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Oil and Natural Gas Corporation
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Download Annual Report PDF Format 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '13    Mar 12
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 31 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
Source : Dion Global Solutions Limited
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