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Oil & Natural Gas Corpn Ltd - Directors' Report

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Code: ONGC
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Dear Shareholders,

It gives me great pleasure to present, on behalf of the Board of Directors of your Company, the 22nd Annual Report on the business and operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its Audited Statements of Accounts for the year ended March 31, 2015, together with the Auditors` Report and Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.

Your Company along with its group companies has registered yet another year of sustained performance. Exploration and production of crude oil and gas, our core business, set various milestones during the year. Besides that performance in the areas where ONGC has engaged substantially also witnessed success with positive contributions.

ONGC has steadfastly focussed on organic growth through its exploratory endeavours and build a healthy reserve profile for the future. During FY`15, the Company registered Reserve Replacement Ratio (RRR) of 1.38 (with 2P reserves) with 22 oil and gas discoveries in various basins of the country. This has been possible because of extensive exploration in known basins as well as frontier plays. Domestic crude oil and natural gas production of ONGC along with its share in the domestic joint ventures (PSC-JVs) during FY`15 has been 49.46 million metric tonnes of oil and oil equivalent gas (MMtoe) which is about 2.7% lower than FY`14 production (50.84 MMtoe). On standalone basis crude oil production from ONGC operated fields has been 22.26 million metric tonnes (MMT) against production of 22.25 MMT during FY`14. This goes to the credit of your Company that production decline could be arrested due to prudent reservoir management practices adopted in the matured fields and bringing new fields on stream.

Major Highlights: FY`2014-15

Salient highlights with respect to performance of your Company during FY`2014-15 are as below:

• 22 oil & gas discoveries in domestic acreages with accretion of 61.05 MMToe of 2P reserves.

• RRR (2P) for FY`2014-15 was 1.38; in excess of One consecutively for 9 years.

• Despite natural decline in matured fields, crude oil production from domestic fields maintained at 25.94 MMT Major upside in production was registered from the Western offshore fields with incremental oil gain of 4.3%.

• New and marginal fields contributed about 12.3% of crude oil (2.74 MMT out of 22.26 MMT from domestic operated fields) and 15.2% of natural gas production (3.35 BCM out of 22.02 BCM from domestic operated fields). 34.5% of crude oil production was contributed by the IOR/EOR and redevelopment schemes.

• The gross revenue from operations during FY`2014-15 has been Rs830,935 million; 1.3% lower than FY`14.

• ^362,996 million contribution towards sharing the under-recoveries of OMCs during FY`2014-15 impacting ONGC`s Profit Before Tax (PBT) by Rs309,596 million and Profit After Tax (PAT) by Rs204,370 million. Despite this Net Profit has been Rs177,330 million; 19.7% lower than the profit during previous year FY`2013-14.

• Hon`ble Prime Minister Mr. Narendra Modi dedicated the 2nd unit of OTPC Power Plant at Palatana, Tripura, to the Nation on December 1, 2014. The 726.6 MW gas-based power plant of ONGC Tripura Power Company is the biggest project in North East part of India in terms of investment in E&P, gas and power transmission. It is also credited as the largest Clean Development Mechanism (CDM) projects of the world.

• Your Company decided to invest Rs249,000 million in five major projects in estern Offshore for sustaining crude oil and gas production.

• HRD process platform of ONGC was installed successfully on January 15, 2015 using the state-of-the-art Float-Over technology. This is the first such endeavour in the history of ONGC, where installation of an add-on platform with the existing operational platform has been completed successfully.

• The operationalization of FPSO at Cluster-7 project on February 26, 2015 resulted in doubling the crude oil production from around 7,500 barrels per day (bpd) to around 15,000 bpd.

• ONGC Videsh Ltd. (100% subsidiary of your Company) registered 8.87 Mmtoe of O+OEG production during FY`2014-15 against 8.36 Mmtoe during FY`2013-14. Production upside primarily came from BC-10 field in Brazil, blocks in Myanmar and the Sakhalin project in Russia.

• Despite higher production, ONGC Videsh`s Revenue during FY`2014-15 has been down by 14% due to lower oil prices globally. PAT has been down by 57% due to lower oil prices, exchange losses, higher financing cost and higher depletion charges.

• During the year ONGC Videsh made a maiden venture in New Zealand with exploratory acreages.

• MRPL commissioned all the units under Phase-III refinery expansion project during the year and registered the highest-ever thru-put of 14.65 MMT

• Turnover of MRPL for the year was down by 17% due to lower products` prices and it registered a net loss of Rs11,700 million against Net profit of Rs6,010 million in FY`2013-14 due to exchange and inventory losses.

Besides excellence in core operational activities your Company positioned itself as a valuable corporate citizen through its mapped defined actions towards inclusive growth of the Society/Community and green initiatives as per the commitment and our performance was globally recognized. ONGC was ranked at 183rd position among 2000 top global companies in Forbes Global 2000 list published in May`2015. In the global oil and gas operation industry, ONGC has moved up three places to occupy the 18th position. ONGC has been ranked as the Top energy company in India, in the coveted Platt`s Top 250 Global Energy Company Rankings 2014. ONGC improved upon its global ranking by a notch to be positioned 21st among the global energy majors. ONGC has also maintained its position as the 3rd largest Exploration and Production (E&P) company in the world. In the latest Newsweek Green Rankings, the world`s most recognized assessment of corporate environmental performance, ONGC has made a quantum leap to be ranked 217 globally (it was positioned 386th in 2012 Green rankings). The company now stands third amongst only seven Indian companies named in the prestigious list.

Performance 2014-15

Exploration

During the year 2014-15, ONGC has made 22 Oil and gas discoveries in domestic acreages (operated by ONGC). Out of 22, 10 discoveries are in Offshore and 12 in Onshore; 10 discoveries were made in the new prospects whereas 12 were new pool discoveries. 7 discoveries were made in NELP blocks and 15 in nomination blocks.

Two discoveries (Rudrasagar-184 & Gandhar-699) during

2014-15 in nomination blocks have already been put on production and efforts are on for bringing the other discoveries on production as early as possible. 7 discoveries in NELP blocks (5 Onland, 2 Offshore) are governed by the PSC guidelines and appraisal/ development activities will be taken up keeping in view the timelines of the respective blocks. In addition to these discoveries, exploratory wells conclusively tested and proved to be hydrocarbon bearing will help in field growth of existing fields. Details of the discoveries are as under:

Sr. Well No. Basin/ Sub-basin Type of Hydro-carbon Type of discovery
1 Tukbai-3A (TK-3A) AAFB-Cachar Gas New Prospect
2 Rupal-2* Oil New Prospect
3 Vadatal-10 (VDAH)* Cambay Oil New Prospect
4 Vadatal-11* Oil New Prospect
5 Thirunagari / Thirunagari-1* Cauvery(On) Gas New Prospect
6 South Pasarlapudi-1 KG(On) Oil & Gas New Prospect
7 YS-9-1 (Shift) KG(SW) Gas New Prospect
8 GD-11 / GD-11-1 KG(DW) Gas New Prospect
9 GKS092NAA-1* Kutch Gas New Prospect
10 GKS091NDA-1* Offshore Gas New Prospect
11 C-1-7 Mumbai Oil & Gas New Pool
12 C-1-8 Offshore Oil & Gas New Pool
13 Rudrasagar / Rudrasagar-184 Oil New Pool
14 Khoraghat-35 A&AA (Assam) Gas & Cond. New Pool
15 Khoraghat-37 Gas New Pool
16 Gandhar-699 Cambay Oil New Pool
17 Madanam / Madanam-6* Cauvery Onshore Oil & Gas New Pool
18 Damoh / Damoh-4 Vindhyan Gas New Pool
19 GS-29-10 (AJ) KG (SW) Oil & Gas New Pool
20 G-1-NE-1 KG (SW) Oil & Gas New Pool
21 G-1-NE-2 KG (SW) Gas & Cond. New Pool
22 WO-5 / WO-5-11 Mumbai Offshore Oil & Gas New Pool

* In NELP blocks

Details of the discoveries in NELP blocks (since inception till 01.04.2015)

Out of the 114 NELP blocks awarded to/ acquired by ONGC as operator, currently ONGC is operating in 49 blocks, balance 65 blocks have been relinquished. Exploration/ appraisal programme is underway in all the active blocks. A total of 47 discoveries as on date (16 in deep-water, 13 in shallow water and 18 in onland) have been made by ONGC in 22 of these NELP blocks (6 deep-water, 6 shallow water & 10 onland). Commencement of production from these discoveries is governed by stipulations laid down in the respective PSCs and is to be taken up after successful completion of appraisal programme followed by submission of DOC and approval of Field Development

Plan. ONGC has put three NELP Blocks on Commercial Production:

a. NELP Block CB-ONN-2004/1 (Karannagar)

Onshore NELP Block CB-ONN-2004/1 (Karannagar) located in Ahmedabad was put on commercial production on 24.03.2015 within 24 hours of getting the Mining Lease. This NELP block was awarded to consortium of ONGC and GSPC in VI round of NELP bidding in 2007. ONGC is the operator of block with 60% participatory interest.

b. NELP block CB-ONN-2004/2 (Vadatal)

Vadatal-1 in the NELP block CB-ONN-2004/2 (Vadatal) was put on production on March 26, 2015. The NELP block CB-ONN-2004/2 was awarded to a consortium of ONGC and GSPC in VI round of NELP bidding in 2007. ONGC is the operator of the block (PI: 55%) with partner GSPC (PI: 45 %.).

c. NELP block CB-ONN-2002/1 (West Patan)

West Patan #3 well in the NELP block CB-ONN-2002/1 (est Patan) was put on commercial production on 31.03.15 on the same day of getting the Mining Lease from the Govt. of Gujarat. The block CB-ONN-2002/1, covering 135 sq. km and falls in the northern part of the Cambay Basin and is located west of Patan town in North Gujarat.

Reserve accretion & Reserve Replacement Ratio (RRR)

Continuing exploration in challenging and frontier areas, your company has accreted 215.65 million metric tonnes of oil equivalent (MMtoe) of In-place volume of hydrocarbon in the domestic basins (operated by ONGC). As on 01.04.2015, in-place hydrocarbon volume of ONGC as a group stands at 9,283.84 MMtoe; up 4.2% from FY`2013-14 figure of 8,912.81 MMtoe. The ultimate reserves (3P) accretion in domestic area (ONGC operated) during FY`2014-15 has been 70.98 MMtoe and 2P reserve accretion has been 61.06 MMtoe. Total reserve accretion during 2014-15 in domestic basins including ONGC`s share in PSC JVs stands at 60.03 MMtoe. Voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69) have been made by your Company.

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

Ultimate Reserve (2P) accretion O+OEG

(in MMToe)
Year Domestic Assets ONGC`s share in Domestic JVs Total Domestic Reserve ONGC VIDESH`s Share in Foreign Asset Total

(5) = (3) + (4)

(1) (2) (3) = (1) + (2) (4)
2010-11 63.09 0.29 63.38 54.2 117.58
2011-12 58.67 1.43 60.1 -0.06 60.04
2012-13 67.59 4.23 71.82 10.09 81.91
2013-14 56.26 4.29 60.55 213.24 273.79
2014-15 61.06 -1.03 60.03 20.03 80.06

Note: Reserve accretion reported in terms of2P reserves

Statement of Reserve Recognition Accounting (RRA)

Reserve Recognition Accounting is a voluntary disclosure towards recognizing income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization engaged in exploration and production of hydrocarbons with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee of the Company.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information:

a) Proved Oil and Gas reserve quantities

b) Capitalized costs relating to Oil and Gas producing activities

c) Cost incurred for property acquisition, exploration and development activities

d) Results of operations for Oil and Gas producing activities

e) A standardized measure of discounted future net cash flows relating to proved Oil and Gas reserve quantities

Your Company has disclosed information in respect of (a) to (d) above in the Annual Financial Statements.

Your Company has also made voluntary disclosure on standardized measure of discounted future net cash flows relating to proved oil and gas reserve at Annexure-A` to this report as statement of Reserve Recognition Accounting (RRA).

Oil & Gas production

During FY `15, your Company retained its position as the largest producer of oil and gas in the country and contributed 69 per cent of oil and 70 per cent of natural gas production of the country from its domestic operations. On standalone basis, in FY`15 ONGC`s domestic crude oil production registered 22.26 MMt against 22.25 MMt in FY`14, reversing the production decline in domestic fields. The major contribution came from estern Offshore, which produced 4.3 per cent more than the production during last year

Details of crude oil and natural gas production from domestic basins along with that of Value Added Products (VAP) are as below:

Unit

Production Qty

Sales Qty

Value in million)

FY`15 FY`14 FY`15 FY`14 FY`15 FY`14
Direct
Crude Oil (MMT) 25.94 25.99 24.11 23.61 536,638 525,734
Natural Gas (BCM) 23.52 24.85 17.98 19.63 187,381 183,291
Ethane/Propane 000 MT 339 430 337 428 10,064 14,837
LPG 000 MT 1,095 1,067 1,090 1,073 34,380 30,145
Naphtha 000 MT 1,155 1,358 1,124 1,379 50,835 75,743
SKO 000 MT 72 84 74 85 2,771 2,779
Others 1,359 2,124
Sub Total 823,428 834,653
Trading
Motor Spirit 000 KL 0.53 0.54 38 41
HSD 000 KL 0.39 0.05 22 3
Sub Total 60 44
Total 823,488 834,697

Oil & Gas production of ONGC Group, including PSC-JVs and from overseas Assets for FY`15 has been 58.33 MMtoe (against 59.21 MMtoe during FY`14).

Out of the total production of 31.47 MMT of crude oil, 70.8 per cent production came from ONGC operated domestic fields, 17.5 per cent from the overseas assets and balance 11.7 per cent from domestic joint ventures. As far as natural gas production is concerned, majority of production (82 per cent) came from ONGC operated domestic fields, 12.4 per cent from overseas assets and 5.6 per cent from domestic joint ventures.

Production from overseas assets

ONGC Videsh, has thirteen (13) producing assets in ten countries - Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2), Syria (1), Vietnam (1), Mayanmar (2), Russia (2) and Azerbaijan (1).

Total production from these overseas assets during FY`15 has been 8.87 MMtoe of O+OEG (Crude oil: 5.53 MMT & Gas: 3.34 BCM).

Ajerbaijan has contributed 12% as compared to around 0.1% last year. Resumption of operations in South Sudan & Sudan has also contributed to this year`s increased volume contributing 13.2% this year as compared to 8.2% last year. Russia & Vietnam continued to be the biggest contributor to overseas production volume with 29.4% and 23% respectively.

Unconventional sources of energy

ONGC plans to continue its endeavor for exploration and development of Unconventional & other resources like Shale Gas, CBM, etc. ONGC has prioritized suitable actions for exploration and exploitation of Non-Conventional and Alternate Sources of energy which has the potential to change the energy business landscape in the country as it is happening in the other parts of the world. The initiatives by ONGC in these areas are summarized below;

a. Shale Gas

ONGC has the distinction of establishing the first flow of shale gas in the country on 25th January, 2011 from RNSG#1 well (R&D Pilot Project, Durgapur).

ONGC has chalked out plan of drilling of pilot shale gas and oil wells in most of the identified blocks in Cambay,Krishna-Godavari,Cauvery and Assam &Assam-Arakan Basins. During October, 2013

Government of India brought out shale gas policy which allows National Oil Companies viz. ONGC and OIL to initiate shale gas and oil assessment activities in their allocated nomination blocks in phased manner. As per the new Policy, 50 nomination PML blocks have been identified in four Basins - 28 PMLs in Cambay, 3 PMLs in A&AA, 10 PMLs in Krishna-Godavari and 9 PMLs in Cauvery basins for Shale Gas assessment within three year period of Phase-I. A total of 57 pilot/assessment wells are to be drilled by April, 2017

During 2014-15, ONGC has drilled five exploratory wells for shale gas exploration (4 dual and 1 exclusive) in Cambay, Cauvery, Krishna-Godavari and Assam-Arakan Basins and samples have been collected for assessment of Shale Gas potential. Most of the studies in wells drilled last year have been completed and the integration/ assessment exercise is in progress. Based on the review of data collected in wells JMSGA and GNSGA, prospective intervals have been identified in Cambay Shale which are planned to be hydro-fractured shortly. Presently, 2 Shale gas wells (GNSGB & GNSGC, Cambay Basin) and 1conventional well with dual objective (WPGAA,KG Basin) are under drilling.

b. Coal Bed Methane (CBM)

Of the total thirty-three CBM Blocks awarded by GOI to various operators through four rounds of bidding and nomination, ONGC was awarded nine CBM blocks. Due to poor CBM potential, concluded on the basis of the data generated in the exploratory activities, five Blocks viz. Satpura (Madhya Pradesh), Wardha (Maharashtra), Barmer-Sanchor (Rajasthan), North Karanpura (est) and South Karanpura (Jharkhand) have been relinquished.

Currently, ONGC is operating four CBM Blocks i.e., Jharia, Bokaro, North Karanpura (Jharkhand) and Raniganj (West Bengal),FDP of which has been approved. Nearly 400 wells and 2000 hydro-fracturing jobs have to be carried out in the coming 4-5 years as per timelines of the CBM Contract. In view of the mammoth and time bound task, ONGC is in the process of farming out its participative interest (PI) to experienced CBM players through formation of JV Farm out Agreement (FoA) for North Karanpura Block has been signed on October 7, 2014 with M/s Prabha Energy Pvt. Ltd (PEPL) with assignment of 25% PI from ONGC`s share. Documents have been submitted to DGH for Government`s approval of PI assignment. Joint Venture for farming out in Bokaro Block is being negotiated. Further, offers for formation of Joint Venture for Jharia and Raniganj blocks are being invited.

Sale of incidentally CBM gas from existing wells at Parbatpur of Jharia block is continuing and as on April 1, 2015 cumulative gas supply has been

13,875,102 SCM.

c. Underground Coal Gasification (UCG)

ONGC with GIPCL selected Vastan Mine block site in Gujarat as an R&D project to establish UCG technology. All the ground work and inputs for construction and implementation of UCG Pilot Project at Vastan, has been completed and further development is awaiting award of Mining Lease by Ministry of Coal (MoC), GoI.

Further, a number of sites have been jointly identified by ONGC & Neyveli Lignite Corporation Limited (NLC) for studying their suitability to UCG. These are Tadkeshwar in Gujarat and Hodu-Sindhari & East Kurla in Rajasthan. One more site was jointly identified by ONGC & GMDC viz. Surkha in Bhavnagar district, Gujarat. The data of all the fields have already been analyzed for evaluating the suitability of these sites for UCG. All the sites have been found suitable for UCG exploration.

Oil & Gas Projects

In recent years your Company took up 15 projects for development of 39 new/marginal oil and gas fields with an investment of ^386,024 million. Out of these 15 projects, 11 projects have already been completed. Production from development of G-1 & GS-15 fields has already commenced. Rest three projects, Development of WO-16 Cluster, C-26 Cluster and B-127 Cluster, are under implementation and are expected to be completed in FY`17. Further, Improved Oil Recovery (IOR), Enhanced Oil Recovery (EOR) and redevelopment projects were also taken up by your Company for prudent reservoir management and arresting decline from matured fields. 21 of 26 such projects have so far been completed. Two projects i.e., "Heera & South Heera Redevelopment Project" and "Development of Western Periphery of Mumbai High South" project is likely to be completed by Mid FY`16 and the remaining three projects i.e., "Redevelopment of Mumbai High North Phase-III", "Redevelopment of Mumbai High South Phase-III" and "Additional development of Vasai East" will be completed by the year 2017-18.

Details about the projects completed during the year 2014-15, new projects taken up are given as below:

Oil and Gas projects completed during FY`2014-15

The following eight major field development and other projects were completed during the year 2014-15:

Sl. No Name of Projects Completion/ Commencement of production Total Investment Rs million Envisaged oil & gas gain
1 Development of SB-14 April, 2014 4,104 0.197 MMm3 of condensate & 1.641 BCM of gas in its project life of 12 years
2 MHN Redevelopment Phase-II June, 2014 71,334 17.354 MMT of oil and 2.987 of gas BCM respectively by 2029-30
3 MHS Redevelopment Phase-II June, 2014 88,134 18.31 MMT of oil and 2.70 BCM of gas by 2029-2030
4 Development of B-46 Cluster Fields June, 2014 14,570 5.273 BCM of gas & 1.68 MMm3 of condensate in its project life of 12 years
5 Fire Water Network at Uran July, 2014 1,717 For safe operations
6 Development of C Series fields (C-24 Cluster) July, 2014 36,904 10.771 BCM of gas and 2.166 MMT of condensate by 2024-25
7 Development of B-22 Cluster fields July, 2014 29,208 2.46 MMT of oil, 1.13 MMT of condensate and 6.56 BCM of gas by

2019-2020

8 Additional Development of NBP (D-1) field July, 2014 23,316 8.296 MMT of oil by 2024-25

Projects brought to production in FY`2014-15

Production commenced from following six projects during the year

Sl. No Fields Project Date of Commencement of production
1. SB-14 Development of SB-14 field 7th April, 2014
2. BHE Development of BHE & BH-35 fields 4th April, 2014
3. WO-24 Development of Cluster-7 fields 10th June, 2014
4. B-193 Development of B -193 Cluster fields 26th May, 2015
5. B-178 Development of B -193 Cluster fields 25th May, 2015
6. B-179 Development of B -193 Cluster fields 24th May, 2015

Oil and Gas projects approved by ONGC Board during FY`2014-15

Sl. No Name of Projects Approved Cost (Rsmillion) Incremental Oil & Gas gain
1 MHN Redevelopment Phase-III 58,133 6.997 MMT of Oil and 5.253 BCM of gas by the year 2029-30
2 MHS Redevelopment Phase-III 60,688 7.547 MMT of oil and 3.864 BCM of gas by the year 2029-30
3 Additional Development of Vasai 24,768 1.827 MMT of Oil and 1.971 BCM of gas by the year 2029-30
4 Integrated Development of Daman 60,861 5.01 MMm3 of condensate and 27.67 BCM of gas by the year 2024-25
5 Enhanced Recovery from Bassein field through Integrated Development of Mukta, Bassein & Panna 46,199 19.36 BCM of gas 1.97 Mm3 of condensational, 0.183 mmt of oil till 2027-28
6 Pipeline replacement Project-IV 28,999
Total 279,648

1. Financial Results

Despite volatile markets and sharing under-recoveries of Rs 362,996 million during the year 2014-15, your Company has earned a Profit After Tax (PAT) of Rs177,330 million, down 19.74% over FY 2013-14 (Rs220,948 million). During 2014-15, your Company registered Gross revenue of Rs830,935 million, down 1.32 % over 2013-14 (Rs842,028 million).

