OIL AND NATURAL GAS CORPORATION LIMITED

COMPANY SECRETARIAT
ONGC/CS/SE/2023-24 11.08.2023
National Stock Exchange of India Ltd. BSE Limited
Listing Department Corporate Relationship Department
Exchange Plaza Phiroze Jeejeebhoy Towers
Bandra-Kurla Complex Dalal Street, Fort
Bandra (E) Mumbai – 400 001
Mumbai – 400 051 BSE Security Code No
Equity : 500312
Symbol-ONGC; Series – EQ NCD : 959844, 959881, 960147, 960406

Sub: Outcome of the Board Meeting

Madam/ Sir,
This is in continuation to our letter dated 02.08.2023, it is hereby informed that the Board of Directors of the Company at
its meeting held today i.e.11.08.2023, has inter-alia considered and approved Unaudited Financial Results (Standalone
and Consolidated) for the Quarter ended 30th June, 2023, the subject intimation in terms of applicable provisions of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations) are as under:-

1. Unaudited Financial Results (Standalone and Consolidated) for the quarter ended 30 th June 2023
Pursuant to Regulation 33 & 52 of SEBI Listing Regulations, a Statement of Unaudited Financial Results (Standalone
and Consolidated) along with limited review report of the Auditors thereon for the Quarter ended 30 th June, 2023 is
enclosed.
2. Disclosure under Regulation 54(3) of SEBI Listing Regulations

Company has issued only Non-Convertible Debentures (NCDs), hence submission of Security Cover under Regulation 54
of SEBI Listing Regulations is not applicable.
3. Disclosure under Regulation 52(7) & 52(7A) of SEBI Listing Regulations

The Company had issued four series of Non-Convertible Debentures (NCDs) aggregating to 4,140 Crore during
FY 2020-21 for which funds were fully utilized for the intended purpose during the same year. Statements of “NIL”
deviation were also filed on 13.11.2020 and 24.06.2021.Accordingly, submission of Statements of utilisation/ deviation in
the use of proceeds of NCDs under Regulation 52(7) and 52(7A) of SEBI Listing Regulations is not applicable.
The Meeting of Board of Directors commenced at 17:45 hrs and concluded at 20:30 hrs.

This is for your information and record please.

Thanking you,
Yours faithfully,
For Oil and Natural Gas Corporation Ltd
Digitally signed by

RAJNI KANT RAJNI KANT

Date: 2023.08.11
20:43:06 +05'30'

Rajni Kant
Company Secretary & Compliance Officer
End.: As Above (30 Pages)

Regd. Office: Plot No 5A-5B, Nelson Mandela Marg, Vasant Kunj, New Delhi-110070
Phone: 011-2675 4073, 011-2675 4085 EPABX : 2675 0111, 2629000 FAX : 011-26129081
CIN: L74899DL1993GOI054155 Website: www.ongcindia.com Email: [email protected]
 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants
SARC Towers, D-191, 703, VII Floor, Simpsons Building,
Okhla Industrial Estate, Milestone Building, 861, Anna Salai,
Phase I, New Delhi — 110020 Gandhi Nagar Crossing, Chennai - 600 002
Tonk Road, Jaipur-302015

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants
P-7, Tilak Marg, YMCA Building
C-Scheme, Mezzanine Floor,
Jaipur-302005 25, Jawaharlal Nehru Road,
Kolkata —700 087

INDEPENDENT AUDITORS' LIMITED REVIEW REPORT ON THE UNAUDITED STANDALONE FINANCIAL

RESULTS FOR THE QUARTER ENDED JUNE 30, 2023

TO THE BOARD OF DIRECTORS OF

OIL AND NATURAL GAS CORPORATION LIMITED

1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of Oil
and Natural Gas Corporation Limited ("the Company") for the quarter ended June 30, 2023
(hereinafter referred to as "the Statement" and signed by us for the purpose of identification), being
submitted by the Company pursuant to the requirements of Regulation 33 and 52 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 as amended ("the Regulations").

2. This Statement, which is the responsibility of the Company's Management and approved by the
Company's Board of Directors, has been prepared in accordance with the recognition and
measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial
Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 as amended, read
with relevant rules issued thereunder and other accounting principles generally accepted in India.
Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements
(SRE) 2410, "Review of Interim Financial information performed by the Independent Auditor of the
Entity" issued by the Institute of Chartered Accountants of India. This Standard requires that we plan
and perform the review to obtain moderate assurance as to whether the -Statement is free of
material misstatement. A review is limited primarily to inquiries of Company personnel and analytical
procedures applied to financial data and thus provide less assurance than an audit. We have not
performed an audit and accordingly, we do not express an audit opinion.

4. Based on our review conducted as above, nothing has come to our attention that causes us to believe
that the accompanying Statement read with Notes thereon, prepared in accordance with applicable
Indian Accounting Standards specified under Section 133 of the Companies Act, 2013 as amended,
read with relevant rules issued thereunder and other recognised accounting practices and policies,

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP .1 Gupta & Co LLP

Chartered Accountants Chartered Accountants

has not disclosed the information required to be disclosed in terms of the Regulations, including the
manner in which it is to be disclosed, or that it contains any material misstatement.

5. Emphasis of Matter
We draw attention to the following matters in the Notes to the Statement: -

(I) 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 Government of
India (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. 13,327 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 English Commercial Court (London
High Court) are not available with the company. The Company has informed that the English
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. The English
Court had delivered its verdict on June 9, 2022 dismissing the challenge made by GOI. The GOI
filed an appeal against the English Court verdict of June 9, 2022 that was rejected by the English
courts in August 2022.

Based on the information shared by BGEPIL, the GOI has also filed an execution petition before
the Hon'ble Delhi High Court seeking enforcement and execution of the October 12, 2016 FPA.
BGEPIL / RIL contend that GOI's execution petition is not maintainable and have opposed the
reliefs sought by the GOI under the said petition. The hearings in the matter before the Hon'ble
Delhi High Court concluded on August 4, 2022. The Delhi High Court issued a judgment dated
June 2, 2023 that the Government's Execution Petition in respect of the 2016 FPA is premature,
not maintainable and stands dismissed.

Pending finalization of the decision of the Arbitration Tribunal, the Company has indicated in
their letters to DGH that the final recasting of the accounts is premature and the issues raised

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

by DGH may be kept in abeyance and therefore no provision for the demand raised by DGH,
amounting to US$ 1,624.05 million equivalent to Rs. 13,327 Crore has been considered
necessary and has been treated as contingent liability.

(ii) 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 is contesting the same at various forums. However, as an abundant
caution, the Company has deposited the disputed Service Tax and GST on royalty along-with
interest under-protest amounting to 12,191 Crore up to Jun 30, 2023.

As mentioned in the said note, the Company continues to contest such disputed matters before
various forums based on the legal opinion as per which the Service Tax/GST on Royalty in respect
of Crude oil and Natural gas is not applicable. However, considering the pending final decision
in a similar matter by the Nine Judges' Bench of Hon'ble Supreme Court, which is yet to be
constituted and keeping in view the considerable time elapsed, during the quarter and year
ended March 31, 2023, the company made a provision towards these disputed taxes as a
prudent and conservative practice in respect of the nominated fields, as per agreed terms in JV
blocks where there are no disputes amongst the JV partners and to the extent of company's
participating interest in the JV blocks where there are disputes amongst the JV partners.
Accordingly, during the quarter and year ended March 31, 2023, the Company had provided
12,107 Crore towards disputed taxes for the period from April 1, 2016 to March 31, 2023
together with interest thereon up to March 31, 2023 towards the ST/GST on Royalty. Further, a
similar provision of 641 Crore has also been made during the quarter ended June 30, 2023.

