முகப்பு  »  நிறுவனம்  »  ONGC  »  மேற்கோள்  »  கணக்கு றிப்புகள்
நிறுவன பெயரின் முதல் சில எழுத்துக்களை நிரப்பி 'கோ' பட்டனை கிளிக் செய்யவும்

Oil And Natural Gas Corporation Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2017

1. Corporate information

Oil and Natural Gas Corporation Limited (‘ONGC’ or ‘the Company’) is a public limited company domiciled and incorporated in India having its registered office at Pandit Deendayal Upadhyaya Urja Bhawan, 5, Nelson Mandela Marg, Vasant Kunj, New Delhi - 110070. The Company’s shares are listed and traded on Stock Exchanges in India. The Company is engaged in exploration, development and production of crude oil, natural gas and value added products.

2. Application of new IndianAccounting Standards

2.1 All the Indian Accounting Standards issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are authorized have been considered in preparing these financial statements.

2.2 In March 2017, Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to the Ind AS 7 ‘Statement of Cash flows’ and Ind AS 102, ‘Share - Based Payment’, which are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS -7, ‘Statement of Cash flows’ and IFRS - 2, ‘Share - Based Payment’ respectively. These amendments are applicable w.e.f. 1stApril, 2017

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

As the Company has no liabilities arising from financing activities presently, hence this amendment has no effect on the financial statements of the Company.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes.

As the Company has not issued any stock options planspresently, hence this amendment has no effect on the financial statements of the Company.

3. Critical Accounting Judgments,

Assumptions and Key Sources of Estimation Uncertainty

Inherent in the application of many of the accounting policies used in preparing the Financial Statements is the need for Management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates and assumptions used.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

Key source of judgments, assumptions and estimation uncertainty in the preparation of the Financial Statements which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of Oil and Gas reserves, impairment, useful lives of Property, Plant and Equipment, depletion of oil and gas assets, decommissioning provision, employee benefit obligations, impairment, provision for income tax, measurement of deferred tax assets and contingent assets and liabilities.

3.1. Critical judgments in applying accounting policies

The following are the critical judgements, apart from those involving estimations (Note 4.2), that the Management have made in the process of applying the Company’s accounting policies and that have the significant effect on the amounts recognized in the Financial Statements.

(a) Determination of functional currency

Currency of the primary economic environment in which the Company operates (“the functional currency”) is Indian Rupee (Rs.) in which the Company primarily generates and expends cash. Accordingly, the Management has assessed its functional currency to be Indian Rupee ( Rs.).

(b) Classification of investment

Judgement is required in assessing the level of control obtained in a transaction to acquire an interest in another entity; depending upon the facts and circumstances in each case, the Company may obtain control, joint control or significant influence over the entity or arrangement. Transactions which give the Company control of a business are business combinations. If the Company obtains joint control of an arrangement, judgement is also required to assess whether the arrangement is a joint operation or a joint venture. If the Company has neither control nor joint control, it may be in a position to exercise significant influence over the entity, which is then classified as an associate.

The Company has 49.36% equity interest in ONGC Petro Additions Limited (OPAL). The Company has also subscribed for 1,922 million share warrants on August 25, 2015 entitling the Company to exchange each warrant with an equity share of face value of Rs.10 each against which Rs.9.75 has been paid.

Further the Company has also entered into an arrangement on July 2, 2016 for backstopping support towards repayment of principal and cumulative coupon amount for compulsory convertible debentures amounting to Rs.56,150 Million and cumulative interest thereon amounting to Rs.16,570.00 Million issued by OPAL.

The Management has however evaluated the interest in OPAL to be in the nature of joint venture as the shareholder agreement between all the shareholders provides for sharing of control of the decisions of relevant activities that require the unanimous consent of all the parties sharing control.

(c) Determining whether an arrangement contain leases and classification of leases

The Company enters into service/hiring arrangements for various assets/services. The determination of lease and classification of the service/hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset’s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

(d) Evaluation of indicators for impairment of Oil and Gas Assets

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in asset’s value, significant changes in the technological, market, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result in significant change in recoverable amount of the Oil and Gas Assets.

(e) Oil & Gas Accounting

The determination of whether potentially economic oil and natural gas reserves have been discovered by an exploration well is usually made within one year of well completion, but can take longer, depending on the complexity of the geological structure. Exploration wells that discover potentially economic quantities of oil and natural gas and are in areas where major capital expenditure (e.g. an offshore platform or a pipeline) would be required before production could begin, and where the economic viability of that major capital expenditure depends on the successful completion of further exploration work in the area, remain capitalized on the balance sheet as long as additional exploration or appraisal work is under way or firmly planned.

It is not unusual to have exploration wells and exploratory-type stratigraphic test wells remaining suspended on the balance sheet for several years while additional appraisal drilling and seismic work on the potential oil and natural gas field is performed or while the optimum development plans and timing are established. All such carried costs are subject to regular technical, commercial and management review on at least an annual basis to confirm the continued intent to develop, or otherwise extract value from the discovery. Where this is no longer the case, the costs are immediately expensed.

3.2. Assumptions and key sources of estimation uncertainty

Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may differ from these estimates.

(a) Estimation ofprovision for decommissioning

The Company estimates provision for decommissioning as per the principles of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ for the future decommissioning of Oil and Gas assets at the end of their economic lives. Most of these decommissioning activities would be in the future, the exact requirements that may have to be met when the removal events occur are uncertain.

Technologies and costs for decommissioning are constantly changing. The timing and amounts of future cash flows are subject to significant uncertainty.

The timing and amount of future expenditures are reviewed at the end of each reporting period, together with rate of inflation for escalation of current cost estimates and the interest rate used in discounting the cash flows. The economic life of the Oil and Gas assets is estimated on the basis of long term production profile of the relevant Oil and Gas asset. The General Consumer Price Index (CPI) for inflation i.e. 3.81% (Previous year 4.83%) has been used for escalation of the current cost estimates and discounting rate used to determine the balance sheet obligation as at the end of the year is 7.12% (Previous year 7.56%), which is the risk free government bond rate with 10 year yield.

(b) Determination of cash generating unit (CGU)

The Company is engaged mainly in the business of oil and gas exploration and production in Onshore and Offshore. In case of onshore assets, the fields are using common production/ transportation facilities and are sufficiently economically interdependent to constitute a single cash generating unit (CGU). Accordingly, impairment test ofall onshore fields is performed in aggregate of all those fields at the Asset Level. In case of Offshore Assets, a field is generally considered as CGU except for fields which are developed as a Cluster, for which common facilities are used, in which case the impairment testing is performed in aggregate for all the fields included in the cluster.

(c) Impairment of assets

Determination as to whether, and by how much, a CGU is impaired involves Management estimates on uncertain matters such as future prices, the effects of inflation on operating expenses, discount rates, production profiles for crude oil, natural gas and value added products. For Oil and Gas assets, the expected future cash flows are estimated using Management’s best estimate of future crude oil and natural gas prices, production and reserves volumes.

The present values of cash flows are determined by applying pre tax-discount rates of 14.88% (previous year 19.06 %) for Rupee transactions and 10.57% (previous year 13.37 %) for crude oil and value added products revenue, which are measured in USD. Future cash inflows from sale of crude oil and value added products are computed using the future prices, on the basis of market-based average prices of the Dated Brent crude oil as per assessment by ‘Platt’s Crude Oil Market wire’ and its co-relations with benchmark crudes and other petroleum products. Future cash flows from sale of natural gas are also computed based on the expected future prices on the basis of the notification issued by the Government of India and discounted applying the rate applicable to the cash flows measured in USD in view of the new pricing guidelines issued by GoI.

The discount rate used is based upon the cost of capital from an established model.

The Value in use of the producing/developing CGUs is determined under a multi-stage approach, wherein future cash flows are initially estimated based on Proved Developed Reserves. Under circumstances where the further development of the fields in the CGUs is under progress and where the carrying value of the CGUs is not likely to be recovered through exploitation of proved developed reserves alone, the Proved and probable reserves (2P) of the CGUs are also taken for the purpose of estimating future cash flows. In such cases, full estimate of the expected cost of evaluation/ development is also considered while determining the value in use.

The discount rates applied in the assessment of impairment calculation are re-assessed each year.

(d) Estimation of reserves

Management estimates production profile (proved and developed reserves) in relation to all the Oil and Gas Assets based on the policies and procedures determined by the Reserves Estimation Committee of the Company (REC). The estimates so determined are used for the computation of depletion and impairment testing.

The year-end reserves of the Company have been estimated by the REC which follows international reservoir engineering procedures consistently. The Company has adopted deterministic approach for reserves estimation and is following Society of Petroleum Engineers (SPE) - 1997 guidelines which defines reserves as “estimated volumes of crude oils, condensate, natural gas, natural gas liquids and associated substances anticipated to be commercially recoverable from known accumulations from a given date forward, under existing economic conditions, by established operating practices, and under current Government regulations.” Volumetric estimation is the main procedure in estimation, which uses reservoir rock and fluid properties to calculate hydrocarbons in-place and then estimate that portion which will be recovered from it. As the field gets matured with reasonably good production history available then performance methods such as material balance, simulation, decline curve analysis are applied to get more accurate assessments of reserves.

The annual revision of estimates is based on the yearly exploratory and development activities and results thereof. New in- place Volume and Ultimate Reserves are estimated for new field discoveries or new pool discoveries in already discovered fields. Also, appraisal activities lead to revision in estimates due to new sub-surface data. Similarly, reinterpretation exercise is also carried out for old fields due to necessity of revision in petro-physical parameters, updating of static and dynamic models and performance analysis leading to change in reserves. Intervention of new technology, change in classifications and contractual provisions also necessitate revision in estimation of reserves.

The Company uses the services of third party agencies for due diligence and it gets the reserves ofits assets audited by third party periodically by internationally reputed consultants who adopt latest industry practices for their evaluation.

(e) Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

4.1 Includes assets pertaining to production and allied facilities as on April 1, 2015 classified as “Oil and Gas Assets”under Property, Plant and Equipment in terms of EAC opinion issued by the Institute of Chartered Accountants of India (iCAI) (Note 56.1).

4.2 The Company has elected to continue with the carrying value of its Oil and Gas Assets recognised as ofApril 1, 2015 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AA of Ind AS 101 except for decommissioning and restoration provision included in the cost of Oil and Gas Assets which have been adjusted in terms of para D21 of Ind AS 101 ‘First -time Adoption of Indian Accounting Standards’ (Note 3.34 (v))

a. Land includes 36 numbers (Previous year 158) of lands in respect of certain units amounting to Rs.88.89 million (Previous year Rs.184.61 million) for which execution of conveyance deeds is in process.

b. Registration of title deeds in respect of 12 numbers (Previous year 12) buildings is pending execution having carrying amount of Rs.61.10million(Previous year Rs.64.94 million).

c. Building includes cost of undivided interest in land.

5.1. Carrying value of Assets pertaining to production and allied facilities as on April 1, 2015 has been reclassified from other Property, Plant and Equipment (PPE) to “Oil and Gas Assets” to reflect the aggregate amount of Oil and Gas Assets.

5.2. The Company has elected to continue with the carrying value of its other Property Plant & Equipment (PPE) recognised as of April 1, 2015 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AA of Ind AS 101 except for decommissioning provision included in the cost of other Property, Plant and Equipment (PPE) which has been adjusted in terms of para D21 of Ind AS 101 ‘First -time Adoption of Indian Accounting Standards’ (Note 3.34 (v)).

6.1 The Company has elected to continue with the carrying value of its Capital Works-in-Progress recognised as of April 1, 2015 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AA of Ind AS 101 except for decommissioning and restoration provision included in the cost of Capital Works-in-Progress which have been adjusted in terms of para D21 of Ind AS 101 ‘First -time Adoption of Indian Accounting Standards’ (Note 3.34 (v)).

6.2 Includes Rs.7,156.89 million (Previous year Nil) in respect of Tapti A series assets and facilities which were a part of the assets of PMT Joint Operation ( JO) and surrendered by the JO to the Government of India as per the terms and conditions of the JO Agreement. During the year these assets and facilities have been transferred by Government of India to the Company free of cost as its nominee. The Company has assessed the fair value of the said assets & facilities at Rs.7,156.89 million based on the valuation report by a third party agency, which has been accounted as Capital work-in-progress with a corresponding liability as Deferred Government Grant (Note 27.1).

While transferring these assets to the Company, the decommissioning obligation has been delinked by Government of India. The same will be considered as decided by the Government of India. However decommissioning provision towards 40% share being partner in the JO is being carried in the financial statements.

7.1 The Company has elected to continue with the carrying value of its Intangible Assets, recognised as of April 1, 2015 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AA of Ind AS 101 ‘First -time Adoption of Indian Accounting Standards’ Standards’ (Note 3.34 (v)).

8.1. The Company had acquired during 2004-05, 90% Participating Interest in Exploration Block KG-DWN-98/2 from M/s Cairn Energy India Ltd for a lump sum consideration of Rs.3,711.22 million which, together with subsequent exploratory drilling costs of wells had been capitalised under exploratory wells in progress. During 2012-13, the Company had acquired the remaining 10% participating interest in the block from M/s Cairn Energy India Ltd on actual past cost basis for a consideration of Rs.2124.44 million. Initial in-place reserves were established in this block and adhering to original PSC time lines, a Declaration of commerciality (DOC) with a conceptual cluster development plan was submitted on December 21, 2009 for Southern Discovery Area and on July 15, 2010 for Northern Discovery Area. Thereafter, in the revised DOC submitted in December, 2013, Cluster-wise development of the Block had been envisaged by division of entire development area into three clusters. The DOC in respect of Cluster II had been reviewed by the Management Committee (MC) of the block on September 25, 2014. Field Development Plan (FDP) for Cluster-II was submitted on September 8, 2015 and the same had been approved by MC on March 31, 2016. Investment decision has been approved by the Company. Work on the block has started and is in progress.

The exploration period of this block was restructured byGovernment upto December 29, 2013 in accordance with the Rig Holiday Policy and further extended to January 25, 2014. Under the new policy framework for relaxation, extensions and clarifications at the development and production stage under the PSC regime notified by MoP&NG vide GO dated November 11, 2014; drilling and testing of appraisal wells were completed. Revised DOC for Clusters I and III were submitted to MC for review on April 27, 2016. The DOC for Cluster-I has been reviewed by MC on December 14, 2016. FDP for Cluster-I is under preparation. Revised DOC of Cluster-III is under review by MC and on completion of review, FDP will be prepared.

In view of the definite plans for development of discoveries in the block, in FY 2015-16, the Company had reversed provision of Rs.15,482.32 million recognised in the past.

9.1.1 The Company has elected to continue with the carrying value of its investments in subsidiaries, joint ventures and associates, measured as per the Previous GAAP and used that carrying value on the transition date April 1, 2015 in terms of Para D15 (b) (ii) of Ind AS 101 ‘First -time Adoption of Indian Accounting Standards’.

9.1.2 ONGC Mangalore Petrochemicals Limited has been classified as subsidiary as the Company holds 48.99% ownership interest and its subsidiary Mangalore Refinery and Petrochemicals Limited holds 51.01%.

9.1.3 Petronet LNG Limited (PLL) was classified as Joint Venture in Previous GAAP, however, in terms of Para 7 of Ind AS 111 “Joint Arrangements”, unanimous consent of all promoters is not required in relevant activities in PLL and therefore PLL is not classified as Joint Venture. Since the Company has significant influence on PLL, the same has been assessed and classified as an Associate.

9.1.4 The Company is restrained from diluting the investment in the respective companies till the sponsored loans are fully repaid as per the covenants in the respective loan agreements of the companies.

9.2.1 The amount of Rs.30.53 million (Previous year Rs.26.05 million) shown as deemed equity investments denotes the fair value of fees towards financial guarantee given for Mangalore Refinery and Petrochemicals Limited without any consideration.

9.2.2 The amount ofRs.5,259.47 million ( Previous year Rs.54,807.29 million) shown as deemed equity investments in respect of ONGC Videsh Limited includes (i) Loan Rs.Nil (Previous year Rs.50,000.00million) which has been converted into equity shares in 2016-17, (ii) Rs.3,674.35 million (Previous year Rs.2,753.34 million) towards the fair value of guarantee fee on financial guarantee given without any consideration and (iii) Rs.1,585.11 million (Previous year Rs.2,053.94 million) towards fair value of interest free loan.

9.2.3 During 2015-16, the Company had subscrib ed Share Warrants of ONGC Petro Additions Limited, entitling the Company to exchange each warrant with Equity Share of Face Value of Rs.10/- each after a balance payment of Rs.0.25/- per equity share within forty eight months of subscription of the Share warrants issued on August 25, 2015.

9.2.4 The Company had entered into an arrangement on July 2, 2016 for backstopping support towards repayment of principal and cumulative coupon amount for compulsory convertible debentures amounting to Rs.56,150.00 million issued by ONGC Petro Additions Limited and interest for the year ending March 31, 2017 amounting to Rs.3,612.06 million

9.2.5 The aggregate investments in each subsidiary, associates and joint ventures is as follows:

10.1 Generally, the Company enters into long-term crude oil and gas sales arrangement with its customers. The average credit period on sales of crude, gas and value added products is 7 - 30 days. No interest is charged during this credit period. Thereafter,interest on delayed payments is charged at SBI Base rate plus 4%-6% per annum compounded each quarter on the outstanding balance.

Of the trade receivables balance as at March 31, 2017 of Rs.54,071.42 million (as at March 31, 2016 of Rs.47,815.95 million; as at April 1, 2015 of Rs.128,226.21 million) is due from Oil Marketing Companies, the Company’s largest customers. There are no other customers who represent more than 5% of the total balance of trade receivables.

Accordingly, the Company assesses impairment loss on dues from Oil Marketing Companies on facts and circumstances relevant to each transaction.

The Company has concentration of credit risk due to the fact that the Company has significant receivables from Oil Marketing Companies. However, these companies are reputed and creditworthy public sector undertakings (PSUs).

10.2 Includes Rs.126.39 million and Rs.91.71 million due from Indian Oil Corporation Limited (IOC) and Numaligarh Refinery Limited (NRL) respectively towards Value Added Tax on discount that could not be adjusted in credit notes in view of Assam VAT amendment Act, 2014. The matter is being pursued with IOC, NRL and Government of Assam.

11.1 Loans to employees include an amount of Rs.0.72 million (As at March 31, 2016 Rs.1.66 million; As at April 1, 2015 Rs.1.04 million) outstanding from Key Managerial Personnel.

The above amount has been deposited with banks under section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipment’s and installations in a manner agreed with Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment etc. This amount is considered as restricted cash and hence not considered as ‘Cash and cash equivalents’.

12.1 During the financial year 2010-11, the Oil Marketing Companies, nominees of the GoI recovered USD 32.07 million (equivalent to Rs.2,079.90 million) ONGC’s share as per directives of GoI in respect of Joint Operation - PannaMukta and Tapti. The recovery is towards certain observations raised by auditors appointed by the Director General of Hydrocarbons (DGH) under Production Sharing Contract (PSC) for the period 200203 to 2005-06 in respect of cost and profit petroleum share payable to GoI. BGEPIL along with RIL (“Claimants”) have served a notice of arbitration on the GoI in respect of dispute, differences and claims arisen in connection with the terms of Panna, Mukta and Tapti PSCs. Since the Company is not a party to the arbitration proceedings, it had requested MoP&NG that in case of an arbitral award the same be made applicable to ONGC also, as a constituent of contractor for both the PSCs. Subsequently, vide letter dated July 4, 2011 MoP&NG has advised ONGC not to participate in the arbitration initiated by RIL and BGEPIL under Panna Mukta and Tapti PSCs. MoP&NG has also stated that in case of an arbitral award, the same will be applicable to ONGC also as a constituent of the contractor for both the PSCs. Pending final arbitral award, the same has been shown as Receivable from GoI under ‘Advance Recoverable in Cash under financial assets -others. (Figures in ‘are restated).

12.2 In Ravva Joint Operation, the demand towards additional profit petroleum raised by Government of India (GoI), due to differences in interpretation of the provisions of the Production Sharing Contract (PSC) in respect of computation of Post Tax Rate of Return (PTRR), based on the decision of the Malaysian High Court setting aside an earlier arbitral tribunal award in favor of operator, was disputed by the operator M/s Cairn India Limited. The Company is not a party to the dispute but has agreed to abide by the decision applicable to the operator. The Company had made an impairment towards the claim made by the GoI in earlier years and the amount of impairment outstanding as at March 31, 2017 is Rs.10,884.73 million (equivalent to USD 167.84 million) after adjustments for interest and exchange rate fluctuations. The GoI had recovered the above amount including interest thereon USD 54.88 million ( Rs.3,558.97 million) from the Company in earlier years which has been carried under Non-Current Financial Assets in the Balance Sheet as at March 31,2017.

