On behalf of the Board of Directors of your Company, it is my pleasure to present the 31^st Annual Report of Oil And Natural Gas Corporation Limited (ONGC/ the Company) and its Audited Financial Statements for the year ended 31 March 2024 (FY’24), together with the Auditors’ Report and Comments on the Financial Statements by the Comptroller and Auditor General (CAG) of India.

In a global landscape defined by increased volatility in energy markets and ongoing international economic sluggishness, India has not only navigated uncertainty but has also avoided the trap of economic stagnation. As the fastest-growing major economy, we are set to sustain this impressive growth trajectory into the foreseeable future. Nevertheless, the evolving energy challenges are multifaceted, involving not only natural gas but also oil, coal, electricity, food security, and climate change. The oil and gas industry continues to be marked by constant unpredictability and potential volatility.

Your Company has been striving to enhance the value proposition for all stakeholders while maintaining the momentum of capital spending and project execution, sustaining production levels, and optimizing operational costs. By consolidating our efforts and continuing to grow sustainably, we can meet the country’s expanding energy needs while creating value for stakeholders.

Your Company, along with its group companies, has registered another year of robust performance and made substantial progress on most of the priority areas.

Highlights of production during FY’24 are as under:

•    Crude oil production, including share of JV production, was 21.139 Million Metric Tonnes (MMT) during FY’24 against 21.485 MMT during FY’23.

•    Natural gas production, including share of JV production, was at 20.647 Billion Cubic Metres (BCM) during FY’24 against 21.351 BCM during FY’23.

•    Value Added Products (VAPs) production during FY’24 was 2.519 MMT against 2.598 MMT during FY’23.

Backed by an intensive and continuous exploration programme, your Company accreted 45.20 MMTOE of 2P reserves from ONGC operated areas in India. Reserve Replacement Ratio (RRR) from domestic fields was 1.15 with respect to 2P reserves. Your Company has maintained Reserve Replacement Ratio (2P) of more than one for the 18th consecutive year.

Your Company has five direct subsidiaries, namely ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL), Hindustan Petroleum Corporation Limited (HPCL), Petronet MHB Limited (PMHBL) and ONGC Green Limited (OGL).

Your Company also has nine Associates/ Joint Ventures, namely ONGC Petro additions Limited (OPaL), ONGC Tripura Power Company Limited (OTPC), ONGC TERI Biotech Limited (OTBL), Dahej SEZ Limited (DSL), Mangalore SEZ Limited (MSEZL), Indradhanush Gas Grid Limited (IGGL), Pawan Hans Limited (PHL), Petronet LNG Limited (PLL) and Rohini Heliport Limited (RHL).

1. Major Highlights of FY’24

i.    Revenue from operations in FY’24 stood at '1,384,021 million against '1,555,173 million in FY’23.

ii.    Net profit in FY’24 was '405,260 million against '400,965 million during FY’23 (restated).

iii.    Your Company has notified 11 new hydrocarbon discoveries (6 New Prospects & 5 New Pool discoveries) in its operated acreages including 5 discoveries in OALP blocks and 6 discoveries in nomination blocks.

iv.    During the FY’24 seven hydrocarbon discoveries

(Gopavaram-21,    South    Mahadevapatnam-2,

East Lakhibari-6, Gojalia-13, KG-DWN-98/2-M-1, KGD982NA-M-3 and Karugorumilli-1) including three discoveries notified during FY’24 were monetized with cumulative 2P reserves (EUR) of 7.11 MMTOE.

v.    Commenced oil production from KG-98/2 Cluster-II through 4 nos. of oil wells (PDM-A, PDM-B, PDM-C & PDM-G) on 07 January 2024. Water Injection in KG-

DWN-98/2 Cluster-II started on 27 February 2024 through well PDM-D & PDM-F.

vi.    Your Company has notified two new prospect discoveries “UTKAL’ (MDW-27) and “KONARK” (MDW-26) in OALP block MN-DWHP-2018/1 in Mahanadi Offshore Deepwater. This success has rejuvenated exploration efforts in Mahanadi Deepwater sector and has opened up a large area for further exploration which shall pave way for commercial exploitation of hydrocarbons.

vii.    The Hydrocarbon Strike from the Cretaceous Sequences in well ELDA (EL-6) in Upper Assam Shelf-South is significant milestone as it is first Hydrocarbon Discovery from the Cretaceous sequences in entire Assam Shelf and thereby marking the New Play Opening in the A&AA Basin.

viii.    Accelerated exploratory efforts in the newly acquired OALP blocks in various Indian sedimentary basins where your company has drilled a total of 21 exploratory wells which has resulted in six hydrocarbon discoveries namely Amrit, Moonga, Moti, Utkal, Konark and West Amod.

ix.    During the year, with an objective to consolidate and realize reserves from unconventional reservoirs, your company has completed drilling of 2 HPHT wells one each in A&AA and Mumbai Offshore. Additionally, 6 wells with Basement Play as an objective - Five in Cambay Basin and one in A&AA Basin were drilled.

x.    During the year, a total 103 exploratory wells were drilled, of which 68 wells were concluded and 35 wells are yet to be tested. Out of these, 28 wells proved to be hydrocarbon bearing. Besides 28 wells of previous years were concluded out of which 13 wells proved to be hydrocarbon bearing.

xi.    Success ratio in exploratory drilling achieved considering total wells tested/concluded including those of previous year’s wells was 1: 2.3 (42.7%) - (Total 96 wells concluded out of which 41 wells were proved to be hydrocarbon bearing).

xii.    A total of 971.81 LKM of 2D and 8588 SKM of 3D seismic

data was acquired during FY’24. Out of this quantum, a total of 671.82 LKM 2D and 6140.28 SKM of 3D seismic data was acquired in Open Acreage Licensing Policy (OALP) blocks.

xiii.    Your Company has signed MoUs with reputed E&P Majors for technology know-how and de-risking of cost intensive exploration frontiers. These partnerships will encompass exploration in Deep water frontiers, low-carbon energy opportunities, including renewables, CCUS, Geothermal green hydrogen, green ammonia, and other derivatives stemming from green hydrogen. Various digital initiatives are also being taken up across the entire E&P domain.

xiv.    For deep & ultra-deepwater exploration, your Company has signed MoUs with Global Majors like Chevron, ExxonMobil and TotalEnergies to pursue exploration activities. Through these global collaboration with E&P Majors, your Company has benefitted in terms of better understanding of the basins, especially deep & ultra-deepwater setting.

xv.    Seven contract areas awarded to your Company under OALP Bid Round-VIII covering an area of 30,342 Sq.Km, RSC (Revenue Sharing Contract) for these areas were signed on 3 January 2024. These awarded blocks are 1 Onland Block CB-ONHP-2022-1 in Cambay Basin and 6 Offshore blocks, BP-OSHP-2022-1 in Bengal Offshore, KK-OSHP-2022-1 & KK-DWHP-2022-1 in Kerala-Konkan Offshore, MB-OSHP-2022-1 in Mumbai offshore, GS-DWHP-2022-1 in Saurashtra Offshore and MN-UDWHP-2022-1 in ultra-deep water of Mahanadi Offshore.

xvi.    Your Company incurred '6,866.84 million on Research & Development activities in FY’24 against '5,698.46 million during FY’23. These initiatives resulted in improved operational efficiencies and cost optimization for your Company.

xvii.    During FY’24, 31 Patents and 08 Copyright were granted to your Company by the Intellectual Property India, Government of India.

xviii.    ONGC registered highest-ever CSR expenditure of ' 6,345.74 Million in FY’24 including highest-ever expenditure of ' 809.62 Million in Company’s Aspirational Districts.

2. Global Recognitions

Your Company has been recognized at various national and international forums, list of Awards and Accolades is annexed as Annexure - A.

3. Details of discoveries

During the year, your Company has notified eleven (11) new hydrocarbon discoveries (six on-land and five offshore) in its operated acreages.

Details of exploratory efforts made by your Company were as under:

Out of eleven new discoveries made during the financial year, three discoveries viz. Gopavaram-21, South Mahadevapatnam-2 and East Lakhibari-6 were monetized in addition to 4 discoveries of earlier years. Gain from discoveries monetized during FY’24 was 0.20 MMTOE.

4. Reserve Accretion and Reserve Position

During FY’24, accreted 45.20 MMTOE of 2P reserves from ONGC operated areas in India. Reserve Replacement Ratio (RRR) from domestic fields (excluding JV share) was 1.15 with respect to 2P reserves. The position of 2P reserves established as on 1 April 2024 by ONGC in its operated areas and in Non-Operated (JV Share) was as follows:

5.    Award of Blocks/New Acreages taken for Exploration

During the year, Revenue Sharing Contracts (RSC) for 7 OALP Bocks (OALP-VIM) covering total of area 30,342 Sq.km. were executed on 3 January 2024.

Currently, all the awarded OALP blocks are in exploratory phase. As on 1 April 2024, a total 4378.31 LKM of 2D seismic data and 26058.18 SKM of 3D seismic data has been acquired and 21 exploratory wells drilled in OALP Blocks.

With these exploratory efforts ONGC has notified 6 hydrocarbon discoveries including Amrit, Moonga & Moti in Mumbai Offshore (SW), Utkal & Konark in Mahanadi Offshore (DW) and West Amod in Cambay Onland.

Total New Acreages taken for exploration during the year was 30,342 SKM.

6.    EOR Proposals

Your Company has been consistently expanding its Enhanced Oil Recovery (EOR) portfolio. Under the Enhanced Recovery (ER) policy, fields of ONGC located in onshore and offshore areas were considered for screening. 33 ER Pilot/Preliminary Screening reports have been submitted to the Directorate General Hydrocarbons (DGH) upto 31 March 2024 for Oil Fields. 17 ER Pilots already approved (Phase-I), 3 are not approved, 11 Under Approval (Phase-II) and 2 have been notified.

