Oil and Natural Gas : Audited Financial Results for the Financial Year Ended 31st March, 2022

OIL AND NATURAL GAS CORPORATION LIMITED

COMPANY SECRETARIAT

CS/ONGC/SE/2022-23	28.05.2022
National Stock Exchange of India Ltd.	BSE Limited
Listing Department	Corporate Relationship Department
Exchange Plaza	Phiroze Jeejeebhoy Towers
Bandra-Kurla Complex, Bandra (E)	Dalal Street, Fort
Mumbai - 400 051	Mumbai - 400 001
Symbol-ONGC; Series - EQ	BSE Security Code No.- 500312

Sub: Outcome of the Board Meeting

Ref.: Related intimation vide even number dt. 12.05.2022

Madam/ Sir,

Pursuant to provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that the Board of Directors, inter-alia, decided the following agenda at the meeting held today;

1. Approved the Statement of Audited Financial Results (Standalone and Consolidated) for the Quarter/ Year ended 31st March, 2022;
2. Noted the Auditors' Report with unmodified opinion on Audited Financial Results (Standalone and Consolidated) for the Quarter/ Year ended 31st March, 2022; and
3. Recommended final dividend of `3.25/- per equity share of `5/- each i.e. 65% for the Financial Year 2021-22, subject to declaration by the members at the ensuing Annual General Meeting.
4. Participation by the Company in Corporate Insolvency Resolution Process of JBF Petrochemicals Ltd as consortium of the Company and Indian Oil Corporation Limited.
5. Appointed M/s JMC & Associates, Practicing Company Secretaries as the Secretarial Auditors of the Company for financial year 2021-22.

The said meeting of Board commenced at 16:30 hrs and concluded at 19:35 hrs.

Thanking you,

Yours faithfully,

For Oil and Natural Gas Corporation Ltd

RAJNI KANT

Digitally signed by

RAJNI KANT Date: 2022.05.28 20:37:34 +05'30'

(Rajni Kant)

Company Secretary & Compliance Officer

End.: Financial Results A/a (37 Pgs.)

Regd. office: Plot No 5A-5B, Nelson Mandela Road, Vasant Kunj, New Delhi-110070

Phone: [phone] EPABX : 26750111, 26129000 FAX : [phone] CIN: L74899DL1993GOI054155 Website: www.ongcindia.com Email: [e-mail]

G M Kapadia & Co.	R Gopal & Associates
Chartered Accountants	Chartered Accountants
1007 Raheja Chambers,	1/1A, Vansittart Row,
213 Nariman Point,	Kolkata -700001
Mumbai -400021
Kalani & Co.	R.G.N. Price & Co.
Chartered Accountants	Chartered Accountants
703, VII Floor,	Simpsons Buildings,
Milestone Building,	861, Anna Salai,
Gandhi Nagar Crossing,	Chennai -600002
Tonk Road, Jaipur-302015

SARC & ASSOCIATES Chartered Accountants SARC Towers, D-191, Okhla Industrial Estate, Phase I, New Delhi -

110020

S Bhandari & Co.

Chartered Accountants

P-7, Tilak Marg,

C-Scheme,

Jaipur-302005

Independent Auditors' Report on Quarterly and Year to Date Audited Standalone Financial

Results of OIL AND NATURAL GAS CORPORATION LIMITED pursuant to the Regulation 33 and 52 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To the Board of Directors of

Oil and Natural Gas Corporation Limited

Report on the Audit of the Standalone Financial Results

Opinion

We have audited the accompanying Statement of Standalone Financial Results of Oil and Natural Gas Corporation Limited ("the Company") for the quarter ended March 31, 2022 and the year to date

results for the period from April 1, 2021 to March 31, 2022 ("the Statement"), attached herewith, being

submitted by the company pursuant to the requirement of Regulation 33 and 52 of the SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, these Standalone Financial Results:

1. are presented in accordance with the requirements of Regulation 33 and 52 of the Listing Regulations in this regard; and
2. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards (Ind AS) and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information for the quarter ended March 31, 2022 as well as year to date results for the period from April 1, 2021 to March 31, 2022.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further

described in the "Auditor's Responsibilities for the Audit of the Standalone Financial Results" section

of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

G.M. Kapadia & Co.	R Gopal & Associates	SARC & Associates
Chartered Accountants	Chartered Accountants	Chartered Accountants
Kalani & Co.	R.G.N. Price & Co.	S Bhandari & Co.
Chartered Accountants	Chartered Accountants	Chartered Accountants