In subsequent legal proceedings, the Appellate Authority of the Honorable Malaysian High Court of Kuala Lumpur had set aside the decision of the Malaysian High Court and the earlier decision of arbitral tribunal in favour of operator was restored, against which the GoI has preferred an appeal before the Federal Court of Malaysia. The Federal Court of Malaysia, vide its order dated October 11, 2011, has dismissed the said appeal of the GoI.

The Company has taken up the matter regarding refund of the recoveries made in view of the favorable judgment of the Federal Court of Malaysia with MoP&NG. However, according to a communication dated January 13, 2012 received, MoP&NG expressed the view that ONGC’s proposal would be examined when the issue of ONGC carry under Ravva PSC is decided in its entirety by the Government along with other partners.

In view of the perceived uncertainties in obtaining the refund at this stage, the impairment made in the books as above has been retained and netted off against the amount recoverable as above in the Financial Statements for the year ending March 31, 2017. (Figures in ‘are restated).

13.1 Includes Nil under current assets (As at March 31, 2016 Rs.21,690.24 million; As at April 1, 2015 Rs.21,067.60 million) towards differential royalty being deposited from February 1, 2014 as per the interim order of the Hon’ble Supreme Court of India. (Note. 49.1.b)

14.1 This includes an amount of Rs.2.15 million (as at March 31, 2016 Rs.3.37 million; as at April 1, 2015 Rs.7.68 million) in respect of Carbon Credits.

14.2 Inventory amounting to Rs.81.58 million (as at March 31, 2016 Rs.105.26 million) has been valued at net realisable value. Write down amounting to Rs.24.40 million (as at March 31, 2016 Rs.149.45 million) has been recognised as expense in the Statement of Profit and Loss under note 35.

15.1 The deposits maintained by the Company with banks comprise time deposit, which can be withdrawn by the Company at any point without prior notice or penalty on the principal (Note 28.1).

15.2 Amount deposited in unclaimed dividend account is earmarked for payment of dividend and cannot be used for any other purpose. No amount is due for deposit in Investor Education and Protection Fund.

15.3 Matter of Dispute on Delivery Point of Panna-Mukta gas between Government of India and PMT JO Partners arose due to differing interpretation of relevant PSC clauses. According to the JO Partners, Delivery Point for Panna-Mukta gas is at Offshore, however, MoP&NG and GAIL maintained that the delivery point is onshore at Hazira. The gas produced from Panna-Mukta fields was transported through Company’s pipelines. Owing to the delivery point dispute neither the seller (PMT JO) nor the buyer of gas (GAIL) was paying any compensation to ONGC for usage of its pipeline for gas transportation.

Hon’ble Gujarat High Court decided that the Panna Mukta oil fields from where the movement of goods is occasioned fall within the customs frontiers of India Consequently, the sale of goods cannot be said to have taken place in the course of import of goods into the territory of India. The state Government of Gujarat has filed a petition with the Hon’ble Supreme Court of India against the decision of Hon’ble Gujarat High Court.

Since the said matter of determination of delivery point is pending with the Hon’ble Supreme Court of India, the amount is maintained in the escrow accounts by the JO Partners.

16.1 On transition date, the Company reclassified Two Helicopters (“the Helicopters”) as “Assets classified as held for sale’.

During the current year, the Helicopters have been sold for total consideration of Rs.147.81 million resulting in profit on sale of non-current asset ofRs.124.07 million recorded under ‘Other Income”. (Note 32).

16.2 Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.5 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to

16.3 Pursuant to the approval of the shareholders accorded by postal ballot on December 12, 2016 record date for ascertaining the eligibility of the shareholders for receiving the bonus shares was fixed on December 16, 2016. Accordingly, the Company has allotted 4,277,745,060 number of fully paid Bonus shares on December 18, 2016 in the ratio of one equity share of Rs.5 each fully paid up for every two existing equity shares of Rs.5 each fully paid up.

16.4 18,972 equity shares of Rs.10 each (equivalent to 37,944 equity shares of Rs.5 each) were forfeited in the year 2006-07 against which amount originally paid up was Rs.0.15 million.

17.1 Represent assessed value of assets received as gift.

17.2 The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed.

17.3 The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another.

17.4 The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013 and the dividend distribution policy of the Company. Thus, the amount reported in General Reserve is not entirely distributable.

18.1 As per the lease agreement, the Company is required to pay annual lease rental of Rs.35.03 million till perpetuity. The finance lease obligation represents the perpetuity value of annualized lease payment, which is Rs.417.96 million.

On August 23, 2016, a final dividend of Rs.3.25 per share for 2015-16 was paid to holders of fully paid equity shares.

On October 27, 2016 and on January 31, 2017 the Company had declared interim dividend ofRs.4.50 per share (90%) and Rs.2.25 per share (45%) respectively which has since been paid.

In respect of the year ended March 31, 2017, the Board of Directors has proposed a final dividend of’.0.80 per share be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs.10,266.61 million and the dividend distribution tax thereon amounts to Rs.2,090.04 million.

18.2 The Company estimates provision for decommissioning as per the principles of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ for the future decommissioning of Oil and Gas assets at the end of their economic lives. Most of these decommissioning activities would be in the future for which the exact requirements that may have to be met when the removal events occur are uncertain. Technologies and costs for decommissioning are constantly changing. The timing and amounts of future cash flows are subject to significant uncertainty. The economic life of the Oil and Gas assets is estimated on the basis of long term production profile of the relevant Oil and Gas asset. The timing and amount of future expenditures are reviewed annually, together with rate of inflation for escalation of current cost estimates and the interest rate used in discounting the cash flows.

19.1 This represents the fair value of fee towards financial guarantee issued on behalf of subsidiaries, recognised as financial guarantee obligation with corresponding debit to investment in subsidiaries.

19.2 No amount is due for deposit in Investor Education and Protection Fund.

19.3 Decommissioning provision in respect to PMT Joint Operation was provided based on the technical estimates of the Company till previous year. During the year, the said provision has been provided based on the technical estimates provided by the operator of the Joint Operation.

As a result decommissioning provision is higher by Rs.11,143. 47 million and depletion for the year is higher by Rs.4,080.36 million in respect of PMT Joint Operation.

20.1 Includes Rs.7,615.73 million in respect of Tapti A series assets, facilities and inventory which were a part of the assets of PMT Joint Operation and surrendered by the JO to the Government of India as per the terms and conditions of the JO Agreement. During the year these assets, facilities and inventory have been transferred by Government of India to the Company free of cost as its nominee. The Company has assessed the fair value of the said assets & facilities at Rs.7,156.89 million based on the valuation report by a third party agency, which has been accounted as Capital work in progress with a corresponding liability as Deferred Government Grant. Inventory valuing Rs.458.84 million has been accounted with a corresponding liability as Deferred Government Grant.

20.2 Includes Rs.8.57 million is on account of reimbursement of capital expenditure of research & development.

21.1 Secured against NIL (as at March 31, 2016 NIL; As at April 1, 2015 Rs.17,340 million) of principal amount of Term deposit receipt.

22.1 No discount was given by the Company to the Oil Marketing Companies during the year (Previous year Rs.10,961.20 Million).

22.2 Revenue from nominated crude (except North East crude) is accounted for in terms of Crude Oil Sales Agreements (COSAs) signed and made effective from April 1, 2010. For Crude Oil produced in Assam, sales revenue is based on the pricing formula provided by Ministry of Petroleum and Natural Gas, Government of India.

22.3 Sales revenue of Natural Gas is based on domestic gas price of US$ 3.06/mmbtu and US$ 2.50/mmbtu (on GCV basis) notified by GoI for the period April 1, 2016 to September 30, 2016 and October 1, 2016 to March 31, 2017 respectively in terms of “New Domestic Natural Gas Pricing Guidelines, 2014”. For gas consumers in North-East, consumer price is 60% of the domestic gas price and the difference between domestic gas price and consumer price is paid to the Company through GoI Budget and classified as ‘North-East Gas Subsidy’.

22.4 The Company is supplying majority of Natural gas to GAIL (India) Limited which also purchases gas from other sources and sells to different consumers at different prices. Based on the Government directives, excess in Gas Pool Account at the end of financial year is transferred to ONGC/Oil India Limited in accordance with their contribution. Based on the details received from GAIL (India) Limited, the said amount has been classified as ‘Surplus from Gas Pool Account’.

23.1 Pay revision of officers and unionized category is due w.e.f. 01.01.2017. Pending finalization of the same, the Company has provided for a sum of Rs.19,440.72 million as estimated by the management including long term benefit obligation viz. leave, gratuity (at max limit of Rs.2.00 million) etc. The same has been allocated to activities as per the policy of the Company.

23.2 The CSR expenditure comprises the following:

(a) Gross amount required to be spent by the Company during the year: Rs.5,356.66 million (Previous year Rs.5,936.96 million)

(b) Amount spent during the year on:

24.1 The Company has allotted 4,277,745,060 number of fully paid Bonus shares on December 18, 2016 in the ratio of one equity share of Rs.5 each fully paid up for every two existing equity shares of Rs.5 each fully paid up. In accordance with Ind AS 33 ‘Earnings per Share’, basic and diluted earnings per equity share have been adjusted for bonus issue for previous year.

25. Leases

25.1 Finance leases

Leasing arrangements

Leasehold land where lease term is till perpetuity has been classified under finance lease.

25.2 Operating lease arrangements

25.2.1 Leasing arrangements

The Company has applied Appendix C to Ind AS 17 ‘Leases’ to hiring/service contracts of rigs, vessels, helicopters, etc. to evaluate whether these contracts contains a lease or not. Based on evaluation of the terms and conditions of the arrangements, the Company has of the Company is to make such fixed contribution and to ensure a minimum rate of return to the members as specified by Government of India. As per report of the actuary, overall interest earnings and cumulative surplus is more than the statutory interest payment requirement. Hence, no further provision is considered necessary. The details of fair value of plan assets and obligations are as under:

26. Employee benefit plans

26.1 Defined Contribution plans:

26.1.1 Provident Fund

The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in permitted securities. The obligation evaluated such arrangements to be operating leases.

Operating leases relate to leases of rigs, vessels, helicopters etc. with lease terms upto 10 years. The Company does not have an option to purchase the leased rigs, vessels, helicopters etc. at the expiry of the lease periods.

Provident Fund is governed through a separate trust. The board of trustees of the Trust functions in accordance with any applicable guidelines or directions that may be issued in this behalf from time to time by the Central Government or the Central Provident Fund Commissioner, the board of trustees have the following responsibilities:

(i) Investments of the surplus as per the pattern notified by the Government in this regard so as to meet the requirements of the fund from time to time.

(ii) Raising of moneys as may be required for the purposes of the fund by sale, hypothecation or pledge of the investment wholly or partially.

(iii) Fixation of rate of interest to be credited to members’ accounts.

26.1.2 Post Retirement Benefit Scheme

The defined contribution pension scheme of the Company for its employees is administered through a separate trust. The obligation of the Company is to contribute to the trust to the extent of amount not exceeding 30% of basic pay and dearness allowance less employer’s contribution towards provident fund, gratuity, post-retirement medical Benefit (PRMB) or any other retirement benefits.

The board of trustees of the Trust functions in accordance with any applicable guidelines or directions that may be issued in this behalf from time to time by the Central Government, the board of trustees have the following responsibilities:

(i) Investments of the surplus as per the pattern notified by the Government in this regard so as to meet the requirements of the fund from time to time.

(ii) Fixation of rate of contribution and interest thereon.

(iii) Purchase of annuities for the members.

26.2 Employee Pension Scheme 1995

The Employee Pension Scheme -1995 is administered by Employees Provident Fund Organization of India, wherein the Company has to contribute 8.33% of salary (subject to maximum of Rs.15,000 per month) out of the employer’s contribution to Provident Fund.

26.3 Composite Social Security Scheme (CSSS)

The Composite Social Security Scheme is formulated by the Company for the welfare of its regular employees and it is administered through a separate Trust, named as Composite Social Security Scheme Trust. The obligation of the Company is to provide matching contribution to the Trust to the extent of contribution of the regular employees of the Company. The Trust provides an assured lump sum support amount in the event of death or permanent total disablement of an employee while in service. In case of Separation other than Death/Permanent total disability, employees own contribution along with interest is refunded.

The Board of trustees of the Trust functions in accordance with Trust deed, Rule, Scheme and applicable guidelines or directions that may be issued by Management from time to time.

The Board of trustees has the following responsibilities

(i) Investments of the surplus as per the pattern notified by the Government in this regard so as to meet the requirements of the fund from time to time.

(ii) Fixation of rate of interest to be credited to members’ accounts.

(iii) To provide cash benefits to the nominees in the event of death of an employee or Permanent Total Disablement leading to the cessation from service and refund of own contribution along with interest in case of separation other than death.

26.4 The amounts recognized in the financial statements before allocation for the defined contribution plans are as under:

26.5 Defined benefit plans

26.5.1 Brief Description: A general description of the type of Employee Benefits Plans is as follows:

26.5.2 All the employee benefit plans of the Company are run as Group administration plans (Single Employer Scheme) including employees seconded to ONGC Videsh Limited (OVL), 100% subsidiary.

26.5.3 Gratuity

15 days salary for each completed year of service. Vesting period is 5 years and the payment is restricted to Rs.1 million on superannuation, resignation, termination, disablement or on death.

Scheme is funded through own Gratuity Trust. The liability for gratuity as above is recognized on the basis of actuarial valuation.

For the purpose of actuarial valuation and provision there of the maximum limit of gratuity payable w.e.f January 1, 2017 has been considered at Rs.2 million in line with the 3rd Pay Revision Committee report submitted to Government of India.

26.5.4 Post-Retirement Medical Benefits

The Company has Post-Retirement Medical benefit (PRMB), under which the retired employees, dependent parents and their spouses are provided medical facilities in the Company hospitals/empanelled hospitals up on payment of one time prescribed contribution by the employees. They can also avail treatment as outpatient. The liability for the same is recognized annually on the basis of actuarial valuation. Full medical benefits on superannuation and on voluntary retirement are available subject to the completion of minimum 20 years of service and 50 years of age.

An employee should have put in a minimum of 15 years of service rendered in continuity in ONGC at the time of superannuation to be eligible for availing post-retirement medical facilities.

26.5.5 Terminal Benefits

At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligible for Settlement Allowance.

26.5.6 These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

26.6.4 Good Health Reward (Half pay leave)

Accrual - 20 days per year

Encashment while in service - Nil

Encashment on retirement - 50% of Half Pay Leave balance.

Scheme is funded through Life Insurance Corporation of India. (LIC).

The liability for the same is recognized annually on the basis of actuarial valuation.

26.7 The principal assumptions used for the purposes of the actuarial valuations were as follows.

No other post-retirement benefits are provided to these employees.

In respect of the above plans, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2017 by a member firm of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

26.6 Other long term employee benefits

26.6.1 Brief Description: A general description of the type of Other long term employee benefits is as follows:

26.6.2 All the employee benefit plans of the Company are run as Group administration plans (Single Employer Scheme) including employees seconded to ONGC Videsh Limited (OVL), 100% subsidiary.

26.6.3 Earned Leave (EL) Benefit

Accrual - 30 days per year

Encashment while in service - 75% of Earned Leave balance subject to a maximum of 90 days per calendar year

Encashment on retirement - maximum 300 days

Scheme is funded through Life Insurance Corporation of India (LIC).

The discount rate is based upon the market yield available on Government bonds at the Accounting date with a term that matches. The salary growth takes account inflation, seniority, promotion and other relevant factors on long term basis. Expected rate of return on plan assets is based on market expectation, at the beginning of the year, for return over the entire life of the related obligation.

Expected Contribution in respect of Gratuity for next year will be Rs.1904.73 million (For the year ended March 31, 2016 Rs.739.45 million)

The Company has recognized a gratuity liability of Rs.78.78 as on March 31, 2017 (As at March 31, 2016 Rs.82.30 million; As at April 1, 2015 Rs.78.72 million) as per actuarial valuation for 228 (415 As at March 31, 2016; 558 as at April 1, 2015) contingent Employees engaged in different work centres.

26.7.1 The fair values of the above equity and debt instruments are determined based on quoted market prices in active markets.

26.7.2 Cost of Investment is taken as fair value of Investment in Unit Linked Plan of Insurance Company (ULIPs) and Bank TDR.

26.7.3 All Investments in PSU Bonds, G Sec and T Bill are quoted in active market.

26.7.4 Fair value of Investment in Group Gratuity Cash Accumulation Scheme (Traditional Fund) of Insurance Company is taken as book value on reporting date.

26.7.5 Net Current Assets represent Accrued Interest on Investments minus outstanding gratuity reimbursements as on reporting date.

26.7.6 The actual return on plan assets of gratuity during FY 2016-17 was Rs.1,888.26 million(during FY 2015-16 Rs.1,689.33 million) and for Leave Rs.1,739.55 million (during FY 2015-16 Rs.1,691.87 million).

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Sensitivity due to mortality & withdrawals are not material & hence impact of change not calculated.

26.8 Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

27. Segment Reporting

27.1 The Company has identified and reported segments taking into account the different risks and returns, the organization structure and the internal reporting systems. Accordingly, the Company has identified following geographical segments as reportable segments

A. Offshore

B. Onshore

27.2 Segment revenue and results

27.2.1 The following is an analysis of the Company’s revenue and results from continuing operations by reportable segment.

27.2.2 Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sale in the current year (year ended March 31st, 2016: Nil)

27.2.3 The accounting policies of the reportable segments are the same as the Company’s accounting policies described in Note 3. Segment profit represents the profit before tax earned by each segment excluding finance cost and other income like interest/dividend income. This is the measure reported to the Chief Operating Decision maker for the purposes of resource allocation and assessment of segment performance.

For the purpose of monitoring segment performance and allocating resources between segments:

27.3.1 All assets are allocated to reportable segments other than investments in subsidiaries, associates and joint ventures, other investments, loans and current and deferred tax assets.

27.3.2 All liabilities are allocated to reportable segment other than borrowing, current and deferred tax liabilities.

27.3.3 Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments and amount allocated on reasonable basis. Unallocated expenditure includes common expenditure incurred for all the segments and expenses incurred at the corporate level. Finance cost includes unwinding of discount on decommissioning provisions not allocated to segment.

27.4 Information about major customers

Company’s significant revenues (more than 85%) are derived from sales to Public Sector Undertakings. The total sales to such companies amounted to Rs.682,865.03 million in 2016-17 and Rs.694,590.86 million in 2015-16.

No other single customer contributed 10% or more to the Company’s revenue for 2016-17 and 2015-16.

27.5 Information about geographical areas:

The Company is domiciled in India. The amount of its revenue from external customers broken down by location of customers is tabulated below:

The total of non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, broken down by location of assets are shown below:

27.6 Information about products and services:

The Company derives revenue from sale of crude oil, natural gas and value added products. The information about revenues from external customers about each product is disclosed in Note no. 31.5 of the financial statements.

28. Related Party Disclosures

28.1 Name of related parties and description of relationship:

Notes:

28.1.1 Subsidiary Company OVL has 47.52% effective ownership interest, but it has 55.90% of voting rights in LLC Sibinterneft.

28.1.2 LLC Imperial Frac Services is under liquidation.

28.2 Details of Transactions:

28.2.3 The loan is unsecured carrying interest rate of 8.12% based on G-sec yield for 5 years tenor as per FIMMDA of 7.72 % plus spread of 0.40 bps (previous year 10.6% based on SBAR minus 3.85%) and is recoverable in half-yearly installments by financial year 2020-21.

28.2.4 The loan is Interest free and unsecured. The loan has been granted to fund the OVL’s overseas projects and is recoverable out of the surplus cash flows arising from the projects. However, Company has the right to demand loan by serving a notice period of 15 months. Pending the final approval of Government for conversion of loan into equity, loan to the extent of Rs.50,000.00 million has been re-classified as deemed equity as on April 1, 2015 & March 3, 2016 respectively based on approval of board. During the year, the Company has received Government approval for such conversion and accordingly the same has been converted into equity. The remaining loan has been fair valued based on effective interest rate (EIR) method as per Ind AS-32 and the same has been presented in balance sheet. The fair value of remaining OVL loan Rs.163.45 million (previous year Rs.6687.64 million) base on effective interest rate 8.12% (previous year 10.60% ) is included in note 12.

28.2.9 The loan in previous year was secured by hypothecation of 7 new Helicopters and carries interest rate of 10.80% based on SBI base rate plus 1.5% and is recoverable in sixty equal monthly installments starting from loan granted which has been recovered in full by 2016-17.