As further mentioned in the note, based on the legal opinions, with respect to JV blocks where
there are disputes with JV partners, as per which the Service Tax/GST, if applicable on royalty,
will required to be discharged by the JV partners in their respective share of participating
interest in the JV blocks, and pending resolution of the disputes, other partners' share of
disputed ST/GST on Royalty in such JV blocks together with interest upto June 30, 2023
amounting to 4,574 Crore has not been considered for provision and the same has been
considered as contingent liability. The remaining disputed demand received by the Company
towards penalty and other differences i.e. 1,865 Crore has also been considered as contingent
liability.

As mentioned in the note, considering the experts' opinion, during the previous FY 2022-23, the
aforesaid amount deposited under protest has been claimed in the Income Tax return / in the
ongoing assessment & appellate proceedings, as an allowable expenditure under section 37
read with section 43B of the Income Tax Act, 1961 for the relevant earlier assessment years and
also towards the current tax for the year ended March 31, 2023. The same has also been
considered as an allowable expenditure while calculating the current tax for the quarter ended

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LIP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

June 30, 2023. The Company has also created deferred tax asset amounting to 90 Crore till
June 30, 2023 in respect of the amounts yet to be deposited against the provision made for
disputed taxes for the above periods.

(iii) Note No. 6, wherein it is mentioned that considering the Gazette Notification dated 11.07.2022,
the Ministry of Petroleum & Natural Gas (MoP&NG) Gol notified de-regulation of sale of
domestically produced crude oil. Para 3 of the said Notification provides for valuation of royalty,
cess, other statutory levies and contractual payments based on the actual sales price or the price
of the Indian Basket of crude oil, as calculated by Government nominated Agency on monthly
basis, whichever is higher. Effective from October 1, 2022, the company started paying OID cess
on the higher of the two prices, which continued till May 31, 2023. The company reviewed the
liability for payment of OID Cess as per the provisions of the Oil Industry (Development) Act 1974
(OID Act) and also based on a legal opinion, and it was concluded by the company that OID cess
being a duty of excise, in terms of OID Act it is payable on the transaction value (actual sale
price). As a result the differential OID cess amounting to Rs 280 Crore for the period from
October 1, 2022 to May 31, 2023 (Rs 244 Crore till March 31, 2023) was adjusted by the company
while making the payment of OID cess for the month of June 2023. The liability for the month
of June 2023 was also worked out on the basis of transaction value, which has resulted in
lowering of liability by Rs. 24 crore. The matter has been taken up by the company with the
MOPNG for clarification in terms of the above referred notification, and pending clarification on
the matter, the company continues to reckon the liability of OID cess on the transaction value.

Our conclusion on the Statement is not modified in respect of the above matters.

6. Other Matters
(i) We have placed reliance on technical/commercial evaluation by the management in respect of
categorization by the Company of wells as exploratory, development, producing and dry wells,
allocation of costs incurred on them, proved (developed and undeveloped) / probable
hydrocarbon reserves and depletion thereof on Oil and Gas Assets, impairment, liability for
decommissioning costs, liability for NELP/ HELP and nominated blocks for under performance
against agreed Minimum Work Programme.

(ii) The Statement includes the Company's proportionate share in the total value of expenditure
and Income of 194 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 25 blocks have not been reviewed by us, the details of which are as under: -

o 1 block has been certified by other Chartered Accountant. In respect of this block, the
Statement includes revenue amounting to Rs. 1,702.29 Crore and profit before tax
including other comprehensive income amounting to Rs. 541.18 Crores respectively for

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

the quarter ended June 30, 2023. Our conclusion is solely based on the certificate of the
other Chartered Accountant.

o 24 blocks have been certified by the management. In respect of these 24 blocks, the
Statement includes revenue amounting to Rs. 316.66 Crore and profit/(loss) before tax
including other comprehensive income amounting to Rs. (9.76) Crores respectively for
the quarter ended June 30, 2023. Our conclusion is solely based on management certified
accounts in respect of these blocks.

(iii) The Statement includes comparative figures for the quarter ended Jun 30, 2022, reviewed by
the joint auditors of the Company, two of whom were the predecessor audit firms, where they
had expressed an unmodified conclusion vide their report dated August 12, 2022 on such
Standalone Financial Results.

Our conclusion on the Statement is not modified in respect of the above matters.

For SARC & ASSOCIATES For Kalani & Co For R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm R~Vo.:
rt 006085N Firm- o.: 000722C Firm Reg. No.: 002785S

(Pankaj Sharma) (Vika upta) (G. Surendranath Rao)

Partner (M. No. 086433) Partne (M. No. 077076) Partner (M. No. 022693)
UDIN: 23086433BGZHXN6102 UDIN: 23077076BGZDBV7732 UDIN: 23022693BGRKSM4407

For S. Bhandari & Co LLP For J Gupta & Co LLP

Chartered Accountants Chartered Accountants
Firm Reg. No.: Firm Reg. No.:
000560C/C400334 314010E/E300029

(Virendra Rai) \-- (Abhishek Raj)

Partner (M. No. 015780) Partner (M. No. 302648)
UDIN: 23015780BGXELC2452 UDIN: 23302648BGYBFA7976

Place: New Delhi

Dated: August 11, 2023

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 3ftwazitert OIL AND NATURAL GAS CORPORATION LIMITED
CIN No. L74899DL1993G01054155
(AP Regd.Office : Plot No. 5A- 5B, Nelson Mandela Road, Vasant Kunj, New Delhi, South West Delhi - 110070
onac Tel: 011-26754002, Fax: 011-26129091, E-mail: [email protected]

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2023
? In Crore unless otherwise stated
Financial results for

SI. No. Particulars Quarter ended Quarter ended Quarter ended Year ended
30.06.2023 31.03.2023 30.06.2022 31.03.2023
Unaudited Audited Unaudited Audited

I Revenue from operations 33,814.33 36,292.55 42,320.72 1,55,517.32

II Other income 1,611.85 1,928 11 757.67 7,626.55
III Total income (1+11) 35,426.18 38,220.66 43,078.39 1,63,143.87

IV EXPENSES
Cost of materials consumed* 1,009.42 1,197.83 748.23 3,921.31
Purchase of stock-in-trade -
Changes in inventories of finished/ semi finished goods and work in progress
212.00 123.39 (290 06) (481 67)
Employee benefits expense" 721.95 778.47 710.72 2,785.09
Statutory levies 7,451.33 8,895.69 10,614.75 45,284.21
Exploration costs written off
a. Survey Costs 1,206.79 1,748.68 759.92 3,939.66
b. Exploratory well Costs 499.03 2,719.90 439.37 6,054.79
Finance costs 1,007.70 707.69 635.56 2,699.60
Depreciation, depletion, amortisation and impairment 4,991.17 4,835.90 4,510 12 16,795.16
Other expenses 4,966.21 8,957.17 4,606.81 22,515.28
Total expenses (IV) 22,065.60 29,964.72 22,735.42 1,03,513.43

V Profit before exceptional items and tax (III-IV) 13,360.58 8,255.94 20,342.97 59,630.44
VI Exceptional items (9,235.11) (9,235.11)

VII Profit before tax (V+VI) 13,360.58 (979.17) 20,342.97 50,395.33

VIII Tax expense:

(a) Current tax relating to:
- current year 3,333.00 2,887.00 5,156.00 12,620.00
- earlier years (0.88) (2,365.58) (2,844.82)
(b) Deferred tax 13.42 (1,252.89) (18.88) 1,791.28
Total tax expense (VIII) 3,345.54 (731.47) 5,137.12 11,566.46

IX Profit for the period (VII-VIII) 10,015.04 (247.70) 15,205.85 38,828.87

X Other comprehensive income (OCI)

(a) Items that will not be reclassified to profit or loss
(i) Re-measurement of the defined benefit obligations (11.67) (24 93) 43.27 (46.38)
- Deferred Tax 2.94 6.27 (10.89) 11.67
(ii) Equity instruments through other comprehensive income 2,684.54 578.13 (1,458.36) (235.62)
- Deferred Tax (238.46) (50.92) (97.55) (248.32)
Total other comprehensive income (X) 2,437.35 508.55 (1,623.53) (518.65)

