event.

vi.    A special executive presence program was

conducted for senior level executives. The program was held over a four-week duration, in a hybrid module combining both in-person sessions and online learning sessions on LMS. The program focused on the journey of personal transformation that reflects in a person’s brand and the high intrinsic value that he/ she adds to the organization through their presence, knowledge and individual contribution.

Digitization of HR Processes: In line with your Company’s HR vision of continuous innovation and adopting best-in class practices, a number of digital initiatives were taken up towards improved employee processes, HR workflows etc. During the FY‘23, ONGC has digitized the Loans and Advances process and the nomination process for various Trusts.

Employee Recognition:

Your Company observed its Annual Awards 2022 with great enthusiasm on 19 February 2023, in Jaipur, to recognize its promising employees in different categories. This gala award ceremony was conceptualized to engage and inspire the employees of the organization to achieve greater heights and contribute to the organization and the nation altogether. The idea was to connect to the employees by applauding their achievements and making them feel recognized as great assets to the organization.

Employee Welfare: Your Company introduced new policies and such as paternity leave to male employees on adoption of a child, medical facilities for dependent parents of retired employees, additional financial support in case of death/disablement due to accident on duty, payment of ex-gratia to secondary workforce who succumbed to Covid-19, and reviewed existing policies leading to enhancement of ad-hoc payment under ONGC Composite Social Security Scheme and revision of guidelines for home nursing care.

Work- Life Balance: ONGC focuses on employee well-being by promoting healthy work-life balance. Enhancing employee experience is a priority and your Company achieves this through well-developed facilities like gymnasiums, clubs, sports facilities and music rooms in its townships. Facilities for gym, sports, yoga, library, etc. are also offered in ONGC’s offshore living quarters.

Your Company also recognizes and supports Collectives and other groups like Officers’ Club, Women Development Forum, Employee Welfare Associations, Resident Welfare Association, etc. in each of its work centres. These Collectives and affinity groups organized various sports, cultural and community events, which brought employees together and built a sense of camaraderie and collective belonging.

‘ONGC Himalayan Association’ has continued to foster the spirit of adventure and oneness with nature in its employees by organizing activities like mountaineering, trekking and water rafting.

Health and Wellbeing: Wellness Centres have been set up at various work centres of ONGC to provide consultations/ counselling to employees and their dependent family members, especially on issues related to mental health and well-being.

Employee Welfare Trusts:

Your Company has established the following Trusts for welfare and social security of employees:-

•    Employees Contributory Provident Fund (ECPF) is an exempted PF Trust established by your company under EPF&MP Act 1952. The Trust manages the Provident Fund of the employees.

•    Post-Retirement Benefit Scheme (PRBS) Trust manages the pension fund of employees of your company.

•    Composite Social Security Scheme (CSSS) formulated by your Company provides an assured

ex-gratia payment in the event of unfortunate death or permanent disability of an employee while in service.

•    Gratuity Fund Trust has been established for payment of gratuity as per the provisions of the Gratuity Act.

•    ONGC Post-Retirement Medical Benefits (PRMB) Trust has been established during the year to manage the funds for the post-retirement medical benefits of employees.

•    ONGC Leave Encashment Trust has been established to manage the funds for the Earned Leave encashment benefits of employees.

•    The ‘Sahyog Trust’ has also been set up by your Company for its Sahyog Yojana aimed at providing ex-gratia financial grant for sustenance, medical assistance and treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to workforce and their kin, who lack other means of support. Under this scheme, support is offered to casual, contingent, daily rated, part-time, ad hoc, contract appointees, and tenure-based employees, apprentices and trainees engaged by your Company besides regular and past employees.

•    The Asha Kiran Scheme is also in place to meet the emergency needs of the ex-employees retired prior to 1 January 2007. The scheme was launched as per DPE guidelines with a corpus of 1.5% of profit before tax.

Implementation of Govt. Directives for Priority Section

ONGC recognizes its responsibility towards welfare of SC and ST communities and complies with the Government directives in this regard. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15.4 percent and 11.3 percent respectively as on 31 March 2023.

Your Company carried out following welfare activities for their betterment in and around its operational areas:-

i. Annual Component Plan: An allocation of '200 Million is made every year under the Annual Component Plan. Of this, '60 Million is allocated to work centres for taking up welfare activities for local communities in operational areas. The remaining '140 Million is managed centrally, and is earmarked for taking up welfare initiatives (education, training, community development, medical and healthcare)

 

for the welfare of areas/persons belonging to SC/ST communities.

ii. Scholarship to meritorious students: To

support higher education of meritorious SC & ST students, 1000 scholarships are offered annually to SC & ST students for pursuing Engineering, MBBS, Geosciences and MBA courses. An amount of '48,000/- per student per year is offered, subject to fulfilment of conditions under the scheme.

Diversity & Inclusion: ONGC is an equal opportunity employer. ONGC adheres to constitutional and government guidelines on creating opportunities for employees and promotes employee development, irrespective of their caste, creed, race, gender, specially-abled status etc. Employees are empowered with best in industry support and opportunities, enabling them to excel in their professional and personal lives. Sufficient representation in terms of diversity, as per government guidelines, is ensured.

Women Development: Women employees constituted 7.8 per cent of ONGC’s workforce as on 31 March 2023. Your Company has been a pioneer in promoting inclusive workplaces practices that support career growth of women and enhance leadership capabilities of women. A focused programme on Women Leadership Development Urjasvini-NextGen, was launched for a batch of 25 young women executives at E2 - E4 level by ONGC during FY’23, to mentor and develop high-potential women executives for middle management roles, laying the foundation for furthering their leadership aspirations as future leaders of ONGC.

As part of an initiative called Voice of Oil Women (VOW) which was started in January 2022, ONGC’s Women Development Forum (WDF) Chapters, continued to organize online sessions every month for knowledge sharing, learning and networking amongst the women fraternity.

Inclusion of Persons with Disabilities (PwD): Your Company’s infrastructure and facilities provide an enabling environment to Persons with Disabilities, supporting them to effectively discharge their duties. Due consideration is provided to PwD employees in matters of recruitment, job assignments, transfers, accommodation and leaves. In an effort towards creating an equitable environment where PwDs can connect, play sports and build sense of community, your Company organizes the ONGC Para Games. ONGC is the only public sector enterprise to organize Para Games to promote sporting talent of Persons

with Disabilities.

The Hon’ble Minister of Petroleum and Natural Gas inaugurated the 4th ONGC Para Games in Thyagaraj Sports Complex in Delhi on 2 August 2022. 275 specially-abled employees from eight central oil and gas public enterprises participated in the 4^th ONGC Para Games being held during 2 to 4 August 2022. 192 ONGCians were among the participants.

Disclosure under the Sexual Harassment: ONGC has complied with the provisions under the Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013. As per the provisions under the Act, Internal Complaints Committees (ICC) have been constituted for dealing with complaints of sexual harassment of women at workplace. The members of the ICC have been provided training programs to equip them with relevant knowledge and tact for enquiring into such complaints.

Following is a summary of sexual harassment complaints:

Financial	Number of	Number of	Pending
Year	complaints	complaints	complaints as at
Â	received	disposed-off	31 March 2023
2022-23	6	4	2

39.    Industrial Relations

Harmonious Industrial Relations were maintained in your Company throughout the year. Man-days loss due to internal industrial action was reported as ‘NIL’ for FY’23.

40.    Compliance under the Right to Information Act, 2005

A well-defined mechanism is in place to deal with RTI applications received under the Right to Information Act 2005. A senior level officer has been designated as ‘Nodal Officer’ for fulfilling the requirements under RTI Act 2005. 23 executives have been designated as ‘Central Public Information Officers’ (CPIOs) in various work centres across the Company to process RTI applications.

The corporate website of your Company, www. ongcindia.com, has important Information relating to Right to Information Act, 2005 for convenience of general public.

During FY’23, your Company received 1,519 applications (including 58 transferred by other Public Authorities). Against these applications, information

as sought were provided in 1,386 applications, 13 applications were rejected and 35 applications were transferred to other public authorities, 2 were returned to applicants in accordance with the provisions of the RTI Act 2005. There were 247 first appeals, 226 were disposed-off during the period. Total pending requests were 21 as on 31 March 2023.

41.    Implementation of Official Language Policy

In FY’23 your Company took all efforts to promote and implement Official Language Policy. As per the Directives of Parliamentary Committee on Official Language, inspection of the work centers across ONGC were carried out. Paperless office has been made bilingual for effective implementation of Official Language policy. For enabling bilingual working, Unicode has been installed in SAP platform. To achieve the annual target of Official Language by using the applications of Hindi Computing tools, a special workshop/webinar has been conducted for Official Language Executives posted at different work centres of ONGC in association with C-DAC, Pune.

To encourage the employees to do their work in official language, various incentive schemes have been introduced in ONGC such as Best work center Award, Hindi Sevi Karmik Award and Special Hindi Incentive Scheme. A bilingual handbook has also been prepared and uploaded on ONGC’s internal portal or.net for ready reference on Official Language policy.

Besides, ONGC has also conducted Hindi workshops at regular intervals in all work centres. Hindi technical seminars/Webinars, Kavi Goshties, Kavi Sammelan and Hindi plays have been organized at various work centres. The Rajbhasha Fortnight was organized from 14 to 18 September 2022, during which, various competitions, programs and events were conducted. On the occasion of Vishva Hindi Divas, local litterateurs were honoured at the headquarters and other work centres of ONGC.

Hindi Teaching Scheme of Government of India was implemented effectively at all regional work centres of the Company. Besides, Hindi E-magazines are being published to promote paperless Office by all work centres of ONGC. An E-Roster of Employees with working knowledge of Hindi has also been put in place.

42.    Sports

As a responsible Maharatna PSU, ONGC strongly supports the promotion of sports and sportsmen by

offering employment opportunities and scholarships to sportspersons. Your Company’s sponsorship of various sporting associations, federations and events as well as support to develop sporting infrastructure has supported many sportspersons in bringing in accolades to the nation and the organization.

Some of the significant achievements of our sportspersons during the year were as follows:

(i)    Five ONGC sports persons represented country and won medals in Commonwealth Games 2022 at Birmingham (UK):

•    Table Tennis players G. Sathiyan & Harmeet Desai won Gold Medal in team event

•    Badminton Player Ashwini Ponappa won Silver medal in Mix team event.

•    Hockey players Gurjant Singh, Mandeep Singh secured a Silver Medal in Men’s Hockey Team

(ii)    Badminton player H. S. Prannoy was conferred with Arjuna Award for the year 2022 by President of India.

(iii)    The total number of National Awardees in the organization stands at 61:

•    Padma Bhushan - 1

•    Khel Ratna - 2

•    Padma Shri - 6

•    Arjuna Award - 50

•    Dhyanchand Award - 2

(iv)    Other Highlights

•    Badminton player H S Prannoy was part of the Thomas Cup winning team at Bangkok in May 2022

•    Pankaj Advani won the IBSF World Billiards Championship in Kuala Lumpur, Malaysia in October 2022.

•    Rashmi Kumari became the World Champion by winning 8^th World Carrom Championship in Langkawi, Malaysia in October 2022. She is 3rd time World Champion and 11^th time National Champion.

•    Grandmaster K Sasikiran won the Liffre International Open Chess Tournament, France in October 2022.

•    Shiva Thapa won Silver Medal in Light weight

category at ASBC Asian Boxing Championship, Jordan in November 2022. He consecutively won sixth medal in Asian Boxing Championship 2013, 2015, 2017, 2019, 2021,2022.

•    Sports scholarships in 22 sports were awarded to 214 budding talents

•    To encourage and support women in sports, sports scholarships were also awarded to women in Kabaddi, Wrestling, Boxing, Hockey, Archery etc.

43.    Corporate Social Responsibility (CSR)

As one of India’s foremost Nation Builders, your Company is committed towards its social responsibility. The Annual Report on CSR activities is annexed as Annexure - E.

44.    Regulatory or Courts order

During FY’23, there was no order or direction of any court or tribunal or regulatory authority either affecting Company’s status as a going concern or which significantly affected Company’s business operations.

45.    Material changes and commitments affecting financial position between the end of the financial year and date of the report

There have been no material changes and commitments which affect the financial position of the Company that have occurred between the end of the financial year to which the financial statements relate and the date of this report.

46.    Directors’ Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

a)    In the preparation of the annual accounts, the applicable accounting standards were followed and there was no material departures from the same;

b)    The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31 March 2023 and of the profit of the Company for the year ended on that date;

c)    The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the

Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d)    The Directors had prepared the annual accounts of the Company on a ‘going concern’ basis;

e)    The Directors had laid down internal financial controls which were being followed by the Company and that such internal financial controls were adequate and were operating effectively; and

f)    The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

47.    Annual Return

Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act, 2013 Annual Return of the Company is placed at https://ongcindia.com/web/ eng/investors/annual-return

48.    Particulars of Employees

Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued thereunder are not applicable.

The terms and conditions of the appointment of Whole-time Directors are subject to the applicable guidelines issued by the Department of Public Enterprises (DPE), Government of India.

49.    Audit Committee

In compliance with Section 177(8) of the Companies Act, 2013 and Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, 2010 the details regarding Audit Committee is provided under Corporate Governance Report which forms part of Annual Report.

There was no instance during FY’23, where the Board had not accepted any recommendation of the Audit Committee.

50.    Vigil Mechanism:

Your Company has established Whistle Blower Policy/ Vigil Mechanism to report genuine concerns about ethical behaviour, actual or suspected fraud, violation of Code of conduct and also instances of leak of unpublished price sensitive information. The said vigil mechanism provides for adequate safeguards against victimization of persons who use the mechanism and

has provision for direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases.

Policy of the Company may be accessed at https:// ongcindia.com/web/eng/investors/policies

51. Vigilance Functions:

Your Company has a full-fledged Vigilance Department headed by Chief Vigilance Officer. The Department operates on the guidelines of Central Vigilance Commission on Vigilance management in Public Sector Enterprises and is guided further by instructions issued by the Department of Personnel and Training and MoPNG from time to time.

Complaints are handled as per the complaint handling policies stipulated in Vigilance Manual issued by the Central Vigilance Commission. The prime focus of Vigilance activities has been Preventive and Participative Vigilance by having regular interaction with employees and other stakeholders to spread awareness among the masses.

Details of vigilance cases are provided as under:

Nature of cases	Details of cases
	Penalty imposed during the financial year (2022-23)	Cases Pending as on 31 March 2023
Major penalty	16	8
Minor penalty	19	3

52. Reporting of Fraud:

During FY’23, the Company has reported an instance of fraud by way of misappropriation of funds through payment made against fictitious medical bills by one regular and one contractual ONGC Doctor in collusion with a vendor. The relevant details (refer Note 24.5 of stand-alone financial statements) are provided as under:

a)    Nature and Description of fraud: Payment against fictitious medical bills;

b)    Amount involved: '2.41 Million identified till date;

c)    Parties involved, if remedial action not taken: Not applicable; and

d)    Remedial action taken - Based on internal departmental enquiry process, the regular ONGC Doctor involved in the reported fraud has been dismissed from the services of ONGC. Further, services of contractual Doctor have also been

terminated. The empanelment of vendor involved in the fraud, has also been terminated by ONGC. The matter has also been referred to CBI for investigation and criminal prosecution, if any.

In order to prevent recurrence of such instance and to strengthen the internal control mechanism, Internal Audit carried out special audit of medical process and recommended various control measures including empanelment of chain pharmacies, fast track implementation of ONGC Clinical Referral e-system (ONGCares), strengthening of system controls over medical cards for all beneficiaries, stringent compliance of Segregation of Duties (SoD) in medical process, robust communication and acknowledgement mechanism for medical services which are under implementation.

Steps towards streamlining the Medical Services:

Following measures have already been put in place so that such incidence does not recur:

a.    The details of medical treatment advice / medicines prescribed are being sent by SMS at the registered mobile number of the beneficiary employee - regular and separated.

b.    Randomised bill checking: Checking of bills of one work centre by other work centre.

c.    Internal Audit has completed the system study and the suggested changes are being implemented.

53.    Risk Management Policy and Implementation:

The Company has a Board approved Risk Management Policy. Risk framework and Risk portfolio are periodically monitored by the Risk Management Committee, Audit Committee and the Board.

54.    Auditors

The Statutory Auditors of your Company are appointed by the Comptroller and Auditor General of India (CAG). There were 5 Practicing Chartered Accountants firms namely M/s SARC & Associates, M/s Kalani & Co., M/s R.G.N. Price & Co. M/s S. Bhandari & Co. LLP and M/s J Gupta & Co. LLP who were appointed as Joint Statutory Auditors of the Company for FY’23.

The Statutory Auditors have been paid a total remuneration of '55.08 Million towards audit fees, certification and other services. The above fees are inclusive of applicable service tax/ GST but exclusive of re-imbursement of travelling and out of pocket expenses.

Auditors’ Report on the Accounts

Statutory Auditors Reports and the comments of CAG on standalone and consolidated accounts of the Company are placed along with respective financial statements for FY’23. There is no qualification in the Statutory Auditors Reports on the Financial Statements of the Company for FY’23. Further, Comptroller & Auditor General of India (C&AG) in its Supplementary Audit under Section 143(6) read with Section 129(4) of the Companies Act, 2013, has provided “Nil” comments in Consolidated and Standalone Financial Statements for FY’23. The comments of Comptroller & Auditor General of India (C&AG) form part of this Report and is attached as Annexure - F.

55.    C&AG Audit on other matters:

The C&AG conducts audits of various nature viz. Performance Audit, Thematic Audit, Compliance Audit, Follow-up Audits, etc.

As on 31 March 2023, there are twenty five published C&AG reports/paras of previous years, pending at various stages. These are related to Payment of Stagnation Relief, Non-recovery of Perquisite Tax, Payment towards Encashment of Half Pay Leave/ Earned Leave, IT Audit on FI-CO Module of Sap Loss of Interest due to Inordinate Delay in Receipt of Share of Gas Transportation Charges, Delay in Appraisal and Non-Monetisation of the Discoveries in KG-DWN-98/2 Block, Non Achievement of objective of Acquiring Coal Bed Methane (CBM) Blocks, Avoidable Extra Expenditure due to Delay in Procurement of Casing Pipes, Failure to obtain the Share of Cost of Immediate Support Vessels purchased by ONGC for Security of Offshore Assets from private Exploration and Production (E&P) Operators, Non-recovery of pending Cash Calls, Construction of Toilets in Schools by CPSEs, Loss of Returns to ONGC due to Adoption of Financing Mechanism to Maintain the Status of OPaL as a Non-Public Sector Undertaking, Avoidable Payment of Equipment Standby Rentals, Supply of Gas without Security resulted in Non-recovery of Dues, Water Injection Operations in Western Offshore, Loss due to Flaring of High Pressure Gas, Management of Spectrum assigned on administrative basis to Government Departments/ Agencies, etc.

These Audit Paras have been suitably replied and the same are under review of MoPNG or C&AG.

56.    Cost Audit

There were 6 cost accountants firms, namely M/s ABK & Associates, M/s Sanjay Gupta &

Associates, M/s Rao, Murthy & Associates, M/s Shome and Banerjee, M/s Dhanajay V Joshi & Associates and M/s Dewanji & Co. appointed by the Board as Joint Cost Auditors of the Company for FY’23. Necessary cost audit report shall be prepared by the said auditors and filed with the Central Government as per requirements under the Companies Act, 2013.

57.    Secretarial Audit

Your Company had engaged M/s JMC & Associates, Practicing Company Secretaries as Secretarial Auditors for FY’23. Secretarial Audit Report is annexed as Annexure - G.

Reply of management to the qualifications made in the Secretarial Audit Report are as under:

Board Composition:

The Company, being a CPSE, composition of its Board of Directors is the prerogative of the President of India as provided under the Articles of Association of the Company. There was shortage of one Independent Director during intermittent period, i.e. 13 July to 31 August 2022 and 7 December 2022 to 28 February 2023, due to completion of tenure of one Independent Director in the first instance and appointment of one whole-time director in other case. The Company was fully compliant as on 31 March 2023.

Availing working capital loans for short periods on a rolling basis against lien on Term deposits from nationalized banks:

The Company did not register charges for loan against Term Deposit Receipts from Banks. The Banks stated that no charge was required to be registered for the loans against Term deposits as the original of Term Deposit receipts were kept with banks under lien. The Company accords priority to compliance requirements and matter is under examination in consultation with legal practitioner.

58.    Changes in Board of Directors and Key Managerial Personnel

Being a Government Company, policy on directors’ appointment and remuneration is not applicable and also evaluation of their performance is exempted under the Companies Act, 2013.

Details of Appointments/ Cessation of Directors and KMPs:

Changes in the Board/ Key Managerial Personnel of the Company during the year and up-to date of the Report are as under:

•    Shri Arun Kumar Singh has been appointed as the Chairman w.e.f. 07.12.2022 and Chief Executive Officer (CEO) of the Company w.e.f. 24 January 2023. He also holds the additional charge of post of Director (Strategy & Corporate Affairs) w.e.f. 1 August 2023.

•    Dr. Alka Mittal, ceased to be Chairman & Managing Director (Addl. Charge) and Director (HR) of the Company w.e.f. 01.09.2022.

•    Smt. Sushma Rawat has been appointed as Director (Exploration) of the Company w.e.f. 1 January 2023.

•    Shri Rajesh Kumar Srivastava ceased to be Director (Exploration) on the Board w.e.f. 1 January 2023.

• Shri Anurag Sharma ceased to be Director (Onshore) on the Board w.e.f. 1 March 2023.

•    Shri Manish Patil has been appointed as Director (HR) of the Company w.e.f. 5 May 2023.

• Shri Parveen Mal Khanooja, IAS, Additional Secretary in the Ministry of Petroleum & Natural Gas has been appointed w.e.f. 23 September 2022 as the Government Nominee Director vice Shri Srinivas Gudey, the then Additional Secretary & Financial Advisor.

The Board places on record its appreciation for

commendable contribution made by Dr. Alka Mittal,

Shri Rajesh Kumar Srivastava, Shri Anurag Sharma

and Shri Srinivas Gudey during their tenure on the

Board of your Company.

59.    Declaration by Independent Directors:

The Company has received declaration from Independent Directors confirming that they met the criteria prescribed under the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

60.    Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Auditors and Comptroller and Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and all members of the ONGC Family for their faith, trust and confidence reposed in the Board. Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels to ensure that the Company continues to sustain, grow and excel.

On behalf of the Board of Directors

Sd/-

Place: New Delhi    Arun Kumar Singh

Date: 4 August 2023    Chairman & CEO

1

   Till FY’23 Eastern offshore Asset (EOA) successfully completed (11) Eleven sub-sea wells [Oil Wells (9) and

Water injection wells (2)] of KG-DWN-98/2 Field.

2

Twenty seven (27) drilling rigs are being replaced by new generation hi-tech rigs in phased manner.

3

Your Company reviewed the entire issue of disputed Service tax and GST on royalty and decided to make a provision towards these disputed taxes as a prudent and conservative practice in respect of the nominated fields and in JV blocks where there are no disputes amongst the JV partners. Accordingly, during the quarter and year ended 31 March 2023, the Company has provided '92,351 Million towards disputed taxes

---

Mar 31, 2022

On behalf of the Board of Directors of your Company, it is my pleasure to present the 29^th Annual Report of Oil And Natural Gas Corporation Limited (ONGC/ the Company) and its Audited Financial Statements for the year ended March 31, 2022 (FY’22), together with the Auditors’ Report and Comments on the Financial Statements by the Comptroller and Auditor General (CAG) of India.

As the global economy recovers from the stress of COVID-19 pandemic, supply chain disruptions, extreme weather events, energy supply crunch and geo political upheavels have caused turbulence in energy sector. With global demand rebounding and outpacing supply, energy prices have increased substantially from the last years level. Years of inadequate financial returns coupled with low commodity prices and surge in net zero aspirations have depressed investments in fossil fuels. The whittled down spare capacity has contributed to the present demand supply mismatch and the same is not expected to moderate in 2022.

Your Company, on its part, has been maintaining the pace of capital spending and project execution, sustaining its production, optimizing operating costs to improve the value proposition for all stakeholders while looking for cleaner ways of doing its business.

Your Company, along with its group companies, has registered yet another year of robust performance and made substantial progress on most of the priority areas.

Despite the challenges faced by the Company during the second wave of pandemic and the consequent logistic constraints, your Company’s standalone production during the year was 40.453 Million Metric Tonnes of oil and oil equivalent gas (MMTOE) (against FY’21 production of 42.369 MMTOE ).

• Crude oil production, including share of JV production, was 21.707 Million Metric Tonnes (MMT) during FY’22 against 22.533 MMT during the previous year.

• Natural gas production, including share of JV production, was at 21.680 Billion Cubic Metres (BCM) against 22.816 BCM during FY’21.

• Value Added Products (VAP) production during FY’22 was 3.089 MMT against 3.120 MMT during FY’21.

Backed by an intensive and continuous exploration programme, your Company declared four oil and gas discoveries (two on-land and two offshore) during FY’22.

During FY’22, accretion of In-place volume and EUR (Estimated Ultimate Reserves) in 2P category from ONGC operated areas in India has been 90.50 MMTOE and 40.82 MMTOE respectively. Reserve Replacement Ratio (RRR - 2P EUR) from domestic fields was 1.01 with respect to 2P reserves. Your Company has maintained Reserve Replacement Ratio (2P) of more than 1 for the 16th consecutive year.

Your Company has four direct subsidiaries, namely ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL), Hindustan Petroleum Corporation Limited (HPCL) and Petronet MHB Limited (PMHBL).

Your Company also has nine Associates/ Joint Ventures, namely ONGC Petro additions Limited (OPaL), ONGC Tripura Power Company Limited (OTPC), ONGC TERI Biotech Limited (OTBL), Dahej SEZ Limited (DSL), Mangalore SEZ Limited (MSEZL), Indradhanush Gas Grid Limited (IGGL), Pawan Hans Limited (PHL), Petronet LNG Limited (PLL) and Rohini Heliport Limited (RHL).

1. Major Highlights: FY’22

The major highlights during FY’22 are:

i. Revenue from operations in FY’22 stood at ''1,103,454 million against '' 681,411 million in FY’21.

ii. Net profit in FY’22 was ''403,057 million against ''112,464 million during FY’21 mainly due to higher realisation on Crude Oil, Natural Gas and VAPs.

iii. Exploratory well Hatta#3 in Son valley sector of Madhya Pradesh produced gas@62,044 m3/day on testing and confirmed commercial production potential of Vindhyan Basin. With development and production, this would be the ninth producing Basin of India.

iv. Production of Cluster-7 & 8 fields of Mumbai High Asset increased from 5,700 bopd on 1 April 2021 to 16,800 bopd on 28 January 2022.

v. Production commenced from the second deep-water gas well, U1B, the deepest well of the Cluster- II KG-DWN 98/2 on 28 August 2021 with initial production of ~ 0.65 MMSCMD.

vi. Cambay Asset achieved the highest ever production level of 763 TPD on 9 and 30 March, 2022. It also achived highest ever annual oil production of 0.241 MMT during FY’22.

vii. Cauvery Asset achieved the highest gas production of 33.1 LCMD after a span of 3 years on 1 October 2021 with the peak production of 15.9 LCMD of gas from Kanjirungudi field.

viii. Assam Asset scaled up oil production in Lakhmani Area (consisting of Lakhmani, Laiplingaon, Kuargaon and Demulgaon Field) to the level of 550 TPD, a production milestone achieved after a long gap of 14 years.

ix. Institute of Engineering and Ocean Technology received a patent on "Process of Preparation of corrosion inhibited completion fluids for Oil and Gas Wells" on 7 April 2021.

x. Regional Geoscience Laboratory, Vadodara received a national patent for Formulation of Viscosity Reducer and Flow Improver for Asphaltic and Waxy Crude Oil Emulsions.

xi. Gas Hydrate Research & Technology Centre, ONGC, Panvel signed an agreement with IOC R&D Centre for synthesis and evaluation of suitably functionalized nano-materials for use as Kinetic Inhibitors for Gas Hydrates.

xii. ONGC eases business procedures and committed procurement worth ''30,0000 million In support of ‘Aatmanirbhar Bharat’ initiative during FY’22.

xiii. First exploratory well in OALP Block CB-ONHP-2018/2 awarded under new HELP regime drilled for exploring the deeper new Mesozoic play from Cambay basin. Two appraisal wells in DSF-II contract areas of RJ/ONDSF/ Chinnewala /2018 & MB/OSDSF/ CA/2018 were also drilled during the year.

xiv. Launching of an online platform to digitalize trading for Integrated Trading Desk of group companies, on 1 October 2021.

xv. MoU with Saudi Aramco on 18 November 2021 during Dubai Expo 2020 for collaboration and cooperation in energy-related areas.

xvi. MoU with Solar Energy Corporation of India (SECI) to develop renewable energy-based power, ESG (Environment, Social, and Governance) projects, for achieving green energy objectives on 2 December 2021 in New Delhi.

xvii. ONGC started e-auctioning for domestic Gas on 12 April 2021.

xviii. ONGC obtained Proprietary membership for trading of natural gas at Indian Gas Exchange (IGX) on 26 March 2022.

xix. Contract signed for largest pipeline replacement project PRP-VII at a project cost of USD 490.54 MM on 9 March 2022.

xx. Spent ''5,316 million on Research & Development activities and another ''3,001 million on various innovative initiatives during FY’22 that included technologies and processes like Low Salinity Water Injection, Managed Pressure Drilling, Casing While Drilling, Micro Bubble Technology, Auto Driller, Micro Tubines, LED lighting, Dual gas Blending, Plunger Lift in Gas Wells, Hydraulic SRPs and large scale real-time monitoring of wells on SRPs and PCPs etc. These

initiatives resulted in improved operational efficiencies and cost optimization for your Company.

2. Global Recognitions

Your Company has been recognised at various national and international forums, list of Awards and Accolades is annexed as Annexure - A.

3. Details of discoveries

During the year, your Company has notified four new discoveries in acreages operated by it.

Details of exploratory efforts made by your Company were as under:

Sr. No	Basin/Block	Discovery well	Acreage	Discovery Type	Hydrocarbon Type
1	KG Onland	South Velpuru-2	PML Godavari	Prospect	Oil
2	KG Onland	Gopavaram Deep-1 (GMD-AA)	PML Sirikattapalli -Pasarlapudi 24-Gopavaram	Pool	Gas
3	Mumbai Offshore (SW)	VGN-1 (VGN-A)	PML Ratna	Prospect	Oil & Gas
4	Mumbai Offshore (SW)	SD-4-4 (SD-4-D)	PML C Series in Daman Tapti area	Prospect	Oil & Gas

• Exploratory well Hatta-3 in Son valley sector of Madhya Pradesh produced gas @62,044 m3/day on testing and confirmed the potential of commercial production of Vindhyan Basin.

• A total of 1803.86 LKM of 2D seismic data and 3962.99 SKM of 3D seismic data was acquired. Out of this quantum, a total of 1504.66 LKM 2D and 2265.57 SKM of 3D seismic data was acquired in OALP blocks.

• Testing results from well South Velpuru-2 (SVL-2) proved presence of commercial oil in Tirupati play for the first time and gave a impetus for further exploration of the corridor with focus on Tirupati play.

• Oil reserve below L-I reservoir in MH North field enhanced In-place volume of oil by 20.86 MMT

4. Reserve Accretion and Reserve Position

Accretion of in-place hydrocarbons and EUR by ONGC in its operated areas and in Non-Operated (JV Share) during FY’22 along with position of in-place hydrocarbons and EUR established as on 01.04.2022 is as follows:

In-Place Hydrocarbon volumes and Estimated Ultimate Recovery (MMTOE)
Accretion during the year 2021-22						Position as on 01.04.2022
		Domestic (Operated)		JV-Domestic (ONGC Share)		Total	Domestic (Operated)		JV-Domestic (ONGC Share)		Total
In-place Hydrocarbon	3P	89.03		0.60		89.63	9,334.45		698.51		10,032.96
	2P	90.50		0.60		91.10	8,326.77		675.21		9,001.98
EUR	3P	36.70		0.83		37.53	3,310.86		92.87		3,403.73
	2P	40.82		0.83		41.65	3,096.56		92.36		3,188.92
Position of Reserves and Contingent Resources as on 01.04.2022 (MMTOE)
As per PRMS			Category		Company Operated			JV Operated		Total
Reserves			2P		710.19			16.42		726.61
			3P		754.04			16.93		770.97
Contingent Resources			2C		460.01			-		460.01
			3C		630.46			-		630.46

5. Award of Blocks

During FY 2021-22, your Company participated in the OALP rounds VI & VII and emerged as the highest bidder winning an acreage measuring 34,097 Sq. Km. in OALP Round VI against the total offered area of 35,346 Sq. Km. ONGC emerged as sole bidder in 3 blocks in OALP-VII and is expecting an addition of more than 9300 Sq. Km.

Currently, all the awarded OALP blocks are in exploratory phase. As on 1 April 2022, a total 3,047.66 LKM of 2D seismic data and 8,965.05 SKM of 3D seismic data has been acquired and one exploratory well drilled in OALP Blocks.

6. EOR Proposals

Your Company has been consistently expanding its EOR portfolio. Under the Enhanced Recovery (ER) policy, 211 fields of ONGC located in onshore and offshore areas were considered for screening, 33 ER proposals were submitted and approvals for 17 have already been received.

ONGC for the first time executed a Pilot polymer flood project in heavy oil field of Mehsana. The Pilot was completed on 15 September 2020 and was successful in achieving all its objectives. The incremental gain is 5,057 m3 in 13 Months against FR envisaged 4,960 m3. The closure report was approved by DGH on 8 November 2021.

7. Monetization of Discoveries

Out of four new discoveries made during the financial year, two on-land discoveries viz. South Velpuru-2 and Gopavaram Deep-1 (GMD-AA) were monetized. Besides, four (4) other discoveries of previous years i.e. B-59-1, WO-24-3, D-30/ D-30-2 (D-30-A) and GS-71-2 were also monetized.

8. Major Projects Completed

During the FY’22, following two major projects (1 Development & 1 Infrastructure) with an investment of around '' 38,071.13 million were completed:

Sl. No	Project Name	Completion Date	Actual Cost ('' million)	Oil gain (MMT)	Gas Gain (BCM)
1	Ratna R Series	31.05.2021	35,270.54	7.07	0.97
2	Geleki Pipeline	30.11.2021	2,800.59	NA	NA
	Total		38,071.13	7.07	0.97

9. Drilling of Wells

Your Company drilled 434 wells during FY’22 against 480 wells during FY’21. 78 of these wells were exploratory wells, while the balance 356 wells were development wells including side-track wells. Second wave of Covid pandemic, Cyclones Tauktae & Yaas and LAQ issues in CBM and Karaikal impacted the drilling activities of your Company. The major highlights of Drilling operations during the year were:

• Drilling Rig IPS-M700-II of Ahmedabad Asset created a new milestone and completed well #AMLO(TD-1622m) with a commercial speed of 8224 M/RM, highest ever by any drilling rig of ONGC since inception.

• Implemented Casing While Drilling (CWD) successfully in five wells of Mumbai to mitigate the issues of drilling for 20" casing after 30" conductor piling.

• Tested two Ultra Deep wells in water depth of more than 2800m - #UD-AF (Qgas-765,625 m3/d thru 26/64" choke) & #UD-AG (Qgas-742,634 m3/d thru 28/64" choke) in Cluster-III of KG-DWN-98/2 Block in East Coast.

• Completions of two gas wells #U-1-B (WD 1407m) & #U-1-A-Shift (WD 1250m). Production from #U-1-B commenced from 27 Aug 2021.

10. Oil, Gas & VAP Production

Product wise details of Production, Sales and Value, during FY’22 with comparison of FY’21 are as under:

	Description	Unit	Production Qty		Sales Qty		Value ( '' in million)
			FY’22	FY’21	FY’22	FY’21	FY’22	FY’21
	Crude Oil	(MMT)	21.71	22.53	20.29	20.71	8,36,612	4,79,338
	Natural Gas	(BCM)	21.68	22.82	16.75	17.69	1,24,414	1,14,216
	Value Added Products (VAP)
	Liquefied Petroleum Gas	000 MT	882	1,014	883	1,011	46,752	31,973
	Naphtha	000 MT	932	941	964	915	50,640	26,081
	Ethane- Propane	000 MT	315	242	315	241	9,078	4,963
	Ethane	000 MT	499	483	500	483	10,815	9,741
	Propane	000 MT	199	187	197	183	10,637	6,051
	Butane	000 MT	116	97	116	97	6,185	3,207
	Superior Kerosene Oil & MTO	000 MT	23	36	23	36	1,086	934
	Others*	000 MT	123	120	62	62	3,404	2,405
	Sub Total (VAP)	000 MT	3089	3,120	3,060	3,028	1,38,597	85,355
	Total						10,99,623	6,78,909
1	*Others include ATF, Sulphur-P Sulphur-C, LSHS, HSD 11. Production from Overseas Assets - ONGC Videsh Ltd

11. Production from overseas assets - ONGC Videsh Limited

Your Company’s overseas operations are carried out exclusively through its wholly owned subsidiary, ONGC Videsh Limited (OVL), which in turn conducts its operations either directly or through its subsidiaries. Production from overseas assets during FY’22 was 12.330 MMTOE in comparison to 13.039 MMTOE achieved during FY’21; a decrease of approx. 5.4%. The oil production during FY’22 was 8.099 MMT; 4.8% less compared to the production of 8.510 MMT during FY’21. The gas production of 4.231 BCM during the year was 6.6% less compared to FY’21 production of 4.529 BCM..

12. Other Exploration Initiatives/Activitiesa) National Seismic Programme (NSP):

To accomplish its mandate of 2D seismic data Acquisition, Processing & Interpretation (API) in un-appraised areas of Indian sedimentary basins grouped in 11 on-land sectors, your Company completed data acquisition of 41,714.37 LKM and data processing and interpretation of 41,745.7 LKM. The program has been completed and all API deliverables have been submitted to NDR, DGH. This data in turn would contribute in augmenting domestic production of oil and gas.

b) Basement Exploration:

As a part of concerted excploration efforts for Basement Play, a total of 12 wells were drilled , which included 3 wells (BH-80, SD-15 & HR-1) in Mumbai Offshore, 2 wells (Charali-53 & Borhola-67) in Assam Shelf and 7 wells (Padra-150, Padra-152, Padra-155, Padra-158, Padra-161, Padra-163 and CBONH182A-1) in WON Basin.

Out of these, five wells (Padra-152, Padra-158, Padra-161, BH-80, HR-1) proved oil bearing and one well (SD-15) proved gas bearing. In addition, six wells drilled during FY’21 (2 in WON Basin, 4 in Mumbai Offshore) were tested during the year. Out of these, well Padra-146 (WON Basin) proved to be oil bearing in Basement section (Trap) and HC indications were observed in wells BH-81 & BH-82 (Mumbai Offshore) in Basement section.

HP-HT Exploration:

High pressure- High Temperature (HP-HT) and Tight reservoirs have been an exploration and development challenge for your Company. Your Company is striving hard in the field of HP-HT due to bore hole complications, fluid design, high-cost drilling technology including HP-HT cementing, well construction and other reservoir engineering issues. In ONGC operated areas, HP-HT regime is encountered in areas like Periyakudi, Bhuvanagiri in Cauvery Onland, Kottalanka, Nagyalanka, Bantumilli South and Malleswaram in KG Onland. Yanam in KG Shallow offshore, G-4-6, D-33 and GS-OSN-2004/1 in Western Offshore were also classified as HP-HT reservoirs. Additionally, high pressure regime is often encountered in certain areas of Assam Arakan Fold Belt.

During recent campaign of high-tonnage hydro-fracturing (HF) in Malleswaram field, significant gain in oil production could be achieved.

13. Exploration and Production from Unconventional Sourcesa) Coal Bed Methane (CBM):

Of the 9 original blocks that the Company was awarded as part of the CBM bidding rounds including nomination, your Company relinquished 5 blocks on the basis of data generated from exploratory efforts and has been operating 4 blocks (Jharia, Bokaro and North Karanpura in Jharkhand and Raniganj in West Bengal) where exploration activities have been completed. Developmental activities are at an advanced stage in three of these blocks viz. Bokaro, Jharia and North Karanpura.

b) Gas Hydrate Exploration Program

Your Company has been an active contributor on gas hydrates exploratory research under National Gas Hydrate Program (NGHP) of Govt. of India. ONGC, as a Consortium Member of National Gas Hydrate Program of GoI has played a significant role in G&G studies for the identification of sites for NGHP-01 and NGHP R&D Expedition-02. Based on the results of NGHP-02 and subsequent studies and review by international experts, KG-DWN-98/5 has been found suitable for pilot production test. Various studies like sand control measures, well design, reservoir and production simulation modelling as prerequisite for the pilot production have been completed. Your Company would undertake pilot production test in deep waters for gas hydrate.

ONGC had signed an MoU with initial validity of five years on 02.03.2021 with Skolkovo Institute of Science and Technology (Skoltech), Moscow for Collaborative Studies to establish cooperation in the Gas Hydrate Research & Technology applicable to Indian Basins. ONGC has also signed an MOU with IOC R&D for development of nanoparticles as kinetic inhibitors in the dissociation of gas from gas hydrates under reservoir conditions.

14. Drilling Services

There has been continuous induction of new technologies in Drilling Services. Some of these new technologies, which are now being used extensively are:

a) Managed Pressure Drilling (MPD): MPD, used to precisely control the annular pressure profile throughout the wellbore, was inducted first time in ONGC at Tripura Asset for mitigation of down-hole complications. Two more wells ROAH_Sub, ADAT were successfully completed with this technology during FY’22.

b) Casing While Drilling: In view of 30" conductor piling issues and further drilling for 20" casing, implemented Casing While Drilling (CWD) in five wells of Mumbai.

c) Auto-Driller: Automatic bit feeding system (eWildcat TM 2.0) implementated in 5 drilling rigs (Type-II & above rigs of ONGC) to enhance the drilling efficiency.

d) Introduction of Micro Bubble technology: Eco-friendly Micro Bubble technology developed by IDT is used to drill reservoirs with low pressure (4.5-6.0 ppg). Same has been used in wells of Assam, Cambay and Mumbai.Since this technology is indigenous and found to be cost effective, it is planned to be used extensively in sub-hydrostatic reservoirs.

e) Introduction of System LCM: For controlling of mud losses in Reservoir and Non-reservoir sections, "System LCM" Drillezy and Fracseal were introduced on pilot scale to drill loss prone zone. Based on the success, Fracseal is being used to drill non reservoir loss prone zone as a preventive measure. Barablend LCM pill was used to successfully remediate Activity/Lost circulation problem and enabled testing of the basement formation Western Offshore Basin.

Your Company is also implementing technologies like Liner While Drilling, Axial Oscillation Tool for friction reduction & improved axial force transfer in drill string, SoftSpeed-II and E-Drilling predictive analysis.

15. Infrastructure Up-gradation:

Your Company is in the process of up-gradation of existing resources with State-of-Art equipment to remain competitive in the global E&P business. It has already taken actions to refurbish, upgrade and replace its Onshore/Offshore drilling rigs, Workover rigs, Cementing units, Crisis Management equipment in phases.

Major Infrastructure Up-gradations during the year were as under:

• 38 new Well Stimulation units inducted thereby enhancing the Frac Setups at Rajahmundry, Assam and Ahmedabad.

• Twenty seven (27) drilling rigs are being replaced by new generation hi-tech rigs in phased manner. Three new generation hi-tech drilling were commissioned during 2021-22 while 4th rig was commissioned in April 2022. Further, six new generation rigs are under different stages of commissioning.

• 4 Rigs out of 20 Automated Hydraulic Workover rigs are under various stages of commissioning at Mehsana, Ahmedabad, Assam and Ankleshwar.

• Acquisition of new 24 Well Stimulation units for onshore (16 Replacement and 8 new) in progress.

• 9 cementing units and 9 batch-mixtures replaced till 31st March 2022. Further, 24 cementing units are under procurement.

16. Information Technology

Your Company has carried out several Business Process improvements in the field of IT in FY’22. Major Process improvements were as follows:

Vendor Invoice Management (VIM): End-to-end invoice processing system including capturing/extracting the information from hardcopies/ softcopies of Invoices using OCR technology with minimal manual intervention.

Governance, Risk & Compliance (GRC): GRC module is implemented with complete RM module with fresh identification of Risks, Risk Analysis and Risk Response-Planning & monitoring.

Enterprise-wide SCADA System implemented in ONGC covering production installations and drilling rigs. Following two upgrades are being implemented with latest hardware and software with enhanced cyber security features:

Production SCADA upgrade covering all onshore & offshore installations and is near completion

Real Time Data Monitoring and Management (RTDMM) system for onshore drilling rigs on subscription basis. The new system will enable Real time data acquisition, aggregation and transmission from various production installations and drilling rigs to central location, Delhi and Disaster Recovery Centre, Vadodara for visualization through webservices. The system has well control feature also for offshore wellhead platforms. Solution implemented in 46 rigs of 48 rigs notified.

OSI-PI Historian is also established which will enable various advanced analytical tools to access historical and real time data thereby ensuring safe operation of these installations.

Block chain solution implemented to streamline contract management for Gas Sales. This solution has enabled monitoring the Gas Supply Agreements in real-time with an automated agreement management turn-key system covering all existing 130 contracts with provision for integrating future contracts. This has resulted in increased transparency and mutual trust amongst all stakeholders.

Digital transformation journey has been accelerated with the identification of 68 digital initiatives. In the initial phase, 6 initiatives are being taken up for implementation. Digital Centre of Excellence has been setup which will act as the change catalyst for the digital journey of your company on a long-term basis. Simultaneously your company has taken a head-start with implementation of AI/ ML based Common Analytics platform, which provides predictive and perspective cross domain analytics across various data sources in ONGC.

17. Information Security:

In order to strengthen the information security system, your Company has implemented following systems during FY’22:

• Enterprisewide Access Control System (EACS) for strengthening physical security covering 324 sites spread across the country.

• Information Security Operations Center (ISOC) for securing the digital infrastructure.

18. Financial Highlights:

Your Company earned Profit After Tax (PAT) of '' 403,057 Million, up by 258.39% over FY’21 (''112,464 Million) and registered Revenue from Operations of ''1,103,454 Million, up by 61.94% over FY’21 (''681,411 Million).

Highlights - Standalone Financial Statements

• Revenue from Operations : ''1,103,454 Million

• Profit After Tax : ''403,057 Million

• Contribution to Exchequer : ''493,316 Million

• Return on Capital Employed : 29.01%

• Debt-Equity Ratio : 0.03:1

• Earnings/ Share : '' 32.04

• Book Value/ Share : '' 189

Particulars	'' in Million
	2021-22	2020-21
Revenue from operations	1,103,454	681,411
Other Income	65,156	71,425
Total Revenue	1,168,610	752,836
Profit Before Interest Depreciation & Tax (PBIDT)	609,456	335,697
Profit Before Tax (PBT)	410,400	164,028
Profit After Tax	403,057	112,464
Transfer to General Reserves	288,576	75,400

19. Change in Share Capital:

During the year under review, there is no change in capital structure of the Company.

20. Dividend

Your Company has paid interim dividend of ''5.50 per share of ''5 each (@110%) in November 2021 amounting to ''69,192 million and ''1.75 per share of ''5 each (@35%) in February 2022 amounting to ''22,015 million. The Board of Directors has recommended final dividend of '' 3.25 per share of ''5 each (@65%) amounting to ''40,886 million subject to approval of shareholders. The total dividend pay-out for FY’22 would be '' 132,093 million with pay out ratio of 32.77%.

The revised Dividend Distribution policy may be accessed at the web link: https://www.ongcindia.com/wps/wcm/connect/en/ investors/policies.

Revision in the said policy was made considering that ONGC is currently having only one class of equity shares as also to provide more flexibility to the Board w.r.t. decisions regarding declaration of dividend.

21. Financial Accounting and Secretarial Standards

The Financial Statements of the Company for FY’22 have been prepared in compliance with the applicable provisions of the Companies Act, 2013 including Indian Accounting Standards (Ind AS) and Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

Secretarial Standards:

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

22. Loans, Guarantees or Investments

Your Company is engaged in Exploration & Production (E&P) business which is covered under the exemption provided under

Section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investments made or guarantee or security given by the Company to subsidiaries and associates were not reported.

23. Deposits:

Your Company has not accepted any deposit during the year. Further, there was no outstanding deposit and/or unpaid or unclaimed principal amount or interest against any deposit either at the beginning or at the end of FY’22.

24. Credit Rating of Securities:

Details of the Credit Ratings of Debt Securities of the Company as on 31 March 2022:

25.Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placed in the Corporate Governance Report, which forms part of the Annual Report.

26. Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section 188 of the Companies Act, 2013 provided in specified form AOC-2 is enclosed as Annexure - B.

27. Subsidiaries:A. ONGC Videsh Limited

ONGC Videsh Ltd, the wholly-owned subsidiary of your Company for carrying on E&P activities outside India, had participation as on 1 April 2022 in 35 oil and gas projects in 15 countries., viz. -Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6 projects), Russia (3 projects), South Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects) and Vietnam (2 projects).

ONGC Videsh portfolio comprised of 14 producing, 4 discovered/ under development, 14 exploration and 3 pipeline projects. ONGC Videsh was Operator in 12 projects, Joint Operator in 6 projects and non-operator in the remaining 17 projects. ONGC Videsh share in production of oil and oil equivalent gas (O OEG) is provided under the heading ‘Production from Overseas Assets by ONGC Videsh’ in para 11 above.

Gross consolidated revenue of ONGC Videsh for FY’22 was ''173,220 million (against ''119,558 million during FY’21) and the PAT registered was ''15,892 million during FY’22 as against ''18,910 million during FY’21. The decrease in profit is mainly on account of higher impairment.

Significant events in the area of Exploration & Operations:

a. CPO-5 Block:

Development wells Indico-4 & Indico-5 drilled in January and March 2022 respectively and both wells are now producing. Thus a total of 11 exploratory wells have been drilled, with 5 wells commercially producing hydrocarbons. CPO-5 block ended the year with a production of 21,000 bopd, making it a significant exploratory success for ONGC Videsh . DOC (Declaration of commerciality) for Indico Field submitted to ANH on 19 August 2021 & Field Development Plan on 18 November 2021.

b. Lower Zakum Concession:

To achieve production of 450 KBD by 2025 and 500 KBD by 2028, execution of 34" New Main Gas Line (NMGL) project to

accommodate excess gas beyond capacity of existing 18" Main Gas Line has been taken up. The line is expected to be ready by end of 2023.

c. ACG Azerbaijan:

ACG achieved milestone of 4 billionth barrel of oil production on 18 September 2021. Chirag Gas Lift Project under Chirag Turnaround completed on 23 December 2021 in 23 days and put on full production 2 days ahead of the Schedule.

d. GPOC/SPOC South Sudan:

After a prolonged shutdown since December 2013, First Oil achieved from SPOC on 30 May 2021. Export to Port Sudan and blending into Nile Blend started on 24 July 2021.

e. BM-SEAL-4 Brazil:

BM SEAL-4 Project Development timeline which was earlier postponed by 03 years has been advanced by about 02 years bringing the first oil from June 2029 to March 2027. The DoC of BM-SEAL-4 block was submitted to the regulator (ANP) on 30 December 2021.

f. MECL Colombia:

Nare contract Association has expired on 4 November 2021.

g. Imperial Energy Russia:

Start-up of Associated Petroleum Gas (APG) utilization Plant, Snezhnoye Field: In sync with APG Plant start-up in March 2021, opening of closed high Gas-Oil Ratio( GOR) wells of Snezhnoye field led to increase in oil production by about 1,000 bopd. Booster Compressor was integrated with APG Plant in June 2021.

h. Rovuma Area-1:

Due to the insurgency activities that took place near the project site since 24 March 2021 onwards, operator on 22 April 2021 declared Force Majeure (FM) under Joint Operating Agreement. Subsequently, Area 1 consortium declared FM under Exploration Production Concession Contract on 11 May 2021. Further Area 1 Project also declared FM under other key agreements viz. Area 4 Interface agreements, EPC and EPCI contracts, LNG Sale Purchase Agreements (SPAs), Marine Concessions, Assignments of Exploitation agreements etc.

• The Project site is currently in Preservation mode with no Project personnel permanently allowed on site. Counter insurgency operations by Southern African Development Community forces and Rwandan Security Forces were in progress in coordination with Host Govt Security Forces.

• Operator in December 2021 concluded discussions with EPC & EPCI contractors and agreed on project stoppage and storage costs. Operator indicated confidence to restart the project in H2 of CY 2022.

i. Myanmar A1 & A3:

Mahar Appraisal & Exploration program: Discovery in Mahar prospect, under new exploration program in Block A-3, has added GIIP 1,056 BCF (2C). Currently Reserve estimation of Mahar is in progress. The first gas from Mahar is planned in 2027.

j. Vietnam Block 06.1:

PSC Extension: PSC is expiring on 18 May 2023. Foreign partners are in negotiation with the regulator/Govt. of Vietnam to extend the PSC for further 16 years to exploit clastic reserves.

k. Bangladesh Blocks:

SS-04: Drilling of onshore exploratory well, Kanchan-1X (spudded on 29 September 2021) with a TD of 4230m was successfully completed in line with PSC commitment. The well is plugged & abandoned due to poor hydrocarbon prospectivity.

B. Hindustan Petroleum Corporation Limited (HPCL)

Your Company held 54.90% equity shares in HPCL on 31 March 2022 and HPCL is a Schedule ‘A’, Maharatna, and listed entity. HPCL owns and operates 2 major refineries - one at Mumbai (9.5 million metric tonnes per annum - MMTPA) and the other one at Visakhapatnam (8.3 MMTPA). It also owns and operates the largest Lube Refinery in the country with a capacity of 428 TMT (thousand metric tonne). HPCL has a vast marketing network of Supply & Distribution infrastructure comprising of Terminals, Installations, Tap Off Points, LPG Bottling Plants, Aviation Service Facilities, Lube

Blending plants, Lube depots and various customer touchpoints across the country. HPCL has its Research & Development Centre named ‘HP Green R&D Centre’ in Bengaluru.

During FY’22, HPCL refineries at Mumbai and Visakhapatnam achieved combined refining thruput of 13.97 MMT HPCL achieved sales volume of 39.14 MMT compared to previous year’s sales of 36.59 MMT With Highest ever LPG Sales of 7.7 MMT during FY22, HPCL continued to be India’s second largest LPG marketer registering a growth of 4.4% over FY’21. During the year, HPCL crossed a key milestone of 20,000 Retail Outlets with commissioning of 1,391 Retail outlets during FY22 taking the total Retail Outlets to 20,025. Further, 51 new LPG distributorships were commissioned during the year taking the total number of distributors to 6,243 as of 31 March 2022.

The combined Gross Refining Marging (GRM) for HPCL Refineries for FY’22 worked out to USD 7.19 /bbl compared to USD 3.86 /bbl in the corresponding previous year.

During FY’22, HPCL recorded profit After Tax (PAT) of ''63,826 million as compared to ''106,639 million for the previous year. Revenue from operations for the FY’22 was ''3,738,967 million as compared to ''2,703,263 million during the previous year. HPCL has proposed a final dividend of '' 14 per share for approval of shareholders for FY’22.

C. Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company held 71.63 % equity shares in MRPL, a Schedule ‘A’ Mini Ratna company and listed entity, which is a single location 15 MMTPA Refinery. Further, HPCL, also holds 16.95% equity shares in MRPL.

MRPL’s refinery is established with a versatile design with complex secondary processing units and a high flexibility to process Crudes of various API, delivering a variety of quality products. Refining Net throughput of MRPL during FY’22 increased by almost 31% to 15.05 MMT against 11.50 MMT during FY’21.

In a remarkable turnaround, MRPL registered a standalone turnover of '' 860,637 million ('' 507,958 million in FY’21) and recorded profit of '' 29,553 million (against loss of ''7,612 million in FY’21) during FY’22.

In FY’22, GRM for MRPL was USD 8.72 /bbl against USD 3.71/ bbl during FY’21. MRPL also achieved a 100.17% capacity utilization against capacity utilization of 76.55% in FY’21.

Highest ever production of Polypropylene (460 TMT), LPG(1049 TMT) and MS ( 1722 TMT) were achieved during FY22. Further, it successfully commissioned its 30 MLD desalination plant in Dec. 2021 which would reduce its dependence to river water.

Amalgamation of ONGC Mangalore Petrochemicals Limited (OMPL) with MRPL:

As a part of reorganization of the Group, OMPL has been merged with MRPL with effect from April 1, 2021 (‘the appointed date’) in terms of scheme of Amalgamation approved by the Ministry of Corporate Affairs vide order dated 14 April 2022.

D. Petronet MHB Ltd (PMHBL)

Your company, together with its subsidiary HPCL, hold equity shares of 49.996% each in PMHBL. With your Company’s holding of 54.9% in HPCL, the extent of its holding in PMHBL comes to 77.44% and makes PHMBL a subsidiary of ONGC. PMHBL owns and operates Mangalore - Hassan - Bengaluru JV pipeline (362.3 Km) to transport MRPL’s petroleum products to various parts of Karnataka State.

PMHBL achieved a thruput of 2.841 MMT in FY’22 against 2.139 MMT in FY’21and reported total revenue of ''1,282 million in FY’22 (''1,113 million in FY’21) and recorded a net profit (PAT) of ''603 million in FY’22 (''518 million in FY’21).

Associates and Joint Ventures:-E. ONGC Petro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ and incorporated in 2006 for utilizing in-house production of C2-C3 and Naphtha from Hazira and Uran units of your Company. Your Company, GAIL and GSPC held 49.36%, 49.21% and 1.43% of equity shares of OPaL respectively on 31 March 2022.

During FY’22, Revenue from operations of OPaL was ''160,475 million (''114,860 million in FY’21) and posted loss after tax of ''5,347 million against loss of '' 7,974 million in FY’21.

F. ONGC Tripura Power Company Limited (OTPC)

OTPC was incorporated in 2004 as a joint venture of your Company. Your Company held 50% of its shares as on 31 March 2022.

OTPC has a 726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura with two generating units with equal capacity. The basic objective of the project is to monetize idle gas assets of your Company in landlocked Tripura State and to boost exploratory efforts in the region.

Average Plant load factor for FY’22 was about 65% as unit I was under planned shutdown for annual inspection for 104 days and there was a drop in power generation from 5,090 Million Units (MU) in FY’21 to 4,124 MU in FY’22.

Consolidated revenue from operations during FY’22 was ''12,632 million (''16,456 million in FY’21) and consolidated profit after tax (PAT) was ''1,108 million during FY’’22 (''2,241 million during FY’21).

G. ONGC TERI Biotech Limited (OTBL)

OTBL is a JV incorporated in 2007 by your Company (49.98%) along with The Energy Research Institute (TERI) (48.02%) and the remaining 2% shares are held by individuals. OTBL has developed various Biotechnical Solutions for oil and gas Industry through collaborative researches involving the Company and TERI.

Revenue from operations of OTBL during FY’22 was ''188 million (''270 million in FY’21) and profit after tax (PAT) was ''86 million during FY’22 (''88 million during FY’21).

H. Dahej SEZ Limited (DSL)

DSL, a 50:50 JV of your Company along with Gujarat Industrial Development Corporation (GIDC), was incorporated in 2004 for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as a value-chain integration project in this SEZ, which serves as feeder unit to OPaL, JV of your Company.

Revenue from Operations of DSL during FY’22 was ''671 million (provisional) against ''624 million in FY’21 (audited) and PAT was ''470 million during FY’22 (provisional) against ''345 million (audited) during FY’21.

I. Mangalore SEZ Limited (MSEZL)

MSEZ is a JV, under Special Economic Zone and was promoted by your Company with an equity stake of 26%. MSEZ, was incorporated in 2006 for development of necessary infrastructure to facilitate and locate industrial establishments. MSEZ is operational since April 2015.

Total Revenue from operations of MSEZ during FY’22 was ''1,924 million (''1,651 million in FY’21) and loss after tax of '' 199 million during FY’22 (Net loss of '' 321 million during FY’21).

J. Pawan Hans Limited (PHL)

PHL, is an Associate of the Company, with 49% holdings, and the Government of India holding remaining 51%. PHL was formed primarily for catering to the logistic requirements of offshore and other remote area oil fields. PHL is a Mini Ratna-I Category PSU, having fleet of 43 helicopters. The Government of India is in the process of identifying a strategic investor for sale of its entire holding and hence your Company has also decided to exit from PHL along with the Government.

K. Petronet LNG Limited (PLL)

Petronet LNG Limited (PLL), an associate of your Company, which was incorporated in 1998 with 12.50% equity holding along with identical stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL, is a listed Company. PLL, the largest company in the country in LNG business, has set up the country’s first LNG receiving and regasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. While the plant at Dahej terminal has 17.5 MMTPA capacity, the Kochi terminal has capacity of 5 MMTPA.

During FY’22, PLL recorded revenue from operations of ''431,686 million and Profit after tax (PAT) of ''33,524 million. PLL paid a special dividend of '' 7 per share and has proposed a final dividend of ''4.50 per share for FY’22.

L. Indradhanush Gas Grid Limited (IGGL)

Your Company has subscribed 20% equity capital in IGGL, a JV company promoted by your company in association with IOCL, GAIL, OIL and NRL. IGGL was incorporated in 2018 for the purpose of laying 1,656 KM pipeline covering north-east states with a Capex of '' 92,650 million. MoPNG has approved Viability Gap Funding (VGF) of '' 55,590 million which is 60% of the project cost. Surveying, ROU acquisition and Pipeline laying in various sections is under progress. Physical progress of 42.94% has been achived till 31 March 2022 with a cumulative financial expenditure of ''19,060 million. Financial progress of 20.57% has been achieved till FY’22 as against the schedule of 20.54%

M. Rohini Heliport Limited (RHL):

Your Company has subscribed 49% equity capital in Rohini Heliport Limited with Government of India’s stake as 51%, RHL is a mirror company of Pawan Hans Limited, incorporated in 2019 for enabling disinvestment of PHL.

N. Companies Which Have become/ ceased to be Company’s Subsidiaries, Joint Ventures And Associates Companies during FY’22

a) Companies which have become subsidiaries: NIL.

b) Companies which have ceased to be subsidiaries: NIL.

Your Company sold its entire equity stake in OMPL to MRPL in December 2020 to facilitate merger of OMPL with MRPL. During FY’22, OMPL merged with MRPL w.e.f. 1 April 2021 (Appointed Date) vide order of MCA dated 14 April 2021.

c) Companies which have become a joint venture or associate: NIL.

d) Companies which have ceased to be a joint venture or associate: NIL

28. Make in India

To promote "Atmanirbhar Bharat", ONGC has introduced Development Order Policy in December 2020 for goods and services after delinking it from routine tender process to make the

process easier and continuous. The policy enables vendor to offer product at any point of time.

Two rounds of Expression of Interest were floated in January 2021 and January 2022 respectlively. ONGC has localized 14 products through 11 successful development orders, another 16 products are in development by 12 Indian manufacturers. Local vendors have been developed for products like Premium casings and tubing, Solid Control Equipment and Drill Pipes, amounting to annual offtake of nearly ''8,200 million.

Oxygen Concentrators

During the second wave of pandemic, ONGC was entrusted with the responsibility of procurement & supply of 1 lakh Oxygen Concentrators under PM-CARES in the month of May 2021. While 28% (28,337 nos.) were sourced from abroad, balance 72% of Oxygen Concentrators were manufactured by domestic manufacturers (70,863 nos.) There was no domestic manufacturing capacity of Oxygen Concentrators in India at that time. ONGC supported eight domestic manufacturers from PSU, Private, MSE and start-ups sectors to manufacture Oxygen Concentrators of 5 LPM and 10 LPM oxygen discharge capacity. Manufacture and Supply of all 70,863 nos. were completed by these eight manufacturers.

29. ONGC Start-Up Initiative

‘ONGC Start-up Fund’, conceptualized in line with the ‘Start-up India’ initiative, launched by the Hon’ble Prime Minister of India, was established to foster, nurture and incubate new ideas related to energy sector. The Fund supports and promotes an ecosystem in the Energy Sector for entrepreneurship among the younger Indians.

ONGC Start-Up Fund supported 15 start-ups from energy sector. The financial commitment to these Start-Ups was ''486 million .

30. Health, Safety and Environment (HSE)

ONGC accords topmost priority to the Health, Safety and Environmental (HSE) management by carrying out its operations ensuring zero harm to the people or the environment. Operations of ONGC, mainly exploration and production activities, are highly hazardous and risky. HSE in ONGC’s operations is guided by HSE Policy and HSE management system. In addition there is also dedicated Environment Policy and e-waste policy.

ONGC in order to maintain highest standards, goes beyond the Regulatory requirements and practices proactive HSE Management System. The HSEMS is based on International Standards, ISO 9001, ISO 45001 and ISO 14001.

HSE Initiatives:

a) Compliance to HSE management systems, as well as to prevalent rules, regulations, guidelines and standards is checked during internal audits, being conducted by multi-disciplinary teams of the Company. The same are also checked by external authorities like Oil Industry Safety Directorate (OISD) and Directorate General of Mines Safety (DGMS).

i. Despite COVID-19 challenges, 292 ISAs were conducted in 202122, against a target of 274. The overall compliance status of ISA observations as on 31 March 2022 was 94.19 per cent.

ii. OISD, conducted audits at 76 Installations in 2021-22. The overall compliance status of the observations raised by OISD as on 31 March 2022 was 92.02 per cent.

iii. DGMS, carried out inspections at 81 Installations in 2021-22. The overall Compliance status for the contraventions raised by DGMS as on 31 March 2022 was 97.38 per cent.

b) DNV GL Energy India Pvt. Ltd. has been engaged to advise ONGC on HSE Management. The objective of this project is to identify the current gaps in the safety management system, assessment of the overall safety culture of the organization and take actions to mitigate these gaps and improve the safety culture. The pan ONGC project shall be carried out in three phases during a period of eighteen months. The first phase was completed on 6 February 2022 and the second phase has already commenced.

c) As part of employee engagement program, ONGC conducted a Safety Perception Survey from 1 to 31 December 2021. Nearly 14,217 ONGC employees and 6,396 secondary workforce participated in the survey. Based on feedbacks of the participants, steps are being taken to further strengthen the safety management system and safety culture of the organization.

d) During 2021-22, 17,154 mock drills were conducted, including 17130 ERP (Emergency Response Plan), 9 Onsite DMP (Disaster Management Plan), 12 Offsite DMP and 3 RCP (Regional Contingency Plan) mock drills.

e) Mines Vocational Training (MVT), a mandatory training as per Mines Act, is being imparted to both employees and contract personnel through in-house training centres. MVT was provided to 3,973 personnel (1,912 Company Employees and 2,061 Contract Personnel) in 2021-22.

f) In order to give impetus to near miss reporting and timely closures, awards are conferred for the best performing work centres, for motivating the Near Miss Reporting and their timely closure, every month.

g) Every quarter, Safety Champion and Safe Installation awards are being declared by Assets/ Plants/ Basins.

h) Implemented SAP based E-PTW (Electronic Permit to Work) which maintains system based checks & balances, eliminates possibility of bypass of procedures and creates trail of documentation for data analysis.

i) HSE Benchmarking of all ONGC installations has been done on various HSE parameters in SAP by designing a HSE Index.

j) The processes of MoC (Management of Change) has been streamlined and SAP based MoC module has been developed for ensuring adherence to MoC procedures.

k) Environmental Clearances: ONGC received 9 Environment Clearances (ECs) & 4 EC validity extensions for drilling of 55 exploratory wells, 33 exploratory/development wells and Conversion of 37 exploratory wells to development wells.

l) Waste Management

I. Waste Water Management: ONGC monitors the waste water usage and maintains the quality of effluent discharged conforming to statutory requirements specified for discharge of treated effluent at surface/ subsurface. The Company has 41 number of Effluent Treatment Plants across onshore work centres to treat approx. 104,000 m3/day of waste water produced during E&P operations. For Offshore effluent treatment, Produced Water Conditioners (PWCs) have been installed at process platforms. Sewage Treatment Plants for treatment of sewage water generated are also provided at offshore facilities.

II. Solid Waste Management: The Solid Waste generated in the form of oily sludge/oil contaminated soil are treated using bio-remediation technique in which oil eating consortium of bacteria is used to break down hazardous substances into non-toxic substances, thereby ensuring environmentally safe disposal of waste. It is ensured that the Total Petroleum Hydrocarbon (TPH) of the treated oily sludge

is less than 0.5% (5000 ppm) in consonance with the Hazardous and Other Wastes (Management and Trans-boundary Movement) Rules, 2016. During FY 2021-22, 26,361 Metric Tons of oily sludge/ oil contaminated waste has been bio-remediated.

m) Oil Spill Management in Offshore operations:

ONGC has a robust oil spill management system to address oil spills ranging from minor to significant volumes. The Indian Coast Guard (ICG) is designated as a central coordinating authority by the Government of India for combating oil spills in Indian waters and undertaking oil spill prevention and control. As per the National Oil Spill Disaster Contingency Plan (NOS-DCP) promulgated by ICG, ONGC is maintaining its own Tier-I oil spill response equipment and manpower onboard multi-support vessels in its operational area. For Tier-II level oil spill, ONGC is relying on Indian Coast Guard and ONGC’s mutual aid partners and for Tier-III oil spill, ONGC is maintaining participant membership of Oil Spill Response Limited (OSRL), UK, through which ONGC is having guaranteed response and access to OSRL’s worldwide resources comprising of Booms, Skimmers, Oil Spill Dispersants stockpile, storage equipment, specialized manpower etc.

In addition, ONGC has also developed its own oil spill contingency plan to deal with oil spill incidents and eventualities. ONGC conducts internal oil spill mock drills and also participates in regional and national level mock drills organized by the Indian Navy and Indian Coast Guard. Annual returns on preparedness for oil spill response is being filed annually to ICG.

31.Carbon Management and Sustainable Development

Sustainable Development is the standard template in the Company and this finds expression in our commitment to continually enhance the benchmarks of economic, environmental and social performance. The major endeavours towards corporate sustainability were as under:

Clean Development Mechanism (CDM):

Your Company had 15 CDM projects registered with the United Nations Framework Convention on Climate Change (UNFCCC) under the Kyoto protocol since 2006.

ONGC is also continuing the Verification/Renewal of existing CDM projects as well as finding opportunities for Registration of new CDM projects.

Greenhouse Gas (GHG) Accounting and Mitigation:

ONGC aims to reduce GHG emissions by focusing on improved energy efficiency. The scope-1 and scope-2 emissions during FY’22 was 9.136 MMTCO2e a reduction of about 3% from the previous year. Verification of the same would be taken up during FY’23.

Global Methane Initiative (GMI):

The GMI is an action-oriented initiative from United States Environment Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. During FY’22 survey was conducted at Ankleshwar Asset and C2- C3 Plant.

Solar and Wind energy initiatives:

The total installed capacity of renewable energy as on 31 March 2022 was about 184.3 MW (Solar: 31.3 MW and Wind: 153 MW)

ONGC has also signed an MoU with SECI for Renewable Energy Projects in Solar, Wind (onshore), Solar Parks, EV Value Chain, Green Hydrogen, Storage etc.

Replacement of conventional lights with LED lighting:

In line with the government of India’s call for promoting efficient energy use (Ujala Scheme), ONGC entered in to an MoU with Energy Efficiency Services Limited (EESL for replacement of all conventional lights in ONGC in a phased manner. However, incandescent lamps, tube lights and CFLs were immediately replaced. During FY’22, ONGC installed 41,000 LED lights making a total of around 351,000 LED lights installed so far by ONGC. This has enabled ONGC to save around 75.9 million electricity units annually, realizing annual savings of ''531 million.

Micro Turbines and Dynamic Gas Blending system:

As part of sustainability initiative, 05 Micro Turbines of aggregate capacity 460 KW and 02 Dynamic Gas Blending systems (in diesel engines of drilling rig) were taken up in different locations of ONGC taking the total to 7 Micro Turbines and 6 DGB’s.

Carbon Capture, Storage and Utilisation (CCSU)

Carbon Capture, Storage and Utilization (CCSU) is a critical CO2 emission abatement technology that can prevent large quantities of CO2 from being released into the atmosphere. Considering its benefits, ONGC entered into an MoU with Indian Oil Corporation Limited (IOCL) for CO2 based Enhanced Oil Recovery (EOR). Under this initiative, the CO2 captured from the IOCL’s Koyali refinery will be utilized for EOR from the depleting oil fields of ONGC in Gandhar field, near Vadodara. The project has the potential for sequestrating 5 to 6 million TCO2 by the year 2040.

Sustainable Water Management

ONGC adopted the policy of Sustainable Water Management (SWM) in its water management practices and also modified its policy on Rainwater Harvesting (RWH) for smooth implementation, monitoring and regular maintenance of RWH projects.

Uran Plant is in the process of setting up a 10 MLD sea water desalination plant that can be scaled up to 20 MLD in future. Although due to some technical problems the project is delayed but once functional, this plant will help not only to fulfil our fresh water demand but also reduce our dependence on Mumbai Industrial Development Corporation (MIDC) for supply of fresh water.

32. Internal Financial Control System:

Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information commensurate with the operations of the Company. Effectiveness of Internal Financial Controls is ensured through management reviews, self-assessment and independent testing by the Internal Audit Team indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls are operating effectively. The Audit Committee/ Board reviews the Internal Financial Controls to ensure its effectiveness for achieving the intended purpose. Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is placed alongwith the Financial Statements.

33. Conservation of Energy, Technology Absorption and Foreign Exchange earnings & Outgo:

The information as required under section 134(3) (m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure - C.

34. Business Responsibility and Sustainability Report

Business Responsibility and Sustainability Report (BRSR) is annexed as Annexure - D and forms part of the Board’s Report.

35. Management Discussion and Analysis Report

As per regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requierements) Regulations 2015, the Management Discussion and Analysis Report (MDAR) forms part of this Report.

36. Corporate Governance

A report on Corporate Governance as stipulated under Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and also on DPE Guidelines on Corporate Governance, 2010 forms part of the Annual Report.

37. Human Resource Development

Employees are the cornerstone of ONGC’s growth and value creation. ONGC’s HR Vision is to build and nurture a world class human capital for leadership in energy business, by continuously innovating and adopting best-in-class HR practices to support business leaders through engaged, empowered and enthused employees.

There were 27,165 employees on rolls of ONGC as on 31 March 2022. These ONGCians dedicated themselves for securing excellent performance of your Company during the year, even amidst the challenges of a global pandemic situation, through their commitment, competence and spirit of collective collaboration. Your Company’s talent management strategy is focused on building an optimal and competent workforce to meet business needs and is centered around workforce planning and talent acquisition, performance management, learning & development, career growth, succession planning, leadership development, and extending best of employee facilities, welfare benefits and work environment.

Capacity building of the workforce is a priority area, with dedicated Institutes taking care of the learning & development needs of our employees to effectively meet the challenges of E&P industry. ONGC has tie-ups with a number of national & internationals institutions, agencies and business schools for capacity building of its energy professionals.During the year, in view of the Covid-19 pandemic, learning methodologies were continued on online mode. During FY’22, 19,219 executives and 4,338 non-executives were imparted training in relevant domains, spanning 66,660 executive and 9617 non-executive training days.

Learning Management System (LMS) is one of the landmark initiatives undertaken by ONGC in recent times. A pioneer project under the Government’s Digital India Initiative, LMS portal brings competency-based learning to all ONGCians, to enable self-paced learning, continual Learning through learning pathways, world class trainings, up-to-date content and assessment-based progress. With this, ONGC has become the first PSE to onboard Learning Management System in 2022 under Mission Karmayogi launched by Hon’ble Prime Minister.

Leadership Development: ONGC has in place strategic development interventions across executive levels, to build and nurture a continual pipeline of energy leaders.

During the year, ONGC launched ‘Harvard ManageMentor’ - a management development program [e-learning] covering more than 3,100 executives. Further, to take care of development needs of the young officers, under ONGC Mentor Mentee exercise FY’22, 600 Mentors have been initiated into the mentoring journey, who are each mentoring 1-2 young executives from their respective work centre.

Digitalization of HR Processes: During the year, a number of digital initiatives were taken up towards improved employee processes, HR workflows, digitization of Trust records, etc., in line with the organization’s push for technology & digitization. ONGC has introduced IT Enabled paperless Medical Referral process system through Medical Smart Cards (ONGCCares) to regular/ retired employees & their dependents thus making the system more convenient & transparent. Further, Paperless Medical reimbursement processes and referral systems was also launched in 2021, directly impacting more than 1.5 Lakh beneficiaries, leading to considerable reduction in carbon footprint, as well as system improvement.

Employee Engagement: ONGC took up a number of employee engagement activities to promote a culture of open communication, trust, sense of belonging, team spirit, innovation and excellence. Some highlights are as follows:

• More than 50 ‘people connect’ sessions were conducted across work centres for improved engagement & interaction of key executives and seniors with work teams, with focus on youngsters.

• Annual ONGC Business Games was successfully conducted online to hone the business acumen of executives . During FY’22, a total of 279 teams and 1,116 executives participated in these games.

• ‘Abhivyakti’ engagement exercises were conducted for E0 and below level employees as focused engagement exercises, wherein more than 250 nos of employees participated in various individual and group online competitions. The participants displayed excellent digital literacy during the virtual competitions.

• A special program on Parenting and Career Guidance for employees and wards was conducted.

• The second edition of MOSAIC - Online Games was held during Nov-Dec 2021, which was participated by 139 PWD employees across ONGC and ONGC Videsh.

Employee Recognition: ONGC has a well-defined and robust Awards and Rewards scheme at Corporate as well as Work centre level, where outstanding performance of employees are recognized and rewarded.

Employee Welfare: Introduced new policies and measures such as, special dispensations to employees due to covid situation, introduction of Health Care Package for COVID-19, improvement in Group Insurance Scheme to employees, enhancement of support amount under ONGC Composite Social Security Scheme, extension ssssof medical facilities to parents of both employee and spouse working in ONGC, enhanced benefits to tenure based field employees, term based Field employees, contingent employees, etc.

Work- Life Balance: Your Company provides an enabling environment for work-life balance of its employees. Townships at many work centres have developed facilities like gymnasiums, clubs, sports facilities and music rooms. Facilities for gym, sports, yoga, library,

etc. are also provided in Offshore Living Quarters. Apart from social communities such as Officers Clubs, Employee Welfare Committees, Resident Welfare Associations, ONGC Officers’ Mahila Samiti, etc., your Company also has a unique adventure wing named ‘ONGC Himalayan Association’ which organizes adventure programmes like mountaineering, trekking, water rafting, etc. which adds towards employee morale, engagement, team spirit, camaraderie, stress management and spirit to explore the unknown.

Health and Wellbeing: During the pandemic, ONGC ensured health, safety & well-being of its workforce and provided full support to all its employees. As a responsible corporate citizen, ONGC also enhanced the health insurance coverage for its secondary workforce.

During the 2nd wave of Covid pandemic, ONGC put in place Covid-care facilities at its work centres for handling emergency patients. ONGC ensured home delivery of medicines to needy patients. 24x7 Helpline Numbers and a digital COVID Dashboard operationalized to help and assist employees and their family members. A number of health talks & webinars on covid, health, mental well-being, coping with loss, etc were arranged. Covid Sewa initiative was launched to bring together ONGC employees & their family members to volunteer themselves.Superannuated Doctors of ONGC came forward to volunteer to extend help through tele-consultation to ONGC employees on Covid-related and other medical issues.

Vaccination camps were organized at various work locations across the country for employees and secondary workforce. Continuous communication & connect of top leadership with operations teams at ONGC locations across the country was ensured to reinforce employee safety, boost workforce morale and provide all necessary support for smooth operations.

Employee Welfare Trusts

Your Company has established following Trusts for welfare and social security of employees:-

Employees Contributory Provident Fund (ECPF): During the pandemic, the Trust settled one of the highest NRA-Pandemic/ Epidemic claims (more than 19,000 cases amounting approx. '' 4,710 million since April 2020) in the country which was appreciated by the Employees Provident Fund Organisation.

Post Retirement Benefit Scheme (PRBS) Trust manages the pension fund of employees of your company.

Composite Social Security Scheme (CSSS) formulated by your Company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee while in service.

Gratuity Fund Trust established for payment of gratuity as per the provisions of the Gratuity Act.

ONGC Medical Benefits (PRMB) Trust has been established to manage the funds for the post-retirement medical benefits of employees.

ONGC Leave Encashment Trust has been established to manage the funds for the Earned Leave encashment benefits of employees.

Your Company also has a ‘Sahyog Trust’ for its Sahyog Yojana to provide ex-gratia financial grant for sustenance, medical assistance and treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the welfare of the workforce and their kin, who do not have adequate means of support. Beneficiaries under this scheme include casual, contingent, daily rated, part-time, adhoc, contract appointees, and

tenure-based employees, apprentices and trainees engaged by your Company besides regular and past employees. Under the scheme, an amount of '' 36.36 Million was disbursed by the Trust during FY’22 to 836 beneficiaries.

Your Company has instituted Asha Kiran Scheme to meet the emergency needs of the ex-employees retired prior to 01.01.2007. The scheme was launched as per DPE guidelines with a corpus of 1.5% of profit before tax. During FY’22,. '' 1,373 million was spent on this scheme covering 13,099 beneficiaries.

Your company has initiated Digital Life Certificate (DLC), that has simplified submission of life certificate by retired employees. A module has been developed in collaboration with NIC, where any retired employee/ pensioner can submit his/her life certificate with the help of biometrics without physically going to the pension disbursing authority and get pension directly credited to the respective bank account.

Implementation of Govt. Directives for Priority Section

ONGC is fully cognizant of its responsibility towards welfare of SC and ST communities and complies with the Government directives. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15 percent and 11 percent respectively as on 31.03.2022.

Your Company and carried out following welfare activities for their betterment in and around its operational areas:-

Annual Component Plan: Under Annual Component Plan for SC/ ST, every year allocation of '' 200 Million is made. Out of this, '' 60 Million is distributed amongst all work-centres of the Company for taking up welfare activities for communities in and around areas of the Company’s operations. In addition, '' 140 Million is managed centrally, and is earmarked for special projects/ proposals/ schemes for the welfare of areas/ persons belonging to SC/ST communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical & Health Care.

Scholarship to meritorious students: Your Company provides 1,000 scholarships for meritorious SC and ST students for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The scholarships have been equally divided for both Boys and Girls students. The scholarship amount is extended up to '' 48,000/- per annum per student subject to conditions of the scheme.

Diversity & Inclusion: ONGC is an equal opportunity employer and ensures that there is zero discrimination against any employee, whether based on gender, religion, caste, ethnicity, language, background, age or abilities, etc.

Women Development: Women employees constituted 7.5 per cent of your Company’s workforce as on 31.03.2022. ONGC has put in place a number of women-friendly policies and practices in the organisation to support, promote and nurture women in the company. ONGC organizes special Leadership development programs for women executives through reputed Institutes to groom women executives for leadership roles. A new focused programme on Women Leadership Development - Urjasvini, was launched by ONGC during FY’22, to mentor and develop high-potential women executives for senior management roles.

An initiative called Voice of Oil Women (VOW) was started in January 2022, wherein ONGC’s Women Development Forum (WDF) Chapters, organise online sessions every month for knowledge sharing, learning and networking amongst the women fraternity.

A new portal exclusively for Women Development Forum of ONGC was launched on International Women’s Day on 8th March 2022.

Inclusion of Persons with Disabilities (PwD): ONGC ensures requisite facilities and infrastructure to enable Persons with Disabilities to effectively discharge their duties. Apart from reservation in recruitment, they are provided with special facilities and amenities in terms of suitable job assignments, assistive devices, preference in transfer/ posting, accommodation, special casual leave, free accessibility and barrier free environment at work place. Special events such as Para Games and Mosaic online games are conducted for PwD employees of the Company.

Disclosure under the Sexual Harassment: Your Company has complied with the provisions under the Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013 including constitution of Internal Complaints Committees (ICC) for dealing with complaints of sexual harassment of women at workplace. Skill enhancement programs were conducted for members of ICC to equip them with requisite skills for enquiring into complaints. Awareness programme was also extended for the secondary workforce of the Company.

Details of complaints under Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013 are provided under POSH framework of Integrated Report.

38. Industrial Relations

Your Company maintained harmonious Industrial Relations throughout the year. Man-days loss due to internal industrial action was reported as ‘NIL’ for FY’22.

39. Compliance under the Right to Information Act, 2005

Your Company has a well-defined mechanism in place to deal with the RTI applications received under the Right to Information Act 2005. Your Company has a designated senior level officer as a ‘Nodal Officer’ to oversee its implementation. The applications received are processed by 23 executives designated as ‘Central Public Information Officers’ (CPIOs) in various work centres across the Company. The particulars of all the quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the Company website (www.ongcindia.com) for information of the general public.

Your Company received 2,259 applications (including 35 transferred by other Public Authorities) during FY’22, and 183 RTI applications were carried forward from FY’21. Against these applications, information as sought were provided, 7 applications were rejected and 35 applications were transferred to other public authorities, in accordance with the provisions of the RTI Act 2005. There were 422 first appeals, which were disposed-off during the period. Total pending request were 183 as on 31.03.2022.

40. Implementation of Official Language Policy

Your Company continued its concerted efforts for promotion and implementation of Official Language. In this regard, some of the efforts taken during the year were:

• Unicode Hindi software installed in all offices.

• Hindi workshops conducted at regular intervals in all work centres.

• Hindi technical seminars/Webinars, Kavi Goshties, Kavi Sammelan and Hindi plays were organised at various work centres.

• Various programme conducted at all work centres of the Company during Rajbhasha Fortnight (14th to 28th September 2021) and Vishva Hindi Divas (10.01.2022)

• Hindi Teaching Scheme of Government of India was implemented effectively at all regional work centres of the company. Hindi e-magazines were published by all work centres.

• E-Roster of Employees regarding working knowledge of Hindi has been put in place.

• Paperless office has been made bilingual for effective implementation of Official Language policy. Besides, Unicode has been installed in SAP platform for enabling bilingual working.

• A bilingual handbook has been prepared and uploaded on reports.ongc.co.in for ready reference on OL policy

• To achieve the annual target of Official Language by using the applications of Hindi Computing tools, a special workshop/ webinar has been conducted for Official Language Executives posted at different work centres of ONGC in association with C-DAC, Pune.

41. Sports

Your Company continues the support for development of sports in the country by providing employment opportunities to sportspersons and also granting scholarships to budding talents in 22 games. Your Company sponsored various sports associations/ federations/ sports bodies for organizing sports events as well as developing sporting infrastructure. The support has enabled many sportspersons to achieve, excel and bring home laurels for the nation and the organization.

Some of the significant achievements of our sportspersons during the year were as follows:

• Seven ONGC sports persons represented country in Tokyo Olympics:

• Apurvi Chandela : Shooting

• Ankita Raina : Tennis

• G Sathiyan : Table Tennis

• B. Sai Praneet : Badminton

• Gurjant Singh : Hockey

• Sumit : Hockey

• Mandeep Singh : Hockey

All three ONGC Hockey players were core group members of Senior India Men team and were instrumental in India winning Olympic Bronze medal after a gap of 41 years.

• Five ONGCians were conferred with Arjuna Awards for the year 2021 by President of India:

• Arpinder Singh - Athletics

• Ankita Raina - Tennis

• Gurjant Singh, Sumit & Mandeep Singh - Hockey

• The total number of National Awardees in the organization stand at 60:

• Padma Bhushan - 1

• Khel Ratna - 2

• Padma Shri - 6

• Arjuna Award - 49

• Dhyanchand Award - 2

Other Highlights

• Pankaj Advani won IBSF World 6 Red Cup held at Doha, Qatar in September 2021and ACBS Asian Snooker Championship at Doha.

• ONGCian International Tennis star VM Ranjeet won two Singles Title for the year by winning the AITA Ranking tournament 2021 in Gurugram.

• ONGCian International Tennis star Vishnu Vardhan won Singles titles of AITA National Ranking tennis tournament in Bengaluru in September 2021.

• ONGCian Kirpal Singh won Gold medal in Discus throw in 60th National Open Athletics Championship held at Warangal (Telangana) in September 2021. He also won Gold Medal in ‘Discus Throw’ by breaking meet record with throw of 61.83 meters in National Federation Cup Senior Athletics Championship held at Calicut (Kerala) in March 2022, and qualified for Asian Games 2022.

• ONGCian’s Shiva Thapa & Sumit Sangwan, won the Gold & Silver medal respectively in the 5th Elite National Boxing Championship at IIS Bellary (Karnataka) in September 2021.

• ONGCian Shiv Thapa becomes first Indian Boxer who consecutively won his 5th medal in Asian Boxing Championship.

• ONGCian Pankaj Advani & Dhruv Sitwala won Gold & Silver Medal respectively in Asian Billiards Championship at Doha, Qatar in March 2022.

• ONGCian M R Poovamma secured Silver Medal in 400 meters event at Calicut (Kerala) in National Federation Cup Senior Athletics Championship held in March 2022.

• ONGCian Ankita Raina won double title in ITF World Tennis tour event in Australia in March 2022.

• ONGCian Yuki Bhambri won singles title in ITF World Tennis tour event in Delhi in March 2022.

• ONGCian Siddhant Thingalaya, National record holder won Gold Medal in 110 meters hurdles event in National Federation Cup Senior Athletics Championship held in March 2022 at Calicut (Kerala),

• Chess Grand master K Sasikiran won the Fagernes Open Chess Championship at Norway in April 2022.

42. Corporate Social Responsibility (CSR)

As one of India’s foremost Nation Builders, your Company is committed towards its social responsibility. The Annual Report on CSR activities is annexed as Annexure-E.

43. Regulatory or Courts order

During FY’22, there was no order or direction of any court or tribunal or regulatory authority either affecting Company’s status as a going concern or which significantly affected Company’s business operations.

44. Significant development after closure of financial year

Government of India vide Excise Notification No. 05/2022-CE dated 30.06.2022 has levied Special Additional Excise Duty (SAED) on manufacture of Petroleum Crude at the rate of '' 23,250 per tonne (approx. USD40/bbl). Such levy is effective from 01.07.2022 which is payable in addition to the existing levies. It is understood from the media reports that this levy has been imposed due to extra-ordinary situation prevailing in the global energy markets. The Company has suitably represented to the Govt. of India for review of such levy.

45. Directors’ Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

a) In the preparation of the annual accounts, the applicable accounting standards were followed and there was no material departures from the same;

b) The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as on 31 March 2022 and of the profit of the Company for the year ended on that date;

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Directors had prepared the annual accounts of the Company on a ‘going concern’ basis;

e) The Directors had laid down internal financial controls which were being followed by the Company and that such internal financial controls were adequate and were operating effectively; and

f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

46. Annual Return

Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act, 2013 Annual Return of the Company is placed at https://ongcindia.com/web/eng/investors/annual-return

47. Particulars of Employees

Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued thereunder are not applicable.

The terms and conditions of the appointment of Whole-time Directors are subject to the applicable guidelines issued by the Department of Public Enterprises (DPE), Government of India.

48. Audit Committee

In compliance with Section 177(8) of the Companies Act, 2013 & Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, 2010 the details regarding Audit Committee is provided under Corporate Governance Report which forms part of Annual Report.

There was no instance during FY’22, where the Board had not accepted any recommendation of the Audit Committee.

49. Vigil Mechanism:

Your Company has established Whistle Blower Policy / Vigil Mechanism to report genuine concerns about ethical behaviour, actual or suspected fraud, violation of Code of conduct and also instances of leak of unplublished price sensitive information. The said vigil mechanism provides for adequate safeguards against victimization of persons who use the mechanism and has provision for direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases.

Policy of the Company may be accessed at https://ongcindia.com/ web/eng/investors/policies50. Vigilance Functions:

Your Company has a full-fledged Vigilance Department headed by Chief Vigilance Officer. The Department operates on the guidelines of Central Vigilance Commission on Vigilance management in Public Sector Enterprises and is guided further by instructions issued by the Department of Personnel and Training and MoPNG from time to time.

Complaints are handled as per the complaint handling policies stipulated in Vigilance Manual issued by the Central Vigilance Commission. The prime focus of Vigilance activities has been Preventive and Participative Vigilance by having regular interaction with employees and other stakeholders to spread awareness among the masses.

An account of vigilance cases disposed during the year and cases pending as on 01.04.2022 is as under:

Nature of cases	Number of cases
	disposed-off during the financial year	Pending as on 31.03.2022
Major penalty	20	24
Minor penalty	19	06

51. Risk Management Policy and Implementation:

The Company has a Board approved Risk Management Policy. Risk framework and Risk portfolio are periodically monitored by the Risk Management Committee, Audit Committee and the Board.

52. Auditors

The Statutory Auditors of your Company are appointed by the Comptroller and Auditor General of India (CAG). There were 6 Practising Chartered Accountants firms namely M/s. G.M. Kapadia & Co., M/s. R. Gopal & Associates, M/s. SARC & Associates, M/s. Kalani & Co., M/s. R.G.N. Price & Co. and M/s S. Bhandari & Co. who were appointed as Joint Statutory Auditors of the Company for FY’22.

The Statutory Auditors have been paid a total remuneration of '' 56.64 Million towards audit fees, certification and other services. The above fees are inclusive of applicable service tax/GST but exclusive of re-imbursement of travelling and out of pocket expenses.

Auditors’ Report on the Accounts

Statutory Auditors Reports and the comments of CAG on standalone and consolidated accounts of the Company are placed along with respective financial statements for FY’22. There is no qualification in the Statutory Auditors Reports on the Financial Statements of the Company for FY’22.

The comments of Comptroller & Auditor General of India (C&AG) and the reply of the managment thereto form part of this Report and are attached as per Annexure - F. During FY’22, there has not been any fraud reported by the Auditors of the Company.

53. C&AG Audit on other matters:

As at 31 March 2022, there were twenty four pending published paras related to the C&AG audit. These related to payment of Stagnation Relief, Non-recovery of Perquisite Tax, Payment towards encashment of Half pay Leave/Earned Leave, IT audit on FICO module of SAP, Delay in appraisal and non-monetisation of the

discoveries in KG DWN 98/2 Block, Non Achievement of objective of acquiring Coal Bed Methane (CBM) Blocks, Utilisation of Rigs in ONGC, Avoidable extra expenditure due to delay in procurement of casing pipes, Not obtaining the share of cost of Immediate Support Vessels purchased by ONGC for security of offshore assets from E&P operators, Non recovery of pending cash calls, Construction of Toilets in schools by CPSEs, Loss of returns to ONGC due to adoption of financing mechanism to maintain the status of OPaL as a non-public sector undertaking, Avoidable payment of equipment standby rentals, Supply of gas without security resulted in nonrecovery of dues, etc.

These audit Paras have been suitably replied and the same are under review of MoPNG or CAG.

54. Cost Audit

There were 6 cost accountants firms, namely M/s. Bandopadhyaya Bhaumik & Co., M/s. N. D. Birla & Co., M/s. Joshi Apte & Associates, M/s. ABK & Associates, M/s. Sanjay Gupta & Associates and M/s. Rao, Murthy & Associates appointed by the Board as Joint Cost Auditors of the Company for FY’22. Necessary cost audit report shall be prepared by the said auditors and filed with the Central Government as per requirements under the Companies Act, 2013.

55. Secretarial Audit

Your Company had engaged M/s. JMC & Associates, Practising Company Secretaries as Secretarial Auditors for FY’22. Secretarial Audit Report is annexed as Annexure - G.

Reply of management to the qualifications made in the Secretarial Audit Report are as under:

Board Composition, Audit Committee and Nomination & Remuneration Committee:

The Company, being a CPSE, composition of its Board of Directors is the prerogative of the President of India as provided under the Articles of Association of the Company.

The Company made appointment of 4 Independent Directors including one woman Independent Director on 14 November 2021. Further, the Company made appointment of one additional Independent Director on 31 December, 2021 and another one on 2 February 2022.

Upon appointment of requisite number of Independent Directors, Audit Committee and Nomination & Remuneration Committee were re-constituted and accordingly the Company became compliant with the requirements w.r.t. composition of Board and above-mentioned committees.

56. Changes in Board of Directors and Key Managerial Personnel

Being a Government Company, policy on directors’ appointment and remuneration is not applicable and also evaluation of their performance is exempted under the Companies Act, 2013.

Details of Appointments/ Cessation of Directors and KMPs are as under:

Changes in the Board/ Key Managerial Personnel of the Company during the year and up-to date of the Report are as under:

• Ms. Pomila Jaspal has been appointed as Director (Finance) & Chief Financial Officer (CFO) of the Company w.e.f. 19 April 2022.

• Mr. Syamchand Ghosh, Mr. Manish Pareek, Smt. Reena Jaitly, Mr. Vysyaraju Ajit Kumar Raju have been appointed as Independent Directors of the Company w.e.f. 14 November 2021.

• Dr. Prabhaskar Rai has been appointed as Independent Director of the Company w.e.f. 31 December 2021.

• Dr. Madhav Singh has been appointed as Independent Director of the Company w.e.f. 2 February 2022.

• Mr. Gudey Srinivas, IAS, Additional Secretary and Financial Adviser in the Ministry of Petroleum & Natural Gas has been appointed as the Government Nominee Director of the Company w.e.f. 14.06.2022.

• Mr. Anuarg Sharma, Director (Onshore) was also Chief Financial Officer (CFO) of the Company during 21.01.2022 to 31.03.2022.

• Mr. Rajni Kant has been appointed as the Company Secretary w.e.f. 29.06.2021.

• Mr. Vivek Chandrakant Tongaonkar was CFO during the period from 01.04.2021 to 31.12.2021.

• Mr. Subhash Kumar, ceased to be Chairman & Managing Director/ Chief Executive Officer and Director (Finance) of the Company w.e.f. 01.01.2022 upon his superannuation on

31.12.2021.

• Mr. Rajesh Aggarwal ceased to be Government Nominee Director on the Board w.e.f. 24.09.2021.

• Mr. Amar Nath ceased to be Government Nominee Director on the Board w.e.f. 14.05.2022.

• Mr. Amitava Bhattacharyya ceased to be Independent Director of the Company on completion of his tenure on 11.07.2022.

• Mr. M E V Selvamm ceased to be Company Secretary on

25.06.2021.

• The Board places on record its appreciation for commendable contribution made by Mr. Subhash Kumar, Mr. Rajesh Aggarwal, Mr. Amar Nath and Mr. Amitava Bhattacharyya during their tenure on the Board of your Company.

57. Declaration by Independent Directors:

The Company has received the declaration from Independent Directors confirming that they met the criteria prescribed under the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

58. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and all members of the ONGC Family for their faith, trust and confidence reposed in the Board. Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, in spite of the challenging and unprecedented pandemic situation, to ensure that the Company continues to sustain, grow and excel.

On behalf of the Board of Directors

Sd/-

Dr. Alka Mittal

Chairman and Managing Director (Addl. Charge)

New Delhi 3 August 2022

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Mar 31, 2019

Dear Shareholders,

The Board of Directors of your Company (ONGC) are pleased to share with you the highlights, developments and the progress that your Company has made during the financial year ended 31.03.2019 and to present the 26th Annual Report on the business and operations of the Company and its Audited Statements of Accounts together with the Auditors' Report and Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.

The business environment was again marked by great uncertainty in FY'19. Disruptive socio-economic and political changes continued to affect growth in many parts of the world. In the emerging markets, economic volatility worsened as growth rates slowed and currencies weakened. In the developed markets, deflationary pressures and soft consumer demand resulted in a continuous challenging trading environment. In the face of such uncertainty, it was more important than ever to stay on course and remain loyal to our strategy, driving short-term performance while ensuring we made the right decisions to deliver our long-term goals.

We are pleased to share that, despite the uncertainty, your Company along with its group companies have registered yet another year of sustained performance. Exploration and production, our core business, set various milestones during the year. Besides that, performance in the areas where ONGC has engaged substantially also witnessed success with positive contributions.

During FY'19, on account of exploratory efforts, 137.05 Million Metric tonnes (MMt) of Oil and Oil Equivalent Gas (O+OEG) accretion to In-place Hydrocarbons (3P) from ONGC-operated areas in India has been realized. 95.42 MMt of O+OEG In-place volume (about 69.6 percent of Total In-place) have been accreted from New Discoveries and Delineation/Appraisal efforts. 41.63 MMt of O+OEG In-place volume (about 30.4 percent of Total In-place) have been accreted as an outcome of data generated through other exploratory efforts.

During the year, the Estimated Ultimate Recovery (EUR) accretion in 2P category from ONGC operated areas in India has been 63.02 MMt of O+OEG.

Accretion from JV non-operated areas in India has been 20.25 MMt (O+OEG) in In-place Volume and 11.45 MMt (O+OEG) in EUR.

Domestic crude oil and natural gas production of ONGC along with its share in the domestic joint ventures (PSC-JVs) during FY'19 has been 50.04 million metric tonnes of oil and oil equivalent gas (MMtoe) which has been almost at the same level as during FY' 18.

All joint ventures of your Company established for value-chain integration i.e. ONGC Petroadditions Ltd (OPaL), ONGC Mangalore Petrochemicals Ltd. (OMPL), ONGC Tripura Power Company Ltd (OTPC), Dahej SEZ Ltd (DSEZ), Mangalore SEZ Ltd. (MSEZ) and ONGC Teri Biotech Limited (OTBL) contributed meaningfully towards sustained endeavors of your Company for growth.

1. Major Highlights: FY'2018-19

The significant milestones achieved by your Company during FY'2018-19:

a) ONGC's standalone O+OEG production during 2018-19 was 45.86 MMtoe, an increase of 0.2% w.r.t. 2017-18 (45.79 MMtoe).

b) Natural gas production during 2018-19 was 24.75 BCM which was 5.4% more than the production during 2017-18.

c) ONGC's gas production recorded an all-time high of 71 MMSCMD in November 2018 mainly due to ramping up of production from Daman in Western offshore, Sl-Vashistha in Eastern offshore and Tripura in Onshore.

d) Production of Value Added Products (VAP) increased by 7.56% (3,641 KT 2018-19 against 3,385 KT in 2017-18).

e) 516 wells drilled during 2018-19 as compared to 503 in the year 2017-18; an increase of ~ 3 % (y-o-y basis). Drilled more than 500 wells in last three consecutive years.

f) Drilled 411 development wells (including side tracks); the highest in the history of the Company.

g) Total 17 discoveries monetized during 2018-19 including 5 discoveries (3 pool and 2 Prospect) made during 2018-19 and remaining 12 from previous years.

h) Two New Basins i.e. Vindhyan and Bengal Basins were upgraded to Category II from Category III.

i) Hon'ble Prime Minister dedicated ONGC's deep water Sl-Vasishta Development Project to the nation on 10th February 2019 at Guntur in Andhra Pradesh.

j) C2-C3 Plant, Dahej processed 5.095 million tonnes of LNG in 2018-19 against plant capacity of 5 million and produced ~ 900 KT of total annual VAP.

k) Revenue from operations was at Rs. 1,096,546 million against Rs.850,041 million in FY'18.

1) Net profit (PAT) was at Rs.267,158 million against Rs.199,453 million during FY'18.

2. Global Recognitions

Your Company has been ranked number one E&P Company in the world by Platts Top 250 Global Energy Company Rankings-2018 and 21st among global energy majors based on assets, revenues, profits and return on invested capital. The leading international business journal Forbes in its 2019 list has ranked the Company 3rd largest in India and 220th worldwide based on sales, profit, assets and market value.

ONGC has been ranked 197 in the coveted Fortune Global 500 list 2018.

3. Details of new discoveries

Your Company recorded thirteen new discoveries (six New Prospects and seven New Pools) during the year. Out of six new prospect discoveries, five were in on-land and one in offshore. Three on-land and four offshore pool discoveries were also established during the year.

Details of new discoveries

Sr. No.	Wells	Basin/ Acreage	HC Type	Prospect/ Pool	Nomination/ NELP
1	KG982NA-M-6 (AE)	KG Offshore (DW) / KG-DWN-98/2	Oil & Gas	Pool	NELP
2	Babejia-2 (BJAB)	Assam Shelf Basin / Golaghat Extn-IIA ML	Oil & Gas	Pool	Nomination
3	Rokhia-75 (ROBE)	AAFB-Tripura/ Konaban ML	Gas	Pool	Nomination
4	GS-29-AM Shift	KG Offshore SW/ GS-29 Extn PML	Oil	Pool	Nomination
5	Baramura-31 (BMDI)	AAFB-Tripura / Baramura Extn-IV PML	Gas	Pool	Nomination
6	Asokenagar-1 (Asokenagar-A)	Bengal Onland/ WB-ONN-2005/4	Gas	Prospect	NELP
7	Bantumilli North -2 (BTN-AB)	KG Onland/ Malleswaram PML	Oil & Gas	Prospect	Nomination
8	GKS091NFA#1	Kutch Offshore SW	Gas	Pool	NELP
9	Hatta-2 (B-HAT-B)	Vindhyan	Oil & Gas	Prospect	NELP
10	Jantapathar#lZ	Golaghat Extn-IIA (Addl.) ML, A&AA Basin	Gas	Prospect	Nomination
11	B-203#2	NWMH Extn. PML, Western Offshore Basin	Oil & Gas	Prospect	Nomination
12	Suryaraopeta West-1 (SUW-AA)	KG Onland/ Malleswaram PML	Oil & Gas	Prospect	Nomination
13	KGD982NA-P1-S-1	KG-DWN-98/2 block (Cluster-II	Gas	Pool	NELP

 

Total 17 discoveries have been monetized during 2018-19, including 5 discoveries (3 pool and 2 Prospect) made during 2018-19, which are in nomination blocks, and remaining 12 from the previous years.

During the year, Reserve Replacement Ratio (RRR) of your Company from domestic fields were 1.41 and 1.78 with respect to 2P and IP reserves respectively. With this, your Company has achieved Reserve Replacement Ratio (2P) of more than one for 13th consecutive years.

4. Acquisition of E&P Blocks

Your Company has been awarded five Blocks including operatorship in two blocks,under Round-1 of Open Acreage License Policy (OALP).

5. Reserve Position as on 01.04.2019 and Reserve Accretion

ONGC migrated to PRMS (Petroleum Resource Management System) as on 01.04.2019 from the earlier SPE (Society of Petroleum Engineers) Accretion of In-place hydrocarbons and EUR (Estimated Ultimate Recovery) by the Company in its operated areas and in Non-Operated areas (JV Share) during 2018-19 and position of In-place hydrocarbons and EUR (Estimated Ultimate Recovery) as on 01.04.2019 are furnished as below:

In-place Hydrocarbon volumes and Ultimate Reserves of Company operated and JV (Domestic) Fields
Accretion during the year 2018-19					Position as on 01.04.2019
Reserve Type	Â	Domestic (Operated)	JV-Domestic (ONGC Share)	Total	Domestic (Operated)	JV-Domestic (ONGC Share)	Total
In-place Hydrocarbon MMt (O+OEG)	2P	136.69	26.72	163.41	7796.54	951.84	8748.39
	3P	137.05	20.25	157.3	8977.35	1025.28	10002.63
Ultimate Reserves MMt (O+OEG)	2P	63.02	11.45	74.47	2891	117.94	3008.93
	3P	39.14	11.25	50.39	3133.3	118.29	3251.6

Note: EUR position as on 01.04.2019 (EUR=Cumulative Production + Reserves + Contingent Resources).

As per PRMS, existing remaining recoverable has been classified as Reserves and Contingent Resources. For better understanding of earlier and existing system, Reserves positions as on 01.04.2019 in both the reporting system i.e., earlier SPE and newly adopted PRMS are given below. In future, the Company will report its Reserves in PRMS format only.

Position of Reserves as on 01.04.2019 MMt (O+OEG) Total As per earlier SPE system
Category	Domestic (Operated)	JV-Domestic (ONGC Share)	Total
2P	1154.93	22.58	1177.52
3P	1397.23	22.94	1420.18

 

Position of Reserves and Contingent Resources as on 01.04.2019 MMt (O+OEG) Total As per PRMS
As per PRMS	Category	Domestic (Operated)	JV-Domestic (ONGC Share)	Total
Reserves MMt (O+OEG) Total	2P	747.67	22.58	770.26
	3P	817.52	22.94	840.46
Contingent Resources MMt (O+OEG) Total	2C	407.26	Â	407.26
	3C	579.71	Â	579.71
Contingent Resources MMt (O+OEG) Total	2P+2C	1154.93	22.58	1177.52
	3P+3C	1397.23	22.94	1420.18

The following table gives the details of reserve accretion (2P-Proved and Probable) for the last 5 years in domestic basins as well as from overseas assets:

Â	Ultimate Reserve (2P) accretion O+OEG				(in MMtoe)
Year	Domestic Assets (1)	ONGC 's share in domestic JVs (2)	Total Domestic (3)=(l) + (2)	ONGC Videsh 's Share in Foreign Assets (4)	Total (5) = (3) + (4)
2014-15	61.06	-1.03	60.03	20.03	80.06
2015-16	65.58	0.80	66.38	-7.22	59.16
2016-17	64.32	0.22	64.54	120.28	184.22
2017-18	67.83	1.02	68.85	21.56	90.41
2018-19	63.02	11.45	74.47	-20.95	53.52

Note: Reserve accretion reported in terms of 2P reserves 6. Drilling of Wells

The total number of wells drilled by your Company during 2018-19 has been 516 against 503 wells drilled during 2017-18. The details are as below:

Type of 'well		Wells drilled (No.)
		2017-18	2018-19
Exploratory (including Shale)	Â	119	105
Development		343	373
Side Tracks		41	38
Total		503	516
Â	Â	Â	Â

Out of these 516 wells, one exploratory and nineteen development wells in deep-water were drilled.

7. Oil, Gas and VAP Production

Domestic crude oil and natural gas production of ONGC along with its share in the domestic joint ventures (PSC-JVs) during FY' 19 has been 50.04 million metric tonnes of oil and oil equivalent gas (MMtoe) which has been almost at the same level as during FY' 18.

On standalone basis, ONGC's O+OEG production during 2018-19 has been 45.86 MMtoe, an increase of 0.2 per cent (45.79 MMtoe in FY' 18). On standalone basis, crude oil production from ONGC operated fields has been 21.11 million metric tonnes (MMT) against production of 22.31 MMT during FY'18. Natural Gas Production (on standalone basis) during FY' 19 has been 24.75 BCM an increase of 5.4 per cent over the production during FY' 18 (23.48 BCM). The Company has registered increase in its domestic natural gas output for third consecutive year, mainly on account of ramping up of production from Daman in Western offshore, S1 -Vashistha in Eastern offshore and Tripura Asset in onshore.

Your Company's share in domestic Joint Ventures' production was 3.12 MMT of crude oil (3.13 MMT in FY' 18) and 1.06 BCM of natural gas (1.13 BCM during FY' 18). Combining the two, total domestic production has been 24.23 MMT of oil and 25.81 BCM of gas. Production of Value Added Products (VAP) increased by 7.6%; from 3.39 MMT in FY' 18 to 3.64 MMT during the year, with contribution from C2-C3 and Hazira plants in Gujarat. The C2-C3 plant processed 5.095 MMt of LNG in 2018-19 against plant capacity of 5 MMt and produced ~ 900 KT of VAP.

Direct		Unit	Production Qty		Sales Qty		Value (Rs. In millions)
Â		Â	FY 19	FY 18	FY 19	FY 18	FY' 19	FY' 18
Crude Oil		(MMT)	24.23	25.43	22.50	23.67	775,729	603,899
Natural Gas		(BCM)	25.81	24.61	20.49	19.49	188,389	137,372
Value Added Products (VAP)	Â		Â	Â	Â	Â	Â	Â
Liquefied Petroleum Gas		000 MT	1107	1187	1109	1186	43,490	40,352
Naphtha		000 MT	1175	1176	1154	1180	46,861	38,084
Ethane-Propane		000 MT	414	356	414	356	10,063	7,502
Ethane		000 MT	455	264	456	264	10,109	7,050
Propane		000 MT	210	194	207	191	7,948	6,250
Butane		000 MT	114	103	115	103	4,470	3,423
Superior Kerosene Oil		000 MT	66	46	71	34	3,355	1,178
Others*		000 MT	99	61	58	28	2,585	692
Sub Total (VAP)		000 MT	3640	3387	3585	3342	128,881	104,531
Total		Â	Â	Â	Â	Â	1,092,999	845,802
Â	Â	Â	Â	Â	Â	Â	Â	Â

*Others include ATF, Sulphur-P, Sulphur-C, LSHS, HSD, LDO and MTO Production from Overseas Assets by ONGC Videsh

During the year, total Oil and Gas production from overseas assets has been 14.833 MMtoe of O+OEG (Oil: 10.097 MMT; Gas 4.736 BCM) in comparision to 14.164 MMtoe during FY'18; an increase of 4.7 per cent which was mainly due to incremental production from Sakhalin-1 project, Russia; Block-06.1, Vietnam; additional production from acquisition of 4 per cent stake in the Lower Zakum Concession project in UAE, from resuming of production in GPOC, South Sudan and from Exploratory success in Block CPO-5, Colombia.

Oil and Gas production of ONGC Group including contribution from PSC-JVs and Overseas assets for FY'19 was 64.88 MMtoe (against 64.21 MMtoe in FY' 18), an increase of one percent.

8. Technology induction/up-gradation

Technology induction/ up-gradation in various areas of operations is a continuous process in your Company to remain effective and competitive. The following technologies were evaluated/ inducted in the year 2018-19:

a) Development of methodologies for oil to oil correlation using compound specific isotopic analysis of biomarkers (CSIB) and Total Scanning Fluorescence Spectrophotometry (TSF).

b) Development of methodology for estimation of thermal maturity of organic matter through Fourier Transform Infra-Red spectroscopy (FTIR).

c) Intrepid Software for processing and interpretation of potential field geophysics data: ground, airborne and marine surveys.

d) Nobel Gas Mass Spectrometer (NGMS): This new dating technology will be used particularly for absolute dating of basalts which will have bearing on sub-basalt Mesozoic hydrocarbon exploration, particularly in the Kutch-Saurashtra Basin, as well as to understand thermo-tectonic evolution of basement rocks from different sedimentary basins of India.

e) GCM Modelling through Landmark: Technology of making GCM through Landmark's "Earth Modelling Module" has been inducted.

f) Technology by ESSEME: Pilot Project finalised to carry out 'Thin Bed Resolution" study in Linch area through M/s ESSEME.

g) Broadband Processing has been established in OMEGA System by inducting Adaptive De-ghosting (AD) Technology on marine data to broaden the spectrum and improve the resolution by removing the source and receiver end ghosts.

h) Integration of reservoir model and 3D-MEM technology: This technique was used for optimization of hydro-fracturing in Redevelopment project of Gamij field.

i) Profile modifications and water shut off jobs: Carried out water shut off jobs using in house chemical formulations in different fields of ONGC.

j) Several MEOR jobs in huff-n-puff mode and PDB jobs for paraffin degradation in tubulars in Mehsana & Ankleshwar Assets were carried out. Scrapping free period improved significantly by application of in-house developed Paraffin Degrading Bacteria (PDB) microbial formulations in Mehsana and Ankleshwar Assets.

k) Chemical Tracer test: It was conducted for low salinity micro-pilot in a well of Mumbai High South. The in-house developed technology is used to estimate Remaining Oil Saturation to see the effect of Low salinity water flooding.

1) Gas Tracer: Application of in-house developed technology on Gas Tracer has been used for better understanding of migration of flue gases in reservoir. The technology was used for monitoring and analysis on real time basis of 26 wells.

m)Immiscible gas injection in Borholla field: Gravity assisted Immiscible gas injection in depleted reservoir in KSU-5 sand of Borholla field has been implemented with the objective to enhance oil production and increase recovery from a depleted dipping reservoir. The plan envisages incremental oil of 0.34 MMt.

n) Miscible CO2 in Gandhar field: Simulation for GS-9 and GS-11 was studied which envisaged incremental oil gain of 3.63 MMt (GS-9 Sand: -1.7 MMt; GS-11 Sand -1.93 MMt) by 2042 with 75 (GS-9 Sand: 14 OP+11 CO2 Inj.; GS-11 Sand: 23 OP + 27 CO2 Inj.) new well inputs.

o) Laboratory study of LoSalin South Heera field: The laboratory results are encouraging and the conceptual plan is on the anvil. Simulation results for South Heera indicate 0.33 MMT of incremental oil gain (over the period of 17 years) by 2035.

p) Gas Assisted Gravity Drainage (GAGD): A study on Gas Assisted Gravity Drainage (GAGD) process has been carried out in Kasomarigaon field. It envisages cumulative oil of 0.86 MMm3 (with 35% recovery) by drilling new horizontal oil producers and 2 new gas injectors. The process is envisaged to give dual benefit of maintaining reservoir health and reducing the gas flaring.

q) Polymer flood pilot in Bechraji, a heavy oil field (average viscosity of 270 cP) of Mehsana Asset was approved. This is the first time polymer flood is planned in heavy oil and envisaged potential to improve recovery by 4%.

r) Redevelopment of Gamij: The existing model was updated incorporating results of 55 new wells and integration of 3D-MEM for optimization of hydro-fracturing. A phase-wise development is suggested along with drilling of some parametric wells across the field to acquire high tech logs and core data to characterize sweet spots and optimize HF strategy.

s) "Development of Shockwave Assisted Tracking Tools: Filing of the second patent on "Shock tube tool for fracking of deep wells for oil and natural gas" is in progress.

t) Collaborative project with IIT-Delhi on "Development of direct hydrocarbon solid oxide fuel cell (SOFC) for utilization of low pressure gas for power generation at remote locations" is in progress under ONGC PAN-IIT Collaborative Research Program.

u) Collaborative project with IIT-Mumbai on "Flow Assurance of Waxy Crudes in Pipelines" is in progress under ONGC PAN-IIT Collaborative Research Program.

v) Collaborative project with IIT (ISM)-Dhanbad on "Development of Nano material based particle gel system for W&GSO in carbonate reservoirs" is in progress under ONGC PAN-IIT Collaborative Research Program.

w) i-Procalv-1: In-house developed process design software "i-Procar"1", which includes sizing

and rating of vertical as well as horizontal 3 phase separators including the effect of special internals.

x) PLUNG Lift: IOGPT developed software, "PLUNGLift", which can be used to determine if the existing well parameters are sufficient to operate the plunger. The software will also give an indicative design of plunger lift system.

y) Acquired technology for carrying out deep water riser and mooring analysis by procuring Orcaflex software (ORCINA) and training by experts from 2H Offshore, UK.

z) Developed software "MATCAP" for analysis of bearing capacity of offshore shallow foundations, especially mud-mat foundation on which offshore jackets are supported initially, till long piles are driven to permanently secure a platform in the offshore.

9. Other Exploration Initiatives/Activities National Seismic Programme (NSP):

ONGC has been assigned by MoPNG the responsibility to carry out 2D seismic Acquisition, Processing & Interpretation (API) of 40,835 LKM of data in un-appraised areas of Indian sedimentary basins. In view of revision of basin boundaries, the volume of work assigned to ONGC was also increased to 42,211 LKM by DGH in June, 2018.

As on 31.03.2019, ONGC has acquired 32,319 LKM of seismic data (76.6 % of total revised target of 42,211 LKM) and processed about 13,346 LKM of complete seismic lines.

Basement Exploration: This year also, ONGC took up Basement Exploration as a major initiative. During the year 2018-19, 25 wells were drilled for with Basement exploration. Deliberate search of hydrocarbons in the Mesozoic sequence of Kutch Saurashtra block of western offshore basin has led to discovery of a new hydrocarbon bearing play in the fractured dolerite intrusives which flowed gas in substantial quantity extendingthe exploration frontier around the area. Encouraging results obtained through drilling of a number of new prospects during the year in the Padra field of Cambay Basin and the UAS block of A&AA basin has further enhanced the scope of basement exploration. Development initiatives taken up for exploitation of the fractured Precambrian reservoirs in the Thirunagari and Pundi fields of Cauvery basin have been met with expected results, encouraging sustenance of scope for basement exploration and exploitation. Your Company has also identified 25 prospects from G&G interpretation for basement exploration which are being finalized.

HP-HT Exploration: HP-HT (High Pressure - High Temperature) regime begins at a minimum temperature-pressure domain of 150°C (300°F) and 10,000 Psi respectively. During the year 2018-19, in GS-OSN-2004/1 block of Western Offshore Basin, exploratory HP-HT well "GSS-041-NAA#C" has been successfully drilled and tested in Jhuran formation (Mesozoic) to be gas bearing. In KG offshore, HP-HT Well "YS-6-2#sub" has been successfully drilled to the target depth of 5,324m without complications and hermetically tested on March 28, 2019. The HP-HT well is being taken up for testing. In Cauvery Basin, HP-HT well "ABAAJCKL" has been drilled to 5,500m. After testing three objects, the well was abandoned. Further, the HP-HT well "VNAC" in Cauvery Basin has been concluded at depth of 3,760m against the target depth of 4,900m due to high pressure. The testing of the well is being taken up. In A&AA Basin, three HP wells in Khubal field had been drilled and tested with result of gas indication. Further, three HP wells in Kunjaban field have been taken up for drilling and testing for Lower Bhuban Formation.