7.    Major Projects Completed

During the FY’24 following 2 major projects with an investment value of around ' 27,398 Million were completed:

* Proportionate PI cost of ONGC Share (51%)

8.    CAPEX

During the year, total capital expenditure of your Company including its subsidiaries was '5,67,697 Million (comprising ONGC - ' 374,942 Million, HPCL - '144,118 Million, OVL -'32,590 Million , MRPL - '15,995 Million and PMHBL - '52 Million).

9.    Drilling of Wells

Your Company drilled 544 wells during FY’24(including 3 wells from PEC) against 463 wells drilled during FY’23 (including 2 wells from PEC). 103 of these wells were exploratory wells, while the balance 441 wells were development wells including side-track wells. The major highlights of Drilling operations during the year were as under:

•    The overall exploratory and development cycle speed witnessed the attainment of the highest-ever cycle speed, reaching ~1042M/RM, reflecting efficiency and operational excellence.

•    Drilling has been started in an area that was earlier classified as a ‘no-go’ area because of national security interests and two discoveries made in the Mahanadi Block MN-DWHP-2018/1 named Utkal and Konark in water depth of 714 metre and 1,110 metre respectively.

Well Services:

•    Well services achieved the feat of servicing highest ever wells in a financial year through work over jobs (2,110 jobs) and at the same time it has achieved highest ever work over efficiency (annual work over index of 28.30) for FY’24.

•    Well services carried out 13,276 well stimulation jobs in FY’24, which is the highest ever stimulation jobs.

•    Well services has set another milestone by testing highest ever number of wells in year i.e. 509 wells (424 Development and 85 exploratory)

•    Installed Oil Manifold (PM-04) in M-field on 16 August 2023 for hook up and integration of M field wells to subsea infrastructure for First Oil production. Four completed oil wells of M-Field (KG-DWN-98/2:Cluster-II) hooked up to sub-sea production system, FPSO and First oil production commenced on 07 January 2024.

10. Oil, Gas & VAP Production

Details of production and sales quantity product wise during FY’24 (inclusive of JV Share) in comparison of FY’23 were as under:

11.    Production from Overseas Assets -ONGC Videsh Ltd.

Your Company’s overseas E&P operations are carried out through its wholly owned subsidiary, ONGC Videsh Limited (OVL), which conducts its operations either directly or through its subsidiaries. Production from the overseas assets during FY’24 increased to 10.518 MMTOE in comparison to 10.171 MMTOE during FY’23. Oil production during FY’24 was 7.178 MMT as compared to 6.349 MMT during FY’23 and Gas production during FY’24 was 3.340 BCM as compared to FY’23 production of 3.822 BCM. This positive performance was driven by additional contributions from five operated/ jointly operated assets, i.e. MECL, CPO-5, GPOC, SPOC, and Sancristobal despite natural decline, geopolitical tensions, and local issues. During FY’24, the Company achieved a significant milestone by surpassing the 200 MMTOE mark in cumulative production. On 31 March 2024, OVL’s cumulative production reached 204.370 MMTOE.

12.    Other Exploration Initiatives/Activities

a)    Acquisition of 2D Seismic Data for appraising offshore area up to EEZ:

Your Company was entrusted as nodal agency for EEZ survey under Government-funded program (To appraise the unapprised offshore areas upto Exclusive Economic Zone - EEZ), a total of 82,353 LKM (revised target) of state-of-the-art 2D high fidelity broadband seismic data (API) has been planned to be acquired in three sectors namely West Coast, East Coast and Andaman offshore. A total of 79,545 LKM of 2D seismic data has been acquired by ONGC as on 31 March 2024, which was around 96.59% of the total target.

b)    Basement Exploration:

As a part of concerted exploration efforts for Basement Play, a total of 6 wells having basement as an objective were drilled, this includes Padra-199, Padra-208, Padra -213, Padra-215 and Padra-219 in Cambay Basin, B-BR-22 in Assam Shelf. While testing of Basement section, well Padra-199 & 215 flowed water and wells Padra-208, 213 & 219, during activation gave influx of water with oil emulsion and feeble gas. In the well B-BR-22 (BRAL) drilled in Assam Shelf, basement objective was not tested.

c) HP-HT Exploration:

High pressure- High Temperature (HP-HT) and Tight reservoirs have been an exploration and development challenge for your Company. Your Company is striving hard in the field of HP-HT due to bore hole complications, fluid design, high-cost drilling technology including HP-HT cementing, well construction and other reservoir engineering issues. In ONGC operated areas, HP-HT regime is encountered in areas like Periyakudi, Bhuvanagiri in Cauvery Onland, Kottalanka, Nagyalanka, Bantumilli South and Malleswaram in KG Onland. Yanam in KG Shallow offshore, G-4-6, D-33 and GS-OSN-2004/1 in Western Offshore were also classified as HP-HT reservoirs. Additionally, high pressure regime is often encountered in certain areas of Assam Arakan Fold Belt.

During FY’24, two exploratory HP-HT wells namely well B-56-2 in Western Offshore Basin and Baramura-37 in AAFB Tripura were taken up for drilling. Well B-56-2 in Mumbai offshore proved gas bearing and Well Baramura-37 will be tested at later date.

13. Exploration and Production from Unconventional Sources

a)    Coal Bed Methane (CBM):

Your Company was awarded 9 blocks in CBM bidding rounds including nomination, out of which it has relinquished 5 blocks on the basis of data generated from exploratory efforts and has been operating 4 blocks (Jharia, Bokaro and North Karanpura in Jharkhand and Raniganj in West Bengal) where exploration activities have been completed. Developmental activities are at an advanced stage in three of these blocks viz. Bokaro, Jharia and North Karanpura.

Recently, in the Special CBM Bid Round 2021, ONGC has been awarded two CBM Blocks i.e. BP-ONHP(CBM)-2021/2 in Rajmahal Coalfield of Jharkhand and SR-ONHP (CBM)-2021/5 in Sohagpur Coalfield of Madhya Pradesh. Efforts are in progress for obtaining statutory approvals for exploration.

b)    Gas Hydrate Exploration Program

Your Company has been an active contributor to gas hydrate exploratory research under the National Gas Hydrate Program (NGHP) of Government of India. ONGC

has played a significant role in G&G studies for the identification of sites for NGHP-01 and NGHP-02.

During FY’24, your Company has carried out projects to identify gas hydrate prospects in Mahanadi Basin and also integrated and updated the entire East Coast BSR bearing areas in the BSR Map of India, which is approx. 4000 km² for the first time in Indian Subcontinent after the successful completion of NGHP-02. New technology has been acquired on laser diffraction which performs particle size distribution analysis of gas hydrate core samples and gravel pack design for sand control system in KG Basin. Samples from Panna, Mukta and BCL Formation were analysed for the first time in MH-DCS area by utilizing this new technology.

c) Geothermal Energy

Identified potential geothermal hotspots in India for further exploration. Geophysical data acquisition and geo-chemical surveys in Manuguru area have recently been concluded. Processing of data is under progress at KDMIPE.

14. Drilling Services

There has been continuous induction of new technologies in Drilling Services. Some of these new technologies, which are now being used extensively are:

1.    “Soft Speed-II Technology” for Drilling Services,

Assam Asset: Provides stick-slip mitigation by automatically varying TDS parameters at surface. Pilot project being executed for 1 year in Drilling Services. Same has been successfully inducted in well GKIX (Rig EV-2000-5) and subsequently operational in GKBX (Rig EV-2000-3).

2.    Axial Oscillation Tool for Drilling Services, Assam

Asset: Approved by TIB (Technology Induction Board) and successfully inducted in well NGDF (rig M-6100-1) and operational in Assam Asset. This Down-hole tool providing axial oscillations to string thereby preventing string/stabilizer hanging at low side during sliding operations.

3.    Liner While Drilling: Continuing the Pilot project from previous year, 4 wells have been completed using Liner While Drilling Technology in 8 /’’ phase. The

technology has provided benefit in drilling through unstable (shale) formation and further through depleted reservoir in same drilling phase, facilitating simultaneous liner casing and cementation of drilled sections without any issues. Technology has been proven for minimising formation damage due to drilling fluid loss management.

4.    Under Reamer services: It allows to mitigate the well bore complications and enhance the hole cleaning. Successfully utilised 12 W’ x 14 %” under reamer services and simultaneously drilled and enlarged (HEWD-Hole enlargement while drilling) the hole from 10 /” x 12 W’ by using under reamer services with 10 /” PDC bit in well NVV#AA first time in Onland ONGC and drilling of this section completed in 53 days against plan of 124 days

5.    Commissioning of state of the art Real Time Drilling Operation Centre (RTDOC) at IDT, to monitor & supervise all drilling activities across ONGC and intervene & suggest mitigation measure to avoid complications.

6.    Drilling of hard deccan trap(basement) of 880 metre in 17.5” section using specialized bit with highest ever ROP of 5.7 m/hr.

7.    Induction of VPN based mobile based application for real time monitoring of drilling operations

8.    Completed HRP-III project with the drilling of 07 no’s UBD wells.

9.    Implemented new technology “Thermoset resin” in well#VADA and achieved successful isolation of water bearing zone thereby adding 0.25 mmscmd of gas production.

10.    Used HGS4K28 based Cement slurry for first time for cementation of CSS wells of Mehsana, resulted in excellent CBL/VDL logs.

11.    Drilling and Completion Fluid with Effluent/ Produced Water: Through Eco Innovation by Institute of Drilling Technology (IDT), Effluent water based drilling fluid has been successfully used in 47 Wells of Mehsana Asset and 15 wells of Rajahmundry Asset in FY’24. Similarly the Effluent water based Completion fluid

has been used in Ankleshwar Asset. This has reduced the fresh water consumption by approximately 80%.

