OIL AND NATURAL GAS CORPORATION LIMITED

COMPANY SECRETARIAT

CS/ONGC/AGM/SE/2021-22 14.09.2021

National Stock Exchange of India Ltd. BSE Limited

Listing Department Corporate Relationship Department
Exchange Plaza Phiroze Jeejeebhoy Towers
Bandra-Kurla Complex, Bandra (E) Dalai Street, Fort
Mumbai — 400 051 Mumbai — 400 001

Symbol-ONGC; Series - EQ BSE Security Code No.- 500312

Sub: Addendum to the Notice of 28th Annual General Meeting

Madam/Sir,
Further to our letter of even no. dated 30.08.2021 w.r.t. Notice of Annual General Meeting and Annual Report for the
FY 2020-21, an addendum to the notice of 28th AGM is submitte..

Aforesaid Addendum to the Notice of AGM is being dispatched to the members whose email addresses are registered
with the RTA/ Depositories.

This is for your kind information and record please.

Thanking you,
Yours faithfully,
for Oil a1 .Natural
. as Corporation Ltd

VAC\
(R.'i ant)
Comp y Secretary & Compliance Officer

Ends.: As above.

Regd. Office : Plot No. 5A-5B, Nelson Mandela Road, Vasant Kunj, New Delhi-110070
Phone : 011- 2675 4073, 011-2675 4085 EPABX : 2675 0111, 2612 9000 Fax : 011-2612 9081
CIN No. L74899DL1993G01054155 Website : www.ongcindia.com E-mail : [email protected]
 THE UNSTOPPABLE
ENERGY SOLDIERS
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OIL AND NATURAL GAS CORPORATION LIMITED
CIN: L74899DL1993GOI054155
Reg. Office: Plot No. 5A-5B, Nelson Mandela Road, Vasant Kunj, New Delhi - 110070
Website: www.ongcindia.com email: [email protected] Tel: 011-26754073/4085

Addendum to the Notice of 28th Annual General Meeting dated 27.08.2021

SPECIAL BUSINESS:
ITEM NO. 5
Appointment of Shri Pankaj Kumar as the Director by passing the following resolution as an
ordinary resolution
“RESOLVED THAT Shri Pankaj Kumar (DIN 09252235), who has been appointed by the Board as an Additional
Director and designated as the Director (Offshore) w.e.f. 04.09.2021, be and is hereby appointed as Director

Addendum to the Notice

of the Company in terms of Section 152 of the Companies Act, 2013, liable to retire by rotation, on such terms
and conditions, remuneration and tenure as may be determined by the President of India from time to time.”

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

ITEM NO. 5
Appointment of Shri Pankaj Kumar as Director
In terms of Article 96(d) of the Articles of Association of the Company, the Ministry of Petroleum and Natural Gas,
Government of India vide letter no. CA-31011/1/2019-CA-PNG dated 04.09.2021 has conveyed approval of the
proposal for appointment of Shri Pankaj Kumar as the Director (Offshore) on the Board of the Company.
Accordingly, the Board of Directors of the Company has appointed Shri Pankaj Kumar as an Additional
Director w.e.f. 04.09.2021, who shall hold office up-to this AGM.
In terms of Section 160 of the Companies Act, 2013, the Company has received necessary candidature
along with deposit of `1,00,000/- from Shri Pankaj Kumar, proposing himself for appointment as Director of
the Company.
Brief profile of Shri Pankaj Kumar in terms of regulation 36(3) of SEBI-Listing Regulations, 2015 is enclosed
at Annexure -1.
Shri Pankaj Kumar, if appointed as Director, will be liable to retire by rotation under Section 152 of the
1
Companies Act, 2013.
Except Shri Pankaj Kumar, none of the Directors, Key Managerial Personnel and their relatives is interested or
concerned in the resolution.
The Board recommends the Ordinary Resolution as set out at item no.5 for approval of the members.

By Order of the Board of Directors

Sd/-
New Delhi (Rajni Kant)
09.09.2021 Company Secretary
 THE UNSTOPPABLE
ENERGY SOLDIERS
Annexure-1

Brief profile of Shri Pankaj Kumar

Name (DIN) Shri Pankaj Kumar (DIN 09252235)
Date of Birth & Age 30.06.1966 (55 years)
Date of Appointment 04.09.2021
Qualifications 1. Bachelor’s degree in Chemical Engineering from University of Roorkee
(now IIT Roorkee);
2. Master’s degree in Process Engineering & Plant Design from IIT Delhi;
and
3. Advance Management Program from IIM, Bengaluru and Leadership
Development Program from IIM, Calcutta
No. of Shares held 1,080 equity shares
Experience in specific Shri Pankaj Kumar is a thorough Oil & Gas industry professional with more
Functional Areas than 34 years of experience across ONGC’s business functions varying from
Operations Management of Offshore and Onshore fields, Well Engineering,
Addendum to the Notice

Joint Venture Management, Corporate Strategic Management and Asset

Management.
Shri Pankaj Kumar has held several key positions such as Chief of Corporate
Strategy & Planning and Asset Manager of Cambay Asset and Ahmedabad
Assets. Sustainable production enhancement from mature fields of
Ahmedabad & Cambay are another testimony to his impeccable Asset &
Project Management skills.
Shri Pankaj Kumar is known for his visionary approach and dynamic decision
making with excellent performance records. During his stint in Joint Venture
(JV) Operations Group, he was instrumental in exceptional turnaround of CB-
OS/2 Offshore JV block by making it profitable with almost 100% increase
in production and delivering complex offshore projects in Panna-Mukta &
Tapti block, on-time and within allocated budget. Shri Kumar’s immense
contribution in formulation of ONGC’s Long Term Growth Strategy: Energy
Strategy 2040 as Chief Corporate Strategy & Planning is remarkable.
During his tenure as Asset Manager of the largest onshore Asset of ONGC
at Ahmedabad, Country faced worst ever Pandemic and the lock down
situation. Under his dynamic leadership during severe lock-down conditions
2 Asset having 67 installations continued operations on round the clock basis
\ .1 and maintained production.
Directorship held in other Nil
listed companies
Disclosure of inter-se None
relationship with Directors
and Key Managerial
Personnel
Chairmanship (C) Nil
Membership (M) of
Committees across all
Public companies*
*Audit Committee (AC) and Stakeholders Relationship Committee (SRC) details are mentioned as per regulation 26 of Listing Regulations, 2015.
3ileaMieft
OIL AND NATURAL GAS CORPORATION LIMITED
iqP 1 COMPANY SECRETARIAT
onoc

CS/ONGC/AGM/SE/2021-22 30.08.2021

National Stock Exchange of India Ltd. BSE Limited

Listing Department Corporate Relationship Department
Exchange Plaza Phiroze Jeejeebhoy Towers
Bandra-Kurla Complex, Bandra (E) Dalai Street, Fort
Mumbai — 400 051 Mumbai — 400 001

Symbol-ONGC; Series - EQ BSE Security Code No.- 500312

Sub: Notice of 28th Annual General Meeting along with Annual Report 2020-21
Madam/Sir,
This is in continuation to our letter of even no. dated 27.08.2021, regarding intimation of 28th Annual General Meeting
(AGM) of members of the Company to be held on Friday, the 24th September, 2021 at 11:00 hours through Video
Conferencing (VC) / Other Audio Visual Means (OAVM).
A copy of Notice of 28th AGM together with Annual Report of the Company for the financial year 2020-21, is submitted
for your reference and record. The said Notice and Annual Report are also being hosted on the Company's website at
httns.//www.onncindia.corni and on the website of e-voting Agency-NDSL at wwwevotinvisdl.com.
In compliance with the provisions of Section 108 of the Companies Act, 2013, rules made there under and Regulation
44 of the SEBI- Listing Regulations, 2015, Members are provided with the facility to cast their vote electronically through
remote e-voting services provided by NSDL on all resolutions set-forth in the Notice of AGM.

The remote e-voting period will commence at 09:00 hrs. (1ST) on Tuesday, the 21st September 2021 and ends at
17:00 hrs. (1ST) on Thursday, the 23rd September 2021. The remote e-voting module shall be disabled by NSDL for
voting thereafter.

The cut-off date to be eligible to vote by electronic means is Friday, the 17th September 2021.

Those members, who intend to participate in the AGM through VC/ OAVM facility and could not cast their vote on the
Resolutions through remote e-voting, shall be eligible to vote through e-voting system during the AGM.
Thanking you,
Yours faithfully,
for a Nat al Gas Corporation Ltd
If
gr
(R nt)
C ny Secretary & Compliance Officer

Encls.: As above.

Regd. Office : Plot No. 5A-5B, Nelson Mandela Road, Vasant Kunj, New Delhi-110070
Phone : 011- 2675 4073, 011-2675 4085 EPABX : 2675 0111, 2612 9000 Fax : 011-2612 9081
CIN No. L74899DL1993G01054155 Website : www.ongcindia.com E-mail : [email protected]
 THE UNSTOPPABLE
ENERGY SOLDIERS
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QP1
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OIL AND NATURAL GAS CORPORATION LIMITED
CIN: L74899DL1993GOI054155
Reg. Office: Plot No. 5A-5B, Nelson Mandela Road, Vasant Kunj, New Delhi - 110070
Website: www.ongcindia.com email: [email protected] Tel: 011-26754073/4085

NOTICE
NOTICE is hereby given that the 28th Annual General Meeting (“AGM”) of the Members of OIL AND NATURAL
GAS CORPORATION LIMITED will be held on Friday, the 24th September, 2021 at 11:00 hrs. (IST) through
Video Conferencing / Other Audio Visual Means to transact the following business. The proceedings of the AGM
shall be deemed to be conducted at the Registered Office: Plot No. 5A-5B, Nelson Mandela Road, Vasant Kunj,
New Delhi - 110070.

ORDINARY BUSINESS:

ITEM NO. 1

AGM Notice
To receive, consider and adopt the audited Standalone as well as Consolidated Financial Statements of the
Company for the financial year ended March 31, 2021 together with Reports of the Directors and the Auditors
thereon.

ITEM NO. 2

To declare the Final Dividend of `1.85 per equity share for the financial year 2020-21.

ITEM NO. 3

To appoint a Director in place of Dr. Alka Mittal (DIN: 07272207), who retires by rotation and, being eligible,
offers herself for re-appointment.

ITEM NO. 4

To authorise the Board of Directors for fixing the remuneration of Statutory Auditors as appointed by the
Comptroller and Auditors General of India for the financial year 2021-22.
1

By Order of the Board of Directors

Sd/-
(Rajni Kant)
27.08.2021 Company Secretary
New Delhi (FCS: 4291)
 6
NOTES:
THE UNSTOPPABLE
ENERGY SOLDIERS

1. In view of the prevailing Covid-19 pandemic, the Ministry of Corporate Affairs (“MCA”) vide Circular No.
20/2020 dated 05.05.2020 read with Circular no. 02/2021 dated 13.01.2021 and Securities and Exchange
Board of India (“SEBI”) Circular Nos. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated 12.05.2020 and SEBI/HO/
CFD/CMD2/CIR/P/2021/11 dated 15.01.2021, permitted holding of the Annual General Meeting (“AGM”)
through Video Conference (VC)/ Other Audio Visual Means (OAVM), without the physical presence of the
Members at a common venue. In compliance with the aforesaid Circulars, the AGM of the Company is
being held through VC/OAVM.
2. A member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on
his/ her behalf and the proxy need not be a member of the Company. However, MCA while granting the
relaxations to hold the AGM through VC/OAVM has also provided exemption from the requirement of
appointing proxies. Accordingly, the proxy form, attendance slip and the route map of the venue have also
not been provided along with the Notice.
Members are requested to participate in the AGM through VC /OAVM from their respective locations and
the said participation of members will be reckoned for the purpose of quorum.
3. In compliance with Regulation 44 of SEBI (Listing Obligation and Disclosure Requirements) Regulations,
2015 (“SEBI (Listing Regulations)”), the top 100 Listed Companies, as per market capitalization,
are required to provide the facility of one-way Live Webcast of the proceedings of General Meeting.
AGM Notice

Accordingly, facility of one-way Live Webcast of the proceedings and also VC facility are arranged for the
ease of participation of the members and the participants are allowed to pose questions concurrently.
4. Members seeking any information/ clarification with regard to the accounts or any matter to be dealt at the
AGM, are requested to write at [email protected] on or before 15th September 2021.
5. The relevant details, pursuant to Regulations 36(3) of the SEBI Listing Regulations and Secretarial
Standard on General Meetings as issued by the Institute of Company Secretaries of India, in respect of
Director seeking re-appointment at this AGM is annexed.
6. In compliance with the aforesaid MCA and SEBI Circulars, Notice of the AGM along with the Annual
Report 2020-21 is being sent only through electronic mode at the email addresses of members as
registered with the RTA/ Depositories as on Friday, the 20th August 2021. Physical Copy of Notice and/
or Annual Report will not be sent to any member.
Members may note that the Notice and Annual Report 2020-21, will also be available at the Company’s website
www.ongcindia.com, websites of the Stock Exchanges, viz. BSE Limited and National Stock Exchange of
India Limited, at www.bseindia.com and www.nseindia.com respectively, and also the e-voting agency,
2
viz. National Securities Depository Limited (NSDL) website at https://www.evoting.nsdl.com.
7. The Register of Directors and Key Managerial Personnel and their shareholding, under Section 170 of
the Companies Act, 2013 (‘Act’) and the Register of Contracts or Arrangements in which the Directors
are interested, maintained under Section 189 of the Act, will be available at the website of the Company
(https://www.ongcindia.com) electronically for inspection without payment of fee to the members during
the AGM. Members seeking to inspect such documents can send an email to [email protected].
8. Pursuant to Section 139 read with Section 142 of the Act, the Auditors of the Company are appointed
by the Comptroller and Auditor General of India. However, the remuneration of Auditors shall be fixed by
the Company at the Annual General Meeting. Members may authorise the Board to determine and fix
remuneration payable to Auditors for the financial year 2021-22 after taking into consideration change(s),
if any, in scope of assignments due to statutory requirements/ volume of work/ inflation index.
6
9.
THE UNSTOPPABLE
ENERGY SOLDIERS
The Board of Directors of the Company has recommended a final dividend of `1.85 per share. The
Company has fixed Friday, the 10th September, 2021 as the ‘Record Date’ for determining entitlement of
members to receive final dividend for the year ended March 31, 2021, if approved, at the AGM. The final
dividend, once approved by the members in the AGM, will be paid to the eligible shareholders within the
stipulated period of 30 days of declaration.
10. The dividend will be paid through electronic mode to those members whose bank account details are
available in the records of RTA/ Depository Participants. For those members whose only bank account
number is available, dividend warrants / demand drafts will be sent to their registered address. To avoid
delay in receiving dividend, members are requested to register / update their bank account details.
11. Members may note that the Income Tax Act, 1961, as amended by the Finance Act, 2020, mandates that
dividends paid or distributed by a Company is taxable in the hands of members. The Company shall
therefore be required to deduct tax at source (“TDS”) at the time of making the payment of dividend.
Members are requested to submit the relevant documents on or before Tuesday, the 14th September
2021, for ascertaining applicable rate of TDS. The detailed communication regarding TDS on dividend
may be accessed at https://www.ongcindia.com/wps/wcm/connect/en/investors/agm/
12. (A) Members holding shares in physical mode are:
a. required to submit/ update their Bank Account details, E-mail ID and PAN to the Company/
RTA;

AGM Notice
b. requested to opt for the Electronic Clearing System (ECS) mode for instant and secured receipt
of dividend in future;
c. advised to make nomination in respect of their shareholding in Form SH-13;
d. requested to send their share certificates to RTA for consolidation, in case shares are held
under two or more folios;
e. Informed that the shares in physical mode will not be accepted for transfer; and are advised to
convert their holdings into dematerialized form.
(B) Members holding shares in electronic mode are:
a. requested to submit their address, Bank Account Details, E-mail id and PAN to respective
DPs with whom they are maintaining their demat accounts including the change, if any, as
mandated by SEBI; and
b. advised to contact their respective DPs for availing the nomination facility. 3
13. Members may register/ update their E-mail addresses with RTA, if shares are held in physical mode, or
with their DPs, if shares are held in electronic mode, to ensure delivery of all future communications from
the Company including Annual Reports, Notices, Circulars, etc., without delay or, as the case may be,
loss in postal transit.
14. Members are requested to note that dividends not claimed for a period of 7 years from the date of transfer
to Unpaid Dividend Account(s) of the Company are liable to be transferred to the Investor Education and
Protection Fund (“IEPF”) of the Government of India. Further, Section 124(6) of the Act provide that
all shares in respect of which dividend has not been paid or claimed for 7 consecutive years shall be
transferred by the Company to the demat account of IEPF Authority.
 6

THE UNSTOPPABLE
ENERGY SOLDIERS
In view of this, Members are requested to claim their dividend(s) from the Company, within the stipulated
timeline. Members, whose unclaimed dividend(s)/share(s) have been transferred to IEPF, may claim the
same by making an online application to the IEPF Authority in prescribed Form No. IEPF-5 available on
www.iepf.gov.in.
15. Members are requested to address all correspondence relating to the shareholding and dividend to
the Registrar & Share Transfer Agent (RTA) of the Company i.e. Alankit Assignments Ltd, Account
ONGC, Alankit House, 4E/2, Jhandewalan Extension, New Delhi – 110055, Telephone: 91-
11-4254 1234/ 1960, Fax: 91- 11-42541201/ 23552001, Website: www.alankit.com, E-mail:
[email protected].
However, keeping in view the convenience of the Members, documents relating to shares including
complaints/grievances shall also be received at the Registered Office of the Company and may contact
at Phone No: 011-26754073/ 4085; e-mail: [email protected].
E-Voting:
i. In compliance with the provisions of Section 108 of the Act, the Rules made there under and
Regulation 44 of the SEBI Listing Regulations, Members are provided with the facility to cast their
vote electronically, through remote e-voting services provided through NSDL on all business items
set-forth in this Notice. The instructions for e-voting are annexed herewith.
ii. The remote e-voting period will commence at 09:00 hrs. (IST) on Tuesday, the 21st September
AGM Notice

2021 and ends at 17:00 hrs. (IST) on Thursday, the 23rd September 2021. The remote e-voting
module shall be disabled by NSDL for voting thereafter.
iii. During this period, Members holding shares either in physical form or in dematerialized form, as on
cut-off date, i.e. 17th September 2021 may cast their votes electronically.
iv. Those Members, who will be attending AGM through VC/OAVM facility, if not cast their votes on the
Resolutions through remote e-voting, and are otherwise not barred from voting, shall be eligible to
vote through e-voting system during the AGM.
v. The Members who have cast their votes by remote e-voting prior to the AGM may attend in the AGM
through VC / OAVM but shall not be entitled to cast their vote again.
vi. The voting rights of Members shall be in proportion to their shares in the paid-up equity share capital
of the Company as on the cut-off date.
vii. Any person, who has become a Member of the Company after 17th September 2021 may obtain the
4 login ID and password by sending a request at [email protected] and avail the facility of remote
e-voting or voting at the AGM electronically. Members may follow the process mentioned in Notice.
viii. The Company has appointed Shri M. C. Jain (Membership No. FCS 10483, COP No. 22307) of
M/s. JMC & Associates failing which Ms. Ashu Gupta, (Membership No. FCS 4123, COP No. 6646)
of M/s. Ashu Gupta & Company, both Practising Company Secretaries, to act as the Scrutinizer for
conducting the e-voting process in a fair and transparent manner.
6 THE UNSTOPPABLE
ENERGY SOLDIERS

NOTICE
ANNEXURE TO THE NOTICE DATED 27.08.2021:
BRIEF DETAILS OF DIRECTOR SEEKING RE-APPOINTMENT AT THE ANNUAL GENERAL MEETING
(Pursuant to Regulation 36(3) of Listing Regulations, 2015)

Name (DIN) Date of Birth Date of Qualifications No. of Experience in specific Directorship Disclosure Chairmanship (C)
& Age Appointment Shares Functional Areas held in of inter-se Membership (M)
held other listed relationship of Committees
companies with across all
Directors Public
and Key companies*
Managerial
Personnel
Dr. Alka Mittal 27.08.1962 27.11.2018 Post Graduate 10,428 Dr. Alka Mittal joined Hindustan None 1. ONGC- SRC(M)
(07272207) 59 years in Economics, equity as Director (HR) in Petroleum 2. OMPL – AC(M)
MBA (HRM) shares November 2018 and Corporation
and Doctorate has over 36 years of Limited
in Commerce extensive experience in
and Business the Company. She is the
Studies. first woman Functional
Director of ONGC, in its
history.
A leader with a mission,

AGM Notice
Dr. Mittal has driven
a number of strategic
and impactful human
resource programmes
and initiatives in the
Company, with focus on
adopting best-in-class
HR practices towards
making ONGC a best place
to work and nurturing a
generation of dedicated
energy soldiers in India.
Dr. Mittal has also steered
ONGC to become one of
the top companies in the
country in the area of CSR,
with focus on impactful
projects to support social
infrastructure and build
sustainable communities.
5
*Audit Committee (AC) and Stakeholders Relationship Committee (SRC) details are mentioned as per regulation 26 of
Listing Regulations, 2015.
 6 THE UNSTOPPABLE
ENERGY SOLDIERS
INSTRUCTIONS FOR E-VOTING AND JOINING THE ANNUAL GENERAL MEETING
ARE AS UNDER

The remote e-voting period would commence at 09:00 hrs. (IST) on Tuesday, the 21st September 2021
and ends at 17:00 hrs. (IST) on Thursday, the 23rd September 2021. The remote e-voting module shall be
disabled by NSDL for voting thereafter.
The cut-off date to be eligible to vote by electronic means is Friday, the 17th September 2021.
Voting rights of members/ beneficial owners shall be in proportion to their shareholding in the paid-up equity
share capital of the Company as on the cut-off date.
Steps: Access to NSDL e-Voting system:
Step 1A: Login method for e-Voting for Individual shareholders holding securities in demat mode and
joining virtual meeting:
SEBI circular dated 9th December 2020 has allowed individual members to vote through their demat account.
Members are advised to update mobile number and email Id in their demat accounts in order to access the
e-Voting facility.

Type of Login Method

shareholders
AGM Notice

Individual NSDL - IDeAS Facility

Members/ 1. Members registered for IDeAS Facility:
Beneficial
a. IDeAS user can visit the e-Services website of NSDL Viz.
holders
https://eservices.nsdl.com.
maintaining
demat account b. At e-Services home page, click on the “Beneficial Owner” icon under “Login”
with NSDL. which is available under ‘IDeAS’ section.
c. Enter existing User ID and Password. After successful authentication, you will
be able to see e-Voting services under Value added services.
d. Click on “Access to e-Voting” and you will be able to see e-Voting page. Click
on Company Name or e-Voting service provider and you will be re-directed
to e-Voting website of NSDL for casting your vote during the remote e-Voting
period or joining virtual meeting & voting during the meeting.
2. Members not registered for IDeAS Facility:
a. Option to register is available at https://eservices.nsdl.com.
6 b. Select “Register Online for IDeAS Portal” or click at https://eservices.nsdl.
com/SecureWeb/IdeasDirectReg.jsp
c. Visit the e-Voting website of NSDL. Open web browser -
https://www.evoting.nsdl.com/
d. Once the home page of e-Voting system is launched, click on the icon “Login”
which is available under ‘Shareholder/Member’ section. A new screen will
open. Please enter your User ID (i.e. your sixteen digit demat account number
maintained with NSDL), Password/OTP and a Verification Code as shown on
the screen.
e. After successful authentication, you will be redirected to NSDL Depository site
wherein you can see e-Voting page. Click on Company Name or e-Voting
service provider and you will be redirected to e-Voting website of NSDL for
casting your vote during the remote e-Voting period or joining virtual meeting &
voting during the meeting.
6 THE UNSTOPPABLE
ENERGY SOLDIERS

3. Visit the e-Voting website of NSDL

Open web browser by typing the following URL: https://www.evoting.nsdl.com/
either on a Personal Computer or on a mobile. Once the home page of e-Voting
system is launched, click on the icon “Login” which is available under ‘Shareholder/
Member’ section. A new screen will open. You will have to enter your User ID (i.e.
your sixteen digit demat account number hold with NSDL), Password/OTP and a
Verification Code as shown on the screen. After successful authentication, you
will be redirected to NSDL Depository site wherein you can see e-Voting page.
Click on company name or e-Voting service provider i.e. NSDL and you will be
redirected to e-Voting website of NSDL for casting your vote during the remote
e-Voting period.
Individual 1. Members registered for Easi / Easiest:
Members/ a. The URL for users to login to Easi / Easiest are https://web.cdslindia.com/
Beneficial myeasi/home/login or www.cdslindia.com and click on New System Myeasi.
holders
b. Members to login with User Id and Password. Option will be made available to
maintaining
reach e-Voting page without any further authentication.
demat account
with CDSL c. After successful login of Easi/Easiest the user will also be able to see the E
Voting Menu. The Menu will have links of e-Voting service provider (“ESP”) i.e.
NSDL. Click on NSDL to cast your vote.
2. Members not registered for Easi/Easiest:

AGM Notice
a. Option to register is available at https://web.cdslindia.com/myeasi/Registration/
EasiRegistration
Alternatively, the user can directly access e-Voting page by providing Demat
Account Number and PAN No. from a link in www.cdslindia.com home page.
b. The system will authenticate the user by sending OTP on registered Mobile &
Email as recorded in the demat Account. After successful authentication, user
will be provided links for the ESP i.e. NSDL.
Individual a. You can also login using the login credentials of your demat account through your
Shareholders Depository Participant registered with NSDL/CDSL for e-Voting facility.
login through b. Upon logging in, you will be able to see e-Voting option. Click on e-Voting option,
their Depository you will be redirected to NSDL/CDSL Depository site.
Participants
c. After successful authentication, you can see e-Voting feature. Click on Company
(DP)
Name or e-Voting service provider i.e. NSDL and you will be redirected to e-Voting
website of NSDL for casting your vote during the remote e-Voting period or joining
virtual meeting & voting during the meeting. 7
Note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available
at above-mentioned websites.

Helpdesk
Individual Shareholders make seek help for any technical issues related to login through Depository i.e. NSDL
and CDSL.

Depository Helpdesk details

NSDL [email protected] / toll free no.: 1800 1020 990 and 1800 22 44 30
CDSL [email protected] 022- 23058738 or 022-23058542-43
 6 THE UNSTOPPABLE
ENERGY SOLDIERS
Step 1B: Login Method for other than Individual Demat account holders
1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL:
https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.
2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under
‘Shareholder/Member’ section.
3. A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code
as shown on the screen.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at
https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL e-services after using
your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.
4. Your User ID details are given below :

Manner of holding shares i.e. Demat Your User ID is:

(NSDL or CDSL) or Physical

a) For Members who hold shares in 8 Character DP ID followed by 8 Digit Client ID.
demat account with NSDL. For example if your DP ID is IN300*** and Client ID is 12******
then your user ID is IN300***12******.
AGM Notice

b) For Members who hold shares in 16 Digit Beneficiary ID

demat account with CDSL. For example if your Beneficiary ID is 12************** then
your user ID is 12**************

c) For Members holding shares in EVEN Number followed by Folio Number registered with the
Physical Form. Company
For example if folio number is 001*** and EVEN is 101456 then
user ID is 101456001***

5. Password details for shareholders other than Individual shareholders are given below:
a. If you are already registered for e-Voting, then you can user your existing password to login and cast
your vote.
b. If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’
which was communicated to you. Once you retrieve your ‘initial password’, you need to enter the
8 ‘initial password’ and the system will prompt you to change your password.
c. How to retrieve your ‘initial password’
(i) If your email ID is registered in your demat account or with the Company, your ‘initial password’
is communicated to you on your email ID. Trace the email sent to you from NSDL. Open the
email and open the attachment i.e. a .pdf file. The password to open the .pdf file is your 8 digit
client ID for NSDL account or last 8 digits of client ID for CDSL account or folio number for
shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.
(ii) If your email ID is not registered, please follow steps mentioned below in process for those
shareholders whose email ids are not registered.
6
6.
THE UNSTOPPABLE
ENERGY SOLDIERS
If you are unable to retrieve or have not received the “Initial password” or have forgotten your password:
a) Click on “Forgot User Details/Password?”(If you are holding shares in your demat account with
NSDL or CDSL) option available on www.evoting.nsdl.com.
b) Physical User Reset Password?” (If you are holding shares in physical mode) option available on
www.evoting.nsdl.com.
c) If you are still unable to get the password by aforesaid two options, you can send a request at
[email protected] mentioning your demat account number/folio number, your PAN, your name and
your registered address.
d) Members can also use the OTP (One Time Password) based login for casting their votes on the
e-Voting system of NSDL.
7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.
8. Now, you will have to click on “Login” button.
9. After you click on the “Login” button, Home page of e-Voting will open.
Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.

1. After successful login at Step 1, you will be able to see all the companies “EVEN” in which you are

AGM Notice
holding shares and whose voting cycle and General Meeting is in active status.
2. Select “EVEN” of “OIL AND NATURAL GAS CORPORAION LIMITED’’ for which you wish to cast your
vote during the remote e-Voting period and casting your vote during e-voting period/ the Annual
General Meeting.
3. Now you are ready for e-Voting as the Voting page opens.
4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number
of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when
prompted.
5. Upon confirmation, the message “Vote cast successfully” will be displayed.
6. You can also take the print-out of the votes cast by you by clicking on the print option on the
confirmation page.
7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
8. For joining virtual meeting, you need to click on “VC/OAVM” link placed under “Join General Meeting”.

General Guidelines for shareholders

9
1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned
copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen
signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail
to [email protected] with a copy marked to [email protected].
2. In case of any queries, you may refer the Frequently Asked Questions (FAQs) and e-voting
user manual available at the download section of www.evoting.nsdl.com or call on toll free no.:
1800 1020 990 and 1800 22 44 30 or send a request to Ms. Soni Singh, Assistant Manager at
[email protected]
 6 THE UNSTOPPABLE
ENERGY SOLDIERS
Process for those shareholders whose email ids are not registered with the depositories/ Company for
procuring user id and password and registration of e-mail id for e-voting for the resolutions set out in
this Notice:
Members may send a request to [email protected] for procuring user ID and password for e-voting:
1. In case shares are held in physical mode, please provide:-
• Name of Member and Folio Number,
• scanned copy of the share certificate (front and back),
• Self-attested scanned copy of PAN card, and
• Self-attested scanned copy of Aadhar Card.
2. In case shares are held in demat mode, please provide:-
• Name of shareholder & 16 digit DP ID and Client ID,
• client master or copy of Consolidated Account statement,
• PAN (self-attested scanned copy of PAN card), and
• Self-attested scanned copy of Aadhar Card.
AGM Notice

3. Individual shareholders holding securities in demat mode, you are requested to refer to the login
method explained at Step 1A i.e. Login method for e-Voting and joining virtual meeting for Individual
shareholders.

10
6 THE UNSTOPPABLE
ENERGY SOLDIERS
INSTRUCTIONS FOR MEMBERS FOR ATTENDING AGM THROUGH VC/OAVM AND
E-VOTING DURING AGM

• The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote
e-voting.
• Member will be provided with a facility to attend the AGM through VC/OAVM through the NSDL e-Voting
system.
• Members may access by following the steps mentioned in the Notice (at Step 1A for login) for access to
NSDL e-Voting system. After successful login, you can see link of “VC/OAVM link” placed under “Join
General meeting” menu against company name. You are requested to click on VC/OAVM link placed
under Join General Meeting menu. The link for VC/OAVM will be available in Shareholder/ Member login
where the EVEN of Company will be displayed. Please note that the members who do not have the User
ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by
following the remote e-Voting instructions mentioned in the notice to avoid last minute rush.
• Members are encouraged to join the Meeting through Laptop for better experience.
• Further Members will be required to allow Camera and use Internet with a good speed to avoid any
disturbance during the meeting.
• Please note that Participants joining from Mobile Devices or Tablets or through Laptop connecting via

AGM Notice
Mobile Hotspot may experience Audio/Video loss due to fluctuation in their respective network. It is
therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.
• Shareholders who would like to express their views/have questions may send their questions in
advance mentioning their name, demat account number/folio number, email id, mobile number at
([email protected]) on or before 15th September 2021. The same will be replied by the Company suitably.
• Members who wish to express their views/have questions during the AGM may register themselves as a
Speaker by sending their request only from their registered email address in advance from Friday, the
10th September 2021 to Wednesday, the 15th September 2021 at [email protected] by providing
following details:
Name
DP ID and client ID / folio No.
Mobile No.

• Members who have registered as a Speaker will only be allowed to speak during the AGM. The Company
reserves the right to restrict the number of speakers depending on the availability of time for the AGM. 11
• The Scrutinizer shall immediately after the conclusion of voting at the AGM count the votes cast at the
AGM and thereafter, unblock the votes cast through remote e-voting in the presence of at least two
witnesses who are not in the employment of the Company. The Scrutinizer shall submit a consolidated
Report of the e-voting, not later than two working days from the conclusion of the AGM, to the Chairman
of the Company. The Chairman or any other person authorised by the Chairman shall declare the
voting results.
• E-voting results along with the Scrutinizer’s Report shall be placed on the Company’s website
www.ongcindia.com and also on the website of NSDL i.e. https://www.evoting.nsdl.com after the results
so declared are communicated to the National Stock Exchange of India Limited and BSE Limited.
• Members who need assistance for joining/during AGM may call at toll free no.: 1800 1020 990 /
1800 22 44 30 or contact Ms. Soni Singh, Assistant Manager at [email protected].
ANNUAL REPORT
2020-21
India today spends more than `12 trillion annually on energy import. For
India's progress, the country's energy independence is the need of the
hour, necessary to make an Atmanirbhar Bharat. Therefore, today India
has to take a resolution that it will become energy independent before
the completion of 100 years of independence and for this our roadmap
is very clear.

Narendra Modi
Prime Minister
The year that was, posed a
challenge to all of humanity.
The world adapted its ways
in every conceivable manner
and otherwise. We, at ONGC
were no different; as
vulnerable as anyone else
but determined to carry on
with the work at hand. After
all, the Nation was still
looking up to us, more than
ever. The Energy Champions
stayed on the job and kept
the nation energized, on the
road to recovery.
 THE UNSTOPPABLE ANNUAL REPORT
PROJECTS
SNAPSHOT
ENERGY SOLDIERS 2020-21

2020-21 Total Projects Completed - 3 (1 Development, 2 Infrastructure)

Expenditure - `33,326 Million

SOLAR ENERGY
INITIATIVES
ONGC’s PRODUCTION Added 6.09 MW of Solar capacity in 2020-21
Total installed capacity - 31 MW
Total Oil & Gas production including JV: 45.350 MMTOE Projects of 20.2 MW capacity under execution
(Oil: 22.533 MMT, Gas: 22.816 BCM)
Value Added Products: 3120 KT

Performance at a Glance
REDUCING CARBON
EXPLORATION FOOTPRINTS
a. 15 Clean Development Mechanism (CDM)
a. Discoveries made-10 (3-onshore, 7-offshore) Projects registered with United Nations
b. Discoveries monetized-12 with Certified Emission Reduction of 2.2 Million CO2e
c. 2D Data Acquired: 1,478 LKM b. Energy cum Technical Audits conducted - 284
d. 3D Data Acquired: 7,138 SKM c. LED lights installed - 30,000 (Total 0.31 Million)
d. Energy saving - 59 MU (`413 Million)

DRILLING
Wells drilled: 480 GREAT PLACE TO WORK
2 a. 28,479 proud ONGCians as on 3
31st March, 2021
b. Certified Great Place to Work Organization
FINANCIAL HIGHLIGHTS c. ‘Excellent’ rating in Corporate Governance
by DPE
a. Revenue: `681,411 Millon d. Leader in CSR spends in the country:
b. PAT: `112,464 Millon (`5,530 Million in FY’21)
c. Capex: `268,593 Millon
 THE UNSTOPPABLE ANNUAL REPORT
SNAPSHOT
ENERGY SOLDIERS 2020-21
ONGC gives India its 8 Producing Basin – Bengal Basin
th

2020-21 With the monetization of Asokenagar-1 discovery, the Bengal Basin became the eighth
basin of India from which hydrocarbon has commercially been produced. This has
resulted in upgradation of Bengal basin to Category-I basin.

Hon’ble Minister for Petroleum & Natural Gas and Steel, dedicated the Bengal basin,
the 8th producing basin of India, to the nation on December 20, 2020 at Asokenagar in

ENERGY
West Bengal.

With this, ONGC has discovered seven out of the eight producing basins of the country.

SECURITY
IN SECURE

Performance at a Glance
HANDS

4 5
 THE UNSTOPPABLE ANNUAL REPORT
SNAPSHOT
ENERGY SOLDIERS 2020-21

2020-21 Formation of wholly-owned subsidiary for Gas

Business
ONGC Board has approved creation of a new wholly-owned subsidiary company for
Gas and LNG Business value chain subject to necessary approvals.
Focus on sourcing, marketing and trading of Natural Gas, LNG, Hydrogen enriched
CNG(HCNG), Gas to Power business, bio-energy/biogas/biomethane/other biofuels
business.

GREEN GAIN
ONGC acquires 5% equity in Indian Gas Exchange
Ltd (IGX)

FOR ENERGY
This partnership could play a pivotal role in achieving the Government of India’s vision
for increasing the share of natural gas from 6% to 15% in energy basket.

ONGC to develop India’s first Geothermal Energy

CHAIN

Performance at a Glance
Pilot project in Ladakh
A Memorandum of Understanding (MoU) has been signed by ONGC Energy Centre
(OEC) with the Union Territory of Ladakh and Ladakh Autonomous Hill Development
Council, Leh on 06.02.2021.

MoU for cooperation in Bioremediation and

Microbial Enhanced Oil Recovery
ONGC has entered into an MoU with ONGC Teri Biotech Limited (OTBL) for cooperation
in the field of Bioremediation Technology and Microbial Enhanced Oil Recovery (MEOR)
etc. initially for a period of five years.

ONGC signs MoU for cooperation in Gas Hydrate

Research
6 The MoU was signed between ONGC and The Skolkovo Institute of Science and 7
Technology (Skoltech), Russia in March 2021 for Collaborative Studies for a period of
five years to establish cooperation in the Gas Hydrate Research & Technology
applicable to Indian Basins.
 THE UNSTOPPABLE ANNUAL REPORT
SNAPSHOT
ENERGY SOLDIERS
Maintained critical oil and gas supply
2020-21

2020-21 Despite all challenges, ONGC has ensured continuous supply of oil and gas to the
country.

Supporting communities during pandemic

ONGC has undertaken 380 projects worth `298.4 million to tackle COVID -19 outbreak
in operational areas benefiting 4.46 million people.

Operation Nishtha (Crew change exercise for uninterrupted operations)

ONGC has undertaken a massive exercise to replace its crew in offshore and onshore

UNSHAKEABLE
fields. ONGC obtained permission from DGCA to use chartered flights to transport
crew from/to work centres for crew change over and ensured uninterrupted

COMMITMENT
operations.

Performance at a Glance
ONGC supplies NATO Grade HSD to Indian Navy

TO SERVE during Lockdown

ONGC’s Hazira plant supplied 3300 KL volume of NATO Grade HSD to Indian Navy
during COVID-19 pandemic on 9th May 2020 to meet an urgent requirement for Indian
Navy to supply special NATO grade HFHSD in view of Samudra Setu mission to
repatriate expatriates stranded in neighboring countries due to the COVID-19
pandemic.

8 9
 THE UNSTOPPABLE ANNUAL REPORT
SNAPSHOT
ENERGY SOLDIERS
ONGC in S&P Global Platts Top
2020-21
250 Energy
2020-21 Companies 2020
ONGC has been ranked No.11 in S&P Global Platts Top 250 Global Energy Company
Rankings 2020.

ONGC in Forbes Global 2000 list 2021

Forbes has ranked the company 13th largest in India and 665th worldwide in Global 2000
list. This is based on sales, profits, assets and market value.

ONGC in Fortune Global 500 list 2021

ONGC is ranked 243rd globally and 4th in India in 2021 ranking of Fortune Global 500 list.

RECOGNITION ONGC in Forbes list of World’s Best Employers 2020

Performance at a Glance
FOR
ONGC has been ranked 377th in Forbes Global list of World’s Best Employers 2020.

ONGC receives Award for 'Best Overall Performance

DISTINCTION for Upstream Sector' by PCRA

ONGC has been conferred with the ‘Best Overall Performance Award for Upstream Sector’
at Saksham-2020.

ONGC conferred Rashtriya Khel Protsahan Puruskar;

4 ONGCians receive Arjuna, Dhyanchand Awards
The President of India, Shri Ram Nath Kovind conferred Rashtriya Khel Protsahan
Puruskar in the category of “Encouragement to sports through Corporate Social
10 Responsibility”. Three ONGCians Mr Vishesh Bhriguvanshi (Basketball), Mr Ishant 11
Sharma (Cricket) and Ms Madhurika Patkar (Table Tennis) received Arjuna awards &
Mr Manpreet Singh received the Dhyanchand Award in Kabaddi from the President for
their impressive performance in their respective game disciplines.

IPSHEM bags Global Environment Award 2020

IPSHEM, Goa has received prestigious “Energy & Environment Foundation Global
Environment Award 2020” under Platinum category organized by The Energy and
Environment Foundation.
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS JOINT VENTURES 2020-21

OPaL
• One of the single largest dual-feed petrochemicals complex in South Asia

GROUP
• 1.1MMTPA Ethylene cracker
• Introduced PP Fibre & Filament grade "OPaLene RH38" for mask/PPE kits application

OTPC
• Natural Gas based 726.6 MW Combined Cycle Gas Turbine Thermal Power Plant.
• Dividend paying standalone power company in the country reported highest PAT of
`2,206 million in FY’21
SUBSIDIARIES • Largest Indian Clean Development Mechanism (CDM) project with 1.6 million
Registered CERs

OTBL
ONGC Videsh
• Promote and develop effective technologies for bio-remediation of

Performance at a Glance
• Overseas E&P arm with 35 projects in 15 countries soil and enhanced oil recovery
producing about 13 MMTOE of oil and gas in FY’21
• Production growth of about 45 percent over last 6 years
IGGL
• Extending the gas network in country’s North-East region with the
1656 km long North East Gas Grid
HPCL
MSEZ
• India’s second largest oil marketing company with over 18,600 retail outlets
• Highest ever Profit After Tax (PAT) of `106,639 million in FY’21
• MSEZ is a Special Economic Zone in Mangalore for the development of
necessary infrastructure to felicitate and locate Industrial establishments

MRPL Dahej SEZ Limited

• DSL, a 50:50 JV of ONGC along with Gujarat Industrial
• 15 MMTPA state-of-the-art refinery at single location Development Corporation (GIDC), was formed and incorporated in
• Registered a positive GRM of US$ 3.71/bbl during FY’21 2004 for establishing a multi-product SEZ at Dahej
12 13

ASSOCIATES
PMHBL

• Transportation of petroproducts from MRPL refinery to

PLL
various parts of Karnataka State
• Associate in LNG sector with 17.5 MMTPA LNG terminal at Dahej,
Gujarat and another 5 MMTPA terminal at Kochi, Kerala

Rohini Heliport Limited

Mirror Company of Pawan Hans Limited
 THE UNSTOPPABLE
ENERGY SOLDIERS

Chairman’s
Message

Your Company is now

more deeply committed
to work towards the
14 energy independence
of the country while
continuing to generate
more and more value
for its Shareholders
 ANNUAL REPORT
2020-21
Dear Shareholders,
A year back when this message went out, the world business-critical activities, while ensuring strong
was just months into a terrain that was entirely adherence to COVID-related SOPs. Our massive crew
unfamiliar – the COVID-19 pandemic was at the change operation at both our offshore and onshore
front and centre of our collective consciousness as sites best exemplified that balanced approach.
its emergence and global spread which disrupted
Health, Safety and Environment (HSE) is fundamental
all economies, humanity and pushed the ‘extremes’.
to the conduct of our business and ONGC attaches
Now, after more than a year, the pandemic which is
highest priority to occupational health, safety
still around has already completely redefined what
and protection of environment in and around its
new normal is and, however difficult it is, we will have
operational areas. The recent incident during cyclone
to learn to live with it.
Tauktae in western offshore was a very unfortunate
More than anything else, we realize there is just no one. While we deeply mourn the loss of lives, it
going back to as things were – and, although all of has further strengthened our resolve and made
us have suffered during this painful period, for some, us revisit our internal Safety Management System
this pandemic has been a period of acute agony and comprehensively. Several actions have been initiated

Chairman’s Message
deep personal loss. Our feelings go out to all those in this regard including revisiting our emergency
who have lost someone close to them. Within our response plans and strengthening our marine
organization we also lost some of our beloved fellow operations to handle such unprecedented cyclonic
colleagues who succumbed to the deadly virus. We situations. Your Company is also in the process
salute each of our brave energy soldiers for their of benchmarking its safety standards to the best
supreme sacrifice. practices in the E&P industry.

India, a major lynchpin of the global economy and Beyond delivering consistently in its business, what
an energy powerhouse, unfortunately had to pass further marks out ONGC is its worthwhile contributions
through unprecedented sufferings especially during beyond its business mandate, specifically in times
the ‘second wave’ of the pandemic. Although, general of crisis and national emergencies. In the last one
threat perception today is a shade lower on account year, when the pandemic ravaged major parts of our
of substantially lower case-counts and steadily country, your Company, in addition to providing those
expanding vaccine coverage, we must remain ever vital volumes of oil and gas that supported domestic
vigilant to combat the virus and to avert another brutal economy recovery efforts, also doubled down on its
surge of the infections. Virus is still lurking around and CSR efforts, focusing largely on Healthcare. Specific to
may raise its ugly head with similar virulence if we COVID-19, your Company contributed a sum of `3000
15
lower our guard. Million to the PM Cares Fund and undertook CSR
projects worth almost `300 Million thereby benefitting
As the country’s premier energy explorer, ONGC is
over 44 lakh people across the country during FY’21.
steadfastly committed to its overarching objective of
During the current fiscal i.e. FY’22, as the country was
contributing to country’s energy security. Although
in the grip of debilitating second wave, ONGC picked
providing energy is our raison d’etre, these are truly
up an exclusive gauntlet of responsibility to support
exceptional times, so we cannot but be more humane
the communities to tide over the oxygen crisis. ONGC
and reasonable in the manner we choose to carry on
is setting up 15 medical grade oxygen generation
our operations. Our COVID-Response was premised
plants at various parts of the country to strengthen
on preserving ‘Men, Material and Resources’.
medical oxygen infrastructure. ONGC is also
Resource optimization was carefully planned for all
 THE UNSTOPPABLE
ENERGY SOLDIERS
procuring one lakh oxygen concentrators on behalf Coming to performance, FY’21 numbers were
of Govt. of India, encouraging a large number of affected largely due to pandemic related stresses.
domestic vendors and boosting local manufacturing. Despite the disruptions, your Company as well as
ONGC is also procuring and providing Cold Chain ONGC Group entities recorded important milestones
Logistics Equipment for COVID-19 vaccination to during the year, reaffirming our pre-eminent stature in
several states through ONGC Foundation. the domestic energy space. Also, during these trying
times, despite the several roadblocks, ONGC brought
Dear shareholder, the global energy landscape
online, the country’s eighth producing basin – the
is transitioning at a pace faster than anticipated.
Bengal Basin – with the flow of oil from Ashokenagar-1
Multiple forces are at play, therefore there are wide-
well. Exploration continues to make steady progress
ranging uncertainties on the shape of things to come
despite depressed and volatile energy prices. You
within the industry – be it global consensus on climate
will be happy to know that during FY’21, ONGC made
change and sustainability, energy efficiency, growing
10 new discoveries and could successfully monetize
consumer awareness, volatility in international trade
12 discoveries, of which 2 are from FY’21 itself. While
relations and technological breakthroughs. While this
we have consistently replaced more than what we
is a journey that will require patience, by the dint of
produced consecutively for the last 15 years, fast-
strength and clarity in our business strategies today
tracked monetization of hydrocarbon discoveries in
will enable us to succeed in the energy transition, as
the recent years, our track record lends credence to
we see this transition as part of the inevitable evolution
the improving commerciality of ONGC’s exploratory
of the energy sector. Our goal is to become a more
efforts. As a National Oil Company (NOC), besides
valuable company for its shareholders and deliver
the prolific and producing basins, we are also
more benefits for the society at large. However, it is
expanding our exploratory footprints in the virgin
critical that the companies manage their operations in
or under-explored areas and data gathered from
most sustainable and energy efficient manner.
such pursuits will boost the nation’s hydrocarbon
The energy industry remains vital to the recovery of prospects. To further expand our exploratory
global economic activity in the aftermath of pandemic- footprints, we are bidding aggressively in the OALP
induced recession. Oil and gas has for long been vital to bid rounds. In the recently concluded OALP-V round,
forging modern societies and economies and they will your Company acquired 7 of the 11 blocks on offer. We
remain key sources of energy as we start the process are hopeful of unlocking new territories and thereby
of rebuilding and a long transition. Our business further bolstering the potential of more indigenous
models will now have to be safer, more sustainable hydrocarbon supplies down the road.
and less energy intensive. Sustainability needs to
Domestic oil and gas production (including JV’s
16 be a central tenet of all future energy business plans
production) stood at 45.35 MMTOE versus 48.25
and strategies. While ONGC has always been guided
MMTOE in the preceding fiscal. The Company
by the principles of energy equity and sustainability,
remains positive of a turnaround in output in FY’22 as
as part of our long term strategic roadmap, Energy
the threat of further disruptions mirroring the one in
Strategy 2040, we are going to further sharpen our
the first half of 2020 has abated a bit and the industry
focus on climate-related aspects of our operations
too readjusts its modus operandi to this ‘new normal’
in order to remain relevant in tomorrow’s energy
of sustaining operations and doing businesses.
ecosystem. To achieve that vision, we are extending
Looking forward, by the year 2024 we are projecting
our footprints thoughtfully and meaningfully beyond
hydrocarbon domestic production in excess of 60
our core E&P activities – at the same time, we are
MMTOE with the portfolio clearly tilted in favour of
also taking all necessary measures to make our core
cleaner sources, driven by strong output from our
activities more sustainable and less energy-intensive.
 ANNUAL REPORT
2020-21
KG deep-water field in the Eastern Offshore as well The refiner also added 2,158 new retail outlets which
as Heera in the shallow waters of Western offshore. is highest ever in any particular year, totalling retail
Currently, 15 major projects are under implementation outlets to 18,634. HPCL also commissioned 112 new
with a total projected cost of around `605,015 Million LPG distributorship during the FY’21 taking number
with envisaged gain of more than 110 MMTOE. of total distributorship to 6,192 as of 31st March 2021.
During the FY’21, HPCL achieved its highest ever Net
In view of increasing significance of gas in the future
Profit of `106,639 Million on the back of improved
energy mix, your Company has acquired 5 percent
refinery margins helped by inventory gains and
stake in the India Gas Exchange, India’s first Gas
robust operational performance. HPCL has drawn
Exchange which provides automated platform for
up detailed plans for future expansions in both core
trading of natural gas. The Board has also approved
and non-core areas; some key projects in the pipeline
creation of a new wholly owned subsidiary Company
are Vizag refinery modernization, green-field refinery
for Gas & LNG business value-chain, subject to further
cum Petchem complex in Rajasthan and LNG re-gas
necessary approvals. However, the dismally low
terminal at Chhara, Gujarat.
domestic gas prices continue to dent the profitability
of our gas business. It is however believed that these Our other refiner, MRPL, also did well despite the
early choices will improve optionality and future pay year-long turmoil in its global export markets due to

Chairman’s Message
off as the energy transition takes off. the pandemic. Its throughput for the year was 11.50
MMT, and its standalone turnover was `510,192
Despite a year of disruptions and sub-optimal energy
Million. MRPL is focused on setting up and expediting
prices, your Company returned a profit in each of
own retail outlets. It has also partnered with the OMCs
the individual quarters. Our gross revenue stood at
to increase sale of products in the country, thereby
`681,411 Million and we registered a net profit of
offsetting its reliance on foreign markets to an extent.
`112,464 Million despite incurring losses in our gas
MRPL, after having acquired 49 percent of ONGC’s
business for the fourth successive year. ONGC’s total
stake, has assumed full ownership of OMPL during
dividend pay-out would be `45,289 Million at `3.60
the year thereby establishing synergistic value
per share (72 percent) with pay-out ratio of 40.27%.
addition across the product chain.
We also continue to maintain stable CAPEX program.
CAPEX for FY’21 was `268,593 Million while planned In the petchem vertical, OPaL is performing very well
outlay for FY’22 stands at `298,000 Million. with around 90% capacity utilisation during FY’21.
Revenue from the operations stood at `114,860 Million.
ONGC Videsh, our overseas arm, made a significant
Despite global slowdown in petchem markets caused
oil strike in its onshore block CPO-5 in Colombia
by the pandemic, it is heartening to share that OPaL
during the FY’21. Oil and Gas production from ONGC
has posted positive PAT in the last quarter of FY’21. 17
Videsh was 13.04 MMTOE in FY’21 despite the output
cuts in our projects in UAE, Russia and Azerbaijan as OTPC, our power venture in the country’s North-
part of the OPEC+ Group. Turnover and Net Profit of east region, is meeting about 35% of total power
ONGC Videsh during the FY’21 was `119,558 Million requirements of the North-eastern states and has
and `18,910 Million, respectively. recorded total income of `16,456 Million while netting
a PAT of `2,206 Million in FY’21.
Performance across the value-chain for ONGC-
group entities has been impressive during the year. Looking ahead, your Company is committed to
Our subsidiary, HPCL registered a throughput of sustaining its operational excellence and material
16.42 MMT with a capacity utilization of more than growth in its core E&P business and also expanding
100 percent in spite of overall demand contraction. its non-E&P investments through its Group entities
 THE UNSTOPPABLE
ENERGY SOLDIERS
collaborations with other leading players in the Accordingly, your Company has been continuously
industry. Our long-term blueprint – Energy Strategy rated “Excellent” grade for its compliances with
2040 - articulates this aspiration. Given that the the DPE Guidelines on corporate governance. As
transformation will take place within the context of the country’s foremost energy explorer and among
sustainability, technology will be the most critical lever the biggest diversified energy conglomerates, we
and safety its vital planks. reaffirm our commitment to helping secure India’s
energy supplies safely and sustainably with highest
Your Company is also pursuing opportunities in
standard of corporate governance, and adhering to
the field of Renewables in India and abroad. We
ethics & transparency, for years to come to advance
added another 6 MW of solar capacity taking our
nation’s growth.
total installed capacity in excess of 30 MW. A study
for pilot project in Offshore Wind has already been I also place on record my deepest admiration for
commissioned for assessing the opportunities in this our employees. Throughout this challenging year,
niche segment. We have also taken up the country’s ONGCians - the brave energy soldiers have shown
first geothermal energy project in Ladakh. Our total characteristic determination and delivered beyond
installed capacity in renewables space has exceeded their mandate despite enduring significant personal
325 MW and that we have a long distance to cover sufferings. Such superlative efforts were the basis of
as we are targeting 10 GW of installed renewable ONGC’s sustenance in these exceptional times and
capacity by 2040. it is their commitment that allows us to aim higher
every time.
You will be happy to know that concerted actions over
the years to optimise resource and energy usage within Finally, dear Shareholders, the Company is grateful
the Company have positively impacted in the form of to you for your continued support and confidence in
reduced carbon foot print. Emission intensity (CO2 our endeavours. Our lasting association has endured
emission per barrel of oil produced) of the business the test of times and has proved to be an invaluable
has decreased by 12 percent in the last five years asset. Fuelled by this mutual trust, your Company
and the gains will only further intensify. The Company is now more deeply committed to work towards the
is also undertaking a thorough assessment of its energy independence of the country while continuing
Scope 1 and 2 emissions to identify potential savings to generate more and more value for its shareholders
opportunities through an independent assurer. These in coming days through several verticals of energy.
are early signs of your Company pivoting towards a
I hope all of you take good care of yourself and stay
more sustainable and value-accretive energy entity
safe, as collectively we put together the building
while remaining abundantly relevant to the country’s
blocks of a new energy era for the country.
18 evolving energy ecosystem.

Your Company is committed to conduct the business

in a legal, ethical and transparent manner and Jai Hind!
observes highest standards of corporate governance.
Sd/-
Subhash Kumar
Chairman & Managing Director
 ANNUAL REPORT
2020-21

Chairman’s Message
19

ONGC women officers proudly waving the tricolour at the PLQ platform on the East Coast
of India
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS
Vision Mission 2020-21

To be a global leader in integrated World Class

energy business through sustainable • Dedicated to excellence by
growth, knowledge excellence and leveraging competitive advantages
in R&D and technology with involved
exemplary governance practices.
people.
• Imbibe high standards of business
ethics and organizational values.
• Abiding commitment to safety,
health and environment to enrich
quality of community life.
• Foster a culture of trust, openness
and mutual concern to make
working a stimulating and

Performance at a Glance
challenging experience for our
people.
• Strive for customer delight through
quality products and services.

Integrated in Energy Business

• Focus on domestic and international
oil and gas exploration and
production business opportunities.
• Provide value linkages in other
sectors of energy business.
• Create growth opportunities and
maximize shareholder value.

20 21
Dominant Indian Leadership
• Retain a dominant position in the
Indian petroleum sector and
enhance India’s energy availability.

Carbon Neutrality
• Strive to reduce CO2 emissions
across the activity chain with the
objective of achieving carbon
neutrality.
 THE UNSTOPPABLE Crude Oil Natural Gas ANNUAL REPORT
ENERGY SOLDIERS Production (MMT) Production (BCM) 2020-21
25.534 25.435 24.231 25.810
23.353 22.533 24.610 24.896
23.270 22.816

3.130
3.285

1.063

1.042
3.120

1.126
2.639

2.260

1.182

0.720
Operational

24.747
22.305
22.249

23.853
23.484
21.111

20.714

20.273

22.096
22.088
Highlights FY’17 FY’18 FY’19 FY’20 FY’21 FY’17 FY’18 FY’19 FY’20 FY’21

FY’21
ONGC Standalone JV ONGC Standalone JV

VAP Production Wells Drilled

(KT) (Nos)

Performance at a Glance
3,641 501 503 516 500
480
3,548

3,386

3,235

411
384
401

394

380
3,120

119

106
105

100
100
FY’17 FY’18 FY’19 FY’20 FY’21 FY’17 FY’18 FY’19 FY’20 FY’21

Exploratory Development

Reserve & Contingent Reserve Accretion (2P)

Resource (3P) MMTOE
22 23
1403
1380

67.83
64.32 63.02
818 810 53.21
842

778
811

50.31

579 577 609

428

432

420
569

448
561

417
419
390

378

358

160 160 161

Reserve CR Reserve CR Reserve CR
FY’17 FY’18 FY’19 FY’20 FY’21
FY’17 FY’18 FY’19 FY’20 FY’21

Oil (MMT) Gas (BCM)

Note - FY’19 onwards, ONGC reports its reserve as per PRMS standard wherein reserves
are split into Reserve & Contingent Resource (CR)
 THE UNSTOPPABLE Sales Income Dividend ANNUAL REPORT
ENERGY SOLDIERS (` in Million) (` in Million) 2020-21
1,092,999
84,699 88,062
957,014 77,641
845,802

Financial
774,895 62,901
678,909
45,289

Highlights FY’17 FY’18 FY’19 FY’20 FY’21 FY’17 FY’18 FY’19 FY’20 FY’21

FY’21
Net Profit Capex

Performance at a Glance
(` in Million) (` in Million)
267,646 729,016

199,453
179,000
134,637
112,464 280,064 294,498 295,385 268,593

FY’17 FY’18 FY’19 FY’20 FY’21 FY’17 FY’18 FY’19 FY’20 FY’21

Note - In FY’18, Capex includes acquisition cost of HPCL and

GSPC block.

24 25
Contribution to Exchequer Net Worth
(` in Million) (` in Million)
518,714 2,045,586
2,017,896
387,341 411,019
376,088
1,933,847 1,930,948
260,773
1,855,384

FY’17 FY’18 FY’19 FY’20 FY’21 FY’17 FY’18 FY’19 FY’20 FY’21
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Board of
Directors

Performance at a Glance
26 27
 Board of THE UNSTOPPABLE
ENERGY SOLDIERS
Directors
Shri Subhash Kumar, Director (Finance), ONGC has assumed the
additional charge of Chairman & Managing Director (CMD) of Oil and
Natural Gas Corporation Limited (ONGC) w.e.f. 01-04-2021.
Shri Subhash Kumar is also the Chairman of ONGC Group of
Companies comprising of subsidiaries-ONGC Videsh Limited,
Mangalore Renery and Petrochemicals Limited (MRPL), ONGC
Mangalore Petrochemicals Ltd (OMPL), Petronet MHB Ltd (PMHBL)
and Joint Ventures- ONGC Petro-additions Limited (OPaL), ONGC
Tripura Power Company Ltd (OTPC) and Mangalore SEZ Ltd (MSEZ).
Subhash Kumar Shri Kumar is an industry veteran with over 36 years of professional
Chairman & Managing Director experience in diverse activities across the Exploration & Production
(E&P) value-chain. He joined ONGC in 1985 as a Finance and
Accounts Ofcer. Shri Kumar grew up along the hierarchy and served
in different capacities in ONGC and the Group Companies. During his tenure with ONGC Videsh, Shri Kumar was
associated with key acquisitions and expansion of the company's footprint from a single asset company in 2001
into a company with a global presence. He played a key role in the evaluation and acquisition of several
overseas assets.
He has served as the Chief Financial Ofcer (CFO) of Mansarovar Energy Colombia Limited, a 50:50 joint venture
of ONGC Videsh and Sinopec of China from September 2006 to March 2010. Thereafter, he had a long stint at
ONGC’s overseas arm ONGC Videsh from 2010 to 2015 where he successfully steered company’s Business
Development, Finance, Budget & Treasury Planning and Portfolio Management Groups.
Shri Kumar joined back ONGC in July 2016 as the Chief Commercial and Head Treasury, and played a key role in
evaluation, negotiation, and concluding outstanding issues pertaining to the organization. During 2017,
Shri Subhash Kumar also served a brief stint with Petronet LNG Limited as its Director (Finance).
Shri Subhash Kumar was appointed as Director (Finance) of ONGC in January 2018. Shri Kumar has also served as
Director on the Board of ONGC Group Companies viz. MRPL, HPCL, PMHBL, OTPC and OPaL.Shri Subhash Kumar
has championed the issues relating to various JVs and group entities at the Board level. He has successfully led the
transformation of JVs and group companies into a cohesive group, implemented an entity-specic action plan, resulting
in a signicant increase in their efciency and contributions to the ONGC Group.
28 Shri Kumar is also President of Global Compact Network India (GCNI), the Indian Local Network of the United
Nations Global Compact (UNGC), which has been providing a robust platform for Indian businesses, academic
institutions and civil society organizations to embrace the Ten Principles of Global Compact Network, United
Nations.
Shri Subhash Kumar is a Fellow Member of the Institute of Cost Accountants of India and Associate Member of
Institute of Company Secretaries of India. He is an alumnus of Panjab University Chandigarh, from where he
obtained his Bachelor’s and Master’s degrees in Commerce with Gold Medal. An avid sportsperson and tness
enthusiast, Shri Kumar has a keen interest in Golf and Badminton.
 ANNUAL REPORT
2020-21
Dr. Alka Mittal joined the Board of ONGC as Director (HR) in November
2018 after having distinguished herself in diverse roles and challenging
assignments, and has over 36 years of extensive experience in the
Company. She is the rst woman Functional Director of ONGC in its
history.
A leader with a mission, Dr. Mittal has driven a number of strategic and
impactful human resource programmes and initiatives in the Company,
with focus on adopting best-in-class HR practices towards making
ONGC a best place to work and nurturing a generation of dedicated
Dr. Alka Mittal energy soldiers in India. Dr. Mittal has also steered ONGC to become
Director (HR) one of the top companies in the country in the area of CSR, with focus
on impactful projects to support social infrastructure and build
sustainable communities.
Dr. Mittal is a Member on the Boards of Hindustan Petroleum Corporation Limited and ONGC Mangalore
Petrochemicals Limited as ONGC Nominee Director. She is Member of Governing Council and the acting CEO of
Hydrocarbon Sector Skill Council under the aegis of Ministry of Petroleum & Natural Gas, which is focused on skill
development and training needs in Oil & Gas sector. She is also on the Board of Governors of IIM, Trichy and RGIPT,
Jais, Amethi.
Dr. Mittal is closely associated with United Nations Global Compact Network India and is a Special Invitee to the
Governing Council, as well as Chair of Sub-Committee of GCNI. She is also actively involved with various national

Performance at a Glance
and international professional forums and bodies dedicated to the cause of Human Resource Management and
empowerment of women. She has a special penchant for training and mentoring. She has trained more than 12,000
young Graduate Trainees of ONGC since 2001.
Dr. Mittal is a post graduate in Economics, MBA (HRM) and a Doctorate in Commerce and Business Studies in the
area of “Corporate Governance”.

Shri Rajesh Kumar Srivastava is the Director (Exploration) of the

Company w.e.f 02.08.2019. He is also holding additional charge of
the post of Director (Offshore) w.e.f. 03.05.2021. Shri Srivastava
acquired the Master of Science (Geology) Degree from Lucknow
University and Master’s Degree in Engineering Geology from Indian
Institute of Technology, Kanpur. Shri Srivastava joined ONGC as
Geologist in 1984 at Krishna Godavari Basin, Rajahmundry. He is a
team player and a visionary.
With over 36 years of experience, Shri Srivastava is an expert in
Rajesh Kumar Srivastava upstream hydrocarbon exploration from well site operations,
Director (Exploration) &
Director (Offshore) (Additional Charge)
development geology, seismic data interpretation to monitoring and 29
planning of exploration.
Shri Srivastava began his career as an Operation Geologist from
geologically complex KG-PG Basin. At Institute of Reservoir Studies, Ahmedabad he was considered as one of the
best hands in the trade of Reservoir Modelling for preparation of eld development plans, simulation studies for
production forecasts and techno-economic evaluation of prospects. He is credited to have introduced the art/
science of Geocellular Modeling in ONGC, Neelam being the rst full-eld ne scale Geocellular Model for dynamic
modelling for redevelopment.
During his tenure at Exploration and Development Directorate, he was closely associated with the exploration and
development activities of Assam & Assam-Arakan Basin, MBA Basin and Krishna-Godavari Basin and Cauvery Basin.
He played a key role in the formulation of ‘Hydrocarbon vision-2030 for North East India’ driven by Ministry of
Petroleum and Natural Gas. He has also evaluated several exploration and development blocks of Egypt & Sudan.
As an acknowledgement for his contributions towards eld development and hydrocarbon exploration,
Shri Srivastava was honoured with the National Mineral Award in the year 2009.
Shri Srivastava is also Chairman of ONGC TERI Biotech Limited and Director on the Board of ONGC Tripura Power
Company Limited & Pawan Hans Limited. He has several publications to his credit.
 THE UNSTOPPABLE
ENERGY SOLDIERS01-04-2020.
Shri Om Prakash Singh is the Director (T&FS) of the Company w.e.f.
A Mechanical Engineer with more than 33 years of
experience, Shri Singh has built a deep industry understanding and
proven management experience across the technical and commercial
roles he undertook during his career.
Shri Singh has a distinguished track record as a drilling engineer and
has demonstrated dynamic leadership and vision, as he progressed
through various roles within the company. He is well-versed with
national and international Exploration and Production business and
Om Prakash Singh carries an extensive experience of offshore and onshore operations.
Director (T&FS) Shri Singh has an open-minded and forward-looking approach, with a
rm belief in team-work.
He has a vast industry knowledge and global business experience. He
has played major roles in handling the challenging deep-water drilling project in India and overseas projects in
Vietnam, Iran, Qatar and Brazil. Shri Singh’s tenure as Head Nhava Supply Base has been very impressive. In
challenging conditions, he exhibited a leading role with enthusiasm, clarity and discipline; thereby transforming the
performance of the Nhava Supply Base.
With a focus on performance metrics and a continual drive for excellence, Shri Singh spearheaded Tripura Asset as
the Asset Manager. During his tenure, the Asset made signicant improvements – as he was instrumental in a
number of initiatives and enhanced the overall performance of the Asset by fast-tracking projects and synergizing
resource mobilization and its utilization. Shri Singh is also on the Boards of Subsidaries and Joint Ventures-MRPL,
OMPL, OTPC, NETC and OPaL.

Anurag Sharma was appointed as Director (Onshore) of India's agship

oil and gas company ONGC in June 2020. He has over 36 years of
immense experience in the upstream oil & gas sector. He holds a
bachelor's degree in Mechanical Engineering from MNREC, Allahabad.
He did his MBA from FMS, Delhi. He has received executive education
from the prestigious Indian Institute of Management, Calcutta and is a
member of the Society of Petroleum Engineers.
As Director (Onshore), Shri Sharma manages portfolio of 9 onshore oil
& gas assets and 1 Coal Bed Methane Asset. Besides, he is also
Anurag Sharma Director In-charge of Marketing, Health Safety Environment (HSE) and
Director (Onshore) Joint Venture Operations Group (JVOG). Shri Sharma is also a Director
on Boards of ONGC Mangalore Petrochemicals Ltd., Dahej SEZ Ltd,
Mangalore SEZ Ltd and ONGC Petro addition Ltd.
30
After joining ONGC in 1984, Shri Anurag Sharma held various positions in ONGC & ONGC Videsh in Asset
Management, Operations and Services. He worked at different levels in ONGC's Ankleshwar, Jorhat and Cauvery
Projects. He has a rich experience of overseas operations leading OVL's Vietnam projects, MD RIG Russia, besides
contributing to Business Development activities in CIS and SE Asia. He has also served as the EO to Director (T&FS),
ONGC and led the agship initiatives viz. Make in India & Start-up India as Head -lndeg.

Prior to joining as Director (Onshore), he was the Asset Manager of Cauvery Asset. Under his leadership, Cauvery
Asset produced the highest ever oil production in the last two decades. He has a strong track record for delivery of
the projects with his excellent project execution skills. He strongly believes in safe work practices and focuses on
transforming the company into a safer & more resilient business. He is well-known for his interpersonal skills
promoting a diverse and inclusive environment.
 ANNUAL REPORT
Shri Rajesh Madanlal Aggarwal, Government Nominee Director
2020-21
appointed w.e.f. 24-03-2020, belongs to 1989 batch (MH cadre) of
Indian Administrative Services. Presently, he is the Additional Secretary
& Financial Adviser, Ministry of Petroleum & Natural Gas and Ministry of
Corporate Affairs, Government of India.
He graduated from the Indian Institute of Technology, Delhi as a
Bachelor of Technology in Computer Science & Engineering. He
worked in Central Government as Joint Secretary, Department of
Financial Services and Director, Jan Dhan Mission in Tribal Affairs and
Rajesh Madanlal Aggarwal Skill Development & Entrepreneurship and earlier as Director in
Government Nominee Director Election Commission of India. In State Government of Maharashtra, he
has worked under various capacities including as its IT Secretary.
He served on the Boards of PNB, IFCI Ltd and Centre for Development
of Advanced Computing. He was also nominated as the CMD of National Insurance Company Ltd. Presently,
Shri Aggarwal is also Director on the Boards of BPCL, ISPRL and HOCL.

Shri Amar Nath, Government Nominee Director, appointed w.e.f.

28-06-2016, belongs to 1994 batch (AGMUT cadre) of Indian
Administrative Services. Presently, he is the Additional Secretary,
Ministry of Petroleum & Natural Gas, Government of India.
He is a Bachelor of Science (Mechanical Engineering) from National
Institute of Technology, Kurukshetra, and MA (International
Development Policy) from Duke University, USA.
Shri Amar Nath was Secretary to the Department of Health,
Amar Nath Government of Delhi prior to the present assignment. He has held the
positions of Administrator of Union Territory of Lakshadweep, CEO of
Government Nominee Director
Delhi Urban Shelter Improvement Board, and CEO of Chandigarh
Housing Board. He has extensive experience of working in various
Departments of Government at senior management positions such as
Finance, Economic Planning, Tourism and Industrial Development in the states of Arunachal Pradesh,
Pondicherry, Chandigarh and Delhi. Before joining IAS in 1994, he worked with SBI and SAIL. Shri Amar Nath is
also a Government Nominee Director on the Board of Oil India Limited.

Shri Amitava Bhattacharyya is appointed as an Independent Director

on the Board of ONGC w.e.f. 19-07-2019. He was the CIC during
2016-18 after he retired from the Civil Services as the Chairman, Staff
Selection Commission, Government of India on 31.12.2015. 31
Shri Bhattacharyya acquired his graduation in Physics from
Presidency College, Kolkata and post-graduation from the University
of Delhi. Later, he served in the National Physical Laboratory-CSIR,
before joining the IAS in 1980. Subsequently, he did a HR and Public
Administration course from Maxwell School of Citizenship, Syracuse,
Amitava Bhattacharyya USA. He served for the Government of Gujarat in various capacities
Independent Director both in the eld as well as in the Secretariat. Later, he served for about
two years in the UPSC as Secretary.
During his service, Shri Bhattacharyya was In-charge of Internal Finance Division of Ministry of Labour,
Government of India and was acting as CFO & Financial Advisor of EPF. He was also on the Board of ESIC.
In the early 90s, he worked under the then Ministry of Environment & Forest, Government of India and was involved
in several important issues of cross country dimensions, including Global Warming, Biodiversity Protection, Ozone
Depletion. He was also the Mission Director for Water Conservation and Sanitation from 2006 to 2009.
Shri Bhattacharyya is associated with an NGO on a voluntary basis and working in the area of anti-trafcking of
women and children in India and other south-east Asian countries.
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Contents
38 Performance 54 Board’s 92 Annexures to 129 Comments
at a Glance Report Board’s Report of C&AG

Performance at a Glance
132 Secretarial 138 Management 170 Corporate 203 Certificate on
Audit Report Discussion and Governance Corporate Governance
Analysis Report Report Compliances

208 Business 240 Independent Auditors’ 258 Standalone 390 Statement Pursuant
Responsibility Report on Standalone Financial to Section 129
Report Financial Statements Statements (AOC-1)
32 33

402 Group 416 Independent Auditors’ 432 Consolidated

Performance Report on Consolidated Financial
at a Glance Financial Statements Statements
 THE UNSTOPPABLE
ENERGY SOLDIERS

Reference Information
Name of Company : Oil and Natural Gas Corporation Limited
CIN : L74899DL1993GOI054155
Registered Ofce : Plot No. 5A- 5B, Nelson Mandela Road, Vasant Kunj, New Delhi-110070
Website : www.ongcindia.com
Email : [email protected]
Phone : 011-26754073/85, Fax: 011-26129091
Board of Directors
Functional Directors Government Nominee Directors Independent Directors
1. Shri Subhash Kumar, Director (Finance) 6. Shri Rajesh Madanlal Aggarwal 8. Shri Amitava Bhattacharyya
& CMD (Additional charge) 7. Shri Amar Nath
2. Dr Alka Mittal, Director (Human Resources)
3. Shri Rajesh Kumar Srivastava, Director (Exploration)
& Director (Offshore) (Additional Charge)
4. Shri Om Prakash Singh, Director (T&FS)
5. Shri Anurag Sharma, Director (Onshore)
Company Secretary Chief Financial Officer
Shri Rajni Kant Shri Vivek Chandrakant Tongaonkar

Auditors Cost Auditors Secretarial Auditor

1. M/s. S. Bhandari & Co., Mumbai 1. M/s. M. Krishnaswamy & Associates, Chennai M/s. Ashu Gupta & Co.,
2. M/s. R. Gopal & Associates, 2. M/s. Musib & Co., Mumbai New Delhi
Kolkata 3. M/s. Chandra Wadhwa & Co., New Delhi
3. M/s. SARC & Associates, 4. M/s. Bandyopadhyaya Bhaumik & Co., Kolkata
New Delhi
5. M/s. N. D. Birla & Co., Ahmedabad
4. M/s. G M Kapadia & Co., Mumbai
6. M/s. Joshi Apte & Associates, Pune
5. M/s. R.G.N. Price & Co., Chennai
6. M/s. Kalani & Co., Rajasthan

34 Registrar & Share Transfer Agent Banker

Alankit Assignment Ltd. State Bank of India
Alankit House
4E/2 Jhandewalan Extension, New Delhi-110055
Listing of Equity / NCDs
Phone : 91-11-4254 1234/1960, 1. BSE Ltd. – Equity & NCDs
Fax : 91-11-42541201/23552001 2. National Stock Exchange of India Ltd.- Equity
Website : www.alankit.com
Email : [email protected]
Debenture Trustee
IDBI Trusteeship Services Limited
Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001
 ANNUAL REPORT
2020-21

Performance at a Glance
35

Laying of 8” exible owline by Vertical Lay System ( VLS) on-board LV 108 for ONGC’s
prestigious KG DWN 98/2 Project
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Performance at a Glance
36 37

Performance at a Glance 38
 THE UNSTOPPABLE
ENERGY SOLDIERS
Performance at a Glance
(` in million unless otherwise 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15* 2013-14* 2012-13* 2011-12*
stated)
PHYSICAL
Quantity Sold (Other than Trading)
- Crude Oil (MMT) 20.71 21.34 22.50 23.67 23.86 24.15 24.11 23.61 23.69 23.09
- Natural Gas (MMM3) 17,694 19,423 20,485 19,494 17,935 17,100 17,983 19,633 20,160 20,202
- LPG (000' Tonnes) 1,011 1,011 1,109 1,186 1,352 1,191 1,090 1,073 1,005 1,033
- Naphtha/ARN (000' Tonnes) 915 1,177 1,154 1,180 1,087 1,065 1,124 1,379 1,520 1,557
- Ethane-Propane (C2-C3)/Ethane/ 1,005 1,225 1,192 914 673 401 337 428 425 461
Propane / Butane (000' Tonnes)
- Superior Kerosene Oil (000' 32 55 71 34 43 66 74 85 106 79
Tonnes)
FINANCIAL
Revenue from Operations 681,411 962,136 1,096,546 850,041 779,078 777,417 830,935 842,028 833,090 768,871
Dividend Income 30,630 24,664 31,054 37,810 16,969 5,712 4,890 3,744 4,615 5,266
Other Non Operating Income 40,795 41,438 41,598 41,026 59,794 64,382 48,775 63,388 49,752 39,263
Total Revenues 752,836 1,028,238 1,169,198 928,877 855,841 847,511 884,600 909,160 887,457 813,400
Statutory Levies 164,237 225,708 265,004 200,984 208,658 195,306 230,993 229,607 223,614 169,902
Operating Expenses ^ 189,047 243,558 236,852 208,863 210,345 202,995 168,176 167,582 173,925 139,812
Exploration Costs written off 63,855 86,837 87,569 70,318 50,545 56,643 105,224 78,357 100,431 93,334
Purchases - - - - 26 72 44 32 31 25
Profit Before Interest, Depreciation & 335,697 472,135 579,773 448,712 386,267 392,495 380,163 433,582 389,456 410,327
Tax (PBIDT)
Depreciation, Depletion, Amortisation 163,274 186,169 154,561 144,702 121,895 110,999 114,583 109,259 83,736 74,959
and Impairment
Profit Before Interest & Tax (PBIT) 172,423 285,966 425,212 304,010 264,372 281,496 265,580 324,323 305,720 335,368
Finance Cost 22,145 33,097 24,921 15,085 12,217 13,242 28 4 277 348
Profit before Tax and Exceptional 150,278 252,869 400,291 288,925 252,155 268,254 265,552 324,319 305,443 335,020
Items
Exceptional items 13,750 (48,990) - - - (32,266) - - - 31,405
Profit before Tax 164,028 203,879 400,291 288,925 252,155 235,988 265,552 324,319 305,443 366,425
Corporate Tax 51,564 69,242 132,645 89,472 73,155 74,589 88,222 103,371 96,186 115,196
38 Net Profit (PAT) 112,464 134,637 267,646 199,453 179,000 161,399 177,330 220,948 209,257 251,229
Dividend 22,015 72,337 95,952 77,642 95,180 49,194 81,277 81,277 81,277 83,416
Tax on Dividend - 12,014 16,845 11,521 19,354 10,005 16,256 13,807 13,012 13,286
Share Capital 62,901 62,902 62,902 64,166 64,166 42,778 42,778 42,778 42,778 42,777
Reserve & Surplus 1,879,201 1,789,084 1,754,295 1,653,940 1,544,524 1,504,433 1,403,232 1,324,472 1,201,755 1,086,790
Net Worth (Equity) 2,045,586 1,930,948 2,017,896 1,933,847 1,855,384 1,657,747 1,436,229 1,356,311 1,229,674 1,117,841
Borrowings 150,226 139,491 215,936 255,922 - - 13,930 - - 45,000
Working Capital (50,524) (210,589) (183,718) (278,453) 70,395 98,942 94,232 104,061 124,714 97,739
Capital Employed 1,159,394 1,062,842 1,091,861 984,459 1,185,309 1,112,137 1,144,995 1,094,412 1,017,636 908,848
Internal Resources Generation 249,075 382,274 334,020 353,474 281,916 404,040 218,699 327,545 217,402 352,088
Capex 268,593 295,385 294,498 729,016 280,064 301,104 299,975 324,695 295,079 292,466
 ANNUAL REPORT
2020-21
(` in million unless otherwise 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15* 2013-14* 2012-13* 2011-12*
stated)
Contribution to Exchequer 260,773 411,019 518,714 376,088 387,341 345,192 421,074 405,750 408,806 382,873
Expenditure on Employees 101,265 115,124 121,130 113,811 115,508 86,970 86,299 104,051 103,302 67,960
Number of Employees 28,479 30,105 31,065 32,265 33,660 33,927 33,185 33,911 32,923 32,909
FINANCIAL PERFORMANCE RATIOS
PBIDT to Turnover (%) 49.3 49.1 52.9 52.8 49.6 50.5 45.8 51.5 46.7 53.4
PBDT to Turnover (%) 46.0 45.6 50.6 51.0 48.0 48.8 45.7 51.5 46.7 53.3
Profit Margin(%)- incl. exceptional 16.5 14.0 24.4 23.5 23.0 20.8 21.3 26.2 25.1 32.7
item
Contribution to Exchequer to 38.3 42.7 47.3 44.2 49.7 44.4 50.7 48.2 49.1 49.8
Turnover (%)
Return on Capital Employed (%) 12.23 24.59 36.10 27.04 20.87 24.80 22.77 29.29 29.59 36.32
(ROCE)
Return on Capital Employed (%) 13.42 19.98 36.10 27.04 20.87 21.90 22.77 29.29 29.59 39.78
(ROCE) -incl. exceptional items
Net Profit to Equity (%)- incl. 5.5 7.0 13.3 10.3 9.6 9.7 12.3 16.3 17.0 22.5

Performance at a Glance
exceptional item
BALANCE SHEET RATIOS
Current Ratio 0.86 : 1 0.56 : 1 0.61 : 1 0.44 : 1 1.55:1 1.72:1 1.46:1 1.55:1 1.72:1 1.41:1
Debt Equity Ratio 0.07 : 1 0.07 : 1 0.11 : 1 0.13 : 1 - - 0.0096:1 - - 0.0398:1
Debtors Turnover Ratio(Days) 34 25 27 31 28 45 48 33 30 30
PER SHARE DATA
Earning Per Share (`) # 8.94 10.7 20.9 15.54 13.95 12.58 13.82 17.22 16.31 19.58
Dividend (%) 72 100 140 132 121 170 190 190 190 195
Book Value Per Share(`)(Restated) # 163 153 160 151 145 129 112 106 96 87

* The figures of 2014-15 are given as per requirements of Schedule-III to the Companies Act, 2013, figures for FY 2011-12 to FY 2013-14
are given as per the requirement of revised Schedule VI to the Companies Act, 1956. Figures of FY 2020-21, FY 2019-20 (restated), FY
2018-19 (restated), FY 2017-18, FY 2016-17 and FY 2015-16 (restated) are given as per requirment of Ind AS Compliant Schedule-III to the
Companies Act, 2013.
# In accordance with Ind AS 33 ‘Earnings per Share’, earnings per equity share have been adjusted for bonus issue and split for all years.
The book value per share has also been adjusted post bonus & split.
^ Includes Accretion/ Decretion in stock, Provisions & Write-offs.

Note:
1. Turnover = Revenue from Operations.
39
2. Capital Employed = Net Working Capital + Net Non Current Assets excluding Capital work in progress, Exploratory/Developments wells
& Investments.
3. Equity (Net Worth) = Equity Share Capital & Other Equity attributable to Owners of the Company.
4. Borrowings = Non-current Borrowings + Current Borrowings.
5. Profit Margin (%) = Profit after tax for the year/Turnover.
6. Working Capital = Current Assets (Excluding Investment) - Current Liablities .
7. ROCE = Profit Before Interest, Dividend Income & Tax (PBIT excluding Dividend income) / Capital Employed.
8. Current Ratio = Current Assets (Including Current Investment) / Current Liablities.
9. Debt Equity Ratio = Total Debt (Non-current & current) / Equity (Net Worth).
10. Net Profit to Equity (%) = Profit after tax for the year / Equity (Net Worth).
11. Debtor Turnover Ratio (days) = (Average Receivables/Revenue from Operaions)*365
12. Earning per share = Profit after Tax attributable to Owners of the Company / No. of Equity Shares.
13. Book vale per share = Equity (Net Worth) / No. of Equity Shares.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Statement of Income and Retained Earnings
(` in million) 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15* 2013-14* 2012-13* 2011-12*
REVENUES
Sales #
Crude Oil(Including Condensate) 479,338 648,363 775,729 603,899 548,036 511,316 536,638 525,734 533,269 507,873
Natural Gas (incl. Gas Marketing 114,216 193,556 188,389 137,372 139,398 182,239 187,381 183,291 165,400 141,397
Margin)
Liquified Petroleum Gas (LPG)- 31,973 36,038 43,490 40,352 37,276 34,951 34,380 30,145 31,484 23,711
Domestic Market
Ethane-Propane (C2-C3)/Ethane/ 23,962 32,551 32,590 24,226 17,264 9,441 10,064 14,837 13,440 12,741
Propane / Butane
Naphtha 26,081 39,863 46,861 38,084 30,455 30,609 50,835 75,743 76,804 72,167
Kerosene (SKO) 837 2,465 3,355 1,178 1,321 2,118 2,771 2,779 3,686 1,520
HSD 1,531 2,390 1,155 - 421 406 312 522 170 100
LSHS (Low sulpher heavy stock)/ 538 747 694 482 562 412 705 1,295 1,063 1,250
RCO (Residual Crude oil)
Aviation Turbine Fuel 336 889 519 - - - 286 220 318 436
Others 97 152 217 209 131 76 56 87 38 62
Sub- Total 678,909 957,014 1,092,999 845,802 774,864 771,568 823,428 834,653 825,672 761,257
Sale of Traded Products - - - - 31 84 60 44 43 34
Other Operating Income 2,502 5,122 3,547 4,239 4,183 5,765 7,447 7,331 7,375 7,580
Revenue from Operations 681,411 962,136 1,096,546 850,041 779,078 777,417 830,935 842,028 833,090 768,871
Dividend Income 30,630 24,664 31,054 37,810 16,969 5,712 4,890 3,744 4,615 5,266
Other Non Operating Income 40,795 41,438 41,598 41,026 59,794 64,382 48,775 63,388 49,752 39,263
Total Revenues 752,836 1,028,238 1,169,198 928,877 855,841 847,511 884,600 909,160 887,457 813,400
EXPENSES
Royalty 81,354 115,076 134,600 99,090 115,748 89,591 116,079 114,890 108,094 97,745
OIDB Cess 80,187 107,878 128,568 99,638 89,045 101,916 102,535 99,734 99,971 57,831
Motor Spirit Cess - - - - - - - 3 - -
Natural Calamity Contingent Duty 989 1,020 1,063 1,122 1,129 1,137 1,123 1,097 1,101 1,097
Excise Duty 539 478 268 410 2,093 1,990 2,206 3,076 3,093 3,599
Road and Infrastructure Cess 734 910 183
Sales Tax # - - - - - - 2,586 3,123 3,834 3,339

40 Service Tax - - - 334 289 339 290 439 353 236

Education cess - - - - - - 91 2,348 3,111 1,871
Octroi and Port Trust Charges # 434 346 322 390 354 333 6,083 4,897 4,057 4,184
Sub-total 164,237 225,708 265,004 200,984 208,658 195,306 230,993 229,607 223,614 169,902
Operating Expenses 189,525 215,840 226,386 206,602 210,082 197,672 163,654 165,833 153,839 134,110
Exchange Loss-Net - 16,772 4,769 - - 1,033 241 1,021 922 3,613
Purchases - - - - 26 72 44 32 31 25
(Accretion) / Decretion in stock (4,264) 2,470 (1,665) (630) (1,329) 352 (1,674) 1,043 (230) (913)
Exploration Costs written off
- Survey Costs 17,245 16,879 18,514 14,801 17,549 15,274 19,146 15,912 15,668 12,409
- Exploratory well Costs 46,610 69,958 69,055 55,517 32,996 41,369 86,078 62,445 84,763 80,925
 ANNUAL REPORT
2020-21
(` in million) 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15* 2013-14* 2012-13* 2011-12*
Depreciation, Depletion, 163,274 186,169 154,561 144,702 121,895 110,999 114,583 109,259 83,736 74,959
Amortisation and Impairment
Provisions and Write-offs 3,786 8,476 7,362 2,891 1,592 3,938 2,116 2,189 18,863 3,097
Prior Period Expenses (Net) - - - - - - 3,839 (2,504) 531 (95)
Total Expenses 580,413 742,272 743,986 624,867 591,469 566,015 619,020 584,837 581,737 478,032
Operating Income Before Interest 172,423 285,966 425,212 304,010 264,372 281,496 265,580 324,323 305,720 335,368
& Tax
Finance Cost 22,145 33,097 24,921 15,085 12,217 13,242 28 4 277 348
Profit before Tax and Exceptional 150,278 252,869 400,291 288,925 252,155 268,254 265,552 324,319 305,443 335,020
Items
Exceptional items 13,750 (48,990) - - - (32,266) - - - 31,405
Profit before Tax 164,028 203,879 400,291 288,925 252,155 235,988 265,552 324,319 305,443 366,425
Corporate Tax ( Net) 51,564 69,242 132,645 89,472 73,155 74,589 88,222 103,371 96,186 115,196
Profit after Tax 112,464 134,637 267,646 199,453 179,000 161,399 177,330 220,948 209,257 251,229
Other comprehensive income (OCI) 24,189 (124,609) (17,988) (31,827) 133,171 6,120 - - - -
Total Comprehensive Income for 136,653 10,028 249,658 167,626 312,171 167,519 177,330 220,948 209,257 251,229

Performance at a Glance
the year
Retained Earnings at beginning of (5,525) 9,779 24,831 25,704 28,692 (691) - - - -
the year*
Effect of Restatement - (12,625) (12,518) - - - - - - -
Profit after tax for the year 112,464 134,637 267,646 199,453 179,000 161,399 177,330 220,948 209,257 251,229
Other comprehensive income arising (333) (2,871) (2,946) (873) (2,988) (297) - - - -
from re-measurement of defined
benefit obligation, net of income tax
Dividend 22,015 72,337 95,952 77,642 95,180 49,194 81,277 81,277 81,277 83,416
Tax on Dividend - 12,014 16,845 11,521 19,354 10,005 16,256 13,807 13,012 13,286
Expenses relating to buyback of - - 75 - - - - - - -
equity shares
Transfer to General Reserve 75,400 50,094 154,362 110,290 64,466 72,520 79,797 125,864 114,968 154,527
Retained Earnings at end of the year 9,191 (5,525) 9,780 24,831 25,704 28,692 - - - -

* The figures of 2014-15 are given as per requirements of Schedule-III to the Companies Act, 2013, figures for FY 2011-12 to FY 2013-14
are given as per the requirement of revised Schedule VI to the Companies Act, 1956. Figures of FY 2020-21, FY 2019-20 (restated), FY
2018-19 (restated), FY 2017-18, FY 2016-17 and FY 2015-16 (restated) are given as per requirment of Ind AS Compliant Schedule-III to the
Companies Act, 2013.
# Sales are presented net of sales tax and Octroi with effect from 2015-16 as per the requirements of Indian Accounting Standards.
41
 THE UNSTOPPABLE
ENERGY SOLDIERS
Statement of Financial Position
(` in million) As at March As at March As at March As at March As at March As at March
31, 2021 31, 2020 31, 2019 31, 2018 31, 2017 31, 2016
RESOURCES
A. Own (Net Worth)
1) Equity
i) Equity share capital 62,901 62,902 62,902 64,166 64,166 42,778
ii) Other Equity
(a) Reserve for equity instruments through other 103,484 78,962 200,699 215,741 246,694 110,536
Comprehensive income
(b) Others 1,879,201 1,789,084 1,754,295 1,653,940 1,544,524 1,504,433
Total other equity 1,982,685 1,868,046 1,954,994 1,869,681 1,791,218 1,614,969
Net worth (A) # 2,045,586 1,930,948 2,017,896 1,933,847 1,855,384 1,657,747
B. Non-current Borrowings 63,275 22,451 - - - -
C. Deferred Tax Liability (net) 274,734 263,441 274,261 262,592 221,632 192,973
TOTAL RESOURCES ( A+ B + C ) 2,383,595 2,216,840 2,292,157 2,196,439 2,077,016 1,850,720
DISPOSITION OF RESOURCES
A. Non-current assets
1) Block Capital
a) Oil and Gas Assets ^ 1,106,791 1,084,767 1,121,178 1,102,648 955,312 856,787
b) Other Property, Plant and Equipment ^ 90,681 92,216 96,435 92,507 91,875 85,339
c) Intangible assets 2,172 1,810 1,745 1,129 883 665
d) Right-of-use assets 107,354 98,198 -
Total Block Capital 1,306,998 1,276,991 1,219,358 1,196,284 1,048,070 942,791
2) Financial assets
a) Loans 13,274 11,825 10,461 21,335 28,071 41,488
b) Deposit under Site Restoration Fund Scheme 233,587 221,522 180,926 159,912 145,387 135,592
c) Others 1,171 1,504 2,649 1,647 1,418 1,486
Total Financial assets 248,032 234,851 194,036 182,894 174,876 178,566
3) Other non-current assets (excl, capital advances) 10,972 7,232 5,667 6,495 7,349 6,789
4) Non-current tax assets (net) 76,558 90,431 94,272 99,464 87,763 74,316
Subtotal (A) 1,642,560 1,609,505 1,513,333 1,485,137 1,318,058 1,202,462
42
B. Non-current Liabilities
(a) Financial liabilities 126,887 56,294 1,181 1,494 2,583 2,313
(b) Provisions 305,352 279,392 236,247 213,018 192,852 186,843
(c) Other non-current liabilities 403 388 326 7,713 7,709 111
Subtotal (B) 432,642 336,074 237,754 222,225 203,144 189,267
C. Net Non Current Assets (A)-(B) 1,209,918 1,273,431 1,275,579 1,262,912 1,114,914 1,013,195
D. Working Capital
1) Current Assets
a) Inventories 84,745 85,666 77,039 66,889 61,653 56,256
 ANNUAL REPORT
2020-21

(` in million) As at March As at March As at March As at March As at March As at March

31, 2021 31, 2020 31, 2019 31, 2018 31, 2017 31, 2016
b) Financial assets
i) Trade receivables 77,973 47,774 84,400 77,726 64,762 54,314
ii) Cash and Bank Balances 3,026 9,682 5,041 10,127 95,108 99,566
iii) Loans 3,835 5,117 6,339 14,021 14,269 10,272
iv) Others 33,899 27,739 46,175 30,418 11,347 23,202
c) Other current assets 114,297 93,881 63,303 15,984 15,591 34,113
Assets classified as held for sale - - 1,154 - - -
Subtotal (1) 317,775 269,859 283,451 215,165 262,730 277,723
2) Current liabilities
a) Financial liabilities
i) Current Borrowings 86,951 117,040 215,936 255,922 - -
ii) Trade payables 63,767 71,136 88,250 73,345 51,548 51,264
iii) Others 180,206 262,135 122,472 122,513 94,969 95,693

Performance at a Glance
b) Other current liabilities 23,189 18,663 24,155 22,893 18,361 16,390
c) Short-term provisions 13,858 10,975 15,857 12,582 21,328 7,043
d) Current tax liabilities (net) 328 499 499 6,363 6,129 8,391
Subtotal (2) 368,299 480,448 467,169 493,618 192,335 178,781
Working Capital (D )= (1)-(2) (50,524) (210,589) (183,718) (278,453) 70,395 98,942
E. CAPITAL EMPLOYED (C+D) 1,159,394 1,062,842 1,091,861 984,459 1,185,309 1,112,137
F. Investments
i) Current investments - - - - 36,343 30,032
ii) Non-current investments 813,764 790,855 848,815 857,308 505,154 368,278
G. Capital work-in-progress (incl, capital advances) 194,089 151,833 116,253 113,835 126,122 132,686
H. Exploratory/Development Wells in Progress 216,348 211,310 235,228 240,837 224,088 207,587
TOTAL DISPOSITION (E+F+G+H) 2,383,595 2,216,840 2,292,157 2,196,439 2,077,016 1,850,720

* The figures of 2014-15 are given as per requirements of Schedule-III to the Companies Act, 2013, figures for FY 2011-12 to
FY 2013-14 are given as per the requirement of revised Schedule VI to the Companies Act, 1956. Figures of FY 2020-21, FY 2019-20 (restated),
FY 2018-19 (restated), FY 2017-18, FY 2016-17 and FY 2015-16 (restated) are given as per requirment of Ind AS Compliant Schedule-III to
the Companies Act, 2013.
# Includes reserve for equity instruments through other comprehensive income
^ Note: As on transition date 1st April 2015, carrying value of assets pertaining to production & allied facilities have been regrouped from
other Property Plant and Equipment to “Oil and Gas Assets” to reflect the aggregate amount of Oil and Gas Assets.
43
 THE UNSTOPPABLE
ENERGY SOLDIERS
Statement of Financial Position
(` in million) As at March As at March As at March As at March
31, 2015* 31, 2014* 31, 2013* 31, 2012*
RESOURCES
A. Own
(a) Equity
i) Share Capital 42,778 42,778 42,778 42,777
ii) Reserves & Surplus 1,403,232 1,324,472 1,201,755 1,086,790
Sub-Total (a) 1,446,010 1,367,250 1,244,533 1,129,567
(b) Less Deferred Revenue Expenditure 9,781 10,939 14,859 11,726
Net Worth (a)-(b) 1,436,229 1,356,311 1,229,674 1,117,841
B. Deferred Tax Liability 177,332 165,787 128,880 111,979
TOTAL RESOURCES ( A+ B ) 1,613,561 1,522,098 1,358,554 1,229,820
DISPOSITION OF RESOURCES
A. Non-current assets
1) Block Capital
a). Fixed Assets (Net)* 314,907 302,792 274,835 216,801
b). Producing Properties (Net)/Oil and Gas Assets* 667,110 657,833 524,407 463,768
Total Block Capital 982,017 960,625 799,242 680,569
2) Long-term loans and advances (excl, capital advances) 193,177 181,718 221,454 254,482
3) Deposit under Site Restoration Fund Scheme 125,444 113,102 101,331 91,826
4) Other non-current assets (excl. DRE) 4,397 3,956 4,011 2,983
Subtotal (A) 1,305,035 1,259,401 1,126,038 1,029,860
B. Non-current Liabilities
1) Long-term provisions:
a) Provision for Abandonment 227,138 228,022 177,052 176,477
b) Other Long Term provisions 26,494 29,178 44,823 36,654
2) Other Non-current liabilities 640 11,850 11,242 5,620
Subtotal (B) 254,272 269,050 233,116 218,751
C. Net Non Current Assets (A)-(B) 1,050,763 990,351 892,922 811,109
D. Working Capital
a) Current Assets
i) Inventories 59,623 58,825 57,044 51,654
ii) Trade receivables 135,783 81,657 68,637 61,948
iii) Cash and Bank Balances 27,601 107,989 132,186 201,246
iv) Short-term loans and advances 69,477 43,670 37,021 31,237
v) Other current assets (excl. DRE) 4,933 2,718 4,565 8,633
Subtotal (a) 297,417 294,859 299,453 354,718
b) Current liabilities
i) Short-term borrowings 13,930 - - 45,000
44 ii) Trade payables 55,611 63,725 53,410 52,612
iii) Other current liabilities 112,867 119,262 112,227 136,941
iv) Short-term provisions 20,777 7,811 9,102 22,426
Subtotal (b) 203,185 190,798 174,739 256,979
Working Capital (D )= (a)-(b) 94,232 104,061 124,714 97,739
E. CAPITAL EMPLOYED (C+D) 1,144,995 1,094,412 1,017,636 908,848
F. Investments
i) Current investments - - - 8,519
ii) Non-current investments 181,244 172,042 91,731 43,644
G. Capital work-in-progress (incl, capital advances) 128,437 116,516 144,429 182,997
H. Exploratory/Development Wells in Progress 158,885 139,128 104,759 85,812
TOTAL DISPOSITION (E+F+G+H) 1,613,561 1,522,098 1,358,554 1,229,820
 ANNUAL REPORT
2020-21
Depreciation and Contribution to Exchequer
(` in million) 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15* 2013-14* 2012-13* 2011-12*
DETAILS OF DEPRECIATION ALLOCATED TO:
Survey 729 1,107 783 550 430 433 589 448 567 756
Exploratory Drilling 17,780 15,891 2,646 4,894 4,111 2,729 3,284 2,506 1,335 4,844
Development 16,602 17,516 2,947 2,317 3,586 3,216 36,774 66,628 62,584 52,782
Profit & Loss Account 37,679 33,285 14,171 13,293 11,971 13,785 14,367 20,518 14,620 13,395
Others 220 530 308 389 768 535 298 162 114 16
Total 73,010 68,329 20,855 21,443 20,866 20,698 55,312 90,262 79,220 71,793
CONTRIBUTION TO EXCHEQUER
CENTRAL
1. Excise Duty 539 478 268 411 2,093 1,990 2,207 3,076 3,093 3,599
2. Road and Infrastructure Cess 494 408 183 - - - - - - -
3. OID Cess 80,188 107,880 128,568 99,639 89,053 101,928 102,550 99,740 99,993 57,852
4. Natural Calamity Contingent Duty 990 1,020 1,063 1,122 1,129 1,137 1,123 1,097 1,101 1,098

Performance at a Glance
5. Royalty 35,813 52,127 58,765 45,797 43,783 45,974 35,870 41,965 39,407 36,144
6. Education Cess - - - - - - 91 2,349 3,112 1,872
7. Corporate Tax - - - - - - - - - -
a) On ONGC's Account 42,050 70,487 111,423 61,331 42,915 55,843 76,152 67,646 79,285 102,722
b) For Foreign Contractors 9 20 14 8 (7) (38) 25 36 11 73
8. Dividend # 13,299 43,940 62,900 52,748 65,439 33,912 56,029 56,153 56,268 60,372
9. Tax on Dividend # - 12,014 16,845 11,521 19,354 10,005 16,256 13,807 13,012 13,286
10. Customs Duties 1,009 1,514 1,096 636 2,200 151 77 87 75 96
11. Mumbai Port Trust Charges 1,311 914 970 1,219 1,148 1,062 984 884 923 855
12. Central Goods and Services Tax (CGST) 2,523 3,128 3,292 2,054 - - - - - -
13. Integrated Goods and Services Tax (IGST) 2,254 2,519 3,842 2,411 - - - - - -
Sub Total 180,479 296,449 389,229 278,897 267,107 251,964 291,364 286,840 296,280 277,969
STATE
1. Sales Tax/VAT 30,212 46,942 50,180 39,117 40,212 44,006 43,765 41,344 40,144 39,393
2. Royalty 45,547 62,983 75,839 53,298 72,007 43,639 80,194 72,971 68,699 61,648
3. Octroi Duties etc. - - - 2,424 8,015 5,583 5,751 4,592 3,683 3,863
4. Motor Sprit -CESS 36 66 15 - - - - 3 - -
5. State Goods and Services Tax (SGST) 2,530 3,431 3,292 2,352 - - - - - - 45
6. Tripura Road Development Cess 1,969 1,148 159 - - - - - - -
Sub Total 80,294 114,570 129,485 97,191 120,234 93,228 129,710 118,910 112,526 104,904
Grand Total 260,773 411,019 518,714 376,088 387,341 345,192 421,074 405,750 408,806 382,873

* The figures of 2014-15 are given as per requirements of Schedule-III to the Companies Act, 2013, figures for FY 2011-12 to FY 2013-14
are given as per the requirement of revised Schedule VI to the Companies Act, 1956. Figures of FY 2020-21, FY 2019-20 (restated), FY
2018-19 (restated), FY 2017-18, FY 2016-17 and FY 2015-16 (restated) are given as per requirment of Ind AS Compliant Schedule-III to the
Companies Act, 2013.
# As per Indian Accounting Standards the dividends declared after the balance sheet date is not recognised as a liability at the balance
sheet date. Accordingly, the final proposed dividend and tax on dividend thereon has not been included for 2020-21, 2019-20, 2018-19,
2017-18, 2016-17 and 2015-16.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Glossary of Energy & Financial Terms

A. Energy Terms Mining Lease: The license issued for offshore and
onshore properties for conducting development and
Appraisal Well: A well drilled as part of an appraisal production activity.
drilling programme, which is carried out to determine
the physical extent of oil and gas reserves & Natural Gas Liquids (NGL): Separated from natural
characteristics thereof and the quantity of recoverable gas, these include ethane, propane, butane and
Petroleum therein. natural gasoline.
Condensates: Liquid hydrocarbons produced with Oil Equivalent Gas (OEG): The volume of natural
natural gas, separated by cooling and other means. gas that can be burnt to give the same amount of
heat as a barrel of oil (6,000 cubic feet of gas equals
Development: Following discovery, drilling and
one barrel of oil).
related activities necessary to begin production of oil
or natural gas. Petroleum Exploration License: The license issued
for offshore and onshore properties for conducting
Development Well: A well drilled within the proved
exploration activity.
area of an Oil and Gas reservoir to the depth of a
horizon known to be productive. Reserves: Oil and Natural Gas contained in
underground rock formations called reservoirs.
Enhanced Recovery: Techniques used to increase
Proved reserves are the estimated quantities that
or prolong production from oil and natural gas fields.
geologic and engineering data demonstrate can
Exploration: Searching for oil and/or natural gas, be produced with reasonable certainty from known
including topographical surveys, geologic studies, reservoirs under existing economic and operating
geophysical surveys, seismic surveys and drilling conditions. Reserve estimates change as additional
wells. information becomes available. Recoverable reserves
are those that can be produced using all known
Exploratory Well: A well drilled for the purpose primary and enhanced recovery methods.
of obtaining information pertaining to a specific
geological condition and drilled in an unproven area Service well: A service well, also known as utility well,
for establishing oil and gas deposits. is drilled or completed for the purpose of supporting
production in an existing field. Wells in this class are
Heavy Cut: These are heavier hydrocarbons drilled for injection of gas, water, steam, air, polymer,
obtained in fractionation unit of Kerosene Recovery salt-water, CO2, effluent disposal etc.
Process, where NGL is processed to yield Aromatic
Rich Naphtha and Superior Kerosene Oil. Unit Of Production Method: The method of
depreciation (depletion) under which depreciation
Integrated Petroleum Company: A company (depletion) is calculated on the basis of the number
46 engaged in all aspects of the industry from exploration of production or similar units expected to be obtained
and production of crude oil and natural gas (upstream) from the asset by the enterprise.
to refining, marketing and transportation products
(downstream). Work-Over: The process of performing major
maintenance or remedial treatments on a well to
Liquefied Natural Gas (LNG): Gas that is liquefied
increase flow of oil and gas.
under extremely cold temperatures and high pressure
to facilitate storage or transportation in specially B. Financial Terms
designed vessels.
Accounting Policies: The specific accounting
Liquefied Petroleum Gas (LPG): Light gases, such principles and the methods of applying those
as butane and propane that can be maintained as principles adopted by an enterprise in the preparation
liquids while under pressure. and presentation of financial statements.
 ANNUAL REPORT
2020-21
Accrual Basis of Accounting: The method of Capital Reserve: A reserve of a corporate enterprise
recording transactions by which revenues, expenses, which is not available for distribution as dividend.
assets and liabilities are reflected in the accounts in
the period in which they accrue. The ‘accrual basis Contingent Asset is a possible asset that arises from
of accounting’ includes considerations relating to past events and whose existence will be confirmed
deferrals, allocations, depreciation and amortization. only by the occurrence or non-occurrence of one or
This basis is also referred to as mercantile basis of more uncertain future events not wholly within the
accounting. control of the entity.

Acquisition Costs: These cover all costs incurred Contingent Liability is a present obligation that arises
to purchase, lease or otherwise acquire a property from past events but is not recognised because:
or mineral right proved or unproved. These include
(i) it is not probable that an outflow of resources
lease/ signature bonus, brokers’ fees, legal costs,
embodying economic benefits will be required to
cost of temporary occupation of the land including
settle the obligation; or
crop compensation paid to farmers, consideration
for firm-in arrangements and all other costs incurred

Glossary of Energy & Financial Terms

(ii) the amount of the obligation cannot be measured
in acquiring these rights. Acquisition Costs are with sufficient reliability.
recognized in the accounts note no. 3.10 (ii) in
Significant Accounting Policies under Notes to Current Asset: An asset shall be classified as current
Financial Statements. when:

Absorption Costing: A method whereby the cost is (a) it is expected to realise the asset, or intended to
determined so as to include the appropriate share of sell or consume it, in its normal operating cycle;
both variable and fixed costs.
(b) it is held primarily for the purpose of trading;
Balance Sheet: A statement of the financial position
of an enterprise as at a given date, which exhibits its (c) it is expected to realise the asset within twelve
assets, liabilities, capital, reserves and other account months after the reporting period; or
balances at their respective book values.
(d) the asset is cash or a cash equivalent unless the
Book Value: The amount at which an item appears in asset is restricted from being exchanged or used
the books of account or financial statements. It does to settle a liability for at least twelve months after
not refer to any particular basis on which the amount the reporting period.
is determined e.g. cost, replacement value etc.
Current Liability: A liability shall be classified as
Business Combination under Common control: A current when:
business combination involving entities or businesses
under common control is a business combination in (a) it is expected to settle the liability in its normal
which all the combining entities or businesses are operating cycle;
ultimately controlled by the same party or parties both
47
(b) it is held primarily for the purpose of trading;
before and after the business combination, and that
control is not transitory. (c) the liability is due to be settled within twelve
months after the reporting period; or
Capital Commitment: Future liability for capital
expenditure in respect of which contracts have been (d) it does not have an unconditional right to defer
made. settlement of the liability for at least twelve months
after the reporting period.
Capital Employed: The finances deployed by an
enterprise in its net fixed assets, investments and Cess: It is a levy imposed under The Oil Industry
working capital. Capital employed in an operation (Development) Act, 1974 on Crude oil acknowledged
may, however, exclude investments made outside & received in the refinery and payable to the Central
that operation. Government.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Decommissioning, restoration costs / provision: may warrant examination and examining specific
These are the costs incurred on discontinuation of all areas, including drilling exploratory wells.
operations and surrendering the property back to the
owner. These costs relate to plugging and abandoning Exploration Costs written off: It refers to the Survey
of wells, dismantling of wellheads, production and expenditure and Dry wells expensed in the accounts
transport facilities and to restoration of producing in line with note no.3.8 (ii) and 3.10 (iii) in Significant
areas. Decommissioning Costs are recognized in the Accounting Policies under Notes to Financial
accounts as per note no.3.13 in Significant Accounting Statements.
Policies under Notes to Financial Statements. Where Fair value: The price that would be received to sell
the effect of the time value of money is material, these an asset or paid to transfer a liability in an orderly
costs are required to be recognised at the present transaction between market participants at the
value of the expenditures expected to settle the measurement date.
obligation.
First In, First Out (FIFO): Computation of the
Development Costs: Costs incurred in preparing cost of items sold or consumed during a period as
proved reserves for production i.e. costs incurred though they were sold or consumed in order of their
to obtain access to prove reserves and to provide acquisition.
facilities for extracting, treating, gathering and storing
oil and gas. Financial asset is an asset that is cash, an equity
instrument of another entity, a contractual right to
Depreciation method: The depreciation method receive cash or another financial asset from another
used reflects the pattern in which the asset’s future entity or to exchange financial assets or financial
economic benefits are expected to be consumed. liabilities with another entity under conditions that
A variety of depreciation methods can be used to are potentially favorable to the entity; or a contract
allocate the depreciable amount of an asset on a that will or may be settled in the entity’s own equity
systematic basis over its useful life. These methods instruments and is non-derivative for which the entity
include the straight-line method, the diminishing is or may be obliged to receive a variable number of
balance method and the units of production method. the entity’s own equity instruments or a derivative that
Dividend: A distribution to shareholders out of profits will or may be settled other than by the exchange of
or reserves available for this purpose. a fixed amount of cash or other financial asset for a
fixed number of the entity’s equity instruments.
Effective interest rate method: It is a method of
calculating the amortised cost of a financial asset Financial Instruments: A “financial instrument” is
or a financial liability and of allocating the interest defined as any contract that gives rise to a financial
income or interest expense over the relevant period. asset of one entity and a financial liability or equity
Effective interest rate is the rate that exactly discounts instrument of another entity.
estimated future cash payments or receipts through Financial Liability is any liability that is a contractual
the expected life of the financial asset or financial obligation to deliver cash or another financial asset to
48 liability to the gross carrying amount of a financial another entity (e.g. a payable), to exchange financial
asset or to the amortised cost of a financial liability. assets or financial liabilities with another entity
Expenditure: Incurring a liability, disbursement under conditions that are potentially unfavorable to
of cash or transfer of property for the purpose of the entity; or a contract that will or may be settled
obtaining assets, goods and services. in the entity’s own equity instruments and is a non-
derivative contract for which the entity is or may be
Expense: A cost relating to the operations of an obliged to deliver a variable number of its own equity
accounting period or to the revenue earned during instruments (e.g. an instrument that is redeemable in
the period or the benefits of which do not extend own shares to the value of the carrying amount of the
beyond that period. instrument).

Exploration Costs: Costs incurred in exploring Fixed Cost: The cost of production which, by
property. Exploration involves identifying areas that its very nature, remains relatively unaffected in a
 ANNUAL REPORT
2020-21
defined period of time by variations in the volume of Net Realisable Value: The actual/ estimated selling
production. price of an asset in the ordinary course of the business
less cost of completion and cost necessarily to be
Fundamental Accounting Assumptions: Basic incurred in order to make the sale.
accounting assumption which underline the
preparation and presentation of financial statements. Non Current Asset: All assets other than Current
They are going concern, consistency and accrual. assets are classified as Non Current asset.
Usually, they are not specifically stated because their
acceptance and use are assumed. Disclosure is Non Current Liability: All liabilities other than Current
necessary if they are not followed. liabilities are classified as non-current liability.

Inventory: Tangible property held for sale in the Non-controlling interests: Equity in a subsidiary
ordinary course of business, or in the process of not attributable, directly or indirectly, to a parent.
production for such sale, or for consumption in the It represents the proportion of income, other
production of goods or services for sale, including comprehensive income and net assets in subsidiaries
maintenance supplies and consumables other than that is not attributable to the Company’s shareholders.

Glossary of Energy & Financial Terms

machinery spares.
Net Present Value (NPV): NPV is the present
Investment: Expenditure on assets held to earn (discounted) value of future cash inflows minus the
interest, income, profit or other benefits. present value of the cash outflows.
Impairment of Doubtful Debts: A provision made for Oil & Gas Assets: These are created in respect
debts considered doubtful of recovery. of an area/field having proved developed oil
Lease: A contract, or part of a contract, that conveys and gas reserves. Oil & Gas Assets consist of
the right to use an asset (the underlying asset) for a successful Exploratory Wells, all Development Wells,
period of time in exchange for consideration Service Wells, Production facilities and estimated
decommissioning cost.
Liability: A liability is a present obligation of the entity
arising from past events, the settlement of which is Obsolescence: Diminution in the value of an asset
expected to result in an outflow from the entity of by reason of its becoming out-of-date or less useful
resources embodying economic benefits. due to technological changes, improvement in
production methods, change in market demand for
Materiality: An accounting concept according to the product or service output of the asset, or legal or
which all relatively important and relevant items, other restrictions.
i.e., items the knowledge of which individually or
collectively; influence the economic decisions that Operating Cycle: An Operating cycle is the time
users make on the basis of the financial statements. between the acquisition of assets for processing and
Materiality depends on the size and nature of the their realization in cash or Cash equivalents.
omission or misstatement judged in the surrounding
circumstances. The size or nature of the item, or a Other comprehensive income (OCI): OCI 49
combination of both, could be the determining factor. comprises items of income and expenses (including
reclassification adjustments) that are not recognised
Net Assets: The excess of the book value of assets in profit or loss as required or permitted by Indian
of an enterprise over its liabilities. This is also referred Accounting Standards. These are in effect unrealized
to as net worth or shareholders’ funds. gain or loss on long term assets or liabilities. The
components of OCI include: changes in revaluation
Net Profit: The excess of revenue over expenses
surplus, re-measurements of defined benefit plans,
during a particular accounting period. When the
result of this computation is negative, it is referred gains and losses arising from translating the financial
to as net loss. The net profit may be shown before statements of a foreign operation, gains and losses
or after tax. The net profit / loss do not include other from items designated / measured at fair value
comprehensive income. through other comprehensive income etc.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Property, Plant and Equipment (Fixed Assets): recognized in the accounts as per note no. 3.9
Assets held for the purpose of providing or producing in Significant Accounting Policies under Notes to
goods or services and that is not held for resale in the Financial Statements.
normal course of business
d) Amortization: It refers to the amount amortized
Provision: A provision is a liability of uncertain in respect of Intangible Assets in line with note
timing or amount which cannot be determined with no. 3.8 (i) in Significant Accounting Policies under
substantial accuracy. Notes to Financial Statements.

Participating Interest: The share expressed as a Statement of Profit and Loss: A financial statement
percentage in the rights and obligations of each party which presents the revenues and expenses of an
to a Production Sharing Contract (PSC). enterprise for an accounting period and shown the
excess of revenues over expenses (or vice versa). It is
Production Costs: Costs incurred in lifting the oil also known as Statement of Profit and Loss.
and gas to the surface and in gathering, treating and
storing the oil and gas. Total comprehensive income (TCI): TCI is the
change in equity during a period resulting from
Right of use asset: An asset that represents a transactions and other events, other than those
lessee’s right to use an underlying asset for the lease changes resulting from transactions with owners
term. in their capacity as owners. Total comprehensive
income comprises all components of ‘profit or loss’
Royalty: It is a levy imposed under The Petroleum and and of ‘other comprehensive income’.
Natural Gas Rules, 1959 payable to the respective
State or Central Government granting the lease Trade Receivable: A Receivable is classified as
(Central Government in case of offshore) on crude oil “Trade Receivable” if it is in respect of amount due for
and natural gas. goods sold or services rendered in the normal course
of business.
Recouped Cost: It refers to Depreciation, Depletion,
Impairment and Amortization charged in accounts. Trade Payable: A payable is classified as “trade
These are non-cash costs. payable” if it is in respect of amount due on account
of goods purchased or services received in normal
a) Depreciation: It is the systematic allocation of the course of business.
depreciable amount of an asset over its useful
life. It is provided for and allocated as mentioned Useful life: Life which is either (i) the period over
in note no. 3.7 in Significant Accounting Policies which a depreciable asset is expected to be used
under Notes to Financial Statements. by the enterprise; or (ii) the number of production or
similar units expected to be obtained from the use of
b) Depletion: A measure of exhaustion of Oil & Gas the asset by the enterprise.
Assets represented by periodic write off of cost.
It is computed with reference to the amortization Working Capital: The funds available for conducting
50 base by taking the related capital cost incurred day-to-day operations of an enterprise. Also it is
divided by hydrocarbon reserves and multiplied represented by the excess of current assets over
by production. It is recognised in the accounts current liabilities including short-term loans.
as per note no. 3.11 in Significant Accounting
Policies under Notes to Financial Statements. Work in Process: Work in Process includes all
materials which have undergone manufacturing
c) Impairment: An impairment loss is the amount by or processing operations, but upon which further
which the carrying amount of an asset exceeds operations are necessary before the product is ready
its recoverable amount. Impairment Loss is for sale.
 ANNUAL REPORT
2020-21

Glossary of Energy & Financial Terms

51

Finding New Plays: Seismic data acquisition in Western Offshore taking place as part
of ONGC’s constant endeavours to increase the hydrocarbon resource potetial of the
country
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Board’s Report
52 53

Board’s Report 54
Annexures to Board’s Report 92
 THE UNSTOPPABLE
ENERGY SOLDIERS

Board’s Report
Dear Shareholders, • Crude oil production including JV production was
22.533 Million Metric Tonnes (MMT) during FY’21
It gives me great pleasure to present, on behalf against 23.353 MMT during the previous year.
of the Board of Directors of your Company, the
28th Annual Report on business and operations • Natural gas production including JV production
of Oil and Natural Gas Corporation Limited and its was 22.816 Billion Cubic (BCM) against 24.896
Audited Statements of Accounts for the financial year BCM during FY’20.
ended March 31, 2021 (FY’21), together with the
Auditors’ Report and Comments on the Accounts by Value Added Products (VAP) production was 3.120
the Comptroller and Auditor General (CAG) of India. MMT against 3.548 MMT during FY’20.

Currently, COVID-19 overshadows business activity Backed by an intensive and continuous exploration
and the energy industry is inevitably affected. programme, your Company declared ten (10) oil and
COVID-19 is a definitive black swan event exacting gas discoveries (three - on-land and seven - offshore)
enormous human and material loss on the world. during the year 2020-21 in its operated acreages.
Once we overcome this mammoth challenge – which Out of these, six are prospects (one -on-land and five
we certainly will, we shall only become stronger to - offshore) and four are pools (two - on-land, two -
face similar challenges in the future. offshore).

Energy is central to the modern society, the economy During the year 2020-21, accretion of In-place volume
and energy landscape is changing – so is the narrative and EUR (Estimated Ultimate Reserves) in 2P reserves
around it. category from ONGC operated areas in India was
92.37 MMTOE and 50.31 MMTOE respectively.
Many factors have come into play that have brought
us to this fork in the road – climate change concerns, Reserve Replacement Ratio (RRR – 2P EUR) from
sustainability, safety, low commodity prices, efficiency, domestic fields was 1.19 with respect to 2P reserves.
the emergence of the conscientious and aware With this, your Company maintained Reserve
consumer – and now COVID-19, that has brought in a
Replacement Ratio (2P) of more than 1 for the
whole new way of working and doing business – the
15th consecutive year.
‘new’ normal.
Your Company has four direct subsidiaries, namely
All along, our primary goals have been to keep up the
ONGC Videsh Limited (OVL), Mangalore Refinery
healthy pace of project execution, sustain our base
and Petrochemicals Limited (MRPL), Hindustan
production, optimize operating costs and improve
54 the value proposition for stakeholders while doing
Petroleum Corporation Limited (HPCL) and Petronet
MHB Limited (PMHBL).
business safely and reliably. Despite attending to
unprecedented challenges of the business and its Your Company also has nine Associates/ Joint
surrounding environment, your Company along with Ventures, namely ONGC Petro additions Limited
its group companies has registered yet another year
(OPaL), ONGC Tripura Power Company Limited
of sustained performance and made substantial
(OTPC), ONGC TERI Biotech Limited (OTBL), Dahej
progress on most of these priority areas.
SEZ Limited (DSL), Mangalore SEZ Limited (MSEZL),
Despite the challenges posed by pandemic, your Indradhanush Gas Grid Limited (IGGL), Pawan Hans
Company’s production (including JV production) Limited (PHL), Petronet LNG Limited (PLL) and Rohini
during the year was 45.350 Million Metric Tonnes of Heliport Limited (RHL).
oil and oil equivalent gas (MMTOE) (against FY’20
production of 48.248 MMTOE).
 ANNUAL REPORT
2020-21
1. Major Highlights: FY’21 viii. A Memorandum of Understanding (MoU) has
been signed by ONGC Energy Centre (OEC)
The major highlights during FY’21 are: with the Union Territory of Ladakh and Ladakh
Autonomous Hill Development Council, Leh on
i. Revenue from operations in FY’21 stood at
06.02.2021 for taking up first Geo-thermal energy
`681,411 million against `962,136 million in
pilot project in Ladakh on pilot basis wherein it is
FY’20.
planned to drill Geo-Thermal well and establish
ii. Net profit in FY’21 was `112,464 million against 1MW power plant at Puga, Ladakh. This project
`134,637 million (restated) during FY’20 mainly will put India on Geothermal Power map of the
due to lower realisation on Crude Oil, Natural world.
Gas and VAPs. ix. Your Company placed Notice of Award (NoA) to
seven successful bidders in 13 contract areas
iii. Your Company drilled 480 wells (Exploratory
comprising of 49 marginal oil and gas fields. This
wells: 100; Development and Side Track wells:
is intended to collaborate with private players for
380) despite fewer Rig Months and lockdown
technology partnership for enhancement and
due to COVID-19 (against 500 wells during
augmentation of production.
FY’20).
x. Hazira plant supplied 3,300 KL volume of NATO
iv. Your Company firmed up plans to create a new
Grade HSD to Indian Navy during COVID-19

Board’s Report
wholly owned subsidiary company for Gas & pandemic on 09.05.2020 to meet an urgent
LNG business value chain. The said subsidiary requirement for Samudra Setu mission to
shall engage in the business of sourcing, repatriate expatriates stranded in neighbouring
marketing and trading of natural gas, LNG, countries due to COVID-19 pandemic.
Hydrogen enriched CNG (HCNG), Gas to Power
business, bio-energy/ bio-gas/ bio methane/ xi. Well Services Section (WSS) of Ahmedabad
other bio fuels business. has been granted patent for novel formulation
“Fracturing Fluids for Hydro Fracturing Using
v. Your Company acquired 5% equity in Indian Gas Sea Water” on 20.05.2020. The present Patent
Exchange Ltd (IGX) as strategic investment. IGX relates to sea water based fluid for fracturing of
is presently India’s first and only authorized subterranean formation.
Gas Exchange which provides an automated
platform for trading of natural gas, covering xii. Silchar Exploratory Asset, started gas supply
wide range of products. This acquisition will to Assam Gas Company Ltd (AGCL) from
contribute in achieving the Government of 21.10.2020 post completion of Banskandi GCS
India’s vision for increasing the share of natural (Gas Compressor Station). The Asset had further
gas from 6% to 15% in energy basket. monetized the Bhubandar field on 07.12.2020 55
by connecting the well BU-7 to South Banskandi
vi. During lockdown, your Company undertook a GCS after completing 23 km pipeline. Gas from
massive exercise to replace its crew in offshore this project will mainly be feeder to CGD network
and onshore fields. Your Company obtained and North East (NE) Gas Grid, a part of Urja
permission from the Director General of Civil Ganga Scheme.
Aviation to use chartered flights for changeover
xiii. The Bengal basin was dedicated to the nation
of crew and ensured uninterrupted operations.
as 8th producing basin of India, on 20.12.2020
vii. Long-term mix of borrowings were re-aligned at Asokenagar in West Bengal. With this, your
during the current fiscal year. Company has discovered seven out of eight
producing basins of the country.
 THE UNSTOPPABLE
ENERGY SOLDIERS
xiv. MBA (Mahanadi, Bengal & Andaman) Basin, Characterization Instrument) was successfully
Kolkata commenced transportation of oil deployed in a development well RS-18#10 for
collected during reactivation of well Asokenagar-1 sampling oil from L-I (b) pay. This was the first
to Haldia Refinery on 05.11.2020. This marked well wherein the presence of oil was established
the first step towards early monetization of first in L-I in Mumbai High South. Further efforts
discovery in the Bengal-Purnea basin. are on to establish the extent of L-I reservoir in
Mumbai High south.
xv. Exploratory well BH-79 was drilled to explore
the hydrocarbon potential of Basal Clastics and xxi. Tripura Asset has successfully executed a pilot
Basement. The well was tested for hydrocarbons project of installation and commissioning of
in August 2020. After requisite study and Self-Assisted Plunger Lift (SAPL) system in
analysis, it has been put on production. This five gas wells. This has resulted in cumulative
is a significant lead towards further exploration improvement in gas production from the five
of Basal Clastics and Basement Reservoir in wells by about 60,000 SCMD.
Mumbai offshore.
xxii. Your Company has obtained 10 patents in FY’21
xvi. The oil production in Lakwa area of Assam Asset and also applied for registration of additional
crossed daily production mark of 500 m3/day in 6 patents.
December 2020. The production milestone was
reached after a gap of three years. 2. Global Recognitions - Awards and Accolades

xvii. The use of Simultaneous Exploration (SIMEX) Consistent with the trend in preceding years,
approach, along with development drilling in your Company, its various Operating Units and
its Senior Management have been recipients of
recent past in matured Kalol field, has resulted in
various awards and recognitions, including the
successful finding of K-XII pay sand (outside the
following prestigious awards:
REC Limit) in development well KL#851 of Kalol
field. After Hydro-fracturing and SRP (Sucker a) ONGC was ranked 11th among global
Rod Pump) installation, the well has been put on energy majors in the coveted Platt’s Top
production from K-XII pay sand. 250 Global Energy Company Rankings
2020 based on assets, revenues, profits
xviii. The oil production in Padra field of Cambay
and return on invested capital.
Asset has reached a level of over 330 Tonnes/
day in January 2021 – all time high production b) Forbes has ranked the Company 13th
of Padra field since formation of Cambay Asset. largest in India and 665th worldwide in
Global 2000 list based on sales, profit,
xix. Rajahmundry Asset produced the highest ever
assets and market value.
56 gas in Mandapeta field @ 0.715 MMCMD by
optimizing new wells placements and hydraulic c) ONGC is ranked 243rd globally and 4th in
fracturing for improved productivity in tight India in 2021 ranking of Fortune Global 500
and heterogeneous Mandapeta sands. The list.
production reached this level after a gap of
20 years. d) ONGC is ranked 377th in Forbes list of
“World’s Best Employers”.
xx. Reservoir Analysis to establish extension of L-I
Reservoir in Mumbai High South: RCI (Reservoir Detail of such awards and accolades is placed at
Annexure- ‘A’.
 ANNUAL REPORT
2020-21
3. Details of discoveries

During the FY 2020-21, your Company has notified ten new discoveries (six prospects and four pools) in
acreages operated by it. Out of these, 7 are in nomination blocks and 3 in NELP block of KG- DWN -98/2.
Details of the new discoveries are:

Sl. Well Basin/ Block Prospect/Pool Hydrocarbon

No. Type
1 KGD982NA-CHN-B-1 KG Offshore DW/ KG-DWN-98/2 CL-II PML Prospect Gas
2 KU#13(KUDD) KUNJABAN PML, Tripura Pool Gas
3 KGD982NA-R1-E#1(AA) Cluster II PML of KG-DWN-98/2 Pool Gas
4 Kavitam South-1 KG onland/ PML-Kavitam Prospect Gas
Onland /PML-Kavitam Additional PML
5 SD#16(SDAP) West Tripura PML, Tripura State Pool Gas
6 KGD982NA-PDM-SH-1(AA) Cluster II NELP PML of KG-DWN-98/2 Pool Oil
7 BS-17-1 Western Offshore/ West of Bassein PML Prospect Oil & Gas

Board’s Report
8 B-126-1 Western Offshore / West of Bassein PML Prospect Oil & Gas
9 GK-28-14 Kutch Offshore/ GK-28 PML Prospect Gas
10 WO-5-13 Western Offshore / BOFF PML Prospect Oil & Gas

57
 THE UNSTOPPABLE
ENERGY SOLDIERS
4. Reserve Accretion and Reserve Position During the FY 2020-21, the Estimated Ultimate
Recovery (EUR) accretion in 2P category from
Your Company migrated to PRMS (Petroleum ONGC operated areas in India has been 50.31
Resource Management System) for estimation MMT of O+OEG.
of hydrocarbon reserves w.e.f. 01.04.2019. With
this approach, during FY 2020-21, accretion of • 11.59 MMTOE (about 23%) of 2P EUR
In-Place Hydrocarbons (2P), from the Company have been accreted from New Discoveries/
operated elds in India, stood at 92.37 MMTOE. prospects; and

• 25.73 MMTOE (about 28 percent)of 2P • 38.72 MMTOE (about 77%) of 2P EUR

In-place volume have been accreted from have been accreted from eld growth.
New Discoveries/prospects; and
Accretion of In-Place Hydrocarbons and
• 66.64 MMTOE(about 72 percent) of 2P Estimated Ultimate Recovery (EUR) by the
In-place volume have been accreted from Company in its operated areas and in Non-
eld growth. Operated areas (JV Share) during FY’21 and
position of In-Place Hydrocarbons and EUR as
on 01.04.2021 were as below:

Units in MMTOE
In-Place Hydrocarbon volumes and Estimated Ultimate Recovery (EUR)
Accretion During the year 2020-21 Position as on 01.04.2021
Reserve Type Company JV-Domestic Total Company JV-Domestic Total
Operated (ONGC Operated (ONGC
Share) Share)
In-place Hydrocarbon 2P 92.37 6.8 99.17 8,236.27 674.61 8,910.88
3P 47.17 5.74 52.91 9,245.42 697.91 9,943.33
EUR 2P 50.31 0.86 51.17 3,055.74 91.53 3,147.27
3P 41.76 1.16 42.92 3,274.16 92.04 3,366.20
Note: EUR position as on 01.04.2021 (EUR=Cumulative Production + Reserves + Contingent Resources)

Position of Reserves and Contingent Resources as on 01.04.2021

As per PRMS# Category Company JV Operated Total
Operated
Reserves 2P 720.57 18.52 739.09
3P 777.61 19.03 796.65
Contingent Resources 2C 447.93 - 447.93
3C 609.3 - 609.3
Note: As per PRMS adopted w.e.f 01.04.2019
 ANNUAL REPORT
2020-21
The details of Reserve Accretion (EUR) 2P for the last 6. Enhanced Recovery (ER) Proposals
ve years in Company’s basins are given below.
Under ER Policy of Govt. of India, your Company
Units in MMTOE had submitted 23 ER proposals. Out of these, 16
proposals were approved by Director General of
Year Company Company’s Total
Assets (1) share in JVs (3)=(1)+(2) Hydrocarbon. For the rst time, your Company
(2) executed a pilot Polymer Flood project in heavy
oil eld of Mehsana. The Pilot was initiated in
2016-17 64.32 0.22 64.54 May, 2019 and completed in September, 2020.
The pilot was successful in achieving all its
2017-18 67.83 1.02 68.85
objectives. The incremental gain is 5,057 m3 in
2018-19 63.02 11.45 74.47 13 months against FR envisaged incremental
gain of 4,960 m3 in 13 Months. Commercial
2019-20 53.21 1.74 54.95 plan envisages incremental oil gain of 1.85 MMT
(~ 5 % over BAU) and recovery 22.5 % by 2040.
2020-21 50.31 0.86 51.17
7. Monetization of Discoveries
5. Award of Blocks
Your Company monetised a total of 12
ONGC, under OALP-V bidding round concluded discoveries during FY 2020-21.
during FY 2020-21, has been awarded seven
blocks; one ultra-deep water block in Cauvery, Out of ten new discoveries made during FY 2020-
two shallow water blocks (Mumbai and 21, two on-land discoveries viz. Sundalbari-16
Saurashtra) and four onland blocks (two in and KU-13 have already been monetized.
Cambay and one each in Bengal-Purnea and Besides, ten (10) other discoveries of previous
Kutch onland). This has added about 12,766.09 years i.e. Tichna, Bhubander, Bhubander-6,
Km2 of exploration acreage area in ONGC’s Ashokenagar-1, R-13, R-9, Sundalbari-15,
exploration portfolio. Your Company is holding GS-15 E, Gojalia-1 and B-45 have also been
24 blocks having 46,313.36 Km2 acreage area monetized.
under OALP bidding rounds I to V.
Monetization of Ashoknagar-1 discovery makes
All the awarded OALP blocks are currently in the Bengal basin as the eighth commercially
exploratory phase. As on 01.04.2021, in OALP producing basin of the country. This has resulted
blocks, ONGC has cumulatively acquired 1,543 in up-gradation of Bengal basin to Category-I
LKM (1,233 LKM acquired during FY 2020-21) basin as per the new three tier category of
of 2D data and 6,699.49 SKM (5,179.12 SKM sedimentary basins of India.
acquired during FY 2020-21) of 3D seismic data.
 THE UNSTOPPABLE
ENERGY SOLDIERS
8. Major Projects Completed

Details of three major projects (1 Development and 2 Infrastructure) completed with an investment of
`33,325 million during the year 2020-21 are as below:

Sl. Project Name Completion Actual Cost Oil gain Gas Gain
No. Date (` in Million) (MMT) (BCM)

1 Neelam Redevelopment Plan, NH Asset 09.04.2020 25,433 2.76 4.786

2 Pipeline Replacement Project-V, 17.04.2020 6,653 NA NA

Western Offshore

3 Gojalia GCS & Pipelines Project, 30.03.2021 1,239 NA NA

Tripura Asset

Total 33,325 2.76 4.786

a) Projects under implementation: side-track wells. The major reason for shortfall in
drilling of wells can be attributed to the constraints
As on 31.03.2021, fifteen major projects emerging out of National Lockdown imposed for
were under implementation with a total containment of spread of COVID-19.
project cost of around `605,015 million
with envisaged oil and gas gain of ~113 • Your Company was able to complete
MMTOE. two Ultra-Deepwater wells KGD982NA_
UD#AG (WD-2832m, DD-5536) and
b) Projects Approved in 2020-21 KGD982NA_UD#AF (DD-5450m) in KG
deep water.
During the year, 1 major project
(Redevelopment of Nandasan Field in • Managed Pressure Drilling (MPD) was
Mehsana Asset) was approved at the introduced in Tripura Asset.
cost of `4,448.70 million, with planned
completion date of 10.08.2022. The Project • Rajahmundry Asset drilled 4 HP-HT wells:
envisages incremental production of 0.735 AVTAA, PRWAA, BTSAE and SVLAB, where
MMT of Oil and 0.195 BCM of Gas by the bottom hole temperature varied between
year 2036-37. 174°C to 195°C.

60 9. Drilling of Wells 10. Oil and Gas Production

Your Company drilled 480 wells during FY’21 Details of production, sales quantity and value,
(500 wells during FY’20). 100 were exploratory product wise during FY’21 with comparison of
wells and 380 were development wells including FY’20, are as under:
 ANNUAL REPORT
2020-21

Board’s Report
61

Installation of sub-sea tree in progress for KG-DWN-98/2 - ONGC’s prestigious deep-

water project on the East Coast of India
 THE UNSTOPPABLE
ENERGY SOLDIERS

Description Unit Production Qty. Sales Qty. Value (` in million)

FY'21 FY'20 FY'21 FY'20 FY'21 FY'20

Crude Oil (MMT) 22.53 23.35 20.71 21.34 479,338 6,48,363

Natural Gas (BCM) 22.82 24.90 17.69 19.40 114,216 1,93,556

Value Added Products (VAP)

Liquefied Petroleum Gas 000 MT 1,014 1,013 1,011 1,011 31,973 36,038

Naphtha 000 MT 941 1,115 915 1,177 26,081 39,863

Ethane-Propane 000 MT 242 345 241 346 4,963 8,155

Ethane 000 MT 483 536 483 535 9,741 12,937

Propane 000 MT 187 224 183 219 6,051 7,251

Butane 000 MT 97 125 97 125 3,207 4,208

Superior Kerosene Oil 000 MT 36 54 36 58 934 2,617

& MTO

Others* 000 MT 120 135 62 88 2,405 4,026

Sub Total (VAP) 000 MT 3,120 3,548 3,028 3,559 85,355 1,15,095

Total 678,909 9,57,014

*Others include ATF, Sulphur-P, Sulphur-C, LSHS, HSD, LDO and MTO

11. Production from Overseas Assets - ONGC less compared to FY’20 production of 5.226
Videsh Ltd BCM. The production was mainly impacted by
compliance to production cuts agreed upon
62 Your Company’s overseas operations are by the host governments of OPEC+ group
carried out exclusively through its wholly owned of countries in Russia, UAE, and Azerbaijan.
subsidiary, ONGC Videsh Limited (OVL), which Geopolitical situation had also impacted
in turn conducts its operations either directly production from two projects in Venezuela viz.
or through its subsidiaries. Production from Sancristobal and Carabobo-1. Other key factors
overseas assets during FY’21 was 13.039 affecting overseas production include natural
MMTOE in comparison to 14.981 MMTOE decline, early water breakthrough in Block
achieved during FY’20; a decrease of approx. 06.1, Vietnam, COVID-19 impact on drilling
13%. The oil production during FY’21 was 8.510 schedule and deferment of Capex activities; and
MMT; 12.8% less compared to the production optimization of Capex and Opex due to low oil
of 9.755 MMT during FY’20. The gas production price scenario.
of 4.529 BCM during the year was 13.3%
 ANNUAL REPORT
2020-21
12. COVID-19 and ONGC’s response b) Basement Exploration:

Your Company was one of the first companies Concerted efforts for Basement exploration-
to roll out COVID appropriate protocol. It kept an a frontier exploration play, has been taken
emphasis on the protection of people, materials up by the Company as a major initiative.
and resources and at the same time ensured Your Company has achieved success in
continuity of exploration in onshore and offshore Mumbai Offshore, Kutch offshore, Cauvery,
and production operations. Cambay, and A&AA Basin and has
been producing from Mumbai Offshore,
During lockdown and non-availability of flights, Cambay, Assam & Assam Arakan and
railways and road transport, ONGC carried out Cauvery basin. During the year 2020-21,
Operation Nishtha - the biggest roll over of crew a total 23 wells were drilled for Basement
for Offshore rigs, platforms and installations (15 exploratory and 08 development
through creation of bio-bubbles and hubs. wells). Out of 23 wells drilled, 14 wells are
hydrocarbon bearing (5 exploratory and
ONGC reached out to every stakeholders
9 development wells) and 02 wells are
in different parts of the country to make
under drilling as on 01.04.2021. Besides,
available basic amenities during pandemic and
several G&G Interpretation projects
contributed `3,000 million to PM Cares Fund.
on Basement fracture characterization
ONGCians also voluntarily contributed `300

Board’s Report
in Narsimhapuram- Kovilkalappal-
million from their salary.
Thiruthuraipundi-Tulsapattinam area of
Along with erosion of demand due to pandemic, Cauvery Basin and in South of Mumbai
there was crash in crude oil prices, which High PML and adjoining B-119-121
required rolling out a sustainable survival ML area were also attempted including
strategy to meet all operational needs with Static modelling of Madanam Basement
available cash. reservoir.

13. Other Exploration Initiatives/Activities Supportive fiscal incentives for Basement

reservoir may provide boost in Basement
a) National Seismic Programme (NSP) exploration and exploitation in India.

To accomplish its mandate of 2D seismic c) HP-HT Exploration:

Acquisition, Processing & Interpretation
(API) of 42,211 LKM assigned by HP-HT and Tight reservoirs have been a
the Government of India (GoI) in un- challenge for your Company due to bore-
appraised areas of Indian sedimentary hole complications, fluid design, high-
basins grouped in 11 on-land sectors, cost drilling technology including HP-HT 63
your Company, as on 31.03.2021, has cementing, well construction and other
completed data acquisition of 41,137.01 reservoir engineering problems. Despite
LKM (97.46%) and has processed these challenges, your Company has
about 39,268.43 LKM (93%) of seismic successfully established hydrocarbon
lines. Your Company had completed the in Bhuvnagiri, Malleswaram, Periyakudi,
interpretation of about 35,047.29 LKM Kottalanka, Bantimulli South, Yanam
(83.02%) on 31.03.2021. This data in turn shallow offshore, GS-OSN-2004, G-4-
would contribute in augmenting domestic 6 and certain areas of Assam Arakan
production of oil and gas. Fold Belt.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Presently, plays are being targeted mainly Formulation of Revised FDP and Techno
in KG, Cauvery, and Western Offshore economics is fast tracked to initiate
Basins where such environment have development activities.
been encountered during exploration for
deeper pays. These plays have been an b) Shale Gas:
exploration challenge for drilling, as well
Under the Shale Gas/ Oil Exploration and
as for testing. During 2020-21, 03 wells
Exploitation Policy of Govt. of India, during
viz. Akanvaritota-1,Pendurru West-1 South
2020-21, your Company has completed
Velpuru-2 are under testing whereas well
one dual objective well Lakshmipuram
Bantumili South-4 was completed as a dry
East-1 in KG Onland with gas indication.
well with gas indications. As on 31.03.2021,
Your Company has completed coring
one well Tundurru-1 is under drilling in KG
and other shale specific data collection
Basin.
programme in 30 wells (10 exclusive and
14. Exploration and Production from 20 dual objective wells) in 25 identified
Unconventional Sources nomination blocks spread over four basins
viz. A&AA, Cambay, Cauvery and KG
a) Coal Bed Methane (CBM): Basins.

Your Company has been operating four c) Underground Coal Gasification (UCG):
CBM blocks in Jharia, Bokaro and North
Karanpura in Jharkhand and Raniganj in Your Company has taken an initiative to
West Bengal. test the UCG technology in India for which
all the ground work has been completed
Exploration activities have been completed with obligatory inputs for construction and
in these blocks and developmental implementation of UCG R&D Pilot Project
activities are at an advanced stage in all at Vastan Mine block site belonging to
the three blocks viz Bokaro, Jharia and Gujarat Industries Power Company Limited
North Karanpura. (GIPCL) in Naninaroli, district Surat,
Gujarat.
During FY 2020-21, 19 wells were drilled in
Bokaro CBM block and 01 well was drilled All State PSUs of Gujarat, including MOU
in Jharia CBM block. Hydro fracturing partner GIPCL, have backed out of the
was performed in 23 wells followed by UCG project due to the low calorific value
dewatering by lowering artificial lifts in 17 of the Syngas.
wells and Gas break-in was observed in 16
Additionally, processing of gas at surface
64 wells.
shall be a challenge as Syngas has many
In North Karanpura block, total 35 wells impurities & contamination and non-
were drilled. Hydro fracturing is done in 30 availability of business partners from Coal/
wells and gas break-in is observed in 11 Chemical/ Power sectors for business
wells. ease during pilot/ commercialization.
Considering all the factors and current gas
In Raniganj block, PML (Petroleum Mining price scenario, your Company is of the
Lease) grant had been received from opinion that it is not prudent to venture into
Govt. of West Bengal w.e.f. 09.06.2019. this business at this juncture.
 ANNUAL REPORT
2020-21
d) Gas Hydrate Exploration Program 15. Infrastructure Up-gradation

Your Company has been an active Several policy decisions have been taken for
contributor on gas hydrates exploratory the introduction and induction of new advanced
research under National Gas Hydrate equipment as well as up-gradation of existing
Program (NGHP) of Govt. of India since resources with State-of-the-Art equipment to
its inception in the year 1997. So far, remain competitive in the global E&P business.
ONGC, as a NGHP Consortium Member Your Company has taken actions to refurbish,
of GoI has played a significant role in G&G upgrade and replace its Onshore/Offshore
studies for the identification of sites for drilling rigs, Workover rigs, Cementing units,
NGHP-01 and NGHP R&D Expedition-02 Crisis Management equipment in various
and successfully completed on-board phases. Major Infrastructure Up-gradations are
studies. Based on the results of NGHP- as under:
02, two world class gas hydrate reservoirs
have been discovered (Block KG-DWN- • 38 new WSS units were inducted thereby
98/5 and Block KG-DWN-98/3). enhancing the Frac Setups at Rajahmundry,
Assam and Ahmedabad.
Based on the post-expedition studies and
review by international experts, the site • Two State-of–Art hydraulic drilling rigs
located in KG-DWN-98/5 has been found are under commissioning at Ahmedabad

Board’s Report
suitable for pilot production test during Asset.
NGHP-03 expedition for which various
• 25 State-of-Art drilling rigs and 20
studies like sand control measures,
Automated Hydraulic Workover rigs are
well design, reservoir and production
under advanced stage of manufacturing
simulation modelling as prerequisite for
and shall be delivered in 4 lots in 2021 &
the pilot production have been completed.
2022.
Presently, Gas Hydrate Research &
16. Information Technology
Technology Centre (GHRTC) of ONGC is
involved in R&D activities in exploration • On the Information Technology (IT)
for gas hydrate prospects in Indian front, Satellite communication network-
Deep waters and potential exploitation comprising of 176 sites at onshore and
methodologies for gas hydrates through 25 sites at offshore were successfully
in-house efforts and PAN IIT collaborations. revamped with latest technology and
enhanced bandwidth for seamless
Your Company is gearing up for the first
connectivity at remote locations.
ever pilot production test in deep waters
Replacement of existing IT hardware in
65
for gas hydrate.
compliance with SAP-HANA requirement is
Your Company has signed MoU with in progress. Production & Drilling SCADA
initial validity of five years on 02.03.2021 systems are also being upgraded.
with Skolkovo Institute of Science
• Bandwidth was enhanced by 400% and
and Technology (Skoltech), Moscow
VPN based remote access was provided to
for collaborative studies to establish
ONGCians to access paperless approval
cooperation in the Gas Hydrate Research
process DISHA and ONGC ERP System
& Technology applicable to Indian Basins.
– ICE to work from home during Covid
 THE UNSTOPPABLE
ENERGY SOLDIERS
lockdown, with uninterrupted 24x7 remote
Particulars ` in Million
IT support to user.
2020-21 2019-20*
• A Digital Centre of Excellence has been
established to scout and induct latest Revenue from operations 681,411 962,136
Industry 4.0 technology for enhancing
efficiency in E&P operations. Other Income 71,425 66,102

• Internet-based Video Conferencing Total Revenue 752,836 1,028,238

facilities were provided to organize virtual
Profit Before Interest 335,697 472,135
meetings and monitor field operations Depreciation & Tax (PBIDT)
during national lockdown imposed due to
Covid-19 pandemic. Profit Before Tax (PBT) 164,028 203,878

• In the field of Information security, Enterprise Profit After Tax (PAT) 112,464 134,637
Wide Access Control System (EACS) is
nearing completion with 98.75% progress Transfer to General Reserves 75,400 50,094
achieved despite Covid-19 related set- * re-stated figures.
backs and Information Security Operation
Centre (ISOC) has been implemented. Material Changes and commitments affecting
the financial position of the Company:
17. Financial Highlights
There have been no material changes and
Your Company earned Profit After Tax (PAT) of
commitments, which affect the financial position
`112,464 Million, down by 16.47% over FY’20
of the Company, which have occurred between
(`134,637 Million - restated) and registered
the end of the financial year to which the financial
Revenue from Operations of `681,411 Million,
statements relate and the date of this Report.
down by 29.18% over FY’20 (`962,136 Million)
mainly due to lower crude and gas price 18. Issue /change in Share Capital and Debt
realization during the year. Structure

Highlights – Standalone Financial Statements 18,972 equity shares of `10 each (equivalent
to 37,944 equity shares of `5 each) which
• Revenue from Operations : `681,411 Million
were forfeited in the financial year 2006-07 were
• Profit After Tax (PAT) : `112,464 Million cancelled during the year and accordingly the
partly paid-up amount of `0.15 million against
• Contribution to Exchequer : `260,773 Million these shares has been transferred to the Capital
66
• Return on Capital Employed : 12.23%. Reserve.

• Debt-Equity Ratio : 0.07:1 Issue of Non-Convertible Debentures (NCDs)

• Earnings/ Share : `8.94 In FY’21, the Company raised `41,400 million

(Face value /share `5) by issue of NCDs on private placement basis as
per below details:-
• Book Value/ Share : `163
 ANNUAL REPORT
2020-21

Series of NCDs Issue Size Date of Issue Coupon Rate (per annum) Maturity Date
Series-I `5,000 million 31.07.2020 5.25% 11.04.2025
Series- II `10,000 million 11.08.2020 6.40% 11.04.2031
Series- III `11,400 million 21.10.2020 4.64% 21.11.2023
Series-IV `15,000 million 11.01.2021 4.50% 09.02.2024

Utilisation of proceeds of NCDs: - the applicable provisions of the Companies Act,

2013 including Indian Accounting Standards
Your Company utilized the proceeds of NCDs for the (Ind AS) and Guidance Note on Accounting for
purposes as set out in the respective prospectus. Oil and Gas Producing Activities issued by the
Institute of Chartered Accountants of India.
19. Dividend
Secretarial Standards:
Your Company paid an interim dividend of `1.75
per share of `5 each (@35%) in February 2021 The Company has complied with the applicable
amounting to `22,015 million. Secretarial Standards issued by the Institute of
Company Secretaries of India.
Further, the Board of Directors has recommended

Board’s Report
final dividend of `1.85 per share of `5 each 22. Loans, Guarantees or Investments
(@37%) amounting to `23,274 million subject to
your approval at the forthcoming AGM. The total Your Company is engaged in Exploration &
dividend pay-out for FY’21 would be `45,289 Production (E&P) business which is covered
million with pay-out ratio of 40.27%. under the exemption provided under Section
186(11) of the Companies Act, 2013. Accordingly,
The Dividend Distribution policy of the Company, the details of loans given, investment made or
may be accessed at the web link: https://www. guarantee or security given by the Company to
ongcindia.com/wps/wcm/connect/en/investors/ subsidiaries and associates is not reported.
policies
23. Details relating to deposits covered under
20. Management Discussion and Analysis Report Chapter V of the Act
In the terms of regulation 34(2)(e) of the Your Company has not accepted any deposits
SEBI (Listing Obligations and Disclosure) during the year. Further, there was no outstanding
Regulations, the Management Discussion and deposit and/or unpaid or unclaimed principal
Analysis Report (MDAR) as appended, forms amount or interest against any deposits either at 67
part of this report. the beginning or at the end of FY’21.
21. Financial Accounting and Secretarial 24. Credit Rating of Securities
Standards
Details of the Credit Ratings of Debt Securities
The Financial Statements of the Company for of the Company as on 31.03.2021:
FY’21 have been prepared in compliance with
 THE UNSTOPPABLE
ENERGY SOLDIERS

1 Name International Bonds International Bonds Commercial Paper Non-Convertible

of Debt (Senior unsecured notes) (Senior unsecured up to `100,000 Debenture upto
Security issued by company notes) issued by Million outstanding `50,000 Million
and subsidiaries which company and at any point of time
are guaranteed by the subsidiaries which
company are guaranteed by the
company
2 Credit Rating : Baa3 (Negative) BBB- (Stable) [ICRA]A1+, CARE [ICRA] AAA
Rating [Including for Issuer [Including for Issuer A1+ (Stable), IND AAA
obtained Rating] Rating] (Stable)
3 Name of Moody’s Investors S&P Global Ratings ICRA Limited ICRA Limited
the credit Service (ICRA), CARE (ICRA), India
rating Ratings Limited Rating and
agency (CARE) Research Private
Limited(IRRPL)
4 Date on February 2005 and November 2012 and ICRA: 18.06.2018 ICRA: 17.07.2020
which annual surveillance annual surveillance and periodical and periodical
the credit thereon every year. thereon every year. surveillance and surveillance and
rating was revalidation from revalidation from
obtained time to time. time to time.
CARE: 25.06.2018 IRRPL: 23.07.2020
and periodical and periodical
surveillance and surveillance and
revalidation from revalidation from
time to time. time to time.
5 Revision in Yes, foreign currency Not Applicable Not Applicable Not Applicable
the credit rating and Local issuer
rating Rating is downgraded
from Baa2 to Baa3
68
6 Reasons Pursuant to downgrade Not Applicable Not Applicable Not Applicable
provided of India’s sovereign
by the rating from Baa2 to Baa3
rating on 01.06.2020, Moody’s
agency Investor Services had
for a downgraded Company’s
downward local and foreign
revision, if currency issuer and issue
any rating from Baa2 to Baa3
on 02.06.2020.
 ANNUAL REPORT
2020-21
On 01.07.2021, Fitch Ratings has assigned Gross consolidated revenue from operation of
“BBB-“rating with negative outlook to the ONGC Videsh for FY’21 was `1,19,558 million
international bonds (Senior unsecured notes) (against `1,54,980 million during FY’20) and
issued by the Company and subsidiaries which the PAT registered was `18,859 million during
are guaranteed by the Company. FY’21 as against `4,352 million during FY’20.
The increase in profit was mainly on account of
25. Investor Education and Protection Fund lower impairment reported as exceptional items
(IEPF) and lower tax expense.
Details of transfer of unclaimed dividends and Significant Financial/Funding activities
eligible shares to IEPF have been placed in the
Corporate Governance Report, which forms part • Overall borrowing of ONGC Videsh Group
of this Annual Report. reduced by USD 271.71 million during the
FY’21;
26. Related Party Transaction
• USD 700 million Syndicated loan concluded
Particulars of contracts or arrangements with successfully for part refinancing USD 775
related parties as referred to in Section 188(1) of million syndicated loan on maturity.
the Companies Act, 2013, is provided in specified
Form AOC-2, and placed at Annexure-‘B’. Memorandum of Understanding (MoU)

Board’s Report
27. Subsidiaries ONGC Videsh has executed the extended MOU
with GeoPark Limited, a Latin America focused
a) ONGC Videsh Limited E&P company, on 12.02.2021 to jointly acquire,
ONGC Videsh Ltd, the wholly-owned subsidiary invest and value addition from upstream oil
and overseas arm of your Company for and gas opportunities and also to jointly build
carrying on E&P activities, had participation a large-scale, economically rewarding risk-
as on 01.04.2021 in 35 oil and gas projects balanced portfolio of upstream assets across
in 15 countries., viz. - Azerbaijan (2 projects), Latin American region.
Bangladesh (2 Projects), Brazil (2 projects), Significant events in the area of Exploration &
Colombia (7 projects), Iran (1 project), Iraq Operations:
(1 project), Libya (1 project), Mozambique
(1 Project), Myanmar (6 projects), Russia (3 1. ACG, Azerbaijan
projects), South Sudan (2 projects), Syria (2
projects), UAE (1 project), Venezuela (2 projects) The Operator has been regularly
and Vietnam (2 projects). In FY’21, ONGC introducing new technologies such as
Videsh has relinquished 2 exploration projects, Multi-zone producers, Multi-zone water 69
viz., Satpayev, Kazakhstan and Block-32, Israel. injection and improved gravel packs for
better sand management to sustain and
ONGC Videsh portfolio as on 01.04.2021 improve production. During FY’21, 5 Nos.
comprised 14 producing, 4 discovered/ under of Multi-zone Water Injector wells (with
development, 14 exploration and 3 pipeline Down Hole Flow Control device) were
projects. ONGC Videsh was Operator in 12 drilled and completed for better sweep
projects, Joint Operator in 6 projects and non- efficiency. Also, the first comingled well was
operator in the remaining 17 projects. Share completed for improved reservoir recovery
of ONGC Videsh in production of oil and oil by producing from major and minor zones
equivalent gas (O+OEG) is provided at para 11 of Balakhany Reservoir in the Deep Water
above. Gunashli area of the field.
 THE UNSTOPPABLE
ENERGY SOLDIERS
2. Sakhalin-1, Russia which was contributing around
88% of MECL production, MECL is
a. Project successfully achieved evaluating various strategic options
production of 1 billion barrels of oil for the future course of action.
in February 2021. Since 2005, the
project has successfully implemented b. MECL has decided to divest the
cutting edge technologies, drilled Velasquez-Galan pipeline (189 Km,
record length wells & maintained 50,000 BOPD capacity) as a part of
reliable operations to produce and strategic decision.
load crude oil in more than 1,450
tankers at De-kastri Export Terminal 5. A1 & A3, Myanmar
without a single oil spill incident.
a. Cabinet Committee on Economic
b. Consequent to the Consortium Affairs of GoI on 24.06.2020 approved
approval of 6.2 MTA Russian Far additional investment of USD 121.27
East (RFE) LNG plant as a chosen million for execution of Phase-III
monetization option for Chayvo development and new exploration
Phase-2 Gas development, the program.
Consortium awarded the FEED
b. Phase-III drilling schedule could
contract for the RFE LNG to Technip
not commence in March-2020 on
FMC with effective date of 05.10.2020.
account of Covid-19 pandemic.
3. Imperial Energy, Russia Drilling operations commenced in
December 2020 and drilling of the first
Construction and installation of Associated well (out of total 8 wells planned) was
Petroleum Gas (APG) Plant, except completed in March’21. Additional rig
Booster Compressor, was completed on has been engaged to expedite the
26.12.2020 and gas intake to APG plant drilling campaign.
started on 07.02.2021. After plant start-up
and achieving the dry gas quality, transfer c. ONGC Videsh conveyed the approval
of gas to main trunk line (sale of dry gas) of FDP (Field Development Plan) on
of Transgaz commenced on 05.03.2021. 11.11.2020 for the Shwe Project
With successful commissioning, the APG Phase-III Development (comprising
plant will generate revenue by sale of value installation of LP Compressor)
added products (LPG, stable condensate with JV level firm budget of USD
and dry gas) besides enabling restarting 617.981 million. Phase-III EPCIC has
70 of closed high GOR wells. As part of field commenced in February 2021. The
development strategy of Snezhnoye field in commissioning of LP compressor is
phased manner, drilling of 2 development scheduled in July, 2024.
wells (followed by multi-stage hydrofrac)
d. ONGC Videsh conveyed approval
and 1 appraisal well has been initiated in
of Mahar Appraisal & Exploration
the first phase.
program on 04.01.2021, budgeted
4. MECL, Colombia at USD 191.921 million for drilling
of 1 appraisal well (Mahar-2) & 1
a. In view of impending expiry in Nov’21 exploratory well (Mahar west) in Block
of the NARE Association Contract, A-3 Myanmar.
 ANNUAL REPORT
2020-21
6. Block 06.1, Vietnam Project site have been stopped.
Area 1 consortium has subsequently
a. In view of new discovery in the PLD declared Force Majeure as it was
clastic reservoir, one appraisal unable to perform its obligations as
well was planned but drilling a result of the severe deterioration
could not commence due to the of the security situation in Cabo
directive received from Vietnamese Delgado, a matter which is entirely
government authorities. Notice of out of consortium’s control.
Force Majeure has been served in
August, 2020 by operator Rosneft B.V 8. GPOC, South Sudan
on behalf of the Consortium.
Despite difficulties faced during the
b. Proposal for sale of 100% shares pandemic and the logistical challenges
in Rosneft B.V. (Operator) to ZN due to travel restrictions, GPOC was able
Development Ltd. was received to bring 35 additional wells into production
in September, 2020. Change in during the financial year. In FY’21, GPOC
control to ZN Development is under achieved production rate of 57,142 BOPD
consideration of the Government of compared to 45,023 in FY’20.
Vietnam.
9. SPOC, South Sudan

Board’s Report
c. Current PSC is expiring in May 2023
and efforts for PSC extension for The Addendum to Original EPSA and
development of clastic prospects are Transition Agreement of Block 5A was
ongoing. signed and executed by the concerned
parties on 08.06.2020. EPSA has been
7. Rovuma Area-1, Mozambique extended from 06.02.2024 to 05.04.2037.
The exploration period has been adjusted
a. Project Financing with Debt Cap of by 54 months commencing from
USD 16 billion has been finalized 08.06.2020. Resumption activities are
with ECAs/Commercial Banks to ongoing and production is expected to
fund the initial G-A development. Dry resume in Q1, 2022
Close (execution of key financing
documents), achieved on 15.07.2020, 10. BC-10, Brazil
wherein commitment of USD 14.9
billion received from lenders. Drilling of well OS-2 as part of the Infill
Financial Close (Wet Close) was drilling campaign-2 was completed on
14.02.2020 and first oil production has
achieved on 24.03.2021 and the debt
commenced on 05.08.2020. OS-2 well
71
drawdown from the project financing
has commenced from 26.03.2021. is producing @ 10,250 BOPD against
the envisaged target of 4,560 BOPD for
b. Following the insurgency incidents March’21.
around project site since 24.03.2021,
Total Energies, Operator of b) Hindustan Petroleum Corporation Limited
Mozambique Area-1, evacuated (HPCL)
all the project personnel from the
Your Company holds 54.90% stake in HPCL
site by 02.04.2021 in accordance
(53.50% as on Mar 31, 2021), a Schedule ‘A’,
with the Security Protocol. Since
Maharatna, and listed entity. HPCL owns and
then, the construction activities on
operates 2 major refineries – one at Mumbai
 THE UNSTOPPABLE
ENERGY SOLDIERS
(7.5 million metric tonnes per annum - MMTPA) HPCL to achieve more than 100% capacity
and the other one at Visakhapatnam (8.3 utilization in refineries in spite of overall demand
MMTPA). It also owns and operates the largest contraction.
Lube Refinery in the country with a capacity
of 428 TMT (thousand metric tonne). HPCL During the year, HPCL achieved sales volume of
has a vast marketing network consisting of 14 36.59 MMT compared to previous year’s sales of
Zonal offices in major cities and 133 Regional 39.64 MMT. HPCL registered market share gain
Offices facilitated by a Supply & Distribution for transport fuels and recorded least de-growth
infrastructure comprising of Terminals, of 6.6% in domestic sales among the industry,
Installations, Tap Off Points, LPG Bottling Plants, industry de-growth for 2020-21 being 8.4%
Aviation Service Facilities, Lube Blending plants, compared to the previous year. HPCL continued
Lube depots and various customer touch points to be India’s largest lube marketer and second
across the country. HPCL has its Research & largest LPG marketer during the year.
Development Centre named ‘HP Green R&D
To further enhance its presence across the
Centre’ in Bengaluru.
value chain of natural gas business, HPCL
FY 2020-21 has been very eventful in view of acquired the balance 50% stake held by SP
crude oil price fluctuations, demand contraction Ports Pvt. Ltd. in the Joint Venture Company
in petroleum products and challenges on HPCL Shapoorji Energy Pvt. Ltd. (HSEPL) and
business continuity, supply chain management accordingly, effective 30th March 2021, HSEPL
and concerns related to health and safety of has become a wholly owned subsidiary of
workforce due to pandemic. HPCL. The company was incorporated to set
up and operate a Liquefied Natural Gas (LNG)
The combined GRM for HPCL Refineries for regasification terminal at Chhara, Gujarat. The
FY20-21 works out to USD 3.86 /bbl compared construction work for Chhara LNG terminal is in
to USD 1.02 /bbl in the corresponding previous full swing.
year.
HPCL R&D centre at Bengaluru received 44
During FY 2020-21, HPCL recorded its highest patents during the year for the new products,
ever standalone Profit After Tax (PAT) of `106,639 technologies developed by it. HPCL has worked
million as compared to `26,373 million for the out a detailed Digital Transformation strategy
previous year. Revenue from operations for the and is actively working on harnessing the
FY 2020-21 was `2,703,263 million as compared potential of new age technologies in its various
to `2,874,169 crore during the previous year. business operations.
Enhanced profitability was a result of robust
operational performance, improvement in During the year 2020-21, HPCL commissioned
72 refinery margins helped by inventory gains and 2,158 new retail outlets, which is the highest in
favourable exchange rate variations. For the year a year taking the number of total retail outlets
2020-21, HPCL has proposed a final dividend of to 18,634. HPCL also commissioned 112 new
`22.75 per share. LPG distributorships taking number of total
LPG distributors to 6,192 as of 31.03.2021.
During the year, HPCL refineries achieved Towards ensuring availability of alternate fuels
combined refining throughput of 16.42 Million and offering more choices to customers, CNG
Metric Tonnes (MMT) with capacity utilization dispensing facilities were provided at 203 retail
of 104%. Effective crude sourcing plans, outlets, taking total number of outlets dispensing
optimizing day-to-day crude run rate, efficient CNG to 674 as of March 2021. EV Charging
logistics management and regulating product facilities were provided at 84 retail outlets. To
procurements from other sources enabled meet the requirement of select customers for
 ANNUAL REPORT
2020-21
getting diesel delivered at their premises, total Direct Subsidiary of MRPL
387 Mobile Dispensers were commissioned as
of March 2021. ONGC Mangalore Petrochemicals Limited
(OMPL)
HPCL’s Visakh Refinery Modernization Project
and Mumbai Refinery expansion Project are Your Company has divested 49% equity holding
in the advance stages and are progressing in OMPL to its subsidiary MRPL on 01.01.2021,
towards completion during the financial year to get synergic benefit and compound value
2021-22. Residue Upgradation Facility at addition upon merger with MRPL. Consequently,
Visakh is also likely to achieve mechanical OMPL became a wholly owned subsidiary of
completion in the calendar year 2022. HPCL’s MRPL and its merger with MRPL is in process.
major ongoing cross-country pipeline projects OMPL was set-up as Aromatic Complex with
- Vijayawada to Dharmapuri product Pipeline, an annual capacity 914 KTPA of Para-xylene
Hassan-Cherlapally LPG Pipeline and Barmer - and 283 KTPA of Benzene in Mangalore
Palanpur product Pipeline are also progressing Special Economic Zone (MSEZ) as a value-
well. chain integration project aligning with MRPL’s
operations.
c) Mangalore Refinery and Petrochemicals
Limited (MRPL) OMPL earned revenue from operations of

Board’s Report
`33,888 million in FY’21 (`49,542 million in
Your Company holds 71.63 % equity stake in
FY’20) and incurred loss after tax of `4,557
MRPL, a Schedule ‘A’ Mini Ratna and listed
million (loss after tax of `14,038 million in FY’20).
entity, which is a single location 15 MMTPA
Refinery. Further, HPCL, another subsidiary of d) Petronet MHB Ltd (PMHBL)
your Company, also holds 16.95% in MRPL.
Your Company and its subsidiary HPCL are
MRPL’s refinery is established with a versatile holding equity of 49.996% each in PMHBL. With
design with complex secondary processing your Company’s holding of 54.90% in HPCL,
units and a high flexibility to process Crudes the extent of effective holding in PMHBL by
of various API, delivering a variety of quality your Company is 77.44% and makes PMHBL a
products. Refining Net throughput of MRPL subsidiary of ONGC.
during FY’21 was lower at 11.50 MMT, against
14.14 MMT during FY’20, due to demand PMHBL owns and operates a multiproduct
destruction of petroleum products caused by petroleum pipeline to transport MRPL’s
travel restrictions and lockdowns due to COVID petroleum products to various parts of Karnataka
pandemic. State.
73
In stressed global market conditions, MRPL FY’21 was a challenging year for PMHBL due
registered a standalone turnover of `510,192 to COVID 19 pandemic. PMHBL achieved a
million (`607,515 million in FY’20) and recorded thruput of 2.139 MMT in FY’21 against 2.925
Loss of `2,405 million (against loss of `27,403 MMT in FY’20 and reported total revenue of
million in FY’20). GRM for MRPL was USD 3.71/ `1,113 million in FY’21 (`1,625 million in FY’20)
bbl (against negative USD 0.23/bbl during and recorded a net profit (PAT) of `518 million in
FY’20). FY’21(`883 million in FY’20).

To capture retail margins, MRPL is focused on PMHBL paid an interim dividend @ `6/- per
setting up and expediting own retail outlets. 11 equity share totalling to `3,292 million during
new Retail Outlets were commissioned during the FY’21 out of which your Company’s share is
FY’21. With this, MRPL has 18 operating outlets. `1,646 million.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Associates and Joint Ventures (IEDCL - an IL&FS subsidiary) (12.03%); IL&FS
Financial Service Limited (IFIN) (13.97%) and
e) ONGC Petro additions Limited (OPaL) India Infrastructure Fund –II (23.5%).
OPaL is a mega petrochemical project OTPC has a 726.6 MW gas based Combined
established in Dahej SEZ and incorporated in Cycle Power Plant at Palatana, Tripura with two
2006 for utilizing in-house production of C2-C3 generating units with equal capacity. The basic
and Naphtha from Hazira and Uran units of your objective of the project is to monetize idle gas
Company. Your Company, GAIL and GSPC held assets of your Company in landlocked Tripura
49.36%, 49.21% and 1.43% of equity shares State and to boost exploratory efforts in the
respectively in OPaL. region. Power evacuation for both the units is
done through 662.8 KM long 400 KV double
OPaL was commissioned in 2016-17 and has
circuit transmission network by North-East
established itself in domestic/export market with
Transmission Company Limited (NETC), a joint
sale of prime grade products. OPaL obtained
venture of Power Grid Corporation, OTPC and
Food Grade approvals for all polymer grades as
Governments of the North-Eastern states.
per US-FDA, EU and Indian standard and has
also obtained RoHS-III approval for all these Average Plant load factor for FY’21 was about
polymer grades as per EU directive. 80% and the company has achieved highest
generation of 5090 MU in FY’21 since inception.
During the FY’21, stable and uninterrupted plant
operations were ensured as per Covid protocols Revenue from operations during FY’21 was
and statutory guidelines. OPaL Introduced PP `16,456 million (`12,483 million in FY’20) and
Fibre & Filament grades “OPaLene RH38” for profit after tax (PAT) was `2,206 million (`706
mask/PPE kits application during the beginning million during FY’20). PAT in FY’21 is the highest
of the pandemic period to meet growing since inception of the company.
domestic demand.
OTPC paid `0.60 per share as interim dividend
During the FY’21, OPaL commissioned and Board has recommended `0.70 per share
Hydrogen Generation Unit which will provide as final dividend for FY’21.
continuity & stability in Polymer units operations
in case of interruptions in Dual Feed Cracker g) ONGC TERI Biotech Limited (OTBL)
Unit and add to reliability of complex operations.
OPaL also commissioned LPG Pipeline to OTBL is a JV formed and incorporated in
provide assurance and flexibility in feed for the 2007 by your Company (49.98%) along
complex. with The Energy Research Institute (TERI)
(48.02%) and the balance 2% shares are held
74 Revenue from operations of OPaL during FY’21 by individuals. OTBL has developed various
was `114,860 million (`101,829 million in FY’20) Biotechnical Solutions for oil and gas Industry
and posted loss after tax of `7,978 million in through collaborative researches involving the
FY’21(Loss of `20,897 million in FY’20). Company and TERI. These technologies include
Bioremediation, Paraffin Degrading Bacteria
f) ONGC Tripura Power Company Limited (PDB), Wax Deposition Prevention (WDP) and
(OTPC) Microbial Enhanced Oil Recovery (MEOR) which
are being provided to oil and gas industries both
OTPC was incorporated in 2004 as a joint
in India and abroad.
venture of your Company. Your Company holds
(50%) along with the Government of Tripura Revenue from operations of OTBL during FY’21
(0.5%); IL&FS Energy Development Co. Ltd. was `270 million (`224 million in FY’20) and
 ANNUAL REPORT
2020-21
profit after tax (PAT) was `88 million (`75 million k) Petronet LNG Limited (PLL)
during FY’20).
Petronet LNG Limited (PLL), a JV of your
h) Dahej SEZ Limited (DSL) Company, which was incorporated in 1998
with 12.50% equity holding along with same
DSL, a 50:50 JV of your Company along with shareholding held by other Oil PSU co-
Gujarat Industrial Development Corporation promoters viz., IOCL, GAIL and BPCL, is a
(GIDC), was formed and incorporated in 2004 listed Company. PLL, has set up the country’s
for establishing a multi-product SEZ at Dahej. first LNG receiving and regasification terminal at
Your Company has set up C2-C3 Extraction Dahej, Gujarat, and another terminal at Kochi,
Plant as a value-chain integration project in this Kerala. While the plant at Dahej terminal has
SEZ, which serves as feeder unit to OPaL, JV of 17.5 MMTPA capacity, the Kochi terminal has
your Company. The company is expanding with capacity of 5 MMTPA.
its Phase –II project and initiated acquisition of
additional land. During FY’21, PLL recorded revenue from
operations of `260,229 million and Profit after
Revenue from Operations of DSL during FY’21 tax (PAT) of `29,494 million. PLL paid interim
was `624 million (`650 million in FY’20) and PAT dividend `8 per share and proposed a final
was `359 million (`464 million during FY’20). dividend of `3.50 per share during the FY’21.

Board’s Report
i) Mangalore SEZ Limited (MSEZL) l) Indradhanush Gas Grid Limited (IGGL)
MSEZ is a Special Economic Zone promoted Your Company has subscribed 20% equity
by the Company with an equity stake of 26% capital in IGGL, a JV company along with IOCL,
along with KIADB (23%), IL&FS (50%), OMPL GAIL, OIL and NRL. IGGL was incorporated
(0.96%) and KCCI (0.04%). MSEZ, was set up in 2018 for the purpose of laying 1,656 KM
and incorporated in 2006 for development of pipeline covering north-east states with a Capex
infrastructure to facilitate and locate industrial of `92,650 million. Ministry of Petroleum and
establishments including OMPL. MSEZ is Natural Gas (MoPNG) has approved Viability
operational since April 2015. Gas Funding (VGF) of `55,590 million which
is 60% of the project cost. IGGL has initiated
Total Revenue from operations of MSEZL during
the project related activities like procurement
FY’21 was `1,651 million (`1,741 million in
and laying of pipelines. IGGL has spent `3,050
FY’20) and loss after tax of `321 million (Net loss
million till 31.03.2021.
of `316 million during FY’20).
m) Companies Which Have Become/ Ceased To
j) Pawan Hans Limited (PHL)
Be Company’s Subsidiaries, Joint Ventures 75
PHL, is an Associate of the Company, with And Associates Companies during FY’21
49% holdings, and the Government of India
a) Companies which have become
(GoI) holding the remaining 51% of the share
subsidiaries: NIL
capital. PHL was formed primarily for catering to
the logistic requirements of offshore and other b) Companies which have ceased to be
remote area oil fields. PHL is a Mini Ratna-I subsidiaries: Your Company has divested
Category PSU, having fleet of 43 helicopters. 49% equity holding in OMPL to its subsidiary
The GoI is in the process of identifying a strategic MRPL on 01.01.2021. Consequently,
investor for its entire holding and hence, your OMPL became direct and wholly owned
Company has also decided to exit PHL along subsidiary of MRPL and merger of MRPL
with the Government of India. and OMPL is in process.
 THE UNSTOPPABLE
ENERGY SOLDIERS
c) Companies which have become a joint • Your Company has carried out 6 National
venture or associate: NIL Webinars with domestic manufacturers to
promote Atmanirbhar Bharat campaign,
d) Companies which have ceased to be a and conducted video conferencing
joint venture or associate: NIL and inspection of facilities of domestic
manufacturers to promote localization of
28. Make in India and Start-up Initiative
product & services.
ONGC has been the lead PSU of Upstream
• In North East, ONGC has developed
Sector for Make in India and Atmanirbhar
vendors for industrial grade Air Conditioners
Bharat Programs. ONGC’s main projects/
and special Batteries for use in operations.
initiatives under the said program are as under:
Tripura asset has developed local vendors
• Purchase Preference linked Local for manufacturing of Orifice of different
Content Policy: Induction of revised PP- sizes, Elbow Seal valve Cover etc. Tripura
LC in 2020. Asset has also helped Indian vendor of bits
to develop PDC bits for use in drilling of wells
• ONGC has introduced the policy to in the asset. These drilling bits are locally
adopt National Competitive Bidding for manufactured in India. More development
procurements up to value of `200 Crore in work is being done in this area.
order to promote Atmanirbhar Bharat.
• In western sector, local vendors for
• The Government policies on PP-LC, manufacturing of Moulded Guides on
MSME, GeM, DMI&SP and DMEP have Sucker Rod, Rubber centralization for CBT
been adopted by ONGC. Tool, Thermal Fan-fold paper, Hydraulic
hoses for pressure control equipment,
• ONGC has stepped up its drive for
Grease Lubriplate & Wireless radio remote
localization of procurement under
control of Upet Rig have been developed.
Atmanirbhar Bharat campaign of the
These product localizations at work center
Government.
level carries an annual offtake value of
• ONGC has recently introduced the new `20 million and is aimed to support local
Development Order Policy, to promote vendors in the locations.
development of E&P sector equipment
• ONGC has placed 14 NOAs of development
and services in India by domestic
orders for different products under new
industry and to make country self-reliant
development Policy. The annual offtake of
in E&P equipment and services. Five
these products is around `8,000 million.
76 Year Procurement plan has been posted
These products are in various stages of
on ONGC website to encourage the
development, some of the developed
domestic manufacturers to enhance their
products are under field trial and vendors
product portfolio /installed capacities. Bid
of some successfully developed products
Evaluation Criteria for Supply / Services
have been declared as developed
has been suitably modified to support
indigenous sources.
Localization.
29. ONGC Start-up Initiative
• Expression of Interest for indigenous
development of products was called in Dec Your Company announced a `1,000 million
2020 – Jan 2021. More than 60 domestic Start-up fund on its 60th foundation day i.e. on
companies have shown their interests. 14.08.2016 to foster, nurture and incubate new
 ANNUAL REPORT
2020-21
ideas related to energy sector. The initiative, Tauktae incident
christened as ‘ONGC Start-up Fund’, is in line
with the ‘Start-up India’ initiative launched by the Your Company received weather forecast
Hon’ble Prime Minister of India on 16.01.2016. and warnings related to cyclone Tauktae in
Arabian Sea on 16th and 17th May 2021. All
The initiative is intended to promote the Installations, Rigs were advised to initiate
entrepreneurship among the younger Indians Installations specific Emergency Response
by creating an ecosystem that is conducive Plans to deal with the cyclone. All the Rigs went
for growth of Start-ups in the energy sector, into storm survival mode. All process platforms
which has a huge potential for technology- also moved into safe mode. Chopper services
enabled ideas. The energy sector is contributing were suspended. All barges in the field were
enormously to the growth of economy. Currently, instructed to move to safe location.
the sector faces various critical challenges
and new ideas are required to mitigate those In the early hours of 17.05.2021, Cyclone
challenges. Tauktae hit Arabian Sea off the coast of Mumbai.
The Cyclone changed its path to the operational
A dedicated website https://startup.ongc.co.in was areas of ONGC and also picked up speeds
launched for registration of proposals. The website much higher than the predictions.
also contains an application form to capture
proposals for Funding support for Start-Ups. The fury of the cyclone was unprecedented

Board’s Report
and winds gusted up to nearly 110 Knots in the
Your Company has completed ten pitching areas of operations. Three construction barges
rounds and has committed to support along with their AHTs belonging to consortium of
fifteen start-ups from energy sector with total LSTK contractors, one ONGC owned floater Rig
commitment of `565 million. Sixteen Start-Ups and one charter hired Jack-up rig were severely
are under due diligence and evaluation for impacted. One of the Accommodation barge,
identifying suitability for investment. Applications Papaa-305, hit an unmanned well platform after
received during recent invitations on the start-up failure of its anchor and later capsized. One
website are under evaluation / review. of the Anchor Handling Tug, Varaprada also
capsized in the cyclone.
30. Health, Safety and Environment (HSE)
On getting the information, your Company
Your Company accords topmost priority to immediately launched rescue operations along
the Health, Safety and Environmental (HSE) with Indian Navy and Indian Coast Guard.
management by carrying out its operations Immediate rescue operations were hampered by
ensuring zero harm to the people or the the inclement weather, however by 18.05.2021,
environment. HSE in ONGC’s operations is the situation was brought under control. The 77
guided by HSE Policy and HSE management impact of the cyclone resulted in unfortunate
system (HSEMS). In addition there is also vessel incidences in which 86 people could not
dedicated Environment Policy and e-waste survive and became brave nature victims (BNV).
policy.
Your Company, immediately launched the
ONGC in order to maintain high standards, rehabilitation efforts and special teams were
goes beyond the Regulatory requirements and formed to contact the family of impacted persons.
practices proactive HSEMS, which is based A special team of ONGC Officials was deputed
on International Standards, ISO 9001, OHSAS at the Hospital for smooth coordination with the
18001/ ISO 45001 and ISO 14001. affected families. A nodal officer was assigned
for families of each BNV (Brave Nature’s Victim),
 THE UNSTOPPABLE
ENERGY SOLDIERS
who was responsible for facilitating logistics, mines. DGMS carried out inspections
boarding & lodging, counselling, interaction at 86 Installations during the year
with authorities and any other local support. As 2020-21.
an immediate relief, apart from insurance and
other facilities available to the workers from their Concerted efforts are being
employers, Your Company disbursed grant of made to liquidate Safety Audit
ex-gratia payment amounting to `0.20 million to Recommendations within the
the next of kin of each 86 BNVs and `0.10 million stipulated timelines. Suitable
to each of the 188 survivors. compensatory safety measures are
put in place till the audit observations
Your Company has initiated a major exercise are complied with.
of reviewing all its emergency response,
contingency and disaster management b. Your Company has been laying great
plans with special emphasis on handling emphasis on Near Miss reporting and
such unprecedented cyclonic situations. timely action on the same as this shall
Your Company has also launched a massive reduce the accidents in operations.
exercise of companywide safety management
c. Your Company has also launched an award
assessment and implementation of reviewed
scheme to encourage the employees to be
safety standards benchmarked to international
more safety conscious in operations and
practices of E&P industries.
improve the safety culture. Every quarter,
HSE Initiatives Safety Champion and Safe Installation
awards are being declared by Assets/
a. To check the conformity of activities Plants/ Basins based on a criteria which
and processes with the existing HSE ensures enhancing safe operations. The
management systems as well as to awards are in recognition of commendable
prevalent rules, regulations, guidelines and performance in safety and encourage
standards, regular internal audits are being employees to enhance the safety culture.
conducted by multi-disciplinary teams of The awardees were well recognized on
the Company. public forums.

i. Internal Safety Audits (ISAs) are being d. Your Company has implemented SAP
conducted by Multi - disciplinary based E-PTW (Electronic Permit to Work).
Teams at regular intervals depending The system removes requirement of
upon their criticality. Inspite of physical approvals, provides a single point
COVID-19 challenges, 291 ISAs were of monitoring from anywhere, and maintains
78 conducted last year. system based checks & balances. This
online tool is serving as an effective
ii. During the year 2020-21, External measure to ensure that procedures are
Safety Audits were conducted by Oil followed and implemented.
Industry Safety Directorate (OISD)
at 64 Installations. Directorate e. Benchmarking of all installations has
General of Mines Safety (DGMS) is a been done on various HSE parameters in
Regulatory Agency under the Ministry SAP. HSE Index is an important measure
of Labour and Employment, GoI in of monitoring safety performance of
matters pertaining to occupational installations. Compliance of all work
safety, health and welfare of persons centres is monitored on monthly basis.
employed in mines including oil- On basis of analysis of performance of
 ANNUAL REPORT
2020-21
work centres and specific services, Half j. On the basis of analysis of incidents/
Yearly HSE Index report is being published accidents causes and recommendations,
which also includes observations and Safety Advisories have been issued
recommendations for improvement. from time to time with guidelines/
recommendations to be followed by all
f. Mock drills are being conducted at stakeholders.
installations/rigs to check the efficacy of
preparedness against defined emergency k. The HSE Committee of the Board has
scenarios as per the risks envisaged in the been reviewing the HSE performance on
respective emergency response plans. quarterly basis.
During 2020-21, mock drills were conducted
against a target of 12670, total 14803 l. Environmental Clearances: During the
ERP (Emergency Response Plan) and 2020-21, ONGC received 06 environment
8 DMP (Disaster Management Plan). All the clearances (ECs), 03 EC Amendments
data is analysed for further improvement. & 1 Coastal Regulatory Zone (CRZ)
clearance from Ministry of Environment,
g. Mines Vocational Training (MVT), a Forest and Climate Change (MoEFCC) for
mandatory training as per Mines Act, carrying out exploration, development and
is being imparted to both employees production activities in 48 fields in onshore
and contract personnel through inhouse and offshore areas. Approvals were also

Board’s Report
training centres. It is an essential safety accorded for drilling of 4 exploratory and
training being provided to staff level field 448 development wells, converting of
going personnel. Inspite of COVID-19 one exploratory well to development well,
pandemic limitations, MVT was provided setting up of Additional Cogeneration Unit
to 2,643 personnel (976 Company GT-IV and Enhanced Reactive Thermal
Employees and 1,598 Contract Personnel) Oxidizer (ERTO) at Uran Plant.
in 2020-21.
m. Since 2013, ONGC has been accredited
h. In order to ensure awareness amongst by Quality Council of India (QCI) – National
all the employees and contract workers, Accreditation Board for Education &
Ten Safety Rules Awareness Programs Training (NABET) as an EIA Consultant
are regularly being conducted at rigs/ Organization which is a prerequisite
installations. In 2020-21, the program for preparing EIA reports to accord of
could cover 18,556 personnel, which is Environmental Clearances (ECs) by
one of the highest achieved so far on MoEFCC. The accreditation is helpful in
annual basis. securing the ECs for Company’s projects.
79
i. Your Company has a very robust system n. Waste Management
of enquiry of an accident. All the accidents
even minor ones, are enquired into and i. Waste Water Management: ONGC
required actions are taken in order to monitors the waste water usage
avoid reoccurrence. Safety Alerts are and maintains the quality of
being issued on the basis of root cause effluent discharged conforming to
analysis of these incidents. Such alerts are statutory requirements specified
being issued on regular basis and widely for discharge of treated effluent at
circulated to all concerned and awareness surface/ subsurface. The Company
workshops are also held. In 2020-21, has 43 number of Effluent Treatment
nearly 30 such Safety Alerts were issued. Plants across onshore work centres
 THE UNSTOPPABLE
ENERGY SOLDIERS
to treat approx. 104,000 m3/day Clean Development Mechanism
of waste water produced during
E&P operations. For Offshore Your Company commenced its Clean
effluent treatment, Produced Water Development Mechanism (CDM) journey in
Conditioners have been installed 2006. So far, it has registered 15 CDM projects
at process platforms. Sewage with the United Nations Framework Convention
Treatment Plants for treatment of on Climate Change (UNFCCC) under the
sewage water generated are also Kyoto protocol, demonstrating its commitment
provided at offshore facilities. towards protection of our environment and
sustainable development. Three new projects
ii. Solid Waste Management: For (05 MW solar power project at Ankleshwar, 01
environmentally safe disposal of MW solar power project at IPSHEM-Goa, and
oily waste, OTBL has developed rooftop solar power projects at work centres
specialized patented technology of Gujarat, Assam and Dehradun) are under
for bioremediation of oily sludge/oil validation process, for registration as new CDM
contaminated soil. The technology projects. The Company has 2.2 million Certified
uses a consortium of Hydrocarbon Emission Reductions (CERs) in CDM account.
degrading bacteria which reduces Verification of 05 CDM projects were in progress
the Petroleum Hydrocarbons levels in in FY’21 for crediting of CERs.
waste/soil to less than 0.5 per cent.
During 2020-21, 74,569 Metric Tons Greenhouse Gas (GHG) Accounting and
of oily sludge/oil contaminated waste Mitigation
has been bio-remediated.
Your Company aims to reduce GHG emissions
31. Carbon Management and Sustainable by focusing on improved energy efficiency. GHG
Development Accounting is being carried out and disclosed
in Sustainability Report of the Company. Total
Your Company believes that being a safe, emissions during FY’21 including scope-1 and
responsible and ethical operator it should scope-2 emissions were 09.66 MMT CO2e,
take care of communities around its areas of recording a reduction of about 5.85 % from the
operations, to create long-term value for our previous year.
stakeholders. Your Company recognizes the
growing concern around environmental issues Global Methane Initiative
related to the operations of oil and gas sector
The Global Methane Initiative (GMI) is an
and accepts this challenge as an opportunity
action-oriented initiative from United States
to integrate the concepts of sustainable and
80 responsible business into our planning. As
Environment Protection Agency (USEPA) to
reduce global fugitive methane emissions to
a result, ONGC Group of companies is a fully
enhance economic growth, promote energy
integrated energy major with verticals from
security, improve the environment, and reduce
upstream, midstream and downstream domains
greenhouse gases emission. Under this
of the sector.
programme, during 2020-21, GMI survey were
Sustainable Development is a commitment conducted at three production installations of
to continually enhance the benchmarks Cambay Asset and eight production installations
of economic, environmental and social of Ahmedabad Asset. Through this programme,
performance. The major endeavours towards ONGC could so far prevent approximately
corporate sustainability are as under: 20.48 MMSCM of methane gas leakages in to
 ANNUAL REPORT
2020-21
the atmosphere with an environmental benefit of Gandhar and Koyali refinery of IOCL has been
approximately 3,06,250 tonnes CO2 Equivalent found suitable for the project. The project has
(TCO2e). the potential for sequestrating 5 to 6 million
TCO2 by the year 2040.
Solar and wind energy initiatives
Electric Vehicle pilot project
Your Company has installed about 31 MW
capacity Solar Power plants across work centres Towards promoting electric mobility in its value
depending on the availability of open spaces chain, your Company flagged off the first batch
and rooftops. of ten electric vehicles for its officers at Delhi, in
collaboration with EESL.
Since 2008, your company has been a
forerunner in adopting renewable energy with Video Conferencing - a step towards
its first 51MW wind power project (34 numbers mitigating scope-3 emissions
of 1.5 MW Wind turbine generators) in the Bhuj
district of state of Gujarat. Your Company has a Taking advantage of the digital revolution like
dedicated Renewable Energy Cell (REC) which broad band and web-cam, ONGC has adopted
acts as the knowledge center on all renewable video conferencing for interaction of top
energy projects. In 2015, its second wind power management with key executives across work
plant with 102 MW (49 numbers of 2.1 MW centres. Presentations and business meetings

Board’s Report
Wind Turbine Generators) capacity at Jaisalmer, are being held through video conferencing
Rajasthan was successfully completed which reduces the travel cost, saves executive
enhancing the capacity of wind energy man-hours and mitigates scope-3 emissions
to 153 MW. from air travel.

The total installed capacity of renewable energy Besides, during the period of COVID-19, your
as on 31.03.2021 is about 184 MW (Solar: 31.06 Company immediately shifted to online mode
MW and Wind: 153 MW). Another 20 MW solar of video-conferencing through various platforms
projects are under way for commissioning in and held several meetings viz. coordination
work centres. Your Company is committed to of all activities with different work centres and
undertake such projects in the coming times decisions/actions were taken including update
and has set an initial target of 2 GW capacity on the emerging COVID-19 scenario.
by 2030.
32. ONGC Group Sustainability Report
Carbon Capture, Storage and Utilisation
Your Company has been publishing GRI
(CCSU)
based, independently assured Group
CCSU is the only clean technology capable of Sustainability Report covering ONGC, ONGC 81
decarbonising major industrial sectors such Videsh, MRPL, OMPL, OPaL and OTPC. The
as steel, cement, pulp and paper, refining and focus of Sustainability Reporting is on Social,
petrochemicals. Your Company has signed an Environmental and Economic impacts with
MoU with Indian Oil Corporation Limited (IOCL) Governance aspects also. The Principle of
on 01.07.2019 for CO2 based Enhanced Oil Responsible Investment is rapidly becoming a
Recovery in Gandhar Field of ONGC by injecting mainstream concern based on the belief that
CO2 captured from IOCL’s Koyali refinery into addressing Environmental-Social-Governance
specially prepared well (s) in Gandhar oil field. (ESG) issues will protect and enhance portfolio
Detailed technical feasibility study was carried returns of all stakeholders. ESG Reporting
out for CO2 - EOR in GS 9 & 11 sands of has evolved as industry best practices and
become necessary as ESG considerations
 THE UNSTOPPABLE
ENERGY SOLDIERS
are incorporated in to the Credit Ratings of the Audit Committee/ Board reviews the Internal
company. Your Company would be publishing Financial Controls to ensure its effectiveness for
GRI based ESG report along with traditional achieving the intended purpose. Independent
Sustainability Report from this year. The report Auditors Report on the Internal Financial Controls
will meet Global Reporting Initiative (GRI) of the Company in terms of Clause (i) of Sub-
Standards and also independently assured Section 3 of Section 143 of the Companies Act,
through third party assurer as per AA 1000 2013 by the Statutory Auditors is placed along
AS Standard. with the Financial Statements.

33. Technology induction/ up-gradation and 36. Human Resource Development

Energy Conservation
Your Company operates in various challenging
The information required under section 134(3) terrains from deserts to jungles to offshore. Your
(m) of the Companies Act, 2013, read with the Company truly values its Human Resource who
Companies (Accounts) Rules, 2014, is annexed commit themselves towards the pursuit of E&P of
as Annexure-‘C’. hydrocarbons to ensure India’s Energy security.
To keep their morale high, your Company extends
34. Business Responsibility Report best of welfare benefits to employees and their
dependents by way of comprehensive medical
Clause (f) of sub-regulation (2) of regulation
care, education, housing, social security and
34 of SEBI (Listing Obligations and Disclosure
other facilities.
Requirements) Regulations, 2015, stipulates
that the Annual Report shall contain a Business Your Company caters to meet the demands
Responsibility Report describing the initiatives of maintaining a steady flow of talent, in a
taken by the listed entity from an environmental, business which is characterized by high risks
social and governance perspective in the and uncertainties, enormous costs, rapid
format specified. Accordingly, the Business technological advances, physically challenging
Responsibility Report for FY’21 has been work environment, fluctuating product prices
appended to this Annual Report. and growing competition. Your Company’s
talent management strategy is focused on
35. Internal Financial Control System
building an optimal and competent workforce to
Your Company has put in place adequate meet business needs, and is centered around
Internal Financial Controls by laying down workforce planning and talent acquisition,
policies and procedures to ensure the efficient performance management, learning &
conduct of its business, safeguarding of its development, career growth, succession
assets, prevention and detection of frauds planning and leadership development.
82 and errors, accuracy and completeness of the
There were 28,479 employees on rolls as
accounting records, and timely preparation of
on 31.03.2021. These ONGCians dedicated
reliable financial information commensurate with
themselves to securing your Company’s
the operations of the Company. Effectiveness of
excellent performance during the year, even
Internal Financial Controls is ensured through
amidst the challenges of a global pandemic
management reviews, self-assessment and
situation. ONGCians responded to the
independent testing by the Internal Audit Team
imperatives of a New Normal with agility, resolve
indicating that your Company has adequate
and spirit of collective collaboration to ensure
Internal Financial Controls over Financial
continuous operations while maintaining focus
Reporting in compliance with the provisions
on health & safety through institutionalized Covid
of the Companies Act, 2013 and such Internal
appropriate Standard Operating Procedures
Financial Controls are operating effectively. The
 ANNUAL REPORT
2020-21
and modified norms such as roster attendance, domains/ areas, spanning 135,994 executive
staggered timing, work from home, etc. and 6,735 non-executive training days.

Your Company ensured constant support for its Your Company also pursued structured initiatives
employees during the health crisis by extending for maintaining a vibrant academia – industry
complete medical support to its employees and interface through Chairs, participation in various
their families. 24x7 Helpline Numbers for all academia-industry level forums, workshops,
work centres were operationalized to help and seminars, and conferences, etc.
assist employees and their family members.
Continuous communication & connect of Top Major Emergency Management trainings were
leadership with operations teams at locations conducted through in-house faculty for the first
across the country was ensured to reinforce time for Offshore Installation Managers.
employee safety, boost workforce morale
Taking the initiative further and carrying the
and provide all necessary support for smooth
leadership role of Upstream National Oil
operations.
Company, ONGC Academy collaborated with
A number of welfare measures were extended to National Institute of Disaster Management to
employees to provide relief during the pandemic broad base the training outreach by including
situation. Further, in order to rehabilitate other companies under administrative control
bereaved ONGC families, a special Employment of MoPNG viz: BPCL, EIL, GAIL, HPCL, IOCL,

Board’s Report
Assistance scheme was introduced to provide Oil India Ltd and conducted a One Day Basic
employment assistance to dependents of Disaster Management training programme for
regular employees who succumbed to Covid-19. ONGC Employees and employees of these
companies.
During FY 2020-21, a number of digital initiatives
were adopted towards improved employee In FY’21, your Company continued with the two
processes, claims and paperless transactions. focused leadership development programmes
Further, talent acquisition processes were for junior and middle level executives - FuEL
modified to meet the new challenges. Selection (Future Energy Leaders Programme) for E1 to E3
Interviews were conducted online during level executives and OYL (ONGC Young Leaders
campus recruitment and engagement of Programme) for E4 and E5 level executives.
contract medics across work centres. Corporate Five programmes each were conducted. These
Promotion exercise was conducted on digital/ customized programmes were in association
virtual platforms, minimizing travel and physical with Centres of Excellences to groom young
contacts. Assessment Development Centres for executives as future leaders who will take ONGC
all eligible executives were also completed in to the next level. Five batches of Management
online mode, which not only helped to protect Development Programs (MDP) were organized 83
the health of employees but also resulted in cost for officers who were recently promoted to
savings. corporate level.

During the year, in view of the Covid-19 Employee Engagement

pandemic, with a quick and adaptive approach,
Your Company utilized technology to organize a
learning methodologies were revamped to adopt
number of online engagement activities during
online mode, and the Annual Training Calendar
the year, such as Make a Mask contest for
was realigned to facilitate conduct of online
employees & their family members, Story writing
trainings. 16,518 executives and 3,287 non-
contest called Humans of ONGC, case-study
executives were imparted training in relevant
contest, memoir-writing contest for serving &
 THE UNSTOPPABLE
ENERGY SOLDIERS
retired employees, etc., apart from a number of Out of this, `60 Million is distributed amongst
webinars and virtual meets on relevant topics, all the work-centres of the Company for taking
including improving productivity, health & up welfare activities for communities in and
emotional well-being. around areas of the Company’s operations. In
addition, `140 Million is managed centrally, and
Your Company also conducted the Annual is earmarked for special projects/ proposals/
Business Games to hone the business schemes for the welfare of areas/ persons
acumen of its executives through business belonging to SC/ST communities. The amount
quizzes, business simulations and case-study under component plan is utilised for taking up
presentations. various measures for the welfare and upliftment
of the needy people of the said communities.
Similarly, Online ‘Fun Team Games’ (FTG) were
organized for E0 and below level employees to Scholarship to meritorious students
inculcate MDT (Multi-disciplinary Team) concept
and spirit of camaraderie and belongingness to Your Company provides 1,000 scholarships for
the organization, which was very well received meritorious SC and ST students for pursuing
by the participants. higher professional courses at different Institutes
and Universities across the country in Graduate
Your Company also organized a unique Engineering, MBBS, PG courses of MBA and
engagement event for Persons with Disabilities Geo-Sciences. The scholarship amount is
(PwD) called Mosaic 2020 – Online Games extended up to `48,000/- per annum per student
consisting of quiz, debate, extempore, poetry subject to conditions of the scheme.
recitation, art & crafts, poster contest and a
unique talk show named ‘Candid for Covid’, Women Empowerment
where PwD employees shared their thoughts
& experiences on the pandemic. The event Women employees constituted 7.5 per
culminated on International Day for PwD on cent of your Company’s workforce as on
03.12.2020. 31.03.2021. Your Company continued to
make concerted efforts towards providing an
Implementation of Govt. Directives for Priority enabling workplace environment for women
Section employees to grow and strengthen the talent
pipeline as future leaders of the organisation.
Your Company complies with the Government In addition to a number of women-friendly
directives for Priority Section of the society. policies and facilities which are in place, various
The percentage of Scheduled Castes (SC) programmes for women empowerment and
and Scheduled Tribe (ST) employees were development, including programmes on gender
84 15 percent and 11 percent respectively as on sensitization, were organized. Your Company
31.03.2021. also actively supported and nominated women
employees for programmes organized by
Your Company is fully committed for the welfare
reputed professional agencies. In its continued
of SC and ST communities. The following welfare
endeavour to encourage and facilitate more
activities are carried out by your Company for
women employees to take-up field assignments
their betterment in and around its operational
for developing core operational competencies, a
areas:-
new dungaree (industrial overall) was designed
Annual Component Plan specifically for women employees, in association
with National Institute of Design, Ahmedabad,
Under Annual Component Plan for SC/ST, to enable them to perform field jobs with
every year allocation of `200 Million is made. greater ease.
 ANNUAL REPORT
2020-21
Disclosure under the Sexual Harassment

Your Company has complied with the provisions under the Sexual Harassment of women at workplace
(Prevention, Prohibition and Redressal) Act, 2013 including constitution of Internal Complaints Committees
(ICC) for dealing with complaints of sexual harassment of women at workplace. Skill enhancement programs
were conducted for members of ICC to equip them with requisite skills for enquiring into complaints. The
Company also issued detailed guidelines for dealing with complaints of sexual harassment. A dedicated
page on Prevention of Sexual Harassment, with valuable resources on creating awareness, has been
added on the internal portal of the Company.