XI Total comprehensive income for the period (IX+X) 12,452.39 260.85 13,682.32 38,310.22

XII Paid-up Equity Share Capital (Face value of ? 51- each) 6,290.14 6,290.14 6,290.14 6,290.14
X111 Net worth" 2,70,298.22 2,57,845.84 2,50,830.39 2,57,845.84
XIV Paid up Debt Capital / Outstanding Debts 8,425.76 7,218.88 9,090.23 7,218.88
XV Other equity 2,64,008.08 2,51,555.70 2,44,540.25 2,51,555.70
XVI Capital Redemption Reserve 126.48 126.48 126.48 126.48
XVII Debenture Redemption Reserve* Not applicable Not applicable Not applicable Not applicable
XVIII Earnings Per Share (Face value of Z 5/- each) - not annualised
(a) Basic (Z) 7.96 (0.20) 12.09 30.86
(b) Diluted (?) 7.96 (0.20) 12.09 30.86
XIX Debt Equity Ratio" 0.03 0.03 0.04 0.03
XX Debt Service Coverage Ratio" 180.57 100.71 290.52 194.88
)0(1 Interest Service Coverage Ratio" 180.57 100.71 290.52 194.88
XXII Current Ratio" 1.54 1.29 1.36 1.29
XXIII Long Term Debt to Working Capital" 0.26 0.45 0.45 0.45
XXIV Bad debts to Account Receivable Ratio" - - -
)(XV Current Liability Ratio" 0.33 0.38 0.39 0.38
XXVI Total Debts to Total Assets" 0.02 0.02 0.03 0.02
XXVII Debtors Turnover" 3.24 3.51 3.45 14.11
XXVIII Inventory Turnover" 4.11 4.34 5.25 19.22
XXIX Operating Margin (%)w 42.49 24.70 49.57 40.08
)00( Net Profit Margin (%)w 29.62 (0.68) 35.93 24.97

Represents consumption of raw materials and stores & spares. Employee benefits expense shown above is net of allocation to different activities,
...$ comprises non-current and current borrowings. # Debenture Redemption Reserve is not required to be created by the company as per Companies (Share Capital

V
and Debentures) Rules, 2014, as amended. ## Refer Note No.8.

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CIN No. L74899DL1993G01054155
Regd.Office : Plot No. 5A- 5B, Nelson Mandela Road, Vasant Kunj, New Delhi, South West Delhi — 110070
oncc Tel: 011-26754002, Fax: 011-26129091, E-mail: [email protected]

STANDALONE SEGMENT WISE REVENUE, RESULTS, ASSETS & LIABILITIES

(7 in Crore)

Quarter ended Quarter ended Quarter ended Year ended

SI. Particulars
30.06.2023 31.03.2023 30.06.2022 31.03.2023
No.
Unaudited Audited Unaudited Audited
1 Segment Revenue
Revenue from Operations
a) Offshore 23,076.86 25,013.33 27,990.38 1,04,113.81
b) Onshore 10,737.47 11,279.22 14,330.34 51,403.51
Total 33,814.33 36,292.55 42,320.72 1,55,517.32
Less: Inter Segment Operating Revenue - - - _.
Revenue from operations 33,814.33 36,292.55 42,320.72 1,55,517.32
2 Segment Result Profit(+)/Loss(-) before tax and interest from each segment
a) Offshore 11,151.63 3,052.52 16,036.50 43,009.60
b) Onshore 2,378.27 (3,589.52) 4,890.27 6,183.02
Total 13,529.90 (537.00) 20,926.77 49,192.62
Less:
i. Finance Cost 1,007.70 707.69 635.56 2,699.60
ii. Other unallocable expenditure net of unallocable income. (838.38) (265.52) (51.76) (3,902.31)
Profit before Tax 13,360.58 (979.17) 20,342.97 50,395.33
3 Segment Assets
a) Offshore 1,67,074.76 1,49,983.01 1,52,330.71 1,49,983.01
b) Onshore 73,859.76 73,452.65 75,693.03 73,452.65
c) Other Unallocated 1,54,421.60 1,43,601.43 1,26,420.71 1,43,601.43
Total 3,95,356.12 3,67,037.09 3,54,444.45 3,67,037.09
4 Segment Liabilities
a) Offshore 69,924.62 55,199.68 51,014.44 55,199.68
b) Onshore 17,897.55 17,639.48 16,363.52 17,639.48
c) Other Unallocated 37,235.73 36,352.09 36,236.10 36,352.09
Total 1,25,057.90 1,09,191.25 1,03,614.06 1,09,191.25

Note:- Above segment information has been classified based on Geographical Segment.
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Notes:

1. The above financial results of the Company for the quarter ended June 30, 2023 have been
reviewed and recommended by the Audit Committee and approved by the Board of Directors
in their respective meetings held on the August 11, 2023.

2. The financial results for the quarter ended June 30, 2023 have been reviewed by the Statutory
Auditors as required under Regulation 33 and 52 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.

3. The figures for the quarter ended March 31, 2023 are the balancing figures between audited
figures in respect of the full financial year 2022-23 and the year-to-date figures upto the third
quarter of 2022-23, which were subjected to limited review.

4. The Company, with 40% Participating Interest (PI), was a Joint Operator in Panna-Mukta and
Mid and South Tapti Fields along with Reliance Industries Limited (RIL) and BG Exploration
and Production India Limited (BGEPIL) each having 30% PI, (all three together referred to as
"Contractors") signed two Production sharing Contracts (PSCs) with Government of India
(Union of India) on December 22, 1994 for a period of 25 years. The PSCs for Panna Mukta
and Mid & South Tapti have expired on December 21, 2019. In terms of the Panna Mukta
Field Asset Handover Agreement, the Contractors of PMT JV are liable for the pre-existing
liability.

In December 2010, RIL & BGEPIL (JV Partners) invoked an international arbitration
proceeding against the Union of India in respect of certain disputes, differences and claims
arising out of and in connection with both the PSCs .The Ministry of Petroleum and Natural
Gas (MoP&NG), vide their letter dated July 4, 2011, had directed the Company not to
participate in the Arbitration initiated by the JV Partners (BGEPIL & RIL). MoP&NG has
also stated that the Arbitral Award would be applicable to the Company also as a constituent
of the Contractor for both the PSCs.

Directorate General of Hydrocarbons (DGH), vide letter dated May 25, 2017 had informed the
Company that on October 12, 2016, a Final Partial Award (FPA) was pronounced by the
Tribunal in the said arbitrations. As informed by BGEPIL that on issues relating to the
aforesaid disputes, additional Audit Award on January 11, 2018, Agreement Case Award on
October 1, 2018 and Jurisdictional Award on March 12, 2019 were pronounced. However, the
details of proceedings of the FPA and other Orders are not available with the Company. DGH,
vide their letters dated May 25, 2017 and June 4, 2018, marked to the Contractors, had
directed the payment of differential Government of India share of Profit Petroleum and
Royalty alleged to be payable by Contractors pursuant to Government's interpretation of the
FPA (40% share of the Company amounting to US$ 1,624.05 million, including interest up to
November 30, 2016) equivalent to 13,327 Crore (March 31, 2023: 13,342 Crore). In
response to the letters of DGH, the JV partners (with a copy marked to all Joint Venture

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 Partners) had stated that demand of DGH was premature as the FPA did not make any money
award in favour of Government of India, since quantification of liabilities were to be
determined during the final proceedings of the arbitration. Further the award had also been
challenged before the English Commercial Court (London High Court). Based on the above
facts, the Company had also responded to the letters of DGH stating that pending finality of
the order, the amount due and payable by the Company was not quantifiable. In view of the
Company, if any changes are approved for increase in the Cost Recovery Limit (CRL) by the
Arbitral Tribunal as per the terms of the PSCs the liability to Government of India (GOI)
would potentially reduce.