15.    Infrastructure Up-gradation:

Your Company is in the process of up-gradation of existing resources with State-of-Art equipment to remain competitive in the global E&P business. It has already taken actions to refurbish, upgrade and replace its Onshore/Offshore drilling rigs, Workover rigs, Cementing units, Crisis Management equipment in phases. Major Infrastructure Up-gradations during the year were as under:

•    Twenty seven (27) drilling rigs are being replaced by new generation hi-tech rigs in phased manner. Till FY’24, a total 11 new generation hi-tech drilling were commissioned.

•    Till end of FY’24, seven workover Rigs out of 20 Automated Hydraulic Workover rigs were commissioned.

16.    Information Technology

Moving towards digitalization using emerging technologies such as AI, loT and the cloud, by creating digital oilfield and operational activities, your Company has carried out several Business Process improvements in the field of IT in FY’24. Major Process improvements were as follows:

•    ONGC’s state-of-the-art digital Corporate Visualization Center, ‘ONGC DARPAN’ was inaugurated by Hon’ble Minister MoPNG and MoHUA Shri Hardeep Singh Puri on 25 January 2024 at Delhi Corporate office. This first-of-its-kind digital hub in India equipped with latest AR / VR / Live Feeds / Communication technologies to showcase ONGCs field operations and Business Processes in real time on Enterprise Dashboard for monitoring by Top Management.

•    Real Time Drilling Operation Centre (RTDOC)

has been setup at Institute of Drilling Technology (IDT) Dehradun, for centralized real time monitoring of Drilling & Work-over operations, placing ONGC at par with other Global NOCs. Equipped with an active LED video wall and various tools for intelligent

decision making including predictive analytics, Domain experts at RTDOC provide valuable advice / services to all Drilling / Work-Over Rigs in real time. This minimizes the burden of separate monitoring at various locations and thereby eliminating multiple software/hardware requirement.

•    Leveraging Digital technologies for increasing transparency, efficiency and user experience, ONGC has launched various portals / interfaces across different domains, notable amongst which are the Mediation Portal (for conciliation of disputes with business partners) with a comprehensive Legal Database Application, SAP RFM based Security Check-in Interface at Juhu Helibase to facilitate chopper boarding by offshore crew and rollout of revamped Intranet Portals with modern UIs and enhanced features etc. GPU based Servers added to internal portal - ONGC Reports Chabot application for better outreach to end users.

•    Leveraging the capability of SAS advanced Data Anaytics platform, various on-demand analytic solutions including HR, Healthcare & Audit Analytics delivered to stakeholders. Advanced Data Analytics is also being implemented across various Digital projects being undertaken by the Digital Center of Excellence (DCOE) viz. Video Analytics for Safety of Uran, Hazira & Dahej Plants, Analytics in Well Information Systems (Common Reporting Platform) for Drilling & Workover wells and Decision support system for Uran Plant. Moving forward, an AI Task Force has been constituted to explore & leverage AI & GenAI capabilities across all E&P domain in ONGC.

•    For the digitalization across the organization, the Bandwidth has been increased manifold up to 22 GBPS. High capacity 400 Mbps terrestrial microwave connectivity extended up to Mumbai High Asset Platforms with alternative backhaul link through unlicensed band to ensure 24X7 uninterrupted connectivity. Captive BWA Communication network in unlicensed band being deployed in North-East (Assam & Jorhat Assets) for strengthening high speed field communication.

•    Established    B2B    integration with National

E-Governance Service Limited (NeSL) for efficient management of paperless e-Bank Guarantees. Rolled out Corporate level Dashboards for Finance, Technical Services, Asset Manager and Well Services for Top management.

17. Financial Highlights:

Your Company earned Profit After Tax (PAT) of ' 405,260

Million in FY’24 as against restated PAT of ' 400,965

Million in FY’23 i.e. an increase of ' 4295 Million (1.1%) and

registered Revenue from Operations of '1,384,021 Million

in FY’24 down by 11% over FY’23 C1,555,173 Million).

Highlights - Standalone Financial Statements

•    Revenue from Operations : '1,384,021Million

•    Profit After Tax    :    '405,260 Million

•    Contribution to Exchequer    :    '650,569 Million

•    Return on Capital Employed    :    30.60%

•    Debt-Equity Ratio    :    0.02:1

•    Earnings/ Share    :    ' 32.21

•    Book Value/ Share    :    ' 243

18.    Change in Share Capital:

During the year under review, there is no change in capital structure of the Company.

19.    Dividend

Your Company has paid interim dividend of '5.75 per share of '5 each (@115%) in November 2023 amounting to '72,337 million and '4.00 per share of '5 each (@80%) in February 2024 amounting to '50,321 million. The Board of Directors has recommended final dividend of ' 2.50 per share of '5 each (@50%) amounting to '31,451 million subject to approval of shareholders. The total dividend pay-out for FY’24 would be '154,109 million with pay-out ratio of 38.03%.

The Dividend Distribution policy may be accessed at the web link: https://www.ongcindia.com/wps/wcm/ connect/en/investors/policies.

20.    Financial Accounting and Secretarial Standards

The Financial Statements of the Company for FY’24 have been prepared in compliance with the applicable provisions of the Companies Act, 2013 including Indian Accounting Standards (Ind AS) and Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

Secretarial Standards:

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

21.    Loans, Guarantees or Investments

Your Company is engaged in Exploration & Production (E&P) business which is covered under the exemption provided under Section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investments made or guarantee or security given by the Company to subsidiaries and associates were not reported.

22.    Deposits:

Your Company has not accepted any deposit during the year. Further, there was no outstanding deposit and/or unpaid or unclaimed principal amount or interest against any deposit either at the beginning or at the end of FY’24.

23. Credit Rating of Securities:

Details of the Credit Ratings of Debt Securities of the Company as on 31 March 2024:

*S&P Global Ratings vide Press release issued on 29 May, 2024 has revised ONGC's rating outlook to Positive from Stable. The rating action follows the revision of India's sovereign rating outlook to Positive from Stable on 29 May, 2024.

**As there was no amount outstanding against the rated instrument, at the request of the Company, ICRA Limited vide Press Release issued on 20 July, 2023 has withdrawn the short term rating of [ICRA]A1+ assigned to the commercial paper (CP) programme of the Company.

***As NCDs were redeemed and there was no amount outstanding against the said instruments, ICRA Limited vide its Press Release issued on 22 March, 2024, has withdrawn the long term rating of [ICRA] AAA (Stable) assigned to Rs. 2,640 Crore Non-Convertible Debentures (NCDs) of the Company.

24.    Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placed in the Corporate Governance Report, which forms part of the Annual Report.

25.    Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section 188 of the Companies Act, 2013 is provided in specified form AOC-2, annexed as Annexure - B.

26.    Subsidiaries:

A. ONGC Videsh Limited

ONGC Videsh Ltd, the wholly owned subsidiary of your Company for carrying out E&P activities outside India, has participation in 32 oil and gas projects spread across 15 countries. ONGC Videsh portfolio comprises of 14 producing, 4 discovered/ under development, 11 exploration and 3 pipeline projects. The company operates 16 of these projects by itself or in collaboration with JV partners. ONGC Videsh also has 3 subsidiaries in global business hubs i.e., Amsterdam (Netherlands), Singapore and Houston (USA) for asset holding, commercial and technical activities. ONGC Videsh achieved the prestigious Navratna status on 03 August 2023, a recognition by the Government of India.

Gross consolidated revenue of ONGC Videsh for FY’24 was ' 95,534 million (against ' 116,763 million during FY’23) and the Profit After Tax (PAT) was ' 6,393 million during FY’24 as against ' 16,602 million during FY’23 mainly due to higher impairment, non accounting of revenue from Sakhlin-1 and lower crude price realization in FY’24.

Significant events in the area of Exploration & Operations:

•    Enhanced Production in CPO-5, Colombia: At the end

of FY’24 CPO-5 was producing approx. 26,000 BOPD, an increase of about 7,000 BOPD compared to the previous year.

•    Overcoming Challenges in South Sudan: Maintained production of over 64,000 BOPD in South Sudan (GPOC & SPOC projects) despite regional geopolitical issues.

•    Increased Production in MECL, Colombia: The project saw infill well drilling resumption after a gap of 4 years, resulting in a 12% production increase over the previous fiscal year.

•    Significant Progress in ACG, Azerbaijan: ACG project's Azeri Central East (ACE) New Platform with 48 slots nearing completion at a cost of USD 3.3 billion. This platform is expected to deliver incremental oil production of 300 MMBBLS till end of PSA (2049). The first well (K01) started production on 16 April 2024, with an initial rate of 8.5 KBD crude oil.

•    Key License Extensions: The company has secured crucial extensions for exploration licenses in several key projects, solidifying its presence in these regions:

o CPO-5, Colombia: Exploration activities can continue until 18 May 2027 consequent to the recent license extension.

o I EC, Russia: Licenses for exploratory blocks 85-1 and 86 have been extended for two years, granting access for exploration until 31 December 2026.

o Block 06.1, Vietnam: A significant 16-year extension for Block 06.1 was secured, effective from 19 May 2023, providing long-term stability for exploration activities.

o Block-128, Vietnam: Exploration efforts in Block 128 will proceed with a license extension valid until 15 June 2026.

B. Hindustan Petroleum Corporation Limited (HPCL)

Your Company holds 54.90% equity shares in HPCL as on 31 March 2024 and HPCL is a Schedule ‘A’, Maharatna, and listed entity with Pan India presence. HPCL owns and operates 2 major refineries - one at Mumbai (9.5 million metric tonnes per annum - MMTPA) and the other one at Visakhapatnam (13.7 MMTPA). It also owns and operates the largest Lube Refinery in the country with a capacity of 428 TMT (thousand metric tonne). HPCL has a vast marketing network of Supply & Distribution infrastructure comprising of Terminals, Installations, Tap-off Points, LPG Bottling Plants, Aviation Service Facilities, Lube Blending

plants, Lube depots and various customer touchpoints across the country. HPCL has its Research & Development Centre named ‘HP Green R&D Centre’ in Bengaluru.