The following is a summary of sexual harassment complaint received and disposed-off during the financial
year 2020-21:

Financial Year No. of complaints No. of complaints No. of pending

received disposed off complaints
2020-21 01 01 Nil

Work-Life Balance under the RTI Act 2005. Your Company has a
designated senior level officer as a ‘Nodal Officer’

Board’s Report
Your Company provides an enabling environment to oversee its implementation. The applications
for work-life balance of its employees. Townships received are processed by 23 designated
at many work centres have developed facilities ‘Central Public Information Officers’ (CPIOs)
like gymnasiums, clubs, sports facilities and in various work centres across the Company,
music rooms. Facilities for gym, sports, yoga, in compliance of Sections 5(1) and 5(2) of the
library, etc. are also provided in Offshore Living Act. The particulars of all the quasi-judicial
Quarters. Apart from social communities such as authorities under the ambit of RTI Act, 2005 have
Officers Clubs, Employee Welfare Committees, been uploaded on the Company website (www.
Resident Welfare Associations, ONGC Officers’ ongcindia.com) for information of the general
Mahila Samiti etc., your Company also has public. In compliance of Government directives,
a unique adventure wing named ‘ONGC your Company is efficiently processing the
Himalayan Association’ which organizes online applications under the Act.
adventure programmes like mountaineering,
trekking, water rafting, etc. Your Company received 1,893 applications
(including 24 transferred by other Public
37. Industrial Relations Authorities) during FY’21, and 185 RTI
applications were carried forward from FY’20. 85
Your Company maintained harmonious Industrial
Against 1,893 applications, information as
Relations throughout the year. Man-days loss
sought were provided, 12 applications were
due to internal industrial action was reported as
rejected and 24 applications were transferred to
‘NIL’ for FY’21.
other public authorities, in accordance with the
38. Compliance under the Right to Information provisions of the RTI Act 2005. There were 293
Act (RTI), 2005 first appeals, which were disposed-off during
the period. Additionally, 58 Second Appeals
Your Company has a well-defined mechanism in which were listed for hearing before the Central
place to deal with the RTI applications received Information Commission during FY’21 were also
processed.
 THE UNSTOPPABLE
ENERGY SOLDIERS
39. Implementation of Official Language Policy bodies for organizing sports events as well as
developing sporting infrastructure. The support
Your Company makes concerted efforts for has enabled many sportspersons to achieve,
promotion and implementation of Official excel and bring home laurels for the nation
Language. Some of the efforts undertaken in and the organization. Some of the significant
this regard, during the year were: achievements of our sportspersons during the
year were as follows:
• Unicode Hindi software installed in all
offices. • ONGC has been conferred with prestigious
Rashtriya Khel Protsahan Puruskar 2020.
• Hindi workshops were conducted at
regular intervals in all work centres. • Three ONGCians namely Vishesh
Bhriguvanshi (Basketball), Ishant Sharma
• Hindi technical seminars/Webinars, Kavi
(Cricket), and Madhurika Patkar (Table
Goshties, Kavi Sammelan and Hindi plays
Tennis) were conferred the prestigious
were organised at various work centres.
“Arjuna Award” for the year 2020.
• Various programmes were conducted at
• ONGCian Manpreet Singh, was conferred
all work centres of the Company during
with the “Dhyanchand award” in the year
Rajbhasha Fortnight (14-28.09.2020) and
2020.
Vishva Hindi Divas (10.01.2021).
• The total number of National Awardees in
• Hindi Teaching Scheme of Government
the organization is as follows:
of India was implemented effectively at
all regional work centres of the company. o Padma Bhushan – 1
Hindi e-magazines were published by all
work centres. o Khel Ratna – 2

• E-Roster of Employees regarding working o Padma Shri – 6

knowledge of Hindi has been put in place.
o Arjuna Award – 45
• Paperless office has been made bilingual
for effective implementation of Official o Dhyanchand Award – 2
Language policy. Besides, Unicode has
• ONGCian Koneru Humpy, Padmashri and
been installed in SAP platform for enabling
Arjuna Awardee, led India to final of FIDE
bilingual working.
Online Chess Olympiad held in August
• For effective implementation of OL Policy, 2020. India and Russia were declared joint
86 winners of the Online Chess Olympiad.
a bilingual handbook has been prepared
and uploaded on internal portal reports.
• ONGCian Vidit Gujarathi was captain of
ongc.co.in for ready reference.
Indian Chess team which was declared
40. Sports Joint winners along with Russia.

Your Company continued its support for • Two ONGCians namely Shiva Thapa and
development of sports in the country by providing Sumit Sangwan, were part of Indian Boxing
employment opportunities to sportspersons and Team which won the Bronze medal in Alexis
also granting scholarships to budding talents Vastine Memorial International Boxing
in 22 games. Your Company also sponsored Tournament 2020 at Nantes (France) in
various sports associations/ federations/ sports
 ANNUAL REPORT
2020-21
October 2020 in their respective weight • ONGCian Yuki Bhambri, International
category. Tennis star, made a comeback with a
Doubles title at the ITF World Tour 2021 in
• ONGCian Sourav Kothari won the All India Lucknow.
National “A” level Snooker Championship
2021 held at Hyderabad in February, 2021 41. Corporate Social Responsibility (CSR)

• ONGCians Chess Grandmaster S P • As one of India’s foremost Nation Builders,

Sethuraman, International TT player G your Company is committed towards its
Sathiyan and International Carrom player social responsibility and in this pursuit
S. Ilavazhaki were among the 30 Sports has spent `5,530 Million during the FY’21,
persons felicitated with “Chief Minister’s which is higher than spending obligations
State Sports Award for Outstanding of the Company for the year.
Sportspersons” by Govt. of Tamil Nadu
at Chennai, in February 2021 for their • Your Company strongly stands by the
achievements in Sports over the past nation in its fight against the Covid-19
several years. virus, and took up various initiatives during
the year to support the communities to tide
• ONGCian and International Badminton over the health crisis.
player P.C. Thulasi conferred with the

Board’s Report
G.V. Raja Award (Kerala’s highest sports • Annual Report of CSR for the FY 2020-21 in
award) in February 2021 for her exceptional the prescribed format under the Companies
performances and accomplishments in the (Corporate Social Responsibility) Rules is
field of Badminton. appended as Annexure- ‘D’.

• ONGCian Ankita Raina won her WTA title 42. Regulatory or Courts order
as she and her Russian partner Kamilla During FY’21, there was no order or direction of
Rakhimova clinched the doubles event any court or tribunal or regulatory authority either
in the Phillip Island Trophy 2021 held in affecting Company’s status as a going concern
Melbourne. This win propelled the 28-year- or which significantly affected Company’s
old Ankita to top-100 in the WTA rankings business operations.
in doubles. She is the third Indian woman
player to be in top-100. 43. Directors’ Responsibility Statement

• ONGCian Ishant Sharma created history Pursuant to the requirement under Section 134
at Motera stadium Ahmedabad against of the Companies Act, 2013, with respect to
England by becoming only the 2nd Indian Directors’ Responsibility Statement, it is hereby 87
pacer after legendary Kapil Dev to play 100 confirmed that:
Tests. With this rare achievement, Ishant
has joined James Anderson and Stuart a) In the preparation of the annual
Broad in the list of current pacers who have accounts, the applicable accounting
played 100 or more Test Matches. standards were followed and there
were no material departures from
• ONGCian International Tennis star V.M. the same;
Ranjeet won Singles Title by winning the
AITA Ranking Tournament 2021 held in b) The Directors had selected such accounting
Gurugram. policies and applied them consistently and
made judgments and estimates that were
 THE UNSTOPPABLE
ENERGY SOLDIERS
reasonable and prudent, so as to give a Annual Return of the Company is placed at
true and fair view of the state of affairs of https://www.ongcindia.com/wps/wcm/connect/
the Company as at 31.03.2021 and of the en/investors/annual-return/
profit of the Company for the year ended
on that date; 47. Particulars of Employees

c) The Directors had taken proper and Your Company being a Government Company,
sufficient care for the maintenance the provisions of Section 197(12) of the
of adequate accounting records in Companies Act, 2013 and relevant Rules issued
accordance with the provisions of the thereunder, are not applicable.
Companies Act, 2013, for safeguarding the
The terms and conditions of the appointment of
assets of the Company and for preventing
Functional Directors are subject to the applicable
and detecting fraud and other irregularities;
guidelines issued by the Department of Public
d) The Directors had prepared the annual Enterprises (DPE), Government of India.
accounts of the Company on a ‘going
48. Audit Committee
concern’ basis;
In compliance with Section 177(8) of the
e) The Directors had laid down internal
Companies Act, 2013 & Regulation 18 of
financial controls which were being
SEBI (Listing Obligations and Disclosure
followed by the Company and that such
Requirements) Regulations, 2015 and DPE
internal financial controls were adequate
Guidelines the details regarding Audit Committee
and were operating effectively; and
is provided under Corporate Governance Report
f) The Directors had devised proper systems which forms part of this Report.
to ensure compliance with the provisions of
In the absence of minimum 2 independent
all applicable laws and that such systems
directors required to constitute the Audit
are adequate and operating effectively.
Committee, all matters required to be considered
44. Corporate Governance by the audit committee were directly reviewed
and considered by the Board since 08.09.2020.
A report on Corporate Governance, including
details of Board Meeting held, as stipulated There was no instance during FY’21, where the
under Regulation 34(3) read with Schedule V Board had not accepted any recommendation
of SEBI (Listing Obligations and Disclosure of the Audit Committee.
Requirements) Regulations, 2015 is appended
49. Vigil Mechanism
and forms part of the Annual Report.
88
Details regarding Vigil Mechanism is provided
45. Statutory Disclosures
under Corporate Governance report which
Your Directors have made necessary disclosures, forms part of this Annual Report.
as required under various enactments including
Apart from vigil mechanism, Company has a full-
the Companies Act, 2013 and the SEBI (Listing
fledged Vigilance Department headed by Chief
Obligations and Disclosure Requirements)
Vigilance Officer. The Department operates on
Regulations, 2015.
the guidelines of Central Vigilance Commission
46. Annual Return on Vigilance management in Public Sector
Enterprises and is guided further by instructions
Pursuant to Section 134(3)(a) read with issued by the Department of Personnel and
Section 92(3) of the Companies Act, 2013
 ANNUAL REPORT
2020-21
Training and MoPNG from time to time. The comments of Comptroller & Auditor General
Complaints are handled as per the complaint of India (C&AG) form part of this Report and
handling policies stipulated in Vigilance Manual attached as Annexure- ‘E’.
issued by the Central Vigilance Commission.
During FY’21, no fraud has been reported by the
The prime focus of Vigilance activities has been Auditors of the Company.
Preventive and Participative Vigilance by having
regular interaction with employees and other 53. Cost Audit
stakeholders to spread awareness among the
There were 6 cost accountants firms, namely
masses.
M/s. M. Krishnaswamy & Associates, M/s.
50. Risk Management Policy and Implementation Musib & Co., M/s. Chandra Wadhwa &
Co., M/s. Bandopadhyaya Bhaumik & Co.,
The Company has a Board approved Risk M/s. N. D. Birla & Co. and M/s. Joshi Apte &
Management Policy. Risk framework and Risk Associates, appointed by the Board as Joint
portfolio are periodically monitored by the Risk Cost Auditors of the Company for FY’21.
Management Committee, Audit Committee and Necessary cost audit report shall be prepared
the Board. by the said auditors and filed with the Central
Government as per requirements under the
51. Auditors Companies Act, 2013.

Board’s Report
The Statutory Auditors of your Company are Company maintains Cost Records, as specified
appointed by the CAG. There were 6 chartered under Section 148(1) of the Companies Act,
accountants firms namely M/s. G.M. Kapadia & 2013.
Co., M/s. R. Gopal & Associates, M/s. SARC &
Associates, M/s. Kalani & Co., M/s. R.G.N. Price 54. Secretarial Audit
& Co. and M/s S. Bhandari & Co. who were
appointed as Joint Statutory Auditors of the Secretarial Audit Report of your Company for the
Company for FY’21. financial year 2020-21, as issued by M/s. Ashu
Gupta & Co., Company Secretaries in whole-
The Statutory Auditors have been paid a total time practice is enclosed as Annexure- ‘F’,
remuneration of `45.32 Million towards audit which forms part of this Report.
fees, certification and other services. The
above fees are exclusive of applicable GST and Reply of management to the observations made
re-imbursement of actual travelling and out of in the Secretarial Audit Reports are as under:-
pocket expenses.
1. Board Composition & Evaluation
52. Auditors’ Report on the Accounts 89
The Company, being a Central Public
Statutory Auditors Reports and the comments of Sector Enterprise (CPSE), composition of
CAG on standalone and consolidated accounts its Board of Directors is the prerogative of
of the Company are placed along with respective the President of India as provided under
financial statements for FY’21. the Articles of Association of the Company.
The Company has been requesting the
There is no qualification in the Statutory Auditors MoPNG for appointment of requisite
Reports on the Financial Statements of the number of Independent Directors including
Company for FY’21. Independent Woman Director, from time to
 THE UNSTOPPABLE
ENERGY SOLDIERS
time, to meet statutory requirements. As iii. Shri Subhash Kumar, Director (Finance) has
the Company has only one Independent been entrusted with the additional charge of
Director since 08.09.2020, meeting of Chairman & Managing Director w.e.f. 01.04.2021
Independent Directors could not be and accordingly, he has been appointed as
convened. the Chairman & Managing Director and Chief
Executive Ofcer (CEO) of the Company.
The Ministry of Corporate Affairs (MCA)
vide notications dated 05.06.2015 iv. Shri Vivek Chandrakant Tongaonkar, Executive
and 05.07.2017 exempted government Director (Finance), has been appointed as Chief
companies from the provisions relating Financial Ofcer (CFO) of the Company w.e.f.
to appointment, performance evaluation 23.04.2021.
and remuneration of directors under the
Companies Act, 2013. The Company v. Shri Rajni Kant has been appointed as the
has requested to the Department of Company Secretary w.e.f. 29.06.2021.
Public Enterprises (DPE) to arrange
Cessations
similar exemptions under SEBI (Listing
Obligations and Disclosure Requirements) i. Shri Shashi Shanker, on his superannuation,
Regulations, 2015 in line with the ceased to be the Chairman & Managing Director
Companies Act, 2013. of the Company w.e.f. 01.04.2021.

2. Audit Committee and Nomination & ii. Shri Rajesh Kakkar, on his superannuation,
Remuneration Committee ceased to be the Director (Offshore) w.e.f.
01.05.2021.
There being only one Independent Director
on the Board since 08.09.2020, Audit iii. Smt. Ganga Murthy, Independent Director
Committee and Nomination & Remuneration ceased to be director of the Company w.e.f.
Committee were not constituted for want of 08.09.2020.
minimum 2 independent directors. Agenda
items pertaining to these committees were iv. Shri Sanjay Kumar Moitra, on his superannuation,
directly considered at the Board meeting. ceased to be Director (Onshore) of the Company
w.e.f. 01.06.2020.
55. Details of changes in Directors and other Key
Managerial Personnel: v. Shri M E V Selvamm, ceased to be the Company
Secretary w.e.f. 25.06.2021.
The following changes took place in the Board/
Key Managerial Personnel of the Company The Board places on record its appreciation for
90 during the year and up-to date of Report: commendable contribution made by S/
Shri Shashi Shanker, Sanjay Kumar Moitra,
Appointments Rajesh Kakkar and Smt. Ganga Murthy during
their tenure on the Board of your Company.
i. Shri Om Prakash Singh has been appointed as
the Director (Technology & Field Services) of the Directors liable to retire by Rotation
Company w.e.f. 01.04.2020.
Dr. Alka Mittal, Director (Human Resources)
ii. Shri Anurag Sharma has been appointed as is liable to retire by rotation and being eligible
the Director (Onshore) of the Company w.e.f. is proposed to be re-appointed at the Annual
01.06.2020. General Meeting.
 ANNUAL REPORT
2020-21
As on 31.03.2021, there were 10 Directors on constructive suggestions received from Auditors
the Board, comprising of 7 Whole-time Directors and Comptroller and Auditor General of India
(including the Chairman & Managing Director) and are grateful for their continued support and
and 3 Non-Executive Directors - 2 Government cooperation.
Nominee Directors and 1 Independent Director.
There were vacancies for 8 Independent Your Directors thank all share-owners, business
Directors to meet the statutory requirements. partners and all members of the ONGC Family
for their faith, trust and condence reposed in
Declaration by Independent Directors the Board.

The Company has received the declaration Your Directors wish to place on record their
from Independent Directors conrming that they sincere appreciation for the unstinting efforts and
met the criteria prescribed under the provisions dedicated contributions put in by the ONGCians
of Companies Act, 2013 and SEBI (Listing at all levels, in spite of the challenging and
Obligations and Disclosure Requirements) unprecedented pandemic situation, to ensure
Regulations, 2015. that the Company continues to sustain, grow
and excel.
56. Acknowledgement
On behalf of the Board of Directors
Your Directors are highly grateful for all the

Board’s Report
help, guidance and support received from the
Sd/-
Ministry of Petroleum and Natural Gas, Ministry
of Finance, DPE, MCA, Ministry of External 27.08.2021 (Subhash Kumar)
Affairs, and other agencies in Central and State New Delhi Chairman & Managing Director
Governments. Your Directors acknowledge the

91
 THE UNSTOPPABLE
ENERGY SOLDIERS
Annexure-A

Awards and Accolades

ONGC in Forbes list of “World’s Best Employers” Management Award” for the second consecutive
year.
ONGC has been ranked 377th in the Forbes World Best
Employers list 2020, evaluated on parameters such ONGC shines at Learning and Development
as image, economic footprint, talent development, Summit, bagged four awards including ‘Diversity
gender equality and social responsibility. and Inclusive Champion Award’.

Forbes 2000 list 2021 ONGC has been conferred with ‘Best Overall
Performance for Upstream Sector Award’ by
Forbes has ranked the Company 13th largest in India
Petroleum Conservation Research Association at
and 665th worldwide in Global 2000 list based on
Saksham-2020.
sales, profit, assets and market value.
Rashtriya Khel Protsahan Puruskar
Platt’s Top 250
Hon’ble President of India, Shri Ram Nath Kovind,
ONGC is ranked 11th among global energy majors in
presented “Rashtriya Khel Protsahan Puruskar” in
the coveted Platt’s Top 250 Global Energy Company
the category “Encouragement to sports through
Rankings 2020.
Corporate Social Responsibility”. The award was
Fortune Global 500 list 2021 bestowed for immense contribution of the Company
in the development and promotion of sports in the
ONGC is ranked 243rd globally and 4th in India in 2021 country.
ranking of Fortune Global 500 list.
SKOCH Silver Award
FIPI Oil & Gas Awards 2020 - 2 honours
The Energy Maharatna has been honoured with
ONGC awarded with two major honours in FIPI Oil “SKOCH Silver Award” under the category “Response
& Gas Awards 2020 - “Best Project Management to COVID-19” for ensuring energy security of the
Company” and its employee Ms. Sayanima Kisku nation & aligning its resources with national priorities
was awarded with the “Young Achiever of the year during the pandemic.
(Female)”.
92 IPSHEM bags ‘Apex India Green Leaf & CSR
Golden Peacock National Quality Award 2020 Awards 2019

ONGC has been conferred with the “Golden Peacock ONGC’s institute IPSHEM Goa has received the
National Quality Award” 2020. “Apex India Green Leaf & CSR Awards 2019” from
Apex India Foundation for its outstanding contribution
Golden Peacock Environment Management Award
towards environment excellence.
2020
IPSHEM bags Global Environment Award 2020
ONGC in recognition of its outstanding practices
in protection of environment has been awarded IPSHEM, Goa has received prestigious “Energy &
with the prestigious “Golden Peacock Environment Environment Foundation Global Environment Award
 ANNUAL REPORT
2020-21
2020” under Platinum category organized by The Assam conferred with Greentech Awards
Energy and Environment Foundation.
In recognition of its outstanding performance in
IPSHEM conferred Greentech Environment Award maintaining safety and environment management,
2020 Assam Asset has been conferred with four excellence
awards at the “Annual Greentech Safety and
IPSHEM, Goa has been declared the winner of the
Environment Awards 2020”.
“20th Greentech Environment Award” by Greentech
Foundation for its outstanding achievements in
“Environment Protection” category.

Annexures to Board’s Report

93

ONGC officer Ms. Sayanima Kisku was awarded “Young Achiever

of the year” at the FIPI Oil & Gas Awards 2020, where ONGC was
also honoured as “Best Project Management Company”
 94
Annexure-B

ENERGY SOLDIERS
THE UNSTOPPABLE
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 under third proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s length basis: “Nil”
2. Details of material contracts or arrangement or transactions at arm’s length basis:

Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount
No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
1 Mangalore Refinery and Subsidiary Sale of crude oil for FY 20-21 As per Crude oil sale 38,887.72
Petrochemicals Limited agreement
(MRPL)
2 Mangalore Refinery and Subsidiary Purchase of petroleum oil and for FY 20-21 As per contractual 10,252.84
Petrochemicals Limited lubricants/high speed diesel agreement
(MRPL)
3 Mangalore Refinery and Subsidiary Lease of Office space for FY 20-21 As per contractual 52.85
Petrochemicals Limited agreement
(MRPL)
4 Mangalore Refinery and Subsidiary Guarantee fee received for for FY 20-21 Actual 8.24
Petrochemicals Limited import of crude
(MRPL)
5 Mangalore Refinery and Subsidiary Sale of 49 % equity shares of for FY 20-21 Consideration and 12,169.49
Petrochemicals Limited OMPL to MRPL and stamp stamp duty against
(MRPL) duty on the same sale of equity shares
of OMPL
6 Mangalore Refinery and Subsidiary Tanker/Vehicle hiring charges/ for FY 20-21 Other Service 0.34
Petrochemicals Limited Misc Reimbursement of HR
(MRPL) Summit Expenses
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount
No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
7 Mangalore Refinery and Subsidiary Manpower deputation/ for FY 20-21 Manpower deputation 63.94
Petrochemicals Limited Miscellaneous receipt & other services
(MRPL) on account of transfer of
white goods & laptop & Bill
Discounting Charges on
invoices
8 Mangalore Refinery and Subsidiary Bill discounting of invoices for FY 20-21 Commitment given 3,258.96
Petrochemicals Limited raised on MRPL with recourse
(MRPL) to ONGC
9 ONGC Videsh Limited Subsidiary Dividend income received for FY 20-21 As approved by OVL 3,000.00
(OVL)
10 ONGC Videsh Limited Subsidiary Guarantee fee in respect of for FY 20-21 non cash transcation 405.79
(OVL) financial guarantee extended (Ind As fair valuation)
to OVL
11 ONGC Videsh Limited Subsidiary Guarantee fee in respect of for FY 20-21 non cash transcation 0.02
(OVL) financial guarantee extended to (Ind As fair valuation)
OVRL (Subsidiary of OVL)
12 ONGC Videsh Limited Subsidiary Inter-corporate Loan taken for FY 20-21 Inter-corporate Loan 2,400.00
(OVL) given
13 ONGC Videsh Limited Subsidiary Repayment of Loan for FY 20-21 Repayment of Loan (2,400.00)
(OVL)
14 ONGC Videsh Limited Subsidiary Interest on loan taken for FY 20-21 Interest expenses on 7.20
(OVL) above loan
15 ONGC Videsh Limited Subsidiary Guarantee fee from OVVL for FY 20-21 Guarantee fee 264.40

ANNUAL REPORT
(OVL) (Subsidiary of OVL)
16 ONGC Videsh Limited Subsidiary Guarantee fee from BREML for FY 20-21 Guarantee fee 0.01
(OVL) (Subsidiary of OVL)
17 ONGC Videsh Limited Subsidiary Expenses incurred on behalf for FY 20-21 Expenses 575.14
(OVL) of OVL

2020-21
95

Annexures to Board’s Report

 96
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount

ENERGY SOLDIERS
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No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
18 ONGC Videsh Limited Subsidiary Fee for the Project- 'Review for FY 20-21 As per contractual 2.45
(OVL) of FDP Ph-3 development of agreement
A1&A3 Blocks of Myanmar'
19 ONGC Videsh Limited Subsidiary Consultancy services rendered for FY 20-21 As per contractual 7.24
(OVL) to OVL Myanmar agreement
20 ONGC Videsh Limited Subsidiary Design of Well of Colombia for FY 20-21 As per contractual 2.95
(OVL) agreement
21 ONGC Videsh Limited Subsidiary Platts Subscription charges for FY 20-21 Subscription charges 27.61
(OVL)
22 ONGC Videsh Limited Subsidiary Integrated study of 3D seismic for FY 20-21 As per contractual 16.26
(OVL) data agreement
23 ONGC Videsh Limited Subsidiary Deemed Capital Contribution for FY 20-21 non cash transcation 258.52
(OVL) for Gaurantee Fee on issue of (Ind As fair valuation)
Financial guarantees by ONGC
on behalf of OVL
24 ONGC Videsh Limited Subsidiary Deemed Capital Contribution for FY 20-21 non cash transcation 24.92
(OVL) for Gaurantee Fee on issue of (Ind As fair valuation)
Financial guarantees by ONGC
on behalf of OVRL
25 ONGC Videsh Limited Subsidiary Performance Guarantees in effective from Guarantee amount 1,837.25
(OVL) favor of National oil company 05.03.2007 (`3960.12 million)
of Libya for Area 43 for USD
61 million.
26 ONGC Videsh Limited Subsidiary ONGC, the parent company effective from Guarantee amount 1,940.14
(OVL) guarantee has been given 27.03.2014 (`1246.46 million)
in respect of Block SS-
04, Bangladesh dated
27/03/2014 in favour of M/s
PETROBANGLA in respect of
the Company's obligations
as set forth in the Production
Sharing Contract.
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount
No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
27 ONGC Videsh Limited Subsidiary ONGC, the parent company effective from Guarantee amount 1,227.28
(OVL) guarantee has been given 27.03.2014 (`2103.41 million)
in respect of Block SS-
09, Bangladesh dated
27/03/2014 in favour of M/s
PETROBANGLA in respect of
the Company's obligations
as set forth in the Production
Sharing Contract.
28 ONGC Videsh Limited Subsidiary ONGC, the parent company effective from Guarantee amount 2,065.07
(OVL) guarantee has been given 04.08.2014 (`1,944.80 million)
in respect of Onshore Block
PSC B-2, Myanmar dated
04/08/2014 in favour of
Myanma Oil & Gas Corporation
in respect of the Company's
obligations as set forth in the
Production Sharing Contract.
29 ONGC Videsh Limited Subsidiary ONGC, the parent company effective from Guarantee amount 1,359.57
(OVL) guarantee has been given in 04.08.2014 (`1,280.39 million)
respect of Onshore Block EP-3,
Myanmar dated 04/08/2014 in
favour of Myanma Oil & Gas
Corporation in respect of the
Company's obligations as set
forth in the Production Sharing
Contract.

ANNUAL REPORT
2020-21
97

Annexures to Board’s Report

 98
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount

ENERGY SOLDIERS
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No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
30 ONGC Videsh Limited Subsidiary USD BOND for acquisition of Due on Guarantee amount 37,296.18
(OVL) 2.7213% participating interest 07/05/2023 (`38,306.10 million)
of Hess Corporation in the ACG
fields and 2.36% participating
interest in the BTC Pipeline) of:
10 year USD 500 million-Due
07 May 2023
31 ONGC Videsh Limited Subsidiary Financial guarantee for Long Due on Guarantee amount 51,594.65
(OVL) term Loan of USD 1775 Million 27/11/2025 `58,497 million
for acquisition of R-2 10% PI
from Anadarko
32 ONGC Videsh Limited Subsidiary Financial guarantee for Due on Guarantee amount 55,655.66
(OVL) Mozambiq. BREML_ Videocon 15/07/2024 `57,162.73 million
6% USD 750 Million - Due 15th
July 2024
33 ONGC Videsh Limited Subsidiary Financial guarantee for Due on Guarantee amount 46,064.70
(OVL) Mozambiq. OVL _ Anadrako 15/07/2021 `44,544.20 million
10% Euro 525 Million - Due
15th July 2021
34 ONGC Videsh Limited Subsidiary Financial guarantee for USD Due on Guarantee amount 32,041.64
(OVL) 400 Million Bonds 2.875% 27/01/2022 `32,909.28 million
due 27 Jan 2022; Guarantee
given to OVL; capped at 109
per cent. of the total aggregate
principal amount
35 ONGC Videsh Limited Subsidiary Financial guarantee for USD Due on Guarantee amount 48,062.46
(OVL) 600 Million Bonds 3.75% due 27/07/2026 `49,363.92 million
27 Jul 2026 Guarantee given to
OVL; capped at 109 per cent.
of the total aggregate principal
amount
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount
No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
36 ONGC Videsh Limited Subsidiary Term Loan of JPY 38 Billion Due on Guarantee amount 25,957.65
(OVL) taken to refinance Bridge 26/04/2024 `27,264.92 million
Finance of USD 875 Million
taken for acquisition of 11%
shares of CJSC Vankorneft by
ONGC Videsh Vankorneft Pte
Ltd, Singapore.
JPY 38 Billion facility due April
2024: Guarantee capped at
103%of Total Commitments
37 ONGC Videsh Limited Subsidiary Long term Loan of USD Due on Guarantee amount 36,960.12
(OVL) 500 Million taken for part 12/07/2024 `38264.07 million
repayment of USD Bond
of USD 750 million due for
repayment in July 2019
38 ONGC Videsh Limited Subsidiary Long term Loan of USD 1000 Due on Guarantee amount 73,866.15
(OVL) Million taken for part pre- 30/03/2025 `75487.93 million
payment of USD 1775 million
Term Loan on 31st March
2020
39 ONGC Videsh Limited Subsidiary Debt Service Undertaking Due on Guarantee amount 2,343.60
(OVL) provided by ONGC with 15/06/2038 `2,343.60 million
respect to the Project
Financing arrangement. ONGC
has provided Debt Service
Undertaking amounting
USD 3072 million for 16%

ANNUAL REPORT
PI in Mozambique. On 26th
March'21 drawdown of USD
199.30 million was recieved
by the project, for 16% PI the
amount is USD 31.89 million.

2020-21
99

Annexures to Board’s Report

 100
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount

ENERGY SOLDIERS
THE UNSTOPPABLE
No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
40 Hindustan Petroleum Subsidiary Sale of crude oil and value for FY 20-21 As per sale 111,234.40
Corporation Limited added products agreement
(HPCL)
41 Hindustan Petroleum Subsidiary Purchase of petroleum oil and for FY 20-21 As per contractual 2,066.36
Corporation Limited lubricants/high speed diesel agreement
(HPCL)
42 Hindustan Petroleum Subsidiary Rent for Office for FY 20-21 Other Service 0.06
Corporation Limited
(HPCL)
43 Hindustan Petroleum Subsidiary Development of Hirapur Oil for FY 20-21 Other Service 12.74
Corporation Limited Field by Prize Petroleum
(HPCL) Company Limited (Subsidiary
of HPCL)
44 Hindustan Petroleum Subsidiary Dividend income received for FY 20-21 Dividend 7,593.74
Corporation Limited
(HPCL)
45 Petronet MHB Limited Subsidiary Dividend income received for FY 20-21 Dividend 1,646.00

46 ONGC Tripura Power Joint Venture Sale of Natural gas for FY 20-21 As per contractual 7,418.86
Company Limited agreement
(OTPC)
47 ONGC Tripura Power Joint Venture Dividend income received for FY 20-21 Dividend 448.00
Company Limited
(OTPC)
48 ONGC Tripura Power Joint Venture Rent of office space at Scope for FY 20-21 As per contractual 12.18
Company Limited Minar agreement
(OTPC)
49 ONGC Petro additions Joint Venture Sale of Naphtha & C2-C3 for FY 20-21 As per contractual 43,172.95
Limited (OPaL) agreement
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount
No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
50 ONGC Petro additions Joint Venture ROU Charges for pipeline for FY 20-21 Pipeline service 0.05
Limited (OPaL) received
51 ONGC Petro additions Joint Venture Subscription of share warrants for FY 20-21 As per contractual 8,709.09
Limited (OPaL) agreement
52 ONGC Petro additions Joint Venture Deemed investment for for FY 20-21 non cash transcation 16.60
Limited (OPaL) Financial guarantees of interest (Ind As fair valuation)
on Compulsory Convertible
Debentures
53 ONGC Teri Biotech Joint Venture Bio-remediation services for FY 20-21 As per contractual 303.43
Limited (OTBL) received agreement
54 ONGC Teri Biotech Joint Venture Field study charges and rent for FY 20-21 As per contractual 0.52
Limited (OTBL) for colony accommodation agreement
provided
55 Dahej SEZ Limited Joint Venture Lease rent for SEZ land of C2- for FY 20-21 As per contractual 15.30
(DSEZ) C3 plant agreement
56 Indradhanush Gas Grid Joint Venture Manpower deputation for FY 20-21 Manpower deputation 16.80
Limited (IGGL)
57 Indradhanush Gas Grid Joint Venture Subscription to Equity for FY 20-21 Subscription to 490.00
Limited (IGGL) Equity
58 Pawan Hans Limited Associate Hiring of helicopter services for FY 20-21 As per contractual 1,288.38
(PHL) net liquidated damages agreement
59 Petronet LNG Limited Associate Facilities services received at for FY 20-21 As per contractual 824.79
(PLL) C2-C3 plant agreement

ANNUAL REPORT
60 Petronet LNG Limited Associate Purchase of LNG for FY 20-21 Actual 8,992.74
(PLL)
61 Petronet LNG Limited Associate Dividend Income received for FY 20-21 Actual 2,812.50
(PLL)

2020-21
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Annexures to Board’s Report

 102
Sl. (a) Name(s) of the related party and (b) Nature of contracts/ (c) Duration of (d) Salient terms of the contracts (e) (f) Amount

ENERGY SOLDIERS
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No. nature of relationship arrangements/transactions the contracts / or arrangements or transactions Date(s) of paid as
arrangements/ including the value, if any: approval advances,
Name Relationship transactions Salient terms Transaction by the if any:
value (` in Board, if
Million) any:
62 ONGC CSSS Trust Trust Contribution for FY 20-21 Actual 1,099.10

63 ONGC Sahyog Trust Trust Contribution for FY 20-21 Actual 23.85

64 ONGC PRBS Trust Trust Contribution for FY 20-21 Actual 12,166.16

65 ONGC Contributory Trust Contribution for FY 20-21 Actual 14,387.06

Provident Fund Trust
66 ONGC Gratuity Fund Trust Reimbursement for FY 20-21 Actual 4,649.07

67 ONGC Energy Center Trust Contribution for Research & for FY 20-21 Actual 100.00
Trust development
68 ONGC Energy Center Trust Rental income for land for FY 20-21 Actual 7.70
Trust
69 ONGC Start Up Fund Trust Contribution for FY 20-21 Actual 79.21
Trust
70 ONGC Foundation Trust Contribution for FY 20-21 Actual 282.20

Sd/-
27.08.2021 (Subhash Kumar)
New Delhi Chairman & Managing Director
 ANNUAL REPORT
2020-21
Annexure-C

1. Energy Conservation and Technology • Construction work started for Energy

Absorption Efficient office building at Kolkata. Similar
buildings are already operational at
a. The steps taken or impact on conservation Dehradun, Delhi, Mumbai and Chennai.
of Energy
b. Steps for utilizing alternate sources of
• Energy Audits were carried out in various Energy
rigs/ installations across ONGC through
in-house energy auditors. A total of • Total installed wind power generation
287 energy audits were carried out in capacity of ONGC is 153 MW (51MW
2020-21. Bhuj plant installed in 2008-09 and 102
MW Jaisalmer plant installed in 2015-16).
• After successful installation of two During 2020-21, total 181.41 Million unit
Micro Turbine generators at Linch GGS, electricity was generated from these wind

Annexures to Board’s Report

Mehsana and Geleky Assam, further two power plants.
and three no. micro-turbines are being
installed at MH Asset and Mehsana Asset • Ground Mounted Solar power plants of
respectively 5.0 MW and 1.09 MW were commissioned
during 2020-21 at Rajamundary and
• 310,000 LED lights have been installed Assam respectively. The total installed
so far across various work centres of solar power generation capacity in ONGC
ONGC. This would realize into an annual now stands at 31 MW. During 2020-21,
Electrical energy savings of around 59 total 37.01 Million unit electricity was
Million units (MU) and monetary savings generated from solar power.
to the tune of `413 Million per annum on
electricity consumption on lighting. • Ground mounted solar power plant of 5
MW capacity is under execution at Hazira.
• At Hazira Plant, optimization of steam It is expected to be commissioned in
pressure, blow down and loading of 2021-22.
boilers was carried out in Cogeneration
Plant. Online Steam and Water Analysis c. Capital investment on energy conservation
System (SWAS), at a cost of `11.3 million, equipment
has been installed. These measures in 103
Cogen has resulted into an annual saving The total capex on solar-based power plants
of `128.8 million. commissioned during 2020-21 is `306.2
Million. The details are as under-
• At Ankleshwar Asset, installation of flare
gas recovery system at CPF Gandhar • Ground Mounted Solar 5.0 MW in
and ESP-253 is under assembly (by Rajamundary: `249.9 million
installing two compressors of 20,000 • Ground Mounted Solar 1.09 MW at
SCMD capacity each). Assam: `56.3 million
 THE UNSTOPPABLE
ENERGY SOLDIERS
2. Technology Absorption mapping In Rokhia, Agartala,and Santhal,
Mehsana areas.
Efforts made for absorption of new technologies
and benefits derived during the year are: e. Seisnetics tool: The tool is a high impact
seismic software application that rapidly
a. Bioreactor/fermenter: It is an instrument enhances the interpreter’s ability to identify
that supports the growth of aerobic and leads and prospects on 3D seismic volume. It
anaerobic microbes under controlled also helps in evolving a Geological Model and
condition of temperature, pH, aeration helps in the preparation of Attribute Maps.
(DO), antifoam agent and rotation, to The software has been installed in dedicated
get desired microbial metabolite and/or work stations of GEOPIC. The software is
biomass. It is being used to culture the planned to be used in different basin projects
microbial cells to observe lipid accumulation of 2021-22.
in cells
f. New modules in EXPLORE- Integrated Data
b. 2D Gas chromatogram is used for Platform used in:
characterizing the complex fractions of crude
oils i.e. hydrocarbons fingerprinting according • Exploratory Wells in progress-EWIP
to individual carbon and group wise such as • Exploratory Available Locations (RFD)
n-paraffins, iso-paraffins, naphthenes, olefins
• Acreage
and aromatics. It provides a complete ‘picture’
of the composition of a sample with enhanced This platform efficiently monitors the
resolution and is being used for geochemical Exploratory Locations and Inconclusive
characterization of crude oils. The technology Wells, instantly deduces the final status of
was used in petroleum geochemistry of Assam the Location and provides online viewing
shelf and in umbrella project “New oil finds in and generation of reports including details
KG Basin” of Application phases, Relinquishments,
Payment details, MWP vs Actuals, Available
c. DS Petrophysics Software is being used locations, Discoveries and Wells.
in various projects. The software has got
Petrophysical evaluation and rock physics g. Passive Seismic Tomographic (PST)
modelling for common lithological reservoirs survey technology initiated in NE region
and is being used for evaluation of the in collaboration with M/s Seismiotech SA,
limestone reservoirs with lesser clay content. Greece. Provides integrated Acquisition,
104 Decision Space interpretation suite is a Processing and Interpretation, to be executed
module for petro-physics interpretation and in two phases in parts of West Tripura PML
the licence is being used by various agencies (1327 SKM) and Tulamura PML (39 SKM).
across ONGC. Phase-I work has been completed during the
FY 2020-21.
d. Global Navigation Satellite System (GNSS)
Survey equipment: The instrument has h. Indigenous development of new software:
precision of 1cm per km. The instrument is
• PLUNG Lift: This software is used to
helpful in survey and mapping in large areas.
determine the liquid loading propensity
The equipment was successfully used in
 ANNUAL REPORT
2020-21
of a well. It is also used to assess the tubing/ rod failures in SRP wells through
suitability of a well for Plunger Lift system periodic rotation of tubing to avoid continuous
and provides the indicative design of the localized rubbing between tubing and sucker
Plunger Lift system. rods.

• DAIL Software: Dynamic Application l. Ahmedabad Asset successfully

of Intermittent Gas Lift (DAIL is a commissioned new technology of HOOS
mechanistic software which carries out (Heavy Oil Operating System) at well
dynamic simulation of the Intermittent NGM#169 on 31.01.2021. The HOOS
Gas Lift process to predict, analyze and technology is a special Artificial oil lifting
optimize its performance. It performs technology suitable for producing highly
a realistic simulation of the transient viscous crude.
physical processes in an Intermittent Gas
Lift cycle. m. Tripura Asset installed plunger lifts in 4 gas
wells (RO#70, RO#24, AD#38 & SD#08)
• Easy-lift: This user-friendly interface for regular deliquification. Subsequent to

Annexures to Board’s Report

can be used for carrying out design of installation of plunger lift, combined gas gain
intermittent gas lift wells with functional of ~ 56,000 SCMD has been accrued.
safety and is based on both surface
opening (PSO) and closing (PSC) n. Tiny bubble technology for processing
pressures. of produced water was approved after
successful Pilot implementation in Kathana
i. Wax Removal by Controlled Exothermic GGS of Cambay Asset.
Chemical Reaction: Technology for wax
removal through controlled exothermic o. Cauvery Asset installed in-house developed
chemical reaction, successfully implemented remote well monitoring system in 2 wells of
in 3 wells of Ankleshwar during FY’21. Narimanam field. The system captures &
displays well parameters like FTHP, ABP,
j. Automation of SRP System Based on Artificial CHP/GIP, SRP Motor status round the clock
Intelligence: Load Cell for recording the and logs data every five minutes.
load and position of the polished rod has
been indigenously developed. Supervisory p. Induction of Managed Pressure Drilling
Software, to continuously monitor and (MPD): MPD is an adaptive drilling process
transmit Surface Dynagraphs of all the wells used to precisely control the annular pressure
in the field to base station, a Diagnostic profile throughout the wellbore. The objectives 105
Software, in MATLAB, used to convert are to ascertain the downhole pressure
Surface Dynagraph to Pump Dynagraph environment limits and to manage the annular
and an Expert Software, based on Artificial hydraulic pressure profile accordingly. It was
Intelligence for interpretation of Pump inducted for the first time in ONGC at Tripura
Dynagraphs by method of pattern recognition Asset to mitigate down-hole complications
have been successfully developed. arising from the thin margin between
formation pressure and mud weight. The well
k. Surface Rod rotator technology has been BRMAF was successfully completed with this
implemented in Mehsana and Ahmedabad technology. Second well ROAH_Sub is under
Assets. This technology will help to reduce drilling.
 THE UNSTOPPABLE
ENERGY SOLDIERS
q. Introduction of Micro Bubble technology: b. North Kadi polymer flood: Field implementation
Micro Bubble technology developed by IDT is of Polymer Flood in North Kadi started from
used to drill reservoirs with low pressure (4.5- 17.01.2020. The performance is encouraging
6.0 ppg). As a part of validation, 7 wells have and study is under progress for expansion
so far been drilled in offshore. It is planned of the process to nearby area. It envisages
to be used extensively in sub-hydrostatic incremental oil recovery of 4.2%.
reservoirs.
c. Immiscible gas injection in Borholla field:
r. For controlling of mud losses in Reservoir and Gravity assisted Immiscible gas injection in
Non-reservoir sections, “System LCM” Drillezy depleted reservoir in KSU-5 Sand of Borholla
and Fracseal were introduced and planned field has been planned with an objective
for 10 phases initially for field evaluation. Field to enhance oil production and increase
trial is under progress. Barablend LCM pill recovery from a depleted dipping reservoir.
was used to successfully remediate Activity/ The plan envisages recovery of 36%. The
Lost circulation problem and enabled testing process was initiated though two wells in
of the basement formation at Well BH#O. January 2017 on pilot scale. This is the first
EOR implementation in Assam. Post approval
s. Introduction of HT Starch in drilling fluid: This of FR, the project is under implementation.
chemical is poly grafted starch developed by
IDT Dehradun which works up to 140°C as d. Gas Assisted Gravity Drainage (GAGD)
a fluid loss additive in reservoir drilling fluid. process: A comprehensive study on the
The validation has been done in two wells GACD process has been carried out for
successfully. improving recovery from mid Bokabil pay of
Kasomarigaon field. It envisages recovery
t. IDT has developed indigenous Base Oil of 33% by 2030 through 4 OP and 2 gas
for Low toxic Oil base Mud (LTSOBM) in injectors, FR has been approved and project
association with IOCL & BPCL. ONGC is is under implementation.
using the same successfully in Mumbai
Offshore thereby avoiding the import of base e. Immiscible Gas Injection (EOR) in Bokabil
oil as a substitute. pay of Khoraghat Field: To maintain
reservoir health with recovery & productivity
Technology developed/tested in house and maximization, two inputs considered with 1
absorbed during the year for IOR / EOR LCMD in each injector. The scheme envisages
processes: the recovery of 22.7% from 11.1% by 2035.
106
a. Bechraji Polymer flood pilot: This is the first f. Cyclic Steam Stimulation (CSS) in Lanwa:
time polymer flood planned in heavy oil and Commercialization of CSS full field will
envisaged potential to improve recovery by increase the recovery factor significantly from
4%. The pilot was successful in achieving its 6% to 13%. FR is approved and integrated
objectives. The commercialization of project approach for pilot implementation has been
is planned for implementation now and planned.
envisages to improve incremental recovery
by 7%.
 ANNUAL REPORT
2020-21
Details of Imported technologies (during the last 3 years):

SI. Name of the Technology Year of import Whether If not fully absorbed, areas where
No. technology absorption has not taken place and
fully the reason thereof
absorbed
1 UV-VIS Spectrophotometer 2018-19 Yes N.A.
2 Kappa Software 2018-19 Yes N.A.
3 Advanced Modules of Techlog Software 2018-19 Yes N.A.
from Geoquest Systems B.V.
4 High Performance Computing Cluster 2018-19 Yes N.A.
(HPCC) for processing centres
5 Straddle Packer with RCI (Reservoir 2018-19 Yes N.A.
Characterisation Instrument for Formation
Fluid Sampling )
6 Remote sensing image processing 2019-20 Yes N.A.
software suite with extensions/ add-ins for

Annexures to Board’s Report

physics-based atmospheric correction.
7 Carbon Analyzer 2019-20 Yes N.A.
8 Advanced Core Flood Apparatus for WSO 2019-20 Yes N.A.
& PM studies
9 SP flooding /Wettability alteration using 2019-20 No The technology will be absorbed
Novel chemicals during pilot implementation in
Bechraji/ MH/ Heera reservoirs.
10 Low Frequency Passive Seismic (LFPS) 2019-20 Yes N.A.
11 Global Navigation Satellite System 2020-21 Yes N.A.
(Model Leica GS16) with RTKplus and
SmartLink for topographical positioning
12 Bioreactor/fermenter 2020-21 Yes N.A.
13 2D Gas chromatogram 2020-21 Yes N.A.
14 ASP and SP flooding using Novel 2020-21 No The technology will be absorbed
chemicals during pilot implementation in
Bechraji/ MH/ Heera reservoirs.
15 Seisnetics 2020-21 Yes N.A.
16 Heavy Oil Operating System (HOOS) 2020-21 No Implementation currently under
progress.
17 Tubing Rotator 2020-21 Yes N.A. 107
18 StimGun Propellant technology with 2020-21 Yes N.A.
TCP(Tubing Conveyed Perforation)
19 Managed Pressure Drilling (MPD) 2020-21 Yes N.A.

3. Expenditure incurred on Research & Development during FY 2020-21 is `5,541.30 million (previous year
`5,557.73 million).

4. Foreign exchange earnings and outgo (` in million)

Particulars FY’21 FY’20
Total Earnings 2,393.38 16,254.19
Total Expenditure 218,512.49 179,736.62
 THE UNSTOPPABLE
ENERGY SOLDIERS
Annexure-D

Annual Report on CSR activities for the financial year 2020-21

1. Brief outline on CSR Policy of the Company One of the major amendments brought in by
the Companies (CSR Policy) Amendment Rules,
Over the years, ONGC through its CSR Programs 2021 is the formulation of an Annual Action
has been reaching out to marginalized and Plan at the beginning of each Financial Year
deprived sections of its local communities to be recommended by the CSR Committee
and bridging developmental gaps primarily for approval by the Board of the Company.
in the thrust areas of Healthcare, Sanitation, Monitoring of CSR projects has now been
Education, Skill Development, Protection of emphasized with the timelines of an ongoing
National Heritage, Art and Culture, Disaster project limited to 3 years, excluding the year in
Management, Environmental Conservation and which it was approved. As per the amendment,
other focus areas specified under Section 135 all CSR Implementing Partners are required to be
read with Schedule VII of the Companies Act, registered on the MCA portal by filling the form
2013. The developmental activities initiated CSR-1 electronically. Impact Assessments for
by the Company have been consciously CSR projects having value of `1 Crore, or more,
directed towards betterment of the Human having completed not less than one year, are
Developmental Indices of the country, thereby also to be undertaken now through Independent
fulfilling the objectives of the United Nations Agencies.
Sustainable Development Goals.
The latest amendments have also now provided
The plethora of CSR projects and programs for setting-off of excess CSR expenditure of a
across the country have been undertaken in line Financial Year against the requirement to spend
with the ONGC Corporate Social Responsibility up to succeeding 3 Financial Years and also
and Sustainable Development (CSR & SD) provide for transfer of any unspent CSR amount
Policy approved by the Board of ONGC in its of a particular Financial Year to a fund specified
269th meeting held on 28.05.2015. in the Schedule VII of the Companies Act, 2013.
The CSR Policy with its long-term vision of In FY 2020-21, ONGC has specifically focused
supporting responsible and sustainable its efforts towards serving its communities
initiatives, while taking care of the concern by extending relief and support to tackle the
for People, Planet and Profit, provides broad outbreak of the COVID-19 pandemic. One of
guidelines for undertaking CSR activities within the major initiatives in this regard has been
the overall legal framework of CSR in the country.
108 the COVID-19 vaccination cold chain support
provided in remote locations of Gujarat,
Some major amendments have been brought
Nagaland, Uttarakhand and Tripura. In addition
about in the CSR Policy through the enactment
to this, 379 other projects were undertaken
of the Companies (CSR Policy) Amendment
across 18 states providing critical equipment,
Rules, 2021, published vide Gazette Notification
ventilators, PPE to hospitals and also food
dated 22.01.2021. The salient features of the
packets and groceries to the migrant labourers.
amendments have also been incorporated in
the ONGC Corporate Social Responsibility & In view of these initiatives to tackle the outbreak
Sustainability Policy, 2021. These also have of pandemic and other major developmental
been approved by the Board in its 335th meeting activities, the Company has spent CSR Funds
held on 30.03.2021.
 ANNUAL REPORT
2020-21
in excess of the requirement to spend in Financial Year 2020-21. The Board in its 336th meeting held on
23.04.2021 accorded approval towards set-off of `1,43.02 million, against the budget earmarked in respect
of CSR funds for the Financial Year 2021-22.

The CSR & Sustainability Policy has been hosted on the corporate website of ONGC i.e.
www.ongcindia.com.

2. Composition of CSR Committee

Sl. Name of the Director Designation / Nature Number of Number of

No. of Directorship meetings of CSR meetings of CSR
Committee held Committee attended
during the year during the year

1 Shri Amitava Bhattacharyya - Chairman Independent Director 2 2

2 Shri Subhash Kumar Director (Finance) 2 2

Annexures to Board’s Report

3 Dr. Alka Mittal Director (HR) 2 2

4 Shri R.K. Srivastava Director (Exploration) 2 2

109

ONGC marshalled all its resources to fight the pandemic as

part of its corporate social endeavours
 THE UNSTOPPABLE
ENERGY SOLDIERS
3. Provide the web-link where Composition well as end line impact assessment studies
of CSR Committee, CSR Policy and CSR through independent agencies. The details of
projects approved by the Board are disclosed the impact assessment studies of CSR projects
on the website of the Company: are annexed at Annexure-I.

• The composition of the CSR committee is 5. Details of the amount available for set off
available on our website, at https://www. in pursuance of sub-rule (3) of rule 7 of the
ongcindia.com/wps/wcm/connect/en/ Companies (Corporate Social responsibility
about-ongc/board-level-committees/ Policy) Rules, 2014 and amount required for
set off for the financial year, if any.
• The Committee, with the approval of
the Board, has adopted the CSR Policy Sl. Financial Amount available Amount required
as required under Section 135 of the No. Year for set-off from to be set-off for
Companies Act, 2013. The CSR Policy of preceding financial the financial
the Company is available on our website, years (in `) year, if any (in `)
at https://www.ongcindia.com
1. 2017-18 NIL NIL
• Details of CSR projects as approved by 2. 2018-19 NIL NIL
Board on the recommendation of the CSR
committee is available, at https://www. 3. 2019-20 NIL NIL
ongcindia.com/wps/wcm/connect/en/csr/
major-csrprojects/csr-details-2021 6. Average net profit of the company as per
section 135(5): `269,386.10 million.
4. Provide the details of Impact assessment of
CSR projects carried out in pursuance of sub- 7. (a) Two percent of average net profit
rule (3) of rule 8 of the Companies (Corporate of the company as per section 135(5):
Social responsibility Policy) Rules, 2014, if `5,387.72 million
applicable (attach the report). (b) Surplus arising out of the CSR projects or
The Company takes cognizance of sub-rule (3) programmes or activities of the previous
of Rule 8 of the Companies (Corporate Social financial years: NIL
Responsibility Policy) Amendment Rules, 2021 (c) Amount required to be set off for the
(“CSR Amendment Rules”). There are no projects financial year, if any: NIL
undertaken or completed after January 22, 2021,
in respect of which impact assessment report is (d) Total CSR obligation for the financial year
applicable in the FY 2021. Further, the Company (7a+7b-7c): `5,387.72 million
110 has been conducting voluntarily concurrent as

8. (a) CSR amount spent or unspent for the financial year:

Total Amount Spent Amount Unspent (` in Million)

for the Financial Year
(` in Million) Total Amount transferred to Amount transferred to any fund specified under
Unspent CSR Account as per Schedule VII as per second proviso to
Section 135(6) Section 135(5)
Amount Date of transfer Name of the Fund Amount Date of transfer
5,530.74 Nil Nil Nil Nil Nil
 ANNUAL REPORT
2020-21
(b) Details of CSR amount spent against 9. (a) Details of Unspent CSR amount for the
ongoing projects for the financial year: preceding three financial years: NIL
`595.26 million
(b) Details of CSR amount spent in the financial
The details of ongoing CSR projects of year for ongoing projects of the preceding
FY 2020-21 are placed at Annexure D(ii) financial year(s):
and D(iii).
The details of ongoing CSR projects of
(c) Details of CSR amount spent against other the preceding financial year(s) is placed at
than ongoing projects for the financial Annexure D(iii).
year: `4,719.32 million
10. In case of creation or acquisition of capital
The details of other than ongoing CSR projects asset, furnish the details relating to the asset so
is placed at Annexure D(iv). created or acquired through CSR spent in the
(d) Amount spent in Administrative Overheads: financial year (asset-wise details).: NIL
`211.45 million.
(a) Date of creation or acquisition of the capital

Annexures to Board’s Report

(e) Amount spent on Impact Assessment, if asset(s): NA
applicable: `4.71 million.
(b) Amount of CSR spent for creation or
(f) Total amount spent for the Financial Year acquisition of capital asset: NA
(8b+8c+8d+8e): `5,530.74 million.
(c) Details of the entity or public authority
(g) Excess amount for set off, if any: `143.02 or beneficiary under whose name such
million. capital asset is registered, their address
Sl. Particulars Amount etc.: NA
No. (` in million)
(d) Provide details of the capital asset(s)
(i) Two percent of average net profit of `5,387.72
the Company as per Section 135(5) created or acquired (including complete
(ii) Total amount spent for the Financial `5,530.74 address and location of the capital
Year asset): NA
(iii) Excess amount spent for the financial `143.02
year [(ii)-(i)] 11. Specify the reason(s), if the Company has failed
(iv) Surplus arising out of the CSR Nil to spend two per cent of the average net profit
projects or programmes or activities as per Section 135(5) of the Companies Act,
of the previous financial years, if any 2013: NA
(v) Amount available for set off in `143.02
succeeding financial years [(iii)-(iv)] 111

Sd/- Sd/-
(Subhash Kumar) (Amitava Bhattacharyya)
(Chairman & Managing Director) (Member, CSR Committee)

12.08.2021
New Delhi
 THE UNSTOPPABLE
ENERGY SOLDIERS
Annexure-D(i)

Highlights of impact assessments of CSR Projects

Sl Project Name
No.
1 Swargadeo Siu-Ka Pha Multi Specialty Hospital, Sivasagar
2 Financial Assistance to National Cancer Institute Nagpur (Phase-I)
3 Construction of the New ONGC MRPL Wing at Government Lady Goschen Hospital, Mangalore
4 Construction of Administrative Block and Student Dormitories at Ekalavya Centre for Organic
Agriculture Research & Training at Gingurti Village, Tandur Mandal, Vikarabad, Telangana
5 Installation of Bio-CNG cum Fertilizer with Bottling Unit at Naurangabad, Haridwar, Uttarakhand
6 Improvement of cleanliness and sanitation of Tirumala Tirupati Devasthanams (TTD), Tirumala

112

The Siu Ka Pha Multi-Speciality hospital with 300 beds being setup
by ONGC in Sibsagar, Assam is providing quality healthcare to the
people of Assam and India’s North East
 ANNUAL REPORT
2020-21

Project Title Swargadeo Siu-Ka Pha Multi Specialty Hospital, Sivasagar

Project Brief 300 bed Multi Speciality hospital being set up at Rajabari, Sivasagar in
three phases. The services of the first phase of the hospital with 67 beds
was inaugurated on 1st March 2019. The construction for the second phase
of the hospital is in advance stage, wherein 150 more beds will be included
with additional facilities. For the first time Dialysis facilities have been
started in Sivasagar at Swargadew Siu-Ka- Pha Multispecialty hospital.

Project Duration Two Years

Commencement of facility 1st Match 2019 (Services of Phase-I Hospital)

Project Cost `313 Cr (Phase-I: `99.07 Cr)

Impact Assessment Reach India Trust

Agency

Annexures to Board’s Report

Methodology Desk Review, Interviews, Observations, Case Study

Findings As per the main objective of the project the hospital has succeeded in
providing low-
cost treatment (at 70% of the market rate) and also able to address the
issue of bed deficit. Some of the highlights of the findings are as under:
• Patient Served: 35000 patients served since starting the hospital, out
of which 7000 were dialysis patients (Earlier there was no dialysis facility
available in Sivasagar and the patients had to travel to Dibrugarh for
availing the facilities.
• Covid Care: An emergency Covid ward was set up within 30 days
during the Covid 19 outbreak in 2020 and provided treatment to 100
patients.
• Feedback from Beneficiaries: Reviews and feedback were taken
from different sets of beneficiaries including patients admitted, patients
discharged, Covid affected patients, OPD patients and local population.
The details of feedback on three main parameters are as under:
a. 90% of the respondents said overall treatment in the hospital is
good and low cost 113
b. 82% of the responded said experience of appointment with doctors
are excellent.
c. 76% of the respondent felt that medical facilities and services are
good /excellent and another 24% felt it is fair.
• Employment Generation: Out of the total staff engaged in the hospital
51% are male and 49% are female. Only 4% employees are from
outside Assam and 96% are from local areas which reflects that apart
from providing affordable and quality treatment the hospital has also
contributed towards creating employment opportunity.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Additional observation:
• While looking at the feedback record of the hospital, it is found that
almost all patients were satisfied on the services provided by the
hospital.
• The hospital maintained some systematic operating protocol (SOP)
across all the departments and management, but there is scope for
integration.
• The most important observation is hospital authorities have maintained
proper care toward maintenance of hygiene and sanitation.
• Training on behavioural aspects of the staff toward the patients is taken
care by authority.
• Authority has kept more options and plans of action in advance for
further development of the hospital, considering more extensive
services both in quality and quantity.
Recommendations:
• Tie ups with Insurance company
• Increasing Ambulance number with Advance life support
• Increase awareness on the facilities available in the hospital for more
inflow of patients
• Skill development Centre for training of local youth
• Starting Blood sample collection centers outside the hospital in town
area
• Enhancing community engagement program

Project Title Financial Assistance to National Cancer Institute Nagpur (Phase-I)

Project Brief ONGC has extended part financial assistance of `100 Cr in Phase-I
towards construction of first, second floor and procurement of medical
equipment for radio diagnostic facilities (like MRI, CT scan, ultrasound,
mammography, x-ray and bone marrow density meter, etc.) for the
114 hospital. The total cost of the project is around `600 Cr. The National
Cancer Institute at Nagpur is 455 bed quaternary care oncology centre.
The centre is providing comprehensive cancer treatment, patient care
and research through sustainable charity. In addition to providing general
cancer care, the institute is also creating specialty groups of highly skilled
professionals. The Hospital is providing quality cancer care at much
cheaper rate compare to market rate in the region for the benefit of people
from Vidharbha region of Maharashtra, parts of Chhattisgarh, Madhya
Pradesh and Andhra Pradesh

Project Duration Two Years

 ANNUAL REPORT
2020-21

Commencement of facility Diagnostic facilities: August, 2017

Construction of 1st and 2nd floor completed in 2019

Project Cost `100 Cr

Impact Assessment Indian Institute of Management, Nagpur

Agency

Methodology Qualitative and quantitative research methods like sample survey and case
studies, analysis of primary and secondary data on Cancer Treatment in
Central India

Findings • NCI Nagpur has so far treated over 21,876 patients who have benefited
with 3,27,000 OPD treatments since September, 2017, the Institute’s
services provided at subsidized rates have resulted in substantial
savings in treatment costs to the tune of approximately `14.72 Crore.
• NCI, Nagpur has been offering quality cancer care at affordable costs

Annexures to Board’s Report

to patients from Central India with 78% of its patients hailing from
Maharashtra and 20% from Madhya Pradesh
• 44% of patients catered to are from OBC and SC/ST categories
• 22% of patients belong to BPL families from in and around Vidarbha
region and this percentage is much lower in similar hospitals indicating
that BPL category patients are being provided affordable healthcare at
NCI, Nagpur and 53% patients have annual income below `2.5 Lakhs
per annum
• 56% patients are being provided access to Government Schemes
through NCI Nagpur for their treatment and 48% patients have also
received donation from the NCI Nagpur’s Cancer Care Fund for
treatment
• NCI Nagpur also provides free bus service for patients which is
availed by 41% of the patients and majority belong to very low-income
households
• Free food and accommodation is provided to patients and 78% patients
are happy with the canteen service provided
• As compared to 34% patients reporting feeling emotionally better after 115
being treated in other hospitals, this figure is 44% for NCI, Nagpur as
patients are provided physiotherapy, occupational therapy and other
emotional support
• Over 90% patients liked NCI Nagpur’s Kark Sewa initiative, staff behavior
and Skilled medics
• 57% of patients from other hospitals indicated willingness to shift to NCI
Nagpur for treatment
 THE UNSTOPPABLE
ENERGY SOLDIERS

Project Title Construction of the New ONGC MRPL Wing at Government Lady
Goschen Hospital, Mangalore

Project Brief The support extended for creating exclusive facility for the women patients
and women from Karnataka & nearby states. As the Hospital is 162 years
old, the building has become very old and need for Construction of new
MRPL wing building was felt for additional infrastructure, considering the
poor and dilapidated condition of the existing building and also due to
sharp increase of both out and in patients and delivery cases (500 to 600
monthly). This hospital is made exclusively for women and all the BPL
women are benefitted through its healthcare activities.

Project Duration Four Years

Commencement of facility March, 2019

Project Cost `12.78 Cr

Impact Assessment Kasturba Medical College, Manipal University, Mangalore

Agency

Methodology Cross-sectional survey, Observational Study, document review and

In-depth Interview

Findings • This CSR initiative has fulfilled the long-standing needs of the people of
Dakshina Kannada District and also provides facilities at an increased
convenience to the women and children.
• Patients of both Ante Natal Care and Post Natal Care were highly
satisfied with the various infrastructure in the new wing of the hospital
• Patients of both Ante Natal Care and Post Natal Care were satisfied with
the services provided in the new wing of the hospital
• The staff and attendees at the hospital were satisfied with the
infrastructure provided in the new wing of the hospital
• Out of the general public surveyed, 96% were aware about the new
wing of LGH. 56% knew the MRPL has built this new wing. 3/4th of them
had utilized the healthcare services in the past and same proportion
116 are willing to utilize in future. Almost half of them mentioned that this
construction has impacted their business positively.
• The participants from public who were surveyed strongly agreed to
the fact that advanced healthcare services in LGH, aesthetic look, and
reduction in chaos in and around the hospital as compared to past.
• Patients, attenders, and general public are of view that the new building
has improved quality of care from hospital. According to health care
staff, the utilization of services and patient inflow has increased since
the building of new infrastructure
 ANNUAL REPORT
2020-21

• Staff of the hospital are motivated for work as the better infrastructure
provides quality atmosphere with respect to space, cleanliness,
circulation etc. According to the beneficiaries of hospital, the building
gives a happy feeling due to its wide space and clean infrastructure.
• According to all the responders, the utilization of services is optimum.
Moreover, even those who used to visit private hospital have started
utilizing LGH for maternal and child health services.
• The study opined that Maintenance fund and lack of human resources
are the two major threats anticipated by administrators. And canteen,
parking and water facilities may be improved.

Project Title Construction of Administrative Block and Student Dormitories at

Ekalavya Centre for Organic Agriculture Research & Training at
Gingurti Village, Tandur Mandal, Vikarabad, Telangana

Annexures to Board’s Report

Project Brief The financial assistance was extended towards construction of
Administrative Block and Student dormitories in remote area of Telangana
to promote organic farming through training and capacity building at Tandur
and Vikarabad Mandal of Telangana. The project is implemented in one of
the most backward mandal in the region inhabited by SCs and STs. It is
expected to benefit about 3500 farmers, 200 students and Consumers in
general by way of promoting organic farming. The trust owns 100 acre land
where farmers were trained with the involvement of agriculture department
and awarded two year diploma course which is recognised. The project
is immensely beneficial for increasing the scope of organic farming in
the entire Telangana and other neighbouring region and reducing carbon
footprint. This project helps the farmers and local youth to enhance their
livelihood by imparting them employment with enhancing vocation skills.

Project Duration Two years

Commencement of facility December, 2018

Project Cost `4.72 Cr

Impact Assessment Institute of Public Enterprises, Hyderabad

Agency 117
Methodology Focused group discussions, 10% beneficiaries sample survey using semi
structured questionnaire and telephonic discussion, Participative Method
and site survey, Case studies
 THE UNSTOPPABLE
ENERGY SOLDIERS

Findings • The administrative building and dormitory building have been

constructed in Gingurthi at Ekalavya Centre for Organic Research and
Training as per terms of MoA signed with ONGC
• In 2018-19, 210 farmers benefitted from the facilities and as on October,
2019, when this study was undertaken, 630 more farmers were trained
in this facility in 2019-20, 169 students were also enrolled for Diploma in
Organic Agriculture
• The overall satisfaction level of stakeholders with new facilities like
dormitory, academic building, library, computer lab and sanitation
facilities was found to be high
• Ekalavya Organic academic polytechnic is first ever kind in the state of
Telangana that promotes organic farming
• The project aims in promotion of organic farming, which is at par with
the government of India’s initiatives for farmers.
• Students of EOAP are not just trained in organic farming but also
introduced to self-sustainable practices such as dairy, nursery
maintenance, horticulture etc.
• The facility witnessed increase in student intake after infrastructure set
up with ONGC CSR support

Project Title Installation of Bio-CNG cum Fertilizer with Bottling Unit at Naurangabad,
Haridwar, Uttarakhand

Project Brief A unique initiative in Haridwar to convert cow dung to useful fuel and value
added products by setting up Bio-CNG cum Fertilizer & Bottling Plant at
Haridwar. The plant is being run by the largest Gaushala in Uttarakhand
and helping in maintaining clean hygienic waste management in the
Gaushala premises .It facilitates availability of clean environment to the
local population of Haridwar and also help in protecting the fauna i.e.
2200 non-milching cows at Gaushala by way of making the Gaushala
self-sustaining from the revenue generated from the project. The plant is
also producing organic solid and liquid fertilizers which will be distributed
among the local farmers thereby promoting organic farming.
118
Project Duration One Year

Commencement of facility December, 2018

Project Cost `1.88 Cr

Impact Assessment Indian Institute of Technology, Delhi

Agency

Methodology Technical evaluation of Plant and its workings based on scientific

parameters and measurements
 ANNUAL REPORT
2020-21

Findings • The overall performance of the BIO CNG plant is fine given demand for
the products in the market
• The project is sustainable in terms of operational issues and financial
investment and viability. The project is having high degree of replicability
depending upon the availability of feeding material.
• The project can be scaled up to any size, with establishment of multiple
reactors (one should not be more than 10000 cubic metre water holding
volume).
• Project is highly beneficial to farmers in promotion of organic farming in
country via utilization of bio-fertilizer produced from biogas plant.
• The present evaluation of the plant showed that the plant does not
operate on its full capacity to produce biogas and Bio-CNG. Thus,
necessary steps should be taken up to reduce the losses and improve
the performance of the overall establishment.
• The biogas and Bio-CNG plant established by M/s Atmospower Pvt.

Annexures to Board’s Report

Limited, Ahmedabad, Gujarat at Shri Krishnayan Gaushala, Haridwar,
Uttrakhand have scope for improvement in the performance of biogas
production plant and in performance of MPSA based Bio-CNG
production system.
• The present evaluation of the plant showed that the demand of
Bio-CNG from the unit is at present less than expected and therefore
plant is operating in lower capacity but the possibility of increasing
production when the demand rises exists
• It is also suggested to improve efficiency of the Bio-CNG production
process and minimise methane loss in the plant to improve economy.
• As per the DPR of the project, MPSA based 100 m3/h capacity biogas
purification system was installed for purification of biogas to a level of
methane content of 95% (v/v) in the upgraded biogas. The installed
system has been claimed to produce 550 m3 of Bio-CNG (420 kg) on
daily basis processing 1000 m3 of biogas.
• Currently, “Shri Krishnayan Gaushala” is selling bottled Bio-CNG to an
industry “Hans Herbal Pvt. Ltd., Haridwar, Uttarakhand” at the rate of
INR 54.25/kg for thermal heating application.
• The Gaushala sells manure both in liquid and solid forms and they have
also developed a liquid Bio-Manure product to promote growth of the 119
crops.
• Sample of the developed product has been tested in the renowned
universities and laboratories, and result of manorial values were found
satisfactory.
• The performance analysis of biogas plant shows that the digester was
being fed with 6.1 tonnes of cow dung on daily basis (30.5% of the
required designed value) instead of 20.0 tonnes/day. As per general
understanding of the situation of demand of Bio-CNG near to this place
is low, the parameters can be improved if it is operated on optimal
conditions. This was also suggested to the operator of the plant.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Project Title Improvement of cleanliness and sanitation of Tirumala Tirupati

Devasthanams (TTD), Tirumala

Project Brief The project is for improving the cleanliness and sanitation at Tirumala. The
project includes recycling of sewage water, LED lighting system for energy
conservation, purchase of cleaning machinery equipment to ensure the
township is clean and serene, purchase of electric vehicles to reduce air
pollution and to conserve fuel and setting up of solid waste management
to dispose of garbage in most scientific method.

Project Duration Two Years

Commencement of facility October, 2019

Project Cost `10.21 Cr

Impact Assessment Madras School of Social Work, Chennai

Agency

Methodology Key informants Interview, Field visits, Transect Walk, Focused Group
Discussion, Field inspection reports and Case Studies

Findings Laying of Pipeline for use of recycled water:

• TTD has completed the laying of pipeline work with the allocation of
`1.52 crores from ONGC
• Gardens and plants are maintained for a distance of 3.5 kms through
drip irrigation by the Forest Department.
• The recycled water is being utilised for gardens, medicinal plants, and
saplings in nurseries and parks in Tirumala as well as parks located on
either side of the footpath from Tirumala Toll Plaza to Alipiri Toll Plaza in
Tirupati through 150 mm dia D.I. pipeline.
• The consultants observed that the greenery and blossom of flowers
on both sides of Alipiri foothill due to intervention of ONGC CSR
interventions has been created and the environment is pleasant with
greenery with flora and fauna.
Remote Monitoring System of LED Lighting System (SCADA) for
120 Energy Conservation:
• This is a focal point for recording the energy consumption. The other
important function of the SCADA is centralised operation of switch on
and off of all the LED Lights at Tirumala and this facility has reduced the
exclusive human resource to operate this system.
• Important function of SCADA facilitates is in locating the lights /power
line when fault occurs. This will be displayed in dash board and thus
help, Energy Department personnel to immediately rectify the problem
and ensure uninterrupted power supply to the entire Tirumala
• One of the positive aspects of SCADA is prevention of wastage in
electricity occur due to wire leakages, theft and replacement of bulbs,
faulty meters etc.
 ANNUAL REPORT
2020-21

• Due to effective SCADA operating system in Tirumala, annual energy

audit by the Electrical Department of Andhra Pradesh has yielded
positive results and savings on energy consumption
Cleaning Machinery Equipment to ensure the township clean and serene:
• Machinery and equipment under the project,“cleaning machinery
equipment to ensure the township clean and serene” were purchased
by the TTD Mechanical Department and handed over to Health
Department for operation and maintenance
• 4 dining halls with the seating capacity of 2000 in each of 4 floors are
cleaned by the personnel using two Automatic Scrubber Drier E.4545
purchased from ONGC CSR funds for each floor.
• The machine keeps the floor clean and tidy without flies in the vicinity.
The machine wipes the entire floor without any dust or particles, thus
saving o time and manpower. It was calculated that the automatic
scrubber drier does the cleaning in 40 minutes compared to 2 hours

Annexures to Board’s Report

through manual labour.
• Prior to ONGC CSR interventions, solid waste was a challenge to the
department, since bounds of waste was generated due to stream of
floating population thronging to Tirumala throughout 365 days. Provision
of cleaning equipment has been helpful in tackling the challenge of
sanitation issues.
Purchase of Buses & Battery-operated Vehicles:
• Battery operated car donated by ONGC is being utilised for shuttling
sick inmates between home and clinic.
Renovation of existing Solid Waste Management Plant:
• Works under Solid Waste Management system have been completed
• Efforts are being made to market the manure produced in the yard. At
present, the manure is sold at `4800/- per MT with 4% increased price
each year by M/s Bright Waste Technologies, an outsourcing agency
for solid waste management to TTD, which in turn making efforts to sell
through e-auction
• around 30 MT of bio-degradable waste generated from Tirumala is
being brought to the SWM site and converted into organic manure. 121
• One of the processes of SWM is segregation of waste into degradable
and bio-degradable. The degradable waste is processed and kept for
an incubation period of 40 days for composting. Organic manure is
used by TTD as manure for their gardens and plants maintained at
Tirumala and ghat roads.
• It was observed that all the SWM staff were provided with protective
aids like gloves, shoes and other cleaning appliances.
• At present, daily 30 MT of bio-degradable waste is being generated and
the same is sent to kakulamma thippa, a SWM plant.
 122
Annexure-D(ii-iii)

ENERGY SOLDIERS
THE UNSTOPPABLE
8 (b) Details of CSR amount spent against ongoing projects for the financial year

Sl Name of the CSR Project Item from the List of Local Area Location of the CSR Project Amt allocat- Amount Mode of Implementation- Through
No. activities in Schedule VII (Yes/No) Project duration ed for the spent on the Implementing Agency
in Years project (in ` project in
State District Name CSR Reg No.
million) the current
Financial
Year ( in `
million)
1 Contribution to PCRA (iv) Environmental Yes Delhi PAN India 1 35.00 10.00 ONGC Foundation CSR00000594
towards Contribution for sustainability
Oil & Gas Conservation
drive - Mega Campaign
during 2021 through ONGC
Foundation
2 ONGC Super 30 Srinagar (ii) Promoting education No Jammu & Srinagar 1 8.20 3.28 Centre for Social
2020-21 Kashmir Responsibility &
Leadership (CSRL)
3 ONGC Super 30 project at (ii) Promoting education Yes Assam Sivasagar 1 8.50 3.38 Centre for Social
Sivasagar Assam for the Responsibility &
session 2020-21 Leadership (CSRL)
4 Project Green Hub 2021 (ii) Employment Yes Assam Sonitpur 1 1.90 0.39 North East Network
for training of youth in enhancing vocation
wildlife documentation and skills
videography
5 Setting up of 100 kWp (iv) Environmental sustain- Yes Delhi South 1 9.80 8.81 ISKCON Delhi CSR00000594
Solar Plant at ISKCON ability Delhi
premises, East of Kailash,
New Delhi
6 Dairy Farming project in (ii) Promoting education, No Haryana Nuh 1 2.00 0.80 Bisnouli Sarvodaya
Nuh District, Haryana including special Gramoudyog Sewa
education and Sansthan
employment
enhancing vocation
skills and livelihood
enhancement projects
Total 26.67
 Annexure-D(iv)
8 (c) Details of CSR amount spent against other than ongoing projects for the Financial Year
Sl Name of the CSR Project Item from the Local Area Location of the CSR Project Amount Mode of Im- Mode of Implementation-
No. List of activities (Yes/No) spent in the plementation ThroughImplementing Agency
in Schedule VII FY 2020-21 direct
State District Name CSR Reg No.
(in million) (Yes/ No)
1 Contribution towards PM Contribution Yes Delhi PAN India 3000.00 No PM CARES
CARES Fund towards to PM CARES
COVID19 FUND
2 Financial support to KV Promoting Yes Uttarakhand Dehradun 81.09 No Kendriya Vidyalaya, N/A
Dehradun education Dehradun
3 Financial support to KV Promoting Yes Maharashtra Panvel 79.90 No Kendriya Vidyalaya _
Panvel education ONGC
4 Financial support to KV Promoting Yes Gujarat Ahmedabad 42.30 No Kendriya Vidyalaya
Ahmedabad education ONGC
5 Financial assistance Promoting pre- Yes Gujarat, Nagaland, Districts of Gujarat, 37.99 No ONGC Foundation CSR00000594
towards cold chain logistic ventive health- Tripura and Nagaland, Tripura
support for Covid-19 care Uttarakhand and Uttarakhand
vaccination program
6 Financial Support to KV Promoting Yes Assam Sivasagar 45.31 No Kendriya Vidyalaya
Sivasagar education ONGC
7 Financial Support to KV Promoting Yes Gujarat Mehsana 33.60 No KV Mehsana
Mehsana education
8 Financial Support to KV Promoting Yes Gujarat Surat 31.87 No Kendriya Vidyalaya
Surat education ONGC Nagar-3,
Surat
9 Financial Support to KV Promoting Yes Tripura West Tripura 31.68 No Kendriya Vidyalaya
Agartala education ONGC
10 Financial Support to KV Promoting Yes Gujarat Bharuch 31.40 No KV Ankleshwar
Ankleshwar education
11 Financial Support to KV Promoting Yes Gujarat Vadodara 30.86 No Kendriya Vidyalaya
Baroda education ONGC Baroda
12 Financial Support to KV Promoting Yes Assam Silchar 29.26 No KV Silchar
Silchar education

ANNUAL REPORT
13 Financial Support to KV Promoting Yes Andhra Pradesh East Godavari 28.79 No Kendriya Vidyalaya
Rajahmundry education School Fund
14 Financial Support to KV Promoting Yes Assam Jorhat 22.10 No Kendriya Vidyalaya
Jorhat education School Fund

2020-21
123

Annexures to Board’s Report

 124
Sl Name of the CSR Project Item from the Local Area Location of the CSR Project Amount Mode of Im- Mode of Implementation-

ENERGY SOLDIERS
THE UNSTOPPABLE
No. List of activities (Yes/No) spent in the plementation ThroughImplementing Agency
in Schedule VII FY 2020-21 direct
State District Name CSR Reg No.
(in million) (Yes/ No)
15 Promotion of Samskrit Promoting Yes Delhi PAN India 20.00 No Samskrit Promotion
(Sanskrit) through Training, education Foundation
Technology and Research
(Phase-III)
16 Construction of G+4 Promoting pre- Yes Odisha Cuttack 16.22 No Utkal Bipanna
storied building for Susruta ventive health- Sahayata Samiti
Swasthya Sahayata Kendra care
at Olatpur in Cuttack District
of Odisha
17 Financial Support to KV Promoting Yes Gujarat Anand 15.89 No ONGC KV Cambay
Cambay education
18 Civil and Electrical Works Promoting Yes Assam Sivasagar 7.49 No M/s
( Phase -3 ) executed education Brahmaputra
through M/s Brahmaputra Commerce & Trade,
Commerce & Trade, Sivasagar
Sivasagar. (Through Civil
Section, Nazira )
19 Construction of 8 additional Promoting Yes Gujarat Anand 5.70 Yes ONGC
classrooms for ONGC education
Gujarati Primary School
Cambay
20 Reconstrution of Lilapur Promoting Yes Gujarat Ahmedabad 5.56 No R&B Pamchayat
Primary School education Division,
Ahmedabad
21 Financial Support towards Ensuring Yes Maharashtra Mumbai 5.49 No Ravindra Joshi
operational expenditure for environmental Medical Foundation
Bandra Promenade Mumbai sustainability
22 Financial Assistance to Training to Yes Delhi South Delhi 5.00 No Boxing Federation
Boxing Federation of India promote Olympic of India
for Big Bout League sports
23 CSR Projects (1830 nos) Schedule VII of Yes Operational Area Local 1111.82 No Various Agencies
below 50 lacs the Companies including the states
Act of Operations
4719.32
The project wise details have been uploaded on ONGC website i.e.https://www.ongcindia.com/wps/wcm/connect/en/csr/major-csrprojects/
 Annexure-D(v)
9 (b) Details of CSR amount spent in the Financial Year for Ongoing Projects of the preceding Financial Year

Sl Name of the project Financial Year in Project Total amount Amount spent on Cumulative Status
no. which the project was duration allocated for the the project in the Expenditure at
of commenced project (in `) reporting Financial end of Reporting
Year (in ` million) FY 20-21

1 Sivasagar Multispeciality Hospital (Phase-II ) 2019-20 2 1487.40 197.90 730.20 Ongoing

2 Financial Assistance to NCI Nagpur (Phase-II) 2019-20 2 403.60 242.15 363.20 Ongoing

3 Construction of CHE&SS(Vivek Tirtha) Kolkata 2019-20 2 127.70 44.68 121.30 Ongoing

4 Setting up of Sports Complex at Dharwad 2017-18 4 136.80 41.05 123.30 Ongoing

5 Setting up of Tribal Girls Hostel at Kandhamal, Odisha 2018-19 3 37.20 11.15 33.50 Ongoing

6 Improved Crop Residue Management Haryana 2019-20 2 4.80 2.00 4.00 Ongoing

7 Façade Improvement works at Gangotri Dham 2019-20 2.5 4.80 2.41 2.40 Ongoing

8 Providing vehicle for waste Management at Thano 2019-20 1 1.10 0.76 0.76 Ongoing
and Dhanualti, Uttarakhand

9 Empowering local youth of Kaziranga to raise 2019-20 2 1.98 1.19 1.19 Ongoing
awareness for conservation of Rhinos

10 Financial assistance for development of low cost 2019-20 2 2.48 0.50 1.98 Ongoing
cardiovascular diagnostics for rural healthcare.

11 Financial support towards the project: “Support and 2019-20 2 0.70 0.28 0.56 Ongoing
Rehabilitation of people with Parkinson’s Disease and
their caregivers and promote healthy ageing

12 Financial assistance for construction of sub-centre 2018-19 3 2.00 1.40 1.80 Ongoing
with prefabricated steel structure and brick work

ANNUAL REPORT
foundation at gutguti, Hailakandi

13 Financial assistance for construction of CHO Quarter 2018-19 3 1.60 1.12 1.44 Ongoing
at Gutguti sub centre in Hailakandi

2020-21
125

Annexures to Board’s Report

 126
Sl Name of the project Financial Year in Project Total amount Amount spent on Cumulative Status

ENERGY SOLDIERS
THE UNSTOPPABLE
no. which the project was duration allocated for the the project in the Expenditure at
of commenced project (in `) reporting Financial end of Reporting
Year (in ` million) FY 20-21

14 Financial assistance for construction of sub-centre 2018-19 3 2.00 1.40 1.80 Ongoing
with prefabricated steel structure and brick work
foundation at kundanala, Hailakandi

15 Financial assistance for construction of CHO Quarter 2018-19 3 1.90 1.33 1.70 Ongoing
at Damcherra Sub centre, Hailakandi

16 Financial assistance for construction of CHO Quarter 2018-19 3 1.60 1.12 1.44 Ongoing
at Kundanala Sub Centre in Hailakandi

17 Construction of 20 girls toilets in elementary and high 2019-20 2 2.00 0.70 1.70 Ongoing
schools in Hailakandi district, Assam

18 Financial assistance towards infrastructure 2019-20 2 2.00 1.00 1.00 Ongoing

development of Gharmura (Monipur) NPHC,
Hailakandi, Assam in order to meet IPHS norms

19 Construction of 7 toilet blocks (4 seated) at 7 2019-20 2 1.98 0.79 1.78 Ongoing

Government Schools of Nuapada (Aspirational
District), Odisha

20 Construction of additional classrooms at Kulekela 2019-20 2 1.37 0.55 1.23 Ongoing

U.G.U.P.S and Jayabahal P.S., Nuapada, Odisha

21 Construction of additional classrooms at Katfar Proj 2019-20 2 1.37 0.55 1.23 Ongoing
U.P.S and Lesunpali Proj UPS, Nuapada, Odisha

22 Construction of additional classrooms at RPC Boden 2019-20 2 1.37 0.55 1.23 Ongoing
P.S and Khirmal P.S, Larka, Boden, Nuapada, Odisha

23 Construction of 2 additional classrooms at 2019-20 2 1.37 0.55 1.23 Ongoing

Budhapada UGUPS, Palsada, Boden, Nuapada,
Odisha

24 Improvement of 13 Anganwadis at 8 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Nuapada, Odisha
 Sl Name of the project Financial Year in Project Total amount Amount spent on Cumulative Status
no. which the project was duration allocated for the the project in the Expenditure at
of commenced project (in `) reporting Financial end of Reporting
Year (in ` million) FY 20-21

25 Improvement of 13 Anganwadis at 9 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Nuapada, Odisha

26 Improvement of 13 Anganwadis at 9 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Komna, Nuapada, Odisha

27 Improvement of 13 Anganwadis at 11 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Nuapada, Odisha

28 Improvement of 13 Anganwadis at 9 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Khariar, Nuapada, Odisha

29 Improvement of 13 Anganwadis at 10 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Nuapada, Odisha

30 Improvement of 13 Anganwadis at 10 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Boden, Nuapada, Odisha

31 Improvement of 13 Anganwadis at 9 locations of 2019-20 2 1.89 0.75 1.70 Ongoing

Boden and Sinapali, Nuapada, Odisha

32 Improvement of 13 Anganwadis at 9 villages of 2019-20 2 1.89 0.75 1.70 Ongoing

Sinapali, Nuapada, Odisha

33 Improvement of 8 Anganwadis at 8 villages of 2019-20 2 1.16 0.46 1.04 Ongoing

Sinapali, Nuapada, Odisha

34 Construction of 5 three seater toilet blocks at 5 2019-20 2 1.98 0.79 1.78 Ongoing
Government Schools of Nuapada and one 3 seater
and two 4 seater toilet blocks at 1 Government
School of Nuapada (Aspirational District), Odisha

ANNUAL REPORT
35 Construction of 3 four seater toilet blocks at 3 2019-20 2 1.89 0.75 1.70 Ongoing
Government Schools of Nuapada and one 3 seater
and 4 seater toilet blocks each at 2 Government
School of Nuapada (Aspirational District), Odisha

2020-21
127

Annexures to Board’s Report

 128
Sl Name of the project Financial Year in Project Total amount Amount spent on Cumulative Status

ENERGY SOLDIERS
THE UNSTOPPABLE
no. which the project was duration allocated for the the project in the Expenditure at
of commenced project (in `) reporting Financial end of Reporting
Year (in ` million) FY 20-21

36 Construction of 8 three seater toilet blocks at 6 2019-20 2 1.88 0.75 1.69 Ongoing
Government Schools of Nuapada (Aspirational
District), Odisha

37 Construction of 10 two seater toilet blocks at 10 2019-20 2 1.96 0.79 1.77 Ongoing
Government Schools and 1 four seater toilet block
at 1 Government School of Nuapada (Aspirational
District), Odisha

38 Construction of an additional classroom in Khairbhadi 2019-20 2 1.37 0.55 1.23 Ongoing

Proj U.P.S School, Babedir and Patdarha (Basti) Proj
U.P.S School, Patdarha of Boden Block, Nuapada
(Aspirational District), Odisha

39 Construction of 2 additional classrooms at Khaira 2019-20 2 1.37 0.55 1.23 Ongoing

Nodal U.P.S SchoolKhaira, Boden, Nuapada
(Aspirational District), Odisha

40 Construction of additional classrooms at Rokal 2019-20 2 1.37 0.55 1.23 Ongoing

UGUPS, Rokal, Boden and Runibasa P.S., Rokal,
Boden, Nuapada, Odisha

41 Construction of 2 additional classrooms at 2019-20 2 1.37 0.55 1.23 Ongoing

Budhipadar U.G.U.PS., Farsara, Boden Nuapada,
Odisha

42 Construction of School Toilets in Nawada, 2019-20 2 1.87 0.94 1.10 Ongoing

2262.30 568.59
 ANNUAL REPORT
2020-21
Annexure-E

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 2021.

The preparation of financial statements of Oil to the working papers of the statutory auditors and is
and Natural Gas Corporation Limited for the year limited primarily to inquiries of the statutory auditors
ended 31 March 2021 in accordance with the and company personnel and a selective examination
financial reporting framework prescribed under the of some of the accounting records.
Companies Act, 2013 is the responsibility of the
On the basis of my supplementary audit nothing
management of the company. The statutory auditors
significant has come to my knowledge which would
appointed by the Comptroller and Auditor General of
give rise to any comment upon or supplement to
India under section 139 (5) of the Act are responsible
statutory auditors’ report under section 143(6)(b) of
for expressing opinion on the financial statements
the Act.
under section 143 of the Act based on independent
audit in accordance with the standards on auditing For and on behalf of the

Comments of C&AG
prescribed under section 143(10) of the Act. This is Comptroller & Auditor General of India
stated to have been done by them vide their Audit
Report dated 24 June 2021.
Sd/-
I, on behalf of the Comptroller and Auditor General of C. M. Sane
India, have conducted a supplementary audit of the Director General of Commercial Audit, Mumbai
financial statements of Oil and Natural Gas Corporation
Limited for the year ended 31 March 2021 under Place: Mumbai
section 143(6)(a) of the Act. This supplementary audit Date: 24 August, 2021
has been carried out independently without access

129

ONGC believes in inclusive growth, with equal opportunities

available to every employee
 THE UNSTOPPABLE
ENERGY SOLDIERS
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 2021

The preparation of consolidated financial statements entities incorporated in Foreign countries under the
of Oil and Natural Gas Corporation Limited for the respective laws, for appointment of their Statutory
year ended 31 March 2021 in accordance with the Auditor and for conduct of supplementary audit.
financial reporting framework prescribed under the Accordingly, Comptroller and Auditor General of
Companies Act, 2013 is the responsibility of the India has neither appointed the Statutory Auditors
management of the company. The statutory auditors nor conducted the supplementary audit of these
appointed by the Comptroller and Auditor General companies. This supplementary audit has been
of India under section 139 (5) read with section 129 carried out independently without access to the
(4) of the Act are responsible for expressing opinion working papers of the statutory auditors and is limited
on the financial statements under section 143 read primarily to inquiries of the statutory auditors and
with section 129 (4) of the Act based on independent company personnel and a selective examination of
audit in accordance with the standards on auditing some of the accounting records.
prescribed under section 143(10) of the Act. This is
On the basis of my supplementary audit nothing
stated to have been done by them vide their Audit
significant has come to my knowledge which would
Report dated 24 June 2021.
give rise to any comment upon or supplement to
I, on behalf of the Comptroller and Auditor General of statutory auditors’ report under section 143(6)(b) of
India, have conducted a supplementary audit of the the Act.
consolidated financial statements of Oil and Natural
Gas Corporation Limited for the year ended 31
March 2021 under section 143(6)(a) read with section For and on behalf of the
129(4) of the Act. We conducted the supplementary Comptroller & Auditor General of India
audit of the financial statements of subsidiary/ joint
venture/ associate company (Annexure-I) but did
not conduct supplementary audit of the financial Sd/-
statements of subsidiary/ joint venture/ associate C. M. Sane
company (Annexure-II) for the year ended on that Director General of Commercial Audit, Mumbai
date. Further, section 139(5) and 143 (6) (b) of the Place: Mumbai
Act are not applicable to subsidiary/ joint venture/ Date: 24 August, 2021
associate company (Annexure-III) being private
130
 ANNUAL REPORT
2020-21
Annexure I Audit Conducted 4. ONGC Narmada Limited
Subsidiaries 5. ONGC Amazon Alaknanda Limited
6. Imperial Energy Limited
1 Mangalore Refinery and Petrochemicals Limited 7. Imperial Energy Tomsk Limited
2 ONGC Mangalore Petrochemicals Limited 8. Imperial Energy (Cyprus) Limited
3 Hindustan Petroleum Corporation Limited 9. Imperial Energy Nord Limited
4 ONGC Videsh Limited 10. Biancus Holdings Limited
5 Petronet MHB Limited 11. Redcliff Holdings Limited
6 HPCL Biofuels Limited 12. Imperial Frac Services (Cyprus) Limited
7 ONGC Videsh Rovuma Ltd. (India) (Audit in 13. San Agio Investments Limited
Progress) 14. LLC Sibinterneft
15. LLC Allianceneftegaz
Joint Venture Entities
16. LLC Nord Imperial
1 ONGC Petro additions Limited (Audit in Progress) 17. LLC Rus Imperial Group
2 HPCL Rajasthan Refinery Limited 18. LLC Imperial Frac Services
3 Bhagyanagar Gas Limited 19. Carabobo One AB
4 Mumbai Aviation Fuel Farming Facility Private 20. Petro Carabobo Ganga B.V.
Limited 21. ONGC (BTC) Limited
5 HPOIL Gas Private Limited 22. Beas Rovuma Energy Mozambique Limited

Comments of C&AG
6 IHB Private Limited 23. ONGC Videsh Rovuma Ltd. (Mauritius) (Wound up
during the year)
7 Indradhanush Gas Grid Limited
24. ONGC Videsh Atlantic Inc.
Associates 25. ONGC Videsh Singapore Pte. Ltd
26. ONGC Videsh Vankorneft Pte. Ltd
1 GSPL India Gasnet Limited
27. Indus East Mediterranean Exploration Limited
2 GSPL India Transco Limited 28. HPCL Middle East FZCO
3 Pawan Hans Limited (audit in progress)
Joint Venture Entities
Annexure II Audit not conducted 1. ONGC Mittal Energy Limited
Subsidiaries 2. Mangalore SEZ Limited
3. ONGC Tripura Power Company Limited
1 Prize Petroleum Company Limited 4. ONGC Teri Biotech Limited
2 HPCL Shapoorji Energy Private Limited 5. HPCL Mittal Energy Limited
Joint Venture Entities 6. Shell MRPL Aviation Fuels & Services Limited
7. Mansarovar Energy Colombia Limited
1 Dahej SEZ Limited 8. Himalaya Energy Syria BV
2 Godavari Gas Private Limited 9. SUDD Petroleum Operating Company
3 Aavantika Gas Limited (Non-review certificate 10. Hindustan Colas Private Limited
issued) 11. South Asia LPG Co. Private Limited
131
4 Ratnagiri Refinery Petrochemicals Limited (Non-
Associates
review certificate issued)
Associates 1 Tamba B.V.
2 Petro Carabobo S.A.
1 Rohini Heliport Limited 3 Carabobo Ingenieria Y Construcciones S.A.
4 Petrolera Indovenezolana S.A.
Annexure III Audit not applicable 5 South-East Asia Gas Pipeline Company Limited
Subsidiaries 6 JSC Vankorneft
7 Falcon Oil & Gas B.V.
1. ONGC Nile Ganga B.V. 8 Petronet LNG Limited
2. ONGC Campos Limited 9 Moz LNG I Holding Company Limited
3. ONGC Nile Ganga (San Cristobal) B.V.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Annexure-F
Form No. MR-3

Secretarial Audit Report

For the financial year ended 31st March, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 as amended]

To (iii) The Depositories Act, 1996 and the Regulations

The Members, and bye-laws framed there under;
OIL AND NATURAL GAS CORPORATION LIMITED,
(iv) Foreign Exchange Management Act, 1999 and
(CIN: L74899DL1993GOI054155)
the rules and regulations made there under to the
Regd. Office: Plot No. 5A- 5B, Nelson Mandela Road,
Vasant Kunj, New Delhi -110070 extent of Foreign Direct Investment, Overseas
Direct Investment and External Commercial
We have conducted the Secretarial Audit of the Borrowings;
compliance of applicable statutory provisions and
the adherence to good corporate practices by OIL (v) The following Regulations and Guidelines
AND NATURAL GAS CORPORATION LIMITED prescribed under the Securities and Exchange
(hereinafter called “the Company”). Secretarial Board of India Act, 1992 (‘SEBI Act’)
Audit was conducted in a manner that provided us (a) The Securities and Exchange Board of
a reasonable basis for evaluating the corporate India (Substantial Acquisition of Shares
conducts/ statutory compliances and expressing our and Takeover) Regulations, 2011;
opinion thereon.
(b) The Securities and Exchange Board
Based on our verification of the Company’s books, of India (Prohibition of Insider Trading)
papers, minute books, forms and returns filed and Regulations, 2015;
other records maintained by the Company and also
(c) The Securities and Exchange Board of
the information provided by the Company, its officers,
India (Issue of Capital and Disclosure
agents and authorized representatives during the
Requirements) Regulations, 2018; (Not
conduct of Secretarial Audit, we hereby report that in
applicable to the Company during the
our opinion, the Company has, during the audit period
audit period)
covering the Financial year ended on 31st March,
2021 complied with the statutory provisions listed (d) The Securities and Exchange Board of
hereunder and also that the Company has proper India (Employee Stock Option Scheme
132 Board-processes and compliance-mechanism in and Employee Stock Purchase Scheme)
place to the extent, in the manner and subject to the Guidelines,1999 and The Securities and
reporting made hereinafter. Exchange Board of India (Share Based
Employee Benefits) Regulations, 2014;
We have examined the books, papers, minute books,
(Not applicable to the Company during the
forms and returns filed and other records maintained
audit period)
by the Company for the financial year ended on
31st March, 2021 according to the provisions of: (e) The Securities and Exchange Board of
India (Issue and Listing of Debt Securities)
(i) The Companies Act, 2013 (‘the Act’) and the
Regulations, 2008;
rules made there under;
(f) The Securities and Exchange Board of
(ii) The Securities Contracts (Regulation) Act, 1956
India (Registrars to an Issue and Share
(‘SCRA’) and the rules made there under;
Transfer Agents) Regulations, 1993;
 ANNUAL REPORT
2020-21
(g) The Securities and Exchange Board of India (ii) The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, (Listing Obligations & Disclosure Requirement)
2009; (Not applicable to the Company Regulations, 2015 (“SEBI (LODR), Regulations
during the audit period) 2015”).
(h) The Securities and Exchange Board of During the audit period, the Company has
India (Buyback of Securities) Regulations, complied with the provisions of the Act,
2018; (Not applicable to the Company Rules, Regulations, Guidelines, Standards
during the audit period) etc. mentioned above except to the extent as
mentioned below:
(i) The Securities and Exchange Board of
India (Depositories and Participants) (a) Board composition & Evaluation: During the
Regulations, 2018. audit period there were non-compliances
with the requirements of Regulation 17(1)
(vi) I further report that, having regards to the
(a) & (b) of SEBI (LODR) Regulations, 2015,
compliance system prevailing in the Company
Section 149 of the Companies Act, 2013
and on examination of the relevant documents
and Para 3.1.4 of Department of Public
and records in pursuance thereof on test-
Enterprises (DPE) Guidelines on Corporate
check basis, the Company has complied with
Governance 2010, , as the Company did

Secretarial Audit Report

the following laws applicable specifically to the
not have requisite number of Independent
Company:
Directors on its Board, including no
(a) DPE Guidelines on Corporate Governance independent Woman Director during the
for Central Public Sector Enterprises, 2010; period from 08th September, 2020 to 31st
(b) The Petroleum Act, 1934; March 2021. Further, in terms of Regulations
17(10) and 25 (3) & (4) of the SEBI (LODR),
(c) The Mines Act, 1952; Regulations 2015 - Performance Evaluation
(d) The Oil Industry (Development) Act, 1974; of Independent Directors by the Board and
review of performance of non- independent
(e) The Petroleum and Natural Gas Regulatory directors, the Chairperson and the Board
Board Act, 2006; of Directors as a whole by the Independent
(f) The Explosive Act, 1884; Directors were not carried out, further
as required the meeting of Independent
(g) The Oil Fields (Regulations and
Directors was not convened.
Development) Act, 1948;
(b) Audit Committee and Nomination &
(h) The Petroleum and Mineral Pipelines
Remuneration Committee: The composition
(Acquisition of Right of User in land Act),
of the Audit Committee and the Nomination
1962;
& Remuneration Committee was not in
(i) The Offshore Areas Minerals (Development compliance of Regulations 18 and 19 of
133
and Regulation) Act, 2002; the SEBI (LODR), Regulations 2015 w.e.f.
08th September, 2020. In the absence
(j) The Mines and Minerals (Development and
of valid quorum, no meeting of the Audit
Regulation) Act ,1957; and
Committee was convened after 31st August,
(k) The Merchant Shipping Act, 1958. 2020 consequently mandatory functions of
Audit Committee such as review of quarterly
We have also examined compliance with the
results / annual financial statements and
applicable clauses of the following:
approval of related party transactions etc.
(i) Secretarial Standards issued by the Institute of were directly reviewed and approved by the
Company Secretaries of India with respect to Board.
Board, Committee(s) and General Meeting(s).
 THE UNSTOPPABLE
ENERGY SOLDIERS
We further report that up, on Private Placement Basis, amounting to
`500,00,00,000/- (Rupees Five Hundred Crore
The Board of Directors of the Company is constituted
Only).
with proper balance of Executive Directors, Non-
Executive Directors and Independent Directors except 2. The Company has issued 10,000 unsecured,
for the reporting made hereinabove. The changes in listed, redeemable, non-cumulative, taxable,
the composition of the Board of Directors that took non-convertible Debentures (6.40% ONGC
place during the audit period were carried out in 2031 Series II) of the value of `10,00,000/-
compliance with the provisions of the Act. (Rupees Ten Lac only) each for cash at par fully
paid up, on Private Placement Basis, amounting
Adequate notice was given to all directors to
to `1000,00,00,000/- (Rupees One Thousand
schedule the Board meetings at least seven days in
Crore Only).
advance generally, agendas were sent in advance
and a system exists for seeking and obtaining further 3. The Company has issued 11,400 unsecured,
information and clarifications on the agenda items listed, redeemable, non-cumulative, taxable,
before the meeting and for meaningful participation non-convertible Debentures (4.64% ONGC 2023
at the meeting. Series III) of the value of `10,00,000/- (Rupees
Ten Lac only) each for cash at par fully paid
Decisions at the Board or Committee Meetings were
up, on Private Placement Basis, amounting to
carried out unanimously except in such case where
`1140,00,00,000/- (Rupees One Thousand One
dissent of Director(s) was recorded specifically.
Hundred Forty Crore Only).
Based on the compliance mechanism established
4. The Company has issued 15,000 unsecured,
by the Company and on the basis of review of
listed, redeemable, non-cumulative, taxable,
compliance reports pertaining to all applicable laws
non-convertible Debentures (4.50% ONGC 2024
to the Company laid before and taken note by the
Series IV) of the value of `10,00,000/- (Rupees
Board of the Company, we are of the opinion that
Ten Lac only) each for cash at par fully paid
the management has systems and processes in
up, on Private Placement Basis, amounting to
the Company commensurate with the size and
`1500,00,00,000/- (Rupees One Thousand Five
operations of the Company to monitor and ensure
Hundred Crore Only).
compliance with applicable laws, rules, regulations
and guidelines.
We further report that during the audit period, there Sd/-
was no other specific event/ action in pursuance of Ashu Gupta
the above referred laws, rules, regulations, guidelines, Company Secretary in Practice
etc. having a major bearing on the Company’s affairs UDIN: F004123C000728836
except the following: 03.08.2021 FCS No.: 4123
New Delhi CP No. : 6646
134 1. The Company has issued 5000 unsecured,
listed, redeemable, non-cumulative, taxable, Note 1: This Report is to be read with our letter of
non-convertible Debentures (5.25% ONGC 2025 even date which is annexed as Annexure A and
Series I) of the value of `10,00,000/- (Rupees forms integral part of this Report.
Ten Lac only) each for cash at par fully paid
 ANNUAL REPORT
2020-21
Annexure-A

To
The Members,
5. The compliance of the provisions of Corporate
OIL AND NATURAL GAS CORPORATION LIMITED,
and other applicable laws, rules, regulations,
(CIN: L74899DL1993GOI054155)
standards is the responsibility of the management.
Regd. Office: Plot No. 5A- 5B,
Our examination was limited to the verification of
Nelson Mandela Road, Vasant Kunj,
procedures on test basis.
New Delhi -110070
6. Due to COVID-19 pandemic and Nation- wide
Our Report of even date is to be read along with this
lockdown to contain the spread of Corona Virus,
letter.
work place/ offices remained closed or working
1. Maintenance of secretarial record is the with less staff. In view of advisory issued by
responsibility of the management of the Government, no physical visits to the office of
Company. Our responsibility is to express an auditee could be made and as such physical
opinion on these secretarial records based on copies of the secretarial records could not be
our audit. verified. Reliance has been placed on the soft
copy of necessary secretarial records /documents
2. We have followed the audit practices and
etc. made available to us. A representation in this

Secretarial Audit Report

processes as were appropriate to obtain
regard certifying the correctness of the contents
reasonable assurance about the correctness
of the secretarial records provided has been
of the contents of the secretarial records. The
taken from Company’s management.
verification was done on test basis to ensure that
correct facts are reflected in secretarial records. 7. The Secretarial Audit Report is neither an
We believe that the processes and practices, assurance as to the future viability of the Company
we followed provide a reasonable basis for our nor of the efficiency or effectiveness with which
opinion. the management has conducted the affairs of the
Company.
3. The compliance by the Company of applicable
financial laws such as direct and indirect tax
laws and maintenance of financial records and
Sd/-
books of accounts has not been reviewed in
this Audit since the same have been subject to Ashu Gupta
review by statutory auditors and other designated Company Secretary in Practice
professionals. UDIN: F004123C000728836
03.08.2021 FCS No.: 4123
4. Wherever required, we have obtained the New Delhi CP No. : 6646
management representation about the
compliance of laws, rules and regulations and
happening of events etc. 135
 THE UNSTOPPABLE
ENERGY SOLDIERS

Management Discussion and Analysis Report

The dreadful reality of COVID-19 that emerged seem to be paying off and second wave has ebbed.
in early 2020 is still very much a part of our lives, Challenge is now to see that the guard is not lowered
societies and economies. In over a year, the count and further waves are averted at all cost. The learning
is sobering and tragic with more than 200 million and preparedness, during this period, are our
infected and over 4 million fatalities till early Aug’21. greatest weapons.
While the global panic and anxiety that characterised
pandemic’s initial surges last year may have abated 1. Global Economy
to an extent, largely on account of the speedy rollout The global economy contracted by an estimated
of vaccines, the contagion is, by no means, any 3.3 percent in 2020 owing to the worldwide
weaker or less virulent – the devastating second disruptions caused by COVID-19, beginning in
wave in India is a brutal reminder of that, as the the first quarter, as per the International Monetary
virus affected the entire country in the span of a few Fund’s (IMF) World Economic Outlook (WEO)
weeks, wrecking lives and livelihoods in its wake while April 2021 update. The de-growth may have been
crippling the entire healthcare system and delaying sharper had it not been for swift disbursement
economic recovery efforts. The world, at large, is of substantial stimulus packages primarily
cognizant of this adverse possibility – unsurprisingly, in the large advanced economies as well as
global vaccine distribution and deployment and development of vaccines in record-setting pace.
worldwide collaboration for effective containment Notwithstanding the laudable efforts in combating
of the disease featured prominently in discussions the infection, damage has already been done
between global leaders during the meeting of G-7 across various segments of the society and
group in June 2021, to which India was a special economy, and as the IMF observes, the ones that
invitee. Indeed, deliberate and concerted policy were already disadvantaged and vulnerable have
efforts in response to this pandemic are a must for been hit the hardest. Close to 95 million more
the world to forge a more resilient and inclusive path people are estimated to have fallen below the
to growth in coming months and years – further, at a threshold of extreme poverty in 2020 compared
micro-level, such actions bolster the untiring efforts with pre-pandemic projections. So, the repair
of the entire medical community and all the frontline work will take years if not decades – and the
workers on the ground and allay the collective fears recovery efforts and trajectories are also likely to
of a jittered population. While at its core, COVID-19 is be divergent based on the stage of the pandemic
a humanitarian crisis of unprecedented proportions, that an economy finds itself in, resilience of its
its ramifications are far-reaching. Some behaviours domestic markets, pre-existing societal inequities
138 and response mechanisms may last only while and structural deficiencies, if any, and room for
the pandemic is still a serious threat, others may policy support and manoeuvring among others.
endure beyond the scourge. A few of such changes
effected in critical sectors as Energy and Technology, Looking ahead, IMF projects the global
like the move towards increased digitalization and economy to grow at 6 percent in 2021 and then
a greater emphasis on lower carbon processes, subsequently moderate to 4.4 percent in 2022.
can dramatically alter the societal and economic But more than anything else, the materiality of
landscape of the future – in fact, they already are the outcome will depend on efficacy of vaccines
redefining priorities for tomorrow’s world. in limiting the future spread and virulence
of the virus and the post-pandemic
It can be safely said the nation has risen as one and dynamics of the global trade and sovereign
all, the efforts of govt. and citizenry taken together relationships.
 ANNUAL REPORT
2020-21

Management Discussion and Analysis Report

Source: IMF WEO April 2021

Indian Economy: The GDP outlook for FY’22 remains optimistic

– CRISIL Research pegs growth at 11 percent
As per the Central Statistics Office (CSO) data
for the year and World Bank in its Prospects
published in May 2021, the domestic economy
report anticipates a more conservative growth
shrank by 7.3 percent in FY’21. In FY’20, the
of 8.3 percent – both coming off of the low base
GDP growth registered was 4.2 percent. The
of FY’21. But the real pathway of growth will
slowdown, too, was less acute than what was
eventually be determined by the future course
projected earlier (-8 percent) as the country
of COVID-19 within the country as well as
clocked a positive second half growth on the
internationally (especially for travel, tourism and
back of a strong domestic market recovery. On
export-oriented sectors), speed and efficacy of
the flip side, the recovery, though was upstaged
the vaccination program and sovereign policy
by an excruciatingly painful second wave
efforts to support the disenfranchised and
where the country’s daily infections breached
reinvigorate the economy at large.
0.4 million at one point.

139

Source: CSO, Crisil Research

 THE UNSTOPPABLE
ENERGY SOLDIERS
2. Global Energy Sector demand and coordinated production cutbacks
by the OPEC+ group (led by Saudi Arabia and
Energy and the Pandemic: Like most of the
Russia) – Brent averaged USD61.12/bbl for the
global economy, the COVID-19 pandemic
Jan-Mar 2021 period versus USD29.56/bbl in
had a searing impact on the global energy
the Apr-Jun 2020 timeframe. US EIA forecasts an
sector – so much so that the pathways of the
average Brent price of USD62/bbl for 2021 while
sector, particularly the fossil fuel sector, beyond
IHS-Markit is more optimistic at USD67/bbl.
the pandemic may well have been changed
The same barrel averaged USD41.84 in 2020.
irreversibly. Many are calling 2020 a ‘pivot year’
The recovery is impressive, considering that we
where the historical correlation of energy and
still are in the pandemic regime although, with
fossil fuels may have started to abate opening
increasing vaccine coverage and more evolved,
up strong interest, momentum and acceptance
and less stringent, containment measures in
in diverse energy forms, of which renewables
place, there has been a general attenuation of
is a front runner because of its perceived zero
any real possibility of a disruption as acute as
operational carbon footprint. This ‘Energy
that in 2020. Downside risks have not entirely
Transition’ has been in the making for quite some
disappeared. The chance of sanctioned Iranian
time now and predates the pandemic – COP 21
barrels, to the tune of 1-1.5 million bpd later in
climate agreement in Paris 2015 was the primary
the year, coming into the market in the event of
catalyst in moving the dial in that direction on
a successful renegotiation of Iranian sanctions
a global level. However, the pandemic, and the
which has been initiated by the new US
disruption to life, society and economies that it
administration could push prices down south.
caused in its wake, has heralded a significant
But the considerable flexibility lent to the market
reassessment of energy goals and priorities
by the substantial spare capacity (8.7 million
while hastening the entrenchment of attitudes
bpd as per IHS-Markit) with the OPEC+ group
and behaviours, among public, government
is a hedge against any drastic price slumps.
and investors alike that is likely to prove to be
difficult to dislodge even in a post-pandemic Oil demand plummeted by a staggering 10
context. Fossil fuel share in the global energy million bpd in 2020 owing to the pandemic,
mix which has remained steady at 80-82 percent and the impact was most pronounced in the
for most of the last three decades; effects of this US where consumption of liquids decreased
transition, regardless of its pace, will manifest in by 2.5 million bpd. Much of the losses have
the erosion of that share with renewables and already been recouped – from the low of 78.5
other cleaner forms of energy accounting for a million bpd in April 2020, demand in April 2021
greater role in world energy supplies. In 2020, had already reached 94.7 million bpd. Annual
140 as per IHS Markit, global fossil fuel demand is demand is expected to hit pre-pandemic levels
estimated to have dropped by 7 percent, with oil in 2022, according to the IEA. This is spurred
alone falling by 10 percent while the renewables by return of vehicular traffic in most of the major
registered a growth of 9 percent. Only a part of countries in the world as well as the improving
this degrowth is expected to reverse. overall economic outlook.

Oil Prices & Demand: Impact of the globe- On the flip side, demand growth on a longer
sweeping COVID-19 contagion on Oil prices term basis is constrained due to the rising
was immediate and steep – at its worst, Brent fuel efficiencies, increasing electrification in
crude had nosedived to under USD20/bbl while mobility segment and growth of biofuels. IHS-
WTI marker had traded in the negative, a first. Markit in its Annual Strategic long-term forecast
Prices have recovered now on the back of rising anticipates 2050 oil demand to be 106.7 million
 ANNUAL REPORT
2020-21

Management Discussion and Analysis Report

bpd, sliding down from a peak demand of 109.1 the expected drop in global natural gas demand
million bpd in 2037. Under IEA’s Stated Policies for 2020. However, demand is expected to ramp
scenario, oil consumption in 2040 is pegged at up by 3 percent during 2021. Although pipeline
4832 MMT versus 4525 MMT in 2019. However, gas exporters bore the brunt of the supply-
in the Sustainable Development Scenario, oil side adjustment to the demand drop caused
consumption declines by almost one-thirds to by COVID-19, the majority of LNG exporting
just over 3000 MMT in 2040. countries also experienced varying degrees of
supply curtailment over first-half 2020. The US
Supplies in 2020 and 2021 have more been a
accounted for the biggest share of the downward
story of forced and deliberate production cuts
adjustment in global LNG supply, underscoring
in the US and OPEC+ group respectively in
the outsized role of US LNG in market balancing
response to the sharp drop in crude prices.
at a time of a historic oversupply. LNG trade
US Oil production in 2020 stood at 11.3
grew, albeit marginally – from 357 MMT in
million, against 12.2 million bpd in 2019.
2019 to 362 MMT in 2020. Asia Pacific and
OPEC’s crude output stood at 25.7 million
Asia again imported the most volumes in 2020,
bpd in 2020 against 29.4 million bpd in 2019.
together accounting for more than 70% of global
Russia too cut production by a million barrels
LNG imports.
during the period. For the current year, 2021, 141
total liquids production is expected to be 96.2 It has been a tumultuous period for global gas
million bpd, rising from 2020 average output of prices. While the first half of 2020 was marked
94.3 million bpd. by a drop in spot NE Asia LNG prices on the
back of export cuts in response to loose market
Gas & LNG: Gas, the cleanest of the fossil
conditions, the second half was a story of
fuels, too, suffered a demand contraction of
runaway pickup in prices which followed well into
about 2 percent (~75 BCM) in 2020, as per IEA.
2021 owing to demand recovery in key markets
Most declines in gas consumption have been
such as China, cold winter and sustained
observed in mature markets across Europe,
supply and shipping disruptions. On 13 January
Eurasia, North America, and Asia. Taken
2021, JKM spot LNG prices for February 2021
together these markets account for over 80% of
delivery reached USD32.5/MMBtu. At this price
 THE UNSTOPPABLE
ENERGY SOLDIERS

level, spot LNG delivered in February 2021 is created at least USD 28 billion of value and returns
more than twice as expensive as crude oil on reached at least 16% (at USD50-USD70/bbl
an energy equivalent basis, as per IHS-Markit. oil prices). More importantly, these discoveries
Henry Hub prices averaged USD1.99/MMBtu in are likely to yield USD120 billion in cash-flow to
2020 vis a vis USD2.52/MMBtu in 2019. operators, and far more to host governments
with cumulative material production volumes at
Looking ahead into the evolving energy future,
over 1.6 million BOE in early 2030s.
gas continues to come across as the most
secure among the fossil fuels and one with Exploration efficiency will be a marker of
a more resilient demand outlook even in an successful E&P companies of the future, with
environment of increasing carbon-mitigation more efforts directed towards shorter-cycle,
emphasis. quicker-payback prospects, possibly gas-
rich zones, at the cost of more conventional
Exploration: The theme of ‘value over volume’ wildcats in newer areas. However, exploration
which majorly influenced Exploration’s outlook objectives of NOCs like ONGC is likely to be
post-2015 price crash has now assumed decidedly different than major operators given
centrestage in a COVID-affected energy its overarching mandate to boost the overall
paradigm. attractiveness and prospectivity of the domestic
Wood Mackenzie’s initial review of global upstream arena. ONGC’s leading role in the
142 exploration performance for 2020 is definite National Seismic Project and campaigns in
pointer to that effect. In a year when Exploration frontier areas is a testament to its larger role
& Appraisal well count was down 40 percent and within the sovereign energy agenda. The
spend was 38 percent below that in 2019, despite Company’s consistent and concerted efforts in
this area also bore fruit with the recent production
less drilling, global exploration discovered 25
of oil from the Bengal Basin making it the eighth
billion BOE, displacing 2019 as the year with
producing basin in the country, and the first one
the highest initial view of volumes since 2015, of
in over three decades.
which 10.7 billion BOE are already considered
commercially viable. 64% of 2020 discovered Investment: As per Wood Mackenzie estimates,
volumes are gas (89 tcf), including 40% (55 tcf) the global upstream sector is valued at anywhere
in Russia’s Arctic. The report estimates explorers between USD 3.3 tn to USD 8.7 tn based on
 ANNUAL REPORT
2020-21
whether the transition is accelerated or a more a balance of scale, profitability and resilience.
protracted one where oil and gas demand While investments are expected to increase by
enjoys another decade of demand growth. 3-4 percent this year, it would be still around 30
Notwithstanding such stratospheric valuations, percent lower than pre-crisis levels.
in the backdrop of growing concerns around the
The room for augmented capital programs is
industry’s emissions and heightened scrutiny
also limited by growing shareholder demands
from stakeholders, particularly the global capital
and highly leveraged positions of oil and gas
markets, investment and capital allocation in
operators. Further, the prospect of the Energy
the sector have become riskier, costlier and
Transition has also meant that oil and gas
more complex.
companies may now have to ring-fence newer
Last year, global upstream investment sank to strategic investments in renewables or low-
a 15-year low of USD350 billion, as operators carbon opportunities. Without adequate capital

Management Discussion and Analysis Report

focused predominantly on conserving the sector could be staring at a supply crunch
cashflows and protecting their balance-sheets leading to higher prices in the near to mid-term.
by cutting their expenditures. Moreover, since
the price crash of 2014-15, operators have also M&A: The M&A landscape in 2020 was
locked in several levers for cranking up their hammered by the COVID-19 onslaught as total
operational efficiencies from project redesigns global upstream transaction value fell by more
and standardisations to contract renegotiations than 30 percent to USD102 billion, a 15-year
to phased development. The new projects low, as per IHS-Markit. Deal count dropped to a
would boost investment by 20% and deliver 14 20 year low. Asset deal count in 2020 cratered to
million BOE/D of oil and gas production later a 25-year low. Asset transaction value tumbled
this decade – adding almost 10% to global oil over 70% to only USD17 billion, the lowest
and gas supply, as per Wood Mackenzie. The total since 2001. Global corporate deal value
most attractive projects are shorter-cycle and totalled USD85 billion, accounting for a majority
come with a quick return-to-money such as of deal value for the second consecutive year.
advantaged resources (subsea tie-backs and Although, the sentiment and activity is poised
brown-field improved recovery schemes), there for recovery in 2021 following the lows of 2020,
is considerable value still in high volume projects but both volume and values are likely to remain
such as US GoM or Brazilian deepwater, with below historical averages for the sector in light

143

Source:IHS-Markit
*Forecast
 THE UNSTOPPABLE
ENERGY SOLDIERS

Source: BloombergNEF
Energy Transition investment hits USD500 bn for first time

of the prevailing pandemic-induced uncertainty, Hydrogen and CCS are small sectors for now,
valuation, energy transition-related dilemmas, but are expected to grow. In 2020, they received
among others. investment of USD1.5 billion and USD3 billion,
respectively down 20% and up 212%.
Clean Energy: As per the IRENA, despite the
COVID-19 induced economic slowdown, the Energy Transition investment hits USD500 bn
world added more than 260 gigawatts (GW) of for first time
renewables last year, exceeding expansion in
In terms of capacity, the growth was strikingly
2019 by close to 50 per cent. Overall, as per the
remarkable. Despite pandemic-induced supply
latest BNEF annual report, global investment
chain challenges and construction delays,
in the low-carbon energy transition totalled
renewable capacity additions in 2020 expanded
USD501.3 billion, up from USD458.6 billion in
by more than 45% from 2019, and broke another
2019 and just USD235.4 billion in 2010. This
record. An exceptional 90% rise in global
figure includes investment in projects, such as
144 renewable power, energy storage, EV charging
wind capacity additions led the expansion.
Also underpinning this record growth was the
infrastructure, hydrogen production and CCS
23% expansion of new solar PV installations
projects – as well as end-user purchases of
to almost 135 GW in 2020. China leads the
low-carbon energy devices, such as small-scale
world – both in annual investment and capacity
solar systems, heat pumps and zero-emission
additions. China added a whopping 236 GW of
vehicles. The largest sector in 2020 was
new renewable capacity in 2020, accounting
renewable energy, which attracted USD303.5
for over 80 percent of total global growth in
billion for new projects and small-scale systems.
capacity for the year. The exceptional growth
The second biggest was electric transport,
recorded by the clean energy sector in a year
which saw USD139 billion of outlays on new
that was marred by the pandemic and during a
vehicles and charging infrastructure, up 28%.
 ANNUAL REPORT
2020-21
period when oil prices were low is a definitive estimated to have fallen by 2.5 percent (as per
signpost for how the energy industry is shaping Wood Mackenzie) in 2020. The oil demand
up for the future. Although renewable capacity contraction is even more acute with total liquids
additions in India were hurt by the pandemic, consumption falling by over 9 percent.
dropping by almost 50 percent from 2019, new
The country’s energy mix is highly dependent on
records for renewable capacity expansion are
fossil fuels, which cater to over 90 percent of the
expected to be set in 2021 and 2022 as delayed
domestic energy needs. While the composition
projects from previous competitive auctions are of the basket is unlikely to see any sudden and
commissioned, as per IEA Outlook. marked shifts, over the longer term, renewables
will be a valuable contributor, especially in the
3. India Energy Snapshot
power sector, and the impressive rise of capacity
India is the world’s third largest energy additions as well as successful recent auctions

Management Discussion and Analysis Report

consumer, behind China and the US. In the are a clear indicator of the trend. The country
coming decades, India’s role will become central is the world’s fifth largest renewable energy
to global energy demand growth as China’s market with installed capacity of close to 95 GW.
economic model of expansion recalibrates As part of its COP 21 Nationally Determined
away from manufacturing-led to service oriented Contributions (NDCs) commitment the country
resulting in less energy intensity and relatively has set an ambitious target of 175 GW by
less buoyant demand growth. In the preceding 2022. While the pandemic seriously hampered
two decades as well, the country’s primary capacity growth in 2020 the pace is likely to pick
energy consumption growth has been quite up in 2021 and 2022.
impressive – energy consumption grew by 5.05 Considering continued relevance of oil and gas
CAGR during 2000-2019; during the same period in the domestic energy basket of the future,
global energy demand growth averaged 2.08 ONGC’s contributions are vitally important
CAGR. But the COVID-19 pandemic is, by far, for boosting supply security in a country that
the most damaging disruption the energy sector has struggled with very high degree of import
has encountered with total energy requirements dependence.

145
 THE UNSTOPPABLE
ENERGY SOLDIERS
Crude Oil & Natural Gas Production Q4FY’21 stood at 54.1 MMT versus 52.8 MMT in
Q4FY’20. The potential impediment to sustaining
As per Petroleum Planning and Analysis Cell
this growth is the course of the pandemic in
(PPAC) data, Domestic crude oil production
the country. Although the devastating second
in FY’21 stood at 30.49 Million Metric Tonnes
wave which hit the country in April and May of
(MMT) versus 32.17 MMT during FY’20. ONGC’s
this year did not impair demand like in 2020 as
standalone production was 20.27 MMT vs 20.71
the lockdowns were more localised and less
MMT in FY’20. Production from Oil India Ltd
stringent, continued threat of COVID-19 will
and PSC/JVs was 2.90 MMT and 7.30 MMT
weigh down on prospects of stable demand
respectively.
buildup.
Natural Gas output in FY’21 was 28.67 Billion
Import and Export
Cubic Metres (BCM), versus 31.19 BCM in
FY’20. ONGC’s standalone domestic output Crude oil imports decreased 12.7 percent
stood at 22.10 BCM. Oil India produced 2.48 in FY’21 to 198.11 MMT in FY’21, the lowest
BCM and other private operators 4.09 BCM. volume of imports in the last six years, as per
PPAC data. Petroleum product exports came
Consumption of Petroleum Products
down to 56.8 MMT from 65.7 MMT in FY’20. The
According to PPAC figures, domestic petroleum drop in import volumes was also accompanied
products consumption in FY’21 declined by by lower average crude prices which led to
over 9 percent to 194.6 MMT, as demand for an almost 40 percent drop in dollar value of
transport fuels crashed across the board as imports. Forex outgo for imports for FY’21 was
imposition of countrywide lockdowns of varying USD62.7 billion versus USD101.4 billion in the
intensities in response to COVID-19 outbreak previous financial year. The lower import bill also
severely tamped down consumption. The helps the country’s trade deficit. Overall, trade
contraction was the most in the first quarter deficit in FY’21 has moderated to USD98.6 bn
(Apr-Jun) of FY’21, especially in April as liquids compared with USD161 bn in the previous year.
consumption dropped to 9.4 MMT – the
figure for April 2020 was 18.3 MMT, signifying Crude Oil Price: Indian Basket
a drop of almost 50 percent. While there is
Crude oil price of the Indian basket averaged
widespread consensus on India being the
USD44.82 per barrel (`3,327 per barrel) during
world’s demand hub of the future, actual growth
FY’21 compared to USD60.47 per barrel (`4,286
in demand may be on the lower side, a result
per barrel) in the previous fiscal (FY’20). The
of general slowdown of economic and industrial
drop in prices was the steepest in the month
146 activity that preceded the pandemic and the
of April 2020 when the Indian basket averaged
pandemic has further intensified this demand
USD19.9 per barrel. Subsequently, prices
sluggishness. This sentiment is echoed in IEA’s
recovered on the back of gradual easing of
country outlook for India where it states “Prior
lockdowns across the world and reopening of
to the global pandemic, India’s energy demand
economies. Domestic crude basket averaged
was projected to increase by almost 50 percent
USD64.73 per barrel in March 2021.
between 2019 and 2030, but growth over this
period is now closer to 35 percent in the Stated While current prices are at a level that aligns with
Policies Scenario, and 25% in the Delayed ONGC’s strategic outlook and project planning
Recovery Scenario”. That being said, actual lens, there are downside risks so long as the
recovery post the first quarter of FY’21 has been pandemic remains in the mix of things. Also,
evidently strong – products consumption in as per an IHS-Markit report, energy transition
 ANNUAL REPORT
2020-21

Management Discussion and Analysis Report

considerations and new COVID-19 induced gas-based one. The formula was a step away
uncertainties around demand are likely to make from the regulated pricing regime but because
price cycles shorter which means volatility will of its linkages to prices in international gas hubs
be a more routine aspect of crude prices in located in more liquid and gas-rich areas it does
the future. This is an uncomfortable outlook for not fully capture the realities of the domestic
upstream operators, considering the already market. Domestic gas prices in FY’21 have been
heightened risk quotient of the business and among the lowest seen so far since the prices
substantial capital requirements of its operations. were revised – it was priced at USD2.39/MMBtu
for H1FY’21 and USD1.79/MMBtu for H2FY’21
Domestic Gas Prices on GCV basis. It remains at the same level of
USD1.79/MMBtu in H1 of the ongoing fiscal.
Clear emphasis has been lent to the gas sector
This is a matter of grave concern for upstream
in the past few years with the express objective
operators and also jeopardizes the potential
to boost the attractiveness of the indigenous
for further commercial development of gas
gas market. Gas has a clear role in the energy
resources. Without necessary policy interventions
transition because of its cleaner carbon profile.
and fiscal support, upstream gas development at 147
While currently gas contributes merely 6 percent to
such price levels are economically a loss-making
the country’s energy mix, the prospects are quite
proposition. The special price regime put in place
promising over the coming years, the build-up
for enabling development of difficult gas in HP-
of associated infrastructure from regas facilities
HT/Deep & Ultra deep water has also come
along the country’s coastline to expansion of
under pressure during the last one year owing
pipeline network is a testament to that.
to the drop in the ceiling. The ceiling prices in
Revision of domestic gas price was one of the H2FY’21 was USD4.06/MMBtu on a GCV basis
earliest policy moves of the current Government which further declined to USD3.62/MMBtu in H1
for transforming the domestic economy into a of ongoing fiscal.
 THE UNSTOPPABLE
ENERGY SOLDIERS
At such depressed levels, domestic gas deep-water gas supplies from the Eastern
production is clearly disadvantaged against offshore area.
LNG in the spot markets, manifested in the
Some of the key reform measures have been
growing share of LNG in the domestic gas
the introduction of a new licensing regime –
consumption. LNG is a fantastic resource that
Hydrocarbon Exploration and Licensing Policy
allows for quick access and supply in today’s
(HELP) – that allows for Open acreage system
global energy market – however the resource,
of bidding with marketing and pricing freedom
especially spot cargoes, can only make for an
among other incentives. The Government also
interim supply source in the larger energy matrix
brought in policy to incentivize greater recovery
of the country given its lack of supply security
from our hydrocarbon producing assets through
and price variability. This year’s spike in Asian
the EOR Policy.
LNG prices is an extreme example of that when
spot prices jumped to over USD30/MMBtu for Further, the Government of India, vide
February 2021 deliveries from a low of sub- Notification dated 15.10.2020, has allowed
USD2/MMBtu in June 2020. With this as the the contractors to sell the natural gas through
backdrop, there is a pressing need to reassess e-bidding where the contracts require market
and rejig the current pricing structures in place price discovery through transparent means.
for domestic gas business. Wood Mackenzie Such incentives and affirmative policy actions
in a recent report even suggested the time are a much-needed vital nudge for a sector
is right to remove the price ceiling imposed that has enormous untapped potential and is a
on deep-water, ultra deep-water and HP-HT key strategic plank for supporting the country’s
projects. This will allow operators to unlock growth and development pursuits.
value while ensuring a steady and reliable ONGC has made significant progress in this
supply of indigenously developed gas to the timeframe. It produced its first gas from its
country’s growing industrial and commercial landmark deep-water KG-DWN-98/2 project. Its
setup – making that the perfect embodiment of efforts contributed to the upgrading of Bengal
an ‘Atmanirbhar Bharat’ philosophy. and Vindhyan from Category 3 to Category 2
Looking ahead though, there is reason to Basins, of which the former became a Category
believe that the situation will improve. Setting 1 basin soon after commercial production of first
up of India Gas Exchange in June last year is a oil from its Ashokenagar-1 well. The company
welcome step in the direction of market-driven acquired 24 blocks in five OALP bid rounds and
price discovery of domestic gas. 19 in DSF bid rounds. ONGC also led the NSP
campaign from the front, completing over 90
148 Domestic Upstream Reforms and Initiatives percent of acquisition and processing and 80
The last few years in the domestic upstream percent interpretation of the acquired data of the
sector have seen significant policy reforms and total assigned 42,211 LKM survey.
progressive decisions. The pace of policymaking Unfortunately, it has also been a period
was remarkable – and there was progress on of unchecked volatility (price cycles) and
the ground too with continued expansion of unprecedented shocks (COVID-19). The reality
the country’s exploration prospectivity with of Energy Transition at the larger global level
projects such as the National Seismic Project adds another layer of complexity to the sector’s
and Reassessment of Hydrocarbon potential as fortunes and weighs on the risk appetite of
well as new players that entered the fray through investors and operators. So, while there is
the DSF and OALP bid rounds. They have also no discounting the positive policy approach,
provided the necessary support for materializing
 ANNUAL REPORT
2020-21
there is definite room and rationale for further assets has been 58.39 MMTOE (against
improvements in the regulatory and fiscal 63.23 MMTOE during FY’20). ONGC-operated
space. Some key issues that merit attention at domestic fields accounted for bulk of the oil and
this point are the moderation of OID Cess and gas production – 65 percent and 81 percent
royalty rates, domestic gas pricing mechanism respectively. Closure of wells due to less offtake
for nomination blocks and coverage of crude oil by customers and supply chain challenges were
and natural gas under GST. the primary contributors to the dip in ONGC’s
domestic oil and gas production during FY’21.
Operational Performance:
Oil and gas production profile from domestic as
For FY’21, Oil & Gas production of ONGC well as overseas assets during last five years are
Group, including PSC/JVs and from overseas as given below:

Management Discussion and Analysis Report

Oil and gas production FY’21 FY’20 FY’19 FY’18 FY’17

Crude Oil Production (MMT) 31.04 33.11 34.33 34.79 33.97

ONGC 20.27 20.71 21.11 22.31 22.25

ONGC’s share in JV 2.26 2.64 3.12 3.13 3.29

ONGC Videsh 8.51 9.76 10.10 9.35 8.43

Natural Gas Production (BCM) 27.35 30.12 30.55 29.42 27.64

ONGC 22.10 23.85 24.75 23.48 22.09

ONGC’s share in JV 0.72 1.04 1.06 1.13 1.18

ONGC Videsh 4.53 5.23 4.74 4.81 4.37

Proved Reserves
Position of proved reserves of ONGC (including ONGC Videsh) is as below:

Proved Reserves (MMTOE) FY’21* FY’20* FY’19* FY’18 FY’17

Estimated Net Proved O+OEG Reserves 870.44 960.82 991.37 982.01 928.16

ONGC 580.52 602.55 625.52 683.46 696.47 149

JV share 16.33 17.82 20.07 11.42 14.46

ONGC Videsh** 273.59 340.45 345.78 287.13 271.23

*FY’19 onwards, ONGC’s reserves are based on PRMS basis; earlier years reserves were reported based on SPE-classification.
** ONGC Videsh FY’21 reserves includes reserves of Mozambique (Developing Asset) as compared to Note 59.1 of Notes to
consolidated financial statements for the year end March 2021.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Financial performance: ONGC (Standalone) (` in million)
% Increase/
Particulars FY’21 FY’20*
(Decrease)
Revenue:
Crude Oil 479,338 648,363 (26.07)
Natural Gas 114,216 193,556 (40.99)
Value Added Products 85,355 115,095 (25.84)
Other Operating revenue 2,502 5,122 (51.15)
Total Revenue from Operations: 681,411 962,136 (29.18)
Other Income 71,425 66,102 8.05
EBIDTA 335,697 472,134 (28.90)
PBT 164,028 203,878 (19.55)
PAT 112,464 134,637 (16.47)
EPS 8.94 10.70 (16.45)
Dividend per share 3.60 5.00 (28.00)
Net Worth** 2,045,586 1,930,948 5.94
% Return on net worth 5.50 6.97 (21.15)
Capital Employed 1,159,393 1,062,842 9.08
% Return on capital employed #
12.23 24.59 (50.25)
Capital Expenditure 268,593 295,385 (9.07)
* Restated
** Includes reserve for equity instruments fair valued through other comprehensive Income
# Return on capital employed is calculated without reducing exceptional item from PBIT. In case exceptional item is reduced from
PBIT, ROCE would be 13.42% for 2020-21 and 19.98% for 2019-20.

Details of Significant change in ratio (i.e. 25% or more from previous year):-

Particulars 2020-21 2019-20* Change in %

(i) Debtors Turnover 34 25 36.00
(ii) Inventory Turnover 8.00 11.83 (32.38)
150
(iii) Interest Coverage Ratio 55.95 54.86 1.99
(iv) Current Ratio 0.86 0.56 53.57
(v) Debt Equity Ratio 0.07 0.07 -
(vi) Operating Profit Margin (%) 25.30 29.72 (14.87)
(vii) Net Profit Margin (%) 16.50 14.00 17.86
(viii) Return of Net Worth (%) 5.50 6.97 (21.09)
*Restated
 ANNUAL REPORT
2020-21
Notes:

1. Change in Debtors Turnover Ratio added products revenue by `29,740 million and
decrease in other operating revenue by `2,620
The Debtors Turnover ratio for FY 2020-21 is
million. Further, there is marginal increase in
34 against 25 in FY 2019-20 i.e. increase of
average inventory by `3,853 million.
36%, this is mainly due to decrease in revenue
from operations and decrease in average trade 3. Change in Current Ratio
receivable. The decrease in revenue from
operations is mainly due to decrease in crude The Current ratio for FY 2020-21 is 0.86 against
oil revenue by `169,025 million on account of 0.56 in FY 2019-20 i.e. increase of 53.57% is
decrease in crude oil prices, decrease in natural mainly due to decrease in current liabilities by
gas revenue by `79,340 million on account of 23.34% and increase in current assets by 17.76%.

Management Discussion and Analysis Report

decrease in natural gas prices, decrease in value The decrease in current liabilities is mainly due
added products revenue by `29,740 million and to decrease in other financial liability by `75,311
decrease in other operating revenue by `2,620 million, mainly on account of decrease in current
million. Further, there is marginal decrease in borrowings by `30,089 million on account of
average trade receivable by `3,213 million. repayment during the year and decrease in
trade payable by `7,369 million. The same is
2. Change in Inventory Turnover Ratio partly offset by increase in other current liabilities
by `4,526 million and increase in provisions by
The Inventory Turnover ratio for FY 2020-21 is
`2,883 million. Further, increase in current assets
8.00 against 11.83 in FY 2019-20 i.e. decrease
is mainly due to increase in trade receivable by
of 32.38%, which is mainly due to decrease
`30,199 million due to increase in selling price
in revenue from operations and increase in
of crude oil during Q4 FY’21, increase in other
average inventory. The decrease in revenue from
current assets by `20,416 million and increase
operations is mainly due to decrease in crude
in other financial assets by `6,160 million which
oil revenue by `169,025 million on account of
is partly offset by decrease in cash and bank
decrease in crude oil prices, decrease in natural
balance by `6,656 million mainly on account of
gas revenue by `79,340 million on account of
maturity of bank deposits.
decrease in natural gas prices, decrease in value

151
 THE UNSTOPPABLE
ENERGY SOLDIERS
Financial performance: ONGC (Group) (` in million)
% Increase/
Particulars FY’21 FY’20*
(Decrease)
Revenue from Operations 3,605,723 4,249,611 (15.15)
Other Income 93,230 90,770 2.71
EBIDTA 587,890 611,820 (3.91)
PBT 301,097 189,625 58.79
Profit after Tax for the year 213,435 114,563 86.30
-Profit attributable to Owners of the Company 162,487 108,036 50.40
-Profit attributable to Non-Controlling interests 50,948 6,527 680.57
EPS 12.92 8.59 50.40
Net Worth** 2,209,810 2,051,046 7.74
% Return on net worth 7.35 5.27 39.60
Capital Employed 2,028,376 1,981,199 2.38
% Return on Capital employed# 15.63 16.98 (7.93)
* Restated
** Includes reserve for equity instruments through other comprehensive income
# Return on capital employed is calculated without considering the impact of exceptional items. In case exceptional item is also
considered for calculating PBIT, ROCE would be 16.09% for 2020-21 and 12.42% for 2019-20.

4. Strengths & Weakness weakness. Similarly, an under developed oil field

services in the country and access to technology
ONGC’s operations can boast of solid
has been a bottleneck in the development of
fundamentals – having never posted an annual
oil industry in the country. ONGC feels that the
loss even through the worst of downturns. The
growing pace of reforms and scale of India’s
Company also enjoys other strengths like a
energy market will ensure that these challenges
vast and growing captive market, increasing
are overcome and can make India a hub of oil
demand for energy, a young population and
field services industry.
growing urbanisation. All this means that while
its peers have real concerns about erosion of 5. Opportunities & Threats
market, ONGC is assured of a market for its
152 primary products for at least two decades. India, The energy landscape is undergoing a shift.
being still under-explored country, also has vast The ongoing shift is more fundamental than
frontier areas to explore and ONGC is ideally cyclical. While contending with uncertainty has
poised to reap this advantage. ONGC has a been a proven forte of the traditional oil and
vast resource base including trained, dedicated gas sector, the current period of heightened
and experienced manpower to take up this and sustained uncertainty fuelled by concerns
daunting task. around emissions, sustainability and safety is
likely to significantly alter the strategic rulebook
At the same time, the poor prospectivity of the and business approaches of most major energy
country has proved to be a weakness in scaling operators around the globe. Even in the most
up the operations and have been a traditional aggressive carbon-constrained future scenarios
 ANNUAL REPORT
2020-21
of the industry, the oil and gas sector continues balance sheet strength. While most oil and gas
to play an important role, however there is a majors and large global independents reduced
need for companies to urgently refocus on their capital outlays, ONGC did not implement any
strategic priorities based on their established drastic cutbacks. Over the past 5 years, our
competencies and possibilities of growth and annual capex has averaged `300 billion. While
swiftly reorganize portfolios and investments, cost optimization and harnessing resource
if need be. and operational efficiencies are vital levers in
managing the fallout of low prices there is a
Extremely low energy prices – similar to what the
limit to extracting continuing value from such
industry experienced in the immediate aftermath
processes. From a robust project planning and
of the COVID outbreak – is detrimental to the
execution framework to phased developments,
sector’s growth prospects. Such low prices
ONGC continues to persist with all possible
force companies to cut back on investments,

Management Discussion and Analysis Report

avenues for further cost reduction. But for
defer planned projects and could also erode
greater energy security increasing contribution
shareholder value. Historically, the upstream
from domestic supplies is a must and that
sector has always relied on the inevitable
entails a stable price environment that provides
demand growth to navigate through any period
cover for aggressive upstream investments
of crisis and that has also formed the basis of
that can unlock the volumes from our basins.
valuations that the sector commands despite
Notwithstanding the bearish outlook on prices,
it being a business that is inherently risk-prone
ONGC is persisting with crucial projects that
with non-deterministic outcomes. But this has
promise those extra barrels of oil and bursts
changed in recent years as demand uncertainty
of gas that is so important for our energy
has limited long-term optimism so much so
security. In FY’21, despite the logistical and
that even in a period of relatively higher prices
supply constraints in place, ONGC successfully
companies remain committed to protecting
executed the Neelam Redevelopment Project,
their balance sheets and ensuring shareholder
bringing onstream oil and gas volumes of over
returns instead of investing for material
7.5 MMTOE.
business growth.
Despite the massive setback due to the
Low oil and gas prices, combined with shorter
pandemic and the ongoing distress related to
and more frequent cycles of volatility, as IHS-
energy transition readjustments, there still is a
Markit expects, could lead to a sustained
lot of opportunity for expansion of domestic E&P
slowdown in investment leading to near to
business. As per the most recent resource re-
medium term supply shortages and even higher
estimation exercise, a total of about 42 BTOE
prices. Investment is at a low ebb already
of resource potential was estimated from all 153
– global upstream investment in 2020 was
category basins. Out of this about 12 BTOE has
USD350 billion, 30 percent below pre-crisis
already been discovered, with a large potential
levels and 60 percent below 2014’s peak of 750
of about 30 BTOE yet to be discovered. With
billion, as per Wood Mackenzie.
implementation of Hydrocarbon Exploration
An extended period of low commodity price Licensing Policy (HELP) under which has
regime is a double whammy for energy been launched the various rounds of OALP
NOCs in an energy-hungry and resource- (Open Acreage Licensing Policy) and DSF
deficient country like India, as they have to (Discovered Small Fields) initiative, ONGC will
strive to balance the dual goals of protecting have opportunities to take lead in acquiring
shareholder value and bolstering domestic prospective areas for exploration of oil & gas
energy security while preserving profitability and and to maximize its reserve base. ONGC
 THE UNSTOPPABLE
ENERGY SOLDIERS
has already initiated and is continuing efforts Companies, too, are embracing change, as
for identifying such areas in various basins. choosing to remain out of step with this evolution
Meanwhile, seismic data acquisition has also carries with it the risk of rendering one ‘dated’ and
started in earnest in the Blocks under OALP ‘incongruent’ in tomorrow’s energy ecosystem.
operated by ONGC. While there is no silver bullet or one-size-fits-all
prescription for traditional fossil fuel companies
The remarkable ascent of cleaner energy
as there are multiple approaches for making
alternatives – from renewables and EVs to
businesses future-ready and carbon-light. And
batteries and hydrogen – presents a clear and
we are seeing a variety of approaches among
persistent challenge to the ‘status quo’ within
the majors, as per a recent Wood Mackenzie
the oil and gas sector. At least for the next 20
report – US majors are currently focusing more
years, the threat is more tactical than existential
on making their already successful, massive
in nature as the new energy paradigm warrants
and integrated energy value-chains more
a serious rethinking and restructuring of extant
sustainable through reduction in methane
business models. Wind and Solar have made
intensity and flaring and sourcing renewables
strong inroads in the power sector. In 2020,
renewables accounted for over 80 percent of to power operations instead of making any
the growth in generating capacity, as per IRENA. big-ticket plans to diversify away from oil and
The share of renewables in the power sector gas. European majors, on the other hand, have
is already at 27 percent and is likely to go up plans to build a parallel business in the clean
further with the development of more efficient energy arenas primarily focused on renewable
and cheaper storage solutions. In India itself, energy (Equinor) and batteries (BP) along with
as per the Central Electricity Authority (CEA) continuing to preserve their legacy oil and gas
estimates, by 2029-30, the share of renewable positions in a more sustainable fashion.
energy generation would increase from 18% to For many years now, ONGC has been a
44%, while that of thermal is expected to reduce champion of sustainable and equitable energy
from 78% to 52%. And although gas holds its solutions. Our wind projects, UNFCCC-certified
ground there as ‘transition’ and ‘cleaner’ fuel, CDM projects and our growing solar capacity
there is no long term assurance on its continued are examples of our clean energy prowess.
utility in a low-carbon setting unless there are Energy Strategy 2040, our vision document
steps taken to decarbonize the value-chain of for the future, has set a target of 10 GW of
the fuel further through technologies like CCS or renewable capacity by 2040. Currently, we have
green ‘LNG’. Coming to the impact of electric a wind power capacity of 153 MW and installed
vehicles on oil demand replacement, in 2020, solar capacity of 31 MW, at the end of FY’21.
154 EVs displaced the equivalent of 0.4 percent of In the arena of alternative energy, the Company
total oil demand (~370,000 bpd) as per IHS- has also taken up India’s maiden Geothermal
Markit. Fast forward to 2025, oil substitution Field Development Project in Ladakh. ONGC
by electrification of road transport will translate is not moving away from oil and gas but the
to a potential loss of anywhere between 1.1- company is exploring and taking every possible
1.5 million bpd, or as much as 1.4 percent of step to mitigate its overall carbon footprint
total demand. EVs have certainly benefitted through technology-led initiatives as well as
from strong policy mandates, but that this has energy-efficient systems and processes. In our
happened, counter-intuitively, in a year of low oil operations, for example, ONGC has prevented
prices mean that the trend is not an exception the leakage of more than 20 MMSCM of methane
at all. gas since 2007 with an environmental benefit of
 ANNUAL REPORT
2020-21
approximately 300,000 CO2 ton equivalent, as another potent threat to the manner in which oil
part of the Global Methane Initiative. Percentage and gas companies have historically operated
of gas flared from our operations stand at their business. Climate change and emissions
2.2 percent, lower than the global average of control are the principal drivers of this shift
3.7 percent. As part of its energy conservation in stance towards what were once counted
and carbon mitigation efforts, ONGC has also as untouchable heavyweights of the global
embarked upon replacement of all conventional economy on account of the strategic role
lighting wit LED lighting and started using Micro- of oil and gas. But the records have quickly
turbines and Dynamic Gas blending systems in reversed in the past decade - energy was the
its operational sites (drilling rigs). worst-performing sector in the S&P 500. Every
dollar invested in energy in 2010 was worth
Technology will be a critical lever and an
1.06 dollar at end-2019. In contrast, one dollar
important implement in this transition, especially

Management Discussion and Analysis Report

invested in information technology was worth
from the standpoint of Sustainability as well as
4.35 dollar. Beyond the universal mandate of
Safety. Technology had a hugely transformative
COP-21 mandate, a part of the reason why the
and reformative role during the pandemic-
sector has fallen out of favour also lies in how
induced global disruption as it introduced us all
it has overspent and under-delivered in most
to a new way of living and working. Without the
of its halo or blockbuster projects. Now, it not
aid of digital technologies, businesses would
only faces the increasing likelihood of rising
have had a far more difficult time in navigating
carbon prices, at least in developed world, but
the crisis. ONGC has invested heavily in its
also must contend with microscopic scrutiny of
technology ecosystem in the past two years
the investors through more comprehensive and
from upgrading its ERP system to SAP S4-
transparent ESG reporting and climate related
Hana to Advanced Remote Sensing and
disclosures pertaining to its core business.
Imaging tool (ERDAS Imagine), among others.
Commitment from large number of institutions
Technologies like CCUS will be extremely
to divest from fossil based assets and ‘greening’
crucial as companies look to decarbonize their
existing oil and gas operations. We will have to their portfolio – raises cost of capital for oil and
encourage CCUS/CCS and offer aggressive gas operators at a time when a lot of them
incentives for such an area as it is the only clean are already highly leveraged. This makes
technology capable of decarbonising major decarbonisation an indispensable aspect for oil
industrial sectors such as steel, cement, pulp and gas companies.
and paper, refining and petrochemicals. ONGC Growing focus on company’s carbon profile is
is executing the country’s first CO2 based EOR something that will be of consequence down the
project at Gandhar. The project has the potential road as it sets up to become a truly integrated 155
for sequestrating 5 to 6 MMT CO2 by the year diversified global energy conglomerate. There
2040. Drones, sensors, satellite and camera is a strong consensus within the organization
data are essential in tracking potent methane to lessen the energy intensity of our operations
emissions at oil wells and from pipelines, while while increasing portfolio exposure to non-fossil
machine learning is valuable in optimizing energy fuel related growth opportunities. Beyond our
use in refining. Use of analytics for predictive ambitious renewable energy target for ES 2040,
maintenance and energy efficiency are other the company is also looking to aggressively
possible areas of technological impact. induct technology across all facets of its
Heightened regulatory/policy pressures and business ensuring greater energy efficiency,
increasing scrutiny from the capital markets is more productivity and improving safety
 THE UNSTOPPABLE
ENERGY SOLDIERS
performance. This focus has only sharpened in exemplifies ONGC’s steadfast commitment
the wake of the COVID-19 pandemic which has to India’s energy priorities notwithstanding
reset expectations and priorities of our business. circumstantial exigencies. So, one year in,
despite the incalculable tragedy of the situation
Another threat that companies nowadays the Company today is positioned better to deal
must reconcile with is that of unforeseeable with black swan events of the future, both from
or hostile events that cannot possibly be an operational and human welfare perspective.
completely planned or prepared for – the
COVID-19 pandemic fits that description. These 6. Risks and Concerns
must be factored in as ‘out of the ordinary’
Even with the backdrop of Energy transition,
occurrences, but ones with abrupt and, more
price remains the principal risk for oil and gas
often, immediate impact. While such events may
operators. What the transition does is further
not have a standard template for response right
compound the decision making matrix for
off the bat, companies will have to draw from
capital allocation as companies must now, in
past experiences of similar events and have
all probability, also invest resources towards
in place a plan of action and resources ready.
making their portfolio lighter or more diverse
Wilful sabotage of critical energy infrastructure
depending on their expertise, future opportunity
or cyber-attacks by unlawful elements of the
set and shareholder/investor demands. Dealing
society may also qualify as hostile events that
with uncertainty is second nature for most major
threaten the stability and viability of business.
oil and gas companies – part of what makes
Although all such threats are not exactly similar
them resilient, but resetting business goals or
in nature what is common across them is
strategic priorities during a time of high volatility
their extreme disruptiveness. Response and
is a completely different challenge. Despite
mitigation efforts under such circumstances
the pressures of low prices, companies have
may require a multi-pronged and multi-agency
managed to sustain business on the back of
collaborative approach. While examples of such
steep learning following the 2014-16 slump. By
collaboration are not routine in the industry
cutting distributions to shareholders, investment
energy operators must consciously work
and operating costs, IOCs reduced the price
towards such a platform as risk and complexity
needed for cash flow to break even from USD54/
of operating oil and gas businesses amplify. On
bbl a year ago to USD38/bbl in 2021, as per
their own, companies may begin with a robust
Wood Mackenzie. But the room for squeezing
IT ecosystem, strengthened physical security at
out further efficiencies is limited as most of the
critical locations (supported by strong e-security
“fat” has already been cut from new upstream
measures) as well as a comprehensive
156 projects, says IHS-Markit in another note.
healthcare support for employees and their
Upstream capital costs are expected to be just
families. Navigating the monumental crisis
5 percent lower in 2021 compared with 2019,
that has been the pandemic has been a
but capital spending will be down 33 percent
tough experience for ONGC, but the company
over the same period. Unlike past periods of
can derive satisfaction from this challenging
price recovery, appetite for investment hasn’t
experience in the way it managed its operations
moved lock-in-step with higher cash flows as
through this disruption and maintained vital
companies carry more debt on their balance
energy supplies that supported economic
sheets and must not risk shareholder returns.
recovery. The Company’s massive crew change
Also, an uncertain demand outlook worsened
operation – Operation Nishtha - in the middle of
by the prevalence of COVID-19 means that there
the pandemic to ensure uninterrupted operation
are definite downside risks to current prices.
 ANNUAL REPORT
2020-21
Domestically, what concerns ONGC is the carbon ecosystem, the verdict for more oil is
extremely low gas prices for bulk of our quite extreme – Wood Mackenzie in AET-2 case
production. Further, domestic gas price effective sees oil demand declining by 70 percent to 35
from 01 Oct’20 dropped to an all-time low of million bpd by 2050 with Brent prices anywhere
USD1.79/MMBtu and remains at the same between USD10-USD18 a barrel. While these
level for H1 of the ongoing Fiscal. The fact are merely forecasts right now and much
that our project pipeline is quite gas-rich – with depends on how actually leading countries or
breakevens in the USD5-USD9/MMBtu range - regions or economic blocs like EU move ahead
further impinges on our future cash flows. We with implementing their COP-21 commitments
are hopeful that the setting up of the online and their own internal Net-Zero goals/policies,
gas hub - India Gas Exchange - is the first step recent announcement by major countries such
towards liberalising prices and moving away as US’ emission reduction by 50 percent by 2030

Management Discussion and Analysis Report

from the current formula which is a derivative of (from 2005 levels) and China’s 2060 Net-Zero
international gas-rich and liquid hubs that do not target are clear indicators of a future that will be
really reflect the reality of our domestic market. different, one where oil and gas demand would
ONGC has acquired 5 percent equity in Indian have peaked and the mere point of difference
Gas Exchange as strategic investment after the could just be the timeline. While India could be
Board approval. In keeping with the Company’s one of the very few countries where demand
strong expectations of Gas’ increasing could still be growing beyond the average global
importance within the energy ecosystem and its peak year, it will still feel the impact in terms of
salience as cleaner fuel of the future, the Board lower oil and gas prices, negatively affecting
has approved creation of a new wholly owned the profitability of its oil and gas industry,
subsidiary Company for Gas & LNG business especially upstream.
value chain subject to necessary approvals.
Globally, exploration has been hit the hardest
The Company is being formed with the focus
in this difficult period. In 2011-2015, the Majors
on sourcing, marketing and trading of natural
together spent an average of USD16 billion a
gas, LNG, Hydrogen enriched CNG (HCNG),
year on exploration and appraisal. The collapse
Gas to Power business, bio-energy/bio-gas/bio
in oil prices in 2015 led to financial pressures
methane/other bio fuels business.
and capital discipline that hit exploration hard.
A bearish demand scenario is another real risk Wood Mackenzie reports spend shrank by two-
to the continued market worthiness of oil and thirds, dipping to just USD5 billion in the crisis
gas companies – this relates more to oil than of 2020. While exploration has responded by
gas as the latter is projected to register growth becoming more efficient in identifying survey
because of it being lower on carbon emissions and drill-locations, the consequences of 157
as well as its ability to switch with coal in the continued under-investment, sooner or later, will
power business as the baseload supply. The show up in a depleting reserve base, eventually
expanding LNG business also supports its impacting the supply pipeline.
global reach, and with the emerging concept
of ‘green LNG’ it will gain traction even among ONGC, as the premier E&P NOC, however,
the more climate-forward regions of the world. continues to aggressively pursue exploration
Under IEA’s STEPS of WEO 2020, gas demand programs to maximize its reserve base as
grows at CAGR 1.2 percent during 2019-40, well as to augment the country’s prospective
while oil registers a measly annualised growth hydrocarbon-bearing areas. This means
rate of 0.3 percent. Under more aggressive a combination of near-field appraisal and
scenarios where world transitions faster to lower conventional wildcats. During FY’21, we made
 THE UNSTOPPABLE
ENERGY SOLDIERS
10 oil and gas discoveries with a 2P reserve of the pandemic on societies and economies
accretion of 50.31 MMTOE with an RRR of 1.19. will weigh on fiscal positions that governments
Given the significant untapped potential of our assume largely in terms of how they choose to
basins, there is an understandable need to focus tax or incentivize the oil and gas sector. On the
on relatively less explored and new frontiers policy front, a worrying trend in recent years is
(HP-HT/Fractured Basement/Gas Hydrates) as the increase in restrictions on upstream activity
well. However, these are operationally complex as governments move to adopt more climate-
and technology-intensive ventures which merit friendly approach and commit to aggressive
strong fiscal incentives lacking which they do emission containment targets. Stability of
not make a sound economic case, particularly sovereign systems is of particular importance
in a volatile price regime. Beyond operational to ONGC in relation to its exposure to overseas
and technological complexity of exploring in markets through ONGC Videsh’ participation.
these areas, the Company also runs the risk
It is important to note that hydrocarbons will
of running into unplanned delays on account
remain relevant for decades, and although it is
of environmental issues like MoD, Wild Life,
necessary that Oil and gas improve their safety
Eco-Sensitive Zones, etc. where mandatory
and sustainability record envisioning a cleaner
clearances are required and issues related
future, this should not translate to an absolute
to State Boundary Dispute for exploration. As
disregard of the sector’s enduring utility and
such, for a strategic and economically sensitive
invaluable role in the making of modern societies
sector like oil and gas a single window clearance
as we know them. This will mean more meaningful
system may be expedited to facilitate prudent
and regular engagement with stakeholders,
utilisation of resources and enable timely
greater transparency and exuding a spirit of
delivery of results.
innovation and collaboration in its everyday
Geopolitical dynamics and the changing nature business. At ONGC, we have always cultivated
of sovereign regulatory and fiscal regimes are a lasting relationships with all our stakeholders
veritable source of risk for upstream operations – be it our shareholders, channel partners, the
– the intensity of which may further heighten in community, investors or the government. Going
a post-COVID world given the varying levels of forward, we will consolidate these ties further
resource-sufficiency and economic vulnerability and keep channels of communication open
across countries. What may set off a shift in at all points in order to chart a way through
geopolitical landscape in near-term is the change this complex yet exciting period of change.
in the US administration which essentially means Beyond excellence in our operational efforts
a pivot away from past policies of engagement and sustainability initiatives, we are constantly
158 as well as strategic priorities. The evolving and making a tangible impact through our CSR
undulating nature of US-China-Russia relations programs as well. ONGC’s pandemic-related
on the global arena will be a key metric in community outreach and support exercises
gauging how markets may be affected. Besides, around all our operational areas is a wonderful
there is the matter of the petroleum-rich and example of that.
influential Middle-East, historically fraught region Closely tied to the ‘perception’ issue for oil and
with competing priorities and alliances. The gas is the risk of Human Capital. While in the
Saudi Arabia-Russia collaboration in terms of past the human resource risk was synonymous
OPEC+ supply management and the possible with the ‘Big Crew Change’ which meant a loss
return of sanctioned Iranian barrels will also of valued experience, now that has combined
have an impact on prices and overall supply with the possibility of not attracting enough
situation. Moreover, the devastating impact talent into the sector as well. This is a serious
 ANNUAL REPORT
2020-21
obstacle for a technology-intensive sector where brought in a need to reassess the risk profile of
the pool of expertise is already limited. However, some of the proposed investments.
diversification and technology-integration could
ONGC remains committed to expand its
not only ease people requirements of companies
production from both domestic and overseas
but may be useful to get the younger generation
operations to 110 MMTOE by 2040. However
to join this vital industry by offering a different
the challenges posed by pandemic and the
value proposition.
low price regime particularly for gas makes
Operational safety is a high-risk element for most production from difficult plays like HP-HT and
upstream operations. In fact, along with Safety, Ultra deep water a daunting task. ONGC is in
current industry emphasis on Sustainability the process of sourcing new technologies and
requires companies to adopt a more holistic partnerships for harnessing these fields as it
approach through a well-designed and strong remains focussed on shorter business cycles.

Management Discussion and Analysis Report

HSE framework. With future operations, at least
domestically, moving to more difficult terrains with In Downstream, the company is well poised to
challenging geologies, the centrality of Safety expand its capacity through the expansion and
cannot be over-emphasized at this point. ONGC Greenfield activities in progress at its subsidiary
has implemented updated OISD Standards units. The company is also expanding its
to improve contingency combat capabilities. footprints in CGD & regas through group entities
International underwriters have rated ONGC’s and has presence in 20 GA’s across 9 states. A
offshore assets under ‘acceptable risk’ enabling 5 MMTPA LNG regasification terminal at Chhara
a lower-than-peer insurance premium for these port (Gir Somnath District) in Gujarat is under
assets. implementation.

We have set a timeline till 2025 to also achieve a

Energy Strategy 2040
strategic restructuring of the group businesses
ONGC had adopted Energy Strategy 2040 as keeping in mind internal synergies and best-
its strategic blueprint for future in 2019. ‘Energy case scenario for growth. A beginning in this
Transition’ was one of the fundamental drivers respect has already been made with OMPL
of the roadmap and, going along, it is clear that becoming a 100 percent subsidiary of MRPL. A
this transition is going to play an increasingly separate entity focused on Gas has already been
stronger role in charting out the future policies approved by Board in view of the remarkable
and strategies. business opportunity that this space presents,
Government’s priority focus and ONGC’s
The damage caused by COVID-19 has only
strategic fit as a proven player in the domestic
underlined the message that future is going
energy arena. 159
to be vastly different from the past for us in oil
industry.
7. Outlook
COVID-19 has not in any way constrained the
Driven by a strong core business with exemplary
organization’s ambitions for transformation into
exploration performance and proven production
a future-ready entity with strong presence across
capabilities, ONGC is positioned well for further
the gamut of energy business, focused on
growth by making new headways in its legacy
sustainability and meaningful value-creation. It
areas while improving its technology and
has, in fact, reinforced the desire and brought in
sustainability edge. Solid core business results
a sense of urgency for its early implementation.
backed by steady cashflows also provide the
While the goals in each of the growth areas
company with the necessary buffer to venture
remain unchanged but the pandemic has
 THE UNSTOPPABLE
ENERGY SOLDIERS
meaningfully into newer energy opportunities as The strategic change to play based concept is
part of its transformation into a truly integrated primarily to assess the maximum YTF resource
and sustainable energy behemoth. Not only do potential and enhance the reserve base of the
we have the largest exploratory acreage holdings company. Based on the success, leads and the
in the country, we also are making continuous failures encountered so far in various basins,
efforts to create a commercial play in newer each operating areas are being evaluated
and frontier areas. Over the last few years, we expeditiously. Recent exploratory breakthrough
have brought more and more discoveries into in terms of finding hydrocarbon in Bengal basin,
the production stream quicker as well as made commercial flow of hydrocarbons in Vindhyan
solid contributions to national E&P missions. In basin, and presence of gas within intrusive
terms of supplies, the Company has a strong in Mesozoic sequence in Kutch Offshore are
pipeline of projects – greenfield projects as well major leads to boost exploratory efforts. In
as brownfield redevelopment schemes. The Mahanadi offshore basin, ONGC has restarted
leading Maharatna E&P remains committed its exploratory campaign.
to the promising energy story of India which is
Exploration planning of ONGC in the short term
reflected in the size of its annual investments
will be more focused on three broad elements:
in the sector, dividend payouts to shareholders
and employment generation, among others. • Play Consolidation and Field Growth
in mature basins like Western offshore,
Presented below is a brief overview of our current
Western onshore, A&AA, KG and Cauvery
exploration status as well as efforts in emerging
and Rajasthan Basin.
areas and production enhancement efforts.
• Emerging Plays: Bengal onland, Kutch-
A. Exploration
Saurashtra and Vindhyan Basins,
The COVID-19 pandemic severely affected Mahanadi and Rajasthan Basin.
exploration activities due to supply-chain and
• Play openings in Basins like Andaman,
logistical constraints over the past one year.
Cuddapah, Narmada, Spiti-Zanskar, and
Despite best efforts to pursue mandated targets
Ganga-Punjab-Himalayan Foreland Basin
while adhering to SOPs, the overwhelmingly
having Hydrocarbon Resources.
unprecedented nature of the situation and
the need to accord primacy to the safety Exploratory efforts in three categories of Indian
of individuals above everything else meant Basins for the next five years includes acquisition
performance was less important relative to past of 8,984 GLK of 2D Data, 34,171 Km2 of 3D data
years. Still, FY’21 exploration record makes for and drilling of 543 wells in next five years with
160 impressive reading given the overall context: envisaged 3P In-Place accretion to the tune
ONGC met 50 percent of its 2D seismic data 895 MMtoe with an estimated investment of
acquisition target, overachieved (137 percent) `420.15 billion.
its 3D data acquisition and drilled 90 percent of
Exploration Acreage & Mining Lease
targeted wells (100 nos.). But, the pandemic has
led ONGC to seek Force Majeure in most of its ONGC holds the largest exploration acreage
operated PSC/RSC blocks. of 1, 25,017 Km2 in India as an operator as on
ONGC has adopted a ‘Play Based Exploration’ 31.03.2021. It includes 7 Nomination PEL blocks
approach to accelerate the exploration (5106.05 Km2), 356 Nomination PML blocks (Long
activities from prospect focus to play focus. Term: 329 and Short Term (7 year): 27) having an
acreage area of 52,519 Km2 and 1 Pre-NELP
 ANNUAL REPORT
2020-21
block (892.0 Km2). In NELP regime, has 15 active During FY 2020-21, ONGC has monetized
NELP blocks comprising 16962 Km2 of PEL area 12 discoveries in different categories.
and 12 PMLs carved out from NELP blocks with
With the monetization of Ashoknagar-1
an acreage area of 1551 Km2 (5 PMLs in Gujarat,
discovery, the Bengal basin became
1 PML in Andhra Pradesh, 1 PML in Tripura, 3 in
the eighth basin of India from which
shallow water and 2 deep-water PML). In addition,
hydrocarbon has commercially been
ONGC also holds 24 OALP blocks (17 on-land, 5
produced. This has resulted in up-
shallow water and 2 deep-water areas) covering
gradation of Bengal basin to Category-I
an area of 46,313 Km2 awarded till the end of
basin as per the new three tier category of
OALP-V bidding round. In DSF-II round, ONGC
sedimentary basins of India.
was awarded 5 contract areas with PML acreage
area of 947 Km2. It may also be noted that ONGC migrated to

Management Discussion and Analysis Report

PRMS (Petroleum Resource Management
Besides, ONGC as non-operator has
System) w.e.f. 01.04.2019. As on 01.04.2021,
participative interest (PI) in 2 NELP blocks
accretion of In-Place Hydrocarbons (2P),
having acreages area of 567.00 Km2 and in
from the Company operated fields in India,
3 OALP acreages covering an area of 1558 Km2.
stood at 92.37 MMTOE, out of which about
i. Exploration Performance 85 percent accretion has been due to
exploratory efforts. Total In-Place Reserve
During the year 2020-21, ONGC has Accretion (2P) during 2020-21 in domestic
notified 6 New Prospects discoveries in its basins, including the Company’s share
operated acreages. in PSC JVs, stands at 99.17 MMTOE (6.8
The presence of commercial hydrocarbon MMTOE from JVs).
in multi-layered reservoirs (Bassein, As on 01.04.2021, total In-Place
Mukta and Heera Formations) in well BS- Hydrocarbon Volume (3P) of ONGC
17-1 has opened up new area to explore Operated and JV (Domestic) Fields stands
hydrocarbons in surrounding areas. The at 9,943.33 MMTOE against 9,997.22
significant prospect discovery in B-126N-1 MMTOE as on 01.04.2020. The Estimated
will add to the existing reserve base of Ultimate Recovery (3P) at the end of FY’21
the area and will be taken up for early has been estimated at 3,366.20 MMTOE
monetization due to its proximity to the against 3,286.63 MMTOE or FY’20.
existing Mukta field. The success in the well
KGD982NA-R1-E-1 in NELP-I, Cluster-2 ii. Unconventional & Alternate sources of
PML, KG Offshore has consolidated the energy 161
Pliocene play and opened up new area
a) Shale Gas/Oil Exploration
east of proven Annapurna field in Cluster-II
PML. The oil lead in well KGD982NA-PDM- ONGC has assessed shale gas/
SH-1 in Godavari Clay formation towards oil potential in 25 blocks from 50
east of M-3 discovery has further refined nomination PML blocks identified
the understanding of the oil habitat in the for shale gas/oil exploration in the
eastern part of KG-DWN-98/2 block and country.
improved the prospectivity of Godavari
Clay formation for further exploration. During 2020-21, ONGC has
completed one dual objective
 THE UNSTOPPABLE
ENERGY SOLDIERS
well Lakshmipuram East-1 in KG Member of National Gas Hydrate
Onland with gas indication. ONGC, Program of GoI has played a
as on 01.04.2021, has completed significant role in G&G studies for
coring and other shale specific data the identification of sites for NGHP-
collection programme in 30 wells (10 01 and NGHP R&D Expedition-02
exclusive and 20 dual objective wells) and successfully completed on-
in 25 identified nomination blocks board studies. Based on the results
spread in four basins viz. A&AA, of NGHP-02, two world class gas
Cambay, Cauvery & KG Basins. hydrate reservoirs have been
discovered (Block KG-DWN- 98/5
The assessment of geoscientific data
and Block KG-DWN-98/3).
acquired, has established prospectivity
of shale oil in Cambay and KG basins. Based on the post-expedition
However, it is of a limited nature and studies and review by international
the quantity of oil flow observed in experts, the site located in KG-
these basins does not indicate its DWN-98/5 has been found suitable
commerciality. The analysis and for pilot production test during
evaluation suggest that the general NGHP-03 expedition for which
characteristics of the Indian shales are various studies like sand control
quite different from those recognized measures, well design, reservoir and
in North American shales. production simulation modelling as
prerequisite for the pilot production
b) Coal Bed Methane (CBM)
have been completed.
Of the 9 original blocks that
Potential exploitation methodologies
the company was awarded as
like sand control, well bore
part of the CBM bidding rounds
completions and Depressurisation
including nomination, the Company
techniques, various production
relinquished 5 blocks on the basis
simulation studies have been carried
of data generated from exploratory
out in collaboration with USA.
efforts and currently is operating 4
Presently, Gas Hydrate Research
blocks (Jharia, Bokaro and North
& Technology Centre (GHRTC) of
Karanpura in Jharkhand and
ONGC is involved in R&D activities in
Raniganj in West Bengal) where
exploration for gas hydrate prospects
exploration activities have been
in Indian Deep waters and potential
162 completed. Developmental activities
exploitation methodologies for gas
are at an advanced stage in three of
hydrates through in-house efforts and
these blocks viz. Bokaro, Jharia and
PAN IIT collaborations. This institute
North Karanpura.
will also contribute to GOI’s plan
c) Gas Hydrate Exploration to commercialize Gas Hydrates as
energy resource at the earliest.
ONGC has been an active contributor
on gas hydrates exploratory research ONGC is currently gearing up for the
under National Gas Hydrate Program first ever pilot production test in deep
(NGHP) of Govt. of India since its waters for gas hydrate. The proposal
inception in the year 1997. So far, for carrying out LWD/Coring has
ONGC, as a NGHP Consortium been sent to DGH for consideration
 ANNUAL REPORT
2020-21
of the Technical Committee. e) Exploration in HP-HT & Tight Reservoir
These additional sites would help
HP-HT and Tight reservoirs have been
identify a suitable site for pilot
an exploration and development
production test(s).
challenge for your company. ONGC
ONGC has signed MoU with initial is striving hard in the field of HP-HT
validity of five years on 02.03.2021 due to bore hole complications, fluid
with The Skolkovo Institute of Science design, high-cost drilling technology
and Technology (Skoltech), Moscow including HP-HT cementing, well
for Collaborative Studies to establish construction and other reservoir
cooperation in the Gas Hydrate engineering problems. Apart from
Research & Technology applicable to these challenges, ONGC has
Indian Basins. successfully established hydrocarbon

Management Discussion and Analysis Report

in Bhuvnagiri, Malleswaram,
d) Basement Exploration
Periyakudi, Kottalanka, Bantimulli
Concerted efforts for Basement South, Yanam shallow offshore, GS-
exploration- a frontier exploration play, OSN-2004, G-4-6 and certain areas
has been taken up by ONGC as a of Assam Arakan Fold Belt.
major initiative. ONGC has registered
These plays are being targeted
success in Mumbai Offshore, Kutch
mainly in KG, Cauvery, and Western
offshore, Cauvery, Cambay, and
Offshore Basins where such
A&AA Basin and production is being
environment have been encountered
taken in Mumbai Offshore, Cambay,
during exploration for deeper pays.
Assam & Assam Arakan and
These plays have been an exploration
Cauvery Basin.
challenge for drilling, as well as for
During the year 2020-21, a total testing. During 2020-21, three wells
23 wells were drilled for Basement viz. Akanvaritota-1, Pendurru West-
by ONGC (15 exploratory and 08 1 South Velpuru-2 are under testing
development wells). Out of 23 wells whereas well Bantumili South-4 was
drilled, 14 wells are hydrocarbon completed as a dry well with gas
bearing (5 exploratory and 9 indication. As on 31.03.2021, one
development wells) and two wells well Tundurru-1 is under drilling in
are under drilling yet to be tested KG Basin.
as on 01.04.2021.Besides several
B. Development of new fields 163
G&G Interpretation projects on
Basement fracture characterization On the production front, while legacy fields
in Narsimhapuram - Kovilkalappal- continue to be the mainstay of our base
Thiruthuraipundi-Tulsapattinam area production, there is significant traction on
of Cauvery Basin and in South of the development of new fields as well as
Mumbai High PML and adjoining new schemes for maximizing recovery in
B-119-121 ML area were also mature areas.
attempted including Static modelling
of Madanam Basement reservoir.
 THE UNSTOPPABLE
ENERGY SOLDIERS
India’s demand curve, in terms of oil and gas, submitted a total of 23 EOR proposals, of
is not likely to peak at least in the next 20 years which 16 were approved by DGH. Results of
as there is significant room for improving energy ONGC’s Pilot polymer flood project in heavy
access as well as quality of life for the country’s oil field of Mehsana, a first, are quite positive.
population, one that is young and urbanizing. The incremental gain is 5057 m3 versus FR
Energy demand is likely to see a significant envisaged gains of 4960 m3. The preparation
uptick even in semi-urban and rural areas as the of commercial plan is under progress which
economy industrializes and fruits of that growth envisages incremental oil gain of 1.85 MMt
reach beyond the urban locations. This makes (~5 percent over BAU) and recovery of 22.5
ONGC’s supply outlook a critical lens through percent by 2040. Over the years, ONGC has
which one can look at the country’s energy also injected vast resources into its several
security situation years from now. brownfield re-development projects. In all, 32
IOR/EOR projects, of which 27 are completed
ONGC is cognizant of the role it assumes in
and 5 are currently under execution, are
the national energy landscape. It has made
estimated to realize over 200 MMT of oil over
cumulative core E&P spends of over `1,500
their lifecycle. Incremental supplies, accruing
billion over the past 5 years.
from these efforts, accounted for over 30 percent
As on 01.04.2021, 15 major projects are under of our standalone domestic oil output.
implementation with a total projected cost of
around `605,015 million with envisaged gain of 8. Internal Control Systems
~113 MMTOE. Among these is ONGC’s mega To manage this large portfolio, ONGC has
offshore deep-water project in East Coast, institutionalized robust internal control systems
Cluster-2 Development of KG-DWN-98/2, which to continuously monitor critical businesses,
produced its first gas in March 2020.Subsequent functions and operations; particularly field
plans of ramping up output from the project’s operations.
U1 field have, however, been impacted by the
global disruptions in the wake of the pandemic The top management of ONGC monitors
as that delayed the arrival of critical subsea and reviews various activities on continuous
components necessary for bringing the field basis. A set of standardized procedures have
into production. The second wave of COVID-19 been established for all the facets of activities
in India has also forced shutdowns in fabrication to ensure that best practices are adopted
yards on multiple occasions in past one year and these percolate even up to ground level.
or so. Hooking up of subsea hardware, earlier Performance of every business unit is monitored
planned by end April 2021, has now shifted to by the respective directorates for suitable
164 corrective measures, if any, in time.
later in the year, post which we commission
U1 field of KG-98/2. Barring any further rupture
ONGC has a dedicated Performance
to the supply chain, natural gas output from
Management and Benchmarking Group
KG Basin should significantly increase in the
(PMBG) which monitors the performance of
coming months.
each business unit against the Key Performance
Further, supported by Government’s policy Indicators (KPIs) defined in the Performance
initiatives, ONGC is strongly pursuing improving Contracts between the top management and the
recovery from existing areas through in- Key Executives. These performance contracts
house innovation, technology induction and are aligned to the goals and objectives of the
collaboration with global experts. Under the organization.
Enhanced Recovery Policy of GoI, ONGC had
 ANNUAL REPORT
2020-21
As part of its push for systemic transformation safety guidelines prescribed by OISD as well
and strengthening of control systems, as DGMS. HSE teams are also responsible for
ONGC has placed adequate emphasis on obtaining necessary licenses and clearances
institutionalization of tools, practices and from the State Pollution Control Boards.
systems that facilitate greater operational
All transactions in the company are carried out
efficiencies and workplace productivity. The
on SAP R/3 ERP based business portal. Proper
‘Integrated Material Management Manual’ of
and adequate system of internal control exists
the Company has been revamped to ensure
to ensure that all aspects are safeguarded
procurement of quality materials and services
and protected against loss from unauthorized
and identification of world-class vendors. ‘Book
use or disposition and that each transaction is
of Delegated Powers’ (BDP) was revamped with
authorized, recorded and reported. The system
the objective to empower working level officers
further ensures that financial and other records

Management Discussion and Analysis Report

and to place commensurate accountability
are fact-based and reliable for preparing the
on all decision makers and the same is being
financial statements.
reviewed periodically to align with business
needs. ONGC has also introduced E-Grievance Outcome Budget Analysis: ONGC has
handling mechanism for quick redressal of established the linkages of budget expenditure
grievances of its various stake-holders. with anticipated outcomes to have clear sight on
the future growth orientation parameters. Survey
Occupational health, safety and environmental
and Exploratory Drilling Expenditure is linked
protection are the adopted motto of your
with the target of Reserve Accretion along with
Company. Achieving highest standards
analysis of past trend of the outcomes based
in these areas remains a priority for your
on these expenditure. Reserve Replacement
Company. Internal and external audits have
Ratio trend inclusive of the Budget targets is
been institutionalized and are conducted on
also made part of the analysis. Expenditure
a continuous basis to ensure compliance to
proposed in Budget towards Development
various industry norms and benchmarks.
drilling and creation of Capital Facilities is co-
ONGC has dedicated Internal Audit (IA) group related with the incremental gain in Oil and Gas
which carries out audits in-house. At the same production targets for next 5 years. Some of the
time, based on requirement, specialized other parameters included for outcome budget
agencies are engaged to carry out audit in analysis are profitability variation analysis,
the identified areas. Statutory auditors are budgeted Balance Sheet and Cash Flow,
appointed by Comptroller and Auditor General sensitivity analysis on profitability and cash
(CAG) of India for fixed tenures. flow as a result of changes in Crude Price and
165
Exchange Rate.
Third party safety audits are conducted
regularly for offshore and onshore installations 9. Human Resource Development
by established national and international HSE
agencies such as Oil Industry Safety Directorate Every organization and industry rely significantly
(“OISD”), an organization under the control of on the talent, resilience and drive of the people
the MoPNG, which issues safety guidelines. that run them. While the scale and physicality
Further, subject to the safety regulations of oil and gas operations necessitates a major
prescribed by the Directorate General of Mines role for machines and tools, eventually, the
and Safety (DGMS), each work center has efficacy and the potential for success of efforts
teams dedicated to HSE, which execute the is largely determined by the ingenuity and
application of human knowledge and discretion.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Even in a technology-centred post-pandemic up decision making and fostered organization-
ecosystem ‘people’ will remain central to the wide collaboration while improving transparency
evolving discourse on progressive workplaces at all levels. At the same time, in view of the
and future-ready business frameworks. In fact, changing priorities and goals of the new-age
one of the most compelling revelations of this workforce, the Company has also emphasized
monumental disruption has been the sheer on a holistic view of employee well-being. To
adaptability and resourcefulness of employees that end, in addition to taking concrete steps
across all functions and disciplines. ONGC to ensure physical health of our people, we are
has always prided itself on its talented and also prioritizing mental and emotional health of
passionate workforce – in an industry that is ONGCians towards nurturing a more inclusive
high-risk and capital-intensive, we acknowledge and humane work-culture. The endeavors of
and understand the impact of motivated and your Company, towards Human Resource
committed individuals on the outcomes of development, are well recognized in the industry
business endeavours and strategic decisions. with ONGC being ranked 377th in the Forbes
That ONGC successfully managed its World Best Employers list 2020.
operations and delivered critical volumes of
energy even through the worst of the pandemic 10. Corporate Governance
in the past two years is a sterling example of the The initiatives taken by ONGC are detailed in
monumental commitment and single-minded the Corporate Governance report, a part of the
drive of ONGCians in our pursuit of energy Annual report.
security for the country. Going forward, ONGC
11. Corporate Social Responsibility (CSR)
is committed to harnessing the enormous
potential of its talent base as it pivots to emerge Initiatives taken by ONGC towards CSR are
as a stronger and more integrated energy entity detailed in the Board’s Report.
of the future. Continuous capability development
12. Cautionary Statement
while allowing for personal growth and learning
will be a mantra for grooming tomorrow’s Statements in the Management Discussion and
energy soldiers of the company. The inevitability Analysis and Directors Report describing the
of Energy Transition and the pervasiveness of Company’s strengths, strategies, projections
technology in our day-to-day work environment and estimates, are forward-looking statements
also calls for a novel approach towards training and progressive within the meaning of applicable
and knowledge building. Since the pandemic, laws and regulations. Actual results may vary
the Company has seamlessly transitioned to a from those expressed or implied, depending
completely digital way of learning and training upon economic conditions, Government
166 – effectively enabling a wider access among its Policies and other incidental factors. Readers
employees to the latest learnings and trends are cautioned not to place undue reliance on the
within the sector. Technology has also sped forward looking statements.
 ANNUAL REPORT
2020-21

Management Discussion and Analysis Report

167

Aerial view of an onshore exploratory rig at work in Silchar, Assam

 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Corporate Governance Report

168 169

Corporate Governance Report 170

Certificate on Corporate203
Governance Compliances
 THE UNSTOPPABLE
ENERGY SOLDIERS

Corporate Governance Report

Corporate Governance involves a set of relationships Governance’ stated under the SEBI (Listing
between a company’s management, its Board, its Obligations and Disclosure Requirements)
shareholders and other stakeholders. Corporate Regulations – 2015 (Listing Regulations),
Governance also provides the structure through as under:
which the objectives of the company are set and the
means of attaining those objectives and monitoring A. Rights of Shareholders
of the same. The Company has taken all necessary
Corporate governance implies the way in which steps to protect the Rights of Shareholders
a company is managed to ensure that all of its and seeks approval of the shareholders as
stakeholders get their fair share in its earnings and and when required as per the provisions
assets and disclosure of all material information. Good of the Companies Act, 2013 or other
corporate governance involves the commitment of a applicable legislations.
company to run its businesses in a legal, ethical and The Company issues press releases
transparent manner. regarding the important events and the
same are submitted to Stock Exchanges
1.1 Corporate Governance philosophy of ONGC
for information of the valued investors.
• Compliance of laws, rules and regulations
The Annual Report and the Notice of the
in letter and spirit in the interest of
Annual General Meeting (AGM) explain
stakeholders
exhaustively the procedures governing
• System of risk analysis and measures the AGM, voting procedures etc. Sufficient
to minimize/ migrate through risk opportunity is provided to the shareholders
management to raise queries pertaining to accounts,
• A sound system of internal control to Company’s future prospects etc. to the
achieve business objectives, in short, Board of Directors and are clarified by the
medium and long term Directors at the meeting.
• Adherence to ethical standards for effective The Company has a Board level
management and distribution of wealth Stakeholders’ Relationship Committee
and discharge of social responsibility for which meets periodically to redress
sustainable development of stakeholders the grievances of shareholders. The
170 • Clearly defined standards against which shareholders have the facility of directly
performance of responsibilities are approaching the Company as well as the
measured Registrar and Share Transfer Agent (RTA)
• Accuracy and transparency in disclosures to address their queries/ grievances, which
regarding operations, performance, risk are generally addressed within a fortnight.
and financial status Interests of the minority shareholders
• Timely and balanced disclosure of all are protected and there was no
material information to all the Stakeholders instance of abusive action by controlling
1.2 The Company has ensured compliance with shareholders.
the objectives of ‘the principles of Corporate
 ANNUAL REPORT
2020-21
B. Timely information the policies, rules, regulations, guidelines,
directives mandated by the Government
The Company sends notices through email
of India.
to all shareholders who have provided
their e-mail id with the Company and/ For effective participation in Corporate
or depository participants in addition to Governance, the Company disseminates
communication on its website. various announcements from time to
time through stock exchanges filings,
Further, Company encourages investors
newspapers, Company website and other
to register their email ID to receive
media to the stakeholders concerned.
communications including annual report
via email. Further, the Company is covered under
the provisions of Right to Information Act,
The Annual Report of the Company is
2005 and it provides all information to the
compiled exhaustively to provide every
citizens of India as provided under the Act.
conceivable information on the functioning
The Company has a Vigilance Department
of the Company.

Corporate Governance Report

which is headed by an officer on deputation
The website of the Company is updated from the Government of India in the rank of
continuously to keep the stakeholders Joint Secretary or above.
informed of various developments The Company has implemented a Whistle
including Notice of General Meeting, Blower Mechanism which gives opportunity
Annual Reports, quarterly results, dividend to the directors and employees to raise any
information and other statutory information. concern of unethical or illegal or immoral
activity occurring in the Company.
C. Equitable treatment

All the equity shareholders are treated E. Disclosure and transparency

equitably - irrespective of their location. For The Company ensures timely and
effective participation of the Shareholders, complete dissemination of information on
Company dispatches the notice for General all matters which are required to be made
meeting to Shareholders well in advance. public. The website of the Company and
Further, the E-voting facility is provided to the Annual Report of the Company contain
all Shareholders. Simple and inexpensive exhaustive information regarding different
procedures are adopted to cast vote aspects of the functioning, financial health,
electronically. ownership and governance practices of
the Company. 171
D. Role of Stakeholders in Corporate All disclosures are made by the Company
Governance in the formats as prescribed under
The Business Responsibility Report of relevant enactments/ regulations in
the Company carries an exclusive section respect of accounting, financial and
spelling the steps being taken by the non-financial matters.
Company in this regard. The Company, The Company disseminates information
being a listed Public Sector Enterprise, through press releases, official website
conducts and governs itself with Ethics, and/or through the Stock Exchanges and
Transparency and Accountability as per law access to all these modes are free for
of the land and ensures compliance of all all users.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The Company maintains minutes of the Independent Directors as required are
proceedings of all meetings (Board/ Board being carried-out by the Government of
Level Committees/ General meeting) as India as per its own internal processes and
per the Secretarial Standards prescribed that the Board of the Company has no role
under the Companies Act, 2013. The to play in this regard.
minutes are being maintained explicitly
The Agenda Items, circulated in advance to
recording dissenting opinions as stipulated
the members of the Board, are exhaustive
under law.
in nature. Further, presentations are made
F. Responsibilities of the Board of Directors during the course of discussion wherever
required for the information of the directors.
Article 95 of the Articles of Association of Independent Directors are provided all the
the Company provides that the business relevant information to ensure that the
of the Company shall be managed by the interests of the minority shareholders are
Board of Directors. However, based on the protected. Every agenda is discussed in
organizational requirements for day-to- detail before necessary decision is taken.
day operations the Board of Directors has Committees of the Board deliberate upon
approved a Book of Delegated Powers proposals circulated as per the terms of
(BDP) and other manuals like Material reference of respective Committee.
Management, Works manual etc., which
spell out the processes and define the The Board regularly monitors the Action
level (Executive Committee/ Whole-time Taken Report on its decisions. Risk areas
Director/ Key Executive and below) at are outlined and mitigation processes are
which any decision is to be taken and the put in place.
said BDP and other manuals are reviewed The terms of reference, quorum, periodicity
from time to time to ensure that they of meeting etc. are clearly defined for each
are updated and meet the needs of the of the Board Committees, and approved
organization. by the Board.
The Board members as well as Key The Board members disclose from time
Managerial Personnel are required to to time all the required information to the
declare their interest in all contracts and Board. The Board performs key functions
their shareholdings etc. which are noted by by fulfilling the responsibilities for achieving
the Board. The Company ensures that all economy, efficiency and effectiveness
related party transactions are carried out for Company vis-à-vis shareholders’
172 as per statutory requirements. value creation.
The Company being a Central Public Directors are nominated for various
Sector Enterprise (CPSE), all the Directors training programs conducted by reputed
are appointed/re-appointed based on organizations/ bodies including DPE,
nomination by the President of India, SCOPE and CII from time to time. However
through the Administrative Ministry. The due to prevailing Covid-19 pandemic
evaluation of the performance of the situation there very few such programmes
Directors and the Board including the notified to the Company during the year.
fulfilment of independence criteria of Hence, no nomination was made for such
programmes.
 ANNUAL REPORT
2020-21
1.3 Corporate Governance Recognitions Directors are, therefore, nominated/
decided by the Government of India.
The Company’s Corporate Governance
practices have secured many accolades from As on 31.03.2021, there were 10 Directors,
Indian Chamber of Commerce, Institute of comprising of 7 Executive Directors
Directors and Institute of Company Secretaries (including the Chairman & Managing
of India. The Company continues with the spirit Director) and 3 Non-Executive Directors -
of Corporate Governance in every sphere of 2 Government Nominee Directors and 1
its activities. Independent Director.

2. Board of Directors There was one Independent Woman

Director till 07.09.2020. The composition of
2.1 Composition the Board was not in line with requirements
The Board of Directors of the Company of Listing Regulations and accordingly the
ensures the Company’s prosperity by Company has been requesting the MoPNG
collectively directing the company’s affairs, from time to time for appointment of

Corporate Governance Report

whilst meeting the appropriate interests of requisite number of Independent Directors
its shareholders and stakeholders. The to fill the vacancies.
Chairman & Managing Director (CMD) As required under Regulation 46(2)(b)
and Six Whole-Time Directors viz. Director of the Listing Regulations, the terms and
(Finance), Director (Offshore), Director conditions of appointment of Independent
(Human Resource), Director (Exploration), Directors are available on the Company’s
Director (Technology & Field Services) website at web-link https://www.ongcindia.
and Director (Onshore) are the whole com/wps/wcm/connect/en/investors/
time Directors who spearhead the day independent-director/
to day operations of the Company, the
strategic decision(s) are under the overall 2.2 Matrix providing the skills/expertise/
supervision, control and guidance of the competence of the members of the
Board of Directors of the Company, which Board
includes Government Nominee Directors The Board of the Company comprises of
and Independent Directors. qualified members who bring in the required
The Company is a Government Company skills, competence and expertise that allow
under the administrative control of the them to make effective contributions to
Ministry of Petroleum and Natural Gas the Board and its Committees. The Board
(MoPNG), Government of India, the of Directors ensures highest standard of 173
Corporate Governance.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The skills/competence/expertise matrix of the Board of Directors of the Company is summarized as under:

Sl. No. Skills/Expertise/Competence Description

1. Organizational leadership Experience/Exposure of leading Public/Private/Government
organisation/division
2. Managerial competence Experience/Exposure in respective area of expertise including
management of human resources to uphold the highest
standard of professional specialisation and commitment
3. Finance including corporate Knowledge/Exposure/Experience in management of finances of
finance organisations
4. Core business competence Knowledge/Expertise/Experience in the core business of the
Company and ability to adapt with technological developments
5. Environmental, Social and Knowledge/exposure to Environmental, Social and governance
Governance (ESG) domain
6. Planning, budgeting and project Strategic Planning and budgeting experience of the macro level
experience and experience in implementation of Projects/Schemes

Further, in line with the requirement of Schedule V paragraph (c) sub-paragraph (h) clause (ii) of the Listing
Regulations, the skills/competence/expertise matrix of the Directors/ as on 31.03.2021 is as under:

Area of Expertise
Sl. Name of Organisa- Manage- Finance Core Environmental, Planning,
tional rial including Business Social and budgeting
No. Director
leadership Compe- Corporate Competence Governance and project
tence Finance (ESG) experience
1. Shri Shashi
Shanker*
Chairman & √ √ √ √ √ √
Managing
Director
2. Shri Subhash
Kumar$
√ √ √ √ √ √
Director
(Finance)
174 3. Shri Rajesh
Kakkar#
√ √ √ √ √ √
Director
(Offshore)
4. Dr. Alka Mittal
√ √ √ √ √ √
Director (HR)
5. Shri Rajesh
Kumar
Srivastava@ √ √ √ √ √ √
Director
(Exploration)
 ANNUAL REPORT
2020-21

Area of Expertise
Sl. Name of Organisa- Manage- Finance Core Environmental, Planning,
tional rial including Business Social and budgeting
No. Director
leadership Compe- Corporate Competence Governance and project
tence Finance (ESG) experience
6. Shri Om
Prakash Singh,
Director √ √ √ √ √ √
(Technology &
Field Services)
7. Shri Anurag
Sharma,
√ √ √ √ √ √
Director
(Onshore)
8. Shri Rajesh
Madanlal

Corporate Governance Report

Aggarwal, √ √ √ √ √ √
Govt. Nominee
Director
9. Shri Amar Nath,
Govt. Nominee √ √ √ √ √ √
Director
10. Shri Amitava
Bhattacharyya,
√ √ √ √ √ √
Independent
Director
* Shri Shashi Shanker ceased to be Director w.e.f. 01.04.2021;
$ Shri Subhash Kumar, Director (Finance) has been entrusted with additional charge of Chairman & Managing Director w.e.f. 01.04.2021;
# Shri Rajesh Kakkar, ceased to be Director w.e.f. 01.05.2021;
@Shri R K Srivastava has been given additional charge of the post of Director (Offshore).

175
 THE UNSTOPPABLE
ENERGY SOLDIERS
2.3 None of the Independent Director meeting material through online process
resigned during the year. are made which results in saving paper,
reducing carbon foot-print and cycle time
2.4 Board/Committee Meetings and
to make documents available to the Board/
Procedures
Committee Members and increasing
As a good governance practice and as per confidentiality.
the guidance note issued by the Institute of
2.5 Training of Non-Executive Board
Company Secretaries of India, the Board
members
approves in advance, a tentative schedule
of the Board Meetings to be held during In line with Clause 3.7 of the Guidelines
the ensuing financial year considering on Corporate Governance for Central
the requirements under applicable laws Public Sector Enterprises, 2010, issued by
w.r.t minimum number of meetings and Government of India, Department of Public
maximum permissible time gap between Enterprises and requirement of regulation
two consecutive meetings. Additional 25 (7) of the Listing Regulations with regard
meetings are also convened to fulfil to training of Directors, the Company has
statutory and operational requirements following training policy for non-Executive
of the Company. In case of exigency Directors:
resolutions are passed by circulation as • Induction Training/ familiarization
provided under the Companies Act, 2013. program
The Company also offers video • External Training
conferencing facility to the Directors to
Non-Executive Board members are eminent
enable them to attend and participate as
personalities having wide experience in
may be permitted under law.
the field of business, education, industry,
The agenda for the meetings are circulated commerce and administration. Their
in advance for informed decision making by presence on the Board is advantageous
the Directors. However, the agenda items and fruitful in arriving at strategic
containing unpublished price sensitive decisions. The training policy of Directors
information and agenda at shorter notice and the details of familiarization/ training
are tabled at the relevant meeting of Board/ programmes organized are available at
Committee, with necessary permission web-link: https://www.ongcindia.com/wps/
of the Directors. The Company Secretary wcm/connect/en/investors/independent-
attends all the meetings of the Board and director/
176
Board Level Committees and prepares
2.6 Board meetings
minutes of such meetings.
During the fiscal 2020-21, Nine (9) meetings
The Company has developed software
of Board were held on 13.05.2020,
in-house for online Board portal, i.e.
22.06.2020, 30.06.2020, 01.09.2020,
G-Board (Green-Board), for distribution
06.11.2020.13.11.2020, 31.12.2020 &
of agenda and related documents for
04.01.2021(adjourned), 13.02.2021 and
the meetings of Board and Committees,
30.03.2021.
thereby circulation and preservation of all
The information as required to be disclosed under Schedule V of the Listing Regulations, pertaining to Board and related matters including
number of Board Meetings attended by Directors during the financial year 2020-21, attendance at the last Annual General Meeting by them and
the number of other Directorship/Committee Membership in various companies as on 31.03.2021 are tabulated below:-

Attendance by Details as on 31.03.2021

Directors No. of Committee
No. of Whether
memberships across all
meetings attended last No. of
Names and Designation No. of companies*
held during AGM held on Directorships in
meetings % (B/A) As
tenure (A) 09.10.2020 other companies# As Member
(B) Chairperson
Regulation
Regulation
a) Executive Directors
Shri Shashi Shanker, 9 9 100% Yes 7 0 0
CMD (till 31.03.2021)
Shri Subhash Kumar, 9 9 100% Yes 6 6 0
Director (Finance)
Shri Rajesh Kakkar, 9 9 100% Yes 3 1 0
Director (Offshore)
(up-to 30.04.2021)
Shri S. K. Moitra, 1 1 100% Yes N.A N.A N.A
Director (Onshore)
(up-to 31.05.2020)
Dr. Alka Mittal, 9 9 100% Yes 1 2 0
Director (HR)
Shri R K Srivastava 9 9 100% Yes 1 1 0
Director (Exploration)
Shri Om Prakash Singh, 9 9 100% Yes 2 0 0
Director (T&FS)

ANNUAL REPORT
(w.e.f. 01.04.2020)
Shri Anurag Sharma 8 8 100% Yes 2 1 1
Director (Onshore)
(w.e.f. 01.06.2020)

2020-21
177

Corporate Governance Report

 178
Attendance by Details as on 31.03.2021

ENERGY SOLDIERS
THE UNSTOPPABLE
Directors No. of Committee
No. of Whether
memberships across all
meetings attended last No. of
Names and Designation No. of companies*
held during AGM held on Directorships in
meetings % (B/A) As
tenure (A) 09.10.2020 other companies# As Member
(B) Chairperson
Regulation
Regulation
b) Government Nominee Directors
Shri Rajesh Madanlal 9 9 100% LOA 2 0 1
Aggarwal,
Additional Secretary &
Financial Advisor
Shri Amar Nath 9 8 89% Yes 1 1 0
Additional Secretary (E)
c) Independent Directors
Smt. Ganga Murthy 4 4 100% N.A N.A N.A N.A
(up-to 07.09.2020)
Shri Amitava 9 9 100% Yes 0 1 0
Bhattacharyya
#does not include directorships of foreign and private limited companies.
*Chairmanship/ Membership of the Audit Committee and Stakeholders’ Relationship Committee of Public Limited Companies (including ONGC) in line with the format of Corporate
governance report to be filed with the stock exchanges in terms of Regulation 27(2) and also keeping in view the requirement of limit of Committees under clause 26(b) of the
Listing Regulations.

Notes:

(i) The Company being a CPSE, all Directors are appointed/ nominated by the Government of India;
(ii) Directors are not inter-se related to each other;
(iii) Directors do not have any pecuniary relationships or transactions with the Company (except remuneration, including sitting fees, and
payment/reimbursement of their expenditure incurred in connection with the business of the Company, as they are entitled);
(iv) The Directorships/Committee Memberships in other companies are based on the latest disclosure received from respective Directors;
(v) None of the Director is a Member of more than 10 Committees or Chairman of more than 5 Committees, across all the companies in which
he/ she is a Director as mentioned under Regulation 26.
 ANNUAL REPORT
2020-21
Further as required under para 2 (c) of the part c of Schedule V of SEBI-Listing Regulations, category of
Directorship and name of other listed entities as on 31.03.2021 are mentioned as under :

Sl.No. Name of Director Name of Listed Entity Category of Directorship

1. Shri Shashi Shanker, • Mangalore Refinery and ONGC Nominee-Director
CMD Petrochemicals Limited
• Petronet LNG Limited
• ONGC Petro additions
Limited
2. Shri Subhash Kumar, • Mangalore Refinery and ONGC Nominee-Director
Director (Finance) Petrochemicals Limited
• Hindustan Petroleum
Corporation Limited
• ONGC Petro additions
Limited

Corporate Governance Report

3. Shri Rajesh Kakkar, • ONGC Petro additions ONGC Nominee-Director
Director (Offshore) Limited
4. Shri Amar Nath, • Oil India Limited Government Nominee-Director
Government Nominee Director
5. Shri Rajesh Mandanlal Aggarwal, • Bharat Petroleum Government Nominee-Director
Government Nominee Director Corporation Limited

179

State-of-the-Art Digital Drilling Rig, Ahmedabad Asset

 THE UNSTOPPABLE
ENERGY SOLDIERS

Equity Shares held by Non-Executive Directors

The details of the Equity Shares held by the Non- the year and attendance of the members are as
Executive Directors in the Company as per the under:-
declarations made by them are as under:
No. of Attendance by
No. of Shares held meetings Members
Name of Directors held
as on 31.03.2021 Members
during No. of
%
Shri Rajesh Madanlal Nil tenure meetings
(B/A)
Aggarwal, Government (A) (B)
Nominee Director
Smt. Ganga 4 4 100%
Shri Amar Nath, Government Nil Murthy
Nominee Director (Chairperson
Shri Amitava Bhattacharyya, Nil up-to
07.09.2020)
Independent Director
Shri Amitava 4 4 100%
3. Board Level Committees Bhattacharyya
Shri S K Moitra 1 1 100%
The Board has been assisted by adequate
(up-to
Board Level Committees (BLCs). The Company
31.05.2020)
Secretary acts as the Secretary to all the Board
Shri Anurag 3 3 100%
Level Committee(s).
Sharma
The details inter-alia, pertaining to composition, (w.e.f.
brief of Terms of Reference (ToR), meeting 01.06.2020)
and attendance of BLCs of the Company is Note:- Committee was duly constituted till 07.09.2020.
enumerated below: Since there is only (01) Independent Director w.e.f.
3.1 Audit Committee 08.09.2020, meeting could not be convened thereafter
for want of minimum 2 IDs.
ToR for Audit Committee have been approved
by the Board of Directors on taking into account 3.2 Nomination and Remuneration Committee
the requirements under the Companies Act, (NRC)
2013, Listing Regulations, and Department Based on the ToR as specified under the
of Public Enterprises (DPE) Guidelines on Companies Act, 2013, Listing Regulations,
180 Corporate Governance for Central Public Sector DPE Guidelines on Corporate Governance
Enterprises – 2010 and also the organizational for CPSEs-2010 and also the administrative
requirements. requirements of the Company, the Nomination
During the year under review, four (04) and Remuneration Committee (NRC) has been
meetings of Audit Committee were held on constituted by the Board.
13th May 2020, 22nd June 2020, 29th & Further, the Company, being a Government
30th June 2020 (adjourned), and 31st August, & Company, the appointment, tenure and
01st September, 2020 (adjourned). remuneration of functional directors are
The details of members including change, if any, decided by the Government of India. The
in their tenure, number of meetings held during sitting fees of Independent Directors were
approved by the Board as per provisions of the
 ANNUAL REPORT
2020-21
Companies Act, 2013. The role of NRC has been extended to formulate and recommend to the Board all
HR related strategy/policy matters. The remuneration of the employees of the Company including senior
management personnel is decided by the Board in line with applicable DPE Guidelines. It is mandatory
for NRC to decide the annual Bonus/variable pay pool and policy for its distribution among the employees
of the Company within the limits as provided under DPE Guidelines.

As per the notification issued by MCA, provisions of the Companies Act, 2013 relating to criteria for
appointment of Director(s), policy relating to the remuneration of Director(s) and performance evaluation
pertaining to NRC shall not be applicable to Government Companies. DPE has made a representation to
SEBI seeking similar exemption under Listing Regulations.

During the year, 2 (Two) meetings of NRC were held on 29th June and 31st August 2020.

The details of members including change, if any, in their tenure, number of meetings held during the year
and attendance of the members are as under:

No. of Meeting Held Attendance by Members

Corporate Governance Report

Members
during tenure (A) No. of meetings (B) %(B/A)
Smt. Ganga Murthy 2 2 100%
(Chairperson) up-to 07.09.2020
Shri Amitava Bhattacharyya 2 2 100%
Shri Amar Nath 2 1 50%

Note:- Committee was duly constituted till 07.09.2020.Since there is only (01) Independent Director w.e.f.
08.09.2020, meeting of the said committee could not be conducted thereafter for want of minimum 2 IDs.