10. Exploration and Production from Unconventional Sources

a) Coal Bed Methane (CBM):

Currently, ONGC is operating in four CBM Blocks, i.e., Jharia, Bokaro, North Karanpura (Jharkand) and Raniganj (West Bengal). After completion of Phase-I and II activities, development activities of Bokaro and North Karanpura is in progress. Revised Field Development Plans (FDP) for Jharia and Raniganj is under approval.

b) Shale Gas

During 2018-19, a total of 3 exclusive shale gas wells (NDSGA and NGSGA in Cambay basin and WGSGA in KG Basin) were drilled and one dual objective well NCSAA in KG Basin is presently under testing. So far, ONGC has completed drilling of 26 wells (of which 8 are exclusive wells and 18 are dual objective wells) in 21 blocks across four basins of Cambay, KG, Cauvery and A&AA Basins. Attempts are continuing to establish the shale gas/oil potential in the identified blocks. However, some indications of the presence of oil have been observed during the activation of the zones during hydro-fracturing in wells JMSGA and GNSGB in Cambay Basin and WGSGA in KG Basin. Presently, further activation is required in well WGSGA in KG Basin whereas well GNSGC in Cambay Basin is awaiting hydro-fracturing.

c) Underground Coal Gasification

Due to its inability to continue with UGC project, Gujarat Industries Power Company Limited expressed to withdraw from the Vastan UCG project. ONGC has done lot of ground work in this project and invested a lot of resources on UCG. A memorandum has been received from Ministry of Coal (MoC) on 31.10.2018, regarding allotment of the Vastan block to ONGC for testing of UCG pilot. MoC has sought confirmation from ONGC under UCG Policy terms and conditions, issued by MoC vide notification dated 26.09.2016. i.e., for full tenure 33 years of contract in 4 phases of exploration, pilot assessment, development and production. Allotment of Block from MoC is awaited.

d) Gas Hydrate Exploration Program

ONGC, as a NGHP Consortium Member of National Gas Hydrate Program of Gol, has played a significant role in G&G studies for the identification of sites for NGHP-01(2006)/ NGHP R&D Expedition-02 (2015) and successfully executed with on-board studies of both the expeditions.

The results of NGHP-02R&D Expedition are very encouraging and producible gas hydrates have been discovered in KG deep offshore areas in sand reservoirs which will be taken up for production testing during NGHP-03.

Presently, Gas Hydrate Research and Technology Centre (GHRTC) is involved in R&D activities in exploration for gas hydrate prospects in Indian Deep waters and potential exploitation methodologies for gas hydrates through in-house efforts and

PAN IIT collaborations. About eight in-house and two collaborative projects were completed. Four collaborative projects are in progress. Potential exploitation methodologies besides in-house studies like sand control, well bore completions and Depressurisation techniques, various production simulation studies have been carried out in collaboration with USA.

11. Oil & Gas Projects Projects completed in 2018-19

During the year 2018-19, ten major projects (3 development & 7 Infrastructure) costing around Rs.112,585.50 Million were completed.

Sl No	Project Name	Completion Date	Project Cost (t In Million)	Oil gain (MMT)	Gas Gain (BCM)
1	Construction of 3 ETPs, Mehsana	22.05.2018	881.80	-	-
2	Six Pipeline Project, Assam	31.05.2018	1,523.20	-	-
3	MH North Redevelopment Phase-Ill	31.05.2018	57,248.00	6.997	5.253
4	Development of C-26 Cluster Fields	31.05.2018	20,492.60	0.644	5.94
5	Pipeline Replacement Project, Ahmedabad	30.06.2018	1,470.40	-	-
6	Construction of one ETP at GGS-Nada, Ankleshwar	31.07.2018	1,284.70	-	-
7	Ahmedabad Gas compressor Project	05.09.2018	1,153.50	-	-
8	Nawagam-Koyali pipeline project	14.09.2018	1,850.20	-	-
9	PRP IV	31.12.2018	21,836.60	-	-
10	Redevelopment of Gamij Field, Ahmedabad	15.02.2019	4,843.90	1.269	0.101
Â	Â	Total	112,585.50	8.91	11.294

12. Projects approved during the year for implementation

During 2018-19 the following four Offshore Projects have been approved for implementation-

a) Pipeline Replacement Project-V: Project was approved on 26.04.2018 with an investment of Rs.7,663.70 Million. Project envisages laying and completion of 10 pipeline segments of ~60 Km under Mumbai High and Neela-Heera Assets. The project is expected to be completed by December 2019.

b) Mumbai High South Redevelopment Phase-

IV: Project was approved on 14.02.2019 with an investment of Rs. 36,607.10 Million. The scheme envisages installation of WIS-R water injection process platform, pilot EOR scheme and drilling of 6 development wells and 24 side-track wells. The scheme envisages incremental gain of 2.432 MMt oil and 0.577 BCM gas from IOR inputs and 0.795 MMt oil from EOR pilot scheme by March 2035. The project is expected to be completed by April 2021.

c) Development of cluster 8 marginal field: The project was approved on 14.02.2019 with an investment of s. 22,924.60 Million. The scheme envisages installation of 4 wellhead platforms, 3 slot clamp-on at B192-1, associated pipelines along with drilling of 18 development wells, one well tie-back and one side track. The scheme envisages incremental production of 4.380 MMt oil and 0.464 BCM gas by March-2035. The project is expected to be completed by May 2021.

d) Construction of Transit storage Yard, Kakinada,

EOA: The project was approved on 26.04.2018 with an investment of Rs.6,380 Million. Project envisages construction of storage yard and office at Kakinada. The project will be completed in 24 months after award of contract.

In addition, ONGC's mega offshore deep-water project in East Coast, Cluster-2 Development of KG-DWN-98/2, is in advanced stage of implementation. Contracts for some of the major packages such as SURF-SPS, Onshore Terminal and CPP & LQP (Offshore Process Platform and Living Quarters) have been awarded during 2018-19.

13. ONGC Energy Strategy 2040

During the year, your Company also adopted its strategic blueprint for the future - ONGC Energy Strategy 2040. While the Board approved the document in the first quarter of FY'20, much of the work in relation to the document was executed during FY'19. It is an important milestone for the Company as it gears up, as the country's foremost NOC in oil and gas, for the opportunities and challenges of the emerging world and domestic energy order for the next couple of decades. Strategy 2040 builds on the primary ideals and objectives of Perspective Plan 2030 while remaining alive to the evolving dynamics of an energy world that is in transition. It envisions ONGC as "A diversified energy company with strong contribution from non E&P businesses; 3x revenues and ~5-6x market capitalization ".

14. Financial Highlights:

Your Company has earned Profit After Tax (PAT) of Rs.267,158 million, up by 33.9% over FY'18 (Rs.199,453 million) and registered Revenue from Operations of Rs. 1,096,546 million, up by 29% over FY' 18 (Rs.850,041 million).

Highlights — Standalone Financial Statements

• Revenue from Operations: Rs. 1,096,546 million

• Profit After Tax (PAT): Rs.267,158 million

• Contribution to Exchequer: Rs.518,713 million

• Return on Capital Employed: 35.43%

• Debt-Equity Ratio: 0.11:1

• Earnings/ Share: Rs.20.86 •Book Value/Share:Rs. 161

Particulars	Rs. in million
	2018-19	2017-18
Revenue from operations	1,096,546	850,041
Other Income	75,190	78,836
Total Revenue	1,171,736	928,877
Profit Before Interest Depreciation, Finance Cost, & Tax Expenses	582,247	448,712
Less: Depreciation/Amortisation/ Impairment	157,786	144,702
Less: Finance Cost	24,921	15,085
Profit Before Tax (PBT)	399,540	288,925
Profit After Tax (PAT)	267,158	199,453
Transfer to General Reserves	154,362	110,290
Other comprehensive income arising from re-measurement of defined benefit obligation, net of income tax	(2,946)	(873)
Payments of dividends	95,952	77,642
Tax on Dividends	16,845	11,521
Expenses relating to buyback of equity shares	75	-
Opening Balance of Retained earnings	24,831	25,704
Balance at the end of the year	21,809	24,831

15. Buy-back of shares

The Board of Directors of the Company, at the meeting held on 20.12.2018 had approved the proposal for buy-back of equity shares upto 25,29,55,974 fully paid-up equity shares being 1.97% of the total paid-up equity shares of the Company at the price of Rs. 159 per equity shares payable in cash of an aggregate consideration not exceeding Rs.40,220 million. The buy-back offer worked out to 2.50% of the net-worth of the Company as on 31.03.2017 and 2.34% as on 31.03.2018. The Company has completed the buy-back of 25,29,55,974 fully paid-up equity shares on 22.02.2019.

Upon completion of the buy-back, the number of equity shares of the Company reduced from 12,83,32,35,180 to 12,58,02,79,206 with corresponding reduction in the paid-up share capital from Rs.64,166.17 million to Rs.62,901.39 million.

16. Dividend

The Board of Directors of your Company is pleased to recommend a final dividend of Rs.0.75 per equity share of the face value of Rs.5 each (@15%), payable to those Shareholders whose names appear in the Register of Members as on the Book Closure / Record Date.

Your Company has paid two interim dividends of Rs.5.25 per share (@105%) and Rs.1.00 per share (@20%) of Rs. 5 each.

The total dividend for the year aggregates to Rs. 88,062 million including the proposed final dividend, besides Rs. 18,101 million applicable Dividend Distribution Tax (DDT) which is 39.74% of PAT (inclusive of DDT). The dividend pay-out were in accordance with the Company's dividend distribution policy.

The Dividend Distribution policy as formulated by the Company, may be accessed at the web link https://www. ongcindia. com/wps/wcm/connect/en/ investors/policies.

17. Management Discussion and Analysis Report

As per the terms of regulations 34(2)(e) of the SEBI Listing Regulations, the Management Discussion and Analysis Report (MDAR) as appended, forms part of this Annual Report.

18. Financial Accounting

The Financial Statements have been prepared in compliance with Indian Accounting Standards (Ind-AS) issued by the Institute of Chartered Accountants of India (ICAI) effective from 01.04.2016 and applicable provisions of the Companies Act, 2013.

There have been no material changes and commitments, which affect the financial position of the Company, which have occurred between the end of the financial year to which the financial statements relate and the date of this Report.

19. Loans, Guarantees or Investments

Your Company is engaged in Exploration & Production (E&P) business which is covered under the exemption provided under Section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investment made or guarantee or security given by the Company to subsidiaries and associates is not reported.

20. Details relating to deposits covered under Chapter V of the Act

Particulars	Amount (in Rs.)
Deposits accepted during the year	Nil
Deposits remaining unpaid or unclaimed as at the end of the year	Nil
Default in repayment of deposit or payment of interest thereon during the year	Nil

21. Credit Rating of Securities: Details of the Credit Rating of Debt Securities obtained by the Company:

SI.	Particulars	Details
No.	Â	Â
1	Name of Debt Security	International Bonds issued by subsidiaries guaranteed by the Company	International Bonds issued by subsidiaries guaranteed by the Company	Commercial Paper upto Rs.1 00,000 Million outstanding at any point of time
2	Credit Rating obtained	Long term Issuer Credit Rating	Issuer Credit Rating	[ICRA]A1+, CARE A1+
Â	Â	Foreign Currency Rating : Baal (Stable)	Foreign Currency : BBB- (Stable)	Â
Â	Â	Local Currency Rating : Baal Stable	Â	Â
3	Name of the credit rating agency	Moody 's	S&P Global Ratings	ICRA Limited (ICRA), CARE Ratings Limited (CARE)
4	Date on which the credit rating was obtained	February 2005 and annual surveillance thereon every year.	November 2012 and annual surveillance thereon every year.	ICRA: 18th June, 2018 revalidated on 17th September, 2018, 11th December, 2018 and 14th March, 2019.
Â	Â	Â	Â	CARE: 25th June, 2018 and revalidated on 21st August, 2018, 27th December, 2018, 22nd February, 2019 and 29th April, 2019.
5	Revision in the credit rating	Not Applicable	Not Applicable	Not Applicable
6	Reasons provided by the rating agency for a downward revision, if any.	Not Applicable	Not Applicable	Not Applicable

22. Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placed in the Corporate Governance Report, which forms part of the Boards' Report.

23. Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section 188(1) of the Companies Act, 2013, is provided in specified Form AOC-2, and placed at Annexure-A.

24. Subsidiaries, Associates and Joint Ventures

The Consolidated Financial Statements for the year ended 31.03.2019 of your Company has been prepared in accordance with Section 134 of the Companies Act, 2013, Ind AS 103 "Business Combinations" as per Pooling of Interest Method, Ind AS 110 "Consolidated Financial Statements" and Ind AS 28 "Investments in Associates and Joint Ventures". The audited Consolidated Financial Statements for the year ended 31.03.2019 form part of this Annual Report.

Full Annual Reports of subsidiaries of your Company will be made available to any shareholder upon request, the same is also available on Company's website. Further, Annual Reports of ONGC Videsh, MRPL, HPCL and PMHBL are also available on websites www.ongcvidesh.com; www.mrpl.co.in; www.hindustanpetroleum.com and www.petmnetmhbl.com respectively.

Financial position of subsidiaries, associates and joint venture companies, included in consolidated financial statement provided in AOC-1 prepared under the Companies Act, 2013 and Accounting Standards.

In addition, brief details about subsidiaries/ Associates and Joint Ventures are as under :-

a) ONGC Videsh Limited

ONGC Videsh, the wholly-owned subsidiary of your Company for E&P activities outside India, has participation in 41 oil and gas projects in 20 countries, viz. - Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Israel (1 project), Kazakhstan (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6 projects), Namibia (1 project), New Zealand (1 Project), Russia (3 projects), South Sudan (2 projects), Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects) and Vietnam (2 projects).

Out of these 41 projects, ONGC Videsh is the Operator in 14 projects, Joint Operator in 7 projects and in remaining 20 projects it is non-operator. ONGC Videsh has a combination of 15 producing, 4 discovered/under development, 18 exploration projects and 4 pipeline projects.

ONGC Videsh's share in production of oil and oil equivalent gas (O+OEG), together with its wholly-owned subsidiaries ONGC Nile Ganga B.V, ONGC Amazon Alaknanda Limited, Imperial Energy Limited, Carabobo One AB and ONGC Videsh Singapore Pte. Ltd. has been 14.833 MMtoe during FY'19 as compared to 14.164 MMtoe during FY'18. The overall oil production increased from 9.353 MMt during FY'18 to 10.097 MMt during FY'19 (an increase of 8%). Gas production has been 4.736 BCM during FY'19 against 4.811 BCM during FY'18(lower by 1.6%).

During FY'19, the Company has made consolidated Profit After Tax of Rs. 16,823 million attributable to owners as compared to consolidated Profit After Tax of Rs.9,815 million attributable to owners during FY'18. The increase in profit is mainly on account of higher production and higher crude oil prices.

Significant financial activities during the year

ONGC Videsh has repaid bonds of USD 300 million that matured on 07.05.2018 on due date by raising USD 150 million in short-term Foreign Currency Non Resident/Foreign Currency Term Loan facilities from Banks and the balance USD 150 million from internal resources.

Memorandum of Understanding (MoU)

A Cooperation Agreement was executed on 28.09.2018 between ONGC Videsh Limited and UzbekNefteGaz to jointly explore the possibilities to assess potential opportunities in exploration blocks, under development assets and producing fields/blocks located within the Republic of Uzbekistan and third countries pertaining to upstream sector, with an initial term of two years. A Joint Working Team with members from UNG and ONGC Videsh is formed and preliminary data is under review.

Significant events in the area of Exploration& Operation during FY'19:

A) GPOC, South Sudan: - Production from Greater Pioneer Operating Company (GPOC), South Sudan project of ONGC Videsh has resumed after prolonged shutdown since December 2013. On August 25, 2018, officially declared the pumping of first crude oil from Toma South field of South Sudan to Heglig in Sudan.

B) CPO-5, Colombia:- Achieved second consecutive success in an onshore well Indico-lX, Colombia. The well Indico-1 was spudded on 07.11.2018 and drilling completed on 15.12.2018. During the test, the well flowed at self-flow rate of appx. 4,000 BOPD. Currently the well is under Short Term Testing with multi bean study for further evaluation. Importantly, first success was in the well Mariposa-1, which is located 6.5 km from Indico-1, and the continuation of same play is confirmed in the recent well.

C) Rovuma Area-1 Project, Mozambique:-

The jointly owned marketing entity of ONGC Videsh and joint venture partners of Mozambique Rovuma Offshore Area 1 project incorporated at Singapore, has entered into long-term LNG Sale and Purchase Agreement (SPA) with Tokyo Gas Co. Ltd. (Tokyo Gas) and Centrica LNG Company Ltd., a subsidiary of Centrica plc (Centrica) through a co-purchasing agreement for sale of 2.6 million tonnes per annum (MMTPA) from the start-up of production until the early 2040s; CNOOC Gas and Power Singapore Trading & Marketing Re. Ltd (CNOOC) for 1.5 MMTPA for a term of 13 years; Shell International Trading Middle East Ltd. (Shell) for 2 MMTPA for a term of 13 years; Bharat Gas Resources Ltd. a wholly owned subsidiary of Bharat Petroleum Corporation Ltd. for 1 MMTPA for a term of 15 years and Pertamina, a state owned oil and gas company of Indonesia, for 1 MMTPA for a term of 20 years.

These latest deals build upon previously executed deals for long term off-take of LNG from Rovuma Offshore Area 1 project and take long-term sales to more than 9.5 MMTPA. With the approval of the development plan in February 2018, ongoing resettlement implementation activities, site preparation and execution of these SPAs, the project is poised to take FID in H1 2019.

D) Lower Zakum Concession, UAE: The first equity cargo of Das Blend crude produced from Lower Zakum Concession, ADNOC Offshore, UAE arrived at New Mangalore port on 08.06.2018. This equity crude of ONGC Videsh was refined at MRPL, and is another step towards ensuring India's energy security needs.

E) Biock 06.1, Vietnam: Memorandum of Understanding (MoU) was signed on 18.04.2018 among ONGC Videsh, Rosneft, Vietnam BV (Operator) and Petro Vietnam relating to further exploration activities in Block 06.1, for exploration in deeper Clastic prospect.

Direct Subsidiaries and Joint Ventures of ONGC Videsh:

i) ONGC Nile Ganga B.V. (ONGBV):

ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities directly or through its subsidiaries/JVs in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25% Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.257 MMT during FY'19. ONGBV also holds 25% PI in Greater Pioneer Operating Company (GPOC), South Sudan. Production from GPOC, South Sudan resumed on25.08.2018 after prolonged shutdown since December 2013 and produced 0.131 MMT in FY' 19.

ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in A1 Furat Project (AFPC), Syria. Due to force majeure conditions in Syria, there was no production in AFPC project during FY'19. ONGBV holds 40% PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil & oil equivalent gas production of about 0.286 MMTOE during FY'19. ONGBV holds 27% PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. with its share of oil and oil equivalent gas production of about 0.548 MMTOE during FY' 19. It also holds 25% PI in Block BM-SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltda. ONGBV also holds 8.347% PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for onshore Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&PB.V

ii) ONGC Narmada Limited (ONL): ONL has been retained for acquisition of future E&P projects in Nigeria.

iii) ONGC Amazon Alaknanda Limited (OAAL): OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY'19, ONGC Videsh's share of oil and oil equivalent gas production in MECL was about 0.444 MMtOE.

iv) Imperial Energy Limited (IEL): IEL, a wholly-owned subsidiary of ONGC Videsh incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia, Russia. During FY'19, Imperial Energy's oil and oil equivalent gas production was about 0.242 MMtOE.

v) Carabobo One AB: Carabobo One AB, a subsidiary of ONGC Videsh incorporated in Sweden, indirectly holds 11% PI in Carabobo-1 Project, Venezuela. During FY'19, ONGC Videsh's share of oil and oil equivalent gas production was about 0.127 MMtOE.

vi) ONGC BTC Limited: ONGC BTC

Limited holds 2.36% interest in the Baku-TbilisiCeyhan Pipeline ("BTC") which owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude from the ACG fields from Azerbaijan to the Mediterranean Sea.

vii) Beas Rovuma Energy Mozambique Limited (BREML): BREML was incorporated in British Virgin Islands (BVI) and has been migrated by continuation to Mauritius w.e.f. 23.01.2018. ONGC Videsh holds 60% shares in BREML and the balance 40% are held by Oil India Ltd. BREML holds 10% PI in Rovuma Area 1, Mozambique.

viii) ONGC Videsh Atlantic Inc. (OVAI):

ONGC Videsh has setup a Geological and Geophysical (G&G) Centre at Houston, USA through its wholly owned subsidiary ONGC Videsh Atlantic Inc. The Centre caters to requirement of G&G studies for potential new acquisitions of ONGC Videsh including G&G studies of its existing portfolio of projects.

ix) ONGC Videsh Rovuma Limited:

ONGC Videsh Rovuma Limited a wholly owned subsidiary of ONGC Videsh was incorporated in Mauritius for re-structuring of 10%PI in Rovuma Area 1, Mozambique.

x) ONGC Videsh Singapore Pte. Ltd.:

The Company was incorporated on 18.04.2016 in Singapore for acquisition of shares in Vankorneft, Russia, through its subsidiary ONGC Videsh Vankorneft

Pte Limited (OWL). OWL holds 26% shares in Vankorneft, Russia and its share of production during FY' 19 was 5.800 MMTOE.

xi) Indus East Mediterranean Exploration Ltd.: Indus East Mediterranean Exploration Limited, a wholly owned subsidiary of ONGC Videsh was incorporated in Israel on 27.02.2018 and engaged in E&P activities related to Block-32, Offshore Israel.

xii) ONGC Mittal Energy Limited (OMEL):

ONGC Videsh along with Mittal Investments Sarl (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. ONGC Videsh and MIS together hold 98% equity shares of OMEL in the ratio of 49.98:48.02, remaining 2% shares are held by SBI Capital Markets Ltd. OMEL also holds 1.20% of the issued share capital of ONGBV by way of Class-C shares issued by ONGBV exclusively for Syrian Assets and is being financed by Class-C Preference Shares issued by ONGBV.

xiii) SUDD Petroleum Operating Company:

SUDD Petroleum Operating Company (SPOC), a Joint Operating Company incorporated in South Sudan to operate in Block 5A, South Sudan in which ONGC Videsh, Petronas & Nilepet of South Sudan holds 24.125%, 67.875% & 8% PI respectively. Block 5A is located in the prolific Muglad basin and is spread over an area of about 20,917 Square Km.

xiv) Mozambique LNG1 Company Pte. Ltd.:

Mozambique LNG1 Company Pte. Ltd. has been incorporated at Singapore by Rovuma Area-1 Mozambique consortium to oversee marketing and shipping activities of LNG from first 2 trains of Golfinho-Atum field. ONGC Videsh Limited holds 16% interest in the Company which is in proportion to its interest in Rovuma Area-1 Project, Mozambique.

xv) Falcon Oil & Gas B.V. (FOGBV):

FOGBV was incorporated in Netherlands on 06.02.2018. ONGC Videsh's wholly owned subsidiary ONGBV holds 40% shares in FOGBV, IOC and BPRL holds 30% shares each though their respective Dutch subsidiaries. The transaction documents were executed with ADNOC, Supreme Petroleum Council (SPC) and the Operating Company (OPCO) on 10.02.2018 at Abu Dhabi for acquiring 10% PI in Lower Zakum Concession for a period of 40 years with effect from 09.03.2018. During FY'19, ONGC Videsh's share of oil production was about 0.757 MMT.

b) Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company continues to hold 71.63 % equity stake in MRPL, a Schedule 'A' Mini Ratna company and listed entity, which is a single location 15 MMTPA Refinery on the West coast. Further, HPCL, another subsidiary of your Company, also continues to hold 16.96% in MRPL.

MRPL achieved the highest-ever crude oil processing of 16.23 MMT and lowest ever energy consumption of 74.27 MBN for FY'19. It also recorded the highest-ever high value Polypropylene production of 388 KT.

Even with the stressed global market conditions, MRPL achieved Net Profit of Rs.3,320 million and GRM of 4.06 USD/bbl.

Subsidiary

ONGC Mangalore Petrochemicals Limited (OMPL), is a subsidiary of MRPL. It has set-up Aromatic Complex with an annual capacity 914 KTPA of Para-xylene and 283 KTPA of Benzene in Mangalore Special Economic Zone as value chain integration project. OMPL operated at capacity utilization of -100% in FY'19. Total revenue in FY' 19 was Rs.83,624 million and net profit was Rs.229 million. This is a maiden profit for OMPL.

Presently, MRPL holds 51% in the share capital of OMPL and ONGC holds 48.99% and thus OMPL is a subsidiary of MRPL. 4,000 shares (.0002%) are held by 13 individuals.

c) Hindustan Petroleum Corporation Limited (HPCL)

Your Company acquired 51.11% shareholding held by the President of India in HPCL on 31.01.2018, for a total cash consideration of Rs.369,150 million. HPCL has recorded excellent physical and financial performance during the financial year 2018-19. HPCL achieved EBITDA of Rs. 130,772 million in FY'19 as compared to EBITDA of Rs.125,214 million in FY 2017-18. In spite of volatile crude prices, lower cracks and depreciation of rupee, HPCL was able to achieve higher EBITDA due to increased thru' put at refinery, higher marketing sales volume, and better operational efficiency and inventory gains. During FY'19, PAT has been Rs.60,287 million on standalone basis, as compared to PAT of Rs.63,571 million during FY'18. Gross Sales during FY' 19 increased to Rs.29,57,126 million as against Rs.24,32,267 million during the previous financial year.

During FY'19, HPCL refineries at Mumbai and Visakhapatnam have maximized crude processing and achieved the highest ever combined refining throughput of 18.44 Million Metric Tonnes (MMT) with capacity utilization of 117%, compared to throughput of 18.28 MMT achieved during FY' 18. Both refineries recorded the best ever crude throughput performance on individual basis as well.

Maximization of crude processing at refineries helped HPCL achieve the highest ever production of LPG (896 TMT), Lube Oil Base Stock (474 TMT) and Bitumen (1,267 TMT). HPCL refineries also achieved excellent performance in the area of energy efficiency and recorded the lowest ever combined specific energy consumption during the year. HPCL achieved combined Gross Refining Margin (GRM) of USD 5.01 per barrel during the year as compared to USD 7.40 per barrel during FY'18. GRMs were lower in comparison to previous year mainly on account of reduced cracks in all products except HSD and FO, higher fuel and loss cost due to increased crude price and exchange rate variation loss due to rupee depreciation.

During FY'19, HPCL achieved the highest ever sales volume of 38.7 MMT with a domestic sales growth of 4.7% over historical. Domestic sales of Motor Spirit (Petrol) increased by 6.8%, High Speed Diesel (HSD) by 2.1%, LPG by 7.1%, Aviation Turbine Fuel (ATF) by 20%, Bitumen by 26.4% and Lubes by 8%, compared to FY' 18.

HPCL continues to be India's largest lube marketer for the sixth consecutive year with overall lubricant sales volume of 650 TMT during the year. HPCL recorded market share gain of 0.17% in Motor Fuel sales amongst PSU OMCs during 2018-19. HPCL continues to be India's second largest LPG marketer. In Industrial & Consumer (I&C) business, HPCL exceeded 5 MMT sales volume for the third consecutive year.

HPCL reported consolidated PAT of Rs.66,906 million during 2018-19 as against Rs.72,183 million during previous financial year. The consolidated PAT is lower due to reduction in profits of HMEL and MRPL, resulting in reduction of HPCL's share of profits. Further share of profit from MRPL for FY 2018-19 was Rs.588 million as against Rs.3,389 million during 2017-18.

For the year 2018-19, HPCL has proposed a final dividend of Rs.9.40 per share, in addition to the interim dividend of Rs.6.50 per share aggregating Rs.15.90 per share for FY'19.

Capital Projects of HPCL

During 2018-19, a number of capital projects were completed by HPCL with highest ever overall capital expenditure of Rs. 116,890 million. Pipeline project for capacity expansion of Ramanmandi-Bahadurgarh Pipeline (RBPL) from 4.71 to 7.11 MMTPA was completed within the scheduled time and cost. POL supply network was strengthened with commissioning of new railway tank wagon gantry at Visakh black oil terminal, revamp of

the existing tank wagon facility at Jabalpur depot and commissioning of new aviation fuel stations at Amritsar, Bhubaneshwar, Raipur and Kolhapur airports. LPG supply infrastructure was augmented with commissioning of a new LPG bottling plant at Warangal (Telangana) with bottling capacity of 60 TMPTA and additional bottling capacity augmentation of 330 TMTPA at existing LPG plants.

478 new retail outlets and 1,018 new LPG distributorships were commissioned during 2018-19 taking the number of total retail outlets to 15,440 and number of total LPG distributors to 5,866 as of 31.03.2019.

HPCL has expanded its global footprints and is supplying HP Lubricants to 11 countries.

HPCL's Visakh Refinery Modernization Project and Mumbai Refinery expansion Project are progressing well. Major contracts have been awarded and site construction activities are in progress for both the projects. Licensor selection for all the process units has been completed for 9 MMTPA Greenfield refinery cum petrochemical complex project of HPCL Rajasthan Refinery Limited (HRRL) and site construction activities are in progress at Pachpadra in Banner. Financial closure is achieved for Rajasthan Refinery project.

HPCL's major ongoing pipeline projects

• Mundra Delhi Pipeline (MDPL) capacity expansion,

• Extension line from Palanpur to Vadodara including new greenfield terminal at Vadodara,

• Visakh Vijayawada Secunderabad pipeline (VVSPL) capacity expansion and

• Extension of Visakh Vijayawada Secunderabad pipeline (VVSPL) from Vijayawada to Dharmapuri &construction of marketing terminal at Dharmapuri are on track.

In addition, Uran Chakan LPG pipeline project is in advanced stage of completion. HPCL has been authorized to set up CGD networks in 9 states. With this HPCL on its own and through its JV companies has authorization for CGD network in 20 geographical areas in 9 states. Environmental clearance is received for LNG, regasification terminal being set up in Joint Venture at Chhara Gujarat.

Subsidiaries of HPCL

i) Prize Petroleum Company Limited (PPCL)

Prize Petroleum Company Ltd (PPCL) is a wholly owned subsidiary of HPCL. PPCL is the upstream arm of HPCL and is in the business of Exploration and Production (E&P) of Hydrocarbons as well as providing services for management of E&P blocks.

ii) HPCL Bio Fuel Limited

HPCL Biofuels Ltd (HBL) is a wholly owned subsidiary of HPCL. The company was incorporated on 16.10.2009 as a backward integration initiative to foray into manufacture of ethanol. HPCL Biofuels Ltd. (HBL) is a wholly owned subsidiary company of HPCL. HBL was promoted as a backward integration initiative to enable HPCL's foray into manufacturing of Ethanol for blending in Petrol. HBL presently has two integrated Sugar-Ethanol-Cogeneration plants at Sugauli and Lauriya in the state of Bihar.

iii) HPCL Rajasthan Refinery Limited

HPCL Rajasthan Refinery Ltd. (HRRL) is a joint venture of HPCL and Government of Rajasthan with 74% equity participation by HPCL and balance 26% by Government of Rajasthan. HRRL is setting up a 9 MMTPA capacity Greenfield refinery cum petrochemical complex in the state of Rajasthan. HPCL and the Government of Rajasthan entered into a revised Memorandum of Understanding on 18.04.2017 for the construction of the said Refinery with revised parameters. The revised Joint Venture Agreement was signed on 17.08.2017.

iv) HPCL Middle East FZCO

HPCL Middle East FZCO, a 100% Subsidiary of HPCL was incorporated on 11.02.2018 as a free zone company under Dubai Airport Free Zone and Establishment Card was issued on 22.03.2018 for the company. HPCL Middle East FZCO was established for trading of lubricants & greases, petrochemicals and refined petroleum products. The company has also commenced its operations. HPCL has expanded its global footprints and is supplying HP Lubricants to 11 Countries. Newly formed wholly owned subsidiary "HPCL Middle East FZCO" in Dubai has also commenced its operations.

d) Petronet MHB Limited (PMHBL)

Upon acquisition of controlling interest in the capital of HPCL on 31.01.2018, PMHBL has become a direct subsidiary of your Company. Both the Company and HPCL hold 65.44% (each 32.72%) in the capital of PMHBL. Balance 34.56% of equity being held by banks/ Financial Institutions.

PMHBL owns and operates a multi-product pipeline to transport MRPL's products to the hinterland of Karnataka.

In FY'19 PMHBL pipeline has achieved a throughput of 3.36 MMT against total throughput of 3.50 MMT last year.

PMHBL has recorded total Revenue of Rs.2,030 million as compared to Rs. 1,711 million in the previous year. Further, Profit After Tax of PMHBL was Rs.1,118 million in FY'19 as compared to Rs.835 million in FY' 18.

Associates and Joint Ventures

e) Pawan Hans Limited (PHL)

PHL, an Associate of the Company (49%) was formed with the Government of India (51%), acting through Ministry of Civil Aviation inter-alia for catering to the logistic requirements of oil fields located at remote/far-flung areas. PHL is a Mini Ratna-I Category PSU, having 43 helicopters including medi-chopper. The Government of India is taking action for identifying a strategic acquirer for its entire holding and hence, your Company has also decided to exit PHL along with the Government.

f) Petronet LNG Limited (PLL)

PLL, a JV of the Company, which was incorporated on 02.04.1998 with 12.50% equity holding along with identical stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL, is a listed Company. PLL, one of the fastest growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 15 MMTPA, the Kochi terminal has a capacity of 5 MMTPA.

During FY'19, the Company's Dahej Terminal operated at 107% of its name plate capacity and processed highest ever LNG quantities of 820 TBTU, as against the 816 TBTU of LNG quantities processed in FY 2017-18. The overall quantities processed by the Company in FY' 19 was 844 TBTU as compared to 848 TBTU processed in FY' 18.

The Company registered highest ever Profit before Tax of Rs.32,336 million in FY'19, which stood at Rs.30,551 million in the corresponding period, witnessing a growth of 6%. PAT for FY'19 was Rs.21,554 million, which stood at Rs.20,779 million in FY' 18, registering a growth of 4%.

The increase in profit over the corresponding FY 2017-18, is due to higher volumes processed at the Dahej Terminal and better efficiency in operations.

The Board of Directors have recommended a dividend of Rs.4.50 per equity share of Rs.10 each (45%) for the FY 2018-19.

g) Dahej SEZ Limited (DSL)

DSL, a 50:50 JV of the Company along with Gujarat Industrial Development Corporation, was formed for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as a valuechainintegration project, which serve as feeder unit to ONGC Petro- additions Limited.

Revenue from Operations of DSL during FY' 19 was Rs.578 million, Profit After Tax was Rs.328 million.

h) ONGC Tripura Power Company Limited(OTPC)

OTPC was incorporated on 27.09.2004 as a joint venture of your Company (50%) along with the Government of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with India Infrastructure Fund - II acting through IDFC alternatives Limited.

OTPC has set up a 726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura at a project cost of Rs.40,470 million. The basic objective of the project is to monetize idle gas assets of the Company in landlocked Tripura State and to boost exploratory efforts in the region. Power evacuation for both the units is done through 663 KM long 400 KV double circuit transmission network by North-East Transmission Company Limited (NETC), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states. OTPC's both power units of 363.3 MW each are fully operational in two phases. Average Plant load factor (PLF) for the year FY' 19 was 75%.

Total Income of OTPC during FY'19 was Rs.14,558 million and Profit After Tax (PAT) was Rs.2,139 million. OTPC paid an interim dividend of @8% and declared final dividend @6% also.

i) Mangalore SEZ Limited (MSEZL)

MSEZ is a Special Economic Zone promoted by the Company with an equity stake of 26% along with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%). MSEZ, was set up as zone for development of necessary infrastructure to facilitate and locate industrial establishment including OMPL. MSEZ is operational since 01.04.2015. With investments exceeding USD 2 billion and exports of over USD 400 million worth of goods from its units, MSEZ has emerged as one of the most vibrant operational multi-product SEZs in India.

Revenue from operations for FY'19 was Rs.2,068 million and PAT was Rs.24.10 million.

j) ONGC Petro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ for utilizing in-house production of C2-C3 and Naphtha from the nearby unit of the Company. The project cost of OPaL at completion was Rs.308,260 million.

OPaL has started its production in 2016-17 and has been ramping up its production in phases. OPaL has established itself in domestic/export market with sale of prime grade products. OPaL operated at average 70% capacity in FY'19; and aggregated more than One Million Tonne of polymer sales.

Total Income of OPaL during the year FY'19 has been Rs.97,854 million. Polymers produced by OPaL has been adjudged as the Best Polymer Brand of 2019 by Economic Times.

k) ONGC TERI Biotech Limited (OTBL)

OTBL is a JV formed by the Company (49.98%) along with The Energy Research Institute (48.02%) and the balance 2% shares are held by individuals. OTBL has developed various Biotechnical Solutions to oil and gas Industries through collaborative researches involving the Company and TERI. These technology include Bioremediation, Paraffin Degrading Bacteria (PDB), Wax Deposition Prevention (WDP) and Microbial Enhanced Oil Recovery (MeOR) which are being provided to oil and gas industries both in India and abroad.

Revenue from Operations of OTBL during FY'19 was Rs. 216 million and Profit After Tax was Rs.67 million.

1) Rohini Heliport Limited (RHL):

Your Company has subscribed 49% equity capital in Rohini Heliport Limited, a mirror company of Pawan Hans Limited incorporated on 07.01.2019 for the purpose of operating Rohini Heliport independently.

m) Indradhanush Gas Grid Limited (IGGL)

Your Company has subscribed 20% equity capital in IGGL, a JV company of ONGC, IOCL, GAIL, OIL and NRL. The company has been incorporated in Guwahati, Assam for the purpose of laying 1656 KM pipeline covering north east states with a Capex of Rs.92,650 Million. The company got incorporated on 10.08.2018 and has initiated the project related activities.

25. Companies Which Have Become/ Ceased To Be Company's Subsidiaries, Joint Ventures And Associates Companies During The Year

a) Companies which has become subsidiaries during the financial year 2018-19: Nil.

b) Companies which has ceased to be subsidiaries during the financial year 2018-19: Nil.

c) Companies which has become a joint venture or associate during the financial year 2018-19:

i) Rohini Heliport Limited.

ii) Indradhanush Gas Grid Limited.

d) Companies which has ceased to be a joint venture or associate during the financial year 2018-19: Nil

26. ONGC's Start-up Initiative

ONGC announced Rs 1,000 million Start-up fund on its 60th foundation day, i.e. on 14.08.2016 to foster, nurture and incubate new ideas related to energy sector. The initiative, christened as 'ONGC Start-up Fund', is in line with the 'Start-up India' initiative launched by the Hon'ble Prime Minister of India on 16.01.2016.

The initiative is intended to promote entrepreneurship among young Indians by creating an ecosystem that is conducive for growth of Start-ups in the energy sector, which has a huge potential for technology-enabled ideas. The energy sector is contributing enormously to the growth of economy. Currently, the sector faces various critical challenges and new ideas are required to mitigate these challenges.

On 07.12.2016 a dedicated website startup.ongc. co.in was launched by Honorable, Union Minister of State (I/C) Petroleum and Natural Gas for registration of proposals. The website also contains an application form to capture proposals for Funding support for Start-Ups.

In order to provide the entire support chain including seed capital, hand-holding, mentoring, market linkage and follow-ups, MoUs with SINE of IIT Bombay and L-Incubator of IIM-Lucknow (Incubators) were entered to support evaluation, selection, mentoring, monitoring and to construe an ecosystem to incubate new ideas related to energy sector and nurture them to become commercial ventures.

The associated institutes assist ONGC in evaluation, due-diligence, construction of documents and associated negotiations. The initiative has received very good response in four rounds held so far and one O&G 20 round held during Petrotech, 2019. ONGC has completed evaluation of two rounds and have provided support to five startups from energy sector. Evaluation of 3rd round is in progress. Pitching session for 4th and O&G 20 round is planned.

In addition to existing ongoing process, it has been decided that Oil &Gas CPSEs will create a common platform/ process through IITs/IIMs/ other educational Institutions for receiving and shortlisting proposals. ONGC is also a participant in the process, which shall provide access to increased number of Start-ups.

27. ONGC's Solar Chulha Initiative

Hon'ble Prime Minister, while dedicating Deendayal Urja Bhavan to the nation, had exhorted ONGC to take up a challenge of developing an energy efficient electric cooking stove under ONGC Start-Up scheme, which would enable cooking through the use of solar energy.

ONGC launched a nationwide Solar Chulha Challenge inviting Entrepreneurs/ Scientists/ Researchers to participate in the Indigenous Development effort of Solar Chulha (Electric and Thermal), suitable for indoor cooking of Indian food (including frying, baking and chapati making).

A panel of eminent scientists drawn from various national institutions/ bodies was constituted under Dr. Anil Kakodkar, former Chairman, Atomic Energy Commission for evaluation of applications.

After two rounds of evaluation by the Expert Panel and prototype demonstration held in ONGC premises on 23-24.04.2018, top three teams were awarded with cash prizes of Rs.10, Rs 5 and Rs.3 Lakhs respectively.

The other two teams were given appreciation awards of Rs.1 lakh each.

Teams from IIT Bombay and NIT Kurukshetra have installed 86 solar electric chulhas and 5 solar thermal chulhas respectively in Betul, MP, under pilot project.

BMS College's proposal is under consideration against ONGC Start-up Initiative.

28. Health, Safety and Environment (HSE)

Being a high risk industry, safety of its employees is the top-most priority of your Company. Hydrocarbon exploration & production (E&P) operations are being carried out in varied climate and environment areas ranging from deserts to coastal areas, hilly terrains to forests, shallow to deep water and also in ultra-deep water areas. E&P activities often interact with the ecosystems and may have physico-chemical & bio-geochemical impact on the surrounding environment. Your Company, being a responsible Corporate makes all efforts for protection and preservation of environment.

The Company has recently revised its Environment Policy and e-Waste Policy in line with the existing rules, regulations and guidelines. Your Company has a dedicated Institute, viz. Institute of Petroleum Safety and Health Management (IPSHEM) at Goa

for research and development in the field of Health, Safety and Environment Management apart from conducting training programs.

Your Company takes all the requisite measures to minimize the impact of E&P activities on the environment by adoption of clean technologies for gaseous emissions, liquid effluent and solid waste generated out of its operations. Your Company has implemented globally recognized QHSE Management System conforming to requirements of QHSE Certifications ISO 9001, ISO 14001 and ISO 18001 (OHSAS) and certified by reputed agencies at all its operational units. Corporate guidelines on online incident reporting, investigation and compliance of audit observations have been developed and implemented for maintaining uniformity throughout the organization in line with international practice.

HSE Highlights during 2018-19

Internal Safety Audits (ISA) and External Safety

Audits (ESA)

To check the conformity of activities and processes to HSE management systems as well as to prevalent rules, regulations, guidelines and standards, regular audits are being conducted internally by multi-disciplinary teams of ONGC and external audits/ inspections by different agencies, namely Oil Industry Safety Directorate (OISD) and Directorate General of Mines Safety (DGMS). During the year 268 internal safety audits were conducted. External Safety Audits

OISD conducts Safety Audits on regular basis. In the year 2018-19, 56 Safety Audit/Surprise Safety Audits and 2 Pre-Commissioning Audits were conducted by OISD. Compliance status as on 31.03.2019 was 91.48%.

DGMS is a Regulatory Agency under the Ministry of Labour and Employment, Government of India in matters pertaining to occupational safety, health and welfare of persons employed in mines (Coal, Metalliferous and oil-mines). It carries out periodic inspections of ONGC onshore facilities. Compliance status as on 31.03.2019 was 97.51%.

All efforts are being made to liquidate Safety Audit Recommendations within the stipulated timelines. Expected Date of Completion (EDC) for compliance of audit observation(s) is firmed up based on the criticality and volume of work involved. Suitable compensatory safety measures are put in place till the audit observations are complied with. Waste Water Management: ONGC monitors the usage of waste water and quality of effluent discharged by meeting statutory requirements for discharge of treated effluent at surface/ subsurface through Effluent Treatment Plants (ETPs). ONGC has 32 number of ETPs across onshore work centres to treat approx. 92,710 m3/day of waste water produced during E&P operations. For Offshore effluent treatment, Produced Water Conditioners (PWCs) have been installed at process platforms. For treatment of sewage water generated in offshore facilities, Sewage Treatment Plants (STPs) are in place.

Solid Waste Management: For environmentally safe disposal of oily waste, ONGC has a Joint Venture Company ONGC-TERI Biotech Limited (OTBL) which has developed specialized patented technology for bioremediation of oily sludge/oil contaminated soil. The technology uses a consortium of Hydrocarbon degrading bacteria which reduces the TPH (Total Petroleum Hydrocarbons) levels in waste/ soil to less than 1%. During 2018-19, 23,681 MT of oily sludge/ oil contaminated waste has been bio-remediated.

Environmental Clearances: During the year 2018-19, 7 Nos. of environment clearances (ECs) comprising 24 exploratory and 354 development wells in 30 fields/ML/PEL/blocks in onshore areas, GCS at Silchar and 4 Early Production Systems (EPS) at Raniganj block of CBM Asset were granted by MoEF&CC for carrying out exploration, development and production activities in acreages held by ONGC. Other Initiatives during 2018-19:

• Under Ten Safety Rules Awareness Programme, around 13,214 personnel (both ONGC and contractual personnel) during 2018-19 and 41,711 personnel since inception of the programme (i.e

February, 2017) have been apprised. It continues to be a permanent feature of the Safety Campaign.

• HSE Index, introduced for benchmarking installations on various parameters like detection and suppression system, environment parameters, evacuation systems, equipment integrity etc., has been implemented at all work centres.

• Regular Mock drills are being conducted at installations/ rigs to check the efficacy of preparedness against defined emergency scenarios. During 2018-19, 12,132 Emergency Response Plan (ERP), 5 Offsite Disaster Management Plan (DMP), 15 Onsite DMP and 1 RCP (Regional Contingency Plan) drills have been conducted.

• Mines Vocational Training (MVT) is being imparted to both ONGC employees and contract personnel through 10 in house training centres.

• Efficient implementation of HSE Management and no accident leading to insurance claim resulted in appreciable decrease in Insurance premium for Offshore Installation (USD 16.6 million for the year 2018-19 for Asset Value of USD 40.0 billion against USD 18.6 million for Asset Value of USD 36.0 billion for the year 2017-18).

• A unique initiative of Online Safety Pledge was launched through in-house portal of "ONGC Reports" to further reinforce the commitment of ONGC employees towards safety. The pledge is followed by automatic generation of Certificate with signatures of Director- I/c HSE.

• During 2018-19, Annual Preparedness Review (APR) was carried out to understand roles and responsibilities of ONGC (participant member) and Oil Spill Response Ltd. (OSRL), United Kingdom to meet the exigencies during oil spill which included Walk-through Exercise and Mock Drill onboard ONGC MSV for the first time.

• India was chosen to host World Environment Day (WED) 2018 by United Nations Environment

Program (UNEP) with theme "Beat Plastic Pollution". CMD along-with MD-ONGC Videsh and Board of Directors led the WED celebrations on 05.06.2018 and made a strong appeal to motivated ONGC employees to adopt eco-friendly lifestyles with sustainable alternatives to single use plastics. Additionally, ONGC was selected by Ministry of Environment, Forests and Climate Change (MoEF&CC) as Knowledge Partner in WED celebrations.

• Corporate-HSE along with Corporate-CSR collaborated with International Union for Conservation of Nature (IUCN) for Plastic Waste clean-up at Okhla Bird Sanctuary and Okhla Barrage on 07.06.2018 followed by a workshop on "Beat Plastic Pollution: From Rivers to the Oceans" on 20.06.2018 at ONGC Auditorium, Vasant Kunj, New Delhi.

• Safety Alert is a brief guidance material that highlights an incident or unsafe practice and outlines the required action to prevent their occurrence. The information is disseminated to stakeholders for evaluation and taking appropriate action. Corporate HSE has made it a practice to upload Safety Alerts on ONGC's internal portal ongcreports.net for wider circulation and awareness. Safety Advisories were also issued on ongcreports.net for generic audit observations and their compliances to help in improving the performance during audits by external agencies.

• For the first time, comprehensive Waste Management Audits were carried out at select installations of Ahmedabad and Ankleshwar Assets during March 2019 to check compliance of applicable provisions of waste management rules, which include Solid Waste Management Rules, 2016; e-Waste (Management) Rules, 2016; Plastic Waste Management Rules, 2016; Hazardous & Other Waste (Management & Trans-boundary Movement) Rules, 2016 and Construction & Demolition Waste Management Rules, 2016.

• ONGC has been accredited by Quality Council of India (QCI) - National Accreditation Board

for Education & Training (NABET), since 2013, as an Environment Impact Assessment (EIA) Consultant Organization which is mandatory for preparing ElA reports required for Environmental Clearances. ONGC has completed two full cycles of accreditation scheme. For further accreditation, assessment was done by QCI -NABET assessors at Deendayal Urja Bhawan during 20-22.02.2019 and which recommended continuance of ONGC's QCI-NABET accreditation.

29. Carbon Management and Sustainable Development

Sustainable Development is the overarching working template in the Company and this finds expression in our commitment to continually enhance the triple bottom line benchmarks of economic, environmental and social performance. Your Company has a dedicated set up called Carbon Management and Sustainability Group (CM&SG) at the corporate level to plan, implement and monitor sustainable development activities in association with Sustainable Development Officers (SDOs) located at work centres.

The major endeavors towards this initiative are as under:

Clean Development Mechanism (CDM):

Renewal of credit period of 51 MW wind power project at Surajbari, Gujarat. The final validation report was submitted to UNFCC for revalidation and renewal of the project on 18.02.2019. This request and related documents are available on the UNFCCC CDM website.

Development of CBM Asset - Bokaro as a new CDM project.

The baseline methodology applicable to the project was proposed to UNFCCC. UNFCCC has sought clarification on the proposed methodology for which responses are being submitted.

Verification of Five existing CDM projects

The verification of following five existing CDM projects has been taken up for the issuance of CERs:

• 51 MW Wind Power Project, Surajbad

• GFR Neelam & Heera,

• GT-1>-2atHazira,

• GFR - Uran, Amine Circulation Pumps, Hazira

For verification of 102 MW Wind Power Plant CDM project at Jaisalmer, Rajasthan Designated Operational Entity (DOE) has been hired to carry out the verification work.

Global Methane Initiative

In 2018-19, CM&SG carried out gas leak survey to detect fugitive emission of methane at 10 production installations of Ankleshwar Asset, and C2-C3, Dahej plant. The Gas Leak Survey Reports were submitted to Ankleshwar Asset and C2 -C3 Plant for remedial measures.

ONGC Group Sustainability Report

The Company launched its independently assured Sustainability Report in the year 2009-10 and from then onwards the Company has incrementally enhanced the boundary of reporting to include subsidiaries ONGC Videsh and MRPL and from FY'17 onwards the Group Corporate Sustainability Report also includes Joint Venture companies OTPC, OPaL and OMPL. The GRI based externally assured reports are now a major enabler to the Company towards creating triple bottom line value creation and parity to all forms of capital. ONGC Group Sustainability report FY' 17 was published in June, 2018.

Sustainable Water Management Projects: The following projects were taken up during the year

• Water footprint study of CBM Asset, Bokaro.

• Feasibility study for setting up of desalination plant at Rajahmundry Asset.

• Feasibility study for setting up of desalination plant at MRPL.

• Sea Water Desalination Plant, Uran.

30. Business Responsibility Report 2018-19

Clause (f) of sub-regulation (2) of regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, stipulates that the annual report shall contain a Business Responsibility Report describing the initiatives taken by the listed entity from an environmental, social and governance perspective in the format specified. Accordingly, the Business Responsibility Report for 2018-19 has been appended to this Annual Report.

31. Internal Control System

Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business; safeguarding of its assets; prevention and detection of frauds and errors; accuracy and completeness of the accounting records; and timely preparation of reliable financial information, commensurate with the operations of the Company. Effectiveness of Internal Financial Controls is ensured through management reviews, control self-assessment and independent testing by the Internal Audit Team indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls are operating effectively. The Audit Committee reviews the Internal Financial Controls to ensure their effectiveness for achieving the intended purpose. Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is attached along with the Financial Statements.

32. Human Resource Development

ONGC's operations are in challenging terrains -deserts, jungles, border areas, remote fields and offshore. Your Company truly value our Human Resource who commit themselves towards pursuit of exploration and production of hydrocarbons to ensure India's Energy security. To keep their morale high, your Company extends welfare benefits to employees and their dependants by way of comprehensive medical care, education, housing, and social security.

There were 31,065 employees on rolls as on 31.03.2019. These ONGCians dedicated themselves for securing excellent performance of your Company during the year. The workforce intake strategy pursued by your Company caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, rapid technological advances, physically challenging work environment, fluctuating product prices and growing competition. Your Company has drawn up a scientific manpower induction, retention and succession plan aligned to the business plans as well factoring the manpower profile of the Company.

During the year, your Company carried out Employee Engagement & Brand Perception Survey "Anubandhan" to understand the drivers of employee engagement and to know the attributes which are valued by the existing and prospective employees. More than 13,600 employees of your Company along with approx. 2,100 students from top B Schools and Engineering Colleges of India responded to the survey. Survey results indicated 85% engagement level.

Your Company emerged as the most preferred Corporate in the Oil and Gas Sector amongst engineering students.

During the year 2018-19, a total of 14,486 executives and 4,622 non-executives were imparted appropriate training, spanning 1,74,455 executive and 14,889 non-executive mandays'.

During 2018-19, 705 Graduate Trainees (in four batches) were exposed to various E&P activities as part of 'Induction Training'. 19 training programmes were conducted through foreign faculty which were attended by 394 participants. Your Company also pursued structured initiatives for maintaining a vibrant academia - industry interface through Chairs, participation in various academia-industry level forums, viz workshops, seminars, conferences, etc.

Your Company also initiated a program for identification of competencies and development of leadership for its identified Mid - Level executives through online development centres, with detailed Individual Development Plans for their development based on the assessments.

To keep the workplace lively and the workforce engaged and vibrant, your Company also conducted 'Business Games' to hone the business acumen of its executives through business quizzes, business simulations and case-study presentations. During the year 2018-19, a total of 248 teams and 961 executives participated in the event.

Similarly, 'Fun Team Games' (FTG) were organized for E0 and below level employees to inculcate MDT (Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. A total of 178 Teams and 712 employees participated in FTG during the year 2018-19. The winners of Business Games and Fun Team Games were felicitated by the CMD during Republic Day Celebrations-2019.

Employee Welfare Trusts

Your Company has established following Trusts for welfare / social security of employees :-

Employees Contributory Provident Fund

(ECPF) Trust, manages Provident Fund accounts of employees of your Company.

The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pension fund of employees of your company. The Scheme was converted into a Defined Contribution Scheme in accordance with DPE guidelines in Nov' 2013.

The Composite Social Security Scheme (CSSS) formulated by your company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee while in service. In case of separation other than Death/Permanent total disability, employee's own contribution alongwith interest is refunded.

Gratuity Fund Trust exists for payment of gratuity as per the provisions of the Gratuity Act.

Your Company has a Sahyog Trust for its Sahyog Yojana to provide ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the welfare of the workforce and their kin, who do not have adequate means of support. The beneficiaries under this scheme include casual, contingent, daily rated, part time, adhoc, contract appointees, tenure based employees, apprentices and trainees employed by your Company besides regular and past employees. Under the scheme, an amount of Rs.43.7 million was disbursed by the Trust during 2018-19 to 1178 beneficiaries.

Your Company has Asha Kiran Scheme to meet the emergency needs of the ex-employees retired prior to 01.01.2007. The scheme was launched as per DPE guidelines by creating a corpus of 1.5% PBT

Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15.5 percent and 10.4 percent respectively as on 31.03.2019.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their up-liftment in and around its operational areas :-

Annual Component Plan

Under Annual Component Plan for SC/ST, every year allocation of Rs. 200 million is made. Out of this, Rs.60 million is distributed amongst all the work-centres of ONGC for taking up activities for welfare of SC/ST Communities in and around areas of the Company's operations. In addition, Rs.140 million is managed centrally, and is earmarked for Special projects/proposals/schemes for the welfare of areas/ persons belonging to SC/ST communities. The amount under component plan is utilised for taking up various measures for the welfare and up-liftment of the needy people of SC/ST Communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical and Health Care.

Scholarship to meritorious students belonging to SC/ST community

Your Company provides 1000 scholarship for meritorious SC & ST students for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The major feature of the scheme is that the scholarships have been equally divided for both Boys and Girls students and the amount of scholarship has been made @ Rs 4,000/- per month amounting to Rs. 48,000/- per annum per student subject to conditions of the scheme.

Women Empowerment

Women employees constituted over seven percent (as on 31.03.2019) of your Company's workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its lady employees for programmes organized by reputed agencies. All E4/E5 level women executives underwent an Online Development Centre (ODC) program for identification, assessment and development of leadership competencies

Disclosure under the Sexual Harassment of women at workplace policy (prevention, prohibition and redressal) Act, 2013

Your Company has complied with the provisions under the Sexual Harassment of women at workplace

(Prevention, Prohibition and Redressal) Act, 2013 including constitution of Internal Complaints Committee (ICC) for dealing with complaints on sexual harassment of women at workplace. Two complaints of sexual harassment were received in the year 2018-19.

Work-Life Balance

Your Company believes in providing work-life balance to its employees. The townships at many work-centers have developed facilities like gymnasiums, music rooms, etc. Facilities for gym, yoga, etc. were also provided in Offshore Living Quarters. Outbound programmes with families were also organized at various work-centers. In addition, cultural programmes involving employees and their families were also conducted. ONGC Officers' Manila Samiti (OOMS) and Resident Welfare Associations (RWAs) were involved in organizing these cultural programs. Your Company has an adventure wing named ONGC Himalayan Association which organizes adventure programmes like mountaineering, trekking, water rafting, snow skiing, desert safari, Aero sports etc. which adds towards employee morale, engagement, team spirit, camaraderie, stress management and spirit to explore the unknown. 10 members of ONGC's Team successfully scaled the third highest peak in the world, Mount Kanchenjunga, on 20-21 May, 2018. The Team comprised a woman employee and a female scholarship mountaineer.

Grievance Management System

Your Company has put in place an effective online response mechanism (https://grievance.ongc.co.in) since 2015 to enable all stake-holders viz. citizens/ vendors, employees, former employees, to register and get online redressal to their grievances related to any operational wing of ONGC.

Your Company has also put in place a Grievance Management System for redressing employee grievance, which provides for three-tier channel for grievance redressal with an Independent Appeals Committee, at Corporate Level, which is chaired by an external professional to ensure transparency and justice. Each level of reporting at Controlling Officer (Channel-I), Sectional Head (Channel-II) and Asset/Basin/Institute/Plant/Office Head (Channel-Ill) has been mapped to provide access for settling individual grievances. An individual employee can enhance the level to the next Channel in case his grievance is not settled at the first, second or third Channels. The Appeals Committee situated at HQ can also be accessed for settlement of grievances in case the location Channels are not effective in resolving the grievance. Further, provision for representation through Chief Liaison Officers of SC/ST/OBC in the Appeals Committee is also built in to protect the interest of reserved category employees.

For external stakeholders, the Company has a well laid down grievance redressal system in place with adequate provisions to escalate the matters up to the Board (Stakeholders Relationship Committee - a Board level Committee headed by an Independent Director).

The Company voluntarily facilitates grievances through Independent External Monitors (lEMs) and through Outside Expert Committee (OEC).

33. Industrial Relations

During the year your Company maintained harmonious Industrial Relations throughout the Corporation. Man-days loss due to internal industrial action was reported as 'NIL' for the year 2018-19.

34. Implementation under the Right to Information Act, 2005

Your Company has a well-defined mechanism in place to deal with the RTI applications received under the RTI Act 2005. Your Company has a designated General Manager level officer as a 'Nodal Officer 'to oversee its implementation. The requests received are processed by the 22 senior personnel designated as 'Central Public Information Officers' (CPIOs) in various workcentres across the country, in compliance of Sections 5(1) and 5(2) of the Act. The particulars of all the quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the company website (www.ongcindia.com) for information of the general public. Further in compliance of Government directives, your Company is successfully processing the applications under the Act, online.

Your Company received 1,963 applications (including 138 transferred by other Public Authorities to ONGC) during the period from April 2018 to March 2019, and 183 RTI applications were carried forward from the year 2017-18. A total of 1,843 applications were responded to, out of a total of 2,146 applications. Further, 43 applications were rejected and 57 applications were transferred to other public authorities, in accordance with the provisions of the RTI Act 2005. There were 357 first appeals, which were disposed-off during the period. Additionally, 66 Second Appeals which were listed for hearing at the CIC during FY 2018-19 were also processed.

35. Implementation of Official Language Policy

Your Company makes concerted efforts for promotion and implementation of Official Language. In this regard, some of the steps taken during the year were:

• Unicode Hindi software installed in all offices.

• Hindi workshops conducted at regular intervals in all work centres.

• Hindi Technical seminars, 'Kavi Gosthies' and Hindi plays organized at various work centres.

• Various programmes for promotion of 'Rajbhasha' were organised at all work centres of ONGC during 'Rajbhasha Fortnight' (14-28 Sep., 2018) and 'Vishwa Hindi Diwas' (10.01.2019).

• Hindi Teaching Scheme of Govt. of India was implemented effectively at all regional work centres of ONGC.

• E-Roster of Employees regarding working knowledge of Hindi was put in place.

• Hindi e-magazines were published at various work centres.

• Paperless office (DISHA) has been made bilingual for effective implementation of Official Language policy in the office works. Besides this installation of Unicode in SAP platform has been taken-up to enable bilingual work in SAP also.

In recognition of the initiatives taken for promotion of Rajbhasha, your Company bagged eight Town Official Language Implementation Committee (TOLIC) awards under various categories during the year.

36. Sports

• ONGC sportspersons earned laurels for the Company and the country by securing 15 medals including 3 Gold, 7 silver and 5 Bronze at Asian Games 2018 held at Jakarta & Palembang, Indonesia. 38 ONGCians represented the Indian contingent while participating in this mega Event.

• In Commonwealth Games 2018 at Gold Coast, Australia, ONGC sportspersons bagged 13 medals including 5 Gold, 3 Silver and 5 Bronze contributing to the overall tally of 66 medals of Team India. 21 ONGCians represented India in various game disciplines in this event.

• Your Company continued its large scale support for development of sports in the country in the form of employment to 171 sportspersons and scholarships to 289 budding talents in 25 game disciplines. Your Company also sponsored various sports associations / federations / sports bodies for organising sports events as well as to develop sporting infrastructure. The support has enabled many sportspersons to achieve and bring home laurels for the nation and the organisation.

• Three ONGCian's were conferred the prestigious "Arjuna Award" for the year 2018 namely Ms. Hima Das (Scholarship Athlete), Shri Ankur Mittal (Shooting) and Shri G Sathiyan (Table Tennis).

• Shri Pankaj Advani, was conferred the third highest civilian award "Padma Bhushan" in the year 2018. He also won his 21st World title in cue sports by winning two World Titles in 2018IBSF World Billiards Championship in time and point format at Myanmar in November 2018.

• Shri Virat Kohli (Cricket) was conferred the prestigious "Rajiv Gandhi Khel Ratna" for the year 2018. The total number of National Awardees in the organization stand at 44 ( Padma Bhushan - 1, Khel Ratna - 2, Padma Shri - 3 & Arjuna Award - 37 and Dhyanchand Award - 1).

• ONGC Scholarship Athlete Shri Suraj Panwar created history by winning Silver medal in 5000 m walk at Buenos Aires in Youth Olympic Games 2018.

• ONGCian Shri Sourav Kothari won ' WBL World Billiards' Title in Leeds, UK in October 2018.

• ONGCian Shri Sourabh Verma won the 'Dutch Super Open 100' International Badminton Tournament at Almere, Netherland in October 2018.

• ONGC's Women Shooting Team comprising ONGCian Ms. Apurvi Chandela, and scholarship players Ms. Sriyanka Sadangi and Ms. Gayatri Pawaskar won Gold medal in the 62nd National Shooting Championship (Rifle Pistol event) at Trivandrum in November, 2018.

• Your Company organised the 2nd edition of the Para Games in March, 2019 in which 148 PWDs from different work-centres of ONGC participated.

37. Corporate Social Responsibility (CSR)

A report on CSR has been placed at Annexure B to the Report.

38. Accolades

Consistent with the trend in preceding years, your Company, its various operating units and its senior management have been recipients of various awards and recognitions. Detail of such accolades is placed at Annexure- 'C'.

39. Regulators or Courts order

During the Financial year 2018-19, there is no order ordirection of any court or tribunal or regulator which either affects Company's status as a going concern or which significantly affects Company's business operations.

40. Director's Responsibility Statement

Pursuant to the requirement under Section 134(3) (c) of the Companies Act, 2013, with respect to Directors' Responsibility Statement, it is hereby confirmed that:

a) In the preparation of the annual accounts, the applicable accounting standards have been followed and there is no material departures from the same;

b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so asto give a true and fair view of the state of affairs of the Company as at 31.03.2019 and of the profit of the Company for the year ended on that date;

c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Directors have prepared the annual accounts of the Company on a 'going concern' basis;

e) The Directors have laid down internal financial controls which are being followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating.

41. Corporate Governance

A detailed report on Corporate Governance as stipulated under Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is appended and forms part of the Board's Report.

42. Statutory Disclosures

Your Directors have made necessary disclosures, as required under various enactments including the Companies Act, 2013 and the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

43. Extract of Annual Return

As per requirement of Section 92(3) of the Companies Act, 2013, the extract of the annual return in form MGT-9 is placed at Annexure-D.

44. Particulars of Employees

Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued thereunder do not apply in view of the Gazette notification dated 05.06.2015 issued by Government of India, Ministry of Corporate Affairs.

The terms and conditions of the appointment of Functional Directors are subject to the applicable guidelines issued by the Department of Public Enterprises, Government of India. The salary and terms and conditions of the appointment of Company Secretary, a Key Managerial Person (KMP) of the Company, is in line with the parameters prescribed by the Government of India.

45. Energy Conservation

The information required under section 134(3) (m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure - 'E'.

46. Audit Committee

Incompliance with Section 177(8) of the Companies Act, 2013, the details regarding Audit Committee is provided under Corporate Governance report which forms part of this Annual Report. There is no instance during FY'19, where the Board had not accepted any recommendation of the Audit Committee.

47. Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG).There were 6 chartered accountants firms namely M/s. PKF Sridhar & Santhanam LLP, M/s. Dass Gupta & Associates, M/s. K. C. Mehta & Co., M/s. MKPS & Associates, M/s. G M Kapadia & Co., M/s. R Gopal & Associates who were appointed as Joint Statutory Auditors of the Company for the financial year 2018-19.

The Statutory Auditors have been paid a total remuneration of Rs.40.52 million towards audit fees, certification and other services. The above fees are inclusive of applicable service tax/ GST but exclusive of re-imbursement of travelling and out of pocket expenses actually incurred.

48. Auditors' Report on the Accounts

The comments of Comptroller & Auditor General of India (C&AG) form part of this Report and is attached Annexure 'F'. There is no qualification in the Auditors Report on the Financial Statements of the Company.

During the year 2018-19, there has not been any fraud reported by the Statutory Auditors of the Company.

49. Cost Audit

There were 6 cost accountants firms namely M/s. M. Krishnaswamy& Associates, M/s. Musib & Co., M/s. Chandra Wadhwa & Co., M/s. Bandopadhyaya Bhaumik & Co., M/s. N. D. Birla & Co., M/s. Joshi Apte & Associates who were appointed as Joint Cost Auditors of the Company for the financial year 2018-19. Appointments were made by the Board of Directors. The Cost Audit Report for the year 2017-18 has been filed under XBRL mode on 29.08.2018 which was well within the due date of filing.

Further, the required cost records as specified under the Companies Act, 2013 are prepared and maintained by the Company.

50. Secretarial Audit

In terms of Section 204(1) of the Companies Act, 2013, the Company has engaged M/s. Ashu Gupta & Co., Company Secretaries in whole-time practice, as Secretarial Auditors for conducting Secretarial Compliance Audit for the financial year ended 31.03.2019. Their report has been annexed and forms part of the Annual Report.

The Secretarial Auditor has made observations regarding performance evaluation of Independent Directors by the entire Board of Directors under Regulation 17(10) and evaluation of non-independent directors and the Board of directors as a whole by Independent Directors under Regulation 25(4)of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In this regard, it is mentioned that the Ministry of Corporate Affairs (MCA) vide notification dated 05.06.2015 notified exemptions to government companies from provisions of Section 178(2), (3) and (4) regarding appointment, performance evaluation and remuneration to directors of government companies. Further, the MCA vide notification dated 05.07.2017 notified amendment to schedule IV of the Companies Act, 2013 provided exemption to government companies with respect to evaluation of performance of Non-independent Directors, Chairperson and Board. It is learnt that Department of Public Enterprises has requested to SEBI through Department of Economic Affairs, Ministry of Finance for exemption to government companies regarding performance evaluation of directors as Government of India has independent mechanism for appointment and as well for assessment of performance of whole-time directors, government nominee directors and independent directors.

In respect of observation regarding prior approval of the Audit Committee for all Related Party Transactions (RPTs), it is mentioned that in line with provisions of the Companies Act, 2013 and SEBI Regulations, a policy on RPT has been framed, which can be accessed at https://www. ongcindia.com/wps/wcm/connect/en/investors/ policies/ In terms of RPT Policy, all the contracts/ arrangements/ transactions entered by the Company during FY'19 with related parties were in the ordinary course of business and on an arm's length basis. Transactions with related parties have been disclosed as 'Annexure A' and forms part of this report. SEBI Regulations provide for prior approval of related party transactions except with government companies and with wholly-owned subsidiaries. In this regard, necessary system is being put-in place to ensure compliances.

51. Directors

a) Policy for Selection and appointment of Directors' and their remuneration.

Your Company being a Government Company, the provisions of Section 134(3)(e) of the Companies Act, 2013 do not apply in view of the Gazette notification dated 05.06.2015 issued by Government of India, Ministry of Corporate Affairs.

b) Performance Evaluation

The provisions of Section 134(3)(p) of the Companies Act, 2013 relating to evaluation of Board/ Directors do not apply to your Company since necessary exemptions are provided to all government companies. The Company being a Government Company, the provisions relating to Performance Evaluation of Directors stand exempted. The Department of Public Enterprises has taken up with SEBI through the Department of Economic Affairs, Ministry of Finance to make suitable amendments in the LODR regulations in line the Companies Act, 2013.

c) Appointments/ Cessation etc.

Since the 25th Annual General Meeting held on 28.09.2018, change in composition of Board is as under-

i) Shri N. C. Pandey, appointed as Director (Technical and Field Services) of the Company w.e.f. 29.10.2018.

ii) Dr. Alka Mittal, appointed as Director (Human Resources) of the Company w.e.f. 27.11.2018.

iii) Dr. Sambit Patra, ceased to be an Independent Director of the Company on 23.03.2019 as he resigned due to personal reasons. The Board places on record its appreciation for his contribution during his tenure.

The strength of the Board of Directors of the Company as on 31.03.2019 was 17 comprising 7 Executive Directors (Functional Directors including CMD) and 10 Non-Executive Directors including two Government nominees and 8 Independent Directors. There is vacancy for an Independent Director to meet the requirement under the provisions of Companies Act, 2013 as well as under the Listing Regulations, 2015.

Â	On behalf of the Board of Directors
Â	Sd/-
New Delhi	Shashi Shanker
20.06.2019	Chairman and Managing Director

52. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Auditors and Comptroller& Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and all members of the ONGC Family for their faith, trust and confidence reposed in the Board.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

AOC-2 Annexure-A

(Pursuant to clause (h) of sub-section (3)of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of section 188

of the Companies Act, 2013 including certain arms length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm's length basis: Nil

2. Details of material contracts or arrangement or transactions at arm's length basis:

Sl no.	(a) Name(s) of the related party and nature of relationship		(b) Nature of contracts/ arrangements/transactions	(c) Duration of the contracts / arrangements/ transactions	(d) Salient terms of the contracts or arrangements or transactions including the value, if any:		(e) Date(s) of approval by the Board, if any:	(f) Amount paid as advances, if any:
Â	Name	Relationship	Â	Â	Salient terms	Transaction value (Rs. In Million)	Â	Â
1	Mangalore Refinery and Petrochemical Ltd (MRPL)	Subsidiary	Sale of crude oil	for FY18-19	As per Crude oil sale agreement	53,977.85	Â	Â
2	MRPL	Subsidiary	Purchase of petroleum oil and lubricants/high speed diesel	for FY18-19	As per contractual agreement	8,658.67	Â	Â
3	MRPL	Subsidiary	Lease of Office space to MRPL	for FY18-19	As per contractual agreement	103.17	Â	Â
4	MRPL	Subsidiary	Guarantee fee received for import of crude	for FY18-19	Actual	12.52	Â	Â
5	MRPL	Subsidiary	Guarantee fee for import of crude	for FY18-19	Non cash transcation (Ind AS fair valuation)	3.78	Â	Â
6	MRPL	Subsidiary	Interest Income received	for FY18-19	Market rate	549.12	Â	Â
7	MRPL	Subsidiary	Dividend income received	for FY18-19	Dividend	3,766.06	Â	Â
8	MRPL	Subsidiary	Tanker/Vehicle hiring charges	for FY18-19	Other Service	0.09	Â	Â
9	MRPL	Subsidiary	Manpower deputation	for FY18-19	Manpower deputation	6.33	Â	Â
10	MRPL	Subsidiary	Repayment of Loan	for FY18-19	Repayment of Loan	18,856.90	Â	Â
11	MRPL	Subsidiary	Financial guarantee issued for import of crude	for FY18-19	Guarantee amount (Rs.15,572.25 million)	9,146.48	Â	Â
12	ONGC Mangalore Petrochemicals Limited (OMPL)	Subsidiary	Investment in equity shares	for FY18-19	Investment in equity shares	1,469.94	Â	Â
13	OMPL	Subsidiary	Manpower deputation/director candidature	for FY18-19	Manpower deputation	0.30	Â	Â
14	ONGC Videsh Ltd (OVL)	Subsidiary	Dividend income received	for FY18-19	As approved by OVL	3,000.00	Â	Â
15	OVL	Subsidiary	Interest on loan received	for FY18-19	Market rate	3.58	Â	Â
16	OVL	Subsidiary	Guarantee fee in respect of financial guarantee extended to OVL	for FY18-19	non cash transcation (Ind As fair valuation)	476.56	Â	Â
17	OVL	Subsidiary	Inter-corporate Loan given	for FY18-19	Inter-corporate Loan given	1,860.00	Â	Â
18	OVL	Subsidiary	Repayment of Loan	for FY18-19	Repayment of Loan	1,860.00	Â	Â
19	OVL	Subsidiary	Guarantee fee	for FY18-19	Guarantee fee	325.91	Â	Â
20	OVL	Subsidiary	Expenses incurred on behalf of OVL	for FY18-19	Expenses	495.70	Â	Â
21	OVL	Subsidiary	Platts Subscription charges	for FY18-19	Subscription charges	12.41	Â	Â
22	OVL	Subsidiary	Performance Guarantees in favour of National oil company of Libya for Area 43 for USD 61 million.	effective from 05.03.2007	Guarantee amount (Rs.4,221.81 million)	1,730.25	Â	Â
23	OVL	Subsidiary	ONGC, the parent company guarantee in respect of Block SS-04, Bangladesh dated 27/03/2014 in favour of M/s PETROBANGLA in respect of the Company's obligations as set forth in the Production Sharing Contract.	effective from 27.03.2014	Guarantee amount (Rs.1,328.83 million)	1,328.83	Â	Â
24	OVL	Subsidiary	ONGC, the parent company guarantee has been given in respect of Block SS-09, Bangladesh dated 27/03/2014 in favour of M/s PETROBANGLA in respect of the Company's obligations as set forth in the Production Sharing Contract.	effective from 27.03.2014	Guarantee amount (Rs.2,242.40 million)	2,242.40	Â	Â
25	OVL	Subsidiary	ONGC, the parent company guarantee has been given in respect of Onshore Block PSC B-2, Myanmar dated 04/08/2014 in favour of Myanma Oil & Gas Corporation in respect of the Company's obligations as set forth in the Production Sharing Contract.	effective from 04.08.2014	Guarantee amount (Rs.1, 944.80 million)	1,944.80	Â	Â
26	OVL	Subsidiary	ONGC, the parent company guarantee has been given in respect of Onshore Block EP-3, Myanmar dated 04/08/2014 in favour of Myanma Oil & Gas Corporation in respect of the Company's obligations as set forth in the Production Sharing Contract.	effective from 04.08.2014	Guarantee amount (Rs.1,280.39 million)	1,280.39	Â	Â
27	OVL	Subsidiary	Financial guarantee for IDBI Trustsheep Services Limited for issuance of Redeemable Non-Convertible Debentures for an amount of RS 4000 million by OVL-Guarantee for 8.54% 10 Year Bond for Imperial-Russia	Due on 06/01/2020	Guarantee amount Rs.3,773.58 million	3,773.58	Â	Â
28	OVL	Subsidiary	USD BOND for acquisition of 2.7213% participating interest of Hess Corporation in the ACG fields and 2.36% participating interest in the BTC Pipeline) of: 10 year USD 500 million-Due 07 May 2023	Due on 07/05/2023	Guarantee amount (Rs.35, 124.08 million)	35,124.08	Â	Â
29	OVL	Subsidiary	Financial guarantee for Long term Loan of USD 1775 Million for acquisition of R-2, 10% PI from Anadarko	Due on 27/11/2020	Guarantee amount Rs.122,884.07 million	122,884.07	Â	Â
30	OVL	Subsidiary	Financial guarantee for Mozambiq. BREML_ 6% Videocon_3.25% coupon USD 750 Million - Due 15 July 19	Due on 15/07/2019	Guarantee amount Rs.52,263.64 million	52,263.64	Â	Â
31	OVL	Subsidiary	Financial guarantee for Mozambiq. BREML_ Videocon 6% USD 750 Million - Due 15th July 2024	Due on 15/07/2024	Guarantee amount Rs.52,414.32 million	52,414.32	Â	Â
32	OVL	Subsidiary	Financial guarantee for Mozambiq. OVL Anadrako 10% Euro 525 Million - Due 15th July 2021	Due on 15th July 2021	Guarantee amount Rs.41,594.21 million	41,594.21	Â	Â
33	OVL	Subsidiary	Financial guarantee for USD 400 Million Bonds 2.875% due 27 Jan 2022; Guarantee given to OWL; capped at 109 per cent, of the total aggregate principal amount	Due on 27/01/2022	Guarantee amount Rs.30,175.56 million	30,175.56	Â	Â
34	OVL	Subsidiary	Financial guarantee for USD 600 Million Bonds 3.75% due 27 Jul 2026 Guarantee given to OWL; capped at 109 per cent, of the total aggregate principal amount	Due on 27/07/2026	Guarantee amount Rs.45,263.34 million	45,263.34	Â	Â
35	OVL	Subsidiary	Term Loan of USD 500 Million taken to refinance Bridge Finance of USD 875 Million taken for acquisition of 11% shares of CISC Vankorneft by ONGC Videsh Vankorneft Pte Ltd, Singapore. USD 500 Million facility due April 2022: Guarantee capped at 103% of Total Commitments	Due on 26/04/2022	Guarantee amount Rs.21,033.09 million	21,033.09	Â	Â
36	OVL	Subsidiary	Term Loan of JPY 38 Billion taken to refinance Bridge Finance of USD 875 Million taken for acquisition of 11% shares of CISC Vankorneft by ONGC Videsh Vankorneft Pte Ltd, Singapore. JPY 38 Billion facility due April 2024: Guarantee capped at 103% of Total Commitments	Due on 26/04/2024	Guarantee amount Rs.24,454.67 million	24,454.67	Â	Â
37	Hindustan Petroleum Corporation Limited (HPCL)	Subsidiary	Sale of crude oil and value added products	for FY 18-19	As per sale agreement	173,138.27	Â	Â
38	HPCL	Subsidiary	Purchase of petroleum oil and lubricants/high speed diesel	for FY 18-19	As per contractual agreement	5,419.96	Â	Â
39	HPCL	Subsidiary	Rent for Office	for FY 18-19	Other Service	0.01	Â	Â
40	HPCL	Subsidiary	For Conferrences & Seminars	for FY 18-19	Other Service	8.11	Â	Â
41	HPCL	Subsidiary	Helicopter services provided	for FY 18-19	Other Service	3.21	Â	Â
42	HPCL	Subsidiary	Dividend income received	for FY 18-19	Dividend	7,009.61	Â	Â
43	ONGC Tripura Power Company Limited (OTPC)	Joint Venture	Sale of Natural gas	for FY 18-19	As per contractual agreement	6,481.80	Â	Â
44	OTPC	Joint Venture	Dividend income received	for FY 18-19	Dividend	672.00	Â	Â
45	OTPC	Joint Venture	Director candidature	for FY 18-19	Director candidature	0.10	Â	Â
46	OTPC	Joint Venture	Services received	for FY 18-19	Training	0.17	Â	Â
47	ONGC Petro additions Limited (OPaL)	Joint Venture	Sale of Naphtha & C2-C3	for FY 18-19	As per contractual agreement	52,459.88	Â	Â
48	OPaL	Joint Venture	Manpower deputation, loading and other charges provided	for FY 18-19	As per contractual agreement	19.05	Â	Â
49	OPaL	Joint Venture	Reimbursement of expenses incurred by OPaL	for FY 18-19	Reimbursement of expenses	16.15	Â	Â
50	OPaL	Joint Venture	ROU Charges for pipeline received	for FY 18-19	Pipeline service	1.36	Â	Â
51	OPaL	Joint Venture	Subscription of share warrants	for FY 18-19	As per contractual agreement	6,201.00	Â	Â
52	OPaL	Joint Venture	Unpaid Subscription of share warrants	for FY 18-19	As per contractual agreement	159.00	Â	Â
53	OPaL	Joint Venture	Letter of Comfort against term Loan	for FY 18-19	As per Comfort letter	65,000.00	Â	Â
54	OPaL	Joint Venture	Letter of Comfort against Non Convertible Debentures	for FY 18-19	As per Comfort letter	8,200.00	Â	Â
55	OPaL	Joint Venture	Commitment given for Backstopping support for compulsory convertible debentures-Interest Accrued	for FY 18-19	As per contractual agreement	447.54	Â	Â
56	ONGC Teri Biotech Limited (OTBL)	Joint Venture	Bio-remediation services received	for FY 18-19	As per contractual agreement	192.68	Â	Â
57	OTBL	Joint Venture	Field study charges and rent for colony accommodation provided	for FY 18-19	As per contractual agreement	0.42	Â	Â
58	Dahej SEZ Limited (DSEZ)	Joint Venture	Dividend income received	for FY 18-19	Dividend	80.59	Â	Â
59	DSEZ	Joint Venture	Lease rent/ROU charges for SEZ land for C2-C3 plant	for FY 18-19	As per contractual agreement	12.78	Â	Â
60	Indradhanush Gas Grid Limited (IGGL)	Joint Venture	Manpower deputation	for FY 18-19	Manpower deputation	0.77	Â	Â
61	IGGL	Joint Venture	Subscription to Equity	for FY 18-19	Subscription to Equity	50.00	Â	Â
62	Pawan Hans Limited (PHL)	Associate	Hiring of helicopter services from PHL	for FY 18-19	As per contractual agreement	1,217.86	Â	Â
63	PHL	Associate	Miscellaneous receipt on account of liquidated damages from PHL	for FY 18-19	Actual	180.69	Â	Â
64	PHL	Associate	Dividend income received	for FY 18-19	Actual	30.20	Â	Â
65	Petronet LNG Limited (PLL)	Associate	Facilities services received at C2-C3 plant	for FY 18-19	As per contractual agreement	679.08	Â	Â
66	PLL	Associate	Director sitting fee received	for FY 18-19	Actual	0.12	Â	Â
67	PLL	Associate	Purchase of LNG	for FY 18-19	Actual	8,816.95	Â	Â
68	PLL	Associate	Dividend Income received	for FY 18-19	Actual	1,875.00	Â	Â
69	Dr. Neeta Kakkar	Spouse of a Director	General Duty Medical Officer - Full time on contract basis	for FY 18-19	Actual	0.88	Â	Â

 

 

 

 

 

 

 

 

 

Â	On behalf of the Board of Directors
Â	Sd/-
New Delhi	Shashi Shanker
20.06.2019	Chairman and Managing Director

Annual Report on CSR Activities 2018-19

Q1. A brief outline of the company's CSR Policy, including overview of projects or programs proposed to be undertaken and a reference to the web link to the CSR policy and projects or programs.

Ans. The Corporate Social Responsibility and Sustainability (CSR) Policy of ONGC, approved by the Board of ONGC at the 269th meeting held on 28th May 2015 is in consonance with the CSR Policy framework enshrined in the Section-135 of Companies Act, 2013, Companies (CSR Policy) Rules, 2014 notified by Ministry of Corporate Affairs, Government of India and Guidelines on Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises issued by Department of Public Enterprises, Government of India (DPE Guidelines, 2014).

The said policy applies to all CSR Projects/ Programmes undertaken by ONGC as per liberal interpretation of activities listed in Schedule-VII of the Act, within the geographical limits of India alone, preferably towards the benefit of marginalized, disadvantaged, poor and deprived sections of the community and the environment.

As per the policy, projects/ programs are identified and budgets allocated for them through a process incorporating identification of suitable implementation agencies, need assessment and clear outlining of desired outcomes. The CSR projects / programs, which will, as far as possible, entail the following components:

i. Need Based Assessment / Baseline survey / Study where considered necessary / feasible;

ii. Identification of specific and measurable objectives / goals in identified sectors and geographies;

iii. Formation of the project and preparation of Detailed Project Report (DPR);

iv. Identification of time lines - clear specification of start date and end date;

v. Specification of annual financial allocation;

Annexure B

vi. Clear identification of beneficiaries (by name where possible);

vii. Clear identification of milestones for the complete duration of the Project/ programme;

viii. Preparation and signing of agreement with Implementing Agencies;

ix. Preparation and implementation of a comprehensive and concurrent documentation procedure;

x. Robust, periodic review and monitoring;

xi. Evaluation and Assessment, preferably both concurrent and final (wherever possible, by a competent third part);

xii. Mandatory Reporting;

The focus areas and budget allocation for individual CSR Projects/ Programmes / activities are made by the Committee on CSR in the beginning of each financial year. The indicative budget allocation for broad sector of Activities are as under:

SI. No.	Sector of Activity	Indicative Budget allocation
1	Promoting health care including preventative health care and sanitation and making available safe drinking water.	approx. 20% of CSR budget
2	Promoting education including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects.	approx. 20% of CSR budget
3	Ensuring environmental Sustainability, ecological balance, protections of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water.	approx. 20% of CSR budget
4	Rural development projects.	approx. 20% of CSR budget
5	(1) Setting up homes and hostels for women and orphans; setting up old age homes, day care centres and other such facilities for senior citizens	approx. 20% of CSR budget
Â	(2) Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts	Â
Â	(3) Training to promote rural sports, regionally recognised sports, Paralympics sports and Olympic sports	Â
Â	(4) Other areas mentioned in Schedule - VII	Â

 

The website of ONGC,www.ongcindia.com, has the link to the CSR activities and to a host of policies directed towards the betterment of disadvantaged, vulnerable and marginalised section of stakeholders.

Q2. The composition of the CSR Committee as on 31.03.2019

Ans. CSR Committee comprises of the following members

• Shri Ajai Malhotra, Independent Director -Chairman

• Dr. Santrupt B Misra, Independent Director -Member

• Shri A. K. Dwivedi, Director (Exploration)-ONGC - Member

• Shri Subhash Kumar, Director (Finance)-ONGC - Member

• Dr. Alka Mittal, Director (HR)-ONGC - Member

Q3. Average net profit of the Company for last three financial years.

Ans. Average net profit of the Company for last three financial years is as under;

Â	Â	Â	Rs. in million
Particulars	2015-16	2016-17	2017-18
Profit as per Section 198	230,810.30	236,167.30	253,334.00
Average profit under Section 135 for the last three years	240,103.90

Q4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above)

Ans. The prescribed CSR expenditure for FY 2018-19 is Rs.4,802.10 million (2% of the average profit under Section 135 for the last three years).

Q5. Details of CSR spent during the financial year

Ans. Out of the CSR Budget of Rs.4,802.10 million, the Company spent an amount of Rs.6,146.44 million in FY 2018-19. This translates to overall utilization of 128% of the CSR Budget for the year.

The details are enclosed.

Q6. In case the company has failed to spend the two percent of the average net profit of the last three financial years or any part thereof, the company shall present the reasons for not spending the amount in the Board report

Ans. ONGC spent an amount of Rs.6,146.44 million in FY 2018-19, which is more than two percent of the average net profit of the last three financial years.

Responsibility Statement

This is to certify that the implementation and monitoring of the CSR Policy in respect of all projects / programs covered under CSR initiatives for the year 2018-19, is in compliance with CSR objectives and Policy of the Company

Sd/-	Sd/-
Shashi Shanker	Ajai Malhotra
Chairman and Managing Director	Independent Director
Â	Chairman, CSR
Â	Committee

Enclosure to Annexure B (for 2018-19)

SI. No.	CSR Project or activity identified	Sector in which the Project is covered	Project or Program		Amount outlay (budget) project or program wise (Rs. in million)	Amount spent on the project or program (Rs. In million)		Cumulative expenditure up to the reporting period (Rs. in million)	Amount spent: Direct or through Implementing agency (IA)
Â	Â	Â	Local / other	State and District where project or program was undertaken	Â	Direct expenditure (Rs. in million)	Overheads (Rs in million)	Â	Â
1	ONGC Multispeciality Hospital at Rajabari, Sibsagar, Assam	Healthcare	Local	Assam	990.70	634.70	Â	990.70	Dr. Babasaheb Ambedkar Vaidyakiya Pratishthan through ONGC Foundation
2	Financial support for a project- Statue of Unity	Rural development projects	Local	Gujarat	500.00	500.00	Â	500.00	Sardar Vallabhbhai Patel Rashtriya Ekta Trust
3	Reconstruction of Dysfunctional IHHL in Tripura	Sanitation	Local	Tripura	250.00	200.00	Â	200.00	Jiban Dhara State Water And Sanitation Mission,Tripura through ONGC
Â	Â	Â	Â	Â	Â	Â	Â	Â	Foundation
4	Setting up of E-Class in various KVs across India	Education	Local	Delhi	83.40	83.40	Â	83.40	Kendriya Vidyalaya Sangathan through ONGC Foundation
5	Varishthajan Swastha Sewa Abhiyaan -Deployment of 31 Mobile Medical Units	Health care	Local	Operational area including the States of Operations	199.00	70.00	Â	165.50	Helpage India
6	Medical equipments for Diagnostic Centre at Delhi	Health care	Local	Delhi	107.20	42.90	Â	42.90	Sewa Bharti
7	Setting up of Sports Complex at Dharwad	Promotion of Sports	Other	Karnataka	136.80	41.10	Â	82.10	Institute For Integrated Rural Development
8	Financial assistance for Old Age Home at Palampur by VRT	Setting up old age homes	Other	Himachal Pradesh	74.80	33.60	Â	33.60	Vivekanand Medical Research Trust through ONGC Foundation
9	PCRA Mega Campaign 2019	Conservation of natural resources	Local	Delhi	30.00	30.00	Â	30.00	PCRA through ONGC Foundation
10	Sponsoring Special Swachhta Programme (Cleanliness drive) at Tirumala Tirupati Devasthanams (TTD), Tirupati through ONGC Foundation	Sanitation	Local	Andhra Pradesh	130.00	24.70	Â	102.10	Tirumala Tirupati Devasthanam through ONGC Foundation
11	Support for Samskrit Promotion	Education	Local	Delhi	59.00	23.60	Â	59.00	Samskrit Promotion Foundation
12	Development of roads near Kedamath	Protection of national heritage	Local	Uttarakhand	56.40	21.00	Â	56.40	Shri Kedamath Utthan Charitable Trust
13	Financial Assistance for Women Skilling & Entrepreneurship Development through Khadi Solar Charkha in Nawada and Sheikhpura in Bihar	Women Empowerment	Other	Bihar	67.10	20.10	Â	40.20	Bhartiya Micro Credit
14	Construction of Administrative Block and Student Dormitories at Ekalavya Centre for Organic Agriculture Research and Training, Gingurthi village, Tandur Mandal, District Vikarabad, Telangana	Ecological balance	Other	Telangana	47.20	18.90	Â	47.20	Ekalavya Foundation
15	Construction of school building at Hemtabad	Education	Local	West Bengal	25.50	15.30	Â	15.30	ONGC Foundation
16	Financial assistance for construction of an academic building and 2 hostel buildings at Sivananda Centenary Boys' High School, Bhubaneswar, Odisha	Education	Local	Odisha	47.20	14.20	Â	28.30	Sivananda Centenary Boys High School
17	Construction of a new ONGC-MRPL wing of Government Lady Goschen Hospital, Mangalore	Health Care	Other	Karnataka	146.80	11.90	Â	133.20	Government Lady Goschen Hospital & Mrpl Block Building Fund
18	Development of ONGC Bandra Promenade	Ensuring environmental sustainability	Local	Maharashtra	143.90	11.80	Â	11.80	Ravindra Joshi Medical Foundation
19	Tribal Girls Hostel at Kandhamal, Odisha	Women Empowerment	Local	Odisha	37.20	11.20	Â	11.20	Samarpan Charitable Trust
20	Project Saraswati	Drinking water Facility	Other	Haryana	56.40	11.00	Â	51.00	Water And Power Consultancy Services
Â	Â	Â	Â	Â	Â	Â	Â	Â	(India) Limited (WAPCOS) Through ONGC Foundation
21	Construction of an academic building and a hostel building at Saraswati Sishu Vidya Mandir, Dihapadhala, Bhanjanagar, Ganjam district, Odisha	Education	Local	Odisha	18.20	10.90	Â	10.90	ONGC Foundation
22	Convention Centre at Kapkot, Bageswar	Rural development projects	Local	Uttarakhand	24.00	10.80	Â	10.80	ONGC Foundation
23	Support to Manav Sewa Pratishtan for School, hostel & hall at Karmadang, West Bengal	Education	Local	West Bengal	15.90	10.40	Â	15.10	Manav Seva Pratisthan
24	Yoga camps in Odisha on IYD 2018	Healthcare	Local	Odisha	10.00	10.00	Â	10.00	Swami Vivekananda Yoga Anusandhana Samsthana (S VYASA)
25	CSR Projects of Onshore Asset/ Basin	Schedule VII of the Companies Act	Local	Operational area including the States of Operations	2403.10	2004.10	Â	2165.90	Various implementing Agencies
26	CSR Projects of Offshore Asset/ Basin	Schedule VII of the Companies Act	Local	Operational area including the States of Operations	224.40	191.10	Â	208.50	Various implementing Agencies
27	CSR Projects of Exploration Group	Schedule VII of the Companies Act	Local	Operational area including the States of Operations	64.40	53.30	Â	58.60	Various implementing Agencies
28	CSR Projects of Plants	Schedule VII of the Companies Act	Local	Operational area including the States of Operations	73.70	67.30	Â	70.40	Various implementing Agencies
29	CSR Projects by Administrative Offices/ Institutes	Schedule VII of the Companies Act	Local	Operational area including the States of Operations	244.20	185.20	Â	203.90	Various implementing Agencies
30	CSR Projects by Corporate CSR	Schedule VII of the Companies Act	Local	Operational area including the States of Operations	3557.00	1506.00	Â	3127.50	Various implementing Agencies
31	Administrative Overheads (Rule 4(6) of Companies(CSR Policy ) Rules, 2014	Â	Â	Â	Â	Â	277.90	Â	Â
Â	Â	Â	Â	Â	Â	5,868.50	277.90	8,565.50	Â

 

 

 

 

 

Awards & Accolades 2018-19

1. ONGC ranked 197 in coveted Fortune Global 500 list 2018

The Company, India's largest oil and gas producer, has been ranked 197 in the coveted Fortune Global 500 list. This ranking has come on the back of robust fiscal and physical performance in FY'18. The Company has been ranked fifth globally in the 'mining and crude oil production' industry category.

2. Platts Top 250: ONGC ranked no.1 E&P Company

The Company maintained its First Position globally in the industry category "Oil and Gas Exploration and Production" and achieved overall ranking of 21st position in the Platts Top 250 Global Energy Company Rankings-2018.

3. Dun & Bradstreet Award 2018 in the 'Oil and Gas Exploration' category

The Company has been adjudged the winner in the 'Oil and Gas Exploration' category of the Dun & Bradstreet Corporate Awards 2018.

4. Green Rameswaram CSR project bags accolades at 2nd Innovative Practices Awards

ONGC's 'Green Rameswaram' CSR Project was crowned winner under the 'Sanitation Category' at the 2nd Innovative Practices Awards for Sustainable Development Goals at Bengaluru on 08.06.2018.

5. 'Maharatna of the Year (Non-Manufacturing)' in Dalai Street's Roll of Honor

The Company has been recognized in the Dalai Street Investment Journal's Roll of Honor list of India's Best Public Sector Undertakings 2017 as the 'Maharatna of the Year (Non-Manufacturing)'. The awards were published in the flagship issue of DSIJ PSU Award, which, over the years, has served as an exclusive platform to recognize the efforts and achievements of PSUs in India.

Annexure C

6. INFRA Icon Award in the 'Global Energy' category

The Company has been conferred with INFRA Icon Award in the "Global Energy" category at the midday INFRA Icons Awards 2018.

7. Bagged four awards at 5th Dun & Bradstreet PSU Awards

The Company was awarded with four accolades at 5th Dun & Bradstreet PSU Awards. It has been adjudged the winner in categories viz. 'Mining & Exploration: Crude Oil', 'Mining & Exploration', 'CSR' and 'Swachh Bharat'. ONGC won the top honour in each of the four awards, which were keenly contested.

8. Top honours at Swachhta Pakwada Awards

The Company has received top honours at ' Swachhta Pakhwada' Awards in Delhi.

9. ICC PSE Excellence Award 2017 in three categories

The Company received three awards at the Indian Chamber of Commerce (ICC) PSE Excellence Awards 2017 in 'Operational Performance Excellence', 'Contribution of Women in PSEs' and 'Corporate Governance' categories.

10. "GLOBAL ENVIRONMENT AWARD"

IPSHEM, Goa received prestigious "Energy And Environment Foundation Global Environment Award 2018" under the Platinum category during the 9th World Renewable Energy Technology Congress and Expo-2018.

11. FIPI Oil & Gas Awards 2017

The Company has been conferred with two awards under prestigious categories of "Exploration & Production - Company of the year" and "Environmental Sustainability - Company of the year" by Federation of Indian Petroleum Industry (FIPI).

12. Saksham Award for the best Overall performance in Upstream Sector

The Company in recognition of its efforts for promoting Oil & Gas Conservation during "Saksham 2018" was honoured with the award for best overall performance in the "Upstream Sector" at the inaugural function of " Sanrakhsan Kshamta Mahotsav-2019" (Saksham-2019).

13. Governance Now Award

The Company was awarded Governance Now Award for its "HR Excellence" and "Communication Outreach" at the 6th PSU Awards held at New Delhi.

14. Golden Peacock Award for HR Excellence

The Company won the Golden Peacock Award for HR Excellence in a ceremony organized by Institute of Directors (IOD) at Mumbai.

15. CSR work in Jammu & Kashmir recognized by FICCI

The Company has been conferred with FICCI award for Corporate Social Responsibility (CSR) projects undertaken by it in Baramulla and Uri of Jammu & Kashmir. ONGC undertook CSR projects in the field of skill development, education, rehabilitation work on the frontiers and contribution to nation building in association with the Indian Army and NGO REACHA.

16. Award for Best Innovative Practices for Women at Workplace

ONGC has won the Best Innovative Practices Award for Women at Workplace at the 2nd Gender Equality Summit organized by Global Compact Network India on the theme "Preparing Women for the Future of Work", on 1 March 2019 at New Delhi. Award jury lauded the efforts of ONGC towards achieving Goal No. 5 of UN Sustainable Development Goals (SDGs).

17. "Energy and Environment Foundation Global Safety Award 2019"

IPSHEM received the prestigious "Energy and Environment Foundation Global Safety Award 2019" in Platinum category during 9th World Petro-Coal Congress& Expo (WPCC), 2019 from 15 to 17 February 2019.

18. Greentech Foundation Safety Award

Mehsana Asset of the Company was awarded with the prestigious Greentech Safety Gold Award in recognition of its outstanding achievement in maintaining Safety Standards in Energy Sector. The award was given to the Rig - UPET Romanian 50 -V Work Over Rig during the 17th Annual Greentech Safety Awards held at Guwahati.

19. BBS Award by Forum of Behavioural Safety

Uran Processing Plant of the Company was adjudged the BBS Award Winner in Petrochemical categoryat the Third Annual National Conference-2019 on BBS, New Delhi.

20. Apex India Occupational Health & Safety Excellence Award

Hazira Processing Plant of the Company bagged the coveted Apex India Occupational Health & Safety Excellence Award 2017 in a ceremony held at New Delhi.

ANNEXURE- D Form No. MGT-9

EXTRACT OF ANNUAL RETURN for the Financial Year ended on March 31, 2019

[Pursuant to section 92 (3) of the Companies Act, 2013 and rule 12 (1) of the Companies (Management and Administration) Rules, 2014]

I. Registration and other details:	Â
i) CIN :	L74899DL1993GOI054155
ii) Registration Date :	June 23, 1993
iii) Name of the Company :	Oil and Natural Gas Corporation Limited
iv) Category/Sub-Category of the Company :	Government Company
v) Address of the registered office and : contact details	Plot No. 5A - 5B, Nelson Mandela Road, Vasant Kunj, New Delhi, Sout West Delhi -110070 Ph: 011-26754073/79, Fax: [phone]
vi) Whether listed Company :	Yes
vii) Name, Address and Contact details of : Registrar and Transfer Agent, if any	Alankit Assignments Limited, ' Alankit Heights' 3E/7, Jhandewalan Extension, New Delhi - 110055 Tel: [phone]/1960, Fax: [phone], www.alankit.com, [email protected]

II. Principal business activities of the Company

All the business activities contributing 10% or more of the total turnover of the Company shall be stated:-

SI. No.	Name and Description of main products/services	NIC Code of the Product/ service	% to total turnover of the Company
1	Crude Oil	061	70.74%
2	Natural Gas	062	17.18%

III. Particulars of holding, subsidiary and associates companies

SI. No.	Name and Address of the company	CIN/GLN	Subsidiary/ Joint Venture Associate	% of Shares Held by ONGC	Applicable Section
1	ONGC Videsh Limited Plot No. 5A - 5B, Nelson Mandela Marg, Vasant Kunj New Delhi 110070	U74899DL1965GOI004343	Subsidiary	100.00%	2(87)
2	Mangalore Refinery and Petrochemicals Limited Mudapadav, Kuthethur P.O., Via Katipalla, Mangalore-575030	L23209KA1988GOI008959	Subsidiary	71.63%	2(87)
3	Hindustan Petroleum Corporation Ltd. "Petroleum House", 17, Jamshedji Tata Road Churchgate, Mumbai-400020	L23201MH1952GOI008858	Subsidiary	51.11%	2(87)
4	Petronet MHB Limited Corporate Miller, 2nd Floor, Block B 332/1, Thimmaiah Road, Vasanth Nagar, Bengaluru - 560052	U85110KA1998GOI024020	Subsidiary	65.44% (ONGC 32.72% &HPCL 32.72%)	2(87)
Indirect Subsidiary through MRPL	Â	Â	Â	Â	Â
1.	ONGC Mangalore Petrochemicals Limited Mangalore Special Economic Zone, Permude, Mangalore -574509	U40107KA2006GOI041258	Subsidiary	48.99%	2(87)
Indirect Subsidiaries through HPCL	Â	Â	Â	Â	Â
1.	Prize Petroleum Company Ltd Jeevan Bharati Building, 11th Floor, Tower- 1, 124, Connaught Place, Indira Chowk, New Delhi- 110001	U74899DL1998GOI096845	Subsidiary	100.00%	2(87)
2.	HPCL Bio Fuels Ltd House No.271, Road No.3E, Holding No. 437 & 438 Ward No. 22, New Patliputra Colony, Patna- 800013	U24290BR2009GOIO14927	Subsidiary	100.00%	2(87)
3.	HPCL Rajasthan Refinery Ltd Tel Bhavan, Sahkar Marg LaLkothiVistar, Jyoti Nagar, Jaipur-302005	U23201RJ2013GOI043865	Subsidiary	74.00%	2(87)
4.	Prize Petroleum International Pte Ltd	Not applicable	Subsidiary	100%	2(87)
5.	HPCL Middle East FZCO 1 W101,PO Box no. 54618, Dubai Airport Free Zone, Talwar , Dubai	Not applicable	Subsidiary	100%	2(87)

 

 

SI. No.	Name and Address of the company	CIN/GLN	Subsidiary/ Joint Venture Associate	% of Shares Held by / through OVL	Applicable Section
Indirect Subsidiaries through ONGC Videsh Limited
1.	ONGC Nile Ganga B.V. (ONGBV), Netherland	Not applicable	Subsidiary	ONGC Videsh holds 100% each of class A and class B Share Capital and 55 % of class C Share Capital	2(87)
2.	ONGC Narmada Limited, Nigeria	Not applicable	Subsidiary	100%	Â
3	ONGC Amazon Alaknanda Limited, Bermuda	Not applicable	Subsidiary	100%	2(87)
4.	Imperial Energy Limited (IEL), Cyprus	Not applicable	Subsidiary	100% (89.48% held by ONGC Videsh Limited and 10.52% held through its subsidiary ONGBV)	2(87)
5.	Carabobo One AB, Sweden	Not applicable	Subsidiary	100%	2(87)
6.	ONGC (BTC) Limited, Cayman Islands	Not applicable	Subsidiary	100%	2(87)
7.	Beas Rovuma Energy Mozambique Limited, Mauritus	Not applicable	Subsidiary	60%	2(87)
8.	ONGC Videsh Atlantic Inc., US	Not applicable	Subsidiary	100%	2(87)
9.	ONGC Videsh Rovuma Limited, Mauritus	Not applicable	Â	100%	2(87)
10.	ONGC Videsh Singapore Pte. Ltd.	Not applicable	Subsidiary	100%	2(87)
11.	Indus East Mediterranean Exploration Ltd.	Not applicable	Subsidiary	100%	2(87)
(a) Indirect Subsidiaries through ONGBV
12.	ONGC Campos Ltd., Brazil	Not applicable	Subsidiary	100%	2(87)
13.	ONGC Nile Ganga (San Cristobal) B.V, Netherlands	Not applicable	Subsidiary	100%	2(87)
14.	ONGC Caspian E&P B.V, Netherland	Not applicable	Subsidiary	100%	2(87)
15.	Imperial Energy Tomsk Limited, Cyprus	Not applicable	Subsidiary	100%	2(87)
16.	Imperial Energy (Cyprus) Limited, Cyprus	Not applicable	Subsidiary	100% (99.99% held through its subsidiary IEL& 0.01% held through Imperial Energy Nord Limited)	2(87)
17.	Imperial Energy Nord Limited, Cyprus	Not applicable	Subsidiary	100% (99.99% held through its subsidiary IEL & 0.01% through its subsidiary Imperial Energy (Cyprus) Limited	2(87)
18.	Biancus Holdings Limited, Cyprus	Not applicable	Subsidiary	100%	2(87)
19.	Redcliffe Holdings Limited, Cyprus	Not applicable	Subsidiary	100% (99.9% through its subsidiary Imperial Energy Limited and 0.01% through its subsidiary Imperial Energy Nord Limited)	2(87)
20.	Imperial Frac Services (Cyprus) Limited, Cyprus	Not applicable	Subsidiary	100%	2(87)
21.	San Agio Investments Limited, Cyprus	Not applicable	Subsidiary	100% (held through its subsidiary Redcliffe Holdings Limited)	2(87)
22.	LLC Sibinterneft, Russian Federation	Not applicable	Subsidiary	55.9% (held through its subsidiary Imperial Energy Tomsk Limited)	2(87) I __
23.	LLC Allianceneftegaz, Russian Federation	Not applicable	Subsidiary	100% (held through its subsidiary Imperial Energy (Cyprus) Limited)	2(87)
24.	LLC Nord Imperial, Russian Federation	Not applicable	Subsidiary	100% (held through its subsidiary Imperial Energy Nord Limited)	2(87)
25.	LLC Rus Imperial Group, Russian Federation	Not applicable	Subsidiary	100% (held through its subsidiary Redcliffe Holdings Limited)	2(87)
26.	LLC Imperial Frac Services	Not applicable	Subsidiary	50% (held through its subsidiary Imperial Frac Services (Cyprus) Limited)	2(87)
Â	(c) Indirect Subsidiaries through CARABOBO ONE AB	Â	Â	Â	Â
27.	Petro Carabobo Ganga B.V., Netherlands	Not applicable	Subsidiary	100% (100% ordinary shares ownership through Carabobo One AB & 100% Preference shares ownership through ONGBV)	2(87)
Â	(d) Indirect Subsidiaries through ONGC Videsh Singapore Pte. Ltd.	Â	Â	Â	Â
28.	ONGC Videsh Vankorneft Pte. Ltd.	Not applicable	Subsidiary	100%	2(87)

 

 

 

SI. No.	Name and Address of the company	CIN/GLN	Subsidiary/ Joint Venture Associate	% of Shares Held by ONGC	Applicable Section
Associates/ Joint Ventures
1.	Mangalore SEZ Limited 3rd Floor, Mangalore Urban Development Authority (MUDA) Building, Urwa Stores, Ashok Nagar Mangalore Dakshina KannadaKA 575006	U45209KA2006PLC038590	Associate/ Joint Venture	26%	2(6)
2.	ONGC Petro additions Ltd. 4th Floor, 35, Nutan Bharat Co-operating Housing Society Ltd. RC Dutt Road Alkapuri Vadodra- 390007	U23209GJ2006PLC060282	Associate	49.36%	2(6)
3.	ONGC Tripura Power Co. Ltd. Udaipur- Kakraban Road, Palatana, PO, District Gomati Udaipur- 799105	U40101TR2004PLC007544	Associate/ Joint Venture	50.00%	2(6)
4.	ONGC TERI Biotech Ltd TERI, Darbari Seth Block, IHC Complex, Lodhi Road, New Delhi- 110003	U74120DL2007PLC 161117	Associate	49.98%	2(6)
5.	Dahej SEZ Limited Block No. 14, 3rd Floor, Udyog Bhavan, Sector- 11 Gandhinagar, Gujrat - 382017	U45209GJ2004PLC044779	Associate	50%	2(6)
6.	Indradhanush Gas Grid Limited (date of incorporation 10.08.2018) 122A, G.S Road, Christian Basti, Guwahati AS 781005	U40300AS2018GOIO18660	Associate/ Joint Venture	20%	2(6)
7.	Rohini Heliport Limited (date of incorporation 07.01.2019) Rohini Heliport, Ground Floor Sector-36, Rohini New Delhi-110085	U62100DL2019GOI343879.	Associate	49%	2(6)
8.	Pawan Hans Limited Rohini Heliport, Sector-36 North West Delhi , New Delhi-110085	U62200DL1985GOI022233	Associate	49.00%	2(6)
9.	Petronet LNG Limited 1st Floor, World Trade Centre, Babar Road, New Delhi- 110001	L74899DL1998PLC093073	Joint Venture	12.50%	2(6)

IV. Share Holding Pattern (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Share Holding

Category of Shareholders	No. of Shares held at the beginning of the year				No. of Shares held at the end of the year				% Change during the year
Â	Demat	Physical	Total	% of total Shares	Demat	Physical	Total	% of total Shares	Â
A. Promoters	Â	Â	Â	Â	Â	Â	Â	Â	Â
(1) Indian	Â	Â	Â	Â	Â	Â	Â	Â	Â
a) Individual/ HUF	-	-	-	-	-	-	Â	Â	Â
b) Central Govt.	8,69,00,32,256	'	8,69,00,32,256	67.72	8,08,26,85,420	'	8,08,26,85,420	64.25	(3.47)
c) State Govt(s)	~	~	~	~	Â	~	Â	Â	Â
d) Bodies Corp.	~	~	~	~	Â	~	Â	Â	Â
e) Banks/FI	-	-	-	-	Â	-	Â	Â	Â
f) Any Other...	-	-	-	-	Â	-	Â	Â	Â
Sub-total(A)(l):-	8,69,00,32,256	'	8,69,00,32,256	67.72	8,08,26,85,420	'	8,08,26,85,420	64.25	(3.47)
(2) Foreign	Â	Â	Â	Â	Â	Â	Â	Â	Â
a) NRIs- Individuals	-	-	-	-	-	-	-	-	-
b) Other-Individuals	-	-	-	-	-	-	-	-	-
c) Bodies Corp.	-	-	-	-	-	-	-	-	-
d) Banks/FI	-	-	-	-	-	-	-	-	-
e) Any Other...	-	-	-	-	-	-	-	-	-
Sub-total(A)(2):-	-	-	-	-	-	-	-	-	-
Total Shareholding of Promoter (A)= (A)(l)f (A)(2)	8,69,00,32,256	Â	8,69,00,32,256	67.72	8,08,26,85,420	Â	8,08,26,85,420	64.25	(3.47)
B. Public Shareholding	Â	Â	Â	Â	Â	Â	Â	Â	Â
1 . Institutions	Â	Â	Â	Â	Â	Â	Â	Â	Â
a) Mutual Funds	34,14,14,893	6300	34,14,21,193	2.66	62,93,82,081	3150	62,93,85,231	5.00	2.34
b) Banks/FI	11,33,90,044	60	11,33,90,104	0.88	11,06,37,911	30	11,06,37,941	0.88	0.00
c) Central Govt	-	-	-	-	-	-	-	-	Â
d) State Govt(s)	-	-	-	-	-	-	-	-	Â
e) Venture Capital Funds	-	-	-	-	-	-	-	-	Â
f) Insurance Companies	1,24,51,72,348	8550	1,24,51,80,898	9.70	1,23,93,85,940	8550	1,23,93,94,490	9.85	0.15
g) FIIs	70,20,33,402	0.00	70,20,33,402	5.47	81,35,40,442	0	81,35,40,442	6.47	1.00
h) Foreign Venture Capital Funds	-	-	-	-	-	-	-	-	-
i) Others (specify)	Â	Â	Â	Â	Â	Â	Â	Â	Â
Foreign banks	1,800	-	1,800	-	1,800	-	1,800	-	Â
Alternate Investment Funds	-	-	-	-	1,92,962	0	1,92,962	Â	Â
Sub-total(B)(l):-	2,40,20,12,487	14910	2,40,20,27,397	18.71	2,79,31,41,136	11,730	2,79,31,52,866	22.20	3.48
2. Non- Institutions	Â	Â	Â	Â	Â	Â	Â	Â	Â
a) Bodies Corp. i) Indian ii) Overseas	1,44,97,30,114	12,910	1,44,97,43,024	11.30	1,29,63,00,416	45,28,163	1,40,86,40,945	11.20	(0.10)
b) Individuals i) Individual Shareholders holding nominal share capital upto Rs. 1 lakh ii) Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	22,18,61,000 2,19,70,788	11,33,938 4,500	22,29,94,938 2,19,75,288	1.74 0.17	21,23,51,884 1,75,81,452	8,97,934 0	21,32,49,818 1,75,81,452	1.70 0.14	(0.04) (0.03)
c) Others (specify)	Â	Â	Â	Â	Â	Â	Â	Â	Â
Non Resident Indians	85,15,476	45,183	85,60,659	0.07	83,45,883	20,883	83,66,766	0.07	0.00
Clearing Members/ others	29,63,893	63,34,042	92,97,935	0.07	2,58,13,836	0	2,58,13,836	0.21	0.14
Trusts	2,86,01,414	0	2,86,01,414	0.22	3,07,85,834	0	3,07,85,834	0.24	0.02
Foreign Nationals	2,269	0	2,269	-	2,269	0	2,269	-	0.00
Sub-total(B)(2):-	1,73,36,44,954	75,30,573	1,74,11,75,527	13.57	1,59,11,81,574	54,46,980	1,70,44,40,920	13.55	(0.01)
Total Public Shareholding (B)=(B)(1)+(B)(2)	4,13,56,57,441	75,45,483	4,14,32,02,924	32.28	4,38,43,22,710	54,58,710	4,49,75,93,786	35.75	3.47
C. Shares held by Custodian for GDRs & ADRs	Â	Â	Â	Â	Â	Â	Â	Â	Â
Grand Total (A+B+C)	12,82,56,89,697	75,45,483	12,83,32,35,180	100.00	12,46,70,08,130	54,58,710	12,58,02,79,206	100.00	0.00

 

(ii) Shareholding of Promoters

SI. No.	Shareholder s Name	Shareholding at the beginning of the year			Shareholding at the end of the year			% change in shareholding during the year
		No. of Shares	% of total Shares of the Company	% of Shares Pledged/ encumbered to total shares	No. of Shares	% of total Shares of the Company	% of Shares Pledged/ encumbered to total shares
1.	President of India	8690032256	67.72	—	8082685420	64.25	-	(3.47)
Â	Total	8690032256	67.72	-	8082685420	64.25	-	(3.47)

(iii) Change in Promoter's Shareholding (please specify, if there is no change)

SI. No.	Particulars	Shareholding at the beginning of the year		Cumulative Shareholding during the year
Â	Â	No. of shares	% of total shares of the company	No. of shares	% of total shares of the company
1.	At the beginning of the year	8,69,00,32,256	67.72	Â	Â
2.	Date wise Increase/ (Decrease) in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	(3,03,03,519) Disinvestment (transfer to Bharat ETF 22) 22.06.2018	(0.236)	8,65,97,28,737	67.48
		(23,54,71,251) Disinvestment (transfer to Bharat ETF 22) 04.12.2018	(1.835)	8,42,42,57,486	65.64
		(5,15,02,420) Disinvestment (transfer to Bharat ETF 22) 08.02.2019	(0.40)	8,37,27,55,066	65.24
		(15,80,74,124) (Buy-back from Government of India) Buy-back Completed on 22.02.2019	(1.23)	8,21,46,80,942	*65.30
		(13,19,95,522) Disinvestment (transfer to Bharat ETF 22) 27.03.2019	(1.05)	8,08,26,85,420	64.25
3.	At the end of the year	Â	Â	8,08,26,85,420	64.25

$Pre Buy-back [total number of Equity Shares- 12,83,32,35,180]

* Post-buy back [total number of Equity Shares -12,58,02,79,206 has been considered)

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

SI. No.	Particulars	Shareholding at the beginning of the year		Cumulative Shareholding during the year
	For Each of the top 10 Shareholders	No. of shares	% of total shares of the company	No. of shares	% of total shares of the company
Â	At the beginning of the year	Details are placed at appendix
Â	Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/ transfer/bonus/sweat equity etc):
Â	At the End of the year (or on the date of separation, if separated during the year)
Â	Â	Â	Â	Â	Â

(v) Shareholding of Directors and Key Managerial Personnel:

SI. No.	Particulars	Shareholding at the beginning of the year		Cumulative Shareholding during the year
		No. of shares	% of total shares of the company	No. of shares	% of total shares of the company
(A)	At the beginning of the year	Â	Â	Â	Â
(B)	Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	There was no change in the shareholding of Directors and KMP during the year
(C)	At the End of the year	Â	Â	Â	Â
Â	Shri Shashi Shanker (CMD)	5568	-	5568	-
Â	Shri Desh Deepak Misra, Director (HR) ceased w.e.f. 30.06.2018	2250	-	-	-
Â	Shri Ajay Kumar Dwivedi, Director (Exploration)	1230	-	1230	-
Â	Shri Subhash Kumar, Director (Finance)	30	-	30	-
Â	Shri Rajesh Kakkar, Director (Offshore)	4758	-	4758	-
Â	Shri N.C Pandey, Director(T&FS) (appointed w.e.f. 29.10.2018)*	NA	-	600	-
Â	Smt. Alka Mittal, Director(HR) (appointed w.e.f. 27.11.2018)*	NA	-	10428	-
Â	Shri Ajai Malhotra, Independent Director	1650	-	1650	-
Â	Dr. Santrupt B. Misra, Independent Director	630	-	630	-
Â	Smt. Ganga Murthy, Independent Director appointed on .23.09.2017	455	-	435	-

The above shareholdings of Directors are negligible. Other Directors and KMP s did not hold any share during the year. *These directors' shareholdings remain unchanged from their respective date of joining the Board.