During FY’24, HPCL refineries at Mumbai and Visakhapatnam achieved combined refining thruput of 22.33 MMT registering an increase of 17% over crude thruput of 19.09 MMT processed during FY’23. Visakha refinery has recorded the highest-ever crude thruput of 12.69 MMT during the year, with diesel production of 5.7 MMT surpassing the previous highest diesel production by more than 30%. HPCL achieved highest ever sales volume of 46.82 MMT in FY’24 compared to previous year’s sales of 43.45 MMT. The company also achieved market share gain of 0.47% amongst PSU Oil Marketing companies. During the year, HPCL also recorded the highest-ever pipeline thruput of 25.83 MMT with a growth of 11.0% over 23.25 MMT pipeline thruput achieved during previous year.

During the year, HPCL crossed a key milestone of 22,000 Retail Outlets with commissioning of 836 Retail outlets during FY’24 taking the total Retail Outlets to 22,022 as of 31 March 2024.

Visakha Refinery Modernization Project was dedicated to the Nation by Hon'ble Prime Minister of India in March 2024. The Refinery is currently operating at enhanced capacity of 13.7 MMTPA at higher yields with the commissioning of various process units.

The Average GRM (Gross of export duty) for the FY’24 was US$ 9.08 per barrel (US$ 12.09 per barrel during the previous financial year). The reduction in GRM is in line with the trend of international product cracks.

As of 31 March 2024 HPCL had 4,355 Retail Outlets with E20 facilities ,1690 Retail outlets with CNG, 3,603 nos. of

Retail outlets with EV Charging, 17,618 no of retail outlets with solar powered. HPCL had total renewable power capacity (including solar and wind power) of 208 MW as on 31 March 2024.

During FY’24, HPCL recorded standalone Profit after tax of ' 146,938 million as compared to Loss after tax of ' 89,740 million for the previous year. Revenue from operations for the FY’24 was ' 4,616,375 million as compared to ' 4,661,924 million during the previous year.

C.    Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company holds 71.63 % equity shares in MRPL, a Schedule ‘A’ Mini Ratna company and listed entity, which is a single location 15 MMTPA Refinery. Further, HPCL, also holds 16.95% equity shares in MRPL.

MRPL’s refinery is established with a versatile design with complex secondary processing units and a high flexibility to process Crudes of various API, delivering a variety of quality products. Achieved Net refining throughput of 16.59 MMT in spite of having major plant shutdown during FY’24 against 17.14 MMT during FY’23.

In FY’24, GRM for MRPL was USD 10.36 /bbl against USD 9.88/ bbl during FY’23. During the year the company has added 40 Retail Outlets making total retail outlets to 103 as on 31 March 2024.

During FY’24, MRPL registered a standalone turnover of ' 1,052,233 million (against ' 1,247,360 million in FY’23) and recorded profit after tax of ' 35,959 million (against Profit after tax of ' 26,384 million in FY’23).

D.    Petronet MHB Ltd (PMHBL)

Your Company, together with its subsidiary HPCL, hold equity shares of 49.996% each in PMHBL. With your Company’s holding of 54.9% in HPCL, the extent of its holding in PMHBL comes to 77.44% and makes PHMBL a subsidiary of ONGC. PMHBL owns and operates Mangalore - Hassan - Bengaluru JV pipeline (362.3 Km) to transport MRPL’s petroleum products to various parts of Karnataka State.

PMHBL achieved a thruput of 4.05 MMT in FY’24 against 3.894 MMT in FY’23 and reported total income of ' 1,857 million in FY’24 (? 1,683 million in FY’23) and recorded a net profit (PAT) of ' 963 million in FY’24 (? 847 million in FY’23).

E.    ONGC Green Limited (OGL):

In endeavour in Green energy business and in order to diversify ONGC’s business portfolio, mitigate risks associated with fossil fuel dependency, and align with sustainability goals, ONGC formed its wholly owned subsidiary ONGC Green Limited (OGL) on 27 February 2024.

Associates and Joint Ventures:-

A.    ONGC Petro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ and incorporated in 2006 for utilizing in-house production of C₂-C₃ and Naphtha from Hazira and Uran units of your Company. Your Company, GAIL and GSPC held 49.36%, 49.21% and 1.43% of equity shares of OPaL respectively as on 31 March 2024.

During FY’24, OPaL reported revenue from operations of ' 143,073 million (? 145,930 million in FY’23) and loss of ' 34,561 million (loss of ' 41,555 million in FY’23).

B.    ONGC Tripura Power Company Limited (OTPC)

OTPC was incorporated in 2004 as a joint venture of your Company. Your Company held 50% of its shares as on 31 March 2024.

OTPC has a 726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura with two generating units with equal capacity. The basic objective of the project is to monetize idle gas assets of your Company in landlocked Tripura State and to boost exploratory efforts in the region.

Average Plant load factor for FY’24 was about 70.7% against 77% in FY’23 and power generation decreased to 4,368 Million Units (MU) in FY’24 from 4,741 MU in FY’23.

Revenue from standalone operations during FY’24 was ' 15,473 million (? 16,315 million in FY’23) and profit after tax (PAT) was ' 699 million during FY’24 (? 2,011 million during FY’23). OTPC has declared total dividend of ' 0.20 per share in FY’24.

C.    ONGC TERI Biotech Limited (OTBL)

OTBL is a JV incorporated in 2007 by your Company (49.98%) along with The Energy Research Institute (TERI) (48.02%) and the remaining 2% shares are held by individuals. OTBL has developed various Biotechnical Solutions for oil and gas Industry through collaborative research involving the Company and TERI. The company has paid interim dividend @ 10% of the paid-up share capital, amounting to '25 million during the FY’24.

Revenue from operations of OTBL during FY’24 was ' 370 million C 370 million in FY’23) and profit after tax (PAT) was ' 150 million during FY’24 (' 192 million during FY’23).

D.    Dahej SEZ Limited (DSL)

DSL, a 50:50 JV of your Company along with Gujarat Industrial Development Corporation (GIDC), was incorporated in 2004 for establishing a multi-product SEZ at Dahej. Your Company has set up C₂-C₃ Extraction Plant as a value-chain integration project in this SEZ, which serves as feeder unit to OPaL, JV of your Company.

Revenue from Operations of DSL during FY’24 was ' 834 million (un-audited) against ' 757 million in FY’23 (audited) and PAT was ' 444 million during FY’24 (un-audited) against ' 381 million (audited) during FY’23.

E.    Mangalore SEZ Limited (MSEZL)

MSEZ is a JV, under Special Economic Zone and was promoted by your Company with an equity stake of 26%. MSEZ, was incorporated in 2006 for development of necessary infrastructure to facilitate and locate industrial establishments. MSEZ is operational since April 2015.

Revenue from standalone operations of MSEZ during FY’24 was ' 1,797 million (? 2,036 million in FY’23) and profit after tax was ' 87 million during FY’24 C 72 million during FY’23).

F.    Pawan Hans Limited (PHL)

PHL, is an Associate of the Company, with 49% holdings, and the Government of India holding remaining 51%. PHL was formed primarily for catering to the logistic requirements of offshore and other remote area oil fields. PHL is a Mini Ratna-I Category PSU, having fleet of 43 helicopters.

G.    Petronet LNG Limited (PLL)

Petronet LNG Limited (PLL), an associate of your Company, which was incorporated in 1998 with 12.50% equity holding along with identical stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL, is a listed Company. PLL, the largest company in the country in supply of LNG, has set up the country’s first LNG receiving and regasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. While the plant at Dahej terminal has 17.5 MMTPA capacity, the Kochi terminal has capacity of 5 MMTPA.

During FY’24, PLL recorded standalone revenue from operations of ' 527,284 million (? 598,994 million during FY’23) and Profit after tax (PAT) of ' 35,362 million during FY’24 (? 32,399 million during FY’23).

H.    Indradhanush Gas Grid Limited (IGGL)

Your Company has promoted and subscribed 20% equity capital in IGGL, a JV company in association with IOCL, GAIL, OIL and NRL. IGGL was incorporated in 2018 for the purpose of laying 1,656 Km pipeline covering northeast states with a capex of ' 92,650 million. MoPNG has approved Viability Gap Funding (VGF) of '55,590 million which is 60% of the project cost. Surveying, ROU acquisition and Pipeline laying in various sections is under progress. Physical progress of 80.4% and financial progress of 65.17% have been achieved till 31 March 2024 with a cumulative financial expenditure of ' 53,614 million.

I.    Rohini Heliport Limited (RHL):

Your Company has subscribed 49% equity capital in Rohini Heliport Limited with Government of India’s stake as 51%, RHL is a mirror company of Pawan Hans Limited, incorporated in 2019 for enabling disinvestment of PHL.

J.    Companies Which Have become/ ceased to be Company’s Subsidiaries, Joint Ventures And Associates Companies during FY’24

a)    Companies which have become subsidiaries: ONGC Green Limited incorporated on 27 February 2024.

b)    Companies which have ceased to be subsidiaries: NIL.

c)    Companies which have become a joint venture or associate: NIL.

d)    Companies which have ceased to be a joint venture or associate: NIL

27. Make in India

To promote “Atmanirbhar Bharat”, ONGC has introduced Development Order Policy in December 2020 for goods and services after delinking it from routine tender process to make the process easier and continuous. The policy enables vendor to offer product at any point of time.