Highlights
• Gross Revenue Rs 830,935 million
• Profit After Tax Rs 177,330 million
• Contribution to Exchequer Rs 421,074 million
• Return on Capital Employed 33.2 %
• Debt-Equity Ratio 0.0096 :1
• Earnings Per Share (Rs) 20.73
• Book Value Per Share (Rs) 168

(Rs in million)

Particulars 2014-15 2013-14
Revenue from operations 830,935 842,028
Other Income 53,666 67,132
Total Revenues 884,601 909,160
Profit Before Interest, Depreciation & Tax (PBIDT) 380,163 433,582
Profit Before Tax (PBT) 265,552 324,319
Profit After Tax (PAT) 177,330 220,948
APPROPRIATION
Interim Dividend 77,000 79,138
Proposed Final Dividend 4,278 2,139
Tax on Dividend 16,256 13,807
Transfer to General Reserve 79,796 125,864
TOTAL 177,330 220,948

The decrease in Profit during FY 14 -15 as compared to FY 13-14 is mainly due to higher exploratory wells written off and reduction in quantity sold as well as lower price realization of value added products. Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014, a separate statement containing the salient features of the financial statement of its subsidiaries, associate company and joint venture in Form AOC-1 forms part of the Financial Statements.

2. Dividend

Your Company paid interim dividend of Rs 9.00 per share (180 per cent) in two phases(Rs5.00 and Rs4.00). The Board of Directors has recommended a final dividend of Rs 0.50 per share(10 per cent) making the aggregate dividend at Rs9.50 per share (190 per cent) for FY 14-15 i.e. same as compared to dividend for the year 2013-14. The total dividend will be Rs81,278 million, besides Rs16,256 million as tax on dividend amounting to 55% of PAT.

3. Management Discussion and Analysis Report

As per the terms of Clause 49VIIID of the Listing Agreement with the Stock Exchanges, the Management Discussion and Analysis Report (MDAR) has been included and forms part of the Annual Report of the Company.

4. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards and Successful Efforts Method of accounting as per the Revised Guidance Note on Accounting for Oil & Gas Producing Activities issued by The Institute of Chartered

Accountants of India (ICAI) effective from 01.04.2013 and provisions of the Companies Act, 2013. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared under the Schedule III format of the Companies Act, 2013.

Loans, Guarantees or Investments

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

Related Party Transaction

Particulars of contracts or arrangements with related parties referred to in Section 188 of the Companies Act, 2013 in the form AOC-2 form part of Board`s Report and placed at Annexure-B.

5. Subsidiaries

I ONGC Videsh Limited (ONGC Videsh)

ONGC Videsh, the wholly-owned subsidiary of your Company for E&P activities outside India, has participation in 36 projects in 17 countries viz., Azerbaijan, Bangladesh, Brazil, Colombia, Iran, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, New Zealand, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam. Out of 36 projects, 13 are producing, 4 are discovered/ under development, 17 are exploratory and remaining 2 are pipeline projects.

ONGC Videsh is currently producing about 167 thousand barrels of oil and oil equivalent gas per day and has total oil and gas (2P) reserves of about 612 MMtoe as on 31st March 2015. During FY`15, there is an increase in oil and gas production by 6.19% (Oil 0.86% and Gas 16.37%) as compared to previous fiscal year. The incremental production is primarily due to better management of fields and addition in the portfolio.

ONGC Videsh`s share in production of oil and oil equivalent gas (O+OEG), together with its wholly-owned subsidiaries, ONGC Nile Ganga B.V, ONGC Amazon Alaknanda Limited, Imperial Energy Limited and Carabobo One AB, was 8.874 MMtoe during FY`15 as compared to 8.357 MMtoe during FY` 14. The oil production increased from 5.486 MMT during FY`14 to 5.533 MMT during FY`15 (0.86% higher) primarily due to increased share of additional 12% PI in Block BC-10, Brazil.

During FY`15, the company has earned profit after tax of Rs 19,042 million, a decrease of 57% as compared to FY`14. Despite higher production during FY`15, the decrease in profit is mainly due tolower oil prices, higher financing cost including exchange loss, higher depletion charge, and impairment provision in one of the assets.

(A) Significant Acquisitions, Alliances and Operations highlights of ONGC Videshduring FY`15 are as follows:

a) Block PEP 57090, New Zealand: ONGC Videsh was awarded an exploration permit PEP 57090 in the Taranaki offshore basin by Government of New Zealand on 9th December, 2014. ONGC Videsh has now started operations in Pacific Region.

b) During FY`15, ONGC Videsh has signed the following MoUs:

(i) MoU with ROSNEFT was executed on 24th May, 2014 for cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbon production in Russia`s offshore Arctic.

(ii) MoU with TPAO (the Turkish Petroleum Company) was executed on 18th June 2014 for working together for E&P activities in Turkey, joint participation in bidding for opportunities including exploration bid rounds in third countries and pursuit of hydrocarbon opportunities related research and development activities.

(iii) MoU with YPF S.A. Argentina was executed on 1st September, 2014 for working to explore possibility of cooperation in the areas of Unconventional and Conventional Hydrocarbon Assets in Argentina, E&P activities in India and in third countries, research & development activities and human resources development.

(iv) LoI with Petro Vietnam was executed on 15th September, 2014, for expansion of exploration activities by ONGC Videsh in Vietnam by considering participation in 2-3 additional blocks subject to technical and commercial viability and requisite approvals.

(v) MoU with Pemex-Exploracion Y Produccion

(PEP) was executed on 25th September, 2014, for cooperation in the hydrocarbon sector in the fields of technology, human resources, research & development.

(vi) MoU with Mubadala Petroleum, UAE was

executed on 29th September, 201 4, for collaboration in potential upstream oil & gas exploration, development and producing projects and LNG opportunities.

(vii) HoA with PVEP was executed on 28th October, 2014, for mutual cooperation and participation in Blocks 102/10 & 106/10 of PVEP and Block 128 of ONGC Videsh in offshore Vietnam subject to due diligence and negotiations on the terms of participation.

(c) Operations

i. In Sakhalin-1 Project, the topside of "Berkut"-world`s biggest offshore platform in Arkutun-Dagi field, was successfully floated over from South Korea to Russia and installed on 20th June, 2014 with production commencing from 5th January, 2015.

ii. Gas Export Pipeline Remediation project in Block BC-10, Brazil was successfully commissioned on 1st November, 2014 leading to gas export about 0.27 MMSCMD.

iii. In A-1/A3 Project, Myanmar, plateau gas production rate of 14.2 MMSCMD was achieved on 2nd December, 2014.

iv. Oil production from Petro Carabobo, Venezuela, crossed 16,000 BOPD on 16th March, 2015 with average oil production of 9,775 BOPD during FY`15 as compared to 3,293 BOPD during FY`14.

v. First crude oil cargo of 1.2 million barrel of Petro Carabobowas lifted by RIL on 25th May, 2014 from Venezuela.

vi. The ongoing geo-political situation in Syria including EU sanctions and the resulting restrictions on contractors continue adversely affecting Syrian operations since December, 2011.

vii. The operations in South Sudan projects are temporarily under shutdown after internal conflicts and adverse security situation in the country since 22nd December, 2013. The operations in South Sudan shall resume once security situation improves.

Direct Subsidiaries of ONGC Videsh

i. ONGC Nile Ganga B.V. (ONGBV)

ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25 per cent

Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.705 MMT during 2014-15. ONGBV also holds 25 per cent PI in Greater Pioneer Operating Company (GPOC), South Sudan. Due to adverse geo-political conditions, ONGC Videsh could not produce in GPOC, South Sudan during FY`15.

ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due to force majeure condition in Syria, there was no production in AFPC project during FY`15. ONGBV holds 40 per cent PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil production of about 0.645 MMT during FY` 15. ONGBV holds 27 per cent PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. with its share of oil and gas production of about 0.854 MMtoe during FY` 15. It also holds 25 percent PI in Block BM-SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltd. ONGBV also holds 8.347 per cent PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.

ii. ONGC Narmada Limited (ONL)

ONL has been retained for acquisition of future E&P projects in Nigeria.

iii ONGC Amazon Alaknanda Limited (OAAL)

OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY` 15, ONGC Videsh`s share of oil production in MECL was about 0.626 MMT.

iv. Imperial Energy Limited

Imperial Energy Limited, a wholly-owned subsidiary of ONGC Videsh incorporated in Cyprus, has its main activities in the Tomsk region of estern Siberia, Russia. During FY` 15, Imperial Energy`s oil and gas production was about 0.289 MMToe.

v. Carabobo One AB

Carabobo One AB, a subsidiary of ONGC Videsh incorporated in Sweden, indirectly holds 11 per cent PI in Carabobo-1 Project, Venezuela. During FY` 15, Carabobo`s oil production was about 0.066 MMT.

vi. ONGC (BTC) Limited :

ONGC (BTC) Limited holding 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline ("BTC") owns and operates 1,768 km oil pipeline running through

Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude from the ACG fields from Azerbaijan to the Mediterranean Sea.

vii. Beas Rovuma Energy Mozambique Limited:

Beas Rovuma Energy Mozambique Limited was incorporated in British Vergin Islands (BVI) and holding 6% PI in Rovuma Area 1, Mozambique.

viii. ONGC Videsh Atlantic Inc.:

ONGC Videsh Atlantic Inc. is incorporated in Texas, United States of America, to work in co-ordination with Anadarko (Operator of Rovuma Area 1, Mozambique) and to establish G&G centre etc.

ix. ONGC Videsh Rovuma Limited:

ONGC Videsh Rovuma Limited was incorporated in Mauritius for structuring of 10% PI in ONGC Videsh`s Rovuma Area 1, Mozambique.

II Mangalore Refiner y and Petrochemicals Limited

(MRPL)

Your Company continues to hold 71.62 per cent equity stake in MRPL, a Schedule A Mini Ratna, which is a single location 15 MMTPA Refinery on the West coast.

Performance Highlights FY 2014-15

MRPL achieved the highest-ever thru`put of 14.65 MMT in FY 14-15 against 14.55 MMT in FY 13-14 .

MRPL exported 4.98 MMT of products against 6.72 MMT in the previous year. The exports were low compared to the previous year due to the commissioning of Delayed Coker Unit and increased domestic sale of Kerosene and HSD .

Crude sourcing (Receipts): 14.35 MMT; Iran (34.83 per cent), Saudi Arabia (19.67 per cent), ADNOC (12.12 per cent), Kuwait (15.12 per cent), Basrah Light (0.8 percent) Mumbai High (5.03 per cent), Ravva and KG basin (3.50 per cent) Sonangol (3.81 percent) Spot (5.12 per cent).

Marketing and Retail Operations

MRPL continues to expand its market spread in the direct sales segment of petroleum products in the state of Karnataka and its adjoining states. MRPL has significant market share and direct customer relations for products such as Bitumen, Fuel Oil, Sulphur, Diesel, Petcoke and Mixed Xylene in its refinery zone. The total sales volume of direct marketing products during the FY 2014-15 was 820 TMT with a sales value of Rs 22,970 million compared to volume of 507 TMT and sales value of Rs 25,890 million in the previous FY 2013-14.

Phase III - Brownfield expansion Project

All the units of MRPLs Phase III up-gradation and expansion project have been commissioned . The Polypropylene unit was inaugurated by Hon`ble Minister (I/C) P&NG on

05-04-2015.

Acquisition of controlling stake in OMPL

MRPL has increased its stake in OMPL to 51 % by subscribing to the right issue made by OMPL Subsequently OMPL has become subsidiary of MRPL and a Government company under Companies Act, 2013.

6. Annual Report of Subsidiaries and Consolidated Financial Statement

In accordance with Section 134 of the Companies Act, 2013 and the Accounting Standard (AS)-21 on "Consolidated Financial Statements" read with AS-23 on "Accounting for Investments in Associates" and AS-27 on "Financial Reporting of Interests in Joint Ventures", audited Consolidated Financial Statements for the year ended 31st March, 2015 of the Company and its subsidiaries form part of the Annual Report.

Full Annual Report of subsidiaries of ONGC will be made available to any shareholder, if he/she desires, which is also available on Company`s website. Further, Annual Reports of MRPL and ONGC Videsh are also available on website www.mrpl.co.in and www.ongcvidesh.com respectively.

7. Joint Ventures/ Associates

i. ONGC Petro-additions Limited (OPaL)

ONGC Petro-additions Limited (OPaL), has been promoted by your company asa Joint Venture (JV) Company, with envisaged equity stake of 26% along with GAIL (15.5%). GSPC also has a token presence in OPaL. The balance equity of 58.5% is to be tied up with Strategic Partners/ FIs / IPO.

OPaL is a mega petrochemical project at Dahej SEZ for utilizing in-house production of C2-C3 and Naphtha from various units of ONGC.

Present status

• Overall Cumulative progress is 95 %.

• Total cumulative expenditure as on 31st March 2015 is Rs 213,110 million. Approved project cost is Rs270,110 million.

• Debt closure has been attained for approved project cost of Rs 270,110 million with the execution of Rupee Term Loan agreement.

• Phase-wise commissioning of the complex has commenced with stabilized operations envisaged in Q3

2015-16.

ii. ONGC Tripura Power Company Ltd (OTPC)

Your Company has promoted OTPC with an envisaged stake of 50% along with Govt. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL-an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with India Infrastructure Fund-II acting through IDFC alternatives Limited.

OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based

Combined Cycle Power Plant (CCCP) at Palatana, Tripura. The basic objective of the project is to monetize idle gas assets of ONGC in land-locked Tripura state and to boost exploratory efforts in the region.

Present Status

• OTPC`s first unit (Unit-1) was dedicated to the Nation by the Hon`ble President of India on 21stJune, 2013 and its commercial operation was achieved on 4thJanuary 2014 in presence of representatives of beneficiary states. The second unit was dedicated to nation by Hon`ble Prime Minister of India on 1st December, 2014 and its commercial operation was achieved on 24th March, 2015.

The Plant has been granted provisional tariff by Central Electricity Regulatory Commission (CERC). The Ministry of Power has allocated more than 86% of power from the project (two units) to the NER beneficiary states while 98 MW is allocated to OTPC for merchant sales. The OTPC has signed a gas sale and purchase agreement (GSPA) with ONGC for supplying Daily contracted Quantity of 2.65 MMSCMD of gas.

• The 663 KM long 400 KV double circuit transmission network Palatana-Bongaigaon transmission has been commissioned up to Bongaigaon by North-East Transmission Company Limited (NETCL), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states. This development is helping in evacuating power from both Unit-1and Unit-2.

• The total expenditure incurred on the project till 31st March, 2015 is Rs37511 million against the total estimated cost of Rs40,470million.

iii. ONGC Mangalore Petrochemicals Limited (OMPL)

Your company has promoted OMPL which has set up Aromatic Complex with an annual capacity 914 KTPA of Para-xylene and 283 KPTA of Benzene in Mangalore Special Economic Zone as value chain integration project of ONGC. The total project cost is about Rs68,750 million and commenced commercial operation from 1st October, 2014. 2,59,618 MT of Para-xylene and 61,788 MT of Benzene, have since been exported in the financial year, as the production is being ramped up. After successful commissioning of OMPL in October, 2014, MRPL has increased its equity from 3% to 51.002% in February, 2015 with balance 48.998% held by ONGC and thus OMPL has become a subsidiary of MRPL.

iv. Dahej SEZ Ltd (DSL)

Your company as Lead Promoter has developed a multi-product SEZ at Dahej in coastal Gujarat .Your Company is setting up C2-C3 Extraction Plant on its own and value-chain integration project - OPaL through JV route in this SEZ Area. Your company has 23% equity in the project with GIDC having 26% and balance 51% is proposed to be tied up through IPO / Strategic / Financial Investor.

Present status:

• SEZ is already operational and units in SEZ have clocked export of Rs19,740 million in FY 2013-14 and Rs21,050 million in FY 2014-15.

v. Mangalore Special Economic Zone Limited (MSEZ)

ith an envisaged equity stake of 26% along with KIADB (23%), IL&FS (50%),

OMPL (0.96%) and KCCI (0.04%),

ONGC has set up MSEZ to serve as site for development of necessary infrastructure to facilitate and locate ONGC/MRPLs Aromatic complex being promoted by ONGC.

Present Status:

Commercial Operation Date (COD) has been declared on 1st April, 2015.

vi. Petronet MHB Limited (PMHBL)

• PMHBL is a JV company wherein your company has an equity stake of 28.7% along with HPCL (28.7%) and PIL Petronet MHB limited (7.9%) with balance 34.57per cent of equity being held by leading banks.

• PMHBL owns and operates a multi-product pipeline to transport MRPLs products to the hinterland of Karnataka.

• In FY`15 PMHBL pipeline has achieved a throughput of 3.141MMT against total throughput of 3.073 MMT last year. As per audited results for the year 2014-15, the turnover and PAT of PMHBL are Rs1,071 million and Rs 341million respectively.

vii. ONGC TERI Biotech Limited (OTBL)

ONGC TERI Biotech Limited ( O T B L ) w h i c h w a s incorporated on 26th March, 2007 is a Joint-venture Company of ONGC in association with The Energy Research Institute (TERI), with shareholding of 49.98% & 48.02%, respectively. Through the efforts of joint research of ONGC & TERI over the years, OTBL is offering below mentioned technologies and providing various Biotechnical Solutions to Oil and Gas Industry, both in India and abroad:

OilzapperTechnology(Bioremediation)- used to eliminate & tackle Oil Spills, Oily Sludge, and hazardous hydro carbon waste;

Paraffin Degrading Bacteria (PDB)- used to prevent Paraffin Deposition in Oil well Tubing; Wax Deposition Prevention (WDP)- used to prevent Paraffin Deposition in surface and sub-surface flow lines; Microbial Enhanced Oil Recovery (MeOR)- used for Enhanced Oil Recovery by mobilizing crude oil trapped in pores of Oil Reservoirs. During 2014-15 the turnover of OTBL was Rs180.0 Million with Profit after Tax of Rs 45.1 Million as against turnover of Rs 141.0 Million and Profit after Tax of Rs 44.8 Million in the previous year.

viii. Petronet LNG Limited (PLL)

ONGC has 12.5 per cent equity stake in PLL, identical to stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG terminal of PLL having a capacity of 10 MMTPA is currently meeting nearly 20 per cent of the total gas demand of the country. Dahej LNG Terminal is being further expanded from 10 MMTPA to 15 MMTPA. The construction activities continue as planned and the project is expected to be completed by end 2016.

A new LNG terminal of capacity 5 MMTPA has been set up at Kochi and has already been dedicated to the Nation.

The Company is also planning to set up an LNG terminal of capacity 5 MMTPA at Gangavaram, Andhra Pradesh. The turnover of PLL during 2014-15 is Rs 395,010 million and net profit is Rs 8,825 million.

ix. Pawan Hans Limited (PHL)

ONGC has 49 per cent equity stake in PHL (previously known as Pawan Hans Helicopters Limited). Balance 51 per cent equity is held by the Government of India. PHL is one of Asia`s largest helicopter operators having a well-balanced operational fleet of 46 helicopters. It provides helicopter support for ONGC`s offshore operations. PHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC.

8. Other New Projects/ Business initiatives C2-C3-C4 Extraction Plant

• Your company has set up a C2, C3 and C4 Extraction Plant at Dahej having a capacity to process 5.0 MMTPA Rich Liquefied Natural Gas (LNG) from M/s Petronet LNG Limited (PLL) as feed stock, for extraction of C2, C3 & C4 products.

• The plant will be commissioned shortly.

• These extracted C2, C3 and C4 products would be feed stock for ONGCs promoted Joint Venture OPaL in the same SEZ at Dahej. They would form 40 % feed stock for upcoming OPaL Project.

• However till the starting operations and stabilization of OPaL, ONGC shall be producing LPG by blending C3 & C4 in the requisite ratio and would be sold to Oil Marketing Companies.

9. Alliances & Partnerships for Business Growth

a. MoU between ONGC, BPCL, Mitsui and NMPT

ONGC along its consortium partners BPCL and Japanese conglomerate Mitsui signed a MoU with the New Mangalore Port trust (NMPT) on 18t h March, 2013. The MoU documents Port`s No-Objection to carry out feasibility studies and intention to extend all cooperation to the consortium in this regard. The consortium has carried out the pre-feasibility study of the project and found that terminal is technically feasible and the same had been presented to NMPT. Based on the report, NMPT has conveyed its no objection to the consortium, for carrying out detailed feasibility studies for the identified locations, subject to adherence to navigational safety requirements. Commercial prefeasibility study is being carried out.

b. MoU for setting up a Special Purpose Vehicle (SPV) for implementing Renewable Energy projects

Your company is likely to be a lead partner in a Joint Venture Company being set up through Special Purpose Vehicle (SPV) for implementing large scale grid-connected solar, wind and other renewable energy (including hybrid) power projects.