3.3. Risk Management Committee

During the year, 1 (One) meeting of the Committee was held on 30.03.2021.

The details of members including change, if any, in their tenure, number of meetings held during the year
and attendance of the members are as under:

No. of Meeting Held Attendance by Members

Members
during tenure (A) No. of meetings (B) %(B/A)
Shri Amitava Bhattacharyya 1 1 100% 181
(Chairperson)
Shri Rajesh Kakkar 1 1 100%
Shri Rajesh Kumar Srivastava 1 1 100%
Shri Om Prakash Singh 1 1 100%
(w.e.f. 01.04.2020)
Shri Sanjay Kumar Moitra N.A N.A N.A
(up-to 31.05.2020)
Shri Anurag Sharma 1 1 100%
(w.e.f. 01.06.2020)
 182
3.2.1 Directors’ Remuneration

ENERGY SOLDIERS
THE UNSTOPPABLE
The details of Remuneration of Directors as required under Regulation 34(3) read with Schedule V of the Listing Regulations are as under:

a) Executive Directors
(` in million)
Details of Remuneration paid to CMD and Whole Time Directors of the Company
Details from 01.04.2020 to 31.03.2021
S. Name/ Salary Other Leave Performance Contribution Provision for Total Current
No. Designation including Benefits & Encashment/ incentive of PF Leave, Gratuity Amount tenure
DA perks gratuity on Provision/ and Post- extending
retirement Payment Retirement to
Benefits as per
revised AS-15
1. Shri Shashi 4.48 1.71 4.56 1.16 0.86 1.13 13.90 31.03.2021
Shanker, CMD
2. Shri Subhash 4.09 0.27 - 0.77 0.68 0.32 6.13 31.12.2021
Kumar
Director
(Finance)
3. Shri Rajesh 4.20 0.77 - 0.89 0.81 1.27 7.94 30.04.2021
Kakkar
Director
(Offshore)
4. Shri S K Moitra, 0.65 0.30 3.69 0.22 0.14 0.13 5.13 31.05.2020
Director
(Onshore)
5. Dr. Alka Mittal 4.62 0.22 - 0.86 0.77 0.92 7.39 31.08.2022
Director (HR)
6. Shri Rajesh 3.78 1.10 - 0.81 0.74 0.52 6.95 31.12.2022
Kumar
Srivastava
Director
(Exploration)
7. Shri Om 4.30 0.56 - 0.91 0.79 0.99 7.55 31.12.2024
Prakash Singh,
Director (T&FS)
(w.e.f.
01.04.2020)
 Details of Remuneration paid to CMD and Whole Time Directors of the Company
Details from 01.04.2020 to 31.03.2021
S. Name/ Salary Other Leave Performance Contribution Provision for Total Current
No. Designation including Benefits & Encashment/ incentive of PF Leave, Gratuity Amount tenure
DA perks gratuity on Provision/ and Post- extending
retirement Payment Retirement to
Benefits as per
revised AS-15
8. Shri Anurag 3.94 0.94 - 0.92 0.75 1.07 7.62 28.02.2023
Sharma
Director
(Onshore)
(w.e.f.
01.06.2020)
Sub Total (A) 30.06 5.87 8.25 6.54 5.54 6.35 62.61
Note:
1. Performance related pay of Executive Directors is paid as per DPE norms.
2. Notice period of 3 months or salary in lieu thereof is required for severance of services of Executive Directors.

(b) Independent Directors

Pursuant to Section 197 of the Companies Act, 2013 read with Article 110 & 111 of the Articles of Association of the Company and other
applicable provisions, Independent Directors are paid sitting fees @ `40,000/- for each meeting of the Board attended by them and `30,000/-
for each meeting of the Committee attended by them as members. Further, terms and conditions for appointment of Independent Directors is
placed at the website of the Company https://www.ongcindia.com/wps/wcm/connect/en/investors/independent-director/.
The details of sitting fees paid to Independent Directors (exclusive of GST) for the financial year 2020-21 is given below:

Name of Independent Director Sitting fees (` in million)

Smt. Ganga Murthy `0.46
(up-to 07.09.2020)
Shri Amitava Bhattacharyya `0.85

ANNUAL REPORT
Total `1.31

2020-21
183

Corporate Governance Report

 THE UNSTOPPABLE
ENERGY SOLDIERS
(c) Government Nominee Directors Dr. Alka Mittal - Director (HR)
Government Nominee Directors being the Shri Rajesh Kumar - Director (Exploration)
representatives of Promoters are neither paid Srivastava
any remuneration nor sitting fees. Shri Anurag - Director (Onshore)
Sharma
(d) Chief Financial Officer, Company Secretary
and other senior officers 3.3.1 Compliance Officer
The remuneration of senior officers including Shri Rajni Kant, Company Secretary, is
CFO and Company Secretary, just below the the Compliance Officer.
level of Board of Directors, as specified in Part
A (E) of schedule (II) of Listing Regulations are 3.3.2 Registrar and Share Transfer Agent
governed by the DPE guidelines, the same is (RTA)
approved/reported to the Board from time to Alankit Assignments Limited, is the
time and appointment or removal of CFO and Registrar and Share Transfer Agent (RTA)
CS are placed before the Board. of the Company. Contact details of the
3.2.2 Stock Options RTA are as under:-
Address: Alankit House,
The Company has not issued any Stock Options 4E/2, Jhandewalan Extension,
to its Directors/Employees during the year under
New Delhi – 110055
review.
Phone No.: 011- 42541234/011- 42541953
3.3 Stakeholders’ Relationship Committee (SRC) Fax No: 011- 42541201
ToR of SRC is in line with the requirement of Website: www.alankit.com
Regulation 20(4) of the Listing Regulations. SRC e-mails: [email protected], alankit_ongc@
also looks into various aspects of interest of alankit.com and [email protected]
shareholders of the Company. The Committee
3.3.3 Redressal of investors’ grievance
also oversees and reviews performance of
the Registrar and Share Transfer Agent and The Company addresses all complaints,
recommends measures for overall improvement suggestions and grievances of the
in the quality of investor services. investors expeditiously and resolves
them within specified timeline,
During the FY’21, 1 (One) meeting of the
except in case of dispute over facts or
Stakeholder’s Relationship Committee was held
other legal constraints.
184 on 30.03.2021.
No request for share transfer is pending
The composition of SRC is as under:
beyond 30 days except those that are
Chairperson - Shri Amitava disputed or sub-judice. All requests for de-
Bhattacharyya, materialization of shares are processed
(Independent and confirmation communicated to
Director) investors and Depository Participants
Members - Shri Subhash Kumar normally within 10-12 working days
Director (Finance) by RTA.
 ANNUAL REPORT
2020-21
Details of complaints received and report, from the shareholders and the
redressed during the financial year same were resolved to the satisfaction of
2020-21. shareholders.

At the beginning of FY’21 there were total There were Nil complaints pending
10 pending complaints, 12 complaints with Stock Exchanges and SCORES on
were received during the year which were 31.03.2021.
related to non-receipt of dividend/ annual

3.3.4 Settlement of grievances

Investors may register their complaints in the manner stated below:
SI. Nature of Complaint Contact Action to be taken
No.
1. Dividend from financial Alankit Assignments Letter on plain paper stating the nature of
years 2013-14 (Final) Limited, Account ONGC, complaint and shall mention Folio/ DPID/ Client
to 2020-21 (Interim) Alankit House, 4E/2 ID No; lodging of original shares and other

Corporate Governance Report

and matters pertaining Jhandewalan Extension, documents/ instruments as the case may be.
to Bonus Shares and New Delhi – 110055
Members are requested to apply for renewal
shares held in Physical Phone No. 011-42541234
or issue of duplicate dividend warrants for the
mode; 011-42541953
final Dividend 2013-14 and 1st Interim dividend
Fax No: 011- 42541201
For Physical shares- 2014-15 on or before 30.11.2021 and 23.02.2022
Web site: www.alankit.com
respectively as the same will be transferred by the
Change of address, e-mail: [email protected], Company to the Investor Education & Protection
status, Bank account, alankit_ongc@alankit. Fund (IEPF)* in compliance of provisions of the
mandate, ECS com Companies Act, 2013. Thereafter, claim can be
mandate etc. [email protected] made as per procedures prescribed under the
IEPF Rules issued by the Ministry of Corporate
Affairs, Govt. of India
2. For shares held in Depository Participant As per instructions of respective DP
Demat- (DP) with the Shareholder
is maintaining his/her
Change of address,
account
status, Bank account,
mandate, ECS
mandate etc.
3. Complaints of any Company Secretary On plain paper stating nature of complaint, folio/
other category Oil and Natural Gas DPID/Client ID No., Name and address, email ID
185
Corporation Ltd., and contact details
Plot No. 5A- 5B
Nelson Mandela Road,
Vasant Kunj New Delhi
-110070
Phone: 011-26754073/85
e-mail: secretariat@
ongc.co.in
* Shareholder(s) whose unclaimed or unpaid dividend amount has been transferred by the Company to IEPF
may claim the same from the IEPF Authority by filing Form IEPF-5 along with requisite documents. Further
details and procedure is available on the weblink http://www.iepf.gov.in/IEPFA/refund.html
 THE UNSTOPPABLE
ENERGY SOLDIERS
Note meets including tele-conferencing in India
and abroad, regular interactions with
For seamless payment of dividend, all Investor are
investment bankers, research analysts
requested to update their client master (maintained
and institutional investors. The Company
with DP) with correct bank details and IFSC along
is committed to take such additional
with email address.
steps as may be necessary to fulfil the
Physical Shareholder are requested to give bank expectations of the stakeholders.
mandate for transfer of dividend directly to respective
bank account. 4. Other functional/activity specific committees

Company has hosted a public notice in this regard Apart from the above, the Board has constituted
on its website https://www.ongcindia.com/wps/wcm/ other statutory Committees viz., Corporate
connect/en/investors/notices/ Social Responsibility Committee (CSR), Risk
Management Committee (RMC), Committee
3.3.5 Investor relations cell for Allotment of Securities and Issue of
Certificate (CASIC) and other non-statutory
In line with global practices, the
Committees including Project Appraisal and
Company is committed towards
Review Committee (PARC), Health Safety and
maintaining the highest standards of
Environment Committee (HSE), Committee
Corporate Governance, reinforcing the
on Dispute Resolution (CoDR), Research and
relationship between the Company
Development Committee (R&D) and Asha Kiran
and its Shareholders. The information
– a Committee for extending financial assistance
frequently required by investors and
towards emergency needs of those employees
analysts, are available on the Company’s
who superannuated before 01.01.2007.
website www.ongcindia.com under the
‘Investor’ page. The website provides 5. Independent Directors
updates on financial statements, investor-
related events and presentations, annual There were two (02) Independent Directors
reports, dividend information and at the beginning of the FY’21 and the tenure
shareholding pattern along with media of one (01) Independent Director, namely
releases, company overview and report Smt. Ganga Murthy completed on 07.09.2020.
on Corporate Governance etc. Existing Since 08.09.2020, the Company has only one
and potential investors are able to interact (01) Independent Director namely Shri Amitava
with the Company through this link. Bhattacharyya.

Shri Amitava Bhattacharyya is registered in the

186 A Core Team comprising of senior
Independent Directors Databank maintained
executives, headed by Director (Finance),
has been assigned the responsibility of with the Ministry of Corporate Affairs, Govt. of
up-keep of the said link and to serve as India. Shri Bhattacharyya has also provided
a platform for the shareholders to express disclosures to confirm meeting the requirements
their opinions, views, suggestions, of independence as per requirements.
to understand the influencing factors Based on disclosures received from
in their investment decision-making Independent Directors your board is of the
process. Besides this, the team is also opinion, the Independent Directors fulfil the
instrumental in maintaining close liaison conditions specified in these regulations and
and to share information through periodic are independent of the management.
 ANNUAL REPORT
2020-21
Meeting of independent directors 7. Compliance certificate by CEO/ CFO

Regulation 25(3) of Listing Regulations and In terms of Regulation 17(8) of Listing Regulations,
Schedule IV of the Companies Act, 2013 read the Compliance certificate issued by the CEO
with the Rules thereunder mandate that the and CFO on the financial statements and internal
independent directors of the Company shall controls relating to financial reporting for the year
hold at least one meeting in a year, without the 2020-21 was placed before the Board at the
attendance of non-independent directors and meeting held on 24th June, 2021.
members of the management.
8. Subsidiary Monitoring Framework
Since 08.09.2020, there being only one
Independent Director, no meeting of Independent The Company has Four (4) direct subsidiary
Directors (IDs) could be held due to want of companies, namely, Hindustan Petroleum
requisite number of Independent Directors. Corporation Ltd (HPCL), Mangalore Refinery
and Petrochemicals Ltd (MRPL), ONGC Videsh
6. Vigil mechanism/whistle blower policy Ltd (OVL) and Petronet MHB Ltd (PMHBL).

Corporate Governance Report

The Company has put in place necessary vigil In terms of the Listing Regulations and the
mechanism/whistle blower policy which provides DPE guidelines on Corporate Governance,
channel to the Directors and Employees to report performance of the subsidiary companies is
genuine concerns about unethical behaviour, reviewed by the Audit Committee and the Board
actual or suspected fraud or violation of the of the Company.
Code of Conduct and also instances of leak
of unpublished price sensitive information. No Material unlisted subsidiary
employees/personnel has been denied access The Company does not have any material
to the Audit Committee. unlisted subsidiary company. The policy on
This in addition to vigilance department determination of materiality of subsidiary is
established under the aegis of Central Vigilance available at weblink: https://www.ongcindia.
Commission as required for all CPSEs. com/wps/wcm/connect/en/investors/policies/

9. Annual General Meetings

Location, date and time of the AGMs held during the preceding 3 years are as under:

Special
Year Location Date Time (IST)
Resolution(s)
187
2017-18 Manekshaw Auditorium, Manekshaw 28.09.2018 10.00 a.m. Yes
(25th AGM) Centre, Parade Road, Khyber Lines,
Delhi Cantonment, Delhi-110010
2018-19 Pragyan Auditorium, All India Council For 30.08.2019 10.00 a.m. Yes
(26th AGM) Technical Education,
Nelson Mandela Marg, Vasant Kunj,
New Delhi-110067
2019-20 Video Conferencing or Other Audio Visual 09.10.2020 11.00 a.m. No
(27th AGM) Means
During the year under review no resolution was passed through postal ballot.
 THE UNSTOPPABLE
ENERGY SOLDIERS
10. Disclosure were imposed on the Company during last three
years.
10.1 Material contracts/ related party transactions
All returns/ reports were filed within stipulated
The Company has not entered into any material, time with stock exchanges.
financial or commercial transactions with the
Directors or the Management or their relatives or 11. Means of communication
the companies and firms, etc., in which they are • Quarterly/Annual Results: The Company
either directly or through their relatives interested regularly intimates un-audited as well
as Directors and/ or Partners except with certain as audited financial results to the Stock
government companies and group companies Exchanges, immediately after approval
(including subsidiaries and associates). of Board. These financial results are
The details of transactions with related parties normally published in the leading English
are disclosed in Note No. 44 of the Notes and vernacular newspapers having
to Financial Statements for the year ended nationwide circulation. The results are also
31.03.2021. The Company has disclosed details displayed on the website of the Company
of transactions with related parties as per the www.ongcindia.com for wider circulation.
disclosure requirements of Indian Accounting • News Release, Presentation etc.:
Standard–24 on Related Party disclosures. The official news releases, detailed
The policy on related party transactions of the presentations made to media, institutional
Company may be accessed at https://www. investors, financial analysts etc. are
ongcindia.com/wps/wcm/connect/en/investors/ displayed on the Company’s website
policies/ www.ongcindia.com.
10.2 Compliances • Website: The Company’s website
The Company is complying with the mandatory www.ongcindia.com contains separate
requirements of Listing Regulations, and the dedicated section ‘Investor Relations’
Companies Act, 2013 except the requirement where the information for shareholders is
pertaining to composition of Board of Directors available. Full Annual Report, Shareholding
with respect to requisite number of Independent Pattern etc. are also available on the
Directors. website.

Further, no meeting of Audit Committee and • Annual Report: Annual Report containing,
Nomination & Remuneration Committee could inter-alia, Audited Accounts, Consolidated
188 be held after 08.09.2020 for want of minimum 2 Financial Statements, Board’s Report,
Independent Directors. Management Discussion and Analysis
(MD&A) Report, Business Responsibility
The Company has been taking up with the
Report, Corporate Governance Report,
Ministry of Petroleum and Natural Gas,
Auditors’ Report, including Information
Government of India from time to time for
for the Shareholders and other important
appointment of requisite number of independent
information is circulated to the members
directors on the Board of the Company.
and others entitled thereto.
The Company has complied with applicable
rules (except as otherwise stated in this report) • Chairman’s Speech during AGM was
and the requirement of regulatory authorities uploaded at the website of the Company
on capital market and no penalties or strictures for information/dissemination to the Public
including shareholders.
 ANNUAL REPORT
2020-21
• Letters to Investor: The Company informs those shareholders who have registered
the shareholders regarding updation their email id with the DP’s/R&T agents
of Bank Account in the records of their and have not opted for physical copy of
shareholding, e-mails of shareholders the Annual report.
concerned for regular communications In terms of exemption granted by the
and also claiming unpaid/unclaimed Ministry of Corporate Affairs and the SEBI,
dividend. the Company shall provide only digital
• Designated exclusive email-ID: The copy of annual reports and notice of AGM
Company has designated the following to the shareholders.
email-ID exclusively for servicing to Further, management also encourages least
investors - [email protected]. use of papers to preserve the environment.
The Company has dedicated portal
• Green Initiative: As a part of Green initiative
i.e. DISHA, which enables “Digitisation
the Company sends the copy of the Annual
Integration and Standardisation by
Report along with the notice convening the
Harnessing Automation” for employees to

Corporate Governance Report

Annual General Meeting through email to
avoid use of physical papers.

189

ONGC is committed to augment oil and gas production to

boost the country’s energy security
 THE UNSTOPPABLE
ENERGY SOLDIERS
12. Shareholders’ information

12.1 Annual General Meeting

Date Friday, 24th September, 2021

Time 11:00 hrs.
Mode Video Conferencing or Other Audio Visual Means

12.2 Financial Calendar

Tentative date of the meeting of the

Adoption of Quarterly/ Half/ Yearly Financial Results
Board
June 30, 2021 Friday, 13th August, 2021
190 (with limited review by Statutory Auditors)
September 30, 2021 Saturday, 13th November, 2021
(with limited review by Statutory Auditors)
December 31, 2021 Saturday, 12th February, 2022
(with limited review by Statutory Auditors)
March 31, 2022 (with Auditor’s Report) Friday, 27th May , 2022

These dates are tentative and subject to change and the last date for submission of the unaudited quarterly
and year to date financial results to the stock exchange, is within forty-five days of end of each quarter
(except the last quarter). The last date for submission of the financial results of the last quarter and year
ended is within sixty days from the end of the financial year.
 ANNUAL REPORT
2020-21
12.3 Dividend payment and Record Date

During the Financial Year 2020-21, the Board of Directors declared an interim dividend @ `1.75 per share
and details pertaining to the dividend is given below:-

Dividend Declared Date of declaration Rate & % of Record Date Dividend

of Dividend Dividend Declared payment Date
53rd Dividend – 13.02.2021 `1.75 per share 20.02.2021 06.03.2021
Interim 2020-21 (@35%)

The Company remits payment of dividend in the registered banking details as available in the records
of members/ beneficial holders through ECS/NEFT. In case of non-availability of bank account number,
shareholders concerned are requested to submit cancelled cheque along with copy of identification proof
for remittance of dividend.

12.4 Listing on Stock Exchanges:

Corporate Governance Report

Equity shares

The equity shares of the Company are part of the S&P BSE Sensex 50 and S&P CNX Nifty 50 Index and are
listed on the following Stock Exchanges:

Name & Address Telephone/Fax/E-mail ID/Website ID Trading Symbol

National Stock Exchange of India Telephone: 022-26598100-8114 ONGC

Ltd. (NSE) Fax: 022-26598120
Exchange Plaza,C-1, E-mail: [email protected]
G Block, Bandra-Kurla Complex, Website: www.nse-india.com
Bandra(E), Mumbai-400051

BSE Limited Telephone:022-22721233/4 500312

(BSE) P.J.Towers, Fax: 022-22721919
Dalal Street, Fort E-mail: [email protected]
Mumbai-400001 Website: www.bseindia.com

Non-Convertible Debentures (NCDs) and 12.5 Utilization of funds raised through issue of
Commercial Papers (CPs) Non-convertible Debentures

During the FY’21, the Company has issued four The Company has issued NCDs amounting 191
(04) tranches of unsecured, redeemable, non- to `41,400 million. The funds raised through
cumulative, taxable, non-convertible debentures issuance of NCDs have been utilized towards the
(NCDs) on a private placement basis and these objectives, viz., capital expenditure or working
NCDs are listed on BSE Limited. capital requirement or refinancing of existing
Loans or other general corporate expenses.
IDBI Trusteeship Services Ltd has been
appointed as the Debenture Trustee for all four None of the securities of the Company has ever
series of NCDs. been suspended from trading.

In addition, the Company has issued Commercial

Papers (CPs), which are also listed on the BSE.
 THE UNSTOPPABLE
ENERGY SOLDIERS
12.6 LISTING FEES

Annual listing fees upto the financial year 2021-22 have been paid to the Stock Exchanges.

12.7 STOCK MARKET INFORMATION*

The stock price performance of ONGC scrip during the period 01.04.2020 to 31.03.2021 in comparison to
peer E&P Company i.e. Oil India Limited and Nifty 50 is plotted below:
( )

*Data is based on closing price of respective month ONGC as well as Oil India and Nifty 50.

12.7.1 Market Price Data:

The Monthly High and Low (traded price) and Number of shares traded (volume) at NSE and BSE for the
financial year 2020-21 are as under:

192 National Stock Exchange* Bombay Stock Exchange*

Month
High (`) Low (`) Volume High (`) Low (`) Volume
Apr-20 81.05 60.80 522484904 81.05 60.90 34350219
May-20 83.75 72.40 430799660 83.75 72.50 18499713
Jun-20 93.10 80.00 546498032 93.1 80.10 30733523
Jul-20 84.90 75.00 376037023 84.9 75.05 30038592
Aug-20 85.50 75.5 400765713 85.5 75.60 23220307
Sep-20 82.80 65.50 438855553 82.95 65.45 24938095
Oct-20 73.35 64.10 426811613 73.2 64.15 25994189
 ANNUAL REPORT
2020-21

National Stock Exchange* Bombay Stock Exchange*

Month
High (`) Low (`) Volume High (`) Low (`) Volume
Nov-20 81.80 64.20 481306375 81.75 64.20 25077565
Dec-20 105.60 77.05 981751160 105.65 77.00 69570027
Jan-21 107.90 87.75 608644609 107.85 87.90 50790050
Feb-21 120.50 88.45 824458933 120.5 88.45 54364696
Mar-21 122.35 100.25 655221306 122.3 100.30 41063381
Total 6693634881 428640357
*Source: Websites of BSE and NSE

12.8 Foreign Exchange and Interest Risk 13. Share transfer /transmission system
Management and Hedging activities
SEBI vide circular dated 28.03.2018 has

Corporate Governance Report

Your Company is exposed to foreign exchange done away with the transfer of securities in
rate fluctuation since earnings and cash flows physical form w.e.f. 01.04.2019. Accordingly,
are influenced by various currencies in which shareholders, who continue to hold shares of
our transactions are involved. the Company in physical form will not be able
to lodge the shares with Company / its RTA for
Your Company is also exposed to interest rate
further transfer.
risk due to loans availed in Indian Rupees and
foreign currency. Inspite of prohibition in physical transfer of
shares after 01.04.2019, detail of physical
Your Company has policy for the risk
shareholding as on 31.03.2021 is given below :-
management covering the exposure towards
foreign exchange and interest rate risk and No of No. of % of total
hedged exposure. It has developed robust physical shares held shareholding
control in forex management to identify, assess, Folios/ (physical
monitor, measure and manage/mitigate foreign holders mode)
exchange and interest rate risk and to hedge the 4,843 46,39,692 0.04
exposure.
Therefore, members holding shares in physical
Since your Company is naturally hedged, form are requested to dematerialize their
hedging decision are triggered in case of a holdings at the earliest.
Net Positive Exposure i.e. Outflows in foreign 193
currency equivalent is more than Inflows in The requests received for re-materialization,
foreign currency equivalent. During the year, consolidation and issue of duplicate shares
no hedging decision was necessitated as there are overseen by a Board level Committee for
was no Net Positive Exposure. Allotment of Securities and Issue of Certificates
(CASIC). A summary of transmission/issue of
Your Company has constituted Forex Risk duplicate share certificate of securities etc. so
Management Committee (FRMC) to review the reviewed are placed at Board Meetings along
forex related matter periodically and suggest with minutes of the CASIC. The share certificates
necessary course of action as and when needed duly endorsed are sent to the shareholders by
within the overall approved framework. RTA. Confirmation in respect to the requests
 THE UNSTOPPABLE
ENERGY SOLDIERS
for dematerialization of shares are sent to the issued capital of the Company is in agreement
respective depositories i.e. NSDL and CDSL, with the total number of shares in physical form
expeditiously by RTA. and the total number of dematerialized shares
Pursuant to the Regulation 40(9) & (10) of Listing held with NSDL and CDSL, is submitted to Stock
Regulations, certificates on half yearly basis Exchanges and also placed before the Board on
confirming due compliance of share transfer a quarterly basis.
formalities by the Company, certificate for timely The total number of transfer deeds processed
dematerialization of the shares as per SEBI and shares transferred (physical share transfer)
(Depositories and Participants) Regulations, during the last three (3) years were as under:
2018 are submitted to stock exchanges.
No. of transfer No. of shares
In addition, in compliance with regulation Years
deeds processed transferred
76A of SEBI (Depositories and Participants) 2020-21 Nil Nil
Regulations, 2018, a Reconciliation of Share
2019-20 1 636
Capital Audit report issued by Practising
Company Secretary, confirming that the total 2018-19 11,953 90,880

14. Shareholding pattern as on 31st March, 2021

SI.No. Category No. of folios No. of Shares % to Equity

1 President of India 1 7599608458 60.41
2 Insurance Companies 31 1454000122 11.56
3 Foreign Institutional Investors, 578 1016859499 8.08
Foreign Portfolio & Foreign Bank
4 Indian Oil Corporation Limited 1 986885142 7.84
5 Mutual Funds 33 741969509 5.90
6 Public (Individual) 1133732 372069904 2.96
7 GAIL (India) Limited 1 308401602 2.45
8 Trusts 61 39686803 0.32
9 Banks/Financial Institutions 14 2157771 0.02
10 Other Body Corporates 2132 17191054 0.14
11 Non Resident Indian/Non Resident 15078 16077031 0.13
Non Repatriates
194 12 Clearing Members 313 14175925 0.11
13 Hindu Undivided Families 6926 5304578 0.04
14 Employees 2577 3896437 0.03
15 Investor Education and Protection 1 1160248 0.01
Fund
16 Provident Funds/ Pension Funds 1 598333 0.00
17 Non-Banking Finance companies 12 109219 0.00
18 Alternate Investment Funds 5 125102 0.00
19 Foreign bank/Foreign National 5 2469 0.00
Total 1161502 12580279206 100.00
 ANNUAL REPORT
2020-21

Corporate Governance Report

14.1 Top 10 Shareholders as on 31st March, 2021

Sl. No of shares % of total

Name of Shareholders
No held shareholding

1 President of India 7599608458 60.41

2 Life Insurance Corporation of India 1367356893 10.87

3 Indian Oil Corporation Limited 986885142 7.84

4 GAIL (India) Limited 308401602 2.45

5 ICICI Prudential Equity & Debt Fund 300124785 2.39

6 CPSE Exchange Traded Scheme (CPSE ETF) 258473441 2.05

7 Fidelity Puritan Trust Fidelity Series Intrinsic Opportunities Fund 75000616 0.60

8 ICICI Prudential Multi-Asset Fund 60600000 0.48

9 Life Insurance Corporation of India P & GS Fund 54083520 0.43 195

10 SBI -ETF Nifty 50 52401715 0.42
 196
14.2 Distribution of shareholding by size as on 31st March, 2021

ENERGY SOLDIERS
THE UNSTOPPABLE
No. of shareholders No. of shares
% of % of Share
Category Physical Demat Total Physical
holder DEMAT Shares Total holding Holding
holders holders Holders shares
1 to 500 1840 1013497 1015337 87.42 242248 102361268 102603516 0.82
501 to 1000 325 77492 77817 6.70 255471 56916332 57171803 0.45
1001 to 2000 670 34173 34843 3.00 1001973 49769765 50771738 0.40
2001 to 3000 96 11247 11343 0.98 232700 28503105 28735805 0.23
3001 to 4000 114 5931 6045 0.52 398994 21043695 21442689 0.17
4001 to 5000 82 4463 4545 0.39 362154 20431753 20793907 0.17
5001 to 10000 389 8096 8485 0.73 2129052 54636123 56765175 0.45
10001 to above 3 3084 3087 0.26 17100 12241977473 12241994573 97.31
Total 3519 1157983 1161502 100.00 4639692 12575639514 12580279206 100

14.3 Geographical distribution of shareholders as on 31st March, 2021

City Name No of Folios/holders % age Holding % age

Delhi 67285 5.63 7949698828 63.19
Mumbai 155471 13.01 4305047368 34.22
Chennai 35201 2.95 30264841 0.24
Kolkata 41535 3.48 26094631 0.21
Ahmedabad 45609 3.82 23695444 0.19
Vadodara 26253 2.20 13985108 0.11
Bengaluru 47264 3.95 18178104 0.14
Pune 40047 3.35 10799280 0.09
Hyderabad 29065 2.43 9339948 0.07
Other Cities 707225 59.18 193175654 1.54
Total 11,94,955* 100.00 1258,02,79,206 100.00
*folio numbers having same PAN are not clubbed.
 ANNUAL REPORT
2020-21
Dematerialization of Shares and Liquidity (as on 31.03.2021)

No of Folios/ % of total Equity

Sl. No. Description No of Shares
holders Capital
1 CDSL 646170 9298986219 73.92
2 NSDL 543942 3276653295 26.04
3 Physical 4843 4639692 0.04
Total 11,94,955* 1258,02,79,206 100.00
*Folio numbers having same PAN are not clubbed.

The shares of the Company are in compulsory dematerialized segment and are available for trading in depository
system of both National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited
(CDSL).

14.4 History of Paid-up Equity Share Capital

Corporate Governance Report

Year No. of Shares Cumulative Details
Initial Subscription to the Memorandum of Association
1993-94 10 10
on 23rd June, 1993
Issued to the President of India on 01st February,
1994 on transfer of Undertaking of Oil and Natural
1993-94 34,28,53,716 34,28,53,726 Gas Commission in terms of Oil and Natural Gas
Commission (Transfer of Undertaking and Repeal) Act,
1993
Issued to the Employees at a premium of
1994-95 66,39,300 34,94,93,026 `260 per Share (includes 600 shares issued in
1995-96)
Issue of Bonus Shares in ratio of 3.08:1 on 24.04.1995
1995-96 107,64,40,966 142,59,33,992
by Capitalization of General Reserve
(-)18,972 142,59,15,020 Forfeiture of Shares on 12.04.2006
2006-07 Issue of Bonus Shares in ratio of 1:2 on 08.11.2006 by
71,29,57,510 213,88,72,530 Capitalization of General Reserve
Each equity Share of the Company was split from the
face value of `10 into two equity shares of the face
value of `5 each.
197
2010-11 - 8,55,54,90,120
Bonus Shares were issued in the ratio of 1:1 by
Capitalization of Reserves to the shareholders as on
09.02.2011 (Record Date)
2016-17 4,27,77,45,060 12,83,32,35,180 Issue of Bonus Shares in ratio of 1:2 on 18.12.2016 by
Capitalization of General Reserves
2018-19 (25,29,55,974) 12,58,02,79,206 Buy-Back of shares @ `159/- per share (1.97% of
pre-buyback capital). Buy-back was completed on
22.02.2019
 THE UNSTOPPABLE
ENERGY SOLDIERS
15. Dividend history of last 7 years and the current financial year

Years Rate (%) Per Share (`) Amount

(` in million)
2013-14
First Interim 100 5.00 42,777.45
Second Interim 85 4.25 36,360.83
Final 5 0.25 2,138.87
2014-15
First Interim 100 5.0 42,777.45
Second Interim 80 4.0 34,221.96
Final 10 0.5 4,277.75
2015-16
First Interim 90 4.50 38,499.71
Second Interim 15 0.75 6,416.68
Final 65 3.25 27,805.34
2016-17
First Interim 90 4.50 38,499.71
Second Interim (Post- bonus) 45 2.25 28,874.78
Final 16 0.80 10,266.61
2017-18
First Interim 60 3.00 38,499.71
Second Interim 45 2.25 28,874.89
Final 27 1.35 17,324.87
2018-19
First Interim 105 5.25 66,046.53
Second Interim 20 1.00 12,580.28
Final 15 0.75 9,435.21
2019-20
Interim 100 5 62,901.40
2020-21
198 Interim 35 1.75 22,015.49

16. Investor Education & Protection Fund (IEPF)

16.1 Unclaimed Dividend and shares transferred to IEPF Authority during FY 20-21

Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 (“the IEPF Rules”), all unpaid or unclaimed dividends are required
to be transferred by the Company to the IEPF, established by the Government of India, after the completion
of seven years.

Further, according to the IEPF Rules, the shares on which dividend has not been paid or claimed by the
shareholders for seven consecutive years or more shall also be transferred to the IEPF Authority.
 ANNUAL REPORT
2020-21
Accordingly, during financial year 2020-21, following amount of unpaid/unclaimed dividend & shares have
been transferred to the IEPF authority set up by the Central Government.

Amount No. of shares

Date of
Financial Year transferred to IEPF transferred to
Declaration
(Amount in `) IEPF
2012-13 (2nd Interim) 20.03.2013 1,59,31,984 17,413
2012-13 (Final) 25.09.2013 27,98,257 25,034
2013-14 (1st Interim) 06.12.2013 1,93,50,595 12,015
Total amount of unclaimed dividend 3,80,80,836 54,462
There were no amount due and pending to be transferred to the IEPF as at the end of the year.

Proposed dates for transfer of the unclaimed/unpaid dividend during FY’22:-

Proposed Date of transfer

Financial Year Date of Declaration
to IEPF

Corporate Governance Report

2013-14 (2nd Interim) 24.03.2014 27.07.2021
2013-14 (Final) 24.09.2014 30.11.2021
2014-15 ( Interim) 18.12.2014 23.02.2022

Section 124 of the Companies Act, 2013 provides that any dividend that has remained unpaid/unclaimed
for a period of seven years from the date of transfer to unpaid dividend account shall be transferred to the
Investor Education and Protection Fund (IEPF) established by Central Government.

199

Nightshot of process compex at Heera Asset

 THE UNSTOPPABLE
ENERGY SOLDIERS
The details of dividend which remains unpaid/ unpaid dividend amount and shares transferred
unclaimed as on March 31, 2021 are given to IEPF are available at the website at https://www.
below:- ongcindia.com/wps/wcm/connect/en/investors/
transfer-of-shares-to-iepf/
Type of
Year Amount (in `)
Dividend 17. Outstanding GDRs/ADRs/Warrants or
Interim-II 15,525,198.00 Convertible Instruments
2013-14
Final 1,686,523.00 No GDRs/ADRs/Warrants or Convertible
Interim 23,777,290.00 Instruments have been issued by the Company.
2014-15 Interim-II 15,908,044.00
18. Credit Ratings
Final 2,679,888.00
Information on credit ratings have been provided
Interim –I 16,821,210.00 at Para 24 of the Board’s Report.
2015-16 Interim-II 3,827,447.00
19. Assets/ Basins/ Plants/ Institutes
Final 14,497,964.00
Interim-I 19,094,599.00 A. Assets/Exploratory Assets
2016-17 Interim-II 15,646,779.00 1. Mumbai High Asset, Mumbai
Final 6,691,848.00 2. Neelam & Heera Asset, Mumbai
Interim-I 20,242,788.00 3. Bassein & Satellite Asset, Mumbai
2017-18 Interim-II 15,891,182.00 4. Eastern Offshore Asset, Kakinada
Final 12,221,447.00 5. Ahmedabad Asset, Ahmedabad
Interim-I 30,147,371.00 6. Ankleshwar Asset, Ankleshwar
2018-19 Interim-II 6,799,634.00
7. Mehsana Asset, Mehsana
Final 5,240,857.00
8. Rajahmundry Asset, Rajahmundry
2019-20 Interim-I 50,701,215.00
9. Cauvery Asset, Karaikal
2020-21 Interim-I 32,709,584.00
10. Assam Asset, Nazira
Total 310,110,868.00
11. Tripura Asset, Agartala
Detail of Nodal and Deputy Nodal Officer of the 12. Cambay Asset, Cambay
Company as under the provisions of IEPF is as
200 13. CBM Asset, Bokaro
below:
14. Jorhat Asset, Jorhat
Nodal Officer: Shri Rajni Kant
Company Secretary 15. HPHT Asset, Kakinada
Phone No.: +91 11 26754080 16. Rajasthan Kutch Onland Exploratory Asset
Email ID: [email protected] (RKOEA)
Dy. Nodal Officer: Shri Shashi Bhushan Singh 17. Assam Arakan Fold Belt Exploratory Asset
Deputy Company Secretary (AAFBEA)
Phone No.: +91 11 26754085
Email ID: [email protected] B. Basins
The details of Nodal Officer and Deputy Nodal 1. Western Offshore Basin, Mumbai
Officer of the Company and other details related to
2. Western Onshore Basin, Vadodara
 ANNUAL REPORT
2020-21
3. KG-PG Basin, Chennai Further, the Company has placed appropriate
4. Cauvery Basin, Chennai restrictive covenants in the Code of Conduct
5. Assam & Assam-Arakan Basin, Jorhat applicable for members of the Board and Senior
Management Personnel.
6. MBA Basin, Kolkata
7. Frontier Basin, Dehradun 21. Guidelines on Corporate Governance by
C. Plants the DPE

1. Uran Plant, Maharashtra In May, 2010, the Department of Public

Enterprises (DPE) has issued Guidelines on
2. Hazira Plant, Gujarat
Corporate Governance for Central Public Sector
3. C2 C3 Plant, Dahej, Gujarat
Enterprises which are now mandatory in nature.
D. Institutes
No Presidential Directives have been issued during
1. Keshava Deva Malaviya Institute of the period 1st April, 2020 to 31st March, 2021.
Petroleum Exploration (KDMIPE), Dehradun
No items of expenditure have been debited
2. Institute of Drilling Technology (IDT), Dehradun

Corporate Governance Report

in books of accounts, which are not for the
3. Institute of Reservoir Studies (IRS),
purpose of business. No expenses, which are
Ahmedabad
personal in nature, have been incurred for the
4. Institute of Oil & Gas Production Board of Directors and top management.
Technology (IOGPT), Navi Mumbai
The General Administrative expenses were 5.80%
5. Institute of Engineering & Ocean
of total expenses during 2020-21 as against
Technology (IEOT), Navi Mumbai
5.19% (restated) during the previous year.
6. Geo-data Processing & Interpretation
Center (GEOPIC), Dehradun 22. Fee to statutory auditors
7. ONGC Academy, Dehradun
The details of total fees for all services paid by the
8. Institute of Petroleum Safety, Health &
Company and its subsidiaries, on a consolidated
Environment Management (IPSHEM), Goa
basis, to the statutory auditor and all entities in the
9. Institute of Biotechnology & Geotectonics network firm / network entity of which the statutory
Studies (INBIGS), Jorhat auditor is a part, are as follows:
10. School of Maintenance Practices (SMP),
(` in million)
Vadodara
11. Centre for Excellence in Well Logging Payment to Year ended Year ended
(CEWELL), Vadodara Auditors 31.03.2021 31.03.2020
201
12. Gas Hydrate Research & Technology Audit Fees 32.57 32.57
Centre (GHR&TC), Panvel
13. Skill Development Centers (SDC’s) in Certification 12.75 14.40
and Other
Chennai, Mumbai, Vadodara and Sibsagar Services
20. Code on insider trading
Travelling and 2.39 18.30
The Company has policy on Prohibition of Out of Pocket
Expenses
Insider trading (PIT) Policy and the said Policy
may be accessed at https://www.ongcindia. Total 47.71 65.27
com/wps/wcm/connect/en/investors/policies/
 THE UNSTOPPABLE
ENERGY SOLDIERS
23. Complaints pertaining to Sexual Harassment Governance as stipulated under Schedule V
Details of complaints pertaining to Sexual (E) of the Listing Regulations, is enclosed as
Harassment have been provided at Para 36 of Annexure-A to this Report
the Board’s Report. Further, M/s JMC & Associates, PCS, has also
issued a certificate of Non-Disqualification of
24. Adoption of Non-mandatory requirements (as
Directors dated 26.05.2021 as required under
per part E of Schedule V)
Schedule V Para C clause (10) (i) the Listing
Besides complying with the mandatory
Regulations, confirming that none of the
requirement of the Listing Regulation, the Internal
directors on the Board of the Company has been
Auditor reports directly to the Audit Committee.
debarred or disqualified from being appointed
26. Code of conduct for members of the Board or continuing as director of companies by the
and senior management SEBI / Ministry of Corporate Affairs or any such
statutory authority. The certificate is enclosed as
Pursuant to Regulation 26(3) of Listing
Annexure B.
Regulations, all the members of Board and
senior management personal have affirmed 28. Secretarial Audit report and certificate(s)
compliance with the code of conduct of the from Company Secretary in practice
Company, as placed on the Company’s website
www.ongcindia.com The Secretarial Audit has been conducted by
M/s Ashu Gupta & Co., Practicing Company
A declaration signed by the CEO on 31.05.2021 Secretaries with respect to compliance to
is given below: the applicable provisions of Companies Act,
“I hereby confirm that the Company has obtained 2013, Listing Regulations and DPE Guidelines.
from the members of the Board and senior The Secretarial Audit Report shall form part of
management (Key Executives), affirmation that Boards’ Report.
they have complied with the Code of Conduct In terms of requirements of SEBI Circular No.
of Board of Directors and senior management in CIR/CFD/CMD1/27/2019 dated 08.02.2019,
respect of the financial year 2020-21”. M/s. Ashu Gupta & Co. has examined the
compliances relating to applicable SEBI
27. Compliance certificate
Guidelines and has issued Annual Secretarial
Certificate from JMC & Associates, Practicing Compliance report, which were submitted to
Company Secretaries (PCS), confirming stock exchanges on 30.06.2021.
compliance with the conditions of Corporate

202
 ANNUAL REPORT
2020-21
Annexure-A

Certificate on Corporate Governance Compliances

To, of performance of non- independent directors,
the Chairperson and the Board of Directors
The Members of Oil and Natural Gas Corporation Ltd.
as a whole by the Independent Directors was
We have examined the compliance of the conditions not carried out and also the meeting of the
of Corporate Governance by Oil and Natural Gas Independent Directors was not held.
Corporation Limited (CIN: L74899DL1993GOI054155)
(b) Regulations 18 and 19 of the Listing Regulations:
(“the Company”) for the year ended 31st March,
The composition of the Audit Committee and the
2021, as stipulated in Regulations 17 to 27, clauses
Nomination & Remuneration Committee was
(b) to (i) of Sub-regulation (2) of Regulation 46 and
not in compliance with the Listing Regulations
paragraphs C, D and E of Schedule V of Securities

Certificate on Corporate Governance

w.e.f. 08th September, 2020. Further, no meeting
and Exchange Board of India (Listing Obligations and
of the Audit Committee was convened after
Disclosure Requirements) Regulations, 2015 (“the
31st August, 2020 and consequently mandatory
Listing Regulations”) to the extent applicable during
functions of the Audit Committee such as review
the year.
of quarterly results/annual financial statements,

Compliances
The compliance of conditions of Corporate approval of related party transactions, etc. were
Governance is the responsibility of the Management. directly carried out by the Board thereafter.”
Our examination was limited to procedures and
We further state that such compliance is neither
implementations thereof, adopted by the Company an assurance as to the future viability of the
for ensuring the compliance of the conditions of the Company nor the efficiency or effectiveness
Corporate Governance. It is neither an audit nor an with which the Management has conducted the
expression of opinion on the financial statements of affairs of the Company.
the Company.
The certificate is addressed and provided to
In our opinion and to the best of our information and the members of the Company solely for the
according to the explanations given to us, we certify purpose of complying with the requirement of
that the Company has complied with conditions of the Listing Regulations and it should not be used
Corporate Governance, subject to the following: by any other person or for any other purpose.
“The Company had only 2 (two) Independent Accordingly, we do not accept or assume any
Directors on its Board of Directors (the Board) liability or any duty of care for any other purpose
from 01st April, 2020 to 07th September, 2020 or to any other person to whom this report is
shown or into whose hands it may come without
203
and only 1 (one) Independent Director thereafter,
as against the sanctioned strength of 9 (nine) our prior consent in writing.
Independent Directors. Thus, composition of
the Board was non-compliant with Regulations For JMC & Associates
17(1)(a)&(b) of the Listing Regulations, including Company Secretaries
no woman Independent Director on the Board
w.e.f. 08th September, 2020. Consequently, the Sd/-
Company also did not comply with the following: (CS Mukesh Chand Jain)
(a) Regulations 17(10) and 25(3)&(4) of the Listing UDIN: F010483C000565290
Regulations - Evaluation of performance of New Delhi FCS 10483
Independent Directors by the Board and review 01.07.2021 COP 22307
 THE UNSTOPPABLE
ENERGY SOLDIERS
Annexure-B

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]

To,
The Members of
OIL AND NATURAL GAS CORPORATION LIMITED
Plot No. 5A- 5B Nelson Mandela Road,
Vasant Kunj, New Delhi-110070
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors
of OIL AND NATURAL GAS CORPORATION LIMITED (hereinafter referred to as ‘the Company’), having CIN:
L74899DL1993GOI054155 and having registered office at Plot No. 5A- 5B, Nelson Mandela Road, Vasant Kunj,
New Delhi-110070, produced before us by the Company for the purpose of issuing this Certificate, in accordance
with Regulation 34(3) read with Schedule V Para-C Sub-clause 10(i) of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us
by the Company and its Officers, we hereby certify that none of the Directors on the Board of the Company as
on 31st March 2021 as stated below, have been debarred or disqualified from being appointed or continuing as
Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such
other Statutory Authority(ies):

Date of appointment
Sr. No. Name of Director DIN
in Company

1 Shri Shashi Shanker* 06447938 01/12/2012

2 Shri Amar Nath 05130108 28/06/2016

3 Shri Subhash Kumar 07905656 31/01/2018

4 Shri Rajesh Shyamsunder Kakkar** 08029135 19/02/2018

204
5 Dr. Alka Mittal 07272207 27/11/2018

6 Shri Amitava Bhattacharyya 08512212 19/07/2019

7 Shri Rajesh Kumar Srivastava 08513272 02/08/2019

8 Shri Rajesh Madanlal Aggarwal 03566931 24/03/2020

9 Shri Om Prakash Singh 08704968 01/04/2020

10 Shri Anurag Sharma 08050719 01/06/2020

*Since ceased w.e.f. 01.04.2021.
**Since ceased w.e.f. 01.05.2021.
 ANNUAL REPORT
2020-21
Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the
Management of the Company. Our responsibility is to express an opinion on these based on our verification.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.
For JMC & Associates
Company Secretaries

Sd/-
CS Mukesh Chand Jain
New Delhi FCS No. : 10483
26th May, 2021 C.P. No.: 22307
UDIN F010483C000371096

Certificate on Corporate Governance

Compliances
205

Three major projects have been completed with an investment

of `33,325 million during FY’21
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Business Responsibility Report

206 207

Business Responsibility Report 208

 THE UNSTOPPABLE
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Business Responsibility Report

[See Regulation 34(2) (f)]

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1. Corporate Identity Number (CIN) : L74899DL1993GOI054155

2. Name : Oil and Natural Gas Corporation Limited.
3. Registered address : Plot No. 5A-5B, Nelson Mandela Road, Vasant Kunj, South
West Delhi-110070, India
4. Website : www.ongcindia.com
5. E-mail id : [email protected]
6. Financial Year reported : 2020-21

7. Sector(s) that the Company is engaged in (industrial activity code-wise):

Group Class Sub Description

Class
061 061 06101 Offshore extraction of crude Petroleum
06102 Onshore extraction of crude Petroleum
062 062 06201 Offshore extraction of Natural gas
06202 Onshore extraction of Natural gas
091 0910 09101 Services incidental to off shore oil extraction
09102 Services incidental to on shore oil extraction
09103 Services incidental to off shore gas extraction
09104 Services incidental to on shore gas extraction
493 4930 49300 Transport via Pipeline
192 1920 19201 Production of liquid and gaseous fuels, illuminating oils, lubricating
oils or greases or other products from crude petroleum or
bituminous minerals

8. List three key products/services that the Company manufactures/provides (as in balance sheet):

(i) Crude Oil

(ii) Natural Gas

208
(iii) Liquefied Petroleum Gas

9. Total number of locations where business activity is undertaken by the Company

a) Operational Locations: The Company has Pan-India business activities spread across the length and
breadth of the country, both onshore and offshore. The major locations of the Company is mentioned
at Sl. No. 19 of the Corporate Governance Report, a document forming part of the Annual Report.

b) Subsidiaries and Associates: Details of subsidiaries and Associates are provided at Sl. No. 44 to
notes to accounts of Standalone Financial Statements.

c) Number of International Locations: ONGC Videsh, the wholly-owned subsidiary of your Company for
E&P activities outside India, has participation in 37 oil and gas projects in 17 Countries, viz. Azerbaijan
 ANNUAL REPORT
2020-21
(2 projects), Bangladesh (2 Projects), Brazil Petroleum Corporation Limited, Numaligarh
(2 projects), Colombia (7 projects), Iran (1 Refinery Limited, Chennai Petroleum
project), Iraq (1 project), Israel (1 project), Corporation Limited and Mangalore Refinery
Kazakhstan (1 project), Libya (1 project), and Petrochemicals Limited and the natural gas
Mozambique (1 Project), Myanmar (6 is mainly marketed through GAIL (India) Limited.
projects), Russia (3 projects), South Sudan However, part of the gas is also marketed
(2 projects), Syria (2 projects), United Arab directly by the Company.
Emirates (1 project), Venezuela (2 projects)
The Value Added Products are marketed in bulk
and Vietnam (2 projects).
to the PSU Oil Marketing Companies (OMCs),
Further, Hindustan Petroleum Corporation ONGC Petro additions Limited (OPaL) and
Limited (HPCL), the other subsidiary of the remaining to private companies. Naphtha
the Company holds two blocks T/L1 and is occasionally exported because of lesser
T/18P in Australia through its subsidiary demand from customers.
PPCL. HPCL Middle East FZCO, a
SECTION B: FINANCIAL DETAILS OF THE
100% Subsidiary of HPCL as a free zone

Business Responsibility Report

COMPANY
company under Dubai Airport Free Zone
and Establishment Card was issued for 1. Paid-up Share Capital : `62901.39 million
the company. HPCL Middle East FZCO 2. Total Turnover -Revenue : `681,411 million
was established for trading of lubricants from Operations
& greases, petrochemicals and refined 3. Total profit after taxes : `112,464 million
petroleum products. (PAT)

10. Markets served by the Company – Local/ 4. CSR budget approved : `5,388 million
State/National by the Board
5. Total Spending on : `5,531 million
The Company is marketing its domestic Corporate Social (4.92%)
products, mainly crude oil to the Public Sector Responsibility (CSR) as
refiners – Indian Oil Corporation Limited, Bharat percentage of PAT (%)
Petroleum Corporation Limited, Hindustan the year:

209

No area is too remote or too difficult for ONGCians

 THE UNSTOPPABLE
ENERGY SOLDIERS
List of activities in which expenditure in 4 above has been incurred:-

Sl. No. Sector of activities

1 Eradicating hunger, poverty and malnutrition, promoting health care including preventive health
care and sanitation
No Poverty (Sustainable Development Goal-1)
Zero Hunger (Sustainable Development Goal-2)
Good Health and Well-being (Sustainable Development Goal-3)
Clean Water and Sanitation (Sustainable Development Goal-6)
2 Promoting education, including special education and employment enhancing vocational skills
especially among children, women, elderly, and the differently abled and livelihood enhancement
projects
Quality Education (Sustainable Development Goal-4)
Decent Work and Economic Growth (Sustainable Development Goal-8)
3 Promoting gender equality, empowering women, setting up homes and hostels for women and
orphans; setting up old age homes, day care centers and such other facilities for senior citizens
and measures for reducing inequalities faced by socially and economically backward groups.
Gender Equality (Sustainable Development Goal-5)
Reducing Inequality (Sustainable Development Goal-10)
4 Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal
welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and
water including contribution to the Clean Ganga Fund setup by the Central Government for
rejuvenation of river Ganga
Sustainable Cities and Communities
Affordable and Clean Energy (Sustainable Development Goal-7)
Climate Action (Sustainable Development Goal-13)
Life on Land (Sustainable Development Goal-15)
5 Other Areas
• Rural development projects
• 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 art and handicrafts
• Training to promote rural sports, nationally recognized sports, Paralympic sports and
210 Olympic sports

SECTION C: OTHER DETAILS

1. Does the Company have any Subsidiary Company/Companies:

Yes, please refer to Sl. No. 44 of notes to accounts of Standalone Financial Statements.

2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent Company? If yes,
then indicate the number of such subsidiary Company(s)

Subsidiary Companies are carrying out Business Responsibility (BR) initiatives as per their own policies.
 ANNUAL REPORT
2020-21
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with,
participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities.
[Less than 30%, 30-60%, More than 60%]

The BR initiative of the Company has the cooperation of all its stakeholders, including Government of India,
employees, vendors, and the local populace. However, it is difficult to quantify the extent of their support,
in terms of percentage, in facilitating the BR initiatives of the Company.

SECTION D: BR INFORMATION

1. Details of Director/Directors responsible for BR:

(a) Details of the Director responsible for implementation of the BR policy/policies:

1. DIN Number : 06447938

2. Name : Shri Shashi Shanker
3. Designation : Chairman & Managing Director

Business Responsibility Report

(b) Details of the BR Head:

No. Particulars Details

1 DIN Number (if applicable) Not Applicable
2 Name Shri S K Shrivastava
3 Designation Executive Director – Chief of CM&SG
4 Telephone number +91 11 26754003
5 e-mail id [email protected]

2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Yes/ No)

Name of principles:

P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
P2 Businesses should provide goods and services that are safe and contribute to sustainability
throughout their lifecycle.
P3 Businesses should promote the well-being of all employees.
P4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially 211
those who are disadvantaged, vulnerable and marginalized.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect, protect, and make efforts to restore the environment.
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a
responsible manner.
P8 Businesses should support inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their customers and consumers in a
responsible Manner.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Sl.
Questions P1 P2** P3 P4 P5 P6 P7 P8 P9
No.
1. Do you have a policy/policies Yes Yes Yes Yes Yes Yes N.A. Yes Yes
for:
2. Has the policy been formulated Yes Yes Yes Yes Yes Yes - Yes Yes
in consultation with the relevant
stakeholders?
3. Does the policy conform to Company policies have been formulated in compliance to applicable
any national/ international statutes/ guidelines/ rules/ regulations of the Government of India.
standards? If yes, specify. (50 These policies were formulated keeping in view industry best practices
words) and standards.
4. Has the policy been approved Yes Yes Yes Yes Yes Yes - Yes Yes
by the Board? Has it been Policies of the Company have been approved by the Board/ Competent
signed by MD/ Owner/ CEO/ Authorities as per Board Delegated Powers.
Appropriate Board Director?
5. Does the Company have a Yes Yes Yes Yes Yes Yes - Yes Yes
specified committee of the
Board/ Director/Official to
oversee the implementation of
the policy?
6. Indicate the link for the policy https://www.ongcindia.com/wps/wcm/connect/en/investors/policies/
to be viewed online.
7. Has the policy been formally Yes Yes Yes Yes Yes Yes - Yes Yes
communicated to all
relevant internal and external
stakeholders?
8. Does the Company have in- Yes Yes Yes Yes Yes Yes - Yes Yes
house structure to implement
the policy/policies?
9. Does the Company have Yes Yes Yes Yes Yes Yes - Yes Yes
a grievance redressal
mechanism related to the
policy/ policies to address
stakeholders’ grievances
related to the policy/ policies?
212
10. Has the Company carried out Being a responsible PSU, the Company follows all policies in real
independent audit/evaluation working conditions. The Company’s operations are audited annually by
of the working of this policy by both internal and external agencies. The Company is also publishing
an internal or external agency? its GRI based, independently assured Corporate Group Sustainability
Report every year.

Note:
• P2** ONGC policies hold true as long as the products are under its supervision. Once the products are
delivered to its customer PSEs, the products come under the policy guidelines of the customer.
• P7 has been marked as ‘N.A’ or not applicable. The Company always complies with all applicable
regulations issued by statutory bodies. It transparently discloses its environmental, social and financial
parameters in public platforms maintaining applicable national and international protocols.
 ANNUAL REPORT
2020-21
3. Governance related to BR Requirement) Regulations, 2015 and other guidelines
and policies of the DPE in particular and Govt. of India
(a) Indicate the frequency with which the Board
in general.
of Directors, Committee of the Board or
CEO to assess the BR performance of the The Company also pursues some of the following
Company. Within 3 months, 3-6 months, policy initiatives voluntarily towards Ethics,
Annually, More than one year. Transparency and Accountability:

Details of meetings of the Board and • The Company has a well-defined and codified
statutory Board Level Committees held Book of Delegated Powers, Integrated Materials
during the financial year 2020-21 is Management Manual, HR Manual, Finance
provided at Para nos. 2 and 3 of the Manual, CSR Manual, etc. for ensuring continuity,
Corporate Governance Report. transparency and fairness in observing the
laid down procedures. The Company has an
(b) Does the Company publish a BR or a
Enterprise Risk Management Cell (ERM), risk
Sustainability Report? What is the hyperlink
framework, risk policy and risk portfolio which are
for viewing this report? How frequently it is

Business Responsibility Report

periodically monitored by the Risk Management
published?
Committee, Audit Committee and the Board.
The Company has been publishing both BR All the manuals and policies are reviewed and
and Corporate ONGC Group Sustainability updated from time to time, if required.
Report annually. The Annual Report and
• The Company has a well-structured vigilance
Sustainability Report may be accessed
department with units spread across the
respectively at following web-links:
organization at various Assets, Basins and
https://www.ongcindia.com/wps/wcm/ Plants.
connect/en/investors/annual-reports/
• Constantly ushering transparency, efficiency
https://www.ongcindia.com/wps/wcm/ and integrity and best corporate practices in the
connect/en/sustainability/sustainability- working of the organization.
reports/
• The Company has a Whistle Blower Policy
SECTION E: PRINCIPLE-WISE PERFORMANCE meant to provide a channel to the Employees
to report genuine concerns about unethical
Principle 1: Businesses should conduct and behaviour, actual or suspected fraud within the
govern themselves with Ethics, Transparency and organization.
Accountability
• The Company has adopted a model Integrity 213
Principle 1.1 Pact (in association with Transparency
International), being entered with every bidder
Do you have policy/policies for principle 1?
to enable them to raise any issue with regard to
The Company, being a listed Central Public Sector tenders floated from time to time. The Company
Enterprise (CPSE), conducts and governs itself is the first among Indian companies to introduce
with Ethics, Transparency and Accountability signing of Integrity Pact. People of high repute
as per the policies mandated by Department of and integrity are appointed as Independent
Public Enterprises (DPE), Guidelines on Corporate External Monitors to oversee implementation of
Governance, SEBI (Listing Obligations and Disclosure the said Integrity Pact with the bidders.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Principle 1.2 said ToR is approved by the Board. However, for want
of requisite quorum, no meeting of audit committee
Has the policy been formulated in consultation with
was held after 31.08.2020. The Company also has a
the relevant stakeholders?
well-structured vigilance department with units spread
All policies have been formulated after consultation across the organization at various Assets, Basins and
and discussion with relevant stakeholders and further Plants constantly ushering transparency, efficiency
the same gets reviewed from time-to-time to cater and integrity and best corporate practices. Further,
to emerging and new business realities/paradigms, implementation of the Principles are overseen by the
after wider consultations amongst stakeholders. The executives of the Company.
Company being a CPSE pursues policies laid down
by the Government of India and other statutory bodies. Principle 1.6
The policies are framed as per guidelines provided by Indicate the link for the policy to be viewed online.
statutory bodies and operational requirements of the
Company. The website of the Company (www.ongcindia.com)
has reference to the various tenets as stated in the
Principle 1.3 principle under the section on Corporate Governance.

Does the policy conform to any national/international Polices of the Company may be accessed at
standards? If yes, specify. (50 words) https://www.ongcindia.com/wps/wcm/connect/en/
investors/policies/
The policy conforms to statutes and policies of
the Government of India, DPE and other statutory/ Principle 1.7
regulatory bodies. Further, the Company voluntarily
follows international standards for transparency, Has the policy been formally communicated to all
including the one prescribed by the Transparency relevant internal and external stakeholders?
International and Global Reporting Initiative (GRI). The Company’s policies and operational
framework are available on the Company’s website
Principle 1.4
“ongcindia.com” for external stakeholders and
Has the policy been approved by the Board? If yes, “reports.ongc.co.in” for employees.
has it been signed by MD/owner/CEO/appropriate
The engagement routes across all the stakeholders
Board Director?
are:
All policies as mandated by statutory/regulatory
• The Customers are engaged through Crude Oil
bodies are followed by the Company. All other
Sales Agreement (COSA), Gas Sales Agreement
policies/manuals of the Company are implemented
(GSA) and regular meetings with B2B partners.
214 as duly approved by the Board of Directors or other
Competent Authority, as the case may be. • The Communities in and around our areas of
operation are engaged through CSR projects.
Principle 1.5
• Business partners/vendors are engaged through
Does the Company have a specified committee of the vendor meets, business partners meet and pre-
Board/ Director/Official to oversee the implementation bid conferences.
of the policy? • Contract workers are engaged through regular
The Company has an Audit Committee which has trainings and SAHYOG Scheme.
its Terms of Reference (ToR) as per the Listing • Employees are engaged through open house
Regulations and the Companies Act, 2013 and the forums, people connect meetings, newsletters,
 ANNUAL REPORT
2020-21
emails, employee web portal and also through to suggest measures to prevent similar grievances in
various in-house magazines. future. Chairman & Managing Director (CMD) takes
• Regular engagement of Employees and other the final decision in totality on the grievance of the
external stakeholders (like Suppliers, Vendors, employee with inputs from Director (HR), if required.
Customers, Regulators, NGOs etc.) is also For external stakeholders, the Company has a well
carried out as a mandatory input to ONGC laid down grievance redressal system in place with
Group Sustainability Report for identifying and adequate provisions to escalate the matters up to the
prioritizing materiality issues of ONGC Group. Board. The Stakeholders Relationship Committee – a
• Government and regulatory bodies are engaged Board level Committee is headed by an Independent
through meetings with the administrative Director.
ministry i.e. Ministry of Petroleum & Natural Gas The Company voluntarily facilitates resolving
(MoP&NG), Department of Public Enterprise grievances through Independent External Monitors
(DPE), Oil Industry Safety Directorate (OISD), (IEMs) and through Outside Expert Committee (OEC).
Oil Industry Development Board (OIDB) and
Further, there is an exclusive website maintained for

Business Responsibility Report

Directorate General of Hydrocarbons (DGH).
grievance redressal (https://grievance.ongc.co.in)
• Shareholders and investors are engaged
through Annual General Meeting, Investor Principle 1.10
& Analysts’ Meets, Investors’ Conferences, Has the Company carried out independent audit/
corporate website www.ongcindia.com and evaluation of the working of this policy by an internal
press releases/ press conferences etc. or external agency?
Principle 1.8 The implementation of obligations with regard to
Corporate Governance as contained in Listing
Does the Company have in-house structure to
Regulation are brought out in the Corporate
implement the policy/policies?
Governance Report and audited by an Independent
The Company follows the laid down policy as per Practicing Company Secretary. Other policies are
the companies’ manuals for its activity such as reviewed from time to time.
– procurement, payment, tendering, contracting,
1. Does the policy relating to ethics, bribery and
human resources, finance and other functions that
corruption cover only the Company?
are governed by well documented policies available
for reference to all concerned. All the policies relating to ethics, bribery and
corruption are “inclusive” and covers Company
Principle 1.9
as well as its employees and all other external 215
Does the Company have a grievance redressal stakeholders.
mechanism related to the policy/policies to address
2. Does it extend to the Group/Joint Ventures/
stakeholders’ grievances related to the policy/
Suppliers/Contractors/NGOs/Others:
policies?
Yes, the policy is extended to suppliers and
Yes. A structured four tier Grievance Management
contractors of the Company.
System is in place in the Company to address
employee grievances related to policy/policies. The 3. How many stakeholder complaints have been
channel of grievance is Reporting Authority of the received in the past financial year and what
employee, Sectional In-charge, Key Executive and percentage was satisfactorily resolved by the
the Appeals Committee. Appeals Committee has management? If so, provide details thereof, in
outside professionals as members and is empowered about 50 words or so.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The following are the details of the representation made by vendors which were dealt thorough various
grievance redressal mechanisms in year 2020– 21:

IEM Cases
Total nos. of Complaints received in FY’21 12
Opinion Issued 7
Withdrawn 3 (including 1 case wherein tender was
cancelled and re-invited)
Sub-judice NIL
Not addressed to IEMs NIL
Rolled over to FY’22 02

Particulars Arbitration Cases OEC Cases

Opening balance as on 01.04.2020 62 21
Added during the year 21 02
Disposed in favour of the Company 01 15*
Disposed Against the Company 06
Closing Balance as on 31.03.2021 76 08
15* OEC is a conciliation proceeding. Recommendations of OEC are put up before the Executive Committee (EC – a Committee of
Functional Directors) or Board considering the disputed amount involved therein. If the recommendation is found reasonable then
same is accepted by EC or Board. Otherwise parties are free to invoke either arbitration or court cases. Hence, it cannot be said that
the matter is decided in favour or against the Company.

Principle 2: Businesses should provide goods and Principle 2.2:

services that are safe and contribute to sustainability
Has the policy been formulated in consultation with
throughout their life cycle.
the relevant stakeholders?
Principle 2.1:
The Company follows all work practices, procedures
Do you have policy/policies for principle 2? and production endeavours pertaining to its area
of activities/operations as mandated by Industry,
The Company pursues its business activities in a
Government and relevant statutory bodies.
safe and sustainable manner. All work practices,
procedures and production endeavours comply with Principle 2.3:
216 the highest Health, Safety and Environment standards
Does the policy conform to any national/international
as per the Industry norms, Government and relevant
standards? If yes, specify. (50 words)
statutory bodies. All its installations are ISO 9001, ISO
14001 and OHSAS 18001 certified. All the products Yes. The Company follows the international standards,
of the Company conform strictly to the respective practices and standard operating procedures as
product-making-procedures, laws, statutes and followed by other E&P companies across the world.
standards governing their production. The Exploration Besides, the Company being a National Oil Company
and Production (E&P) business activities are pursued adheres to all the statutes and policies of the
and aligned in such a manner that E&P of resources Government of India and other statutory bodies such
is done in a sustainable manner encompassing their as DGH and OISD.
life cycle.
 ANNUAL REPORT
2020-21

Business Responsibility Report

217

An exploratory drill ship working in Eastern Offshore Asset of ONGC

 THE UNSTOPPABLE
ENERGY SOLDIERS
Principle 2.4: & administrative machineries to implement the
given policies in the area of safe and sustainable
Has the policy been approved by the Board? If yes, production of goods and services of the Company.
has it been signed by MD/owner/CEO/appropriate The HSE department of the Company along with apex
Board Director? management acts as the nodal department to execute
MoP&NG is the administrative ministry for the and oversee policies pertaining to safe, healthy and
Hydrocarbon industry in the country. All other areas environment friendly operations and compliance with
of operations fall under various laws as enacted by sustainability parameters as mandated and desired.
the Govt. of India. Accordingly, all internal policies, The Carbon Management and Sustainability Group
conforming to the directives of the Government, are in association with work centres take up sustainable
approved by the Board or authority delegated for the development projects across the organisation for
same by the Board. conservation of natural resources and reduction of
carbon and water footprint of the organisation.
Principle 2.5:
Principle 2.9:
Does the Company have a specified committee of the
Board/ Director/Official to oversee the implementation Does the Company have a grievance redressal
of the policy? mechanism related to the policy/policies to address
stakeholders’ grievances related to the policy/
The Board oversees the compliances and
policies?
implementation of the policies through its various
Committees as detailed in the Corporate Governance Yes: Please refer details under Principle 1.9 above.
Report forming part of the Annual Report.
Principle 2.10:
Principle 2.6:
Has the Company carried out independent audit/
Indicate the link for the policy to be viewed online? evaluation of the working of this policy by an internal
Please refer web-link mentioned in Principle 1.6. or external agency?

Principle 2.7: The Company is subjected to various audits such as

Statutory Audit by six firms of Chartered Accountants
Has the policy been formally communicated to all appointed by the Comptroller & Auditor General,
relevant internal and external stakeholders? C&AG Audit, Cost Audit, Secretarial Audit, Technical
Awareness about HSE (Health, Safety & Environment) Audits, Quality Audit, Energy Audit and Safety Audit.
policy is must for every employee and other These audits confirms compliances to various internal
stakeholders directly impacted by the Company’s and external policies.
218 operations. The Company policies and operational
1. List up to 3 of your products or services whose
framework are available on the Company’s website
design has incorporated social or environmental
as well as its intranet.
concerns, risks and/or opportunities.
Principle 2.8: A) Crude oil
Does the Company have in-house structure to B) Natural Gas
implement the policy/policies?
C) LPG
Yes. The Company has well-established in-house
infrastructure, manpower pool, documented It is well known that all the above products are
Standard Operating Procedure and other executive having negative impact on the environment.
 ANNUAL REPORT
2020-21
However, they are also fulfilling the energy ONGC is in process of hiring two number
requirement to sustain the social development. of Water Maker vessels which will generate
Because of the portability, energy – rich nature upto 600MT/day of technical water from
and ability to deliver energy at a constant rate, sea water. This will meet a substantial
fossil fuels are still the major energy sources of part of the technical water requirement of
the world. Offshore Drilling Rigs.

2. For each such product, provide the following 3. Does the Company have procedures in place for
details in respect of resource use (energy, water, sustainable sourcing (including transportation)?
raw material etc.) per unit of product (optional):
The Company has put in place a well-devised
Reduction during sourcing/production/ procedure for sustainable sourcing - Material
distribution achieved since the previous year Management Policy. The Policy has been placed
throughout the value chain? on the Company’s website that helps in required
sourcing for operations and other business
Reduction during usage by consumers (energy,
activities in a steady, continuous and sustainable
water) has been achieved since the previous

Business Responsibility Report

manner. The Company has policies of long-
year?
term contracts and rate-contracts to ensure that
Crude oil and natural gas exploration and operations and business pursuits do not suffer
production activities are energy as well as water owing to externalities.
intensive. The Company has taken up various
Sustainability and Sustainable Development
measures for reducing its energy consumption;
has been embedded in work practices as a
complemented by regular energy audits of all
Corporate Mantra and are aligned with Kyoto
its installations. Water audits of work centres are
protocol negotiations, Green House Gas (GHG)
also carried out to assess the water use and water
mitigation, Carbon management, sustainability
discharge pattern and adopt various adaptation
and greening the vendor chain.
measures.
If yes, what percentage of your inputs was
Uran plant of ONGC receives raw water from
sourced sustainably? Also, provide details
Maharashtra Industrial Development Corporation
thereof, in about 50 words or so.
(MIDC) and average requirement is 15-16 MLD.
Plant is taking up steps to reduce water intake In FY 2020-21, the Company generated 181.41
from MIDC by following measures: million units (MU) of wind energy. Out of which
54.06 MU was consumed internally and the
i. Modernization of ETP is in progress and
remaining was sold. In the same period solar
new facility is being created for generating 219
energy generated, sold and consumed were
2.5 MLD of process water through RO
37.01 MU, 3.34 MU and 33.67 MU respectively.
plant.
To fulfil its internal requirements, the Company
ii. A 10 MLD capacity Seawater Desalination consumes Natural gas, High Speed Diesel (HSD)
Plant, scalable to 20 MLD capacity will and Aviation Turbine Fuel (ATF). Except its C2-
come up in a couple of years. C3 plant in Dahej, natural gas demand of the
Company is fulfilled by internal production. In FY
With these two projects alone, the
2020-21, 11.22% of HSD requirement was fulfilled
Company’s water foot print would be
by internal production and the said percentage
reduced by 15 MLD.
for ATF was 99.90%.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Hazira plant is supplied with fresh water in a Procurement of `20,296.87 Million was carried
sustainable manner by the Company’s own water out from MSME vendors during the financial year
lifting facility that lifts fresh water from River Tapti. 2020-21 (which is 44.86% of annual procurement
Fresh water demand of Ankleshwar Asset is also plan as per Public Procurement Policies for
almost entirely met by two water treatment plants MSEs). The Company has a policy regarding
lifting water from River Tapti and River Narmada. through the Government e-Market Place (GEM).
The Company procured materials worth `4406
4. Has the Company taken any steps to procure
Million during FY 2020-21 as against `700 Million
goods and services from local & small producers,
during FY 2019-20. Supply chain of the Company
including communities surrounding their place of
comprises about 4,000 actively transacting MSE
work?
Business Partners.
Yes, Being a CPSE, the Company’s procurement
5. Does the Company have a mechanism to recycle
policy and practices are guided by the
products and waste? If yes what is the percentage
Government Policies and practices. These are
of recycling of products and waste (separately
based on transparent procurement mechanisms
as <5%, 5-10%, >10%). Also, provide details
which promotes procurement from technically
thereof, in about 50 words or so.
competent suppliers. However, care is also taken
for the interest of local suppliers and contractors Yes. Solid waste, such as condemned equipment,
within the frame-work of guidelines issued by the packaging materials and electronic waste are
Govt. of India. The Company is also procuring auctioned off to ONGC recognized recyclers.
through the Government e-Market Place (GeM). Produced water and waste water are treated
suitably and a portion of it is recycled.
If yes, what steps have been taken to improve
their capacity and capability of local and small Produced water is a by-product in the value
vendors? chain of oil and gas industry. Water comes from
underground oil and gas reservoirs along with
The Company has always encouraged local
hydrocarbons during its production. In its pristine
suppliers to participate in its tendering process and
form, produced water cannot be used in place of
also promote them through vendor development
freshwater as it is highly saline with emulsified oil
programs. Your Company’s continued pursuit in
and other contaminants. This water is disposed
this direction has improved participation of small
of in underground reservoirs, through specially
local players and socio-economic development of
prepared Effluent Disposal wells, after treating
communities in and around operational locations.
them to disposable levels. Produced water has
At work centres, Vendors Meet is regularly held
been one of our focus areas for sustainable water
to explain procedures and policies pertaining
220 use. With certain additional treatment, for which
to the procurements of goods and services to
feasible technologies are now available, this
help small local vendors. The Company has
water is further treated and reused for technical
taken necessary steps for implementation of the
uses like injecting into the formation called ‘Water
public procurement policy for procurement from
Injection’ for the purpose of maintaining formation
Medium and Small Enterprise (MSEs). Necessary
pressure.
provisions have been incorporated in all tenders
for procurement of materials and services. In Another major hazardous waste generated during
general minimum 25% of the requirement has the processing is oil sludge from tank bottom,
been reserved for eligible MSEs in tenders. etc. as well as oil-soaked sand. This waste is
 ANNUAL REPORT
2020-21
treated by environmentally sound bioremediation Principle 3.4
techniques using a consortium of bacteria
Has the policy been approved by the Board? If yes,
known as Oil Zappers. The technology uses a
has it been signed by MD/owner/CEO/appropriate
consortium of Hydrocarbon degrading bacteria,
Board Director?
which reduces the Total Petroleum Hydrocarbons
levels in waste/soil to less than one percent. All HR policies are approved by Board or Competent
During FY’21, around 74,569 MT of oily sludge/oil Authorities as delegated by the Board and signed
contaminated waste was bio-remediated using accordingly.
this technology.
Principle 3.5
Principle 3: Businesses should promote the wellbeing
Does the Company have a specified committee of the
of all employees.
Board/ Director/Official to oversee the implementation
Principle 3.1 of the policy?

Do you have policy/policies for principle 3? The Board of Directors have constituted a Board
level Nomination and Remuneration Committee to

Business Responsibility Report

Yes. The Company has a wide range of HR policies oversee the major decisions in the area of human
covering all categories of the employees (workers, resources.
officers, women employees, SC/ST employees, sports
person etc.). It addresses all aspect of professional Principle 3.6
skill & knowledge up-gradation, employee motivation Indicate the link for the policy to be viewed online?
and welfare measures, employees’ health (Preliminary
Medical Examination) and general wellbeing The HR policy’s and order/circulars related
measures, women empowerment, empowerment to Human Resource are web hosted on
of SC/ST and other disadvantageous class of “reports.ongc.co.in” for wider circulation among
employees, separation/superannuation and post- employees and at “ongcindia.com” for stakeholders
retirement welfare measures. including prospective employees.

Principle 3.2 Principle 3.7

Has the policy been formulated in consultation with Has the policy been formally communicated to all
the relevant stakeholders? relevant internal and external stakeholders?

The HR policies of the Company are formulated in line Yes. The Company’s HR policies are available on-
with DPE guidelines and after due consultation with line on the Company’s website as well as on the
Collectives and representatives of employees. Company’s internal portal. All policies, procedures
and work-flows are documented and are available
221
Principle 3.3 on-line for easy access, use and information by all
Does the policy conform to any national/international employees. Any new initiatives, changes or new
standards? If yes, specify? (50 words) announcements are communicated to employees
on-line through internal websites and also through
HR Policies of the Company conform to the best of formal orders posted on work-centre’s intranet notice
International and National standards. The Company boards and through circulation to individuals.
is perceived to be one of the best employers in the
country.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Principle 3.8 The Company has carried out independent audit/
evaluation of HR policies under the PCMM framework
Does the Company have in-house structure to
during 2018-19 through external consultant.
implement the policy/policies?
1. Total number of employees : 28,479 (As on
The Company has a structured Human Resources
31.03.2021)
Department, headed by Director (HR), which
implements the policies throughout the Company. 2. Total number of employees hired on temporary/
contractual/casual basis.
Principle 3.9
• Contractual workers : 22,801
Does the Company have a grievance redressal (Incl. Seasonal – 2,030 and LSTK contract
mechanism related to the policy/policies to address workers – 1,592)
stakeholders’ grievances related to the policy/
• Contract Para Medics/Medics : 375
policies?
• Tenure based : 572
Yes. The Company has a structured employees’
grievance redressal mechanism. Details have been • Casual workers/contingent : 198
provided at Principle 1.9 above. The mechanism/ 3. Please indicate the number of permanent
procedures allow employees to escalate their women employees : 2,123
grievances to the level of Director (HR) of the Company
4. Please indicate the number of permanent
and in some case even to the Executive Committee
employees with disabilities : 419
for justifiable redressal of issues and concerns.
Collectives and Officers association are engaged/ 5. Do you have an employee association that is
associated at every stage to discuss/ negotiate recognized by management?
the policy issues and address their concerns. An Yes.
Executive Director level position oversees Employee
Relations and Industrial Relations (ER&IR) and A. Executive Cadre: The Association of
maintains cordial, motivated and a spirited work Scientific and Technical Officers (ASTO)
atmosphere. All the employees have access to CMD has been recognized to represent the
and Directors through e-mails as well. issues related to the executives.

B. Non-Executive Cadre: Twelve Recognized

Principle 3.10
Unions as under:
Has the Company carried out independent audit/
i. ONGC (WoU) Karmachari
evaluation of the working of this policy by an internal
Sanghatana, Mumbai
or external agency?
222 ii. ONGC Employee’s Association,
The HR policies and practices are reviewed at regular Kolkata
intervals taking cognizance of emerging realities. iii. Petroleum Employees Union,
Regular independent audits, both internal and Chennai
external, gets carried out to gauge level of employee
iv. Petroleum Employees Union,
engagement and satisfaction. Wherever desired and
Karaikal
warranted, expert advice from external agencies/
consultancies is solicited to ramp up our practices/ v. Petroleum Employees Union,
policies to best of industry standards. Rajahmundry
vi. Petroleum Employees Union,
Ahmedabad
 ANNUAL REPORT
2020-21
vii. ONGC Mazdoor Sangh, Ankleshwar 6. What percentage of your permanent employees
viii. ONGC Employees Mazdoor Sabha, is members of this recognized employee
Mehsana association?
ix. ONGC Purbanchal Employee’s Most executives are members of ASTO. The
Association, Sivasagar/Jorhat non-executive cadres of employees are affiliated
x. ONGC Staff Union, Dehradun to various recognized unions. ASTO has a
xi. ONGC Employees’ Union, Agartala membership of more than 80% of executives.
Twelve recognized unions have been conferred
xii. Trade Union of ONGC Workers,
recognition by the Company on the basis of
Silchar.
verification through secret ballot, conducted
Besides above, All India SC/ST by Central Industrial Relations Machinery
Employees Welfare Association and (CIRM), Government of India. They represent
All India OBC/MOBC Employees all the unionized categories of employees in
Welfare Association are also their respective work-centres, though some
recognized by the Company to employees may hold membership with un-

Business Responsibility Report

represent the specific employee recognized unions.
groups/categories.

7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual
harassment in the last financial year and pending, as at the end of the financial year.

Sl. No. of complaints filed No. of complaints pending at

Category
No during the financial year the end of the financial year

1 Child labour/forced labour/ NIL NIL

involuntary labour

2 Sexual harassment 01 NIL

3 Discriminatory employment NIL NIL

8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the
last year?

• Permanent Employees 19,805 employees were provided training through all the institutes of
ONGC covering 1,42,729 training person days including permanent 223
• Permanent Women women employees and employees with disabilities.
Employees
Apart from the above, casual, temporary and contractual employees
• Casual/Temporary/ were given requisite training in safety of operations. Mines Vocational
Contractual Employees Training, a mandatory training as per Mines Act, was provided to 2,643
• Employees with Disabilities personnel (976 Company Employees and 1,598 Contract Personnel)
during 2020-21. Additionally, 18,556 personnel (regular employees
& contract workers) at rigs/ installations underwent Ten Safety Rules
Awareness Programs in 2020-21.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Apart from the above, number of persons trained in IPSHEM, Goa is given below:

Sl. Particulars Number Number of Total Man- Number

No. of Training Participants hours of female
Programs participants
01. Total Training programs 142 5,502 38,538 266
02. Health and Safety related 57 2,507 19,512 156
training programmes
03. Firefighting / First Aid 76 2,611 15,570 87
Training Programs

Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders,
especially those who are disadvantaged, vulnerable and marginalized.

Principle 4.1

Do you have policy/policies for principle 4?

Yes. The Company complies with Government directives for upliftment of weaker sections of the society. It
is fully committed to the welfare of marginalized and vulnerable sections of society. Each Strategic Business
Units (SBUs) of your Company has the responsibility to identify and engage with relevant stakeholders to
establish a symbiotic relationship.

The Company has a number of policies in place to address the interests of all stakeholders. As a CPSE,
the Company pursues all such policies as mandated by the Government. Corporate Social Responsibility
(CSR) policy along with a host of policies of the Government of India are directed towards disadvantaged,
vulnerable and marginalized section of the society. Your Company’s goal is to: Connect, Listen, Respond,
Sustain’ – leading to business value creation with Economic, Social and Environmental sustainability in
view.

As per CSR policy, the Company has a well-defined set of objectives, clearly delineated beneficiaries,
strategy and project activities which characterize its social projects. The relevant provisions of Section 135
and Schedule VII of the Companies Act, 2013 have also been taken into account while finalizing the aforesaid
policy. The projects are designed to yield discernible, long-term, sustainable benefits for the communities
specially disadvantaged, vulnerable and marginalized sections. By contributing towards community
developments, the Company fosters a symbiotic relationship with its stakeholders across communities
to create more employment opportunities to realize its strategic objective of growing responsibility while
224 improving the livelihoods of people.

The table below depicts the manner in which the Company engages to address the interest of all stake-
holders:

Stakeholders Mode of engagement

Customers Structured engagement through Crude Oil Sales Agreement (COSA)
& Gas Sales Agreement (GSA); Regular / periodic meetings with B2B
partners and also through external stakeholders meet
Communities Direct engagement at work centers through CSR programmes, HR
department, Corporate Communications, Installation Managers, Mines
Managers, and Asset/Basin/Plant Managers
 ANNUAL REPORT
2020-21

Stakeholders Mode of engagement

Business partners/ Vendor Meets; Business Partner Meets; Pre-bid Conferences and also
contractors/vendors through External Stakeholders Meet
Contract workers Safety trainings and SAHAYOG Scheme
Employees Open House; People Connect Meetings, Newsletters, Email, Employee
web portal and also through Internal Stakeholders Meet, Regular bilateral
meetings with employee Unions and Associations
Regulatory bodies (DGMS, Structured engagement through meetings with administrative Ministry
NSE, BSE, SEBI, OISD, MoP&NG, DGH, DPE, OISD, OIDB, etc. and also through External
OIDB, etc.) & Government Stakeholder Meet
bodies
Shareholders, investors Investor and Analyst Meet; AGM; Investor Conferences; Conference
Calls, One-on-One and Group Meetings; Corporate web site and Press
Releases/ Press Conference and also through External Stakeholder Meet

Business Responsibility Report

Principle 4.2 CSR Committee is entrusted with the
responsibility of overall implementation and
Has the policy been formulated in consultation
monitoring of CSR activities. Director (HR)
with the relevant stakeholders?
has been delegated power to implement CSR
The CSR policy is in compliance with the initiatives. Further, in line with the approval of
Companies Act, 2013 read with Companies the Board, a non-profit entity by name ‘ONGC
(CSR Policy) Rules and the applicable DPE Foundation’ has been formed and registered
Guidelines. under the Indian Trust Act, 1882 for carrying out
Principle 4.3 CSR activities.

Does the policy conform to any national/ Principle 4.6

international standards? If yes, specify?
Indicate the link for the policy to be viewed
The policy and laid down procedures conform to online?
statutes and policies of the Govt. of India, DPE
and other statutory bodies. The website of ONGC, www.ongcindia.com, has
a link to the CSR Dept. page, where the CSR
Principle 4.4 policy is available for all.
Has the policy been approved by the Board?
Principle 4.7
If yes, has it been signed by MD/owner/CEO/ 225
appropriate Board Director? Has the policy been formally communicated to
all relevant internal and external stakeholders?
All such policies being pursued by the Company
are duly approved by the Board of Directors and Yes, for internal stakeholders, all policies
uploaded on the Company’s website. are available on Company website and also
Principle 4.5 perpetuated through its Collectives, Officers
Association and other relevant associations.
Does the Company have a specified committee For external stakeholders, communication in
of the Board/ Director/Official to oversee the this regard is pursued through interactions at
implementation of the policy? multiple levels.
Yes.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Principle 4.8 and vulnerable marginal stakeholders.
Besides this over a last couple of years the
Does the Company have in-house structure to
Company has carried out baseline survey
implement the policy/policies?
and need assessment around a few of our
The Company has a structured framework and areas of operation to have greater insight
laid down well documented procedures in place into the needs of the community through
to execute and implement its policies. There is structured interactions and feedbacks.
an exclusive Department for CSR - headed by 3. Are there any special initiatives taken
Chief CSR, to implement CSR activities of the by the company to engage with
Company. the disadvantaged, vulnerable and
Principle 4.9 marginalized stakeholders? If so, provide
details thereof, in about 50 words or so.
Does the Company have a grievance redressal
mechanism related to the policy/policies to CSR policy of the Company covers
address the stakeholders’ grievance related to CSR Projects/Programmes undertaken
the policy/policies? by it within the geographical limits of
India, preferably towards the benefit of
Yes. marginalized, disadvantaged, poor and
deprived sections of the community and
Principle 4.10
the environment. This way the ultimate
Has the Company carried out independent objective is to reach the bottom of the
audit/evaluation of the working of this policy by pyramid in demographic strata and touch
an internal or external agency? their lives in a positive manner. Thus, while
the Company has engaged in serving the
Yes.
society through various welfare measures
1. Has the Company mapped its internal and since its inception, it has now adopted a
external stakeholders? more structured approach in undertaking
Yes. such welfare measures. Many projects
related to infrastructure development,
2. Out of the above, has the Company
education and healthcare have been
identified the disadvantaged, vulnerable &
undertaken in remote areas mainly
marginalized stakeholders?
populated with disadvantaged groups.
Yes. Over the years, Company has moved
from a ‘charity-based philanthropy’ Principle 5: Businesses should respect and
226 approach to a ‘stakeholder participation’ promote human rights
approach where the communities in and
Principle 5.1
around its operational areas are seen as
important stakeholders and therefore their Do you have policy/policies for principle 5?
development is seen in alignment with the
All policies of the Company take into account the
Company’s business development. Since
Human Rights of not only employees but also
areas of operation of the Company are in
people likely to be affected by the operations of
remote and backward areas, the process
the Company.
of engaging with the external stakeholders,
including the community around our The Company is committed to conducting its
areas of operation, gives significant input business operations and strategies with the
relating to the needs of the disadvantaged ten universally accepted principles in the area
 ANNUAL REPORT
2020-21
of Human Rights, Child labour, Anti-corruption as its fulcrum. The Fair Wage Policy for contract
and Environment. The Company embraces labourers was formulated in consultation with
and supports those ten principles, particularly trade unions representing these workmen.
that on Human Rights viz.: “Businesses
Principle 5.3
should support and respect the protection of
internationally proclaimed human rights” and Does the policy conform to any national/
“Make sure that they are not complicit in human international standards? If yes, specify. (50
rights abuses”. The Company is fully committed words)
to the principles of United Nations Global The policies of the Company are in line with
Compact on human rights and subscribe to national standards and relevant international
the international agreements/conventions such standards for its operations and business
as Kyoto protocol, Montreal Protocol, UNCLOS pursuits.
(MMD), SOLAS and MARPOL within the
framework of Government of India directives. Principle 5.4
The Company ensures compliance with various Has the policy been approved by the Board?

Business Responsibility Report

labour legislations such as Payment of Wages If yes, has it been signed by MD/owner/CEO/
Act 1936, Minimum Wages Act 1948, Equal appropriate Board Director?
Remuneration Act 1976, Industrial Disputes Act
All the policies are approved either by the Board
1947, Employees State Insurance Act 1948,
or by other Competent Authorities.
Employees Provident fund and Miscellaneous
Provisions Act 1952, Contract Labour (R&A) Act, Principle 5.5
1970, Child Labour (Prohibition and Regulation) Does the Company have a specified committee
Act 1986 etc. As a responsible principal employer, of the Board/ Director/Official to oversee the
the Company ensures that contract labours are implementation of the policy?
treated fairly as per law and for any complaints
or disputes, the contractor is advised to settle Each Policy incorporates safeguards to ensure
the issue in accordance with the law. Various that its functioning is overseen by a Competent
in-house policies like service rules, leave rules, Authority / Committee.
gratuity rule, CPF rules, HBA (House Building Principle 5.6
Advance), conveyance advance, education
loans also confirm to Human Rights values. Indicate the link for the policy to be viewed
The Company has also implemented Fair Wage online?
Policy for contractors’ workers to provide them The website of the Company www.ongcindia.
wages over and above the minimum wages and
other statutory and non-statutory benefits.
com has the link to various policies, rules and 227
regulations of the Company.
Principle 5.2
Principle 5.7
Has the policy been formulated in consultation
Has the policy been formally communicated to
with the relevant stakeholders?
all relevant internal and external stakeholders?
The Company being a CPSE is primarily guided
by Government of India policies. The entire All Policies of the Company have been suitably
gamut of its policies, rules and regulations communicated to concerned stakeholders, both
which govern its functioning have “people first” internal as well as external.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Principle 5.8 There is an integrated HSE Policy which guides
the HSE management system of the Company.
Does the Company have in-house structure to
Additionally, there are dedicated Environment
implement the policy/policies?
Policy and E-Waste Policy. Applicable Acts,
Yes. The Company has in place a structured set- Rules, Regulations and statutory guidelines
up with adequate empowerment to implement pertaining to HSE are followed.
requisite policies. Environment Impact Assessment is done and
Principle 5.9 requisite clearances are taken before starting of
projects. The site is restored as per applicable
Does the Company have a grievance redressal guidelines, in case of completion/ abandonment
mechanism related to the policy/policies to of activities, the Company continually strives
address stakeholders’ grievances related to the to mitigate the environmental impact that
policy/policies? may arise from its business activities such as
Yes, as stated at Sl. No. 1.9 above. exploration, drilling & production, by investing in
state-of-art technologies, effluent & solid waste
Principle 5.10 management, environment monitoring and
Has the Company carried out independent reporting, bio-diversity conservation efforts and
audit/evaluation of the working of this policy by up-gradation and sustenance of environment
an internal or external agency? management systems.
In order to maintain high standards, the Company
The policies, rules and regulations in the
goes beyond the Regulatory requirements and
direction as stipulated by the principle 5 are
practices proactive HSE Management System.
subject to periodic audit/reviews both by internal
The HSE Management System is based on
and external agencies.
International Standards, ISO 9001, OHSAS
1. Does the policy of the Company on human 18001/ISO 45001 and ISO 14001.
rights cover only the Company or extend
To check the conformity of activities and
to the Group/Joint Ventures/Suppliers/
processes with the existing HSE management
Contractors/NGOs/Others?
systems as well as to prevalent rules, regulations,
Yes, the policies towards upholding the guidelines and standards, regular audits are
Human Rights extend to suppliers and being conducted.
contractors of the Company. Principle 6.2
2. How many stakeholder complaints have Has the policy been formulated in consultation
228 been received in the past financial year and with the relevant stakeholders?
what percent was satisfactorily resolved by
the management? Yes. All policies of the Company have been
formulated in consultation with stakeholders,
Please refer to para 3 of Principle 1.10. primarily in consultation with and under
Principle 6: Business should respect, protect, the guidelines of MoP&NG and Ministry
and make efforts to restore the environment of Environment, Forest & Climate Change
(MoEF&CC), Govt. of India and other statutory
Principle 6.1 bodies.
Do you have policy/policies for principle 6?
 ANNUAL REPORT
2020-21
Principle 6.3 Principle 6.7
Does the policy conform to any national/ Has the policy been formally communicated to
international standards? If yes, specify? (50 all relevant internal and external stakeholders?
words)
The HSE Policy is displayed at all the work
Applicable rules and regulations of the nation,
centres and has been communicated to each
OISD standards, DGMS guidelines, ISO
employee as well as contractual employees.
standards, API standards, Kyoto Protocol,
Further, the Company continuously engages
Scientific data and Best Practices are considered
with stakeholders at multiple levels through
while framing up policies. Thus in principle,
diverse channels, which helps in the formulation
all policies conform to national/ international
of Company’s policies directed at progressively
standards, guidelines, and best practices. The
enriching practices and sustainable operations
HSE Management System of the Company is in
over time.
line with ISO – 9001, 14001 and OSHAS – 18001
standards. Principle 6.8

Business Responsibility Report

Principle 6.4 Does the Company have in-house structure to
Has the policy been approved by the Board? implement the policy/policies?
If yes, has it been signed by MD/owner/CEO/
The Company has HSE Department at Corporate
appropriate Board Director?
level as well as at the Strategic Business Units
Yes, the HSE policy has been approved by the (SBU’s) level comprising of Assets, Basin,
Executive Committee and signed by Chairman Plants and Institutes. Safety Officers suitably
& Managing Director. trained and certified are posted at SBU levels
Principle 6.5 to effectively implement the policies and report
safety performance.
Does the Company have a specified committee
of the Board/Director/Official to oversee the Principle 6.9
implementation of the policy?
Does the Company have a grievance redressal
There is an HSE Committee of the Board, chaired mechanism related to the policy/policies to
by an Independent Director. The Board Level address stakeholders’ grievances related to the
Committee monitors all issues concerning HSE, policy/policies?
including policy matters. Further, the Director –
I/c HSE has the overall responsibility of matters Yes. In order to make our stakeholder
pertaining to Health, Safety and Environment in interface more collaborative, the Company
the Company. has a public grievance portal at its website 229
www.ongcindia.com. The portal is a step further
Principle 6.6
to empower each stakeholder viz. citizen/
Indicate the link for the policy to be viewed vendor/employee/former-employee to register
online? their grievances through a single window on
The website of the Company, www.ongcindia. corporate web portal. A structured apparatus has
com has a separate link for HSE activities. The been operationalized to process the grievances
employees can view/download the policies from within a limited time frame to establish ethics
the Company’s intranet - reports.ongc.co.in. and transparency.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Principle 6.10 issues related to climate change risks
and opportunities arising from carbon
Has the Company carried out independent
mitigation initiatives. The management
audit/evaluation of the working of this policy by
has been active in engaging with national
an internal or external agency?
and international climate change forum to
Conformity to policies, statutes, standards, ensure that the organization stays current
guidelines and practices is checked during with global climate change negotiations and
regular internal and external audits. HSE India’s domestic commitments. Fugitive
management system, based on HSE Policy, is methane emissions from oil and natural
also checked by third party during surveillance gas systems are primarily the result of
& certifications audits for ISO-9001, ISO-14001, normal operations and system disruptions.
OHSAS-18001/ISO-45001 certifications. These emissions can be cost-effectively
reduced by upgrading technologies or
1. Does the policy related to Principle 6 cover
equipment, and by improving operations.
only the company or extends to the Group/
The Global Methane Initiative (GMI) is an
Joint Ventures/Suppliers/Contractors/
action-oriented initiative from US-EPA to
NGOs/others.
reduce global fugitive methane emissions
The HSE policy and processes cover to enhance economic growth, promote
all the stakeholders of the Company. All energy security, improve the environment,
suppliers and other Business partners and reduce greenhouse gases emissions.
doing business with the Company within The Company was the first non-American
the Company’s premise subscribes to oil company to enter into a collaboration
the Company’s policies and commitment with US-EPA, under the Natural Gas STAR
to the environment. The policies of wholly Program and developed an in-house GMI
owned subsidiaries and joint ventures team for conducting GMI survey. Now
are based on Company’s HSE Policy on The GMI team conducts regular fugitive
the tenets and premises of environmental emission survey at production installations/
commitment. All statutes, regulations and plants and corrective actions are taken to
policies are part of Standard Terms and arrest those leakages.
Conditions of the Supply/Work Order/LOA.
3. Does the Company identify and assess
2. Does the company have strategies/ potential environmental risks?
initiatives to address global environmental
Yes. Environment Impact Assessment
issues such as climate change, global
is done before start of any project
230 warming, etc.?
for identification and assessment of
The Company is aware of the risks arising associated Environmental Impacts and
due to climate change. It has a dedicated Risks. Based on the identified risks,
Carbon Management & Sustainability Environment Management Plans are
Group (CM&SG) with a specific mandate prepared to eliminate/minimize the risks
to position the Company as the leading and impacts. Environmental/Wildlife/
organization in Sustainable Development Forest/Coastal clearances, as applicable,
(SD) and to voluntarily take up carbon are taken from relevant authorities at Union
management as an activity to synergize and State level. Projects are established
all business activities with sustainable only after obtaining the required clearances.
development particularly to address The Company has implemented globally
 ANNUAL REPORT
2020-21
recognized Environment Management various work centers of ONGC, taking
system like ISO 14001 at all its operational the total to 310,000 LED Lights under
work centres. implementation of LED lighting program.

4. Does the company have any project related Continuous innovation and induction of
to Clean Development Mechanism? If so, new technologies is business as usual in
provide details thereof, in about 50 words the Company. An initiative to install 5 micro-
or so. turbines, 2 in Mumbai High Asset and 3
in Mehsana Asset, has been taken up in
The Company has been a pioneer in
the reporting year. The project is expected
India to adopt the Kyoto protocol and
to be completed in FY 2021-22. Micro-
commenced its CDM journey in 2006. So
Turbines are installed for producing electric
far, we have registered a total of 15 CDM
power in installations of remote areas. HSD
projects with United Nations Framework
is generally used for power generation in
Convention on Climate Change (UNFCCC)
remote areas. But the Micro turbines utilize
with an Emissions Reduction potential of
low pressure natural gas, usually flared

Business Responsibility Report

approx. 2.1 million TCO2 equivalent every
in the absence of feasible mechanism for
year. In spite of the sluggish carbon market,
its evacuation. Thus, the Micro turbines
the Company is continuing the verification
offer the double advantages of utilization
of existing CDM projects and registration
of clean fuel and reduced flaring. Dynamic
of new CDM projects for protection of
Gas Blending in large diesel engines of
our environment. Presently 03 new CDM
Caterpillar Engines were also taken up
projects are under validation for registering
which reduces the diesel consumption in
them as new CDM projects.
these engines. Both these technologies
5. Has the company undertaken any other would be scaled up for application in other
initiatives on – clean technology, energy work centres/fields.
efficiency, renewable energy, etc.?
If yes, please give hyperlink for web page:
Yes. The Company has taken a host of
http://www.ongcindia.com/wps/wcm/
initiatives to pursue clean technologies,
connect/ongcindia/Home/Initiatives/
energy efficiency measures and renewable
Corporate+Sustainability/
energy pursuits. During FY 2020-21, the
Company has implemented about 6.09 6. Are the Emissions/Waste generated by
MW of Solar Power Plants making the total the company within the permissible limits
installed capacity of solar power to 31 MW. given by CPCB/SPCB for the financial year
231
Another 6.6 MW Solar Power Projects are being reported?
under construction and will be functional
Yes. The emissions and waste generated
very soon. The solar capacity will be further
by the Company is within permissible
increased to 50 MW by 2021-22. Together
limits. Half Yearly Environment Compliance
with the 153 MW Wind Power, the total
reports are submitted by the respective
installed capacity of Renewable Energy is
work units to respective State Pollution
184 MW as on 31.03.2021.
Control Boards (SPCB). All the installations
During the year over 30,000 conventional comply with environmental regulations.
lights were replaced with LED lights across Procedures are in place for storage,
 THE UNSTOPPABLE
ENERGY SOLDIERS
handling and disposal of hazardous • Federation of Indian Chambers of
chemicals and wastes. Commerce and Industry (FICCI)
7. Number of show cause/legal notices • Confederation of Indian Industries (CII)
received from CPCB/SPCB which are
• Standing Conference on Public Enterprises
pending (i.e. not resolved to satisfaction)
(SCOPE)
as on end of Financial Year:
• Federation of Indian Petroleum Industry
There are two show cause/legal notices
(FIPI)
received from CPCB/SPCB in 2020-21
which are pending and details of said 2. Have you advocated/lobbied through
notices are as follows: above associations for the advancement or
improvement of public good? Yes/No; if yes
I. Cambay Asset: Show Cause notice,
specify the broad areas (drop box: Governance
dated 24.3.2021, was received from
and Administration, Economic Reforms,
Gujarat Pollution Control Board.
Inclusive Development Policies, Energy security,
Reply has been submitted to GPCB.
Water, Food Security, Sustainable Business
II. Ahmedabad Asset: Show Cause Principles, Others)
notice, dated 25.03.2021, was
The Company has always advocated
received from Gujarat Pollution
constructive suggestion in areas of taxation
Control Board. Reply has been
matters, pricing policies, exploration and
submitted to GPCB.
licensing policies, policies towards pursuing
Principle 7: Businesses, when engaged in the energy security, sustainable development,
influencing public and regulatory policy, should corporate social responsibility and amendment
do so in a responsible manner to labour laws that are beneficial to the Industry
The Company being a CPSE is under the control in specific and society in general. Further,
of the Government of India, through the Ministry details are available on the Company’s website
of Petroleum & Natural Gas. www.ongcindia.com.

Public and regulatory policies relating to Principle 8: Businesses should support

operation of E&P Companies in India are inclusive growth and equitable development.
formulated by the Government of India. The Principle 8.1
Company, per se, is not engaged in influencing
public and regulatory policy. Being a CPSE, Do you have policy/policies for principle 8?
the necessity of having a policy on influencing
232 the public and regulatory policies is not felt.
The Company has a structured mechanism for
CSR. It aims to strengthen the fabric of society
However, all outward communications are that the Company operates in. Through partners
governed by business ethics and transparency. we identify the needs of the communities, and
Principle 7.10 select and implement programs that address
those needs. The CSR projects are targeted
1. Is your Company a member of any trade and
towards empowering the weakest sections of
chamber or association? If Yes, Name only those
the society, such as children, women, and the
major ones that your business deals with:
elderly. The programs generate employment
Yes. The Company has association with a and business opportunities, improving the living
number of trade chambers and associations, standards of the community in turn improving
such as,: the economy of the region.
 ANNUAL REPORT
2020-21
Apart from CSR activities, many voluntary The Company’s website, www.ongcindia.com,
activities are also taken up by the Company has link to CSR policy.
to help communities in operational areas.
Principle 8.7
Distribution of drinking water to the surrounding
villages is one of the major activities in some Has the policy been formally communicated to
water scarce operational areas. Also, during all relevant internal and external stakeholders?
preparation of new drill sites, the Company
Yes, for internal stakeholders, all these policies
prepared roads or broadens existing roads
are available on-line on Company websites and
in rural areas that come as a boon to the rural
also perpetuated through its Collectives, Officers
populace.
Association and other relevant associations.
Principle 8.2 For external stakeholders, communication in
this regard is pursued through interactions at
Has the policy been formulated in consultation
multiple levels.
with the relevant stakeholders?
The Company being a CPSE follows CSR Principle 8.8

Business Responsibility Report

Policy as per DPE Guidelines formulated by the Does the Company have in-house structure to
Government of India and applicable provisions implement the policy/ policies?
of the Companies Act, 2013.
The Company has a structured framework and
Principle 8.3 laid down well documented procedures in place
Does the policy conform to any national/ to execute and implement its policies. There
international standards? if Yes, specify? (50 is an exclusive Department for CSR- headed
words) by Chief CSR, to implement CSR activities
throughout the organization.
The CSR policy complies with Companies
Act, 2013 and DPE Guidelines which meet Principle 8.9
International norms on CSR. Does the Company have a grievance redressal
Principle 8.4 mechanism related to the policy/policies to
address the stakeholders’ grievance related to
Has the policy been approved by the Board?
the policy/policies?
If Yes, has it been signed by MD/owner/ CEO/
appropriate Board Director? Yes. Please refer Principle 1.9 above.
Yes, CSR policy of the Company is approved Principle 8.10
by the Board. All activities pursued under CSR
policy schemes are approved by the Competent
Has the Company carried out independent 233
audit/evaluation of the working of this policy by
Authority.
an internal or external agency?
Principle 8.5
Yes. The policy is vetted by Indian Institute of
Does the Company have a specified committee Corporate Affairs in FY 2020-21.
of the Board/ Director/ Official to oversee the
implementation of the policy? 1. Does the company have specified
programmes/initiatives/projects in pursuit
Please refer Principle 4.5 of the Report. of the policy related to Principle 8?
Principle 8.6 The Company is committed to
Indicate the link for the policy to be viewed understand the developmental needs of
online? economically weaker, differently abled
 THE UNSTOPPABLE
ENERGY SOLDIERS
and less privileged sections in identified in order to ascertain the tangible and
geographical locations in India primarily intangible benefits to the target population
around the remote operational areas of the and also to incorporate necessary
company thus creating a more inclusive changes in project implementation based
and equitable world. on beneficiary feedback. During the year
2020-21 six Impact Assessment Studies
CSR has structured mechanism of
were carried out in respect of major CSR
engaging and benefiting the local
projects approved by the Board of ONGC.
communities in the areas where we
operate. It aims to strengthen the fabric of 4. What is your company’s direct contribution
the society that we operate in. Through our to community development projects-
implementation partners we identify the Amount in INR and the details of the
needs of the communities, and select and projects undertaken?
implement programs that address those
`5,530.74 million has been spent by
needs. CSR projects of the Company
ONGC during 2020-21 on community
are targeted towards empowering the
development projects as detailed at
weakest sections of the society, such
Annexure-D to the Annexure to Board’s
as children, women, and the elderly.
Report 2020-21.
Our programs generate employment &
business opportunities, improving the 5. Have you taken steps to ensure that
living standards of the community in turn this community development initiative is
improving the economy of the region. successfully adopted by the community?
Please explain in 50 words, or so.
2. Are the programs/projects undertaken
through in-house team/own foundation/ The Company endeavors to understand
external NGO/government structures/any the stakeholder expectations through
other organization? a structured engagement process and
communication strategy and leverages
The CSR projects or programs are this understanding for betterment of all
implemented through in-house CSR team the stakeholders. Company’s endeavor
and ONGC Foundation. ONGC also in this regard is uniquely positioned to
implements its CSR agenda through other herald a business paradigm that is based
trust, society or company established on an interconnected vision of all people’s
under Section-8 of Companies Act, 2013, well-being, growth and contentment: by
having a track record of three years in enabling citizens and local communities
234 undertaking similar programs or projects. to be informed partners in the enterprise,
3. Have you done any impact assessment of be accountable in its consumption of
your initiative? environmental resources; and foster local
communities that are prosperous and
In the case of Board approved CSR Projects, content; and manage their resources
Impact Assessments studies are carried commonly and sustainably. To generate
out by reputed institutions like IIT Delhi, goodwill in the communities in and around
IIM Nagpur, Kasturbha Medical College, its operational areas by not only mitigating
Manipal University, Madras School of operational impact but through creating
Social Work, Institute of Public Enterprises, social value that is sustainable and
Hyderabad and other such institutions inclusive.
 ANNUAL REPORT
2020-21
Principle 9: Businesses should engage with and The specifications of quality and measurement in
provide value to their customers and consumers COSA/GSA are in accordance with International
in a responsible manner standards. Moreover, the Company ensures that
policies followed are as per guidelines of the
Principle 9.1
Government of India.
Do you have policy/policies for principle 9? Principle 9.4
The Company engages with customers and Has the policy been approved by the Board?
consumers in a manner that demonstrates best If yes, has it been signed by MD/owner/CEO/
business practices and is a win-win proposition appropriate Board Director?
for all doing business with the Company as Yes. The COSA/ GSA are signed by the
per mutually agreed business principles and designated authorities after seeking approval as
deliverables. The Company’s main customers per Book of Delegated Powers 2015.
are Oil Refining & Gas Marketing Companies
to which the Company’s produce that is oil Principle 9.5
and gas is allocated by the Government of Does the Company have a specified committee

Business Responsibility Report

India. The Company enters into a Crude Oil of the Board/ Director/Official to oversee the
Sale Agreement (COSA) with the Oil Marketing implementation of the policy?
Companies (OMCs) and Gas Sales Agreement The Company has a structured and dedicated
(GSA) with GAIL to whom it sells the Crude Oil, marketing department/establishment headed
Natural Gas etc., following the crude oil /gas by E7/E8/E9 level executive to oversee
sales allocations as done by Govt. of India. The implementation of relevant policies in this
COSA/GSA incorporates suitable provisions regard.
with regard to the quality and quantity of the
Principle 9.6
product being supplied by ONGC. Besides this,
the Company also sells its produce to other Indicate the link for the policy to be viewed
direct customers under GSA. online?

Principle 9.2 COSA/GSA being a bipartite agreement is a

confidential document and is not available for
Has the policy been formulated in consultation inspection to the public. Further the general
with the relevant stakeholders? guidelines on standard terms of business and
The COSA/GSA of the Company has been also contract terms and conditions of conducting
arrived at in consultation with OMCs and Gas business with the Company are available on the
marketing companies on mutually agreed terms. website www.ongcindia.com.
Other sales or purchase agreement are also
235
Principle 9.7
agreed mutually. The Company has therefore
Has the policy been formally communicated to
laid down policies and guidelines for engaging
all relevant internal and external stakeholders?
with and providing value to their customers and
consumers in a responsible manner. Yes.

Principle 9.3 Principle 9.8

Does the Company have in-house structure to
Does the policy conform to any national/
implement the policy/policies?
international standards? If yes, specify? (50
words) As given in response against 9.5 above.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Principle 9.9 All Natural Gas supplied by the Company
to various customers conforms to the
Does the Company have a grievance redressal
mechanism related to the policy/policies to agreed contractual specifications.
address stakeholders’ grievances related to the All VAP’s are supplied with batch-wise
policy/policies? test reports and standard handling
procedures to be followed in line with
Yes. COSA/GSA has a built in mechanism for
OISD/other statutory standards. Relevant
stakeholders’ grievance redressal.
BIS specifications (if applicable) and
Principle 9.10 quality certificates with parameters are
Has the Company carried out independent issued while dispatching. Product labelling
audit/evaluation of the working of this policy by related to storage procedures and safety
an internal or external agency? precautions are clearly indicated at all the
installations handling the Value Added
The COSA/GSA is subject to review as may be
Products.
mutually agreed upon.
3. Is there any case filed by any stakeholder
1. What percentage of customer complaints/ against the Company regarding unfair
consumer cases are pending as on the trade practices, irresponsible advertising
end of financial year: and/or anti-competitive behaviour during
Customer complaints/consumer cases are the last five years and pending as on end
being dealt at Asset/Plant level. of financial year:
Out of total 99 complaints received from No
customers across ONGC work centres,
4. Did your Company carry out any consumer
97 complaints were resolved and two
survey/ consumer satisfaction trends?
complaints (2%) are pending as on
31.03.2021. The Company interacts on regular basis
with its B2B customers’ with respect to
2. Does the Company display product
product quality and pricing. This kind
information on the product label, over and
of interaction with our partners ensures
above what is mandated as per local laws?
customer satisfaction. Any concerns
For crude oil sale, Batch wise certificates
related to the product by any of our
are issued for Crude Oil, which includes
consumers are addressed immediately. In
various quality parameters including the
view of constant interaction and feedback
BS&W. Product labelling related to storage
through meetings, no need has been felt
procedures and safety precautions
to undertake separate surveys to measure
236 are clearly indicated at the Company’s
installations holding the crude. customer satisfaction.
 ANNUAL REPORT
2020-21

Business Responsibility Report

237

ONGC contributes 76.7% to India’s domestic production (including JV Share)

 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Independent Auditors’ Report on Standalone

Financial Statements
238 239

Independent Auditors’ Report on 240

Standalone Financial Statements
Standalone Financial Statements 258
 THE UNSTOPPABLE
ENERGY SOLDIERS

Independent Auditors’ Report

To the Members of Oil and Natural Gas Corporation Limited

Report on the Audit of the Standalone Financial together with the ethical requirements that are
Statements relevant to our audit of the Standalone Financial
Statements under the provisions of the Act and
1. Opinion
the Rules made thereunder, and we have fulfilled
We have audited the accompanying Standalone our other ethical responsibilities in accordance
Financial Statements of Oil and Natural Gas with these requirements and the Code of Ethics.
Corporation Limited (“the Company”), which We believe that the audit evidence we have
comprise the Balance Sheet as at March 31, obtained is sufficient and appropriate to provide a
2021, the Statement of Profit and Loss (including basis for our opinion on the Standalone Financial
Other Comprehensive Income), the Statement Statements.
of Changes in Equity and the Statement of Cash
3. Emphasis of Matter
Flows for the year then ended, and notes to the
Standalone Financial Statements, including a We draw attention to following Notes to the
summary of significant accounting policies and Standalone Financial Statements:-
other explanatory information (hereinafter referred
i. Note No. 53 which states that the Company’s
to as “the Standalone Financial Statements”).
Board does not have the requisite number
In our opinion and to the best of our information of Independent Directors and also does
and according to the explanations given to us, not have a woman Independent Director
the aforesaid Standalone Financial Statements from September 8, 2020, as required by the
give the information required by the Companies provisions of the Securities Exchange Board
Act, 2013 (“the Act”) in the manner so required of India (Listing Obligations and Disclosure
and give a true and fair view in conformity with Requirement) Regulations, 2015, Department
the Indian Accounting Standards specified under of Public Enterprises (DPE) Guidelines and
section 133 of the Act read with the Companies the provisions of the Act, so as to constitute
(Indian Accounting Standards) Rules, 2015, proper Board of the Directors and its sub-
as amended, (‘Ind AS”) and other accounting committees, which inter alia includes the Audit
principles generally accepted in India, of the state Committee. As a result, in the absence of valid
of affairs of the Company as at March 31, 2021, quorum, no Audit Committee meetings have
and its profit (including other comprehensive been convened after September 8, 2020, and
income), the changes in equity and its cash in such circumstances, as implied from the
flows for the year ended on that date. said Note, the mandatory functions of the
240 Audit Committee, such as review of quarterly
2. Basis for Opinion
results/annual financial statements, approval
We conducted our audit of the Standalone of related party transactions etc., have been
Financial Statements in accordance with the directly carried out by the Board of Directors
Standards on Auditing (SAs) specified under of the company. Accordingly, the enclosed
section 143(10) of the Act. Our responsibilities Standalone Financial Statements have been
under those Standards are further described in directly approved by the Board of Directors.
the Auditor’s Responsibilities for the Audit of the
ii. Note No. 48.1.1(d), wherein it is stated that
Standalone Financial Statements section of our
Directorate General of Hydrocarbons (DGH)
report. We are independent of the Company in
had raised a demand on all the JV partners
accordance with the Code of Ethics issued by
under the Production Sharing Contract with
the Institute of Chartered Accountants of India
 ANNUAL REPORT
2020-21
respect to Panna-Mukta and Mid and South iii. Note No. 48.1.1(b), with respect to demand
Tapti contract areas (PMT JV), being BG orders served on various work centres of the
Exploration and Production India Limited company by tax authorities under Service
(BGEPIL) and Reliance Industries Limited (RIL) Tax (ST) and Goods & Service Tax (GST)
(together “the Claimants”) and the Company demanding ST and GST on Royalty in respect
(all three together referred to as “Contractors”), of Crude Oil and Natural Gas. Based on the
towards differential GOI share of Profit legal opinion, the Company is contesting such
Petroleum and Royalty alleged to be payable demands and estimated amounts worked out
by contractors pursuant to Government’s towards ST and GST (including interest and
interpretation of the Final Partial Award of penalty upto March 31, 2021) of `39,604.84
Arbitral Tribunal (40% share of the Company million and `77,173.72 million respectively
amounting to USD 1624.05 million equivalent
(Total `1,16,778.56 million), which has been
to `119,351.43 million, including interest upto

Independent Auditors’ Report on Standalone

considered as contingent liability. As a
30th November, 2016). Subsequent to Tribunal
measure of abundant caution, the Company
Orders dated October 12, 2016, DGH vide
has deposited ST and GST along with interest
letters dated May 25, 2017, June 4, 2018
under protest amounting to `13,524.39 million
and January 14, 2019 had asked contractor
and `56,777.04 million respectively (Total
for re-casting of accounts of the PMT JV

Financial Statements
and for remitting the respective PI share of `70,301.43 million).
balance dues including interest till the date of iv. Note No. 30.4, which describes the
remittance. As the Company is not a party to managements’ assessment of the impact
the arbitration, the details of the proceedings of COVID-19 pandemic on the basis of
of arbitration and copy of the order of London internal and external sources of information
High Court are not available with the Company. on its business, operation and other related
The Company has responded that the English components. As stated in the said Note, the
High Court has delivered its final verdict management expects no significant impact of
on May 2, 2018 following which the Arbitral
COVID-19 on the affairs of the company on a
Tribunal re-considered some of its earlier
long term basis.
findings from the 2016 FPA (Revised Award);
The Government of India and JV Partners have Our opinion on the Standalone Financial
challenged parts of the Revised Award before Statements is not modified in respect of these
the English Court. On February 12, 2020, the matters.
English Court passed a verdict favouring the
4. Key Audit Matters
challenges made by BGEPIL and RIL and
also remitted the matter in the Revised Award Key audit matters are those matters that, in our
back to Arbitral Tribunal for reconsideration. professional judgment, were of most significance 241
In January 2021, the Tribunal issued a verdict in our audit of these Standalone Financial
favouring BGEPIL/RIL on the remitted matter, Statements of the current period. These matters
which has been challenged by the GOI before were addressed in the context of our audit of the
the English Court. Pending finalization of the Standalone Financial Statements as a whole, and
decision of the Arbitral Tribunal, the Company in forming our opinion thereon, and we do not
has indicated in its letters to DGH that the provide a separate opinion on these matters. We
final recasting of the accounts is premature have determined the matters described below to
and the issues raised by DGH may be kept be the key audit matters to be communicated in
in abeyance and therefore no provision for the our report:
same has been considered necessary and
has been disclosed as contingent liability.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Key Audit Matter How our audit addressed the matter

Modified Audit Procedures necessitated
pursuant to outbreak of COVID-19 pandemic:
Due to continuing spread of COVID-19 pandemic Due to the restrictions imposed, the audit
and the consequential restrictions imposed by processes were largely carried remotely by us
Central / various State Governments / Authorities from our respective places.
extended from time to time during the year
The Company has provided / shared with us the
2020-21 and thereafter, the audit could not be
necessary books of accounts, records, documents
carried by visiting the respective Assets/ Basins/
etc. through digital medium such as e-mails, file
Plants/ Units/ Offices / other Business areas/
sharing through Video Conferencing and remote
Corporate Office of the Company. Accordingly,
/ VPN access over secured network to SAP, Web-
this extraordinary situation due to Covid-19 has
Ice, BI platform, ICFR Portal, shared common
necessitated modification of our audit procedures
drives etc. To this extent, the audit processes were
so as to carry out the audit remotely through online
carried out on the basis of verification of such
access / receipt of digital documents. In view of
books of accounts, records, documents etc. made
this extraordinary situation due to Covid-19, we
available to us as above, which were relied upon
have identified such Modified Audit Procedures as
as audit evidence for conducting the audit and
a Key Audit Matter.
reporting for the current period.
Accordingly, we modified our audit procedures as
follows:
a. Conducted verification of necessary books of
accounts, records, documents etc. maintained
by the respective Assets/ Basins/ Plants/ Units/
Offices / other Business areas/Corporate Office
etc. of the company through digital medium
and remote electronic access as mentioned
above.
b. Carried out verification of scanned copies of the
documents, evidences, deeds, certificates and
the related records made available to us by the
company through aforesaid digital medium.
c. Making enquiries and gathering necessary
audit evidence through Video Conferencing,
dialogues and discussions over phone
calls, e-mails and similar communication
242 channels.
d. Resolution of our audit observations through
electronic and other telecommunication media
instead of a physical meetings and interaction
with the designated officials.
e. We have also relied upon and performed our
audit procedures in accordance with the
Advisories and Key considerations issued
by the Institute of Chartered Accountants of
India on the various Accounting and Auditing
aspects impacted by COVID-19.
 ANNUAL REPORT
2020-21

Key Audit Matter How our audit addressed the matter

Evaluation of adequacy of provision for Our audit procedures included the following:
impairment for tangible and intangible assets We evaluated the appropriateness of
(Refer Note 47 to the Standalone Financial management’s identification of the CGUs and
Statements) exploration and evaluation assets and tested
Management has assessed whether any provision the operating effectiveness of controls over
needs to be recognised on account of impairment the impairment assessment process, including
of tangible and intangible assets. indicators of impairment.
The Company reviews the carrying amount of We reviewed the reasonableness of the judgments
its tangible and intangible assets (Oil and Gas and decisions made by the management
Assets including Capital Work-in-Progress (CWIP) regarding assumptions (including the relevant
& Development Wells in Progress (DWIP), Other regulatory guidelines) for Oil and Gas prices in

Independent Auditors’ Report on Standalone

Property, Plant & Equipment (including Capital future to identify whether there are indicators of
Works-in-Progress, Right of Use Assets) for the possible management bias and accordingly relied
“Cash Generating Unit” (CGU) determined at the upon the management’s assumptions for Oil and
end of each reporting period to assess whether Gas prices in future.
there is any indication that those assets have
We reviewed the appropriateness of discount rates

Financial Statements
suffered any impairment loss.
used in the estimation.
Oil and Gas price assumptions have a significant
We relied on the technical assessment of the
impact on CGU impairment assessments and
Management with regard to the Reserves and the
are inherently uncertain. Furthermore, oil and gas
prices are subject to increased uncertainty, given Production profile of Oil and Gas, as shown to us
regulatory guidelines including notified gas prices, by the management.
climate change and the global energy transition. We performed testing of the mathematical
The management’s assumptions for prices of oil accuracy of the cash flow models and checked
and gas in future are highly judgemental and may the appropriateness of the related disclosures. We
not be reflective of above factors, leading to a risk evaluated management’s assessment and related
of material misstatement. calculations of impairment including comparison of
the recoverable amount with the carrying amounts
Given the long timeframes involved, certain
of respective CGUs in the books of accounts.
recoverable amounts of assets are sensitive to the
discount rate applied. Since the determination of We perused the future plans related to
appropriate discount rate is judgemental, there is exploration activities. Further, we have relied upon
a risk that discount rates may not reflect the return management’s assessment that the Mining Lease
required by the market and the risks inherent in the (ML)/ Petroleum Mining Lease (PML) shall be re-
cash flows being discounted, which may lead to a granted, wherever expired/ is expiring in near 243
material misstatement. future.
A key input to impairment assessments and
valuations is the production forecast, in turn closely
related to the Company’s reserves estimates,
production profile and field development
assumptions with reference to Oil and Gas.
The determination of recoverable amount, being
the higher of fair value less costs to sell and
value- in use is based on the factors as discussed
above, necessitating judgement on the part of
management.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Key Audit Matter How our audit addressed the matter

In case of exploration and evaluation assets,

based on management’s judgement, assessment
for impairment is carried out when further
exploration activities are not planned in near future
or when sufficient data indicate that although a
development is likely to proceed, the carrying
amount of the exploration asset is unlikely to be
recovered in full from successful development
or by sale. Based on the above factors, we have
considered the measurement of Impairment as
Key Audit Matter.

Estimation of Decommissioning liability

(Refer Note 24 to the Standalone Financial
Statements)
The Company has an obligation to restore and Our audit procedures included the following:
rehabilitate the Asset/fields operated upon
Evaluated the approach adopted by the
by the Company at the end of their use. This
management in determining the expected costs of
decommissioning liability is recorded based
decommissioning.
on estimates of the costs required to fulfill this
obligation. Identified the cost assumptions used that have
the most significant impact on the provisions and
The provision is based upon current cost
tested the appropriateness of these assumptions.
estimates and has been determined on a
discounted basis with reference to current legal Reviewed the appropriateness of discount and
requirements and technology. At each reporting inflation rates used in the estimation.
date the decommissioning liability is reviewed and Verified the unwinding of interest as well as
re-measured in line with changes in observable understanding if any restoration was undertaken
assumptions, timing and the latest estimates of during the year.
the costs to be incurred at reporting date.
We have relied upon the technical assessment
We have considered the measurement of with respect to the Production Profile as estimated
decommissioning costs as Key Audit Matter as by the management based on which the Terminal
244 it requires significant management judgment, year of the Asset /fields for decommissioning has
including accounting calculations and estimates been estimated.
that involves high estimation uncertainty.
We have relied upon management’s assessment
that the Mining Lease (ML) / Petroleum Mining
Lease (PML) would be regranted, till the terminal
year of the field as estimated by the management.
Relied on the judgments of the internal/ external
experts for the purpose of technical /commercial
evaluation.
Assessed the appropriateness of the disclosures
made in the financial statements.
 ANNUAL REPORT
2020-21

Key Audit Matter How our audit addressed the matter

Litigations and Claims

(Refer Note 48 to the Standalone Financial
Statements)
Litigation and claims are pending with multiple tax Our audit procedures included the following:
and regulatory authorities and there are claims
Understood Management’s internal instructions,
from vendors/suppliers and employees which have
process and control for determining and estimating
not been acknowledged as debt by the company
the tax litigations, other litigations and claims and
(including Joint Operations).
its appropriate accounting and/or disclosure.
In the normal course of business, financial
Tested key controls surrounding such litigations.
exposures may arise from pending legal/regulatory

Independent Auditors’ Report on Standalone

proceedings and from above referred claims not Discussed pending matters with the Company’s
acknowledged as debt by the company. Whether personnel with respect to status of cases of
a claim needs to be recognized as liability or litigation and claims.
disclosed as a contingent liability in the Standalone Assessed management’s conclusions through
Financial Statements or is considered as remote, is

Financial Statements
understanding precedents set in similar cases,
dependent on a number of significant assumptions including placing reliance upon the expert
and judgments made by the management. The opinions, wherever obtained by the management.
amounts involved are potentially significant and
determining the amount, if any, to be recognized or We have assessed the adequacy and
disclosed in the financial statements, is inherently appropriateness of presentation and disclosure
subjective. of the Contingent liabilities in the Standalone
Financial Statements.
We have considered Litigations and claims as Key
Audit Matter because the estimates on which these
amounts are based involve a significant degree
of management judgment, including accounting
estimates that involves high estimation uncertainty.

245

A geophysical field party prepares for a day of survey activities

in Madhya Pradesh
 THE UNSTOPPABLE
ENERGY SOLDIERS
5. Other Matters including other comprehensive Income for
i. We have placed reliance on technical/ the year ended March 31, 2021 amounting
commercial evaluation by the management in to `130.89 million and `177.62 million
respect of categorization of wells as exploratory, respectively, Our opinion is based solely on
development, producing and dry well, management certified accounts.
allocation of cost incurred on them, production iii. We audited the restatement/retrospective
profile, proved (developed and undeveloped)/ adjustments, as disclosed in Note No. 52 to the
probable hydrocarbon reserves, and depletion Standalone Financial Statements, which have
thereof on Oil and Gas Assets, impairment, been made to the comparative Standalone
liability for decommissioning costs, liability Financial Statements presented for the
for NELP and nominated blocks for under years prior to year ended March 31, 2021, in
performance against agreed Minimum Work accordance with the requirement of applicable
Programme. Ind AS. In our opinion, such adjustments are
ii. As mentioned in Note No. 46.1.3, the appropriate and have been properly applied.
Standalone Financial Statements include iv. The Standalone Financial Statements of the
the Company’s share in the total value of Company for the year ended March 31, 2020
assets, liabilities, expenditure and income of were audited by joint auditors of the Company
167 blocks under New Exploration Licensing five of which are the predecessor audit firms,
Policy (NELP)/ Hydrocarbon Exploration and and have expressed an unmodified opinion
Licensing Policy (HELP) / Discovered Small dated June 30, 2020 on such standalone
Fields (DSFs)/ Open Acreage Licensing Policy financial statements.
(OALPs) and Joint Operations (JO) accounts
for exploration and production out of which: Our opinion on the Standalone Financial
Statements is not modified in respect of above
a. 8 NELPs/ HELPs/ JOs accounts have been matters.
certified by other Chartered Accountants.
6. Information Other than the Standalone
In respect of these 8 NELPs/ HELPs/
Financial Statements and Auditor’s Report
JOs, Standalone Financial Statements
Thereon
include proportionate share in assets and
liabilities as on March 31, 2021 amounting The Company’s Board of Directors is responsible
to `86,484.06 million and `45,497.33 for the preparation of the other information. The
million respectively and revenue and profit other information comprises the information
including other comprehensive Income for included in the Board’s Report including
the year ended March 31, 2021 amounting Annexures to Board’s Report, Management
to `60,629.92 million and `19,749.54 million Discussion and Analysis, Business Responsibility
Report and Report on Corporate Governance
respectively, Our opinion is based solely
246 but does not include the Standalone Financial
on the certificate of the other Chartered
Statements and our auditors’ report thereon.
Accountants.
The above-referred information is expected to be
b. 10 NELPs / HELPs/ JOs have been certified made available to us after the date of this audit
by the management in respect of NELPs / report.
HELPs/ JOs operated by other operators. Our opinion on the Standalone Financial
In respect of these 10 NELPs / HELPs/ Statements does not cover the other information
JOs, Standalone Financial Statements and we do not express any form of assurance
include proportionate share in assets and conclusion thereon.
liabilities as on March 31, 2021 amounting
In connection with our audit of the Standalone
to `8,705.76 million and `8,047.15 million
Financial Statements, our responsibility is to
respectively and revenue and profit
read the other information identified above when
 ANNUAL REPORT
2020-21
it becomes available and, in doing so, consider going concern, disclosing, as applicable, matters
whether the other information is materially related to going concern and using the going
inconsistent with the Standalone Financial concern basis of accounting unless management
Statements or our knowledge obtained in the audit either intends to liquidate the Company or to
or otherwise appears to be materially misstated. cease operations, or has no realistic alternative
If, based on the work we have performed, we but to do so.
conclude that there is a material misstatement of
Those Board of Directors are also responsible
this other information, we are required to report
for overseeing the Company’s financial reporting
that fact.
process.
When we read the other information, if we conclude
8. Auditor’s Responsibilities for the Audit of
that there is a material misstatement therein, we
Standalone Financial Statements
are required to communicate the matter to those
charged with governance and take appropriate Our objectives are to obtain reasonable

Independent Auditors’ Report on Standalone

actions necessitated by the circumstances and assurance about whether the Standalone
the applicable laws and regulations. Financial Statements as a whole are free from
material misstatement, whether due to fraud
7. Responsibilities of Management and Those
or error, and to issue an auditors’ report that
Charged with Governance for the Standalone
includes our opinion. Reasonable assurance is a
Financial Statements

Financial Statements
high level of assurance, but is not a guarantee
The Company’s Board of Directors is responsible that an audit conducted in accordance with SAs
for the matters stated in section 134(5) of the Act will always detect a material misstatement when
with respect to the preparation and presentation it exists. Misstatements can arise from fraud or
of these Standalone Financial Statements that error and are considered material if, individually
give a true and fair view of the financial position, or in the aggregate, they could reasonably be
financial performance, changes in equity and expected to influence the economic decisions
cash flows of the Company in accordance with of users taken on the basis of these Standalone
the accounting principles generally accepted in Financial Statements.
India, including the Indian Accounting Standards
As part of an audit in accordance with SAs, we
(Ind AS) specified under section 133 of the Act.
exercise professional judgment and maintain
This responsibility also includes maintenance
professional skepticism throughout the audit. We
of adequate accounting records in accordance
also:
with the provisions of the Act for safeguarding of
the assets of the Company and for preventing • Identify and assess the risks of material
and detecting frauds and other irregularities; misstatement of the Standalone Financial
selection and application of appropriate Statements, whether due to fraud or error,
accounting policies; making judgments and design and perform audit procedures
estimates that are reasonable and prudent; and responsive to those risks, and obtain audit 247
design, implementation and maintenance of evidence that is sufficient and appropriate to
adequate internal financial controls, that were provide a basis for our opinion. The risk of not
operating effectively for ensuring accuracy detecting a material misstatement resulting
and completeness of the accounting records, from fraud is higher than for one resulting from
relevant to the preparation and presentation of error, as fraud may involve collusion, forgery,
the Standalone Financial Statements that give intentional omissions, misrepresentations, or
a true and fair view and are free from material the override of internal control.
misstatement, whether due to fraud or error. • Obtain an understanding of internal control
In preparing the Standalone Financial Statements, relevant to the audit in order to design audit
the Board of Directors is responsible for procedures that are appropriate in the
assessing the Company’s ability to continue as a circumstances. Under section 143(3)(i) of the
Act, we are also responsible for expressing
 THE UNSTOPPABLE
ENERGY SOLDIERS
our opinion on whether the Company has We also provide those charged with governance
adequate internal financial controls with with a statement that we have complied
reference to financial statements in place and with relevant ethical requirements regarding
the operating effectiveness of such controls. independence, and to communicate with
• Evaluate the appropriateness of accounting them all relationships and other matters that
policies used and the reasonableness of may reasonably be thought to bear on our
accounting estimates and related disclosures independence, and where applicable, related
made by management. safeguards.

• Conclude on the appropriateness of From the matters communicated with those

management’s use of the going concern basis charged with governance, we determine those
of accounting and, based on the audit evidence matters that were of most significance in the
obtained, whether a material uncertainty exists audit of the Standalone Financial Statements
related to events or conditions that may cast of the current period and are therefore the key
significant doubt on the Company’s ability to audit matters. We describe these matters in our
continue as a going concern. If we conclude auditors’ report unless law or regulation precludes
that a material uncertainty exists, we are public disclosure about the matter or when, in
required to draw attention in our auditors’ report extremely rare circumstances, we determine
to the related disclosures in the Standalone that a matter should not be communicated in
Financial Statements or, if such disclosures our report because the adverse consequences
are inadequate, to modify our opinion. Our of doing so would reasonably be expected to
conclusions are based on the audit evidence outweigh the public interest benefits of such
obtained up to the date of our auditors’ report. communication.
However, future events or conditions may 9. Report on Other Legal and Regulatory
cause the Company to cease to continue as a Requirements
going concern.
1. As required by the Companies (Auditor’s
• Evaluate the overall presentation, structure Report) Order, 2016 (“the Order”), issued
and content of the Standalone Financial by the Central Government of India in terms
Statements, including the disclosures, and of sub-section (11) of section 143 of the Act,
whether the Standalone Financial Statements we give in “Annexure-1” a statement on the
represent the underlying transactions matters specified in paragraphs 3 and 4 of the
and events in a manner that achieves fair Order, to the extent applicable.
presentation.
2. Based on verification of books of accounts of
Materiality is the magnitude of misstatements the Company and according to information
in the Standalone Financial Statements that, and explanations given to us, we give below
individually or in aggregate, makes it probable a report on the Directions and Sub-directions
248 that the economic decisions of a reasonably issued by the Comptroller and Auditor General
knowledgeable user of the Standalone Financial of India in terms of Section 143(5) of the Act:
Statements may be influenced. We consider
quantitative materiality and qualitative factors
in (i) planning the scope of our audit work and
in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements
in the Standalone Financial Statements.
We communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit and
significant audit findings, including any significant
deficiencies in internal control that we identify
during our audit.
 ANNUAL REPORT
2020-21

Directions/ Sub-directions u/s 143(5) of the Act Auditor’s reply on the action taken on the
for year 2020-21 directions
Directions

1) Whether the Company has system in place to Yes, the Company has system in place to process
process all the accounting transactions through all the accounting transactions through IT system,
IT system? If yes, the implication of processing namely SAP. Based on the audit procedures carried
of accounting transaction outside IT System out and as per the information and explanations
on the integrity of the accounts along with the given to us, no accounting transactions have
financial implications, if any, may be stated. been processed / carried outside the IT system.
Accordingly, there are no implications on the
integrity of the accounts.

Independent Auditors’ Report on Standalone

2) Whether there is any restructuring of an Loan/Debt where Company is borrower:
existing loan or cases of waiver/ write-off of Based on the audit procedures carried out and
debts/ loans/ interest etc. made by a lender to as per the information and explanations given to
the company due to the Company’s inability us, there were no cases of restructuring or waivers
to repay the loan? If yes, the financial impact / write-off of debts/ loans/ interest etc. by any
may be stated. Whether such cases are lender, due to the company’s inability to repay the

Financial Statements
properly accounted for? (In case, lender is a loan during the FY 2020-21.
Government Company, then this direction is Loan/Debt where Company is lender:
also applicable for statutory auditor of lender Based on the audit procedures carried out and as
Company) per the information and explanations given to us,
there were no cases of restructuring or waivers /
write-off of debts/ loans/ interest etc. during the
FY 2020-21 with regard to amounts lent by the
company to the other parties.
3) Whether funds (Grant/ subsidy etc.) received/ Based on the audit procedures carried out and as
receivable for specific schemes from Central/ per the information and explanations given to us,
State agencies were properly accounted for/ the funds (Grant/ subsidy) received/ receivable
utilized as per its term and conditions? List the for specific schemes from Central/ State agencies
cases of deviation. were properly accounted for/ utilized as per its
term and conditions.
Sub-Directions

1) With regards to production reporting by The production reporting by the Company at Note
Company, please ensure compliance to No. 49 to the Financial Statements is excluding
disclosure requirement as per para 56 of BS&W and in compliance with the disclosure 249
Guidance Note 1956 on accounting for Oil requirement as per Para 56 of Guidance Note on
and Gas Producing Activities with reference accounting for Oil and Gas Producing Activities
to P&NG Rules, 1959 for exclusion of BS&W with reference to P&NG Rules, 1959.
quantity. The quantity of accumulated depletion Based on the audit procedure performed and as
may also be reviewed and reported suitably. per the information and explanation given to us
The accounting of ‘Pipeline condensate’ and the production considered for reserve estimation
‘off-gas’ quantity under crude production may and depletion of ONGC Offshore was reviewed
need revision to avoid double accounting and it was observed that the pipeline condensate
as this already forms part of natural gas and Gas liberated in the CSU (CSU Off Gas) have
production quantity measured and reported at not been considered for depletion and reserve
offshore wellhead. estimation. Refer Note No. 36.1 to the Financial
Statements.
 THE UNSTOPPABLE
ENERGY SOLDIERS

2) It may be ensured that impairment test of AsperrequirementofIndAS36on‘Impairment

tangible and intangible assets is done on the of Assets’, the estimates of future cash ows for
basis realizable value rather than on notied measuring value in use shall be based on the cash
gas prices, as it was generally observed that ow projections on reasonable and supportable
gas prices actually received were lower than assumptions that represent management’s best
the notied gas prices. estimate of the range of economic conditions
that will exist over the remaining useful life of the
asset. The above methodology has also been
prescribedintheGuidanceNoteon‘OilandGas
Producing Activities’ (Ind AS).
On the basis of information and explanation
provided to us, impairment testing of tangible and
intangible assets relating to gas bearing elds/
assets is carried out on the basis of the prices
estimated by the management. Such prices are
estimated based on the method prescribed in the
New Domestic Natural Gas Pricing Guidelines,
2014 issued by MoP&NG. For difcult areas
prices are estimated based on the formula
prescribed in the Notication dated 21.03.2016
issued by MoP&NG. We have been informed that
realization in the earlier years have broadly been
in line with the management’s estimated price for
the purposes of computing the impairment as
laid down in Ind AS 36 and the same has been
reviewed by us on test basis. The management
has represented that the lower realization during
the Financial Year 2020-21 as compared to the
management estimates is mainly on account of
the impact of Covid 19 apart from certain volatility
in the global oil & gas market during that period.
Further, the management represented to us
that the gas prices considered for testing the
impairment of tangible and intangible assets in
accordance with Ind AS 36 are based on the most
reliable information available taking a long-term
view of the range of economic conditions over the
250 remaining useful life of the asset.
The management has further represented to us
that this method has been consistently followed
by the Company.
Based on the above we are of the view that the
Company has complied with the requirements of
Ind AS 36 and the Guidance Note while making
impairment assessment by taking long-term view
of the range of economic conditions over the
remaining useful life of the assets.
 ANNUAL REPORT
2020-21
3. As required by Section 143(3) of the Act, we statements of the Company and the operating
report that: effectiveness of such controls, refer to our
separate report in “Annexure 2”;
a. We have sought and obtained all the
information and explanations which to the best g. As per Notication number G.S.R. 463 (E)
of our knowledge and belief were necessary dated 5th June, 2015 issued by Ministry of
for the purposes of our audit; Corporate Affairs, section 197 of the Act
regarding remuneration to director is not
b. In our opinion proper books of account
applicable to the Company, since it is a
as required by law have been kept by the
Government Company; and
Company so far as it appears from our
examination of those books; h. With respect to the other matters to be
included in the Auditors’ Report in accordance
c. The Balance Sheet, the Statement of Prot
with Rule 11 of the Companies (Audit and
and Loss including Other Comprehensive
Auditors) Rules, 2014, in our opinion and to

Independent Auditors’ Report on Standalone

Income, the Statement of Changes in Equity
the best of our information and according to
and Cash Flows dealt with by this Report are
the explanations given to us:
in agreement with the books of account;
i. the Company has disclosed the impact of
d. In our opinion, the aforesaid Standalone
pending litigations on its nancial position in its
Financial Statements comply with the Ind
Standalone Financial Statements – Refer Note

Financial Statements
AS specied under Section 133 of the Act
48.1.1 to the Standalone Financial Statements;
read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended; ii. the Company did not have any long-term
contracts including derivative contracts for
e. As per Notication number G.S.R. 463(E)
which there were any material foreseeable
dated 5th June, 2015 issued by Ministry of
losses- Refer Note 55 to the Standalone
Corporate Affairs, section 164(2) of the Act
Financial Statements;
regarding the disqualications of Directors is
not applicable to the Company, since it is a iii. there has been no delay in transferring
Government Company; amounts, required to be transferred, to the
Investor Education and Protection Fund by the
f. With respect to the adequacy of the internal
Company.
nancial controls with reference to nancial

For G M Kapadia & Co For R Gopal & Associates For SARC & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 093209) Partner (M. No. 084884) 251
UDIN: 21048243AAAADE3969 UDIN: 21093209AAAAAX4657 UDIN: 21084884AAAAAE1417
Place: Mumbai Place: New Delhi Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No. 002785S Firm Reg. No.000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
UDIN: 21077076AAAAAF1316 UDIN: 21041883AAAAAE1463 UDIN: 21047684AAAAAF5033
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 THE UNSTOPPABLE
ENERGY SOLDIERS

Annexure - 1 to the Independent Auditors’ Report

(Referred to in paragraph 9(1) under ‘Report on Other Legal and Regulatory
Requirements’ section of our report of even date)

i. of physically verified assets with the book

records is in progress. Discrepancies noticed
a. The Company has generally maintained
on the physical verification and consequential
proper records showing full particulars,
adjustments are carried out on completion of
including quantitative details and situation
reconciliation. According to information and
of fixed assets (Property, Plant & Equipment
explanations given by the management and in
(PPE)).
our opinion, the same are not material.
b. As per the information and explanations given
c. On the basis of the information to the extent
to us and on the basis of our examination of
compiled by the Company pending the
the records of the Company, the fixed assets
reconciliation of the available records with the
(PPE) having substantial value, other than
books of account and also considering the
those which are underground/ submerged/
voluminous nature and various locations, we
under joint operations have been physically
report that the title/lease deeds of immovable
verified by the management in a phased
properties are held in the name of Company
manner to cover all items over a period of
except for the following where the title/lease
three years, which in our opinion is reasonable,
deeds are not available with the Company:
having regard to the size of Company and
nature of its business. The reconciliation
(` in million)

Nature Number of Assets Gross Block Net Block

Lease hold land 13 572.54 362.69
Free hold land 11 1,331.30 1,331.30
Building 6 279.63 48.29
Total 30 2,183.47 1,742.28

ii. According to the information and explanations iv. In our opinion and according to the information
given to us, the inventory (excluding inventory and explanations given to us, the Company
lying with third parties, inventory under joint has not advanced loans to directors / to a
operations and material in transit) has been Company in which the Director is interested to
252 physically verified by the management in a which provisions of section 185 of the Act apply.
phased manner at reasonable intervals to cover The provisions of section 186 of the Act, in our
all items over a period of three years, which in opinion, are not applicable to the Company.
our opinion is reasonable, having regard to the
v. In our opinion and according to information and
size of Company and nature of its business.
explanations given to us, the Company has not
Such verification did not reveal any material
accepted any deposits from the public and hence
discrepancies.
provisions of Sections 73 to 76 and other relevant
iii. The Company has not granted loans, secured provision of the Act and Companies (Acceptance
or unsecured to any companies, firms, limited of Deposits) Rules, 2014 are not applicable.
liability partnerships or other parties covered in the
vi. We have broadly reviewed the cost records
register maintained under section 189 of the Act.
maintained by the Company pursuant to the
 ANNUAL REPORT
2020-21
Companies (Cost Records and Audit) Rules, statutory dues have generally been regularly
2014, as amended and prescribed by the Central deposited with the appropriate authorities.
Government under sub section (1) of section 148 According to the information and explanations
of the Act and we are of the opinion that prima facie given to us, no undisputed amounts payable in
the prescribed accounts and records are being respect of the aforesaid dues were outstanding
made and updated on regular basis. However, as at March 31, 2021 for a period more than six
we have not made a detailed examination of the months from the date of becoming payable.
cost records with the view to determine whether
b. According to the information and explanations
they are accurate or complete.
given to us, there were no dues in respect of
vii. a. According to records of the Company, Income Tax, Duty of Excise, Duty of Customs,
undisputed statutory dues including Provident Sales Tax, Service Tax, Value Added Tax and
Fund, Income Tax, Sales Tax, Service Tax, Goods and Service Tax which have not been
Duty of Customs, Duty of Excise, Value Added deposited on account of any dispute except

Independent Auditors’ Report on Standalone

Tax, Goods and Service Tax, Cess and other the following:

(` in million)
Period to
which the

Financial Statements
Gross
amount Amount paid Amount
Name of Statute Forum where Dispute is pending Amount
relates under protest Unpaid
Involved
(Financial
Year)
Commissioner 2018-19 2.37 - 2.37
Custom, Excise and Service Tax 2005-06,
37.67 21.12 16.55
Appellate Tribunal 2018-19
Central 2012-13 to
Hon. High Court 6,577.04 - 6,577.04
Excise Act, 2014-15
1944 2001-02,
Hon. Supreme Court 2006-07 to - 517.54
517.54
2008-09
Total (A) 7,134.62 21.12 7,113.50
Commissioner 1987-88 331.32 - 331.32
Custom, Excise and Service 2007-08,
7.00 1.00 6.00
The Customs Tax Appellate Tribunal 2020-21
Act, 1962 2012-13,
Hon. High Court 64.17 - 64.17
2015-16
253
Total (B) 402.49 1.00 401.49
2002-03,
2007-08,
Commissioner/ (Appeals) and
2009-10, 1,66,790.69 1,62,873.71 3,916.98
Additional Commissioner/ ITO
2012-13 to
2015-16
Income Tax
2007-08,
Act, 1961
Income Tax Appellate Tribunal 2009-10 to 1,20,391.65 1,20,391.65 -
2011-12
1990-91,
Hon. High Court 420.83 411.92 8.91
2000-01
Total (C) 2,87,603.17 2,83,677.28 3,925.89
 THE UNSTOPPABLE
ENERGY SOLDIERS

Period to
which the
Gross
amount Amount paid Amount
Name of Statute Forum where Dispute is pending Amount
relates under protest Unpaid
Involved
(Financial
Year)
Goods and Services Tax
2017-18 2,090.88 1,868.83 222.05
Appellate Tribunal
Goods and
2017-18 to
Services Tax Hon. High Court 77,824.88 54,908.21 22,916.67
2020-21
Total (D) 79,915.76 56,777.04 23,138.72
2000-01,
2001-02,
2005-06 to
Commissioner/ Joint Commissioner/
2007-08,
Commissioner -Appeals/ Joint 2,022.10 21.25 2,000.85
2009-10 to
Commissioner- Appeals
2012-13,
2014-15 to
2016-17
1996-97,
1998-99,
Central Sales 1999-2000,
Appellate Tribunal/ First Appellate
Tax Act, 1956 and Authority 2001-02 to 15,598.64 67.61 15,531.03
Respective States’ 2006-07,
Sales Tax Acts 2009-10 to
2015-16
1978-79,
1992-93 to
Hon. High Court 1994-95, 43.17 23.61 19.56
2006-07,
2012-13
2002-01 to
2008-09,
Hon. Supreme Court 10,990.75 623.96 10,366.79
2012-13,
2016-17
Total (E) 28,654.66 736.43 27,918.23
254 Commissioner/ (Appeals), Joint 2006-07,
Comm., Additional Comm. of 2007-08,
13,062.97 0.49 13,062.48
Custom, Excise and Service Tax, 2011-12 to
Director General 2016-17
2003-04,
Finance Act, Custom, Excise and Service Tax 2005-06 to
1994 (Service Appellate Tribunal/ First Appellate 2012-13, 42,165.28 13,575.52 28,589.76
Tax) Authority 2014-15 to
2017-18
2005-06;
Hon. High Court 2012-13, 199.96 2.56 197.40
2015-16
Total (F) 55,428.21 13,578.57 41,849.64
Grand Total (A+B+C+D+E+F) 4,59,138.91 3,54,791.44 1,04,347.47
 ANNUAL REPORT
2020-21
viii. In our opinion and according to the information parties are in compliance with section 188 of
and explanations given to us, the Company has the Act, where applicable. As stated in Note
not defaulted in repayment of loans or borrowings No. 53 of the Standalone Financial Statements
dues to Banks and Financial Institutions, or dues read together with para 3(i) of our Independent
to Debenture (Bond) Holders. The Company has Auditors’ Report, as no meeting of the Audit
not borrowed any amount from Government. Committee has been convened after September
8, 2020, the mandatory function of review/
ix. In our opinion and according to the information
approval of related party transactions as required
and explanations given to us, the term loans taken
under section 177 of the Act to be performed by
by the Company have been generally applied
the Audit Committee, has been directly carried
for the purpose for which they were raised. The
out by the Board of Directors of the company.
Company has not raised any money by way of
The Company has disclosed the details of the
initial public offer or further public offer.
related party transactions in the Notes to the
x. According to the information and explanations Standalone Financial Statements, as required by

Independent Auditors’ Report on Standalone

given to us, no material fraud on the Company by the applicable Indian Accounting Standards.
its officers or employees or by the Company has
xiv. According to the information and explanations
been noticed or reported during the year.
given to us and on an overall examination of the
xi. As per notification number G.S.R. 463 (E) dated Balance Sheet, the Company has not made any
5th June, 2015 issued by Ministry of Corporate preferential allotment or private placement of

Financial Statements
Affairs, section 197 of the Act as regards the shares or fully or partly convertible debentures
managerial remuneration is not applicable to the during the year.
Company, since it is a Government Company.
xv. According to the information and explanations
xii. In our opinion, the Company is not a Nidhi given by the management, the Company has not
Company. Therefore, the provisions of clause entered into any non-cash transactions specified
3(xii) of the Order are not applicable to the under section 192 of the Act with directors or
Company. persons connected with him.
xiii. According to the information and explanations xvi. In our opinion, the Company is not required to
given by the management and based on our register under section 45-IA of the Reserve Bank
examination, the transactions with the related of India Act, 1934.

For G M Kapadia & Co For R Gopal & Associates For SARC & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 093209) Partner (M. No. 084884)
UDIN: 21048243AAAADE3969 UDIN: 21093209AAAAAX4657 UDIN: 21084884AAAAAE1417
255
Place: Mumbai Place: New Delhi Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No. 002785S Firm Reg. No.000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
UDIN: 21077076AAAAAF1316 UDIN: 21041883AAAAAE1463 UDIN: 21047684AAAAAF5033
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 THE UNSTOPPABLE
ENERGY SOLDIERS

Annexure - 2 to Independent Auditors’ Report

(Referred to in paragraph 9 (3) (f) under ‘Report on Other Legal and Regulatory
Requirements’ section of our report of even date)
Report on the Internal Financial Controls with reference to Standalone Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the Act

To the Members of Oil and Natural Gas Corporation with reference to Standalone Financial Statements.
Limited Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and
We have audited the internal financial controls with
perform the audit to obtain reasonable assurance
reference to Standalone Financial Statements of Oil
about whether adequate Internal Financial Controls
and Natural Gas Corporation Limited (“the Company”)
with reference to Standalone Financial Statements
as of March 31, 2021 in conjunction with our audit of
was established and maintained and if such controls
the Standalone Financial Statements of the Company
operated effectively in all material respects.
for the year ended on that date.
Our audit involves performing procedures to
Management’s Responsibility for Internal Financial
obtain audit evidence about the adequacy of
Controls
the internal financial controls with reference to
The Company’s management is responsible for Standalone Financial Statements and their operating
establishing and maintaining Internal Financial effectiveness. Our audit of internal financial controls
Controls based on the internal control over financial with reference to Standalone Financial Statements
reporting criteria established by the Company included obtaining an understanding of internal
considering the essential components of internal financial controls with reference to Standalone
control stated in the Guidance Note on Audit of Internal Financial Statements, assessing the risk that a
Financial Controls over Financial Reporting issued by material weakness exists, and testing and evaluating
the Institute of Chartered Accountants of India. These the design and operating effectiveness of internal
responsibilities include the design, implementation control based on the assessed risk. The procedures
and maintenance of adequate internal financial selected depend on the auditor’s judgment, including
controls that were operating effectively for ensuring the assessment of the risks of material misstatement
the orderly and efficient conduct of its business, of the Standalone Financial Statements, whether due
including adherence to the Company’s policies, to fraud or error.
the safeguarding of its assets, the prevention and
We believe that the audit evidence we have obtained
detection of frauds and errors, the accuracy and
is sufficient and appropriate to provide a basis for
completeness of the accounting records, and the
our audit opinion on the Company’s internal financial
timely preparation of reliable financial information, as
controls with reference to Standalone Financial
256 required under the Act.
Statements.
Auditors’ Responsibility
Meaning of Internal Financial Controls with
Our responsibility is to express an opinion on the reference to Standalone Financial Statements
Company’s internal financial controls with reference
A Company’s internal financial control with reference
to Standalone Financial Statements based on our
to Standalone Financial Statements is a process
audit. We conducted our audit in accordance with the
designed to provide reasonable assurance regarding
Guidance Note on Audit of Internal Financial Controls
the reliability of financial reporting and the preparation
over Financial Reporting (the “Guidance Note”)
of Standalone Financial Statements for external
issued by the Institute of Chartered Accountants of
purposes in accordance with generally accepted
India and the Standards on Auditing as specified
accounting principles. A Company’s internal financial
under section 143(10) of the Act, to the extent
control with reference to Standalone Financial
applicable to an audit of Internal Financial Controls
 ANNUAL REPORT
2020-21
Statements includes those policies and procedures conditions, or that the degree of compliance with the
that (1) pertain to the maintenance of records that, policies or procedures may deteriorate.
in reasonable detail, accurately and fairly reflect the
Opinion
transactions and dispositions of the assets of the
Company; (2) provide reasonable assurance that In our opinion, the Company has, in all material
transactions are recorded as necessary to permit respects, an adequate Internal Financial Controls
preparation of Standalone Financial Statements in with reference to Standalone Financial Statements
accordance with generally accepted accounting and such Internal Financial Controls with reference
principles, and that receipts and expenditures of to Standalone Financial Statements were operating
the Company are being made only in accordance effectively as at March 31, 2021, based on the criteria
with authorizations of management and directors for Internal Financial Control over financial reporting
of the Company; and (3) provide reasonable established by the Company considering the
assurance regarding prevention or timely detection essential components of internal control stated in the
of unauthorised acquisition, use, or disposition of the Guidance Note on Audit of Internal Financial Controls

Independent Auditors’ Report on Standalone

Company’s assets that could have a material effect Over Financial Reporting issued by the Institute of
on the Standalone Financial Statements. Chartered Accountants of India.
Inherent Limitations of Internal Financial Controls Other Matters
with reference to financial statements As stated in Note No. 53 of the Standalone Financial

Financial Statements
Because of the inherent limitations of internal financial Statements read together with para 3(i) of our
controls with reference to Standalone Financial Independent Auditors’ Report, as no meeting of the
Statements, including the possibility of collusion or Audit Committee was held after September 8, 2020,
improper management, override of controls, material and hence, the mandatory functions of the Audit
misstatements due to error or fraud may occur and Committee, such as review/approval/ oversight/
not be detected. Also, projections of any evaluation evaluation of the company’s external financial
of the internal financial controls with reference to reporting, related party transactions, Internal financial
Standalone Financial Statements to future periods controls over financial reporting, risk management
are subject to the risk that the internal financial control system, internal audit function, whistle blower and
with reference to Standalone Financial Statements vigil mechanism, end utilisation of funds etc., have
may become inadequate because of changes in been directly carried out by the Board of Directors of
the company.

For G M Kapadia & Co For R Gopal & Associates For SARC & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 093209) Partner (M. No. 084884) 257
UDIN: 21048243AAAADE3969 UDIN: 21093209AAAAAX4657 UDIN: 21084884AAAAAE1417
Place: Mumbai Place: New Delhi Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No. 002785S Firm Reg. No.000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
UDIN: 21077076AAAAAF1316 UDIN: 21041883AAAAAE1463 UDIN: 21047684AAAAAF5033
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 THE UNSTOPPABLE
ENERGY SOLDIERS
Standalone Balance Sheet as at March 31, 2021 (` in million)

Particulars Note As at March As at March As at March

No. 31, 2021 31, 2020* 31, 2019*
I. ASSETS
(1) Non-current assets
(a) Property, Plant and Equipment
(i) Oil and Gas Assets 5 1,106,790.52 1,084,766.83 1,121,177.57
(ii) Other Property, Plant and Equipment 6 90,680.70 92,216.22 96,435.14
(iii) Right-of-use assets 7 107,353.90 98,197.92 -
(b) Capital work in progress 8
(i) Oil and Gas Assets
1) Development wells in progress 54,970.43 49,220.38 39,961.12
2) Oil and gas facilities in progress 172,636.80 134,046.68 97,498.02
(ii) Others 20,505.62 16,898.70 17,776.28
(c) Intangible assets 9 2,172.53 1,809.59 1,744.59
(d) Intangible assets under development
(i) Exploratory wells in progress 10 161,377.93 162,089.68 195,266.87
(e) Financial assets
(i) Investments 11 813,764.40 790,855.47 911,162.82
(ii) Loans 13 13,274.07 11,824.75 10,461.26
(iii) Deposits under site restoration fund 14 233,586.78 221,522.23 180,926.09
(iv) Others 15 1,170.80 1,504.57 2,648.63
(f) Non-current tax assets (net) 29 76,558.02 90,430.66 94,272.41
(g) Other non-current assets 16 11,918.82 8,119.42 6,646.02
Total non- current assets 2,866,761.32 2,763,503.10 2,775,976.82
(2) Current assets
(a) Inventories 17 84,744.71 85,666.23 77,039.25
(b) Financial assets
(i) Trade receivables 12 77,973.25 47,773.93 84,399.60
(ii) Cash and cash equivalents 18 1,200.14 960.25 179.77
(iii) Other bank balances 19 1,825.37 8,722.01 4,860.84
(iv) Loans 13 3,834.74 5,117.26 6,339.30
(v) Others 15 33,898.76 27,739.31 46,174.78
(c) Other current assets 16 114,297.50 93,880.96 63,303.14
258
Sub-total current assets 317,774.47 269,859.95 282,296.68
Assets classified as held for sale - - 1,154.40
Total current assets 317,774.47 269,859.95 283,451.08
Total assets 3,184,535.79 3,033,363.05 3,059,427.90
II. EQUITY AND LIABILITIES
EQUITY
(a) Equity share capital 20 62,901.39 62,901.54 62,901.54
(b) Other equity 21 1,982,684.27 1,868,046.49 1,942,369.93
Total equity 2,045,585.66 1,930,948.03 2,005,271.47
 ANNUAL REPORT
2020-21
Particulars Note As at March As at March As at March
No. 31, 2021 31, 2020* 31, 2019*
LIABILITIES
(1) Non-current liabilities
(a)Financial liabilities
(i) Borrowings 27 63,275.21 22,450.97 -
(ii) Lease Liabilities 22 63,084.23 50,521.87 382.93
(iii) Others 23 63,802.92 5,772.15 20,674.91
(b) Provisions 24 305,351.83 279,392.06 236,247.37
(c) Deferred tax liabilities (net) 25 274,733.67 263,440.96 274,261.08
(d) Other non-current liabilities 26 403.30 387.88 326.14
Total non- current liabilities 770,651.16 621,965.89 531,892.43
(2) Current liabilities
(a) Financial liabilities
(i) Borrowings 27 86,951.43 117,040.13 215,935.72
(ii) Trade payables 28
- to micro and small enterprises 1,475.10 132.07 98.55
- to other than micro and small enterprises 62,291.38 71,004.20 88,151.43

Standalone Financial Statements

(iii) Lease Liabilities 22 41,126.60 47,743.88 35.03
(iv) Others 23 139,079.49 214,391.07 177,532.41
(b) Other current liabilities 26 23,188.89 18,663.06 24,154.87
(c) Provisions 24 13,858.26 10,975.34 15,856.61
(d) Current tax liabilities (net) 29 327.82 499.38 499.38
Total current liabilities 368,298.97 480,449.13 522,264.00
Total liabilities 1,138,950.13 1,102,415.02 1,054,156.43
Total equity and liabilities 3,184,535.79 3,033,363.05 3,059,427.90
Accompanying notes to the Standalone Financial Statements 1-58
* Restated, refer note no 52

FOR AND ON BEHALF OF THE BOARD

Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G.M. Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No: 006085N

Sd/- Sd/- Sd/- 259

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M.No. 048243) Partner (M. No. 093209) Partner (M.No. 084884)
Place: Mumbai Place: New Delhi Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 THE UNSTOPPABLE
ENERGY SOLDIERS
Standalone Statement of Profit and Loss for the year ended March 31, 2021 (` in million)

Particulars Note Year ended March Year ended March

No. 31, 2021 31, 2020*
I Revenue from operations 30 681,410.90 962,136.09
II Other income 31 71,425.07 66,101.65
III Total income (I+II) 752,835.97 1,028,237.74
IV EXPENSES
Changes in inventories of finished/ semi-finished goods and 32 & 33 (4,263.50) 2,469.93
work in progress
Production, transportation, selling and distribution expenditure 34 353,761.49 458,320.27
Exploration costs written off
a. Survey Costs 17,245.46 16,879.24
b. Exploratory well Costs 46,609.82 69,957.63
Finance costs 35 22,145.41 33,096.75
Depreciation, depletion, amortisation and impairment 36 163,273.77 186,168.58
Other impairment and write offs 37 3,785.96 8,476.58
Total expenses (IV) 602,558.41 775,368.98
V Profit before exceptional items and tax (III-IV) 150,277.56 252,868.76
VI Exceptional items- Income/(expenses) 47 13,750.34 (48,990.47)
VII Profit before tax (V+VI) 164,027.90 203,878.29
VIII Tax expense: 38
(a) Current tax relating to:
- current year 30,560.00 74,100.00
- earlier years 11,489.53 (3,612.78)
(b)Deferred tax 9,514.00 (1,245.77)
Total tax expense (VIII) 51,563.53 69,241.45
IX Profit for the year (VII-VIII) 112,464.37 134,636.84
X Other comprehensive income (OCI)
(a) Items that will not be reclassified to profit or loss
(i) Re-measurement of the defined benefit obligations (512.07) (4,414.00)
- Deferred tax 178.94 1,542.43
260 (ii) Equity instruments through other comprehensive income 26,479.55 (129,769.44)
- Deferred tax (1,957.67) 8,031.93
Total other comprehensive income (net of tax) (X) 24,188.75 (124,609.08)
XI Total comprehensive income for the year (IX+X) 136,653.12 10,027.76
XII Earnings per equity share: 40
Basic and diluted (in `) 8.94 10.70
Accompanying notes to the Standalone Financial Statements 1-58
* Restated, refer Note No. 52
 ANNUAL REPORT
2020-21
FOR AND ON BEHALF OF THE BOARD
Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G.M. Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No: 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M.No. 048243) Partner (M. No. 093209) Partner (M.No. 084884)
Place: Mumbai Place: New Delhi Place: New Delhi

Standalone Financial Statements

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021

Standalone Statement of Changes in Equity for the year ended March 31, 2021
i. Equity Share Capital (` in million)
Particulars Amount
Balance as at April 1, 2019 62,901.54
Change during the year -
Balance as at April 1, 2020 62,901.54
Change during the year (Note No.20.6) (0.15)
Balance as at March 31, 2021 62,901.39

261
 THE UNSTOPPABLE
ENERGY SOLDIERS
ii. Other Equity (` in million)

Particulars Reserves and Surplus Equity instru- Total

ments through
General Capital Capital Retained
Other compre-
reserve reserve redemption earnings
hensive income
reserve
Balance as at March 31, 2019 1,743,091.18 159.44 1,264.78 9,779.59 200,699.21 1,954,994.20
Effect of Restatement (Note No. - - - (12,624.27) - (12,624.27)
52)
Balance as at April 1, 2019* 1,743,091.18 159.44 1,264.78 (2,844.68) 200,699.21 1,942,369.93
Profit for the year - - - 134,636.84 - 134,636.84
Re-measurement of defined bene- - - - (2,871.57) - (2,871.57)
fit plans (net of tax)
Other comprehensive income for - - - - (121,737.51) (121,737.51)
the year (net of tax)
Total comprehensive income for - - - 131,765.27 (121,737.51) 10,027.76
the year*
Payment of dividends - - - (72,336.72) - (72,336.72)
Tax on dividends - - - (12,014.48) - (12,014.48)
Transfer to General Reserve 50,094.24 - - (50,094.24) - -
Balance as at March 31, 2020* 1,793,185.42 159.44 1,264.78 (5,524.85) 78,961.70 1,868,046.49
Profit for the year - - - 112,464.37 - 112,464.37
Re-measurement of defined bene- - - - (333.13) - (333.13)
fit plans (net of tax)
Other comprehensive income for - - - - 24,521.88 24,521.88
the year (net of tax)
Total comprehensive income for - - - 112,131.24 24,521.88 136,653.12
the year
262 Payment of dividends - - - (22,015.49) - (22,015.49)
Tax on dividends - - - - - -
Transfer on cancellation of forfeit- - 0.15 - - - 0.15
ed shares (Note No. 20.6)
Transfer to General Reserve 75,400.00 - - (75,400.00) - -
Balance as at March 31, 2021 1,868,585.42 159.59 1,264.78 9,190.90 103,483.58 1,982,684.27

* Restated, refer Note No. 52

 ANNUAL REPORT
2020-21
FOR AND ON BEHALF OF THE BOARD
Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G.M. Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No: 006085N
Sd/- Sd/- Sd/-
(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M.No. 048243) Partner (M. No. 093209) Partner (M.No. 084884)
Place: Mumbai Place: New Delhi Place: New Delhi
For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.

Standalone Financial Statements

Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No.002785S Firm Reg. No. 000560C
Sd/- Sd/- Sd/-
(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
Standalone Statement of Cash Flows for the year ended March 31, 2021 (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020*
i) CASH FLOWS FROM OPERATING ACTIVITIES:
Net Profit after tax 112,464.37 134,636.84
Adjustments For:
- Income tax expense 51,563.53 69,241.45
- Exceptional Items (13,750.34) 48,990.47
- Depreciation, Depletion, Amortisation and Impairment 163,273.77 186,168.58
- Exploratory Well Costs Written off 46,609.82 69,957.63
- Finance Cost 22,145.41 33,096.75
- Unrealized Foreign Exchange Loss/(Gain) (2,944.15) 17,644.30 263
- Other impairment and write offs 3,785.96 8,476.58
- Excess provision written back (8,241.57) (3,096.53)
- Interest income (10,610.98) (12,899.14)
- Loss / (gain) on fair valuation of financial instruments 1,479.86 1,472.93
- Amortization of Financial Guarantee (419.18) (424.60)
- Gain on revaluation of financial liability towards CCDs
(4,659.61) (5,038.27)
(Note No. 52.5.3)
- Re-measurement of Defined benefit plans (512.07) (4,414.00)
- Liabilities no longer required written Back (1,391.93) (1,288.44)
- Amortization of Government Grant (28.61) (17.18)
- Loss on sale of investment 956.81 -
- Profit on sale of Non-Current assets (1.04) -
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars Year ended March 31, 2021 Year ended March 31, 2020*
- Dividend Income (30,630.05) 216,625.63 (24,664.10) 383,206.43
Operating Profit before Working Capital Changes 329,090.00 517,843.27
Adjustments for
- Receivables (30,090.90) 36,651.46
- Loans and advances (1,062.56) 484.61
- Other assets (29,966.67) (8,377.62)
- Inventories (218.77) (9,851.64)
- Trade payable and other liabilities 37,248.29 (24,090.61) 107,963.26 126,870.07
Cash generated from Operations 304,999.39 644,713.34
Income Taxes Paid (Net of tax refund) (28,348.45) (66,645.47)
Net cash generated by operating activities “A” 276,650.94 578,067.87
ii) CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for Property, Plant and Equipment (152,537.96) (232,785.48)
Proceeds from disposal of Property, Plant and Equipment 1,580.20 3,377.64
Exploratory and Development Drilling (93,952.77) (103,838.90)
Investment in term deposits with maturity 3 to 12 months 6,930.00 (6,892.83)
Investment in Joint Ventures (9,199.08) (70.00)
Investment in Associates - (0.05)
Sale / (Investment) in Subsidiaries 12,163.03 (4,303.68)
Investment-Others (50.10) (125.00)
Deposit in Site Restoration fund (12,064.55) (40,596.14)
Dividends received from Subsidiaries, Associates and Joint
15,500.24 16,055.50
Ventures
Dividends received on other investments 15,129.81 8,608.60
Interest received 9,931.55 10,772.32
Net cash (used in)/generated by Investing Activities “B” (206,569.63) (349,798.02)
iii) CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from non-current borrowings 41,396.40 21,269.96
Proceeds/repayment of current borrowings (net) (28,536.21) (103,517.43)
Payment of lease liabilities (net of interest) (54,716.56) (48,879.12)
264 Interest expense on lease liabilities (3,808.25) (3,720.25)
Dividends paid on equity shares (22,053.19) (75,489.57)
Tax paid on Dividend - (12,014.48)
Interest paid (2,124.71) (5,120.15)
Net Cash Used in Financing Activities “C” (69,842.52) (227,471.04)
Net increase / (decrease) in cash and cash equivalents
238.79 798.81
(A+B+C)
Cash and cash equivalents at the beginning of the year 960.25 161.44
Cash and cash equivalents at the end of the year 1,199.04 960.25
238.79 798.81
* Restated, refer note no 52
 ANNUAL REPORT
2020-21
a) Cash and cash equivalents comprises of:- (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Balances with Banks 1,197.84 956.47
Cash in Hand 2.30 3.78
Cash and cash equivalents (Note No. 18) 1,200.14 960.25
Bank Overdraft (Note No. 27) (1.10) -
Cash and cash equivalents in Cash Flows Statement 1,199.04 960.25
b) Reconciliation of Liabilities arising from Financing Activities: -
For FY 2020-21 (` in million)

Financing Cash Flows Non Cash

Flows-

Standalone Financial Statements

Exchange As at
As at March
Particulars Proceeds Loss / (Gain) March 31,
31, 2020 Repayment
Raised & 2021
amortisation
of discount
Non-current borrowings
- Foreign Currency Bond (Note No. 27.5) 22,450.97 - - (572.52) 21,878.45
- Non-Convertible Debentures
- 41,396.40 - 0.36 41,396.76
(Note No. 27.4)
Total 22,450.97 41,396.40 - (572.16) 63,275.21

Financing Cash
Flows Non Cash Flows-
As at March 31, As at March 31,
Particulars Exchange Loss /
2020 Proceeds/repay- 2021
(Gain)
ment (net)
Current borrowings
- Foreign Currency Terms Loans
84,990.35 (53,301.08) (1,553.59) 30,135.68
(Note No. 27.1 & 27.2) 265
- Working Capital Loans (Note No. 27.3) 22,140.00 17,228.10 - 39,368.10
- Commercial Papers (Note No. 27.6) 9,909.78 7,536.77 - 17,446.55
Total 117,040.13 (28,536.21) (1,553.59) 86,950.33
 THE UNSTOPPABLE
ENERGY SOLDIERS
For FY 2019-2020 (` in million)
Financing Cash Flows Non Cash Flows -
As at
As at March Exchange Loss /
Particulars Proceeds March 31,
31, 2019 Repayment (Gain) & amortisa-
Raised 2020
tion of discount
Non-current borrowings
- Foreign Currency Bond (Note No. 27.5) - 21,269.96 - 1,181.01 22,450.97
Total - 21,269.96 - 1,181.01 22,450.97

Financing Cash Flows Non Cash

As at March Flows - As at March 31,
Particulars Proceeds/repayment
31, 2019 Exchange 2020
(net) Loss / (Gain)
Current borrowings
- Foreign Currency Terms Loans
77,930.46 2,419.72 4,640.17 84,990.35
(Note No. 27.1 & 27.2)
- Working Capital Loans (Note No. 27.3) 93,410.00 (71,270.00) - 22,140.00
- Commercial Papers (Note No. 27.6) 44,576.93 (34,667.15) - 9,909.78
Total 215,917.39 (103,517.43) 4,640.17 117,040.13

FOR AND ON BEHALF OF THE BOARD

Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G.M. Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No: 006085N

Sd/- Sd/- Sd/-

266 (Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M.No. 048243) Partner (M. No. 093209) Partner (M.No. 084884)
Place: Mumbai Place: New Delhi Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 ANNUAL REPORT
2020-21
Notes to the Standalone Financial Statement for (Indian Accounting Standards) Rules, 2015 (as
the year ended March 31, 2021 amended) with effect from April 1, 2016.
1. Corporate information The Financial Statements have been prepared
in accordance with Ind AS notified under the
Oil and Natural Gas Corporation Limited (‘ONGC’
Companies (Indian Accounting Standards)
or ‘the Company’) is a public limited Company
Rules, 2015 (as amended), the Companies Act,
domiciled and incorporated in India having
2013 and Guidance Note on Accounting for Oil
its registered office at Plot No. 5A-5B, Nelson
and Gas Producing Activities (Ind AS) issued by
Mandela Road, Vasant Kunj, New Delhi, South
the Institute of Chartered Accountants of India.
West Delhi – 110070. The Company’s shares are
listed and traded on Bombay Stock Exchange and 3.2. Basis of preparation
National Stock Exchange in India. The Company
The Financial Statements have been prepared
is engaged in exploration, development and
on going concern basis on the historical cost
production of crude oil, natural gas and value
convention using accrual system of accounting
added products.
except for certain assets and liabilities which
2. Application of new Indian Accounting are measured at fair value/amortised cost/Net

Standalone Financial Statements

Standards present value at the end of each reporting period,
as explained in the accounting policies below.
All the Indian Accounting Standards issued
under section 133 of the Companies Act, 2013 Historical cost is generally based on the fair value
and notified by the Ministry of Corporate Affairs of the consideration given in exchange for goods
(MCA) under the Companies (Indian Accounting and services.
Standards) Rules, 2015 (as amended) till the As the operating cycle cannot be identified
financial statements are approved have been in normal course due to the special nature of
considered in preparation of these Financial industry, the same has been assumed to have
Statements. duration of 12 months. Accordingly, all assets and
2.1. Standards issued but not yet effective liabilities have been classified as current or non-
current as per the Company’s operating cycle
The MCA has notified the Companies (Indian
and other criteria set out in Ind AS-1 ‘Presentation
Accounting Standards/ Ind AS) Amendment
of Financial Statements’ and Schedule III to the
Rules, 2021 on June 18, 2021, whereby the
Companies Act, 2013.
amendments to various Indian Accounting
Standards has been made applicable with The Standalone Financial Statements are
the immediate effect from the date of the presented in Indian Rupees and all values are
notification i.e. effective for financial year ended rounded off to the nearest two decimal million
March 31, 2022 onwards. except otherwise stated.
The amendments made vide aforesaid notification Fair value measurement
dated June 18, 2021 are largely clarificatory and Fair value is the price that would be received to 267
editorial in nature, the Company is evaluating the sell an asset or paid to transfer a liability in an
requirements of the same and its effect on the orderly transaction between market participants
Financial Statements is not likely to be material. at the measurement date under current market
3. Significant accounting policies conditions.
3.1. Statement of compliance The Company categorizes assets and liabilities
measured at fair value into one of three levels
In accordance with the notification dated
depending on the ability to observe inputs
16th February, 2015, issued by the Ministry of
employed in their measurement which are
Corporate Affairs, the Company has adopted
described as follows:
Indian Accounting Standards (referred to as “Ind
AS”) issued under section 133 of the Companies (a) Level 1 inputs are quoted prices (unadjusted)
Act, 2013 and notified under the Companies in active markets for identical assets or
 THE UNSTOPPABLE
ENERGY SOLDIERS
liabilities. subsidiary. Such deemed investment is added to
the carrying amount of investment in subsidiaries.
(b)Level 2 inputs are inputs that are observable,
Loans are accounted at amortized cost method
either directly or indirectly, other than quoted
using effective interest rate. If there is an early
prices included within level 1 for the asset or
repayment of loan made by the subsidiary, the
liability.
proportionate amount of the deemed investment
(c) Level 3 inputs are unobservable inputs for recognized earlier is adjusted.
the asset or liability reflecting significant
Where the Company is a sponsor in respect of
modifications to observable related market Compulsory Convertible Debentures issued by
data or Company’s assumptions about pricing subsidiaries & joint ventures and is mandatorily
by market participants. required to purchase such debentures, a
3.3. Investments in subsidiaries, associates and financial liability is recognized at fair value with
joint ventures a corresponding debit to deemed investment.
Financial liability is subsequently measured
The Company records the investments in
at amortized cost. The deemed investment is
subsidiaries, associates and joint ventures at
added to the carrying amount of investment in
cost less impairment loss, if any.
subsidiaries or joint ventures and carried at cost.
When the Company issues financial guarantees
3.4. Interests in joint operations
on behalf of subsidiaries, initially it measures
the financial guarantees at their fair values and A joint operation is a joint arrangement whereby the
subsequently measures at the higher of: parties that have joint control of the arrangement
have rights to the assets, and obligations for the
i. the amount of loss allowance determined in
liabilities, relating to the arrangement.
accordance with impairment requirements of
Ind AS 109 ‘Financial Instruments’ and The Company has Joint Operations in the
nature of Production Sharing Contracts (PSC)
ii. the amount initially recognized less, when and Revenue Sharing Contracts (RSC) with the
appropriate, the cumulative amount of income Government of India and various body corporates
recognised in accordance with the principles for exploration, development and production
of Ind AS 115 ‘Revenue from Contracts with activities.
Customers’.
The Company’s share in the assets and liabilities
The Company records the initial fair value of along with attributable income and expenditure
financial guarantee as deemed investment with of the Joint Operations is merged on line by
a corresponding liability recorded as deferred line basis with the similar items in the Financial
revenue under financial guarantee obligation. Statements of the Company and adjusted
Such deemed investment is added to the carrying for depreciation, depletion, survey, dry wells,
amount of investment in subsidiaries. Deferred decommissioning provision, impairment and
revenue is recognized in the Statement of Profit sidetracking in accordance with the accounting
268 and Loss over the remaining period of financial policies of the Company.
guarantee issued as other income.
The hydrocarbon reserves in such areas are
On disposal of investment in subsidiary, associate taken in proportion to the participating interest of
and joint venture, the difference between net the Company.
disposal proceeds and the carrying amounts
(including corresponding value of dilution in With respect to use of leased assets in the
deemed investment) are recognized in the joint operations, the Company recognizes
Statement of Profit and Loss. lease liability and corresponding right-of-use
asset in accordance with the terms of related
Interest free loans provided to subsidiary joint operating agreement/production sharing
are recognized at fair value on the date of contracts.
disbursement and the difference on fair
valuation is recognized as deemed investment in Gain or loss on sale of interest in a block, is
 ANNUAL REPORT
2020-21
recognized in the Statement of Profit and Loss, 3.7. Property, Plant and Equipment (other than Oil
except that no gain is recognized at the time and Gas Assets) and Right-of-use assets
of such sale if substantial uncertainty exists
The Company had elected to continue with
about the recovery of the costs applicable to
the carrying value of all of its Property, Plant
the retained interest or if the Company has
and Equipment recognised as of April 1, 2015
substantial obligation for future performance. The
(transition date) measured as per the Previous
gain in such situation is treated as recovery of
GAAP and used that carrying value as its deemed
cost related to that block.
cost as of the transition date except adjustment
3.5. Non-current assets held for sale related to decommissioning provisions.
Non-current assets or disposal groups classified Land and buildings held for use in the production
as held for sale are measured at the lower of or supply of goods or services, or for administrative
carrying amount and fair value less costs to sell. purposes, are stated in the Balance Sheet at cost
less accumulated depreciation and impairment
Non-current assets or disposal groups are
losses, if any. Freehold land and land under
classified as held for sale if their carrying amounts
perpetual lease are not depreciated.
will be recovered principally through a sale

Standalone Financial Statements

transaction rather than through continuing use. Property, Plant and Equipment (PPE) in the
This condition is regarded as met only when the course of construction for production, supply
sale is highly probable and the asset or disposal or administrative purposes are carried at cost,
group is available for immediate sale in its present less any recognised impairment loss. The cost
condition subject only to terms that are usual and of an asset comprises its purchase price or its
customary for sale of such assets. Management construction cost (net of applicable tax credits),
must be committed to the sale, which should be any cost directly attributable to bring the asset
expected to qualify for recognition as a completed into the location and condition necessary for it to
sale within one year from the date of classification be capable of operating in the manner intended
as held for sale, and actions required to complete by the Management and decommissioning cost
the plan of sale should indicate that it is unlikely as per Note no 3.13. It includes professional
that significant changes to the plan will be made fees and, for qualifying assets, borrowing costs
or that the plan will be withdrawn. capitalised in accordance with the Company’s
accounting policy. Such properties are classified
Property, Plant and Equipment and intangible
to the appropriate categories of PPE when
assets are not depreciated or amortized once
completed and ready for intended use. Parts of
classified as held for sale.
an item of PPE having different useful lives and
3.6. Government Grants significant value and subsequent expenditure
Government grants are not recognized until there on Property, Plant and Equipment arising on
is reasonable assurance that the Company will account of capital improvement or other factors
comply with the conditions attached to them and are accounted for as separate components.
that the grants will be received. Expenditure on dry docking of rigs and vessels 269
are accounted for as component of relevant
Monetary Government grants, whose primary assets.
condition is that the Company should purchase,
construct or otherwise acquire non-current assets Depreciation of PPE commences when the
and are recognized and disclosed as ‘deferred assets are ready for their intended use.
income’ under non-current liability in the Balance Depreciation is provided on the cost of PPE
Sheet and transferred to the Statement of Profit (other than freehold land, Oil and Gas Assets
and Loss on a systematic and rational basis over and properties under construction) less their
the useful lives of the related assets. residual values, using the written down value
All Non-monetary grants received are recognized method (except for components of dry docking
for both asset and grant at nominal value. capitalised) over the useful life of PPE as stated
in the Schedule II to the Companies Act, 2013 or
 THE UNSTOPPABLE
ENERGY SOLDIERS
based on technical assessment by the Company. when no future economic benefits are expected
Estimated useful lives of these assets are as to arise from the continued use of the asset. Any
under: gain or loss arising on the disposal or retirement
of an item of PPE is determined as the difference
Description Years between the net sales proceeds and the carrying
Building & Bunk Houses 3 to 60 amount of the asset and is recognised in the
Statement of Profit and Loss.
Plant & Machinery 2 to 40
Furniture & Fixtures 3 to 25 3.8 Intangible Assets

Vehicles, Ships & Boats 3 to 20 (i) Intangible assets acquired separately

Office Equipment 2 to 20 The Company had elected to continue with
the carrying value of all of its intangible assets
The estimated useful lives, residual values and
recognised as of April 1, 2015 (transition date)
depreciation method are reviewed on an annual
measured as per the Previous GAAP and used
basis and if necessary, changes in estimates are
that carrying value as its deemed cost as of the
accounted for prospectively.
transition date.
Depreciation on additions/deletions to PPE (other
Intangible assets with finite useful lives that are
than of Oil and Gas Assets) during the year is
acquired separately are carried at cost less
provided for on a pro-rata basis with reference to
accumulated amortisation and impairment losses.
the date of additions/deletions except low value
Amortisation is recognised on a straight-line basis
items not exceeding `5,000/- which are fully
over their estimated useful lives not exceeding
depreciated at the time of addition.
five years from the date of capitalisation. The
Depreciation on subsequent expenditure on PPE estimated useful life is reviewed at the end of each
(other than of Oil and Gas Assets) arising on reporting period and the effect of any changes in
account of capital improvement or other factors estimate is accounted for prospectively.
is provided for prospectively over the remaining
useful life. Intangible assets are derecognised on disposal,
or when no future economic benefits are
Depreciation on refurbished/revamped PPE expected from use or disposal. Gains or losses
(other than of Oil and Gas Assets) which are arising from derecognition of an intangible asset
capitalized separately is provided for over the are determined as the difference between the net
reassessed useful life. disposal proceeds and the carrying amount of
Depreciation on expenditure on dry docking of the asset, and recognised in the Statement of
rigs and vessels capitalized as component of Profit and Loss when the asset is derecognised.
relevant rig / vessels is charged over the dry dock (ii) Intangible assets under development -
period on straight line basis. Exploratory Wells in Progress
270 Depreciation on PPE (other than Oil and Gas All exploration and evaluation costs incurred in
Assets) including support equipment and drilling and equipping exploratory and appraisal
facilities used for exploratory/ development wells, are initially capitalized as Intangible
drilling is initially capitalised as part of drilling cost assets under development - Exploratory Wells in
and expensed / depleted as per Note No. 3.11. Progress till the time these are either transferred
Depreciation on equipment/ assets deployed for to Oil and Gas Assets on completion as per
survey activities is charged to the Statement of Note No.3.11 or expensed as exploration and
Profit and Loss. evaluation cost (including allocated depreciation)
Right-of-use assets are depreciated on a straight- as and when determined to be dry or of no further
line basis over the lease term or useful life of the use, as the case may be.
underlying asset, whichever is less. Cost of drilling exploratory type stratigraphic
An item of PPE is de-recognised upon disposal or test wells are initially capitalized as Intangible
 ANNUAL REPORT
2020-21
assets under development - Exploratory Wells in reporting period to see if there are any indications
Progress till the time these are either transferred that impairment losses recognized earlier, may
to Oil and Gas Assets as per Note No. 3.11 or no longer exist or may have come down. The
expensed as exploration and evaluation cost impairment loss is reversed, if there has been a
(including allocated depreciation) as when change in the estimates used to determine the
determined to be dry or the Petroleum Exploration asset’s recoverable amount since the previous
License is surrendered. impairment loss was recognized. If it is so, the
carrying amount of the asset is increased to
Costs of exploratory wells are not carried over
the lower of its recoverable amount and the
unless it could be reasonably demonstrated
carrying amount that have been determined, net
that there are indications of sufficient quantity of
of depreciation, had no impairment loss been
reserves and sufficient progress has been made
recognized for the asset in prior years. After a
in assessing the reserves and the economic and
reversal, the depreciation charge is adjusted
operating viability of the project. All such carried
in future periods to allocate the asset’s revised
over costs are subject to review for impairment as
carrying amount, less any residual value, on a
per the policy of the Company.
systematic basis over its remaining useful life.
3.9 Impairment of tangible, intangible assets and Reversals of Impairment loss are recognized in

Standalone Financial Statements

right-of-use assets the Statement of Profit and Loss.
The Company reviews the carrying amount of Exploration and Evaluation assets are tested for
its tangible and intangible assets (Oil and Gas Impairment when further exploration activities are
Assets, Development Wells in Progress (DWIP), not planned in near future or when sufficient data
Property, Plant and Equipment (including Capital exists to indicate that although a development
Works-in-Progress) and right-of use assets of a is likely to proceed, the carrying amount of the
“Cash Generating Unit” (CGU) at the end of each exploration asset is unlikely to be recovered
reporting period to determine whether there is in full from successful development or by sale.
any significant indication that those assets have Impairment loss is reversed subsequently, to
suffered an impairment loss. If any such indication the extent that conditions for impairment are no
exists, the recoverable amount of the asset is longer present.
estimated in order to determine the extent of the
3.10 Exploration & Evaluation, Development and
impairment loss (if any). When it is not possible to
Production Costs
estimate the recoverable amount of an individual
asset, the Company estimates the recoverable (i) Pre-acquisition cost
amount of the cash-generating unit to which the
Expenditure incurred before obtaining the
asset belongs. right(s) to explore, develop and produce oil and
Recoverable amount is the higher of fair value less gas are expensed as and when incurred.
costs of disposal and value in use. In assessing (ii) Acquisition cost
value in use, the estimated future cash flows are
discounted to their present value using a pre- Acquisition costs of Oil and Gas Assets are 271
tax discount rate that reflects current market costs related to right to acquire mineral interest
assessments of the time value of money and the and are accounted as follows: -
risks specific to the asset for which the estimates Exploration and development stage
of future cash flows have not been adjusted.
Acquisition cost relating to projects under
If the recoverable amount of an asset (or cash- exploration or development are initially
generating unit) is estimated to be less than its accounted as Intangible Assets under
carrying amount, the carrying amount of the development - exploratory wells in progress
asset (or cash-generating unit) is reduced to or Oil & Gas Assets under development -
its recoverable amount and impairment loss is development wells in progress respectively.
recognised in the Statement of Profit and Loss. Such costs are capitalized by transferring to
An assessment is made at the end of each Oil and Gas Assets when a well is ready to
 THE UNSTOPPABLE
ENERGY SOLDIERS
commence commercial production. In case costs are capitalised and classified as Oil and
of abandonment / relinquishment of Intangible Gas Assets.
Assets under development - exploratory wells in
Oil and Gas Assets are depleted using the “Unit
progress, such costs are written off.
of Production Method”. The rate of depletion
Production stage is computed with reference to an area covered
Acquisition costs of producing Oil and Gas by individual lease/license/asset/amortization
Assets are capitalized as proved property base by considering the proved developed
acquisition cost under Oil and Gas Assets and reserves and related capital costs incurred
amortized using the unit of production method including estimated future decommissioning
over proved reserves of underlying assets. / abandonment costs net of salvage value.
Acquisition cost of Oil and Gas Assets is depleted
(iii) Survey cost by considering the proved reserves. These
Cost of Survey and prospecting activities reserves are estimated annually by the Reserve
conducted in the search of oil and gas are Estimates Committee of the Company, which
expensed as exploration cost in the year in follows the International Reservoir Engineering
which these are incurred. Procedures.
(iv) Oil & Gas asset under development - 3.12 Side tracking
Development Wells in Progress In the case of an exploratory well, cost of side-
All costs relating to Development Wells are tracking is treated in the same manner as the
initially capitalized as ‘Development Wells in cost incurred on a new exploratory well. The cost
Progress’ and transferred to ‘Oil and Gas Assets’ of abandoned portion of side tracked exploratory
on “completion”. wells is expensed as ‘Exploration cost written
off’.
(v) Production costs
In the case of development wells, the entire
Production costs include pre-well head and
cost of abandoned portion and side tracking is
post-well head expenses including depreciation
capitalized.
and applicable operating costs of support
equipment and facilities. In case of side tracking of producing wells and
service wells which form part of the development
3.11 Oil and Gas Assets
schemes are treated as development wells
The Company had elected to continue with the and the cost incurred on the side tracking is
carrying value of all of its Oil and Gas assets capitalized.
recognised as of April 1, 2015 (transition date)
In the case of side tracking of producing wells
measured as per the Previous GAAP and used
and service wells which do not form part of the
that carrying value as its deemed cost as of
development schemes and the side-tracking
the transition date except adjustment related to
results in additional proved developed oil and
272 decommissioning provisions.
gas reserves or increases the future economic
Oil and Gas Assets are stated at historical cost benefits therefrom beyond previously assessed
less accumulated depletion and impairment standard of performance, the cost incurred on
losses. These are created in respect of an area side tracking is capitalised, whereas the cost of
/ field having proved developed oil and gas abandoned portion of the well is depleted in the
reserves, when the well in the area / field is ready normal way. Otherwise, the cost of side tracking
to commence commercial production. is expensed as ‘Work over Expenditure’.
Cost of temporary occupation of land, 3.13 Decommissioning costs
successful exploratory wells, all development
Decommissioning cost includes cost of
wells (including service wells), allied facilities,
restoration. Provision for decommissioning costs
depreciation on support equipment used for
is recognized when the Company has a legal or
drilling and estimated future decommissioning
constructive obligation to plug and abandon a
 ANNUAL REPORT
2020-21
well, dismantle and remove a facility or an item realisable value. The value of inventories includes
of Property, Plant and Equipment and to restore excise duty and royalty (wherever applicable)
the site on which it is located. The full eventual but excludes cess.
estimated provision towards costs relating to
Crude oil in semi-finished condition at Group
dismantling, abandoning and restoring well sites
Gathering Stations (GGS) is valued at cost on
and allied facilities are recognized in respective
absorption costing method or net realisable
assets when the well is complete / facilities or
value whichever is lower.
Property, Plant and Equipment are installed.
Crude oil in unfinished condition in flow lines up
The amount recognized is the present value of
to GGS / platform is not valued as the same is
the estimated future expenditure determined
not measurable. Natural Gas is not valued as it
using existing technology at current prices and
is not stored.
escalated using appropriate inflation rate till
the expected date of decommissioning and Inventory of stores and spare parts is valued at
discounted up to the reporting date using the weighted average cost or net realisable value,
appropriate risk free discount rate. whichever is lower. Provisions are made for
obsolete and non-moving inventories.
An amount equivalent to the decommissioning

Standalone Financial Statements

provision is recognized along with the cost of Unserviceable and scrap items, when
exploratory well or Property, Plant and Equipment. determined, are valued at estimated net
The decommissioning cost in respect of dry well realisable value.
is expensed as exploratory well cost.
3.15 Revenue recognition
Any change in the present value of the estimated
The Company derives revenues primarily from
decommissioning provision other than the
sale of products and services, such as crude
periodic unwinding of discount is adjusted to
oil, natural gas, value added products, pipeline
the decommissioning provision and the carrying
transportation and processing services.
value of the related asset. In case reversal of
decommissioning provision exceeds the carrying Revenue from contracts with customers is
amount of the related asset including WDV of recognized at the point in time when the
the capitalised portion of decommissioning Company satisfies a performance obligation
provision in the carrying amount of the related by transferring control of a promised product or
asset, the excess amount is recognized in the service to a customer at an amount that reflects
Statement of Profit and Loss. The unwinding the consideration to which the Company expects
of discount on provision is charged in the to be entitled in exchange for the sale of products
Statement of Profit and Loss as finance cost. and service, net of discount, taxes or duties. The
transfer of control on sale of crude oil, natural
Provision for decommissioning cost in respect of
gas and value added products occurs at the
assets under Joint Operations is considered as
point of delivery, where usually the title is passed
per participating interest of the Company on the
and the customer takes physical possession, 273
basis of estimates approved by the respective
depending upon the contractual conditions. Any
operating committee. Wherever the same
retrospective revision in prices is accounted for
are not approved by the respective operating
in the year of such revision.
committee, decommissioning cost estimates of
the Company are considered. Sale of crude oil and natural gas (net of
levies) produced from Intangible assets under
3.14 Inventories
development – Exploratory Wells in Progress
Finished goods (other than Sulphur and carbon / Oil and Gas assets under development –
credits) including inventories in pipelines / Development Wells in Progress is deducted
tanks are valued at cost or net realisable value from expenditure on such wells.
whichever is lower. Cost of finished goods is
Any payment received in respect of contractual
determined on absorption costing method.
short lifted gas quantity for which an obligation
Sulphur and carbon credits are valued at net
 THE UNSTOPPABLE
ENERGY SOLDIERS
exists to make-up such gas in subsequent (i) the contract involves use of an identified asset,
periods is recognised as Contract Liabilities
(ii) the Company obtains substantially all of the
in the year of receipt. Revenue in respect of
economic benefits from the use of the asset
such contractual short lifted quantity of gas is
through the period of the lease and
recognized when such gas is actually supplied
or when the customer’s right to make up is (iii) the Company has the right to direct the use of
expired, whichever is earlier. the asset.
As per the Production Sharing Contracts for The Company as a ‘lessee’
extracting the Oil and Gas Reserves with
At the date of commencement of the lease, the
Government of India, out of the earnings from
Company recognises a right-of-use asset (ROU
the exploitation of reserves after recovery of
asset) and a corresponding lease liability for all
cost, a part of the revenue is paid to Government
hiring contracts / arrangements in which it is a
of India which is called Profit Petroleum. It is
lessee, except for lease with a term of twelve
reduced from the revenue from Sale of Products
months or less (i.e. short term leases) and lease
as Government of India’s Share in Profit
of low value assets. For these short-term and low
Petroleum.
value leases, the Company recognizes the lease
Revenue in respect of the following is recognized payments on straight-line basis over the term of
when collectability of the receivable is reasonably the lease.
assured:
Certain lease arrangements include the options
(i) Contractual short lifted quantity of gas with no to extend or terminate the lease before the end of
obligation for make-up the lease term. ROU assets and lease liabilities
includes these options when it is reasonably
(ii) Interest on delayed realization from customers
certain that they will be exercised.
and cash calls from JV partners
The lease liability is initially measured at present
(iii) Liquidated damages from contractors/suppliers
value of the future lease payments over the
Dividend and interest income reasonably certain lease term. The lease
Dividend income from investments is recognised payments are discounted using the interest rate
when the shareholder’s right to receive payment implicit in the lease, if it not readily determinable,
is established and it became probable that the using the incremental borrowing rate. For leases
economic benefits associated with the dividend with similar characteristics, the Company,
will flow to the company, and the amount of the on a lease by lease basis, applies either the
dividend can be measured reliably. incremental borrowing rate specific to the lease
or the incremental borrowing rate for the portfolio
Interest income from financial assets is as a whole.
recognised at the effective interest rate method
applicable on initial recognition. The right-of-use assets are initially recognized
274 at cost, which comprises the amount of the
3.16 Leases initial measurement of the lease liability adjusted
Effective April 01, 2019, the Company adopted Ind for any lease payments made at or before the
AS 116 “Leases” using the modified prospective inception date of the lease along with any initial
approach. The new standard defines a lease as direct costs, restoration obligations and lease
a contract that conveys the right to control the incentives received.
use of an identified asset for a period of time in Subsequently, the right-of-use assets is measured
exchange for consideration. The Company has at cost less any accumulated depreciation and
exercised the option not to apply this standard to accumulated impairment losses, if any. The right-
leases of intangible assets. of-use assets is depreciated using the straight-
To assess whether a contract conveys the right line method from the commencement date over
to control the use of an identified asset, the the shorter of lease term or useful life of right-
Company assesses whether: of-use assets. The Company applies Ind AS 36
 ANNUAL REPORT
2020-21
to determine whether a ROU asset is impaired All short term employee benefits are recognized
and accounts for any identified impairment loss at their undiscounted amount in the accounting
as described in the accounting policy below on period in which they are incurred.
“Impairment of tangible, intangible assets and
(i) Defined contribution plans
right-of-use assets”.
Employee Benefit under defined contribution
The interest cost on lease liability (computed
plans comprising Contributory provident fund,
using effective interest method), is expensed in
Post Retirement benefit scheme, Employee
the statement of profit and loss, unless eligible
pension scheme-1995, composite social
for capitalization as per accounting policy below
security scheme etc. is recognized based on
on “Borrowing costs”.
the undiscounted amount of obligations of the
The Company accounts for each lease Company to contribute to the plan. The same is
component within the contract as a lease paid to a fund administered through a separate
separately from non-lease components of the trust.
contract in accordance with Ind AS 116 and
(ii) Defined benefit plans
allocates the consideration in the contract to
each lease component on the basis of the relative Defined employee benefit plans comprising of

Standalone Financial Statements

stand-alone price of the lease component and gratuity, post-retirement medical benefits and
the aggregate stand-alone price of the non- other terminal benefits, are recognized based on
lease components. the present value of defined benefit obligation
which is computed using the projected unit
Lease liability and ROU asset have been
credit method, with actuarial valuations being
separately presented in the Balance Sheet
carried out at the end of each annual reporting
and lease payments have been classified as
period. These are accounted either as current
financing cash flows.
employee cost or included in cost of assets as
3.17 Foreign Exchange Transactions permitted.
The functional currency of the Company is Net interest on the net defined liability is
Indian Rupees which represents the currency calculated by applying the discount rate at the
of the primary economic environment in which it beginning of the period to the net defined benefit
operates. liability or asset and is recognised the Statement
of Profit and Loss except those included in cost
Transactions in currencies other than the of assets as permitted.
Company’s functional currency (foreign
currencies) are recognised at the rates of Remeasurement of defined retirement benefit
exchange prevailing at the dates of the plans except for leave encashment towards
transactions. At the end of each reporting un-availed leave and compensated absences,
period, monetary items denominated in foreign comprising actuarial gains and losses, the effect
currencies are translated using mean exchange of the changes to the asset ceiling (if applicable)
rate prevailing on the last day of the reporting and the return on plan assets (excluding net 275
period. interest as defined above), are recognised in
other comprehensive income except those
Exchange differences on monetary items are included in cost of assets as permitted in
recognised in the Statement of Profit and Loss in the period in which they occur and are not
the period in which they arise. subsequently reclassified to profit or loss.
3.18 Employee Benefits The Company contributes all ascertained
Employee benefits include salaries, wages, liabilities with respect to gratuity and un-availed
Contributory provident fund, gratuity, leave leave to the ONGC’s Gratuity Fund Trust (OGFT)
encashment towards un-availed leave, and Life Insurance Corporation of India (LIC),
compensated absences, post-retirement respectively. Other defined benefit schemes are
medical benefits and other terminal benefits. unfunded.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The retirement benefit obligation recognised in 3.23 Income Taxes
the Financial Statements represents the actual
Income tax expense represents the sum of the
deficit or surplus in the Company’s defined
current tax and deferred tax.
benefit plans. Any surplus resulting from this
calculation is limited to the present value of (i) Current tax
any economic benefits available in the form of
The tax currently payable is based on taxable
reductions in future contributions to the plans.
profit for the year. Taxable profit differs from
(iii) Other long term employee benefits ‘profit before tax’ as reported in the Statement
of Profit and Loss because of items of income
Other long term employee benefit comprises of
or expense that are taxable or deductible in
leave encashment towards un-availed leave and
other years and items that are never taxable
compensated absences. These are recognized
or deductible. The Company’s current tax is
based on the present value of defined obligation
calculated using tax rates and laws that have
which is computed using the projected unit
been enacted or substantively enacted by the
credit method, with actuarial valuations being
end of the reporting period and any adjustment
carried out at the end of each annual reporting
to tax payable in respect of previous year.
period. These are accounted either as current
employee cost or included in cost of assets as (ii) Deferred tax
permitted.
Deferred tax is recognised using the balance
Re-measurements of leave encashment towards sheet method, providing for temporary
un-availed leave and compensated absences differences between the carrying amounts of
are recognized in the Statement of profit and assets and liabilities in the Financial Statements
loss except those included in cost of assets as and the corresponding tax bases used in the
permitted in the period in which they occur. computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable
3.19 Voluntary Retirement Scheme
temporary differences. Deferred tax assets are
Expenditure on Voluntary Retirement Scheme generally recognised for all deductible temporary
(VRS) is charged to the Statement of Profit and differences to the extent that it is probable that
Loss when incurred. taxable profits will be available against which
3.20 General Administrative Expenses those deductible temporary differences can be
utilised.
General administrative expenses which are
directly attributable are allocated to activities The carrying amount of deferred tax assets is
and the balance is charged to Statement of reviewed at the end of each reporting period and
Profit and Loss. reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
3.21 Insurance claims allow all or part of the deferred tax asset to be
276 Insurance claims are accounted for on the basis utilized.
of claims admitted/expected to be admitted to Deferred tax liabilities and assets are measured
the extent that the amount recoverable can be at the tax rates that are expected to apply in the
measured reliably and it is virtually certain to period in which the liability is settled or the asset
expect ultimate collection. realised, based on tax rates (and tax laws) that
3.22 Research and Development Expenditure have been enacted or substantively enacted
by the end of the reporting period. Deferred tax
Expenditure of capital nature are capitalised
assets and liabilities are offset if there is a legally
and expenses of revenue nature are charged to
enforceable right to offset current tax liabilities
the Statement of Profit and Loss, as and when
and assets, and they relate to income taxes
incurred.
levied by the same tax authority.
 ANNUAL REPORT
2020-21
The measurement of deferred tax liabilities and loss previously recognised as an adjustment is
assets reflects the tax consequences that would recognised as an adjustment to interest.
follow from the manner in which the Company
3.25 Rig Days Costs
expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets Rig movement costs are booked to the next
and liabilities. location drilled/planned for drilling. Abnormal
Rig days’ costs are considered as un-allocable
Deferred tax assets include Minimum Alternative and charged to the Statement of Profit and Loss.
Tax (MAT) paid in accordance with the tax laws
in India, which is likely to give future economic 3.26 Provisions, Contingent Liabilities and
benefits in the form of availability of set off against Contingent Assets
future income tax liability. Accordingly, MAT is Provisions are recognised when the Company
recognised as deferred tax asset in the balance has a present obligation (legal or constructive)
sheet when the asset can be measured reliably as a result of a past event, it is probable that
and it is probable that the future economic the Company will be required to settle the
benefit associated with asset will be realised. obligation, and a reliable estimate can be made
of the amount of the obligation.