The English 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
GOI 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. BGEPIL has informed that the Tribunal issued a verdict in January 2021,
favouring BGEPIL/RIL on the remitted matter, which was challenged by the GOI before the
English Court. The English Court delivered its verdict on June 9, 2022 dismissing the GoI's
challenges and upholding the Revised Agreements Award. The GOI filed an appeal against
the English Court verdict of June 9, 2022 that was rejected by the English courts in August
2022.

Based on the information shared by BGEPIL, the GOI has also filed an execution petition
before the Hon'ble Delhi High Court seeking enforcement and execution of the October 12,
2016 FPA. In January 2018, the Company along with the JV partners had filed an application
with MC for increase in CRL in terms of the PSCs. BGEPIL / RIL contend that GOI's
execution petition is not maintainable and have opposed the reliefs sought by the GOI under
the said petition. The hearings in the matter before the Hon'ble Delhi High Court concluded
on August 4, 2022. The Delhi High Court issued a judgment dated June 2, 2023 that the
Government's Execution Petition in respect of the 2016 FPA is premature, not maintainable
and stands dismissed.

The application has been rejected by MC. Pursuant to the rejection, the JV partners have filed
a claim with Arbitral Tribunal. One of the JV partners has further informed the Company that
the hearing before the Arbitral Tribunal has been partially heard during the quarter of October
— December 2021. Substantial hearings have taken place since 2021 in respect of the Cost
Recovery Limit increase applications filed by BGEPIL & RIL and an award is presently
expected by Q4 2023-24.

DGH vide letter dated January 14, 2019 has advised to the contractors to re-cast the accounts
for Panna-Mukta and Mid and South Tapti Fields for the year 2017-18. Pending finalization
of the decision of the Arbitral Tribunal, the JV partners and the Company had indicated in
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raised by DGH may be kept in abeyance.

During the financial year 2010-11, the Oil Marketing Companies, nominees of the GOI
recovered US$ 80.18 million [(Share of the Company US$ 32.07 million equivalent to
263Crore (March 31, 2023: 263 Crore)] as per directives of GoI in respect of Joint
Operation - Panna Mukta and Tapti Production Sharing Contracts (PSCs). The recovery is
towards certain observations raised by auditors appointed by DGH under the two PSCs for the
period 2002-03 to 2005-06 in respect of cost and profit petroleum share payable to GOI.

Pending finality by Arbitration Tribunal on various issues raised above, re-casting of the
financial statements and final quantification of liabilities, no provision has been accounted in
the financial statements. The demand raised by DGH, amounting to US$ 1,624.05 million
equivalent to 13,327 Crore as on June 30, 2023 (March 31, 2023: 13,342 Crore) has been
considered as contingent liability.

5. The Company had received demand orders from Service Tax Department at various work
centres on account of Service Tax on Royalty in respect of Crude oil and Natural gas. Appeals
against such orders have been filed before the Tribunals. The Ahmedabad Tribunal adjourned
the matter sine-die vide order dated June 25, 2019, against which the Company has filed writ
petition before Hon. Gujarat High Court and the matter is pending as of now. The Company
had also obtained legal opinion as per which the Service Tax/GST on Royalty in respect of
Crude oil and Natural gas is not applicable. Meanwhile, the Company also received demand
order dated January 01, 2019 on account of GST on Royalty in the State of Rajasthan against
which the Company filed writ petition (4919/2019) before Hon. High Court of Rajasthan, and
the same is pending for final disposal. The Company also filed writ of mandamus (9961/2019)
before Hon. High Court of Madras seeking stay on the levy of GST on royalty. The Hon.
High Court of Madras closed the writ petition in hearing held on July 6, 2022 based on the
department's rejection of the Company's GST refund applications without further
examination on merit. However. liberty was granted to challenge the refund rejection order of
department in accordance with law, accordingly, an appeal has been filed before the appellate
authority challenging the department's refund rejection order. Disputes are also pending at
various forums relating to various work centres in respect to GST on Royalty.

As an abundant caution, the Company has deposited the disputed Service Tax and GST on
royalty along-with interest under-protest amounting to Z 12,191 Crore up to June 30, 2023 (Z
11,558 Crore up to March 31, 2023). The Company continues to contest such disputed
matters before various forums based on the legal opinion as per which the Service Tax/GST
on Royalty in respect of Crude oil and Natural gas is not applicable. However, considering the
pending final decision in a similar matter by the Nine Judges' Bench of Hon'ble Supreme
Court, which is yet to be constituted and keeping in view the considerable time elapsed,
during the quarter and year ended March 31, 2023, the company made a provision towards
these disputed taxes as a prudent and conservative practice in respe . (1.t"-t nominated fie
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 as per agreed terms in JV blocks where there are no disputes amongst the JV partners and to
the extent of company's participating interest in the JV blocks where there are disputes
amongst the JV partners. Accordingly, during the quarter and year ended March 31, 2023, the
Company had provided 12,107 Crore towards disputed taxes for the period from April 1,
2016 to March 31, 2023 together with interest thereon up to March 31, 2023 towards the
ST/GST on Royalty. Further, a similar provision of 641 Crore has also been made during
the quarter ended June 30, 2023.

The Company has also obtained a legal opinion from the Additional Solicitor General,
Supreme Court of India and other legal expert, with respect to JV blocks where there are
disputes with JV partners, as per which the Service Tax/GST, if applicable on royalty, will
required to be discharged by the JV partners in their respective share of participating interest
in the JV blocks, and pending resolution of the disputes, other partners' share of disputed
ST/GST on Royalty in such JV blocks together with interest upto June 30, 2023 amounting to
4,574 Crore (Z 4,332 Crores till March 31, 2023) has not been considered for provision and
the same has been considered as contingent liability. The remaining disputed demand
received by the Company towards penalty and other differences i.e. 1,865 Crore (Z 1,862
Crore till March 31, 2023) has also been considered as contingent liability.

Considering the Experts' opinion on the subject, during the previous FY 2022-23 the
aforesaid amount deposited under protest has been claimed in the Income Tax return / in the
ongoing assessment & appellate proceedings, as an allowable expenditure under section 37
read with section 43B of the Income Tax Act, 1961 for the relevant earlier assessment years
and also towards the current tax for the year ended March 31, 2023. The same has also been
considered as an allowable expenditure while calculating the current tax for the quarter ended
June 30, 2023. The Company has also created deferred tax asset amounting to 90 Crore till
June 30, 2023 (Z 88 Crores till March 31, 2023) in respect of the amounts yet to be deposited
against the provision made for disputed taxes for the above periods.

6. Vide Gazette Notification No. F. No. Expl-15019 (25)/161/2019-ONG-D-V (E-34367) dated

11.07.2022, the Ministry of Petroleum & Natural Gas (MoP&NG) GoI notified de-regulation
of sale of domestically produced crude oil. Para 3 of the said Notification provides that
"Unless the contract provides otherwise, royalty, cess, other statutory levies and contractual
payments such as profit petroleum, revenue share, etc. shall be valued based on the actual
sales price or the price of the Indian Basket of crude oil, as calculated by Government
nominated Agency on monthly basis, whichever is higher". Accordingly, effective from
October 1, 2022, the company started paying OID Cess on the higher of the two prices, which
continued till May 31, 2023.