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment

(Rs. in million)

Particulars	Secured Loans excluding deposits	Unsecured Loans	Deposits	Total Indebtedness
I. Indebtedness at the beginning of the financial year	Â	Â	Â	Â
i) Principal Amount	-	255922	-	255922
ii) Interest due but not paid	-	-	-	-
iii) Interest accrued but not due	-	12	-	12
Total (i+ii+iii)	-	255,934	-	255,934
II. Change in Indebtedness during the financial year	-	Â	Â	Â
Additions	-	9,77,087	-	977087
Reduction	-	10,16,914	-	1016914
Net Change	-	(39,827)	-	(39,827)
III. Indebtedness at the end of the financial year	Â	Â	Â	Â
i) Principal Amount	-	2,15,936	-	2,15,936
ii) Interest due but not paid	-	-	-	-
iii) Interest accrued but not due	-	170	-	170
Total (I+II+III)	-	2,16,106	-	2,16,106

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Remuneration to Managing Director, Whole-time Directors and/or Manager:

SI. No.	Particulars of Remuneration	Name of MD/WTD/Manager								Total Amount (Rs) in million
Â	Â	Shri Shashi Shanker	Shri A.K. Dwivedi	Shri Subhash Kumar	Shri Rajesh Kakkar	Shri S.K Moitra	Shri N.C Pandey	Shri D.D. Misra	Dr. Alka Mittal
Â	Â	CMD & CEO	Director (Exploration)	Director (Finance) and CEO	Director (Offshore)	Director (Onshore) w.e.f. 18.04.2018	Director (T&FS) w.e.f. 29.10.2018	Director (HR) upto 30.06.2018	Director (HR) w.e.f. 27.11.2018
1.	Gross salary	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961	3.72	3.71	3.58	3.39	3.51	3.50	0.63	4.12	26.16
Â	(b) Value of perquisites u/s 17(2) Income-tax Act, 1961	1.66	1.69	0.33	1.41	1.31	1.20	0.49	0.31	8.40
Â	(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961	Â	Â	Â	Â	Â	Â	Â	Â	Â
2.	Stock Option	Â	Â	Â	Â	Â	Â	Â	Â	Â
3.	Sweat Equity	Â	Â	Â	Â	Â	Â	Â	Â	Â
4.	Commission	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	- As % of profit	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	- Others, specify.	Â	Â	Â	Â	Â	Â	Â	Â	Â
5.	Others- please specify	Â	Â	Â	Â	Â	Â	Â	Â	Â
	Leave encashment/ gratuity on retirement	Â	Â	Â	Â	Â	Â	4.14	Â	4.14
	Performance incentive provision/ payment	3.22	2.66	2.12	2.41	2.52	1.04	0.61	0.81	15.39
	Contribution to PF	0.81	0.80	0.70	0.72	0.76	0.76	0.18	0.74	5.47
	Provision for leave , gratuity and post-retirement benefits as per AS-15	0.71	0.57	0.12	0.81	0.64	0.75	0.59	0.50	4.69
Â	Total (A)	10.12	9.43	6.85	8.74	8.74	7.25	6.64	6.48	64.25
Â	Overall ceiling as per the Act			Not applicable, as Section 197 of the Companies Act 2013 has been exempted to Government Companies.

B. Remuneration to other Directors:

SI. No.	Particulars of Remuneration	Name of Directors									Total Amount (Rs) in million
Â	Â	Shri Ajai Malhotra	Prof. Shireesh Balwant Kedare	Shri K M. Padmanabhan	Shri Deepak Sethi	Shri Vivek Mallya	Shri Sumit Bose	Dr. Santrupt B. Misra	Smt. Ganga Murthy	Shri S ambit Patra	Â
1.	Independent Directors	1.24	0.90	0.91	0.79	1.08	0.99	0.62	0.87	0.61	8.01
Â	• Fee for attending Board / Board level Committee meetings	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	• Commission	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	• Others, please specify	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	Total (1)	1.24	0.90	0.91	0.79	1.08	0.99	0.62	0.87	0.61	8.01
2.	Other Non-Executive Directors	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	• Fee for attending board committee meetings	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	• Commission	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	• Others, please specify	Â	Â	Â	Â	Â	Â	Â	Â	Â	Â
Â	Total (2)	-	-	-	-	-	-	-	-	-	Â
Â	Total (B)=(l+2)	1.24	0.90	0.91	0.79	1.08	0.99	0.62	0.87	0.61	8.01
Â	Total Managerial Remuneration										72.26
Â	Ceiling as per the Act	Not applicable, as section 197 of Companies Act, 2013 shall not apply to Government Companies.

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGERAVTD

SI. No.	Particulars of Remuneration	Key Managerial Personnel			Total Amount (Rs) in million
Â	Â	CEO*	Company Secretary	CFO*	Â
Â	Â	Â	Shri M E V Selvamm	Â	Â
1.	Gross salary	NA	Â	NA	Â
Â	(a) Salary as per provisions contained in Section 17(1) of the Income-Tax Act, 1961	NA	2.68	NA	2.68
Â	(b) Value of perquisites u/s 17(2) Income- Tax Act, 1961	NA	0.47	NA	0.47
Â	(c) Profit in lieu of salary under section 17(3) of Income Tax Act, 1961	NA	Â	NA	Â
2.	Stock Option	NA	Â	NA	Â
3.	Sweat Equity	NA	Â	NA	Â
4.	Commission - As % of Profit - Other, specify	NA	Â	NA	Â
5.	Others- Provision for PRP, Provision under As-15, Contribution to CSSS, PF, EPS, Reimbursement of employer paid taxes, Reimbursement not included under 17(2)	NA	1.72	NA	1.72
Â	Total	Â	4.87	Â	4.87

* refer para VI above

VII. Penalties/Punishment/Compounding of offences:

Type	Section of the Companies Act		Brief Description	Details of Penalty/ Punishment/ Compounding fees imposed	Authority [RD/NCLT/ COURT]	Appeal made, if any (give Details)
A. Company	Â		Â	Â	Â	Â
Penalty	NIL		NIL	NIL	NIL	NIL
Punishment	NIL		NIL	NIL	NIL	NIL
Compounding	NIL		NIL	NIL	NIL	NIL
B. Directors	Â		Â	Â	Â	Â
Penalty	NIL		NIL	NIL	NIL	NIL
Punishment	NIL		NIL	NIL	NIL	NIL
Compounding	NIL		NIL	NIL	NIL	NIL
C. Other Officers In Default		Â	Â	Â	Â	Â
Penalty	NIL		NIL	NIL	NIL	NIL
Punishment	NIL		NIL	NIL	NIL	NIL
Compounding	NIL		NIL	NIL	NIL	NIL
Â	Â	Â	Â	Â	Â	Â

Appendix to Annexure - D

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(1) LIFE INSURANCE CORPORATION OF INDIA		No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	1,191,033,234	9.28
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
29-Mar-19	Purchase	1,152,597	Â	Â	Â
(C ) At the end of the year (or on the date of separartion, if seperated during the year)	Â	Â	Â	1,192,185,831	9.48

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Change in Shareholding		Cumulative Shareholding during the year
(2) INDIAN OIL CORPORATION LIMITED	No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	986,885,142	7.69
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â
(C ) at the end of the year ( or on the date of separartion, if seperated during the year)	Â	Â	986,885,142	7.84

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Change in Shareholding		Cumulative Shareholding during the year
(3) GAIL (INDIA) LIMITED	No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	30,84,01,602	2.40
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â
(C ) at the end of the year ( or on the date of separartion, if seperated during the year)	Â	Â	30,84,01,602	2.45

Note :-Pre Buy-back [total number of Shares -12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(4) ICICI PRUDENTIAL VALUE FUND - SERIES 9		No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	150,142,162	1.17
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
06-Apr-18	Purchase	1,804,855	Â	151,947,017	1.18
13-Apr-18	Purchase	1,208,948	Â	153,155,965	1.19
20-Apr-18	Purchase	2,017,279	Â	155,173,244	1.21
27-Apr-18	Purchase	2,046,569	Â	157,219,813	1.23
04-May-18	Purchase	4,461,622	Â	161,681,435	1.26
ll-May-18	Sale	313,263	Â	161,368,172	1.26
18-May-18	Sale	714,066	Â	160,654,106	1.25
25-May-18	Purchase	265,693	Â	160,919,799	1.25
01-Jun-18	Purchase	10,857,609	Â	171,777,408	1.34
08-Jun-18	Purchase	6,435,629	Â	178,213,037	1.39
15-Jun-18	Purchase	3,665,542	Â	181,878,579	1.42
22-Jun-18	Purchase	1,254,135	Â	183,132,714	1.43
29-Jun-18	Purchase	38,012,016	Â	221,144,730	1.72
06-Jul-18	Sale	3,493,387	Â	217,651,343	1.70
13-Jul-18	Sale	2,676,678	Â	214,974,665	1.68
20- Jul- 18	Sale	1,254,003	Â	213,720,662	1.67
27- Jul- 18	Sale	2,617,582	Â	211,103,080	1.64
03-Aug-18	Sale	7,583,949	Â	203,519,131	1.59
10-Aug-18	Sale	3,372,176	Â	200,146,955	1.56
17-Aug-18	Sale	1,538,245	Â	198,608,710	1.55
24-Aug-18	Purchase	2,141,788	Â	200,750,498	1.56
28-Aug-18	Sale	5,887,975	Â	194,862,523	1.52
31-Aug-18	Purchase	1,367,117	Â	196,229,640	1.53
07-Sep-18	Sale	769,134	Â	195,460,506	1.52
14-Sep-18	Purchase	3,413,598	Â	198,874,104	1.55
21-Sep-18	Sale	2,755,060	Â	196,119,044	1.53
28-Sep-18	Sale	1,256,521	Â	194,862,523	1.52
05-Oct-18	Sale	1,669,514	Â	193,193,009	1.51
12-0ct-18	Purchase	1,732,079	Â	194,925,088	1.52
19-Oct-18	Sale	1,550,579	Â	193,374,509	1.51
26-Oct-18	Sale	2,768,483	Â	190,606,026	1.49
02-Nov-18	Purchase	442	Â	190,606,468	1.49
09-Nov-18	Purchase	2,696,359	Â	193,302,827	1.51
16-Nov-18	Purchase	113,933	Â	193,416,760	1.51
23-Nov-18	Purchase	290,975	Â	193,707,735	1.51
30-Nov-18	Sale	364,986	Â	193,342,749	1.51
07-Dec-18	Purchase	10,342,322	Â	203,685,071	1.59
14-Dec-18	Purchase	14,547,732	Â	218,232,803	1.70
21 -Dec- 18	Purchase	8,690,985	Â	226,923,788	1.77
28-Dec-18	Purchase	12,727,836	Â	239,651,624	1.87
31 -Dec- 18	Purchase	16,535,376	Â	256,187,000	2.00
04- Jan- 19	Sale	4,416,233	Â	251,770,767	1.96
11-Jan-19	Purchase	17,768,228	Â	269,538,995	2.10
18- Jan- 19	Purchase	3,859,237	Â	273,398,232	2.13
25-Jan-19	Sale	381,628	Â	273,016,604	2.13
01-Feb-19	Sale	1,190,197	Â	271,826,407	2.12
08-Feb-19	Purchase	2,387,731	Â	274,214,138	2.14
15-Feb-19	Purchase	861,090	Â	275,075,228	2.14
22-Feb-19	Purchase	45,798,496	Â	320,873,724	2.50
01-Mar-19	Sale	33,184,080	Â	287,689,644	2.29
08-Mar-19	Sale	14,777,006	Â	272,912,638	2.17
15-Mar-19	Sale	8,145,785	Â	264,766,853	2.10
22-Mar-19	Purchase	313,710	Â	265,080,563	2.11
27-Mar-19	Sale	156,988	Â	264,923,575	2.11
29-Mar-19	Sale	695,040	Â	264,228,535	2.10
( C) at the end of the year ( or on the date of separation if separated during the year	Â	Â	Â	264,228,535	2.10

 

 

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(5) RELIANCE CAPITAL TRUSTEE CO LTD.A/C RELIANCE EQUITY HYBRID FUND		No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	7,44,28,208	0.58
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
06-Apr-18	Sale	263,463	Â	74,164,745	0.58
13-Apr-18	Purchase	1,238,109	Â	75,402,854	0.59
20-Apr-18	Sale	499,001	Â	74,903,853	0.58
27-Apr-18	Sale	491,301	Â	74,412,552	0.58
04-May-18	Sale	124,404	Â	74,288,148	0.58
11-May-18	Sale	572,625	Â	73,715,523	0.57
18-May-18	Purchase	193,000	Â	73,908,523	0.58
25-May-18	Sale	27,788	Â	73,880,735	0.58
01-Jun-18	Sale	4,497,258	Â	69,383,477	0.54
08-Jun-18	Sale	3,062,120	Â	66,321,357	0.52
15-Jun-18	Sale	61,838	Â	66,259,519	0.52
22-Jun-18	Sale	18,443	Â	66,241,076	0.52
29-Jun-18	Sale	2,709,603	Â	63,531,473	0.50
06-Jul-18	Purchase	802,861	Â	64,334,334	0.50
13-Jul-18	Sale	1,584,362	Â	62,749,972	0.49
20-Jul-18	Sale	628,257	Â	62,121,715	0.48
27-Jul18	Sale	74,306	Â	62,047,409	0.48
03-Aug-18	Sale	601,882	Â	61,445,527	0.48
10-Aug-18	Sale	105,785	Â	61,339,742	0.48
17-Aug-18	Sale	64,573	Â	61,275,169	0.48
24-Aug-18	Purchase	47,598	Â	61,322,767	0.48
28-Aug-18	Sale	1,617,605	Â	59,705,162	0.47
31-Aug-18	Purchase	866,066	Â	60,571,228	0.47
07-Sep-18	Purchase	98,030	Â	60,669,258	0.47
14-Sep-18	Sale	236,001	Â	60,433,257	0.47
21-Sep-18	Sale	122,109	Â	60,311,148	0.47
28-Sep-18	Sale	605,986	Â	59,705,162	0.47
05-Oct-18	Purchase	1,714,025	Â	61,419,187	0.48
12-0ct-18	Purchase	374,860	Â	61,794,047	0.48
19-0ct-18	Purchase	508,549	Â	62,302,596	0.49
26-Oct-18	Sale	13,797,149	Â	48,505,447	0.38
02-Nov-18	Purchase	1,223,230	Â	49,728,677	0.39
09-Nov-18	Purchase	47,583	Â	49,776,260	0.39
16-Nov-18	Sale	1,458,869	Â	48,317,391	0.38
23-Nov-18	Sale	408,921	Â	47,908,470	0.37
30-Nov-18	Sale	3,550,572	Â	44,357,898	0.35
07-Dec-18	Purchase	234,536,161	Â	278,894,059	2.17
14-Dec-18	Sale	67,043,089	Â	211,850,970	1.65
21 -Dec- 18	Sale	24,045,220	Â	187,805,750	1.46
28-Dec-18	Sale	14,579,835	Â	173,225,915	1.35
31 -Dec- 18	Purchase	4,859,447	Â	178,085,362	1.39
04- Jan- 19	Purchase	3,357,971	Â	181,443,333	1.41
11-Jan-19	Sale	19,905,358	Â	161,537,975	1.26
18- Jan- 19	Sale	4,423,725	Â	157,114,250	1.22
25-Jan-19	Sale	2,199,004	Â	154,915,246	1.21
01-Feb-19	Sale	24,862,347	Â	130,052,899	1.01
08-Feb-19	Sale	2,914,952	Â	127,137,947	0.99
15-Feb-19	Sale	1,808,771	Â	125,329,176	0.98
22-Feb-19	Sale	6,829,788	Â	118,499,388	0.92
01-Mar-19	Sale	15,744,144	Â	102,755,244	0.82
08-Mar-19	Purchase	298,944	Â	103,054,188	0.82
15-Mar-19	Sale	1,373,373	Â	101,680,815	0.81
22-Mar-19	Sale	4,281,133	Â	97,399,682	0.77
27-Mar-19	Purchase	133,737,462	Â	231,137,144	1.84
29-Mar-19	Sale	7,995,681	Â	223,141,463	1.77
(C ) at the end of the year ( or on the date of separartion, if seperated during the year)	Â	Â	Â	223,141,463	1.77

 

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(6) GOVERNMENT PENSION FUND GLOBAL		No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	6,08,75,599	0.47
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
06-Apr-18	Purchase	417,778	Â	61,293,377	0.48
20-Apr-18	Purchase	861,223	Â	62,154,600	0.48
11-May-18	Purchase	572,039	Â	62,726,639	0.49
18-May-18	Purchase	1,030,196	Â	63,756,835	0.50
25-May-18	Purchase	250,000	Â	64,006,835	0.50
01-Jun-18	Purchase	1,967,238	Â	65,974,073	0.51
08-Jun-18	Purchase	7,695,273	Â	73,669,346	0.57
15-Jun-18	Sale	1,070,754	Â	72,598,592	0.57
22-Jun-18	Purchase	1,346,675	Â	73,945,267	0.58
29-Jun-18	Purchase	173,035	Â	74,118,302	0.58
20-Jul-18	Purchase	1,090,000	Â	75,208,302	0.59
28-Aug-18	Sale	347,455	Â	74,860,847	0.58
31-Aug-18	Purchase	1,264,149	Â	76,124,996	0.59
07-Sep-18	Sale	256,844	Â	75,868,152	0.59
14-Sep-18	Purchase	119,582	Â	75,987,734	0.59
21-Sep-18	Sale	1,126,887	Â	74,860,847	0.58
12-0ct-18	Sale	2,586,281	Â	72,274,566	0.56
26-Oct-18	Sale	7,114,408	Â	65,160,158	0.51
02-Nov-18	Sale	5,507,934	Â	59,652,224	0.46
09-Nov-18	Sale	3,631,993	Â	56,020,231	0.44
16-Nov-18	Sale	3,164,093	Â	52,856,138	0.41
23-Nov-18	Sale	403,355	Â	52,452,783	0.41
30-Nov-18	Sale	277,268	Â	52,175,515	0.41
07-Dec-18	Sale	813,485	Â	51,362,030	0.40
14-Dec-18	Sale	716,361	Â	50,645,669	0.39
11 -Jan- 19	Sale	2,327,408	Â	48,318,261	0.38
22-Feb-19	Sale	4,218,296	Â	44,099,965	0.34
(C ) at the end of the year ( or on the date of separartion, if seperated during the year)	Â	Â	Â	44,099,965	0.34

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(7) VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS	Â	No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	5,12,40,853	0.40
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
04-May-18	Sale	95,860	Â	51,144,993	0.40
11 -May- 18	Sale	91,067	Â	51,053,926	0.40
Ol-Jun-18	Sale	71,895	Â	50,982,031	0.40
15-Jun-18	Sale	71,895	Â	50,910,136	0.40
22-Jun-18	Sale	1,961,783	Â	48,948,353	0.38
29-Jun-18	Sale	314,424	Â	48,633,929	0.38
06-Jul-18	Sale	128,628	Â	48,505,301	0.38
13-Jul-lS	Sale	204,852	Â	48,300,449	0.38
16-Nov-18	Purchase	71,475	Â	48,371,924	0.38
23-Nov-18	Purchase	185,835	Â	48,557,759	0.38
07-Dec-18	Purchase	90,535	Â	48,648,294	0.38
21 -Dec- 18	Purchase	257,310	Â	48,905,604	0.38
28-Dec-18	Sale	718,389	Â	48,187,215	0.38
01-Feb-19	Purchase	276,022	Â	48,463,237	0.38
08-Feb-19	Purchase	371,202	Â	48,834,439	0.38
22-Feb-19	Sale	2,379,542	Â	46,454,897	0.36
08-Mar-19	Purchase	1,097,856	Â	47,552,753	0.38
15-Mar-19	Purchase	1,461,993	Â	49,014,746	0.39
(C ) at the end of the year (or on the date of separartion, if seperated during the year)	Â	Â	Â	49,014,746	0.39

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(S)VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND		No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	4,14,71,258	0.32
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
06- Apr- 18	Purchase	201,160	Â	41,672,418	0.32
27- Apr- 18	Purchase	88,188	Â	41,760,606	0.33
04-May-18	Purchase	442,022	Â	42,202,628	0.33
25-May-18	Purchase	183,819	Â	42,386,447	0.33
08-Jun-18	Purchase	489,061	Â	42,875,508	0.33
29-Jun-18	Purchase	225,209	Â	43,100,717	0.34
06-Jul-18	Purchase	429,018	Â	43,529,735	0.34
13-Jul-18	Purchase	711,402	Â	44,241,137	0.34
24-Aug-18	Purchase	641,567	Â	44,882,704	0.35
28-Aug-18	Purchase	285,565	Â	45,168,269	0.35
31-Aug-18	Sale	285,565	Â	44,882,704	0.35
14-Sep-18	Purchase	285,565	Â	45,168,269	0.35
12-0ct-18	Purchase	413,297	Â	45,581,566	0.36
26-Oct-18	Purchase	288,260	Â	45,869,826	0.36
02-Nov-18	Purchase	591,293	Â	46,461,119	0.36
14-Dec-18	Purchase	246,182	Â	46,707,301	0.36
11 -Jan- 19	Purchase	364,414	Â	47,071,715	0.37
08-Feb-19	Purchase	399,895	Â	47,471,610	0.37
22-Feb-19	Sale	2,306,459	Â	45,165,151	0.35
08-Mar-19	Purchase	1,241,450	Â	46,406,601	0.37
15-Mar-19	Purchase	1,334,601	Â	47,741,202	0.38
(C ) at the end of the year ( or on the date of separartion, if seperated during the year)	Â	Â	Â	47,741,202	0.38

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(9)SBI EQUITY SAVINGS FUND	Â	No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	3,64,29,647	0.28
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
06- Apr- 18	Sale	2,971,177	Â	33,458,470	0.26
13-Apr-18	Purchase	76,201	Â	33,534,671	0.26
20- Apr- 18	Purchase	244,019	Â	33,778,690	0.26
27- Apr- 18	Purchase	301,677	Â	34,080,367	0.27
04-May-18	Purchase	279,346	Â	34,359,713	0.27
11 -May- 18	Purchase	372,033	Â	34,731,746	0.27
18-May-18	Purchase	296,930	Â	35,028,676	0.27
25-May-18	Purchase	196,473	Â	35,225,149	0.27
Ol-Jun-18	Purchase	831,161	Â	36,056,310	0.28
08-Jun-18	Purchase	201,533	Â	36,257,843	0.28
15-Jun-18	Purchase	185,415	Â	36,443,258	0.28
22-Jun-18	Sale	200,625	Â	36,242,633	0.28
29-Jun-18	Sale	116,385	Â	36,126,248	0.28
06-Jul-18	Purchase	210,325	Â	36,336,573	0.28
13-Jul-lS	Purchase	225,544	Â	36,562,117	0.28
20-Jul-18	Sale	459,563	Â	36,102,554	0.28
27-Jul-18	Purchase	189,077	Â	36,291,631	0.28
03-Aug-18	Purchase	624,913	Â	36,916,544	0.29
10-Aug-18	Purchase	262,301	Â	37,178,845	0.29
17-Aug-18	Purchase	92,252	Â	37,271,097	0.29
24-Aug-18	Purchase	247,258	Â	37,518,355	0.29
28-Aug-18	Purchase	1,291,537	Â	38,809,892	0.30
31-Aug-18	Sale	977,397	Â	37,832,495	0.29
07-Sep-18	Purchase	409,671	Â	38,242,166	0.30
14-Sep-18	Purchase	325,707	Â	38,567,873	0.30
21-Sep-18	Purchase	275,090	Â	38,842,963	0.30
28-Sep-18	Sale	33,071	Â	38,809,892	0.30
05-Oct-18	Purchase	279,073	Â	39,088,965	0.30
12-Oct-18	Purchase	61,954	Â	39,150,919	0.31
19-0ct-18	Purchase	144,956	Â	39,295,875	0.31
26-Oct-18	Sale	403,948	Â	38,891,927	0.30
02-Nov-18	Purchase	330,605	Â	39,222,532	0.31
09-Nov-18	Purchase	178,538	Â	39,401,070	0.31
16-Nov-18	Purchase	5,683,286	Â	45,084,356	0.35
23-Nov-18	Sale	3,744,161	Â	41,340,195	0.32
30-Nov-18	Sale	3,008,714	Â	38,331,481	0.30
07-Dec-18	Sale	781,716	Â	37,549,765	0.29
14-Dec-18	Sale	246,568	Â	37,303,197	0.29
21 -Dec- 18	Purchase	199,955	Â	37,503,152	0.29
28-Dec-18	Purchase	171,555	Â	37,674,707	0.29
31 -Dec- 18	Purchase	2,468,289	Â	40,142,996	0.31
04- Jan- 19	Purchase	8,290,357	Â	48,433,353	0.38
11 -Jan- 19	Purchase	564,173	Â	48,997,526	0.38
18- Jan- 19	Purchase	386,903	Â	49,384,429	0.38
25- Jan- 19	Purchase	423,738	Â	49,808,167	0.39
01-Feb-19	Purchase	1,546,470	Â	51,354,637	0.40
08-Feb-19	Purchase	772,755	Â	52,127,392	0.41
15-Feb-19	Sale	2,000,564	Â	50,126,828	0.39
22-Feb-19	Sale	833,482	Â	49,293,346	0.38
01-Mar-19	Purchase	470,733	Â	49,764,079	0.40
08-Mar-19	Purchase	3,241,709	Â	53,005,788	0.42
15-Mar-19	Sale	595,298	Â	52,410,490	0.42
22-Mar-19	Sale	1,069,024	Â	51,341,466	0.41
27-Mar-19	Purchase	285,742	Â	51,627,208	0.41
29-Mar-19	Sale	955,940	Â	50,671,268	0.40
(C ) at the end of the year ( or on the date of separartion, if seperated during the year)	Â	Â	Â	50,671,268	0.40

 

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

Name	Â	Change in Shareholding		Cumulative Shareholding during the year
(10) FIDELITY PURITAN TRUST FIDELITY SERIES INTRINSIC OPPORTUNITIES FUND	Â	No. of shares	% of total shares of the Company	No. of Shares	% of total shares of the Company
(A) At the beginning of the year	Â	Â	Â	2,70,00,000	0.21
(B) Date wise Increase/ Decrease in Shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):	Â	Â	Â	Â	Â
Date	Transaction	Â	Â	Â	Â
04-May-18	Purchase	1,500,000	Â	28,500,000	0.22
11 -May- 18	Purchase	700,000	Â	29,200,000	0.23
18-May-18	Purchase	1,000,000	Â	30,200,000	0.24
25-May-18	Purchase	800,000	Â	31,000,000	0.24
15-Jun-18	Purchase	500,000	Â	31,500,000	0.25
13-Jul-lS	Purchase	1,991,149	Â	33,491,149	0.26
20-Jul-lS	Purchase	1,508,851	Â	35,000,000	0.27
17-Aug-18	Purchase	435,832	Â	35,435,832	0.28
24-Aug-18	Purchase	1,064,168	Â	36,500,000	0.28
28-Aug-18	Purchase	3,500,000	Â	40,000,000	0.31
31-Aug-18	Sale	2,579,730	Â	37,420,270	0.29
07-Sep-18	Purchase	1,015,900	Â	38,436,170	0.30
14-Sep-18	Purchase	563,830	Â	39,000,000	0.30
21-Sep-18	Purchase	669,446	Â	39,669,446	0.31
28-Sep-18	Purchase	330,554	Â	40,000,000	0.31
12-0ct-18	Purchase	1,267,000	Â	41,267,000	0.32
19-0ct-18	Purchase	1,112,200	Â	42,379,200	0.33
26-Oct-18	Purchase	1,620,800	Â	44,000,000	0.34
02-Nov-18	Purchase	500,000	Â	44,500,000	0.35
16-Nov-18	Purchase	2,000,000	Â	46,500,000	0.36
07-Dec-18	Purchase	1,500,000	Â	48,000,000	0.37
14-Dec-18	Purchase	1,000,000	Â	49,000,000	0.38
21 -Dec- 18	Purchase	500,000	Â	49,500,000	0.39
04- Jan- 19	Purchase	200,000	Â	49,700,000	0.39
18- Jan- 19	Purchase	300,000	Â	50,000,000	0.39
08-Feb-19	Purchase	2,444,080	Â	52,444,080	0.41
15-Feb-19	Purchase	55,920	Â	52,500,000	0.41
22-Feb-19	Sale	2,642,384	Â	49,857,616	0.39
01 -Mar- 19	Purchase	2,643,000	Â	52,500,616	0.42
(C ) at the end of the year ( or on the date of separartion, if seperated during the year)	Â	Â	Â	52,500,616	0.42

Note :-Pre Buy-back [total number of Shares - 12,83,32,35,180]

Post-buy back w.e.f.22.02.2019 [total number of shares - 12,58,02,79,206 has been considered)

A. Energy conservation

a) The steps taken or impact on conservation of energy

1. Dynamic Gas Blending (DGB), a dual fuel technology, which enables to run diesel engines of drilling rig on a mix of diesel and gas, was implemented successfully on CAT 3512B engines in EV-2000-2 and E-1400-7 drilling rigs of Ankleshwar, and is under installation in E-1400-3. Assam Asset has also implemented the technology in one of its drilling rigs.

The implementation has enabled to reduce the diesel consumption on these two rigs by around 50% and to realize a net cumulative financial savings to the tune of Rs.91 million as on 31.03.2019. The initiative has also resulted in substantial reduction in stack emissions on these drilling rigs.

2. 65 KW Micro turbine generator commissioned in Lynch GGS of Mehsana Asset under flare gas reduction project. Around 14,000 units of electricity is being generated per day since 15.10.2018 and is consumed in the installation itself.

3. Around 2,07,000 LED lights have been installed so far across various work centres of the Company under implementation of LED lighting program through Energy Efficiency Services Ltd. This would realize into a monetary savings of about Rs.290 million per annum on electricity consumption on lighting.

4. ISO 50001- Energy Management System (EnMS) is being implemented in phased manner across various work centres. Desalter Plant-Nawagam, Ahmedabad and C2-C3 plant Dahej became the 6th and 7th ISO 50 001-certified installations.

5. Energy Audits were carried out in various rigs/ installations across the Company through in-house energy auditors, recommending measures for improvement in overall Energy efficiency. A total of 141 energy audits were carried out in 2018-19.

Annexure E

b) The steps for utilizing alternate sources of Energy

1. 4.995 MW cumulative capacity of Roof Top Solar (RTS) plants commissioned on various office buildings/ installations of the Company in Dehradun and Gujarat. RTS plants of 1.645 MW and 0.247 MW at Assam and Tripura respectively are under execution and planned to be completed by 30.04.2019.

2. 1 MW ground mounted solar power plant was commissioned in August 2018 at IPSHEM Goa, and installation of another 5 MW ground mounted solar power plant completed at Ankle shwar recently. The total installed solar power generation capacity now stands at 23 MW.

c) The capital investment on energy conservation equipment

1. The total capex on solar-based power plants commissioned during 2018-19 is Rs. 634.60 million.

The details are as under-Ground based 5MW at Vagra, Ankleshwar -Rs.357.60 million.

Ground based 1MW at IPSHEM, Goa - Rs.71.60 million.

Roof - Top 6.89 MW at different locations of ONGC-Rs.205.40 million.

2. The total capex on 65 KW Micro turbine commissioned during 2018-19 was Rs,13 million.

3. The total capex on DGB kit commissioned during 2018-19 was Rs.41.20 million.

d) Foreign Exchange Earnings and Outgo

Â	Â	(Rs. in Million)
Particulars	2018-19	2017-18
Foreign Exchange Earnings	34,224.20	35,524.51
Foreign Exchange Expenditure	191,982.86	169,246.86

Annexure F

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF OIL AND NATURAL GAS CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2019.

The preparation of financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March 2019 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139 (5) of the Act are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 30 May 2019.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March 2019 under section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to

inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors' report under section 143(6)(b) of the Act.

Â	For and on behalf of the
Â	Comptroller & Auditor General of India
Â	Sd/-
Â	Tanuja Mittal
Â	Principal Director of Commercial Audit & ex-officio Member Audit Board-II, Mumbai
Mumbai	Â
25 July 2019	Â

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) READ WITH SECTION 129 (4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF OIL AND NATURAL GAS CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2019

The preparation of consolidated financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March 2019 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139 (5)read with section 129 (4) of the Act are responsible for expressing opinion on the financial statements under section 143 read with section 129 (4) of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 30 May 2019.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the consolidated financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March 2019 under section 143(6)(a) read with section 129(4) of the Act. We conducted the supplementary audit of the financial statements of subsidiary/joint venture/ associate company(Annexure-I) but did not conduct supplementary audit of the financial statements of subsidiary/joint venture/associate company (Annexure-II) for the year ended on that date. Further, section 139(5) and 143 (6) (b) of the Act are not applicable to subsidiary/joint venture/ associate company(Annexure-III) being private entities incorporated in Foreign countries under the respective laws, for appointment of their Statutory Auditor and for

conduct of supplementary audit. Accordingly, Comptroller and Auditor General of India has neither appointed the Statutory Auditors nor conducted the supplementary audit of these companies. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors' report under section 143(6)(b) of the Act.

Â	For and on behalf of the Comptroller & Auditor General of India
Â	Sd/-
Â	Tanuja Mittal
Â	Principal Director of Commercial Audit & ex-officio Member Audit Board-II,
Mumbai	Mumbai
25 July 2019	Â

Annexure I Audit Conducted

Subsidiaries

1	Mangalore Refinery and Petrochemicals Limited
2	ONGC Mangalore Petrochemicals Limited
3	Hindustan Petroleum Corporation Limited
4	ONGC Videsh Limited
5	Petronet MHB Limited
6	HPCL Biofuels Limited
7	Prize Petroleum Company Limited

Joint Venture Entities

Associates -NIL

Annexure II Audit not conducted Joint Venture Entities - NIL

Associates

1	Pawan Hans Limited

Annexure III Audit not applicable Subsidiaries

1	HPCL Rajasthan Refinery Limited
2	ONGC Petro additions Limited

 

17.	LLC Allianceneftegaz
18.	LLC Nord Imperial
19.	LLC Rus Imperial Group
20.	LLC Imperial Frac Services
21.	Carabobo One AB
22.	Petro Carabobo GangaB.V.
23.	ONGC (BTC) Limited
24.	Beas Rovuma Energy Mozambique Limited
25.	ONGC Videsh Rovuma Limited
26.	ONGC Videsh Atlantic Inc.
27	ONGC Videsh Singapore Pte. Ltd
28	ONGC Videsh Vankorneft Pte. Ltd
29	Indus East Mediterranean Exploration Limited
32	HPCL Middle East FZCO

Joint Venture Entities

1.	ONGC Nile GangaB.V
2.	ONGC Campos Limited
3.	ONGC Nile Ganga (Cyprus) Ltd.
4.	ONGC Nile Ganga (San Cristobal) B.V
5.	ONGC Caspian E& PB.V
6.	ONGC Narmada Limited
7.	ONGC Amazon Alaknanda Limited
8.	Imperial Energy Limited
9.	Imperial Energy Tomsk Limited
10.	Imperial Energy (Cyprus) Limited
11.	Imperial Energy Nord Limited
12.	Biancus Holdings Limited
13.	Redcliff Holdings Limited
14.	Imperial Frac Services (Cyprus) Limited
15.	San Agio Investments Limited
16.	LLC Sibinterneft

 

1.	ONGC Mittal Energy Limited
2.	Mangalore SEZ Limited
3	ONGC Tripura Power Company Limited
4.	ONGC Teri Biotech Limited
5.	Dahej SEZ Limited
6.	Indradhanush Gas Grid Limited
7.	Shell MRPL Aviation Fuels & Services Limited (SMASL) (through MRPL)
8.	Mansarovar Energy Colombia Limited
9.	Himalaya Energy Syria BV
10.	SUDD Petroleum Operating Company

Associates

1	Tamba B.V.
2	Petro Carabobo S.A.
3	Carabobo Ingenieriav Construcciones S.A.
4	Petrolera Indovenezolana S.A.
5	South-East Asia Gas Pipeline Company Limited
6	JSC Vankorneft
7	Mozambique LNG1 Co Pte Ltd
8	Falcon Oil & Gas B.V
9	Petronet LNG Limited

 

---

Mar 31, 2018

Board's Report

Dear Members,

It gives me immense pleasure to present, on behalf of the Board of Directors of your Company, the 25^th Annual Report on the business and operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its Audited Financial Statements for the year ended March 31, 2018, together with the Auditors' Report and Comments (on the Accounts) of Comptroller and Auditor General (CAG) of India, thereon.

Your Company has steadfastly focused on organic growth through its exploratory endeavors and built a healthy hydrocarbon reserve profile to sustain growth in future. During FY'18, the Company registered Reserve Replacement Ratio (RRR) of 1.48 (with 2P reserves) and thereby maintaining RRR of more than one in the twelfth consecutive year. Twelve oil and gas discoveries were made in various basins of the country. With these discoveries, your Company accreted reserves (2P) of 67.83 million metric tonnes of oil and oil equivalent gas (MMtoe). This has been possible because of extensive exploration in known basins as well as frontier plays. Two out of 12 discoveries i.e., Mattur West-1/ (Cauvery onland) and Matar-1 (Cambay onland) have already been monetized and these prospects are producing since May 31, 2017 and January 30, 2018 respectively.

Domestic crude oil and natural gas production of your Company along with the share in domestic joint ventures (PSC-JVs) during FY'18 has been 50.04 MMtoe which is about 2.5% higher than FY'17 production (48.80 MMtoe). On standalone basis crude oil production from the Company operated fields has been 22.31 Million Metric Tonnes (MMT) against production of 22.25 MMT during FY'17. Considering the largely mature producing field portfolio, it highlights the Company's prudent reservoir management and effective technological interventions in improving the production. Natural gas production during FY'18 has been 23.48 Billion Cubic Metre (BCM) against 22.09 BCM during FY'17; an increase of 6.3 %. This is a significant achievement as it marks the second consecutive year that the Company has registered an increase in its domestic natural gas output.

Your Company's share in domestic Joint Ventures' production was 3.13 MMT of crude oil (3.29 MMT in FY'17) and 1.13 BCM of natural gas (1.18 BCM during

FY'17). Combining the two total domestic production has been 25.43 MMT of oil and 24.61 BCM of gas, Production of value added products increased by 4.7%; from 3.24 MMT in FY'17 to 3.39 MMT during the year, with contribution from C2-C3 and Hazira plants in Gujarat and Uran in Maharashtra.

All ventures of your Company established for value-chain integration i.e., ONGC Petro additions Ltd (OPaL), ONGC Mangalore Petrochemicals Ltd (OMPL), ONGC Tripura Power Company Ltd (OTPC), Dahej SEZ Ltd (DSEZ) and Mangalore SEZ Ltd (MSEZ) are now operational and started generating revenue.

Major Highlights:

Salient highlights with respect to performance of your Company during FY'18 are as below:

-    Your Company made 12 Oil and Gas discoveries; 6 in Onshore and 6 in Offshore. One discovery is in New Exploration and Licencing Policy (NELP) block. Two of these discoveries have already been put to production.

-    With these 12 discoveries, your Company accreted 67.83 MMtoe of 2P reserves in the domestic fields.

-    RRR (2P) for FY'18 was 1.48; more than One for 12 consecutive years.

-    Standalone Oil and Oil equivalent gas (O+OEG) output is 45.79 MMtoe; 3.3% higher than FY'17.

-    Onshore crude oil and natural gas production increased by 1.7% and 8.3% respectively.

-    Offshore gas production registered an increase of 5.7%.

-    Production of Value Added Products increased by 4.7%.

-    Revenue from Operations was at '850,041 million against '779,078 million in FY'17.

-    Profit After Tax (PAT) was at '199,453 million against '179,000 million during FY'17.

-    Acquisition of 51.11% stake in Hindustan Petroleum Corporation Limited (HPCL). With this acquisition, Company's refining capacity increased to 42.198 MMTPA; accounting 18% of country's total refining capacity.

-    The highest ever deployment of 37 rigs for offshore operations.

-    The highest in last 27 years drilling of 503 wells (119 exploratory and 384 development).

-    The overall Cycle Speed and Commercial Speed of exploratory and development drilling achieved during 2017-18 is the highest ever since inception and stood at 997 meter/ rig month and 1616 meter/ rig month respectively. An increase of more than 9% achieved in commercial speed compared to previous year.

-    4 projects worth '68,300 million (approx.) were completed.

-    Significant development of KG-DWN-98/2 block in Krishna-Godavari (KG) Basin with investment of about USD 5,076 million (approximately '340,000 million) leading to Peak oil production from the field to the extent of78,000 bpd and natural gas @16 Million Metric Standard Cubic Meter per Day (MMSCMD).

-    Gas sales increased from 17.06 BCM in FY'17 to 18.58 BCM an increase of 8.9%.

-    Gas flaring during the year reduced from 2.4% to 1.9%.

-    Farm-in/ Farm-out (FIFO) agreement signed with GSPC on March 10, 2017 to acquire 80% PI with operatorship in block KG-OSN-2001/3. Acquisition completed on August 04, 2017 with an investment of USD 1,195 million.

-    Commencement of Coal Bed Methane (CBM) field development operations in Bokaro and North Karanpura blocks in Jharkhand. Operations resumed in Jharia block. Techno-economic analysis was carried out in Raniganj block.

-    Revenue from Operations of the ONGC Group was '3,622,462 million and Profit After Tax was '221,059 million (attributable to owners) during FY'18.

-    ONGC Videsh Limited (OVL), a wholly owned subsidiary of your Company, registered highest-ever production of

14.16 MMtoe of O+OEG during the year. It recorded consolidated Revenue from Operations of Rs,104,176 million and consolidated Profit After Tax of Rs,9,815 million, attributable to owners(Rs,7,573 million in FY'17).

-    Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of your Company, recorded highest-ever throughput of 16.31 MMT during FY'18.

-    MRPL recorded 6.1% increase in Revenue from Operations to Rs,630,836 million (Rs,594,305 million in FY'17) and Profit After Tax of Rs,22,241 million (Rs,36,437 million in FY'17).

-    HPCL improved its Gross Refining Margin (GRM) to USD 7.40 per barrel during 2017-18 as compared to GRM of USD 6.20 per barrel in 2016-17.

Global Recognitions

Your Company has been ranked number one E&P Company in the world by Platts Top 250 Global Energy Company Rankings - 2017 and 11^th among global energy majors based on assets, revenues, profits and return on invested capital. The leading international business journal Forbes has ranked the Company 3^rd largest in India and 246^th worldwide based on sales, profit, assets and market value.

Details of new discoveries and new resources:

During the year 2017-18, your Company made 12 discoveries (5 new prospects and 7 new pools) of which 1 was in NELP acreage while other 11 were in Nomination acreages. The major success during the year was an Oil discovery from well WO-24-3 (WO-24-C) which has indicated potential of about 29.74 MMtoe of In-Place Hydrocarbon Volume in the discovery area and the discovery is under further assessment through appraisal exploratory efforts.

Details of these discoveries are as below:

Sl. No.	Basin	Well No.	PEL/PML/ NELP	HC Type	Prospect / Pool
1	AAFB- Tripura	Kunjaban-8	Kunjaban PML	Gas	Pool
2	AAFB- Cachar	Bhubandar-6	Bhubandar PML	Gas	Pool
3	Cambay Onland	West Matar-1	Matar PML	Oil	Prospect

 

Sl. No.	Basin	Well No.	PEL/PML/ NELP	HC Type	Prospect / Pool
4	Cambay Onland	ANOR-1*	CB-ONN-2005/10	Oil	Prospect
5	Cauvery Onland	Mattur West-1	L-II PML	Oil	Prospect
6	KG Onland	Vedireswaram-1	Godavari Onland PML	Gas	Pool
7	KG Offshore (SW)	GS-29-11	GS-29 EXT PML	Oil	Pool
8	KG Offshore (SW)	G-1-15	Godavari Onland PML	Gas	Pool
9	KG Offshore (SW)	GS-71-2	GS-15/23 PML	Oil	Pool
10	KG Offshore (DW)	GD-10-1	KG-OS-DW-III PEL	Gas	Prospect
11	KG Offshore (DW)	GS-29-8 SUB	GS-29 EXT PML	Oil	Pool
12	Mumbai Offshore (SW)	SW-WO-24/ WO-24-3	Mumbai High-S PML	Gas	Prospect
*NELP

Hydrocarbon Resource Re-assessment:

During the year, your Company was associated with Hydrocarbon Resource Re-assessment studies for all 26 sedimentary basins including Deep-waters. The assessment has since been completed and the reports were submitted to Director General of Hydrocarbons (DGH) on October 31, 2017. Results are encouraging and study points toward enhancement of prognosticated hydrocarbon resources.

National Seismic Program:

Your Company is committed to broaden its exploratory efforts by enhancing the basinal footprint in India. It is the major stakeholder in National Seismic Program (NSP) with 40,835 Line Kilometer (LKM) target out of the total target of 48,243 LKM. The Company has made concerted efforts for fast-track of data acquisition and interpretation. The 2D seismic data acquisition work has already commenced in 10 sectors i.e., Saurashtra, Raj asthan, Mahanadi, Deccan Synclise, Bhima, Kaladgi, Vindhyan and Himalayan Foreland areas in October 2016; Ganga, Cuddapah-Krishna Godavari in June, 2017; and South Rewa Damodar-Chhattisgarh in October 2017. 14,621.16 LKM of 2D data was acquired (besides ONGC's routine 2D/ 3D survey) during FY'18. In total, the Company has acquired 19,655 LKM of data. Processing and interpretation of data is under progress and expected to be completed by 2019-20.

Details of discoveries in NELP blocks

Your Company, as on April 01, 2018, had a total of 74 discoveries to its credit out of which 59 discoveries (18 in deep water, 21 in shallow water and 20 in onland areas) in 26 NELP blocks were made by the Company while remaining 15 discoveries were made by other operators in blocks that were later acquired by the Company. Out of the total 74 discoveries, 12 discoveries made by the Company have been relinquished.

Monetization Status as on April 01, 2018:

-    Your Company has monetized 6 onshore NELP discoveries in four onshore blocks viz. CB-ONN-2001/1(Nadiad-1), CB-ONN-2002/1 (West Patan-3), CB-ONN-2004/1 (Karannagar-1), CB-ONN-2004/2 (Vadatal-1, Vadatal-3, Vadatal-5) in Cambay Basin in the State of Gujarat.

-    Three Offshore discoveries viz. KG-08, KG-15, KG-17 in NELP block KG-OSN-2001/3 (recently acquired by ONGC) in KG Offshore have also been monetized.

-    Other discoveries are under various stages of exploration / assessment / appraisal / development for monetization. Reserve accretion and Reserve Replacement Ratio (RRR)

Accretion of In-Place hydrocarbons and Ultimate Reserves by the Company in its operated areas and in Non-operated (JV Share) during 2017-18 along with position (as on April 01, 2018) of In-Place hydrocarbons and Ultimate reserves established is as below:

In-Place Hydrocarbon Volumes and Ultimate Reserves of Company operated and JV (Domestic) Fields

Accretion During the year 2017-18					Position as on 01.04.2018
Reserve Type	Â	Domestic (Operated)	JV-Domestic (ONGC Share)	Total	Domestic (Operated)	JV-Domestic (ONGC Share)	Total
In-Place Hydrocarbon	3P	185.84	59.65	245.49	8840.30	1005.03	9845.33
MMt (O+OEG)	2P	163.78	59.65	223.43	7659.86	925.12	8584.98
Ultimate Reserves	3P	57.61	1.02	58.63	3094.17	107.04	3201.21
MMt (O+OEG)	2P	67.83	1.02	68.85	2827.98	106.49	2934.47
Reserve Replacement Ratio (RRR) on 2P basis during the year has been 1.48.

The following table gives the details of Ultimate Reserve Accretion (2P - Proved and Probable) for the last five years in domestic basins as well as from the overseas assets:

Ultimate Reserves(2P) Accretion (O+OEG)
Year	Domestic Asset	ONGC Share in domestic JVs	Total Domestic (1+2)	ONGC Videsh Share in Foreign Assets	Total ONGC Group (3+4)
Â	(1)	(2)	(3)	(4)	(5)
2013-14	56.26	4.29	60.55	213.24	273.79
2014-15	61.06	-1.03	60.03	20.03	80.06
2015-16	65.58	0.80	66.38	-7.22	59.16
2016-17	64.32	0.22	64.54	120.28	184.82
2017-18	67.83	1.02	68.85	21.56	90.41

Oil and Gas production

On standalone basis, in FY'18 the Company's domestic crude oil production level registered at 22.31 MMt against 22.25 MMt in FY'17. Oil production from onshore assets increased by 1.7% while offshore registered a decline of 0.3%.

Increase in onshore oil production was mainly due to various initiatives and early monetization of discoveries in Ankleshwar, Cauvery (Madnam) and Rajahmundry (Keshnapalli West), etc. Onshore Crude Oil production has registered an increase of 4.1% in last 2 years since 2015-16.

This turnaround in production has been achieved through revival of production from old and matured fields, production from new fields including NELP blocks, increase in drilling of development wells, execution of more number of work-over & well stimulation jobs and induction of new technologies.

Natural gas production (from domestic operated fields) during FY'18 has been 6.3% higher than the previous year (23.48 BCM against 22.09 BCM during FY'17). The Company's onshore gas production increased by healthy 8.3% whereas offshore production increased by 5.7%. Onshore gas production increased with all assets recording incremental gas production; substantial gains were in Ankaleshwar, Assam, Rajahmundry and Karaikal.

Incremental gas production in offshore during 2017-18 was from Daman/C-26, Vasishta & S1 Development.

Your Company's share in oil and gas production from PSC JVs were 3.13 MMT and 1.13 BCM respectively.

Direct	Unit	Production Qty		Sales Qty		Value (Rs, in million)
		FY'18	FY'17	FY'18	FY'17	FY'18	FY'17
Crude Oil	(MMT)	25.43	25.53	23.67	23.86	603,899	548,036
Natural Gas	(BCM)	24.61	23.27	19.49	17.94	137,372	139,398
Liquified Petroleum Gas	000 MT	1,187	1,355	1,186	1,352	40,352	37,276
Naphtha	000 MT	1,176	1,101	1,180	1,087	38,084	30,455
Ethane-Propane	000 MT	356	421	356	420	7,502	8,557
Ethane	000 MT	264	137	264	135	7,050	5,354
Propane	000 MT	194	91	191	87	6,250	2,223
Butane	000 MT	103	31	103	30	3,423	1,131
Superior Kerosene Oil	000 MT	46	36	34	43	1,178	1,321
Others	Â	Â	Â	Â	Â	692	1,112
Sub Total	Â	Â	Â	Â	Â	845,802	774,863
Trading	Â	Â	Â	Â	Â	Â	Â
HSD	000 KL	Â	Â	-	0.43	-	20
Motor Spirit	000 KL	Â	Â	-	0.21	-	11
Sub Total	Â	Â	Â	Â	Â	-	31
Total	Â	Â	Â	Â	Â	845,802	774,894

Production from Overseas Assets by OVL:

During the year, total Oil and Gas production from overseas assets was 14.16 MMtoe of O+OEG (oil: 9.35 MMT; Gas 4.81 BCM) in comparison to 12.80 MMtoe during FY'17 an increase of 10.6% which was mainly due to incremental production from Vankorneft and Sakhalin-1 projects, Russia; BC-10 project, Brazil; additional production from acquisition of 4% stake in the Lower Zakum Concession project in UAE and from exploratory success in Block CPO-5, Colombia.

Oil and Gas production of ONGC Group, including PSC-JVs and from overseas assets for FY'18 was 64.21 MMtoe (against 61.62 MMtoe during FY'17) an increase of 4.2%.

Technology Induction/Up gradation

Your Company gives utmost importance for induction, up-gradation and application of technology in various areas of its operations to remain competitive. During the year the following technology were applied/ upgraded/ inducted:

-    Gas Chromatograph and Resistivity meter with the upgraded version have been installed at KDMIPE, Dehradun. Gas chromatograph will facilitate in exploration by carrying out studies pertaining to metabolites of microbial origin whereas Resistivity Meter will be helpful in determining the realistic formation evaluation of the reservoir.

-    Switching over to Techlog Petrophysical Analysis Tools.

-    Hardware Virtualization Technology has been inducted using Red Hat Enterprise Linux as well as VMware systems.

-    Lustre File System Technology has been adopted in the Seismic Processing domain for the first time.

-    Infiniband based Networking Technology has been inducted on the recently installed HPCC in the Seismic Processing domain for the first time.

-    Production enhancement through stimulation of tight carbonate reservoirs in wells of western offshore field (implemented by IOGPT), in total 14 wells.

-    Innovative techniques for Gas Production enhancement in low gas production wells of Assam/ Tripura/ Mehsana (implemented by IOGPT), in one well of Tripura (RO#8).

- Development of chemical formulation for water shut off in gas wells of ONGC fields and its field execution (executed by IRS, Ahmadabad), in 3 wells during 2017-18.

Exploration in different plays (a)    Basement Exploration:

Concerted efforts for Basement Exploration, a frontier exploration play, have been taken up by the Company as a major initiative. During the year, your Company was pursuing Basement exploration across most of the operational areas as a frontier exploration play and drilled 24 wells including 11 wells with primary objective as Basement. Encouraging results have been obtained in wells GK-28-11, N-24-4, N-24-5, HY-11X in Western Offshore, wells Padra-114, 116, 117, 119, 120 in Cambay basin, Khoraghat-42 and BJAB in A&AA basin. Wells BH-76 and SMH-1 drilled in Western Offshore Basin flowed oil from Basement.

Cauvery basin is coming up as an important area for Basement Play with encouraging results in Mattur West-I and Pundi-8. For the development of discoveries in Basement play, Field Development Plan (FDP) of Pandanallur field has been approved and FDP implementation will begin in FY'19.

(b)    Exploration in HP-HT and Tight Reservoir:

The Company has prioritized HP-HT/ Tight/ Deeper plays in KG, Cauvery, Western Offshore Basin and Assam and Arakan Fold belt. These plays are deep, difficult to drill, test and produce from. During the year 2017-18, onland well PD-3 in Periyakudi field, Cauvery Basin became the first HP-HT well to be put on production. Another well BTS-3 in KG onland Basin has been successfully drilled and tested for gas in commercial quantities. The development drilling will be taken up in 2018-19. In addition, the Company after acquiring the operatorship of NELP block KG-ONN-2003/1 has submitted the FDP of two discoveries made in the block. Further, the Company acquired 80% stake and operatorship from Gujarat State Petroleum Corporation Limited (GSPCL) in the block KG-OSN-2001/3. The field is already on production and FDP is under preparation for six more monetized discoveries in the Block.

Unconventional and Alternate sources of energy

Your Company is well focused on exploration and development of unconventional like - Shale (CBM), High Pressure/ High Temperature (HP/HT), Fractured

Basement plays, etc. and alternate sources of energy. Structured actions have been initiated to increase the share of unconventional/ alternate energy in the production portfolio.

(a)    Shale Gas/ Oil Exploration:

The Company has firmed up a programme to explore for shale gas/ oil in 50 Nominated ML blocks (28 in Cambay, 10 in KG, 9 in Cauvery and 3 in A&AA basins).

23 Assessment wells have been drilled so far and prospects have been established in Cambay and KG basin. Drilling of more wells (both exclusive and dual objective) are planned in North Cambay and KG Basins in future, for better understanding and assessment. The areas planned to be covered include Nawagam, Kalol, Linch in north Cambay Basin; Mandapeta and Mahadevapatnam etc. in Krishna Godavari Basin.

(b)    Coal Bed Methane (CBM):

Your Company is operating in four CBM Blocks i.e. Jharia, Bokaro and North Karanpura in Jharkhand and Raniganj in West Bengal. FDP for Bokaro and North Karanpura Blocks have been approved. Details regarding various activities undertaken in these blocks are as under:

1.    Bokaro Block: Drilling of 141 development wells has been considered in the FDP of Bokaro Block. Five wells have been drilled successfully and drilling of sixth well is in progress. 10 more well sites are earmarked and total 30 wells are planned to be drilled during 2018-19.

2.    North Karanpura Block: Total 68 development wells have been considered in the FDP of North Karanpura Block. 30 wells are planned to be drilled during 2018-19.

3.    Jharia Block: After receiving permission from DGMS, operations have been resumed Since March'18 by hydro-fracturing and testing of already drilled well JH#14. Around 10,000 - 15,000 SCMD of incidental Gas is being sold and the sales is planned to be ramped up with production in this Block. Revised Feasibility Report has been prepared after discounting 12 wells in line with co-development plan which is under vetting by independent Financial Institution and consent ofJV partner Coal India Limited is being obtained on the Feasibility report. Agreement has been entered into with gas off-taker at a price of 6.12 USD/MMBTU on GCV basis for 10,000 SCMD.

4. Raniganj Block: Techno-economic analysis for monetization of the block has been carried out and efforts are underway for economizing production cost.

(c)    Gas Hydrates

Your Company has been an active participant in gas hydrates exploratory research in the country under National Gas Hydrate Program (NGHP) of the Government of India (GoI) since 1997. The results of NGHP-02 are very encouraging and two gas hydrate reservoirs have been discovered in KG deep offshore. For a deep focus, your Company has established a Gas Hydrate Research & Technology Centre (GHRTC) at Panvel, Maharashtra for production and exploitation of gas hydrates. Further, the Company is looking forward to NGHP Expedition-03 to test the technology and assess the production technology for Gas Hydrates exploitation in Indian offshore.

(d)    Alternate Sources of Energy

-    Hazira Plant has installed 10 MWp Solar Power Plant in line with its commitment towards generation of Renewable Energy and is in operation. Dahej Plant has also taken initiatives for implementing 500 KW rooftop solar power project.

-    Earlier, as a step towards green energy by harnessing natural resources with latest technologies, Hazira Plant has commissioned a 40 KWp Solar Power Plant in Kendriya Vidyalaya in ONGC township and Uran Plant had installed a 125 KWp Solar Power Plant at roof top of reservoir.

Oil & Gas Projects (a) Project Competed during FY'18

During the year 2017-18, following 04 major projects (2 development and 2 Infrastructure) have been completed:

Sl. No	Project Name	Completion date	Approved cost (Rs, in million)	Envisaged Oil Gain (MMT)	Envisaged Gas Gain (BCM)
1	Construction of 3 ETP at Rajahmundry	28.06.2017	1,480.00	-	-
2	Sonamura GGS and Pipeline Project, Tripura	31.01.2018	2,153.80	-	-
3	Development ofWestern Periphery of MHS	23.02.2018	7409.90	0.933	0.149
4	Integrated Development of Vasistha & S-1 Fields	31.03.2018	57,255.00	-	14.611
Â	Total	Â	68,298.70	0.933	14.76

(b)    Fast track monetization of Marginal Fields

Your Company is developing new and marginal fields on fast track to augment the oil and gas production. It is pertinent to mention that many marginal fields in western offshore which were not techno-economically viable for exploitation earlier on standalone basis are now being developed with cluster concept.

Some of the marginal fields were put on production in the last few years include NBP (D-1) with its additional development, Vasai West, Vasai East with its additional development, North Tapti, BHE, SB-14, WO-16, Cluster-7 fields, B-46 Cluster fields, C-24 & C-26 Cluster fields, B-22 Cluster fields and B-193 Cluster fields etc.

Production from Integrated Development of Mukta, Bassein and Panna Formations in Bassein field and Daman Development projects has commenced and would contribute further with drilling of more wells under these projects. Also, production has commenced from B127 cluster from May 2018.

Further, development of NW B-173A field, 4^th Phase Development of NBP field, Development of R-Series fields including revival of R-12 (Ratna), Development of B-147 field & Development of BSE-11 Block are under various stages of implementation.

(c)    Development of fields in Eastern Offshore

Major thrust is being given to develop discoveries made in the Krishna Godavari basin which is a promising basin with various discoveries like G1/GS-15, Vasishtha, S1, GS-29 and KG-DWN-98/2, etc.

Your Company has been vigorously pursuing to develop these fields as early as possible. The production from shallow water field GS-15 and deep water field G-1 has already commenced. Project "Integrated Development of Vasistha & S-1 Fields” has been completed in March 2018 and is aimed to contribute 14.61 B CM of gas by year 2026-27. Further, to boost up oil and gas production from Eastern Offshore, one mega project for development of cluster 2 fields of NELP Block KG-DWN-98/2” is under implementation and envisages production of25.87 MMT of oil and 45.49 BCM of gas by 2034-35.

Development of other discoveries in KG offshore such as KG-DWN-98/2 (Cluster-I and III fields), GS-49 and GS-29, G-4-6 fields, shallow water NELP block KG-OSN-2004/1, etc. are under various stages of appraisal/ approval for development.

1. Financial Highlights:

Your Company has earned Profit After Tax (PAT) of Rs,199,453 million, up by 11.4% over FY'17 (Rs,179,000 million) and registered Revenue from Operations of Rs,850,041 million, up by 9.10% over FY'17 (Rs,779,078 million).

Highlights - Standalone Financial Statements

-    Revenue from Operations    :    Rs,850,041 million

-    Profit After Tax (PAT)    :    Rs,199,453 million

-    Contribution to Exchequer    :    Rs,376,088 million

-    Return on Capital Employed    :    27.04%

-    Debt-Equity Ratio    :    0.13:1

-    Earnings/ Share    :    Rs,15.54

-    Book Value/ Share    :    Rs,151

Particulars	Rs,in million
	2017-18	2016-17
Revenue from operations	850,041	779,078
Other Income	78,836	76,763
Total Revenue	928,877	855,841
Profit Before Interest Depreciation & Tax (PBIDT)	448,712	386,267
Profit Before Tax (PBT)	288,925	252,155
Profit After Tax (PAT)	199,453	179,000
Transfer to General Reserves	110,290	64,466

2. Dividend

Your Company has paid interim dividend of Rs,5.25 per share of Rs,5 each (105%) in two times (Rs,3.00 and Rs,2.25).

The Board of Directors has recommended a final dividend of Rs,1.35 per share (27%), making the aggregate dividend at Rs,6.60 per share (132%) for FYRs,18. The total dividend for the year aggregates to Rs,84,699 million, besides Rs,17,277 million applicable Dividend Distribution Tax (DDT) which is 51.13 % of PAT (inclusive of DDT).

The Dividend Distribution policy as formulated by the Company, may be accessed at the web link https://www.ongcindia.com/wps/wcm/connect/en/investors/ policies

3.    Management Discussion and Analysis Report

As per the terms of regulations 34(2) (e) of the SEBI Listing Regulations, the Management Discussion and Analysis Report (MDAR) as appended, forms part of this Annual Report.

4.    Financial Accounting

The Financial Statements have been prepared in compliance with Indian Accounting Standards (Ind-AS) issued by the Institute of Chartered Accountants of India (ICAI) effective from April 01, 2016 and applicable provisions of the Companies Act, 2013.

5.    Loans, Guarantees or Investments

Your Company is engaged in Exploration & Production (E&P) business which is covered under the exemption provided under Section 186(11) of the Companies Act,

2013. Accordingly, the details of loans given, investment made or guarantee or security given by the Company to subsidiaries and associates is not reported.

6.    Detail relating to deposits covered under Chapter V of the Act:

Particulars	Amount (in Rs,)
Deposits accepted during the years	Nil
Deposits remaining unpaid or unclaimed as at the end of the year	Nil
Default in repayment of deposit or payment of interest thereon during the year	Nil

7. Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section 188(1) of the Companies Act, 2013, is provided in specified Form AOC-2, and placed at Annexure-A.

8. Subsidiaries

Your Company has acquired 51.11% shares held by the President of India (778,845,375 equity shares of face value Rs,10 each) in Hindustan Petroleum Corporation Limited (HPCL) on January 31, 2018, for a total cash consideration of Rs,369,150 million. Upon the acquisition, HPCL has become a subsidiary of your Company.

Upon the acquisition of HPCL, Petronet MHB Limited has been reclassified from joint venture company to a subsidiary company as total shareholding of your Company increased to 65.44% i.e. 32.72% shares each by the Company and HPCL.

Further, the subsidiaries of HPCL, viz. Prize Petroleum Company Limited, HPCL Bio Fuel Limited, HPCL Rajasthan Refinery Limited and HPCL Middle East FZCO have become indirect subsidiaries of your Company.

The details of Subsidiaries are as under:

(I) ONGC Videsh Limited (OVL)

OVL, the wholly-owned subsidiary of your Company for E&P activities outside India, has participation in 41 oil and gas projects in 20 Countries, viz. Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Israel (1 project), Kazakhstan (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6 projects), Namibia (1 project), New Zealand (1 Project), Russia (3 projects), South Sudan (2 projects), Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects) and Vietnam (2 projects). Out of 41 projects, OVL is Operator in

14 projects; Joint Operator in 7 projects and remaining 20 are non-operated projects. During the year, OVL set its foot-prints in Israel, Namibia and UAE. OVL adopts a balanced portfolio approach and has a combination of 15 producing, 4 discovered/ under development, 18 exploration projects and 4 pipeline projects.

During FY'18, OVL has made the consolidated Profit After Tax of Rs,9,815 million attributable to owners as compared to the consolidated Profit After Tax of Rs,7,573 million attributable to owners during FY'17. Increase in profit is mainly on account of higher production, higher crude oil prices and lower impairment provisions.

a. Significant Acquisitions and Alliances of OVL during FY'18:

- ONGC Videsh Vankorneft Pte. Ltd (OVVL), a wholly-owned indirect subsidiary of OVL, has completed acquisition of 30% Participating Interest (PI) in Namibia Petroleum Exploration License 0037 for Blocks 2112A, 2012B and 2113B on October 3, 2017 from Tullow Namibia Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc. Tullow with its remaining 35% PI shall continue to be the operator of the License.

-    OVL led Indian Consortium including Indian Oil Corporation Limited (IOCL) and Bharat Petro Resources Limited (BPRL) acquired 10% PI in Lower Zakum Concession, Offshore Abu Dhabi. The production from the field was around 419,000 bopd and the share of production to Indian Consortium was around 42,000 bopd and OVL share was around 16,800 bopd.

-    An Exploration Block with License 412/"32” in Israel has been awarded by Petroleum Commissioner to Indian Consortium on March 27, 2018 with exploration duration of 3 years. OVL is the operator and each Partner of the Indian Consortium, i.e. OVL, BPRL, IOCL and OIL hold 25% Participating Interest (PI) each in the License.

b. During FY'18, OVL has signed the following

Memorandum of Understanding (MoUs):

i.    MoU with TPAO, Turkey: OVL has signed an MoU with TPAO on July 12, 2017 to evaluate Oil and Gas opportunities in upstream as well as any other mutually identified and agreed area.

ii.    MOU with PEMEX, Mexico: Earlier a MoU was signed between PEMEX Exploration and Production and OVL on September 25, 2014. Term of this MoU has been extended till September 24, 2019, by an amendment to the original MoU. The MoU aims at cooperation in the upstream sector in Mexico, India and third countries, and Cooperation in fields of technology, human resource, research and development.

iii.    MoU with GeoPark, Latin America:

OVL and GeoPark Ltd., a Latin America focused E&P Company, entered into an MoU on 16^th February, 2018 for Cooperation in upstream sector in Latin America. The MoU envisages a long term strategic partnership between the companies to jointly acquire, invest in, and create value from upstream oil and gas projects with the objective of building a large-scale, economically-profitable and risk-balanced portfolio of assets and operations across Latin America.

c. During FY'18, the following significant events occurred in the area of Exploration & Operations:

i.    CPO-5, Colombia: - The well Mariposa-1 was drilled to a total depth of 11,556 feet (MD) and log analysis indicated the presence of approximately 121 feet of oil saturated net pay in the Lower Sands Unit. The well is currently under testing and activated on self. The discovery has opened up new play in CPO-5 block and more wells are likely to be drilled for the play.

ii.    Sakhalin-1, Russia: - 30 years extension to the Production Sharing Agreement (PSA) of Sakhalin-1 block has been granted from 2021 to 2051. Sakhalin-1 completed World's Longest Extended Reach Drilling (ERD) well #O5RD with measured depth of 15,000 metre on June 30, 2017.

iii.    ACG, Azerbaijan: - Consortium partners of the giant ACG Fields in Azerbaijan have entered into an agreement with Azerbaijan Government and State Oil Company of the Azerbaijan Republic (SOCAR) for extension of the Production Sharing Agreement (PSA) extension for Azeri-Chirag-Deep water portion of Guneshli (ACG) oil fields until December 31, 2049.

iv.    Rovuma Area-1 Project, Mozambique: -

Government of Mozambique has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. The plan outlines the integrated development of the Golfinho-Atum field through an initial two-train onshore liquefaction plant with a total processing capacity of 12.88 MMTPA.

Direct Subsidiaries and Joint Ventures of OVL:

1. ONGC Nile Ganga B.V. (ONGBV): ONGBV is engaged in E&P activities directly or through its subsidiaries/ JVs in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25% PI in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.282 MMT during FY'18. ONGBV also holds 25% PI in Greater Pioneer Operating Company (GPOC), South

Sudan. Due to adverse geo-political conditions, ONGC Videsh could not produce in GPOC, South Sudan during FY'18.

ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due to force majeure conditions in Syria, there was no production in AFPC project during FY'18. ONGBV holds 40% PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of O+OEG production of about 0.389 MMtoe during FY'18. ONGBV holds 27% PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. with its share of oil and oil equivalent gas production of about 0.704 MMtoe during FY'18. It also holds 25% PI in Block BM-SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltda. ONGBV also holds 8.347% PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for onshore Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.

San Cristobal Project: Consequent to the signing of Agreements on Pending Payments and Financing of San Cristobal project for remediation plan between PdVSA and ONGC Nile Ganga (San Cristobal) BV on November 04, 2016, PdVSA has paid USD 88.42 million till March 2018 to liquidate partly the outstanding dividend due from the JV Petrolera IndoVenezolana S.A.(PIVSA).

2.    ONGC Narmada Limited (ONL): ONL has been retained for acquisition of future E&P projects in Nigeria.

3.    ONGC Amazon Alaknanda Limited (OAAL):

OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY' 18, ONGC Videsh's share of oil and oil equivalent gas production in MECL was about 0.487 MMtoe.

4.    Imperial Energy Limited (IEL): IEL, a wholly-owned subsidiary of OVL incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia, Russia. During FY'18, Imperial Energy's oil and oil equivalent gas production was about 0.294 MMtoe.

5.    Carabobo One AB: Carabobo One AB, is incorporated in Sweden, indirectly holds 11% PI in Carabobo-1 Project, Venezuela. During FY'18, ONGC Videsh's share of oil and oil equivalent gas production was about 0.169 MMtoe.

6.    ONGC BTC Limited: ONGC BTC Limited holds 2.36% interest in the Baku-TbilisiCeyhan Pipeline ("BTC”) which owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carry crude from the ACG fields from Azerbaijan to the Mediterranean Sea.

7.    Beas Rovuma Energy Mozambique Limited (BREML): BREML was incorporated in British Virgin Islands (BVI) and has been migrated by continuation to Mauritius w.e.f. January 23, 2018. OVL holds 60% shares in BREML and the balance 40% are held by OIL, BREML holds 10% PI in Rovuma Area 1, Mozambique.

8.    ONGC Videsh Atlantic Inc. (OVAI): OVL

has setup a Geological and Geophysical (G&G) Centre at Houston, USA through its wholly owned subsidiary OVAI. The Centre caters to requirement of G&G studies for potential new acquisitions of ONGC Videsh including G&G studies of its existing portfolio of projects.

9.    ONGC Videsh Rovuma Limited (OVRL): OVRL a wholly owned subsidiary of OVL was incorporated in Mauritius for re-structuring of10% PI in Rovuma Area 1, Mozambique.

10.    ONGC Videsh Singapore Pte. Ltd. (OVSL):

OVSL was incorporated in Singapore for acquisition of shares in Vankorneft, Russia, through its subsidiary ONGC Videsh Vankorneft Pte. Limited (OVVL). OVVL holds 26% shares in Vankorneft, Russia and its share of production during FY'18 was 6.191 MMtoe.

11.    Indus East Mediterranean Exploration Ltd. (IEMEL): IEMEL, a wholly owned subsidiary of OVL was incorporated in Israel on February 27, 2018 and engaged in E&P activities related to Block-32, Offshore Israel.

12.    ONGC Mittal Energy Limited (OMEL): OVL along with Mittal Investments Sarl (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS together hold 98% equity shares of OMEL in the ratio of 49.98:48.02 remaining 2% shares are held by SBI Capital Markets Ltd.

13.    SUDD Petroleum Operating Company (SPOC): SPOC, a Joint Operating Company incorporated in South Sudan to operate in Block 5A, South Sudan in which OVL, Petronas & Nilepet of South Sudan holds 24.125%, 67.875%& 8% PI respectively. Block 5A is located in the prolific Muglad basin and spread over an area of about 20,917 Square Km.

14.    Mozambique LNG1 Company Pte. Ltd.:

Mozambique LNG1 Company Pte. Ltd. has been incorporated at Singapore by Rovuma Area-1 Mozambique consortium to oversee marketing and shipping activities of LNG from first 2 trains of Golfinho-Atum field. OVL holds 16% interest in the Company which is in proportion to its interest in Rovuma Area-1 Project, Mozambique.

15.    Falcon Oil & Gas B.V. (FOGBV): FOGBV was incorporated in Netherlands on February 06, 2018. OVLs wholly owned subsidiary ONGBV holds 40% shares in FOGBV and IOC and BPRL holds 30% shares each though their respective subsidiaries. The transaction documents were executed with ADNOC, Supreme Petroleum Council (SPC) and the Operating Company (OPCO) on February 10, 2018 at Abu Dhabi for acquiring 10% PI in Lower Zakum Concession for a period of 40 years with effect from March 09, 2018.

(II) Mangalore Refinery and Petrochemicals Limited (MRPL)

MRPL was incorporated on March 07, 1988. Your Company continues to hold 71.63 % equity stake in MRPL, a Schedule ‘A' Mini Ratna and listed entity, which is a single location 15 MMTPA Refinery on the West coast. Further, HPCL, another subsidiary of your Company, also continues to hold 16.96% in MRPL.

Performance Highlights FY’ 18

MRPL achieved the highest-ever thru ‘put of 16.31 MMT in FY'18 against 16.27 MMT in FY'17 and recorded the Revenue from Operations of '630,836 million and Profit After Tax of '22,241 million. The Board of MRPL has recommended a dividend of '3/- per share (30% of the paid up capital) for the approval of shareholders in the general meeting.

Marketing & Retail Operations

MRPL continues to maintain major share of the direct sales segment of petroleum products market in Karnataka and adjoining states and maintained leadership position in the marketing zone for direct sales of products such as Bitumen, Fuel Oil, Diesel, Sulphur, Petcoke, Xylol (Xylenes) etc. MRPL has commenced diesel supplies directly to new Railway Consumer Depots during the period and has also expanded its retail network. The total domestic sales volume of all products during the FY'18 has been 1786 TMT.

MRPL continues to enhance its market share for Polypropylene with introduction of new and niche grades and also has made in-roads in new geographical areas.

Future Projects

MRPL has taken up the enhancement of the Refinery capacity to 18/25 MMTPA with low cost revamping. The Government of Karnataka has allotted 1050 acres of land for this purpose. Necessary steps are being taken to ensure compliance with BS- VI fuel quality standards by the year 2020.

ONGC Mangalore Petrochemicals Limited (OMPL)

OMPL has been promoted by the Company for setting up Aromatic Complex with an annual capacity 914 KTPA of Para-xylene and 283 KTPA of Benzene in Mangalore Special Economic Zone as value chain integration project. The project, established at the total outlay of '69,110 million, commenced commercial operations on October 01, 2014. OMPL is consistently increasing its capacity utilization with average capacity utilization of around 88% in FY'18.

OMPL is a subsidiary of your Company as it holds 48.998% shares directly and remaining 51.002% shares are held by MRPL.

(III) Hindustan Petroleum Corporation Limited (HPCL)

Your Company acquired 51.11% equity shares of HPCL from GoI on January 31, 2018 and thereby HPCL became a subsidiary.

HPCL owns and operates 2 major refineries producing a wide variety of petroleum fuels and specialties, one in Mumbai (West Coast) of 7.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the other in Visakhapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards, with a capacity of 428 TMT.

This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. HPCL in collaboration with Mittal Energy Investments Pte. Ltd. is operating a 9 MMTPA capacity Refinery at Bathinda with 49% equity and also holds an equity of 16.96% in the MRPL having refining capacity of15 MMTPA.

HPCL has the second largest share of product pipelines in India with a pipeline network of more than 3370 kms for transportation of petroleum products and a vast marketing network consisting of 21 Zonal offices in major cities and 128 Regional Offices facilitated by a Supply and Distribution infrastructure comprising Terminals, Pipeline networks, Aviation Service Stations, LPG Bottling Plants, Inland Relay Depots & Retail Outlets, Lube and LPG Distributorships.

HPCL has recorded Sales Revenue of '2,432,267 million and the Profit After Tax is '63,571 million for the year 2017-18.

Subsidiaries of HPCL i)    Prize Petroleum Company Limited (PPCL)

PPCL is a wholly owned subsidiary of HPCL. PPCL is the upstream arm of HPCL and is in the business of Exploration and Production (E&P) of Hydrocarbons as well as providing services for management of E&P blocks.

During 2017-18, PPCL achieved total production of 33,752 barrels of crude oil from domestic oil field at Hirapur (Gujarat). PPCL has a wholly owned subsidiary namely Prize Petroleum International Pte Ltd. (PPIPL), incorporated in Singapore. PPIPL holds 11.25% PI and 9.75% PI in two E&P blocks - T/L1 and T/18P respectively in Australia. PPIPL has achieved its share of production of 459,269 BOE (Barrels of Oil Equivalent) from Yolla producing field (T/L1). During 2017-18, PPCL has achieved total revenue of '1,063 million on consolidated basis as compared to '865 million achieved during previous year.

ii)    HPCL Bio Fuel Limited

HPCL Biofuels Ltd (HBL) is a wholly owned subsidiary of HPCL as a backward integration initiative to foray into manufacturing of ethanol for blending in petrol. HBL presently has two integrated Sugar-Ethanol-Cogeneration plants at Sugauli and Lauriya in the state of Bihar. During 2017-18, HBL has recorded total revenue of '1,365 million and cane crushing of 699 TMT with average sugar recovery of 9.04%. HBL also achieved sugar production of63,870 MT, Ethanol production of7,025 KL and power production of 79,085 MWh during 2017-18.

iii) HPCL Rajasthan Refinery Limited (HRRL)

HRRL is a joint venture of the HPCL and the Government of Rajasthan with equity participation of 74% and 26% respectively. HRRL is setting up a 9 MMTPA capacity Greenfield refinery cum petrochemical complex in the state of Rajasthan. HPCL and the Government of Rajasthan entered into a revised Memorandum of Understanding on April 18, 2017 for the construction of the said Refinery with revised parameters. The revised Joint Venture Agreement was signed on August 17, 2017. The work commencement ceremony of the 9 MMTPA Rajasthan Refinery was carried out by the Honourable Prime Minister of India on January 16, 2018. The preproject activities for the project are in advanced stage. The cost of project is estimated to be '431,290 million.

(iv) HPCL Middle East FZCO

HPCL Middle East FZCO, a 100% Subsidiary of HPCL was incorporated on February 11, 2018 as a free zone company under Dubai Airport Free Zone and Establishment Card was issued on March 22, 2018 for the company. HPCL Middle East FZCO was established for trading of lubricants and greases, petrochemicals and refined petroleum products. The subsidiary will serve the select markets of Middle East and Africa.

(IV) Petronet MHB Limited (PMHBL)

Upon acquisition of controlling interest in the capital of HPCL on January 31, 2018, PMHBL has become a subsidiary of your Company. Both the Company and HPCL hold 65.44% (each 32.72%) in the capital of PMHBL. Balance 34.56 % of equity being held by banks/ Financial Institutions.

PMHBL owns and operates a multi-product pipeline to transport MRPLs products to the hinterland of Karnataka. In FY'18 PMHBL pipeline has achieved a throughput of 3.5 MMT against total throughput of 3.43 MMT last year and declaring a maiden interim dividend of 9% in 2017-18. PMHBL has recorded total Revenue of '1,711 million as compared to '1,702 million in the previous year. Further, the Profit After Tax of PMHBL was '835 million in financial year 2017-18 as compared to '810 million in the previous financial year.

9.    Annual Report of Subsidiaries and Consolidated Financial Statement

The Consolidated Financial Statements for the year ended 31^st March, 2018 of your Company has been prepared in accordance with Section 134 of the Companies Act, 2013, Ind AS 103 "Business Combinations” as per Pooling of Interest Method, Ind AS 110 “Consolidated Financial Statements” and Ind AS 28 “Investments in Associates and Joint Ventures”. The audited Consolidated Financial Statements for the year ended 31^st March, 2018 form part of this Annual Report.

Full Annual Reports of subsidiaries of your Company will be made available to any shareholder upon request, which is also available on Company's website. Further, Annual Reports of OVL, MRPL, HPCL and PMHBL are also available on websites www.ongcvidesh.com; www.mrpl.co.in;www.hindustanpetroleum.com and www.petronetmhbl.com respectively.

10.    Associates including Joint Ventures

a)    Pawan Hans Limited (PHL)

PHL, an Associates of the Company (49%) was formed with the Government. of India (51%), acting through Ministry of Civil Aviation inter -alia for catering to the logistic requirements of oil fields located at remote/ far-flung areas. PHL is a Mini Ratna - I Category PSU and having 43 helicopters including medi- chopper.

The Government of India is taking action for identifying a strategic acquirer for its entire holding and hence, your Company has also decided to exit PHL along with the Government.

b)    Petronet LNG Limited (PLL)

PLL, a JV of the Company was incorporated on April 02, 1998 with 12.5% equity holding along with identical stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL, is a listed Company. PLL, one of the fastest growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and degasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 15 MMTPA, the Kochi terminal has a capacity of 5 MMTPA.

Revenue from Operations of PLL during FY'18 was Rs,305,986 million and Profit After Tax was Rs,20,778 million.

c)    Dahej SEZ Limited (DSL)

DSL a 50:50 JV of the Company along with Gujarat Industrial Development Corporation was formed for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as a value-chain integration project, which serve as feeder unit to ONGC Petro- additions Limited.

Revenue from Operations of DSL during FY'18 was '541 million, Profit After Tax was '369 million.

d)    ONGC Tripura Power Company Limited (OTPC)

OTPC was incorporated on September 27, 2004 as a joint venture of your Company (50%) along with the Government. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with India Infrastructure Fund - II acting through IDFC alternatives Limited.

OTPC has set up a 726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura at a project cost of '40,470 million. The basic objective of the project is to monetize idle gas assets of the Company in landlocked Tripura State and to boost exploratory efforts in the region.

Power evacuation for both the units is done through 663 KM long 400 KV double circuit transmission network by North-East Transmission Company Limited (NETC), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states.

OTPC's both power units of 363.3 MW each are fully operational in two phases.

Revenue from Operations of OTPC during FY'18 was Rs,12,516 million and Profit After Tax was Rs,1,251 million.

e)    Mangalore SEZ Limited (MSEZL)

MSEZ, a Special Economic Zone promoted by the Company with an equity stake of 26% along with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%). MSEZ, was set up as zone for development of necessary infrastructure to facilitate and locate industrial establishment including OMPL. MSEZ is operational since April 01, 2015. With investments exceeding USD 2 billion and exports of over USD 400 million worth of goods from its units, MSEZ has emerged as one of the most vibrant operational multi-product SEZs in India.

f)    ONGC Petro additions Limited (OPaL)

OPaL, a JV formed by the Company (26%) along with GAIL (8.85%) and with a nominal investment by GSPC was incorporated on November 15, 2006. The balance equity is to be tied up with Strategic Partners/ FIs or allotted through IPO. Presently the equity gap is bridged through quasi equity instruments - Compulsorily Convertible Debentures and Short Term Loan.

OPaL is a mega petrochemical project established in Dahej SEZ for utilizing in-house production of C2-C3 and Naphtha from the nearby unit of the Company. The project cost of OPaL at completion was Rs,308,260 million.

OPaL has started its production in 2016-17 and has been ramping up its production in phases.

OPaL has established itself in domestic/ export market with sale of prime grade products.

g)    ONGC TERI Biotech Limited (OTBL)

OTBL, a JV formed by the Company (49.98%) along with The Energy Research Institute (48.02%) and the balance 2% shares are held by individuals.

OTBL has developed various Biotechnical Solutions to oil and gas Industries through collaborative researches involving the Company and TERI. These technology include Bioremediation, Paraffin Degrading Bacteria (PDB), Wax Deposition Prevention (WDP) and Microbial Enhanced Oil Recovery (MeOR) which are being provided to oil and Gas industries both in India and abroad.

Revenue from Operations of OTBL during FY'18 was Rs,178 million and Profit After Tax was Rs,81 million.

11. Other Business Initiatives, Important MoUs/ Agreements

a. Re-assessment of Hydrocarbon Resources, KDMIPE, Dehradun

Your Company has completed the prestigious project on “Re-assessment of hydrocarbon resources of sedimentary basins and deep water areas of India” in association with Oil India Ltd. (OIL) and DGH before scheduled time. The feasibility reports were reviewed by International Experts, representatives of DGH and OIL and were submitted to DGH on January 31, 2017. The prognosticated hydrocarbon resources estimation of the country for 26 sedimentary basins and offshore areas has shown a significant increase on this reassessment.

b.    Gas Supply at Ceiling price from Deep water fields: Under the second tender for S1-Vashishta gas, for the first time, 45,000 SCMD of deep water gas to one consumer was tied up at ceiling Price.

c.    Modified Evacuation Plan for KG DWN 98/2 Gas: A changed methodology has been finalized to bring part of the upcoming KG DWN 98/2 gas to another landfall point i.e. Mallawaram in view of connectivity to EWPL (East west pipeline) to enable this gas to reach PAN India customers and also utilization of Onshore Gas Terminal at Mallawaram, acquired from GSPC.

d.    FIFO Agreement with GSPC: Gas Sale & Purchase Agreement (GSPA) was executed on June 01, 2017 between GSPC (as the gas producer) and GSPC (as the buyer) in line with the Farm in Farm out agreement (FIFO) with respect to contract area identified as block KG-OSN-2001/3. Subsequently, the GSA was novated to the Company by signing of the Novation Agreement on August 04, 2017.

e.    HFHSD & LSHS

At Hazira, a NGL fractionation unit has been commissioned which will produce new products such as HFHSD (High Flash High Speed Diesel) and LSHS (Low Sulphur Heavy Stock). At Tatipaka mini refinery also HFHSD production has started and sample has been tested at HPCL, Vizag.

Sale arrangement for HFHSD ex-Hazira and Tatipaka and LSHS ex-Hazira has been finalized with HPCL. HPCL was awarded LSHS ex -Tatipaka supply extension on September 05, 2017.

f.    C2-C3

Negotiations on C2-C3 pricing mechanism for product supply from Uran with RIL resulted in product price improvement. New pricing methodology for C2-C3 ex - Uran supply to RIL was signed on November 28, 2017, effective from April 01, 2017 till the validity of contract i.e. March 31, 2020.

g.    Joint Industry Project (JIP): A contract had been entered between the Company and NGI (Norwegian Geotechnical Institute) Norway on August 07, 2015 for participation in the Joint Industry Proj ect (JIP) for “Reliability ofAPI & CPT-based axial pile capacity design methods”. Five Internationally reputed companies (Petrobras, Statoil, Dong Energy, DNV GL and Lundin) participated along with the Company. The project has been successfully completed on December 31, 2017.

This Project will benefit in optimization of offshore pile foundation and life extension of old platforms.

h.    ONGC-PAN IIT Collaborative Research Program:

Your Company has entered into a Memorandum of Collaboration (MoC) with Pan IIT in January 19, 2015 to work towards a collective R&D Programme for developing indigenous technologies to enhance exploration and exploitation of hydrocarbons and alternate sources of energy. Pan IIT is a consortium of seven premier Indian Institutes of Technology namely, Kharagpur, Kanpur, Madras, Mumbai, Delhi, Guwahati and Roorkee. This is a long-term initiative for sustained research, development and capacity building. Under this program, R&D projects (32 Nos.) have been taken up in different phases (Phase-I: 15 projects, Phase-II: 12 projects, Phase-III: 5 projects) distributed with different timelines up to 2020.

i.    An agreement was signed with M/s Belgrave Oil and Gas Corporation, Calgary, Canada for ‘Cyclic Steam Stimulation Pilot in Lanwa field' on June 25, 2015 and was valid up to December 31, 2017. The Contract has been further extended up to December, 2019.

j. Your Company signed MoU with IFP Energies nouvelles, France on December 20, 2017 for Long term collaborative working relationship in areas of Geoscience & Reservoir Management and is valid for 5 years.

k. Your Company has signed an agreement with IIT (ISM), Dhanbad on December 03, 2017 for execution of project entitled “Development of polymer nano-composite hydrogel systems for water control in oil/ gas wells completed in harsh environment”.

l. Your Company has signed a MoU on December 23, 2015 with Oil India Ltd (OIL) for providing consultancy and sharing technology for five years in the field of EOR and Water shut-off (WSO) jobs. The MoU is valid for five years for setting up of EOR lab, EOR projects, Heavy oil, Chemical Water shut off (WSO) jobs and Oil field water management etc. During the year 2016-17 and 2017-18, about 6

WSO Jobs were carried out and currently two jobs are lined up. As a follow-up, a new request to provide consultancy service for WSO Jobs in 15 wells of OIL has been received which is under finalization.

m. MOU with Mumbai Port Trust, Jawaharlal Nehru Port Trust and Participating Oil Companies

Your Company has an MoU with Mumbai Port Trust (MbPT), Jawaharlal Nehru Port Trust (JNPT) and Participating Oil Companies viz. Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, Reliance Industries Ltd., Chemical Terminal Trombay Ltd., Aegis Logistics Ltd. and Tata Power Company Ltd., whose oil is being handled at these ports for providing Tier-1 oil spill response services and facilities at MbPT and JNPT covering the Company's Uran Plant and Nhava Supply Base. The Participating Oil Companies are funding the Tier-1 oil spill response services and facilities, the contract for which has been awarded to Sadhav Shipping Ltd., Mumbai by MbPT for a period of five years, valid up to October 21, 2019 with Company's share of 41.5%. Under the MoU, MbPT is conducting quarterly oil spill response mock drill in the port area with the Participating Oil Companies.

n. MoU with CSIR-National Institute of Oceanography (NIO) covering areas like

-    Environmental monitoring;

-    Analysis and R&D studies of heavy metals concentration in environmental samples;

-    Bioremediation studies of waste generated during oil exploration and production activities;

-    Toxicological studies of the wastes;

-    Environmental tests of drilling fluids, drilling mud and drill cuttings;

-    Study of sediment characteristics;

-    EIA studies for offshore activities;

-    Impact prediction and modeling for oil spill, air pollution and water pollution for risk assessment studies in petroleum sector etc.

o. Agreement with Oil Spill Response Ltd. (OSRL), UK

Your Company has an agreement with Oil Spill Response Limited (OSRL), UK for combating major oil spill of Tier-3 level. OSRL has one of the world's largest technical resources for responding to oil spill. It operates as a non-profit cooperative of the major international oil and energy companies like Chevron, British Petroleum, STATOIL, British Gas International etc. Company is a participant member on OSRL since 1999.

As a part of service contract OSRL has to undertake preparedness review of Company's offshore and coastal facilities every year. In view of development activities, the Annual Preparedness Review was conducted at Eastern Offshore Asset (EOA) Kakinada on July 24, 2017.

p. Agreement with Reliance Industries Ltd., Cairn India Ltd., Gujarat State Petroleum Corporation and Oil India Ltd. at East Coast

Your Company has signed agreement with Reliance Industries Ltd., Cairn India Ltd., Gujarat State Petroleum Corporation and Oil India Ltd. on June 01, 2017 for pooling of resources and cooperation during oil spill incidents on East Coast. The agreement is valid for 5 years.

12. Information Technology

i)    Paperless Project under DISHA - Digitization, Integration and Standardization by Harnessing Automation

Your Company has taken giant step in digitization by rolling out Paperless Office system at Mumbai region on July 12, 2017 followed by Delhi on July 31, 2017. Subsequently, it has been rolled out in Western Region on September 25, 2017 by the Hon'ble Prime Minister Shri Narendra Modi. Presently, all the work-centres of the Company are on Paperless office system.

ii)    Project Management Office

In today's competitive world, the focus is on timely completion of Projects. Towards this objective, a Project Management software has been implemented. The tool has been configured and presently strategic Projects are being monitored. In due course, all Projects would also be monitored using this tool.

iii)    BWA for Onshore Rigs in Western Onshore

For Onshore Drillings, high bandwidth connectivity based on Wi-Max technology has been extended.

This would enable them to have Office like network experience at the rigs.

iv)    Wi-Fi

The Company has implemented Wi-Fi with proper enterprise security features in SCOPE Minar as a pilot to enable mobiles and Bring your Own Devices (BYOD) of employees to be connected to Company network. Critical Conference Halls of work-centres of the Company have been connected to this WiFi allowing seamless roaming for users at all work-centres.

v)    LAN and WAN

State-of-the-art technology-based Network devices have been inducted in the Company which has been used to upgrade the LAN and WAN Infrastructure. This provides for secure and efficient network connectivity across the organization resulting in smooth IT experience and increased employee productivity.

vi)    Information Security Management System (ISMS):

ISMS Group is making all efforts in ensuring information security measures across the Company and for enhancing employee awareness on issues in the domain of Information Security and Cyber Security. In order to streamline and smoothen up the process of ISMS sustenance, two different phases of ISMS Audit cycles for 30 Data Centers and implementation of ISMS at 18 new Data Centers have been consolidated into a single audit cycle. This process ensures implementation of ISMS in a total 48 Data Centers of the Company. As part of efforts for enhancing employee awareness on issues and current trends in the domain of Information Security and Cyber Security, a Quarterly IS-e-Newsletter is being published regularly on ONGC Reports portal. So far, Five (5) issues have been published. Certification Audit for 48 Data Centers as per ISO 27001:2013 standard has also been completed by March, 2018. Advisories and Alerts received from CERT-In and NCIIPC were shared with Corporate IT Team for implementation and for keeping constant vigil. An Advisory by CISO on various Ransom wares was uploaded on "reports. ongc.co.in” Advisory received from CERT-In was mailed to IS-FORUM members and In-charges of Infocom Data Centers.

vii) Enterprise wide Access Control and Surveillance (EACS) Project:

A state of the art Enterprise wide Access Control and Surveillance (EACS) system project has been conceptualized to mitigate any threat perception to the security of the oil installations as well as offices of your Company. M/s BEL is the LSTK contractor to implement the project at 330 sites covering all the work centres of the Company. Project is likely to be fully operational by December 2018.

13. INDEG-Make in India Campaign

Your Company is leading the upstream sector for successful implementation of the Make in India campaign in the oil and gas sector. This major national program is designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing/services infrastructure to make India a manufacturing hub and bringing economic transformation in India.

Your Company carries its legacy of the pioneer corporate in initiative on Import Substitution and indigenization. In the last few decades, the Company has developed many Indian vendors and some of them are now international players in their areas. Company's initiatives has helped Public Sector Units to expand their capabilities, and the Company has helped creation of some of the large Indian Companies in services and projects areas of oil and gas. With the new thrust through the "Make in India” campaign, the Company has revived its multi-pronged approach to enhance the capabilities of Indian equipment, goods, services and projects market, through promotion of Indian vendors for development in India and through tie-ups with global players.

A.    Make in India and Localization Drive

Your Company's drive for localization of procurement and promoting Make in India is gaining momentum. The indigenous share of annual expenditure of the Company stood at 33.36% as compared to 32.7% in the previous financial year.

B.    In-house Refurbishment Capabilities

Catering to the humungous demand of BOP Repair/ Refurbishment in all work centres of the Company, Central Workshop (CWS) Vadodara has developed

BOP Repair Shop, the single in-house facility across the Company for repair/ refurbishment of Cameron, NL Shaffer and Hydril make BOPs of different sizes and pressure ratings as per OEM Standards. Being a critical safety equipment procured from overseas, BOP has always been important in the core activities of the Company.

The average repair cost of each BOP has been reduced from '5.85 million in 2014-15 to '3.2 million in 2016-17.

C.    Indigenization Initiatives

Your Company has conducted interactions with vendors and manufacturers including MSMEs / MSME (SC-ST) for promoting make in India at national and international forums. Spares for White Star Mud Pump, Spares for UPET work over rigs, Piston rod, extension rod, studs, wear plate for Pumps, Seal kits for NOV make TDS, were indigenized through domestic industry.:

D.    Initiatives to Develop Alternate Indigenous Source against Import:

Sl. No.	Name of Firm	Item Description
1	M/s Dhariyal Polymer, Ahmedabad	XC Polymer (a special mud chemical required for E&P operations)
2	M/s Madhu Hydrocolloids, Ahmedabad	XC Polymer (a special mud chemical required for E&P operations)

E. R & D Initiatives under Make in India Campaign:

An R&D collaborative project titled “Development of Shock Wave assisted fracking” is being taken up with a company promoted by professors of IISc Bangalore. The MoU was signed in the presence of Hon'ble Prime Minister. The cost of the project is '680 million.

14. ‘Start-up’ Initiative

The Company has launched Rs,1,000 million Startup fund on its 60^th foundation day, i.e. on August 14, 2016 to foster, nurture and incubate new ideas related to energy sector. The initiative, christened as ‘the Start-up', is in line with the Govt. of India's initiative ‘Start-up India'.

The initiative is intended to promote entrepreneurship among the younger Indians by creating an ecosystem that is conducive for growth of Start-ups in the energy sector, which has a huge potential for technology-enabled ideas. The energy sector is contributing enormously to the growth of economy. Currently, the sector faces various critical challenges and new ideas are required to mitigate those challenges.

A dedicated website startup.ongc.co.in for ‘ONGC Start-up' initiative was created for registration of proposals, and the Company entered into a MoU with IIT Bombay (IITB) and Society of Innovation and Entrepreneurship (SINE). Another MoU has been entered with L-Incubator of IIM Luck now for evaluation and incubation of Start-Ups selected by the Company.

As of now, two rounds of Start-Up selection have been completed. In the first round around 30 applicants were shortlisted in first lot of applications and invited for the pitching session at Mumbai. Steering Committee selected six startups for providing incubation support subject to further due diligence and acceptance of terms and conditions. MoU were exchanged with five selected Startups on 25.10.2017 in the presence of Honorable Union Minister Petroleum and Natural Gas.

In the second round, 20 applications were taken up for detailed evaluation by L-Incubator out of which 12 were identified for invitation to the Pitching Session before the Steering Committee. Pitching session for final selection was held on 06.06.2018. Five startups have been selected for funding and incubation support.

i. Innovation Challenge

Your Company launched Innovation Challenge on 18.05.2017 on innovate.mygov.in website hosting following five problem areas related to their area of operations viz. Artificial lifting Equipment for Horizontal Wells (including ESP Pump for horizontal wells), Flow Improvement in Crude oil pipelines, Data Computation and Analytics, Sand Influx Control during production of Oil & Gas, Mud loss in wells in Western Offshore.

The prize money for two best proposals in each challenge area was kept at '1 million and '0.5 million respectively.

Mr. Nirmal Ghotekar of Pune won prize of '0.5 million in Data Computation and analytics area for which award given on 26.01.2018, at Republic Day function in Dehradun.

ii. Solar Chulha Initiative

Hon'ble Prime Minister while dedicating the Corporate Office of the Company on September 25, 2017 exhorted the Company to take up a challenge of developing an energy efficient electric cooking stove, which would enable cooking through the use of solar energy.

Accordingly, your Company launched a nationwide Solar Chulha Challenge inviting Entrepreneurs/ Scientists/ Researchers with interest in innovation, to participate in the Indigenous Development effort on Design, Development and Demonstration of Solar Chulha (Electric and Thermal), suitable for indoor cooking of Indian food (including frying, baking and chapatti making).

A panel of eminent scientists drawn from various national institutions/ bodies was constituted under the leadership of former Chairman, Atomic Energy Commission, Dr. Anil Kakodkar for evaluation of applications.

Two round of evaluation by the expert panel was conducted on the 1550 applications that were received by closing date. For the demonstration of the proposed concepts, five participants were called during April 23-24, 2018.

Top three entries were awarded '1 million, '0.5 million and '0.3 million respectively.

Your Company will be procuring 1,000 units for demonstration in different regions.

15. Health, Safety and Environment (HSE) Accreditations and Other achievements-

Being a high risk industry, safety of its employees is the top-most priority of your Company. Hydrocarbon exploration & production (E&P) operations are being carried out in varied climate and environment areas ranging from deserts to coastal areas, hilly terrains to forest areas, shallow water to deep waters and also in ultra-deep water areas. E&P activities often interact with the ecosystems and may have physico-chemical & bio-geochemical impact on the surrounding environment. Your Company, being a responsible Corporate makes all efforts for protection and preservation of environment. The Company has recently revised its Environment

Policy and e-Waste Policy in line with the existing rules, regulations and guidelines. Your Company has a dedicated Institute, viz. Institute of Petroleum Safety and Health Management (IPSHEM) at Goa for Research and development in the field of Health, Safety and Environment Management apart from conducting training Programmes.

Your Company takes all the requisite measures to minimize the impact of E&P activities on the environment by adoption of clean technologies for gaseous emissions, liquid effluent and solid waste generated out of its operations.

Your Company has implemented globally recognized QHSE Management System conforming to requirements of QHSE Certifications ISO 9001, ISO 14001 and ISO 18001 (OHSAS) and certified by reputed certification agencies at all its operational units. Corporate guidelines on online incident reporting, investigation and compliance of audit observations have been developed and implemented for maintaining uniformity throughout the organization in line with international practice.

Highlights of HSE during 2017-18:

a. Internal and External Safety Audits: To check the conformity of activities and processes to HSE management systems as well as to prevalent rules, regulations, guidelines and standards, regular audits are being conducted by external agencies, namely Oil Industry Safety Directorate (OISD) & Directorate General of Mines Safety (DGMS) and Internal Safety Audits (ISA) by multi-disciplinary teams of the Company.

OISD is a technical directorate under Ministry of Petroleum & Natural Gas. It carried out audits of 34 Onshore installations, 13 Offshore Installations and 2 Gas Processing. Also pre-Commissioning Safety Audit of Navagam-Koyali pipeline and two units of Hazira Gas processing Plant was carried out during 2017-18. The Operational area-wise compliance during 2017-18 is 95.86 for Onshore operations, 76.65% for Offshore operations, 71.40% for Process plants, 82.53% for Pipelines.

DGMS is a Regulatory Agency under the Ministry of Labour and Employment, Government of India, in matters pertaining to occupational safety, health and welfare of persons employed in mines (Coal, Metalliferous and oil-mines). It carried out inspection of 176 Onshore Installations in 2017-18.

Your Company gives highest priority to the implementation of the observations raised during External Safety Audits (ESA) and Internal Safety Audits (ISA). Compliance status to the observations is summarized as under:

Internal Safety Audits(ISA)	External Safety Audits(ESA)
	OISD	DGMS
91.3%	92.42%	93.26%

b.    Waste Water Management: To monitor the discharge of pollutants into environment and to meet statutory requirements, Your Company has setup 26 number of Effluent Treatment Plants (ETPs), across onshore work centres to treat approx. 78110 m3/day of waste water produced during E&P operations. Produced Water Conditioners (PWCs) have been installed at process platforms for Offshore effluent treatment. For treatment of sewage water being generated in offshore facilities, Sewage Treatment Plants (STPs) are provided on board to treat the sewage before discharge.

c.    Solid Waste Management: For environmentally safe disposal of oily waste, your Company has a Joint Venture company ONGC-TERI Biotech Limited (OTBL) which has developed specialized patented technology for bioremediation of oily sludge/oil contaminated soil. The technology uses a consortium of Hydrocarbon degrading bacteria which reduces the TPH (Total Petroleum Hydrocarbons) levels in waste/ soil to less than 1% during 2017-18, 54012 MT of oily sludge / oil contaminated waste has been bio-remediated.

d.    Environmental Clearances: Ministry of Environment Forest and Climate Change (MoEFCC) has granted 21 Environment Clearances for Exploration, Development and Production activities. These include clearance for 441 wells in onshore and offshore; Combined Cycle Power Plant at Hazira; Desalination Plant and LPG Storage Bullets at Uran; and Shale Gas exploration in Cambay and KG-PG Basin.

e.    Other initiatives during the year 2017-18:

(i) Ten Safety Rules Awareness Program: Under Ten Safety Rules Awareness Programs, a total of 28,497 personnel (including contract personnel)have been covered since inception (February, 2017). Almost all the field employees have been covered. Now, it is a permanent feature of safety aspects.

(ii)    Mines Vocational Training (MVT, 1966): A total of 2,034 personnel (523 employees and 1511 contract personnel) were imparted MVT during FY'18.

(iii)    Viniyaman Sangam: A national level awareness program “Viniyaman Sangam” on Oil Mines Regulations-2017 (OISD standard based) was organised on September 15-16, 2017. The program was attended by more than 110 participants including officials from DGMS, OISD, Key Executives and officers from different work centres.

(iv)    Review of Oil Mines Regulations: To facilitate working in the fields and improve safety standards, DGMS had formed a committee to review OMR-1984. The Company was represented by Corporate HSE and contributed significantly. Suggestions given by Corporate HSE were incorporated in updated Oil Mines Regulations-2017 which was notified by the Ministry of Labour & Employment on August 19, 2017.

(v)    Compendium of Generic observation: A compendium was prepared and uploaded in your Company's internal portal for uploading the status by self-auditing by OIMs (Offshore Installation Mangers)/ IMs (Installation Managers) /DICs (Drillsite Incharges) / REs (Resident Engineers)/ RPS (Resident Production Superintendent. The status is continuously monitored by CHSE.

(vi)    Training to students and initiative for Skill development: To provide training and firsthand knowledge about the actual Oil field conditions to students, an E&P Park has been constructed at Ankleshwar-ONGC Colony in which various geological Models, oil Samples, core samples and model of artificial lift have been displayed along with actual field equipment/ machineries like work-over rig (CW-100-Vl), sucker rod pump, mud pump, CMT (Crisis Management Team) module, group separator, test separator, gas flaring facility, heater-treater, x-mas tree, knock out facility and flexible water tank. For training and demonstration logging units, cementing units and fire tenders are made available whenever required. The facility can also be used to give training to local ITI students and on job and MVT trainings. Two batches of apprentice trainee have also been trained.

(vii)    Hazard Alert Card (HAC) was launched to capture unsafe acts and unsafe conditions. Any employee can report unsafe act and unsafe conditions and place the card in the drop box. Safety Officer and Installation Managers shall take action on the same. Monitoring mechanism has also been formulated and put in place.

(viii)    HSE Index for benchmarking installations on various parameters like detection and suppression system, environment parameters, evacuation systems, equipment integrity etc., is being followed regularly on monthly basis by Offshore Process Complexes. In the second phase, Offshore Drilling Services and thereafter Process Plants and Onshore installations/ rigs are scheduled in third phase. Reporting on HSE Index is scheduled to be completed across the Company by August 2018.

(ix)    Mock Drills and Exercises on Oil Spill Response: Exercise “Prasthan” was conducted by Regional Contingency Committee (West) comprising of 12 agencies viz. Navy, ICG, Air Force, ONGC, JV, Cairn, DG Shipping, MbPT, JNPT, Govt. of Maharashtra, Gujarat and SIB on November 21 - 22, 2017 by activating Regional Contingency Plan to practice the emergency handling by co-ordinated joint action.

(x)    Oil Spill Exercise by Indian Coast Guard: An

Oil spill Response exercise was conducted by Indian Coast Guard on March 13 - 14, 2018 off Kakinada Coast in Eastern Offshore. Further, mock drills are being regularly conducted at Offshore Process Complexes, Offshore Drilling Rigs, FPSO (Floating production storage and Offloading) and MSVs (Multi Support Vessels) to check the level of preparedness, identify grey areas and take corrective actions.

(xi)    Guidelines regarding disposal of chemical and other laboratory waste: Your Company for the first time issued a uniform guidelines for disposal of laboratory chemical waste/ samples/ gases and other waste for oil field chemical testing laboratories and R&D institutes of the Company.

f. Initiatives for Environment Protection and Conservation: Apart from the various steps taken for Environment Protection and Conservation provided above, Forestation is emphasized through Mangrove and Ringal Plantation to contribute towards reduction of pollution.

-    Mangrove Plantation: Project Mangrove was initiated with the aim to stabilize shoreline close to Company's Assets and to protect the wells from soil erosion in Gandhar field on the river Dhadar shoreline. During Phase-I of project, plantation of a total of 17,85,250 mangrove saplings, seedlings and propagules in 100 hectare area of Gandhar field, Ankleshwar in Gujarat; and in Phase-II, plantation of a total of 2.16 million mangrove saplings, seedlings and propagules in Gandhar field, Ankleshwar and near Hazira Plant, Hazira in Gujarat was undertaken by your Company.

-    Ringal Plantation: To sustain fragile ecosystem of Himalayas, ringal plantation in Upper Himalayan Region is being carried out as an initiative under National Action Plan on Climate Change launched by the Prime Minister. Your Company, being a responsible organization towards protection of environment, has always given high importance to plantation and their survival, not only at its operational work areas but also in areas outside its work-centre. A total of 1.075 million Ringal plantation in 430 ha of Upper Himalayan region has been done, resulting in 1.97 million tonnes of CO₂ fixation per annum.

Accreditations:

QCI-NABET Accreditation: Your Company is the 1^st PSU to be accredited by National Accreditation Board for Education & Training (NABET)-Quality Council of India (QCI) as the Consultant Organization for the purpose of carrying out Environment Impact Assessment (EIA) studies and preparing EIA reports for offshore and onshore Oil and Gas Exploration, Production and Development. The accreditation has contributed to improve Company's image apart from significant financial and time savings.

16. Carbon Management & Sustainable Development

Sustainable Development is the overarching working template in the Company and this finds expression in our commitment to continually enhance the triple bottom line benchmarks of economic, environmental and social performance.

The Company has a dedicated set up called Carbon Management and Sustainability Group (CM&SG) at the corporate level, with adequate resources and empowerment. CM&SG is a group of professionals from various disciplines to plan, implement and monitor sustainable development activities in association with Sustainable Development Officers (SDOs) located at work centres.

Sustainable Water Management (SWM)

As an E&P Company, the Company's business depends on sustainability of water resources which are presently under pressure. Globally, per capita availability of freshwater is steadily decreasing and trend will inevitably continue with the increasing consumption levels and, as climate change unfolds. In this situation, it is imperative for the Company to develop new strategies for water management in order to achieve sustainable growth and development.

Rainwater Harvesting (RWH) projects: Rain water harvesting is the collection and storage of rainwater for beneficial uses like washing, irrigation, gardening, etc. as well as for recharging of ground water aquifers, rather than allowing it to run off into drains. The Rainwater harvesting policy of the Company provides the necessary framework and guideline for pan India implementation of the rainwater harvesting projects.

Also the existing Rainwater harvesting policy is being modified with the perspective of extending the scope of carrying out rainwater harvesting outside the operational boundaries of the Company and provide climate resilience to the nearby areas from draught and flood.

Sea Water Desalination: With fresh water scarcity looming large across the world and especially in India, desalination of seawater has become one of the most important tools to address the increasing demand of fresh water. Your Company is setting up a 10 MLD Sea Water Desalination Plant within Uran Processing Plant. The Plant can be upgraded to an increased capacity of 20 MLD if there is an increase in fresh water requirement. Uran process plant, situated in Maharashtra near Mumbai is one of the most important plants of the Company, responsible to process the crude coming from Mumbai High Assets and producing value added products from it. The desalination plant will mitigate the fresh water risks of the processing plant and contribute towards environmental sustainability of the area.

Your Company is also in the process of setting up seawater desalination plants in other coastal work centres to ensure freshwater availability and sustainable growth. Feasibility study is being conducted at MRPL and Rajahmundry Asset to set up desalination projects of appropriate capacity.

Sewage Treatment Plants: Three numbers of Sewage Treatment Plants each with 199 Kilo Litres/ day (KLD) capacity are under construction at ONGC colony, Mehsana Asset.

Water Footprint Study: To understand the pattern of freshwater consumption, its sources and possibilities of reduction in consumption, water foot print studies are carried out across the work centres by utilizing our in-house expertise. This year a table top analysis of Assam Asset data had been carried out.

Clean Development Mechanism Projects

Emission reduction through CDM projects:

The Company commenced its Clean Development Mechanism (CDM) journey in 2006. Currently, there are has 15 registered CDM projects with United Nations Framework Convention on Climate Change (UNFCCC) that yield (potential) Certified Emissisons Reductions (CER) approx. 2.1 million yearly. The list of registered CDM projects along with CER is given at Point No. 6.10 of Business Responsibility Report.

Your Company has taken an initiative to extend the credit period permissible under CDM regulation, subject to the merit of the project, for another

7 years for 51 MW Wind Power Project Surajbari, Gujarat. The project was registered with UNFCCC as a CDM project in the year 2010 with a credit period of 7 years. Besides, Your Company is also in the process of validation and registration of new CDM projects with UNFCCC. These are Coal Bed Methane (CBM) Asset, Bokaro, C2-C3 Plant Dahej, Gujarat, Waste Heat Recovery Unit, MH Asset, 10 MW Solar Power project Hazira, Gujarat.

Sustainability Reporting

The Company has first launched its independently assured sustainability Report in the year 2009

10 and from there onwards the Company has incrementally enhanced the boundary of reporting to include our subsidiaries OVL and MRPL and from FY'17 onwards the Group Corporate Sustainability Report is launched by including the Venture companies OTPC, OPaL and OMPL. The GRI based externally assured reports are now a major enabler to the Company towards creating triple bottom line value creation and parity to all forms of capital.

Setting up of Pilot “Waste to Fuel” project in Puri city under Swachh Bharat Abhiyan of the GoI.

Your Company has set up a pilot "Waste to Fuel” project in the holy city of Puri, Odisha as a CSR project under the Swachh Bharat Abhiyan of the GoI. Waste to fuel projects are an emerging area in the field of municipal solid waste management where in the collected wastes are segregated and processed for generating solid/ liquid/ gaseous fuel from it. For setting up the proposed pilot plant, Puri municipality has agreed to provide necessary land and also supply ofMSW to the plant regularly during the entire life cycle of the plant. The Company will infuse necessary capital expenditure in the form of CSR grant. The plant will segregate the mixed wastes generated daily and process them through latest and cost efficient technologies for generating fuel from them.

A Study on Climate Change Risks: Preparedness for

Oil and Gas sector

Your Company in association with other oil and gas sector PSUs conducted a Scientific “Study on Climate Change Risks: Preparedness for Oil and Gas sector” by The Energy Resource Institute (TERI) and Federation of Indian Petroleum Industry (formerly Petroleum Federation of India). The aim of the study was to understand and assess climate change risks to the upstream, midstream and downstream infrastructure of Oil & Gas sector in India along with challenges due to emerging climate policies and to develop a framework to facilitate integrate climate change risks in to strategic decision making.

17. Business Responsibility Report 2017-18

Clause (f) of sub-regulation (2) of regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, stipulates that the annual report shall contain a Business Responsibility Report describing the initiatives taken by the listed entity from an environmental, social and governance perspective in the format specified. Accordingly, the Business Responsibility Report for 2017-18 has been appended to this Annual Report.

18.    Internal Control System

Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business; 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 financial information, commensurate with the operations of the Company.

Effectiveness of Internal Financial Controls is ensured through management reviews, control self assessment and independent testing by the Internal Audit Team indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls were operating effectively. The Audit & Ethics Committee reviews the Internal Financial Controls to ensure their effectiveness for achieving the intended purpose.

Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is attached along with the Financial Statements.

19.    R&D efforts through ONGC Energy Centre Trust (OECT)

I. Patents-granted International Patents:

During FY'18, against three International PCT patents on Cu-Cl cycle, filed earlier, jointly by OECT and ICT-Mumbai in six countries (USA, Canada, Japan, UK, Korea and China) the following two applications were granted:

1. ‘Effect of Operating Parameters on the Performance of Electrochemical Cell in Copper-Chlorine Cycle'

- granted in UK. (Patent already been granted in Japan, Canada and USA).

2. ‘Electrochemical Cell Used in Production of Hydrogen Using Cu-Cl Thermochemical Cycle'

- granted in China (Patent already been granted in Canada, Japan, UK and USA).

National Patents:

During FY'18, the following two National Patents were granted:

1.    “Hydrogen Production Method by Multi-Step Copper-Chlorine Thermochemical Cycle”, jointly filed by OECT with ICT, Mumbai vide Patent No. 294447.

2.    “Effect of Operating Parameters on The Performance of Electrochemical Cell in Copper-Chlorine Cycle” jointly filed by OECT with ICT, Mumbai vide Patent No. 294960.

Patents filed National Patents:

During FY'18, two National Patent were filed in India:

1.    National Patent for title of invention “A molten salt composition for high temperature thermal energy storage” (India: 201721016058) has been filed jointly by OECT with ICT, Mumbai.

2.    National Patent for title of invention “Acid and oxidative resistant cation exchange membrane for electro dialysis, electrolysis and other electrochemical processes” (INDIA: 0016NF2018) has been jointly filed by OECT with CSIR-CSMCRI.

International Patent:

Against National patent filed earlier, three PCT applications were filed during 2017-18:

1.    PCT application No. PCT/IN2017/050151 titled ‘Catalyst composition for conversion of Sulphur Trioxide and Hydrogen Production Process' was filed jointly by OECT with IIT Delhi on April 28,

2017.

2.    PCT application No. PCT/IN2017/050150 titled ‘Process for conversion of Sulphur Tri-oxide and Hydrogen Production' was filed jointly by OECT with IIT Delhi on April 28, 2017.

3.    PCT application PCT/IN2017/050461 titled “Methane Production From Underground Coalbed Methane Wells” was filed jointly by OECT with TERI Delhi on October 10, 2017.

II. New Projects

During FY'18, OECT has taken up twelve (12) new in- house/ collaborative projects, besides new initiatives.

The details are given below:

A.    Uranium Exploration:

1.    Drilling, coring and logging of 8800 meters (16 parametric boreholes) in Kaikalur Lingala area, KG Basin Andhra Pradesh - In house project.

2.    Drilling, coring and logging of 20,150 meters (43 parametric boreholes) in SON Valley and Sagar area, M.P and Karjan - Padra area, Gujarat - In house project.

3.    Development of ISL Process for extraction of Uranium from Subsurface deposits”- In house project with KDMIPE: to develop leachant formulations of prospective exploration areas.

B.    Hydrogen Program:

4.    Further Investigations on ICT-OEC Cu-Cl Cycle: Studies on Separations, Material Screening and Integration of Molten Salt Media with Cu-Cl cycle

-    In collaboration with ICT Mumbai.

5.    Hydrogen storage using Colloidal Gas Aphrons (CGAs) and CGAs-loaded with metal hydrides - In collaboration with IIT Delhi.

C.    Biotechnology Program

6.    Demonstration of in-situ stimulation and bio-augmentation for methane generation/ enhancement from producing CBM wells of Jharia

-    In collaboration with TERI, Delhi.

7.    Development and Demonstration of Bioconversion process for generation of methane from subsurface lignite deposits - In collaboration with TERI and ARI.

8.    Design, Development and demonstration of microbial methane generation process suitable for Poor to marginally producing CBM wells - In collaboration with TERI- DST.

D.    Others

9.    Proof of concept Design of Photo-catalytic Reactor and Demonstration of Recycling of Carbon Dioxide into Hydrocarbons using Solar Energy - In collaboration with IIT Madras.

10.    Laboratory scale investigation on chemical treatment of subsurface lignite deposits to enhance the conversion of lignite to methane - In collaboration with CSIR - IICT, Hyderabad.

11.    Development of sludge free clean technology for treatment of Industrial effluent-with TERI.

12.    Utilization of waste heat from produced water for heating well fluid at North Kadi, GGS IV, Mehsana -North Gujarat with EIL.

13.    Refurbishment / Revival of Helium extraction pilot plant at GCS, Kuthalam.

14.    Selection of Materials for Construction in Cu-Cl cycle and related activities.

15.    Development of Sensors for H2S and SO2 detection with BARC: In view of indigenous development H2S & SO2 sensors by BARC.

16.    Solar Thermal Energy for well fluid processing at Company installations to reduce fuel gas consumption: A Feasibility report has been prepared through UNIDO.

20.    Human Resources

Your Company values its Human Resources to the most. To keep their morale high, your Company extends several welfare benefits to its employees and their families by way of comprehensive medical care, education, housing and social security.

21.    Human Resource Development

32,265 ONGCians dedicated themselves for securing excellent performance of your Company during the year. The workforce intake strategy pursued by your Company caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, fast changing level of technology, physically challenging work environment, fluctuating product prices and growing competition. Your Company has drawn-up a scientific manpower induction plan aligned to the business plans as well factoring the manpower profile of the Company.

The following specific initiatives were taken to strengthen HR processes:

- Online submission of ACR/APAR in respect of all executives (E0 and above) was taken up successfully along with compliance of prescribed timelines with regard to writing of ACR/ APAR (% of number of executives) which have been 99.75%.

-    100% achievement has been in respect to Online Quarterly vigilance clearance updation for Senior Executives (E5 and above level officers).

-    Preparation of succession plan was approved by the Board of Directors on September 28, 2017.

Your Company believes that continuous development of its human resources fosters engagement and drives competitive advantage. Towards that end, during the year, your Company conducted Business Games to hone the business acumen of its executives in a competitive scenario under simulated business constraints. Business Games has proved to be very popular initiative and tests the ability of the executives through business quizzes, business simulations and case-study presentations. During the year 2017-18, a total of 159 teams and 636 executives participated in the event. Fun Team Games (FTG) were organized for E0 and below level employees to inculcate MDT (Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. A total of 119 Teams and 476 employees participated in FTG during the year 2017-18. The winners of Business Games and Fun Team Games were felicitated by the CMD on Republic Day Celebrations.

Your Company has branded the spectrum of its training activities as ‘EXPONENT', a comprehensive programme which is nurturing the energy leaders of tomorrow. The growth of an ONGCian to an Exponent of energy business is facilitated by ONGC Academy, Skill Development Centers (SDCs), other in-house Institutes; in association with globally recognized trainers. Training Institutes of ONGC organize training in all dimensions - Technical as well as non-technical and Managerial.

During the year, a total of 17,947 Executives and 5,319 non-executives were imparted appropriate training, spanning 167,369 executive and 17,817 non-executive mandays across work centres.

With an aim to give an impetus to talent management and carrier progression practices, your Company exposed 11.9% of its Executives of E-5 level and above to at least one week training through Centres of Excellence viz. IITs, IIMs, NITs, ICAI etc. Further, in order to assimilate new and emerging technological advancements pertaining to oil and gas exploration and production, 14 training programmes were conducted through foreign faculty during the year through which 302 participants got the requisite exposure.

22. Employee Welfare

Your Company continues to extend welfare benefits to the employees and their dependents by way of comprehensive medical care, education, housing, and social security. Your Company continues to align its policies with changing economy and business environment.