ONGC has been able to localize 19 products through 27 successful development orders, another 13 products/ services are in development by 14 Indian manufacturers/ Service providers.

28.    ONGC Start-Up Initiative

‘ONGC Start-up Fund’, conceptualized in line with the ‘Start-up India’ initiative, launched by the Hon’ble Prime Minister of India, was established to foster, nurture and incubate new ideas related to energy sector. The Fund supports and promotes an ecosystem in the Energy Sector for entrepreneurship among the younger Indians.

ONGC Start-Up Fund supported 23 start-ups with applications in energy sector. The financial commitment to these Start-Ups was '757.70 million as on 31 March 2024. Further Due Diligence of 8 startups was in progress as on 31 March 2024.

29.    Procurement through Government e-Marketplace (GeM)

In line with directives of Government of India, your Company has been making all efforts to enhance procurement of goods and services through GeM portal. During FY’24 ONGC’s total procurement through GeM was ' 71,837.00 million by placing 6,289 orders. ONGC was the 3^rd highest service buying CPSE on GeM during FY’24.

30.    Facilitation for payment of invoices through TReDS Portal

In line with the initiatives of Government of India, your Company is registered on TReDS platform with M/s RXIL, M/s MYND Solution (M1xchange) and M/s A TREDS Ltd. (Invoice Mart), to help MSME vendors get immediate access to liquid fund based on Buyers (i.e. ONGC’s) credit rating by discounting MSMEs trade receivables through an auction mechanism where multiple financers can participate and bid. MSME vendors can avail this benefit by registering themselves with any of the exchanges providing e-discounting/ electronic factoring services on TReDS platform where ONGC is also participating in such TReDS Platform as a Buyer. The exchanges where ONGC is participating are being notified from time to time.

The details of invoices discounted through TReDS system during FY’24 were as under:

Additionally, the reduction in the credit period to 10 days by your Company from FY’24 onwards is a commendable step towards expediting vendor payments, further supporting the MSME sector’s need for timely financial inflows.

31. Health, Safety and Environment (HSE)

ONGC’s commitment to Health, Safety, and Environment (HSE) is reflected in its stringent HSE policy which is duly complemented by a robust HSE Management system.

This comprehensive framework of guidance assures the management of inherent risks of exploration and production operations and ensures the safety of people and the environment. The HSE Management System is built upon the best national and international practices, ensuring a proactive approach to managing health, safety, and environmental aspects. This commitment extends beyond regulatory requirements, aiming for the highest standards of performance.

The focus on “zero harm” underscores the organization’s commitment to responsible and sustainable practices.

FY’24 marked a historic year for ONGC, with zero fatal accidents - a first in the organization’s history. This achievement is a testament to the organization’s strong commitment to HSE Management, coupled with a robust safety culture. In 2023-24, The number of minor accidents decreased by 41% compared to the previous year, highlighting the effectiveness of various initiatives being taken in HSE. In fact, the overall number of accidents and incidents reached its lowest point in 2023-24, in the past decade, demonstrating a positive trend in safety performance.

HSE Initiatives:

a) Compliance with HSE management systems, as well as to prevalent rules, regulations, guidelines and standards

is checked during internal audits, being conducted by multi-disciplinary teams of the Company. The same are also checked by external authorities like Oil Industry Safety Directorate (OISD) and Directorate General of Mines Safety (DGMS). Status of audits/ inspections during FY’24 was as under:-

i.    Multi-disciplinary Teams conducted 287 Internal Safety Audits (ISAs)and overall compliance status of ISA observations as on 31 March, 2024 was 94.60 per cent;

ii.    OISD, conducted audits at 152 Installations. The overall compliance status of the observations raised by OISD as on 31 March, 2024 was 91.79 per cent.

iii.    DGMS, carried out inspections at 152 Installations and the overall compliance status for the contraventions raised by DGMS as on 31 March, 2024 was 97.73 per cent.

b)    ONGC had launched Project ‘Parivartan’ to further strengthen the Safety culture of the organization.

c)    A strong incident reporting and action taken mechanism has been established in the Company, which covers following aspects:

•    Incident Reporting

•    Incident Investigation

•    Implementation of Recommendations

•    Monitoring and Review

•    Continual Improvement

The incident reporting system has been further strengthened by revising the accident/ incident reporting guidelines.

d)    During FY’24, 20216 mock drills have been conducted, including 20184 ERP (Emergency Response Plan), 27 DMP (Disaster Management Plan), and 1 RCP (Regional Contingency Plan) mock drills.

e)    Mines Vocational Training (MVT), mandatory training as per Mines Act, is being imparted to both employees and contract personnel through in-house training centres. MVT was provided to 3471 personnel (870 ONGC and 2601 Contract Personnel) in 2023-24.

f)    Loss Control Tours are being conducted by senior officials for Checking ‘Effective Control’ and ‘Mitigation’ measures against the risks and hazards in operational areas. About 270 Loss Control Tours have been conducted by senior officials in 2023-24.

g)    Reporting of Near Miss is a proactive safety measure of avoiding accidents and it is ensured that all the Near Misses are sincerely reported, and actions are taken on the gaps at earliest. This year 18165 Near Miss (including 136 Hi Potential Near Miss, 2154 Unsafe Acts and 3298 Unsafe Conditions) have been reported. In order to further encourage the work centres to report the Near Miss in SAP and close them by taking required action, best performers are being recognized.

h)    Implemented SAP based E-PTW (Electronic Permit to Work) which maintains system-based checks & balances, eliminates possibility of bypass of procedures and creates trail of documentation for data analysis.

i)    The processes of Management of Change (MoC) has been streamlined and SAP based MoC module has been developed for ensuring adherence to MoC procedures.

j)    To address any unsafe act or unsafe condition, Stop Card program has been implemented which empowers any personnel to use Stop Card to stop a work if it is noticed that the risk associated with any job is unattended or a person is doing work in unsafe manner. The system enables immediate action on the risk through prompt actions.

k)    The Corporate Disaster Management Plan (CDMP) has been revised, incorporating DMP-2020 of MoPNG, NDMP-2019, MoPNG guidelines on COVID-19 & cyclone Tauktae and High-Level Committee’s recommendations on cyclone Tauktae. The contact points an escalation levels have also been mapped and are being updated on monthly level.

l)    An initiative was taken by deploying Hundred Safety officers at various installations, on pilot basis for six months, to aid mines safety officers in improving the safety culture. These installation safety officers are assisting in various important safety related jobs like Job Safety Analysis, Tool Box Talks, Awareness Programs, Observations of Unsafe Behaviour and Conditions, Updating of Documents like Risk Registers, etc.

These personnel are performing a proactive role in timely identifying the unsafe acts and conditions. This is helping in timely taking the actions on gaps observed, leading to avoidance of accidents.

Since the work started by these safety officer in September 2023, there is more than 50% (53.6%) reduction in the average accidents each month.

m)    Environment Clearances

1)    The Ministry of Environment, Forests and Climate Change (MoEFCC) (under A Category) granted 5 Environmental Clearances (ECs).

•    145 wells in 30 ML blocks in Bharuch, Surat and Vadodara districts, Gujarat (dated 13 April 2023)

•    15 Development wells and Quick Production Systems in North 24 Parganas and Nadia districts of West Bengal (dated 13 April 2023).

•    16 wells and establishment of Kasomarigaon EPS and GGS at SUAB drill site in forest area in 6 PML Blocks, Golaghat district, Assam (dated 31 July 2023).

•    Development drilling of well TIDD & establishment of Trishna EPS, Tripura Asset (dated 11 October 2023).

•    5 wells falling in forest area of 3 PML blocks in South Tripura, Sepahijala and West Tripura districts, Tripura (dated 12 October 2023)

2)    From the State Environment Impact Assessment Authority 24 ECs (Western Onshore Basin- 9, MBA Basin-1, Tripura Forward Base- 14) under B2 category at state level have been obtained.

n)    Centralized EPR Registration Certificate of ONGC: The Company has successfully obtained EPR registration certificate from CPCB (Central Pollution Control Board). This registration expedited the Custom clearance of ONGC’s goods with plastic packaging required for organization’s E&P activities.

o)    Mission Life Initiatives: Honorable Prime Minister introduced the concept of LiFE (Lifestyle for Environment), at COP 26 held in Glasgow in 2021, which emphasizes mindful and deliberate utilization instead of mindless and wasteful consumption. In this regard, mass awareness

activities were undertaken for Mission LiFE which includes webinars for all ONGCians, sensitization through digital media in the form of Environmental snippets based on the guidelines issued by MoEFCC.

p)    Waste Management

I.    Waste Water Management: ONGC monitors the waste water usage and maintains the quality of effluent discharged conforming to statutory requirements specified for discharge of treated effluent at surface/ subsurface. The Company has 41 number of Effluent Treatment Plants across onshore work centres to treat approx. 1,04,000 m3/ day of waste water produced during E&P operations. For Offshore effluent treatment, Produced Water Conditioners (PWCs) have been installed at process platforms. Sewage Treatment Plants for treatment of sewage water generated are also provided at offshore facilities.