The company reviewed the liability for payment of OID Cess as per the provisions of the Oil
Industry (Development) Act 1974 (OID Act) and a legal opinion was also obtained in this
regard. On the basis of above it was concluded that OID Cess being a duty of excise, in terms
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(actual sale price). The company decided to rework the OID Cess liability on the basis of
transaction value retrospectively w.e.f. October 1, 2022 and accordingly the differential OID
Cess amounting to 280 Crore for the period from October 1, 2022 to May 31, 2023 (Z 244
Crore till March 31, 2023) was adjusted while making the payment of OID Cess for the
month of June 2023. The liability for the month of June 2023 was also worked out on the
basis of transaction value, which has resulted in lowering of liability by 24 Crore.
The matter has been taken up with the MoP&NG for clarification in terms of the above
referred notification, and pending clarification on the matter, the company continues to
reckon the liability of OID Cess on the transaction value.

7. An amount of 798 Crore is receivable from Public Sector Oil Marketing Companies
(OMCs) towards sale of crude oil from western offshore region during March to June 2023,
billed at benchmark price Dated Brent on provisional basis, pending finalisation of term sheet.
OMCs have released payments for the said period as per pricing formula applicable till
September 2022 after withholding the aforesaid amount. The discussions with OMCs for
finalization of pricing terms are in process except for one of the OMCs with whom pricing
terms have been finalised. Considering the progress in this regard, management is confident
that the issue would be resolved soon in favour of the Company and accordingly the withheld
amount of 798 Crore has been considered as good.

8. Formula used for computation of:

a. Net worth (Total equity) = Equity share capital + Other equity
b. Debt Equity Ratio = Total borrowings / Total equity.
c. Interest Service Coverage Ratio = Earnings before interest, tax and exceptional item
/ Interest on borrowings (net of transfer to expenditure during construction).
d. Debt Service Coverage Ratio = Earnings before interest, tax and exceptional item /
[Interest on borrowings (net of transfer to expenditure during construction) +
Principal repayments of Long Term borrowings].
There are no scheduled principal repayments of Long Term borrowings during
respective reported period therefore Interest Service Coverage Ratio and Debt
Service Coverage Ratio are same in corresponding period.
e. Current Ratio = Current assets / Current liabilities.
f. Long term debt to Working capital = Non-current borrowings (including current
maturity of non-current borrowings) / Working capital (excluding current maturity of
non-current borrowings).
g. Bad debts to Accounts receivable Ratio = Bad debts / Average trade receivables.
h. Current liability Ratio = Current liabilities / Total liabilities.

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 i. Total debts to Total assets = Total borrowings / Total assets.
j. Debtors turnover = Revenue from operations / Average trade receivables.
k. Inventory turnover = Revenue from operations / Average inventories.
1. Operating Margin (%) = Earnings before interest, tax and exceptional items /
Revenue from operations.

m. Net Profit Margin (%) = Profit for the period / Revenue from operations.

9. Previous period's figures have been regrouped by the Company, wherever necessary, to
conform to current period's grouping.

By order of the Board

(Pomila IJaspal)
Director (Finance)
In terms of our report of even date attached

For SARC & Associates For Kalani & Co. For R.G.N. Price & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm No. 006085N Fi rn eg. : 000722C Firm Reg. No. 02785S

(Pankaj Sharma) (Vika upta) (G Surendranath Rao)

Partner (M. No. 086433) Patine M. No. 077076) Partner (M. No. 022693)

For S. Bhandari & Co. LLP For J Gupta & Co. LLP
Chartered Accountants Chartered Accountants
Firm Reg. No. Firm Reg. No. 314010 -300029
000560C/C400334

(Virendra Rai) (Abhishek Raj)

Partner (M. No. 015780) Partner (M. No. 302648)

Place: New Delhi

Date: August 11, 2023

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants
SARC Towers, D-191, 703, VII Floor, Simpsons Building,
Okhla Industrial Estate, Milestone Building, 861, Anna Salai,
Phase I, New Delhi — 110020 Gandhi Nagar Crossing, Chennai - 600 002
Tonk Road, Jaipur-302015

S. Bhandari & Co LLP .1 Gupta & Co LLP

Chartered Accountants Chartered Accountants
P-7, Tilak Marg, YMCA Building
C-Scheme, Mezzanine Floor,
Jaipur-302005 25, Jawaharlal Nehru Road,
Kolkata —700 087

INDEPENDENT AUDITORS' LIMITED REVIEW REPORT ON THE UNAUDITED CONSOLIDATED FINANCIAL

RESULTS FOR THE QUARTER ENDED JUNE 30, 2023

TO THE BOARD OF DIRECTORS OF

OIL AND NATURAL GAS CORPORATION LIMITED

1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Oil
and Natural Gas Corporation Limited ("the Holding Company") and its Subsidiaries (the Holding
Company and its subsidiaries together referred to as ("the Group"), and its share of the net profit
after tax and total comprehensive income of its Joint Ventures and Associates for the quarter ended
June 30, 2023 (hereinafter referred to as "the Statement" and signed by us for the purpose of
identification), being submitted by the Holding Company pursuant to the requirements of Regulation
33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
as amended ("the Regulations").

2. This Statement, which is the responsibility of the Holding Company's Management and approved by
the Holding Company's Board of Directors, has been prepared in accordance with the recognition and
measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting"
("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, as amended, read with
relevant rules issued thereunder, and other accounting principles generally accepted in India. Our
responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements
(SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the
Entity" and also considering the requirements of Standard on Auditing (SA 600) on "Using the Work
of Another Auditor" including materiality, both issued by the Institute of Chartered Accountants of
India. This SRE requires that we plan and perform the review to obtain moderate assurance as to
whether the Statement is free of material misstatement. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and accounting matters,

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

and applying analytical and other review procedures. A review is substantially less in scope than an
audit conducted in accordance with Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the Circular issued by the Securities and Exchange
Board of India under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended, to the extent applicable.

4. The Statement includes the results of the following entities:

Sr. No. Name of the entity
A Holding Company
1 Oil and Natural Gas Corporation Limited
B Subsidiaries
1 ONGC Videsh Limited *
2 Mangalore Refinery and Petrochemicals Limited *
3 Petronet MHB Limited
4 Hindustan Petroleum Corporation Limited *
C Joint Ventures
1 ONGC Teri Biotech Limited
2 ONGC Tripura Power Company Limited *
3 ONGC Petro Additions Limited
4 Mangalore SEZ Limited *
5 Indradhanush Gas Grid Limited
6 Dahej SEZ Limited
D Associates
1 Petronet LNG Limited *
2 Pawan Hans Limited
3 Rohini Heliport Limited
* As per Consolidated financial results

5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based
on the consideration of the Review Reports of other auditors referred to in paragraph 7(iii) below,
nothing has come to our attention that causes us to believe that the accompanying Statement read
with Notes thereon, prepared in accordance with applicable Indian Accounting Standards specified
under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued

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Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

thereunder and other recognised accounting practices and policies, has not disclosed the information
required to be disclosed in terms of the Regulations, including the manner in which it is to be
disclosed, or that it contains any material misstatement.

6. Emphasis of Matter
We draw attention to the following matters in the Notes to the Statement:

(i) 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
Holding Company (all three together referred to as "Contractors"), towards differential
Government of India (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 Holding Company amounting to USD 1624.05 million equivalent to
Rs. 13,327 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 Holding Company
is not a party to the arbitration, the details of the proceedings of arbitration and copy of the
order of English Commercial Court (London High Court) are not available with the Holding
Company. The Holding Company has informed that the English 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. The English Court had delivered its verdict on
June 9, 2022 dismissing the challenge made by GOI. The GOI filed an appeal against the English
Court verdict of June 9, 2022 that was rejected by the English courts in August 2022.

Based on the information shared by BGEPIL, the GOI has also filed an execution petition before
the Hon'ble Delhi High Court seeking enforcement and execution of the October 12, 2016 FPA.
BGEPIL / RIL contend that GOI's execution petition is not maintainable and have opposed the
reliefs sought by the GOI under the said petition. The hearings in the matter before the Hon'ble
Delhi High Court concluded on August 4, 2022. The Delhi High Court issued a judgment dated
June 2, 2023 that the Government's Execution Petition in respect of the 2016 FPA is premature,
not maintainable and stands dismissed.