Emphasis of Matter

We draw attention to the following matters in the Notes to the Statement: -

1. Note No. 8, which explains that certain exploratory fields have been identified by DGH, MoPNG, GOI for bidding under DSF III, after considering the value of such fields as Nil. As these fields need to be handed over to the successful bidders, pending finalization of mechanism of recovery of carrying cost of these fields, an impairment provision of Rs. 1,255 Crore has been made during the year towards carrying value of the land and exploratory wells in these fields.
2. Note No. 7, which states that pursuant to Section 115BAA of the Income Tax Act, 1961, during the current year, the Company has decided to avail the option of lower tax rate with effect from the financial year 2020-21. Accordingly, the Company has recognised provision for tax expenses in the financial statements for the year ended March 31, 2022 and re-measured its net Deferred Tax liabilities on the basis of the provision prescribed in the said section. The net impact due to availing the said option has resulted in decrease in deferred tax by Rs. 9,091 Crore (of which Rs. (-) 138 Crore has been accounted in Other Comprehensive Income) and decrease in current tax by Rs. 2,802 Crore (including Rs. 164 Crore relating to earlier years).
3. Note No.4, wherein it is stated that Directorate General of Hydrocarbons (DGH) had raised a demand on all the JV partners under the Production Sharing Contract with respect to Panna-Mukta and Mid and South Tapti contract areas (PMT JV), being BG Exploration and Production India Limited
   (BGEPIL) and Reliance Industries Limited (RIL) (together "the Claimants") and the Company (all three together referred to as "Contractors"), towards differential GOI share of Profit Petroleum and
   Royalty alleged to be payable by contractors pursuant to Government's interpretation of the Final
   Partial Award of Arbitral Tribunal (40% share of the Company amounting to USD 1624.05 million equivalent to Rs 12,302 Crore, including interest upto 30th November, 2016). Subsequent to Tribunal Orders dated October 12, 2016, DGH vide letter dated May 25, 2017, June 4, 2018 and January 14, 2019 had asked contractor for re-casting of accounts of the PMT JV and for remitting the respective PI share of balance dues including interest till the date of remittance. As the Company is not a party to the arbitration, the details of the proceedings of arbitration and copy of the order of London High Court are not available with the company. The Company has responded that The English high Court has delivered its final verdict on May 2, 2018 following which the Arbitral Tribunal re-considered some of its earlier findings from the 2016 FPA (Revised Award); The Government of India and JV Partners have challenged parts of the Revised Award before English court. On February 12, 2020, the English Court passed a verdict favouring the challenges made by BGEPIL and RIL and also remitted the matter in the Revised Award back to Arbitral Tribunal for reconsideration. In January 2021, the Tribunal issued a verdict favouring BGEPIL/RIL on the remitted matter, which has been challenged by the GOI before the English Court. Pending finalization of the decision of the Arbitral Tribunal, the Company has indicated in their letters to DGH that the final recasting of the accounts is premature and the issues raised by DGH may be kept in abeyance and therefore no provision for the same has been considered necessary and has been considered as contingent liability.
4. Note No. 5, with respect to ongoing disputes/demands raised on various work centres of the company under Service Tax (ST) and Goods & Service Tax (GST) in respect of ST and GST on Royalty levied on Crude Oil and Natural Gas. Based on the legal opinion, the company has disputed such levies and contesting the same at various forums. The estimated amounts under disputes as worked out towards ST and GST (including interest and penalty upto March 31, 2022) of Rs 4,017 Crore and Rs. 10,273 Crore respectively (Total Rs 14,290 Crore), has been considered as contingent liability.

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G.M. Kapadia & Co.	R Gopal & Associates	SARC & Associates
Chartered Accountants	Chartered Accountants	Chartered Accountants
Kalani & Co.	R.G.N. Price & Co.	S Bhandari & Co.
Chartered Accountants	Chartered Accountants	Chartered Accountants

As a measure of abundant caution, the company has deposited ST and GST along with interest under protest amounting to Rs 1,352 Crore and 7,404 Crore and respectively (Total Rs 8,756 Crore).

Our opinion on the Statement is not modified in respect of these matters.

Management's Responsibilities for the Statement

These quarterly Standalone Financial Results as well as the year to date Standalone Financial Results have been prepared on the basis of the reviewed Standalone Financial Results for the nine-month period ended December 31, 2021, the audited Standalone Financial Statements as at and for the year ended March 31, 2022.

The Company's Board of Directors are responsible for the preparation and presentation of the Statement that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 and 52 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Results, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Statement

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone Financial Results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,

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G.M. Kapadia & Co.	R Gopal & Associates	SARC & Associates
Chartered Accountants	Chartered Accountants	Chartered Accountants
Kalani & Co.	R.G.N. Price & Co.	S Bhandari & Co.
Chartered Accountants	Chartered Accountants	Chartered Accountants

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of financial statements on whether the company has adequate Internal Financial Controls with reference to Financial Statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
  to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Standalone Financial Results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Results, including the disclosures, and whether the Standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with Those Charged With Governance (TCWG) 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.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, related safeguards.

Other Matters

1. We have placed reliance on technical/commercial evaluation by the management in respect of categorization of wells as exploratory, development, producing and dry well, allocation of cost incurred on them, production profile, proved (developed and undeveloped)/ probable hydrocarbon reserves, and depletion thereof on Oil and Gas Assets, impairment, liability for decommissioning costs, evaluation and timelines for completion of projects under progress, liability for NELP and nominated blocks for under performance against agreed Minimum Work Programme.
2. The Statement include the Company's share in the total value of assets, liabilities, expenditure and income of 166 blocks under New Exploration Licensing Policy (NELPs)/ Hydrocarbon Exploration and Licensing Policy (HELPs) / Discovered Small Fields (DSFs) / Open Acreage Licensing Policy (OALPs) and Joint Operations (JOs) accounts for exploration and production out of which:
3. 1. 9 NELPs/ HELPs/ JOs accounts have been certified by other Chartered Accountants. In respect of these 9 NELPs/ HELPs/ JOs, Standalone Financial Results include proportionate

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