The above transactions with the government related entities cover transactions that are significant individually and collectively. The Company has also entered into other transactions such as telephone expenses, air travel, fuel purchase and deposits etc. with above mentioned and other various government related entities. These transactions are insignificant individually and collectively and hence not disclosed.

29. Financial instruments Disclosure

29.1 Capital Management

The Company’s objective when managing capital is to:

- Safeguard its ability to continue as going concern so that the Company is able to provide maximum return to stakeholders and benefits for other stakeholders; and

- Maintain an optimal capital structure to reduce the cost of capital.

The Company maintains its financial framework to support the pursuit of value growth for shareholders, while ensuring a secure financial base. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The capital structure of the Company consists of total equity (Refer Note 21 & 22). The Company is not subject to any externally imposed capital requirements.

The Company’s financial management committee reviews the capital structure on a regular basis. As part of this review, the committee considers the cost of capital, risks associated with each class of capital requirements and maintenance of adequate liquidity.

29.1.1 Gearing Ratio

The Company has no outstanding debt as at the end of reporting period. Accordingly, the Company has zero gearing ratio as at March 31, 2017 and March 31, 2016. Gearing ratio was 0.0096 as at April 1, 2015.

29.3 Financial risk management objectives

While ensuring liquidity is sufficient to meet Company’s operational requirements, the Company’s financial management committee also monitors and manages key financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

29.4 Market Risk

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business. The major components of market risk are commodity price risk, foreign currency risk and interest rate risk.

The primary commodity price risks that the Company is exposed to include international crude oil prices that could adversely affect the value of the Company’s financial assets or expected future cash flows. Substantial or extended decline in international prices of crude oil and natural gas may have an adverse effect on the Company’s reported results.

29.5 Foreign currency risk management

Sale price of crude oil is denominated in United States dollar (USD) though billed and received in Indian Rupees (INR). The Company is, therefore, exposed to foreign currency risk principally out ofINR appreciating against USD. Foreign currency risks on account of receipts/revenue and payments/expenses are managed by netting off naturally-occurring opposite exposures through export earnings, wherever possible and carry unhedged exposures for the residual considering the natural hedge available to it from domestic sales.

The Company undertakes transactions denominated in different foreign currencies and consequently exposed to exchange rate fluctuations. Exchange rate exposures are managed within approved policy parameters. The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Sensitivity of profit or loss before tax to change in /- 1 USD in prices of crude oil, natural gas & value added products (VAP) and /- Re. 1 in exchange rate between INR-USD currency pair is presented as under:

29.5.1 Foreign currency sensitivity analysis

The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.

As per management’s assessment of reasonable possible changes in the exchange rate of /- 5% between USD-INR currency pair, sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the period end is presented below:

29.5.2 Forward foreign exchange contracts

The Company has not entered into any forward foreign exchange contracts during the reporting period.

29.6 Interest rate risk

The Company has not availed borrowings, hence is not exposed to interest rate risk.

29.7 Price risks

The Company’s equity securities price risk arises from investments held and classified in the balance sheet either at fair value through OCI or at fair value through profit or loss. The Company’s equity investments in IOC and GAIL are publicly traded.

Investment of short-term surplus funds of the Company in liquid schemes of mutual funds provides high level of liquidity from a portfolio of money market securities and high quality debt and categorized as ‘low risk’ product from liquidity and interest rate risk perspectives.

29.7.1 Price sensitivity analysis

The sensitivity of profit or loss in respect of investments in equity shares and mutual funds at the end of the reporting period for /-5% change in price and net asset value is presented below:

- Profit before tax for the year ended March 31, 2017 would increase/decrease by Rs.1,817.16 million (For the year ended March 31, 2016 would increase/decrease by Rs.1,501.62 million) as a result of 5% changes in net asset value of investment in mutual funds; and

- Other comprehensive income for the year ended March 31, 2017 would increase/decrease by Rs.14,478.68 million (for the year en


Mar 31, 2016

1. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs, 5 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* Represents the amount equivalent to depreciation transferred to the Statement of Profit and Loss.

2. Represents assessed value of assets received as gif t.

3. The Board of Directors has recommended a final dividend of Rs, 3.25 per share (previous year Rs, 0.50 per share) which is subject to the approval of the shareholders in the ensuing Annual General Meeting over and above the interim dividend of Rs, 5.25 per share (Previous year Rs, 9.00 per share).

12.1 In terms of guidance note on accounting for Oil & Gas Producing Activities (Revised 2013) and EAC opinion Issued by the Institute of Chartered Accountants of India (ICAI), the Company has transferred Producing Properties as "Oil and Gas Assets" under Tangible Assets. Net book value of Assets pertaining to production & allied facilities has been transferred from other tangible assets to reflect the aggregate amount of “Oil and Gas Assets". Accordingly, the company has w.e.f. 01.04.2015, made changes in accounting estimates by changing the useful life of certain production & allied facilities shown as Oil and Gas Assets by linking it with the respective Oil & Gas reserves for the purpose of charging depletion on such Oil & Gas Assets. Such change in accounting estimates has been accounted for prospectively as per Accounting

Standard (AS)-5. Consequent to such change, the "Depreciation and amortization expenses" for the year ended 31st March 2016 is lower by Rs, 848.89 million and the profit before tax for the year ended 31 st March 2016 is higher by Rs, 848.89 million.

4. During the year, the company has reviewed and changed the accounting treatment of charging off the water injector side track wells which are service wells drilled for the purpose of supporting production from the existing offshore fields, in line with Guidance note on accounting for Oil 8 Gas Producing Activities (Revised 2013) issued by ICAI. Accordingly, an amount of Rs, 4,212.57 million in respect of such wells has been capitalized under Oil & Gas Assets and consequently profit before tax for the year ended 31st March'' 2016 is higher by Rs, 3,656.47 million.

Vehicles includes Survey Ships. Crew Boats and Helicopters. (Refer note no.32.2)

Notes

5. Land includes 173 (no''s) of lands in respect of certain projects amounting to Rs,1,863.63 million (Net Block) for which execution of lease ‘conveyance deeds is in process.

6. Registration of title deeds in respect of 12 (no''s) Buildings is pending execution amounting to Rs, 64.94 million (Net Block)

7. Depreciation for the year includes Rs, 410.45 million pertaining to prior period (Previous Year Rs, -0.04 million).

8. Building includes cost of undivided interest in land.

9. Ministry of Corporate Affairs (MCA) vide notification dated August 29.2014 had amended Schedule 11 to the Companies Act. 2013 recuing mandatory component to Don of fixed assets for financial statements in respect of financial years commencing on or after 1st April 2015. During me year the company has under taken me coinponentization ol fixed assets w.e.f. 01.04.2015 on me basis of technical evaluation and useful life thereof. Consequently, the'' Depreciation, Depletion and amortization expenses'' is higher by 7 97.20 million for the year ended 31 st March 2016 and the profit before tax x for the year ended 31 st March 2016 is tower by Rs, 97 20 million.

10. Deletion Adjustment Veterans for dung me year includes assets transferred to Oil & Gas Assets. (Refer note 12.1)

11. The company had acquired in FY 2004-05. 90% Participating Interest in Exploration Block KG-DWN-98/2 tom M/s Cairn Energy India Limited to a lump sum consideration of Rs, 3.711.22 million which, together with subsequent exploratory drilling costs of wells had been capitalized under exploratory wells in progress. In FY 2012-13, the company had acquired the remaining 10% participating interest in the block from M/s Cairn Energy India Limited. On actual past cost basis for a consideration of Rs, 2124.44 million. Initial in-place reserves were established in this block and adhering to the original PSC time lines, a Declaration of commerciality (DOC) with a conceptual cluster development plan was submitted on 21.12.2009 for Southern Discovery Area and on 15.07.2010 for Northern Discovery Area. Thereafter, in the revised DOC submitted in December. 2013, Cluster-wise development of the Block had been envisaged by division of entire development area into three clusters. The DOC in respect of Cluster II had been reviewed by the Management Committee (MC) of the block on 25.09.2014. Field Development Plan (FDP) for Cluster-ll was submitted on 08.09.2015 and the same had been approved by MC on 31.3.2016. The exploration period of this block had been restructured by Government up to 29.12.2013 in accordance with the Rig Holiday Policy and further extended to 25.01.2014. Under the new policy framework for relaxation, extensions and clarifications at the development and production stage under the PSC regime notified by MoP&NG vide GO dated 10.11.2014; drilling and testing of appraisal wells were completed. Revised DOC for Clusters I and III has been submitted to MC for review on 27.04.2016.

In view of the definite plans for development of discoveries in the block, the company has reversed a provision of 7 15,482.32 million created in the past.

12. Loans and advances to employees include an amount of 7 0.13 million (Previous Year Rs, 0.24 million) outstanding from Key Managerial Personnel.

13. In Ravva Joint Venture, the demand towards additional profit petroleum raised by Government of India (Gol), due to differences in interpretation of the provisions of the Production Sharing Contract (PSC) in respect of computation of Post Tax Rate of Return (PTRR), based on the decision of the Malaysian High Court setting aside an earlier arbitral tribunal award in favor of operator, was disputed by the operator M/s Cairn India Limited. The company is not a party to the dispute but has agreed to abide by the decision applicable to the operator. The company had made a provision towards the claim made by the Gol in earlier years and the amount of provision outstanding as on 31 st March, 2016 is Rs, 11,136.49 million (equivalent to USD 167.84 million) after adjustments for interest and exchange rate fluctuations. The Gol had recovered the above amount (including interest thereon USD 54.88 million (Rs, 3,641.29 million )] from the company in earlier years which has been carried under Long Term Loans and advances in the Balance Sheet as at 31st March 2016.

In subsequent legal proceedings, the Appellate Authority of the Honorable Malaysian High Court of Kuala Lumpur had set aside the decision of the Malaysian High Court and the earlier decision of arbitral tribunal in favour of operator was restored, against which the Gol has preferred an appeal before the Federal Court of Malaysia. The Federal Court of Malaysia, vide its order dated 11th October. 2011, has dismissed the said appeal of the Gol.

The company has taken up the matter regarding refund of the recoveries made in view of the favorable judgment of the Federal Court of Malaysia with MoP&NG. However, according to a communication dated 13th January 2012 received, MoP&NG expressed the view that ONGC''s proposal would be examined when the issue of ONGC carry under Ravva PSC is decided in its entirety by the Government along with other partners.

In view of the perceived uncertainties in obtaining the refund at this stage, the provision made in the books as above has been retained and netted off against the amount recoverable as above in the financial statements for the year ending 31 st March 2016. (Figures inlNRare restated).

14. During the financial year 2010-11, the Oil Marketing Companies, nominees of the Gol recovered USD 32.07 million (Rs, 2,128.01 million) ONGC''s share as per directives of Gol in respect of Jointly Controlled Assets-Panna Mukta and Tapti. The recovery is towards certain observations raised by auditors appointed by the Director General of Hydrocarbons (DGH) under Production Sharing Contract (PSC) for the period 2002-03 to 2005 06 in respect of cost and profit petroleum share payable to Gol. BGEPIL along with RIL (“Claimants’) have served a notice of arbitration on the Gol in respect of dispute, differences and claims arisen in connection with the terms of Panna, Mukta and Tapti PSCs. Since the company is not a party to the arbitration proceedings, it had requested MoP&NG that in case of an arbitral award the same be made applicable to ONGC also, as a constituent of contractor for both the PSCs. Subsequently, vide letter dated July 4,2011 MoP&NG has advised ONGC not to participate in the arbitration initiated by RIL and BGEPIL under Panna Mukta and Tapti PSCs. MoP&NG has also stated that in case of an arbitral award, the same will be applicable to ONGC also as a constituent of the contractor for both the PSCs. Pending final arbitral award, the same has been shown as Receivable from Gol under Advance Recoverable in Cash or Kind or Value to be Received’ under Long Term Loans and Advances. (Figures in INR are restated).

15. Deposit under Site Restoration Fund Scheme:

A sum of Rs, 135,591.83 million till 31.03.2016 (previous year 7 125,443.80 million) has been deposited with banks under section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipments and installations in a manner agreed with Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment etc. This amount is considered as restricted cash and hence not considered as ''Cash and Bank Balances''.

-valued as per accounting policy no. 2.i

16. This includes an amount of Rs, 3.37 million (previous year Rs, 7.68 million) in respect of Carbon Credits.

15. The deposits maintained by the company with banks comprise time deposit, which can be withdrawn by the company at any point without prior notice or penalty y on the principal.

16. Amount deposited in unclaimed dividend account is earmarked for payment of dividend and cannot be used for any other purpose.

17. Includes 7 21,690.24 million (Previous year Rs, 21067.60 million) towards differential royalty being deposited from 1 st February 2014 as per the interim order of the Hon''ble Supreme Court of India, (also refer Note no. 45.1.1 ,b)

18 Includes an amount of Rs, 0.73 million (Previous Year Rs, 0.13 million) outstanding from Key Managerial Personnel.

-Includes receivable of 7 1.351.73 million (Previous Year Rs, 532.02 million) from Gratuity Trust as funded status is more than obligation.

19. In terms of the decision of Government of India (GOI). the company has shared Rs, 10,961.20 million (Previous Year 7 362.996.20 million) towards under-recoveries of Oil Marketing Companies (OMCs) for the year 2015-16 (as per Gol directives) by extending the discount in the price of Crude Oil based on the rates of discount communicated by Petroleum Planning and Analysis Cell (PPAC) and Ministry of Petroleum and Natural Gas (MoP&NG).

20. For Crude Oil produced in Assam, sales revenue is based on the pricing formula provided by MoP&NG. Revenue from rest of nominated crude is accounted in terms of Crude Oil Sales Agreements (COSAs) already signed and made effective from 1st April. 2010.

21. Sales revenue of Natural Gas is based on domestic gas price of USS 4.66/mmbtu and USS 3.82/mmbtu (on GCV basis) notified by Gol for the period 1 st April 2015 to 30th September 2015 and 1 st October 2015 to 31st March 2016 respectively in terms of "New Domestic Natural Gas Pricing Guidelines, 2014". For gas consumers in North-East, consumer price is 60% of the domestic gas price and the difference between domestic gas price and consumer price is paid to the company through Gol Budget and shown as ''North-East Gas Subsidy’,

22. The company is supplying majority of Natural gas to Gas Authority of India Limited (GAIL) which also purchases gas from other sources and sells to different consumers at different prices. Based on the Government directives, excess in Gas Pool Account at the end of financial year is transferred to ONGC/ OIL in accordance with their continuation. Based on the details received from GAIL, an amount of 7 509.14 million (Previous year 7 3,267.04 million) has been considered as Surplus from Gas Pool Account'' for the year 2015-16.

23. Excise duty on sale to product has been deducted from Sales revenue and Excise duty shown above represents the difference between Excise duty on opening and closing stock of finished goods.

24. Other expenditure includes Rs, 2,950.47 million, pertaining to cost of 23 immediate support vessels (ISVs) handed over to Indian Navy for security of offshore installations, charged of f consequent to review carried out during the year.

-Represents expenditure in respect of Wind Power Project at Jaywalker-Rajasthan. During the year, the Company has decided to treat the said project as a ''business project'', above expenditure along with further amount spent during the year aggregating to Rs, 5640.86 million has been capitalized as Fixed Assets of the company. Further, revenue generated from sale ol electricity amounting to Rs, 800.98 million has been accounted lore as Other Operating Income. Hence, the above amount disclosed on CSR in the previous year remains unspent to this ex tent.

25. Disclosure under the Accounting Standard -15 on "Employee Benefits’’

26. Brief Description: A general description of the type of Employee Benefits Plans is as follows:

27. All the employee benefit plans of the Company are run as Group administration plans (Single Employer Scheme) including employees seconded to ONGC Videsh Limited (OVL), 100% subsidiary.

28. Earned Leave (EL) Benefit

Accrual - 30 days per year

Encashment while in service - 75% of Earned Leave balance subject to a maximum of 90 days per calendar year

Encashment on retirement - maximum 300 days

Scheme is funded through Life Insurance Corporation of India. (LIC).

29. Good Health Reward (Half pay leave)

Accrual - 20 days per year Encashment while in service - Nil

Encashment on retirement - 50% of Half Pay Leave balance.

Scheme is funded through Life Insurance Corporation of India. (LIC).

30. Gratuity

15 days salary for each completed year of service. Vesting period is 5 years and the payment is restricted to

71.00 million.

Scheme is funded through own Gratuity Trust

31. Post-Retirement Medical Benefits

Upon payment of one time prescribed contribution by the employees, full medical benefits on superannuation and on voluntary retirement subject to the completion of minimum 20 years of service and 50 years of age.

An employee should have put in a minimum of 15 years of service rendered in continuity in ONGC at the time of superannuation to be eligible for availing post-retirement medical facilities

32. Terminal Benefits

At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligible for Transfer Travelling Allowance.

33. In terms of DPE Guidelines, The Company has formulated a Post-Retirement Benefit Scheme (PRBS) as a defined contribution scheme w.e.f. 01.01.2007

34 The amounts included in the fair value of plan assets of gratuity fund in respect of Reporting Enterprise’s own financial instruments and any property occupied by, or other assets used by the reporting enterprise are Nil (Previous Year Nil)

35 Reconciliation showing the movements during the period in the net liability recognized in the balance Sheet:

‘Includes Joint Venture allocation in respect of Post-retirement Medical benefits of Rs, 3.54 million (Previous year 7 6.35 million)

Expected Contribution in respect of Gratuity for next t year will be Rs, 286.82 million (Previous Year Rs, 185.53 million)

The company has recognized a gratuity liability of Rs, 82.30 million as on 31.03.2016 (Previous year Rs, 78.72 million) as per actuarial valuation for 415 (Previous year 558) Contingent Employees engaged in different work centre’s.

The discount rate is based upon the market yield available on Government bonds at the Accounting date with a term that matches. The salary growth rate takes account of inflation, seniority, promotion and other relevant factor on long term basis. Expected rate of return on plan assets is based on market expectation, at the beginning of the year, for return over the entire life of the related obligation.

36 Disclosure under Accounting Standard -17 on "Segment Reporting"

The segment information is presented under the Notes to the Consolidated Financial Statements as required under the standard.

37 Disclosure under Accounting Standard -18 on "Related Party Disclosures”:

38. Name of related parties and description of relationship:

Jointly Controlled Entity

i. Petro net LNG Limited

ii. ONGC Teri Biotech Limited

iii. Mangalore SEZ Limited

iv. ONGC Tripura Power Co. Limited

v. (ONGC Mangalore Petrochemicals limited up to 28.02.2015)

39. Key Managerial Personnel:

i) Shri D K Sarraf. Chairman and Managing Director

ii) Shri Shashi Shanker, Director( T&FS)

iii) Shri T K Sengupta, Director (Offshore)

iv) Shri D D Misra, Director} HR)

v) Shri A K Dwivedi. Director (Exploration)

vi) Shri Ashok Verma, Director(Onshore) up to 31.07.2015

vii) Shri V. P Mahawar, Director (Onshore) w.e.f 01.08.2015

viii) Shri A. K Banerjee, Director(Finance) up to 30.04.2015

ix) Shri A K Srinivasan, Director (Finance) w.e.f 23.09.2015

x) Shri N K Sinha. Company Secretary up to 30.06.2015

xi) Shri V N Murthy, Company Secretary w.e.f 01.07.2015

xii) Shri NK Verma, Director (Exploration) up to 26.08.2014

xiii) Shri K.S Jamestin, Director (HR) up to 31.07.2014

41 Disclosure under Accounting Standard -19 on ’Leases''

The company has certain office/residential premises on Operating Lease which are cancellable by giving appropriate notice as per the respective agreements. During the year Rs, 818.58 million (Previous year 7 977.22 million) had been paid towards cancellable Operating Lease.