Standalone Financial Statements

(iii) Current and deferred tax expense for the year
Current and deferred tax expense is recognised The amount recognised as a provision is the
in the Statement of Profit and Loss, except when best estimate of the consideration required to
they relate to items that are recognised in other settle the present obligation at the end of the
comprehensive income or directly in equity, in reporting period, taking into account the risks
which case, the current and deferred tax are and uncertainties surrounding the obligation.
also recognised in other comprehensive income When a provision is measured using the cash
or directly in equity respectively. flows estimated to settle the present obligation,
its carrying amount is the present value of those
3.24 Borrowing or Finance Costs cash flows (when the effect of the time value of
Borrowing costs including finance cost on lease money is material).
liability specifically identified to the acquisition or Contingent assets are disclosed in the Financial
construction of qualifying assets or development Statements by way of notes to accounts when
wells or exploratory wells is capitalized as part an inflow of economic benefits is probable.
of such assets. A qualifying asset is one that
necessarily takes substantial period of time to Contingent liabilities are disclosed in the Financial
get ready for intended use. All other borrowing Statements by way of notes to accounts, unless
costs are charged to the Statement of Profit and possibility of an outflow of resources embodying
Loss. economic benefit is remote. Contingent liabilities
are disclosed on the basis of judgment of the
Borrowing cost also includes exchange management/independent experts. These are
differences arising from foreign currency reviewed at each balance sheet date and are
borrowings to the extent that they are regarded 277
adjusted to reflect the current management
as an adjustment to interest costs i.e. equivalent estimate.
to the extent to which the exchange loss does
not exceed the difference between the cost 3.27 Financial instruments
of borrowing in functional currency (`) when Financial assets and financial liabilities are
compared to the cost of borrowing in a foreign recognised when Company becomes a party to
currency. the contractual provisions of the instruments.
When there is an unrealised exchange loss Financial assets and financial liabilities are
which is treated as an adjustment to interest and initially measured at fair value. Transaction costs
subsequently there is a realised or unrealised that are directly attributable to the acquisition or
gain in respect of the settlement or translation of issue of financial assets and financial liabilities
the same borrowing, the gain to the extent of the (other than financial assets and financial liabilities
 THE UNSTOPPABLE
ENERGY SOLDIERS
at fair value through profit or loss) are added to subsequent changes in the fair value of equity
or deducted from the fair value of the financial investments not held for trading.
assets or financial liabilities, as appropriate,
(iv) Financial assets at fair value through profit or
on initial recognition. Transaction costs directly
loss
attributable to the acquisition of financial assets
or financial liabilities at fair value through profit Financial assets are measured at fair value
or loss are recognised immediately in the through profit or loss unless it is measured at
Statement of Profit and Loss. amortised cost or at fair value through other
comprehensive income on initial recognition.
3.28 Equity instruments
(v) Impairment of financial assets
Equity instruments issued by the Company are
recorded at the proceeds received, net of direct The Company assesses at each balance sheet
issue costs. date whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
3.29 Financial assets
expected credit losses to be measured through
(i) Cash and cash equivalents a loss allowance. The Company recognises
lifetime expected losses for trade receivables
The Company considers all highly liquid financial
that do not constitute a financing transaction. For
instruments, which are readily convertible into
all other financial assets, expected credit losses
known amounts of cash that are subject to an
are measured at an amount equal to 12 month
insignificant risk of change in value and having
expected credit losses or at an amount equal to
original maturities of three months or less from
lifetime expected losses, if the credit risk on the
the date of purchase, to be cash equivalents.
financial asset has increased significantly since
Cash and cash equivalents consist of balances
initial recognition.
with banks which are unrestricted for withdrawal
and usage. (vi) Derecognition of financial assets
(ii) Financial assets at amortised cost The Company derecognises a financial asset
when the contractual rights to the cash flows
Financial assets are subsequently measured
from the asset expire, or when it transfers the
at amortised cost using the effective interest
financial asset and substantially all the risks and
method if these financial assets are held within
rewards of ownership of the asset to another
a business whose objective is to hold these
party.
assets in order to collect contractual cash flows
and the contractual terms of the financial asset On derecognition of a financial asset in
give rise on specified dates to cash flows that its entirety (except for equity instruments
are solely payments of principal and interest on designated as FVTOCI), the difference between
the principal amount outstanding. the asset’s carrying amount and the sum of
the consideration received and receivable is
(iii) Financial assets at fair value through other
278 recognised in the Statement of Profit and Loss.
comprehensive income
3.30 Financial liabilities
Financial assets are measured at fair value
through other comprehensive income if these (a) Financial guarantee contracts
financial assets are held within a business
A financial guarantee contract is a contract
whose objective is achieved by both collecting
that requires the issuer to make specified
contractual cash flows and selling financial
payments to reimburse the holder for a loss it
assets and the contractual terms of the financial
incurs because a specified debtor fails to make
asset give rise on specified dates to cash flows
payments when due in accordance with the
that are solely payments of principal and interest
terms of a debt instrument.
on the principal amount outstanding.
Financial guarantee contracts issued by the
The Company has made an irrevocable election
Company are initially measured at their fair
to present in other comprehensive income
 ANNUAL REPORT
2020-21
values and, if not designated as at FVTPL, are method, whereby profit after tax is adjusted
subsequently measured at the higher of: for the effects of transactions of a non-cash
nature, any deferrals or accruals of future or
i. the amount of loss allowance determined in
past operating cash receipts or payments and
accordance with impairment requirements of
item of income or expenses associated with
Ind AS 109; and
investing or financing cash flows. The cash flows
ii. the amount initially recognised less, when are segregated into operating, investing and
appropriate, the cumulative amount of financing activities.
income recognised in accordance with
3.33 Segment reporting
the principles of Ind AS 115. [refer Note
No. 3.3 for Financial guarantee issued to Operating segments are identified and reported
subsidiaries] taking into account the different risks and
returns, the organization structure and the
(b) Financial liabilities
internal reporting systems.
Financial liabilities are measured at amortised
4. Critical Accounting Judgments, Assumptions
cost using the effective interest method.
and Key Sources of Estimation Uncertainty

Standalone Financial Statements

(c) Derecognition of financial liabilities
Inherent in the application of many of the
The Company derecognises financial liabilities accounting policies used in preparing the
when, and only when, the Company’s obligations Financial Statements is the need for Management
are discharged, cancelled or have expired. to make judgments, estimates and assumptions
The difference between the carrying amount that affect the reported amounts of assets and
of the financial liability derecognised and the liabilities, the disclosure of contingent assets
consideration paid and payable is recognised in and liabilities, and the reported amounts of
the Statement of Profit and Loss. revenues and expenses. Actual outcomes could
When an existing financial liability is exchanged differ from the estimates and assumptions used.
with another financial liability, from the existing Estimates and underlying assumptions are
lender of the debt instrument on substantially reviewed on an ongoing basis. Revisions to
different terms, or the terms of an existing accounting estimates are recognised in the
financial liability are substantially modified, such period in which the estimates are revised and
an exchange or modification is treated as the future periods are affected.
derecognition of the original financial liability and
Key source of judgments, assumptions and
the recognition of a new financial liability. The
estimation uncertainty in the preparation of
difference in the respective carrying amount is
the Financial Statements which may cause a
recognised in the Statement of Profit and Loss.
material adjustment to the carrying amounts
3.31 Earnings per share of assets and liabilities within the next financial
Basic earnings per share are computed by year, are in respect of Oil and Gas reserves, long
dividing the net profit after tax by the weighted term production profile, impairment, useful lives 279
average number of equity shares outstanding of Property, Plant and Equipment, depletion of
during the period. Diluted earnings per share oil and gas assets, decommissioning provision,
is computed by dividing the profit after tax by employee benefit obligations, impairment,
the weighted average number of equity shares provision for income tax, measurement of
considered for deriving basic earnings per deferred tax assets, litigation and contingent
share and also the weighted average number of assets and liabilities.
equity shares that could have been issued upon 4.1 Critical judgments in applying accounting
conversion of all dilutive potential equity shares. policies
3.32 Statement of Cash Flow The following are the critical judgements, apart
Cash flows are reported using the indirect from those involving estimations (refer Note No.
4.2), that the Management have made in the
 THE UNSTOPPABLE
ENERGY SOLDIERS
process of applying the Company’s accounting the shareholder agreement between all the
policies and that have the significant effect shareholders provides for sharing of control of
on the amounts recognized in the Financial the decisions of relevant activities that require
Statements. the unanimous consent of all the parties sharing
control.
(a) Determination of functional currency
(c) Identifying whether a contract includes a
Currency of the primary economic environment
lease
in which the Company operates (“the functional
currency”) is Indian Rupee (`) in which the The Company enters into hiring/service
Company primarily generates and expends cash. arrangements for various assets/services. The
Accordingly, the Management has assessed its Company evaluates whether a contract contains
functional currency to be Indian Rupee (`). a lease or not, in accordance with the principles of
Ind AS 116. This requires significant judgements
(b) Classification of investment
including but not limited to, whether asset is
Judgment is required in assessing the level implicitly identified, substantive substitution
of control obtained in a transaction to acquire rights available with the supplier, decision
an interest in another entity; depending making rights with respect to how the underlying
upon the facts and circumstances in each asset will be used, economic substance of the
case, the Company may obtain control, joint arrangement, etc.
control or significant influence over the entity
(d) Determining lease term (including extension
or arrangement. Transactions which give the
and termination options)
Company control of a business are business
combinations. If the Company obtains joint The Company considers the lease term as the
control of an arrangement, judgement is also non-cancellable period of a lease adjusted with
required to assess whether the arrangement is a any option to extend or terminate the lease, if
joint operation or a joint venture. If the Company the use of such option is reasonably certain.
has neither control nor joint control, it may be in a Assessment of extension/termination options is
position to exercise significant influence over the made on lease by lease basis, on the basis of
entity, which is then classified as an associate. relevant facts and circumstances. The lease term
is reassessed if an option is actually exercised.
The Company has 49.36% equity interest in
In case of contracts, where the Company has the
ONGC Petro additions Limited (OPaL). The
option to hire and de-hire the underlying asset
Company has subscribed for 3,451.24 million
on some circumstances (such as operational
(Previous year 2,558.00 million) share warrants
requirements), the lease term is considered to
as at March 31, 2021, entitling the Company to
be initial contract period.
exchange each warrant with an equity share of
face value of `10 each against which `9.75 each (e) Identifying lease payments for computation
has been paid. of lease liability
280 Further the Company has entered into an To identify fixed (including in-substance fixed)
arrangement for backstopping support lease payments, the Company consider the non-
towards repayment of principal and coupon of operating day rate/standby as minimum fixed
Compulsory Convertible Debentures (CCDs) lease payments for the purpose of computation
amounting to `77,780.00 million (Previous of lease liability and corresponding right of use
year `77,780.00 million) issued by ONGC asset.
Petro additions Limited in three tranches. The
(f) Low value leases
outstanding interest accrued as at March
31, 2021 is `1,926.75 million (Previous year Ind AS 116 requires assessment of whether an
`2,722.77 million). underlying asset is of low value, if lessee opts
for the option of not to apply the recognition
The Company has evaluated the interest in
and measurement requirements of Ind AS 116
OPaL to be in the nature of joint venture as
 ANNUAL REPORT
2020-21
to leases where the underlying asset is of low 4.2 Assumptions and key sources of estimation
value. For the purpose of determining low value, uncertainty
the Company has considered nature of assets
Information about estimates and assumptions
and concept of materiality as defined in Ind AS
that have the significant effect on recognition
1 and the conceptual framework of Ind AS which and measurement of assets, liabilities, income
involve significant judgement. and expenses is provided below. Actual results
(g) Evaluation of indicators for impairment of Oil may differ from these estimates.
and Gas Assets (a) Estimation of provision for decommissioning
The evaluation of applicability of indicators of The Company estimates provision for
impairment of assets requires assessment of decommissioning as per the principles of
external factors (significant decline in asset’s Ind AS 37 ‘Provisions, Contingent Liabilities
value, significant changes in the technological, and Contingent Assets’ for the future
market, economic or legal environment, decommissioning of Oil and Gas assets at
market interest rates etc.) and internal factors the end of their economic lives. Most of these
(obsolescence or physical damage of an asset, decommissioning activities would be in the
poor economic performance of the asset etc.)

Standalone Financial Statements

future, the exact requirements that may have
which could result in significant change in to be met when the removal events occur
recoverable amount of the Oil and Gas Assets. are uncertain. Technologies and costs for
(h) Oil & Gas Accounting decommissioning are constantly changing. The
timing and amounts of future cash flows are
The determination of whether potentially
subject to significant uncertainty.
economic oil and natural gas reserves have
been discovered by an exploration well is usually The timing and amount of future expenditures
made within one year of well completion, but are reviewed annually or when there is a
can take longer, depending on the complexity material change, together with rate of inflation
of the geological structure. Exploration wells that for escalation of current cost estimates and the
discover potentially economic quantities of oil interest rate used in discounting the cash flows.
and natural gas and are in areas where major The economic life of the Oil and Gas assets is
capital expenditure (e.g. an offshore platform or estimated on the basis of long term production
a pipeline) would be required before production profile of the relevant Oil and Gas asset. The
could begin, and where the economic viability long term average General Consumer Price
of that major capital expenditure depends on Index (CPI) for inflation i.e. 4.47% (Previous
the successful completion of further exploration year 4.25%) has been used for escalation of the
work in the area, remain capitalized on the current cost estimates and pre- tax discounting
balance sheet as long as additional exploration rate used to determine the balance sheet
or appraisal work is under way or firmly planned. obligation as at the end of the year is long term
average risk free government bond rate with 10
It is not unusual to have exploration wells
year yield i.e. 7.05% (Previous year 7.39%). 281
and exploratory-type stratigraphic test wells
remaining suspended on the balance sheet (b) Determining discount rate for computation of
for several years while additional appraisal lease liability
drilling and seismic work on the potential oil For computation of lease liability, Ind AS
and natural gas field is performed or while the 116 requires lessee to use their incremental
optimum development plans and timing are borrowing rate as discount rate if the rate
established. All such carried costs are subject to implicit in the lease contract cannot be readily
regular technical, commercial and management determined.
review on at least an annual basis to confirm the
continued intent to develop, or otherwise extract For leases denominated in Company’s
value from the discovery. Where this is no longer functional currency, the Company considers the
the case, the costs are immediately expensed. incremental borrowing rate to be risk free rate
of government bond as adjusted with applicable
 THE UNSTOPPABLE
ENERGY SOLDIERS
credit risk spread and other lease specific The discount rate used is based upon the cost of
adjustments like relevant lease term. For leases capital from an established model.
denominated in foreign currency, the Company
The value in use of the producing/developing
considers the incremental borrowing rate as risk
CGUs is determined under a multi-stage
free rate based on US treasury bills as adjusted
approach, wherein future cash flows are
with applicable credit risk spread and other lease
initially estimated based on Proved Developed
specific adjustments like relevant lease term and
currency of the obligation. Reserves. Under circumstances where the
further development of the fields in the CGUs is
(c) Determination of cash generating unit (CGU) under progress and where the carrying value of
The Company is engaged mainly in the business the CGUs is not likely to be recovered through
of oil and gas exploration and production in exploitation of proved developed reserves alone,
Onshore and Offshore. In case of onshore the Proved and probable reserves (2P) of the
assets, the fields are using common production/ CGUs are also taken for the purpose of estimating
transportation facilities and are sufficiently future cash flows. In such cases, full estimate of
economically interdependent to constitute a the expected cost of evaluation/development
single cash generating unit (CGU). Accordingly, is also considered while determining the value
impairment test of all onshore fields is performed in use.
in aggregate of all those fields at the Asset Level. The discount rates applied in the assessment
In case of Offshore Assets, a field is generally of impairment calculation are re-assessed
considered as CGU except for fields which are each year.
developed as a Cluster or group of Clusters, for
which common facilities are used, in which case (e) Estimation of reserves
the impairment testing is performed in aggregate Management estimates reserves in relation to all
for all the fields included in the Cluster or group the Oil and Gas Assets based on the policies
of Clusters. and procedures determined by the Reserves
(d) Impairment of assets Estimation Committee (REC) of the Company.
The estimates so determined are used for
Determination as to whether, and by how much, the computation of depletion and impairment
a CGU is impaired involves Management testing.
estimates on uncertain matters such as future
crude oil, natural gas and value added product The year-end reserves of the Company are
(VAP) prices, the effects of inflation on operating estimated by the REC which follows international
expenses, discount rates, production profiles for reservoir engineering procedures consistently.
crude oil, natural gas and value added products. For reporting its petroleum resources, Company
For Oil and Gas assets, the expected future follows universally accepted Petroleum
cash flows are estimated using Management’s Resources Management System-PRMS (2018)
best estimate of future crude oil and natural gas sponsored by Society of Petroleum Engineers
282 prices, production and reserves volumes. (SPE), World Petroleum Council (WPC), American
Association of Petroleum Geologists (AAPG),
The present values of cash flows are determined Society of Petroleum Evaluation Engineers
by applying pre tax-discount rates of 14.29% (SPEE), Society of Exploration Geophysicists
(Previous year 15.55%) for Rupee transactions (SEG), Society of Petrophysicists and Well Log
and 9.60% (Previous year 10.07%) for crude Analysts (SPWLA) and European Association of
oil, natural gas and value added products Geoscientists and Engineers (EAGE).
revenue, which are measured in US$. Future
cash inflows from sale of crude oil, natural gas PRMS (2018) defines Proved Reserves under
and value added products are estimated using Reserves category as those quantities of
Management’s best estimate of future prices petroleum that, by analysis of geoscience
and its co-relations with benchmark crudes and and engineering data, can be estimated
other petroleum products. with reasonable certainty to be commercially
 ANNUAL REPORT
2020-21
recoverable from a given date forward and interpretation of data upon which the
from known reservoirs and under defined estimating and auditing of Reserves information
economic conditions, operating methods, is predicated. Moreover, the methods and
and government regulations. Further it defines data used in estimating Reserves information
Developed Reserves as expected quantities to are often necessarily indirect or analogical in
be recovered from existing wells and facilities character rather than direct or deductive...”
and Undeveloped Reserves as the Quantities
“...the estimation of Reserves and other Reserves
expected to be recovered through future
information is an imprecise science because
significant investments.
of the many unknown geological and reservoir
Volumetric estimation is the main procedure in factors that can only be estimated through
estimation which uses reservoir rock and fluid sampling techniques. Reserves are therefore
properties to calculate hydrocarbons in-place only estimates, and they cannot be audited for
and then estimate that portion which will be the purpose of verifying exactness…”
recovered from it. As the field gets matured and
The Company uses the services of third party
reasonably good production history is available,
agencies for due diligence and it gets the
then performance methods such as material
reserves of its assets audited periodically by

Standalone Financial Statements

balance, simulation, decline curve analysis are
third party internationally reputed consultants
applied to get more accurate assessments.
who adopt latest industry practices for their
The annual revision of estimates is based on the evaluation.
yearly exploratory and development activities
(f) Defined benefit obligation (DBO)
and results thereof. New In-place Volume
and Estimated Ultimate Recovery (EUR) are Management’s estimate of the DBO is based
estimated for new field discoveries or new pool on a number of critical underlying assumptions
discoveries in already discovered fields. Revision such as standard rates of inflation, medical cost
of estimates are also due to Field growth which trends, mortality, discount rate and anticipation
includes delineation/appraisal activities and field of future salary increases. Variation in these
review/other exploratory efforts. Delineation/ assumptions may significantly impact the
appraisal activities lead to revision in estimates DBO amount and the annual defined benefit
due to new sub-surface data. Similarly, review expenses.
exercise is also carried out for old fields due
(g) Litigations
to necessity of revision in petro-physical
parameters, new seismic input, updating of static From time to time, the Company is subject to
and dynamic models and performance analysis legal proceedings and the ultimate outcome of
leading to change in Reserves. Intervention of each being always subject to many uncertainties
new technology, change in classifications and inherent in litigation. A provision for litigation is
contractual provisions also necessitate revision made when it is considered probable that a
in estimation of Reserves. payment will be made and the amount of the
loss can be reasonably estimated. Significant 283
As per Standards Pertaining to the Estimating
judgment is made when evaluating, among
and Auditing of Oil and Gas Reserves Information
other factors, the probability of unfavourable
(revised June 2019), approved by the SPE Board
outcome and the liability to make a reasonable
on June 25, 2019
estimate of the amount of potential loss.
“The reliability of Reserves information is Provision for litigations are reviewed at the end
considerably affected by several factors. Initially, of each accounting period and revisions made
it should be noted that Reserves information is for the changes in facts and circumstances.
imprecise as a result of the inherent uncertainties
in, and the limited nature of, the accumulation
 THE UNSTOPPABLE
ENERGY SOLDIERS
5. Oil and Gas Assets (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Gross cost (Note No. 5.1 & 5.2)
Opening balance 1,745,972.37 1,599,843.64
Transfer from Intangible Assets under Development – Exploratory Wells-in
9,311.15 9,158.45
Progress
Transfer from Development Wells-in-Progress 67,408.71 70,151.68
Increase/(decrease) in Decommissioning costs 5,346.04 (9,140.26)
Addition during the year 48,929.64 73,709.91
Acquisition Cost - 2,870.50
Deletion/Retirement during the year (26,230.34) (1,181.97)
Other adjustments 89.24 560.42
1,850,826.81 1,745,972.37
Less: Accumulated Depletion and Impairment
Accumulated Depletion
Opening balance 604,473.55 470,715.44
Provided for the year (Note No. 36) 117,877.70 134,333.67
Deletion/Retirement during the year (26,174.21) (254.53)
Other adjustments 23.54 (321.03)
696,200.58 604,473.55
Accumulated Impairment
Opening balance 56,731.99 7,950.63
Provided for the year 22,417.55 46,168.49
Write back of impairment (31,313.83) (1,118.41)
Reclassification - 3,731.28
47,835.71 56,731.99
Total 1,106,790.52 1,084,766.83

284

ONGC was ranked 11th among global energy majors in the

coveted Platt’s Top 250 Global Energy Company Rankings 2020
 ANNUAL REPORT
2020-21
5.1 The Company has elected to continue with Company received SRF fund of $ 33.81 million
the carrying value of its Oil and Gas Assets (`2,402.18 million) for Tapti Part-A facilities
recognised as of April 1, 2015 (transition date) and $ 598.24 million (`42,506.87 million) for
measured as per the Previous GAAP and used Panna Mukta fields from JV partners (including
that carrying value as its deemed cost as on the the Company share of 40% in the fields) and
transition date as per Para D7AA of Ind AS 101 acquired the corresponding decommissioning
except for decommissioning and restoration obligation with the conditions that Company
provision included in the cost of Oil and Gas will maintain separate dedicated SRF accounts
Assets which have been adjusted in terms of under SRF scheme, 1999 and extent guideline
para D21 of Ind AS 101 ‘First –time Adoption of of SRF, the Company will not utilise the fund of
Indian Accounting Standards’. dedicated SRF fund of Panna- Mukta Fields and
Tapti Part-A facilities for any other purpose, other
5.2 During the year 2016-17, Tapti A series facilities
than one defined under SRF scheme/guideline.
which were part of the assets of PMT Joint
Company will periodically carry out the re-
Operation (JO) and surrendered by the JO to
estimation of cost of abandonment of Panna-
the Government of India (GoI) as per the terms
Mukta Fields and Tapti Part-A facilities as per

Standalone Financial Statements

of JO agreement were transferred by GoI to
existing Company policy and contribute to SRF
the Company free of cost as its nominee and
account as per Company policy in nomination
recorded as a non-monetary grant. During
fields. In case, final actual cost of abandonment
the year 2019-20, the Company opted to
of facilities of Panna-Mukta fields at the time of
recognize the non-monetary government grant
physical abandonment is higher than approved
at nominal value and recorded the said facilities
abandonment cost plus the accumulated
at nominal value, in line with amendment in Ind
amount, Company will contribute the additional
AS 20 ‘Accounting for Government Grants and
amount required for abandonment. However, in
Disclosure of Government Assistance’ vide
case the actual cost at the time of abandonment
Companies (Indian Accounting Standards)
is less than the accumulated amount, the balance
Second Amendment Rules, 2018 (the ‘Rules’).
amount will be transferred to the Government of
These assets have been decapitalised / retired
India.
to the extent of the Company’s share in the Joint
Operation. 5.3 Union Cabinet, Government of India in its
meeting held on February 19, 2019, on reforms
Ministry of Petroleum and Natural Gas,
in Exploration and Licensing Policy for enhancing
Government of India (GoI) vide letter dated May
domestic exploration and production of oil and
31, 2019 assigned the Panna-Mukta fields w.e.f.
gas, directed to bid out identified marginal
December 22, 2019 on nomination basis to the
nomination fields operated by National Oil
Company on expiry of present PSC without any
Companies. In pursuance to decision of Union
cost to ensure continuity of operation. Being a
Cabinet, the Company offered 64 such marginal
non-monetary grant, the Company has recorded 285
fields which are clustered geographically in 17
these assets and grant at a nominal value.
contract areas for bidding under the supervision
Subsequent to assignment of Panna-Mukta of Directorate General of Hydrocarbons. The
field to the Company GoI has directed JV Company have notice of award for 49 marginal
partners of the PMT (Panna Mukta & Tapti) field fields covering 13 contract areas through
to transfer the existing SRF fund maintained the bidding process and signed contacts for
for decommissioning obligation for Tapti production enhancement for 21 marginal fields
Part A facility and Panna Mukta fields to the upto March 31, 2021 out of which the company
Company along with full financial and physical has handed over 3 fields to the contractors upto
liability of site restoration and abandonment of March 31, 2021 and impact of the same on the
Panna Mukta fields and Tapti Part A facilities. financial statements for the year ended March
Accordingly, in previous year 2019-20 the 31, 2021 is immaterial.
 THE UNSTOPPABLE
ENERGY SOLDIERS
6. Other Property, Plant and Equipment (` in million)
Carrying amount of:
As at March 31, 2021 As at March 31, 2020
(Note No. 6.1)
Freehold land 9,557.73 8,889.17
Perpetual lease land - -
Building and bunk houses 15,278.00 15,412.07
Plant and equipment 58,129.56 59,097.16
Furniture and fixtures 1,853.94 2,193.94
Office equipment 2,922.27 2,898.41
Vehicles, Ships & Boats 2,939.20 3,725.47
Total 90,680.70 92,216.22

(` in million)
Cost or deemed cost Freehold Perpetual Buildings Plant and Furniture Office Vehicles, Total
land lease land and bunk equipment and equipment Ships &
houses fixtures Boats
Balance at March 31, 2019 8,234.08 1,916.57 21,262.85 123,215.79 7,058.80 5,230.95 9,685.00 176,604.04
Additions 660.91 - 1,811.70 12,206.21 590.11 2,982.72 1,579.78 19,831.43
Disposals/ adjustments (5.82) (1,916.57) 52.38 1,130.50 (502.82) (627.28) (758.90) (2,628.51)
Balance at March 31, 2020 8,889.17 - 23,126.93 136,552.50 7,146.09 7,586.39 10,505.88 193,806.96
Additions 668.56 - 1,521.35 13,464.40 606.91 2,174.86 1,009.98 19,446.06
Disposals/ adjustments - - (24.12) (9,337.96) (488.49) (707.98) (1,502.08) (12,060.63)
Balance at March 31, 2021 9,557.73 - 24,624.16 140,678.94 7,264.51 9,053.27 10,013.78 201,192.39

(` in million)
Accumulated depreciation and Freehold Perpetual Buildings Plant and Furniture Office Vehicles, Total
impairment land lease land and bunk equipment and equipment Ships &
houses fixtures Boats
Balance at March 31, 2019 - - 5,927.30 60,751.93 4,137.79 3,340.43 6,011.45 80,168.90
Depreciation expense - - 1,733.71 14,650.23 1,172.81 1,853.58 1,523.01 20,933.34
Impairment loss recognised in profit
- - - 277.27 0.83 62.77 7.18 348.05
or loss
Eliminated on disposal / adjustments
- - 53.85 1,777.45 (359.25) (568.10) (761.23) 142.72
of assets
Impairment loss written back during
286 the year
- - - (1.54) (0.03) (0.70) - (2.27)

Balance at March 31, 2020 - - 7,714.86 77,455.34 4,952.15 4,687.98 6,780.41 101,590.74
Depreciation expense - - 1,621.47 13,451.90 863.99 2,006.30 1,796.67 19,740.33
Impairment loss recognised in profit
- - 13.59 48.30 1.74 118.15 0.28 182.06
or loss
Eliminated on disposal / adjustments
- - (3.76) (7,987.01) (401.97) (669.38) (1,499.02) (10,561.14)
of assets
Impairment loss written back during
- - - (419.15) (5.34) (12.05) (3.76) (440.30)
the year
Balance at March 31, 2021 - - 9,346.16 82,549.38 5,410.57 6,131.00 7,074.58 110,511.69
 ANNUAL REPORT
2020-21
a. Land includes 11 numbers (Previous year which were part of the assets of PMT Joint
2) amounting to `1,331.30 million (Previous Operation (JO) and surrendered by the JO to
year `1,322.28 million) for which execution of the Government of India (GoI) as per the terms
title deeds is in process. of JO agreement were transferred by GoI to the
Company free of cost as its nominee. During
b. Registration of title deeds in respect of
the year 2019-20, the Company opted to
6 numbers (Previous year 6) buildings is
recognize the non-monetary government grant
pending execution having carrying amount of
at nominal value and recorded the said facilities
`48.29 million (Previous year `51.22 million).
at nominal value, in line with amendment in Ind
c. Building includes cost of undivided interest in AS 20 ‘Accounting for Government Grants and
land. Disclosure of Government Assistance’ vide
Companies (Indian Accounting Standards)
6.1 The Company has elected to continue with
Second Amendment Rules, 2018 (the ‘Rules’).
the carrying value of its other Property Plant
These assets have been decapitalised / retired
& Equipment (PPE) recognised as of April 1,
to the extent of the Company’s share in the Joint
2015 (transition date) measured as per the
Operation.
Previous GAAP and used that carrying value

Standalone Financial Statements

as its deemed cost as on the transition date Ministry of Petroleum and Natural Gas,
as per Para D7AA of Ind AS 101 except for Government of India vide letter dated May 31,
decommissioning provision included in the cost 2019 has assigned the Panna-Mukta fields w.e.f.
of other Property, Plant and Equipment (PPE) December 22, 2019 on nomination basis to the
which has been adjusted in terms of para D21 Company on expiry of present PSC without any
of Ind AS 101 ‘First –time Adoption of Indian cost to ensure continuity of operation. Being a
Accounting Standards’. non-monetary grant, the Company has recorded
these assets and grant at a nominal value (refer
6.2 During the year 2016-17, Tapti A series facilities
Note No. 5.2).

287

A Floating Production, Storage and Offload vessel (FPSO) at

work in Mozambique where ONGC Videsh operates
 THE UNSTOPPABLE
ENERGY SOLDIERS
7. Right of Use (ROU) Assets (` in million)
Carrying amount of: As at March 31, 2021 As at March 31, 2020
Land 4,972.18 5,042.74
Buildings and bunk houses 91.49 227.59
Plant and equipment 73,414.90 75,380.24
Vehicles, Ships & Boats 28,875.33 17,547.35
Total 107,353.90 98,197.92

(` in million)
Cost Land Buildings Plant and Vehicles, Ships & Total
equipment Boats
Balance at April 1, 2019 488.77 264.42 80,390.57 14,250.26 95,394.02
(Note No. 7.1)
Additions 4,654.56 96.88 37,531.53 10,643.88 52,926.85
Disposals/ adjustments (10.11) - (6,748.12) (11.57) (6,769.80)
Balance at March 31, 2020 5,133.22 361.30 111,173.98 24,882.57 141,551.07
Additions - - 46,528.92 22,699.57 69,228.49
Disposals/ adjustments - - (12,055.44) (3.94) (12,059.38)
Balance at March 31, 2021 5,133.22 361.30 145,647.46 47,578.20 198,720.18

(` in million)
Accumulated depreciation Land Buildings Plant and Vehicles, Ships & Total
equipment Boats
Balance at April 1, 2019 - - - - -
Depreciation expense 100.59 133.71 39,815.79 7,345.08 47,395.17
Eliminated on disposal / adjustments (10.11) - (4,022.05) (9.86) (4,042.02)
of assets
Balance at March 31, 2020 90.48 133.71 35,793.74 7,335.22 43,353.15
Depreciation expense 70.56 136.10 41,691.42 11,371.59 53,269.67
Eliminated on disposal / adjustments - - (5,252.60) (3.94) (5,256.54)
288 of assets
Balance at March 31, 2021 161.04 269.81 72,232.56 18,702.87 91,366.28

7.1 Effective April 1, 2019, the Company has 7.2 Execution of conveyance deeds is in process
adopted Ind AS 116 “Leases”, applied to all in respect of 13 numbers (Previous year 14)
lease contracts existing on April 1, 2019 using lease hold lands amounting to `362.69 million
modified retrospective transition method. (Previous year `389.98 million).
 ANNUAL REPORT
2020-21
8. Capital Work-in-Progress (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
A) Oil and Gas Assets (Note No. 8.1)
(i) Development Wells in Progress
Opening balance 52,965.35 42,006.45
Expenditure during the year 54,594.00 63,595.04
Depreciation during the year 16,602.41 17,515.54
Less: Transfer to Oil and Gas Assets 67,408.71 70,151.68
56,753.05 52,965.35

Less: Impairment
Opening balance 3,744.97 2,045.33
Provided for the year 844.48 1,880.08
Written back during the year (2,806.83) (180.44)

Standalone Financial Statements

1,782.62 3,744.97
Total 54,970.43 49,220.38

(ii) Oil and Gas facilities in progress

Oil and Gas facilities 178,089.52 138,974.11
Acquisition Costs- Exploration and Production Asset 1,957.30 1,957.25
180,046.82 140,931.36
Less: Accumulated Impairment
Opening balance 6,884.68 4,975.77
Provided for the year 1,548.10 6,154.41
Written back during the year (1,576.41) (514.22)
Reclassification 553.65 (3,731.28)
7,410.02 6,884.68
Total 172,636.80 134,046.68

B) Other Capital Works-In-Progress

Buildings 1,702.77 1,432.10
Plant and equipment 17,381.03 13,427.90
Capital stores (including in transit) (Note No. 5.2 and 6.2) 2,532.23 3,694.68 289
Less: Impairment for Non-Moving Items 45.56 45.61
21,570.47 18,509.07
Less: Accumulated Impairment
Opening balance 1,610.37 1,510.39
For the year 10.43 135.19
Write back during the year (0.15) (24.53)
Reclassification (555.80) -
Other Adjustment - (10.68)
1,064.85 1,610.37
Total 20,505.62 16,898.70
 THE UNSTOPPABLE
ENERGY SOLDIERS
8.1 The Company has elected to continue with the except for decommissioning and restoration
carrying value of its Capital Works-in-Progress provision included in the cost of Capital Works-
recognised as of April 1, 2015 (transition date) in-Progress which have been adjusted in terms
measured as per the Previous GAAP and used of para D21 of Ind AS 101 ‘First –time Adoption
that carrying value as its deemed cost as on the of Indian Accounting Standards’.
transition date as per Para D7AA of Ind AS 101
9. Intangible Assets (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Application software
(Note No. 9.1)
Opening balance 3,642.13 3,016.74
Additions during the year 964.20 644.88
Adjustments (0.22) (19.49)
4,606.11 3,642.13
Less: Accumulated amortisation and impairment
Accumulated amortization
Opening balance 1,828.58 1,269.51
Provided for the year 600.91 578.17
Adjustment 0.33 (19.10)
2,429.82 1,828.58
Accumulated Impairment
Opening Balance 3.96 2.64
Provided for the year 1.58 1.36
Write back during the year (1.78) (0.04)
3.76 3.96
Total 2,172.53 1,809.59

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

10. Intangible Assets under Development (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

290 Exploratory Wells-In-Progress (Note No. 10.1)
Opening balance 194,213.76 214,383.44
Expenditure during the year 40,218.86 43,306.33
Less: Sale proceeds of Oil and Gas (net of levies) 44.71 40,174.15 287.15 43,019.18
Acquisition Cost 30.78 -
Depreciation during the year (Note No. 36) 17,779.48 15,891.23
252,198.17 273,293.85
Less:
Transfer to Oil and Gas Assets 9,311.15 9,158.45
Wells written off during the year 45,612.86 54,924.01 69,921.64 79,080.09
197,274.16 194,213.76
 ANNUAL REPORT
2020-21

Particulars As at March 31, 2021 As at March 31, 2020

Less : Impairment
Opening Balance 32,124.08 19,116.57
Provided during the year 10,144.90 16,915.56
Write back during the year (6,372.75) (3,908.05)
35,896.23 32,124.08
Total 161,377.93 162,089.68
10.1 During the year 2004-05, the Company and S1 Project facilities. One Gas well-U3B was
had acquired, 90% Participating Interest completed in the month of March 2020 and test
in Exploration Block KG-DWN-98/2 from production commenced on March 5, 2020. In
Cairn Energy India Limited for a lump sum line with the Accounting Policy of the Company,
consideration of `3,711.22 million which, Oil and Gas assets were created for the well
together with subsequent exploratory drilling U3B on establishment of proved developed
costs of wells had been capitalized under reserves during the year 2019-20. Commercial
exploratory wells in progress. During 2012- production from the well commenced on May

Standalone Financial Statements

13, the Company had acquired the remaining 25, 2020. The cost of development wells in
10% participating interest in the block from progress, Capital work in progress and Oil &
Cairn Energy India Limited on actual past cost gas assets as at March 31, 2021 is `27,326.51
basis for a consideration of `2,124.44 million. million (Previous year `23,567.70 million),
Initial in-place reserves were established in `75,468.01 million (Previous year `37,826.42
this block and adhering to original PSC time million) and `10,615.47 million (Previous
lines, a Declaration of commerciality (DOC) year `10,487.02 million) respectively under
with a conceptual cluster development plan Cluster II.
was submitted on December 21, 2009 for
FDP in respect of Cluster-I was approved for
Southern Discovery Area and on July 15,
development of Gas discoveries in E1 and
2010 for Northern Discovery Area. Thereafter,
integrated development of Oil discoveries in
in the revised DOC submitted in December,
F1 field along with nominated field GS-29 by
2013, Cluster-wise development of the Block
the Management Committee in FY 2019-20. E1
had been envisaged by division of entire
is now proposed to be developed along with
development area into three clusters.
cluster II facilities in Revised FDP. Drilling of an
The DOC in respect of Cluster II had been Appraisal cum Development Well GS29_8_A
reviewed by the Management Committee was commenced on March 29, 2021 under F1.
(MC) of the block on September 25, 2014. The cost of development wells in progress as
Field Development Plan (FDP) for Cluster-II at March 31, 2021 is `370.67 million.
was submitted on September 8, 2015 which
In respect of Cluster III, Directorate General
included cost of all exploratory wells drilled
of Hydrocarbon (DGH) vide letter dated 291
in the Contract Area and the same had been
December 24, 2019 has extended the timeline
approved by the Company Board on March
for submission of FDP by 25 months which
28, 2016 and by MC on March 31, 2016.
was further extended upto August 2022 vide
Investment decision has been approved by
letter dated November 16, 2020. In line with
the Company. Contracts for Subsea umbilical
the approval of Management Committee, one
risers, flow lines, Subsea production system,
appraisal well was drilled during 2020-21 and
Central processing platform – living quarter
one appraisal well is under drilling as on March
utility platform and Onshore Terminal have
31, 2021.
been awarded during 2018-19. Sixteen (16) Oil
wells, Seven (7) Gas wells and Six (6) Water In view of the definite plan for development of
injector wells were drilled upto March 31, 2021. all the clusters, the cost of exploratory wells in
Towards early monetization, it was planned to the block i.e. `53,323.75 million (Previous year
produce Gas from U-field utilizing Vashishta `52,998.53 million) has been carried over.
 THE UNSTOPPABLE
ENERGY SOLDIERS
11. Investments (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Investment in Equity Instruments (Note No. 11.1) 705,892.17 692,005.57
Investment in Preference Shares (Note No. 11.5) 233.90 220.69
Investment in Government securities (Note No. 11.6) 1,975.08 1,975.08
Other Investments (Note No. 11.7) 105,663.25 96,654.13
Total 813,764.40 790,855.47

11.1 Investments in Equity Instruments (` in million)

As at March 31, 2021 As at March 31, 2020

Particulars (No. in (No. in
Amount Amount
million) million)
(i) Investment in Subsidiaries (at Cost)
(Note No. 11.1.1)
Quoted – Fully paid up
(a) Hindustan Petroleum Corporation Limited
778.85 369,150.00 778.85 369,150.00
(Face Value `10 per share)
(b) Mangalore Refinery and Petrochemicals Limited
1,255.35 10,405.73 1,255.35 10,405.73
(Face Value `10 per share)
Unquoted – Fully paid up
(c) ONGC Videsh Limited
1,500.00 150,000.00 1,500.00 150,000.00
(Face Value `100 per share)
(d) ONGC Mangalore Petrochemicals Limited
(Face Value `10 per share) - - 1,246.65 13,119.84
(Note no. 11.1.2)
(e) Petronet MHB Limited
(Face Value `10 per share) 274.33 3,693.10 274.33 3,693.10
(Note no. 11.1.3)
Total Investment in Subsidiaries 533,248.83 546,368.67

(ii) Investment in Associates (at Cost)

(Note no. 11.1.1)
292 Quoted – Fully paid up
(a) Petronet LNG Limited
187.50 987.50 187.50 987.50
(Face Value `10 per share)
Unquoted – Fully paid up
(b) Pawan Hans Limited
(Face Value `10,000 per share) 0.27 2,731.66 0.27 2,731.66
(Note no. 11.1.7)
(c) Rohini Heliport Limited
(Face Value `10 per share) - 0.05 - 0.05
(Note no. 11.1.10)
Total Investment in Associates 3,719.21 3,719.21
 ANNUAL REPORT
2020-21
As at March 31, 2021 As at March 31, 2020
Particulars (No. in (No. in
Amount Amount
million) million)
(iii) Investment in Joint Venture (at Cost)
(Note no. 11.1.1)
Unquoted – Fully paid up
(a) Mangalore SEZ Limited
13.00 130.00 13.00 130.00
(Face Value `10 per share)
(b) ONGC Petro Additions Limited
(Face Value `10 per share) 997.98 9,979.81 997.98 9,979.81
(Note no. 11.1.4)
(c) ONGC Teri Biotech Limited
(Face Value `10 per share) 12.50 0.25 0.02 0.25
(Note no. 11.1.5)
(d) ONGC Tripura Power Company Limited
560.00 5,600.00 560.00 5,600.00
(Face Value `10 per share)
(e) Dahej SEZ Limited
23.02 230.25 23.02 230.25

Standalone Financial Statements

(Face Value `10 per share)
(f) Indradhanush Gas Grid Limited
(Face Value `10 per share) 61.00 610.00 12.00 120.00
(Note no. 11.1.8)
Total Investment in Joint Venture 16,550.31 16,060.31

(iv) Investment in other entities

(at FVTOCI)
Quoted – Fully paid up
(a) Indian Oil Corporation Limited
1,337.22 122,823.22 1,337.22 109,183.62
(Face Value `10 per share)
(b) GAIL (India) Limited
217.81 29,513.38 217.81 16,673.43
(Face Value `10 per share)
Unquoted – Fully paid up
(c) Indian Gas Exchange Limited
(Face Value `10 per share) 3.69 36.94 - -
(Note No. 11.1.11)
(at FVTPL)
Unquoted – Fully paid up
(d) Planys Technologies Private Limited
(Face Value `10 per share) - 0.27 - 0.32
(Note no. 11.1.6)
(e) String Bio Private Limited
(Face Value `10 per share) - - - - 293
(Note no. 11.1.9)
(f) Oil Spill Response Limited *
- 0.01 - 0.01
(Face Value `10 per share)
Total Investment in other entities 152,373.82 125,857.38
Total Investment in Equity Instruments 705,892.17 692,005.57

Aggregate carrying value of quoted investments 532,879.83 506,400.28

Aggregate carrying value of unquoted investments 173,012.34 185,605.29
Aggregate market value of quoted investments 425,868.23 340,421.86
Aggregate amount of impairment in value of investments - -
*100 nos. Equity Shares of Oil Spill Response Limited valued at GBP one each at the time of issuance. Total value in ` at the
time of issuance of shares was `6,885/-, further 200 nos. equity shares have also been allotted to the Company without any
consideration thereby the Company holds total 300 nos. equity shares.
 THE UNSTOPPABLE
ENERGY SOLDIERS
11.1.1 The Company has elected to continue at a premium of `25,430.00 per share. The
with the carrying value of its investments in equity shares have been fair valued during
subsidiaries, joint ventures and associates, the year at `26,937/- per equity share
measured as per the Previous GAAP and (Previous year `32,450/- per equity share).
used that carrying value on the transition
11.1.7. During the year 2018-19, the Company has
date April 1, 2015 in terms of Para D15 (b) (ii)
exercised option to exit Pawan Hans Limited
of Ind AS 101 ‘First –time Adoption of Indian
by offloading entire 49% stake holdings of
Accounting Standards’.
the Company as a preferred option, along
11.1.2. On January 01, 2021, the Company sold its with the strategic sale proposal being
entire holding (48.99 %) of 1,246,653,746 pursued by the Government of India. As at
nos. equity shares in its step down subsidiary March 31, 2021, the proposed strategic
company ONGC Mangalore Petrochemicals sale transaction is yet to be consummated
Limited, having face value `10 per share at as the buyer has not been identified. In view
a value of `9.76 per share to Mangalore of the uncertainty in the completion of the
Refinery & Petrochemicals Limited (MRPL), a transaction, the investment in Pawan Hans
subsidiary of the Company. (Please also refer Limited has not been classified as Non-
note no 11.7.4). current Asset Held for Sale and accordingly
the Company continues to classify Pawan
Further, the Board of subsidiary MRPL at their
Hans Limited as an Associate Company and
meeting held on June 10, 2021, has approved
carry the investment at Cost.
the scheme of amalgamation of ONGC
Mangalore Petrochemicals Limited (OMPL) 11.1.8. During the year, the Company has subscribed
subject to receipt of requisite approvals of additional 49,000,000 nos. equity share of
the Ministry of Corporate Affairs and that of Indradhanush Gas Grid Limited (IGGL), a
other concerned authorities and agencies, as Joint Venture Company having face value of
may be required, and subject to the approval `10 per share at par value. Total investment
of the shareholders and creditors by requisite in IGGL as at March 31, 2021 is `610.00
majority as required under the Companies million (Previous year `120.00 million).
Act, 2013.
11.1.9. During the year 2018-19, the Company had
11.1.3. Petronet MHB Limited is classified as a subscribed 1 no. equity shares of String Bio
subsidiary of the Company as it holds 49.99% Private Limited a startup Company, having
(Previous year 49.99%) ownership interest face value `10 per share at a premium of
and its subsidiary Hindustan Petroleum `267.30 per share.
Corporation Limited holds 49.99% (Previous
11.1.10.During the Previous year 2019-20, the
year 49.99%) ownership interest.
Company had subscribed 4,899 nos. equity
11.1.4. The Company is restrained from diluting shares of Rohini Heliport Limited having
the investment in the respective companies face value of `10 per share for an aggregate
294 till the sponsored loans are fully repaid as consideration of `0.05 million, classified as
per the covenants in the respective loan Associate Company.
agreements of the companies.
11.1.11.During the year, the Company has subscribed
11.1.5. During the year, the Company had received 3,693,750 nos. equity shares of Indian Gas
12,470,010 nos. equity shares from ONGC Exchange Limited (IGX) having face value of
Teri Biotech Limited as bonus shares. `10 per share for an aggregate consideration
of `36.94 million. The investment being a
11.1.6. During the year 2017-18, the Company had
strategic investment, the same is designated
subscribed 10 nos. equity shares of Planys
as fair valued through other comprehensive
Technologies Private Limited a startup
income (FVTOCI).
Company, having face value `10 per share
 ANNUAL REPORT
2020-21
11.2 Details of Subsidiaries
Proportion of ownership interest/
Place of incorporation and voting rights held by the Company
Name of subsidiary Principal activity
principal place of business As at March As at March
31, 2021 31, 2020
ONGC Videsh Limited Exploration and Incorporated in India having 100.00% 100.00%
Production activities all operation outside India
Mangalore Refinery and Refinery India 71.63% 71.63%
Petrochemicals Limited
Hindustan Petroleum Refining and Marketing India 53.64% 51.11%
Corporation Limited*
ONGC Mangalore Petrochemicals India - 48.99%
Petrochemicals Limited

Standalone Financial Statements

(Note No. 11.1.2)
Petronet MHB Limited (Note Multi products Pipeline India 49.99% 49.99%
No. 11.1.3)

* During the year Subsidiary Hindustan Petroleum Corporation Limited (HPCL) has executed buy-back program through Open
Market Operations and has bought back 71,801,491 nos. shares from persons other than promoters, representing 4.71% of
Share Capital (prior to commencement of buy-back), as on the reporting date, March 31, 2021. Out of this 67,977,038 nos.
shares have been extinguished as on the reporting date and rest on April 20, 2021. Considering the effect of subsequent
extinguishment as an adjusting event under Ind AS, Company’s shareholding in the subsidiary HPCL has increased from
51.11% as on March 31, 2020 to 53.64% as on March 31, 2021.

11.3 Details of Associates

Proportion of ownership interest/
Place of incorporation and voting rights held by the Company
Name of Associates Principal activity
principal place of business As at March As at March
31, 2021 31, 2020
Pawan Hans Limited Helicopter services India 49.00% 49.00%
Petronet LNG Limited* Liquefied Natural Gas India 12.50% 12.50%
supply
295
Rohini Heliport Limited Helicopter Services India 49.00% 49.00%

* Petronet LNG Limited (PLL) has been classified as an associate since the Company has significant influence on PLL.
 THE UNSTOPPABLE
ENERGY SOLDIERS
11.4 Details of Joint Ventures
Proportion of ownership interest/
Place of incorporation and voting rights held by the Company
Name of Joint Ventures Principal activity
principal place of business
As at March As at March
31, 2021 31, 2020
Mangalore SEZ Limited Special Economic Zone India 26.00% 26.00%
ONGC Petro Additions
Petrochemicals India 49.36% 49.36%
Limited
ONGC Teri Biotech Limited Bioremediation India 49.98% 49.98%
ONGC Tripura Power
Power Generation India 50.00% 50.00%
Company Limited
Dahej SEZ Limited Special Economic Zone India 50.00% 50.00%
Indradhanush Gas Grid
Pipeline India 20.00% 20.00%
Limited

11.5 Investments in Compulsory Convertible Preference Shares (` in million)

As at March 31, 2021 As at March 31, 2020
Particulars (No. in (No. in
Amount Amount
million) million)

Investment in Compulsory Convertible Preference Shares

(at FVTPL)
Unquoted – Fully paid up
(a) Planys Technologies Private Limited
(Face Value `1,500 per share) - 42.07 - 50.69
(Note No. 11.5.1)
(b) String Bio Private Limited
(Face Value `10 per share) 0.16 45.00 0.16 45.00
(Note No. 11.5.2)
(c) Chakr Innovation Private Limited
(Face Value `100 per share) - 30.96 - 30.00
296 (Note No. 11.5.3)
(d) Logicladder Technologies Private Limited
(Face Value `100 per share) 0.02 59.24 0.02 50.00
(Note No. 11.5.4)
(e) Sagar Defence Engineering Private Limited
(Face Value `10 per share) 0.01 56.63 0.01 45.00
(Note No. 11.5.5)
Total Investment in Preference Shares 233.90 220.69
Aggregate carrying value of unquoted investments 233.90 220.69
 ANNUAL REPORT
2020-21
11.5.1 During the year 2018-19, the Company The CCPS are Compulsory convertible into
had subscribed for additional 1,179 nos. equity shares upon the expiry of 20 years
Compulsory Convertible Preference Shares from the date of issue. The Company may,
(CCPS) of Planys Technologies Private at any time, prior to the expiry of 20 years
Limited (PTPL), a startup Company, having from the date of issue, issue a notice to the
face value of `1,500.00 per share at a SBPL for conversion of any CCPS into Equity
premium of `23,940.00 per share. The total Shares on 1:1 basis (i.e. for one CCPS, SBPL
number of CCPS subscribed by the Company shall issue one Equity Share) (“Conversion
as at March 31, 2019 is 1,562 CCPS. The Ratio”) subject to anti-dilution protection and
CCPS have been fair valued during the year upon receipt of such notice, SBPL shall be
at `26,937/- per CCPS (for the Previous year under an obligation to convert such CCPS
`32,450/- per CCPS). to the Equity Shares in accordance with the
conversion Ratio without the need to receive
The CCPS are Compulsory convertible into
any further consideration therefor.
equity shares upon the expiry of 19 years
from the date of issue. The Company may, at The CCPS bears a dividend, at the fixed rate

Standalone Financial Statements

any time, prior to the expiry of 19 years from of 0.001% of original issue price per CCPS on
the date of issue, irrespective of either the a cumulative basis compounded annually. In
Qualified IPO or Exit takes place or not, issue addition if a dividend is declared or paid on
a notice to the PTPL for conversion of any Equity Shares, an additional dividend shall
CCPS into Equity Shares on 1:1 basis (i.e. be declared or paid with respect that the
for one CCPS, PTPL shall issue one Equity holders of CCPS.
Share) (“Conversion Ratio”) at a pre-money
11.5.3. During the Previous year, the Company
valuation of `360.00 million subject to anti-
has subscribed 888 nos. Compulsory
dilution protection and upon receipt of such
Convertible Preference Shares (CCPS) of
notice, PTPL shall be under an obligation
Chakr Innovation Private Limited (CIPL) a
to convert such CCPS to the Equity Shares
startup Company, having face value of `100
in accordance with the conversion ratio
per share at a premium of `33,683.78 per
without the need to receive any further
share. The CCPS are Compulsory convertible
consideration therefor.
into equity shares upon the expiry of 20 years
The CCPS bears a cumulative dividend, at the from the date of issue, a notice to the CIPL for
fixed rate of 0.0001% or dividend that would conversion of any CCPS into Equity Shares
have been payable in a financial year on on 1:1 basis (i.e. for one CCPS, CIPL shall
Equity Shares that the holders of CCPS would issue one Equity Share) (“Conversion Ratio”)
have been entitled to on as-if-converted basis subject to anti-dilution protection and upon
i.e. Equity Shares arising from conversion receipt of such notice, CIPL shall be under an 297
of CCPS, whichever is higher. The dividend obligation to convert such CCPS to the Equity
amount on as-if-converted basis shall be Shares in accordance with the conversion
payable to holders of CCPS only if dividend ratio without the need to receive any further
has been declared on Equity Shares. consideration therefor. The CCPS bears a
dividend, at the cumulative coupon rate of
11.5.2. During the year 2018-19, the Company
0.001%. The CCPS have been fair valued
had subscribed 162,275 nos. Compulsory
during the year at `34,861/- per CCPS.
Convertible Preference Shares (CCPS) of
String Bio Private Limited (SBPL), a startup 11.5.4. During the year 2019-20, the Company
Company, having face value of `10 per has subscribed 19149 nos. Compulsory
share at a premium of `267.30 per share. Convertible Preference Shares (CCPS) of
 THE UNSTOPPABLE
ENERGY SOLDIERS
Logicladder Technologies Private Limited Convertible Preference Shares (CCPS) of
(LTPL) a startup Company, having face value Sagar Defence Engineering Private Limited
of `100 per share at a premium of `2,511.00 (SDEPL) a startup Company, having face
per share. The CCPS are Compulsory value of `10 per share at a premium
convertible into equity shares upon the of `3,545.00 per share. The CCPS are
expiry of 20 years from the date of issue a Compulsory convertible into equity shares
notice to the LTPL for conversion of any upon the expiry of 20 years from the date of
CCPS into Equity Shares on 1:1 basis (i.e. issue, a notice to the SDEPL for conversion of
for one CCPS, LTPL shall issue one Equity any CCPS into Equity Shares on 1:1 basis (i.e.
Share) (“Conversion Ratio”) subject to anti- for one CCPS, SDEPL shall issue one Equity
dilution protection and upon receipt of such Share) (“Conversion Ratio”) subject to anti-
notice, LTPL shall be under an obligation to dilution protection and upon receipt of such
convert such CCPS to the Equity Shares in notice, SDEPL shall be under an obligation
accordance with the conversion ratio without to convert such CCPS to the Equity Shares in
the need to receive any further consideration accordance with the conversion ratio without
therefor. The CCPS have been fair valued the need to receive any further consideration
during the year at `3,094/- per CCPS. therefor. The CCPS have been fair valued
during the year at `4,474/- per CCPS.
The CCPS bears a dividend, at the fixed rate
of 0.01% of original issue price per CCPS on The CCPS bears a dividend, at the fixed rate
a cumulative basis compounded annually. In of 0.01% of original issue price per CCPS on
addition if a dividend is declared or paid on a cumulative basis compounded annually. In
Equity Shares, an additional dividend shall addition if a dividend is declared or paid on
be declared or paid with respect that the Equity Shares, an additional dividend shall
holders of CCPS. be declared or paid with respect that the
holders of CCPS.
11.5.5. During the year 2019-20, the Company
has subscribed 12,658 nos. Compulsory

11.6 Investments in Government Securities (` in million)

As at March 31, 2021 As at March 31, 2020
Particulars
(No. in million) Amount (No. in million) Amount
Financial assets carried at amortized cost
(a) 8.40% Oil Co. GOI Special Bonds -2025
0.20 1,975.08 0.20 1,975.08
298 (Unquoted – Fully paid up)
Total Investment in Government or trust securities 1,975.08 1,975.08
Aggregate carrying value of unquoted investments 1,975.08 1,975.08
Aggregate amount of impairment in value of
- -
investments
 ANNUAL REPORT
2020-21
11.7 Other Investments (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

(No. in million) Amount (No. in million) Amount
(i) Deemed Investment in Subsidiaries
(a) Mangalore Refinery and Petrochemicals Limited 42.17 42.17
(Note No. 11.7.1 & 11.7.4)
(b) ONGC Videsh Limited (Note No. 11.7.2) 5,374.41 5,115.89
(c) ONGC Videsh Rovuma Limited (Note No. 11.7.3) 24.92 -
(d) ONGC Mangalore Petrochemicals Limited 4,193.61 4,193.61
(Note No. 11.7.4 & 52)
Total Deemed Investment in Subsidiaries 9,635.11 9,351.67
(ii) Deemed Investment in Joint Ventures
(a) ONGC Petro Additions Limited 62,378.55 62,361.96

Standalone Financial Statements

(Note No. 11.7.6 & 52)
Total Deemed Investment in Joint ventures 62,378.55 62,361.96
(iii) Subscription of Share Warrants -Joint ventures
(Unquoted – Partially paid up)
(a) ONGC Petro Additions Limited 3,451 33,649.59 2,558 24,940.50
(Note No. 11.7.5 & 11.7.6)
Total Investment - Share Warrants 33,649.59 24,940.50
Total other investments 105,663.25 96,654.13
Aggregate carrying value of investments 105,663.25 96,654.13
Aggregate amount of impairment in value of investment - -

11.7.1 The amount of `42.17 million (Previous consideration for the Company’s stepdown
year `42.17 million) denotes the fair value subsidiary ONGC Videsh Rovuma Limited.
of fees towards financial guarantee given
11.7.4. The Company along with its subsidiary
for Mangalore Refinery and Petrochemicals
Mangalore Refinery and Petrochemicals
Limited without any consideration.
Limited (MRPL) had entered into an
11.7.2. The amount of `5,374.41million (Previous arrangement during the year 2019-20, for
year `5,115.89 million) includes, (i) backstopping support towards repayment
`3,770.10 million (Previous year `3,511.58 of principal towards Compulsory Convertible 299
million) towards the fair value of guarantee Debentures (CCDs) amounting to `10,000.00
fee on financial guarantee given without million issued by ONGC Mangalore
any consideration for ONGC Videsh Limited Petrochemicals Limited (OMPL) and coupon
and (ii) `1,604.31 million (Previous year amount for three years. The backstopping
`1,604.31 million) towards fair value of support was provided by the Company along
interest free loan to ONGC Videsh Limited till with MRPL according to their respective
January 31, 2018. shareholding i.e. 49% by the Company and
51% by MRPL. Based on opinion of Expert
11.7.3. The amount of `24.92 million (Previous year
Advisory Committee (EAC) of the Institute
Nil) is towards the fair value of guarantee
of Chartered Accountants of India taken by
fee on financial guarantee given without any
 THE UNSTOPPABLE
ENERGY SOLDIERS
Subsidiary Company MRPL, the Company March 31, 2020 `1.89 million) towards the fair
has recognized a financial liability at fair value of guarantee fee on financial guarantee
value for its share of backstopping support given without any consideration for OMPL
towards repayment of principal and a financial (Also refer Note No. 52).
guarantee obligation towards coupon
11.7.5. During the year, the Company had
amount with a corresponding recognition of
subscribed to additional 893,240,000 nos.
Deemed Investment in stepdown Subsidiary
Share Warrants of ONGC Petro additions
OMPL. The Deemed Investment amount
Limited @ `9.75 per share warrant, entitling
of `4,193.61 million (As at March 31, 2020
the Company to exchange each warrant
`4193.61 million) includes, `4,191.71 million
with a Equity Share of Face Value of `10
(As at March 31, 2020 `4,191.71 million)
after a balance payment of `0.25 for each
towards the fair value of Financial Liability
share warrant within thirty six months of
against above CCDs and `1.89 million (As at
subscription of the Share warrants issued.

The position of share warrants subscribed by the Company in share warrants issued by OPaL is as under:

Subscribed amount
Value of share Execution /
No of warrants paid by the Company
Share warrants issued on warrants Conversion date of
subscribed (` in million)
(` in million) Warrants

August 25, 2015 1,922,000,000 19,220.00 18739.50 August 24, 2021

December 13, 2018 636,000,000 6,360.00 6,201.00 December 12, 2021
April 07, 2020 893,240,000 8,932.40 8,709.09 April 06, 2023

11.7.6. The Company entered into an arrangement Based on opinion of Expert Advisory
for backstopping support towards Committee (EAC) of the Institute of Chartered
repayment of principal and coupon of Accountants of India, as stated at refer
Compulsory Convertible Debentures (CCDs) Note No. 11.7.4 above, the Company has
amounting to `77,780.00 million (Previous recognized a financial liability at fair value for
year `77,780.00 million) issued by the Joint backstopping support towards repayment of
Venture ONGC Petro additions Limited principal and a financial guarantee obligation
(OPaL) in three tranches. The Company is towards coupon amount with a corresponding
continuing the same back stopping support. recognition of Deemed Investment in OPaL.
The outstanding interest accrued as at March
The Deemed Investment amount of
31, 2021 is `1,926.75 million (Previous year
300 `2,722.77 million). The first tranche and third
`62,378.55 million (As at March 31, 2020
`62,361.96 million) includes, `62,308.05
tranche of CCDs amounting to `56,150.00
million (As at March 31, 2020 `62,308.05
million and `4,920 million have been further
million) towards the fair value of Financial
extended for a period of 18 months and are
Liability against these CCDs and `70.50
due for maturity in July 2022 and September
million (As at March 31, 2020 `53.90
2022 respectively, while the second tranche
million) towards the fair value of guarantee
of CCD amounting to `16,710 million will be
fee on financial guarantee given without
due for maturity in November, 2021.
any consideration for OPaL (Also refer
Note No. 52).
 ANNUAL REPORT
2020-21

Standalone Financial Statements

301

Always prepared - ONGC regularly holds various safety and fire drills as part of Standard
Operating Practices
 302
11.8 The aggregate investments in each Subsidiary, Associates and Joint Ventures is as follows: (` in million)

ENERGY SOLDIERS
THE UNSTOPPABLE
ONGC
Mangalore ONGC Hindustan ONGC Mang- ONGC Indra-
Petronet Petronet Pawan Rohini ONGC Petro Tripura Dahej
ONGC Videsh Refinery and Mangalore Petroleum Videsh alore Teri dhanush
Name of entity MHB LNG Hans Heliport additions Power SEZ
Limited Petrochemicals Petrochemicals Corporation Rovuma SEZ Biotech Gas Grid
Limited Limited Limited Limited Limited Company Limited
Limited Limited Limited Ltd. Limited Limited Limited
Limited

Nature of entity Subsidiary Associate Joint Venture

As at March 31, 2021

Equity 150,000.00 10,405.73 - 369,150.00 3,693.10 - 987.50 2,731.66 0.05 9,979.81 5,600.00 130.00 0.25 230.25 610.00

Share warrants - - - - - - - - - 33,649.59 - - - - -

Deemed
5,374.41 42.17 4,193.61 - - 24.92 - - - 62,378.55 - - - - -
investment

Total 155,374.41 10,447.90 4,193.61 369,150.00 3,693.10 24.92 987.50 2,731.66 0.05 106,007.95 5,600.00 130.00 0.25 230.25 610.00

As at March 31, 2020

Equity 150,000.00 10,405.73 13,119.84 369,150.00 3,693.10 - 987.50 2,731.66 0.05 9,979.81 5,600.00 130.00 0.25 230.25 120.00

Share warrants - - - - - - - - - 24,940.50 - - - - -

Deemed
5,115.89 42.17 4,193.61 - - - - - - 62,361.96 - - - - -
investment

Total 155,115.89 10,447.90 17,313.45 369,150.00 3,693.10 - 987.50 2,731.66 0.05 97,282.27 5,600.00 130.00 0.25 230.25 120.00
 ANNUAL REPORT
2020-21
12. Trade receivables- Current (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
(a) Considered Good- Secured 1,591.46 1,300.28
(b) Considered Good- Unsecured (Note No. 12.2) 76,381.79 46,473.65
(c) Credit impaired (Note No. 12.3) 1,594.78 1,594.41
Less: Impairment for doubtful receivables 1,594.78 1,594.41
Total 77,973.25 47,773.93
12.1 Generally, the Company enters into long-term tariff in respect of UTNGPL as approved by
crude oil and gas sales arrangement with its Petroleum and Natural Gas Regulatory Board
customers. The normal credit period on sales (PNGRB) is being invoiced to GAIL with effect
of crude, gas and value added products is 7 from November 20, 2008. Maharashtra Gas
- 30 days. No interest is charged during this Limited (MGL), one of the customers of GAIL,
credit period. Thereafter, interest on delayed had filed a complaint with PNGRB on February
payments is charged at SBI Base rate plus 4% 12, 2015 regarding applicability of tariff on
- 6% per annum compounded each quarter on supply of gas to GAIL. After hearing all parties,

Standalone Financial Statements

the outstanding balance. PNGRB vide order dated October 15, 2015
dismissed the complaint and gave a verdict
Out of the gross trade receivables as at March
in favour of the Company. Pursuant to appeal
31, 2021, an amount of `64,894.62 million (as
by MGL to the Appellate Tribunal for Electricity
at March 31, 2020 `39,268.01 million) is due
(APTEL), the case was remanded back to
from Oil and Gas Marketing companies, the
PNGRB. Once again, PNGRB vide order dated
Company’s largest customers. There are no
March 18, 2020 had dismissed the complaint,
other customers who represent more than 5%
authorized the pipeline as a Common Carrier
of total balance of trade receivables.
Pipeline and directed both GAIL and MGL to
Accordingly, the Company assesses pay the transportation tariff fixed by PNGRB
impairment loss on dues from Oil Marketing from time to time for UTNGPL. MGL has again
Companies on facts and circumstances filed an appeal with APTEL on April 04, 2020
relevant to each transaction. against the order of PNGRB. Matter is presently
The Company has concentration of credit risk pending with APTEL.
due to the fact that the Company has significant Arbitration was invoked by another customer of
receivables from Oil and Gas Marketing GAIL which is presently pending with Ministry
Companies (refer Note No. 44.2.2, 44.3.2 & of Petroleum and Natural Gas, Government of
45.4). However, these companies are reputed India in terms of Administrative Mechanism for
and creditworthy public sector undertakings Resolution of CPSEs Disputes (AMRCD).
(PSUs).
The Company has been raising invoices on
12.2 Includes an amount of `3,755.22 million GAIL towards Pipeline Transportation Charges 303
(Previous year `3,129.05 million) due towards during the period from November 2008 to
Pipeline Transportation Charges for the period March 2021 amounting to `6,012.72 million,
from November 20, 2008 to March 31, 2021 out of this an amount of `2,257.50 million has
from GAIL India Limited (GAIL) on account of since been received. The Company has been
revised pipeline transportation tariff charges. receiving revised transportation tariff since
In terms of Gas Sales Agreement (GSA) signed November 20, 2008 from GAIL in respect of all
between GAIL and the Company, GAIL is to pay its customers other than MGL and also, from
transportation charges in addition to the price of the year 2016, in respect of the customer for
gas in case of Uran Trombay Natural Gas Pipe which matter is pending with AMRCD. In view
Line (UTNGPL) and were being paid by GAIL. of the same, the receivable of `3,755.22 million
Subsequent to the replacement of pipeline as at March 31, 2021 ( Previous year `3,129.05
in 2008, the revised pipeline transportation million) is considered good.
 THE UNSTOPPABLE
ENERGY SOLDIERS
12.3 Movement of Impairment for doubtful receivables (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Balance at beginning of the year 1,594.41 1,648.15
Addition 0.37 0.61
Write back during the year - (54.35)
Balance at end of the year 1,594.78 1,594.41

13. Loans (` in million)

As at March 31, 2021 As at March 31, 2020
Particulars
Non-current Current Non-current Current
(Unsecured, Considered Good unless Otherwise
Stated)
a. Deposits
- Considered Good 1,513.41 1,437.17 1,678.16 1,352.00
- Credit impaired 14.41 - 14.42 -
Less: Impairment for doubtful deposits 14.41 - 14.42 -
Total Deposits 1,513.41 1,437.17 1,678.16 1,352.00
b. Loans to Related Parties
- Receivables from Subsidiaries - 144.05 - -
Total Loan to Related Parties - 144.05 - -
c. Loans to Public Sector Undertakings
- Credit impaired 170.50 - 170.50 -
Less: Impairment for doubtful loans 170.50 - 170.50 -
Total Loans to Public Sector Undertakings - - - -
d. Loans to Employees
(Note no. 13.1)
- Secured, Considered Good 11,511.31 2,249.64 10,033.32 2,056.61
- Unsecured, Considered Good 249.35 3.88 113.27 1,708.65
- Credit impaired - 9.94 - 9.68
Less: Impairment for doubtful loans - 9.94 - 9.68
Total Loan to Employees 11,760.66 2,253.52 10,146.59 3,765.26
304
Total Loans 13,274.07 3,834.74 11,824.75 5,117.26

13.1 Loans to employees include an amount of `1.59 million (As at March 31, 2020 `1.85 million) outstanding
from Key Managerial Personnel.
13.2 Movement of Impairment for doubtful loans: (` in million)
Particulars Year ended March 31, 2021 Year ended March 31, 2020
Balance at beginning of the year 194.60 196.43
Recognized during the year 0.26 0.71
Write back during the year (0.01) (2.46)
Other adjustments - (0.08)
Balance at end of the year 194.85 194.60
 ANNUAL REPORT
2020-21
14. Deposits under Site Restoration Fund Scheme (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Deposits under site restoration fund scheme 233,586.78 221,522.23
233,586.78 221,522.23

14.1 The above amount has been deposited with cash and hence not considered as ‘Cash and
State Bank of India under section 33ABA of the cash equivalents’.
Income Tax Act, 1961 and can be withdrawn
14.2 Includes `2,522.07 million (Previous year
only for the purposes specified in the Scheme
`2,402.18 million) towards Tapti A Facilities and
i.e. towards removal of equipment and
`45,405.22 million (Previous year `42,506.87
installations in a manner agreed with Central
million) towards Panna Mukta Fields (refer Note
Government pursuant to an abandonment
No. 5.2, 6.2 and 24.3).
plan. This amount is considered as restricted

15. Financial assets - Others (` in million)

Standalone Financial Statements

Particulars As at March 31, 2021 As at March 31, 2020
Non-current Current Non-current Current
(Unsecured, Considered Good unless Otherwise Stated)
(a) Advance Recoverable in cash
- Considered Good (Note No. 15.1) 1,091.60 23,916.45 1,504.57 20,212.03
- Credit impaired (Note No. 15.2, 15.3 & 15.4) 416.87 14,333.27 223.05 21,225.89
Less: Impairment for doubtful advances 416.87 14,333.27 223.05 21,225.89

Total Advance Recoverable in cash 1,091.60 23,916.45 1,504.57 20,212.03

(b) Cash Call Receivable from JO Partners

- Considered Good - 4,051.99 - 4,803.06
- Credit impaired (Note No. 15.4) 6,345.47 - 5,696.71 -
Less: Impairment for doubtful cash call receivables 6,345.47 - 5,696.71 -
Total Cash Call Receivable from JO Partners - 4,051.99 - 4,803.06

(c) Interest Accrued on deposits and loans

- Considered Good - 177.94 - 871.34 305
- Credit impaired (Note No. 15.4) 22.87 - 22.87 -
Less: Impairment for doubtful receivables 22.87 - 22.87 -
Total Interest Accrued on deposits and loans - 177.94 - 871.34
(d) Others
- Considered Good 79.20 5,752.38 - 1,852.88
- Credit impaired (Note No. 15.4) - 0.10 - 0.10
Less: Impairment for doubtful receivables - 0.10 - 0.10

Total Others 79.20 5,752.38 - 1,852.88

Total financial assets-Others 1,170.80 33,898.76 1,504.57 27,739.31
 THE UNSTOPPABLE
ENERGY SOLDIERS
15.1 During the year 2010-11, the Oil Marketing and Natural Gas (MoP&NG), GoI. However,
Companies, nominees of the Government of according to a communication dated January
India (GoI) recovered US$ 80.18 million (Share 13, 2012, MoP&NG expressed the view that the
of the Company US$ 32.07 million (equivalent Company’s proposal would be examined when
to `2,356.82 million)) as per directives of GoI the issue of carry in Ravva PSC is decided in
in respect of Joint Operation - Panna Mukta its entirety by the Government along with other
and Tapti Production Sharing Contracts partners.
(PSCs). Pending finality by Arbitration Tribunal,
In view of the perceived uncertainties in obtaining
the company’s share of US$ 32.07 million
the refund at this stage, the impairment made
equivalent to `2,356.82 million (March 31,
in the books as above has been retained and
2020: `2,420.64 million) has been disclosed
netted off against the amount recoverable
under the head ‘Advance Recoverable in Cash’
as above in the Financial Statements for the
(refer Note No. 48.1.1 (d)).
year ending March 31, 2021. (Figures in ` are
15.2 In Ravva Joint Operation, the demand restated).
towards additional profit petroleum raised by
15.3 The Ravva PSC stipulates Base Development
Government of India (GoI), due to differences
Cost of Ravva JV to be at US$ 188.98 million
in interpretation of the provisions of the
with a cap of 5% increase. Accordingly the
Production Sharing Contract (PSC) in respect of
development cost stated in the PSC is US$
computation of Post Tax Rate of Return (PTRR),
198.43 million. However, actual cost incurred
based on the decision of the Malaysian High
by JV is more than amount stipulated in the
Court setting aside an earlier arbitral tribunal
PSC. Director General of Hydrocarbons did not
award in favor of operator, was disputed by
approve the increase in base development cost
the operator Vedanta Limited (erstwhile Cairn
for cost recovery and demanded additional
India Limited). The Company is not a party
profit petroleum vide letter dated August 8,
to the dispute but has agreed to abide by
2006 from the contractor / JV for an amount
the decision applicable to the operator. The
of US$ 166 million as short paid on account of
Company is carrying an amount of US$ 167.84
cost recovery of Development cost in excess of
million (equivalent to `12,334.91 million) after
Base Development Cost.
adjustments for interest and exchange rate
fluctuations which has been recovered by In August 2008 three JV partners excluding
GoI, this includes interest amounting to US$ ONGC had invoked arbitration against
54.88 million (`4,033.13 million). The Company Government of India (GoI) on the issue. The
has made impairment provision towards this contention of claim as operator was that it
recovery made by the GoI. should be allowed 100% Cost recovery of the
Base Development cost. The issue was argued
In subsequent legal proceedings, the Appellate
at various levels including court of Appeals
Authority of the Honorable Malaysian High
and Malaysian Federal Court. The decision of
Court of Kuala Lumpur had set aside the
306 decision of the Malaysian High Court and the
court was in favour of JV partners. After Federal
court of Malaysia decision, the case was filed
earlier decision of arbitral tribunal in favour
with Delhi High court for enforcement of award
of operator was restored, against which
in India. Delhi High Court vide order dated
the GoI has preferred an appeal before the
February 19, 2020 allowed enforcement of the
Federal Court of Malaysia. The Federal Court
Arbitration Award including declaratory relief.
of Malaysia, vide its order dated October 11,
GoI had filed an SLP in Honorable Supreme
2011, has dismissed the said appeal of the
Court of India against the said order and the
GoI.
judgment dated September 16.2020 was in
The Company has taken up the matter favour JV partner.
regarding refund of the recoveries made in
Ministry of Petroleum and Natural Gas
view of the favorable judgment of the Federal
(MoPNG), GoI vide letter dated October 10,
Court of Malaysia with Ministry of Petroleum
2018 issued a recovery notice to Oil Marketing
 ANNUAL REPORT
2020-21
companies (OMCs) for US$ 52 million plus million ($ 52 million along with interest of $31
applicable interest towards short payment million) (equivalent to `6,099.67 million) has
of Government share of Profit Petroleum on been recovered. In view of the Supreme Court
account of dispute of Cost recovery of Base Judgment for enforcement arbitration award
Development cost from the payments made in India, an amount of USD 33.94 million has
to the Company towards the sales proceeds been adjusted from profit petroleum payable to
of Crude Oil and Natural Gas. During the GoI during the year 2020-21 against the US$
year OMCs deducted and deposited the 83 million receivable from GoI. Balance amount
sales proceeds of Crude Oil and Natural Gas of US$ 49.06 million (equivalent to `3,605.30
to MoPNG and the entire amount of US$ 83 million) is considered good.

15.4 Movement of Impairment for financial assets-others (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Balance at beginning of the year 27,168.62 21,727.35
Recognized during the year 829.58 4,578.51

Standalone Financial Statements

Write back during the year (6,879.62) (67.02)
Other adjustments - 929.78
Balance at end of the year 21,118.58 27,168.62

307

We are deeply invested in inculcating Best Safety Practices in

our operations
 THE UNSTOPPABLE
ENERGY SOLDIERS
16. Other assets (` in million)
As at March 31, 2021 As at March 31, 2020
Particulars
Non-current Current Non-current Current

A. Capital advances
- Considered good 946.39 - 887.20 -
- Credit impaired 341.99 - 25.44 -
Less: Impairment 341.99 - 25.44 -
946.39 - 887.20 -

B. Others receivables
- Considered Good 61.95 - 1.49 -
- Credit impaired 408.42 - 469.45 -
Less: Impairment 408.42 - 469.45 -
61.95 - 1.49 -
C. Deposits
With Customs/Port Trusts etc. 0.05 28.93 - 31.28
With Others
- Considered Good 9,825.57 89,360.02 6,359.85 77,261.88
- Credit impaired 1,625.38 682.21 1,528.68 680.53
Less: Impairment 1,625.38 682.21 1,528.68 680.53
9,825.62 89,388.95 6,359.85 77,293.16
D. Advance recoverable
- Considered Good 901.79 24,907.40 686.65 16,569.48
- Credit impaired 642.72 961.54 589.62 1,335.96
Less: Impairment for receivables 642.72 961.54 589.62 1,335.96
901.79 24,907.40 686.65 16,569.48
E. Prepayments - Mobilization Charges - - - 8.97
F. Prepayments - lease land
183.07 1.15 184.23 9.35
(Note No. 7.2)
Total 11,918.82 114,297.50 8,119.42 93,880.96
308
 ANNUAL REPORT
2020-21
16.1 Movement of Impairment for other assets (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Balance at beginning of the year 4,629.68 3,686.00
Recognized during the year 462.06 993.17
Write back during the year (374.41) (217.89)
Other adjustments (55.07) 168.40
Balance at end of the year 4,662.26 4,629.68
17. Inventories (` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Raw Materials (Condensate) 1.64 2.32
Semi-finished goods (Note No. 32 & 33) 432.16 202.40
Finished Goods (Note No. 17.1, 17.2, 17.3, 32 & 33) 13,249.58 9,215.84
Stores and spares
(a) on hand 75,057.32 72,627.84

Standalone Financial Statements

(b) in transit 2,333.83 8,764.69
77,391.15 81,392.53
Less: Impairment for non- moving items 6,736.03 5,719.56
70,655.12 75,672.97
Unserviceable Items 406.21 572.70
Total 84,744.71 85,666.23

17.1 This includes an amount of `5.69 million (as the purpose of valuation of closing stock. This
at March 31, 2020 `5.50 million) in respect change in estimate of BS&W has resulted in
of 330,484 nos. (Previous year 330,484 an increase in the value of the closing stock of
nos.) Carbon Credits which are valued at net finished goods amounting to `172.51 million for
realisable value. There are no CERs under the year. This has an impact in future periods
certification. During the year `104.53 million also, estimation of which is impracticable.
(Previous year `82.20 million) and `28.19
17.4 COVID-19 outbreak conditions were existing
million (Previous year `32.12 million) have been
on the reporting date March 31, 2021, however
expensed towards Operating & maintenance
due to recovery of crude oil prices back
cost and depreciation respectively for emission
to normal, there is no impact of COVID-19
reduction equipment.
outbreak on the value of closing stock of
17.2 Inventory amounting to `268.55 million (as at inventory as at March 31, 2021. During the
March 31, 2020 `6,581.49 million) have been Previous year the price realized of inventory
valued at net realizable value of `99.51 million post reporting period provided evidence of the 309
(as at March 31, 2020 `4,046.04 million). Net realisable value of inventories at the end of
Consequently, an amount of `169.04 million (as the period. Accordingly, subsequent reduction
at March 31, 2020 `2,535.45 million) has been in selling prices were considered in arriving at
recognized as an expense in the Statement of the net realisable value as at March 31, 2020 as
Profit and Loss under Note No. 33. the condition of COVID-19 existed as at March
31, 2020 which had caused reduction in the
17.3 During the year, the company has excluded
selling prices, this had resulted in reduction in
the adjustment of Basic sediment and water
the value by `1,272.19 million as at March 31,
(BS&W) at certain storage locations, where
2020.
the BS&W is within the permissible limit, for
 THE UNSTOPPABLE
ENERGY SOLDIERS
18. Cash and Cash Equivalents (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Balances with Banks 1,197.84 956.47
Cash in Hand 2.30 3.78
1,200.14 960.25

19. Other Bank Balances (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Other Bank Deposits for original maturity more than 3 months upto 12
- 6,930.00
months (Note No. 19.1)
Unclaimed Dividend Account (Note No. 19.2) 310.11 264.50
Bank balance towards Dividend payment - 83.31
Deposits in Escrow Account (Note No. 19.3) 1,515.26 1,444.20
1,825.37 8,722.01

19.1 The deposits maintained by the Company with JO) nor the buyer of gas (GAIL) was paying any
banks comprise time deposit, which can be compensation to the Company for usage of its
withdrawn by the Company at any point without pipeline for gas transportation.
prior notice or penalty on the principal.
Hon’ble Gujarat High Court decided that the
19.2 Amount deposited in unclaimed dividend Panna Mukta oil fields from where the movement
account is earmarked for payment of dividend of goods is occasioned fall within the customs
and cannot be used for any other purpose. No frontiers of India. Consequently, the sale of
amount is due for deposit in Investor Education goods cannot be said to have taken place in
and Protection Fund. the course of import of goods into the territory
of India. Accordingly the Hon’ble Gujarat High
19.3 Matter of Dispute on Delivery Point of Panna-
Court has determined that the Delivery Point
Mukta gas between Government of India (GoI)
for Panna-Mukta gas is at Offshore. The State
and BG Exploration and Production India
Government of Gujarat has filed a petition with
Limited (BGEPIL) along with Reliance Industries
the Hon’ble Supreme Court of India against the
Limited (RIL) and the Company (PMT JO
decision of Hon’ble Gujarat High Court. Since
Partners) arose due to differing interpretation of
310 relevant PSC clauses. According to the PMT JO
the said matter of determination of delivery
point is pending with the Hon’ble Supreme
Partners, Delivery Point for Panna-Mukta gas is
Court of India, an amount of US $ 51.37 million
at Offshore, however, Ministry of Petroleum and
(Previous year US $ 48.67 million) equivalent
Natural Gas (MoP&NG), GoI and GAIL (India)
to `3,752.80 million (Previous year `3,653.19
Limited (GAIL) maintained that the delivery
million) for the PMT JO including Company’s
point is onshore at Hazira. The gas produced
Share US $ 20.74 million (Previous year US$
from Panna-Mukta fields was transported
19.24 million) equivalent to `1,515.26 million
through Company’s pipelines. Owing to the
(Previous year `1,444.20 million) is maintained
delivery point dispute neither the seller (PMT
in the escrow account by the PMT JO Partners.
 ANNUAL REPORT
2020-21
20. Equity Share Capital (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Equity Share Capital 62,901.39 62,901.54
62,901.39 62,901.54
Authorised:
30,000,000,000 Equity Shares of `5 each
(as at March 31, 2020: 30,000,000,000 Equity Shares of `5 each) 150,000.00 150,000.00
Issued and Subscribed:
12,580,279,206 Equity Shares of `5 each
(as at March 31, 2020: 12,580,317,150 Equity Shares of `5 each) 62,901.39 62,901.59
Fully paid equity shares:
12,580,279,206 Equity Shares of `5 each
(as at March 31, 2020: 12,580,279,206 Equity Shares of `5 each) 62,901.39 62,901.39
Add: Shares forfeited (Note No. 20.6) - 0.15

Standalone Financial Statements

Total 62,901.39 62,901.54

20.1 Reconciliation of equity shares outstanding at the beginning and at the end of the reporting period:
(` in million)

Particulars Number of shares in million Share capital

Balance at April 1, 2019 12,580.28 62,901.39
Changes during the year - -
Balance at April 1, 2020 12,580.28 62,901.39
Changes during the year - -
Balance at March 31, 2021 12,580.28 62,901.39

20.2 Terms / rights attached to equity shares 20.4 The Board of Directors of the Company, at
the 312th meeting held on December 20, 2018
The Company has only one class of equity
approved the proposal for buy-back of equity
shares having a par value of `5 per share.
shares of the Company upto 252,955,974 fully
Each holder of equity shares is entitled to one
paid-up equity shares at the price of `159/- per
vote per share. The dividend proposed by the
equity share payable in cash for an aggregate
Board of Directors is subject to the approval of
consideration not exceeding `40,220 million.
the shareholders in the ensuing Annual General
The buy-back offer worked out to 2.50% of
Meeting.
the net-worth of the Company as on March 311
In the event of liquidation of the Company, 31, 2017 and 2.34% as on March 31, 2018.
the holders of equity shares will be entitled to The Company has completed the buy-back
receive remaining assets of the Company, after of 252,955,974 fully paid-up equity shares on
distribution of all preferential amounts. The February 22, 2019.
distribution will be in proportion to the number
Upon completion of the buy-back in 2018-
of equity shares held by the shareholders.
19, the number of paid-up equity share
20.3 The Company had allotted 4,277,745,060 capital of the Company stands reduced
number of fully paid Bonus shares on December from 12,833,235,180 (`64,166.17 million) to
18, 2016 in the ratio of one equity share of `5 12,580,279,206 (`62,901.39 million).
each fully paid up for every two existing equity
shares of `5 each fully paid up.
 THE UNSTOPPABLE
ENERGY SOLDIERS
20.5 Details of shareholders holding more than 5% shares in the Company are as under:-

As at March 31, 2021 As at March 31, 2020

Name of equity share holders
No. in million % holding No. in million % holding
President of India 7,599.61 60.41 7,599.61 60.41
Life Insurance Corporation of India 1,367.36 10.87 1,192.19 9.48
Indian Oil Corporation Limited 986.89 7.84 986.89 7.84
20.6 During the year, 18,972 equity shares of `10 and accordingly the partly paidup amount of
each (equivalent to 37,944 equity shares of `5 `0.15 million against these shares have been
each) which were forfeited in the year 2006- transferred to the Capital Reserve.
07 were cancelled w.e.f. November 13, 2020

21. Other Equity (` in million)

Particulars As at March 31, 2021 As at March 31, 2020
Capital reserve 159.59 159.44
Capital redemption reserve 1,264.78 1,264.78
Reserve for equity instruments through other comprehensive income 103,483.58 78,961.70
General reserve 1,868,585.42 1,793,185.42
Retained Earnings 9,190.90 (5,524.85)
Total 1,982,684.27 1,868,046.49

312

The offshore supply base at Nhava is the lifeline of ONGC’s

offshore operations and played a critical role during the
pandemic to ensure uniterrupted operations
 ANNUAL REPORT
2020-21
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
A. Capital reserve
Balance at beginning of year (Note No. 21.1) 159.44 159.44
Add: Cancellation of forfeited shares (Note No. 20.6) 0.15 -
Balance at end of year 159.59 159.44
B. Capital redemption reserve
Balance at beginning of year 1,264.78 1,264.78
Movements - -
Balance at end of year 1,264.78 1,264.78
C. Reserve for equity instruments through other comprehensive income
(Note No. 21.2)

Standalone Financial Statements

Balance at beginning of year 78,961.70 200,699.21
Fair value gain/(loss) on investments in equity instruments 24,521.88 (121,737.51)
Balance at end of year 103,483.58 78,961.70
D. General Reserve (Note No. 21.3)
Balance at beginning of year 1,793,185.42 1,743,091.18
Add: Transfer from retained earnings 75,400.00 50,094.24
Balance at end of year 1,868,585.42 1,793,185.42
E. Retained Earnings
Balance at beginning of year (5,524.85) (2,844.68)
Profit after tax for the year 112,464.37 134,636.84
Add: Other comprehensive income arising from re-measurement of defined
(333.13) (2,871.57)
benefit obligation, net of income tax
Less: Payments of dividends (Note No. 21.4) 22,015.49 72,336.72
Less: Tax on Dividends - 12,014.48
Less: Transferred to general reserve 75,400.00 50,094.24
Balance at end of year 9,190.90 (5,524.85) 313
 THE UNSTOPPABLE
ENERGY SOLDIERS
21.1 Represent assessed value of assets received 21.4 The amount that can be distributed by
as gift. the Company as dividends to its equity
shareholders is determined considering the
21.2 The Company has elected to recognise
requirements of the Companies Act, 2013 and
changes in the fair value of certain investments in the dividend distribution policy of the Company.
equity securities through other comprehensive
income. This reserve represents the cumulative On February 13, 2021, the Company had
gains and losses arising on revaluation of equity declared an interim dividend of `1.75 per share
instruments measured at fair value through (35%) which has since been paid.
other comprehensive income. The Company In respect of the year ended March 31, 2021,
transfers amounts from this reserve to retained the Board of Directors has proposed a final
earnings when the relevant equity securities are dividend of `1.85 per share (37 %) be paid on
disposed off. fully paid-up equity shares. This final dividend
shall be subject to approval by shareholders at
21.3 General Reserve is used from time to time
the ensuing Annual General Meeting and has
to transfer profits from retained earnings for not been included as a liability in these financial
appropriation purposes, as the same is created statements. The proposed equity dividend
by transfer from one component of equity to is payable to all holders of fully paid equity
another. shares. The total estimated equity dividend to
be paid is `23,273.52 million.

22. Lease Liabilities (` in million)

As at March 31, 2021 As at March 31, 2020

Particulars
Non current Current Non current Current

Lease Liabilities (Note No. 41) 63,084.23 41,126.60 50,521.87 47,743.88

Total 63,084.23 41,126.60 50,521.87 47,743.88

22.1 Movement of Lease Liabilities (` in million)

Year ended Year ended

Particulars
March 31, 2021 March 31, 2021

Balance at beginning of the year 98,265.75 95,394.02

314 Recognized during the year 69,233.15 46,732.60

Unwinding of discount on lease liabilities 3,808.25 3,720.25

Payment during the year (58,524.82) (52,599.37)

Write back during the year (5,479.80) (14.04)

Revaluation of lease liabilities (3,577.27) 7,775.88

Effect of remeasurement / other adjustments 485.57 (2,743.59)

Balance at end of the year 104,210.83 98,265.75

 ANNUAL REPORT
2020-21
23. Other financial liabilities (` in million)
As at March 31, 2021 As at March 31, 2020
Particulars
Non current Current Non current Current
Deposits from suppliers and contractors 641.71 4,500.42 615.66 5,972.39
Financial Guarantee obligation
612.56 613.66 948.21 397.14
(Note No. 23.1 & 52)
Unclaimed Dividend (Note No. 23.2) - 310.11 - 264.50
Dividend payable - - - 83.31
Liability for Capital Goods - 22,977.39 - 29,372.15
Liability for Employees - 14,260.99 - 23,848.63
Liability for Post-Retirement Benefit Scheme - 248.95 - 2,850.53
Cash call payable to Joint Venture partners - 27,726.11 - 21,835.22

Standalone Financial Statements

Liquidated damages deducted from parties - 27,817.39 - 25,144.64
Interest accrued on borrowings - 1,219.78 - 262.93
Liability for Compulsory Convertible Debentures
62,548.65 16,203.56 4,208.28 74,769.96
(Note No. 52)
Other Liabilities - 23,201.13 - 29,589.67
Total 63,802.92 139,079.49 5,772.15 214,391.07

23.1 This represents the fair value of fee towards 23.2 No amount is due for deposit in Investor
financial guarantee issued on behalf of Education and Protection Fund.
subsidiaries and joint ventures, recognised
as financial guarantee obligation with
corresponding debit to deemed investment.
24. Provisions (` in million)
As at March 31, 2021 As at March 31, 2020
Particulars
Non current Current Non current Current
Provision for Employee benefits
(Note no. 42.9)
- For Post-Retirement Medical
and Terminal Benefits
51,067.93 2,418.78 49,038.85 2,305.08 315
- Gratuity for regular employees - 468.67 - -
- Gratuity for contingent employees 66.79 20.94 83.78 18.69
- Unavailed Leave and
- 6,988.67 - 3,342.14
compensated absences
Provision for Others (Note no. 24.1)
- Provision for decommissioning
221,298.70 3,908.91 199,938.32 4,471.87
(Note no. 24.2)
- Other Provisions (Note no. 24.3) 32,918.41 52.29 30,331.11 837.56
305,351.83 13,858.26 279,392.06 10,975.34
 THE UNSTOPPABLE
ENERGY SOLDIERS
24.1 Movement of Provision for Others (` in million)
Provision for decommissioning Other provisions
Particulars Year ended Year ended Year ended Year ended
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020

Balance at beginning of the year 204,410.19 198,994.53 31,168.67 836.51

Recognized during the year 4,568.27 3,124.83 2,510.29 30,321.94

Amount used during the year (444.49) (18,691.85) - -

Unwinding of discount 13,066.89 17,687.86 - -

Write back during the year (100.85) (2,467.25) (708.26) -

Effect of remeasurement / other adjustment 3,707.60 5,762.07 - 10.22

Balance at end of the year 225,207.61 204,410.19 32,970.70 31,168.67

24.2 The Company estimates provision for of long term production profile of the relevant
decommissioning as per the principles of Oil and Gas asset. The timing and amount
Ind AS 37 ‘Provisions, Contingent Liabilities of future expenditures are reviewed annually,
and Contingent Assets’ for the future together with rate of inflation for escalation of
decommissioning of Oil and Gas assets, wells current cost estimates and the interest rate
in progress etc. at the end of their economic used in discounting the cash flows.
lives. Most of these decommissioning
24.3 Includes `32,500.41 million (Previous year
activities would be in the future for which the
`29,990.12 million) accounted as provision
exact requirements that may have to be met
for contingency to the extent of excess of
when the removal events occur are uncertain.
accumulated balance in the SRF fund after
Technologies and costs for decommissioning
estimating the decommissioning provision of
are constantly changing. The timing and
Panna-Mukta fields and Tapti Part A facilities
amounts of future cash flows are subject to
as per the Company’s accounting policy (refer
significant uncertainty. The economic life of the
Note No. 5.2, 6.2 & 14.2).
Oil and Gas assets is estimated on the basis

25. Deferred Tax Liabilities (net)

316 The following is the analysis of deferred tax assets / (liabilities) presented in the Balance Sheet:
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Deferred tax liabilities 333,308.54 317,949.67
Less: Deferred tax assets 58,574.87 54,508.71
Total 274,733.67 263,440.96
 ANNUAL REPORT
2020-21
For FY 2020-21 (` in million)
Recognised Recognised in other
Opening Closing
Particulars in profit or comprehensive
balance balance
loss income
Deferred tax (liabilities) / assets in relation to:
Deferred Tax Assets
Unclaimed Exploratory Wells written off 30,750.95 938.63 - 31,689.58
Impairment/Expenses Disallowed Under Income Tax 15,043.15 3,156.19 - 18,199.34
Financial Assets 2,099.25 391.47 - 2,490.72
Intangible assets 1,256.61 (599.07) - 657.54
Defined benefit obligation 5,358.75 - 178.94 5,537.69
Total Deferred Tax Assets 54,508.71 3,887.22 178.94 58,574.87
Deferred Tax Liabilities
Property, plant and equipment 251,524.75 12,766.93 - 264,291.68
Exploratory wells in progress 44,680.66 1,716.85 - 46,397.51

Standalone Financial Statements

Development wells in progress 15,820.12 1,028.51 - 16,848.63
Intangible assets - - - -
Financial liabilities 3.82 18.35 - 22.17
Fair value gain on investments in equity shares at
4,016.34 - 1,957.66 5,974.00
FVTOCI
Others 1,903.98 (2,129.43) - (225.45)
Total Deferred Tax Liabilities 317,949.67 13,401.21 1,957.66 333,308.54
Deferred Tax Liabilities (Net) 263,440.96 9,513.99 1,778.72 274,733.67

For FY 2019-20 (` in million)

Recognised Recognised in other
Opening Closing
Particulars in profit or comprehensive
balance balance
loss income
Deferred tax (liabilities) / assets in relation to:
Deferred Tax Assets
Unclaimed Exploratory Wells written off 39,479.31 (8,728.36) - 30,750.95
Impairment/Expenses Disallowed Under Income Tax 15,886.15 (843.00) - 15,043.15
Financial Assets 1,756.56 342.69 - 2,099.25
Intangible assets 1,908.98 (652.37) - 1,256.61
Defined benefit obligation 3,816.32 - 1,542.43 5,358.75 317
Total Deferred Tax Assets 62,847.32 (9,881.04) 1,542.43 54,508.71
Deferred Tax Liabilities
Property, plant and equipment 256,896.20 (5,371.45) - 251,524.75
Exploratory wells in progress 54,228.78 (9,548.12) - 44,680.66
Development wells in progress 13,415.64 2,404.48 - 15,820.12
Intangible assets - - - -
Financial liabilities 12.62 (8.80) - 3.82
Fair value gain on investments in equity shares at
12,048.27 - (8,031.93) 4,016.34
FVTOCI
Others 506.89 1,397.09 - 1,903.98
Total Deferred Tax Liabilities 337,108.40 (11,126.80) (8,031.93) 317,949.67
Deferred Tax Liabilities (Net) 274,261.08 (1,245.76) (9,574.36) 263,440.96
 THE UNSTOPPABLE
ENERGY SOLDIERS
26. Other liabilities (` in million)
As at March 31, 2021 As at March 31, 2020
Particulars
Non-current Current Non-current Current
Advance from Customers - 1,268.45 - 1,419.73
Contract Liability-Advance MGO
256.74 28.67 256.74 47.97
(Note No. 26.2, 26.3 & 26.4)
Deferred government grant (Note No. 26.1) 116.40 - 78.60 -
Liability for Statutory Payments - 20,572.93 - 15,804.45
Other liabilities 30.16 1,318.84 52.54 1,390.91
Total 403.30 23,188.89 387.88 18,663.06

26.1 During the year 2016-17, assets, facilities and with amendment in Ind AS 20 ‘Accounting
inventory which were a part of the Tapti A series for Government Grants and Disclosure of
of PMT Joint Operation (JO) and surrendered Government Assistance’ vide Companies
by the JO to the Government of India as per (Indian Accounting Standards) Second
the terms and conditions of the JO Agreement Amendment Rules, 2018 (the ‘Rules’), during
and these assets, facilities and inventory were the year 2019-20 the Company had opted to
transferred by Government of India to the recognize the non-monetary government grant
Company free of cost as its nominee. In line at nominal value. (refer Note No. 5.2 & 6.2).

26.2 Revenue recognised that was included in the contract liability

(` in million)
For the year ended
Particulars
March 31, 2021 March 31, 2020
Natural gas 39.27 79.90

26.3 Transaction price allocated to the remaining performance obligations that are unsatisfied at the reporting
date:
(` in million)
As at March 31, 2021 As at March 31, 2020
Particulars Less than 12 More than 12 Less than 12 More than 12
Months Months Months Months
Natural gas 28.67 256.74 47.97 256.74
318
26.4 Significant changes in the contract liability balances during the year are as follows:
(` in million)
For the year ended
Particulars
March 31, 2021 March 31, 2020
Balance at the beginning of the year 304.71 344.16
Add: Amount received from customers during the year 60.82 69.11
Less: Minimum Guaranteed Offtake (MGO) refunded 40.85 28.66
Less: Revenue recognised during the year 39.27 79.90
Balance at the end of the year 285.41 304.71
 ANNUAL REPORT
2020-21
27. Borrowings (` in million)
As at March 31, 2021 As at March 31, 2020
Particulars
Non-current Current Non-current Current
Foreign currency Term Loans
- 30,135.68 - 84,990.35
(Note No. 27.1 & 27.2)
Working Capital Loans (Note No. 27.3) - 39,368.10 - 22,140.00
Non-Convertible Debenture (Note No. 27.4) 41,400.00 - - -
Less: Unamortised issue and other charges on Non-
(3.24) - - -
Convertible Debenture
Foreign Currency Bond (Note No. 27.5) 22,047.00 - 22,644.00 -
Less: Unamortised Discount and other charges on
(168.55) - (193.03) -
Foreign Currency Bond
Commercial Paper (Note No. 27.6) - 17,500.00 - 10,000.00

Standalone Financial Statements

Less: Unamortised Discount on Commercial Paper - (53.45) - (90.22)
Bank Overdraft - 1.10 - -
Total 63,275.21 86,951.43 22,450.97 117,040.13

27.1 The outstanding Foreign Currency Term Loans accordingly refinanced during July 2020 (US$
of US$ 1,126 million as on March 31, 2020 300.00 million) and December 2020 (US$
were due for repayment in July, 2020 for US$ 831.53 million) by availing foreign currency
300 million and in December, 2020 for US$ term loans from banks / institution. These loans
826 million. The outstanding loans have been have been partly repaid during the year.

27.2 The details of Foreign Currency Term Loans (FCTL) / Foreign Currency Non-Resident (Bank) Loans
(FCNR-B) outstanding:
As at March 31, 2021

Interest Rate p.a. (Payable

Sl. no. US$ in million ` in million Terms of Repayment
monthly)
1. 410.06 30,135.68 Upto December 9, 2021 1 Month LIBOR + 0.71 %

As at March 31, 2020 319

As at March 31, 2020
Sl. no. Terms of Repayment Interest Rate (Payable monthly)
US$ in million ` in million
1. 450.00 33,965.97 Upto December 26, 2020 1Month LIBOR + 1.00 %
2. 126.00 9,510.48 Upto December 26, 2020 1Month LIBOR + 0.99 %
3. 250.00 18,869.91 Upto December 29, 2020 1Month LIBOR + 0.99 %
Upto January 29, 2021 (with
4. 300.00 22,643.99 1Month LIBOR + 0.90 %
rollover due on July 30, 2020)
Total 1,126.00 84,990.35
 THE UNSTOPPABLE
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27.3 The Working Capital Loans outstanding:
As at March 31, 2021
Sl. no. ` in million Interest Rate p.a. (payable monthly)
1. 39,368.10 4.00%
As at March 31, 2020
Sl. No. ` in million Interest Rate p.a. (payable monthly)
1. 10,000.00 5.87%
2. 12,140.00 6.00%
Total 22,140.00
27.4 Details of Non-Convertible Debentures outstanding as at March 31, 2021:

` in million Interest Rate

Sl. no. Particulars Date of Issue Date of repayment
(at face value) p.a.
1 6.40% ONGC 2031 Series II August 11, 2020 April 11, 2031 10,000.00 6.40 %
2 5.25% ONGC 2025 Series I July 31, 2020 April 11, 2025 5,000.00 5.25 %
3 4.50% ONGC 2024 Series IV January 11, 2021 February 09, 2024 15,000.00 4.50 %
4 4.64% ONGC 2023 Series III October 21, 2020 November 21, 2023 11,400.00 4.64 %
Total 41,400.00
27.5 Details of Foreign Currency Bonds outstanding:
As at March 31, 2021
US$ in million Interest Rate p.a.
Sl. no. Date of Issue Date of repayment ` in million
(at face value) (payable half yearly)
1. December 05, 2019 December 05, 2029 300.00 22,047.00 3.375 %
As at March 31, 2020
US$ in million Interest Rate p.a.
Sl. no. Date of Issue Date of repayment ` in million
(at face value) (payable half yearly)
1. December 05, 2019 December 05, 2029 300.00 22,644.00 3.375 %
27.6 Details of Commercial Papers outstanding:

320 As at March 31, 2021

US$ in million Interest Rate p.a.
Sl. no. Date of Issue Date of repayment
(at face value) (payable half yearly)
1. February 17, 2021 May 11, 2021 10,000.00 3.42%
2. March 01, 2021 April 26, 2021 7,500.00 3.18%
Total 17,500.00
As at March 31, 2020
US$ in million Interest Rate p.a.
Sl. no. Date of Issue Date of repayment
(at face value) (payable half yearly)
1. March 06, 2020 June 02, 2020 10,000.00 5.38%
Total 10,000.00
 ANNUAL REPORT
2020-21
28. Trade payables
28.1 Trade payables- Micro and Small Enterprises* (` in million)

As at March 31, As at March 31,

Particulars
2021 2020

a) Principal & Interest amount remaining unpaid but not due as at year end 1,475.10 132.07

b) Interest paid by the Company in terms of Section 16 of The Micro, Small and
Medium Enterprises Development Act, 2006, along with the amount of the - -
payment made to the supplier beyond the appointed day during the year.
c) Interest due and payable for the period of delay in making payment (which
have been paid but beyond the appointed day during the year) but without
- -
adding the interest specified under The Micro, Small and Medium Enterprises
Development Act, 2006.
d) Interest accrued and remaining unpaid as at year end. - -

Standalone Financial Statements

e) Further interest remaining due and payable even in the succeeding years,
until such date when the interest dues as above is actually paid to the small - -
enterprise.
* Micro and Small enterprises status based on the confirmation from Vendors.

28.2 Trade payables - other than micro and small enterprises (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Trade payable (Note No. 28.3) 62,291.38 71,004.20
Total 62,291.38 71,004.20
28.3 Payment towards trade payables is made as per the terms and conditions of the contract / purchase
orders. Generally, the average credit period on purchases is 21 days.
29. Tax Assets / liabilities (Net)

(a) Non-Current Tax Assets (Net) (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Non- Current tax assets (Net) 76,558.02 90,430.66
321
Total 76,558.02 90,430.66

(b) Current Tax Liabilities (Net) (` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Current Tax Liabilities (Net) 327.82 499.38
Total 327.82 499.38
 THE UNSTOPPABLE
ENERGY SOLDIERS
30. Revenue from Operations (` in million)
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
A. Sale of Products
Own Products (including excise duty) (Note No. 30.1, 30.2 &
694,425.30 975,095.97
30.3)
Less: Transfer to Exploratory Wells in progress (includes levies) 51.74 324.03
Less: Government of India's (GoI's) share in Profit Petroleum 15,464.60 17,757.88
678,908.96 957,014.06
B. Other Operating Revenue
Contractual Short Lifted Gas Receipts 104.49 254.67
Pipeline Transportation Receipts 214.83 352.03
North-East Gas Subsidy (Note No. 30.2) 1,395.33 2,295.85
Surplus from Gas Pool Account - 1,308.20
Production Bonus 132.92 -
Sale of Electricity 635.17 668.38
Processing Charges 19.20 242.90
2,501.94 5,122.03
Total 681,410.90 962,136.09

30.1 Sales revenue in respect of Crude Oil produced 2020 to September 30, 2020 and October 01,
from nomination blocks is based on pricing 2020 to March 31, 2021 respectively in terms of
formula provided in Crude Oil Sales Agreements “New Domestic Natural Gas Pricing Guidelines,
(COSAs) signed with Buyer refineries. COSAs 2014”. For consumers in North-East (upto
with Indian Oil Corporation Limited (IOCL), Govt. allocation), consumer price is 60% of the
Hindustan Petroleum Corporation Limited domestic gas price and the difference between
(HPCL), Bharat Petroleum Corporation Limited domestic gas price and consumer price is
(BPCL), Chennai Petroleum Corporation Limited paid to the Company through GoI Budget and
(CPCL) which were valid till March 31, 2018 and classified as ‘North-East Gas Subsidy’.
have been extended provisionally from time
30.3 LPG produced by the Company is presently
to time presently till March 31, 2021. COSA
being sold as per guideline issued by
with Mangalore Refinery and Petrochemicals
MoP&NG to PSU Oil Marketing Companies
Limited (MRPL) has been signed and effective
(OMCs), as per provision of Memorandum of
from April 01, 2018, is valid for 5 years.
Understanding (MOU) dated March 31, 2002
322 For Crude Oil produced in North East Region, signed by the Company with OMCs which was
Sales revenue in respect of Crude oil supplied to valid for a period of 2 years or till the same
IOCL is based on the pricing formula provided is replaced by a bilateral agreement or on its
in COSA signed with IOCL effective from April termination.
01, 2018, is valid for 5 years and to Numaligarh
Value Added Products other than LPG are
Refinery Limited (NRL) is based on pricing
sold to different customers at prices agreed in
formula provided by Ministry of Petroleum and
respective Term sheets / Agreements entered
Natural Gas (MoP&NG) respectively.
into between the parties.
30.2 Majority of Sales revenue in respect of Natural
30.4 Oil, Gas and Petroleum Products are declared
Gas is based on domestic gas price of US$
as essential services by Government of India
2.39/mmbtu and US$ 1.79 /mmbtu (on GCV
during lockdown due to COVID-19 pandemic.
basis) notified by GoI for the period April 01,
Since, India has import dependency of more
 ANNUAL REPORT
2020-21
than 80% in case of crude and around 50% The outbreak of COVID-19 globally and resultant
in case of natural gas/ LNG, no significant lockdown in many countries, including India
impact was observed on Company’s existing has impacted the business of the Company.
production of crude oil and natural gas during The revenue for the year ended March 31, 2021
the year due to reduction in global demand. The are impacted by low crude oil and natural gas
crude oil produced by the Company is allocated prices due to the COVID-19 pandemic and
by Government to PSU Refineries. Similarly, volatile global crude oil and natural gas markets.
majority of gas produced by the Company is Accordingly, the same are not comparable with
allocated by Government to priority sectors like those for the previous year.
Power, Fertilizer, City Gas Distribution etc. The
The management has assessed the possible
Company continued producing and supplying
impact of continuing COVID-19 on the basis of
crude oil and natural gas to its customers
internal and external sources of information and
during lockdown period. Offtake of crude oil by
expects no significant impact on the continuity
Refineries was not affected during the lockdown
of operations, useful life of Property Plant and
period. Few Gas customers had served notices
Equipment, recoverability of assets, trade
of Force majeure on the Company due to lock
receivables etc., and the financial position of

Standalone Financial Statements

down restrictions causing marginal reduction in
the Company on a long term basis.
Gas sales which is not material.
31.4 Details of Sales Revenue
(` in million)
Year ended March 31, 2021 Year ended March 31, 2020
Product Unit
Quantity Value Quantity Value
Crude Oil * MT 20,713,745 493,267.36 21,340,755 664,482.00
Less: From Exploratory Wells in
1,925 43.67 3,222 86.33
progress
Less: Government of India's share in
13,885.68 16,032.53
Profit Petroleum
479,338.01 648,363.14
Natural Gas * 000M 3 17,694,219 115,803.19 19,423,386 195,518.93
Less: From Exploratory Wells in
503 8.07 22,054 237.70
progress
Less: Government of India's share in
1,578.92 1,725.35
Profit Petroleum
114,216.20 193,555.88
Liquefied Petroleum Gas MT 1,010,885 31,972.90 1,011,323 36,037.83
Naphtha MT 914,809 26,080.90 1,177,420 39,863.10 323
Ethane-Propane MT 241,299 4,962.80 345,536 8,155.41
Ethane MT 483,236 9,740.78 535,391 12,936.88
Propane MT 183,086 6,051.40 219,328 7,251.22
Butane MT 97,467 3,207.00 124,908 4,207.74
Superior Kerosene Oil MT 32,465 837.05 54,802 2,465.03
LSHS MT 24,623 537.56 27,727 746.55
HSD MT 25,788 1,530.89 42,111 2,390.04
Aviation Turbine Fuel (ATF) MT 10,177 335.83 18,233 889.26
MTO MT 3,424 97.44 3,389 151.98
Others 0.20 -
Total 678,908.96 957,014.06
* Quantity includes share from Joint Operations as per the Participating interest and / or Entitlement interest, whichever is applicable.
 THE UNSTOPPABLE
ENERGY SOLDIERS
31. Other Income (` in million)

Year ended Year ended

Particulars
March 31, 2021 March 31, 2020
Interest on:
Deposits with Banks 91.55 902.34
Income Tax Refund 819.60 289.64
Delayed Payment from Customers and Others 177.40 240.96
Financial assets (measured at amortized cost)
- Site Restoration Fund Deposit 8,973.21 10,459.21
- Employee loans 1,195.43 1,119.32
- Other Investments 165.79 165.79
- Others 7.60 11.52

11,430.58 13,188.78
Dividend Income from:
Investment in Subsidiaries, Associates and Joint Ventures 15,500.24 16,055.50
Investments in Mutual funds - 1.47
Other Investments (FVTOCI) 15,129.81 8,607.13
30,630.05 24,664.10
Other Non-Operating Income
Excess decommissioning provision written back 100.85 2,467.25
Excess provision written back - Others 8,140.72 629.28
Liabilities no longer required written back 1,391.93 1,288.44
Contractual Receipts 954.81 954.26
Profit on sale of assets 1.04 -
Amortization of financial guarantee obligation (Note No. 52.5.3) 419.18 424.60
Gain on fair valuation of financial instruments 58.61 25.31
Gain on revaluation of financial liability towards CCDs
4,659.61 5,038.27
(Note No. 52.5.3)
324 Exchange Gain (Net) 7,785.02 -
Miscellaneous Receipts 5,852.67 17,421.36
29,364.44 28,248.77
Total 71,425.07 66,101.65
32. Changes in inventories of finished goods and work in progress (` in million)

Year ended Year ended

Particulars
March 31, 2021 March 31, 2020
Closing Stock 13,681.74 9,418.24
Opening Stock 9,418.24 11,888.17
(Increase)/decrease in inventories (4,263.50) 2,469.93
 ANNUAL REPORT
2020-21
33. Details of opening and closing inventories of finished goods and work in progress (` in million)

As at March 31, 2021 As at March 31, 2020

Particulars Unit
Quantity Value Quantity Value
Opening stock
Crude Oil* MT 952,782 8,817.64 910,532 10,969.42
Liquefied Petroleum Gas MT 9,522 83.37 7,575 72.26
Naphtha MT 35,801 182.75 99,760 500.30
Ethane/Propane MT 341 4.65 762 8.83
Superior Kerosene Oil MT 4,859 18.61 9,489 42.60
Aviation Turbine Fuel MT 4,515 40.66 3,482 28.23
Low Sulphur Heavy Stock MT 991 14.31 2,307 56.49
High Speed Diesel MT 6,247 179.44 8,032 164.63

Standalone Financial Statements

Ethane MT 1,245 20.18 455 6.79
Propane MT 571 9.07 243 6.28
Butane MT 348 6.64 199 6.15
Mineral Turpentine Oil MT 281 3.46 312 7.64
Carbon Credits Units 330,484 5.50 115,093 1.79
Others 31.96 16.76
9,418.24 11,888.17
Closing stock
Crude Oil* MT 1,050,140 12,793.51 952,782 8,817.64
Liquefied Petroleum Gas MT 12,578 147.63 9,522 83.37
Naphtha MT 60,715 382.89 35,801 182.75
Ethane-Propane MT 674 8.55 341 4.65
Superior Kerosene Oil MT 5,309 23.83 4,859 18.61
Aviation Turbine Fuel MT 5,145 41.44 4,515 40.66
Low Sulphur Heavy Stock MT 1,580 37.66 991 14.31
High Speed Diesel MT 4,459 204.26 6,247 179.44
Ethane MT 796 9.77 1,245 20.18 325
Propane MT 425 10.71 571 9.07
Butane MT 376 10.73 348 6.64
Mineral Turpentine Oil MT 83 1.98 281 3.46
Carbon Credits Units 330,484 5.69 330,484 5.50
Others 3.09 31.96
Total 13,681.74 9,418.24

*Includes Company’s share in stock of Joint Operations.

 THE UNSTOPPABLE
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34. Production, Transportation, Selling and Distribution Expenditure (` in million)

Year ended Year ended

Particulars
March 31, 2021 March 31, 2020
Royalty 81,353.57 115,075.55
OIDB Cess 80,187.49 107,877.64
National Calamity Contingent Duty 989.46 1,019.92
Excise Duty 539.08 477.67
Port Trust Charges 432.73 346.59
Other Levies 734.43 910.66
Staff Expenditure 23,072.52 25,203.35
Workover Operations 15,425.72 14,466.64
Water Injection, Desalting and Demulsification 10,233.97 12,153.51
Consumption of Raw materials, Stores and Spares 19,807.30 25,881.17
Pollution Control 2,222.76 2,780.29
Transport Expenditure 3,185.21 3,581.92
Insurance 1,189.55 1,006.68
Power and Fuel 3,013.04 3,467.99
Repairs and Maintenance 18,520.98 22,612.57
Contractual payments including Hire charges etc. 15,709.86 18,407.34
Other Production Expenditure 9,456.42 10,628.13
Transportation and Freight of Products 12,410.32 13,744.01
Research and Development 5,541.30 5,557.73
General Administrative Expenditure 34,918.97 40,225.14
CSR expenditure (Note No. 34.2) 5,387.72 6,069.69
Exchange Loss (Net) (Note No. 35.1) - 16,771.71
Miscellaneous Expenditure (Note No. 34.3) 6,933.81 8,556.13
Loss on fair valuation of financial instruments 1,538.47 1,498.24
Loss on sale of Investment (Note No. 11.1.2) 956.81 -
Total 353,761.49 458,320.27
34.1 Details of Nature wise Expenditure (` in million)
326
Year ended Year ended
Particular
March 31, 2021 March 31, 2020
Employee Benefit Expenses
(a) Salaries, Wages, Ex-gratia etc. 75,413.88 85,186.27
(b) Contribution to Provident and other funds 9,558.50 12,918.38
(c) Provision for gratuity 787.54 619.41
(d) Provision for Leave (Including Compensatory Absence) 6,977.91 3,511.14
(e) Post Retirement Medical & Terminal Benefits 4,898.99 8,916.18
(f) Staff welfare expenditure 3,628.58 3,972.83
Sub Total: 101,265.40 115,124.21
 ANNUAL REPORT
2020-21

Year ended Year ended

Particular
March 31, 2021 March 31, 2020
Consumption of Raw materials, Stores and Spares 66,647.78 76,549.10
Royalty 81,353.57 115,075.55
OIDB Cess 80,187.49 107,877.64
National Calamity Contingent Duty 989.46 1,019.92
Excise Duty 539.08 477.67
Port Trust Charges 432.73 346.59
Other Levies 734.43 910.66
Rent 3,949.62 2,970.53
Rates and taxes 421.40 296.10
Hire charges of equipments and vehicles 32,164.33 37,960.06
Power, fuel and water charges 5,064.86 5,367.48
Contractual drilling, logging, workover etc. 56,073.67 63,050.95

Standalone Financial Statements

Contractual security 8,703.58 8,509.84
Repairs to building 1,137.18 1,111.35
Repairs to plant and equipment 12,816.57 12,225.50
Other repairs 2,711.31 2,417.49
Insurance 2,041.10 1,810.73
Expenditure on Tour / Travel 1,685.87 4,329.88
CSR expenditure (Note No. 34.2) 5,387.72 6,069.69
Exchange Loss (Net) (Note No. 35.1) - 16,771.71
Miscellaneous expenditure (Note No. 34.3) 10,461.81 11,873.32
474,768.96 592,145.97
Less:
Allocated to exploration, development drilling, capital jobs, recoverables etc. 121,007.47 133,825.70
Production, Transportation, Selling and Distribution Expenditure 353,761.49 458,320.27
34.2 CSR Expenditure:
34.2.1Break-up of various heads of CSR expenditure (` in million)

Year ended Year ended

Sl. No. Heads of Expenditure
March 31, 2021 March 31, 2020
i. Promoting Education 824.97 1,552.57 327
ii. Promoting Health Care 649.29 1,039.56
iii. Empowerment of Socially and Economically Backward groups 21.90 60.04
iv. Promotion of Nationally recognized and Para-Olympic Sports 65.23 35.82
v Imparting Employment by Enhancing Vocational Skills 56.41 402.86
vi. Swachh Bharat Abhiyaan 30.46 220.90
vii Environment Sustainability 131.92 614.50
viii PM CARES Fund 3,000.00 -
ix. Others 750.56 2,143.44
Total 5,530.74 6,069.69
 THE UNSTOPPABLE
ENERGY SOLDIERS
34.2.2 The CSR expenditure comprises the following:
(a) Gross amount required to be spent by the Company during the year `5,387.72 million (Previous year
`5,718.14 million) as against the budget approved by the Board of `5,387.72 million (Previous year
`5,718.14 million).
(b) Amount spent during the year on: (` in million)
Year ended March 31, 2021 Year ended March 31, 2020
Sl. Yet to be Yet to be
Particulars
No. In Cash paid in Total In Cash paid in Total
cash cash
Construction/acquisition of any
i. - - - - - -
asset
ii. On purpose other than (i) above 5,391.17 139.57 5,530.74 5,809.48 260.21 6,069.69
Total 5,391.17 139.57 5,530.74 5,809.48 260.21 6,069.69
(c) Contribution to ONGC Foundation, a trust controlled by the Company, in relation to CSR expenditure
during the year is `282.20 million (Previous year `1,161.21 million) refer Note No. 44.2.7.
(d) Excess Amount of CSR spent during the year carried forward: (` in million)
Particulars Year ended March 31, 2021
Opening Balance -
Amount required to be spent during the year 5,387.72
Amount spent during the year 5,530.74
Closing Balance 143.02
34.3 The Miscellaneous Expenditure in Note No. 34 includes Statutory Auditors Remuneration as under:
(` in million)
Payment to Auditors Year ended March 31, 2021 Year ended March 31, 2020
Audit Fees 32.57 32.57
Certification and Other Services 12.75 14.40
Travelling and Out of Pocket Expenses 2.39 18.30
Total 47.71 65.27
35. Finance Cost (` in million)
Particulars Year ended March 31, 2021 Year ended March 31, 2020
Interest:
- On Non-convertible Debentures 967.11 -
328 - On Foreign Currency Bonds 293.71 148.38
- On Foreign Currency Term Loan and Working Capital Loans 1,217.44 3,572.14
- On Cash Credit 10.39 12.40
- On Commercial Papers 577.46 1,461.66
- Others 15.45 18.20
Borrowing Cost-Exchange difference on Foreign Currency
(772.96) 3,252.42
Loan (Note No. 35.1)
Unwinding of:
- Decommissioning Provisions 13,066.89 17,687.86
- Lease liabilities 2,298.33 2,055.55
- Financial liabilities 38.00 28.15
- Liability for Compulsory Convertible Debentures 4,433.59 4,859.99
Total 22,145.41 33,096.75
 ANNUAL REPORT
2020-21
35.1 In terms of para 6 and 6A of Ind AS 23 ‘Borrowing Cost’ the exchange difference arising out of foreign
currency borrowings i.e. the difference between the cost of borrowings in functional currency (`) as
compared to the cost of borrowings in foreign currency is treated as finance cost as an adjustment to
foreign exchange loss. During the year, there has been an unrealised foreign exchange gain in respect
of the translation of the same foreign exchange borrowings, the foreign exchange gain amounting to
`772.96 million i.e. to the extent of the foreign exchange loss previously adjusted has been recognised as
an adjustment to interest.
36. Depreciation, Depletion, Amortization and Impairment (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Depletion of Oil and Gas Assets 117,877.70 134,333.67
Depreciation of other Property, Plant and Equipment 19,740.33 20,933.34
Depreciation of right-of-use assets 53,269.67 47,395.17
Total Depreciation 73,010.00 68,328.51
Less: Allocated to:
Exploratory Drilling 17,779.48 15,891.23

Standalone Financial Statements

Development Drilling 16,602.41 17,515.54
Others 220.35 38,407.76 529.71 34,392.03
Amortisation of intangible assets 600.91 578.17

Impairment Loss (Note No. 47)

Provided during the year 35,140.20 22,610.35
Less: Reversed during the year 28,752.80 6,387.40 5,745.64 16,864.71

Total 163,273.77 186,168.58

36.1 During the year, based on the recommendation of internally constituted committee, the Company has
excluded the condensate generated in the pipelines post well head and the gas which is liberated in Crude
Stabilization Unit during stabilization of the crude oil from the production for the purpose of calculation of
depletion on oil and gas assets using unit of production method. This has resulted in decrease in depletion
amounting by `1,482.47 million for the year. This has an impact in future periods also, estimation of which
is impracticable.
37. Other impairment and Write Offs (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Impairment for:
Doubtful Debts 0.37 0.61 329
Doubtful Claims/Advances 1,289.59 5,572.35
Non-Moving Inventory 1,194.82 1,342.18
Others 2.32 331.82
2,487.10 7,246.96
Write-Offs
Disposal/Condemnation of Other PPE & ROU Assets 1,170.24 1,032.36
Claims/Advances 4.80 24.85
Inventory 123.82 172.37
Receivables - 0.04
1,298.86 1,229.62
Total 3,785.96 8,476.58
 THE UNSTOPPABLE
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38. Tax Expense (` in million)
Particulars Year ended March 31, 2021 Year ended March 31, 2020
Current tax in relation to:
- Current year 30,560.00 74,100.00
- Earlier years 11,489.53 (3,612.78)
42,049.53 70,487.22
Deferred tax 9,514.00 (1,245.77)
9,514.00 (1,245.77)
Total 51,563.53 69,241.45

38.1 The Government of India through “The Taxation 38.2 The Government of India has enacted Direct
Laws (Amendment) Act, 2019” has inserted Tax Vivad Se Vishwas Act, 2020, providing a
Section 115BAA of the Income Tax Act, 1961, mechanism for settlement of disputes related
whereby a domestic company can irrevocably to Direct Tax matters. The company has opted
opt for a lower corporate tax rate subject to settle certain Income-tax disputes and
to foregoing of certain tax deductions and accordingly, has filed application before the
incentives, including accumulated MAT credit designated authority as prescribed under the
eligible for set-off in subsequent years. The Act. After considering existing provision, in
company has still not exercised this option and respect of these disputes, a sum of `5,063.18
continues to evaluate the benefit of exercising million payable under the said Act has been
the option of a lower corporate tax rate vis-à- charged as current tax relating to earlier years
vis the pre-existing provisions. The Company in the Statement of Profit and Loss during the
can exercise the option till the filing of return of current year.
income. Pending exercising of the option, the
38.3 During the year, the Company has considered
company continues to recognize the taxes on
the benefit of deduction on dividend income
income for the year ended March 31, 2021 as
during the year, as per section 80M of the
per the earlier provisions.
Income Tax Act, 1961, having a tax impact
amounting to `7,693.09 million on current tax
expense.
39. The income tax expense for the year can be reconciled to the accounting profit as follows:
(` in million)
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Profit before tax 164,027.90 203,878.28
Income tax expense calculated at 34.944% 57,317.91 71,243.22
330 (FY 2019-2020: 34.944%)
Less: Exemptions / Deductions
Dividend - 8,618.63
Deduction under section 80-IA 166.70 178.79
Deduction under section 80-M 7,693.09 -
Add: Effect of expenses that are not deductible in determining taxable profit
Corresponding Effect of temporary differences on account of current tax of earlier
(11,186.42) 4,558.03
periods
Current Tax on CSR Expenditure 1,751.39 564.98
Expenses not allowed in Income Tax 60.79 2,811.30
Less: Effect of concessions (research and development u/s 35(2AB) and 35(1)(ii)) - 834.45
Sub total 40,083.88 69,545.66
Others (9.88) 3,308.57
40,074.00 72,854.23
Adjustments recognised in the current year in relation to the current tax of prior years 11,489.53 (3,612.78)
Income tax expense recognised in profit or loss (relating to continuing operations) 51,563.53 69,241.45
 ANNUAL REPORT
2020-21
(` in million)

Year ended Year ended

Income tax recognised in other comprehensive income
March 31, 2021 March 31, 2020
Deferred tax
Arising on income and expenses recognised in other comprehensive income:
Net fair value gain/(loss) on investments in equity shares at FVTOCI (1,957.67) 8,031.93
Remeasurement of defined benefit obligation 178.94 1,542.43
Total income tax recognised in other comprehensive income (1,778.73) 9,574.36
Bifurcation of the income tax recognised in other comprehensive income into:-
Items that will not be reclassified to profit or loss (1,778.73) 9,574.36
Items that may be reclassified to profit or loss - -

Standalone Financial Statements

40. Earnings per Equity share (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Profit after tax for the year attributable to equity shareholders
112,464.37 134,636.84
(` in million)
Weighted average number of equity shares (No. in million) 12,580.28 12,580.28
Basic and Diluted earnings per equity share (`) 8.94 10.70
Face Value per equity share (`) 5.00 5.00

41. Leases
As part of transition, under Ind AS 116 ‘Leases’ during the Previous year, the Company had availed the
practical expedient of not to apply the recognition requirements of Ind AS 116 to short term leases and
also applied materiality threshold for recognition of assets and liabilities related to leases.
41.1 Expenditure booked under various heads related to Ind AS 116 ‘Leases’ and Company’s exposure
to future cash outflows is as under:
(` in million)

Expenditure Heads Year ended March 31, 2021 Year ended March 31, 2020
331
Depreciation expense on right-of-use assets 53,269.67 47,395.17
Interest expense on lease liabilities 3,808.25 3,720.25
Expense relating to short-term leases 4,988.01 11,463.02
Expense relating to leases of low value assets 2,639.64 3,021.35
Expense relating to variable lease payments not included in
5,116.77 8,084.60
the measurement of the lease liability
 THE UNSTOPPABLE
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41.2 Estimated future undiscounted cash flows for lease payments as at March 31, 2021:

Particulars As at March 31, 2021 As at March 31, 2020

Future Lease payable from end of the year
Up to 1 year 43,919.23 50,468.74
Between 1 to 3 year 46,542.65 44,106.36
Between 3 to 5 year 8,711.37 8,163.63
More than 5 year 11,829.84 280.09
Total 111,003.09 103,018.82
Less: Interest cost 7,210.22 5,171.03
Net lease liability 103,792.87 97,847.79
Perpetual lease liability 417.96 417.96
Total lease liabilities 104,210.83 98,265.75
41.3 Pursuant to amendment to Ind AS 116 vide the Companies (Indian Accounting Standards) Amendment
Rules, 2020 dated July 24, 2020, the Company applying the provisions of para 46A of the above rules has
opted for practical expedient on rent concessions that meet the conditions in paragraph 46B of amended
Ind AS 116. On application of the practical expedient, lease rent concession amounting to `37.72 million
has been recognised during the year and capitalised in the related well cost as per the accounting policies
of the Company.
42. Employee benefit plans
42.1 Defined Contribution plans:
42.1.1 Provident Fund
The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which
invests the funds in permitted securities. The obligation of the Company is to make such fixed contribution
and to ensure a minimum rate of return to the members as specified by Government of India (GoI). As per
report of the actuary, overall interest earnings and cumulative surplus is more than the statutory interest
payment requirement. Hence, no further provision is considered necessary. The details of fair value of
plan assets and obligations are as under:
(` in million)
332
Particulars As at March 31, 2021 As at March 31, 2020*
Obligations at the end of the year 142,255.57 134,889.76
Fair Value of Plan Assets at the end of the year 144,301.89 136,448.00
* Fair value of Plan Assets is reinstated based on Audited Balance Sheet of the Provident Fund Trust as at March
31, 2020 and figure of Obligation is reinstated based on re-computation of liability at official rates declared by
Employees Provident Fund Organisation for the FY 2020-21.
 ANNUAL REPORT
2020-21
Provident Fund is governed through a separate employees during the year within the overall
trust. The board of trustees of the Trust functions limit of Post Retirement Benefit Scheme. An
in accordance with any applicable guidelines employee has the option to determine the
or directions that may be issued in this behalf contribution to be made in PRBS and NPS.
from time to time by the Central Government
The obligation of the Company is to contribute
or the Central Provident Fund Commissioner.
to NPS at the option of employee to the extent
The board of trustees have the following
of amount not exceeding 30% of basic pay
responsibilities:
and dearness allowance as reduced by the
(i) Investments of the surplus as per the employer’s contribution towards provident
pattern notified by the Government in this fund, gratuity, post-retirement medical Benefit
regard so as to meet the requirements of (PRMB), post-retirement benefit scheme or any
the fund from time to time. other retirement benefits. An employee can opt
for a maximum of up to 10% of its Basic Salary
(ii) Raising of moneys as may be required
and DA as employer’s contribution towards
for the purposes of the fund by sale,
NPS. All other standard provisions of NPS
hypothecation or pledge of the investment
applies to the scheme.

Standalone Financial Statements

wholly or partially.
42.2 Employee Pension Scheme 1995
(iii) Fixation of rate of interest to be credited to
members’ accounts. The Employee Pension Scheme -1995 is
administered by Employees Provident Fund
42.1.2 Post Retirement Benefit Scheme (PRBS)
Organization of India, wherein the Company
The defined contribution pension scheme of has to contribute 8.33% of salary (subject to
the Company for its employees is administered maximum of `15,000 per month) out of the
through a separate trust. The obligation of the employer’s contribution to Provident Fund.
Company is to contribute to the trust to the
42.3 Composite Social Security Scheme (CSSS)
extent of amount not exceeding 30% of basic
pay and dearness allowance as reduced by The Composite Social Security Scheme is
the employer’s contribution towards provident formulated by the Company for the welfare of
fund, gratuity, post-retirement medical Benefit its regular employees and it is administered
(PRMB) or any other retirement benefits. through a separate Trust, named as Composite
Social Security Scheme Trust. The obligation
The board of trustees of the Trust functions
of the Company is to provide matching
in accordance with any applicable guidelines
contribution to the Trust to the extent of
or directions that may be issued in this behalf
contribution of the regular employees of the
from time to time by the Central Government.
Company. The Trust provides an assured lump
The board of trustees have the following
sum support amount in the event of death or
responsibilities:
permanent total disablement of an employee 333
(i) Investments of the surplus as per the while in service. In case of Separation
pattern notified by the Government in this other than Death/Permanent total disability,
regard so as to meet the requirements of employees own contribution along with interest
the fund from time to time. is refunded.
(ii) Fixation of rate of contribution and interest The Board of trustees of the Trust functions in
thereon. accordance with Trust deed, Rule, Scheme and
(iii) Purchase of annuities for the members. applicable guidelines or directions that may be
issued by Management from time to time.
42.1.3 National Pension Scheme (NPS)
The Board of trustees has the following
The Company has introduced NPS for its responsibilities:
 THE UNSTOPPABLE
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(i) Investments of the surplus as per the in the event of death of an employee or
pattern notified by the Government in this Permanent Total Disablement leading to
regard so as to meet the requirements of the cessation from service and refund of
the fund from time to time. own contribution along with interest in case
of separation other than death.
(ii) Fixation of rate of interest to be credited to
members’ accounts. 42.4 The amounts recognized in the financial
statements before allocation for the defined
(iii) To provide cash benefits to the nominees
contribution plans are as under:

(` in million)
Contribution for key
Amount recognized during
Defined Contribution Plans management personnel
2020-21 2019-20 2020-21 2019-20
Provident Fund 4,934.19 4,448.50 2.85 2.48
Post Retirement Benefit Scheme (PRBS) 5,249.94 5,967.04 2.84 3.18
Employee Pension Scheme-1995 (EPS) 282.61 323.59 0.07 0.06
Composite Social Security Scheme (CSSS) 543.62 549.60 0.19 0.18
National Pension Scheme (NPS) 177.79 - 0.14 -

42.5 Defined benefit plans treatment as out-patient. The liability for the
same is recognized annually on the basis of
42.5.1 Brief Description: A general description of the
actuarial valuation. Full medical benefits on
type of Employee Benefits Plans is as follows:
superannuation and on voluntary retirement are
All the employee benefit plans of the Company available subject to the completion of minimum
are run as Group administration plans (Single 20 years of service and 50 years of age.
Employer Scheme) which include employees
An employee should have put in a minimum
of the Company seconded to ONGC Videsh
of 15 years of service rendered in continuity in
Limited (OVL) 100% subsidiary, as well as
the Company at the time of superannuation to
employees directly appointed by OVL.
be eligible for availing post-retirement medical
42.5.2 Gratuity facilities. However, as per DPE guidelines
15 days salary for each completed year dated August 03, 2017, the Post-Retirement
of service. Vesting period is 5 years and Medical Benefits is allowed to Board Level
the payment is restricted to `2 million on executives (without any linkage to 15 years
superannuation, resignation, termination, of service) upon completion of their tenure or
334 upon attaining the age of retirement, whichever
disablement or on death.
is earlier.
Scheme is funded through own Gratuity Trust.
The liability for gratuity as above is recognized During the year 2019-20, the Company had
on the basis of actuarial valuation. approved the formation of ONGC Post-
Retirement Medical Benefit Trust to provide
42.5.3 Post-Retirement Medical Benefits for and fund towards Post-Retirement Medical
The Company has Post-Retirement Medical Liability as per the Company’s post - retirement
benefit (PRMB), under which the retired medical scheme, in a staggered manner. The
employees and their spouses are provided “ONGC PRMB Trust” has also been formed
medical facilities in the Company hospitals and registration of Trust was completed during
/ empanelled hospitals. They can also avail the year and the implementation of scheme is
under process.
 ANNUAL REPORT
2020-21
42.5.4 Terminal Benefits 42.5.5 These plans typically expose the Company to
actuarial risks such as: investment risk, interest
At the time of superannuation, employees are
rate risk, longevity risk and salary risk.
entitled to settle at a place of their choice and
they are eligible for Settlement Allowance.

The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
When there is a deep market for such bonds; if the return on plan asset is below this rate, it will
Investment risk
create a plan deficit. Currently, for these plans, investments are made in government securities, debt
instruments, Short term debt instruments, Equity instruments and Asset Backed, Trust Structured
securities as per notification of Ministry of Finance.

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset
Interest risk
by an increase in the return on the plan’s investments.

Standalone Financial Statements

The present value of the defined benefit plan liability is calculated by reference to the best estimate
Longevity risk of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan’s liability.

The present value of the defined benefit plan liability is calculated by reference to the future salaries of
Salary risk plan participants. As such, an increase in the salary of the plan participants will increase the plan’s
liability.

No other post - retirement benefits are provided (OVL) 100% subsidiary, as well as employees
to these employees. directly appointed by OVL.

In respect of the above plans, the most recent Further, ONGC accounts for the employee
actuarial valuation of the plan assets and the benefit liability of all Defined Benefit plans
present value of the defined benefit obligation pertaining to OVL employees in its books of
were carried out as at March 31, 2021 by a account and expenditure for the period is
member firm of the Institute of Actuaries of transferred to OVL’s books of account. This is
India. The present value of the defined benefit done in compliance with the requirement for
obligation, and the related current service cost group administrative plan stated in para 38 of
and past service cost, were measured using Ind AS 19 ‘Employee Benefits’. 335
the projected unit credit method. 42.6.2 Earned Leave (EL) Benefit
42.6 Other long term employee benefits Accrual – 30 days per year
42.6.1 Brief Description: A general description of the Encashment while in service – 75% of Earned
type of Other long term employee benefits is as Leave balance subject to a maximum of 90
follows: days per calendar year

All the employee benefit plans of the Company Encashment on retirement – maximum 300
days
are run as Group administration plans (Single
Employer Scheme) including employees of the Scheme is funded through Life Insurance
Company seconded to ONGC Videsh Limited Corporation of India (LIC).
 THE UNSTOPPABLE
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Each employee is entitled to get 15 earned January 1, 2017 and CPSEs have been allowed
leaves for each completed half year of service. to frame their own leave rules considering
All regular employees of the company while in operational necessities and subject to
service may be allowed encashment of Earned conditions set therein. Therefore, the requisite
Leave once in a calendar year, to the extent of conditions are met by the company.
75% of the Earned Leave at their credit, subject
42.6.3 Good Health Reward (Half pay leave)
to maximum of 90 days.
Accrual - 20 days per year
In addition, each employee is entitled to get 10
HPL at the end of every six months. The entire Encashment while in service - Nil
accumulation is permitted for encashment only Encashment on retirement - 50% of Half Pay
at the time of retirement. DPE had clarified Leave balance.
earlier that sick leave cannot be encashed,
though Earned Leave (EL) and Half Pay Leave Scheme is funded through Life Insurance
(HPL) could be considered for encashment Corporation of India (LIC).
on retirement subject to the overall limit of 300 The liability for the same is recognized annually
days. Consequently, Ministry of Petroleum and on the basis of actuarial valuation.
Natural Gas (MoP&NG), GOI had advised the
company to comply with the DPE Guidelines. 42.6.4 The principal assumptions used for the
Subsequently, the matter has been dealt in purposes of the actuarial valuations were as
3rd PRC recommendations, which is effective follows.

S. No. Particulars As at March 31, 2021 As at March 31, 2020

Gratuity

I. Discount rate (%) 6.81 6.80

II. Expected return on plan assets (%) 6.80 6.80

III. Annual increase in salary (%) 7.50 7.50

Leave

IV. Discount rate (%) 6.81 6.80

336 V. Expected return on plan assets(%) 6.80 6.80

VI. Annual increase in salary(%) 7.50 7.50

Post-Retirement Medical Benefits

VII. Discount rate (%) 6.81 6.80

VIII. Expected return on plan assets(%) NA NA

IX. Annual increase in costs(%) 7.50 7.50

 ANNUAL REPORT
2020-21

S. No. Particulars As at March 31, 2021 As at March 31, 2020

Terminal Benefits

X. Discount rate(%) 6.81 6.80

XI. Expected return on plan assets(%) NA NA

XII. Annual increase in costs(%) 7.50 7.50

XIII. Annual increase in salary(%) 7.50 7.50

Employee Turnover (%)

XIV. Up to 30 Years 3.00 3.00

Standalone Financial Statements

XV. From 31 to 44 years 2.00 2.00

XVI. Above 44 years 1.00 1.00

XVII. Weighted Average Duration of Present Benefit Obligations 13.30 12.92

Mortality Rate

As per Indian Assured As per Indian Assured

XVIII. Before retirement Lives Mortality Table Lives Mortality Table
(2012-14) (2012-14)

As per Indian Assured As per Indian Assured

XIX. After retirement Lives Mortality Table Lives Mortality Table
(2012-14) (2012-14)

The discount rate is based upon the market yield available on Government bonds at the accounting date
with a term that matches the weighted average duration of present benefit obligations. The salary growth
takes account inflation, seniority, promotion and other relevant factors on long term basis. Expected rate
of return on plan assets is based on market expectation, at the beginning of the year, for return over the
entire life of the related obligation. 337
The mortality rate for Male insured lives have been assumed for Actuarial Valuation as on 31.03.2021 as
per 100% of Indian Assured Life Mortality (2012-14) issued by Institute of Actuaries of India for Actuarial
Valuation as on 31.03.2021, as separate rates applicable for female lives has not been published by The
Institute of Actuaries of India for 2012-14. Therefore, uniform rates of mortality for Male have been used for
both Male and Female employees for computation of Employee Benefit Liability.
 338
42.7 Amounts recognized in the Financial Statements before allocation in respect of these defined benefit plans and other long term

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employee benefits are as follows: -
(` in Million)
Post-Retirement
Gratuity Leave Terminal Benefits
Medical Benefits
Particulars Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
March March March March March March March March
31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020
Service Cost :

Current service cost 719.57 740.78 1,857.20 1,674.75 1,024.22 862.64 86.14 75.96

Past service cost and (gain)/loss from settlements - - - - - - - -

Net interest expense (22.62) (73.77) 248.22 486.26 3,390.62 3,455.30 97.20 85.49
Increase or decrease due to adjustment in opening corpus
(29.76) (27.08) 162.30 (224.01) - -
consequent to audit
Components of defined benefit costs recognised in Employee
667.19 639.93 4,414.84 4,317.94 183.34 161.45
Benefit expenses
Re-measurement on the net defined benefit liability:
Actuarial (gains) / losses arising from changes in demographic
- 12.38 - 14.15 - 24.96 - 0.71
assumptions
Actuarial (gains) / losses arising from changes in financial
(14.29) 1,265.95 (23.14) 1,830.74 (49.76) 3,978.51 (0.90) 312.35
assumptions
Actuarial (gains) / losses arising from experience adjustments 218.06 (1,201.35) 4,853.94 (14.59) 564.81 295.95 5.66 64.34
Return on Plan Assets excluding amount included in net interest
(70.01) (97.45) (122.72) (279.24) - -
cost
Components of Re-measurement 133.76 (20.47) 515.05 4,299.42 4.76 377.40

Total 800.95 619.46 6,975.80 3,488.06 4,929.89 8,617.36 188.10 538.85

The Components of Re-measurement of the net defined benefit liability recognized in other comprehensive income is `512.07 million (Previous Year `4,414.00 million).
42.8 Movements in the present value of the defined benefit obligation and other long term employee benefits are as follows:
(` in Million)
Post-Retirement
Gratuity Leave Terminal Benefits
Medical Benefits
Particulars Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
March March March March March March March March
31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020
Opening defined benefit obligation 24,845.16 26,489.89 29,462.90 30,289.84 49,910.35 44,504.70 1,433.58 1,103.50

Current service cost 726.49 741.61 1,871.61 1,711.16 1,033.03 870.88 86.99 76.65

Interest cost 1,689.46 2,058.26 2,003.48 2,353.52 3,393.90 3,458.01 97.48 85.74

Re-measurement (gains)/losses:
Actuarial (gains) / losses arising from changes in demographic
- 12.42 - 14.15 - - 0.72
assumptions 24.98
Actuarial (gains) / losses arising from changes in financial
(14.34) 1,275.78 (23.35) 1,845.14 (49.81) 3,980.25 (0.90) 312.59
assumptions
Actuarial (gains) / losses arising from experience adjustments 235.16 (1,285.95) 4,865.06 (221.19) 565.75 296.51 5.74 64.03

Past service cost, including losses/(gains) on curtailments - - - - - - - -

Benefits paid (4,428.58) (4,446.84) (7,031.96) (6,529.72) (2,882.59) (3,224.98) (106.82) (209.65)

Closing defined benefit obligation 23,053.35 24,845.17 31,147.74 29,462.90 51,970.63 49,910.35 1,516.07 1,433.58

Current obligation 2,229.96 2,119.89 188.82 185.19

Non-Current obligation 49,740.67 47,790.46 1,327.25 1,248.39

ANNUAL REPORT
2020-21
339

Standalone Financial Statements

 340
42.9 The amount included in the Standalone Balance sheet arising from the entity’s obligation in respect of its defined benefit plan and

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other long term employee benefits is as follows:
(` in Million)
Post-Retirement
Gratuity Leave Terminal Benefits
Medical Benefits
Particulars Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
March March March March March March March March
31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020

Present value of funded defined benefit obligation 23,053.35 24,845.17 31,147.74 29,462.90 51,970.63 49,910.35 1,516.07 1,433.58

Fair value of plan assets 22,584.68 25,197.52 24,159.07 26,120.76 NA NA NA NA

Funded status (468.67) 352.35 (6,988.67) (3,342.14) NA NA NA NA

Restrictions on asset recognised NA NA NA NA NA NA NA NA

Net liability/(assets) arising from defined benefit obligation (468.67) (352.35) 6,988.67 3,342.14 51,970.63 49,910.35 1,516.07 1,433.58

42.10 Movements in the fair value of the plan assets are as follows:
(` in Million)
Gratuity Leave
Particulars Year ended Year ended Year ended Year ended
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020

Opening fair value of plan assets 25,197.52 27,400.28 26,120.76 23,725.32

Adjustment in opening corpus consequent to audit of the Trust 29.91 15.91 (161.44) 217.38

Expected return on plan assets 1,715.46 2,130.23 1,765.23 1,860.35

Re-measurement gain (loss):

Return on plan assets (excluding amounts included in net interest

70.37 97.95 124.34 282.92
expense)

Contributions from the employer - - 3,342.14 6,564.52

Benefits paid (4,428.58) (4,446.85) (7,031.96) (6,529.73)

Closing fair value of plan assets 22,584.68 25,197.52 24,159.07 26,120.76

 ANNUAL REPORT
2020-21
Expected Contribution in respect of Gratuity for valuation for 190 contingent employees (As at
next year will be `1,190.82 million (For the year March 31, 2020: 222 employees) engaged in
ended March 31, 2020 `1,240.04 million). different work centers.
The Company has recognized a gratuity liability 42.11 The fair value of the plan assets at the end of
of `87.73 million as on March 31, 2021 (As at the reporting period for each category, are as
March 31, 2020 `102.47 million) as per actuarial follows.
(` in million)
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Gratuity
Cash and cash equivalents 0.024 1.28
Investments in Mutual Fund 1.50 1.50
Debt investments categorised by issuers’ credit rating:
- AAA 1,085.82 1,220.98
- AA+ 397.49 397.64

Standalone Financial Statements

Group Gratuity Cash Accumulation Scheme
(Traditional Fund)
Insurance Companies 19,830.23 22,450.84

Other Assets
Bank Deposits 687.10 800.52
Net Current Assets 582.52 324.76
Total Gratuity 22,584.68 25,197.52

Leave
100% managed by Insurance Company (through Trust) 24,159.07 26,120.76
Total 46,743.75 51,318.28
42.11.1 The fair values of the above equity and debt instruments are determined based on quoted market prices
in active markets.
42.11.2 Cost of Investment is taken as fair value of Investment in Unit Linked Plan of Insurance Company
(ULIPs) and Bank TDR.
42.11.3 All Investments in PSU Bonds, Government Securities and Treasury Bills are quoted in active market.
42.11.4 Fair value of Investment in Group Gratuity Cash Accumulation Scheme (Traditional Fund) of Insurance 341
Company is taken as book value on reporting date.
42.11.5 Net Current Assets represent accrued interest on Investments less outstanding gratuity reimbursements
as on reporting date.
42.11.6 The actual return on plan assets of gratuity during FY 2020-21 was `1,785.83 million (during FY 2019-
20 `2,228.18 million) and for Leave `1,889.57 million (during FY 2019-20 `2,143.27 million).
42.11.7 Significant actuarial assumptions for the determination of the defined obligation are discount rate and
expected salary increase. The sensitivity analyses below have been determined based on reasonably
possible changes of the respective assumptions occurring at the end of the reporting period, while
holding all other assumptions constant.
 THE UNSTOPPABLE
ENERGY SOLDIERS
42.11.8 Sensitivity Analysis as at March 31, 2021 (` in Million)
Post-Retirement
Significant actuarial assumptions Gratuity Leave Terminal Benefits
Medical Benefits
Discount Rate
- Impact due to increase of 50 basis points (735.56) (1,116.71) (2,489.81) (59.31)
- Impact due to decrease of 50 basis points 701.55 1,213.96 2,565.62 53.04
Salary increase
- Impact due to increase of 50 basis points 176.71 1,183.81 - -
- Impact due to decrease of 50 basis points (269.13) (1,100.33) - -
Cost increase
- Impact due to increase of 50 basis points - - 2,488.12 53.64
- Impact due to decrease of 50 basis points - - (2,550.98) (51.58)
42.11.9 Sensitivity Analysis as at March 31, 2020 (` in Million)
Post-Retirement
Significant actuarial assumptions Gratuity Leave Terminal Benefits
Medical Benefits
Discount Rate
- Impact due to increase of 50 basis points (602.05) (985.50) (2,358.75) (41.97)
- Impact due to decrease of 50 basis points 805.36 1,067.26 2,578.04 45.04
Salary increase
- Impact due to increase of 50 basis points 288.68 1,054.88 - -
- Impact due to decrease of 50 basis points (137.16) (983.73) - -
Cost increase
- Impact due to increase of 50 basis points - - 2,500.50 44.94
- Impact due to decrease of 50 basis points - - (2,391.36) (42.26)
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of
the assumptions may be correlated. Sensitivity due to mortality & withdrawals are not material & hence impact
of change not calculated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same as
that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
42.12 Maturity Profile of Defined Benefit Obligation and other long term employee benefits:

342 (` in million)

Defined Benefit: As at March 31, 2021 As at March 31, 2020

Gratuity:
Less than One Year 3,852.75 4,513.63
One to Three Years 5,778.39 6,376.56
Three to Five Years 4,079.56 4,381.39
More than Five Years 9,342.65 9,573.59
Leave:
Less than One Year 4,918.52 4,260.45
One to Three Years 6,998.55 6,818.00
Three to Five Years 5,376.22 4,953.29
More than Five Years 13,854.45 13,431.16
 ANNUAL REPORT
2020-21
43. Segment Reporting
43.1 The Company has identified and reported segments taking into account the different risks and returns,
the organization structure and the internal reporting systems. Accordingly, the Company has identified
following geographical segments as reportable segments
A. Offshore
B. Onshore
43.2 Segment revenue and results
The following is an analysis of the Company’s revenue and results from continuing operations by
reportable segment.
(` in million)
Segment revenue Segment profit/(loss)
Particulars Year ended March Year ended March Year ended March Year ended March
31, 2021 31, 2020 31, 2021 31, 2020*

Standalone Financial Statements

Offshore 444,757.14 635,218.22 140,756.62 217,733.04
Onshore 236,653.76 326,917.87 15,044.99 (1,966.10)
Total 681,410.90 962,136.09 155,801.61 215,766.94
Unallocated corporate expense
(11,688.93) (16,644.78)
(Net)
Finance costs (22,145.41) (33,096.75)
Interest/Dividend income 42,060.63 37,852.88
Profit before tax 164,027.90 203,878.29
*Restated (refer Note No. 52)

43.2.1 Segment revenue reported above represents revenue generated from external customers. There were
no inter-segment sale in the current year (Previous year: Nil)
43.2.2 The accounting policies of the reportable segments are the same as the Company’s accounting policies
described in Note No. 3. Segment profit represents the profit before tax earned by each segment
excluding finance cost and other income like interest/dividend income. This is the measure reported
to the Chief Operating Decision Maker for the purposes of resource allocation and assessment of
segment performance.

343
 THE UNSTOPPABLE
ENERGY SOLDIERS
43.3 Segment assets and liabilities (` in million)

Particulars As at March 31, 2021 As at March 31, 2020*

Segment assets
Offshore 1,415,917.49 1,326,424.84
Onshore 677,356.50 631,902.53
Total segment assets 2,093,273.99 1,958,327.37
Unallocated 1,091,261.80 1,075,035.68
Total assets 3,184,535.79 3,033,363.05
Segment liabilities
Offshore 452,196.49 421,872.39
Onshore 148,038.27 159,268.46
Total segment liabilities 600,234.76 581,140.85
Unallocated 538,715.37 521,274.17
Total liabilities 1,138,950.13 1,102,415.02
*Restated (refer Note No. 52)

Aforesaid segments are used for the purpose of monitoring performance and allocation of resources.

43.3.1 All assets are allocated to reportable segments other than investments in subsidiaries, associates and
joint ventures, other investments, loans and current and deferred tax assets.
43.3.2 All liabilities are allocated to reportable segment other than borrowing, current and deferred tax liabilities.
43.3.3 Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of
the segments and amount allocated on reasonable basis. Unallocated expenditure includes common
expenditure incurred for all the segments and expenses incurred at the corporate level. Finance cost
includes unwinding of discount on decommissioning provisions not allocated to segment.
43.4 Other information (` in million)

Depreciation, depletion and amortization Other non-cash items-impairment and write off
Particulars Year ended Year ended Year ended Year ended
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Offshore 106,481.47 115,835.08 2,790.82 6,961.02
344
Onshore 49,217.18 52,174.93 972.85 1,484.14
Unallocated 1,187.72 1,293.86 22.29 31.42
156,886.37 169,303.87 3,785.96 8,476.58

43.5 Impairment loss (refer Note No. 47) (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Offshore 6,159.47 13,432.43
Onshore 227.93 3,432.28
6,387.40 16,864.71
 ANNUAL REPORT
2020-21
43.5.1 Exceptional Items- Impairment loss (refer Note No 47) (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Offshore 8,546.83 20,409.04
Onshore (22,297.17) 28,581.43
(13,750.34) 48,990.47
43.6 Additions to non- current assets (` in million)
Particulars Year ended March 31, 2021 Year ended March 31, 2020
Offshore 53,003.06 58,049.98
Onshore 27,050.27 14,166.24
Unallocated 988.50 (1,356.41)
Total 81,041.83 70,859.81
43.7 Information about major customers
Company’s significant revenues (more than 85%) are derived from sales to Public Sector Undertakings.

Standalone Financial Statements

The total sales to such companies amounted to `589,473.92 million in 2020-21 and `832,224.70 million
in 2019-20.
No other single customer contributed 10% or more to the Company’s revenue for 2020-21 and 2019-20.
43.8 Information about geographical areas:
The Company is domiciled in India. The amount of its revenue from sale of products from external
customers broken down by location of customers is tabulated below:
(` in million)
Location Year ended March 31, 2021 Year ended March 31, 2020
India 635,046.92 894,123.92
Other Countries (including SEZ) 43,862.04 62,890.14
Total 678,908.96 957,014.06
The total of non-current assets other than financial instruments, deferred tax assets, post-employment
benefit assets, broken down by location of assets are shown below:
(` in million)
Location As at March 31, 2021 As at March 31, 2020
India 1,728,407.25 1,647,365.42
Other Countries - -
Total 1,728,407.25 1,647,365.42
345
44.10 Information about products and services:
The Company generates its revenue from sale of crude oil, natural gas and value added products. The
information about revenues from external customers about each product is disclosed in Note No. 30.5.
 THE UNSTOPPABLE
ENERGY SOLDIERS
44. Related Party Disclosures 1.12 ONGC Videsh Rovuma Limited (Note no
44.1.1)
44.1 Name of related parties and description of
relationship: 2. Mangalore Refinery and Petrochemicals
Limited (MRPL)
3. ONGC Mangalore Petrochemicals Limited
A. Subsidiaries
(OMPL)
1. ONGC Videsh Limited (OVL)
4. Hindustan Petroleum Corporation Limited
1.1. ONGC Nile Ganga B.V. (ONGBV) (HPCL)
1.1.1. ONGC Campos Limiteda 4.1. Prize Petroleum Company Limited
1.1.2. ONGC Nile Ganga (San Cristobal) B.V. 4.1.1 Prize Petroleum International Pte. Limited
1.2. ONGC Amazon Alaknanda Limited (OAAL) 4.2. HPCL Biofuels Limited
1.3. ONGC Narmada Limited (ONL) 4.3. HPCL Middle East FZCO
1.4. ONGC (BTC) Limited 4.4 HPCL Shapoorji Energy Private Limited
1.5. Carabobo One AB 5. Petronet MHB Limited
1.5.1. Petro Carabobo Ganga B.V.
1.6. Imperial Energy Limited B. Joint Ventures
1.6.1. Imperial Energy Tomsk Limited 1. Mangalore SEZ Limited (MSEZ)
1.6.2. Imperial Energy (Cyprus) Limited 2. ONGC Petro additions Limited (OPaL)
1.6.3. Imperial Energy Nord Limited 3. ONGC Tripura Power Company Limited
1.6.4. Biancus Holdings Limited (OTPC)

1.6.5. Redcliffe Holdings Limited 4. ONGC Teri Biotech Limited (OTBL)

1.6.6. Imperial Frac Services (Cyprus) Limited 5. Dahej SEZ Limited (DSEZ)

1.6.7. San Agio Investments Limited 6. Indradhanush Gas Grid Limited (IGGL)

1.6.8. LLC Sibinterneft 7. ONGC Mittal Energy Limited (OMEL)

(through OVL)
1.6.9. LLC Allianceneftegaz
8. Sudd Petroleum Operating Company
1.6.10. LLC Nord Imperial (through OVL)
1.6.11. LLC Rus Imperial Group 9. Mansarovar Energy Colombia Limited,
346 1.6.12. LLC Imperial Frac Services Colombia (through OVL)
1.7. Beas Rovuma Energy Mozambique Limited 10. Himalaya Energy Syria BV, Netherlands
(through OVL)
1.8. ONGC Videsh Rovuma Limited
11. Shell MRPL Aviation Fuels and Services
1.9. ONGC Videsh Atlantic Inc.
Limited (SMASL) (through MRPL)
1.10. ONGC Videsh Singapore Pte. Limited
12. Hindustan Coals Private Limited (through
1.10.1. ONGC Videsh Vankorneft Pte. Limited HPCL)
1.11. Indus East Mediterranean Exploration 13. HPOIL Gas Private Limited.(through HPCL)
Limited
14. HPCL Rajasthan Refinery Limited.(through
HPCL)
 ANNUAL REPORT
2020-21
15. South Asia LPG Co. Private Limited.(through 9. Tamba BV, The Netherlands (through OVL)
HPCL)
10. JSC Vankorneft, Russia (through OVL)
16. HPCL - Mittal Energy Limited.(through HPCL) 11. Falcon Oil & Gas BV, Netherlands (through
16.1 HPCL Mittal Pipeline Limited (through HPCL) OVL)
17. Godavari Gas Private Limited.(through 12. GSPL India Gasnet Limited. (through HPCL)
HPCL) 13. GSPL India Transco Limited. (through HPCL)
18. Petronet India Limited. (through HPCL, in
process of voluntary winding up w.e.f. August
30, 2018) D. Trusts (including post retirement employee
benefit trust) wherein the Company have
19. Mumbai Aviation Fuel Farm Facilities Private control
Limited (through HPCL).
1. ONGC Contributory Provident Fund Trust
20. Aavantika Gas Limited.(through HPCL)
2. ONGC CSSS Trust
21. Bhagyanagar Gas Limited. (through HPCL)

Standalone Financial Statements

3. ONGC Sahyog Trust
22. Ratnagiri Refinery & Petrochemicals Limited.
(through HPCL) 4. ONGC PRBS Trust

23. IHB Private Limited (through HPCL) 5. ONGC Gratuity Fund Trust

24. Mangalore STP Limited (through MSEZ) 6. ONGC Energy Center

25. MSEZ Power Limited (through MSEZ) 7. ONGC Foundation

26. Adani Petronet Dahej Port Private Limited 8. ONGC Startup Fund Trust
(through PLL) 9. MRPL Gratuity Fund Trust (through MRPL)
27. India LNG Transport Company Private 10. MRPL Provident Fund Trust (through MRPL)
Limited (through PLL)
11. Ujjwala Plus Foundation, (through HPCL)
28. North East Transmission Company Limited
(through OTPC)
E. Key Management Personnel

C. Associates E.1. Whole-time Directors

1. Pawan Hans Helicopters Limited. 1. Shri Shashi Shanker, Chairman & Managing
Director (up to March 31, 2021)
2. Petronet LNG Limited (PLL)
2. Shri Subhash Kumar, Director (Finance) and
3. Rohini Heliport Limited
additional charge w.e.f. April 01, 2021 as
347
4. Moz LNG1 Holding Company Limited Chairman & Managing Director
(through OVL)
3. Dr. Alka Mittal, Director (HR)
5. Petro Carabobo S.A., Venezuela (through
OVL) 4. Shri Rajesh Kumar Srivastava, Director
(Exploration)
6. Carabobo Ingenieria Y Construcciones, S.A,
Venezuela (through OVL) 5. Shri O.P.Singh, Director(T&FS) (w.e.f. April
01, 2020)
7. Petrolera Indovenezolana SA, Venezuela
(through OVL) 6. Shri Rajesh Kakkar, Director (Offshore) (up to
April 30, 2021)
8. South East Asia Gas Pipeline Limited,
Hongkong (through OVL)
 THE UNSTOPPABLE
ENERGY SOLDIERS
7. Shri Sanjay Kumar Moitra, Director (Onshore) E.3. Independent Directors
(upto May 31,2020)
1. Smt. Ganga Murthy (up to September 07,
8. Shri Anurag Sharma, Director (Onshore) 2020)
(w.e.f. June 01 2020)
2. Shri Amitava Bhattacharya
9. Shri Vivek C Tongaonkar, Chief Financial
E.4. Government Nominee – Directors
Officer w.e.f. April 23, 2021
1. Shri Amar Nath
2. Shri Rajesh Madanlal Aggarwal
E.2. Company Secretary
1 Shri M E V Selvamm, Company Secretary
44.1.1 ONGC Videsh Rovuma Limited (incorporated
in Republic of Mauritius) wound up during
the year.

348

View of an oilfield in Colombia. ONGC Videsh operates in

35 projects across 15 countries
 ANNUAL REPORT
2020-21
44.2 Details of Transactions:
44.2.1 Transactions with Subsidiaries (` in million)
Year ended Year ended
Name of related party Nature of transaction
March 31, 2021 March 31, 2020
(i) Sale of products to:
a) Mangalore Refinery and
Sale of crude oil 38,887.72 41,620.33
Petrochemicals Limited
b) Hindustan Petroleum Corporation Sale of crude oil & value added
111,234.40 148,082.29
Limited products
(ii) Purchase of product from:
a) Mangalore Refinery and Purchase of petroleum oil and
10,252.84 5,646.78
Petrochemicals Limited lubricants/high speed diesel
b) Hindustan Petroleum Corporation Purchase of petroleum oil and

Standalone Financial Statements

2,066.36 4,423.97
Limited lubricants/high speed diesel
(iii) Services received from:
a) Mangalore Refinery and
Reimbursement of Expenses 0.34 -
Petrochemicals Limited
b) Prize Petroleum Corporation Limited
Development of oil field 12.74 16.16
(Subsidiary of HPCL)
(iv) Services provided to:
Leasing of office and maintenance 52.85 53.06
a) Mangalore Refinery and Guarantee fees 8.24 29.02
Petrochemicals Limited
Manpower deputation & other
63.94 1.76
reimbursements
Reimbursement of expenses
631.66 309.92
incurred
c) ONGC Videsh Limited
Guarantee fees (OVVL) 264.40 294.16
Guarantee fees (BREML) 0.01 -
d) Hindustan Petroleum Rent for Office 0.06 0.06
Corporation Limited Other Expenses - 5.67 349
(v) Loan Given/Taken
Inter-corporate Loan taken 2,400.00 -
a) ONGC Videsh Limited
Repayment of Loan (2,400.00) -
 THE UNSTOPPABLE
ENERGY SOLDIERS

Year ended Year ended

Name of related party Nature of transaction
March 31, 2021 March 31, 2020
(vi) Investments
a) ONGC Mangalore Petrochemicals
Investment in equity shares - 2,449.90
Limited

b) Petronet MHB limited Investment in equity shares - 1,853.78

c) Mangalore Refinery and

Sale of equity shares of OMPL 12,169.49 -
Petrochemicals Limited
(vii) Deemed Investments - Non cash transactions (Ind AS fair valuations):
Deemed equity investment on issue
of Financial guarantees by ONGC 258.52 755.26
on behalf of OVL
a) ONGC Videsh Limited
Deemed equity investment on issue
of Financial guarantees by ONGC 24.92 -
on behalf of OVRL
Deemed equity investment against
compulsory convertible debentures - 4,191.71
b) ONGC Mangalore Petrochemicals (CCDs) issued by OMPL
Limited
Deemed equity investment for
- 1.89
Financial guarantees of interest
(viii) Dividend income from:
a) Mangalore Refinery and
Dividend income - 1,255.35
Petrochemicals Limited
b) ONGC Videsh Limited Dividend income 3000.00 5,100.00
c) Hindustan Petroleum Corporation
Dividend income 7,593.74 7,321.15
Limited
d) Petronet MHB Ltd Dividend income 1,646.00 -
(ix) Interest expense :
a) ONGC Videsh Limited Interest on loan taken 7.20 -
350 (x) Non cash transaction (Ind AS fair valuations):
Guarantee fees in respect of
a) ONGC Videsh Limited 405.79 411.48
financial guarantee (OVL)
Guarantee fees in respect of
0.02 -
financial guarantee (OVRL)
(xi) Corporate Financial guarantee issued:
Financial Guarantee issued during
a) ONGC Videsh Limited 54,001.94 113,755.12
the year against term loans
(xii) Commitments given:
a) Mangalore Refinery and Bill discounting of invoices raised on
3,258.96 -
Petrochemicals Limited MRPL with recourse
 ANNUAL REPORT
2020-21
44.2.2 Outstanding balances with Subsidiaries (` in million)

Year ended Year ended

Name of related party Nature of transaction
March 31, 2021 March 31, 2020

A. Amount receivable:

a) Mangalore Refinery and Petrochemicals

Trade and other receivables 2,912.13 1,719.78
Limited

Other receivables 439.93 107.36

b) ONGC Videsh Limited Guarantee Fees (OVVL) 264.40 294.16

Guarantee Fees (BREML) 0.01 -

Standalone Financial Statements

c) Hindustan Petroleum Corporation Limited Trade and other receivables 16,433.63 6,373.29

B. Amount payable:

a) Mangalore Refinery and Petrochemicals

Trade payables 549.33 670.15
Limited

b) Hindustan Petroleum Corporation Limited Trade payables 161.52 74.75

c) Prize Petroleum Corporation Limited Trade payables 0.60 3.15

d) ONGC Videsh Limited Other payable - 152.24

C. Corporate Financial guarantee issued on behalf of subsidiaries:

Value of outstanding financial

a) ONGC Videsh Limited 409,842.86 437,099.00
guarantees

b) Mangalore Refinery and Petrochemicals Value of outstanding financial

- 10,838.12
Limited guarantees

D. Outstanding value of commitment made: 351

a) ONGC Videsh Limited Performance guarantees 8,429.30 9,299.14

b) Mangalore Refinery and Petrochemicals Bill discounting of invoices raised

3,258.96 -
Limited on MRPL with recourse
 THE UNSTOPPABLE
ENERGY SOLDIERS
44.2.3 Transactions with Joint Ventures (` in million)

Year ended Year ended

Name of related party Nature of transaction
March 31, 2021 March 31, 2020
(i) Sale of products to:
a) ONGC Tripura Power Company
Sale of natural gas 7,418.86 5,450.94
Limited
Sale of naphtha & C2-C3 43,172.95 52,730.53
b) ONGC Petro additions Limited
Transfer of Naphtha Pipeline - 1,154.40
(ii) Services received from:
a) ONGC Teri Biotech Limited Bio-remediation services 303.43 298.69
Lease rent for SEZ land and ROU
b) Dahej SEZ Limited 15.30 13.99
charges for pipeline
(iii) Services provided to:
Manpower deputation and other
- 10.18
a) ONGC Petro additions Limited charges
ROU Charges for pipeline received 0.05 0.22
b) ONGC Teri Biotech Limited Field study charges and rent 0.52 0.67
c) ONGC Tripura Power Company
Rent of office space 12.18 -
Limited
d) Indradhanush Gas Grid Limited
Manpower deputation 16.80 22.03
(IGGL)
(iv) Subscription to equity shares
a) Indradhanush Gas Grid Limited
Subscription to Equity shares 490.00 70.00
(IGGL)
(v) Subscription of share warrants
a) ONGC Petro additions Limited Subscription of share warrants 8,709.09 -
Deemed Investments Non cash
(vi)
transaction (Ind AS fair valuations):
Deemed equity investment for Financial
a) ONGC Petro additions Limited 16.60 14.49
guarantees of interest on CCDs
(vii) Dividend Income from:
a) ONGC Tripura Power Company
Dividend income 448.00 504.00
Limited
(viii) Letter of Comfort:
Letter of Comfort against Non-
352 a) ONGC Petro additions Limited
Convertible Debentures (NCDs)
- 21,800.00
 ANNUAL REPORT
2020-21
44.2.4 Outstanding balances with Joint Ventures (` in million)
As at March As at March
Name of related party Nature of transaction
31, 2021 31, 2020
A. Amount receivable:
Trade and other receivables 2,508.09 1,764.11
a) ONGC Petro additions Limited Transfer of Naphtha Pipeline
- 1,362.19
(note no 44.2.4.1)
b) ONGC Tripura Power Company Limited Trade and other receivables 228.08 208.72
c) ONGC Teri Biotech Limited Trade and other receivables - 0.07
d) Indradhanush Gas Grid Limited (IGGL) Trade and other receivables 4.56 8.61
B. Amount payable:
a) ONGC Teri Biotech Limited Trade payables 52.41 30.43
b) ONGC Tripura Power Company Limited Security deposit 5.39 -
C. Advance outstanding:
Advance against subscription to share
a) ONGC Petro addition Limited 33,649.59 24,940.50

Standalone Financial Statements

warrants
D. Commitments:
Unpaid subscription of share warrants 862.81 639.50
a) ONGC Petro addition Limited Backstopping support for Interest
1,926.75 2,722.77
outstanding towards CCDs
D. Letter of Comfort:
Letter of Comfort against term Loan 65,000.00 65,000.00
a) ONGC Petro addition Limited
Letter of Comfort against NCDs 30,000.00 30,000.00
44.2.4.1 During the Previous year 2019-20, the Company had approved the related party transaction for transfer
of Hazira Dahez Naptha Pipeline (HDNPL) to OPaL on as-is basis for a consideration of `1,653.40
million comprising `1,154.40 million (excludes GST) towards the cost incurred by Company for partially
completed HDNPL pipe line with associated facilities and `499.00 million towards Arbitration award and
other related legal expenses. As the amount of Arbitral award has neither been paid to the contractor
of HDNPL nor deposited with court till date as the same is being contested, the same has not been
invoiced to OPaL. Necessary action will be initiated on receipt of final award.
44.2.5 Transactions with Associates (` in million)

As at March As at March
Name of related party Nature of transaction
31, 2021 31, 2020
A. Services received from:
353
a) Pawan Hans Limited (PHL) Hiring of helicopter services 1,288.38 1,236.59
Purchase of LNG (Net of custom
8,992.74 11,096.15
b) Petronet LNG Limited duty)
Facilities charges 824.79 881.36
B. Services provided to:
a) Pawan Hans Limited (PHL) Miscellaneous receipt - 250.36
C. Income received from:
a) Petronet LNG Limited Dividend Income 2,812.50 1,875.00
D. Investment
a) Rohini Heliport Limited Investment in Equity Shares - 0.05
 THE UNSTOPPABLE
ENERGY SOLDIERS
44.2.6 Outstanding balances with associates (` in million)

As at March 31, As at March 31,

Name of related party Nature of transaction
2021 2020
A. Amount payable:
a) Pawan Hans Limited (PHL) Trade payables 257.38 121.40
b) Petronet LNG Limited Trade payables 573.68 359.77
44.2.7 Transactions with Trusts (` in million)

Year ended March Year ended March

Name of related party Nature of transaction
31, 2021 31, 2020
A. Remittance of payment:
a) ONGC Contributory Provident Fund Trust Contribution 14,387.06 13,140.72
b) ONGC CSSS Trust Contribution 1,099.10 1,116.65
c) ONGC Sahyog Trust Contribution 23.85 24.86
d) ONGC PRBS Trust Contribution 12,166.16 11,413.57
B. Reimbursement of Gratuity payment made on behalf of Trust:
a) ONGC Gratuity Fund Reimbursement 4,649.07 6,530.71
C. Services provided to:
a) ONGC Energy Center Rental income 7.70 -
D. Payment to Trust
a) ONGC Energy Center For research and development 100.00 125.00
b) ONGC Start Up Fund Trust Investment 79.21 -
c) ONGC Foundation CSR Expenditure 282.20 1,161.21
44.2.8 Compensation of key management personnel
(a) Whole-time Directors and Company secretary (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Short term employee benefits 55.33 53.95
Post-employment benefits 6.87 3.66
Long-term benefits 6.09 6.40
354 Total 68.29 64.01
(` in million)

Particulars As at March 31, 2021 As at March 31, 2020

Amount receivable 1.59 1.85
Amount Payable 13.86 13.69
15.45 15.54
(b) Independent directors (` in million)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Sitting fees 1.55 6.05
Total 1.55 6.05
 ANNUAL REPORT
2020-21
44.3 Disclosure in respect of Government related Entities
44.3.1 Name of Government related entities and description of relationship wherein significant amount of
transaction carried out:

Sl. No. Government related entities Relation

1. Indian Oil Corporation Limited Central PSU
2. GAIL (India) Limited Central PSU
3. Bharat Petroleum Corporation Limited Central PSU
4. Chennai Petroleum Corporation Limited Central PSU
5. Numaligarh Refinery Limited Central PSU
6. Kochi Refineries Limited Central PSU
7. Bharat Heavy Electricals Limited Central PSU
8. United India Insurance Company Limited Central PSU
9. Bharat Sanchar Nigam Limited Central PSU
10. Mahanagar Telephone Nigam Limited Central PSU

Standalone Financial Statements

11. Balmer Lawrie & Co. Limited Central PSU
12. Shipping Corporation of India Limited Central PSU
13. Bharat Electronics Limited Central PSU
14. Brahmaputra Cracker and Polymer Limited Central PSU
15. Bharat Pump and Compressor Limited Central PSU
16. Oil India Limited Central PSU
17. Coal India Limited Central PSU
18. North Eastern Electric Power Corporation Limited Central PSU

355

ONGC standalone production in FY’21 stood at 45.35 MMTOE

 THE UNSTOPPABLE
ENERGY SOLDIERS
44.3.2 Transactions with Government Related Entities (` in million)

Year ended Year ended

Name of related party Nature of transaction March 31, March 31,
2021 2020
Sale of products during year to:
Sale of crude oil C2-C3, SKO, HSD &
a) Indian Oil Corporation Limited 226,715.12 261,927.79
LPG and related services
Sale of crude oil C2-C3, SKO, HSD &
b) Bharat Petroleum Corporation Limited 88,503.03 125,340.07
LPG
c) Chennai Petroleum Corporation Limited Sale of crude oil 42,158.73 55,012.99
d) Numaligarh Refinery Limited Sale of crude oil 17,816.43 20,933.18
e) Kochi Refineries Limited Sale of crude oil - 1,566.33
f) GAIL (India) Limited Sale of Natural Gas 98,289.24 159,103.76
g) Brahmaputra Cracker and Polymer Limited Sale of Natural Gas 553.87 903.14
h) North Eastern Electric Power Corporation Limited Sale of Natural Gas 922.61 1,111.08

Purchase of product during year from:

a) Indian Oil Corporation Limited Purchase of Petrol Oil & lubricant 3,354.27 6,105.07
b) Bharat Petroleum Corporation Limited Purchase of Petrol Oil & lubricant 1,547.62 3,012.08
c) GAIL (India) Limited Purchase of LNG 4,457.74 7,299.35
Purchase of drilling rig related items
d) Bharat Heavy Electricals Limited 3,141.51 3,196.92
including spares and related services
e) Numaligarh Refinery Limited Purchase of HSD 63.58 3.84
f) Bharat Electronics Limited Purchase of product 356.61 236.72
g) Bharat Pumps and Compressors Limited Purchase of spare parts 254.79 86.13

Services Received from:

a) United India Insurance Company Limited Insurance premium 1,226.52 1,049.76
b) Balmer Lawrie & Co Limited Travel expenses 399.69 1,273.27
c) Shipping Corporation of India Limited Hiring of vessels 5,321.21 4,708.48
d) Oil India Limited Pipe line service 241.16 241.08
356
Dividend Income received from:
a) Indian Oil Corporation Limited Dividend income 14,040.76 7,020.38
b) GAIL (India) Limited Dividend income 1,089.05 1,586.75

Amount receivable:
a) Indian Oil Corporation Limited Trade & other receivable 22,784.55 11,834.28
b) Bharat Petroleum Corporation Limited Trade & other receivable 8,466.18 5,418.63
c) Chennai Petroleum Corporation Limited Trade & other receivable 6,200.67 2,585.29
d) Numaligarh Refinery Limited Trade & other receivable 1,878.92 1,188.63
 ANNUAL REPORT
2020-21

Year ended Year ended

Name of related party Nature of transaction March 31, March 31,
2021 2020
e) GAIL (India) Limited Trade & other receivable 8,038.28 10,167.71
f) United India Insurance Company Limited Claim receivable (net) 3.07 -
g) Oil India Limited Trade & other receivable 590.71 81.91
h) Brahmaputra Cracker and Polymer Limited Trade & other receivable 397.52 338.79
i) Kochi Refineries Limited Trade & other receivable 9.61 9.61
j) Coal India Limited Trade & other receivable 779.91 848.41

Amount payable:
a) Indian Oil Corporation Limited Trade & other payable 52.74 36.60
b) Bharat Petroleum Corporation Limited Trade & other payable 13.04 265.28
c) GAIL (India) Limited Trade & other payable 153.78 310.68

Standalone Financial Statements

d) Bharat Heavy Electricals Limited Trade & other payable 701.64 337.15
e) Balmer Lawrie & Co Limited Trade & other payable 60.88 24.41
f) Shipping Corporation of India Limited Trade & other payable 1,446.42 304.76
g) Numaligarh Refinery Limited Trade & other payable - 1.50
h) Bharat Electronics Limited Trade & other payable 420.87 226.30
i) Oil India Limited Trade & other payable 47.56 24.67
j) Bharat Pumps and Compressors Limited Trade & other payable 18.52 10.77
The above transactions with the government related entities cover transactions that are significant
individually and collectively. The Company has also entered into other transactions such as telephone
expenses, air travel, fuel purchase and deposits etc. with above mentioned and other various
government related entities. These transactions are insignificant individually and collectively and hence
not disclosed.
45. Financial instruments Disclosure
45.1 Capital Management
The Company’s objective when managing capital is to:
• Safeguard its ability to continue as going concern so that the Company is able to provide maximum
return to stakeholders and benefits for other stakeholders; and 357
• Maintain an optimal capital structure to reduce the cost of capital.
The Company maintains its financial framework to support the pursuit of value growth for shareholders,
while ensuring a secure financial base. In order to maintain or adjust the capital structure, the Company
may adjust the amount of dividends to shareholders, return capital to shareholders, issue new shares
or sell assets to reduce debt.
The capital structure of the Company consists of total equity (refer Note No. 20 & 21). The Company is
not subject to any externally imposed capital requirements.
The management of the Company reviews the capital structure on a regular basis. As part of this review,
the committee considers the cost of capital, risks associated with each class of capital requirements
and maintenance of adequate liquidity.
 THE UNSTOPPABLE
ENERGY SOLDIERS
45.1.1 Gearing Ratio
The Company has outstanding current and non-current borrowings / debt. Accordingly, the gearing
ratio is worked out as followed:
(` in million)

Particulars As at 31 March, 2021 As at 31 March, 2020

Current Borrowings (Note No.27) 86,951.43 117,040.13
Non-Current Borrowings (Note No. 27) 63,275.21 22,450.97
Cash & Bank Balances 3,025.51 9,682.26
Net Debt 147,201.13 129,808.84
Total Equity 2,045,585.66 1,930,948.03
Net Debt to Equity Ratio 7.20% 6.72%
45.2 Categories of financial instruments (` in million)

Particulars As at 31 March, 2021 As at 31 March, 2020

Financial assets
Measured at fair value through profit or loss (FVTPL)
(a) Compulsorily Convertible Preference Share 233.90 220.69
(b) Investment in Equity Shares 0.28 0.33
Measured at amortised cost
(a) Investment in GoI Special Bonds 1,975.08 1,975.08
(b) Trade and other receivables 77,973.25 47,773.93
(c) Cash and cash equivalents 1,200.14 960.25
(d) Other bank balances 1,825.37 8,722.01
(e) Deposit under Site Restoration Fund 233,586.78 221,522.23
(f) Loans 17,108.81 16,942.01
(g) Other financial assets 35,069.56 29,243.88
Measured at FVTOCI
(a) Investments in equity instruments* 152,373.54 125,857.05
Financial liabilities
Measured at amortised cost
358
(a) Short Term Borrowings 86,951.43 117,040.13
(b) Long Term Borrowings 63,275.21 22,450.97
(c) Trade payables 63,766.48 71,136.27
(d) Other financial liabilities
i. Compulsory Convertible Debentures 78,752.21 78,978.23
ii. Financial guarantee contracts 1,226.22 1,345.35
iii. Others 122,903.98 139,839.63
(e) Lease Liabilities 104,210.83 98,265.75

* Investments in equity instruments include strategic investment made during the year in Indian Gas Exchange Limited (IGX) amounting to
`36.94 million measured at FVTOCI, refer note no 11.1.11.
 ANNUAL REPORT
2020-21
45.3 Financial risk management objectives limits for investment of surplus funds
which is reviewed by the Management.
While ensuring liquidity is sufficient to meet
Investments in liquid plan/schemes are
Company’s operational requirements, the
with public sector Asset Management
Company also monitors and manages key
Companies having highest rating. For banks,
financial risks relating to the operations of
only high rated banks are considered for
the Company by analysing exposures by
placement of deposits. Bank balances are
degree and magnitude of risks. These risks
held with reputed and creditworthy banking
include credit risk, liquidity risk and market
institutions.
risk (including currency risk and price risk).
The Company is exposed to default risk in
During the year, the liquidity position of
relation to financial guarantees given to banks
the Company was comfortable. The lines
/ vendors on behalf of subsidiaries / joint
of Credit/short term loan available with
venture companies for the estimated amount
various banks for meeting the short term
that would be payable to the third party for
working capital/ deficit requirements were
assuming the obligation. The Company’s
sufficient for meeting the fund requirements.
maximum exposure in this regard on as at

Standalone Financial Statements

The Company has also an overall limit of
March 31, 2021 is `411,769.54 million (As at
`100,000 million for raising funds through
March 31, 2020 `450,639.15 million).
Commercial Paper. The domestic debt capital
market was tapped by the Company during 45.5 Liquidity risk management
the year by issuance of Non-Convertible
The Company manages liquidity risk by
Debentures (NCD) on private placement
maintaining sufficient cash and cash
basis. Four series of NCDs aggregating
equivalents including bank deposits and
to `41,400 million were issued during the
availability of funding through an adequate
year for meeting the fund requirement of
amount of committed credit facilities to meet
the Company. Cash flow/ liquidity position is
the obligations when due. Management
reviewed on continuous basis.
monitors rolling forecasts of liquidity position
46.4 Credit risk management and cash and cash equivalents on the basis
of expected cash flows. In addition, liquidity
Credit risk arises from cash and cash
management also involves projecting cash
equivalents, investments carried at
flows considering level of liquid assets
amortized cost and deposits with banks as
necessary to meet obligations by matching
well as customers including receivables.
the maturity profiles of financial assets &
Credit risk management considers available
liabilities and monitoring balance sheet
reasonable and supportive forward-looking
liquidity ratios.
information including indicators like external
credit rating (as far as available), macro- The following tables detail the Company’s
economic information (such as regulatory remaining contractual maturity for its non- 359
changes, government directives, market derivative financial liabilities with agreed
interest rate). repayment periods. The information included
in the tables have been drawn up based on
Major customers, being public sector oil
the cash flows of financial liabilities based
marketing companies (OMCs) and gas
on the earliest date on which the Company
companies having highest credit ratings,
can be required to pay. The tables include
carry negligible credit risk. Concentration of
both interest and principal cash flows. The
credit risk to any other counterparty did not
contractual maturity is based on the earliest
exceed 5.67% (Previous year 5.02%) of total
date on which the Company may be required
monetary assets at any time during the year.
to pay.
Credit exposure is managed by counterparty
 THE UNSTOPPABLE
ENERGY SOLDIERS
(` in million)

Less than 1 1 month -1 1 year – 3 More than 3

Total
month year years years
As at March 31, 2021
Trade Payable 63,766.48 - - - 63,766.48
Security Deposits from Contractors
4,156.91 375.93 669.08 3.64 5,205.56
& Customers
Non Current Borrowings# - - 26,400.00 36,875.21 63,275.21
Lease Liabilities# 104,210.83
Current Borrowings - 86,951.43 - - 86,951.43
Compulsory Convertible
- 16,203.56 62,548.65 - 78,752.21
Debentures
Other Financial Liabilities 116,231.94 - - - 116,231.94
Total 184,155.33 103,530.92 89,617.73 36,878.85 518,393.66
Financial Guarantee Obligation* 411,769.54
As at March 31, 2020
Trade Payable 71,136.27 - - - 71,136.27
Security Deposits from Contractors 2,712.10 3,297.11 586.96 2.81 6,598.98
Non Current Borrowings - - - 22,450.97 22,450.97
Lease Liabilities# 98,265.75
Current Borrowing - 117,040.13 - - 117,040.13
Compulsory Convertible
- 74,769.96 4,208.28 - 78,978.23
Debentures
Other Financial Liabilities 132,724.15 - - - 132,724.15
Total 206,572.52 195,107.20 4,795.24 22,453.78 527,194.49
Financial Guarantee Obligation* 450,639.15

*Represents Company’s maximum Limited and ONGC Videsh Vankorneft Ltd.

exposure as on March 31, 2021 in respect of on April 19, 2021 for drawdown in near future.
financial guarantee obligation given to banks
The domestic debt capital market was tapped
/ vendors on behalf of subsidiaries / joint
by the Company during the year by issuance
venture companies for the estimated amount
of Non-Convertible Debentures (NCD) on
that would be payable to the third party for
private placement basis. Four series of
assuming the obligation.
NCDs aggregating to `41,400 million were
360 # refer Note No. 41.2 for Maturity Analysis of issued during the year for meeting the fund
Lease Liabilities and refer Note No. 27.2 & requirement of the Company. Details of
27.4 for Non Current Borrowings. NCDs outstanding as on March 31, 2021 are
given under Note no 27.4.
The Company along with its wholly owned
subsidiary ONGC Videsh Limited, had set up Liabilities for Compulsory Convertible
Euro Medium Term Note (EMTN) Program Debentures (CCDs) represents maturity
for US$ 2 billion on August 27, 2019 which profile against CCDs issued by Subsidiary
was listed on Singapore Stock Exchange Company ONGC Mangalore Petrochemicals
and subsequently on India International Limited (OMPL) amounting to `10,000
Exchange (India INX) and will mature in million (company share 49%) and CCDs
December 05, 2029. The EMTN program issued by Joint Venture Company ONGC
was updated by the Company along with Petro additions Limited (OPaL)amounting to
its wholly owned subsidiaries ONGC Videsh `77,780.00 million refer Note No. 52.
 ANNUAL REPORT
2020-21
The Company has access to committed credit facilities and the details of facilities used are given
below. The Company expects to meet its other obligations from operating cash flows and proceeds of
maturing financial assets.
(` in million)

Unsecured bank overdraft facility, reviewed annually and

As at March 31, 2021 As at March 31, 2020
payable at call:
amount used - -
amount unused# 2,663 2,900
# At the year-end, the cash credit limit was has assessed the possible impact of
`11,023 million (Previous year `13,000 COVID-19 on the basis of internal and
million) considering business requirement of external sources of information and expects
the Company. The cash credit limit of `8,360 no significant impact on the continuity of
million (Previous year `10,100 million) was operations, useful life of Property Plant and
utilised as working capital loan. Equipment, recoverability of assets, trade
receivables etc., and the financial position

Standalone Financial Statements

Besides the above, the Company had
of the Company on a long term basis. The
arrangement for unutilized short term loan
Company is constantly carrying out macro
facilities of `15,833 million as on March 31,
level analysis and keeping a vigilant eye
2021 with other banks.
on global reports & analysis being done by
The Company also had an unutilized limit global analyst & firms.
of `82,500 million (Previous year `90,000
45.7 Foreign currency risk management
million) for raising funds through Commercial
Paper. Sale price of crude oil is denominated in
United States dollar (US$) though billed and
45.6 Market Risk
received in Indian Rupees (`). The Company
Market risk is the risk or uncertainty arising is, therefore, exposed to foreign currency risk
from possible market price movements principally out of ` appreciating against US$.
and their impact on the future performance Foreign currency risks on account of receipts
of a business. The major components of / revenue and payments / expenses are
market risk are commodity price risk, foreign managed by netting off naturally-occurring
currency risk and interest rate risk. opposite exposures through export earnings,
The primary commodity price risks that the wherever possible and carry unhedged
Company is exposed to international crude exposures for the residual considering the
oil and gas prices that could adversely affect natural hedge available to it from domestic
the value of the Company’s financial assets sales.
or expected future cash flows. Substantial The Company undertakes transactions 361
or extended decline in international prices denominated in different foreign currencies
of crude oil and natural gas may have an and consequently exposed to exchange rate
adverse effect on the Company’s reported fluctuations. Exchange rate exposures are
results. managed within approved policy parameters.
The revenue for the year ended March 31, The Company has a Foreign exchange and
2021 are impacted by low crude oil and Interest Risk Management Policy (RMP) with
natural gas prices due to the COVID-19 objective to ensure that foreign exchange
pandemic and volatile global crude oil exposures on both revenue and balance
and natural gas markets. Accordingly, sheet accounts are properly computed,
the same are not comparable with those recorded and monitored, risks are limited to
for the Previous year. The management tolerable levels and an efficient process is
 THE UNSTOPPABLE
ENERGY SOLDIERS
created for reporting of risk and evaluation of swaps) and option contract. FRMC decides
risk management operations. and take necessary decisions regarding
selection of hedging instruments based on
The primary objective of the RMP is limitation /
market volatility, market conditions, legal
reduction of risk and a Forex Risk Management
framework, global events and other macro-
Committee (FRMC) with appropriate authority
economic situations. All the decisions and
and structured responsibility are in place for
strategies are taken in line and within the
the management of foreign exchange risk.
approved Foreign exchange and Interest
The FRMC identifies, assesses, monitor and
Risk Management Policy. Since the company
manage / mitigate appropriately within the
is naturally hedged, hedging decisions are
legal and regulatory framework.
triggered in case of a Net Positive Exposure
The Company has a Hedging policy so that i.e. Outflows in foreign currency equivalent
exposures are identified and measured are more than Inflows in foreign currency
across the Company, accordingly, equivalent. During the year, no hedging
appropriate hedging can be done on decision was necessitated as there was no
net exposure basis. The Company has a Net Positive Exposure.
structured risk management policy to hedge
The carrying amounts of the Company’s
foreign exchange risk within acceptable
foreign currency denominated monetary
risk limit. Hedging instrument includes
assets and monetary liabilities at the end of
plain vanilla forward (including plain vanilla
the reporting period are as under:

(` in million)

Liabilities as at Assets as at
Particulars
As at March 31, 2021 As at March 31, 2020 As at 31 March, 2021 As at March 31, 2020
US$ 128,741.68 198,399.49 8,803.52 5,605.66
GBP 3,185.83 1,464.65 - -
EURO 1,265.03 1,113.84 - -
JPY 435.76 37.69 - -
Others 284.67 74.73 - -
Total 133,912.97 201,090.40 8,803.52 5,605.66

45.7.1 Foreign currency sensitivity analysis As per management’s assessment of

reasonable possible changes in the
The Company is principally exposed to risk
exchange rate of (+/-) 5% between US$-
against US$. Sensitivity of profit or loss arises
` currency pair, sensitivity of profit or loss only
mainly from US$ denominated receivables
on outstanding US$ denominated monetary
362 and payables.
items at the period end is presented below:
(` in million)

US$ sensitivity at year end Year ended March 31, 2021 Year ended March 31, 2020
Assets:
Weakening of ` by 5% 440.18 280.28
Strengthening of ` by 5% (440.18) (280.28)
Liabilities:
Weakening of ` by 5% (6,437.08) (9,919.97)
Strengthening of ` by 5% 6,437.08 9,919.97
 ANNUAL REPORT
2020-21
The Sensitivity of Revenue from operation (net of levies) to change in (+/-) Re. 1 in exchange rate between ` US$ currency
pair is presented as under:
(` in million)
Sensitivity of Revenue from operation (net of levies) 2020-2021 2019-2020
Impact on Revenue from operation (net of levies) for exchange rate (+/-) 7,040.98 (+/-) 10,418.66
In Company’s opinion, the sensitivity analysis classified in the balance sheet either at fair
is unrepresentative of the inherent foreign value through other comprehensive income
exchange risk because the exposure at the (FVTOCI) or at fair value through profit or loss
end of the reporting period does not reflect (FVTPL).
the exposure during the year.
Investment of short-term surplus funds of
45.7.2 Forward foreign exchange contracts the Company in liquid schemes of mutual
funds provides high level of liquidity from a
During the year, the Company has not
portfolio of money market securities and high
entered into any forward foreign exchange
quality debt and categorized as ‘low risk’
contracts.

Standalone Financial Statements

product from liquidity and interest rate risk
45.8 Interest rate risk management perspectives.
The Company is exposed to interest rate risk The revenue from operations of the company
because the Company has borrowed funds are also subject to price risk on account of
benchmarked to overnight MCLR, Treasury change in prices of Crude Oil, Natural Gas &
Bills, debt (capital) market, Mibor, RBI Repo Value Added Products.
and US$ LIBOR. The Company’s exposure
45.9.1 Price sensitivity analysis
to interest rates are detailed in Note No. 27.
The sensitivity of profit or loss in respect of
The Company invests the surplus fund
investments in equity shares at the end of the
generated from operations in term deposits
reporting period for +/-5% change in price
with banks and mutual funds. Bank deposits
and net asset value is presented below:
are made for a period of upto 12 months carry
interest rate as per prevailing market interest Other comprehensive income for the year
rate. Considering these bank deposits are ended March 31, 2021 would increase/
short term in nature, there is no significant decrease by `7,618.68 million (for the year
interest rate risk. Average interest earned ended March 31, 2020 would increase/
on term deposit and a mutual fund for the decrease by `6,292.85 million) as a result of
year ended March 31, 2021 was 4.09% p.a. 5% changes in fair value of equity investments
(Previous year 4.85% p.a.). measured at FVTOCI.
45.9 Price risks The Sensitivity of Revenue from operation 363
(net of levies) to change in (+/-) 1 US$ in
The Company’s price risk arises from
prices of Crude Oil, Natural Gas & Value
investments in equity shares (other than
Added Products (VAP)
investment in group companies) held and

(` in million)

Sensitivity of Revenue from operation (net of levies) 2020-2021 2019-2020

Impact on Revenue from operation (net of levies) for US$ in prices of crude
(+/-) 55,914.20 (+/-) 57,914.67
oil, natural gas & VAP
 THE UNSTOPPABLE
ENERGY SOLDIERS
45.10 Fair value measurement of Financial Instruments
Some of the Company’s financial assets and financial liabilities are measured at fair value at the end
of the financial year. The following table gives information about how the fair values of these financial
assets/ and financial liabilities are determined.
(` in million)

Financial Assets/ Fair value as at Fair value

Valuation technique(s) and key input(s)
(Financial Liabilities) March 31, 2021 March 31, 2020 hierarchy
Investment in Equity
152,336.60 125,857.06 Level 1 Quoted bid prices from Stock exchange-NSE.
Instruments (quoted)
Compulsory Convertible
233.90 220.69 Level 2 Discounted Free Cash Flow Methodology
Preference Shares
Investment in other
Equity Instruments 37.21 0.32 Level 2 Discounted Free Cash Flow Methodology
(unquoted)
Discounted Cash Flows i.e. present value of
Employee Loans 14,014.18 13,911.86 Level 2 expected receipt/payment discounted using
appropriate discounting rate.
Financial Guarantees (1,226.22) (1,345.36) Level 2 Interest Rate Differential Model.
Discounted Cash Flows i.e. present value of
Lease Liabilities (104,210.83) (98,265.75) Level 2 expected receipt/payment discounted using
appropriate discounting rate.
Discounted Cash Flows i.e. present value of
Security Deposits from
(5,142.13) (6,588.05) Level 2 expected receipt/payment discounted using
Contractors
appropriate discounting rate.
Discounted Cash Flows i.e. present value of
Compulsory Convertible
(78,752.21) (78,978.23) Level 2 expected receipt/payment discounted using
Debentures
appropriate discounting rate.

45.11 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair
value disclosures are required)
The Company considers that the carrying amounts of Financial Assets and Financial Liabilities
recognized in the financial statements except as per Note No. 45.10 approximate their fair values.