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Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

Pending finalization of the decision of the Arbitration Tribunal, the Holding 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 demand raised
by DGH, amounting to US$ 1,624.05 million equivalent to Rs. 13,327 Crore has been considered
necessary and has been treated as contingent liability.

(ii) Note No. 5, with respect to ongoing disputes/demands raised on various work centres of the
Holding 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 Holding Company
has disputed such levies and is contesting the same at various forums. However, as an abundant
caution, the Holding Company has deposited the disputed Service Tax and GST on royalty along-
with interest under-protest amounting to 12,191 Crore up to June 30, 2023.

As mentioned in the said note, the Holding Company continues to contest such disputed matters
before various forums based on the legal opinion as per which the Service Tax/GST on Royalty
in respect of Crude oil and Natural gas is not applicable. However, considering the pending final
decision in a similar matter by the Nine Judges' Bench of Hon'ble Supreme Court, which is yet
to be constituted and keeping in view the considerable time elapsed, during the quarter and
year ended March 31, 2023, the Holding Company made a provision towards these disputed
taxes as a prudent and conservative practice in respect of the nominated fields, as per agreed
terms in JV blocks where there are no disputes amongst the JV partners and to the extent of
company's participating interest in the JV blocks where there are disputes amongst the JV
partners. Accordingly, during the quarter and year ended March 31, 2023, the Holding Company
had provided 12,107 Crore towards disputed taxes for the period from April 1, 2016 to March
31, 2023 together with interest thereon up to March 31, 2023 towards the ST/GST on Royalty.
Further, a similar provision of 641 Crore has also been made during the quarter ended June
30, 2023.

As further mentioned in the note, based on the legal opinions, with respect to JV blocks where
there are disputes with JV partners, as per which the Service Tax/GST, if applicable on royalty,
will required to be discharged by the JV partners in their respective share of participating
interest in the JV blocks, and pending resolution of the disputes, other partners' share of
disputed ST/GST on Royalty in such JV blocks together with interest upto June 30, 2023
amounting to 4,574 Crore has not been considered for provision and the same has been
considered as contingent liability. The remaining disputed demand received by the Holding
Company towards penalty and other differences i.e. 1,865 Crore has also been considered as
contingent liability.

As mentioned in the note, considering the experts' opinion, during the previous FY 2022-23, the
aforesaid amount deposited under protest has been claimed in the Income Tax return / in the
ongoing assessment & appellate proceedings, as an allowable expenditure under section 37

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Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

read with section 43B of the Income Tax Act, 1961 for the relevant earlier assessment years and
also towards the current tax for the year ended March 31, 2023. The same has also been
considered as an allowable expenditure while calculating the current tax for the quarter ended
June 30, 2023. The Holding Company has also created deferred tax asset amounting to 90
Crore till June 30, 2023 in respect of the amounts yet to be deposited against the provision made
for disputed taxes for the above periods.

(iii) Note No. 6, wherein it is mentioned that considering the Gazette Notification dated 11.07.2022,
the Ministry of Petroleum & Natural Gas (MoP&NG) Gol notified de-regulation of sale of
domestically produced crude oil. Para 3 of the said Notification provides for valuation of royalty,
cess, other statutory levies and contractual payments based on the "actual sales price or the
price of the Indian Basket of crude oil, as calculated by Government nominated Agency on
monthly basis, whichever is higher". Effective from October 1, 2022, the Holding Company
started paying OID cess on the higher of the two prices, which continued till May 31, 2023. The
Holding Company reviewed the liability for payment of OID Cess as per the provisions of the Oil
Industry (Development) Act 1974 (OID Act) and also based on a legal opinion, and it was
concluded by the Holding Company that OID cess being a duty of excise, in terms of OID Act it is
payable on the transaction value (actual sale price). As a result the differential OID cess
amounting to Rs 280 Crore for the period from October 1, 2022 to May 31, 2023 (Rs 244 Crore
till March 31, 2023) was adjusted by the Holding Company while making the payment of OID
cess for the month of June 2023. The liability for the month of June 2023 was also worked out
on the basis of transaction value, which has resulted in lowering of liability by Rs. 24 crore. The
matter has been taken up by the Holding Company with the MOP&NG for clarification in terms
of the above referred notification, and pending clarification on the matter, the Holding Company
continues to reckon the liability of OID cess on the transaction value.

(iv) Note No. 8 to the Statement and the Emphasis of Matter paragraphs (EOM) included in para 6(i)
of the Independent Auditors' Review Report on the Consolidated Financial results of ONGC
Videsh Limited, a subsidiary of the Holding Company, issued by Independent firms of Chartered
Accountants vide their report dated August 8, 2023, the said EOM is reproduced as under:

"We draw your attention to Note no. 12.1 and 44(iii)(a) of the Consolidated Financial
results regarding Investment which includes Rs.1,42,808.83 million classified (from oil, gas
& other assets net of liabilities relating to the project Sakhalin -1) as "Investment pending
proportionate ownership interest allotment" due to Decree of the Russian Federation for
acquisition & transfer ofallrights & obligations of the consortium under PSA of the Project
"Sakhalin-1" to a new entity "Sakhalin- 1 LLC" incorporated in Russia by the Russian
federation.

Further, as per Decree, allotment ofshares in the new LLC is subject to transfer of the fund
invested by the holding Company against the "Site Restoration Fund" amounting to

Page 5 of 8

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

Rs.48,277.63 million as on 14th October 2022 (i.e., the date of cessation of rights &
obligations of the consortium) in the bank account of new entity "Sakhalin -1 LLC". Since
transfer of the saidfund/amount is still to be made by Holding Company, shares have not
yet been allotted till date.

In the opinion of the management, rights & obligations are still evolving, hence, the
accounting treatment given for the same will be revisited on finalization of the
arrangement."

(v) Note No. 9 to the Statement and the Emphasis of Matter paragraphs (EOM) included in para
6(iii) of the Independent Auditors' Review Report on the Consolidated Financial results of
ONGC Videsh Limited, a subsidiary of the Holding Company, issued by Independent Firms of
Chartered Accountants vide their report dated August 08, 2023, the said EOM is reproduced
as under:

"We draw your attention to Note no 44(xviii) of the Consolidated Financial Results
regarding un-utilized balances of "Cash Calls" included under "Cash & Cash Equivalents"
amounting to Rs. 2,007.69 million which are stated to have been lying in the overseas
operators' Bank Account and recorded on the basis of expenditure statement i.e., Joint
interest billing."

(vi) Note No. 12 to the Statement and the para 2 in the Emphasis of Matter paragraphs (EOM)
included in the Independent Auditor's Review Report on the Financial results of ONGC Petro
additions Limited (OPaL), a joint venture of the Holding Company, issued by an independent
firm of Chartered Accountants vide their report dated August 07, 2023, the said EOM
reproduced as under:

"The Company has incurred a net loss after tax of Rs. 9,081.45 million during the quarter
ended June 30, 2023, accumulated losses to the tune of Rs. 1,38,488.41 million and
Company is having negative working capital of Rs. 64,349.37 million as of that date. Net-
worth of the Company has come down to negative, stands at Rs. 2,270.93 million as at
June 30, 2023. In spite of these conditions which may cast a doubt on the ability of the
Company to continue as a going concern, the management is of the opinion that going
concern basis of accounting is appropriate in view of the cash flow forecasts and the plan
management has put in place."

Our conclusion on the Statement is not modified in respect of the above matters.