An MOU for creating such a JVC was signed on 25th February, 2014 between the Ministry of New & Renewable Energy and Ministry of Petroleum & Natural Gas, Govt of India.

This JVC shall be for grid connected renewable energy and would be led by ONGC as the lead partner with likely 26% equity and other Oil upstream companies like OIL and GAIL along with EIL, IREDA and SECI as partners, equity percentage of each one of them to be decided later. Feasibility study for formation of SPV has been done by EIL and report has been submitted to MoPNG.

10. Information Technology

Considering the need to ensure implementation of cutting edge technology in all areas of operations and to ensure data integrity and security, ONGC has deployed state-of-the-art IT tools and technologies. In a knowledge-driven and technology-intensive industry such as oil & gas E&P, information technology establishes the vital synergy across the company`s many locations and varied workforce, essentially serving as its operations` lifeline. Many of the IT achievements of the Company are regarded as benchmarks in the industry in terms of implementation of widespread systems integration and process automation.

Highlights for the year 2014-15

• Consequent to allotment of transponder on GSAT 10 satellite in lieu of INSAT 3E by Department of Space, Govt. of India, Satcom stations were successfully migrated to GSAT 10 satellite using in-house capabilities. On the directive from MoP&NG, a meeting was held with representatives of Indian Space Research Organisation (ISRO) on 05.09.2014 to work-out the use of space applications in E&P sector. ISRO has constituted a five member team which will interact with ONGC team to work-out the use of space applications in E&P sector.

• ISO/IEC 20000: 2011 accreditation for IT Services has been extended to all locations covering entire ONGC, after successful external audit during 8th-12th September, 2014.

• Crisis Management Plan (CMP) for Countering Cyber Attacks and Cyber Terrorism prepared based on CERT-In template and got validated from security expert of CMC and submitted to EC for approval. CMP Incident Management team was constituted at corporate level, which will meet weekly or in case of requirement, to oversee resolution of incidents and discuss mitigation plans for upcoming / known threats & which are communicated by NCIIPC, CERT-in etc.

• Infocom has developed "O Drive" facility for ONGCians. With "O Drive" facility, documents can be stored in a centralized server which can be accessed from anywhere. This effort is alternative option to the usage of USB drives and thus contributes for Information security

• Developed a complete pipeline information system In-house and rolled out at Mehsana& Rajahmundry Assets. The system feature includes facility to view other geographical information such as nearby locations of hospitals, schools fire stations etc., facility to measure distance between any two points, liquid flow direction animation etc. Distinctive colours adopted for different type of lines. The facility can be accessed from anywhere on ONGC Intranet with user login authentication.

• Participated in the CERT-in simulated cyber-attacks based Cyber Security Drill on 23.12.2014, along with 47 other organizations, to assess ONGC preparedness to withstand the possible cyber-attacks. The Cyber Security Drill was completed successfully and Cyber Security Crisis Management Team was able to detect and analyze the incidents and inform CERT-in within given time.

• A portal for Public Grievances was developed in-house to facilitate public to launch their complaints online. This web-based Grievance redressal initiative of ONGC reinforces focus on Digital India project which aims to leverage technology to maintain the Citizen-Government Interface with the highest integrity. Through this portal, citizen/vendor/employee/former-employee can register their grievances relating to any operational wing of ONGC, through an online/single window system. Facility available for monitoring the complaint status by the complainer.

• A portal for JRM (Joint Review Meeting) of Technology and Field services was developed in-house to cater to the complete JRM requirements for conducting the meeting smoothly. JRM members can upload the presentations, tour program details, ATR for previous meetings etc. Notifications/ messages can be generated through this portal and be sent as SMS as well as mail to the members.

11. Health, Safety and Environment(HSE)

Safety, Occupational health and protection of environment in and around its workingareas are prime concerns of ONGC. ONGC has implemented globally recognized QHSE Management System conforming to requirements of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001(OHSAS) at ONGC facilities and certified by reputed certification agencies at all its operational units. During the year 2014-15, 412 Nos. of installations of ONGC were audited for certification/surveillance audit. Corporate guidelines on incident reporting, investigation and monitoring of recommendations was developed and implemented for maintaining uniformity throughout the organization in line with international practice.

A few highlights of HSE during 2014-15 are:

• Regular QHSE internal audits

• Fire safety measures including regular fire and earthquake mock drills

• Training on HSE related topics

• Environmental analysis

• PME of employees and Health Awareness programs

• Water and electricity conservation Noise and pollution reduction measures

• Material Safety Data Sheets(MSDS)

• Personal protective Equipment`s(PPE)

• Solid waste management and Developing E-waste disposal procedure

• Identification and implementation of Environment Management Programmes (EMP).

• Occupation Health & Safety(OHS) programs as per need of the unit

• Energy conservation awareness through display and communication

• Accident near miss and Governance Risk Compliance (GRC) reporting.

• Mines Vocational Training for Petty Contractual Workers

ONGC is now an Accredited Environment Impact Assessment (EIA) Consultant organization by Ministry of Environment & Forest (MoEF) in Oil and Gas Exploration Development and Production in Offshore/Onshore areas and Petroleum refining industry.

Approval by DSIR

ONGC Institutes have received the renewal of recognition of In-house R&D unit by Department of Scientific and Industrial Research (DSIR) for a period of five years (valid till 31st March, 2018) on 26.03.2013. This will enable ONGC Institutes to continue claiming weighted deduction in Income Tax (200%) against the expenditure towards R&D activities.

Patenting R&D Work

1. One Patent proposal of IRS, Ahmedabad on "Process and composition for cleaning scale deposits of effluent dispatch lines" has been submitted to Centralized Patent Cell, KDMIPE in March, 2015.

2. Patent application has been made by CEWELL for

patenting the innovative technique for TOC estimation. The TOC estimated by this technique in first shale gas well matches very well with TOC data obtained through laboratory study on cutting samples. This validates the new technique developed by CEWELL and its applicability in Indian basins.

12. Carbon Management & Sustainability Development

ONGC being one of the premier energy majors of the world and the highest profit earning PSU of India realises its responsibilities in ensuring sustained development through protection of the ecological system. It therefore strives to position itself as a leading organisation in sustainable management and is aiming to achieve sustainable development through a holistic approach to carbon management. ONGC believes that focused Carbon Management efforts are an ideal route to cover the elements of our business specific sustainable development issues across the environmental dimensions. A critical area of environmental sustainability is mitigation of global greenhouse gas from operations. It isan organizational objective for us to progressively reduce our carbon footprint by working towards reduction in both direct and indirect energy consumption.

Sustainable development requires contribution of all the societal players and with increasingly dominant role of modern day corporates; they can contribute significantly towards sustainable development. ONGC has created a small group called "Carbon

Management & Sustainability Group" with a mandate for developing CDM projects, Sustainability reporting, Carbon & Water Management and focussed R&D in the area of low carbon. The following efforts undertaken by ONGC illustrate its commitment to Sustainable Development:

Project status:

1. Clean Development Mechanism (CDM):

ONGC commenced its CDM journey in 2006. Till date, ONGC has registered 12 CDM projects with UNFCCC. 2 new CDM projects validated and 2 already registered projects successfully verified for issuance of CERs.

Validation of New CDM projects

1. Gas Flare Recovery at GGS Chariali, Assam

2. Energy Savings by replacement of MOL pump at Neelam&Heera Asset

Verification & Issuance of Registered CDM projects

1. Gas Flaring Reduction at Uran Plant

2. 51 MW wind power project of ONGC at Surajbari

2. Carbon and Water Foot printing: Carbon Foot printing:

GHG Accounting & GHG mitigation projects

Comprehensive company-wide GHG accounting had been completed for the base year 2010-11 and it is found that ONGC has 8,234,853 and 281,178 tons of CO2 emissions under Scope 1 - Direct Emissions and Scope 2 - Energy Indirect Emissions respectively. Based on the study, 11 focus areas and projects have been identified. It is proposed to undertake the feasibility study of eleven identified GHG mitigation projects.

Global Methane Initiative (GMI):

The Global Methane Initiative (GMI) is an action-oriented initiative from United State Environmental Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. The Global Methane Initiative facilitates cooperative mitigation activities that result in bringing more gas to markets through Identification, Quantification, and Reduction (IQR) path.

ONGC entered into a MoU with the USEPA in August 2007, to undertake Methane to Market (now GMI) projects in ONGC and over the years since its joining into the program, ONGC has formed a dedicated team and has procured methane emission detection and measurement equipment in order to undertake Fugitive Emission detection and quantification at its operating facilities and has reduced approx. 14 MMSCM over the years. This is equivalent to reductions of over 2 lakhs tCO2e emitting into atmosphere.

Fugitive emission Identification & Quantification (IQ) jobs have been completed as per Performance Contract (PC) targets. Assam Asset, Ankleshwar Asset &Hazira plant were mapped for fugitive emissions. The reports have been submitted to respective work centres to take corrective actions.

Water Foot printing: Sustainable water management:

Every business depends and impacts on water resources. The future of business depends on the sustainability of water resources, which are increasingly under pressure. With freshwater supplies tightening due to overuse and more extreme weather patterns, business is coming under more pressure to measure and cut water use. ONGC is concerned towards the risks and benefits of water management and exploring new techniques to cut consumption. ONGC`s Sustainable Water Management policy is based on philosophy of 4 "R" i.e. Reduce, Reuse, Recycle & Replenish. CM&SG is entrusted with the responsibility of steering SM projects across ONGC. CM&SG is working on following projects in this area: Water footprint study in Ahmedabad Asset and IPSHEM, Goa:

For the first time an in-house footprint study has been done without engaging any external agency. The project was completed ahead of schedule.

Setting up sea water desalination plant at Uran:

LOA for techno-commercial and environmental feasibility study for proposed 20 MLD sea water desalination plant has been placed on M/s MECON India. Setting up desalination plants at ONGC work centres located near coastal areas and at MRPL: It is proposed to set up desalination plants at ONGC work centres located near coastal areas (Hazira Plant, Ankleshwar Asset, Cauvery Asset-Karaikal, Rajahmundry Asset & Eastern Offshore Asset-Kakinada) and at MRPL as a SM measure, in order to mitigate future sustainability risk due to declining fresh water availability. It is proposed to initially conduct techno-commercial and environmental feasibility study and based on the affirmative outcome of the feasibility report, implementation of setting up desalination plant at the respective work centre may be undertaken.

Rain water Harvesting:

Rain ater Harvesting (RWH) projects are implemented/ being implemented at different work centres of ONGC under the umbrella of Sustainable Water Management. The harvested water is being used for beneficial use like gardening, toilet flushing, etc and also for recharging of ground water aquifers. The RH projects have been taken up at Ahmedabad Asset, Tripura Asset, WOB Vadodara and IPSHEM Goa.

Sewage Treatment Plant (STP) at Mehsana Asset:

Administrative approval accorded for setting up three STP`s (each of capacity 100 KLD) at ONGC Nagar, Mehsana. Finalization of scope of work and tendering process is being taken up by Mehsana Asset.

Produced Water Management at Mehsana Asset:

CM&SG and Mehsana Asset have jointly undertaken produced water management in a holistic manner through a Multi-disciplinary Team (MDT) under sustainable water management umbrella in line with EC decision.

Integrated Watershed/Check dam Management at Mehsana:

ONGC as a responsible corporate wants to expand its activities in sustainable water management beyond its operational boundaries. As a first step Mehsana Asset has been chosen as it is one of the worst affected regions as far as water scarcity is concerned. The project will be a CSR project in association with CM&SG, Mehsana Asset and local concerned authorities. The project is at present exists as a concept and implementation roadmap is being worked out.

SD through focussed R&D and collaborations

ONGC is committed towards reduction of greenhouse gases (GHG) emissions and is actively pursuing various R&D projects towards CO2 capture and sequestration in following ways:

• Sequestration by Algal biomass

• Conversion into useful products

ONGC has signed NDA (Non-Disclosure Agreement) with following Finnish agencies

• Ripasso Energy, Sweden in the field of Solar CSP-ST technology,

• Chempolis, Finland in the area of 3G bio refinery.

• Cleen, Finland in the area of CCSP, EFEU and BEST program

• VTT, Finland in the area of water management

At present, however, CM&SG has been pursuing the CCSP programme with CLEEN for the CO2 capture and reformation programme at Hazira plant.

Setting up of 3G Bio-refinery

ONGC is planning to setup a 3G bio-refinery (first of its kind in India) to meet the government mandate of E95 (blending of 5% ethanol to gasoline). To this effect, ONGC had signed NDA &MoU with Chempolis, Finland. This endeavor would create a new business dimension for ONGC. Chempolis had conducted feasibility study for the state of Punjab and the same is under consideration.

Carbon Capture & Sequestration

ONGC has also collaborated with CLEEN, Finland in the area of carbon capture and joined its program named Carbon Capture & Storage Program (CCSP). This program works on sharing knowledge among consortium members and working on the specific goals. Consortium agreement has been signed for ONGC specific work package at Hazira.

Solar power CSP-ST technology

Ripasso Energy has specific and unique expertise in the Concentrated Solar Power (CSP) technology. CSP technology is based on "Stirling Engine technology", a unit has a typical power output of 30 KW. An inherited modular design ideally suited for volume electricity production with an outstanding conversion efficiency of 32%, provides a number of benefits compared to other solar thermal technologies. CM&SG is in talk with Rippaso Energy for establishing a 3MW pilot solar power project at Gamnewala, Jaisalmer. The project proposal is under consideration.

Pilot project on CO2 sequestration through microalgae at Hazira plant

Algae have recently received a lot of attention as a new biomass source for the production of renewable energy. Some of the main characteristics which set algae apart from other biomass sources are that algae have a high biomass yield per unit of light and area, can have a high oil or starch content, do not require agricultural land, fresh water is not essential and nutrients can be supplied by wastewater and CO2 by combustion gas.

The pilot project was set up at Hazira plant with an aim to sequester CO2 from vent gas (released during sweeting process of sour gas) with the microalgae and convert into value added products. The results are encouraging which shows that 50% of the CO2 from the SRU vent could be absorbed by the absorption medium in the absorption column at a pressure of 0.5 Bar. The carbonated medium, when transferred to the raceway pond, inoculated with microalgal strain, showed appreciable algal growth (18 g/m2/day), which was harvested. The harvested biomass was tested at BITS Pilani, Goa Campus for the potential of bio-methane generation. It was found that the biomass have good potential of bio-methane generation. (336 Litre/ when fed with 0.5 KgVS /m3/day).

Waste to Fuel project (under Swach Bharat Abhiyan)

MoP&NG has desired to take a project on waste to fuel at Puri, Odisha under Swachh Bharat Abhiyan (SBA) as a part of Corporate Social Responsibility. The project being of specialized nature and involving technical expertise is being steered by CM&SG. Following steps were taken:

• MDT has been formulated to take project forward

• Meeting with Puri administration had been concluded.

• Draft EoI has been put up for approval before floating for identifying technology and prospective bidders.

Disclosing sustainability performance- Sustainability Reporting

Sustainability reporting, the practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development is being increasingly adopted by organizations. Sustainability Reporting is also believed to lead to improved sustainable development outcomes as it allows organizations to measure, track, and improve their performance on specific issues along the three bottom lines.

Published third party assured A+ sustainability report

for ONGC group of companies including ONGC Videsh and

MRPL (GRI-G3.0 complaint with Oil and gas sector supplement and BRR).

Capacity building & knowledge Dissemination

CM&SG has three tier knowledge dissemination approaches on carbon, water management and sustainable development.

• Annual Training Program at ONGC Academy

• Programs at Petrotech

• Awareness programs at different work-centers

Total seven awareness programs were conducted by CM&SG at CFB Silchar, RFB Jodhpur, estern Offshore Basin Mumbai, MBA Basin Kolkata, Cauvery Asset Karaikal, OB Vadodara and Cauvery & KG-PG Basin. Total 240 executives participated in the program.

A two day 3rd CM&SG meet was conducted at Goa in January, 2015 for an in depth interaction of CM&SG and SD officers from all ONGC work centers to strategize the pursuit of SD activities in ONGC.

A two day seminar on "Innovation for Sustainability Dividend" was conducted by CM&SG in association with Petrotech Society at Delhi during November, 2014. The seminar was attended by representatives across Indian oil & gas industries, institutes working in the sustainability and representatives from ONGC.

SD brochure was published during 3rd CM&SG meet. The brochure would be a communication tool to communicate ONGC`s triple bottom line performance (economic, social and environmental) and sustainability practices. This brochure highlights the considerable work done in the sustainability space, SD initiatives and performance. Film on Sustainability was unveiled during 3rd CM&SG meet by Governor of Goa in the presence of Director-I/c-CM&SG.This small film highlights the journey of ONGC in the pursuit of sustainable development. Stake holder engagement meet

Two stakeholders engagement meets were organized to map and prioritise the key sustainability issues of ONGC. The first meet was meant for internal stakeholders who had prioritized the set of issues which would impact the business sustainability of ONGC. The second meet was for the external stakeholders who had prioritized the issues whose impacts on ONGC would impact their business sustainability. The outcome of the two reports, upon juxtaposition, has generated the key materiality issues of ONGC to work upon. This is the first time such an exercise was undertaken.

Other Initatives:

Corporate Waste Management Policy: Your company approved Corporate aste Management Policy and the same will be reviewed after every three years.

Trading policy on monetizing of CER shas been approved and will be operational shortly.

Carbon Neutrality: ONGC has taken a conscious decision to reduce its carbon footprint as a part of its sustainable development programme. As a first step towards this mission, CM&SG has undertaken a maiden initiative to render the carbon footprints of three major areas neutralised for 2013-14. The areas are :

• Air travel of all ONGC employees including to and fro local surface transportation to airport.

• Consumption of electricity, paper, LPG and fuel for local transportation from IPE Campus, IDT, IEOT, IRS and IPSHEM

• Flaring and electricity consumption of Uran Plant. Carbon neutrality is essentially a concept of having a net zero GHG footprint of an activity. The entire process involved a detailed GHG accounting of the activity and offsetting the footprint. The total footprint of the activities is 1,37, 345 tons of CO2 equivalent and has been offset by retiring an equivalent quantity of carbon credits issued against the registered CDM projects of ONGC.

13. Business Responsibility Report - 2014-15 Securities & Exchange Board of India has introduced Clause 55 to the Listing Agreement with the Stock Exchanges, which states that Listed entities shall submit, as part of their Annual Report, Business Responsibility Report, describing the initiatives taken by them from an environmental, social and governance perspective. Accordingly, the third Business Responsibility Report - 2014-15 has been drawn up and forms part of the Annual Report for 2014-15.

14. Internal Control System

Your Company has a well-established and efficient internal control system and procedure. The Company has a well-defined delegation of financial powers to its various executives through the Book of Delegated Powers (BDP). The Integrated BDP is updated from time-to-time in line with the needs of the organisation as well as to bring further delegation. BDP has been revised during FY 14-15 and the same has been made effective from 01.01.2015. The Company has in-house Internal Audit Department commensurate with its size of operations. Audit observations are periodically reviewed by the Audit &Ethics Committee of the Board and necessary directions are issued whenever required.

15. R&D EFFORTS THROUGH ONGC ENERGY CENTRE TRUST(OECT)

Your company has taken steps to evaluate various forms of energy to fulfil the country`s growing energy needs. Towards this end, your company has established an ONGC Energy Centre Trust (OECT), which is mandated to undertake or assist in programs / projects of fundamental and applied research for improving and developing commercially viable energy mediums and sources beyond hydrocarbons, especially in clean and/or renewable energy options. ONGC Energy Centre (OEC) has been set-up under the aegis of the OEC Trust to work on various clean energy options.

Your company through ONGC Energy Centre has been implementing several Research Projects on new and alternative sources of energy. These Projects are in advanced stages of implementation, in collaboration with various national and international academic, research and industrial organizations. The projects where your company is currently engaged in are:

a) Hydrogen Generation through Thermo-chemical Processes

b) Exploration for Uranium

c) Bioconversion of lignite to Methane

d) Bioconversion of Oil to Methane

e) Kinetic Hydro Power

f) Geothermal Energy

g) Solar Thermal Project

These apart, during 2014-15, ONGC Energy Centrehas also evaluated many new options to expand the research and technology development activities and also to focus on optimum utilization of resources available with ONGC. These efforts have been described in detail in the Annexure Con Energy Conservation.

Further, a Board Level Committee on Research & Development has been constituted. The first meeting of the Committee was held on 27.05.2015 and the terms of reference of the Committee have been approved.

16. Human Resources

Your Company values its Human Resources the most. To keep their morale high, your company extends several welfare benefits to the employees and their families by way of comprehensive medical care, education, housing and social security.

17. Employee Welfare

Your Company continues to extend welfare benefits to the employees and their dependants by way of comprehensive medical care, education, housing, and social security. Your Company continues to align company policies with changing economy and business environment.

Employee Welfare Trusts -

Your Company has established the following major Trusts for welfare of employees:-Employees Contributory Provident Fund(ECPF) Trust, manages Provident Fund accounts of employees of your Company.

The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pension fund of employees of your company which has been converted into a Defined Contribution Scheme as per DPE guidelines.In the converted Defined Contribution Scheme, the corpus in the individual employee account shall include employer/ employee contributions and interest thereon. The benefits under the Scheme are dependent on corpus in the individual employee account and accordingly, would be market determined which depends on interest rate, annuity price etc.

The Composite Social Security Scheme(CSSS) formulated by your company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. In case of Separation other than Death/Permanent total disability, employees own contribution alongwith interest is refunded.