II.    Hazardous Waste Management: The Hazardous Waste generated in the form of oily sludge/oil contaminated soil are treated using bio-remediation technique in which oil eating consortium of bacteria is used to break down hazardous substances into nontoxic substances, thereby ensuring environmentally safe disposal of waste. It is ensured that the Total Petroleum Hydrocarbon (TPH) of the treated oily sludge is less than 0.5% (5000 ppm) in consonance with the Hazardous and Other Wastes (Management and Trans-boundary Movement) Rules, 2016. During 2023-24, 1,24,798.00 Metric Tons of oily sludge/oil contaminated soil has been bioremediated.

q)    A project for conservation of biodiversity which aims to plant mangroves in an area of 10 ha and protection of the Endangered Olive Ridley Turtle in the Karaikal District of Puducherry has been taken up. The project commenced in August 2022 with various activities planned in 3 years duration.

r)    Oil Spill Management in Offshore operations:

ONGC is having a robust oil spill management system to address oil spills ranging from minor to significant volumes. The Indian Coast Guard (ICG) is designated as a

central coordinating authority by the Government of India for combating oil spills in Indian waters and undertaking oil spill prevention and control. As per the National Oil Spill Disaster Contingency Plan (NOS-DCP) promulgated by ICG, ONGC is maintaining its own Tier-I oil spill response equipment and manpower onboard multi-support vessels in its operational area. For Tier-II level oil spill, ONGC is relying on Indian Coast Guard and ONGC’s mutual aid partners and for Tier-III oil spill, ONGC is maintaining participant membership of Oil Spill Response Limited (OSRL), UK, through which ONGC is having guaranteed response and access to OSRL’s worldwide resources comprising of Booms, Skimmers, Oil Spill Dispersants stockpile, storage equipment, specialized manpower etc. ONGC has a MoU for oil spill response co-operation with Mumbai Port Trust, Jawaharlal Nehru Port Trust and Participating Oil Companies for maintaining Tier-I oil spill response facility & services in Mumbai Harbour.

In addition, ONGC has also developed its own oil spill contingency plan to deal with oil spill incidents and eventualities. ONGC conducts internal oil spill mock drills and also participates in regional and national level mock drills organized by the Indian Navy and Indian Coast Guard. Annual returns on preparedness for oil spill response is being filed to ICG.

32. Carbon Management and Sustainable Development

Sustainable Development is the standard template in the Company and this finds expression in our commitment to continually enhance the benchmarks of economic, environmental and social performance. The major endeavours towards corporate sustainability were as under:

Clean Development Mechanism (CDM):

Your Company had 15 CDM projects registered with the United Nations Framework Convention on Climate Change (UNFCCC) under the Kyoto protocol since 2006.

ONGC is also continuing the Verification/Renewal of existing CDM projects as well as finding opportunities for Registration of new CDM projects. Your company has already submitted an application with UNFCCC

for transition of 6 CDM projects to SDG projects under Article 6.4 of Paris Declaration, 2015. By use of these state of art technologies ONGC till date is able to reduce approximately 22.05 MMTCO₂e.

Greenhouse Gas (GHG) Accounting and Mitigation:

ONGC aims to reduce GHG emissions by focusing on improved energy efficiency. The scope-1 and scope-2 emissions during FY’24 was 9.36 MMTCO₂e and Emission intensity was 0.237 MMTCO₂e/MMTOEG

Global Methane Initiative (GMI):

The GMI is an action-oriented initiative from United States Environment Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. The reductions are achieved through the implementation of “Directed Inspection and Maintenance program” (DI&M) wherein leaks are detected by undertaking survey through IR Camera and remedial measures are taken to arrest the leakage.

Your company is also a signatory of the Oil and Gas Decarbonization Charter (OGDC) at COP-28. By signing OGDC ONGC has committed to initiate steps to achieve Net Zero operations by 2050 at the latest, and ending routine flaring by 2030, and Near Zero upstream methane emissions. Accordingly, Decarbonization Strategy to achieve Net Zero operational emissions by 2038 has been firmed up and is now available in public domain and actions are in hand to achieve the same. This makes ONGC the first Energy Company and Public Sector Undertaking in India to outline a detailed Decarbonization plan aligning with our environmental commitments.

In view of ONGC’s commitment to achieve Zero Routine flaring by 2030 and near zero upstream methane emissions, ONGC has adopted top down approach to detect Methane concentration in atmosphere above its area of operation using TROPOMI (Tropospheric Monitoring Instrument) Satellite data through its remote sensing division of KDMIPE. Further ONGC is also conducting Drone Surveys using Total Energies Patented technology AUSEA to detect hotspots in operational area. Based on the hotspot identified through Remote Sensing

and Arial surveys, ground surveys are conducted to detect specific leaks in pipeline and other instruments which are the source of fugitive methane emissions. By use of these advance technologies, ONGC since 2007, has prevented approximately 20.48 MMSCM of methane gas leakages into the atmosphere, with emission reduction of approx. 0.31MMTCO₂e, which otherwise were hard to detect.

Solar and Wind energy initiatives:

The total installed capacity of renewable energy as on 31 March 2024 was 193.7 MW (Solar: 39.8 MW and Wind: 153.9 MW).

Replacement of conventional lights with LED lighting:

In line with the Government of India’s call for promoting efficient energy use (Ujala Scheme), ONGC entered into a MoU with Energy Efficiency Services Limited (EESL) for replacement of all conventional lights in ONGC in a phased manner.    However, incandescent lamps, tube

lights and CFLs were immediately replaced. As of end of FY24, ONGC has installed around 3.6 Lakhs LEDs.

Carbon Capture, Storage and Utilisation (CCSU)

Carbon Capture, Storage and Utilization (CCSU) is a critical CO₂ emission abatement technology that can prevent large quantities of CO₂ from being released into the atmosphere. In line to achieve the target of Net Zero carbon emissions by 2038, ONGC is taking many net zero initiatives with various mitigating measures.

To understand the rates and mechanisms of key geochemical reactions and their implication on geological storage, a state-of-the-art Carbon Capture, Utilization and Storage (CCUS) Laboratory has been created within Keshava Deva Malaviya Institute of Petroleum Exploration, Dehradun.

The newly established laboratory will be initially working on mineral trapping of CO₂ wherein emphasis will be on rate and mechanism of chemical reaction due to CO₂ sequestration and its implication on host rock (Basalt), as basalt is the most promising rock-type for CO₂ sequestration.

Considering the large-scale CO₂ capture to combat global warming, following areas are in focus for CO₂ capture:

•    Optimization of catalyst for CO₂ capture at room temperature

•    Metal enriched membrane for Direct Air to CO₂ capture at high temperature

•    CO₂ mineralization in deep water aquifers and sea water/ brine

•    Assessment of Geochemical feasibility and geomechanical risk in CO₂ storage in basement.

33.    Internal Financial Control System:

Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information commensurate with the operations of the Company. Effectiveness of Internal Financial Controls is ensured through management reviews, self-assessment and independent testing by the Internal Audit Team indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls are operating effectively. The Audit Committee/ Board reviews the Internal Financial Controls to ensure its effectiveness for achieving the intended purpose. Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is placed along with the Financial Statements.

34.    Conservation of Energy, Technology Absorption and Foreign Exchange earnings & Outgo:

The information as required under section 134(3) (m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure - C.

35.    Business Responsibility and Sustainability Report

Business Responsibility and Sustainability Report (BRSR) is annexed as Annexure - D and forms part of the Board’s Report.

36.    Management Discussion and Analysis Report

As per regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Management Discussion and Analysis Report (MDAR) forms part of this Report.

37.    Corporate Governance

A report on Corporate Governance as stipulated under Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and also on DPE Guidelines on Corporate Governance, 2010 forms part of the Annual Report.

38.    Human Resource Development

Employees are the catalysts instrumental to the growth and excellence of the Company. As a strategic business partner, your Company’s HR promotes a comprehensive and inclusive approach centred towards collaborative & continuous development and synergy.

In alignment with the vision to be global leader in the integrated energy business through sustainable growth, knowledge excellence and exemplary governance practices, your HR is committed to fostering world class human capital in energy business, through best-in-class HR processes.

As on 31 March 2024, there are 25,847 regular employees on the rolls of ONGC. With strategic policy interventions and objective HR processes, your Company empowers the dedicated workforce to embrace the emerging challenges and adapt to the transitioning energy scenario.

Capacity building: In the dynamic E&P business environment, it is imperative that employees are equipped with necessary knowledge, skills and competencies. Your HR has in place some of the best industry training and development curriculum to cater to both current and future work requirements.

During FY’24, 12,751 executives and 5,286 non-executives were imparted training by ONGC in relevant domains.

Apprenticeship engagement - During FY’24, ONGC engaged 1441 number of apprentices in different trades, which was more than the minimum required 2.5% of total manpower in ONGC as per Apprenticeship Act 1961.

Employee Engagement: In FY’24, ONGC implemented an array of employee engagement activities centred towards nurturing collective growth, synergy, innovation and excellence. Some highlights are as follows:

i.    More than 60 ‘People Connect Programmes’ were organized across all work centres of ONGC on the following themes:

•    Interactive session with Key Executive / Domain Experts

•    Wellness and Work Life Balance Workshops

•    POSH / Gender sensitization workshops

ii.    Annual ONGC Business Games were successfully conducted to hone competencies such as strategic thinking, business acumen, entrepreneurial learning and decision making in a competitive scenario with simulated business constraints. During FY’24, a total of 239 teams with 946 executives participated in these games.

iii.    Fun Team Games were also conducted for E0 and below level employees as a capacity building and employee engagement initiative to enhance, result orientation, mental/physical dexterity and coordination amongst the participants, wherein more than 480 employees participated.

iv.    ONGC employees participated in the GOQii Corporate Challenge 2024. Marking its first-time participation, ONGC secured the second position on the overall Corporate Leader board. ONGC teams and participants dominated the competition, achieving the top two spots, with three ONGC teams finishing within the top 5, five in the top 10, and a remarkable eight in the top 15. Notably, 56 ONGC participants achieved the perfect score of 1500, demonstrating exceptional dedication throughout the challenge.

Work- Life Balance: Your Company enhances employee experience through townships equipped with facilities like gymnasiums, clubs, sports centre and music rooms. Facilities for gym, sports, yoga, library, etc. are also offered in ONGC’s offshore living quarters.