Employee Welfare Trusts -

Your Company has established the following major Trusts for welfare of employees:-

-    Employees Contributory Provident Fund (ECPF) Trust, manages Provident Fund accounts of employees of your Company.

-    The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pension fund of employees of your Company. The Scheme was converted into a Defined Contribution Scheme as per DPE Guidelines in November, 2013.

-    The Composite Social Security Scheme (CSSS) formulated by your Company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. In case of Separation other than Death/ Permanent total disability, employees own contribution along with interest is refunded.

-    Gratuity Fund Trust exists for payment of gratuity as per the provisions of the Payment of Gratuity Act.

-    Sahayog Trust Your Company has a Sahayog Trust for its Sahayog Yojana to provide ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the welfare of the workforce and their kin, who do not have adequate means of support. The beneficiaries under this scheme include casual, contingent, daily rated, part time, adhoc, contract appointees, tenure based employees, apprentices and trainees employed by your Company besides regular and past employees. Under the scheme an amount of '48 million was disbursed by the Trust during 2017-18 to 1200 beneficiaries.

-    Asha Kiran Scheme Your Company has Asha Kiran Scheme to meet the emergency needs of the ex-employees retired prior to January 01, 2007. The scheme was launched as per DPE Guidelines by creating a corpus of 1.5% PBT.

Implementation of Government Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Casts (SC) and Scheduled Tribe (ST) employees were 15.3% and 10.10% respectively as on March 31, 2018.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their up liftment in and around its operational areas.

Annual Component Plan:

Under Annual Component Plan for SC/ST, every year an allocation of Rs,200 million is made since FY'12. Out of this, Rs,60 million is distributed amongst all the Work centres of the Company for taking up activities for welfare of SC/ST Communities in and around the areas of our operations. In addition, Rs,140 million is managed centrally, and is earmarked for Special projects/ proposals/ schemes for the welfare of areas/ persons belonging to SC/ST communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical and Health Care.

Scholarship to SC/ST meritorious students

Your Company provides 500 scholarships for meritorious SC and ST students for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The major feature of the scheme is that the scholarships have been equally divided for both Boys and Girl students and the amount of scholarship has been made at Rs,4,000/- per month amounting to Rs,48,000/- per annum per student as per terms and conditions of the scheme.

23.    Industrial Relations

During the year your Company maintained harmonious Industrial Relations throughout the year. Mandays loss due to internal industrial action was reported as ‘NIL' for the year 2017-18.

24.    Grievance Management System

Your Company has put in place an effective online response mechanism (https://grievance.ongc.co.in) since 2015 to enable all stakeholders viz. citizens / vendors / employees / former - employees, to register and get online redressal to their grievances related to any operational wing.

Your Company has also put in place a Grievance Management System for redressing employee grievance, which provides for three-tier channel for grievance redressal with an Independent Appeals Committee, at Corporate Level, which is chaired by an external professional to ensure transparency and justice. The Appeals Committee situated at Corporate Office can also be accessed for settlement of grievances in case the location Channels are not effective in resolving the grievance. Further, provision for representation through Chief Liaison Officers of SC/ST/OBC in the Appeals Committee has also been in-built to protect the interest of reserved category employees.

For external stakeholders, the Company has a well laid down grievance redressal system in place with adequate provisions to escalate the matters up the hierarchy up to the Board (stakeholders Relationship Committee

- a Board level Committee headed by an independent Director).

The Company voluntarily facilitates resolving grievances through Independent External Monitors (IEMs) and through Outside Expert Committee (OEC).

25. Implementation under the Right to Information Act (RTI Act), - 2005

An elaborate mechanism has been set up throughout your Company to deal with requests received under the RTI Act, 2005. An Officer of General Manager level, based at the Registered Office at Delhi, has been designated as ‘Nodal Officer' for the purpose. Besides this, 22 officers have been designated as ‘Central Public Information Officers' (CPIOs) at different work centers across the country, in compliance of provisions of the Act. The particulars of all the quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the Company website (www.ongcindia.com) for wider information of the general public. In compliance of Government directives, your Company has successfully introduced online processing of applications under the Act from August, 2016 onwards.

111 applications were carried forward from the year 2016-17. Further, 1719 applications were received during the period from April 2017 to March 2018. A total of 1647 of the 1830 applications received were responded to during the period in accordance with the provisions of the RTI Act 2005. There were 273 first appeals which were disposed off during the period. Additionally, the Department of Public Information/ RTI Cell also processed 109 Second Appeals which were listed for hearing at the Central Information Commission (CIC) during FY' 18.

26.    Implementation of Official Language Policy

Your Company makes concerted efforts for promotion and implementation of Official Language. In this regard, some of the steps taken during the year were: -

-    Unicode Hindi software installed in our all offices.

-    Hindi workshops conducted at regular intervals in all work centres.

-    Hindi Technical seminars, ‘Kavi Gosthies' and Hindi plays organized at various work centres.

-    Various programmes for promotion of ‘Rajbhasha' were organised at all work centres of the Company during ‘Rajbhasha Fortnight' (September 14 - 28, 2017) and ‘Vishwa Hindi Diwas' (January 10, 2018).

-    Hindi Teaching Scheme of Government of India was effectively implemented at all regional work centres of the Company.

-    E-Roster of Employees regarding working knowledge of Hindi was put in place.

-    Hindi e-magazines were published at various work centres.

-    Rajbhasha implementation Help Book was uploaded in the local intranet and internal portal of ONGC.

-    Paperless office (DISHA) has been made bi-lingual for effective implementation of Official Language policy in the office works.

-    In recognition of the initiatives taken for promotion of Rajbhasha, your Company was awarded with the ‘Petroleum Rajbhasha Shield' of Ministry of Petroleum & Natural Gas as well as “Rajbhasha Gaurav Award” by the Ministry of Home Affairs during the year.

27.    Women Empowerment

Women employees constituted over 6.7% (March 31, 2018) of your Company's workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its lady employees for programmes organized by reputed agencies. Over 2000 employees successfully underwent online gender sensitization module.

Disclosure under the sexual Harassment of women at workplace policy (prevention, prohibition & redressal) Act, 2013:

Your Company has complied with the provisions under the Sexual Harassment of women at workplace (Prevention, Prohibition & Redressal) Act, 2013 including constituted on Internal Complaint Committee (ICC) for dealing with the complaints on sexual harassment of women at workplace. Four complaints of sexual harassments were received in the year 2017-18. Reports of ICC have been submitted in all the cases.

28.    Work-Life Balance:-

Your Company continued in its endeavors to ensure work-life balance of its employees. The townships at many work-centers were provided facilities like gymnasiums, music rooms, etc. Facilities for gym, yoga, etc. were also provided in Offshore Living Quarters. Outbound programmes with families were also organized at various work-centers. Plays on the importance of ‘Work-Life Balance' were staged to create awareness amongst the employees. In addition, cultural programmes involving employees and their families were also conducted. Mahila Samitis and Resident Welfare Associations (RWAs) were involved in the organization of these cultural programs. Your Company has a adventure wing named ONGC Himalayan Association which organizes adventure programmes like mountaineering, trekking, white water rafting, snow skiing, desert Safari, Aero sports etc. which adds towards morale, engagement, team spirit, camaraderie, stress management and spirit to explore unknown traits among the employees.

29.    Sports

Your Company continues to extend sustained support for development of sports in the country through employment to 173 players and scholarships to 289 upcoming sportspersons in 23 game disciplines. Financial assistance to various Sports Associations / Federations/ Sports Bodies to organize sports events as well as to develop infrastructure was also extended.

Some of the key achievements of our sportspersons during the year were:

-    Mr. Pankaj Advani was conferred with prestigious Padma Bhushan Award in April 2018.

-    3 ONGCians were conferred with the prestigious “Arjuna Award” for the year 2017, namely Ms. Vennom Jyothi Surekha (Archery), Mr. Jasbir Sngh (Kabaddi) and Mr. Amal Raj (Table Tennis).

-    Mr. Bhupender Singh (Athletics) was conferred with the “Dhyanchand Award”.

-    The total number of National Sports Awardees in your Company now stands at 40 (Padma Bhushan

- 1, Khel Ratna - 1, Padma Shri - 3, Arjuna Award -34 and Dhyanchand Award - 1).

-    In the Common Wealth Games 2018 at Gold Coast, Australia, Company's sportspersons bagged 13 medals including 5 Gold, 3 Silver and 5 Bronze, contributing to the overall Medal tally of 66 Medals of Team India. The strength of your Company players in the Indian contingent was 21. ONGCian Mr. Yadwinder Singh led the Sr. India Basketball Men's team.

-    ONGCians contributed five Medals including 2 Gold, 1 silver and 2 Bronze Medals in Indian Tally in Asian Athletics Championship 2017. ONGC athletes Ms. M. R. Poovamma won Gold Medal in 4X400 mtrs relay race, Ms. Swapna Barman won Gold in Heptathlon, Ms. Anu Raghwan won Silver Medal in 400 mtr hurdle race, Ms. Sanjeevani Jadhav won Bronze Medal in 5000 mtrs and Ms. Seena N. V. won Bronze Medal in Triple Jump.

-    ONGC trio of Mr. Pankaj Advani, Mr. Sourave Kothari and Mr. Rupesh Shah secured Gold, Silver and Bronze Medal respectively in 2017 ONGC-Asian Billiards Championship held in April 2017. This was Mr. Pankaj Advani's 7^th Asian Billiards Title. Mr, Pankaj Advani also won his 19th World titles in cue sports Doha, Qatar in March 2018.

-    Ms. Yuki Bhambri won the ATP Challenger World Ranking Tennis tournament held at Pune in November, 2017.

-    Mr. Siddhanth Thingalaya participated in World Indoor Athletics Championship March 2018 at Birmingham. He was the only Athlete representing India for this event.

-    ONGCian Mr. Virat Kohli is currently leading the Indian Cricket team as Captain in all Match formats i.e. Tests, One Days & T-20s.

-    ONGCian Mr. Sai Praneeth won his maiden Singapore Super Series Title in April 2017.

-    ONGCian Mr. H S Prannoy won US Open badminton 2017 title in July 2017.

-    Ms. Heena Sidhu won Gold Medal in Commonwealth Shooting Championship 2017 in Gold coast, Australia in November 2017.

-    Three Kabaddi players Mr. Pradeep Narwal, Mr. Sandeep Narwal and Mr. Sachin were the part of Indian Kabaddi team that won Asian Championship held at Iran from November 22 - 26, 2017.

-    Mr. G Sathiyan, Table Tennis player won God Medal in ITTF Challenges Series Spanish Open in Nov. 2017.

-    10 ONGCians duly trained through rigorous winter training programme successfully summated Mt. Kanchenjunga (8,586 m) in May 2018. Earlier in May 2017, 6 ONGCians scaled Mt. Everest (8,848 m)

30. Corporate Social Responsibility (CSR) NGC CSR - Partnering for Inclusive Growth

In the financial year 2017-18, your Company ensured more than 100% utilization of CSR budget amounting to Rs,5,034 million against the budget of Rs,4,870 million.

As stipulated in the Section 135 of the Companies Act 2013, your Company has a Board Level Committee on CSR namely CSR and SD Committee, who has approved 19 major CSR projects amounting to '2,600 million in FY'18. Besides, a detailed standard operating procedure on CSR has been rolled out to bring in standardization and transparency in the process of implementing CSR projects.

Expenditure of '5,034 million has been made possible by implementing and executing more than 2400 CSR projects / programs in the areas of Swachhta, Health, Education, Environment, Skill Development and Vocational training by Corporate CSR and 24 work centres of the Company.

Your Company has undertaken number of flagship initiatives under Swachh Bharat Abhiyan, with an expenditure of Rs,1,844.6 million. An amount of Rs,1,320.3 million was spent towards implementing projects on promoting education, livelihood and skill development. Another, Rs,1,307.9 million was spent towards creating health Infrastructure and on preventive health care programs/projects. Rest of the expenditure was towards implementing projects related to environment sustainability, women empowerment, sports, rural development, capacity building, etc.

CSR footprints of the Company can be traced from J&K through the project implemented by joining hands with Indian Army to seashore of Rameswaram by executing an impactful solid waste management program. This year had also seen the Company implementing projects worth Rs,776.3 million among the states of North-East India.

A Separate report on Corporate Social Responsibility (CSR) activities undertaken by your Company during the year FY'18 is enclosed as Annexure 'B.

Major Swachh Bharat Initiatives: At a glance :

-    Rs,1,844.6 million worth of CSR projects/ Program implemented across the country.

-    21085 nos. ofIndividual Household latrines(IHHL) constructed across India.

-    53 community toilets projects.

-    234 school toilets.

-    181 Water Ro Plant/ Water ATM proj ects.

-    358 Tube Wells installed.

-    11 Solid Waste Management projects.

-    14 projects on Smoke Free Village.

-    3 project on development and beautification of parks.

Restoration of Kunds in Varanasi:

Your Company took the responsibility of cleaning and beatification of four famous Kunds of Varanasi namely Durga Kund, Lakshmi Kund, Lat Bhairav Kund, Karim Kund at a cost of Rs,114.6 million under Swachh Bharat Mission programme driven by Government of India. Hon'ble Prime Minister inaugurated the Durga Kund and Lakshmi Kund at Varanasi. The project is being implemented in partnership with National Buildings Construction Corporation Ltd and Nagar Nigam Varanasi.

Swachh Iconic place: Clean and green initiative at Tirumala Tirupati Devastanam

As part of Government of India Initiative for Swachh iconic places, Your Company has taken up clean and green initiative at Tirumala Tirupati Devastanam, where 7 km long separate water pipelines is being laid for pumping treated waste water from tertiary treatment plants to gardens along the ghat road. Also 130 cleaning machines and solid waste management plant of capacity 30 MT per day has been installed. Apart from this, energy saving measures like installation of SCADA system and battery operated vehicles for pilgrims is also being introduced. Lakhs of devotees visiting this shrine will be benefited through this project. An amount of '130 million is sanctioned towards implementing this project.

Deep Water Drilling Project along the Paleo Channels of river Saraswati

The ancient and mythological river Saraswati has been known since the Indus valley civilization. There are several places in Haryana, Punjab and Rajasthan where evidence is found of its existence, as the water from this river is known to surface at several places. To tap the water of river Saraswati which is flowing several hundred meters below the surface, Haryana Saraswati Heritage Development Board (HSHDB) approached the Company. A survey was conducted by a team of experts from the Company to locate the paleo-channels existing underground in the northern part of indo-gangetic plains. Accordingly, it was agreed by the Company for drilling of 10 wells, where there is a high possibility of tapping water. An agreement was signed with Water and Power Consultancy Services Limited (WAPCOS) for drilling these wells. Nine out of ten wells have been successfully drilled and producing water in good quantity.

Bio-CNG Plant at Haridwar:

Your Company has undertaken an unique initiative in Haridwar to convert cow dung to useful fuel and value added products by setting up Bio-CNG cum Fertilizer and Bottling Plant at Haridwar at a cost of '16 million. The plant will be run by the largest Gaushala in Uttarakhand and will help maintaining clean hygienic waste management in the Gaushala premises. It will facilitate availability of clean environment to the local population of Haridwar and also help in protecting the fauna i.e. 2200 non-milching cows at Gaushala by way of making the Gaushala self-sustaining from the revenue generated from the project. The plant will also produce organic solid and liquid fertilizers which will be distributed among the local farmers thereby promoting organic farming.

Open Defecation Free Initiative:

As part of Hon'ble Prime Minister's dream to make our country Open Defecation Free, your Company has taken the initiative for construction of Individual Household Latrine across the country in partnership with district administration and other NGOs. More than 21085 IHHL has been constructed in the ONGC operational areas of Gujarat, Tamil Nadu, Jharkhand, Assam and other states of the country at a cost of'846.6 million in the last one year.

Solid Waste Management Project at Rameswaram

With a vision to make the city of Rameswaram clean and Green, “Green Rameswaram” initiative was launched by the Former President ofIndia, Late Dr. A P J Abdul Kalam. Vivekananda Kendra Vidyalaya, Nardep committed itself to turn the vision of the former President into a reality, and started cleaning initiative along with not-for profit organization like Hand In Hand. A Solid Waste Management project was planned by Hand In Hand in four municipal wards of Rameswaram, located around 25 km from Ramnad GCS. The project deliverables include setting up of robust infrastructure for solid waste management, providing vehicles for door to door waste collection, developing and putting in place systems and human resources for ensuring cleaning of roads, drains, collection of garbage and waste, segregation of waste into recyclable and biodegradable categories and processing of the waste in both the categories in a sustainable manner.

Based on the success and the impact of the first phase of the project, the second phase of the project was extended to four wards ofThangachimadam village, which is located around 23 km from Ramnad GCS. An amount of '9.5 million has been sanctioned towards implementing the second phase of the project at Thangachimadam Village Panchayat, along with IEC intervention, in Rameswaram Municipality.

Clean Himalaya Initiative

Your Company is the first Company to have taken the Swachh Bharat Initiative to the Himalayas. The Company partnered with Indian Mountaineering Foundation (IMF) to reach the upper Himalayas where every year tons of harmful garbage was left behind by the visiting tourists. From the mountain peaks of Himachal Pradesh to Uttarakhand, more than 13 cleaning expeditions have been undertaken as part of “Clean Himalaya Initiative” in the last three years. Tons of garbage has been brought down and disposed in an eco-friendly manner. An amount of '8.76 million has been spent towards this initiative.

Initiatives to promote Education, Livelihood and Skill Development At a glance:

-    Project worth Rs,1,320.3 million implemented towards education, livelihood and skill development.

-    Imparted skill development training to 6058 youth and women.

-    Created employment opportunity for 4821 youth & women.

-    Spent more than Rs,192 million towards creating the infrastructure like class rooms, hostels and smart class rooms.

-    Funded for 420 Ekal Vidyalayas in the remote areas of the country.

-    Assistance in the form of Scholarships amounting to Rs,4000/- p.m. to more than 1500 students belonging to SC/ST and BPL families across the country .

Skill Development Institute at Ahmedabad

Skill India is the vision of Hon'ble Prime Minister of India. In line with the Skill India Mission, Ministry of Petroleum and Natural Gas has taken the initiative to set up 6 Skill Development Institutes (SDI) across the country with funding from Oil sector PSEs. Your Company was directed to set up a SDI at Gujarat. The first batch of 90 students has successfully completed their training in 3 different courses in March 2018. All the 90 students were successfully placed in different companies located near Ahmadabad. Considering the success of the first batch, the number of trades will be increased from three to nine from next year onwards benefiting 780 youth. Your Company contributed an amount of '136 million towards setting up these 6 SDIs across India.

Revival of Sanskrit Language

Sanskrit is an ancient Indian language with its origin from Old Indo-Aryan age, having rich literature and text related to science and mathematics unknown to mankind. In order to promote Sanskrit through Training, and to conduct Research on the ancient storehouse of knowledge related to science, mathematics and astrology, Sanskrit Promotion Foundation approached your Company for financial assistance to carry out work for the development of this ancient and rich language, which has been undertaken by the Company as its CSR initiative. The total cost of the project was '57 million in the Phase I, After successful completion of the Phase-I of the project, in September 2017, the Phase- II of the project has been launched from November 2017, for which an amount of '59 million has been sanctioned.

Smart Gram at Daula village of Haryana

Under Smart Gram Initiative of Hon'ble President of India, various villages have been adopted across the country. The model village development at Daula village is one such initiative of Hon'ble President of India. As part of this initiative the Company was given the responsibility of constructing a senior secondary school at Daula village. The 18223 sq ft school building which is currently under construction with funding from the Company will have 12 class rooms, 2 staff rooms, Principal's chamber, three laboratories/Multi-Purpose activity room, library, craft room and a computer room. The total financial implication towards implementing this project is '30 million.

Ekal Vidyalaya

Your Company has partnered with Bharat Lok Shiksha Parishad for reaching remote villages across the country in its operational area for providing free education to children through ‘Ekal Vidyalaya'. This project covers 420 Ekal Vidyalayas, in as many villages of rural, tribal and backward areas in 10 states. With average enrolment of 30 students per school, it is targeted to impart free basic informal education to 24,000 students, with a financial implication of'19 million, for a period of two years.

Skill Development through CIPET:

Two separate projects were undertaken with CIPET for training economically underprivileged youth in plastic technology at Bhubaneswar and Jaipur respectively. A total of 217 youth have been trained in two different courses in tool room mechanic operator and injection molding machine operator. The total cost for both projects is '15 million. After completing 6 months residential training, all 217 youth have been placed at different companies related to plastic engineering thus ensuring 100% placement.

Ekalavya Centre for Organic Agricultural Research and Training:

To realize the Hon'ble Prime Minister's goal of doubling farmers' income by 2022 and reduce the carbon footprint, Ekalavya Foundation (Ekalavya Centre for Organic Agricultural Research and Training) formulated a project to promote organic farming through training and capacity building at Tandur and Vikarabad Mandal ofTelengana. In order to implement this project for setting up the training institute, Ekalavya Foundation approached the Company for financial support. The project will be immensely beneficial for increasing the scope of organic farming in the entire Telangana and other neighboring region. This project will help the farmers and local youth to enhance their livelihood by imparting them employment with enhancing vocation skills. The project is being implemented in one of the most backward mandal in the region inhabited by SCs and STs. It will benefit about 3500 farmers, 200 students and Consumers in general by way of promoting organic farming. Your Company has sanctioned an amount of '47 million for undertaking this project.

Vivekananda Centre for Yoga, Naturopathy and Research: Your Company has extended financial support for setting up a state of the art Yoga, Naturopathy and Research Centre at Jor Bagh, Delhi. The project has been implemented by Vivekananda Yoga Anusandhana Samsthana (VYASA) for which the Company has sanctioned an amount of '60 million. The centre shall render services in preventive health care, disease management, rehabilitation, evaluation, monitoring and research. People can also avail of clinical specialty services in stress and lifestyle, pain, women health, children health, mental health, hair and skin care, etc.

Yoga Theme Garden, Mumbai:

Your Company has provided financial support for development of India's first Yoga theme Park, at Bandra Reclamation, Mumbai. This proj ect is being implemented in partnership with Ravindra Joshi Medical Foundation (RJMF) at a cost of'8 million. The park has been featured as India's first Yoga theme park. It has attractive lawn and vertical gardens. Seven yoga postures have been depicted in the park with visual lighting on vertical green wall. 15 feet tall statue of Yoga Guru Patanjali in Padmasana posture has been installed in the park to motivate people. Besides all these, park has several advance features like rain water harvesting system, irrigation system, LED lighting 20 indigenous native plants have been used to withstand coastal weather. Around 5,00,000 residents residing in the vicinity of the park will directly be benefited from this theme park.

S-VYASA Boys Hostel

Your Company has supported ‘Vivekananda Yoga Anusandhana Samsthana' (VYASA) with financial support of '120 million towards construction of a 350 bed boy's hostel at S-VYASA University campus located at Gidden Halli, Jigani Hobli, Bangalore. The hostel will have all the latest facilities including solar lights, solar heating systems, CCTV, lifts, interior furniture, electrical, etc. Free accommodation will be provided to ST/SC and Tribal students of S-VYASA University whereas deserving poor students will be given 50% concession.

Major Health Care Initiative: At a Glance:

-    Rs,1,308 million worth of projects implemented towards Health Care Initiative.

-    Rs,3,130 million Multi- Speciality Hospital project launched at Sivasagar, Assam.

-    541208 Nos. door step medical treatment provided through Mobile Medical Unit in FY'18.

-    Rs,1,000 million sanctioned towards setting up of National Cancer Institute at Nagpur.

Varisthajana Swasthya Sewa Abhiyan: Doorstep medical treatment for elderly, women and children

This flagship CSR project implemented in partnership with HelpAge India has succeeded in providing door step medical treatments to more than one lakh elderly citizen, women and children through Medical Mobile Unit in remote villages in the operational areas of the Company. The project was initially launched from 2010 to 2016 with 20 MMU's through which more than 1.58 million treatments were provided to the needy population. Based on the impact assessment report of the first phase, Your Company accorded approval for extension of the project till 2019 along with engaging 11 new MMUs. As a result, today 31 MMUs are providing door step medical consultation, treatments and medicines to lakhs of senior citizen, women and children residing in remote corners of our country. The total amount sanctioned towards implementing this project from 2010 to 2019 is '364 million. This project has been successful in providing more than 2.5 million treatments.

National Cancer Institute, Nagpur

The National Cancer Institute at Nagpur, will be 455 bed quaternary care oncology centre. The centre will provide comprehensive cancer treatment, patient care and research through sustainable charity. In addition to providing general cancer care, the institute will also create specialty groups of highly skilled professionals. The institute also plans to start a University recognized training courses for nurses, paramedical staff and medical fraternity including super specialty training in Oncology and PhD programs.

Your Company has extended support of '1,000 million for construction of first, second floor and procurement of medical equipment for radio diagnostic facilities (like MRI, Citi scan, ultrasound, mammography, x-ray and bone marrow density meter, etc.) for the hospital. The equipments have already been commissioned on the ground floor of the hospital and are already being used for investigations of patients. Primary beneficiaries of the project will be patients referred by NGOs, local physicians in and around 500 km radius of Nagpur. It is expected to benefit people from Vidharbha region of Maharashtra, parts of Chhattisgarh, Madhya Pradesh and Andhra Pradesh.

ONGC - MRPL Lady Goschen Hospital, Mangalore

The Lady Goschen Hospital established in 1849, at the heart of Mangalore City is the only hospital in entire Konkon region which provides exclusive pre-natal and post natal care. On an average 500 women are admitted and treated for pre/ post natal care every month. The 167 year old hospital building was in a dilapidated condition and due to increase inflow of patient there was an urgent need for additional facilities. District administration of Mangalore approached the Company for financial support to start a new wing in the hospital campus. Your Company extended financial support of '128 million towards construction of new ‘ONGC-MRPL Wing' for Government Lady Goschen Hospital, Mangalore. The new hospital building is scheduled to be commissioned in 2018.

Rural Development Projects At a glance:

-    Rs,223 million worth of rural development projects undertaken.

-    Undertaken infrastructure development work for two Model Village project Under Sansad Adarsh Gram Yojna at Yigi Kaum village in Arunachal Pradesh and Natun Jelom village, in Assam.

-    Undertaken 67 different projects for strengthening rural roads near ONGC operational areas.

-    8853 Solar street lights sanctioned in 2017-18 for lighting the roads of remote villages across the country.

Model Village Development for Revival of Kor-bong Community at Tripura:

With only 120 surviving population, the Korbong community of Tripura was on the verge of extinction. To save this fast disappearing community, Your Company partnered with Tribal Engineer's Society to develop this village into self-sustained model. As part of this project, permanent infrastructure was developed for community centre, market shed, toilet blocks and irrigation facilities. Also, livelihood opportunities was created for piggery, goatery, fishery, duck rearing, etc. It was a holistic intervention for revival of the Korbong community at a financial implication of Rs,6.5 million.

ONGC Solar Street Lights project:

Your Company has sanctioned 8853 solar street lights worth Rs,177 million for lighting remote villages of the country in the last one year. MNRE recognized partner are empaneled by the Company for installing the solar street lights as per the predefined specifications. These agencies also ensure maintenance of these street lights through AMC .

Development ofMangalajodi, Odisa.

Chilika lake, the largest brackish water lake and a unique bio-diversity of our country attracts millions of migratory birds from across the globe. Mangalajodi, a tiny village located at the backwater of Chilika lake has been the host to these birds. Your Company is in the process of taking up a project with UNESCO to help declare Chilika lake as a World Heritage site. But, prior to taking up the project with UNESCO, the Company has taken up a 360 degree approach to develop Mangalajodi village. Based on need assessment, multiple CSR interventions have been taken up which include open defecation free Initiative by constructing 1300 Individual Household Latrine, lightning the dark alleys of the village by installing 200 Solar lights, creating drinking and portable water facilities, providing 12 nos. of boats to the villagers for creating sustainable livelihood, construction of 40 nos. of school toilets and several livelihood generation and infrastructure development project in the last one year. An amount of Rs,63 million has been sanctioned towards undertaking these projects.

Northeast Vision 2030

In line with Hon'ble Prime Minister's vision for Northeast, Ministry of Petroleum and Natural Gas has released the Hydrocarbon Vision 2030 document for Northeast India in Feb' 2016. The vision document inter alia focuses on the development of the region through CSR initiatives. Your Company having operational presence in the northeast has rolled out major CSR projects in the region. Since, the release of the Vision 2030 document, your Company has incurred an expenditure of '1,522 million towards implementing CSR projects across northeast in different focus areas like Skill Development, Health Care, Education, Swachh Bharat, Environment, Bio-Diversity, etc.

Due importance is given by your Company towards creating Open Defecation Free Village under which more than 11,165 IHHLs have been constructed across 4 district ofAssam at a cost of 134 million. In Arunachal Pradesh, your Company has undertaken many rural Infrastructure development and Health Care projects in the last two years amounting to '78 million. As part of the holistic approach towards skill development, Multi-Purpose Skill Development and Community centres are being set up at Natun Jelom and Halflong at a cost of '13.7 million, besides undertaking skill development training in computer education, welding, gas cutting, video documentation, fruit processing, etc. A documentation centre to preserve the local art, culture and heritage is being set up at Roing in Arunachal Pradesh in partnership with RIWATCH at a cost of '8 million. Hostels and school buildings worth more than '50 million are being constructed for both boys and girls across different remote location of Assam, Arunachal Pradesh and Tripura. The “Yoganilayam” project being undertaken with Seva Bharti Purbanchal will be a hub for promotion of Yoga in northeast. This centre is being set up at Abhoypur in North Guwahati at a cost of '26 million.

One of the major flagship Health Care initiative launched for the benefit of entire population of Upper Assam is the Multi Speciality Hospital project at Sivasagar. This is biggest ever CSR project being undertaken by the Company. After thoroughly analysing the alarming health care scenario of Assam, the Company accorded approval for setting up a 362 bed Multi-Specialty Hospital at Sivasagar to be implemented in three phases, at an estimated cost of '3161 million. The prime objective of the hospital is to provide quality health care services to the people of Northeast at an affordable cost. The charges for treatment will be, as low, as 70% of the market price and further discount of 50% will be provided to economically disadvantaged people. The project will be implemented in three phases, of which an amount of'991 million has already been sanctioned for the first phase, which is scheduled to be completed by July 2019. Some of the other projects being implemented by your Company in Northeast are:

B. Ed. College, Nirjuli:

Your Company is supporting Vivekananda Kendra Vidyalayas Arunachal Pradesh Trust for setting up a B Ed College at Nirjuli for training of teachers. The construction work is in progress and classes have already started in a temporary building. An amount of'59 million has been sanctioned towards implementing this project. The construction of the B Ed College is scheduled to be completed by end of 2018.

Green Hub Project: This is an unique initiative to train 20 youth of North East every year, in wild life videography and documentation. The main objective of the project is to create a team of environment enthusiasts having expertise in conservation. In the last three years 60 youth and women have been trained. The Centre was recently been conferred with Manthan Awards in the category of Environment & Green Energy for leveraging the power of youth to conserve biodiversity through a digital platform. An amount of '6 million has been sanctioned towards implementing this project in the last three years.

Water Hyacinth project for rural women of Sivasagar:

Through this CSR initiative of ONGC, 50 women of Sivasagar district have been trained by NEDFi to develop product from water Hycainth. 20 of these women were further trained by experts from National Institite of Design to make superior products, as per the demand of the market. A facilitation centre has been set up at Nimajan in Sivasagar and a retail outlet has been opened for selling the finished products. The women trained under this program are currently imparting training to others. An amount of '3.3 million has been sanctioned towards implementing this project.

ONGC Super 30:

Your Company has set up a ONGC Super 30 centre at Sivasagar to train 30 aspiring students every year to get admission in IITs and other premier engineering institutes of our country. Total 85 students in three batches have already completed the training since 2014 out of which 18 secured admission in institutes like IIT's and NIT's, 54 got admission in other premier institutes and the remaining 13 students opted for other courses. The fourth batch of 30 students are currently undergoing training at Sivasagar, “ONGC Super 30 centre”. The project is being undertaken in partnership with an NGO Centre for Social Leadership. An amount of '28 million has been sanctioned towards this project since the last four years.

An unique initiative of addressing a grassroot level issue at Baramulla

Indian Army, besides securing the international boarders and ensuring security for the common people of Jammu & Kashmir has been consistently working towards channelizing the energy of the youth towards nation building. In order to support their initiative for empowering the local women and youth of Baramulla, the Company funded skill development programs of Chinar 9 Jawan Club, of Indian Army.

As part of this initiative 120 Kashmiri women from Baramulla and neighbouring areas have been trained in Fashion Designing, Cutting & Sewing at a cost of '3.4 million. Further, through another Skill development program, 150 youth in 'Hospitality' and 150 women in ‘Retail Sales' have been imparted training at a cost of '1.7 million. Out of the total 300 students, trained in Hospitality and Retail Sales, 201 (boys & girls) have already got placement in different industries. Some of them are placed in premier hotels like Taj and Maurya sheraton. These skill development trainings have been imparted through a NGO named REACHA. Prior to these initiatives in Jammu & Kashmir, the Company took the initiative to construct 100 IHHLs in the international border villages of Bobiya, Ladwal and Karol Bidho falling under Mahreen block of Kathua District in Jammu & Kashmir.

At Kalgai Village, near Uri three houses of local residents were devastated while neutralizing four terrorists by the Indian Army. As a result, these families belonging to economically weaker section of the society became homeless overnight. Considering the tough situation under which these villagers were exposed to after devastation of their house, your Company extended financial support for rebuilding of these three houses through the Indian Army. The reconstruction of the three houses was completed in record time of five months. An amount of Rs,1.6 million was sanctioned towards implementing this project.

31.    Accolades

Consistent with the trend in preceding years, your Company, its various operating units and its senior management have been recipients of various awards and recognitions. Details of such accolades is placed at Annexure- ‘C’.

32.    Regulators or Courts order

During the Financial year 2017-18, there is no order or direction of any court or tribunal or regulator which either affects Company's status as a going concern or which significantly affects Company's business operations.

33.    Directors’ Responsibility Statement

Pursuant to the requirement under Section 134(3) (c) of the Companies Act, 2013, with respect to Directors' Responsibility Statement, it is hereby confirmed that:

(i)    In the preparation of the annual accounts, the applicable accounting standards have been followed and there is no material departures from the same;

(ii)    The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit of the Company for the year ended on that date;

(iii)    The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv)    The Directors have prepared the annual accounts of the Company on a ‘going concern' basis;

(v)    The Directors have laid down internal financial controls which are being followed by the Company and that such internal financial controls are adequate and are operating effectively; and

(vi)    The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating.

34.    Corporate Governance

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by various stakeholders. The practices emanate from the need to position multi-layered checks and balances at various levels to ensure transparency of its operations in the decision making process.

In terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, a report on Corporate Governance for the year ended March 31, 2018 along with a certificate from the Company's Statutory Auditors confirming compliance of conditions, forms part of this report.

Your Company has implemented the mandatory Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance to the maximum extent possible.

Your Company has formulated and uploaded the following policies/codes on its website in line with the Companies Act, 2013 and the Listing Regulations:

i.    Code of Conduct for Board Members and Senior Management Personnel;

ii.    Related Party Transactions (revised w.e.f. 09.02.2018);

iii.    Material Subsidiary Policy;

iv.    The Code of Internal Procedures and Conduct for prohibition of insider trading in dealing with the securities of ONGC;

v.    Policy on Materiality for Disclosure of events;

vi.    Corporate Policy on Preservation of Documents and their archiving;

vii.    Policy for Training of Directors;

viii.    Dividend Distribution Policy;

ix.    Fraud Prevention Policy;

x.    CSR and Sustainability Policy; and

xi.    Risk Management Policy.

In line with global practices, your Company has made available all information, required by investors, on the Company's corporate website www.ongcindia.com

In line with the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, your Company has also implemented other measures of Corporate Governance (mandatory/ voluntary) which have been brought out in the Corporate Governance Report and are as follows:

i. Whistle Blower Policy/ Vigil Mechanism: A total of 41 Protected Disclosures till March 31, 2018 have been processed through the Whistle Blower mechanism of your Company which was implemented from December 01, 2009. The Policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is applicable to all employees of the Company and has been uploaded on the intranet of the Company.

In addition, the Company has a full-fledged Vigilance Department, which is headed by Chief Vigilance Officer (CVO) who holds the rank of a Functional Director of the Company. With a view to maintain independence, the CVO reports to the ChiefVigilance Commissioner of the Government of India.

ii.    Enterprise-wide Risk Management (ERM) framework: In line with the requirements of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, your Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM) Policy throughout the organization. The Audit & Ethics Committee periodically reviews the risk assessment and minimization process .

The Risk Management policy of your Company is as follows:

“ONGC shall identify the possible risks associated with its business and commits itself to put in place a Risk Management Framework to address the risk involved on an ongoing basis to ensure achievement of the business objective without any interruptions.

ONGC shall optimize the risks involved by managing their exposure and bringing them in line with the acceptable risk appetite of the Company”

The Board of Directors have constituted a Board Level Risk Management Committee in terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Till date four meetings of the Committee have been held.

iii.    Board and Committee Meetings: - Details of Board and Board Level Committee Meetings are placed under Corporate Governance Report, which form part of this report.

iv.    Meeting of Independent Directors: Three Meetings of Independent Directors were held during FY'18.

v.    Certificate of Independence by Independent Directors: The Independent Directors have submitted declaration that they meet the criteria of Independence as per Section 149(6) of the Companies Act, 2013.

35.    Statutory Disclosures

Your Directors have made necessary disclosures, as required under various provisions of the Act and the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Extract of Annual Return

As per requirement of section 92(3) of the Companies Act, 2013, the extract of the annual return in form MGT-9 is placed at Annexure-D.

Particulars of Employees

Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued there under do not apply in view of the Gazette notification dated 05.06.2015 issued by Government of India, Ministry of Corporate Affairs.

The terms and conditions of the appointment of Functional Directors are subject to the applicable guidelines issued by the Department of Public Enterprises, Government of India. The salary and terms and conditions of the appointment of Company Secretary, a KMP of the Company, is in line with the parameters prescribed by the Government of India.

36.    Energy Conservation

The information required under section 134(3)(m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure - ‘E’.

37.    Audit and Ethics Committee

In compliance with Section 177(8) of the Companies Act, 2013, the details regarding Audit & Ethics Committee is provided under Corporate Governance report which forms part of this Annual Report. There has been no instance where the recommendations of the Audit & Ethics Committee have not been accepted by the Board of Directors.

38.    Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s. Dass Gupta & Associates, New Delhi, M/s. MKPS & Associates, Mumbai, M/s. Lodha & Co., Kolkata, M/s. PKF Sridhar & Santhanam LLP, Chennai, M/s. Khandelwal Jain & Co., Mumbai and M/s. K.C. Mehta & Co., Vadodara, Chartered Accountants were appointed as Joint Statutory Auditors for the financial year 201718. The Statutory Auditors have been paid a total remuneration of '36.55 million (previous year '43.41 million) towards audit fees, certification and other services. The above fees are inclusive of applicable service tax / GST but exclusive of re-imbursement of travelling and out of pocket expenses actually incurred.

39.    Auditors’ Report on the Accounts

The comments of Comptroller & Auditor General of India (C&AG) form part of this Report and is attached Annexure ‘F’. There is no qualification in the Auditors Report on the Financial Statements of the Company.

40.    Secretarial Audit

In terms of Section 204(1) of the Companies Act, 2013, the Company has engaged M/s P P Agarwal & Co., Company Secretaries in whole-time practice, as Secretarial Auditors for conducting Secretarial Compliance Audit for the financial year ended March 31, 2018. Their report has been annexed to the Corporate Governance Report.

41.    Cost Audit

Six firms of Cost Accountants were appointed as Cost Auditors for auditing the cost records of your Company for the year ended March 31, 2018 by the Board of Directors. The Cost Audit Report for the year 2016-17 has been filed under XBRL mode on September 11, 2017 which was well within the due date of filing.

Further, the required cost records as specified under the Companies Act, 2013 are prepared and maintained by the Company.

42.    Directors

Policy for Selection and appointment of Directors’ and their remuneration.

Your Company being a Government Company, the provisions of Section 134(3) (e) of the Companies Act, 2013 do not apply in view of the Gazette notification dated June 05, 2015 issued by Government of India, Ministry of Corporate Affairs.

Performance Evaluation

The provisions of Section 134(3) (p) of the Companies Act, 2013 relating to evaluation of Board/ Directors do not apply to your Company since necessary exemptions are provided to all government companies. The Company being a Government Company, the provisions relating to Performance Evaluation of Directors stand exempted. The proposal for similar exemption under the Listing Regulations is under the consideration of the SEBI.

Appointments / Cessation etc.

Since the 24^th Annual General Meeting held on September 27, 2017, Smt. Ganga Murthy and Shri Sambit Patra were inducted as Independent Director(s) of the Company with effect from September 23, 2017 and October 28, 2017 respectively.

Shri Dinesh Kumar Sarraf, Chairman & Managing Director, superannuated from the services of the Company on September 30, 2017. The Board places on record its appreciation for his contribution during his tenure. Shri Shashi Shanker, has been appointed as the Chairman & Managing Director of the Company w.e.f. October 01, 2017, who was earlier appointed as Director (Technical & Field Services).

Shri Adapa Krishnarao Srinivasan, has ceased to be the Director (Finance) and CFO of the Company due to superannuation on October 31, 2017. The Board places on record its appreciation for his contribution during his tenure. Shri Subhash Kumar, has been appointed as Director (Finance) and CFO of the Company w.e.f January 31, 2018.

Shri Tapas Kumar Sengupta, Director (Offshore) has ceased to be the Director (Offshore) of the Company due to superannuation on December 31, 2017. The Board places on record its appreciation for his contribution during his tenure. Shri Rajesh Kakkar, has been appointed as the Director (Offshore) of the Company w.e.f. February 19, 2018.

Shri Ved Prakash Mahawar, has ceased to be the Director (Onshore) of the Company due to superannuation on February 28, 2018. The Board places on record its appreciation for his contribution during his tenure. Sanjay Kumar Moitra, has been appointed as the Director (Onshore) of the Company w.e.f. April 18, 2018.

Shri Desh Deepak Misra has ceased to be Director (HR) of the Company due to superannuation on June 30. 2018. The Board places on record its appreciation for his contribution during his tenure.

The strength of the Board of Directors of the Company as on March 31, 2018 was 16 comprising 5 Executive Directors (Functional Directors including CMD) and 11 Non-Executive Directors including two Government nominees and Nine Independent Directors. Though there were two vacancies for two Executive Directors, the composition of the Board complied with the requirements under the provisions of Companies Act, 2013 as well as of Listing Regulations, 2015.

43. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Statutory Auditors, Cost Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and all members of  the ONGC Family for their faith, trust and confidence reposed in the Board.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

                                                                              On behalf of the Board of Directors

                                                                                 Sd/-

New Delhi                                                               (Shashi Shanker)

02.08.2018                                                                Chairman and Managing Director

---

Mar 31, 2017

Dear Shareholders, The, on behalf of the Board of Directors of your Company, am pleased to share with you the achievements and highlights of your Company during the financial year ended March 31, 2017 and to present the 24th Annual Report on the business and operations of Oil and Natural Gas Corporation Ltd. (ONGC) and its Audited Financial Statements with the Auditors' Report and Comments on the Accounts by the Comptroller and Auditor General (CAG) of India and the reply of the management thereto. The challenges that marked the macro environment, viz. low commodity prices, uncertain demand outlook and slow global economic recovery, in FY'16 persisted in FY'17 as well. Crude prices today are distinctly higher than they were in early 2016. However, it would be prudent for oil and gas companies to remain wary as the recovery has not been as robust and stable as one would have liked it to be. It is reflective of the larger economic environment of the world where secular growth has not returned to the markets post the global financial meltdown and the subsequent Eurozone slowdown. While this extended period of low commodity prices poses challenges for E&P companies in terms of ambitious exploratory efforts and development from difficult areas, it is a source of meaningful monetary comfort for an import dependent economy likes ours. That being said, price-related pressures are likely to ease going forward as companies learn to adapt and improvise in this 'new normal' of low prices. We must not forget that our industry has faced numerous challenges in the past and has always come out stronger each time. This 'new normal' will also be defined and influenced by the international political developments in the past one year and the remarkable growth (both in terms of investment as well as capacity addition) of renewable energy sources, adding a further layer of complexity to the operating environment of oil and gas. In this prevailing environment of increased volatility and uncertainty, it has become more important than ever for companies to sharpen their focus on promising growth avenues while consolidating their key areas of strength. For your Company, it meant a more aggressive approach to cost optimization and operational efficiencies in our legacy business and stepping up activity in the area of unmonetized discoveries with comprehensive planning and robust project management philosophy. Considering the critical importance of your Company in the country's overall energy infrastructure, the decisions and actions of today will, to a large extent, not only set the ground for a significant transformation that will enable it to contribute even more expansively to the country's energy sector but also ensure its competitiveness in any operating environment. Despite the challenges of the business and its surrounding environment, your Company along with its group companies has registered yet another year of strong performance and made substantial progress on most of these priority areas. In addition, performance in the other areas of business where your Company has significant interests also recorded important milestones. Backed by an intensive and continuous exploration programme, your Company made 23 oil and gas discoveries in various basins of India out of which eight discoveries have already been monetized. During the year, your Company produced 22.25 MMT ofoil against 22.37 MMT during FY'16. Natural gas production was at 22.09 BCM against 21.18 BCM during FY'16, thereby recording an increase of 4%. Your Company's share in domestic joint ventures' production has been 3.28 MMT of oil and 1.18 BCM of gas. Combining the two, total domestic production has been 25.53 MMT of oil and 23.27 BCM of gas. VAP production increased from 2.77 MMT in FY'16 to 3.24 MMT in FY'17 (increase of 17%) with contribution from C2-C3 and Hazira plants. All joint ventures of your Company established for value-chain integration i.e.,- ONGC Petro-additions Ltd. (OPaL), ONGC Teri Biotech Ltd. (OTBL), ONGC Tripura Power Company Ltd., (OTPC), Petronet MHB Ltd. (PMHBL), Dahej SEZ Ltd. (DSEZ) and Mangalore SEZ Ltd. (MSEZ) are now operational and have started generating revenue. The significant milestones achieved by your Company during 2016-17: - Your Company made 23 Oil and Gas discoveries out of which 13 were Onshore and 10 were Offshore. 4 of these discoveries are in New Exploration and Licencing Policy (NELP) blocks. Focusing on quick monetization, 8 of these discoveries have already been put to production. - With these 23 discoveries, your Company accreted 64.32 MMtoe of 2P reserves in the domestic fields. RRR with 2P reserves during the year has been 1.45. - With Jabera discovery, Vindhayan Basin has made entry into the oil reserves map of India. - With recent discoveries in Kutch offshore, focus is on bringing this new basin on production. - Your Company has taken up development of KG-DWN-98/2 block in Krishna-Godavari (KG) Basin with an investment of more than US$ 5,000 million (approx. Rs.340,000 million). Peak oil from the field is around 78,000 bpd and gas @ 15.57 MMSCMD. - Gas production commenced from S1 Deep Water field (water depth around 280M) in KG Basin @ 0.9 MMSCMD and the first Deep Water gas well to fetch a price of US$ 5.05 per MMBTU under government approved pricing and market freedom policy. - Gas sales increased from 16.08 BCM in FY'16 to 17.06 BCM in FY'17; an increase of 5.80 %. - Your Company deployed 35 rigs in offshore, the highest ever and drilled 501 wells again the highest ever (401 development wells, the highest ever). Commercial speed during the year has been 1,472; an increase of more than 24% compared to 2015-16. - Testing the efficacy of B-90 culture in the wells of Becharaji field Microbial Enhanced Oil Recovery (MEOR) job was carried out in 3 wells of Bechraji in 2016-17. - Gas flaring during the year has been 529 MMSCM which reduced from 3.06% (FY'16) to 2.40% (FY'17); a reduction of21.6% over the previous year. - Additional development of Vasai (East): facility creation (2 well platforms and Subsea pipeline) completed. 12 wells out of 20 wells drilled and added additional oil production of 7000 BOPD. - Besides 28 ongoing oil and gas development projects, 6 development projects worth Rs.76,700 million have been taken up during FY'17. The projects are NW B-173A, B -147, BSE-11, 4th phase of NBP Field and R-Series and redevelopment of Santhal field. - Your Company signed Farm-in/Farm-out (FIFO) agreement with GSPC on 10th March, 2017 to acquire 80% PI with operatorship in block KG-OSN-2001/3. - Commencement of Coal Bed Methane (CBM) field development operations in Bokaro and North Karanpura. - Gross Revenue of the Company stood at Rs.779,078 million and for ONGC Group it has been Rs.1,421,490 million. - Your Company recorded a Net Profit of Rs.179, 000 million during the year under review. Net Profit of ONGC Group increased by 59% to Rs.204, 979 million (Rs.128, 752 million in FY'16). - ONGC Videsh Limited (OVL), a wholly owned subsidiary of your Company, registered highest-ever production of 12.80 MMtoe of O+OEG during the year. It recorded Gross Revenue of '100,800 million and Net Profit of Rs.6,974 million (against loss of Rs.36,401 million in FY'16). - Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of your Company, recorded highest-ever throughput of 16.27 MMT during FY'17. - MRPL recorded 17% increase in Turnover to Rs.599,801 million (Rs.509, 623 million during FY'16) and highest ever Net Profit of Rs.32,932 million (Rs.5,058 million in FY'16). - ONGC Tripura Power Company Ltd. (OTPC) clocked highest-ever Annual Gross Generation of 4,170 million units. - Six ONGC team members successfully accomplished Mission Everest. This is first time that a Corporate has taken a Mission to send its team to mount the highest peak of the Earth. These achievements reflect your Company's proven commitment towards sustained growth and performance excellence. Consistently driven by well-defined growth strategies, your Company delivers and improves performance year-on-year basis which is the benchmark of excellence in various facets of E&P activities and has also been well recognized through peer-and-public evaluations. Global Recognitions Your Company has been ranked number one E&P Company in the world by Platts Top 250 Global Energy Company Rankings-2016 and 20th among global energy majors based on assets, revenues, profits and Return on Invested Capital. The leading international business journal Forbes has ranked ONGC the 3rd largest in India and 220th worldwide based on sales, profit, assets and market value. Your Company has strengthened its brand position in India, climbing from 10th position during previous year to 7th position, according to a study conducted by consultant Brand Finance. Further, the Rs.2016 EU Industrial R&D Scoreboard' listed your Company at the 12th position in the list of oil and gas companies based on Research and Development (R&D) expenditure. Performance 2016-17 During FY'17, your Company made 23 Oil & Gas discoveries out of which 13 were Onland and 10 were Offshore including 4 discoveries in the blocks awarded under NELP. All these 23 discoveries are healthy pointers to the continued performance of the Company's exploratory efforts. Details of these discoveries are tabulated as below: Sl. No. Well No. Basin/Sub-basin Hydrocarbon Type Pool/ Prospect NELP/ Nomination 1 KGS092NA-SRI-1/SRI-AA Krishna Godavari (KG Offshore-SW) Basin Oil & Gas Prospect NELP 2 B-34-2/B-34-B Mumbai Offshore Basin Oil & Gas Prospect PML 3 Suphayam-2/S UA A Assam Shelf Basin Oil & Gas Prospect PEL 4 Jabera-4/RJBF Vindhyan Basin Gas Prospect PML 5 Dayalpur-1/SUAB Assam Shelf Basin Oil & Gas Prospect PML 6 B-157N-1/B-157N-A Mumbai Offshore Basin Oil & Gas Prospect PML 7 GS-71-1/GS-71-AA Krishna Godavari (KG Offshore-SW) Basin Oil & Gas Prospect PML 8 B-154N-1/B-154N-A Mumbai Offshore Basin Oil & Gas Prospect PML 9 South Akholjuni/Akholjuni-29/ AKAP Cambay Onland Basin Oil & Gas Prospect PML 10 D-30-2/ D-30-A Mumbai Offshore Basin Oil & Gas Prospect PML 11 G-1-N-2 / G-1-N-AB Krishna Godavari (KG Offshore-SW) Basin Oil & Gas Prospect PML 12 GKS101NCA-1/GKS101NCA-A Kutch Offshore Basin Oil & Gas Prospect NELP 13 MBS051NAA-2/NAA-B Saurashtra Offshore Basin Gas & Condensate Pool NELP 14 Dahej/Dahej-20/DJAT Cambay Onland Basin Gas Pool PML 15 Nambar/Nambar-12/NRAF Assam Shelf Basin Gas Pool PML 16 Nadiad/ Nadiad-4/NDDA Cambay Onland Basin Oil Pool PML (NELP) 17 Kesanapalli / Kesanapalli West Deep -1 /KWD-AA Krishna Godavari Onland Basin Oil & Gas Pool PML 18 West Penugonda/ Thurupu Vipparu-1 / TVAA Krishna Godavari Onland Basin Gas Pool PML 19 B-12C / B-12C-2 / B-12C-A Mumbai Offshore Basin Gas & Condensate Pool PML 20 Geleki / G-390 / GKHX Assam Shelf Basin, Oil Pool PML 21 Khoraghat / Khoraghat-38 Z / KHBB_Z Assam Shelf Basin Oil & Gas Pool PML 22 Olpad/Olpad-47/OPAM Cambay Onland Basin Gas Pool PML 23 Gandhar-724(GGAM) Cambay Onland Basin Oil Pool PML The significant discoveries are - Kesanapalli West (KG Basin), Suphayam and Dayalpur (Upper Assam). Supahyan and Dayalpur have opened up new exploration targets by establishing multilayered hydrocarbon occurrence. With Jabera discovery, your Company brought Bindhayan Basin onto the oil reserve map of India. With these 23 discoveries, your Company accreted 64.32 MMtoe of 2P reserves in the domestic fields. Discoveries put on production Dahej-20, Gujarat Suphayam-2, Jorhat Akholjuni-29, Gujarat Dayalpu r-1, Jorhat Gandhar-724, Gujarat Geleki-390, Assam Nambar-12, Jorhat Kesanapalli-West, AP In KG Offshore, two new oil finds, each one in shallow water (GS-71) and deep water (G-1-N) have produced much encouraging results during initial production testing. 8 out of 13 onshore discoveries have already been put on production during FY'17 itself. The ultimate reserve of 8 monetized discoveries is 3.4 MMtoe and has production potential of 0.218 MMtoe of O+OEG per year. Re-assessment of Hydrocarbon Resources Government of India (GoI) initiative for “Re-assessment of Hydrocarbon Resources” in Indian sedimentary basins has been undertaken by your Company. About 100 geoscientists of ONGC, in 12 working teams, are on the job. These studies are ongoing in 26 different basins -onshore, shallow water, deepwater. The project is expected to be completed by Nov'17. National Seismic Programme Your Company has been actively associated with National Seismic Programme (NSP), initiated by Government of India under which 48% of unappraised sedimentary in onland area is being covered through seismic survey. Out of proposed acquisition, processing and interpretation (API) of 48,243 LKM of onland data, your Company will be taking up API of 40,835 LKM in all states other than North East (NE). Details of discoveries in NELP blocks (since inception till 01.04.2017) Out of the 114 NELP blocks awarded to/acquired by your Company, as the operator, 32 blocks are operated presently and the remaining 82 blocks are relinquished so far. Exploration/ appraisal programme is under way in all the active blocks. As on 01.04.2017, your Company has a total of 64 discoveries, out of these, 58 discoveries (18 in deep water, 21 in shallow water and 19 in onland areas) are in 25 NELP blocks and the remaining 6 discoveries (4 deep water, 2 onland) fall under two blocks acquired from other operators. Commencement of production from these discoveries is governed by stipulation laid down in the respective Production Sharing Contracts (PSCs) and will be taken up after successful completion ofappraisal programme followed by submission of Declaration of Commerciality (DoC) and approval of Field Development Plan (FDP) by Directorate of Hydro Carbon (DHC). Reserve accretion & Reserve Replacement Ratio (RRR) During the year, accretion to in-place Hydrocarbons (3P-Proved, Probable and Possible), from the Company operated fields in India, has been 203.24 million metric tonnes (MMT) of Oil and Oil equivalent Gas (O+OEG), out ofwhich about 87 percent accretion has been due to exploratory efforts. Reserve Replacement Ratio (RRR) during the year has been 1.45. Total in-place reserve accretion during 2016-17 in domestic basins, including the Company's share in PSC JVs, stands at 210.61 MMtoe (7.37 MMtoe from JVs). As on 01.04.2017, total in-place hydrocarbon volume of ONGC group stands at 9,655.36 MMtoe against 9,444.74 MMtoe as on 01.04.2016. The ultimate reserves (3P) have been estimated at 3,132.35 MMtoe as against 3,075.51 during the FY'16. Voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69) have been followed in your Company. The following table gives the details of reserve accretion (2P-Proved and Probable) for the last 5 years in domestic basins as well as from the overseas assets: Ultimate Reserve (2P) accretion O+OEG (in MMtoe) Year Domestic Assets (1) ONGC's share in domestic JVs (2) Total Domestic (3)=(l)+(2) ONGC Videsh's Share in Foreign Assets (4) Total (5)=(3)+(4) 2012-13 67.59 4.23 71.82 10.09 81.91 2013-14 56.26 4.29 60.55 213.24 273.79 2014-15 61.06 -1.03 60.03 20.03 80.06 2015-16 65.58 0.80 66.38 -7.22 59.16 2016-17 64.32 0.22 64.54 120.28 184.82 Note: Reserve accretion reported in terms of 2P reserves Statement of Reserve Recognition Accounting (RRA) Reserve Recognition Accounting (RRA) is a voluntary disclosure towards recognizing income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization engaged in exploration and production of hydrocarbons with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee of the Company. As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises in USA that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information: a) Proved Oil and Gas reserve quantities b) Capitalized costs relating to Oil and Gas producing activities c) Cost incurred for property acquisition, exploration and development activities d) Results of operations for Oil and Gas producing activities e) A standardized measure of discounted future net cash flows relating to proved Oil and Gas reserves quantities Your Company has disclosed information in respect of (a) to (d) above in the Annual Financial Statements. Your Company has also made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserves at Annexure-A' to this report as statement of RRA. Oil & Gas Production On standlone basis, in FY'17 the Company's domestic crude oil production level registered at 22.25 MMT against 22.37 MMT in FY'16. Oil production from onshore assets increased by 2.4% while offhore registered a decline of 1.6%. Increase in onshore oil production has been mainly due to various initiatives and early monetization of discoveries in Ankleshwar, Cauvery (Madnam) and Rajahmundry (Keshnapalli West), etc. Domestic PSC JVs contributed 3.31 MMT of oil against 3.56 during FY'16. Natural gas production (from domestic operated fields) during FY'17 has been 4% higher than the previous year (22.09 BCM against 21.18 during FY'16). The Company's onshore gas production increased by healthy 9.1% where as offshore production increased by 2.9%. Onshore gas production increased mainly due to commissioning of GDUs in Rajahmundry, drilling of development wells and commissiong of Sonamura GCS in Tripura and GS-4 well in Gandhar. Incremental gas production in offshore was contributed by C-26 cluster/Daman fields in Western Offshore and Deep Water well S2AB in Eastern Offshore. Further most ofAssets registered increase in gas production during the year. Your Company's share in oil and gas production from PSC JVs has been 3.29 MMT and 1.18 BCM respectively. Oil & Gas production of ONGC Group, including PSC-JVs and from overseas assets for FY'17 has been 61.60 MMtoe (against 57.38 MMtoe during FY'16); an increase of 7.4%. Out of the total production of 33.96 MMT of crude oil, 65.5 per cent production came from the Company operated domestic fields, 24.8 per cent from the overseas assets and balance 9.7 per cent from domestic joint ventures. As far as natural gas production is concerned, majority of production (79.9 per cent) came from the Company operated domestic fields, 15.8 per cent from overseas assets and 4.3 per cent from domestic joint ventures. Unit Production Qty Sales Qty Value (Rs. in millions) FY'17 FY'16 FY'17 FY'16 FY'17 FY'16 Direct Crude Oil (MMT) 25.53 25.93 23.86 24.15 548,036 511,316 Natural Gas (BCM) 23.27 22.53 17.94 17.10 139,398 182,239 Ethane/Propane 000 MT 420 375 420 375 8,557 8,945 Propane 000 MT 90 29 87 26 2,223 496 Ethane 000 MT 137 - 135 - 5,354 - Butane 000 MT 31 - 30 - 1,131 - LPG 000 MT 1355 1195 1352 1191 37,276 34,951 Naphtha 000 MT 1101 1043 1087 1065 30,455 30,609 SKO 000 MT 36 67 42 66 1,321 2,118 Others 1,113 894 Sub Total 774,864 771,568 Trading Motor Spirit 000 KL 0.21 0.68 11 35 HSD 000 KL 0.43 1.16 20 49 Sub Total 31 84 Total 774,895 771,652

Production from Overseas Assets During the year total production from overseas assets has been 12.80 MMtoe of O+OEG (Oil: 8.43 MMT; Gas 4.37 BCM) against 8.92 MMtoe during FY'16; an increase of 43% mainly due to incremental production from Sakhalin-1 (Russia) and additional production on account of acquiring 26% share acquisition in Vankorneft. Russia (56%), Vietnam (12%), Azerbaijan (7%), and Myanmar (7%) contribute 82% of equity oil and gas followed by Brazil (5%), Venezuela (4.9%), Colombia (4.3%) and Sudan (3.8%). Technology Induction/Upgradation Your Company gives utmost importance for induction and upgradation of technology in various areas of its operations to remain competitive. During the year the following technology were inducted: - Suitable polymer squeezing technology to arrest sudden rise in water cut in North Kadi field of Mehsana Asset - Job execution in 8 No. ofwells done - Deep Penetrating Retarded Acid System (DPRAS) & Self Diverting Acid Stimulation technology for wells of NBP & other fields of Mumbai Offshore -job execution in 30 No. of wells done - Technology for deliquification for reviving production from gas wells of Ahmedabad Asset. The same is implemented in 2 No. of wells - Resource optimization through Batch Drilling in Offshore & Pad Drilling in onshore - Under Balanced Drilling - Technology penetration in onshore drilling at par with offshore - Use of Advanced Hybrid bits Exploration of different hydrocarbon (a) Basement Exploration: Concerted efforts for Basement Exploration, a frontier exploration play, have been taken up by the Company as a major initiative. The prospects achieved success in Mumbai Offshore, Kutch offshore, Cambay, Cauvery and A&AA Basin have further enhanced the scope of basement exploration. During the year, Basement fracture modeling and prospectivity analysis are also in progress in Assam & Arakan, Cauvery and KG and Kutch Offshore and West of Mumbai High Area of Western Offshore basins. Fracture model developed for Madnam field has been validated by Production Logging Tool (PLT) logs recorded in well MD-3 Sub and MD-7. Further, 7 exploratory wells and 8 development wells were drilled in different basins for basement prospect. In A&AA Basin, exploratory well SU-3 flowed 3.5-7.2 m3/day oil with 11000 m3/day gas from basement during production testing. B-121-8 in Western Offshore Basin flowed oil @200 Barrels/day through %” choke, well BH-75 gave oil indications from basement during testing and another well N-24-5 in Mumbai High Field flowed oil at 190 barrels/day from Basaltic Basement. In Cauvery basin development well MD-3 Sidetrack, MD-7, MD-8 and MD-9 have flown oil from basement. In Madnam field cumulative oil gain is around 300 m3/day from basement. For the development of discoveries in basement play, FDP approval has been obtained for Madanam Field and plan is under implementation. PML of Madanam field has been granted by GoI and grant from state government is awaited. FDP of Pandanallur Field, which also has basement play, has been submitted to DGH for approval. (b) Exploration in HP-HT & Tight Reservoir: Fields/Reservoirs with a sub-surface pressure of more than 10,000 psi and temperature of more than 350°F are classified as HP-HT reservoirs. The Company has prioritized HP-HT/Tight/Deeper plays in KG, Cauvery, Western Offshore Basin and Assam & Arakan Fold belt where such environment have been encountered during exploration for deeper pays. These plays have been an exploration challenge for drilling as well as for testing. In addition, your Company after acquiring the operatorship of NELP block KG-ONN-2003/1 has submitted the FDP of two discoveries made in the block. Further, hiring desired technological support/ services from domain consultants and service providers are explored to maximize established/potential for monetization. An action plan has been prepared for monetization of 3 HPHT Fields - Nagayalanka, Periyakudi and Bantumilli South and first production from these efforts is likely to commence in 2017. Unconventional & Alternate sources of energy Your Company plans to continue its endeavor for exploration and development of unconventional like - Shale (CBM) etc. and alternate sources of energy. Necessary action plan is being worked out for exploration and exploitation of Non-Conventional and Alternate Sources of energy which has been perceived as the future sources of energy. The initiatives towards this are summarized below: (a) Shale Gas/Oil Exploration: Exploration for assessing the Shale gas/oil prospectivity has been initiated in 4 basins of the country viz., Cambay, KG, Cauvery and A&AA Basins as per the policy guidelines notified by Government of India (GoI) for exploration and exploitation of shale gas and oil by National Oil Companies (NOCs), your Company has identified 50 nomination PML (Petroleum Mining Lease) blocks under Phase-I. As on 31.03.2017, 22 assessment wells (5 exclusive shale gas in Cambay basin and 17 dual objective wells) in 19 PML blocks have been drilled and required data are being generated/ evaluated for Shale gas/oil assessment. During the year, 4 dual objective wells in Cambay basin have been drilled. Laboratory studies of core and cutting samples collected in wells during the current year are in different stages of completion. A second zone in well JMSGA (JM#55) (instead of well number field/block may be mentioned) has also been hydro-fractured (HF) and indication of oil was observed during post-HF activation. Cumulative oil knocked out till 21.03.2017 was 2.35 m3. The well has been put on Gas Lift Value (GLV) for effective activation. Earlier, the well cumulatively flowed 19 m3 of oil with gas and about 173 m3 of flow back water from first zone. (b) Coal Bed Methane (CBM): The Government of India awarded total 33 blocks to various operators through four rounds of bidding and nomination. Out of these, your Company was awarded 9 CBM Blocks. Due to poor CBM potential, concluded on the basis of data generated in the exploratory activities, five blocks viz. Satpura (Madhya Pradesh), Wardha (Maharashtra), Barmer-Sanchor (Rajasthan), North Karanpura (West) and South Karanpura ( Jharkhand) have been relinquished. (c) Gas Hydrate Exploration: Your Company has been an active participant in the National Gas Hydrate Programmes (NGHPs). Towards this, Gas Hydrate Research & Technology Centre (GHRTC) was established on 14th September, 2016 at Panvel. The Centre would give impetus to the Gas Hydrate research & technology development and contribute to GOI's plan to commercialize Gas Hydrates as energy resource at the earliest. (d) Alternate sources of energy For harnessing alternate sources of energy, your Company took structured initiatives. - The contract for installation of a 10 MW Solar Plant at Hazira was awarded in 2016-17. The Notification of Award (NOA) was placed on 23.02.17 with scheduled completion period as seven months from NOA - One 40 KW Roof Top Solar Power plant at KV Hazira was commissioned in 2016-17(06.03.17). Another three 20 KW Roof Top Solar Power plants were installed in Ahmedabad at IRS, Logging Section and Fire Station in December 2016. Oil & Gas Projects (a) Projects completed during FY'17 Sl. No. Name of the Projects Completion/ Commencement of Production Total Investment (Rs. in Million) Envisaged Oil & Gas Gain 1. Additional Development of Vasai East May, 2016 24,768 1.827 MMT of oil and 1.971 BCM of gas by 2029-30 2. Improved Oil Recovery of B-173A Field December, 2016 3,525 0.567 MMT of oil and 0.071 BCM of gas by 2025-26 3. Reconstruction of BPA & BPB Platforms March, 2017 11,385 - 4. Construction of 6 ETPs, Five at Ahmedabad and One at Ankleshwar March, 2017 3,176.4 - Total 42,854.4 (b) Projects initiated during FY'17 The following 6 development projects were taken up. Sl. No. Name of the Projects Estimated Cost (Rs. in Million) Incremental Oil & Gas Gain 1. NW B-173A Development Plan for Exploitation of Mukta pay - NW B-173A Field 4741.5 0.760 MMT of oil and 0.213 BCM of gas respectively by the year 2031-32. 2. 4th Phase Development of NBP field 9,686.1 2.08 MMT of oil by the year 2031-32. 3. Development of BSE-11 Block 5,113.0 0.20 MMT of oil, 0.37 MMT of condensate and 0.568 BCM of gas by 2030-31 4. Development of B-147 field 5,461.5 0.489 MMT of oil and 0.708 BCM of gas by year 2029-30 5. Development of R-series fields including revival of R-12 (Ratna) 40,068.3 7.03 MMT of oil and 0.881 BCM of gas by the year 2035-36 6. Redevelopment of Santhal field 11,625.6 3.44 MMT by the year 2029-30 Total 76,696.0 (c) Implementation of IOR/Redevelopment Schemes To arrest the decline and improve recovery factor from mature fields, your company has successfully implemented several IOR schemes to sustain/augment oil & gas production from major offshore producing fields -Mumbai High, Heera & Neelam since year 2000-01. To further improve the recovery from the matured fields, three major IOR Projects were initiated during the FY' 14-15 and 15-16 and are as under: - Two IOR Projects were initiated in FY 15 viz. “Mumbai High North Redevelopment Phase-III Project with an investment of Rs.58,132.5 Milliion envisaging 6.997 MMT of oil and 5.253 BCM of gas by 2030 and Mumbai High South Redevelopment Phase-III Project with an investment of Rs.60688 Million envisaging 7.547 MMT oil and 3.864 BCM gas by 2030. Production has commenced on both the above projects. - One IOR projects was initiated in FY 1516 i.e. “Neelam Redevelopment Plan for Exploitation of Bassein and Mukta pay of Neelam field” with an investment of Rs.28188.8 Million. The project envisages incremental production of 2.76 MMT of oil and 4.786 BCM of gas by year 2034-35. (d) Fast track monetization ofMarginal Fields Your Company is developing new and marginal fields in fast track to augment the oil and gas production. It is pertinent to mention here that many marginal fields in western offshore which were not techno-economically viable for exploitation earlier on standalone basis are now being developed with cluster concept. Some of the marginal fields put on production in the last few years include NBP (D-1) with its additional development/ development of lower Pays, Vasai West, Vasai East with its additional development, North Tapti, BHE , SB-14, B-46 Cluster fields, C-24 cluster fields, B-22 Cluster fields, B-193 cluster fields, Cluster-7 fields and WO-16 cluster fields. In addition, production has commenced from “Development ofC-26 Cluster Fields” and “Daman Development” projects in 2016-17 and would contribute further with drilling of more wells under these projects. Monetization of marginal fields under B-127 cluster is under implementation and would contribute in the coming years. (e) Development of fields in Eastern Offshore Major thrust is being given to develop discoveries made in the Krishna Godavari basin which is a promising basin with various discoveries like G1/GS-15, Vasishtha, S1, GS-29 and KG-DWN-98/2, etc. Presently “Integrated Development of Vasistha & S-1 Fields” is under implementation and is aimed to contribute 15.95 BCM of gas by year 2026. The production has commenced from deep water well S2AB under this project from May 2016 utilizing the existing G1 field facilities and remaining wells are under drilling and would contribute in coming years. Further, to boost up oil and gas production from Eastern Offshore, one mega project for development of cluster 2 fields of NELP Block KG-DWN-98/2 was initiated in March 2016. The project is under implementation and envisages production of 23.526 MMT of oil and 50.7 BCM of gas by 2034-35. Development of other discoveries in KG offshore such as KG-DWN-98/2 (Cluster-I & III fields), GS-49 and GS-29, G-4-6 fields, shallow water NELP block KG-OSN-2004/1, etc. are under various stages of appraisal/approval for development. In addition to above initiatives, after the decision of Government of India to revert Ratna and R-Series fields in Western Offshore to the Company, Project “Development of R-series fields including revival of R-12 (Ratna)” has recently been initiated, which envisages incremental production of 7.03 MMt of oil and 0.881 BCM of gas by the year 2035-36. 1. Financial Results The Ministry of Corporate Affairs (MCA), vide its notification in its official gazette dated 16th February 2015, notified Indian Accounting Standards (Ind AS) applicable to certain class of Companies. Ind AS has replaced the existing Indian GAAP prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies Accounts Rules, 2014. For ONGC, your company, Ind AS is applicable from April 1, 2016 with a transition date of April 1, 2015 and IGAAP as its previous GAAP. The following are the areas which had an impact on account of transition to Ind AS: - Fair valuation of certain financial instruments - Discounting of certain long term provisions like decommissioning provision - Valuation of loans by Effective Interest rate method - Accounting for proposed dividend - Deferred tax on the above adjustments - Valuation of equity instruments through other Comprehensive income The reconciliations and descriptions of the effect of the transition from IGAAP to Ind AS have been provided in notes to account at note 56 in the Standalone Financial Statements. Despite volatility in the crude oil prices and reduction in natural gas prices during 2016-17, your Company has registered Gross revenue of Rs.779,078 million and earned a Profit After Tax (PAT) of Rs.179,000 million, up by 10.91% over FY'16 (Rs.161,399 million). (Rs. in million) Particulars 2016-17 2015-16 Revenue from Operations 779,078 777,417 Other Income 75,481 70,094 Total Revenues 854,559 847,511 Profit Before Interest Depreciation & Tax (PBIDT) 386,266 392,495 Profit Before Tax (PBT) 252,155 235,988 Profit After Tax (PAT) 179,000 161,399 Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014, a separate statement containing the salient features of the financial statement of its subsidiaries, associate company and joint venture in Form AOC-1, is appended to this report, which shall form part of the Financial Statements. 2. Dividend Your company paid first interim dividend of Rs.4.50 per share of Rs.5 each (90%) which was pre-bonus. Second interim dividend of Rs.2.25 per share (45%) was post- bonus. The Board of Directors have recommended a final dividend of Rs.0.80 per share (16%) post bonus. This makes the aggregate dividend at Rs.9.075 per share (181.5%) before considering bonus as compared to 170% paid in 2015-16. The total dividend for 2016-17 will be Rs.77,641 million, besides Rs.15,789 million as tax on dividend amounting to 52.20% of PAT (inclusive of dividend tax). There was delay in remittance of unpaid dividend aggregating Rs.13.79 million to Invest Education and Protection Fund due to technical reasons which was beyond the control of the Company. 3. Management Discussion and Analysis Report As per the terms of regulations 34(2) (e) of the SEBI Listing Regulations, the Management Discussion and Analysis Report (MDAR) forms part of the Annual Report of the Company. 4. Financial Accounting The Financial Statements have been prepared in compliance with Indian Accounting Standards Ind-AS issued by The Institute of Chartered Accountants of India (ICAI) effective from 01.04.2016 and provisions of the Companies Act, 2013. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared as per the format prescribed under the Schedule III to the Companies Act, 2013. Loans, Guarantees or Investments Your Company is engaged in Exploration & Production (E&P) business which is covered under the exemption provided under section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investment made or guarantee or security given by the company to subsidiaries and associates are not required to be reported. Related Party Transaction Particulars of contracts or arrangements with related parties referred to in section 188 of the Companies Act, 2013, under Form AO C-2, are placed in Annexure-B. 5. Subsidiaries (I) ONGC Videsh Limited ONGC Videsh, the wholly-owned subsidiary of your Company for E&P activities outside India, has participation in 38 projects in 17 countries viz. Vietnam (2 projects), Russia (3 projects), Sudan (2 projects), South Sudan (2 projects), Iran (1 project), Iraq (1 project), Libya (1 project), Myanmar (6 projects), Syria (2 projects), Brazil (2 projects), Colombia (7 projects), Venezuela (2 projects), Kazakhstan (1 project), Azerbaijan (2 projects), Mozambique (1 Project), Bangladesh (2 Projects) and New Zealand (1 Project). Out of 38 projects, 14 are producing, 4 are discovered/ under development, 16 are exploratory and 4 are pipeline projects. ONGC Videsh's share of oil and oil equivalent gas (O+OEG) production, was 12.803 MMtoe during FY'17 as compared to 8.916 MMtoe during FY'16 (43.60% higher). The oil production has increased from 5.510 MMT during FY'16 to 8.434 MMT during FY'17 (53.1% higher) and the gas production increased from 3.406 BCM during FY'16 to 4.369 BCM during FY'17 (28.3% higher). During FY'17, the Company has earned net profit after tax of Rs.6,974 Million as compared to a net loss of Rs.36,401 Million during FY'16. The increase in profit is mainly on account of higher production, higher crude oil prices and lower impairment provisions. (a) Significant Acquisitions, Alliances and Operational highlights of ONGC Videsh during FY'17: ONGC Videsh successfully completed acquisition of 15% interest in Vankor Field located in East Siberia of the Russian Federation on 31st May, 2016 from Rosneft Oil Company and subsequently acquired additional 11% interest on 28th October, 2016. Vankor is Russia's second largest field by production and accounts for about 4% of Russian crude oil production. The daily oil production from the field is around 400,000 bopd on an average and ONGC Videsh's share considering both the acquisitions is about 104,000 bopd. Financing arrangements for above Acquisition: - ONGC Videsh Vankorneft Pte. Ltd., a step down wholly owned subsidiary of ONGC Videsh raised USD 1 billion comprising of USD 400 million Senior Unsecured Notes due 2022 and USD 600 million Senior Unsecured Notes due 2026 in the international capital markets in July 2016. The bond issuance was made at competitive rates and was well received by the investors. The deal was awarded the “Best Corporate Bond” deal from India at The Asset Triple A Country Awards 2016. - ONGC Videsh Vankorneft Pte. Ltd also raised finances by way of bridge loan to acquire 11% interest in JSC Vankorneft in October 2016. The bridge loans were replaced in April 2017 for which the company tied up facilities of USD 500 million and JPY 38 billion syndicated for longer tenor at competitive prices from International commercial banks. (b) During FY'17, ONGC Videsh signed the following Memorandum of Understanding (MoUs): i. MoU with SOCAR Trading SA: ONGC Videsh and SOCAR Trading SA signed an MoU on 27th May, 2016 for co-operation in identified areas such as co-operation in joint marketing of Azeri crude, other mutually agreed crude oil/gas etc. ii. MoU with Dana Energy: ONGC Videsh and Dana Energy have entered into an MoU on 18th August 2016 for development of possible projects in Iran. iii. MoU with Roseneft: ONGC Videsh and Rosneft, Russia signed an Agreement on 15th October 2016 for mutual cooperation in the area of education and training. iv. MoU with Ecopetrol: ONGC Videsh and Ecopetrol entered into an MoU on 8th March 2017 as a way-forward for realizing the common intention of relinquishing Block RC-10 and transfer of pending Minimum financial commitments of Block RC-10 to new block(s). v. MoU with Mubadala: ONGC Videsh and Mubadala Petroleum signed an MoU on 6th February, 2017 for future collaboration in upstream oil and gas exploration, development and production projects in third countries. vi. MoU with Gazprom Neft PJSC: ONGC Videsh and Gazprom Neft signed an MoU on 29th March, 2017 for cooperation for geological survey, exploration, appraisal, development and production of hydrocarbons on the continental shelf of the Russian Federation and third countries. (c) Operations i. Syria: The ongoing geo-political situation in Syria including EU sanctions and the resulting restrictions on contractors continue to adversely affecting Syrian operations since December 2011. ii. South Sudan: The operations in South Sudan projects are temporarily under shutdown due to internal conflicts and adverse security situation in the country since December, 2013. iii. Venezuela: As a part of remediation plan in San Cristobal project, water injection (45 KBPD) facilities for phase-I are near finalization which will arrest decline in production. iv. PetroCarabobo: The crude sale and purchase agreement (SPA) was signed between President PCB & PPSA in Nov 2016. After construction of pipelines, the changeover of diluent from Naptha to Mesa-30 has been affected since 11th March 2017 and the JV is producing Merey-16 to result in better value realization of extra heavy crude (XHO) being produced. v. Sakhalin-I, Russia: A new onland rig “Krechet” for Odoptu field has been commissioned in early 2017 for stage 2 development of the Odoptu field with a drilling plan of 32 wells. Drilling of world's longest ERD well (O5-RD) in Chayvo field with measured length of 15000m is in progress. The well was spudded on 6th March 2017. Earlier world record of longest well of 13,500m is also held by Sakhalin-I project. Direct Subsidiaries and Joint Ventures of ONGC Videsh: 1. ONGC Nile Ganga B.V. (ONGBV): ONGBV a subsidiary of ONGC Videsh, is engaged in E&P activities directly or through its subsidiaries/Jvs in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25% Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.481 MMT during FY'17. ONGBV also holds 25% PI in Greater Pioneer Operating Company (GPOC), South Sudan. Due to adverse geo-political conditions, ONGC Videsh could not produce in GPOC, South Sudan during FY'17. ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due to force majeure conditions in Syria, there was no production in AFPC project during FY'17. ONGBV holds 40% PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil & oil equivalent gas production of about 0.475 MMTOE during FY'17. ONGBV holds 27% PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. with its share of oil and oil equivalent gas production of about 0.643 MMTOE during FY'17. It also holds 25% PI in Block BM-SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltd. ONGBV also holds 8.347% PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for onshore Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.San Cristobal Project: Consequent to the signing of agreements on Pending Payments and Financing of San Cristobal project for remediation plan between PdVSA and ONGC Nile Ganga (San Cristobal) BV on 4th November 2016, PdVSA has paid USD 19.75 million till March 2017 to liquidate partly the outstanding dividend due from the JV Petrolera IndoVenezolana S.A.(PIVSA) 2. ONGC Narmada Limited (ONL): ONL has been retained for acquisition of future E&P projects in Nigeria. 3. ONGC Amazon Alaknanda Limited (OAAL): OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec ofChina. During FY'17, ONGC Videsh's share of oil and oil equivalent gas production in MECL was about 0.555 MMTOE. 4. Imperial Energy Limited (IEL): IEL, a wholly-owned subsidiary of ONGC Videsh incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia, Russia. During FY'17, Imperial Energy's oil and oil equivalent gas production was about 0.298 MMTOE. 5. Carabobo One AB: Carabobo One AB, a subsidiary of ONGC Videsh incorporated in Sweden, indirectly holds 11% PI in Carabobo-1 Project, Venezuela. During FY'17, ONGC Videsh's share of oil and oil equivalent gas production was about 0.151 MMTOE. 6. ONGC BTC Limited: ONGC BTC Limited holds 2.36% interest in the Baku-Tbilisi-Ceyhan Pipeline (“BTC”) which owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carry crude from the ACG fields from Azerbaijan to the Mediterranean Sea. 7. Beas Rovuma Energy Mozambique Limited (BREML): BREML was incorporated in British Virgin Islands (BVI) and holds 6% PI in Rovuma Area 1, Mozambique. 8. ONGC Videsh Atlantic Inc. (OVAI): ONGC Videsh setup a Geological and Geophysical (G&G) Centre at Houston, USA through its wholly owned subsidiary ONGC Videsh Atlantic Inc. The Centre caters to requirement of G&G studies for potential new acquisitions ofONGC Videsh including G&G studies of its existing portfolio of projects. 9. ONGC Videsh Rovuma Limited: ONGC Videsh Rovuma Limited a wholly owned subsidiary of ONGC Videsh was incorporated in Mauritius for re-structuring of 10% PI in Rovuma Area 1, Mozambique. 10. ONGC Videsh Singapore Pte. Ltd.: The Company was incorporated on 18th April, 2016 in Singapore for acquisition of shares in Vankorneft, Russia, through its subsidiary ONGC Videsh Vankorneft Pte Limited. OVVL holds 26% shares in Vankorneft, Russia and its share of production during FY'17 was 4.545 MMTOE. 11. ONGC Mittal Energy Limited (OMEL): ONGC Videsh along with Mittal Investments Sarl (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. ONGC Videsh and MIS together hold 98% equity shares of OMEL in the ratio of 49.98 : 48.02 remaining 2% shares are held by SBI Capital Markets Ltd. OMEL also holds 1.20% of the issued share capital of ONGBV by way of Class-C shares issued by ONGBV exclusively for Syrian Assets and is being financed by Class-C Preference Shares issued by ONGBV. (II)Mangalore Refinery and Petrochemicals Limited (MRPL) Your Company continues to hold 71.62 per cent equity stake in MRPL, a Schedule 'A' Mini Ratna and listed entity, which is a single location 15 MMTPA Refinery on the West coast. Performance Highlights FY'17 MRPL achieved the highest-ever throughput of 16.27 MMT in FY 2016-17 against 15.69 MMT in FY 2015-16. Marketing & Retail Operations MRPL continues to expand its market spread in the direct sales segment of petroleum products in Karnataka and its adjoining states. MRPL has significant market share and direct customer relations for products such as Bitumen, Fuel Oil, Sulphur, Diesel, Naphtha, Petcoke and Mixed Xylene in its refinery zone. The total sales volume of direct marketing products including polypropylene during FY 2016-17 was 1858 TMT. MRPL has penetrated the polypropylene market with additional grades and has achieved sales volume of 264 TMT during FY 2016-17. The Company has in a remarkably short term achieved a leadership position in south India for few large volume polymer grades. Future projects of MRPL The Company has taken up the enhancement of the Refinery capacity to 18/25 MMTPA with low cost revamp. Land allocation of1050 acres has been made by the Government of Karnataka. Necessary steps are being taken to ensure compliance with BS- VI fuel quality standards by the year 2020. Acquisition of controlling stake in OMPL Subsequent to OMPL having become a subsidiary of MRPL and a Government company under Companies Act, 2013, the process of merger/ amalgamation of OMPL into and with MRPL is under process. ONGC Mangalore Petrochemicals Limited (OMPL) OMPL has been promoted by your Company, which has set up Aromatic Complex with an annual capacity 914 KTPA of Para-xylene and 283 KPTA of Benzene in Mangalore Special Economic Zone (MSEZ) as value chain integration project of your Company. After the successful commissioning of OMPL, MRPL has increased its equity from 3% to 51.002% in Feb, 2015 with balance 48.998% held by your Company and thus OMPL has became a subsidiary of MRPL. The total project cost is about Rs.69,110 million. OMPL commenced commercial operation from 1st October, 2014. OMPL is presently operating at 95% capacity utilization. During FY'17 OMPL achieved highest revenue of Rs.52,565 Million with highest exports of Rs.37,412 million, establishing a niche presence in the international market. 6. Annual Report of Subsidiaries and Consolidated Financial Statement The Consolidated Financial Statement for the year ended 31st March, 2017 of your Company have been prepared in accordance with section 134 of the Companies Act, 2013, Ind AS 110 “Consolidated Financial Statements” and Ind AS 28 “Investments in Associates and Joint Ventures”. The audited Consolidated Financial Statements for the year ended 31st March, 2017 form part of the Annual Report. Full Annual Report of subsidiaries of the Company will be made available to any shareholder upon request, which is also available on Company's website. Further, Annual Reports of MRPL and ONGC Videsh are also available on website www.mrpl.co.in and www.ongcvidesh . com respectively. 7. Joint Ventures/ Associates 1-1 (a) ONGC Petro additions Limited ONGC Petro-additions Limited (OPaL) is promoted by your Company as a Joint Venture ( JV) Company, with envisaged equity stake of 26% along with GAIL (8.85%). GSPC also has a token presence in OPaL. The balance equity would be tied up with Strategic Partners/FIs or through Public offer. OPaL is a mega petrochemical project at Dahej SEZ for utilizing in-house production of C2-C3 and Naphtha from various units of ONGC. Hon'able Prime Minister of India dedicated OPaL to the nation on 7th March, 2017. Total project cost of OPaL is Rs.270,110 million. OPaL successfully raised Rs.72,860 million through Compulsorily Convertible Debenture at competitive interest rates. With this the entire equity of Rs.112,300 million has been tied up. All units of OPaL were commissioned during Dec'16 to Feb'17. The products of OPaL - Polypropylene, HDPE and LLDPE are well accepted by the market. (b) ONGC Tripura Power Company Limited (OTPC) OTPC is promoted by your Company with an equity stake of 50% along with Govt. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with India Infrastructure Fund - II acting through IDFC alternatives Limited. OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power Plant at Palatana, Tripura at a project cost of Rs.40,470 million. The basic objective of the project is to monetize idle gas assets of your Company in land-locked Tripura state and to boost exploratory efforts in the region. Power evacuation for both the units is done through 663 KM long 400 KV double circuit transmission network by the North-East Transmission Company Limited (NETC), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states. OTPC's both power units of 363.3 MW each are fully operational since 4thJan, 2014 and 24th March, 2015 respectively. Plant achieved highest generation of 747 MW (103%) on 15th February 2017. It generated record 4170 million units of power during FY'17. The plant meets 35% power requirement of North Eastern states. It became the first Dividend paying standalone gas based power generation company in India. It also obtained CERC certification. (c) Dahej SEZ Limited (DSL) Your Company, as a Lead Promoter has developed a multi-product SEZ at Dahej in coastal Gujarat to set up C2-C3 Extraction Plant as a value-chain integration project - OPaL through JV route in this SEZ Area. Your Company has 50% equity in the project with GIDC having the rest 50%. Present Status: SEZ is already operational with total 43 units are in production and units in SEZ have clocked export of Rs.6,750 million in FY'17 against Rs.27,480 million in FY'16. Total investment is to the tune of Rs.390,000 million with employment of around 12000 people. (d) Mangalore SEZ Limited (MSEZL) Your Company has set up MSEZ to serve as site for development of necessary infrastructure to facilitate and locate ONGC/MRPL's Aromatic complex. Your Company has an equity stake of 26% in MSEZ and other equity shareholders are KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%). SEZ is operational since 1st April, 2015. (e) Petronet MHB Limited PMHBL is a JV company where in your Company has an equity stake of 32.72%, HPCL (32.72%) and balance 34.56 % of equity being held by leading banks. PMHBL owns and operates a multiproduct pipeline to transport MRPL's products to the hinterland of Karnataka. In FY'17 PMHBL pipeline has achieved a throughput of3.429 MMT against total throughput of 3.318 MMT last year. As per audited result for FY'17, the turnover & PAT of PMHBL are Rs.1,283 million and Rs.810 million, respectively. (f) ONGC TERI Biotech Limited ONGC TERI Biotech Limited (OTBL) which was incorporated on 26th March, 2007 is a Joint-venture Company of your Company in association with The Energy Research Institute (TERI), with shareholding of 49.98% and 48.02%, respectively. Remaining 2% shareholding is held by individuals. Through the efforts of joint research of your Company along with TERI over the years, OTBL is offering technologies and providing various Biotechnical Solutions to Oil and Gas Industry, both in India and abroad. These technologies include: Oil zapper Technology (Bioremediation) Used to eliminate & tackle oil spills, oily sludge, and hazardous hydrocarbon waste; Paraffin Degrading Bacteria (PDB) - used to prevent Paraffin Deposition in Oilwell Tubing Wax Deposition Prevention (WDP) - Used to prevent Paraffin Deposition in surface and subsurface flow lines Microbial Enhanced Oil Recovery (MeOR) - Used for Enhanced Oil Recovery by mobilizing crude oil trapped in pores of Oil Reservoirs (g) Petronet LNG Limited (PLL) Your Company has 12.5 per cent equity stake in PLL, with the same proportion of stakes (12.5% each) held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG Terminal was further expanded from 10 MMTPA to 15 MMTPA in October 2016 and the same is further being expanded to 17.50 MMTPA. A new LNG terminal of capacity 5 MMTPA has been set up at Kochi. PLL is also planning to set up an LNG terminal of capacity 5 MMTPA at Gangavaram, Andhra Pradesh. The turnover of PLL during FY'17 is Rs.2,46,160 million and PAT was Rs.17,231 million (h) Pawan Hans Limited (PHL) Your Company has 49 per cent equity stake in PHL (previously known as Pawan Hans Helicopters Limited). Balance 51 per cent equity is held by the Government of India. PHL is one ofAsia's largest helicopter operators having a well-balanced operational fleet of 46 helicopters. It provides helicopter support for ONGC's offshore operations. The GoI acting through the Department of Investment & Public Asset Management (“DIPAM”) proposes to disinvest its entire equity shareholding in PHL by way of strategic sale to prospective investor(s) along with transfer of management control. GoI has appointed SBICAP as its advisor to advise and manage the Strategic Sale of PHL (“Transaction”). Meanwhile, the GoI proposed to convert its loan into equity capital by way of right issue. PHL has offered proportionate number of shares at face value to the Company. Accordingly, your Company has decided to invest a sum of Rs.1528.16 million to maintain the present equity shareholding level at 49%. 8. Other Business Initiatives, Important MoUs/Agreement (a) Re-assessment of Hydrocarbon Resources, KDMIPE, Dehradun Your Company is carrying out the project on Re-assessment of hydrocarbon resources of sedimentary basins and deep water areas of India, in association with Oil India Ltd. (OIL) and DGH. For this purpose 2 methodologies are being adopted, namely, Petroleum System Modelling-for basins with adequate geological information and data availability (11 basins) and Areal Yield-for basins with relatively poor data availability (15 basins). The project is to be completed by November, 2017. The project is being periodically reviewed by National and International Experts to ensure that the workflow for the project and quality of the deliverables are conforming the best industry practices and international standards. Presently the project is being carried out by identified teams at designated workcentres of the Company. As on 31.03.2017, the geological model for Satpura-South Rewa-Damodar, Bastar, Chattishgarh, Karewa, Vindhyan, Mahanadi, Rajasthan, Spiti-Zanskar, Mumbai Offshore and Pranhita-Godavari basins have been prepared and resource assessment and estimation of YTF will be carried out in association with international experts. The studies for twelve sedimentary basins (Cambay, KG, Cauvery, Bengal-Purnea, Andaman-Nicobar, Kutch-Saurashtra, Assam Shelf, Assam-Arakan fold Belt, Kerala-Konkan, Himalayan Fold Belt, Bhima-Kalagdi and Ganga-Punjab Plains) is in progress at designated work centres of the Company (b) National Seismic Programme: Acquisition, Processing & Interpretation of Un-appraised Areas Mo PNG has assigned your Company the responsibility of Acquisition, Processing & Interpretation (API) of 40835 LKM of 2D seismic data in Unappraised areas of Indian sedimentary basins falling in 24 onland areas (grouped in 11 sectors) except North east, situated in 18 States/Union Territory under “National Seismic Project (NSP)”. The basic objective of the seismic survey is to map and study Tertiary/ Mesozoic/Proterozoic sediments for hydrocarbon prospectivity and assessment of their potential. This would enable Government to assess hydrocarbon prospectivity of the areas for carving out and offering exploration blocks in future bidding rounds as per the GoI policies. Under this project, 2D seismic data acquisition work has started in Saurashtra area on 12.09.2016 and in Rajasthan, Mahanadi, Deccan Synclise, Bhima, Kaladgi, Vindhyana and Himalayan Foreland areas in October, 2016. As on 31.03.2017, 5033 LKM of 2D data has been acquired and further acquisition is in progress. (c) Agreement between ONGC and OPaL Your Company and OPaL (ONGC Petro Additions Ltd) signed an agreement on 22.04.2016 for supply of Naphtha through Marine Route. (d) Crude Oil Sale Agreement (COSA) i. Nominated Fields: Negotiations are in progress for the new COSA with the PSU Refiners. The existing COSA was valid till 31.03.2015 and has been extended till 31.03.2018. ii. NELP Fields: Regarding crude supply from NELP fields in Gujarat to IOCL, the JV COSA for NELP fields (Karannagar, Vadatal, Nadiad & W Patan) under the Company's operatorship is under negotiation with IOC. Similarly for NELP fields in Karaikal Asset (Madanam & Nagayalanka), the process has been initiated to put COSA in place with CPCL and MRPL. (e) Regasification Agreement between ONGC and SLPL for LNG: A definitive regasification agreement was executed on 23.06.2016 for booking of1.0 MMTPA regasification capacity for a period of 20 years in 5.0 MMTPA Floating Storage and Regasification Unit (FSRU) Terminal at Jafrabad Port, Gujarat, being set up by Swan Energy Ltd. (SEL) through a Special Purpose Vehicle (SPV), Swan LNG Pvt. Ltd. (SLPL). (f) Agreement of Collaboration (AOC) with National Mining Research Center-Skochinsky Institute ofMining (NMRC-SIM): Your Company signed an Agreement of Collaboration (AOC) with National Mining Research Center-Skochinsky Institute of Mining (NMRC-SIM), Russia on 25th November 2004 for Underground Coal Gasification (UCG). Under this AOC, NMRC-SIM provided consultancy to your Company for carrying out suitability studies for some coal / lignite blocks in India. Award of mining lease for the said Vastan lignite block by Mo C, GoI is still awaited. The AO C with SIM expired on 24th November, 2014 and has been extended for another five years upto March 4, 2020. (g) Industry Affiliates programme (IAP) Agreement on Chemical EOR was signed on 10.03.2015 between IRS and University of Texas, Austin, Texas, USA and it is valid for five years. (h) MoC between ONGC PAN IIT: Your Company has entered into a Memorandum of Collaboration (MoC) with PanIIT in January 19, 2015 at New Delhi to work towards a collective R&D Programme for developing indigenous technologies to enhance exploration and exploitation of hydrocarbons and alternate sources of energy. Pan IIT is a consortium of seven premier Indian Institutes of Technology namely, IIT-Kharagpur, IIT-Kanpur, IIT-Madras, IIT-Mumbai, IIT-Delhi, IIT-Guwahati and IIT-Roorkee. This is long-term initiative for sustained research, development and capacity building. Under this program a total of 15 projects have been taken up in Phase-I and for Phase-II, 12 projects approved by the Program Advisory Committee. Further, for Phase-III, a total of 55 project proposals have been received from various IITs and the same have been under review by ONGC Institutes. (i) MoU with Geological Survey of India: Your Company and GSI Training Institute (GSITI), Hyderabad entered into a Memorandum of Understanding which aimed at providing exposure and advanced field geological training to young ONGC geoscientists at GSI Field Training Centers (FTCs) at Kuju (Jharkhand) and Aizawl (Mizoram). As per the MoU, the first batch of15 young geoscientists from all the Company underwent training in Field Geology at the GSI Training Institute's Field Training Centers (FTCs) in Kuzu (Jharkhand) and Aizawl (Mizoram) from 8th to 31st March, 2017. (j) Farm-in/Farm-out Agreement with Gujarat State Petroleum Corporation Limited (GSPC) in respect of NELP Block KG-OSN-2001/3: Your Company has acquired 80% stake in the block KG-OSN-2001/3 falling in KG Offshore along with Participating Interest (PI) and Operatorship at a purchase consideration of US$ 995.26 million for DDW Field in the Block. The Farm-in/Farm-out Agreement was executed between your Company and GSPC on 10.03.2017. The Farm-in/Farm-out Agreement envisages: the said acquisition is subject to satisfaction of a set of conditions precedent, including mandatory Government approval. 9. Information Technology - Your Company has taken up the ambitious challenge of going Paperless. The Project has been awarded on 29th Dec 2016 and is aimed at making more than 3000 paper-based processes paperless. This initiative will be one of the Company's contribution towards our Prime Minister's initiative of Digital India. The Project is scheduled to be rolled-out in Mumbai by May 2017 and organisation-wide by June 2018. - Microwave Offshore-Onshore Project was been completed successfully. Under this project, terrestrial links were established which connect the Company's Bandra and Uran Offices with Neelam - B-193 - BPB -BPA and Heera platforms in Mumbai Offshore situated more than 100 kms away into the sea. This high-capacity backbone Microwave link is capable of carrying multi-service traffic with high spectral efficiency and providing carrier grade service. This technology driven project has gone through many challenges while constructing a 125 m Tower on Dronagiri hills off Mumbai with effective height of 205 m above MSL. This is the longest over the sea microwave link, longest offshore hop of the length of 65 kms in the region having total offshore path length of 138 kms. Link uses Radios supporting higher-order modulation of 1024 QAM with XPIC technology for higher throughput of upto 450 Mbps and reduced latency. This project will meet full gamut of IT and telecommunication needs (including Video Conferencing, RTOC, Rotary equipment monitoring and CCTV) of Neelam and Heera Asset and Bassein and Satellite Assets of Offshore and will be a stepping stone for further extension to MH Asset. Initiatives and Development in the field of Information Technology Information Security services a) CISO office is taking due initiative in ensuring information security measures across your Company. In this direction, additionally 11 Infocom Data Centres (Karaikal, Rajahmundry, Kolkata, Dehradun, Vadodara, Hazira, Jorhat, Nazira, Agartala, Mehsana and Ankleshwar) and 4 G&G Data Centres (Panvel-SPIC, VRC, EPINET and GEODEC) were taken up for ISMS implementation through in-house resources. ISMS documentation of 11 Infocom Data centres have been completed and documentations of 4 Geological and Geophysics (G&G) Data Centres are in progress. b) For the first time, IS awareness session was conducted for GTs during their MultiDisciplinary Training (MDT) at Dehradun. EACS Project: A state-of-the-art Enterprise wide Access Control and Surveillance (EACS) system project has been conceptualized to mitigate any threat perception to the security of the oil installations as well as offices of your Company. For the implementation of the state-of-the-art EACS system, contracts have been awarded to- - M/s BEL (LSTK contractor) for EACS project implementation. - M/s RITES (PMC contractor) for EACS project management. - M/s PDIL (TPI agency) for Third Party Inspection services for EACS project. Online Project Monitoring and Control (OPMAC) tool of SAP system is used for uploading all the project related documents and their versions. Suitable trainings have been provided to the concerned executives from the various work centres and also to the contractor's personnel for its use. 10. INDEG-Make in India Campaign in ONGC Your Company is leading the upstream sector in Make in India Campaign, and embarked on a time bound plan by MoPNG for successful implementation of the campaign in the oil and gas industry. This major national program is designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing/ services infrastructure to make India a manufacturing hub and bringing economic transformation in India. Your Company carries its legacy of being the pioneer corporate in initiative on Import Substitution and indigenisation. In the last few decades through its INDEG Group, your Company has developed many Indian vendors and some of them are now international players in their areas. ONGC's initiatives has helped Public Sector Units to expand their capabilities, and your Company has helped creation of some of the large Indian companies in services and projects areas of oil & gas. With the new thrust through the “Make in India” campaign, your Company has revived its multi-pronged approach to enhance the capabilities of Indian equipment, goods, services and projects market, through promotion of Indian vendors for development in India and through tie-ups with global players. Indigenization of Capital, Stores and Spares items A. UPET Rig Spares i. Your Company has done indigenized revamping of Wireless Remote Control System for Romanian 50-IV- Work over Rig, at a cost of Rs.46.8 million. ii. Central Workshop Vadodara of your Company successfully completed capital refurbishment of imported ROM-100-I rig (Romanian) and Rom-50-IX Rig, adding a fresh lease of life to the work-over Rigs. All capital repairs and maintenance of imported equipment of the rig are carried out indigenously. iii. Your Company during the refurbishment has developed various spares locally for UPET-ROM make (Romanian) Work over rigs. B. Drilling Services i. Your Company has developed an in-house innovative PLC controlled Safety System for Travelling block movement. This system has been successfully installed on an on-shore drilling rig. ii. Radial drilling, a productivity improving drilling technology, was carried out in four wells for the first time to enhance reach in the reservoir and increasing flow path. C. Production Process Equipment i. Your Company has recently developed SRP monitoring system in-house and introduced it successfully in 57 SRP wells in Limbodra GGS II, Ahmedabad. This system will help to attend the fault and revive instantaneously thus reducing the downtime particularly for remote locations. The cost of such system is very low compared to procurement from an international source. ii. Your Company has domestically carried out indigenous repairs on 2 Cryogenic pumps used in LNG facility at Dahej, manufactured by Ebara International Corporation, USA (EIC). The failure oftwo of these three pumps had forced the plant capacity to 50%. Your Company successfully undertook indigenous repairs of these pumps, thus saving 83% of cost at Rs.3.15 million against Rs.17.6 million. iii. A chemical formulation of polymeric surfactant was developed and prepared by RGL, Vadodara for treatment of asphaltic or waxy crude for flow improvement. The solution was successfully tested and used for crude oil in Cambay Basin. D. Well Services i. Well Stimulation Services of your Company has indigenized products worth nearly Rs.9.8 million and developed 10 vendors in the process. It has also saved Rs.364.4 million through use of indigenous equipment and services in its Make in India efforts. ii. Rig BHEL 120 VI of Well Services was successfully refurbished thereby adding a fresh lease of life to the Work over Rig. iii. Successful fracturing of deepest and highest temperature well at Rajahmundry was carried out by in-house team (depth of4069.5 Mts and BHT - 165.5°C) using in-house developed fracture fluid for this high temperature. E. Other Equipment Indigenization Your Company carried out successful replacement of display monitors in logging unit with indigenously manufactured advanced feature monitors thereby saving Rs.0.45 million per unit of such replacements. Tie ups with Global Players a) Global Industry Players - Tie ups in India i) Riser Maintenance yard in Kakinada in Andhra Pradesh has been developed by Transocean, to avoid the need to periodically export & re-import the “Risers” for inspection and reconditioning. This facility includes Riser certification, Floatation repairs, Preservation - enhancing the life of costly asset and adequate storage area. The facility is operated through JVs with international companies Vetco/NOV for riser joints and Dynaglass for floatation modules. ii) Equipment and Services Centre set up by NOV India Pvt. Ltd. (NOVIPL) extends aftermarket support services to all Oil/Gas producing companies for Service, Repair, Parts Supply and extending Technical Training. NOVIPL has acquired 4 workshops in India, Mumbai (2), Chennai and Pune one each for repair, recertify, all NOV supplied equipment. Previously all these jobs were done in Singapore and UAE. These workshops are supported by many small Vendors, fabricators, and suppliers within India. NOV is also sourcing parts manufactured in India through strategic partnership with local manufacturers. iii) Offshore Vessels and Rig Repair set up by Sembmarine Kakinada Limited (SKL) is a JV between Sembwang Shipyard Pte. and Kakinada Seaports Limited. SKL is operating within the vicinity of Kakinada Seaports and will be developed in 3 phases to offer shipowners and offshore operators a one-stop integrated offshore service facility for the repairs and servicing of offshore vessels and ships, oil and gas riser/equipment repairs as well as platforms and modules fabrication. Your Company has awarded repair job of its floater rig Sagar Vijay. SKL is also engaged in repair of various other Indian flag vessels. iv) Land Rig Manufacturing unit set up by Drillmec India Pvt Ltd. Drillmec India has manufactured the First Mobile Rig Workover & Drilling Mod. MR 8000. It is a joint venture company between Drillmec S.p.A Italy and KMOC Kakinada Marine and Offshore Complex Ltd. India. b) Domestic Ancillary Companies in India by Global Players i) NOV Rig system: Repair and servicing of major drilling equipment like BOPs, Risers, Pressure control equipment, etc. ii) Hydril Pressure Control Pvt. Ltd. : Hydril BOPs are being inspected and repaired at Hydril facility in Chennai. 11. 'ONGC Start-up' Initiative “Start-up India” initiative was launched by the Hon'ble Prime Minister of India on January 16, 2016, which aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of “Start-ups”. Your Company has launched Rs.1000 million Start-up fund on its 60th Foundation Day, i.e. on 14th August 2016 to foster, nurture and incubate new ideas related to energy sector. 'ONGC Startup' Fund shall cater to the “Energy Sector”. Your Company intends to provide the entire support chain for start-ups including seed capital, hand-holding, mentoring, market linkage and follow-ups. The aim of 'ONGC Start-up' is to increase the contribution of fresh implementable ideas in the oil and gas sector. The following road-map has been considered for implementation of the Start-up Initiative. a) Creating a Start Up Fund: - Your Company has already announced launch of Rs.1000 million Start-up fund on 14th August 2016 b) Creating Awareness & Invitation of Proposals - Your Company created a webpage on its corporate website for creating awareness about the initiative on 14th August 2016 - Dedicated Website: A dedicated website startup.ongc.co.in for 'ONGC Startup' initiative has been created, which was launched by Honorable, Union Minister of State (I/C) Petroleum and Natural Gas on 7th December 2016. Start-ups are registering their interest through this website for sharing their ideas and seeking support from ONGC. c) Collaboration for Technology Business Incubation - Your Company entered into a MoU with IIT Bombay (IITB) and Society of Innovation and Entrepreneurship (SINE), on 7th December, 2016. In collaboration with IITB and SINE, your Company intends to nurture and incubate new ideas related to energy sector. The first batch of incubation of Start-Ups is likely to happen in early 2017-18. 12. Health, Safety and Environment (HSE) Accreditations and Other Achievements Being a high risk industry, safety of its employees is topmost priority for your Company. Achieving the annual targets with “Mission-Zero Fatality” is the theme adopted for the year 2016-17 with each employee of the organization as safety officer. Globally recognized QHSE Management System is implemented conforming to requirements of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001 (OHSAS) at the Company's facilities and certified by reputed certification agencies at all its operational units. Corporate guidelines on online incident reporting, investigation and compliance monitoring of various rules and regulations have been developed and implemented for maintaining uniformity throughout the organization in line with international practices. Accreditations: a. Your Company is accredited by National Accreditation Board for Education & Training (NABET) - Quality Council of India (QCI) accreditation as the Consultant Organization for the purpose of carrying out Environment Impact Assessments of offshore and onshore Oil and Gas Exploration, Development & Production and Petroleum refining industry sectors. This helps in saving substantial time and money in getting EC which helps in an early commencement of the operations. Highlights of HSE during 2016-17: a) Performance of Memorandum of Understanding (MoU) with MoPNG on HSE parameters: Your Company gives highest priority to the implementation of the observations raised during External Safety Audits (ESA) and Internal Safety Audits (ISA). Highest compliance to the observations has been achieved, as under: External Safety Audits Internal OISD DGMS Safety Audits 97.54% 94.09% 88.5% b) The Mines Vocational Training: 2546 (1329 ONGC+ 1217 Contractual employees) have been provided to the field going personnel. c) Various safety awareness programs were conducted at all work centres with the theme “Safety Rules Saves Lives” for the year 2017. d) Review of HSE policies including Improvement in policies on training of Contractual Employees, HSE Manpower Reporting, Safety briefing guidelines, Behavioural Based Safety, Compliance pending M B Lal recommendations, Safety critical equipment, Issuing of SOPs, Accident/ incident analysis by Third party and Setting of ERC at Corporate Office. e) Online incident reporting started as per the requirement of PNGRB regulation. f) A detailed HSE dossier for each work centre was provided to all Asset/Basin Managers and Services Chiefs for monthly monitoring. Dossier includes ISA compliance status, OISD audit observations, DGMS observations, EC decision compliance, SOPs, Safety Champion, issues related to Environment, Mock Drills, ERP upgradation, Hazard Alert Card, Accident/Incidence reporting in SAP, compliance to recommendations of inquiry committees in fatal & major accidents in last three years, PME and Safety Critical Equipment. The VCC at each work centre will discuss all the HSE pending issues as per EC decision and status/ ATR will be submitted to Chief HSE on monthly basis. g) DGMS in association with the Company and other upstream oil companies reviewed and prepared the Draft OMR 2014 based on OISD standards & submitted to the Ministry of Labour and Employment. The draft OMR Regulation 2016 has been finalised and is expected to be published shortly. h) In order to improve monitoring of DGMS observations, first time an initiative was taken to upload DGMS observations in ICE system, in pursuance of which all planned 6794 observations have been uploaded in ICE system for online monitoring. i) For onshore locations, roll out ofe-PTW started with go live at GGS7-Kalol, Ahmedabad Asset on 6th March 2017. The process of training and roll out at Onshore shall be completed by September 2017. e-PTW is already running at Uran, Hazira, all offshore process complexes and ONGC owned Rigs. j) The first Asian Ministerial Conference on Disaster Risk Reduction was hosted by Government of India in collaboration with the United Nations International Strategy for Disaster Reduction (UNISDR) from 3rd to 5th November, 2016 at Vigyan Bhavan which was inaugurated by Hon'ble Prime Minister of India. Your Company showcased its capabilities contributing towards effective disaster risk reduction, mitigation and preparedness with the help of two working models of fire-fighting systems of fixed oil and gas production installation and drilling / work-over rig. A brochure on crisis management team activities was also released. k) Third Party Audit of 14” & 16” Hazira-KRIBHCO pipelines, 10” Sonamura -Monarchak pipeline and 20” Uran Trombay Pipeline has been conducted as per PNGRB regulations. l) Safety Audit generic observations compendium has been prepared by scanning through all observations raised during external and internal audits for last four years. A mechanism has been designed in SAP system (ICE) for monitoring regular compliances of these observations every six months installation and rig wise. m) In view of notification issued for drill cutting (from water base mud) waste under non-hazardous category issued in Schedule -1 of Hazardous and Other Wastes (Management & Trans boundary Movement) Rules, 2016, the disposal of drill cuttings from water based mud does not attract the provisions ofHazardous and Other Wastes (Management & Trans boundary Movement) Rules, 2016 and this will save a lot of time as authorization under Hazardous Waste Rules will not be required. n) Dispensation has been obtained from the Ministry of Environment, Forest and Climate Change regarding requirement of Forest Clearance for Shot Hole drilling during seismic survey. o) The Environment ministry permitted ground flaring without the provision of 100 meters green belt. In view of scarcity of land, the provision of ground flaring without 100 m green belt will be helpful for your Company. p) Preparation of 5 Nos. of in-house EIA reports resulting in notional savings of approximately Rs.22 million and saving of valuable time. 13. Carbon Management & Sustainable Development Your Company's hydrocarbon exploration & production (E&P) operations are being carried out in varied climate and environment areas ranging from deserts to coastal areas, hilly terrains to forest areas, shallow water to deep waters and also in ultra-deep water areas. These E&P activities often interact with the ecosystems and may have physico-chemical & bio-geochemical impact on the surrounding environment. Your Company, being responsible Corporate not only cares and preserves the environment but also makes efforts for its protection. It is fully conscious to see that ecology & environment are preserved and even improved by taking consistent steps and also through technological upgradation. Your Company has put in place an effective Environment Management Plan and is also taking advance preventive actions so that environment is protected and its activities can remain in harmony with nature. Your Company has also set up a dedicated Institute viz. Institute of Petroleum Safety and Health Management (IPSHEM) at Goa for conducting trainings for industrial health, safety and environment management and also to promote practices in the organization about the safety, health and environment aspects in every phase of operations by evolving best practices and providing trainings in virtual environments. Your Company has taken requisite measures to minimize the impact of E&P activities and taken various measures to mitigate the pollution. It has introduced clean technologies for emission control including design and construction facilities for different, gaseous, liquid and solid effluent generated due to drilling, production and processing facilities from onshore and offshore operations. Measures taken for Mitigating Air Pollution There are no major risk for air pollution like process industry. The source of air emissions are flaring of natural gas, exhaust from running of DG sets, use of heavy equipments, construction activities, movement of vehicles etc. In order to reduce the gas flaring, generators have been installed in the field to utilize low pressure gas for generation of electricity for internal consumption. Regular ambient air quality monitoring studies are carried out around drill sites and production installations as per statutory requirement to measure and monitor concentration of air pollutants in ambient air. The concentration of air pollutants have been found to be within the permissible limits. Gaseous Emissions Control through BoxFlare: Box flare facilities have been installed at Uran Terminal, Hazira Gas Processing Complex and Assam Group Gathering Stations to achieve following - Complete combustion of the flared gases using several stage multiple burners. - Use of low NOx burners. - Cladded in refractory shells with steel enclosures to control the effect of heat and light radiations. - Acoustical insulation for noise control. Smokeless Flaring: The smokeless flare is achieved by properly designed tall stacks with following facilities. - Use of steam injections - Providing additional Oxygen - Height of the stack is maintained in such a way that when emissions strike the ground, they should have ground level concentration within permissible limits. Real Time Monitoring Stations (RTMS): 5 no's of RTMS are installed each at Uran Terminal and Hazira Gas Processing complex to monitor the ambient air quality in and around plants round the clock. Reduction in Gas Flaring/Low Carbon Fuel: In order to reduce GHG emissions, the low pressure gases and other natural gas is being utilised to operate Compressors, Turbines and DG Sets. Vapour Recovery System: Vapour Recovery system has been installed at the crude oil storage tanks to prevent release of fugitive emissions, VOCs etc. besides to check the loss of HC. De-sulphurization of Sour Gas: The sour gas produced from South Bassein Field of West Coast is sweetened at processing plant through Sulphur Recovery Units (SRUs) to avoid the release of acidic gas to the atmosphere. Measures taken for Mitigating Water Pollution and its Management Conservation of fresh water: Towards conservation of an important natural resource 'fresh water' through its replenishment in the aquifer to prevent its further depletion and to sustain ground water table. Six wells to collect the discharge water at different locations of the KDMIPE campus are active. Waste Water Management: Your Company monitors the use of water resources and quality of effluent discharge. Effluent Treatment Plants have been installed in work centres to treat effluent generated during processing of oil and gas to meet statutory requirements for discharge of treated effluent at surface/subsurface. Water Conservation through Rain Water-Harvesting: For conservation of fresh water, your Company has a policy on Rain Water Harvesting which is mandatory for all future projects. Details of existing Rain Water Harvesting projects are given in the section 'Sustainable Development'. Treated water is used for various purposes during drilling at drill site and injecting into the formation for the purpose of maintaining formation pressure. Treated effluent is also used for gardening purpose, floor cleaning and other utilities. Your Company follows the policy of Recycle, Reuse and Recovery for water conservation. Effluent Treatment Plants: In view of environmental friendly disposal of produced effluent, ONGC has set up 26 Nos. of ETPs at different work centres of your Company to treat about 78110 m3/d of waste water produced during E&P operations. Lining of drill site waste pit with High Density Poly Ethylene Sheets (HDPE): To avoid contamination of ground water quality of surrounding areas, HDPE lining is laid in waste pit at drill site. In this way percolation of waste water in the ground during drilling of wells is checked and ground water quality is protected. Produced Water Conditioners (PWCs): Produced Water Conditioners (PWCs) have been installed for treatment of offshore effluent (produced water). For treatment of sewage water being generated at living quarters at offshore platforms, Sewage Treatment Plants (STPs) have been installed before discharging it at offshore. Therefore, the waste water separated from oil and gas is treated and pollutants values are maintained as per prescribed limits before discharging it at onshore/offshore. Offshore Monitoring to check Marine pollution at West & East Coast: To study the impact of E&P operations on Marine Environment, your Company has instituted regular offshore monitoring at West Coast and East Coast covering the entire operational areas. The reports are regularly submitted to regulatory authorities. Oil Spill Management - Response and Combat: Your Company has the capability to handle 700 MT of oil spillage using its Oil Spill Response equipment stockpile kept on 5 different Multi Support Vessels which are strategically positioned 24 x7 round the year to cover the entire operational area to ensure minimum response time during emergency. It has also in place a Contingency Plan duly approved by the Indian Coast Guard for both West and East Coast. For oil spills of Tier - 3 level i.e. - 10,000 MT. Your Company has an agreement with Oil Spill Response Limited, UK for oil spill combatment. Besides, the Company participates in various National Level Exercises with Indian Coast Guard thereby ensuring commitment for marine Environment Protection. Soil Pollution control: Bio-remediation: The oil is recovered from the oily waste produced during drilling operation as far as possible. The remaining waste and oil contaminated soil is subjected to Bioremediation where the oil content is reduced to less than 1% TPH using a consortium of Hydrocarbon degrading bacteria by the OTBL since March 26, 2011. During 2016-17, 25220 MT of oily sludge/ oil contaminated waste has been bio-remediated. Noise Pollution Control: Following mitigation measures to control noise impacts: - Regular noise monitoring is done to measure and monitor sound levels around equipments and machineries and high noise areas are demarcated. - Acoustic enclosures are provided around gen-sets to reduce noise pollution. - Personnel Protective Equipment (PPE) like ear muff/plugs is provided to personnel working in noise prone areas. - Green belt is developed and maintained around major installations which also contribute in mitigating noise pollution. Afforestation projects resulting in CO2 Fixation through Mangrove & Ringal Plantation: Creating Green and Clean Environment: Green belts have been developed up to one third of total area around all the production installations and processing plants to comply with the stipulations of various permissions obtained from state as well as central government. In addition to regular plantation at drill sites and production installations, your Company has undertaken following massive plantation as part of your Company's Corporate Social Responsibility for Environment Protection & for mitigation of Climate Change impacts and also to conserve biodiversity. Mangrove Plantation: A project on mangrove plantation along the shores of Dhadar River on West Coast has been taken up by the Company to protect erosion of shoreline. In the Phase 1 of the project, more than 21.11 lakh mangroves have been planted in the soil erosion-prone area along the coast of the Dhadar River at Gandhar, Ankleshwar and Hazira area. Ringal Plantation: Ringal plantation (Hill bamboo) has been undertaken by the Company in Joshimath and Kedarnath forest areas of Upper Himalayas to strengthen fragile Himalayan eco-system. Plantation of 1.075 million Ringal Plantation in Upper Himalayas is already completed in an area of 430 Hectares in three phases resulting in 1.97 million tonnes of CO2 fixation per annum. Another 0.75 million Ringal plants will be planted in two phases in an area of 300 Ha in Upper Himalayan region which shall result in an additional 1.37 million tonnes of CO2 fixation per annum. An Agreement was also signed with Uttarakhand Bamboo and Fiber Development Board, Dehradun on 01.03.2016 for fourth phase of Ringal Plantation. Other initiatives: a. Green Building: Your Company acknowledges that buildings have major environmental impact over their entire life cycle. Hence, the Company has taken up concept of constructing green building, the essence of which would be to address all these issues in an integrated and scientific manner with due compliance to the guidelines of GRIHA (Green Rating for Integrated Habitat Assessment). As part of its commitment to sustainable development, it is planned to build Green Buildings at Delhi, Mumbai, Kolkata and Dehradun. These buildings are expected to save 50% to 60% energy, save water by about 30%, harvest 100% rainwater and discharge zero sewage and as compared to baseline buildings. Currently, Green buildings at Delhi, Mumbai, and Dehradun house the officers of the Company. b. Replacement of Halons: Corporate HSE has obtained a clarification from the Ozone Cell, MoEF & CC regarding the issue of replacement of Halon based Fire Suppression System. The clarification issued by the Ozone Cell permitted the use of recycled/ recovered Halon. Further, it was clarified that the roadmap was developed for phasing out of production and consumption of Hydro-fluorcarbons (HCFCs) in India and is not applicable for Halon. Therefore, use of the Company's existing stock of Halon can be continued. c. Use of Renewable Energy: Wind Energy: Your Company's holistic focus on sustainable growth ensures its thrust on pursuing renewable sources of energy, decreasing our internal carbon footprint and exploring unconventional hydrocarbons. Further, the Company has commissioned two energy efficient Wind Power Project, one a 51 MW Unit at Bhuj, Gujarat and another 102 MW Wind Farm in Jaisalmer, Rajasthan. Solar Energy: Many of the residential colonies in ONGC have solar water heaters and solar powered street lights. Unmanned platforms in offshore areas also use solar energy for navigation lights and telemetry units. d. Sustainable Development: i. Sustainable Water Management (SWM): As an E&P Company, the Company business depends on sustainability of fresh water resources which are presently under pressure. Globally, per capita availability of freshwater is steadily decreasing and trend will inevitably continue with the increasing consumption levels and climate change unfolds. In this situation, it is imperative for the Company to develop new strategies for water management in order to achieve sustainable growth and development. The details of existing rain water harvesting projects of the Company are given below. - 29 ground water recharge wells at various locations of Ahmedabad Asset. - Rain water from rooftop and surface run off harvesting at Green Building, Mumbai. - Percolation well for bore well recharge at Residential complex, Ankleshwar Asset. - Rain water harvesting system as integral part of C2-C3 plant, Dahej, Gujarat. - Rain water harvesting at Rajahmundry Asset base complex. - 16 infiltration well in IPSHEM, Goa. - 2 ground water recharge wells at IRS, Ahmedabad. - 6 ground water recharge wells at KDMIPE, Dehradun. - 1 ground water recharge well at base complex, RFB, Jodhpur. - RWH system at K. V. School, NOBH and officers' club at Agartala, Tripura Asset. - RWH system, PPCL building, Uran Plant, Raigad, Maharashtra. - Bhavale Hill RWH system, Panvel, Maharashtra. - RWH system at SPIC campus, Panvel, Maharashtra. - RWH systems at various locations at Western Onshore Basin, Vadodara. ii. Clean Development Mechanism Projects Emission Reduction through CDM Projects: Your Company commenced its Clean Development Mechanism (CDM) journey in 2006. Currently, it has 15 registered CDM projects with the United Nations Framework Convention on Climate Change (UNFCCC) that yield (potential) Certified Emissisons Reductions (CER) approx. 2.1 million yearly. The registered CDM projects are as under: Sl. No. Project CER/annum 1 1 Waste heat recovery from Process Gas Compressors (PGCs), Mumbai high south (offshore platform). 5320 2 Up-gradation of Gas Turbine 1 (GT 1) and Gas Turbine 2 (GT 2) at co-generation plant of Hazira Gas Processing Complex (HGPC). 7802 3 Flare gas recovery project at Uran plant. 97740 4 Flare gas recovery project at Hazira Gas Processing Complex (HGPC), Hazira plant. 8793 5 Amine Circulation Pumps Energy Efficiency at Hazira Plant. 4043 6 51 MW wind power project of ONGC at Surajbari. 85762 7 Energy Efficient Green Building at Mumbai. 544 8 Energy Efficient Green Building at DehraDun. 735 9 Gas Flaring Reduction at Neelam & Heera Asset. 65811 10 OTPC Natural gas based combined cycle power plant in Tripura, India. 1612506 11 Energy Efficient Green Building at Kolkata. 1881 12 Energy Efficient Green Building at Delhi. 5944 13 Gas flare reduction at GGS Charali Assam. 15172 14 Replacement of MOL pumps at Neelam and Heera. 10539 15 102 MW Wind Power project at Jaisalmer, Rajasthan. 180177 Total 2102769 Four production installations (CPF Gandhar, Gandhar GGS-I, Ankleshwar CTF, and Nawagam CTF) were declared carbon neutral for the year 2015-16 after voluntarily retiring 1,34,419 CERs of CP-1 credit period from CDM registry account (UNFCC). iii. Global Methane Initiative (GMI): GMI launched by United States Environmental Protection Agency (USEPA) is a voluntary, multilateral partnership that aims to reduce methane emissions and to advance the recovery and use of methane as a clean energy source. Your Company signed a voluntary agreement with USEPA in 2007 for the purpose of reducing methane releases to the atmosphere by implementing cost effective emission reduction technologies and practices. Your Company has formed a dedicated in-house team, procured methane emission detection and measurement equipment in order to undertake fugitive emission detection and quantification at its operating facilities. ONGC has also drawn an effective plan to map all its production installations for fugitive hydrocarbon emission and make the installations leak-free in the near future through gas leak surveys at various production installations using Gas Find Infrared Camera for identification of methane emission reduction opportunities. iv. Sustainability Reporting ONGC Group Sustainability Report FY'16 was released on 14th March 2017. This being the seventh report of the Company and fourth of ONGC Group (comprising of your Company, ONGC Videsh and MRPL) in succession, was prepared as per latest GRI G4.0 framework with external assurance by third party under “Core” category. 14. Business Responsibility Report -2016-17 In terms of clause (f) of sub-regulation (2) of regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, stipulates that the annual report shall contain a Business Responsibility Report describing the initiatives taken by the listed entity from an environmental, social and governance perspective in the format specified. Accordingly, the Business Responsibility Report - for 2016-17 has been drawn up and appended to this Annual Report. 15. Internal Control System over Financial Reporting A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of standalone financial statements (Ind AS Compliant) for external purpose in accordance with generally accepted accounting principles. These internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect 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 Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the standalone Ind AS financial statements. Your company has adequate internal financial controls system over financial reporting in compliance with the provisions of section 134(3)(c) of the companies Act, 2013 and such internal financial controls over financial reporting were operating effectively. In addition to the above, your Company has a well-established and efficient internal control system and procedure. The Company has a well-defined delegation of financial powers to its various executives through the Book of Delegated Powers (BPD). The Integrated BDP is updated from time-to-time in line with the needs of the organization as well as to bring further delegation. The Company an in-house Internal Audit Department commensurate with its size of operations. Audit observations are periodically reviewed by the Audit & Ethics Committee of the Board and necessary directions are issued whenever required. 16. R&D Efforts Through ONGC Energy Centre Trust (OECT) Your company has taken steps to evaluate various forms of energy to fulfil the country's growing energy needs. Towards this end, your company has established an ONGC Energy Centre Trust (OECT), which is mandated to undertake or assist in programs/ projects of fundamental and applied research for improving and developing commercially viable energy mediums and sources beyond hydrocarbons, especially in clean and/or renewable energy options. ONGC Energy Centre (OEC) has been set-up under the aegis of the OEC Trust to work on various clean energy options. Patents granted Patents granted during FY 2016-17 against three International PCT patents on Cu-Cl cycle, filed earlier, jointly by OEC and ICT-Mumbai in six countries (USA, Canada, Japan, UK, Korea and China) were: 1. 'Hydrogen Production Method by Multi-Step Copper-Chlorine Thermo chemical Cycle' -granted in People's Republic of China. (This patent has now been granted in five out of six countries) 2. 'Effect of Operating Parameters on The Performance of Electrochemical Cell in Copper-Chlorine Cycle' - granted in Canada. (Patent already been granted in Japan and USA) 3. 'Electrochemical Cell Used in Production of Hydrogen Using Cu-Cl Thermochemical Cycle' - granted in UK (Patent already been granted in Canada, Japan and USA) I. R&D Projects by ONGC Energy Centre during 2016-17 The year commenced with 22 projects. Another 15 projects were taken up during the year. Out of the 37 projects under implementation during 2016-17, a total of 6 projects were concluded. The year ended with 31 projects in hand. II. New Projects taken up during the year During FY 2016-17, the Company's Energy Centre has taken up Fourteen (14) new in-house/ collaborative projects, besides two new initiatives. The details are given below: A. Uranium Exploration: 1. ”Drilling, logging and coring operations in approx. Thirty Eight (38) no of parametric wells in Son valley and Sagar district in MP and Karjan-Padra in Gujarat”: To validate the leads obtained from drilling and 3-D seismic modelling in the areas in order to assess the potential for sub-surface Uranium. B. Hydrogen Program: 2. ”Scale-up of I-S, EED & ED based membrane processes for production and concentration of HI as Hydrogen source”, in collaboration with CSIR-CSMCRI, Bhavnagar: To scale-up the I-S, EED and ED for producing HI by reducing I2, increasing the HI molality (concentration) in the presence of HIx solution using indigenously prepared cation-exchange membrane and anion-exchange membrane. 3. ”Development of Ceramic Membranes for Gas Separation Applications in I-S and Cu-Cl cycles For Clean Energy Production”, in collaboration with CSIR-CGCRI, Kolkata: To develop zeolite membranes for separation of H2 from HI/I2 in I-S cycle, H2 from HCl vapour, SO2 and O2 from SO3 in I-S cycle on indigenously prepared clay alumina support tube and demonstration of performance of the membrane at economically scaled uplevel. 4. ”Design and development of Sulfuric Acid Concentrator and Internals for Bayonet Convertor in S-I Cycles”, in collaboration with FITT/IIT Delhi: To Design & develop sulfuric acid concentrator for sulfuric acid concentration in S-I Cycle, and catalyst loading and distributor system to be used in bayonet convertor, and optimize the process/ equipment configuration for future scale up. 5. ”Stability tests of IIT-D developed catalysts and materials of constructions for HI decomposition reaction of SI cycle”, in collaboration with IIT-Delhi: Preparation of Activated Carbon supported bimetallic Ni-Pt catalyst by impregnation-reduction method and performs long term stability tests of 600 hours and immersion corrosion coupon test to screen the potential material of construction for HI decomposition reaction. 6. ”Thermo-chemical Hydrogen Generation through Partially Open-Loop S-I process involving H2S incineration: H2S incineration to SO2”, in collaboration with CSIR-IIP, Dehradun: Laboratory study for the incineration of H2S to generate SO2 to develop process know-how in perspective of partially open loop S-I cycle. 7. ”Development & demonstration of closed loop I-S process in all glass assembly”, in collaboration with FITT/IIT Delhi: To demonstrate integrated closed loop to enable stable, continuous, and long-term operation of I-S process for hydrogen production in all glass /quartz assembly of capacity 5 NL/hr. of hydrogen production continuously for at least 10 hours. 8. ”Selective Conversion of CO2 to CO using an inexpensive Nano-porous Carbon doped oxides through plasma/photocatalysis”, in collaboration with Maulana Azad National Institute of Technology (MANIT), Bhopal: To develop inexpensive catalysts (nanoporous carbon doped oxides), that can convert carbon dioxide into carbon monoxide using plasma-photocatalytic technology. C. Biotechnology Program 9. ”Hotwiring microbial communities for enhanced unconventional gas production” in collaboration with TERI, as Indian partner and University of New South Wales, Australia, as Australian partner, under the Australia-India Scientific Research Fund - 2015 (AISRF-2015) for collaborative research on Clean Energy Technologies. 10. ”Development of hybrid nano-zyme-bacterial hydrogels for augmentation of uranium leaching from subsurface soil”, in collaboration with PSG Institute of Advanced Studies (PSGIAS), Coimbatore: To develop hybrid nano-zyme-bacterial hydrogels for augmentation (by 0.01 to 0.35%) of uranium leaching from subsurface soil. 11. ”Proof-of-Concept for Investigation on Microbial Bioleaching of Uranium from Secondary Uranium Deposits”, in collaboration with Savitribai Phule Pune University (SPPU), Pune: To understand the geochemical composition and the indigenous microbial community structure of uranium bearing sediments and to develop enriched microbial consortia with the potential of uranium bioleaching. D. Geothermal program 12. ”Feasibility of Geothermal Energy in India using Single Well and Production Method”, in collaboration with Indian Institute of Technology, Delhi (IIT-D): On development of simulation model, experimental work will be planned for Single Well Engineered Geothermal Pilot Power Plant. 13. ”Thermal modelling to assess Geothermal Energy Potential in Gandhar area of Cambay Basin”, in collaboration with KDMIPE, Dehradun: To carry out thermal modelling of area identified by OEC for assessing Geothermal Energy resources in Gandhar Field. E. Solar Program: 14. ”Development of Self-Cleaning Coatings Based on Super-hydrophobicity for Solar Panel Applications”, in collaboration with PSG Institute ofAdvanced Studies (PSGIAS), Coimbatore: To develop a transparent and super-hydrophobic, self-cleaning coatings for photovoltaic solar cells, solar thermal and hybrid applications. 17. Human Resources Your Company values its Human Resources the most. To keep their morale high, your company extends several welfare benefits to the employees and their families by way of comprehensive medical care, education, housing and social security. 18. Human Resource Development - 33,660 ONGCians (as on 31st March, 2017) dedicated themselves for the excellent performance of your company during the year. The workforce intake strategy pursued by your Company caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, fast changing level of technology, physically challenging work environment, fluctuating product prices and growing competition. Your Company has drawn up a scientific manpower induction plan aligned to the business plans as well as factoring the manpower profile of the Company. - Your Company believes that continuous development of its human resources fosters engagement and drives competitive advantage. Towards that end, during the year, your Company conducted Business Games to hone the business acumen of its executives in a competitive scenario under simulated business constraints. Business Game has proved to be very popular initiative and tests the ability of the executives through business quizzes, business simulations and case-study presentations. During the year 2016-17, a total of 163 teams and 652 executives participated in the event. Fun Team Games (FTG) were organized for E0 and below level employees to inculcate MDT (Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. A total of 94 teams and 376 employees participated in FTG during the year 2016-17. The winners of Business Games and Fun Team Games were felicitated by the CMD on Republic Day Celebrations. - Your Company attaches utmost importance to the development of its human resource. During the year, a total of 15846 executives and 5703 non-executives were imparted appropriate training, spanning 187712 executive mandays and 20548 non-executive mandays respectively during 2016-17 to all our work centres. - In order to absorb new and emerging technological advancements pertaining to oil and gas exploration and production, 65 programmes, including 21 foreign faculty programmes pertaining to functional disciplines, were organized with the best of faculties from India and abroad during the year. 19. Employee Welfare Your Company continues to extend welfare benefits to the employees and their dependants by way of comprehensive medical care, education, housing, and social security. Your Company continues to align company policies with changing economy and business environment. Employee Welfare Trusts - Your Company has established the following major Trusts for welfare of employees:- - Employees Contributory Provident Fund (ECPF) Trust, manages Provident Fund accounts of employees of your Company. - The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pension fund of employees of your company. The Scheme was converted into a Defined Contribution Scheme as per DPE guidelines in November, 2013. In the converted Defined Contribution Scheme, the corpus in the individual employee account shall include employer/ employee contributions and interest thereon. The benefits under the scheme are dependent on corpus in the individual employee account and accordingly, would be market determined which depends on interest rate, annuity price etc. During FY 2016-17, 1940 cases of retired employees were settled amounting to Rs.8400 million. - The Composite Social Security Scheme (CSSS) formulated by your company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. In case of separation other than death/permanent total disability, employees own contribution along with interest is refunded. - Gratuity Fund Trust exists for payment of gratuity as per the provisions of the Gratuity Act. - Your Company has a Sahayog Trust for its Sahayog Yojana to provide ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the welfare of the workforce and their kin, who do not have adequate means of support. The beneficiaries under this scheme include casual, contingent, daily rated, part-time, adhoc, contract appointees, tenure-based employees, apprentices and trainees employed by your Company besides regular and past employees. Under the scheme an amount of Rs.54.60 million was disbursed by the Trust during 2016-17. Extension of Benefits under the Asha Kiran Scheme to Retired Employees:- You Company has Asha Kiran Scheme to meet the emergency needs of the ex-employees retired prior to 01.01.2007, who are passing through distressful situation. The scheme was launched as per DPE guidelines by creating a corpus of 1.5% of PBT. During the year, under this scheme financial assistance of Rs.1,594.59 million was provided to 14,600 ex-employee as on 31.03.2017. Persons with Disabilities Your Company believes in affording equal opportunities to physically challenged people. As on 31.03.17, there were 245 permanent employees with disabilities (0.73%) on the rolls of your Company. Implementation of Govt. Directives for Priority Section Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Casts (SC) and Scheduled Tribe (ST) employees were 15 percent and 9.9 percent respectively as on 31st March, 2017. Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their upliftment in and around its operational areas:- Annual Component Plan: Under Annual Component Plan for SC/ST, every year an allocation of Rs.200 million is made w.e.f. FY 2011-12. Out of this, Rs.60 million is distributed amongst all the work centres for taking up activities for welfare of SC/ST Communities in and around the areas of our operations. In addition, Rs.140 million is managed centrally, and is earmarked for special projects/proposals/schemes for the welfare of areas/persons belonging to SC/ST communities. The amount under component plan is utilised for taking up various welfare measures for the welfare and upliftment of the needy people of SC/ST Communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical and Health Care. Scholarship to SC/ST meritorious students for pursuing higher professional courses at different Institutes and Universities in the country. Your Company provides 500 scholarships for meritorious SC & ST students for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The major feature of the scheme is that the scholarships have been equally divided for both boys and girl students and the amount of scholarship has been made @ Rs.4,000/- per month amounting to Rs.48,000/- per annum per student subject to the conditions of the scheme. The financial implication involved in a cycle of four years with 500 scholarships awarded every year is around Rs.76 million per annum. 20. Industrial Relations During the year your Company maintained harmonious Industrial Relations throughout the Corporation. Mandays loss due to internal industrial action was reported as 'NIL' for the year 2016-17. 21. Grievance Management System A structured four-tier Grievance Management System in place in the Company to address employee grievances related to policy/policies. The channel of grievance is Reporting Authority of Individual, Sectional in charge, Key executive, Appeals Committee. Appeals Committee has outside professionals as members and empowered to suggest measures to prevent similar grievances in future. CMD takes the final decision in totality on the grievance of the employee with inputs from Director (HR). For external stakeholders, the Company has a well laid down grievance redressal system in place with adequate provisions to escalate the matters up the hierarchy up to the Board (Stakeholders Relationship Committee - a Board level Committee headed by an independent Director). Your Company voluntarily facilitates resolving grievances through Independent External Monitors (IEMs) and through Outside Expert Committee (OEC). Further, a separate website is maintained for grievance redressal (https:// grievance.ongc.co.in). 22. Implementation Under the Right to Information Act -2005 An elaborate mechanism has been set up throughout the organization to deal with requests received under the RTI Act, 2005. A Nodal Officer in the rank of a General Manager has been appointed for the purpose who is based at the Registered Office at Delhi. Besides this, 22 Central Public Information officers (CPIOs) have been designated at different work centers across the country in compliance of Sections 5(1) and 5(2) of the Act. Further, an Officer of the level of Executive Director has been appointed to discharges the role of an Appellate Authority under the Act. The particulars of all the quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the ONGC Corporate portal (www.ongcindia.com ) for wider information of the general public. A total of 123 RTI applications were carried forward from the year 2015-16. Further, 947 applications were received during the period from April, 2016 to July, 2016 before migration to the RTI online system. A total number of 1397 applications were received during the period from August 2016 to March 2017; making a total of 2344 applications. Out of these 2244 applications were replied to during the year. Additionally, the Department of Public Information/RTI Cell also processed 169 Second Appeals which were listed for hearing at the CIC during the FY 2016-17 and took follow-up actions to dispose off the same. 23. Implementation of Official Language Policy Your Company makes concerted efforts to promote Official Language. In this regard, some of the steps taken during the year were: - - Unicode Hindi software installed in all our offices. - Hindi workshops conducted at regular intervals. - Hindi Technical seminars, 'Kavi Gosthies' and Hindi plays organized at various work centres. - Vishwa Hindi Diwas (10th January) celebrated at various work centres of ONGC. - Hindi Teaching Scheme of Govt. of India effectively implemented at all regional work centres. 24. Women Empowerment Women employees constituted over 6.6 percent of your Company's workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its women employees for programmes organized by reputed agencies. Disclosure under the sexual harassment ofwomen at workplace policy (prevention, prohibition & redressal) Act, 2013 The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of the sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. The following is a summary of sexual harassment complaints received and disposed of during FY'17: - No. of Complaints received: 02 - No. of Complaints disposed of: 02 25. Work-Life Balance Your Company continued in its endeavors to ensure work-life balance of its employees. The townships at many work-centers were provided facilities like gymnasiums, music rooms, etc. Outbound programmes with families were also organized at various work-centers. Plays on the importance of 'Work-Life Balance' were staged to create awareness amongst the employees. In addition, cultural programmes involving employees and their families were also conducted. Mahila Samitis and Resident Welfare Associations (RWAs) were involved in the organization of these cultural programs. Your Company has an adventure wing named 'ONGC Himalayan Association' which organizes adventure programmes like mountaineering, trekking, white water rafting, snow skiing, desert safari, aero sports etc. which adds towards morale, engagement, team-spirit, camaraderie, stress management and spirit to explore unknown traits among the employees. 26. Sports Your Company continued its large scale support for development of sports in the country in the form of job offers and scholarships to deserving sportspersons. Sponsorships to various sports associations / federations / sports-bodies to organise sports events as well as develop infrastructure were also extended. Your Company extended support in 23 game disciplines to 166 players on regular rolls and 201 players on scholarship. The support has enabled many sportspersons to achieve and bring home laurels for the nation and the organisation. Some of the key achievements during the year are given below: - Five ONGCians were conferred the prestigious “Arjuna Award” for the year 2016 namely Shiv Thapa (Athletics), Amit Kumar (Wrestling), Sourav Kothari (Cue Sports), Sandeep Singh Maan (Athletics (Para)) and Rajat Chouhan (Archery). - Cricketer Virat Kohli, was conferred the prestigious “Padam Shri Award” for the year 2016. The total number of National Awardees in the organization stand at 31 (Khel Ratna - 1, Padma Shri - 3 & Arjuna - 27) - In Rio Olympics 2016, 7 ONGCians namely Ms. Kavita Raut (Marathon), Ms. M.R. Poovamma (4x400m relay Athlete), Ms. Ashwini Ponnappa (Doubles Badminton), Ms. Heena Sidhu (Shooting), Shiva Thapa (Boxing), Ms. Jisna Mathew (Scholarship 4x400m relay Athlete) and R. Mohan Kumar (Scholarship 4x400m relay Athlete) participated. - Shri Pankaj Advani won 16th world title in cue sports. In the year 2016-17 he won World Billiards title in point format and also in 6 Red Asian Snooker. - Shri Dhruv Sitwala won his 2nd Asian Billiards Title in April 2016. - ONGCian Shri Virat Kohli has been appointed as Indian Cricket team's captain in all match format i.e. Test, One Day & T-20. - Shri Pranaav Jerry Chopra of ONGC won Syed Modi GP Gold Badminton Tournament title in the year 2016-17. - Two Kabaddi players namely Jasvir Singh and Scholarship holder Sandeep Narwal won World cup kabaddi Championship in the year 2016-17. - 5 scholarship players namely Mandeep Singh, Gurjant Singh, Sumit, Simranjeet Singh & Vikramjit Singh secured Gold medal at Junior World Hockey Cup as a member of Indian team in the year 2016-17. - ONGC Scholarship Athlete Ms. Jisna Mathew (400 mt) and Ajay Kumar Saroj (1500mt) won Gold medal in Asian Jr. Athletics Championship in 2016-17. 27. Corporate Social Responsibility (CSR) Your Company as a responsible corporate has always been committed towards creating a conducive environment to bring about an inclusive growth in the society. The Company is fully engaged in ensuring equitable and sustainable growth specially in the area of its operations besides complying with government directives to discharge its social responsibility as a leading Indian corporate. It is for the first time in the history of the company that the CSR expenditure has exceeded Rs.5,000 million and funds required for continuing with some of the Projects in the next fiscal year is Rs.4,010 million. Out of the total CSR budget of Rs.5,356.66 million for the year 2016-17, the expenditure is Rs.5,259 million, which includes, additional overhead expenditure of Rs.87.4 million towards salary of officers/ personnel dealt with CSR on full time basis. This translates to overall utilization of 98.18% of the CSR budget. Rs.97.66 million are unspent during the year FY 2016-17. CSR activities of the company are guided by project based approach in line with the provisions of Companies Act 2013 promulgated by Ministry of Corporate Affairs. Necessary CSR & SD Policy has been framed and put in place in line with Companies Act 2013. A separate report on Corporate Social Responsibility (CSR) activities undertaken by your Company during the FY'17 is enclosed as Annexure 'C'. Reason for non-utilization of CSR budget: Around 98.18 % of CSR budget has been spent during the financial year 2016-17 wherein major PAN India CSR initiatives and work centre specific projects have been implemented successfully. Major flagship CSR projects have a project duration of more than one year with milestone based payment spread in different fiscals. Additionally, a number of CSR projects were in the formulation and approving stage. Against the carry forward budget of Rs.15,209 million from balance of CSR unspent funds of previous years, Rs.7,111.60 million has been committed as on date towards these various ongoing projects and projects under approving stage. Expenditure against these will be met in the financial years 2017-18 onwards. Major emphasis was laid towards taking up various projects under Swachhata Programme and these concerted efforts resulted in an expenditure of Rs.1,542.30 million for such projects during the year 2016-17 across the country. With a view to create health infrastructure the company contributed Rs.801.60 million and Rs.2,001.80 million towards different type of education & skill development related projects. Apart from Health and Education, project worth Rs.748.50 million have been implemented in North Eastern Region, Rs.113.20 million was spent towards projects for empowerment of women and project worth Rs.152.90 million were undertaken for welfare of SC/ST. Board of Directors take pride in reporting the brief details of the important CSR projects implemented during the year 2016-17: (a) Healthcare Initiative: i. Multi-Specialty Hospital at Sivasagar: The 362 bed Multi-Specialty Hospital at, Sivasagar is the largest ever CSR project to be undertaken by your company. The hospital will be developed in three phases at a cost of Rs.3,123.4 million. Dr Babasaheb Ambedkar Vaidyakiya Pratishthan (BAVP) will be the Construction, Operating and Management (COM) partner for this project. MOA has been signed with BAVP on 10th March 2017. The prime objective of the hospital is to provide quality health care services to the people of Northeast at an affordable cost. The charges for treatment will be as low as 70% of the market price and further discount of 50% will be provided to economically disadvantaged people. The phase wise medical facilities and the timeline are as follows: Phase Phase-I Phase-II Phase-III Total Cost (Rs. in million) 990.7 960.5 1,172.2 3,123.4 Number of Beds 100 120 142 362 Medical Facilities Internal Medicine Paediatrics General Surgery ENT Orthopaedic Gynaecology & Obst Pulmonary Medicine Ophthalmology Cardiolog y Cardiac Surgery Gastroenterolog y Nephrology Urology Neurology Neurosurgery Paediatric Surgery Surgical Gastroenterology Plastic & Cosmetic Surgery Renal Transplant IVF Endocrinology Surgical Oncology Medical Oncology Radiation Timeline July 2019 July 2021 July 2023 ii. Varisthajana Swasthya Sewa Abhiyan: This flagship CSR project of the Company has succeeded in providing 1.921 million door step medical treatment to 63797 elderly citizen through Medical Mobile Unit in the operational areas of ONGC in last six years at a cost of Rs.164.5 million. Considering the number of elderly citizen being benefited through this project, 11 new MMUs were initiated in the year 2016-17 in addition to the existing fleet of 20 MMUs for serving the community in the remote areas for the next three years at a cost of Rs.199 million. Help-Age India is the implementing agency for this project. The total amount sanctioned for this project till 31.03.2017 is Rs.363.4 million (for 9 years, since 2010) iii. Lady Goschen Hospital : Your Company has undertaken this CSR initiative for construction of new 'ONGC-MRPL Wing' for Government Lady Goschen Hospital, Mangalore with financial support of Rs.127.8 million. Lady Goschen Hospital was established in 1849, at the heart of Mangalore City. This hospital is exclusively dedicated to the women patient. Women from Karnataka and others areas ofKonkon region are largely dependent on this hospital for their treatment. On an average the hospital had to deal with 500 to 600 deliverer cases. Due to increase inflow of patients there was an urgent need for additional facilities. The new ONGC-MRPL wing of the hospital will address the long standing need of the women patient of the region. The hospital is schedule to be commissioned in August 2017. MRPL has also contributed Rs.88.9 million towards this project. iv. Integrated Muscular Dystrophy Rehabilitation Centre (IMDRC) at Solan: Your Company is supporting Indian Association of Muscular Dystrophy is setting up an Integrated Muscular Dystrophy Rehabilitation Centre' (IMDRC) at Solan, Himachal Pradesh at a cost of Rs.6.6 million. v. Eye-Care Initiative: Your Company has undertaken eye-care initiative for the benefit of both adult and children with two different NGO's namely Anugraha Drishtidan and Praani. While Praani specifically aims at undertaking screening and eye treatment for school going children ofNC R region whereas Anugraha Drishtidan focuses on eye treatment ofadult population near Company's operational area of Assam, Jharkhand and Andhra Pradesh. Through both these programs more than one lakh people have been benefited. The project includes screening, providing medicine, spectacles and cataract operation. vi. Health Care Initiative in Arunachal Pradesh: Your Company is working towards improving the health care facilities in the remote hilly areas of Arunachal Pradesh. In the last one year the Company had provided support for: I. Ambulance, ultra-sound and X-Ray machine for District Government Hospital Ziro II. Ambulance and Medical equipment for Community Health Center, Basar (West Siang) III. Medical equipment and hearse van for Government Hospital Aalo, IV. Ambulance for Govt. hospital Tawang. V. Medical equipment's for District. Govt. Hospital Tezu. The total financial implication for all these project is Rs.16.8 million. vii. Indian Menopause Society: Your Company has supported to Indian Menopause Society towards undertaking Urogynaecological Surgeries. These surgeries were performed by organizing three mobile surgical camps at Herbetpur, Uttrakhand, Raxaul, Bihar and Manali, Himachal Pradesh for the benefit of the underprivileged women who otherwise remain deprived from getting medical facilities. Some of the surgeries which cannot be performed in remote location are operated in a Hospital in Delhi. More than 90 such surgeries are carried out through this project. The total cost of this project is Rs.983 million (b) Promoting education Skill Development and livelihood enhancement Your Company's initiatives promoting education covers a wide range of subject from promoting Sanskrit language to setting up B. Ed. College for improving the literacy rate of Arunachal Pradesh. It has undertaken various projects which contribute towards promotion of education, skill development and enhancement of livelihood. Some of the major initiative in the field of education and skill development are: i. Setting up of B. Ed. College: With an objective to improve the literacy rate of Arunachal Pradesh, your company is setting up a B. Ed. college at Nirjuli, Arunachal Pradesh in association with Vivekanand Kendra Vidyalaya Arunachal Pradesh Trust at a cost of Rs.59 million. The college will be imparting training to more than 200 students in a year in B. Ed. and shall also conduct other in-house training activities. ii. ONGC Super 30: Your Company has set up a Super 30 center at Sivasagar to train 30 aspiring students to get admission in IITs and other premier engineering institutes of our country. Two batch had already completed the course successfully since 2014 with financial implication of Rs.13.2 million The 3rd batch of 30 students for the year 2016-17 is currently undergoing training with the financial implication of Rs.6.33 million. The project is being undertaken in partnership with Center for Social Leadership. iii. Establishment of Indian Institute of Petroleum and Energy (IIPE), Visakhapatnam: In order to establish IIPE, Vizag which will primarily focus on teaching and research in Petroleum and Energy, your company has contributed Rs.600 million to IIPE, Vizag towards corpus/ Endowment fund for establishment of Indian Institute of Petroleum and Energy (IIPE), Visakhapatnam, Andhra Pradesh. iv. Promotion of Sanskrit Language In order to revive the Sanskrit language, your company has taken up this initiative through Sanskrit Promotion Foundation with a total financial implication of Rs.50 million. This project includes development of online tools & tutorials for students, teachers and guardians at formal and in-formal school levels. It also involves workshops, seminars, leadership programme, technology orientation programme, continuous learning programme to the teaching community. Research on Sanskrit education, nationwide survey, and data collection, translation of contemporary literature in Sanskrit including children's literature and editing and publications of rare manuscripts etc., are the other highlights of the project. This Project is a step-forward towards the revival of Sanskrit in India and abroad. v. ONGC's Support for S-VYASA University, Bangalore: Your Company has supported 'Vivekananda Yoga Anusandhana Samsthana' (VYASA) by granting Rs.120 million towards construction of a 350 bed boy's hostel at S-VYASA University campus located at Gidden Halli, Jigani Hobli, Bangalore. The hostel will have all the latest facilities including solar lights, solar heating system, CCTV, lift, interior furniture, electrical, etc. Free accommodation will be provided to ST/SC and Tribal students of S-VYASA University whereas deserving poor students will be given 50% concession vi. Ekal Vidyalaya: Your Company has joined hands with Bharat Lok Shiksha Parishad for reaching remote villages in different parts of the country in order to provide free education to children through 'Ekal Vidyalaya'. The beneficiaries are the poor children in 6 to 14 years age-group who do not have access of education. The classes are being conducted in these Vidyalayas by a local educated youth who has minimum education of metric level and trained by team of experts. This project covers 420 Ekal Vidyalayas in as many villages of rural, tribal and backward areas in 10 states. After the completion of the 1st year in November 2016, the project has entered the 2nd year of implementation. vii. Job Oriented Computer Training and soft skills development for students mainly belonging to the weaker sections of Society: Your Company in association with Bharatiya Vidya Bhavan (BVB) has undertaken a project titled, “Free Job/ Entrepreneurship Oriented Computer education and soft skills development for students mainly belonging to the weaker sections of Society”. This project provides free computer education is through BVB's Gandhi Institute of Computer Education and Information Technology, (GICEIT) at five work centers located at Mehsana, Dehradun, Nazira, Karaikal and Rajahmundry. These centers have been named as “ONGC-GICIET” centers. The project started in the year 2010-11. The total cost of the project is Rs.100 million. During the year 2016-17, an amount of Rs.30 million has been released towards implementation of this project and more than 5500 students have been trained in computer literacy and soft skill through five centers. viii. Green Hub Project: This is an unique initiative to train 20 youth of North East every year in wildlife videography and documentation. The Green Hub project is implemented in partnership with North East Network. The main objective of the project is to create a team of environment enthusiast having expertise in conservation. In the last two year 40 youth has been trained. The Centre has recently been conferred with Manthan Awards in the category of Environment & Green Energy for leveraging the power of youth to conserve biodiversity through a digital platform. The total cost of the project for two years is Rs.3.94 million. ix. ONGC ISKON Skill Development Center: Your Company in partnership with Bhaktivedanta Gurukula and International School, an educational wing ofISKCON has set up a Vocational Education Centre at Ajhai, near Vrindavan, in Mathura at a cost of Rs.80 lakhs. The Company's Centre for Skill development will be exclusively for imparting training in electrician, carpentry (wood), organic grower, hand embroidery and self-tailor. x. Skill Development through CIPET: The project is for job oriented technical skill development training on plastic processing & manufacturing in tool room mechanic operator and injection molding machine operator. 120 no. of youth would be identified through transparent selection procedure who would be trained by CIPET. The youth from the State of West Bengal, Odisha and North Eastern will be benefitted from the project activities. The total cost of the project is Rs.8.28 million. xi. Water Hyacinth Craft: 50 Women of Sivasagar district in Assam are being trained in Water Hyacinth Craft by a team of professional from North East Development Financial Corporation Ltd. Out of the fifty women, 20 women have been selected to undergo advance training program through National Institute of Design, Ahmedabad. All these women will become expert in designing craft made of water hyacinth which are in high demand in North East. The total cost for undertaking this training program is Rs.3.2 million. xii. Skill Development Program for Girls ofJammu & Kashmir: This CSR project is for training of 60 Kashmiri girls of Baramulla region of Jammu & Kashmir in Fashion Designing course through RICHA in association with Chinar 9 Jawan Club (Indian Army). These girls are chosen from Baramulla and nearby areas. The total cost of the project is Rs.1.65 million. The project will be for a period of one year. (c) Adoption of Monuments and iconic places 1. Restoration of Kunds in Varanasi: Your Company has undertaken a flagship initiative for restoration and beautification of four ancient Kunds of Varanasi. Work is in advance stage of progress in three Kunds having historical importance i.e Durga Kund, Lakshmi Kund and Lat Bhairav Kund. An amount of Rs.114.6 million was allocated towards implementation of this project. The project is being undertaken through M/s National Buildings Construction Corporation Ltd. with active support from Nagar Nigam Varanasi. The renovation and beautification of Kunds are near completion. ii. Cleanliness drive at Tirumala Tirupati Devasthanams (TTD), Tirupati: The Company's Board has approved an amount of Rs.149.5 million towards undertaking various cleanliness initiatives at Tirumala, which includes setting up of solid waste management plant, laying pipeline for utilization of recycled water, deployment of eco-friendly vehicle and equipment for waste disposal & cleaning, etc. iii. Beautification of Park near Jantar Mantar: This is a proactive CSR initiative of your Company towards 'Rejuvenation/Beautification of Park adjacent to Jantar Mantar'. The project was implemented through Indian National Trust for Arts and Cultural Heritage (INTACH), Delhi Chapter. The total cost of the project is Rs.7.77 million. iv. Green Rameshwram Project: The 'Green Rameshwram' project is another unique project of your Company implemented in association with Hand in Hand India in 4 wards of Rameshwaram Municipality, Tamil Nadu. The objective of the project is to improve Solid Waste Management System through door-to-door garbage collection, effective waste segregation, waste recycling / processing, using modern technologies like GPS, behavioural change in households / commercial establishments / waste pickers / local bodies through various IEC activities and sustainable financial model through user charges. Your Company has extended financial support of Rs.6.72 million for two years. (d) Ensuring Environmental Sustainability and Ecological Balance i. Eastern Swamp Deer Conservation project: Your Company implemented the project for conservation of Eastern Swamp Deer in Kaziranga in partnership with Wild Life Trust of India and Department of Environment & Forest, Govt. of Assam. Currently, the project is in the third phase of implementation. After the initial research work undertaken in the first phase to understand the habitat and different traits of Eastern Swamp deer, 19 Swamp Deers were translocate to Manas National Park from Kaziranganga National Park in the second phase. In Phase III another 17 eastern deer swamp deer were trans-located from Kaziranga National Park in the month of Feb 2017 to Manas National Park, creating an alternate breeding ground for the Eastern Swamp Deer other than Kaziranga National Park. An amount of Rs.22.65 million, has been sanctioned towards implementing the three phases of this project. ii. Statue of Unity at Gujarat: The project aims at building 182 meters (392 feet) tall, the World Largest Statue of Sardar Vallabhbhai Patel at the Sadhu Bet Island, approximately 3.5 kms south of Sardar Sarovar Dam at Kevadia in the Narmada district of Gujarat. The monument will have development oriented Initiatives like Development of banks of River Narmada up to Bharuch, Clean Technology Research Park & Agriculture Training Centers, Schools, colleges and universities for tribal development, Education Research Centre and Knowledge City etc. The project activities will boost tourism and facilitate development in the surrounding tribal areas. Your Company has supported 'Sardar Vallabhbhai Patel Rashtriya Ekta Trust' with financial support of Rs.500 million towards this project. iii. Pradhan Mantri Ujjwala Yoj ana (PMUY): This project is being implemented as per the directives of Ministry of Petroleum & Natural Gas (MoPNG) wherein your company has contributed 20% of its CSR budget for providing new LPG connection to BPL families free of cost. This project aims at environment sustainability and social upliftment by providing smokeless clean fuel in rural/underserved areas so that standard of life in rural areas improves and dependency on fire wood reduces in these areas of the country. In the year 2016-17 your Company has contributed Rs.1,071.3 million towards this initiative, which has been implemented by IOCL. iv. Ringal Plantation in Upper Himalayas: Your Company being responsible organization for protection of environment has always given great importance to tree plantation not only at its operational work areas but also in the areas outside its work center, with emphasis on survival ofplanted saplings. Your Company undertook an initiative for tree plantation in Uttarakhand on a proposal submitted by Uttaranchal Bamboo and Fiber Development Board (UBFDB), an autonomous organization under the Forest Department, Govt. of Uttarakhand. This plantation drive had carbon sequestering potential, water recharge and soil conservation capacity. It has provided livelihood to rural community of Uttaranchal living at 5000 - 6000 feet above sea level. Till 31.03.2017 plantation is done in 430 hectares resulting in 1.97 million tonnes of CO2 fixation/annum. v. Harit Moksha: Green Cremation System: This is a unique CSR initiative of your company undertaken with Mokshda Paryavaran Evam Van Suraksha Samiti (MPEVSS) to reduce wood consumption during traditional cremations through Mokshda Green Cremation Systems (MGCS). The ongoing project commenced in 2010 includes installing 30 units of green cremation system in 8 cities of7 different states with a budget of Rs.91.9 million. The project was successfully completed and helped in saving approximately 13,700 tonnes of wood & reduced 26,500 tonnes of GHG emissions annually till date. Considering the impact of this project, 4 new units has been approved in FY 2016-17, for installation of one unit at Pilhibit and 3 unit at Delhi at a cost of Rs.13.8 million. vi. Solar Lights: More than 4900 numbers of Solar Street Lights have been installed in the states of Andhra Pradesh, Rajasthan, Gujarat, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttrakhand and Jharkhand availing services of MNRE Channel partners empanelled under rate contract at a total financial implication of Rs.98.2 million. e. Swachh Bharat Abhiyan i. Information, Education, Communication program: Your Company is the only company to initiate Information, Education, Communication (IEC) activities in 5592 school across India. After the successfully completing the construction of toilets under Swachh Vidhyalaya Abhiyan , the Company has taken a step forward by carrying out School Led Total Sanitation (SLTS) initiative through Aroville Foundation in all 5592 school across India. The project aims at the behavioural and habitual changes among the students and local public. An amount of Rs.70 million is earmarked towards implementing this project. Operation & Maintenance of the school toilets through community/ parents, teachers association has been established in 3003 schools by 31.03.2017 and efforts are under progress in other schools. ii. Open Defecation Free Initiative: Your Company has undertaken an initiative for making villages near its operation area Open Defecation Free (ODF). In the last one year more than 3540 Individual House Hold Latrine (IHHL) had been constructed in the operational areas at cost of Rs.64.2 million. Besides project worth Rs.106.8 million has been approved for construction of 7749 IHHL in Assam. iii. Swachhata Initiative of ONGC reaches Himalaya: Your Company is one of the first company to take the Swachh Bharat initiative to the Himalaya. The project is implemented in partnership with Indian Mountaineering Foundation (IMF) through which tons of garbage's are brought down from the high altitude mountain ranges of Uttarakhand. Specialized trained mountaineers are engaged to carry out this task. In the last two years the Company had undertaken the following Swachhata initiative in different mountain ranges of the Himalayas with IMF at a cost of Rs.5.22 million. (Rs. in Million) Duration Mountain Ranges covered Project cost (Rs.) Aug -Sept 2015 Peak Stok Kangri in Ladakh, Shigri Glacier Region, Spiti Valley, Tapovan, Gangotri Region, Pindari Area in Uttarakhand Himalaya 1.82 May 2016 and Oct 2016 Gaumukh, Tapovan, Nandanvan and Gangotri 1.44 Jan-Feb 2017 Chanshal Valley, Dhauladhar Range, Yamunotri, Anini / Mechuka (Arunachal Pradesh) 1.96 iv. Community Toilets at Dharavi: To address the sanitation problem in the slums of Dharavi (Mumbai), your Company has implemented a project for construction of five community toilets at a cost of Rs.7.72 million. This project is being implemented through Sulabh International Social Service organization. v. Mobile Water ATM: This project is for provision of clean drinking water for the local population and tourists of Lucknow through Mobile Water ATM. The project has a dual benefit. First, the project has helped in provision of clean and safe drinking water for the local population and tourists in Lucknow. Secondly, the project has helped 7 Person with Disability (PwD) earn livelihood by operating these Mobile Water ATM. All seven mobile water ATM's are operated by PwD, who collect the water from a centralized RO plant and sell them to on-the-go commuters in various location of Lucknow at a very nominal cost. The project is undertaken in association with Margdarshak at a cost of Rs.1.97 million. Decentrik Technologies (DT) who has developed this innovative Water ATM technology is the technical service provider of the project. vi. Deep Water Tube Wells: The project for installation of six deep water tube well through National Consumer Cooperative Federation in six different locality of Kamrup district of Assam in under implementation. The locations has been identified in consultation with district administration where there is acute problem of clean drinking water. vii. Hand Pumps: More than 400 hand-pumps are installed across different location of the country. The project locations are identified based on need, where there is scarcity of drinking water. An amount of Rs.23.6 million has been earmarked for installation of these hand pumps. f. CSR initiatives exclusively for benefit of SC-ST and tribal population: Efforts have always been made by your company towards identification and implementation of CSR projects meant exclusively for the benefit of SC-ST in the country. Implementation of such projects has never been restricted to operational areas of the Company alone. Project worth Rs.152.9 million are implemented during the year 2016-17 for the same. Besides, as per the bilateral understanding with AISCSTEWA, an amount of Rs.155 Million is allocated towards 1000 merit scholarship for a period of 4 years commencing from 2016-17 exclusively for the benefit of students belonging to ST/SC. Some of the other major CSR initiative for the benefit of SC/ST and Tribal community are: i. Development of Model Village at Korbongpara: In Tripura, your company in partnership with Tripura Engineering Society (TES) has contributed towards development of Model Village at Karbongpara under Champabari ADC village ofJirania Block, West Tripura District with a total project cost of Rs.6.6 million. The Karbong community of Tripura with 120 inhabitants and low literacy rate is on the verge of extinction. They are deprived of basic needs and belong to the weakest section of society. Under this project, it is planned to develop the said village into a selfsustained model village which includes developing the infrastructural facilities like community centre, sanitation, drinking water facilities, irrigation, market shed, internal road connectivity, education, healthcare, income generation to support the livelihoods. ii. Multi-Purpose Skill Development and Community Centre at Natun Jelom: Your Company, under Sansad Adarsh Gram Yojna supported for construction of Multipurpose Skill development and community center at Natun Jelom, Jonai in Dhemaji district of Assam at a cost of Rs.4 million. More than 98% of Natun Jelom population belongs to ST community. iii. Infrastructure development of Rongagora Junior College: This project was implemented under ST/SC component plan for construction of Rongagora Junior college at Golaghat at a cost of Rs.2.69 million. iv. Construction of Community Hall and Schools: Your Company has supported construction of three community center, one school building, 12 unit of school toilets and 8 teachers quarter at West Siang District of Arunachal Pradesh at a cost of Rs.10.4 million. The majority of the population of these villages belongs to ST community. v. Infrastructure development of school and hostel: Your Company in partnership with Kalyan Ashram Tripura has undertaken an initiative for construction of Ratnamani Sishu Siksha Niketan School and hostel building at Kanchancherra, Tripura with an estimated cost of Rs.3.5 million which will provide hostel facilities to the tribal students and access to healthy educational environment. g. Promotion of Sports: i. Chau Lung Syukapha Indoor Stadium. The Chau Lung Syukapha Indoor Stadium, constructed in Sivasagar with funding from your company is one of the major sports infrastructure development project undertaken under CSR. The stadium is constructed at a cost of Rs.15.2 million, which is going to help the budding young sportsmen of Sivasagar and other district of Assam. ii. Training of Indian Wrestlers: Your Company has contributed Rs.11.5 million to Wrestling Federation of India towards development of wrestling in India. 28. Accolades Consistent with the trend in preceding years, your Company, its various operating units and its senior management have been recipients of various awards and recognitions. Details of such accolades are placed at Annexure- 'D'. 29. Directors' Responsibility Statement Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, with respect to Directors' Responsibility Statement, it is hereby confirmed that: (i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same; (ii) The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as on 31st March, 2017 and of the profit of the Company for the year ended on that date; (iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) The Directors have prepared the annual accounts of the Company on a 'going concern' basis. (v) The Directors have laid down internal financial controls which are being followed by the company and that such internal financial controls are adequate and are operating effectively. (vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating. 30. Corporate Governance Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by various stakeholders. The practices emanate from the need to position multi-layered checks and balances at various levels to ensure transparency of its operations in the decision making process. In terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, a report on Corporate Governance for the year ended March 31, 2017along with a certificate from the Company's Statutory Auditors confirming compliance of conditions forms part of this report. Your Company has implemented the mandatory Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance to the maximum extent possible. Your Company has formulated and uploaded the following policies/codes on its website in line with the Companies Act, 2013 and Listing Regulations: (a) Code of Conduct for Board Members and Senior Management Personnel (b) Related Party Transactions - Policy & Procedures, 2014 (c) Material Subsidiary Policy (d) The Code of Internal Procedures and Conduct for prohibition of insider trading in dealing with the securities of ONGC (e) Corporate Policy on Materiality for Disclosure of events to the Stock Exchanges (f) Corporate Policy on Preservation of Documents and their archiving (g) Policy for Training of Directors (h) Dividend Distribution Policy In line with global practices, your Company has made available all information, required by investors, on the Company's corporate website www.ongcindia.com In line with the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, your Company has also implemented other measures of Corporate Governance (mandatory/voluntary) which have been brought out in the Corporate Governance Report and are as follows: i. Whistle Blower Policy/ Vigil Mechanism: A total of 40 Protected Disclosures till 31.03.2017 have been processed through the Whistle Blower mechanism of your Company which was implemented from December 01, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is applicable to all employees of the Company and has been uploaded on the intranet of the Company. In addition, the Company has a full-fledged Vigilance Department, which is headed by Chief Vigilance Officer who holds the rank of a Functional Director of the Company. With a view to maintain his independence, the CVO reports to the Chief Vigilance Commissioner of the Government of India. ii. Enterprise-wide Risk Management (ERM) Framework: In line with the requirements of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, your Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM) Policy throughout the organization. The Audit & Ethics Committee periodically reviews the risk assessment and minimization process in ONGC. The Risk Management policy of your Company is as follows: “ONGC shall identify the possible risks associated with its business and commits itself to put in place a Risk Management Framework to address the risk involved on an ongoing basis to ensure achievement of the business objective without any interruptions. ONGC shall optimize the risks involved by managing their exposure and bringing them in line with the acceptable risk appetite of the Company” iii. Meeting of Independent Directors: Four Meetings of Independent Directors were held during FY'17. iv. Certificate of Independence by Independent Directors: The Independent Directors have submitted declaration that they meet the criteria of Independence as per section 149(6) of the Companies Act, 2013. 31. Statutory Disclosures Your Directors have made necessary disclosures, as required under various provisions of the Act and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Extract of Annual Return As per requirement of section 92(3) of the Companies Act, 2013, the extract of the annual return in form MGT-9 is placed at Annexure-E. Particulars of Employees Your Company being a Government Company, the provisions of section 197(12) of the Companies Act, 2013 and relevant Rules do not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs. The terms and conditions of the appointment of Functional Directors are subject to the applicable guidelines issued by the Dept. of Public Enterprise, Government of India. The salary and terms and conditions of the appointment of Company Secretary, a KMP of ONGC, is in line with the parameters prescribed by the Government of India. 32. Energy Conservation The information required under section 134(m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure - 'F'. 33. Audit And Ethics Committee In compliance with section 177(8) of the Companies Act, 2013, the details regarding Audit & Ethics Committee is provided under Corporate Governance report which forms part of this Annual Report. There has been no instance where the recommendations of the Audit & Ethics Committee have not been accepted by the Board of Directors. 34. Auditors The Statutory auditors of your company are appointed by the Comptroller & Auditor General of India (C&AG) M/s. Dass Gupta & Associates, New Delhi, M/s. M K P S & Associates, Mumbai, M/s. Lodha & Co., Kolkata, M/s. PKF Sridhar & Santhanam LLP, Chennai, M/s. Khandelwal Jain & Co., Mumbai and M/s. K C Mehta & Co., Baroda Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2016-17. The statutory auditors have been paid a total remuneration of Rs.43.41 million (previous year Rs.26.39 million) towards audit fees, certification and other services. The above fees are inclusive of applicable service tax but exclusive of re-imbursement of reasonable travelling and out of pocket expenses actually incurred. 35. Auditors' Report on the Accounts The comments of Comptroller & Auditor General of India (C&AG) form part of this Report and is attached as Annexure 'G'. There is no qualification in the Auditors Report on the Financial Statements of the Company. 36. Secretarial Audit In terms of section 204(1) of the Companies Act, 2013, the Company has engaged M/s P P Agrawal & Co., Company Secretaries in whole-time practice, as Secretarial Auditors for conducting Secretarial Compliance Audit for the financial year ended 31st March, 2017. The report has been annexed and forms part of the Annual report. 37. Cost Audit Six firms of Cost Accountants were appointed as Cost Auditors for auditing the cost accounts of your Company for the year ended 31.03.2017 by the Board of Directors. The Cost Audit Report for the year 2015-16 has been filed under XBRL mode on 23.09.2016 which was well within the due date of filing. 38. Directors Policy On Directors' Appointment Etc. Your Company being a Government Company, the provisions of section 134(3) (e) of the Companies Act, 2013 do not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs. Performance Evaluation The provisions of Section 134(3)(p) of the Companies Act, 2013 relating to evaluation of Board/ Directors do not apply to your Company since necessary exemptions are provided to all government companies. Further, similar exemption is awaited from SEBI under the provisions of Listing Regulations - 2015. Appointments / Cessation Etc Since the 23rd Annual General Meeting held on 08.09.2016, Shri Deepak Sethi, Shri Vivek Mallya, Shri Sumit Bose were inducted as Independent Directors of the Company with effect from 31.01.2017 and Dr. Santrupt B. Misra was inducted as Independent Director of the Company with effect from 06.02.2017. Shri A. P. Sawhney, Additional Secretary, MoP&NG, Government Nominee Director ceased to be Director on the Board of the Company w.e.f. 23.06.2017. The Board places on record its appreciation for his contribution during his tenure. Shri Rajiv Bansal, Additional Secretary, MoP&NG, joined the Board as Government Nominee Director on 10.08.2017 in place of Shri A. P. Sawhney. The strength of the Board of Directors of the Company is 16 comprising 7 Executive Directors (Functional Directors including CMD) and 9 Non-Executive Directors including two Government Nominees and seven Independent Directors. Ministry of Petroleum & Natural Gas has been requested to appoint requisite number of independent Directors including a woman Director to comply with the provisions of Companies Act, 2013 and Listing Regulations. A total of 13 meetings of the Board of Directors of ONGC were held during FY'17. Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of the Companies (Accounts) Rules, 2014: Shri M. E. V. Selvamm took over as Company Secretary on 01.06.2017 in place ofShri V. N. Murthy who superannuated on 31.05.2017. 39. Acknowledgement Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Statutory Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation. Your Directors thank all share-owners, business partners and all members of the ONGC Family for their faith, trust and confidence reposed in the Board. Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel. On behalf of the Board of Directors Place: New Delhi (Dinesh K Sarraf) Date: 21.08.2017 Chairman & Managing Director