Gratuity Fund Trust exists for payment of gratuity as per the provisions of the Gratuity Act. Your Company has a Sahayog Trust for its Sahayog Yojana to provide ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the Welfare of the workforce and their kin, who do not have adequate means of support. The beneficiaries under this scheme includes casual, contingent, daily rated, part time, adhoc, contract appointees, tenure based employees, apprentices and trainees employed by your Company besides regular and past employees. Under the scheme an amount of Rs 5770 million were disbursed by the Trust during the year.

Extension of Benefits under the Asha Kiran Scheme to retired employees:-

The Asha Kiran Scheme was introduced to meet the emergency needs of the ex-employees retired prior to 01.01.2007, who are passing through distressful situation. The scheme was launched as per DPE guidelines by creating a corpus of 1.5% of PBT. During the year, under this scheme financial assistance of Rs1780 million was provided to 14698 ex-employee.

Persons with Disabilities

ONGC believes in affording equal opportunities to physically challenged people. As on 31.03.2015, there were 156 permanent employees with disabilities (0.5%) on the rolls of ONGC.

Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Castes(SC) and Scheduled

Tribes (ST) employees were 15 percent and 9 percent respectively as on 31st March, 2015.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their uplif tment in and around its operational areas:-

Annual Component Plan:

Under Annual Component Plan for SC/ST, every year an allocation of Rs 200 million is made. Out of this, Rs 60 million is distributed amongst all the Work centres of ONGC for taking up activities for welfare of SC/ST Communities in and around the areas of our operations. In addition, Rs 140 million is managed centrally, and is earmarked for Special projects/ proposals/schemes for the welfare of areas/persons belonging to SC/ST communities. The amount under component plan is utilised for taking up various welfare measures for the welfare and upliftment of the needy people of SC/ST Communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical and Health Care.

Scholarship to SC/ST meritorious students

Your Company provides scholarships for meritorious SC & ST students from 100 to 500 for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The major feature of the scheme is that the scholarships have been equally divided for both Boys and Girl students and the amount of scholarship has been made out to Rs4,000/- per month per student subject to the conditions of the scheme. The annual budget for the scheme on its total implementation is Rs76 million per annum.

18. Industrial Relations

During the year your Company maintained harmonious Industrial Relations throughout the Corporation. Mandays loss due to internal industrial action was reported as `NIL for the year 2014-15.

19. Grievance Management System (GMS) :

Your Company provides an easily accessible machinery to the employees for redressal of their grievances, either through informal channel (open hearing day) or through formal channel. On 26th January, 2015 a web-portal, "Public Grievance Portal", was launched, which will provide redressal of grievances of all stakeholders. This portal is a step further to empower each stakeholder viz. citizen/vendor/employee/former-employee to register their grievances related to any operational wing of ONGC, through a single window on corporate web por tal. A structured apparatus has been operationalized to process the grievances within a limited time frame

Public Grievance Management System

All Key Executives of your company have designated a publicized time slot thrice in a week to meet Public Representatives in order to speedily redress their grievances.

20. Implementation under the Right to Information Act

An elaborate mechanism has been set up throughout the organization to deal with requests received under RTI Act, 2005.There are two Central Public Information officers (CPIOs) based at the Registered Office at Delhi and 22 Central Assistant Public Information officers (CAPIOs) have been designated at different work centers across the country to redress the issues under RTI Act 2005.

69 applications were carried forward from the year 2013-14 to 2014-15. 1790 applications were received during the year 2014-15; making a total of 1859. In addition, 66 First appeals were carried forward from the previous year to financial year 2014-15 and 261 were received during the period. All the aforesaid 327 first appeals were disposed off by the appellate authority of ONGC and orders passed by the authority were complied with in stipulated time frame.

21. Implementation of Official Language Policy

Your Company makes concerted effort to spread and promote Official Language. In this effort some of the steps taken during the year were: -

(i) Company has introduced Unicode Hindi software in all our offices. (ii) Hindi workshops are conducted at regular intervals(iii) Hindi seminars and `Kavi Gosthies` organized in Dehradun and Delhi. (iv) ONGC actively contributed in publishing bilingual Petroleum Terminology, initiated by MoP&NG. (v) Hindi Teaching Scheme of Govt. of India is effectively implemented at all regional work centres.

22. Human Resource Development

33,185 ONGCians (as on 31st March, 2015), which includes 26,656 executives and 9,529 non-executives, dedicated themselves for the excellent performance of your company during the year. The workforce intake strategy pursued by your Company caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, fast changing level of technology, physically challenging work environment, fluctuating product prices and growing competition. Your Company has drawn up a scientific manpower induction plan aligned to the business plans as well factoring the manpower profile of the Company. Your company believes that continuous development of its human resources fosters engagement and drives competitive advantage.

Towards that end, during the year, your Company conducted Business Games to hone the business acumen of its executives. Business Game has proved to be very popular initiative and tests the ability of the executives through business quizzes, business simulations and case-study presentations. During the year 2014-15, a total of 144 teams and 576 executives participated in the event. Fun Team Games (FTG) were organized for E0 and staff level employees to inculcate MDT(Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. A total of 75 Teams and 300 employees participated in FTG during the year 2014-15.

The winners of Business Games and Fun Team Games were felicitated by the CMD on Republic Day Celebrations. Your Company also conducted the Assessment Development Centre (ADC) for 192 DGM level executives (0.81% of executives) and provided them developmental inputs. Your Company has partnered with global HR consulting firms to create a pool of accredited mentors in the organization. These mentors will support organization`s effort to hone young minds to successfully respond to the emerging business needs of your Company. As part of this Initiative, in the year 2014-15, 36 mentorship workshops were conducted. Also, 123 mentors have been awarded Basic and Advanced level Accreditations for mentoring.

Training

Your Company attaches utmost importance to the development of its human resource.Your Company has branded the spectrum of its training activities as `EXPONENT - a comprehensive Programme, which is nurturing the energy leaders of tomorrow. The growth of an ONGCian to an Exponent of energy business is facilitated by ONGC Academy, Regional Training Institutes and other specialised in-house training Institutes and world class training providers in India and abroad.

During the year , a total of 20084 Executives and 4729 non-executives were imparted appropriate training, spanning 176644 executive mandays (Number of executive mandays per executive per year: 7.49) and 16119 non-executive mandays (Number of nonexecutive mandays per executive per year: 1.69) during 2014-15 at all Work centres. In order to absorb new and emerging technological advancements pertaining to oil and gas exploration and production, 85 programmes, including 26 foreign faculty programmes pertaining to functional disciplines, were organized with the best of faculties from India and abroad during the year.

To nurture the talent with the objectives to prepare future leaders of the organisation for taking up higher roles and address key organisational challenges, 338 executives of E7, E6 and E5 level were exposed to Leadership Development Program (LDP), Advanced Management Program (AMP) and Senior Management Program (SMP) respectively, the tailor made Management Programmes with overseas learning component through tie-ups with leading B-schools of the country.

23. Women Empowerment

Women employees constituted over 6 percent of your Company`s workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its lady employees for programmes organized by reputed agencies.

Your company scrupulously complies with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013. Reported cases of Sexual harassment are inquired into by Complaint Committee constituted separately for all the work-centres, for taking disciplinary action against the delinquent employees.

24. Work-Life Balance:-

Your Company continued in its endeavors to ensure work-life balance of its employees. The townships at many work-centers were provided facilities like gymnasiums, music rooms, etc. Outbound programmes with families were also organized at various work-centers. Plays on the importance of Work-Life Balance` were staged to create awareness amongst the employees. In addition, cultural programmes involving employees and their families were also conducted. MahilaSamitis and Resident Welfare Associations (RWAs) were involved in the organization of these cultural programs. Your Company has a adventure wing named ONGC Himalayan Association which organizes adventure programmes like mountaineering, trekking, white water rafting, snow skiing, desert Safari, Aero sports etc. which adds towards morale, engagement, team spirit, camaraderie, stress management and spirit to explore unknown among the employees.

25. Sports

Your Company continued its large scale support for development of sports in the country in the form of job offers & scholarships to deserving sportspersons. Sponsorships to various sports associations / federations / sports bodies to organise sports events as well as develop infra-structure were also extended. Your Company extended support in 23 game disciplines to 170 players on regular rolls and 167 players on scholarship. The support has enabled many sportspersons to bring home laurels for the nation and the organisation. Some of the key achievements during the year are given below:

Your Company was conferred the prestigious Rashtriya Khel Protsahan Puruskar by Hon`ble President of India Mr. Pranab Mukherjee at a glittering ceremony in Rashtrapati Bhavan on the occasion of National Sports Day on Friday 29th August , 2014. CMD Mr. D.K.Sarraf received the honour from the President.

Two ONGCians were conferred with the prestigious "Arjuna Award" for the year 2014; Ms. Heena Sidhu in Shooting and Mr. V. Diju in Badminton. The total number of National Awardees in the organization stands at 24 (KhelRatna - 1, Padma Shri - 2 & Arjuna - 21) In Commonwealth Games 2014 held at Glasgow (UK) a total of 20 ONGC athletes had participated in this 12 day long mega event and bagged 6 medals (1 Gold, 3 Silver & 2 Bronze) which is a pretty healthy success rate

In Asian Games 2014 held at Incheon (Korea) a total of 40 ONGC athletes had participated and bagged 13 medals (4 Gold, 1 Silver & 8 Bronze).

Mr.Sourav Kothari won the Gold Medal at the Asian Billiards Championship.

Your Company was awarded the prestigious FICCI Certificate of Excellence for the "Award for long time contribution to Indian Football" for the year 2014 [this is the first time in the history that an organisation has been awarded successive FICCI Awards]. Mr. Pankaj Advani of ONGCwon 12th world title in cue sports. In the year 2014-15 he won World Billiards title in time & point format, 6 red world snooker championship and orld team Billiards Championship.

Ms. Rashmi Kumari of ONGC won the singles title of orld Cup (women) in carom.

26. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your company is fully engaged in ensuring equitable and sustainable growth of society in and around the area of its operations besides complying with government directives to discharge its social responsibility as a leading Indian corporate. CSR activities are essentially guided by project based approach in line with the provisions of Companies Act, 2013 promulgated by Ministry of Corporate Affairs and Companies (CSR Policy) Rules and the guidelines on CSR& Sustainability issued by Department of Public Enterprise, Government of India. Seeking to herald an inclusive business paradigm, ONGC has CSR interventions that are based on social, environmental, and economic considerations and are well-integrated into the decision-making structures and processes of the organization.

Pursuant to enactment of Companies Act 2013 and Companies (CSR Policy) Rules 2014 by Ministry of

Corporate Affairs and Guidelines on CSR and Sustainability by Department of Public Enterprise, the CSR Policy has been approved by the Board of Directors. The same is uploaded on the Company`s website. Further, in line with the approval of the Board, ONGC has set up and registered ONGC Foundation under the Societies Registration Act, for carrying out CSR activities. Necessary steps are on hand to recruit manpower for making ONGC Foundation an effective tool for implementation of CSR policy of ONGC. Pursuant to Rule 9 of Companies (Corporate Social Responsibility Policy) Rules, 2014 the Annual Report on CSR activities is annexed herewith as Annexure `C`. CSR ACTIVITIES UNDERTAKEN BY ONGC BASED ON ITEMS LISTED IN SCHEDULE VII OF THE COMPANIES ACT, 2013

• Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and including contribution to Swachch Bharat Kosh set up by Central Government for promotion of sanitation, making available safe drinking water:

• Promoting education, including special education and employment enhancing vocation skills. Especially among children, women, elderly, and the differently abled and livelihood enhancement projects.

• Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups.

• Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to clean Ganga fund set up by the central government for rejuvenation of river Ganges.

• Protection of national heritage, alt and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional and handicrafts

• Measures for the benefit of armed forces veterans, war widows and their dependents.

• Training to promote rural sports, nationally recognised sports, Paralympics sports and Olympic sports.

• Contribution to the Prime Minister`s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste& the Scheduled Tribes, other backward classes, minorities and women.

• Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government.

• Rural development projects.

• Slum area development.

In the last 7 years, your company has contributed Rs18,807 Million towards its well-structured and well-focussedCSR activities.

Out of the CSR Budget of Rs6,606.12 million, ONGC spent an amount of Rs4,952.29 million in FY 2014-15. This translates to overall utilization of 74.97% of the CSR Budget.

Reason for non-utilization of full CSR budget:

• Major Initiatives undertaken were mostly in transition phase so the allocated earmarked budget could not be spent.

• Some of the flagship projects undertaken were of long gestation period with budget spread over 3-5 years thus resulting in lesser utilisation of earmarked budget for the financial year 2014-15.

Some of the landmark CSR initiatives under implementation during the year 2014-15 by your Company include:

(a) Healthcare:

(i) Varisthajana Swasthya Sewa Abhiyan: ONGC and Help-Age India Initiative

To provide basic medical facilities to elderly in terms of medical consultancy, medicine distribution, basic diagnostic test, special health camp and palliative care at their doorstep. A total of 20 Mobile Medicare Units (MMUs) are engaged for taking basic healthcare to the doorsteps of the elderly in nine states, 17 Districts, 35 blocks and 131 Gram Panchayat and 240 villages of India .A total of 11,86,020 beneficiaries were treated for chronic illness such as Hypertension, Diabetes, Osteoarthritis, Dyspepsia& Skin problems etc.

(ii) Community Hospital in Lakhimpur- Kheri, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of Rs45 million contribution by ONGC and Opex borne by the Operating Partner. This 26 bedded Community Hospital would cater to Primary and Secondary Health Service Requirements from BPL, Economically Backward Class families. Healthcare services are being provided at 50% less cost than the existing CGHS rates.

(iii) Aids and Appliances to person with disability:

This is a Pan India CSR project undertaken in association with Artificial Limbs Manufacturing Corporation of India (ALIMCO) and Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS), Jaipur commonly known as Jaipur Foot benefitting 45,495 Person with Disabilities. Beneficiaries were provided

Orthopedic, Hearing and Visually Aids and Appliances. The total financial implication of the project was Rs262 million covering 39 ONGC operational areas and 61 Backward Districts in Phase-I of the project which concluded in the financial year 2014-15.

(iv) Government General Hospital (GGH), Kakinada:

ONGC has given financial assistance of Rs19 million to construct a separate building for blood bank and to equip the hospital with additional equipment for blood bank, general surgery and general medicine departments. This will immensely benefit people of East Godavari District where ONGC has a substantial operational presence

(v) ONGC Mission Ujala:

The project envisages eye screening of 50,000 children in Government Schools in NCR under National Blindness Control Programme of Govt. of India in collaboration with reputed NGO PRAANI. Spectacles to 3,000 children detected with refractive errors along with medicines were provided under this project.

(b) Education & Vocational courses:

i. ONGC-GICEIT Computer Education Program:

Through this project, employment- related free computer education is being imparted to economically underprivileged Youth. The project is implemented in association with Bhartiya Vidhya Bhawan`s Gandhi Institute of Computer Education and Information Technology, (GICEIT) at five work centres of ONGC located at Mehsana, Dehradun, Nazira, Karaikal and Rajahmundry. More than 8295 students have received computer training through these centers in the financial year 2014-15.

ii. ONGC-The Akshaya Patra Foundation:

A centralized fully automated mechanized kitchen is being set up to provide mid-day meals to school going children (enrolled in Govt. schools) in the District of Surat. This kitchen was inaugurated by the Hon`ble Chief Minister of Gujarat Smt Anandiben Patel on 15th Feburary, 2015. This kitchen has capacity to feed 2,00,000 children per day. The enrolment as on 31st March, 2015 is 1,90,840.

iii. Community School at Sitapur, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of Rs27 million contribution by ONGC and Opex borne by the Operating Partner-Shanti Devi Memorial Charitable Trust.

iv. ONGC Super 30

"ONGC Super 30" is a residential Coaching Programme for IIT aspirants based at Sivasagar Assam. The total cost of the project is Rs6.70 million. The

initiative was conceived to cater to underprivileged and below poverty line students who are unable to get proper coaching to qualify engineering exams due to lack of resources and funds.

(c) Projects for Physically and Mentally challenged

i. ONGC Centre for vocational rehabilitation for the differently abled:

A financial support of Rs13 million has been provided to Tamana School of Hope, Vasant Vihar, New Delhi for setting up of Autism Centre and provide vocational training for the mentally challenged young adults and children working for their economic rehabilitation by teaching relevant vocational skills to them.

ii. ONGC -Cheshire Home Project for Physically and Mentally Challenged:

A project on health rehabilitation and allied services for economically disadvantage children with disabilities living in slums area of Mumbai undertaken with Cheshire Homes (India) Mumbai with financial assistance from ONGC. Children with Disabilities were identified from areas of Hanuman Nagar, Damu Nagar and Shivaji Nagar covering 3 slum communities and provided with rehabilitation treatment and aids with an objective to help them lead a normal life.

(d) Environment Sustainability:

i. Eastern Swamp Deer Conservation Project

(Phase II) :

The phase II of the project includes capture of Eastern Swamp Deer from the source i.e Kaziranga National Park and translocate them to Manas National park. This is a research based project to conserve and increase the viable population of Eastern Swamp Deer in their natural habitat at Manas National Park. The total cost of the project is Rs 8.9 million.

ii. Harit Moksha: Green Cremation System

This is a unique CSR initiative of ONGC undertaken with MokshdaParyavaranEvam Van SurakshaSamiti (MPEVSS) to reduce wood consumption during traditional cremations through Mokshda Green Cremation Systems (MGCS). The project includes installing 30 units of green cremation system in 8 cities of 7 different states with a budget of Rs92 million . The project helped in saving approximately 13,700 tonnes of wood & reduced 26,500 tonnes of GHG emissions till date.

(e) Development of Backward Districts:

The sustainable development project is being implemented in Jaisalmer, a backward district in Rajasthan. Project involves setting up of 49 Wind Turbine Generators (WTG) each of capacity of 2.1 MW with total capacity of 102.9 M in association with M/S Suzlon Energy Ltd. ONGC contribution towards the project is Rs 5620 million. 22 nos. of WTG have been installed.

(f) Women Empowerment:

ONGC as a leading organization and among the founder member of Women in Public Sector (IPS) established way back in 1990 under the aegis of SCOPE has always spearheaded women empowerment Initiatives. Women Development Forum (WDF) an internal wing of ONGC women Employees was also formed in line with WIPS to encourage women employee to explore their potential to the fullest.

The basic aims and objectives of WIPS are:

• To promote the growth and development of omen in Public Sector.

• To assist the Public Undertakings in optimising the full potential in omen employees.

• To play a catalytic role in improving the status of omen in and around PSEs

Women in Public Sector (WIPS) presented ONGC with the Best Enterprise Award for Women Empowerment consecutively for 3 years till 2014. In the year 2015 ONGC was awarded the second prize for the same category.

(g) Other CSR Initiatives:

i) Hortoki Water Supply Scheme: The project aims to create a sustainable source of safe drinking water to the people of Hortoki Village, Kolasib District, Mizoram. A massive 1.7 Lakhs litre water tank was constructed as part of the project to supply more than 40 lpcd of water till 2043. ONGC has extended support of Rs 9 million for the project. More than 450 households of Hartoki village are benefited through this project

ii) Rajeev Gandhi International Sports Complex, Dehradun: ONGC in association with Govt. of Uttarakhand is working towards building a Cricket stadium-cum-sports complex with a capacity of 30,000 people extendable to additional seats in future, car parking, a sports academy, a club house or Gymnasium, restaurant and other auxiliary facilities. ONGC has extended financial support of Rs500 million towards the project. The project is expected to be completed in two years.

iii) Dashrath Stadium at Agartala: The project aims to create an Indoor sports complex in association with DDO Directorate of Youth Affairs. ONGC has extended support of Rs 243 million for the project.

iv) IIIT, Agartala: ONGC has extended support of Rs30 million for setting up a new IIIT Campus in Agartala.

In addition to above major CSR initiatives undertaken in 2014-15, ONGC has partnered with many NGO and other non- profit organization in implementing several other CSR initiative across our country. All work centres of ONGC have designated CSR office to take care of the local needs.

As a testimony to our CSR efforts, your company has won many laurels such as:

1. Golden Peacock Award 2014 for CSR during 9th International Conference on Corporate Social Responsibility-2014

2. ABP News Global CSR Excellence & Leadership Award for Best Overall CSR practices

3. 4th Annual Greentech CSR Platinum Award 2014 in petroleum exploration sector

4. Madan Mohan Malviya Golden Award for outstanding contribution in the field of Education

5. P L Roy CSR Award on `International Day of Olde Persons` for support to the elderly through its CSR initiative `Varishthajana Swasthya Sewa Abhiyan`

27. ACCOLADES

Consistent with the trend in preceding years, your Company, its various operating units and its senior management have been recipients of various awards and recognitions. Details of such accolades are placed at

Annexure - `D`.

28. DIRECTORS` RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, with respect to Directors` Responsibility Statement, it is hereby confirmed that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2015 and of the profit of the Company for the year ended on that date;

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

(iv) The Directors have prepared the annual accounts of the Company on a `going concern` basis;

(v) The Directors have laid down internal financial controls which are being followed by the company and that such internal financial controls are adequate and are operating effectively; and

(vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating.

29. CORPORATE GOVERNANCE

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by various stakeholders. The practices emanate from the need to position multi-layered checks and balances at various levels to ensure transparency of its operations in the decision making process. In terms of Clause 49 of the Listing Agreement, a report on Corporate Governance for the year ended March 31st March, 2015, supported by a certificate from the Company`s Statutory Auditors confirming compliance of conditions, forms part of this Report.

ONGC has implemented the mandatory Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance to the maximum extent possible.