Your Company also recognizes and supports Collectives and other groups like Officers’ Club, Women Development

Forum, Employee Welfare Associations, Resident Welfare Association, etc. in each of its work centres. The various community events and activities organized round the year inculcates a sense of belongingness, collaboration, appreciation and togetherness.

Health and Wellbeing: Wellness Centres have been set up at various work centres of ONGC to provide consultations/ counselling to employees and their dependent family members. The focus on creating awareness towards maintaining good health and change in lifestyle to keep the diseases away through these wellness centres and health awareness sessions across work centres has been strengthened.

ONGC is always on the forefront to cater the medical needs of underprivileged people in the remote areas of the country through multi-speciality medical camps. Under this initiative, the medical team examines patients and distribute medicines, rehabilitation aids and spectacles to the needy people of the society under CSR.

Employee Welfare Trusts:

Your Company has established the following Trusts for welfare and social security of employees: -

•    Employees Contributory Provident Fund (ECPF) is

an exempted PF Trust established by your company under EPF&MP Act 1952. The Trust manages the Provident Fund of the employees.

•    Post-Retirement Benefit Scheme (PRBS) Trust manages the pension fund of employees of your company.

•    Composite Social Security Scheme (CSSS)

formulated by your Company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee while in service.

•    Gratuity Fund Trust has been established for payment of gratuity as per the provisions of the Gratuity Act.

•    ONGC Post-Retirement Medical Benefits (PRMB)

Trust is managing the funds for the post-retirement medical benefits of employees.

•    The ‘Sahyog Trust’ has also been set up by your Company for its Sahyog Yojana aimed at providing ex-gratia financial grant for sustenance, medical assistance and treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to workforce and their kin, who lack other means of support. Under this scheme, support is offered to casual, contingent, daily rated, part-time, ad hoc, contract appointees, and tenure-based employees engaged by your Company besides regular and former employees.

•    The Asha Kiran Scheme is also in place to meet the emergency needs of the ex-employees retired prior to 01 January 2007. The scheme was launched as per DPE guidelines from 1.5% of profit before tax.

Implementation of Govt. Directives for Priority Section

ONGC recognizes its responsibility towards welfare of SC and ST communities and complies with the Government directives in this regard. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15.3 percent and 11.3 percent respectively as on 31 March 2024.

Your Company carried out following welfare activities for their betterment in and around its operational areas:-

i.    Annual Component Plan: An allocation of '200 Million is made every year under the Annual Component Plan. Of this, '60 Million is allocated to work centres for taking up welfare activities for local communities in operational areas. The remaining '140 Million is managed centrally and is earmarked for taking up welfare initiatives (education, training, community development, medical and healthcare) for the welfare of areas/persons belonging to SC/ST communities.

ii.    Scholarship to meritorious students: To support higher education of meritorious SC & ST students, 1000 scholarships are offered annually to SC & ST students for pursuing Engineering, MBBS, Geosciences and MBA courses. An amount of ' 48,000/- per student per year is offered, subject to fulfilment of conditions under the scheme.

Disclosure under the Sexual Harassment: ONGC has complied with the provisions under the Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013. As per the provisions under the Act, Internal Committees (IC) have been constituted for dealing with complaints of sexual harassment of women at workplace. The members of the IC have been provided training programs to equip them with relevant knowledge and tact for enquiring into such complaints.

Following is a summary of sexual harassment complaints:

39.    Industrial Relations

Harmonious Industrial Relations were maintained in your Company throughout the year. Man-days loss due to internal industrial action was reported as ‘NIL’ for FY ‘24.

40.    Compliance under the Right to Information Act, 2005

A well-defined mechanism is in place to deal with RTI applications received under the Right to Information Act 2005. A senior level officer has been designated as ‘Nodal Officer’ for fulfilling the requirements under RTI Act 2005. 22 executives have been designated as ‘Central Public Information Officers’ (CPIOs) in various work centres across the Company to process RTI applications. One senior level officer has been designated as First Appellate Authority.

The corporate website of your Company, www.ongcindia. com, has important Information relating to Right to Information Act, 2005 for convenience of general public.

During FY’24, your Company received 1,429 applications (including 120 transferred by other Public Authorities). Against these applications, information as sought were provided in 1,175 applications, 28 applications were rejected and 16 applications were transferred to other public authorities, 20 were returned to applicants in accordance with the provisions of the RTI Act 2005.Total pending requests were 190 as on 31 March 2024. There were 273 first appeals, 226 were disposed-off during the period.

41. Implementation of Official Language Policy

Your Company continued its concerted efforts for promotion and implementation of Official Language. In this regard, some of the efforts taken during the year were:

•    As per the Directives of Parliamentary Committee on Official Language, Hundred-percent Official Language inspection of the work centers across the country was done by the ONGC Headquarter.

•    Unicode Hindi software installed in all offices.

•    Hindi Lecture series in all work centres on the occasion of Azadi ka Amrit Mahotsav.

•    Hindi workshops quarterly conducted at regular intervals in all work centres.

•    Hindi technical seminars/Webinars, Kavi Goshties, Kavi Sammelan and Hindi plays were organised at various work centres.

•    Various programme conducted at all work centres of the Company during Rajbhasha Fortnight (18 to 30 September 2023).

•    On the occasion of Vishva Hindi Divas (10 January 2024), local litterateurs honoured at the headquarter and other work centers of ONGC.

•    Hindi Teaching Scheme of Government of India was implemented effectively at all regional work centres of the company.

•    Introduction of “Parangat” course effectively in all work centres.

•    Hindi magazines are being published to promote Official Language at all work centers of ONGC.

•    Hindi Books and Periodical are purchased regularly.

•    E-Roster of Employees regarding working knowledge of Hindi has been put in place.

•    Paperless office has been made bilingual for effective implementation of Official Language policy. Besides, Unicode has been installed in SAP platform for enabling bilingual working.

•    A bilingual handbook has been prepared and uploaded on reports.ongc.co.in for ready reference on OL policy.

•    Seven Tolic Chairmanship are with ONGC i.e. ONGC Hqrs. Dehradun, Ankleshwar Asset, Mehsana Asset, Assam Asset, Nazira, Tripura Asset Agartala, Cauvery Asset Karaikal and Rajahmundry Asset, Rajahmundary. These offices conducts meeting with Tolic members twice in a year at regular interval for effective implementation of Official language in their offices.

•    Additionally, to encourage the employees to do their work in official language Hindi various, incentive Schemes like Hindi Sevi Karmik etc are being implemented.

42. Sports

As a responsible Maharatna PSU, ONGC strongly supports the promotion of sports and sportsmen by offering employment opportunities and scholarships to sportspersons. Your Company’s sponsorship of various sporting associations, federations and events as well as support to develop sporting infrastructure has supported many sportspersons in bringing in accolades to the nation and the organization.

Some of the significant achievements of our sportspersons during the year were as follows:

(i) The ONGC’s 24 sportspersons (employees & scholarship) represented country and brought laurels for the country by winning 14 medals in Asian Games 2023 at Hangzhou, China.

a.    Hockey players Gurjant Singh, Mandeep Singh won Gold Medal in Men’s Hockey.

b.    Kabaddi player Ms. Pooja (Scholarship) won Gold medal in Women Kabaddi.

c.    Badminton player H S Prannoy won Bronze medal in Singles & Silver medal in team event.

d.    Chess players Vidit Gujarathi & Ms. Koneru Humpy won Silver medal in Team event.

e.    Shooting players Aishwarya Pratap Singh Tomar won two Gold, one Silver & one Bronze medal; Ms. Rythem Sangwan won Gold medal; Ms. Sift Kaur Samra won Gold & Silver medal; Vijay Veer Sidhu won Bronze Medal.

(ii) Other major Achievements:

•    Shiva Thapa won Gold Medal in 7^th Elite Men’s National Boxing Championships in December 2023 at Shillong.

•    Pankaj Advani won the IBSF World Billiards Championship in Doha, Qatar in November 2023.

•    Dhruv Sitwala won Silver Medal in Walter Lindrum Open Billiards Championship, Sydney, Australia in March 2024.

•    5 ONGC Scholarship Hockey players got selected to represent India in Junior Hockey world cup in December 2023 at Malaysia.

•    Ms. Khushboo Khan was selected for Junior World Cup held at Chile in December 2023.

•    4 ONGC Hockey Players won Gold medal representing Haryana at 37^th National Games held at Goa in November 2023.

•    ONGC Athletes on Scholarship won 4 Gold, 4 Silver, 4 Bronze in 37^th National Games 2023 held at Goa from 25 October to 9 November 2023.

•    S.P Sethuraman finished 2^nd in 1^st Bangalore International Open Chess Tournament in January 2024.

•    Deep Sengupta finished 3^rd in Hastings Masters Chess tournament, United Kingdom in December 2023.

•    Vishnu Vardhan won Doubles in ITF M25 World Tennis Tour, Delhi in March 2024.

•    S.P Sethuraman won 60^th National Chess Championship, Pune, August 2023

•    Abhinav Lohan won Gujarat Open PGTI Golf Tournament, March 2024.

•    Rajesh Narwal won the Silver Medal in 37th National Game, November 2023 and Gold Medal in Sr. National Kabaddi Championship, March 2024

•    Harmeet Desai won Gold medal in Men Singles in UTT National Ranking Table Tennis Championships, Vadodara, November 2023

(iii)    Recognitions and Awards in 2023-24

•    ONGC Scholarship players Aishwarya Pratap Singh (Shooting) & Ms. Antim Panghal (Wrestling) were conferred with Arjuna Award.

•    The total number of National Awardees in the organization stand at 63 (Padma Bhushan - 1, Khel Ratna - 2, Padma Shri - 6, Arjuna Award - 52, Dhyanchand Award - 2)

•    ONGC emerged as Champion Organisation and won the prestigious “Petroleum Ministers Trophy” for FY’24.