113 S 06-4", rkt4 Page 6 of 8

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP J Gupta & Co LLP

Chartered Accountants Chartered Accountants

7. Other Matters
( We have placed reliance on technical/commercial evaluation by the management in respect of
categorization by the Holding Company of wells as exploratory, development, producing and dry
wells, allocation of costs incurred on them, proved (developed and undeveloped) / probable
hydrocarbon reserves and depletion thereof on Oil and Gas Assets, impairment, liability for
decommissioning costs, liability for NELP/ HELP and nominated blocks for under performance
against agreed Minimum Work Programme.

(ii) The Statement includes the Holding Company's proportionate share in the total value of
expenditure and Income of 194 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 25 blocks have not been reviewed by us, the details of which are as
under: -

• 1 block has been certified by other Chartered Accountant. In respect of this block, the
Statement includes revenue amounting to Rs. 1,702.29 Crore and profit before tax
including other comprehensive income amounting to Rs. 541.18 Crores respectively for
the quarter ended June 30, 2023. Our conclusion is solely based on the certificate of the
other Chartered Accountant.

• 24 blocks have been certified by the management. In respect of these 24 blocks, the
Statement includes revenue amounting to Rs. 316.66 Crore and profit/(loss) before tax
including other comprehensive income amounting to Rs. (9.76) Crores respectively for
the quarter ended June 30, 2023. Our conclusion is solely based on management
certified accounts in respect of these blocks.

(iii) We did not review the interim financial results/information in respect of four subsidiaries
included in the Statement, whose interim financial results/information reflect total revenues of
Rs. 1,46,403.23 Crore, total net profit after tax of Rs. 7,930.96 Crore and total comprehensive
income of Rs. 6,885.42 Crore, for the quarter ended June 30, 2023, respectively as considered
in the Statement. The Statement also include the Group's share of Loss after tax of Rs. 331.33
Crore and total comprehensive income of Rs. (331.24) Crore for the quarter ended June 30,
2023, as considered in the Statement, in respect of six Joint Ventures and one Associate, whose
financial results/information have not been reviewed by us. These interim financial results/
information have been reviewed by other auditors whose reports have been furnished to us by
the Management and our conclusion on the Statement, in so far as it relates to the amounts and
disclosures included in respect of these subsidiaries, joint ventures and associate is based solely
on the reports of the other auditors and the procedures performed by us as stated in paragraph
3 above.

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 SARC & ASSOCIATES Kalani & Co R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants

S. Bhandari & Co LLP 1 Gupta & Co LLP

Chartered Accountants Chartered Accountants

The Statement also includes the Group's share of net Loss after tax of Rs. 14.63 Crore and total
comprehensive income of Rs. (14.63) Crore for the quarter ended June 30, 2023, as considered in
the Statement, in respect of two Associates, based on their interim financial results/information,
which have not been reviewed by their auditors or by us. These, interim financial
results/information are certified by the management of the Holding Company. According to the
information and explanations given to us by the Management, these, interim financial
results/information are not material to the Group.

(iv) The Statement includes comparative figures for the quarter ended June 30, 2022, reviewed by
the joint auditors of the Holding Company, two of whom were the predecessor audit firms,
where they had expressed an unmodified conclusion vide their report dated August 12, 2022 on
such Consolidated Financial Results.

Our conclusion on the Statement is not modified in respect of the above matters.

For SARC & ASSOCIATES For Kalani & Co For R.G.N. Price & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm R o.: 006085N Fi m Reg. No.: 000722C Firm Reg. No.: 002785S

0.•
V 7
(Pankaj Sharma) (Vikas Kumar Pareek) (Aditya Kumar)
Partner (M. No. 086433) Partner (M. No. 422687) Partner (M. No. 232444)

UDIN: 23086433 BGZHXO2547 UDIN: 23422687BGYMVD6722 UDIN: 23232444BGYTBY4124

For S. Bhandari & Co LLP For J Gupta & Co LLP

Chartered Accountants Chartered Accountants
Firm Reg. No.: 000560C/C400334 Firm Reg. No: 314010E/E300029

(P.P Pareek) (Abhishek Raj)

Partner (M. No. 071213) Partner (M. No. 302648)
UDIN: 23071213BGZHWV3311 UDIN: 23302648BGYBFB6987

Place: New Delhi

Dated: August 11, 2023

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 OIL AND NATURAL GAS CORPORATION LIMITED
CIN No. L74899DL1993001054155
Regd Office : Plot No. 5A- 5B, Nelson Mandela Road, Vasant Kunj, New Delhi, South West Delhi - 110070
Tel: 011-26754002, Fax: 01 1-26129091, E-mail: secretariat@ongc co in

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2023
6' In Crorel
Financial results for
SI. No. Particulars Quarter ended Quarter ended Quarter ended Year ended
30.06.2023 31.03.2023 30.061022 31.031023
Ilium,Med AmMed Unaudited Audited

1 Revenue from operations 163,823 59 164.066 72 182.893 75 684,829 21

11 f lilio income 2.543 53 2_662 08 1,257.38 0.074.08
III Tidal income (1+11) 166,367.12 166.7283111 16435 LIJ 692.903.315
IV Expenses
(al, Cost of materials consumed* 41.316 67 40.726 23 51,027 24 167,630 18
ib I Purchase of Stock-in-Trade 55,671 54 62,982 02 78,717 78 266 120 04
(c] rhangea in inventories of finished goods, stock-in-trade and work-in progress 3,47182 (1,048 88) (2,098 95) 2,566 08
Id ) Employee benefits expense" 1,813.28 1,915 55 1,672.52 6,806.95
I el Statutory levies 18,995 95 19,979 27 22,093 78 89,867 90
kn Exploration costs written off
(i) Surrey costs 1,217.10 1,752,38 775.49 3,97943
(ii) Exploration well costs 622.81 2,813.31 451.42 6.201 54
I g) Finance costs 2,363.94 2,068.11 1,639.88 7,889 36
llui Depreciation. depletion, amortisation and impairment 7.072.34 6,719. 19 6,611 09 24,557 05
(1) Other expenses 10.605.61 13.950 I I 11,401 69 46.130.13
TOW expenses (IV) 143,153.06 151,857.29 172,291.94 641,748.66

V NOM before share of profit/(loss) of associates and joint ventures, exceptional items and tax (III - IV) 23,214.06 14,871.51 11,859.19 51,154,64
VI Shuts of profit of associates & joint ventures 525 75 (1.523 07) 1,035 06 34 06
VII Prolli before exceptional items (V+VI) 23,739.81 13,348.44 12,894.25 51,188,70
VIII I.:ccpliona/ items - Income/(expenses) (7 444 66) (673 66) (&13794)
IX Front before tax (V1I+VIII) 23,739.81 5,903.78 12,220.59 43,050.76
X Tax CMIMIC
in Current tax relating to,
-current year 4,149,08 3,69156 6,31774 14,620 93
-earlier years 82.01 (2,365 90) (2.891 43)
111/ I Deferred tax 2.125.75 (1,123 34) 12.677 90) (1_456.35)
Tour tax expense (X) 6,356.84 202.32 3,63984 10,27).15

X1 Pntfle for the period (13C-X) 17,382.97 5,701.46 8,580.75 32,777.61

XD Other comprehensii e income (OCI)
A Items that will not be reclassified to profit or loss
tat Remeasurement of the defined benefit plans (11.35) (272 66) 44.69 (287 861
-Deferred lax 3,08 68,86 (11 22) 73.08
(b) Equity instruments through other comprehensive income 2066.62 694.36 (1,423 32) (200.18)
- Deferred tax (23846) (5002) (97 55) (24832)
tbi Share of other comprehensive income in associates and joint ventures. to the extent not to be reclassified to profit or loss (0,48) (1.67) 0,91 (2.67)
- Deferred tax .-
El Items that will be reclassified to profit or loss
Is! Exchange differences in translating the financial statement of foreign operation (1,613.54) (1,958.88) 10,019.29 5,654.14
- Deferred tax 565 15 686 3 7 (3,508,87) (1.990.20)
lb) Effective portion of gains (losses) on hedging insinunents in cash flow hedges 7 86 97.52 (544 14) 4,01
- Deferred tax (1,98) (24.55) 136 95 (1.01)
(et Share of other comprehensive income in associates and Mint ventures, to the extent to be reclassified to profit or loss 16.95 9.20 (52 03) (129 69)
Total Other Comprehensive Income (XI]) 1,353,115 1752.37) 4564.71 2,67Liii
XIII Total Comprehensh e Income for the period (XI+XII) 18,776.62 4,949,09 13,145.46 35,648.89