In terms of section 204(1) of the Companies Act, 2013, the Company has engaged M/s P P Agrawal & Co., Company Secretaries in whole-time practice as Secretarial Auditors for conducting Secretarial Compliance Audit for the financial year ended 31st March, 2015. Their report forms part of this Annual Report.

With regard to the observations of Secretarial Auditors as contained in their report, it is submitted that ONGC being a Government company, all directors on the Board of the company are appointed by Government of India. The matter relating to appointment of requisite numbers of Independent Directors has already been taken up with the Government.

The Company has formulated and uploaded the following policies/codes on its website in line with the Companies Act, 2013 and Listing Agreement:

(a) Code of Conduct for Board Members and Senior Management Personnel

(b) Related Party Transactions Policy & Procedures, 2014

(c) Material Subsidiary Policy

(d) The Code of Internal Procedures and Conduct for prohibition of insider trading in dealing with the securities of ONGC

In line with global practices, your Company has made available all information, required by investors, on the Company`s corporate website www.ongcindia.com Apart from the mandatory measures required to be implemented as a part of Corporate Governance, ONGC has gone the extra mile in this regard for the benefit of its stakeholders: i. Whistle Blower Policy / Vigil Mechanism: A total of 35 Protected Disclosures till 31.03.2015 have been processed through the Whistle Blower mechanism of ONGC which was implemented from December 01, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is applicable to all employees of the Company and has been uploaded on the intranet of the Company.

In addition, the Company has a full-fledged Vigilance Department, which is headed by Chief Vigilance Officer who holds the rank of a Functional Director of the Company. With a view to maintain his independence, the CVO reports to the Chief Vigilance Commissioner of the Government of India.

ii. Enterprise-wide Risk Management (ERM) framework:

In line with the requirements of Clause 49 VI of the Listing Agreement, your Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM) Policy throughout the organization. The Audit & Ethics Committee periodically reviews the risk assessment and minimization process in ONGC.

The Risk Management policy of your Company is as follows:

"ONGC shall identify the possible risks associated with its business and commits itself to put in place a Risk Management Framework to address the risk involved on an ongoing basis to ensure achievement of the business objective without any interruptions.

ONGC shall optimize the risks involved by managing their exposure and bringing them in line with the acceptable risk appetite of the Company"

The Board of Directors have constituted a Board Level Risk Management Committee in terms of Clause 49 of the Listing Agreement. The first meeting of the Committee was held on 19.03.2015 wherein the risk appetite and present risk profile, development of risk register to comply with clause 49 of the listing agreement and Companies Act, 2013, Risk Management Policy in ONGC, Risk Reporting structure, Risk Management / mitigation process, Governance Risk Management & Compliance (GRC) module roll-out through SAP, Review of risk register and identification of new & emerging risks, categorization and quantification of risks and role of internal audit in ERM etc were reviewed.

iii. Meeting of Independent Directors: No Meeting of Independent Directors was held during 2014-15.

iv. Certificate of Independence by Independent Directors: The Independent Directors have submitted declaration that they meet the criteria of Independence as per section 149(6) of the Companies Act, 2013.

30. STATUTORY DISCLOSURES

Your Directors have made necessary disclosures, as required under various provisions of the Act and Clause 49 of the Listing Agreement. Extract of Annual Return

As per requirement of section 92(3) of the Companies Act, 2013, the extract of the annual return in form MGT-9 is placed at Annexure-E.

Particulars of Employees

ONGC being a Government Company, the provisions of section 197(12) of the Companies Act, 2013 and relevant Rules shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs. The terms and conditions of the appointment of Functional Directors is decided by the Government of India. The salary and terms and conditions of the appointment of Chief Financial Officer (CFO) and Company Secretary, KMPs of ONGC, is in line with the parameters prescribed by the Government of India. Performance Related Pay of Functional Directors and other employees including CFO & Company Secretary (KMPs) is in line with the guidelines of Department of Public Enterprises, Government of India.

31. ENERGY CONSERVATION

The information required under Section 134(m)of the Companies Act, 2013, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is annexed as Annexure - `F`.

32. AUDIT AND ETHICS COMMITTEE

In compliance with section 177(8) of the Companies Act, 2013, the details regarding Audit & Ethics Committee is provided under Corporate Governance report which forms part of this Annual Report. There has been no instance where the recommendations of the Audit & Ethics Committee have not been accepted by the Board of Directors.

33. AUDITORS

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s Mehra Goel & Co, New Delhi, M/s G D Apte & Co, Mumbai, M/s Lodha and Co, Kolkata, M/s Varma & Varma, Chennai and M/s Khandelwal Jain and Co, Mumbai Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2014-15. The Statutory Auditors have been paid a remuneration of Rs25.01 million (previous year Rs22.92 million) towards audit fee and certification of Corporate Governance Report.The above fees are exclusive of applicable service tax and reimbursement of reasonable travelling and out of pocket expenses actually incurred.

34. Auditors` Report on the Accounts

The Comments of Comptroller & Auditor General of India (C&AG) form part of this Report and are attached as per Annexure-`G`. There is no qualification in the Auditors Report and there are no supplementary comments by C&AG under section 143(6)(b) of the Companies Act, 2013 on the Financial Statements of the Company. Notes to the Accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further comments. You would be pleased to know that your Company has received Nil comments from C&AG and Statutory Auditors for the year 2014-15. This is the ninth year in a row that the organization has received Nil comments.

35. COST AUDIT

Six firms of Cost Accountants were appointed as Cost Auditors for auditing the cost accounts of your Company for the year ended 31st March, 2015 by the Board of Directors. The Cost Audit Report for the year 2013-2014 has been filed under XBRL mode on 25.09.2014 which was well within the due date of filing (i.e.30.09.2014).

36. DIRECTORS POLICY ON DIRECTORS` APPOINTMENT ETC.

ONGC being a Government Company, the provisions of section 134(3)(e) of the Companies Act, 2013 shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs. PERFORMANCE EVALUATION ONGC being a Government Company, the provisions of section 134(3)(p) of the Companies Act, 2013 shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs.

APPOINTMENTS / CESSATION ETC

Since the 21st Annual General Meeting held on

19.09.2014, Shri P Uma Shankar, Shri S. Ravi and Shri R.K. Singh (Independent Directors) vacated their office on 19.09.2014 (FN) in terms of Section 161 of the Companies Act, 2013. The tenure of Prof. Samir Kumar Barua and Shri Om Prakash Bhatt (Independent Directors) concluded on 13.12.2014.

On being appointed as Managing Director of ONGC Videsh Ltd, Shri N K Verma relinquished the charge of Director (Exploration), ONGC on 27.08.2014. Shri U.P Singh, Additional Secretary (Exploration), Ministry of Petroleum & Natural Gas, joined the Board as Government nominee Director on 16.10.2014 in place of Shri Aramane Giridhar. Shri A.K. Diwivedi took over as Director (Exploration) on 16.03.2015.Shri A. K. Banerjee, relinquished the charge of the post of Director (Finance) on attaining the age of retirement on 30.04.2015. Ms. Atreyee Das was appointed as Government Nominee Director on 14.05.2015. On being appointed as Secretary, Department of School Education and Literacy, Dr. S.C. Khuntia, Special Secratary, MoP&NG and Government nominee resigned from the Directorship of ONGC on

26.06.2015. Shri Ashok Varma, Director (Onshore) relinquished the charge of Director (Onshore) on 31.07.2015 on attaining the age of superannuation and Shri V P Mahawar, who has been appointed as Director (Onshore) by Ministry of Petroleum & Natural Gas, Government of India, took over charge on 01.08.2015. The Board places on record its deep appreciation for the excellent contributions made by Shri IRs Uma Shankar, Shri S. Ravi, Shri R.K. Singh, Prof. Samir Kumar Barua, Shri Om Prakash Bhatt, Shri N. K. Verma, Shri Aramane Giridhar, Shri A. K. Banerjee, Dr. S.C. Khuntia and Shri Ashok Varma during their tenure.

The strength of the Board of Directors of ONGC as on 1st August, 2015 is 9, comprising 6 Executive Directors (Functional Directors including CMD) and 3 NonExecutive Directors i.e. two Government nominees and one Independent Director. Ministry of Petroleum & Natural Gas has been requested to appoint requisite number of independent Directors to comply with the provisions of Companies Act, 2013 and Listing Agreement. A total of 13 meetings of the Board of Directors of ONGC were held during the financial year 2014-15.

Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of The Companies (Accounts) Rules, 2014:-

Shri A. K. Srinivasan was appointed as Chief Financial Officer w.e.f.06.05.2015 and as Key Managerial Personnel w.e.f. 28.05.2015.

Shri N. K. Sinha, Company Secretary superannuated on 30.06.2015 on attaining the age of retirement. Shri V. N. Murthy took over as Company Secretary on 01.07.2015.

37. Acknowledgement

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

Your Directors thank all share-owners, business partners and members of the ONGC Family for their faith, trust and confidence reposed in ONGC.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

For and on behalf of the Board of Directors

Place : New Delhi (Dinesh Kumar Sarraf)
Date : 1 August, 2015 Chairman & Managing Director

Annexure A Statement of Reserve Recognition Accounting

Standardised measure of Discounted Future Net Cash Flows relating to Proved Oil and Gas Reserve quantities as on 31st March, 2015.

(Rs in million)

Particulars

Gross Value as at

Present value (Discounted at 10%) as at

31st March, 2015 31st March, 2014 31st March, 2015 31st March, 2014
REVENUES
OIL 8,113,662.86 7,734,063.16 4,114,068.01 3,910,315.59
GAS 2,981,806.99 2,873,072.70 1,683,557.09 1,542,824.81
Total Revenues 11,095,469.85 10,607,135.86 5,797,625.10 5,453,140.40
COSTS
Operating, Selling & General 5,833,860.17 5,939,970.51 3,019,204.07 3,005,596.27
Corporate Tax 1,284,320.22 1,096,766.14 733,915.96 629,125.12
Sub Total 7,118,180.39 7,036,736.65 3,753,120.03 3,634,721.39
Evaluated Cost of Acquisition of Assets and Development
a) Assets 300,740.03 276,898.40 132,843.03 115,933.69
b) Development * 898,516.03 831,831.75 340,752.48 255,798.00
Sub Total 1,199,256.06 1,108,730.15 473,595.51 371,731.69
Total Cost 8,317,436.45 8,145,466.80 4,226,715.54 4,006,453.08
Net future earnings from Proved Reserves 2,778,033.40 2,461,669.06 1,570,909.56 1,446,687.32

* Includes Abandonment Cost

Notes

1) The Revenues on account of crude oil & gas have been worked out on the basis of average price (net of profit Petroleum) for the year 2014-15. The average price for crude oil is net of Subsidy Discount.

2) Expenditure on Development, Acquisition of capital assets, Abandonment costs and Operating Expenditure have been considered at current costs i.e as on on 31.03.2015. Taxes and Levies have been considered at prevailing rates as on 31.03.2015.

3) The reserves have been estimated by ONGC`s Reserve Estimates Committee following the standard international reservoir engineering practices.

4) Only Proved Reserves of ONGC share have been considered. Probable or Possible reserves have not been considered.

5) Both revenues and costs have been discounted to present value using 10% discounting factor. The Net future earnings, therefore, represent the net expected future cash inflows from production of recoverable reserves of crude oil and gas.

6) However, neither the estimated net reserves nor the related present value should be taken as a forecast of future cash flows or value of these reserves because (a) future estimated production schedules used in the valuation process are subject to change, (b) up-gradation of Probable and Possible reserves would significantly affect the gross and net present value of the expected future cash inflows, (c) future crude oil and natural gas prices are subject to change and (d) future expenditure on production (operating), development, acquisition cost of capital assets, abandonment costs and rates of taxes and levies, which may be at variance from those assumed herein.

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions underthird proviso thereto

SI. no.

(a) Name (s) of the related party and nature of relationship

(b) Nature of contracts/arrangements/ transactions (c) Duration of the contracts/ arrangements/ transactions

(d) Salient terms of the contracts or arrangements or transaction including the value, if any

(e) Date (s) of approval by the Board, if any: (f) Amount paid as advances, if any (g) Amount paid as advances, if any: (h) Date on which the special resolution was passed in general meeting as required under first proviso to section 188
Name Relationship Salient terms Transaction value (Rs. in million)
NIL

2. Details of material contracts or arrangement or transactions at arm`s length basis

SI. (a) Name (s) of the related party and nature of relationship (b) Nature of contracts/arrangements/ transactions (c) Duration of the contracts/ arrangements/ transactions

(d) Salient terms of the contracts or

(e) Date (s) of approval by the Board, if any:

(f) Amount paid as advances, if any

no. Name Relationship Salient terms Transaction value (Rs. in million)
1 ONGC Tripura Power Co. Limited Joint venture Entities Sale of Gas for FY 14-15 As per Gas price fixed by govt 3,247.91
2 ONGC Teri Biotech Limited Joint venture Entities Hiring of Bioremidail serves for FY 14-15 Tender basis

244.72

3 Dahej SEZ Ltd Joint venture Entities Lease rent for FY 14-15 Market rate 8.60
4 Dahej SEZ Ltd Joint venture Entities Lease land for FY 14-15 Market rate 10.44
5 Mangalore SEZ Limited Joint venture Entities Travel exp of ONGC emplyee for FY 14-15 Actual 0.39
6 ONGC Tripura Power Co. Limited Joint venture Entities Travel exp of ONGC emplyee for FY 14-15 Actual 0.17
7 ONGC Petro-additions Limited Joint venture Entities Manpower deputation/other Misc. services provided to OPaL for FY 14-15 Actual 125.94
8 ONGC Teri Biotech Limited Joint venture Entities Lab testing facility provided to 0TB L for FY 14-15 Market rate 0.15
9 Petronet LNG Limited Joint venture Entities ONGC nominated director Sitting Fee for FY 14-15 Actual

0.05

10 ONGC Mangalore Petrochemicals Limited Subsidiary Manpower deputation to OMPL for FY 14-15 Actual 6.44
11 ONGC Tripura Power Co. Limited Joint venture Entities Advance & Administative suport for COD of unit-2 for FY 14-15 Actual 125.82
12 Petronet LNG Limited Joint venture Entities Dividend Income for FY 14-15 Actual 187.50
13 ONGC Petro-additions Limited Joint venture Entities Fresh advace and Right share to OPaL for FY 14-15 7,505.52
14 ONGC Tripura Power Co. Limited Joint venture Entities Fresh advance and Right share to OTPC for FY 14-15 4,645.36
15 ONGC Petro-additions Limited Joint venture Entities Refund of old advance of equity share by OPaL for FY 14-15 6,709.24
16 ONGC Tripura Power Co. Limited Joint venture Entities Refund of old advance of equity share by OTPC for FY 14-15 2,925.10
17 MRPL Subsidiary Sale of crude oil for FY 14-15 Crude oil at market rate 38,486.88
18 MRPL Subsidiary Lease of Office space at Mumbai for FY 14-15 Market rate 4.60
19 MRPL Subsidiary Manpower deputaion for FY 14-15 As per actual 14.65
20 MRPL Subsidiary Purchase of retail product for OVL for FY 14-15 dealer market rate 44.11
21 MRPL Subsidiary Purchase of POL for internal use for FY 14-15 market rate 9.41
22 MRPL Subsidiary Interest Income for FY 14-15 4,763.57
23 Pawan Hans Ltd (PHL) Associates Hiring of helicopter services for FY 14-15 564.89
24 Pawan Hans Ltd (PHL) Associates Hiring of Maintenance services from PHL for own helicopter for FY 14-15 6.63
25 Pawan Hans Ltd (PHL) Associates Deduction of Ld on hiring contract for FY 14-15 actual 4.69
26 Pawan Hans Ltd (PHL) Associates Dividend income for FY 14-15 actual 37.80
27 Pawan Hans Ltd (PHL) Associates Interest income for FY 14-15 actual 64.51
28 ONGC Petro-additions Limited Joint venture Entities Parents undertaking to Bank on behalf of JVE for FY 14-15 actual 73,926.47
29 ONGC Tripura Power Co. Limited Joint venture Entities Parents undertaking to Bank on behalf of JVE for FY 14-15 actual

15,029.32

30 ONGC Mangalore Petrochemicals Limited Joint venture Entities Parents undertaking to Bank on behalf of JVE for FY 14-15 actual 25,080.00
31 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of National oi company of Libya effective from 05.03.2007 Guarantee amount 3821.04 million) 1,566.00 163™ Board meeting
32 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of IDBI Trusteeship services Limited effective from 31.12.2009 Guarantee amount 4000.00 million) 3,773.58 182"" Board Meeting
33 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of Hess Corporation for Azeri and Chiraf Fields effective from 27.03.2013 Guarantee amount 50770.63 million) 50,770.63 237" Board Meeting
34 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of Anadarko effective from 08.02.2014 Guarantee amount 111374.86 million) 111,374.86 249" Board Meeting
35 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favor of Petrobangla effective from 27.03.2014 Guarantee amount 1202.69 million) 1,202.69 254,B Board Meeting
36 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of Petrobangla effective from 27.03.2014 Guarantee amount (Rs2029.54 million) 2,029.54 254,B Board Meeting
37 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of Citivic Nominees Ltd (Mozambiq) effective from 15.07.2014 Guarantee amount 47300.55 million) 47,300.55 249" Board Meeting
38 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of Citivic Nominees Ltd (Mozambiq) effective from 15.07.2014 Guarantee amount 47436.17 million) 47,436.17 249" Board Meeting
39 ONGC Videsh Ltd Subsidiary Guarantees for financial obligation in favour of Citivic Nominees Ltd (Mozambiq) effective from 15.07.2014 Guarantee amount 36217.33 million) 36,217.33 249tB Board Meeting
40 ONGC Videsh Ltd Subsidiary Performance Guarantees under the contract in respect of Sakhalin Project in favour of Exxon Neftgas Ltd., Rosneft-S, SMNG-S and RN-Astra effective from 23.06.2001 79" Board Meeting
41 ONGC Videsh Ltd Subsidiary Performance Guarantees under the contract in respect of PI in Azeri and Chirag Fields and Gunashli Field in favour of State Oil Company of Azerbaijan Republic effective from 28.03.2013 237tB Board Meeting
42 ONGC Videsh Ltd Subsidiary Performance Guarantees under the contract in respect of Block SS-04, Bangladesh in favour of Petrobanala effective from 27.03.2014 254" Board Meeting
43 ONGC Videsh Ltd Subsidiary Performance Guarantees under the contract in respect of Block SS-09, Bangladesh in favour of Petrobangla effective from 27.03.2014 254tB Board Meeting
44 MRPL Subsidiary Guarantees executed in favor of Saudi Aramco effective from 01.09.2014 USD 225 Million 7,351.35 258tB Board Meeting
45 MRPL Subsidiary Guarantees executed in favor of Sociedade Nacional De Aggola valid upto 31.03.2016 USD 250 Million 0246" Board Meeting

Report on CSR Activities

ONGC conducts its business as a responsible corporate citizen and believes in holistic approach towards all issues pertaining to People, Planet and Profit for a sustainable development and better future. ONGC is committed to achieve inclusive growth of the marginalized and deprived sections of the society through its various CSR initiatives across the country.

ONGC has devised its Corporate Social Responsibility (CSR) and Sustainability Policy in consonance with the CSR Policy framework enshrined in Section 135 of the Companies Act, 2013 (Act), Companies (CSR Policy) Rules, 2014 (Rules) notified by Ministry of Corporate Affairs, Government of India and Guidelines on Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises issued by Department of Public Enterprises, Government of India (DPE Guidelines, 2014) which are effective from 1st April 2014.

This policy applies to all CSR projects and programmes undertaken by ONGC as per interpretation of activities listed in Schedule-VII of the Act, within the geographical limits of India, particularly towards the benefits of marginalized, disadvantaged, poor and deprived sections of the society and the environment.

As per the policy, projects and programmes are identified and budgets allocated for them through a process that includes identification of suitable implementation agencies, need assessment (where ever required) and clear roadmap of desired outcomes. The CSR projects, programmes and initiatives to be undertaken, must fall within the purview of the Schedule - VII of the Act (as modified from time to time).

The CSR projects entail Need Based Assessment or Baseline survey to determine the feasibility of the project. The objectives in identifiying sectors and geographies are quite specific and tangible. A detailed project report of the identified project is devised with determining of time lines with clear identification of the goals. The annual budget is to be allocated for activities in all focused areas ensuring adherence to Schedule VII of the Act.

The project approach mandates clearly identifying the beneficiaries. Post approval, agreements are being signed with the implementing agency prior to implementation of the project. During the implementation phase, the project is periodically reviewed and monitored. Evaluation & Assessment, preferably both concurrent and final (wherever possible, by a competent third party) are carried out to ensure the project achieves the desired goals.

The focus areas and budget allocation for CSR projects, programmes and activities are made by the Committee on CSR and Sustainable Development in the beginning of every financial year.

20% of the total budget are allocated in each of the five sectors as detailed below:

• Promoting health care including preventative health care and sanitation and making available safe drinking water.

• Promoting education including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects

• Ensuring environmental sustainability, ecological balance, protections of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water

• Rural development projects

• Miscellaneous - Setting up homes and hostels for women and orphans; setting up old age homes, day care centres and other such facilities for senior citizens; Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts; Training to promote rural sports, regionally recognised sports, Paralympics sports and Olympic sports; Other areas mentioned in Schedule - VII

The links to ONGC CSR and SD activities and a host of policies directed towards the betterment of disadvantaged, vulnerable and marginalised sections of stakeholders have been hosted on ONGC website www.ongcindia.com.