364
 ANNUAL REPORT
2020-21
46. Disclosure of Interests in Joint Arrangements and Associates:

46.1 Joint Operations Sharing Contracts (PSCs) / Revenue Sharing

Contracts with GoI for operations in India. As
In respect of certain unincorporated PSC/
per signed PSC & JOA, Company has direct
NELP/HELP/CBM blocks, the Company’s
right on Assets, liabilities, income & expense
Joint Operation (JO) with certain body
of blocks. Details of these Joint Operation
corporates have entered into Production
Blocks are as under:

Company’s Participating Interest Others Partners and their PI in

Sl. No. Blocks
As at March 31, 2021 As at March 31, 2020 the JO/Operatorship

A Jointly Operated JOs

Panna, Mukta and Tapti
1 40% 40% BGEPIL 30%, RIL 30%
(Note No. 48.1.1.d)
2 NK-CBM-2001/1 55% 55% IOC 20%, PEPL 25%

Standalone Financial Statements

B ONGC Operated JOs
3 AA-ONN-2001/2 80% 80% IOC 20%
4 CY-ONN-2002/2 60% 60% BPRL 40%
Vedanta Ltd (erstwhile Cairn
5 KG-ONN-2003/1 51% 51%
India Ltd)-49%
6 CB-ONN-2004/1 60% 60% GSPC 40%,
7 CB-ONN-2004/2 55% 55% GSPC 45%
8 CB-ONN-2004/3 65% 65% GSPC 35%
9 CY-ONN-2004/2 80% 80% BPRL 20%
10 MB-OSN-2005-1 80% 80% GSPC 20%
11 Raniganj (Note No. 46.1.10) 74% 74% CIL 26%
12 Jharia (Note No. 46.1.9) 74% 74% CIL 26%
13 BK-CBM-2001/1 80% 80% IOC 20%
14 WB-ONN-2005/4 75% 75% OIL 25%

15 GK-OSN-2009/1 40% 40%

AWEL 20%, GSPC 20%, IOC 365
20%
16 GK-OSN-2010/1 60% 60% OIL-30%, GAIL-10%
17 KG-OSN-2009/2* 90% 90% APGIC-10%
18 MB-OSN-2005/3 70% 70% EEPL-30%
19 KG-OSN-2001/3 80% 80% GSPC-10%, JODPL (10%)
CY-ONHP-2017/1* (Note
20 60% 60% BPRL-40%
No. 46.1.2)
 THE UNSTOPPABLE
ENERGY SOLDIERS

Company’s Participating Interest Others Partners and their PI in

Sl. No. Blocks
As at March 31, 2021 As at March 31, 2020 the JO/Operatorship

C Operated by JO Partners
Vedanta Ltd (erstwhile Cairn
21 Ravva 40% 40% India Ltd) (Operator) 22.5%, VIL
25%, ROPL 12.5%
HEPI (operator)
22 CY-OS-90/1 (PY3) 40% 40% 18%, HOEC 21%
TPL 21%
Vedanta Ltd (erstwhile Cairn
23 RJ-ON-90/1 30% 30% India Ltd) (Operator) 35%, CEHL
35%
Vedanta Ltd (erstwhile Cairn
CB-OS/2 –Development
24 50% 50% India Ltd) (operator) 40% ,
Phase
TPL 10%
HOEC (Operator) 35%, GSPC
25 CB-ON/7 30% 30%
35%
CB-ON/3 – Development
26 30% 30% EOL (Operator)70%
Phase
CB-ON/2- Development GSPC (Operator) 56%, Geo-
27 30% 30%
phase Global Resources 14%

28 AA-ONN-2010/2 30% 30% OIL -50%(Operator), GAIL-20%

29 AA-ONN-2010/3 40% 40% OIL-40%(Operator), BPRL-20%

30 CB-ONHP-2017/9 40% 40% BPRL-60% (Operator)

31 AA-ONHP-2017/10 30% 30% OIL-70% (Operator)
32 AA-ONHP-2017/13 30% 30% OIL-70% (Operator)

* Proposed for relinquishment. Authority of India Limited, GSPC- Gujarat

State Petroleum Corporation Limited, HEPI-
366 Note: There is no change in Previous year
Hardy Exploration & Production India Limited,
details unless otherwise stated.
HOEC- Hindustan Oil Exploration Company
Abbreviations: APGIC- AP Gas Infrastructure Limited, IOC- Indian Oil Corporation
Corporation Limited, AWEL- Adani Welspun Limited, JODPL- Jubilant Offshore Drilling
Exploration Limited, BGEPIL- British Gas Private Limited, OIL- Oil India Limited,
Exploration & Production India Limited, BPRL- PEPL-Prabha Energy Private Limited, RIL-
Bharat Petro Resources Limited, CEHL- Cairn Reliance Industries Limited, ROPL- Ravva
Energy Hydrocarbons Limited, CIL- Coal Oil (Singapore) Private Limited, TPL- Tata
India Limited, EEPL- Essar Exploration & Petrodyne Limited, VIL- Videocon Industries
Production Limited, EOL-Essar Oil Limited, Limited.
EWP – East West Petroleum, GAIL- Gas
 ANNUAL REPORT
2020-21
46.1.1 During the year 2020-21, Company has entered into Revenue Sharing Contracts with Government of
India for 7 blocks acquired under Open Acreage Licensing Policy (OALP) as detailed below:

OALP Participating
S.N. Name of Revenue sharing contracts/Blocks Nature of Activity
Round Interest
1 OALP-V CB-ONHP-2019/2 100% Exploration
2 OALP-V CB-ONHP-2019/1 100% Exploration
3 OALP-V CY-UDWHP-2019/1 100% Exploration
4 OALP-V MB-OSHP-2019/1 100% Exploration
5 OALP-V GS-OSHP-2019/1 100% Exploration
6 OALP-V GK-ONHP-2019/1 100% Exploration
7 OALP-V BP-ONHP-2019/2 100% Exploration

Standalone Financial Statements

46.1.2 During the year, the following ONGC Operated NELP Blocks have been relinquished:

Sl. No. Block Name Round ONGC’s PI-% Partners’ PI-%

1 GK-OSN-2009/2 NELP- VIII 40% AWEL-30%, IOCL-30%,
2 WB-ONN-2005/3 NELP- VII 100% NA
Similarly, in respect of following OLAP Blocks , the proposal for exit has been submitted to DGH:

Sl. No. Block Name ROUND ONGC’s PI-% Partner PI-% Remarks

Since the PEL is not granted for

Onshore part area by State Govt of
1 CY-ONHP-2017/1 OALP-I 60 BPRL-40 Tamil Nadu, proposal for exit from
the block is submitted to DGH on
23.02.2021.
Since the PEL is not granted by State
Govt of Tamil Nadu, proposal for exit
2 CY-ONHP-2018/2 OALP-III 100 Not Applicable
from the block is submitted to DGH on
03.03.2021.
46.1.3 Financial position of the Joint Operation – production sharing contract and in respect of
367
Company’s share are as under: balance 10 (Previous year 9) Joint operation
blocks (JOs/NELP/CBM blocks), the figures
The financial statements of 157 nos. (Previous
have been incorporated on the basis of
year 151), out of 167 nos. (Previous year 160)
uncertified statements prepared under the
Joint operation block (JOs/NELP/HELP),
production sharing contracts. Both the
have been incorporated in the accounts to
figures have been adjusted for changes as
the extent of Company’s participating interest
per Note No. 3.4. The financial positions of
in assets, liabilities, income, expenditure
JO/NELP/HELP are as under:-
and profit / (loss) before tax on the basis
of statements certified in accordance with
 THE UNSTOPPABLE
ENERGY SOLDIERS
As at March 31, 2021 (` in million)

Profit or( Other

Non Total Com-
Current Non Current Current Loss) from Compre-
Particulars Current Revenue prehensive
Assets Assets Liabilities continuing hensive
Liabilities Income
operations Income
NELP -100% PI (9) 372.68 169,392.67 448.44 1,054.62 1,586.75 (14,336.99) (6.22) (14,343.21)
HELP -100% PI (22) 10.44 6.56 0.05 - - (6,791.07) 1.25 (6,789.82)
DSF 100% (5) 7.11 201.85 - 9.65 - (30.62) - (30.62)
NELP/Pre NELP Block with
49,601.78 126,656.60 42,306.93 13,929.17 62,681.07 4,680.56 (0.11) 4,680.45
other partner (28)
HELP Blocks with other
3.75 1.28 163.86 - - (247.55) - (247.55)
partners (3)
Surrendered (100) 819.67 44.76 16,831.37 59.07 - (557.91) - (557.91)
Total (167) 50,815.43 296,303.72 59,750.65 15,052.51 64,267.82 (17,283.58) (5.08) (17,288.66)
Further Break-up of above blocks as under:
Audited (149) 5,919.95 246,009.38 17,452.37 3,806.31 3,507.01 (37,210.77) (5.05) (37,215.82)
Certified (8) #
40,393.31 46,090.75 35,537.64 9,959.69 60,629.92 19,749.54 - 19,749.54
Unaudited (10) 4,502.17 4,203.59 6,760.64 1,286.51 130.89 177.65 (0.03) 177.62
Total (167) 50,815.43 296,303.72 59,750.65 15,052.51 64,267.82 (17,283.58) (5.08) (17,288.66)
#
Certified by other Chartered Accountants as per PSC provisions.
As at March 31, 2020 (` in million)

Profit or Other
Non Total Com-
Current Non Current Current Loss from Compre-
Particulars Current Revenue prehensive
Assets Assets Liabilities continuing hensive
Liabilities Income
operations Income
NELP -100% PI (11) 148.28 127,833.04 437.07 1,079.18 90.91 (16,369.27) (17.06) (16,386.32)
HELP -100% PI (16) 9.65 4.04 0.03 - - (1,673.77) 0.02 (1,673.74)
DSF 100% (5) 3.69 5.63 - - - (1.92) - (1.92)
NELP/Pre NELP Block with
37,836.42 135,458.88 40,573.20 12,784.32 98,093.63 8,442.56 (6.04) 8,436.52
other partner (29)
HELP Blocks with other
368 partners (4)
106.66 1.55 40.55 - - (99.68) - (99.68)

Surrendered (95) 871.59 44.08 16,357.86 59.07 - (998.41) - (998.41)

Total (160) 38,976.29 263,347.23 57,408.70 13,922.57 98,184.54 (10,700.49) (23.08) (10,723.57)
Further Break-up of above blocks as under:
Audited (142) 6,569.68 212,001.11 16,783.57 3,557.70 2,912.51 (31,161.89) (22.71) (31,184.61)
Certified (9) #
31,919.34 49,362.54 37,714.69 9,233.94 95,188.66 20,482.91 - 20,482.91
Unaudited (9) 487.28 1,983.59 2,910.44 1,130.94 83.37 (21.50) (0.37) (21.87)
Total (160) 38,976.29 263,347.23 57,408.70 13,922.57 98,184.54 (10,700.49) (23.08) (10,723.57)
#
Certified by other Chartered Accountants as per PSC provisions
 ANNUAL REPORT
2020-21
46.1.4 Additional Financial information related to Joint Operation blocks are as under:
As at March 31, 2021 (` in million)

Cash and
Current Financial Depreciation and Interest
Particulars Cash Interest Income
Liabilities Amortisation Expense
Equivalents
NELP -100% PI (10) 0.03 333.27 1,289.06 0.19 78.51
HELP -100% PI (22) - 0.05 23.01 0.20 -
DSF 100% (5) - - - 0.25 -
NELP/Pre NELP Block with
334.43 36,037.64 19,774.45 467.36 934.22
other partner (28)
HELP Blocks with other
0.01 163.86 - - -
partners (3)
Surrendered (99) 0.09 16,782.25 (827.48) 0.85 -

Standalone Financial Statements

Total (167) 334.56 53,317.07 20,259.04 468.85 1,012.73
Further Break-up of above blocks as under:
Audited (149) 0.07 16,456.35 14,183.36 1.81 272.02
Certified (8) #
216.49 31,438.66 5,981.28 280.85 664.36
Unaudited (10) 118.00 5,422.06 94.40 186.19 76.35
Total (167) 334.56 53,317.07 20,259.04 468.85 1,012.73
#
Certified by other Chartered Accountants as per PSC provisions.
As at March 31, 2020 (` in million)

Cash and
Current Financial Depreciation and Interest
Particulars Cash Interest Income
Liabilities Amortisation Expense
Equivalents
NELP -100% PI (11) 0.02 333.84 11,263.91 0.16 0.90
HELP -100% PI (16) - 0.03 19.84 0.11 -
DSF 100% (5) - - - 0.23 -
NELP/Pre NELP Block with
445.65 36,825.52 19,457.78 1,209.18 1,830.04
other partner (29)
HELP Blocks with other
- 40.55 32.78 - -
partners (4) 369
Surrendered (95) 0.09 16,303.04 - 18.46 -
Total (160) 445.76 53,502.98 30,774.31 1,228.14 1,830.94
Further Break-up of above blocks as under:
Audited (142) 98.98 15,869.42 21,095.40 13.46 183.81
Certified (9) #
217.60 34,752.49 10,058.11 1,168.51 1,548.25
Unaudited (9) 129.18 2,881.07 (379.20) 46.17 98.88
Total (160) 445.76 53,502.98 30,774.31 1,228.14 1,830.94
#
Certified by other Chartered Accountants as per PSC provisions.
 THE UNSTOPPABLE
ENERGY SOLDIERS
46.1.5 In respect of 1 Pre NELP block (Previous partners on the condition that Focus Energy
year 3) which have expired as at March 31, Limited (Operator) will pay towards 100 %
2021, the Company’s share of Unfinished past royalty obligation, PEL/ML fees, other
Minimum Work Programme (MWP) statutory levies (total amount `2087.50
amounting to `493.81 million (Previous year million as on March 31, 2021) and waive off
`448.91 million) has not been provided for in development/production cost payable by
respect to block AA-ONJ-2. The Company the Company in SGL Field of the block as
has already applied for further extension well as take all future 100% royalty obligation
of period in these blocks as ‘excusable of the Company as licensee. The process
delay’/ special dispensations citing technical of entering into Farm-out Agreement and
complexities, within the extension policy amendment in Production Sharing Contract
of NELP Blocks, including policy for north- (PSC) is under progress. Pending the
east special dispensations, which are under execution of agreements, no adjustment
active consideration of GoI. The delays have is made in the accounts in respect of
occurred generally on account of pending relinquishment of block RJ-ON/6.
statutory clearances from various Govt.
46.1.7 The Company is having 30% Participating
authorities like Ministry of Defence, Ministry
interest in Block RJ-ON-90/1 alongwith
of Commerce & Industry, environmental
Vedanta Limited (erstwhile Cairn India
clearances, State Govt. permissions etc. The
Limited) (Operator) and Cairn Energy
MWP amount of `493.81 million (Previous
Hydrocarbons Limited There are certain
year `448.91 million) is included in MWP
unresolved issues including cost recovery
commitment under Note No. 48.2.2 (i).
and sharing in respect of exploration,
As per the Production Sharing Contracts development and production cost in the
signed by the Company with the GoI, the Block between the Company and Operator
Company is required to complete Minimum of the Block amounting to US$ 1,186.27
Work Programme (MWP) within stipulated million (equivalent to `87,178.90 million) as
time. In case of delay in completion of on March 31, 2020, (based on audited end
the MWP, Liquidated Damages (LD) are of Year Statements provided by Operator).
payable for extension of time to complete The amount under dispute related to cost
MWP. Further, in case the Company does recovery and sharing for FY 2020-21 is yet to
not complete MWP or surrender the block be finalized.
without completing the MWP, the estimated
The Company, as Government nominee
cost of completing balance work programme
under Article 13.2 is liable to contribute its
is required to be paid to the GoI. LD (net
share as per the PI, only for the development
of reversal) amounting to `100.09 million
& production operations, and is not liable
(Previous year ` (226.60) million) and cost
370 of unfinished MWP (net of reversal) `996.96
to share Exploration Cost. However, any
recovery of exploration expenditure by
million (Previous year `35.99 million), paid/
Operator will impact on the share of Cost
payable to the GoI is included in survey and
Oil/Gas available to ONGC. The Operator
wells written off expenditure respectively.
already took recovery of Exploration
46.1.6 Government of India has approved the expenditure of US$ 388.37 Million (incurred
relinquishment of 30% Participating Interest upto Exploration Phase), hence the
(PI) of ONGC in SGL Field with future Company’s liability upto Exploration phase is
interest in block RJ-ON/6 in Jaisalmer Basin NIL. Further, the Operator has also claimed
Rajasthan and assignment of PI to Focus exploration cost (beyond exploration phase
Energy Limited (Operator) and other JV of PSC) of US$ 147.11 million (equivalent to
 ANNUAL REPORT
2020-21
`10,810.91 million) being 30% of US$ 490.36 amount of demand has been increased to
Million (equivalent to `36,036.36 million) from US$ 654.83 million (Companies share US$
the Company upto FY 2019-20 (Previous 196.45 million), based on audit exceptions
year US$ 156.53 million and equivalent for FY 2017-18. The other Partners in the JV
`11,815.26 million) from the Company, have disputed the demand with a Notice of
which in view of Company is not tenable. The Arbitration dated May 14, 2020 against the
Company has shown a sum of US$ 147.11 Government. The Company is not a Party to
million (equivalent to `10,810.91 million) the Arbitration against Government and will
under Contingent Liabilities, as the issues pay the amount, once liability, if any, arises
are presently under Arbitration proceedings. out of the Audit Exceptions is finalized for
the Contractors. The Company share of US$
Pending settlement of issues, an amount of
196.45 million (`14,437.04 million) in the
US$ 133.21 Million (equivalent to `9,789.89
Audit Exceptions has already been shown
million), which is 30% of US$ 444.05 million
under Contingent liabilities.
(equivalent to `32,632.98 million) pertaining
to development and production cost have As all the conditions required for extension

Standalone Financial Statements

been accounted for as per the participating of PSC could not be complied with and
interest of the Company. the Addendum for extension of the PSC
could not be signed by the Contractors and
Royalty on production is being paid by the
Government on or before May 14, 2020,
Company as licensee and the share of JV
Government has allowed the Contractors
Partners of Royalty is recoverable through
to continue the Petroleum operations for
revenue from Sale of Crude Oil and Gas
a period of three months or signing of
as per PSC. Accordingly, an amount of
PSC amendment, whichever is earlier. The
`14,887.03 million outstanding from JV
Government subsequently extended the
Partners has been included in the revenue
period of Petroleum Operations from time
upto March 31, 2021.
to time and currently it is extended upto July
46.1.8 The primary period of twenty five years of the 31, 2021. It is expected that Govt. will further
Production Sharing Contract (PSC) of the extend this period further and the Addendum
Block RJ-ON-90/1 expired on May 14, 2020. for extension of the PSC will be signed by
The Contractors in the Block had applied for all Parties. Accordingly, the accounts of the
extension of the PSC for a period of 10 years, Company’s share in the Block for FY 2020-
which was approved by Government in 21 has been prepared on a ‘going concern’
October 2018 under the pre-NELP Extension basis.
Policy as per notification dated April 7,
46.1.9 In respect of Jharia CBM Block, revised
2017, subject to certain conditions. One
Feasibility Report (FR) has been approved
of the conditions for extension, stipulated
by Government relates to notification of
in the 27th Steering Committee (SC) held on 371
September 9, 2019. In light of better techno-
certain audit exceptions raised for FY 2016-
economics, the Company has decided to
17 as per PSC provisions and requires
implement the revised FR as phases in the
payment of Additional Profit Petroleum, in
light of overlap issue with Bharat Coking
case these exceptions are accepted by
Coal Limited and early implementation and
Contractors. In connection with these audit
monetization. Therefore, Parbatpur and
exceptions, US$ 156.03 million (`11,466.64
adjoining area was taken up in Phase-I
million) relating to the share of Company
under the approved FR and accordingly,
out of total US$ 520.10 million (`38,222.15
implementation strategy for Stage-I has been
million) has been raised by DGH on May 12,
approved by the Company on November
2020. Subsequently in December 2020, the
 THE UNSTOPPABLE
ENERGY SOLDIERS
21, 2019 and 36th Operating Committee overlap area on February 10, 2020 w.e.f.
(OC) meeting for Jharia CBM Block held June 9, 2019. Pending final decision on the
on December 10, 2019. The same was Block, an impairment provision of `617.36
communicated to the Partner, Coal India million has been provided in the books.
Limited (CIL) and was approved by the Board
46.1.11 During the year 2017-18 the Company had
of Directors of CIL in its meeting held on
acquired the entire 80% Participating Interest
January 10, 2020. As per Performa provided
(PI) of Gujarat State Petroleum Corporation
by DGH, all the formalities for enhancement
Limited (GSPC) along with operatorship
of participating interest (PI) from 10% of CIL
rights, at a purchase consideration of US$
to 26% have been completed by both the
995.26 million (equivalent to `62,950.20
Company (Assignor) and CIL (Assignee)
million) for Deen Dayal West (DDW) Field in
and the signed documents were submitted
the Block KG-OSN-2001/3. The revised PI
to DGH for the approval of GoI on January
in the block after above acquisition stands
27, 2020. However, GoI, on the basis of
for the Company 80%, GSPC 10% and
the application and supporting documents
Jubilant Offshore Drilling Private Limited
has granted enhancement of PI of CIL from
(JODPL) 10%.
10% to 26% w.e.f January 25, 2021. This
has been contested by the Company as A farm-in Farm-out agreement (FIFO) was
the provision and timing of exercising the signed with GSPC on March 10, 2017 and
option of enhancing PI from 10% to 26% is the said consideration has been paid on
very clearly defined in the JOA i.e. the option August 04, 2017 being the closing date. In
shall be exercised by CIL before the start the current year 2020-21, accounting for the
of Development Phase. Accordingly, DGH final closing adjustment (i.e., working capital
has been requested to consider April 23, and other adjustments) to sale consideration
2013 as the date of commencement of PI viz. transactions from the economic date up
enhancement, as delay in PI enhancement to the closing date has been provisionally
is primarily due to late submission of carried out and a sum of `946.71 million is
requisite documents by CIL. Considering the net payable to GSPC as final settlement and
provisions of JOA and approval of Steering the same is under deliberation.
Committee, the cash calls amounting to As per FIFO, the Company is entitled
`707.95 million from CIL have been continued to receive sums as adjustments to the
to be recognized at 26% w.e.f. April 23, 2013 consideration already paid based on the
(which is the start date of development phase actual gas production and the differential in
activity) upto January 24, 2021 as against agreed gas price. Pending executing mother
`272.29 million of cash calls at the rate of wells and estimating future production, the
10% PI up to January 24, 2021. contingent adjustment to consideration
372 46.1.10 In respect of Raniganj (N) CBM Block, the remains to be quantified.
Feasibility Report (FR) is under process The Company has also paid part
exploring different variants to optimize the consideration of US$ 200 million (equivalent
cost. Work Program and Budget for RE to `12,650.00 million) for six discoveries other
2020-21, BE 2021-22 have been approved than DDW Field in the Block KG-OSN-2001/3
by the Steering Committee. The issue to GSPC towards acquisition rights for these
of connectivity of proposed locations in discoveries in the Block KG-OSN-2001/3 to
Raniganj with Urja Ganga Pipeline is being be adjusted against the valuation of such
discussed with GAIL (India) Limited, Kolkata. fields based on valuation parameters agreed
Government of West Bengal has granted between GSPC and the Company.
PML for 311.79 Sq. km including the BAPL
 ANNUAL REPORT
2020-21
The JO partner JODPL is under liquidation Company has already submitted the draft
since December 2017 and has defaulted all Management Committee agendas for the
the cash calls since acquisition of the block corresponding blocks for adoption of State
by the Company. The amount of outstanding Bank of India (SBI) reference rate in place of
cash call from JODPL as at March 31, 2021 is Reserve Bank of India (RBI) reference rate for
`1368.26 million. The assignment of JODPL’s preparation of cost recovery statements.
10% PI in accordance with provisions
The management committee (MC) of
of Production sharing Contract (PSC) is
the block named VN-ONN-2009/3 has
pending with Management Committee (MC).
recommended to the Government for
As per provision of the Joint Operating
approval of SBI reference rate in lieu of RBI
Agreement (JOA), the receivable amount
reference rate for the conversion purpose
of `1,368.26 million after the acquisition of
between US$ and ` in modification of
block is required to be contributed by the
provision laid down under the PSC. The
non-defaulting JO Partner in there ration of
MC also recommended that the same may
participating interest. Pending decision of
be extended to other similarly placed PSCs
assignment of JODPL’s PI by MC a provision

Standalone Financial Statements

of the operator. MC further recommended
for an amount of `1,216.23 million has been
that the above dispensation to opt for SBI
made against the said cash call receivables
exchange rate may be made available as
from JODPL, being the company’s share as
one time measure also to other operators,
per PI ratio.
should they opt to do so, provided they have
46.1.12 In case of Joint Venture Block CB- adopted SBI exchange rate at the corporate
ONN-2004/3, the discovery well Uber#2 level.
ceased to flow from June 23, 2020. ONGC
Subsequently, Directorate General of
in consultation with JV partner M/s GSPC
Hydrocarbons (DGH) which is PSC
has initiated a proposal for examination
monitoring arm of the Ministry of Petroleum
/ surrendering the NELP block CB-
and Natural Gas (MoPNG), Government of
ONN-2004/3 and relinquishment of the
India, submitted the proposal for the approval
development area of 10.78 sq. km. The
of MoPNG for adoption of SBI reference rate
Management Committee (MC) in March 2021
in lieu of RBI reference rate for the block VN-
has however advised that immediate action
ONN-2009/3 in May 2020 which is at present
plan be drawn up to revive the field, which
pending with MoPNG.
can include drilling a new development well
in a better part of the reservoir, so that fairly The Company is following the SBI reference
good quantity of gas, as approved in the exchange rates on consistent basis for
FDP, is achieved at the earliest. Accordingly, maintenance of accounts as the main banker
the matter is being examined to achieve the of the Company is State Bank of India, and
there is no impact on the Company financial
373
MC approved production profiles. Pending
assessment of the same, an impairment statements due to adoption of SBI exchange
loss of `369.29 million has been provided in rate, as the transactions of foreign currency
the books. in the Company are recorded at actual cost
basis and foreign currency liabilities & assets
46.1.13 The designated currency, for the purpose
at period end are also recognised as per SBI
of cost recovery under the Production
reference rate. The financial implication for
Sharing Contracts (PSC) is US$. Thus,
adoption of SBI reference rate preparation
the expenditure incurred in Indian Rupees
of cost recovery statements with DGH, as
(`) needs to be converted in US$ for the
against the RBI reference rate is immaterial.
preparation of cost recovery statements. The
 THE UNSTOPPABLE
ENERGY SOLDIERS
47. Disclosure under Indian Accounting are measured in US$. Future cash inflows
Standard 36 – Impairment of Assets from sale of crude oil, natural gas and value
added products have been computed using
47.1 The Company is engaged mainly in the
Management’s estimate of future crude
business of oil and gas exploration and
oil, natural gas and value added products,
production in Onshore and Offshore. In case
discounted applying the rate applicable to
of onshore, the fields are using common
the cash flows measured in US$.
production/transportation facilities and are
sufficiently economically interdependent to 47.4 The outbreak of Covid-19 pandemic globally
constitute a cash generating unit (CGU). and volatility in global crude oil and natural gas
Accordingly, impairment test of all onshore markets has caused significant disturbance
fields is performed in aggregate at the Asset and slowdown of economic activity during
Level. In case of Offshore, a field is generally Previous year. During the year, there has
considered as CGU except for fields which been a rebound in global Crude Oil and
are developed as a Cluster or group of Natural Gas prices due to ease in pandemic
Clusters, for which common facilities are driven lockdown restrictions globally. The
used, in which case the impairment testing Company has considered possible effects
is performed in aggregate for all the fields of regained stability in product market on the
included in the cluster or group of Clusters. recoverability of its Cash Generating Units.
The Company has considered the prevailing
47.2 The Value in Use of producing/developing
business conditions to make an assessment
CGUs is determined under a multi-stage
of future crude oil and natural gas prices
approach, wherein future cash flows are
based on internal and external information
initially estimated based on Proved Developed
/ indicators of future economic conditions.
Reserves. Under the circumstances where
Based on the assessment, the Company
further development of the fields in the
has recorded a net impairment reversal
CGUs are under progress and where the
to the extent the value in use exceeds the
carrying value of the CGUs is not likely to
carrying amount subject to accumulated
be recovered through exploitation of proved
impairment provision and has disclosed
developed reserves alone, the Proved and
the same as an exceptional item amounting
probable reserves (2P) of the CGUs are
to `13,750.34 million (Previous year net
taken for the purpose of estimating future
impairment loss of `48,990.47 million),
cash flows. In such cases, full estimate of
this consist of net impairment reversal at
the expected cost of future development is
Onshore CGUs amounting to `22,599.26
also considered while determining the value
million (Previous year : net impairment loss of
in use.
`28,581.43 million) and net impairment loss
47.3 In assessing value in use, the estimated at Offshore CGUs amounting to `8,848.91
374 future cash flows from the continuing use million (Previous year `20,409.04 million). In
of assets and from its disposal at the end of addition to the aforesaid exceptional item,
its useful life are discounted to their present a net impairment loss of `6,387.41 million
value. The present value of cash flows has (Previous year `16,864.71 million) has
been determined by applying discount rates been provided in CGUs which are already
of 14.29% (as at March 31, 2020: 15.55%) for impaired.
Rupee transactions and 9.60% (as at March
47.5 The following 2P reserves for respective
31, 2020: 10.07%) for crude oil, natural gas
CGU were considered as a basis for the
and value added products revenue, which
impairment testing as at March 31, 2021:
 ANNUAL REPORT
2020-21
Quantity of Reserves used for Impairment
Name of the CGU
Assessment (In MMT)
Assam Onshore Asset 37.82
KG-OSN-2001/3 Block 17.97
Rajahmundry Onshore Asset 13.90
RJ-ON-90/1 Block 13.47
Ratna (Western Offshore) 8.28
WO 16 (Western Offshore) 8.17
B-193 (Western Offshore) 5.86
G-1 GS-15 (Eastern Offshore) 4.16
Silchar Onshore Asset 0.91
Rajasthan Exploratory Asset 0.10
Impairment testing of assets under exploratory phase (Exploratory wells in progress) has been carried
out as on March 31, 2021 and a net impairment loss of `3,772.15 million (Previous year `13,007.51
million) has been provided during the year.

Standalone Financial Statements

48. Contingent Liabilities, Contingent Assets and commitments (to the extent not provided for)
48.1 Contingent Liabilities & Contingent Assets:
48.1.1 Claims against the Company/ disputed demands not acknowledged as debt: -
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
A In respect of Company
I Income Tax 71,389.26 81,268.38
II Excise Duty 7,134.62 6,761.17
III Custom Duty 402.49 400.49
IV Royalty 496.82 496.82
V Cess 6.45 6.45
VI AP Mineral Bearing Lands (Infrastructure) Cess 3,329.74 3,234.71
VII Sales Tax 26,033.00 23,658.51
VIII Service Tax (Note No. 48.1.1.b) 32,726.47 30,084.38
IX GST (Note No. 48.1.1.b) 53,848.14 43,606.42
X Octroi and other Municipal Taxes 72.72 66.89
XI Specified Land Tax (Assam) 12,214.82 11,039.96
XII Claims of contractors (Incl. LAQ) in Arbitration / Court 172,305.08 167,336.70
XIII Employees Provident Fund 66.35 66.35
XIV Others 25,731.33 23,477.47 375
Sub Total (A) 405,757.29 391,504.70
B In respect of Joint Operations
I Income Tax 8.91 8.91
II Municipal Taxes 75.34 -
III Royalty 108.02 108.02
IV Sales Tax 2,621.66 2,621.66
V Service Tax (Note No. 48.1.1.b) 23,973.88 23,702.18
VI GST (Note No. 48.1.1.b) 26,067.62 19,975.87
VII Claims of contractors in Arbitration / Court 9,692.62 9,375.94
VIII Others (Note No. 48.1.1.c & d) 145,207.09 155,817.42
Sub Total (B) 207,755.14 211,610.00
Total (A+B) 613,512.43 603,114.70
 THE UNSTOPPABLE
ENERGY SOLDIERS
a. The Company’s pending litigations comprise their counter affidavit on August 26, 2019. The
claims against the Company and proceedings Company has filed additional grounds to the writ
pending with Tax / Statutory/ Government petition and filed rejoinder to the counter of the
Authorities. After review of all its pending Central Government before Hon. Madras High
litigations and proceedings, the Company has Court on January 24, 2020. The date of next
made adequate provisions, wherever required hearing is not scheduled as yet.
and disclosed the contingent liabilities, wherever
The total estimated amount (including penalty
applicable, in its financial statements. The
and interest up to March 31, 2021) works
Company does not expect the outcome of
out towards Service Tax is `39,604.84 million
these proceedings to have a material impact
(Previous year `39,001.85 million) and GST is
on its financial position. Future cash outflows in
`77,173.72 million (Previous year `61,041.86
respect of the above are determinable only on
million). Since the Company is contesting the
receipt of judgments/ decisions pending with
matter, it has been considered as contingent
various forums/ authorities.
liability. Further, as an abundant caution, the
b. The Company had received demand orders Company has deposited Service Tax and GST
from Service Tax Department at various work along-with interest under-protest amounting to
centres on account of Service Tax on Royalty in `13,524.39 million (Previous year `13,509.56
respect of Crude oil and Natural gas, appeals million) and `56,777.04 million (Previous year
against such orders have been filed before the `45,531.20 million) respectively.
Tribunals. The Ahmedabad Tribunal adjourned
c. There are certain unresolved issues including cost
the matter sine-die vide order dated June 25,
recovery and sharing in respect of exploration,
2019, against which the Company has filed writ
development and production cost in the Block
petition before the Hon’ble Gujarat High Court.
between the Company and Operator - Vedanta
In this matter, Hon’ble Gujarat High Court in the
Limited (erstwhile Cairn India Limited) of the
hearing held on January 04,2021 directed the
Block RJ-ON-90/1. Pending settlement of issues,
revenue authorities to file counter affidavit by
the company has shown an amount of US$
January 21, 2021. The Central Government has
147.11 million - equivalent to `10,810.91 million
filed counter affidavit on January 21, 2021. The
(Previous year: US$ 232.02 million – equivalent
next date of hearing before Hon’ble Gujarat High
to `17,512.87 million) under contingent liability
court is not scheduled as yet. The Company had
as on March 31, 2021. For further details, please
also obtained legal opinion as per which the
refer Note No. 46.1.7.
Service Tax/GST on Royalty in respect of Crude
oil and Natural gas is not applicable. Meanwhile, d. The Company, with 40% Participating Interest
the Company also received demand order dated (PI), was a Joint Operator in Panna-Mukta and
January 01, 2019 on account of GST on Royalty Mid and South Tapti Fields along with Reliance
in the State of Rajasthan against which the Industries Limited (RIL) and BG Exploration
376 Company filed writ petition (4919/2019) before and Production India Limited (BGEPIL) each
Hon’ble High Court of Rajasthan. The Hon’ble having 30% PI, (all three together referred to as
High Court of Rajasthan heard the matter on “Contractors”) signed two Production sharing
April 3, 2019 and issued notice to Department Contracts (PSCs) with Government of India
with a direction that no coercive action shall be (Union of India) on December 22, 1994 for a
taken against the Company. The final hearing has period of 25 years. The PSCs for Panna Mukta
not yet taken place. The Company also filed writ and Mid & South Tapti have expired on December
of mandamus (9961/2019) before the Hon’ble 21, 2019. In terms of the Panna Mukta Field Asset
High Court of Madras seeking stay on the levy Handover Agreement, the Contractors of PMT JV
of GST on royalty. The Hon’ble High Court of are liable for the pre-existing liability.
Madras heard the matter on April 3, 2019 and
In December 2010, RIL & BGEPIL (JV Partners)
issued notice to Central Government and State
invoked an international arbitration proceeding
Government. The Central Government has filed
 ANNUAL REPORT
2020-21
against the Union of India in respect of certain The English Court has delivered its final verdict on
disputes, differences and claims arising out May 2, 2018 following which the Arbitral Tribunal
of and in connection with both the PSCs. The re-considered some of its earlier findings from
Ministry of Petroleum and Natural Gas (MoP&NG), the 2016 FPA (Revised Award). The Government
vide their letter dated July 4, 2011, had directed of India and JV Partners have challenged parts
the Company not to participate in the Arbitration of the Revised Award before English Court. On
initiated by the JV Partners (BGEPIL & RIL). February 12, 2020, the English Court passed
MoP&NG has also stated that the Arbitral Award a verdict favouring the challenges made by
would be applicable to the Company also as a BGEPIL and RIL and also remitted the matter
constituent of the Contractors for both the PSCs. in the Revised Award back to Arbitral Tribunal
for reconsideration. Based on the information
Directorate General of Hydrocarbons (DGH),
shared by BGEPIL in January 2021, the Tribunal
vide letter dated May 25, 2017 had informed
issued a verdict favouring BGEPIL/RIL on the
the Company that on October 12, 2016, a Final
remitted matter, which has been challenged by
Partial Award (FPA) was pronounced by the
the GOI before the English Court. The Challenge
Tribunal in the said arbitrations. As informed by
hearings have been delayed due to COVID-19
BGEPIL, additionally Audit Award on January

Standalone Financial Statements

and are expected to be heard in the latter half of
11, 2018, Agreement Case Award on October 1,
FY 2021-22.
2018 and Jurisdictional Award on March 12, 2019
were wherein the issues relate to the aforesaid Based on the information shared by BGEIPL,
disputes. However, the details of proceedings The GOI has also filed an execution petition
of the FPA and other Orders are not available before the Hon’ble Delhi High Court seeking
with the Company. DGH, vide their letters dated enforcement and execution of the October 12,
May 25, 2017 and June 4, 2018, marked to 2016 FPA. BGEIPL / RIL contend that GOI’s
the Contractors, had directed the payment of execution petition is not maintainable and have
differential Government of India share of Profit opposed the reliefs sought by the GOI under the
Petroleum and Royalty alleged to be payable said petition. The matter is pending before the
by Contractors pursuant to Governments Hon’ble Delhi High Court and no final orders on
interpretation of the FPA (40% share of the the reliefs sought by the GOI have been passed
Company amounting to US$ 1,624.05 million, so far.
including interest up to November 30, 2016)
In January 2018, the Company along with the
equivalent to `119,351.43 million (March 31, 2020:
JV partners has filed an application with MC
`122,583.29 million). In response to the letters of
for increase in CRL in terms of the PSCs. The
DGH, the JV partners (with a copy marked to all
application has been rejected by MC. Pursuant
Joint Venture Partners) had stated that demand
to the rejection, the JV partners have filed a claim
of DGH was premature as the FPA did not make
with Arbitral Tribunal. The CRL increase hearings
any money award in favour of Government of
before the Arbitral Tribunal planned in FY 2020-
India, since quantification of liabilities were to
21 have also been rescheduled to FY 2021-22
377
be determined during the final proceedings of
due to COVID-19.
the arbitration. Further the award had also been
challenged before the English Commercial Court DGH vide letter dated January 14, 2019 has
(London High Court). Based on the above facts, advised to the contractors to re-cast the accounts
the Company had also responded to the letters of for Panna-Mukta and Mid and South Tapti Fields
DGH stating that pending finality of the order, the for the year 2017-18. Pending finalization of the
amount due and payable by the Company was decision of the Arbitral Tribunal, the JV partners
not quantifiable. In view of the Company, if any and the Company had indicated in their letters to
changes are approved for increase in the Cost DGH that the final recasting of the accounts was
Recovery Limit (CRL) by the Arbitral Tribunal as per premature and thus the issues raised by DGH
the terms of the PSCs the liability to Government may be kept in abeyance.
of India (GOI) would potentially reduce.
 THE UNSTOPPABLE
ENERGY SOLDIERS
During the financial year 2010-11, the Oil Marketing which is variable and depends upon the quantity
Companies, nominees of the GoI recovered US$ of minerals gotten or the mineral worked out
80.18 million [Share of the Company US$ 32.07 within a specified period. Whereas rent is the
million (equivalent to `2,356.82 million)] as per amount payable for use and occupation of land.
directives of GoI in respect of Joint Operation Hence, it could be reasonably assumed that for
- Panna Mukta and Tapti Production Sharing the purpose of calculation of stamp duty, amount
Contracts (refer Note No. 15.1). The recovery is of royalty would not form part of the consideration
towards certain observations raised by auditors value of lease deeds to be executed for PML
appointed by DGH under the two PSCs for the granted. Ministry of Petroleum and Natural Gas,
period 2002-03 to 2005-06 in respect of cost and Government of India communicated to the State
profit petroleum share payable to GOI. Government of Tamil Nadu vide letter dated
December, 31, 2014, that royalty should not be
Pending finality by Arbitration Tribunal on various
taken as a basis for fixation of Stamp Duty to the
issues raised above, re-casting of the financial
mining leases granted under the ORD Act read
statements and final quantification of liabilities,
with PNG Rules.
no provision has been accounted in the financial
statements. The demand raised by DGH, The Solicitor General of India, through his opinion
amounting to US$ 1,624.05 million equivalent dated May 05, 2007, had also opined that the
to `119,351.43 million (March 31, 2020: distinction between royalty and rent is well settled.
`122,583.29 million) has been considered as Rent would be payable regardless of whether
contingent liability. The Company’s share of US$ the property is worked upon or not. On the other
32.07 Million (`2,356.82 Million) (March 31, 2020: hand, royalty is a variable figure. It would depend
`2,426.64 Million) recovered by Government of upon the quantity of mineral obtained. If the mine
India has been disclosed at Note No. 15.1. is not worked upon, rent would nevertheless
be payable. Hence, he opined that inclusion of
e. The Company is operating Petroleum Mining
royalty for the purpose of calculation of stamp
Leases (PML) granted by the State Government
duty is unjustified and not tenable. In absence of
(s) after initial clearance from the Government
clarity on the issue the amount of firm liability or
of India (GoI). The grant of oil mining lease is
contingent liability is unascertainable.
regulated and governed by the provisions of
the Oilfields [Regulation and Development] Act 48.1.2 A contingent asset is a possible asset that
1948 (ORD Act). Once the lease order is granted, arises from past events and whose existence
the lessee has to execute lease deeds with the will be confirmed only by the occurrence or
respective State Government. The stamp duty non-occurrence of one or more uncertain
on the executed lease deed is payable as per future events not wholly within the control
the Stamp Act of the respective States. Certain of the entity. During the normal course of
State Governments are of the view to include the business, several unresolved claims are
amount of Royalty apart from other payments currently outstanding. The inflow of economic
378 like Security Deposit, surface rent and dead rent benefits, in respect of such claims cannot be
etc. for the purpose of calculation of stamp duty measured due to uncertainties that surround
under the Stamp Duty Act (s) applicable for such the related events and circumstances.
States. 48.2 Commitments
However, the company is of the view that the 48.2.1 Capital Commitments:
royalty payable by the Company is not a rent to
the State Government(s) but is payable under Estimated amount of contracts remaining to
Rule 14 of the Petroleum and Natural Gas Rules, be executed on capital account: -
1959 (PNG Rules). There is a distinction between i) In respect of Company: `75,813.40 million
the concept of rent and royalty. The word “royalty” (Previous year `87,408.96 million).
signifies in mining lease that part of reddendum
 ANNUAL REPORT
2020-21
ii) In respect of Joint Operations: `104,006.40 `14,986.03 million (Previous year `15,318.90
million (Previous year `141,390.12 million). million).
48.2.2 Other Commitments (ii) In respect of ONGC Petro additions Limited,
(OPaL) a Joint Venture Company `862.81
(i) Estimated amount of Minimum Work
million (Previous year `639.50 million) on
Programme (MWP) committed under various
account of subscription of Share Warrants
‘Production Sharing Contracts’ and ‘Revenue
with a condition to convert it to shares after a
Sharing Contracts’ with Government of India/
balance payment of `0.25 per share.
Nominated Blocks:
(iii) The Company entered into an arrangement
a) In respect of NELP/HELP blocks in which the
for backstopping support towards repayment
Company has 100% participating interest:
of principal and coupon of Compulsory
`41,454.05 million (Previous year `28,381.59
Convertible Debentures (CCDs) amounting
million).
to `77,780.00 million (Previous year
b) In respect of NELP/HELP blocks in Joint `77,780.00 million) issued by ONGC Petro
Operations, Company’s share: `2,339.97 additions Limited in three tranches. The

Standalone Financial Statements

million (Previous year `2,646.45 million). Company is continuing the back stopping
c) In respect of DSF blocks in which the support and the outstanding interest accrued
Company has 100% participating interest: as at March 31, 2021 is `1,926.75 million
(Previous year `2,722.77 million).

49. Disclosure under Guidance Note on Accounting for “Oil and Gas Producing Activities (Ind AS)”
49.1 Company’s share of Proved Reserves on the geographical basis is as under :

Crude Oil Gas Total Oil Equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
Particulars Details
As at March As at March As at March As at March As at March As at March
31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020

Opening 180.33 183.00 181.62 198.91 361.95 381.91

Addition 6.88 11.86 10.85 1.98 17.73 13.84
Offshore Production 13.33 14.53 17.28 19.10 30.61 33.63
Changes* - - - 0.17 - 0.17
Closing 173.88 180.33 175.19 181.62 349.07 361.95
Opening 136.89 140.61 121.53 123.08 258.42 263.69 379
Addition (0.39) 4.67 2.88 4.30 2.49 8.97
Onshore Production 7.80 8.17 5.33 5.58 13.13 13.75
Changes* - (0.22) - (0.27) - (0.49)
Closing 128.70 136.89 119.08 121.53 247.78 258.42
Opening 317.22 323.61 303.15 321.99 620.37 645.60
Addition 6.49 16.53 13.73 6.28 20.22 22.81
Total Production 21.13 22.70 22.61 24.68 43.74 47.38
Changes* - (0.22) - (0.44) - (0.66)
Closing 302.58 317.22 294.27 303.15 596.85 620.37
*Refer Note No. 4.2 (e) for procedure of estimation of reserves.
 THE UNSTOPPABLE
ENERGY SOLDIERS
49.2 Company’s share of Proved Developed Reserves on the geographical basis is as under:

Crude Oil Gas Total Oil Equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
Particulars Details
As at March As at March As at March As at March As at March As at March
31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020
Opening 144.23 130.29 128.50 145.00 272.73 275.29
Addition 3.40 28.47 7.55 2.59 10.95 31.06
Offshore Production 13.33 14.53 17.28 19.09 30.61 33.62
Changes* - - - - - -
Closing 134.30 144.23 118.77 128.50 253.07 272.73
Opening 72.18 103.49 42.78 74.50 114.96 177.99
Addition 1.71 (22.92) 4.88 (25.87) 6.59 (48.79)
Onshore Production 7.80 8.17 5.33 5.59 13.13 13.76
Changes* - (0.22) - (0.26) - 0.48
Closing 66.09 72.18 42.33 42.78 108.42 114.96
Opening 216.41 233.78 171.28 219.50 387.69 453.28
Addition 5.11 5.55 12.43 (23.28) 17.54 (17.73)
Total Production 21.13 22.70 22.61 24.68 43.74 47.38
Changes* - (0.22) - (0.26) - (0.48)
Closing 200.39 216.41 161.10 171.28 361.49 387.69
MMTOE denotes “Million Metric Tonne Oil Equivalent” and for calculating Oil equivalent of Gas, 1000 M3 of Gas has been taken
to be equal to 1 MT of Crude Oil.
* The changes shown above are due Discovered Small Field (DSF) Bid Round – II (2018).
Crude oil production includes wellhead condensate.
Variations in totals, if any, are due to internal summations and rounding off.

380
 ANNUAL REPORT
2020-21
50. Disclosure pursuant to SEBI (Listing obligation and disclosure requirements) Regulations 2015:
(` in million)

Maximum Maximum
Outstanding Amount Outstanding Amount
Particulars as at Outstanding as at Outstanding
March 31, 2021 during the year March 31, 2020 during the year
2020-21 2019-20

(a) Loans to Subsidiaries:* Nil Nil Nil Nil

(b) Loan to Associate: Nil Nil Nil Nil

(c) Loans in the nature of loans to Firms\

companies in which directors are Nil Nil
Nil Nil
interested:

Standalone Financial Statements

* Excludes Current account transactions.
50.1 The Company has not provided any loan or advance in the nature of loan to any of its subsidiary,
associate or firms\ companies in which directors are interested during the current year and the
previous year. Since there is no loan outstanding in the current and previous year, the requirement for
the disclosure of investments made by the loanee in the shares of Parent company and subsidiary
company is not applicable to the company.

381

One of India’s largest agri-solar photo-voltaic power plant by

capacity has been setup at Tatipaka mini-refinery, Andhra Pradesh
 THE UNSTOPPABLE
ENERGY SOLDIERS
51. Disclosure on Foreign currency exposures at the year-end that have not been hedged by derivative
instrument or otherwise are given below
(` in million)
As at March 31, 2021 As at March 31, 2020
Import Creditors Foreign
Foreign Currency Equivalent ` Equivalent `
Currency
United Arab Emirates Dirham- (AED) 0.00 0.02 0.00 0.02
Australian Dollar- $ (AUD) 0.06 3.29 0.07 3.04
Euro - € (EUR) 14.70 1,265.03 13.39 1,113.84
Great Britain Pound- £ (GBP) 31.58 3,185.83 15.72 1,464.65
Japanese Yen- ¥ (JPY) 657.04 435.76 54.11 37.69
Norwegian Krone - kr (NOK) 17.28 148.41 9.86 70.79
Swedish Krona - kr (SEK) 0.03 0.24 0.03 0.21
Singapore Dollar - $ (SGD) 2.41 131.71 0.01 0.67
US Dollar -$ (US$) 792.76 58,259.84 1,002.97 75,703.90
Malaysian ringgit - RM (MYR) 0.06 1.00 - -
Total 63,431.13 78,394.80
Short Term Borrowings
US Dollar (US$) 410.06 30,135.68 1,126.01 84,991.51
Long Term Borrowings
US Dollar (US$) 303.40 22,296.84 303.45 22,904.09
MWP
US Dollar (US$) 203.96 14,988.69 189.30 14,288.12
Cash Call Payable
US Dollar (US$) 41.65 3,060.63 6.78 511.87
Receivables
US Dollar (US$) 99.49 7,311.18 53.96 4,072.91
Cash Call Receivable
US Dollar (US$) 20.31 1,492.34 20.31 1,532.75
382
52. Disclosure as per Ind AS 8 – ‘Accounting and Loss for the year ended March 31, 2020
Policies, Changes in Accounting Estimates for the reasons as stated below.
and Errors’ and Ind AS 1 ‘Presentation of
52.1.1 During the year opinion of Expert Advisory
Financial Statements’.
Committee (EAC) of the Institute of
52.1 In accordance with Ind AS 8 ‘Accounting Chartered Accountants of India was taken
Policies, Changes in Accounting Estimates by the Company’s Subsidiary Mangalore
and Errors’ and Ind AS 1 ‘Presentation of Refinery and Petrochemicals Limited (MRPL)
Financial Statements’, the Company has on the accounting treatment of Compulsory
retrospectively restated its Balance Sheet as Convertible Debentures (CCDs) issued by
at March 31, 2020 and April 1, 2019 (beginning Step down Subsidiary ONGC Mangalore
of the Previous year) and Statement of Profit Petrochemicals Limited (OMPL) in the books
 ANNUAL REPORT
2020-21
of Sponsors (Company and subsidiary MRPL Similarly, the Company has also entered into
are sponsors of the CCDs) amounting to an arrangement for backstopping support
`10,000 million according to their respective towards repayment of principal and coupon
shareholding on the date of issue of CCDs of Compulsory Convertible Debentures
i.e. 49% by the Company and 51% by (CCDs) amounting to `77,780.00 million
MRPL. According to the terms of issue the issued by the Company’s Joint Venture
sponsors are mandatorily required to buy ONGC Petro additions Limited (OPaL) in
out the outstanding debentures and interest, three tranches which were also shown
if any. The backstopping arrangement under Commitments in financial statements.
towards these CCDs were shown under Based on the aforesaid EAC opinion, the
Commitments in financial statements. principal portion of the CCDs have also been
However, based on the EAC opinion, the recognized as financial liability at fair value
Company has recognized a financial liability and a financial guarantee obligation has
at fair value for its share of backstopping been recognized towards coupon amount
support towards repayment of principal and with a corresponding recognition of Deemed
a financial guarantee obligation towards Investment in Joint Venture OPaL.

Standalone Financial Statements

coupon amount with a corresponding
The aforesaid adjustments related to CCDs
recognition of Deemed Investment in its
have been accounted retrospectively as per
stepdown Subsidiary OMPL.
the requirements of Ind AS 8 ‘Accounting
Policies, Changes in Accounting Estimates
and Errors’.

The Reconciliation of financial statement line items which are retrospectively restated are as under:
52.2 Reconciliation of restated items of Balance Sheet as at March 31, 2020 and April 01, 2019
(` in million)

As at March 31, 2020 As at April 1, 2019

Note
Particulars no.
As previously Adjust- As previously
52.5 As restated Adjustments As restated
reported ments reported

Investment 1 724,299.90 66,555.57 7,90,855.47 8,48,815.35 62,347.47 9,11,162.82

Others 2,242,507.58 - 2,242,507.58 2,148,265.08 - 2,148,265.08

Total Assets 2,966,807.48 66,555.57 3,033,363.05 2,997,080.43 62,347.47 3,059,427.90

383
Other equity 1&2 1,880,479.36 (12,432.87) 1,868,046.49 1,954,994.20 (12,624.27) 1,942,369.93

Non-Current Financial liabilities-

1&2 1,562.66 4,209.49 5,772.15 798.39 19,876.52 20,674.91
Others

Current Financial liabilities-Others 1&2 139,612.12 74,778.95 214,391.07 122,437.19 55,095.22 177,532.41

Others 945,153.34 - 945,153.34 918,850.65 - 918,850.65

Total Equity & Liability 2,966,807.48 66,555.57 3,033,363.05 2,997,080.43 62,347.47 3,059,427.90
 THE UNSTOPPABLE
ENERGY SOLDIERS
52.3 Reconciliation of restated items of Statement of Profit and Loss for the year ended March 31, 2020
(` in million)

Note No. As previously

Particulars Adjustments As restated
52.5 reported
Finance Cost 3 28,236.76 4,859.99 33,096.75
Other Income 3 61,050.26 5,051.39 66,101.65
Profit for the year 4 134,445.44 191.40 134,636.84
Total Comprehensive income for the year 4 9,836.36 191.40 10,027.76
Earning Per Share (Basic and Diluted) (in `) 4 10.69 0.01 10.70

52.4 Reconciliation of items of Cash Flows for the year ended March 31, 2020 (` in million)

Note No. As previously

Particulars Adjustments As restated
52.5 reported
Net Profit after tax 4 134,445.44 191.40 134,636.84
Finance Cost 3 28,236.76 4,859.99 33,096.75
Amortization of Financial Guarantee 3 (411.48) (13.12) (424.60)
Gain on revaluation of financial liability towards CCDs 3 - (5,038.27) (5,038.27)
Operating profit before working capital changes 5 517,843.27 - 517,843.27

384

ONGC obtained 10 patents and also filed application for

registration of another 6 patents in FY’21
 ANNUAL REPORT
2020-21
52.5 Notes on restatement extensions of CCDs by `5,038.27 million &
amortization of financial guarantee income
52.5.1 The retrospective restatement of the financial
by `13.12 million.
statement for the year ended March 31,
2020 as per Note no 52.1.1, has resulted 52.5.4 Further there is an increase in profit after tax
in recognition of Deemed Investment in and total Other Comprehensive Income for
Joint Venture OPaL by `62,347.47 million, the previous year 2019 20 by `191.40 million
recognition of Financial liability for CCDs and consequently there is an increase in
by `74,964.79 million (`55,089.39 million Earning per Share from `10.69 per share to
as Current and `19,875.40 million as Non `10.70 per share.
current), Financial guarantee obligation of
52.5.5 The retrospective restatement of the financial
`6.95 million (`5.83 million as Current and
statement as at March 31, 2020 as per Note
`1.12 million as Non current) as at April 1,
no 52.1.1, has no impact on Operating Profit
2019. This has resulted in decrease in other
before working capital changes.
equity by `12,624.27 million as at April 1,
53. Pursuant to completion of tenure in Office

Standalone Financial Statements

2019.
& consequential cessation of Independent
52.5.2 The retrospective restatement of the financial
Directors, the number of Independent
statement for the year ended March 31,2020
Directors on the Board has got reduced to
as per Note no 52.1.1, resulted is a reduction
one (1) w.e.f. September 08, 2020 and there
in recognition of Deemed Investment in
is no woman Independent Director on the
Stepdown Subsidiary OMPL by `4,193.61
Board. This position has been continuing
million, Deemed Investment in Joint Venture
even as on the date of approval of Financial
OPaL by `62,361.96 million, recognition of
Statements for the year ended March 31,
Financial liability for CCDs by `78,978.23
2021. The requirement for filling up the
million (`74,769.96 million as Current and
vacancies for Independent Directors on
`4,208.27 million as Non current), Financial
the Board for compliance of the provisions
guarantee obligation of `10.21 million (`9.00
of the Securities and Exchange Board of
million as Current and `1.21 million as Non
India (Listing Obligations and Disclosure
current). This has resulted in decrease in
Requirement) Regulations, 2015 (Listing
other equity by `12,432.87 million for the
Regulations), DPE Guidelines and the
year ended March 31, 2020. No deferred
Companies Act, 2013 has been taken up
tax has been created against the deemed
with the Government of India from time to
investments as based on information
time.
available it is not probable that the temporary
difference towards the same will reverse in As per the provisions of the Listing 385
the foreseeable future. Regulations, DPE Guidelines and the
Companies Act, 2013, at least two
52.5.3 The retrospective restatement of the financial
independent directors are required for
statement for the year ended March 31,
constituting valid quorum of the Audit
2020 as per Note no 52.1.1, has resulted
Committee, as a result, no Audit Committee
in increase in finance cost by `4,859.99
meeting could be held after September 08,
million due to unwinding of financial liabilities
2020. In absence of the audit committee
for CCDs and increase in Other income
meetings since September 08, 2020, the
by `5,051.39 million on account of Gain
functions of audit committee were taken up
on revaluation of financial liability due to
in the meeting of the Board of Directors.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Accordingly, the Financial Statements for 56. The Company has a system of obtaining
the year ended March 31, 2021 have been periodic confirmation of balances from banks
directly reviewed and approved by the Board and other parties. Further, some balances
of Directors. of Trade and other receivables, Trade and
other payables and Loans are subject to
54. The Company has a system of physical
confirmation/reconciliation. Adjustments, if
verification of Inventory, Property, Plant &
any, will be accounted for on confirmation/
Equipment and Capital Stores in a phased
reconciliation of the same, which will not
manner to cover all items over a period
have a material impact.
of three years. Adjustment differences,
if any, are carried out on completion of 57. Previous year’s figures have been regrouped,
reconciliation. wherever necessary, to confirm to current
year’s grouping.
55. The Company did not have any long term
contracts including derivative contracts for 58. Approval of financial statements
which there were any material foreseeable
The Standalone Financial Statements were
losses.
approved by the Board of Directors on June
24, 2021.

FOR AND ON BEHALF OF THE BOARD

Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G.M. Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No: 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M.No. 048243) Partner (M. No. 093209) Partner (M.No. 084884)
Place: Mumbai Place: New Delhi Place: New Delhi

386 For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 ANNUAL REPORT
2020-21

Standalone Financial Statements

387

ONGC accreted 92.37 MMTOE of In-Place Hydrocarbons (2P) from its fields in FY’21
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Statement Pursuant to Section 129 (AOC-1)

388 389

Statement Pursuant to
390
Section 129 (AOC-1)
Group Performance at a Glance 402
 390
OIL AND NATURAL GAS CORPORATION LTD

ENERGY SOLDIERS
THE UNSTOPPABLE
CIN -L74899DL1993GOI054155

Form- AOC-1
Statement containing salient features of the financial statement of subsidiaries or associate companies or joint ventures as on 31.03.2021
ANNEXURE-C
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Part “A”: Subsidiaries (` in million)
As at 31.03.2021 For the year 2020-21
Sl. Name of the Date since Reporting Reporting Share Reserves Total Total Investments Turnover Profit Provision Profit Proposed Extent of
No. subsidiary when period currency capital & surplus assets Liabilities before for after Dividend share-
subsidiary for the and taxation taxation taxation holding
was subsidiary Exchange (percent-
acquired rate (note age)
3)
1 ONGC Videsh 05.03.1965 31.03.2021 INR 150,000.00 193,187.21 829,283.80 486,096.59 318,270.57 94,676.58 24,566.57 6,297.11 18,269.46 6,000.00 100.00%
Limited

2 Mangalore 30.03.2003 31.03.2021 INR 17,526.64 57,757.02 307,460.62 232,176.96 33,948.43 510,191.92 (3,450.97) (1,046.40) (2,404.57) - 80.72%
Refinery &
Petrochemicals
Limited

3 Hindustan 31.01.2018 31.03.2021 INR 14,524.10 347,337.00 1,312,391.80 950,530.70 146,507.90 2,703,263.20 142,467.90 35,829.10 106,638.80 32,272.00 53.64%
Petroleum
Corporation
Limited

4 ONGC Manga- 28.02.2015 31.03.2021 INR 25,442.91 (32,709.92) 72,920.68 80,187.69 4.80 33,744.18 (5,148.72) (591.47) (4,557.25) - 99.99%
lore Petrochem-
icals Limited

5 ONGC Nile 12.03.2003 31.03.2021 USD 5.30 182,505.57 201,168.30 18,657.43 123,606.75 29,100.25 7,151.32 (636.36) 7,787.68 - 100% for
Ganga B.V. A&B and
77.491% for
Class C

6 ONGC Campos 16.03.2007 31.03.2021 USD 30,989.87 (18,252.56) 28,326.34 15,589.03 - 10,672.89 (982.57) (332.77) (649.80) - 100.00%
Ltda.

7 ONGC Nile 29.02.2008 31.03.2021 USD 4.65 64,121.85 64,845.75 719.25 34,502.53 81.98 (501.03) (43.35) (457.68) - 100.00%
Ganga (San
Cristobal) B.V.
 As at 31.03.2021 For the year 2020-21
Sl. Name of the Date since Reporting Reporting Share Reserves Total Total Investments Turnover Profit Provision Profit Proposed Extent of
No. subsidiary when period currency capital & surplus assets Liabilities before for after Dividend share-
subsidiary for the and taxation taxation taxation holding
was subsidiary Exchange (percent-
acquired rate (note age)
3)
8 ONGC Amazon 08.08.2006 31.03.2021 USD 9,187.21 23,595.16 32,826.58 44.20 31,948.16 - (553.90) - (553.90) - 100.00%
Alaknanda
Limited

9 ONGC Narmada 07.12.2005 31.03.2021 USD 11.44 (2,338.05) 23.21 2,349.83 - - 0.01 - 0.01 - 100.00%
Limited

10 ONGC (BTC) 28.03.2013 31.03.2021 USD 71.56 (29.77) 85.90 44.11 - 135.16 133.26 44.58 88.69 - 100.00%
Limited

11 Carabobo One 05.02.2010 31.03.2021 USD 364.29 3,624.09 4,235.23 246.85 4,232.88 - (7.20) - (7.20) - 100.00%
AB

12 Petro Carabobo 26.02.2010 31.03.2021 USD 1.55 13,030.65 13,311.34 279.15 147.39 - (1.85) - (1.85) - 100.00%
Ganga B.V.

13 Imperial Energy 12.08.2008 31.03.2021 USD 15.91 184,550.05 203,442.74 18,876.77 - 546.98 (18.12) - (18.12) - 100.00%
Limited

14 Imperial Energy 13.01.2009 31.03.2021 USD 0.18 709.18 735.56 26.24 - (0.44) (2.17) - (2.17) - 100.00%
Tomsk Limited

15 Imperial Energy 13.01.2009 31.03.2021 USD 1.89 18,049.39 18,074.73 23.47 - (0.41) (2.07) - (2.07) - 100.00%
(Cyprus) Lim-
ited

16 Imperial Energy 13.01.2009 31.03.2021 USD 1.90 74,970.01 75,069.90 98.06 - (0.42) (2.01) - (2.01) - 100.00%
Nord Limited

17 Biancus Hold- 13.01.2009 31.03.2021 USD 0.15 2,026.41 21,146.85 19,120.28 - 549.80 29.69 - 29.69 - 100.00%
ings Limited

18 Redcliffe Hold- 13.01.2009 31.03.2021 USD 0.19 4,423.96 4,434.15 9.98 - (0.28) (2.07) - (2.07) - 100.00%

ANNUAL REPORT
ings Limited

19 Imperial Frac 13.01.2009 31.03.2021 USD 0.17 91.87 93.15 1.12 - 1.27 0.04 - 0.04 - 100.00%
Services (Cy-
prus) Limited

2020-21
391

Statement Pursuant to Section 129 (AOC-1)

 392
As at 31.03.2021 For the year 2020-21

ENERGY SOLDIERS
THE UNSTOPPABLE
Sl. Name of the Date since Reporting Reporting Share Reserves Total Total Investments Turnover Profit Provision Profit Proposed Extent of
No. subsidiary when period currency capital & surplus assets Liabilities before for after Dividend share-
subsidiary for the and taxation taxation taxation holding
was subsidiary Exchange (percent-
acquired rate (note age)
3)
20 San Agio 13.01.2009 31.03.2021 USD 0.15 (325.98) 1,416.02 1,741.86 - 1.65 (70.20) - (70.20) - 100.00%
Investments
Limited

21 LLC Sibinterneft 13.01.2009 31.03.2021 USD 0.10 (2,010.62) 0.00 2,010.53 - 52.47 6.07 - 6.07 - 55.90%

22 LLC Allian- 13.01.2009 31.03.2021 USD 0.05 (13,112.81) 12,438.64 25,551.43 - 2,415.18 (2,066.44) - (2,066.44) - 100.00%
ceneftegaz

23 LLC Nord 13.01.2009 31.03.2021 USD 0.29 11,218.29 17,289.01 6,070.45 - 1,772.24 (727.07) - (727.07) - 100.00%
Imperial

24 LLC Rus Impe- 13.01.2009 31.03.2021 USD 0.10 (1,298.35) 334.29 1,632.54 - 209.68 (83.48) - (83.48) - 100.00%
rial Group

25 LLC Imperial 13.01.2009 31.03.2021 USD 0.01 327.46 398.80 71.31 - 294.14 (15.77) (0.00) (15.77) - 100.00%
Frac Services

26 Beas Rovuma 07.01.2014 31.03.2021 USD 59,243.37 18,245.85 82,126.27 4,637.05 1,467.56 0.02 (133.84) - (133.84) - 60.00%
Energy Mozam-
bique Ltd.

27 ONGC Videsh 14.08.2014 31.03.2021 USD 149.92 (86.74) 67.56 4.37 - - (46.51) (5.08) (41.43) - 100.00%
Atlantic Inc.

28 ONGC Videsh 15.04.2016 31.03.2021 USD 36.75 62.57 102.12 2.80 36.75 - 178.68 - 178.68 - 100.00%
Singapore Pte.
Ltd.

29 ONGC Videsh 18.04.2016 31.03.2021 USD 36.75 25,326.35 124,766.79 99,403.69 104,915.26 - 2,988.35 (101.31) 2,887.04 - 100.00%
Vankorneft Pte.
Ltd.

30 Indus East 27.02.2018 31.03.2021 USD 20.06 (19.61) 5.44 4.99 - - (2.27) - (2.27) - 100.00%
Mediterranean
Exploration Ltd.
 As at 31.03.2021 For the year 2020-21
Sl. Name of the Date since Reporting Reporting Share Reserves Total Total Investments Turnover Profit Provision Profit Proposed Extent of
No. subsidiary when period currency capital & surplus assets Liabilities before for after Dividend share-
subsidiary for the and taxation taxation taxation holding
was subsidiary Exchange (percent-
acquired rate (note age)
3)
31 ONGC Videsh 15.04.2019 31.03.2021 INR 69,852.74 (36,843.66) 251,588.49 218,579.39 1,467.56 - 512.23 (4,567.39) 5,079.62 - 100.00%
Rovuma Ltd.,
India

32 HPCL Biofuels 31.01.2018 31.03.2021 INR 9,789.50 (7,130.90) 6,826.60 4,168.10 - 1,814.50 (800.70) - (800.70) - 100.00%
Ltd.

33 Prize Petroleum 31.01.2018 31.03.2021 INR 2,450.00 (5,662.60) 3,109.80 6,322.40 - 866.00 (278.20) - (278.20) - 100.00%
Company Ltd.#

34 HPCL Middle 11.02.2018 31.03.2021 Arab 59.20 (38.30) 102.60 57.60 - 91.90 (5.70) - (5.70) - 100.00%
East FZCO Emirates
Dirham
(AED)

35 HPCL Rajasthan 31.01.2018 31.03.2021 INR 17,982.40 (709.90) 56,349.40 39,076.90 - - (619.70) - (619.70) - 74.00%
Refinery Ltd.*

36 HPCL Shapoorji 31.03.2021 31.03.2021 INR 11,720.00 (123.10) 17,144.60 5,547.60 (0.20) (0.20) - 100.00%
Energy Private
Ltd.

37 Petronet MHB 31.01.2018 31.03.2021 INR 5,487.07 583.45 6,763.36 692.84 - 773.64 703.81 185.69 518.12 76.81%
Ltd (PMHBL)
**

Note:
1 Name of subsidiaries which are yet to commence operations:
a) HPCL Rajasthan Refinery Ltd.
b) HPCL Shapoorji Energy Private Ltd. (Acquired as of 30.03.2021, Profits are mentioned accordingly).

ANNUAL REPORT
c) Indus East Mediterranean Exploration Ltd.
2 Name of subsidiaries which is under winding up/liquidated: a) ONGC Videsh Rovuma Ltd., Mauritius.
3 Exchange Rates :

2020-21
393

Statement Pursuant to Section 129 (AOC-1)

 394
For Balance sheet items: 1 USD = `73.49

ENERGY SOLDIERS
THE UNSTOPPABLE
For Profit & loss item: 1 USD = `74.2642
1 AED = `19.904
4 The figures in the table above does not include eliminations of intercompany transactions.
5 # Figures based on Consolidated Financial Statements of the Company.
6 *HPCL Rajasthan Refinery Ltd. is considered as subsidiary as per Sec 2(87) of Companies Act, 2013.
7 ** Petronet MHB Ltd. has been reclassified from joint venture to a subsidiary during the year as the company holds 49.996% ownership interest and its subsidary HPCL holds
49.996% ownership interest.

FOR AND ON BEHALF OF THE BOARD

Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G.M. Kapadia & Co. For R. Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No: 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M.No. 048243) Partner (M. No. 093209) Partner (M.No. 084884)
Place: Mumbai Place: New Delhi Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
Part “B”: Associates and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures (` in million)

Shares of Associate/Joint Ventures

Profit / Loss for the
held by the company at the year end Reason Networth
Date on which Descrip- year
31.03.2021 why attributable
associate tion of
Latest audited Asso- to Share-
Sl. Name of the Joint or joint Amount of how there
Balance Investment
ciate & holding as Not
No. Ventures/Associates venture was Extend of is signif-
Sheet Date in JV not per latest Considered Consid-
associated or Holding icant in-
No.
Associates/ consoli- audited Bal- in Consoli- ered in
acquired Joint
% fluence dation Consol-
dated ance Sheet idation
Venture

Joint Venture

1 Mangalore SEZ Ltd 31.03.2021 24.02.2006 13,000,000 130.00 26.77 Share NA 32.11 (86.03) -
(MSEZ) (note3) holding
more than
20%
2 ONGC Petro Additions 31.03.2021 15.11.2006 997,980,632 9,979.81 49.36 Share NA 25,015.00 (3,937.65) -
Ltd. (OPaL) holding
more than
20%
3 ONGC Tripura Power 31.03.2021 27.09.2004 560,000,000 5,600.00 50.00 Share NA 7,062.32 1,120.74 -
Company Ltd. (OTPC) holding
more than
20%
4 ONGC Teri Biotech Ltd. 31.03.2021 26.03.2007 12,495,000 0.25 49.98 Share NA 356.26 44.08 -
(OTBL) holding
more than
20%
5 Dahej SEZ Limited 31.03.2020 21.09.2004 23,025,000 230.25 50.00 Share NA 1,094.75 179.52 -
(DSEZ)* holding
more than
20%
6 Shell MRPL Aviation 31.03.2021 11.03.2008 15,000,000 150.00 50.00 Share NA 253.30 4.01
Fuels & Services Limited holding

ANNUAL REPORT
(SMASL) more than
20%
7 ONGC Mittal Energy 31.03.2020 26.03.2009 24,990,000 1,836.52 49.98 Share NA (3,964.34) 106.05 -
Limited holding
more than
20%

2020-21
395

Statement Pursuant to Section 129 (AOC-1)

 396
Shares of Associate/Joint Ventures
Profit / Loss for the

ENERGY SOLDIERS
THE UNSTOPPABLE
held by the company at the year end Reason Networth
Date on which Descrip- year
31.03.2021 why attributable
associate tion of
Latest audited Asso- to Share-
Sl. Name of the Joint or joint Amount of how there
Balance Investment
ciate & holding as Not
No. Ventures/Associates venture was is signif-
Sheet Date in
Extend of JV not per latest Considered Consid-
associated or Holding icant in-
No.
Associates/ consoli- audited Bal- in Consoli- ered in
acquired Joint
% fluence dation Consol-
dated ance Sheet idation
Venture

8 Mansarovar Energy 31.03.2019 20.09.2006 6,000 31,948.16 50.00 Share NA 8,114.58 (2,933.68) -
Colombia Limited holding
more than
20%
9 Himalaya Energy 31.12.2014 07.11.2006 45,000 216.40 50.00 Share NA 248.91 (5.37) -
Syria BV holding
more than
20%
10 SUDD Petroleum 31.12.2015 30.04.2012 241.25 0.02 24.13 Share NA 0.07 -
Operating Company holding
more than
20%
11 Hindustan Colas Pvt. Ltd. 31.03.2021 31.01.2018 4,725,000 47.25 50.00 Share NA 2,134.10 775.00 -
holding
more than
20%
12 HPCL-Mittal Energy Ltd. 31.03.2021 31.01.2018 3,939,555,200 39,395.55 48.99 Share NA 52,278.60 1,977.10 -
holding
more than
20%
13 South Asia LPG Co. Pvt. 31.03.2021 31.01.2018 50,000,000 500.00 50.00 Share NA 1,103.40 645.20 -
Ltd. holding
more than
20%
14 Bhagyanagar Gas Ltd. 31.03.2021 31.01.2018 43,650,000 1,282.50 48.73 Share NA 1,725.10 41.80 -
holding
more than
20%
15 Petronet India Ltd.^ 31.03.2021 31.01.2018 16,000,000 1.60 16.00 By virtue NA 4.30 0.10 -
of share-
holding
agree-
ment
 Shares of Associate/Joint Ventures
Profit / Loss for the
held by the company at the year end Reason Networth
Date on which Descrip- year
31.03.2021 why attributable
associate tion of
Latest audited Asso- to Share-
Sl. Name of the Joint or joint Amount of how there
Balance Investment
ciate & holding as Not
No. Ventures/Associates venture was Extend of is signif-
Sheet Date in JV not per latest Considered Consid-
associated or Holding icant in-
No.
Associates/ consoli- audited Bal- in Consoli- ered in
acquired Joint
% fluence dation Consol-
dated ance Sheet idation
Venture

16 HPOIL Gas Pvt Ltd. 31.03.2021 30.11.2018 72,500,000 725.00 50.00 Share NA 699.40 (9.30)
holding
more than
20%
17 Godavari Gas Pvt Ltd. 31.03.2020 31.01.2018 16,074,643 160.70 26.00 Share NA 137.00 (12.30) -
holding
more than
20%
18 Aavantika Gas Ltd. 31.03.2021 31.01.2018 29,557,038 500.22 49.99 Share NA 1,365.70 214.00 -
holding
more than
20%
19 Mumbai Aviation Fuel 31.03.2021 31.01.2018 48,288,750 482.89 25.00 Share NA 872.40 3.90 -
Farm Facilities Pvt. Ltd. holding
more than
20%
20 Ratnagiri Refinery & 31.03.2021 31.01.2018 50,000,000 500.00 25.00 Share NA 319.10 (43.60) -
Petrochemical Ltd. holding
more than
20%
21 IHB Pvt. Ltd. 31.03.2021 09.07.2019 414,500,000 4,145.00 25.00 Share NA 4,147.50 15.60
holding
more than
20%
22 Indradhanush Gas Grid 31.03.2021 10.08.2018 61,000,000 610.00 20.00 Share NA 579.20 4.07 -
Ltd. holding
more than

ANNUAL REPORT
20%

2020-21
397

Statement Pursuant to Section 129 (AOC-1)

 398
Shares of Associate/Joint Ventures
Profit / Loss for the

ENERGY SOLDIERS
THE UNSTOPPABLE
held by the company at the year end Reason Networth
Date on which Descrip- year
31.03.2021 why attributable
associate tion of
Latest audited Asso- to Share-
Sl. Name of the Joint or joint Amount of how there
Balance Investment
ciate & holding as Not
No. Ventures/Associates venture was is signif-
Sheet Date in
Extend of JV not per latest Considered Consid-
associated or Holding icant in-
No.
Associates/ consoli- audited Bal- in Consoli- ered in
acquired Joint
% fluence dation Consol-
dated ance Sheet idation
Venture

Associates
1 Petronet LNG Limited 31.03.2021 02.04.1998 187,500,000 987.50 12.50 By virtue NA 14,758.63 3,674.04 -
(PLL) of share-
holding
agree-
ment
2 Pawan Hans Limited. 31.03.2020 15.10.1985 273,166 2,731.66 49.00 Share NA 4,833.43 (51.64) -
(PHL) holding
more than
20%
3 Rohini Heliport Limited 31.03.2020 07.01.2019 4,900 0.05 49.00 Share NA (0.04) (0.04)
holding
more than
20%
4 Petro Carabobo S.A. 31.03.2019 12.05.2010 1,126,400 4,281.84 11.00 By virtue NA 5,970.23 (51.00) -
of share-
holding
agree-
ment
5 Carabobo Ingeniería y 31.03.2019 21.01.2011 379 0.31 37.90 Share NA 0.31 - -
Construcciones, S.A. holding
more than
20%
 Shares of Associate/Joint Ventures
Profit / Loss for the
held by the company at the year end Reason Networth
Date on which Descrip- year
31.03.2021 why attributable
associate tion of
Latest audited Asso- to Share-
Sl. Name of the Joint or joint Amount of how there
Balance Investment
ciate & holding as Not
No. Ventures/Associates venture was Extend of is signif-
Sheet Date in JV not per latest Considered Consid-
associated or Holding icant in-
No.
Associates/ consoli- audited Bal- in Consoli- ered in
acquired Joint
% fluence dation Consol-
dated ance Sheet idation
Venture

6 Petrolera Indovenezolana 31.03.2021 08.04.2008 40,000 29,872.15 40.00 Share NA 32,673.28 (417.84) -
S.A. holding
more than
20%
7 South-East Asia Gas 30.09.2019 25.06.2010 16,694 1,776.07 8.35 By virtue NA 3,191.72 1,032.02
Pipeline Company of share-
Limited holding
agree-
ment
8 Tamba B.V. 31.12.2019 01.11.2006 1,620 8,181.63 27.00 Share NA 3,882.48 392.38 -
holding
more than
20%
9 JSC Vankorneft 31.03.2020 "15% Ac- 3,092,871 26.00 Share NA 104,178.43 11,145.64 -
quistion - 104,915.26 holding
31.05.2016 more than
11% Ac- 20%
quistion -
28.10.2016"
10 Moz LNG1 Holding 31.12.2020 21.04.2019 31,600,958 2,322.35 16.00 By virtue NA 2,348.09 14.15 -
Company Ltd. of share-

ANNUAL REPORT
holding
agree-
ment

2020-21
399

Statement Pursuant to Section 129 (AOC-1)

 400
Shares of Associate/Joint Ventures
Profit / Loss for the

ENERGY SOLDIERS
THE UNSTOPPABLE
held by the company at the year end Reason Networth
Date on which Descrip- year
31.03.2021 why attributable
associate tion of
Latest audited Asso- to Share-
Sl. Name of the Joint or joint Amount of how there
Balance Investment
ciate & holding as Not
No. Ventures/Associates venture was is signif-
Sheet Date in
Extend of JV not per latest Considered Consid-
associated or Holding icant in-
No.
Associates/ consoli- audited Bal- in Consoli- ered in
acquired Joint
% fluence dation Consol-
dated ance Sheet idation
Venture

11 Falcon Oil & Gas BV 31.03.2021 06.02.2018 40 19,822.55 40.00 Share NA 19,822.55 644.38 -
holding
more than
20%
12 GSPL India Gasnet Ltd. 31.03.2020 31.01.2018 175,122,128 1,751.20 11.00 By virtue NA 1,706.10 17.80 -
of share-
holding
agree-
ment
13 GSPL India Transco Ltd. 31.03.2020 31.01.2018 64,020,000 640.20 11.00 By virtue NA 529.70 (71.60) -
of share-
holding
agree-
ment
Note:
1 Names of associates or joint ventures which are yet to commence operations:
a) IHB Pvt. Ltd.
b) HPCL Shapoorji Energy Ltd. (Become subsidary w.e.f. 31.03.2021)
c) Ratnagiri Refinery & Petrochemicals Ltd.
d) Indradhanush Gas Grid Ltd.
2 Names of associates or joint ventures which have been liquidated or sold during the year: NIL.
3 After considering holding of 0.96% by ONGC Mangalore Petrochemicals Limited.
4 * figures for the DSEZ Ltd. are derived on the basis Limited reviewed finanicial results for FY’21.
5 ^ Petronet India Ltd is in the process of voluntary winding up w.e.f. Augest 30, 2018. Net worth presented above is as per management accounts as of August
30, 2018.

FOR AND ON BEHALF OF THE BOARD

Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G.M. Kapadia & Co. For R. Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No: 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sunil Kumar Agarwal) (Sunil Kumar Gupta)
Partner (M.No. 048243) Partner (M. No. 093209) Partner (M.No. 084884)
Place: Mumbai Place: New Delhi Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Vikas Gupta) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 077076) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021

ANNUAL REPORT
2020-21
401

Statement Pursuant to Section 129 (AOC-1)

 THE UNSTOPPABLE
ENERGY SOLDIERS
ONGC Group Performance at a Glance
(` in million unless otherwise stated) 2020-21* 2019-20* 2018-19* 2017-18* 2016-17 * 2015-16 *
FINANCIAL
Revenue from Operations 3,605,723 4,249,611 4,536,828 3,622,464 3,256,662 1,356,642
Dividend Income 15,405 9,074 15,263 15,987 17,527 10,243
Other Non-operating Income 77,825 81,696 62,036 58,694 75,705 71,205
Total Revenue 3,698,953 4,340,381 4,614,127 3,697,145 3,349,894 1,438,090
Statutory Levies 745,309 524,150 603,591 610,944 651,502 318,823
Operating Expenses ^ 2,294,399 3,078,993 3,079,546 2,368,010 2,024,929 584,655
Exchange Loss - 35,184 13,296 - - 1,033
Exploration costs written off 71,355 90,234 92,206 74,620 52,195 60,785
Profit Before Interest, Depreciation & Tax 587,890 611,820 825,488 643,571 621,268 472,794
(PBIDT)
Depreciation, Depletion, Amortisation and 255,385 266,349 237,037 231,119 202,192 163,840
Impairment
Profit Before Interest & Tax (PBIT) 332,505 345,471 588,451 412,452 419,076 308,954
Finance Costs 50,790 74,893 58,367 49,990 35,911 37,656
Profit before Tax and Exceptional Items 281,715 270,578 530,084 362,462 383,165 271,298
Exceptional item 9,188 (90,285) (15,910) 2,481 5,910 (79,432)
Share of profit/ (loss) of Joint Ventures & 10,194 9,332 34,282 27,132 28,100 8,657
Associates (net)
Profit before Tax 301,096 189,625 548,456 392,075 417,175 200,523
Corporate Tax 87,662 75,062 209,076 131,395 125,484 69,507
Profit after Tax 213,434 114,563 339,380 260,680 291,691 131,016
Profit attributable to Non Controlling interests 50,947 6,527 33,920 39,621 47,499 2,264
Profit attributable to Owners of the Company 162,487 108,036 305,460 221,059 244,192 128,752
Dividend 22,856 72,488 96,407 79,206 112,954 49,194
Tax on Dividend - 13,809 19,153 15,705 22,972 10,005
Share Capital 62,901 62,902 62,902 64,166 64,166 42,778
Net Worth (Equity) 2,209,810 2,051,046 2,169,347 2,040,189 1,943,852 1,978,137
Total Equity including NCI 2,425,968 2,235,103 2,350,409 2,196,249 2,076,772 2,004,655
Long-term Borrowings## 791,621 729,316 521,680 550,249 527,723 402,292
Working Capital (354,981) (497,081) (473,776) (495,362) (535,501) 38,978
Capital Employed 2,028,376 1,981,199 1,950,175 1,844,539 1,649,004 1,756,994
FINANCIAL PERFORMANCE RATIOS
PBIDT to Turnover (%) 16.30 14.40 18.20 17.77 19.08 34.85
PBDT to Turnover (%) 14.90 12.63 16.91 16.39 17.97 32.07
402 Profit Margin (%)- incl. exceptional items 5.64 2.48 6.72 6.45 8.09 9.02
Return on Capital Employed) (%) (ROCE) 15.63 16.98 29.39 21.49 24.35 17.00
Return on Capital Employed) (%) (ROCE)- incl. 16.09 12.42 28.58 21.63 24.71 12.48
exceptional items
Net Profit to Equity (%)- incl. exceptional items 7.35 5.27 14.08 10.84 12.56 6.51
BALANCE SHEET RATIOS
Current Ratio 0.76:1 0.65:1 0.67:1 0.62:1 0.64:1 1.13:1
Debt Equity Ratio
- Long Term Debt to Total Equity Ratio 0.36:1 0.38:1 0.25:1 0.27:1 0.28:1 0.21:1
- Total Debt to Total Equity Ratio 0.49:1 0.52:1 0.46:1 0.48:1 0.39:1 0.23:1
Debtors Turnover Ratio (Days) 15 12 13 15 13 34
PER SHARE DATA
Earning Per Share (`) # 12.92 8.59 23.85 17.23 19.03 10.03
Dividend (%) 72 100 140 132 121 170
Book Value Per Share (`) (Restated)# 176 163 172 159 151 154
 ANNUAL REPORT
2020-21

(` in million unless otherwise stated) 2014-15 2013-14 2012-13 2011-12

FINANCIAL
Income form Operations 1,663,888 1,782,051 1,658,482 1,511,003
Dividend Income 6,074 4,383 3,303 3,974
Other Non-operating Income 53,179 64,516 51,604 43,960
Total Revenue 1,723,141 1,850,950 1,713,389 1,558,937
Statutory Levies 306,836 299,174 284,369 269,402
Operating Expenses ^ 824,585 901,110 824,465 639,629
Exchange Loss/(Gain) (465) (650) 4,206 11,925
Exploration costs written off 109,514 84,881 110,457 105,136
Profit Before Interest, Depreciation & Tax (PBIDT) 482,671 566,435 489,892 532,845
Depreciation, Depletion, Amortisation and Impairment 180,330 166,057 117,633 131,866
Profit Before Interest & Tax (PBIT) 302,341 400,377 372,259 400,979
Finance Cost 28,637 6,243 4,838 4,349
Profit before Tax and Exceptional Items 273,704 394,134 367,421 396,630
Exceptional item - - - 31,405

Group Performance at a Glance

Profit before Tax 273,704 394,134 367,421 428,035
Corporate Tax 96,974 127,604 127,519 143,746
Profit after Tax 176,730 266,530 239,902 284,289
Share of profit/(loss) in Associates for the year (net) 303 118 38 (11)
Profit relating to minority (6,302) 1,583 (2,256) 2,842
Profit after Tax & Minority Interest 183,335 265,065 242,196 281,436
Dividend 81,277 81,277 81,277 83,416
Tax on Dividend 16,317 13,842 13,053 13,611
Share Capital 42,778 42,778 42,778 42,778
Net Worth (Equity) 1,794,742 1,710,556 1,510,417 1,352,666
Total Equity 1,819,473 1,739,676 1,529,883 1,374,906
Long-term Borrowings 475,755 316,809 88,428 52,086
Working Capital 15,427 (44,857) 63,899 96,213
Capital Employed 1,781,995 1,447,991 1,183,203 1,003,223
FINANCIAL PERFORMANCE RATIOS
PBIDT to Turnover (%) 29.01 31.79 29.54 35.26
PBDT to Turnover (%) 27.29 31.44 29.25 34.98
Profit Margin (%)- incl. exceptional items 10.62 14.96 14.47 18.81
Return on Capital Employed) (%) (ROCE) 16.63 27.35 31.18 39.57
Return on Capital Employed) (%) (ROCE)- incl. exceptional items 16.63 27.35 31.18 42.70 403
Net Profit to Equity (%)- incl. exceptional items 10.22 15.50 16.04 20.81
BALANCE SHEET RATIOS
Current Ratio 1.03:1 0.93:1 1.13: 1 1.21:1
Debt Equity Ratio
- Long Term Debt to Equity Ratio 0.27:1 0.2:1 0.06:1 0.04:1
- Total Debt to Equity Ratio 0.3:1 0.28:1 0.13:1 0.12:1
Debtors Turnover Ratio (Days) 38 33 34 28
PER SHARE DATA
Earning Per Share (`) # 14.29 20.65 18.87 21.93
Dividend (%) 190 190 190 195
Book Value Per Share (`) (Restated)# 140 133 118 105
 THE UNSTOPPABLE
ENERGY SOLDIERS
*The figures of FY 2020-21, FY 2019-20 (restated), FY 4. Total Equity = Equity Share Capital + Other Equity
2018-19 (restated), FY 2017-18, FY 2016-17 and FY + Non Controlling Interests
2015-16 (restated Ind AS compliant) are given as per 5. Total Debt = Short Term Borrowings + Long Term
requirment of Ind AS Compliant Schedule-III to the Borrowings + Current Maturities of Long Term
Companies Act, 2013. Figures for 2014-15 are given Debt
as per requirements of Schedule-III to the Companies
6. Profit Margin (%) = Profit after tax for the year
Act, 2013 and figures for FY 2011-12 to FY 2013-14
excluding share of profit/(loss) of joint ventures
are given as per the requirement of revised Schedule
and associates/Turnover
VI to the Companies Act, 1956.
# In accordance with Ind AS 33 ‘Earnings per Share’, 7. Current Ratio = Current Assets including Current
Earnings per share has been adjusted for bonus Investments / Current Liablities
issue and split for all years. The book value per share 8. Long Term Debt to Total Equity = (Long Term
has also been adjusted post bonus & split. Borrowings + Current Maturities of Long Term
^ includes (Accretion) / Decretion in stock, Purchase Debt)/ Total Equity
of Stock in Trade and provisions & write-offs 9. Total Debt to Total Equity = Total Debt /Total Equity
## Pursuant to adoption of Ind AS 116 from April 10. Net Profit to Equity (%) = Profit after Tax attributable
01, 2019, the Finance Lease Obligation classified as to Owners of the Company/ Equity
borrowing has been reclassified to lease liabilities
under Financial liabilities for FY 2018-19 11. Debtor Turnover Ratio (days) = (Average
Receivables/Revenue from Operaions)*365
Note:
12. Earning per share = Profit after Tax attributable to
1. Turnover = Revenue from Operaions Owners of the Company / No. of Equity Shares
2. Capital Employed = Net Working Capital + Net 13. Book value per share = Equity/ No. of Equity
Non Current Assets excluding Capital work in Shares
progress, Exploratory/Developments wells &
Investments 14. ROCE = (PBIT excluding Dividend income) /
Capital Employed.
3. Equity (Net Worth) = (Equity Share Capital
+ Other Equity ) attributable to Owners of the
Company

404

View of Group Gathering Station (GGS) Dabka in Ankleshwar,

Gujarat
 ANNUAL REPORT
2020-21
Statement of Income and Retained Earnings of ONGC Group
(` in million) 2020-21* 2019-20* 2018-19* 2017-18* 2016-17* 2015-16*
REVENUES
Sale of Products 3,588,870 4,227,808 4,515,709 3,606,428 3,232,749 1,348,162
Other Operating Revenue 16,853 21,803 21,119 16,036 23,913 8,480
Total Revenue from Operations 3,605,723 4,249,611 4,536,828 3,622,464 3,256,662 1,356,642
Dividend Income 15,405 9,074 15,263 15,987 17,527 10,243
Other Non-operating Income 77,825 81,696 62,036 58,694 75,705 71,205
Total Revenues 3,698,953 4,340,381 4,614,127 3,697,145 3,349,894 1,438,090
COST & EXPENSES
Operating, Selling & General
Statutory Levies
(a) Royalties 91,385 127,846 147,730 109,379 125,242 99,152
(b) Cess 80,188 107,878 128,568 99,638 89,045 101,916
(c) Excise Duty 565,713 281,985 320,753 395,407 431,601 115,901
(d) Natural Calamity Contingent Duty - Crude 989 1,020 1,063 1,122 1,129 1,137

Group Performance at a Glance

Oil
(e) Octroi & Port Trust Charges # 433 347 322 389 354 333
(f) Other Levies 6,601 5,074 5,155 5,009 4,131 384
Sub-Total (a to f) 745,309 524,150 603,591 610,944 651,502 318,823
(Accretion) / Decretion in stock (99,167) 11,456 (30,956) (82) (47,847) 7,560
Production, Transportation, Selling and 936,170 1,280,146 1,439,817 1,135,340 1,027,440 569,416
Distribution Expenditure
Purchase of Stock-in-Trade 1,445,618 1,760,064 1,654,387 1,216,894 1,041,983 -
Provisions and Write-offs 11,778 27,327 16,298 15,858 3,353 7,679
Exchange Loss - 35,184 13,296 - - 1,033
Exploration Costs Written off
- Survey Costs 19,677 19,015 19,607 15,968 19,019 17,389
- Exploratory Well Costs 51,678 71,219 72,599 58,652 33,176 43,396
Profit Before Depreciation, Interest &Tax 587,890 611,820 825,488 643,571 621,268 472,794
Depreciation, Depletion, Amortisation and 255,385 266,349 237,037 231,119 202,192 163,840
Impairment
Total Cost & Expenses 3,366,448 3,994,910 4,025,676 3,284,693 2,930,818 1,129,136
Profit Before Interest &Tax 332,505 345,471 588,451 412,452 419,076 308,954
Finance Cost 50,790 74,893 58,367 49,990 35,911 37,656
Profit before Tax and Exceptional item 281,715 270,578 530,084 362,462 383,165 271,298
Exceptional item 9,188 (90,285) (15,910) 2,481 5,910 (79,432) 405
Share of profit of Joint Ventures & Associates 10,194 9,332 34,282 27,132 28,100 8,657
Profit before Tax 301,096 189,625 548,456 392,075 417,175 200,523
Corporate Tax ( Net) 87,662 75,062 209,076 131,395 125,484 69,507
Profit after Tax (A) 213,434 114,563 339,380 260,680 291,691 131,016
Other comprehensive income (B) 18,647 (122,321) (8,965) (31,728) 137,070 22,465
Total Comprehensive Income (A) +(B) 232,082 (7,758) 330,415 228,952 428,761 153,481
Profit after tax for the year attributable to:
- Owners of the Company 162,487 108,036 305,460 221,059 244,192 128,752
- Non-controlling interests 50,947 6,527 33,920 39,621 47,499 2,264
Other comprehensive income
- Owners of the Company 17,894 (119,087) (8,531) (31,914) 136,283 22,467
- Non-controlling interests 753 (3,234) (434) 186 787 (2)
 THE UNSTOPPABLE
ENERGY SOLDIERS

(` in million) 2020-21* 2019-20* 2018-19* 2017-18* 2016-17* 2015-16*

Total comprehensive income attributable to:
- Owners of the Company 180,381 (11,051) 296,929 189,146 380,475 151,219
- Non-controlling interests 51,701 3,293 33,486 39,806 48,286 2,262
Retained Earnings at beginning of the year 152,456 204,656 190,809 184,724 100,418 214,095
Effect of restatement - (12,491) (12,551) - 62,524 (91,995)
Retained Earnings at beginning of the year 152,456 192,165 178,258 184,724 162,942 122,100
(restated)
Profit after tax for the year 162,487 108,036 305,460 221,059 244,192 128,752
Other comprehensive income (889) (3,691) (2,912) (534) (3,121) (299)
Other adjustments (including joint ventures & 1,545 (2,690) 681 (420) (132) (24)
associates)
Adjustments due to Cross holding of Investment (1,572) 2,433 (1,001) (2,989) (2,834) -
Preacquistion Adjustment for Bonus share by - - - 2,483 3,311 -
HPCL
Dividend 22,856 72,488 96,407 79,206 112,954 49,194
Tax on Dividend - 13,809 19,153 15,705 22,972 10,005
Transition impact of Ind AS 115 (net of tax) - - 420 - - -
Expenses Related to Buy Back of Shares - - 75 - - -
Transfer from/to legal Reserves (27,436) - 6,890 9,530 581 8,082
Transfer to general Reserve 75,488 50,216 154,592 110,472 64,691 76,067
Transfer from/to Debenture Redemption Reserve 173 2,418 295 (387) 17,482 6,763
Retained Earnings at end of the year 246,090 152,456 204,656 190,809 184,724 100,418

406

A keen eye for detail and the valour to take on challenging

conditions make ONGCians the true energy soldiers of the country
 ANNUAL REPORT
2020-21
Statement of Income and Retained Earnings of ONGC Group

(` in million) 2014-15 2013-14 2012-13 2011-12

REVENUES
Sale of Products 1,645,426 1,769,362 1,649,074 1,501,615
Traded Products 60 44 43 34
Other Operating Revenue 18,402 12,645 9,365 9,354
Total Revenue from Operations 1,663,888 1,782,051 1,658,482 1,511,003
Dividend Income 6,074 4,383 3,303 3,974
Other Non-operating Income 53,179 64,516 51,604 43,960
Total Revenues 1,723,141 1,850,950 1,713,389 1,558,937
COST & EXPENSES
Operating, Selling & General
Statutory Levies
(a) Royalties 141,451 150,102 137,210 155,316
(b) Cess 102,535 99,734 99,971 57,831
(c) Motor Spirit Cess - 3

Group Performance at a Glance

(d) Excise Duty 52,669 37,432 34,732 37,427
(e) Natural Calamity Contingent Duty - Crude Oil 1,123 1,097 1,101 1,097
(f) Sales Tax 2,586 3,123 3,834 3,339
(g) Service Tax 298 439 353 8,337
(h) Education Cess 91 2,348 3,111 1,871
(i) Octroi & Port Trust Charges 6,083 4,896 4,057 4,184
Sub-Total (a to i) 306,836 299,174 284,369 269,402
(Accretion) / Decretion in stock 17,229 (5,285) (11,205) (4,641)
Production, Transportation, Selling and Distribution Expenditure 793,345 898,504 813,428 632,912
Provisions and Write-offs 10,876 10,315 22,243 11,599
Exchange Loss (465) (650) 4,206 11,925
Adjustments relating to Prior Period (Net) 3,135 (2,423) (1) (241)
Exploration Costs Written off
- Survey Costs 20,835 17,471 18,078 14,947
- Exploratory Well Costs 88,679 67,410 92,379 90,189
Profit Before Depreciation, Interest &Tax 482,671 566,435 489,892 532,845
Depreciation, Depletion, Amortisation and Impairment 180,330 166,057 117,633 131,866
Total Cost & Expenses 1,420,800 1,450,573 1,341,130 1,157,958
Operating Income Before Interest &Tax 302,341 400,377 372,259 400,979
Finance Cost 28,637 6,243 4,838 4,349
Profit before Tax and Exceptional item 273,704 394,134 367,421 396,630 407
Exceptional item - - - 31,405
Profit before Tax 273,704 394,134 367,421 428,035
Corporate Tax ( Net) 96,974 127,604 127,519 143,746
Profit after Tax 176,730 266,530 239,902 284,289
Share in Associates for the year 303 118 38 (11)
Profit relating to minority (6,302) 1,583 (2,256) 2,842
Group Profit after Tax 183,335 265,065 242,196 281,436
Profit & Loss Account Balance b/f 233,115 205,773 179,959 144,332
Adjustments due to change in share holding /other adjustment 1 46 59 44
Transfer to Capital Redemption Reserve - - 46 46
 THE UNSTOPPABLE
ENERGY SOLDIERS

(` in million) 2014-15 2013-14 2012-13 2011-12

Dividend 81,277 81,277 81,277 83,416
Tax on Dividend 16,317 13,842 13,053 13,611
Transfer to Self Insurance Reserves 4 - - -
Transfer to general Reserve 80,755 132,250 117,757 144,461
Transfer to Debenture Redemption Reserve 24,003 10,400 4,308 4,319
Retained Earnings at Close 214,095 233,115 205,773 179,959
*The figures of FY 2020-21, FY 2019-20 (restated), FY 2018-19(restated), FY 2017-18, FY 2016-17 and FY 2015-
16 (restated Ind AS compliant) are given as per requirment of Ind AS Compliant Schedule-III to the Companies
Act, 2013. Figures for 2014-15 are given as per requirements of Schedule-III to the Companies Act, 2013 and
figures for FY 2011-12 to FY 2013-14 are given as per the requirement of revised Schedule VI to the Companies
Act, 1956.
# In terms of Para 8 of Ind AS 18 ‘Revenue’ sale of goods has been presented net of sales tax and Octroi for
2016-17 and 2015-16.

408

ONGC registered a revenue of `681,411 million from its

operations in FY’21
 ANNUAL REPORT
2020-21
Statement of Financial Position of ONGC Group
(` in million) 2020-21* 2019-20* 2018-19* 2017-18* 2016-17* 2015-16*
RESOURCES
A. Own
1. Net Worth
(a) Equity
i) Share Capital 62,901 62,902 62,902 64,166 64,166 42,778
ii) Other Equity
- Reserve for equity instruments 102,291 77,221 200,362 215,813 246,864 110,536
through other comprehensive
income (OCI)
- Others 2,044,618 1,910,923 1,906,083 1,760,210 1,632,822 1,824,823
Total other equity 2,146,909 1,988,144 2,106,445 1,976,023 1,879,686 1,935,359
Net worth # 2,209,810 2,051,046 2,169,347 2,040,189 1,943,852 1,978,137
B. Long-term Borrowings 791,621 729,316 521,680 550,249 527,723 402,292
C. Deferred Tax Liability (Net) 427,068 433,745 449,910 398,070 352,172 264,456

Group Performance at a Glance

D. Non-Controlling interests 216,158 184,057 181,062 156,060 132,920 26,518
TOTAL RESOURCES ( A+B+C+D ) 3,644,657 3,398,164 3,321,999 3,144,568 2,956,667 2,671,403
DISPOSITION OF RESOURCES
A. Non-current assets
1. Block Capital (Net)
i) Other Property Plant & Equipment ^ 741,258 741,274 712,382 681,341 667,449 309,498
ii) Oil and Gas Assets ^ 1,392,809 1,400,441 1,443,794 1,430,878 1,296,152 1,198,915
iii) Right of Use Assets 159,064 147,118 - - - -
iv) Intangible assets 8,868 7,641 6,768 6,254 5,749 1,054
v) Investment Properties 79 79 79 79 1 -
Total Block Capital 2,302,078 2,296,553 2,163,023 2,118,552 1,969,351 1,509,467
2. Goodwill on consolidation 135,386 142,367 140,884 142,025 141,904 153,301
3. Financial asssets
a) Trade receivables 25,630 23,741 20,572 16,564 13,630 11,695
b) Loans 28,219 32,146 28,504 20,911 21,546 21,188
c) Deposit with Bank Under Site 235,115 222,836 181,884 160,640 145,943 135,986
Restoration Fund Scheme
d) Others 38,307 41,369 37,275 11,630 9,392 9,660
Total Financial assets 327,271 320,092 268,235 209,745 190,511 178,529
4. Non-current tax assets 95,885 107,600 105,232 108,314 98,720 83,615
5. Other non-current Assets (Excluding 51,143 36,279 44,962 32,400 25,575 15,362 409
Capital Advance)
6. Sub-Total (A) = (1+2+3+4+5) 2,911,763 2,902,891 2,722,336 2,611,036 2,426,061 1,940,274
B. Less: Non-current Liabilities & Provision
a) Lease liabilities## 96,462 80,149 6,053 - - -
b) Financial liabilities 62,867 7,019 8,353 7,310 2,321 1,538
c) Provisions 361,145 331,006 278,499 252,002 231,146 220,487
d) Other non current liabilities 7,932 6,437 5,480 11,823 8,089 233
Sub-Total (B) 528,406 424,611 298,385 271,135 241,556 222,258
Net Non Current Asset (C)=(A)-(B) 2,383,357 2,478,280 2,423,951 2,339,901 2,184,505 1,718,016
 THE UNSTOPPABLE
ENERGY SOLDIERS

(` in million) 2020-21* 2019-20* 2018-19* 2017-18* 2016-17* 2015-16*

D. Net Working Capital
1. Current Assets
i) Inventories 445,733 330,512 351,341 305,571 298,817 99,181
ii) Financial assets
a) Trade Receivables 160,158 91,734 153,965 138,992 125,471 83,317
b) Cash & Bank Balances 71,923 96,402 48,197 50,628 132,126 246,890
c) Loans 7,521 11,821 17,015 12,583 9,927 3,406
d) Others 65,622 115,707 169,288 142,436 110,016 79,004
iii) Others Current Assets 126,709 107,468 81,315 24,085 28,435 42,804
Sub-Total (1) 877,666 753,644 821,121 674,295 704,792 554,602
Less:
II. Current Liabilities
a) Financial liabilities
i) Short-term borrowings 306,576 315,056 493,323 462,212 216,274 43,185
ii) Trade payables 274,491 229,611 305,575 264,847 240,138 297,780
iii) Lease Liabilities## 44,796 51,552 1,017 - - -
iv) Others 460,593 543,047 369,207 322,356 661,557 130,660
b) Other current liabilities 89,978 63,335 69,897 66,659 63,862 21,244
c) Short-term provisions 48,787 41,872 43,825 44,099 49,512 12,309
d) Current tax liabilities (net) 7,426 6,252 12,053 9,484 8,950 10,446
Sub-Total (II) 1,232,647 1,250,725 1,294,897 1,169,657 1,240,293 515,624
Net Working Capital (D)= (1) - (II) (354,981) (497,081) (473,776) (495,362) (535,501) 38,978
E. Capital Employed 2,028,376 1,981,199 1,950,175 1,844,539 1,649,004 1,756,994
F. Investments
i) Non-current Investments 546,046 514,103 618,252 623,352 620,026 303,836
ii) Current Investments 54,176 53,449 50,838 49,994 87,431 30,032
G. Capital Works in Progress (Including 641,953 469,445 311,131 225,378 332,665 329,976
Capital Advance)
H. Intangible assets under development 374,106 379,968 391,603 401,305 267,541 250,565
TOTAL DISPOSITION (E+F+G+H) 3,644,657 3,398,164 3,321,999 3,144,568 2,956,667 2,671,403

410
 ANNUAL REPORT
2020-21
Statement of Financial Position of ONGC Group
(` in million) 2014-15 2013-14 2012-13 2011-12
RESOURCES
A. Own
1. Net Worth
(a) Equity
i) Share Capital 42,778 42,778 42,778 42,778
ii) Reserves & Surplus 1,761,766 1,678,738 1,482,498 1,321,614
Sub-Total 1,804,544 1,721,516 1,525,276 1,364,392
(b) Less: Miscellaneous Expenditure 9,802 10,960 14,859 11,726
Net Worth 1,794,742 1,710,556 1,510,417 1,352,666
B. Long-term Borrowings 475,755 316,809 88,428 52,086
C. Deferred Tax Liability (Net) 181,759 178,635 142,251 121,846
D. Minority Interest 24,731 29,120 19,466 22,240
TOTAL RESOURCES ( A+B+C+D ) 2,476,987 2,235,120 1,760,562 1,548,838
DISPOSITION OF RESOURCES

Group Performance at a Glance

A. Non-current assets
1. Block Capital (Net)
i) Fixed Assets^ 686,712 462,254 406,745 306,080
ii) Oil and Gas Assets/Producing Properties^ 910,049 912,681 705,395 608,004
iii) Intangible assets 1,169 754 1,041 1,364
Total Block Capital 1,597,930 1,375,689 1,113,181 915,448
2. Goodwill on consolidation 201,399 183,545 83,255 77,976
3. Long-term Loans and Advances(Excluding Capital Advance) 94,164 83,077 67,002 51,029
4. Deposit with Bank Under Site Restoration Fund Scheme 136,424 120,830 106,349 94,753
5. Other non-current Assets (Excluding DRE) 71,270 53,474 19,642 20,302
6. Sub-Total= (1+2+3+4+5) 2,101,187 1,816,615 1,389,429 1,159,508
7. Less:Non-current Liabilities & Provision
a. Other Long Term Liabilities 7,625 18,467 17,163 10,758
b. Provision for Abandonment Cost 298,198 274,266 207,255 203,982
c. Long Term Provisions 28,796 31,034 45,707 37,758
Sub-Total (7) 334,619 323,767 270,125 252,498
Net Non Current Asset (A)=(6)-(7) 1,766,568 1,492,848 1,119,304 907,010
B. Net Working Capital
1. Current Assets
i) Inventories 106,198 148,015 127,726 131,680
ii) Trade Receivables 188,158 160,290 153,956 117,181 411
iii) Cash & Bank Balances 160,969 244,801 196,190 278,914
iv) Short-term Loans & Advances 100,174 66,317 59,766 52,210
v) Others Current Assets (Excluding DRE) 9,635 8,135 9,082 19,643
Sub-Total (1) 565,134 627,558 546,720 599,628
Less:
2. Current Liabilities
i) Short-term borrowings 53,448 139,073 115,271 100,538
ii) Trade payables 304,660 306,803 186,148 176,036
iii) Other current liabilities 168,205 217,039 170,869 202,917
iv) Short-term provisions 23,394 9,500 10,533 23,924
Sub-Total (2) 549,707 672,415 482,821 503,415
Net Working Capital 15,427 (44,857) 63,899 96,213
 THE UNSTOPPABLE
ENERGY SOLDIERS

(` in million) 2014-15 2013-14 2012-13 2011-12

C. Capital Employed 1,781,995 1,447,991 1,183,203 1,003,223
D. Investments
i) Non-current Investments 47,470 47,205 20,453 20,412
ii) Current Investments 22 254 829 8,795
E. Capital Works in Progress (Including Capital Advance) 435,533 557,603 419,676 399,855
F. Exploratory/Development Wells in Progress 211,967 182,067 136,401 116,553
TOTAL DISPOSITION (C+D+E+F) 2,476,987 2,235,120 1,760,562 1,548,838
* The figures of FY 2020-21, FY 2019-20 (restated), FY 2018-19(restated) , FY 2017-18, FY 2016-17 and FY 2015-
16 (restated Ind AS compliant) are given as per requirment of Ind AS Compliant Schedule-III to the Companies
Act, 2013. Figures for 2014-15 are given as per requirements of Schedule-III to the Companies Act, 2013 and
figures for FY 2011-12 to FY 2013-14 are given as per the requirement of revised Schedule VI to the Companies
Act, 1956.
# Includes reserve for equity instruments through other comprehensive income
^ Note: As on transition date 1st April 2015, carrying value of assets pertaining to production & allied facilities
has been regrouped from other Property Plant and Equipment to “Oil and Gas Assets” to reflect the aggregate
amount of Oil and Gas Assets.
## Pursuant to adoption of Ind AS 116 from April 01, 2019, the Finance Lease Obligation classified as borrowing
has been reclassified to lease liabilities under Financial labilties for FY 2018-19

412

ONGC supplied NATO Grade HSD to Indian Navy during pandemic

to meet an urgent requirement for Samudra Setu mission
 ANNUAL REPORT
2020-21

Group Performance at a Glance

413

Focus on early monetization - 12 discoveries were monetized in FY’21 including 2 from

the same year
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS 2020-21

Independent Auditors’ Report on Consolidated

Financial Statements
414 415

Independent Auditors’ Report on

416
Consolidated Financial Statements
Consolidated Financial Statements 432
 THE UNSTOPPABLE
ENERGY SOLDIERS

Independent Auditors’ Report

To the Members of Oil and Natural Gas Corporation Limited

Report on the Audit of the Consolidated Financial 2. Basis for Opinion

Statements
We conducted our audit of the consolidated
1. Opinion financial statements in accordance with the
Standards on Auditing (SAs) specified under
We have audited the accompanying consolidated
section 143(10) of the Act. Our responsibilities
financial statements of Oil and Natural Gas
under those Standards are further described
Corporation Limited (“the Holding Company”)
in the Auditor’s Responsibilities for the Audit of
and its subsidiaries (Holding Company and its
the Consolidated Financial Statements section
subsidiaries together referred to as “the Group”),
of our report. We are independent of the Group,
joint ventures and associates, which comprise
its joint ventures and associates in accordance
the Consolidated Balance Sheet as at March 31,
with the Code of Ethics issued by the Institute
2021, the Consolidated Statement of Profit and
of Chartered Accountants of India together with
Loss (including Other Comprehensive Income),
the ethical requirements that are relevant to our
the Consolidated Statement of Changes in
audit of the consolidated financial statements
Equity and the Consolidated Statement of Cash
under the provisions of the Act and the Rules
Flows for the year then ended, and notes to the
made thereunder, and we have fulfilled our other
consolidated financial statements, including a
ethical responsibilities in accordance with these
summary of significant accounting policies and
requirements and the Code of Ethics. We believe
other explanatory information (hereinafter referred
that the audit evidence we have obtained, and
to as “the consolidated financial statements”).
the audit evidence obtained by the other auditors
In our opinion and to the best of our information in terms of their reports referred into Para 5(v) of
and according to the explanations given to us the Other Matters paragraph below, is sufficient
and based on the consideration of reports of and appropriate to provide a basis for our opinion
other auditors on separate financial statements on the consolidated financial statements.
and on the other financial information of the
3. Emphasis of Matter
subsidiaries, joint ventures and associates, the
aforesaid consolidated financial statements give We draw attention to following Notes of the
the information required by the Companies Act, Consolidated Financial Statements:-
2013 (“the Act”) in the manner so required and
i. Note No. 65 which states that the Holding
give a true and fair view in conformity with the
Company’s Board does not have the requisite
Indian Accounting Standards specified under
number of Independent Directors and also
section 133 of the Act read with the Companies
416 does not have a woman Independent director
(Indian Accounting Standards) Rules, 2015,
from September 8, 2020, as required by the
as amended (‘Ind AS’) and other accounting
provisions of the Securities Exchange Board
principles generally accepted in India, of the
of India (Listing Obligations and Disclosure
consolidated state of affairs of the Group, its
Requirement) Regulations, 2015, Department
joint ventures and associates as at March 31,
of Public Enterprises (DPE) Guidelines and
2021 and its consolidated profit (including other
the provisions of the Act, so as to constitute
comprehensive income), consolidated changes
proper Board of the Directors and its sub-
in equity and consolidated cash flows for the year
committees, which inter alia includes the Audit
then ended.
Committee. As a result, in the absence of valid
 ANNUAL REPORT
2020-21
quorum, no Audit Committee’s meetings have have challenged parts of the Revised Award
been convened after September 8, 2020, and before English Court. On February 12, 2020,
in such circumstances, as implied from the the English Court passed a verdict favouring
said Note, the mandatory functions of the the challenges made by BGEPIL and RIL and
Audit Committee, such as review of quarterly also remitted the matter in the Revised Award
results/annual financial statements, approval back to Arbitral Tribunal for reconsideration.
of related party transactions etc., have been In January 2021, the Tribunal issued a verdict
directly carried out by the Board of Directors favouring BGEPIL/RIL on the remitted matter,
of the Holding Company. Accordingly, the which has been challenged by the GOI before
enclosed Consolidated Financial Statements the English Court. Pending finalization of the
have been directly approved by the Holding decision of the Arbitral Tribunal, the Holding
Company’s Board of Directors. Company has indicated in its letters to DGH
that the final recasting of the accounts is
ii. Note No. 58.1.4, wherein it is stated that

Independent Auditors’ Report on Consolidated

premature and the issues raised by DGH may
Directorate General of Hydrocarbons (DGH)
be kept in abeyance and therefore no provision
had raised a demand on all the JV partners
for the same has been considered necessary
under the Production Sharing Contract with
and has been disclosed as contingent liability.
respect to Panna-Mukta and Mid and South
Tapti contract areas (PMT JV), being BG iii. Note No.58.1.2, with respect to demand
Exploration and Production India Limited orders served on various work centres of the

Financial Statements
(BGEPIL) and Reliance Industries Limited Holding Company by tax authorities under
(RIL) (together “the Claimants”) and the Service Tax (ST) and Goods & Service Tax
Holding Company (all three together referred (GST) demanding ST and GST on Royalty in
to as “Contractors”), towards differential GOI respect of Crude Oil and Natural Gas. Based
share of Profit Petroleum and Royalty alleged on the legal opinion, the Holding Company
to be payable by contractors pursuant to is contesting such demands and estimated
Government’s interpretation of the Final Partial amounts worked out towards ST and GST
Award of Arbitral Tribunal (40% share of the (including interest and penalty upto March 31,
Holding Company amounting to USD 1624.05 2021) of `39,604.84 million and `77,173.72
million equivalent to `119,351.43 million, million respectively (Total `1,16,778.56 million),
including interest upto 30th November, 2016). which has been considered as contingent
Subsequent to Tribunal Orders dated October liability. As a measure of abundant caution, the
12, 2016, DGH vide letters dated May 25, Holding Company has deposited ST and GST
2017, June 4, 2018 and January 14, 2019 had along with interest under protest amounting
asked contractor for re-casting of accounts of to `13,524.39 million and `56,777.04 million
the PMT JV and for remitting the respective PI respectively (Total `70,301.43 million).
share of balance dues including interest till the
iv. Refer Note No. 15.5 regarding receivables
date of remittance. As the Holding Company
is not a party to the arbitration, the details of
from Government of Sudan amounting to 417
`29,000.60 million have been assessed for
the proceedings of arbitration and copy of the
lifetime expected credit loss method and during
order of London High Court are not available
the year a reversal of provision of `4,472.86
with the Holding Company. The Holding
million has been made. The total outstanding
Company has responded that The English
provision against these receivables stands
High Court has delivered its final verdict
at `3,347.79 million. There is a significant
on May 2, 2018 following which the Arbitral
estimation uncertainty and future events can
Tribunal re-considered some of its earlier
have a significant impact on the valuation/
findings from the 2016 FPA (Revised Award);
recoverability of these receivables.
The Government of India and JV Partners
 THE UNSTOPPABLE
ENERGY SOLDIERS
v. Note No. 37.4, which describes the Holding statements for the year ended March 31, 2021.
Company’s managements’ assessment of the These matters were addressed in the context of
impact of COVID-19 pandemic on the basis our audit of the consolidated financial statements
of internal and external sources of information as a whole, and in forming our opinion thereon,
on its business, operation and other related and we do not provide a separate opinion
components. As stated in the said Note, the on these matters. For each matter below,
Holding Company’s management expects no description of how the matter was addressed
significant impact of COVID-19 on the affairs in our audit is provided in that context. We have
of the group on a long term basis. determined the matters described below to be
the key audit matters to be communicated in our
Our opinion on the Consolidated Financial report. Considering the requirement of Standard
Statements is not modified in respect of these on Auditing (SA 600) on ‘Using the work of
matters. Another Auditor’ including materiality, below
4. Key Audit Matters Key Audit Matters have been reproduced from
the Independent Auditors’ report on the audit of
Key audit matters are those matters that, in our Standalone Financial Statements of the Holding
professional judgment, were of most significance Company:
in our audit of the consolidated financial

418

Micro-wave communications are essential to maintain critical contact

with onshore bases and are lifelines of ONGC offshore operations
 ANNUAL REPORT
2020-21

Key Audit Matter How our audit addressed the matter

Modified Audit Procedures necessitated Due to the restrictions imposed, the audit
pursuant to outbreak of COVID-19 pandemic: processes were largely carried remotely by us
from our respective places.
Due to continuing spread of COVID-19 pandemic
and the consequential restrictions imposed by The Holding Company has provided / shared with
Central / various State Governments / Authorities us the necessary books of accounts, records,
extended from time to time during the year 2020- documents etc. through digital medium such as
21 and thereafter, the audit could not be carried e-mails, file sharing through Video Conferencing
by visiting the respective Assets/ Basins/ Plants/ and remote / VPN access over secured network
Units/ Offices / other Business areas/Corporate to SAP, Web-Ice, BI platform, ICFR Portal, shared
Office of the Holding Company. Accordingly, common drives etc. To this extent, the audit
this extraordinary situation due to Covid-19 has processes were carried out on the basis of

Independent Auditors’ Report on Consolidated

necessitated modification of our audit procedures verification of such books of accounts, records,
so as to carry out the audit remotely through online documents etc. made available to us as above,
access / receipt of digital documents. In view of which were relied upon as audit evidence for
this extraordinary situation due to Covid-19, we conducting the audit and reporting for the current
have identified such Modified Audit Procedures as period.
a Key Audit Matter.
Accordingly, we modified our audit procedures as

Financial Statements
follows:
a. Conducted verification of necessary books
of accounts, records, documents etc.
maintained by the respective Assets/ Basins/
Plants/ Units/ Offices / other Business areas/
Corporate Office etc. of the Holding Company
through digital medium and remote electronic
access as mentioned above.
b. Carried out verification of scanned copies of
the documents, evidences, deeds, certificates
and the related records made available to us
by the Holding Company through aforesaid
digital medium.
c. Making enquiries and gathering necessary
audit evidence through Video Conferencing,
dialogues and discussions over phone calls,
e-mails and similar communication channels. 419
d. Resolution of our audit observations through
electronic and other telecommunication media
instead of a physical meetings and interaction
with the designated officials.
e. We have also relied upon and performed
our audit procedures in accordance with the
Advisories and Key considerations issued
by the Institute of Chartered Accountants of
India on the various Accounting and Auditing
aspects impacted by COVID-19.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Key Audit Matter How our audit addressed the matter

Evaluation of adequacy of provision for Our audit procedures included the following:
impairment for tangible and intangible assets
We evaluated the appropriateness of Holding
(Refer Note 57 to the Consolidated Financial Company’s management’s identification of the
Statements) CGUs and exploration and evaluation assets and
Management of the Holding Company has tested the operating effectiveness of controls over
assessed whether any provision needs to be the impairment assessment process, including
recognised on account of impairment of tangible indicators of impairment.
and intangible assets held by the Holding We reviewed the reasonableness of the judgments
Company. and decisions made by the Holding Company’s
The Holding Company reviews the carrying amount management regarding assumptions (including
of its tangible and intangible assets (Oil and Gas the relevant regulatory guidelines) for Oil and
Assets including Capital Work-in-Progress (CWIP) Gas prices in future to identify whether there
& Development Wells in Progress (DWIP), Other are indicators of possible management bias
Property, Plant & Equipment (including Capital and accordingly relied upon the management’s
Works-in-Progress, Right of Use Assets) for the assumptions for Oil and Gas prices in future.
“Cash Generating Unit” (CGU) determined at the
We reviewed the appropriateness of discount rates
end of each reporting period to assess whether
used in the estimation.
there is any indication that those assets have
suffered any impairment loss. We relied on the technical assessment of the
Oil and Gas price assumptions have a significant Holding Company’s Management with regard to
impact on CGU impairment assessments and the Reserves and the Production profile of Oil and
are inherently uncertain. Furthermore, oil and gas Gas, as shown to us by the management.
prices are subject to increased uncertainty, given We performed testing of the mathematical
regulatory guidelines including notified gas prices, accuracy of the cash flow models and checked
climate change and the global energy transition. the appropriateness of the related disclosures.
The Holding Company’s management’s We evaluated Holding Company’s management’s
assumptions for prices of oil and gas in future assessment and related calculations of impairment
are highly judgemental and may not be reflective including comparison of the recoverable amount
of above factors, leading to a risk of material with the carrying amounts of respective CGUs in
misstatement. the books of accounts.
Given the long timeframes involved, certain We perused the future plans related to exploration
recoverable amounts of assets are sensitive to the activities. Further, we have relied upon Holding
discount rate applied. Since the determination of Company’s management’s assessment that the
appropriate discount rate is judgemental, there is Mining Lease (ML)/ Petroleum Mining Lease (PML)
420 a risk that discount rates may not reflect the return shall be re-granted, wherever expired/ is expiring
required by the market and the risks inherent in the in near future
cash flows being discounted, which may lead to a
material misstatement.
A key input to impairment assessments and
valuations is the production forecast, in turn
closely related to the Holding Company’s reserves
estimates, production profile and field development
assumptions with reference to Oil and Gas.
 ANNUAL REPORT
2020-21

Key Audit Matter How our audit addressed the matter

The determination of recoverable amount, being
the higher of fair value less costs to sell and value-
in use is based on the factors as discussed above,
necessitating judgement on the part of Holding
Company’s management.
In case of exploration and evaluation assets,
based on management’s judgement, assessment
for impairment is carried out when further
exploration activities are not planned in near future
or when sufficient data indicate that although a
development is likely to proceed, the carrying

Independent Auditors’ Report on Consolidated

amount of the exploration asset is unlikely to be
recovered in full from successful development
or by sale. Based on the above factors, we have
considered the measurement of Impairment as
Key Audit Matter.
Estimation of Decommissioning liability Our audit procedures included the following:

Financial Statements
(Refer Note 32 to the Consolidated Financial Evaluated the approach adopted by the
Statements) management in determining the expected costs of
The Holding Company has an obligation to restore decommissioning.
and rehabilitate the Asset/fields operated upon Identified the cost assumptions used that have
by the Holding Company at the end of their use. the most significant impact on the provisions and
This decommissioning liability is recorded based tested the appropriateness of these assumptions.
on estimates of the costs required to fulfill this
obligation. Reviewed the appropriateness of discount and
inflation rates used in the estimation.
The provision is based upon current cost
estimates and has been determined on a Verified the unwinding of interest as well as
discounted basis with reference to current legal understanding if any restoration was undertaken
requirements and technology. At each reporting during the year.
date the decommissioning liability is reviewed and We have relied upon the technical assessment
re-measured in line with changes in observable with respect to the Production Profile as estimated
assumptions, timing and the latest estimates of by the management based on which the Terminal
the costs to be incurred at reporting date.
year of the Asset /fields for decommissioning has
We have considered the measurement of been estimated. 421
decommissioning costs as Key Audit Matter as
We have relied upon management’s assessment
it requires significant management judgment,
that the Mining Lease (ML) / Petroleum Mining
including accounting calculations and estimates
Lease (PML) would be re-granted, till the terminal
that involves high estimation uncertainty.
year of the field as estimated by the management.
Relied on the judgments of the internal/ external
experts for the purpose of technical /commercial
evaluation.
Assessed the appropriateness of the disclosures
made in the financial statements.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Key Audit Matter How our audit addressed the matter

Litigations and Claims Our audit procedures included the following:
(Refer Note 58 to the Consolidated Financial Understood the Holding Company’s
Statements) Management’s internal instructions, process
Litigation and claims are pending with multiple tax and control for determining and estimating the
and regulatory authorities and there are claims tax litigations, other litigations and claims and its
from vendors/suppliers and employees which appropriate accounting and/or disclosure.
have not been acknowledged as debt by the Tested key controls surrounding such litigations.
Holding Company (including Joint Operations of
the Holding Company). Discussed pending matters with the Holding
Company’s personnel with respect to status of
In the normal course of business, financial cases of litigation and claims.
exposures may arise from pending legal/regulatory
proceedings and from above referred claims not Assessed Holding Company’s management’s
acknowledged as debt by the Holding Company. conclusions through understanding precedents
Whether a claim needs to be recognized as set in similar cases, including placing reliance
liability or disclosed as a contingent liability in upon the expert opinions, wherever obtained by
the Consolidated Financial Statements or is the Holding Company’s management.
considered as remote, is dependent on a number
We have assessed the adequacy and
of significant assumptions and judgments made
appropriateness of presentation and disclosure
by the management. The amounts involved are
of the Contingent liabilities in the Consolidated
potentially significant and determining the amount,
Financial Statements.
if any, to be recognized or disclosed in the financial
statements, is inherently subjective.
We have considered Litigations and claims as Key
Audit Matter because the estimates on which these
amounts are based involve a significant degree
of management judgment, including accounting
estimates that involves high estimation uncertainty.

5. Other Matters blocks under New Exploration Licensing Policy

(NELP)/ Hydrocarbon Exploration and Licensing
i. We have placed reliance on technical/commercial
Policy (HELP) / Discovered Small Fields (DSFs)/
evaluation by the Holding Company’s
Open Acreage Licensing Policy (OALPs) and
management in respect of categorization of
Joint Operations (JO) accounts for exploration
wells as exploratory, development, producing
422 and production out of which:
and dry well, allocation of cost incurred on
them, production profile, proved (developed and a. 8 NELPs/ HELPs/ JOs accounts have been
undeveloped)/ probable hydrocarbon reserves, certified by other Chartered Accountants.
and depletion thereof on Oil and Gas Assets, In respect of these 8 NELPs/ HELPs/ JOs,
impairment, liability for decommissioning costs, Consolidated Financial Statements include
liability for NELP and nominated blocks for under proportionate share in assets and liabilities as
performance against agreed Minimum Work on March 31, 2021 amounting to `86,484.06
Programme million and `45,497.33 million respectively
and revenue and profit including other
ii. As mentioned in Note No. 53.1.3, the comprehensive Income for the year ended
Consolidated Financial Statements include the March 31, 2021 amounting to `60,629.92
Holding Company’s share in the total value of million and `19,749.54 million respectively,
assets, liabilities, expenditure and income of 167 Our opinion is based solely on the certificate
 ANNUAL REPORT
2020-21
of the other Chartered Accountants. to `130.89 million and `177.62 million
respectively, Our opinion is based solely on
b. 10 NELPs / HELPs/ JOs have been certified
holding company’s management certified
by the holding company management in
accounts.
respect of NELPs / HELPs/ JOs operated
by other operators. In respect of these 10 iii. We did not audit the financial statements of four
NELPs / HELPs/ JOs, Consolidated Financial subsidiaries whose financial statements reflect
Statements include proportionate share in total assets and total net assets as at March 31,
assets and liabilities as on March 31, 2021 2021, total revenues and net cash inflow/(outflow)
amounting to `8,705.76 million and `8,047.15 for the year ended on that date considered
million respectively and revenue and profit as under in the Statement based on financial
including other comprehensive Income for statements audited by other auditors:
the year ended March 31, 2021 amounting

Independent Auditors’ Report on Consolidated

(` in million)
Name of the Subsidiary Total Assets Total Net Assets Total Revenue for the Net Cash
as at as at year ended (Inflow /
March 31, 2021 March 31, 2021 March 31, 2021 Outflow)
ONGC Videsh Limited (OVL) # 11,74,475.87 5,03,063.84 1,31,542.83 (9,739.14 )

Financial Statements
Mangalore Refinery and Petrochemicals 3,47,294.21 42,481.01 5,09,920.99 240.25
Limited (MRPL) #
Hindustan Petroleum Corporation Limit- 13,41,597.02 3,80,808.64 27,32,216.88 8,414.80
ed (HPCL) #
Petronet MHB Limited (PMHBL) 6,763.36 6,070.52 1,112.80 (2,394.21)
# As per the consolidated financial statements.
iv. The consolidated financial statements also include the Group’s share of net profit/loss (including Other
Comprehensive Income) for the year ended March 31, 2021 as considered in the consolidated financial
statements in respect of following joint ventures whose financial statements/ financial information have not been
audited by us.
(` in million)
Name of the Company Group share in Group share in Net Group share – Total
Net Profit for Other Comprehensive
the year ended Income for the year
March 31, 2021 ended March 31, 2021
Joint Ventures 423
ONGC Teri Biotech Limited $ 44.08 (0.01) 44.07
ONGC Tripura Power Company Limited* 1,120.75 0.56 1121.31
ONGC Petro additions Limited $ (4,463.11) 5.99 (4,457.12)
Mangalore SEZ Limited* (86.21) 0.23 (85.98)
Indradhanush Gas Grid Limited $ 4.07 0.00 4.07
Associate
Petronet LNG Limited* 3,674.04 (2.64) 3,671.40
$ As per the standalone financial statements.
* As per the consolidated financial statements.
 THE UNSTOPPABLE
ENERGY SOLDIERS
v. The financial statements/ financial information joint ventures and Associate is based solely
of subsidiaries, joint ventures and Associate, on the reports of the other auditors after
referred to in para 5 (iii) and 5 (iv), have been considering the requirement of Standard on
audited by other auditors whose reports Auditing (SA 600) on ‘Using the work of Another
have been furnished to us by the Holding Auditor’ including materiality.
Company’s Management and our opinion on
vi. The consolidated financial statements
the consolidated financial statements, in so far
also include the group’s share of net profit
as it relates to the amounts and disclosures
(including Other Comprehensive Income) for the
included in respect of these subsidiaries, joint
year ended March 31, 2021 considered as under
ventures and Associate and our report in terms
based on financial statements not audited by us:
of sub-section (3) of Section 143 of the Act, in
so far as it relates to the aforesaid subsidiaries,
(` in million)
Name of the Company Group share in Group share in Net Group share – Total
Net Profit for Other Comprehensive
the year ended Income for the year
March 31, 2021 ended March 31, 2021
Joint Venture
Dahej SEZ Limited 179.52 0.00 179.52
Associate
Pawan Hans Limited (51.64) (15.59) (67.23)
Rohini Heliport Limited (0.05) 0.00 (0.05)

These financial statements/ financial information of a opinion, such adjustments are appropriate and
joint venture and two associates are unaudited and have been properly applied.
have been furnished to us by the Holding Company’s
viii. The Consolidated Financial Statements of the
Management and our opinion on the consolidated
Company for the year ended March 31, 2020 were
financial statements, in so far as it relates to the
audited by joint auditors of the Company five of
amounts and disclosures included in respect of these
which are the predecessor audit firms, and have
joint venture and associates, and our report in terms of
expressed an unmodified opinion dated June 30,
sub-section (3) of Section 143 of the Act in so far as it
2020 on such financial statements.
relates to the aforesaid joint venture and associates, is
based solely on such unaudited financial statements/ Our opinion on the Consolidated Financial
financial information. In our opinion and according to Statements is not modified in respect of above
424 the information and explanations given to us by the matters.
Holding Company’s Management, these financial
6. Information Other than the Consolidated
statements / financial information are not material to
Financial Statements and Auditor’s Report
the Group.
Thereon
vii. We audited the restatement/retrospective
The Holding Company’s Board of Directors
adjustments, as disclosed in Note No. 64 to the
is responsible for the preparation of the other
Consolidated Financial Statements, which have
information. The other information comprises the
been made to the comparative Consolidated
information included in the Board’s Report including
Financial Statements presented for the years prior
Annexures to Board’s Report, Management
to year ended March 31, 2021, in accordance
Discussion and Analysis, Business Responsibility
with the requirement of applicable Ind AS. In our
Report and Report on Corporate Governance
 ANNUAL REPORT
2020-21
but does not include the consolidated financial and detecting frauds and other irregularities;
statements and our auditors’ report thereon. The the selection and application of appropriate
above-referred information is expected to be accounting policies; making judgments and
made available to us after the date of this audit estimates that are reasonable and prudent; and
report. design, implementation and maintenance of
adequate internal financial controls, that were
Our opinion on the Consolidated Financial
operating effectively for ensuring accuracy
Statements does not cover the other information
and completeness of the accounting records,
and we do not express any form of assurance
relevant to the preparation and presentation of
conclusion thereon.
the consolidated financial statements that give
In connection with our audit of the consolidated a true and fair view and are free from material
financial statements, our responsibility is to read misstatement, whether due to fraud or error, which
the other information, identified above when it have been used for the purpose of preparation

Independent Auditors’ Report on Consolidated

becomes available and, in doing so, consider of the consolidated financial statements by the
whether the other information is materially Directors of the Holding Company, as aforesaid.
inconsistent with the consolidated financial
In preparing the consolidated financial statements,
statements or our knowledge obtained in the audit
the respective Board of Directors of the companies
or otherwise appears to be materially misstated.
included in the Group, its joint ventures and
If, based on the work we have performed, we
associates are responsible for assessing the ability

Financial Statements
conclude that there is a material misstatement of
of the Group, its joint ventures and associates
this other information; we are required to report
to continue as a going concern, disclosing, as
that fact.
applicable, matters related to going concern and
When we read the other information, if we conclude using the going concern basis of accounting
that there is a material misstatement therein, we unless management either intends to liquidate the
are required to communicate the matter to those Group or to cease operations, or has no realistic
charged with governance and take appropriate alternative but to do so.
actions necessitated by the circumstances and
The respective Board of Directors of the companies
the applicable laws and regulations.
included in the Group, its joint ventures and
7. Responsibilities of Management and Those associates are also responsible for overseeing the
Charged with Governance for the Consolidated financial reporting process of the Group, its joint
Financial Statements ventures and associates.
The Holding Company’s Board of Directors is 8. Auditor’s Responsibilities for the Audit of
responsible for the matters stated in section Consolidated Financial Statements
134(5) of the Act with respect to the preparation
Our objectives are to obtain reasonable assurance
and presentation of these consolidated financial
about whether the Consolidated Financial
statements that give a true and fair view of the
Statements as a whole are free from material
consolidated financial position, consolidated 425
misstatement, whether due to fraud or error, and to
financial performance, consolidated changes
issue an auditors’ report that includes our opinion.
in equity and consolidated cash flows of the
Reasonable assurance is a high level of assurance,
Group, its joint ventures and associates in
but is not a guarantee that an audit conducted in
accordance with the accounting principles
accordance with SAs will always detect a material
generally accepted in India, including the Indian
misstatement when it exists. Misstatements can
Accounting Standards (Ind AS) specified under
arise from fraud or error and are considered
section 133 of the Act. This responsibility also
material if, individually or in the aggregate, they
includes maintenance of adequate accounting
could reasonably be expected to influence the
records in accordance with the provisions of the
economic decisions of users taken on the basis of
Act for safeguarding of the assets of the Group, its
these Consolidated Financial Statements.
joint ventures and associates and for preventing
 THE UNSTOPPABLE
ENERGY SOLDIERS
As part of an audit in accordance with SAs, we • Evaluate the overall presentation, structure
exercise professional judgment and maintain and content of the consolidated financial
professional skepticism throughout the audit. We statements, including the disclosures, and
also: whether the consolidated financial statements
represent the underlying transactions
• Identify and assess the risks of material
and events in a manner that achieves fair
misstatement of the Consolidated Financial
presentation.
Statements, whether due to fraud or error,
design and perform audit procedures • Obtain sufficient appropriate audit evidence
responsive to those risks, and obtain audit regarding the financial information of the entities
evidence that is sufficient and appropriate to or business activities within the Group, its joint
provide a basis for our opinion. The risk of not ventures and associates to express an opinion
detecting a material misstatement resulting on the consolidated financial statements. We
from fraud is higher than for one resulting from are responsible for the direction, supervision
error, as fraud may involve collusion, forgery, and performance of the audit of the consolidated
intentional omissions, misrepresentations, or financial statements of such entities included
the override of internal control. in the consolidated financial statements of
which we are the independent auditors. For
• Obtain an understanding of internal control
the other entities included in the consolidated
relevant to the audit in order to design audit
financial statements, which have been audited
procedures that are appropriate in the
by other auditors, such other auditors remain
circumstances. Under section 143(3)(i) of the
responsible for the direction, supervision and
Act, we are also responsible for expressing
performance of the audits carried out by them.
our opinion on whether the Group and its
We remain solely responsible for our audit
joint ventures and associates has adequate
opinion.
internal financial controls with reference to
financial statements in place and the operating Materiality is the magnitude of misstatements
effectiveness of such controls. in the Consolidated Financial Statements that,
individually or in aggregate, makes it probable
• Evaluate the appropriateness of accounting
that the economic decisions of a reasonably
policies used and the reasonableness of
knowledgeable user of the Consolidated Financial
accounting estimates and related disclosures
Statements may be influenced. We consider
made by management.
quantitative materiality and qualitative factors
• Conclude on the appropriateness of in (i) planning the scope of our audit work and
management’s use of the going concern basis in evaluating the results of our work; and (ii) to
of accounting and, based on the audit evidence evaluate the effect of any identified misstatements
obtained, whether a material uncertainty exists in the Consolidated Financial Statements.
related to events or conditions that may cast
We communicate with those charged with
significant doubt on the ability of the Group,
426 its joint ventures and associates to continue
governance of the Holding Company regarding,
among other matters, the planned scope and
as a going concern. If we conclude that a
timing of the audit and significant audit findings,
material uncertainty exists, we are required
including any significant deficiencies in internal
to draw attention in our auditors’ report to
control that we identify during our audit.
the related disclosures in the consolidated
financial statements or, if such disclosures We also provide those charged with governance
are inadequate, to modify our opinion. Our with a statement that we have complied
conclusions are based on the audit evidence with relevant ethical requirements regarding
obtained up to the date of our auditors’ report. independence, and to communicate with them
However, future events or conditions may cause all relationships and other matters that may
the Group, its joint ventures and associates to reasonably be thought to bear on our independence,
cease to continue as a going concern. and where applicable, related safeguards.
 ANNUAL REPORT
2020-21
From the matters communicated with those with the Companies (Indian Accounting
charged with governance, we determine those Standards) Rules, 2015 as amended;
matters that were of most significance in the
e. as per notification number G.S.R. 463(E)
audit of the consolidated financial statements
dated June 5, 2015 issued by Ministry of
of the current period and are therefore the key
Corporate Affairs, section 164(2) of the Act
audit matters. We describe these matters in our
regarding the disqualifications of Directors
auditors’ report unless law or regulation precludes
is not applicable to the Holding Company
public disclosure about the matter or when, in
and its subsidiary companies, since they
extremely rare circumstances, we determine that a
are Government Companies;
matter should not be communicated in our report
because the adverse consequences of doing so f. with respect to the adequacy of the internal
would reasonably be expected to outweigh the financial controls with reference to financial
public interest benefits of such communication. statement of the Holding Company, its

Independent Auditors’ Report on Consolidated

subsidiaries, joint ventures and associates
9. Report on Other Legal and Regulatory
incorporated in India and the operating
Requirements
effectiveness of such controls, refer to our
1. As required by Section 143(3) of the Act, based separate report in “Annexure A”;
on our audit and on the consideration of report
g. as per notification number G.S.R. 463 (E)
of the other auditors on separate financial
dated June 5, 2015 issued by Ministry of

Financial Statements
statements and the other financial information
Corporate Affairs, section 197 of the Act
of subsidiaries, joint ventures and associates
regarding remuneration to director is not
as noted in the other matter paragraph, we
applicable to the the Holding Company
report, to the extent applicable, that:
and its subsidiary companies, since they
a. we have sought and obtained all the are Government Companies; and
information and explanations which to the
h. with respect to the other matters to
best of our knowledge and belief were
be included in the Auditors’ Report in
necessary for the purposes of our audit
accordance with Rule 11 of the Companies
of the aforesaid consolidated financial
(Audit and Auditors) Rules, 2014, in our
statements;
opinion and to the best of our information
b. in our opinion, proper books of account as and according to the explanations given to
required by law relating to preparation of the us:
aforesaid consolidated financial statements
i. the Group, its joint ventures and associates
have been kept so far as it appears from
have disclosed the impact of pending
our examination of those books and the
litigations on its financial position in its
reports of the other auditors;
Consolidated Financial Statements – Refer
c. the Consolidated Balance Sheet, the Note 58.1 to the Consolidated Financial
Consolidated Statement of Profit and Loss Statements; 427
(including Other Comprehensive Income),
ii. according to information and explanations
the Consolidated Statement of Changes
given to us, the Group, its joint ventures
in Equity and the Consolidated Statement
and associates have made provision
of Cash Flows dealt with by this Report
for material foreseeable losses, if any, in
are in agreement with the relevant books
respect of long- term contract including
of account maintained for the purpose of
derivatives contracts; and
preparation of the consolidated financial
statements; iii. there has been no delay in transferring
amounts, required to be transferred, to the
d. in our opinion, the aforesaid consolidated
Investor Education and Protection Fund by
financial statements comply with the Ind AS
the Group, its joint ventures and associates.
specified under Section 133 of the Act read
 THE UNSTOPPABLE
ENERGY SOLDIERS

For G M Kapadia & Co. For R Gopal & Associates For SARC & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sandeep Kumar Sawaria) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 061771) Partner (M. No. 084884)
UDIN: 21048243AAAADF2684 UDIN: 21061771AAAAEH2817 UDIN: 21084884AAAAAF3344
Place: Mumbai Place: Kolkata Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No. 002785S Firm Reg. No.000560C

Sd/- Sd/- Sd/-

(Varun Bansal) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 402856) Partner (M. No. 041883) Partner (M. No. 047684)
UDIN: 21402856AAAAAU9814 UDIN: 21041883AAAAAF7507 UDIN: 21047684AAAAAG1340
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021

428

As the national oil company of India, ONGC is always

expanding its exploratory footprint
 ANNUAL REPORT
2020-21

Annexure - A to Independent Auditors’ Report on

Consolidated Financial Statements
(Referred to in paragraph 9 (1) (f) under ‘Report on Other Legal and Regulatory
Requirements’ section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (“the Act”)

To the Members of Oil and Natural Gas Corporation Auditors’ Responsibility

Limited
Our responsibility is to express an opinion on the

Independent Auditors’ Report on Consolidated

In conjunction with our audit of the consolidated internal financial controls with reference to financial
financial statements of Oil and Natural Gas statements of the Holding Company, its subsidiaries,
Corporation Limited (herein after referred to as “the joint ventures and associates, which are companies
Holding Company”) as of and for the year ended incorporated in India, based on our audit. We
March 31, 2021, we have audited the internal financial conducted our audit in accordance with the Guidance
controls with reference to financial statements of the Note on Audit of Internal Financial Controls over

Financial Statements
Holding Company and its subsidiaries, Joint ventures Financial Reporting (the “Guidance Note”) and the
and associates which are companies incorporated in Standards on Auditing as specified under section
India, as of that date. 143(10) of the Act, to the extent applicable to an audit
of internal financial controls, both applicable to an
Management’s Responsibility for Internal Financial
audit of Internal Financial Controls and both issued
Controls
by the Institute of Chartered Accountants of India.
The respective Board of Directors of the Holding Those Standards and the Guidance Note require that
company, its subsidiaries, joint ventures and we comply with ethical requirements and plan and
associates which are companies incorporated in perform the audit to obtain reasonable assurance
India, are responsible for establishing and maintaining about whether adequate internal financial controls
internal financial controls based on the internal with reference to consolidated financial statements
control over financial reporting criteria established by was established and maintained and if such controls
the Holding Company, its subsidiaries, joint ventures operated effectively in all material respects.
and associates which are companies incorporated
Our audit involves performing procedures to
in India, considering the essential components of
obtain audit evidence about the adequacy of the
internal control stated in the Guidance Note on Audit
internal financial controls system with reference to
of Internal Financial Controls Over Financial Reporting
consolidated financial statements and their operating
issued by the Institute of Chartered Accountants
effectiveness. Our audit of internal financial controls
of India. These responsibilities include the design,
with reference to consolidated financial statements 429
implementation and maintenance of adequate internal
included obtaining an understanding of internal
financial controls that were operating effectively
financial controls with reference to consolidated
for ensuring the orderly and efficient conduct of its
financial statements, assessing the risk that a
business, including adherence to the respective
material weakness exists, and testing and evaluating
company’s policies, the safeguarding of its assets,
the design and operating effectiveness of internal
the prevention and detection of frauds and errors,
control based on the assessed risk. The procedures
the accuracy and completeness of the accounting
selected depend on the auditor’s judgment,
records, and the timely preparation of reliable financial
including the assessment of the risks of material
information, as required under the Act.
misstatement of the financial statements, whether
due to fraud or error.
 THE UNSTOPPABLE
ENERGY SOLDIERS
We believe that the audit evidence we have obtained improper management, override of controls, material
and the audit evidence obtained by the other auditors misstatements due to error or fraud may occur and
in terms of the reports referred to in the “Other Matters” not be detected. Also, projections of any evaluation
paragraph below, is sufficient and appropriate to of the internal financial controls with reference to
provide a basis for our audit opinion on the internal Consolidated Financial Statements to future periods
financial controls system with reference to financial are subject to the risk that the internal financial control
statements of the Holding Company, its subsidiaries, with reference to Consolidated Financial Statements
joint ventures and associates, which are companies may become inadequate because of changes in
incorporated in India. conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Meaning of Internal Financial Controls with
reference to Consolidated Financial Statements Opinion
A Company’s internal financial controls with reference In our opinion, the Holding Company, its subsidiary
to financial statements is a process designed companies, joint ventures and associates, which
to provide reasonable assurance regarding the are companies incorporated in India, have, in all
reliability of financial reporting and the preparation material respects, an adequate internal financial
of consolidated financial statements for external controls with reference to consolidated financial
purposes in accordance with generally accepted statements and such internal financial controls with
accounting principles. A Company’s internal financial reference to consolidated financial statements were
controls with reference to financial statements operating effectively as at March 31, 2021, based on
includes those policies and procedures that (1) pertain the internal controls over financial reporting criteria
to the maintenance of records that, in reasonable established by the Holding Company considering the
detail, accurately and fairly reflect the transactions essential components of internal control stated in the
and dispositions of the assets of the Company; (2) Guidance Note on Audit of Internal Financial Controls
provide reasonable assurance that transactions over Financial Reporting issued by the Institute of
are recorded as necessary to permit preparation of Chartered Accountants of India.
consolidated financial statements in accordance
Other Matters
with generally accepted accounting principles, and
that receipts and expenditures of the company are As stated in Note No. 65 of the Consolidated
being made only in accordance with authorizations of Financial Statements read together with para 3(i) of
management and directors of the Company; and (3) our Independent Auditors’ Report, as no meeting
provide reasonable assurance regarding prevention of the Audit Committee was held after September
or timely detection of unauthorized acquisition, use, 8, 2020, and hence, the mandatory functions of the
or disposition of the Company’s assets that could Audit Committee, such as review/approval/oversight/
have a material effect on the financial statements. evaluation of the Holding Company’s external financial
reporting, related party transactions, Internal financial
Inherent Limitations of Internal Financial Controls
controls over financial reporting, risk management
with reference to Consolidated Financial
430 Statements
system, internal audit function, whistle blower and
vigil mechanism, end utilisation of funds etc. have
Because of the inherent limitations of internal financial been directly carried out by the Holding Company’s
controls with reference to Consolidated Financial Board of Directors.
Statements, including the possibility of collusion or
 ANNUAL REPORT
2020-21
Our aforesaid reports under Section 143(3) (i) of the Act on the adequacy and operating effectiveness
Act on the adequacy and operating effectiveness of the internal financial controls with reference to
of the internal financial controls with reference to consolidated financial statements does not include
consolidated financial statements in so far as it relates in respect of one joint venture and two associates,
to four subsidiary companies, five joint ventures and which are companies incorporated in India whose
one Associate which are companies incorporated audit reports are not available. In our opinion and
in India, is based on the corresponding standalone/ according to information and explanations given to us
consolidated reports of the auditors, as applicable, of by the Management, this financial information are not
such companies incorporated in India. material to the Group.
Our aforesaid reports under Section 143(3) (i) of the Our opinion is not modified in respect of these matters.

For G M Kapadia & Co. For R Gopal & Associates For SARC & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants

Independent Auditors’ Report on Consolidated

Firm Reg. No. 104767W Firm Reg. No. 000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sandeep Kumar Sawaria) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 061771) Partner (M. No. 084884)
UDIN: 21048243AAAADF2684 UDIN: 21061771AAAAEH2817 UDIN: 21084884AAAAAF3344

Financial Statements
Place: Mumbai Place: Kolkata Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No. 002785S Firm Reg. No.000560C

Sd/- Sd/- Sd/-

(Varun Bansal) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 402856) Partner (M. No. 041883) Partner (M. No. 047684)
UDIN: 21402856AAAAAU9814 UDIN: 21041883AAAAAF7507 UDIN: 21047684AAAAAG1340
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021

431

ONGC has one of the largest pipeline networks in the country

for transporting oil and gas produced from its domestic fields
 THE UNSTOPPABLE
ENERGY SOLDIERS
Consolidated Balance Sheet as at March 31, 2021 (` in million)
Particulars Note As at As at As at
No. March 31, March 31, April 01,
2021 2020* 2019*
I. ASSETS
(1) Non-current assets
(a) Property, plant and equipment
(i) Oil and gas assets 6 1,392,808.53 1,400,441.38 1,443,793.87
(ii) Other property, plant and equipment 7 741,258.18 741,273.97 712,382.38
(iii) Right of Use Assets 8 159,063.84 147,117.63 -
(b) Capital work-in-progress 9
(i) Oil and gas assets
a) Development wells in progress 59,007.07 55,899.40 43,837.48
b) Oil and gas facilities in progress 274,726.41 197,501.09 132,308.54
(ii) Others 295,480.35 204,955.77 122,330.90
(c) Goodwill(including Goodwill on Consolidation) 10 135,385.91 142,366.50 140,883.53
(d) Investment Property 11 78.71 78.72 78.73
(e) Other intangible assets 12 8,868.49 7,641.41 6,768.44
(f) Intangible assets under development 13
(i) Exploratory wells in progress 187,906.30 194,021.48 217,905.35
(ii) Acquisition cost 184,397.33 184,978.64 173,698.05
(iii)Others 1,802.51 967.58 484.07
(g) Financial assets
(i) Investments in: 14
(a) Joint Ventures and Associates 355,465.94 353,521.74 392,838.31
(b) Other Investments 190,579.91 160,581.40 287,760.68
(ii) Trade receivables 15 25,629.56 23,740.97 20,572.16
(iii) Loans 16 28,218.60 32,145.81 28,504.22
(iv) Deposit under site restoration fund 17 235,114.70 222,836.06 181,884.30
(v) Finance lease receivables 18 - - -
(vi) Others 19 38,307.37 41,368.96 37,274.63
(h) Deferred tax assets(net) 33 26,936.44 26,674.95 17,310.58
(i) Non-current tax assets(net) 36 95,884.79 107,599.95 105,231.80
(j) Other non-current assets 20 63,883.55 47,368.22 57,132.47
Total non-current assets 4,500,804.49 4,293,081.63 4,122,980.49
(2) Current assets
(a) Inventories 21 445,733.26 330,512.03 351,340.66
(b) Financial assets
(i) Investments 22 54,175.73 53,448.62 50,837.67
(ii) Trade receivables 15 160,158.34 91,734.07 153,964.55
(iii) Cash and cash equivalents 23 40,193.69 47,805.62 38,221.12
(iv) Other bank balances 24 31,729.02 48,596.74 9,975.45
432 (v) Loans 16 7,520.60 11,821.17 17,014.73
(vi) Others 19 65,621.64 115,707.54 169,287.63
(c) Current Tax Assets(net) 36 1,884.36 1,983.14 1,524.30
(d) Other current assets 20 124,661.91 105,344.24 78,512.31
931,678.55 806,953.17 870,678.42
Assets classified as held for sale 25 163.09 141.34 1,278.66
Total current assets 931,841.64 807,094.51 871,957.08
Total assets 5,432,646.13 5,100,176.14 4,994,937.57
II. EQUITY AND LIABILITIES
(1) Equity
(a) Equity share capital 26 62,901.39 62,901.54 62,901.54
(b) Other equity 27 2,146,908.50 1,988,144.49 2,092,148.32
Equity attributable to owners of the Company 2,209,809.89 2,051,046.03 2,155,049.86
Non-controlling interests 28 216,157.99 184,057.39 182,734.51
Total Equity 2,425,967.88 2,235,103.42 2,337,784.37
 ANNUAL REPORT
2020-21
Consolidated Balance Sheet as at March 31, 2021 (` in million)
Particulars Note As at As at As at
No. March 31, March 31, April 01,
2021 2020* 2019*
(2) Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 29 791,620.63 729,315.77 521,679.62
(ii) Lease Liabilities 30 96,462.02 80,148.65 6,053.10
(iii) Others 31 62,866.60 7,019.14 28,229.20
(b) Provisions 32 361,145.11 331,006.04 278,498.63
(c) Deferred Tax liabilities(net) 33 454,004.50 460,420.14 467,220.54
(d) Other non-current liabilities 34 7,931.94 6,437.22 5,479.99
Total non-current liabilities 1,774,030.80 1,614,346.96 1,307,161.08
Current Liabilities
(a) Financial liabilities
(i) Borrowings 29 306,576.10 315,056.34 493,323.02

Consolidated Financial Statements

(ii) Trade payables 35
- to micro and small enterprises 3,127.57 1,651.50 1,218.01
- to other than micro and small enterprises 271,363.88 227,959.76 304,356.71
(iii) Lease Liabilities 30 44,795.69 51,552.18 1,017.31
(iv) Others 31 460,593.40 543,046.51 424,302.18
(b) Other current liabilities 34 89,978.43 63,335.19 69,897.10
(c) Provisions 32 48,786.86 41,872.02 43,824.45
(d) Current Tax Liabilities(net) 36 7,425.52 6,252.26 12,053.34
Total current liabilities 1,232,647.45 1,250,725.76 1,349,992.12
Total liabilities 3,006,678.25 2,865,072.72 2,657,153.20
Total equity and liabilities 5,432,646.13 5,100,176.14 4,994,937.57
* Restated, refer Note no. 64
Accompanying notes to the Consolidated Financial Statements – 1 to 71
FOR AND ON BEHALF OF THE BOARD
Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G M Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No.000846C Firm Reg. No. 006085N 433
Sd/- Sd/- Sd/-
(Rajen Ashar) (Sandeep Kumar Sawaria) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 061771) Partner (M. No. 084884)
Place: Mumbai Place: Kolkata Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No.002785S Firm Reg. No. 000560C
Sd/- Sd/- Sd/-
(Varun Bansal) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 402856) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 THE UNSTOPPABLE
ENERGY SOLDIERS

Consolidated Statement of Profit and Loss for the year ended March 31, 2021
(All amounts are in ` millions unless otherwise stated)
Particulars Note Year Ended Year Ended
No. March 31, 2021 March 31, 2020*
I Revenue from operations 37 3,605,723.10 4,249,610.75
II Other income 38 93,230.19 90,770.22
III Total income (I+II) 3,698,953.29 4,340,380.97
IV Expenses
Purchase of Stock-in-Trade 39 1,445,618.29 1,760,064.29
Changes in inventories of finished goods, stock-in-trade and work- 40 (99,166.59) 11,455.63
in progress
Production, transportation, selling and distribution expenditure 41 1,681,478.36 1,839,479.78
Exploration costs written off
(a) Survey costs 19,677.24 19,015.34
(b) Exploration well costs 51,678.17 71,218.77
Finance costs 42 50,790.31 74,893.39
Depreciation, depletion, amortisation and impairment 43 255,384.71 266,348.81
Other impairment and write offs 44 11,777.63 27,327.17
Total expenses (IV) 3,417,238.12 4,069,803.18
V Profit before exceptional items and tax (III-IV) 281,715.17 270,577.79
VI Exceptional items - Income/(expenses) 45 9,187.68 (90,284.79)
VII Share of profit of Associates 11,748.34 23,559.57
VIII Share of profit of Joint Ventures (1,554.72) (14,228.12)
IX Profit before tax (V+VI+VII+VIII) 301,096.47 189,624.45
X Tax expense 46
(a) Current tax relating to:
- current year 80,815.23 96,475.80
- earlier years 9,820.30 (18,054.22)
(b) Deferred tax (2,973.52) (3,359.72)
434
Total tax expense (X) 87,662.01 75,061.86
XI Profit for the year (IX-X) 213,434.46 114,562.59
XII Other comprehensive income
A (i) Items that will not be reclassified to profit or loss
(a) Remeasurement of the defined benefit plans (1,810.76) (6,595.42)
- Deferred tax 478.11 2,121.79
(b) Equity instruments through other comprehensive income 27,548.43 (132,515.55)
- Deferred tax (1,957.67) 8,031.93
 ANNUAL REPORT
2020-21

Consolidated Statement of Profit and Loss for the year ended March 31, 2021
(All amounts are in ` millions unless otherwise stated)
Particulars Note Year Ended Year Ended
No. March 31, 2021 March 31, 2020*
(c) Share of other comprehensive income in associates and 11.37 (24.86)
joint ventures, to the extent not to be reclassified to profit or
loss
- Deferred tax 5.45 0.03
B (i) Items that will be reclassified to profit or loss
(a) Exchange differences in translating the financial statement of (10,626.01) 13,335.32
foreign operation
- Deferred tax 3,790.49 (4,801.67)
(b) Effective portion of gains (losses) on hedging instruments in (10.87) (241.95)

Consolidated Financial Statements

cash flow hedges
- Deferred tax 2.73 60.90
(c) Share of other comprehensive income in associates and 1,215.91 (1,690.69)
joint ventures, to the extent to be reclassified to profit or loss
Total other comprehensive income (net of tax) (XII) 18,647.18 (122,320.17)
XIII Total Comprehensive Income for the year (XI+XII) 232,081.64 (7,757.58)

Profit for the year attributable to:

- Owners of the Company 162,486.88 108,035.97
- Non-controlling interests 50,947.58 6,526.62
213,434.46 114,562.59
Other comprehensive income for the year
- Owners of the Company 17,894.17 (119,086.58)
- Non-controlling interests 753.01 (3,233.59)
18,647.18 (122,320.17)
Total comprehensive income for the year
- Owners of the Company 180,381.05 (11,050.61)
435
- Non-controlling interests 51,700.59 3,293.03
232,081.64 (7,757.58)
Earnings per equity share: 47
(a) Basic (`) 12.92 8.59
(b) Diluted (`) 12.92 8.59
* Restated, refer Note no. 64
Accompanying notes to the Consolidated Financial Statements – 1 to 71
 THE UNSTOPPABLE
ENERGY SOLDIERS
FOR AND ON BEHALF OF THE BOARD
Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G M Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No.000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sandeep Kumar Sawaria) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 061771) Partner (M. No. 084884)
Place: Mumbai Place: Kolkata Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Varun Bansal) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 402856) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021

436

ONGC drilled 480 wells in FY’21 despite lesser Rig Months and
lockdown due to COVID-19
 ANNUAL REPORT
2020-21
Consolidated Statement of Changes in Equity for the year ended March 31, 2021
(i) Equity share capital
(` in million)
Particulars Amount
Balance as at March 31, 2019 62,901.54
Changes during the year -
Balance as at March 31, 2020 62,901.54
Changes during the year ( Note no 26.6) (0.15)
Balance as at March 31, 2021 62,901.39

Consolidated Financial Statements

437

At ONGC, environmental sustainability goes hand-in-hand with

our business pursuits. ONGC took up mangrove plantations
along the western coast of the country
 438
Consolidated Statement of Changes in Equity for the year ended March 31, 2021

ENERGY SOLDIERS
THE UNSTOPPABLE
(ii) Other Equity (` in million)
Reserves and surplus

Exchange
Foreign difference on Equity
Cash
Currency translating Instruments Attributable Non
Capital Flow
Particulars Other Capital Debenture Monetary the financial through Other to owners of Controlling Total
Capital Redemp- General Legal Retained Hedge
Reserve- Com- redemption item statements comprehen- the parent interest (NCI)
reserve tion reserve reserve earnings Reserve
mon Control reserve Translation of foreign sive Income
Reserve
difference operations
Account

Balance as at 614.47 (353,907.90) 1,364.60 65,841.53 1,788,382.79 56,017.85 (14.92) 204,656.26 143,125.96 2.04 200,362.32 2,106,445.00 181,062.10 2,287,507.10
March 31, 2019

Effect of restate- - - - - - - - (12,490.98) (1,805.70) - - (14,296.68) 1,672.41 (12,624.27)

ment (Note No.
64)

Balance as at 614.47 (353,907.90) 1,364.60 65,841.53 1,788,382.79 56,017.85 (14.92) 192,165.28 141,320.26 2.04 200,362.32 2,092,148.32 182,734.51 2,274,882.83
April 01, 2019
(restated)*

Profit for the year - - - - - - - 108,035.97 - - - 108,035.97 6,526.62 114,562.59

Remeasurement - - - - - - - (3,680.98) - - - (3,680.98) (792.65) (4,473.63)

of defined benefit
plans (net of tax)

Other items of - - - - - - - (10.49) 8,702.77 (956.82) (123,141.05) (115,405.59) (2,440.94) (117,846.54)

comprehensive
income for the
year (net of tax)

Total compre- - - - - - - - 104,344.50 8,702.77 (956.82) (123,141.05) (11,050.60) 3,293.03 (7,757.58)

hensive income
for the year*

Equity accounting - - - - - - - (3,999.32) - - - (3,999.32) - (3,999.32)

adjustments w.r.t
JVs/Associates

Transfer/Additions - - - - - - 14.92 - - - - 14.92 - 14.92

(net)

Adjustments - - - - - - - (2,433.22) - - - (2,433.22) - (2,433.22)

due to Inter
Group Company
holdings
 Reserves and surplus

Exchange
Foreign difference on Equity
Cash
Currency translating Instruments Attributable Non
Capital Flow
Particulars Other Capital Debenture Monetary the financial through Other to owners of Controlling Total
Capital Redemp- General Legal Retained Hedge
Reserve- Com- redemption item statements comprehen- the parent interest (NCI)
reserve tion reserve reserve earnings Reserve
mon Control reserve Translation of foreign sive Income
Reserve
difference operations
Account

Payment of - - - - - - - (72,488.41) - - - (72,488.41) (7,348.34) (79,836.75)

dividends

Tax on Dividends - - - - (1,048.32) - - (13,808.60) - - - (14,856.92) (1,510.48) (16,367.40)

Transfer from / to - - - - 50,216.26 - - (50,216.26) - - - - - -

general reserve

Transfer from / - - - (154.92) 2,585.55 - - (2,418.24) - - - 12.39 (31.41) (19.02)

to DRR

Others - - - - - - - 1,310.22 - - - 1,310.22 5,343.88 6,654.10

Change in NCI - (512.89) - - - - - - - - - (512.89) 1,576.20 1,063.31

due to acquisi-
tion/Disposal

Balance as at 614.47 (354,420.79) 1,364.60 65,686.61 1,840,136.28 56,017.85 - 152,455.95 150,023.03 (954.78) 77,221.27 1,988,144.49 184,057.39 2,172,201.88
March 31, 2020*

Profit for the year - - - - - - - 162,486.88 - - - 162,486.88 50,947.58 213,434.46

Remeasurement - - - - - - - (890.37) - - - (890.37) (442.28) (1,332.65)

of defined benefit
plans (net of tax)

Other items of - - - - - - - 1.50 (6,907.62) 620.60 25,070.06 18,784.54 1,195.29 19,979.83

comprehensive
income for the
year (net of tax)

Total compre- - - - - - - - 161,598.01 (6,907.62) 620.60 25,070.06 180,381.05 51,700.59 232,081.64

ANNUAL REPORT
hensive income
for the year

Equity accounting - - - - - - - (1,808.57) - - - (1,808.57) - (1,808.57)

adjustments w.r.t
JVs/Associates

2020-21
439

Consolidated Financial Statements

 440
Reserves and surplus

ENERGY SOLDIERS
THE UNSTOPPABLE
Exchange
Foreign difference on Equity
Cash
Currency translating Instruments Attributable Non
Capital Flow
Particulars Other Capital Debenture Monetary the financial through Other to owners of Controlling Total
Capital Redemp- General Legal Retained Hedge
Reserve- Com- redemption item statements comprehen- the parent interest (NCI)
reserve tion reserve reserve earnings Reserve
mon Control reserve Translation of foreign sive Income
Reserve
difference operations
Account

Adjustments - - - - - - - 1,572.40 - - - 1,572.40 - 1,572.40

due to Inter
Group Company
holdings

Payment of - - - - - - - (22,856.56) - - - (22,856.56) (8,068.68) (30,925.24)

dividends

Transfer to Capital - - 369.12 - (369.12) - - - - - - - - -

Redemption Re-
serve

Transfer to gener- - - - - 75,487.76 - - (75,487.76) - - - - - -

al reserve

Transfer from / to - - - - - (27,435.68) - 27,435.68 - - - - - -

legal reserve

Transfer from / - - - (24,433.39) 24,606.46 - - (173.07) - - - - - -

to DRR

Effect of buy back - - - - (1,966.46) - - - - - - (1,966.46) (17,896.19) (19,862.65)

of shares# (Note
No. 4(c))

Change in NCI - - - - - - - 2,076.69 - - - 2,076.69 5,497.32 7,574.01

due to acquisi-
tion/Disposal

Others 0.32 - - - - - - 1,276.74 - 88.40 - 1,365.46 867.56 2,233.02

Balance as at 614.79 (354,420.79) 1,733.72 41,253.22 1,937,894.92 28,582.17 - 246,089.51 143,115.41 (245.78) 102,291.33 2,146,908.50 216,157.99 2,363,066.49
March 31, 2021

# In respect of buy back of shares by subsidiary HPCL * Restated, refer Note No. 64
 FOR AND ON BEHALF OF THE BOARD
Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G M Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No.000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sandeep Kumar Sawaria) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 061771) Partner (M. No. 084884)
Place: Mumbai Place: Kolkata Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Varun Bansal) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 402856) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021

ANNUAL REPORT
2020-21
441

Consolidated Financial Statements

 THE UNSTOPPABLE
ENERGY SOLDIERS
Consolidated Statement of Cash Flows for the year ended March 31, 2021
(` in million)
Particulars Year ended Year ended
March 31, 2021 March 31, 2020*
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit After Tax 213,434.46 114,562.59
Adjustments For:
- Income Tax Expense 87,662.01 75,061.86
- Share of profit of joint ventures and associates (10,193.62) (9,331.45)
- Exceptional Items (9,187.68) 90,284.79
- Depreciation, Depletion, Amortisation & Impairment 255,384.71 266,348.81
- Exploratory Well Costs Written off 51,678.17 71,218.77
- Finance cost 50,790.31 74,893.39
- Unrealized Foreign Exchange Loss/(Gain) (10,298.03) 33,077.11
- Other impairment and Write offs 11,777.63 27,327.17
- Excess Provision written back (13,217.96) (20,228.14)
- Gain on revaluation of financial liability towards (4,659.61) (5,038.27)
CCDs (Note No. 64)
- Interest Income (18,038.51) (21,416.17)
- Loss / (gain) on fair valuation of financial instru- (839.04) (1,153.67)
ments
- Amortization of Financial Guarantee (12.74) 292.36
- Amortization of prepayments 6.75 6.68
- Liabilities no longer required written back (1,576.87) (1,413.86)
- Amortization of Government Grant (225.21) (205.12)
- Loss/(Profit) on sale of non current assets 582.31 (61.22)
- Dividend Income (15,405.19) (9,074.21)
- Remeasurement of Defined benefit plans (1,531.98) (6,009.40)
- Other expenditure/income 487.10 373,182.55 (67.79) 564,511.65
Operating Profit before Working Capital Changes 586,617.01 679,074.24
Adjustments for:-
- Receivables (66,660.38) 61,446.52
- Loans and Advances 52,457.24 26,220.11
- Other Assets (42,217.19) (31,820.29)
- Inventories (116,818.80) 9,569.06
442
- Trade Payable and Other Liabilities 134,001.23 (39,237.90) 61,608.72 127,024.12
Cash generated from Operations 547,379.11 806,098.36
Income Taxes Paid (Net of tax refund) (75,365.18) (100,168.58)
Net Cash generated from Operating Activities 'A' 472,013.93 705,929.78
B. CASH FLOW FROM INVESTING ACTIVITIES:
Payments for Property, plant and equipment (323,352.48) (422,584.29)
Proceeds from disposal of Property, plant and equip- 2,808.01 4,009.26
ment
Exploratory and Development Drilling (106,652.81) (127,264.97)
Proceeds/(Investments) in Term deposits with maturi- 16,727.80 (6,892.83)
ty 3 to 12 months
Proceeds/(Investment) in Mutual funds (3,061.39) (2,140.38)
 ANNUAL REPORT
2020-21

Particulars Year ended Year ended

March 31, 2021 March 31, 2020*
Investment in Joint Ventures and Associates (25,256.87) (8,375.31)
Loan to Joint Ventures/Associates 1,080.28 1,031.56
Investments- Others (211.54) (210.52)
Deposit in Site Restoration Fund (12,315.90) (40,848.69)
Dividend Received from Associates and Joint Ventures 27,690.41 41,412.58
Dividend Received from Other Investments 15,405.16 8,910.23
Interest Received 16,241.62 17,970.22
Net Cash used in Investing Activities 'B' (390,897.71) (534,983.14)
C. CASH FLOW FROM FINANCING ACTIVITIES:
Change in Equity - (162.01)
Change in NCI (9,210.08) 917.56
Proceeds from Non Current Borrowings 187,797.34 278,708.31

Consolidated Financial Statements

Repayment of Non Current Borrowings (135,337.71) (63,063.89)
Proceeds/(Repayment) of Current Borrowings (net) 539.87 (191,531.21)
Dividend Paid on Equity Share (30,962.94) (82,972.42)
Tax paid on Dividend - (16,367.40)
Interest Paid (30,903.03) (35,080.17)
Payment of Lease Liabilities (net of interest) (56,880.66) (50,380.48)
Interest expense on lease liabilities (7,620.90) (7,331.93)
Net Cash used in Financing Activities 'C' (82,578.11) (167,263.64)
Net increase/(decrease) in Cash and Cash Equiva-
lents (A+B+C) (1,461.89) 3,683.00
Cash and Cash Equivalents as at the beginning of
the year 16,636.67 9,561.01
Add: Effect of exchange rate changes on the balance
of cash and cash equivalents held in foreign currency (492.46) 3,392.67
Cash and Cash Equivalents as at the end of year 14,682.32 16,636.67
* Restated, refer Note no. 64
1. Details of cash and cash equivalents at the end of the year: (` in million)
Particulars Year ended Year ended
March 31, 2021 March 31, 2020
Balances with Banks 22,797.54 16,912.03
443
Cash on Hand 53.54 27.49
Bank Deposit with original maturity up to 3 month 17,342.61 30,866.10
40,193.69 47,805.62
Less :Cash Credit/Bank OD 25,511.37 31,168.95
Cash and cash equivalents at the end of the year 14,682.32 16,636.67
 THE UNSTOPPABLE
ENERGY SOLDIERS
2. Reconcilation of liabilities arising from financing activities:
For FY 2020-21:
(` in million)
Sl. No. Particulars As at Financing Non-cash As at
March 31, 2020 cash Flows changes March 31, 2021
I Borrowing - Non Current*
1 External commercial borrowing (ECB ) 32,844.25 (11,135.30) (667.26) 21,041.69
2 Loan from Oil Industry Development Board 34,701.87 (929.38) - 33,772.50
(OIDB)
3 Non Convertible Debentures 100,574.51 85,564.33 (1.11) 186,137.73
4 Compulsorily Convertible Debentures 9,989.37 - 3.63 9,993.00
5 Deferred payment liabilities - VAT Loan 360.78 74.88 (17.57) 418.09
6 Working capital loan from banks 30,025.03 11,165.63 (1,208.70) 39,981.96
7 Foreign Currency Bonds 272,520.13 - (4,448.77) 268,071.36
8 Foreign Currency Term Loan (FCTL) 357,332.52 (32,631.65) (10,257.56) 314,443.31
9 Rupee Term Loan 6,856.72 3,010.92 0.52 9,868.16
10 Other Loans 2,762.81 (2,659.81) 204.60 307.60
11 Other financial liabilities (Non current) - Net 1,750.66 - (1,719.25) 31.41
Derivative Contracts
Total 849,718.65 52,459.63 (18,111.47) 884,066.81
II Borrowing - Current
1 Working capital loan from banks 52,662.81 14,527.12 48.05 67,237.98
2 Commercial Papers 34,331.35 49,330.07 166.31 83,827.73
3 Loan repayable on demand 4,732.16 11,426.16 - 16,158.32
4 Other Loans 13,999.42 496.20 0.62 14,496.24
5 Foreign currency Terms Loans 84,990.35 (53,301.08) (1,553.59) 30,135.68
6 Rupee Term Loans 93,171.30 (21,938.60) (2,023.92) 69,208.78
Total 283,887.39 539.87 (3,362.53) 281,064.73
* includes current maturities of long term debt
For FY 2019-20:
(` in million)
444 Sl. No. Particulars As at Financing Non-cash As at
March 31, 2019 cash Flows changes March 31, 2020
I Borrowing - Non Current*
1 External commercial borrowing (ECB ) 34,500.76 (4,349.10) 2,692.59 32,844.25
2 Loan from Oil Industry Development Board 9,603.75 25,098.12 - 34,701.87
(OIDB)
3 Non Convertible Debentures 19,999.61 80,586.45 (11.55) 100,574.51
4 Compulsorily Convertible Debentures^ - 9,989.10 0.27 9,989.37
5 Deferred payment liabilities - VAT Loan 225.56 423.85 (288.63) 360.78
6 Deferred payment liabilities - CST 218.63 (218.63) -
7 Working capital loan from banks 68.52 27,752.88 2,203.63 30,025.03
 ANNUAL REPORT
2020-21

(` in million)
Sl. No. Particulars As at Financing Non-cash As at
March 31, 2019 cash Flows changes March 31, 2020
8 Foreign Currency Bonds 230,155.89 21,269.96 21,094.28 272,520.13
9 Foreign Currency Term Loan (FCTL) 267,248.92 62,066.40 28,017.20 357,332.52
10 Rupee Term Loan 11,999.70 (5,142.98) - 6,856.72
11 Other Loans 3,002.11 (265.59) 26.29 2,762.81
12 Other financial liabilities (Non current) - Net 1,698.35 (1,566.04) 1,618.35 1,750.66
Derivative Contracts
Total 578,721.80 215,644.42 55,352.43 849,718.65
II Borrowing - Current
1 Working capital loan from banks 172,066.07 (119,643.94) 240.68 52,662.81
2 Commercial Papers 71,464.22 (37,397.45) 264.58 34,331.35

Consolidated Financial Statements

3 Non Convertible Debentures 3,700.00 (3,791.15) 91.15 -
4 Loan repayable on demand 370.00 4,362.16 - 4,732.16
5 Other Loans 13,897.33 99.40 2.69 13,999.42
6 Foreign currency Terms Loans 129,504.85 (50,766.53) 6,252.03 84,990.35
7 Rupee Term Loans 73,660.44 15,606.30 3,904.56 93,171.30
Total 464,662.91 (191,531.21) 10,755.69 283,887.39
* includes current maturities of long term debt, ^Restated, refer Note No. 64

FOR AND ON BEHALF OF THE BOARD

Sd/- Sd/- Sd/-
(M.E.V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Officer Chairman & Managing Director
Place: New Delhi Place: New Delhi (DIN: 07905656)
Place: New Delhi
In terms of our report of even date attached
For G M Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No.000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sandeep Kumar Sawaria) (Sunil Kumar Gupta) 445
Partner (M. No. 048243) Partner (M. No. 061771) Partner (M. No. 084884)
Place: Mumbai Place: Kolkata Place: New Delhi

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Varun Bansal) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M. No. 402856) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai
June 24, 2021
 THE UNSTOPPABLE
ENERGY SOLDIERS
Notes to the Consolidated Financial Statements for the year ended March 31, 2021
1. Corporate information 3. Significant Group Accounting Policies
Oil and Natural Gas Corporation Limited 3.1. Statement of compliance
(“ONGC” or “the Company”) is a public limited
The Consolidated Financial Statements have
company domiciled and incorporated in India
been prepared in accordance with Ind AS
having its registered office at Deendayal Urja
notified under the Companies (Indian Accounting
Bhawan, 5, Nelson Mandela Marg, Vasant Kunj,
Standards) Rules, 2015 (as amended), the
New Delhi – 110070. The Company’s shares are
Companies Act, 2013 and Guidance Note on
listed and traded on Bombay Stock Exchange
Accounting for Oil and Gas Producing Activities
and National Stock Exchange in India. The
(Ind AS) issued by the Institute of Chartered
Consolidated Financial Statements relate to
Accountants of India.
the Company, its Subsidiaries, Joint Venture
Entities and Associates. The Group (comprising 3.2. Basis of preparation
of the Company and its subsidiaries), Joint
The Consolidated Financial Statements have
Venture Entities and Associates are mainly
been prepared on going concern basis on
engaged in exploration, development and
the historical cost convention using accrual
production of crude oil, natural gas and value
system of accounting except for certain assets
added products in India and acquisition of oil
and liabilities which are measured at fair value/
and Gas acreages outside India for exploration,
amortised cost/Net present value at the end
development and production, downstream
of each reporting period, as explained in the
(Refining and marketing of petroleum products),
accounting policies below:
Petrochemicals, Power Generation, LNG supply,
Pipeline Transportation, SEZ development and Historical cost is generally based on the fair
Helicopter services. value of the consideration given in exchange for
goods and services.
2. Application of new Indian Accounting
Standards (Ind AS) As the operating cycle cannot be identified
in normal course due to the special nature of
All the Indian Accounting Standards issued
industry, the same has been assumed to have
under section 133 of the Companies Act, 2013
duration of 12 months. Accordingly, all assets
and notified by the Ministry of Corporate Affairs
and liabilities have been classified as current
(MCA) under the Companies (Indian Accounting
or non-current as per the operating cycle and
Standards) Rules, 2015 (as amended) till the
other criteria set out in Ind AS-1 ‘Presentation
financial statements are approved have been
of Financial Statements’ and Schedule III to the
considered in preparation of these Financial
Companies Act, 2013.
Statements.
The Consolidated Financial Statements are
2.1. Standards issued but not yet effective
presented in Indian Rupees and all values are
The MCA has notified the Companies (Indian rounded off to the nearest two decimal million
446 Accounting Standards/ Ind AS) Amendment except otherwise stated.
Rules, 2020 on June 18, 2021, whereby the
Fair value measurement
amendments to various Indian Accounting
Standards has been made applicable with the Fair value is the price that would be received to
immediate effect from the date of the notification sell an asset or paid to transfer a liability in an
i.e. effective for financial year ended March 21, orderly transaction between market participants
2022 onwards. at the measurement date under current market
conditions.
The amendments made vide aforesaid
notification dated June 18, 2021 are largely The Group categorizes assets and liabilities
clarificatory and editorial in nature, the Company measured at fair value into one of the three
is evaluating the requirements of the same and levels depending on the ability to observe inputs
its effect on the Financial Statements is not likely employed in their measurement which are
to be material. described as follows:
 ANNUAL REPORT
2020-21
• Level 1 inputs are quoted prices (unadjusted) in on a line-by-line basis by adding together the
active markets for identical assets or liabilities. book values of like items of assets, liabilities,
equity, income, expenses and cash flow after
• Level 2 inputs are inputs that are observable,
eliminating in full intra-group assets, liabilities,
either directly or indirectly, other than quoted
equity, income, expenses and cash flow relating
prices included within level 1 for the assets or
to intra-group transactions and unrealized
liabilities.
profits. Unrealized losses are also eliminated
• Level 3 inputs are unobservable inputs for unless the transaction provides evidence of
the asset or liability reflecting significant an impairment of the asset transferred. Such
modifications to observable related market data unrealized profits/losses are fully attributed to
or Group’s assumptions about pricing by market the Company.
participants.
Profit or loss and each component of other
3.3. Principles of Consolidation comprehensive income are attributed to
the owners of the Company and to the non-
The Consolidated Financial Statements
controlling interests. Total comprehensive
incorporate the financial statements of the
income is attributed to the owners of the
Company and its subsidiaries (collectively

Consolidated Financial Statements

Company and to the non-controlling interests
referred as “the Group”). The Group has
even if this results in the non-controlling interests
investments in associates and joint ventures
having a deficit balance.
which are accounted using equity method
in these consolidated financial statements. Changes in the Group’s ownership interests in
Refer Note No. 3.7 for the accounting policy of subsidiaries that do not result in the Group losing
investment in associates and joint ventures in control over the subsidiaries are accounted for
the Consolidated Financial Statements. as equity transactions. The carrying amounts
of the Group’s interests and the non-controlling
Subsidiaries are entities controlled by the
interests are adjusted to reflect the changes in
Company. The Company controls an entity
their relative interests in the subsidiaries. Any
when it is exposed, or has rights to variable
difference between the amount by which the
returns from its involvement with the entity and
non-controlling interests are adjusted and the
has the ability to affect those returns through
fair value of the consideration paid or received
its power to direct the relevant activities of the
is recognized directly in equity and attributed to
entity. Subsidiaries are consolidated from the
the owners of the Company.
date of their acquisition (except for Business
Combinations under Common Control), being When the Group loses control of a subsidiary,
the date on which the Company obtains control a gain or loss is recognized in the consolidated
and continue to be consolidated until the date statement of profit and loss and is calculated
that such control ceases. as the difference between (i) the aggregate of
the fair value of the consideration received and
The Consolidated financial statements are
the fair value of any retained interest and (ii) the
prepared using uniform accounting policies
previous carrying amount of the assets (including
consistently for like transactions and other
goodwill) and liabilities of the subsidiary and any
447
events in similar circumstances and are
non-controlling interests. All amounts previously
presented to the extent possible, in the
recognized in other comprehensive income
same manner as the Company’s Standalone
in relation to that subsidiary are accounted for
Financial Statements except otherwise stated.
as if the Group had directly disposed of the
When necessary, adjustments are made to the
related assets or liabilities of the subsidiary (i.e.
financial statements of subsidiaries to bring
reclassified to the consolidated statement of
their accounting policies in line with the Group’s
profit and loss or transferred to another category
Significant Accounting Policies.
of equity as specified/permitted by applicable
The Consolidated Financial Statements have Ind AS). The fair value of any investment retained
been prepared by combining the financial in the former subsidiary at the date when control
statements of the company and its subsidiaries is lost is regarded as the fair value on initial
 THE UNSTOPPABLE
ENERGY SOLDIERS
recognition for subsequent accounting under amounts that Ind AS requires for the purposes
Ind AS 109, or the cost on initial recognition as of calculating the bargain purchase. If the gain
investment in an associate or a joint venture, remains after this reassessment and review, the
when applicable. Group recognises it in other comprehensive
income and accumulates the same in equity
3.4. Business Combination
as capital reserve. This gain is attributed to the
Acquisitions of businesses (except for Business acquirer. If there does not exist clear evidence
Combinations under Common Control) are of the underlying reasons for classifying the
accounted for using the acquisition method. business combination as a bargain purchase,
The consideration transferred in a business the Group recognises the gain, after reassessing
combination is measured at fair value which is and reviewing (as described above), directly in
calculated as the sum of the acquisition date fair equity as capital reserve.
values of the assets transferred by the Group,
When the consideration transferred by the
liabilities incurred by the Group to the former
Group in a business combination includes
owners of the acquiree and the equity interests
assets or liabilities resulting from a contingent
issued by the Group in exchange of control
consideration arrangement, the contingent
of the acquiree. Acquisition related costs are
consideration is measured at its acquisition date
generally recognized in consolidated statement
fair value and included as part of the consideration
of profit and loss as incurred.
transferred in a business combination. Changes
At the acquisition date, the identifiable assets in the fair value of the contingent consideration
acquired and the liabilities assumed are that qualify as measurement period adjustments
recognized at their fair value, except that: are adjusted retrospectively, with corresponding
adjustments against goodwill or capital reserve,
- Deferred tax assets or liabilities, and assets
as the case may be. Measurement period
or liabilities related to employee benefit
adjustments are adjustments that arise from
arrangements are recognized and measured in
additional information obtained by the Group
accordance with Ind AS 12 ‘Income Taxes’ and
during the ‘measurement period’ about facts
Ind AS 19 ‘Employee Benefits’ respectively;
and circumstances that existed at the acquisition
- Assets (or disposal groups) that are classified as date. Measurement period does not exceed one
held for sale in accordance with Ind AS 105 ‘Non- year from the acquisition date.
current Assets Held for Sale and Discontinued
The subsequent accounting for changes in the
Operations’ are measured in accordance with
fair value of the contingent consideration that do
that Standard.
not qualify as measurement period adjustments
Goodwill is measured as the excess of the sum depends on how the contingent consideration
of the consideration transferred, the amount of is classified. Contingent consideration that
any non-controlling interests in the acquiree, is classified as equity is not remeasured at
and the fair value of the acquirer’s previously subsequent reporting dates and its subsequent
held equity interest in the acquiree (if any) over settlement is accounted for within equity.
448 the net of the acquisition date amounts of the Contingent consideration that is classified
identifiable assets acquired and the liabilities as an asset or a liability is remeasured at fair
assumed. value at subsequent reporting dates with the
corresponding gain or loss being recognized in
In case of a bargain purchase, before
the consolidated statement of profit and loss.
recognising a gain in respect thereof, the Group
determines whether there exists clear evidence When a business combination is achieved
of the underlying reasons for classifying the in stages, the Group’s previously held equity
business combination as a bargain purchase. interest in the acquiree is remeasured to its
Thereafter, the Group reassesses whether it has acquisition date fair value and the resulting gain
correctly identified all of the assets acquired or loss, if any, is recognized in the consolidated
and all of the liabilities assumed and recognises statement of profit and loss. Amounts arising
any additional assets or liabilities that are from interests in the acquiree prior to the
identified in that reassessment. The Group then acquisition date that have previously been
reviews the procedures used to measure the recognized in other comprehensive income are
 ANNUAL REPORT
2020-21
reclassified to the consolidated statement of The difference, if any, between the amounts
profit and loss where such treatment would be recorded as share capital issued plus any
appropriate if that interest were disposed of. additional consideration in the form of cash or
other assets and the amount of share capital of
If the initial accounting for a business combination
the transferor is transferred to capital reserve
is incomplete by the end of the reporting period in
and is presented separately from other capital
which the combination occurs, the Group reports
reserves.
provisional amounts for the items for which the
accounting is incomplete. Those provisional 3.5. Non-controlling interests
amounts are adjusted during the measurement
Non-controlling interests represent the
period recognising additional assets or liabilities
proportion of income, other comprehensive
(if any) to reflect new information obtained
income and net assets in subsidiaries that is not
about facts and circumstances that existed at
attributable to the Company’s shareholders.
the acquisition date that, if known, would have
affected the amounts recognized at that date. Non-controlling interests are initially measured
at the proportionate share of the recognized
Business Combination under Common
amounts of the acquiree’s identifiable net assets.
control

Consolidated Financial Statements

Subsequent to acquisition, the carrying amount
A business combination involving entities or of non-controlling interests is the amount of
businesses under common control is a business the interest at initial recognition plus the non-
combination in which all of the combining controlling interests’ share of subsequent
entities or businesses are ultimately controlled changes in equity.
by the same party or parties both before and
3.6. Goodwill on consolidation
after the business combination and the control is
not transitory. The transactions between entities Goodwill arising on an acquisition of a business
under common control are specifically covered is carried at cost as established at the date of
by Appendix C to Ind AS 103 and are accounted acquisition of the business less accumulated
for using the pooling-of-interest method as impairment losses, if any.
follows:
For the purposes of impairment testing, goodwill
• The assets and liabilities of the combining is allocated to each of the Group’s cash-
entities are reflected at the carrying generating units (or groups of cash-generating
amounts. units) that is expected to benefit from the
synergies of the combination.
• No adjustments are made to reflect
fair values, or recognize new assets A cash-generating unit to which goodwill has
or liabilities. Adjustments are made to been allocated is tested for impairment annually,
harmonize significant accounting policies. or more frequently when there is an indication that
the cash generating unit may be impaired. If the
• The financial information in the financial
recoverable amount of the cash-generating unit
statements in respect of prior periods is
is less than its carrying amount, the impairment
restated as if the business combination
loss is allocated first to reduce the carrying
449
has occurred from the beginning of
amount of any goodwill allocated to the cash
the preceding period in the financial
generating unit and then to the other assets of
statements, irrespective of the actual date
the unit pro rata based on the carrying amount
of the combination.
of each asset in the unit. Any impairment loss for
The balance of the retained earnings appearing goodwill is recognized directly in Consolidated
in the financial statements of the transferor is Statement of Profit and Loss. An impairment
aggregated with the corresponding balance loss recognized for goodwill is not reversed in
appearing in the financial statements of the subsequent periods.
transferee. The identity of the reserves are
On disposal of the relevant cash-generating unit,
preserved and the reserves of the transferor
the attributable amount of goodwill is included in
become the reserves of the transferee.
the determination of the Profit and Loss.
 THE UNSTOPPABLE
ENERGY SOLDIERS
3.7. Investments in Associates and Joint Ventures joint ventures and is mandatorily required to
purchase such debentures, a financial liability
An Associate is an entity over which the Group
is recognized at fair value with a corresponding
has significant influence. Significant influence
debit to deemed investment. Financial liability is
is the power to participate in the financial and
subsequently measured at amortized cost. The
operating policy decisions of the investee but is
deemed investment is added to the carrying
not control or joint control over those policies.
amount of investment in joint ventures and
A Joint Venture is a joint arrangement whereby carried at cost.
the parties that have joint control of the
Unrealized gains on transactions between the
arrangement have rights to the net assets of the
group and its Associate & Joint Venture are
arrangement. Joint control is the contractually
eliminated to the extent of the Group’s interest in
agreed sharing of control of an arrangement,
Associate & Joint Venture. Unrealized losses are
which exists only when decisions about the
also eliminated to the extent of Group’s interest
relevant activities require unanimous consent of
unless the transaction provides evidence of an
the parties sharing control.
impairment of the asset transferred.
The results, assets and liabilities of associates
If an associate or a joint venture uses accounting
or joint ventures are incorporated in the
policies other than those of the Group accounting
Consolidated Financial Statements using the
policies for like transactions and events in
equity method of accounting, except when the
similar circumstances, adjustments are made to
investment, or a portion thereof, is classified as
make the associate’s or joint venture’s financial
held for sale, in which case it is accounted for in
statements confirm to the Group’s significant
accordance with Ind AS 105 ‘Non-current Assets
accounting policies before applying the equity
Held for Sale and Discontinued Operations’.
method, unless, in case of an associate where it
Under the equity method, an investment in an
is impracticable do so.
associate or a joint venture is initially recognized
in the Consolidated Balance Sheet at cost and An investment in an Associate or a Joint Venture
adjusted thereafter to recognize the Group’s is accounted for using the equity method from
share of profit or loss and other comprehensive the date on which the investee becomes an
income of the associate or joint venture. Associate or a Joint Venture. On acquisition of
Distributions received from an associate or a the investment in an Associate or a Joint Venture,
joint venture reduces the carrying amount of any excess of the cost of the investment over
investment. When the Group’s share of losses the Group’s share of the net fair value of the
of an associate or a joint venture exceeds identifiable assets and liabilities of the investee
the Group’s interest in that associate or joint is recognized as goodwill, which is included
venture (which includes any long term interests within the carrying amount of the investment.
that, in substance, form part of the Group’s net Any excess of the Group’s share of the net fair
investment in the associate or joint venture), value of the identifiable assets and liabilities over
the Group discontinues recognizing its share of the cost of the investment, after reassessment,
further losses. Additional losses are recognized is recognized directly in equity as capital reserve
450 only to the extent that the Group has legal or in the period in which the investment is acquired.
constructive obligations or made payments on
After application of the equity method of
behalf of the associate or joint venture.
accounting, the Group determines whether
Loans advanced to Associate & Joint Venture there is any objective evidence of impairment
and that have the characteristics of financing as a result of one or more events that occurred
through equity are also included in the after the initial recognition of the net investment
investment of the Group’s consolidated balance in an associate or a joint venture and that event
sheet. The Group’s share of amounts recognized (or events) has an impact on the estimated
directly in equity by Associate & Joint Venture future cash flows from the net investment that
is recognized in the Group’s consolidated can be reliably estimated. If there exists such an
statement of changes in equity. objective evidence of impairment, then Group
recognises impairment loss with respect to the
Where the group is a sponsor in respect of
Group’s investment in an associate or a joint
Compulsory Convertible Debentures issued by
 ANNUAL REPORT
2020-21
venture. When necessary, the entire carrying When the Group reduces its ownership interest
amount of the investment (including goodwill) in an associate or a joint venture but the Group
is tested for impairment in accordance with Ind continues to use the equity method, the Group
AS 36 ‘Impairment of Assets’ as a single asset reclassifies to the consolidated statement of
by comparing its recoverable amount (higher of profit and loss the proportion of the gain or loss
value in use and fair value less costs of disposal) that had previously been recognized in other
with its carrying amount. Any impairment loss comprehensive income relating to that reduction
recognized forms part of the carrying amount of in ownership interest as if that gain or loss would
the investment. Any reversal of that impairment be reclassified to the consolidated statement of
loss is recognized in accordance with Ind AS 36 profit and loss on the disposal of the related
to the extent that the recoverable amount of the assets or liabilities.
investment subsequently increases.
When a group entity transacts with an associate
The Group discontinues the use of the equity or a joint venture of the Group, profits and
method from the date when the investment losses resulting from the transactions with the
ceases to be an associate or a joint venture, associate or joint venture are recognized in the
or when the investment is classified as held for Group’s consolidated financial statements only

Consolidated Financial Statements

sale. When the Group retains an interest in the to the extent of interests in the associate or joint
former associate or joint venture and the retained venture that are not related to the Group.
interest is a financial asset, the Group measures
3.8. Interests in Joint Operations
the retained interest at fair value at that date
and the fair value is regarded as its fair value A Joint Operation is a joint arrangement
on initial recognition in accordance with Ind whereby the parties that have joint control of
AS 109 ‘Financial Instruments’. The difference the arrangement have rights to the assets,
between the carrying amount of the associate or and obligations for the liabilities, relating to the
joint venture at the date the equity method was arrangement. Joint control is the contractually
discontinued, and the fair value of any retained agreed sharing of control of an arrangement,
interest and any proceeds from disposing of a which exists only when decisions about the
part interest in the associate or joint venture is relevant activities require unanimous consent of
included in the determination of the gain or loss the parties sharing control.
on disposal of the associate or joint venture. In
The Group has Joint Operations in the nature
addition, the Group accounts for all amounts
of Production Sharing Contracts (PSC) and
previously recognized in other comprehensive
Revenue Sharing Contracts (RSC) with the
income in relation to that associate or joint
Government of India/other countries and various
venture on the same basis as would be required
body corporates for exploration, development
if that associate or joint venture had directly
and production activities.
disposed of the related assets or liabilities.
Therefore, if a gain or loss previously recognized The Group’s share in the assets and liabilities
in other comprehensive income by that associate along with attributable income and expenditure
or joint venture would be reclassified to the of the Joint Operations is merged on line by line
consolidated statement of profit and loss on the basis with the similar items in the Consolidated
451
disposal of the related assets or liabilities, the Financial Statements and adjusted for leases,
Group reclassifies the gain or loss from equity to depreciation, overlift/ underlift, depletion,
the consolidated statement of profit and loss (as survey, dry wells, decommissioning provision,
a reclassification adjustment) when the equity impairment and sidetracking in accordance with
method is discontinued. the accounting policies of the Group.
The Group continues to use the equity method The hydrocarbon reserves in such areas are
when an investment in an associate becomes taken in proportion to the participating interest
an investment in a joint venture or an investment of the Group.
in a joint venture becomes an investment in an
With respect to use of leased assets in the
associate. There is no remeasurement to fair
joint operations, the Group recognizes lease
value upon such changes in ownership interests.
liability and corresponding right-of-use asset
 THE UNSTOPPABLE
ENERGY SOLDIERS
in accordance with the terms of related joint assets and the grants are recognized and
operating agreement/production sharing disclosed as ‘deferred income’ under non-
contracts. current liability in the Consolidated Balance
Sheet and transferred to the Consolidated
Gain or loss on sale of interest in a joint
Statement of Profit and Loss on a systematic
operation, is recognized in the Consolidated
and rational basis over the useful lives of the
Statement of Profit and Loss, except that no
related assets.
gain is recognized at the time of such sale if
substantial uncertainty exists about the recovery All Non-monetary grants received are recognized
of the costs applicable to the retained interest for both asset and grant at nominal value.
or if the Group has substantial obligation for
The benefit of a government loan at a rate
future performance. The gain in such situation is
below the market rate of interest is treated as
treated as recovery of cost related to that block.
a government grant, and is measured as the
In case of joint operations outside India, the difference between proceeds received and the
long term employee benefits are recognised in fair value of the loan based on prevailing market
accordance with the laws of the their respective interest rates.
jurisdiction.
3.11. Property Plant and Equipment (other than Oil
3.9. Non-current assets held for sale and Gas Assets) and Right of Use Assets
Non-current assets or disposal groups classified The Group (except for ONGC Videsh Ltd where
as held for sale are measured at the lower of due to change in functional currency, this
carrying amount and fair value less costs to sell. exemption is not available as per para D7AA
of Ind AS 101) has elected to continue with
Non-current assets or disposal groups are
the carrying value of all of its Property Plant
classified as held for sale if their carrying
and Equipment recognized as of April 1, 2015
amounts will be recovered principally through a
(transition date) measured as per the Previous
sale transaction rather than through continuing
GAAP and use that carrying value as its deemed
use. This condition is regarded as met only
cost as of the transition date except adjustment
when the sale is highly probable and the asset
related to decommissioning liabilities.
or disposal group is available for immediate
sale in its present condition subject only to Land and buildings held for use in the
terms that are usual and customary for sales of production or supply of goods or services,
such assets. Management must be committed or for administrative purposes, are stated in
to the sale, which should be expected to qualify the Balance Sheet at cost less accumulated
for recognition as a completed sale within one depreciation and impairment losses, if any.
year from the date of classification as held for Freehold land and land under perpetual lease
sale, and actions required to complete the plan are not depreciated. However, freehold land
of sale should indicate that it is unlikely that relating to overseas oil & gas operations are
significant changes to the plan will be made or depreciated on straight line basis over the
that the plan will be withdrawn. duration of the license period.
452
Property, Plant and Equipment (PPE) and Property, Plant and Equipment (PPE) in the
intangible assets are not depreciated or course of construction for production, supply
amortized once classified as held for sale. or administrative purposes are carried at cost,
less any recognized impairment loss. The cost
3.10. Government Grant
of an asset comprises its purchase price or its
Government grants are not recognized until construction cost (net of applicable tax credits),
there is reasonable assurance that the Group any cost directly attributable to bring the asset
will comply with the conditions attached to them into the location and condition necessary for it to
and that the grants will be received. be capable of operating in the manner intended
by the Management and decommissioning cost
Monetary Government grants, whose primary
as per Note No. 3.17. It includes professional
condition is that the Group should purchase,
fees and, for qualifying assets, borrowing costs
construct or otherwise acquire non-current
capitalised in accordance with the Group’s
 ANNUAL REPORT
2020-21
accounting policy. Such properties are classified Assets and properties under construction)
to the appropriate categories of PPE when
Depreciation is provided on the cost of PPE of E&P
completed and ready for intended use. Parts of
operations less their residual values, using the written
an item of PPE having different useful lives and
down value method (except for components of dry
significant value and subsequent expenditure
docking capitalized) over the useful life of PPE as
on Property, Plant and Equipment arising on
stated in the Schedule II to the Companies Act, 2013
account of capital improvement or other factors
or based on technical assessment by the Company.
are accounted for as separate components.
In case of PPE pertaining to overseas blocks where
Expenditure on dry docking of rigs and vessels
the license period is less than the useful life of PPE,
are accounted for as component of relevant
the company writes off the PPE in the financial
assets.
year in which the license is expired or the block is
The estimated useful lives, residual values and surrendered, if no future economic benefits from the
depreciation method are reviewed on an annual PPE are expected. Estimated useful lives of these
basis and if necessary, changes in estimates are assets are as under:
accounted for prospectively.
Description Useful life in
Depreciation on subsequent expenditure on

Consolidated Financial Statements

years
PPE arising on account of capital improvements Building & Bunk Houses 3 to 60
or other factors is provided for prospectively
over the remaining useful life. Plant & Equipment 2 to 40
Furniture and Fixtures 3 to 25
Depreciation on additions/deletions to PPE
Vehicles, Ships and Boats 3 to 20
during the year is provided for on a pro-rata
basis with reference to the date of additions/ Office Equipment 2 to 20
deletions except low value items not exceeding Depreciation on refurbished/revamped PPE
`5,000/- which are fully depreciated at the time of which are capitalized separately is provided
addition of Assets related to operations in India for over the reassessed useful life which is not
and items not exceeding US$ 100 which are fully more than the life specified in Schedule II to the
depreciated at the time of addition of Assets Companies Act, 2013.
related to operations outside India. In case of
a subsidiary HPCL, depreciation is charged on Depreciation on expenditure on dry docking of
additions / deletions on pro-rata monthly basis rigs and vessels capitalized as component of
including the month of addition / deletion. relevant rig / vessels is charged over the dry
dock period on straight line basis.
Right-of-use assets are depreciated on a
straight-line basis over the lease term or useful Depreciation on PPE including support
life of the underlying asset, whichever is less. equipment and facilities used for exploratory/
development drilling is initially capitalised as
An item of PPE is de-recognized upon disposal part of drilling cost and expensed/depleted as
or when no future economic benefits are per Note No. 3.15. Depreciation on equipment/
expected to arise from the continued use of the assets deployed for survey activities is charged
asset. Any gain or loss arising on the disposal
453
to the Consolidated Statement of Profit and
or retirement of an item of PPE is determined Loss.
as the difference between the sales proceeds
and the carrying amount of the asset and is (b) Depreciation- PPE of Refining & Marketing,
recognized in the consolidated Statement of Crude oil Transportation business (other
Profit and Loss. than freehold land and properties under
construction)
Depreciation of these PPE commences when
the assets are ready for their intended use. Depreciation is provided on the cost of PPE
less their residual values of asset associated
The Group account for their depreciation on with Refinery, Petrochemical, Crude oil
following basis:- Transportation, using Straight Line Method, over
(a) Depreciation- PPE of Exploration & Production the useful life as specified in Schedule II to the
(E&P) (other than freehold land, Oil and Gas Companies Act, 2013, except in case of certain
 THE UNSTOPPABLE
ENERGY SOLDIERS
components of the Plant and Equipment whose the carrying value of all of its intangible assets
useful lives are determined based on technical recognized as of April 1, 2015 (transition date)
evaluation. Useful lives are as follows:- measured as per the Previous GAAP and use
that carrying value as its deemed cost as of
Asset categories Useful life in years the transition date except adjustment related to
Buildings 1-60 decommissioning liabilities.
Plant & Machinery 2-40 Intangible assets are carried at cost net of
Furniture 3-10 accumulated amortization and accumulated
Office equipment 3-15 impairment losses, if any. Internally generated
Vehicles 4-15 intangibles, excluding development costs, are
Railway Siding 15 not capitalised and the related expenditure is
reflected in Statement of Profit and Loss in the
Roads 5-10
period in which the expenditure is incurred.
In respect of refining & marketing business, the Development costs are capitalised if technical
useful lives of following assets are based on and commercial feasibility of the project is
internal technical assessment: demonstrated, future economic benefits are
probable, the Group has an intention and ability
Asset categories Useful life in years to complete and use or sell the asset and the
Plant and Machinery 15 years costs can be measured reliably.
relating to Retail Outlets
(other than Storage tanks In cases where, the Group has constructed
and related equipment) assets and the Group has only a preferential right
to use, these assets are classified as intangible
Cavern Structure 60 years
assets and are amortised (after retaining the
LPG cylinders & regula- 15 years residual value, if applicable) over their useful
tors (excluding cylinders life or the period of the agreement, whichever is
held for sale) lower.
CNG Compressors 10 years Intangible assets with finite useful lives that
CNG Cascades and SS 20 years are acquired separately are amortized on a
tubing in CNG Stations straight-line basis over their estimated useful
In cases of LPG Cylinders & pressure regulators life. The estimated useful life is reviewed at the
and Catalysts having Precious Metals, with due end of each reporting period and the effect of
consideration to expected realization, a higher any changes in estimate being accounted for
residual value is considered. prospectively and tested for impairment.
Expenditure on overhaul and repairs on account Intangible assets with indefinite useful lives such
of planned shutdown which are of significant as ‘right of way’ are not subject to amortisation
value (5% of the value of particular assets) is and are carried at cost less accumulated
capitalized as component of relevant items of impairment losses, if any. The useful lives are
454 PPE and is depreciated over the period till next reviewed at each period to determine whether
shutdown on straight line basis. Catalyst whose events and circumstances continue to support
life is more than one year is capitalised as an indefinite useful life assessment for that
property, plant and equipment and depreciated asset.
over the guaranteed useful life as specified by An intangible asset is derecognized on disposal,
the supplier when the catalyst is put to use. or when no future economic benefits are
3.12. Intangible Assets expected from use or disposal. Gains or losses
arising from derecognition of an intangible
(i) Intangible assets acquired separately asset, measured as the difference between the
The Group (except for ONGC Videsh Ltd where net disposal proceeds and the carrying amount
due to change in functional currency this of the asset, and recognized in the Consolidated
exemption is not available as per para D7AA Statement of Profit and Loss, when the asset is
of Ind AS 101) has elected to continue with derecognized.
 ANNUAL REPORT
2020-21
Technical know-how / license fee relating to of each reporting period to determine whether
production process and process design are there is any significant indication that those
recognized as Intangible Assets. assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of
Estimated lives of intangible assets (acquired)
the asset is estimated in order to determine the
are as follows:
extent of the impairment loss (if any). When it is
• Software : 2 to 10 years not possible to estimate the recoverable amount
of an individual asset, the Group estimates the
• Technical know-how/license fees : 2 to 10
recoverable amount of the cash-generating unit
years
to which the asset belongs.
• License and Franchise : 3 years
Intangible assets with indefinite useful lives such
• Right to use-wind mills : 22 years as “Right of way” and intangible assets not yet
available for use are tested for impairment at
(ii) Intangible assets under development -
least annually or whenever there is an indication
Exploratory Wells in Progress
that the asset may be impaired.
All exploration and evaluation costs incurred in
Recoverable amount is the higher of fair value

Consolidated Financial Statements

drilling and equipping exploratory and appraisal
less costs of disposal and value in use. In
wells, are initially capitalized as Intangible
assessing value in use, the estimated future
assets under development - Exploratory Wells in
cash flows are discounted to their present value
Progress till the time these are either transferred
using a pre-tax discount rate that reflects current
to Oil and Gas Assets on completion as per
market assessments of the time value of money
Note No. 3.15 or expensed as exploration
and the risks specific to the asset for which the
and evaluation cost (including allocated
estimates of future cash flows have not been
depreciation) as and when determined to be dry
adjusted.
or of no further use, as the case may be.
If the recoverable amount of an asset (or cash-
Cost of drilling exploratory type stratigraphic
generating unit) is estimated to be less than
test wells are initially capitalized as Intangible
its carrying amount, the carrying amount of
assets under development - Exploratory Wells in
the asset (or cash-generating unit) is reduced
Progress till the time these are either transferred
to its recoverable amount. An impairment loss
to Oil and Gas Assets as per note no. 3.15
is recognized immediately in the Consolidated
or expensed as exploration and evaluation
Statement of Profit and Loss.
cost (including allocated depreciation) as
when determined to be dry or the petroleum An assessment is made at the end of each
exploration license/field/project is surrendered. reporting period to see if there are any indications
that impairment losses recognized earlier may
Costs of exploratory wells are not carried over
no longer exist or may have come down. The
unless it could be reasonably demonstrated
impairment loss is reversed, if there has been a
that there are indications of sufficient quantity of
change in the estimates used to determine the
reserves and sufficient progress has been made
in assessing the reserves and the economic and
asset’s recoverable amount since the previous 455
impairment loss was recognized. If it is so, the
operating viability of the project. All such carried
carrying amount of the asset is increased to
over costs are subject to review for impairment
the lower of its recoverable amount and the
as per the policy of the Group.
carrying amount that have been determined, net
3.13. Impairment of tangible, intangible assets of depreciation, had no impairment loss been
(other than goodwill) and right-of-use assets recognized for the asset in prior years. After a
The Group reviews the carrying amount of its reversal, the depreciation charge is adjusted
tangible and intangible assets (Oil and Gas in future periods to allocate the asset’s revised
Assets, Development Wells in Progress (DWIP), carrying amount, less any residual value, on a
Property, Plant and Equipment (including Capital systematic basis over its remaining useful life.
Works in Progress) and Right–of use assets Reversals of Impairment loss are recognized in
of a “Cash Generating Unit” (CGU) at the end the Consolidated Statement of Profit and Loss.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Exploration and Evaluation assets are tested for initially capitalized as ‘Development Wells
Impairment when further exploration activities are in Progress’ and transferred to ‘Oil and Gas
not planned in near future or when sufficient data Assets’ on “completion”.
exists to indicate that although a development
(v) Production costs
is likely to proceed, the carrying amount of the
exploration asset is unlikely to be recovered in Production costs include pre-well head and
full from successful development or by sale. post-well head expenses including depreciation
Impairment loss is reversed subsequently, to and applicable operating costs of support
the extent that conditions for impairment are no equipment and facilities.
longer present.
(vi) Impairment of Acquisition costs relating to
3.14. Exploration & Evaluation, Development participating rights
and Production Costs
For the purposes of impairment testing,
(i) Pre-acquisition cost acquisition cost is allocated to each of the
Group’s CGUs (or groups of CGUs) that is
Expenditure incurred before obtaining the
expected to benefit from the synergies of the
right(s) to explore, develop and produce oil and
combination.
gas are expensed as and when incurred.
A CGU to which acquisition cost has been
(ii) Acquisition cost
allocated is tested for impairment annually
Acquisition costs of an Oil and Gas Asset are when there is an indication that the unit may be
costs related to right to acquire mineral interest impaired. If the recoverable amount of the cash-
and are accounted as follows:- generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce
Exploration and development stage
the carrying amount of any acquisition cost
Acquisition cost relating to projects under allocated to the unit and then to the other assets
exploration or development are initially of the unit pro rata based on the carrying amount
accounted as Intangible Assets under of each asset in the unit. An impairment loss
development - exploratory wells in progress recognized for acquisition cost is not reversed
or Oil & Gas Assets under development - in subsequent periods.
development wells in progress respectively.
On disposal of the relevant CGU, the attributable
Such costs are capitalized by transferring to
carrying amount of acquisition cost is included
Oil and Gas Assets when a well is ready to
in the determination of the profit or loss on
commence commercial production. In case
disposal.
of abandonment / relinquishment of Intangible
Assets under development - exploratory wells in 3.15. Oil and Gas Assets
progress, such costs are written off.
The Group (except for ONGC Videsh Ltd where
Production stage due to change in functional currency this
exemption is not available as per para D7AA
Acquisition costs of a producing Oil and Gas
456 Assets are capitalized as proved property
of Ind AS 101 ) has elected to continue with the
carrying value of all of its Oil and Gas assets
acquisition cost under Oil and Gas Assets and
recognized as of April 1, 2015 (transition date)
amortized using the unit of production method
measured as per the Previous GAAP and use
over proved reserves of underlying assets.
that carrying value as its deemed cost as of
(iii) Survey cost the transition date except adjustment related to
decommissioning liabilities.
Cost of Survey and prospecting activities
conducted in the search of oil and gas are Oil and Gas Assets are stated at historical cost
expensed as exploration cost in the year in less accumulated depletion and impairment
which these are incurred. losses. These are created in respect of an area
/ field having proved developed oil and gas
(iv) Oil & Gas asset under development -
reserves, when the well in the area / field is ready
Development Wells in Progress
to commence commercial production.
All costs relating to Development Wells are
Cost of temporary occupation of land,
 ANNUAL REPORT
2020-21
successful exploratory wells, all development or constructive obligation to plug and abandon
wells (including service wells), allied facilities, a well, dismantle and remove a facility or an item
depreciation on support equipment used for of Property, Plant and Equipment and to restore
drilling and estimated future decommissioning the site on which it is located. The full eventual
costs are capitalised and classified as Oil and estimated provision towards costs relating to
Gas Assets dismantling, abandoning and restoring well sites
and allied facilities are recognized in respective
Oil and Gas Assets are depleted using the “Unit
assets when the well is complete / facilities or
of Production Method”. The rate of depletion
Property, Plant and Equipment are installed.
is computed with reference to an area covered
by individual lease / license / asset /field / The amount recognized is the present value of
project / amortization base by considering the the estimated future expenditure determined
proved developed reserves and related capital using existing technology at current prices
costs incurred including estimated future and escalated using appropriate inflation rate
decommissioning / abandonment costs net till the expected date of decommissioning and
of salvage value. Acquisition cost of Oil and discounted up to the reporting date using the
Gas Assets is depleted by considering the appropriate risk free discount rate.