(iv)    ONGC Sports Scholarship

•    A total of 224 sports scholarships were awarded in 22 sports to talented boys & girls in 2023-24.

43.    Corporate Social Responsibility (CSR)

As one of India’s foremost Nation Builders, your Company is committed towards its social responsibility. The Annual Report on CSR activities is annexed as Annexure - E.

44.    Regulatory or Courts order

During FY’24, there was no order or direction of any court or tribunal or regulatory authority either affecting Company’s status as a going concern or which significantly affected Company’s business operations.

45.    Details of application made or any proceeding pending under the Insolvency

and Bankruptcy Code, 2016 during the year along with their status as at the end of the FY’24.

During FY’24, there was no application made and no proceeding was pending against the company, under the Insolvency and Bankruptcy Code, 2016.

46.    Details of one-time settlement with banks/ financial institutions

The company didn’t make one time settlement with banks/ financial institutions during the financial year.

47.    Material changes and commitments affecting financial position between the end of the financial year and date of the report

There have been no material changes and commitments which affect the financial position of the Company that have occurred between the end of the financial year to which the financial statements relate and the date of this report.

48.    Directors’ Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

a)    In the preparation of the annual accounts, the applicable accounting standards were followed and there was no material departures from the same;

b)    The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as on 31 March, 2024 and of the profit of the Company for the year ended on that date;

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

d)    The Directors had prepared the annual accounts of the Company on a ‘going concern’ basis;

e)    The Directors had laid down internal financial controls which were being followed by the Company and that such internal financial controls were adequate and were operating effectively; and

f)    The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

49.    Annual Return

Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act, 2013 Annual Return of the Company is placed at https://onacindia.com/web/ena/investors/ annual-return

50.    Particulars of Employees

Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued thereunder are not applicable.

The terms and conditions of the appointment of Wholetime Directors are subject to the applicable guidelines issued by the Department of Public Enterprises (DPE), Government of India.

51.    Audit Committee

In compliance with Section 177(8) of the Companies Act, 2013 and Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, 2010 the details regarding Audit Committee is provided under Corporate Governance Report which forms part of Annual Report.

There was no instance during FY’24, where the Board had not accepted any recommendation of the Audit Committee.

52.    Vigil Mechanism:

Your Company has established Whistle Blower Policy/ Vigil Mechanism to report genuine concerns about ethical behaviour, actual or suspected fraud, violation of Code of

conduct and also instances of leak of unpublished price sensitive information. The said vigil mechanism provides for adequate safeguards against victimization of persons who use the mechanism and has provision for direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases.

Policy of the Company may be accessed at https:// onacindia.com/web/ena/investors/policies

53. Vigilance Functions:

Your Company has a full-fledged Vigilance Department headed by Chief Vigilance Officer. The Department operates on the guidelines of Central Vigilance Commission on Vigilance management in Public Sector Enterprises and is guided further by instructions issued by the Department of Personnel and Training and MoPNG from time to time. Vigilance Department of your company is now ISO 9001:2015 compliant and also holder of prestigious Anti Bribery Management System (ABMS) 37001 : 2016 certification from Intercert, USA.

Complaints are handled as per the complaint handling policies stipulated in Vigilance Manual issued by the Central Vigilance Commission. The prime focus of Vigilance activities has been Preventive and Participative Vigilance by having regular interaction with employees and other stakeholders to spread awareness among the masses.

54. Reporting of Fraud:

During FY’24, the Company has reported instances of suspected fraud by way of misappropriation of funds through payment against fictitious medical bills by certain employees and other personnel in collusion with external agencies and relevant details (refer Note 24.5 of standalone financial statements) are provided as under:

a)    Nature and Description of fraud: Payment against fictitious medical bills;

b)    Amount involved: '2.88 Million identified till date;

c)    Parties involved, if remedial action not taken: Not applicable; and

d)    Remedial action taken - Reported to Internal and external investigating agencies and investigation is under progress.

55.    Risk Management Policy and Implementation:

The Company has a Board approved Risk Management Policy. Risk framework and Risk portfolio are periodically monitored by the Risk Management Committee, Audit Committee and the Board.

56.    Auditors

The Statutory Auditors of your Company are appointed by the Comptroller and Auditor General of India (CAG). There were 5 Practicing Chartered Accountants firms / Limited Liability Partnership Firms namely Talati & Talati LLP V Sankar Aiyar & Co, J Gupta & Co LLP Laxmi Tripti & Associates and Manubhai & Shah LLP who were appointed as Joint Statutory Auditors of the Company for FY’24.

The Statutory Auditors have been paid a total remuneration of '55.28 Million towards audit fees, certification and other services. The above fees are inclusive of applicable service tax/ GST but exclusive of re-imbursement of travelling and out of pocket expenses.

Auditors’ Report on the Accounts

Statutory Auditors Reports and the comments of CAG on standalone and consolidated accounts of the Company are placed along with respective financial statements for FY’24. There is no qualification in the Statutory Auditors Reports on the Financial Statements of the Company for FY’24. Further, Comptroller & Auditor General of India (C&AG) in its Supplementary Audit under Section 143(6) read with Section 129(4) of the Companies Act, 2013, has provided “Nil” comments in Consolidated and Standalone Financial Statements for FY’24. The comments of Comptroller & Auditor General of India (C&AG) form part of this Report and is attached as Annexure - F.

57.    C&AG Audit on other matters:

The C&AG conducts audits of various nature viz. Performance Audit, Thematic Audit, Compliance Audit, Follow-up Audits, etc.

As at 31 March 2024, there are twenty one published C&AG reports/paras of previous years, pending at various stages. These are related to Payment of Stagnation Relief, Non-recovery of Perquisite Tax, Payment towards Encashment of Half Pay Leave/Earned Leave, IT Audit on FI-CO Module of SAP Loss of Interest due to Inordinate Delay in Receipt of Share of Gas Transportation Charges, Delay in Appraisal and Non-Monetisation of the Discoveries in KG-DWN-98/2 Block, Non Achievement of objective of Acquiring Coal Bed Methane (CBM) Blocks, Failure to obtain the Share of Cost of Immediate Support Vessels purchased by ONGC for Security of Offshore Assets from private Exploration and Production (E&P) Operators, Nonrecovery of pending Cash Calls, Construction of Toilets in Schools by CPSEs, Loss of Returns to ONGC due to Adoption of Financing Mechanism to Maintain the Status of OPaL as a Non-Public Sector Undertaking, Avoidable Payment of Equipment Standby Rentals, Water Injection Operations in Western Offshore, Loss due to Flaring of High Pressure Gas, Management of Spectrum assigned on administrative basis to Government Departments/ Agencies, etc.

These Audit Paras have been suitably replied and the same are under review of MoPNG or C&AG.

58.    Maintenance of Cost Records and details of Cost Auditor(s):

The Company is maintaining the Cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.

There were 6 cost accountants firms, namely M/s. ABK & Associates, M/s. Sanjay Gupta & Associates, M/s. Rao, Murthy & Associates, M/s Shome and Banerjee, M/s Dhanajay V Joshi & Associates and M/s Dewanji & Co. appointed by the Board as Joint Cost Auditors of the Company for FY’24. Necessary cost audit report shall be prepared by the said auditors and filed with the Central Government as per requirements under the Companies Act, 2013.

59.    Secretarial Audit

Your Company had engaged M/s JMC & Associates, Practicing Company Secretaries as Secretarial Auditors for FY’24. Secretarial Audit Report is annexed as Annexure-G.

Reply of management to the qualifications made in the Secretarial Audit Report are as under:

Board Composition:

The Company, being a CPSE, composition of its Board of Directors is the prerogative of the President of India as provided under the Articles of Association of the Company. There was shortage of one Independent Director during 05 May 2023 to 31 January 2024. The Company was fully compliant as on 31 March 2024.

60.    Changes in Board of Directors and Key Managerial Personnel

Being a Government Company, policy on directors’ appointment and remuneration is not applicable and also evaluation of their performance is exempted under the Companies Act, 2013.

Details of Appointments/ Cessation of Directors and KMPs:

Changes in the Board/ Key Managerial Personnel of the Company during the year and up-to date of the Report are as under:

•    Shri Manish Patil, was appointed as Director (HR) w.e.f. 05 May 2023. Mr. Patil was entrusted with the additional charge of Director (Finance) during 01 February 2024 to 01 July 2024.

•    Shri Vivek Chandrakant Tongaonkar took charge as Director Finance & CFO of the Company w.e.f. 02 July 2024.

•    Smt. Pomila Jaspal ceased to be Director (Finance) and Chief Financial Officer (CFO) on the Board w.e.f. 01 February 2024.

•    Shri Devendra Kumar was appointed as Chief Financial Officer (CFO), Key Managerial Personnel of the Company during 20 June 2024 to 02 July

2024. Upon appointment of Shri Vivek Chandrakant Tongaonkar as Director (Finance) and CFO, he ceased to be CFO of the Company.

• Shri K. C. Ramesh was appointed as Chief Financial Officer (CFO), Key Managerial Personnel of the Company w.e.f. 10 February 2024. Further, consequent upon his superannuation, he ceased to be CFO of the Company w.e.f. 01 June 2024.

The Board placed on record appreciation for commendable contribution made by Smt. Pomila Jaspal and Shri K. C. Ramesh during their tenure in the Company.

61.    Declaration by Independent Directors:

The Company has received declaration from Independent Directors confirming that they met the criteria prescribed under the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

62.    Acknowledgement

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

Your Directors thank all stakeholders, business partners and all members of the ONGC Family for their faith, trust and confidence reposed in the Board. Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels to ensure that the Company continues to sustain, grow and excel.

On behalf of the Board of Directors

Sd/-

Place: New Delhi    (Arun Kumar Singh)

Date: 05 August 2024    Chairman & CEO