The ONGC CSR committee presently comprises Shri D. K. Sarraf, CMD, ONGC and Shri D. D. Misra, Director (HR), ONGC, under the chairmanship of Shri K. N. Murthy, Independent Director.

However, as per the approved CSR policy two more members i.e. Director (Finance), ONGC and an additional Independent Director will be members of the Committee. Presently these two posts are vacant.

ONGC`s average net profit under Section 135 of the Act in the last three financial years was Rs33,030 crore wherein the profit of the company as per Section 198 was Rs34,716.61 crore, ^31,935.27 crore and Rs32,440.25 crore in financial years 2011-12, 201213 and 2013-14 respectively.

The CSR expenditure for FY 2014-15 was pegged at Rs660.61crore, 2% of the average profits (u/s 135) for the last three years. However, ONGC registered an expenditure of Rs495.23 crore during FY 2014-15. The reasons for under-spending have been detailed in the Board`s report. The major CSR initiatives taken up during the financial year 2014-15 have also been detailed in the Board`s report. The manner in which the amount was spent during 2014-15 is detailed in the Enclosure.

Responsibility Statement

This is to certify that the implementation and monitoring of the CSR Policy in respect of all projects/programs covered under CSR initiatives for the year 2014-15, is in compliance with CSR objectives and Policy of the company

Sd/- Sd/-
(D. K. Sarraf) (K. N. Murthy)
CMD Independent Director
Member, CSR Committee Chairman, CSR Committee

Enclosure to Annexure - C

SI. No. CSR Project/Activity Sector in which the Project is covered Project or Program

1. Local area or other 2.Specify the State and District where project or program was undertaken

Amount outlay (budget) project or program wise in Rs Croresa Amount spent on the project or program

Sub Heads

(1) Direct expenditure on projects or programs

(2) Overheads Amounting

Cumulative expenditure upto the reporting period

Amount in Rs

Amount spent: Direct or through Implementing agency

Amount in Rs

1 Health care Various programs/projects have been taken up as CSR initiative during Financial year 2014-15 on PAN India Basis in and around ONGC`s operational areas and in backward districts of various states 132.12 35,77,58,278 35,77,58,278 35,77,58,278
Initiatives for physically and mentally challenged 3,36,72,170 3,36,72,170 3,36,72,170
2 Education including Vocational courses 132.12 46,07,70,250 46,07,70,250 46,07,70,250
Entrepreneurship (self help and livelihood) 1,38,56,873 1,38,56,873 1,38,56,873
Women`s empowerment and girl child development 83,23,966 83,23,966 83,23,966
3 Environment and ecological conservation 132.12 2,87,41,84,398 2,87,41,84,398 2,87,41,84,398
Water management including ground water recharge 1,22,53,307 1,22,53,307 1,22,53,307
4 Infrastructural support near ONGC operational area 132.12 93,86,76,949 93,86,76,949 93,86,76,949
5 Promotion of artisans, craftsmen, musicians 132.12 2,08,80,463 2,08,80,463 2,08,80,463
Promoting sports and sports persons 1,22,10,264 1,22,10,264 1,22,10,264
Protection of heritage sites 1,57,00,000 1,57,00,000 1,57,00,000
Support for cultural/sports events, etc. 20,40,00,923 20,40,00,923 20,40,00,923
Total 660.61 4,95,22,87,841 4,95,22,87,841 4,95,22,87,841

Annexure -D ONGC: Awards & Recognitions 2014-15

Corporate Awards

1) ONGC moves three places up on Forbes Global 2000 list (2015) among oil & gas industry

Forbes, a leading international business journal, has ranked ONGC at 183rd among 2000 top global companies in its latest list published in May, 2015. In the global oil and gas operation industry, ONGC has moved up three places to 18th.

2) ONGC is the top energy company in India as per Platts 250 rankings

ONGC has been ranked as the Top Energy Company in India, in the coveted Platt`s Top 250 Global Energy Company Rankings 2014 (November, 2014). ONGC has been ranked at 21st place among the global energy majors and 3rd among Exploration & Production Company (E&P).

3) ONGC among world`s greenest companies

ONGC has been ranked 217th in the Newsweek Green Rankings 2014; the world`s most recognized assessments of corporate environmental performance. ONGC made a quantum jump from previous ranking of 386 (Green ranking 2012). The company now stands third amongst only seven Indian companies named in the prestigious list

4) ONGC climbs up to second position on the BT-500 India`s Most Valuable Companies List

ONGC has been placed at the number 2 position in the BT -500 India`s Most Valuable Companies list, 2014. ONGC has gained two places over the last year`s rankings to take up its highest ever position on the BT 500 list since these rankings were institutionalized in 1992.

5) ONGC bags Dun & Bradstreet Corporate Excellence Award - 2014

ONGC received the prestigious Dun & Bradstreet Corporate Excellence Award, for excellence in the Oil and Gas Production sector. In all there were 46 sectors which were recognized for their excellence and these were chosen among the top 500 companies of India, by the primary yardstick of their contribution to India`s GDP

6) ONGC Academy conferred with Golden Peacock National Training Award - 2014

ONGC Academy was adjudged the Winner of Golden Peacock National Training Award 2014, by the Institute of Directors. The award was presented on 23rd May, 2014. The award was conferred in recognition of the excellent training practices at each and every level, right from entry level for equipping fresh graduates with the requisite skillsets to leadership development programmes for creating leaders of tomorrow.

7) ONGC ranked among top Indian brands

ONGC has been placed 14th among the best Indian brands in the recent Economic Times- Interbrand `Best Indian Brands` study, 2014. To its credit, ONGC has maintained its position as a top Indian brand despite the company not being in retail business. Most of the other brands listed above ONGC have a direct consumer connection.

8) ONGC awarded the "Most Valuable PSU" by India Today

ONGC was recognized as the "Most Valuable PSU" in the Maharatna category in the India Today Group-MDRA Survey of India`s best PSUs, 2014. It was the first ever survey conducted by the India Today Group, in association with Marketing and Development Research Associates (MDRA).

9) ONGC receives highest sports award `Rashtriya Khel Protsahan Puraskar`

President of India presented Rashtriya Khel Protsahan Puraskar to ONGC in the Rashtrapati Bhavan on the occasion of National Sports day on 29th August, 2014. ONGC received the award in the category of `Employment of Sports persons and sports welfare measures`.

10) ONGC adjudged Exploration & Production Company of the year - PetroFed Awards

ONGC was adjudged as Exploration & Production -Company of the year at the PetroFed Oil & Gas Industry Awards 2013, organized on 8th September, 2014.

11) ONGC received Governance Now PSE Awards 2014

ONGC was conferred awards in two categories- `Best Strategic Performance` and `Innovation in Business` at the Governance Now PSU Awards 2014 in the Maharatna category. ONGC`s fully owned subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) was also recognized for best `Growth and Competencies` in the Mini Ratna Class I category.

12) KDMIPE receives two Global Sustainability Awards

KDMIPE secured two major Energy and Environment Foundation Awards during the 5th World Renewable Energy Technology Congress and Expo 2014, organized by Energy and Environment Foundation. The Institute got `Global Sustainability Award 2014- GOLD`, for outstanding achievements in Rainwater Harvesting and Sustainability Management; it also secured `Global Sustainability Award 2014 - SILVER` for outstanding achievements in Management of Energy Efficiency and Sustainability.

13) ONGC safety practices recognized at OISD Awards

ONGC secured five awards at the Oil Industry Safety Directory (OISD) Awards ceremony for 2012-13, held at Delhi on 3rd December, 2014.

• ONGC`s Tripura Asset bagged the award for `Best Onshore Asset`;

• ONGC`s Uran Plant bagged the award for `Best Processing plant`.

• ONGC was also awarded as Best Organisation for its near-miss reporting in the category `Exploration & Production Operations`.

• ONGCian Mr. Mangaldas Nikkaram Bhatti was recognized for significant contribution towards safety in individual capacity.

14) ONGC conferred upon ` Outstanding Accomplishment` awards at CII-ITC Sustainability Awards

ONGC was bestowed with `Outstanding Achievement` awards under Corporate Excellence at CII-ITC Sustainability Awards 2014 on 19th December, 2014.

15) World Marketing Congress honors ONGC with `Master Brand Award`

The World Marketing Congress has conferred the prestigious Master Brand award to ONGC on 14th November, 2014. The title of Master Brand is conferred upon those brands that appeal to a large set of consumers while constantly keeping in mind a consumer centric approach.

16) ONGC receives Golden Peacock Award for excellence in CSR

ONGC received the prestigious `Golden Peacock Award for Corporate Social Responsibility` for 2014. ONGC has been declared as the Winner in the Oil & Gas Category.

Individual Awards/Accolades

1) Shri K S Jamestin, ex- Director HR felicitated with `Lifetime Achievement Award for Excellence in HR

Mr. K S Jamestin, ex- Director (HR) received the `Lifetime Achievement Award for Excellence in HR` at the Lokmat - HR Leadership Awards, 2014 held in Mumbai on 28th June, 2014.

2) Shri K S Jamestin, ex- Director HR conferred with `Unitop Award` by IIMM, Mumbai

The Mumbai Chapter of the Indian Institute of Materials Management (IIMM) conferred upon Mr K S Jamestin, ex-Director (HR) the prestigious Unitop Award for Enduring Contribution to Excellence in Supply Management at a function in Mumbai on 28th July, 2014. The Award was conferred in absentia at a function which was graced by top procurement professionals of diverse industries.

3) ONGCian decorated by Prime Minister as National Brand Ambassador

K Kanagaraj of ONGC Cauvery Asset has been honoured as National Brand Ambassador of Vocational Training by Hon`ble Prime Minister NarendraModi.The ONGCian received this honour at a national function organised by Directorate General of Employment & Training (DGE&T) under Ministry of Labour and Employment, Government of India on 16th October, 2014 at New Delhi.

4) ONGCian honored at Prime Minister`s TA Day Parade

Mr. R.S. Meena, SE (Civil), posted in Mehsana, has been awarded Territorial Army (TA) Medal at Prime Minister`s TA Day Parade 2014.

5) National Honours for ONGC Fire Services personnel

The President of India has awarded Fire Service Medal for Meritorious Service to three personnel of ONGC Fire Service - Mr Amitabh Singh, DGM (FS), B&S Asset, Mr S C Gaur, Fire Officer Mehsana Asset and Mr Kailash Mishra, Chief Fireman, Mehsana Asset, on 26th January, 2015.

Annexure - E

Form No. MGT-9

EXTRACT OF ANNUAL RETURN

as on the financial year ended on 31st March, 2015

(Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12 (1) of the Companies (Management and Administration) Rules, 2014

I. REGISTRATION AND OTHER DETAILS:

i) CIN:- L74899DL1993GOI054155

ii) Registration Date: 23rd Day of June, 1993

iii) Name of the Company: Oil and Natural Gas Corporation Limited

iv) Category/Sub-Category of the Company: Government Company

v) Address of the Registered office and contact details: Jeevan Bharati Building Tower-II, New Delhi-110001. Ph: 23310156, Fax: 23316413

vi) Whether listed company Yes/No: Yes

vii) Name, Address and Contact details of Registrar and Transfer Agent,ifany: M/s Karvy Computershare Pvt. Ltd. Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad-500 032 Ph: 04067161562 M: +91 040-9177401094 Fax: 040 - 23001153 mohsin.mohd@karvy.com, karvy computershare.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

SI. No. Name and Description of main products / services NIC Code of the Product / service % total turnover of the company
1 Crude Oil 27090000 65.17%
2 Natural Gas 27112100 22.75%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATES COMPANIES

SI. No. NAME AND ADDRESS OF THE COMPANY CIN /GLN HOLDING/ SUBSIDIARY/ ASSOCIATE % of Shares Held Applicable Section
1. ONGC Videsh Limited 4th Floor, Kailash Building, 26, Kasturba Gandhi Marg, New Delhi-110001 U74899DL1965GOI004343 Subsidiary 100 2(87)
2. Mangalore Refinery and Petrochemicals Limited Kuthethoor P O., Via Katipalla, Mangalore-575030 L85110KA1988GOI008959 Subsidiary 71.63 2(87)
3. ONGC Mangalore Petrochemicals Limited Mangalore Special Economic Zone Permude, Mangalore - 574 509 U40107KA2006PLC041258 Subsidiary 48.99 2(87)
4 ONGC Petro additions Ltd. 1st floor, Omkara Building, Sai Chowkri, Manjalpur, Vadodara-390011

U23209GJ2006PLC060282

Joint Venture

49.36 2(6)
5 ONGC Tripura Power Co. Ltd. ONGC Tripura Asset, Badarghat Complex, Agartala, Tripura- 799014

U40101TR2004PLC007544

Joint Venture

49.52 2(6)
6 Mangalore SEZ Limited No. 16, Pranava Park, 3rd Floor, Infantry Road, Bangalore-560001

U45209KA2006PLC038590

Joint Venture

26 2(6)
7 Petronet MHB Limited No. 332, Darus Salam Building, First Floor, Queen`s Road, Banglore-560052

U8511OKA1998PLC024020

Joint Venture

28.77 2(6)
8 Dahej SEZ Limited (DSL) Block No.14, 3rd Floor, Udyog Bhavan, Sector-11 Gandhinagar- 382017, Gujrat

U45209GJ2004PLC044779

Joint Venture

50 2(6)
9 ONGC TERI Biotech Ltd TERI Complex,Darbari Seth Block, IHC Complex, Lodhi Road, New Delhi - 110003

U74120DL2007PLC161117

Joint Venture

49.98 2(6)
10 Petronet LNG Limited World Trade Centre, 1st Floor, Babar Road, BarakhambaLane, New Delhi-110001

L74899DL1998PLC093073

Joint Venture

12.50 2(6)
11 Pawanhans Limited Safdarjung Airport, New Delhi-110003 U62200DL1985GOI022233 Associate 49 2(6)

IV. SHARE HOLDING PATTERN (Equity Share Capital Break up as percentage of Total Equity) i) Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

Demat Physical Total % of Total Shares Demat Physical Total % of Total Shares %

Change during the year

A. Promoters
(1) Indian
a) Individual/ HUF 0 0 0 0.00 0 0 0 0.00 0.00
b) Central Govt. 5897760333 0 5897760333 68.94 5897760333 0 5897760333 68.94 0.00
c) State Govt(s) 0 0 0 0.00 0 0 0 0.00 0.00
d) Bodies Corp. 0 0 0 0.00 0 0 0 0.00 0.00
e) Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00
f) Any Other... 0 0 0 0.00 0 0 0 0.00 0.00
Sub-total 5897760333 0 5897760333 68.94 5897760333 0 5897760333 68.94 0.00
(A)(1):-
(2) Foreign
a) NRIs-

Individuals

0 0 0 0.00 0 0 0 0.00 0.00
b) Other-Individuals 0 0 0 0.00 0 0 0 0.00 0.00
c) Bodies Corp. 0 0 0 0.00 0 0 0 0.00 0.00
d) Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00
e) Any Other. 0 0 0 0.00 0 0 0 0.00 0.00
Sub-total

(A)(2):-

0 0 0 0.00 0 0 0 0.00 0.00

 

Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Change during
Demat Physical Total % of Total Shares Demat Physical Total % of Total Shares the year
Total Shareholding of Promoter (A) = A)(1)+(A)(2) 5897760333 0 5897760333 68.94 5897760333 0 5897760333 68.94 0.00
B. Public Shareholding
1. Institutions
a) Mutual Funds 109506969 6300 109513269 1.28 78851027 6300 78857327 0.92 0.36
b) Banks/FI 118893301 60 118893361 1.39 102832805 60 102832865 1.20 0.19
c) Central Govt 0 0 0 0.00 0 0 0 0.00 0.00
d) State Govt(s) 0 0 0 0.00 0 0 0 0.00 0.00
e) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00
f) Insurance Companies 700903533 5700 700909233 8.19 709625175 5700 709630875 8.29 0.1
g) FIIs 569897010 0 569897010 6.66 614286761 0 614286761 7.18 0.52
h) Foreign Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00
i) Others (specify) 0 0 0 0.00 0 0 0 0.00 0.00
Sub-total (B)(1):- 1499200813 12060 1499212873 17.52 1505595768 12060 1505607828 17.59 0.07

 

Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Change during
Demat Physical Total % of Total Shares Demat Physical Total % of Total Shares the year
2. Non-Institutions
a) Bodies Corp. i) Indian ii) Overseas 1012048619 9889 1012058508 11.83 995168127 9889 995178016 11.63 0.2
b) Individuals i) Individual Shareholders holding nominal share capital uptoRs. 1 lakh ii) Individual shareholders holding nominal share capital in excess of Rs. 1 lakh 121392038 4950075 6538805 0 127930843 4950075 1.49 0.06 131937061 6009935 6154696 0 138091757 6009935 1.61 0.07 0.12 0.01
c)Others(specify)
NON RESIDENT INDIANS 3139708 38594 3178302 0.04 4065652 38594 4104246 0.05 0.01
CLEARING MEMBERS 6692525 0 6692525 0.08 3153654 0 3153654 0.04 0.04
TRUSTS 3705165 0 3705165 0.04 5581811 0 5581811 0.07 0.03
FOREIGN NATIONALS 1396 0 1396 0.00 2540 0 2540 0.00 0.00
Sub-total (B)(2):- 1151929626 6587288 1158516914 13.54 1145918780 6203179 1152121959 13.47 0.07
Total Public Shareholding (B)=(B)(1)+(B)(2) 2651130439 6599348 2657729787 31.06 2651514548 6215239 2657729787 31.06 0.00
C. Shares held by Custodian for GDRs&ADRs 0 0 0 0.00 0 0 0 0.00 0.00
Grand Total (A+B+C) 8548890772 6599348 8555490120 100.00 8549274881 6215239 8555490120 100.00 0.00

ii) Shareholding of Promoters

SI No. Share holder`s name

Shareholding at the year beginning of

Shareholding at the end of the year

No. of Shares % of total Shares of the Company % of Shares Pledged/ encumberd to total shares No. of Shares % of total Shares of the Company % of Shares Pledged/ encumberd to total shares % change in shareholding during the year
1 President of India

5897760333

68.94%

-

5897760333

68.94%

-

NIL

Total

5897760333

68.94%

-

5897760333

68.94%

-

NIL

iii) Change in Promoters` Shareholding (please specify, if there is no change)

SI No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of Shares % of total Shares of the Company No. of Shares % of total Shares of the Company
At the beginning of the year
Date wise Increase/Decrease in Promoters Share holding during the year specifying the reasons for increase/decrease (e.g. allotment/ transfer/ bonus/ sweat equity etc):
At the end of the year

*There is no Change is Promoter`s Shareholding.

iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):(*)

SI No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

For each of the top 10 shareholders No. of Shares % of total Shares of the Company No. of Shares % of total Shares of the Company
At the beginning of the year
Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
At the End of the year (or on the date of separation, if separated during the year)

* Details are placed at Appendix

v) Shareholding of Directors and key Managerial Personnel :

SI No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

1. Shri Dinesh Kumar Sarraf No. of Shares % of total Shares of the Company No. of Shares % of total Shares of the Company
(A) At the beginning of the year 3192 0.000037 - -
(B) Date wise Increase/Decrease in Share holding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/ sweat equity etc): NIL NIL
(C) At the End of the year - - 3192 0.000037
2. Shri Aloke Kumar Banerjee
(A) 3172 0.000037 - -
(B) - - NIL NIL
(C) - - 3172 0.000037
3. Shri Shashi Shankar
(A) 3712 0.000043 - -
(B) - - NIL

NIL

(C) - -

3712

0.000043

4. Shri Narendra Kumar Verma
(A)

NIL

NIL

-

-

(B)

-

-

NIL

NIL

(C)

-

-

NIL

NIL

5. Shri Tapas Kumar Sengupta
(A)

3672

0.000043

-

-

(B)

-

-

NIL

NIL

(C)

-

-

3672

0.000043

6. Shri Jamestin Kizhakkekuttu Scaria
(A)

3600

0.000043

-

-

(B)

-

-

NIL

NIL

(C)

-

-

3600

0.000043

7. Shri Ashok Varma
(A)

NIL

NIL

-

-

(B)

-

-

NIL

NIL

(C)

-

-

NIL

NIL

8. Shri Desh Deepak Misra
(A) 1700 0.000020 - -
(B) - - NIL NIL
(C) - - 1700 0.000020
9. Shri Ajay Kumar Dwivedi
(A) 820 0.000010 - -
(B) - - NIL NIL
(C) - - 820 0.000010
10. Shri Naresh Kumar Sinha
(A)

NIL

NIL

-

-

(B)

-

-

NIL

NIL

(C)

-

-

NIL

NIL

v) INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment

Secured Loans excluding deposits Unsecured Loans Deposits Total indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due

NIL

NIL

NIL

NIL
Total (i+ii+iii)

NIL

NIL

NIL

NIL
Change in Indebtedness during the financial year
• Additions
• Reduction NIL

NIL

NIL

NIL

Net Change

NIL

NIL

NIL

NIL

Indebtedness at the end of the financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due

NIL

NIL

NIL

NIL
Total (i+ii+iii)

NIL

NIL

NIL

NIL

vi) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Director and / or Manager :

Particulars of Remuneration

Name of MD/WTD / Manager

Shri Dinesh Kumar Sarraf Shri A.K. Banerjee Shri K.S. Jamestin Shri N.K. Verma Shri Shashishan ker Shri T.K. Sengupta Shri Ashok Varma Shri D.D. Misra Shri A.K. Dwivedi Total Amount
C&MD

DIR. (FIN)

DIR. (HR)

DIR. (EXPL.)

