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-São Tomé & 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 the services of
 ONGC on 31 01.2011. Shri S. V. Rao was appointed as Director
 (Exploration), ONGC on 25.02.2011 and Shri K. S.  Jamestin was
 appointed as Director (Human Resources) ONGC on 25.05.2011 Further,
 with a view to ensure that the Board structure of ONGC conforms to the
 provisions of Clause 49 of the Listing Agreement, the Government has
 appointed Dr D.  Chandrasekharam (on 11.03.2011), Smt. Usha Thorat,
 Prof. Deepak Nayyar and Shri Arun Ramanathan (on 20.06 2011) as Non-
 official Part-time Directors on the Board of ONGC. As a result, the
 Company can now exercise its enhanced powers under the Maharatna
 dispensation.
 
 The Board places on record its deep appreciation for the excellent
 contributions made by Shri R. S. Sharma and Shri D. K. Pande during
 their tenure.
 
 The strength of the Board of Directors of ONGC as on 24.06.2011 is 16
 Directors, comprising 6 Executive Directors (Functional Directors) and
 10 Non-Executive Directors-2 Government nominees and 8 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 S. S. Rajsekar, Shri S. Balachandran and Shri S. Nautiyal retire
 by rotation at the 18th Annual General Meeting and being eligible,
 offer themselves for reappointment.
 
 Shri S. V. Rao, Dr. D. Chandrasekharam, Shri K. S. Jamestin, Smt. Usha
 Thorat, Prof. Deepak Nayyar and Shri Arun Ramanathan who were appointed
 as Additional Directors after the last AGM, hold office up to the 18th
 AGM. The Company has received notice in writing from a member pursuant
 to the provisions of Section 257 of the Companies Act, 1956, proposing
 their candidature for appointment as Directors 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 18th AGM of
 the Company, and form part of the Annual Report.
 
 38. 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                                  (A. K. Hazarika)
 
 Date: 14th July, 2011              Chairman and Managing Director