40. Disclosure under Accounting Standard - 27 on Financial Reporting of Interests in Joint Ventures:

41 Jointly Controlled Assets

Abbreviations:- APGIC- AP Gas Infrastructure Corporation Limited, AWEL- Adani Welspun Exploration Limited, BGEPIL- British Gas Exploration & Production India Limited, BPRL- Bharat Petro Resources Limited, Cairn India-Cairn India Limited, CEHL- Cairn Energy Hydrocarbons Limited, CIL- Coal India Limited, EEPL- Essar Exploration

& production Limited. ENI- Ente Nazionale Idrocarburi, EOL-EssarOil Limited, GAIL- Gas Authority of India Limited, GSPC- Gujarat State Petroleum Corporation Limited, HEPI- Hardy Exploration & Production India Limited, HOEC-Hindustan Oil Exploration Company Limited, IOC- Indian Oil Corporation Limited, NTPC- National Thermal Power Corporation Limited, OIL- Oil India Limited, PEPL-Prabha Energy Pvt Limited, RIL- Reliance Industries Limited, ROPL- Ravva Oil (Singapore) Private Limited, TPL- Tata Petrodyne Limited. VIL- Videocon Industries Limited

42. The financial statements of 124 (previous year 117) out of 135 (previous year 134) JVs/NELP have been incorporated in the accounts to the extent of Company''s participating interest in assets, liabilities, income, expenditure and profit / (loss) before tax on the basis of statements certified in accordance with production sharing contract and in respect of balance 11 (previous year 17) JVs/NELP, the figures have been incorporated on the basis of uncertified statements prepared under the production sharing contracts. Both the figures have been adjusted for changes as per Note No. 2.j.1 The financial positions of JV/NELP are as under:

43. In respect of 10 NELP blocks (previous year 3) which have expired as on 31st March, 2016, the Company''s share of Unfinished Minimum Work Programme (MWP) amounting to 7 2,966.53 million (previous year to Rs, 820.40 million) has not been provided for since the company has already applied for further extension of period in these blocks as ''excusable delay’/ special dispensations citing technical complexities, within the extension policy of NELP Blocks, which are under active consideration of Gol. The delays have occurred generally on account of pending statutory clearances from various Govt, authorities like Ministry of Defense, Ministry of Commerce, environmental clearances, State Govt, permissions etc. The above MWP amount of 7 2,966.53 (previous year Rs, 820.40 million) is included in MWP commitment under note no. 45.1.6.

44. As per the Production Sharing Contracts signed by the Company with the Gol, the Company is required to complete Minimum Work Programme (MWP) within stipulated time. In case of delay in completion of the MWP, Liquidated Damages (LD) is payable for extension of time to complete MWP Further, in case the Company does not complete MWP or surrender the block without completing the MWP. the estimated cost of completing balance work programme is required to be paid to the Gol. LD amounting to 7 nil (Previous year 7 24.08 million) and cost of unfinished MWP (net of reversal) 7

45 million (Previous year 7 1,420.64 million), paid/payable to the Gol is included in survey and wells written of f expenditure.

46. The company had acquired Participating Interest (PI) of British Gas Exploration & Production India Limited (BGEPIL) in the following blocks, effective from the following dates as approved by the board of directors.

47. Disclosure under Accounting Standard - 28 ‘‘Impairment of Assets" and Guidance note on Accounting for Oil and Gas producing Activities (Revised 2013) issued by ICAI on impairment of Assets”

48. The company has relinquished 30% Participating Interest (PI) in SGL Field with future interest in block RJ-ON/6 Jaisalmer Basin Rajasthan to Focus Energy Limited (Operator), on condition that Focus Energy Limited (Operator) to pay towards 100% past royalty obligation. PEL/ML fees, other statutory levies and waive off development/ Production costs payable by ONGC in SGL Field of the block as well as take all future 100% royalty obligation of ONGC as licensee and also not exercise its option of acquiring 30% PI in two gas discoveries namely SSG-1 and SSF-2 in Block. Pending farm out agreement/ government approval, no adjustment is made in the accounts in respect of relinquishment of RJ-ON/6.

49. Jointly Controlled Entities:

50. Company has ownership interest in following Jointly Controlled Entities:

51. The Company is engaged mainly in the business of oil and gas exploration and production in Onshore and Offshore. In case of onshore assets, the fields are using common production/transportation facilities and are sufficiently economically interdependent to constitute a single cash generating unit (CGU). Accordingly, impairment test of all onshore fields is performed in aggregate of all those fields at the Asset Level. In case of Offshore Assets, a field is generally considered as CGU except for fields which are developed as a Cluster, for which common facilities are used, in which case the impairment testing is performed in aggregate for all the fields included in the cluster.

52 The Value in Use of producing/developing CGUs is determined under a multi-stage approach, wherein future cash flows are initially estimated based on Proved Developed Reserves. Under circumstances where the further development of the fields in the CGUs is under progress and where the carrying value of the CGUs is not likely to be recovered through exploitation of proved developed reserves alone, the Proved and probable reserves (2P) of the CGUs are also taken for the purpose of estimating future cash flows. In such cases, full estimate of the expected cost of evaluation/development is also considered while determining the value in use.

53 In assessing value in use, the estimated future cash flows from the continuing use of the assets and from its disposal at the end of its useful life are discounted to their present value. The present values of cash flows are determined by applying discount rates of 19.06% (previous year 19.71 %) for Rupee transactions and 13.37% (previous year 13.89 %) for crude oil and value added products revenue, which are measured in USD. Future cash inflows from sale of crude oil and value added products are computed using the future prices, on the basis of market-based average prices of the Dated Brent crude oil as per assessment by ''Platt’s Crude Oil Market wire and its co-relations with benchmark crudes and other petroleum products. Future cash flows from sale of natural gas is also computed based on the expected future prices on the basis of the notification issued by the Government of India and discounted applying the rate applicable to the cash flows measured in USD in view of the new pricing guidelines issued by Gol. (refer note no.27.3)

54 The company had assessed the impairment as at 31 st March'' 2016 for its cash generating units. As a result, an amount of 7 33,107.27 million (Previous Year 7 2,136.53 million) has been provided. Out of this, an amount of 7 29,865.91 million pertains to Onshore CGU Sibsagar and Rs, 2,257.50 million in respect of Pre NELP JV Block RJ-ON-90/1. Further. 7 821.81 million has been provided in respect of Offshore CGUs. Balance impairment loss of Rs, 162.05 million relates to other CGUs namely Silchar, Jodhpur etc.

During the year, Rs, 1,685.14 million (Previous Year Rs, 201.88 million) impairment losses has been reversed. Out of this, an amount of 7 1,645.10 million relates to already partially impaired Rajahmundry Offshore CGU. Balance Rs, 40.04 million reversal pertains to Offshore CGU B-121, CY-OS-90/1 (PY-3). Tapti etc.

Considering the fall in crude oil prices in the international market and resultant net impairment being significant during the year, the same has been considered as Exceptional item and disclosed appropriately in the "statement of Profit and Loss''.

55 Impairment testing of assets under exploratory phase (Exploratory Wells in Progress) has been carried out as on 31.03.2016, and an amount of 7 626.36 million (Previous year 7 1,172.15 million) has been provided during the year 2015-16 as impairment loss. Further, Rs, 3,466.20 million (Previous Year Rs, 1,203.23 million) impairment losses has been reversed in the Statement of Profit and Loss as exploratory phase assets have been transferred to Oil & Gas Assets.

56 Disclosure under Accounting Standard - 29 on “Provisions, Contingent Liabilities and Contingent Assets”: Movement in Provisions for Abandonment and others:

57 Other Disclosures under Schedule III to the Companies Act, 2013:

58 Contingent liabilities and commitments (to the extent not provided for)

59 Contingent Liabilities:

Claims against the Company/ disputed demands not acknowledged as debt:-

a. The Company''s pending litigations comprise of claims against the Company and proceedings pending with Tax / Statutory/ Government Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. Future cash outflows in respect of the above are determinable only on receipt of judgments/ decisions pending with various forums/authorities.

b. In terms of the statutory provisions of Oilfields (Regulation and Development) Act, 1948 (ORDA), Petroleum & Natural Gas (PNG) Rules 1959 and Notifications issued thereunder; the Company is liable to pay royalty to the Central Government (Gol) and State Governments, on production of Crude Oil and Natural Gas from offshore and onshore fields, respectively. Since 2008-09, the Company has been paying royalty on crude oil at realized price which is net of under-recovery of the OMCs shared by the Company as per Gol directives. On an application filed by the State of Gujarat, the Hon''ble High Court of Gujarat in its order dated 30.11.2013 has directed the Company to pay the shortfall of royalty on crude oil produced from the onshore fields in the State of Gujarat on pre-discount prices from 01.04.2008 onwards. Based on the Special Leave Petition filed by the Company against the said order of the Hon''ble High Court of Gujarat, pending further orders, Hon''ble Supreme Court vide order dated 13.02.2014 stayed the operation of the impugned judgment subject to the condition that the company pays royalty to the State of Gujarat on pre-discounted price of crude oil w.e.f. 01.02.2014 onwards. Accordingly, differential amount of 7 117,864.64 million on this account for the period from April, 2008 to March, 2016 (7 117,242.00 million as on 31.03.2015) has been considered as Contingent Liability. Pending the final outcome of the SLP filed before the Hon’ble Supreme Court, differential royalty (royalty on pre-discount price minus royalty on post-discount price) amounting to 7 21,690.24 million deposited w.e.f. February. 2014 (7 21,067.60 million as on 31.03.2015) in terms of Hon’ble Supreme Court order has been shown as deposit.

c. Government of Assam has filed a writ petition in the Hon''ble High Court of Guwahati for payment of differential royalty of 7 23,367.30 million on post and pre discount sale price of crude oil for the period 2008-09 to 2013-14 which is pending adjudication. The amount of demand as above together with amount of differential royalty up to 31.03.2016 including interest thereon estimated to be 7 30,857.82 million has accordingly been included and shown as contingent liability.

60 Corporate Guarantees executed by the Company on behalf of its wholly owned subsidiary, ONGC Videsh Limited (OVL):

61 Guarantees executed for financial obligations:

i) Amount of Guarantee 7 323,516.26 million (Previous yearRs, 304.152.81 million)

ii) Amount outstanding 7 320,902.11 million (Previous year 7 301,671.35 million)

62 Corporate Guarantees executed by the Company on behalf of its subsidiary, MRPL:

i) Amount of Guarantee 7 31,516.25 million (Previous year 7 29.754.00 million)

ii) Amount outstanding 7 10,269.62 million (Previous year 7 3,290.04 million)

63 Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account:-

i) In respect of Company: 7 122,679.23 million (Previous year 7134,081.19 million).

ii) In respect of Joint Ventures: 7 20.52 million (Previous year 7 3,842.99 million).

64 Other Commitments

a) Estimated amount of Minimum Work Programme (MWP) committed under various ‘Production Sharing Contracts’ with Government of India/ Nominated Blocks:

) In respect of NELP blocks in which the Company has 100% participating interest:

7 2,394.45 million (Previous year

7 3,000.14million).

ii) In respect of NELP blocks in Joint Ventures, company''s share: 7 24,680.51 million (Previous year 7 32.705.26 million).

b) In respect of ONGC Petro Additions Limited, A Joint Venture Company 7 480.50 million on account of subscription of Share Warrants with a condition to convert it to shares after a balance payment of 7 0.25/* per share.

65 The Company has given an undertaking to The State Bank of India, for a Rupee term loan agreement amounting to 7 30,350 million (previous year 7 30.350 million) in respect of ONGC Tripura Power Co. Limited (OTPC) for not to dilute the shareholding till two years after Commercial Operation Date (COD) of the project and to bear any cost overrun to the ex tent of 10% of the estimated project cost of 740,470 million.

-MMTOE denotes "Million metric Tonne Oil Equivalent" and for calculating Oil equivalent of Gas. 1000 M3 of Gas has been taken to be equal to 1 MT of Crude Oil.

Variations in totals, if any. are due to internal summations and rounding off.

66. The year-end reserves of the company have been estimated by the Reserves Estimation Committee (REC) which follows international reservoir engineering procedures consistently.

The company has adopted deterministic approach for reserves estimation and is following Society of Petroleum Engineers (SPE) 1997 guidelines which defines reserves as “estimated volumes of crude

Notes:

1. Loan to OVL is repayable within a notice period of fifteen months and carries no interest during the years 2015-16 and 2014-15.

2. Loan to MRPL carries interest @State Bank Advance Rate (SBAR) with a spread of minus 385 basis points. The Loan is repayable quarterly in 28 equal installments. The repayment of loan had started from the last quarter of FY 2013-14. ONGC can call these loans on notice of 90 days. MRPL can prepay whole or part of the loan to ONGC as per its requirement.

3. The Company has not advanced any money to its employees for the purposes of investment in the securities of the Company.

67 The Company has a system of physical verification of Inventory, Fixed Assets and Capital Stores in a phased manner to cover all items over a period of three years. Adjustment of dif fervencies, if any, is carried out on completion of reconciliation.

68 The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses,

69 Some balances of Trade/Other Receivables, Trade/Other Payables and Loans and Advances are subject to confirmation/ reconciliation. Adjustments, if any, will be accounted for on confirmation/ reconciliation of the same, which will not have a material impact.

70 Previous year’s figures have been regrouped/ reclassified, wherever necessary, to conform to current year’s classification.

71 Figures in parenthesis as given in these Notes to Financial Statement relate to previous year.

In view of the Notification no. S.O 447(E) dated 28.02.2011, issued by Ministry of Corporate Allans, the Balance sheet of the Company is mandatonly required to be prepared in Revised Schedule VI w e.f 1 April. 2011 onwards (Schedule III after implementation of Companies Act, 2013 w e.f. 1st April, 2014). Accordingly, the ligules of FY 2015-16 and FY 2014-15 are given as per requirement of Schedule-Ill. Figures for FY 2010-11 to FY 2013-14 are given as per the requirement of Revised Schedule VI and for earlier years figures are as per Old Schedule VI

* Exploration Costs written oil towards Survey & Dry Wells have been regrouped from Depreciation, Depletion and Amortization same these represents cash expenditure and shown as a separate item


Mar 31, 2015

1. Corporate information

Oil and Natural Gas Corporation Limited ('ONGC' or 'the Company') is a public limited company domiciled and incorporated in India. The Company's shares are listed and traded on Stock Exchanges in India. The Company is engaged in exploration, development and production of crude oil and natural gas.

2. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Pursuant to the approval of the members dated 28.01.2011, during the financial year 2010-11, one equity share having face value of Rs. 10/- each had been sub-divided into two equity shares of Rs. 5/- each and bonus shares in proportion of one new equity bonus share of Rs. 5/- each for every one fully paid up equity share of '5/- each held on

09.02.2011 (record date) had been allotted. The company has issued total 4,277.75 million equity shares of face value of '5 each issued as fully paid up by way of bonus shares during the period of five years immediately preceding the reporting date.

4. Shares reserved for issue under option: Nil (previous year nil)

5. During the previous year 2013-14, PMT JV had downgraded reserves for the Mid and South Tapti fields due to geological surprises. As a result, the production profile is envisaged only up to 2015-16 and the sale realization (net of operating expenses and statutory levies) is being transferred to Site Restoration Fund pursuant to the Production Sharing Contract. Under these circumstances, the field has been fully depleted and depletion aggregating to Rs. 184.69 million (Previous year Rs. 9,090.44 million) has been charged to the Statement of Profit and Loss. Similarly, as at March 31, 2015, the provision for impairment of Rs. 263.62 million (Previous year Rs. 441.87 million) representing the net asset value and Capital Work in Progress in Tapti field has been carried in the financial statements.

6. In respect of Ratna R series field, a producing field of the company, MOPNG had during 1995-96, issued an award of the contract for development of the field to a consortium of Essar Oil Limited and Premier Oil limited consequent to which the company stopped production. Pending the execution of the Production Sharing Contract, the company continues to include Rs. 2,313.96 million in gross producing property (including provision for abandonment of '891.74 million.) The said field has been fully impaired and the net carrying amount as at March 31,2015 is Nil.

7. Other adjustment includes an amount of Rs. 4,196.00 million which Government of India (GoI) vide letter dated 1st January, 2015, has reimbursed as compensation for past costs incurred by ONGC in certain discovered fields awarded to Joint Ventures/ Private Companies. Accordingly an amount of Rs. 257.17 million has been adjusted against the Net Carrying Amount of assets of Panna, Mukta, Tapti and Ravva fields and balance amount of Rs. 3,938.83 million has been accounted for as other income during the year.

8. Plant and Equipment includes an amount of Rs. 8,448.52 million (Previous Year Rs. 8,436.64 million) in respect of Capital Works in Progress (CWIP) for C2-C3 plant (including C3-C4 blending and recycling facilities) which is mechanically complete and will be capitalized on completion of test run.

9. During the Financial year 2004-05, the company had acquired 90% Participating Interest in Exploration Block KG-DN-98/2 from M/s Cairn Energy India Ltd. for a lump sum consideration of Rs. 3,711.22 million which, together with subsequent exploratory drilling costs of wells had been capitalised under exploratory wells in progress. During the financial year 2012-13, the company had acquired the remaining 10% participating interest in the block from M/s Cairn Energy India Ltd. on actual past cost basis for a consideration of Rs. 2,124.44 million. Initial in-place reserves have been established in this block and adhering to original PSC time lines, a Declaration of Commercially (DoC) with a conceptual cluster development plan was submitted on 21.12.2009 for Southern Discovery Area and on 15.07.2010 for Northern Discovery Area. Thereafter, in the revised DoC submitted in December, 2013, Cluster wise development of the Block had been envisaged by division of entire development area into three clusters. The DoC in respect of Cluster II has been reviewed by the Management Committee (MC) of the block on 25.09.2014 and preparation of Field Development Plan (FDP) in progress. The review of DOC in respect of Cluster I and Cluster III by the MC is pending as on 31st March, 2015.

The exploration period of this block had been restructured by Government up to 29.12.2013 in accordance with the Rig Holiday Policy and further extended to 25.1.2014. Under the New Policy guidelines in this regard, the Government has permitted the contractor to undertake appraisal drilling, seismic API and related activities till submission of FDP which is currently underway and drilling of two appraisal wells is in progress. Pending approval of FDP by the MC in respect of Cluster II and review of DoC by the MC in respect of Cluster I and III, as a matter of abundant caution, the company has retained the provision of Rs.17,216.18 million (Previous Year Rs. 17,210.82 million) towards acquisition costs and cost of exploratory wells.

10. With effect from 28th February, 2015, ONGC Mangalore Petrochemicals Limited has become subsidiary (previous year Joint venture) of ONGC on account of direct holding of 48.99% (previous year 46%) and indirect holding of 51.00% (previous year 3%) stake through subsidiary company MRPL.

11. The Company is restrained from diluting the investment in the respective companies till the sponsored loans are fully repaid as per the covenants in the loan agreements.

12. Shares of Oil Spill response limited valued at GBP one each at the time of issuance. Total value in INR at the time of issuance of shares was Rs. 6,885/-.

13. Loan to ONGC Videsh limited (wholly owned subsidiary) amounting to Nil (previous year Rs. 50,000 million) has been converted into nil (previous year 500 million) fully paid Equity Shares of Rs. 100 each.

14. Loans and advances to employees include an amount of Rs. 0.24 million (Previous Year Rs. 0.37 million) outstanding from Key Managerial Personnel.

15. In Ravva Joint Venture, the demand towards additional profit petroleum raised by Government of India (GoI), due to differences in interpretation of the provisions of the Production Sharing Contract (PSC) in respect of computation of Post Tax Rate of Return (PTRR), based on the decision of the Malaysian High Court setting aside an earlier arbitral tribunal award in favour of operator, was disputed by the operator M/s Cairn India Ltd. The company is not a party to the dispute but has agreed to abide by the decision applicable to the operator. The company had made a provision towards the claim made by the GoI in earlier years and the amount of provision outstanding as on 31th Mar, 2015 is Rs. 10,513.79 million (equivalent to USD 167.84 million) after adjustments for interest and exchange rate fluctuations. The GoI had recovered the above amount [including interest thereon USD 54.88 million (Rs. 3437.68 million)] from the company in earlier years which has been carried as recoverable under Long Term Loans and advances in the Balance Sheet as at 31st March, 2015.

In subsequent legal proceedings, the Appellate Authority of the Honourable Malaysian High Court of Kuala Lumpur had set aside the decision of the Malaysian High Court and the earlier decision of arbitral tribunal in favour of operator was restored, against which the GoI has preferred an appeal before the Federal Court of Malaysia. The Federal Court of Malaysia, vide its order dated 11th October, 2011, has dismissed the said appeal of the GoI.

The company has taken up the matter regarding refund of the recoveries made in view of the favorable judgment of the Federal Court of Malaysia with MoP&NG. However, according to a communication dated 13th January, 2012 received, MoP&NG expressed the view that ONGC's proposal would be examined when the issue of ONGC carry under Ravva PSC is decided in its entirety by the Government along with other partners.

In view of the perceived uncertainties in obtaining the refund at this stage, the provision made in the books as above has been retained and netted off against the amount recoverable as above in the financial statements for the year ending 31st Mar 2015. (Figures in INR are reinstated).