DIR (T&FS)

DIR (OFF SHORE) DIR (ON SHORE) DIR. (HR) DIR. (EXPL.)
Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 36,96,218 31,33,439 50,50,838 12,73,469 31,29,204 39,31,970 27,65,590 27,72,267 8,55,858 2,66,08,853
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 2,53,225 6,88,093 6,32,011 61,230 6,56,520 7,20,826 1,86,436 4,01,274 44,418 36,44,033
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
Stock Option - - - - - - - - -
Sweat Equity - - - - - - - - -
Commission

-

-

-

-

-

-

-

-

-

- As % of profit

-

-

-

-

-

-

-

-

-

- Others, specify.. - - - - - - - - -
O thers, please specify - - - - - - - - -
O thers-Provision for PRP, gratuity ,leave encashment under AS-15 Contribution to CSSS,PF, EPS , reimbursement of employer paid taxes, reimbursements not included under 17(2) 22,01,659 19,08,949 6,50,280 14,07,070 17,28,754 18,33,980 13,02,055 11,56,847 97,689 1,22,87,282
Total (A) 61,51,102 57,30,482 63,33,129 27,41,770 55,14,478 64,86,776 42,54,080 43,30,388 9,97,965 4,25,40,168
Ceiling as per the Act

Not applicable as section 197 of Companies Act, 2013 shall not apply to Government Companies.

B. Remuneration to other directors:

(Figures in f)

Name of Directors

SI. No. Particulars of Remuneration Shri Arun Ram ananthan Prof Deepak Nayyar Prof. S.K. Barua Shri O.P Bhatt Shri. K.N. Murthy Shri 1Rs Uma Shankar

Shri S. Rav

Shri R.K. Singh Total Amount
1. Independent Directors • Fee for attending board committee meetings

1,80,000

1,20,000

7,20,000

6,60,000

10,20,000

4,80,000

5,20,000

1,00,0000

38,00,000

• Commission

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL
• Others, please specify

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

Total (1) 38,00,000
2 Other Non-Executive Directors • Fee for attending board committee meetings • Commission • Others, please specify
Total (2) NIL
Total (B)=(1+2) 38,00,000
Total Managerial Remuneration
Overall Ceiling as per the Act

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

(Figures in f)

SI. No. Particulars of Remuneration

Key Managerial Personnel

CEO Company Secretary CFO Total
1 Gross salary
(a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961 - 37,18,365 - 37,18,365
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - 2,34,258 - 2,34,258
(c) Profits in lieu of salary under Section 17(3) Income-tax Act, 1961 - - - -
2 Stock Option

-

- - -
3 Sweat Equity -

-

-

-

4 Commission
- As % of profit - - - -
- Others, specify.. - - - -
5 Others-Provision for PRP, Provisions under AS-15,Contribution to CSSS,PF,EPS, reimbursement of employer paid taxes, reimbursements not included under 17(2) 10,44,391 10,44391
Total - 49,97,014 - 49,97,014

vii) PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:

Type Section of the Companies Act Brief Description Details of Penalty/ Punishment/ Compounding fee imposed Authority (RD/NCLT/ NCLT/COURT) Deposits
A. COMPANY
Penalty
Punishment NIL

NIL

NIL

NIL

NIL
Compounding
B. DIRECTORS
Penalty
Punishment NIL

NIL

NIL

NIL

NIL
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment NIL

NIL

NIL

NIL

NIL
Compounding

APPENDIX

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

1. LIFE INSURANCE CORPORATION OF INDIA No. of shares % of total share of the No. of shares % of total share of the
company company
(A) At the beginning of the year 666,702,623 7.79 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
Date Reason
6/13/2014 Sold 495000 - - 666,207,623 7.79
6/20/2014 Sold 866 - - 666,206,757 7.79
7/25/2014 Sold 1112070 - - 665,094,687 7.77
8/1/2014 Sold 20599 - - 665,074,088 7.77
8/8/2014 Sold 1001006 - - 664,073,082 7.76
8/15/2014 Sold 1443291 - - 662,629,791 7.75
8/22/2014 Sold 3787067 - - 658,842,724 7.70
12/19/2014 Purchase 73250 - - 658,915,974 7.70
1/9/2015 Purchase 3044791 - - 661,960,765 7.74
1/16/2015 Purchase 853123 - - 662,813,888 7.75
3/13/2015 Purchase 4855314 - - 667,669,202 7.80
3/20/2015 Purchase 3135077 - - 670,804,279 7.84
3/27/2015 Purchase 4542218 - - 675,346,497 7.90
(C) At the End of the year (or on the date of separation, if separated during the year) - - 677,182,291 7.92

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

2. INDIAN OIL CORPORATION LIMITED No. of shares % of total share of the company No. of shares % of total share of the company
(A) At the beginning of the year 657,923,428 7.70 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc): NIL NIL
(C) At the End of the year (or on the date of separation, if separated during the year) - - 657,923,428 7.70

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

3. GAIL INDIA LIMITED No. of shares % of total share of the company No. of shares % of total share of the company
(A) At the beginning of the year 205,601,068 2.40 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc): NIL NIL
(C) At the End of the year (or on the date of separation, if separated during the year) - - 205,601,068 2.40

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

4. FRANKLIN TEMPLETON INVESTMENT FUNDS No. of shares % of total share of the No. of shares % of total share of the
company company
(A) At the beginning of the year 76,805,580 0.90 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
Date Reason
4/4/2014 Sold 197000 - - 76,608,580 0.90
4/11/2014 Sold 253000 - - 76,355,580 0.90
6/6/2014 Sold 2090157 - - 74,265,423 0.87
6/13/2014 Sold 359843 - - 73,905,580 0.86
6/30/2014 Sold 644200 - - 73,261,380 0.86
7/4/2014 Sold 815739 - - 72,445,641 0.85
7/11/2014 Sold 888061 - - 71,557,580 0.84
2/13/2015 Purchase 1036800 - - 72,594,380 0.85
2/20/2015 Purchase 262300 - - 72,856,680 0.85
2/27/2015 Purchase 336900 - - 73,193,580 0.86
(C) At the End of the year (or on the date of separation, if separated during the year) - - 73,193,580 0.86

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

5. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. No. of shares % of total share of the No. of shares % of total share of the
company company
(A) At the beginning of the year 46,964,274 0.55 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
Date Reason
4/4/2014 Sold 186200 - - 46,778,074 0.55
4/11/2014 Purchase 40421 - - 46,818,495 0.55
4/18/2014 Purchase 11874 - - 46,830,369 0.55
4/25/2014 Purchase 15780 - - 46,846,149 0.55
5/2/2014 Sold 159380 - - 46,686,769 0.55
5/9/2014 Sold 1235873 - - 45,450,896 0.53
5/16/2014 Purchase 55373 - - 45,506,269 0.53
5/23/2014 Purchase 13344 - - 45,519,613 0.53
5/30/2014 Sold 714896 - - 44,804,717 0.52
6/6/2014 Sold 1951949 - - 42,852,768 0.50
6/13/2014 Sold 3916721 - - 38,936,047 0.46
6/20/2014 Sold 1099281

-

- 37,836,766 0.44
6/30/2014 Sold 2535650 - - 35301116 0.41
7/4/2014 Sold 433800 - - 34,867,316 0.41
7/11/2014 Sold 15574 - - 34,851,742 0.41
7/18/2014 Sold 1353353 - - 33,498,389 0.40
7/25/2014 Sold 429799 - - 33,068,590 0.39
8/1/2014 Sold 237342 - - 32,831,248 0.38
8/8/2014 Purchase 48753 - - 32,880,001 0.38
8/15/2014 Purchase 18242 - - 32,898,243 0.38
8/22/2014 Sold 85285 - - 32,812,958 0.38
8/29/2014 Sold 760633 - - 32,052,325 0.37
9/5/2014 Sold 226485 - - 31,825,840 0.37
9/12/2014 Sold 54324 - - 31,771,516 0.37
9/19/2014 Sold 197032 - - 31,574,484 0.37
9/30/2014 Purchase 88390 - - 31,662,874 0.37
10/3/2014 Sold 8732 - - 31,654,142 0.37
10/10/2014 Sold 56001 - - 31,598,141 0.37
10/17/2014 Sold 118361 - - 31,479,780 0.37
10/24/2014 Sold 287748 - - 31,192,032 0.36
10/31/2014 Purchase 14823 - - 31,206,855 0.36
11/7/2014 Sold 23168 - - 31,183,687 0.36
11/14/2014 Sold 84674 - - 31,099,013 0.36
11/21/2014 Purchase 3716 - - 31,102,729 0.36
11/28/2014 Sold 130467 - - 30,972,262 0.36
12/5/2014 Purchase 137862 - - 31,110,124 0.36
12/12/2014 Sold 45107 - - 31,065,017 0.36
12/19/2014 Purchase 780925 - - 31,845,942 0.37
12/31/2014 Purchase 1440839 - - 33,286,781 0.39
1/2/2015 Purchase 171606 - - 33,458,387 0.39
1/9/2015 Purchase 369845

-

- 33,828,232 0.40
1/16/2015 Purchase 896166 - - 34,724,398 0.41
1/23/2015 Purchase 140874 - - 34,865,272 0.41
1/30/2015 Purchase 204617 - - 35,069,889 0.41
2/6/2015 Purchase 1234044 - - 36,303,933 0.42
2/13/2015 Purchase 270101 - - 36,574,034 0.43
2/20/2015 Sold 16585 - - 36,557,449 0.43
2/27/2015 Sold 52986 - - 36,504,463 0.43
3/6/2015 Purchase 301071 - - 36,805,534 0.43
3/13/2015 Sold 126721 - - 36,678,813 0.43
3/20/2015 Sold 200150 - - 36,478,663 0.43
3/27/2015 Purchase 415630 - - 36,894,293 0.43
(C) At the End of the year (or on the date of separation, if separated during the year)

-

- 37,140,388 0.43

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

6. VANGUARD EMERGING MARKETS STOCK INDEX FUND, ASERIE No. of shares % of total share of the company No. of shares % of total share of the company
(A) At the beginning of the year 36,013,384 0.42 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
Date Reason
4/4/2014 Purchase 202120 - - 36,215,504 0.42
4/11/2014 Purchase 247597 - - 36,463,101 0.43
4/18/2014 Purchase 35371 - - 36,498,472 0.43
5/23/2014 Purchase 90954 - - 36,589,426 0.43
5/30/2014 Purchase 611072 - - 37,200,498 0.43
7/11/2014 Purchase 176855 - - 37,377,353 0.44
7/25/2014 Purchase 202120 - - 37,579,473 0.44
8/1/2014 Purchase 323392 - - 37,902,865 0.44
8/22/2014 Purchase 412427 - - 38,315,292 0.45
9/12/2014 Purchase 141484 - - 38,456,776 0.45
9/30/2014 Sold 765215 - - 37,691,561 0.44
11/28/2014 Purchase 141484 - - 37,833,045 0.44
12/5/2014 Purchase 126325 - - 37,959,370 0.44
1/9/2015 Sold 207173 - - 37,752,197 0.44
1/16/2015 Sold 90954 - - 37,661,243 0.44
1/23/2015 Sold 85901 - - 37,575,342 0.44
2/6/2015 Sold 25265 - - 37,550,077 0.44
2/13/2015 Sold 101060 - - 37,449,017 0.44
(C) At the End of the year (or on the date of separation, if separated during the year - - 37,374,692 0.44

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

7. LIC OF INDIA MARKET PLUS 1 GROWTH FUND No. of shares % of total share of the company No. of shares % of total share of the company
(A) At the beginning of the year 27,723,200 0.32 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
Date Reason
4/25/2014 Sold 621009 - - 27,102,191 0.32
5/9/2014 Sold 594971 - - 26,507,220 0.31
6/13/2014 Sold 77197 - - 26,430,023 0.31
6/20/2014 Sold 100000 ____ ____ 26,330,023 0.31
6/30/2014 Sold 1284376

-

- 25,045,647 0.30
7/4/2014 Sold 712206 - - 24,333,441 0.28
7/11/2014 Sold 553002

-

- 23,780,439 0.28
7/25/2014 Sold 75215

-

- 23,705,224 0.28
8/1/2014 Sold 487500 - - 23,217,724 0.27
8/8/2014 Sold 462256 - - 22,755,468 0.27
8/15/2014 Sold 667770 - - 22,087,698 0.26
8/22/2014 Sold 455000 - - 21,632,698 0.25
8/29/2014 Sold 933671 - - 20,699,027 0.24
(C) At the End of the year (or on the date of separation, if separated during the year) - - 20,699,027 0.24

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

8. HSBC GLOBAL INVESTMENT FUNDS ACCOUNT HSBC GIF MAURITU No. of shares % of total share of the company No. of shares % of total share of the company
(A) At the beginning of the year 26,352,684 0.31 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
Date Reason
5/9/2014 Sold616714

-

- 25,735,970 0.30
5/16/2014 Sold162349 - - 25,573,621 0.30
5/23/2014 Sold58382 - - 25,515,239 0.30
6/13/2014 Sold343273 - - 25,171,966 0.30
6/20/2014 Sold1159875 - - 24,012,091 0.28
8/15/2014 Sold476696 - - 23,535,395 0.28
8/22/2014 Sold396604 - - 23,138,791 0.27
8/29/2014 Sold621015 - - 22,517,776 0.26
9/5/2014 Sold348361 - - 22,169,415 0.26
9/12/2014 Sold328691 - - 21,840,724 0.26
10/10/2014 Sold500000 - - 21,340,724 0.25
10/17/2014 Sold196737 - - 21,143,987 0.25
10/24/2014 Sold263157

-

- 20,880,830 0.24
(C) At the End of the year (or on the date of separation, if separated during the year) - - 20,880,830 0.24

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

9. CPSE ETF No. of shares % of total share of the company No. of shares % of total share of the company
(A) At the beginning of the year 24,786,189 0.29 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/ transfer/bonus/sweat equity etc):
Date Reason
4/4/2014 Purchase 51120

-

- 24,837,309 0.30
4/11/2014 Sold 7642755 - - 17,194,554 0.20
4/18/2014 Sold 1238365 - - 15,956,189 0.19
4/25/2014 Sold 1198370 - - 14,757,819 0.17
5/2/2014 Sold 649254 - - 14,108,565 0.16
5/9/2014 Sold 345594 - - 13,762,971 0.16
5/16/2014 Purchase 155525 - - 13,918,496 0.16
5/23/2014 Purchase 204952 - - 14,123,448 0.17
5/30/2014 Purchase 225896 - - 14,349,344 0.17
6/6/2014 Purchase 104720 - - 14,454,064 0.17
6/13/2014 Sold 40392 - - 14,413,672 0.17
6/20/2014 Purchase 17952 - - 14,431,624 0.17
6/30/2014 Purchase 31416

-

- 14,463,040 0.17
7/4/2014 Purchase 23936 - - 14,486,976 0.17
7/11/2014 Sold 7480 - - 14,479,496 0.17
7/18/2014 Purchase 14541 - - 14,494,037 0.17
7/25/2014 Purchase 19435 - - 14,513,472 0.17
8/1/2014 Purchase 13455 - - 14,526,927 0.17
8/8/2014 Purchase 4485 - - 14,531,412 0.17
8/15/2014 Sold 1495 - - 14,529,917 0.17
8/22/2014 Purchase 312715 - - 14,842,632 0.17
8/29/2014 Sold 36600 - - 14,806,032 0.17
9/5/2014 Sold 18220 - - 14,787,812 0.17
9/12/2014 Sold 79508 - - 14,708,304 0.17
9/19/2014 Sold 47399

-

- 14,660,905 0.17
9/30/2014 Purchase 65747 - - 14,726,652 0.17
10/3/2014 Sold 6116 - - 14,720,536 0.17
10/10/2014 Sold 1529 - - 14,719,007 0.17
10/17/2014 Purchase 62689 - - 14,781,696 0.17
10/24/2014 Purchase 51986

-

- 14,833,682 0.17
10/31/2014 Sold 29051 - - 14,804,631 0.17
11/7/2014 Purchase 82566 - - 14,887,197 0.17
11/14/2014 Purchase 752054 - - 15,639,251 0.17
11/21/2014 Sold 695702 - - 14,943,549 0.17
11/28/2014 Sold 52899 - - 14,890,650 0.17
12/5/2014 Sold 33663 - - 14,856,987 0.17
12/12/2014 Sold 24045 - - 14,832,942 0.17
12/19/2014 Sold 33663 - - 14,799,279 0.17
12/31/2014 Purchase 150333 - - 14,949,612 0.17

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

9. CPSE ETF No. of shares % of total share of the company No. of shares % of total share of the company
1/2/2015 Sold 59459 - - 14,890,153 0.17
1/9/2015 Purchase 80350

-

- 14,970,503 0.17
1/16/2015 Sold 44996

-

- 14,925,507 0.17
1/23/2015 Sold 35354 - - 14,890,153 0.17
1/30/2015 Sold 73922 - - 14,816,231 0.17
2/6/2015 Sold 33747 - - 14,782,484 0.17
2/13/2015 Sold 3214 - - 14,779,270 0.17
2/20/2015 Purchase 906764

-

- 15,686,034 0.18
2/27/2015 Sold 15309 - - 15,670,725 0.18
3/6/2015 Sold 32584 - - 15,638,141 0.18
3/13/2015 Purchase 223221 - - 15,861,362 0.19
3/20/2015 Purchase 13738 - - 15,875,100 0.19
3/27/2015 Purchase 104040 - - 15,979,140 0.19
(C) At the End of the year (or on the date of separation, if separated during the year) - - 15,975,672 0.19

 

SI. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

10. LIC OF INDIA MARKET PLUS 1 GROWTH FUND No. of shares % of total share of the company No. of shares % of total share of the company
(A) At the beginning of the year 24,040,209 0.28 - -
(B) Date wise Increase/Decrease in Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):
Date Reason
4/25/2014 Sold247975 - - 23,792,234 0.28
5/9/2014 Sold271362 - - 23,520,872 0.27
6/30/2014 Sold916104 -

-

22,604,768 0.26
7/4/2014 Sold610286 - - 21,994,482 0.26
7/11/2014 Sold200000 - - 21,794,482 0.25
7/25/2014 Sold400000 - - 21,394,482 0.25
8/1/2014 Sold198311 - - 21,196,171 0.25
8/8/2014 Sold297374 - - 20,898,797 0.24
8/15/2014 Sold350000 - - 20,548,797 0.24
8/22/2014 Sold685000 - - 19,863,797 0.23
8/29/2014 Sold475000 - - 19,388,797 0.23
(C) At the End of the year (or on the date of separation, if separated during the year) - - 19,388,797 0.23

Annexure -F

A. ENERGY CONSERVATION

The following measures were taken towards energy conservation during 2014-15

• During the year LED Retrofit tube lights (20W)-1800 nos. were replaced in place of conventional 36W/40W Tubes having power consumption of approx. 50W including choke.

• 25 KW Roof top Solar Plant was installed at KDMIPE which is feeding power to Streetlights of KDMIPE.

• For renovation works at various labs/ offices of KDMIPE, 120 nos. LED (36/ 40W) were replaced in place of 2x40W Tube fitting having power consumption of approx. 100W including choke.

• 308 Nos. of 2X40W Tube fittings having power consumption of 100 Watt were replaced by LED Fittings

(36 ) in GEOPIC.

• As a Green initiative, 15K solar photo-voltaic power plant was installed at GEOPIC roof top.

• During renovation of IRS canteen all the light fittings 12x40 tube light fittings (12 no.) have been replaced with 43W LED light fittings (9 no.)

• UranPlant : The measures taken during 2014-15 include 125 K p Solar Power Plant at Roof Top of Raw ater Reservoir and 50 KWp Solar Power Plant at Roof Top of New APU Substation.

• Hazia Plant - Movement detector lighting circuits have been installed in unmanned sub-stations.

• 6 AC-VFD rigs have been introduced in Onshore Assets.

• Ankleshwar Asset installed and commissioned 2 nos. of hired gas compressors, one each in Gandhar & Ankleshwar fields to reduce gas flaring and monetize the same.

• HPSV lamps in street lighting were replaced by Energy saver LED lamps in IDT.

Impact of measures for reduction of energy consumption and consequent impact on the cost of production of goods

The energy conservation measures taken as above have resulted in significant saving. Further, the above measures have resulted in reduction of significant quantity of fuel consumption (HSD, Natural Gas and electricity).

B. RESEARCH AND DEVELOPMENT Specific areas in which R&D was carried out

• Updation of tectonic map of India.

• Basin architecture and Mesozoic sedimentation in western offshore basins.

• Analysis of the various elements of Petroleum system(s) of the study in KG and Mahanadi areas with respect to hydrocarbon charging.

• Delineation of shallow pay sands in a pilot area of Ankaleshwar field, Cambay Basin.

• Evaluation of its hydrocarbon prospectivity in Chenab-Beas Sector of Himalayan Foothills in analogy with Upper Indus Petroliferous basin.

• Plate Tectonic reconstruction of Gondwana deposits of India.

• Strontium-Neodymium (Sr-Nd) isotopic and geochemical characterization of basaltic basement in

estern Offshore Basin.

• Evaluation of low resistivity pay sand GS-12 of Gandhar field.

Assessment of Gas Hydrate potential in Andaman offshore area.

Basin Centered Gas prospectivity in arsan Low in Mehsana Area, North Cambay Basin.

Software development using CUDA-GPU Technology

Software development for data access from OpenWorks database to other platforms over the network

Software development for interactive Spectral Decomposition in Petrel to improve the understanding of anomalous zones quickly by generating the spectral attributes on the fly from the seismic data.

Development of software for improving the frequency bandwidth to induct the MPI parallel processing techniques using high performance cluster systems for compute intensive seismic processing methods.