Consolidated Financial Statements

proved reserves. These reserves are estimated
An amount equivalent to the decommissioning
annually by the Reserve Estimates Committee
provision is recognized along with the cost
of the Company, which follows the International
of exploratory well or Property, Plant and
Reservoir Engineering Procedures.
Equipment. The decommissioning cost in
3.16. Side tracking respect of dry well is expensed as exploratory
well cost.
In the case of an exploratory well, cost of side-
tracking is treated in the same manner as the Any change in the present value of the estimated
cost incurred on a new exploratory well. The decommissioning provision other than the
cost of abandoned portion of side tracked periodic unwinding of discount is adjusted to
exploratory wells is expensed as ‘Exploration the decommissioning provision and the carrying
cost written off’. value of the related asset. In case reversal of
decommissioning provision exceeds the carrying
In the case of development wells, the entire
amount of the related asset including WDV of
cost of abandoned portion and side tracking is
the capitalised portion of decommissioning
capitalized.
provision in the carrying amount of the related
In case of side tracking of producing wells and asset, the excess amount is recognized in the
service wells which form part of the development Consolidated Statement of Profit and Loss. The
schemes are treated as development wells unwinding of discount on provision is charged
and the cost incurred on the side tracking is in the Consolidated Statement of Profit and Loss
capitalized. as finance cost.
In the case of side tracking of producing wells Provision for decommissioning cost in respect
and service wells which do not form part of the of assets under Joint Operations is considered 457
development schemes and the side-tracking as per participating interest of the Group on the
results in additional proved developed oil and basis of estimate approved by the respective
gas reserves or increases the future economic operating committee. Wherever the same
benefits therefrom beyond previously assessed are not approved by the respective operating
standard of performance, the cost incurred on committee abandonment cost estimates of the
side tracking is capitalised, whereas the cost of company are considered.
abandoned portion of the well is depleted in the
3.18. Inventories
normal way. Otherwise, the cost of side tracking
is expensed as ‘Work over Expenditure.’ (a) Raw material and Stock in Process – Refinery
& Petrochemicals
3.17. Decommissioning costs
Raw material and Stock in Process is valued at
Decommissioning cost includes cost of
lower of cost or net realizable value. Raw material
restoration. Provision for decommissioning
is valued based on First in First Out (FIFO)
costs are recognized when the Group has a legal
 THE UNSTOPPABLE
ENERGY SOLDIERS
basis. Cost of Stock in Process comprises of Customs duty on Raw materials/Finished
raw material cost and proportionate Conversion goods lying in bonded warehouse are
cost. Raw Materials are not written down below provided for at the applicable rates except
cost except in case where their prices have where liability to pay duty is transferred to
declined subsequently and it is estimated that consignee.
the cost of the finished goods will exceed their
Excise duty on finished stocks lying at
net realizable value.
manufacturing locations is provided for at
Raw materials for lubricants are valued at the assessable value applicable at each of
weighted average cost or at net realisable value, the locations based on applicable duty.
whichever is lower.
The net realizable value of finished goods
(b) Finished Goods and semi-finished :- and stock in trade are final selling prices
for sales to oil marketing companies and
(i) Exploration and Production Operation
depot prices applicable to the locations.
(E&P)
For the purpose of stock valuation, the
Finished goods (other than Sulphur and proportion of sales of oil marketing
carbon credits) including inventories in companies and consumer sales are
pipelines / tanks are valued at cost or determined on location wise and product
net realisable value whichever is lower. wise sales of subsequent period.
Cost of finished goods is determined on
(c) Store & Spares
absorption costing method. Sulphur and
carbon credits are valued at net realisable Inventory of stores and spare parts is valued at
value. The value of inventories includes weighted average cost or net realisable value,
excise duty, royalty (wherever applicable) whichever is lower. Wherever, weighted average
but excludes Cess. cost or net realisable value is not available,
the cost made available by the operator is
Crude oil in semi-finished condition at
considered for valuation of Stores and Spares.
Group Gathering Stations (GGS) is valued
Provisions are made for obsolete and non-
at cost on absorption costing method or
moving inventories.
net realisable value whichever is lower.
In case of Refinery & Petrochemicals segment,
Crude oil in unfinished condition in flow
surplus items, when transferred from completed
lines up to GGS / platform is not valued as
projects are valued at cost/ estimated value,
the same is not measurable. Natural Gas is
pending periodic assessment/ ascertainment
not valued as it is not stored.
of condition. Stores and Spares in-transit are
(ii) Refining & Petrochemicals valued at cost.
Cost of finished goods (other than Unserviceable and scrap items, when
lubricants) is determined based on raw determined, are valued at estimated net
material cost, conversion cost and excise realisable value.
458 duty.
3.19. Revenue recognition
Finished products (lubricants) are valued at
Revenue from contracts with customers is
weighted average cost or at net realisable
recognized at the point in time the Company
value, whichever is lower.
satisfies a performance obligation by transferring
Stock in trade are valued on weighted control of a promised product or service to
average cost basis. a customer at an amount that reflects the
consideration to which the Company expects to
Empty packages are valued at weighted
be entitled in exchange for the sale of products
average cost.
and service, net of discount, taxes or duties. The
Cost of semi-finished goods is determined transfer of control on sale of crude oil, natural
based on raw material cost and gas and value added products occurs at the
proportionate conversion cost. point of delivery, where usually the title is passed
 ANNUAL REPORT
2020-21
and the customer takes physical possession, associated income is recognized on a net basis.
depending upon the contractual conditions. Any
Revenue in respect of the following is recognized
retrospective revision in prices is accounted for
when collectability of the receivable is reasonably
in the year of such revision.
assured:
Revenue from service is recognized in the
(i) Contractual short lifted quantity of gas with
accounting period in which the services are
no obligation for make-up.
rendered at contractually agreed rates.
(ii) Interest on delayed realization from
Sale of crude oil and natural gas (net of
customers and cash calls from JV partners.
levies) produced from Intangible assets under
development – Exploratory Wells in Progress (iii) Liquidated damages from contractors/
/ Oil and Gas assets under development – suppliers.
Development Wells in Progress is deducted
As per the Production Sharing Contracts for
from expenditure on such wells.
extracting the Oil and Gas Reserves with
Any payment received in respect of contractual Government of India, out of the earnings from
short lifted gas quantity for which an obligation the exploitation of reserves after recovery of

Consolidated Financial Statements

exists to make-up such gas in subsequent cost, a part of the revenue is paid to Government
periods is recognized as Contract Liabilities of India which is called Profit Petroleum. It is
in the year of receipt. Revenue in respect of reduced from the revenue from Sale of Products
such contractual short lifted quantity of gas is as Government of India’s Share in Profit
recognized when such gas is actually supplied Petroleum.
or when the customer’s right to make up is
Dividend and interest income
expired, whichever is earlier.
Dividend income from investments is recognized
Revenues from the production of crude oil and
when the shareholder’s right to receive payment
natural gas properties, in which the Group has
is established and it became probable that the
an interest with other producers, are recognized
economic benefits associated with the dividend
based on actual quantity lifted over the period.
will flow to the Group, and the amount of the
Any difference as of the reporting date between
dividend can be measured reliably.
the entitlement quantity minus the quantities
lifted in respect of crude oil, if positive (i.e. Interest income from financial assets is
under lift quantity) the proportionate production recognized, when it is probable that the
expenditure is treated as prepaid expenses and, economic benefits will flow to the Group and
if negative (i.e. over lift quantity), a liability for the amount of income can be measured reliably.
the best estimate of the Group’s proportionate Interest income is accrued on a time basis by
share of production expenses as per the Joint reference to the principal outstanding and at
Operating Agreement (JOA) / Production the effective interest rate applicable on initial
Sharing Agreement (PSA) is created in respect recognition.
of the quantity of crude oil to be foregone in
3.20 Leases
future period towards settlement of the overlift 459
quantity of crude oil with corresponding charge Effective April 01, 2019, the Group adopted Ind
to the Statement of Profit and Loss. AS 116 “Leases” using the modified prospective
approach. The new standard defines a lease as
Revenue is allocated between loyalty programs
a contract that conveys the right to control the
and other components of the sale. The amount
use of an identified asset for a period of time
allocated to the loyalty program is deferred, and
in exchange for consideration. The Group has
is recognized as revenue when the Group has
exercised the option not to apply this standard
fulfilled its obligation to supply the products
to perpetual leases of intangible assets.
under the terms of the program or when it is
no longer probable that the points under the To assess whether a contract conveys the right
program will be redeemed. Where the Group to control the use of an identified asset, the
acts as an agent on behalf of a third party, the Group assesses whether:
 THE UNSTOPPABLE
ENERGY SOLDIERS
(i) the contract involves use of an identified assets. of the lease term, such assets are depreciated
over the useful life of the underlying asset. The
(ii) the Group obtains substantially all of the
Group applies Ind AS 36 to determine whether
economic benefits from the use of the asset
a ROU asset is impaired and accounts for
through out the period of the lease and
any identified impairment loss as described in
(iii) the Group has the right to direct the use of the the accounting policy above on “Impairment
asset. of tangible. intangible assets and right-of-use
assets”.
Group as a lessee
In the case of unincorporated joint operations,
At the date of commencement of the lease, the
the operator recognizes the entire lease liability,
Group recognizes a right-of-use asset (ROU
as, by signing the contract, it has primary
asset) and a corresponding lease liability for all
responsibility for the liability towards the third-
hiring contracts / arrangements in which it is a
party supplier. Therefore, if, based on the
lessee, except for lease with a term of twelve
contractual provisions and any other relevant
months or less (i.e. short term leases) and lease
facts and circumstances, the group has primary
of low value assets. For these short-term and
responsibility, it recognizes in the balance sheet:
low value leases, the Group recognizes the
(i) the entire lease liability and (ii) the entire right-
lease payments on straight-line basis over the
of-use asset, unless there is a sublease with
term of the lease.
the joint operators. On the other hand, if the
Certain lease arrangements includes the options lease contract is signed by all the partners of
to extend or terminate the lease before the end of the venture, the group recognises its share of
the lease term. ROU assets and lease liabilities the right-of-use asset and lease liability based
includes these options when it is reasonably on its working interest. If the group does not
certain that they will be exercised. have primary responsibility for the lease liability,
it does not recognise any right-of-use asset or
The lease liability is initially measured at present
lease liability related to the lease contract.
value of the future lease payments over the
reasonably certain lease term. The lease The interest cost on lease Liability (computed
payments are discounted using the interest using effective interest method). is expensed
rate implicit in the lease. if it is not readily in the Consolidated statement of profit and
determinable, using the incremental borrowing loss unless eligible for capitalization as per
rate. For leases with similar characteristics, the accounting policy below on “Borrowing costs”.
Group, on a lease by lease basis. applies either
The Group accounts for each lease component
the incremental borrowing rate specific to the
within the contract as a lease separately from
lease or the incremental borrowing rate for the
non-lease components of the contract in
portfolio as a whole.
accordance with Ind AS 116 and allocates the
The right-of-use assets are initially recognized at consideration in the contract to each lease
cost, which comprises the amount of the initial component on the basis of the relative stand-
measurement of the lease liability adjusted alone price of the lease component and the
460 for any lease payments made at or before the aggregate stand-alone price of the non-lease
inception date of the lease along with any initial components except in case of subsidiary HPCL
direct costs, restoration obligations and lease which has elected not to separate non-lease
incentives received components in a contract and account as one
unified lease contract covering all underlying
Subsequently, the right-of-use assets is
assets by using the practical expedient
measured at cost less any accumulated
prescribed in the Standard, and the same has
depreciation and accumulated impairment
immaterial impact on consolidated financial
losses, if any. The right-of-use asset is
statements.
depreciated using the straight-line method from
the commencement date over the shorter of Lease liability and ROU asset have been
lease term or useful life of right-of-use assets, separately presented in the Consolidated
however, in case the ownership of such right- Balance Sheet and lease payments have
of-use asset transfers to the lessee at the end been classified as financing cash flows in the
Consolidated Statement of Cash Flows.
 ANNUAL REPORT
2020-21
Group as Lessor: Exchange difference arising in respect of
long term foreign currency monetary items is
A lease is classified as a finance lease if it
recognized in the statement of profit and loss
transfers substantially all the risks and rewards
except for the exchange difference related to
incidental to ownership of an underlying asset.
long term foreign currency monetary items
In all other cases, it is treated as operating
recognized as at March 31, 2016, in so far as,
lease.
these related to the acquisition of depreciable
3.21. Foreign Exchange Transactions assets, are adjusted against the cost of such
assets and depreciate the said adjustment,
Items included in the financial statements of
over the balance life of asset and in other cases
each of the Group’s entities are measured
amortised over the balance period of the long
using the currency of the primary economic
term foreign currency monetary assets or
environment in which the entity operates
liabilities.
(the “functional currency”). The consolidated
financial statements are presented in Indian On the disposal of a foreign operation (i.e.
Rupees (`), which is the Company’s functional a disposal of the Group’s entire interest in a
currency and the Group’s presentation currency. foreign operation, a disposal involving loss of

Consolidated Financial Statements

control over a subsidiary that includes a foreign
Transactions in currencies other than the
operation, or a partial disposal of an interest in a
respective entities’ functional currency
joint arrangement or an associate that includes
(foreign currencies) are recognized at the
a foreign operation of which the retained interest
rates of exchange prevailing at the dates of
becomes a financial asset), all of the exchange
the transactions. At the end of each reporting
differences accumulated in equity in respect of
period, monetary items denominated in
that operation attributable to the owners of the
foreign currencies are retranslated using mean
Company are reclassified to the consolidated
exchange rate prevailing on the last day of the
statement of profit and loss.
reporting period. Non-monetary items carried
at fair value that are denominated in foreign In addition, in relation to a partial disposal of
currencies are retranslated at the rates prevailing a subsidiary that includes a foreign operation
at the date when the fair value was determined. that does not result in the Group losing control
Non-monetary items that are measured in over the subsidiary, the proportionate share
terms of historical cost in a foreign currency are of accumulated exchange differences are re-
translated using the exchange rates at the date attributed to non-controlling interests and are
of transaction. not recognized in the consolidated statement
of profit and loss. For all other partial disposals
Exchange differences on monetary items are
(i.e. partial disposals of associates or joint
recognized in the consolidated Statement of
arrangements that do not result in the Group
Profit and Loss in the period in which they arise
losing significant influence or joint control),
except for exchange differences on foreign
the proportionate share of the accumulated
currency borrowings relating to assets under
exchange differences is reclassified to the
construction for future productive use, which are
included in the cost of those assets when they
consolidated statement of profit and loss. 461
are regarded as an adjustment to interest costs Goodwill and fair value adjustments to identifiable
on those foreign currency borrowings. assets acquired and liabilities assumed through
acquisition of a foreign operation are treated
Exchange differences on monetary items are
as assets and liabilities of foreign operation
recognized in the consolidated statement of
and translated at rate of exchange prevailing
profit and loss in the period in which they arise
at the end of each reporting period. Exchange
except for exchange differences on monetary
differences arising are recognized in other
item that forms part of a Group’s net investment
comprehensive income.
in a foreign operation are recognized initially in
other comprehensive income and reclassified Entities with functional currency other than
from equity to the consolidated statement of presentation currency are translated to the
profit and loss on repayment of the monetary presentation currency in Indian Rupees (`). The
items. Group has applied the following principles for
 THE UNSTOPPABLE
ENERGY SOLDIERS
translating its results and financial position from carried out at the end of each annual reporting
functional currency to presentation currency period. These are accounted either as current
(`):- employee cost or included in cost of assets as
permitted.
• Assets and liabilities (excluding equity share
capital and other equity) for each balance sheet Net interest on the net defined liability is
presented (i.e. including comparatives) has calculated by applying the discount rate at
been translated at the closing rate at the date of the beginning of the period to the net defined
that balance sheet; benefit liability or asset and is recognized in
the Statement of Profit and Loss except those
• Equity share capital including equity component
included in cost of assets as permitted.
of compound financial instruments have been
translated at exchange rates at the dates of Remeasurement of defined retirement benefit
transaction. Capital reserve has been translated plans except for leave encashment towards
at exchange rate at the dates of transaction. un-availed leave and compensated absences,
Other reserves have been translated using comprising actuarial gains and losses, the effect
average exchange rates of the period to which of the changes to the asset ceiling (if applicable)
it relates; and the return on plan assets (excluding net
interest as defined above), are recognized in
• Income and expenses for each consolidated
other comprehensive income except those
statement of profit and loss presented have
included in cost of assets as permitted in
been translated at exchange rates at the dates
the period in which they occur and are not
of transaction except for certain items average
subsequently reclassified to profit or loss.
rate for the period is used;
The Group contributes all ascertained liabilities
3.22. Employee Benefits
with respect to gratuity to the respective Gratuity
Employee benefits include salaries, wages, Fund Trust. All ascertained liabilities for un-
contributory provident fund, gratuity, leave availed leave are funded with Life Insurance
encashment towards un-availed leave, Corporation of India (LIC) except in case of some
compensated absences, post-retirement subsidiaries. Other defined benefit schemes are
medical benefits and other terminal benefits. unfunded.
All short term employee benefits are recognized The retirement benefit obligation recognized
at their undiscounted amount in the accounting in the Consolidated Financial Statements
period in which they are incurred. represents the actual deficit or surplus in the
Group’s defined benefit plans. Any surplus
Defined contribution plans
resulting from this calculation is limited to the
Employee Benefit under defined contribution present value of any economic benefits available
plans comprising contributory provident fund, in the form of reductions in future contributions
Post Retirement benefit scheme, Employee to the plans.
Pension Scheme - 1995, composite social
Other long term employee benefits
462 security scheme etc. is recognized based on
the undiscounted amount of obligations of the Other long term employee benefit comprises of
Group to contribute to the plan. The same is leave encashment towards un-availed leave and
paid to a fund administered through a separate compensated absences, these are recognized
trust. based on the present value of defined obligation
which is computed using the projected unit
Defined benefit plans
credit method, with actuarial valuations being
Defined employee benefit plans comprising of carried out at the end of each annual reporting
gratuity, post-retirement medical benefits and period. These are accounted for either as current
other terminal benefits, are recognized based on employee cost or included in cost of assets as
the present value of defined benefit obligation permitted.
which is computed using the projected unit
Re-measurements of leave encashment towards
credit method, with actuarial valuations being
un-availed leave and compensated absences
 ANNUAL REPORT
2020-21
are recognized in the Statement of profit and for all taxable temporary differences. Deferred
loss except those included in cost of assets as tax assets are generally recognized for all
permitted in the period in which they occur. deductible temporary differences to the extent
that it is probable that taxable profits will be
3.23. Voluntary Retirement Scheme
available against which those deductible
Expenditure on Voluntary Retirement Scheme temporary differences can be utilised. Such
(VRS) is charged to the Consolidated Statement deferred tax assets and liabilities are not
of Profit and Loss when incurred. recognized if the temporary difference arises
from the initial recognition (other than in a
3.24. General Administrative Expenses
business combination) of assets and liabilities
General administrative expenses which are in a transaction that affects neither the taxable
directly attributable are allocated to activities profit nor the accounting profit. In addition,
and the balance is charged to Consolidated deferred tax liabilities are not recognized if
Statement of Profit and Loss. the temporary difference arises from the initial
recognition of goodwill.
3.25. Insurance claims
The carrying amount of deferred tax assets is
Insurance claims are accounted for on the basis

Consolidated Financial Statements

reviewed at the end of each reporting period
of claims admitted/expected to be admitted to
and reduced to the extent that it is no longer
the extent that the amount recoverable can be
probable that sufficient taxable profits will be
measured reliably and it is virtually certain to
available to allow all or part of the deferred tax
expect ultimate collection.
asset to be utilized.
3.26. Research and Development Expenditure
Deferred tax liabilities and assets are measured
Expenditure of capital nature are capitalised and at the tax rates that are expected to apply in the
expenses of revenue nature are charged to the period in which the liability is settled or the asset
Consolidated Statement of Profit and Loss, as realized, based on tax rates (and tax laws) that
and when incurred. have been enacted or substantively enacted
3.27. Income Taxes by the end of the reporting period. Deferred tax
assets and liabilities are offset if there is a legally
Income tax expense represents the sum of the enforceable right to offset current tax liabilities
current tax expense and deferred tax. and assets, and they relate to income taxes
(i) Current tax levied by the same tax authority.

The tax currently payable is based on taxable The measurement of deferred tax liabilities and
profit for the year. Taxable profit differs from assets reflects the tax consequences that would
‘profit before tax’ as reported in the Consolidated follow from the manner in which the Group
Statement of Profit and Loss because of items of expects, at the end of the reporting period,
income or expense that are taxable or deductible to recover or settle the carrying amount of its
in other years and items that are never taxable assets and liabilities.
or deductible. The Group’s current tax is Deferred tax assets and liabilities are presented 463
calculated using tax rates and laws that have separately in Consolidated Balance sheet
been enacted or substantively enacted by the except where there is a right of set-off within
end of the reporting period and any adjustment fiscal jurisdictions and an intention to settle such
to tax payable in repect of previous year. balances on a net basis.
(ii) Deferred tax Deferred tax liabilities are recognized for
Deferred tax is recognized using balance sheet taxable temporary differences associated
method, providing for temporary differences with investment in subsidiaries and associate
between the carrying amounts of assets and interests in joint ventures, except where
and liabilities in the Consolidated Financial the Group is able to control the reversal of
Statements and the corresponding tax bases the temporary difference and it is probable
used in the computation of taxable profit. that the temporary difference will not reverse
Deferred tax liabilities are generally recognized in the foreseeable future. Deferred tax assets
 THE UNSTOPPABLE
ENERGY SOLDIERS
arising from deductible temporary differences loss previously recognised as an adjustment is
associated with such interests are recognized recognised as an adjustment to interest.
only to the extent that it is probable that there
3.29. Rig Days Costs
will be sufficient taxable profits against which to
utilize the benefits of the temporary differences Rig movement costs are booked to the next
and they are expected to reverse in the location drilled/planned for drilling. Abnormal
foreseeable future. Rig days’ costs are considered as un-allocable
and charged to the Consolidated Statement of
Deferred tax assets include Minimum Alternative
Profit and Loss.
Tax (MAT) paid in accordance with the tax laws
in India, which is likely to give future economic 3.30. Provisions, Contingent Liabilities and
benefits in the form of availability of set off Contingent Assets
against future income tax liability. Accordingly,
Provisions are recognized when the Group has
MAT is recognized as deferred tax asset in the
a present obligation (legal or constructive) as
Consolidated Balance Sheet when the asset can
a result of a past event, it is probable that the
be measured reliably and it is probable that the
Group will be required to settle the obligation,
future economic benefit associated with asset
and a reliable estimate can be made of the
will be realized.
amount of the obligation.
(iii) Current and deferred tax for the year
The amount recognized as a provision is the
Current and deferred tax expense is recognized best estimate of the consideration required to
in the Consolidated Statement of Profit and settle the present obligation at the end of the
Loss, except when they relate to items that are reporting period, taking into account the risks
recognized in other comprehensive income and uncertainties surrounding the obligation.
or directly in equity, in which case, the current When a provision is measured using the cash
and deferred tax are also recognized in other flows estimated to settle the present obligation,
comprehensive income or directly in equity its carrying amount is the present value of those
respectively. cash flows (when the effect of the time value of
money is material).
3.28. Borrowing Costs
Contingent assets are disclosed in the
Borrowing costs including finance cost on lease
Consolidated Financial Statements by way of
liability specifically identified to the acquisition or
notes to accounts when an inflow of economic
construction of qualifying assets or development
benefits is probable.
wells or exploratory wells is capitalized as part
of such assets. A qualifying asset is one that Contingent liabilities are disclosed in the
necessarily takes substantial period of time to Consolidated Financial Statements by way
get ready for intended use. All other borrowing of notes to accounts, unless possibility of an
costs are charged to the Consolidated Statement outflow of resources embodying economic
of Profit and Loss. benefit is remote. Contingent liabilities are
disclosed on the basis of judgment of the
464 Borrowing cost also includes exchange
management/independent experts. These are
differences arising from foreign currency
reviewed at each balance sheet date and are
borrowings to the extent that they are regarded
adjusted to reflect the current management
as an adjustment to interest costs i.e. equivalent
estimate.
to the extent to which the exchange loss does
not exceed the difference between the cost 3.31. Financial instruments
of borrowing in functional currency (`) when
Financial assets and financial liabilities are
compared to the cost of borrowing in a foreign
recognized when Group becomes a party to the
currency.
contractual provisions of the instruments.
When there is an unrealised exchange loss
Financial assets and financial liabilities are
which is treated as an adjustment to interest and
initially measured at fair value. Transaction costs
subsequently there is a realised or unrealised
that are directly attributable to the acquisition or
gain in respect of the settlement or translation of
issue of financial assets and financial liabilities
the same borrowing, the gain to the extent of the
 ANNUAL REPORT
2020-21
(other than financial assets and financial liabilities to retained earnings. No gain or loss is
at fair value through profit or loss) are added to recognized in profit or loss upon conversion or
or deducted from the fair value of the financial expiration of the conversion option.
assets or financial liabilities, as appropriate,
Transaction costs that relate to the issue of the
on initial recognition. Transaction costs directly
convertible notes are allocated to the liability and
attributable to the acquisition of financial assets
equity components in proportion to the allocation
or financial liabilities at fair value through profit
of the gross proceeds. Transaction costs relating
or loss are recognized immediately in the
to the equity component are recognized directly
Consolidated Statement of Profit and Loss.
in equity. Transaction costs relating to the liability
3.32. Equity instruments component are included in the carrying amount
of the liability component and are amortised
Equity instruments issued by the Group are
over the lives of the convertible notes using the
recorded at the proceeds received, net of direct
effective interest method.
issue costs.
3.33. Financial assets
(i) Classification as debt or equity instruments
(i) Cash and cash equivalents
Debt and equity instruments issued by the

Consolidated Financial Statements

Group are classified as either financial liabilities The Group considers all highly liquid financial
or as equity in accordance with the substance of instruments, which are readily convertible into
the contractual arrangements and the definitions known amounts of cash that are subject to an
of a financial liability and an equity instrument. insignificant risk of change in value and having
original maturities of three months or less from
(ii) Compound financial instruments
the date of purchase, to be cash equivalents.
The component parts of compound financial Cash and cash equivalents consist of balances
instruments issued by the Group are classified with banks which are unrestricted for withdrawal
separately as financial liabilities and equity and usage.
in accordance with the substance of the
(ii) Financial assets at amortised cost
contractual arrangements. A conversion option
that will be settled by the exchange of a fixed Financial assets are subsequently measured
amount of cash or another financial asset for at amortised cost using the effective interest
a fixed number of the Company’s own equity method if these financial assets are held within
instruments is an equity instrument. a business whose objective is to hold these
assets in order to collect contractual cash flows
At the date of issue, the fair value of the liability
and the contractual terms of the financial asset
component is estimated using the prevailing
give rise on specified dates to cash flows that
market interest rate for similar non-convertible
are solely payments of principal and interest on
instruments. This amount is recognized as a
the principal amount outstanding.
liability on an amortised cost basis using the
effective interest method until extinguished (iii) Financial assets at fair value through other
upon conversion or at the instrument’s maturity comprehensive income
date. The conversion option classified as equity
465
Financial assets are measured at fair value
is determined by deducting the amount of the
through other comprehensive income if these
liability component from the fair value of the
financial assets are held within a business
compound financial instrument as a whole.
whose objective is achieved by both collecting
This is recognized and included in equity, net
contractual cash flows and selling financial
of income tax effects, and is not subsequently
assets and the contractual terms of the financial
remeasured. In addition, the conversion option
asset give rise on specified dates to cash flows
classified as equity will remain in equity until
that are solely payments of principal and interest
the conversion option is exercised, in which
on the principal amount outstanding.
case, the balance recognized in equity will be
transferred to other component of equity. When The Group has made an irrevocable election
the conversion option remains unexercised at to present in other comprehensive income
the maturity date of the convertible note, the subsequent changes in the fair value of equity
balance recognized in equity will be transferred investments not held for trading.
 THE UNSTOPPABLE
ENERGY SOLDIERS
(iv) Financial assets at fair value through profit or When an existing financial liability is exchanged
loss with another financial liability, from the existing
lender of the debt instrument on substantially
Financial assets are measured at fair value
different terms, or the terms of an existing
through profit or loss unless it is measured at financial liability are substantially modified, such
amortised cost or at fair value through other an exchange or modification is treated as the
comprehensive income on initial recognition. derecognition of the original financial liability
(v) Impairment of financial assets and the recognition of a new financial liability.
The difference in the respective carrying amount
The Group assesses at each Consolidated is recognised in the Consolidated Statement of
Balance Sheet date whether a financial asset Profit and Loss.
or a group of financial assets is impaired.
Ind AS 109 ‘Financial Instruments’ requires 3.35. Derivative financial instruments
expected credit losses to be measured through The Group enters into a variety of derivative
a loss allowance. The Group recognises lifetime financial instruments to manage its exposure
expected losses for trade receivables that do to interest rate and foreign exchange rate risks,
not constitute a financing transaction. For all including foreign exchange forward contracts
other financial assets, expected credit losses and interest rate swaps.
are measured at an amount equal to 12 month
Derivatives are initially recognized at fair value at
expected credit losses or at an amount equal to the date the derivative contracts are entered into
lifetime expected losses, if the credit risk on the and are subsequently remeasured to their fair
financial asset has increased significantly since value at the end of each reporting period. The
initial recognition. resulting gain or loss is recognized in profit or loss
(vi) Derecognition of financial assets immediately unless the derivative is designated
and effective as a hedging instrument, in which
The Group derecognises a financial asset when event the timing of the recognition in profit
the contractual rights to the cash flows from the or loss depends on the nature of the hedging
asset expire, or when it transfers the financial relationship and the nature of the hedged item.
asset and substantially all the risks and rewards
of ownership of the asset to another party. Derivatives embedded in non-derivative host
contracts that are not financial assets within
On derecognition of a financial asset in the scope of Ind AS 109 ‘Financial Instruments’
its entirety (except for equity instruments are treated as separate derivatives when their
designated as FVTOCI), the difference between risks and characteristics are not closely related
the asset’s carrying amount and the sum of to those of the host contracts and the host
the consideration received and receivable is contracts are not measured at fair value through
recognized in the Consolidated Statement of profit & Loss (FVTPL).
Profit and Loss. Derivatives Contracts designated as hedging
3.34. Financial liabilities instruments:
466
(i) Financial liabilities Wherever Hedge Accounting is undertaken,
at the inception of a hedge relationship, the
Financial liabilities are measured at amortised Group formally designates and documents
cost using the effective interest method. a) the hedge relationship to which it wishes
(ii) Derecognition of financial liabilities to apply hedge accounting and b) the risk
management objective and strategy. In such
The Group derecognises financial liabilities cases, the derivative financial instruments are
when, and only when, the Group’s obligations recognized at fair value with due assessment
are discharged, cancelled or have expired. to effectiveness of the hedge instrument. By
The difference between the carrying amount following Cash Flow Hedges, the effective
of the financial liability derecognized and the portion of changes in the fair value is recognized
consideration paid and payable is recognized in in Other Comprehensive Income (OCI) and
the Consolidated Statement of Profit and Loss. accumulated under Cash Flow Hedge Reserve
 ANNUAL REPORT
2020-21
within Other Equity whereas the ineffective In case of a Subsidary Petronet MHB Ltd,
portion, if any, is recognized immediately in the building component of investment property
Statement of Profit and Loss and presented is depreciated over 30 years from the date of
under Other Income or Other Expenses, as the original construction, based on the useful life
case may be. The effective portion, previously prescribed in Schedule II to the Companies
recognized in OCI and accumulated as Cash Act, 2013 using the straight-line method. The
Flow Hedge Reserve is reclassified to the management believes that these estimated
Statement of Profit and Loss in the subsequent useful lives are realistic and reflect fair
period, during which, the hedged expected approximation of the period over which the
future cash flows affect profit or loss and further assets are likely to be used.
guided to the same line item to which the
underlying is accounted. Further, in case of An investment property is derecognized upon
previously recognized forecasted transaction, disposal or when the investment property
upon the knowledge of its non-occurrence, the is permanently withdrawn from use and no
effective portion of cumulative gain or loss is future economic benefits are expected from
forthwith recognized by transferring from Cash the disposal. Any gain or loss arising on de-
Flow Hedge Reserve to the Statement of Profit recognition of the property (calculated as the

Consolidated Financial Statements

and Loss. If the amount accumulated in Cash difference between the net disposal proceeds
Flow Hedge Reserve is a loss and Corporation and the carrying amount of the asset) is included
expects that all or a portion of that loss will not in profit or loss in the period in which the property
be recovered in one or more future period, the is derecognized.
Corporation immediately reclassifies the amount
that is not expected to be recovered into profit or 3.38. Earnings per share
loss as a reclassification adjustment. The hedge Basic earnings per share are computed by
accounting is discontinued when the hedging dividing the net profit after tax by the weighted
instrument expires or is sold, terminated or no average number of equity shares outstanding
longer qualifies for hedge accounting. during the period. Diluted earnings per share
Derivatives Contracts not designated as is computed by dividing the profit after tax by
hedging instruments the weighted average number of equity shares
considered for deriving basic earnings per
The derivative financial instruments are
share and also the weighted average number of
accounted at fair value through Profit or Loss
equity shares that could have been issued upon
and presented under Other Income or Other
conversion of all dilutive potential equity shares.
Expenses, as the case may be.
3.36. Offsetting of financial instruments 3.39. Statement of Cash Flows

Financial assets and financial liabilities are Cash flows are reported using the indirect
offset and the net amount is reported in the method, whereby profit for the year is adjusted
Balance Sheet if there is a currently enforceable for the effects of transactions of a non-cash
legal right to offset the recognized amounts and nature, any deferrals or accruals of past or
there is an intention to settle on a net basis, future operating cash receipts or payments 467
or to realize the assets and settle the liabilities and item of income or expenses associated
simultaneously. with investing or financing cash flows. The cash
flows are segregated into operating, investing
3.37. Investment property and financing activities.
Investment properties are properties held to 3.40.Segment Reporting
earn rentals and/or for capital appreciation.
Investment properties are measured initially at Operating segments are identified and reported
cost, including transaction costs. Subsequent taking into account the different risks and returns,
to initial recognition, investment properties the organization structure and the internal
are measured in accordance with Ind AS 16 reporting systems. The geographical segments
requirements for cost model. Free hold Land are based on assets as primary segments and
and Properties under construction are not business segments as secondary segments.
depreciated.
 THE UNSTOPPABLE
ENERGY SOLDIERS
4. The consolidated financial statements represents consolidation of accounts of “Oil and Natural Gas
Corporation Limited”, its subsidiaries, Joint venture entities and Associates as detailed below:

Proportion of ownership interest as Status of

Country of at
S. No. Name of the Company Audit as on
Incorporation
March 31, 2021 March 31, 2020 31.03.2021
A Subsidiaries
1 ONGC Videsh Limited (OVL) India 100% 100% Audited
Class A : 100% Class A : 100%
1.1 ONGC Nile Ganga B.V. The Netherlands Class B : 100% Class B : 100% Audited
Class C : 55% Class C : 55%
1.1 (i) ONGC Campos Ltda. Brazil 100% 100% Audited
1.1 (ii) ONGC Nile Ganga (San Cristobal) B.V. The Netherlands 100% 100% Audited
1.2 ONGC Narmada Limited Nigeria 100% 100% Unaudited
1.3 ONGC Amazon Alaknanda Limited Bermuda 100% 100% Audited
1.4 Imperial Energy Limited Cyprus 100% 100% Audited
1.4 (i) Imperial Energy Tomsk Limited Cyprus 100% 100% Audited
1.4 (ii) Imperial Energy (Cyprus) Limited Cyprus 100% 100% Audited
1.4 (iii) Imperial Energy Nord Limited Cyprus 100% 100% Audited
1.4 (iv) Biancus Holdings Limited Cyprus 100% 100% Audited
1.4 (v) Redcliffe Holdings Limited Cyprus 100% 100% Audited
Imperial Frac Services (Cyprus)
1.4 (vi) Cyprus 100% 100% Audited
Limited
1.4 (vii) San Agio Investments Limited Cyprus 100% 100% Audited
1.4 (viii) LLC Sibinterneft Russia 55.90% 55.90% Audited
1.4 (ix) LLC Allianceneftegaz Russia 100% 100% Audited
1.4 (x) LLC Nord Imperial Russia 100% 100% Audited
1.4 (xi) LLC Rus Imperial Group Russia 100% 100% Audited
1.4 (xii) LLC Imperial Frac Services Russia 100% 100% Audited
1.5 Carabobo One AB Sweden 100% 100% Audited
1.5 (i) Petro Carabobo Ganga B.V. The Netherlands 100% 100% Audited
1.6 ONGC (BTC) Limited Cayman Islands 100% 100% Unaudited
Beas Rovuma Energy Mozambique
1.7 Mauritius 60% 60% Audited
Ltd.
468 ONGC Videsh Rovuma Ltd. (OVRL)
1.8 Mauritius NA 100% Audited
(Note no.4(a))
1.9 ONGC Videsh Atlantic Inc. (OVAI) Texas 100% 100% Audited
1.10 ONGC Videsh Singapore Pte Ltd. Singapore 100% 100% Audited
1.10 (i) ONGC Videsh Vankorneft Pte Ltd. Singapore 100% 100% Audited
Indus East Mediterranean
1.11 Israel 100% 100% Unaudited
Exploration Ltd.
ONGC Videsh Rovuma Ltd. (OVRL
1.12 India 100% 100% Audited
India)
Mangalore Refinery and
2 Petrochemicals Ltd. (MRPL) India 80.72% 80.29% Audited
(Note no.4(b))
 ANNUAL REPORT
2020-21

Proportion of ownership interest as Status of

Country of at
S. No. Name of the Company Audit as on
Incorporation
March 31, 2021 March 31, 2020 31.03.2021
ONGC Mangalore Petrochemicals
2.1 India 99.99996% 51% Audited
Ltd. (OMPL) (Note No. 4(e))
Hindustan Petroleum Corporation
3 India 53.64% 51.11% Audited
Ltd (HPCL) (Note No. 4(c))
Prize Petroleum Company Ltd (Note
3.1 India 100% 100% Audited
No. 4(g))
Prize Petroleum International PTE
3.1.1 India 100% 100% Audited
Ltd.
3.2 HPCL Bio Fuels Ltd. India 100% 100% Audited
HPCL Middle East FZCO (Note No.
3.3 Dubai 100% 100% Audited
4(h))
HPCL Shapoorji Energy Pvt Ltd.

Consolidated Financial Statements

3.4 India 100% 50% Audited
(HSEL) (Note No. 4(l))
Petronet MHB Ltd (PMHBL)(Note
4 India 76.81% 75.55% Audited
No. 4(d))
B Joint Ventures
Mangalore SEZ Ltd (MSEZ)(Note No.
1 India 26.77% 26.86% Audited
4(f))
2 ONGC Petro additions Ltd. (OPaL) India 49.36% 49.36% Audited
ONGC Tripura Power Company Ltd.
3 India 50.00% 50.00% Audited
(OTPC)
4 ONGC Teri Biotech Ltd. (OTBL) India 49.98% 49.98% Audited
5 Dahej SEZ Limited (DSEZ) India 50.00% 50.00% Unaudited
6 Indradhanush Gas Grid Ltd (IGGL) India 20.00% 20.00% Audited
ONGC Mittal Energy Limited (OMEL)
7 Cyprus 49.98% 49.98% Unaudited
(through OVL)
SUDD Petroleum Operating
8 Mauritius 24.13% 24.13% Audited
Company(through OVL)
Mansarovar Energy Colombia Ltd.
9 Colombia 50.00% 50.00% Audited
(through OVL)
Himalaya Energy Syria BV(through
10 Netherlands 50.00% 50.00% Audited
OVL)
Shell MRPL Aviation Fuels & 469
11 Services Limited (SMASL) (through India 50.00% 50.00% Audited
MRPL)
North East Transmission Company
12 India 13.00% 13.00% Audited
Ltd. (NETC) (through OTPC)
Mangalore STP Limited (through
13 India 18.74% 18.80% Audited
MSEZ) (Note No. 4(f))
MSEZ Power Ltd (through MSEZ)
14 India 26.77% 26.86% Audited
(Note No. 4(f))
Adani Petronet Dahej Port Pvt Ltd
15 India 3.25% 3.25% Audited
(APPPL) (through PLL)
India LNG Transport Co Pvt.
16 India 3.25% 3.25% Audited
Ltd(through PLL)
 THE UNSTOPPABLE
ENERGY SOLDIERS

Proportion of ownership interest as Status of

Country of at
S. No. Name of the Company Audit as on
Incorporation
March 31, 2021 March 31, 2020 31.03.2021
HPCL Rajasthan refinery Ltd.
17 India 74.00% 74.00% Audited
(through HPCL)
HPCL Mittal Energy Ltd. (through
18 India 48.99% 48.99% Audited
HPCL) (Note No. 4(g))
Hindustan Colas Pvt. Ltd. (through
19 India 50.00% 50.00% Audited
HPCL) (Note No. 4(i))
South Asia LPG Co. Private Ltd.
20 India 50.00% 50.00% Audited
(through HPCL)
Bhagyanagar Gas Ltd. (through
21 India 48.73% 24.99% Audited
HPCL) (Note No. 4(k))
Godavari Gas Pvt Ltd. (through
22 India 26.00% 26.00% Unaudited
HPCL)
Petronet India Ltd. (through HPCL)
23 India 16.00% 16.00% Audited
(Note No. 4(j))
24 Aavantika Gas Ltd. (through HPCL) India 49.99% 49.99% Audited
Ratnagiri Refinery & Petrochemical
25 India 25.00% 25.00% Audited
Ltd. (through HPCL)
Mumbai Aviation Fuel Farm Facility
26 India 25.00% 25.00% Audited
Pvt Ltd. (through HPCL)
27 HPOIL Gas Pvt Ltd (through HPCL) India 50.00% 50.00% Audited
28 IHB Pvt Ltd (through HPCL) India 25.00% 25.00% Audited
C Associates
1 Pawan Hans Ltd. (PHL) India 49.00% 49.00% Unaudited
2 Petronet LNG Limited (PLL) India 12.50% 12.50% Audited
3 Rohini Heliport Limited India 49.00% 49.00% Unaudited
4 JSC Vankorneft (through OVL) Russia 26.00% 26.00% Audited
5 Tamba BV (through OVL) Netherland 27.00% 27.00% Audited
South East Asia Gas Pipeline
6 Hong Kong 8.35% 8.35% Audited
Company Limited (through OVL)
Petrolera Indovenezolana SA
7 Venezuela 40.00% 40.00% Audited
(through OVL)
470 8 Petro Carabobo SA (through OVL) Venezuela 11.00% 11.00% Audited
Carabobo Ingenieria Y Construcciones,
9 Venezuela 37.93% 37.93% Audited
S.A (through OVL)
10 Falcon Oil & Gas B.V. (through OVL) Netherlands 40.00% 40.00% Audited
Moz LNG I Holding Company Ltd
11 Abu Dhabi 16.00% 16.00% Audited
(through OVL)
GSPL India Gasnet Ltd.(through
12 India 11.00% 11.00% Unaudited
HPCL)
GSPL India Transco Ltd. (through
13 India 11.00% 11.00% Unaudited
HPCL)
 ANNUAL REPORT
2020-21
a) ONGC Videsh Rovuma Ltd. (OVRL) incorporated g) Prize Petroleum Company Limited has wholly
in Mauritius wound up during the year. owned subsidiary namely Prize Petroleum
International PTE Limited. HPCL – Mittal Energy
b) Represents effective Group ownership interest
Limited has a 100% subsidiary namely HPCL –
in MRPL along with subsidiary HPCL.(refer
Mittal Pipelines Limited.
Note No.(c) below for change in effective group
ownership interest during the year) h) HPCL Middle East FZCO, a 100% Subsidiary
of HPCL was incorporated as a Free Zone
c) During the year Subsidiary Hindustan Petroleum
Company under Dubai Airport Free Zone for
Corporation Limited (HPCL) has executed buy-
Trading in Lubricants & Grease, Petrochemicals
back program through Open Market Operations
and Refined Oil Products in Middle East and
and has bought back 71,801,491 nos. shares
Africa.
from persons other than promoters, representing
4.71% of Share Capital (prior to commencement i) Hindustan Colas Private Limited (HINCOL)
of buy-back), as on the reporting date, March 31, having one joint venture namely Dust-A-Side
2021. Out of this 67,977,038 nos. shares have Hincol Limited (HINCOL’s holding as on March
been extinguished as on the reporting date and 31, 2021:50%).

Consolidated Financial Statements

rest on April 20, 2021. Considering the effect
j) Petronet India Ltd. in which HPCL holds 16%
of subsequent extinguishment as an adjusting
stake has commenced voluntary winding up on
event under Ind AS, Company’s shareholding in
30th August 2018.
the subsidiary HPCL has increased from 51.11%
as on March 31, 2020 to 53.64% as on March 31, k) As of 31st March 2014, Bhagyanagar Gas Ltd.
2021. (BGL) had a paid up equity capital of `0.05
million, in which HPCL and GAIL were holding
d) Represents effective Group ownership interest
24.99% each and the balance 50.02% of shares
in Petronet MHB Limited along with subsidiary
were held by Kakinada Seaports Ltd (KSPL)
HPCL.(refer Note No.(c) above for change in
on warehousing basis. In addition, HPCL and
effective group ownership interest during the
GAIL had paid `224.90 million each as Advance
year)
against Equity / Share application money (totaling
e) During the current year on January 01, 2021, the to `449.80 million). On 20th August 2014, BGL
Company sold its entire holding of 124,66,53,746 allotted 2,24,87,500 shares on preferential basis
nos. equity shares (equivalent to 49% holding) in to each of HPCL and GAIL towards the money
its step subsidiary company ONGC Mangalore paid earlier. Accordingly, the Corporation’s
Petrochemicals Limited, having face value shareholding in BGL had increased to 48.73%.
`10 per share at a value of `9.76/- per share KSPL challenged this in the Company Law
to Mangalore Refinery & Petrochemicals Board (CLB), Chennai Bench which dismissed
Limited (MRPL), a subsidiary of the Company. it on 14th September 2014. Against this, KSPL
Accordingly, the holding of MRPL in OMPL has moved the High Court, Telangana, which did
increased from 51% to 99.99996%. (previous not stay the dismissal order of CLB. Pending 471
year effective Group holding interest in OMPL adjudication of the appeal by KSPL before the
was 89.95%). High Court, for the purpose of preparation of
Consolidated Financial Statements (CFS), the
f) As a result of sale of 49% equity of OMPL to
shareholding was considered at 24.99% till 31st
MRPL as stated above, the effective group
March 2020. At its AGM held on 29th September
holding in Joint Venture Mangalore SEZ has
2020, BGL declared maiden final dividend for
decreased from 26.86% to 26.77% in the current
FY 2019-20. Accordingly, HPCL received the
year. Similarly, the shareholding in MSEZ Power
same on its stake of 48.73% in the company
Ltd has decreased from 26.86% to 26.77% and
which has been considered in the Standalone
Mangalore STP has decreased from 18.80% to
Financial Statements. Though KSPL’s appeal is
18.74%in the current year.
sub judice, taking all facts into consideration,
 THE UNSTOPPABLE
ENERGY SOLDIERS
HPCL’s stake in BGL is now considered at the has issued ‘Right of First Offer Notice’ for sale
actual shareholding of 48.73% for the purpose of their entire holding in HSEPL. On March 30,
of CFS which is consistent with the Articles of 2021, the Corporation acquired the entire shares
Association of BGL. Had BGL continued to be held by SPPPL. Upon the acquisition, HSEPL has
consolidated at 24.99%, share of consolidated become a wholly owned subsidiary of HPCL. The
net profit from BGL for the financial year 2020-21 business acquisition was conducted by way of
would have been lower by `230.10 million. entering into a share purchase agreement with
SPPPL and a consideration of `3,970.65 million
l) HPCL Shapoorji Energy Private Limited (HSEPL),
was paid in cash. The setting up of LNG Terminal
a joint venture company with 50:50 ownership
through a wholly owned subsidiary is expected to
with SP Ports Private Limited (SPPPL) was
be cost effective and provide marketing flexibility.
incorporated in October 2013 to set up and operate
The purchase price has been allocated based on
an Liquefied Natural Gas (LNG) regasification
the Management’s estimates of fair values, as
terminal at greenfield port of Chhara, Gir Somnath
follows:
District, Gujarat. On October 12, 2020, SPPPL

(` in million)
Component Acquiree’s carrying amount Fair value adjustments

Non-Current Assets
• Property, Plant and Equipment 1,037.46
• Capital Work-in-Progress 10,742.42
• Other Intangible Assets 0.15
• Financial Assets 2.46
• Other Non-Current Assets1 2,944.57
Current Assets
• Financial Assets2 149.74
• Current Tax Assets (Net) 1.00
NIL
• Other Current Assets 146.51
Non-Current Liabilities
• Provisions 1.70
• Other Financial Liabilities3 1,098.31
Current Liabilities
• Financial Liabilities4 8,591.67
• Other Current Liabilities 85.02
• Provisions 0.19
472
Fair Value of Assets acquired less Liability Assumed (A) 5,247.43
Consideration Transferred (B) 3,970.65
Acquisition date fair value of existing equity interest ( C) 4,326.00
Goodwill (B+C-A) 3,049.22
Total Purchase Price
1. Includes `2,935.60 million towards Capital Advance & Balance with Government Authorities.
2. Includes `149.30 million towards Cash, Cash Equivalent & Other Bank Balances.
3. Includes `1,098.31 million towards Lease Obligations.
4. Includes `8,492.93 million payable towards capital expense creditors.
 ANNUAL REPORT
2020-21
i. In the Energy space, the thrust of Government is iii. Fair value of equity interest in the HSEPL held
providing clean fuels. The share of Natural Gas in by the Corporation, immediately before the
the Energy basket of the Nation, which is at 6% acquisition date is `4,326.00 million and an
now, is proposed to be leapfrogged to 15%. The amount of `1,589.91 million has been recognized
Corporation does not have stake in any of the 6 as gain as a result of re-measuring to the fair
operational LNG Re-gasification terminals in the value the equity interest in the HSEPL held by
country. In an opportune moment such as now, Corporation and is grouped under ‘Note No. 38
when the Joint Venture Partner has issued ‘Right Other Income’.
of First Offer Notice’ for sale of their holding, it
iv. The Consolidated Net Profit before Tax includes
is taken advantage of as setting up another
an amount of `0.20 million of loss of the HSEPL
Greenfield in this space involves considerable
as subsidiary. Had the business combination
time and effort. The Corporation together with
occurred as of 01.04.2020, Consolidated Net
its group Companies have captive consumption
Profit before Tax would have been higher by
of Natural Gas, there are LNG Retail Stations
`39.70 million.
coming up, piloting of which is ongoing, setting
up of LCNG Stations is under consideration, all Note: Ujjwala Plus Foundation, a joint venture of Indian

Consolidated Financial Statements

of these would make LNG regasification terminal, Oil Corporation Limited (IOCL), Bharat Petroleum
a very attractive business proposition and long Corporation Limited (BPCL) and Hindustan Petroleum
term value to the Corporation. Corporation Ltd (HPCL) with fund contribution in the
ratio 50%: 25%: 25%, respectively was incorporated
ii. An amount of `0.70 million has been incurred on 21st July, 2017 as a not-for-profit Private Company
towards acquisition related cost, which has been Limited by Guarantee (without Share Capital) under
charged to the Statement of Profit and Loss Section 8 of the Companies Act 2013. Ujjwala Plus
under ‘Note No. 41 Production, Transportaion, Foundation has not been considered for consolidation
Selling and Distribution Expenditure’. being a not-for-profit company.

473

Fire drills are regularly conducted at all installations of ONGC to

prepare for any crisis
 THE UNSTOPPABLE
ENERGY SOLDIERS
5. Critical Accounting Judgments, Assumptions subsidiaries) is US Dollar which is the currency
and Key Sources of Estimation Uncertainty in which it primarily generates and expends
cash and accordingly the functional currency
Inherent in the application of many of the
of OVL group has been assessed as US Dollar.
accounting policies used in preparing the
Consolidated Ind AS Financial Statements is (b) Classification of investment
the need for Management to make judgments,
Judgement is required in assessing the level
estimates and assumptions that affect the
of control obtained in a transaction to acquire
reported amounts of assets and liabilities, the
an interest in another entity; depending
disclosure of contingent assets and liabilities,
upon the facts and circumstances in each
and the reported amounts of revenues and
case, the Company may obtain control, joint
expenses. Actual outcomes could differ from
control or significant influence over the entity
the estimates and assumptions used.
or arrangement. Transactions which give the
Estimates and underlying assumptions are Company control of a business are business
reviewed on an ongoing basis. Revisions to combinations. If the Company obtains joint
accounting estimates are recognized in the control of an arrangement, judgement is also
period in which the estimates are revised and required to assess whether the arrangement
future periods are affected. is a joint operation or a joint venture. If the
Company has neither control nor joint control,
Key source of judgments, assumptions and
it may be in a position to exercise significant
estimation uncertainty in the preparation of
influence over the entity, which is then classified
the Consolidated Ind AS Financial Statements
as an associate.
which may cause a material adjustment to
the carrying amounts of assets and liabilities (i) In ONGC Petro additions Limited as
within the next financial year, are in respect joint venture (OPaL)
of functional currency, Oil and Gas reserves,
The Company has 49.36% equity
impairment, useful lives of Property, Plant and
interest in OPaL. The Company has also
Equipment, depletion of oil and gas assets,
subscribed for 3,451.24 million (previous
decommissioning provision, employee benefit
year 2,558.00 million) share warrants
obligations, provisions, provision for income
entitling the Company to exchange each
tax, measurement of deferred tax assets and
warrant with an equity share of face value
contingent assets & liabilities.
of `10 each against which `9.75 has been
5.1. Critical judgments in applying accounting paid.
policies
Further the Company has entered
The following are the critical judgements, apart into an arrangement for backstopping
from those involving estimations (refer Note No. support towards repayment of principal
5.2), that the Management have made in the and coupon of Compulsory Convertible
474 process of applying the Group’s accounting Debentures (CCDs) amounting to
policies and that have the significant effect on `77,780.00 million (previous year
the amounts recognized in the Consolidated `77,780.00 million) issued by ONGC Petro
Ind AS Financial Statements. additions Limited in three tranches. The
outstanding interest accrued as at March
(a) Determination of functional currency
31, 2021 is `1,926.75 million (Previous
Currency of the primary economic environment year `2,722.77 million).
in which the Group’s entities operates (“the
functional currency”) is Indian Rupee (`) in which The Management has evaluated the
the entities primarily generates and expends interest in OPaL to be in the nature of joint
cash. However, primary economic environment venture as the shareholder agreement
in which OVL group (ONGC Videsh Ltd and its between all the shareholders provides
for sharing of control of the decisions
 ANNUAL REPORT
2020-21
of relevant activities that require the (d) Determining whether an arrangement
unanimous consent of all the parties contain leases and classification of leases
sharing control.
The Group enters into hiring/service
(ii) In associates despite participating arrangements for various assets/services. The
share being less than 20% Group evaluates whether a contract contains a
lease or not, in accordance with the principles
Considering the power to participate
of Ind AS 116. This requires significant
in the financial and operating policy
judgements including but not limited to,
decisions of the investees exercised
whether asset is implicitly identified, substantive
by the Group in accordance with the
substitution rights available with the supplier,
applicable agreements and /or otherwise,
decision making rights with respect to how
the following entities are considered
the underlying asset will be used, economic
associates of the Group despite the
substance of the arrangement, etc.
participating interest / shareholding
percentage / right percentage being less Determining lease term (including extension
than 20%: and termination options)

Consolidated Financial Statements

• South East Asia Gas Pipeline The Group considers the lease term as the
(shareholding of the Group 8.347%) non-cancellable period of a lease adjusted
with any option to extend or terminate the
• Petro Carabobo S.A., Venezuela
lease, if the use of such option is reasonably
(shareholding of the Group 11%)
certain. Assessment of extension/termination
The Company has 12.50% equity interest options is made on lease by lease basis, on
in PLL. It was classified as Joint Venture in the basis of relevant facts and circumstances.
Previous GAAP, however, in terms of Para The lease term is reassessed if an option is
7 of Ind AS 111 “Joint Arrangements”, actually exercised. In case of contracts. where
unanimous consent of all promoters is not the Group has the option to hire and de-hire the
required in relevant activities in PLL and underlying asset in some circumstances (such
therefore PLL is not classified as Joint as operational requirements), the lease term is
Venture. The Company has significant considered to be initial contract period.
influence on PLL by way of having right to
Identifying lease payments for computation
appoint a director in PLL and participate in
of lease liability
its business decisions, therefore the same
has been classified as an Associate of the To identify fixed (including in-substance fixed)
Company. lease payments. the Group consider the non-
operating day rate/standby as minimum fixed
(c) In Joint venture despite participating share
lease payments for the purpose of computation
more than 50%
of lease liability and corresponding right of use
In case of HPCL Rajasthan Refinery Ltd. asset. 475
(HRRL) wherein subsidiary company HPCL
Low value leases
held majority voting rights (74% stake), other
JV partner has substantive participative rights Ind AS 116 requires assessment of whether an
through its right to affirmative vote items. underlying asset is of low value. if lessee opts
Accordingly, being a company with joint control, for the option of not to apply the recognition
HRRL have been considered as Joint Venture and measurement requirements of Ind AS 116
company for the purpose of consolidation of to leases where the underlying asset is of low
financial statement under Ind AS. However, for value. For the purpose of determining low value,
the purpose of Companies Act 2013, HRRL has the Group has considered nature of assets and
been classified as subsidiary as defined under concept of materiality as defined in Ind AS 1
section 2 therein. and the conceptual framework of Ind AS which
involve significant judgement.
 THE UNSTOPPABLE
ENERGY SOLDIERS
(e) Evaluation of indicators for impairment of Oil associates and joint ventures
and Gas Assets
The management exercises judgement in
The evaluation of applicability of indicators of accounting for deferred tax liability / deferred
impairment of assets requires assessment of tax asset in respect of Group’s investments
external factors (significant decline in asset’s in respect of undistributed profits/losses
value, significant changes in the technological, of subsidiaries, branches, investments
market, economic or legal environment, in associates and joint ventures. In the
market interest rates etc.) and internal factors judgement of the management, in respect of
(obsolescence or physical damage of an asset, undistributed profits/losses of subsidiaries,
poor economic performance of the asset etc.) branches, investments in joint ventures, the
which could result in significant change in management is able to control the timing of the
recoverable amount of the Oil and Gas Assets. reversal of the temporary differences and the
temporary differences will not be reversed in
(f) Oil & Gas Accounting
the foreseeable future.
The determination of whether potentially
Accordingly, the Group does not recognise a
economic oil and natural gas reserves
deferred tax liability for all taxable temporary
have been discovered by an exploration
differences associated with investments in
well is usually made within one year of well
subsidiaries, branches and interests in joint
completion, but can take longer, depending
ventures.
on the complexity of the geological structure.
Exploration wells that discover potentially 5.2. Assumptions and key sources of estimation
economic quantities of oil and natural gas and uncertainty
are in areas where major capital expenditure
Information about estimates and assumptions
(e.g. an offshore platform or a pipeline) would
that have the significant effect on recognition
be required before production could begin,
and measurement of assets, liabilities, income
and where the economic viability of that major
and expenses is provided below. Actual results
capital expenditure depends on the successful
may differ from these estimates.
completion of further exploration work in the
area, remain capitalized on the consolidated (a) Estimation of provision for decommissioning
balance sheet as long as additional exploration The Group estimates provision for
or appraisal work is under way or firmly planned. decommissioning as per the principles of
It is not unusual to have exploration wells Ind AS 37 ‘Provisions, Contingent Liabilities
and exploratory-type stratigraphic test wells and Contingent Assets’ for the future
remaining suspended on the consolidated decommissioning of Oil & Gas assets at the
balance sheet for several years while additional end of their economic lives. Most of these
appraisal drilling and seismic work on the decommissioning activities would be in the
476 potential oil and natural gas field is performed future, the exact requirements that may have
or while the optimum development plans and to be met when the removal events occur
timing are established. All such carried costs involve uncertainty. Technologies and costs
are subject to regular technical, commercial for decommissioning are constantly changing.
and management review on at least an annual The timing and amounts of future cash flows
basis to confirm the continued intent to develop, are subject to significant uncertainty.
or otherwise extract value from, the discovery. The timing and amount of future expenditures
Where this is no longer the case, the costs are are reviewed annually or when there is a
immediately expensed. material change, together with rate of inflation
(g) Deferred tax liability / deferred tax asset for escalation of current cost estimates and the
in respect of undistributed profits/losses interest rate used in discounting the cash flows.
of subsidiaries, branches, investments in The economic life of the Oil & Gas assets is
 ANNUAL REPORT
2020-21
estimated on the basis of long term production Management’s best estimate of future crude
profile of the relevant Oil & Gas asset. oil and natural gas prices, production and
reserves volumes.
(b) Determining discount rate for computation
of lease liability The present values of cash flows are determined
by applying pre tax-discount rates for crude oil
For computation of lease liability. Ind AS
and value added products revenue, which are
116 requires lessee to use their incremental
measured in US$. Future cash inflows from
borrowing rate as discount rate if the rate
sale of crude oil and value added products are
implicit in the lease contract cannot be readily
estimated using Management’s best estimate
determined.
of future crude oil and natural gas prices and its
For leases denominated in Group functional co-relations with benchmark crudes and other
currency, the group considers the incremental petroleum products.
borrowing rate to be risk free rate of
Future cash flows from sale of natural gas are
government bond as adjusted with applicable
also computed based on the expected future
credit risk spread and other lease specific
prices on the basis of the notification issued

Consolidated Financial Statements

adjustments like relevant lease term. For
by the Government of India and discounted
leases denominated in foreign currency, the
applying the rate applicable to the cash flows
Group considers the incremental borrowing rate
measured in US$ in view of the new pricing
as risk free rate based on US treasury bills as
guidelines issued by GoI.
adjusted with applicable credit risk spread and
other lease specific adjustments like relevant Further, in respect of subsidiary company
lease term and currency of the obligation. ONGC Videsh Ltd, the present values of
cash flows are determined by applying pre-
(c) Determination of cash generating unit (CGU)
tax discount rates that reflects current market
The Group is engaged mainly in the business assessments of time value of money and the
of oil and gas exploration and production in risks specific to the liability in respect of each
Onshore and Offshore. In case of onshore of the CGUs. Future cash inflows from sale of
assets, the fields are using common production/ crude oil are computed using the future prices,
transportation facilities and are sufficiently on the basis of market-based forward prices of
economically interdependent to constitute a the Dated Brent crude oil as per assessment by
single cash generating unit (CGU). Accordingly, Bloomberg or Brent crude oil forward/forecast
impairment test of all onshore fields in India is prices by independent reputed third parties
performed in aggregate of all those fields at and its co-relations with benchmark crudes and
the Asset Level. In case of Offshore Assets, a other petroleum products. Future cash flows
field is generally considered as CGU except from sale of natural gas are also computed
for fields which are developed as a Cluster or based on the expected future prices on the
group of Clusters, for which common facilities basis of the prices determined in accordance
are used, in which case the impairment testing with the respective agreements and / or market
477
is performed in aggregate for all the fields forecast. In assessing the production profile the
included in the cluster or group of Clusters. Company assesses its reserves through the full
(d) Impairment of assets period, considering all contractually possible
extensions, over which they are economically
Determination as to whether, and by how much, producible without restricting them to the term
a CGU is impaired involves Management of license.
estimates on uncertain matters such as future
prices, the effects of inflation on operating The discount rate used is based upon the cost
expenses, discount rates, production profiles of capital from an established model.
for crude oil, natural gas and value added The Value in use of the producing/developing
products. For Oil & Gas assets, the expected CGUs is determined under a multi-stage
future cash flows are estimated using
 THE UNSTOPPABLE
ENERGY SOLDIERS
approach, wherein future cash flows are and engineering data, can be estimated with
initially estimated based on Proved Developed reasonable certainty to be commercially
Reserves. Under circumstances where the recoverable from a given date forward
further development of the fields in the CGUs from known reservoirs and under defined
is under progress and where the carrying economic conditions, operating methods,
value of the CGUs is not likely to be recovered and government regulations. Further it defines
through exploitation of proved developed Developed Reserves as expected quantities to
reserves alone, the Proved and probable be recovered from existing wells and facilities
reserves (2P) of the CGUs are also taken for and Undeveloped Reserves as the Quantities
the purpose of estimating future cash flows. In expected to be recovered through future
such cases, full estimate of the expected cost significant investments.
of evaluation/development is also considered
Volumetric estimation is the main procedure in
while determining the value in use. In assessing
estimation which uses reservoir rock and fluid
the production profile the group assesses its
properties to calculate hydrocarbons in-place
reserves through the full period, considering all
and then estimate that portion which will be
contractually possible extensions, over which
recovered from it. As the field gets matured and
they are economically producible without
reasonably good production history is available,
restricting them to the term of license.
then performance methods such as material
The discount rates applied in the assessment balance, simulation, decline curve analysis are
of impairment calculation are re-assessed applied to get more accurate assessments of
each year. Reserves.
(e) Estimation of reserves The annual revision of estimates is based on the
yearly exploratory and development activities
Management estimates reserves in relation to
and results thereof. New in-place Volume
all the Oil and Gas Assets based on the policies
and Estimated Ultimatate Recovery(EUR) are
and procedures determined by the Reserves
estimated for new field discoveries or new pool
Estimation Committee of the Company (REC).
discoveries in already discovered fields. Also,
The estimates so determined are used for
delineation/appraisal activities lead to revision
the computation of depletion and impairment
in estimates due to new sub-surface data.
testing.
Similarly, review /reinterpretation exercise is
The year-end reserves of the Group are also carried out for old fields due to necessity of
estimated by the REC which follows international revision in petro-physical parameters, updating
reservoir engineering procedures consistently. of static and dynamic models and performance
For reporting its petroleum resources, group analysis leading to change in reserves.
follows universally accepted Petroleum Intervention of new technology, change in
Resources Management System-PRMS classifications and contractual provisions also
478 (2018)) sponsored by Society of Petroleum necessitate revision in estimation of Reserves.
Engineers (SPE), World Petroleum Council
As per Standards Pertaining to the Estimating
(WPC), American Association of Petroleum
and Auditing of Oil and Gas Reserves
Geologists(AAPG), Society of Petroleum
Information (revised June 2019), approved by
Evaluation Engineers (SPEE), Society of
the SPE Board on June 25, 2019
Exploration Geophysicists (SEG), Society of
Petrophysicists and Well Log Analysts (SPWLA) “The reliability of Reserves information is
and European Association of Geoscientists considerably affected by several factors.
and Engineers (EAGE). Initially, it should be noted that Reserves
information is imprecise as a result of the
PRMS(2018) defines Proved Reserves under
inherent uncertainties in, and the limited nature
Reserves category as those quantities of
of, the accumulation and interpretation of data
petroleum that, by analysis of geoscience
upon which the estimating and auditing of
 ANNUAL REPORT
2020-21
Reserves information is predicated. Moreover, probability of the Group’s future taxable income
the methods and data used in estimating against which the Deferred Tax Assets can be
Reserves information are often necessarily utilized. In addition, significant judgement is
indirect or analogical in character rather than required in assessing the impact of any legal or
direct or deductive...” economic limits or uncertainties.
… “the estimation of Reserves and other Subsidiary Company OMPL, has recognized
Reserves information is an imprecise science Deferred Tax Asset on unused tax losses as at
because of the many unknown geological and March 31, 2021. It has followed the provisions
reservoir factors that can only be estimated of Ind AS 12 on “Income Taxes” to recognize
through sampling techniques. Reserves are the Deferred Tax Asset on unused tax losses.
therefore only estimates, and they cannot It has incurred losses in the past and the
be audited for the purpose of verifying recognition of Deferred Tax Asset arising from
exactness…” unused tax losses under such circumstances
call for assessment of having sufficient
The Group uses the services of third party
taxable temporary difference or convincing
agencies for due diligence and it gets the

Consolidated Financial Statements

other evidence that sufficient taxable profit is
reserves of its assets audited periodically by
available against which the unused tax losses
third party internationally reputed consultants
can be utilized. In this respect, the Subsidiary
who adopt latest industry practices for their
Company assessed its future business outlook
evaluation.
and forecasted the future available taxable
(f) Defined benefit obligation (DBO) profit on the basis of following and recognized
Management’s estimate of the DBO is based the Deferred Tax Asset on unused tax losses:
on a number of critical underlying assumptions • Committed long-term/short-term offtake
such as standard rates of inflation, medical cost arrangement for main products
trends, mortality, discount rate and anticipation
• Long term supply/return-stream
of future salary increases. Variation in these
arrangement with parent company.
assumptions may significantly impact the
DBO amount and the annual defined benefit • Market expansion with new products
expenses.
• Export of by-products
(g) Litigations
• Projects / measures taken to improve -
From time to time, the Group is subject to legal plant capacity utilization, feed processing
proceedings and the ultimate outcome of each and product yield, cost effectiveness in
being always subject to many uncertainties utilities consumption etc.
inherent in litigation. A provision for litigation
• Arrangement to buy low cost fuel i.e.
is made when it is considered probable that a
Natural Gas
payment will be made and the amount of the 479
loss can be reasonably estimated. Significant It has considered the recognition criteria’s
judgement is made when evaluating, among prescribed in the standard and to the extent
other factors, the probability of unfavourable that it is not probable that taxable profit will be
outcome and the liability to make a reasonable available against which the unused tax losses
estimate of the amount of potential loss. can be utilized, the deferred tax asset is not
Provision for litigations are reviewed at the end recognized. Further, significant judgement has
of each accounting period and revisions made been used in assessing the impact of any legal
for the changes in facts and circumstances. or economic limits or uncertainties including
market volatilities and capacity utilization while
(h) Recognition of deferred tax assets recognizing the deferred tax asset on unused
The extent to which Deferred Tax Assets can be tax losses.
recognized is based on an assessment of the
 THE UNSTOPPABLE
ENERGY SOLDIERS
6. Oil and gas assets
(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
Gross Cost
Opening Balance (Note No. 6.1 and 6.2) 2,446,314.96 2,310,223.74
Reclassified to ROU Asset pursuant to adoption of Ind AS 116 - (18,959.76)
Opening Balance (Restated) 2,446,314.96 2,291,263.98
Transfer from Intangible assets under development- Exploratory wells in progress 10,589.63 9,158.45
Transfer from Development Wells-in-Progress 79,844.87 82,889.41
Increase/(Decrease) in decommissioning costs 8,373.31 (5,904.59)
Additions during the year 50,299.94 77,410.23
Acqusition Cost - 2,870.50
Deletion/Retirement during the year (26,462.60) (50,973.76)
Other Adjustments 112.18 546.72
Foreign currency translation adjustment (Note No. 6.4) (21,748.74) 39,054.02
Total 2,547,323.55 2,446,314.96
Less: Accumulated Depletion & Impairment
Accumulated Depletion
Opening Balance 966,160.90 831,300.53
Reclassified to ROU Asset pursuant to adoption of Ind AS 116 - (12,615.17)
Opening Balance (Restated) 966,160.90 818,685.36
Depletion for the year (Note No. 43) 159,506.74 166,096.87
Deletion / retirement during the year (26,368.01) (35,499.25)
Other Adjustments 46.55 129.97
Foreign currency translation adjustment (Note No. 6.4) (12,553.83) 16,747.95
480 Total 1,086,792.35 966,160.90
Accumulated Impairment
Opening Balance 79,712.68 35,129.34
Impairment provided during the year (Note No. 6.5) 22,417.55 55,536.69
Write back of Impairment (33,827.89) (16,744.05)
Reclassification - 3,731.28
Foreign currency translation adjustment (Note No. 6.4) (579.67) 2,059.42
Total 67,722.67 79,712.68
Carrying amount of Oil and Gas Assets 1,392,808.53 1,400,441.38
 ANNUAL REPORT
2020-21
6.1. Except for the subsidiary OVL, the Group has (`2,402.18 million) for Tapti Part-A facilities
elected to continue with the carrying value of and $ 598.24 million (`42,506.87 million) for
its Oil and Gas Assets recognized as of April Panna Mukta fields from JV partners (including
1, 2015 (transition date) measured as per the the Company share of 40% in the fields) and
Previous GAAP and used that carrying value acquired the corresponding decommissioning
as its deemed cost as on the transition date obligation with the conditions that Company
as per Para D7AA of Ind AS 101 except for will maintain separate dedicated SRF accounts
decommissioning and restoration provision under SRF scheme, 1999 and extent guideline
included in the cost of Oil and Gas Assets of SRF, the Company will not utilise the fund of
which have been adjusted in terms of para D21 dedicated SRF fund of Panna- Mukta Fields and
of Ind AS 101 ‘First –time Adoption of Indian Tapti Part-A facilities for any other purpose, other
Accounting Standards’. than one defined under SRF scheme/guideline.
Company will periodically carry out the re-
6.2. During the year 2016-17, Tapti A series facilities
estimation of cost of abandonment of Panna-
which were part of the assets of PMT Joint
Mukta Fields and Tapti Part-A facilities as per
Operation (JO) and surrendered by the JO to
existing Company policy and contribute to SRF
the Government of India (GoI) as per the terms

Consolidated Financial Statements

account as per Company policy in nomination
of JO agreement were transferred by GoI to
fields. In case, final actual cost of abandonment
the Company free of cost as its nominee and
of facilities of Panna-Mukta fields at the time of
recorded as a non-monetary grant. During
physical abandonment is higher than approved
the year 2019-20, the Company opted to
abandonment cost plus the accumulated
recognize the non-monetary government grant
amount, Company will contribute the additional
at nominal value and recorded the said facilities
amount required for abandonment. However, in
at nominal value, in line with amendment in Ind
case the actual cost at the time of abandonment
AS 20 ‘Accounting for Government Grants and
is less than the accumulated amount, the
Disclosure of Government Assistance’ vide
balance amount will be transferred to the
Companies (Indian Accounting Standards)
Government of India.
Second Amendment Rules, 2018 (the ‘Rules’).
These assets have been decapitalised / retired 6.3. Union Cabinet, Government of India in its
to the extent of the Company’s share in the Joint meeting held on February 19, 2019, on reforms in
Operation. Exploration and Licensing Policy for enhancing
domestic exploration and production of oil and
Ministry of Petroleum and Natural Gas,
gas, directed to bid out identified marginal
Government of India (GoI) vide letter dated May
nomination fields operated by National Oil
31, 2019 assigned the Panna-Mukta fields w.e.f.
Companies. In pursuance to decision of Union
December 22, 2019 on nomination basis to the
Cabinet, the Company offered 64 such marginal
Company on expiry of present PSC without any
fields which are clustered geographically in 17
cost to ensure continuity of operation. Being a
contract areas for bidding under the supervision
non-monetary grant, the Company has recorded
these assets and grant at a nominal value.
of Directorate General of Hydrocarbons. The 481
Company have notice of award for 49 marginal
Subsequent to assignment of Panna-Mukta fields covering 13 contract areas through
field to the Company GoI has directed JV the bidding process and signed contacts for
partners of the PMT (Panna Mukta & Tapti) field production enhancement for 21 marginal fields
to transfer the existing SRF fund maintained upto March 31, 2021 out of which the company
for decommissioning obligation for Tapti has handed over 3 fields to the contractors upto
Part A facility and Panna Mukta fields to the March 31, 2021 and impact of the same on the
Company along with full financial and physical financial statements for the year ended March
liability of site restoration and abandonment of 31, 2021 is immaterial.
Panna Mukta fields and Tapti Part A facilities.
6.4. The subsidiary company OVL has determined
Accordingly, in previous year 2019-20 the
its functional currency as US$. Above foreign
Company received SRF fund of $ 33.81 million
exchange difference represents differences
 THE UNSTOPPABLE
ENERGY SOLDIERS
on account of translation of the consolidated project are temporarily suspended since April
financial statements of the ONGC Videsh Limited 29, 2012. In view of the same, impairment had
from US$ to Group’s presentation currency “`”. been made in respect of Oil and Gas Assets
Refer Note No. 3.21 and 5.1 (a). amounting to Nil (year ended March 31, 2020
Nil). The cumulative impairment as at March
6.5. Subsidiary OVL has 60% participating interest
31, 2021 is `78.12 million (as at March 31, 2020
in Block XXIV, Syria. In view of deteriorating law
`80.23 million) in respect of the project.
and order situation in Syria, operations of the
7. Other Property, Plant and Equipment
(` in million)
Carrying amount of:(Note No. 7.1) As at As at
March 31, 2021 March 31, 2020
Freehold Land (Note No. 7.2.1) 20,736.47 19,383.07
Building & bunk Houses (Note No. 7.2.3) 90,746.39 87,259.82
Roads and Culverts 16,422.65 16,559.29
Plant & equipment (Note No. 7.2.4, 7.3.1 & 7.3.2) 577,672.05 581,142.13
Railway Siding & Rolling Stock 5,065.45 5,022.50
Furniture & fixtures 3,863.09 4,294.21
Office equipments 22,472.49 22,479.79
Vehicles, Ships & Boats 4,279.59 5,133.16
Total 741,258.18 741,273.97

482

15 major projects are under implementation with a total project

cost of around `605,015 million with envisaged oil and gas gain
of ~113 MMTOE
 (` in million)
Cost or deemed cost Freehold Perpetual Buildings Roads and Plant & Railway Furniture Office Vehicles, Total
Land Leasehold & Bunk Culverts Equipments Siding & & Fixtures Equip- Ships &
Land Houses Rolling ments Boats
Stock
Balance at April 1, 2019 17,742.35 5,638.66 100,674.60 29,856.44 771,127.89 4,055.10 16,284.37 43,513.81 13,806.49 1,002,699.71
Additions 1,648.17 - 9,146.46 3,447.68 72,059.90 2,281.05 1,075.05 8,629.17 1,906.21 100,193.69
Disposals/adjustments (Note (7.82) (5,638.66) (163.07) (34.20) (4,297.86) (7.90) (1,143.76) (1,278.51) (1,310.77) (13,882.55)
No. 7.3.3)
Effect of exchange difference 0.37 - 1,118.89 - 4,231.16 - 494.52 699.87 80.06 6,624.87
(Note No. 7.4.1)
Balance at March 31, 2020 19,383.07 - 110,776.88 33,269.92 843,121.09 6,328.25 16,710.18 51,564.34 14,481.99 1,095,635.72
Additions 1,273.16 - 8,128.53 3,606.64 45,791.97 480.16 994.23 6,880.80 1,265.06 68,420.55
Disposals/adjustments (Note 81.30 - (82.38) (36.40) (11,993.64) - (630.18) (950.83) (1,549.13) (15,161.26)
No. 7.3.3)
Effect of exchange difference (0.07) - (371.11) - (1,220.23) - (25.47) (222.57) (40.61) (1,880.06)
(Note No.7.4.1)
Balance at March 31, 2021 20,737.46 - 118,451.92 36,840.16 875,699.19 6,808.41 17,048.76 57,271.74 14,157.31 1,147,014.95

Accumulated depreciation and Freehold Perpetual Buildings Roads and Plant & Railway Furniture Office Vehicles, Total
impairment Land Leasehold & Bunk Culverts Equipments Siding & & Fixtures Equip- Ships &
Land Houses Rolling ments Boats
Stock
Balance at April 1, 2019 - - 18,618.73 13,073.87 214,115.88 918.70 11,311.90 23,503.71 8,774.53 290,317.32
Depreciation expense - - 4,390.90 3,650.46 46,749.58 394.95 1,549.63 6,072.47 1,826.49 64,634.48
Impairment loss recognised in - - - - 277.27 - 0.83 62.77 7.18 348.05
profit or loss
Eliminated on disposal/adjust- - - (45.03) (13.70) (3,091.62) (7.90) (925.80) (1,193.28) (1,291.66) (6,568.99)
ments of assets
Impairment loss recognized - - (1.42) - (1.54) - (15.47) (5.98) (15.70) (40.11)
back during the year
Effect of exchange difference - - 553.88 - 3,929.39 - 494.88 644.85 47.99 5,670.99
(Note No. 7.4.1)
Balance at March 31, 2020 - - 23,517.06 16,710.63 261,978.96 1,305.75 12,415.97 29,084.54 9,348.83 354,361.75
Depreciation expense (Note No. 1.01 - 4,392.90 3,734.38 47,530.25 437.21 1,260.32 6,697.68 2,096.09 66,149.85
7.4.6)
Impairment loss recognised in - - 13.59 - 48.30 - 1.74 118.15 0.28 182.06
profit or loss

ANNUAL REPORT
Eliminated on disposal/adjust- - - (24.26) (27.50) (9,979.94) - (465.23) (884.71) (1,536.18) (12,917.82)
ments of assets
Impairment loss recognized - - - - (419.15) - (5.34) (12.05) (3.76) (440.30)
back during the year
Effect of exchange difference (0.02) - (193.76) - (1,131.28) - (21.79) (204.37) (27.54) (1,578.76)
(Note No. 7.4.1)
Balance at March 31, 2021 0.99 - 27,705.53 20,417.51 298,027.14 1,742.96 13,185.67 34,799.24 9,877.72 405,756.77

2020-21
483

Consolidated Financial Statements

 THE UNSTOPPABLE
ENERGY SOLDIERS
7.1. Except for subsidiary OVL , the Group has PSC without any cost to ensure continuity of
elected to continue with the carrying value of operation. Being a non-monetary grant, the
its other Property Plant and Equipment (PPE) Company has recorded these assets and
recognized as of April 1, 2015 (transition date) grant at a nominal value (refer Note No. 6.2).
measured as per the Previous GAAP and used
7.3. In respect of subsidiary MRPL
that carrying value as its deemed cost as on
the transition date as per Para D7AA of Ind AS 7.3.1. Plant and equipment includes `39.15 million
101 except for decommissioning provisions (As at March 31, 2020: `39.15 million) being
included in the cost of other PPE which has Company’s share of an asset jointly owned
been adjusted in terms of para D21 of Ind AS with another company.
101 ‘First –time Adoption of Indian Accounting
Standards’. The deemed cost is further 7.3.2. External commercial borrowing are secured
reduced for the unamortised transaction cost by first pari passu charge over immovable
on borrowings as at April 1, 2015, which were property, plant and equipment and first ranking
pari passu charge over movable property,
earlier capitalised with PPE.
plant and equipment (including but not limited
7.2. In respect of the Company, to plant & machinery, spares, tools, furniture,
fixtures, vehicles and all other movable property,
7.2.1. Land includes 11 numbers (Previous year 2)
plant & equipment) both present and future.
amounting to `1,331.30 million (Previous year
Working capital borrowings from consortium
`1,322.28 million) for which execution of title
banks are secured by way of first ranking pari
deeds is in process.
passu charge by way of hypothecation of
7.2.2. Registration of title deeds in respect of 6 Company’s stocks of Raw Material, Finished
numbers (Previous year 6) buildings is pending Goods, Stock-in-Process, Stores, Spares,
execution having carrying amount of `48.29 Components, Trade receivables, outstanding
million (Previous year `51.22 million). Money Receivables, Claims, Bills, Contract,
7.2.3. Building includes cost of undivided interest in Engagements, Securities both present and
land. future and further secured by second ranking
pari passu charge over companies movable
7.2.4. During the year 2016-17, Tapti A series facilities and immovable property (all Property, Plant &
which were part of the assets of PMT Joint Equipment) both present and future.
Operation (JO) and surrendered by the JO to
the Government of India (GoI) as per the terms 7.3.3. Additions/(adjustments) to property, plant and
of JO agreement were transferred by GoI to the equipment includes ` (173.96) million (for the
Company free of cost as its nominee. During year ended March 31, 2020 `702.71 million)
the year 2019-20, the Company opted to in relation to foreign exchange differences
recognize the non-monetary government grant capitalized as borrowing costs. Asset class
at nominal value and recorded the said facilities wise addition/(adjustments) details are
disclosed below:
484 at nominal value, in line with amendment in Ind
AS 20 ‘Accounting for Government Grants and
(` in million)
Disclosure of Government Assistance’ vide
Companies (Indian Accounting Standards) Year For the For the
Second Amendment Rules, 2018 (the ‘Rules’). year ended year ended
These assets have been decapitalised / retired March 31, March 31,
to the extent of the Company’s share in the 2021 2020
Joint Operation. Asset class Exchange Exchange
7.2.5. Ministry of Petroleum and Natural Gas, differences differences
Government of India vide letter dated May 31, Plant and equipment (173.96) 702.71
2019 has assigned the Panna-Mukta fields
Total (173.96) 702.71
w.e.f. December 22, 2019 on nomination
basis to the Company on expiry of present
 ANNUAL REPORT
2020-21
7.3.4. The Company was eligible for certain assets and to replace or repair such damage
economic benefits such as exemptions from or loss. Under the circumstances, such assets
entry tax, custom duty etc. on import/local are kept in the records of the Company during
purchase of capital goods in earlier years. The the currency of the respective agreements.
Company had accounted benefits received
for custom duty and entry tax on purchase of 7.4.3. ONGC Videsh Atlantic Inc. (OVAI) uses
Property, Plant and Equipment as Government straight line method to charge depreciation
grants. The Company had adjusted the cost on its Property, Plant and Equipment. The total
of Property, Plant and Equipment as at April depreciation charge of OVAI for the year ended
1, 2017 and credited deferred Government March 31, 2021 `1.43 million (for the year
grant amounting to `3,618.21 million. The ended March 31, 2020 `2.43 million) does not
deferred Government grant is amortised over have material impact on financial statements.
the remaining useful life of the Property, Plant 7.4.4. The Property, Plant & Equipment acquired
and Equipment. by the company in a currency other than the
7.4. In respect of subsidiary, OVL, functional currency (including assets located
in India, purchased in INR(`)) is recognised

Consolidated Financial Statements

7.4.1. Subsidiary company ONGC Videsh Limited in US$ at the exchange rate on the date of
has determined its functional currency as US$. transaction, as US$ is the functional currency
Adjustments includes net effect of exchange of the company. Subsequently, all property,
differences of ` (301.30) million (as at March plant and equipment balance are presented in
31, 2020: `953.88 million) on account of INR(`) by translating using the US$ to INR(`)
translation of the financial statements of the foreign exchange rate at the reporting date.
ONGC Videsh Limited from US$ to Group’s
presentation currency “`”. Refer Note No. 3.21 7.4.5. All items of other Property, plant & equipment
and 5.1 (a). are not directly related to production activities.
Property, plant & equipment (including freehold
7.4.2. The Company carries on its business in respect land & building) include the company’s
of exploration, development and production share of assets in joint operations (located
of hydrocarbons under agreements with host outside of India). Accordingly the title deed/
governments directly or in consortium with ownership documents are in the possession
other partners (Consortium). Several of these of the operators. Depreciation is provided as
agreements, governing Company’s activities per Schedule II of the Companies Act, 2013
in the fields/projects, provide that the title or based on the technical assessment by the
to the property, plant and equipment and Company.
other ancillary installations shall pass to host
Government or its nominated entities either 7.4.6. Freehold land relates to the Company’s share
upon acquisition/first use of such assets or in overseas oil and gas operations of ACG
upon 100% recovery of such costs through project. The depreciation on the same has
allocation of “Cost Oil” and “Cost Gas” or been provided on straight line basis over the 485
upon relinquishment of the relevant contract duration of the license period.
areas or termination of the relevant agreement.
7.5. In respect of subsidiary, PMHBL,
However, as per the terms of the agreements,
the Consortium and/or operator have custody 7.5.1. The Company is still in the process of getting
of all such assets and is entitled to use, free of registered its acquisition of Land at seven
charge all such assets for petroleum operations locations, acquired through KIADB for
throughout the term of the respective Sectionalized Valve Stations. Until registration
agreements. The Consortium also has the of the ‘lease cum sale agreement’, amount
custody and maintenance of such assets and paid towards acquisition is shown as ‘Capital
bears all risks of accidental loss and damage advance’ under Note No. 20 - Other Non-
and all costs necessary to maintain such Current Assets.
 THE UNSTOPPABLE
ENERGY SOLDIERS
7.5.2. In respect of land allotted by KIADB amounting to B) Includes assets held under PAHAL
`2.96 million , lease cum sale agreement (DBTL) scheme against which financial
entered into and the absolute sale deed has assistance is being provided by MOP&NG:
not been executed as yet though the lease
(` in million)
term has expired.
Original Cost
7.6. In respect of subsidiary, HPCL,
Description As at March As at March
7.6.1. Includes assets costing `0.07 million (as on 31, 2021 31, 2020
March 31, 2020: `0.07 million) of erstwhile
Kosan Gas Company not handed over to the Computer Software 74.90 74.90
Corporation. In case of these assets, Kosan
Computers/ End use 56.50 56.50
Gas Company was to give up their claim.
devices
However, in view of the tenancy right sought by
third party, the matter is under litigation. Office Equipment 0.10 0.10
7.6.2. Includes `8,102.80 million (as on March Automation, Servers 15.50 15.50
31, 2020: `7,995.50 million) towards Land, & Networks
Building, Plant & Equipment, Furniture &
Total 147.00 147.00
Fixtures, Transport Equipments, Office
Equipments, Pipelines, Railway Sidings, etc. 7.6.5. Assets held for sale consists of items such
representing Company’s Share of Assets, as Plant and equipment, office equipment,
jointly owned with other Companies. transport equipment, buildings, furnitures and
7.6.3. Includes `322.50 million (as on March 31, fixtures and roads and culverts which have
2020: `323.50 million) towards Roads & been identified for disposal due to replacement/
Culverts, Transformers & Transmission lines, obsolescence of assets which happens in the
Railway Sidings & Rolling Stock, ownership of normal course of business. These assets are
which does not vest with the Corporation. The expected to be disposed off within the next
Corporation is having operational control over twelve months. On account of classification of
such assets. These assets are amortized at the these assets as ‘Asset held for sale’, a loss of
rate of depreciation specified in Schedule II of `139.20 million during the year (2019-20:
Companies Act, 2013. `179.70 million) has been recognised in the
statement of profit and loss.
7.6.4. A) Includes following assets which are used for
distribution of PDS Kerosene under Jana 7.6.6. In accordance with Para 7AA of Ind AS 21 read
Kalyan Pariyojana against which financial with Para D13AA of Ind AS 101, the Corporation
assistance is being provided by OIDB. has adjusted the exchange differences arising
(` in million) on long term foreign currency monetary items
to the cost of assets and depreciated over the
486 Original Cost balance useful life of the assets.
Description As at March As at March 7.6.7. The Group has considered pipeline assets
31, 2021 31, 2020 laid within the boundary limit of its premises
Roads & culverts 1.30 1.30 as integral part of Tanks / Other Plant and
Machinery and have been depreciating such
Buildings 15.80 16.20 assets based on the useful life of associated
Plant & Equipment, in line with the Schedule II
Plant & Equipment 20.70 20.90
of the Companies Act, 2013.
Total 37.80 38.40
 ANNUAL REPORT
2020-21
7.6.8. Includes assets of `10.30 million (31.03.2020: 7.6.11. The process of capitalization in respect of
`12.00 million) forming part of Plant & Property, Plant and Equipment including
Equipment, Buildings & Roads & Culverts, accounting of Capital Work-in-Progress
wherein though Infrastructure Facilities were is under continuous review and updation,
provided at Railway Premises, no sales wherever required, is being carried out on a
transactions were entered into during current regular basis.
financial year.

7.6.9. Assets of `0.20 million (31.03.2020 : `0.30 8. Right of Use (ROU) Assets
million) comprising 3 number of properties (` in million)
(31.03.2020: 4) towards which title deeds
for freehold/leasehold are not available and As at As at
further for assets of `22.50 million (31.03.2020 : Carrying amount of: March 31, March 31,
`22.70 million) comprising of 13 number of 2021 2020
properties (31.03.2020 : 14) for which property
tax receipts are available. Further in case of Land 50,891.98 46,786.54

Consolidated Financial Statements

land taken on lease from Vishakhapatnam Port
Building & bunk
Trust (VPT) Legal formalities of registration of 1,017.97 651.55
Houses
lease deed is pending in 36 cases having Gross
block as at 31.03.2021 `5,934.50 million and Plant & equipments 78,278.56 82,132.19
Net Block as at 31.03.2021 `5,430.90 million.
Vehicles, Ships &
7.6.10. Additions to Other Property, Plant and 28,875.33 17,547.35
Boats
Equipments during the year includes assets
amounting to `2.76 million acquired under Total 159,063.84 147,117.63
business combination. (refer Note. No.4(l))

Cost Land Building Plant & Vehicles, Total

& Bunk Equipments* Ships &
Houses Boats

Balance at April 01, 2019 (Note No. 37,945.16 713.60 101,709.50 14,250.26 154,618.52
8.1)

Additions 10,370.72 217.88 39,096.34 10,643.88 60,328.82

Disposals/adjustments (3.45) - (6,748.52) (11.57) (6,763.54)

Effect of exchange difference (Note 287.03 - (3,701.03) - (3,414.00) 487

No. 8.6.1)

Balance at March 31, 2020 48,599.46 931.48 130,356.29 24,882.57 204,769.80

Additions 6,439.18 715.50 47,174.37 22,699.57 77,028.62

Disposals/adjustments (185.86) (74.30) (12,664.41) (3.94) (12,928.51)

Effect of exchange difference (Note (91.10) - (1,857.56) - (1,948.66)

No. 8.6.1)

Balance at March 31, 2021 54,761.68 1,572.68 163,008.69 47,578.20 266,921.25

 THE UNSTOPPABLE
ENERGY SOLDIERS

Accumulated depreciation and Land Building Plant & Vehicles, Total

impairment & Bunk Equipments* Ships &
Houses Boats
Balance at April 01, 2019 4.49 - 12,615.17 - 12,619.66
Depreciation expense 1,818.54 279.93 42,317.45 7,345.08 51,761.00
Eliminated on disposal/ (10.11) - (4,026.97) (9.86) (4,046.94)
adjustments of assets
Effect of exchange difference - - (2,681.55) - (2,681.55)
(Note No. 8.6.1)
Balance at March 31, 2020 1,812.92 279.93 48,224.10 7,335.22 57,652.17
Depreciation expense 2,107.98 349.08 43,219.02 11,371.59 57,047.67
Eliminated on disposal/ (51.20) (74.30) (5,252.60) (3.94) (5,382.04)
adjustments of assets
Effect of exchange difference - - (1,460.39) - (1,460.39)
(Note No. 8.6.1)
Balance at March 31, 2021 3,869.70 554.71 84,730.13 18,702.87 107,857.41
*ROU Plant & Equipment include right of way for pipelines `2,400.32 million as at March 31, 2020, and `2,430.64 million as at March
31, 2021. Similarly, Accumulated deprecition and impairment includes `93.61 million as at March 31, 2020, and `199.34 million as at
March 31, 2021.

8.1. Effective April 1, 2019, the Group has adopted to Right-of-Use Asset has been capitalized as
Ind AS 116 “Leases”, applied to all lease component of cost of Capital Work-in-Progress
contracts existing on April 1, 2019 using (CWIP).
modified retrospective transition method.
8.5. In respect of subsidiary HPCL,
8.2. In respect of Company, execution of
conveyance deeds is in process in respect 8.5.1. ROU land includes Include Right of Use Assets
of 13 numbers (Previous year 14) lease hold having Gross value `193.80 million (31.03.2020:
lands amounting to `362.69 million (Previous `275.70 million) for land acquired on lease-
year `389.98 million). cum-sale basis from Karnataka Industrial
Area Development Board (KIADB), that has
8.3. The Group has initiated the process of not been amortized over the period of lease
conversion of it’s leasehold land at Vasant Kunj, in view of freehold title that would vest upon
Delhi to freehold land.(refer Note No.20.3) fulfilment of certain terms and conditions, as
per allotment letter.
8.4. In respect of subsidiary MRPL,
488 8.5.2. Additions to ROU land during the year includes
8.4.1. ROU Land includes leasehold lands where the
ownership will be transferred to the Company Right of Use Assets amounting to `1,034.70
at the end of the lease period. These leasehold million acquired under business combination.
lands are not depreciated. (refer Note. No.4(l))

8.4.2. Right-of-Use Assets includes land amounting to 8.6. In respect of subsidiary OVL,
`1,247.51 million (As at March 31, 2020
8.6.1. Group’s subsidiary ONGC Videsh Limited has
`1,305.60 million), which is in possession of
determined its functional currency as US$.
the Company towards which formal lease
Above foreign exchange difference represents
deeds are yet to be executed
differences on account of translation of the
8.4.3. An amount of `37.57 million (As at March 31, consolidated financial statements of the
2020 `43.02 million) for depreciation charged ONGC Videsh Limited from US$ to Group’s
 ANNUAL REPORT
2020-21
presentation currency “`”. Refer Note No. 3.21 specifically, a Floating Production, Storage
and 5.1 (a). and Offloading Vessels (FPSO). BC-10, Brazil
has long-term lease agreement with Tamba
8.6.2. The Company has obtained land located BV. Netherlands (a joint venture company of
at Vasant Kunj, New Delhi under a lease the group), wherein the later is providing these
agreement. The lease term is till perpetuity. equipments to the former. Tamba BV (related
Interest rate applied to lease liability under party) leased these assets from a third party
leases is 8.38% per annum. called Brazilian Deepwater and re-leased these
8.6.3. Under the lease agreement, the company is finance leases to BC-10, Brazil.
required to pay annual lease rental of `31.65 From December 8th, 2020 onwards Tamba no
million till perpetuity. The Company has longer acts as an intermediary for the lease and
recognised a right of use asset (land) based sublease of the FPSO. From this date onwards
on perpetual lease term. No depreciation is Shell directly leases the asset from third party
being charged on such right of use asset as Brazilian Deepwater, to comply with Repetro-
the lease term extends till perpetuity. Sped new regulations in Brazil.

Consolidated Financial Statements

The lease obligations represents the perpetuity The foreign exchange gain/loss arising on
value of annualized lease payment, which account of revaluation of non-current lease
is `377.69 million and will remain same till liability is capitalized to Oil and gas assets and
perpetuity. The undiscounted value of the depleted using unit of production method.
contractual maturity of lease liability for a
perpetual lease is not determinable. However, The details of Oil and gas assets remaining
the present value of such liability has been to be amortised in respect of the long-term
recognised by the company. The finance finance lease agreement is as below:
charge will be `31.65 million on annual basis
till perpetuity.
Exchange differences arising on reporting of long-
The Company does not face a significant term foreign currency monetary items relating to
liquidity risk with regard to its lease liabilities depreciable assets:
as the current assets are sufficient to meet the
obligations related to lease liabilities as and (` in million)
when they fall due.
Year Year
8.6.4. The original term of the FPSO lease contract ended ended
Particulars
of BC-10, Brazil was 15 years with priced March 31, March 31,
extension options for more years according to 2021 2020
the production lifetime. The lease arrangement Amount remaining to 2,342.66 3,164.80
was re-evaluated in accordance with Repetro- be amortised at the
Sped regulations in Brazil. The new term of beginning of the year 489
the FPSO lease is 8 years (up to 2028) with 5
Add: Exchange loss/(gain) 384.35 1,522.93
additional extension options of one year each.
arising during the year
After revaluation, the implicit interest rate for
the FPSO lease is 14.24% Less: Depletion charged 1,049.19 1,484.93
to the statement of profit
8.6.5. BC-10, Brazil (an un-incorporated joint and loss for the year
operation of the Group) has a concession Add: Effect of exchange 137.73 (860.14)
to exploit, develop and produce at the BC- differences
10 block. In order to be able to perform its
Amount remaining to be 1,815.55 2,342.66
development/production activities, Shell, the
amortised at the end of
operator, requires certain equipments, more
the year
 THE UNSTOPPABLE
ENERGY SOLDIERS
9. Capital Work in Progress
(` in million)

Particulars As at As at
March 31, 2021 March 31, 2020
A) Oil and Gas Assets (Note No. 9.1)
(i) Development Wells in progress (Note No. 13.1)
Opening Balance 59,769.92 46,427.83
Expenditure during the year 64,410.29 79,204.70
Depreciation during the year 16,602.41 17,129.46
Transfer to Oil and Gas Assets (79,844.87) (82,889.41)
Foreign currency translation adjustment (Note No. 9.9) (25.82) (102.66)
Total 60,911.93 59,769.92
Less: Accumulated Impairment
Opening balance (Note No. 9.6) 3,870.52 2,590.35
Provided for the year 844.48 1,880.08
Write back during the year (2,806.83) (620.93)
Foreign currency translation adjustment (Note No. 9.9) (3.31) 21.02
Total 1,904.86 3,870.52
Carrying amount of Development wells in progress 59,007.07 55,899.40
(ii) Oil and Gas facilities in progress
Oil and gas facilities 241,586.35 173,823.52
Expenditure during the year 38,592.78 28,647.42
Acquisition Costs- Exploration and Production Asset 1,957.30 1,957.25
Total 282,136.43 204,428.19
Less: Accumulated Impairment
Opening Balance 6,927.10 5,014.66
Provided for the year 1,548.10 6,154.41
Write back during the year (1,618.14) (514.22)
Foreign currency translation adjustment (Note No. 9.9) (0.69) 3.53
490 Reclassification 553.65 (3,731.28)
Total 7,410.02 6,927.10
Carrying amount of Oil and Gas facilities in progress 274,726.41 197,501.09
B) Other Capital Works-in-Progress
Buildings 2,102.34 1,692.50
Plant and equipment 291,956.19 201,209.09
Software - 15.48
Capital stores (including in transit) (Note No. 6.2 and 7.2.4) 2,532.23 3,694.68
Less: Impairment for Non-Moving Items (45.56) (45.61)
Total 296,545.20 206,566.14
 ANNUAL REPORT
2020-21

Particulars As at As at
March 31, 2021 March 31, 2020
Less: Accumulated Impairment
Opening Balance 1,610.37 1,510.39
Provided for the year 10.43 135.19
Written back during the year (0.15) (24.53)
Reclassification (555.80) -
Other adjustments - (10.68)
Total 1,064.85 1,610.37
Carrying amount of capital work in progress 295,480.35 204,955.77

9.1. The Group (Except for OVL) has elected to million) towards depreciation charged to
continue with the carrying value of its Capital Right-of-Use Asset has been capitalized as a

Consolidated Financial Statements

Works-in-Progress recognized as of April 1, 2015 component of cost of Capital Work-in-Progress
(transition date) measured as per the Previous (CWIP).
GAAP and used that carrying value as its deemed
cost as on the transition date as per Para D7AA 9.6. In respect of subsidiary OVL, the company has
of Ind AS 101 except for decommissioning 60% participating interest in Block XXIV, Syria. In
and restoration provision included in the cost view of deteriorating law and order situation in
of Capital Works-in-Progress which have been Syria, operations of the project are temporarily
adjusted in terms of para D21 of Ind AS 101 ‘First suspended since April 29, 2012. In view of the
–time Adoption of Indian Accounting Standards’. same, impairment had been made in respect
of development wells in progress amounting to
9.2. In respect of subsidiary MRPL, additions to Nil (for the year ended March 31, 2020 Nil). The
CWIP includes borrowing costs amounting cumulative impairment as at March 31, 2021 is
to `478.72 million (for the year ended March `122.25 million (as at March 31, 2020 `125.56
31, 2020 `366.61 million) and allocated/will be million) in respect of the project.
allocated to different class of assets. The rate 9.7. In respect of subsidiary OVL, borrowing
used to determine the amount of borrowing cost amounting to `107.60 million has been
costs eligible for capitalization was 7.17% (For capitalised under the Oil and Gas facilities in
the year ended March 31, 2020 was 7.80%) progress during the year ended March 31, 2021
which is the effective interest rate on borrowings. (for the year ended March 31, 2020 `168.00
9.3. In respect of subsidiary MRPL, loan availed million). The weighted average capitalization
against OIDB, which is secured by way of rate on funds borrowed is 2.13% per annum
first ranking pari passu charge by way of (during the year ended March 31, 2020 3.45%
hypothecation / mortgage only on Property, per annum). 491
Plant & Equipment / projects financed out of
loan proceeds of OIDB (refer Note No. 29.6) and 9.8. In respect of subsidiary OVL, impairment
Foreign Currency Term Loan (FCNR) (B) Capex provision reversed amounting to `41.73 million
loan availed from State Bank of India which is (for the year ended March 31, 2020 Nil) pertains
unsecured (refer Note No. 29.13). to facility asset in Block 5A, South Sudan written
off during the year.
9.4. In respect of subsidiary MRPL, an amount of
`89.44 million (As at March 31, 2020 `101.60 9.9. Group’s subsidiary ONGC Videsh Limited has
million) towards Finance cost on lease liability determined its functional currency as US$.
has been capitalized as a component of cost of Above foreign exchange difference represents
Capital Work-in-Progress (CWIP). differences on account of translation of the
consolidated financial statements of the ONGC
9.5. In respect of subsidiary MRPL, an amount of Videsh Limited from US$ to Group’s presentation
`37.57 million (As at March 31, 2020 `43.02 currency “`”. Refer Note No. 3.21 and 5.1 (a).
 THE UNSTOPPABLE
ENERGY SOLDIERS
10 Goodwill (including Goodwill on consolidation)

10.1 Goodwill on asset purchased

(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020

Cost or deemed cost (Note No. 10.2) 4.04 4.04

Accumulated impairment losses - -
Carrying amount of goodwill (A) 4.04 4.04
10.2 In respect of subsidiary MRPL, Goodwill represents excess of consideration paid over net assets acquired
for acquisition of nitrogen plant.

10.3 Goodwill on consolidation

(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020

Cost or deemed cost

Opening balance 237,527.17 218,562.21

Addition during the year (Note No. 4(l)) 3,049.22 -

Derecognition during the year (Note No. 44.1) (168.01) -

Effect of exchange differences (Note No. 10.5) (6,019.18) 18,964.96

Total 234,389.20 237,527.17

Less: Accumulated amortisation

Opening balance 95,164.71 77,682.72

Addition during the year 6,418.51 9,812.74

492
Effect of exchange differences (Note No. 10.5) (2,575.89) 7,669.25

Total 99,007.33 95,164.71

Carrying amount of goodwill on consolidation (B) 135,381.87 142,362.46

Carrying amount of total goodwill (A+B) 135,385.91 142,366.50

10.4 Allocation of goodwill on consolidation to cash generating units is carried out in accordance with the
accounting policy mentioned at Note No. 3.6.

10.5 Group’s subsidiary ONGC Videsh Limited has determined its functional currency as US$. Above foreign
exchange difference represents differences on account of translation of the financial statements of the
ONGC Videsh Limited from US$ to Group’s presentation currency “`”. Refer Note No. 3.21 and 5.1 (a).
 ANNUAL REPORT
2020-21
11 Investment Property 11.1 In respect of subsidiary, MRPL,
(` in million) 11.1.1 Freehold land includes land measuring
As at As at 102.31 acres held for capital appreciation.
Carrying amount of : March March
11.1.2 There is no contractual obligation to
31, 2021 31, 2020
purchase, construct or develop investment
Freehold Land 78.48 78.48 property.
Building 0.23 0.24
11.1.3 The net amount recognised in the Statement
Total 78.71 78.72
of Profit and Loss for investment property
for current year is Nil (Year ended March 31,
Gross Carrying Amount Amount (`) 2020 Nil).
Balance as at April 1, 2019 78.78
11.1.4 No Right-of-Use Asset has been included in
Additions during the year -
the investment property as given above.
Disposals/ Adjustment/ -

Consolidated Financial Statements

Transfer 11.1.5 The best evidence of fair value is current
Balance as at March 31, 78.78 prices in an active market for similar
2020 properties.
Additions during the year - 11.1.6 The group has considered the fair value of
Disposals/ Adjustment/ - the freehold land amounting to `409.24
Transfer million as at March 31, 2021 (as at March 31,
Balance as at March 31, 78.78 2020 `255.80 million) based on the valuation
2021 carried out by independent valuer report
dated October 30, 2020.
Accumulated Depreciation Amount (`)
and Impairment 11.2 In respect of subsidiary, PMHBL,

Balance as at April 1, 2019 0.05 11.2.1 Assets pledged as security:- Nil (previous
Add: Depreciation Expense 0.01 year : Nil)
Less: Eliminated on Disposal/ - 11.2.2 There were no Income earned or expenditure
Adjustment/ Transfer incurred on the above Investment Property
Balance as at March 31, 0.06 other than land revenue tax of `0.00 million
2020 during the current year (Previous year `0.00
Add: Depreciation Expense 0.01 million) and depreciation mentioned above.
Less: Eliminated on Disposal/ - The fair value of the Property as per Valuation 493
Adjustment/ Transfer report dated 04-04-2019 issued by Mr. Feroz
Balance as at March 31, 0.07 N Raaj, Government Approved Valuer is
2021 `2.21 million.
 THE UNSTOPPABLE
ENERGY SOLDIERS
12 Other intangible assets
(` in million)
Technical Wind License
Right of
Particulars Software /Process Energy and Total
Way
Licenses Equipments Franchise
Balance at April 01, 2019
5,619.07 2,440.61 621.97 1,885.55 - 10,567.20
(Note No. 12.1)
Additions during the year 785.13 1,114.90 51.80 - 49.53 2,001.36
Disposal/adjustments (33.82) - - - - (33.82)
Foreign currency translation
118.34 - - - - 118.34
adjustment (Note No. 12.2)
Balance at March 31, 2020 6,488.72 3,555.51 673.77 1,885.55 49.53 12,653.08
Additions during the year 1,129.89 1,230.66 - 2.88 - 2,363.43
Disposal/adjustments (38.24) - - - - (38.24)
Foreign currency translation
(40.66) - - - - (40.66)
adjustment (Note No. 12.2)
Balance at March 31, 2021 7,539.71 4,786.17 673.77 1,888.43 49.53 14,937.61

Less: Accumulated
amortisation and impairment
Accumulated amortisation
Balance at April 01, 2019 3,011.33 - 374.80 409.99 - 3,796.12
Provision for the year 961.56 0.50 66.00 104.10 12.68 1,144.84
Disposal/adjustments (31.98) - - - - (31.98)
Foreign currency translation
98.73 - - - - 98.73
adjustment (Note No. 12.2)
Balance at March 31, 2020 4,039.64 0.50 440.80 514.09 12.68 5,007.71
Provision for the year 956.45 2.80 50.50 104.20 16.53 1,130.48
Disposal/adjustments (37.69) - - - - (37.69)
Foreign currency translation
(35.14) - - - - (35.14)
adjustment (Note No. 12.2)
Balance at March 31, 2021 4,923.26 3.30 491.30 618.29 29.21 6,065.36

494
Accumulated Impairment
Balance at April 01, 2019 2.64 - - - - 2.64
Provision for the year 1.36 - - - - 1.36
Disposal/adjustments (0.04) - - - - (0.04)
Balance at March 31, 2020 3.96 - - - - 3.96
Provision for the year 1.58 - - - - 1.58
Disposal/adjustments (1.78) - - - - (1.78)
Balance at March 31, 2021 3.76 - - - - 3.76
Carrying amount at March 31,
2,445.11 3,555.01 232.98 1,371.46 36.85 7,641.41
2020
Carrying amount at March 31,
2,612.68 4,782.87 182.48 1,270.14 20.32 8,868.49
2021
 ANNUAL REPORT
2020-21
12.1 Except for OVL, the Group has elected to 12.3 The Group holds a Right of Way for laying
continue with the carrying value of its other Pipeline between Mangalore and Bangalore
intangible assets, recognized as of April 1, via Hassan. The cost of acquiring the right
2015 (transition date) measured as per the has been capitalised as Intangible Assets. The
Previous GAAP and used that carrying value as right is an indefinite (perpetual) right with no
its deemed cost as on the transition date as per stipulation over the period of validity. Hence,
Para D7AA of Ind AS 101 ‘First –time Adoption the same is not amortised.
of Indian Accounting Standards’.
12.4 In respect of subsidiary HPCL, Includes
12.2 Group’s subsidiary OVL has determined `771.40 million (as at March 31, 2020: `771.40
its functional currency as US$. Above million) towards Right of Way representing
foreign exchange difference represents Company’s Share of Assets, jointly owned with
differences on account of translation of the other Companies.
consolidated financial statements of the ONGC
12.5 Additions to Other Intangible Assets during
Videsh Limited from US$ to Group’s
the year includes software amounting to `0.15
presentation currency “`”. Refer Note No. 3.21
million acquired under business combination.
and 5.1 (a).

Consolidated Financial Statements

(refer Note. No.4(l))

13 Intangible assets under development

(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
(i) Exploratory wells in progress (Note No. 13.1)
Cost or deemed cost
Opening balance 231,818.85 242,629.66
Expenditure during the year (Note No. 13.2.5) 43,113.40 50,843.70
Sale proceeds of Oil and Gas (net of levies) (44.71) (287.15)
Depreciation during the year (Note No. 43) 17,779.48 15,421.09
Total (A) 292,667.02 308,607.30
Less:
Transfer to Oil and Gas Assets 10,589.63 9,158.45
Wells written off during the year (Note No.13.2.3) 50,677.01 70,875.27
Effect of exchange differences (Note No. 13.2.7) 2,074.13 (3,245.27)
Total (B) 63,340.77 76,788.45
Sub-total (A-B) 229,326.25 231,818.85
Less: Accumulated Impairment 495
Opening Balance 37,797.37 24,724.31
Provided during the year 10,144.90 16,915.56
Write back during the year (6,372.75) (4,323.78)
Effect of exchange differences (Note No. 13.2.7) (149.57) 481.28
Total 41,419.95 37,797.37
Carrying amount of Exploratory wells in progress 187,906.30 194,021.48
(ii) Acquisition Cost
Cost or deemed cost
Opening balance 213,036.73 191,428.01
Addition during the year (Note No. 13.2.6) 3,296.95 5,127.15
Effect of exchange differences (Note No. 13.2.7) (5,304.17) 16,481.57
Total 211,029.51 213,036.73
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars As at As at
March 31, 2021 March 31, 2020
Less : Accumulated Impairment
Opening balance 28,058.09 17,729.96
Provided during the year (Note No. 43) (693.40) 8,010.51
Effect of exchange differences (Note No. 13.2.7) (732.51) 2,317.62
Total 26,632.18 28,058.09
Carrying amount of Acquisition Cost 184,397.33 184,978.64

(iii) Other intangible assets under development (Note No. 13.3)

Opening balance 967.58 484.07
Expenditure during the year 834.93 535.34
Capitalised during the year - (51.83)
Total 1,802.51 967.58
Carrying amount of Intangible assets under development 374,106.14 379,967.70

13.1 During the year 2004-05, the Company Subsea umbilical risers, flow lines, Subsea
had acquired, 90% Participating Interest production system, Central processing
in Exploration Block KG-DWN-98/2 from platform – living quarter utility platform and
Cairn Energy India Limited for a lump sum Onshore Terminal have been awarded during
consideration of `3,711.22 million which, 2018-19. Sixteen (16) Oil wells, Seven (7)
together with subsequent exploratory drilling Gas wells and Six (6) Water injector wells
costs of wells had been capitalized under were drilled upto March 31, 2021. Towards
exploratory wells in progress. During 2012- early monetization, it was planned to produce
13, the Company had acquired the remaining Gas from U-field utilizing Vashishta and S1
10% participating interest in the block from Project facilities. One Gas well-U3B was
Cairn Energy India Limited on actual past cost completed in the month of March 2020 and
basis for a consideration of `2,124.44 million. test production commenced on March 5,
Initial in-place reserves were established in 2020. In line with the Accounting Policy of the
this block and adhering to original PSC time Company, Oil and Gas assets were created
lines, a Declaration of commerciality (DOC) for the well U3B on establishment of proved
with a conceptual cluster development plan developed reserves during the year 2019-
was submitted on December 21, 2009 for 20. Commercial production from the well
Southern Discovery Area and on July 15, commenced on May 25, 2020. The cost of
2010 for Northern Discovery Area. Thereafter, development wells in progress, Capital work
in the revised DOC submitted in December, in progress and Oil & gas assets as at March
496 2013, Cluster-wise development of the Block 31, 2021 is `27,326.51 million (Previous year
had been envisaged by division of entire `23,567.70 million), `75,468.01 million
development area into three clusters. (Previous year `37,826.42 million) and
The DOC in respect of Cluster II had been `10,615.47 million (Previous year `10,487.02
reviewed by the Management Committee million) respectively under Cluster II.
(MC) of the block on September 25, 2014. FDP in respect of Cluster-I was approved for
Field Development Plan (FDP) for Cluster- development of Gas discoveries in E1 and
II was submitted on September 8, 2015 integrated development of Oil discoveries
which included cost of all exploratory wells in F1 field along with nominated field GS-29
drilled in the Contract Area and the same by the Management Committee in FY 2019-
had been approved by the Company Board 20. E1 is now proposed to be developed
on March 28, 2016 and by MC on March along with cluster II facilities in Revised FDP.
31, 2016. Investment decision has been Drilling of an Appraisal cum Development
approved by the Company. Contracts for Well GS29_8_A was commenced on March
 ANNUAL REPORT
2020-21
29, 2021 under F1. The cost of development charged off as Exploration Cost written off
wells in progress as at March 31, 2021 is based on assessment by Operator. As on
`370.67 million. 31.03.2021, the balance exploratory wells
in progress in respect of the said project
In respect of Cluster III, Directorate General amounting to `392.95 million (previous year
of Hydrocarbon (DGH) vide letter dated `1,307.03 million) is carried in the books
December 24, 2019 has extended the timeline and not provided for based on assessment
for submission of FDP by 25 months which by Operator. Oil production activities were
was further extended upto August 2022 vide under shutdown since December 2013 due
letter dated November 16, 2020. In line with to security situation in Block 5A South Sudan
the approval of Management Committee, and is in the process of resumption. During
one appraisal well was drilled during 2020-21 the year, an amount of `277.30 million has
and one appraisal well is under drilling as on been paid for extension of the Exploration &
March 31, 2021. Production sharing agreement (EPSA) for the
In view of the definite plan for development of block up to 2037.
all the clusters, the cost of exploratory wells 13.2.4 Acquisition cost relates to the cost for

Consolidated Financial Statements

in the block i.e. `53,323.75 million (Previous acquiring property or mineral rights of proved
year `52,998.53 million) has been carried or unproved oil and gas properties which are
over. currently under Exploration / Development
13.2 In respect of subsidiary OVL, stage; such cost will be transferred to Oil
13.2.1 The company has 60% Participating Interest and Gas Assets on commencement of
in Block XXIV, Syria. In view of deteriorating commercial production from the project
law and order situation in Syria, operations of or written off in case of relinquishment of
the project are temporarily suspended since exploration project.
April 29, 2012. In view of the same provision 13.2.5 Borrowing cost amounting to `254.95 million
had been made in respect of exploratory has been capitalised during the year ended
wells in progress. The impairment as at March 31, 2021 (for the year ended March
March 31, 2021 is `3,018.24 million (as at 31, 2020 `398.08 million) in Exploratory
March 31, 2020: `3,099.97 million) in respect wells in progress. The weighted average
of the project. capitalization rate on funds borrowed is
13.2.2 In respect of Block Farsi, Iran, the Company 2.13% per annum (during the year ended
in consortium with other partners entered March 31, 2020: 3.45% per annum).
into an Exploration Service Contract (ESC) 13.2.6 Borrowing cost amounting to `3,266.17
with National Iranian Oil Company (NIOC) million has been capitalised during the
on December 25, 2002. After exploratory year ended March 31, 2021 (for the year
drilling, FB area of the block proved to be ended March 31, 2020 `5,099.68 million)
a gas discovery and was later rechristened in Acquisition cost. The weighted average
as Farzad-B. NIOC announced the Date capitalization rate on funds borrowed is 497
of Commerciality for Farzad-B as August 2.13% per annum (during the year ended
18, 2008. However, the contractual March 31, 2020: 3.45% per annum).
arrangement with respect to development 13.2.7 Company has determined its functional
has not been finalized, so far. Impairment currency as US$. Above foreign exchange
has been made in respect of the Company’s difference represents differences on account
investment in exploration in the Farsi Block. of translation of the financial statements of the
The impairment as at March 31, 2021 ONGC Videsh Limited from US$ to Group’s
`2,505.48 million (as at March 31, 2020 presentation currency “`”. Refer Note No.
`2,573.32 million). 3.21 and 5.1 (a).
13.2.3 An amount of `516.92 million (previous year 13.3 In respect of subsidiary HPCL, other intangible
Nil) pertaining to Block 5A, South Sudan assets under development are related to
which was being carried in EWIP has been Technical/Process Licenses, Software, etc.
 THE UNSTOPPABLE
ENERGY SOLDIERS
14 Investments
(` in million)
As at As at
Particulars
March 31, 2021 March 31, 2020
14.1 Investment in Joint Ventures and Associates
(i) Associates 188,051.57 196,925.14
(ii) Joint Ventures 167,414.37 156,596.60
Sub-Total 355,465.94 353,521.74
14.2 Other Investments
(i) Investment in Other Equity Instruments (Note No.14.2.(i)) 155,655.44 128,070.12
(ii) Investment in securities (Note No.14.2.(ii)) 34,552.41 32,203.80
(iii) Investment in Compulsorily Convertible Preference Shares
372.06 307.48
(Note No.14.2.(iii))
Sub-Total 190,579.91 160,581.40
Total investments 546,045.85 514,103.14

14.1 Investment in Joint Ventures and Associates

(` in million)

Particulars As at March 31, 2021 As at March 31, 2020

No. No.
Amount Amount
(in million) (in million)
Investment in Equity instruments
(i) Associates (Note No. 14.1.11)
(a) Pawan Hans Limited 0.27 4,833.43 0.27 4,871.06
(Unquoted– Fully paid up)
(Face Value `10,000 per share) (Note No.
14.1.6)
(b) Petronet LNG Limited 187.50 14,758.63 187.50 13,976.55
(Quoted– Fully paid up)
(Face Value `10 per share)
(c) Rohini Heliport Limited - - - 0.05
(Unquoted– Fully paid up)***
(Face Value `10 per share) (Note No. 14.1.7)
498 (d) Petro Carabobo S.A 1.13 4,281.84 1.13 4,449.55
(Unquoted– Fully paid up)
(Face Value Bolivar 10 per share)
(e) Carabobo Ingenieria Y Construcciones, S.A - 0.31 - 0.32
(Unquoted– Fully paid up) ***
(Face Value Boliver 1 per share)
(f) Petrolera Indovenezolana SA 0.04 29,872.15 0.04 31,105.72
(Unquoted– Fully paid up)
(Face Value $ 4.65 per share)
(g) South East Asia Gas Pipeline Ltd 0.02 1,776.07 0.02 1,844.90
(Unquoted– Fully paid up)
(Face Value $ 1 per share)
 ANNUAL REPORT
2020-21

Particulars As at March 31, 2021 As at March 31, 2020

No. No.
Amount Amount
(in million) (in million)
(h) Tamba BV - 8,181.63 - 9,023.35
(Unquoted– Fully paid up) ***
(Face Value Euro 10 per share)
(i) JSC Vankorneft, Russia 3.09 104,915.26 3.09 112,329.02
(Unquoted– Fully paid up)
(Face Value Rouble 1 per share)
(j) Moz LNG1 Holding Company Limited 39.50 2,935.12 0.70 67.72
(Unquoted– Fully paid up)
(Face Value $ 1 per share)
(k) Falcon Oil & Gas BV - 19,822.55 - 22,119.75
(Unquoted– Fully paid up) ***
(Face Value $ 1 per share)

Consolidated Financial Statements

(l) GSPL India Transco Ltd 64.02 529.42 54.12 501.88
(Unquoted – Fully paid up)
(Face Value `10 per share)
(m) GSPL India Gasnet Ltd 175.12 1,706.00 103.62 972.93
(Unquoted – Fully paid up)
(Face Value `10 per share)
Less: Aggregate amount of impairment (5,560.84) (4,337.66)
Total Investments in Associates 188,051.57 196,925.14
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
No. (in million) Amount No. (in million) Amount
(ii) Joint Ventures (Refer Note 14.1.12)
(a) Mangalore SEZ Limited 13.48 32.11 13.48 118.09
(Unquoted – Fully paid up)
(Face Value `10 per share)
(b) ONGC Petro Additions Limited 997.98 63,665.75 997.98 61,148.99
(Unquoted – Fully paid up)
(Face Value `10 per share) (Note
No.14.1.4 & 14.1.5)
(c) ONGC Teri Biotech Limited 12.50 356.26 0.02 312.19
499
(Unquoted– Fully paid up)
(Face Value `10 per share)(Note No.
14.1.2)
(d) ONGC Tripura Power Company Limited 560.00 7,062.32 560.00 6,389.02
(Unquoted – Fully paid up)
(Face Value `10 per share)
(e) Dahej SEZ Limited 23.02 1,094.75 23.02 930.23
(Unquoted– Fully paid up)
(Face Value `10 per share)
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars As at March 31, 2021 As at March 31, 2020

No. (in million) Amount No. (in million) Amount
(f) Indradhanush Gas Grid Limited 61.00 579.20 12.00 85.13
(Unquoted– Fully paid up)
(Face Value `10 per share) (Note No.
14.1.3)
(g) Shell MRPL Aviation Fuels and Services 15.00 249.86 15.00 287.87
Limited
(Unquoted–Fully paid up)
(Face Value `10 per share)
(h) ONGC Mittal Energy Limited 24.99 1,836.52 24.99 1,886.25
(Unquoted– Fully paid up)
(Face Value $ 1 per share)
(i) Mansarovar Energy Colombia Limited 0.01 13,063.43 0.01 15,945.40
(Unquoted– Fully paid up)
(Face Value $ 1 per share)
(j) Himalaya Energy Syria BV 0.05 216.40 0.05 207.73
(Unquoted– Fully paid up)
(Face Value Euro 1 per share)
(k) HPCL-Mittal Energy Limited 3,939.56 51,294.21 3,939.56 48,491.59
(Unquoted– Fully paid up)
(Face Value `10 per share)
(l) Hindustan Colas Pvt. Ltd. 4.73 2,124.99 4.73 1,948.10
(Unquoted– Fully paid up)
(Face Value `10 per share)
(m) HPCL Rajasthan Refinery Ltd. 1,798.24 17,272.51 1,298.74 12,897.21
(Unquoted– Fully paid up)
(Face Value `10 per share) (Note
No.14.1.9)
(n) Petronet India Ltd. 16.00 4.29 16.00 4.19
(Unquoted– Fully paid up)
(Face Value `0.10 per share)
(Note No. 14.1.10)
(o) South Asia LPG Co. Pvt. Ltd. 50.00 1,103.37 50.00 1,207.45
500 (Unquoted– Fully paid up)
(Face Value `10 per share)
(p) Bhagyanagar Gas Ltd. 43.65 1,746.17 43.65 1,503.39
(Unquoted– Fully paid up)
(Face Value `10 per share)
(q) Aavantika Gas Ltd. 29.56 1,371.25 29.56 1,174.99
(Unquoted– Fully paid up)
(Face Value `10 per share)
(r) HPCL Shapoorji Energy Pvt. Ltd. - - 175.00 1,729.30
(Unquoted– Fully paid up)
(Face Value `10 per share)
 ANNUAL REPORT
2020-21

Particulars As at March 31, 2021 As at March 31, 2020

No. (in million) Amount No. (in million) Amount
(s) Mumbai Aviation Fuel Farm Facility Pvt. 48.29 874.43 48.29 870.52
Ltd.
(Unquoted– Fully paid up)
(Face Value `10 per share)
(t) Ratnagiri Refinery & Petrochemicals 50.00 319.14 50.00 362.76
Limited.
(Unquoted– Fully paid up)
(Face Value `10 per share)
(u) Godavari Gas Pvt. Ltd. 16.07 137.01 16.07 149.32
(Unquoted– Fully paid up)
(Face Value `10 per share)
(v) HPOIL Gas Pvt. Ltd. 72.50 699.38 60.00 583.64

Consolidated Financial Statements

(Unquoted– Fully paid up)
(Face Value `10 per share)
(w) IHB Pvt. Ltd. 414.50 4,147.54 26.25 249.49
(Unquoted– Fully paid up)
(Face Value `10 per share)
(x) Sudd Petroleum Operating - - - -
Company***
(Unquoted– Fully paid up)
(Face Value $ 1 per share)
Less: Aggregate amount of impairment (1,836.52) (1,886.25)
Total Investment in Joint ventures 167,414.37 156,596.60
Total Investment in Joint Ventures and 355,465.94 353,521.74
Associates

*** Number of shares

Particulars As at As at
March 31, 2021 March 31, 2020
No of share No of share
Rohini Heliport Limited 4,899 4,899
501
Tamba B.V. 1,620 1,620
Carabobo Ingeniería y Construcciones, S.A. 275 275
Falcon Oil & Gas BV 40 40
Sudd Petroleum Operating Company 241.25 241.25

14.1.1 The Company is restrained from diluting the investment in the respective companies till the sponsored
loans are fully repaid as per the covenants in the respective loan agreements of the companies.
14.1.2 During the year, the Company had received 12,470,010 nos. equity shares from ONGC Teri Biotech
Limited as bonus shares.
14.1.3 During the year, the Company has subscribed additional 49,000,000 nos. equity share of Indradhanush
Gas Grid Limited (IGGL), a Joint Venture Company having face value of `10 per share at par value.
During the previous year 2019-20, The Company had subscribed additional 7,000,000 nos. equity shares
of Indradhanush Gas Grid Ltd.(IGGL).
 THE UNSTOPPABLE
ENERGY SOLDIERS
14.1.4 During the year, the Company had subscribed to additional 893,240,000 nos. Share Warrants of ONGC
Petro additions Limited @ `9.75 per share warrant, entitling the Company to exchange each warrant with
an Equity Share of Face Value of `10/- after a balance payment of `0.25 for each share warrant within
thirty six months of subscription of the Share warrants issued.
The position of share warrants subscribed by the Company in share warrants issued by OPaL is as under:

Value of share Subscribed amount Execution /

Share warrants No of warrants
warrants paid by the Company Conversion date
issued on subscribed
(` in million) (` in million) of Warrants

August 25, 2015 1,922,000,000 19,220.00 18,739.50 August 24, 2021

December 13, December 12,

636,000,000 6,360.00 6,201.00
2018 2021

April 07, 2020 893,240,000 8,932.40 8,709.09 April 06, 2023

14.1.5 The Company entered into an arrangement million) includes, `62,308.05 million (As at
for backstopping support towards repayment March 31, 2020 `62,308.05 million) towards
of principal and coupon of Compulsory the fair value of Financial Liability against
Convertible Debentures (CCDs) amounting to these CCDs and `70.50 million (As at March
`77,780.00 million (Previous year `77,780.00 31, 2020 `53.90 million) towards the fair value
million) issued by the Joint Venture ONGC of guarantee fee on financial guarantee given
Petro additions Limited (OPaL) in three without any consideration for OPaL (Also refer
tranches. The Company is continuing the Note No. 64).
same back stopping support. The outstanding
interest accrued as at March 31, 2021 is 14.1.6 During the year 2018-19, the Company has
`1,926.75 million (Previous year `2,722.77 exercised option to exit Pawan Hans Limited
million). The first tranche and third tranche of by offloading entire 49% stake holdings of the
CCDs amounting to `56,150.00 million and Company as a preferred option, along with the
`4,920 million have been further extended for strategic sale proposal being pursued by the
a period of 18 months and are due for maturity Government of India. As at March 31, 2021,
in July 2022 and September 2022 respectively, the proposed strategic sale transaction is
while the second tranche of CCD amounting yet to be consummated as the buyer has not
to `16,710 million will be due for maturity in been identified. In view of the uncertainty in the
November, 2021. completion of the transaction, the investment
502 Based on opinion of Expert Advisory in Pawan Hans Limited has not been
Committee (EAC) of the Institute of Chartered classified as Non-current Asset Held for Sale
Accountants of India, as stated in Note No. and accordingly the Company continues to
64.1.1, the Company has recognized a classify Pawan Hans Limited as an Associate
financial liability at fair value for backstopping Company and carry the investment at Cost.
support towards repayment of principal and a
14.1.7 During the previous year 2019-20, the
financial guarantee obligation towards coupon
Company had subscribed 4,899 nos. equity
amount with a corresponding recognition of
shares of Rohini Heliport Limited having
Deemed Investment in OPaL.
face value of `10 per share for an aggregate
The Deemed Investment amount of `62,378.55 consideration of `0.05 million, classified as
million (As at March 31, 2020 `62,361.96 Associate Company.
 ANNUAL REPORT
2020-21
14.1.8 Movement of Impairment in value of equity from US$ to Group’s presentation currency
accounted joint venture “`”. Refer Note No. 3.21 and 5.1 (a).
(` in million)
In respect of Subsidiary HPCL,
Particulars Year Year
ended ended 14.1.9 As per the guidelines issued by Department
March 31, March 31, of Public Enterprises (DPE) in August 2005,
2021 2020 the Board of Directors of Navratna Public
Sector Enterprises (PSEs) can invest in joint
Balance at 6,223.91 1,729.56 ventures and wholly owned subsidiaries
beginning of the subject to an overall ceiling of 30% of the
year net worth of the PSE. The Corporation has
requested Ministry of Petroleum & Natural
Recognised 1,351.62 4,337.66
Gas (MoP&NG) to confirm its understanding
during the year
that for calculating this ceiling limit, the
Effect of (178.17) 156.69 amount of investments specifically approved
exchange by Government of India (i.e. investment in

Consolidated Financial Statements

differences (Note HPCL Mittal Energy Ltd (HMEL) and HPCL
No. 14.1.8.1) Rajasthan Refinery Limited (HRRL) ) are to
be excluded. The Corporation has calculated
Balance at end 7,397.36 6,223.91 the limit of 30% investment in joint ventures
of the year and wholly owned subsidiaries, by excluding
these investments. As per financial position
14.1.8.1 Group’s subsidiary ONGC Videsh Limited as on 31st March 2021, the investments in
has determined its functional currency as joint ventures and wholly owned subsidiaries
US$. Above foreign exchange difference are well within the said 30% limit.
represents differences on account of
translation of the consolidated financial 14.1.10 Petronet India Ltd. is in the process of
statements of the ONGC Videsh Limited voluntary winding up w.e.f. August 30, 2018.
14.1.11 Details of Associates

Proportion of ownership interest/

Place of voting rights held by the
incorporation and Company
Name of associate Principal activity
principal place of
business As at March 31, As at March 31,
2021 2020
(i) Pawan Hans Helicopter services India 49.00% 49.00%
Limited
503
(ii) Petronet LNG Liquefied Natural India 12.50% 12.50%
Limited Gas supply
(iii) Rohini Heliport Helicopter services India 49.00% 49.00%
Limited
(iv) Caraboto Service provider Venezuela 37.93% 37.93%
Ingenieria Y
construcciones,
S.A
 THE UNSTOPPABLE
ENERGY SOLDIERS

Proportion of ownership interest/

Place of voting rights held by the
incorporation and Company
Name of associate Principal activity
principal place of
business As at March 31, As at March 31,
2021 2020
(v) Petrolera Exploration and Venezuela 40.00% 40.00%
Indovenezolana Production of
S.A. hydrocarbons

(vi) South- East Asia Exploration and Incorporated in Hong 8.35% 8.35%
Gas Pipeline Production of Kong, operations in
Company hydrocarbons Myanmar
Limited

(vii) Tamba BV Equipment Lease Incorporated in 27.00% 27.00%

Netherland for BC-10
Project, Brazil

(viii) Petro Carabobo Exploration and Venezuela 11.00% 11.00%

S.A. Production of
hydrocarbons

(ix) JSC Vankorneft Exploration and Russia 26.00% 26.00%

Production of
hydrocarbons

(x) Moz LNG Holding company for Abu Dhabi 16.00% 16.00%
I Holding entities undertaking
Company Ltd. Marketing and
shipping of liquified
natural gas

(xi) GSPL India Design, construct, India 11.00% 11.00%

Transco Ltd develop and operate
(through HPCL) gas pipeline

504 (xii) GSPL India Design, construct, India 11.00% 11.00%

Gasnet Ltd. develop and operate
(through HPCL) gas pipeline

(xiii) Falcon Oil & Gas Exploration and Incorporated 40.00% 40.00%
BV Production of in Netherlands,
hydrocarbons operations in Abu
Dhabi
 ANNUAL REPORT
2020-21
14.1.12 Details and financial information of Joint Ventures

Proportion of
Place of ownership interest/
incorporation voting rights held by
Name of joint venture Principal activity and principal the Company
place of As at As at
business March March
31, 2021 31, 2020
(i) Mangalore SEZ Limited Special Economic Zone India 26.77% 26.86%
(ii) Sudd Petroleum Exploration and Production of Incorporated in 24.13% 24.13%
Operating Company hydrocarbons Mauritius having
operations in
South Sudan
(iii) ONGC Petro Additions Petrochemicals India 49.36% 49.36%

Consolidated Financial Statements

Limited
(iv) ONGC Teri Biotech Bioremediation India 49.98% 49.98%
Limited
(v) ONGC Tripura Power Power Generation India 50.00% 50.00%
Company Limited
(vi) Dahej SEZ Limited Special Economic Zone India 50.00% 50.00%
(vii) Indradhanush Gas Grid Pipeline India 20.00% 20.00%
Limited (Note No. 14.1.3)
(viii) Shell MRPL Aviation Fuels Trading of aviation fuels India 50.00% 50.00%
and Services Limited
(ix) ONGC Mittal Energy Exploration and Production of Incorporated in 49.98% 49.98%
Limited hydrocarbons Cyprus having
operations in
Syria and Nigeria
(x) Mansarovar Energy Exploration and Production of Colombia 50% 50%
Colombia Limited hydrocarbons
(xi) Himalaya Energy Syria BV Exploration and Production of Incorporated in 50% 50%
hydrocarbons The Netherlands,
having
operations in 505
Syria
(xii) HPCL Rajasthan Refinery Refinery India 74.00% 74.00%
Ltd. (through HPCL)
(xiii) HPCL Mittal Energy Ltd. Refining of crude oil and India 48.99% 48.99%
(through HPCL) manufacturing of petroleum
products.
(xiv) Hindustan Colas Pvt. Ltd. Manufacture and marketing of India 50.00% 50.00%
(through HPCL) Bitumen Emulsions & Modified
Bitumen.
 THE UNSTOPPABLE
ENERGY SOLDIERS

Proportion of
Place of ownership interest/
incorporation voting rights held by
Name of joint venture Principal activity and principal the Company
place of As at As at
business March March
31, 2021 31, 2020
(xv) South Asia LPG Co. Storage of LPG in underground India 50.00% 50.00%
Private Ltd. (through cavern and associated
HPCL) receiving and dispatch facilities
at Visakhapatnam.
(xvi) Bhagyanagar Gas Ltd. Distribution and marketing of India 48.73% 24.99%
(through HPCL) CNG and Auto LPG in the state
of Andhra Pradesh/ Telangana
(xvii) Godavari Gas Pvt Ltd. Distribution and marketing of India 26.00% 26.00%
(through HPCL) CNG in East Godavari and
West Godavari Districts of
Andhra Pradesh
(xviii) Petronet India Ltd. To act as nodal agency for India 16.00% 16.00%
(through HPCL) (refer to developing identified and
note 14.1.10) prioritized petroleum product
pipelines in the country. The
company is in the process of
closure
(xix) Aavantika Gas Ltd. Distribution and marketing of India 49.99% 49.99%
(through HPCL) CNG in the state of Madhya
Pradesh.
(xx) Ratnagiri Refinery & To set up a refinery and India 25.00% 25.00%
Petrochemicals Ltd. petrochemical complex of 60
(through HPCL) MMTPA (Approx.) along the
west coast of India in the State
of Maharashtra
(xxi) Mumbai Aviation Fuel To design, develop, construct India 25.00% 25.00%
Farm Facility Pvt Ltd. and operate the aviation fuel
(through HPCL) facility at Chhatrapati Shivaji
506 International Airport, Mumbai
(xxii) HPOIL Gas Pvt Ltd To develop City Gas Distribution India 50.00% 50.00%
(through HPCL) network in Ambala and
Kurukshetra in the state of
Haryana and Kolhapur in the
state of Maharashtra.
(xxiii) IHB Pvt Ltd (through To set-up LPG pipeline between India 25.00% 25.00%
HPCL) Kandla-Gorakhpur
 ANNUAL REPORT
2020-21
a) Summarized financial information of Group’s Joint Ventures:
Summarized financial information in respect of each of the Group’s joint venture is set out below.
The summarized financial information below represents amounts shown in the joint venture’s
financial statements prepared in accordance with Ind ASs adjusted by the Group for equity
accounting purpose.
(` in million)

MSEZ OPaL IGGL

Particulars As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March
2021 2020 2021 2020 2021 31, 2020
Non-current assets 14,441.74 14,671.76 285,242.72 290,096.52 3,105.24 194.19
Current assets 1,850.92 2,303.46 21,939.71 23,660.57 3,334.20 341.12

Consolidated Financial Statements

Non-current liabilities 15,173.84 15,091.65 162,451.32 192,092.20 1,927.49 12.21
Current liabilities 998.87 1,443.98 94,050.16 73,947.09 1,615.93 97.43

The above amounts of assets and liabilities includes the following:

Cash and cash equivalents 25.23 53.15 149.45 168.25 2,906.26 136.61
Current financials liabilities
(Excluding trade payables 477.44 806.29 85,323.34 65,577.56 1,492.97 72.44
and provisions)
Non-current financials
liabilities (Excluding trade 5,808.20 5,586.22 162,451.32 191,518.42 5.85 7.90
payables and provisions)

507

ONGC holds the largest share of hydrocarbon acreages in India

 THE UNSTOPPABLE
ENERGY SOLDIERS
(` in million)
MSEZ OPaL IGGL
Year Year Year Year Year Year
Particulars Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Revenue 1,651.24 1,740.65 114,859.85 101,828.69 - -
Profit or (loss) from continuing (320.50) (316.34) (7,977.76) (20,896.82) 20.35 (53.10)
operations
Post-tax profit (loss) from - - - - - -
discontinued operations
Other comprehensive income 0.86 (0.62) 12.13 (20.39) - -
Total comprehensive income (319.64) (316.96) (7,965.63) (20,917.21) 20.35 (53.10)
The above profit (loss) for the year include the following:
Depreciation and amortisation 361.27 439.10 12,951.10 12,453.77 - 5.80
Interest income 15.20 14.33 30.52 44.76 31.21 16.79
Interest expense 449.15 506.74 16,551.68 20,575.36 - 1.57
Income tax expense or income 107.19 17.72 (321.13) (9,659.89) 7.84 (18.66)

Reconciliation of the above summarized financial information to the carrying amount of the interest in
JVs recognized in the consolidated financial statements:
(` in million)
MSEZ OPaL IGGL
Particulars As at As at As at As at As at As at
March 31, March March 31, March 31, March March
2021 31, 2020 2021 2020 31, 2021 31, 2020
Net assets of the joint venture 119.95 439.59 50,680.95 47,717.80 2,896.02 425.67
Equity Portion of Compulsorily - - (79,397.63) (73,628.74) - -
convertible debentures
Net assets of the joint venture 119.95 439.59 (28,716.68) (25,910.94) 2,896.02 425.67
attributable to group
Proportion of the Group’s 26.77% 26.86% 49.36% 49.36% 20.00% 20.00%
ownership interest in JVs (%)
508 Proportion of the Group’s 32.11 118.09 (14,173.92) (12,789.07) 579.20 85.13
ownership interest in JVs (INR)
Add: Additional subscription of - - 17,040.89 12,630.41 - -
share warrant
Add: Deemed Investment (Note - - 62,378.55 62,361.96 - -
No.64)
Less: Unrealised profit - - (1,579.77) (1,054.31) - -
Group’s share in net assets of the 32.11 118.09 63,665.75 61,148.99 579.20 85.13
joint venture
Carrying amount of the Group’s 32.11 118.09 63,665.75 61,148.99 579.20 85.13
interest in JVs
 ANNUAL REPORT
2020-21
(` in million)

DSL OTPC OTBL

Particulars As at As at As at As at As at As at
March 31, March March 31, March 31, March March
2021 31, 2020 2021 2020 31, 2021 31, 2020
Non-current assets 10,796.34 6,203.99 27,149.01 28,786.77 16.74 23.29
current assets 1,334.39 3,110.43 7,109.41 5,281.96 768.53 655.26
Non-current liabilities 8,980.75 6,752.39 15,552.11 17,772.55 1.93 1.62
Current liabilities 960.49 701.57 4,581.68 3,518.14 70.54 52.30
The above amounts of assets and liabilities includes the following:
Cash and cash equivalents (1.36) 23.30 591.86 45.78 0.31 5.45

Consolidated Financial Statements

Current financials liabilities 554.45 484.19 4,264.58 2,967.77 - -
(Excluding trade payables and
provisions)
Non-current financials liabilities - - 14,527.67 16,693.94 - -
(Excluding trade payables and
provisions)

(` in million)

DSL OTPC OTBL

Year Year Year Year Year Year
Particulars Ended Ended Ended Ended Ended Ended
March March March March 31, March March
31, 2021 31, 2020 31, 2021 2020 31, 2021 31, 2020
Revenue 623.77 649.44 16,455.72 12,483.33 270.16 223.99
Profit or (loss) from continuing 359.04 461.06 2,241.47 704.88 88.19 75.10
operations
Post-tax profit (loss) from discontinued - - - - - -
operations
509
Other comprehensive income - - 1.12 (0.87) (0.02) (0.14)
Total comprehensive income 359.04 461.06 2,242.59 704.01 88.17 74.96
The above profit (loss) for the year include the following:
Depreciation and amortisation 133.71 168.35 1,964.90 1,967.35 0.40 0.53
Interest income 65.50 196.08 263.74 177.84 37.75 37.67
Interest expense 50.62 47.12 1,421.84 1,595.24 - -
Income tax expense or income 14.90 70.99 441.30 317.41 30.11 26.82
 THE UNSTOPPABLE
ENERGY SOLDIERS
Reconciliation of the above summarised financial information to the carrying amount of the interest in
JVs recognized in the consolidated financial statements: (` in million)
DSL OTPC OTBL
Particulars As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Net assets of the joint venture 2,189.49 1,860.46 14,124.63 12,778.04 712.80 624.63
Proportion of the Group’s 50.00% 50.00% 50.00% 50.00% 49.98% 49.98%
ownership interest in JVs (%)
Proportion of the Group’s 1,094.75 930.23 7,062.32 6,389.02 356.26 312.19
ownership interest in JVs
(INR)
Group’s share in net assets 1,094.75 930.23 7,062.32 6,389.02 356.26 312.19
of the joint venture
Carrying amount of the 1,094.75 930.23 7,062.32 6,389.02 356.26 312.19
Group’s interest in JVs

b) Summarized financial information of Group’s associates:

Summarized financial information in respect of each of the Group’s associates is set out below. The
summarized financial information below represents amounts shown in the associates’ financial statements
prepared in accordance with Ind ASs adjusted by the Group for equity accounting purpose.
(` in million)
PLL PHL RHL
Particulars As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Non-current assets 109,281.40 117,739.44 8,190.18 7,965.04 - -
Current assets 81,618.90 71,471.86 5,070.94 5,316.15 0.24 0.11
Non-current liabilities 52,087.00 53,838.01 1,285.15 1,565.95 - -
Current liabilities 20,744.30 23,560.92 2,111.83 1,774.30 0.32 0.01

(` in million)
PLL PHL RHL
510 Year Year Year Year Year Year
Particulars Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Revenue 260,229.00 355,619.96 3,736.34 3,483.02 - -
Profit or (loss) from 29,392.30 27,609.13 (57.03) (545.39) (0.09) -
continuing operations
Post-tax profit (loss) from - - (48.36) - - -
discontinued operations
Other comprehensive income (32.50) (0.80) (40.05) - - -
Total comprehensive income 29,359.80 27,608.33 (145.44) (545.39) (0.09) -
 ANNUAL REPORT
2020-21
Reconciliation of the above summarised financial information to the carrying amount of the interest in
associates recognized in the consolidated financial statements: (` in million)
PLL PHL RHL
Particulars As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Net assets of the associates 118,069.00 111,812.37 9,864.14 9,940.94 (0.08) 0.10
Proportion of the Group’s 12.50% 12.50% 49.00% 49.00% 49.00% 49.00%
ownership interest in
associates (%)
Proportion of the Group’s 14,758.63 13,976.55 4,833.43 4,871.06 (0.04) 0.05
ownership interest in
associates (INR)
Add: Adjustment for - - - - 0.04 -

Consolidated Financial Statements

restriction of loss
Group’s share in net assets 14,758.63 13,976.55 4,833.43 4,871.06 - 0.05
of the associates
Carrying amount of the 14,758.63 13,976.55 4,833.43 4,871.06 - 0.05
Group’s interest in associates

511

As part of National Seismic Programme, ONGC completed data

acquisition of 41,137.01 LKM (97.46%) by the end of FY’21
 512
c) Details of financial position of subsidiary company, MRPL’s Joint ventures:

ENERGY SOLDIERS
THE UNSTOPPABLE
(` in million)
Profit or Profit or
Non-Cur- Non-Cur- Other Com- Total Com-
Particulars (As at March 31, Current Current Total Rev- Loss from Loss from
rent rent Lia- prehensive prehensive
2021) Assets Liabilities enue continuing discontinued
Assets bilities Income Income
operations operations
Shell MRPL Aviation Fuels
1,984.11 91.79 1,563.43 5.87 2,604.95 8.00 - 0.03 8.03
and Services Limited
Total 1,984.11 91.79 1,563.43 5.87 2,604.95 8.00 - 0.03 8.03

Profit or Profit or
Non-Cur- Non-Cur- Other Com- Total Com-
Particulars (As at March 31, Current Current Total Rev- Loss from Loss from
rent rent Lia- prehensive prehensive
2020) Assets Liabilities enue continuing discontinued
Assets bilities Income Income
operations operations
Shell MRPL Aviation Fuels
2,405.41 98.63 1,921.35 9.12 8,307.54 15.19 - (0.91) 14.28
and Services Limited
Total 2,405.41 98.63 1,921.35 9.12 8,307.54 15.19 - (0.91) 14.28

d) Additional Financial information related to Joint venture are as under:

(` in million)
Cash and Current Non-Current Depreciation Income Tax
Interest Interest
Particulars (As at March 31, 2021) Cash Financial Financial and Expense or
Income Expense
Equivalents Liabilities Liabilities Amortisation Income
Shell MRPL Aviation Fuels and Services
87.95 1,444.32 5.59 15.02 76.18 27.00 4.48
Limited
Total 87.95 1,444.32 5.59 15.02 76.18 27.00 4.48

Cash and Current Non-Current Depreciation Income Tax

Interest Interest
Particulars (As at March 31, 2020) Cash Financial Financial and Expense or
Income Expense
Equivalents Liabilities Liabilities Amortisation Income
Shell MRPL Aviation Fuels and Services
533.12 1,836.11 9.12 15.31 41.50 12.04 1.60
Limited
Total 533.12 1,836.11 9.12 15.31 41.50 12.04 1.60
 ANNUAL REPORT
2020-21
e) Details of financial position of subsidiary company OVL’s Joint ventures and associates:
(` in million)
(i) Mansarovar Energy Colombia Limited As at March As at March
31, 2021 31, 2020
Non-current assets 17,932.91 27,888.57
Current assets 9,739.32 9,038.65
Non-current liabilities 7,518.72 7,681.82
Current liabilities 3,924.35 3,778.58
The above amounts of assets and liabilities includes the following:
Cash and cash equivalents 4,811.16 4,178.25
Current financials liabilities (Excluding trade 2,002.93 1,693.46
payables and provisions)

Consolidated Financial Statements

Non-current financials liabilities (Excluding trade 7,036.47 7,280.80
payables and provisions)

Mansarovar Energy Colombia Limited For the year ended For the year ended
March 31, 2021 March 31, 2020
Revenue 11,979.05 18,982.02
Profit or loss from continuing operations (2,152.96) 1,292.76
Other comprehensive income for the year - -
Total comprehensive income for the year (2,152.96) 1,292.76
Dividends received from the joint venture during 1,411.02 4,786.76
the year
The above profit (loss) for the year include the following:
Depreciation and amortisation 6,586.03 7,420.24
Interest income 620.89 666.94
Interest expense 4.21 6.52
Income tax expense (income) (2,205.62) (316.90)

(ii) JSC Vankorneft As at March As at March

513
31, 2021 31, 2020

Non-current assets 131,526.17 185,943.15

Current assets 100,722.96 103,294.60

Non-current liabilities 26,226.86 29,442.67

Current liabilities 39,813.27 29,319.88

 THE UNSTOPPABLE
ENERGY SOLDIERS

The above amounts of assets and liabilities includes the following:

Cash and cash equivalents 0.43 0.37

Current financials liabilities (Excluding trade 39,175.29 15,739.44

payables and provisions)

Non-current financials liabilities (Excluding trade 6,317.26 29,442.67

payables and provisions)

JSC Vankorneft For the year ended For the year ended
March 31, 2021 March 31, 2020

Revenue 288,104.51 386,151.77

Profit or loss from continuing operations 25,238.02 50,852.38

Other comprehensive income for the year - -

Total comprehensive income for the year 25,238.02 50,852.38

Dividends received from the associate during the 15,927.75 3,956.60

year

The above profit (loss) for the year include the following:

Depreciation and amortisation 48,265.11 11,080.68

Interest income 3,785.16 -

Interest expense (342.15) (342.15)

Income tax expense (income) 10,711.57 12,515.63

(iii) Petrolera Indovenezolana SA As at March As at March

31, 2021 31, 2020
Non-current assets 29,648.75 31,801.35
Current assets 258,987.36 266,115.06
Non-current liabilities 3,341.93 3,468.45
514 Current liabilities 203,610.96 210,892.52
The above amounts of assets and liabilities includes the following:
Cash and cash equivalents 24.31 167.99
Current financials liabilities (Excluding trade 23,636.53 26,262.02
payables and provisions)
Non-current financials liabilities (Excluding trade 3,341.93 3,468.45
payables and provisions)
 ANNUAL REPORT
2020-21

Petrolera Indovenezolana SA For the year ended For the year ended
March 31, 2021 March 31, 2020
Revenue 1,478.09 8,494.76
Profit or loss from continuing operations 334.15 (583.92)
Other comprehensive income for the year - -
Total comprehensive income for the year 334.15 (583.92)
Dividends received from the associate during the - -
year
The above profit (loss) for the year include the following:
Depreciation and amortisation 714.16 1,869.45
Interest income - 0.01
Interest expense - -

Consolidated Financial Statements

Income tax expense (income) 836.28 1,286.75
(iv) Tamba BV As at March As at March
31, 2021 31, 2020
Non-current assets 1,063.84 16,925.11
Current assets 14,115.74 9,219.20
Non-current liabilities - 4,850.65
Current liabilities 800.01 4,227.79
The above amounts of assets and liabilities includes the following:
Cash and cash equivalents 1,074.72 3,296.06
Current financials liabilities (Excluding trade - 2,085.44
payables and provisions)
Non-current financials liabilities (Excluding trade - 4,850.65
payables and provisions)
Tamba BV For the year ended For the year ended
March 31, 2021 March 31, 2020
Revenue 1,871.01 3,464.77
Profit or loss from continuing operations 1,453.28 3,654.53
Other comprehensive income for the year - - 515
Total comprehensive income for the year 1,453.28 3,654.53
Dividends received from the associate during the 3,713.21 5,673.20
year
The above profit (loss) for the year include the following:
Depreciation and amortisation - -
Interest income 781.56 3,464.77
Interest expense 404.89 653.84
Income tax expense (income) 769.53 859.49
 THE UNSTOPPABLE
ENERGY SOLDIERS
f) Details of financial position of subsidiary company HPCL’s Joint ventures:

(` in million)
HMEL
Particulars
31.03.2021 31.03.2020
Assets:
Non-Current Assets 447,521.80 397,908.80
Current Assets
Cash and Cash equivalents 9,021.00 16,813.00
Other Current Assets (excluding cash and 81,686.90 73,299.30
cash equivalents)
Total (A) 538,229.70 488,021.10
Liabilities:
Non-Current Liabilities
Non-Current Financial Liabilities (excluding 321,506.00 279,907.00
Trade / Other Payables and Provisions)
Other Non-Current Liabilities 35,589.80 29,118.70
Current Liabilities
Current Financial Liabilities (excluding Trade / 20,490.00 22,921.00
Other Payables and Provisions)
Other Current Liabilities 55,946.00 57,096.60
Total (B) 433,531.80 389,043.30
Net Assets included in Financial Statement of 104,697.90 98,977.70
Joint Venture / Associate
Ownership Interest 48.99% 48.99%
Carrying amount of Interest in Joint Venture/ 51,294.20 48,491.60
Associate
Quoted Market Value of Shares N.A. N.A.

Other Information: 2020-21 2019-20

Revenue 517,304.80 580,052.90
516 Interest Income 515.50 540.00
Interest Expenses 9,182.60 13,051.00
Depreciation 10,271.70 11,316.70
Income tax expenses (612.70) (3,619.00)
Profit / Loss for the year 3,182.90 (1,482.90)
Other Comprehensive Income (Net of Tax) 2,538.30 (3,478.10)
Total Comprehensive Income for the year 5,721.20 (4,961.00)
 ANNUAL REPORT
2020-21
Details of all individually immaterial equity accounted investees of subsidiary company HPCL:

Other immaterial Joint Other immaterial Associates

Ventures
Particulars
As at March As at March As at March As at March
31, 2021 31, 2020 31, 2021 31, 2020
Carrying amount of Investment in equity 33,188.80 27,456.10 2,235.40 1,474.80
accounted investees
Group’s Share of Profit or Loss from 1,428.30 1,891.10 (53.80) (87.20)
Continuing Operations
Group’s share in other comprehensive 0.10 (0.70) 0.40 (0.50)
income
Group’s share in Total Comprehensive 1,428.40 1,890.40 (53.40) (87.70)
Income

Consolidated Financial Statements

14.2 Other Investments

(i) Investment in other Equity Instruments

(` in million)

Particulars As at March 31, 2021 As at March 31, 2020

No. (in No. (in
Amount Amount
million) million)
A. Financial assets measured at FVTOCI
(a) Indian Oil Corporation Limited 1,337.22 122,823.22 1,337.22 109,183.62
(Quoted – Fully paid up)
(Face Value `10 per share)
(b) GAIL (India) Limited 217.81 29,513.38 217.81 16,673.43
(Quoted – Fully paid up)
(Face Value `10 per share)
(c) Oil India Limited 26.75 3,280.95 26.75 2,212.27
(Quoted – Fully paid up)
(Face Value `10 per share)
(d) Scooters India Limited 0.01 0.36 0.01 0.16
(Quoted – Fully paid up) 517
(Face Value `10 per share)
(e) Indian Gas Exchange Limited 3.69 36.94 - -
(Unquoted – Fully paid up)
(Face Value `10 per share)
(Note No. 14.2.4)
B. Financial assets measured at FVTPL
(a) Oil Spill Response Limited - 0.01 - 0.01
(Unquoted – Fully paid up)
(Face Value `10 per share)
(Note No. 14.2.1)
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars As at March 31, 2021 As at March 31, 2020

No. (in No. (in
Amount Amount
million) million)
(b) Planys Technologies Private Limited - 0.27 - 0.32
(Unquoted– Fully paid up)
(Face Value `10 per share)
(Note No. 14.2.2)
(c) String Bio Private Limited - - - -
(Unquoted – Fully paid up)
(Face Value `10 per share) (Note no. 14.2.3)
(d) Woodlands Multispeciality Hospital Limited - 0.02 - 0.02
(Unquoted – Fully paid up)
(Face Value `10 per share)
(e) Mangalam Retail Services Limited 0.02 0.28 0.02 0.28
(Unquoted– Fully paid up)
(Face Value `10 per share)
(f) Shushrusha Citizen Co-operative Hospital - 0.01 - 0.01
Limited
(Unquoted – Fully paid up)
(Face Value `100 per share)
Total Investment in other equity instruments 155,655.44 128,070.12

14.2.1 100 Equity Shares of Oil Spill Response Limited valued at GBP one each at the time of issuance. Total
value in ` at the time of issuance of shares was `6,885/-, further 200 equity shares have also been
allotted to the Company without any consideration thereby the Company holds total 300 equity shares.

14.2.2 During the year 2017-18, the Company has subscribed 10 nos. equity shares of Planys Technologies
Private Limited a startup Company, having face value `10 per share at a premium of `25,430/- per
share. The equity shares have been fair valued during the year at `26,937/- per equity share (for
the previous year `32,450/- per equity share).

14.2.3 During the year 2018-19, the company has subscribed 1 no. equity shares of String Bio Private Limited a
startup Company, having face value ₹10 per share at a premium of `267.30/- per share.
14.2.4 During the year, the Company has subscribed 3,693,750 nos. equity shares of Indian Gas Exchange
Limited (IGX) having face value of `10 per share for an aggregate consideration of `36.94 million.
The investment being a strategic investment, the same is designated as fair valued through other
518 comprehensive income (FVTOCI).

(ii) Investment in securities (` in million)

As at As at
March 31, 2021 March 31, 2020
Particulars
No. (in No. (in
Amount Amount
million) million)
A. Financial assets carried at amortized
cost
(a) Investment in Government securities
-8.40% Oil Co. GOI Special Bonds 2025
0.20 1,975.08 0.20 1,975.08
(Unquoted – Fully paid up)
 ANNUAL REPORT
2020-21

As at As at
March 31, 2021 March 31, 2020
Particulars
No. (in No. (in
Amount Amount
million) million)
B. Financial assets measured at FVTPL
(a) Investment in mutual funds
- For site restoration fund 32,577.33 30,228.72
Total Investment in Securities 34,552.41 32,203.80
Aggregate carrying value of unquoted
34,552.41 32,203.80
investments
Aggregate amount of impairment in value of
- -
investments
14.2.5 In respect of subsidiary OVL, the investments for site restoration in respect of Sakhalin-1, Russia
are invested by J P Morgan Chase Bank N.A., the Foreign Party Administrator (FPA) in accordance

Consolidated Financial Statements

with the portfolio investment guidelines provided under the Sakhalin-1 Decommissioning funding
agreement entered into between the FPA and the foreign parties to the Consortium in accordance with
the related production sharing agreement (PSA). The proceeds from the investment will be utilized for
decommissioning liability to the Russian State as per the PSA.

(iii) Investment in Compulsory Convertible Preference Share (` in million)

As at As at
Particulars March 31, 2021 March 31, 2020
No. (in No. (in
Amount Amount
million) million)
A. Financial assets measured at FVTPL
(a) Planys Technologies Private Limited
(Unquoted– Fully paid up) - 42.07 - 50.69
(Face Value `1500 per share) (Note No. 14.2.6)
(b) String Bio Private Limited
(Unquoted – Fully paid up) 0.16 45.00 0.16 45.00
(Face Value `10 per share) (Note No.14.2.7)
(c) Chakr Innovation Pvt. Ltd.
(Unquoted – Fully paid up) - 30.96 - 30.00
(Face Value `100 per share) (Note No.14.2.8)
(d) Logicladder Technologies Pvt. Ltd. 519
(Unquoted – Fully paid up) 0.02 59.24 0.02 50.00
(Face Value `100 per share) (Note No.14.2.9)
(e) Sagar Defence Engineering Pvt. Ltd.
(Unquoted – Fully paid up) 0.01 56.63 0.01 45.00
(Face Value `10 per share) (Note No.14.2.10)
(f) Investments in other Start - Ups (Note No.
138.16 - 86.79
14.2.11)
Total Investment in Preference Share 372.06 307.48
Aggregate carrying value of unquoted investments 372.06 307.48
Aggregate market value of unquoted investments - -
 THE UNSTOPPABLE
ENERGY SOLDIERS
14.2.6 During the year 2018-19, the Company had subscribed for additional 1,179 nos. Compulsory
Convertible Preference Shares (CCPS) of Planys Technologies Private Limited (PTPL), a startup
Company, having face value of `1,500.00 per share at a premium of `23,940.00 per share.
The total number of CCPS subscribed by the Company as at March 31, 2019 is 1,562 CCPS.
The CCPS have been fair valued during the year at `26,937/- per CCPS (for the previous year
`32,450/- per CCPS).

The CCPS are Compulsory convertible into equity shares upon the expiry of 19 years from the date of
issue. The Company may, at any time, prior to the expiry of 19 years from the date of issue, irrespective
of either the Qualified IPO or Exit takes place or not, issue a notice to the PTPL for conversion of
any CCPS into Equity Shares on 1:1 basis (i.e. for one CCPS, PTPL shall issue one Equity Share)
(“Conversion Ratio”) at a pre-money valuation of `360.00 million subject to anti-dilution protection
and upon receipt of such notice, PTPL shall be under an obligation to convert such CCPS to the Equity
Shares in accordance with the conversion ratio without the need to receive any further consideration
therefor.
The CCPS bears a cumulative dividend, at the fixed rate of 0.0001% or dividend that would have been
payable in a financial year on Equity Shares that the holders of CCPS would have been entitled to on
as-if-converted basis i.e. Equity Shares arising from conversion of CCPS, whichever is higher. The
dividend amount on as-if-converted basis shall be payable to holders of CCPS only if dividend has been
declared on Equity Shares.

520

ONGC promotes indigenous art and craft. The bastar form of art-
work has been used to convey ONGC’s mission, values and ethos
 ANNUAL REPORT
2020-21
14.2.7 During the year 2018-19, the Company 14.2.9 During the year 2019-20, the Company
had subscribed 162,275 nos. Compulsory has subscribed 19,149 nos. Compulsory
Convertible Preference Shares (CCPS) of Convertible Preference Shares (CCPS) of
String Bio Private Limited (SBPL), a startup Logicladder Technologies Private Limited
Company, having face value of `10 per (LTPL) a startup Company, having face value
share at a premium of `267.30 per share. of `100 per share at a premium of `2,511.00
The CCPS are Compulsory convertible into per share. The CCPS are Compulsory
equity shares upon the expiry of 20 years convertible into equity shares upon the
from the date of issue. The Company may, expiry of 20 years from the date of issue
at any time, prior to the expiry of 20 years a notice to the LTPL for conversion of any
from the date of issue, issue a notice to the CCPS into Equity Shares on 1:1 basis (i.e.
SBPL for conversion of any CCPS into Equity for one CCPS, LTPL shall issue one Equity
Shares on 1:1 basis (i.e. for one CCPS, SBPL Share) (“Conversion Ratio”) subject to anti-
shall issue one Equity Share) (“Conversion dilution protection and upon receipt of such
Ratio”) subject to anti-dilution protection and notice, LTPL shall be under an obligation to
upon receipt of such notice, SBPL shall be convert such CCPS to the Equity Shares in

Consolidated Financial Statements

under an obligation to convert such CCPS accordance with the conversion ratio without
to the Equity Shares in accordance with the
the need to receive any further consideration
conversion Ratio without the need to receive
therefor. The CCPS have been fair valued
any further consideration therefor.
during the year at `3,094/- per CCPS.
The CCPS bears a dividend, at the fixed rate
The CCPS bears a dividend, at the fixed rate
of 0.001% of original issue price per CCPS on
of 0.01% of original issue price per CCPS on
a cumulative basis compounded annually. In
a cumulative basis compounded annually. In
addition if a dividend is declared or paid on
addition if a dividend is declared or paid on
Equity Shares, an additional dividend shall
be declared or paid with respect that the Equity Shares, an additional dividend shall
holders of CCPS. be declared or paid with respect that the
holders of CCPS.
14.2.8 During the Previous year, the Company
has subscribed 888 nos. Compulsory 14.2.10 During the year 2019-20, the Company
Convertible Preference Shares (CCPS) of has subscribed 12,658 nos. Compulsory
Chakr Innovation Private Limited (CIPL) Convertible Preference Shares (CCPS) of
a startup Company, having face value of Sagar Defence Engineering Private Limited
`100 per share at a premium of `33,683.78 (SDEPL) a startup Company, having face
per share. The CCPS are Compulsory value of `10 per share at a premium
convertible into equity shares upon the of `3,545.00 per share. The CCPS are
expiry of 20 years from the date of issue, Compulsory convertible into equity shares
a notice to the CIPL for conversion of any upon the expiry of 20 years from the date of
issue, a notice to the SDEPL for conversion
521
CCPS into Equity Shares on 1:1 basis (i.e.
for one CCPS, CIPL shall issue one Equity of any CCPS into Equity Shares on 1:1 basis
Share) (“Conversion Ratio”) subject to anti- (i.e. for one CCPS, SDEPL shall issue one
dilution protection and upon receipt of such Equity Share) (“Conversion Ratio”) subject
notice, CIPL shall be under an obligation to to anti-dilution protection and upon receipt
convert such CCPS to the Equity Shares in of such notice, SDEPL shall be under an
accordance with the conversion ratio without obligation to convert such CCPS to the Equity
the need to receive any further consideration Shares in accordance with the conversion
therefor. The CCPS bears a dividend, at the ratio without the need to receive any further
cumulative coupon rate of 0.001%. The consideration therefor. The CCPS have been
CCPS have been fair valued during the year fair valued during the year at `4,474/- per
at `34,861/- per CCPS. CCPS.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The CCPS bears a dividend, at the fixed rate of 0.01% of original issue price per CCPS on a cumulative
basis compounded annually. In addition if a dividend is declared or paid on Equity Shares, an additional
dividend shall be declared or paid with respect that the holders of CCPS.

14.2.11 In respect of subsidiary HPCL, in view that these start-up (20 start ups)are in the stage of their
development and are mostly in traction and refinement stages, the carrying value of these start-ups is
considered as a reasonable approximiation of their fair value.

14.2.12 Disclosure on carrying value and market value of investment

(` in million)
As at As at
Particulars
March 31, 2021 March 31, 2020
Aggregate carrying value of quoted investments 170,376.54 142,046.03
Aggregate carrying value of unquoted 375,669.31 372,057.11
investments
Aggregate market value of quoted investments 197,739.80 165,513.56
Aggregate amount of impairment in value of (7,397.36) (6,223.91)
investments

15 Trade receivables
(` in million)
As at As at
Particulars March 31, 2021 March 31, 2020
Non Current Current Non Current
Current
(a) Considered good - Secured (Note No. - 3,379.69 - 1,543.82
15.8)
(b) Considered good - Unsecured (Note - 150,288.71 - 90,190.25
No. 15.2)
(c) Having significant increase in credit risk 25,629.56 8,097.74 23,740.97 -
(d) Credit Impaired 3,519.22 4,348.64 8,160.60 4,601.69
Less: Impairment for doubtful receivables 3,519.22 5,956.44 8,160.60 4,601.69
522
Total 25,629.56 160,158.34 23,740.97 91,734.07

15.1 Generally, the Company enters into long-term crude oil and gas sales arrangement with its customers.
The normal credit period on sales of crude, gas and value added products is 7 - 30 days. No interest is
charged during this credit period. Thereafter, interest on delayed payments is charged at SBI Base rate
plus 4% - 6% per annum compounded each quarter on the outstanding balance.
Out of the gross trade receivables as at March 31, 2021, an amount of `64,894.62 million (as at March
31, 2020 `39,268.01 million) is due from Oil and Gas Marketing companies, the Company’s largest
customers. There are no other customers who represent more than 5% of total balance of trade receivables.
Accordingly, the Company assesses impairment loss on dues from Oil Marketing Companies on facts and
circumstances relevant to each transaction.
 ANNUAL REPORT
2020-21
The Company has concentration of credit risk 2021 amounting to `6,012.72 million, out of this
due to the fact that the Company has significant an amount of `2,257.50 million has since been
receivables from Oil and Gas Marketing received. The Company has been receiving
Companies (refer note no.51.3.3 & 52.4). revised transportation tariff since November 20,
However, these companies are reputed and 2008 from GAIL in respect of all its customers
creditworthy public sector undertakings (PSUs). other than MGL and also, from the year 2016,
in respect of the customer for which matter
15.2 Includes an amount of `3,755.22 million is pending with AMRCD. In view of the same,
(Previous year `3,129.05 million) due towards the receivable of `3,755.22 million as at March
Pipeline Transportation Charges for the period 31, 2021 (Previous year `3,129.05 million) is
from November 20, 2008 to March 31, 2021 considered good.
from GAIL India Limited (GAIL) on account of
revised pipeline transportation tariff charges. 15.3 In respect of subsidiary OVL, the company
generally enters into crude oil sales contracts
In terms of Gas Sales Agreement (GSA) signed with reputed Oil Marketing Companies (OMCs)
between GAIL and the Company, GAIL is to pay / International Oil Companies (IOCs) / National
transportation charges in addition to the price of Oil Companies (NOCs) on the basis of tendering

Consolidated Financial Statements

gas in case of Uran Trombay Natural Gas Pipe for each of its cargo’s. However, the Company
Line (UTNGPL) and were being paid by GAIL. has also entered into some long-term sales
Subsequent to the replacement of pipeline in arrangement with Oil Marketing Companies
2008, the revised pipeline transportation tariff in (OMCs)/ International Oil Companies (IOCs)
respect of UTNGPL as approved by Petroleum / National Oil Companies (NOCs) for crude oil
and Natural Gas Regulatory Board (PNGRB) sales and supply of natural gas.
is being invoiced to GAIL with effect from The Company generally sells its products on
November 20, 2008. Maharashtra Gas Limited an average credit period of around 30 days. In
(MGL), one of the customers of GAIL, had filed respect of gas sales in some of the projects,
a complaint with PNGRB on February 12, 2015 the Company receives payments in advance in
regarding applicability of tariff on supply of gas accordance with the respective sales contract.
to GAIL. After hearing all parties, PNGRB vide In respect of a long term gas sales contract with
order dated October 15, 2015 dismissed the one of the national oil companies, a credit period
complaint and gave a verdict in favour of the of 40 days is allowed. Interest is not charged on
Company. Pursuant to appeal by MGL to the trade receivables for the applicable credit period
Appellate Tribunal for Electricity (APTEL), the from the date of invoice. For delayed period of
case was remanded back to PNGRB. Once payments, interest is charged as per respective
again, PNGRB vide order dated March 18, arrangements, which is generally determined
2020 had dismissed the complaint, authorized as one month LIBOR + 2% per annum over
the pipeline as a Common Carrier Pipeline the applicable Bank Rate on the outstanding
and directed both GAIL and MGL to pay the balance.
transportation tariff fixed by PNGRB from time
to time for UTNGPL. MGL has again filed an The Company assesses impairment loss on 523
appeal with APTEL on April 04, 2020 against the trade receivables on the basis of facts and
order of PNGRB. Matter is presently pending circumstances relevant to each customer.
with APTEL. Usually, Company collects all its receivables
within the contractually allowed credit periods.
Arbitration was invoked by another customer of The Company has concentration of credit risk
GAIL which is presently pending with Ministry due to the fact that the Company has significant
of Petroleum and Natural Gas, Government of receivables from Oil Marketing Companies and
India in terms of Administrative Mechanism for International Oil Companies (IOCs). However
Resolution of CPSEs Disputes (AMRCD). these are reputed National Oil Companies
The Company has been raising invoices on (NOCs) and the company does not expect
GAIL towards Pipeline Transportation Charges any material loss on account of delay or non
during the period from November 2008 to March payment of dues.
 THE UNSTOPPABLE
ENERGY SOLDIERS
15.4 In respect of subsidiary OVL, the trade arrangement with Oil Marketing Companies
receivables breakup between customers having for domestic sales besides export of products
outstanding more than 5% and other customers through term contracts and spot international
is- tenders and supplies to SEZ customers. The
average credit period on sales ranges from 7
As at As at to 45 days (Year ended March 31, 2020 ranges
Particulars March 31, March 31, from 7 to 45 days). Interest is not charged on
2021 2020 trade receivables for the applicable credit period
Customers with 49,577.29 38,761.08 from the date of invoice. For delayed period of
outstanding balance payments, interest is charged as per respective
of more than 5% of arrangements, which is upto 2% per annum
Trade receivables (Year ended March 31, 2020 upto 2% per
Other customers 1,580.91 1,274.79 annum) over the applicable bank rate on the
outstanding balance.
Total 51,158.20 40,035.87
15.8 Secured Trade Receivables above includes
15.5 In respect of subsidiary OVL, during the year, trade `1,788.23 million (as at March 31, 2020 of
receivables in respect of Sudan amounting to `582.86 million) backed by bank guarantees
`29,000.06 million (previous year `31,748.82 and letter of credit received from customers in
million) has been assessed for lifetime expected case of MRPL.
credit loss method and a reversal of `4,472.86
million has been made. The total outstanding 15.9 Subsidiary Company OMPL does export sales
provision against these receivables stands through short-term tender arrangements and
at `3,347.79 million (previous year `8,007.85 also through B2B arrangements. Company
million). does domestic sales through long term sales
arrangement with Holding Company and short
15.6 In respect of subsidiary HPCL, impairment of term arrangement with others. The average
doubtful receivables includes loss allowance credit period ranges from 7 to 30 days (Year
of `3,026.20 million (31.03.2020: `1,593.30 ended March 31, 2020 ranges from 7 to 30 days).
million) on trade recievables of `9,691.30 million Interest is not charged on trade receivables for
(31.03.2020: `1,593.30 million) for which the the applicable credit period from the date of
credit risk has been assessed on an individual invoice. For delayed period of payments, interest
basis. is charged as per respective arrangements.
15.7 In respect of subsidiary MRPL, the Company 15.10 Movement of Impairment for doubtful
generally enters into long-term sales receivables

(` in million)
524 Particulars
Year ended Year ended
March 31, 2021 March 31, 2020
Balance at beginning of the year 12,762.29 11,662.30
Addition in expected credit loss allowance 1,411.36 522.89
Write back during the year (4,529.72) (100.96)
Reclassification/Other Adjustments (168.27) 678.06
Balance at end of the year 9,475.66 12,762.29
 ANNUAL REPORT
2020-21
15.10.1 Group’s subsidiary OVL has determined its functional currency as US$. Adjustments includes net effect
of exchange differences of ` (168.27) million for the year ended March 31, 2021 (for the year ended
March 31, 2020 `678.06 million) on account of translation of the consolidated financial statements of the
ONGC Videsh Limited from US$ to Group’s presentation currency “`”. Refer Note No. 3.21 and 5.1 (a).

16 Loans
(` in million)
As at As at
Particulars March 31, 2021 March 31, 2020
Non Current Current Non Current Current
(Unsecured, Considered Good unless
otherwise Stated)
A. Deposits
- Considered Good 3,053.59 1,478.03 3,392.19 1,379.03

Consolidated Financial Statements

- Credit Impaired 14.41 0.71 14.42 -
Less: Impairment for doubtful deposits 14.41 0.71 14.42 -
Total 3,053.59 1,478.03 3,392.19 1,379.03
B. Loans to Related Parties
- Considered Good 3,694.64 2,326.34 4,892.65 2,389.34
- Credit Impaired 65.04 - 66.80 -
Less: Impairment for doubtful loans 65.04 - 66.80 -
Total 3,694.64 2,326.34 4,892.65 2,389.34
C. Loans to Public Sector Undertakings
- Credit Impaired 170.50 - 170.50 -
Less: Impairment for doubtful loans 170.50 - 170.50 -
Total - - - -
D. Loans to Employees (Note No.16.1)
- Secured and Considered Good 16,427.39 2,965.18 14,575.22 2,679.10
- Unsecured and Considered Good 256.35 15.27 122.06 1,727.04
- Credit Impaired - 9.94 - 10.37
Less: Impairment for doubtful loans - 9.94 - 10.37
525
Total 16,683.74 2,980.45 14,697.28 4,406.14
E. Loans to Others (Note No. 16.2)
- Considered Good 7,773.17 1,169.20 9,119.12 3,628.83
- Having significant increase in credit risk 1,613.69 153.77 1,535.43 614.17
- Credit Impaired 906.86 206.42 133.44 173.38
Less: Impairment for doubtful loans 5,507.09 793.61 1,624.30 769.72
Total 4,786.63 735.78 9,163.69 3,646.66
Total Loans 28,218.60 7,520.60 32,145.81 11,821.17
 THE UNSTOPPABLE
ENERGY SOLDIERS
16.1 Loans to employees include an amount of `11.11 million (as at March 31, 2020 `8.35 million) outstanding
from Key Managerial Personnel.

16.2 In respect of subsidiary HPCL, Non current loan to others includes Loan to Pradhan Mantri Ujjwala Yojana
(PMUY) customers amounting to `9,630.50 million (as at March 31, 2020: `10,271.00 million) before
impairment and provision towards the same amounting to `5,507.09 million (as at March 31, 2020:
`1,624.30 million). Similarly, Current loan to others includes Loan given to Pradhan Mantri Ujjwala Yojana
(PMUY) consumers of `1,178.00 million (as at March 31, 2020: `4,108.40 million) before impairment and
provision towards the same amounting to `673.60 million (as at March 31, 2020: `649.70 million).

16.3 In respect of subsidiary HPCL, the Pradhan Mantri Ujjwala Yojana (PMUY) was launched in
2016 to provide LPG connections to women from BPL households. Under the scheme, no
charges towards the deposit of equipment and cost of Suraksha hose were to be collected from
the beneficiary. An amount of `1,600 per connection is paid by the Oil Marketing Companies
( OMC ) to the Distributor and the Government reimburses OMC’s an amount of `1,600 per connection towards
the same. For the purchase of the stove (cost `990/-) as well as for cost of the first fill (prevailing rate at the
time of installation), the beneficiary is given an option to avail loan from OMC. This loan is to be recovered
from the subsidy payable to the consumer on purchase of the refill cylinder. The total loan disbursed to
Consumers under (PMUY), since inception is `29,630.10 million (31.03.2020: `29,637.50 million) and of this
`18,822.50 million (31.03.2020: `19,662.10 million) is outstanding at period end. This is to be repaid
out of the subsidy accruing to the consumer from the subsequent refill of cylinders. The overall
consumer base is at 21.50 million (net of termination) and the consumption pattern of LPG is still
evolving. Considering the consumption pattern of refills, level of subsidies and consequential impact
on repayment of the loan, by following the principles of prudence and conservatism, an aggregate
provision of `6,180.70 million (31.03.2020: `2,274.00 million) is estimated and recognized as on March
31, 2021, which includes a provision of `3,906.70 million (2019-20: `1,316.90 million) made during
the financial year 2020-21. The expected credit loss estimate is reasonable. The Loan is considered
as ‘subsequently measured at amortized cost’ in the financial statements. Considering the steep
decline in the average subsidy of LPG during the year at `42/- (2019-20: `200/-) per cylinder and the
consequential increase in loan tenure, the carrying value of loan outstanding as at Balance Sheet date
requires re-measurement based on revised estimates of future cash flows. Such re-measurement
resulted in reduction in gross carrying amount of outstanding loan by a `4,506.20 million (2019-20:
`NIL). Further, considering the recognition of Interest Income of `1,775.10 million during the year on this
Loan, both having been recognized in the Statement of Profit and Loss during the year, the net impact
is a reduction in fair-valuation of loan by `2,731.10 million. The carrying amount of outstanding loan at
period end after considering loans disbursed/recovered during the year is `10,808.50 million (2019-20:
`14,379.50 million).
16.4 In respect of subsidiary MRPL, Company has policy of providing financial assistance to Schedule Caste
526 / Schedule Tribe category dealers for Retail Outlets under the Corpus Fund Scheme (CFS). Under this
scheme upon written request seeking working capital loan / assistance by dealer, the company provides
working capital loan for a full cycle of operation (equivalent to seven days sales volume) of the dealer. This
working capital loan as well as the interest at the specified rate thereon will be recovered in hundred equal
monthly installments from the thirteenth month of commissioning of the dealer operated Retail Outlet.
 ANNUAL REPORT
2020-21
16.5 Movement of Impairment (` in million)
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Balance at beginning of the year 2,656.11 1,335.58
Recognized during the year 3,907.65 1,323.19
Reversed during the year (0.70) (2.58)
Reclassification/Other Adjustments (1.76) (0.08)
Balance at end of the year 6,561.30 2,656.11

17 Deposits under Site Restoration Fund (` in million)

Particulars As at As at
March 31, 2021 March 31, 2020
Deposit under site restoration fund scheme 235,114.70 222,836.06

Consolidated Financial Statements

Total 235,114.70 222,836.06

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

17.2 Includes `2,522.07 million (Previous year `2,402.18 million) towards Tapti A Facilities and `45,405.22
million (Previous year `42,506.87 million) towards Panna Mukta Fields (refer Note No. 6.2, 7.2.4 and 32.5).

17.3 In respect of subsidiary OVL, deposit under site restoration fund is in respect of Block 06.1, Vietnam. These
funds have been deposited in an earmarked bank account maintained for this purpose. Such deposit is
measured at amortised cost. For details of site restoration fund measured at fair value, refer Note No.
14.2.5.

18 Finance lease receivables (` in million)

As at As at
Particulars
March 31, 2021 March 31, 2020
Finance lease receivables (Note No.18.2)
Unsecured, Considered Doubtful 5,492.97 5,641.71
Less: Impairment for uncollectible lease payments 5,492.97 5,641.71
(Note No. 18.1) 527
- -

18.1 Movement of Impairment for doubtful finance lease receivables (` in million)

Particulars Year ended Year ended
March 31, 2021 March 31, 2020
Balance at beginning of the year 5,641.71 5,219.59
Recognized during the year - (47.68)
Effect of exchange differences (Note No. 18.1.1) (148.74) 469.80
Balance at end of the year 5,492.97 5,641.71
 THE UNSTOPPABLE
ENERGY SOLDIERS
18.1.1 Group’s subsidiary OVL has determined its functional currency as US$. Above foreign exchange difference
represents differences on account of translation of the consolidated financial statements of the ONGC
Videsh Limited from US$ to Group’s presentation currency (`). Refer Note No. 3.21 and 5.1 (a).

18.2 The subsidiary company OVL had completed the 12”X 741 Kms multi-product pipeline from Khartoum
refinery to Port Sudan for the Ministry of Energy and Mining of the Government of Sudan (GOS) on Build,
Own, Lease and Transfer (BOLT) basis and handed over the same for operation to GOS during the
financial year 2005-06. The project was implemented in consortium with Oil India Limited, Company’s
share being 90%. Non-current finance lease amount shows the non-receipted lease payments against
which 100% allowance has been made.

19 Financial assets - Others

(` in million)

Particulars As at As at
March 31, 2021 March 31, 2020
Non Current Current Non Current Current
(Unsecured, Considered Good unless
otherwise Stated)
A. Derivative asset (Note No. 19.4.1) 31.41 85.75 181.79 160.37
B. Interest accrued on loans to
employees
Secured considered good 275.52 3.45 198.57 3.04
275.52 3.45 198.57 3.04
C. Interest Accrued on deposits and
loans
- Considered Good - 1,670.85 - 2,402.78
- Credit Impaired 22.87 - 22.87 -
Less: Impairment for doubtful interest 22.87 - 22.87 -
accrued
- 1,670.85 - 2,402.78
D. Cash Call Receivable from JO
Partners
- Considered Good - 5,105.45 - 5,538.31

528 - Credit Impaired 6,345.47 4.75 5,696.71 4.88

Less: Impairment for doubtful claims / 6,345.47 4.75 5,696.71 4.88
advances
- 5,105.45 - 5,538.31
E. Advance Recoverable in cash
- Considered Good (Note No. 19.1) 6,162.27 28,578.97 6,721.37 24,120.47
- Credit Impaired (Note No.19.2 & 19.3) 470.02 14,562.01 267.45 21,225.89
Less: Impairment for doubtful claims / 470.02 14,562.01 267.45 21,225.89
advances
6,162.27 28,578.97 6,721.37 24,120.47
 ANNUAL REPORT
2020-21

Particulars As at As at
March 31, 2021 March 31, 2020
Non Current Current Non Current Current
F. Deposit with Banks 1,328.02 - 3,084.36 -
G. Receivable from Operators
- Considered Good - 5,981.65 - 2,986.07
- Credit Impaired - 355.44 - 214.56
Less: Impairment for doubtful claims / - 355.44 - 214.56
advances
- 5,981.65 - 2,986.07

H. Receivables from Govt of India - 71.94 - 2,904.78

towards Pradhan Mantri Ujjwala

Consolidated Financial Statements

Yojana (PMUY)

I. Receivables from Govt of India - 2,796.26 - 55,763.50

towards Direct Benefit Transfer of
LPG (DBTL)

J. Balance with Life Insurance - 9,750.43 10,417.62

Corporation of India

K. Others
- Considered Good 31,902.25 14,553.77 32,612.66 11,410.60
- Credit Impaired - 0.10 - 1,332.68
Less: Impairment for doubtful claims / 1,392.10 2,976.98 1,429.79 1,332.68
advances
30,510.15 11,576.89 31,182.87 11,410.60
Total Other financial assets 38,307.37 65,621.64 41,368.96 115,707.54

19.1 During the year 2010-11, the Oil Marketing Companies, nominees of the Government of India (GoI)
recovered US$ 80.18 million (Share of the Company US$ 32.07 million (equivalent to `2,356.82 million)) as
per directives of GoI in respect of Joint Operation - Panna Mukta and Tapti Production Sharing Contracts 529
(PSCs). Pending finality by Arbitration Tribunal, the company’s share of US$ 32.07 million equivalent
to `2,356.82 million (March 31, 2020: `2,420.64 million) has been disclosed under the head ‘Advance
Recoverable in Cash’(refer Note No.58.1.4).

19.2 In Ravva Joint Operation, the demand towards additional profit petroleum raised by Government of India
(GoI), due to differences in interpretation of the provisions of the Production Sharing Contract (PSC) in
respect of computation of Post Tax Rate of Return (PTRR), based on the decision of the Malaysian High
Court setting aside an earlier arbitral tribunal award in favor of operator, was disputed by the operator
Vedanta Limited (erstwhile Cairn India Limited). The Company is not a party to the dispute but has agreed
to abide by the decision applicable to the operator. The Company is carrying an amount of US$ 167.84
million (equivalent to `12,334.91 million) after adjustments for interest and exchange rate fluctuations
which has been recovered by GoI, this includes interest amounting to US$ 54.88 million (`4,033.13
 THE UNSTOPPABLE
ENERGY SOLDIERS
million). The Company has made impairment In August 2008 three JV partners excluding
provision towards this recovery made by the ONGC had invoked arbitration against
GoI. Government of India (GoI) on the issue. The
contention of claim as operator was that it
In subsequent legal proceedings, the Appellate should be allowed 100% Cost recovery of the
Authority of the Honorable Malaysian High Base Development cost. The issue was argued
Court of Kuala Lumpur had set aside the at various levels including court of Appeals
decision of the Malaysian High Court and the and Malaysian Federal Court. The decision of
earlier decision of arbitral tribunal in favour court was in favour of JV partners. After Federal
of operator was restored, against which court of Malaysia decision, the case was filed
the GoI has preferred an appeal before the with Delhi High court for enforcement of award
Federal Court of Malaysia. The Federal Court in India. Delhi High Court vide order dated
of Malaysia, vide its order dated October 11, February 19, 2020 allowed enforcement of the
2011, has dismissed the said appeal of the Arbitration Award including declaratory relief.
GoI. GoI had filed an SLP in Honorable Supreme
The Company has taken up the matter Court of India against the said order and
regarding refund of the recoveries made in the judgment dated September 16.2020 was
view of the favorable judgment of the Federal in favour JV partner.
Court of Malaysia with Ministry of Petroleum Ministry of Petroleum and Natural Gas
and Natural Gas (MoP&NG), GoI. However, (MoPNG), GoI vide letter dated October 10,
according to a communication dated January 2018 issued a recovery notice to Oil Marketing
13, 2012, MoP&NG expressed the view that the companies (OMCs) for US$ 52 million plus
Company’s proposal would be examined when applicable interest towards short payment
the issue of carry in Ravva PSC is decided in of Government share of Profit Petroleum on
its entirety by the Government along with other account of dispute of Cost recovery of Base
partners. Development cost from the payments made
to the Company towards the sales proceeds
In view of the perceived uncertainties in of Crude Oil and Natural Gas. During the
obtaining the refund at this stage, the year OMCs deducted and deposited the
impairment made in the books as above sales proceeds of Crude Oil and Natural Gas
has been retained and netted off against the to MoPNG and the entire amount of US$ 83
amount recoverable as above in the Financial million ($ 52 million along with interest of $31
Statements for the year ending March 31, million) (equivalent `6,099.67 million) has
2021. (Figures in ` are restated). been recovered. In view of the Supreme Court
Judgment for enforcement arbitration award
19.3 The Ravva PSC stipulates Base Development
in India, an amount of USD 33.94 million has
Cost of Ravva JV to be at US$ 188.98 million
been adjusted from profit petroleum payable
with a cap of 5% increase. Accordingly the
to GoI during the year 2020-21 against the US$
530 development cost stated in the PSC is US$
83 million receivable from GoI. Balance amount
198.43 million. However, actual cost incurred
of US$ 49.06 million (equivalent to `3,605.30
by JV is more than amount stipulated in the
million) is considered good.
PSC. Director General of Hydrocarbons did not
approve the increase in base development cost 19.4 In case of subsidiary OVL,
for cost recovery and demanded additional 19.4.1 ONGC Videsh has entered into options
profit petroleum vide letter dated August 8, contract covering Euro 52.5 million (in previous
2006 from the contractor / JV for an amount year covering Euro 52.5 million) out of the
of US$ 166 million as short paid on account of principal amount of 2.75% Euro 525 million
cost recovery of Development cost in excess Bonds. The option contract has been marked
of Base Development Cost. to market (MTM) with a gain position of
`33.76 million as on March 31, 2021 (Previous
year `44.44 million).
 ANNUAL REPORT
2020-21
ONGC Videsh Vankorneft Pte Ltd, a step-down by Government of India (GOI) as a COVID
subsidiary, has entered into options contract relief measure. The scheme entailed PMUY
covering JPY 5.7 billion (`3,766.96 million) Consumers to avail a sequential advance
(in previous period JPY 5.7 billion (`3,979.91 towards purchase of three free refill cylinders.
million)) out of the principal amount of 38 A total of 38.10 million refills were delivered
Billion JPY Facility Agreement (`25,076.86 under the scheme towards which an advance
million) for which the first tranche of Principal amount of `26,018.60 million (2019-20:
payment is to be made in April 2022. There NIL) was disbursed. The scheme ended on
is MTM gain position of `31.41 million as on 31/12/2020. The scheme mechanism enabled
March 31, 2021 (`137.34 million as on March filing of claim with GOI towards reimbursement.
31, 2020) for these options contracts. Claims amounting to `25,102.80 million were
settled leaving an amount of `915.80 million
19.5 In case of subsidiary HPCL
unsettled till date. This unsettled amount
19.5.1 The company implements various Government represents advance towards which either, the
of India schemes such as PMUY, Direct Consumers after availing advance, had not
Benefit Transfer scheme wherein the amount taken the refills, or claims by the Corporation,

Consolidated Financial Statements

is either received in advance or reimbursed which were not settled fully pursuant to price
subsequently. As of March 31, 2021, variance between date of advance and date
reimbursements amounting to `2,159.20 of sale of refill cylinders. Considering that
million (March 31, 2020: `25,180.00 million) the mechanism towards settlement of such
are pending for a period beyond 6 months. amounts is not explicit, notwithstanding the
Being dues from Government, no provision persuasion for its full and final settlement
has been considered necessary. with GOI, considering the principles
of prudence and conservatism, a loss
19.5.2 During the financial year, Pradhan Mantri
allowance has been recognized amounting to
Garib Kalyan Yojana (PMGKY) was rolled out
`915.80 million (2019-20: NIL).

19.6 Movement of Impairment

(` in million)
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Balance at beginning of the year 30,194.83 25,067.65
Recognized during the year 2,903.85 4,130.41
Write back during the year (6,923.20) (67.02)
Other adjustments (45.84) 1,063.79
Balance at end of the year 26,129.64 30,194.83 531
19.6.1 Group’s subsidiary OVL has determined its functional currency as US$. Adjustments includes net effect
of exchange differences as at March 31, 2021 of ` (45.84) million (as at March 31, 2020 `134.01 million)
on account of translation of the consolidated financial statements of the ONGC Videsh Limited from US$
to Group’s presentation currency (`). Refer Note No. 3.21 and 5.1 (a).

19.7 In respect of subsidiary OVL, other financial assets include receivables of ONGC San Cristobal BV from
its associate Petrolera Indovenezolana SA (PIVSA) on account of outstanding dividend as at March 31,
2021 is `30,337.99 million (as at March 31, 2020 `31,159.50 million). The underlying trade receivables in
PIVSA books have been provided for as per lifetime expected credit loss method.
 THE UNSTOPPABLE
ENERGY SOLDIERS
20 Other assets
(` in million)
As at As at
Particulars March 31, 2021 March 31, 2020
Non Current Current Non Current Current
A. Capital advances (Note No. 20.3)
- Considered Good 12,740.34 - 11,088.90 -
- Credit Impaired 341.99 - 25.44 -
Less: Impairment 341.99 - 25.44 -
12,740.34 - 11,088.90 -
B. Other receivables
- Considered Good 61.95 - 1.49 -
- Credit Impaired 408.42 - 469.45 -
Less: Impairment 408.42 - 469.45 -
61.95 - 1.49 -
C. Deposits (Note No. 20.5, 20.6 & 20.8)
With Customs/Port Trusts etc. 6,512.83 4,434.48 5,178.83 4,885.25
With others
- Considered Good 10,829.15 89,360.02 7,823.30 77,319.96
- Credit Impaired 1,625.38 682.21 1,528.68 680.53
Less: Impairment 1,848.38 682.21 1,528.68 680.53
17,118.98 93,794.50 13,002.13 82,205.21
D. Advance recoverable
- Considered Good 901.79 25,548.46 686.65 17,959.95
- Credit Impaired 642.72 961.54 589.62 1,335.96
Less: Impairment 642.72 961.54 589.62 1,335.96
901.79 25,548.46 686.65 17,959.95
532 E. Carried interest (Note No. 20.1 & 20.2)
- Considered Good 26,985.77 - 18,973.75 -
- Credit Impaired 225.36 - 227.83 -
Less: Impairment 225.36 - 227.83 -
26,985.77 - 18,973.75 -
F. Prepaid Expenses
Prepayments - Mobilisation Charges - - - 8.97
Prepayments - Leasehold Land (Note No. 186.12 205.46 187.27 118.91
8.2)
 ANNUAL REPORT
2020-21

As at As at
Particulars March 31, 2021 March 31, 2020
Non Current Current Non Current Current
Other prepaid expenses 5,155.46 3,573.75 3,422.69 3,853.20
Prepaid expenses for underlift quantity - 165.13 - 101.29
5,341.58 3,944.34 3,609.96 4,082.37
G.Other Assets
- Considered Good 733.14 1,374.61 5.34 1,096.71
- Credit Impaired - 41.39 - 41.39
Less: Impairment - 41.39 - 41.39
733.14 1,374.61 5.34 1,096.71

Consolidated Financial Statements

Total Other assets 63,883.55 124,661.91 47,368.22 105,344.24

20.1 In respect of subsidiary OVL, the Company has participating interest (PI) in development project Area -1,
Mozambique. As per the carry agreement, the Company is financing expenditure in the project for the
national oil company (“carried interest”), which is shown under category Unsecured, Considered Good.