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Mar 31, 2016

Notice is hereby given that the 23''" Annual General Meeting of the Members of OIL AND NATURAL GAS CORPORATION LIMITED will be held on Thursday, the 8''ⁿ September, 2016 at 10:00 hrs. at, Indira Gandhi Indoor Stadium I. P Estate, Near Rajghat, Grand Trunk Road, New Delhi-110002 to transact the following business:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Financial Statements including Consolidated Financial Statements of the Company for the financial year ended on 31st March, 2016, together with the Board''s Report and the Auditors'' Report thereon and Comments of the Comptroller & Auditor General of India, in terms of Section 143(6) of the Companies Act. 2013 and the reply of the Management there to.

2. To confirm the payment of two interim dividends and declare final dividend on equity shares for the FY 2015-16.

3. To appoint a Director in place of Shri T K Sengupta, who retires by rotation and being eligible, offers himself for re-appointment.

4. To authorize Board of Directors of the Company to fix the remuneration of the Joint Statutory Auditors of the Company for the Financial Year 2016-17, in terms of the provisions of section 139(5) read with section 142 of the Companies Act, 2013 and to pass the following resolution, with or without modification(s). as an Ordinary Resolution:

"RESOLVED THAT the Board of Directors of the Company be and are hereby authonsed to decide and fix the remuneration of the Joint Statutory Auditors of the Company for the Financial Year 2016-17, as may be deemed fit by the Board".

SPECIAL BUSINESS:

ITEM No. 5

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

"RESOLVED THAT Shri A K Srinivasan (DIN-07168305) who was appointed as an Additional Director and designated as Director (Finance) under Section 161 of the Companies Act, 2013, effective 23"’ September, 2015 and holds office up to the 23''^fl Annual General meeting and the Company having received a notice in writing, under Section 160 of the Companies Act, 2013, from Shri A K Srinivasan proposing his candidature for the office of director, be and is hereby appointed as a Director of the Company, liable to retire by rotation ITEM No. 6

To consider and if thought fit, to pass with or without modification(s). the following resolution as an Ordinary Resolution:

"RESOLVED THAT Shri Ajai Malhotra (DIN-07361375) who was appointed as an Additional Director (part-time non-official Director) under Section 161 of the Companies Act, 2013, effective 20* November, 2015 and holds office up to the 23"’ Annual General meeting and in respect of whom, the Company has received a notice in writing, under Section 160 of the Companies Act, 2013, from a member proposing his candidature for the office of director, be and is hereby appointed as a Director of the Company."

ITEM No. 7

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

- RESOLVED THAT Prof. S B Kedare (DIN- 01565171) who was appointed as an Additional Director (part-time non-official Director) under Section 161 of the Companies Act, 2013, effective 20" November, 2015 and holds office up to the 23" Annual General meeting and In respect of whom, the Company has received a notice in writing, under Section 160 of the Companies Act, 2013, from a member proposing his candidature for the office of director, be and is hereby appointed as a Director of the Company." ITEM No. 8

To consider and if thought fit, to pass with or without modification(s). the following resolution as an Ordinary Resolution: "RESOLVED THAT Shri K M Padmanabhan (DIN-00254109) who was appointed as an Additional Director (part-time non-official Director) under Section 161 of the Companies Act, 2013, effective 20'' November, 2015 and holds office up to the 23''° Annual General meeting and in respect of whom, the Company has received a notice in writing, under Section 160 of the Companies Act, 2013, from a member proposing his candidature for the office of director, be and is hereby appointed as a Director of the Company."

ITEM No. 9

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

“RESOLVED THAT Shri A P Sawhney (DIN-03359323) who was appointed as an Additional Director (Govt Director) under Section 161 of the Companies Act, 2013. effective 2“’ January 2016 and holds office up to the 23''" Annual General meeting and the Company having received a notice in writing, under Section 160 of the Companies Act, 2013, from a member proposing his candidature for the office of director, be and is hereby appointed as a Director of the Company, liable to retire by rotation."

ITEM No. 10

To consider and if thought fit, to pass with or without modification(s). the following resolution as an Ordinary Resolution: “RESOLVED THAT Shri Amar Nath (DIN-05130108) who was appointed as an Additional Director (Govt Director) under Section 161 of the Companies Act, 2013, effective 28''" June, 2016 and holds office up to the 23''* Annual General meeting and the Company having received a notice in writing, under Section 160 of the Companies Act, 2013, from a member proposing his candidature for the office of director, be and is hereby appointed as a Director of the Company, liable to retire by rotation."

ITEM No. 11

To consider and if thought fit, to pass, with or without modifications, the following resolution as an Ordinary Resolution:

"RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions of the Companies Act, 2013 and Rule 14(a)(ii) of the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or reenactment thereof, for the time being in force), the aggregate remuneration of Rs,3.25 lakhs per Cost Auditor plus applicable taxes and out of pocket expenses payable to the six Joint Cost Auditors appointed by the Board of Directors of the Company, to conduct the audit of the cost records of the various units of the Company for the financial year ending March 31, 2017, be and is hereby ratified.”

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE PROXY FORM DULY COMPLETED MUST BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN FORTY-EIGHT HOURS (48 HRS.) BEFORE THE COMMENCEMENT OF THE MEETING. BLANK PROXY FORM IS ATTACHED. A PERSON CAN ACT AS A PROXY ON BEHALF OF MEMBERS NOT EXCEEDING 50(FIFTY) MEMBERS AND HOLDING IN AGGREGATE NOT MORE THAN TEN PERCENT OF THE TOTAL SHARE CAPITAL OF THE COMPANY. PROXIES SUBMITTED ON BEHALF OF LIMITED COMPANIES, SOCIETIES ETC MUST BE SUPPORTED BY APPROPRIATE RESOLUTION/ AUTHORITY, AS APPLICABLE.

2. Relevant Explanatory Statement pursuant to Section 102(2) of the Companies Act, 2013, in respect of Special Business, as set out above is annexed hereto.

3. Brief profile of the Directors seeking appointment/reappointment as mandated under regulation 36(3) of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 with the Stock Exchanges forms part of the Notice. The directors have furnished consent/declaration for their appointment/ re-appointment as required under the Companies Act, 2013 and the Rules there under.

4. The Register of Members and Share Transfer Books of the Company will remain closed from Friday, the 2"° September, 2016 to Thursday, the 8"'' September, 2016 (both days inclusive).

5. The Board had recommended a final Dividend of Rs, 3.25 per equity share of Rs,5/- each fully paid up. at its meeting held on 26"* May, 2016. The dividend, if approved by the Members at the said Annual General Meeting, will be paid within a period of 30 days from the date of declaration, to the members whose names appear on the Register of Members of the Company after giving effect to all valid share transfers in physical form lodged with the Company on or before Thursday, the 1" September, 2016 and to the respective Beneficial Owners as at the close of business hours on Thursday, the 1"'' September, 2016, as per details thereof to be furnished by the depositories.

6. The Register of Directors and Key Managerial Personnel and their shareholding maintained under Section 170 of the Companies Act. 2013 will be available for inspection by the members at the AGM venue.

7. The Register of Contracts or arrangements in which the Directors are interested, maintained under Section 189 of the Companies Act, 2013 will be available for inspection by the members at the AGM venue.

8. It may be noted that M/s. Alankit Assignments Ltd., Alankit Heights, IE/13 Jhandewalan Extension, New Delhi - 110055 has been appointed as Registrar and Share Transfer Agent of the Company during February, 2016, in place of Karvy Computershare Pvt Ltd. Therefore, share transfer documents and all correspondence relating thereto, must be addressed to M/s. Alankit Assignments Ltd (Alankit), Alankit Heights, 1 E/13 Jhandewalan Extension, New Delhi-110055 Tel: [phone]/1960, Fax: [phone], www.alankit.com, [email protected]. Alankit is also the depository inter face of the Company with both NSDL and CDSL. However, keeping in view the convenience of the Shareholders, documents relating to shares will continue to be accepted at the Registered Office of the Company at 8th Floor, Jeevan Bharati Building, Tower-ll, 124, Indira Chowk, New Delhi - 110001, Phone No.011-23301277/23301299; e-mail: [email protected].

9. The Company has designated an exclusive e-mail ID called [email protected] for redressal of shareholders''/investors’ complaints/grievances. In case you have any queries/complaints or grievances, then please write to us at the above e-mail address.

10. Members holding shares in electronic form may please note that the bank account details and 9-digit MICR Code of their Bankers, as noted in the records of their depository, shall be used for the purpose of remittance of dividend through Electronic Clearing Service (ECS), or for printing on dividend warrants, wherever applicable. Members are, therefore, requested to update their bank account particulars, change of address and other details with their respective Depository Participants for shares held in demat mode and to the Registrar and Share Transfer Agent for shares held in physical form.

11. Reserve Bank of India (RBI) is providing ECS facility for payment of dividend in select cities. Members holding shares in physical form are advised to submit particulars of their bank account, viz., names and address of the branch of the bank, 9 digit MICR code of the branch, type of account and account number latest by 1" September, 2016 to M/s Alankit Assignments Ltd.

12. Pursuant to Section 124(5) and 125(2)(c) of the Companies Act, 2013, the Company has transferred the unpaid/unclaimed amount of final dividend declared on 19th September, 2008 for the financial year 2007-08 and interim dividend declared on 19th December, 2008 for the financial year 2008-09, to the Investor Education and Protection Fund of the Central Government. The unpaid/unclaimed amount of Final Dividend declared on 23''° September 2009 and Interim Dividend declared on 18* December 2009 will be transferred to the Investor Education and Protection Fund (IEPF) of the Central Government by 22"⁹ October, 2016 and 17" January, 2017 respectively. Members who have not encased their dividend warrants pertaining to the said years may approach the Company or its Registrar & Share Transfer Agent for obtaining payment thereof.

13. In order to avoid the incidence of fraudulent encashment of dividend warrants, the Members holding shares in physical form are requested to provide their Bank Account Number, Name and Address of the Bank/Branch to the Company or RTA to enable them to incorporate the same in the dividend warrant,

14. Members who have not encased their dividend warrants within its validity period may write to the Company at its Registered Office or M/s Alankit, Registrar & Share Transfer Agent of the Company, for revalidating the warrants or payment in lieu of such warrants in the form of demand draf t.

15. The Annual Report 2015-16 is being sent by electronic mode to those members whose email addresses are registered with the Company/ Depositories/RTA, unless any member has requested for a physical copy of the same. For members, who have not registered their email addresses, physical copies are being sent by the permitted mode.

16. In compliance with the provisions of section 108 of the Act, the Rules made there under and Regulation 44 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Members are provided with the facility to cast their vote electronically, through e-voting services provided by Alankit through M/s National Securities Depositories Ltd(NSDL), on all resolutions set forth in this Notice. The instruction for e-voting are annexed to the notice. The notice of 23Annual General Meeting along with the Proxy Form and attendance slip is being sent by electronic mode to those members whose email addresses are registered with the Company/ Depositories/RTA, unless any member has requested for a physical copy of the same. For members, who have not registered their email addresses, physical copies are being sent by the permitted mode. The facility for voting through ballot paper, will also be made available at the AGM and the members attending the AGM who have not cast their vote by remote e-voting shall be able to exercise their right at the AGM through ballot papers. Members who have cast their vote by remote e-voting prior to the AGM, may attend the AGM but shall not be entitled to cast their vote again.

17. In terms of Section 72 of the Companies Act, 2013, nomination facility is available to individual shareholders. Members holding shares in physical form may nominate a person in respect of all the shares held by them whether singly or jointly. Members who hold shares in individual name are advised to avail of the nomination facility by filing Form No. SH-13 in their own interest. Blank form can be obtained from M/s Alankit Assignments Ltd. on request. Members holding shares in dematerialized form may contact their respective DPs for registration of nomination.

18. Members holding physical shares in multiple folios in identical names are requested to send their share certificates to Company''s Registrar and Share Transfer Agent, M/s Alankit Assignments Ltd. for consolidation.

19. Pursuant to Section 139(5) read with Section 142 of the Companies Act. 2013, the Auditors of a Government Company are appointed or re-appointed by the Comptroller and Auditor General (C8AG) of India and their remuneration is to be fixed by the Company in the Annual General Meeting. The members may authorize the Board to fix up an appropriate remuneration of Auditors for the year 2016-17 after taking into consideration the increase in volume of work and prevailing inflation etc.

20. Members are requested:

i) to bring their copies of Annual Report and Attendance Slip duly completed and signed at the meeting.

ii) to quote their Folio/DP & Client identification No. in all correspondence.

iii) Not to bring brief case, bags, eatables, cell phone etc. as they are prohibited inside the meeting hall for security reasons.

iv) lo notify immediately any change of their address and bank particulars to the Company or its Share Transfer Agent, in case shares are held in physical form.

AND

In case their shares are held in dematerialized form, information should be passed on directly to their respective Depository Participants and not to the Company/Share Transfer Agent, without any delay.

v) to note that no gift will be distributed at the meeting.

21. Shareholders of the Company are requested to register their e-mail ID(if not registered with their Depository Participant) with M/s. Alankit Assignments Ltd, R&T Agent of the Company by sending a written request duly signed by the shareholder or email to [email protected] for sending electronic communication to their registered e-mail. Please ensure that you have indicated your Folio No. / DP & client ID No as well as your consent to receive future communications from ONGC including Annual Reports etc through email at your registered email address.

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013 Item No.5

APPOINTMENT OF SHRI A K SRINIVASAN

Shri A K Srinivasan was appointed as an Additional Director designated as Director (Finance) on 23.09.2015. In terms of Section 161 of the Companies Act, 2013, he holds office up to the 23''^c Annual General meeting of the Company. The Company has received a notice in writing from him pursuant to the provisions of Section 160 of the Companies Act. 2013 along with the requisite fees, signifying his intention to propose himself as candidate for the office of Director. Shri A K Srinivasan, if appointed, will be liable to retire by rotation under Sections 152 of the Companies Act, 2013 and in terms of provisions under the Articles of Association of the Company.

Born on 08.10.1957, Shri Srinivasan, an IIM Bangalore alumnus, is an accomplished finance professional with experience of over 31 years in upstream oil and gas finance. He started his professional journey with ONGC as a graduate trainee in the year 1983 and has demonstrated his professional capability in diverse facets of financial planning and management with the energy major. With experience in the capital markets, project financing & contracts, corporate budgeting & planning, corporate accounting, corporate taxation and dispute resolution. Shri Srinivasan has a broad array of expertise up his sleeves and has played major role in the acquisition of various oil and gas development projects, Power, Petro-Chemical and capital assets for ONGC. He has also steered critical productivity enhancement projects like the transition from excel based reporting to SAP based reporting and implementation of Enterprise Resource Planning (ERP) projects across ONGC.

Shri A K Srinivasan holds directorship on the Board of ONGC Petro addition Ltd. and ONGC Tripura Power Company Ltd. He holds 5,752 equity shares in ONGC.

Except Shri A K Srinivasan, none of the Directors, Key Managerial Personnel and their relatives is interested or concerned in the resolution.

The Board of Directors considers that in view of the background and experience of Shri A K Srinivasan, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval.

Item No.6

APPOINTMENT OF SHRI AJAI MALHOTRA

Shri Ajai Malhotra was appointed as an Additional Director (part-time non-official Director) under Section 161 of the Companies Act, 2013, effective 20'' November, 2015. Shri Ajai Malhotra shall hold office up to the 23rd Annual General meeting and shall be eligible for appointment to the office of Director thereon. The Company has received a notice from a member proposing his candidature for the office of Director along with requisite fees. Shri Ajai Malhotra, if appointed, will not be liable to retire by rotation under Sections 152 of the Companies Act. 2013..

Born on 21.11.1953, Shri Malhotra holds an M.A. in Economics from The Delhi School of Economics, University of Delhi. He joined the Indian Foreign Service (IFS) in 1977 and besides assignments at the Ministry of External Affairs, New Delhi, worked ai Indian diplomatic missions in Bucharest, Geneva, Kuwait, Moscow, Nairobi, New York and Washington DC.

He was Minister (Commerce) at the Embassy of India, Washington DC (1999-2003), serving simultaneously from 2002-2003 as Chairman of the International Cotton Advisory Committee. He was Ambassador of India to Romania, concurrently accredited to Albania and Moldova (2003-2005), Ambassador and Deputy Permanent Representative of India to the United Nations, New York (2005-2009), Ambassador of India to Kuwait (2009-2011), and Ambassador of India to the Russian Federation (2011 -2013), before retiring from the IFS on November 30, 2013, after nearly 37 years of distinguished service.

His wide ranging experience includes being on the Indian team negotiating issues such as biological diversity, climate change, desertification, education, energy, forestry, health, human rights, human settlements, intellectual property rights, international law. labour, ozone depletion, sustainable development and international trade. In 2004, he was awarded an Honorary Doctorate by Western University of Arad, Romania, in recognition of his work in support of environment and development.

He is presently a Distinguished Fellow at The Energy and Resources Institute (TERI), New Delhi, besides being Chairman and Managing Trustee of two organizations serving the underprivileged - CHIKITSA and SHIKSHA - as well as Chairman, Nehru Trust for the Indian Collections at the Victoria & Albert Museum, and Chairman, NAB Centre for Blind Women & Disability Studies. He frequently contributes to seminars on economic, environmental, defense, political, trade and security issues.

Shri Ajai Malhotra holds directorship in Aicorps Enterprises Pvt. Ltd.

He holds 1,100 equity shares of ONGC.

Except Shri Ajai Malhotra, none of the Directors, Key Managerial Personnel and their relatives is interested or concerned in the resolution.

The Board of Directors considers that in view of the background and experience of Shri Ajai Malhotra, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval.

Item No.7

APPOINTMENT OF PROF S B KEDARE

Prof. S B Kedare was appointed as an Additional Director (part-time non-official Director) under Section 161 of the Companies Act. 2013, effective 20th November, 2015. Prof S B Kedare shall hold office up to the 23''° Annual General meeting and shall be eligible for appointment to the office of Director thereon. The Company has received a notice from a member proposing his candidature for the office of Director along with requisite fees. Prof S B Kedare, if appointed, will not be liable to retire by rotation under Sections 152 of the Companies Act, 2013.

Born on 22.10.1963, Prof. Kedare has obtained his B.Tech. in Mechanical Engineering from IIT Bombay in 1985. He also obtained his Ph.D. in 1992 from IIT Bombay in Reciprocating Wind Machine". He spent three years (1992-95) as a volunteer in social sector working on dif ferent issues related to ‘Development''. He started his engineering consultancy in energy and environment in 1995. He worked as a Technical Consultant (1998-2001) to the Chairman, Khadi and Village Industries Commission when he worked on the issues related to Development of Rural Industries

Clusters. He is presently associated with IIT Bombay as a Professor.

He joined Department of Energy Science and Engineering, IIT Bombay as an adjunct faculty and simultaneously Clique Developments Ltd., an engineering Company in Mumbai as its Director (R&D). Based on his studies on different renewable energy systems, he identified a need for developing concentrating solar thermal collectors for industrial process heat applications way back in 1997. He acted as a Principal Investigator (2004 to 2007) under IIT Bombay-Clique R&D project of ARUN 160 (160 sq.m Fresnel Paraboloid Solar Concentrator for industrial process heat) sponsored by MNRE (Ministry of New and Renewable Energy), New Delhi, He has also worked on integration of solar concentrator technology for a variety of industrial processes as well as commercial applications using steam, pressurized water or thermal fluid as media and for steam augmentation in thermal power plants.

Along with optimization of Solar Industrial Process Heat Systems with and without storage, his focus is on development of solar thermal power plant with storage working for 24 h/d suitable for Indian conditions. He is also associated with Centre for Technology Alternatives for Rural Areas (CTARA), IIT Bombay and is working on rural energy and other technologies. He is presently focusing on problem assessment and development and dissemination of small and affordable implements for performance improvement for traditional wood fired cook-stoves (Chulha) used in different regions of the country.

Prof S B Kedare does not hold any directorship.

He does not hold any equity shares of ONGC.

Except Prof S B Kedare, none of the Directors, Key Managerial Personnel and their relatives is interested or concerned in the resolution.

The Board of Directors considers that in view of the background and experience of Prof S B Kedare, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval.

Item No.8

APPOINTMENT OF SHRI K M PADMANABHAN

Shri K M Padmanabhan was appointed as an Additional Director (part-time non-official Director) under Section 161 of the Companies Act, 2013, effective 20''" November. 2015. Shri K M Padmanabhan shall hold office up to the 23rd Annual General meeting and shall be eligible for appointment to the office of Director thereon. The Company has received a notice from a member proposing his candidature for the office of Director along with requisite fees. Shri K M Padmanabhan, if appointed, will not be liable to retire by rotation under Sections 152 of the Companies Act, 2013.

Born on 04.04.1957. Shri Padmanabhan. is a Chartered Accountant in practice for more than 27 years and is the Senior Partner of Sinivas & Padmanabhan. Chartered Accountants, Chennai.

As a practicing Chartered Accountant, he has created Internal Control Systems, processes and procedure besides rendering business consultancy for a very big South based educational institution spread into engineering, medical and also into hospitals.

He is a regular Visiting Faculty in the area of Finance and Accounting at Indian Institute of Management (Indore), Indian Institute of Management (Raipur), Institute for Financial Management and Research (IFMR), RBI Staff Training College, Tamilnadu Judicial Academy, The Institute of Chartered Accountants of India (ICAI).

He has been trained in Case Method Teaching at Harvard Business School. Boston, USA and at Harvard Business School Center. Shanghai, China. He is the founder member of Prerana Helpline Foundation (NGO) that caters for the need of visually challenged people. He was able to eliminate wastes and non- value added expenditure through Business Process Reengineering and Kaizen cost Reduction Methods for various business units in the SME sector in the last 10 years of business consulting. He had trained thousands of non-finance executives in Finance, costing, and kaizen cost Reduction with strategic orientation,

He is also a Managing committee member of Madras Management Association one of most acclaimed management associations in India and served as subcommittee member of Economic affairs and taxation committee of Cll-Southern region.

Shri K M Padmanabhan holds directorship in Rashtriya Ispat Nigam Ltd. & Prerana Educational Media Pvt. Ltd.

He does not hold any equity shares of ONGC.

Except Shri K M Padmanabhan, none of the Directors. Key Managerial Personnel and their relatives is interested or concerned in the resolution.

The Board of Directors considers that in view of the background and experience of Shri K M Padmanabhan, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval. ltemNo.9

APPOINTMENT OF SHRI A P SAWHNEY

Shri A P Sawhney, was appointed as an Additional Director (Govt. Director) on the Board of ONGC effective January. 2016. In terms of Section 161 of the Companies Act. 2013. he holds office up to the 23'' Annual General meeting of the Company. The Company has received a notice in writing from a member pursuant to the provisions of Section 160 of the Companies Act, 2013, signifying intention to propose Shri A P Sawhney, as candidate for the of fice of Director. Shri A P Sawhney, if appointed, will be liable to retire by rotation under Sections 152 of the Companies Act, 2013 and in terms of provisions under the Articles of Association of the Company.

Born on 04.02.1962, Shri Sawhney an IAS Officer of Andhra Pradesh cadre (1984 batch) is a Mechanical Engineer. Shri Sawhney has handled various assignments in the State of Andhra Pradesh, covering land administration, law and order and quasi-judicial functions, rural development, health

& family welfare, communication & information technology, e-governance and elections etc.

He played a lead role in the Total Literacy Campaign taken up in Nizamabad district in the early nineties. He has also catalyzed the establishment of the International Institute of Information Technology in Hyderabad and its emergence as one of the premier institutions in computer science education and research in the country. He has spent more than ten years in assignments relating to information technology and e-governance and has led the formulation of innovative policies and implementation of several major e-governance, communications and broadband projects. He has also worked as the Principal Secretary to Chief Minister of AP after the reorganization of the State of Andhra Pradesh.

He has also held important positions in the Govt, of India as Joint Secretary Training in the Department of Personnel and Training and as the President and CEO of the National e-Governance Division, which assists the Ministry of Electronics and Information Technology in the implementation of the National e-Governance Plan. Since March 2015, he is working as Additional Secretary in the Ministry of Petroleum and Natural Gas.

Shri A P Sawhney holds directorship in Indian Oil Corporation Ltd. & Indian Strategic Petroleum Reserves Ltd. He is a member of Nomination and Remuneration Committee of Indian Oil Corporation Ltd.

He does not hold any equity shares of ONGC.

Except Shri A P Sawhney, none of the Directors, Key Managerial Personnel and their relatives is interested or concerned in the resolution.

The Board of Directors considers that in view of the background and experience of Shri A P Sawhney, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval.

Item No.10

APPOINTMENT OF SHRI AMAR NATH

Shri Amar Nath was appointed as an Additional Director (Govt. Director) on the Board of ONGC effective 28th June. 2016. In terms of Section 161 of the Companies Act, 2013, he holds office up to the 23rd Annual General meeting of the Company. The Company has received a notice in writing from a member pursuant to the provisions of Section 160 of the Companies Act, 2013, signifying intention to propose Shri Amar Nath as candidate for the office of Director. Shri Amar Nath, if appointed, will be liable to retire by rotation under Sections 152 of the Companies Act, 2013 and in terms of provisions under the Articles of Association of the Company.

Shri Amar Nath. Joint Secretary (Exploration) Ministry of Petroleum & Natural Gas is the Govt, nominee Director on the Board of your Company. Born on 30.03.1966, Shri Amar Nath an IAS Officer (1994 AGMUT Cadre) is a Bachelor of Science (Mechanical Engineering) from National Institute of Technology, Kurukshetra, Kurukshetra University and MA (International Development Policy) from Duke University. USA. Shri Amar Nath was Secretary to the Department of Health, Government of National Capital Territory of Delhi prior to the present assignment. He has held the positions of

Administrator of Union Territory of Lakshadweep, Chief Executive Officer of Delhi Urban Shelter Improvement Board, and Chief Executive Officer of Chandigarh Housing Board in Chandigarh.

He has extensive experience of working in various Departments of Government at senior management positions such as Finance, Economic Planning, Tourism and Industrial Development in the states of Arunachal Pradesh. Pondicherry, Chandigarh and Delhi. Before joining IAS in 1994 he worked with State Bank of India and Steel Authority of India.

Shri Amar Nath does not hold any directorship. He also does not hold any equity shares of ONGC.

Except Shri Amar Nath, none of the Directors, Key Managerial Personnel and their relatives is interested or concerned in the resolution.

The Board of Directors considers that in view of the background and experience of Shri Amar Nath, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval.

Item No.11

RATIFICATION OF REMUNERATION OF COST AUDITORS FOR THE FINANCIAL YEAR 2016-17

The Board of Directors of the Company on the recommendations of the Audit S Ethics Committee have approved appointment of the following Cost Auditors of ONGC for the year 2016-17 at a remuneration of Rs, 3.25.Lakh (Rupees Three Lakh twenty five thousand only) per Cost Auditor plus applicable service tax and out-of-pocket expense, as per entitlement:

1. M/s Rao Murthy & Associates, Bangalore

2. M/s R.Nanabhoy& Co., Mumbai

3. M/s RJGoel& Co., Delhi

4. M/sShome& Banerjee, Kolkata

5. M/s Rohit& Associates, Mumbai

6. M/s Dhananjay V. Joshi & Associates, Pune

None of the Directors, Key Managerial Personnel and their relatives is interested or concerned in the resolution.

The Board of Directors recommends the resolution for your approval.

The instructions for e-voting are as under:

a) Details of the process and manner of e-voting along with the User ID and Password are being sent to the members along with the notice:

By email to those members whose email ID is registered with the Company / Depository Participants.

By post to those members whose email ID is not registered with the Company / Depository Participant.

b) The instructions and other information relating to e-voting are as under:

i. Launch internet browser by typing the URL: https://evoting.nsdl.com.

ii. Enter the login credentials (i.e. User ID and Password mentioned in the notice). However, if you are already registered with NSDL for e-voting, you can use your existing User ID and password for logging in.

iii. After entering these details appropriately, Click on "LOGIN".

iv. You will now reach password change Menu wherein you are required to mandatorily change your password. The new password shall comprise of minimum 8 characters with at least one upper case (A-Z), one lower case (a-z), one numeric value (0-9) and a special character (@,#,$, etc.). The system will prompt you to change your password and update your contact details like mobile number, email ID, etc. on first login. You may also enter a secret question and answer of your choice to retrieve your password in case you forget it. It is strongly recommended that you do not share your password with any other person and that you take utmost care to keep your password confidential.

v. You need to login again with the new password.

vi. On successful login, the system will prompt you to select the "EVENT" i.e. Oil and Natural Gas Corporation Limited.

vii. On the voting page, enter the number of shares (which represents the number of votes as on the Cut Off date) under “FOR / AGAINST / ABSTAIN" or alternatively, you may partially enter any number of votes in "FOR” and partially in AGAINST" such that the total number of votes cast “FOR / AGAINST’ taken together should not exceed your total shareholding as on cutoff date. In case you do not wish to cast your vote you may choose the option "ABSTAIN" and the shares held will not be counted under either head.

viii. Voting has to be done for each item of the Notice separately. In case you do not cast your vote on any specific item it will be treated as abstained.

ix. Members holding multiple demat accounts / folios shall choose the voting process separately for each demat account / folio.

x. You may then cast your vote by selecting an appropriate option and click on ‘''Submit".

xi. A confirmation box will be displayed. Click “OK" to confirm else “CANCEL’ to modify. Once you confirm, you will not be allowed to modify your vote. During the voting period, members can login any number of times till they have voted on the Resolution(s).

xii. Corporate / Institutional members are required to send scanned certified true copy (PDF Format) of the Board Resolution/Authority Letter, etc. together with attested specimen signature(s) of the duly authorized representative(s), to the Scrutinizer at email ID: [email protected] with a copy marked to [email protected].

Relevant Information for e-voting:

The e-voting period commences on 05.09.2016 (9.00 a.m. 1ST) and ends on 07.09.2016 (5.00 p.m. 1ST). During this period. Members of the Company, holding shares either in physical form or in dematerialized form, as on 01.09.2016, may cast their vote electronically. The e-voting module shall be disabled by M/s Alankit (RTA) for voting thereafter. Once the vote on a resolution is cast by the Member, he shall not be allowed to change it subsequently.

The voting rights of Members shall be in proportion to their shares of the paid up equity share capital of the Company as on 01.09.2016.

- Any person who acquires shares of the Company and becomes a shareholder of the company after dispatch of the Notice of AGM and holds shares as on the cut-off date i.e 01.09.2016 may obtain the login ID and password by sending a request at [email protected]. If you are already registered with NSDL for e-voting then you can use your existing user ID and password.

A Member may participate in the AGM even after exercising his right to vote through remote e-voting but shall not be allowed to vote again at the AGM.

The facility for voting through ballot paper, will also be made available at the AGM and the members attending the AGM who have not cast their vote by remote e-voting shall be able to exercise their right at the AGM through ballot papers.

- Shri P P Agarwal of M/s P P Agarwal & Co., Practicing Company Secretary (Membership No. FCS 4955). has been appointed as the Scrutinizer to scrutinize the voting and remote e-voting process in a fair and transparent manner.

The Scrutinizer shall immediately after the conclusion of voting at the AGM count the votes cast at the AGM and thereafter, unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the employment of the Company. The Scrutinizer shall submit a consolidated Scrutinizer Report of the Total votes cast in favor of or against, if any. not later than 48 (Forty eight) hours from the conclusion of the AGM to the Chairman of the Company. The Chairman or any other person authorized by the Chairman shall declare the result of the voting forthwith.

- The results declared along with the Scrutinizer’s Report shall be placed on the Company’s website www.ongcindia.com and on the website of Alankit i.e www.alankit.com immediately after the result is declared by the Chairman or any other person authorized by the Chairman and the same shall be communicated to the BSE Limited and National Stock Exchange of India Limited, where the shares of the Company are listed.

By Order of the Board of Directors

(V N Murthy)

Regd. Office: Company Secretary

Jeevan Bharati Building Tower II,

124 Indira Chowk,

New Delhi -110 001

3''“ August, 2016

---

Mar 31, 2015

Dear Members,

It gives me great pleasure to present, on behalf of the Board of Directors of your Company, the 22nd Annual Report on the business and operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its Audited Statements of Accounts for the year ended March 31, 2015, together with the Auditors' Report and Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.

Your Company along with its group companies has registered yet another year of sustained performance. Exploration and production of crude oil and gas, our core business, set various milestones during the year. Besides that performance in the areas where ONGC has engaged substantially also witnessed success with positive contributions.

ONGC has steadfastly focussed on organic growth through its exploratory endeavours and build a healthy reserve profile for the future. During FY'15, the Company registered Reserve Replacement Ratio (RRR) of 1.38 (with 2P reserves) with 22 oil and gas discoveries in various basins of

the country. This has been possible because of extensive exploration in known basins as well as frontier plays. Domestic crude oil and natural gas production of ONGC along with its share in the domestic joint ventures (PSC-JVs) during FY'15 has been 49.46 million metric tonnes of oil and oil equivalent gas (MMtoe) which is about 2.7% lower than FY'14 production (50.84 MMtoe). On standalone basis crude oil production from ONGC operated fields has been 22.26 million metric tonnes (MMT) against production of 22.25 MMT during FY'14. This goes to the credit of your Company that production decline could be arrested due to prudent reservoir management practices adopted in the matured fields and bringing new fields on stream.

Major Highlights: FY'2014-15

Salient highlights with respect to performance of your Company during FY'2014-15 are as below:

* 22 oil & gas discoveries in domestic acreages with accretion of 61.05 MMToe of 2P reserves.

* RRR (2P) for FY'2014-15 was 1.38; in excess of One consecutively for 9 years.

* Despite natural decline in matured fields, crude oil production from domestic fields maintained at 25.94 MMT Major upside in production was registered from the Western offshore fields with incremental oil gain of 4.3%.

* New and marginal fields contributed about 12.3% of crude oil (2.74 MMT out of 22.26 MMT from domestic operated fields) and 15.2% of natural gas production (3.35 BCM out of 22.02 BCM from domestic operated fields). 34.5% of crude oil production was contributed by the IOR/EOR and redevelopment schemes.

* The gross revenue from operations during FY'2014-15 has been Rs. 830,935 million; 1.3% lower than FY'14.

* Rs. 362,996 million contribution towards sharing the under- recoveries of OMCs during FY'2014-15 impacting ONGC's Profit Before Tax (PBT) by Rs. 309,596 million and Profit After Tax (PAT) by Rs. 204,370 million. Despite this Net Profit has been Rs. 177,330 million; 19.7% lower than the profit during previous year FY'2013-14.

* Hon'ble Prime Minister Mr. Narendra Modi dedicated the 2nd unit of OTPC Power Plant at Palatana, Tripura, to the Nation on December 1,2014. The 726.6 MW gas-based power plant of ONGC Tripura Power Company is the biggest project in North East part of India in terms of investment in E&P, gas and power transmission. It is also credited as the largest Clean Development Mechanism (CDM) projects of the world.

* Your Company decided to invest Rs. 249,000 million in five major projects in estern Offshore for sustaining crude oil and gas production.

* HRD process platform of ONGC was installed successfully on January 15, 2015 using the state-of-the- art Float-Over technology. This is the first such endeavour in the history of ONGC, where installation of an add-on platform with the existing operational platform has been completed successfully.

* The operationalization of FPSO at Cluster-7 project on February 26, 2015 resulted in doubling the crude oil production from around 7,500 barrels per day (bpd) to around 15,000 bpd.

* ONGC Videsh Ltd. (100% subsidiary of your Company) registered 8.87 Mmtoe of O OEG production during FY'2014-15 against 8.36 Mmtoe during FY'2013-14. Production upside primarily came from BC-10 field in Brazil, blocks in Myanmar and the Sakhalin project in Russia.

* Despite higher production, ONGC Videsh's Revenue during FY'2014-15 has been down by 14% due to lower oil prices globally. PAT has been down by 57% due to lower oil prices, exchange losses, higher financing cost and higher depletion charges.

* During the year ONGC Videsh made a maiden venture in New Zealand with exploratory acreages.

Discoveries

Offshore: 10; Onshore: 12

New Prospects: 10; New Pool: 12

NELP Blocks: 7; Nomination blocks: 15

* MRPL commissioned all the units under Phase-III refinery expansion project during the year and registered the highest-ever thru-put of 14.65 MMT

* Turnover of MRPL for the year was down by 17% due to lower products' prices and it registered a net loss of Rs. 11,700 million against Net profit of Rs. 6,010 million in FY'2013-14 due to exchange and inventory losses.

Besides excellence in core operational activities your Company positioned itself as a valuable corporate citizen through its mapped defined actions towards inclusive growth of the Society/Community and green initiatives as per the commitment and our performance was globally recognized. ONGC was ranked at 183rd position among 2000 top global companies in Forbes Global 2000 list published in May'2015. In the global oil and gas operation industry, ONGC has moved up three places to occupy the 18th position. ONGC has been ranked as the Top energy company in India, in the coveted Platt's Top 250 Global Energy Company Rankings 2014. ONGC improved upon its global ranking by a notch to be positioned 21st among the global energy majors. ONGC has also maintained its position as the 3rd largest Exploration and Production (E&P) company in the world. In the latest Newsweek Green Rankings, the world's most recognized assessment of corporate environmental performance, ONGC has made a quantum leap to be ranked 217 globally (it was positioned 386th in 2012 Green rankings). The company now stands third amongst only seven Indian companies named in the prestigious list.

Performance 2014-15 Exploration

During the year 2014-15, ONGC has made 22 Oil and gas discoveries in domestic acreages (operated by ONGC). Out of 22, 10 discoveries are in Offshore and 12 in Onshore; 10 discoveries were made in the new prospects whereas 12 were new pool discoveries. 7 discoveries were made in NELP blocks and 15 in nomination blocks.

Two discoveries (Rudrasagar-184 & Gandhar-699) during 2014-15 in nomination blocks have already been put on production and efforts are on for bringing the other discoveries on production as early as possible. 7 discoveries in NELP blocks (5 Onland, 2 Offshore) are governed by the PSC guidelines and appraisal/ development activities will be taken up keeping in view the timelines of the respective blocks. In addition to these discoveries, exploratory wells conclusively tested and proved to be hydrocarbon bearing will help in field growth of existing fields. Details of the discoveries are as under:

Sr. Well No. Basin/ Type of Sub-basin Hydro-carbon

1 Tukbai-3A (TK-3A) AAFB-Cachar Gas

2 Rupal-2* Oil

3 Vadatal-10 (VDAH)* Cambay Oil

4 Vadatal-11* Oil

5 Thirunagari / Thirunagari-1* Cauvery(On) Gas

6 South Pasarlapudi-1 KG(On) Oil & Gas

7 YS-9-1 (Shift) KG(S) Gas

8 GD-11 / GD-11-1 KG(DW) Gas

9 GKS092NAA-1* Kutch Gas

10 GKS091NDA-1* Offshore Gas

11 C-1-7 Mumbai Oil & Gas

12 C-1-8 Offshore Oil & Gas

13 Rudrasagar / Rudrasagar-184 Oil

14 Khoraghat-35 A&AA (Assam) Gas & Cond.

15 Khoraghat-37 Gas

16 Gandhar-699 Cambay Oil

17 Madanam / Madanam-6* Cauvery Onshore Oil & Gas

18 Damoh / Damoh-4 Vindhyan Gas

19 GS-29-10 (AJ) KG (SW) Oil & Gas

20 G-1-NE-1 KG (S) Oil & Gas

21 G-1-NE-2 KG (S) Gas & Cond.

22 WO-5 / WO-5-11 Mumbai Offshore Oil & Gas

Sr. Well No. Type of discovery

1 Tukbai-3A (TK-3A) New Prospect

2 Rupal-2* New Prospect

3 Vadatal-10 (VDAH)* New Prospect

4 Vadatal-11* New Prospect

5 Thirunagari / Thirunagari-1* New Prospect

6 South Pasarlapudi-1 New Prospect

7 YS-9-1 (Shift) New Prospect

8 GD-11 / GD-11-1 New Prospect

9 GKS092NAA-1* New Prospect

10 GKS091NDA-1* New Prospect

11 C-1-7 New Pool

12 C-1-8 New Pool

13 Rudrasagar / Rudrasagar-184 New Pool

14 Khoraghat-35 New Pool

15 Khoraghat-37 New Pool

16 Gandhar-699 New Pool

17 Madanam / Madanam-6* New Pool

18 Damoh / Damoh-4 New Pool

19 GS-29-10 (AJ) New Pool

20 G-1-NE-1 New Pool

21 G-1-NE-2 New Pool

22 WO-5 / WO-5-11 New Pool

* In NELP blocks

Details of the discoveries in NELP blocks (since inception till 01.04.2015)

Out of the 114 NELP blocks awarded to/ acquired by ONGC as operator, currently ONGC is operating in 49 blocks, balance 65 blocks have been relinquished. Exploration/ appraisal programme is underway in all the active blocks. A total of 47 discoveries as on date (16 in deep-water, 13 in shallow water and 18 in onland) have been made by ONGC in 22 of these NELP blocks (6 deep-water, 6 shallow water & 10 onland). Commencement of production from these discoveries is governed by stipulations laid down in the respective PSCs and is to be taken up after successful completion of appraisal programme followed by submission of DOC and approval of Field Development Plan. ONGC has put three NELP Blocks on Commercial Production:

a. NELP Block CB-ONN-2004/1 (Karannagar)

Onshore NELP Block CB-ONN-2004/1 (Karannagar) located in Ahmedabad was put on commercial production on 24.03.2015 within 24 hours of getting the Mining Lease. This NELP block was awarded to consortium of ONGC and GSPC in VI round of NELP bidding in 2007. ONGC is the operator of block with 60% participatory interest.

b. NELP block CB-ONN-2004/2 (Vadatal)

Vadatal-1 in the NELP block CB-ONN-2004/2 (Vadatal) was put on production on March 26, 2015. The NELP block CB-ONN-2004/2 was awarded to a consortium of ONGC and GSPC in VI round of NELP bidding in 2007. ONGC is the operator of the block (PI: 55%) with partner GSPC (PI: 45 %.).

c. NELP block CB-ONN-2002/1 (West Patan)

West Patan #3 well in the NELP block CB-ONN-2002/1 (West Patan) was put on commercial production on 31.03.15 on the same day of getting the Mining Lease from the Govt. of Gujarat. The block CB-ONN-2002/1, covering 135 sq. km and falls in the northern part of the Cambay Basin and is located west of Patan town in North Gujarat.

Reserve accretion & Reserve Replacement Ratio (RRR)

Continuing exploration in challenging and frontier areas, your company has accreted 215.65 million metric tonnes of oil equivalent (MMtoe) of In-place volume of hydrocarbon in the domestic basins (operated by ONGC). As on 01.04.2015, in-place hydrocarbon volume of ONGC as a group stands at 9,283.84 MMtoe; up 4.2% from FY'2013-14 figure of 8,912.81 MMtoe. The ultimate reserves (3P) accretion in domestic area (ONGC operated) during FY'2014-15 has been 70.98 MMtoe and 2P reserve accretion has been 61.06 MMtoe. Total reserve accretion during 2014-15 in domestic basins including ONGC's share in PSC JVs stands at 60.03 MMtoe. Voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69) have been made by your Company.

The following table gives the details of reserve accretion (2P) for the last 5 years in domestic basins as well as from the overseas assets:

Ultimate Reserve (2P) accretion O OEG (in MMToe)

Year Domestic ONGC's share in Total Assets Domestic JVs Domestic Reserve (1) (2) (3) = (1) (2)

2010- 11 63.09 0.29 63.38

2011- 12 58.67 1.43 60.1

2012- 13 67.59 4.23 71.82

2013- 14 56.26 4.29 60.55

2014- 15 61.06 -1.03 60.03

Ultimate Reserve (2P) accretion O OEG (in MMToe)

Year ONGC VIDESH's Total Share in Foreign Asset (5)=(3) (4) (4)

2010- 11 54.2 117.58

2011- 12 -0.06 60.04

2012- 13 10.09 81.91

2013- 14 213.24 273.79

2014- 15 20.03 80.06

Note: Reserve accretion reported in terms of 2P reserves

Statement of Reserve Recognition Accounting (RRA)

Reserve Recognition Accounting is a voluntary disclosure towards recognizing income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization engaged in exploration and production of hydrocarbons with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee of the Company.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information:

a) Proved Oil and Gas reserve quantities

b) Capitalized costs relating to Oil and Gas producing activities

c) Cost incurred for property acquisition, exploration and development activities

d) Results of operations for Oil and Gas producing activities

e) A standardized measure of discounted future net cash flows relating to proved Oil and Gas reserve quantities

Your Company has disclosed information in respect of (a) to (d) above in the Annual Financial Statements.

Your Company has also made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserve at Annexure-A' to this report as statement of Reserve Recognition Accounting (RRA).

Oil & Gas production

During FY '15, your Company retained its position as the largest producer of oil and gas in the country and contributed 69 per cent of oil and 70 per cent of natural gas production of the country from its domestic operations. On standalone basis, in FY'15 ONGC's domestic crude oil production registered 22.26 MMt against 22.25 MMt in FY'14, reversing the production decline in domestic fields. The major contribution came from Western Offshore, which produced 4.3 per cent more than the production during last year. Details of crude oil and natural gas production from domestic basins along with that of Value Added Products (VAP) are as below:

Unit Production Qty ales Qty

FY'15 FY'14 FY'15 FY'14

Direct

Crude Oil (MMT) 25.94 25.99 24.11 23.61

Natural Gas (BCM) 23.52 24.85 17.98 19.63

Ethane/Propane 000 MT 339 430 337 428

LPG 000 MT 1,095 1,067 1,090 1,073

Naphtha 000 MT 1,155 1,358 1,124 1,379

SKO 000 MT 72 84 74 85

Others

Sub Total

Trading

Motor Spirit 000 KL 0.53 0.54

HSD 000 KL 0.39 0.05

Sub Total

Total

Value (Rs. in million)

FY15 FY'14

Direct

Crude Oil 536,638 25,734

Natural Gas 187,381 83,291

Ethane/Propane 10,064 14,837

LPG 34,380 30,145

Naphtha 50,835 75,743

SKO 2,771 2,779

Others 1,359 2,124

Sub Total 823,428 34,653

Trading

Motor Spirit 38 41

HSD 22 3

Sub Total 60 44

Total 823,488 834,697

Oil & Gas production of ONGC Group, including PSC-JVs and from overseas Assets for FY'15 has been 58.33 MMtoe (against 59.21 MMtoe during FY'14).

Out of the total production of 31.47 MMT of crude oil, 70.8 per cent production came from ONGC operated domestic fields, 17.5 per cent from the overseas assets and balance 11.7 per cent from domestic joint ventures. As far as natural gas production is concerned, majority of production (82 per cent) came from ONGC operated domestic fields, 12.4 per cent from overseas assets and 5.6 per cent from domestic joint ventures.

Production from overseas assets

ONGC Videsh, has thirteen (13) producing assets in ten countries - Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2), Syria (1), Vietnam (1), Mayanmar (2), Russia (2) and Azerbaijan (1).

Total production from these overseas assets during FY'15 has been 8.87 MMtoe of O OEG (Crude oil: 5.53 MMT & Gas: 3.34 BCM).

Ajerbaijan has contributed 12% as compared to around 0.1% last year. Resumption of operations in South Sudan & Sudan has also contributed to this year's increased volume contributing 13.2% this year as compared to 8.2% last year. Russia & Vietnam continued to be the biggest contributor to overseas production volume with 29.4% and 23% respectively.

Unconventional sources of energy

ONGC plans to continue its endeavor for exploration and development of Unconventional & other resources like Shale Gas, CBM, etc. ONGC has prioritized suitable actions for exploration and exploitation of Non-Conventional and Alternate Sources of energy which has the potential to change the energy business landscape in the country as it is happening in the other parts of the world. The initiatives by ONGC in these areas are summarized below;

a. Shale Gas

ONGC has the distinction of establishing the first flow of shale gas in the country on 25th January, 2011 from RNSG#1 well (R&D Pilot Project, Durgapur).

ONGC has chalked out plan of drilling of pilot shale gas and oil wells in most of the identified blocks in Cambay,Krishna-Godavari,Cauvery and Assam &Assam-Arakan Basins. During October, 2013 Government of India brought out shale gas policy which allows National Oil Companies viz. ONGC and OIL to initiate shale gas and oil assessment activities in their allocated nomination blocks in phased manner. As per the new Policy, 50 nomination PML blocks have been identified in four Basins - 28 PMLs in Cambay, 3 PMLs in A&AA, 10 PMLs in Krishna-Godavari and 9 PMLs in Cauvery basins for Shale Gas assessment within three year period of Phase-I. A total of 57 pilot/assessment wells are to be drilled by April, 2017

During 2014-15, ONGC has drilled five exploratory wells for shale gas exploration (4 dual and 1 exclusive) in Cambay, Cauvery, Krishna-Godavari and Assam- Arakan Basins and samples have been collected for assessment of Shale Gas potential. Most of the studies in wells drilled last year have been completed and the integration/ assessment exercise is in progress. Based on the review of data collected in wells JMSGA and GNSGA, prospective intervals have been identified in Cambay Shale which are planned to be hydro- fractured shortly. Presently, 2 Shale gas wells (GNSGB & GNSGC, Cambay Basin) and 1conventional well with dual objective (WPGAA,KG Basin) are under drilling.

b. Coal Bed Methane (CBM)

Of the total thirty-three CBM Blocks awarded by GOI to various operators through four rounds of bidding and nomination, ONGC was awarded nine CBM blocks. Due to poor CBM potential, concluded on the basis of the data generated in the exploratory activities, five Blocks viz. Satpura (Madhya Pradesh), Wardha (Maharashtra), Barmer-Sanchor (Rajasthan), North Karanpura (West) and South Karanpura (Jharkhand) have been relinquished.

Currently, ONGC is operating four CBM Blocks i.e., Jharia, Bokaro, North Karanpura (Jharkhand) and Raniganj (West Bengal),FDP of which has been approved. Nearly 400 wells and 2000 hydro-fracturing jobs have to be carried out in the coming 4-5 years as per timelines of the CBM Contract. In view of the mammoth and time bound task, ONGC is in the process of farming out its participative interest (PI) to experienced CBM players through formation of JV. Farm out Agreement (FoA) for North Karanpura Block has been signed on October 7, 2014 with M/s Prabha Energy Pvt. Ltd (PEPL) with assignment of 25% PI from ONGC's share. Documents have been submitted to DGH for Government's approval of PI assignment. Joint Venture for farming out in Bokaro Block is being negotiated. Further, offers for formation of Joint Venture for Jharia and Raniganj blocks are being invited.

Sale of incidentally CBM gas from existing wells at Parbatpur of Jharia block is continuing and as on April 1, 2015 cumulative gas supply has been 13,875,102 SCM.

c. Underground Coal Gasification (UCG)

ONGC with GIPCL selected Vastan Mine block site in Gujarat as an R&D project to establish UCG technology. All the ground work and inputs for construction and implementation of UCG Pilot Project at Vastan, has been completed and further development is awaiting award of Mining Lease by Ministry of Coal (MoC), GoI.

Further, a number of sites have been jointly identified by ONGC & Neyveli Lignite Corporation Limited (NLC) for studying their suitability to UCG. These are Tadkeshwar in Gujarat and Hodu-Sindhari & East Kurla in Rajasthan. One more site was jointly identified by ONGC & GMDC viz. Surkha in Bhavnagar district, Gujarat. The data of all the fields have already been analyzed for evaluating the suitability of these sites for UCG. All the sites have been found suitable for UCG exploration.

Oil & Gas Projects

In recent years your Company took up 15 projects for development of 39 new/marginal oil and gas fields with an investment of Rs. 386,024 million. Out of these 15 projects, 11 projects have already been completed. Production from development of G-1 & GS-15 fields has already commenced. Rest three projects, Development of WO-16 Cluster, C-26 Cluster and B-127 Cluster, are under implementation and are expected to be completed in FY'17. Further, Improved Oil Recovery (IOR), Enhanced Oil Recovery (EOR) and redevelopment projects were also taken up by your Company for prudent reservoir management and arresting decline from matured fields. 21 of 26 such projects have so far been completed. Two projects i.e., "Heera & South Heera Redevelopment Project" and "Development of Western Periphery of Mumbai High South" project is likely to be completed by Mid FY'16 and the remaining three projects i.e., "Redevelopment of Mumbai High North Phase-III", "Redevelopment of Mumbai High South Phase-III" and "Additional development of Vasai East" will be completed by the year 2017-18.

Details about the projects completed during the year 2014-15, new projects taken up are given as below:

Oil and Gas projects completed during FY'2014-15

The following eight major field development and other projects were completed during the year 2014-15:

Sl. Name of Projects Completion/ Total No Commencement Investment of production Rs. million

1 Development of SB-14 April, 2014 4,104

2 MHN Redevelopment Phase-II June, 2014 71,334

3 MHS Redevelopment Phase-II June, 2014 88,134

4 Development of B-46 June, 2014 14,570 Cluster Fields

5 Fire Water Network at Uran July, 2014 1,717

6 Development of C July, 2014 36,904 Series fields (C-24 Cluster)

7 Development of B-22 July, 2014 29,208 Cluster fields

8 Additional Development July, 2014 23,316 of NBP (D-1) field

Sl. Name of Projects No Envisaged oil & gas gain

1 Development of SB-14 0.197 MMm3 of condensate & 1.641 BCM of gas in its project life of 12 years

2 MHN Redevelopment Phase-II 17.354 MMT of oil and 2.987 of gas BCM respectively by 2029-30

3 MHS Redevelopment Phase-II 18.31 MMT of oil and 2.70 BCM of gas by 2029-2030

4 Development of B-46 5.273 BCM of gas & 1.68 MMm3 of Cluster Fields condensate in its project life of 12 years

5 Fire Water Network at Uran For safe operations

6 Development of C 10.771 BCM of gas and 2.166 MMT Series fields (C-24 Cluster) of condensate by 2024-25

7 Development of B-22 2.46 MMT of oil, 1.13 MMT of Cluster fields condensate and 6.56 BCM of gas by 2019-2020

8 Additional Development 8.296 MMT of oil by 2024-25 of NBP (D-1) field

Projects brought to production in FY'2014-15

Production commenced from following six projects during the year

Sl. Fields Project Date of No Commencement of production

1. SB-14 Development of 7th April, 2014 SB-14 field

2. BHE Development of BHE & 4th April, 2014 BH-35 fields

3. WO-24 Development of 10th June, 2014 Cluster-7 fields

4. B-193 Development of B -193 26th May, 2015 Cluster fields

5. B-178 Development of B -193 25th May, 2015 Cluster fields

6. B-179 Development of B -193 24th May, 2015 Cluster fields

Sl. Name of Projects Approved Cost Incremental Oil No (Rs. million) & Gas gain

1 MHN Redevelopment 58,133 6.997 MMT of Oil Phase-III and 5.253 BCM of gas by the year 2029-30

2 MHS Redevelopment 60,688 7.547 MMT of oil Phase-III and 3.864 BCM of gas by the year 2029-30

3 Additional Development 24,768 1.827 MMT of Oil of Vasai and 1.971 BCM of gas by the year 2029-30

4 Integrated Development 60,861 5.01 MMm3 of of Daman condensate and 27.67 BCM of gas by the year 2024-25

5 Enhanced Recovery from 46,199 19.36 BCM of gas Bassein field through 1.97 Mm3 of Integrated Development condensational, of Mukta, Bassein & Panna 0.183 mmt of oil till 2027-28

6 Pipeline replacement 28,999 Project-IV

Total 279,648

1. Financial Results

Despite volatile markets and sharing under-recoveries of Rs. 362,996 million during the year 2014-15, your Company has earned a Profit After Tax (PAT) of Rs.177,330 million, down 19.74% over FY 2013-14 (Rs. 220,948 million). During 2014-15, your Company registered Gross revenue of Rs. 830,935 million, down 1.32 % over 2013-14 (Rs. 842,028 million).

Highlights

* Gross Revenue : Rs. 830,935 million

* Profit After Tax : Rs. 177,330 million

* Contribution to Exchequer : Rs. 421,074 million

* Return on Capital Employed : 33.2 %

* Debt-Equity Ratio : 0.0096 :1

* Earnings Per Share (Rs.) : 20.73

* Book Value Per Share (Rs.) : 168

Particulars 2014-15 2013-14

Revenue from operations 830,935 842,028

Other Income 53,666 67,132

Total Revenues 884,601 909,160

Profit Before Interest, Depreciation & Tax (PBIDT) 380,163 433,582

Profit Before Tax (PBT) 265,552 324,319

Profit After Tax (PAT) 177,330 220,948

APPROPRIATION

Interim Dividend 77,000 79,138

Proposed Final Dividend 4,278 2,139

Tax on Dividend 16,256 13,807

Transfer to General Reserve 79,796 125,864

TOTAL 177,330 220,948

The decrease in Profit during FY 14 -15 as compared to FY 13-14 is mainly due to higher exploratory wells written off and reduction in quantity sold as well as lower price realization of value added products.

Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014, a separate statement containing the salient features of the financial statement of its subsidiaries, associate company and joint venture in Form AOC-1 forms part of the Financial Statements.

2. Dividend

Your Company paid interim dividend of Rs. 9.00 per share (180 per cent) in two phases('5.00 and Rs. 4.00). The Board of Directors has recommended a final dividend of Rs. 0.50 per share(10 per cent) making the aggregate dividend at Rs. 9.50 per share (190 per cent) for FY 14-15 i.e. same as compared to dividend for the year 2013-14. The total dividend will be Rs. 81,278 million, besides Rs. 16,256 million as tax on dividend amounting to 55% of PAT

3. Management Discussion and Analysis Report

As per the terms of Clause 49VIIID of the Listing Agreement with the Stock Exchanges, the Management Discussion and Analysis Report (MDAR) has been included and forms part of the Annual Report of the Company.

4. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards and Successful Efforts Method of accounting as per the Revised Guidance Note on Accounting for Oil & Gas Producing Activities issued by The Institute of Chartered Accountants of India (ICAI) effective from 01.04.2013 and provisions of the Companies Act, 2013. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared under the Schedule III format of the Companies Act, 2013.

Loans, Guarantees or Investments

ONGC is engaged in Exploration & Production business which is covered under the exemption provided under Section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investment made or guarantee or security given by the company to subsidiaries and associates is not required to be reported.

Related Party Transaction

Particulars of contracts or arrangements with related parties referred to in Section 188 of the Companies Act, 2013 in the form AOC-2 form part of Board's Report and placed at Annexure-B.

5. Subsidiaries

I ONGC Videsh Limited (ONGC Videsh)

Videsh, the wholly-owned subsidiary of your Company for E&P activities outside India, has participation in 36 projects in 17 countries viz., Azerbaijan, Bangladesh, Brazil, Colombia, Iran, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, New Zealand, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam. Out of 36 projects, 13 are producing, 4 are discovered/ under development, 17 are exploratory and remaining 2 are pipeline projects.

ONGC Videsh is currently producing about 167 thousand barrels of oil and oil equivalent gas per day and has total oil and gas (2P) reserves of about 612 MMtoe as on 31st March 2015. During FY'15, there is an increase in oil and gas production by 6.19% (Oil 0.86% and Gas 16.37%) as compared to previous fiscal year. The incremental production is primarily due to better management of fields and addition in the portfolio.

ONGC Videsh's share in production of oil and oil equivalent gas (O OEG), together with its wholly-owned subsidiaries, ONGC Nile Ganga B.V, ONGC Amazon Alaknanda Limited, Imperial Energy Limited and Carabobo One AB, was 8.874 MMtoe during FY15 as compared to 8.357 MMtoe during FY 14. The oil production increased from 5.486 MMT during FY'14 to 5.533 MMT during FY'15 (0.86% higher) primarily due to increased share of additional 12% PI in Block BC-10, Brazil.

During FY'15, the company has earned profit after tax of Rs. 19,042 million, a decrease of 57% as compared to FY'14. Despite higher production during FY'15, the decrease in profit is mainly due tolower oil prices, higher financing cost including exchange loss, higher depletion charge, and impairment provision in one of the assets.

(A) Significant Acquisitions, Alliances and Operations highlights of ONGC Videshduring FY'15 are as follows:

a) Block PEP 57090, New Zealand: ONGC Videsh was awarded an exploration permit PEP 57090 in the Taranaki offshore basin by Government of New Zealand on 9th December, 2014. ONGC Videsh has now started operations in Pacific Region.

b) During FY'15, ONGC Videsh has signed the following MoUs:

(i) MoU with ROSNEFT was executed on 24th May, 2014 for cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbon production in Russia's offshore Arctic.

(ii) MoU with TPAO (the Turkish Petroleum Company) was executed on 18th June 2014 for working together for E&P activities in Turkey, joint participation in bidding for opportunities including exploration bid rounds in third countries and pursuit of hydrocarbon opportunities related research and development activities.

(iii) MoU with YPF S.A. Argentina was executed on 1st September, 2014 for working to explore possibility of cooperation in the areas of Unconventional and Conventional Hydrocarbon Assets in Argentina, E&P activities in India and in third countries, research & development activities and human resources development.

(iv) Lol with Petro Vietnam was executed on 15th September, 2014, for expansion of exploration activities by ONGC Videsh in Vietnam by considering participation in 2-3 additional blocks subject to technical and commercial viability and requisite approvals.

(v) MoU with Pemex-Exploracion Y Production (PEP) was executed on 25th September, 2014, for cooperation in the hydrocarbon sector in the fields of technology, human resources, research & development.

(vi) MoU with Mubadala Petroleum, UAE was executed on 29th September, 2014, for collaboration in potential upstream oil & gas exploration, development and producing projects and LNG opportunities.

(vii) HoA with PVEP was executed on 28th October, 2014, for mutual cooperation and participation in Blocks 102/10 & 106/10 of PVEP and Block 128 of ONGC Videsh in offshore Vietnam subject to due diligence and negotiations on the terms of participation.

(c) Operations

i. In Sakhalin-1 Project, the topside of "Berkut"-world's biggest offshore platform in Arkutun-Dagi field, was successfully floated over from South Korea to Russia and installed on 20th June, 2014 with production commencing from 5th January, 2015.

ii. Gas Export Pipeline Remediation project in Block BC-10, Brazil was successfully commissioned on 1st November, 2014 leading to gas export about 0.27 MMSCMD.

iii. In A-1/A3 Project, Myanmar, plateau gas production rate of 14.2 MMSCMD was achieved on 2nd December, 2014.

iv. Oil production from Petro Carabobo, Venezuela, crossed 16,000 BOPD on 16th March, 2015 with average oil production of 9,775 BOPD during FY'15 as compared to 3,293 BOPD during FY'14.

v. First crude oil cargo of 1.2 million barrel of Petro Carabobowas lifted by RIL on 25th May, 2014 from Venezuela.

vi. The ongoing geo-political situation in Syria including EU sanctions and the resulting restrictions on contractors continue adversely affecting Syrian operations since December, 2011.

vii. The operations in South Sudan projects are temporarily under shutdown after internal conflicts and adverse security situation in the country since 22nd December, 2013. The operations in South Sudan shall resume once security situation improves.

Direct Subsidiaries of ONGC Videsh

i. ONGC Nile Ganga B.V. (ONGBV)

ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25 per cent Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.705 MMT during 2014-15. ONGBV also holds 25 per cent PI in Greater Pioneer Operating Company (GPOC), South Sudan. Due to adverse geo-political conditions, ONGC Videsh could not produce in GPOC, South Sudan during FY'15.

ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due to force majeure condition in Syria, there was no production in AFPC project during FY'15. ONGBV holds 40 per cent PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil production of about 0.645 MMT during FY' 15. ONGBV holds 27 per cent PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. with its share of oil and gas production of about 0.854 MMtoe during FY' 15. It also holds 25 percent PI in Block BM- SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltd. ONGBV also holds 8.347 per cent PI in South East Asia Gas Pipeline Co. Ltd., (SeAGP) for Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.

ii. ONGC Narmada Limited (ONL)

ONL has been retained for acquisition of future E&P projects in Nigeria.

iii ONGC Amazon Alaknanda Limited (OAAL)

OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY' 15, ONGC Videsh's share of oil production in MECL was about 0.626 MMT

iv. Imperial Energy Limited

Imperial Energy Limited, a wholly-owned subsidiary of ONGC Videsh incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia, Russia. During FY' 15, Imperial Energy's oil and gas production was about 0.289 MMToe.

v. Carabobo One AB

Carabobo One AB, a subsidiary of ONGC Videsh incorporated in Sweden, indirectly holds 11 per cent PI in Carabobo-1 Project, Venezuela. During FY' 15, Carabobo's oil production was about 0.066 MMT

vi. ONGC (BTC) Limited :

ONGC (BTC) Limited holding 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline ("BTC") owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude from the ACG fields from Azerbaijan to the Mediterranean Sea.

vii. Beas Rovuma Energy Mozambique Limited:

Beas Rovuma Energy Mozambique Limited was incorporated in British Vergin Islands (BVI) and holding 6% PI in Rovuma Area 1, Mozambique.

viii. ONGC Videsh Atlantic Inc.:

ONGC Videsh Atlantic Inc. is incorporated in Texas, United States of America, to work in co-ordination with Anadarko (Operator of Rovuma Area 1, Mozambique) and to establish G&G centre etc.

ix. ONGC Videsh Rovuma Limited:

ONGC Videsh Rovuma Limited was incorporated in Mauritius for structuring of 10% PI in ONGC Videsh's Rovuma Area 1, Mozambique.

II Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company continues to hold 71.62 per cent equity stake in MRPL, a Schedule A' Mini Ratna, which is a single location 15 MMTPA Refinery on the West coast.

Performance Highlights FY 2014-15

MRPL achieved the highest-ever thru'put of 14.65 MMT in FY 14-15 against 14.55 MMT in FY 13-14 .

MRPL exported 4.98 MMT of products against 6.72 MMT in the previous year. The exports were low compared to the previous year due to the commissioning of Delayed Coker Unit and increased domestic sale of Kerosene and HSD .

Crude sourcing (Receipts): 14.35 MMT; Iran (34.83 per cent), Saudi Arabia (19.67 per cent), ADNOC (12.12 per cent), Kuwait (15.12 per cent), Basrah Light (0.8 percent) Mumbai High (5.03 per cent), Ravva and KG basin (3.50 per cent) Sonangol (3.81 percent) Spot (5.12 per cent).