Development of software for transforming angle gathers to offset gathers as an OMEGA plugin

Interpretation of Passive Seismic data to absorb this fast emerging Technology to generate 3-D velocity structure of the sub-surface for hydrocarbon exploration using data from micro-earthquakes.

Anisotropic Pre-stack Depth Migration (PSDM) using seismic 3D data pertaining to prospect, B173-A, of Neelam-Heera Asset, Mumbai Offshore, Using OMEGA and Geodepth Softwares

Application of Geostatical inversion-technique for removal of coal effect. Structural Engineering

Life extension and recertification of the offshore jacket platforms in western offshore, which have outlived their design lives, through a collaborative project with DNV GL.

Risk based inspection planning for offshore structures in western offshore

Material Selection Corrosion Control

Suitable material of construction for tubular and flow line of deep water development

Geotechnical Studies

Application of Field vane shear Test in offshore geotechnics

Gas Hydrate Studies

> Studies on the feasibility of gas production from gas hydrate bearing reservoirs using molecular substitution technique

IRS, has completed a number of R&D Projects in FY (14-15) on Field development based on Reservoir simulation studies, Performance monitoring, EOR processes - Lab design and simulation, Reservoir characterization, productivity enhancement projects and basic laboratory data generation for various fields of ONGC.

0 Feasibility Study on introduction of Nano based Non-damaging Drilling Fluid technology in ONGC for increasing Well Productivity and reduction in drilling cost.

0 Proper mud design for drilling in shale sections (long exposure period) in Cambay, KG and Cauvery basins ensuring well stability- (Head COD-Shale gas, Vadodara).

0 Design of Mud system for the wells of Daman development Project (C-24 Addl. Dev. & B 12 fields) -B&S Asset, Mumbai.

0 Design of Mud system for the wells of C -26 cluster (C-23, C -26 and B -12-1 fields)- B&S Asset, Mumbai.

0 Design of Mud system for Sub-hydrostatic reservoirs (Bassein, Vasai East and NBP fields)- (B&S Asset, Mumbai).

0 Designing of Mud policy for drilling Mukta and Bassein (Limestone and shale formations) and Panna pays (Sandstone-Shale formations) of Heera field- (N & H Asset, Mumbai).

0 Low solids/ solid free mud design for successful completion of wells with high angle long section in basement in Borholla and adjoining areas, SAS, A&AA Basin- (COD, Basement Exploration, Mumbai)

0 Inhibited mud system for Kaoliniticshales- (MS, Mumbai).

0 Development of Baryte free synthetic oil based reservoir drilling fluid-( MS, Mumbai ).

0 Drilling fluid for shale gas (Horizontal wells)- (Mud Corporate).

0 HTHP high density clear fluid brines alternative to Cesium Formate- ( Mud Corporate).

0 Feasibility studies of using oil field effluent for preparation of mud & brine- Previous year follow up project- (MS, Ahmedabad Asset).

0 Identification of suitable deflocculant for polymer mud (KCl-PHPA)- (MS, Ahmedabad Asset).

0 Baryte sagging in HTHP wells- (MS, Rajahmundry).

0 Geo-mechanical modelling of B-12 field (Tapti Daman Area, Mumbai Offshore) based on inputs derived from recently drilled wells in the area- (B&S Asset, Mumbai).

0 Geo-mechanical study of Kunjaban field (Tripura) and to suggest safe Mud Weight Window along with suitable Casing Policy to counter the wellbore instability problems- (MS- Tripura).

0 Geo-mechanical study (post drill analyses) of some wells drilled in Cauvery Asset/ Basin namely, KIDA (Kali), KADL (Kuthalam), VNAC (Vanjiyur), BVDA (Bhuvanagiri), BVDB (Bhuvanagiri) and ABAA (Adambavur) and to suggest mud weight window for drilling future wells in the respective fields- (Cauvery Asset).

0 Geo-mechanical study of Khubal field (Cachar) and to suggest suitable Mud Weight Window along with Casing Policy for drilling directional wells in the field- (MS-Cachar).

0 Framing specification of HTHP viscosifier and

dispersant- (MS-Mumbai). 0 Design of optimum casing policy and Mud system for

wells of Daman Development Project (C-24 Addl. Dev. &

B12 fields)- (B&S Asset, Mumbai). 0 Design of optimum casing policy and Mud system for

wells of C-26 Cluster (C-23, C-26 and B-12-1 Fields)-

(B&S Asset, Mumbai). 0 Designing of Casing and Mud policy of drilling Mukta

and Bassein (Limestone and Shale Formations) and

Panna pays (Sandstone-Shale formations) of Heera

field- ( N&H Asset).

0 Formulation of suitable casing and mud policy for Isolation of gas bearing Bandra Pay (Isolating shallow gas reservoir Bandra)- (N&H Asset).

0 Well design for successful completion of wells with high angle long section in basement (including feasibility of using Under-reamer) in Borholla and adjoining areas, South Assam Shelf, A&AA Basin-(CoD Basement)

0 Well plan for the Horizontal Well BVDA (TD-3475m TVD)- (Cauvery Asset, Karaikal).

0 Well plan for the Horizontal Well BVDB (TD-3800m

TVD)- (Cauvery Asset, Karaikal). 0 Well plan for Well # TIAA (TD-3000m)- (Cachar

Forward Base Silchar). 0 Comparative Study of Digvijay vs. Dalmia Cement for

Slurry Design of HP-HT Wells in East Coast & West

Coast Fields and Recommendation for Improvement in

the Physical / Chemical Parameters of Digvijay

Cement- (CS-Mumbai). 0 Comparative Study of Dalmia vs. Dyckerhoff Cement

for use in Slurry Design for Ultra hP/HT Wells in East

Coast & West Coast Fields- (CS-Mumbai). 0 Cementation Job in Loss and Gain Situation in 9 5/8"

Casing and 7" Liner Job in Eastern / Western Offshore

of MR- (Mumbai Region).

0 Formulation of Tentative Specification for Cement Additives Packages for Low Temperature and Light Weight Application- (Mumbai Region).

1 Modified formulation and preparation technique of RSF pill for Mumbai Region- (Mumbai Region).

I Isolation of High Permeability/Water Charged Streaks within Bassein Pay, Neelam Field- (N&H Asset, Mumbai).

0 Analysis of shale gas well cementation of the well JMSGA- (Ankleshwar Asset) for

? Probable reasons for poor CBL-VDL of 7" casing

? Howto improve CBL-VDL for Hydro fracturing

? Howto avoid such failure in future

0 Cementing solution for wells of Khubal field and optimization of cement slurry design for a good primary cementation- (Tripura Asset).

0 Analysis of reasons for Poor CBL-VDL in HT-HP well of Rajahmundry Asset- (Rajahmundry Asset).

Benefits derived as result of above R&D:

The R&D projects undertaken by your Company facilitated speedier and effective E&P activities of the Company.

Expenditure on Research & Development

(Rs in million)

2014-15 2013-14
Capital 302.25 213.31
Recurring 4,023.62 5,296.06
Total 4,325.87 5,509.37
Total R&D Expenditure as a percentage of Total Turnover 0.52% 0.66%

C. Technology absorption and adaptation

• Viscoelastic foam acid system (VFA), VSDA & DPRS has been implemented in Mumbai offshore wells resulting in appreciable oil gain.

• For the first time Rigless WSO Job followed by cement squeeze by CTU was carried out in Ahmedabad Asset.

• Two Bottom hole samples of Nagayalanka field, a HPHT reservoir for Joint Venture (Cairn Energy-ONGC consortium) from well NL-1zST at a depth of 4045.2m WL (Raghavpuram sand) and 3995.2m WL (Golapalli sand) were collected by Schlumberger for PVT studies. Both the samples were tested successfully under HPHT conditions.

• Acquired PIPENET vision software (1.7), Spray sprinkler module from M/s. Sunrise System, U.K to check the fire water adequacy.

• I EOT acquired State of the Art Software SAFETI/Phast-6.7 from DNV for Quantitative Risk Assessment.

• Mehsana Asset has developed an in-house pipeline information system on google maps. The system provides all information related to various pipelines of the Asset, their routes, types, sizes, distances, etc. The facility is available from anywhere through intranet with user login authentication.

• 6 Nos of AC-VFD state of art drilling rigs have been introduced in Assam Asset (3 Nos), Ankleshwar Asset (1 Nos), Rajahmundry Asset (1 Nos) and Cauvery Asset (1). These rigs have a capacity of drilling upto 6100 m and have state of the art electronics systems. These rigs have been procured from M/s BHEL.

• Ankleshwar Asset has inducted 2 nos. of new logging units for cased hole and production logging services on 20th October, 2014. The units have been sourced from M/s Weatherford Llc, and are equipped with state of art tools for all types of well and reservoir related jobs.

• Rajahmundry Asset has acquired a sophisticated new open hole logging unit armed with most updated features and specifications. The new unit is also supplemented with high-tech imaging tools like STAR (Simultaneous Acoustic and Resistivity Tool), ECBIL (Extended Circumferential Bore Hole Imaging Log) and Segmented Bond Tool (SBT), thus enhancing the in-house capability by huge proportions. The hi-tech STAR tool provides better reservoir description, fracture detections, borehole break-outs and other geological applications.

• In a breakthrough technology application, hydro-fracturing was successfully carried out in two HP-HT wells of the Rajahmundry Asset. The wells MSAC ( BHT-165.5 Deg C) & MSDB ( BHT-157 Deg C) of Malleshwaram fields were fractured by WSS, Ahmedabad through in-house developed technology in December, 2014. The technology for HPHT is patented and is available at a significant premium in the market. Therefore this path breaking success has opened a new vista for unlocking the potential from tight & HPHT reservoirs through in-house fracturing in a cost effective way.

Tripura Asset has used new technology application of under balanced perforation using Tubing Conveyed Perforation (TCP) guns in wells BRM#25 (Baramura field) and AD#38 (Agartala Dome field) with very encouraging results.

Tripura Asset has acquired state of art well activation and testing equipment to augment well activation/ testing capabilities. Asset has acquired one 200 ksc high pressure compressor for well activations and two nos. of high pressure horizontal 3 phase test separators with state of art instrumentation for well testing operations.

In Cauvery Asset, Gas Corrosion Inhibitor (GCI) dosing system has been installed at the Gas Collecting System (GCS), Kovilkallapal. The system is a first of its kind at Cauvery Asset and was commissioned on 3rd October, 2014. The system will help to improve the gas evacuation system to transport gas in a safe manner.

• BWA (Broadband Wireless Access): BWA project based on IEEE 802.16d standard, comprises of 7 base stations and its associated 227 remote locations at Ahmedabad, Anklehwar, Gandhar, Cambay, Mehsana, Vadodara and Neelam Process complex. A `Pilot Test` was carried out at Gandhar before rollout of the Project. 127 nos of towers (height- 10M, 20M, 30M, 40M and 60M) were erected in Western onshore under the Project. The system is operational at estern Onshore locations successfully with 99% availability.

• Enterprise Wide SCADA (Supervisory Control and Data Acquisition) System: The project created a single platform for monitoring the operations of ONGC`s Drilling and Production facilities and covered 247 onshore production facilities, 11 offshore process complexes, 157 un-manned well platforms, 9 offshore and 64 onshore drilling rigs, 2 Process plants and 1 mini-refinery. Detailed engineering & project execution on a turnkey basis has been carried out by engaging M/s ABB Limited, Bengaluru as an EPC Contractor. The system helps in taking tactical decisions at field level, operational decisions at Base office and Strategic decisions at the Corporate Office level. Data from SCADA system can be directly interfaced to other corporate databases and ERP systems.

• IBM Messaging platform: The IBM Lotus messaging platform has been deployed in ONGC with mail servers based at Delhi and Mumbai. Introduction of O drive, an authenticated cloud based storage facility was also rolled out on IBM Lotus MySpace which provides users a facility to store files & documents that can be accessed from anywhere. Myspace is also being used to share files with other users, form communities and collaborate.

Field implemented IDT developed Micro bubble system successfully at well no. HSD #8H (South Heera Field) of Mumbai Region.

D Information regarding Imported Technology for last five years

S.No. Technology Imported

Year of Import

A TECHNOLOGY
(i) • Continuous Flow Isotope Ratio Mass Spectrometer (CF-IRMS)

2010-11

• COREVAL-30
• SKUA software from M/s Paradigm.
• Fugro Jason ork Bench Software
• SATA-II disks based SAN storage systems
• PERISCOPE
(ii) • 3D Visualisation Centre.

2011-12

• The Fluid Eval.
• Induction of CRAM software from M/s Paradigm.
• Induction of Geo-science core system and seismic interpretation module of petrel software from M/s Geoquest Systems B.V.
• Induction of MATLAB Software from M/s Designtech Systems Ltd.
• Petrel software for Processing of seismic data from M/s Geoquest Systems B.V.
• Multi-Component Seismic Survey - 3D - 3C
• TuffTRAC- a new generation wire line-conveyed tractor, used for carrying out perforations.
• Ultra HPHT TCP-DST- To test wells in very High temperature & Pressure conditions having temperatures beyond 450 F
• RF Safe perforating System.
(iii) • Sm-Nd Dating facility to date hard rocks like Igneous and metamorphic.It also helpful in ascertaining the provenance age in sedimentary rocks.and correlation of reservoir lithologies.

2012-13

(iv) • Radial 3D Saturn Probe-used for pressure measurements, downhole fluid analysis and fluid sampling in extremely low mobility reservoir sections.

2013-14

• Radial Cutter Torch (RCT) used to retrieve the 3 V2" tubing which is clamped with ESP cable in 9 5/8" casing. The thermal Generator System initiates the RCT tool and directs the molten plasma for cutting the pipe.
• Multi sample Porosimeter-Permeameter KEYPHI-used for measurement of petrophysical parameters at variable confining pressure.
• UV-Vis Spectrophotometer Lambda-35 (PerkinElmer) is useful in the genetic correlation, depositional environment and maturity of crude oils and source sequences.
• Thermo Fisher Nicolet iS5 FT-IR Spectrophotometer used for the study of structural group analysis of complex hydrocarbon mixtures, genetic correlation of crude oils & bitumen and oil shale &kerogen analysis.
• The e-Permit system to Work (PTW): offers the distinct advantage of a standardized PTW template across the organization and ensures faster permit access to the end user.
• Air Hammer Drilling-used for the first time in ONGC in well Jabera-3, Vindhyan Basin. The technology is based on the under balanced drilling and has an option for change-over to conventional mud system to meet the operational, safety and testing requirements.
(v) • Broadband seismic technology have been used in Mumbai High Field identification of porosity sweet spots in carbonate reservoirs and thin bed identification within the clastic reservoirs and also the broadband data is expected to help in Basement imaging for prospectivity within locales of intense fracture development.

2014-15

• Micros Seismics surveys are performed to monitor hydraulic fracturing. Initiative has been taken with in-house efforts for acquiring data. Feasibility study for monitoring the progress of hydrofracturing using Microseismics is under progress in Cambay Basin.
• Drill bit Seismicstechnique uses the vibrations produced by a drill bit while drilling as a down hole seismic energy source.The seismic data has been acquired around a well in Gandhar area of Cambay Basin using 3C sensors and drill bit as a source.
• Advance NGS system:Itallows simultaneous display and management of different spectra for desired presentation and effective management of data file. It has latest digital signal processor (Orion) and MCA (Multi Channel Analyser) which will improve the data acquisition, analysis process and enrich the interpretation capabilities.
• New Modules in MOVE suite(Geomechanical Modeling(GM),Fracture Modeling(FM) and Stress Analysis tools have been added in MOVE suite: GM creates 3D restoration models and affords advanced structural systems analysis capabilities. Data generated will be used in fracture modeling and generation of discrete fracture networks (DFN) whereas FM generates non deterministic 3D Discrete Fracture Network (DFN) models that allows the characterization of fracture networks and generates direct outputs for reservoir simulation. The stress analysis tool uses graphical method for analyzing fault and fracture systems under a user defined 3D stress state. The tool computes stress attributes for Slip Tendency, Dilation Tendency, Fracture Stability and Slip Stability of planes.
• 2D long-offset seismic data reprocessing tool using TGS software: This tool will Improve the image by using linear transform (SMELT) module and proprietorysoftware CLARI-FI. This tool has helped in understanding the Basin architecture , Sedimentation History and in identifying prospective locales for Mesozoic exploration of Kutch and Kerala-Konkan Basin.
• Scale-Out NAS 378 TB storage, 40 TB SAN storage and 10G OM3 Fibre based direct Workstation connectivity through IPV6 ready CORE Switch.

• Server virtualization through Rack server & associated Software and induction of Work Stations and Thin Clients.

• Network connectivity has been upgraded from existing 1G to 10G on Fiber Net work.
• Gas Sweeting Facilities at Offshore
B193 Process Platform commissioned in November, 2014 under Development of B193 Cluster fields having high H2S gas concentrations. It is for the first time that sour gas processing & sweetening facilities have been installed and being operated at Offshore installation.
• Float over method installation: HRD process platform has been installed in January, 2015 by using state-of-the-art "Float-Over Technology" resulting in saving of offshore construction time for installation. Earlier the successful installation of B-193 AP Deck of B&S Asset, in December, 2012 using the Float Over method was the first endeavor of ONGC in this direction
• Floating Production, Storage and Offloading (FPSO):

FPSO (Armada Sterling-II) a floating oil production system successfully commissioned in March, 2015 in western offshore to produce oil and gas from Cluster-7 fields. It is to mention that ONGC has earlier for the first time has deployed FPSO in April, 2013 to produce oil from NBP field of Western offshore

• WiMax based point to multipoint broadband communication system: The systems have been deployed in Western Onshore & Western Offshore assets & work centers to provide voice & data connectivity to remote installations. Technology is adapted to suit organizational requirements, but not acquired by ONGC

The WiMax technology is also overtaken by a new technology LTE (Long Term Evolution) which is planned to be deployed in other regions.

• Enterprise wide SCADA (Supervisory Control & Data Acquisition) system: The system have been deployed across the organisation to provide real time production & drilling field parameters to operators, managers & top management. Technology is adapted to suit organizational requirements but not acquired by ONGC
B-Has the technology been fully absorbedRs Yes
C-If not fully absorbed- areas where this has not taken place, reason thereof, and future plans of action. Not

applicable

E. Information on Foreign Exchange Earnings and Outgo

(Rs in millions)

2014-15 2013-14
Foreign Exchange Earnings 50,227.99 74,889.84
Foreign Exchange Outgo 175,420.96 1,83,728.63

Environment Protection and Conservation, Technological Conservation, Renewable Energy Developments, Foreign Exchange Conservations

The measures taken by ONGC with regard to development and utilisation of alternate sources of energy have been brought out in the Board Report under the heading "Unconventional sources of energy" and "Carbon Management & Sustainability Development". Apart from the above, measures taken for environmental protection are outlined below:

Conservation of water: To prevent further depletion and to sustain ground water table, KDMIPE dug six wells to collect the discharge water at different locations of campus.

Recycling of waste: KDMIPE also operates a six-pit Vermi-compost plant where dry leaves and kitchen waste are recycled. As a result,KDMIPE Campus is free from burning of waste papers by recycling the same.

Ringal plantation: To sustain fragile ecosystem of Himalayas, ringal plantation in Upper Himalayan Region is being carried out as an initiative under National Action Plan on Climate Change launched by the Prime Minister. So far, 10.75 lakhs Ringal plantation in 430 ha of Upper Himalayan region has been done resulting in 1.97 million tonnes of CO2 fixation per annum.

Mangrove plantation: For protection and stabilization of shoreline close to ONGC Assets mangrove plantation is being carried out. So far, 19.95 lakhs mangrove plants have been planted in Gandhar Area and 1.5 lakhs near Hazira Plant. To spread awareness on significance of Mangroves plantation, protection and its continued cultivation programmes were arranged among children and local communities in these areas.

Bio-Remediation: To prevent the contamination of soil ONGC entered into a rate contract with ONGC`s joint venture company OTBL for Bio- remediation of oily sludge/ oil contaminated waste. In the financial year 2014-15 about 69,152 MT of oily sludge/ oil contaminated waste has been bio-remediated across various assets of ONGC

Annexure -G

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE

FINANCIAL STATEMENTS OF OIL AND NATURAL GAS CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2015

The preparation of financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March 2015 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management of the company. The statutory auditor appointed by the Comptroller and Auditor General of India under Section 139 (5) of the Act is responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 28 May, 2015.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)(a) of the Act of the financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March 2015. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to enquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors` report.

For and on behalf of the
Comptroller & Auditor General of India
Sd/-
Parama Sen
Place : Mumbai Principal Director of Commercial Audit
Date : 10 July, 2015 & ex-officio Member, Audit Board - II, Mumbai

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF OIL AND NATURAL GAS CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2015

The preparation of consolidated financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March 2015 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management of the company. The statutory auditor appointed by the Comptroller and Auditor General of India under Section 139 (5) read with section 129(4) of the Act is responsible for expressing opinion on the financial statements under section 143 read with section 129(4) of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 28 May, 2015.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary, audit under section 143(6)(a) read with section 129(4) of the Act of the consolidated financial statements of Oil and Natural Gas Corporation Limited for the year ended 31 March, 2015. We conducted a supplementary audit of the financial statements of subsidiaries and Joint Venture Entities (As per Annexure - I), but did not conduct supplementary audit of the Financial Statement of subsidiaries, Joint Ventures and Associates (As per Annexure - II) for the year ended on that date. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to enquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.

On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors` report.

For and on behalf of the
Comptroller & Auditor General of India
Sd/-
Parama Sen
Place : Mumbai Principal Director of Commercial Audit
Date : 10 July, 2015 & ex-officio Member, Audit Board - II, Mumbai

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