The Company also has participating interest (PI) in Blocks 5A South Sudan*, SS-04 Bangladesh, SS-09
Bangladesh, EP-3 Myanmar and B-2 Myanmar. As per the carry agreements in respect of these exploratory
blocks the carried interest during the exploratory period will be refunded in the event of commercial
production from the project. The same is shown above as unsecured, considered as credit impaired.

*Block 5A is a producing block where there was a stoppage of production due to force majeure like
condition.

20.2 In respect of subsidiary OVL, total impairment recognised against the amount of carried interest pending
commencement of production in respect of Block 5A South Sudan as at March 31, 2021 is `79.58 million
(previous year: `81.73 million). Impairment for `145.78 million (previous year: `146.10 million) has been
recognised in respect of SS-04 Bangladesh, SS-09 Bangladesh, EP-3 Myanmar and B-2 Myanmar being
under exploration period, there is no certainty of commercial discovery.

20.3 In respect of subsidiary OVL, capital advance includes `208.25 million paid as Conversion fees to Delhi
Development Authority (DDA) for conversion of leasehold land to freehold land.

20.4 In respect of subsidiary OVL, other current assets includes `160.70 millions, which represents the impact
of underlifted oil quantity by the company during the year and the same would be settled in kind in future.
533
20.5 In respect of subsidiary MRPL, Deposits includes `2,125.25 million relating to an appeal in the matter of
classification of Reformate import pending before Hon’ble CESTAT wherein, basis the Company’s early
hearing application, Hon’ble CESTAT has ordered for out of turn hearing in this matter. Due to outbreak
of Covid-19, presently, the Hon’ble CESTAT has decided to hear the matter through video conferencing
platform and the same is expected to be held and concluded with in a year.

20.6 In respect of subsidiary MRPL, during the previous year ended March 31, 2020, the Company had
exercised option under “Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019” announced under
“Finance Act 2019” which was effected from September 1, 2019 to January 15, 2020. During the current
financial year ended March 31, 2021, pursuant to the scheme and based on approval of the Designated
Authorities, upon receipt of discharge certificate, an amount of `2.07 million has been offset against pre-
 THE UNSTOPPABLE
ENERGY SOLDIERS
deposit. Further, an amount of `0.24 million has 20.10 Movement of Impairment
been charged to the Statement of Profit and (` in million)
Loss in the current financial year ended March
Particulars Year Year
31, 2021.
ended ended
20.7 In respect of subsidiary PMHBL, upon Payment March March
of Allottment Consideration the Company has 31, 2021 31, 2020
been given possession of land at 7 different Balance at beginning 4,898.90 3,920.98
locations. The Company is yet to enter into of the year
lease cum sale Agreement with KIADB for these Recognized during the 688.63 1,008.86
lands. Hence the amount is not yet capitalised year
as freehold land.
Write back during the (374.41) (217.89)
20.8 In respect of subsidiary HPCL, deposits with year
Customs includes an amount of `805.60 Other adjustments (61.11) 186.95
million which has been carried in the books as Balance at end of the 5,152.01 4,898.90
receivable towards Custom Duty refund claims year
filed relating to the period 1992-1997. As per
the assessment made by the management, 20.10.1 Group’s subsidiary ONGC Videsh Limited
the refund is legally tenable; management is has determined its functional currency as US$.
continuing to pursue the matter with Authorities Adjustments includes net effect of exchange
for early settlement of these claims. differences as at March 31, 2021 of ` (6.04)
million (as at March 31, 2020 `18.55 million)
20.9 In respect of subsidiary HPCL, during the year, on account of translation of the consolidated
Employee’s PF Trust has been provided with financial statements of the ONGC Videsh
reimbursable advance of `2,430.00 million by Limited from US$ to Group’s presentation
the Corporation. currency “`”. Refer Note No.3.21 and 5.1 (a).

534

24x7 operations at the control room of Onshore Gas Terminal of

ONGC’s HP-HT Asset in Kakinada, AP
 ANNUAL REPORT
2020-21
21 Inventories
(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
Raw Materials (Including Condensate)
-on hand 47,148.10 27,614.98
-in Transit 20,058.80 17,050.08
67,206.90 44,665.06
Finished Goods (Including Carbon Credits) (Note No. 124,234.17 85,489.42
21.1, 21.2 and 21.3)
Less : Impairment for Stock Loss 5.91 5.91
124,228.26 85,483.51
Traded Goods 141,737.06 87,555.60
Stores and Spares
-on hand 99,782.22 98,609.75

Consolidated Financial Statements

-in transit 2,779.66 9,171.65
Less: Impairment for non-moving items 11,146.94 10,133.28
91,414.94 97,648.12

Semi Finished Goods 20,739.89 14,587.04

Unservicable Items 406.21 572.70
Total 445,733.26 330,512.03
21.1 In respect of the company, this includes an amounting to `172.51 million for the year. This
amount of `5.69 million (as at March 31, has an impact in future periods also, estimation
2020 `5.50 million) in respect of 330,484 nos. of which is impracticable
(Previous year 330,484 nos.) Carbon Credits 21.4 COVID-19 outbreak conditions were existing on
which are valued at net realisable value. There the reporting date March 31, 2021, however due
are no CERs under certification. During the year to recovery of crude oil prices back to normal,
`104.53 million (Previous year `82.20 million) there is no impact of COVID-19 outbreak on
and `28.19 million (Previous year `32.12 million) the value of closing stock of inventory as at
have been expensed towards Operating & March 31, 2021. During the Previous year the
maintenance cost and depreciation respectively price realized of inventory post reporting period
for emission reduction equipment. provided evidence of the Net realisable value of
21.2 In respect of the company, inventory amounting inventories at the end of the period. Accordingly,
to `268.55 million (as at March 31, 2020 subsequent reduction in selling prices were
`6,581.49 million) have been valued at net realizable considered in arriving at the net realisable 535
value of `99.51 million (as at March 31, 2020 value as at March 31, 2020 as the condition of
`4,046.04 million). Consequently, an amount of COVID-19 existed as at March 31, 2020 which
`169.04 million (as at March 31, 2020 `2,535.45 had caused reduction in the selling prices,
million) has been recognized as an expense this had resulted in reduction in the value by
in the Statement of Profit and Loss under `1,272.19 million as at March 31, 2020.
Note No. 40. 21.5 In respect of subsidiary MRPL, the cost of
21.3 During the year, the company has excluded the inventories recognized as an expense includes
adjustment of Basic sediment and water (BS&W) `300.56 million (Previous Year `11,212.40
at certain storage locations, where the BS&W million) in respect of write down of inventories
is within the permissible limit, for the purpose to net realisable value. There has been no
of valuation of closing stock. This change in reversal of such write down in current year and
estimate of BS&W has resulted in an increase in previous year.
the value of the closing stock of finished goods
 THE UNSTOPPABLE
ENERGY SOLDIERS
21.6 In respect of subsidiary HPCL, the write-down 22.1 In respect of Subsidiary HPCL, bonds valuing
including reversals, if any, of Inventories to `14,760.00 million (31.03.2020: `14,760.00
net realisable value during the financial year million) comprising 7.59 % G - Sec Bonds
amounted to `1,222.40 million (as at March 31, of `1,850.00 million (31.03.2020: `1,850.00
2020: `10,029.30 million) for the Corporation. million), 7.72 % G - Sec Bonds of `8,360.00
The write downs and reversal are included in cost million (31.03.2020: `8,360.00 million), 8.33 %
of materials consumed, changes in Inventories
G - Sec Bonds of `1,800.00 million (31.03.2020:
of finished goods, stock-in-trade and work in
`1,800.00 million) and 8.15 % G - Sec Bonds
progress.
of `2,750.00 million (31.03.2020: `2,750.00
21.7 In respect of subsidiary HPCL, as on
million), have been pledged with Clearing
31.03.2021, the Group has an inventory of
Non-Solar Renewable Energy Certificates Corporation of India Limited against Triparty
numbering 35,041 Units (31.03.2020: 69,256), Repo Dealing System Loan.
available for Sale after earmarking a requisite
22.2 Disclosure towards Cost / Market Value
quantity already for captive consumption.
The revenue from Certificates is recognized (` in million)
as and when the same are sold. The Central
Particulars As at As at
Electricity Regulatory Commission has fixed
March 31, March 31,
a floor price of ` NIL and a ceiling price of
2021 2020
`1000/- per certificate in which range, it could
be sold in Indian Energy Exchange Ltd., (a) Aggregate 54,175.73 53,448.62
wherein it is traded. Aggrieved by the decision amount of Quoted
of NIL floor price, Green Energy Association Investments (Market
has filed a petition in the Appellate Tribunal Value)
for Electricity (APTEL) and Tribunal has halted
trading of these Certificates, until final disposal (b) Aggregate 52,672.57 52,672.57
of the petition. amount of Quoted
21.8 In respect of subsidiary OVL, in case of joint Investments (Cost)
operators where the property in crude oil
produced does not pass on upto a specific (c) Aggregate amount - -
delivery point, the stock of crude oil till such of Unquoted
delivery point is not recognized by the Company. Investments (Cost)
21.9 In respect of subsidiary OVL, stores and spares
(net of allowance for obsolete / non-moving 23 Cash and Cash Equivalents
inventories) includes `8,652.00 million (previous (` in million)
year 8,451.96 million) which represents the
company’s share in overseas joint operations. Particulars As at As at
536 March 31, March 31,
22 Investments – Current 2021 2020
(` in million)
Balances with Banks 22,797.54 16,912.03
Particulars As at As at
March 31, March 31, Cash on Hand 53.54 27.49
2021 2020
Bank Deposit with 17,342.61 30,866.10
Financial assets carried
original maturity up to 3
at fair value through
month
profit or loss
(a) Investments in GOI 54,175.73 53,448.62 Total Cash and cash
Bonds (Note No. 22.1) equivalents 40,193.69 47,805.62
Total 54,175.73 53,448.62
 ANNUAL REPORT
2020-21
23.1 In respect of subsidiary OVL, cash on hand amounting to `8.49 million have been adjusted
represents cash balances held by overseas resulting in a decrease in bank balance.
branches in respective local currencies and 23.4 In respect of subsidiary OVL, cash and cash
includes `1.49 million held by imprest holders equivalents include `3,447.72 million (as at March
(as at March 31, 2020 `1.42 million). 31, 2020 `5,927.26 million) which represents the
23.2 In respect of subsidiary OVL, the deposits company’s share of cash and bank balances in
maintained by the Company with banks overseas joint opeartions accounted for based
comprise of short term deposits, which can be on the books of the respective operators located
withdrawn by the Company at any point without outside India
prior notice or penalty on the principal. 23.5 In respect of subsidiary OVL, balance with bank
23.3 In respect of subsidiary OVL, balances with bank includes remittances in transit which represent
includes amount held by overseas branches amounts transferred by subsidiary ONGC
in Libya which are restricted for use as at 31 Videsh Singapore Limited and not received in
March 2021 `0.72 million (as at March 31, 2020 the company’s bank account as at year end.
`10.25 million). Based on old records found This amount was received by the company
during current year, liabilities of Libya branch subsequent to the year end.

Consolidated Financial Statements

24 Other Bank Balances
(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
Other bank deposits for original maturity more than 28,632.75 46,295.53
3 months upto 12 months (Note No. 24.1)
Unclaimed dividend account (Note No. 24.2) 559.47 514.29
Bank balance towards Dividend payment - 83.31
Deposits in escrow account (Note No. 24.3) 1,515.26 1,444.20
Bank deposits under lien 0.09 0.09
Other restricted bank balances (Note No. 24.4) 1,021.45 259.32
Total Other bank balances 31,729.02 48,596.74

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

24.2 Amount deposited in unclaimed dividend account is earmarked for payment of dividend and cannot be
used for any other purpose. No amount is due for deposit in Investor Education and Protection Fund.
537
24.3 Matter of Dispute on Delivery Point of Panna-Mukta gas between Government of India (GoI) and BG
Exploration and Production India Limited (BGEPIL) along with Reliance Industries Limited (RIL) and the
Company (PMT JO Partners) arose due to differing interpretation of relevant PSC clauses. According to the
PMT JO Partners, Delivery Point for Panna-Mukta gas is at Offshore, however, Ministry of Petroleum and
Natural Gas (MoP&NG), GoI and GAIL (India) Limited (GAIL) maintained that the delivery point is onshore
at Hazira. The gas produced from Panna-Mukta fields was transported through Company’s pipelines.
Owing to the delivery point dispute neither the seller (PMT JO) nor the buyer of gas (GAIL) was paying any
compensation to the Company for usage of its pipeline for gas transportation.

Hon’ble Gujarat High Court decided that the Panna Mukta oil fields from where the movement of goods
is occasioned fall within the customs frontiers of India. Consequently, the sale of goods cannot be said
 THE UNSTOPPABLE
ENERGY SOLDIERS
to have taken place in the course of import of 25 Assets classified as held for sale
goods into the territory of India. Accordingly
(` in million)
the Hon’ble Gujarat High Court has determined
that the Delivery Point for Panna-Mukta gas is Particulars As at As at
at Offshore. The State Government of Gujarat March 31, March 31,
has filed a petition with the Hon’ble Supreme 2021 2020
Court of India against the decision of Hon’ble Project Surplus and 163.09 141.34
Gujarat High Court. Since the said matter of other assets (Note No.
determination of delivery point is pending with 7.6.5 & 25.1)
the Hon’ble Supreme Court of India, an amount
of US $ 51.37 million (previous year US $ 48.67 Total Assets held for 163.09 141.34
million) equivalent to `3,752.80 million (previous sale
year `3,653.19 million) for the PMT JO including 25.1 In respect of subsidiary PMHBL, company
Company’s Share US $ 20.74 (previous year intends to dispose of surplus materials used for
US$ 19.24 million) equivalent to `1,515.26 million the pipeline laying project, it no longer utilizes in
(previous year `1,444.20 million) is maintained the next 12 months. These materials are located
in the escrow account by the PMT JO Partners. at various project sites and were purchased
24.4 In respect of subsidiary HPCL, other restricted for use during construction of pipeline. Efforts
bank balances include balances earmarked with are underway to dispose of the project surplus
banks for share buy back amounting to `625.00 materials to Oil Companies. The Management of
million (Previous year Nil) the Group expects that, the fair value (less cost
to sell) is higher than the carrying amount.

26 Equity Share Capital

(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
Equity Share Capital 62,901.39 62,901.54
62,901.39 62,901.54
Authorised:
30,000,000,000 Equity Shares of `5 each 150,000.00 150,000.00
(as at March 31, 2020: 30,000,000,000 Equity Shares of `5 each)
Issued and Subscribed:

538 12,580,279,206 Equity Shares of `5 each 62,901.39 62,901.59

(as at March 31, 2020: 12,580,317,150 Equity Shares of `5 each)
Fully paid equity shares:
12,580,279,206 Equity Shares of `5 each 62,901.39 62,901.39
(as at March 31, 2020: 12,580,279,206 Equity Shares of `5 each)
Add: Shares forfeited (Refer note no. 26.6) - 0.15
Total 62,901.39 62,901.54
 ANNUAL REPORT
2020-21
26.1 Reconciliation of equity shares outstanding at the beginning and at the end of the reporting period:
(` in million)
Particulars Number of shares Amount
in million
Balance at April 01, 2019 12,580.28 62,901.39
Changes during the year - -
Balance as at April 01, 2020 12,580.28 62,901.39
Changes during the year - -
Outstanding as at March 31, 2021 12,580.28 62,901.39

26.2 Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of `5 per share. Each holder of equity

Consolidated Financial Statements

shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

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

26.3 The Company had allotted 4,277,745,060 number of fully paid Bonus shares on December 18, 2016 in the
ratio of one equity share of `5 each fully paid up for every two existing equity shares of `5 each fully paid up.

26.4 The Board of Directors of the Company, at the 312th meeting held on December 20, 2018 approved the
proposal for buy-back of equity shares of the Company upto 252,955,974 fully paid-up equity shares at
the price of `159/- per equity share payable in cash for an aggregate consideration not exceeding `40,220
million. The buy-back offer worked out to 2.50% of the net-worth of the Company as on March 31, 2017
and 2.34% as on March 31, 2018. The Company has completed the buy-back of 252,955,974 fully paid-up
equity shares on February 22, 2019.

Upon completion of the buy-back in 2018-19, the number of paid-up equity share capital of the Company
stands reduced from 12,833,235,180 (`64,166.17 million) to 12,580,279,206 (`62,901.39 million).
26.5 Details of shareholders holding more than 5% shares in the Company are as under:

As at March 31, 2021 As at March 31, 2020

Name of equity share holders No. in No. in 539
% holding % holding
million million
President of India 7,599.61 60.41 7,599.61 60.41
Life Insurance Corporation of India 1,367.36 10.87 1,192.19 9.48
Indian Oil Corporation Limited 986.89 7.84 986.89 7.84

26.6 During the year, 18,972 equity shares of `10 each (equivalent to 37,944 equity shares of `5 each) which
were forfeited in the year 2006-07 were cancelled w.e.f November 13, 2020 and accordingly the partly
paidup amount of `0.15 million against these shares has been transferred to the Capital Reserve.
 THE UNSTOPPABLE
ENERGY SOLDIERS
27 Other Equity excluding non-controlling interest
(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
Capital Redemption Reserve 1,733.72 1,364.60
Other Capital Reserve- Common Control (354,420.79) (354,420.79)
Capital reserves 614.79 614.47
Legal Reserve 28,582.17 56,017.85
Debenture Redemption Reserve 41,253.22 65,686.61
Exchange difference on translating the financial statements of 143,115.41 150,023.03
foreign operations
Foreign Currency Monetary item Translation difference Account - -
Retained Earnings 246,089.51 152,455.95
General Reserve 1,937,894.92 1,840,136.28
Reserve for equity instruments through other comprehensive 102,291.33 77,221.27
income
Cash Flow Hedge Reserve (245.78) (954.78)
Total Other equity 2,146,908.50 1,988,144.49

(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
A. Capital Redemption Reserves (Note No.27.7)
Balance at beginning of year 1,364.60 1,364.60
Transfer from General reserve# (Note No.4(c)) 369.12 -
Balance at end of year 1,733.72 1,364.60

B. Capital reserves (Note No. 27.1 & 27.8)

Balance at beginning of year 614.47 614.47
Transfer during the year 0.17 -
540 Cancellation of forfeited shares (Note No. 26.6) 0.15 -
Balance at end of year 614.79 614.47

C. Legal Reserve
Balance at beginning of year 56,017.85 56,017.85
Transfer to retained earnings (27,435.68) -
Balance at end of year 28,582.17 56,017.85
 ANNUAL REPORT
2020-21

Particulars As at As at
March 31, 2021 March 31, 2020
D. Debenture Redemption Reserve (Note No. 27.9 & 27.10)
Balance at beginning of year 65,686.61 65,841.53
Transfer from retained earnings 173.07 2,430.63
Transfer to general reserve (24,606.46) (2,585.55)
Balance at end of year 41,253.22 65,686.61

E. Exchange difference on translating the financial

statements of foreign operations (Note No. 27.11 & 64)
Balance at beginning of year 150,023.03 141,320.26
Adjustment during the year (6,907.62) 8,702.77
Balance at end of year 143,115.41 150,023.03

Consolidated Financial Statements

F. Foreign Currency Monetary item Translation difference
Account (Note No.27.12)
Balance at beginning of year - (14.92)
Generated During the Year - (4.01)
Amortization - 18.93
Balance at end of year - -

G. Retained Earnings (Note No.64)

Balance at beginning of year 152,455.95 192,165.28
Add:
Profit after tax for the year 162,486.88 108,035.97
Other comprehensive income net of income tax (888.87) (3,691.47)
Adjustment to Non Controlling Interest (Note No.27.6) 2,076.69 -
Transfer from Legal Reserve 27,435.68 -
Equity accounting adjustments w.r.t JVs/Associates (1,808.57) (3,999.32)
Less:
541
Adjustments due to inter group holding of Investment (1,572.40) 2,433.22
Other Adjustments (1,276.74) (1,310.22)
Payments of dividends (Note No. 27.4) 22,856.56 72,488.41
Tax on dividend - 13,808.60
Transfer to general reserve 75,487.76 50,216.26
Transfer to DRR 173.07 2,418.24
Balance at end of year 246,089.51 152,455.95
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars As at As at
March 31, 2021 March 31, 2020
H. General Reserve (Note No. 27.3)
Balance at beginning of year 1,840,136.28 1,788,382.79
Add: Transfer from retained earnings 75,487.76 50,216.26
Add: Transfer from DRR 24,606.46 2,585.55
Less: Effect of buy back of shares# (Note No.4(c)) 1,966.46 -
Less: Transfer to CRR# (Note No.4(c)) 369.12 -
Less: Dividend declared - -
Less: Tax on dividend - 1,048.32
Balance at end of year 1,937,894.92 1,840,136.28

I. Reserve for equity instruments through other

comprehensive income (Note No. 27.2)
Balance at beginning of year 77,221.27 200,362.32
Fair value gain/(loss) on investments in equity instruments 27,027.73 (131,172.98)
Income tax on fair value gain/(loss) on investments in equity (1,957.67) 8,031.93
instruments
Balance at end of year 102,291.33 77,221.27

J. Other Capital Reserve- Common Control (Note No.

27.5)*
Balance at beginning of year (354,420.79) (353,907.90)
Further acquisition of shares by Parent entity - (512.89)
Balance at end of year (354,420.79) (354,420.79)
K. Cash Flow Hedge Reserve (Note No. 27.13 & 27.14)
Balance at beginning of year (954.78) 2.04
Effective Portion of Gains/(loss) in a Cash Flow Hedge 620.60 (956.82)
Reclassification to Profit and loss 88.40 -
Balance at end of year (245.78) (954.78)
542 Total Other equity 2,146,908.50 1,988,144.49
* on account of subsidiaries under common control. #in respect of buy back of shares by subsidiary HPCL.

27.1 In respect of the Company, includes `159.44 million (previous year `159.44 million) as assessed value of
assets received as gift.

27.2 The Company has elected to recognize changes in the fair value of certain investments in equity securities
in other comprehensive income. This reserve represents the cumulative gains and losses arising on
the revaluation of equity instruments measured at fair value through other comprehensive income. The
company transfers amounts from this reserve to retained earnings when the relevant equity securities are
disposed off.
 ANNUAL REPORT
2020-21
27.3 General Reserve is used from time to time 27.9 In respect of subsidiary OVL, the Debentures
to transfer profits from retained earnings for Redemption Reserve position for above is as
appropriation purposes, as the same is created under:-
by transfer from one component of equity to (` in million)
another.
Particulars As at As at
27.4 The amount that can be distributed by the March 31, March 31,
Company as dividends to its equity shareholders 2021 2020
is determined considering the requirements Unsecured 4.625% 10 12,299.86 12,299.86
of the Companies Act, 2013 and the dividend year US$ Bonds - US$
distribution policy of the Company. 750 million
On February 13, 2021, the Company had Unsecured 3.75% 10 12,153.02 12,153.02
declared an interim dividend of `1.75 per share year US$ Bonds - US$
(35%) which has since been paid. 500 million
Unsecured 2.75% 7 12,946.68 12,946.68
In respect of the year ended March 31, 2021,
year EUR Bonds - EUR

Consolidated Financial Statements

the Board of Directors has proposed a final
525 million
dividend of `1.85 per share (37%) be paid on
fully paid-up equity shares. This final dividend Unsecured 3.25% 5 - 24,606.46
shall be subject to approval by shareholders at year US$ Bonds - US$
the ensuing Annual General Meeting and has 750 million
not been included as a liability in these financial Total 37,399.56 62,006.02
statements. The proposed equity dividend is
payable to all holders of fully paid equity shares. 27.10 In respect of subsidiary OVL, Debenture
The total estimated equity dividend to be paid is redemption reserve is created by the company
`23,273.52 million. out of the Retained earnings for the purpose
of redemption of Debentures / Bonds when
27.5 Represents common control reserve on account they are due for redemption. This reserve
of HPCL acquisition in the year 2017-18 and remains invested in the business activities of
further acquition of shares of PMHBL during the company.
the year being an entity under common control
(refer Note No. 3.4) 27.11 Group’s subsidiary ONGC Videsh Limited has
determined its functional currency as US$.
27.6 Represents adjustments to Non Controlling Exchange differences in translating the financial
Interest on account of changes in effective statements from functional currency USD ($) to
group holding due to buy back of shares by presentation currency INR (`) is recognised as
subsidiary HPCL and sale of shares of step an item of Other Comprehensive Income that
down subsidiary OMPL to subsidiary MRPL. will be reclassified to profit or loss. Refer Note
(refer Note No. 4(c)&4(e)) No. 3.21 and 5.1 (a). 543
27.7 In respect of subsidiary, MRPL, the company 27.12 In respect of subsidiary HPCL balance
created Capital Redemption Reserve on appearing in “Foreign Currency Monetary Item
Redemption of Preference Share Capital of Translation Difference Account” represents
`91.86 Million in the financial years 2011-12 and exchange rate variation on loan taken for
2012-13. acquisition of non-depreciable assets,
amortized over loan period.
27.8 In respect of subsidiary OVL, capital reserve
is recognized by the Company in respect of 27.13 In respect of subsidiary HPCL, Cash flow
gains on the sale of a part of the participating Hedge Reserve represents the cumulative
interest in respect of Block 06.1, Vietnam where effective portion of gains or losses arising on
the consideration received for partial farm out in changes in fair value of designated hedging
unproved property was not higher than the total instruments entered into for cash flow hedges.
cost. The cumulative gain or loss on such changes
 THE UNSTOPPABLE
ENERGY SOLDIERS
are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. Such
gains or losses will be reclassified to statement of profit and loss in the period in which the hedged item
occurs/affects statement of profit and loss or on termination, if any.

27.14 In respect of subsidiary MRPL, the cash flow hedging reserve represents the cumulative effective portion of
gains or losses arising on changes in fair value of designated portion of hedging instruments entered into
for cash flow hedges by Joint Venture, Shell MRPL Aviation Fuels and Services Limited. The cumulative
gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are
recognised and accumulated under the heading cash flow hedging reserve will be reclassified to profit or
loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the
non-financial hedged item.

28 Non-controlling interests (` in million)

Particulars As at As at
March 31, 2021 March 31, 2020
Balance at beginning of year (Note No.64) 184,057.39 182,734.51
Share of profit for the year 50,947.58 6,526.62
Share of OCI 753.01 (3,233.59)
Dividend Paid to NCI (8,068.68) (7,348.34)
Dividend Tax - (1,510.48)
Effect of buy back of shares# (Note No.4(c)) (17,896.19) -
Change in NCI due to acquisition/Disposal 5,497.32 1,576.20
Others 867.56 5,312.47
Balance at end of year 216,157.99 184,057.39

#in respect of buy back of shares by subsidiary HPCL

544

Notwithstanding the current challenges, ONGC maintained

critical supplies of oil and gas for the country
 ANNUAL REPORT
2020-21
28.1 Details of non-wholly owned subsidiaries of the Group that have material non-controlling interest:
(` in million)
Name of Place of Proportion of Profit (Loss) allocated Accumulated non-
subsidiary incorporation ownership interests to non-controlling controlling interests
and principal and voting rights held interests
place of by non-controlling
business interests

As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020

HPCL India 46.36% 48.89% 51,990.10 12,900.77 174,280.66 146,300.68

MRPL India 19.28% 19.71% (1,118.35) (6,610.67) 8,438.46 12,782.50

Consolidated Financial Statements

PMHBL India 23.19% 24.45% 126.68 424.76 1,407.48 2,162.58

Beas Incorporated 40.00% 40.00% (53.54) (2.30) 30,995.69 21,754.08

Rovuma in British
Energy Virgin Island,
Mozambique operations in
Limited Mozambique

Individually 1,035.70 1,057.56

immaterial
subsidiaries
with non-
controlling
interests

Total 216,157.99 184,057.39

28.2 Summarised financial information in respect of each of the Group’s subsidiaries that have material non-
controlling interest is set out below. The summarized financial information below represents amounts
before intragroup eliminations.
(` in million)
As at As at
1. HPCL
March 31, 2021 March 31, 2020 545

Non-current assets 899,926.09 792,901.31

Current assets 441,670.93 376,197.82

Non-current liabilities 336,985.31 288,812.25

Current liabilities 623,803.06 570,480.61

Equity attributable to owners of the Company 206,527.99 163,505.59

Non-controlling interests 174,280.66 146,300.68

 THE UNSTOPPABLE
ENERGY SOLDIERS

Year Ended Year Ended

Particulars
March 31, 2021 March 31, 2020
Revenue 2,732,216.88 2,894,236.65
Expenses 2,591,633.27 2,865,882.69
Profit (loss) for the year 106,628.94 26,387.34
Profit (loss) attributable to owners of the Company 54,638.84 13,486.57
Profit (loss) attributable to the non-controlling interests 51,990.10 12,900.77

Profit (loss) for the year 106,628.94 26,387.34

Other comprehensive income attributable to owners of the 785.40 (3,362.12)
Company
Other comprehensive income attributable to the non-controlling 748.92 (3,216.09)
interests
Other comprehensive income for the year 1,534.32 (6,578.21)
Total comprehensive income attributable to owners of the 55,424.24 10,124.45
Company
Total comprehensive income attributable to the non-controlling 52,739.02 9,684.68
interests
Total comprehensive income for the year 108,163.26 19,809.13
Dividends paid to non-controlling interests 7,263.71 7,002.97
Net cash inflow (outflow) from operating activities 178,296.92 54,999.70
Net cash inflow (outflow) from investing activities (122,790.12) (141,986.39)
Net cash inflow (outflow) from financing activities (47,091.93) 84,519.73
Net cash inflow (outflow) 8,414.87 (2,466.96)

(` in million)

As at As at
546 2. MRPL
March 31, 2021 March 31, 2020
Non-current assets 244,994.66 246,022.27

Current assets 102,299.55 59,631.09

Non-current liabilities 163,873.83 139,104.96

Current liabilities 140,939.37 104,269.40

Equity attributable to owners of the Company 34,042.55 49,496.50

Non-controlling interests 8,438.46 12,782.50

 ANNUAL REPORT
2020-21

Year Ended Year Ended

Particulars
March 31, 2021 March 31, 2020
Revenue 511,092.55 600,620.15
Expenses 520,281.26 654,668.05
Profit (loss) for the year (7,649.67) (40,425.17)
Profit (loss) attributable to owners of the Company (6,531.32) (33,814.50)
Profit (loss) attributable to the non-controlling interests (1,118.35) (6,610.67)
Profit (loss) for the year (7,649.67) (40,425.17)
Other comprehensive income attributable to owners of the 16.77 (71.65)
Company
Other comprehensive income attributable to the non-controlling 4.11 (17.26)

Consolidated Financial Statements

interests
Other comprehensive income for the year 20.88 (88.91)
Total comprehensive income attributable to owners of the (6,514.56) (33,886.15)
Company
Total comprehensive income attributable to the non-controlling (1,114.23) (6,627.93)
interests
Total comprehensive income for the year (7,628.79) (40,514.08)
Dividends paid to non-controlling interests - 345.37
Net cash inflow (outflow) from operating activities (28,020.01) 2,887.70
Net cash inflow (outflow) from investing activities (20,992.41) (14,486.54)
Net cash inflow (outflow) from financing activities 49,252.67 11,570.11
Net cash inflow (outflow) 240.25 (28.73)

(` in million)

As at As at
3. PMHBL
March 31, 2021 March 31, 2020
Non-current assets 2,950.04 4,763.66 547
Current assets 3,813.32 4,529.52
Non-current liabilities 334.47 323.83
Current liabilities 358.36 124.58
Equity attributable to owners of the Company 4,663.05 6,682.19
Non-controlling interests 1,407.48 2,162.58
 THE UNSTOPPABLE
ENERGY SOLDIERS

Year Ended Year Ended

Particulars
March 31, 2021 March 31, 2020
Revenue 1,112.80 1,624.77
Expenses 408.99 432.41
Profit (loss) for the year 518.12 882.72
Profit (loss) attributable to owners of the Company 391.44 457.96
Profit (loss) attributable to the non-controlling interests 126.68 424.76
Profit (loss) for the year 518.12 882.72
Other comprehensive income attributable to owners of the (0.09) (0.75)
Company
Other comprehensive income attributable to the non-controlling (0.03) (0.24)
interests
Other comprehensive income for the year (0.12) (0.99)
Total comprehensive income attributable to owners of the 391.35 457.21
Company
Total comprehensive income attributable to the non-controlling 126.65 424.52
interests
Total comprehensive income for the year 518.00 881.73
Dividends paid to non-controlling interests - -
Net cash inflow (outflow) from operating activities 2,352.56 (1,908.32)
Net cash inflow (outflow) from investing activities 341.29 288.30
Net cash inflow (outflow) from financing activities (3,310.51) (18.59)
Net cash inflow (outflow) (616.66) (1,638.61)

(` in million)

As at As at
4. Beas Rovuma Energy Mozambique Limited
March 31, 2021 March 31, 2020
Non-current assets 79,422.17 55,374.35
548
Current assets 2,704.10 1,385.38
Non-current liabilities - -
Current liabilities 4,637.05 2,374.52
Equity attributable to owners of the Company 46,493.53 32,631.13
Non-controlling interests 30,995.69 21,754.08
 ANNUAL REPORT
2020-21

Year Ended Year Ended

Particulars
March 31, 2021 March 30, 2020
Revenue 8.93 9.60
Expenses 142.76 15.35
Profit (loss) for the year (133.83) (5.75)
Profit (loss) attributable to owners of the Company (80.30) (3.45)
Profit (loss) attributable to the non-controlling interests (53.53) (2.30)
Profit (loss) for the year (133.83) (5.75)
Other comprehensive income attributable to owners of the - -
Company
Other comprehensive income attributable to the non-controlling - -
interests
Other comprehensive income for the year - -
Total comprehensive income attributable to owners of the (80.30) (3.45)

Consolidated Financial Statements

Company
Total comprehensive income attributable to the non-controlling (53.53) (2.30)
interests
Total comprehensive income for the year (133.83) (5.75)
Dividends paid to non-controlling interests - -
28.3 Represents exchange difference on account of translation of the consolidated financial statements of
subsidiary OVL prepared in OVL’s functional currency “United State Dollars” (US$) to presentation currency
“`”. Refer Note No. 3.21 and 5.1 (a).

29 Borrowings
(` in million)
As at March 31, 2021 As at March 31, 2020
Particulars
Non Current Current Non Current Current
Secured
(i) Term Loans
From Banks
External Commercial Borrowings (ECB) 11,577.78 - 23,066.68 -
(Note No.29.4)
Foreign Currency borrowing (FCTL) 26,300.00 - 27,182.19 -
(Note No.29.5)
From Others
549
Oil Industry Development Board (OIDB) 25,175.00 - 32,219.97 -
(Note No.29.6 & 29.22)
Deferred payment liabilities : VAT Loan 418.09 - 360.78 -
(Note No. 29.10)
Triparty Repo Dealing System Loan - 14,496.24 - -
(Note No. 29.25)
Others (Note No. 29.24) - - 2,187.27 13,999.42
(ii) Working Capital Loan from Bank - - - 8,632.30
(Note No.29.8)
(iii) Cash Credit from Bank - 25,510.27 - 31,168.95
 THE UNSTOPPABLE
ENERGY SOLDIERS
As at March 31, 2021 As at March 31, 2020
Particulars
Non Current Current Non Current Current
Unsecured
(i) Term Loans
From Banks
Foreign currency Term Loans 288,143.31 30,135.68 230,891.92 84,990.35
(Note No.29.1.1, 29.3, 29.11, 29.13 & 29.23)
Rupee Term Loans (Note No. 29.12) 9,868.16 69,208.78 - 93,171.30
From Related Party 307.60 - 297.92 -
(ii) Working Capital Loan from Banks 39,981.96 67,237.98 30,025.03 44,030.51
(Note No.29.1.2, 29.14, 29.15 & 29.16)
(iii) Foreign currency bonds 193,718.00 - 272,520.13 -
(Note No.29.1.3, 29.2, 29.20)
(iv) Non Convertible Debentures 186,137.73 - 100,574.51 -
(Note 29.1.5, 29.9, 29.21)
(v) Compulsorily Convertible Debentures 9,993.00 - 9,989.37 -
(Note No 29.7 & 64)
(vi) Commercial Paper (Net of Discount) - 83,827.73 - 34,331.35
(Note No 29.1.4, 29.17)
(vii) Loan Repayable on demand (Note No. 29.18) - 16,158.32 - 4,732.16
(viii) Bank Overdraft - 1.10 - -
Total borrowings 791,620.63 306,576.10 729,315.77 315,056.34
29.1 In respect of the Company:

29.1.1 The outstanding Foreign Currency Term Loans of US$ 1,126 million as on March 31, 2020 were due for
repayment in July, 2020 for US$ 300 million and in December, 2020 for US$ 826 million. The outstanding
loans have been accordingly refinanced during July 2020 (US$ 300.00 million) and December 2020
(US$ 831.53 million) by availing foreign currency term loans from banks / institution. These loans have
been partly repaid during the year.

The details of Foreign Currency Term Loans (FCTL) / Foreign Currency Non-Resident (Bank) Loans
(FCNR-B) outstanding:

As at March 31, 2021

Sl. US$ in Interest Rate p.a. (Payable

` in million Terms of Repayment
no. million monthly)

550 1. 410.06 30,135.68 Upto December 9, 2021 1Month LIBOR + 0.71 %

As at March 31, 2020

Sl. As at March 31, 2020 Terms of Repayment Interest Rate (Payable

no. US$ in million ` in million monthly)
1. 450.00 33,965.97 Upto December 26, 2020 1Month LIBOR + 1.00 %
2. 126.00 9,510.48 Upto December 26, 2020 1Month LIBOR + 0.99 %
3. 250.00 18,869.91 Upto December 29, 2020 1Month LIBOR + 0.99 %
4. 300.00 22,643.99 Upto January 29, 2021 1Month LIBOR + 0.90 %
(with rollover due on July
30, 2020)
Total 1,126.00 84,990.35
 ANNUAL REPORT
2020-21
29.1.2 Details of Working Capital Loans outstanding:

As at March 31, 2021

Sl. ` in million Interest Rate p.a. (payable monthly)

no.

1. 39,368.10 4.00%

As at March 31, 2020

Sl. ` in million Interest Rate p.a. (payable monthly)

No.

1. 10,000.00 5.87%

2. 12,140.00 6.00%

Consolidated Financial Statements

Total 22,140.00

29.1.3 Details of Foreign Currency Bonds outstanding:

As at March 31, 2021

Sl. Date of Issue Date of US$ in million ` in Interest Rate p.a.

no. repayment (at face value) million (payable half yearly)

1. December 05, December 05, 300.00 22,047.00 3.375 %

2019 2029

As at March 31, 2020

Sl. Date of Issue Date of US$ in million ` in Interest Rate p.a.

no. repayment (at face value) million (payable half yearly)

1. December 05, December 05, 300.00 22,644.00 3.375 %

2019 2029

29.1.4 Details of Commercial Papers outstanding:

As at March 31, 2021
551
Sl. Date of Issue Date of ` in million Interest Rate
no. repayment (at face value)

1. February 17, 2021 May 11, 2021 10,000.00 3.42%

2. March 01, 2021 April 26, 2021 7,500.00 3.18%

Total 17,500.00
 THE UNSTOPPABLE
ENERGY SOLDIERS
As at March 31, 2020

Sl. Date of Issue Date of ` in million Interest Rate

no. repayment (at face value)

1. March 06, 2020 June 02, 2020 10,000.00 5.38%

Total 10,000.00

29.1.5 Details of Non-Convertible Debentures outstanding as at March 31, 2021:

Sl. Particulars Date of Issue Date of ` in million Interest

no. repayment (at face Rate p.a.
value) (payable
half yearly)

1 6.40% ONGC 2031 Series August 11, April 11, 2031 10,000.00 6.40 %
II 2020

2 5.25% ONGC 2025 Series July 31, 2020 April 11, 2025 5,000.00 5.25 %
I

3 4.50% ONGC 2024 Series January 11, February 09, 15,000.00 4.50 %
IV 2021 2024

4 4.64% ONGC 2023 Series October 21, November 21, 11,400.00 4.64 %
III 2020 2023

Total 41,400.00

29.2 In respect of subsidiary OVL, details of Bonds (other than ` Currency)

(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
(i) US$ 750 million unsecured non-convertible Reg S 54,684.42 56,165.20
Bonds

552 (ii) US$ 500 million unsecured non-convertible Reg S 36,707.13 37,701.10
Bonds

(iii) EUR 525 million unsecured Euro Bonds - 43,156.87

(iv) US$ 600 million unsecured non-convertible Reg S 43,986.25 45,159.11

Bonds

(v) US$ 400 million unsecured non-convertible Reg S - 30,167.37

Bonds

Total 135,377.80 212,349.65

 ANNUAL REPORT
2020-21
The terms of above bonds are mentioned below:

Particulars Listed in Issue Denomination Date Due Coupon

price of loan date of
issued maturities

(i) US$ 600 Singapore 99.810% US$ 200,000 27-Jul-16 27-Jul-26 3.750%,
million Exchange and integral payable semi-
unsecured (SGX) multiples of annually in
non- US$ 1,000 in arrears
convertible excess thereof.
Reg S Bonds

(ii) US$ 750 Singapore 99.454% US$ 200,000 15-Jul-14 15-Jul-24 4.625%,
million Exchange and integral payable semi-

Consolidated Financial Statements

unsecured (SGX) multiples of annually in
non- US$ 1,000 in arrears
convertible excess thereof.
Reg S Bonds

(iii) US$ 500 Singapore 99.950% US$ 200,000 07-May-13 07-May-23 3.75%,
million Exchange and integral payable semi-
unsecured (SGX) multiples of annually in
non- US$ 1,000 in arrears
convertible excess thereof.
Reg S Bonds

(iv) US$ 400 Singapore 100.000% US$ 200,000 27-Jul-16 27-Jan-22 2.875%,
million Exchange and integral payable semi-
unsecured (SGX) multiples of annually in
non- US$ 1,000 in arrears
convertible excess thereof.
Reg S
Bonds*

(v) EUR 525 Frankfurt 99.623% Euro 100,000 15-Jul-14 15-Jul-21 2.75%,
million Stock and multiples payable
553
unsecured Exchange of Euro 1,000 annually in
Euro Bonds* thereafter. arrears

*These bonds are repayable within one year and the same have been shown as “Current Maturities of Long
Term Debts” under Note No. 31.

There is no periodical put/ call option. The bonds are repayable in full (bullet repayment) on maturity date.
 THE UNSTOPPABLE
ENERGY SOLDIERS
29.3 In respect of subsidiary OVL, Term loan from banks

The term of term loan are given below:

As at March As at March Date of Term of

Particulars Coupon
31, 2021 31, 2020 Issue Repayment
US$ 1,000 million Term 72,681.61 74,649.72 March 30, Bullet repayment Libor +
loans(Refer note 29.3.1 2020 on March 30, 2025 0.95% payable
& 29.3.3) quarterly/half
yearly
US$ 500 million Term 36,487.79 37,475.82 July 12, Bullet repayment Libor +
loans(Refer note 29.3.2) 2019 on July 12, 2024 1% payable
quarterly/half
yearly
US$ 775 million - 57,757.71 November Bullet repayment Libor +
(Previous year US$ 27, 2015 on November 27, 0.95% payable
1,775 million) Term 2020 quarterly
loans(Refer note 29.3.1)
US$ 500 million Term - 14,755.24 April 26, In 5 equal Libor +
loans(Refer note 29.3.5) 2017 instalments falling 0.76% payable
15, 27, 39, 51 and quarterly
60 months from the
drawdown date.

JPY 38 billion Term 25,076.86 26,348.16 April 26, In 3 equal Libor +

loans 2017 instalments falling 0.47% payable
due at the end of quarterly
(Refer note 29.3.5) Years 5, 6 and 7
from the drawdown
date.
US$ 700 million Long 50,928.57 - November Bullet repayment Libor +
Term loans(Refer note 27, 2020 on November 27, 1.45% payable
29.3.3 & 29.3.4) 2025 quarterly/half
yearly

185,174.83 210,986.65
554
29.3.1 US$ 1,775 Term loan had been obtained from a syndicate of commercial banks to refinance the term
loan taken to part finance acquisition of 10% stake in Area 1, Mozambique from Anadarko. US$ 1000
million was prepaid by refinance on 31.03.2020 (refer note 29.3.3). The balance amount of US$ 775
million was fully repaid by new loan of US$ 700 million (refer note 29.3.4) and US$ 75 through internal
accruals by 27.11.2020.
Previous year figure of `57,757.71 has been shown as Current maturities of long-term debt under head
Other Financial Liability (refer Note No.31).
29.3.2 The Term loan was obtained from a syndicate of commercial banks to part refinance the US$ 750 Million
Bonds matured in July 2019.
 ANNUAL REPORT
2020-21
29.3.3 The Term loan was obtained from a syndicate The above mentioned ECB Loans are secured
of commercial banks to part refinance the by the first charge on land and all property,
US$ 1775 Million Term Loan in March 2020. plant and equipment and second charge by
way of hypothecation on all movable property,
29.3.4 The Term loan was obtained from a syndicate
plant and equipment and all current assets.
of commercial banks to part repayment of the
balance amount of US$ 775 Million of the US$ 29.4.3 `9,463.91 million (as at March 31, 2020
1775 Million Term Loan facility on 27.11.2020. `9,777.57 million) is repayable within one year
29.3.5 ONGC Videsh has a step down wholly and the same has been shown as “Current
owned subsidiary ONGC Videsh Vankorneft Maturities of Long Term Debts” under Note
Pte Ltd (“OVVL”). OVVL raised two separate No.31.
syndicated bridge loans to meet the acquisition
29.4.4 Repayment schedule of ECB loan is as follows:
cost of 26% shares of JSC Vankorneft (15%
in May 2016 and 11% in October 2016). (` in million)
Subsequently, the acquisition bridge loans
were part refinanced by two syndicated term
As at As at

Consolidated Financial Statements

loan facilities, availed on April 26, 2017 (i) Year of
March 31, March 31,
US$ 500 million facility (availed to the extent repayment
2021 2020
of US$ 491.74 million) and (ii) JPY 38 billion.
The outstanding amounts of US$ 196.7 million
as on 31.03.2020 pertaining to the US$ 500 2020-21 - 9,785.66
million facility have been fully prepaid during
FY 2020-21. 2021-22 9,466.51 11,135.31
29.3.6 There is no periodical put/ call option. The Term 2022-23 7,847.54 8,112.10
loans are repayable in full (bullet repayment)
on maturity date. 2023-24 3,767.09 3,894.09
29.4 External Commercial Borrowing (ECB)
29.4.1 In respect of subsidiary MRPL, ECB taken are Total 21,081.14 32,927.16
US$ denominated loans and carries variable
rate of interest which is LIBOR (6 months) plus 29.5 In respect of subsidiary OMPL, details of
spread. Interest rate as at March 31, 2021 Foreign Currency Borrowing (FCTL)
is 1.24% and interest rate as at March 31, 29.5.1 During the financial year 2019-20 the
2020 was 2.90%. These are secured by first Subsidiary Company OMPL has availed
pari passu charge over immovable Property, Medium Term secured Foreign Currency
Plant & Equipment and first ranking pari Loan amounting to US$ 360 million.
passu charge over movable Property, Plant
& Equipment (including but not limited to 29.5.2 Foreign Currency Borrowing amounting to
Plant and Machinery, Spares, Tools, Furniture, US$ 360 million is having a tenor of eight 555
Fixture, Vehicles and all other Movable years with moratorium of 3 years and is
Property, Plant & Equipment) both present secured by way of first pari passu charge
and future.. on Fixed Assets of the Compnay.The loan
29.4.2 In respect of subsidiary OMPL, ECB taken are is repayable in 20 quarterly instalment and
US$ denominated loans and carries variable carries variable rate of interest which is six
rate of interest which is LIBOR (6 months) plus month Libor plus spread (Range of Interest
spread. Interest rate as at March 31, 2021 is rate as at March 31, 2021 is 2.60% to 2.63%
2.60% and interest rate as at March 31, 2020 and Range of Interest rate as at March 31,
was 4.46%. 2020 is 3.93% to 4.28%).
 THE UNSTOPPABLE
ENERGY SOLDIERS
29.5.3 Repayment schedule of FCTL is as follows: 29.7 In respect of subsidiary OMPL, details
(` in million) of Unsecured Compulsorily convertible
debentures (CCD’s)
Year of As at March As at March 29.7.1 The Subsidiary Company OMPL has allotted
repayment 31, 2021 31, 2020 1,000 Compulsorily Convertible Debentures
2022-23 2,924.60 3,023.20 (CCDs) of `10 million each on March 5, 2020
through private placement. Company has
2023-24 4,942.57 5,109.21 issued CCDs in 3 different series. Series
2024-25 5,264.28 5,441.76 I Debentures consists of `2,500 million
with Coupon Rate of 8.35% p.a. Series
2025-26 5,264.28 5,441.76 II Debentures consists of `2,500 million
2026-27 5,995.43 6,197.56 with Coupon Rate of 8.50% p.a. Series III
Debentures consists of `5,000 million with
2027-28 1,930.24 1,995.31 Coupon Rate of 8.75% p.a. Interest for all the
Total 26,321.40 27,208.80 three series of debentures to be served on
quarterly basis.
29.6 In respect of subsidiary MRPL, details of 29.7.2 Coupon Rate of Series I Debenture is subject
loan from Oil Industry Development Board to annual reset with interest rate linked to
(OIDB)
364 days Treasury bill. The interest rate has
29.6.1 Loan from OIDB taken by the Company been reset on March 5, 2021 from 8.35%
carries fixed rate of interest (Interest rate as at to 6.91% p.a.. Coupon rate for series II and
March 31, 2021 for `2,010.00 million (7.98%),
series III CCDs are fixed over the tenure of
`1,840.00 million (7.00%), `150.00 million
(7.50%), `450.00 million (7.11%) , `270.00 debentures.
million (7.03%) and `552.50 million (6.01%) 29.7.3 Repayment/Conversion Schedule of CCD is
and interest rate as at March 31, 2020 was as below :
7.00% to 7.98%. These are secured by way (` in million)
of first ranking pari passu charge by way of
hypothecation / mortgage only on property, Year of As at March As at March
plant & equipment / projects financed out of Repayment 31, 2021 31, 2020
loan proceeds of OIDB. 2022-23 10,000.00 10,000.00
29.6.2 `1,347.50 million (as at March 31, 2020 of Total 10,000.00 10,000.00
`670 million) is repayable within one year
and the same has been shown as “Current 29.7.4 The interest on one of the CCD Series I was
Maturities of Long Term Debts” (secured) on a floating rate. In March 2021, the interest
under Note No.31. rate on this CCD Series I was reduced by 144
29.6.3 Repayment schedule of OIDB loan is as basis points.
follows:
556 (` in million)
29.8 In respect of subsidiary MRPL, working capital
borrowings from consortium banks are secured
by way of first ranking pari passu charge by
Year of As at March As at March way of hypothecation of Company’s stocks
repayment 31, 2021 31, 2020 of Raw Material, Finished Goods, Stock-in-
Process, Stores, Spares, Components, Trade
2020-21 - 670.00 receivables, outstanding Money Receivables,
2021-22 1,347.50 1,347.50 Claims, Bills, Contract, Engagements,
Securities both present and future and further
2022-23 1,485.62 1,347.50
secured by second ranking pari passu charge
2023-24 1,485.62 1,347.50 over companies movable and immovable
2024-25 815.63 677.50 property (all Property, Plant & Equipment) both
present and future. Working capital borrowings
2025-26 138.13 - from banks in the form of overdraft facility
Total 5,272.50 5,390.00 against fixed deposits are secured by way of
hypothecation on original fixed deposits.
 ANNUAL REPORT
2020-21
The Subsidiary Company OMPL has working 29.9 In respect of subsidiary MRPL, details of “Non
capital loan from a bank is secured by way of Convertible Debentures”
hypothecation of Company’s current assets both
present and future and second pari passu charge Unsecured Redeemable Non-Convertible Fixed
over immovable property, plant and equipment. Rate Debentures (Privately Placed):

Sl. ISIN Face Value Date of As at Coupon Maturity

No. Per Debenture Allotment 31-03- Rate Amount Date
(`) 2021
1 INE103A08019 1,000,000 13-Jan-20 9,997.35 7.40% 10,000.00 12-Apr-30
2 INE103A08035 1,000,000 29-Jan-20 10,591.92 7.75% 10,600.00 29-Jan-30
3 INE103A08027 1,000,000 13-Jan-20 4,999.02 6.64% 5,000.00 14-Apr-23
4 INE103A08043 1,000,000 29-Dec-20 12,163.96 6.18% 12,170.00 29-Dec-25
Total 37,752.25 37,770.00

Consolidated Financial Statements

557

ONGC not only brings prosperity to the regions where it

operates, but also celebrates our country’s cultural diversity
 THE UNSTOPPABLE
ENERGY SOLDIERS
29.10 In respect of subsidiary MRPL, details of spread. (Interest rate as at March 31, 2021 is
“Deferred Payment Liabilities: VAT” 2.25% and Interest rate range as at March 31,
2020 is 3.92% to 3.93%).
29.10.1 Deferred payment liability against VAT Loan
represents amounts payable on account of 29.11.3 Repayment schedule of Foreign Currency
“Interest free loan” received from Government Term Loan (FCTL) is as follows:
of Karnataka. This interest free loan against (` in million)
VAT will be repayable from March 31, 2028.
As at As at
Year of
29.10.2 The benefit of a Government loan at a March 31, March 31,
repayment
below-market rate of interest is treated as a 2021 2020
government grant (Ind AS 20). The Interest 2022-23 10,967.25 11,337.00
free loan is recognized and measured in
accordance with Ind AS 109, Financial Total 10,967.25 11,337.00
Instruments. The benefit of the Interest free 29.12 In respect of subsidiary MRPL, Rupee
loan is measured as the difference between Term Loan from bank
the initial carrying value of the loan determined
in accordance with Ind AS 109, and the 29.12.1 The term loan from SBI taken by the Company
proceeds received. The benefit is accounted carries variable rate of interest which is three
for in accordance with this Standard. months MCLR plus spread (Interest rate as at
March 31, 2020 was 7.84%).
29.10.3 Deferred payment liabilities - VAT Loan are
secured by bank guarantees given by MRPL. Subsidiary company OMPL during the
financial year 2020-21 has availed Rupee
29.10.4 Repayment schedule of Deferred payment Term Loan amounting to `9,875.14 million on
liability VAT loan is as follows: unsecured basis having a tenor of 5 years
(` in million) with moratorium period of 3 years. The loan
As at As at is repayable in 8 quarterly installments and
Year of carries a variable interest rate which is G-Sec
March 31, March 31,
repayment linked lending rate (Interest rate as at March
2021 2020
31, 2021 is 6.25%) .
2027-28 132.61 132.61
2028-29 155.16 155.16 29.12.2 Nil (As at March 31, 2020 of `6,856.72
million) is repayable within one year and the
2029-30 197.76 197.76
same has been shown as “Current maturities
2030-31 208.53 208.53 of long-term debts (unsecured)” under Note
2031-32 322.83 322.83 No. 31.
2032-33 74.88 - 29.12.3 Repayment schedule of Term Loan from SBI
558 Total 1.091.77 1.016.89 is as follows:
(` in million)
29.11 In respect of subsidiary OMPL, details of
Foreign Currency Borrowing (FCTL) Year of As at As at
repayment March 31, March 31,
29.11.1 During the financial year 2019-20 the 2021 2020
Subsidiary Company OMPL has availed
Medium Term unsecured Foreign Currency 2020-21 - 6,856.72
Loan amounting to US$ 150 million.
2023-24 3,703.18 -
29.11.2 The Subsidiary Company OMPL has Foreign
2024-25 4,937.57 -
Currency Borrowing amounting to US$ 150
million is availed on unsecured basis having 2025-26 1,234.39 -
a tenor of three years and carries variable
rate of interest which is six month Libor plus Total 9,875.14 6.856.72
 ANNUAL REPORT
2020-21
29.13 In respect of subsidiary MRPL, Foreign denominated loans and carries variable rate
Currency Term Loan (FCNR): of interest which is three month Libor plus
spread and is repayable within one year from
29.13.1 FCNR (B) Capex Loan from SBI taken by the date of each disbursement.(`11,698.40
the company carries variable rate of interest million as at March 31, 2021 & `11,866.06
which is six months Libor plus spread million as at March 31, 2020)
(Interest rate as at March 31, 2021 is 1.70%).
29.16 In respect of subsidiary MRPL, Unsecured
29.13.2 Repayment schedule of Foreign Currency Bill discounting facility from State Bank of
Term Loan (FCNR) is as follows: India (SBI) against Non LC bill drawn on
(` in million) Subsidiary Company “ONGC Mangalore
Year of As at As at Petrochemicals Limited” (OMPL). (`766.48
repayment March 31, March 31, million as at March 31, 2021 & `6,324.45 as
2021 2020 at March 31, 2020)
2023-24 6,214.78 - 29.17 In respect of subsidiary MRPL, the
Total 6,214.78 - Commercial paper issued is unsecured fixed

Consolidated Financial Statements

rate short term debt instrument (`26,500
29.14 In respect of subsidiary MRPL, Working million as at March 31, 2021 & Nil as at March
capital Term Loan from Banks - ECB: 31, 2020)

29.14.1 External Commerical Borrowings taken by 29.18 Subsidiary Company OMPL has taken
the Company are US$ denominated loans Unsecured short term rupee loan as on
and carries variable rate of interest which is March 31, 2021 is for tenor of 6 to 7 months
six month Libor plus spread (Interest rate as and carries variable rate linked to RBI repo
at March 31, 2021 is 1.54% and interest rate rate and 3 month Treasury bill rate (Range of
as at March 31, 2020 was 2.37%). interest rate as on March 31, 2021 is 4.25% to
4.50% p.a.) and unsecured short term rupee
29.14.2 Repayment schedule of Working Capital loan loan as on March 31, 2020 was for tenor
ECB is as follows: of 3 months to 1 year and carried variable
(` in million) interest rate linked to overnight MCLR and
Year of As at As at one month MCLR (Range of Interest Rate as
repayment March 31, March 31, at March 31, 2020 is 7.50% to 7.60% p.a.).
2021 2020 (`16,158.32 million as at March 31, 2021 &
`4,732.16 million as at March 31, 2020)
2023-24 73.12 75.58
2024-25 29,172.88 30,156.42 29.19 The repayment schedules disclosed above
are based on contractual cash outflows and
2025-26 10,967.25 -
hence will not reconcile to carrying amounts
Total 40.213.25 30.232.00 of such borrowings which are accounted at 559
amortised cost.
29.15 In respect of subsidiary MRPL, Foreign
Currency Term Loan from bank are US$

In respect of Subsidiary HPCL,

29.20 Foreign currency Bonds

Particulars of Bonds Date of Issue Date of Repayment

US$ 500 million bonds (`36,461.75 million as at March 12th July 2017 July 12th 2027
31, 2021 & `37,719.51 million as at 31st March 31, 2020);
Interest Rate: 4% p.a. payable at Half Yearly
 THE UNSTOPPABLE
ENERGY SOLDIERS
29.21 Non Convertible Debentures

Coupon Rate of Date of

Particulars of Debentures
Interest Redemption

7.03% Non-Convertible Debentures (`13,997.61 million as at 7.03% p.a. April 12th

March 31, 2021 & `13,997.57 million as at 31st March 31, 2020) payable Annually 2030

5.36% Non-Convertible Debentures (`11,999.22 million as at 5.36% p.a. April 11th

March 31, 2021 & ` nil as at 31st March 31, 2020) payable Annually 2025

7.00% Non-Convertible Debentures (`19,998.11 million as at 7.00% p.a. August 14th

March 31, 2021 & `19,997.63 million as at 31st March 31, 2020) payable Annually 2024

8.00% Non-Convertible Debentures (`4,998.06 million as at March 8.00% p.a. April 25th
31, 2021 & `4,997.51 million as at 31st March 31, 2020) payable Annually 2024

4.79% Non-Convertible Debentures (`19,998.94 million as at 4.79% p.a. October 23rd

March 31, 2021 & ` nil as at 31st March 31, 2020) payable Annually 2023

6.38% Non-Convertible Debentures (`5,998.27 million as at 6.38% p.a. April 12th

March 31, 2021 & `5,997.49 million as at 31st March 31, 2020) payable Annually 2023

6.80% Non-Convertible Debentures (`29,998.51 million as at 6.80% p.a. December

March 31, 2021 & `29,997.71 million as at 31st March 31, 2020) payable Annually 15th 2022

29.22 Term Loans from Oil Industry Development Board (Secured)

Amount in ` million Range of Interest Rate

Repayable
during As at As at As at As at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
2020-21 - 1,811.90 - 7.72% -8.28%
2021-22 7,250.00 7,250.00 6.53% -8.28% 6.53% -8.28%
2022-23 7,500.00 7,250.00 5.68% -8.28% 6.53% -8.28%
2023-24 7,500.00 7,250.00 5.68% -8.28% 6.53% -8.28%
2024-25 6,000.00 5,750.00 5.68% -7.96% 6.53% -7.96%
2025-26 250.00 - 5.68% -5.68% -
Total 28,500.00 29,311.90
560
The loan has been secured with first charge on the facilities of Vishakh Refinery Modernisation Project,
Mumbai Refinery Expansion Project, Awa Salawas Pipeline, Manglore Hassan Mysore LPG Pipeline,
Uran-Chakan / Shikarpur LPG Pipeline & Rewari Mathura Kanpur Pipeline for a value of `174,378.50
million (as on March 31, 2020 `158,158.70 million). Of the loan amount, `7,250.00 million (as on March
31, 2020: `1,811.90 million) is repayable within one year and the same has been shown as “Current
Maturity of Long Term Borrowings” under Note No. 31.
29.23 Syndicated Loans from Foreign Banks (repayable in foreign currency)
With respect to Loan taken by Hindustan Petroleum Corporation Ltd.:
The company has availed Syndicated Loans from foreign Banks at fixed rate and/or 3 months floating
LIBOR plus spread (spread range: 100 to 155 basis point p.a.). These loans are taken for the period up
 ANNUAL REPORT
2020-21
to 5 years. Of the loan amount Nil (31.03.2020: `41,500.70 million) is repayable within one year and the
same has been included in ‘Current Maturities of Long Term Borrowings’ under Note No. 31.
With respect to Loan taken by Prize Petroleum International PTE Ltd.:
The secured bank loan bears interest at 1.2% + 6-month LIBOR per annum (2019-20: 1.2% + 6-month
LIBOR per annum), which ranged from 1.45% to 3.13% p.a. (2019-20: from 3.13% to 3.82% p.a.).The
bank loan is repayable on the 7th anniversary of the utilization date on 28th October 2023. Shares of the
Group in PPIPL have been pledged in favour of the lender.
29.24 Other Loans
With respect to Loan taken by HPCL Biofuels Ltd. (HBL)
Government Of Bihar (GOB) Soft Loan of `164.80 million was availed through SBI during FY 2015-16
with interest subvention to the extent of 10%. Four installments amounting to `30.60 million was paid
during FY 2020-21 (2019-20: `35.20 million) The Balance of GOB Soft Loan as on March 31, 2021 was
Nil (as on March 31, 2020 `30.60 million)
Term Loan of `3,088.00 million was availed through SBI during FY 2014-15. During the year 2020-21

Consolidated Financial Statements

the Term loan was paid in full in Two Installments by `2,439.50 million (2019-20: `223.90 million) in
September 2020. The Balance of Term loan as on 31.03.2021 was Nil (31.03.2020: `2,434.30 million).
Of the loan amount, Nil (as on March 31, 2020: `277.60 million) is repayable within one year and the
same has been shown as “Current Maturity of Long Term Borrowings” under Note No. 31.
29.25 Bonds valuing `14,760.00 million (31.03.2020: `14,760.00 million) comprising 7.59 % G - Sec Bonds of
`1,850.00 million (31.03.2020: `1,850.00 million), 7.72 % G - Sec Bonds of `8,360.00 million (31.03.2020:
`8,360.00 million), 8.33 % G - Sec Bonds of `1,800.00 million (31.03.2020: `1,800.00 million) and 8.15
% G - Sec Bonds of `2,750.00 million (31.03.2020: `2,750.00 million), have been pledged with Clearing
Corporation of India Limited against Triparty Repo Dealing System Loan.

30 Lease Liabilities
(` in million)
As at As at
Particulars March 31, 2021 March 31, 2020
Non Current Current Non Current Current
Lease Liabilities (Note No. 48) 96,462.02 44,795.69 80,148.65 51,552.18
Total 96,462.02 44,795.69 80,148.65 51,552.18
30.1 Movement of Lease Liabilities
(` in million)
561
Year Ended Year Ended
Particulars
March 31, 2021 March 31, 2020
Balance at beginning of the year 131,700.83 124,755.91
Recognized during the year 75,683.20 51,786.18
Unwinding of discount on lease liabilities 7,585.44 7,397.78
Payment during the year (64,501.56) (57,712.41)
Write back during the year (5,479.80) (14.04)
Revaluation of lease liabilities (3,577.27) 9,532.44
Effect of remeasurement / other adjustment (153.13) (4,045.03)
Balance at end of the year 141,257.71 131,700.83
 THE UNSTOPPABLE
ENERGY SOLDIERS
31 Other financial liabilities
(` in million)
As at March 31, 2021 As at March 31, 2020
Particulars Non Current Non Current
Current Current
Current maturities of long-term debt (Note No. 31.8 - 92,414.77 - 118,652.22
and 31.9)
Interest Accrued on borrowings 839.42 8,288.98 499.65 7,139.94
Unclaimed Interest on Matured Debentures (Note No. - - - 0.01
31.4)
Unclaimed Dividend (Note No. 31.3) - 310.11 - 264.50
Dividend Payable - - - 83.31
Derivative liabilities measured at FVTPL (Note No. - 923.72 1,932.44 795.06
31.6)
Liability for Capital Goods (Note No. 31.5) 64.03 49,874.79 64.03 52,492.89
Deposits from Suppliers and Contractors (Note No. 641.77 166,481.10 615.73 161,134.36
31.10)
Liability for Employees - 16,245.08 - 24,731.40
Liability for Post Retirement Benefit Scheme - 248.95 - 2,850.53
Cash Call Payable to JV Partners - 34,797.65 - 28,215.86
Liquidated Damages deducted from Parties - 27,817.39 - 25,144.64
Retention Money 1.68 17.64 1.68 18.41
Financial guarantee obligation (Note No. 31.1 and 64) 2.26 9.97 - 8.36
Unspent CSR Liability - 216.77 - -
Liability for Compulsory Convertible Debentures (Note 58,115.57 16,203.56 - 74,769.96
No. 31.2 & 64)
Bills Payable - 3,258.96 - -
Bonus payable for extension of Production sharing 2,875.30 1,004.36 3,898.30 1,031.56
agreement (Note No. 31.7)
Other Liabilities 326.57 42,479.60 7.31 45,713.50
Total other financial liabilities 62,866.60 460,593.40 7,019.14 543,046.51
31.1 This represents the fair value of fee towards financial guarantee issued on behalf of joint venture OPaL,
562 recognised as financial guarantee obligation with corresponding debit to deemed investment.

31.2 This represents the fair value of financial liability for Compulsory Convertible debentures issued by joint
venture OPaL.

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

31.4 Represents interest payable towards matured debentures.

31.5 Price Reduction Clause

In respect of subsidiary MRPL, liability for capital goods includes `242.28 million (as at March 31, 2020 of
`234.90 million) relating to amounts withheld from vendors pursuant to price reduction clause which will
be settled on finalisation of proceedings with such vendors. When the withheld amounts are ultimately
finalised, the related adjustment is made to the property, plant and equipment prospectively.
 ANNUAL REPORT
2020-21
31.6 In respect of subsidiary OVL, the Derivative liabilities as on March 31, 2021 includes liabilities of `905.32
million for forward contracts entered for EUR 525 million bond.
The company has entered into forward contracts covering Euro 199.50 million (in previous year Euro
199.50 million, upto March 2020) and option contract of Euro 52.50 million (in previous year Euro 52.50
million upto March 2020) out of the principal amount of 2.75% Euro 525 million Bonds 2021. As on
March 31, 2021, there is MTM loss position of `905.32 million (`1,932.44 million as on March 31, 2020)
for forward contracts which is reported as Derivative Liabilities and Marked to Market (MTM) position of
`33.76 million (previous year `44.44 million ) for option contracts which is reported as Derivative Assets.
31.7 In respect of subsidiary OVL, in respect of ACG, Azerbaijan project, participating interest (PI) is revised
to 2.31% from 2.7213% as per amended restated ACG Porduction Sharing Agreement (PSA), Amended
Joint Operating Agreemnet (JOA), and other related agreements / Head of Agreements (HOA) etc. with
effective date of January 1, 2017 for extension of the validity of ACG PSA upto December 2049 as jointly
agreed by all partners with SOCAR, the National Oil Company of Azerbaijan. Necessary adjustments to
Company’s share of assets, liabilities, revenues and expenses have been made during the year ended
March 31, 2018 for the revision in the PI and liability is recognised in respect of amount payable to SOCAR
on account of extension of PSA validity.

Consolidated Financial Statements

31.8 In respect of subsidiary OVL, current maturities of long term debt pertains to EUR 525 million unsecured
Euro Bonds which are due for repayment on July 15, 2021 and USD 400 million due for payment on
January 27, 2022.
31.9 In respect of subsidiary HPCL, amount reflected towards current maturity of long term debt, includes
loans repayable within one year: Syndicated Loans from Foreign Banks (repayable in foreign currency)
Nil (as on March 31, 2020: `41,500.70 million), Loan from Oil Industry and Development Board `7,250.00
million (as on March 31, 2020: `1,811.90 million) and other loans Nil (as on March 31, 2020: `277.60
million).
31.10 In respect of Subsidiary HPCL, it includes deposit received towards Rajiv Gandhi Gramin LPG Vitrak
Yojana `2,418.90 million (as at March 31, 2020 `2,418.90 million) and Prime Minister Ujjwala Yojana of
`30,156.90 million (as at March 31, 2020 `30,209.10 million). These deposits have been either made by
Government of India or created out of CSR fund.

32 Provisions
(` in million)
As at As at
Particulars March 31, 2021 March 31, 2020
Non Current Current Non Current Current
Provision for Employee benefits (Note No.
49) 563
For Post Retirement Medical & Terminal 51,713.19 9,640.44 49,649.81 13,470.73
Benefits
Unavailed Leave and compensated absenses 1,159.18 14,999.64 949.95 10,526.53
Gratuity for Regular Employees 147.62 978.55 125.20 860.56
Gratuity for Contingent Employees 66.79 20.94 83.78 18.69
Provision for Others
Provision for decommissioning (Note No.32.4) 275,139.08 3,908.91 249,865.39 4,471.87
Other Provisions (Note No. 32.1, 32.2 & 32.5) 32,919.25 19,238.38 30,331.91 12,523.64

Total provisions 361,145.11 48,786.86 331,006.04 41,872.02

 THE UNSTOPPABLE
ENERGY SOLDIERS
32.1 In respect of subsidiary MRPL, other provisions include provision for excise duty on closing stock. The
company estimates provision based on substantial degree of estimation for excise duty payable on
clearance of goods lying in stock as on March 31, 2021 of `5,441.60 million (as at March 31, 2020 of
`1,734.53 million). This provision is expected to be settled when the goods are removed from the factory
premises.
32.2 In respect of subsidiary OVL, other provision includes provision for minimum work program commitment
as on March 31, 2021 of `1,837.25 million which is in respect of Area 43 (as at March 31, 2020 of
`1,887.00 million) created in respect of Area 43, Libya.
32.3 Movement of Provision for Others
(` in million)
Provision for decommissioning Other Provisions
Particulars Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Balance at beginning of the year 254,337.26 239,839.71 42,855.55 16,532.33
Recognized during the year 9,912.46 8,129.59 13,808.65 33,654.50
Amount used during the year (444.49) (18,691.85) (3,076.88) (5,560.59)
Unwinding of discount 13,066.89 17,687.86 - -
Write back during the year (100.85) (2,467.25) (1,358.23) (2,002.30)
Effect of remeasurement / 3,707.60 5,762.07 - 10.22
reclassification
Effect of exchange difference (Note (1,430.88) 4,077.13 (71.46) 221.39
No.32.3.1)
Balance at end of the year 279,047.99 254,337.26 52,157.63 42,855.55

564
 ANNUAL REPORT
2020-21
32.3.1 In respect of subsidiary company OVL, represents exchange difference on account of translation of the
financial statements from functional currency to presentation currency. Refer Note No. 3.21 and 5.1(a).

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

32.5 In respect of company, other provision includes `32,500.41 million (Previous year `29,990.12 million)
accounted as provision for contingency to the extent of excess of accumulated balance in the SRF fund
after estimating the decommissioning provision of Panna-Mukta fields and Tapti Part A facilities as per the
Group’s accounting policy (refer note no. 6.2, 7.2.4 & 17.2).

Consolidated Financial Statements

33 Deferred Tax Liabilities (net)

The following is the analysis of deferred tax assets / (liabilities) presented in the Balance Sheet:
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Deferred tax assets 139,946.41 130,771.80
Deferred tax liabilities 567,014.46 564,517.00
Net Deferred tax assets / (liabilities) (427,068.06) (433,745.19)
(` in million)
Particulars for 2020-21 Opening Recognised Recognised Effect of Closing
balance in Profit in other exchange balance
and Loss comprehensive difference
Account income
Deferred tax (liabilities)/
assets in relation to:
Deferred Tax Assets
Unclaimed Exploratory 30,750.95 938.63 - - 31,689.58
Wells written off 565
Expenses Disallowed 19,840.47 8,078.16 - (67.18) 27,851.45
Under Income Tax
Financial Assets at 1,707.00 391.47 - - 2,098.47
amortised cost using EIR
Intangible assets 1,256.61 (599.07) - - 657.54
Financial Assets at FVTPL 169.12 (0.24) - - 168.88
Financial Assets at 83.03 - - - 83.03
FVTOCI
Defined benefit obligation 4,095.69 115.40 167.78 - 4,378.87
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars for 2020-21 Opening Recognised Recognised Effect of Closing

balance in Profit in other exchange balance
and Loss comprehensive difference
Account income
Current Investments (155.45) (183.00) - - (338.45)
MAT credit entitlement 17,879.09 (612.48) - (10.20) 17,256.41
Carry Forward tax losses/ 49,555.10 (712.01) - (35.69) 48,807.40
Depreciation
Right of Use Assets net of 29.38 (6.08) - - 23.30
Lease Liability
Others 5,560.81 3,276.01 (57.80) (1,509.10) 7,269.92
Total Assets 130,771.80 10,686.79 109.98 (1,622.17) 139,946.41

Deferred Tax Liabilities

Property, plant and 464,545.79 8,519.85 - (2,888.92) 470,176.72
equipment
Exploratory wells in 44,675.16 1,716.85 - - 46,392.01
progress
Development wells in 15,820.11 1,028.51 - - 16,848.62
progress
Intangible assets 14.03 (4.33) - - 9.70
Financial liabilities at 3.83 18.35 - - 22.18
amortised cost using EIR
Fair value gain on 4,016.34 - 1,957.66 - 5,974.00
Investment in equity
shares at FVTOCI
Foreign taxes 15,042.82 (553.57) - (648.27) 13,840.98
Exchange differences on 13,278.25 - (3,790.49) - 9,487.76
translating the financial
statements of foreign
operations (Note No.
566 33.7)
Tax adjustment of 1,919.49 (650.07) - - 1,269.42
unrealised profit
Dividend distribution tax 3,245.62 268.42 (5.45) - 3,508.59
on undistributed profit
(associates)
Undistributed earnings 39.17 (39.14) - - 0.03
Others 1,916.38 (2,431.93) - - (515.55)
Total Liabilities 564,517.00 7,872.94 (1,838.28) (3,537.19) 567,014.46
Net Deferred Tax 433,745.19 (2,813.86) (1,948.26) (1,915.02) 427,068.06
Liabilities
 ANNUAL REPORT
2020-21
(` in million)
Particulars for 2019-20 Opening Recognised Recognised Effect of Closing
balance in Profit in other exchange balance
and Loss comprehensive difference
Account income
Deferred tax (liabilities)/assets
in relation to:
Deferred Tax Assets
Unclaimed Exploratory Wells 39,479.31 (8,728.36) - - 30,750.95
written off
Expenses Disallowed Under 23,929.53 (4,270.44) - 181.38 19,840.47
Income Tax
Financial Assets at amortised 1,364.31 342.69 - - 1,707.00

Consolidated Financial Statements

cost using EIR
Intangible assets 1,908.98 (652.37) - - 1,256.61
Financial Assets at FVTPL 169.16 (0.04) - - 169.12
Financial Assets at FVTOCI 83.03 - - - 83.03
Defined benefit obligation 2,802.63 (287.43) 1,580.49 - 4,095.69
Current Investments 703.75 (859.20) - - (155.45)
MAT credit entitlement 17,829.47 (3.94) - 53.56 17,879.09
Carry Forward tax losses/ 47,701.42 1,307.36 - 546.32 49,555.10
Depreciation
Right of Use Assets net of Lease - 29.38 - - 29.38
Liability
Others 9,137.39 (912.44) 60.70 (2,724.84) 5,560.81
Total Assets 145,108.98 (14,034.79) 1,641.19 (1,943.58) 130,771.80

Deferred Tax Liabilities

Property, plant and equipment 477,270.63 (19,808.31) - 7,083.47 464,545.79 567
Exploratory wells in progress 54,223.28 (9,548.12) - - 44,675.16
Development wells in progress 13,415.63 2,404.48 - - 15,820.11
Intangible assets 11.46 2.57 - - 14.03
Financial liabilities at amortised 12.63 (8.80) - - 3.83
cost using EIR
Fair value gain on Investment in 12,048.27 - (8,031.93) - 4,016.34
equity shares at FVTOCI
Foreign taxes 19,971.87 (5,721.21) - 792.16 15,042.82
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars for 2019-20 Opening Recognised Recognised Effect of Closing

balance in Profit in other exchange balance
and Loss comprehensive difference
Account income
Exchange differences on 8,476.58 - 4,801.67 - 13,278.25
translating the financial
statements of foreign operations
(Note No. 33.7)
Tax adjustment of unrealised 728.10 1,191.40 - - 1,919.49
profit
Dividend distribution tax on 2,912.62 333.03 (0.03) - 3,245.62
undistributed profit (associates)
Undistributed earnings 5,281.30 (5,242.13) - - 39.17
Others 666.57 1,249.81 - - 1,916.38
Total Liabilities 595,018.95 (35,147.29) (3,230.29) 7,875.63 564,517.00
Net Deferred Tax Liabilities 449,909.96 (21,112.50) (4,871.48) 9,819.21 433,745.19

33.1The above includes net deferred tax asset of `26,936.44 million (as at March, 2020 `26,674.95 million) and
net deferred tax liability of `454,107.69 (as at March 31, 2020 `460,420.14) in respect of various components/
entities consolidated as below:
(` in million)
As at March 31, As at March 31,
Particulars
2021 2020
Net Deferred Tax Liability ONGC (including Group tax 276,992.37 268,117.90
adjustments)
Net Deferred Tax Liability OVL 74,879.74 86,675.59
Net Deferred Tax Liability ONGBV - 646.78
Net Deferred Tax Liability OVSL 159.18 406.44
Net Deferred Tax Liability OVRL 47,211.39 49,536.17
Net Deferred Tax Liability HPCL 54,622.11 54,914.43
568 Net Deferred Tax Liability PMHBL 139.71 122.83
Consolidated Net Deferred Tax Liability 454,004.50 460,420.14

Net Deferred Tax Asset ONGBV 13,150.90 14,422.65

Net Deferred Tax Asset OVAI 10.10 5.21
Net Deferred Tax Asset OMPL 9,379.63 8,788.63
Net Deferred Tax Asset MRPL 4,395.82 3,458.46
Consolidated Net Deferred Tax Asset 26,936.44 26,674.95
 ANNUAL REPORT
2020-21
33.2 Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, carry forward of unabsorbed depreciation and
unused tax losses can be utilized.
33.3 The group has not recognized deferred tax liabilities with respect to unremitted retained earnings and
associated foreign currency translation reserves with respect to its subsidiaries and joint ventures where
the group is in position to control the timings of the distribution of the profits and it is probable that the
subsidiaries and joint ventures will not distribute profit in the foreseeable future. Also, the group does not
recognises deferred tax liabilities on unremitted retained earnings of its subsidiaries and joint ventures
wherever it believes that it would avail the tax credit as per the provisions of Income Tax Act, 1961. Taxable
temporary differences associated with respect to unremitted earnings and associated foreign currency
reserve is `550,099.90 million (as at March 31, 2020 `499,721.18 million). Distribution of the same is
expected to attract tax in the range of nil to 34.944% depending on the tax rate applicable as of March 31,
2021 in the jurisdiction in which the respective group entity operates.
33.4 The group has recognized deferred tax assets with respect to unrealized profit of subsidiary & joint venture
and deferred tax liabilities with respect to unremitted retained earnings of associates where the group is
not in position to control the timings of the distribution of the profits. Deductible temporary differences

Consolidated Financial Statements

associated with respect to unrealized profit of subsidiary & joint venture and Taxable temporary differences
for unremitted earnings of associates has resulted in creation of deferred tax assets (net) to the extent of
`2,373.66 million (as at March 31, 2020 deferred tax liability (net) `2,204.55 million).
33.5 In respect of subsidiary MRPL, the Board of Directors of the step down subsidiary company OMPL has
accorded consent for merger of the company with its holding company, MRPL. The proposal of merger is
under implementation as at end of the Financial Year. Pending the completion of formalities for the merger
and the consequent merger of OMPL with MRPL, the company has considered the carry-forward of tax
losses amounting to `66,994.83 millions for recognition of deferred tax asset. For the recognition of the
deferred tax asset, the company has considered the future taxable profit as per the projections adopted
in the report of an Independent Professional body and the said projection is on the standalone basis
without taking into account the effect of merger. Further the said report has been taken on record by the
Board of Directors of OMPL in the meeting held on January 13, 2021. The deferred tax asset shown in the
balance sheet amounting to `9,379.63 millions is subject to review and appropriate changes based upon
review by the amalgamated company in the light of Ind AS 103 – Business Combinations on completion
of merger proposal. (also refer Note No.61)
33.6 In respect of subsidiary OVL, Deferred tax assets are recognised only to the extent that it is probable
that taxable profit will be available against which the unused tax losses or tax credits can be utilised. This
involves an assessment of when those assets are likely to reverse, and a judgement as to whether or not
there will be sufficient taxable profits available to offset the assets. This requires assumptions regarding
future profitability, which is inherently uncertain.
The details of expiry of the un-utilized tax credits/tax losses as on 31.03.2021 on which deferred taxes
assets haven’t been recognised are given in the table below:
569
(` in million)
Amount
Particulars Period of Period of Period of Total
expiry-0 to 1 expiry-1 to 5 expiry-above No Expiry
year years 5 years
Un-utilized MAT credit
generated through payment - - 23,321.07 - 23,321.07
of taxes paid in overseas
jurisdictions
Un-utilized Long term
capital losses 840.07 1,977.21 - - 2,817.29
 THE UNSTOPPABLE
ENERGY SOLDIERS
33.6.1 The Company has un-utilized MAT credit generated through payment of taxes paid in overseas
jurisdictions and subsequent claim of eligible Foreign Tax Credit, that are available for offset against
future taxable profit. Deferred income tax assets have not been recognized on the unutilized MAT credit
u/s 115JAA of the Income-tax Act 1961 on account of uncertainty surrounding the utilization of such Tax
credit.

33.6.2 The Company has net Long Term Capital Loss available for set off in future years on which deferred
income tax assets have not been recognized considering the probability of utilization of such losses
against future gains.

33.7 Represents exchange difference on account of translation of the consolidated financial statements
prepared in subsidiary, OVL’s, functional currency (US$) to presentation currency (`). Refer Note No. 3.21
and 5.1 (a).

34 Other liabilities
(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
Non Current Current Non Current Current
Liability for Statutory Payments - 70,950.91 - 35,841.71
Advance from Customers (Note No. 34.7) - 12,680.62 - 13,587.13
Contract Liability-Advance MGO (Note No. 256.74 273.78 256.74 1,431.77
34.2, 34.3, 34.4 & 34.5)
Deferred government grant (Note No. 3,696.61 214.23 3,818.32 214.78
34.1)
Other Liabilities (Note No. 34.6 & 34.8) 3,978.59 5,858.89 2,362.16 12,259.80
Total 7,931.94 89,978.43 6,437.22 63,335.19

34.1 During the year 2016-17, assets, facilities and inventory which were a part of the Tapti A series of PMT Joint
Operation (JO) and surrendered by the JO to the Government of India as per the terms and conditions of
the JO Agreement and these assets, facilities and inventory were transferred by Government of India to
the Company free of cost as its nominee. In line with amendment in Ind AS 20 ‘Accounting for Government
Grants and Disclosure of Government Assistance’ vide Companies (Indian Accounting Standards) Second
Amendment Rules, 2018 (the ‘Rules’), during the year 2019-20 the Company had opted to recognize the
non-monetary government grant at nominal value. (refer Note No. 6.2 & 7.2.4).

34.2 Revenue recognized that was included in the contract liability:

570 (` in million)
Product Year ended March 31, 2021 Year ended March 31, 2020
Natural Gas 39.27 79.90

34.3 Transaction price allocated to the remaining performance obligations that are unsatisfied at the reporting
date:
(` in million)
As at March 31, 2021 As at March 31, 2020
Product Less than 12 More than 12 Less than 12 More than 12
months months Months months
Natural Gas 28.67 256.74 47.97 256.74
 ANNUAL REPORT
2020-21
34.4 Significant changes in the contract liability balances during the year are as follows:
(` in million)
Particulars Year ended March 31, Year ended March 31,
2021 2020
Balance at beginning of the year 304.71 344.16
Add: Amount received from customers during 60.82 69.11
the year
Less: Minimum Guaranteed Offtake (MGO) 40.85 28.66
refunded
Less: Revenue recognised during the year 39.27 79.90
Balance at end of the year 285.41 304.71

34.5 In respect of subsidiary OVL, contract liability on gas sales represents amounts received from gas
customers against “Take or Pay” obligations under relevant gas sales agreements.

Consolidated Financial Statements

(` in million)
Year ended March 31, Year ended March 31,
2021 2020
Balance at the beginning of the year 1,383.80 3,105.31
Add: Amount received from customers during 74.63 180.37
the year
Less: Revenue recognized during the year 1,167.71 2,091.99
Less: Penalty recognised during the year 5.72 -
Exchange Difference (39.89) 190.11
Balance at the end of the year 245.11 1,383.80

34.6 In respect of subsidiary OVL, other current liabilities includes `558.27 million, which represents the cost of
overlifted oil quantity by the company during the year and the same would be settled in kind in future.
34.7 In respect of subsidiary HPCL, the revenue is recognised only upon satisfaction of performance obligation
and whenever there are remaining performance obligations, the same is recognised as revenue, a) in case
of amount received in advance from a Customer, when the product is delivered to the Customer, b) in case
of loyalty points earned by Customer, when such points are redeemed / expire. Such remaining obligations,
termed as Contract Liability under the Ind-AS 115 ‘Revenue Recognition’ at period end together with Trade
Receivable is as under:
571
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Trade Receivables 68,699.90 39,341.92
Liabilities under contractual 10,447.80 10,469.55
obligation

During the financial year, the company recognized revenue of `8,017.80 million (2019-20:`8,366.00 million)
arising from opening unearned revenue.

34.8 In respect of subsidiary PMHBL, GST receivable which was shown as balances with government authorities
(other than income taxes) previous year of `8.67 millions is regrouped under taxes payable (other than
income tax) as company have right to setoff these receivables with GST payable.
 THE UNSTOPPABLE
ENERGY SOLDIERS
35 Trade payables - other than micro and small enterprises

(` in million)
Particulars As at As at
March 31, 2021 March 31, 2020
Trade Payable - Other than Micro and Small
Enterprises 271,363.88 227,959.76
Total 271,363.88 227,959.76

35.1 Trade payables -Total outstanding dues of Micro & Small enterprises*

(` in million)
Particulars As at March 31, As at March 31,
2021 2020

a) Principal & Interest amount remaining unpaid but not due 3,127.57 1,651.50
as at year end

b) the amount of interest paid by the buyer in terms of - -

section 16 of the Micro, Small and Medium Enterprises
Development Act, 2006, along with the amount of the
payment made to the supplier beyond the appointed day
during the year.

c) the amount of interest due and payable for the period - -

of delay in making payment (which have been paid but
beyond the appointed day during the year) but without
adding the interest specified under the Micro, Small and
Medium Enterprises Development Act, 2006.

d) the amount of interest accrued and remaining unpaid at - -

the end of year; and

e) the amount of further interest remaining due and payable - -

even in the succeeding years, until such date when
the interest dues above are actually paid to the small
enterprise, for the purpose of disallowance of a deductible
expenditure under section 23 of the Micro, Small and
Medium Enterprises Development Act, 2006.
572
*Micro and Small Enterprises status based on the confirmation from Vendors.
35.2 In respect of company, payment towards trade payables is made as per the terms and conditions of the
contract / purchase orders. The average credit period on purchases is 21 days.

35.3 In respect of subsidiary OVL, payment towards trade payables is made as per the terms and conditions
of the contract / purchase orders. The average credit period on purchases is 21 days.

35.4 In respect of subsidiary MRPL, the average credit period on purchases of crude, stores and spares, other
raw material, services, etc. ranges from 14 to 60 days (year ended March 31, 2020 ranges from 14 to 60
days). Thereafter, interest is charged upto 6.75% per annum (year ended March 31, 2020 upto 6.75% per
annum) over the relevant bank rate as per respective arrangements on the outstanding balances. The
company has financial risk management policies in place to ensure that all payables are paid within the
pre-agreed credit terms.
 ANNUAL REPORT
2020-21
Subsidiary Company OMPL has average credit period on purchases of raw materials, stores and spares,
services, etc. ranges from 7 to 30 days. Thereafter, interest is charged at variable rates as per respective
trade arrangements on the outstanding balances. The Company has financial risk management policies
in place to ensure that all payables are paid within the pre-agreed credit terms.

36 Tax liabilities/assets (net)

Non Current Tax Assets
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020

Non current tax assets (net) 95,884.79 107,599.95

Total 95,884.79 107,599.95

Current Tax Assets

(` in million)
Particulars As at March 31, 2021 As at March 31, 2020

Consolidated Financial Statements

Current tax assets (net) 1,884.36 1,983.14
Total 1,884.36 1,983.14

Current tax Liabilities

(` in million)
Particulars As at March 31, 2021 As at March 31, 2020

Current tax liabilities (net) 7,425.52 6,252.26

Total 7,425.52 6,252.26

36
36.1 In respect of subsidiary OVL, the above non-current tax liabilities include provisions on account of
disputed income tax demands in India under the Income tax Act 1961 amounting to `214.93 million as
at March 31, 2021 (`748.65 million as at March 31, 2020) in respect of disputed disallowances/additions
made by the Assessing Officer on tax positions not covered by favourable orders from Appellate
authorities.

37 Revenue from Operations

(` in million)
Particulars Year Ended Year Ended 573
March 31, 2021 March 31, 2020
A. Sale of products
Sale of products (including excise duty) 3,604,386.19 4,245,890.34
Less: Transfer to Exploratory Wells in progress 51.74 324.03
(includes levies)
Less: Government of India’s (GoI’s) share in 15,464.60 17,757.88
Profit Petroleum
Total 3,588,869.85 4,227,808.43
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars Year Ended Year Ended

March 31, 2021 March 31, 2020
B. Other Operating Revenue
Contractual Short Lifted Gas Receipts 104.49 254.67
Pipeline Transportation Receipts (Note No. 2,770.79 3,647.52
37.12)
North-East Gas Subsidy (Note No. 37.2) 1,395.33 2,295.85
Surplus from Gas Pool Account - 1,308.20
Production Bonus 132.92 -
Sale of Electricity 635.17 668.38
Processing Charges 312.54 753.42
Other Receipts (Note No. 37.11) 11,502.01 12,874.28
Total 16,853.25 21,802.32
Total revenue from operations 3,605,723.10 4,249,610.75

37.1 In respect of the company, Sales revenue in respect of Crude Oil produced from nomination blocks is
based on pricing formula provided in Crude Oil Sales Agreements (COSAs) signed with Buyer refineries.
COSAs with Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL),
Bharat Petroleum Corporation Limited (BPCL), Chennai Petroleum Corporation Limited (CPCL) which
were valid till March 31, 2018 and have been extended provisionally from time to time presently till March
31, 2021. COSA with Mangalore Refinery and Petrochemicals Limited (MRPL) has been signed and
effective from April 01, 2018, is valid for 5 years.

For Crude Oil produced in North East Region, Sales revenue in respect of Crude oil supplied to IOCL is
based on the pricing formula provided in COSA signed with IOCL effective from April 01, 2018, is valid
for 5 years and to Numaligarh Refinery Limited (NRL) is based on pricing formula provided by Ministry of
Petroleum and Natural Gas (MoP&NG) respectively.

37.2 In respect of the company, majority of Sales revenue in respect of Natural Gas is based on domestic
gas price of US$ 2.39/mmbtu and US$ 1.79 /mmbtu (on GCV basis) notified by GoI for the period April
01, 2020 to September 30, 2020 and October 01, 2020 to March 31, 2021 respectively in terms of “New
Domestic Natural Gas Pricing Guidelines, 2014”. For consumers in North-East (upto Govt. allocation),
consumer price is 60% of the domestic gas price and the difference between domestic gas price and
consumer price is paid to the Company through GoI Budget and classified as ‘North-East Gas Subsidy’.

574 37.3 LPG produced by the Company is presently being sold as per guideline issued by MoP&NG to PSU Oil
Marketing Companies (OMCs), as per provision of Memorandum of Understanding (MOU) dated March
31, 2002 signed by the Company with OMCs which was valid for a period of 2 years or till the same is
replaced by a bilateral agreement or on its termination.

Value Added Products other than LPG are sold to different customers at prices agreed in respective Term
sheets / Agreements entered into between the parties.

37.4 Oil, Gas and Petroleum Products are declared as essential services by Government of India during
lockdown due to COVID-19 pandemic. Since, India has import dependency of more than 80% in case of
crude and around 50% in case of natural gas/ LNG, no significant impact was observed on Company’s
existing production of crude oil and natural gas during the year due to reduction in global demand. The
crude oil produced by the Company is allocated by Government to PSU Refineries. Similarly, majority of
gas produced by the Company is allocated by Government to priority sectors like Power, Fertilizer, City
 ANNUAL REPORT
2020-21
Gas Distribution etc. The Company continued Subsidized LPG from State Governments
producing and supplying crude oil and natural amounting to `313.00 million (2019-20:
gas to its customers during lockdown period. `639.50 million) and Subsidy on Sugar
Offtake of crude oil by Refineries was not (pertaining to HPCL Biofuels Ltd.) from GOI of
affected during the lockdown period. Few `140.80 million (2019-20: `295.10 million) has
Gas customers had served notices of Force been accounted.
majeure on the Company due to lock down
restrictions causing marginal reduction in Gas 37.7 Budgetary Support amounting to ` (98.00)
sales which is not material. million (2019-20: `2,814.10 million) under
‘Recovery under Subsidy Schemes’ towards
The outbreak of COVID-19 globally and under recovery on sale of PDS SKO has been
resultant lockdown in many countries, accounted.
including India has impacted the business of
the Company. The revenue of the group for the 37.8 Disaggregation of revenue as required under
year ended March 31, 2021 are impacted by Ind AS 115:
low crude oil and natural gas prices due to the (` in million)

Consolidated Financial Statements

COVID-19 pandemic and volatile global crude Particulars 2020-21 2019-20
oil and natural gas markets. Accordingly, the
same are not comparable with those for the Exports 30,609.60 62,033.80
previous year.
Other than 2,664,327.30 2,803,708.90
The management has assessed the possible exports
impact of continuing COVID-19 on the basis of
internal and external sources of information and Total 2,694,936.90 2,865,742.70
expects no significant impact on the continuity
of operations, useful life of Property Plant and 37.9 In respect of subsidiary OVL, with effect from
Equipment, recoverability of assets, trade 8th May 2020, the block CPO-5 has moved to
receivables etc., and the financial position of Production Phase consequent to obtaining the
the Company on a long term basis. Global Environmental License from regulatory
As regards Subsidaries, Hindustan Petroleum authorities. Accordingly, the Company has
Corporation Limted (HPCL) and Mangalore recognised revenue from May 2020 onwards
Refinery and Petrochemicals Limited (MRPL), in respect of its exploration block CPO-5,
the outbreak of COVID-19 pandemic resulted Colombia.
in lower demand for petroleum petroducts 37.10 In respect of subsidiary OVL, the majority of
during part of the year and resulted in reduction the company’s natural gas production is sold
in sales for the Group. The capacity utilization under long-term contracts. The company
however, gradually improved subsequemtly expects to satisfy all of its sale obligation
during the year. Group expects no significant through the production of its proved reserves
impact on the coninuity of operations of the of natural gas.
575
business on long term basis and expects
to recover carrying amount of assets and 37.11 In respect of Subsidiary of OVL, step down
dischage its debts & obligations. subsidiary ONGBV is acting as an agent to
arrange for the sale of crude oil for FOGBV
In respect of Subsidiary HPCL: (Operator at Lower Zakum Concession, UAE).
37.5 Sale of product is net of discount of `21,996.30 ONGBV recognises net margin as a facilitator
million (2019-20: `23,484.70 million). for marketing & administrative activities
provided in respect of sale of crude on behalf
37.6 During the current financial year 2020-21, of FOGBV. The details of net margin recognized
Subsidy on PDS Kerosene and Domestic in other receipts is as follows:
 THE UNSTOPPABLE
ENERGY SOLDIERS
(` in million)
Particulars For the year ended For the year ended
March 31, 2021 March 31, 2020
A. Sale of products 18,449.97 27,432.23
B. Purchases of stock in trade 18,356.21 27,344.09
Total (A-B) 93.76 88.14

37.12 In respect of Subsidiary of PMHBL, the Freight Income is recognized based on the pipeline transportation
tariff fixed by Petroleum & Natural Gas Regulatory Board (PNGRB). “PNGRB vide Order No. TO/2019-20/03
dated 04.06.2019 fixed the pipeline tariff for the period from 20.12.2018 to 31.12.2019 by benchmarking against
alternate mode of transport i.e. rail at a level of 75% railway tariff on a train load basis for equivalent rail distance
along the pipeline route. Freight income for the period 01.04.2020 to 31.03.2021 is recognized based on Order No.
TO/2019-20/03 dated 04.06.2019 as the new order yet to be released by PNGRB effective from 01.01.2020, however
PNGRB extended the transition period upto 30.09.2021”

38 Other Income
(` in million)
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Interest on:
Deposits with Banks 1,829.80 3,738.53
Income Tax Refund 819.60 295.33
Delayed Payment from Customers and Others 4,832.28 4,265.30
Current Investment carried at FVTPL 3,856.22 3,731.07
Financial assets measured at amortized cost
- Site Restoration Fund Deposit 9,091.58 11,017.79
- Employee Loan 1,675.12 1,615.65
- Other Investments 165.79 165.79
- Others 3,738.31 3,059.79
Total 26,008.70 27,889.25
Dividend Income from:

576 Other Investments 15,405.19 9,074.21

Total 15,405.19 9,074.21
Other Non-Operating Income
Excess Provision written back (Note No. 38.1) 13,217.96 20,228.14
Liabilities no longer required written back 1,576.87 1,413.86
Exchange Gain (net) 19,331.68 -
Contractual Receipts 954.81 954.26
Profit on sale of investments - 5.53
Profit on sale of Asset 1.04 194.12
 ANNUAL REPORT
2020-21

Particulars Year Ended Year Ended

March 31, 2021 March 31, 2020
Amortization of financial guarantee obligation 12.74 13.07
(Note No. 64)
Gain on fair valuation of financial instruments 2,528.31 2,651.91
(Note No. 38.2)
Gain on revaluation of financial liability towards CCDs 4,659.61 5,038.27
(Note No. 64)
Miscellaneous Receipts 9,533.28 23,307.60
Total 51,816.30 53,806.76
Total other income 93,230.19 90,770.22

38.1 In respect of subsidiary OVL, during the year, trade receivables in respect of Sudan have been assessed
for lifetime expected credit loss method and a reversal of `4,472.86 million has been made. (refer Note

Consolidated Financial Statements

No.15.5)

38.2 In respect of subsidiary HPCL, gain on fair valuation of financial instruments includes fair value gain
amounting to `1,589.91 million on re-measurement of previously held equity interest. (refer Note No. 4(l))

39 Purchase of Stock in Trade

(` in million)
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Crude & other petroleum products* 1,445,618.29 1,760,064.29
Total 1,445,618.29 1,760,064.29

*in respect of subsidiary HPCL and MRPL

40 Changes in inventories of finished goods, stock in trade and work in progress

(` in million)
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Closing Stock 286,711.06 187,631.99
Opening Stock 187,631.99 209,151.26
577
Effect of exchange difference (87.52) (34.32)
Write down of inventories considered under Exceptional
Items (Note No. 45.3) - (10,029.32)
(Increase)/Decrease in Inventories (99,166.59) 11,455.63
 THE UNSTOPPABLE
ENERGY SOLDIERS
41 Production, Transportation, Selling and Distribution Expenditure
(` in million)
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Royalty 91,384.94 127,846.35
OIDB Cess 80,187.49 107,877.64
Natural Calamity Contingent Duty 989.46 1,019.92
Excise Duty 565,713.27 281,985.07
Port Trust Charges 432.73 346.59
Other Levies 6,601.26 5,074.43
Staff expenditure 63,137.15 65,391.69
Workover operations 15,425.72 14,466.64
Water Injection, Desalting and Demulsification 10,233.97 12,153.51
Consumption of raw materials & stores and spares 566,636.79 889,021.46
Pollution control 2,222.76 2,780.29
Transport expenditure 4,604.27 5,952.38
Insurance 3,129.76 2,323.95
Power and Fuel 9,314.94 10,541.64
Repairs and maintenance 39,091.54 46,115.82
Contractual payments including Hire charges etc. 18,626.22 21,560.65
Other production expenditure 34,210.84 39,828.24
Transportation and Freight of Products 83,481.59 81,886.86
Research and development 5,541.30 5,557.73
General administrative expenses 34,918.97 40,225.14
CSR expenditure (Note No.41.5 & 41.6) 7,184.97 8,680.44
Exchange Loss (net) (Note No. 42.1) - 35,184.48
Decrease/(increase) due to overlift/underlift quantity 736.54 (124.93)
Miscellaneous expenses (Note No. 41.8) 35,550.06 31,703.82
Loss on sale of property, plant & equipments 583.35 134.19
578 Loss on fair valuation of financial instruments 1,538.47 1,945.78

Total Production, Transportation, Selling and 1,681,478.36 1,839,479.78

Distribution Expenditure

41.1 In respect of subsidiary MRPL, the company during the year has finalized the Long Term Settlement
pertaining to wage revision and other related benefits of the Non Management staff which was due for
revision effective from January 1, 2017. The effect of same has already been considered in respective
financial years.

41.2 In respect of subsidiary MRPL, the company has generated a total of 8,005,216 Kwh of Solar power for
the year ended March 31, 2021 (Year ended March 31, 2020 a total of 8,229,787 Kwh) and the same are
captively consumed. The monetary values of such power generated that are captively consumed are not
recognised for the purpose of disclosure in the financial statement.
 ANNUAL REPORT
2020-21
41.3 Excise Duty on sale of goods has been included in “Revenue from operations”. Despite of decrease in
sales from petroleum products, crude oil and other products for the current year, the Excise duty on sale
of goods is higher mainly on account of increase in excise duty rates of MS (Petrol) and HSD (Diesel).

41.4 Details of Nature wise Expenditure

(` in million)
Year Ended Year Ended
Particular
March 31, 2021 March 31, 2020
Employee Benefit Expenses
(a) Salaries, Wages, Ex-gratia etc. 106,056.97 114,501.99
(b) Contribution to Provident and other funds 12,685.54 16,916.64
(c) Provision for gratuity 731.17 651.30
(d) Provision for Leave (Including Compensatory Absence) 6,990.78 3,451.10
(e) Post Retirement Medical & Terminal Benefits 7,144.16 11,616.89
(f) Staff welfare expenses 7,721.41 8,174.64

Consolidated Financial Statements

Sub Total: 141,330.03 155,312.56
Consumption of Raw materials, Stores and Spares 613,477.27 939,689.39
Royalty 91,384.94 127,846.35
OIDB Cess 80,187.49 107,877.64
National Calamity Contingent Duty 989.46 1,019.92
Excise Duty 565,713.27 281,985.07
Port Trust Charges 432.73 346.59
Other Levies 6,601.26 5,074.43
Rent 6,839.10 6,044.74
Rates and taxes 4,987.13 2,257.31
Hire charges of equipments and vehicles 32,251.08 38,111.18
Power, fuel and water charges 19,674.54 20,789.22
Contractual drilling, logging, workover etc. 56,073.67 63,050.95
Contractual security 11,562.36 11,367.82
Contractual Transportation 71,071.27 68,142.85
Repairs to building 1,553.20 1,715.63
Repairs to plant and equipment 28,134.12 29,688.14
Other repairs 7,548.31 7,853.81
Insurance 3,981.31 3,128.00
Expenditure on Tour / Travel 3,139.17 6,849.54
CSR Expenditure (Note No. 41.5 & 41.6) 7,184.97 8,680.44 579
Exchange Loss (Net) (Note No. 42.1) - 35,184.48
Other Operating expenditure* 20,428.10 22,602.89
Miscellaneous expenditure (Note No.41.8) 27,941.03 28,686.52
1,802,485.83 1,973,305.48
Less:
Allocated to exploration, development drilling, capital jobs, 121,007.47 133,825.70
recoverables etc.
Production, Transportation, Selling and Distribution 1,681,478.36 1,839,479.78
Expenditure
* In respect of subsidiary OVL, the other operating expenditure includes the expenses in respect of project(s)
where the details are not made available by the Operator of the project in above mentioned heads.
 THE UNSTOPPABLE
ENERGY SOLDIERS
41.5 CSR Expenditure

41.5.1 Break-up of various heads of CSR expenditure

(` in million)
Year ended Year ended
Sl.
Heads of Expenditure March 31, March 31,
No.
2021 2020
i. Promoting Education 1,002.35 2,167.75
ii. Promoting Health Care 1,980.91 1,463.72
iii. Empowerment of Socially and Economically 104.37 154.16
Backward groups
iv. Promotion of Nationally recognized and Para-Olympic Sports 68.18 44.62
v Imparting Employment by Enhancing Vocational Skills 83.98 830.61
vi. Swachh Bharat Abhiyaan 118.16 608.23
vii Environment Sustainability 137.89 1,030.23
viii PM CARES Fund 3,020.00 10.00
ix. Others 859.18 2,371.14
Total 7,375.02 8,680.44

41.5.2 The CSR expenditure comprises the following:

(a) Gross amount required to be spent by the Group during the year `7,184.97 million (Previous year
`8,792.79 million) as against the approved budget of `7,184.97 million (Previous year `8,792.79
million).

(b) Amount spent during the year on: (` in million)

Year ended March 31, 2021 Year ended March 31, 2020
Particulars Yet to be
Yet to be
In Cash paid in Total In Cash Total
paid in cash
cash
Construction/acquisition of 159.42 61.57 220.99 368.04 96.55 464.59
any asset
On purpose other than 7,000.34 153.69 7,154.03 7,744.12 471.73 8,215.85
580 above
Total 7,159.76 215.26 7,375.02 8,112.16 568.28 8,680.44

(c) Excess Amount of CSR spent during the year carried forward:
(` in million)
Year ended
Particulars
March 31, 2021
Opening Balance -
Amount required to be spent during the year 6,968.20
Amount spent during the year 7,375.02
Closing Balance 406.82
 ANNUAL REPORT
2020-21
(d) Unspent Amount of CSR on ongoing projects
(` in million)
Amount spent
Opening Balance Closing Balance
during the year
Amount
In required to be From In
Year From
separate spent during separate separate
With Group’s With
CSR the year CSR CSR
Group bank Group#
unspent unspent unspent
account
a/c a/c a/c
2020-21 Nil Nil 216.77 Nil Nil 216.77 Nil

# An amount of `216.77 million representing unspent money on ongoing projects has been transferred
to Specified Bank account on April 30, 2021.

41.6 In respect of subsidiary OVL, the operations of the company are outside India and therefore the eligible

Consolidated Financial Statements

Net Profit of the year for the purpose of Corporate Social Responsibility (CSR) under the Companies
Act, 2013 shall be “Nil”. However, for the year ended March 31, 2021, the company has made a total
expenditure of `10.69 million (for the year ended March 31, 2020 `11.33 million) towards CSR activities
outside India directly or through its joint ventures.

41.7 In respect of subsidiary OVL, upto the year ended March 31, 2021, input tax credit under GST amounting
to `818.52 million has been claimed by the company in the GST returns filed and the same is reflected in
the Electronic Credit Ledger (ECL) of the Company on GST portal. This amount of `818.52 million is after
adjusting the refund issued amounting to `198.51 million that pertains to FY 2018-19. Further, the amount
of claim for FY 2020-21 is under review and necessary adjustments, if any, will be carried out in the period
up to September 2021 (period available as per GST law).

41.8 The Miscellaneous Expenditure in Note No. 41.4 includes Statutory Auditors Remuneration as under:
(` in million)
Year ended Year ended
Payment to Auditors
March 31, 2021 March 31, 2020
Audit Fees 49.96 48.96
Certification and Other Services 22.12 23.31
Travelling and Out of Pocket Expenses 4.54 23.04
Total 76.62 95.31

42 Finance Cost
581
(` in million)
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Interest on:
- Borrowings from Banks/Financial Institutions 11,717.71 19,835.44
- Debentures/Bonds 13,789.70 8,923.35
- Cash credit 740.06 783.18
- Commercial Paper 2,716.14 4,385.56
Borrowing Cost-Exchange difference on Foreign Currency (222.67) 14,441.86
Loan(Note no.42.1)
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars Year Ended Year Ended

March 31, 2021 March 31, 2020
Amounts included in the cost of qualifying assets (3,645.57) (5,685.51)

Unwinding of discount on:

- Decommissioning provision 15,383.82 19,781.84

- Liability for Compulsory Convertible Debentures (Note 4,208.78 4,843.43

No.64)

- Lease liabilities 5,950.50 5,588.78

- Financial liabilities 275.11 258.71

Net loss/(gain) on fair value of derivative contracts (906.81) 1,433.54

mandatorily measured at fair value through profit or loss
(Note No. 42.3)

Others 783.54 303.21

Total 50,790.31 74,893.39

42.1 In terms of para 6 and 6A of Ind AS 23 ‘Borrowing Cost’ the exchange difference arising out of foreign
currency borrowings i.e. the difference between the cost of borrowings in functional currency (`) as
compared to the cost of borrowings in foreign currency is treated as finance cost as an adjustment to
foreign exchange loss. During the year, there has been an unrealized foreign exchange loss amounting
to `3,364.11 million (Previous year `14,441.86 million) in respect of subsidiary OVL and HPCL in respect
of translation of some foreign exchange borrowings, which has been recognised as an adjustment to
finance cost.

Further, there has been an unrealised foreign exchange gain in respect of the company and subsidiary
MRPL in respect of translation of some foreign exchange borrowings, the foreign exchange gain
amounting to `3,586.78 million i.e. to the extent of the foreign exchange loss previously adjusted has
been recognised as an adjustment to interest.

42.2 In respect of subsidiary OVL, the weighted average capitalization rate on funds borrowed is 2.13% per
annum (as at March 31, 2020: 3.45%).

42.3 In respect of subsidiary OVL, the net loss/(gain) on fair value of derivative contracts recognised in the
statement of Profit & loss is on account of mark to market valuation of the derivative contracts resulting from
582 movements in exchange rates and interest rates of the underlying currencies. These derivative contracts
are solely taken for the long term foreign currency borrowings of the Company. Accordingly, it has been
deemed appropriate to classify it under finance cost as a separate line item to enable the readers of
financial statements to appreciate the offsetting effect of the derivative contracts on the financing costs.

42.4 In respect of subsidiary HPCL, weighted average cost of borrowing rate used for capitalization of general
borrowing (other than specific borrowings) is 1.53% during FY 2020-21 ( as at March 31, 2020 : 5.96%)

42.5 In respect of subsidiary HPCL, others include interest u/s 234B / 234C of Income Tax Act, 1961 for an
amount `570.30 million (2019-20 : Nil)
 ANNUAL REPORT
2020-21
43 Depreciation, Depletion, Amortization and Impairment
(` in million)
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Depletion of Oil and Gas assets 159,506.74 166,096.87

Depreciation of other Property, Plant and 66,149.86 64,634.48

Equipments
Depreciation of right-of-use assets 57,047.67 51,761.00
Less: Allocated to exploratory drilling (17,779.48) (15,891.23)
Less: Allocated to development drilling (16,602.41) (17,515.54)
Less: Allocated to others (455.55) (746.32)
Total Depreciation 88,360.09 82,242.39

Consolidated Financial Statements

Amortisation of intangible assets 1,130.48 1,144.84

Impairment Loss (Note No. 57)

Provided during the year 35,140.20 22,610.35
Less: Reversed during the year 28,752.80 5,745.64
Total 6,387.40 16,864.71

Total Depreciation, Depletion, Amortisation and 255,384.71 266,348.81

Impairment

43.1 During the year, based on the recommendation of internally constituted committee, the Company has
excluded the condensate generated in the pipelines post well head and the gas which is liberated in Crude
Stabilization Unit during stabilization of the crude oil from the production for the purpose of calculation
of depletion on oil and gas assets using unit of production method. This has resulted in decrease in
depletion by `1,482.47 million for the year. This has an impact in future periods also, estimation of which
is impracticable.

44 Other impairment and Write Offs

(` in million) 583
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Impairment For:
Doubtful debts 1,821.71 1,536.85
Acquisition cost - 1.77
Doubtful claims/advances 6,859.23 6,272.15
Non-moving inventories 1,424.66 2,110.23
Others 92.10 459.64
10,197.70 10,380.64
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars Year Ended Year Ended

March 31, 2021 March 31, 2020
Write offs
Disposal/Condemnation of other PPE 1,173.47 16,493.78
Inventory 188.88 302.95
Receivables 7.38 2.16
Claims/advances 42.19 147.64
Others (Note No. 44.1) 168.01 -
1,579.93 16,946.53
Total Other impairment and write offs 11,777.63 27,327.17

44.1 This represents Goodwill on consolidation 45.1 In respect of Company,

written off on sale of shares of step down
subsidiary OMPL.(refer Note No. 4(e)) The company has carried out impairment test
as at March 31, 2021 in respect of its Cash
44.2 In respect of subsidiary OVL, during the previous Generating Units (CGUs) and has recorded a
year, the company has terminated/surrendered net impairment reversal to the extent the value
EPSA for Block 2A and 4, Sudan w.e.f. 31st in use exceeds the carrying amount subject to
August 2019. Accordingly, the company has accumulated impairment provision and has
written off an amount of `15,433.16 million in disclosed the same as an exceptional item
FY 2019-20 in respect of the following assets: amounting to `13,750.34 million (previous year
Other PPE (`34.83 million), Oil and Gas Assets net impairment loss of `48,990.47 million). For
(`14,542.11 million), Development Wells in details refer Note No.57.4 on impairment.
Progress (`386.08 million) and Exploratory Wells
in Progress (`470.14 million). Consequently, 45.2 In respect of subsidiary OVL, the company
the impairment provision of `16,519.69 million carried out impairment test as at March 31, 2021
pertaining to this project has been written back. in respect of its Cash Generating Units (CGUs)
based on value in use method. The Company
identified impairment in respect of 2 CGUs and
45 Exceptional items impairment reversal in respect of 3 CGUs and
provided for net impairment of `4,562.66 million
(` in million )
during the year ended March 31, 2021 (for the
Particulars Year Ended Year Ended year ended March 31, 2020 net impairment of
March 31, March 31, `31,265.00 million was recognised). The net
2021 2020 provision for impairment is considered as
exceptional item.
584 Impairment 9,187.68 (80,255.47)
(charge)/reversal 45.3 In respect of subsidiary HPCL, with due
consideration to the requirements of the
Write down of - (10,029.32) Accounting Standards, the company had during
inventory the previous year 2019-20, determined the write
Total 9,187.68 (90,284.79) down of inventories due to drastic fall in oil
prices accompanied with reduced movement
in inventory and the same had been disclosed
as Exceptional Items having an impact of
`10,029.32 million (Net of tax: `7,505.10 million)
for the year ended March 31, 2020.
 ANNUAL REPORT
2020-21
46 Tax Expense
(` in million)
Particulars Year Ended Year Ended
March 31, 2021 March 31, 2020
Current tax in realtion to:
Current year 80,815.23 96,475.80
Earlier years 9,820.30 (18,054.22)
Total 90,635.53 78,421.58
Deferred tax (2,973.52) (3,359.72)
Total (2,973.52) (3,359.72)
Total tax expense recognized 87,662.01 75,061.86

46.1 The income tax expense for the year can be reconciled to the accounting profit as follows:

Consolidated Financial Statements

(` in million)
Year ended Year ended
Particulars
31.03.2021 31.03.2020
Profit before tax 301,096.47 189,624.45
Income tax expense calculated at 34.944% (2019-2020: 34.944%) 105,215.15 66,262.37
Adjustments for tax effect of:
Dividend 5,416.40 (3,008.20)
Deduction under section 80-IA (166.70) (178.79)
Deduction under section 80-M (7,693.09) -
Investment Allowance @ 15% 4.33 2.67
Income exemp from tax (856.88) 72.98
Exceptional (income)/expense not considered in determining taxable (655.71) 9,223.45
profit
Corresponding Effect of temporary differences on account of current (11,186.42) 4,558.03
tax of earlier periods
Current Tax on CSR Expenditure 1,751.39 564.98
Expenses not allowed in Income Tax 837.83 3,048.68 585
Additional tax for foreign jurisdiction (1,138.05) 5,771.11
Concessions (research and development u/s 35(2AB) and 35(1)(ii)) - (834.45)
Losses of subsidiary not available for set-off in Group profit 273.04 307.40
Profit from associate (2,155.47) (1,938.58)
Profit from joint venture 1,222.33 3,184.14
Deferred tax on unrealised profits 86.78 423.03
Deferred tax on undistributed profits 229.28 (4,590.90)
Other inter group eliminations (358.90) (14.02)
Rupee tax base on account of change in exchange rate (870.19) 3,673.28
 THE UNSTOPPABLE
ENERGY SOLDIERS

Year ended Year ended

Particulars
31.03.2021 31.03.2020
Timing differences 0.89 (22.41)
Change in deferred tax balance due to true up adjustments 344.51 (139.91)
Exemption under section 10AA of Income Tax Act, 1961. 1,206.87 4,126.92
Differential tax rates (13,947.80) (1,460.09)
Sub total 77,559.59 89,031.69
Others 282.12 4,084.39
77,841.71 93,116.08
Adjustments recognised in the current year in relation to the current 9,820.30 (18,054.22)
tax of prior years
Income tax expense recognised in profit or loss (relating to 87,662.01 75,061.86
continuing operations)

46.2 Income tax recognized in other comprehensive income

Year ended Year ended

Particulars
31.03.2021 31.03.2020
Deferred tax on
a) Items that may be reclassified to profit or loss
Exchange differences in translating the financial statements of 3,790.49 (4,801.67)
foreign operations
Effective portion of gains (losses) on hedging instruments in cash 2.73 60.90
flow hedges
b) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit obligation 478.11 2,121.79
Net fair value gain on investments in equity shares at FVTOCI (1,957.67) 8,031.93
Share of OCI in Associates & JVs in other comprehensive income: 5.45 0.03
Total income tax recognised in other comprehensive income 2,319.11 5,412.98
Bifurcation of the income tax recognised in other comprehensive
income into:-
586 Items that will not be reclassified to profit or loss (1,474.11) 10,153.75
Items that may be reclassified to profit or loss 3,793.22 (4,740.77)

46.3 The Government of India through “The Taxation Laws (Amendment) Act, 2019” has inserted Section
115BAA of the Income Tax Act, 1961, whereby a domestic company can irrevocably opt for a lower
corporate tax rate subject to foregoing of certain tax deductions and incentives, including accumulated
MAT credit eligible for set-off in subsequent years. The company has still not exercised this option and
continues to evaluate the benefit of exercising the option of a lower corporate tax rate vis-à-vis the pre-
existing provisions. The Company can exercise the option till the filing of return of income. Pending
exercising of the option, the company continues to recognize the taxes on income for the year ended
March 31, 2021 as per the earlier provisions.

Also, Subsidary OVL and MRPL have not excercised the option and continues to recognize the taxes on
income for the year ended March 31, 2021 as per the earlier provisions.
 ANNUAL REPORT
2020-21
46.4 The Government of India has enacted Direct Entitlements of `76.00 million (2019-20:
Tax Vivad Se Vishwas Act, 2020, providing a `684.10 million).
mechanism for settlement of disputes related
to Direct Tax matters. The company has opted The Provision for Tax for earlier years includes an
to settle certain Income-tax disputes and additional amount of `117.90 million (2019-20:
accordingly, has filed application before the `6,230.10 million) provided during year,
designated authority as prescribed under the pursuant to filing of declaration and acceptance
Act. After considering existing provision, in by Income tax department under Vivad Se
respect of these disputes, a sum of `5,063.18 Vishwas Scheme, 2020 (opted in FY 2019-
million payable under the said Act has been 20), leading to revised tax liability of `7,766.60
charged as current tax relating to earlier years million vis.a.vis. earlier determination of
in the Statement of Profit and Loss during the `7,648.70 million, accounted till previous
current year. financial years. The proceedings have not
been concluded.
46.5 During the year, the Company has considered
the benefit of deduction on dividend income 46.8 In respect of subsidiary OVL,

Consolidated Financial Statements

during the year, as per section 80M of the 46.8.1 During the year FY 2020-21, a Long term capital
Income Tax Act,1961, having a tax impact gain amounting to `1,019.48 million (Previous
amounting to `7,693.09 million on current tax Year Nil) for the current year has been set-off
expense. against the brought forward Long term capital
46.6 In respect of Subsidiary MRPL, during losses of earlier years. A net tax benefit arising
the financial year ended March 31, 2020, from set off of previously unrecognised tax loss
the Company opted to settle Income Tax as above that is used to reduce the current
Disputes under the Direct Tax Vivad Se tax expense is amounting to `237.50 million
Vishwas Act, 2020, and accordingly, a sum of (including surcharge and education cess)
`1,084.76 million payable under the said (Previous Year Nil).
scheme was charged as prior year tax in the 46.8.2 The company has considered the benefit of
Statement of Profit and Loss in the financial deduction on dividend income during the year,
year ended March 31, 2020. Pursuant to this, as per section 80M of the Income Tax Act,1961,
the tax assets and liabilities were reclassified having a tax impact amounting to `505.93
for the year ended March 31, 2020. The tax million on current tax expense in the books of
assets of `2,908.37 million and liabilities of accounts.
`1,084.76 million pertaining to assessment
years for which the Company exercised the 46.8.3 During the current financial year, the
option were considered as current tax assets Company has opted for settlement of
and current tax liabilities respectively, as the certain eligible Income Tax disputes
same are expected to be settled within a year. for the Assessment Years 2006-07 to
The same treatment is continued in the current 2014-15 on appeals filed by the Company 587
financial year as the final orders under the said through Vivad se Vishwas Scheme
scheme are awaited. introduced by the Government of India vide
The Direct Tax Vivad Se Vishwas Act, 2020.
46.7 In respect of subsidiary HPCL The disputed tax payable amounting to
Provision for tax for earlier years `166.30 million `521.10 million has already been paid and
(2019-20: ` (15,481.10) million) comprising provided in the books based on the appeal
of additional provision towards current tax of effect orders received for the respective
`71.80 million (2019-20 : `1,723.30 million), Assessment Years and accordingly, during the
additional provision towards deferred Tax year, no amount has been accounted for as
of `170.50 million (2019-20: `(16,520.30) current tax expense in the Statement of Profit
million) and recognition of MAT credit and Loss towards the aforesaid scheme.
 THE UNSTOPPABLE
ENERGY SOLDIERS
47 Earnings per Equity share

(All amounts are ` in millions unless otherwise stated)

Particulars Year Ended Year Ended

March 31, 2021 March 31, 2020
Profit after tax for the year attributable to equity shareholders 162,486.88 108,035.97
Weighted average number of equity shares (No. in million) 12,580.28 12,580.28
Basic & Diluted earnings per equity share (`) 12.92 8.59
Face Value per equity share (`) 5.00 5.00

48 Leases
As part of transition, under Ind AS 116 ‘Leases’ during the previous year, the Group had availed the
practical expedient of not to apply the recognition requirements of Ind AS 116 to short term leases and
also applied materiality threshold for recognition of assets and liabilities related to leases.

48.1 Expenditure booked under various heads related to Ind AS 116 ‘Leases’ and Company’s exposure
to future cash outflows is as under:
(` in million)
Year Ended Year Ended
Expenditure heads
March 31, 2021 March 31, 2020
Depreciation expense on Right-Of-Use Assets 57,047.67 51,761.00
Interest expense on Lease Liability 7,585.44 7,397.78
Expense related to short term leases 13,545.17 19,402.19
Expense related to leases of low value assets 2,703.84 3,082.87
Expense related to variable lease payments not included in the 53,409.55 53,237.56
measurement of lease liabilities
48.2 The estimated future undiscounted cash flows for lease payments:

(` in million)
As at As at
Particulars
March 31, 2021 March 31, 2020
Future Lease payments payable from end of the year
Upto one year 48,156.07 55,818.17
588 Between one to three years 53,430.24 53,592.54
Between three to five years 12,036.84 16,225.80
More than five years 78,945.75 55,632.35
Total 192,568.90 181,268.85
Less: Interest Cost 51,763.22 49,991.11
Net Lease liability 140,805.68 131,277.74
Add: Perpetual Lease liability 787.74 787.74
Less: Inter group eliminations 335.71 364.65
Total lease liabilities 141,257.71 131,700.83
 ANNUAL REPORT
2020-21
48.3 In respect of Company, pursuant to amendment computation of liability at official rates declared
to Ind AS 116 vide the Companies (Indian by Employees Provident Fund Organisation for
Accounting Standards) Amendment Rules, the FY 2020-21.
2020 dated July 24, 2020, the Company
applying the provisions of para 46A of the Provident Fund is governed through a separate
above rules has opted for practical expedient trust. The board of trustees of the Trust
on rent concessions that meet the conditions functions in accordance with any applicable
in paragraph 46B of amended Ind AS 116. On guidelines or directions that may be issued
application of the practical expedient, lease in this behalf from time to time by the Central
rent concession amounting to `37.72 million Government or the Central Provident Fund
has been recognised during the year and Commissioner, the board of trustees have the
capitalised in the related well cost as per the following responsibilities:
accounting policies of the Company. (i) Investments of the surplus as per the
pattern notified by the Government in this
49 Employee benefit plans regard so as to meet the requirements
of the fund from time to time.

Consolidated Financial Statements

49.1 Defined Contribution plans:
(ii) Raising of moneys as may be required
49.1.1 Provident Fund for the purposes of the fund by
In case of Company sale, hypothecation or pledge of the
investment wholly or partially.
The Company pays fixed contribution to
provident fund at predetermined rates to a (iii) Fixation of rate of interest to be credited
separate trust, which invests the funds in to members’ accounts.
permitted securities. The obligation of the
Group is to make such fixed contribution and In case of subsidiary HPCL:
to ensure a minimum rate of return to the
Provident Fund
members as specified by GoI. As per report
of the actuary, overall interest earnings and The long term employee benefit of Provident Fund
cumulative surplus is more than the statutory is administered through a separate Trust,
interest payment requirement. Hence, no established for this purpose in accordance
further provision is considered necessary. with The Employee Provident Fund and
The details of fair value of plan assets and Miscellaneous Provisions Act, 1952. The
obligations are as under: Group’s contribution to the Provident Fund
(` in million) is remitted to this trust based on a fixed
percentage of the eligible employee’s salary
Particulars As At As At and charged to Statement of Profit and Loss.
31-Mar-21 31-Mar-20* During the year, the Group has recognized 589
Obligations at 142,255.57 134,889.76 `1,676.50 million (2019-20: `1,463.00 million)
the end of the as Employer’s contribution to Provident Fund
year in the Statement of Profit and Loss. Under
Fair Value of 144,301.89 136,448.00 the Statute, the shortfall, if any, in the interest
Plan Assets at obligation, in comparison to minimum rate of
the end of the return, declared by Government of India will
year have to be made good by the Employer. There
did not arise any shortfall in interest obligation
* Fair value of Plan Assets is reinstated based in the current financial year though the previous
on Audited Balance Sheet of the Provident year’s shortfall, provisionally accounted in
Fund Trust as at March 31, 2020 and figure 2019-20 as `100.40 million got revised to
of Obligation is reinstated based on re-
 THE UNSTOPPABLE
ENERGY SOLDIERS
`104.30 million and therefore an amount of `3.90 million (2019-20: `100.40 million) has been provided
and charged to Statement of Profit and Loss during the current financial year.

On reporting date, the Trust Investments included few Non-convertible Debentures of certain Companies,
amounting to `2,430.00 million (as at March 31, 2020: `2,430.00 million) which have witnessed default in
meeting interest obligations in 2019-20, which continued in 2020-21. In anticipation of probable default in
principal repayment these investments were marked down by 70% in Books in 2019-20, which continues
to be the true and fair valuation as of March 31, 2021 as per management assessment. Thus, no additional
provision (2019-20: `1,701.00 million) is warranted during this financial year.

The present value of benefit obligation at period end is `46,784.50 million (as at March 31, 2020:
`43,731.30 million). The fair value of the assets of Provident Fund Trust as of Balance Sheet date is greater
than the present value of benefit obligation.

Superannuation Fund:

The HPCL Group has Superannuation - Defined Contribution Scheme (DCS) maintained by
‘Superannuation Benefit Fund Scheme (SBFS) Trust’ wherein Employer makes a monthly contribution
of a certain percentage of ‘Basic Salary & Dearness Allowance(DA)’, out of 30%, earmarked for various
Superannuation benefits. This is in accordance with Department of Public Enterprises (DPE) guidelines.
These contributions are credited to individual Employee’s Account maintained either with Life Insurance
Corporation of India (LIC) or an optional National Pension Scheme (NPS) Account. For the financial year
2020-21, the Corporation has made an overall contribution of `1,925.10 million ( 2019 - 20 : `1,628.90
million) towards Superannuation - DCS [including `597.00 million (2019-20 : `507.60 million) to NPS] by
charging it to the statement of Profit and Loss.

Further, for the financial year 2020-21, Corporation has made a provision of `234.10 million (2019-
20: `521.50 million) by charging to Statement of Profit & Loss towards increase in liabilities in case of
Superannuation – Defined Benefit Scheme (DBS) determined based on actuarial valuation.

In case of Subsidiary, MRPL:

Provident Fund:

A brief description on Provident Fund is as follows:

a) Provident Fund is governed through a separate trust. The board of trustees of the Trust functions
in accordance with any applicable guidelines or directions that may be issued in this behalf from
time to time by the Central Government or the Central Provident Fund Commissioner. The board of
trustees have the following responsibilities :
590
i. The investments shall be made in accordance with the pattern of investment prescribed by
the Government of India in Rule 67 of Income Tax Rules, 1962, and /or directions given by
the Central Government, from time to time.

ii. The Board of Trustees may raise such sum or sums of money as may be required for
meeting obligatory expenses such as settlement of claims, grant of advances as per rules,
and transfer of member’s P.F. accumulations in the event of his / her leaving service of the
Employer and any other receipts by sale of the securities or other investments standing
in the name of the Fund subject to the prior approval of the Regional Provident Fund
Commissioner.

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

 ANNUAL REPORT
2020-21
b) The long term employee benefit of Provident Fund is administered through a separate Trust,
established for this purpose in accordance with The Employee Provident Fund and Miscellaneous
Provisions Act, 1952. The Company’s contribution to the Provident Fund is remitted to this trust
based on a fixed percentage of the eligible employee’s salary and charged to Statement of Profit
and Loss. During the year, the Company has recognized Employer’s contribution to Provident Fund
in the Statement of Profit and Loss are given below:

(` in million)
Contribution for key
Amount recognized during
Particulars management personnel
2020-21 2019-20 2020-21 2019-20
Employer’s contribution to Provident Fund 293.02 232.98 1.41 1.24

c) Under the Statute, the shortfall, if any, in the interest obligation, in comparison to minimum rate of
return, declared by Government of India will have to be made good by the Employer and therefore,

Consolidated Financial Statements

for the financial year 2020-21, an amount of `28.72 million (Year ended March 31, 2020 ` Nil) has
been provided and charged to Statement of Profit and Loss. The shortfall has arisen primarily due
to default over interest obligations on Non-convertible Debentures (NCD) of certain Companies
wherein the Trust has made its investments at a time when these Companies were having highest
credit rating. In anticipation of probable principal default as well in these NCDs amounting to
`347.30 million, basis best available estimate, the Provident Fund Trust has marked down the
investments by 70% in its books to reflect the true & fair valuation. Correspondingly, considering
the Employer’s obligation to make good the loss in value of these investments under the Provident
Fund regulations, the Company determined its probable liability in the future amounting to `243.11
million (Year ended March 31, 2020 ` Nil), which has been provided during the year and charged
to Statement of Profit and Loss.

d) The fair value of the assets of Provident Fund Trust as of Balance Sheet date is greater than the
present value of benefit obligation which is given below.

(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Present value of obligation at the end of the year 5,472.05 4,772.87

In case of Subsidiary, PMHBL:

The Company makes Provident Fund which are defined contribution plans, for qualifying employees.
Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs 591
to fund the benefits. The Company recognised `3.09 millon (Year ended 31 March, 2020 `2.82 million)
for Provident Fund contributions in the Statement of Profit and Loss under the head Employee Benefits
Expense. The contributions payable to these plans by the Company are at rates specified in the rules of
the schemes..

49.1.2 Post Retirement Benefit Scheme

The defined contribution pension scheme of the Group for its employees is administered through
a separate trust. The obligation of the Group is to contribute to the trust to the extent of amount not
exceeding 30% of basic pay and dearness allowance as reduced by the employer’s contribution towards
provident fund, gratuity, post-retirement medical Benefit (PRMB) or any other retirement benefits.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The board of trustees of the Trust functions in accordance with any applicable guidelines or directions that
may be issued in this behalf from time to time by the Central Government, the board of trustees have the
following responsibilities:

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

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

(iii) Purchase of annuities for the members.

49.2 National Pension Scheme (NPS)

The Company has introduced NPS for its employees during the year within the overall limit of Post
Retirement Benefit Scheme. An employee has the option to determine the contribution to be made in
PRBS and NPS.

The obligation of the Company is to contribute to NPS at the option of employee to the extent of amount
not exceeding 30% of basic pay and dearness allowance as reduced by the employer’s contribution
towards provident fund, gratuity, post-retirement medical Benefit (PRMB), post-retirement benefit scheme
or any other retirement benefits. An employee can opt for a maximum of up to 10% of its Basic Salary and
DA as employer’s contribution towards NPS. All other standard provisions of NPS applies to the scheme.

49.3 Employee Pension Scheme 1995

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

49.4 Composite Social Security Scheme (CSSS)

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

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

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

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

(iii) To provide cash benefits to the nominees in the event of death of an employee or Permanent
Total Disablement leading to the cessation from service and refund of own contribution along with
interest in case of separation other than death.
 ANNUAL REPORT
2020-21
49.5 The following are the amounts before allocation recognized in the consolidated financial statements for
the defined contribution plan:
(` in million)
Contribution for key
Amount recognized during
Defined Contribution Plans management personnel
2020-21 2019-20 2020-21 2019-20
Provident Fund 5,001.80 4,517.39 4.20 3.78
Post Retirement Benefit Scheme 6,946.22 7,936.53 5.66 5.92
Employee Pension Scheme-1995 (EPS) 285.80 326.73 0.09 0.08
Composite Social Security Scheme (CSSS) 549.45 555.61 0.29 0.27
National Pension Scheme (NPS) 777.25 - 0.14 -

49.6 Defined benefit plans

Consolidated Financial Statements

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

All the employee benefit plans of the Company are run as Group administration plans (Single Employer
Scheme) which include employees of the Company seconded to ONGC Videsh Limited (OVL) 100%
subsidiary, as well as employees directly appointed by OVL.

49.6.2 Gratuity

15 days salary for each completed year of service. Vesting period is 5 years and the payment is restricted
to `2 million on superannuation, resignation, termination, disablement or on death.

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

In case of Subsidiary, HPCL

Each employee rendering continuous service of 5 Years or more is entitled to receive gratuity amount
equal to 15/26 of the eligible salary for every completed years of service subject to maximum of `2.0
million at the time of separation from the company. Besides the ceiling of gratuity increases by 25%
whenever IDA rises by 50%. The long term employee benefit of Gratuity is administered through a Trust,
established under The Payment of Gratuity Act, 1972. The Board of Trustees comprises of representatives
from the Employer who are also plan participants in accordance with the plans regulation. The liability
towards gratuity is funded with Life Insurance Corporation of India (LIC).

In case of Subsidiary, MRPL 593

15 days salary for every completed year of service. Vesting period is 5 years and the payment is restricted
to `2 million.

49.6.3 Post-Retirement Medical Benefits

The Group has Post-Retirement Medical benefit (PRMB), under which the retired employees, their spouses
and dependent parents are provided medical facilities in the Group hospitals/empanelled hospitals
up on payment of one time prescribed contribution by the employees. They can also avail treatment
as out-patient. The liability for the same is recognized annually on the basis of actuarial valuation. Full
medical benefits on superannuation and on voluntary retirement are available subject to the completion
of minimum 20 years of service and 50 years of age.
 THE UNSTOPPABLE
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An employee should have put in a minimum Corporation. Thus, no additional provision
of 15 years of service rendered in continuity (2019-20: `696.50 million) is warranted during
in ONGC at the time of superannuation to be this financial year, to be charged to Statement
eligible for availing post-retirement medical of Profit and Loss in compliance with Ind AS 19.
facilities. However, as per DPE guidelines
In case of Subsidiary, MRPL:
dated August 03, 2017, the Post-Retirement
Medical Benefits is allowed to Board Level After retirement, on payment of one time
executives (without any linkage to 15 years lump sum contribution, the superannuated
of service) upon completion of their tenure or employee and his/her dependent spouse and
upon attaining the age of retirement, whichever dependent parents will be covered for medical
is earlier. benefit as per the rules of the Company.
During the year 2019-20, the Company had 49.6.4 Terminal Benefits
approved the formation of ONGC Post-
Retirement Medical Benefit Trust to provide At the time of superannuation, employees are
for and fund towards Post-Retirement Medical entitled to settle at a place of their choice and
Liability as per the Company’s post - retirement they are eligible for Settlement Allowance.
medical scheme, in a staggered manner. The
In case of Subsidiary, HPCL:
“ONGC PRMB Trust” has also been formed
and registration of Trust was completed during Upon superannuation from the services of the
the year and the implementation of scheme is Group, there are employees who permanently
under process. settle down at a place other than the location of
the last posting. Such employees are provided
In case of Subsidiary, HPCL
with resettlement allowance as per policy of
Post Retirement Benefit medical scheme the HPCL Group.
provides medical benefit to retired employees In case of Subsidiary, MRPL:
and eligible dependent family members. This
long term employee benefit is administered a) At the time of superannuation,
through a Trust. The liability towards Post- employees are entitled to settle at a
Retirement Medical Benefit for employees is place of their choice and they are eligible
ascertained, yearly, based on the actuarial for Settlement Allowance.
valuation and funded to the Trust. b) Premature Retirement on Medical
On reporting date, the Trust Investments Grounds
included few Non-convertible Debentures of The Company has an approved
594 certain Companies, amounting to `995.00 scheme of Premature Retirement on
million (as at March 31, 2020: `995.00 million) Medical Grounds. Ex gratia payment
which have witnessed default in meeting equivalent 60 days emolument for each
interest & or principal obligations in 2019-20, completed year of service or the monthly
which continued in 2020-21. In anticipation of emoluments at the time of retirement
probable default in principal repayment, these multiplied by the balance months
investments were marked down by 70% in of service left before normal date of
Books in 2019-20, which continues to be the retirement, whichever is less is payable
true and fair valuation as of March 31, 2021 as apart from Superannuation Benefits.
per management assessment. The diminution
in Trust Investments are factored in the actuarial c) Scheme for Self Insurance for providing
valuation while ascertaining the liability for the lump-sum monetary compensation
 ANNUAL REPORT
2020-21
Under the scheme of ‘Post Retirement 49.6.7 These plans typically expose the Group to
Benefit and Benefit on Separation’, in actuarial risks such as: investment risk, interest
case of employee suffering death or rate risk, longevity risk and salary risk.
permanent total disablement due to
an accident arising out of and in the Investment The present value of the defined
course of employment, a compensation risk benefit plan liability is calculated
equivalent to 100 months Basic Pay plus using a discount rate which is
Dearness Allowance (DA) without laying determined by reference to market
down any minimum amount is payable. yields at the end of the reporting
period on government bonds. When
d) Benefits of Separation under SABF: In there is a deep market for such
case of death / permanent disablement bonds; if the return on plan asset is
of an employee while in service in below this rate, it will create a plan
the Company, the beneficiary has to deficit. Currently, for these plans,
exercise desired options available investments are made in government
securities, debt instruments, Short

Consolidated Financial Statements

within 6 months from the date of death /
permanent total disablement. term debt instruments, Equity
instruments and Asset Backed,
49.6.5 Pension Trust Structured securities as per
notification of Ministry of Finance.
The employees covered by the Pension Plan
of the Company are entitled to receive monthly Interest risk A decrease in the bond interest
pension for life. rate will increase the plan liability;
however, this will be partially offset
In case of Subsidiary, HPCL: by an increase in the return on the
The employees covered by the Pension Plan plan’s investments.
of the Group are entitled to receive monthly Longevity The present value of the defined
pension for life. However, none of the current risk benefit plan liability is calculated by
serving employees are covered under Pension reference to the best estimate of the
Plan of the Company. mortality of plan participants both
during and after their employment.
49.6.6 Ex-gratia
An increase in the life expectancy
The ex-employees of Group covered under the of the plan participants will increase
Scheme are entitled to get ex-gratia based on the plan’s liability.
the grade at the time of their retirement. The Salary risk The present value of the defined
benefit will be paid to eligible employees till benefit plan liability is calculated
their survival, and after that, till the survival of by reference to the future salaries 595
their spouse. of plan participants. As such, an
increase in the salary of the plan
In case of Subsidiary, HPCL: participants will increase the plan’s
The ex-employees of Company are covered liability.
under the Scheme, entitling to get ex-gratia, No other post-retirement benefits are provided
determined based on their salary grade to these employees.
at the time of their superannuation. The
benefit is paid to eligible employees till their In respect of the above plans, the most recent
survival, and thereafter till the survival of their actuarial valuation of the plan assets and the
spouse. However, none of the current serving present value of the defined benefit obligation
were carried out as at March 31, 2021 by a
employees are covered under this Plan.
member firm of the Institute of Actuaries of
 THE UNSTOPPABLE
ENERGY SOLDIERS
India. The present value of the defined benefit (HPL) could be considered for encashment
obligation, and the related current service cost on retirement subject to the overall limit of
and past service cost, were measured using 300 days. Consequently, MOP&NG had
the projected unit credit method. advised the company to comply with the DPE
Guidelines. Subsequently, the matter has
49.7 Other long term employee benefits been dealt in 3rd PRC recommendations,
49.7.1 Brief Description: A general description of the which is effective January 1, 2017 and CPSEs
type of Other long term employee benefits is have been allowed to frame their own leave
as follows: rules considering operational necessities and
subject to conditions set therein. Therefore,
All the employee benefit plans of the Company the requisite conditions are fully met by the
are run as Group administration plans (Single company.
Employer Scheme) including employees
seconded to as well as directly appointed by In case of Subsidiary MRPL:
ONGC Videsh Limited (OVL), 100% subsidiary. Earned Leave Benefit (EL):
Further, ONGC accounts for the employee Accrual – 32 days per year
benefit liability of all Defined Benefit plans Accumulation up to 300 days allowed
pertaining to OVL employees in its books of
EL accumulated in excess of 15 days is allowed
account and expenditure for the period is
for encashment while in service provided the
transferred to OVL’s books of account. This is
EL encashed is not less than 5 days.
done in compliance with the requirement for
group administrative plan stated in para 38 of 49.7.3 Good Health Reward (Half pay leave)
IND AS 19.
Accrual - 20 days per year
49.7.2 Earned Leave (EL) Benefit
Encashment while in service - Nil
Accrual – 30 days per year Encashment on retirement - 50% of Half Pay
Encashment while in service – 75% of Earned Leave balance.
Leave balance subject to a maximum of 90 Scheme is funded through Life Insurance
days per calendar year Corporation of India. (LIC).
Encashment on retirement – maximum 300 The liability for the same is recognized annually
days on the basis of actuarial valuation.
Scheme is funded through Life Insurance In case of subsidiary MRPL:
Corporation of India (LIC).
Accrual – 20 days per year
Each employee is entitled to get 15 earned
leaves for each completed half year of service. Encashment while in service is not allowed

596 All regular employees of the company while in Encashment on retirement is permitted;
service may be allowed encashment of Earned restricted up to 300 days along with Earned
Leave once in a calendar year, to the extent of leave.
75% of the Earned Leave at their credit, subject
to maximum of 90 days. 49.7.4 In case of subsidiary HPCL:

In addition, each employee is entitled to get 10 The employees of the Corporation are entitled
HPL at the end of every six months. The entire to certain leave as per policy. The liability of the
accumulation is permitted for encashment only Corporation is determined annually through
at the time of retirement. DPE had clarified actuarial valuation and funded with Life
earlier that sick leave cannot be encashed, Insurance Corporation of India (LIC).
though Earned Leave (EL) and Half Pay Leave
 ANNUAL REPORT
2020-21
49.8 The principal assumptions used for the purposes of the actuarial valuations were as follows:

S.No. Particulars 31-Mar-21 31-Mar-20

Gratuity
I Discount rate 6.70%-6.81% 6.70%-6.87%
II Expected return on plan assets 6.70%-6.80% 6.70%-6.87%
III Annual increase in salary 5.00%-7.50% 5.00%-8.00%

Leave
IV Discount rate 6.70%-6.81% 6.70%-6.80%
V Expected return on plan assets 6.80% 6.80%
VI Annual increase in salary 5.00%-8.00% 5.00%-8.00%

Consolidated Financial Statements

Post-Retirement Medical Benefits
VII Discount rate 6.80%-6.91% 6.80%-6.86%
VIII Expected return on plan assets 6.91% 6.81%
IX Annual increase in costs 3.00%-7.5% 3.00%-7.5%

Terminal Benefits
X Discount rate 6.80%-6.90% 6.80%-6.86%
XI Expected return on plan assets NA NA
XII Annual increase in costs 7.50% 7.50%
XIII Annual increase in salary 7.50% 7.50%
XIV Pension 6.44% 6.82%
Employee Turnover (%)
XV Up to 30 Years 3.00 3.00
XVI From 31 to 44 years 2.00 2.00
XVII Above 44 years 1.00 1.00
XVIII Weighted Average Duration of Present 13.30 12.92
Benefit Obligations
597
The discount rate is based upon the market yield available on Government bonds at the accounting date
with a term that matches the weighted average duration of present benefit obligations. The salary growth
takes account inflation, seniority, promotion and other relevant factors on long term basis. Expected rate
of return on plan assets is based on market expectation, at the beginning of the year, for return over the
entire life of the related obligation.

In respect of the company, the mortality rate for Male insured lives have been assumed for Actuarial
Valuation as on 31.03.2021 as per 100% of Indian Assured Life Mortality (2012-14) issued by Institute
of Actuaries of India for Actuarial Valuation as on 31.03.2021, as separate rates applicable for female
lives has not been published by The Institute of Actuaries of India for 2012-14. Therefore, uniform rates
of mortality for Male have been used for both Male and Female employees for computation of Employee
Benefit Liability.
 THE UNSTOPPABLE
ENERGY SOLDIERS
Company-wise Mortality Rate:

Particulars ONGC (including HPCL MRPL PMHBL

OVL)

Before Indian Assured Indian Assured Indian Assured Indian Assured

retirement Lives Mortality Lives Mortality Table Lives Mortality Table Lives Mortality
Table (2012-14) (2006-08) (2006-08) Table (2012-14)

After Indian Assured Indian Individual Indian Individual N.A

retirement Lives Mortality AMT (2012-15) AMT (2012-15)
Table (2012-14)

49.9 Amounts recognized in the Consolidated Financial Statements before allocation in respect of these
defined benefit plans and other long term employee benefits are as follows:

Gratuity
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20

Service Cost :

Current service cost 905.79 907.51

Past service cost and (gain)/loss from settlements 237.25 -

Net interest expense 43.70 (56.34)

Increase or decrease due to adjustment in opening corpus consequent to (29.91) (15.91)

audit
Components of defined benefit costs recognised in Employee Benefit 1,156.82 835.25
expenses

Remeasurement on the net defined benefit liability:

Actuarial (gains)/losses arising from changes in demographic 12.42

assumptions
598 Actuarial (gains)/losses arising from changes in financial assumptions 45.40 1,802.88

Actuarial (gains) / losses arising from experience adjustments 433.73 (1,002.72)

Return on Plan Assets (excluding amount included in net interest cost) (60.99) (75.10)

Components of Remeasurement 418.14 737.48

Total 1,574.96 1,572.74

 ANNUAL REPORT
2020-21
Leave
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Service Cost :
Current service cost 1,871.87 1,713.27
Past service cost and (gain)/loss from settlements - -
Net interest expense 239.19 494.09
Increase or decrease due to adjustment in opening corpus consequent to 161.45 (217.37)
audit
Additional Contribution Due to Pay Revision - -
Actuarial (gains)/losses arising from changes in demographic assumptions - 14.96

Consolidated Financial Statements

Actuarial (gains)/losses arising from changes in financial assumptions (23.54) 1,846.69
Actuarial (gains) / losses arising from experience adjustments 4,865.73 (220.67)
Return on Plan Assets (excluding amount included in net interest cost) (124.34) (282.92)
Components of defined benefit costs recognised 6,990.37 3,348.05

Post-retirement medical benefits

(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Service Cost :
Current service cost 1,038.34 876.01
Past service cost and (gain)/loss from settlements - -
Net interest expense 3,400.43 3,464.07
Components of defined benefit costs recognised in Employee Benefit 4,438.78 4,340.09
expenses
599
Remeasurement on the net defined benefit liability:
Return on Plan Assets (excluding amount included in net interest cost) NA NA
Actuarial (gains)/losses arising from changes in demographic assumptions 7.16 24.98
Actuarial (gains)/losses arising from changes in financial assumptions (50.44) 3,991.83
Actuarial (gains) / losses arising from experience adjustments 567.65 300.75
Adjustments for restrictions on the defined benefit asset - -
Components of Remeasurement 524.38 4,317.56
Total 4,963.15 8,657.65
 THE UNSTOPPABLE
ENERGY SOLDIERS
Terminal Benefits

(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Service Cost :
Current service cost 115.03 104.63
Past service cost and (gain)/loss from settlements - -
Net interest expense 106.65 95.80
Components of defined benefit costs recognised in Employee Benefit 221.68 200.43
expenses
Remeasurement on the net defined benefit liability:
Actuarial (gains)/losses arising from changes in demographic - 0.72
assumptions
Actuarial (gains)/losses arising from changes in financial assumptions (0.50) 321.60
Actuarial (gains) / losses arising from experience adjustments (31.79) 55.41
Adjustments for restrictions on the defined benefit asset - -
Components of Remeasurement (32.29) 377.72
Total 189.39 578.15

Pension

(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Service Cost :
Current service cost - -
Past service cost and (gain)/loss from settlements - -
Net interest expense 12.80 15.90
Components of defined benefit costs recognised in Employee 12.80 15.90
Benefit expenses
600 Remeasurement on the net defined benefit liability:
Actuarial (gains)/losses arising from changes in demographic - -
assumptions
Actuarial (gains)/losses arising from changes in financial assumptions 2.60 4.50
Actuarial (gains) / losses arising from experience adjustments (3.50) (11.20)
Adjustments for restrictions on the defined benefit asset - -
Components of Remeasurement (0.90) (6.70)
Total 11.90 9.20
 ANNUAL REPORT
2020-21
Ex – Gratia

(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Service Cost :
Current service cost - -
Past service cost and (gain)/loss from settlements 99.20 -
Net interest expense 14.40 18.20
Components of defined benefit costs recognised in Employee 113.60 18.20
Benefit expenses

Remeasurement on the net defined benefit liability:

Consolidated Financial Statements

Actuarial (gains)/losses arising from changes in demographic - -
assumptions
Actuarial (gains)/losses arising from changes in financial assumptions 0.80 5.80
Actuarial (gains) / losses arising from experience adjustments 20.60 0.90
Components of Remeasurement 21.40 6.70
Total 135.00 24.90

Gratuity Unfunded
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Service Cost :
Current service cost 5.36 16.63
Past service cost and (gain)/loss from settlements - -
Net interest expense 2.89 7.37
Components of defined benefit costs recognised in Employee Benefit 8.25 24.00 601
expenses

Remeasurement on the net defined benefit liability:

Actuarial (gains)/losses arising from changes in demographic - (0.01)
assumptions
Actuarial (gains)/losses arising from changes in financial assumptions (1.07) 17.60
Actuarial (gains) / losses arising from experience adjustments 0.08 (6.77)
Components of Remeasurement (0.99) 10.82
Total 7.27 34.82
 THE UNSTOPPABLE
ENERGY SOLDIERS
Post-Retirement Medical Benefits: Funded
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Service Cost :
Current service cost 589.30 587.90
Net interest expense 107.80 4.30
Contribution by Employee (45.00) (8.10)
Components of defined benefit costs recognised in Employee Benefit 652.10 584.10
expenses
Remeasurement on the net defined benefit liability:
Return on Plan Assets (excluding amount included in net interest cost) (143.20) 852.40
Actuarial (gains)/losses arising from changes in demographic 951.70 -
assumptions
Actuarial (gains)/losses arising from changes in financial assumptions 487.00 1,068.20
Actuarial (gains) / losses arising from experience adjustments (288.00) (393.70)
Components of Remeasurement 1,007.50 1,526.90
Total 1,659.60 2,111.00
The Components of Remeasurement of the net defined benefit liability recognized in other comprehensive
income is `1,865.85 million (Previous Year `6,876.94 million).

602

An offshore rig in Sakhalin, Russia. ONGC Videsh produced

13.039 MMTOE in FY’21
 ANNUAL REPORT
2020-21
49.10 Movements in the present value of the defined benefit obligation and other long term employee benefits
are as follows:

Gratuity
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening defined benefit obligation 34,661.41 35,711.25
Current service cost 905.79 907.51
Interest cost 2,363.75 2,774.08
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic - 12.42
assumptions

Consolidated Financial Statements

Actuarial (gains)/losses arising from changes in financial assumptions 45.40 1,802.88
Actuarial (gains) / losses arising from experience adjustments 433.73 (1,002.72)
Past service cost, including losses/(gains) on curtailments 237.25 -
Benefits paid (5,459.33) (5,544.01)
Closing defined benefit obligation 33,187.99 34,661.41

Leave
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20

Opening defined benefit obligation 29,477.36 30,299.73

Current service cost 1,871.87 1,713.27
Interest cost 2,004.43 2,354.44
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic
assumptions - 14.96 603
Actuarial (gains)/losses arising from changes in financial
assumptions (23.54) 1,846.69
Actuarial (gains) / losses arising from experience adjustments 4,865.73 (220.67)
Past service cost, including losses/(gains) on curtailments - -
Benefits paid (7,032.72) (6,531.04)
Closing defined benefit obligation 31,163.14 29,477.36
 THE UNSTOPPABLE
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Post-retirement medical benefits: Unfunded
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening defined benefit obligation 50,005.57 44,582.53
Current service cost 1,038.34 876.01
Interest cost 3,400.43 3,464.07
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic 7.16 24.98
assumptions
Actuarial (gains)/losses arising from changes in financial (50.44) 3,991.83
assumptions
Actuarial (gains) / losses arising from experience adjustments 567.65 300.75
Other Adjustments 101.55 -
Benefits paid (2,778.73) (3,234.60)
Closing defined benefit obligation 52,291.54 50,005.57

Terminal Benefits

(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening defined benefit obligation 1,567.36 1,233.48
Current service cost 115.03 104.63
Interest cost 106.65 95.80
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic - 0.72
assumptions
Actuarial (gains)/losses arising from changes in financial (0.50) 321.60
assumptions
Actuarial (gains) / losses arising from experience adjustments (31.79) 55.41
604 Past service cost, including losses/(gains) on curtailments - -
Benefits paid (113.04) (244.28)
Closing defined benefit obligation 1,643.71 1,567.36

Pension

(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening defined benefit obligation 187.80 213.20
Current service cost - -
Interest cost 12.80 15.90
 ANNUAL REPORT
2020-21

Year Ended Year Ended

Particulars
31-Mar-21 31-Mar-20
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic 1.50 -
assumptions
Actuarial (gains)/losses arising from changes in financial 2.60 4.50
assumptions
Actuarial (gains) / losses arising from experience adjustments (3.50) (11.20)
Past service cost, including losses/(gains) on curtailments - -
Benefits paid (30.30) (34.60)
Closing defined benefit obligation 170.90 187.80

Ex-Gratia
(` in million)

Consolidated Financial Statements

Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening defined benefit obligation 219.20 243.10
Past service cost, including losses/(gains) on curtailments 99.20 -
Interest cost 14.40 18.20
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic (7.80) -
assumptions
Actuarial (gains)/losses arising from changes in financial assumptions 0.80 5.80
Actuarial (gains) / losses arising from experience adjustments 20.60 0.90
Past service cost, including losses/(gains) on curtailments -
Benefits paid (65.20) (48.80)
Closing defined benefit obligation 281.20 219.20
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening defined benefit obligation 42.67 93.97
605
Current service cost 5.36 16.63
Interest cost 2.89 7.37
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic - (0.01)
assumptions
Actuarial (gains)/losses arising from changes in financial assumptions (1.07) 17.60
Actuarial (gains) / losses arising from experience adjustments 0.08 (6.77)
Other Adjustments 1.00 -
Benefits paid (0.35) (1.01)
Closing defined benefit obligation 50.58 127.79
 THE UNSTOPPABLE
ENERGY SOLDIERS
Post-retirement medical benefits: Funded
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening defined benefit obligation 9,075.40 7,738.30
Current service cost 589.30 587.90
Interest cost 618.00 602.00
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in demographic 951.70 -
assumptions
Actuarial (gains)/losses arising from changes in financial 487.00 1,068.20
assumptions
Actuarial (gains) / losses arising from experience adjustments (288.00) (393.70)
Past service cost, including losses/(gains) on curtailments - -
Benefits paid (582.70) (527.30)
Closing defined benefit obligation 10,850.70 9,075.40

49.11 The amount included in the Group Balance sheet arising from the entity’s obligation in respect of its
defined benefit plan and other long term employee benefits is as follows :

Gratuity Funded
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 33,187.99 34,661.41
Fair value of plan assets 31,965.39 33,999.07
Funded status (1,222.60) (662.34)
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 1,222.60 662.34

The amounts included in the fair value of plan assets of gratuity fund in respect of Reporting Enterprise’s own
financial instruments and any property occupied by, or other assets used by the reporting enterprise are Nil (As
at March 31, 2020 Nil).
606
Leave
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 31,163.14 29,477.36
Fair value of plan assets 24,159.07 26,120.76
Funded status (7,004.07) (3,356.60)
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 7,004.07 3,356.60
 ANNUAL REPORT
2020-21
Post-retirement medical benefits: Unfunded
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 52,291.54 50,005.57
Fair value of plan assets NA NA
Funded status NA NA
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 52,291.54 50,005.57

Terminal Benefits:
(` in million)
Year Ended Year Ended
Particulars

Consolidated Financial Statements

31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 1,643.71 1,567.36
Fair value of plan assets - -
Funded status NA NA
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 1,643.71 1,567.36

Pension:
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 170.90 187.80
Fair value of plan assets - -
Funded status NA NA
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 170.90 187.80

Ex- Gratia:
(` in million)
607
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 281.20 219.20
Fair value of plan assets - -
Funded status NA NA
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 281.20 219.20
 THE UNSTOPPABLE
ENERGY SOLDIERS
Gratuity Unfunded:
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 50.58 127.79
Fair value of plan assets - -
Funded status NA NA
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 50.58 127.79

Post-Retirement Medical Benefits: Funded

(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Present value of funded defined benefit obligation 10,850.70 9,075.40
Fair value of plan assets 9,773.80 7,491.70
Funded status (1,076.90) (1,583.70)
Restrictions on asset recognized NA NA
Net liability arising from defined benefit obligation 1,076.90 1,583.70

49.12 Movements in the fair value of the plan assets are as follows :

Gratuity:
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening fair value of plan assets 33,999.07 36,419.67
Adjustment in opening corpus consequent to audit 29.91 15.91
Expected return on plan assets 2,320.05 2,830.43
Return on plan assets (excluding amounts included in net interest 60.99 75.10
expense)
Contributions from the employer 1,014.71 201.98
608
Benefits paid (5,459.33) (5,544.01)
Closing fair value of plan assets 31,965.39 33,999.07
Expected Contribution in respect of Gratuity for next year will be `1,432.95 million (For the year ended March 31,
2020 `1,412.94 million).

The group has recognized a gratuity liability of `87.73 million as on March 31, 2021 (As at March 31, 2020
`102.47 million) as per actuarial valuation for 190 employees (As at March 31, 2020 – 222 employees) contingent
Employees engaged in different work centers.
 ANNUAL REPORT
2020-21
Leave:
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening fair value of plan assets 26,120.76 23,725.32
Adjustment in opening corpus consequent to audit (161.45) 217.37
Expected return on plan assets 1,765.23 1,860.35
Return on plan assets (excluding amounts included in net interest 124.34 282.92
expense)
Contributions from the employer 3,342.14 6,564.52
Benefits paid (7,031.96) (6,529.72)
Closing fair value of plan assets 24,159.07 26,120.76

Consolidated Financial Statements

Post-Retirement Medical Benefits:
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Opening fair value of plan assets 7,491.70 7,683.00
Adjustment in opening corpus consequent to audit - -
Expected return on plan assets 510.20 597.70
Return on plan assets (excluding amounts included in net interest 143.20 (852.40)
expense)
Contributions from the employer 1,628.70 63.40
Benefits paid - -
Closing fair value of plan assets 9,773.80 7,491.70

49.13 The fair value of the plan assets at the end of the reporting period for each category, are as follows.
(` in million)
Year Ended Year Ended
Particulars
31-Mar-21 31-Mar-20
Gratuity:
Cash and cash equivalents 0.05 24.20
609
Investments in Mutual Fund:
- Mutual Fund 21.84 20.71
Debt investments categorized by issuers’ credit rating:
AAA 1,095.90 1,252.10
AA+ 398.51 397.94
AA 18.03 -
AA- 1.00 -
A+ 2.00 7.01
 THE UNSTOPPABLE
ENERGY SOLDIERS

Year Ended Year Ended

Particulars
31-Mar-21 31-Mar-20
Group Gratuity Cash Accumulation Scheme (Traditional Fund)
Insurance Companies 28,968.98 30,995.15
Investment in Govt. Securities 120.63 121.13
Bank TDR 687.10 800.52
Net Current Assets 651.35 380.31
Total Gratuity 31,965.39 33,999.07

Leave:
100% managed by insurance company 24,159.07 26,120.76

Post-Retirement Medical Benefits:

100% managed by insurance company 9,773.80 7,491.70
Total 65,898.26 67,611.53

49.13.1 The fair values of the above equity and debt instruments are determined based on quoted market
prices in active markets.
49.13.2 Cost of Investment is taken as fair value of Investment in Unit Linked Plan of Insurance Group (ULIPs)
and Bank TDR.
49.13.3 All Investments in PSU Bonds, Government Securities and Treasury Bills are quoted in active market.
49.13.4 Fair value of Investment in Group Gratuity Cash Accumulation Scheme (Traditional Fund) of Insurance
Group is taken as book value on reporting date.
49.13.5 Net Current Assets represent Accrued Interest on Investments minus outstanding gratuity
reimbursements as on reporting date.
49.13.6 The actual return on plan assets of gratuity during FY 2020-21 was `1,852.21 million (during FY 2019-
20 `2,293.37 million) and for Leave `1,889.57 million (during FY 2019-20 `2,143.27 million)
49.14 Significant actuarial assumptions for the determination of the defined obligation are discount rate and
expected salary increase. The sensitivity analyses below have been determined based on reasonably
610 possible changes of the respective assumptions occurring at the end of the reporting period, while
holding all other assumptions constant.
 ANNUAL REPORT
2020-21
49.14.1 Sensitivity Analysis as at March 31, 2021

For ONGC and OVL:

(` in million)
Post- Terminal
Retirement
Significant actuarial assumptions Gratuity Leave Medical
Benefits
Benefits
Discount Rate
- Impact due to increase of 50 basis points (735.56) (1,116.71) (2,489.48) (59.31)
- Impact due to decrease of 50 basis points 701.55 1,213.96 2,565.16 53.04
Salary increase

Consolidated Financial Statements

- Impact due to increase of 50 basis points 176.71 1,183.81 - -
- Impact due to decrease of 50 basis points (269.13) (1,100.33) - -
Cost increase
- Impact due to increase of 50 basis points - - 2,487.71 53.64
- Impact due to decrease of 50 basis points - - (2,550.64) (51.58)

For HPCL:

(` in million)
Resettlement
31-Mar-21 Gratuity PRMBS Pension Ex-Gratia
Allowance
Delta effect of +1% Change in (478.70) (1,330.60) (6.60) (7.90) (7.30)
Rate of Discounting
Delta effect of -1% Change in Rate 553.60 1,701.30 7.30 8.50 8.60
of Discounting
Delta effect of +1% Change in - 1,707.10 - - -
Future Benefit cost inflation
Delta effect of -1% Change in - (1,340.70) - - -
Future Benefit cost inflation
611
Delta effect of +1% Change in 99.20 - - - -
Rate of Salary Increase
Delta effect of -1% Change in Rate (121.80) - - - -
of Salary Increase
Delta effect of +1% Change in 154.40 - - - (8.00)
Rate of Employee Turnover
Delta effect of -1% Change in Rate (174.60) - - - 9.40
of Employee Turnover
 THE UNSTOPPABLE
ENERGY SOLDIERS
For MRPL:
Sensitivity Analysis as at March 31, 2021
(` in million)
Post-Retirement
Significant actuarial assumptions Gratuity Medical Benefits Resettlement
Allowance
Rate of discounting
- Impact due to increase of 50 basis (72.76) (7.41) (1.19)
points
- Impact due to decrease of 50 basis 79.05 8.27 1.32
points
Rate of salary increase
- Impact due to increase of 50 basis 76.70 - 1.31
points
- Impact due to decrease of 50 basis (73.31) - (1.19)
points
Rate of Employee turnover
- Impact due to increase of 50 basis 3.70 (3.00) -
points
- Impact due to decrease of 50 basis (3.80) 2.76 -
points

For OMPL:
Sensitivity Analysis as at March 31, 2021
(` in million)
Post-Retirement
Significant actuarial assumptions Medical Gratuity
Benefits
Discount Rate
- Impact due to increase of 50 basis points (gratuity) and 100 basis points (0.79) (7.53)
(PRMS)
- Impact due to decrease of 50 basis points (gratuity) and 100 basis 0.90 8.38
612 points (PRMS)
Salary increase
- Impact due to increase of 50 basis points - 6.61
- Impact due to decrease of 50 basis points - (6.45)
Employee turnover
- Impact due to increase of 50 basis points - (0.65)
- Impact due to decrease of 50 basis points - 0.69
 ANNUAL REPORT
2020-21
49.14.2 Sensitivity Analysis as at March 31, 2020
For ONGC and OVL:
(` in million)
Post- Terminal
Retirement
Significant actuarial assumptions Gratuity Leave
Medical
Benefits
Discount Rate
- Impact due to increase of 50 basis points (602.05) (985.50) (2,358.75) (41.97)
- Impact due to decrease of 50 basis points 805.36 1,067.26 2,578.04 45.04
Salary increase
- Impact due to increase of 50 basis points 288.68 1,054.88 - -
- Impact due to decrease of 50 basis points (137.16) (983.73) - -

Consolidated Financial Statements

Cost increase
- Impact due to increase of 50 basis points - - 2,500.50 44.94
- Impact due to decrease of 50 basis points - - (2,391.36) (42.26)

For HPCL:
(` in million)
Resettlement
31-Mar-20 Gratuity PRMBS Pension Ex - Gratia
Allowance
Delta effect of +1% Change in (478.50) (1,098.10) (6.90) (6.50) (7.60)
Rate of Discounting
Delta effect of -1% Change in Rate 550.60 1,399.10 7.50 7.00 8.80
of Discounting
Delta effect of +1% Change in - 1,403.50 - - -
Future Benefit cost inflation
Delta effect of -1% Change in - (1,106.80) - - -
Future Benefit cost inflation
Delta effect of +1% Change in 128.80 - - - -
Rate of Salary Increase
613
Delta effect of -1% Change in Rate (151.60) - - - -
of Salary Increase
Delta effect of +1% Change in 141.10 - - - (8.30)
Rate of Employee Turnover
Delta effect of -1% Change in Rate (159.30) - - - 9.70
of Employee Turnover
 THE UNSTOPPABLE
ENERGY SOLDIERS
For MRPL:
Sensitivity Analysis as at March 31, 2020
(` in million)
Gratuity Post-Retirement Resettlement
Significant actuarial assumptions Medical Benefits
Allowance
Rate of discounting
- Impact due to increase of 50 basis points (54.57) (6.51) (1.24)
- Impact due to decrease of 50 basis points 59.25 7.26 1.38
Rate of salary increase
- Impact due to increase of 50 basis points 18.71 - 1.36
- Impact due to decrease of 50 basis points (18.99) - (1.24)
Rate of Employee turnover
- Impact due to increase of 50 basis points 15.18 (2.76) -
- Impact due to decrease of 50 basis points (16.10) 2.51 -

For OMPL:
Sensitivity analysis as at March 31, 2020
(` in million)
Post- Gratuity
Retirement
Significant actuarial assumptions
Medical
Benefits
Discount Rate
- Impact due to increase of 50 basis points (gratuity) and 100 basis points - (6.57)
(PRMS)
- Impact due to decrease of 50 basis points (gratuity) and 100 basis points - 7.34
(PRMS)
Salary increase
- Impact due to increase of 50 basis points - 6.18
- Impact due to decrease of 50 basis points - (6.00)
614
Employee turnover
- Impact due to increase of 50 basis points - (0.81)
- Impact due to decrease of 50 basis points - 0.87
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of
the assumptions may be correlated. Sensitivity due to mortality & withdrawals are not material & hence impact
of change not calculated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same as
that applied in calculating the defined benefit obligation liability recognized in the balance sheet.
 ANNUAL REPORT
2020-21
49.15 Maturity Profile of Defined Benefit Obligation and other long term employee benefits:

For ONGC and OVL:

(` in million)
Defined Benefit: 31-Mar-21 31-Mar-20
Gratuity:
Less than One Year 3,852.75 4,513.63
One to Three Years 5,778.39 6,376.55
Three to Five Years 4,079.56 4,381.38
More than Five Years 9,342.65 9,573.59
Leave:
Less than One Year 4,918.52 4,260.45
One to Three Years 6,998.55 6,818.00

Consolidated Financial Statements

Three to Five Years 5,376.22 4,953.29
More than Five Years 13,854.45 13,431.16

For HPCL:

(` in million)
31-Mar-21 Less than 1 1-2 Year 2-5 Year 6-10 Year
Year
Gratuity 1,317.60 840.00 3,264.26 9,893.72
PRMBS 507.00 550.50 1,942.98 3,236.30
Pension 24.50 24.10 70.25 105.10
Ex - Gratia 53.00 51.90 147.84 214.10
Resettlement Allowance 13.60 8.10 39.06 155.87
Total 1,915.70 1,474.60 5,464.38 13,605.09

(` in million)
31-Mar-20 Less than 1 1-2 Year 2-5 Year 6-10 Year
Year
Gratuity 1,204.80 752.20 3,282.70 10,022.20
PRMBS 420.00 458.90 1,638.60 2,767.10 615
Pension 27.90 27.60 81.00 126.60
Ex - Gratia 40.50 39.90 116.10 177.60
Resettlement Allowance 13.10 7.20 41.80 162.90
Total 1,706.30 1,285.80 5,160.20 13,256.40
 THE UNSTOPPABLE
ENERGY SOLDIERS
For MRPL:
(` in million)
Defined Benefit: 31-Mar-21 31-Mar-20
Gratuity:
Less than One Year 66.73 66.61
One to Three Years 129.49 116.46
Three to Five Years 149.23 134.14
More than Five Years 610.84 462.47
Post-Retirement Medical Benefits:
Less than One Year 3.11 2.95
One to Three Years 6.72 6.27
Three to Five Years 7.79 7.12
More than Five Years 28.74 25.25
Resettlement Allowance:
Less than One Year 0.49 0.50
One to Three Years 0.91 0.92
Three to Five Years 1.00 0.97
More than Five Years 3.22 3.05

For PMHBL:
(` in million)
Defined Benefit: 31-Mar-21 31-Mar-20
Gratuity:
Less than One Year - -
One to Three Years - -
Three to Five Years - -
More than Five Years 9.54 9.54

616 Leave:
Less than One Year - -
One to Three Years - -
Three to Five Years - -
More than Five Years 14.46 14.46
50 Segment Reporting
50.1 The Group has identified and reported segments taking into account the different risks and returns, the organization structure and the
internal reporting systems. These have been organized into the following geographical and business segments:

Geographical Segments

A. In India –
• Offshore • Onshore
B. Outside India
Business Segments
A. Exploration and Production B. Refining & Marketing
50.2 Segment revenue, results, assets and liabilities
50.2.1 The following is an analysis of the Group’s revenue, results, assets and liabilities from continuing operations by reportable segment.
(` in million)
Particulars 2020-21
In India Outside India Unallocated Elimination Grand Total
of Inter
E&P Refining & E&P
Segment
Marketing
Offshore Onshore Sales
Segment Revenue
External Sales 312,334.34 217,518.45 2,959,151.88 116,459.05 259.38 - 3,605,723.10
Inter Segment Sales 132,422.80 17,674.18 257,041.17 3,192.65 514.26 (410,845.06) -
Revenue from Operations 444,757.14 235,192.63 3,216,193.05 119,651.70 773.64 (410,845.06) 3,605,723.10

Segment Result-Profit/ 137,456.70 14,832.78 131,703.52 26,813.92 310,806.93

(loss)
Unallocated Corporate 10,527.66 10,527.66

ANNUAL REPORT
Expenses
Total 137,456.70 14,832.78 131,703.52 26,813.92 (10,527.66) 300,279.27
Finance costs 50,790.31 50,790.31
Interest income 26,008.70 26,008.70

2020-21
Dividend Income 15,405.19 15,405.19
617

Consolidated Financial Statements

 618
Particulars 2020-21

ENERGY SOLDIERS
THE UNSTOPPABLE
In India Outside India Unallocated Elimination Grand Total
of Inter
E&P Refining & E&P
Segment
Marketing
Offshore Onshore Sales
Share of profit / (loss) of joint 2,674.25 7,097.92 421.45 10,193.62
ventures and associates
Profit before tax 137,456.70 14,832.78 134,377.77 33,911.84 (19,482.63) 301,096.47
Income taxes 87,662.01 87,662.01
Profit for the year 213,434.46
Segment Assets 1,396,763.47 677,195.82 1,665,320.96 1,173,182.78 4,912,463.02
Unallocated Corporate 520,183.10 520,183.10
Assets

Total Assets 1,396,763.47 677,195.82 1,665,320.96 1,173,182.78 520,183.10 5,432,646.13

Segment Liabilities 451,485.04 147,941.27 1,231,964.40 638,679.78 2,470,070.49

Unallocated Corporate 536,607.76 536,607.76
Liabilities
Total Liabilities 451,485.04 147,941.27 1,231,964.40 638,679.78 536,607.76 3,006,678.25

Other Information
Depreciation* 106,481.47 49,217.18 47,504.75 44,519.96 1,273.95 248,997.31
Impairment (including 14,706.30 (22,069.24) - 4,562.66 - (2,800.28)
related exceptional item)**
Other Non-cash Expenses 2,790.82 972.85 6,996.09 827.57 190.30 11,777.63
 (` in million)

Particulars 2019-20^
In India Outside India Unallocated Elimination of Grand Total
Inter Segment
E&P Refining & E&P
Sales
Marketing
Offshore Onshore
Segment Revenue
External Sales 467,975.66 302,198.42 3,323,784.33 155,067.67 584.67 - 4,249,610.75
Inter Segment Sales 167,242.56 22,460.06 155,695.55 0.11 521.22 (345,919.50) -
Revenue from 635,218.22 324,658.48 3,479,479.88 155,067.78 1,105.89 (345,919.50) 4,249,610.75
Operations

Segment Result-Profit/ 220,612.61 (1,019.04) (21,834.10) 36,410.14 234,169.61

(loss)
Unallocated Corporate 15,946.68 15,946.68
Expenses
Total 220,612.61 (1,019.04) (21,834.10) 36,410.14 (15,946.68) 218,222.93
Finance costs 74,893.39 74,893.39
Interest income 27,889.25 27,889.25
Dividend Income 9,074.21 9,074.21
Share of profit / (loss) 786.14 14,182.29 (5,636.98) 9,331.45
of joint ventures and
associates
Profit before tax 220,612.61 (1,019.04) (21,047.96) 50,592.43 (59,513.59) 189,624.45

ANNUAL REPORT
Income taxes 75,061.86 75,061.86
Profit for the year 114,562.59

2020-21
619

Consolidated Financial Statements

 620
Particulars 2019-20^

ENERGY SOLDIERS
THE UNSTOPPABLE
In India Outside India Unallocated Elimination of Grand Total
Inter Segment
E&P Refining & E&P
Sales
Marketing
Offshore Onshore

Segment Assets 1,318,331.77 631,812.87 1,466,249.63 1,190,433.61 4,606,827.87

Unallocated Corporate 493,348.26 493,348.26
Assets

Total Assets 1,318,331.77 631,812.87 1,466,249.63 1,190,433.61 493,348.26 5,100,176.14

Segment Liabilities 421,127.49 159,203.57 1,090,767.61 675,132.40 2,346,231.08
Unallocated Corporate 518,841.64 518,841.64
Liabilities
Total Liabilities 421,127.49 159,203.57 1,090,767.61 675,132.40 518,841.64 2,865,072.72

Other Information
Depreciation* 115,835.07 52,174.93 44,225.44 35,885.35 1,363.31 249,484.10
Impairment (including 33,841.47 32,013.71 - 31,265.00 - 97,120.18
related exceptional
item)**
Other Non-cash 6,961.02 1,484.13 1,022.29 17,828.30 31.43 27,327.17
Expenses

^ Restated, refer Note No.64 *Also includes depletion and amortization ** For details of Exceptional items, refer Note No. 45
 ANNUAL REPORT
2020-21
50.2.2 Segment revenue reported above represents 50.4 Information about major customers
revenue generated from external customers.
Group’s significant revenues are derived
50.2.3 The accounting policies of the reportable
from sales to Oil Marketing Companies and
segments are the same as the Group’s
accounting policies described in Note 3. International Oil Companies (IOCs).
Segment result represents the profit before No other single customer contributed 10%
tax earned by each segment excluding
or more to the Group’s revenue for the year
finance cost and other income like interest/
2020-21 and 2019-20.
dividend income. This is the measure
reported to the chief operating decision 50.5 Information about geographical areas:
maker for the purposes of resource allocation
and assessment of segment performance. • The Group is domiciled in India. The amount
50.2.4 Segment revenue, results, assets and liabilities of its revenue from external customers broken
include the respective amounts identifiable to down by location of customers is tabulated
each of the segments and amount allocated below:
on reasonable basis. Unallocated expenditure

Consolidated Financial Statements

(` in million)
includes common expenditure incurred for
all the segments and expenses incurred at Location Year ended Year ended
the corporate level. Finance cost includes March 31, March 31,
unwinding of discount on decommissioning 2021 2020
liabilities not allocated to segment.
50.3 Additions to non- current assets India 3,328,332.79 3,768,265.12
50.3.1 In respect of the Company, the addition Other Countries 277,390.31 481,345.63
to Non-current assets other than financial (including SEZ)
instruments, deferred tax assets, post-
Total 3,605,723.10 4,249,610.75
employment benefit assets:
(` in million) • The total of non-current assets other than
Particulars Year ended Year ended financial instruments, deferred tax assets,
March 31, March 31, post-employment benefit assets, broken
2021 2020 down by location of assets are shown below:
Offshore 53,003.06 58,049.98
(` in million)
Onshore 27,050.27 14,166.24
Unallocated 988.50 (1,356.41) Location Year ended Year ended
Total 81,041.83 70,859.81 March 31, March 31,
50.3.2 In respect of the subsidiaries, OVL, MRPL, 2021 2020
PMHBL and HPCL the addition to Non-current India 2,851,381.30 2,663,172.92 621
assets other than financial instruments,
deferred tax assets, post-employment benefit Other Countries 764,317.29 769,009.05
assets: Total 3,615,698.59 3,432,181.97
(` in million)
50.6 Information about products and services:
Particulars Year ended Year ended
March 31, March 31, The Group derives revenue from sale of crude
2021 2020 oil, natural gas, value added products and
OVL (4,895.08) 55,490.14 downstream (Refinery and Petrochemicals)
MRPL (2,698.68) 5,069.03 operations.
HPCL 110,106.40 154,922.70
PMHBL (37.86) 194.25
 THE UNSTOPPABLE
ENERGY SOLDIERS
51 Related party transactions
51.1 Name of related parties and description of relationship:

A. Subsidiaries
1. ONGC Videsh Limited (OVL)
1.1. ONGC Nile Ganga B.V. (ONGBV)
1.1.1. ONGC Campos Limiteda
1.1.2. ONGC Nile Ganga (San Cristobal) B.V.
1.2. ONGC Amazon Alaknanda Limited (OAAL)
1.3. ONGC Narmada Limited (ONL)
1.4. ONGC (BTC) Limited
1.5. Carabobo One AB
1.5.1. Petro Carabobo Ganga B.V.
1.6. Imperial Energy Limited
1.6.1. Imperial Energy Tomsk Limited
1.6.2. Imperial Energy (Cyprus) Limited
1.6.3. Imperial Energy Nord Limited
1.6.4. Biancus Holdings Limited
1.6.5. Redcliffe Holdings Limited
1.6.6. Imperial Frac Services (Cyprus) Limited
1.6.7. San Agio Investments Limited
1.6.8. LLC Sibinterneft
1.6.9. LLC Allianceneftegaz
1.6.10. LLC Nord Imperial
1.6.11. LLC Rus Imperial Group
1.6.12. LLC Imperial Frac Services
1.7. Beas Rovuma Energy Mozambique Limited
1.8. ONGC Videsh Rovuma Limited
1.9. ONGC Videsh Atlantic Inc.
622
1.10. ONGC Videsh Singapore Pte. Limited
1.10.1. ONGC Videsh Vankorneft Pte. Limited
1.11. Indus East Mediterranean Exploration Limited
1.12 ONGC Videsh Rovuma Limited [(incorporated in Republic of Mauritius) wound up during the year]
2. Mangalore Refinery and Petrochemicals Limited (MRPL)
2.1 ONGC Mangalore Petrochemicals Limited (OMPL)
3. Hindustan Petroleum Corporation Limited (HPCL)
 ANNUAL REPORT
2020-21
3.1. Prize Petroleum Company Limited
3.1.1 Prize Petroleum International Pte. Limited
3.2. HPCL Biofuels Limited
3.3. HPCL Middle East FZCO
3.4 HPCL Shapoorji Energy Pvt. Limited
4. Petronet MHB Limited

B. Joint Ventures
1. Mangalore SEZ Limited (MSEZ)
2. ONGC Petro additions Limited (OPaL)
3. ONGC Tripura Power Company Limited (OTPC)
4. ONGC Teri Biotech Limited (OTBL)

Consolidated Financial Statements

5. Dahej SEZ Limited (DSEZ)
6. Indradhanush Gas Grid Limited (IGGL)
7. ONGC Mittal Energy Limited (OMEL) (through OVL)
8. Sudd Petroleum Operating Company (through OVL)
9. Mansarovar Energy Colombia Limited, Colombia (through OVL)
10. Himalaya Energy Syria BV, Netherlands (through OVL)
11. Shell MRPL Aviation Fuels and Services Limited (SMASL) (through MRPL)
12. Hindustan Coals Private Limited (through HPCL)
13. HPOIL Gas Pvt. Limited.(through HPCL)
14. HPCL Rajasthan Refinery Limited.(through HPCL)
15. South Asia LPG Co. Pvt. Limited.(through HPCL)
16. HPCL - Mittal Energy Limited.(through HPCL)
16.1 HPCL Mittal Pipeline Limited (through HPCL)
17. Godavari Gas Pvt Limited.(through HPCL)
18. Petronet India Limited. (through HPCL, in process of voluntary winding up w.e.f. August 30, 2018)
19. Mumbai Aviation Fuel Farm Facilities Pvt. Limited (through HPCL).
20. Aavantika Gas Limited.(through HPCL) 623
21. Bhagyanagar Gas Limited. (through HPCL)
22. Ratnagiri Refinery & Petrochemical Limited.(through HPCL)
23. IHB Pvt. Limited.(through HPCL)
24. Mangalore STP Limited (through MSEZ)
25. MSEZ Power Limited (through MSEZ)
26. Adani Petronet Dahej Port Pvt Limited (APPPL) (through PLL)
27. India LNG Transport Company Private Limited (through PLL)
28. North East Transmission Company Limited (NETC) (through OTPC)
 THE UNSTOPPABLE
ENERGY SOLDIERS
C. Associates
1. Pawan Hans Helicopters Limited.
2. Petronet LNG Limited (PLL)
3. Rohini Heliport Limited
4. Moz LNG1 Holding Company Limited (through OVL)
5. Petro Carabobo S.A., Venezuela (through OVL)
6. Carabobo Ingenieria Y Construcciones, S.A, Venezuela (through OVL)
7. Petrolera Indovenezolana SA, Venezuela (through OVL)
8. South East Asia Gas Pipeline Limited, Hongkong (through OVL)
9. Tamba BV, The Netherlands (through OVL)
10. JSC Vankorneft, Russia (through OVL)
11. Falcon Oil & Gas BV, Netherlands (through OVL)
12. GSPL India Gasnet Limited. (through HPCL)
13. GSPL India Transco Limited. (through HPCL)

D. Trusts (including post retirement employee benefit trust) wherein ONGC having control
1. ONGC Contributory Provident Fund Trust
2. ONGC CSSS Trust
3. ONGC Sahyog Trust
4. ONGC PRBS Trust
5. ONGC Gratuity Fund
6. ONGC Energy Center
7. ONGC Foundation
8. ONGC Start Up Fund Trust
9. MRPL Gratuity Fund Trust (through MRPL)
10. MRPL Provident Fund Trust (through MRPL)
11. Ujjwala Plus Foundation, (through HPCL)

E. Key Management Personnel

624
E.1. Whole-time Directors
1. Shri Shashi Shanker, Chairman & Managing Director (up to March 31,2021)
2. Shri Subhash Kumar, Director (Finance) and additional charge w.e.f. April 01, 2021 as Chairman &
Managing Director
3. Dr. Alka Mittal, Director (HR)
4. Shri Rajesh Kumar Srivastava, Director (Exploration)
5. Shri O.P. Singh, Director(T&FS) (w.e.f April 01,2020)
6. Shri Rajesh Kakkar , Director (Offshore)
7. Shri Sanjay Kumar Moitra, Director (Onshore) (upto May 31,2020)
8. Shri Anurag Sharma, Director (Onshore) (w.e.f June 01 2020)
 ANNUAL REPORT
2020-21
9. Shri Vivek C Tongaonkar, Chief Financial Officer w.e.f. April 23, 2021
E.2. Company Secretary
1. Shri M E V Selvamm, Company Secretary

E.3. Independent Directors

1. Smt. Ganga Murthy (up to September 07, 2020)
2. Shri Amitava Bhattacharya

E.4. Government Nominee – Directors

1. Shri Amar Nath
2. Shri Rajesh Madanlal Aggarwal

Consolidated Financial Statements

F.1 Key Management personnel of the subsidiaries
1. Mr. Shashi Shanker, Managing Director,( upto October 31, 2019 on additional charge), OVL
2. Mr. Vivekanand, Director (Finance) , OVL
3. Mr. G S Chaturvedi, Director (Exploration) , OVL
4. Mr. Alok Kumar Gupta, Director (Operations) w.e.f September 4, 2019, OVL
5. Shri Mukesh Kumar Surana, Chairman & Managing Director, HPCL
6. Shri Pushp Kumar Joshi, Director - Human Resources, HPCL
7. Shri Vinod S. Shenoy, Director – Refineries, HPCL
8. Shri R. Kesavan, Director - Finance (effective 05th September 2019), HPCL
9. Shri Rakesh Misri, Director - Marketing (effective 17th October 2019), HPCL
10. Shri. M. Venkatesh Managing Director, MRPL
11. Shri Sanjay Verma, Director (Refinery), from June 09, 2020, MRPL
12. Smt. Pomila Jaspal, Director (Finance), MRPL
13. Shri Subhash Kumar – Chairman, PMHBL
14. Shri M Selvakumar, MD (resigned effective April 30, 2020), PMHBL
15. Shri. R. Sridhar - Director ,PMHBL
16. Shri Rakesh Kaul, Director ,PMHBL 625
17. Shri Venkatesh Madhava Rao, Director, PMHBL
18. Shri J S Prasad, Director, PMHBL
19. Shri C Sridhar Goud, Director , PMHBL
20. Shri C Ramkrishnan- Managing Director, (appointment effective May 1, 2020), PMHBL
21. Smt Pomila Jaspal , Director, PMHBL

F.2 Independent Director

1. Mr. Ajai Malhotra upto November 19, 2019,OVL
2. Mr. Bharatendu Nath Srivastava ,OVL
 THE UNSTOPPABLE
ENERGY SOLDIERS
3. Smt. Kiran Oberoi Vasudev ,OVL
4. Mr. Rakesh Kacker ,OVL
5. Shri Amar Sinha , HPCL (Upto 20th September 2020)
6. Shri Siraj Hussain , HPCL (Upto 20th September 2020)
7. Shri G. Rajendran Pillai , HPCL

F.3 Government nominee Director

1. Mr. B N Reddy ,OVL
2. Mr. Baldeo Purushartha ,OVL
3. Mr. Kumar V. Pratap, OVL
3. Shri Sunil Kumar, HPCL
4. Shri Subhash Kumar, HPCL

F.4 Other Non Executive Directors

1. Shri Vinod S. Shenoy, Nominee Director (HPCL), MRPL
2. Shri Subhash Kumar, Nominee Director (ONGC) , MRPL
3. Shri V.P. Haran, Independent Director, till September 07, 2020, MRPL
4. Shri Sewa Ram, Independent Director, till September 07, 2020, MRPL
5. Dr. G. K. Patel, Independent Director, till September 07, 2020, MRPL
6. Shri Balbir Singh Yadav, Independent Director, till September 07, 2020, MRPL
7. Shri Rohit Mathur, Director (Govt. Nominee), (w.e.f December 10, 2020),MRPL
8. Shri R T Agarwal, Independent Director, MRPL
9. Shri Vijay Sharma, Government Nominee, (till August 04, 2020), MRPL
10. Shri Sunil Kumar, Director (Government Nominee), till December 10, 2020, MRPL
11. Ms. Esha Srivastava, Director (Govt. Nominee), (w.e.f December 10, 2020),MRPL
12. Shri Shashi Shanker (Chairman) (up to 31st March 2021), OMPL
13. Shri Anurag Sharma, Director (w.e.f 05th June 2020) , OMPL
14. Shri Sanjay Varma, Director (w.e.f 26th June 2020), OMPL
15. Shri. M. Venkatesh Director, OMPL
626
16. Shri. Rajesh Shyamsunder Kakkar, OMPL
17. Shri Sanjay Kumar Moitra (up to 31st May 2020) ,OMPL
18. Smt Alka Mittal, Director , OMPL
19. Smt Pomila Jaspal, Director , OMPL
20. Shri Vinayakumar, Director (up to 31st May 2020)

F.5 CFO & Company Secretary

1. Shri Dinesh Mishra, Company Secretary, MRPL
2. Smt. Pomila Jaspal, Director (Finance) & CFO, MRPL
 ANNUAL REPORT
2020-21
3. Shri. Sujir S Nayak,Chief Executive Officer, OMPL
4. Shri. Surendra Nayak, Chief Financial Officer,OMPL
5. Shri. K.B. Shyam Kumar, Company Secretary, OMPL
6. Mr. Rajni Kant, OVL
7. Shri Chandan Kumar Das, CFO, PMHBL
8. Shri Sachin Jayaswal, Company Secretary, PMHBL
9. Shri. Surinder Pal Singh Chawla, Chief Financial Officer (w.e.f. 23rd October, 2020),OMPL
10. Shri V. Murali, Company Secretary, HPCL
Details of related party Transactions after elimination:

51.2.1 Transactions with Subsidiaries:

Intergroup related party transactions and outstanding balances with subsidiaries companies are

Consolidated Financial Statements

eliminated in the preparation of Consolidated Financial Statement of the group. Hence the same has not
been disclosed in group related party transactions.

51.2.2 Transactions with joint ventures

(` in million)
Year ended Year ended
Name of related party Nature of transaction March 31, March 31,
2021 2020
Purchase of products from:
a) HPCL-Mittal Energy Ltd. Petroleum product 225,449.30 381,681.6
b) Hindustan Colas Pvt. Ltd. Petroleum product 2,408.50 825.8
c) Shell MRPL Aviation Fuels and Contaminated Product 0.14 -
Services Ltd (SMAFSL)
Sale of products to:
a) ONGC Tripura Power Company Sale of natural gas 7,418.86 5,450.94
Ltd.
b) ONGC Petro additions Ltd. Sale of naphtha & C2-C3 43,172.95 52,730.53
627
c) Shell MRPL Aviation Fuels and Petroleum Products 2,226.71 7,409.25
Services Ltd (SMAFSL)
-
d) ONGC Petro additions Ltd
Transfer of Naptha Pipline 357.30 1,154.50
e) HPCL-Mittal Energy Ltd.
Petroleum Products 6,915.00 1,326.3
f) Hindustan Colas Pvt. Ltd.
Petroleum Products 2.20 4,823.8
g) South Asia LPG Company Pvt.
Ltd Petroleum Products 2.00
 THE UNSTOPPABLE
ENERGY SOLDIERS

Year ended Year ended

Name of related party Nature of transaction March 31, March 31,
2021 2020
Services received from:
a) ONGC Teri Biotech Limited Bio-remediation services 303.43 298.69
b) Dahej SEZ Limited Lease rent charges for SEZ land 15.30 13.99
and ROU charges for pipeline
c) MSEZ Limited Supplies and services received & 1,165.67 1,112.30
Lease rent
d) HPCL-Mittal Energy Ltd Other Services availed 160.60 161.60
e) Hindustan Colas Pvt. Ltd. Other Services availed 10.10 42.30
f) South Asia LPG Company Pvt. Other Services availed 922.70 910.30
Ltd.
Services provided to:
a) ONGC Petro additions Limited Manpower deputation, loading and - 10.18
other charges

ROU Charges for pipeline received 0.05 0.22

b) ONGC Teri Biotech Limited Field study charges and rent for 0.52 0.67
colony accommodation
c) ONGC Tripura Power Company Rent of office space 12.18 -
Limited
d) Shell MRPL Aviation Fuels and Reimbursement of Electrical 9.15 12.72
Services Ltd (SMAFSL) Charges & royalty income
e) HPCL-Mittal Energy Ltd. Manpower Supply Service, lease 182.10 207.80
rent & other services
f) Hindustan Colas Pvt. Ltd. Manpower Supply Service, lease 70.00 66.00
rent & other services
g) South Asia LPG Company Pvt. Manpower Supply Service, lease 23.50 18.20
628 Ltd. rent & other services
h) HPCL Shapoorji Energy Pvt. Manpower supply service 7.20 3.00
Ltd.
i) Indradhanush Gas Grid Limited Manpower deputation 16.80 22.03
(IGGL)
j) Sudd Petroleum Operating Deputation of manpower and other 86.51 86.96
Company, Mauritius charges
k) Himalaya Energy Syria BV, The Deputation of manpower and other 0.89 0.85
Netherlands (through ONGC charges
Nile Ganga B.V.)
 ANNUAL REPORT
2020-21

Year ended Year ended

Name of related party Nature of transaction March 31, March 31,
2021 2020
Dividend Income from:
a) ONGC Tripura Power Company Dividend Income 448.00 504.00
Limited
b) Shell MRPL Aviation Fuels and Dividend Income 37.50 6.00
Services Ltd (SMAFSL)
c) Hindustan Colas Pvt. Ltd. Dividend Income 590.60 189.00
d) South Asia LPG Company Pvt. Dividend Income 750.00 550.00
Ltd.
e) HPCL-Mittal Energy Ltd. Dividend Income - 500.30
Investment in equity

Consolidated Financial Statements

a) HPCL Shapoorji Energy Pvt. Ltd. Investment in equity shares / 7,400.00 1,510.00
Converted to Equity Shares
b) Indradhanush Gas Grid Limited Subscription to Equity 490.00 70.00
(IGGL)
Subscription of share warrants
a) ONGC Petro addition Limited Subscription of share warrants 8,709.09 -
Deemed Investments Non cash transaction (Ind AS fair valuations):
a) ONGC Petro addition Limited Deemed equity investment for 16.60 14.49
Financial guarantees of interest
on Compulsory Convertible
Debentures
Letter of Comfort:
a) ONGC Petro addition Limited Letter of Comfort against Non- - 21,800.00
Convertible Debentures

51.2.3 Outstanding balances with joint ventures

(` in million)
As at March As at March
Name of related party Nature of transaction
31, 2021 31, 2020
629
A. Amount receivable:
a) ONGC Petro additions Limited Trade and other 2,508.09 1,764.11
receivables
b) ONGC Petro additions Limited Transfer of Naptha - 1,362.19
Pipeline
c) ONGC Tripura Power Company Limited Trade and other 228.08 208.72
receivables
d) ONGC Teri Biotech Limited Trade and other - 0.07
receivables
 THE UNSTOPPABLE
ENERGY SOLDIERS

As at March As at March
Name of related party Nature of transaction
31, 2021 31, 2020
e) Indradhanush Gas Grid Limited (IGGL) Trade and other 4.56 8.61
receivables
f) Shell MRPL Aviation Fuels and Services Trade and other 342.32 318.56
Ltd (SMAFSL) receivables
g) HPCL-Mittal Energy Ltd. Trade and other 51.00 67.20
receivables
h) South Asia LPG Company Pvt. Ltd. Trade and other 0.60 1.10
receivables
i) HPCL Shapoorji Energy Pvt. Ltd. Trade and other 7.90 1.30
receivables
j) Mangalore SEZ Limited Trade and other - 182.02
receivables
k) Sudd Petroleum Operating Company, Trade and other 24.84 83.53
Mauritius receivables
l) Mansarovar Energy Colombia Limited, Trade and other - 8.82
Colombia (through ONGC Amazon receivables
Alaknanda Ltd.)
B. Amount payable:
a) ONGC Teri Biotech Limited Trade payables 52.41 30.43
b) ONGC Tripura Power Company Limited Security Deposit 5.39 -
c) Mangalore SEZ Limited Trade payables 119.16 126.63

d) HPCL-Mittal Energy Ltd. Trade payables 25,285.20 13,630.40

e) Hindustan Colas Pvt. Ltd. Trade payables 299.70 293.70

f) South Asia LPG Company Pvt. Ltd Trade payables 99.70 84.70
C. Loan & Advance outstanding:
a) ONGC Petro addition Limited Advance against 33,649.59 24,940.50
subscription to share
630 warrant
b) Mangalore SEZ Limited Capital advance & 27.91 31.50
security Deposit
c) Himalaya Energy Syria BV, The Loan Taken 307.60 297.92
Netherlands (through ONGC Nile Ganga
B.V.)
 ANNUAL REPORT
2020-21

As at March As at March
Name of related party Nature of transaction
31, 2021 31, 2020
D. Commitments:
a) ONGC Petro addition Limited Unpaid subscription of 862.81 639.50
share warrants
Backstopping support for 1,926.75 2,722.77
compulsory convertible
debentures-Interest
accrued
E. Letter of Comfort:
a) ONGC Petro addition Limited Letter of Comfort against 65,000.00 65,000.00
term loan
Letter of Comfort 30,000.00 30,000.00

Consolidated Financial Statements

against Non-Convertible
Debentures

51.2.3.1 During the Previous year 2019-20, the Company had approved the related party transaction for transfer
of Hazira Dahez Naptha Pipeline (HDNPL) to OPaL on as-is basis for a consideration of `1,653.40
million comprising `1,154.40 million (excludes GST) towards the cost incurred by Company for partially
completed HDNPL pipe line with associated facilities and `499.00 million towards Arbitration award and
other related legal expenses. As the amount of Arbitral award has neither been paid to the contractor
of HDNPL nor deposited with court till date as the same is being contested, the same has not been
invoiced to OPaL. Necessary action will be initiated on receipt of final award.

51.2.4 Transactions with associates

(` in million)

Year ended Year ended

Name of related party Nature of transaction March 31, March 31,
2021 2020
A. Purchase of products from:
a) Falcon Oil & Gas BV, Netherlands Purchase of Crude Oil 18,356.21 27,344.09
(through ONGC Nile Ganga B.V.)
B. Services received from:
a) Pawan Hans Limited (PHL) Hiring of helicopter services 1,288.38 1,236.59 631
Purchase of LNG 8,992.74 11,096.15
b) Petronet LNG Limited
Facilities charges 824.79 881.36
c) Falcon Oil & Gas BV, Netherlands Reimbursement of expense 2.42 3.46
(through ONGC Nile Ganga B.V.)
 THE UNSTOPPABLE
ENERGY SOLDIERS

Year ended Year ended

Name of related party Nature of transaction March 31, March 31,
2021 2020
C. Services provided to:
a) Pawan Hans Limited (PHL) Miscellaneous receipt
on account of liquidated
damages - 250.36

b) Falcon Oil & Gas BV, Netherlands Deputation of manpower 112.72 177.00
(through ONGC Nile Ganga B.V.) and other charges

c) Petrolera Indovenezolana SA, Deputation of manpower 81.98 136.71

Venezuela (through ONGC Nile and other charges
Ganga B.V.)

D. Dividend and interest income from:

a) Petronet LNG Limited (PLL) Dividend income 2,812.50 1,875.00
b) South East Asia Gas Pipeline Ltd, Interest income 247.56 339.56
Hongkong (through ONGC Nile
Ganga B.V.) Dividend income 661.52 789.42

c) Petrolera Indovenezolana SA, Interest income 101.62 113.25

Venezuela (through ONGC Nile
Ganga B.V.)
d) Falcon Oil & Gas BV, Netherlands Dividend income 2,376.45 -
(through ONGC Nile Ganga B.V.)
e) Tamba BV, The Netherlands Dividend income 1,002.57 1,531.76
(through ONGC Nile Ganga B.V.)
f) JSC Vankorneft, Russia (through Dividend income 15,927.75 30,162.43
ONGC Videsh Singapore Pte Ltd.)
E. Investment
a) Rohini Heliport Limited (RHL) Investment in Equity shares - 0.05
Investment in equity capital 1,424.69 23.61
632 b) Moz. LNG1 Holding Company Ltd.
(through OVRL)
Investment in equity capital 1,424.69 23.61
c) Moz. LNG1 Holding Company Ltd.
(through BREML)
Transfer of Investment in - 16.66
d) Mozambique LNG1 Co. Pte. Ltd.
equity capital
Transfer of Investment in 23.61 -
e) Moz. LNG1 Holding Company Ltd.
equity capital
F. Loans Repaid by:
a) South East Asia Gas Pipeline Ltd, Loan repaid by Associate 1,080.28 1,031.56
Hongkong (through ONGC Nile
Ganga B.V.)
 ANNUAL REPORT
2020-21
51.2.5 Outstanding balances with associates
(` in million)

As at March As at March
Name of related party Nature of transaction
31, 2021 31, 2020

A. Amount Receivable:

a) Falcon Oil & Gas BV, Netherlands Deputation of manpower 27.16 20.45
(through ONGC Nile Ganga B.V.) and other charges

b) Falcon Oil & Gas BV, Netherlands Reimbursement of 0.87 6.04

(through ONGC Nile Ganga B.V.) Expenses

c) Petrolera Indovenezolana SA, Dividend Receivable 30,337.99 31,159.50

Venezuela (through ONGC Nile
Ganga B.V.)