Marketing and Retail Operations

MRPL continues to expand its market spread in the direct sales segment of petroleum products in the state of Karnataka and its adjoining states. MRPL has significant market share and direct customer relations for products such as Bitumen, Fuel Oil, Sulphur, Diesel, Petcoke and Mixed Xylene in its refinery zone. The total sales volume of direct marketing products during the FY 2014-15 was 820 TMT with a sales value of Rs. 22,970 million compared to volume of 507 TMT and sales value of Rs. 25,890 million in the previous FY 2013-14.

Phase III - Brownfield expansion Project

All the units of MRPLs Phase III up-gradation and expansion project have been commissioned . The Polypropylene unit was inaugurated by Hon'ble Minister (I/C) P&NG on 05-04-2015.

Acquisition of controlling stake in OMPL

MRPL has increased its stake in OMPL to 51 % by subscribing to the right issue made by OMPL Subsequently OMPL has become subsidiary of MRPL and a Government company under Companies Act, 2013.

6. Annual Report of Subsidiaries and Consolidated Financial Statement

In accordance with Section 134 of the Companies Act, 2013 and the Accounting Standard (As)-21 on "Consolidated Financial Statements" read with AS-23 on "Accounting for Investments in Associates" and AS- 27 on "Financial Reporting of Interests in Joint Ventures", audited Consolidated Financial Statements for the year ended 31st March, 2015 of the Company and its subsidiaries form part of the Annual Report.

Full Annual Report of subsidiaries of ONGC will be made available to any shareholder, if he/she desires, which is also available on Company's website. Further, Annual Reports of MRPL and ONGC Videsh are also available on website www.mrpl.co.in and www.ongcvidesh.com respectively.

7. Joint Ventures/ Associates

i. ONGC Petro-additions Limited (OPaL)

ONGC Petro-additions Limited (OPaL), has been promoted by your company asa Joint Venture (JV) Company, with envisaged equity stake of 26% along with GAIL (15.5%). gSpC also has a token presence in OPaL.

The balance equity of 58.5% is to be tied up with Strategic Partners/ FIs / IPO.

OPaL is a mega petrochemical project at Dahej SEZ for utilizing in-house production of C2-C3 and Naphtha from various units of ONGC.

Present status

* Overall Cumulative progress is 95 %.

* Total cumulative expenditure as on 31st March 2015 is Rs. 213,110 million. Approved project cost is Rs. 270,110 million.

* Debt closure has been attained for approved project cost of Rs. 270,110 million with the execution of Rupee Term Loan agreement.

* Phase-wise commissioning of the complex has commenced with stabilized operations envisaged in Q3 2015-16.

ii. ONGC Tripura Power Company Ltd (OTPC)

Your Company has promoted OTPC with an envisaged stake of 50% along with Govt. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL-an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with India Infrastructure Fund-II acting through IDFC alternatives Limited.

OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power Plant (CCCP) at Palatana, Tripura. The basic objective of the project is to monetize idle gas assets of ONGC in land-locked Tripura state and to boost exploratory efforts in the region.

Present Status

* OTPC's first unit (Unit-1) was dedicated to the Nation by the Hon'ble President of India on 21stJune, 2013 and its commercial operation was achieved on 4thJanuary 2014 in presence of representatives of beneficiary states. The second unit was dedicated to nation by Hon'ble Prime Minister of India on 1st December, 2014 and its commercial operation was achieved on 24th March, 2015.

The Plant has been granted provisional tariff by Central Electricity Regulatory Commission (CERC). The Ministry of Power has allocated more than 86% of power from the project (two units) to the NER beneficiary states while 98 MW is allocated to OTPC for merchant sales. The OTPC has signed a gas sale and purchase agreement (GSPA) with ONGC for supplying Daily contracted Quantity of 2.65 MMSCMD of gas.

* The 663 KM long 400 KV double circuit transmission network Palatana-Bongaigaon transmission has been commissioned up to Bongaigaon by North-East Transmission Company Limited (NETCL), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states. This development is helping in evacuating power from both Unit-1and Unit-2.

* The total expenditure incurred on the project till 31st March, 2015 is Rs. 37511 million against the total estimated cost of Rs. 40,470million.

iii. ONGC Mangalore Petrochemicals Limited (OMPL)

Your company has promoted OMPL which has set up Aromatic Complex with an annual capacity 914 KTPA of Para-xylene and 283 KPTA of Benzene in Mangalore Special Economic Zone as value chain integration project of ONGC. The total project cost is about Rs. 68,750 million and commenced commercial operation from 1st October, 2014. 2,59,618 MT of Para-xylene and 61,788 MT of Benzene, have since been exported in the financial year, as the production is being ramped up. After successful commissioning of OMPL in October, 2014, MRPL has increased its equity from 3% to 51.002% in February, 2015 with balance 48.998% held by ONGC and thus OmPL has become a subsidiary of MRPL.

iv. Dahej SEZ Ltd (DSL)

Your company as Lead Promoter has developed a multi-product SEZ at Dahej in coastal Gujarat .Your Company is setting up C2-C3 Extraction Plant on its own and value-chain integration project - OPaL through JV route in this SEZ Area. Your company has 23% equity in the project with GIDC having 26% and balance 51% is proposed to be tied up through IPO / Strategic / Financial Investor.

Present status:

* SEZ is already operational and units in SEZ have clocked export of Rs. 19,740 million in FY 2013-14 and Rs. 21,050 million in FY 2014-15.

v. Mangalore Special Economic Zone Limited (MSEZ)

With an envisaged equity stake of 26% along with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%), ONGC has set up MSEZ to serve as site for development of necessary infrastructure to facilitate and locate ONGC/MRPLs Aromatic complex being promoted by ONGC.

Present Status:

Commercial Operation Date (COD) has been declared on 1st April, 2015.

vi. Petronet MHB Limited (PMHBL)

* PMHBL is a JV company wherein your company has an

equity stake of 28.7% along with HPCL (28.7%) and PIL (7.9%) with balance 34.57per cent of equity being held by leading banks.

* PMHBL owns and operates a multi-product pipeline to transport MRPLs products to the hinterland of Karnataka.

* In FY'15 PMHBL pipeline has achieved a throughput of 3.141MMT against total throughput of 3.073 MMT last year. As per audited results for the year 2014-15, the turnover and PAT of PMHBL are Rs. 1,071 million and Rs. 341million respectively.

vii. ONGC TERI Biotech Limited (OTBL)

ONGC TERI Biotech Limited ( O T B L ) w h i c h w a s incorporated on 26th March, 2007 is a Joint-venture Company of ONGC in association with The Energy Research Institute (TERI), with shareholding of 49.98% & 48.02%, respectively. Through the efforts of joint research of oNgC & TERI over the years, OTBL is offering below mentioned technologies and providing various Biotechnical Solutions to Oil and Gas Industry, both in India and abroad:

OilzapperTechnology(Bioremediation)- used to eliminate & tackle Oil Spills, Oily Sludge, and hazardous hydro carbon waste;

Paraffin Degrading Bacteria (PDB)- used to prevent Paraffin Deposition in Oil well Tubing;

Wax Deposition Prevention (WDP)- used to prevent Paraffin Deposition in surface and sub-surface flow lines; Microbial Enhanced Oil Recovery (MeOR)- used for Enhanced Oil Recovery by mobilizing crude oil trapped in pores of Oil Reservoirs.

During 2014-15 the turnover of OTBL was Rs. 180.0 Million with Profit after Tax of Rs. 45.1 Million as against turnover of Rs. 141.0 Million and Profit after Tax of Rs. 44.8 Million in the previous year.

viii. Petronet LNG Limited (PLL)

ONGC has 12.5 per cent equity stake in PLL, identical to stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG terminal of PLL having a capacity of 10 MMTPA is currently meeting nearly 20 per cent of the total gas demand of the country. Dahej LNG Terminal is being further expanded from 10 MMTPA to 15 MMTPA. The construction activities continue as planned and the project is expected to be completed by end 2016.

A new LNG terminal of capacity 5 MMTPA has been set up at Kochi and has already been dedicated to the Nation.

The Company is also planning to set up an LNG terminal of capacity 5 MMTPA at Gangavaram, Andhra Pradesh. The turnover of PLL during 2014-15 is Rs. 395,010 million and net profit is Rs. 8,825 million.

ix. Pawan Hans Limited (PHL)

ONGC has 49 per cent equity stake in PHL (previously known as Pawan Hans Helicopters (A Government of India Enterprise) Limited). Balance 51 per cent equity is held by the Government of India. PHL is one of Asia's largest helicopter operators having a well-balanced operational fleet of 46 helicopters. It provides helicopter support for ONGC's offshore operations. PHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC.

8. Other New Projects/ Business initiatives C2-C3-C4 Extraction Plant

* Your company has set up a C2, C3 and C4 Extraction Plant at Dahej having a capacity to process 5.0 MMTPA Rich Liquefied Natural Gas (LNG) from M/s Petronet LNG Limited (PLL) as feed stock, for extraction of C2, C3 & C4 products.

* The plant will be commissioned shortly.

* These extracted C2, C3 and C4 products would be feed stock for ONGCs promoted Joint Venture OPaL in the same SEZ at Dahej. They would form 40 % feed stock for upcoming OPaL Project.

* However till the starting operations and stabilization of OPaL, ONGC shall be producing LPG by blending C3 & C4 in the requisite ratio and would be sold to Oil Marketing Companies.

9. Alliances & Partnerships for Business Growth

a. MoU between ONGC, BPCL, Mitsui and NMPT

ONGC along its consortium partners BPCL and Japanese conglomerate Mitsui signed a MoU with the New Mangalore Port trust (NMPT) on 18t h March, 2013. The MoU documents Port's No- Objection to carry out feasibility studies and intention to extend all cooperation to the consortium in this regard. The consortium has carried out the pre-feasibility study of the project and found that terminal is technically feasible and the same had been presented to NMPT Based on the report, NMPT has conveyed its no objection to the consortium, for carrying out detailed feasibility studies for the identified locations, subject to adherence to navigational safety requirements. Commercial prefeasibility study is being carried out.

b. MoU for setting up a Special Purpose Vehicle (SPV) for implementing Renewable Energy projects

Your company is likely to be a lead partner in a Joint Venture Company being set up through Special Purpose Vehicle (SPV) for implementing large scale grid-connected solar, wind and other renewable energy (including hybrid) power projects.

An MOU for creating such a JVC was signed on 25th February, 2014 between the Ministry of New & Renewable Energy and Ministry of Petroleum & Natural Gas, Govt of India.

This JVC shall be for grid connected renewable energy and would be led by ONGC as the lead partner with likely 26% equity and other Oil upstream companies like OIL and GAIL along with EIL, IREDA and SECI as partners, equity percentage of each one of them to be decided later. Feasibility study for formation of SPV has been done by EIL and report has been submitted to MoPNG.

10. Information Technology

Considering the need to ensure implementation of cutting edge technology in all areas of operations and to ensure data integrity and security, ONGC has deployed state-of-the-art IT tools and technologies. In a knowledge-driven and technology-intensive industry such as oil & gas E&P, information technology establishes the vital synergy across the company's many locations and varied workforce, essentially serving as its operations' lifeline. Many of the IT achievements of the Company are regarded as benchmarks in the industry in terms of implementation of widespread systems integration and process automation.

Highlights for the year 2014-15

* Consequent to allotment of transponder on GSAT 10 satellite in lieu of INSAT 3E by Department of Space, Govt. of India, Satcom stations were successfully migrated to GSAT 10 satellite using in-house capabilities. On the directive from MoP&NG, a meeting was held with representatives of Indian Space Research Organisation (ISRO) on 05.09.2014 to work-out the use of space applications in E&P sector. ISRO has constituted a five member team which will interact with ONGC team to work-out the use of space applications in E&P sector.

* ISO/IEC 20000: 2011 accreditation for IT Services has been extended to all locations covering entire ONGC, after successful external audit during 8th-12th September, 2014.

* Crisis Management Plan (CMP) for Countering Cyber Attacks and Cyber Terrorism prepared based on CERT-In template and got validated from security expert of CMC and submitted to EC for approval. CMP Incident Management team was constituted at corporate level, which will meet weekly or in case of requirement, to oversee resolution of incidents and discuss mitigation plans for upcoming / known threats & which are communicated by NCIIPC, CERT-in etc.

* Infocom has developed "O Drive" facility for ONGCians. With "O Drive" facility, documents can be stored in a centralized server which can be accessed from anywhere. This effort is alternative option to the usage of USB drives and thus contributes for Information security

* Developed a complete pipeline information system In-house and rolled out at Mehsana& Rajahmundry Assets. The system feature includes facility to view other geographical information such as nearby locations of hospitals, schools fire stations etc., facility to measure distance between any two points, liquid flow direction animation etc. Distinctive colours adopted for different type of lines. The facility can be accessed from anywhere on ONGC Intranet with user login authentication.

* Participated in the CERT-in simulated cyber- attacks based Cyber Security Drill on 23.12.2014, along with 47 other organizations, to assess ONGC preparedness to withstand the possible cyber-attacks. The Cyber Security Drill was completed successfully and Cyber Security Crisis Management Team was able to detect and analyze the incidents and inform CERT-in within given time.

* A portal for Public Grievances was developed in- house to facilitate public to launch their complaints online. This web-based Grievance redressal initiative of ONGC reinforces focus on Digital India project which aims to leverage technology to maintain the Citizen-Government Interface with the highest integrity. Through this portal, citizen/vendor/employee/former-employee can register their grievances relating to any operational wing of ONGC, through an online/single window system. Facility available for monitoring the complaint status by the complainer.

* A portal for JRM (Joint Review Meeting) of Technology and Field services was developed in- house to cater to the complete JRM requirements for conducting the meeting smoothly. JRM members can upload the presentations, tour program details, ATR for previous meetings etc. Notifications/ messages can be generated through this portal and be sent as SMS as well as mail to the members.

11. Health, Safety and Environment(HSE)

Safety, Occupational health and protection of environment in and around its workingareas are prime concerns of ONGC. ONGC has implemented globally recognized QHSE Management System conforming to requirements of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001(OHSAS) at ONGC facilities and certified by reputed certification agencies at all its operational units. During the year 2014-15, 412 Nos. of installations of ONGC were audited for certification/surveillance audit. Corporate guidelines on incident reporting, investigation and monitoring of recommendations was developed and implemented for maintaining uniformity throughout the organization in line with international practice.

A few highlights of HSE during 2014-15 are:

* Regular QHSE internal audits

* Fire safety measures including regular fire and earthquake mock drills

* Training on HSE related topics

* Environmental analysis

* PME of employees and Health Awareness programs

* Water and electricity conservation Noise and pollution reduction measures

* Material Safety Data Sheets(MSDS)

* Personal protective Equipment's(PPE)

* Solid waste management and Developing E- waste disposal procedure

* Identification and implementation of Environment Management Programmes (EMP).

* Occupation Health & Safety(OHS) programs as per need of the unit

* Energy conservation awareness through display and communication

* Accident near miss and Governance Risk Compliance (GRC) reporting.

* Mines Vocational Training for Petty Contractual Workers

ONGC is now an Accredited Environment Impact Assessment (EIA) Consultant organization by Ministry of Environment & Forest (MoEF) in Oil and Gas Exploration Development and Production in Offshore/Onshore areas and Petroleum refining industry.

Approval by DSIR

ONGC Institutes have received the renewal of recognition of In-house R&D unit by Department of Scientific and Industrial Research (DSIR) for a period of five years (valid till 31st March, 2018) on 26.03.2013. This will enable ONGC Institutes to continue claiming weighted deduction in Income Tax (200%) against the expenditure towards R&D activities.

Patenting R&D Work

1. One Patent proposal of IRS, Ahmedabad on "Process and composition for cleaning scale deposits of effluent dispatch lines" has been submitted to Centralized Patent Cell, KDMIPE in March, 2015.

2. Patent application has been made by CEWELL for patenting the innovative technique for TOC estimation. The TOC estimated by this technique in first shale gas well matches very well with TOC data obtained through laboratory study on cutting samples. This validates the new technique developed by CEWELL and its applicability in Indian basins.

12. Carbon Management & Sustainability Development

ONGC being one of the premier energy majors of the world and the highest profit earning PSU of India realises its responsibilities in ensuring sustained development through protection of the ecological system. It therefore strives to position itself as a leading organisation in sustainable management and is aiming to achieve sustainable development through a holistic approach to carbon management. ONGC believes that focused Carbon Management efforts are an ideal route to cover the elements of our business specific sustainable development issues across the environmental dimensions. A critical area of environmental sustainability is mitigation of global greenhouse gas from operations. It isan organizational objective for us to progressively reduce our carbon footprint by working towards reduction in both direct and indirect energy consumption.

Sustainable development requires contribution of all the societal players and with increasingly dominant role of modern day corporates; they can contribute significantly towards sustainable development. ONGC has created a small group called "Carbon Management & Sustainability Group" with a mandate for developing CDM projects, Sustainability reporting, Carbon & Water Management and focussed R&D in the area of low carbon. The following efforts undertaken by ONGC illustrate its commitment to Sustainable Development:

Project status:

1. Clean Development Mechanism (CDM):

ONGC commenced its CDM journey in 2006. Till date, ONGC has registered 12 CdM projects with UNFCCC. 2 new CDM projects validated and 2 already registered projects successfully verified for issuance of CERs.

Validation of New CDM projects

1. Gas Flare Recovery at GGS Chariali, Assam

2. Energy Savings by replacement of MOL pump at Neelam&Heera Asset

Verification & Issuance of Registered CDM projects

1. Gas Flaring Reduction at Uran Plant

2. 51 MW wind power project of ONGC at Surajbari

2. Carbon and Water Foot printing:

Carbon Foot printing:

GHG Accounting & GHG mitigation projects

Comprehensive company-wide GHG accounting had been completed for the base year 2010-11 and it is found that ONGC has 8,234,853 and 281,178 tons of CO2 emissions under Scope 1 - Direct Emissions and Scope 2 - Energy Indirect Emissions respectively. Based on the study, 11 focus areas and projects have been identified. It is proposed to undertake the feasibility study of eleven identified GHG mitigation projects.

Global Methane Initiative (GMI):

The Global Methane Initiative (GMI) is an action-oriented initiative from United State Environmental Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. The Global Methane Initiative facilitates cooperative mitigation activities that result in bringing more gas to markets through Identification, Quantification, and Reduction (IQR) path.

ONGC entered into a MoU with the USEPA in August 2007, to undertake Methane to Market (now GMI) projects in ONGC and over the years since its joining into the program, ONGC has formed a dedicated team and has procured methane emission detection and measurement equipment in order to undertake Fugitive Emission detection and quantification at its operating facilities and has reduced approx. 14 MMSCM over the years. This is equivalent to reductions of over 2 lakhs tCO2e emitting into atmosphere.

Fugitive emission Identification & Quantification (IQ) jobs have been completed as per Performance Contract (PC) targets. Assam Asset, Ankleshwar Asset &Hazira plant were mapped for fugitive emissions. The reports have been submitted to respective work centres to take corrective actions.

Water Foot printing:

Sustainable water management:

Every business depends and impacts on water resources. The future of business depends on the sustainability of water resources, which are increasingly under pressure. With freshwater supplies tightening due to overuse and more extreme weather patterns, business is coming under more pressure to measure and cut water use. ONGC is concerned towards the risks and benefits of water management and exploring new techniques to cut consumption. ONGC's Sustainable Water Management policy is based on philosophy of 4 "R" i.e. Reduce, Reuse, Recycle & Replenish. CM&SG is entrusted with the responsibility of steering SM projects across ONGC. CM&SG is working on following projects in this area:

Water footprint study in Ahmedabad Asset and IPSHEM, Goa:

For the first time an in-house footprint study has been done without engaging any external agency. The project was completed ahead of schedule.

Setting up sea water desalination plant at Uran:

LOA for techno-commercial and environmental feasibility study for proposed 20 MLD sea water desalination plant has been placed on M/s MECON India.

Setting up desalination plants at ONGC work centres located near coastal areas and at MRPL:

It is proposed to set up desalination plants at ONGC work centres located near coastal areas (Hazira Plant, Ankleshwar Asset, Cauvery Asset-Karaikal, Rajahmundry Asset & Eastern Offshore Asset-Kakinada) and at MRPL as a SWM measure, in order to mitigate future sustainability risk due to declining fresh water availability. It is proposed to initially conduct techno-commercial and environmental feasibility study and based on the affirmative outcome of the feasibility report, implementation of setting up desalination plant at the respective work centre may be undertaken.

Rain water Harvesting:

Rain Water Harvesting (RWH) projects are implemented/ being implemented at different work centres of ONGC under the umbrella of Sustainable Water Management. The harvested water is being used for beneficial use like gardening, toilet flushing, etc and also for recharging of ground water aquifers. The RWH projects have been taken up at Ahmedabad Asset, Tripura Asset, WOB Vadodara and IPSHEM Goa.

Sewage Treatment Plant (STP) at Mehsana Asset:

Administrative approval accorded for setting up three STP's (each of capacity 100 KLD) at ONGC Nagar, Mehsana. Finalization of scope of work and tendering process is being taken up by Mehsana Asset.

Produced Water Management at Mehsana Asset:

CM&SG and Mehsana Asset have jointly undertaken produced water management in a holistic manner through a Multi-disciplinary Team (MDT) under sustainable water management umbrella in line with EC decision.

Integrated Watershed/Check dam Management at Mehsana:

ONGC as a responsible corporate wants to expand its activities in sustainable water management beyond its operational boundaries. As a first step Mehsana Asset has been chosen as it is one of the worst affected regions as far as water scarcity is concerned. The project will be a CSR project in association with CM&SG, Mehsana Asset and local concerned authorities. The project is at present exists as a concept and implementation roadmap is being worked out.

SD through focussed R&D and collaborations

ONGC is committed towards reduction of greenhouse gases (GHG) emissions and is actively pursuing various R&D projects towards CO2 capture and sequestration in following ways:

* Sequestration by Algal biomass

* Conversion into useful products

ONGC has signed NDA (Non-Disclosure Agreement) with following Finnish agencies

* Ripasso Energy, Sweden in the field of Solar CSP-ST technology,

* Chempolis, Finland in the area of 3G bio refinery.

* Cleen, Finland in the area of CCSP, EFEU and BEST program

* VTT, Finland in the area of water management

At present, however, CM&SG has been pursuing the CCSP programme with CLEEN for the CO2 capture and reformation programme at Hazira plant.

Setting up of 3G Bio-refinery

ONGC is planning to setup a 3G bio-refinery (first of its kind in India) to meet the government mandate of E95 (blending of 5% ethanol to gasoline). To this effect, ONGC had signed NDA &MoU with Chempolis, Finland. This endeavor would create a new business dimension for ONGC. Chempolis had conducted feasibility study for the state of Punjab and the same is under consideration.

Carbon Capture & Sequestration

ONGC has also collaborated with CLEEN, Finland in the area of carbon capture and joined its program named Carbon Capture & Storage Program (CCSP). This program works on sharing knowledge among consortium members and working on the specific goals. Consortium agreement has been signed for ONGC specific work package at Hazira.

Solar power CSP-ST technology

Ripasso Energy has specific and unique expertise in the Concentrated Solar Power (CSP) technology. CSP technology is based on "Stirling Engine technology", a unit has a typical power output of 30 KW. An inherited modular design ideally suited for volume electricity production with an outstanding conversion efficiency of 32%, provides a number of benefits compared to other solar thermal technologies. CM&SG is in talk with Rippaso Energy for establishing a 3MW pilot solar power project at Gamnewala, Jaisalmer. The project proposal is under consideration.

Pilot project on CO2 sequestration through microalgae at Hazira plant

Algae have recently received a lot of attention as a new biomass source for the production of renewable energy. Some of the main characteristics which set algae apart from other biomass sources are that algae have a high biomass yield per unit of light and area, can have a high oil or starch content, do not require agricultural land, fresh water is not essential and nutrients can be supplied by wastewater and CO2 by combustion gas.

The pilot project was set up at Hazira plant with an aim to sequester CO2 from vent gas (released during sweeting process of sour gas) with the microalgae and convert into value added products. The results are encouraging which shows that 50% of the CO2 from the SRU vent could be absorbed by the absorption medium in the absorption column at a pressure of 0.5 Bar. The carbonated medium, when transferred to the raceway pond, inoculated with microalgal strain, showed appreciable algal growth (18 g/m2/day), which was harvested. The harvested biomass was tested at BITS Pilani, Goa Campus for the potential of bio-methane generation. It was found that the biomass have good potential of bio-methane generation. (336 Litre/ when fed with 0.5 KgVS /m3/day).

Waste to Fuel project (under Swach Bharat Abhiyan)

MoP&NG has desired to take a project on waste to fuel at Puri, Odisha under Swachh Bharat Abhiyan (SBA) as a part of Corporate Social Responsibility. The project being of specialized nature and involving technical expertise is being steered by CM&SG. Following steps were taken:

* MDT has been formulated to take project forward

* Meeting with Puri administration had been concluded.

* Draft Eol has been put up for approval before floating for identifying technology and prospective bidders.

Disclosing sustainability performance- Sustainability Reporting

Sustainability reporting, the practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development is being increasingly adopted by organizations. Sustainability Reporting is also believed to lead to improved sustainable development outcomes as it allows organizations to measure, track, and improve their performance on specific issues along the three bottom lines.

Published third party assured A sustainability report for ONGC group of companies including ONGC Videsh and MRPL (GRI-G3.0 complaint with Oil and gas sector supplement and BRR).

Capacity building & knowledge Dissemination

CM&SG has three tier knowledge dissemination approaches on carbon, water management and sustainable development.

* Annual Training Program at ONGC Academy

* Programs at Petrotech

* Awareness programs at different work-centers

Total seven awareness programs were conducted by CM&SG at CFB Silchar, RFB Jodhpur, Western Offshore Basin Mumbai, MBA Basin Kolkata, Cauvery Asset Karaikal, OB Vadodara and Cauvery & KG-PG Basin. Total 240 executives participated in the program.

A two day 3rd CM&SG meet was conducted at Goa in January, 2015 for an in depth interaction of CM&SG and SD officers from all ONGC work centers to strategize the pursuit of SD activities in ONGC.

A two day seminar on "Innovation for Sustainability Dividend" was conducted by CM&SG in association with Petrotech Society at Delhi during November, 2014. The seminar was attended by representatives across Indian oil & gas industries, institutes working in the sustainability and representatives from ONGC.

SD brochure was published during 3rd CM&SG meet. The brochure would be a communication tool to communicate ONGC's triple bottom line performance (economic, social and environmental) and sustainability practices. This brochure highlights the considerable work done in the sustainability space, SD initiatives and performance.

Film on Sustainability was unveiled during 3rd CM&SG meet by Governor of Goa in the presence of Director-I/c- CM&SG.This small film highlights the journey of ONGC in the pursuit of sustainable development.

Stake holder engagement meet

Two stakeholders engagement meets were organized to map and prioritise the key sustainability issues of ONGC. The first meet was meant for internal stakeholders who had prioritized the set of issues which would impact the business sustainability of ONGC. The second meet was for the external stakeholders who had prioritized the issues whose impacts on ONGC would impact their business sustainability. The outcome of the two reports, upon juxtaposition, has generated the key materiality issues of ONGC to work upon. This is the first time such an exercise was undertaken.

Other Initatives:

Corporate Waste Management Policy: Your company approved Corporate Waste Management Policy and the same will be reviewed after every three years.

* Trading policy on monetizing of CER shas been approved and will be operational shortly.

* Carbon Neutrality: ONGC has taken a conscious decision to reduce its carbon footprint as a part of its sustainable development programme. As a first step towards this mission, CM&SG has undertaken a maiden initiative to render the carbon footprints of three major areas neutralised for 2013-14. The areas are :

* Air travel of all ONGC employees including to and fro local surface transportation to airport.

* Consumption of electricity, paper, LPG and fuel for local transportation from IPE Campus, IDT, IEOT, IRS and IPSHEM

* Flaring and electricity consumption of Uran Plant. Carbon neutrality is essentially a concept of having a net zero GHG footprint of an activity. The entire process involved a detailed GHG accounting of the activity and offsetting the footprint. The total footprint of the activities is 1,37, 345 tons of CO2 equivalent and has been offset by retiring an equivalent quantity of carbon credits issued against the registered CDM projects of ONGC.

13. Business Responsibility Report - 2014-15

Securities & Exchange Board of India has introduced Clause 55 to the Listing Agreement with the Stock Exchanges, which states that Listed entities shall submit, as part of their Annual Report, Business Responsibility Report, describing the initiatives taken by them from an environmental, social and governance perspective. Accordingly, the third Business Responsibility Report - 2014-15 has been drawn up and forms part of the Annual Report for 2014-15.

14. Internal Control System

Your Company has a well-established and efficient internal control system and procedure. The Company has a well-defined delegation of financial powers to its various executives through the Book of Delegated Powers (BDP). The Integrated BDP is updated from time- to-time in line with the needs of the organisation as well as to bring further delegation. BDP has been revised during FY 14-15 and the same has been made effective from 01.01.2015. The Company has in-house Internal Audit Department commensurate with its size of operations. Audit observations are periodically reviewed by the Audit &Ethics Committee of the Board and necessary directions are issued whenever required.

15. R&D EFFORTS THROUGH ONGC ENERGY CENTRE TRUST(OECT)

Your company has taken steps to evaluate various forms of energy to fulfil the country's growing energy needs. Towards this end, your company has established an ONGC Energy Centre Trust (OECT), which is mandated to undertake or assist in programs / projects of fundamental and applied research for improving and developing commercially viable energy mediums and sources beyond hydrocarbons, especially in clean and/or renewable energy options. ONGC Energy Centre (OEC) has been set-up under the aegis of the OEC Trust to work on various clean energy options.

Your company through ONGC Energy Centre has been implementing several Research Projects on new and alternative sources of energy. These Projects are in advanced stages of implementation, in collaboration with various national and international academic, research and industrial organizations. The projects where your company is currently engaged in are:

a) Hydrogen Generation through Thermo-chemical Processes

b) Exploration for Uranium

c) Bioconversion of lignite to Methane

d) Bioconversion of Oil to Methane

e) Kinetic Hydro Power

f) Geothermal Energy

g) Solar Thermal Project

These apart, during 2014-15, ONGC Energy Centrehas also evaluated many new options to expand the research and technology development activities and also to focus on optimum utilization of resources available with ONGC. These efforts have been described in detail in the Annexure Con Energy Conservation.

Further, a Board Level Committee on Research & Development has been constituted. The first meeting of the Committee was held on 27.05.2015 and the terms of reference of the Committee have been approved.

16. Human Resources

Your Company values its Human Resources the most. To keep their morale high, your company extends several welfare benefits to the employees and their families by way of comprehensive medical care, education, housing and social security.

17. Employee Welfare

Your Company continues to extend welfare benefits to the employees and their dependants by way of comprehensive medical care, education, housing, and social security. Your Company continues to align company policies with changing economy and business environment.

Employee Welfare Trusts -

Your Company has established the following major Trusts for welfare of employees:- Employees Contributory Provident Fund(ECPF) Trust, manages Provident Fund accounts of employees of your Company.

The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pension fund of employees of your company which has been converted into a Defined Contribution Scheme as per DPE guidelines.In the converted Defined Contribution Scheme, the corpus in the individual employee account shall include employer/ employee contributions and interest thereon. The benefits under the Scheme are dependent on corpus in the individual employee account and accordingly, would be market determined which depends on interest rate, annuity price etc.

The Composite Social Security Scheme(CSSS)

formulated by your company provides an assured ex- gratia payment in the event of unfortunate death or permanent disability of an employee in service. In case of Separation other than Death/Permanent total disability, employees own contribution alongwith interest is refunded.

Gratuity Fund Trust exists for payment of gratuity as per the provisions of the Gratuity Act.

Your Company has a Sahayog Trust for its Sahayog Yojana to provide ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the Welfare of the workforce and their kin, who do not have adequate means of support. The beneficiaries under this scheme includes casual, contingent, daily rated, part time, adhoc, contract appointees, tenure based employees, apprentices and trainees employed by your Company besides regular and past employees. Under the scheme an amount of Rs. 5770 million were disbursed by the Trust during the year.

Extension of Benefits under the Asha Kiran Scheme to retired employees:-

The Asha Kiran Scheme was introduced to meet the emergency needs of the ex-employees retired prior to 01.01.2007, who are passing through distressful situation. The scheme was launched as per DPE guidelines by creating a corpus of 1.5% of PBT. During the year, under this scheme financial assistance of Rs. 1780 million was provided to 14698 ex-employee.

Persons with Disabilities

ONGC believes in affording equal opportunities to physically challenged people. As on 31.03.2015, there were 156 permanent employees with disabilities (0.5%) on the rolls of ONGC.

Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Castes(SC) and Scheduled Tribes (ST) employees were 15 percent and 9 percent respectively as on 31st March, 2015.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their upliftment in and around its operational areas:-

Annual Component Plan:

Under Annual Component Plan for SC/ST, every year an allocation of Rs. 200 million is made. Out of this, Rs. 60 million is distributed amongst all the Work centres of ONGC for taking up activities for welfare of SC/ST Communities in and around the areas of our operations. In addition, Rs. 140 million is managed centrally, and is earmarked for Special projects/ proposals/schemes for the welfare of areas/persons belonging to SC/ST communities. The amount under component plan is utilised for taking up various welfare measures for the welfare and upliftment of the needy people of SC/ST Communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical and Health Care.

Scholarship to SC/ST meritorious students

Your Company provides scholarships for meritorious SC & ST students from 100 to 500 for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo- Sciences. The major feature of the scheme is that the scholarships have been equally divided for both Boys and Girl students and the amount of scholarship has been made out to Rs. 4,000/- per month per student subject to the conditions of the scheme. The annual budget for the scheme on its total implementation is Rs. 76 million per annum.

18. Industrial Relations

During the year your Company maintained harmonious Industrial Relations throughout the Corporation. Mandays loss due to internal industrial action was reported as 'NIL' for the year 2014-15.

19. Grievance Management System (GMS) :

Your Company provides an easily accessible machinery to the employees for redressal of their grievances, either through informal channel (open hearing day) or through formal channel. On 26th January, 2015 a web-portal, "Public Grievance Portal", was launched, which will provide redressal of grievances of all stakeholders. This portal is a step further to empower each stakeholder viz. citizen/vendor/employee/former-employee to register their grievances related to any operational wing of ONGC, through a single window on corporate web portal. A structured apparatus has been operationalized to process the grievances within a limited time frame Public Grievance Management System

All Key Executives of your company have designated a publicized time slot thrice in a week to meet Public Representatives in order to speedily redress their grievances.

20. Implementation under the Right to Information Act

An elaborate mechanism has been set up throughout the organization to deal with requests received under RTI Act, 2005.There are two Central Public Information officers (CPIOs) based at the Registered Office at Delhi and 22 Central Assistant Public Information officers (CAPIOs) have been designated at different work centers across the country to redress the issues under RTI Act 2005.

69 applications were carried forward from the year 2013-14 to 2014-15. 1790 applications were received during the year 2014-15; making a total of 1859. In addition, 66 First appeals were carried forward from the previous year to financial year 2014-15 and 261 were received during the period. All the aforesaid 327 first appeals were disposed off by the appellate authority of ONGC and orders passed by the authority were complied with in stipulated time frame.

21. Implementation of Official Language Policy

Your Company makes concerted effort to spread and promote Official Language. In this effort some of the steps taken during the year were:-

(i) Company has introduced Unicode Hindi software in all our offices. (ii) Hindi workshops are conducted at regular intervals(iii) Hindi seminars and 'Kavi Gosthies' organized in Dehradun and Delhi. (iv) ONGC actively contributed in publishing bilingual Petroleum Terminology, initiated by MoP&NG. (v) Hindi Teaching Scheme of Govt. of India is effectively implemented at all regional work centres.

22. Human Resource Development

33,185 ONGCians (as on 31st March, 2015), which includes 26,656 executives and 9,529 non-executives, dedicated themselves for the excellent performance of your company during the year. The workforce intake strategy pursued by your Company caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, fast changing level of technology, physically challenging work environment, fluctuating product prices and growing competition. Your Company has drawn up a scientific manpower induction plan aligned to the business plans as well factoring the manpower profile of the Company.

Your company believes that continuous development of its human resources fosters engagement and drives competitive advantage. Towards that end, during the year, your Company conducted Business Games to hone the business acumen of its executives. Business Game has proved to be very popular initiative and tests the ability of the executives through business quizzes, business simulations and case-study presentations. During the year 2014-15, a total of 144 teams and 576 executives participated in the event. Fun Team Games (FTG) were organized for E0 and staff level employees to inculcate MDT(Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. A total of 75 Teams and 300 employees participated in FTG during the year 2014-15. The winners of Business Games and Fun Team Games were felicitated by the CMD on Republic Day Celebrations. Your Company also conducted the Assessment Development Centre (ADC) for 192 DGM level executives (0.81% of executives) and provided them developmental inputs. Your Company has partnered with global HR consulting firms to create a pool of accredited mentors in the organization. These mentors will support organization's effort to hone young minds to successfully respond to the emerging business needs of your Company. As part of this Initiative, in the year 2014-15, 36 mentorship workshops were conducted. Also, 123 mentors have been awarded Basic and Advanced level Accreditations for mentoring.

Training

Your Company attaches utmost importance to the development of its human resource.Your Company has branded the spectrum of its training activities as 'EXPONENT - a comprehensive Programme, which is nurturing the energy leaders of tomorrow. The growth of an ONGCian to an Exponent of energy business is facilitated by ONGC Academy, Regional Training Institutes and other specialised in-house training Institutes and world class training providers in India and abroad.

During the year , a total of 20084 Executives and 4729 non-executives were imparted appropriate training, spanning 176644 executive mandays (Number of executive mandays per executive per year: 7.49) and 16119 non-executive mandays (Number of non- executive mandays per executive per year: 1.69) during 2014-15 at all Work centres.

In order to absorb new and emerging technological advancements pertaining to oil and gas exploration and production, 85 programmes, including 26 foreign faculty programmes pertaining to functional disciplines, were organized with the best of faculties from India and abroad during the year.

To nurture the talent with the objectives to prepare future leaders of the organisation for taking up higher roles and address key organisational challenges, 338 executives of E7, E6 and E5 level were exposed to Leadership Development Program (LDP), Advanced Management Program (AMP) and Senior Management Program (SMP) respectively, the tailor made Management Programmes with overseas learning component through tie-ups with leading B- schools of the country.

23. Women Empowerment

Women employees constituted over 6 percent of your Company's workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its lady employees for programmes organized by reputed agencies.

Your company scrupulously complies with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013. Reported cases of Sexual harassment are inquired into by Complaint Committee constituted separately for all the work- centres, for taking disciplinary action against the delinquent employees.

24. Work-Life Balance:-

Your Company continued in its endeavors to ensure work-life balance of its employees. The townships at many work-centers were provided facilities like gymnasiums, music rooms, etc. Outbound programmes with families were also organized at various work-centers. Plays on the importance of Work-Life Balance' were staged to create awareness amongst the employees. In addition, cultural programmes involving employees and their families were also conducted. MahilaSamitis and Resident Welfare Associations (RWAs) were involved in the organization of these cultural programs. Your Company has a adventure wing named ONGC Himalayan Association which organizes adventure programmes like mountaineering, trekking, white water rafting, snow skiing, desert Safari, Aero sports etc. which adds towards morale, engagement, team spirit, camaraderie, stress management and spirit to explore unknown among the employees.

25. Sports

Your Company continued its large scale support for development of sports in the country in the form of job offers & scholarships to deserving sportspersons. Sponsorships to various sports associations / federations / sports bodies to organise sports events as well as develop infra-structure were also extended. Your Company extended support in 23 game disciplines to 170 players on regular rolls and 167 players on scholarship. The support has enabled many sportspersons to bring home laurels for the nation and the organisation. Some of the key achievements during the year are given below:

Your Company was conferred the prestigious Rashtriya Khel Protsahan Puruskar by Hon'ble President of India Mr. Pranab Mukherjee at a glittering ceremony in Rashtrapati Bhavan on the occasion of National Sports Day on Friday 29th August , 2014. CMD Mr. D.K.Sarraf received the honour from the President.

Two ONGCians were conferred with the prestigious "Arjuna Award" for the year 2014; Ms. Heena Sidhu in Shooting and Mr. V Diju in Badminton. The total number of National Awardees in the organization stands at 24 (KhelRatna - 1, Padma Shri - 2 & Arjuna - 21)

In Commonwealth Games 2014 held at Glasgow (UK) a total of 20 ONGC athletes had participated in this 12 day long mega event and bagged 6 medals (1 Gold, 3 Silver & 2 Bronze) which is a pretty healthy success rate In Asian Games 2014 held at Incheon (Korea) a total of 40 ONGC athletes had participated and bagged 13 medals (4 Gold, 1 Silver & 8 Bronze).

Mr.Sourav Kothari won the Gold Medal at the Asian Billiards Championship.

Your Company was awarded the prestigious FICCI Certificate of Excellence for the "Award for long time contribution to Indian Football" for the year 2014 [this is the first time in the history that an organisation has been awarded successive FICCI Awards].

Mr. Pankaj Advani of ONGCwon 12th world title in cue sports. In the year 2014-15 he won World Billiards title in time & point format, 6 red world snooker championship and World team Billiards Championship.

Ms. Rashmi Kumari of ONGC won the singles title of world Cup (women) in carom.

26. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your company is fully engaged in ensuring equitable and sustainable growth of society in and around the area of its operations besides complying with government directives to discharge its social responsibility as a leading Indian corporate. CSR activities are essentially guided by project based approach in line with the provisions of Companies Act, 2013 promulgated by Ministry of Corporate Affairs and Companies (CSR Policy) Rules and the guidelines on CSR& Sustainability issued by Department of Public Enterprise, Government of India. Seeking to herald an inclusive business paradigm, ONGC has CSR interventions that are based on social, environmental, and economic considerations and are well-integrated into the decision-making structures and processes of the organization.

Pursuant to enactment of Companies Act 2013 and Companies (CSR Policy) Rules 2014 by Ministry of Corporate Affairs and Guidelines on CSR and Sustainability by Department of Public Enterprise, the CSR Policy has been approved by the Board of Directors. The same is uploaded on the Company's website.

Further, in line with the approval of the Board, ONGC has set up and registered ONGC Foundation under the Societies Registration Act, for carrying out CSR activities. Necessary steps are on hand to recruit manpower for making ONGC Foundation an effective tool for implementation of CSR policy of ONGC. Pursuant to Rule 9 of Companies (Corporate Social Responsibility Policy) Rules, 2014 the Annual Report on CSR activities is annexed herewith as Annexure 'C'. CSR ACTIVITIES UNDERTAKEN BY ONGC BASED ON ITEMS LISTED IN SCHEDULE VII OF THE COMPANIES ACT, 2013

* Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and including contribution to Swachch Bharat Kosh set up by Central Government for promotion of sanitation, making available safe drinking water:

* Promoting education, including special education and employment enhancing vocation skills. Especially among children, women, elderly, and the differently abled and livelihood enhancement projects.

* Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups.

* Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to clean Ganga fund set up by the central government for rejuvenation of river Ganges.

* Protection of national heritage, alt and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional and handicrafts

* Measures for the benefit of armed forces veterans, war widows and their dependents.

* Training to promote rural sports, nationally recognised sports, Paralympics sports and Olympic sports.

* Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste& the Scheduled Tribes, other backward classes, minorities and women.

* Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government.

* Rural development projects.

* Slum area development.

In the last 7 years, your company has contributed Rs. 18,807 Million towards its well-structured and well- focussedCSR activities.

Out of the CSR Budget of Rs. 6,606.12 million, ONGC spent an amount of Rs. 4,952.29 million in FY 2014-15. This translates to overall utilization of 74.97% of the CSR Budget.

Reason for non-utilization of full CSR budget:

* Major Initiatives undertaken were mostly in transition phase so the allocated earmarked budget could not be spent.

* Some of the flagship projects undertaken were of long gestation period with budget spread over 3-5 years thus resulting in lesser utilisation of earmarked budget for the financial year 2014-15.

Some of the landmark CSR initiatives under implementation during the year 2014-15 by your Company include:

(a) Healthcare:

(i) Varisthajana Swasthya Sewa Abhiyan: ONGC and Help-Age India Initiative

To provide basic medical facilities to elderly in terms of medical consultancy, medicine distribution, basic diagnostic test, special health camp and palliative care at their doorstep. A total of 20 Mobile Medicare Units (MMUs) are engaged for taking basic healthcare to the doorsteps of the elderly in nine states, 17 Districts, 35 blocks and 131 Gram Panchayat and 240 villages of India. A total of 11,86,020 beneficiaries were treated for chronic illness such as Hypertension, Diabetes, Osteoarthritis, Dyspepsia& Skin problems etc.

(ii) Community Hospital in Lakhimpur- Kheri, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of Rs. 45 million contribution by ONGC and Opex borne by the Operating Partner. This 26 bedded Community Hospital would cater to Primary and Secondary Health Service Requirements from BPL, Economically Backward Class families. Healthcare services are being provided at 50% less cost than the existing CGHS rates.

(iii) Aids and Appliances to person with disability:

This is a Pan India CSR project undertaken in association with Artificial Limbs Manufacturing Corporation of India (ALIMCO) and Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS), Jaipur commonly known as Jaipur Foot benefitting 45,495 Person with Disabilities. Beneficiaries were provided Orthopedic, Hearing and Visually Aids and Appliances. The total financial implication of the project was '262 million covering 39 ONGC operational areas and 61 Backward Districts in Phase-I of the project which concluded in the financial year 2014-15.

(iv) Government General Hospital (GGH), Kakinada:

ONGC has given financial assistance of Rs. 19 million to construct a separate building for blood bank and to equip the hospital with additional equipment for blood bank, general surgery and general medicine departments. This will immensely benefit people of East Godavari District where ONGC has a substantial operational presence

(v) ONGC Mission Ujala:

The project envisages eye screening of 50,000 children in Government Schools in NCR under National Blindness Control Programme of Govt. of India in collaboration with reputed NGO PRAANI. Spectacles to 3,000 children detected with refractive errors along with medicines were provided under this project.

(b) Education & Vocational courses:

i. ONGC-GICEIT Computer Education Program:

Through this project, employment- related free computer education is being imparted to economically underprivileged Youth. The project is implemented in association with Bhartiya Vidhya Bhawan's Gandhi Institute of Computer Education and Information Technology, (GICEIT) at five work centres of ONGC located at Mehsana, Dehradun, Nazira, Karaikal and Rajahmundry. More than 8295 students have received computer training through these centers in the financial year 2014-15.

ii. ONGC-The Akshaya Patra Foundation:

A centralized fully automated mechanized kitchen is being set up to provide mid-day meals to school going children (enrolled in Govt. schools) in the District of Surat. This kitchen was inaugurated by the Hon'ble Chief Minister of Gujarat Smt Anandiben Patel on 15th Feburary, 2015. This kitchen has capacity to feed 2,00,000 children per day. The enrolment as on 31st March, 2015 is 1,90,840.

iii. Community School at Sitapur, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of Rs. 27 million contribution by ONGC and Opex borne by the Operating Partner- Shanti Devi Memorial Charitable Trust.

iv. ONGC Super 30

"ONGC Super 30" is a residential Coaching Programme for IIT aspirants based at Sivasagar Assam. The total cost of the project is Rs. 6.70 million. The initiative was conceived to cater to underprivileged and below poverty line students who are unable to get proper coaching to qualify engineering exams due to lack of resources and funds.

(c) Projects for Physically and Mentally challenged

i. ONGC Centre for vocational rehabilitation for the differently abled:

A financial support of Rs. 13 million has been provided to Tamana School of Hope, Vasant Vihar, New Delhi for setting up of Autism Centre and provide vocational training for the mentally challenged young adults and children working for their economic rehabilitation by teaching relevant vocational skills to them.

ii. ONGC -Cheshire Home Project for Physically and Mentally Challenged:

A project on health rehabilitation and allied services for economically disadvantage children with disabilities living in slums area of Mumbai undertaken with Cheshire Homes (India) Mumbai with financial assistance from ONGC. Children with Disabilities were identified from areas of Hanuman Nagar, Damu Nagar and Shivaji Nagar covering 3 slum communities and provided with rehabilitation treatment and aids with an objective to help them lead a normal life.

(d) Environment Sustainability:

i. Eastern Swamp Deer Conservation Project (Phase II) :

The phase II of the project includes capture of Eastern Swamp Deer from the source i.e Kaziranga National Park and translocate them to Manas National park. This is a research based project to conserve and increase the viable population of Eastern Swamp Deer in their natural habitat at Manas National Park. The total cost of the project is Rs. 8.9 million.

ii. Harit Moksha: Green Cremation System

This is a unique CSR initiative of ONGC undertaken with MokshdaParyavaranEvam Van SurakshaSamiti (MPEVSS) to reduce wood consumption during traditional cremations through Mokshda Green Cremation Systems (MGCS). The project includes installing 30 units of green cremation system in 8 cities of 7 different states with a budget of Rs. 92 million . The project helped in saving approximately 13,700 tonnes of wood & reduced 26,500 tonnes of GHG emissions till date.

(e) Development of Backward Districts:

The sustainable development project is being implemented in Jaisalmer, a backward district in Rajasthan. Project involves setting up of 49 Wind Turbine Generators (WTG) each of capacity of 2.1 MW with total capacity of 102.9 MW in association with M/S Suzlon Energy Ltd. ONGC contribution towards the project is Rs. 5620 million. 22 nos. of WTG have been installed.

(f) Women Empowerment:

ONGC as a leading organization and among the founder member of Women in Public Sector (IPS) established way back in 1990 under the aegis of SCOPE has always spearheaded women empowerment Initiatives. Women Development Forum (WDF) an internal wing of ONGC women Employees was also formed in line with WIPS to encourage women employee to explore their potential to the fullest.

The basic aims and objectives of WIPS are:

* To promote the growth and development of Women in Public Sector.

* To assist the Public Undertakings in optimising the full potential in omen employees.

* To play a catalytic role in improving the status of Women in and around PSEs

Women in Public Sector (WIPS) presented ONGC with the Best Enterprise Award for Women Empowerment consecutively for 3 years till 2014. In the year 2015 ONGC was awarded the second prize for the same category.

(g) Other CSR Initiatives:

i) Hortoki Water Supply Scheme: The project aims to create a sustainable source of safe drinking water to the people of Hortoki Village, Kolasib District, Mizoram. A massive 1.7 Lakhs litre water tank was constructed as part of the project to supply more than 40 lpcd of water till 2043. ONGC has extended support of Rs. 9 million for the project. More than 450 households of Hartoki village are benefited through this project

ii) Rajeev Gandhi International Sports Complex, Dehradun: ONGC in association with Govt. of Uttarakhand is working towards building a Cricket stadium-cum-sports complex with a capacity of 30,000 people extendable to additional seats in future, car parking, a sports academy, a club house or Gymnasium, restaurant and other auxiliary facilities. ONGC has extended financial support of Rs. 500 million towards the project. The project is expected to be completed in two years.

iii) Dashrath Stadium at Agartala: The project aims to create an Indoor sports complex in association with DDO Directorate of Youth Affairs. ONGC has extended support of Rs. 243 million for the project.

iv) IIIT, Agartala: ONGC has extended support of Rs. 30 million for setting up a new IIIT Campus in Agartala.

In addition to above major CSR initiatives undertaken in 2014-15, ONGC has partnered with many NGO and other non- profit organization in implementing several other CSR initiative across our country. All work centres of ONGC have designated CSR office to take care of the local needs.

As a testimony to our CSR efforts, your company has won many laurels such as:

1. Golden Peacock Award 2014 for CSR during 9th International Conference on Corporate Social Responsibility-2014

2. ABP News Global CSR Excellence & Leadership Award for Best Overall CSR practices

3. 4th Annual Greentech CSR Platinum Award 2014 in petroleum exploration sector

4. Madan Mohan Malviya Golden Award for outstanding contribution in the field of Education

5. P L Roy CSR Award on 'International Day of Olde Persons' for support to the elderly through its CSR initiative 'Varishthajana Swasthya Sewa Abhiyan'

27. ACCOLADES

Consistent with the trend in preceding years, your Company, its various operating units and its senior management have been recipients of various awards and recognitions. Details of such accolades are placed at Annexure - 'D'.

28. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, with respect to Directors' Responsibility Statement, it is hereby confirmed that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2015 and of the profit of the Company for the year ended on that date;

(iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) The Directors have prepared the annual accounts of the Company on a 'going concern' basis;

(v) The Directors have laid down internal financial controls which are being followed by the company and that such internal financial controls are adequate and are operating effectively; and

(vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating.

29. CORPORATE GOVERNANCE

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by various stakeholders. The practices emanate from the need to position multi-layered checks and balances at various levels to ensure transparency of its operations in the decision making process.

In terms of Clause 49 of the Listing Agreement, a report on Corporate Governance for the year ended March 31st March, 2015, supported by a certificate from the Company's Statutory Auditors confirming compliance of conditions, forms part of this Report.

ONGC has implemented the mandatory Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance to the maximum extent possible.

In terms of section 204(1) of the Companies Act, 2013, the Company has engaged M/s P P Agrawal & Co., Company Secretaries in whole-time practice as Secretarial Auditors for conducting Secretarial Compliance Audit for the financial year ended 31st March, 2015. Their report forms part of this Annual Report.

With regard to the observations of Secretarial Auditors as contained in their report, it is submitted that ONGC being a Government company, all directors on the Board of the company are appointed by Government of India. The matter relating to appointment of requisite numbers of Independent Directors has already been taken up with the Government.

The Company has formulated and uploaded the following policies/codes on its website in line with the Companies Act, 2013 and Listing Agreement:

(a) Code of Conduct for Board Members and Senior Management Personnel

(b) Related Party Transactions Policy & Procedures, 2014

(c) Material Subsidiary Policy

(d) The Code of Internal Procedures and Conduct for prohibition of insider trading in dealing with the securities of ONGC

In line with global practices, your Company has made available all information, required by investors, on the Company's corporate website www.ongcindia.com Apart from the mandatory measures required to be implemented as a part of Corporate Governance, ONGC has gone the extra mile in this regard for the benefit of its stakeholders:

i. Whistle Blower Policy / Vigil Mechanism: A total of 35 Protected Disclosures till 31.03.2015 have been processed through the histle Blower mechanism of ONGC which was implemented from December 01, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is applicable to all employees of the Company and has been uploaded on the intranet of the Company.

In addition, the Company has a full-fledged Vigilance Department, which is headed by Chief Vigilance Officer who holds the rank of a Functional Director of the Company. With a view to maintain his independence, the CVO reports to the Chief Vigilance Commissioner of the Government of India.

ii. Enterprise-wide Risk Management (ERM) framework: In line with the requirements of Clause 49 VI of the Listing Agreement, your Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM) Policy throughout the organization. The Audit & Ethics Committee periodically reviews the risk assessment and minimization process in ONGC.

The Risk Management policy of your Company is as follows:

"ONGC shall identify the possible risks associated with its business and commits itself to put in place a Risk Management Framework to address the risk involved on an ongoing basis to ensure achievement of the business objective without any interruptions.

ONGC shall optimize the risks involved by managing their exposure and bringing them in line with the acceptable risk appetite of the Company"

The Board of Directors have constituted a Board Level Risk Management Committee in terms of Clause 49 of the Listing Agreement. The first meeting of the Committee was held on 19.03.2015 wherein the risk appetite and present risk profile, development of risk register to comply with clause 49 of the listing agreement and Companies Act, 2013, Risk Management Policy in ONGC, Risk Reporting structure, Risk Management / mitigation process, Governance Risk Management & Compliance (GRC) module roll-out through SAP, Review of risk register and identification of new & emerging risks, categorization and quantification of risks and role of internal audit in ERM etc were reviewed.

iii. Meeting of Independent Directors: No Meeting of Independent Directors was held during 2014-15.

iv. Certificate of Independence by Independent Directors: The Independent Directors have submitted declaration that they meet the criteria of Independence as per section 149(6) of the Companies Act, 2013.

30. STATUTORY DISCLOSURES

Your Directors have made necessary disclosures, as required under various provisions of the Act and Clause 49 of the Listing Agreement.

Extract of Annual Return

As per requirement of section 92(3) of the Companies Act, 2013, the extract of the annual return in form MGT- 9 is placed at Annexure-E.

Particulars of Employees

ONGC being a Government Company, the provisions of section 197(12) of the Companies Act, 2013 and relevant Rules shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs.

The terms and conditions of the appointment of Functional Directors is decided by the Government of India. The salary and terms and conditions of the appointment of Chief Financial Officer (CFO) and Company Secretary, KMPs of ONGC, is in line with the parameters prescribed by the Government of India. Performance Related Pay of Functional Directors and other employees including CFO & Company Secretary (KMPs) is in line with the guidelines of Department of Public Enterprises, Government of India.

31. ENERGY CONSERVATION

The information required under Section 134(m)of the Companies Act, 2013, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is annexed as Annexure - 'F'.

32. AUDIT AND ETHICS COMMITTEE

In compliance with section 177(8) of the Companies Act, 2013, the details regarding Audit & Ethics Committee is provided under Corporate Governance report which forms part of this Annual Report. There has been no instance where the recommendations of the Audit & Ethics Committee have not been accepted by the Board of Directors.

33. AUDITORS

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s Mehra Goel & Co, New Delhi, M/s G D Apte & Co, Mumbai, M/s Lodha and Co, Kolkata, M/s Varma & Varma, Chennai and M/s Khandelwal Jain and Co, Mumbai Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2014-15. The Statutory Auditors have been paid a remuneration of Rs. 25.01 million (previous year Rs. 22.92 million) towards audit fee and certification of Corporate Governance Report.The above fees are exclusive of applicable service tax and reimbursement of reasonable travelling and out of pocket expenses actually incurred.

34. Auditors' Report on the Accounts

The Comments of Comptroller & Auditor General of India (C&AG) form part of this Report and are attached as per Annexure-'G'. There is no qualification in the Auditors Report and there are no supplementary comments by C&AG under section 143(6)(b) of the Companies Act, 2013 on the Financial Statements of the Company. Notes to the Accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further comments. You would be pleased to know that your Company has received Nil comments from C&AG and Statutory Auditors for the year 2014-15. This is the ninth year in a row that the organization has received Nil comments.

35. COST AUDIT

Six firms of Cost Accountants were appointed as Cost Auditors for auditing the cost accounts of your Company for the year ended 31st March, 2015 by the Board of Directors. The Cost Audit Report for the year 2013-2014 has been filed under XBRL mode on 25.09.2014 which was well within the due date of filing (i.e.30.09.2014).

36. DIRECTORS

POLICY ON DIRECTORS' APPOINTMENT ETC.

ONGC being a Government Company, the provisions of section 134(3)(e) of the Companies Act, 2013 shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs.

PERFORMANCE EVALUATION ONGC being a Government Company, the provisions of section 134(3)(p) of the Companies Act, 2013 shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs.

APPOINTMENTS / CESSATION ETC

Since the 21st Annual General Meeting held on

19.09.2014, Shri P Uma Shankar, Shri S. Ravi and Shri R.K. Singh (Independent Directors) vacated their office on 19.09.2014 (FN) in terms of Section 161 of the Companies Act, 2013. The tenure of Prof. Samir Kumar Barua and Shri Om Prakash Bhatt (Independent Directors) concluded on 13.12.2014.

On being appointed as Managing Director of ONGC Videsh Ltd, Shri N K Verma relinquished the charge of Director (Exploration), ONGC on 27.08.2014. Shri U.P Singh, Additional Secretary (Exploration), Ministry of Petroleum & Natural Gas, joined the Board as Government nominee Director on 16.10.2014 in place of Shri Aramane Giridhar. Shri A.K. Diwivedi took over as Director (Exploration) on 16.03.2015.Shri A. K. Banerjee, relinquished the charge of the post of Director (Finance) on attaining the age of retirement on 30.04.2015. Ms. Atreyee Das was appointed as Government Nominee Director on 14.05.2015.

On being appointed as Secretary, Department of School Education and Literacy, Dr. S.C. Khuntia, Special Secratary, MoP&NG and Government nominee resigned from the Directorship of ONGC on

26.06.2015. Shri Ashok Varma, Director (Onshore) relinquished the charge of Director (Onshore) on 31.07.2015 on attaining the age of superannuation and Shri V P Mahawar, who has been appointed as Director (Onshore) by Ministry of Petroleum & Natural Gas, Government of India, took over charge on 01.08.2015. The Board places on record its deep appreciation for the excellent contributions made by Shri P. Uma Shankar, Shri S. Ravi, Shri R.K. Singh, Prof. Samir Kumar Barua, Shri Om Prakash Bhatt, Shri N. K. Verma, Shri Aramane Giridhar, Shri A. K. Banerjee, Dr. S.C. Khuntia and Shri Ashok Varma during their tenure.

The strength of the Board of Directors of ONGC as on 1st August, 2015 is 9, comprising 6 Executive Directors (Functional Directors including CMD) and 3 Non- Executive Directors i.e. two Government nominees and one Independent Director. Ministry of Petroleum & Natural Gas has been requested to appoint requisite number of independent Directors to comply with the provisions of Companies Act, 2013 and Listing Agreement. A total of 13 meetings of the Board of Directors of ONGC were held during the financial year 2014-15.

Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of The Companies (Accounts) Rules, 2014:-

Shri A. K. Srinivasan was appointed as Chief Financial Officer w.e.f.06.05.2015 and as Key Managerial Personnel w.e.f. 28.05.2015.

Shri N. K. Sinha, Company Secretary superannuated on 30.06.2015 on attaining the age of retirement. Shri V. N. Murthy took over as Company Secretary on 01.07.2015.

37. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Statutory Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and members of the ONGC Family for their faith, trust and confidence reposed in ONGC.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

For and on behalf of the Board of Directors

Place : New Delhi (Dinesh Kumar Sarraf) Date : 1st August, 2015 Chairman & Managing Director

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Mar 31, 2014

Dear Shareholders,

It gives me great pleasure to present, on behalf of the Board of Directors of your Company, the 21st Annual Report on the business and operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its Audited Statements of Accounts for the year ended March 31, 2014, together with the Auditors'' Report and Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.

Your company along with its group companies has witnessed yet another year of sustained performance, success and growth not only in its core activities of Exploration and Production (E&P) of crude oil and natural gas but also in other areas where we have engaged ourselves significantly.

Your company registered an increase of 5.6% in its PAT despite allowing highest ever discount towards under- recoveries of Oil marketing company (OMCs) at Rs. 563,843 million.

The domestic production by ONGC including its share in JV-PSC during FY''14 was 50.86 MMToe which is about 1% lower than FY''13 production (51.47 MMToe). Your company has been making all efforts to arrest the decline in the production from its matured fields through various measures like IOR and EOR. The company has made commendable performance in the core area of exploration by registering Reserve Replacement Ratio of 1.87. All efforts are being made to bring various marginal fields to production to ensure sustained production performance.

A brief recap of the main achievements during this fiscal are:

- ONGC Deepwater drilling group set a world record of drilling deepest ultra-deepwater well by successfully reaching the target depth of 7725 m. The well KG- DWN-2005/1-D-1 drilled by the Rig DDKG1 has set two records – firstly, the world record of well at the deepest water depth of 3174m and secondly, drilling the deepest offshore well of 7725m.

- The fiscal saw your company completing and successfully putting on production its first deep water sub-sea well G1-11 in Eastern Offshore through an Early Production System (EPS). This has been accomplished by your company ensuring that the production volume from the well got realized within shortest possible time after its completion by connecting it with existing facilities of Odalarevu GCS near Kakinada temporarily through 2x10" subsea pipelines.

- For the first time, your company has adopted easy cost planning for workover operation on Pan-India basis in SAP system throughout ONGC.

- Your Company accreted 84.99 MMToe of ultimate reserves in the domestic fields (ONGC operated); the highest in the last twenty three years.

- For the 9th consecutive year your company maintained the Reserve Replacement Ratio (RRR) of more than 1. RRR during the year has been 1.87.

- The Turnover of the Company stood at Rs. 842,028 million, the highest-ever. The turnover of the ONGC Group at Rs. 1,782,051 million has also been the highest-ever.

- Your Company recorded a Net Profit of Rs. 220,948 million during the year under review, 5.6% higher than 2012-13 (Rs. 209,257 million).

- ONGC Videsh Limited (ONGC Videsh), wholly owned subsidiary of your Company, which had in the recent past shown downward production volume realization owing to extraneous geo-political situations in Sudan & Syria, has recorded a 26% increase in crude oil production this fiscal mainly on account of resumption of production from Sudan and also new production stream from ACG, Azerbaijan and acquisition of additional 12% PI in Block BC-10 in Brazil.

- ONGC Videsh recorded highest-ever Net Profit of Rs.44,453 million.

- Your company''s subsidiary Mangalore Refinery and

Petrochemicals Limited (MRPL), has been upgraded to Schedule-A Category-1 Mini-Ratna Company by the Department of Public Enterprises (DPE), Government of India (GOI), thereby giving MRPL enhanced administrative and financial autonomy.

- MRPL recorded the highest-ever thru''put of 14.6 MMT against an MoU target of 14.5 MMT, thus securing ''Excellent'' rating in achievement of its MOU targets.

- MRPL has posted a net profit of Rs.6010 million, an increase of 179% from last fiscal''s loss of Rs. 7569 millions.

- Pursuant to the decision of the Government of India to divest 10% of the equity share capital of Indian Oil Corporation Ltd, ONGC acquired 5% equity shares of Indian Oil Corporation Limited amounting to 121,397,624 equity shares of Rs. 10 each @ Rs. 220/- per share. The consideration amount of Rs. 26,707 million has been paid to the Government of India. Necessary disclosures in this regard have been submitted to Stock Exchanges.

During 2013-14, your company had to share the highest-ever contribution of Rs. 563,843 million (an increase of Rs. 69,636 million i.e 14% over the previous year) towards the under-recoveries of OMCs. This has impacted your Company''s Profit Before Ta x by Rs. 477,561 million and Profit after Ta x by Rs. 315,238 million. However, your Company has been able to achieve Net Profit of Rs. 220,948 million during 2013-14, which is 5.6% higher than the profit of 2012-13.

Global Recognition

You will be pleased to know that your Company has been ranked at 176th in the 2014 Forbes Global 2000 list of world''s biggest companies. As per the Platts 2013 rankings, your Company is ranked 3rd largest listed E&P Company in the world and ranked 22nd Energy Company of the world based on Asset, Revenue, Profit & ROCE. Your company has been adjudged one of the

Fortune World''s most Admired Companies of 2014 as per CNN Money. There are only two companies from India in the list and your company is the only PSU in that coveted list. CNN Money has further ranked your company 369th in its Fortune Global 500 (2013) list by Revenue among global 500 companies. Adding to our global credentials is the fact that this year also your company has been awarded ''Randstad Award 2013'' for

Most Attractive employer in the Energy Sector in India.

As a fitting acknowledgment of your Company''s green credentials, you will be pleased to learn that ONGC has registered one of the largest Clean Development Mechanism (CDM) projects in the world when it got "the ONGC Tripura Power Company Limited (OTPC)" registered with the United Nations Framework Convention on Climate Change (UNFCCC). This 726.6 MW gas-based power generation plant in Tripura is a fuel-substitution project, which would mitigate over 1.6 million tons of Carbon-dioxide emissions per year for the next 10 years. In addition, your company has registered its 11th CDM project - the Green Building Project at Kolkata, with the UNFCCC. The project, like its two predecessors (Green Building Projects at Mumbai and Dehradun), has been registered for 21 years and once commissioned, will fetch 1861 credits per annum.

Performance: 2013-14

Exploration

During the year, your Company made 14 oil and gas discoveries in domestic fields (operated by ONGC). Out of 14, 7 discoveries are in offshore and 7 in onshore; 6 discoveries were made in the new prospects whereas 8 were new pool discoveries. 5 discoveries were made in NELP blocks and 9 in nomination blocks. Out of the discoveries made this year, 2 are oil bearing, 9 are gas bearing and 3 are both oil & gas bearing.

In addition to these discoveries, 32 more exploratory wells drilled for delineation/appraisal of known pays in existing fields were hydrocarbon bearing and have resulted in field growth.

Out of 7 on-land discoveries made during 2013-14, 4 discoveries (Gandhar-686, Sobhasan-300, Nandasan-111 & Geddanapalli-3) have already been put on production and efforts are on for bringing the other discoveries on production as early as possible.

Five discoveries in NELP blocks (one onland and four offshore) are governed by the PSC guidelines and appraisal/development activities will be taken up keeping in view the time lines of the respective blocks. Details of the discoveries are as under:

Sl. Name of the well Hydro- Basin Block Type & Block Name Pool/ No carbon Prospect Type

New Prospects Discovery

1 KGOSN041NANL #1 Gas KG(Shallow Water) NELP;KG-OSN-2004/1 Prospect

2 KGOSN041NANL#2 Gas KG (Shallow Water) NELP ; KG-OSN- 2004/1 Prospect

3 Seripalem-1(SRM-AA) Gas KG Onshore Nomination; Godavari On-land PML Prospect

4 MBOS51NAA#1 Gas Western Offshore NELP; NB-OSN-2005/1 Prospect

5 Mandapeta South # 1 (MDS-AA) Gas KG Onshore Nomination; Godavari on-land PML Prospect

6 NW-B173A-8 Oil & gas Western Offshore Nomination; South & East Bassein PML Prospect

New Pool Discovery

7 GK-28 # 9 Gas Kutch (Shallow Western Offshore Pool Water); GK-28 PML

8 GK-42 # 3 Gas Kutch (Shallow Western Offshore Nomination; Pool Water); GK-28 PML

9 Gandhar # 686 Oil & Gas Western Onshore Nomination; Gandhar Extension VI PML Pool

10 SB#300 (SBCG) Gas Western Onshore Nomination; Geratpur PML Pool

11 Gedanapalli#3 (GLAC) Oil KG Onshore Nomination; Godavari onland PML Pool

12 KG982NA-M#3 Oil & Gas KG Deep Offshore NELP; NDA of KG-DWN -98/2 Pool

13 Khubal#7 (KHBJ) Gas A&AA NELP; AA-ONN-2001/1 Pool

14 Nandasan-111 (NNBC) Oil Western Onshore Nomination; Nandasan Extn-I PML Pool

The new prospect discover y in NELP Block KGOSN041NANL #1 (Shallow Water) is important because this will help in augmenting hydrocarbon volumes established through four earlier discoveries namely Chandrika South, Alankari, Saveri & NANL-2 in the block. This will add to ONGC''s efforts towards attaining critical hydrocarbon volumes for viability of a possible ''cluster based development'' of these discoveries. Similarly, discovery MBOS51NAA#1 in NELP block NB-OSN-2005/1 is in close vicinity of C-37/ C-39, B-9 areas that will enhance the overall gas potential of the area. Mandapeta South # 1 (MDS-AA) discovery south of main Mandapeta field has indicated for the first time possible production potential of tight reservoirs found in the area through hydro-fracturing. The discovery NW-B173A-8 in South & East Bassein PML area in Mukta formation has huge upsides to the production potential of producing field B-173A.

New pool discoveries GK-28 # 9 and GK-42 # 3 in GK-28 PML block in Kutch Shallow Water has a good potential to add value to GK-28/GK-42 areas which ONGC plans to put on production. Besides, this discovery has potential to add a new basin to the list of producing basins in the country. Similarly, the new oil & gas pool discovery Gandhar # 686 in Gandhar Extension VI PML area has shown first occurrence of oil in sand GS-11 in the South Western part of Gandhar field which will help in opening the sector for further growth of this field.

The discovery SB#300 (SBCG) in Kalol formation South East of main Sobhasan field, in a separate fault block on the plunge of Sobhasan structure is the first gas discovery in KS-IV Sub pay and hence it will lead to adding a new gas play to the area. The discovery of Khubal#7 (KHBJ) in a separate fault block in NELP block AA-ONN-2001/1 in Assam & Arakan basin is likely to add volumes to the already established in-place gas in the block and thereby help our fertiliser business that is planned through gas from Khubal area.

The dominance of oil in Northern Discovery Area (NDA) which has been established through the earlier notified KG98/2NA-A#2 discovery is further confirmed by the new pool discovery KG98/2NA-M#3 this year which has potential to take the in-place oil volumes to more than 100 MMt. Current estimated Oil & Gas (O OEG) volumes in NDA stand at 190 MMToe as on 01-04-2013 and are likely to grow to the order of 290 MMToe with the addition from this M#3 discovery.

Reserve accretion & Reserve Replacement Ratio (RRR)

Continuing exploration in challenging and frontier areas, your company has accreted 255.56 million metric tonnes of oil equivalent (MMToe) of In-place volume of hydrocarbon in the domestic basins (operated by ONGC). As on 31.03.2014, the in-place Reserves of ONGC as a group stands at 2,004.15 MMToe; up 14% from FY''13 figure of 1,759.43 MMToe. The ultimate reserves accretion by ONGC in domestic area during FY''14 has been 84.99 MMToe, the highest in last 23 years. Total reserve accretion in domestic basins including ONGC''s share in PSC JVs stands at 89.76 MMToe. With a Reserve Replacement Ratio (RRR) of 1.87 (with 3P Reserves) for its domestic basins, it was the 9th consecutive year that your Company has maintained an RRR of more than one.

Voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69) have been made by your Company.

Following is the reserve accretion details which your company has been pursuing with great vigour & conviction:

Ultimate Reserve (3P) accretion O OEG (in MMToe)

Year Domestic ONGC''s share in Total ONGC VIDESH''s Total Assets Domestic Jvs Domestic Share in (1) (2) Reserve Foreign Assets (3)=(1) (2) (4) (5)=(3) (4)

2008-09 68.90 2.82 71.72 135.08 206.80

2009-10 82.98 4.39 87.37 0.35 87.72

2010-11 83.56 0.29 83.85 46.23 130.08

2011-12 84.13 1.31 85.44 -0.31 85.13

2012-13 84.84 4.24 89.08 14.16 103.24

2013-14 84.99 4.77 89.76 212.59 302.35

Statement of Reserve Recognition Accounting (RRA)

Reserve Recognition Accounting is a statutory compliance towards recognizing income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization engaged in exploration and production of hydrocarbons with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee of the Company.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information:

a) Proved Oil and Gas reserve quantities

b) Capitalized costs relating to Oil and Gas producing activities

c) Cost incurred for property acquisition, exploration and development activities

d) Results of operations for Oil and Gas producing activities

e) A standardized measure of discounted future net cash flows relating to proved Oil and Gas reserve quantities

Your Company has disclosed information in respect of (a) to (d) above in the Annual Financial Statements.

Your Company has also made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserve at Annexure-''A'' to this report as statement of Reserve Recognition Accounting (RRA).

Unconventional sources of energy

ONGC plans to continue its endeavour for exploration and development of Unconventional & other resources like Shale Gas, CBM, HP/HT, Fractured Basement plays with the following initiatives:

a. Shale Gas and Oil

ONGC has the distinction of establishing the first flow of shale gas in the country at Durgapur. Shale gas exploration and production is one of the key elements of ONGC''s Perspective Plan 2030 wherein an accretion potential of 850 to 1150 MMToe and production potential of 80 to 140 MMToe have been envisaged by the year 2030. ONGC is planning to explore for shale gas in Cambay, Krishna- Godavari, Cauvery and Assam Shelf and basins.

Government of India notified the New Shale Gas Policy for the NOCs on 14.10.2013 and according to it, ONGC and OIL will initiate shale gas and oil exploration activities in their nomination blocks in a phased manner. ONGC has identified 50 nomination blocks, of which 28 blocks are in Cambay basin, 10 in KG basin, 9 in Cauvery basin and 3 in Assam Shelf.

Following the notification of the policy, ONGC has already drilled its first pilot Shale gas well JMSGA(DD-3305 m) in the Cambay basin. Extensive coring (139 m) was carried out in this well and studies on cores and analysis of wire line logs are in progress which will help in assessing the shale gas and oil potential of Cambay Shale, main source rock in the basin. Identification of prospective shale gas blocks in different basins has been completed and ONGC plans to take up shale gas activities aggressively in these basins. Around 20 similar pilot wells are planned to be drilled in Cambay, KG, Cauvery and A&AA basins in 2014-15. Success in these envisaged Shale Gas pilot programme will help in unlocking unconventional shale gas and oil reserves in dif ferent basins.

b. Coal Bed Methane(CBM)

ONGC has taken concrete steps to discover Coal Bed Methane (CBM) in the country and is currently operating in four CBM Blocks i.e., Jharia, Bokaro, North Karanpura and Raniganj. The Development Plans for all the four blocks has been submitted and approved by the Steering Committees. Nearly 400 wells and 2000 hydro-fracturing jobs would be carried out in the coming 4-5 years as per timelines of the CBM Contract. In view of the mammoth and time bound task, ONGC has decided to farm-in experienced partners to execute field operations, process for acquisition of which is in an advanced stage.

ONGC has started selling incidentally produced CBM gas from existing wells at Parbatpur of Jharia Block at an approved price of $5.1 per MMBTU i.e. Rs. 9.75 per SCM approx. The cumulative gas sale as on 31st March 2014 is 11.41 MSCM. The Commercial CBM production in ONGC blocks is yet to start.

c. Underground Coal Gasification(UCG)

ONGC has selected Vastan Mine block in Surat district, Gujarat for UCG Pilot project. All the ground work and inputs for pilot construction have been finalized for implementation. Gazette notification from GoI for UCG block allocation in the form of Notice Inviting Application (NIA) had been issued on 29th July, 2013. According to the NIA the block shall be allocated to state PSU located in Gujarat. GIPCL, Gujarat being partner in ONGC''s UCG venture, submitted a fresh application on 21st August,2013.

The issue of Mining Lease for the block is awaited. The Pilot construction and erection of surface facilities shall be taken up only after the allocation of the Vastan Mine block.

Further, a number of sites have been jointly identified by ONGC & Neyveli Lignite Corporation Limited (NLC) for studying their suitability to UCG. These are Tadkeshwar in Gujarat and Hodu-Sindhari& East Kurla in Rajasthan. One more site was jointly identified by ONGC & GMDC at Surkha in Bhavnagar district, Gujarat. The data of all the fields have been analysed for evaluating the suitability of these sites for UCG. All sites have been found suitable for UCG exploration.

Oil & Gas production

During FY ''14, like earlier years, your company being the largest producer of oil and gas in the country, was able to maintain its relevance by contributing 69 per cent of oil and 62 per cent of natural gas production of the country from its domestic operations.

Oil & Gas production of ONGC Group, including PSC-JVs and from overseas Assets for FY''14 has been 59.21 MMToe (against 58.71 MMToe during FY''13). The upward volume came from our overseas asset at Ajerbaijan and also from resumption of production in Sudan & South Sudan where production was suspended owing to geopolitical situations. However, when compared to 2011-12, the production is slighlty lower owing to unrest in Syria and still inadequate production from Sudan & South Sudan and the natural decline in overseas matured fields in Sakhalin-1, Russia, San Cristobal Project, Venezuela and BC-10, Brazil, besides the natural production decline in domestic mature fields. The fall in production was offset through IOR & EOR ef forts.

Out of the total production of 31.49 MMT of crude oil, 70.6 per cent production came from ONGC operated domestic fields, 17.4 per cent from the overseas assets and balance 12 per cent from domestic joint ventures. As far as natural gas production is concerned, majority of production (84 per cent) came from ONGC operated domestic fields, 10.4 per cent from overseas assets and 5.6 per cent from domestic joint ventures.

Production from overseas assets

ONGC Videsh, has thirteen (13) producing assets in eight countries - Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2), Syria (1), Vietnam (1), , Mayanmar (2), Russia (2) and Azerbaijan (1).

Total production from these overseas assets during FY''14 has been 8.36 MMToe of O OEG (Crude oil: 5.49 MMT & Gas: 2.87BCM).

Ajerbaijan has contributed 12% as compared to around 0.1% last year. Resumption of operations in South Sudan & Sudan has also contributed to this years increased volume contributing 13.2% this year as compared to 8.2% last year. Russia & Vietnam continued to be the biggest contributor to overseas production volume with 29.4% and 23% respectively followed by Venzuela with 10.8%.

NEW PROJECTS

The following new projects are under implementation:

- Integrated Development of Vasihita and S1 Fields -

The project envisages gas production of 15.96 BCM within 9 years from completion with an investment of ?41243 million.

- Development Plan for lower pays in NBP- 14 Block of NBP field - This project envisages an investment of ?4291 million for drilling and completion of 6 development wells.

- Additional development of Vasai East field The Capex of this project is ?24770 million and envisages installation of 2 well platforms (VSEB & VSEC) and drilling of 20 wells with cumulative incremental oil & gas production of 1.83 MMt and 1.971 BCM by 2029-2030.

- Mudline completion - Development of three shallow water wells GS-15-9, GS-15-E1 & GS-48-1 through Sub- Sea mud-line tree in Eastern Offshore. The project envisages gas production of 1.1 MMSCMD, gradually reducing to 0.36 MMSCMD in 10 years with an investment of ?2848 million.

Overall Production and Sales Performance

Presented below are the highlights of production and sales of Crude Oil, Natural Gas and Value Added Products (VAP):

Unit Production Qty Sales Qty Value (Rs.in millions)

FY''14 FY13 FY14 FY13 FY14 FY13

Direct

Crude Oil (MMT) 25.99 26.13 23.61 23.69 525,734 533,268

Natural Gas (BCM) 24.85 25.34 19.63 20.16 183,291 165,400

Ethane/ Propane 000 MT 430 428 428 425 14,837 13,440

LPG 000 MT 1,067 1,006 1,073 1,005 30,145 31,484

Naphtha 000 MT 1,358 1,534 1,379 1,520 75,743 76,804

SKO 000 MT 84 108 85 106 2,779 3,686

Others 2,124 1,589

Sub Total 834,653 825,671 Trading

Motor Spirit 000 KL 0.54 0.56 41 42

HSD 000 KL 0.05 0.02 3 1

Others

Sub Total 44 43

Total 834,697 825,714

1. Financial Results

During the year, your Company has earned a Profit After Tax (PAT) of ? 220,948 million up 5.6% over FY 2012-13 (?209,257 million)

Highlights

Gross Revenue :? 842,028 million

Profit After Tax (PAT) ? 220,948 million

Contribution to Exchequer : ? 405,750 million

Return on Capital Employed : 39.62%

Debt-Equity Ratio : 0.00

Earnings Per Share (Rs.) : 25.83

Book Value Per Share (Rs.) 159

(Rs. in million)

Particulars 2013-14 2012-13

Revenue from operations 842,028 833,090

Other Income 67,132 54,367

Total Revenues 909,160 887,457

Profit Before Interest Depreciation & Tax (PBIDT) 433,582 389,455

Profit Before Tax (PBT) 324,319 305,443

Profit After Tax (PAT) 220,948 209,257

APPROPRIATION

Interim Dividend 79,138 76,999

Proposed Final Dividend 2,139 4,278

Tax on Dividend 13,807 13,012

Transfer to General Reserve 125,864 114,968

TOTAL 220,948 209,257

Previous year figures have been regrouped wherever necessary.

Previous year figures have been regrouped wherever necessary.

The increase in Profit during FY 13 -14 as compared to FY 12-13 is mainly due to lower write off towards dry wells and appreciation in US$ against INR. This is inspite of contribution of record Rs. 563,843 Million by ONGC towards under-recoveries of Oil Marketing companies.

2. Dividend

Your Company paid interim dividend of Rs.9.25 per share (185 per cent) in two phases (Rs.5.00 and Rs.4.25). The Board of Directors has recommended a final dividend of Rs. 0.25 per share (5 per cent) making the aggregate dividend at Rs. 9.50 per share (190 per cent) for FY 13-14 i.e. same as compared to dividend for the year 2012-13. The total dividend will be Rs.81,277 million, besides Rs.13,807 million as tax on dividend amounting to 43.03 per cent of PAT.

3. Management Discussion and Analysis Report

As per the terms of Clause 49(IV)(F) of the Listing Agreement with the Stock Exchanges, the Management Discussion and Analysis Report (MDAR) has been included and forms part of the Annual Report of the Company.

4. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards (AS-1 to AS-29) and Successful Efforts Method of accounting as per the Revised Guidance Note on Accounting for Oil & Gas Producing Activities issued by The Institute of Chartered Accountants of India (ICAI) effective from 01.04.2013 and provisions of the Companies Act, 1956. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared under the Revised Schedule VI format of the Companies Act, 1956. It may be noted that the provisions of Companies Act, 2013 with regard to preparation of Annual Accounts shall become applicable from the financial years commencing on or after 1st April, 2014.

5. Subsidiaries

I ONGC Videsh Limited (ONGC Videsh)

ONGC Videsh, the wholly-owned subsidiary of your Company for E&P activities outside India, has participation in 33 projects in 16 countries e.g. Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam. Out of 33 projects, 13 are producing, 4 are discovered/under development, 14 are exploratory and remaining 2 are pipeline projects.

ONGC Videsh is currently producing about 169 thousand barrels of oil and oil equivalent gas per day and has total oil and gas reserves of about 637 MMToe as on 31st March 2014. It has achieved the highest- ever profit (PAT) of Rs.44,453 Million during FY'' 14, an increase of 13% as compared to the PAT of Rs. 39,291 Million during FY''13. The increase in profit can be attributed mainly to increase in production / sale quantity and appreciation of US$ against the INR. ONGC Videsh''s share in production of oil and oil equivalent gas (O OEG) of ONGC group, together with its wholly-owned subsidiaries, ONGC Nile Ganga B.V., ONGC Amazon Alaknanda Limited, Imperial Energy Limited and Carabobo One AB, was 8.357 MMToe during FY''14 as compared to 7.260 MMToe during FY'' 13. The oil production increased from 4.343 MMT during FY''13 to 5.486 MMT during FY''14 (26.3% higher) primarily due to new production stream from ACG, Azerbaijan; acquisition of additional 12% PI in Block BC-10, Brazil; higher production from Sudan and South Sudan.

Significant Acquisitions, Alliances and Operations highlights of ONGC Videsh during FY''14 are as follows:

i) ONGC Videsh with Oil India Limited (OIL) has acquired 10% (ONGC Videsh - 6% and OIL - 4%) PI in the Rovuma Area 1 Offshore Block in Mozambique (Area 1) at purchase consideration of USD 2511 Million on 7th January, 2014 by acquiring the share of Videocon Mozambique Rovuma 1 Limited.

Your Company has also acquired 10% PI in the same area from Anadarko Moçambique Area 1 Limitada at purchase consideration of USD 2640 Million on 28th February, 2014.

Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin of fshore Mozambique and represents the largest gas discovery in offshore East Africa with estimated recoverable reserves of 50 to 70 trillion cubic feet.

ii) ONGC Videsh, through its subsidiaries, has acquired an additional 12% Participating Interest (PI) in Block BC-10, a deep-water offshore block in Campos Basin, Brazil at purchase consideration of USD 561 million, taking its total PI in the block to 27%. The Company had earlier acquired 15% PI in Block BC-10 in 2006.The transaction for 12% stake in the block was completed in December, 2013.

iii) ONGC Videsh in partnership with OIL on 17th February, 2014, has signed Production Sharing Contract (PSC) for two shallow water exploration blocks SS-09 & SS-04 in the Bay of Bengal of Bangladesh. ONGC Videsh and Oil India Limited (OIL) formed a consortium (50:50) and participated in the Bangladesh Offshore Bidding Round 2012, launched by Bangladesh Government during December 2012 and was officially notified as the winner of the mentioned blocks on August 20th 2013. ONGC Videsh has 45% PI in each of the Blocks with operatorship, 45% PI is held by Oil India Ltd and remaining 10% PI is held by Bangladesh Petroleum and Exploration Company Limited.

iv) On 10th October 2013, the Company was awarded two onshore exploratory blocks namely B2 (Zebyutaung-Nandaw) and EP-3 (Thegon- Shwegu) in the Myanmar Onshore Bidding Round 2013. Block B-2, having an area of 16995 sq. kms is located in Northern Myanmar, bordering state of Manipur in India and Block EP-3 having an area of 1650 sq. kms is located in Central Myanmar. ONGC Videsh was one of the 7 Indian companies which were shortlisted as Pre-qualified bidders by Government of Myanmar for their Onshore 2nd Bid Round -2013 for 18 blocks. v) During FY''14, ONGC Videsh has signed the following MoUs:

a) MoU with Petrovietnam - On November 20, 2013, in furtherance to earlier MoU signed on October 2011 to promote joint cooperation in hydrocarbon sector in Vietnam, India and other countries was signed. Under the MOU, Petrovietnam has offered 5 blocks to ONGC Videsh. ONGC Videsh would assess these blocks and if these are of interest, it would make a proposal to PetroVietnam.

b) MOU with Coordinating Ministry for Strategic Sectors of Ecuador on 9th December 2013 over sharing of information regarding oil and gas projects in Ecuador, which ONGC Videsh would evaluate to identify projects of its interest and could propose participation in such project(s) through specific definitive agreements.

c) MOU with PDVSA - On 9th October 2013 for strategic cooperation and participation in the exploration and production of hydrocarbon resources in the oil-rich Faja area of Venezuela and in other areas as well in joint collaboration thereby enhancing ONGC Videsh''s interest in Venezuela.

vi) ONGC Videsh commenced first commercial production of gas from Block A3 and Block A1 in Offshore Myanmar on 15th July 2013 and 10th January 2014 respectively. The combined production from these blocks is currently 8.7 MMSCMD and is expected to reach a peak level of 14.20 MMSCMD in Q1 of 2015. ONGC Videsh has 17% PI in these blocks.

vii) ONGC Videsh has commissioned the Onshore Pipeline Gas Transportation project in Myanmar in November 2013. The Contractual Transportation Date has been notified as 1st December, 2013. The onshore gas pipeline is currently under operation and is transporting gas to both the Export and Domestic buyers.

viii) In Block BC-10, Brazil, the Phase II of the Project has also come on stream in October 2013 with an expected peak production of about 35,000 barrels of oil equivalent per day (boepd) in 2014. The current oil production from the block has reached 58,000 boepd at JV level. Phase-III of the project has also started with drilling of wells and first - oil is expected by April, 2016 with expected peak production of about 28000 boepd in 2017. The production from all the phases is expected to be about 75,000 boepd in 2017.

ix) After acquisition of 2.72% stake in ACG project in Azerbaijan, additional oil production has commenced from West Chirag field on 28th January, 2014. The current production from the project is 678,000 bopd.

x) The current geo-political situation in Syria including EU sanctions and the resulting restrictions on contractors continues which has adversely affected Syrian operations since December 2011.

xi) The operations in South Sudan projects are temporarily under shutdown after internal conflicts and adverse security situation in the country since 22nd December, 2013. However, a Ceasefire Agreement has been signed on 9th May, 2014 by the warring parties and negotiations are being carried out under the mediation of the African Union and Inter-governmental Authority on Development (IGAD). Operations in South Sudan shall resume once security situation improves.

Direct Subsidiaries and Joint Ventures of ONGC Videsh i. ONGC Nile Ganga B.V. (ONGBV) ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25 per cent Par ticipating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.741 MMT during 2013-14. ONGBV also holds 25 per cent PI in Greater Pioneer Operating Company (GPOC), South Sudan. Due to adverse geo-political conditions, ONGC Videsh could produce only 0.218 MMT oil in GPOC, South Sudan during FY''14.

ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due to geo-political situations in Syria, ONGC Videsh could not produce any oil in AFPC project during FY''14. ONGBV holds 40 per cent PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil production of about 0.854 MMT during FY'' 14. ONGBV holds 27 per cent PI in BC- 10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltda with its share of oil and gas production of about 0.331MMToe during FY'' 14. ONGBV also holds 25% PI in Block BM- SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltda. ONGBV also holds 8.347per cent PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.

ii. ONGC Narmada Limited (ONL)

ONL has been retained for acquisition of future E&P projects in Nigeria.

iii. ONGC Amazon Alaknanda Limited (OAAL)

OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY'' 14, ONGC Videsh''s share of oil and gas production in MECL was about 0.604MMToe.

iv. Imperial Energy Limited (Erstwhile Jarpeno Limited)

Imperial Energy Limited (Name changed from Jarpeno Limited with effect from April 19th 2013), a wholly-owned subsidiary of ONGC Videsh incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia, Russia. During FY'' 14, Imperial Energy''s oil and gas production was about 0.423MMToe.

v. Carabobo One AB

Carabobo One AB, a wholly-owned subsidiary of ONGC Videsh incorporated in Sweden, indirectly holds 11 per cent PI in Carabobo-1 Project, Venezuela. The early production has already started from first well (CGO005) on 27th December 2012 @ 300 bopd. During FY'' 14, Carabobo''s oil and gas production was about 0.022MMToe.

vi. ONGC (BTC) Limited :

ONGC (BTC) Limited holding 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline ("BTC") owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude from the ACG fields from Azerbaijan to the Mediterranean Sea.

vii. ONGC Mittal Energy Limited (OMEL)

ONGC Videsh along with Mittal Investments Sarl (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. ONGC VIDESH and MIS together hold 98 per cent equity shares of OMEL in the ratio of 49.98 per cent (ONGC Videsh) and 48.02 per cent (MIS) with the balance 2 per cent shares held by SBI Capital Markets Ltd. OMEL held 45.5 per cent PI in exploration block OPL 279, Nigeria and holds 64.33 per cent PI in exploration Block OPL 285, Nigeria. OMEL also holds 1.11 per cent of the issued share capital of ONGBV by way of Class-C shares issued by ONGBV exclusively for AFPC Syrian Assets; such investment being financed by Class-C Preference Shares issued by OMEL in the ratio of 51:49 to ONGC Videsh and MIS respectively.

II Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company continues to hold 71.62 per cent equity stake in MRPL, a Schedule ''A'' Mini Ratna, which is a single location 15 MMTPA Refinery on the West coast.

Performance Highlights FY 2013-14

- MRPL achieved the highest-ever thru''put of 14.97 and it produced 14.59 MMT of petroleum products in FY''14, the highest-ever.

- FY''14 saw MRPL registering a handsome profit (PAT) of Rs.6010 Million against a net loss of Rs.7,569.10 million that MRPL witnessed during FY''13 owing to reduced gross margins and foreign exchange fluctuation during FY''13.

- Despite profit, however, Board of Directors of MRPL has not recommended any Dividend payout for the financial year 2013-14 considering the working capital requirement, past losses and project expenditure.

- MRPL exported 6.727 MMT of products against 6.838 MMT in the previous year. The Export turnover rose to Rs.353,920 million in FY''14 with 6.15% higher than previous F Y.

- Crude sourcing (Receipts): 14.971 MMT; Iran (28.91 per cent), Saudi Arabia (22.51 per cent), ADNOC (17.09 per cent), Kuwait (9.77 per cent), Mumbai High (9.27 per cent), Nile Blend (1.06 per cent) & Spot (11.39 per cent).

Marketing & Retail Operations

The Company (MRPL) embarked into bulk sales of HSD after the introduction of dual pricing for HSD. The turnover of Direct Marketing stood at Rs.22, 910 Million in FY-14 as compared to Rs.25,830 Million in FY-13. The Company could establish a good market reach for sale of Petcoke after commissioning of Delayed Coker unit in April 2014. The Company''s Joint Venture (Shell MRPL Aviation Fuel services Limited) for marketing ATF has performed well and has increased its turnover by 34% in FY14 as compared to last year.

Phase III - Brownfield expansion Project & SPM

MRPL''s Phase III up-gradation and expansion project has achieved an overall progress of 99.68% as on 15.5.2014. The Company has already commissioned the SPM facility in August 2013. During the month of April/ May 2014 the Delayed Coker Unit and Coker Hydro Treater Unit and one SRU unit have been commissioned. PFCC and two trains of SRU shall be commissioned shortly. The physical progress of Polypropylene unit is 95.6% and is expected to be commissioned shortly. The total capital expenditure incurred for all these projects so far is Rs.130,050 Million.

6. Exemption in respect of Annual Report of

Subsidiaries and Consolidated Financial Statement

In accordance with Ministry of Corporate Affairs (MCA) circular dated 8th February, 2011 and clarification dated 21st February, 2011, your Board has accorded necessary approval for not attaching the Balance Sheet and Profit & Loss Account of its subsidiaries (i) ONGC Videsh and (ii) Mangalore Refinery and Petrochemicals Ltd. (MRPL). Full Annual Report of ONGC including its subsidiaries will be made available to any shareholder, if he/she desires.

Further, Annual Reports of MRPL and ONGC Videsh are also available on website www.mrpl.co.in and www.ongcvidesh.com respectively.

In accordance with the Accounting Standard (AS)–21 on "Consolidated Financial Statements" read with AS- 23 on "Accounting for Investments in Associates" and AS-27 on "Financial Reporting of Interests in Joint Ventures", audited Consolidated Financial Statements for the year ended 31st March, 2014 of the Company and its subsidiaries form part of the Annual Report.

7. Joint Ventures/ Associates

i. ONGC Petro-additions Limited (OPaL)

ONGC Petro-additions Limited (OPaL), has been promoted by your company as a Joint Venture (JV) Company, with envisaged equity stake of 26% along with GAIL (15.5%) and GSPC (5%). The balance equity of 53.5% is to be tied up with Strategic Partners/ FIs / IPO.

OPAL is a mega downstream petrochemical integrated project at Dahej SEZ for utilizing in-house production of C2-C3 and Naphtha from various units of ONGC.

Recently on August 23rd, 2013, your company signed a Product Sale Agreements with OPaL for supply of feed-stocks, thereby enabling OPal''s lenders to release funds for implementation of the project.

Present status

- Overall Cumulative progress is 89.84 %.

- Total cumulative expenditure as on 31st March 2014 is Rs.181,557 million. Approved project cost is Rs.213,960 million.

- Debt closure has been attained for approved project cost of Rs.213,960 million with the execution of Rupee Term Loan agreement, for Rs. 149,770 million, including ECB of USD 300 million.

- Based on the current project progress, expected completion schedule of the Project is Jan, 2015.

ii. ONGC Tripura Power Company Ltd (OTPC)

Your Company has promoted OTPC with an envisaged stake of 50% along with Govt. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary) (26%); the balance 23.5% is proposed to be tied up through IPO / Strategic / Financial Investor.

OTPC is setting up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power Plant (CCCP) at Palatana, Tripura. The basic objective of the project has been to monetize idle gas assets of ONGC in land- locked Tripura state and to boost exploratory efforts in the region.

Present Status

OTPC''s first unit (Unit-1) was dedicated to the Nation by the Hon''ble President of India on 21st June, 2013. However, commercial operation of its first unit (363.3 MW) effectively got started from 4th January 2014 in presence of representatives of beneficiary states. The second unit is expected to be commissioned in the second quarter of financial year 2014-15.

- The unit has been granted provisional tariff by Central Electricity Regulatory Commission (CERC). The Ministry of Power has allocated more than 86% of power from the project (two units) to the NER beneficiary states while 98 MW is allocated to OTPC for merchant sales. The OTPC has already signed a gas sale and purchase agreement (GSPA) with ONGC for supplying Daily contracted Quantity of 2.65 MMSCMD of gas.

- The 663 KM long 400 KV double circuit transmission network Palatana-Bongaigaon transmission has been commissioned up to Byrnihat by North-East Transmission Company Limited (NETCL), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states. This development is helping in evacuating power from Unit-1 and enables partial evacuation from unit II. For complete evacuation of Unit-II power, the remaining Byrnihat-Bongaigaon section of the line requires to be completed and its completion is expected to coincide with Unit II commissioning, subject to timely resolution of certain forest clearance issues.

- The total expenditure incurred on the project till 31st March, 2014 is Rs.34,560 million against the total estimated cost of Rs.40,470 million.

- State Bank of India is funding the entire debt for the project at a Debt: Equity ratio of 75:25.

iii. ONGC Mangalore Petrochemicals Limited (OMPL)

Your company has promoted OMPL as a value-chain integration project for manufacturing Para-Xylene and Benzene from the Aromatic streams of MRPL with an envisaged equity participation of 46% along with MRPL (3%), with balance 51% to be tied up through IPO / Strategic / Financial Investor Present status:

- Overall Cumulative progress is 98.5% as on 31st March 2014

- Total cumulative expenditure on the project is Rs.51700 million. Approved project cost is Rs.57500 million.

- The commercial operation date (COD) is August 2014.

iv. Dahej SEZ Ltd (DSL)

Your company as Lead Promoter is developing a multi-product SEZ at Dahej in coastal Gujarat to facilitate your company''s endeavours at C2- C3 Extraction and value-chain integration project – OPaL. Your company has 23% equity in the project with GIDC having 26% and balance 51% is proposed to be tied up through IPO / Strategic / Financial Investor.

Present status:

- SEZ is already operational and units in SEZ have clocked export of Rs.14,200 million in FY 2012-13 and Rs.19,740 million in FY 2013-14.

- 92% of the leasable land has already been allotted and the remaining land is expected to be leased in the next two years.

- Expert Appraisal Committee of Ministry of Environment and Forest (MoEF) has recommended CRZ clearance for 123.42 ha of land in Dahej SEZ. Formal approval is awaited.

v. Mangalore Special Economic Zone Limited (MSEZ)

With an envisaged equity stake of 26% along with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%), ONGC is setting up MSEZ to serve as site for development of necessary infrastructure to facilitate and locate ONGC/MRPL''s Aromatic complex being promoted by ONGC.

Present status:

- 65% of the leasable land has already been allotted.

- Pipeline Corridor development - MoEF clearance is awaited for construction works at Reach 2 (~ 1.8 km). Pursuant to presentations to Expert Committee of MoEF and clarifications, recommendations have been submitted to MoEF, Delhi. Final clearance is awaited. However, interim arrangement for laying of OMPL pipelines in this reach has been made, thereby facilitating OMPL to utilize the corridor.

- Land acquisition issues at Reach 3 (~1.5 kms) – Gazette notification has been issued. Price fixation meeting was held on 23rd Oct''13 although resolution would take one more round of discussions. However, due to Lok Sabha elections and the model code of conduct, further discussions could not take place. Interim arrangement for laying of OMPL pipelines in this reach has also been made, thereby facilitating OMPL to utilize the corridor.

- River Water infrastructure: Supply to MRPL and OMPL has commenced. Water Agreement has been initialled with OMPL and is under finalization with MRPL.

vi. ONGC TERI Biotech Limited (OTBL)

ONGC TERI Biotech Limited (OTBL) which was incorporated on 26th March, 2007 is a Joint-venture Company of ONGC in association with The Energy Research Institute (TERI), with shareholding of 49.98% & 48.02%, respectively. Balance 2% is held by FIs. Through the ef forts of joint research of ONGC & TERI over the years, OTBL is offering below mentioned technologies and providing various Biotechnical Solutions to Oil and Gas Industry, both in India and abroad:

I) Oilzapper Technology (Bioremediation)- used to eliminate & tackle Oil Spills, Oily Sludge, and hazardous hydro carbon waste;

ii) Paraffin Degrading Bacteria (PDB)- used to prevent Paraffin Deposition in Oil well Tubing;

iii) Wax Deposition Prevention (WDP)- used to prevent Paraffin Deposition in surface and sub-surface flow lines;

iv) Microbial Enhanced Oil Recovery (MeOR)- used for Enhanced Oil Recovery by mobilizing crude oil trapped in pores of Oil Reservoirs.

During 2013-14 the turnover of OTBL was Rs.154.4 Million with Profit af ter Ta x of Rs.44.8 Million as against turnover of Rs.136.61 Million and Profit after Ta x of Rs.40.05 Million in the previous year.

vii. Petronet MHB Limited (PMHBL)

- PMHBL is a JV company wherein your company has an equity stake of 28.766% along with HPCL (28.7%) and PIL (7.898%) with balance 34.57 per cent of equity being held by leading banks.

- PMHBL owns and operates a multi–product pipeline to transport MRPL''s products to the hinterland of Karnataka.

- In FY''14 PMHBL pipeline has transported a throughput of 3.07 MMT against total throughput of 2.82 MMT last year. As per un-audited results for the year 2013-14, the turnover and PAT of PMHBL are Rs.1295 million and Rs.510 million respectively.

viii. Petronet LNG Limited (PLL)

ONGC has 12.5 per cent equity stake in PLL, identical to stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG terminal of PLL having a capacity of 10 MMTPA is currently meeting nearly 20 per cent of the total gas demand of the country. A new LNG terminal of capacity 5 MMTPA has been set up at Kochi and was dedicated to the Nation by Hon''ble Prime Minister of India on 4th January, 2014. The Company is also planning to set up an LNG terminal of capacity 5 MMTPA at Gangavaram, Andhra Pradesh. The turnover of PLL during 2013-14 is Rs.377,476 million (previous year Rs.314,674 million) and net profit is Rs.7,119 million (previous year Rs.11,493 million).

ix. Pawan Hans Limited (PHL)

ONGC has 49 per cent equity stake in PHL (previously known as Pawan Hans Helicopters Limited). Balance 51 per cent equity is held by the Government of India. PHL is one of Asia''s largest helicopter operators having a well- balanced operational fleet of 40 helicopters. It provides helicopter support for ONGC''s offshore operations. PHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS- 4 as per the new contract with ONGC. The accounts of PHL for 2013-14 are under finalisation.

8. Other New Projects/ Business initiatives

a. C2-C3-C4 Extraction Plant

Your company has set up a C2-C3-C4 extraction plant at Dahej with LNG from Petronet LNG Limited (PLL) as the feed stock. Commissioning of the Plant is expected to commence by July 2014. Ministry of Finance, Govt of India, vide its notification dated 17th Feb 2014 has resolved Taxation issues. Ministry of Petroleum & Natural Gas has allocated domestic gas for commissioning of the plant on 11th April 2014.

b. Urea Fertilizer Business

ONGC signed a Memorandum of Understanding (MoU) with M/s Chambal Fertilizers and Chemicals Ltd. (CFCL) and the Government of Tripura for setting up a 1.3 MMTPA capacity urea fertilizer plant in Tripura. MoU was signed on April 9th, 2013. Feedstock for the proposed plant (Natural gas) will be supplied from Khubal field in AA-ONN-2001/1 block where substantial gas reserves have been established. Gas requirement for the plant is estimated to be 2.4 mmscmd. The project cost is executives to share documents from their desktops while participating in the multiparty video conferencing. Executives on the move can also participate in multiparty video conferencing through their smart phone device.

- Lotus Connections: To create an environment that facilitates collaboration and innovation, ONGC Blog site based on Lotus Connections has been launched where users can share information online using technologies like blogs, wikis, and activity streams. Employees have started using the platform to share knowledge & opinion.

- Cyber security Crisis management team – To strengthen information security management with focus on cyber security, proposal for Cyber Security Crisis Management team has been initiated.

- Project IT- Under "IT Skill & Proficiency psruk%

Development Programme through Project IT- " psruk continued for the year 2013-14 also.

- HIS (Healthcare Information System): Standardized version of HIS - which was developed to bring in uniformity in working of ONGC health-centers and Hospitals across the organization, has been rolled- out across 20 work-centers.

- IT Service Management (ITSM): To improve performance of IT service management across the enterprise and for better alignment of IT services & business strategy, all IT helpdesk sites have been taken up for ISO 20000 Certification. Six sites at Delhi & Mumbai, which were already certified for ISO 20000, the certification has been upgraded to the latest version.

- Broadband Wireless Access for remotes: To improve IT applications performance & voice connectivity at remote installations, the contract for Point-to-Multipoint "Broadband Wireless Access (BWA) Radio System" for remote sites at North East & Southern Assets of ONGC was awarded on turnkey basis. The project is under execution.

- Satcom Upgradation: For voice & data communication connectivity, remote installations at offshore are primarily dependent on Satcom (Satellite communications). This also provides primary connectivity to many onshore installations and secondary connectivity to other installations at onshore. Satcom infrastructure equipment has become old and lived its useful life. The project for Upgradation of Satcom Infrastructure has been taken up.

- Microwave backbone: Work for setting up onshore to offshore high capacity microwave backbone communication link between Uran-Neelam-B193- BPA Offshore Complex, is awarded and shall be in service by August 2014. This is the first high capacity microwave communication link from base to offshore installations

11. Health, Safet y and Envir onment(HSE) accreditations

Safety, Occupational health and protection of environment in and around its working areas are prime concerns of ONGC. ONGC has implemented globally recognized QHSE Management System conforming to requirements of QHSE Certifications ISO 9001, ISO 14001 and ISO 18001 (OHSAS) at ONGC facilities and certified by reputed certification agencies at all its operational units. As on date, 412 Nos of working units have third party certified integrated QHSE Management System. ONGC follows the internationally accepted practices with regard to incident reporting, investigation and monitoring of recommendations.

A few highlights of HSE during 2013-14 are:

- Regular QHSE internal audits

- Fire safety measures including regular fire and earthquake mock drills,

- Training on HSE related topics,

- Environmental analysis

- PME of employees and Health Awareness programs

- Water and electricity conservation, Noise and pollution reduction measures,

- Material Safety Data Sheets(MSDS),

- Personal protective Equipment''s(PPE),

- Solid waste management and Developing E- waste disposal procedure,

- Jatropha garden and identification and implementation of Environment Management Programmes (EMP) and Occupation Health & Safety(OHS) programs as per need of the unit,

- Energy conservation awareness through display and communication,

- Accident, near miss and Governance, Risk & Compliance (GRC) reporting.

ONGC is now an Accredited Environment Impact Assessment (EIA) Consultant organization by Ministry of Environment & Forest (MoEF) in Oil and Gas Exploration, Development and Production in Offshore/Onshore areas and Petroleum refining industry.

ONGC has undertaken Ringal plantation (Hill bamboo) in Joshimath and Kedarnath forest areas of Upper Himalayas to strengthen fragile Himalayan eco-system. Plantation of 7.0 Lakh ringal in Upper Himalayas has been completed in an area of 280 Hectares. The Next Phase of ringal plantation is under progress for planting 3.75 Lakh plants in 150 Hectares.

A project on mangrove plantation along the shores of Dhadar River on West Coast has been taken up by ONGC to protect erosion of the shoreline. Phase 1 of the project, more than 17 lakh mangroves have been planted in the soil erosion-prone area along the coast of the Dhadar River at Ankleshwar.

With a view to seek environmental friendly options for the disposal and treatment of accidental oil spillages and the tank bottom sludge generated during the routine operations, ONGC explored the biotechnological option i.e. bioremediation wherein indigenous micro-organisms are isolated and enriched and harnessed on mass scale for application in the field. In the year 2013-14, 25000 MT of oily waste was treated through this technique in ONGC.

12. Sustainability Development

ONGC, one of the premier energy majors of the world and the highest profit earning PSU of India, realises its responsibilities in ensuring sustained development through protection of the ecological system. It therefore strives to position itself as a leading organisation in sustainable management and is aiming to achieve sustainable development through a holistic approach to carbon management. We believe that focused carbon management efforts are an ideal route to cover the elements of our business specific sustainable development issues across the environmental dimension. A critical area of environmental sustainability is mitigation of global greenhouse gas from operations. It is an organizational objective for us to progressively reduce our carbon footprint, by working towards reduction in both direct and indirect energy consumption.

The Company proposes to make a comprehensive, organization-wide GHG inventory that covers both direct and indirect energy over the next two to three years. This would provide the overall carbon footprint of the organization and help identify mitigation opportunities. A pilot exercise to assess GHG footprint of our representative operating units has already been completed. This pilot is now being scaled up into a pan ONGC GHG accounting exercise to assess our organisational carbon footprint and importantly to undertake a rigorous study for identification of all feasible GHG mitigation opportunities.

The following efforts undertaken by ONGC illustrate its commitment to sustainable development:

a. Sustainable Water Management (SWM) Water Mapping:

Water mapping study was completed for Ankleshwar and Rajamundry Assets and Hazira Plants. Based on the mapping, following projects have been identified for consideration under SWM umbrella:

Reuse and Recycle:

The concept was implemented as a pilot project, an STP of 50 KLD capacity was installed in the CISF Colony at Mehsana. The Project was executed in February 2014.

In association with Mehsana Asset under SWM program, the following gains have accrued:

- Mud Recycled upto 2013-14 =30128 M3

- Fresh Water Saved by Mud Recycling=22596 M3 upto 2013-14,

- Fresh Water Saved by Use of Treated Effulent=212059 M3

- Total Fresh Water Saved=234655 M3 (Upto 2013- 14) starting from 2009-10.

Desalination: A 20 MLD Desalination plant has been proposed for Uran Plant.

Rain water Harvesting

Rain water harvesting projects at various assets, Basins and plants are in various stages of implementation. This year harvesting has been conceived at Tripura and Ahmedabad Asset which are being implemented. Besides, harvesting at Rajahmundry Asset has also been conceptualized which will be implemented next year. Rain water harvesting at Vadodara has already started and is recharging ground water. More wells are being conceptualized to expand the programme.

b. Carbon Dioxide mitigation and low carbon initiatives

ONGC has also collaborated with Cleen, Finland in the area of carbon capture and joined its program.

c. Clean Development Mechanism (CDM)

ONGC commenced its CDM journey in 2006. Till date, ONGC has registered 11 CDM projects with UNFCCC. About 3 new CDM projects have been registered and other 3 registered projects have been successfully verified for issuance of 182529 CERs (Carbon credits). These CDM projects are listed below:

Registration of new CDM projects

1. Gas Flaring Reduction at Neelam&Heera Asset

2. Natural gas based combined cycle power plant in Tripura

3. Green Building project at Kolkata

Issuance of Registered CDM projects

1. Waste heat recovery from Process Gas Compressors Mumbai high south (offshore platform)

2. 51 MW wind power project of ONGC at Surajbari

3. Amine Circulation Pumps Energy Efficiency at Hazira Plant, ONGC

d. Carbon Foot Print

Comprehensive companywide GHG accounting has been completed. With this exercise, potential area of carbon management has been identified to reduce carbon footprints of ONGC.

e. 3G Bio-refinery

ONGC is planning to setup a 3G bio-refinery to meet the government mandate of E95 (blending of 5% ethanol to gasoline).

f. Solar power CSP-ST technology

CM&SG is in talk with Rippaso Energy for establishing a 3MW pilot solar power project at Gamnewala, Jaisalmer.

g. Carbon neutral PETROTECH 2014:

PETROTECH 2014, a biennial international event has been declared carbon neutral. Total 3000 VERs were exchanged to make the event carbon neutral. This is second event of its kind that was made carbon neutral by CM&SG.

h. Global Methane Initiative (GMI)

Fugitive emission Identification & Quantification (IQ) jobs have been completed as per PC targets. Ahmedabad Asset and BPA& BPB offshore installations were mapped for fugitive emissions. The reports have been submitted to respective heads to take corrective actions.

ONGC has provided IQ services to GAIL and Gail Vijapur plant was mapped for fugitive emission and thereby earning revenue for the company.

13. Business Responsibility Report – 2013-14

Securities & Exchange Board of India has introduced Clause 55 to the Listing Agreement with the Stock Exchanges, which states that Listed entities shall submit, as part of their Annual Report, Business Responsibility Report, describing the initiatives taken by them from an environmental, social and governance perspective. Accordingly, the second Business Responsibility Report – 2013-14 has been drawn up and forms part of the Annual Report for 2013-14.

14. Internal Control System

Your Company has a well-established and efficient internal control system and procedure. The Company has a well-defined delegation of financial powers to its various executives through the Book of Delegated Powers (BDP). The Integrated BDP is updated from time-to-time in line with the needs of the organisation as well as to bring further delegation. The Company has in-house Internal Audit Depar tment commensurate with its size of operations. Audit observations are periodically reviewed by the Audit, Ethics & Financial Management Committee of the Board and necessary directions are issued whenever required.

15. R&D EFFORTS THROUGH ONGC ENERGY CENTRE TRUST (OECT)

Your company has taken steps to evaluate various forms of energy to fulfil the country''s growing energy needs. Towards this end, your company has established an ONGC Energy Centre Trust (OECT), which is mandated to undertake or assist in programs / projects of fundamental and applied research for improving and developing commercially viable energy mediums and sources beyond hydrocarbons, especially in clean and/or renewable energy options. ONGC Energy Centre (OEC) has been set-up under the aegis of the OEC Trust to work on various clean energy options.

Your company through ONGC Energy Centre has been implementing several Research Projects on new and alternative sources of energy. These Projects are in advanced stages of implementation, in collaboration with various national and international academic, research and industrial organizations. The projects where your company is currently engaged in are:

a) Hydrogen Generation through Thermo-chemical Processes

b) Exploration for Uranium

c) Bioconversion of lignite to Methane

d) Bioconversion of Oil to Methane

e) Kinetic Hydro Power

f) Geothermal Energy

g) Solar Thermal Project

These apart, during 2013-14, ONGC Energy Centre has also evaluated many new options to expand the research and technology development activities and also to focus on optimum utilization of resources available with ONGC. These efforts have been described in detail in the Annexure C on Energy Conservation.

16. Human Resources

ONGC cares and values its human resource which is the bedrock of the ONGC''s success story. To keep the employees'' morale high, your Company extends several welfare benefits to them and their families by way of comprehensive medical care, education, housing and social security. During the year 2013-14, your Company implemented 30 Policy Revisions for further welfare of its employees.

17. Human Resource Development

33,988 ONGCians (as on 31st March, 2014) dedicated themselves and contributed their efforts towards the excellent performance of your company. The workforce intake strategy pursued by your Company caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, fast changing level of technology, physically challenging work environment, fluctuating product prices and growing competition. Your Company has drawn up a scientific manpower induction plan aligned to the business plans as well as factoring the manpower profile of the Company. During the year, HR ensured that adequate numbers with requisite skills-sets were inducted to meet the requirements of the Company as well as replenish the manpower loss on account of superannuation.

Your company believes that continuous development of its human resource fosters engagement and drives competitive advantage. One such initiative towards that end was the innovatively designed and highly popular ''Business Games'', an organization-wide contest that puts to test and further hones the managerial and business acumen of the executives. During the year 2013-14, a total of 167 teams and 668 executives participated in the event.

Fun Team Games (FTGs) were organized for E0 and staff level employees to inculcate MDT (Multi- disciplinary Team) concept and a spirit of camaraderie and belongingness to the organization, which was very well received by the participants. During the year 72 teams and 188 employees participated in FTGs. Your Company also conducted the Assessment Development Centre (ADC) for 294 E-6 (DGM) level executives and provided them developmental inputs. Your Company has partnered with global HR consulting firms to create a pool of accredited mentors in the organization. These mentors will support organization''s effort to hone young minds to successfully respond to the emerging business needs of your Company. As part of this Initiative, in the year 2013-14, 865 mentors were trained and 1376 Mentees were mentored and developed.

Training

Skill up-gradation is a vital component for driving excellence through Human Resource. ONGC has branded the spectrum of its training activities as ''EXPONENT'', a comprehensive programme which is nurturing the energy leaders of tomorrow. The growth of an ONGCian to an Exponent of energy business is facilitated by the ONGC Academy, Regional Training Institutes (RTIs), other in-house Institutes in association with globally recognized trainers. Training Institutes of ONGC organize training in all dimensions - Technical as well as non-technical and Managerial that is relevant to Petroleum Industry.

During the year, ONGC training Institutes have organized various training Programmes for skill development and enhancing the competency level of employees for self-development and enhanced output. A total 15898 executives and 4564 non- executives were imparted appropriate training, spanning 213304 training man-days, during 2013-14, which includes five batches of 746 Graduate Trainees, who were imparted induction training. In order to keep the executives abreast with the latest advancements in cutting-edge concepts and technologies in oil and gas exploration and production, 80 programmes were organized during 2013-14, including foreign faculty programmes. Around 296 senior level executives were exposed to advanced programmes on Management with overseas learning component through tie-ups with leading B-schools of the country.

As a Global player, it is imperative to benchmark our strengths with the world''s best. To achieve this we organize International Certification Programs benchmarked to global standards viz. Offshore Installation Manager (OIMs) Certification through OPITO, Project Management Professionals (PMP) Certification from PMI, USA, CIPM from PMA and IPMA from Switzerland. During the year 2013-14, Academy has organized 14 OIMs Programmes in which 62 OIMs participated, 450 executives attended CIPM Programmes, 120 executives attended PMP of PMI, USA and 50 executives attended IPMA level-D.

18. EMPLOYEE WELFARE

Your Company continues to extend welfare benefits to the employees and their dependants by way of comprehensive medical care, education, housing, and social security. Your Company continues to align company policies with changing economy and business environment. Some of the key facets of ONGC''s employee welfare model are as below:

(i) Employee Welfare Trusts

Your Company has established the following major Trusts for welfare of employees:

- Employees Contributory Provident Fund (ECPF) Trust manages Provident Fund accounts of employees of your Company.

- The Post Retirement Benefit Scheme(PRBS) Trust: The scheme underwent a major transformation from defined benefit to defined contribution during the past year. In the converted Defined Contribution Scheme, the corpus in the individual employee account shall include employer/ employee contributions and interest thereon. The benefits under the Scheme are dependent on corpus in the individual employee account and accordingly, would be market determined which depends on interest rate, annuity price.

- The Composite Social Security Scheme(CSSS): It provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service.

- Gratuity Fund Trust: This has been created to take care of payment of gratuity as per the provisions of the Gratuity Act.

- Sahayog Trust: Your Company''s ''Sahayog Yojana'' instituted under this Trust provides ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the welfare of the secondary workforce and their kin, who do not have adequate means of support. Under the scheme, an amount of ? 20.6 million was disbursed by the Trust during the year.

- Extension of Benefits under the Agrani Samman Scheme to retired employees: The Scheme aims to provide succour to the ex-employees who separated from the service of ONGC on account of premature retirement due to disability or medical deficiency suffered while on duty.

- Extension of Benefits under the Asha Kiran Scheme to retired employees:-

During the year, your Company launched Asha Kiran Scheme to meet the emergency needs of the ex- employees retired prior to 01.01.2007, who are passing through distressful situation. The scheme was launched as per DPE guidelines by creating a corpus of 1.5% of PBT. During the year, under this scheme financial assistance of Rs 1352 million was provided to 12964 ex-employees.