16. During the financial year 2010-11, the Oil Marketing Companies, nominees of the GoI recovered USD 32.07 million (Rs. 2,009.02 million) ONGC's share as per directives of GoI in respect of Jointly Controlled Assets-Panna Mukta and Tapti. The recovery is towards certain observations raised by auditors appointed by the Director General of Hydrocarbons (DGH) under Production Sharing Contract (PSC) for the period 2002-03 to 2005-06 in respect of cost and profit petroleum share payable to GoI. BGEPIL along with RIL ("Claimants") have served a notice of arbitration on the GoI in respect of dispute, differences and claims arisen in connection with the term of Panna, Mukta and Tapti PSCs. Since the company is not a party to the arbitration proceedings, it had requested MoP&NG that in case of an arbitral award the same be made applicable to ONGC also, as a constituent of contractor for both the PSCs. Subsequently, vide letter dated July 4, 2011 MoP&NG has advised ONGC not to participate in the arbitration initiated by RIL and BGEPIL under Panna Mukta and Tapti PSCs. MoP&NG has also stated that in case of an arbitral award, the same will be applicable to ONGC also as a constituent of the contractor for both the PSCs. Pending final arbitral award, the same has been shown as Receivable from GoI under Advance Recoverable in Cash or Kind or Value to be Received' under Long Term Loans and Advances. (Figures in INR are reinstated).

17. Deposit under Site Restoration Fund Scheme:

A sum of Rs. 125,443.80 million till 31.03.2015 (previous year '113,101.59 million) has been deposited with banks under section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipments and installations in a manner agreed with Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment etc. This amount is considered as restricted cash and hence not considered as 'cash and cash equivalents'.

18. The deposits maintained by the company with banks comprise time deposit, which can be withdrawn by the company at any point without prior notice or penalty on the principal.

19. Amount deposited in unclaimed dividend account is earmarked for payment of dividend and cannot be used for any other purpose.

20. Includes Rs. 21,067.60 million (Previous year Rs. 2,092.23 million) towards differential royalty being deposited from 1st February, 2014 as per the interim order of the Hon'ble Supreme Court of India. (also refer Note no. 44.1.1.b)

21. Includes an amount of Rs. 0.13 million (Previous Year Rs. 0.13 million) outstanding from Key Managerial Personnel.

22. In terms of the decision of Government of India (GOI), the company has shared Rs. 362,996.20 million (Previous Year Rs. 563,842.85 million) towards under-recoveries of Oil Marketing Companies (OMCs) on price sensitive products viz. Diesel (till 18th October'14), Domestic LPG and PDS Kerosene for the year 2014-15 (Nil in 4th quarter of FY 2014-15 as per GoI directives) by extending the discount in the prices of Crude Oil, Domestic lPg and PDS Kerosene based on the rates of discount communicated by Petroleum Planning and Analysis Cell (PPAC) and Ministry of Petroleum and Natural Gas (MoP&NG). The impact of discount is as under:

23. For Crude Oil produced in Assam, sales revenue is based on the pricing formula provided by MoP&NG. Revenue from rest of nominated crude is accounted in terms of Crude Oil Sales Agreements (COSAs) already signed and made effective from 1st April, 2010.

24. During the previous year, based on the directives issued by MoP&NG and Petroleum Planning and Analysis Cell (PPAC) vide letters dated 31st May, 2012 and 1st June, 2012 respectively, w.e.f. 1st April, 2012, refineries started making deductions from ONGC payments towards Octroi/ VAT/ CST on discounts allowed by ONGC to refineries on supplies of crude oil. Total deduction made by refineries on this account from 1st April, 2012 to 30th September, 2013 amounting to Rs. 25,032.60 million (includes Rs. 15,846.70 million for the year 2012-13) was provided for. The company had revised the sales revenue and corresponding statutory levies w.e.f. 1st April 2012 onwards, considering deductions made by refineries based on MoP&NG directives. Aforesaid provision made by the Company till 30th September, 2013 had also been written back.

25. Recognition of revenue on account of Short Lifted Gas amounting to Rs. 1,774.13 million (Previous Year Rs. 1,253.74 million) has been postponed. This will be recognized when there is reasonable certainty regarding ultimate collection as per the policy of the company.

26. Sales revenue of Natural Gas is based on gas price fixed by GoI from time to time. Till October'14, sales revenue is based on MoP&NG order dated 31st May'10 wherein effective from 1st June'10, the price of APM gas produced by NOCs was fixed at US$ 4.2/mmbtu less royalty (on NCV basis). On 25th October'14, GoI notified "New Domestic Natural Gas Pricing Guidelines, 2014" applicable from 1st November'14. Under said guidelines, price of domestic gas produced in India during 1st November'14 to 31st March'15 has been fixed as US$ 5.05/mmbtu (on GCV basis). For gas consumers in North-East, consumer price is 60% of the producer price and the difference between producer price and consumer price is paid to the company through GoI Budget and shown as 'North-East Gas Subsidy'.

27. The company is supplying majority of Natural gas to Gas Authority of India Limited (GAIL) which also purchases gas from other sources and sells to APM and non-APM consumers. Based on the Government directives, excess in Gas Pool Account at the end of financial year is transferred to ONGC/ OIL in accordance with their contribution. Based on the details received from GAIL, an amount of Rs. 2,292.30 million (Previous year Rs. 3,508.10 million) for Gas Pool Receipts for the current year and Rs. 974.74 million (Previous year Rs. 212.37 million) on account of interest on Gas Pool Account has been considered as 'Surplus from Gas Pool Account'.

28. Excise duty on sale of product has been deducted from Sales revenue and Excise duty shown above represents the difference between Excise duty on opening and closing stock of finished goods.

29. During the year, Government has directed the company to make following payments/adjustments towards differential royalty at uniform rate of discount for the period 2008-09 to 2013-14 to the State and Central Government:

30. Disclosure under the Revised Accounting Standard -15 on "Employee Benefits"

31. Brief Description: A general description of the type of Employee Benefits Plans is as follows:

32.All the employee benefit plans of the Company are run as Group administration plans (Single Employer Scheme) including employees seconded to ONGC Videsh Limited (OVL), 100% subsidiary.

33. Earned Leave (EL) Benefit

Accrual - 30 days per year

Encashment while in service - 75% of Earned Leave balance subject to a maximum of 90 days per calendar year

Encashment on retirement - maximum 300 days

34. Good Health Reward (Half pay leave)

Accrual - 20 days per year

Encashment while in service - Nil

Encashment on retirement - 50% of Half Pay Leave balance.

35. Gratuity

15 days salary for each completed year of service. Vesting period is 5 years and the payment is restricted to Rs. 1.00 million.

36. Post-Retirement Medical Benefits

Upon payment of one time prescribed contribution by the employees, full medical benefits on superannuation and on voluntary retirement subject to the completion of minimum 20 years of service and 50 years of age.

37. Terminal Benefits

a. At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligible for Transfer Travelling Allowance.

b. Employees are gifted gold coins on retirement up to 31.01.2015, depending upon their level and years of service. This scheme has been discontinued w.e.f. 27.02.2015. Accordingly Rs. 5,854.33 million provided in earlier years has been written back (Note 7 & 11). Re-measured figures are restated accordingly in note no. 37.3 and 37.5.

38. The amounts included in the fair value of plan assets of gratuity fund in respect of Reporting Enterprise's own financial instruments and any property occupied by, or other assets used by the reporting enterprise are Nil (Previous Year Nil)

The discount rate is based upon the market yield available on Government bonds at the Accounting date with a term that matches. The salary growth rate takes account of inflation, seniority, promotion and other relevant factor on long term basis. Expected rate of return on plan assets is based on market expectation, at the beginning of the year, for return over the entire life of the related obligation.

39. Disclosure under Accounting Standard -17 on "Segment Reporting"

The segment information is presented under the Notes to the Consolidated Financial Statements as required under the standard.

40. Disclosure under Accounting Standard -18 on "Related Party Disclosure":

40.1 Name of related parties and description of relationship:

Jointly Controlled Entity

i. Petronet LNG Limited

ii. ONGC Teri Biotech Limited

iii. Mangalore SEZ Limited

iv. ONGC Petro-additions Limited

v. ONGC Tripura Power Co. Limited

vi. Dahej SEZ Limited

vii. ONGC Mangalore Petrochemicals Limited (up to 28.02.2015)

40.2 Key Managerial Personnel:

i) Shri D K Sarraf, Chairman and Managing Director

ii) Shri A K Banerjee, Director (Finance) up to 30.04.2015

iii) Shri T K Sengupta, Director (Offshore)

iv) Shri Ashok Verma, Director (Onshore) from 19.06.2014

v) Shri D D Misra, Director (Hr) from 01.08.2014

vi) Shri A K Dwivedi, Director (Exploration) from 16.03.2015

vii) Shri Shashi Shanker, Director (T&FS)

viii) Shri N K Verma, Director (Exploration) up to 26.08.2014

ix) Shri K.S Jamestin, Director (HR) up to 31.07.2014

x) Shri N K Sinha, Company Secretary

41. Disclosure under Accounting Standard - 19 on 'Leases'

The company has certain office/residential premises on Operating Lease which are cancellable by giving appropriate notice as per the respective agreements. During the year Rs. 977.22 million (Previous year Rs. 934.64 million) had been paid towards cancellable Operating Lease.

42. The financial statements of 117 (previous year 124) out of 134 (previous year 135) JVs/NELP blocks have been incorporated in the accounts to the extent of Company's participating interest in assets, liabilities, income, expenditure and profit / (loss) before tax on the basis of statements certified in accordance with production sharing contract and in respect of balance 17 (previous year 11) JVs/NELP blocks, the figures have been incorporated on the basis of uncertified statements prepared under the production sharing contracts. Both the figures have been adjusted for changes as per Note No. 2.j.1 The financial positions of JV/NELP are as under:

43. As per the Production Sharing Contracts signed by the Company with the Gol, the Company is required to complete Minimum Work Programme (MP) within stipulated time. In case of delay in completion of the MWP, Liquidated Damages (LD) is payable for extension of time to complete MWP Further, in case the Company does not complete MWP or surrenders the block without completing the MP, the estimated cost of completing balance work programme is required to be paid to the Gol. During the year LD amounting to (net of reversal) Rs. 24.08 million (Previous year Rs. 245.65 million) and cost of unfinished MWP (net of reversal) Rs. 1,420.64 million (Previous year (net of reversal) Rs. (-) 59.14 million), paid/payable to the Gol is included in survey and wells written off expenditure respectively.

44. In respect of 3 NELP blocks (previous year 12) which have expired as on 31st March, 2015, the Company's share of Unfinished Minimum Work Programme (MWP) amounting to '820.40 million (previous year to Rs. 18,014.12 million) has not been provided for since the company has already applied for further extension of period in these blocks as 'excusable delay'/special dispensations citing technical complexities, within the extension policy of NELP Blocks, which are under active consideration of GoI. The delays have occurred generally on account of pending statutory clearances from various Govt. authorities like Ministry of Defense, Ministry of Commerce, environmental clearances, State Govt. permissions etc. The above MWP amount of '820.40 million (previous year Rs. 18,014.12 million) is included in MWP commitment under note no. 44.1.6.

45. The company has relinquished 30% Participating Interest (PI) in SGL Field with future interest in block RJ-ON/6 Jaisalmer Basin Rajasthan to Focus Energy Ltd (Operator), on condition that Focus Energy Ltd (Operator) to pay towards 100% past royalty obligation, PEL/ML fees, other statutory levies and waive off development/ Production costs payable by OnGc in SGL Field of the block as well as take all future 100% royalty obligation of ONGC as licensee and also not exercise its option of acquiring 30% PI in two gas discoveries namely SSG-1 and SSF-2 in Block. Pending farm out agreement/ government approval, no adjustment is made in the accounts in respect of relinquishment of RJ-ON/6.

46. Disclosure under Accounting Standard - 28 and Guidance note on Accounting for Oil and gas producing Activities (Revised) on "Impairment of Assets"

47. The Company is engaged mainly in the business of oil and gas exploration and production in On-shore and Offshore. In case of onshore assets, the fields are using common production/transportation facilities and are sufficiently economically interdependent to constitute a single cash generating unit (CGU). Accordingly, impairment test of all onshore fields are performed in aggregate of all those fields at the Asset Level. In case of Offshore Assets, a field is generally considered as CGU except for fields which are developed as a Cluster, for which common facilities are used, in which case the impairment testing is performed in aggregate for all the fields included in the cluster.

48. The Value in Use of producing/developing CGUs is determined under a multi-stage approach, wherein future cash flows are initially estimated based on Proved Developed Reserves. Under circumstances where the further development of the fields in the CGUs is under progress and where the carrying value of the CGUs is not likely to be recovered through exploitation of proved developed reserves alone, the Proved and probable reserves (2P) of the CGUs are also taken for the purpose of estimating future cash flows. In such cases, full estimate of the expected cost of evaluation/development is also considered while determining the value in use.

49. In assessing value in use, the estimated future cash flows from the continuing use of the assets and from its disposal at the end of its useful life are discounted to their present value. The present values of cash flows are determined by applying discount rates of 19.71% (previous year 19.10 %) for Rupee transactions and 13.89% (previous year 13.00 %) for crude oil and value added products revenue, which are measured in USD. Future cash inflows from sale of crude oil and value added products are computed using the future prices, on the basis of market-based average prices of the Dated Brent crude oil as per assessment by 'Platt's Crude Oil Market wire' and its co-relations with benchmark crudes and other petroleum products. Future cash flows from sale of natural gas is also computed based on the expected future prices on the basis of the notification issued by the Government of India and discounted applying the rate applicable to the cash flows measured in USD in view of the new pricing guidelines issued by GoI. (refer note no.26.5)

50. During the year Rs. 2,136.53 million (Previous Year Rs. 1,025.48 million) is provided as impairment loss. Out of this, an amount of Rs. 380.89 million (Previous Year Rs. 355.97 million) has been provided as additional impairment in respect of onshore CGUs - Jodhpur and Silchar. Rs. 146.40 million (Previous Year Rs. 69.05 million) has been provided for already impaired offshore CGU- Ratna. For B 121 an amount of '49.73 million (Previous Year '20.09 million) has been provided as additional impairment. In addition, Rs. 367.91 million (Previous Year Rs. 30.42 million) pertaining to block CY-OS- 90/1 (PY-3) has been provided as presently the field does not have any potential to produce. An amount of Rs. 1,025.81 million (Previous Year Rs. 79.40 million) mainly represents additional impairment charge in respect of certain onshore Pre- NELP joint venture blocks (RJ ON 6, CB ON 2 and CB ON 3) due to adjustment of cost recovery from revenue and sharing of 100% royalty. Balance amount of Rs. 73.38 million, Rs. 91.14 million (previous year Rs. 15.90 million) and Rs. 1.27 million has been provided for Ankleswar, Hazira Plant and Retail Trading respectively.

51. Further, Rs. 201.88 million (Previous Year Rs. 806.08 million) impairment losses has been reversed because of decrease in Abandonment cost estimation in respect Offshore CGU D-18 and Tapti.

52. Impairment testing of assets under exploratory phase (Exploratory Wells in Progress) has been carried out as on 31.03.2015, and an amount of Rs. 1,172.15 million (Previous year Rs. 2,546.46 million) has been provided during the year 2014-15 as impairment loss. Further, Rs. 1,203.23 million (Previous Year Nil) impairment loss has been reversed in the Statement of Profit and Loss as exploratory phase assets have been transferred to producing properties.

53. Other Disclosures under Schedule III to the Companies Act, 2013:

54. Contingent liabilities and commitments (to the extent not provided for)

55. Contingent Liabilities:

Claims against the Company/ disputed demands not acknowledged as debt:-

(Rs. in million)

Particulars As at As at 31st March, 31st March, 2015 2014 I In respect of Company

i. Income Tax 80,032.68 55,087.45

ii. Excise Duty 8,572.86 9,406.06

iii. Custom Duty 190.61 1,599.77

iv. Royalty (Note - 44.1.1.b) 117,738.83 117,301.90

v. Cess 6.57 6.57

vi. AP Mineral Bearing Lands (Infrastructure) Cess 2,371.76 2,211.27

vii. Sales Tax 24,776.47 46,086.36

viii. Service Tax 1,374.57 4225.07

ix. Octroi 205.52 68.54

x. Specified Land Tax (Assam) 3,863.05 3,528.89

xi. Claims of contractors (Incl. LAQ) in Arbitration/Court 72,750.49 50,783.08

xii. Employees Provident Fund 66.35 66.35

xiii. Others 53,578.89 53,911.41

Sub Total (A) 365,528.65 344,282.72

II In respect of Joint Ventures

i. Income Tax 8.91 8.91

ii. Excise Duty 4.17 4.17

iii. Custom Duty 1,473.86 3,798.73

iv. Sales Tax and Service Tax 2,880.48 2,879.82

v Claims of contractors in Arbitration / Court 5,356.90 5,095.94

vi. Others 867.31 854.74

Sub Total (B) 10,591.63 12,642.31

TOTAL (A B) 376,120.28 356,925.03

a. The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax/Statutory/Government Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. Future cash outflows in respect of the above are determinable only on receipt of judgments/decisions pending with various forums/ authorities.

b. In terms of the statutory provisions of Oilfields (Regulation and Development) Act, 1948 (ORDA), Petroleum & Natural Gas (PNG) Rules 1959 and Notifications issued thereunder; the Company is liable to pay royalty to Central Government (GoI) and State Governments, on production of Crude Oil and Natural Gas from offshore fields and onshore fields, respectively. Since 2008-09, the Company has been paying royalty on crude oil at realized price which is net of under-recovery of the OMCs shared by the Company as per GoI directives. On an application filed by the State of Gujarat, the Hon'ble High Court of Gujarat in its order dated 30.11.2013 has directed the Company to pay the shortfall of royalty on crude oil produced from the onshore fields in the State of Gujarat on pre-discount prices from 01.04.2008 onwards. Based on the Special Leave Petition filed by the Company against the said order of the Hon'ble High Court of Gujarat, pending further orders, Hon'ble Supreme Court vide order dated 13.02.2014 stayed the operation of the impugned judgment subject to the condition that the company pays royalty to the State of Gujarat on pre-discounted price of crude oil w.e.f. 01.02.2014 onwards. Accordingly, differential amount of Rs. 117,242.00 million (reduced to the extent Rs. 16,440.00 million which is paid to Gujarat Govt.- refer Note No. 31.2) on this account for the period from April, 2008 to March, 2015 C116,326.96 million as on 31.03.2014) has been considered as Contingent Liability. Pending the final outcome of the SLP filed before the Hon'ble Supreme Court, differential royalty (royalty on pre-discount price minus royalty on post-discount price) amounting to Rs. 21,067.60 million deposited w.e.f. February, 2014 C2,092.23 million as on 31.03.2014) in terms of Hon'ble Supreme Court order has been shown as deposit.

56. Corporate Guarantees executed by the Company on behalf of its wholly owned subsidiary, ONGC Videsh Limited (OVL):

57. Guarantees executed for financial obligations:

i) Amount of Guarantee Rs. 304,152.81 million (Previous year Rs. 321,657.40 million)

ii) Amount outstanding Rs. 301,671.35 million (Previous year Rs. 314,417.66 million)

44.1.4 Corporate Guarantees executed by the Company on behalf of its subsidiary, MRPL:

i) Amount of Guarantee Rs. 29,754.00 million (Previous year Rs. 13,513.50 million)

ii) Amount outstanding Rs. 3,290.04 million (Previous year Rs. 7,370.56 million)

58. Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account:-

i) In respect of Company: Rs. 134,081.19 million (Previous year Rs. 83,351.44 million).

ii) In respect of Joint Ventures: Rs. 3,842.99 million (Previous year Rs. 4,367.54 million).

59. Other Commitments

Estimated amount of Minimum Work Programme (MWP) committed under various 'Production Sharing Contracts' with Government of India/ Nominated Blocks:

i) In respect Nominated Blocks Nil (Previous year '441.59 million).

ii) In respect of NELP blocks in which the Company has 100% participating interest: Rs. 3,000.14 million (Previous year Rs. 9,600.47 million).

iii) In respect of NELP blocks in Joint Ventures, company's share: Rs. 32,705.26 million (Previous year '62,247.39 million).

60. The Company has given an undertaking to The State Bank of India, for a Rupee term loan agreement amounting to Rs. 30,350 million (previous year Rs. 30,350 million) in respect of ONGC Tripura Power Co. Limited (OTPC) for not to dilute the shareholding till two years after Commercial Operation Date (COD) of the project and to bear any cost overrun to the extent of 10% of the estimated project cost of Rs. 40,470 million.