Consolidated Financial Statements

d) Falcon Oil & Gas BV, Netherlands Trade and other 6,042.26 -
(through ONGC Nile Ganga B.V.) receivables

B. Amount Payable:

a) Pawan Hans Limited (PHL) Trade payables 257.38 121.40

b) Petronet LNG Limited Trade payables 573.68 359.77

C. Loans and advance outstanding:

a) South East Asia Gas Pipeline Ltd, Loan Given 1,781.70 2,927.91
Hongkong (through ONGC Nile
Ganga B.V.)

b) South East Asia Gas Pipeline Ltd, Advances receivable 2,981.96 3,062.71
Hongkong (through ONGC Nile
Ganga B.V.)

c) Petrolera Indovenezolana SA, Loan Given 1,257.32 1,291.37

Venezuela (through ONGC Nile
Ganga B.V.)
633
d) Petrolera Indovenezolana SA, Accrued Interest 409.79 317.60
Venezuela (through ONGC Nile
Ganga B.V.)
 THE UNSTOPPABLE
ENERGY SOLDIERS
51.2.6 Transactions with Trusts
(` in million)

Nature of Year ended Year ended

Name of related party
transaction March 31, 2021 March 31, 2020
A. Remittance of payment:
a) ONGC Contributory Provident Fund Contribution 14,387.06 13,140.72
Trust
b) ONGC CSSS Trust Contribution 1,099.10 1,116.65
c) ONGC Sahyog Trust Contribution 23.85 24.86
d) ONGC PRBS Trust Contribution 12,166.16 11,413.57
e) MRPL Providend Fund Contribution 956.69 525.98
B. Reimbursement of Gratuity payment made on behalf of Trust:
a) ONGC Gratuity Fund Reimbursement 4,649.07 6,530.71
b) MRPL Gratuty fund Reimbursement 23.65 33.07
C. Services provided to:
a) ONGC Energy Center Rental income 7.70 -
D. Contribution to trust:
a) ONGC Energy Center For research and 100.00 125.00
development
b) ONGC Foundation CSR Expenditure 282.20 1,161.21

c) ONGC Start up Fund Trust Investment 79.21 -

51.2.7 Compensation of key management personnel

• Whole time directors and Company secretary

(` in million)

Particulars Year ended March 31, Year ended March 31,

2021 2020
Short term employee benefits 165.17 154.81
Post-employment benefits 29.86 32.87
Long-term benefits 10.24 12.72
634 Total 205.27 200.40

• Independent directors

Particulars Year ended March 31, Year ended March 31,

2021 2020
Sitting fees 6.43 18.34
Total 6.43 18.34

51.3 Disclosure in respect of Government related Entities

51.3.1 Name of Government related entities and description of relationship wherein significant amount of
transaction carried out:
 ANNUAL REPORT
2020-21

Sl no. Government related entities Relation

1. Indian Oil Corporation Limited Central PSU

2. GAIL (India) Limited Central PSU

3. Bharat Petroleum Corporation Limited Central PSU

4. Chennai Petroleum Corporation Limited Central PSU

5. Numaligarh Refinery Limited Central PSU

6. Kochi Refineries Limited Central PSU

7. Bharat Heavy Electricals Limited Central PSU

8. United India Insurance Company Limited Central PSU

Consolidated Financial Statements

9. Bharat Sanchar Nigam Limited Central PSU

10. Mahanagar Telephone Nigam Limited Central PSU

11. Balmer Lawrie & Co Limited Central PSU

12. Engineers India Limited Central PSU

13. Shipping Corporation of India Limited Central PSU

14. Indian Strategic Petroleum Reserves Limited (ISPRL) Central PSU

15. New Manngalore Port trust Central PSU

16. Brahmaputra Cracker and Polymer Limited Central PSU

17. Bharat Electronics Limited Central PSU

18. Bridge & Roof Co (India) Limited Central PSU

19. Konkan Railway Corporation Limited Central PSU

20. Central Warehousing Corporations Central PSU

21. National Insurance Company Limited Central PSU

22. New India Assurance Company Limited Central PSU 635

23. Oriental Insurance Co. Limited Central PSU

24. Coal India Limited Central PSU

25. Oil India Limited Central PSU

26. Bharat Pump and Compressor Limited Central PSU

27. North Eastern Electric Power Corporation Limited Central PSU

28. Bharat Petro Resources Limited ( BPRL) Central PSU

 THE UNSTOPPABLE
ENERGY SOLDIERS
51.3.2 Group Transactions with Government Related Entities
(` in million)

Name of related party Nature of transaction For the For the

year ended year ended
March 31, March 31,
2021 2020

Sale of products during year to:

a) Indian Oil Corporation Limited Sale of crude oil , C2-C3 , 283,893.42 374,849.56
SKO & LPG

b) Bharat Petroleum Corporation Ltd Sale of crude oil C2-C3, 117,317.35 175,315.00
SKO, HSD & LPG

c) Chennai Petroleum Corporation Ltd Sale of crude oil 42,158.73 55,012.99

d) Numaligarh Refinery Ltd Sale of crude oil 17,816.43 20,933.18

e) Kochi Refineries Limited Sale of crude oil - 1,566.33

f) GAIL (India) Limited Sale of Natural Gas & 98,289.24 159,103.76

other product

g) Brahmaputra Cracker and Polymer Ltd Sale of gas 553.87 903.14

h) New Mangalore Port Trust Port Services 0.82 2.99

i) Indian Strategic Petroleum Reserves Sale of petroleum 22,042.85 11,931.73

Limited (ISPRL) products

j) Indian Railways

k) North Eastern Electric Power Corporation Sale of petroleum 3,097.00 1077.89

products
Limited 922.61 1,111.08
Sale of Natural Gas

Purchase of product & services provided during year from:

a) Indian Oil Corporation Limited Purchase of Petrol Oil & 3,490.23 6,122.12
lubricant & services
636
b) Bharat Petroleum Corporation Ltd Purchase of Petrol Oil & 1,549.70 3,013.64
lubricant & services

c) GAIL (India) Limited Purchase of LNG 4,890.56 7,310.54

d) Bharat Heavy Electricals Limited Purchase of drilling rig 3,225.62 3,298.86

related items including
spares
e) Numaligarh Refinery Ltd Purchase of HSD 63.58 3.84
f) Bharat Pump and Compressor Ltd Purchase of spare parts 254.79 86.13
 ANNUAL REPORT
2020-21

Name of related party Nature of transaction For the For the

year ended year ended
March 31, March 31,
2021 2020

g) Indian Strategic Petroleum Reserves Deputation of MRPL 8.73 8.03

Limited (ISPRL) Employees

h) Indian Strategic Petroleum Reserves Purchase of Crude Oil

Limited (ISPRL) 988.45 28,766.70
On account of Pipeline,
i) Indian Oil Corporation Limited (IOCL) loading arm charges - 1.08

Services Received from:

a) United India Insurance Company Ltd Insurance premium 1,226.90 1,065.06

b) Balmer Lawrie & Co Ltd Travel expenses 400.40 1,285.71

Consolidated Financial Statements

c) Shipping corporation of India Hiring of vessels 7,525.58 7,742.56

d) Bharat Electronics Ltd Employee Access Control

356.61 236.72
System

e) Oriental Insurance Co. Ltd Insurance premium 400.89 378.24

f) New Mangalore Port Trust Port Services 1,125.06 1,326.85

g) Bridge & Roof Co (India) Ltd Job Work Service 925.14 1,304.88

h) Engineers India Ltd Technical Services 92.88 309.83

i) New Mangalore Port Trust Port Services - 213.62

j) Konkan Railway Corporation Limited Railway Siding 617.34 177.27

k) National Insurance Company Limited Insurance premium 0.23 0.43

l) New India Assurance Company Limited Insurance premium 179.70 117.18

m) Ministry of Corporate Affairs Services - 5.00

n) National Informatics Centre Services - 1.61

o) Stock Holding Corporation of India Ltd. Services - 5.00

637
p) Bharat Heavy Electricals Limited Services 24.06 67.80

q) Bharat Petroleum Corporation Ltd (BPCL) Programme Services 0.12 0.18

r) Oil India limited Pipe line service 241.16 241.08

Dividend Income received from:

a) Indian Oil Corporation Limited Dividend income 14,040.76 7,020.38

b) GAIL (India) Limited Dividend income 1,089.05 1,586.75

 THE UNSTOPPABLE
ENERGY SOLDIERS
51.3.3 Outstanding balances with Government Related Entities
(` in million)

Particulars As at March As at March

31, 2021 31, 2020

Amount receivable:

a) Indian Oil Corporation Limited Trade & other 24,364.62 12,770.07

receivable

b) Bharat Petroleum Corporation Ltd Trade & other 9,609.37 6,503.22

receivable

c) Chennai Petroleum Corporation Ltd Trade & other 6,200.67 2,585.29

receivable

d) Numaligarh Refinery Ltd Trade & other 1,878.92 1,188.63

receivable

e) GAIL (India) Limited Trade & other 8,038.28 10,176.99

receivable

f) United India Insurance Company Ltd Claim receivable (net) 3.07 -

g) Oil India Ltd. Trade & other 590.71 81.91

receivable

h) Brahmaputra Cracker and Polymer Ltd Trade & other 397.52 338.79
receivable

i) Kochi Refineries Limited Trade & other 9.61 9.61

receivable

j) Indian Strategic Petroleum Reserves Limited Trade,other receivable 1.42 7.17

(ISPRL) & advance given

k) New Mangalore Port Trust Trade & other 221.68 301.14

receivable

638 l) Coal India Ltd Trade & other 779.91 848.41

receivable

Trade & other

m) National Insurance Company receivable 0.01 0.25

n) National Informatics Centre Trade & other 0.47 1.61

receivable
o) Indian Railways
Trade & other
receivable 415.82 356.02
 ANNUAL REPORT
2020-21

Particulars As at March As at March

31, 2021 31, 2020

Amount payable:

a) Indian Oil Corporation Limited Trade & other payable 159.55 36.68

b) Bharat Petroleum Corporation Ltd Trade & other payable 13.04 265.28

c) GAIL (India) Limited Trade & other payable 299.21 310.68

d) Bharat Heavy Electricals Limited Trade & other payable 1,584.23 1,220.56

e) Balmer Lawrie & Co Ltd Trade & other payable 60.88 24.41

f) Shipping corporation of India Trade & other payable 1,446.42 436.17

Consolidated Financial Statements

g) Numaligarh Refinery Ltd Trade & other payable - 1.50

h) Bharat Electronics Ltd Trade & other payable 420.87 226.30

i) Oil India Limited Trade & other payable 47.56 24.67

j) Bharat Pumps and compressors Ltd Trade & other payable 18.52 10.77

k) Bridge & Roof Co (India) Ltd Trade & other payable 54.12 135.95

l) Engineers India Ltd Trade & other payable 158.16 146.29

m) Konkan Railway Corporation Limited Trade & other payable 16.87 16.85

n) Indian Strategic Petroleum Reserves Limited Trade & other payable - 6,462.22
(ISPRL)

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

52 Financial instruments Disclosure 639

52.1 Capital Management
The Group’s objective when managing capital is to:
 Safeguard its ability to continue as going concern so that the Group is able to provide maximum return to
stakeholders and benefits for other stakeholders; and
 Maintain an optimal capital structure to reduce the cost of capital.
The Group maintains its financial framework to support the pursuit of value growth for shareholders, while
ensuring a secure financial base. In order to maintain or adjust the capital structure, the Group may adjust
the amount of dividends to shareholders, return capital to shareholders, issue new shares or sell assets to
reduce debt.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The capital structure of the Group consists of net debt (borrowings as detailed in Note No. 29 and 31 offset
by cash and bank balances) and total equity (refer Note No. 26, 27 and 28).
The Group’s financial management committees review the capital structure on a regular basis. As part
of this review, the committee considers the cost of capital, risks associated with each class of capital
requirements and maintenance of adequate liquidity.
52.1.1 Gearing Ratio

The gearing ratio is worked out as follows:

(` in million)
As at As at
Particulars
March 31, 2021 March 31, 2020*
i) Debt 1,190,611.50 1,163,024.33
ii) Total cash and bank balances 71,922.71 96,402.36
Less : cash and bank balances required for working capital 520.62 279.95
Net cash and bank balances 71,402.09 96,122.41
iii) Net Debt 1,119,209.41 1,066,901.92
iv) Total equity 2,425,967.88 2,235,103.42
v) Net Debt to equity ratio 46.13% 47.73%

* Restated, refer Note No.64

52.2 Categories of financial instruments

(` in million)
As at As at
Particulars
March 31, 2021 March 31, 2020
Financial assets
Measured at fair value through profit or loss (FVTPL)
(a) Investment in mutual funds 32,577.33 30,228.72
(b) Compulsory Convertible Preference Share 372.06 307.48
(c) Derivative assets 117.16 342.16
(d) Debt Instrument 54,175.73 53,448.62
(e) Investments in equity instruments 0.59 0.64
Measured at amortised cost
640 (a) Investment in GoI Special Bonds 1,975.08 1,975.08
(b) Trade and other receivables 185,787.90 115,475.04
(c) Cash and cash equivalents 40,193.69 47,805.62
(d) Other bank balances 31,729.02 48,596.74
(e) Deposit under Site Restoration Fund 235,114.70 222,836.06
(f) Loans 35,739.20 43,966.98
(g) Other financial assets 103,811.85 156,734.34
 ANNUAL REPORT
2020-21

As at As at
Particulars
March 31, 2021 March 31, 2020
Measured at FVTOCI
(a) Investments in equity instruments* 155,654.85 128,069.48
Financial liabilities
Measured at fair value through profit or loss (FVTPL)
(a) Derivative Liability 923.72 2,727.50
Measured at amortised cost
(a) Short Term Borrowings 306,576.10 315,056.34
(b) Long Term Borrowings 791,620.63 729,315.77
(c) Trade payables 274,491.45 229,611.26
(d) Other financial liabilities

Consolidated Financial Statements

i. Compulsory Convertible Debentures 74,319.13 74,769.96
ii Financial guarantee contracts 12.23 8.36
iii.Others 448,204.92 472,559.83
(e) Lease Liabilities 141,257.71 131,700.83

* Investments in equity instruments include strategic investment made during the year in Indian Gas
Exchange Limited (IGX) amounting to `36.94 million measured at FVTOCI, refer Note No. 14.2.4.

52.3 Financial risk management objectives

While ensuring liquidity is sufficient to meet Group operational requirements, the Group’s financial
management committee also monitors and manages key financial risks relating to the operations of the
Group by analysing exposures by degree and magnitude of risks. These risks include credit risk, liquidity
risk and market risk (including currency risk and price risk).
In respect of Company, during the year, the liquidity position of the Company was comfortable. The lines
of Credit/short term loan available with various banks for meeting the short term working capital/ deficit
requirements were sufficient for meeting the fund requirements. The Company has also an overall limit of
`100,000 million for raising funds through Commercial Paper. The domestic debt capital market was tapped
by the Parent company during the year by issuance of Non-Convertible Debentures (NCD) on private
placement basis. Four series of NCDs aggregating to `41,400 million were issued during the year for
meeting the fund requirement of the Company. Cash flow/ liquidity position is reviewed on continues basis.
In case of subsidiary OVL, the Company’s management seeks to minimise the effects of these risks by 641
using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed
by the company’s policies approved by the Board of Directors, which provide written principles on foreign
exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial
instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed
by the internal auditors on a continuous basis. The Group does not enter into or trade financial instruments,
including derivative financial instruments, for speculative purposes.
In case of subsidiary, HPCL, the Corporation has established an Enterprise Risk Management (ERM) framework
under the Corporation’s Risk Management Charter and Policy 2007, which is embedded at the forefront of
business strategies and focuses on the stronger, deeper and trust-based relationship with the stakeholders.
It provides necessary support to the business to steer through the continuously evolving risk terrain through
dynamic risk management approach that embraces disruption and enhances resiliency and trust.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The outbreak of the Coronavirus Disease (COVID-19) has stricken communities across the globe. The virus’
rapid geographical spread has caught the world off-guard, with major implications for personal health,
business continuity and the world economic order. The Corporation had immediately reviewed the Risks
arising out of the COVID-19 and suitably included the new risks as well as amended the existing Risks for
suitably mitigating same.
The Risk Management Steering Committee (RMSC) receives regular insights on risk exposures faced by
the Corporation, thereby enabling it to provide inputs on prompt actions to be taken as well as monitor the
actions taken. The Board is also updated regularly on the risk assessment and mitigation procedures.
Technology has been enabled to support the Enterprise Risk Management processes with a focus on
optimizing risk exposures and automating risk reporting across the organization.

52.4 Credit risk management

Credit risk arises from cash and cash equivalents, investments carried at amortized cost and deposits
with banks as well as customers including receivables. Credit risk management considers available
reasonable and supportive forward-looking information including indicators like external credit rating (as
far as available), macro-economic information (such as regulatory changes, government directives, market
interest rate).
Credit exposure is managed by counterparty limits for investment of surplus funds which is reviewed by the
Management. Investments in liquid plan/schemes are with public sector Asset Management Companies
having highest rating. For banks, only high rated banks are considered for placement of deposits.
Bank balances are held with reputed and creditworthy banking institutions.

In respect of Company,
Major customers, being public sector oil marketing companies (OMCs) and gas companies having highest
credit ratings, carry negligible credit risk. Concentration of credit risk to any other counterparty did not
exceed 5.67% (previous year 5.02%) of total monetary assets at any time during the year.
The Company is exposed to default risk in relation to financial guarantees given to banks / vendors on
behalf of subsidiaries / joint venture companies for the estimated amount that would be payable to the third
party for assuming the obligation. The Company’s maximum exposure in this regard on as at March 31,
2021 is `411,769.54 million (as at March 31, 2020 is `450,639.15 million).

In respect of subsidiary company MRPL,

Major customers, being public sector undertakings oil marketing companies having highest credit ratings,
carry negligible credit risk. Concentration of credit risk to any other counterparty did not exceed 10% of total
642 monetary assets at any time during the year.
Subsidiary Company OMPL makes sales to its customer which are secured by letter of credit other than
sales made to Holding Company and reputed international customers.

In respect of subsidiary company OVL,

Major customers, of the Company are reputed Oil Marketing Companies (OMCs) / International Oil
Companies (IOCs) / National Oil Companies (NOCs) which have highest credit ratings, carrying negligible
credit risk.
 ANNUAL REPORT
2020-21
In respect of subsidiary company HPCL,
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument
fails to meet their contractual obligations. The risk arises principally from the Group’s Receivables
from Customers and so also from Investment Securities. The risk is managed through credit approval,
establishing credit limits and continuous monitoring of the creditworthiness of Customers to whom the
Group extends credit terms in the normal course of business.
Refer Note No.16.3 regarding loans given to consumers under Pradhan Mantri Ujjwala Yojna (PMUY).

Trade receivables:
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The company’s uses an allowance matrix to measure the expected credit losses of trade receivables (which
are considered good). The following table provides information about the exposure to credit risk and loss
allowance (including expected credit loss provision) for trade receivables:-
(` in million)

Consolidated Financial Statements

31.03.2021 31.03.2020
Gross Weighted Loss Gross Weighted Loss
carrying average allowance carrying average allowance
amount loss rate amount loss rate
Past due 0-90 days 63,503.40 0.05% 32.90 36,113.20 0.03% 12.50
Past due 91–360 3,522.10 1.73% 61.00 2,920.30 1.17% 34.20
days
More than 360 days 4,875.80 63.73% 3,107.50 2,107.60 83.15% 1,752.50
71,901.30 3,201.40 41,141.10 1,799.20

The movement in loss allowance on trade receivables is as follows:

(` in million)
Balance as at 01.04.2019 1,671.41
Add : Loss allowance recognised 129.90
Less : Amounts written off 2.10
Balance as at 31.03.2020 1,799.21
643
Add : Loss allowance recognised 1,405.90
Less : Amounts written off 3.70
Balance as at 31.03.2021 3,201.40

The amounts written off relates to customers who have defaulted payments and are not expected to pay
their outstanding balances, mainly due to economic circumstances.
Cash and cash equivalents
The Group held cash and cash equivalents of `4,803.80 million at March 31, 2021 (March 31, 2020:
`2,047.60 million).
 THE UNSTOPPABLE
ENERGY SOLDIERS
The cash and cash equivalents (other than cash on hand) are held with Scheduled banks. The Group
invests its surplus funds for short duration in fixed deposit with banks, Govt of India T-bills and liquid
Schemes of Mutual Funds, all of which carry no mark to market risks as the Group is exposed only to low
credit risk.
Derivatives:
The forex and interest rate derivatives were entered into with banks having an investment grade rating
and exposure to counter-parties are closely monitored and kept within the approved limits. Commodity
derivatives are entered with reputed Counterparties in the OTC (Over-the-Counter) Market.
Investment in debt securities:
Investment in debt securities are in government securities or bonds which do not carry any credit risk, being
sovereign in nature.

52.5 Liquidity risk management

The Group manages liquidity risk by maintaining sufficient cash and cash equivalents including bank
deposits and availability of funding through an adequate amount of committed credit facilities to meet
the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash
equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting
cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles
of financial assets & liabilities and monitoring balance sheet liquidity ratios.
The Group has an adequate fund and non-fund based lines from various banks. The Group has sufficient
borrowing limits in place duly, approved by its Shareholders and Board. Domestic and international
credit rating from reputed credit rating agencies enables access of funds both from domestic as well
as international market. Group’s diversified source of funds and strong operating cash flow enables it to
maintain requisite capital structure discipline. Group diversifies its capital structure with a mix of instruments
and financing products across varying maturities and currencies. The financing products include syndicated
loans, foreign currency bonds, TREPS loan, commercial paper, non-convertible debentures, buyer’s credit
loan, clean loan etc. Group taps domestic as well as foreign debt markets from time to time to ensure
appropriate funding mix and diversification of geographies.
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial
liabilities with agreed repayment periods. The information included in the tables have been drawn up based
on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be
required to pay. The tables include both interest and principal cash flows. The contractual maturity is based
on the earliest date on which the Group may be required to pay.

644 (` in million)
Particulars Weighted Less than 1 month -1 1 year – 3 More than Total
average 1 month year years 3 years
effective
interest rate
As at March 31,
2021
Measured at
amortised cost
Fixed Rate
Borrowing:
 ANNUAL REPORT
2020-21

Particulars Weighted Less than 1 month -1 1 year – 3 More than Total

average 1 month year years 3 years
effective
interest rate
Short Term - 86,951.43 - - 86,951.43
Borrowing
Long Term - - 26,400.00 36,875.21 63,275.21
Borrowing
Borrowings Long term - 18,245.14 52,283.06 58,411.37 99,581.86 228,521.43
3.94%

Short Term -
3.18%

Subsidiary

Consolidated Financial Statements

OMPL

Long term -
4.29%

Short Term -
5.82%
Borrowings and - 167,596.00 125,961.2 158,351.2 451,908.40
interest thereon
US$ 750 millions 4.72% - - - 54,684.42 54,684.42
unsecured non-
convertible Reg S
Bonds
US$ 500 millions 3.76% - - 36,707.13 - 36,707.13
unsecured non-
convertible Reg S
Bonds
EUR 525 millions 2.84% - - 44,968.38 - 44,968.38
unsecured Euro
Bonds
645
US$ 600 Million 3.802% - - - 43,986.25 43,986.25
Foreign Currency
Bonds
US$ 400 Million 2.923% - 29,384.99 - - 29,384.99
Foreign Currency
Bonds
Variable Rate
Borrowing:
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars Weighted Less than 1 month -1 1 year – 3 More than Total

average 1 month year years 3 years
effective
interest rate
Term loan from 3M$Libor + 95 - - - 72,681.61 72,681.61
bank (US$ 1,000 bps
million Facility)
Term Loan from 3M$Libor + 76 - - - 36,487.79 36,487.79
Bank (US$ 500 bps
Million Facility)
Term Loan from 3M$Libor + 95 - - 50,928.57 - 50,928.57
Bank (US$ 1,775 bps
Million Facility)
Term Loan from 3MJPYLibor + - - 16,717.91 8,358.95 25,076.86
Bank (JPY 38 Billion 47 bps
Facility)
Derivative financial
liabilities
Commodity - 33.60 - - 33.60
contracts (net
settled)
Others financials
liabilities:
Lease Liabilities # - - - - 141,257.71
Trade Payable 61,610.10 2,12,881.35 - - 2,74,491.45
Payable to 34,797.65 - - - 34,797.65
operators
Bonus payable - 1,004.36 1,937.48 937.82 3,879.66
for extension of
Production sharing
agreement
646
Deposit from 4,162.11 375.93 669.08 3.64 5,210.76
suppliers/vendors
Interest accrued - 3,157.09 839.42 - 3,996.51
Compulsory - 16,203.56 58,115.57 - 74,319.13
Convertible
Debentures
Others 103,197.27 50,640.80 65.80 161,780.44 315,684.31
Total 222,012.27 620,512.17 421,721.91 673,729.20 2,079,233.26

# For Maturity Analysis of Lease Liabilities please refer Note ttNo. 48.2 and refer Note No. 29 Borrowings.
 ANNUAL REPORT
2020-21
(` in million)
Particulars Weighted Less than 1 month -1 1 year – 3 More than Total
average 1 month year years 3 years
effective
interest rate
As at March 31,
2020
Measured at
amortised cost
Fixed Rate
Borrowing:
Short Term Borrowing - 1,16,887.88 - - 1,16,887.88
Long Term Borrowing - - - 22,450.97 22,450.97
Borrowings* Long term - 2,470.32 32,792.76 46,302.62 86,953.57 1,68,519.27

Consolidated Financial Statements

4.80%

Short Term -
7.74%

Subsidiary
OMPL

Long term -
4.61%

Short Term -
8.22%
Borrowings and - 219,111.50 65,956.00 184,415.90 469,483.40
interest thereon
US$ 750 millions 4.72% - - - 56,165.20 56,165.20
unsecured non-
convertible Reg S
Bonds
US$ 500 millions 3.76% - - - 37,701.10 37,701.10
unsecured non-
convertible Reg S
Bonds 647
EUR 525 millions 2.84% - - 43,156.87 - 43,156.87
unsecured Euro
Bonds
US$ 600 Million 3.802% - - - 45,159.11 45,159.11
Foreign Currency
Bonds
US$ 400 Million 2.923% - - 30,167.37 - 30,167.37
Foreign Currency
Bonds
 THE UNSTOPPABLE
ENERGY SOLDIERS

Particulars Weighted Less than 1 month -1 1 year – 3 More than Total

average 1 month year years 3 years
effective
interest rate
Variable Rate
Borrowing:
Term loan from bank 3M$Libor + - - - 74,649.72 74,649.72
(US$ 1,000 million 95 bps
Facility)
Term Loan from Bank 3M$Libor + - - - 37,475.82 37,475.82
(US$ 500 Million 76 bps
Facility)
Term Loan from Bank 3M$Libor + - 57,757.71 - - 57,757.71
(US$ 1,775 Million 95 bps
Facility)
Term Loan from Bank 3M$Libor + - - 14,755.24 - 14,755.24
(US$ 500 Million 76 bps
Facility)
Term Loan from 3MJPYLibor - - 8,823.60 17,524.56 26,348.16
Bank (JPY 38 Billion + 47 bps
Facility)
Derivative financial - (43.50) - - (43.50)
liabilities

Interest rate swaps

Commodity contracts - 604.40 - - 604.40
(net settled)
Others financials
liabilities:
Lease Liabilities # - - - - 1,31,700.83
Trade Payable 109,796.19 120,086.71 - - 2,29,882.90
Payable to operators 6,380.64 - - - 6,380.64
Bonus payable - 1,031.56 - 3,898.30 4,929.86
for extension of
648 Production sharing
agreement
Deposit from 2,715.58 3,297.11 586.96 2.81 6,602.46
suppliers/vendors
Compulsory - 74,769.96 - - 74,769.96
Convertible
Debenture*
Interest accrued - 3,598.45 499.65 - 4,098.10
Others * 152,344.14 51,637.03 485.88 159,586.15 364,053.20
Total 273,706.88 681,531.57 210,734.19 725,983.21 2,023,656.68

* Restated figures
# For Maturity Analysis of Lease Liabilities please refer Note No. 48.2 and refer Note No. 29 Borrowings.
 ANNUAL REPORT
2020-21
The Group expects to meet its other obligations from operating cash flows and proceeds of maturing financial
assets. The Group has access to committed credit facilities as described below:
In respect of the Company,
The Company along with its wholly owned subsidiary ONGC Videsh Limited, had set up Euro Medium Term
Note (EMTN) Program for US$ 2 billion on August 27, 2019 which was listed on Singapore Stock Exchange and
subsequently on India International Exchange (India INX) and will mature in December 05, 2029. The EMTN
program was updated by the Company along with its wholly owned subsidiaries ONGC Videsh Limited and
ONGC Videsh Vankorneft Ltd. on April 19, 2021 for drawdown in near future.
The domestic debt capital market was tapped by the Company during the year by issuance of Non-Convertible
Debentures (NCD) on private placement basis. Four series of NCDs aggregating to `41,400 million were issued
during the year for meeting the fund requirement of the Company. Details of NCDs outstanding as on March 31,
2021 are given under Note no 29.1.5.
Liabilities for Compulsory Convertible Debentures (CCDs) represents maturity profile against CCDs
issued by Joint Venture Company ONGC Petro additions Limited (OPaL)amounting to `77,780.00 million refer

Consolidated Financial Statements

Note No. 64.
The Company has access to committed credit facilities and the details of facilities used are given below. The
Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial
assets.
Unsecured bank overdraft facility, reviewed annually and payable at call:
(` in million)
Particulars As at March 31, 2021 As at March 31, 2020
Amount used - -
Amount unused 2,663 2,900

# At the year-end, the cash credit limit was `11,023 million (Previous year `13,000 million) considering business
requirement of the Company. The cash credit limit of `8,360 million (Previous year `10,100 million) was utilized
as working capital loan.
Besides the above, the Company had arrangement for unutilized short term loan facilities of `15,833 million as
on March 31, 2021 with other banks.
The Company also had an unutilized limit of `82,500 million (Previous year `90,000 million) for raising funds
through Commercial Paper.

In respect of subsidiary company MRPL,

649
The Group has access to financing facilities as described below, of which `5,000 million were unused at the end
of the reporting period (As at March 31, 2020 `3,838.02 million). The Group expects to meet its other obligations
from operating cash flows and proceeds of maturing financial assets.

Particulars As at March 31, 2021 As at March 31, 2020

Secured bank overdraft facility, payable at call: 5,000.00 10,000.00
amount used - 6,161.98
amount unused 5,000.00 3,838.02
5,000.00 10,000.00
 THE UNSTOPPABLE
ENERGY SOLDIERS
In respect of subsidiary company OVL,
The amounts included in contractual maturity for its non-derivative financial liabilities table above for variable
interest rate instruments for both non-derivative financial assets and liabilities is subject to change if changes
in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
The following table details the Company’s liquidity analysis for its derivative financial instruments. The table has
been drawn up based on the undiscounted contractual net cash inflows and outflows on derivative instruments
that settle on a gross basis:
(` in million)
Particulars 3 months 6 More
Less than Carrying
–6 months Than 1 Total
3 months amount
months – 1 year year
As at March 31, 2021
Gross settled:
Derivative liabilities
- foreign exchange forward - - - - - -
contracts
Total

Gross settled:
Derivative assets
- foreign exchange forward - - 33.76 31.41 65.17 65.17
contracts
Total 33.76 31.41 65.17 65.17
As at March 31, 2020
Gross settled:
Derivative liabilities
- foreign exchange forward - - - 1,932.44 1,932.44 1,932.44
contracts
Total 1,932.44 1,932.44 1,932.44

Gross settled:
650 Derivative assets
- foreign exchange forward - - - 137.34 44.44 181.78
contracts
Total 137.34 44.44 181.78
 ANNUAL REPORT
2020-21
In respect of subsidiary company HPCL, the details of derivative financial liabilities are as follows:
(` in million)
Contractual cash flows
31.03.2021 31.03.2020
Derivative financial liabilities more
more than Upto 1 1-3
Upto 1 year 1-3 years than 3
3 years year years
years
Interest rate swaps - - - (43.50) - -
Commodity contracts (net
settled) 33.60 - - 604.40 - -
Forward exchange contracts
(Gross settled) - - - - - -
- Inflows - - - - - -

Consolidated Financial Statements

- Outflows - - - - - -

Total 33.60 - - 560.90 - -

52.6 Market Risk

In respect of group, market risk is the risk or uncertainty arising from possible market price movements and
their impact on the future performance of a business. The major components of market risk are commodity
price risk, foreign currency risk and interest rate risk.
The primary commodity price risks that the Group is exposed to international crude oil and gas prices that
could adversely affect the value of the Group’s financial assets or expected future cash flows. Substantial
or extended decline in international prices of crude oil and natural gas may have an adverse effect on the
Group’s reported results.
The group is constantly carrying out macro level analysis and keeping a vigilant eye on global reports &
analysis being done by global analyst & firms. With spread of pandemic globally and later due to lockdown,
the supply chain have witnessed minor disruption, however it is expected that India being a net importer
of oil & gas, the Company’s customer base would not be adversely affected for a long time save for
some temporary blips. The Company feel that the impact of COVID on crude price may be a temporary
phenomenon as the price is expected to bounce back, though range bound in medium to long term.
Subsidiary Company OVL enters into a variety of derivative financial instruments to manage its exposure to
foreign currency risk and interest rate risk, including:
651
(a) Interest rate swaps to mitigate the variable of rising interest rate.

(b) Derivative contracts to hedge its exposure in respect of Euro bond and for JPY Loan.

52.7 Foreign currency risk management

In case of company, Sale price of crude oil is denominated in United States dollar (US$) though billed
and received in Indian Rupees (`). The Company is, therefore, exposed to foreign currency risk principally
out of ` appreciating against US$. Foreign currency risks on account of receipts / revenue and payments
/ expenses are managed by netting off naturally-occurring opposite exposures through export earnings,
wherever possible and carry unhedged exposures for the residual considering the natural hedge available
to it from domestic sales.
 THE UNSTOPPABLE
ENERGY SOLDIERS
The Company undertakes transactions denominated in different foreign currencies and consequently
exposed to exchange rate fluctuations. Exchange rate exposures are managed within approved policy
parameters.

The Company has approved the Foreign exchange and Interest Risk Management Policy [RMP] with
objective to ensure that foreign exchange exposures on both revenue and balance sheet accounts are
properly computed, recorded and monitored, risks are limited to tolerable levels and an efficient process is
created for reporting of risk and evaluation of risk management operations.

The RMP primary objective is to risk limitation/reduction and to constitute a committee with appropriate
authority and structured responsibility of all activities of Company with regard to management of foreign
exchange risk.

The Company shall constitute Forex Risk Management Committee (FRMC) to enable risk to be identified,
assessed, monitored and managed / mitigated appropriately within the legal and regulatory framework.
FRMC of the Company has been entrusted with the responsibility to assist the Board through Audit Committee
in overseeing and approving the company’s Foreign Exchange and Interest risk Management framework.

The Company has also approved Hedging policy so that exposures are identified and measured across
Company, accordingly appropriate hedging can be done on net exposure basis. The company has adopted
structured risk management policy to hedge foreign exchange risk within acceptable risk limit. Hedging
instrument includes plain vanilla forward (including plain vanilla swaps) and option contract. FRMC shall
decide and take decision regarding selection of hedging instrument based on market volatility, market
condition, legal framework, global events, macro-economic situation etc. All the decision and strategies
shall be in line and within the approved Foreign exchange and Interest Risk Management Policy. During the
year no hedging was resorted to, due to negative net exposure for the period.

Similarly, subsidiary MRPL, undertakes transactions denominated in different foreign currencies, primarily for
purchase of crude oil and export sales and has borrowings denominated in foreign currency; consequently,
exposed to exchange rate fluctuations.

In respect of subsidiary company OVL, the functional currency is US$. The company undertakes transactions
denominated in different foreign currencies and is consequently exposed to exchange rate fluctuations due
to overseas operations.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities
at the end of the reporting period are as follows:

(` in million)
Liabilities as at Assets as at
652
Particulars March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
US$ 4,84,757.68 596,863.02 17,792.67 10,412.80
GBP 3,185.83 1,464.65 - -
EURO 46,233.54 44,271.81 - -
JPY 25,512.62 26,385.85 - -
Others 4,644.03 74.73 - 0.76
 ANNUAL REPORT
2020-21
52.7.1 Foreign currency sensitivity analysis

The Group is principally exposed to foreign currency risk against currency other than functional currency.
Sensitivity of profit or loss arises mainly against EURO, JPY and ` borrowings in case of OVL and from
US$ denominated receivables and payables in other cases.

In respect of the Company,

As per management’s assessment of reasonable possible changes in the exchange rate of +/- 5%
between US$-` currency pair, sensitivity of profit or loss only on outstanding foreign currency denominated
monetary items at the period end is presented below:
(` in million)
US$ sensitivity at year end Year ended Year ended
March 31, 2021 March 31, 2020
Assets:
Weakening of ` by 5% 440.18 280.28
Strengthening of ` by 5% (440.18) (280.28)

Consolidated Financial Statements

Liabilites:
Weakening of ` by 5% (6,437.08) (9,919.97)
Strengthening of ` by 5% 6,437.08 9,919.97

In respect of subsidiary company MRPL,

(` in million)
US$ sensitivity at year end Year ended Year ended
March 31, 2021 March 31, 2020
Receivables:
Weakening of ` by 5% 354.30 145.20
Strengthening of ` by 5% (354.30) (145.20)
Payable
Weakening of ` by 5% (7,451.81) (6,781.67)
Strengthening of ` by 5% 7,451.81 6,781.67
In respect of subsidiary company OVL,
The Company is exposed to foreign currency risk against currency other than functional currency.
Sensitivity of profit or loss arises mainly against EURO, JPY and ` borrowing.
As per management’s assessment of reasonable possible changes in the exchange rate of +/- 5%
between EURO-US$, JPY-US$ and US$-` currency pair, sensitivity of profit or loss only on outstanding 653
foreign currency denominated monetary items at the year end is presented below:
(` in million)
US$ sensitivity at year end For the year ended For the year ended
March 31, 2021 March 31, 2020
Borrowing
Euro-US$ appreciation by 5% 2,321.09 2,240.90
Euro-US$ depreciation by 5% (2,321.09) (2,240.90)
JPY-US$ appreciation by 5% 1,266.34 1,329.37
JPY-US$ depreciation by 5% (1,266.34) (1,329.37)
US$-` appreciation by 5% - -
US$-` depreciation by 5% - -
 THE UNSTOPPABLE
ENERGY SOLDIERS
In case of Company,
Sensitivity of Revenue from operation (net of levies) to change in +/- Re. 1 in exchange rate between
`-US$ currency pair is presented as under:
(` in million)
Sensitivity of Revenue from operation 2020-2021 2019-2020
Impact on Revenue from operation (net of levies) for (+/-)7,040.98 (+/-)10,418.66
exchange rate
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk
because the exposure at the end of the reporting period does not reflect the exposure during the year.
In case of subsidiary company HPCL,
The table below shows sensitivity of open forex exposure to US$ / ` movement. We have considered 1%
(+/-) change in US$ / ` movement, increase indicates appreciation in US$ / ` whereas decrease indicates
depreciation in US$ / `. The indicative 1% movement is not directional and does not reflect management’s
forecast on currency movement.
(` in million)
Effect in ` Impact on profit or loss due to 1 % increase / decrease in
currency
Increase Decrease Increase Decrease
March 31, 2021 March 31, 2020
1% movement 1% 1%
US$ (1944.10) 1944.10 (2,484.80) 2,484.80

52.7.2 Forward foreign exchange contracts

The Company has not entered into any forward foreign exchange contracts during the reporting period.
The subsidiary company OVL generally enters into forward exchange contracts to cover specific foreign
currency payments and receipts to reduce foreign exchange fluctuation risk. In current year, the Company
has entered certain forward contracts to cover exposure towards EURO bond.
In case of subsidiary company HPCL,
The Company is exposed to currency risk mainly on account of its borrowings and import payables
in foreign currency. Our exposures are mainly denominated in U.S. dollars. The Company has used
generic derivative contracts to mitigate the risk of changes in foreign currency exchange rates in line with
654 Company’s forex risk management policy. The Company has a Forex Risk Management Cell (FRMC)
which actively review the forex and interest rate exposures. The Company does not use derivative financial
instruments for trading or speculative purposes.

52.8 Interest rate risk management

The Group has availed borrowings at fixed and floating interest rates, hence is exposed to interest rate
risk.
 ANNUAL REPORT
2020-21
52.8.1 Interest rate sensitivity analysis
In respect of company,
The Company is exposed to interest rate risk because the Company has borrowed funds benchmarked to
overnight MCLR, Treasury Bills, debt (capital) market, Mibor, RBI Repo and US$ LIBOR. The Company’s
exposure to interest rates on financial liabilities are detailed in note 29.1.
The Company invests the surplus fund generated from operations in term deposits with banks and mutual
funds. Bank deposits are made for a period of upto 12 months carry interest rate as per prevailing market
interest rate. Considering these bank deposits are short term in nature, there is no significant interest rate
risk. Average interest earned on term deposit and a mutual fund for the year ended March 31, 2021 was
4.09% p.a. (Previous year 4.85% p.a.).

In respect of subsidiary company MRPL,

The sensitivity analyses below have been determined based on the exposure to interest rates at the end
of the reporting period. For floating rate borrowings, the analysis is prepared assuming the amount of the

Consolidated Financial Statements

borrowings outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis
point increase or decrease is used for disclosing the sensitivity analysis.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the
company’s profit for the year ended March 31, 2021 would decrease/increase by `728.98 million (for
the year ended March 31, 2020 : decrease/increase by `669.11 million). This is mainly attributable to the
company’s exposure to interest rates on its variable rate borrowings (considered on closing balance of
borrowings as at year end).

In respect of subsidiary company OVL,

The sensitivity analyses below have been determined based on the exposure to interest rates for both
derivatives and non-derivative instruments at the end of the reporting year. For floating rate liabilities, the
analysis is prepared assuming the amount of the liability outstanding at the end of the reporting year was
outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate
risk internally to key management personnel and represents management’s assessment of the reasona-
bly possible change in interest rates.

655
 656
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the analysis is as under:

ENERGY SOLDIERS
THE UNSTOPPABLE
(` in million)

Particulars For the year ended March 31, 2021 For the year ended March 31, 2020
US$ US$ US$ 700 JPY 38 US$ 500 US$ US$ 775 US$ 500 JPY 38 US$ 500 US$
775 500 million billion million 1000 million million billion million 1000
million million (New) million (New) million

Term Term Term Term Term Term Term Term Term Term Term
Loan Loan Loan Loan Loan Loan Loan Loan Loan Loan Loan
(a) Impact on
profit or loss
for the year - - 259.92 133.15 185.66 354.58 274.80 69.75 123.99 177.29 354.58
for decrease
in interest
rate
(b) Impact on - - (259.92) (133.15) (185.66) (354.58) (274.80) (69.75) (123.99) (177.29) (354.58)
profit or loss
for the year
for increase
in interest
rate
Interest rate swap contracts
The subsidiary company OVL is engaged in E&P business outside India. Its revenues of crude oil and natural gas are principally denominated
in US$. Further, price benchmarks wherever applicable are also principally in US$. The Company has therefore swapped the coupon and
the principal amount of 8.54% Unsecured Redeemable Debenture (face value of `3,700.00 Million) into US$. These contracts matured
during the year 2019-20.

In respect of subsidiary company HPCL,

Company has long-term foreign currency syndicated loans with floating rate, which expose the company to cash flow interest rate risk.
The borrowings at floating rate were denominated in US$. The Company manages its cash flow interest rate risk by using floating-to-fixed
interest rate swaps. Under these swaps, the Company agrees with other parties to exchange, at specified intervals (i.e. quarterly), the dif-
ference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional principal amounts.
Company monitors the interest rate movement and manages the interest rate risk based on the Company’s Forex Risk Management Policy.
The Company also has a Forex Risk Management Cell (FRMC) which actively review the forex and interest rate exposures. The Company
does not uses derivative financial instruments for trading or speculative purposes.
 ANNUAL REPORT
2020-21
‘The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will
fluctuate because of a change in market interest rates.
Following is the derivative financial instruments to hedge the interest rate risk as of dates:
(` in million)
Category Instrument Currency Cross 31.03.2021 31.03.2020
Currency
Hedges of floating rate foreign Interest rate US$ ` - 18,916.30
currency loans - $ 250 million swaps
(31.03.2020: $ 250 million)

Interest rate risk exposure

Company’s interest rate risk arises mainly from borrowings. The interest rate profile of the Company’s
interest-bearing financial instruments as reported to the management of the Company is as follows.

Consolidated Financial Statements

(` in million)
Carrying amount
31.03.2021 31.03.2020
Fixed-rate instruments
Financial assets 56,268.10 55,140.80
Financial liabilities 299,841.20 242,169.40
Variable-rate instruments
Financial assets 18,702.60 26,523.30
Financial liabilities 106,997.20 1,72,911.00

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 25 basis points in interest rates at Reporting Date would have impacted
profit or loss [increased / (decreased)] by the amounts shown below. The indicative 25 basis point (0.25%)
movement is directional and does not reflect management forecast on interest rate movement. This analysis
assumes that all other variables, in particular, foreign currency exchange rate remaining constant.
(` in million)
Profit or loss
25 bp increase 25 bp decrease 25 bp increase 25 bp decrease
657
31.03.2021 31.03.2020
Floating rate borrowings (178.80) 178.80 (294.70) 294.70
Interest rate swaps (notional
principal amount) - - 41.40 (41.40)
Cash flow sensitivity (net) (178.80) 178.80 (253.30) 253.30

52.9 Commodity Risk

In respect of subsidiary company HPCL,
The Company’s Profitability is exposed to the risk of fluctuation in prices of Crude Oil and Petroleum
products in international markets. Company monitors and reduces the impact of the volatility in International
 THE UNSTOPPABLE
ENERGY SOLDIERS
Oil prices based on approved Oil Price Risk Management Policy by entering into derivative contracts in the
OTC market.
The Company also has Oil Price Risk Management Committee (OPRMC) which actively reviews and
monitors risk management principles, policies and risk management activities.
Category-wise quantitative break-up of Commodity derivative contracts entered into by the Company and
Outstanding as at balance sheet date is given below:

Particulars Quantity (in Mn Barrels)

31.03.2021 31.03.2020
Crude/Product Swaps 1.11 4.23

The sensitivity to a reasonable possible change of 10% in the price of crude/product swaps on the
outstanding commodity hedging positions as on Balance sheet date would increase/decrease the profit or
loss by amounts shown below. This 10% movement is directional and does not reflect any forecast of price
movement.

Effect on Profit before Tax (` in million)

Particulars
10% 10% 10% 10%
Increase Decrease Increase Decrease
31.03.2021 31.03.2020
Crude/Product Swaps (140.1) 115.6 28.00 (28.00)

Derivatives & Hedging

The company enters into derivative contracts for hedging purpose, to mitigate the commodity price risk, on
Highly probable forecast transactions as detailed above. Effective 01 January 2020, the Corporation has
applied Hedge Accounting on commodity derivative transactions entered subsequent to 01 January 2020
as per Ind AS 109 (Financial Instruments). Consequent to this a Mark to Market debit amounting to `11.40
million (Previous year 241.10 million) has been accounted in Other Comprehensive Income which will be
recycled to Statement of Profit and Loss in subsequent period on settlement of respective contracts.
All these hedges are accounted for as Cash Flow Hedges.

658 Hedge Effectiveness:

The company has established a hedge ratio of 1:1 for the hedging relationship as the underlying risk
of the commodity forward contracts are identical to the hedged risk component. Hedge item and the
hedging instruments have economic relationship as the terms of the commodity forward contracts match
with the terms of hedge items. Considering the economic relationship and characteristics of the hedging
instrument being aligned to the hedged item, the fair value changes in the hedging instrument reasonably
approximates the fair value changes in the hedged Item (in absolute amounts).

Source of Hedge Effectiveness:

The company has identified the following sources of hedge ineffectiveness which are not expected to be
material:
 ANNUAL REPORT
2020-21
a. Counterparty Credit Risk impacting the fair value of the hedge instrument and hedge item.
b. Difference in the timing of the cash flows of the hedged items and the hedge instruments
c. Different indexes used to hedge risk of the hedged item.
d. Changes to forecasted amounts of cash flows of hedged items and hedging instruments.

Disclosures of effects of Cash Flow Hedge Accounting:

The company has applied Hedge Accounting prospectively for the highly probable forecast transactions
as stated above, entered after 01 January 2020. Consequently, disclosure is made only for the transactions
designated for Hedge Accounting.
The company is holding the following derivative contracts:

Maturities
As at March 31, 2021
Less More
1-3 3-6 6-12

Consolidated Financial Statements

than 1 than 12 Total
Months Months Months
Month Months

Commodity Forward Contracts

Nominal Volume (Quantity in Mn Barrels) - 0.50 0.30 - - 0.8

Nominal amount (` / million) - 972.60 183.00 - - 1,155.60

Maturities
As at March 31, 2020
Less More
1-3 3-6 6-12
than 1 than 12 Total
Months Months Months
Month Months

Commodity Forward Contracts

Nominal Volume (Quantity in Mn Barrels) - 0.45 0.38 0.15 - 0.98
Nominal amount (` / million) - 240.60 158.50 104.70 - 503.80
The Impact of Hedging Instruments in Balance sheet is as under:

Particulars Commodity forward Commodity forward

contract- Margin contract- Margin
Hedging Hedging 659
2020-21 2019-20
Nominal Amount 1155.50 503.80
Carrying Amount (11.40) (241.10)
Line item in Balance sheet that include Hedge Other Financial Assets/ Other Financial
Instrument Other Financial Assets/
Liabilities Other Financial
Liabilities
 THE UNSTOPPABLE
ENERGY SOLDIERS
The Impact of Cash flow Hedge in the statement of Profit and Loss and Other comprehensive Income
(OCI):
(` in million)

Highly Probable Forcast Transaction

Particulars
2020-21 2019-20
Hedging Gain / (Loss) recognised in OCI* (11.40) (241.10)
Income tax on Above 2.90 60.70
Net amount recognised in Cash flow Hedge (8.50) (180.40)
Reserve
Amount reclassified from Cash flow hedge reserve (241.10) -
to Statement of Profit and Loss
Income tax on Above 60.70 -
Line item in the Statement of Profit and Loss that Revenue/Purchases Revenue/Purchases
includes the reclassification adjustment
*The Company expects that the amount of Loss recognised in cash flow hedge reserve through Other
comprehensive income (OCI) will be recovered in future period through gains in underlying transactions.
52.10 Price risks
The Company’s price risk arises from investments in equity shares (other than investment in group
companies) held and classified in the balance sheet either at fair value through other comprehensive
income (FVTOCI) or at fair value through profit or loss (FVTPL).
Investment of short-term surplus funds of the Company in liquid schemes of mutual funds provides high
level of liquidity from a portfolio of money market securities and high quality debt and categorized as
‘low risk’ product from liquidity and interest rate risk perspectives.
The revenue from operations of the company are also subject to price risk on account of change in
prices of Crude Oil, Natural Gas & Value Added Products.

52.10.1 Price sensitivity analysis

In respect of Company,
The sensitivity of profit or loss in respect of investments in equity shares at the end of the reporting
period for +/-5% change in price and net asset value is presented below:
660
Other comprehensive income for the year ended March 31, 2021 would increase/ decrease by `7,618.68
million (for the year ended March 31, 2020 would increase/ decrease by `6,292.85 million) as a result of
5% changes in fair value of equity investments measured at FVTOCI.
The Sensitivity of Revenue from operation to change in +/- 1 US$ in prices of crude oil, natural gas &
value added products (VAP)
(` in million)
Sensitivity of Revenue from operation 2020-21 2019-2020
Impact on Revenue from operation (net of levies) for US$ (+/-)55,914.20 (+/-)57,914.67
in prices of crude oil, natural gas & VAP
 ANNUAL REPORT
2020-21
In respect of subsidiary, OVL,
The sensitivity of profit or loss in respect of investments in mutual funds at the end of the reporting period
for +/-5% change in price and net asset value is presented below:
Profit before tax for the year ended March 31, 2021 would increase/decrease by `1,628.87 million (For
the year ended March 31, 2020 would increase/decrease by `1,511.44 million) as a result of the changes
in net asset value of investment in mutual funds.
In respect of subsidiary, HPCL,
The table below summarises the impact of increases/decreases in prices on Other comprehensive
Income for the period
(` in million)

Equity Instruments through OCI

1% Increase 1% Decrease 1% Increase 1% Decrease

Consolidated Financial Statements

31.03.2021 31.03.2020
Equity Investment in Oil India 32.80 (32.80) 22.10 (22.10)
Ltd.

52.11 Fair value measurement

This note provides information about how the Group determines fair values of various financial assets
and financial liabilities.
52.11.1 Fair value of the Group’s financial assets that are measured at fair value on a recurring basis
Some of the Group’s financial assets are measured at fair value at the end of each reporting period. The
following table gives information about how the fair values of these financial assets are determined.

661

ONGC net profit in FY’21 was `112,464 million

 THE UNSTOPPABLE
ENERGY SOLDIERS
In respect of company:
(` in million)

Financial Assets/ Fair value as at Fair value Valuation technique(s) and key
(Financial Liabilities) hierarchy input(s)
March 31, March 31,
2021 2020

Investment in Equity 152,336.60 125,857.06 Level 1 Quoted bid prices from Stock
Instruments (quoted) exchange-NSE Ltd.

Compulsorily Con- 233.90 220.69 Level 2 Discounted Free Cash Flow Meth-
vertible Preference odology
Share

Investment in Equity 37.21 0.32 Level 2 Discounted Free Cash Flow Meth-
Instruments odology

Employee Loans 14,014.18 13,911.86 Level 2 Discounted Cash Flows i.e. pres-
ent value of expected receipt/pay-
ment discounted using appropri-
ate discounting rate.

Financial Guarantee (1,226.22) (1,345.36) Level 2 Interest Rate Differential Model.

Lease Liability (104,210.83) (98,265.75) Level 2 Discounted Cash Flows i.e.

present value of expected receipt/
payment discounted using appro-
priate discounting rate.

Security Deposits (5,142.13) (6,588.05) Level 2 Discounted Cash Flows i.e.

from Contractors present value of expected receipt/
payment discounted using appro-
priate discounting rate.
662
Compulsory Converti- (78,752.21) (78,978.23) Level 2 Discounted Cash Flows i.e.
ble Debentures present value of expected receipt/
payment discounted using appro-
priate discounting rate.
 ANNUAL REPORT
2020-21
In respect of subsidiary company OVL,
Some of the Company’s financial assets are measured at fair value at the end of each reporting year. The
following table gives information about how the fair values of these financial assets are determined
(` in million)
Particulars Fair value Fair value Valuation technique and key
As at March As at March hierarchy input(s)
31, 2021 31, 2020
Financial assets
Investment in mutual 32,577.33 30,228.72 Level 1 NAV declared by respective Asset
funds Management Companies
Derivative assets 65.17 181.78 Level 1 Mark to Market valuation report
provided by banks.
Financial Liabilities

Consolidated Financial Statements

Derivative liabilities 905.32 1,932.44 Level 1 Mark to Market valuation report
provided by banks.

Deemed Capital 5,351.58 5,092.99 Level 2 Interest Rate Differential Model.

Contribution from
Holding Company
(Financial Guarantee
and Loans)
Finance Lease 369.78 369.78 Level 2 Valuation based upon risk adjusted
Obligation discount rate applied to get present
value of annuity till perpetuity
(Annuity capitalisation model).
Finance Lease 4,359.36 5,963.06 Level 2 Discounted Cash Flows i.e. present
Obligation value of expected receipt/payment
discounted using appropriate
discounting rate.
In respect of subsidiary company HPCL,
Fair value hierarchy
This section explains the judgements and estimates made in determining the fair value of the Financial
Assets and Financial Liabilities that are recognised and measured at fair value and amortised cost. To 663
provide an indication about the reliability of the inputs used in determining fair value, Group has classified
its Financial Assets and Financial Liabilities into the three levels prescribed under the accounting standard.
It does not include fair value information for financial assets and financial liabilities not measured at fair
value if the carrying amount is a reasonable approximation of fair value. An explanation of each level is
provided under Significant Accounting Policy.
 THE UNSTOPPABLE
ENERGY SOLDIERS
(` in million)
31.03.2021 31.03.2020
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial assets
Investments
- Investment in Equity 3,281.40 - - 2212.51 - -
Instruments
- Investment in Debt 54,175.80 - - 53448.60 - -
Instruments
- Others - - - - - -
Loans & Advances
- Employee Loans - 4207.80 - - 3,915.00 -
- Other Loans - 10,808.50 - - 14,379.40 -
Derivative Assets - 52.00 - - 160.40 -
Total 57,457.20 15,068.30 - 55,661.10 18,454.80 -
Financial liabilities
Borrowings
- Foreign Currency - 38,833.70 - - 34,357.80 -
Bonds
- Non Convertible - 110,332.60 - - 76,405.50 -
Debentures
- Oil Industry - 29,421.50 - - 30,119.80 -
Development Board
Loan
Derivative Liabilities - 18.40 - - 795.10 -
Total - 178,606.20 - - 141,678.20 -
Valuation techniques used to determine Fair Value

Type Valuation technique

Derivative instruments Discounted cash flow i.e. fair value of foreign exchange forward contracts
- forward exchange is estimated by discounting the difference between the contractual forward
664 contracts price and the current forward price for the residual maturity of the contract.
Commodity derivatives Fair value of commodity derivative contracts is estimated by determining
the difference between the contractual price and the current forward price
for the residual maturity of the contract.
Derivative instruments - Discounted cash flows i.e. Present value of expected receipt/payment.
interest rate swap
Non current financial Discounted cash flows. The valuation model considers the present value of
assets and liabilities expected receipt/payment discounted using appropriate discounting rates.
measured at amortised
cost
 ANNUAL REPORT
2020-21
52.12 Offsetting
In respect of subsidiary company HPCL,
The following table presents the recognized financial instruments that are eligible for offset and other
similar arrangements but are not offset, as at 31.03.2021 and 31.03.2020. The column ‘net amount’
shows the impact on the Company’s balance sheet if all set-off rights are exercised.
(` in million)

Effect of offsetting on the balance sheet Related amounts not offset

Gross Gross Net amounts Amount not Net Amount
amounts amounts presented in offset
set off in the balance
the balance sheet
sheet
March 31, 2021

Consolidated Financial Statements

Financial assets
Trade Receivables 80,605.60 (11,905.70) 68,699.90 - 68,699.90
Financial liabilities
Trade Payables 189,892.20 (11,905.70) 177,986.50 - 177,986.50
Other Current 207,780.20 - 207,780.20 - 207,780.20
Financial Liabilities
March 31, 2020
Financial assets
Trade Receivables 77,319.00 (37,977.10) 39,341.90 (1,382.20) 37,959.70
Financial liabilities
Trade Payables 152,665.00 (37,977.10) 1,14,687.90 114,687.90
Other Current 233,859.10 233,859.10 (1,382.20) 232,476.90
Financial Liabilities

52.13 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair
value disclosures are required)
665
Management considers that the carrying amounts of financial assets and financial liabilities recognized in
the financial statements except as per note 52.11 approximate their fair values.
 THE UNSTOPPABLE
ENERGY SOLDIERS
53 Disclosure of Interests in Joint Operation:
53.1 Joint Operations in India
In respect of certain unincorporated PSC/NELP/HELP/CBM blocks, the Company’s Joint Operation (JO)
with certain body corporates have entered into Production Sharing Contracts (PSCs) / Revenue Sharing
Contracts with GoI for operations in India. As per signed PSC & JOA, Company has direct right on Assets,
liabilities, income & expense of blocks. Details of these Joint Operation Blocks are as under:

Company’s Participating
Interest Others Partners and their PI in
Sl. No. Blocks
As at March As at March the JO/Operatorship
31, 2021 31, 2020
A Jointly Operated JOs
Panna, Mukta and Tapti (Note
1 40% 40% BGEPIL 30%, RIL 30%
No. 58.1.4)
2 NK-CBM-2001/1 55% 55% IOC 20%, PEPL 25%
B ONGC Operated JOs
3 AA-ONN-2001/2 80% 80% IOC 20%
4 CY-ONN-2002/2 60% 60% BPRL 40%
Vedanta Ltd (erstwhile Cairn
5 KG-ONN-2003/1 51% 51%
India Ltd)-49%
6 CB-ONN-2004/1 60% 60% GSPC 40%,
7 CB-ONN-2004/2 55% 55% GSPC 45%
8 CB-ONN-2004/3 65% 65% GSPC 35%
9 CY-ONN-2004/2 80% 80% BPRL 20%
10 MB-OSN-2005-1 80% 80% GSPC 20%
11 Raniganj (Note No. 53.1.10) 74% 74% CIL 26%
12 Jharia (Note No. 53.1.9) 74% 74% CIL 26%
13 BK-CBM-2001/1 80% 80% IOC 20%
14 WB-ONN-2005/4 75% 75% OIL 25%
AWEL 20%, GSPC 20%, IOC
15 GK-OSN-2009/1 40% 40%
20%
16 GK-OSN-2010/1 60% 60% OIL-30%, GAIL-10%
17 KG-OSN-2009/2* 90% 90% APGIC-10%
666 18 MB-OSN-2005/3 70% 70% EEPL-30%
19 KG-OSN-2001/3 80% 80% GSPC-10%, JODPL (10%)
CY-ONHP-2017/1*(Note No
20 60% 60% BPRL-40%
53.1.2)
C Operated by JO Partners
Vedanta Ltd (erstwhile Cairn
21 Ravva 40% 40% India Ltd) (Operator) 22.5%, VIL
25%, ROPL 12.5%
HEPI (operator)
22 CY-OS-90/1 (PY3) 40% 40% 18%, HOEC 21%
TPL 21%
 ANNUAL REPORT
2020-21

Company’s Participating
Interest Others Partners and their PI in
Sl. No. Blocks
As at March As at March the JO/Operatorship
31, 2021 31, 2020
Vedanta Ltd (erstwhile Cairn
23 RJ-ON-90/1 30% 30% India Ltd) (Operator) 35%,
CEHL 35%
Vedanta Ltd (erstwhile Cairn
CB-OS/2 –Development
24 50% 50% India Ltd) (operator) 40% , TPL
Phase
10%
HOEC (Operator) 35%, GSPC
25 CB-ON/7 30% 30%
35%
CB-ON/3 – Development
26 30% 30% EOL (Operator)70%
Phase
GSPC (Operator) 56%, Geo-

Consolidated Financial Statements

27 CB-ON/2- Development phase 30% 30%
Global Resources 14%
28 AA-ONN-2010/2 30% 30% OIL -50%(Operator), GAIL-20%
29 AA-ONN-2010/3 40% 40% OIL-40%(Operator), BPRL-20%
30 CB-ONHP-2017/9 40% 40% BPRL-60% (Operator)
31 AA-ONHP-2017/10 30% 30% OIL-70% (Operator)
32 AA-ONHP-2017/13 30% 30% OIL-70% (Operator)
*Proposed for relinquishment.
Note: There is no change in Previous year details unless otherwise stated.
Abbreviations:- APGIC- AP Gas Infrastructure Corporation Limited, AWEL- Adani Welspun Exploration Limited,
BGEPIL- British Gas Exploration & Production India Limited, BPRL- Bharat Petro Resources Limited, CEHL-
Cairn Energy Hydrocarbons Limited, CIL- Coal India Limited, EEPL- Essar Exploration & Production Limited,
EOL-Essar Oil Limited, EWP – East West Petroleum, GAIL- Gas Authority of India Limited, GSPC- Gujarat State
Petroleum Corporation Limited, HEPI- Hardy Exploration & Production India Limited, HOEC- Hindustan Oil
Exploration Company Limited, IOC- Indian Oil Corporation Limited, JODPL- Jubilant Offshore Drilling Private
Limited, OIL- Oil India Limited, PEPL-Prabha Energy Private Limited, RIL- Reliance Industries Limited, ROPL-
Ravva Oil (Singapore) Private Limited, TPL- Tata Petrodyne Limited, VIL- Videocon Industries Limited.

53.1.1 During the year 2020-21, Company has entered into Revenue Sharing Contracts with Government of
India for 7 blocks acquired under Open Acreage Licensing Policy (OALP) as detailed below:
667
Sl. OALP Name of Revenue sharing contracts/ Participating Nature of Activity
No. Round Blocks Interest
1 OALP-V CB-ONHP-2019/2 100% Exploration
2 OALP-V CB-ONHP-2019/1 100% Exploration
3 OALP-V CY-UDWHP-2019/1 100% Exploration
4 OALP-V MB-OSHP-2019/1 100% Exploration
5 OALP-V GS-OSHP-2019/1 100% Exploration
6 OALP-V GK-ONHP-2019/1 100% Exploration
7 OALP-V BP-ONHP-2019/2 100% Exploration
 THE UNSTOPPABLE
ENERGY SOLDIERS
53.1.2 During the year, the following ONGC Operated NELP Blocks have been relinquished:

Sl. No. Block Name Round ONGC’s PI-% Partners’ PI-%

1 GK-OSN-2009/2 NELP- VIII 40% AWEL-30%, IOCL-30%,
2 WB-ONN-2005/3 NELP- VII 100% NA
Similarly, in respect of following OLAP Blocks , the proposal for exit has been submitted to DGH:
Sl. ONGC’s
Block Name ROUND Partner PI-% Remarks
No. PI-%
1 CY-ONHP-2017/1 OALP-I 60 BPRL-40 Since the PEL is not granted
for Onshore part area by State
Govt of Tamil Nadu, proposal
for exit from the block is sub-
mitted to DGH on 23.02.2021.
2 CY-ONHP-2018/2 OALP-III 100 Not Applicable Since the PEL is not granted
by State Govt of Tamil Nadu,
proposal for exit from the
block is submitted to DGH on
03.03.2021.

53.1.3 Financial position of the Joint Operation –Company’s share is as under:

The financial statements of 157 nos. (Previous year 151), out of 167 nos. (Previous year 160) Joint
operation block (JOs/NELP/HELP), have been incorporated in the accounts to the extent of Company’s
participating interest in assets, liabilities, income, expenditure and profit / (loss) before tax on the basis
of statements certified in accordance with production sharing contract and in respect of balance 10
(Previous year 9) Joint operation blocks (JOs/NELP/CBM blocks), the figures have been incorporated
on the basis of uncertified statements prepared under the production sharing contracts. Both the figures
have been adjusted for changes as per Note No. 3.8. The financial positions of JO/NELP/HELP are as
under:-

668
As at March 31, 2021
(` in million)

Profit or
Non Non Other Total
Current Current (Loss) from
Particulars Current Current Revenue Comprehensive Comprehensive
Assets Liabilities continuing
Assets Liabilities Income Income
operations

NELP -100% PI (9) 372.68 169,392.67 448.44 1,054.62 1,586.75 (14,336.99) (6.22) (14,343.21)

HELP -100% PI (22) 10.44 6.56 0.05 - - (6,791.07) 1.25 (6,789.82)

DSF 100% (5) 7.11 201.85 - 9.65 - (30.62) - (30.62)

NELP/Pre NELP
Block with other 49,601.78 126,656.60 42,306.93 13,929.17 62,681.07 4,680.56 (0.11) 4,680.45
partner (28)

HELP Blocks with

3.75 1.28 163.86 - - (247.55) - (247.55)
other partners (3)

Surrendered (100) 819.67 44.76 16,831.37 59.07 - (557.91) - (557.91)

Total (167) 50,815.43 296,303.72 59,750.65 15,052.51 64,267.82 (17,283.58) (5.08) (17,288.66)

Further Break-up of above blocks as under:

Audited (149) 5,919.95 246,009.38 17,452.37 3,806.31 3,507.01 (37,210.77) (5.05) (37,215.82)

Certified (8)# 40,393.31 46,090.75 35,537.64 9,959.69 60,629.92 19,749.54 - 19,749.54

ANNUAL REPORT
Unaudited (10) 4,502.17 4,203.59 6,760.64 1,286.51 130.89 177.65 (0.03) 177.62

Total (167) 50,815.43 296,303.72 59,750.65 15,052.51 64,267.82 (17,283.58) (5.08) (17,288.66)

# Certified by other Chartered Accountants as per PSC provisions.

2020-21
669

Consolidated Financial Statements

 670
As at March 31, 2020

ENERGY SOLDIERS
THE UNSTOPPABLE
(` in million)

Profit or
Non Other Total
Current Non Current Current (Loss) from
Particulars Current Revenue Comprehensive Comprehensive
Assets Assets Liabilities continuing
Liabilities Income Income
operations

NELP -100% PI
148.28 127,833.04 437.07 1,079.18 90.91 (16,369.27) (17.06) (16,386.32)
(11)
HELP -100% PI
9.65 4.04 0.03 - - (1,673.77) 0.02 (1,673.74)
(16)

DSF 100% (5) 3.69 5.63 - - - (1.92) - (1.92)

NELP/Pre NELP
Block with other 37,836.42 135,458.88 40,573.20 12,784.32 98,093.63 8,442.56 (6.04) 8,436.52
partner (29)

HELP Blocks with

106.66 1.55 40.55 - - (99.68) - (99.68)
other partners (4)

Surrendered (95) 871.59 44.08 16,357.86 59.07 - (998.41) - (998.41)

Total (160) 38,976.29 263,347.23 57,408.70 13,922.57 98,184.54 (10,700.49) (23.08) (10,723.57)

Further Break-up of above blocks as under:

Audited (142) 6,569.68 212,001.11 16,783.57 3,557.70 2,912.51 (31,161.89) (22.71) (31,184.60)

Certified (9)# 31,919.34 49,362.54 37,714.69 9,233.94 95,188.66 20,482.91 - 20,482.91

Unaudited (9) 487.28 1,983.59 2,910.44 1,130.94 83.37 (21.50) (0.37) (21.87)

Total (160) 38,976.29 263,347.23 57,408.70 13,922.57 98,184.54 (10,700.49) (23.08) (10,723.57)

# Certified by other Chartered Accountants as per PSC provisions.

 ANNUAL REPORT
2020-21
53.1.4 Additional Financial information related to Joint Operation blocks are as under:
As at March 31, 2021
(` in million)

Cash and Current Depreciation

Interest Interest
Particulars Cash Financial and
Income Expense
Equivalents Liabilities Amortisation
NELP -100% PI (10) 0.03 333.27 1,289.06 0.19 78.51
HELP -100% PI (22) - 0.05 23.01 0.20 -
DSF 100% (5) - - - 0.25 -
NELP/Pre NELP Block with
334.43 36,037.64 19,774.45 467.36 934.22
other partner (28)
HELP Blocks with other
0.01 163.86 - - -
partners (3)

Consolidated Financial Statements

Surrendered (99) 0.09 16,782.25 (827.48) 0.85 -
Total (167) 334.56 53,317.07 20,259.04 468.85 1,012.73
Further Break-up of above
blocks as under:
Audited (149) 0.07 16,456.35 14,183.36 1.81 272.02
Certified (8)# 216.49 31,438.66 5,981.28 280.85 664.36
Unaudited (10) 118.00 5,422.06 94.40 186.19 76.35
Total (167) 334.56 53,317.07 20,259.04 468.85 1,012.73
# Certified by other Chartered Accountants as per PSC provisions.

As at March 31, 2020

(` in million)

Cash and Current Depreciation

Interest Interest
Particulars Cash Financial and
Income Expense
Equivalents Liabilities Amortisation
NELP -100% PI (11) 0.02 333.84 11,263.91 0.16 0.90
HELP -100% PI (16) - 0.03 19.84 0.11 -
DSF 100% (5) - - - 0.23 -
NELP/Pre NELP Block with
other partner (29)
445.65 36,825.52 19,457.78 1,209.18 1,830.04 671
HELP Blocks with other part-
- 40.55 32.78 - -
ners (4)
Surrendered (95) 0.09 16,303.04 - 18.46 -
Total (160) 445.76 53,502.98 30,774.31 1,228.14 1,830.94
Further Break-up of above
blocks as under:
Audited (142) 98.98 15,869.42 21,095.40 13.46 183.81
Certified (9)# 217.60 34,752.49 10,058.11 1,168.51 1,548.25
Unaudited (9) 129.18 2,881.07 (379.20) 46.17 98.88
Total (160) 445.76 53,502.98 30,774.31 1,228.14 1,830.94
# Certified by other Chartered Accountants as per PSC provisions.
 THE UNSTOPPABLE
ENERGY SOLDIERS
53.1.5 In respect of 1 Pre NELP block (Previous March 31, 2021) and waive off development/
year 3) which have expired as at March 31, production cost payable by the Company in
2021, the Company’s share of Unfinished SGL Field of the block as well as take all future
Minimum Work Programme (MWP) 100% royalty obligation of the Company as
amounting to `493.81 million (Previous year licensee. The process of entering into Farm-
`448.91 million) has not been provided for in out Agreement and amendment in Production
respect to block AA-ONJ-2. The Company Sharing Contract (PSC) is under progress.
has already applied for further extension Pending the execution of agreements, no
of period in these blocks as ‘excusable adjustment is made in the accounts in respect
delay’/ special dispensations citing technical of relinquishment of block RJ-ON/6.
complexities, within the extension policy
53.1.7 The Company is having 30% Participating
of NELP Blocks, including policy for north-
interest in Block RJ-ON-90/1 alongwith
east special dispensations, which are under
Vedanta Limited (erstwhile Cairn India Limited)
active consideration of GoI. The delays have
(Operator) and Cairn Energy Hydrocarbons
occurred generally on account of pending
Limited There are certain unresolved issues
statutory clearances from various Govt.
including cost recovery and sharing in respect
authorities like Ministry of Defence, Ministry
of exploration, development and production
of Commerce & Industry, environmental
cost in the Block between the Company and
clearances, State Govt. permissions etc. The
Operator of the Block amounting to US$
MWP amount of `493.81 million (Previous
1,186.27 million (equivalent to `87,178.90
year `448.91 million) is included in MWP
million) as on March 31, 2020, (based on
commitment under Note No. 58.3.2(a).
audited end of Year Statements provided by
As per the Production Sharing Contracts Operator). The amount under dispute related
signed by the Company with the GoI, the to cost recovery and sharing for FY 2020-21
Company is required to complete Minimum is yet to be finalized.
Work Programme (MWP) within stipulated
The Company, as Government nominee
time. In case of delay in completion of
under Article 13.2 is liable to contribute its
the MWP, Liquidated Damages (LD) are
share as per the PI, only for the development
payable for extension of time to complete
& production operations, and is not liable
MWP. Further, in case the Company does
to share Exploration Cost. However, any
not complete MWP or surrender the block
recovery of exploration expenditure by
without completing the MWP, the estimated
Operator will impact on the share of Cost Oil/
cost of completing balance work programme
Gas available to ONGC. The Operator already
is required to be paid to the GoI. LD (net
took recovery of Exploration expenditure of
of reversal) amounting to `100.09 million
US$ 388.37 Million (incurred upto Exploration
(Previous year `(226.60) million) and cost
Phase), hence the Company’s liability upto
of unfinished MWP (net of reversal) `996.96
Exploration phase is NIL. Further, the Operator
million (Previous year `35.99 million), paid/
672 has also claimed exploration cost (beyond
payable to the GoI is included in survey and
exploration phase of PSC) of US$ 147.11
wells written off expenditure respectively.
million (equivalent to `10,810.91 million)
53.1.6 Government of India has approved the being 30% of US$ 490.36 Million (equivalent
relinquishment of 30% Participating Interest to `36,036.36 million) from the Company
(PI) of ONGC in SGL Field with future interest upto FY 2019-20 (Previous year US$ 156.53
in block RJ-ON/6 in Jaisalmer Basin Rajasthan million and equivalent to `11,815.26 million)
and assignment of PI to Focus Energy from the Company, which in view of Company
Limited (Operator) and other JV partners is not tenable. The Company has shown a
on the condition that Focus Energy Limited sum of US$ 147.11 million (equivalent to
(Operator) will pay towards 100 % past royalty `10,810.91 million) under Contingent
obligation, PEL/ML fees, other statutory Liabilities, as the issues are presently under
levies (total amount `2087.50 million as on Arbitration proceedings.
 ANNUAL REPORT
2020-21
Pending settlement of issues, an amount of As all the conditions required for extension
US$ 133.21 Million (equivalent to `9,789.89 of PSC could not be complied with and
million), which is 30% of US$ 444.05 million the Addendum for extension of the PSC
(equivalent to `32,632.98 million) pertaining could not be signed by the Contractors and
to development and production cost have Government on or before May 14, 2020,
been accounted for as per the participating Government has allowed the Contractors
interest of the Company. to continue the Petroleum operations for
a period of three months or signing of
Royalty on production is being paid by the
PSC amendment, whichever is earlier. The
Company as licensee and the share of JV
Government subsequently extended the
Partners of Royalty is recoverable through
period of Petroleum Operations from time
revenue from Sale of Crude Oil and Gas as per
to time and currently it is extended upto July
PSC. Accordingly, an amount of `14,887.03
31, 2021. It is expected that Govt. will further
million outstanding from JV Partners has been
extend this period further and the Addendum
included in the revenue upto March 31, 2021.
for extension of the PSC will be signed by
53.1.8 The primary period of twenty five years of the all Parties. Accordingly, the accounts of the

Consolidated Financial Statements

Production Sharing Contract (PSC) of the Company’s share in the Block for FY 2020-
Block RJ-ON-90/1 expired on May 14, 2020. 21 has been prepared on a ‘going concern’
The Contractors in the Block had applied for basis.
extension of the PSC for a period of 10 years,
53.1.9 In respect of Jharia CBM Block, revised
which was approved by Government in
Feasibility Report (FR) has been approved
October 2018 under the pre-NELP Extension
in the 27th Steering Committee (SC) held on
Policy as per notification dated April 7,
September 9, 2019. In light of better techno-
2017, subject to certain conditions. One
economics, the Company has decided to
of the conditions for extension, stipulated
implement the revised FR as phases in the
by Government relates to notification of
light of overlap issue with Bharat Coking
certain audit exceptions raised for FY 2016-
Coal Limited and early implementation and
17 as per PSC provisions and requires
monetization. Therefore, Parbatpur and
payment of Additional Profit Petroleum, in
adjoining area was taken up in Phase-I
case these exceptions are accepted by
under the approved FR and accordingly,
Contractors. In connection with these audit
implementation strategy for Stage-I has
exceptions, US$ 156.03 million (`11,466.64
been approved by the Company on
million) relating to the share of Company
November 21, 2019 and 36th Operating
out of total US$ 520.10 million (`38,222.15
Committee (OC) meeting for Jharia CBM
million) has been raised by DGH on May 12,
Block held on December 10, 2019. The
2020. Subsequently in December 2020, the
same was communicated to the Partner,
amount of demand has been increased to
Coal India Limited (CIL) and was approved
US$ 654.83 million (Companies share US$
by the Board of Directors of CIL in its meeting
196.45 million), based on audit exceptions 673
held on January 10, 2020. As per Performa
for FY 2017-18. The other Partners in the JV
provided by DGH, all the formalities for
have disputed the demand with a Notice of
enhancement of participating interest (PI)
Arbitration dated May 14, 2020 against the
from 10% of CIL to 26% have been completed
Government. The Company is not a Party to
by both the Company (Assignor) and CIL
the Arbitration against Government and will
(Assignee) and the signed documents were
pay the amount, once liability, if any, arises
submitted to DGH for the approval of GoI
out of the Audit Exceptions is finalized for
on January 27, 2020. However, GoI, on the
the Contractors. The Company share of US$
basis of the application and supporting
196.45 million (`14,437.04 million) in the
documents has granted enhancement of
Audit Exceptions has already been shown
PI of CIL from 10% to 26% w.e.f January
under Contingent liabilities.
25, 2021. This has been contested by the
 THE UNSTOPPABLE
ENERGY SOLDIERS
Company as the provision and timing of final closing adjustment (i.e., working capital
exercising the option of enhancing PI from and other adjustments) to sale consideration
10% to 26% is very clearly defined in the viz. transactions from the economic date up
JOA i.e. the option shall be exercised by to the closing date has been provisionally
CIL before the start of Development Phase. carried out and a sum of `946.71 million is
Accordingly, DGH has been requested net payable to GSPC as final settlement and
to consider April 23, 2013 as the date of the same is under deliberation.
commencement of PI enhancement, as As per FIFO, the Company is entitled to receive
delay in PI enhancement is primarily due to sums as adjustments to the consideration
late submission of requisite documents by already paid based on the actual gas
CIL. Considering the provisions of JOA and production and the differential in agreed gas
approval of Steering Committee, the cash price. Pending executing mother wells and
calls amounting to `707.95 million from CIL estimating future production, the contingent
have been continued to be recognized at adjustment to consideration remains to be
26% w.e.f. April 23, 2013 (which is the start quantified.
date of development phase activity) upto
January 24, 2021 as against `272.29 million The Company has also paid part
of cash calls at the rate of 10% PI up to consideration of US$ 200 million (equivalent
January 24, 2021. to `12,650.00 million) for six discoveries other
than DDW Field in the Block KG-OSN-2001/3
53.1.10 In respect of Raniganj (N) CBM Block, the to GSPC towards acquisition rights for these
Feasibility Report (FR) is under process discoveries in the Block KG-OSN-2001/3 to
exploring different variants to optimize the be adjusted against the valuation of such
cost. Work Program and Budget for RE fields based on valuation parameters agreed
2020-21, BE 2021-22 have been approved between GSPC and the Company.
by the Steering Committee. The issue
of connectivity of proposed locations in The JO partner JODPL is under liquidation
Raniganj with Urja Ganga Pipeline is being since December 2017 and has defaulted all
discussed with GAIL (India) Limited, Kolkata. the cash calls since acquisition of the block
Government of West Bengal has granted by the Company. The amount of outstanding
PML for 311.79 Sq. km including the BAPL cash call from JODPL as at March 31, 2021 is
overlap area on February 10, 2020 w.e.f. `1368.26 million. The assignment of JODPL’s
June 9, 2019. Pending final decision on the 10% PI in accordance with provisions of
Block, an impairment provision of `617.36 Production sharing Contract (PSC) is pending
million has been provided in the books. with Management Committee (MC). As per
provision of the Joint Operating Agreement
53.1.11 During the year 2017-18 the Company had (JOA), the receivable amount of `1,368.26
acquired the entire 80% Participating Interest million after the acquisition of block is required
(PI) of Gujarat State Petroleum Corporation to be contributed by the non-defaulting JO
Limited (GSPC) along with operatorship
674 rights, at a purchase consideration of US$
Partner in there ration of participating interest.
Pending decision of assignment of JODPL’s
995.26 million (equivalent `62,950.20 million) PI by MC a provision for an amount of
for Deen Dayal West (DDW) Field in the `1,216.23 million has been made against the
Block KG-OSN-2001/3. The revised PI in said cash call receivables from JODPL, being
the block after above acquisition stands for the company’s share as per PI ratio.
the Company 80%, GSPC 10% and Jubilant
Offshore Drilling Private Limited (JODPL) 53.1.12 In case of Joint Venture Block CB-ONN-2004/3,
10%. the discovery well Uber#2 ceased to flow from
June 23, 2020. ONGC in consultation with JV
A farm-in Farm-out agreement (FIFO) was partner M/s GSPC has initiated a proposal
signed with GSPC on March 10, 2017 and for examination / surrendering the NELP
the said consideration has been paid on block CB-ONN-2004/3 and relinquishment of
August 04, 2017 being the closing date. In the development area of 10.78 sq. km. The
the current year 2020-21, accounting for the
 ANNUAL REPORT
2020-21
Management Committee (MC) in March 2021 the same may be extended to other similarly
has however advised that immediate action placed PSCs of the operator. MC further
plan be drawn up to revive the field, which recommended that the above dispensation
can include drilling a new development well to opt for SBI exchange rate may be made
in a better part of the reservoir, so that fairly available as one time measure also to other
good quantity of gas, as approved in the operators, should they opt to do so, provided
FDP, is achieved at the earliest. Accordingly, they have adopted SBI exchange rate at the
the matter is being examined to achieve the corporate level.
MC approved production profiles. Pending
Subsequently, Directorate General of
assessment of the same, an impairment loss
Hydrocarbons (DGH) which is PSC
of `369.29 million has been provided in the
monitoring arm of the Ministry of Petroleum
books.
and Natural Gas (MoPNG), Government of
53.1.13 The designated currency, for the purpose of India, submitted the proposal for the approval
cost recovery under the Production Sharing of MoPNG for adoption of SBI reference rate
Contracts (PSC) is US$. Thus, the expenditure in lieu of RBI reference rate for the block VN-
incurred in Indian Rupees (`) needs to be ONN-2009/3 in May 2020 which is at present

Consolidated Financial Statements

converted in US$ for the preparation of cost pending with MoPNG.
recovery statements. The Company has
already submitted the draft Management The Company is following the SBI reference
Committee agendas for the corresponding exchange rates on consistent basis for
blocks for adoption of State Bank of India maintenance of accounts as the main banker
(SBI) reference rate in place of Reserve Bank of the Company is State Bank of India, and
of India (RBI) reference rate for preparation of there is no impact on the Company financial
cost recovery statements. statements due to adoption of SBI exchange
rate, as the transactions of foreign currency
The management committee (MC) of the block in the Company are recorded at actual cost
named VN-ONN-2009/3 has recommended basis and foreign currency liabilities & assets
to the Government for approval of SBI at period end are also recognised as per SBI
reference rate in lieu of RBI reference rate for reference rate. The financial implication for
the conversion purpose between US$ and ` adoption of SBI reference rate preparation
in modification of provision laid down under of cost recovery statements with DGH, as
the PSC. The MC also recommended that against the RBI reference rate is immaterial.

53.2 Joint Operation outside India

The details of Group’s joint operations as on March 31, 2021 are as under:

S. No Name of the Project Group’s Other Operator Project status

and Country of participating Consortium
Operation share (%) Members 675
1. Azeri, Chirag, Guneshli 2.31 BP - 30.37% BP The project is under
Fields (ACG), Azerbaijan, SOCAR - 25.00% development and
Offshore Chevron - 9.57% production
INPEX - 9.31%
Equinor^ -
7.27%
Exxon-Mobil -
6.79%
TPAO - 5.73%
Itochu - 3.65%
 THE UNSTOPPABLE
ENERGY SOLDIERS

S. No Name of the Project Group’s Other Operator Project status

and Country of participating Consortium
Operation share (%) Members
2. Block 06.1, Vietnam, 45 Rosneft Vietnam Rosneft The project is under
Offshore B.V. - 35% Vietnam B.V. production
Petro Vietnam -
20%
3. Block 5A, South Sudan, 24.125 Petronas - Joint The project is
Onshore 67.875% Operatorship under exploration,
Nilepet - 8% by all development and
partners. production however
the field continues
to be under
shut down since
December 2013.
Presently production
resumption activities
are underway.
4. Block A-1, Myanmar, 17 POSCO POSCO The project is under
Offshore International International production
Cooperation - Cooperation
51%
MOGE- 15%
GAIL – 8.5%
KOGAS – 8.5%
5. Block A-3, Myanmar, 17 POSCO POSCO The project is under
Offshore International International production
Cooperation - Cooperation
51%
MOGE- 15%
GAIL – 8.5%
KOGAS – 8.5%
6. Block B2, Myanmar, 97 Machinery ONGC Videsh The project is under
Onshore and Solutions exploration
Company Ltd. -
676 3%
7. Block CPO-5, Colombia, 70 PetroDorado – ONGC Videsh The project is
Onshore 30% under exploration,
development and
production.
8. Block EP3, Myanmar, 97 Machinery ONGC Videsh The project is under
Onshore and Solutions exploration
Company Ltd. -
3%
 ANNUAL REPORT
2020-21

S. No Name of the Project Group’s Other Operator Project status

and Country of participating Consortium
Operation share (%) Members
9. Block Farsi, Iran, 40 IOC – 40% ONGC Videsh The project’s
Offshore OIL - 20% exploration phase
under Exploration
Service Contract
(ESC) ended on
24 June 2009.
Agreement on MDP
and Development
Service Contract is yet
to be agreed.
10. Block RC-9, Colombia, 50 Ecopetrol - 50% Ecopetrol The block is
Offshore under process of

Consolidated Financial Statements

relinquishment
11. Block RC-10, Colombia, 50 Ecopetrol - 50% ONGC Videsh The block is
Offshore under process of
relinquishment
12. Block SS 04, 45 OIL-45% ONGC Videsh The project is under
Bangladesh, Offshore BAPEX-10% exploration
13. Block SS 09, 45 OIL-45% ONGC Videsh The project is under
Bangladesh, Offshore BAPEX-10% exploration
14. Block SSJN-7, Colombia, 50 Canacol Energy Canacol The project is under
Onshore - 50% Energy exploration
15. Block XXIV, Syria, 60 IPRMEL - 25% IPR MEL The project is
Onshore Triocean-15% temporarily shut down
due to deteriorated
law and order situation
in the country since
April 2012
16. Sakhalin -1, Russia, 20 ENL - 30% ENL The project is under
Offshore SODECO - 30% development and
SMNG - 11.5% production.
R N Astra - 8.5%
17. SHWE Offshore Pipeline, 17 Posco Posco Pipeline is completed
Myanmar, Offshore International International and is under use for
677
Corporation – Corporation transportation of gas
51% from Blocks A1/A3,
MOGE- 15% Myanmar
GAIL – 8.5%
KOGAS – 8.5%
18. Port Sudan Product 90 OIL – 10% ONGC Videsh Pipeline was
Pipeline, Sudan completed and was
handed over to Govt.
of Sudan in earlier
years
 THE UNSTOPPABLE
ENERGY SOLDIERS

S. No Name of the Project Group’s Other Operator Project status

and Country of participating Consortium
Operation share (%) Members
19. Block Area 1, 16 TOTAL- 26.5% TOTAL The project is
Mozambique, Offshore informed to be under
(10% through OVRL India MITSUI-20% force majeure by
Ltd. and 6% through ENH-15% the operator due to
BREML) security concerns
BPRL-10% w.e.f. April 24, 2021
the effect of which
BREML-10% # has been considered
PTTEP-8.5% for assessment of
impairment.
20. Block 1a, 1b, & 4, GPOC. 25 CNPC - 40% Joint The project is under
South Sudan, (Through Petronas - 30% Operatorship production.
ONGC Nile Ganga B.V.) Nilepet - 5% (GPOC)
21. Block BC-10 Brazil, 27 Shell – 50% Shell The project is under
Offshore (Through QPI – 23% development and
ONGC Campos Ltda.) production
22. Block BM-SEAL-4 Brazil, 25 Petrobras- 75% Petrobras The project is under
Offshore (Through exploration
ONGC Campos Ltda.)
23. Lower Zakum Abu Dhabi 4 IndOil Global B.V. Adnoc The project is under
(through Falcon Oil and - 3% Offshore development and
gas B.V.) BPRL production
International
Ventures B.V. -
3%
ADNOC-60%
Japan’s
Inpex-10%
CNPC-10%
Eni-5%
TOTAL-5%
Abbreviations used:

678 TOTAL - Total S.A, France; BAPEX - Bangladesh Petroleum Exploration & Production Company Limited; BP
- British Petroleum; BPRL - Bharat PetroResources Limited; BREML - Beas Rovuma Energy Mozambique
Limited; CNPC- China National Petroleum Corporation; Ecopetrol - Ecopetrol S.A, Colombia; ENH - Empresa
Nacional De Hidrocarbonates, E.P.; ENL - Exxon Neftegas Limited; Exxon Mobil - Exxon Mobil Corporation;
GAIL - GAIL (India) Limited; INPEX - INPEX Corporation; IOC - Indian Oil Corporation Limited; IPRMEL - IPR
Mediterranean Exploration Limited; Itochu - Itochu Corporation; KMG - Kazmunaygas; KOGAS - Korea Gas
Corporation; MITSUI - MITSUI & Co. Limited; MOGE - Myanmar Oil and Gas Enterprise; Nilepet - Nile Petroleum
Corporation; OIL - Oil India Limited; ONGC Videsh - ONGC Videsh Limited; Petrobras - Petrobras Colombia Ltd;
PetroDorado - PetroDorado South America S.A.; Petronas - Petronas Carigali Overseas SdnBhd; Petrovietnam -
Vietnam Oil and Gas Group; PTTEP - PTT Public Company Limited; QPI- Qatar Petroleum International; SMNG
- Sakhalinmorneftegas Shelf; SOCAR - State Oil Company of Azerbaijan Republic; SODECO - Sakhalin Oil
Development Company Limited; SOLLP - Satpavey Operating LLP; STATOIL - Den Norske Stats Oljeselskap;
TPAO - Turkiye Petrolleri A.O; Triocean - TriOcean Mediterranean
^Earlier Statoil - Den Norske Stats Oljeselskap.
# ONGC Videsh holds 60% shares in BREML.
53.2.1 The Financial position of the Joint Operation projects/ blocks are as under:
As at March 31, 2021
(` in million)

Particulars Current Non-Current Current Non-Current Total Revenue Profit or Profit or Other Total
Assets Assets Liabilities Liabilities Loss from Loss from Comprehensive Comprehensive
continuing discontinued Income Income
operations operations

A. Audited (with limited scope) as at March 31, 2021

Block 06.1, Vietnam 1,718.49 4,877.21 1,224.62 1,930.85 7,440.56 (561.45) - - (561.45)

Block Sakhalin 1, Russia 26,748.60 238,677.32 10,652.97 35,115.68 60,408.78 10,452.04 - - 10,452.04

GNPOC & GPOC, Sudan 4,732.23 32,968.63 5,912.42 2,502.59 10,650.29 7,190.15 - - 7,190.15

BC-10, Brazil & Block BM- 3,332.19 24,994.15 7,032.81 8,556.21 10,677.09 (649.80) - - (649.80)
SEAL-4

Total (A) 36,531.51 301,517.31 24,822.82 48,105.33 89,176.71 16,430.94 - - 16,430.94

B. Audited (with limited scope) as at December 31, 2020 (the latest audited information is available for December 31, 2020. The below figures are
as at March 31, 2021)

Block CPO 5, Colombia 834.50 273.27 3,455.33 - 7,413.62 1,939.12 - - 1,939.12

Total (B) 834.50 273.27 3,455.33 - 7,413.62 1,939.12 - - 1,939.12

C. Unaudited

Port Sudan Product 12.06 9.92 1,866.96 - - (10.03) - - (10.03)

Pipeline, Sudan

Block Farsi, Iran 63.84 0.03 2.99 - (17.95) - - (17.95)

-

Block SS-04, Bangladesh 56.94 124.76 158.68 - (32.70) - - (32.70)

-

ANNUAL REPORT
Block SS-09, Bangladesh 88.71 73.05 117.16 - - (28.42) - - (28.42)

2020-21
679

Consolidated Financial Statements

 680
Particulars Current Non-Current Current Non-Current Total Revenue Profit or Profit or Other Total

ENERGY SOLDIERS
THE UNSTOPPABLE
Assets Assets Liabilities Liabilities Loss from Loss from Comprehensive Comprehensive
continuing discontinued Income Income
operations operations

Block A-1, Myanmar 1,000.06 10,350.91 1,728.69 - 6,908.32 2,411.53 - - 2,411.53

Block A-3, Myanmar 399.97 1,922.17 193.52 - 3,502.56 973.77 - - 973.77

SHWE Offshore Pipeline, 260.01 1,219.60 52.62 - 2,171.55 1,513.73 - - 1,513.73

Myanmar

Block Area 1, 5,912.33 329,422.90 14,492.75 - - (269.44) - - (269.44)

Mozambique

Block ACG, Azerbaijan 1,322.39 41,212.20 2,049.45 11,779.47 6,831.18 3,165.50 - - 3,165.50

Block SSJN-7, Colombia - - 63.79 - - (179.94) - - (179.94)

Block RC-9, Colombia - 3.46 0.27 - - (0.63) - - (0.63)

Block RC-10, Colombia 42.52 0.02 - - - (0.76) - - (0.76)

Myanmar Block EP 3, O/S 10.70 22.12 81.75 - - (12.79) - - (12.79)

(Non-Op)

Myanmar Block B2 56.29 6.17 172.49 - - (13.31) - - (13.31)

Onshore

Block 5A, Sudan 730.92 4,640.36 942.74 - - (1,309.90) - - (1,309.90)

Block 24, Syria - - 615.25 - - (63.28) - - (63.28)

Total ( C) 9,956.74 389,007.67 22,539.11 11,779.47 19,413.61 6,125.38 - - 6,125.38

Grand Total 47,322.75 690,798.25 50,817.26 59,884.80 116,003.94 24,495.44 - - 24,495.44

As at March 31, 2020
(` in million)

Current Non-Current Current Non-Current Total Revenue Profit or Profit or Other Total
Particulars Assets Assets Liabilities Liabilities Loss from Loss from Comprehensive Comprehensive
continuing discontinued Income Income
operations operations

Block 06.1, Vietnam 1,316.84 7,937.53 1,316.00 1,843.76 10,243.24 4,703.84 - - 4,703.84

Block Sakhalin 1, Russia 16,434.88 229,490.74 10,769.59 34,349.11 82,032.87 32,284.56 - - 32,284.56

Block CPO 5, Colombia 373.20 847.69 2,559.47 - 5,209.26 3,433.40 - - 3,433.40

Port Sudan Product 6.35 10.19 1,917.51 - - 185.81 - - 185.81

Pipeline, Sudan

Block Farsi, Iran 67.62 (0.04) 3.35 - - (13.83) - - (13.83)

Block SS-04, Bangladesh 48.23 60.22 50.29 - - (40.45) - - (40.45)

Block SS-09, Bangladesh 79.49 9.31 41.03 - - (36.78) - - (36.78)

GNPOC & GPOC, Sudan 5,349.52 32,893.07 9,413.90 2,961.56 11,432.79 (15,414.25) - - (15,414.25)

BC-10, Brazil & Block BM- 3,615.93 32,524.42 2,076.94 19,039.18 15,551.68 (2,058.39) - - (2,058.39)
SEAL-4

Block A-1, Myanmar 2,715.23 11,317.68 1,817.24 - 8,318.93 4,414.22 - - 4,414.22

Block A-3, Myanmar 419.42 2,440.37 917.64 - 5,366.59 1,893.38 - - 1,893.38

SHWE Offshore Pipeline, 265.71 1,435.67 248.08 - 2,536.02 1,790.93 - - 1,790.93

Myanmar

Block Area 1, 1,605.32 284,658.84 4,972.18 - - (9.03) - - (9.03)

Mozambique

ANNUAL REPORT
2020-21
681

Consolidated Financial Statements

 682
Current Non-Current Current Non-Current Total Revenue Profit or Profit or Other Total

ENERGY SOLDIERS
THE UNSTOPPABLE
Particulars Assets Assets Liabilities Liabilities Loss from Loss from Comprehensive Comprehensive
continuing discontinued Income Income
operations operations

Block ACG, Azerbaijan 1,085.14 39,915.98 2,290.86 11,777.09 8,214.24 (2,140.64) - - (2,140.64)

Block SSJN-7, Colombia - - 45.81 - - (112.31) - - (112.31)

Block RC-9, Colombia - - 7.67 - - (1.44) - - (1.44)

Block RC-10, Colombia 39.19 0.03 - - - (0.70) - - (0.70)

Myanmar Block EP 3, O/S 25.36 0.41 72.10 - - (47.57) - - (47.57)

(Non-Op)

Myanmar Block B2 224.99 0.06 320.82 - - (51.45) - - (51.45)

Onshore

Block 5A, South Sudan 728.68 5,234.37 673.28 - - (4,920.83) - - (4,920.83)

Block Satpayev, 3.71 8.07 0.14 - (220.96) - - (220.96)

Kazakhstan -

Block 24, Syria 64.31 0.41 631.91 - - (4.58) - - (4.58)

Grand Total 34,469.11 648,785.02 40,145.81 69,970.69 148,905.63 23,632.92 - - 23,632.92

Financial information is not presented in respect of closed projects.

 ANNUAL REPORT
2020-21
53.2.2 Additional Financial information related to Joint Operation blocks are as under:
As at March 31, 2021
(` in million)

Particulars Cash and Current Non-Current Depreciation Interest Interest Income Tax
Cash Financial Financial and Income Expense Expense or
Equivalents Liabilities Liabilities Amortisation Income
Block 06.1, Vietnam 210.87 1,316.00 - 1,991.85 0.77 - -
Port Sudan Product - - - -
4.43 1,917.51 0.08
Pipeline, Sudan
Block Farsi, Iran 15.73 3.35 - - 0.18 - -
Block SS-04, - - - - -
38.84 50.29
Bangladesh
Block SS-09, - - - - -
55.52 41.03
Bangladesh

Consolidated Financial Statements

GNPOC & GPOC,
1,342.90 5,912.42 2,502.59 1,851.83 - - (636.36)
Sudan
BC-10, Brazil & Block
483.25 6,912.54 3,962.41 5,850.55 4.19 1,490.12 (332.77)
BM-SEAL-4
Block Sakhalin 1, - -
5,122.53 7,701.77 14,379.12 114.15 17,118.37
Russia
Block RC-9, Colombia - 7.67 - - 0.72 - -
Block RC-10, - - - - -
- 1.67
Colombia
Block CPO 5, 1,239.73 - 0.03 - -
17.41 4.16
Colombia
Block ACG, Azerbaijan 2.60 2,008.07 3,898.30 2,598.18 1.93 - 1,013.69
Block SSJN-7, - - - - -
45.81 -
Colombia
Block A-1, Myanmar 206.07 (995.51) - 2,676.48 - - (320.49)
Block A-3, Myanmar 372.61 647.54 - 883.36 - - 829.94
SHWE Offshore 19.33 15.55 - - 440.25
198.45 -
Pipeline, Myanmar
Myanmar Block EP 3, 23.11 72.10 - - - - -
O/S (Non-Op)
Myanmar Block B2 222.89 320.82 - - - - - 683
Onshore
Block Area 1, - - - 28.66 -
14,432.93 -
Mozambique
Block 5A, South 315.61 - - - -
673.28 31.46
Sudan
Block Satpayev, 3.71 - - - -
0.14 1.68
Kazakhstan
Block 24, Syria - 631.91 - - - - -
Grand Total 8,457.41 42,954.96 10,363.30 30,462.98 127.85 1,518.78 18,112.64
 THE UNSTOPPABLE
ENERGY SOLDIERS
As at March 31, 2020
(` in million)
Non-
Cash and Current Depreciation Income Tax
Current Interest Interest
Particulars Cash Financial and Expense or
Financial Income Expense
Equivalents Liabilities Amortisation Income
Liabilities
Block 06.1, Vietnam 210.87 1,316.00 - 1,991.85 0.77 - -
Port Sudan Product
4.43 1,917.51 - - 0.08 - -
Pipeline, Sudan
Block Farsi, Iran 15.73 3.35 - - 0.18 - -
Block SS-04,
38.84 50.29 - - - - -
Bangladesh
Block SS-09,
55.52 41.03 - - - - -
Bangladesh
GNPOC & GPOC,
2,601.59 9,413.90 2,961.56 2,485.82 - - (1,640.04)
Sudan
BC-10, Brazil &
1,419.16 2,012.71 15,802.67 8,685.62 122.33 2,234.83 (1,058.31)
Block BM-SEAL-4
Block Sakhalin 1,
5,122.53 7,701.77 - 14,379.12 114.15 - 17,118.37
Russia
Block RC-9,
- 7.67 - - 0.72 - -
Colombia
Block RC-10,
- - - - 1.67 - -
Colombia
Block CPO 5,
17.41 129.73 - 0.03 4.16 - 1,114.99
Colombia
Block ACG,
2.60 2,008.07 3,898.30 2,598.18 1.93 - 1,013.69
Azerbaijan
Block SSJN-7,
- 45.81 - - - - -
Colombia
Block A-1, Myanmar 206.07 1,000.93 - 2,676.48 - - (320.49)

Block A-3, Myanmar 372.61 647.54 - 883.36 - - 829.94

SHWE Offshore
19.33 15.55 - 198.45 - - 440.25
684 Pipeline, Myanmar
Myanmar Block EP
23.11 72.10 - - - - -
3, O/S (Non-Op)
Myanmar Block B2
222.89 320.82 - - - - -
Onshore
Block Area 1,
- 4,959.86 - - - - -
Mozambique
Block 5A, South
315.61 673.28 - 31.46 - - -
Sudan
Block Satpayev,
3.71 0.14 - 1.68 - - -
Kazakhstan
Block 24, Syria - 631.91 - - - - -
Grand Total 10,652.01 32,969.98 22,662.53 33,932.04 245.99 2,234.83 17,498.41
 ANNUAL REPORT
2020-21
53.3 Joint Operation in respect of subsidiary HPCL
53.3.1 The subsidiary has entered into production sharing oil & gas exploration contracts in India in consortium
with other body corporate. These consortia are:

Participating Interest of HPCL in %

Name of the Block
As on March 31, 2021 As on March 31, 2020
In respect of HPCL
In India
Under NELP IV
KK- DWN-2002/2 20.00 20.00
KK- DWN-2002/3 20.00 20.00
CB- ONN-2002/3 15.00 15.00
Under NELP V
AA-ONN-2003/3 15.00 15.00

Consolidated Financial Statements

Under NELP VI
CY-DWN-2004/1 10.00 10.00
CY-DWN-2004/2 10.00 10.00
CY-DWN-2004/3 10.00 10.00
CY-DWN-2004/4 10.00 10.00
CY-PR-DWN-2004/1 10.00 10.00
CY-PR-DWN-2004/2 10.00 10.00
KG-DWN-2004/1 10.00 10.00
KG-DWN-2004/2 10.00 10.00
KG-DWN-2004/3 10.00 10.00
KG-DWN-2004/5 10.00 10.00
KG-DWN-2004/6 10.00 10.00
MB-OSN-2004/1 20.00 20.00
MB-OSN-2004/2 20.00 20.00
RJ-ONN-2004/1 22.22 22.22
RJ-ONN-2004/3 15.00 15.00
Under NELP IX
MB-OSN-2010/2 30.00 30.00
685
Cluster – 7 60.00 60.00
In respect of PPCL
In India
South Rewa – PSC 10.00 10.00
Sanganpur – PSC 50.00 50.00
Hirapur – SC 50.00 50.00
Outside India
Yolla Field (Australia) License T/L-1 11.25 11.25
Trefoil Field (Australia) Permit T/18P 9.75 9.75
 THE UNSTOPPABLE
ENERGY SOLDIERS
53.3.1.1 The block CB-ONN-2002/3 was awarded under NELP IV bidding round and the production sharing contract
was signed on 06.02.2004. The exploration Minimum Work Program has been completed. Production from
SE#3/4 wells of the Block is in progress, which had started during FY 2017-18. The share of the assets,
liabilities, income and expenditure is considered based on the Management certified financials for the
FY 2020-21.
53.3.1.2 In respect of Cluster – 7, the matter is under litigation (refer Note No. 58.1.8(b)). The share of the assets,
liabilities, income and expenditure is considered based on the Management Certified financials for FY
2020-21.
53.3.1.3 Other than above, the remaining blocks are in the process of relinquishment/ under relinquishment and
the share of the assets, liabilities, income and expenditure, if any, is considered based on information
received from these blocks.

53.3.2 In respect of step-down subsidiary PPCL

53.3.2.1 ONGC Onshore Marginal Fields
The Company was awarded Service Contracts dated 28th April, 2004, for development of ONGC’s
Hirapur, Khambel and West Bechraji onshore marginal oil fields.
The Company executed Agreements for development of Hirapur, Khambel and West Bechraji onshore
marginal fields with Valdel Oil and Gas Private Limited (VALDEL) with equal share in the Service
Contracts. The Service Contracts in respect of Khambel and West Bechraji had been terminated in
February, 2009 by ONGC and the Service Contract with respect to Hirapur field is operating currently.
The Company’s share of assets and liabilities as at 31st March 2021 and the Income and expenditure
for the year in respect of above joint venture is as follows:
(` in million)

Particulars As at March 31, As at March 31,

2021 2020
A Property, Plant & Equipment (Gross) 99.90 99.90
B Intangible asset under development 13.60 13.60
C Other Net Non-Current Assets 2.90 1.90
D Net Current Assets (*) 41.10 34.50
E Income 6.50 8.30
F Expenditure 18.20 16.10
686
(*) Includes receivable from joint venture amounting to `39.20 million. (As at March 31, 2020 `27.40
million.)
 ANNUAL REPORT
2020-21
53.3.2.2 Sanganpur Field MoP&NG vide its letter dated June 2, 2017
has terminated the PSC. Accordingly,
The Company acquired 50% participating
Company had created a ‘Provision for Write-
interest in Sanganpur field from M/s
off of Sanganpur Assets’ of `66.50 millon in
Hydrocarbon Development Company Pvt.
FY 2017-18. (FY 20-21: Nil)
Ltd. (HDCPL) effective 1st September, 2004.
Accumulated amount prior to acquisition of The Company’s share of assets and liabilities
Sanganpur field amounting `11.80 million as at March 31, 2021 and the Income,
have been included in Sanganpur field expenditure for the year in respect of above
Assets. The Company has accounted its joint venture is as follows:
proportionate share in the Sanganpur field
(` in million)
based on estimated un-Audited accounts as
at 31st March, 2017. As at As at
In FY 2014-15 , the operator of the block M/s Particulars March March
HDCPL has committed default in the payment 31, 2021 31, 2020
to its contractor. The petition was filed by Property, Plant & - -

Consolidated Financial Statements

contractor ETA Star Golding limited for non- Equipment (Gross)
payment of its invoices by M/s HDCPL in their Other Net Non- (0.20) (0.20)
another asset wherein Bombay High Court Current Assets
vide order dated 14th Nov, 2014 in Company
Petition 550 of 2013 had passed order for Net Current Assets (1.00) (1.00)
appointment of liquidator for assets and (*)
business of Company M/s HDCPL. However, Income - -
as per Production Sharing contract (PSC), Expenditure - -
the ownership of underlying hydrocarbon
lies with GoI, hence Sanganpur field was (*) Includes payable to joint venture
not attached and operations in the field were amounting to `0.40 million (as at March 31,
continued. Further, MoP&NG vide its letter 2020: `0.40 million)
dated June 2, 2017 has terminated the PSC
and all operations in the field were called off.
53.3.2.3 ONGC Offshore Marginal Fields (Cluster-7)
Since the appointment of official liquidator,
the bank account of HDCPL were seized, The Company along with Consortium member,
HDCPL has neither raised any invoice to M/s Hindustan Petroleum Corporation
IOCL for transfer of crude nor raised any cash Limited (HPCL) (PI - 60%) and M/s M3nergy
call to PPCL for operation in the field. The (PI – 30%) was awarded a Contract vide letter
payment of Royalty and Cess to concerned of award dated 31st March, 2006 for the
authorities are also pending since then. development of ONGC’s offshore marginal
Oilfields viz. B -192, B - 45 and WO – 24. The
Said order of Bombay High Court was
Service Contract for Cluster-7 was signed on 687
challenged by HDCPL before its Division
27th September, 2006 between ONGC and
Bench and is still pending before the Court.
Consortium members. The Company is the
In the meantime, HDCPL had initiated an
Executing Contractor and its participating
arbitration proceeding against MoPNG for
interest (PI) is 10%.
termination of PSC. However, PPCL is not
a part of it. Under Section 9 of Arbitration The said Service Contract was terminated
and Conciliation Act, Directorate General of by ONGC. Subsequently, Group started
hydrocarbon (DGH) on behalf of MoP&NG arbitration proceedings against M3nergy
has initiated proceeding for possession of which are still in progress, hence the joint
the field. bank account has not been closed.
 THE UNSTOPPABLE
ENERGY SOLDIERS
53.3.2.4 SR – ONN – 2004 / 1 (South Rewa Block) The Company’s share of assets and liabilities
as at 31st March, 2021 in respect of above
The Company along with Consortium member
joint venture is as follows:
M/s Jaiprakash Associates Limited (PI - 90%)
(` in million)
was awarded PSC for the SR-ONN-2004/1
block vide letter dated 12th February, 2007 As at As at
of Ministry of Petroleum & Natural Gas (MOP Particulars March March
&NG) under NELP – VI round. The Company 31, 2021 31, 2020
is the executing contractor and its PI is 10%. Property, Plant and 0.01 0.01
The PSC was signed on 2nd March, 2007. Equipment (Gross)
Consortium has proposed to relinquish Intangible asset - -
the block effective from 23rd October, under development
2014 and Operating Committee Resolution
Other Net Non- 0.07 0.07
(OCR) for relinquishment of the block has
Current Assets
been submitted to Directorate General of
Hydrocarbon (DGH). DGH vide its letter Net Current Assets 30.62 30.74
dated Feb. 5, 2018 has communicated that (*)
the Block stands relinquished with effect from Expenditure 0.13 0.01
23.10.2014 subject to the compliance of PSC
and the P&NG rules. (*) Includes receivables from joint venture
amounting to `26.80 million (as at March 31,
The South Rewa Block has standing inventory 2020: `27.00 million).
of `37.60 million in which the company has
share of 10%. The company is in the process 54 In respect of subsidiary company, HPCL-
of carrying out elaborate valuation of the Estimated Hydrocarbon Proven Reserves as
inventory for further disposal. The same has on 31st March, 2021 in the Oil fields are as
been recorded at cost. follows:

54.1 Domestic Operations (Hirapur - On-shore Marginal Fields)

As at March 31, 2021 As at March 31, 2020

Particulars
MM BBLS MMT MM BBLS MMT
Recoverable Reserves (*) 2.344 0.315 2.368 0.318
(*) The Company Share is 50% of total

54.2 International Operations (Yolla Field, Australia – License T/L 1 – Offshore Filed)

As at March 31, 2021 As at March 31, 2020

688 Particulars
MM BoE MM BoE
Recoverable Reserves (*) 1.036 1.237
(*) For respective share of the company

54.3 Quantitative Particulars of Petroleum:

Total Dry Crude Production FY 2020-21 (BoE) FY 2019-20 (BoE)

Hirapur Field (*) 11,823 14,101
Yolla Field (T/L1) Australia 283,149 287,559
TOTAL 294,972 301,660
(*) For total share in Field.
 ANNUAL REPORT
2020-21
55 Disclosure of Interests in subsidiaries:
For disclosure related to name and interests in subsidiaries, refer Note No. 4.

56 Disclosure of Interests in Joint Arrangements and Associates:

For disclosure related to joint venture and associates refer Note No.4, Note No. 14.1.11 and
Note No. 14.1.12.

57 Disclosure under Indian Accounting Standard 36 – Impairment of Assets

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

Consolidated Financial Statements

57.2 The Value in Use of producing/developing CGUs is determined under a multi-stage approach, wherein
future cash flows are initially estimated based on Proved Developed Reserves. Under the circumstances
where further development of the fields in the CGUs are under progress and where the carrying value
of the CGUs is not likely to be recovered through exploitation of proved developed reserves alone, the
Proved and probable reserves (2P) of the CGUs are taken for the purpose of estimating future cash
flows. In such cases, full estimate of the expected cost of future development is also considered while
determining the value in use.
57.3 In assessing value in use, the estimated future cash flows from the continuing use of assets and from
its disposal at the end of its useful life are discounted to their present value. The present value of cash
flows has been determined by applying discount rates of 14.29% (as at March 31, 2020: 15.55%) for
Rupee transactions and 9.60% (as at March 31, 2020: 10.07%) for crude oil, natural gas and value added
products revenue, which are measured in US$. Future cash inflows from sale of crude oil, natural gas and
value added products have been computed using Management’s estimate of future crude oil, natural gas
and value added products, discounted applying the rate applicable to the cash flows measured in US$.
57.4 The outbreak of Covid-19 pandemic globally and volatility in global crude oil and natural gas markets
has caused significant disturbance and slowdown of economic activity during previous year. During the
year, there has been a rebound in global Crude Oil and Natural Gas prices due to ease in pandemic
driven lockdown restrictions globally. The Company has considered possible effects of regained stability
in product market on the recoverability of its Cash Generating Units. The Company has considered the
prevailing business conditions to make an assessment of future crude oil and natural gas prices based
on internal and external information / indicators of future economic conditions. Based on the assessment, 689
the Company has recorded a net impairment reversal to the extent the value in use exceeds the carrying
amount subject to accumulated impairment provision and has disclosed the same as an exceptional
item amounting to `13,750.34 million (Previous year net impairment loss of `48,990.47 million), this
consist of net impairment reversal at Onshore CGUs amounting to `22,599.26 million (Previous year:
net impairment loss of `28,581.43 million) and net impairment loss at Offshore CGUs amounting to
`8,848.91 million (Previous year `20,409.04 million). In addition to the aforesaid exceptional item, a net
impairment loss of `6,387.41 million (Previous year `16,864.71 million) has been provided in CGUs which
are already impaired.
 THE UNSTOPPABLE
ENERGY SOLDIERS
57.5 The following 2P reserves for respective CGU were considered as a basis for the impairment testing as at
March 31, 2021:

Quantity of Reserves used for Impair-

Name of the CGU
ment Assessment (In MMT)
Assam Onshore Asset 37.82
KG-OSN-2001/3 Block 17.97
Rajahmundry Onshore Asset 13.90
RJ-ON-90/1 Block 13.47
Ratna (Western Offshore) 8.28
WO 16 (Western Offshore) 8.17
B-193 (Western Offshore) 5.86
G-1 GS-15 (Eastern Offshore) 4.16
Silchar Onshore Asset 0.91
Rajasthan Exploratory Asset 0.10
57.6 Impairment testing of assets under exploratory phase (Exploratory wells in progress) has been carried out
as on March 31, 2021 and a net impairment loss of `3,772.15 million (Previous year `13,007.51 million)
has been provided during the year.
57.7 In respect of subsidiary OVL, the company carried out impairment test as at March 31, 2021 in respect
of its Cash Generating Units (CGUs) based on value in use method. The Company identified impairment
in respect of 2 CGUs and impairment reversal in respect of 3 CGUs and provided for net impairment of
`4,562.66 million during the year ended March 31, 2021 (for the year ended March 31, 2020 net impairment
of `31,265.00 million was recognised). The net provision for impairment is considered as exceptional item.
The following 2P reserves of the respective CGUs have been considered for the impairment assessment:

No CGU Proved and Probable

Reserves (MMTOE) as
at March 31, 2020
1 Imperial, Russia 40.601
2 Vankor, Russia 71.363
3 Area-1,Mozambique 200.708
4 Block-5A, South Sudan 2.797
690
5 GPOC, South Sudan 5.558
6 PIVSA, Venezuela 4.314
7 Carabobo-1, Venezuela 13.628
8 ACG, Azerbaijan 8.774
57.8 The subsidiary OVL has considered the equity share investment, preference share investment, loans
given and interest accrued thereon, to its wholly owned subsidiary Imperial Energy Limited as carrying
value of investment. The cash flows for assessing the value in use have been estimated based on the life
of blocks till 2063. The existing validity period of licenses of various blocks are ranging from upto 2022 to
till 2038 which are expected to be extended by the host government at the initiative of the Imperial energy
in line with the provisions of the sub soil contract in view of the available reserves estimated up to 2063 as
per GKG, the State commission for Mineral resources.
 ANNUAL REPORT
2020-21
The production for next five years have been have been worked out based on the desired
estimated in alignment with the work program margins for deciding on impairment of related
from 2021-22 to 2025-26 and thereafter as Cash Generating Units. Since there is no
per the design documents approved by the indication of impairment of assets as at Balance
regulator. Sheet date as per the assessment carried out,
no impairment has been considered. In view
57.9 In respect of subsidiary HPCL, considering
of assumptions being technical, peculiar to the
the Government policies and modalities of
industry and Government policy, the auditors
compensating the oil marketing companies
have relied on the same.
towards under-recoveries, future cash flows

58 Contingent Liabilities, Contingent Assets and commitments (to the extent not provided for)
58.1 Contingent Liabilities: Claims / disputes not acknowledged as debt:-
(` in million)
As at March 31, As at March 31,
S.No. Particular
2021 2020

Consolidated Financial Statements

A In respect of Group
I Income tax 95,365.20 107,079.31
II Excise Duty 17,409.40 17,856.68
III Custom Duty 3,479.65 3,437.94
IV Royalty 604.84 604.84
V Cess 6.45 6.45
VI Sales Tax 45,407.10 45,157.61
VII Octroi and other Municipal Taxes 148.06 66.89
VIII AP Mineral Bearing Land (Infrastructure) Cess 3,329.74 3,234.71
IX Specified Land Tax (Assam) 12,214.82 11,039.96
X Claims of contractors in Arbitration/Court. 188,498.37 182,635.82
XI Service Tax (Note No. 58.1.2) 56,700.35 53,786.56
XII GST (Note No. 58.1.2) 79,915.76 63,582.29
XIII Employees Provident Fund 66.35 66.35
XIV Other Matters (Note No. 58.1.3 & 58.1.4) 195,855.54 196,542.53
Sub Total ( A ) 699,001.64 685,097.94
B In respect of Joint Ventures and Associates
I Income tax 834.20 712.19 691
II Excise Duty 3,979.48 1,539.66
III Custom Duty 116.98 104.98
IV Sales Tax 2,661.77 2,661.86
V Service Tax 338.50 185.53
VI GST 0.47 -
VII Claims of contractors in Arbitration/Court. 2,664.18 2,213.01
VIII Other 2,705.08 2,358.41
Sub Total ( B ) 13,300.66 9,775.65
Total ( A+B ) 712,302.29 694,873.59
 THE UNSTOPPABLE
ENERGY SOLDIERS
58.1.1 The Group’s pending litigations comprise on royalty. The Hon’ble High Court of Madras
claims against the Group and proceedings heard the matter on April 3, 2019 and issued
pending with Tax / Statutory/ Government notice to Central Government and State
Authorities. After review of all its pending Government. The Central Government has
litigations and proceedings, the Group filed their counter affidavit on August 26,
has made adequate provisions, wherever 2019. The Company has filed additional
required and disclosed the contingent grounds to the writ petition and filed rejoinder
liabilities, wherever applicable, in its financial to the counter of the Central Government
statements. The Group does not expect before Hon. Madras High Court on January
the outcome of these proceedings to have 24, 2020. The date of next hearing is not
a material impact on its financial position. scheduled as yet.
Future cash outflows in respect of the
The total estimated amount (including penalty
above are determinable only on receipt of
and interest up to March 31, 2021) works out
judgments/ decisions pending with various
towards Service Tax is `39,604.84 million
forums/ authorities.
(Previous year `39,001.85 million) and GST is
58.1.2 The Company had received demand orders `77,173.72 million (Previous year `61,041.86
from Service Tax Department at various million). Since the Company is contesting the
work centres on account of Service Tax on matter, it has been considered as contingent
Royalty in respect of Crude oil and Natural liability. Further, as an abundant caution,
gas, appeals against such orders have been the Company has deposited Service Tax
filed before the Tribunals. The Ahmedabad and GST along-with interest under-protest
Tribunal adjourned the matter sine-die vide amounting to `13,524.39 million (Previous
order dated June 25, 2019, against which the year `13,509.56 million) and `56,777.04
Company has filed writ petition before the million (Previous year `45,531.20 million)
Hon’ble Gujarat High Court. In this matter, respectively.
Hon’ble Gujarat High Court in the hearing
58.1.3 There are certain unresolved issues including
held on January 04,2021 directed the revenue
cost recovery and sharing in respect of
authorities to file counter affidavit by January
exploration, development and production
21, 2021. The Central Government has filed
cost in the Block between the Company and
counter affidavit on January 21, 2021. The
Operator - Vedanta Limited (erstwhile Cairn
next date of hearing before Hon’ble Gujarat
India Limited) of the Block RJ-ON-90/1.
High court is not scheduled as yet. The
Pending settlement of issues, the company
Company had also obtained legal opinion
has shown an amount of US$ 147.11 million
as per which the Service Tax/GST on Royalty
– equivalent to `10,810.91 million (Previous
in respect of Crude oil and Natural gas is
year: US$ 232.02 million – equivalent to
not applicable. Meanwhile, the Company
`17,512.87 million) under contingent liability
also received demand order dated January
as on March 31, 2021. For further details,
692 01, 2019 on account of GST on Royalty in
please refer Note No. 53.1.7.
the State of Rajasthan against which the
Company filed writ petition (4919/2019) 58.1.4 The Company, with 40% Participating Interest
before Hon’ble High Court of Rajasthan. The (PI), was a Joint Operator in Panna-Mukta
Hon’ble High Court of Rajasthan heard the and Mid and South Tapti Fields along with
matter on April 3, 2019 and issued notice to Reliance Industries Limited (RIL) and BG
Department with a direction that no coercive Exploration and Production India Limited
action shall be taken against the Company. (BGEPIL) each having 30% PI, (all three
The final hearing has not yet taken place. together referred to as “Contractors”) signed
The Company also filed writ of mandamus two Production sharing Contracts (PSCs)
(9961/2019) before the Hon’ble High Court with Government of India (Union of India) on
of Madras seeking stay on the levy of GST December 22, 1994 for a period of 25 years.
 ANNUAL REPORT
2020-21
The PSCs for Panna Mukta and Mid & South of the arbitration. Further the award had
Tapti have expired on December 21, 2019. also been challenged before the English
In terms of the Panna Mukta Field Asset Commercial Court (London High Court).
Handover Agreement, the Contractors of Based on the above facts, the Company had
PMT JV are liable for the pre-existing liability. also responded to the letters of DGH stating
that pending finality of the order, the amount
In December 2010, RIL & BGEPIL (JV
due and payable by the Company was not
Partners) invoked an international arbitration
quantifiable. In view of the Company, if any
proceeding against the Union of India in
changes are approved for increase in the
respect of certain disputes, differences and
Cost Recovery Limit (CRL) by the Arbitral
claims arising out of and in connection with
Tribunal as per the terms of the PSCs the
both the PSCs. The Ministry of Petroleum
liability to Government of India (GOI) would
and Natural Gas (MoP&NG), vide their
potentially reduce.
letter dated July 4, 2011, had directed the
Company not to participate in the Arbitration The English Court has delivered its final
initiated by the JV Partners (BGEPIL & RIL). verdict on May 2, 2018 following which the
MoP&NG has also stated that the Arbitral Arbitral Tribunal re-considered some of its

Consolidated Financial Statements

Award would be applicable to the Company earlier findings from the 2016 FPA (Revised
also as a constituent of the Contractors for Award).The Government of India and JV
both the PSCs. Partners have challenged parts of the
Revised Award before English Court. On
Directorate General of Hydrocarbons (DGH),
February 12, 2020, the English Court passed
vide letter dated May 25, 2017 had informed
a verdict favouring the challenges made by
the Company that on October 12, 2016, a
BGEPIL and RIL and also remitted the matter
Final Partial Award (FPA) was pronounced
in the Revised Award back to Arbitral Tribunal
by the Tribunal in the said arbitrations. As
for reconsideration. Based on the information
informed by BGEPIL, additionally Audit
shared by BGEPIL in January 2021, the
Award on January 11, 2018, Agreement Case
Tribunal issued a verdict favouring BGEPIL/
Award on October 1, 2018 and Jurisdictional
RIL on the remitted matter, which has been
Award on March 12, 2019 were wherein
challenged by the GOI before the English
the issues relate to the aforesaid disputes.
Court. The Challenge hearings have been
However, the details of proceedings of the
delayed due to COVID-19 and are expected
FPA and other Orders are not available with
to be heard in the latter half of FY 2021-22.
the Company. DGH, vide their letters dated
May 25, 2017 and June 4, 2018, marked to Based on the information shared by BGEIPL,
the Contractors, had directed the payment of The GOI has also filed an execution petition
differential Government of India share of Profit before the Hon’ble Delhi High Court seeking
Petroleum and Royalty alleged to be payable enforcement and execution of the October
by Contractors pursuant to Governments 12, 2016 FPA. BGEIPL / RIL contend that
interpretation of the FPA (40% share of GOI’s execution petition is not maintainable 693
the Company amounting to US$ 1,624.05 and have opposed the reliefs sought by the
million, including interest up to November GOI under the said petition. The matter is
30, 2016) equivalent to `119,351.43 million pending before the Hon’ble Delhi High Court
(March 31, 2020: `122,583.29 million). and no final orders on the reliefs sought by
In response to the letters of DGH, the JV the GOI have been passed so far.
partners (with a copy marked to all Joint
In January 2018, the Company along with
Venture Partners) had stated that demand of
the JV partners has filed an application with
DGH was premature as the FPA did not make
MC for increase in CRL in terms of the PSCs.
any money award in favour of Government of
The application has been rejected by MC.
India, since quantification of liabilities were to
Pursuant to the rejection, the JV partners
be determined during the final proceedings
have filed a claim with Arbitral Tribunal. The
 THE UNSTOPPABLE
ENERGY SOLDIERS
CRL increase hearings before the Arbitral and Development] Act 1948 (ORD Act). Once
Tribunal planned in FY 2020-21 have also the lease order is granted, the lessee has
been rescheduled to FY 2021-22 due to to execute lease deeds with the respective
COVID-19. State Government. The stamp duty on the
executed lease deed is payable as per the
DGH vide letter dated January 14, 2019
Stamp Act of the respective States. Certain
has advised to the contractors to re-cast
State Governments are of the view to include
the accounts for Panna-Mukta and Mid and
the amount of Royalty apart from other
South Tapti Fields for the year 2017-18.
payments like Security Deposit, surface
Pending finalization of the decision of the
rent and dead rent etc. for the purpose of
Arbitral Tribunal, the JV partners and the
calculation of stamp duty under the Stamp
Company had indicated in their letters to
Duty Act (s) applicable for such States.
DGH that the final recasting of the accounts
was premature and thus the issues raised by However, the company is of the view that
DGH may be kept in abeyance. the royalty payable by the Company is not
a rent to the State Government(s) but is
During the financial year 2010-11, the Oil
payable under Rule 14 of the Petroleum and
Marketing Companies, nominees of the GoI
Natural Gas Rules, 1959 (PNG Rules). There
recovered US$ 80.18 million [Share of the
is a distinction between the concept of rent
Company US$ 32.07 million (equivalent to
and royalty. The word “royalty” signifies in
`2,356.82 million)] as per directives of GoI
mining lease that part of reddendum which
in respect of Joint Operation - Panna Mukta
is variable and depends upon the quantity
and Tapti Production Sharing Contracts (refer
of minerals gotten or the mineral worked out
Note No. 19.1). The recovery is towards
within a specified period. Whereas rent is the
certain observations raised by auditors
amount payable for use and occupation of
appointed by DGH under the two PSCs for
land. Hence, it could be reasonably assumed
the period 2002-03 to 2005-06 in respect of
that for the purpose of calculation of stamp
cost and profit petroleum share payable to
duty, amount of royalty would not form part
GOI.
of the consideration value of lease deeds
Pending finality by Arbitration Tribunal on to be executed for PML granted. Ministry of
various issues raised above, re-casting of the Petroleum and Natural Gas, Government of
financial statements and final quantification India communicated to the State Government
of liabilities, no provision has been accounted of Tamil Nadu vide letter dated December, 31,
in the financial statements. The demand 2014, that royalty should not be taken as a
raised by DGH, amounting to US$ 1,624.05 basis for fixation of Stamp Duty to the mining
million equivalent to `119,351.43 million leases granted under the ORD Act read with
(March 31, 2020: `122,583.29 million) PNG Rules.
has been considered as contingent
The Solicitor General of India, through his
694 liability. The Company’s share of US$
opinion dated May 05, 2007, had also opined
32.07 Million (`2,356.82 Million) (March
that the distinction between royalty and
31, 2020: `2,426.64 Million) recovered by
rent is well settled. Rent would be payable
Government of India has been disclosed at
regardless of whether the property is worked
Note No. 19.1.
upon or not. On the other hand, royalty is a
58.1.5 The Company is operating Petroleum variable figure. It would depend upon the
Mining Leases (PML) granted by the State quantity of mineral obtained. If the mine is
Government (s) after initial clearance from not worked upon, rent would nevertheless
the Government of India (GoI). The grant of be payable. Hence, he opined that inclusion
oil mining lease is regulated and governed of royalty for the purpose of calculation of
by the provisions of the Oilfields [Regulation stamp duty is unjustified and not tenable. In
 ANNUAL REPORT
2020-21
absence of clarity on the issue the amount to be made in the financial statements at this
of firm liability or contingent liability is stage. In the assessment of the management
unascertainable. based on independent and competent legal
opinion obtained and other attendant factors
58.1.6 In respect of subsidiary, OVL
including circular no. 35/9/2018-GST dated
The Service Tax Department had issued March 05, 2018 issued by Central Board
a demand cum show-cause notice dated of Excise and Customs, the possibility of
October 11, 2011 requiring the Company to the success of the Company’s position is
show cause why service tax amounting to extremely high and the possibility of the
`28,163.14 million (including Education Cess success of contentions of the Department
and SHE cess), the interest on such amount is very low. Since the chances of payability
and penalty should not be demanded and of the service tax itself have been evaluated
recovered from the Company. Service by the management as being remote/very
Tax Department has calculated these low, the chances of assessment of interest
tax amounts based on foreign currency and penalty are evaluated to be much
expenditure reported in the Company’s lower. Accordingly, the amounts covered by

Consolidated Financial Statements

financial statements covering the reporting the abovementioned show-cause notices
periods from April 1, 2006 to December 31, (i.e. tax amount as well as potential interest
2010 and contending that these expenses and penalty thereon) are not considered as
represent business auxiliary services contingent liability in accordance with the
rendered by the Company foreign branches applicable accounting standards. Further,
and operator of the Joint Venture/ Consortium according to the legal opinion obtained
to the Company. Subsequently, five more by the Company, a show-cause notice in
demand-cum-show cause notices have itself does not qualify as a demand and the
been issued based on similar contentions chance of the claim being payable by the
covering the period upto March 31, 2015 to Company is remote as the Company has a
show cause why service tax amounting to very good case to argue and succeed before
`32,863.61 million (including Education cess the concerned authorities based on the legal
and SHE cess), the interest on such amount position as on date.
and penalty should not be demanded and
58.1.7 In respect of subsidiary MRPL, there is
recovered from the Company. A demand-
a claim from the custom department for
cum-show cause notice has been issued
customs duty amounting to `2,121.14
based on similar contentions covering the
million along with applicable interest and
period April 1, 2015 to March 31, 2017 to
penalties totally amounting to `6,168.37
show cause why service tax amounting to
million in respect of classification of tariff of
`15,633.22 million (including Education cess
the reformate for the purpose of payment of
and SHE cess), the interest on such amount
import duty. An appeal has been filed before
and penalty should not be demanded and
recovered from the Company. Further,
the Appellate Authority contesting the entire 695
demand. Pending outcome of the appeal
a demand-cum-show cause notice dt.
proceedings, no provision for the said
10.02.2020 has been issued based on similar
demand has been made in the books.
contentions covering the period April 1, 2017
to June 30, 2017 to show cause why service 58.1.8 In respect of subsidiary HPCL,
tax amounting to `2119.93 million (including
a) Guarantees given to others includes
Education cess and SHE cess), the interest
`9,013.00 million (as at March 31, 2019
on such amount and penalty should not
`7,915.10 million) towards share of
be demanded and recovered from the
jointly controlled entities and associates
Company.The Company is of the view that
and `2,669.40 million (as at March 31,
the said service tax is not payable and
2019 `2,762.50 million) towards share of
contesting the same. No provision is required
jointly controlled operations.
 THE UNSTOPPABLE
ENERGY SOLDIERS
b) The Group with a Participating Interest By Orders dated 10th January, 2019 the
(PI) of 70% along with M/s M3nergy Bombay High Court set aside all three
Sdn. Bhd (M/s M3nergy) (PI-30%) were Arbitration Awards. As the Awards were
awarded service contract in March, 2006 set aside (on the basis of which the
for development of ONGC’s offshore enforcement application was filed by
marginal oilfields of cluster-7. PPCL HPCL), on 28.02.2019 the Malaysian
was the executing contractor. Parties High Court at Kuala Lumpur allowed the
provided necessary Bank Guarantees application of M3nergy to set aside the
to ONGC. Since M/s M3nergy could enforcement order with liberty to file fresh
not meet their contractual obligations, proceedings, if Group succeed later.
the contract was terminated by ONGC Meanwhile, Group have filed Appeals
and Bank guarantees were forfeited. against the setting aside order (of Single
The Group demanded the refund of the Judge Bombay High Court) before the
monies forfeited towards encashment of Division Bench of the Bombay High
Bank Guarantee along with other claims Court. After hearing arguments of parties,
from M/s M3nergy. A counter claim of on 16th of October, 2019 the Bombay
42.60 Million US$ was made by M3nergy High Court set aside the Single Judge’s
on termination of such service contract. Order and remanded all the 3 matters
The matter was referred to Arbitration. back to the Single Judge of the Bombay
High Court, to decide the matter afresh
The Arbitral Tribunal passed 3 Awards.
on merits. This Order was challenged by
The 1st Partial Award, the 2nd Partial
M3nergy before the Supreme Court by
Award and the Final Award. All three
filing Special Leave Petition (SLP) which,
were in favour of the Group. The 1st partial
after brief arguments, was dismissed as
arbitration award dated 09.01.2014 held
withdrawn (by M3nergy) on 31st January
that M3nergy has committed breach
2020. As a result, the Single Judge of
of the contract and hence their claims
Bombay High Court will hear the matter
were disallowed and the Arbitral Tribunal
afresh on merits.
held that Group is entitled for damages,
which will be quantified later. The 2nd As a result, Group’s share of the
Partial Award dated 27.09.2017 allowed awarded amount which is approximately
2 claims of the Group, viz., (1) A claim `4,908.70 million (91.30 Million US$
of US$ 91.3 million towards loss of @ exchange rate of `48.68/US Dollar
profit (by a majority Award) and (2) a prevailing on January 6, 2009 plus
claim of recovery of damages by way of `464.20 million towards towards loss
money lost due to encashment of Bank of profit/damages/costs) and interest
Guarantees of `416.00 million (by a thereon has not been recognized
unanimous Award). Both amounts were on a conservative basis. Further, the
696 allowed with interest. Arbitral Tribunal claim raised by M3Energy to the extent
passed final award as to cost vide Award of Group’s share i.e. approximately
dated 15.06.2018 thereby directing `2,669.40 million (@ Exchange rate of
M3nergy to pay `48.20 million to the 1 USD = `73.115), being considered
Group towards cost of arbitration. remote is also not recognised.
All three Awards were challenged by c) In respect of PPCL, Company was
M3nergy before the Bombay High Court. awarded an Exploration block AA ONN
However, there was no stay granted by 2010/1 in Tripura under NELP IX in
Bombay High Court, Hence, Group filed consortium with ABG Energy Ltd (ABG).
applications for (a) Mareva Injunction The Product Sharing Contract (PSC) was
and (b) Enforcement of the Award before signed with Government of India (GOI)
the Courts in Malaysia.
 ANNUAL REPORT
2020-21
by the consortium on August 30, 2012. costs of proceedings subject to the
Company has 20% PI (Participating condition that on receipt of the amount
Interest) and ABG 80% PI. As per the by PPCL from ABG, the said amount
Joint Bidding agreement, ABG will carry shall be passed on by PPCL to GOI
Company during the exploration phase within a period of three months from the
i.e. Company’s share of 20% expenditure date of receipt of the amount.
during exploration phase shall be borne
d) In respect of HBL, EPCC Vendors – NCLT
by ABG. In case of any discovery, 10%
case: In the month of Oct 2018, one of the
of Company’s share paid by ABG will
EPCC vendor has filed petition against
be recovered by them out of profit and
HBL in NCLT, Kolkata Bench under IBC
10% will be paid by them anyway. As
Code 2016 in which party has raised a
per discussions before signing of PSC
claim of `199.00 million in lieu of unpaid
and written confirmation, ABG was to
operational debt, interest on alleged debt
submit back up guarantee to Company
and legal expenses. On 12.02.2020,
to enable Company to submit bank
order against HBL was passed by NCLT,
guarantee to GOI for their share of
Kolkata accepting application/ petition of

Consolidated Financial Statements

20%. The value of bank guarantee to be
our Vendor and thereby NCLT appointed
submitted by ABG to Company is US$
Insolvency resolution Professional (IRP).
1.801 Million. ABG did not submit bank
However, being aggrieved, against the
guarantee of their 80% share by due date
NCLT Kolkata Order, Group sought stay
to GOI. Also since back up guarantee
against execution of NCLT Kolkata order
was not submitted by ABG to Company,
and Hon’ble Supreme court granted
Company also could not submit the bank
interim stay against the impugned order
guarantee for their 20% share to GOI.
on 06.03.2020. The matter was heard on
In view of non-submission, GOI 26.02.2021 in Hon’ble Supreme Court
terminated the PSC dated 30th August and the court has allowed our appeal
2012 vide letter dated 15th October 2013 and remanded the matter to NCLAT, to
and has imposed liquidated damages of decide the issue on merit.
US$ 9.143 Million vide letter dated 6th Feb
2015 as per Article 5.6 of PSC. Company
58.1.9 In respect of subsidiary PMHBL,
has kept ABG on notice that it is their
responsibility to pay the entire quantum of In the following cases of claims against the
liquidated damages, including the share company, no reliable estimate could be
of Company, if Company is compelled to made of the liability:
pay its share of liquidated damages by a) 11 Writ Petition case filed by land owners
the GOI, and if such payment is made, against PMHBL at Hon’ble High Court of
then company will have to claim this Karnataka, Bangalore for enhancement
money from ABG. of compensation against order of Hasan 697
Company had invoked arbitration against District Court.
ABG in the matter on 10th October 2016. b) 4 cases filed by Land owners at Mangalore
After appointment of arbitrator on behalf District Court for enhancement of
of ABG by Delhi High Court Order dated Compensation.
22nd September 2017, three-member
tribunal has been constituted. The first c) 1 writ Petition filed by by the Land owner
preliminary sitting of the Arbitral Tribunal in the High Court of Karnataka, Bangalore
was held at New Delhi on 06.04.2018. On against the order of Chikkamangalure
30.10.2019 Arbitral Tribunal has passed District Court for enhancement of
award for an amount of US$ 1.801 Million Compensation.
with interest in favor of PPCL along with
 THE UNSTOPPABLE
ENERGY SOLDIERS
58.2 Contingent asset and ‘Revenue Sharing Contracts’ with
Government of India / Nominated Blocks:
A contingent asset is a possible asset that
arises from past events and whose existence i. In respect of NELP/HELP blocks
will be confirmed only by the occurrence or in which the Company has 100%
non-occurrence of one or more uncertain future participating interest: `41,454.05
events not wholly within the control of the entity. million (Previous year `28,381.59
During the normal course of business, several million).
unresolved claims are currently outstanding.
ii. In respect of NELP/HELP blocks in
The inflow of economic benefits, in respect
Joint Operations, Company’s share:
of such claims cannot be measured due to
`2,339.97 million (Previous year
uncertainties that surround the related events
`2,646.45 million).
and circumstances.
iii. In respect of DSF blocks in which the
In respect of subsidiary OVL, Contingent
Company has 100% participating
assets represent interest in respect of carried
interest: `14,986.03 million (Previous
finance (ENH) upto the Balance Sheet date that
year `15,318.90 million)
would be recognisable on reasonable certainty
of ultimate collection. The details of the same iv. In respect of subsidiary OVL,
are mentioned below:- estimated amount of Minimum Work
Programme (MWP) is `8,940.75
(` in million)
million (as at March 31, 2020:
Particulars As at March As at March `9,824.85 million).
31, 2021 31, 2020 (b) In respect of ONGC Petro Additions
Contingent 2,828.23 2,037.92 Limited, a Joint Venture Company `862.81
Asset million (previous year `639.50 million) on
account of subscription of Share Warrants
58.3 Commitments with a condition to convert it to shares after
a balance payment of `0.25/- per share.
58.3.1 Capital Commitments:
(c) The Company entered into an arrangement
a. Estimated amount of contracts remaining
for backstopping support towards
to be executed on capital account:-
repayment of principal and coupon of
i. In respect of the Group: `681,195.87 Compulsory Convertible Debentures
million (as at March 31, 2020: (CCDs) amounting to `77,780.00 million
`643,830.65 million). (Previous year `77,780.00 million) issued
by ONGC Petro additions Limited in three
ii. In respect of Group Share in Joint
tranches. The Company is continuing the
Ventures: `19,584.35 million (as at
back stopping support and the outstanding
698 March 31, 2020: `2,833.41 million).
interest accrued as at March 31, 2021 is
b. Unconditional purchase obligation: `1,926.75 million (Previous year `2,722.77
million).
i. In respect of the Group: `6,407.14
million (as at March 31, 2020: (d) In respect of subsidiary MRPL,
`6,407.14 million).
a. Pending commitment on account of
Refinery - MRPL is in possession of
58.3.2 Other Commitments certain land provisionally measuring
(a) Estimated amount of Minimum Work 36.69 acres ceded by HPCL for use
Programme (MWP) committed under by MRPL Phase III expansion and
various ‘Production Sharing Contracts’ upgradation work .The consideration
 ANNUAL REPORT
2020-21
for such land is mutually agreed to be by way of swapping of land in possession of MRPL/HPCL.
The final documentation in this regard is pending to be executed.
b. Pending commitment on account of Refinery performance improvement programme by M/s.
Shell Global International Solution (M/s. Shell GIS) as at March 31, 2021 US$ 1.46 million net of
advance (As at March 31, 2020 US$ 1.46 million net of advance).

59 Disclosure under Guidance Note on Accounting for “Oil and Gas Producing Activities” (Revised)

59.1 Group’s share of Proved Reserves on the geographical basis is as under:

A. In India

Particulars Details Crude Oil Gas Total Oil Equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,

Consolidated Financial Statements

2021 2020 2021 2020 2021 2020
Opening 180.33 183.00 181.62 198.91 361.95 381.91
Addition 6.88 11.86 10.85 1.98 17.73 13.84
Offshore Production 13.33 14.53 17.28 19.10 30.61 33.63
Changes* - - - 0.17 - 0.17
Closing 173.88 180.33 175.19 181.62 349.07 361.95
Opening 136.89 140.61 121.53 123.08 258.42 263.69
Addition (0.39) 4.67 2.88 4.30 2.49 8.97
Onshore Production 7.80 8.17 5.33 5.58 13.13 13.75
Changes* - (0.22) - (0.27) - (0.49)
Closing 128.70 136.89 119.08 121.53 247.78 258.42
Opening 317.22 323.61 303.15 321.99 620.37 645.60
Addition 6.49 16.53 13.73 6.28 20.22 22.81
Total Production 21.13 22.70 22.61 24.68 43.74 47.38
Changes* - (0.22) - (0.44) - (0.66)
Closing 302.58 317.22 294.27 303.15 596.85 620.37
Refer Note No. 5.2 (e) for procedure of estimation of reserves. 699
 THE UNSTOPPABLE
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B. Outside India

Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
Project Details As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Opening - 6.669 - - - 6.669
Addition - - - - - -
Deduction/ - 6.572 - - - 6.572
GNOP,
Adjustment
Sudan
Change** - - - - - -
Production - 0.097 - - - 0.097
Closing - - - - - -
Opening 6.194 6.843 - - 6.194 6.843
Addition 0.170 - - - 0.170 -
GPOC, Deduction/ - 0.085 - - - 0.085
South Adjustment
Sudan Change** 0.223 - - - 0.223 -
Production 0.714 0.564 - - 0.714 0.564
Closing 5.427 6.194 - - 5.427 6.194
Opening 5.886 5.886 - - 5.886 5.886
Addition - - - - - -
Block 5A, Deduction/ 0.002 - - - 0.002 -
South Adjustment
Sudan Change** 3.306 - - - 3.306 -
Production - - - - - -
Closing 2.578 5.886 - - 2.578 5.886
Opening 32.120 31.082 54.372 52.457 86.492 83.539
Addition 0.073 3.595 - 2.532 0.073 6.127
Deduction/ - 0.002 - - - 0.002
Sakhalin-1,
Adjustment
Russia
Change** - - - - - -
Production 2.442 2.555 - 0.617 2.442 3.172
Closing 29.751 32.120 54.372 54.372 84.123 86.492
700 Opening 0.619 0.630 4.094 5.942 4.713 6.572
Addition - - - - - -
Deduction/ 0.593 - 0.666 - 1.259 -
Block 06.1,
Adjustment
Vietnam
Change** - - - - - -
Production 0.009 0.011 1.321 1.848 1.330 1.859
Closing 0.017 0.619 2.107 4.094 2.124 4.713
Opening 2.581 2.581 - - 2.581 2.581
Addition - - - - - -
Deduction/ - - - - - -
AFPC,
Adjustment
Syria
Change** 2.581 - - - 2.581 -
Production - - - - - -
Closing - 2.581 - - - 2.581
 ANNUAL REPORT
2020-21

Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
Project Details As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Opening 1.230 1.257 0.131 0.166 1.361 1.423
Addition 0.205 0.516 0.011 0.001 0.216 0.517
Deduction/ - 0.001 - 0.001 - 0.002
BC-10,
Adjustment
Brazil
Change** - - - - - -
Production 0.518 0.542 0.037 0.035 0.555 0.577
Closing 0.917 1.230 0.105 0.131 1.022 1.361
Opening 1.197 1.604 - - 1.197 1.604
Addition 0.288 - - - 0.288 -
Deduction/ - 0.001 - - - 0.001

Consolidated Financial Statements

MECL,
Adjustment
Colombia
Change** - - - - - -
Production 0.345 0.406 - - 0.345 0.406
Closing 1.140 1.197 - - 1.140 1.197
Opening 19.954 14.225 2.368 3.853 22.322 18.078
Addition 1.343 5.926 0.415 - 1.758 5.926
Deduction/ - 0.001 - 1.440 - 1.441
IEC,
Adjustment
Russia
Change** - - - - - -
Production 0.164 0.196 0.039 0.045 0.203 0.241
Closing 21.133 19.954 2.744 2.368 23.877 22.322
Opening 1.127 7.937 - - 1.127 7.937
Addition - - - -
Deduction/ - 6.663 - - - 6.663
PIVSA,
Adjustment
Venezuela
Change** - - - - - -
Production 0.043 0.147 - - 0.043 0.147
Closing 1.084 1.127 - - 1.084 1.127
Opening 0.741 4.088 - - 0.741 4.088
Addition - - -
Carabobo Deduction/ 0.314 3.263 - - 0.314 3.263
701
- 1, Adjustment
Venezuela Change** - - - - - -
Production 0.016 0.084 - - 0.016 0.084
Closing 0.411 0.741 - - 0.411 0.741
Opening 1.803 1.803 - - 1.803 1.803
Addition - - - - - -
Deduction/ - - - - - -
Block XXIV,
Adjustment
Syria
Change** 1.803 - - - 1.803 -
Production - - - - - -
Closing - 1.803 - - - 1.803
 THE UNSTOPPABLE
ENERGY SOLDIERS

Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
Project Details As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Opening - - 8.591 9.647 8.591 9.647
Addition - - - - - -
Block-A1 Deduction/ - - - - - -
& A3, Adjustment
Myanmar Change** - - - - - -
Production - - 0.971 1.056 0.971 1.056
Closing - - 7.620 8.591 7.620 8.591
Opening 9.958 9.428 - - 9.958 9.428
Addition - 1.125 - - - 1.125
Deduction/ 1.549 - - - 1.549 -
ACG, Adjustment
Azerbaijan
Change** - - - - - -
Production 0.531 0.595 - - 0.531 0.595
Closing 7.878 9.958 - - 7.878 9.958
Opening 74.555 78.017 26.630 16.288 101.185 94.305
Addition - 0.031 0.364 11.832 0.364 11.863
Deduction/ 17.507 0.001 - 0.001 17.507 0.002
Vankor, Adjustment
Russia
Change** 14.767 - 12.169 - 26.936 -
Production 2.811 3.492 1.385 1.489 4.196 4.981
Closing 39.470 74.555 13.440 26.630 52.910 101.185
Opening 14.105 14.905 - - 14.105 14.905
Addition - - - - - -
Lower Deduction/ - - - - - -
Zakum, Adjustment
Abu Dhabi Change** - - - - - -
702 Production 0.597 0.800 - - 0.597 0.800
Closing 13.508 14.105 - - 13.508 14.105
Opening - 14.905 - - - 14.905
Addition 2.225 - - - 2.225 -
CPO 5 Deduction/ 0.014 - - - 0.014 -
Colombia Adjustment

*** Change** 1.811 - - - 1.811 -

Production 0.320 - - - 0.320 -
Closing 0.080 14.905 - - 0.080 14.905
 ANNUAL REPORT
2020-21

Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
Project Details As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Opening 172.070 186.955 96.186 88.352 268.256 275.307
Addition 4.304 11.193 0.790 14.365 5.094 25.558
Deduction/ 19.979 16.589 0.666 1.441 20.645 18.030
Total Adjustment
Reserves Change** 24.491 - 12.169 - 36.660 -
Production 8.510 9.489 3.753 5.090 12.263 14.579
123.394 172.070 80.388 96.186 203.782 268.256
Closing

Consolidated Financial Statements

59.2 Group’s share of Proved Developed Reserves on the geographical basis is as under:
A. In India

Particulars Details
Crude Oil Gas Total Oil Equivalent
(MMT) (Billion Cubic Meter) (MMTOE)#

As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020

Opening 144.23 130.29 128.50 145.00 272.73 275.29

Addition 3.40 28.47 7.55 2.59 10.95 31.06

Offshore Production 13.33 14.53 17.28 19.09 30.61 33.62

Changes* - - - - - -

Closing 134.30 144.23 118.77 128.50 253.07 272.73

Opening 72.18 103.49 42.78 74.50 114.96 177.99

Addition 1.71 (22.92) 4.88 (25.87) 6.59 (48.79)

Onshore Production 7.80 8.17 5.33 5.59 13.13 13.76 703
Changes* - (0.22) - (0.26) - 0.48

Closing 66.09 72.18 42.33 42.78 108.42 114.96

Opening 216.41 233.78 171.28 219.50 387.69 453.28

Addition 5.11 5.55 12.43 (23.28) 17.54 (17.73)

Production 21.13 22.70 22.61 24.68 43.74 47.38

Total
Changes* - (0.22) - (0.26) - (0.48)

Closing 200.39 216.41 161.10 171.28 361.49 387.69

 THE UNSTOPPABLE
ENERGY SOLDIERS
A. Outside India

Project Details Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
GNOP, Opening - 1.341 - - - 1.341
Sudan Addition - - - - - -
Deduction/ - 1.244 - - - 1.244
Adjustment
Change** - - - - - -
Production - 0.097 - - - 0.097
Closing - - - - - -
GPOC, Opening 3.323 3.884 - - 3.323 3.884
South Addition 0.102 0.003 - - 0.102 0.003
Sudan Deduction/ - - - - - -
Adjustment
Change** - - - - - -
Production 0.714 0.564 - - 0.714 0.564
Closing 2.711 3.323 - - 2.711 3.323
Block 5A, Opening 2.565 2.565 - - 2.565 2.565
South Addition 0.002 - - - 0.002 -
Sudan Deduction/ - - - - - -
Adjustment
Change** 1.060 - - - 1.060 -
Production - - - - - -
Closing 1.507 2.565 - - 1.507 2.565
Sakhalin-1, Opening 18.466 15.192 29.154 28.479 47.619 43.670
Russia Addition - 5.830 - 1.293 - 7.123
Deduction/ 2.720 0.001 - 0.001 2.720 0.002
Adjustment
Change** - - - - - -
Production 2.442 2.555 - 0.617 2.442 3.172
Closing 13.304 18.466 29.154 29.154 42.457 47.619
704 Block 06.1, Opening 0.619 0.630 4.094 5.942 4.713 6.572
Vietnam Addition - - - - - -
Deduction/ 0.593 - 0.666 - 1.259 -
Adjustment
Change** - - - - - -
Production 0.009 0.011 1.321 1.848 1.330 1.859
Closing 0.017 0.619 2.107 4.094 2.124 4.713
AFPC, Opening 2.206 2.206 - - 2.206 2.206
Syria Addition - - - - - -
Deduction/ - - - - - -
Adjustment
Change** 2.206 - - - 2.206 -
Production - - - - - -
Closing - 2.206 - - - 2.206
 ANNUAL REPORT
2020-21

Project Details Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
BC-10, Opening 1.142 1.257 0.125 0.166 1.267 1.423
Brazil Addition 0.293 0.428 0.017 0.310 0.428
Deduction/ - 0.001 - 0.006 - 0.007
Adjustment
Change** - - - - - -
Production 0.518 0.542 0.037 0.035 0.555 0.577
Closing 0.917 1.142 0.105 0.125 1.022 1.267
MECL, Opening 0.822 1.229 - - 0.822 1.229
Colombia Addition 0.153 - - - 0.153 -
Deduction/ - 0.001 - - - 0.001

Consolidated Financial Statements

Adjustment
Change** - -
Production 0.345 0.406 - - 0.345 0.406
Closing 0.630 0.822 - - 0.630 0.822
IEC, Opening 5.700 4.470 0.691 1.012 6.391 5.482
Russia Addition 0.633 1.426 0.075 - 0.708 1.426
Deduction/ - - - 0.276 - 0.276
Adjustment
Change** - - - - - -
Production 0.164 0.196 0.039 0.045 0.203 0.241
Closing 6.169 5.700 0.727 0.691 6.896 6.391
PIVSA, Opening 1.127 0.665 - - 1.127 0.665
Venezuela Addition - 0.610 - - - 0.610
Deduction/ - 0.001 - - - 0.001
Adjustment
Change** - - - - - -
Production 0.043 0.147 - - 0.043 0.147
Closing 1.084 1.127 - - 1.084 1.127
Carabobo Opening 0.741 1.925 - - 0.741 1.925
- 1, Addition - - - - - -
Venezuela Deduction/ 0.314 1.100 - - 0.314 1.100
705
Adjustment
Change** - - - - - -
Production 0.016 0.084 - - 0.016 0.084
Closing 0.411 0.741 - - 0.411 0.741
Block XXIV, Opening 0.049 0.049 - - 0.049 0.049
Syria Addition - - - - - -
Deduction/ - - - - - -
Adjustment
Change** 0.049 - - - 0.049 -
Production - - - - - -
Closing - 0.049 - - - 0.049
 THE UNSTOPPABLE
ENERGY SOLDIERS

Project Details Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Block-A1 Opening - - 2.976 4.032 2.976 4.032
& A3, Addition - - - - - -
Myanmar Deduction/ - - - - - -
Adjustment
Change** - - - - - -
Production - - 0.971 1.056 0.971 1.056
Closing - - 2.005 2.976 2.005 2.976
ACG, Opening 8.577 9.081 - - 8.577 9.081
Azerbaijan Addition - 0.091 - - - 0.091
Deduction/ 4.275 - - - 4.275 -
Adjustment
Change** - - - - - -
Production 0.531 0.595 - - 0.531 0.595
Closing 3.771 8.577 - - 3.771 8.577
Vankor, Opening 67.122 70.599 13.642 14.722 80.764 85.321
Russia Addition - 0.016 0.539 0.410 0.539 0.426
Deduction/ 35.717 0.001 - 0.001 35.717 0.002
Adjustment
Change** 12.629 - 3.434 - 16.063 -
Production 2.811 3.492 1.385 1.489 4.196 4.981
Closing 15.965 67.122 9.362 13.642 25.327 80.764
Lower Opening 10.645 11.445 - - 10.645 11.445
Zakum, Addition - - - - - -
Abu Dhabi Deduction/ - - - - - -
Adjustment
Change** - - - - - -
Production 0.597 0.800 - - 0.597 0.800
Closing 10.048 10.645 - - 10.048 10.645
Opening - - - - - -
Addition 2.225 - - - 2.225 -
706 CPO 5 Deduction/ 0.014 - - - 0.014 -
Colombia Adjustment
*** Change** 1.811 - - - 1.811 -
Production 0.320 - - - 0.320 -
Closing 0.080 - - - 0.080 -
 ANNUAL REPORT
2020-21

Project Details Crude oil^ Gas Total oil equivalent

(MMT) (Billion Cubic Meter) (MMTOE)#
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Total Opening 123.104 126.538 50.682 54.353 173.785 180.890
Reserves Addition 3.408 8.404 0.631 1.703 4.039 10.107
Deduction/ 43.633 2.349 0.666 0.284 44.299 2.633
Adjustment
Change** 17.755 - 3.434 - 21.189 -
Production 8.510 9.489 3.753 5.090 12.263 14.579
Closing 56.614 123.104 43.460 50.682 100.073 173.785
^ Crude oil includes Condensate.
# MMTOE denotes “Million Metric Tonne Oil Equivalent” and for calculating Oil equivalent of Gas, 1000

Consolidated Financial Statements

M3 of Gas has been taken to be equal to 1 MT of Crude Oil.
In respect of company, crude oil production includes wellhead condensate
*The changes shown above are due Discovered Small Field (DSF) Bid Round – II (2018).
** In respect of subsidiary OVL, the changes shown above are due to migration from classification of
Reserves under SPE-1997 guidelines to Petroleum Resource Management System (PRMS) during the
financial year. As a result of the change, there is an increase in depletion by `836.73 million and further
the Share of profit of equity accounted investees, net of tax is decreased by `1,290.87 million during the
year. The amount of the effect in the future years is not disclosed because estimating it is impracticable.
*** In respect of subsidiary OVL, w.e.f. 8th May 2020, the block CPO5 has moved to Production Phase
consequent to obtaining the Global Environmental License from regulatory authorities. Accordingly, the
total production of the block has been considered, however, the closing reserves relate to only one field
of the block.
Variations in totals, if any, are due to internal summations and rounding off.
In respect of subsidiary OVL,
Due to non activity in Block 5A, South Sudan, AFPC, Syria and Block XXIV, Syria, there is no change in
reserve status as per REC report.
The company engaged M/s DeGolyer & McNaughton (D&M) to Audit its Reserves as of 1st April, 2019
on PRMS basis. D&M audited the company’s reserves base of more than 90% and submitted final report
in September 2020. All aspects of the above audit report was considered by the Reserve estimation
committee while approving the reserves as on 01.04.2021. 707
60 Subsidiary OMPL operates in special economic zone (SEZ) in Mangalore, accordingly is eligible for
certain economic benefits such as exemptions from GST, custom duty, excise duty, service tax , value
added tax, entry tax, etc. which are in the nature of government assistance. These benefits are subject
to fulfillment of certain obligations by the Company.
61 The Board had accorded consent for amalgamation of the subsidiary ONGC Mangalore Petrochemicals
Limited with the Mangalore Refinery and Petrochemicals Limited (MRPL), subject to necessary approvals.
The Company had received “No Objection” vide letter dated April 18, 2018 from Ministry of Petroleum
& Natural Gas. No effect is considered towards the same in the financial statements.Subsequently, the
Board of subsidiary MRPL, has approved the amalgamation of its wholly owned subsidiary, OMPL on
June 10th, 2021.
 THE UNSTOPPABLE
ENERGY SOLDIERS
62 During the previous year, subsidiary ONGC Videsh Limited has transferred the Mozambique business to
a incorporated subsidiary of the company w.e.f. January 1, 2020. As this is a common control business
combination transaction, there was no impact on the consolidated financial statements of the company.
63 In respect of subsidiary OVL, the Company’s share in the assets, liabilities & expenses of overseas joint
operations are accounted for on line by line basis with the similar items in the financial statements of
the Company based on Joint Interest Billings (JIB) received from overseas operators. JIBs for the major
overseas joint operations are audited by local auditors with a limited scope, however, in certain cases
the assets, liabilities & expenses are accounted on the basis on Unaudited JIBs (refer Note No. 53.2.1)
64 Disclosure as per Ind AS 8 - ‘Accounting Policies, Changes in Accounting Estimates and Errors’
and Ind AS 1 ‘Presentation of Financial Statements’.
64.1 In accordance with Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and Ind
AS 1 ‘Presentation of Financial Statements’, the group has retrospectively restated its Balance Sheet
as at March 31, 2020 and April 1, 2019 (beginning of the previous year) and Statement of Profit and
Loss for the year ended March 31, 2020 for the reasons as stated below.
64.1.1 During the year opinion of Expert Advisory Committee (EAC) of the Institute of Chartered Accountants
of India was taken by the Company’s Step down Subsidiary ONGC Mangalore Petrochemicals Limited
(OMPL) on treatment of Compulsory Convertible Debentures (CCDs) issued by it amounting to `10,000
million in their financial statements. Company and subsidiary MRPL are sponsors of the CCDs according
to their respective shareholding on the date of issue of CCDs i.e. 49% by the Company and 51% by
MRPL. According to the terms of issue the sponsors are mandatorily required to buy out the outstanding
debentures and interest, if any. Further, Subsidiary Mangalore Refinery and Petrochemicals Limited
(MRPL) also sought opinion of EAC on treatment of Compulsory Convertible Debentures (CCDs) issued
by Step down Subsidiary OMPL in its Stanalone and Consolidated Financial Statements.
Based on the EAC opinion, OMPL has recognized the entire amount of CCDs as financial liability as
against the earlier treatment of recognizing CCDs as Compound Financial Instrument, resulting in
derecognition of equity part of CCDs as financial liability. Further, based on EAC opinion, the Company
& its Subsidary MRPL, in their standalone financial statements recognized a financial liability at fair
value for their respective share of backstopping support towards repayment of principal and a financial
guarantee obligation towards coupon amount with a corresponding recognition of Deemed Investment
in its stepdown Subsidiary OMPL. However, being a trasaction with Subsidary, the same have been
eliminated in the Consolidated Financial statements of the Company.
Similarly, the Company has also entered into an arrangement for backstopping support towards
repayment of principal and coupon of Compulsory Convertible Debentures (CCDs) amounting to
`77,780.00 million issued by the Company’s Joint Venture ONGC Petro additions Limited (OPaL) in
three tranches which were also shown under Commitments in financial statements. Based on the
708 aforesaid EAC opinion, the principal portion of the CCDs have also been recognized as financial liability
at fair value and a financial guarantee obligation has been recognized towards coupon amount with a
corresponding recognition of Deemed Investment in Joint Venture OPaL.
The aforesaid adjustments related to CCDs have been accounted retrospectively as per the requirements
of Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’.
64.1.2 OVL in its Consolidated Financial Statement presented the Deemed Capital Contribution, pertaining to
the Non Controlling interest of Beas Rovuma Energy Mozambique Limited, as the company’s Deemed
Capital Contribution upto the year ended March 31, 2020. During the year, OVL has reassessed
such presentation, and has reclassified the Deemed Capital Contribution that is owned by the Non
Controlling interest. This has no impact in the statement of Profit and Loss on account of such change
in reclassification.
The Reconciliation of financial statement line items which are retrospectively restated are as under:
64.2 Reconciliation of restated items of Balance Sheet as at March 31, 2020 and April 01, 2019:
(` in million)

As at March 31, 2020 As at April 01, 2019

Note
Particulars No. As
As previously
64.5 previously Adjustment As restated Adjustment As restated
reported
reported

Investment in Joint Venture and

1,2 292,372.75 61,148.99 353,521.74 330,490.84 62,347.47 392,838.31
Associates

Deferred tax assets 2 26,656.79 18.16 26,674.95 17,310.58 - 17,310.58

Others 10* 4,719,951.16 28.29 4,719,979.45 4,584,788.68 - 4,584,788.68

Total assets 5,038,980.70 61,195.44 5,100,176.14 4,932,590.10 62,347.47 4,994,937.57

Other equity 1,2 2,006,775.42 (18,630.93) 1,988,144.49 2,106,445.00 (14,296.68) 2,092,148.32

Non Controlling Interest 1,2 178,128.12 5,929.27 184,057.39 181,062.10 1,672.41 182,734.51

Non Current Borrowings 3 720,833.99 8,481.78 729,315.77 521,679.62 - 521,679.62

Other Non-Current financial

liabilities 1,3 14,759.82 (7,740.68) 7,019.14 8,352.68 19,876.52 28,229.20

Deferred tax liabilities 2 461,381.88 (961.74) 460,420.14 467,220.54 - 467,220.54

Current Borrowings 3 315,745.21 (688.87) 315,056.34 493,323.02 - 493,323.02

Other Current financial liabilities 1,2,10* 469,505.13 73,541.38 543,046.51 369,206.96 55,095.22 424,302.18

Others 10* 871,851.13 1,265.23 873,116.36 785,300.18 - 785,300.18

ANNUAL REPORT
Total equity and liabilities 5,038,980.70 61,195.44 5,100,176.14 4,932,590.10 62,347.47 4,994,937.57

* Note 64.5.10 relates to the reclassification/regrouping done by subsidiaries.

2020-21
709

Consolidated Financial Statements

 THE UNSTOPPABLE
ENERGY SOLDIERS
64.3 Reconciliation of restated items of Statement of Profit and Loss for the year ended March 31, 2020
(` in million)
Note
As previously
Particulars No. Adjustment As restated
reported
64.5
Revenue From Operations 10* 4,250,014.18 (403.43) 4,249,610.75
Other income 4,10* 85,315.45 5,454.77 90,770.22
Finance Cost 3,4 69,997.73 4,895.66 74,893.39
Total tax expense 5 75,080.02 (18.16) 75,061.86
Share of profit of Joint Ventures 2,7 (13,015.39) (1,212.73) (14,228.12)
Profit for the year 8 115,601.48 (1,038.89) 114,562.59
Total comprehensive income for the year 6,7,8 (3,420.25) (4,337.33) (7,757.58)
Earning Per Share
Basic and diluted (in `) 8 8.67 (0.08) 8.59
* Note 64.5.10 relates to the reclassification/regrouping done by subsidiaries.
64.4 Reconciliation of restated items of Cash Flows for the year ended March 31, 2020
(` in million)
Note No. As previously
Particulars Adjustment As restated
64.5 reported
Net Profit after tax 8 115,601.48 (1,038.89) 114,562.59
Income Tax 5 75,080.02 (18.16) 75,061.86
Share of profit of joint ventures and associates 2,7 (10,544.18) 1,212.73 (9,331.45)
Finance Cost 3,4 69,997.73 4,895.66 74,893.39
Unrealised Foreign exchange loss 9 35,725.85 (2,648.74) 33,077.11
Gain on revaluation of financial liability towards
CCDs 4 - (5,038.27) (5,038.27)
Amortization of Financial Guarantee 4 305.43 (13.07) 292.36
(Increase)/ Decrease in Other Assets 9 (33,722.71) 1,902.42 (31,820.29)
Increase/ (Decrease) in Trade Payables and Other
710 Liabilities 9 70,161.51 (8,552.79) 61,608.72
Direct Taxes Paid (Net of tax refund) 9 (99,053.69) (1,114.89) (100,168.58)
Other Items 492,792.34 - 492,792.34
Net Cash generated from Operating Activities ‘A’ 9 716,343.78 (10,414.00) 705,929.78
Net Cash used in Investing Activities ‘B’ (534,983.14) - (534,983.14)
Proceeds/(Repayment) of borrowings 9 16,320.56 7,792.65 24,113.21
Interest Paid 9 (37,701.52) 2,621.35 (35,080.17)
Other Items (156,296.68) - (156,296.68)
Net Cash used in Financing Activities ‘C’ 9 (177,677.64) 10,414.00 (167,263.64)
Net increase/(decrease) in Cash and Cash
Equivalents (A+B+C) 3,683.00 - 3,683.00
 ANNUAL REPORT
2020-21
Notes
64.5.1 The retrospective restatement of the financial statement for the year ended March 31, 2020 as per Note
No 64.1.1, has resulted in recognition of Deemed Investment in Joint Venture OPaL by `62,347.47
million, recognition of Financial liability for CCDs by `74,964.80 million (`55,089.40 million as Current
and `19,875.40 million as Non current) and Financial guarantee obligation of `6.94 million (`5.82 million
as Current and `1.12 million as Non current) as at April 1, 2019. This has resulted in total decrease in
other equity by `12,624.27 million as at April 1, 2019.
The retrospective restatement of the financial statement for the year ended March 31, 2020 as per Note
No 64.1.2, has resulted in reclassification of other equity to non controlling interest by `1,672.41 million
as at April 01, 2019.
64.5.2 The retrospective restatement of the financial statement for the year ended March 31,2020 as per
Note No 64.1.1, resulted in recognition of Deemed Investment in Joint Venture OPaL by `62,361.96
million, recognition of Financial liability for CCDs by `74,769.96 million (current `74,769.96 million) and
Financial guarantee obligation of `8.36 million (Current `8.36 million). It has also resulted in recognition
of deferred tax assets by `18.16 million due to dercognition of CCDs as equity by step down subsidiary

Consolidated Financial Statements

OMPL.
Further, consequent upon recognition of Deemed Investment in Joint Venture OPaL as stated at Note
No. 64.1.1, the share of loss in OPaL amounting to `1,212.97 million has been additionally recognized
during year ended March 31, 2020 on account of equity accounting.
This has resulted in increase in Investment in Joint Ventures and Associates by `61,148.99 million and
decrease in other equity by `13,660.33 million and non controlling interest by `3.07 million for the year
ended March 31, 2020. No deferred tax has been created against the deemed investments as based
on information available it is not probable that the temporary difference towards the same will reverse
in the foreseeable future.
The retrospective restatement of the financial statement for the year ended March 31, 2020 as per Note
No 64.1.2, has resulted in decrease in other equity by `4,970.60 million and deferred tax liability by
`961.74 million. This has resulted in the total increase of non controlling interest by `5,932.34 million.
64.5.3 The retrospective restatement of the financial statement for the year ended March 31, 2020 as per Note
No 64.1.1, has resulted in reclassification of current borrowings of `688.87 million and other non current
financial liabilities of `7,740.68 million recognized w.r.t CCD issued by subsidiary OMPL to non current
borrowings. Further, change in treatment of interest pay-out with respect to CCD issued by OMPL has
resulted in recognition of additional finance cost of `52.23 million. This has resulted in total increase in
non current borrowings by `8,481.78 million for the year ended March 31, 2020.
64.5.4 The retrospective restatement of the financial statement for the year ended March 31, 2020 as per
Note No 64.1.1, has resulted increase in finance cost by `4,843.43 million due to unwinding of financial 711
liabilities for CCDs and increase in Other income by `5,051.34 million on account of Gain on revaluation
of financial liability due to extensions of CCDs by `5,038.27 million & amortization of financial guarantee
by `13.07 million.
64.5.5 There is a reduction in the tax expenses by `18.16 million due to dercognition of CCDs as equity by step
down subsidiary OMPL in the Previous year 2019-20.
64.5.6 The retrospective restatement of the financial statement for the year ended March 31, 2020 as per Note
No 64.1.2, has resulted in decrease of other comprehensive income w.r.t. ‘Exchange differences in
translating the financials statements of foreign operations’ by `3,298.20 million (Net of Tax Impact).
64.5.7 There is an increase in Share of profit of Joint Ventures and reduction in other comprehensive income
by `0.24 million due to reclassification on account effective portion of gains/ (Losses) on hedging
instrument in Cash Flow Hedges.
 THE UNSTOPPABLE
ENERGY SOLDIERS
64.5.8 Consequent to aforesaid adjustments, there is a decrease in consolidated profit after tax by `1,038.89
million, decrease in consolidated total Other Comprehensive Income by `4,337.33 million. There is a
decrease in Consolidated Earning Per Share from `8.67 per share to `8.59 per share.
64.5.9 The retrospective restatement of the financial statement for the year ended March 31, 2020 as per Note
No. 64.1.1, has resulted in reclassification of cash generated from operations of `10,414.00 million to
cash generated from financing activities. There is no impact on net cash used in investing activities and
the net increase/(decrease) in cash and cash equivalents.
64.5.10 The changes in the other items of financial statements for the year March 31, 2020 pertains to the
reclassification/regrouping done by the subsidiary companies. There is a decrease in other current
financial liabilities by `1,236.94 million due to reclassification to other current liabilities. Also, there is
reduction in Revenue from Operations by `403.43 million due to reclassification to other income.
65 Pursuant to completion of tenure in Office & consequential cessation of Independent Directors, the
number of Independent Directors on the Board has got reduced to one (1) w.e.f. September 08, 2020
and there is no woman Independent Director on the Board. This position has been continuing even as
on the date of approval of Financial Statements for the year ended March 31, 2021. The requirement for
filling up the vacancies for Independent Directors on the Board for compliance of the provisions of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations,
2015 (Listing Regulations), DPE Guidelines and the Companies Act, 2013 has been taken up with the
Government of India from time to time.
As per the provisions of the Listing Regulations, DPE Guidelines and the Companies Act, 2013, at
least two independent directors are required for constituting valid quorum of the Audit Committee, as
a result, no Audit Committee meeting could be held after September 08, 2020. In absence of the audit
committee meetings since September 08, 2020, the functions of audit committee were taken up in the
meeting of the Board of Directors. Accordingly, the Financial Statements for the year ended March 31,
2021 have been directly reviewed and approved by the Board of Directors.
66 The Group has a system of physical verification of Inventory, Property, Plant & Equipment and Capital
Stores in a phased manner to cover all items. Adjustment differences, if any, are carried out on completion
of reconciliation.
67 The Group did not have any long term contracts including derivative contracts for which there were any
material foreseeable losses.
68 The Figures in respect of the company, Subsidiaries/Joint Venture and Associates Companies have been
regrouped/ rearranged based upon the details obtained from the management as part of consolidation
process, Audited/unaudited accounts of respective group companies. Further some balances of Trade
and other receivables Trade and other payables and Loans & Advances are subject to confirmation/
reconciliation. Adjustments, if any, will be accounted for on confirmation / reconciliation of the same
712 which will not have a material impact.
69 Previous year’s figures have been regrouped, wherever necessary, to confirm to current year’s grouping.
70 Additional disclosure under Schedule-III
70.1 Schedule-III additional disclosure in Consolidated Financial Statements as on March 31, 2021
(` in million)
Sl. Name of the entity Country of Net Asset, i.e., total assets Share in profit or loss Share in other Share in total
No. in the group incorporation minus total liabilities comprehensive income comprehensive income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
A Parent
A.1 ONGC India 48.85 1,185,003.40 21.08 44,989.97 126.06 23,506.14 29.51 68,496.11

B Subsidiaries
(Group’s share)
B.1 Indian
B.1.1 ONGC Videsh India 8.58 208,112.67 3.66 7,816.72 (38.37) (7,155.58) 0.28 661.14
Limited (OVL)
B.1.2 Hindustan Petroleum India 11.77 285,425.75 49.01 104,610.04 0.76 141.52 45.14 104,751.56
Corporation Limited
(HPCL)
B.1.3 Mangalore Refinery India 2.04 49,494.72 (0.53) (1,121.88) 0.11 19.98 (0.47) (1,101.90)
and Petrochemicals
Ltd. (MRPL)
B.1.4 ONGC Mangalore India (0.30) (7,267.01) (2.14) (4,557.25) 0.00 0.89 (1.96) (4,556.36)
Petrochemicals Ltd.
(OMPL)
B.1.5 Petronet MHB Ltd India 0.25 6,070.53 0.24 518.12 (0.00) (0.12) 0.22 518.00
(PMHBL)
B.1.6 Prize Petroleum India (0.13) (3,212.60) (0.13) (278.20) 0.80 149.10 (0.06) (129.10)
Company Ltd.
B.1.7 HPCL Biofuels Ltd. India 0.11 2,658.60 (0.38) (800.70) 0.00 0.80 (0.34) (799.90)

ANNUAL REPORT
B.1.8 HPCL Shapoorji India 0.48 11,596.90 (0.02) (40.20) - - (0.02) (40.20)
Energy Pvt. Ltd.
B.1.9 ONGC Videsh India 1.22 29,503.98 2.42 5,159.58 - 2.22 5,159.58
Rovuma Ltd., India
B.2 Foreign
B.2.1 ONGC Nile Ganga The 1.60 38,826.66 3.72 7,938.05 - - 3.42 7,938.05
B.V. (ONGBV) Netherlands

2020-21
B.2.2 ONGC Campos Ltda. Brazil 0.53 12,737.31 (0.30) (649.80) - - (0.28) (649.80)
713

Consolidated Financial Statements

 714
Sl. Name of the entity Country of Net Asset, i.e., total assets Share in profit or loss Share in other Share in total

ENERGY SOLDIERS
THE UNSTOPPABLE
No. in the group incorporation minus total liabilities comprehensive income comprehensive income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
B.2.3 ONGC Nile Ganga The 1.41 34,254.36 (0.02) (39.84) - - (0.02) (39.84)
(San Cristobal) B.V. Netherlands
B.2.4 ONGC Narmada Nigeria (0.10) (2,338.03) 0.00 0.01 - 0.00 0.01
Limited (ONL)
B.2.5 ONGC Amazon Bermuda 0.00 12.62 0.01 24.03 - - 0.01 24.03
Alaknanda Limited
(OAAL)
B.2.6 Imperial Energy Cyprus 0.76 18,504.28 0.23 500.56 - - 0.22 500.56
Limited
B.2.7 Imperial Energy Cyprus (0.00) (105.90) (0.00) (6.97) - - (0.00) (6.97)
Tomsk Limited
B.2.8 Imperial Energy Cyprus (0.11) (2,695.01) (0.00) (6.64) - - (0.00) (6.64)
(Cyprus) Limited
B.2.9 Imperial Energy Nord Cyprus (0.46) (11,193.14) (0.00) (6.44) - - (0.00) (6.44)
Limited
B.2.10 Biancus Holdings Cyprus (0.01) (302.56) 0.04 95.25 - - 0.04 95.25
Limited
B.2.11 Redcliffe Holdings Cyprus (0.03) (660.52) (0.00) (6.65) - - (0.00) (6.65)
Limited
B.2.12 Imperial Frac Cyprus (0.00) (13.74) 0.00 0.14 - - 0.00 0.14
Services (Cyprus)
Limited
B.2.13 San Agio Investments Cyprus (0.00) (30.44) (0.11) (225.20) - - (0.10) (225.20)
Limited
B.2.14 LLC Sibinterneft Russia (0.00) (108.73) 0.01 19.48 - - 0.01 19.48
B.2.15 LLC Allianceneftegaz Russia (0.03) (736.98) (3.11) (6,629.25) - - (2.86) (6,629.25)
B.2.16 LLC Nord Imperial Russia (0.09) (2,134.67) (1.09) (2,332.49) - - (1.01) (2,332.49)
B.2.17 LLC Rus Imperial Russia (0.00) (121.28) (0.13) (267.80) - - (0.12) (267.80)
Group
B.2.18 LLC Imperial Frac Russia 0.00 30.59 (0.02) (50.59) - - (0.02) (50.59)
Services
B.2.19 Carabobo One AB Sweden (0.02) (493.18) (0.00) (7.20) - - (0.00) (7.20)
B.2.20 Petro Carabobo The (0.02) (454.18) (0.11) (239.24) - - (0.10) (239.24)
Ganga B.V. Netherlands
 Sl. Name of the entity Country of Net Asset, i.e., total assets Share in profit or loss Share in other Share in total
No. in the group incorporation minus total liabilities comprehensive income comprehensive income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
B.2.21 ONGC (BTC) Ltd Cayman (0.02) (374.06) 0.04 88.69 - - 0.04 88.69
Islands
B.2.22 Beas Rovuma Energy Republic of 3.19 77,489.22 (0.07) (142.77) - - (0.06) (142.77)
Mozambique Ltd Mauritius
B.2.23 ONGC Videsh Texas (0.00) (86.74) (0.09) (185.76) - - (0.08) (185.76)
Atlantic Inc.
B.2.24 ONGC Videsh Singapore (4.33) (105,029.51) 0.08 178.50 - - 0.08 178.50
Singapore Pte. Ltd.
B.2.25 ONGC Videsh Singapore 1.05 25,425.67 0.37 789.67 - - 0.34 789.67
Vankorneft Pte. Ltd.
B.2.26 Indus East Israel (0.00) (19.61) (0.00) (2.27) - - (0.00) (2.27)
Mediterranean
Exploration Ltd.
B.2.27 HPCL Middle East Dubai 0.00 45.10 (0.00) (5.70) (0.01) (1.30) (0.00) (7.00)
FZCO
C Non controlling 8.91 216,157.99 23.87 50,947.58 4.04 753.01 22.28 51,700.59
interest in all
subsidiaries
D Associates
(Investments as per
the equity method)
D.1 Indian
D.1.1 Pawan Hans Ltd. India 0.20 4,833.43 (0.02) (45.35) (0.08) (15.59) (0.03) (60.94)
(PHL)
D.1.2 Petronet LNG Limited India 0.61 14,758.63 0.27 586.83 (0.01) (2.64) 0.25 584.19
(PLL)
D.1.3 Rohini Heliport India - - (0.00) (0.05) - - (0.00) (0.05)
Limited (RHL)

ANNUAL REPORT
D.1.4 GSPL India Gasnet India 0.07 1,706.10 0.01 17.80 0.00 0.20 0.01 18.00
Ltd.
D.1.5 GSPL India Transco India 0.02 529.70 (0.03) (71.60) 0.00 0.10 (0.03) (71.50)
Ltd.
D.2 Foreign -
D.2.1 Petro Carabobo S.A. Venezuela 0.18 4,281.84 (0.02) (50.93) - - (0.02) (50.93)

2020-21
715

Consolidated Financial Statements

 716
Sl. Name of the entity Country of Net Asset, i.e., total assets Share in profit or loss Share in other Share in total

ENERGY SOLDIERS
THE UNSTOPPABLE
No. in the group incorporation minus total liabilities comprehensive income comprehensive income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
D.2.2 Carabobo Ingeniería Venezuela 0.00 0.31 - - - - - -
y Construcciones,
S.A.
D.2.3 South-East Asia Gas Hongkong 0.07 1,776.07 0.48 1,032.02 - - 0.44 1,032.02
Pipeline Company
Limited
D.2.4 Tamba B.V. The 0.34 8,181.63 0.18 392.39 - - 0.17 392.39
Netherlands
D.2.5 JSC Vankorneft Russia 4.32 104,915.26 3.07 6,561.88 - - 2.83 6,561.88
D.2.6 Petrolera Venezuela 1.23 29,872.15 (0.20) (417.84) - - (0.18) (417.84)
Indovenezolana S.A.
D.2.7 Falcon Oil & Gas B.V The 0.82 19,822.55 0.30 644.38 - - 0.28 644.38
Netherlands
D.2.8 Moz LNG1 Holding Abudhabi 0.12 2,935.12 0.01 17.87 - - 0.01 17.87
Co. Ltd.
Joint Ventures
(Investments as per
the equity method)
E.1 Indian
E.1.1 Indradhanush Gas India 0.02 579.20 0.00 4.07 - - 0.00 4.07
Grid Ltd. (IGGL)
E.1.2 Mangalore SEZ Ltd India 0.00 32.11 (0.04) (86.21) 0.00 0.23 (0.04) (85.98)
(MSEZ)
E.1.3 ONGC Petro India 2.62 63,665.75 (2.01) (4,279.49) 0.03 5.99 (1.84) (4,273.50)
Additions Ltd. (OPaL)
E.1.4 ONGC Tripura Power India 0.29 7,062.32 0.33 711.89 0.00 0.56 0.31 712.45
Company Ltd.(
OTPC)
E.1.5 ONGC Teri Biotech India 0.01 356.26 0.02 44.08 (0.00) (0.01) 0.02 44.07
Ltd. (OTBL)
E.1.6 Dahej SEZ Limited India 0.05 1,094.75 0.08 179.52 - - 0.08 179.52
(DSEZ)
E.1.7 Hindustan Colas Pvt. India 0.09 2,134.10 0.36 774.90 (0.00) (0.40) 0.33 774.50
Ltd.
 Sl. Name of the entity Country of Net Asset, i.e., total assets Share in profit or loss Share in other Share in total
No. in the group incorporation minus total liabilities comprehensive income comprehensive income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
E.1.8 HPOIL Gas Pvt. Ltd. India 0.03 699.40 (0.00) (9.30) - - (0.00) (9.30)
E.1.9 HPCL Rajasthan India 0.71 17,272.50 (0.29) (619.70) - - (0.27) (619.70)
Refinery Ltd.
E.1.10 South Asia LPG Co. India 0.05 1,103.40 0.30 645.20 0.00 0.70 0.28 645.90
Pvt. Ltd.
E.1.11 HPCL - Mittal Energy India 2.15 52,278.60 0.93 1,977.10 6.67 1,243.70 1.39 3,220.80
Ltd.
E.1.12 Godavari Gas Pvt India 0.01 137.00 (0.01) (12.30) - - (0.01) (12.30)
Ltd.
E.1.13 Petronet India Ltd. India 0.00 4.30 0.00 0.10 - - 0.00 0.10
E.1.14 Mumbai Aviation India 0.04 872.40 0.00 3.90 - - 0.00 3.90
Fuel Farm Facilities
Pvt. Ltd.
E.1.15 Aavantika Gas Ltd. India 0.06 1,365.70 0.10 214.00 - - 0.09 214.00
E.1.16 Bhagyanagar Gas India 0.07 1,725.10 0.12 251.60 (0.00) (0.10) 0.11 251.50
Ltd.
E.1.17 Ratnagiri Refinery & India 0.01 319.10 (0.02) (43.60) - - (0.02) (43.60)
Petrochemical Ltd.
E.1.18 IHB Pvt. Ltd. India 0.17 4,147.50 0.01 15.60 - - 0.01 15.60
E.1.19 Shell MRPL Aviation India 0.01 253.30 0.00 4.00 0.00 0.01 0.00 4.01
Fuels & Services Pvt.
Limited (SMASL)
(through MRPL)
E.2 Foreign
E.2.1 Himalaya Energy The 0.01 216.40 (0.00) (5.37) - - (0.00) (5.37)
(Syria) B.V. Netherlands
E.2.2 Mansarovar Energy Bermuda 0.54 13,063.43 (0.50) (1,076.48) - - (0.46) (1,076.48)

ANNUAL REPORT
Colombia Ltd.

Total 100.00 2,425,967.88 100.00 213,434.46 100.00 18,647.18 100.00 232,081.64

2020-21
717

Consolidated Financial Statements

 718
70.2 Schedule-III additional disclosure in Consolidated Financial Statements as on March 31, 2020

ENERGY SOLDIERS
THE UNSTOPPABLE
(` in million)
Sl. Name of the entity in Country of Net Asset, i.e., total Share in profit or loss Share in other Share in total
No. the group incorporation assets minus total comprehensive income comprehensive income
liabilities
As % of Amount As % of Amount As % of con- Amount As % of con- Amount
consoli- consolidated solidated solidated
dated net profit or loss other com- total com-
assets prehensive prehensive
income income
A Parent
A.1 ONGC India 48.64 1,087,128.98 103.37 118,429.06 99.27 (121,421.34) 38.57 (2,992.28)

B Subsidiaries (Group’s
share)
B.1 Indian
B.1.1 ONGC Videsh Limited India 9.16 204,664.22 14.84 17,002.95 (7.37) 9,012.33 (335.35) 26,015.28
(OVL)
B.1.2 Hindustan Petroleum India 10.77 240,634.57 23.06 26,421.84 3.70 (4,522.31) (282.30) 21,899.53
Corporation Limited
(HPCL)
B.1.3 Mangalore Refinery and India 2.95 66,022.06 (17.03) (19,515.42) 0.07 (84.62) 252.66 (19,600.04)
Petrochemicals Ltd.
(MRPL)
B.1.4 ONGC Mangalore India (0.12) (2,710.65) (12.25) (14,038.49) 0.00 (2.73) 181.00 (14,041.22)
Petrochemicals Ltd.
(OMPL)
B.1.5 Petronet MHB Ltd India 0.40 8,844.77 0.77 882.72 0.00 (0.99) (11.37) 881.73
(PMHBL)
B.1.6 Prize Petroleum India (0.14) (3,083.50) (0.30) (343.10) 0.28 (348.30) 8.91 (691.40)
Company Ltd.
B.1.7 HPCL Biofuels Ltd. India (0.02) (345.00) (0.75) (855.50) 0.00 (5.20) 11.09 (860.70)
B.1.8 ONGC Videsh Rovuma India (0.05) (1,030.36) (5.66) (6,486.86) - - 83.62 (6,486.86)
Ltd.
B.2 Foreign
B.2.1 ONGC Nile Ganga B.V. The 1.04 23,294.22 2.19 2,504.04 - - (32.28) 2,504.04
(ONGBV) Netherlands
B.2.2 ONGC Campos Ltda. Brazil 0.67 15,024.22 (1.80) (2,058.39) - - 26.53 (2,058.39)
B.2.3 ONGC Nile Ganga (San The 1.51 33,831.73 (3.71) (4,249.33) - - 54.78 (4,249.33)
Cristobal) B.V. Netherlands
 Sl. Name of the entity in Country of Net Asset, i.e., total Share in profit or loss Share in other Share in total
No. the group incorporation assets minus total comprehensive income comprehensive income
liabilities
As % of Amount As % of Amount As % of con- Amount As % of con- Amount
consoli- consolidated solidated solidated
dated net profit or loss other com- total com-
assets prehensive prehensive
income income
B.2.4 ONGC Caspian E&P The (0.08) (1,844.90) 0.07 80.35 - - (1.04) 80.35
B.V. Netherlands
B.2.5 ONGC Narmada Nigeria 0.00 23.83 (0.02) (27.35) - - 0.35 (27.35)
Limited (ONL)
B.2.6 ONGC Amazon Bermuda 0.00 13.50 0.02 24.03 - - (0.31) 24.03
Alaknanda Limited
(OAAL)
B.2.7 Imperial Energy Limited Cyprus 1.75 39,209.93 9.48 10,861.33 - - (140.01) 10,861.33
B.2.8 Imperial Energy Tomsk Cyprus 0.00 90.64 (0.01) (15.56) - - 0.20 (15.56)
Limited
B.2.9 Imperial Energy Cyprus 0.10 2,299.87 (0.01) (15.33) - - 0.20 (15.33)
(Cyprus) Limited
B.2.10 Imperial Energy Nord Cyprus 0.43 9,551.15 (0.01) (15.73) - - 0.20 (15.73)
Limited
B.2.11 Biancus Holdings Cyprus 0.01 250.99 1.57 1,803.44 - - (23.25) 1,803.44
Limited
B.2.12 Redcliffe Holdings Cyprus 0.03 563.87 (0.01) (15.13) - - 0.20 (15.13)
Limited
B.2.13 Imperial Frac Services Cyprus 0.00 11.72 (0.01) (16.11) - - 0.21 (16.11)
(Cyprus) Limited
B.2.14 San Agio Investments Cyprus (0.00) (32.66) (0.48) (553.11) - - 7.13 (553.11)
Limited
B.2.15 LLC Sibinterneft Russia (0.01) (250.12) (0.67) (766.23) - - 9.88 (766.23)
B.2.16 LLC Allianceneftegaz Russia (0.06) (1,418.27) (14.18) (16,239.33) - - 209.33 (16,239.33)
B.2.17 LLC Nord Imperial Russia 0.07 1,478.60 (2.72) (3,111.94) - - 40.11 (3,111.94)
B.2.18 LLC Rus Imperial Russia (0.01) (156.71) (3.72) (4,264.11) - - 54.97 (4,264.11)

ANNUAL REPORT
Group
B.2.19 LLC Imperial Frac Russia 0.00 40.57 1.15 1,321.13 - - (17.03) 1,321.13
Services
B.2.20 Carabobo One AB Sweden 0.21 4,680.31 (0.00) (3.62) - - 0.05 (3.62)
B.2.21 Petro Carabobo Ganga The 0.31 7,023.93 (0.88) (1,003.68) - - 12.94 (1,003.68)
B.V. Netherlands

2020-21
719

Consolidated Financial Statements

 720
Sl. Name of the entity in Country of Net Asset, i.e., total Share in profit or loss Share in other Share in total

ENERGY SOLDIERS
THE UNSTOPPABLE
No. the group incorporation assets minus total comprehensive income comprehensive income
liabilities
As % of Amount As % of Amount As % of con- Amount As % of con- Amount
consoli- consolidated solidated solidated
dated net profit or loss other com- total com-
assets prehensive prehensive
income income
B.2.22 ONGC (BTC) Ltd Cayman 0.01 148.28 0.10 114.64 - - (1.48) 114.64
Islands
B.2.23 Beas Rovuma Energy Republic of 2.43 54,385.21 0.15 173.10 - - (2.23) 173.10
Mozambique Ltd Mauritius
B.2.24 ONGC Videsh Rovuma Republic of 0.00 0.16 (0.00) (0.82) - - 0.01 (0.82)
Ltd. Mauritius
B.2.25 ONGC Videsh Atlantic Texas 0.00 107.00 (0.05) (55.45) - - 0.71 (55.45)
Inc.
B.2.26 ONGC Videsh Singapore (4.91) (109,734.51) (0.03) (32.44) - - 0.42 (32.44)
Singapore Pte. Ltd.
B.2.27 ONGC Videsh Singapore 0.84 18,862.19 (4.00) (4,585.90) - - 59.12 (4,585.90)
Vankorneft Pte. Ltd.
B.2.28 Indus East Israel (0.00) (7.91) (0.01) (10.72) - - 0.14 (10.72)
Mediterranean
Exploration Ltd.
B.2.29 HPCL Middle East Dubai 0.00 28.00 (0.02) (22.60) (0.00) 2.30 0.26 (20.30)
FZCO
C Non controlling 8.23 184,057.39 5.70 6,526.62 2.64 (3,233.59) (42.45) 3,293.03
interest in all
subsidiaries
D Associates
(Investments as per
the equity method)
D.1 Indian
D.1.1 Pawan Hans Ltd. (PHL) India 0.22 4,871.06 (0.16) (184.99) - - 2.38 (184.99)
D.1.2 Petronet LNG Limited India 0.63 13,976.55 1.01 1,160.86 0.00 (0.07) (14.96) 1,160.80
(PLL)
D.1.3 Rohini Heliport Limited India 0.00 0.05 - - - - - -
(RHL)
D.1.4 GSPL India Gasnet Ltd. India 0.04 973.00 (0.03) (39.60) 0.00 (0.10) 0.51 (39.70)
D.1.5 GSPL India Transco India 0.02 502.10 (0.04) (47.50) 0.00 (0.40) 0.62 (47.90)
Ltd.
D.2 Foreign
 Sl. Name of the entity in Country of Net Asset, i.e., total Share in profit or loss Share in other Share in total
No. the group incorporation assets minus total comprehensive income comprehensive income
liabilities
As % of Amount As % of Amount As % of con- Amount As % of con- Amount
consoli- consolidated solidated solidated
dated net profit or loss other com- total com-
assets prehensive prehensive
income income
D.2.1 Petro Carabobo S.A. Venezuela 0.20 4,449.55 (2.91) (3,331.17) - - 42.94 (3,331.17)
D.2.2 Carabobo Ingeniería y Venezuela 0.00 0.32 - - - - - -
Construcciones, S.A.
D.2.3 South-East Asia Gas Hongkong 0.08 1,844.90 1.18 1,354.48 - - (17.46) 1,354.48
Pipeline Company
Limited
D.2.4 Tamba B.V. The 0.40 9,023.35 0.86 986.73 - - (12.72) 986.73
Netherlands
D.2.5 JSC Vankorneft Russia 5.03 112,329.02 11.54 13,221.62 - - (170.43) 13,221.62
D.2.6 Petrolera Venezuela 1.20 26,768.06 (0.20) (233.57) - - 3.01 (233.57)
Indovenezolana S.A.
D.2.7 Falcon Oil & Gas B.V The 0.99 22,119.75 1.34 1,535.21 - - (19.79) 1,535.21
Netherlands
D.2.8 Moz LNG1 Holding Co. Abudhabi 0.00 67.72 0.02 18.77 - - (0.24) 18.77
Ltd.
Joint Ventures
(Investments as per
the equity method)
E.1 Indian
E.1.1 Indradhanush Gas Grid India 0.00 85.13 (0.01) (10.63) - - 0.14 (10.63)
Ltd. (IGGL)
E.1.2 Mangalore SEZ Ltd India 0.01 118.09 (0.07) (84.98) 0.00 (0.17) 1.10 (85.14)
(MSEZ)
E.1.3 ONGC Petro Additions India 2.74 61,148.99 (8.45) (9,685.11) 0.01 (10.06) 124.98 (9,695.18)
Ltd. (OPaL)
E.1.4 ONGC Tripura Power India 0.29 6,389.02 (0.11) (121.63) 0.00 (0.44) 1.57 (122.06)

ANNUAL REPORT
Company Ltd.( OTPC)
E.1.5 ONGC Teri Biotech Ltd. India 0.01 312.19 0.03 37.53 0.00 (0.07) (0.48) 37.46
(OTBL)
E.1.6 Dahej SEZ Limited India 0.04 930.23 0.20 231.95 - - (2.99) 231.95
(DSEZ)
E.1.7 Hindustan Colas Pvt. India 0.09 1,950.10 0.60 690.70 0.00 (0.60) (8.90) 690.10
Ltd.

2020-21
E.1.8 HPOIL Gas Pvt. Ltd. India 0.03 583.60 (0.01) (14.00) - - 0.18 (14.00)
721

Consolidated Financial Statements

 722
Sl. Name of the entity in Country of Net Asset, i.e., total Share in profit or loss Share in other Share in total

ENERGY SOLDIERS
THE UNSTOPPABLE
No. the group incorporation assets minus total comprehensive income comprehensive income
liabilities
As % of Amount As % of Amount As % of con- Amount As % of con- Amount
consoli- consolidated solidated solidated
dated net profit or loss other com- total com-
assets prehensive prehensive
income income
E.1.9 HPCL Rajasthan India 0.58 12,897.20 0.01 13.40 - - (0.17) 13.40
Refinery Ltd.
E.1.10 South Asia LPG Co. India 0.05 1,207.40 0.54 618.00 (0.00) 0.80 (7.98) 618.80
Pvt. Ltd.
E.1.11 HPCL Shapoorji Energy India 0.08 1,729.30 (0.00) (1.70) (0.00) 0.30 0.02 (1.40)
Pvt. Ltd.
E.1.12 HPCL - Mittal Energy India 2.19 49,057.90 (0.28) (321.20) 1.39 (1,703.90) 26.10 (2,025.10)
Ltd.
E.1.13 Godavari Gas Pvt Ltd. India 0.01 149.30 (0.01) (6.50) - - 0.08 (6.50)
E.1.14 Petronet India Ltd. India 0.00 4.20 - - - - - -
E.1.15 Mumbai Aviation Fuel India 0.04 868.40 0.09 100.10 - - (1.29) 100.10
Farm Facilities Pvt. Ltd.
E.1.16 Aavantika Gas Ltd. India 0.05 1,169.50 0.18 210.20 0.00 (0.80) (2.70) 209.40
E.1.17 Bhagyanagar Gas Ltd. India 0.04 867.90 0.04 47.70 - - (0.61) 47.70
E.1.18 Ratnagiri Refinery & India 0.02 362.80 (0.04) (49.90) - - 0.64 (49.90)
Petrochemical Ltd.
E.1.19 IHB Pvt. Ltd. India 0.01 249.50 (0.01) (13.00) - - 0.17 (13.00)
E.1.20 Shell MRPL Aviation India 0.01 286.79 0.01 7.60 0.00 (0.22) (0.10) 7.38
Fuels & Services Pvt.
Limited (SMASL)
(through MRPL)
E.2 Foreign                  
E.2.1 Himalaya Energy (Syria) The 0.01 207.73 (0.01) (16.16) - - 0.21 (16.16)
B.V. Netherlands
E.2.2 Mansarovar Energy Bermuda 0.71 15,945.40 0.56 646.38 - - (8.33) 646.38
Colombia Ltd.
                     
  Total   100.00 2,235,103.42 100.00 114,562.59 100.00 (122,320.17) 100.00 (7,757.58)

71 Approval of financial statements

The Consolidated Financial Statements were approved by the Board of Directors on June 24, 2021.
 ANNUAL REPORT
2020-21
FOR AND ON BEHALF OF THE BOARD

Sd/- Sd/- Sd/-

(M. E. V Selvamm) (Vivek C Tongaonkar) (Subhash Kumar)
Company Secretary Chief Financial Ofcer Chairman & Managing Director
Place : New Delhi Place : New Delhi (DIN: 07905656)
Place : New Delhi
In terms of our report of even date attached
For G M Kapadia & Co. For R Gopal & Associates For SARC & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 104767W Firm Reg. No.000846C Firm Reg. No. 006085N

Sd/- Sd/- Sd/-

(Rajen Ashar) (Sandeep Kumar Sawaria) (Sunil Kumar Gupta)
Partner (M. No. 048243) Partner (M. No. 061771) Partner (M. No. 084884)
Place: Mumbai Place: Kolkata Place: New Delhi

Consolidated Financial Statements

For Kalani & Co. For R.G.N. Price & Co. For S. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No: 000722C Firm Reg. No.002785S Firm Reg. No. 000560C

Sd/- Sd/- Sd/-

(Varun Bansal) (Rangarajan Raghavan Iyengar) (Sudha Shetty)
Partner (M.No. 402856) Partner (M. No. 041883) Partner (M. No. 047684)
Place: Jaipur Place: Mumbai Place: Mumbai

June 24, 2021

723
 THE UNSTOPPABLE ANNUAL REPORT
ENERGY SOLDIERS Gurjant Singh 2020-21
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#ProudONGCian
Proud of the 7 ONGCians, who flew the Indian flag high at the
Tokyo 2020 Olympic Games

Sumit Kumar
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Consolidated Financial Statements

Bhamidipati
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Badminton

724 725
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Company Secretariat

Oil and Natural Gas Corporation Ltd.

CIN: L74899DL1993GO1054155
Plot No. 5A- 5B, Nelson Mandela Road
Vasant Kunj, New Delhi-110070
Tel.: 011-26754073 Fax: 011-26129081
www.ongcindia.com I [email protected]