(ii) Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15.4 % percent and 9.1% percent respectively as on 31st March, 2014.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their upliftment in and around its operational areas:-

- Annual Component Plan

Under Annual Component Plan for SC/ST, each year an allocation of Rs.200 million is made. Out of this, Rs.60 million is distributed amongst all the Work centres of ONGC for taking up activities for welfare of SC/ST Communities in and around the areas of our operations. In addition, Rs.140 million is managed centrally, and is earmarked for Special projects/proposals/schemes for the welfare of areas/persons belonging to SC/ST communities The amount under component plan is utilized for taking up various welfare measures for the welfare and uplif tment of the needy people of SC/ST Communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical and Health Care.

- Scholarship to SC/ST meritorious students for pursuing higher professional courses at different Institutes and Universities in the country.

Your Company has recently enhanced scholarships for meritorious SC & ST students from 100 to 500 for pursuing higher professional courses at different Institutes and Universities across the country in Graduate, Engineering, MBBS, PG courses of Geo- Sciences and MBA. The major feature of the scheme is that the scholarships have been divided equally for both male and female students and the allotted amount of scholarship per student is Rs.4,000/- per month subject to the conditions of the scheme. The annual budget for the scheme, considering its total implementation, is Rs.76 million per annum.

19. INDUSTRIAL RELATIONS

During the year your Company maintained harmonious Industrial Relations. Mandays loss due to internal industrial action was reported as ''NIL'' for the year 2013-14.

Your Company has adopted pre-emptive and responsive IR policies that resulted in signing of Long Term settlements covering the Post Retirement Benefit Scheme, under the Defined Contribution methodology and adoption of Group Leave Encashment Scheme of the LIC.

Implementation of the ''Fair Wage Policy'' initiated in Aug 2012, has been steadily reported from all work- centers across the country. More than 2500 contract labourers have been covered under the Fair Wage Policy, while more are due to be covered shortly. The policy enjoins the Contractors to pay 35% higher wages as compared to minimum wage. This will also have a salutary effect on all statutory liabilities towards various social security schemes. The policy also provides that the contractors will obtain Group Gratuity cover and Group Insurance cover from LIC for the labour deployed in ONGC operations.

20. Women Empowerment

Women employees constituted over 6 percent of your Company''s workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its lady employees for participating in programmes organized by reputed agencies.

21. GRIEVANCE MANAGEMENT SYSTEM (GMS) :

Your Company provides an easily accessible mechanism to the employees for redressal of their grievances, either through an informal channel (open hearing day) or through a formal channel.

Public Grievance Management System

All Key Executives of your Company have designated a publicized time slot thrice in a week to meet public representatives in order to speedily redress their grievances.

22. IMPLEMENTATION UNDER THE RIGHT TO INFORMATION ACT

An elaborate mechanism has been set up throughout the organization to deal with the requests received under RTI Act, 2005. Central Public Information Officers (CPIO) have been appointed at every work centre of the Company to redress the issues under RTI Act. 126 applications received in March, 2013 were carried forwarded to the year 2013-14. 1743 applications were received during the year; making a total of 1869 applications. In addition, 50 first appeals were carried forward and 361 were received during the year. All the aforesaid 411 first appeals were disposed off by the appellate authority of ONGC and orders passed by the authority were complied within a stipulated time frame.

23. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

Your Company makes concerted efforts to spread and promote the Official Language. Some of the important steps taken in this regard during the year were:

- Company has introduced Unicode Hindi software in all our of fices.

- Hindi workshops are conducted at regular intervals

- Hindi seminars and ''Kavi Gosthies'' were organized at Dehradun and Delhi.

- ONGC actively contributed in publishing bilingual Petroleum Terminology Directory, initiated by MO&PNG.

- Hindi Teaching Scheme of Govt. of India is effectively implemented at all regional work centres.

24. IMPROVEMENT IN LIVING AND WORKING CONDITIONS

As a testimony to its commitment for a cleaner tomorrow, your Company has undertaken the ''Green Building'' initiative for its upcoming offices at Chennai, Dehradun, Delhi, Hyderabad, Kolkata and Mumbai.

Work-Life Balance

Your Company continued in its endeavours to ensure work-life balance of its employees. The townships at many work-centres were provided facilities like gymnasiums and music rooms. Outbound programmes with families were also organized at various work-centres. Plays on the importance of ''Work-Life Balance'' were staged to create awareness amongst the employees. In addition, cultural programmes involving employees and their families were also conducted. Mahila Samitis and Resident Welfare Associations (RWAs) were involved in the organization of these cultural programs. Your

Company has an adventure wing named ONGC

Himalayan Association that organizes adventure programmes like mountaineering, trekking, white water rafting, snow skiing, desert Safari and Aero sports, which contributes toward morale, engagement, team spirit, camaraderie, stress management and spirit to explore the unknown among the employees.

25. SPORTS

ONGC continued its support for development of sports in the country in the form of job offers & scholarships to deser ving spor tspersons. Sponsorships to various sports associations / federations / sports bodies to organise sports events as well as develop infra-structure were also extended.

The welfare measures for the sportspersons which includes sponsored trips for training / coaching stints & tournament participation both within India & abroad, kits & liveries and playing equipment as per norms have been provided in 23 game disciplines. There are 177 players on the rolls and 167 players on scholarship benefitting from the welfare measures of ONGC. The support has aided many sportspersons to deliver elite performances and bring laurels for the Nation and the Company. Sports achievements during the year are detailed in Annexure-B. Such elite performances have been rewarded with cash incentives as per Policy.

Head Sports of your company has taken charge as Secretary, Petroleum Sports Promotion Board (PSPB), which is recognition of your company''s immense contribution towards promotion of sport in the country.

26. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your company is fully engaged in ensuring equitable and sustainable growth of society in and around the area of its operations besides complying with government directives to discharge its social responsibility as a leading Indian corporate. CSR activities are essentially guided by project based approach in line with the guidelines issued by the Department of Public Enterprises (DPE) and Ministry of Corporate Affairs (MCA) of the Government of India. Seeking to herald an inclusive business paradigm, ONGC has CSR interventions that are based on social, environmental, and economic considerations and are well-integrated into the decision-making structures and processes of the organization. In the last 7 years, your company has contributed Rs.13,270 Million towards its well-structured and well-focussed CSR activities.

Out of the CSR Budget of Rs.4185 million, ONGC spent an amount of Rs.3413 million in FY 2013-14. This translates to overall utilization of 86 % of the CSR Budget.

Reason for non-utilization of full CSR budget:

One of the major CSR & Sustainability Development projects undertaken during the year was setting up of 102 MW Wind Power Plant in Jaisalmer District (a back ward district of Rajasthan). The scheduled work on this project during the period 2013-14 was delayed because of the issues related to land acquisition at the site. As a result, expenditure towards activities completed in April''14, which were originally planned for 2013-14 amounting to Rs.1247 million was released in May, 2014. Had the activities been completed as per schedule, ONGC would have exceeded the target amount

CSR efforts are primarily focused on protection of environment; providing infrastructure support in our operational areas, water management, women empowerment, initiatives for physically and mentally challenged people, protection and preservation of our heritage, arts and culture, promotion of sports, entrepreneurship building and sponsorship of seminars, conferences and workshops.

During 2013-14, some of the landmark CSR initiatives undertaken by your Company include:

(a) Healthcare:

(i) Assam Medical College, Dibrugarh:

Support of Rs.70 million has been provided to establish Catheterization Laboratory and facilities for open Heart Surgery in Assam Medical College, Dibrugarh for providing quality health services.

(ii) Community Hospital in Lakhimpur-Kheri, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of Rs.45 million contribution by ONGC and Opex borne by the Operating Partner. This 26 bedded Community Hospital would cater to Primary and Secondary Health Service Requirements from BPL, Economically Backward Class families. Healthcare services are being provided at 50% less cost than the existing CGHS rates.

(iii) King George Hospital, Vizag:

The CSR Initiative involving financial support of Rs.150 million from ONGC aims to construct new 2 9 storied building, medical infrastructure and equipment to enable the Hospital to deliver quality health services to poor patients and also strengthen the present Oncology Department to make cancer treatment a reality.

(iv) District Government Hospital, Chikkaballapur, Karnataka:

A support of Rs. 18 million by ONGC has been provided for upgradation of facilities in the Hospital to improve the general healthcare services at the government Hospital which is the primary source of healthcare for people belonging to the most economically deprived sections of the society.

(v) Government General Hospital (GGH), Kakinada:

ONGC has given financial assistance of Rs. 19 million to construct a separate building for blood bank and to equip the hospital with additional equipment for blood bank, general surgery and general medicine departments. This will immensely benefit people of East Godavari District where ONGC has a substantial operational presence.

(vi) ONGC Mission Ujala:

The project envisages eye screening of 50,000 children in Government Schools in NCR under National Blindness Control Programme of Govt. of India in collaboration with reputed NGO PRAANI. Provisions of spectacles to 3,000 children detected with refractive errors along with medicines were provided under this project in FY 2013-14.

(b) Education & Vocational courses:

i) Shirdi Sai Baba School in Mahoba, UP:

ONGC has joined hands with Shirdi Sai Baba Temple Society for construction and setting up of school for providing absolutely free education with food, clothing, study material and healthcare to under- privileged children in the backward region of Mahoba District under CSR initiative. Out of total estimated cost of Rs. 21 million, a part funding of Rs. 9.5 million has been extended by ONGC.

ii) ONGC- The Akshaya Patra Foundation:

A centralized fully automated mechanized kitchen with a capacity to provide mid-day meals to two lakh school going children (enrolled in Govt. schools) per day in the District of Surat is being set up. Presently 75,000 students are being fed from an interim kitchen.

iii) English medium residential school in Patna, Bihar:

ONGC in association with Soshit Seva Sangh has undertaken a CSR initiative for supporting construction of free English medium residential school in Patna, Bihar for the poor Mushahar community which is one of the most deprived communities with estimated population of approx. 4 million. Out of total estimated cost of Rs. 120 million, part funding of Rs. 5 million has been extended by ONGC. With wider objective of resolving interlinked problems of poverty, unemployment, social injustice, crime and naxalism by means of providing inclusive and affordable education; the project is one of the key initiatives of ONGC in the education sector.

iv) Community School at Sitapur, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of Rs. 27 million contribution by ONGC and Opex borne by the Operating Partner- Shanti Devi Memorial Charitable Trust.

(c) Projects for Physically and Mentally challenged

i) Aids & Appliances to the physically challenged:

This flagship Project was undertaken with financial implication of Rs.250 million which covered 45,000 beneficiaries from 39 ONGC operational area Districts and 61 Backward Districts in Phase-1 in collaboration with Artificial Limbs Manufacturing Corporation of India (ALIMCO) to cater to the needs of Orthopedic, hearing and visually challenged people by providing suitable Aids and Appliances.

ii) ONGC Centre for vocational rehabilitation for the differently abled:

A financial support of Rs.13 million has been provided to Tamana School of Hope , Vasant Vihar , New Delhi for setting up of Autism Centre and provide vocational training for the mentally challenged young adults and children working for their economic rehabilitation by teaching relevant vocational skills to them.

(d) Self help and livelihood generation schemes:

i) Mokshagundam Visvesvaraya Centre for training

Master Trainers in Skill Development (MVCTMTSD):

Society for Bharat Ratna Sir M Visvesvaraya National Training Facility for Skills for All (BMV NTFSA) in association with ONGC and other partnering agencies such as Government of Karnataka, Government of India, GAIL, JSW, BEML, Volvo, BOSCH, L&T, Nationalised Banks has undertaken to set up Mokshagundam Visvesvaraya Centre for training Master Trainers in Skill Development (MVCTMTSD). The main objective of the programme is to create Master Trainers in India and to scale-up the skill of the technician workforce in the country. Nearly 27,000 Master Trainers are expected to be trained in the next 10 years.

ii) Apparel training programme in Chhindwara ( MP):

This project in association with Apparel Training & Design Centre (ATDC), Gurgaon, aims to train 180 boys and girls of poor families located in tribal areas of Chhindwara district, M.P, to conduct Six Diploma/ Certified training courses, which shall be sponsored by ONGC at a cost of Rs.5 million. The project guarantees at least 70% placements.

iii) Training on agricultural sector and animal husbandry:

Under this project started in October 2013 in association with Shrimad Dayanand Vedarsh Mahavidyalaya Trust, New Delhi, one tractor with accessories along with hybrid/ disease resistant seeds, different manures and fertilizers was procured with the grant provided by ONGC. Presently the students of Gurukul are undergoing training as well as education in modern practices of agriculture and animal husbandry at the Gurukul.

iv) Auto Loans in Chikkaballapur, Karnataka:

The project envisages distribution of auto loans to 200 poor and needy beneficiaries; 100 each from Chikkaballapur and Bangalore (Rural) districts of Karnataka. The loan is distributed through Canara Bank. ONGC has provided financial assistance of Rs. 6 million towards margin money @15% for these loans. The project would be of immense help for the poor and needy beneficiaries to become self employed and earn livelihood for their families.

v) Udaan:

This is a special Initiative taken up by the Ministry of Home Affairs, Govt. of India for the educated youth of Jammu & Kashmir in association with National Skill Development Corporation (NSDC). The project aims to train Graduates/Post Graduates from J&K to improve their technical knowledge and soft skills and enhance their scope for employability. ONGC has extended support of Rs. 91 million towards the project.

(e) Development of Backward Districts:

The sustainable development project is being implemented in Jaisalmer, a backward district in Rajasthan. Project involves setting up of 49 Wind Turbine Generators each of capacity of 2.1 MW with total capacity of 102.9 MW in association with M/S Suzlon Energy Ltd. ONGC contribution towards the project is Rs. 5620 million. 22 nos. of WTG have been installed so far.

(f) Other CSR Initiatives:

i) Hortoki Water Supply Scheme: The project aims to create a sustainable source of safe drinking water to the people of Hortoki Village, Kolasib District, Mizoram. It will supply more than 40 lpcd of water till 2043. ONGC has extended support of Rs. 9 million for the project.

ii) Rajeev Gandhi International Sports Complex, Dehradun: ONGC in association with Govt. of Uttarakhand is working towards building a Cricket stadium-cum-sports complex with a capacity of 30,000 people extendable to additional seats in future, car parking, a sports academy, a club house or Gymnasium, restaurant and other auxiliary facilities. ONGC has extended financial support of Rs. 500 million towards the project. The project is expected to be completed in two years.

iii) Dashrath Stadium at Agartala: The project aims to create an Indoor sports complex in association with DDO Directorate of Youth Affairs. ONGC has extended support of Rs. 243 million for the project.

iv) IIIT, Agartala: ONGC has extended support of Rs. 30 million for setting up a new IIIT in Agartala.

v) Chief Minister''s Relief Fund: Uttarakhand: ONGC has extended support of Rs. 20 million towards rehabilitation of flood af fected regions in Uttarakhand.

In addition to above new CSR initiatives undertaken in 2013-14, ONGC has continued to support the major CSR interventions initiated in previous years. Some of the continued CSR initiatives are (i) Varisthajana Swasthya Sewa Abhiyan – provision of health care support to elderly through Mobile Medicare Units. (ii) ONGC-GICEIT Computer Centre- Employment related computer training to under-privileged youth (iii) ONGC-Eastern Swamp Deer Conservation Project in Kaziranga National Park (iv) Harit Moksha – Green cremation system to reduce wood consumption during traditional cremations.

As a testimony to our CSR efforts, your company has won many laurels such as:

1. Golden Peacock Award 2013 for CSR during 8th International Conference on Corporate Social Responsibility-2014

2. ''Global CSR Excellence and Leadership Awards'' for best CSR Practices in areas of health

3. P L Roy CSR Award on ''International Day of Older Persons'' for support to the elderly through its CSR initiative ''Varishthajana Swasthya Sewa Abhiyan''

4. SCOPE Meritorious Award for CSR & Responsiveness for the year 2011-12 on the occasion of Public Sector Day

27. ACCOLADES

Consistent with the trend in preceding years, your Company, its various operating units and its senior management have been recipients of various awards and recognitions. Details of such accolades are placed at Annexure – ''B''.

28. DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors'' Responsibility Statement, it is hereby confirmed that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2014 and of the profit of the Company for the year ended on that date;

(iii) The Directors have 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; and

(iv) The Directors have prepared the annual accounts of the Company on a ''going concern'' basis.

29. CORPORATE GOVERNANCE

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by various stakeholders. The practices emanate from the need to position multi-layered checks and balances at various levels to ensure transparency of its operations in the decision making process.

In terms of Clause 49 of the Listing Agreement, a report on Corporate Governance for the year ended March 31, 2014, supported by a certificate from the Company''s Statutory Auditors confirming compliance of conditions, forms part of this Report.

ONGC has implemented the mandatory Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance to the maximum extent possible.

Your Company has voluntarily got its Secretarial Compliance Audit conducted for the financial year ended 31st March, 2014 from M/s A.N. Kukreja& Co., Company Secretaries in whole-time practice; their report forms part of this Annual Report.

In line with global practices, your Company has made available all information, required by investors, on the Company''s corporate website www.ongcindia.com

Apart from the mandatory measures required to be implemented as a part of Corporate Governance, ONGC has gone the extra mile in this regard for the benefit of its stakeholders:

i. Whistle Blower Policy: A total of 27 Protected

Disclosures till date have been processed through the Whistle Blower mechanism of ONGC which was implemented from December 01, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is applicable to all employees of the Company and has been uploaded on the intranet of the Company.

ii. MCA Voluntary Guidelines on Corporate Governance: ONGC has implemented the voluntary guidelines on Corporate Governance issued by Ministry of Corporate Affairs to the extent feasible and within the competency domain of the management.

iii. Enterprise-wide Risk Management (ERM) framework: In line with the requirements of Clause 49 (of the Listing Agreement), your Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM) Policy throughout the organization. The Audit, Ethics & Financial Management Committee periodically reviews the risk assessment and minimization process in ONGC.

iv. Lead Independent Director: Shri. Arun Ramanathan was the Lead Independent Director till conclusion of his term on 19.06.2014. The election of next Lead Independent Director shall be decided by the Independent Directors.

v. Meeting of Independent Directors: The Independent Directors met once during 2013-14.

30. STATUTORY DISCLOSURES

Section 274(1)(g) of the Companies Act, 1956 is not applicable to the Government Companies. Your Directors have made necessary disclosures, as required under various provisions of the Act and Clause 49 of the Listing Agreement.

Particulars of Employees

As per Notification No. GSR 289(E) dated March 31, 2011 issued by the Ministry of Corporate Affairs, amending provisions of the Companies (Particulars of Employees) Rules, 1975 issued in terms of section 217(2A) of the Companies Act, 1956, it is not necessary for Government companies to include the particulars of employees drawing salaries of Rs.6 million or more per annum, employed throughout the financial year or, Rs.0.5 million per month, if employed for part of the financial year. As your company is a Government company, the information has not been included as a part of the Directors'' Report.

31. ENERGY CONSERVATION

The information required under section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is annexed as Annexure – ''C''.

32. AUDITORS

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s Mehra Goel & Co, M/s S Bhandari & Co, M/s Ray & Ray, M/s Varma & Varma and M/s G D Apte & Co., Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2013-14. The Statutory Auditors have been paid a remuneration of Rs.22.92 million (previous year Rs.20.21 million) towards audit fee and certification of Corporate Governance Report. The above fees are exclusive of applicable ser vice ta x and reimbursement of reasonable travelling and out of pocket expenses actually incurred.

33. Auditors'' Report on the Accounts

The Comments of Comptroller & Auditor General of India (C&AG) form part of this Report as per

Annexure-''D''. There is no qualification in the Auditors Report and there are no supplementary comments by C&AG under section 619(4) of the Companies Act, 1956. Notes to the Accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further comments.

You would be pleased to know that your Company has received Nil comments from C&AG and Statutory Auditors for the year 2013-14. This is the eighth year in a row that the organization has received Nil comments.

34. COST AUDIT

Seven firms of Cost Accountants were appointed as Cost Auditors for auditing the cost accounts of your Company for the year ended 31st March, 2014 by the Board of Directors. The Cost Audit Report for the year 2012-13 has been filed under XBRL mode within the due date of filing.

35. DIRECTORS

Since the 20th Annual General Meeting held on 25.09.2013, Shri Shaktikanta Das, Government Nominee Director resigned on 29.12.2013, Shri P K Borthakur Director (Offshore) superannuated on 31.01.2014, Shri Sudhir Vasudeva, Chairman & Managing Director superannuated on 28.02.2014. The term of Dr. D. Chandrasekharam concluded on 10.03.2014 and that of Prof Deepak Nayyar and Shri Arun Ramanathan concluded on 19.06.2014. Shri K S Jamestin, Director (HR) superannuated on 31.07.2014.

Shri T K Sengupta took over as Director (Offshore) on 01.02.2014. Shri Dinesh Kumar Sarraf assumed charge of the post of Chairman & Managing Director on 01.03.2014. Dr. Subhash Chandra Khuntia, Additional Secretary & FA, Ministry of Petroleum & Natural Gas, joined the Board as Government nominee Director on 01.05.2014. Shri Ashok Varma took over the charge of Director (Onshore) on 19.06.2014 and Shri Desh Deepak Misra assumed the charge of Director (HR) on 01.08.2014.

Shri P Umashankar and Shri S Ravi joined the Board on 29.11.2013 and Shri R K Singh joined the Board on 23.05.2014 as non-official part-time directors

The Board places on record its deep appreciation for the excellent contributions made by Shri Shaktikanta Das, Shri P K Borthakur, Shri Sudhir Vasudeva, Dr. D. Chandrasekharam, Prof. Deepak Nayyar, Shri Arun Ramanathan and Shri K S Jamestin during their tenure.

The strength of the Board of Directors of ONGC as on August 5, 2014 is 15, comprising 7 Executive Directors (Functional Directors including CMD) and 8 Non- Executive Directors, out of which two are Government nominees and six are Independent Directors. Ministry of Petroleum & Natural Gas has been requested to appoint requisite number of Independent Directors to comply with the Listing Agreement.

36. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Statutory Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and members of the ONGC Family for their faith, trust and confidence reposed in ONGC.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

Place : New Delhi On behalf of the Board of Director

Date : 8th August 2014 (Dinesh Kumar Sarraf)

Chairman & Managing Director

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Mar 31, 2013

Dear Shareholders,

The behalf of the Board of Directors of your company it is my privilege to present before you the, 20th Annual Report on the business and operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its Audited Statements of Accounts for the year ended March 31,2013, together with the Auditors'' Report and Comments on theAccounts by the Comptroller and Auditor General (CAG) of India.

The fiscal 2012-13 has been yet another year of sustained performance, success and growth for your Company, which along with the other group companies, excelled in its endeavours; particularly in its core activities of Exploration and Production (E&P) of crude oil and natural gas. Your company scaled new heights and created a world record by drilling the well NA7-1 in KG-DWN-2004/1 block in the East Coast at a water depth of 3,165 meters (10,385 feet); the deepest in the world. The significant milestones achieved by your Company during the year are:

- Your Company accreted 84.84 Mtoe of ultimate reservesin the domesticfields (ONGC operated); the highestin the lasttwenty two years.

- For the 8th consecutive year your company maintained the Reserve Replacement Ratio (RRR) of more than 1. RRR during the year has been 1.84.

- The Turnover of the Company stood at Rs. 833,090 million, the highest-ever. The turnover of the ONGC Group atRs. 1,658,488 million has also been the highest-ever.

- Your Company recorded a net profit of Rs. 209,257 million during the year under review.

- During 2012-13. ONGC had to share the highest-ever under-recovery of Rs. 494,207 million (an increase ofRs. 49,550 million over the previous year) towards the under-recoveries of Oil Marketing Companies (OMCs). Further, there has been increase in Cess by Rs. 42,140 million during the year. This trend of high under-recoveries and burden of Cess, if continued, is likely to draw down the cash reserves of the Company and impact the exploration, production and acquisition plans of ONGC and OVL apart from affecting the bottom line in near future.

- ONGC Videsh Limited (OVL), wholly owned subsidiary of your Company, recorded highest-ever Net Profit ofRs. 39,291 million.

- Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of your Company, recorded highest-ever thru''putof 14.40 MMT.

- Your Company received ''Excellent'' MoU performance ratingfortheyear 2011-12 with a score of 1.222; the highest since adoption of the MoU system in 1988.

These achievements reflect your Company''s proven commitment towards sustained growth and performance excellence. Consistently driven by well-defined growth strategies, your company delivers and improves performance year-on-year basis. Our performance is the benchmark of excellence in various facets of our activities and has been well recognized through peer-and-public evaluations.

Global Recognition

Your Company moved up 16 positions to be ranked 155th in the 2013 Forbes Global 2000 list of world''s biggest companies and is ranked 23rd among global oil and gas companies based on sales, profits, assets and market value. It is my privilege to bring to your kind notice that the ''2012 EU Industrial R&D Scoreboard'' listed ONGC at the 36th position in the list of oil and gas companies based on Research and Development (R&D) expenditure. You will be pleased to know that ONGC is the only company in this list from India. As per the Platts 2012 rankings, your Company is ranked as the 3"1 largest listed E&P Company in the world.

As a fitting acknowledgment of your Company''s motto to ''Grow GREEN'' and a testament of its green credentials, ONGC has been ranked at 386 by the Newsweek Green Ranking 2012 and 15th among the energy companies, above global energy majors like Chevron, Lukoil, ConocoPhillips, Gazprom, Sinopec, Exxon Mobil and Petro China. Top rankers in the list are mostly the companies from retail, IT or Banking sectors which have minimal carbon footprints due to the inherent nature of their businesses.

Performance: 2012-13

Exploration

During the year, your company made 22 oil and gas discoveries in domestic fields (operated by ONGC). Out of these, 12 discoveries were made in the new prospects whereas 10 were new pool discoveries. Nine discoveries were made in NELP blocks and thirteen in the nomination blocks.

The 12 newdiscoveries made during the year are:

- Phulani-1 (Oil) in Assam & Assam Arakan basin,

- Vadatal-5 (Oil & Gas) in Cambay basin,

- Koravaka-1 (Oil & Gas),Bantumilli South-1 (Gas), Mukkamala-1 (Gas)and Vanadurru South-1 (Oil & Gas) in onlandKrishna- Godavari basin,

- KGOSN041 NASA-1 (Saveri#1, Gas) in KG Offshore,

- KGD051NAA-1 (Gas) in KG deep-water offshore,

- Pandanallur-8 (Oil & Gas), Madanam-3 (Oil & Gas) and Pandanallur-7 (Gas) in onland Cauvery basin and

- MBS051NBA-A(Gas) in Western Offshore basin.

The 10 newpool discoveries made during the yearare:

- Agartala Dome-37 (Gas) in Assam &Assam-Arakan Fold belt,

- Mandapeta West-12 (Gas) in onland KG basin,

- KG-DWN-98/2-A-2 (Oil &Gas) in KG deep-water offshore,

- C-39-14 (Oil & Gas), BH-68 (Oil &Gas), D1-D-1 (Oil) in Mumbai Offshore

- Aliabet-4(Gas)inGulfof Cambay, &

- Anklav-9 (Oil), Motera-36 (Oil) and Mansa-36 (Oil) in Western onland.

Discoveries in Bantumilli South-1 (Gas) and Vanadurru South-1 (Oil & Gas) have strengthened the prospectivity of the area and have opened up the entire adjoining tract for hydrocarbon exploration. Basement oil and gas discoveries in Madanam-3 (the first hydrocarbon strike in ONGC operated NELP blocks in Cauvery onshore Basin) and Pandanallur-8 (Oil & Gas) discovery in Cauvery onshore Basin and BH-68 (Oil & Gas) in Mumbai offshore has given huge impetus towards basement being a prolific play. KG-DWN-98/2-A-2 (Oil & Gas) discovery in NELP deep-water block KG-DWN-98/2 has given a definite positive fillip to ONGC''s efforts towards monetizing discoveries in the Northern Discovery Area (NDA) of this block. This is the first time that a substantial amount of oil has been established in the block. Atthe same time, the well DWN-U-3 has given the highest quantity of commercial gas i.e., 7 LCMD.

New pool discovery (D1-D-1) in N.B. Prasad (D-1) field has been a significant discovery and with this, oil and gas in-place volume of the field has increased to 149 MMT of oil and oil equivalent gas (O OEG); making it the third largest field after Mumbai High and Neelam- Heera fields. This discovery has already been put on production. In addition to these discoveries, 23 more exploratory wells drilled for delineation/ appraisal of known pays in existing fields proved to be hydrocarbon bearing and have resulted in field growth.

Out of 14 onshore discoveries made during 2012-13, four discoveries (Anklav-9, Motera-36, Mandapeta West-12 & Phulani-1) have already been put on production and one discovery (Mansa-36) is under trial production. Efforts are on for bringing the other discoveries on production atthe earliest. One discovery in offshore sector (D1-D-1) has also beenputon production.

Reserve accretion & RRR

Your Company accreted 265.65 million metric tonnes of oil equivalent (MMtoe) of In-place volume of hydrocarbon in the domestic basins (operated by ONGC). The ultimate reserves accretion of 84.84 MMtoe is the highest in last 22 years. Total reserve accretion in domestic basins including ONGC''s share in PSC JVs stands at 89.08 MMtoe. With a Reserve Replacement Ratio (RRR) of 1.84 (with 3P Reserves), it was the 8th consecutive that your Company has maintained a RRR of more than one.

Voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69) were also made by your Company. The Ultimate Reserve accretion during the year (84.84 MMtoe) has surpassed the record breaking performance of previous fiscal (84.13 MMtoe).

A snapshot of ONGC''s Reserve Accretion Profile:

Ultimate Reserve (3P) accretion O OEG (in MMtoe)

Year Domestic ONGC''s share Total OVL''s Share Total Assets in Domestic Domestic in JVs Reserve Foreign Assets (1) (2) (3)=(1) (2) (4) (5)=(3) (4)

2008-09 68.90 2.82 71.72 135.08 206.80

2009-10 82.98 4.39 87.37 0.35 87.72

2010-11 83.56 0.29 83.35 46.23 130.08

2011-12 84.13 1.31 85.44 -0.31 85.13

2012-13 84.84 4.24 89.08 14.16 103.24

Statement of Reserve Recognition Accounting

The concept of Reserve Recognition Accounting attempts to recognize income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization engaged with exploration and production of hydrocarbons with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information:

a) Proved Oil and Gas reserve quantities

b) Capitalized costs relating to Oil and Gas producing activities

c) Cost incurred for property acquisition, exploration and development activities

d) Resultsofoperations for Oil and Gas producing activities

e) Astandardized measure of discounted future net cash flows relating to proved Oil and Gasreserve quantities

Your Company has disclosed information in respect of (a) to (d) above in the Annual Financial Statements.

Your Company has also made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserve atAnnexure-Ato this report as statement of Reserve Recognition Accounting (RRA).

Oil & Gas production

It is my pleasure to inform you that during FY''13, your Company has been the largest producer of oil and gas in the country (from its domestic operations) contributing 69 per cent of oil and 62.28 per cent of natural gas production.

Oil & Gas production of ONGC Group, including PSC-JVs and from overseas Assets has been 58.71 MMtoe (against 61.18 MMtoe during FY''12). The major reason for this relative drop in production during FY''13 is the geopolitical situation and unrest in Sudan, South Sudan and Syria which direclty affected production from our assets in these countries. At the same time, natural decline in domestic fields has also been a contributing factor to this year''s lower production figures.

Out of the total production of 30.46 MMT of crude oil, 74 percent production came from the ONGC operated domestic fields, 14 per cent from the overseas assets and balance 12 percent from domestic joint ventures. As far as natural gas production is concerned majority of production (84 per cent) came from ONGC operated domestic fields and of the remaining, 10 per cent came from overseas assets and 6 per cent from domestic joint ventures.

Production from overseas assets

ONGC Videsh Limited (OVL), the wholly owned subsidiary of your Company, has eleven producing assets in eight countries - Venezuela (1), Brazil (1), Colombia(1), Sudan (1), South Sudan (2), Syria(1), Vietnam (1), Russia(2) andAzerbaijan (1).

Total production from these overseas assets during FY''13 has been 7.26 MMtoe of O-KDEG (Crude oil: 4.34 MMT &Gas: 2.92 BCM). 74 percent of the production was contributed by the assets in Russia (36.5 percent), Vietnam (29.5 percent), Sudan & South Sudan (8.3 per cent), and the remaining 26 per centfrom the assets in Syria, Colombia, Venezuela, Brazil andAzerbaijan.

New projects

The Board of your Company approved redevelopment of Western Periphery of Mumbai High South and Integrated development of Bassein field during the year with an investment of Rs. 41,132 million. Besides this, pipeline replacement Phase-Ill project in the west coast was also approved with an investment of Rs. 25,473 million.

During the year, your Company completed four major projects - Construction of new MHN Platform, Revamping of WIN Platform, Low pressure gas processing and compression at Rajahmundry and Additional gas processing facility at Hazira Plant.

Overall Production and Sales Performance

Presented below are the highlights of production and sales of Crude Oil, Natural Gas and Value Added Products (VAP):

Production Qty Sales Qty Value (Rs. in million) Unit FY'' 13 FY'' 12 FY'' 13 FY'' 12 FY'' 13 FY'' 12

Direct

Crude Oil (MMT) 26.13 26.93 23.69 23.09 533,268 507,873

Natural Gas (BCM) 25.34 25.51 20.16 20.20 165,400 141,396

Ethane/ Propane 000 MT 428 463 425 461 13,440 12,741

LPG 000 MT 1,006 1,037 1,005 1,033 31,484 23,711

Naphtha 000 MT 1,534 1,557 1,520 1,557 76,804 72,167

SKO 000 MT 108 79 106 79 3,686 1,520

Others 1,589 1,850

Sub Total 825,671 761,258

Trading

Motor Spirit 000 KL 0.56 0.43 42 30

HSD 000 KL 0.02 0.07 1 3

Others 0 0

Sub Total 43 33

Total 825,714 761,291

1. Financial Results

Despite volatile markets and sharing of highest-ever under-recoveries of Rs. 494,207 million during the year, your Company has earned a Profit After Tax (PAT) ofRs. 209,257 million (Rs. 251,229 million in 2011-12), down 16.70 per cent. During the year under review, your Company registered Gross revenue ofRs. 833,090 million (Rs. 768,871 million in 2011-12), up 8.35 per cent.

Highlights

- Gross Revenue : Rs.833,090 million

- Profit After Tax (PAT) : Rs.209,257 million

- Contribution to Exchequer : Rs.408,806 million

- Return on Capital Employed : 38.27%

- Debt-Equity Ratio : 0.00

- Earnings Per Share (Rs.) : 24.46

- Book Value Per Share (Rs.) : 144

(Rs. in million)

Particulars 2012-13 2011-12

Revenue from operations 833,090 768,871

Other Income 54,367 44,529

Total Revenues 887,457 813,400

Profit Before Interest Depreciation & Tax (PBIDT) 389,455 410,327

Profit Before Tax (PBT) 305,443 366,425

Profit After Tax (PAT) 209,257 251,229

APPROPRIATION

Interim Dividend 76,999 66,305

Proposed Final Dividend 4,278 17,111

Tax on Dividend 13,012 13,286

Transfer to General Reserve 114,968 154,527

TOTAL 209,257 251,229

Previous year figures have been regrouped wherever necessary.

Reduction in FY 12 -13 profit as compared to FY 11-12 is primarily due to increase in share of under recoveries (Rs. 49,550 Million), additional Cess (Rs. 42,140 Million) and exceptional income accounted for in FY 11-12 on account of Royalty adjustment for JV Block with M/s Cairn in Rajasthan, partly offset by increase in gross revenue.

It would also be pertinent to mention that the stand-alone PAT of ONGC for 2012-13 contribute more than 86% of the Group''s PAT whereas ONGC (stand alone) accounts for just 50.2% of the Group''s revenues. However, if the present trend of under-recoveries and Cess burden on ONGC continues, the profitability and surplus generating capacity of the Company would be affected adversely; thereby may have impacton future growth of the group.

2. Dividend

Your Company paid interim dividend ofRs. 9.00 per share (180 per cent) in two phases (Rs. 5.00 andRs. 4.00). The Board of Directors have recommended a final dividend ofRs. 0.50 per share (10 per cent) making the aggregate dividend atRs. 9.50 per share (190 per cent) as compared toRs. 9.75 per share (195 percent) paid in 2011-12. The total dividend will absorbRs. 81,277 million, besidesRs. 13,012 million as tax on dividend and works out to 45.06 percentof PAT against 38.49 percent in 2011-12

3. Management Discussion and Analysis Report

As per the terms of Clause 49(l V) (F) of the Listing Agreement with the Stock Exchanges, a Management Discussion and Analysis Report (MDAR) has been included and forms part of theAnnual Report of the Company.

4. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards (AS-1 to AS-29) and Successful Efforts Method as per the Guidance Note on Accounting for Oil & Gas Producing Activities issued by The Institute of Chartered Accountants of India (ICAI) and provisions of the Companies Act, 1956. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared under the Revised Schedule VI format of the CompaniesAct, 1956.

5. Subsidiaries

I. ONGCVidesh Limited (OVL)

ONGC Videsh Limited (OVL), the wholly-owned subsidiary of your Company for E&P activities outside India, achieved the highest-ever profit (PAT) ofRs.39,291 Million during FY'' 13, an increase of 44.4 per cent as compared to the PAT of Rs.27,211 Million during FY''12. OVL''s share in production of oil and oil equivalent gas (O OEG), together with its wholly-owned subsidiaries ONGC NileGanga B.V., ONGC Amazon Alaknanda Limited, Imperial Energy Limited and CaraboboOneAB, was 7.260 MMtoe during FY''13 as compared to 8.753MMote during FY'' 12. The oil production decreased from 6.214 MMT during FY''12 to 4.341 MMT during FY''13 primarily due to the geopolitical situation in Sudan, South Sudan and Syria and the natural decline in different matured fields in Sakhalin- 1, Russia, San Cristobal Project, Venezuela and BC-10, Brazil.

OVL has resumed its production from Block 5A, South Sudan on April 6,2013 and from Blocks 1,2 & 4, South Sudan on April 13,2013. However, the operations of Al Furat Project (AFPC), Syria would resume only after improvement in geopolitical situations and softening of sanctions. OVL Furat Project presently has participation in 32 assets in 16 countries out of which 11 are producing assets, 5 discovered/under-development assets, 14 exploratory assets and 2 pipelines.

Significant highlights of OVL during FY''13 are:

i. Acquisition of Hess Corporation''s 2.7213 per cent participating interest in the Azeri, Chirag and the Deep Water Portion of Guneshli Fields in the Azerbaijan sector of the Caspian Sea ("ACG") and 2.36 per cent interest in the Baku-Tbilisi-Ceyhan ("BTC") Pipeline was completed on March 28,2013. The acquisition would bring about 9 per cent additional proved reserves to the portfolio of OVL and daily oil production of about 19,000 barrels (aboutO.9 MMT per annum.

ii. OVL has won two exploration blocks in Colombia under Colombian Bid Round 2012 (i) Offshore block Guaoff-2 in Guajira Basin with 100 percent Participative Interest (PI) and (ii) Onshore Llanos-69 (LLA-69) block in prolific llanos basin of Colombia was won by Mansarovar Energy Colombia Limited (MECL); a 50:50 joint venture between OVL and Sinopec of China.

iii. OVL discovered Oil in the first well of the onshore exploration block CPO-5 in Colombia in which it is the Operator with 70 per cent participating interest. The first of the two commitmentwells i.e. Kamal-1 was spudded on October 29,2012 and drilled up to the target depth of 10,500 feet with oil discovery. The second well is currently under testing with encouraging results.

iv. The developmentof Lan-Do field in Block 06.1, Vietnam, where OVLhas 45 per cent PI, has been completed and the field was putto production on October 7,2012. The completion of Lan-Do field enhanced the production capacity of the Block 06.1 by 0.20 BCM.

v. OVL has relinquished/ surrendered its interest from three non-operated exploration blocks namely N-25 to 29 & N-36 in Cuba; BM-S-74and BM-BAR-1, both in Brazil due to unsuccessful exploratory wells.

vi. Project Carabobo-1 in Venezuela is under development and had started early production in January 2013.

vii. OVL made an inaugural US$ bond offering in international capital market with a duel tranche US$ 800 million Notes in April, 2013 to part finance the ACG and BTC acquisition. The offering was well received with the order book closing at about US$ 3 billion. The 5 year tranche of US$ 300 million was priced at a spread of 190 basis point above the 5 year US treasury at yield of 2.574 per cent per annum and the 10 year tranche of US$ 500 million was priced at a spread of 210 basis point above the 10 year US treasury at yield of 3.756 per cent per annum. This inaugural bond offering, guaranteed by the parent company ONGC, represents the largest REG-S only issuance by an Indian issuer in the US$ bond markets at the lowest coupon rates and has set a benchmark in pricing by Indian issuer.

Direct Subsidiaries and Joint Ventures of OVL

i. ONGC Nile Ganga B.V. (ONGBV)

ONGBV, a subsidiary of OVL, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25 per cent Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.596 MMT during 2012-13. ONGBV holds 25 per cent Participating Interest (PI) in

Greater Pioneer Operating Company (GPOC), South Sudan but due to adverse geo-political conditions, OVL could not produce any oil in GPOC, South Sudan during FY''13.

ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria with its share of oil and gas production of about 0.126 MMtoe during FY'' 13. ONGBV holds 40 per cent PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BVwith its share of oil production of about 0.800 MMT during FY'' 13. ONGBV holds 15 per cent PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltdawith its share of oil and gas production of about 0.303 MMtoe during FY'' 13. ONGBV held 43.5 per cent PI in exploratory block BM-S-74 and 25 per cent PI in exploratory block BM-BAR-1 and holds Block BM-SEAL-4 all located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltda. ONGBV also holds 8.347 percent PI in South EastAsia Gas Pipeline Co. Ltd., (SEAGP) Myanmarfor Pipeline project, through its wholly owned subsidiary ONGC Caspian E&P B.V.

ii. ONGC Narmada Limited (ONL)

ONLhas been retained for acquisition of future E&P projects in Nigeria.

iii. ONGC Amazon Alaknanda Limited (OAAL)

OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY'' 13, OVL''s share of oil production in MECL wasabout0.552MMT.

iv. Imperial Energy Limited (Erstwhile Jarpeno Limited)

Imperial Energy Limited (Name changed from Jarpeno Limited with effect from April 19,2013), a wholly-owned subsidiary of OVL incorporated in Cyprus, holds Operatorship with 100 per cent PI in Imperial Energy having its main activities in the Tomsk region of Western Siberia, Russia. During FY'' 13, Imperial Energy''soil production was about0.560 MMT.

v. CaraboboOneAB

Carabobo One AB, a wholly-owned subsidiary of OVL incorporated in Sweden, holds 11 per cent PI in Carabobo-1 Project, Venezuela. The early production has already started from firstwell (CG0005) on 27th December 2012 @ 300 bopd.

vi. ONGC (BTC) Limited

ONGC (BTC) Limited holding 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline ("BTC") with effect from 28th March, 2013 owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude from theACG fields from Azerbaijan to Mediterranean Sea.

vii. ONGC Mittal Energy Limited (OMEL)

OVL along with Mittal Investments Sari (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS together hold 98 per cent equity shares of OMEL in the ratio of 49.98 per cent (OVL) and 48.02 per cent (MIS) with the balance 2 per cent shares held bvSBI Capital Markets Ltd. OMEL held 45.5 per cent PI in exploration Block OPL 279, Nigeria and holds 64.33 per cent PI in exploration Block OPL 285, Nigeria. OMEL also holds 1.11 per cent of the issued share capital of ONGBV by way of Class-C shares issued by ONGBV exclusively for AFPC Syrian Assets; such investment being financed by Class-C Preference Shares issued by OMEL in the ratio of 51:49 to OVL and MIS respectively.

II. Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company continues to hold 71.62 per cent equity stake in MRPL, a Schedule A Mini Ratna, which is a single location 15 MMTPA Refinery on the west coast.

Performance Highlights FY2012-13

MRPLachieved the highest-everthru''putof 14.40 MMTanditproduced 13.4 MMTof petroleum products, the highest-ever.

MRPLexported 6.82 MMT of products against5.59 MMT in the previousyear.

- Crude sourcing: 14.2 MMT; Iran (28.8 per cent), Saudi Arabia (19.4 per cent), ADNOC (15.9 per cent), Kuwait (8.9 per cent), Mumbai High (12.3 percent), Azeri (4.2 percent) & Spot (10.6 percent).

MRPL achieved all its MOU targets.

MRPL incurred a net loss of Rs. 7,569.10 million during FY''13 mainly on account of reduced gross margins and foreign exchange fluctuation loss ofRs. 5,364.9 million. Accordingly, no dividend has been declared for the FY''13.

Marketing

In view of the continued under recoveries in retail marketing of Auto fuels, the Company operated in a limited way, thereby keeping the under recoveries to the minimum. The Company is in all readiness to take up retail marketing within a short time,if the under recoveries are eliminated.

Retail Operations

Govt, has announced complete decontrol of HSD prices for bulk consumers and MRPL has already made inroads in the bulk HSD market. In line with the Govt, policy towards eventual decontrol of HSD in retail segment, MRPL has taken cautious steps to set up few retail outlets in select markets and the advertisement for the same has been released. MS prices remain decontrolled and market determined and sales from existing retail outlets continue to grow.

Phase III - Brownfield expansion Project & SPM

Under Phase-Ill expansion of MRPL, Hydrogen generation unit and Diesel Hydro-Treater Unit have been commissioned along with Amine Treating Unit and Stripped sour water units. At the same time, SBM/SPM trial run was also undertaken. Commissioning of SRU-3 will be done after the replacement of the gaskets. The Phase-Ill project is expected to be complete by this year end.

6. Exemption in respect of Annual Report of Subsidiaries and Consolidated Financial Statement

Ministry of Corporate Affairs (MCA) vide circular dated February 8, 2011 and clarification dated February 21, 2011 decided to grant a general exemption from the applicability of Section 212 of the Companies Act, 1956 from attaching the Balance Sheet and Profit & Loss Account prepared regarding the financial year ending on or after March 31, 2011, in relation to subsidiaries of those companies which fulfil various conditions including inter-alia approval of the Board of Directors for not attaching the balance sheet and profit & loss account of the subsidiary concerned. Your Board has accorded necessary approval in this regard for not attaching the Balance Sheet and Profit & Loss Account of its subsidiaries (i) ONGC Videsh Limited (OVL) and (ii) Mangalore Refinery and Petrochemicals Ltd. (MRPL). All the conditions mentioned in the circular are being complied with by ONGC. Full Annual Report of ONGC including its subsidiaries will be made available to any shareholder, if he/she desires. Further, Annual Reports of MRPL and OVL are also available on website www.mrpl.co.inandwww.ongcvidesh.com respectively.

In accordance with the Accounting Standard (AS)-21 on "Consolidated Financial Statements" read with AS-23 on "Accounting for Investments in Associates" and AS-27 on "Financial Reporting of Interests in Joint Ventures", audited Consolidated Financial Statements for the year ended March 31,2013 of the Company and its subsidiaries form part of the Annual Report.

7. Joint Ventures/ Associates

i. ONGC Petro-additions Limited (OPaL)

Your Company has promoted OPaL, a Joint Venture (JV) Company, with envisaged equity stake of 26% along with GAIL (15.5%) and GSPC (5%); the balance equity is to be tied up from Strategic Partners / FIs / IPO. It is a mega downstream petrochemical integrated project at Dahej SEZ put in place for utilizing the in-house production of C2-C3 and Naphtha from various units of ONGC. It is scheduled to be completed by 01 2014.

Present status

Overall Cumulative progress is 77.65 per cent as on March 31,2013.

Total cumulative expenditure as on March 31,2013 is Rs. 137,081 million. Approved project cost is Rs. 213,960 million. Debt closure has been attained with the execution of Rupee Term Loan agreement, forRs. 149,770 million on 29.01.2013.

ii. ONGC Mangalore Petrochemicals Limited (OMPL)

OMPLisa value-chain integration project for manufacturing Para-Xylene and Benzene from the Aromatic streams of MRPL promoted by ONGC with an envisaged equity participation of 46% along with MRPL (3%) with balance equity being tied up.

Present status

Overall cumulative progress is 91.83 per cent ason March 31,2013.

Total cumulative expenditure on the project isRs. 40,170 million. Approved project cost isRs. 57,500 million. The scheduled completion of the project is slated for Q3 of FY 2013-14.

iii. Dahej SEZ Ltd (DSL)

It is envisioned as a multi-product SEZ at Dahej in coastal Gujarat for setting up world-class mega infrastructure facilities which would anchor ONGC''s upcoming C2-C3 Extraction Plant and a value-chain integration project (OPaL).

Paid up capital: ONGC: 49.99% &GIDC: 49.99%

Envisaged equity structure: ONGC: 23%; GIDC:26%; balance equity is being tied up.

Present status

SEZ is already operational and units in SEZ have clocked export ofRs. 8,640 million in the FY''12 and Rs. 14,200 million in FY''13. 92 per cent of the leasable land has already been allotted and the remaining land is expected to be leased in the next two years.

iv. ONGC Tripura PowerCompany Ltd (OTPC)

OTPC is setting up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power Plant at Palatana, Tripura. The basic objective of the project has been to monetize idle gas assets of ONGC in land-locked Tripura state and to give further boost to exploratory efforts in the region. Your Company has promoted OTPC with an envisaged stake of 50% along with Govt, of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL- an IL&FS subsidiary) (24.5%); the balance is proposed to be tied up through IPO.

Present status

The total expenditure incurred on the project till March 31, 2013 isRs. 28,353 million against approved project cost of Rs. 34,180 million.

Entire debtfor the project has been tied up with Power Finance Corporation at a Debt: Equity ratio of 3:1.

Physical Progress: In Unit-I, unforeseen technical problems had arisen since first full-load trial operations in early Jan 2013. The same have been attended and the Unit-I has been restarted to commence trial operations to achieve commercial operations by July 2013. Unit-ll commissioning is now scheduled in August 2013.

The Palatana-Bongaigaon transmission line being implemented by NETC is now commissioned up to Byrnihat. This would facilitate full evacuation of power generated from Unit-I. For complete evacuation of Unit-ll power, the Byrnihat-Bongaigaon section of the line needs to be completed by December 2013 subject to resolution of certain issues related to forest clearance in Assam state.

v. Mangalore Special Economic Zone Limited (MSEZ)

With an envisaged equity stake of 26% along with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%), ONGC has proposed to set up MSEZ to serve as site for development of necessary infrastructure to facilitate and locate ONGC/ MRPL''s Aromatic complex being promoted by ONGC.

Present status

In respect of Pipeline Corridor development, Ministry of Environment & Forest (MoEF) clearance is awaited for construction works at Reach 2 (about 1.8 km). Pursuant to the presentation made by MSEZ to Expert Committee of MoEF on Feb 18-19, 2013, the committee has favourably recommended the case to MoEF.

As far as land acquisition issues at Reach 3 (about 1.5 km) is concerned, Gazette notification has already been issued by the Government of Karnataka; however, land price fixation is yet to be done by the Government.

Required work for river water infrastructure has been completed. Trial runs to MRPL and OMPL have also been conducted successfully. Facilities are ready for supply of water. Water supply agreement is under finalization.

vi. ONGC TERI Biotech Limited (OTBL)

OTBL is a Joint Venture company of ONGC which was incorporated on March 26, 2007, in association with ''The Energy Research Institute'' (TERI) with shareholding of 49 per cent each. Balance 2 per cent equity is held by the Financial Institutions. The JV has been promoted for addressing the requirement of Bioremediation of oily sludge, Microbial Enhanced Oil Recovery, prevention ofwax deposition in tubulars and solution for other oil field problems. The turnover of OTBL in FY''13 is Rs. 136.61 million and Profit after Tax is Rs. 40.05 million as against turnover of Rs. 129.96 million and Profitafter TaxisRs. 32.78 million in FY''12.

vii. PetronetMHB Limited (PMHBL)

PMHBL is a JV company where in ONGC (28.766%), HPCL (28.7%) and PIL (7.898%)have equity stakes. Balance 34.57 per cent of equity is held by leading banks. It owns and operates a multi-product pipeline to transport MRPL''s products to hinterland of Karnataka. Throughput in FY''13 is 2.816 MMT against 2.771 MMT during the last year. As per audited results for the year 2012-13, the turnover and PAT of PMH BL areRs. 834.53 million andRs. 273.09 million, respectively.

viii. Petronet LNG Limited (PLL)

ONGC has 12.5 per cent equity stake in PLL, identical to stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG terminal of PLL having a capacity of 10 MMTPA is currently meeting around 20 per cent of the total gas demand of the country. A new LNG terminal of 5 MMTPA capacity is under construction at Kochi and is expected to be completed by the 2nd quarter of FY''13. The turnover of PLL during 2012-13 is Rs.314,674 million (previous year Rs. 226,959 million) and net profit is Rs. 11,493million (previousyear Rs. 10,575million).

ix. Pawan Hans Limited (PHL)

ONGC has 49 per cent equity stake in PHL (previously known as Pawan Hans Helicopters Limited). Balance 51 per cent equity is held by the Government of India. PHL is one of Asia''s largest helicopter operators having a well-balanced operational fleet of 40 helicopters. It provides helicopter support for i ONGC''s offshore operations. PHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC. The accounts of PHLfor 2012-13 are under finalisation.

8. Other Projects/ Business initiatives

a. C2-C3-C4 Extraction Plant

Your company has set up a C2-C3-C4 extraction plant at Dahej with LNG from Petronet LNG Limited (PLL) as the feed stock. This plant will be supplying C2-C3-C4 extracts as feedstock to OPaL. Presently, the plant systems are under preservation and periodic inspection of static and rotary equipment is continuing as per Preservation Plan.

b. Urea Fertilizer Business

ONGC signed a Memorandum of Understanding (MoU) with M/s Chambal Fertilizers and Chemicals Ltd. (CFCL) and the Government of Tripura for setting up a 1.3 MMTPA capacity urea fertilizer plant in Tripura. MoU was signed on April 9, 2013 at Agartalain presence of Shri ManikSarkar, Hon''ble Chief Minister of Tripura. Feedstock for the proposed plant (Natural gas) will be supplied from Khubal field in AA-ONN-2001/1 block where substantial gas reserves have been established. Gas requirement for the plant is estimated to be 2.4 mmscmd. The project cost is estimated to beRs. 50,000 million. Government of Tripura will have 10 per cent equity in the venture.

c. LNG terminal

ONGC along with its consortium partners BPCL and Japanese conglomerate Mitsui signed an MoU with the New Mangalore Port Trust (NMPT) on March 18,2013. The MoU documents the Port''s No-Objection to carry out the feasibility studies and intention to extend all cooperation to the consortium in this regard. The MoU was executed in presence of Hon''ble Minister of Petroleum & Natural Gas Dr. M. Veerappa Moily and the erstwhile Chief Minister of Karnataka Shri Jagadish Shettar. The consortium expects to commission the facility by 2018.

9. Alliances & Partnerships for Business Growth a MoU with Ecopetrol

ONGC signed a MoU with Ecopetrol, Ecuador for collaboration on jointly studying the fan belt traps of the Cachar Region in India and cooperating on studying and developing EOR and IOR technologies during 7th National Oil Companies (NOC) Forum held during May 25-27,2012 at Istanbul.

b Collaboration Agreements with GAIL

ONGC signed the following four agreements with GAILon July 21,2012:

1. Gas Cooperation Agreement,

2. Gas Swap Agreementfor C2-C3 Plant,

3. OPaL Shareholders'' Agreement,

4. Side Letter for polymer marketing rights for GAIL.

While the Gas Cooperation agreement bestows rights on GAIL to market gas produced from ONGC fields on a case-by-case basis, the gas swap agreement is of importance for C2 extraction plant at Dahej as it facilitates swapping of domestic non-APM gas for shrinkage due to extraction of C2 components from PLL''sLNG. The Shareholders''Agreement spells out the ownership pattern in the OPaL project wherein ONGC and GAIL are inter-alia sponsors and the Side Letter bestows marketing rights on GAIL, which is running/expanding petrochemical plant at Pata and is in the process of setting up another one in Assam, for partial quantity of polymers produced by OPaLfacility.

c. Farm-out agreement with M/s INPEXfor block KG-DWN-2004/6

ONGC entered into a strategic partnership with M/slNPEX CORPORATION (INPEX), Japan''s largest national oil company. ONGC signed a Farm-Out Agreement (FOA) on November 5,2012, at New Delhi for handing over 26 per cent participating interest to M/s INPEX in the deep water exploration Block KG-DWN-2004/6 of Krishna-Godavari Basin, which was awarded to ONGC-led consortium under the NELP-VI licensing round. ONGC continues to remain as the operator with 34 per cent participating interest. The existing consortium partners GAIL (India) Limited (10%), Gujarat State Petroleum Corporation Limited (10%), Hindustan Petroleum Corporation Limited (10%) and Oil India Limited (10%) have given their consent to this farm out.

10. Information Technology

ONGC has strived to be at the forefront with regard to adoption, deployment and integration of Information Technology in the organisation, with special reference to its needs. In a knowledge-driven and technology-intensive industry such as oil & gas E&P, information technology establishes the vital links across the company''s many locations and varied workforce, essentially serving as its operation''s lifeline. Many of the IT achievements of the Company are regarded as benchmarks in the industry in terms of implementation of widespread systems integration and process automation. Some of the highlights for the FY''13 are:

Achieved over 99 per cent IT system availability.

Under "IT Skill & Proficiency Development Programme through Project Chetna", 8,100 training man-days were achieved. "Lotus notes e-Mail System" was upgraded.

Optimization of ONGC domain architecture along with up-gradation of "Enterprise Active Directory Services", with new hardware and software was also completed.

"Online Complaints Portal" for Corporate Vigilance was launched.

Deployment of standardized corporate version of Health Information System (HIS) at all the locations (except at Delhi),completed.

Surveillance audit of "ISO 20000 Certification" for ITIL based IT services and acquisition of "ISO 27000 Certification" for Infocom Data centers completed.

A Point-to-Multipoint "Broadband Wireless Access (BWA) Radio System" Project covering Western Onshore and Neelam Offshore completed which resulted in adequate bandwidth availability at remote field locations.

Point-to-Multipoint "Broadband Wireless Access (BWA) Radio System" for remaining sites of North East & Southern Assets of ONGC is under execution.

An LSTK projectforthe revamping of existing Info-com Datacenter in Chennai was completed at a cost of Rs. 20,320 million with seamless shifting of critical operational equipment to the new center in the same area and without any disruption to the existing services.

Project "Augmentation of Communication Infrastructure of Western Offshore on Turnkey basis" completed at Mumbai.

New 8 Mbps Lease line connectivity established between 11 High and Priyadarshini at Mumbai for Logging applications and 2 Mbps Lease line for 24x7 Medical control rooms at Poonam Nagar Colony, Mumbai.

11. Health, Safety and Environment (HSE) accreditations

ONGC attaches the highest priority to safety, occupational health and protection of environment in and around its working areas and affirms strict adherence to globally recognized and industry accredited best practices in its domain. In accordance with this commitment, ONGC has implemented globally recognized QHSE Management System conforming to the requirements of QHSE Certifications ISO 9001, ISO 14001 and ISO 18001 (OHSAS) atONGCfacilities.

Corporate guidelines on incident reporting, investigation and monitoring of recommendations was developed and implemented for maintaining uniformity throughout the organization in line with international practices. Some of the standout features of the Company''s exemplary HSE practices are - Regular QHSE internal audits, Fire safety measures, regular fire and earthquake mock drills, Health Awareness programs, water and electricity conservation, Material Safety Data Sheets (MSDS), Personal Protective Equipment (PPE), and identification and implementation of Environment Management Programmes (EMP) and Occupation Health & Safety (OHS) programs as per need of the units, near miss and Governance, Risk & Compliance (GRC) reporting.

12. Sustainability Development

The world today has only two options, either to stop generating GHGs (Green House Gases) and stop development as a corollary or synergise development with environment. ONGC, similar to the leading energy majors of the world, is striving to position itself as a leading organisation in sustainable management and is aiming to achieve sustainable development through a holistic approach to carbon management. Carbon Management Group synergises ONGC''s all business activities in termsof sustainable development.

All the six Sustainability Development (SD) projects undertaken as per the MoU with MoP&NG have been completed ahead of the schedule. All these SD projects have been assessed by an External agency (Ramky Enviro Engineers Ltd), which has submitted its report on April 15, 2013. As per the assessment, ONGC has achieved excellent grades in all the six SD projects. As a part of its Sustainability Development agenda, the following efforts have been undertaken by ONGC.

a. Water Management

Sustainable water management: Water foot printing is being implemented at two locations (Tripura & Cauvery Assets) and anamountofRs. 0.5 million wasexpended towards water mapping during theyear.

Rainwater Harvesting Programme (RWH): The programme is being actively undertaken in Vadodara and at Tripura Asset. Additionally, a number ofwells have been planned for recharging ground water table in Agartala.

b. Global Methane Initiative (GMI)

Global Methane Initiative (GMI) program activities have been carried as per the ONGC-USEPA ongoing MoU. Leak survey and estimation of fugitive emission was carried out at 13 installations across ONGC. This initiative has helped in recovery of around 3.88 MMSCM of fugitive methane which was added back to the production main stream.

c. Carbon Dioxide mitigation and low carbon initiatives

ONGC is in the process of finding an R&D solution to the vent C02 at Hazira Plant with a view to mitigating emission of C02to the environment.

d. Clean Development Mechanism (CDM)

ONGC has registered 10 CDM projects with UNFCCC (United Nations Framework Convention on Climate Change). This is probably the highest number of projects registered by any single entity in India. During the year, around 1,28,000 Certified Emission Reductions (CERs) (Carbon credits) have been issued, taking the overall CER tally to more than 1,40,000. Issuances being an annual activity after annual verification, more issuances are in the offing as four of the registered projects have already been successfully verified during the year under consideration.

The ten registered CDM projects with UNFCCC are:

Waste heat recovery from Process Gas Compressors (PGCs), of Mumbai High South (offshore platform) and using the recovered heat to heat process oil (Regn Ref No 0814).

Upgradation of Gas Turbine 1 (GT 1) and Gas Turbine 2 (GT 2) at co-generation plant of Hazira Gas Processing Complex (HGPC) (Regn. Ref No 0847)

Flare Gas Recovery project at Uran Plant( Regn. Ref No 1220) and Hazira Plant (HGPC) (Regn. Ref No 1354)

Energy Efficiency of Amine Circulation Pumps at Hazira plant (Regn. No 2648).

51 MWwind power project at Bhuj, Gujarat.

Green Building projects at Mumbai and Dehradun Gas Flaring Reduction at Neelam & HeeraAsset ONGC Tripura Power Company Ltd. (726 MW natural gas based power plant)

e. Carbon footprint

Your Company has initiated an organization wide carbon footprint activity in the year 2011-12 as a part of carbon and energy management. The carbon footprint is ready and eight types of mitigation possibilities have been identified, which may reduce the emission significantly (almost34%).

Business Responsibility Report

Securities &Exchange Board of India has introduced Clause 55 to the Listing Agreement with the Stock Exchanges, which states that Listed entities shall submit, as part of their Annual Report, Business Responsibility Report, describing the initiatives taken by them from an environmental, social and governance perspective. Accordingly, the first Business Responsibility Report-2012-13 has been drawn up and forms part of theAnnual Re port for2012-13.

13. Internal Control System

Your Company has a well-established and efficient internal control system and procedures. The Company has a well-defined delegation of the financial powers to its various executives through Book of Delegated Powers (BDP). The Integrated BDP is updated from time-to-time in line with the needs of the organisation as well as to bring further delegation. The Company has in- house Internal Audit Department commensurate with its size of operations. Audit observations are periodically reviewed by the Audit & Ethics Committee of the Board and necessary directions are issued whenever required.

14. Human Resources

ONGC cares and values for its human resource which is the bedrock of ONGC''s success story. To keep the employees'' morale high, your Company extends several welfare benefits to them and their families by way of comprehensive medical care, education, housing and social security. During the year 2012-13, your Company implemented various new and revised welfare policies for its employees.

15. Human Resource Development

32,923 ONGCians (as on March 31, 2013) dedicated themselves and contributed their efforts towards the excellent performance of your company. In response to the highly knowledge-driven and extremely competitive industry that your Company operates in, it has devised an effective and progressive workforce intake strategy that is suited well to counter the varied complexities and uncertainties of the business environment as well as aligned to overarching business plans of the organization. During the year, adequate number of people with requisite skill-sets were inducted to meet the requirements of the Company as well as replenish the manpower losson accountof high superannuation.

Your company believes that continuous development of its human resource fosters engagement and drives competitive advantage. One such initiative towards that end was the innovatively designed and highly popular ''Business Games'', an organization wide contest that puts to test the managerial and business acumen of the executives. During the year 2012-13, a total of 200 teams and 800 executives participated in the event.

Fun Team Games (FTGs) were organized for E0 and staff level employees to inculcate MDT (Multi-disciplinary Team) concept and a spirit of camaraderie and belongingness to the organization, which was very well received by the participants. During the year, 129 teams and 516 employees participated in FTGs. Your Company also conducted the Assessment Development Centre (ADC) for approximately 300 E-6 (DGM) level executives and provided them developmental inputs.

During the year, Mentoring Initiative was launched in a big way in your Company. Mentoring has been initiated for the motivation of the senior employees as well as to provide guidance and support to the younger employees. Your Company has partnered with global HR consulting firms to create a pool of accredited mentors in the organization. These mentors will support organization''s effort to hone young minds to successfully respond to the emerging business needs of your Company. As part of this Initiative, in the year 2012-13, over 900 senior level executives (E5 &E6) were selected and trained to be mentors for young mentees.

During the year, your Company launched a Suggestion Scheme, ESSENCE (Employees Suggestion Scheme for Engagement, Commitment and Efficiency) aimed at facilitating achievement of Organisational excellence by encouraging employees to put forth suggestions for improvement in various functional areasof the Corporation''s business and operations.

Training

Skill up-gradation is a vital component for driving excellence through Human Resource. Your Company has recently branded the spectrum of its training activities as EXPONENT- a comprehensive programme which nurtures the energy leaders of tomorrow.The program is facilitated by the ONGC Academy, Regional Training Institutes (RTIs), other in-house Institutes and through tie-ups with globally recognized trainers.

During the year, your Company continued its endeavour of equipping the employees with the latest knowledge in the specialized fields of upstream oil and gas sector by organizing training programs with the best of faculty from both India and abroad. A total of 16,255 executives and 3,712 non-executives were imparted appropriate training, spanning 207,447 training man-days, during2012-13.

During 2012-13, five batches of Graduate Trainees, totalling 691 in all, were imparted induction training. In order to keep the executives abreast of the latest advancements in cutting edge concepts and technologies in oil and gas exploration and production, 84 programmes were organized during 2012-13, including foreign faculty programmes. Around 250 senior level officers were exposed to Advanced Management Programmes with overseas learning componentthrough tie-ups with leading B-schools of the country.

16. Employee Welfare

Your Company continues to extend welfare benefits to the employees and their dependants by way of comprehensive medical care, education, housing and social security. Your Company continues to align company policies with the changing economy and business environment. Some of the key facetsof ONGC''s Employee Welfare model are mentioned herein -

(i) Employee Welfare Trusts

Your Company has established thefollowing major Trusts for welfare of employees:

- Employees Contributory Provident Fund (ECPF) Trust: Manages Provident Fund accounts of employees of your Company.

- The Post Retirement Benefit Scheme(PRBS) Trust: Manages the pension fund of employees of your company and settled 1,333 cases of withdrawal benefits during the year

- The Composite Social Security Scheme (CSSS): It provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. During the year, assistance to families of deceased employees under this scheme was revised to between Rs. 3 to 5 million. Under the Composite Social Security Scheme, 1,249 Cases were settled during the year 2012-13. Support to parent has been extended in case of Death/ Disability - 25 per cent of the admissible support amount shall be paid to surviving parents of the deceased employee. The balance 75 per cent amount shall be released as per the nominations recorded by the employee.

- Gratuity Fund Trust: This has been created to take care of payment of gratuity as per the provisions of the Gratuity Act.

- Sahayog Trust: Your Company''s ''Sahayog Yojana'' instituted under this Trust provides ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the welfare of the secondary workforce and their kin, who do not have adequate means of support. Under the scheme, an amount of'' 19 million was disbursed by the Trust during the year.

- Extension of Benefits under the Agrani Samman Scheme to retired employees: During the year, your Company relaxed the provisions of the Agrani Samman Scheme to cover those ex-employees who separated from the service of ONGC on accountof premature retirement due to disability or medical deficiency suffered while on duty.

(ii) Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15.68 percent and 8.98 percent respectively as on 31st March, 2013.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their upliftment in and around its operational areas:-

- Annual Component Plan

Under Annual Component Plan for SC/ST, every year an allocation of Rs.200 million is made. The amount under component plan is utilised for taking up various welfare measures for the welfare and upliftment of the needy people of SC/ST communities. This fund is especially meant for providing help and support in Education and Training, Community Developments Medical and Health Care.

Scholarship to SC/ST meritorious students for pursuing higher professional courses at different Institutes and Universities in the country.

Your Company has recently enhanced scholarships for meritorious SC & ST students from 100 to 500 for pursuing higher professional courses at different Institutes and Universities across the country in Graduate, Engineering, MBBS, PG courses of Geo-Sciences and MBA. The major feature of the scheme is that the scholarships have been divided equally for both male and female students and the allotted amount of scholarship per student isRs. 4,000/- per month subject to the conditions of the scheme. The annual budgetforthe scheme, considering its total implementation, isRs. 76 million per annum.

17. Industrial Relations

Your company has maintained harmonious industrial relations throughout the Corporation. During the year, no man days were lost due to internal industrial action. During the illegal strike of the contract labourers in Hazira Plant, from July 18,2012 to October, 2012, operations were continued uninterrupted and production was maintained without any adverse effect on the Company''s performance.

Your Company has evolved cutting edge industrial relations policies in addressing the aspirations of the contract labour deployed by contractors performing jobs and services for ONGC. During the year, your Company extended several benefits to its secondary workforce such as:

Your Company adopted the "Fair Wage Policy". The policy enjoins the Contractors to pay 35% higher wages as compared to minimum wage. This will also have a salutary effect on all statutory liabilities towards various social security schemes. The policy also provides that the contractors will obtain Group Gratuity cover and Group Insurance cover from LICforthe labour deployed in ONGC operations. The policy was rolled out during the year with your Company facilitating the signing of tripartite settlements between contractors and unions representing the contract labour in the presence of Labour Authorities on July 18,2012.

During the year, your Company effected upward revision of the daily wages, house rent subsidy (Rs. 1,000 to Rs. 3,000 per month) and education support for children of contingent workers (Rs. 1,000 per month). Besides, an ex-gratia amount of Rs. 24,000/- each year has also been extended to the contingent workers.

18. Women Empowerment

Women employees constitute approximately 6.37 per cent of your Company''s workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its lady employees for programmes organized by "Women in Public Sector (WIPS) and "Women in Leadership Roles". Also, a new award, ''Woman Executive of The Year'', was introduced by the Company during the year, as part of itsAnnualAward Scheme.

19. Grievance Management System (GMS)

Your Company provides an easily accessible machinery to the employees for redressal of their grievances, either through an informal channel (open hearing day) or through a formal channel. In this regard, a new GMS has been introduced in the Company, during the year.

Public Grievance Management System

All Key Executives of your Company have designated a publicized time slot thrice in a week to meet public representatives in order to speedily redress their grievances.

20. Implementation underthe Right to Information Act

An elaborate mechanism has been set up throughout the organization to deal with the requests received under the RTI Act, 2005. Central Assistant Public Information Officer (CAPIO) have been appointed at every work centre to redress the issues under RTI Act. 40 applications received in March, 2012 were carried forwarded to the year 2012-13.1,552 applications were received during the year; making a total of 1,592 applications. In addition to 6 first appeals received in March, 2012,320 were received during the year.

21. Implementation of Official Language Policy

Your Company makes concerted efforts to spread and promote the Official Language. Some of the important steps taken in this regard during the year were:

- Introduction of new Unicode Hindi software in all the offices,

- Hindi workshops conducted at regular intervals,

- Two International Hindi seminars and ''Kavi Gosthies'' were organized in Dehradun and Delhi,

- ONGC actively contributed in publishing bilingual Petroleum Terminology, initiated by MoP&NG, and

- Hindi Teaching Scheme of the Government of India is effectively implemented at all regional work centres

22. Improvement in Living and Working Conditions

As a testimony to its commitment for a cleaner tomorrow, your Company has undertaken the ''Green Building'' initiative for its upcoming offices at Chennai, Dehradun, Delhi, Hyderabad, Kolkata and Mumbai.. During the year, the ''Green Building'' at Dehradun was inaugurated.

Bachelor Accommodation facilities in Nazira, Sivasagar, Jorhat, Mumbai and renovation of existing offices, colonies and guest houses was successfully completed at many work-centres to make the facilities more in synchronization with present day requirements thus making the infrastructure energy efficient. Energy supply through alternate sources of energy - wind energy and solar panels- has been commenced in some of the townships.

Work-Life Balance

Your Company continued in its endeavours to ensure a desirable work-life balance for its employees. The townships at many work-centres were provided facilities like gymnasiums, music rooms etc.

The newly launched executive rejuvenation programme, called "Nav-Utsah" aims at educating the senior executives on stress management, conflict resolution, good parenting, besides Yoga, and Ayurvedic therapies. Some outbound team- building programmes like - family events at work centres and cultural programmes involving employees and their families - are routinely conducted for work-life balance. MahilaSamitisand ResidentWelfareAssociations(RWAs)playan active role in organizing these social and cultural events.

Your Company has a dedicated adventure wing named ONGC Himalayan Association which organizes adventure programme like mountaineering, trekking, white water rafting, snow skiing, desert safari, aero sports, etc. which adds towards moral engagement, team spirit, stress management, etc., among the employees.

23. Sports

Your Company continues to extend support to the sportspersons under its fold by way of extensive assistance towards training and participation in tournaments within the country and overseas for deserving performers. The scope for benefits to aspiring and promising sportspersons under the scholarship scheme has been further widened with the inclusion of games like squash, archery, ice-skating and equestrian sports. The total number of disciplines supported by ONGC by way ofjobs or scholarship is 23 as on date.

Your Company has also sponsored many prestigious sporting events during the year. ONGC was the "Principal Sponsor" of the Indian Contingent for the Olympic Games 2012. ONGC''s contribution for Team India was not only restricted to the monetary support ofRs. 10 million but also the 15 ONGCians making the qualifying mark and getting selected to represent India at this most prestigious event. Mr. Sudhir Vasudeva, CMD, ONGC & Mr. K S Jamestin, Director-HR took over the charge as President and Vice President respectively of All India Public Sector Sports Promotion Board (AIPSSPB), the largest conglomerate of public sector undertakings, in July 2012. It is a pleasure to inform you that two more ONGCians were conferred with National Awards - Arjuna Award to Ms. Kavita Raut (Athletics) and Ms. Aswini Ponnappa (Badminton). Today your Company boasts for fifteen Arjuna Awardees besides one Khel Ratna and two Padmashrees. Sports achievements during the year are detailed in Annexure-B.

24. Corporate Social Responsibility (CSR)

ONGC''s vision of sustainable growth drives both business decisions as well as Corporate Social Responsibility (CSR) initiatives. The CSR activities are essentially guided by project based approach in line with the guidelines issued by the Department of Public Enterprises (DPE) and Ministry of Corporate Affairs (MCA) of the Government of India. Seeking to herald an inclusive business paradigm, ONGC has CSR interventions that are based on social, environmental, and economic considerations and are well-integrated into the decision-making structures and processes of the organization.

The CSR effortsare primarily focused on protection of environment; providing infrastructure support in our operation al areas, water management, women empowerment, initiatives for physically and mentally challenged people, protection and preservation of our heritage, arts and culture, promotion of sports, entrepreneurship building and sponsorship of seminars, conferences, workshops etc.

During 2012-13, some of the landmark CSR initiatives undertaken by your Company include:

1. ONGC Specialist Palliative and Geriatric Care Out-patient Clinic: Initiated in 2012-13 in association with Dean Foundation, this project intends to help the terminally ill cancer patients in Chennai by providing palliative care. It supports patients by comforting them and relieving them of pain during the final stage of their life. It also provides counselling to the patients and their families. The targeted beneficiaries are selected by the implementing agency in association with various Medical centres providing oncological treatment based on their socio-economic criteria.

2. ONGC Hope Foundation: This CSR project was initiated with the intent to "Bandage the ulcers of 96 leprosy patients every day" for one year in the Village of Hope, (VOH). This is situated in the leprosy complex, Tahirpur, adjacent to Leprosy Mission Hospital at Nandnagri in the outskirts of Delhi.

3. ONGC The Akshaya Patra Foundation: This unique CSR initiative aims at setting up of a centralized fully automated mechanized kitchen with a capacity to provide mid-day meals to two lakh school going children (enrolled in Govt, schools) per day in the District of Surat, Gujarat. The Kitchen has already started feeding about75,000 students from an interim kitchen. Itwill become operational in phases and intends to reach its full capacity of two lakh children per day within two years.

4. Aantyodaya Prakalp: The project implemented through Bhartiya Kushtha Niwarak Sangh (BKNS) andAdivasi Development Initiative (ADI) aims to undertake eradication of malnutrition, especially among children. Itwill conduct sick cell disease detection, counseling and prevention, with appropriate treatment. Medical treatment will be provided through a resource centre/ hospital and surgical centre. The project will also provide education to 20 students from the tribal populations of Western & Eastern Melghat in the Amravati District of Maharashtra, Betul District of Madhya Pradesh and Bastar District of Chhattisgarh atHalbras.

5. Aids & Appliances to the physically challenged: This is a pan India project in collaboration with Artificial Limbs Manufacturing Corporation of India (ALIMCO). The objective is to cater the needs of Orthopaedic, Hearing and visually challenged people by providing aids and appliances. 750 people have already benefitted from this project in Hazira, Gujarat and Karaikal, Puducherry in 2012-13.

6. ONGC Adharshila Entrepreneurship and Skill Development Initiative: The CSR project initiated in 2012-13 aims at providing vocational training for 360 students. These students are from the slums of New Delhi. The training will be in the fields of beauty and healthcare, cutting and tailoring, and computer education.

7. Udaan: This is a special Initiative taken up by the Ministry of Home Affairs, Govt, of India for the educated youth of Jammu & Kashmir in association with National Skill Development Corporation (NSDC). The project aims to train Graduates/ Post Graduates from J&K to improve their technical knowledge and soft skills and enhance their scope for employability.

8. UTKARSH An ONGC AROH effort for Economic Upliftment of People in Sibasagar: The project aims to create sustainable livelihood opportunities through training and skill development. It targets different sections and age-groups in 18 villages in ONGC operational area in Geleki field.

9. Preservation of heritage monuments: Your Company has also dedicated itself towards preservation of Heritage Monuments. Six monuments - Taj Mahal at Agra, Red Fort at Delhi, Ellora & Eliphanta Caves in Maharashtra, Golkonda Fort at Hyderabad and Shore Temple in Mahabalipuram near Chennai - have been taken up under Clean India Campaign of Ministry of Tourism with the help of Archaeological Survey of India (ASI).

10. Other notable CSR Initiatives: Hortoki Water Supply Scheme (aimed at creating a sustainable source of safe drinking water to the people of Hortoki Village, Kolasib District, Mizoram); Assistance to St Joseph of Annecy (India) Society, Tripura (infrastructure support for residential hostel for tribal girls - St Joseph of Annecy (India) Society is running a residential hostel for more than 125 Tribal girls of Kamalpur Dhalia) and Support to Adoration Charitable Trust, Cochin (financial assistance to Cochin to cover educational & health expenses of 100 school children of sex workers/HIV/AIDS affected, drug users etc.) Tailoring machines and candle mould dice were provided to underprivileged women to provide livelihood to them.

In addition to the above new CSR initiatives undertaken in 2012-13, ONGC continued to support the major CSR interventions initiated in previous years. Some of the continued CSR initiatives are Varishtajana Swasthya Sewa Abhiyan (provision of healthcare support to elderly through Mobile Medicare units); ONGC-GICEIT Computer Centre (Employment-related computer training to underprivileged youth); Harit Moksha (green cremation systems to reduce wood consumption during traditional cremations) and ONGC-Eastern Swamp Deer Conservation Project in Kaziranga National Park.

25. Accolades

Consistent with the trend in preceding years your Company, its various operating units and its senior management officials have been recipients of various awards and recognitions. Details of such accolades are placed at Annexure - B.

26. Directors'' Responsibility Statement

Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956, with respect to Directors'' Responsibility Statement, it is hereby confirmed that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 3151 March, 2013 and of the profit of the Com pany for the year ended on that date;

(iii) The Directors have 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; and

(iv) The Directors have prepared the annual accounts of the Company on a''going concern'' basis.

27. Corporate Governance

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by the various stakeholders. The practices evolve around multi-layered checks and balances to ensure transparency.

In terms of Clause 49 of the Listing Agreement, a report on Corporate Governance for the year ended March 31,2013, supported by a certificate from the Company''s StatutoryAuditors confirming compliance of conditions, forms part of this Report.

Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance have been made mandatory from May, 2010. ONGC has implemented the DPE guidelines to the maximum extent possible.

Your Company has voluntarily got its Secretarial ComplianceAuditconductedforthefinancial year ended 31st March, 2013 from M/s A.N. Kukreja&Co., Company Secretaries in whole-time practice; their reportforms part of this Annual Report.

In line with global practices, your Company has made available all information, required by investors, on the Company''s corporate website www.onqcindia.com

Apart from the mandatory measures required to be implemented as a part of Corporate Governance, ONGC has gone the extra mile in this regard for the benefitof the stakeholders:

i. Whistle Blower Policy: A Whistle Blower Policy has been implemented and isfunctional from December 01,2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is applicable to all employeesof the Company and has been uploaded on the intranet of the Company.

ii. Annual Report on working of the Audit & Ethics Committee: With a view to apprise the Board of the working of the Audit & Ethics Committee annual report on the working of the Audit & Ethics Committee for FY''12 and FY''13 are under finalisation.

iii. MCA Voluntary Guidelines on Corporate Governance: ONGC has implemented the voluntary guidelines on Corporate Governance issued by Ministry of Corporate Affairs to the extent feasible and within the competency domain of the management.

iv. Enterprise-wide Risk Management (ERM) framework: Inline with the requirements of Clause 49 (of the Listing Agreement) your Company has developed a comprehensive Enterprise-wide Risk Management (ERM) framework. Under the framework Risk Register portfolio has been compiled and an ERM Policy has been firmed up. The Risk Register and the Risk Management policy of ONGC has been reviewed by the Audit and Ethics Committee and approved by the Board of Directors. The ERM framework has been rolled throughout the organization and the risk policy adopted by the company is being displayed at all the Assets/Basins/Plants/lnstitutes across all the locations of ONGC. The risk policy of ONGC is stated below:

"ONGC shall identify the possible risks associated with its business and commits itself to put in place a Risk Management Framework to address the risks involved on an ongoing basis to ensure achievement of the business objectives without any interruptions.

ONGC shall optimize the risks involved by managing their exposure and bringing them in line with the acceptable risk appetite of the company".

The risk reporting structure has already been putin place and all the stake holders are being trained to enumerate risks in their functional area. The Risk Management Cell is receiving reports from the various functional areas. The Risk Management Committee is reviewing the same on a periodical basis.

v. Board Charter: In line with the requirements of mandatory Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance a detailed charter of the Board has been firmed up. The same has been finalised by the Independent Directors and will be implemented shortly.

vi. Evaluation of Performance of the Board: A draft policy on evaluation of performance of the Board / Committees / Independent Directors is being drawn up.

vii. Lead Independent Director: Mr. Arun Ramanathan has been elected as the Lead Independent Director.

viii. Meeting of Independent Directors: The Independent Directors met three times during the FY 2012-13.

28. Statutory Disclosures

Section 274(1)(g) of the Companies Act, 1956, is not applicable to the Government Companies. Your Directors have made necessary disclosures, as required under various provisionsoftheAct and Clause 49 of the Listing Agreement.

Particulars of Employees

As per Notification No. GSR289(E) dated March 31,2011 issued by the Ministry of Corporate Affairs, amending the provisionsof the Companies (Particulars of Employees) Rules, 1975 issued in terms of Section 217(2A) of the Companies Act, 1956, it is not necessary for Government companies to include the particulars of employees drawing salaries ofRs. 6 million or more per annum, employed throughout the financial year or,Rs. 0.5 million per month, if employed for part of the financial year. As your company being a Governmentcompany, the information has not been included as a part of the Directors'' Report.

29. Energy Conservation

The information required under section 217(1 )(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is annexed as Annexure - ''C''.

30. Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s Mehra Goel & Co., M/s S. Bhandari &Co, M/s Ray & Ray, M/sVarma&Varmaand M/sG DApte&Co., Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2012-13. The Statutory Auditors have been paid a remuneration ofRs. 20.21 million (previous yearRs. 16.20 million) towards audit fee and certification of Corporate Governance Report.The above fees are exclusive of applicable service tax and reimbursement of reasonable travelling and out of pocket expenses actually incurred.

31. Auditors''Reporton the Accounts

The Comments of Comptroller & Auditor General of India (C&AG) form part of this Report as per Annexure-D. There is no qualification in the Auditors Report and there are no supplementary comments by C&AG under section 619(4) of the CompaniesAct, 1956. Notes to the Accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further comments.

You would be pleased to know that your Company has received Nil comments from C&AG and Statutory Auditors for the year 2012-13. This is the seventh time in a row that the organization has received Nil comments

32. CostAudit

Pursuant to the directions of the Central Government for audit of Cost Accounts, the proposal for appointment of 7 firms of Cost Accountants as CostAuditors for auditing the cost accounts of your Company for the year ended 31st March, 2013 was approved by the Central Government and they have accordingly been appointed. The CostAudit Report for the year 2011-12 has been filed underXBRLmodeforthefirsttimeon January 15,2013 i.e. within the due date of filing.

33. Directors

During the year under report, Shri A K Hazarika, ex-Director (Onshore) superannuated on September 30,2012. Shri PK Borthakur was appointed as Director (Offshore) on October 30,2012. Shri Shashi Shanker assumed charge as Director (T&FS) on December 01,2012 in place of Shri U N Bose who superannuated on November 30,2012. Smt. Sushama Nath resigned from the Board with effect from January 21,2013. Shri K NarasimhaMurthywas appointed as Non-official part-time Director (Independent Director) on March 21,2013. Shri N K Verma tookover as Director (Exploration) on April 01,2013 in placeof Shri SV Rao who super annuated on March 31,2013.

The Board places on record its deep appreciation for the excellent contributions made by Shri A K Hazarika, Shri U N Bose, Smt. Sushama Nath and Shri S V Rao.

The strength of the Board of Directors of ONGC as on AugustOI, 2013 is 14, comprising 6 Executive Directors (Functional Directors including CMD) and 8 Non-Executive Directors, two Government nominees and six Independent Directors. Ministry of Petroleum & Natural Gas has been requested to appointrequisite number of independent Directors to comply with the Listing Agreement.

Pursuant to the provisions of Section 255 and 256 of the CompaniesAct, 1956 and Clause 104(l) of the Articles of Association of the Company, Dr. D Chandrasekharam and Shri K S Jamestin retire by rotation atthe 20th Annual General Meeting (AGM) and being eligible, offer themselves for reappointment.

Shri P K Borthakur, Shri Shashi Shanker, Shri K Narasimha Murthy and Shri N K Verma who were appointed as Additional Directors after the last AGM, hold office up to the 20th AGM. The Company has received notice in writing from a member pursuant to the provisions of Section 257 of the CompaniesAct, 1956, proposing their candidature for appointment as Directors of the Company liable to retire by rotation.

34. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Statutory Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and members of the ONGC Family for their faith, trust and confidence reposed in ONGC.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

On behalf of the Board of Directors

(Sudhir Vasudeva)

Chairman and Managing Director

Place: New Delhi

Date: 12.08.2013

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Mar 31, 2012

The is indeed my proud privilege to present, on behalf of the Board of Directors, the 19th Annual Report on the business and operations of Oil And Natural Gas Corporation Ltd. and its Audited Statements of Accounts for the year ended 31st March, 2012, together with the Auditors' Report and Comments on the Accounts by the Comptroller & Auditor General (CAG) of India.

FY'12 has been a year of achievements for your Company as it performed exceedingly well in almost all the areas of its activities.

Significant highlights for the year have been: - Your Company accreted 84.13 mmtoe & ultimate reserves in the domestic fields (operated by ONGC), the highest in last two decades.

- Reserve replacement ratio has been 1.79; in 7th consecutive year more than 1. - The Gross Revenue (Rs. 7766,871 million) and PAT (Rs. 251,229 million) has been the highest-ever.

- ONGC paid the highest-ever dividend of Rs. 83,416 million; the Government of India's share has been Rs. 60,372 million. - ONGC's standalone Net worth crossed Rs. 1,000,000 million benchmark (Rs. 1,117,841 million as on 31.03.2012).

- Actual Plan expenditure for domestic operations during XI Plan period has been Rs. 1,205,523 million against the plan outlay of Rs. 759,638 million.

You will appreciate the fact that your company is growth driven which is reflected through its consistent performance over a long period of time despites growing complexities in the industry and global economies. Due to this consistent performance, efforts of your company are well recognised the word over.

Global recognitions

Your Company is the only Indian energy giant in "Fortune's Most Admired List 2012" under 'Mining, Crude Oil Production' category (March 2012). ONGC has been ranked as the Number 2 Exploration & Production Company in the World and 21st in the overall listing of global energy companies as per 'Platts Top 250 Global Energy Company Ranking 2011 (November, 2011). ONGC has been ranked at 171st position in Forbes Global 2000 list 2012 of world's biggest companies for 2011 (April 2012).

Physical Performance: 2011-12

Exploration

Your Company has made 23 discoveries in domestic fields (operated by ONGC); 15 new prospects and eight new pool discoveries. Out of the 15 new prospect discoveries 7 are in NELP blocks. The new prospect discoveries are- East Linch (Oil) and Uber (Gas) in Cambay basin; North Patheria (Gas) and Nohta-2 in Vindhyan Basin; GS-70 (Oil & gas). Alankari (Gas) aid Chandrika South (Gas) from Krishna Godavari offshore basin; B-127E (Oil) & BH-67 (Gas) in Mumbai Offshore basin. GK-42 (Gas) and GS-OSN-2004/1 (Gas) in Kutch offshore basin; MDW-13 (Gas) in the deepwater of Mahanadi offshore and ANDW-1 (Gas) in deepwater Andaman offshore. Hortoki discovery is the first hydrocarbon discovery in Mizoram. Outer 23 discoveries, 15 discoveries are in nomination blocks. Seven onland discoveries have already been put on production and other four discoveries in the offshore nomination blocks have the possibility of cluster development with nearby existing infrastructure. Two onland discoveries are in the process of appraisal/delineation. Total 8 discoveries (two onland and six offshore) are in NELP blocks which are governed by the PSC guidelines and appraisal/development activities will be taken upon keeping in view the time-lines of the respective blocks.

So far, your Company has made 26 discoveries in NELP blocks (up to 31st March, 2012). Out of which, DOC (Declaration of Commerciality) has already been submitted for 13 discoveries; including the Significant discoveries in KG-DWN-98/2 in KG basin and Mahanadi basin. Rest of the discoveries are under assessment/appraisal.

Reserve accretion & RRR

Your Company accreted 242.53 million metric tonnes of oil equivalent (mmtoe) of in-place volume of hydrocarbon in domestic basins (operated by ONGC). The ultimate reserves accretion has been 84.13 mmtoe. Total ultimate reserve accretion in domestic basins including ONGC's share in PSC JVs has been 85.44 mmtoe. This fiscal also your Company maintained Reserve Replacement Ratio (RRR) more than one with RRR of 1.79 (with 3P reserves).

Production of Oil and Gas

The combined production of oil and oil equivalent gas (O OEG) for ONGC, including OVL and ONGC's share in PSC-JVs. in FY'12 has been 61.18 mmtoe, marginally lower by 1.4% compared to the production in FY'11 (62.05 mmtoe). The major reason for lower production during FY'12 has been the unrest in Sudan, South Sudan and Syria fields and natural decline in domestic fields (operated by ONGC).

Out of total production of 33.13 MMT of crude oil, 71 % production came from the ONGC operated domestic fields. 19% from the overseas assets and balance 10% from ONGCs share in domestic joint ventures. As far as natural gas production is concerned, majority of production (83%) came from ONGC operated domestic fields and balance 9% from overseas assets and 8% from domestic joint ventures.

Production from overseas assets

ONGC Videsh Limited (OVL), the wholly owned subsidiary of your company, has ten producing assets in eight countries - Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2), Syria (1), Vietnam (1) and Russia (2). Total production from these assets during FY'12 has been 8.75 mmtoe of O OEG (Crude oil: 6.21 MMT & Gas: 2.54 BCM).

New projects

The Board of your Company approved development of two discovered fields i.e. B-127 cluster and C-26 cluster in FY'12, with an investment of Rs. 46,518 million. Besides this, phase-2 redevelopment of Heera and South Heera was also approved with an investment of Rs. 56,084 million. B-173A field has also been taken up for additional development with and investment of Rs. 3,525 million.

New sources of energy

Shale gas

After establishing the presence of Shale gas in the country in Durgapur, your Company is planning to explore for shale gas in the identified basins such as – Cambay, Krishna Godavari, Cauvery and Bengal basins. A landmark alliance has been linked with ConocoPhillip to explore for stale gas in India and abroad. Your Company has also entered into Shale gas research consortium agreement with Energy & Geoscience Institute (EGI), University of Utah. USA. At the same time a project has been sponsored in Indian School of Mines, Dhanbad for shale gas research.

Coal Bed Methane (CBM)

Your company is currently operating in four CBM blocks i.e., Jharia, Bokaro, North Karanpura and Raniganj. In all Blocks, Phase-l activities have been completed. In two blocks i.e., Bokaro and North Karanpura, Development Plan has been submitted after completion of Phase-II activities Development Plan of Bokaro block has been approved in February, 2012, while approval for the development plan of North Karnapura block is awaited. In remaining two blocks i.e. Jharia and Raniganj, Phase-II activities are nearing completion and development plans will be submitted. Your Company is also looking for farm-in opportunities for expeditious exploration of the CBM resources.

Underground Coal Gasification(UCG)

Your company has selected Vastan Mine block in Sural district, Gujarat for UCG Pilot project. Environmental clearance for the project has been obtained from Ministry of Environment and Forest, Government of India and request has been submitted to Ministry of Coal for award of mining lease which is awaited.

Alternate sources of energy

Your Company, through ONGC Energy Centre (OEC), a trust set up by your Company, is actively pursuing alternate energy opportunities. The Energy Centre is poised to contribute significantly towards your Company endeavours to have a healthy portfolio of alternate energy, Some of the significant initiatives in this regard are:

- Generation of hydrogen through Thermo-chemical processes: First phase of work on Cu-Cl (Copper-Chlorine) cycle has been successfully completed and the second stage i.e. Laboratory Scale Closed Loop studies of Cu-Cl is being pursued with Institute of Chemical Technology (ICT), Mumbai.

- Geothermal Power Project in Cambay Basin: OEC has planned a pilot scale Geothermal Pilot Project in Cambay Basin, which has high geothermal gradient. M/s. Talboom, Belgium will be the technology partner in this project. Through this collaborative project OEC aims to explore the possibilities of harnessing Geothermal Energy in Sedimentary Basins of India.

- Kinetic Hydro Power Project: ONGC Energy Centre has entered into an agreement with M/s. Natural Power Concepts (NPC), Hawaii, USA for the project on "Kinetic Hydro Power Generation in Rivers/Water Channels/Tail Races of Dams'.

- Wind Power Generation Project at Offshore Installations: Your company has already installed wind energy farm of 51 MW and another 102 MW wind farm project is under progress. As your Company has vast experience in offshore and has more than 200 offshore installation for production of oil & gas, the possibility of installation of suitable wind generation facilities at these Installations is being explored for harnessing wind energy in offshore.

- Uranium exploration: Your Company has successfully completed two parametric wells for Uranium exploration in Tamil Nadu.

Disinvestment

One of the major highlights of the year that passed was that the Govt. of India divested 420,416,170 number of equity shares (4.91%) of ONGC on 1st March, 2012 using the "offer for sale through Stock Exchange Mechanism". With this, the Govt. holding of ONGC has come down from 74.14% to 69.23%, In the process Govt. has raised a sum of Rs. 127,668 million resulting in an average price of Rs. 303.67 per share against the floor price of Rs. 290 per share. LIC came out as the latest buyer acquiring 377,107,488 no. of shares (4,408% out of the total divestment of 4.91% of the paid up share capital of ONGC) raising its total holding to 810,617,088 shares (9.475% as on 1st March, 2012).

1. Financial Results

Despite volatile markets your Company has earned a profit After Tax (PAT) of Rs. 251,229 million (Rs. 189,240 million in 2010-11), up 32.76%, which is incidentally the highest-ever. During the year under review, your Company, on standalone basis, registered Gross revenue of Rs. 768.488 million in 2010-11), up 12.00%.

Highlights

Gross Revenue : Rs. 768,871 million

Profit After Tax (PAT) : Rs. 251,229 million

Contribution to Exchequer : Rs. 382,874 million*

Return on Capital Employed : 45.15%

Debt-Equity Ratio : 0.00

Earnings Per Share (Rs.) : 29.36 Book Value Per Share (Rs.) : 131

* OID Cess, Excise duty, Royalty, Corporate and Dividend Distribution Tax, sales tax/VAT and Dividend on Government shareholding.

(Rs. in million)

Particulars 2011-12 2010-11

Revenue from Operations 768,871 686,488

Other Income 44,529 34,069

Total Revenues 813,400 720,557

Profit before Interest Depreciation & Tax (PBIDT) 410,327 353,182

Profit before tax (PBT) 366,425 276,164

Profit After Tax (PAT) 251,229 189,240

Appropriations

Interim Dividend 66,305 68,444

Proposed Final Dividend 17,111 6,417

Tax on Dividend 13,286 12,156

Transfer to General Reserve 154,527 102,223

Total 251,229 189,240

Previous year figures have been regrouped wherever necessary.

2. Dividend:

Your Company paid interim dividends amounting to a total of Rs. 7.75 per share of Rs. 5 each (155%) in two phases (Rs.6.25 and Rs. 1.50) in January and March 2011, respectively. The Board of Directors has recommended a final dividend of Rs. 2 per share (40%). This makes the aggregate dividend at Rs. 975 per share of Rs. 5 each i.e. 195% of the paid up share capital - post split and bonus, as compared to 175% paid In 2010-11 The total dividend will absorb Rs. 83,416 million, besides Rs. 13,286 million as tax on dividend which is the highest ever dividend payout by the Company.

3. Management Discussion and Analysis Report

In terms of Clause 49(IV)(F) of the Listing Agreement with the Stock Exchanges, a Management Discussion and Analysis Report has been included and forms part of the Annual Report of the Company

4. Production and Sales

Highlights of Productions and sales of Crude Oil, Natural Gas and Value-added products.

Unit Production Qty Sales Qty FY FY FY FY 2011-12 2010-11 2011-12 2010-11

Direct

Crude Oil (MMT) *26.93 27.28 23.08 22.93

Natural Gas (BCM) **25.51 25.32 20.17 20.25

Ethane/Propane 000 MT 463 388 461 387

LPG 000 MT 1,037 1,054 1,033 1,057 Naphtha 000 MT 1,557 1,570 1,557 1,600

SKO 000 MT 79 116 79 118

Others

Sub Total

Trading

Motor Spirit 000 KL 0.43 0.63

HSD 000 KL 0.07 3.27

Others

Sub Total

Total



Unit Value (Rs. in million) FY FY 2011-12 2010-11

Direct

Crude Oil (MMT) 507,873 448,645

Natural Gas (BCM) 141,396 127,544

Ethane/Propane 000 MT 12,741 8,796

LPG 000 MT 23,711 16,369 Naphtha 000 MT 72,167 56,342

SKO 000 MT 1,520 679

Others 1,850 1,002

Sub Total 761,258 661,377

Trading

Motor Spirit 000 KL 30 36

HSD 000 KL 3 134

Others 0 2

Sub Total 33 172

Total 761,291 661,549

* includes 3.21 MMT (Previous year 2.86 MMT) from Joint Ventures.

** includes 2.19 BCM (Previous year 2.23 BCM) from Joint Ventures.

5. Oil & Gas Reserves

Your Company has made voluntary disclosures m respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69). ONGC has added 242.50 MTOE of oil and oil-equivalent gas (O OEG) initial in-place volume with 84.13 MTOE of O OEG as the ultimate reserve component during FY'12 in domestic fields (operated by ONGC).

The ultimate reserve accretion, inducing its share in joint ventures is 85.44 MTOE of O OEG, which is the highest in last two decades.

Ultimate Reserve (3P) accretion O OEG (in MTOE)

Year Domestic ONGC's Total OVL's Total Assets share in Domestic share in (1) Domestic Reserve Foreign JVs (2) (3)=(1) (2) Assets (5)=(3) (4) (4)

2008-09 68.90 2.82 71.72 135.08 206.80

2009-10 82.98 4.39 87.37 0.35 87.72

2010-11 83.56 0.29 83.85 46.23 130.08 2011-12 84.13 1.31 85.44 -0.31 85.13

6. Statement of Reserve Recognition Accounting

The concept of Reserve Recognition Accounting attempts to recognize income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are so disclose with complete set of annual financial statements, the following supplemental information:

a) Proved Oil and Gas reserve quantities

b) Capitalized costs relating to Oil and Gas producing activities

c) Cost incurred for properly acquisition, exploration and development activities

d) Results of operations for Oil and Gas producing activities

e) A standardized measure of discounted future net cash flows relating to proved Oil and Gas reserve quantities

Your Company has disclosed information in respect of (a) and (d) above in the Annual Financial Statements.

Your Company has made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserve at Annexure-A to this report as Statement of Reserve Recognition Accounting (RRA).

7. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards (AS-1 to AS-29) and Successful Efforts Method as per the Guidance Note on Accounting for Oil & Gas Producing Activities issued by The Institute of Chartered Accountants of India (ICAI) and provisions of the Companies Act, 1956. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared under the Revised Schedule VI format of the Companies Act, 1956.

8. Internal Control System

Your Company has well established and efficient internal control system and procedures. The Company has a well defined delegation of the financial powers to its various executives through Book of Delegated Powers (BDP). The Integrated BDP is updated from time-to-time in line with the needs of the organisation as well as to bring further delegation. The Company has in-house Internal Audit Department commensurate with its size of operations. Audit observations are periodically reviewed by the Audit & Ethics Committee of the Board and necessary directions are issued wherever required.

9. Subsidiaries

9.1 ONGC Videsh Ltd. (OVL)

OVL, the wholly-owned subsidiary of your Company for E&P activities outside India, achieved the highest-ever total revenue of Rs. 226,374 Million for the financial year (FY) 2011-12, an increase of 21.2% as compared to the total revenue of Rs. 186,711 Million for the FY 2010-11. OVL's share in production of oil and oil equivalent gas (O OEG) together with its wholly-owned subsidiaries ONGC Nile Ganga B.V., ONGC Amazon Alaknanda Limited and Jarpeno Limited was 8.753 MTOE during the FY 2011-12 as compared to 9.448 MTOE during the FY 2010-11. The Production has decreased in FY 2011-12 mainly due to geopolitical problems in Sudan and Syria. Post secession of South Sudan from Sudan w.e.f. 9th July, 2011, Blocks 1, 2 and 4 straddle between the two countries and Stock 5A is now entirely in South Sudan. Company's operations in South Sudan are temporarily under shutdown with effect from 23rd January, 2012 because of non-resolution of various issues between the Governments of South Sudan and Sudan for use of processing, transportation and port facilities in Sudan for crude oil produced in South Sudan Also, the current geo-political situation in Syria including EU sanction and the resulting restrictions on Contractors has created a difficult situation in AI Furat Petroleum Company (AFPC) project since December 2011. Excluding Syria and Sudan, the production during FY 2011-12 was almost at the level as that of FY 2010-11.

The Profit after tax (PAT) (or the FY 2011 -12 was marginally up by 1.1% from Rs. 26,905 Million during the FY 2010-11 to Rs. 27,212 Million during the FY 2011-12 mainly due to a provision made for Impairment of Rs. 19,534 Million in respect of subsidiary, Jarpeno Ltd. as the 'Value In use' computed for the asset as on 31st March, 2012 was lower than its carrying value. During the year, the company has acquired 25% Participating Interest (PI) In Satpayev Block, Kazakhstan and the exploration activities have started in the block. The remaining 75% PI is held by KMG, the National Oil Company of Kazakhstan.

ONGC Videsh presently has participation in 30 projects in 15 countries. Out of 30 projects, OVL is operator in nine projects and joint operator in six projects. The producing projects in OVL are Greater Nile Oil Project in Sudan, Greater Pioneer Operating Company and Block 5A in South Sudan, Block 06.1 in Veitnam, AI Furat Project in Syria, Sakhalin-I Project and imperial Energy in Russia, Mansarovar Energy Project in Colombia, San Cristobal Project in Venezuela and Block BC-10 in Brazil. Exploration Block XXIV. Syria is on extended production testing. OVL currently has three projects under development namely Carabobo 1, in Venezuela, where first oil is expected in December 2012 and Blocks A1 & A3 in Myanmar, which are likely to commence production in May 2013. Farsi Block, Iran has discoveries and further work is being earned out. One Pipeline Project was executed and completed by OVL and handed over to Government of Sudan in October, 2005 and is currently under lease. The remaining projects are in exploration phase.

Direct Subsidiaries of ONGC Videsh Limited:

a) ONGC Nila Ganga B.V. (ONGBV):

ONGBV, a subsidiary of OVL, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25% Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 1.324 MMT during 2011-12. Post secession of South Sudan from Republic of Sudan effective from 9th July 2011, about 60% of fields are in South Sudan. However, major processing facilities, pipeline and port facilities are in Republic of Sudan. A new Joint Operating Company (JOC) Greater Pioneer Operating Company (GPOC) has been registered in Mauritius for petroleum operations of Block 1, 2 & 4 in Republic of South Sudan. The shareholding of ONGBV in GPOC is 25% in accordance with PI and project is jointly operated by all partners.

ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in AI Furat Project (AFPC), Syria with its share of oil and gas production of about 0.503 MTOE during 2011-12 ONGBV holds 40% PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil production of about 0.894 MMT during 2011-12 ONGBV holds 15% PI in BC-10 project Brazil through its wholly owned subsidiary ONGC Campos Ltd. with its share of oil and gas production of about 0.465 MTOE during 2011-12.

b) ONGC Narmada Limited (ONL)

ONL, a wholly-owned subsidiary of OVL held 13.5% PI in deep water exploration Block-2, Nigeria-Sao Tome & Principe. Joint Development Zone (JDZ). OVL has communicated its intention of not continuing the block to the Operator and Joint Development Authority (JDA) of Joint Development Zone Nigeria-Sao Tome & Principe as the development of the project is not commercially viable.

C) ONGC Amazon Alaknanda Limited (OAAL): OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China During 2011-12, OVL's share of oil production in MECL was about 0.561 MMT.

d) Jarpeno Limited:

Jarpeno Limited, a wholly-owned subsidiary of OVL incorporated in Cyprus, acquired Imperial Energy Corporation plc., a UK listed upstream oil exploration and production entity with its main activities in Tomsk region of Western Siberia in Russia, in January 2009. During 2011-12, Imperial Energy’s oil production was about 0.771 MMT.

e) Carabobo One AB:

Carabobo One AB, a wholly-owned subsidiary of OVL Incorporated in Sweden, holds 11% PI in Carabobo-I Project, Venezuela, The upstream production facilities are expected to produce about 400,0Q0 barrels per day of which approximately 200,000 barrels per day would be upgraded into light crude oil in a facility to be located in the Soledad area. Anzoategui state. The license term is for 25 years with the potential for a further extension of 15 years. Four stratigraphic wells and six slant wells were drilled for collection of samples and study of petro physical properties for drilling development wells was carried out for Accelerated Early Production of first oil in 4th quarter of 2012. Presently, Basic Engineering & feed for Upgrader and Downstream facilities and 3D-Seismic study, civil works for well pads have been awarded and awarding of drilling contract for Development of the Field is in progress.

Joint Venture of OVL

f) ONGC Mittal Energy Limited (OMEL)

OVL along with Mittal Investments Sari (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS holds 98% equity shares of OMEL, in the ratio of 51 (OVL):49(MIS) with balance 2% shares held by SBI Capital Markets Ltd, OMEL held 45.5% PI In exploration block OPL 279, Nigeria and holds 64.33% PI in exploration Block OPL 285, Nigeria. OMEL also holds 1.11% of the issued share capital of ONGBV by way of Classic shares issued by ONGBV exclusively for AFPC Syrian Assets; such investment being financed by Class-C Preference Shares issued by OMEL in the ratio of 51:49 to OVL and MIS respectively.

9.2 Mangalore Refinery & Petrochemicals Limited (MRPL)

Your Company continues to hold 71.62% equity stake in MRPL, a Category I Mini Ratna, which is single location 15 MMTPA Refinery at the west coast.

Performance Highlights of FY 2011 -12;

- GRM of 7.07$/bbl in the fourth quarter despite sleep Rupee depreciation at the end of the quarter.

- Highest ever throughput of 12.82 MMTPA and turnover of Rs. 572,068 million during FY 2011-12. - Commissioned its 3 MMTPA CDU/VDU on 25.3.2012, which enhanced its nameplate capacity from 11.86 MMTPA to 15 MMTPA.

- Revamp of CDU/VDU I and Hydrocracker successfully completed in record time. Revamp of HCU II completed in April-May 2012.

- OPE Adjudged performance as compared to MoU targets as Excellent for the year 2010-11.

FY

Particulars 2011-12 2010-11 Throughput (MMT) 12.82 12.84

Gross Turnover (Rs. in million) 572,068 437,237

GRM ($/bbl) 5.60 5.90

Net Exchange Variation (gain/loss) (Rs. in million) 6,490 (18) PBT (Rs. in million) 13,202 17,371

PAT (Rs. in million) 9,084 11,766



The Board of directors considering the performance and continuing projects expenditure during the FY 2012-13 recommends a dividend of Rs. 1.00 Per equity share of Rs. 10/- each (Previous year Rs. 10/- each). Marketing:

In spite of the continued under-recoveries in retail marketing of Auto fuels, the Company has continued with its significant performance, thereby, limiting the under recoveries, The Direct Marketing sales turnover covering Bitumen/CRMB, ATF, Furnace Oil, Mixed Xylene, Naphtha and Sulphur amounts to Rs. 27,550 million as compared to Rs. 22.910 million during 2010-11, thereby registering an increase of 20% over last year. The Company is in all readiness to take up within a short time the retail marketing if under recoveries are eliminated. Phase-III Refinery Project:

The Financial Year 2011-12 has been a significant year for Phase-III expansion of refinery. In spite of sporadic adverse working conditions in and around the project site, the overall project progress is extremely good. The overall project progress as on 15th May, 2012 is 94.70%.

MRPL has commissioned the Primary Crude Processing Unit, Crude Distillation & Vacuum Distillation Unit along with the required offsite facilities on 25-03-2012. The other units, Diesel Hydrotreater and Hydrogen, are under commissioning. The balance units are scheduled for commissioning progressively from June 2012 and last of the units is expected to be completed by October 2012. The Poly Propylene Unit is expected to be completed by December 2012. The SPM facility is scheduled to be commissioned by July 2012. The first phase of Captive Power Plant being built by M/s. BHEL which was scheduled for commissioning in April 2011 is now expected to be commissioned by September 2012. This has considerably affected the commissioning schedule of units.

10. Exemption in respect of Annual Report of Subsidiaries and Consolidated Financial Statement

MCA vide circular dated 08.02.2011 and clarification dated 21.02.2011 decided to grant a general exemption from the applicability of Section 212 of the Companies Act, 1956 from attaching the Balance Sheet and Profit & Loss Account prepared regarding the financial year ending on or after 31.03.2011, in rotation to subsidiaries of those companies which fulfill various conditions including inter-alia approval of the Board of Directors for not attaching the balance sheet and profit & loss account of the subsidiary concerned. Your Board has accorded necessary approval in this regard for not attaching the Balance Sheet and Profit & Loss Account of its subsidiaries (i) ONGC Videsh Limited (OVL) and (ii) Mangalore Refinery & Petrochemical Ltd. (MRPL). All the conditions mentioned in the circular are being complied with by ONGC. Full Annual Report of ONGC including its subsidiaries will be made available to any shareholder, if he/she desires. Further, Annual Reports of MRPL and OVL are also available on website www.mrpl.co.in and www.ongcvidesh.com respectively.

In accordance with the Accounting Standard (AS)-21 on "Consolidated Financial Statements" read with AS-23 on "Accounting for Investments in Associates' and AS-27 on "Financial Reporting of Interests in Joint Ventures", audited Consolidated Financial Statements for the year ended 31st March, 2012 of the Company and its subsidiaries form part of the Annual Report.

11. Joint Ventures/Associates

i. ONGC Tripura Power Company limited (OTPC)

Your company has promoted OTPC with envisaged equity stake of 50% along with Govt. of Tripura (0.5%) and IL&FS (26%) to set-up 726.6 MW (2 x 363.3 MW) gas based Combined Cycle Power Plant (CCPP) at Palatana in Tripura to monetize its idle gas assets in Tripura. The generation project is in the advanced stage of implementation by Bharat Heavy Electricals Limited, as the turnkey EPC contractor. The financial closure of the project has been achieved and various linkages like gas supply from ONGC and power off-take by NE states have already been tied up. The company has successfully accomplished, riding on the back of a breakthrough transport agreement with the Government of Bangladesh, the highly challenging task of transporting the heavy and over dimensional project equipment to the site through multi-modal transportation route through Bangladesh. In view of the enormous challenges involved in setting up the project at such a remote location, the project timelines have been revised. The commissioning of Unit-I is expected in August 2012, and that of Unit II in December 2012. The total approved cost of the project is Rs. 34,290 million and the financial progress in terms of expenditure incurred till 30th April 2012 is Rs. 23,210 million.

ii. ONGC Petro-additions Limited (OPaL)

Your Company has promoted a JV company OPaL with envisaged equity stake of 26% along with GAIL (15%) and Gujarat State Petroleum Corporation Ltd (GSPCL) (5%) to Implement a mega petrochemical complex comprising 1.1 MMTPA ethylene Cracker and global scale polymer units within Dahej SEZ, as a step towards downstream integration at a total revised cost of Rs. 213,960 million. Project Implementation is in full swing with 95% of contracts awarded and overall progress of the project is 53.2% as on 30th April, 2012.

iii. Mangalore Special Economic Zone Limited (MSEZ)

ONGC with envisaged equity stake of 26% in MSEZ along with KIADB (23%) and IL & FS KCCI (51%) is promoting an SEZ in coastal Mangalore. Ministry of Commerce & Industry has formally notified to set up a Petro-chemical Specific SEZ in 1830 acres of land. Total land in possessions 2323 acres which includes 1543 acres of land for MSEZ and other Domestic Tariff Area(DTA) land for Resettlement & Rehabilitation (R&R) for MRPL etc. MSEZ has already allotted land to OMPL and lease agreement for 441 acres signed. Commercial terms have also been finalized with ISPRL for land. Infrastructure development for river water conveyance, water treatment plants, corridor development, power supply etc. is in progress. Development of R& R colony is undergoing with allotment of 931 pots to Project Displaced Family (PDF) out of total 951 plots planned. Other R&R package is also under implementation. The company has started earning operating revenue from FY 2011-12 with revenue of Rs. 1.90 million.

iv. ONGC Mangalore Petrochemicals Limited (OMPL)

ONGC has promoted OMPL with envisaged equity participation of 46%. along with MRPL (3%) for setting up manufacturing facilities for 0.92 MMTPA Para-Xylene and 0.270 MMTPA Benzene from MRPL's aromatic streams in Mangalore SEZ, as a value added project Around 97% of the project cost has been awarded which includes I major contracts relating to project management, technology licensor and LSTK contract for process packages etc.The project Implementation is in full swing. The total approved cost of the project is Rs. 57,500 million and total expenditure is Rs.25.920 million, till 30th April, 2012.

v. ONGC TERI Biotech Limited (OTBL)

OTBL is a Joint Venture company of ONGC, incorporated on 26th March, 2007, with The Energy Research Institute (TERI) with shareholding of 49% each and balance 2% equity held by the Financial Institution. The J V has been promoted for addressing the requirement of Bioremediation of oily sludge. Microbial Enhanced Oil Recovery, prevention of wax deposition in tubular and solution for other oil field problems. The turnover of OTBL in FY 2011-12 is Rs. 129 .96 million and Profit after Tax is Rs. 32.78 million as against turnover of Rs. 129 .54 million and PAT of Rs. 27.48 million in FY 2010-11.

vi. Petronet MHB Limited (PMHBL)

PMHBL is a JV company of ONGC (28.766%). HPCL (28.766%) and PIL (7.898%). Balance 34.57% of equity is held by the leading banks. It owns and operates a multi-product pipeline to transport MRPL's products to hinterland of Karnataka. Throughput in FY 2011-12 is 2.771 MMT against total throughput of 2.576 MMT last year. As per un-audited results for the year 2011-2012,the turnover and PAT of PMHBL are Rs. 8,602 million and Rs. 3.650 million respectively.

vii. Petronet LNG Limited (PLL)

Your company has 12.5% equity staked PIL, identical to similar stake by other Oil PSU co-promoters viz., IOCL. GAIL and BPCL.Dahej LNG terminal of PLL which was expended to 10 MMTPA capacities in June 2009 is currently meeting around 20% of the total gas demand of the country. A new LNG terminal of capacity 5 MMTPA is under construction at Kochi and is expected to be completed by 2nd quarter of FY 2012. The turnover of PLL during 2011-12 is Rs.226,959 million(previous year Rs.131.973 million) and net profit Rs. 10,575million).

viii. Dahej SEZ Limited (DSL)

Your Company with envisaged equity stake of 23 % along with Gujarat Industrial Development Corporation (26%), is developing a multi-product SEZ at Dahej in coastal Gujarat. Dahej SEZ covers the total land area of 1732 Hectares where in 1717 Hectares is processing area and 15 Hectares is non-processing area. 90% of the leasable land has already been alloted to 65 units and 13 units have already started export from the SEZ. The SEZ is operational audits turnover during FY 11-12 is Rs.484 million and profit after tax is Rs.198 million against the turnover of Rs.651 million in FY 10-11 and profit after tax of Rs.412 million.

ix. Pawan Hans Helicopters Limited (PHHL)

ONGC has 49% equity stake in PHHL, Balance 51% equity is held by the Government of India. PHHL is one of Asia's largest helicopter operators with a well balanced operational fleet of 40 helicopters. it provides helicopter support for ONGC's offshore operations. PHHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC.

The accounts of PHHL for 2011 -12 are under finalisation.

12. Other Projects/Business initiatives

C2-C3-C4 Extraction Plant;

Your company has set up a C2-C3-C4 Extraction Plant at Dahej with LNG from PLL as feed stock. Commissioning of the Plant would be taken up after allocation of domestic gas for swap and resolution of taxation issue for which your company is actively pursuing with MoP&NG and Central Board of Excise & Customs (CBEC)/Department of Revenue respectively. Presently, the plant systems are under preservation and periodic inspection of static & rotary equipments is continuing as per Preservation Plan.

Partnerships for growth

ONGC signs path breaking MOU with Conoco Phillips

A Memorandum of Understanding was linked between ONGC and US oil major M/s Conoco Phillips on 30th March, 2012. The inking of the MOU is envisaged to go a long way in cooperation between two companies in the areas of shale gas exploration in India, USA and elsewhere in ova world; and Deepwater in India. Sharing of data and transfer of technology would help this competitive technological partnership for mutual benefit of the two organizations in times to come.

ONGC signs MOU with CNPC for cooperation in hydrocarbon sector

ONGC signed a MoU with China National Petroleum Corporation (CNPC) on 18th June, 2012 at New Delhi, (or cooperation in hydrocarbon sector. As per MOU, ONGC and CNPC intend to promote their cooperation and coordination in the existing petroleum projects in the midstream and downstream sectors in India. China and abroad.

ONGC signs MOU with SCCL

ONGC and Singareni Collieries Company Limited (SCCL) inKed an MoU for cooperation in the areas of service, operation, process development and research related to Underground Coal Gasification (UCG). Surface Coal Gasification (SCG) and Coal Bed Methane(CBM)on 18th July,2011 at New Delhi.

SCCL has indicated readiness to provide requisite coal linkage with due approval of the Ministry of Coal (MoC). The MOU aims at promoting clean coal technology to utilize high ash content indigenous coal in an environment friendly manner.

13. Information Technology

Project ICE

1. For pro-active management of enterprise-wide IT Infrastructure, state-of-the-art NOC (Network Operations Centre) has been established in Delhi at a cost of Rs.177.7 million As a part of this initiative, the IT processes have also been standardized as per Industry best practices for IT Service Management in the organization leading to accreditation of ISO 2000 Certification for six IT Maintenance Service locations at Mumbai and Delhi.