61. The year-end reserves of the company have been estimated by the Reserves Estimation Committee (REC) which follows international reservoir engineering procedures consistently. The company has adopted deterministic approach for reserves estimation and is following Society of Petroleum Engineers (SPE) - 1997 guidelines which defines reserves as "estimated volumes of crude oils, condensate, natural gas, natural gas liquids and associated substances anticipated to be commercially recoverable from known accumulations from a given date forward, under existing economic conditions, by established operating practices, and under current Government regulations." Volumetric estimation is the main procedure in estimation, which uses reservoir rock and fluid properties to calculate hydrocarbons in-place and then estimate that portion which will be recovered from it. As the field gets matured with reasonably good production history is available then performance method such as material balance, simulation, decline curve analysis are applied to get more accurate assessments of reserves.

The Company uses the services of third party agencies for due diligence and it gets the reserves of its assets audited by third party periodically by internationally reputed consultants who adopt latest industry practices for their evaluation.

The annual revision of estimates is based on the yearly exploratory and development activities and results thereof. New in- place Volume and Ultimate Reserves are estimated for new field discoveries or new pool discoveries in already discovered fields. Also, appraisal activities lead to revision in estimates due to new subsurface data. Similarly, reinterpretation exercise is also carried out for old fields due to necessity of revision in petro-physical parameters, updating of static and dynamic models and performance analysis leading to change in reserves. Intervention of new technology, change in classifications and contractual provisions also necessitates revision in estimation of reserves.

62. The Company has a system of physical verification of Inventory, Fixed Assets and Capital Stores in a phased manner to cover all items over a period of three years. Adjustment of differences, if any, is carried out on completion of reconciliation.

63. Discrepancies of crude oil of 96,496 MT (valued at Rs. 395.47 million as on March 31,2014) between physical and book records at Ankleshwar Asset have been ascertained by the management during the year and accordingly these have been written off/adjusted in inventories. Further, 70,746 MT of pit oil lying in book of Ahmedabad Asset (valued at nil as on March 31,2014) has also been written off during the year. These write offs and consequential adjustments thereto have been made on account of over reporting of crude oil production in earlier financial years. The discrepancies as mentioned above are under investigation by the appropriate authorities.

64. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

65. Some balances of Trade/Other Receivables, Trade/Other Payables and Loans and Advances are subject to confirmation/reconciliation. Adjustments, if any, will be accounted for on confirmation/reconciliation of the same, which will not have a material impact.

66. Previous year's figures have been regrouped/reclassified, wherever necessary, to conform to current year's classification.

67. Figures in parenthesis as given in these Notes to Financial Statement relate to previous year.


Mar 31, 2013

1. Corporate information

Oil and Natural Gas Corporation Limited (''ONGC'' or ''the Company'') is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. Its Shares are listed and traded on Stock exchanges in India. The Company is engaged in exploration, development and production of crude oil and natural gas.

2.1 Subsequent to the date of balance sheet, ONGC Petro-addition Limited has allotted equity shares against the advance for equity of Rs. 3,328.69 million.

2.2 Loans and advances to employees include an amount ofRs.0.50 million (Previous YearRs.0.11 million) outstanding from whole time directors.

2.3 In Rawa Joint Venture, the demand towards additional profit petroleum raised by the Government of India (Gol), due to differences in interpretation of the provisions of the Production Sharing Contract (PSC) in respect of computation of Post Tax Rate of Return (PTRR), based on the decision of the Malaysian High Court setting aside an earlier arbitral tribunal award in favour of operator, was disputed by the operator M/s Cairn Energy India Pty Ltd. The company is not a party to the dispute but has agreed to abide by the decision applicable to the operator. The company had made a provision towards the claim made by the Gol in earlieryears and the amount of provision outstanding as on 31st March, 2013 isRs.9,129.07 million (equivalenttoUSD 167.84 million) after adjustments for interest and exchange rate fluctuations. The Gol had recovered the above amount [including interest thereon USD 54.88 million (Rs. 2,984.92 million)] from the company in earlier years which has been carried as recoverable under Long Term Loans and advances in the Balance Sheet as at 31 st March, 2013.

In subsequent legal proceedings, the Appel late Authority of the Honorable Malaysian High Court of Kuala Lumpur had set aside the decision of the Malaysian High Court and the earlier decision of arbitral tribunal in favour of operator was restored, against which the Gol had preferred an appeal before the Federal Court of Malaysia. The Federal Court of Malaysia, vide its order dated 11 th October, 2011, had dismissed the said appeal of the Gol.

The company has taken up the matter regarding refund of the recoveries made in view of the favourable judgment of the Federal Court of Malaysia with MoP&NG. However, according to a communication dated 13th January 2012 received, MoP&NG expressed the view that ONGC''s proposal would be examined when the issues of ONGC carry under Rawa PSC is decided in its entirety by the Government along with other partners.

In view of the perceived uncertainties in obtaining the refund at this stage, the provision made in the books as above has been retained and netted off against the amount recoverable as above in the financial statements for the year ended 31 st March, 2013.

3. Deposit under Site Restoration Fund Scheme:

Asum ofRs. 101,331.21 million till 31.03.2013 (previous yearRs. 91,825.72 million) has been deposited with banks under section 33ABAof the Income TaxAct, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipments and installations in a manner agreed with Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment etc. This amount is considered as restricted cash and hence not considered as ''cash and cash equivalents''.

4.1 This includes an amount of Rs. 0.56 million (previous yearRs. 0.56 million) in respect of Carbon Credits.

5.1 The deposits maintained by the company with banks comprise time deposit, which can be withdrawn by the company at any point without prior notice or penalty on the principal. Fixed deposits ofRs. Nil (Previous yearRs.52,380.00 million) has been pledged to Banksagainst Short term loan taken from Banks.

5.2 Amount deposited in unclaimed dividend account is earmarked for payment of dividend and cannot be used for any other purpose.

6.1 Loans and advances to employees include an amount ofRs. 0.39 million (Previous YearRs. 0.24 million) outstanding from whole time directors.

6.2 During the financial year 2010-11, the Oil Marketing Companies, nominees of the Gol recovered USD 32.07 million (Rs. 1,744.29 million), ONGC''s share as per directives of Gol in respect of Jointly Controlled Assets - Panna, Mukta & Tapti. The recovery is towards certain observations raised by auditors appointed by the Director General of Hydrocarbons (DGH) under Production Sharing Contract (PSC) for the period 2002-03 to 2005-06 in respect of cost and profit petroleum share payable to Gol. BGEPIL along with RIL ("Claimants") have served a notice of arbitration on the Gol in respect of dispute, differences and claims arisen in connection with the term of Panna, Mukta & Tapti PSC''s. Since the company is not a party to the arbitration proceedings, it had requested MoP&NG that in case of an arbitral award, the same be made applicable to ONGC also, as a constituent of contractor for both the PSC''s. Subsequently, vide letter dated July 4,2011 MoP&NG has advised ONGC not to participate in the arbitration initiated by RIL & BGEPIL under Panna, Mukta & Tapti PSC''s. MoP&NG has also stated that in case of an arbitral award, the same will be applicable to ONGC also as a constituent of the contractor for both the PSC''s. Pending final arbitral award, the same has been shown as Receivable from Gol under ''Advance Recoverable in Cash or in kind orfor value to be received''.

7.1 Crude Oil Sales Agreements (COSA) with Indian Oil Corporation Limited (IOC) has been signed on 20th September, 2012. Since the COSAis made effective from 1st April, 2010, necessary adjustments amounting to Rs. 7,289.50 million (inclusive of VAT Rs.306.54 million) for 2010-11 and 2011-12 considering revised crude prices for supplies made to IOC for the period from IstApril, 2010 to 31 st March, 2012 have been made in books of accounts during 2012-13, by way of issue of credit notes.

7.2 COSA with Chennai Petroleum Corporation Limited (CPCL) has been signed on 15th May, 2013. Since the COSA is made effective from IstApril, 2010, necessary adjustments amounting toRs. 171.03 million (inclusive of VATRs. 11.97 million) for 2010-11 and 2011 -12 considering revised crude prices for supplies made to CPCLfor the period from 1 st April, 2010 to 31 st March, 2012 have been made in books of accounts during 2012-13, by way of issue of credit notes.

7.3 COSA with Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited HPCL was signed and implemented during 2011-12. Sales revenue in respect of crude Oil supplied to Mangalore Refinery and Petrochemicals Limited (MRPL) is based on the pricing formula agreed with the refinery in terms of erstwhile Moll. For Crude Oil produced in Assam, sales revenue is based on the pricing formula provided by MoP&NG.

7.4 Based on the directives issued by MoP&NG and Petroleum Planning and Analysis Cell (PPAC) vide letters dated 31st May, 2012 and 1st June, 2012 respectively, w.e.f. 1 April, 2012, refineries started making deductions from ONGC payments towards Octroi/VAT/CST on discounts allowed by ONGC to refineries on supplies of crude oil. Total deduction made by refineries on this account for the period from IstApril, 2012 to 31st March, 2013 works out toRs. 15,846.70 million. The same amount has been provided for in the accounts.

7.5 Recognition of revenue on account of Short Lifted Gas amounting toRs. 571.42 million (Previous YearRs. 55.45 million) has been postponed. This will be recognized when there is reasonable certainty regarding ultimate collection as per the policy of the company.

7.6 Sales revenue of Natural Gas is based on producer price fixed by Gol vide letter dated 31.05.2010 in respect of APM gas produced by National Oil Companies (NOCs) at US$ 4.2/mmbtu inclusive of royalty effective from 01.06.2010. For APM consumers, except for consumers in North Eastern states, the consumer price is same as producer price, i.e. US$ 4.2/mmbtu inclusive of royalty. For APM consumers in North-East, consumer price is 60% of the producer price, i.e., US$ 2.52/ mmbtu inclusive of royalty and the difference between producer price and consumer price is paid to the company through Gol Budget up to allocated quantity and shown as ''North-East Gas Subsidy''.

7.7 The company is supplying majority of Natural gas to GAIL (India) Limited (GAIL) which also purchases gas from other sources and sells to APM and non-APM consumers. Based on the Government directives, excess in Gas Pool Account at the end of financial year is transferred to ONGC I OIL in accordance with their contribution. Based on the details received from GAIL, an amount ofRs. 3700.00 million for Gas Pool Receipts for the current year,Rs. 339.23 million on account of interest on Gas Pool Account and reversal ofRs. 441.50 million w.r.t. previous year''s balance in Gas Pool Account, has been considered as ''Surplus from Gas Pool Account'' as on 31 st March, 2013.

8.1 As per the Farm Out agreement dated 5th November, 2012 entered into by the company with INPEX Offshore East India Ltd (INPEX), the company has agreed to transfer 26% Participating Interest (PI) in Block KG-DWN-2004/6 to INPEX for a consideration of USD 9.10 million (Rs. 494.95 million), with effect from IstApril, 2012. The approval of the Government of India for the assignment of PI, which is a condition precedent to the above agreement, has been received on 15th April, 2013 and accordingly, the consideration ofRs. 494.95 million has been accounted under the head miscellaneous receipts.

9.1 The Government has revised the rate of Cess from Rs.2,500/MT to Rs.4,500/MT w.e.f. 17.03.2012, resulting in the material increase in the expenditure.

9.2 Excise duty on sale of product has been deducted from Sales revenue and Excise duty shown above represents the difference between excise duty on opening and closing stock of finished goods.

9.3.1 During the year, the Company has recognised additional liability ofRs. 5,079.53 million towards revision in Long Service Rewards Scheme. Further, in terms of DPE guidelines, the company has recognized liability of Rs.18,504.79 million towards superannuation benefits to employees. These have been allocated to activities as per the policy of the company.

10. Disclosure under the Revised Accounting Standard -15 on "Employee Benefits"

10.1 Brief Description: A general description of the type of Defined Benefit Plans is as follows:

10.1.1 Earned Leave (EL) Benefit :-

Accrual - 30 days per year

Encashment while in service - 75% of Earned Leave balance subject to a maximum of 90 days per calendar year Encashment on retirement - maximum 300 days

10.1.2 Good Health Reward (Half pay leave) :- Accrual - 20 days per year Encashment while in service - Nil

Encashment on retirement - 50% of Half Pay Leave balance.

10.1.3 Gratuity:-

15 days salary for each completed year of service. Vesting period is 5 years and the payment is restricted toRs. 1.00 million.

10.1.4 Post-Retirement Medical Benefits :-

Upon payment of one time prescribed contribution by the employees, full medical benefits on superannuation and on voluntary retirement subject to the completion of minimum 20 years of service and 50 years of age.

10.1.5 Terminal Benefits:-

At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligible for Transfer Travelling Allowance. Employees are gifted gold coins also, depending upon their level and years of service.

10.4 The amounts included in the fair value of plan assets of gratuity fund in respect of Reporting Enterprise''s own financial instruments and any property occupied by, or other assets used by the reporting enterprise areRs. Nil (Previous YearRs. Nil)

11 Disclosure under Accounting Standard -17 on "Segment Reporting"

The segment information is presented under the Notes to the Consolidated Financial Statements as required under the standard.

12 Disclosure under Accounting Standard -18 on "Related Party Disclosure":

12.1 Key Management Personnel:

Whole-time Functional Directors:

i) Shri Sudhir Vasudeva, Chairman and Managing Director

ii) Shri K.S. Jamestin

iii) Shri A. K. Banerjeefrom22.05.2012

iv) Shri P. K. Borthakurfrom 30.10.2012

v) Shri Shashi Shankerfrom 01.12.2012

vi) ShriN.K.VermafromOI.04.2013

vii) ShriS.V. Raoupto31.03.2013

viii) ShriU. N. Boseupto30.11.2012

ix) Shri A. K. Hazarikaupto30.09.2012

13 Disclosure under Accounting Standard -19 on ''Leases''

The company has certain office/residential premises on Operating Lease which are cancellable by giving appropriate notice as per the respective agreements. During the year Rs.914.03 million (Previous year Rs.799.74 million) had been paid towards cancellable Operating Lease.

14 Disclosure under Accounting Standard - 27 on Financial Reporting of Interest in Joint Ventures:

14.1.1 In respect of 16 NELP blocks (previous year 16) which have expired as on 31 st March, 2013, the Company''s share of Unfinished Minimum Work Programme (MWP) amounting to Rs. 19,560.95 million (previous year to Rs.23,949.27 million) has not been provided for since the company has already applied for further extension of period in these blocks as ''excusable delay''/ special dispensations citing technical complexities, within the extension policy of NELP Blocks, which are under active consideration of Gol. The delays have occurred generally on account of pending statutory clearances from various Govt, authorities like Ministry of Defense, Ministry of Commerce, environmental clearances, State Govt, permissions etc. The above MWP amount of Rs. 19,560.95 million (previous yearRs. 23,949.27 million) is included in MWP commitment under note no. 43.2.1.

14.1.2 As per the Production Sharing Contracts signed by the Company with the Gol, the Company is required to complete Minimum Work Programme (MWP) within stipulated time. In case of delay in completion of the MWP, Liquidated Damages (LD) is payable for extension of time to complete MWP. Further, in case the Company does not complete MWP or surrender the block without completing the MWP, the estimated cost of completing balance work programme is required to be paid to the Gol. LD amounting toRs. 293.30 million (Previous yearRs. 870.42 million) and cost of unfinished MWP Rs.217.14 million (Previous yearRs. 146.57 million) paid/payable to the Gol is included in survey and wells written off expenditure.

15 Disclosure under Accounting Standard - 28 on "Impairment of Assets"

15.1 The Company is engaged mainly in the business of oil and gas exploration and production where each cost centre used for depreciation (depletion) purposes is identified as independent Cash Generating Unit (CGU) for assessing the impairment in Producing Properties and fixed assets etc. on the basis of ''value in use''. The Company has tested all its CGUs for impairment as on 31.03.2013 by applying discount rates of 20.10% (previous year 20.40%) for Rupee transactions and 14.00% (previous year 13.67 %) for crude oil and value added products revenue measured in USD as on 31.03.2013.

15.2 During the yearRs. 3,014.50 million (Previous YearRs. 932.83 million) is provided as impairment loss. Out of this an amount of Rs. 2,363.50 million (Previous Year nil) has been provided in respect of Eastern Offshore Asset, Rajahmundry.Rs. 45.36 million (Previous YearRs. 83.30 million) has been provided as additional impairment in respect of onshore CGUs - Jodhpur and Silchar and for offshore CGU- Ratna,Rs. 31.02 million (Previous YearRs. 75.83 million) and D18Rs. 6.98 million (Previous Year nil) has been provided on account of increase in the estimate of abandonment liability. In addition,Rs. 23.40 million (Previous YearRs. 154.99 million) pertaining to block CY-OS-90/1 (PY-3) has been provided as presently the field does not have any potential to produce. An amount ofRs. 453.11 million (Previous YearRs. 540.14 million) mainly represents additional impairment charge in respect of certain onshore Pre-NELP Joint Ventures (RJ ON 6 and CB ON 2) due to adjustment of cost recovery from revenue and sharing of 100% royalty. Balance amount ofRs. 91.12 million has been provided in Rajahmundry onshore CGU for CWIP

Further,Rs. 756.47 million (Previous YearRs. 827.73 million) has been reversed as impairment loss for Onshore CGU - Silchar and Jodhpur during the year.

16 Other Disclosures under Schedule VI to the Companies Act, 1956:

16.1 Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account: -

i) In respect of Company-Rs.87,601.57 million (Previous yearRs. 114,069.33 million).

ii) In respect of Joint Ventures - Rs.5,611.71 million (Previous yearRs.3,561.76 million).

16.2 Other Commitments

16.2.1 Estimated amount of Minimum Work Programme (MWP) committed under various ''Production Sharing Contracts'' with Government of India/ Nominated Blocks:

i) In respect of Nominated Blocks Rs.958.54 million (Previous year Rs.282.68 million).

ii) In respect of NELP blocks in which the Company has 100% participating interest -Rs. 12,305.38 million (Previous year Rs.15,052.01 million).

iii) In respect of NELP blocks in Joint Ventures, company''s share- Rs.62,127.36 million (PreviousyearRs. 71,183.60 million). 16.2.2 The Board of directors has approved loan uptoRs. 50,000.00 million (Previous yearRs. 50,000.00 million) to Mangalore Refinery & Petrochemicals Limited (MRPL), a subsidiary of the Company. Out of whichRs. 33,000.00 million (previousyearRs. 26,000.00 million) has been disbursed and Rs. 17,000.00 million (previous year Rs.24,000.00 million) can be availed by MRPL on or before 30th September, 2013.

16.2.3 The Company has given an undertaking to Power Finance Corporation Limited (PFC), for an additional funding up toRs. 2,223.80 million (previousyearRs. 2,234.00 million) in respectof ONGC Tripura Power Co. Limited (OTPC) for cost overrun, if any.

16.3.1 The above claims I demands are at various stages of appeal. In the opinion of the management, these claims I demands are not tenable.

16.3.2 This includes an amount ofRs. 16,240.00 million towards infusion of one time grant to Post Retirement Benefit Scheme for conversion of defined benefitscheme to defined contribution scheme, pending approval from MoP&NG.

16.4 Corporate Guarantees executed by the Company on behalf of its wholly owned subsidiary, ONGC Videsh Limited (OVL) and ONGC Nile GangaBV (wholly owned subsidiary of OVL):

16.4.1 Guarantees executed forfinancial obligations:

i) Amount of GuaranteeRs. 91,285.50 million (Previous yearRs. 42,372.48 million)

ii) Amount outstandingRs. 73,774.85 million (Previous yearRs. 30,845.81 million)

16.4.2 Performance Guarantees executed underthe contracts:

Guarantee in respect of Sakhalin Project in favour of Exxonneftgas Ltd., M/s. Roseneft-S, SMNG-S and RN-Astra towards performance of OVL''s obligation under Joint Operating Agreementwithout any financial ceiling.

16.4.3 Corporate Guarantees executed by the Company on behalf of its subsidiary, MRPL:

i) Amount of Guarantee Rs. 12,237.75 million (Previous yearRs. 8,179.20 million)

ii) Amount outstandingRs. 11,262.75 million (Previous yearRs. 4,071.20 million)

17 Disclosure on Foreign currency exposures at year end that have not been hedged by derivative instrument or otherwise:

The Company has receivables and payables in foreign currency as at the balance sheet date. These foreign currency exposures are not hedged by any derivative instruments or otherwise.

18 The Company has a system of physical verification of Inventory, FixedAssets and Capital Stores in a phased manner to coverall items over a period of three years. Adjustment of differences, if any, is carried out on completion of reconciliation.

19 Some balances of Trade/Other Receivables, Trade/Other Payables and Loans & Advances are subject to confirmation/ reconciliation. Adjustments, if any, will be accounted for on confirmation/ reconciliation of the same, which will not have a material impact.

20 Previous year''s figures have been regrouped/ reclassified, wherever necessary, to confirm to current year''s classification.

21 Figures in parenthesis as given in these Notes to Financial Statement relate to previous year.


Mar 31, 2012

1. Corporate Information

Oil and Natural Gas Corporation Limited ('ONGC' or 'the Company') is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. Its Shares are listed and traded on Stock exchanges in India. The Company is engaged in exploration, development and production of Crude oil and natural gas.

Notes

1.1 Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.5 Per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1.2 Pursuant to the approval of the members dated 28.01.2011, during the financial year 2010-11, one Equity share having face value of Rs.10/- each had been sub-divided into two Equity Shares of Rs.5/- each and bonus shares in proportion of one new Equity bonus Share of Rs.5/- each held on 09.02.2011 (record date) had been allotted. Company has issued total 4,277.75 million (Previous Year 4,277.75 million) Equity shares of face value of Rs. 5 each issued as fully paid up by way of bonus shares during the period of five years immediately preceding the reporting date.

2.1 Represents assessed value of assets received as gift.

2.2 The Board of Directors has recommended a final dividend of Rs.2.00 per share which is subject to the approval of the shareholders in the ensuing Annual General Meeting over and above the interim dividend of Rs. 7.75 (Rs. 6.25 and Rs. 1.50) per share paid in two phases.

3.1 No amount is due for payment to investor education and protection fund.

4.1 Plant & Machinery includes an amount of Rs. 8,159.95 million (Previous Year Rs. 7,841.69 million) in respect of Capital Works in Progress (CWIP) for C2-C3 plant which is mechanically complete and will be capitalized on completion of test run which is pending due to non receipt of approval for allocation of gas from Ministry of Petroleum and Natural Gas (MoP & NG) for swap arrangement through GAIL.

5.1 During the financial year 2004-05, the company had acquired 90% participating Interest in Exploration Block KG-DWN-98/2 from M/s Cairn Energy India Ltd, for a lump sum consideration of Rs.3,711.22 million which, together with subsequent exploratory drilling costs of wells had been capitalized under Exploratory Wells in Progress. Initial-in-Place- Reserves have been established in this block and a conceptual development plan as part of the proposal for Declaration of Commerciality had been submitted on 21.12.2009 for Southern Discovery Area and on 15.07.2010 for Northern Discovery Area to Management Committee (MC) for review. There is no significant change in the status of this block during the current year. Pending final decision on the DOC by the MC, as a matter of abundant caution, the Company has made a provision of Rs. 9,412.09 million (including provisions created in earlier years Rs. 9,401.34) towards exploratory wells which are more than two years old from the date of completion of drilling.

5.2 As per the production sharing Contracts signed by the Company with the Gol, the Company is required to complete Minimum Work Programme (MWP) within stipulated time. In case of delay in completion of the MWP, Liquidated Damages (LD) is payable for extension of time to complete MWP. Further, in case the Company does not complete MWP or surrender the block without completing the MWP, the estimated cost of completing balance work programme is required to be paid to the Gol. LD amounting to Rs. 870.42 million (previous Year Rs. 113.72 million) and cost of unfinished MWP Rs. 146.57 million (Previous Year Rs. 919.81 million) paid / payable to the Gol is included in survey and wells written off expenditure.

6.1 GBP one each, total value Rs. 6,885/-

6.2 Since the Bond is maturing in September 2012, the same has been shown under Current Investment.

7.1 Loans and advances to employees include an amount of Rs.0.11 million (Previous Year Rs. 0.15 million) outstanding from whole time directors.

7.2 In Ravva Joint Venture, the demand towards additional profit petroleum raised by the Government of India (Gol), due to differences in interpretation of the provisions of the production sharing contract in respect of computation of post tax rate of return (PTRR), based on the decision of the Malaysian High Court Setting aside an earlier arbitral tribunal award in favour of operator, was disputed by the operator M/s Cairn Energy India Pvt. Ltd. The Company is not a party to the dispute but has agreed to abide by the decision applicable to the operator. The Company had made a provision towards the claim made by the Gol in earler years and the amount of provision outstanding as on 31st March, 2012 is Rs. 8,580.22 million (equivalent to USD 167.84 million) after adjustments for interst and exchange rate fluctuations. The Gol had recovered the above amount [including interest there on USD 54.88 million (Rs. 2,829.86 million)] from the company in earlier years which has been carried as recoverable under Long Term Loans and advances in the Balance Sheet as at 31st March, 2012.

In subsequent legal proceedings, The Appellate Authority of the Honourable Malaysian High Court of Kualal Lumpur had set aside the decision of the Malaysian High Court and the earlier decision of arbitral tribunal in favour of operator was restored, against which the Gol has preferred an appeal before the Federal Court of Malaysia. During the year, The Federal Court of Malaysia, vide its order dated 11th October, 2011, has dismissed the said appeal of the Gol.

The Company has taken up the matter regarding refund of the recoveries made in view of the favourable judgment of the Federal Court of Malaysia with MoP & NG. However, according to a communication dated 13th January, 2012 received, MoP & NG expressed the view that ONGC's proposal would be examined when the issue of ONGC carried under Ravva PSC is decided in its entirety by the Government along with other partners.

In view of the perceived uncertainites in obtaining the refund at this stage, the provision made in the books as above has been retained and netted off against the amount recoverable as above in the financial statements for the year ended 31st March, 2012.

7.3 The Finance (No.2) Act, 2009, has specified the definition of "undertaking" for the purpose of claiming tax holiday under section 80-IB(9) of Income Tax Act, 1961 to be 'all blocks licensed under a single contract' retrospectively whereas the company had earlier considered each "Well" as an undertaking. Since the Amendment still requires clairty on various issues and also considering the advice of legal experts, the company continued to make provision for tax withour considering the benefit under section 80-IB(9).

8. Deposit under Site Restoration Fund Scheme:

A sum of Rs. 91,825.72 million till 31.03.2012 (previous year Rs. 81,155.06 million) has been deposited with banks under Section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e towards removal of equipments and installations in a manner agreed with Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment etc. This amount is considered as restricted cash and hence not considered as 'cash and cash equivalents'.

9.1 The deposits maintained by the company with banks comprise time deposit, which can be withdrawn by the company at any point without prior notice or penalty on the principal. Fixed deposits of Rs. 52,380.00 million (previous year Nil) have been pledged to Banks against short term loan taken from Banks.

9.2 Amount deposited in unclaimed divided account is earmarked for payment of dividend and cannot be used for any other purpose.

10.1 Loans and advances to employees include an amount of Rs. 0.24 million (previous Year Rs. 0.11 million) outstanding from whole time directors.

10.2 During the financial year 2010-11, the Oil Marketing Companies, nominees of the Gol recovered USD 32.07 million (Rs. 1,639.55 million), ONGC's share as per directives of the Gol in respect of Jointly Controlled Assets-Panna Mukta & Tapti. The recovery is towards certain observations raised by auditors appointed by the Director General of Hydrocarbons (DGH) under production Sharing Contract (PSC) for the period 2002-03 to 2005-06 in respect of cost and profit petroleum share payable to Gol. BGEPIL along with RIL ("Claimants") have served a notice of arbitration on the Gol in respect of dispute, differences and claims arisen in connection with the term of panna, Mukla and Tapti PSC's. Since the company is not a party to the arbitration proceedings, it had request MoP&NG that in case of an arbitral award, the same be made applicable to ONGC also, as a constituent of contractor for both the PSCs. Subsequently, vide letter dated july 4,2011 MoP&NG has advised ONGC not to participate in the arbitration initiated by RIL&BGEPIL under Panna, Mukta & Tapti PSCs. MoP&NG has also stated that in case of an arbitral award, the same will be applicable to ONGC also as a constituent of the contractor for both the PSCs. Pending final arbitral award, the same has been shown as Receivable from the Gol under 'Advance Recoverable in Cash or in Kind'.

11.1 New Crude Oil Sales Agreements (COSAs), with Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), have been signed on 5th January, 2012 and 12th April, 2012 respectively. Since, the new COSA is made effective from 1st April, 2010, necessary adjustments amounting to Rs. 173.40 million considering revised crude prices for supplies made to BPCL and HPCL Refineries w.e.f 1st April, 2010 have been made in the accounts of 2011-12.

11.2 Sales revenue in respect of Crude Oil supplied to other refineries (other than BPCL and HPCL) is eased on (he pricing formula agreed with the refineries in items of eratwhile MoU. For crude oil produced in Assam, sales revenue is based on the pricing formula provided by MoP&NG. COSA with Indian Oil Corporation limited (IOCL) is under finalizalion stage, with proposed effective dates of 11,April. 2010. As IOC is making the payment as per initialed COSA, firs their provision amount n g to Rs. 2,010.70 million (Previous Year Rs. 1,075.10 million) has been made during the year Provision made till 31st March, 2012 is Rs.3.065.BD million (Previous Year Rs. 1,075.10 million).

11.3 Sales revenue of Natural Gas is based on producer price feed by the Col vide letter dated 31.05.2010 in re sped of ARM gas produced by National Oil Companies (NOCs) at USS 4.2/mm Mu inclusive of royally effective from 01.06.2010. For APM consumer, except for consumers in North Eastern states, the consumer price is same as producer price, i.e. US$ 4,21 mm be the Inside of royalty, For APM consumers in North-East, consumer price is 60% of the producer price, i ,e,, US$ 2,521 mmbtu inclusive of royalty and the difference between producer price and consumer price is paid lo the company through UneGol Budget and shown as'North-East Gas Subsidy'.

11.4 The company Is supplying majority of Natural gas to GAIL (India) Limited which also purchases gas from other sources and sells to APM and non-APM consumers. Based on the Government directives, excess in Gas Pool Account at the end of financial year is transferred to ONGC/Oil India Limited (OIL) In accordance with their contribution. Based on the details received from GAIL, an amount off 1,946.33 million (Previous Year Rs. 21,914.90 million) has been considered as 'Surplus from Gas Pool Account.

11.5 In terms of the decision of Government of India (Gol), the company has stared under-recoveries of Oil Marketing Companies (OMCs) on price sensitive products viz Diesel, Domestic LPG and PDS Kerosene for the year 2011-12 by extending the discount in the prices of Crude Oil, Domestic LPG and POS Kerosene based on the rates of discount communicated by Petroleum Planning and Analysis Cell (PPAC). Ministry of Petroleum and Natural Gas (MoP&NG). The impact of discount is as under:

12.1 Excise duty on sale of product has been deducted from Sales revenue and Excise duty shown above represents the difference between excise duty on opening and dosing stock of finished goods.

13. Disclosure under the Revised Accounting Standard -16 on "Employee Benefits"

14.1 Brief Description: A general description of It type Of Defined Benefit Plans is as follows:

15.1 A Earned Leave (EL) Benefit:-

Accrual - 30 day s per year

Encashment while in service - 75% of Earned Leave balance subject to a maximum of 90 days per calendar year

Encashment on retirement- maximum 300days

16.1.2 Good Health Reward (Half pay leave)

Accrual - 20 days per year Encashment white in service - Nil

Encashment in retirement - 50% of Half Pay Leave balance.

16.1.3 Gratuity:-

15 days salary for every completed year of service. Vesting period is 5 years and Die payment is resented toRs.1.DO million.

16.1.4 Post Retirement Medical Benefits:-

Upon payment of one time prescribed contribution by the employees, lull medical benefits on superannuation and on voluntary retirement subject to the completion of minimum 20 yea re of service and 5G years of age.

16.1.5 terminal Benefits:-

At the time of superannuation, employees are entitled to settle at a place of their choice and they am eligible for Transfer Travelling Allowance, Employees are gifted a sliver plaque also, depending upon their level.

The discount rate is based upon the market yield available on Government bonds at the Accounting dale with a term that matches. The salary growth rate takes account of inflation, seniority, promotional other relevant factor on long term basis. Expected rate of return on plan assets is based on market expectations, at the beginning of the year, for return over the entire life of the related obligation.

17. Disclosure under Accounting Standard-16 on "Borrowing Costs"

The Company did not incur arty borrowing cost for any qtialifying asset, No borrowing cost is capitalized during the year (previous year Nil),

18. Disclosure under Accounting Standard -17 on " Segment Reporting"'

The segment information is presented under the Notes to the Consolidated financial Statement as required under the standard.

19. Disclosure under Accounting Standard-18 on "Related Party Disclosure"

19.2 Key Management Personnel:

Whole-time Functional Directs

i) Shri Sudhir Vasudeva, Chairman and Managing Director from 03.10.2011

ii) Shri A. K. Hazarika, holding additional Charge of Chairman and Managing Director up to 03.10.3011

iii) ShriU.N. Bose

iv) Shri D K.Sarrf up to 15.09.2011

v) Shri S V Rao

vi) Shri K.S. Jamestin from 25.05.2D11

20. Disclosure under Accounting Standard -19 on "Leases"

The company has certain office / residential premises on Operating Lease which are cancellable by giving appropriate notice as per the respective agreements. During the year Rs. 799.74 million (Previous year Rs.749.63 million) had been paid towards cancellable Operating Lease.

21. Disclosure under Accounting Standard - 27 on Financial Reporting of Interest in Joint Ventures;

21.1. Jointly Controlled Assets

In respect of certain blocks., the Company's Joint Ventures (JV) with certain corporate bodies have entered into Production Sharing Contacts (PSCs) with the Gol, Details of these blocks and JVs as on 31.03-2012 are as under:

21.2.1 The financial statement of 128 (Previous Year 128) out of 139 (Previous Year 135) JV&NELP as per note no. 41.3 have been incorporated in the accounts to the extent of company's participating interest in assets, liabilities, Income, expenditure and profit/(loss) before tax on the basis of statements certified in accordance with production sharing contact and the same has been adjusted for changes as per Note No. 2.1.1.

21.2.2 In respect of balance 11 (Previous Year 7) JVs/NELP assets, liabilities, income and expenditure amounting to Rs. 1,026.31 Million (Previous year Rs.47.51 Million), Rs.1,933.61 million (Previous Year Rs. 782.66 million), Rs. 370,31 million (Previous Year Rs. 55.28 million) and Rs.2,053.41 million (Previous Year Rs. 943.31 million) respectively have been incorporated on the basis of uncertified statements prepared under the production sharing controls and the same has been adjusted for changes as per Note No. 2.1.1.

21.2.3 The company has acquired 10% Participating interest (PI) of Caim Energy India Limited (CEIL) in the Block KG DWN 98/2 on actual past cost basis. Accordingly a Heads of Agreement (HOA) was signed between ONGC & CEIL on 11.1.2012 for a provisional sum of Rs. 2,387.82 Million (USD 46.71 Million) as consideration. The effective date of transfer of PI shall be the date of Government approval, which is pending. Hence, no adjustment is made in the accounts towards the same.

21.2.4 The company has acquired the Participating Interest (PI) of British Gas Exploration & Production India Ltd (BGEPIL) In the following blocks, effective from the following dates as approved by the board of directors.

British Gas has agreed to pay a lump sum amount of USD 50 Million, towards full and final settlement of carry costs/cash calls due in all the above blocks, subject to government approval, which is pending. Hence, no adjustment for this sum is made in the accounts towards the lump sum amount due as above.

22 Disclosure under Accounting Standard -28 on ''Impairment of Assets"

22.1 The Company is engaged mainly in the business of oil and gas exploration and production where each cost centre used for depreciation (depletion) purposes is identified as independent Cash Generating Unit (CGU) for assessing the impairment in Producing Properties and fixed assets etc. on the basis of 'value in use'. The Company has rested all its CGUs for Impairment as on 31.03.2012 by applying discount rates of 20.40% (Previous Year 17.16 for Rupee transactions and Rs.13.67 % (Previous Year 12.80 %) for crude oil and value added product's revenue measured in USD as on 31.03.2012.

22.2 During the year Rs.932.83 million (Previous Year Rs.1534,73 million) is provided as impairment loss. Out of this Rs.83.30 million (Previous Year Rs.600.07 million) has been provided as additional impertinent in respect of onshore CGUs - Jodhpur and Silchar for offshore CGU- Ratna, Rs. 76.93 million (Previous Year nil) has been provided on account of increase in the estimate of abandonment liability. In addition, Rs. 154.99 million (Previous Year nil) pertaining to block CY-OS-90/1 (PY-3) has been provided as presently the field has potential only to produce for next two years and an amount of Rs. 76.57 million (Previous Year nil) has been provided in respect of Tatipaka mini Refinery, Rajahmundry. Balance amount of Rs. 540.14 million (Previous Year Rs. 934.66 million) mainly represents additional impairment charge in respect of certain onshore NELP blocks due to adjustment of cost recovery from revenue and sharing of 100% royalty.

Further, Rs. 827.73 million (Previous Year Rs. 192.53 million) has been reversed as impairment loss during the year. Out of this, an amount of Rs.791.25 million (Previous Year nil) has been reversed for offshore- Krishna Godavari CGU, Rajahmundry due to better economic performance of the asset based on the future production profile. Balance amount reversed is attributable to Jodhpur and Silchar onshore due to transfer of assets to another CGU and change in estimation of abandonment liability in respect of offshore.

23 Other Disclosures under Schedule VI to the Companies Act, 1956:

23.1 Capital Commitments:

Estimated amount of contacts regaining to be executed on capital account;-

i) In respect of Company- Rs. 114,069.33 million (Previous Year Rs.164,076.06 million).

ii) In respect of Joint Ventures- Rs. 3.581.76 million (Previous Year Rs. 145.45 million).

23.2 Other Commitments

44.2.1 Estimated amount of Minimum Work Programme (MWP) committed under various 'Production Sharing Contracts' with Government of India/ Nominated Blocks:

i) In respect or NELP blocks in which the Company has 100% participating interest - Rs. 15,052.01 million (Previous Year S2.5S&W million).

ii) In respect to Nominated Stocks million (Previous Yea rRs.374.D4 million).

iii) In respect or NELP blocks in Joint Ventures - Rs. 71,103,60 million {Previous YearRs. 92,560.05 million).

23.2.2 Board has approved the loan up to Rs. 50,000,00 million (Previous Year Nil) lo MRPL, a subsidiary of the Company, Out of whichRs. 26,000.00 million has been disbursed and Rs. 24,000.00 million ca n be availed by MRPL up to 31st December, 2012.

23.2.3 The Company has given an undertaking to Power Finance Corporation (PFC), for an additional funding up to Rs.2,234.00 million (Previous Year Rs.2.234.00 million) m respect of ONGC Tripura Power Co. Limited (OTPC) For cost overrun, if any.

The above claims I demands are at various stages of appeal and in the opinion of the Company, the same are not tenable.

23.4 Corporate Guarantees executed by the Company on behalf of its wholly owned subsidiary, ONGC Videsh United (OVLJ and ONGC Nile Ganga BV (wholly owned subsidiary of OVL):

23.4.1 Guarantees executed for financial obligations:

i) Amount of GuaranteeRs. 42,372.45 million (Previous year Rs.38,371.66 million).

ii) Amount Outstanding Rs. 30.845.81 million (Previous yearRs. 33,934.69 million).

23.4.2 Performance Guarantees executed under the contracts:

Guarantee in respect of Sakhalin Project in favour of Exxonnafigas Lid., M/s, Rosenefit-S, SMNG-S and RN-Astra towards performance of Company's obligation under Joint Operating Agreement without any financial ceiling.

23.5 Corporate Guarantees, executed by the Company on behalf of its subsidiary, HRPL:

i) Amount of Guarantee T 8,179.20 million (Previous year Rs.7,155.20 million}.

ii) Amount Outstanding Rs.4,071,20 million (Previous year Rs. 3,443.93 million),

23.6 Uncalled liability On parity paid shares is Rs.1,337.19 million (Previous Year Rs. 1,337.19 million) against Which advance paid Rs.1,233.87 million (Previous Year Rs. 1,233.87 million].

Notes;

1. Production includes internal consumption and intermediary losses.

2. Production of 1,013 MT (Previous year 203,799 MT) Crude Oil and 15,175 TM1 (Previous year 17,059 TM1) of Natural Gas is induced which is the difference between participating interest and entitlement interest in respect of CB-ON/3, CB-QN/2 and RJ-0N/6JVs.

3. Crude oil production includes condensate of 1.952 MMT (Previous Year 2.042 MMT).

Notes:

1. Loan to QVL is repayable within a notice period of minimum one year and carries no interest during the year 2010-11 and 2011-12.

2. Loan to MRPL comprises two loans: First loan carries interest @ 7% per annum and is repayable at quarterly intervals.

Second loan carries interest @ SBI Prime Lending Rate (SBAR) with a spread of minus 385 basis points. Repayment of the loan will start in 2& equal installments starting from 31.03.3014. QNGC can call these loans on notice of 90 days, MRPL can also prepay whole or part of the loan to ON GC as per its requirement.