2. Enterprise-wide e-mail system has been upgraded with architectural and storage enhancements for improved performance and manageability at a cost of Rs. 109.3 million The license capacity has also been expanded to 30,000 client licenses to provide access to all ONGC employees. This has enabled providing official e-mail facilities to all employees of ONGC with functionalities at par with industry best practices. The upgraded e-mail system also features large mail-boxes and collaborative platform for push mail facility through smart phones mobile devices, instant messaging, file & profile sharing and audio and video conferencing.

3. In order to identify network bottlenecks and upgrade IT infrastructure to make the network future ready, services of consultant is being hired. The gaps identified shall be bridged through appropriate up gradation/enhancement projects. Presently the case is under Tendering process.

4. Under IT-Ready people initiative, an 'End-user PC Training' Project christened as "IT Chethana" has been undertaken at a cost of Rs.5.5 million. The Project aims to enhance the IT skill and proficiency of all employees across the organization through training interventions over a period of three years through the rate contract

5. ONGC has always been a pioneer in adopting state-of-the-art contemporary technologies. In this direction, WiMax based Broadband Communication has been another technology initiative to provide communication facilities to remote installations in Gujarat and Mumbai Offshore which has been inducted at a cost of Rs.247.8 million. This will provide connectivity at the remote installations and fields similar to our offices enabling faster collaborative working.

6. Based on the experience gained from the above initiative, another Wimax Broadband communication project for similar technology presence across ONGC has been planned for North East and South Region at an estimated cost of Rs. 340 million. The project is in final stage of award.

7. To have a captive VC network, 22 Nos. of HD (High Definition) Video Conferencing Systems have been installed at 18 locations at a cost of Rs. 62 million.

8. The augmentation of VATMS System at Mumbai Offshore has been completed at a cost of Rs. 28.6 million.

9. For security surveillance 33 Nos of CCTV camera with recording facilities have been installed at various residential colonies of Mumbai Region at a cost of Rs. 2.23 million.

14. Health, Safety & Environment (HSE)

Safety, occupational heath and protection of environment in and around its working area are prime concerns of ONGC. Your Company has implemented globally recognized QHSE management systems conforming to requirements of ISO 9001, OHSAS 18001 and ISO 14001 at ONGC facilities and certified by reputed certification agencies at ail its operational units. Corporate guidelines on incident reporting, investigation and monitoring of recommendations was developed and Implemented for maintaining uniformity throughout the organization in line with international practice. During 2011-12. the following were the highlights of HSE

- 20% reduction in incidents

- 131 environmental clearance (EC/TOR) obtained

- 4 Lakh Ringal Bamboo Planted in Upper Himalayas

- 25000 MT of oily waste treated using Bioremediation

- 412 installations certified with QHSE

- 240 operational units audited for HSE Performance

- 130 employees trained on HUET

- 14 HSE awareness programs completed

- Contractor Safety workshop at Ahmedabad on 4th August, 2011 with the theme "Zero injury Goal (ZIG) a Zero Accident Goal (ZAG)" in guest to reduce the accidents which predominantly involved contractual employees.)

- Following new training programmes have been introduced;

1. Effective implementation of PTW

2. SSSV-Theory and practices. Failure, Remedies and SCP

3. Control of work practices for offshore going personnel

4. Radioactive safety in logging operation.

- The implementation status of the amended OISD standards 116 & 117 was reviewed by Hon'ble Minister. MoPNG on 13th January 2012 & further on 16th February 2012 by Secretary, MoPNG.

- Corporate Disaster Management Pan (COMP) and guidelines have been developed for uniform disaster management all across ONGC. Your Company has also developed Occupational Health Physical Fitness criteria for employees deployed for offshore operations. Occupational Health (OH) module has now been populated on SAP system.

15. Sustainability Development

Department of Public Enterprises. Government of India has issued "Guidelines on Sustainable Development (SO) for the Central Public Sector Enterprises' (CPSE's)" on 23th September, 2011 for implementation with immediate effect by CPSEs. From the year 2010-11. the Department of Public Enterprises (DPE) has also included Sustainable Development (SD) as a compulsory evaluation parameters for CPSEs under "Non-Financial Parameters” having 5% weight age in the MOU for CPSEs. Further each CPSE is required to form a Board level designated committee on Sustainable Development headed by an Independent Director as its Chairman to approve Sustainable Development (SO) Plan and oversee the Sustainable Development performance. Keeping in view that ONGC already has a Board committee on Health. Safety ^Environment (HSE), the HSE committee has been re- designated as 'Committee on HSE and Sustainable Development". The terms of reference of the re-designated HSE & Sustainable Development Committee remain the same as mat of the existing HSE committee, with the addition of the SD related role as stated in the mandatory DPE guidelines.

As a part of the Sustainability Development the following efforts have been undertaken by ONGC

(i) Water Management

- Water Foot printing of 2 Assets

- Rainwater Harvesting at4 locations

(ii) Global Methane initiative

- Fugitive methane leak survey of production installation at 2 Assets

(iii) Carbon Management

- Carbon foot-printing & identification of GHG mitigation opportunities & development of viable CDM projects. Details of these measures are given under Energy Conservation.

ONGC Corporate Sustainability Report

- The second "Corporate Sustainability Report" of ONGC was adopted on 14th December, 2011. This report covers the sustainability performance i.e. organizational performance across the economic, environmental and social dimensions for the period 2010-11.

- The report; externally assured GRI-G3 based "A" level report, has been assured against Account Ability's AA1000 Assurance Standard 20G8 (AA1000AS 2008) by Emst & Young.

- This reporting is an improvement over 2010 Corporate Sustainability Report which was at "B" level.

16. Energy Conservation

a. Gas Flaring:

Gas flaring in Onshore Assets Has gradually been reduced from 555 MMSCM in 20O1-O2 to 116 MMSCM in 2011-12 by taking various measures like creating necessary Infrastructure 1.e pipelines, compressors etc, direct marketing of isolated low volume and low pressure gas and adopting innovative measures as GTW (Gas to wire). Considering 2001-02 as the base year, these measures have resulted in meaningful utilization of 439 MMSCM of gas in 2011-12 alone.

b. Clean Development Mechanism:

During the year 2011-12. two CDM projects titled "Green Building at Mumbai" and "Green Building at Dehradun" were accorded host country approval by me Designated National Authority. MoEF. Four CDM projects have been validated during this year with annual accruable CERs of 59278. ONGC tally of registered CDM projects as of now stands at six. Annual CERs accruable from these projects are 209460.

Four previously registered CDM projects have been successfully verified during 2011-12. Issuance of 4439 CERs from the first project has been effected n February 2012. The total issued CERs are now around 15000. Issuance of CERs from the other three projects is expected soon With all the expected issuance in place, the total issued CERs would be approx 160.000.

c. Carbon Foot-printing:

An organization wide carbon footprint activity has been initiated in the year 2011-12 as a part of carbon and energy management The aim is to map the GHG emission of all the facilities across ONGC and identify the possible GHG mitigation and opportunities through technical intervention.

d. Carbon Disclosure Project(CDP):

ONGC has taken part in the global initiative on Carbon Disclosure Project (CDP 9) last year. ONGC has been participating in Carbon Disclosure Project since the last five years (since CDP 7). The CDP. launched at London In December 2000 represents an efficient process where by many institutional investors collectively sign a single global request for disclosure of information on GHG emission. The CDP provides the secretariat for the world's largest institutional investor collaboration on the business implications of climate change, covering a large cross section of industry across the world. The CII -ITC Centre of excellence for Sustainable development has spearheaded the movement in India and the CDP in India has been launched In May 2007.By joining the project ONGC has bolstered its reputation as the leader among central PSUs in climate change and sustainable development through transparency and openness. Besides, ONGC will have the access to the technologies adapted by different signatory compares m achieving sustainable development.

17. Human Resources

ONGC values its Human Resources the most. To keep their morale high, your company extends several welfare benefits to the employees and their families by way of comprehensive medical care, education, housing and social security. During the year 2011 - 12. your company implemented various new and revised welfare policies for its employees. 105 employees were released under the Voluntary Retirement Scheme during the year. The Human Resource value of the employees based on "Lev and Schwartz" Model is enclosed at Annexure-B

Wage revision of unionised staff

Consequent upon the tripartite settlement under section 12(3) of the Industrial Disputes Act. 1947 in respect of wage revision of non-executive cadre, the Performance Related Pay was discussed with the recognized unions in a number of meetings before the scheme was finalized and accorded approval of Board of Directors in June, 2011. Accordingly, the payment for the financial year 2010-2011 was released in December, 2011. Thereafter, the 73rd Joint Committee Meeting with recognized unions was held on 19-20th March, 2012 at New Delhi for redressal of various Organizational. Welfare and RAP related issues. The Wage Revision of Contingent/Casual employees which was due for revision w.e.f. 1st January, 2012 has been implemented with additional emoluments i.e. House Rent Subsidy, Educational Grant and ex-Gratia for a period of three years w.e.f. 1st January, 2012

18. Employee Warfare Trusts

a. Your company has established the following major trusts for welfare of the employees:

_ Employees Contributory Provident Fund(ECPF)Trust, managing Provident Fund accounts of employees of your company.

_ The Post Retirement Benefit Scheme(PRBS)Trust of your company manages the pension scheme of the employees.

- The Composite Social Security Scheme (CSSS) formulated by your company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. Fannies of deceased employees get a financial assistance under the scheme ranging between Rs. 1.5 million to 72.0 million.

- ONGC Sahayog Trust has been created for welfare of secondary workforce or their heirs, who are in financial distress.

- Gratuity Fund Trust has been created for payment of gratuity intime, incompliance with provision of Gratuity rules.

Your Company implemented the Employees Pension Scheme (EPS-1995), w.e.f. 16th November, 1996 Your Company implemented a single integrated seamless computerised accounting system for all welfare trusts pertaining to investments, accounts, settlement and contribution etc. Employee accounts are now maintained on the new system, duly reconciled and updated, and can be viewed by the employees themselves on Company's internal All payments are made to the members through e-payment gateway.

b. Implementation of Government Directives for the priority section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Caste (SC) and Scheduled Tribe (ST) employees were 15.7% and 8.8% respectively as on 31st March, 2012. Your Company is fully committed for the welfare of SC & ST communities The following welfare activities are carried out by your Company for their upliftment in and around its operational areas:

i) Annual component plan:

An amount of Rs. 200 million is distributed to various work centers of ONGC for implementation of welfare schemes. This fund is especially meant for providing help and support in areas like Education and training. Community development, Health care, etc.

ii) Scholarship to SC and ST meritorious students:

Your Company spent Rs. 4.02 million for supporting 100 students of the SC and ST community for pursuing higher professional courses at different recognized institutes and universities.

19. Industrial Relations

During the period, harmonious industrial Relations were maintained throughout the Corporation in terms of the agreement dated 16th September, 2010 jointly and mutually reached between ASTO and ONGC. it was decided to conduct me fresh elections and to facilitate the convening of ASTO CEC for revival of representation of officers community.

The elections for new ASTO body was conducted and completed in all 20 work-centres and the entire process was completed on 3rd February, 2012. The CEC of ASTO was convened and facilitated by the management for conducting elections of ASTO President-CWC and formation of CWC. Subsequently, recognition was conferred on the new ASTO body, subject to the revised Policy on Recognition of Officers Association and related Code of Conduct dated 30th September. 2010. This a based on the agreement dated 16th September, 2010, between the management and ASTO, which was endorsed by the High Court of Delhi in W.P.N0.11568 of 2009 vide its order dated 30th September, 2010.

Contract Management

With reference to contracts entered into by the Company, periodic training programmers were conducted to sensitize the Principal Employers about their obligations, roles, responsibilities under the Contract Labour Regulation Act and other welfare legislations. Considering the competitive market situations, a concept of fair wage for secondary work force has been devised for better working and living conditions. Periodic audits of Principal Employers were carried out to ensure near 100% compliances of Labour statutes. Contacts were standardized and aligned to the Model Service Agreements to protect the interest of ONGC as well as the secondary work force. Contracts are being awarded in line with laid down principles of ONGC.

20. Grievance Management System

Your Company provides an easily accessible mechanism to the employees for redressal of their grievances, either through informal or formal channels. All key executives of your Company have designated a publicized time slot, thrice a week, to meet public representatives for speedy redressal of their grievances. Your Company has also approved creation of a 'single window front office' at all work-centres. An officer not below Chief Manager level is responsible for ensuring accessibility and responsiveness to public grievances

21. Right to information Act, 2005 (RTI Act)

An elaborate mechanism has been set up throughout the organization to deal with the requests received under the RTI Act. During the year 2011-12,1413 applications were received, out of which 1362 were deposed off and Balance 51 applications (as on 01.04.2012) are under process for disposal.

22. Implementation of Official Language Policy

During the year, a series of initiatives were undertaken for promotion and propagation of Rajbhasha in official communication. Literary works in official language continued to be financially supported by your Company. In addition, all inductees at the executive level were exposed to the Official Language Policy of the Govt of India. Your Company also contributed actively in publishing the bilingual Petroleum Terminology, an initiative of the Ministry of Petroleum and Natural Gas and in effective implementation of the Hindi Teaching Scheme of Govt of India at all its regional work centres Your company has received appreciation from the Parliamentary Committee on Official Language and the Government of India for excellent progress of implementation of Official language directives.

23. Human Resource Development

All the 32.862 ONGCians (as on 31th March, 2012) dedicated themselves for the excellent performance of your company during the year. During the year, HR group of your company ensured that adequate numbers with requisite skills-sets were inducted to meet the requirements of the Company as well as replenish the manpower loss on account of high superannuation.

Your company believes that continuous development of its human resource fosters engagement and drives competitive advantage. Towards this end, it conducted Business Games all over the organization to none the business acumen of its executives. Fun Team Games(FTGs) were conducted second time since its inception in 2010. for EG and staff level employees to inculcate MDT(Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. A climate survey was conducted in which over 17,500 employees responded. The responses were collated and analysed work centre wise. Based upon the outcome of the survey analysis, the work centers have designed action plans for implementation. It also conducted the Assessment Development Centre (ADC) for 306 DGM level executives and provided them developmental inputs.

a. Performance Management System and Performance Related Pay

Your Company. in line with the DPE Guidelines is devising a robust performance management system which is effective in identifying and rewarding high performers. As part of the process, the performance appraisal system has been completely e-enabled. To strengthen transparency in the system, performance ratings of the executives have been disclosed to them. Incentive payments for the year 2010-11 were made during the year to the executives of your Company based on the MoU rating of the Company and the individual's performance.

b. Training

Skill up-gradation is a vital component for the Human Resource Development For the first time in ONGC Academy, an external agency M/s Emst & Young was engaged to review and evaluate the current process of training, infrastructure and present system of course/faculty evaluation. ONGC Academy has taken the initiatives of formulating new training policy for the organization.

In pursuance to the mandate of equipping the executives with latest knowledge in the specialized fields of upstream oil and gas sector, attempts were made to organise training programs with the best of faculties from India and abroad. During the year 2011-12. ONGC conducted various training programmes for its executives and staff spanning 1,72,208 training mandays.

24. Accounts

Consistent with the trend in preceding years, your Company, its various operating unit and its senior management officials have been in receipt of various awards and recognitions. Details of such accolades are placed at Annexure-C.

25. Sports

Your company has 171 International & National sports persons who represent ONGC as well as the country in various national and international events throughout the year. In addition to this, ONGC supports around 128 young and budding sportspersons through scholarships. During the year, ONGC sportspersons left an indelible mark in various sporting events. Cricket icons Gautam Gambhir, Munaf Patel and Virat Kohli of ONGC continued to display their Prowess in the recently concluded IPL-2012 edition. Key achievements of ONGC sports in 2011-12 are as follows:

Athletics

Mayookha Johny became Asian champion in long jump event by securing Gold medal. in Asian Athletics championship held at Kobe.

Badminton

1. Ashwini Ponnappa bagged bronze medal in World Championship held at London from 8th to 14th August 2011. Best ever performance by any Indian shuffler in World Championship.

2. Sourabn Verma. ranked No. 1 in the country, recently reached finals in the Syed Modi Grand Prix Badminton tournament beating players like Tommy Sugiarto (World No. 17), Hun yun (World No. 23) eventually losing to Taufik Hidayat World No. 11. He has been crowned National Champion in Singles in January 2012.

Billiards and Snooker

Alok Kumar won Asian Billiards title held at Iran in April 2011 and became the fast player achieve the rare feat of winning both the Billiards and Snooker Asian title at different points of time, the only Assn to do so.

Hockey

ONGC Hockey team has won four major National level tournaments including Nehru Hockey Cup and Lal Bahadur Shastri Cup.

Shooting

Shagun Chaudhary won the Quota Place for the 2012 London Olympics and became the first ever Indian woman to qualify for Olympics in the shotgun event. Ranked World No. 8th and Asian No. 2.

Table Tennis

Amal Raj became National Champion in Singles on 29th January, 2012.

You will be Proud to know that ONGC has the distinction of the Principal Sponsor of the contingent to the London Olympic 2012.Out of the 81 Indian sports persons who qualified for the Olympics, 15 belong to ONGC.

26. Women Empowerment

Women employees constitute 6% of ONGC's workforce During the year, programmes for empowerment and development, including a programme on gender sensitization was organized. Your Company actively supported and nominated its lady employees for programmes organised by "Women in Public Sector" (WIPS) and "Women in Leadership Roles" (WLL).

27. Corporate Social Responsibility (CSR)

In recognition of its role as a 'responsible leader'. ONGC continued its quest to make positive, tangible difference in the fives of the vulnerable and disenfranchised stakeholders. Seeking to herald a business paradigm based on an interconnected vision - of people's welfare, societal growth and environmental conservation, in 2011-12 ONGC continued to cater to the developmental needs across its 12 focus areas: Education including vocational courses; Health Care; Entrepreneurship (self-help 4 livelihood generation) schemes; infrastructure support-roads, bridges, schools, hospitals in and around our operational areas; Environment protection. Ecological conservation & promotion: Protector of heritage sites, UNESCO heritage monuments etc.; Promotion of artisans, craftsman, musicians, artists etc. for preservation of heritage, art & culture. Women's empowerment. Girl child development gender sensitive projects; Water management including ground water recharge; Initiatives for physically and mentally challenged; Sponsorship of seminars, conferences, workshops etc; Promoting sports/sports persons; supporting agencies promoting sports/sports persons.

In 2011 -12. some of the key projects undertaken by ONGC include:

i. Varisthajana Swasthya Sewa Abhiyan: ONGC along with Help Age India continues its efforts to taken healthcare to the doorsteps of the elderly through Mobile Medicare Units (MMUs). In 2011-12, all the 20 MMUs were launched and treatment worth 1.9 lakh was provided across the eight states and one Union Territory.

ii. ONGC-GICEIT Computer Centre: Under this initiative, implementing partner Bharatiya Vidya Bhavan operates five computer centers providing employment-related computer training to underprivileged youth across different operational areas of ONGC. In 2011 -12, more than 1400 students received training through these centers.

iii. Project Utkarsh-An ONGC-AROH Effort for Economic Upliftment of People in Sibasagar: Initiated in 2011-12, this project seeks to expand livelihood opportunities for 400 households in one year through training of women in skills like tailoring, soft toy making etc. with linkages for income generation as well as training the elderly in vocations like goatery, piggery, mushroom cultivation etc. while establishing adequate forward and backward linkages.

iv. Harit Moksha: This unique CSR initiative where wood consumption during traditional cremations is significantly reduced due to innovatively designed Mokshda Green Cremation Systems (MGCS) was expanded in 2011-12. Now, there are 10 such MGCS units across the cities of Vadodara, Carrtbay. Ahmedabad and Delhi.

v. ONGC-NSTFDC Hathkargha Prashikshan: The CSR project was aimed at economically empowering the women tribal handloom artisans in Assam to facilitate cluster development for economically marginalized tribal populations. In 2011 -12, around 100 tribal handloom artisans were provided on-the-job training in the improvised looms by master craftsmen that included training in intricate designs for catering to wider markets.

vi. ONGC & Ramaknshna Ashram Mobile Medicare Unit: Initiated in 2011-12. this CSR project was envisaged with intent to cater to the health and awareness needs of the underprivileged in the extremely backward region of Kalahandi, Orissa. A Mobile Medical cum Physiotherapy unit to provide free treatment and a Mobile library cum audio visual unit to spread awareness among me community in the field of health, education, agriculture will be set up under this project

vii. ONGC Hospitals ONGC is planning to set up multi-specialty hospitals at Sibsagar, Assam and Ankteshwar, Gujarat and a Community Hospital at La

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Mar 31, 2011

Dear Members,

Production Company in the World and 18th in the overall listing of global energy companies as per Platts Top 250 Global Energy Company Ranking 2010 (November, 2010) ONGC has been ranked at 172nd position in Forbes Global 2000 list 2011 of world’s biggest companies for 2010 (April, 2011). It has retained the number one rank among Indian companies and has been ranked at second position in Financial Express FE500 listing of Indian companies both in terms of Net Worth and Overall Composite Ranking.

Physical Performance: 2010-11

Exploration

During FY’11, your Company has made 24 discoveries in domestic fields (operated by

ONGC); 15 new prospects and 9 new pool discoveries. Out of the 15 new prospect discoveries, 5 are in NELP blocks. Some of the significant discoveries are Vadtal 1 & 3, Karnanagar-1 and Matar-12 in Western Onland, GK-28-2 2 in Gulf of Cambay, C-1-6 & C-23-9 in Western Offshore,

Laxminarasinmapuram, Vygreswaram SW and Malleswaram in KG onland, GS-KV-1 & GS-29-6 in KG Offshore, Kuthanallur & North Kovilkallapal in Cauvery onland and Agartala Dome-30 in A&AA basin. Out of these discoveries Matar-12, Aliabet-2 assume significance because these have been made in the blocks where the other operators failed to make breakthrough earlier. Out of 15 onland discoveries, nine discoveries have already been put on production.

Reserve Accretion and RRR

Your Company accreted 236.92 million metric tonnes of oil equivalent (MMTOE) of In-place volume of hydrocarbon in domestic basins (operated by ONGC). The ultimate reserves accretion has been 83.56 MMTOE which surpassed the record breaking performance of 82.98 MMTOE in FY'10 and is the highest in last two decades. Total reserve accretion in domestic basins has been 83.85 MMTOE [including 0.29 MMTOE from ONGCs share in Joint Ventures (JVs)]. This fiscal also your Company maintained Reserve Replacement Ratio (RRR) more than one with RRR of 1.76 (with 3P reserves).

Highest-ever production of oil and gas

The combined production of oil and oil equivalent gas (O OEG) production of ONGC, including OVL and ONGCs share in PSC- JVs, in FY11 has been 62.05 MMTOE; the highest-ever and 1.8% more compared to the production during FY’10 i.e., 60.93 MMTOE.

Highest-ever production from overseas assets

During FY11, ONGC Videsh Limited (OVL), the wholly owned subsidiary of your Company, registered a production of 9.45 MMTOE O OEG (Crude oil: 676 MMT; Gas: 2.69 BCM); surpassing the earlier peak production of 8.87 MMTOE in FY10.Incremental production gains from BC-10 field in Brazil, Imperial Energy, Russia MECL, Colombia and Block 6.1A Vietnam helped OVL to achieve the feat.

New Projects

The Board of your Company approved development of four discovered fields i.e, SB-14, WO series fields, BHE and BH-35 fields in FY11 with an investment of Rs. 29,334 million. Besides that infrastructure renewal project for three western onshore assets i.e., Ankleshwar, Ahmedabad and Mehsana was also approved with an investment ofRs. 79,287 million. Oil and gas fields in these assets have been on stream for more than 30 years and as such the infrastructure required renewal.

New Sources of Energy

Shale gas

Your company created a landmark in the history of India for exploration of unconventional hydrocarbons, when gas flowed

out from the Barren Measure shale at a depth of around 1,700 m in its first Research & Development well RNSG-1 at Icchapur, near Durgapur, West Bengal on 25th Jan 2011. This breakthrough has encouraged your Company to venture into many shale sequences in well explored Cambay, KG, Cauvery and Assam-Arakan Basins for exploitation of Shale Gas

Coal Bed Methane (CBM)

Your company is currently operating in five CBM blocks i.e., Jharia, Bokaro, North Karanpura and South Karanpura Blocks in Jharkhand and Raniganj block in West Bengal. Final Development Plan (FDP) for Parbatpur area measuring 18 Sq.Km in Jharia Block has been submitted to the Government of India (GoI) for approval. Howeve at present incidentally produced gas during production testing is being sold to Calcutta Compression & Liquefaction Ltd. (CC&L) with the approval of GoI.

Underground Coal Gasification (UCG)

Your company has selected Vastan Mine block in Surat district, Gujarat for UCG Pilot project. Environmental clearance for the project has been obtained from Ministry of Environment and Forest, Government of India and request has been submitted to Ministry of Coal for award of mining lease which is awaited.

Alternate sources of energy

The 51 MW Wind farms which has been set up near Bhuj in Gujarat is operating well and electricity generated is wheeled through the Gujarat State Electricity Grid for captive consumption by ONGC at Ankleshwar, Ahmedabad, Mehsana and Vadodara. Your Company is in the process of setting up one more Wind farm of 102 MW capacity in Rajasthan with an investment ofRs.8,000 million.

ONGC Energy Centre set up by your Company for holistic research for new and alternate energy sources has been pursuing a number of new projects like Application of Solar Thermal Engine, Thermo-chemical generation of hydrogen, Bioconversion of coal/oil to methane gas, Uranium exploration, Solid state lighting, Solar PV Energy Farm, etc.

ONGC Energy Centre (OEC), a dedicated centre towards alternate sources of energy is pursuing various alternate energy sources projects to establish lead and mass scale commercialization. OEC successfully installed the three state-of-the-art Solar Thermal Engines at the Solar Energy Centre (SEC), Ministry of New and Renewable Energy (MNRE) campus at Gurgaon. Some of the other significant projects which OEC is pursuing are Thermo-Chemical Reactor for Hydrogen generation, Bio Conversion of Coal to methane, exploration and exploitation of Uranium Reserves globally and LED Project.

1. Financial Results

Inspite of fluctuating crude prices and increased burden of its share of under-recovery on account of the losses suffered by the Oil Marketing Companes, your Company has earned a Profit After Tax of Rs. 189,240 million (Rs. 167,676 million in 2009-10), up 12.86 %, which is incidentally the highest-ever During the year under review, your Company registered Gross revenue ofRs. 695,322 million (Rs.619,832 million in 2009-10), up 12.18%.

Highlights:

Gross Revenue: X 695,322 million

Profit After Tax (PAT): X 189,240 million

Contribution to Exchequer: ^ 317,759 million*

Return on Capital Employed 51.6 %

Debt-Equity Ratio 0.00

Earning Per Share (Rs.) 22.12**

Book Value Per Share (Rs.) 113**

*OID Cess, Excise duty, Royalty, Corporate and Dividend Distribution Tax, Sales Tax / VAT and Dividend on Government shareholding.

**After considering split and bonus issue

Financial Results (Rs. in million)

2010-11 2009-10

Gross Revenue 695,322 619,832

Gross Profit 441,999 396,054

Less:-

Interest 251 686

Exchange Variation 14 (4,033)

Depreciation 20,006 12,312

Amortisation 83,698 89,407

Depletion 54,374 45,302

Impairment 1,352 (433)

Provision/Write Offs 6,114 2,974

Provision for Taxation 86,950 252,759 82,163 228,378

(including deferred tax liability of Rs. 11,160 million)

Profit After Tax 189,240 167,676

Appropriations

Interim Dividend 68,444 38,500

Proposed Final Dividend 6,417 32,083

Tax on Dividend 12,156 11,616

Transfer to General Reserve 102,223 85,477

Total 189,240 167,676

Previous year figures have been regrouped wherever necessary

2. Dividend

Your Company paid an interim dividend oR32 per share (320%), in December 2010. The Board of Directors have recommended a final dividend ofRs. 0.75 per share (15%) which is after considering split and bonus issue during the year. This makes the aggregate dividend at Rs. 35 per share (350% before considering split and bonus as compared to Rs. 33 per share (330%) paid in 2009-10. The total dividend will absorb Rs. 74,861 million, besides 112,156 million as tax on dividend, which is historically the highest dividend payout by the Company.

3. Management Discussion and Analysis Report

In terms of Clause 49(IV)(F) of the Listing Agreement with the Stock Exchanges, a Management Discussion and Analysis Report h been included and forms part of the Annual Report of the Company.

4. Production and Sales

Highlights of production and sales of Crude Oil, Natural Gas and Value- added products:

Unit Production Sales Value (Rs. in million) 2010-11 2009-10 2010-11 2009- 10 2010-11 2009-10

Direct

Crude Oil (MMT) *27.28 *26.46 22.94 22.33 448,645 445,040

Natural Gas (BCM) **25.32 **25.59 20.29 20.60 127,544 73,797

Ethane/Propane000 MT 388 535 387 533 8,796 10,249

LPG 000 MT 1054 1105 1057 1108 18,369 21,924

Naphtha 000 MT 1570 1592 1600 1598 56,342 47,137

SKO 000 MT 116 165 118 166 679 3,255

ATF 000 NT 19 8 14 2 527 52

Others 475 411

Sub Total 661,377 601,865

Trading

Motor Spirit 000 KL 0.63 0.55 36 27

HSD 000 KL 3.27 4.29 134 156

Others 2

Sub Total 172 183

Total 661,549 602,048

* includes 2.86 MMT (Previous year 1.79 MMT) from Joint Ventures.

** includes 2.23 BCM (Previous year 2.49 BCM) from Joint Ventures.

5. Oil & Gas Reserves

Your Company has made voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69). ONGC has added 236.92 MMTOE of oil and oil-equivalent gas (O OEG) initial in-place volume with 83.56 MMTOE of O OEG as the ultimate reserve component during FY 11 in domestic fields (operated by ONGC). The ultimate reserves accretion, including its share in joint ventures is 83.85 MMTOE of O OEG, which is the highest in last two decades.

Ultimate Reserve (3P) accretion O OEG (in MMTOE)

Year Domestic ONGC's Total OVL's Total Assets share in Domestic Share in Domestic Reserve Foreign JVs Assets (1) (2) (3)=(1) (2) (4) (5)=(3) (4)

2008-09 68.90 2.82 71.72 135.08 206.80

2009-10 82.98 4.39 87.37 0.35 87.72

2010-11 83.56 0.29 83.85 33.49 117.34

6. Statement of Reserve Recognition Accounting

The concept of Reserve Recognition Accounting attempts to recognize income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information:

(a)Proved Oil and Gas reserve quantities

(b) Capitalized costs relating to Oil and Gas producing activities

(c)Cost incurred for property acquisition, exploration and development activities

(d) Results of operations for Oil and Gas producing activities

(e) A standardized measure of discounted future net cash flows relating to proved Oil and Gas reserve quantities

Your Company has disclosed information in respect of (a) and (d) above in the Annual Financial Statements.

Your Company has made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserve at Annexure-A to this report as Statement of Reserve Recognition Accounting (RRA).

7. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards (AS-1 to AS-29) and Successful Efforts Method as per the Guidance Note on Accounting for Oil & Gas Producing Activities issued by Institute of Chartered Accountants of India (ICAI) and provisions of the Companies Act, 1956.

8. Internal Control System

The operations of your company have been structured to provide adequate support and controls. Standard procedures and guidelines issued to the business units from time to time to support best practices are'followed in all facets of activities, Accounting and Financial Management, Personnel Management, Repairs and Maintenance, Materials Management and Project Implementations.

9. Subsidiaries

(I)ONGC Videsh Limited (OVL)

ONGC Videsh Limited (OVL), the wholly-owned subsidiary of your Company for overseas E&P activities, recorded impressive performance during the year 2010-11. OVL’s share in production of oil and oil equivalent gas (O OEG) together with its wholly-owned subsidiaries ONGC Nile Ganga B.V ONGC Amazon Alaknanda Limited and Jarpeno Limited was the highest ever production with 9.45 MMTOE during 2010-11 up by 7% as compared to 8.87 MMTOE of O OEG during 2009-10. OVLs consolidated gross revenue increased by 21% fromRs.153,830 million during 2009-10 toRs. 186,830 million during 2010-11 and consolidated net profit after tax increased by 29% from Rs. 20,900 million during 2009-10 to Rs.26,910 million during 2010-11.

OVL added one asset in its portfolio of exploratory assets by signing agreements with KazMunaiGas (KMG), the national oil company of Kazakhstan for acquisition of 25% participating interest in Satpayev exploration block on 16th April, 2011 at Astana, Kazakhstan in the presence of Hon’ble Prime Minister of India and the President of Kazakhstan. This transaction marks the maiden entry of OVL in Kazakhstan hydrocarbon sector. Satpayev exploration block, located in the Kazakhstan sector of the Caspian Sea, covers an area of 1482 sq.km and is at a water depth of 6-8 mts. Satpayev is situated in close proximity to major discoveries in the North Caspian Sea. The block contains two prospective structures, namely Satpayev and Satpayev Vostochni East) with estimated hydrocarbon resources of about 256 MMT.

OVL presently has participation in 33 projects in 14 countries. Out of 33 projects, OVL is operator in 11 projects and joint operator in 6

projects. OVL is currently producing oil and gas from 9 projects viz., Greater Nile Oil Project and Block 5A in Sudan, Block 06.1 in

Vietnam, Al Furat Project in Syria, Sakhalin-I Project and Imperial Energy in Russia, Mansarovar Energy Project in Colombia, San Cristobal Project in Venezuela and Block BC-10 in Brazil. In addition to 9 producing projects, Exploration Block XXIV, Syria is on extended production testing. Blocks A-1 and A-3 in Myanmar, Carabobo-1 project Venezuela and Farsi Block, Iran have discoveries and further work is being carried out. One Pipeline Project was executed and completed by OVL and handed over to Government of Sudan in October, 2005 and is currently under lease. The remaining projects are in exploration phase.

Direct Subsidiaries of OVL:

a) ONGC Nile Ganga B.V. (ONGBV):

- ONGBV, a subsidiary of OVL, is engaged in E&P activities in Sudan, Syria, Venezuela, Brazil and Myanmar.

- ONGBV holds 25% Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 1.801 MMT during 2010-11.

- ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria with its share of oil and gas production of about 0.662 MMTOE during 2010-11.

- ONGBV holds 40% PI in San Cristobal Project in Venezuela with its share of oil production of about 0.757 MMT during 2010-11.

- ONGBV holds 15% PI in BC-10 Project in Brazil with its share of oil and gas production of about 0.586 MMTOE during 2010-11.

- ONGBV holds 43.5% PI and 100% PI as operator of exploratory blocks BM-S-73 and BM-ES-42 respectively and also holds 43.5% PI in exploratory block BM-S-74 and 25% PI each in exploratory blocks Block BM-SEAL-4 and Block BM-BAR-1 all located in Deepwater Offshore, Brazil.

- ONGBV holds 8.347% PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for Pipeline project, Myanmar.

b) ONGC Narmada Limited (ONL):

ONL, a wholly-owned subsidiary of OVL held 13.5% PI in deep water exploration Block-2, Nigeria-So Tom & Principe, Joint Development Zone (JDZ). OVL has communicated its intention of not continuing the block to the Operator and Joint Development Authority (JDA) of Joint Development Zone Nigeria-São Tomé & Principe as the development of the project is not commercially viable.

c) ONGC Amazon Alaknanda Limited (OAAL):

OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During 2010-11, OVL's share of production in MECL was about 0.468 MMT of oil.

d) Jarpeno Limited:

Jarpeno Limited, a wholly-owned subsidiary of OVL incorporated in Cyprus, acquired Imperial Energy Corporation plc. a UK listed upstream oil exploration and production entity with its main activities in Tomsk region of Western Siberia in Russia, in January 2009. During 2010-11, Imperial Energy's production was about 0.770 MMT of oil.

e) Carabobo One AB:

Carabobo One AB, a wholly-owned subsidiary of OVL incorporated in Sweden, holds 11% PI in Carabobo-1 Project, Venezuela. The Transfer Decree allowing the Mixed Company Petro Carabobo S.A to carry out primary activities in the designated areas was published in the Official Gazette of the Government of Venezuela on 29th July, 2010. Conceptual Engineering & Tendering for different activities related to development of the field are in progress.

Joint Ventures of OVL: f) ONGC Mittal Energy Limited (OMEL)

OVL along with Mittal Investments Sarl (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS hold 98% equity shares of OMEL in the ratio of 51(OVL): 49(MIS) with balance 2% shares held by SBI Capital Markets Ltd. OMEL holds 45.5% and 64.33% PI in exploration Blocks OPL 279 and OPL 285,Nigeria respectively. OMEL also holds 1.11% of the issued share capital of ONGBV by way of Class-C shares issued by ONGBV exclusively for AFPC Syrian Assets; such investment being financed by Class-C Preference Shares issued by OMEL in the ratio of 51:49 to OVL and MIS respectively.

(ii) Mangalore Refinery & Petrochemicals Limited (MRPL)

Your Company continues to hold 71.62% equity stake in MRPL, a Category I Mini Ratna, which has put in a commendable all-round performance during 2010-11

Highlights

- Highest ever Refinery Crude Throughput at 12.64 MMT (up from 12.50 MMT)

- Highest ever capacity utilization at 107%, up from 106%,

- Highest ever Turnover at Rs. 438,000 million, up 21% from Rs. 361,410 million.

- Profit after Tax of Rs. 11,770 million, up 6% fromRs. 11,120 million

- Hydrocracker the major secondary processing unit achieved highest ever processing of 2 88 MMT (Capacity 121%)

- Energy index of 58.13 MBN which is the lowest ever achieved

Keeping in view its plans to make investments in various projects, a dividend of 12% has been recommended by its Board. In view of the continued under recoveries in retail marketing of Auto Fuel, the company has continued with its miniscule presence in retail Marketing thereby is not burdened with under recoveries. The direct marketing sales turnover covering Bitumen, CRMB, ATF, Furnace Oil, Mixed Xylene, Naphtha and Sulphur amounts to X 22,910 million registering a marginal increase overRs. 22,780 million of last year. A major growth is achieved in the area of marketing ATF and Mixed Xylene.

The excellent standards maintained by the Refinery on the production, energy conservation, environment management and safety front have enabled MRPL to bag several awards:

- MRPL has bagged the Petrofed 'Refinery of the Year' award on 10th May, 2011 for excellent performance during FY'10. This recognizes leading performance in production and operational efficiency in refining operations, while meeting the norms of health, safety and environmental protection

- Oil Industry Safety directorate ranks MRPL as the 1st in 'Most consistent safety performer in Refineries' for the year 2009-10

- ICRA and CRISIL reaffirmed Issuer rating of 'Ir AAA' and 'Cr AAA' to MRPL for lowest credit risk.

- Best Exporter Award (Gold) - 2010 for exporting products through NMPT, by Federation of Karnataka Chamber of Commerce & Industries.

- The 'Oil & Gas Conservation Award-2010' for Furnace/Boiler Efficiency instituted by CHT.

10.Exemption in respect of Annual Report of Subsidiaries and Consolidated Financial Statement

Ministry of Corporate Affairs (MCA) has vide circular dated 08.02.2011 and clarification dated 21.02.2011 decided to grant a general exemption from the applicability of Section 212 of the Companies Act, 1956 from attaching the Balance Sheet and Profit & Loss Account prepared regarding the financial year ending on or after 31.03.2011, in relation to subsidiaries of those companies which fulfill the various conditions including inter-alia approval of the Board of Directors for not attaching the balance sheet of the subsidiary concerned. Your Board has accorded necessary approval in this regard for not attaching the Balance Sheet and Profit & Loss Account of its subsidiaries (i) ONGC Videsh Limited (OVL) and (ii) Mangalore Refinery & Petrochemicals Ltd. (MRPL). All the conditions mentioned in the circular are being complied with by ONGC. Full Annual Report of ONGC including its subsidiaries will be made available to any shareholder, if he/she desires. Further, Annual Reports of MRPL and OVL are also available on website www.mrpl.co.in and wwwongcvidesh.com respectively.

In accordance with the Accounting Standard (AS)-21 on “Consolidated Financial Statements” read with AS-23 on “Accounting for Investments in Associates” and AS-27 on “Financial Reporting of Interests in Joint Ventures”, audited Consolidated Financial Statements for the year ended 31st March, 2011 of the Company and its subsidiaries form part of the Annual Report.

11.Joint Ventures/ Associates

(i)ONGC Tripura Power Company Limited (OTPC)

ONGC has promoted OTPC with envisaged equity stake of 50% along with Govt of Tripura (0.5%) and IL&FS (26%) to set-up 726.6 MW (2 x 363.3MW) gas based Combined Cycle Power Plant (CCPP) at Pallatana in Tripura to monetize idle gas assets in Tripura. The generation project is in advanced stage of implementation by Bharat Heavy Electricals Limited, which is engaged as the turnkey EPC agency. The financial closure of the project has earlier been achieved and various linkages like gas supply from ONGC and power off-take by NE states has already been tied up. The JV Company is making all-out efforts to commission the project, being set up at a challenging location, as per schedule i.e. by March 2012. The total Capex commitment of the JV Company isRs.25,286 million and total expenditure isRs.16,009 million till 31st May 2011.

(ii) ONGC Petro-additions Limited (OPaL)

Your Company has promoted a JV company “ONGC Petro-additions Limited” (OPaL) with envisaged equity stake of 26% along with GAIL (17%) and Gujarat State Petroleum Corporation Ltd (GSPCL (5%) to implement a mega petrochemical complex comprising of 1.1 MMTPA ethylene Cracker and global scale polymer units within Dahej SEZ as a step towards downstream integration. Project implementation is in progress with major contracts, like Site Infrastructure Development, DFCU, LSTK for HDPE etc., already awarded. The total Capex commitment of the JV Company isRs.141,449 million and total expenditure isRs.56,380 million till 31st May 2011.

(iii) Mangalore Special Economic Zone Limited (MSEZ)

ONGC with envisaged equity stake of 26% in MSEZ along with KIADB (23%) and IEDCL KCCI (51%), is promoting another SEZ in coastal Mangalore. Ministry of Commerce & Industry has formally notified to set up a Petro-chemical Specific SEZ in 1630 acres of land. Total land in possession is 2317 acres out of which 542 acres has been allotted to OMPL, ISPRL etc. Resettlement and Rehabilitation work of Project Displaced Family (PDF) is in progress and Chief Minister of Karnataka has approved Comprehensive Action Plan for employment of PDF nominees of MSEZ Phase-I. The total Capex commitment of the JV Company is Rs. 7,799 million and total expenditure is Rs. 4,431 million till 31st May 2011.

(iv) ONGC Mangalore Petrochemicals Limited (OMPL)

ONGC has promoted OMPL with envisaged equity participation of 46%, along with MRPL (3%) for setting up manufacturing facilities for 0.92 MMTPA Para-Xylene and 0.14 MMTPA Benzene from MRPL's aromatic streams in Mangalore SEZ as value addition project. Around 93.5% of project cost has been awarded which includes major contracts relating to project management, technology licensor and LSTK contract for process packages etc. Project implementation is in full swing. The total Capex commitment of the JV Company is Rs. 43,335 million and total expenditure is Rs. 10,309 million till 31st May 2011.

(v) ONGC TERI Biotech Limited (OTBL)

OTBL is a Joint Venture company of ONGC, incorporated on 26th March, 2007, with The Energy Research Institute (TERI) with shareholding of 49% each and balance 2% equity is held by the Financial Institutions. The JV has been promoted for addressing the requirement of Bioremediation of oily sludge, Microbial Enhanced Oil Recovery, prevention of wax deposition in tubular and solution for other oil field problems. The turnover of OTBL in FY 2010-11 is Rs. 129.54 million and Profit after Tax is Rs. 27.48 million as against turnover of Rs. 73.85 million and PAT of Rs. 16.33 million in FY 2009-10.

(vi)Petronet MHB Limited (PMHBL)

PMHBL is a JV company of ONGC (28.766%), HPCL (28.766%) and PIL (7.898%). Balance 34.57% of equity is held by the leading banks. It owns and operates a multi–product pipeline to transport MRPL's products to hinterland of Karnataka. As per audited results for the year 2010-11, the turnover of PMHBL is Rs. 786.50 million against Rs. 691.80 million in the year 2009-10. However due to change in

depreciation policy as observed by C&AG, adjustments of previous year were also accounted for in the current year balance sheet causing net loss of Rs. 194.40 million.

(vii) Petronet LNG Limited (PLL)

ONGC has 12.5% equity stake in PLL, identical to similar stake by other Oil PSUs co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG terminal of PLL which was expanded to 10 MMTPA capacities in June 2009 is currently meeting around

20% of the total gas demand of the country. A new LNG terminal of 2.5 MMTPA is under construction at Kochi which is expandable upto 5.0 MMTPA depending on the LNG supplies and market conditions. The turnover of PLL during 2010-11 was Rs. 131,972.8 million (previous year Rs. 106,491 million) and net profit is Rs. 6,196 million (previous year Rs. 4,045 million). PLL has declared a dividend of 17.5 % same as the previous year.

(viii) Pawan Hans Helicopters Limited (PHHL)

The Company has increased its equity stake in PHHL from 21.5% to 49% during 2010-11. Balance 51% equity is held by the Government of India. PHHL is one of Asia’s largest

helicopter operators having a well balanced operational fleet of 40 helicopters. It provides helicopter support for ONGC’s offshore operations. PHHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC. The accounts of PHHL for 2010-11 are under finalisation.

(ix) Dahej SEZ Limited (DSL)

Your Company with envisaged equity stake of 23 % along with Gujarat Industrial Development Corporation (26%) is developing a multi-product SEZ at Dahej in coastal Gujarat over 1717 hectares of land through an SPV “Dahej Special Economic Zone Ltd”. About 1068 hectares of land has already been allotted and 140 hectares has been committed to 61 allottees. SEZ is operational with 5 of its units and has exported more than Rs. 4,000 million worth of products. The total Capex commitment of the JV Company is ^ 9,010 million as on 31st May 2011. Further, DSL has made a net profit oR86 million in FY 2010-11.

12.Other Projects / Business initiatives

(a) C2-C3-C4 Extraction Plant :

Company’s C2-C3 extraction plant at Dahej, using LNG imported by Petronet LNG Limited as feed stock, was mechanically completed on 30.12.08. with an investment of Rs. 6,194.65 million Subsequently, evacuation facilities were completed on 24.02.11 with an investment ofRs. 1,647.04 million. The Commissioning of the plant has been deferred pending resolution of certain commercial and taxation related issues.

Wind Power Project

Based on success of 51 MW Wind Farm at Kutch (Gujarat), your Company, in its mission of providing value linkages in other sectors of energy business, is setting up another 102 MW Wind Farm approval for investment ofRs. 6,500 million. Tendering activities for project implementation is in progress.

(b) Partnerships for growth

(i) Agreement with Petroleos de Venezuela SA (PDVSA)

ONGC Videsh Ltd (OVL) led consortium inked an agreement on 12th May 2010 at Caracas, Venezuela with Petroleos de Venezuela SA (PDVSA) national oil company of Venezuela for the development and production of hydrocarbons from the Carabobo project in the Orinoco region of Venezuela.

(ii) MOU with Uzbekneftegaz (UNG) for E&P cooperation in Uzbekistan

ONGC Videsh limited (OVL) entered into a Memorandum of Understanding (MOU) on 17th May, 2011 with Uzbekneftegaz (UNG), the National Oil Company of Uzbekistan for joint cooperation in the Upstream E&P sector of Uzbekistan as well as third countries. The MOU was signed by Mr. S.P. Garg, Director (Finance), OVL and Mr. Shokir Faizullayev, Chairman, Uzbekneftegaz in the presence of H.E. Mr. Rustam Azimov, First Deputy Prime Minister, Minister of Finance of Uzbekistan.

(iii) Operating agreement for Farm-in in HF-ONN-2001/1

ONGC signed Operating Agreement with MOL Hungarian Oil & Gas Plc on 9th Nov 2010 to conclude farm-in process by the Hungarian company into ONGC's NELP-III exploratory block HF-ONN-2001/1 located in the Himalayan foothills in Himachal Pradesh. MOL is a fully integrated petroleum company with global operations from exploration to marketing and petrochemicals. It was the National Oil Company of Hungary prior to disinvestment in 1995.

(iv) Joint Study agreement with M/s Stealth Ventures, Canada

A Joint Study Agreement (JSA) was signed by ONGC and M/s Stealth Ventures, Canada for assessment of unconventional resources (hydrocarbons) on 9th June, 2010 Subsequently, a Confidentiality Agreement (CA) was signed on 30th June, 2010 for enabling data viewing at ONGC and the scope of work was signed for execution of the project detailed in the JSA in three stages; Preliminary Stage, Screening Stage and Study of Prioritised Areas.

(v) MOU with NGRI and IPT

ONGC has signed MOU with NGRI, India and IPT (Institute of Petroleum Technology) of NTNU (Norwegian University of Science & Technology), Norway to work on 'Reservoir modeling for Enhanced Oil Recovery using Fractals and 4D Seismi for analyzing existing EOR Projects so as to develop and demonstrate more potent technique for increasing oil/gas recovery rate within the oil fields of ONGC and also to develop knowledge base as reservoir surveillance.

(vi) Agreement with STC, Mauritius

MRPL signed an agreement with State Trading Corporation, Mauritius on 1st July, 2010 for supply of liquid petroleum products amounting to 1.1 MMT per annum for a period of 3 years.

(vii) Collaborative projects with Indian Institute of Technology (IIT)

ONGC has taken up different collaborative projects viz. Evaluation of the effect of climate changes on met-ocean parameters for the western offshore region with IIT Mumbai, Finite Element Analysis of tubular Joints of offshore Jacket platform with IIT Chennai and Estimation of Lifetime and Life Cycle Cost of FRP Pipes Manufactured Using Various Technologies Of Offshore & Onshore Applications with IIT Kharagpur.

13.Information Technology

Project ICE

Project ICE, the ERP based business portal of ONGC was upgraded from MySAP 4.6c to ECC 6.0 to leverage the new functionalities of the latest ERP system consisting of Production Revenue Accounting (PRA), Governance, Risk & Compliance (GRC), Master Data Management (MDM), Identity Management (IDM), Occupation Health (OH), Mobile Asset Management. System based processes for Performance Related Pay (PRP), Perquisites and Online Claims and re-imbursements have now been enabled in totality.

14.Health, Safety & Environment (HSE)

Your Company has implemented globally recognized QHSE management systems conforming to requirements of ISO 9001, OHSAS 18001 and ISO 14001 at ONGC facilities and certified by reputed certification agencies at all its operational units. Corporate guidelines on incident reporting, investigation and monitoring of recommendations was developed and implemented for maintaining uniformity throughout the organization in line with international practice. First of its kind workshops on safety of contractual workers were arranged under the themes “Safe Together- Tomorrow” and "Effective Supervision is the Key". For the first time HSE index has been mapped in the performance contract of Key Executives. Policy circulars on use of Halon, Herbicides and Colour Code of Slings have been issued.

- The year 2011 declared as - “Year of Safety, Compliance & New Campaign”.

- Offshore Package Policy renewed for 2011-12 at US$ 27.7 million comparable to US$ 27.05 million, marginally increased considering volatile market due to Macondo blowout and earthquake in Japan.

- 444 QHSE certification/ Recertification/ Surveillance audits for sustaining HSE accreditations carried out during FY’11 against MOU target of 365 audits.

- 283 HSE process safety audits carried out during FY’11 against MOU target of 200.

Corporate Disaster Management Plan (CDMP) and guidelines have been developed for uniform disaster management all across ONGC. Your Company has also developed Occupational Health physical fitness criteria for employees deployed for offshore operations. Occupational Health (OH) module has now been populated on SAP system..

15.Energy Conservation

- Clean Development Mechanism: During the year 2010-11, host company approval for two CDM projects under development viz Green Building at Kolkata and Gas Flaring Reduction (GFR) project at Neelam-Heera Asset have been received from Ministry of Environment & Forest, Govt. of India. Further, two mitigation projects have been identified, conceptualized as CDM projects and the same are under development. ONGC tally of registered CDM projects as of now stands at six. Annual CERs earned from these projects are 209,460.

- GHG Accounting: ONGC has pioneered in the field of GHG accounting. This is the first step towards carbon footprinting and full fledged carbon disclosure system and the first step for attaining carbon neutrality. GHG accounting will also help ONGC in benchmarking its operations leading to energy efficiency and help develop new CDM projects. As per the plan, ONGC has undertaken pilot GHG accounting at nine of its selected installations this year. During the year, third party verification and certification as per GHG protocol and ISO 140064 for the GHG inventory of nine representative sites has been completed.

- Carbon Disclosure Project (CDP): An independent not-for-profit organization headquartered in London has issued its Annual 2010 Global 500 Report ONGC is the only Indian E&P Company participating in the Carbon Disclosure Project (CDP) initiative and disclosing the information voluntarily for the last four years in succession ONGC's disclosure scores have risen from 15 in 2008 to 42 in 2010. Higher score indicating greater commitment to understanding climate related issues and increased ability to measure and manage the company's carbon footprint. The key ONGC initiative of gas flaring reduction projects has also found a specific mention in the CDP 2010-India 200 report which has been compiled by Price Waterhouse on behalf of CDP.

16. Human Resources

You are aware that your Company has vast pool of skilled and talented professionals-the most valuable asset for the company. Your Company continued to extend several welfare benefits to the employees and their families by way of comprehensive medical care, education, housing and social security. During the year 2010-11, your Company implemented various new and revised welfare policies for its employees. 86 employees were released under the Voluntary Retirement Scheme during the year. The Human Resource value of the employees based on “Lev and Schwartz” Model is enclosed at Annexure B.

Wage revision of unionised staff

The Unions had submitted their charter of demands in 2007 and a working group comprising representatives of Unions and the Management was constituted. After lengthy negotiations, an MoU was signed in the meeting of the Wage Revision Committee held on 26th August, 2010.Thereafter, a tripartite Long Term Settlement (LTS) was signed on 18.09.2010 by the Management and Union before Regional Labour Commissioner (RLC) The ONGC Board, in its 209th meeting held on 22nd September, 2010 accorded approval for implementation of this tripartite settlement for Wage Revision of Unionised category of employees of ONGC w.e.f. 112007.

17. Employee Welfare Trusts

Your Company has established the following major Trusts for welfare of the employees:

- Employees Contributory Provident Fund (ECPF) Trust, managing Provident Fund accounts of employees of your Company.

- The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pension scheme of the employees.

- The Composite Social Security Scheme (CSSS) formulated by your Company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. Families of deceased employees get a financial assistance under the scheme ranging betweenRs.15 million toRs.2.0 million.

-ONGC Sahayog Trust has been created for welfare of secondary workforce or their heirs, who are in financial distress.

- Gratuity Fund Trust has been created for payment of gratuity with provision of Gratuity Rules.

- Your Company implemented the Employees Pension Scheme (EPS-1995), retrospectively w.e.f. 16th November, 1995.

Your Company implemented a single integrated seamless computerised accounting system for all welfare trusts pertaining to investments, accounts, settlement and contribution etc. Employee accounts are now maintained on the new system, duly reconciled and updated, and can be viewed by the employees themselves on Company’s intranet. All payments are made to the members through e-payment gateway

Implementation Of Government Directives For Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Caste (SC) and Scheduled Tribe (ST) employees was 15.76% and 8.74% respectively as on 31st March, 2011. Your Company is fully committed for the welfare of SC & ST communities. The following welfare activities are carried out by your Company for their upliftment in and around its operational areas:

i) Annual component plan:

An amount ofRs. 31.00 million is distributed to various work centres of ONGC for implementation of welfare schemes. This fund is especially meant for providing help and support in areas like Education and training, Community development, Health care, etc.

ii) Scholarship to SC and ST meritorious students :

Your Company spent Rs. 4.77 million for supporting 96 students of the SC and ST community for pursuing higher professional courses at different recognized institutes and universities.

18. Industrial Relations

During the year, harmonious Industrial Relations were maintained throughout the Corporation. However, a writ petition filed by a section of the Officers Association is sub-judice in the High Court of Delhi.

19. Contract Management

Periodic training programs were conducted to sensitize the Principal Employers about their obligations, roles, responsibilities under the CLRA and other welfare legislations. Considering the competitive market situations, a concept of Fair wage for secondary work force is being devised for better working and living conditions. Periodic audits of Principal Employers were carried out to ensure near 100% compliances of Labour statutes. Contracts continued on nomination basis for several years have been replaced by new contracts, during the year 2010. Contracts were standardized and aligned to the Model Service Agreements to protect the interest of ONGC as well as the secondary work force.

20.Grievance Management System

Your Company provides an easily accessible mechanism to the employees for redressal of their grievances, either through informal or formal channels. All key executives of your Company have designated a publicized time slot, thrice a week, to meet public representatives for speedy redressal of their grievances. Your Company has also approved creation of a ‘single window front office’ at all work-centres. An officer not below Chief Manager level is responsible for ensuring accessibility and responsiveness to public grievances.

21.Right to Information Act, 2005 (RTI Act)

An elaborate mechanism has been set up throughout the organization to deal with the requests received under the RTI Act. As regards applications seeking information under the Act, opening balance as on 01.04.2010 was 19 applications as these applications were received in the month of March, 2010. During the year, 984 applications were received; hence, total applications are 1003. Out of 1003 applications, information was provided in respect of 803 applications, 6 applications were transferred as the information pertained to other Public Authorities. 200 applications were rejected under the provisions of the RTI Act, 2005. One application is pending for want of information as on date. With respect to Appeals received, opening balance as on 01.04.2010 was 30 appeals as these appeals were received in the month of March, 2010. During the year, 266 appeals were received; hence, total appeals are 296. Against a total of 296 appeals, 144 were rejected, 125 appeals were accepted, 19 appeals were forwarded to RTI Cell in ONGC for supplying information as they were not considered as appeals. 18 appeals were pending as on 31st March, 2011 which have been dealt with later on.

22.Implementation of Official Language Policy

During the year, a series of initiatives were undertaken for promotion and propagation of Rajbhasha in Official communication. Literary works in official language continued to be financially supported by your Company. In addition, all inductees at the executive level were exposed to the Official Language Policy of the Govt. of India. Your Company also contributed actively in publishing the bilingual Petroleum Terminology, an initiative of the Ministry of Petroleum and Natural Gas and in effective implementation of the Hindi Teaching Scheme of Govt. of India at all its regional work centres. Your company received appreciation from the Government of India for excellent progress of implementation of Official language directives.

23. Human Resource Development

33,229 ONGCians (as on 31st March, 2011) dedicated themselves for the excellent performance of your company during the year. The workforce intake strategy pursued by ONGC caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, fast changing level of technology, physically challenging work environment, fluctuating product prices and growing competition. ONGC has drawn up a scientific five-year manpower induction plan aligned to the business plans as well factoring the manpower profile of ONGC. During the year, HR ensured that adequate numbers with requisite skill-sets were inducted to meet the requirements of the Company as well as replenish the manpower loss on account of high superannuation.

Your company believes that continuous development of its human resource fosters engagement and drives competitive advantage. Towards that end, during the year, ONGC conducted Business Games to hone the business acumen of its executives. Business Games in ONGC was introduced for executives in 2007. It has proved to be a very popular initiative and tests the ability of the executives through business quizzes, business simulations and case-study presentations The winners of the Business Games are felicitated by the CMD at Republic Day Celebrations.

For the first time, Fun Team Games (FTGs) were initiated for E0 and staff level employees to inculcate MDT (Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. The winners are felicitated by the CMD at Republic Day Celebrations. ONGC also conducted the Assessment Development Centre (ADC) programs for 189 DGM level executives and provided them developmental inputs. An engagement survey was conducted across ONGC providing valuable inputs for the management to take follow-up action.

a. Performance Management System and Performance Related Pay

Your Company, in line with the DPE Guidelines is devising a robust performance management system which is effective in identifying and rewarding high performers. As part of the process, the performance appraisal system has been completely e- enabled. To strengthen transparency in the system performance ratings of the executives have been disclosed to them. Incentive payments for the year 2009-10 were made during the year to the executives of your Company based on the MoU rating of the Company and the individual’s performance.

b. Training

Skill upgradation is a vital component for the Human Resource Development. In pursuance to the mandate of equipping the executives with latest knowledge in the specialized fields of upstream oil and gas sector, attempts were made to organise training programs with the best of faculties from India and abroad. During the year 2010-11, ONGC conducted various training programs for its executives and staff spanning 200,674 training man-days. A scheme titled “Performance Support” was launched as a pilot project on November 24th, 2010 which provides desired knowledge back-up to young executives working at various locations in their respective domains. A panel of 95 domain experts has been prepared for providing the knowledge support. ‘Return on Investment on Training’ based on Donald Kirk Patrick Model was evaluated at Level I / Level II as planned during the year 2010-2011.

To hone the managerial acumen of our officers, second batch of ‘Leadership Development Program’ involving ‘Overseas Learning Component’ was conducted through Indian School of Business, Hyderabad for executives of General Manager level. Five Advanced Management Programs involving ‘Overseas Learning Component were conducted during the year for 125 executives of DGM level. Four Senior Management Programs involving ‘Overseas Learning Component were also conducted during the year for 100 executives of E5 level. In addition 81 planned Management Development Programs have been conducted against the target of 70 programs.

24.Accolades

Consistent with the trend in preceding years, your Company, its various operating units and its senior management officials have been in receipt of various awards and recognitions. Details of such accolades are placed at Annexure C.

25. Sports

Your company has 184 International & National sportspersons who represent ONGC as well as the country in various national and international events throughout the year. In addition to this, ONGC supports around 100 sportspersons through scholarships. During the year, ONGC sportspersons left an indelible mark in mega sporting events like Commonwealth Games, Asian Games and ICC World Cup.

Cricket icons Gautam Gambhir, Munaf Patel and Virat Kohli of ONGC played a stellar role in winning the coveted ICC World Cup Trophy after a gap of 28 years for India.

Thirteen ONGCians won ten medals in CWG 2010 which includes two gold medals. ONGCians followed their CWG performance with exceptional display at 2010 Asian games held at China grabbing 12 medals in all out of which four were gold. Out of India’s total tally of 64 medals ONGCians contributed 12.

Besides splendid performance in Asian Games and CWG, Ronjan Sodhi secured a gold medal in shooting World Cup. Alok Kumar became the only player in India who won all the four National titles in cue sports i.e. Billiards, Snooker, 8 ball Pool and 9 ball

ONGC has been maintaining its supremacy in Petroleum sector & has won Petroleum Minister’s trophy for excellence for seventh year in succession.

26.ISO Certification for HR processes

As part of the increase in the pace of continual improvement in HR-ER functions, ONGC has taken the significant initiative for certifying ISO 9001:2008 of HR-ER functions through reputed agency in sixteen work centres including functions During the year, all these 16 work centres went through this vigorous process under their respective Incharge HR-ER including preparation of documentation (Quality Manual, Procedure Manual, Procedure Format), conducting internal audits, holding ISO sensitization programs and Management Review Meetings. Thereafter, the auditors of Certified Agency visited all the work centres and checked the entire process in the pre-assessment audit. During this process, observations raised by auditors were rectified by HR-ER personnel immediately who were closely associated with this process.

27. Women Empowerment

Women employees constitute 6.2% of ONGC's workforce. During the year, programs for empowerment and development, including program on gender sensitization was organized. Your Company actively supported and nominated its lady employees for programs organised by ‘Women in Public Sector’ (WIPS) and ‘Women in Leadership Roles’.

28. Improvement in Living/Working Conditions

Green Buildings: As part of its commitment to sustainable development, ONGC has taken up development of Green Buildings at Delhi, Mumbai, Kolkata & Dehradun. These buildings are expected to save 50 to 60% energy as compared to baseline buildings. Apart from savings in energy, they higher occupant comfort levels in terms of air quality and personalized controls for temperature and lighti occupants’ health and productivity. These Green Buildings shall also use renewable and clean energy sources like solar photovoltaic and Gas Gensets thereby reducing the Greenhouse Gas (GHG) emissions. These buildings shall also be redeveloped as Carbon Development Mechanism (CDM) projects.

Renovation of existing offices/ colonies/guest houses was successfully completed at many work-centers to make the facilities more in sync with present day requirements as well as make our infrastructure energy efficient. Energy supply through alternate sources of energy viz. wind energy and solar panels has commenced in some of our colonies.

Fleet Management: ONGC deployed 60 cars at Delhi & 245 cars at Mumbai operating on environment friendly greener & cleaner fuel (CNG) against a MoU with Maruti Suzuki India Limited (MSIL) to provide vehicles on lease to ONGC with fleet management services under N2N Scheme of MSIL.

Work-Life Balance: Your Company continued in its endeavors to ensure work-life balance of its employees. The colonies at many work-centers were provided facilities like gymnasiums, music rooms, etc. Outbound programs with families were organized at various work-centers. Hindi dramas on the importance of 'Work-Life Balance' were staged to create awareness amongst the employees. In addition, cultural programs involving employees and their families were also conducted. Involvement of Mahila Samitis in various CSR Projects and Resident Welfare Associations(RWAs) in cultural programs was achieved.

29.Corporate Social Responsibility (CSR)

Your Company is committed to follow the Guidelines on Corporate Social Responsibility (CSR) issued by the Department of Public Enterprises. The CSR initiative of ONGC during 2010-11 was marked by continued commitment to several large-scale key projects as well as initiation of several new projects identified under the 12 focus areas of ONGC i.e. Education including vocational courses, Health Care, Entrepreneurship (self-help and livelihood generation) schemes, Infrastructure support near our operational areas, environment protection, ecological conservation, protection of heritage sites, UNESCO heritage monuments etc., Promotion of artisans, craftsmen, musicians, artists etc. for preservation of heritage, art and culture, Women empowerment, girl child development, gender sensitive projects, promoting sports/sportspersons, supporting agencies promoting sports/sportspersons, Water management including ground water recharge and Initiatives for physically and mentally challenged. Major CSR Projects launched during the year are as follows:

- ONGC- GICIET-Computer Education Project with Bharatiya Vidya Bhavan: The initiative envisages setting up of five computer centres in Uttarakhand, Assam, Andhra Pradesh, Pondicherry and Gujarat for unemployed youth.

- HEAT with Haemophilia Federation of India: A Pan-India operation to transform lives of 1000 children with Haemophilia (CwH) through education.

- 'Varishthjan Swasthya Sewa Abhiyan' with HelpAge India: Community based health services for destitute aged persons in ONGC’s operational areas all over the country through Mobile Medicare Units.

- 'Gram Sarv Utthan' with SEED (Society for Educational welfare and Economic Development): Community mobilization, in- school intervention, adult education with special focus on female literacy, vocational training to community youth, health and sanitation, utilization of effluent water in 3 villages in Bokaro, Jharkhand.

- Construction of Halls and Kitchen with SVS (Shramik Vikas Sansthan): Financial assistance for construction of additional Hall, staff room & kitchen for the hostel for tribal children in Bhekhadia village, Kawant Tehsil, Gujarat.

- Greening of Southern Ridge, Delhi: Greening an approx area of 1.5 sq. km in Vasant Kunj institutional area near Southern Ridge in association with TERI University.

- TERI-ONGC “Soldiers of the Earth” project: The Soldiers of the Earth campaign is an all encompassing, environmental awareness generation program. The campaign undertaken at Dehradun, Ankleshwar and Nazira is aimed at sens and young adults towards a greener future

- Badhte Kadam: A massive pan-India disability awareness raising program throughout the country.

- Mokshda Green Cremation System: Setting up of 30 energy efficient and environmental friendly green cremation system in association with local municipal bodies at work centers of ONGC.

- "Amulya Dharohar" Conservation of Ahom monuments with ASI & NCF: To support the endeavour of Archaeological Survey of India for conservation and development of four Ahom monuments at Sivasagar Assam.

- 'Ashadeep' - Girl child education program: Aimed to ensure continued schooling of the girl students belonging to economically weaker sections of society with observable improved learning levels of the support receiving students.

- Project Saraswati with NGRI: Exploring deep underground water resources in Rajasthan to provide new sources of ground water in the desert / drought prone areas with possible scope for long distance recharge.

30. Directors' Responsiility Statement

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2011 and of the profit of the Company for the year ended on that date;

(iii) The Directors have 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; and

(iv)The Directors have prepared the annual accounts of the Company on a ‘going concern’ basis.

31. Corporate Governance

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by the various stakeholders. The practices evolve around multi-layered checks and balances to ensure transparency.

In terms of Clause 49 of the Listing Agreement, a report on Corporate Governance for the year ended 31.03.2011, supported by a certificate from the Company’s Auditors confirming compliance of conditions, forms part of this Report.

Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance which were earlier voluntary, have been made mandatory from May 2010. ONGC has implemented the DPE guidelines to the maximum extent possible except with regard to appointment of requisite number of Independent Directors, which is being followed up with the Ministry of Petroleum & Natural Gas.

Your Company has voluntarily got its Secretarial Compliance Audit conducted for the financial year ended 31st March, 2011 from M/s AN. Kukreja & Co., Company Secretaries in whole-time practice; their report forms part of this Annual Report.

In line with global practices, your Company has made all information, required by investors, available on the Company’s corporate website www.ongcindia.com/investercenter.asp.

Apart from the mandatory measures required to be implemented as a part of Corporate Governance, ONGC has gone the extra mile in this regard for the benefit of the stakeholders :

(a) Whistle Blower Policy: A Whistle Blower Policy has been implemented and is functional from 1st December, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is available to all employees of the Company and has been uploaded on the intranet of the Company.

(b) Annual Report on working of the Audit & Ethics Committee : With a view to apprise the Board of the working of the Audit & Ethics Committee during the year, annual report on the working of the Audit & Ethics Committee for FY ’10 and FY ’11 has been prepared and will be put up to Board for its information. This is in line with the recommendation of the C&AG.

(c) MCA Voluntary Guidelines on Corporate Governance: ONGC has implemented the voluntary guidelines on Corporate Governance issued by Ministry of Corporate Affairs to the extent feasible and within the competency domain of the management.

(d) Enterprise-wide Risk Management (ERM) framework: In line with the requirements of Clause 49 (of the Listing Agreement) your Company has developed a comprehensive Enterprise-wide Risk Management (ERM) framework. Under the framework Risk Register portfolio has been compiled and an ERM Policy has been firmed up. The Risk Register and the draft Risk Management policy of ONGC has been reviewed by the Audit and Ethics Committee and approved by the Board of Directors. The ERM framework has been rolled throughout the organization and the risk policy adopted by the company is being displayed at all the Assets/Basins/Plants/Institutes across all the locations of ONGC. The risk policy of ONGC is stated below:

“ONGC shall identify the possible risks associated with its business and commits itself to put in place a Risk Management Framework to address the risks involved on an ongoing basis to ensure achievement of the business objectives without any interruptions.

ONGC shall optimize the risks involved by managing their exposure and bringing them in line with the acceptable risk appetite of the company”.

The risk reporting structure has already been put in place and all the stakeholders are being trained to enumerate risks in their functional area. The Risk Management Cell is receiving reports from the various functional areas. The Risk Management Committee is reviewing the same on a periodical basis.

32.Statutory Disclosures

Section 274(1)(g) of the Companies Act, 1956 is not applicable to the Government Companies. Your Directors have made necessary disclosures, as required under various provisions of the Act and Clause 49 of the Listing Agreement.

Particulars of Employees

As per Notification No. GSR 289(E) dated 31st March, 2011 issued by the Ministry of Corporate Affairs, amending the provisions of the Companies (Particulars of Employees) Rules, 1975 issued in terms of section 217(2A) of the Companies Act, 1956, it is not necessary for Government companies to include the particulars of employees drawing salaries of Rs. 60 lakhs or more per annum, employed throughout the financial year or, Rs. 5 lakhs per month, if employed for part of the financial year. As your company is a Government company, the information has not been included as a part of the Directors’ Report.

33.Energy Conservation

The information required under section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is annexed as Annexure D.

34.Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s Arun K. Agarwal & Associates, M/s Kalyaniwalla & Mistry, M/s S. Bhandari & Co, M/s Ray and Ray and M/s M. Kuppuswamy PSG & Co, Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2010-11. The Statutory Auditors have been paid a remuneration of Rs. 14.25 million for Annual Audit assignment and Certification of Corporate Governance. The above fees are exclusive of applicable service tax and reimbursement of reasonable travelling and out of pocket expenses actually incurred.

35. Auditors' Report on the Accounts

The Comments of Comptroller & Auditor General of India (C&AG) form part of this Report as per Annexure E. There is no qualification in the Auditors Report and there are no supplementary comments by C&AG under section 619(4) of the Companies Act, 1956. Notes to the Accounts referred to in the Auditors Report are self explanatory and therefore do not call for any further comments.

You would be pleased to know that your Company has received ‘Nil’ comments from C&AG and Statutory Auditors for the year 2010- 11. This is the fifth time in a row that the organization has received ‘Nil’ comments and seven times in last eight years.

36.Cost Audit

Pursuant to the directions of the Central Government for audit of Cost Accounts, the proposal for appointment of 7 firms of Cost Accountants as Cost Auditors for auditing the cost accounts of your Company for the year ended 31st March, 2011 was approved by the Central Government and they have accordingly been appointed.

37. Directors

During the year under report, Shri R. S. Sharma, former CMD and Shri D. K. Pande, former Director (Exploration) retired from th

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Mar 31, 2010

Physical Performance: 2009-10

Exploration

In recent years, your Company has intensified its exploratory efforts in domestic as well overseas basins to locate new oil and gas assets. These efforts paid good dividends in terms of new discoveries and reserve accretion. During FY10, your Company made twenty one (21) discoveries in domestic fields operated by it - 14 in onshore and 7 in offshore areas. Out of 21 discoveries 11 were new prospect discoveries and 10 were new pool discoveries.

Highest reserve accretion in last two decades ONGC accreted 82.98 Million Tonnes of Oil Equivalent (MTOE) of Ultimate Reserves (3P) in domestic operated fields - the highest in last two decades. Total reserve accretion in domestic basins has been 87.37 MTOE [including 4.39 MTOE from ONGCs share in Joint Ventures (JVs)]. Initial In-place reserve accretion in domestic basins was 273.42 MTOE including 22.82 MTOE from ONGCs share in JVs.

Reserve Replacement Ratio (RRR)

Reserve Replacement Ratio (RRR) i.e. the ratio of reserve accretion to the production of ONGC in its own domestic fields in this fiscal has been quite impressive at 1.74 for 3P reserves; again the highest in the last two decades. This is the 5th consecutive year ONGC maintained RRR of more than 1 against global feature of lower than 1 registered by large number of oil companies.

Oil & Gas production levels maintained

ONGC has maintained oil and gas production levels despite global trend of declining production from matured oil fields. During FY10, the combined Oil and Gas production of ONGC, including OVL and ONGCs share in PSC-JVs, was 60.93 MTOE; marginally lower as compared to 61.23 MTOE in FY09. Production from overseas fields registered 8.87 MTOE; the highest ever.

Largest oil & gas producer in the country

Oil and gas production from domestic fields, including ONGCs share in PSC JVs has been 52.06 MTOE during FY10 against 52.45 MTOE during FY09. ONGC accounted for 79% of Indias crude oil and 54% of natural gas production during FY10.

Highest-ever production from overseas assets

ONGC Videsh Limited (OVL), the flagship wholly owned subsidiary for overseas operations has now footprints across 15 countries with 39 projects. Since its first hydrocarbon revenue from overseas in 2002- 03 from Vietnam, this year OVL registered highest-ever production of 8.87 MTOE of oil and gas.

First oil from RJ-ON-90/1

Your Company holds 30% participating interest in RJ-ON-90/1 pre-NELP block operated by Cairn Energy India Pty. Ltd. (CEIL). Till date, 25 discoveries have been made in the block with six major discoveries i.e., Mangala, Aishwariya, Raageshwari, Saraswati, Bhagyam and Shakti. Out of these discoveries, Mangala commenced production from 24th August, 2009; and it was dedicated to the nation by Honble Prime Minister Dr. Manmohan Singh on 29th August, 2009 at Barmer,

Rajasthan. Your Company is aggressively pursuing with the Government of India for reimbursement of royalty which it is paying on behalf of the operator.

New Projects

During FY 10 the Board has approved development of various offshore marginal fields viz additional development of D-1 field (13.962 MMT oil by 2025) at an investment oR 21,636.5 Million, development of North Tapti gas field (4.116 BCM gas by 2021) at an investment of Rs. 7,557 Million and development of Cluster-7 fields (9.73 MMt of oil & condensate and 4.52 BCM gas by 2029) at an investment of Rs.32,410 Million.

Your Company is currently implementing redevelopment projects in major fields of Western offshore at an estimated cost of Rs. 182 billion which includes Mumbai High North redevelopment phase II at Rs. 71 billion, Mumbai High South redevelopment phase II at Rs. 88 billion and Heera & South Heera redevelopment at Rs. 23 billion. During FY10, the following new facilities were completed to enhance production:

- Installation of 4 Well Platforms C-39A, C-24, C-39-1 and C-22, along with associated modification and pipelines under C-Series development.

- Installation of Process Platform BCPA-2 with 2nd stage booster compressors for Bassein field (10MMSCMD) and Vasai East process facilities having liquid handling capacity of 12,000 bopd, Gas compression of 2.0 MMSCMD and water injection facility of 47,000 bwpd along with associated modifications under Vasai East development project.

- Three new smart well platforms Rs.-15, Rs.-16 and Rs.-17 along with associated cables, pipelines and topside modification under Mumbai High South Redevelopment Phase II.

During the fiscal 2009-10, your Company brought 5 new marginal fields to production. With this total, 50 such fields are now on stream and these fields produced 2.0691 MTOE of oil and gas during 2009-10.

ONGC bags highest number of blocks in NELP-VIII

You would be pleased to note that in NELP-VIII bid round, ONGC in partnership with its consortia members, submitted the bids for 25 exploration blocks and won 17 of these. In the eight NELP rounds which have been rolled out so far, ONGC has won 50% of the blocks i.e.,121 out of total 242 blocks awarded by the Govt, of India. Your Company now holds 80 NELP blocks (70 as operator) and 62 nomination blocks.

CBM production

Your Company is operating in 5 CBM Blocks i.e., Jharia, Bokaro, North Karanpura and South Karanpura Blocks in Jharkhand and Raniganj Block in West Bengal. CBM production from Pilot Project at Parbatpur commenced from January, 2010. Final Development Plan (FDP) for Jharia block has been submitted for approval of the Government.

Value Added Products

The Hazira Plant of your Company started production of a new product Propane. During FY10,1,316 MTof Propane was sold. During FY10, revenue from export of 1,568 MT of Naphtha has been Rs. 45,770 million; the highest-ever both in terms of quantity exported and revenue earned.

Alternate sources of energy

51 MW Wind power farms which your Company had set up near Bhuj in Gujarat with an investment ofRs. 3,080 million in September, 2009 is already operational. The electricity generated is wheeled through the Gujarat State Electricity Grid for captive consumption by ONGC atAnkleshwar,Ahmedabad,MehsanaandVadodara.

ONGC Energy Centre set up by your Company for holistic research for new and alternate energy sources has been pursuing a number of new projects like. Thermo-chemical generation of hydrogen, Bioconversion of coal/oil to methane gas, Uranium exploration, Solid state lighting, Solar PV Energy Farm, etc.

SCOPE Gold Trophy for achievements in CSR and R&D

You will be delighted to know that your Company received the Gold Trophy for SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness for 2007-2008 and Gold Trophy for R&D, Technology Development and Innovation for the year 2008-09. The awards were presented by H.E. the President of India, Smt. Pratibha Devisingh Patil to CMD, ONGC on Public Sector Day i.e. on 10th April, 2010 at Vigyan Bhawan, New Delhi.

1. Financial Results

Despite volatile markets, your Company has earned a Profit After Tax of Rs.167,676 million (Rs. 161,263 million in 2008-09), up 3.98 %, which is incidentally the highest-ever.

During the year under review, your Company registered Gross revenue ofRs. 619,832 million (Rs. 566,357 million in 2008-09), up 9.44%, by netting off the revenue from trading of products of Mangalore Refinery & Petrochemicals Limited (MRPL), a subsidiary of your Company, amounting to Rs. Nil (Rs. 85,098 million in 2008-09).

Highlights:

Gross Revenue Rs. 619,832 million

Profit after Tax (PAT) Rs. 167,676 million

Contribution to Exchequer Rs.280,988 million*

Return on Capital Employed 50.9%

Debt-Equity Ratio 0.00006:1

Earning Per Shared) 78.39

Book Value Per Share (Rs.) 404

*OID Cess, Excise duty, Royalty, Corporate and Dividend Distribution Tax and Dividend on Government shareholding.

Financial Results (Rs. in million)

2009-10 2008-09

Gross Revenue 619,832 651,455

Gross Profit 396,054 378,292

Less:

Interest 686 1190

Exchange Variation (4,033) 3819

Depreciation 12,312 14,491

Amortisation 89,407 68,281

Depletion 45,302 42,148

Impairment (433) (3110)

Provision/WriteOffs 2,974 11,666

Provision forTaxation (including deferred tax 82,163 228,378 78,544 217,029 liability of Rs. 11,160 million);

Profit After Tax 167,676 161,263

Appropriations Profit & Loss B/F - (1)

Interim Dividend 38,500 38,500

Proposed Final Dividend 32,083 29,944

Tax on Dividend 11,616 11,632

Transfer to General Reserve 85,477 81,188

Total 167,676 161,263

Previous year figures have been regrouped wherever necessary

2. Dividend

Your Company paid an interim dividend of Rs. 18 per share (180%), in December, 2009. The Board of Directors have recommended a final dividend of Rs. 15 per share (150%) making the aggregate dividend at Rs. 33 per share (330%) as compared to Rs. 32 per share (320%) paid in 2008-09. The total dividend will absorb Rs. 70,583 million, besides Rs. 11,616 million as tax on dividend, which is historically the highest dividend payout by the Company.

3. Management Discussion and Analysis Report

In terms of Clause 49(IV)(F) of the Listing Agreement with the Stock Exchanges, a Management Discussion and Analysis Report has been included and forms part of the Annual Report of the Company.

5. Oil & Gas Reserves

Your Company has made voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69). ONGC has added 250.60 MTOE of oil and oil-equivalent gas (O+OEG) initial inplace volume with 82.98 MTOE of O+OEG as the ultimate reserve component during FY 10. The ultimate reserves accretion, including its share in joint ventures is 87.37 MTOE of O+OEG, which is the highest in last two decades.

Ultimate Reserve (3P accretion O+OEG (in MTOE)

Year Domestic ONGCs Total OVLs Total Assets share in Domestic Share in Domestic Reserve Foreign JVs Assets (1) (2) (3)=(1)+(2) (4) (5)=(3)+(4)

2007-08 63,82 -0.34 63.48 46.73 110.21

2008-09 68.90 2.82 7172 135.08 206.80

2009-10 82.98 4.39 87.37 0.35 87.72

6. Statement of Reserve Recognition Accounting

The concept of Reserve Recognition Accounting attempts to recognize income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information:

a) Proved Oil and Gas reserve quantities

b) Capitalized costs relating to Oil and Gas producing activities

c) Cost incurred for property acquisition, exploration and development activities

d) Results of operations for Oil and Gas producing activities

e) Astandardized measure of discounted future net cash flows relating to proved Oil and Gas reserve quantities

Your Company has disclosed information in respect of (a) and (d) above in the Annual Financial Statements. Your Company has made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserve at Annexure-A to this report as Statement of Reserve Recognition Accounting (RRA).

7. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards (AS-1 to AS-29) and Successful Efforts Method as per the Guidance Note on Accounting for Oil & Gas Producing Activities issued by The Institute of Chartered Accountants of India (ICAI) and provisions of the Companies Act, 1956.

8. Internal Control System

The Company has well established and efficient internal control system and procedures. Your Company has already implemented SAP R/3 system for integration of various business processes across the organization. The system has now been upgraded from earlier version of MySAP 4.6C to ECC 6.0. The Company also has well defined financial powers of various executives in its Book of Delegated Powers (BDP). Integrated BDP has recently been revised to bring further delegation. The Company has in-house Internal Audit Department commensurate with its size of operations. Audit observations are periodically reviewed by the Audit & Ethics Committee of the Board and necessary directions are issued whereverrequired.

9. Subsidiaries

(i) ONGCVidesh Limited (OVL)

ONGC Videsh Limited, the wholly-owned subsidiary of your Company for overseas E&P activities, registered satisfactory performance during 2009-10. The company presently has participation in 40 projects in 15 countries.

The Big Deal

A consortium led by OVL signed a contract on 12lh May, 2010 for 40% ownership in the company, formed for developing Carabobo-1-Norte and Carabobo-1-Centra heavy oil blocks in Venezuela. The Corporacin Venezolana del Petrleo ("CVP"), a subsidiary of Petrleos de Venezuela S.A. ("PDVSA"), Venezuelas state oil company, will hold the remaining 60% equity interest. The members of the OVLs Consortium are: OVL (11%), Indian Oil Corporation Limited (3.5%), Oil India Limited (3.5%), Repsol YPF (11.0%) and Petroliam Nasional Berhad ("PETRONAS") (11%). The company will build heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream production facilities are expected to produce around 400,000 barrels per day of extra heavy oil of which approximately 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzotegui State. The license term will be for 25 years with the potential for a 15 year extension.

Out of 39 projects, OVL is operator in 16 projects and joint operator in 6 projects. OVL is currently producing oil and gas from Greater Nile Oil Project and Block 5A in Sudan, Block 06.1 in Vietnam, Al Furat Project in Syria, Sakhalin-I Project and Imperial Energy in Russia, Mansarovar Energy Project in Colombia and San Cristobal Project in Venezuela. Block BC-10 in Brazil commenced production from 13,hJuly, 2009. Block A-1 and A-3 in Myanmar and Carabobo Project in Venezuela are in development phase. North Ramadan Block, NEMED Project in Egypt and Farsi Offshore Block in Iran have discoveries and appraisal work is being carried out. Development for Abu Khashab and Rashid discoveries in Block-24, Syria has been approved by the Syrian Government and further exploration work is ongoing in the block. OVL had completed the Product Pipeline Project for Sudan Government and handed over the pipeline to it in October, 2005 and is currently under lease. The remaining projects are in exploration phase.

During 2009-10, OVLs consolidated share in production of oil and oil equivalent gas (O+OEG), was 8.87 MMT. OVLs consolidated gross revenue during 2009-10 was Rs. 153,828 million (Rs. 184,235 million during 2008-09) down 16.5%. OVLs consolidated Profit After Tax during 2009-10 was Rs. 20,896 million (Rs. 28,067 million during 2008-09) down by 25.55%. The reduction in Gross Revenue and Profit After Tax is mainly on account of fall in crude oil prices in the international markets during 2009-10.

Direct Subsidiaries of OVL:

a) ONGC Nile Ganga B.V. (ONGBV):

ONGBV, a subsidiary of OVL, is engaged in E&P activities in Sudan, Syria, Venezuela and Brazil. ONGBV holds 25% Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 2.126 MMT during 2009-10.

It has 16.66% to 18.75% participative interest in four Production Sharing Contracts (PSCs) in Al Furat Project (AFPC), Syria with its share of oil and gas production of about 0.718 MMTOE during 2009-10.

ONGBV also holds 40% PI in San Cristobal Project in Venezuela with its share of oil production of about 0.704 MMT during 2009-10.

Further ONGBV has 15% PI in BC-10 Project in Offshore Brazil which has commenced production in 2009-10 contributing to OVLs share of 0.192 MMt oil during the year. The current total production of the project is about 80,000 barrels of oil per day.

ONGBV also has 100% PI and is the operator of exploratory blocks BM-S-73 and BM-ES-42 and holds 25% PI in exploratory blocks Block BM-SEAL-4 and Block BM-BAR-1 all located in Deepwater Offshore, Brazil.

b) ONGC Narmada Limited (ONL):

ONL, a wholly-owned subsidiary of OVL is engaged in E&P activities in Nigeria-Sao Tome & Principe, Joint Development Zone (JDZ) with 13.5% PI in deep water exploration Block-2.

c) ONGC Amazon Alaknanda Limited (OAAL):

OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China.

During 2009-10, OVLs share of production in MECLwasabout0.409MMTofoil.

d) Jarpeno Limited:

Jarpeno Limited, a wholly-owned subsidiary of OVL incorporated in Cyprus, acquired Imperial Energy Corporation pic, a UK listed upstream oil exploration and production entity with its main activities in Tomsk region of Western Siberia in Russia, in January, 2009. During 2009-10, Imperial Energys production was about 0.543 MMTofoil.

e) AB Startkapitalet nr 5636 (name changed to Carabobo One AB): OVL holds 11 % in Carabobo project through a mixed company AB Startkapitalet nr 5636 (name changed to Carabobo One AB).

Joint Venture of OVL:

f) ONGC Mittal Energy Limited (OMEL)

OVL along with Mittal Investments Sari (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS hold 98% equity shares of OMEL in the ratio of 49(OVL): 49(MIS) with balance 2% shares held bvSBI

Capital Markets Ltd. OMEL holds 45.5% and 64.33% PI in exploration Blocks OPL 279 and OPL 285 respectively in Nigeria. OMEL also holds 1.11 % Class-C shares in ONGBV exclusively for AFPC Syrian Assets; such investment being financed by Class-C Preference Shares issued by OMEL in the ratio of 51:49 to OVL and MIS respectively.

(ii) Mangalore Refinery & Petrochemicals Limited (MRPL)

Your Company continues to hold 71.62% equity stake in MRPL, which has put in a commendable all-round performance, despite downturn during 2009-10.

Highlights

- Refinery crude thruput-12.50 MMT.

- Turnover-Rs. 360,809 million.

- Profit After Tax - Rs. 11,124 million.

Keeping in view its plans to make investments in various projects, a dividend of 12% has been recommended by its Board. MRPL has

successfully completed the turnaround of the 6MMTPA unit as per schedule and also revamp of Gas Oil Desulphurisation unit. The distillate yield was highest ever 72.8% at an operating level of 12.5 MMTPA. The domestic dispatches were highest during the FY 2009- 10. MRPL received the first parcel of "Mangala" crude from the Rajasthan oil field of ONGC and Cairn on 9,h October, 2009. MRPL has achieved "Excellent" performance results under the MOU with ONGC, its holding company. MRPL achieved its lowest ever energy index in terms of MBTU7 BBL/ MRGF (MBN) of 58.27 during the year. The excellent operating, production and safety standards maintained by its Refinery have enabled MRPL to achieve remarkable energy saving and also an accident-free year. ICRA has reaffirmed their Issuer rating oflr AAA to MRPLfor lowest credit risk. CRISIL issued rating of Cr AAA to MRPL indicating highest safety.

It bagged the following awards and accreditations during the year:

- Winner in the Most Safe Refinery in last three years and runner up in Refineries categories of OISD awards for the year 2008-09.

- Jawaharlal Nehru Centenary Award 2008-09 - Joint 1 st Prize in Specific Energy Consumption Performance amongst all Refineries in Public Sector.

- Superstar Achiever Award - 2008 for best export performance from Kanara Chamber of Commerce and also State Level Export Award for the Year 2005-06 and 2006-07 from Govt.ofKamataka.

Direct Marketing

Direct marketing sales of MRPL registered an overall growth of 3% covering products Bitumen, Furnace Oil, Naphtha, Mixed Xylene, LSHS and Sulphur, with sales of 800 TMT in 2009-10. MRPL Shell Aviation Fuel Services Private Limited (a Joint Venture Company of MRPL and Shell Global) has made good progress in marketing of ATF to domestic airlines at Bangalore and Hyderabad airports and is likely to commence operation at Mangalore airport shortly.

Implementation of the Phase III Refinery Project with a project cost of Rs. 121,600 million, was on schedule during the year 2009-10. With a view to add value to the propylene, implementation of Polypropylene unit at a cost of Rs. 18,030 million has been approved. A contract for construction of ISBL facility has been placed on EIL for execution under open book execution method. Your Company has approved to extend a loan facility of Rs. 50,000 million for part financing the projects. OIDB has also sanctioned a loan of Rs. 2,000 million for the projects.

10. Exemption in respect of Annual Report of Subsidiaries and Consolidated Financial Statement

In terms of approval granted by the Central Government under Section 212(8) of the Companies Act, 1956 copies of the Balance Sheets, Profit and Loss Accounts, Reports of the Board of the Directors and Reports of the Auditors of the subsidiary companies have not been attached to the Accounts of the Company. The Company will make these documents/details available upon request by any member of the Company interested in obtaining the same. Annual Reports of MRPL and OVL are available on website www.mrpl.co.in and www.ongcvidesh.com respectively.

In accordance with the Accounting Standard (AS)-21 on "Consolidated Financial Statements" read with AS-23 on "Accounting for Investments in Associates" and AS-27 on "Financial Reporting of Interests in Joint Ventures", audited Consolidated Financial Statements for the year ended 31st March, 2010 of the Company and its subsidiaries form part of the Annual Report.

11, Joint Ventures/ Associates

(i) ONGC Tripura Power Company Limited (OTPC)

ONGC has promoted OTPC with envisaged equity stake of 50% alonq with Govt of Tripura (0.5%) and IL&FS (26%) to set-up 726.6 MW (363.3 x 2) gas based Combined Cycle Power Plant (CCPP) at Pallatana in Tripura to monetize its idle gas assets in Tripura. Various linkages like gas supply by ONGC and power off-take by NE states have been finalized. The JV company has also tied up debt for the project with Power Finance Corporation Limited. Bharat Heavv Electricals Limited has been enaaaed as EPC aaencv for completion of Generation Project on turnkey basis. The first phase of the project is likely to be completed by December, 2011.

(ii) ONGC Petro-additions Limited (OPaL)

Your Company has promoted a JV company "ONGC Petro-additions Limited" (OPaL) with 26% equity stake along with GAIL (19%) and Gujarat State Petroleum Corporation Ltd (GSPCL) (5%) to implement a mega petrochemical complex comprising of 1.1 MMTPA ethylene Cracker and global scale polymer units within Dahej SEZ as a step towards downstream integration. All major statutory approvals like Environmental Clearance from MoEF, SEZ Unit approval etc. have been obtained and major LSTK contracts relating to site infrastructure development, dual feed cracker contract, technology licensor(s) for downstream polymer units have been awarded. M/s EIL has been engaged as the PMC of the project.

(iii> Mangalore Special Economic Zone Limited (MSEZ)

ONGC with 26% equity stake in MSEZ along with KIADB (23%) and IL&FS+KCCI (51 %), is promoting another SEZ in coastal Mangalore. Ministry of Commerce & Industry has formally notified to set up a Petro-chemical Specific SEZ in 1453 acres of land. MSEZ has allotted requisite land to ONGC Mangalore Petrochemical Ltd, a company promoted by ONGC, for setting up an aromatic based petrochemical unit. MSEZ has signed a Co-developer agreement with Indian Strategic Petroleum Reserves Limited (ISPRL) to develop a free trade zone for warehousing of Strategic Crude Reserve. Resettlement and Rehabilitation work of Project Displaced People is in proqress over 136 acres of land. Requisite infrastructure like water supply system, pipe-line corridor etc. is under implementation. (iv) ONGC Mangalore Petrochemicals Limited (OMPL)

ONGC has promoted OMPL with 46% equity participation, along with MRPL (3%) for setting up manufacturing facilities for 0.92 MMTPA Para-Xylene and 0.14 MMTPA Benzene from MRPLs aromatic streams in Mangalore SEZ as value addition project. The project is under implementation. Contracts relating to project management, technology licensor and site grading have been awarded while LSTK contract for process packages are underfinalization. Debt syndication process has been completed and Rupee term loan agreement with bankers signed.

(v) ONGC TERI Biotech Limited (OTBL)

OTBL is a Joint Venture company of ONGC, incorporated on 26 March, 2007, with The Energy and Research Institute (TERI). The JV has been promoted for addressing the requirement of Bioremediation of oily sludges, Microbial Enhanced Oil Recovery, prevention of wax deposition bacteria in tubulars, flow assurance of line pipes for E&P operations. Apart from ONGC, OTBL is bagging contracts for application of above technologies from other companies like Oil India Limited, Railways, Refineries, private companies etc.

(vi) Petronet MHB Limited (PMHBL)

PMHBL is a JV company of ONGC (28.766%), HPCL (28.766%) and PIL (7.898%). Balance 34.57% of equity is held by the leading banks. It owns and operates a multiproduct pipeline to transport MRPLs products to hinterland of Kamataka. Maintaining its turnaround trend, PMHBL, as per unaudited results for the year 2009-10, has made a net profit of Rs. 50 million on a throughput of 2.53 MMT against Net profit of Rs. 20 million with throughput of 2.45 MMTduring the year2008-09.

(vii) Petronet LNG Limited (PLL)

ONGC has 12.5% equity stake in PLL, identical to similar stake by other Oil PSUs co-promoters viz., IOCL, GAIL and BPCL. PLL has started commissioning of Dahej LNG terminal of 10 MMTPA capacity and also commenced construction of LNG Receiving and Re-gasification Terminal of 5.0 MMTPAatKochi. The turnover of PLL during 2009-10 was Rs. 106,491 million (previous yearRs. 84,287 million) and net profit wasRs. 4,045 million (previous yearRs. 5,184 million). PLL has declared a dividend of 17.5%, same as the previous year.

(viii) Pawan Hans Helicopters Limited (PHHL)

The Company has 21.5% equity stake in PHHL with balance 78.5% equity with the Government of India. PHHL is one of Asias largest helicopter operators having a well balanced operational fleet of 36 helicopters. It provides helicopter support for ONGCs offshore operations. PHHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC. The net profit of PHHL for the year 2008-09 was Rs. 251.20 million and it paid a dividend of 10%. The accounts of PHHLfor 2009-10 are underfinalisation.

(ix)DahejSEZ Limited (DSL)

Your Company with 23% equity stake along with Gujarat Industrial Development Corporation (26%) is developing a multi-product

SEZ at Dahej in coastal Gujarat over 1717 hectares of land through an SPV "Dahej Special Economic Zone Ltd". SEZ has formally been approved by Ministry of Commerce & Industry and Gazette notification issued. This SEZ, now declared as Petroleum, Chemical, Petrochemical Investment Region (PCPIR) by Government of India, is operational since September 2009. Environment clearance from Ministry of Environment & Forest (MoEF) was received on 17th March 2010. About 90% of the saleable land has been allotted to prospective unit holders.

12. Other Projects / Business initiatives

(a) C2-C3-C4 Extraction Plant;

ONGC is setting up a C2-C3-C4 Extraction Plant at Dahej using LNG from PLL as feed stock. The plant is nearing mechanical completion with overall progress of 98.24% as on 31sl March, 2010.

(b) Partnerships for growth

(i) ONGC led Consortium signs agreements for sourcing LNG from Iran

ONGC/OVL, in association with Hinduja Group and Petronet LNG have entered into agreements with Iranian authorities on 1st December, 2009 at New Delhi for participation in development of gas fields and liquefaction facilities in Iran. Indian participation would entitle supply of LNG up to a minimum of 6 MMTPAon long term basis.

(ii) Moll with M/s Sistema, Russia

OVL entered into a non-exclusive Memorandum of Understanding (MoU) on 8lh December, 2009 at Moscow with M/s Sistema, a leading diversified industrial group of Russia to explore the possibilities of jointly studying and participating in attractive oil and gas assets in Russia and third countries.

(iii) MoU with ENARSA, NOC of Argentina

OVL signed an MoU with ENARSA, the national oil company of Argentina for cooperation in E&P ventures in Argentina, India and other countries on 14th October, 2009 in New Delhi in presence of H.E Dr. Cristina Fernandez de Kirchner, President of

Argentina and Honble Prime Minister c India, Dr. Manmohan Singh.

(iv) MoU with Bharat Petroleum Corporation Limited (BPCL)

ONGC executed an MoU with BPCL on 23,d February, 2010 for exploring opportunities in downstream gas business such as participation in CGD networks, laying natural gas pipelines, marketing of natural gas and CNG compression for developing CNG corridors across the state and national highways and for other mutually agreed business.

(v) MoU with GAIL India Limited

The MoU executed with GAIL for mutual co-operation In the areas of Natural Gas Pipelines, Transmission and Marketing business has been extended for two years w.e.f. 24lh July, 2009

(vi) MoU with FMC Technologies (S) Pte Ltd, Singapore

ONGC and FMC Technologies (S) Pte Ltd, Singapore signed an MoU on 14th July, 2009 at New Delhi to pursue collaboration and competence enhancement in area of deepwater development.

13. Information Technology

Project ICE

Project ICE, the ERP based business portal of ONGC was upgraded from MySAP 4.6c to ECC 6.0 to leverage the new functionalities of the latest ERP system consisting of Production Revenue Accounting (PRA), Governance, Risk & Compliance (GRC), Master Data Management (MDM), Identity Management (IDM), Occupation Health (OH), Mobile Asset Management. System based processes for Performance Related Pay (PRP), Perquisites and Online Claims and re-imbursements have now been enabled in totality.

E&P Disaster Recovery Server

E&P Document Management Disaster Recovery Server established at Vadodara was inaugurated on 10lh November, 2009. With this, ONGCs efforts to create an online Central Repository of all accumulated intellectual assets has now been completed.

14. Health, Safety & Environment (HSE)

Your Company has implemented globally recognized QHSE management systems conforming to requirements of ISO 9001, OHSAS 18001 and ISO 14001 at ONGC facilities and certified by reputed certification agencies at all its operational units. Surveillance Audits for sustaining HSE accreditation was carried out in 402 units during the year. Corporate guidelines on incident reporting, investigation and monitoring of recommendations was developed and implemented for maintaining uniformity through out the organization inline with international practice.

Corporate Disaster Management Plan (CDMP) and guidelines have been developed for uniform disaster management all across ONGC. Your Company has also developed Occupational Health physical fitness criteria for employees deployed for offshore operations. Occupational Health (OH) module has now been populated on SAP system.

Ringal Plantation: Sustaining fragile ecosystem of Himalayas is one of the objectives underlined in National Action Plan on Climate Change launched by Honble Prime Minister. Ringal has high carbon sequestration potential, is fodder for musk deer and has potential to provide employment opportunity to local people. In the first phase, 338,000 ringal plants have been planted in Joshimath and Kedarnath forest area in 125 hectare land during 2008-09. In the second phase, plantation of another 400,000 ringal saplings are envisaged in 160 hectares area of upper Himalayas.

Mangrove Plantation: Mangrove plantation has been undertaken by ONGC along the Dhadar river estuary in Gandhar area of Gujarattoprotectfloodingofwateranddegenerationofnearbylandareas. Mangrove plantation on the shore line of Dhadar River in Gandhar area has been intensified. One of the important components of this project is spreading awareness about mangrove plantation in urban and coastal rural areas of Gujarat and Maharastra.

15. Clean Development Mechanism (CDM)

ONGCs 5,u and 6lh Clean Development Mechanism (CDM) projects namely - Energy Efficiency in Amine circulation pumps at Hazira and 51MW wind power project at Gujarat, were registered with United Nations Framework Convention on Climate Change (UNFCCC) on 23rd Sept 2009 and f March 2010 respectively. The projects are estimated to earn annual Certified Emission Reduction (CER) of 85,762 and 4,043 respectively. Expected annual CERs earned by ONGC is about 210,000. In addition, two more CDM projects, viz Gas Flaring Reduction at Jorhat and Green Building project at Delhi have been successfully validated during the year. The total expected CERs from these two projects will be around 28,000 per annum.

ONGCs first CDM project, "Waste heat Recovery Project at Mumbai High" has been successfully verified and the United Nations Framework Convention on Climate Change (UNFCCC) issued the first set of Certified Emission Reduction (CERs) for this project on 18th March 2010. With this issuance, the decks are clear for ONGC to trade and earn revenues from CDM projects.

16. Human Resources

You are aware that your Company has vast pool of skilled and talented professionals-the most valuable asset for the company.

Your Company continued to extend several welfare benefits to its employees and their families by way of comprehensive medical care, education, housing and social security. During the year 2009-10, your Company implemented various new and revised welfare policies for its employees. 75 employees were released under the Voluntary Retirement Scheme during the year. The Human Resource value of the employees based on "Lev and Schwartz" model is enclosed at Annexure B.

Pay Revision of Executives

Ministry of Petroleum and Natural Gas issued Presidential Directives to implement revision of pay and allowances of Board level and below Board level executives in your Company dated, 24th April, 2009. Subsequently, revision of pay scales for executives w.e.f. 1st January, 2007 and revision of perquisites and allowances for executives w.e.f. 26th November, 2008 were implemented in your Company in June, 2009 and February, 2010 respectively.

Wage revision of unionised staff

The Unions had submitted their charter of demands in 2007 and a working group comprising representatives of Unions and the Management was constituted. The working group held three meetings before pay revision guidelines for executives were issued by DPE. Thereafter, the Unions submitted the modified charter of demands in October, 2009. The negotiations on the modified charter of demands have started and two meetings of the working group took place thereafter where issues have been discussed threadbare and certain issues have been clarified.

17. Employee Welfare Trusts

Your Company has established the following major Trusts for welfare of the employees:

- Employees Contributory Provident Fund (ECPF) Trust, managing Provident Fund accounts of employees of your Company.

- The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pension scheme of the employees.

- The Composite Social Security Scheme (CSSS) formulated by your Company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. Families of deceased employees get a financial assistance under the scheme ranging between Rs. 1.5 million to Rs. 2.0 million.

- ONGC Sahayog Trust has been created for welfare of secondary workforce or their heirs, who are in financial distress. Gratuity Fund Trust has been created for payment of gratuity with provision of Gratuity Rules.

- Your Company implemented the Employees Pension Scheme (EPS 1995), retrospectively w.e.f. 16lh November, 1995.

Your Company implemented a single integrated seamless computerised accounting system for all welfare trusts pertaining to investments, accounts, settlement and contribution etc. Employee accounts are now maintained on the new system, duly reconciled and updated, and can be viewed by the employees themselves on Companys intranet. Almost all payments are made to the members through e-payment mechanism.

Implementation Of Government Directives For Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Caste (SC) and Scheduled Tribe (ST) employees were 15.80% and 8.53% respectively as on 1sl April, 2010.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their upliftment in and around its operational areas:

i) Annual component plan:

An amount ofRs. 30 million is distributed to various work centres of ONGC for implementation of welfare schemes. This fund is especially meant for providing help and support in areas like Education and training, Community development, Health care, etc.

ii) Scholarship to SC and ST meritorious students:

Your Company spent Rs. 4.92 million for supporting 100 students of the SC and ST community for pursuing higher professional courses at different recognized institutes and universities.

18. Industrial Relations

Your Company took structured initiatives to maintain harmonious Industrial Relations in the organization. Pursuant to the strike resorted to by the office bearers of ASTO (Association of Scientific and Technical Officers) in January, 2009, the recognition to ASTO was withdrawn. A Code of Conduct was framed and adopted for regulating the relations between the Officers Association and the Management of your Company, which inter-alia, lays down a framework for bilateral resolution of all issues and disputes. Further, a new policy on recognition of Officers Association incorporating the Code of Conduct was issued with the aim to bring in reforms through administrative decisions.

19. Grievance Management System

Your Company provides an easily accessible mechanism to the employees for redressal of their grievances, either through informal or formal channels. All key executives of your Company have designated a publicized time slot, thrice a week, to meet public representatives for speedy redressal of their grievances. Your Company has also approved creation of a single window front office at all work-centres. An officer not below Chief Manager level is responsible for ensuring accessibility and responsiveness to public grievances.

20. Right to Information Act, 2005 (RTI Act)

An elaborate mechanism has been set up throughout the organisation to deal with the requests received under the RTI Act. During the year, 701 requests were received, out of which information was provided in respect of 600 requests and 2 cases were transferred to other public authorities. 91 requests were rejected. 8 applications were pending for supply of information as on 315t March, 2010 and these have been processed later on. Further, against a total of 152 appeals dealt with during the year, 68 were rejected and the balance 54 appeals were accepted and 30 appeals were pending as on 31stMarch, 2010 which have been dealt with later on.

21. Implementation of Official Language Policy

During the year, a series of initiatives were undertaken for promotion and propagation of Rajbhasha in official communication. Literary works in official language continued to be financially supported by your Company. In addition, all inductees at the executive level were exposed to the Official Language Policy of the Govt, of India. Your Company also contributed actively in publishing the bilingual Petroleum Terminology, an initiative of the Ministry of Petroleum and Natural Gas and in effective implementation of the Hindi Teaching Scheme of Govt, of India at all its regional work centres. Your company received appreciation from the Government of India for excellent progress of implementation of Official language directives.

22. Human Resource Development

32,978 ONGCians (as on 31st March, 2010) dedicated themselves for the excellent performance of your company during the year. Your Company believes in and acts on the premise that human capital is the vital source of competitive advantage. Toward this end, your Company initiated several path breaking measures listed below to foster development of its human capital.

a. Performance Management System and Performance Related Pay

Your Company, in line with the DPE Guidelines is devising a robust performance management system which is effective in identifying and rewarding high performers. As part of the process, the performance appraisal system has been completely e-enabled. To strengthen transparency in the system performance ratings of the executives have been disclosed to them. Incentive payments for the year 2007-08 and 2008-09 were made during the year to the executives of your Company based on the MoU rating of the Company and the individuals performance.

b. Training

During the year, ONGC conducted various training programmes for its executives and staff spanning 140,510 training man days. His Excellency Dr. A.P.J. Abdul Kalam, Former President of India launched the Centre for Creative Leadership at ONGC Academy, Dehradun on 30th May, 2009.12 "Orientation Programme on Creative Leadership" involving 309 officers have been conducted at different work centres targeting young corporate level officers through reputed management institutes of the country such as Indian Institute of Management and Admininstrative Staff College of India, Hyderabad. In addition, leadership development is the focus of a continuing programme for senior officers through Indian School of Business, Hyderabad.

c. New Initiatives

- An Employee Engagement Survey was carried out in your Company during the year with the help of a globally renowned consultant in which over 7,000 employees participated.

- To embed the guru-shishya ethos in your Company, a total of 36 senior level executives were trained as Coaches and 45 as Mentors during the year. Fresh joining inductees are being provided the guidance of such mentors for their seamless integration into your Company.

- Your Company is utilizing Assessment and Development Centres as an evaluating tool to assess potential of middle level managers and utilizing the assessment to impart Advanced Management Training to the high potential executives. During the year, 240 DGMs were assessed utilizing this methodology.

- Multi-Disciplinary Team working, which is the essence of functioning of your company, was strengthened during the year with the aim to make it more effective and productive by engaging globally reputed consultants. Several recommendations of the consultants have been implemented with promising results and the effort is on to motivate more and more employees to adapt to these systems.

23. Accolades

Consistent with the trend in preceding years, your Company, its various operating units and its senior management officials have been in receipt of various awards and recognitions. Details of such accolades are placed at Annexure "C

24. Sports

Your Company presently has around 170 sportspersons, including 123 international level performers, on its rolls who represent the Company in different games in addition to around 100 sportspersons on scholarship. Your Company sponsored mega sporting events like 2nd ONGC Nehru Cup International Tournament 2009 and World Snooker Championship. ONGCian Shri Pankaj Advani won his third Asian Billiards title in April, 2009 and created history by winning his maiden World Professional Billiards Championship in 2009. ONGCians Ms. Sinimole Poulose and Shri Gautam Gambhir were conferred with Arjuna Award in recognition of their achievements in athletics and cricket respectively. Shri Gautam Gambhir was also ranked No. 1 batsman in ICC Test world rankings. Shri Chetan Anand won the Dutch Open Grand Prix badminton Tournament in October, 2009 and also the Gold medal in SAF Games held at Dhaka, Bangladesh in February, 2010. Shri Rupesh Kumar finished Runners up in Australia Open Grand Prix badminton Tournament held in July, 2009. Shri K. Sasikiran was the member of the Chess team that won Bronze medal in World Team Championship at Bursa in January, 201 Of Ms. Koneru Humpy won the 1sl place in Fide World Womens Grand Prix Cycle event at Turkey in March, 2010.

Your Company maintained its supremacy in Petroleum Sports Promotion Board tournaments. During the year 2009-10, it has accumulated record breaking 176 points way ahead of other member companies.

25. Women Empowerment

Women employees constituted 6.1% of ONGCs workforce. During the year, programmes for empowerment and development, including programme on gender sensitization was organized. Your Company actively supported and nominated its lady employees for programmes organised by Women in Public Sector(WIPS) and Women in Leadership Roles.

26. Corporate Social Responsibility (CSR)

During the year, your Company operationalised the increase in its commitment from 0.75% to 2% of net profit for its Corporate Social Responsibilities (CSR) and focused on reaching out to the society through sustainable projects with active participation of the stakeholders. Twelve major focus areas of CSR activities were identified. Your Company is committed to follow the Guidelines on CSR issued by the Department of Public Enterprises. Major CSR Projects launched during the year are as follows: - Greening Initiative of the Southern Ridge, New Delhi: The initiative envisages greening an approximate area of 1.5 sq.kms in and around the upcoming ONGC building (Rajiv Gandhi Urja Bhavan) and TERI university campus situated at Institutional Area, Vasant Kunj, New Delhi.

TERI-ONGC "Soldiers of the Earth" project: The

Soldiers of the Earth campaign is an all encompassing, environmental awareness generation programme. The campaign is aimed at sensitizing children and young adults towards a greener future.

Skill based vocational computer training: Setting up and running of five centres named as Gandhi Institute of Computer Education & Information Technology at ONGC work centres at Dehradun, Sibsagar, Mehsana, Karaikal and Rajahmundry, for provision of free job/ entrepreneurship oriented computer education to youth belonging to marginalized sections of the society through institutes run by Bharatiya Vidya Bhavan.

Asmita: Educating youth, rediscovering pride in Indias heritage: Production of a series of 13 films of 45-minutes duration each every year (for the next 5 years) on select topics of Indias cultural heritage jointly with Surabhi Foundation and TERI for connecting the audience to Indias cultural roots to evoke a sense of national pride.

Ashadeep - Girl child education programme: Aimed to ensure continued schooling of the girl students belonging to economically weaker sections of society, with observable improved learning levels of the support receiving students. This is a unique and laudable initiative taken by ONGC Officers Mahila Samiti.

Multi-specialty hospitals: Two multi-specialty hospital on P-P-P model proposed at Sivasagar, Assam and Ankleshwar, Gujarat.

Support to Hemophilia Federation (India): Providing support for education of children with Hemophilia. Hemophilia is a genetically transmitted, life-long, life threatening bleeding disorder.

Mobile Medicare Units: Implementation of Mobile Medicare Unit Project through Help-Age India for community based health care services to destitute older persons and other vulnerable citizens in 20 locations across the country.

Renewable energy for solar water pumping and home lighting: Providing lighting and water to poor households in Gujarat and Tamil Nadu.

Mokshda Green Cremation System: Setting up energy efficient and environmental friendly green cremation system in association with local municipal bodies at work centers of ONGC.

Conservation of ancient monuments: To support Archaeological Survey of India in its endeavour for the conservation and development of the Ahom monuments at SivasagarAssam.

Directors Responsibility Statement

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2010 and of the profit of the Company for the year ended on that date;

(iii) The Directors have 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; and

(iv) The Directors have prepared the annual accounts of the Company on a going concern basis.

28. Corporate Governance

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by the various stakeholders. The practices evolve round multi-layered checks and balances to ensure transparency. .

In terms of Clause 49 of the Listing Agreement, a report on Corporate Governance for the year ended 31.03.2010, supported by a certificate from the Companys Auditors confirming compliance of conditions, forms part of this Report.

Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance which were earlier voluntary, have been made mandatory from May, 2010. ONGC has implemented the DPE guidelines to the maximum extent possible except with regard to appointment of requisite number of Independent Directors, which is being followed up with the Ministry of Petroleum & Natural Gas.

Your Company has voluntarily got its Secretarial

Compliance Audit conducted for the financial year ended 31st March, 2010 from M/s A.N. KukrejaS Co., Company Secretaries in whole-time practice; their report forms part of this Annual Report.

In line with global practices, your Company has made all information, required by investors, available on the Companys corporate website www.ongcindia.com/investercenter.asp.

Apart from the mandatory measures required to be implemented as a part of Corporate Governance, ONGC has gone the extra mile in this regard for the benefit of the stakeholders:

(a) Whistle Blower Policy : A Whistle Blower Policy has been implemented as a voluntary initiative and is functional from f December, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is available to all employees of the Company and has been uploaded on the intranet of the Company.

(b) Annual Report on working of the Audit & Ethics Committee: With a view to apprise the Board of the working of the Audit & Ethics Committee during the year, an elaborate annual report on the working of the Audit & Ethics Committee for FY 10 has been prepared and will be put up to Board for its information. This is in line with the recommendation of the C&AG. The first Annual Report of the Audit & Ethics Committee forthe FY 09 was compiled and approved by the Committee.

(c) MCA Voluntary Guidelines on Corporate Governance : ONGC has implemented the voluntary guidelines on Corporate Governance issued by Ministry of Corporate Affairs to the extent feasible and within the competency domain of the management.

(d) Enterprise-wide Risk Management (ERM) framework: In response to the increasing need for corporate governance in the wake of several corporate disasters and decline in stakeholder confidence, SEBI set out requirements for Companies, under Clause 49 (of the listing agreement), to create an oversight mechanism to address risks. Accordingly your Company has developed a comprehensive Enterprise-wide Risk Management (ERM) framework. Under the framework Risk Register portfolio has been compiled and an ERM Policy has been firmed up. Risk Management process on pilot scale has been initiated in six representative locations i.e., Mumbai High, Rajahmundry and Assam Assets, Western Onshore Basin, Keshav Dev Malviya Institute of Petroleum Exploration (KDMIPE) and Hazira Plant.

You would be pleased to know that your Company has received Nil comments from C & AG and Statutory Auditors for the year 2009-10. This is the fourth time in a row that the organization has received Nil comments and six times in last seven years.

29. Statutory Disclosures

Section 274(1 )(g) of the Companies Act, 1956 is not applicable to the Government Companies. Your Directors have made necessary disclosures, as required under various provisions of the Act and Clause 49 of the Listing Agreement.

Particulars of Employees

In terms of the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, the names and other particulars of the employees are set out in the annexure to the Directors Report. However, having regard to the provisions of section 219(1 )(b)(iv) of the said Act, the Annual Report excluding the aforesaid information is being sent to all the members of the Company and others entitled thereto. Any member interested in obtaining such particulars may write to the Company Secretary at the registered office of the Company.

30. Energy Conservation

The information required under section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is annexed as Annexure - "D".

31. Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s PSD & Associates, M/s. Padmanabhan Ramani & Ramanujam, M/s Singhi & Co., M/s Kalyaniwalla & Mistry and M/s Arun K. Agarwal & Associates, Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2009-10. The remuneration of the Statutory Auditors for annual audit assignments has been fixed at Rs. 11.75 million. Further a fee ranging between Rs. 10,000 to Rs. 40,000 for each Block (depending upon the quantum of activity in the Block) aggregating to Rs. 2.08 million is being paid to the Statutory Auditors for certification of the accounts of Joint Venture NELP Blocks. In addition Rs. 0.75 million is being paid for certification of compliance of conditions of Corporate Governance. The above fees are exclusive of applicable service tax and reimbursement of reasonable Jravelling and out of pocket expenses actually incurred.

32. AuditorsReport on the Accounts

The comments of the C&AG form part of this Report as Annexure - E. There is no qualification in the Auditors Report and there are no supplementary comments by C&AG under Section 619(4) of the Companies Act, 1956. Notes to the Accounts referred to in the Auditors Report are self- explanatory and therefore do not call for any further comments.

33. Cost Audit

Pursuant to the directions of the Central Government for audit of Cost Accounts, the proposal for appointment of 7 firms of Cost Accountants as Cost Auditors for auditing the cost accounts of your Company for the year ended 31s1 March, 2010 was approved by the Central Government and they have accordingly been appointed.

34. Directors

During the year under report, Shri S. Sundareshan on taking over the charge as Secretary in the Ministry of Petroleum & Natural Gas (MoP&NG) submitted resignation from the Board of ONGC on 4" February, 2010. Subsequently, Shri Sudhir Bhargava, Additional Secretary, MoP&NG, Government of India was appointed as Government director on the Board of ONGC w.e.f 15th March, 2010. Your Directors place on record their deep appreciation for the valuable contributions made by Shri S. Sundareshan during his tenure.

Dr. A K Balyan, Director (HR) on his appointment as MD & CEO of Petronet LNG Limited, resigned from the Board of ONGC and was relieved on 15th July, 2010. Your Directors place on record their deep appreciation for the valuable contributions made by Dr. AK Balyan during his tenure as Director (HR) and in various capacities in ONGC.

The strength of the Board of Directors of ONGC as on 31s1 July, 2010 was 12 Directors, comprising 6 Executive Directors (Functional Directors including Chairman and Managing Director) and 6 Non-Executive Directors comprising 2 Government nominees and 4 Independent Directors.

Pursuant to the provisions of Section 255 and 256 of the Companies Act, 1956 and Clause 104(l) of the Articles of Association of the Company, Shri A K Hazarika, Shri D K Pande and Shri D K Sarraf retire by rotation at the 17th Annual General Meeting (AGM) and being eligible, offer themselves for reappointment.

Shri Sudhir Bhargava, who was appointed as Additional Director after the last AGM, holds office up to the 17th AGM. The Company has received notice in writing from a member pursuant to the provisions of Section 257 of the Companies Act, 1956, proposing his candidature for appointment as Director of the Company liable to retire by rotation.

Brief resume of the Directors seeking Appointment / Re-appointment, together with the nature of their expertise in specific functional areas and names of the companies in which they hold the directorship, number of shares held and the membership/ chairmanship of committees of the Board, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges are given in the notice convening the 17th AGM of the Company, and form part of the Annual Report.

35. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Statutory Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and members of the ONGC Family for their faith, trust and confidence reposed in ONGC.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

On behalf of the Board of Directors

Place: New Delhi (R .S.Sharma)

Date: 2nd August, 2010 Chairman and Managing Director