3 The Company has not advanced any money to its employees for the purposes of investment in the securities of the Company.

24. Pursuant to the finalization of the agreement between ONGC, Claims Energy Pic, Vedanta Resources Pic and their associates during the year, the royalty paid by ONGC in respect of RJ-QN-9Q/1 Block has been treated as contact cost eligible for cost recovery. As a result, an income of Rs.31,405 47 million received from M-s Claim India Ltd. towards Royalty paid for the period August 200$ to September 2011 has been disclosed as an exceptional item.

25. The Company has a system of physical verification of Inventory, Fixed Assets and Capital Stores in a phased manner to cover all items over a period of three years. Adjustment of differences, if any. is earned out on completion of reconciliation.

26. Some balances of Trade/Other Receivables, Trade/Other Payables and Loans A Advances are subject to confirmation/ reconciliation. Adjustments if any, will be accounted for on confirmation.' reconciliation of the same, which will not have a material impact.

27. Previous year's figures have been regrouped/ reclassified, as required under Revised Schedule-Vi to the Companies Act, 1956 wherever necessary, to confirm to current year's classification.

28. figures in parenthesis as given in these Notes to Financial Statement relate to previous year.


Mar 31, 2010

1. In terms of the decision of Government of India (Gol), the Company has shared under-recoveries of Oil Marketing Companies (OMCs) for the year 2009-10 by allowing discount in the prices of Crude Oil, PDS Kerosene and domestic LPG based on provisional rates of discount communicated by Petroleum Planning and Analysis Cell, Ministry of Petroleum & Natural Gas (MoP&NG). The Company does not foresee any material impact on finalization of discount rates.

2.1 Sales revenue in respect of Crude Oil is based on the pricing formula agreed with the customers for the period from 01.04.2002 to 31.03.2004. Pending finalization of fresh Memorandum of Understanding (MOU)/Crude Oil Sale Agreement (COSA) with the customers, the same pricing formula has been provisionally adopted from 01.04.2004 onwards. However, for Crude Oil produced in Assam, benchmark price revised by MoP&NG w.e.f. 01.04.2008 has been adopted.

2.2 Sales revenue in respect of Natural Gas under Administered Price Mechanism (APM) is based on the gas prices fixed on provisional basis as per directives dated 20.06.2005 and 05.06.2006 of the Gol, MoP&NG.

2.3 Adjustments, if any, on account of Para 2.1 and 2.2 above shall be carried out on finalization of agreements/ receipt of government directives. However, the Company does not foresee any material impact on current years results.

3. MoP&NG vide letters dated 15.03.10 and 09.04.10 have directed GAIL (India) Limited (GAIL) that difference between consumer price and producer price revised vide MoP&NG letter dated 5th June, 2006 for APM gas being supplied to City Gas Distribution Projects and small consumers having allocations up to 0.05 MMSCMD should be transferred by GAIL from surplus in Gas Pool Account to the producers. Accordingly, an amount ofRs. 4,415.79 million on account of above for the period from 06.06.06 to 31.03.10 has been recognised during the current year.

4. The MOU for trading in products of Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of the Company, expired on 31st March, 2009, and accordingly no trading activity of their products was carried out during the year. Sales revenue and Purchases on account of trading of such products in the previous year was Rs. 85,098.15 million and Rs. 85,073.62 million respectively.

5.1 During the year, the Company has changed its accounting policy on abandonment cost and started providing the full eventual estimated liability towards costs relating to dismantling, abandoning and restoring of onshore well sites. Such cost of onshore well site has been capitalized to Producing Property/Development Wells in Progress /Exploratory Wells in Progress when completed and in case of dry wells it is charged to Profit & Loss account. This has resulted in increase in Producing Property by Rs. 8,353.36 million, Exploratory Wells in Progress by Rs. 166.64 million and Development Wells in Progress by Rs. 102.57 million with corresponding increase in abandonment liability by Rs. 8,622.57 million. This has also resulted in increase in Depletion cost by Rs. 403.72 million and cost of dry wells by Rs. 88.50 million with corresponding decrease in profit before tax by Rs. 492.22 million.

5.2 Further, in case of offshore wells, upto the previous year the Company was providing full eventual estimated liability towards costs relating to dismantling, abandoning and restoring of offshore wells/facilities that were forming part of producing properties. However, during the current year, the Company started providing such liability in respect of wells completed and facilities capitalized also whether they are transferred to Producing Property or not. This has resulted in increase in Development Wells in Progress by Rs. 305.52 million and corresponding increase in abandonment liability by a similar amount. This has no impact on profit before tax.

6. During the year, the Company changed its accounting policy of amortising intangible assets from Written Down Value Method @ 40% to Straight Line Method over the useful life not exceeding a period of 5 years in order to systematically amortize its intangible assets. This has resulted in decrease in Depreciation, Depletion, Amortisation and Impairment by Rs. 424.55 million, consequently activity cost decreased by Rs. 3.22 million and Profit before tax increased by Rs. 421.33 million.

7. In Ravva Joint Venture, the demand towards additional profit petroleum raised by Gol, based on the decision of the Malaysian High Court, was disputed by the Operator M/s. Cairn Energy India Limited, due to difference in interpretation of provision of Production Sharing Contract (PSC) in respect of computation of Post Tax Rate of Return (PTRR). The Company is not a party to the dispute but agreed to abide by the decision applicable to the Operator. As the dispute between the Operator and Gol was not resolved, the Company made a provision in Financial Year 2008-09 amounting to Rs. 5,771.14 million (USD 113.82 million) on account of additional profit petroleum and Rs. 2,829.86 million (USD 54.88 million) towards interest thereon totaling to Rs. 8,601.00 million (USD 168.70 million) as an abundant precaution. Gol has recovered such amount subsequently.

The appellate authority of Honorable Malaysian High Court of Kuala Lumpur, Malaysia has set aside the decision of the Malaysian High Court and the decision of arbitral tribunal in favour of Operator was restored on 15th September 2009, Gol has filed an appeal in the Federal Court of Malaysia against such restoration.

An additional interest of Rs. 65.41 million (USD 1.45 million) has been provided during the year. Pending final outcome of this appeal, the provision is retained at Rs. 7,679.21 million (USD 170.15 million) net of reversal of Rs. 987.20 million towards exchange gain during the year.

8. The Company acquired 90% Participating Interest in Exploration Block KG-DWN-98/2 from M/s Cairn Energy India Ltd. in 2004-05 for a lump sum consideration ofRs. 3,711.22 million which was capitalized under Exploratory Wells in Progress as per Accounting Policy No. 6.3. Subsequent exploratory drilling costs of wells in this block were capitalized as Exploratory Wells in Progress. Initial-in-Place-Reserves have been established in this block and a conceptual development plan is also under preparation. This being deep water block, needs more time for completion of appraisal programme. However, the Company as an abundant precaution made a provision ofRs. 6,104.80 million and Rs. 2,360.39 million in respect of above costs in 2007-08 and 2008-09 respectively. Since there is no significant change in status of this block during the current year, the expenditure amounting to Rs. 918.48 million on the wells completed upto 31 st March 2008, being more than two years old is provided for in the current year.

9. As perthe Production Sharing Contracts signed by the Company with the Gol, the Company is required to complete Minimum Work Programme (MWP) within stipulated time. In case of delay in completion of the MWP, Liquidated Damages (LD) is payable for extension of time to complete MWP. Further, in case the Company does not complete MWP or surrender the block without completing the MWP, the estimated cost of completing balance work programme is required to be paid to the Gol. LD amounting to Rs. (-)78.41 million net of reversal (Previous year Rs. 563.28 million) and cost of unfinished MWP Rs. 3,148.58 million (Previous year Rs. 1,439.51 million) paid/payable to the Gol is included in survey and wells written off expenditure in Schedule 21.

10. In respect of 16 (Previous year 16) Deepwater NELP Blocks, companys share in LD and MWP amounting to Rs. 12,037.37 million (Previous year Rs. 6,229.03 million) and Rs. 33,024.85 million (Previous year Rs. 13,075.42 million) respectively has not been provided for, since the rig moratorium proposal is under consideration of Gol as per the letter dated 18.08.2008 from Director General of Hydrocarbons (DGH). Out of the above, MWP amounting to Rs. 1,770.62 million (Previous year Nil) has already been completed during the year and balance amounting to Rs. 31,254.23 million (Previous yearRs. 13,075.42 million) is included in Capital Commitment (Note No 27.1.2).

11. The Finance (No. 2) Act, 2009 has specified the definition of "undertaking" for the purpose of claiming tax holiday under section 80-IB(9) of Income Tax Act, 1961 to be all blocks licensed under a single contract retrospectively whereas the company had earlier considered each well as an "undertaking".Since the amendment still requires clarity on various issues and also considering the advice of legal experts, the company continued to make provision for tax without considering the benefit u/s80-IB(9).

12. The Jharia CBM Block was awarded by Gol to ONGC-CIL consortium on nomination basis for exploration and exploitation of Coal Bed Methane (CBM) gas. Ministry of Coal (MoC) later awarded a coal mining block to the private company which overlapped with a part of the Companys CBM Block. It was decided by the MoC and MoP&NG that such area of exploratory wells drilled by the Company are excluded from the mining area to the private company. These well sites are permanently acquired by the Company and the titles are in the name of the Company. Pending resolution and receipt of equitable land for future exploration activities in consideration of the overlapped area, amounting toRs. 1.54 million incurred on exploratory wells is shown under Exploratory Wells in Progress.

13. In case of Jointly Controlled Assets - Panna Mukta & Tapti (ONGC Share - 40%), where Blocks auditors have opined regarding non ascertainment and adjustment of certain observations raised by auditors appointed by Director General Hydrocarbon (DGH) under Production Sharing Contract for the period 1994 to 2007 in respect of cost and profit petroleum share. Pending resolution of such issues, no adjustment has been made in the accounts of the operator. The amount of liability arising out of such observations has not been quantified and impact of the same on Companys accounts is unascertainable.

14. Pending finalization, the Company provided liability for pay revision in respect of unionized category of employees amounting to Rs. 1,910.00 million during the year (till 31.03.2010 Rs. 4,100.00 million) and is allocated to activities as per the policy of the company.

15. The Company changed the rate of depreciation on all Trunk Pipelines and Onshore Flow Lines (assets below ground) from 27.82% to 100% based on technical assessment by the management during 2005-06. The Company made a reference to the Ministry of Corporate Affairs (MCA) during 2006-07 for confirmation of the rate of depreciation. Pending confirmation by the MCA, Company continues to charge depreciation at 100% on such assets.

16. The Company has a system of physical verification of Inventory, Fixed Assets and Capital Stores in a phased manner at regular intervals. Adjustment of differences, if any, will be accounted for after examination of these differences.

17. Some balances of Debtors, Creditors and Loans & Advances are subject to confirmation/ reconciliation. Adjustments, if any, will be accounted for on receipt/confirmation of the same after examination.

18. Disclosure under the Revised Accounting Standard -15 on "Employee Benefits" 19.1 Brief Description: Ageneral description of the type of Defined Benefit Plans is as follows:

19.1.1 Earned Leave (EL) Benefit

Accrual - 30 days per year

Encashment while in service - 75% of Earned Leave balance subject to a maximum of 90 days per calendaryear

Encashment on retirement - maximum 300 days

19.1.2 Good Health Reward (Half pay leave) Accrual - 20 days per year Encashment while in service - Nil

Encashment on retirement - 50% of Half Pay Leave balance.

19.1.3 Gratuity

15 days salary for every completed year of service. Vesting period is 5 years and the payment is restricted to Rs. 1.00 million.

19.1.4 Post Retirement Medical Benefits -

Upon payment of one time prescribed contribution by the employees, full medical benefits on superannuation and on voluntary retirement subject to the completion of minimum 20 years of service and 50 years of age.

19.1.5 Terminal Benefits

At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligible for Transfer Traveling Allowance. Employees are gifted a silver plaque also, depending upon their level.

20. Disclosure under Accounting Standard -16 on "Borrowing Costs"

The Company did not incur any borrowing cost for any qualifying asset. No borrowing cost is capitalised during the year (previous year Nil).

21. Disclosure under Accounting Standard -17 on "Segment Reporting"

The segment information is presented under the notes to accounts of the Consolidated Financial Statements as required under the standard.

22. Disclosure under Accounting Standard -18 on "Related Party Disclosure"

22.1 Name of related parties and description of relationship:

22.1.1 Joint Ventures/Jointly Controlled Entities

Sl. No Name Relationship

i) Ravva Joint Venture

ii) CY-OS-90/1(PY3) Joint Venture

iii) Panna.Mukta&Tapti Joint Venture

iv) CB-OS-1 Joint Venture

v) CB-OS-2 Joint Venture

vi) GK-OSJ-3 Joint Venture

vii) RJ-ON-90/1 Joint Venture

viii) RJ-ONN-2003/1 JointVenture

ix) KK-DWN-2004/1 JointVenture

x) ONGCMangalore Petrochemicals Limited Joint Controlled Entity

xi) Petronet LNG Limited Joint Controlled Entity

xii) ONGC Teri Biotech Limited Joint Controlled Entity

xiii) Mangalore SEZ Limited Joint Controlled Entity

xiv) ONGC Petro Additions Limited Joint Controlled Entity

xv) ONGC Tripura Power Co. Limited Joint Controlled Entity

xvi)Dahej SEZ Limited Joint Controlled Entity

22.1.2 Key Management Personnel:

Whole-time Functional Directors:

i) Shri R.S. Sharma, Chairman and Managing Director

ii) Dr.A.K.Balyan

iii) ShriA.K. Hazarika

iv) Shri U. N. Bose

v) Shri D.K. Pande

vi) Shri D.K.Sarraf

vii) Shri SudhirVasudeva .

23.1.1 The financial statements of 117 (Previous year 93) out of 124 (Previous year 112) JVs/NELP as per para no. 24.3 have been incorporated in the accounts to the extent of Companys participating interest in assets, liabilities, income, expenditure and profit/(loss) before tax on the basis of statements certified in accordance with production sharing contract and the same has been adjusted for changes as per accounting policy No. 9.1 in Schedule-26.

23.1.2 In respect of balance 7 (Previous year 19) JVs/NELP assets, liabilities, income and expenditure amounting to Rs. 69.80 million (Previous yearRs. 32.93 million), Rs. 143.98 million (Previous yearRs. 921.25 million), Rs. 152.55 million (Previous yearRs. 0.06 million) and Rs. 812.85 million (Previous year Rs. 478.69 million) respectively have been incorporated on the basis of uncertified statements prepared under the production sharing contracts and the same has been adjusted for changes as per accounting policy No. 9.1 in Schedule-26.

24. In respect of Farm Out agreements, where necessary approval from Central Government has been obtained during the year, a sum ofRs. 1,196.19 million (Previous year Rs. 4,979.55 million) has been considered recoverable from the farmers towards the share of expenditure incurred from the effective date of the farm out agreement and has been credited to Miscellaneous Receipts amounting to Rs. 1,049.66 million (Previous year Rs. 4,976.82 million) in respect of earlier years and the balance current year expenditure has been credited to respective natural heads.

24.1. The Company has given an undertaking to Power Finance Corporation (PFC), for an additional funding up to Rs. 2,234.00 million in respect of ONGCTripura Power Co. Limited (OTPC)for cost overrun, if any.

25 Disclosure under Accounting Standard - 28 on "Impairment of Assets"

25.1 The Company is engaged mainly in the business of oil and gas exploration and production where each cost centre used for depreciation (depletion) purposes is identified as independent Cash Generating Unit (CGU) for assessing the impairment in Producing Properties and fixed assets etc. on the basis ofvalue in use. The Company has tested all its CGUs for impairment as on 31.03.2010 by applying discount rates of 17.31% (Previous year 16.61 %) for Rupee transactions and 13.07 % (Previous year 13.40 %) for crude oil and value added products revenue measured in USD as on 31.03.2010.

25.2 During the year X 553.45 million (Previous year Rs. 1,240.59 million) was provided as an additional impairment loss in respect of certain CGUs. Further, impairment loss to the extent of Rs. 986.17 million (Previous year Rs. 4,350.91 million) has been reversed in respect of DVP Jorhat and Ratna CGUs due to increased sale price and accretion in reserves.

26 Disclosures under Schedule VI to the Companies Act, 1956:

26.1 Capital Commitment not provided for:

26.1.1 Estimated amount of contracts remaining to be executed on capital account:-

i) In respect of Company-Rs. 184,507.29 million (Previous yearRs. 112,871.64 million).

ii) In respect of Joint Ventures - Rs. 194.47 million (Previous yearRs. 3,026.16 million).

27. Estimated amount of Minimum Work Programme (MWP) committed under various Production Sharing Contracts with Government of India/ Nominated Blocks:

i) In respect of NELP blocks in which the Company has 100% participating interest - Rs. 33,419.14 million (Previous year Rs. 21,016.72 million).

ii) In respect of Nominated Blocks Rs. 1,128.13 million (Previous year Nil).

iii) In respect of NELP blocks in Joint Ventures-Rs. 87,076.90 million (Previous yearRs. 51,675.97 million).

27.1 Contingent Liabilities:

Claims against the Company/ disputed demands not acknowledged as debt:-

(Rs. in million)

As at As at 31.03.2010 31.03.2009

I In respect of Company

i. IncomeTax 15,721.36 20,723.73

ii. Excise Duty 2,372.44 1,648.95

iii. Custom Duty 1,447.47 1,447.47

iv. Royalty 18,849.79 360.39

v. Cess 12.76 4.92

vi AP Mineral Bearing Lands (Infrastructure) Cess 1,171.84 922.92

vii. Sales Tax 20,135.52 7,271.46

viii. Octroi 66.89 66.89

ix. Specified Land Tax (Assam) 2,274.50 1,646.06

x. Claims of contractors in Arbitration / Court 21,262.90 62,796.57

xi. Others 17,317.84 5,038.78

Sub Total (A) 100,633.31 101,928.14

II In respect of Joint Ventures

i. IncomeTax 8.91 8.91

ii. Excise Duty 322.42

iii. Custom Duty 3,457.89 3,262.74

iv. Royalty - 12.39

v. Cess 10.64 10.64

vi. Sales Tax 2,959.13 2,941.15

vii. Claims of contractors in Arbitration/ Court 740.73 471.74

viii. Others 4,898.72 550.41

Sub Total (B) 12,398.44 7257.98

TOTAL(A+B) 113,031.75 109,186.12

The above claims / demands are at various stages of appeal and in the opinion of the Company are not tenable.

27.2 Bank Guarantees given by the Company:

i) Rs. 3,426.38 million (Previous year Rs. 1,542.65 million) including ^ 1,142.37 million (Previous year Rs. 1,495.11 million) for NELP Blocks where the Company has 100% participating interest.

ii) In respect of Joint Ventures - Rs. 7,082.46 million (Previous yearRs. 4,947.94 million).

iii) Out of total Bank Guarantees of ONGC an amount of Rs. 7,044.00 million (Previous year Rs. 4,544.32 million) has been provided in respect of MWP committed under various Production Sharing Contracts with Government of India and Nominated Blocks which is also included in Capital Commitments under para 27.1.2.

27.3 Corporate Guarantees executed by the Company on behalf of its wholly owned subsidiary, ONGC Videsh Limited (OVL) and ONGC Nile Ganga BV (wholly owned subsidiary of OVL):

27.4. Guarantees executed for financial obligations:

i) Amount of GuaranteeRs. 38,043.51 million (Previous yearRs. 57,062.28 million). ii) Amount Outstanding Rs. 34,932.70 million (Previous yearRs. 56,447.65 million).

27.4.1 Performance Guarantees executed underthe contracts:

Guarantee in respect of Sakhalin Project in favour of Exxonneftgas Ltd., M/s. Roseneft-S, SMNG-S and RN-Astra towards performance of Companys obligation under Joint Operating Agreement without any financial ceiling.

28. Corporate Guarantees executed by the Company on behalf of its subsidiary, MRPL:

i) Amount of GuaranteeRs. 16,246.80 million (Previous yearRs. 18,356.40 million). ii) Amount Outstanding Rs. 4,828.91 million (Previous yearRs. 3,295.49 million).

28.1 Uncalled liability on partly paid shares is Rs. 1,337.19 million (Previous Year Rs. 1,337.19 million) against which advance paid Rs. 1,233.87 million (Previous YearRs. 1,233.87 million).

29 Previous years figures have been regrouped/ reclassified, wherever necessary, to conform to current years classification.

30 Figures in parenthesis as given in these Notes to Accounts relate to previous year.

Find IFSC

Get Latest News alerts from Tamil Goodreturns

Get Latest News alerts from Tamil Goodreturns

We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more