XIV Profii for the period attributable to:

• Omura of the Company 14,133 91 3,715 48 11.936 64 35,440,48
-Non-controlling interests 314906 1.985 98 (3,355 89) (2,662,87)
17,382.97 5,701.46 8,580.75 32,777.61
XV t thus comprehensi, e income attributable to:
- Owners of the Company 1,391 11 (760 24) 4,764 03 3,012,94
- Non-controlling interests 174 787 (19932) (141.66)
1,393.85 (752.37) 4,564.71 2,871.28
XVI Totalromprehensive income attributable to:
- Owners of the Company 15,525 02 2,955 24 16,700 67 38,453,42
-Non-controlling interests 3.251.80 t 993 85 (3,555.21) 2,804.531
18,776.82 4,949.09 13,145.46 35,648.89
XVII raid up equity share capital (Face value of 05/- each) 14298.14 6,290.14 6,290.14 6,290.14
XVIII Net worth' 320,151 74 301,25504 296,797,41 301,255.04
XIX Paid up Debt Capital / Outstanding Debts 115,731 f.8 129,185 56 113,658,75 129,185_56
XX Other Equity 290,014 65 274,357 16 270,18105 274,357 16
XXI Capital Redemption Reserve 191 75 19175 191,75 191.75
XXII Debenture Redemption Reserve 1.6011' 15 2,814.95 2,832,65 2,814.95
XXIII Earnings per equity share: (Face value of 05/. each) - not annualised
(at Basic (r) 11 23 2.95 9.49 28.17
(b) Diluted (0 11 23 2.95 9.49 28.17
XXIV f)eht Equity Ratio" 036 0.43 0.38 0.43
XXV Debi Sen ice Coverage Ratio' 259 4.03 11.02 3.93
XXVI interest Service Coverage Ratio" 18 04 10.98 1903 12.84
V.XV1) Corm Ratio' 102 0.86. 0.88 0.86
XXVIII Loop Term Dab( to Working Capital" 9 52 •(.i. ••• ...
XXIX Bad debts to Account Receivable Ratio' 0 01 , - -
XXX Current Liability Ratio 0 37 0.42 0 45 0 42
XXXI 1 01A1 Debts to Total Assets" 018 0.21 0 18 021
XXXII Delmar r Turnover' 749 7.67 8.05 31 82
31X7(111 Inventory Timone,r' 3.81 3.65 3 35 13 92
XXXI,/ Operattng Margin (%)" 15.93 9.40 7 95 8 63
VL-V.V Nee Prollt Margin (%)1 111.61 3.48 4.69 4 79

• itoponrnla Lannomputto oars,. nod. nda. end stores & spares **Employee benefits expense shown above is and of allmmon to dance( is i, on S omposn no -current and current borrowings II Refer Note No 13 ***Not
drachma) en denominator is neganv

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 OIL AND NATURAL GAS CORPORATION LIMITED
CIN No L74899DL1993G01054155
Regd Office : Plot No 5A- 5B, Nelson Mandela Road, Vasant Kunj, New Delhi, South West Delhi - 110070
Tel: 011-26754002, Fax: 011-26129091, E-mail: secretariat@ongc co in

CONSOLIDATED SEGMENT WISE REVENUE, RESULTS, ASSETS & LIABILITIES

(Z in Crore)

SI Quarter ended Quarter ended Quarter ended Year ended

Particulars 30.06.2023 31.03.2023 30,06.2022 31.03.2023
No.

Unaudited Audited Unaudited Audited

1 Segment Revenue
A In India
(i) E&P
a) Offshore 23,076 85 25,013.31 27,990.38 104,113.80
b) Onshore 10,669.13 11,212.68 14,241 26 51,115 65
(ii) Refining & Marketing 144,063 14 144,041.34 157,500 99 591,522 50
B Outside India 2,367 81 2,238.39 3,767 94 11,676 33
C. Others Unallocated 40 63 41.33 30 98 141.89
Total 180,217.56 182,547.05 203,531.55 758,570.17
Less: Inter Segment Revenue 16,393 97 18,480.33 20,637 80 73,740 95
Revenue from operations 163,823.59 164,066.72 182,893.75 684,829.22

2 Segment Result Pro fit(+)/Loss(-) before tax and interest from each
segment
A. In India
(i) E&P
a) Offshore 11,014 76 2,882 44 15,988 19 42,795 40
b) Onshore 2,398 81 (3,571 42) 4,817.63 6,308 16
(ii) Refining & Marketing 10,507 33 7,342,57 (8,936.42) (5,678 78)
B Outside India 367 87 2,148,94 565.84 3,937 30
Total 24,288.77 8,802.53 12,435.24 47,362.08
Less:
i Finance Cost 2,363.94 2,068 11 1,639 88 7,889.36
ii Other unallocable expenditure net of tmallocable income (1,289 24) (692 43) (390.17) (3,543 99)
Add: Share of pro fit/(loss) of joint ventures and associates:
A In India
(i) Refming & Marketing 509 46 467 22 1,205.40 2,040.33
(ii) Unallocated (347 02) (897.13) (426.55) (1,466 81)
B Outside India-E&P 363 30 (1,093.16) 256.21 (539.47)
Profit before Tax 23.739,81 5,903.78 12,220.59 43,050,76

3 Segment Assets
A. In India
(i) E&P
a) Offshore 164,238 29 147,329.32 149,602 07 147,329 32
b) Onshore 73,850.84 73,443.15 75,665 02 73,443.15
(ii) Refining & Marketing 195,326,21 193,661.15 196,524 60 193,661.15
B. Outside India 112,874.06 116,132.94 129,94631 116,132.94
C Others Unallocated 94,337.34 83,962.17 68,108 74 83,962.17
Total 640,626.74 614,528.73 619,846,74 614,528.73
4 Segment Liabilities
A. In India
(i) E&P
a) Offshore 69,859.36 55,136.15 50,925,20 55,136.15
b) Onshore 17,883.87 17,625.88 16,350.59 17,625.88
(ii) Refuting & Marketing 143,225.88 149,494.40 152,354.53 149,494.40
B. Outside India 52,433.33 54,812 53 67,318 55 54,812.53
C Others Unallocated 37,072,56 36,20473 36,100.46 36,204.73
Total 320,475.00 313,273.69 323,049,33 313,273.69

Note: Segments have been identified and reported taking into account the diffusing risks and returns, the groups structure and the internal reporting systems These have been
organized into the following Geographical and Business segments:
Geographical Segments: a) In India - Offshore and Onshore b) Outside India
Business Segments : a) Exploration & Production (E&P) b) Refusing & Marketing of Petroleum products

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 Notes:

1. The above consolidated financial results of the Company for the quarter ended June 30, 2023 have
been reviewed and recommended by the Audit Committee and approved by the Board of Directors
in their respective meetings held on the August 11, 2023.

2. The consolidated financial results of the Group [The Holding Company (the Company) and its
subsidiaries] for the quarter ended June 30, 2023 have been reviewed by the Statutory Auditors as
required under Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

3. The figures for the quarter ended March 31, 2023 are the balancing figures between audited figures
in respect of the full financial year 2022-23 and the year-to-date figures upto the third quarter of 2022-
23, which were subjected to limited review.

4. The Company, with 40% Participating Interest (PI), was a Joint Operator in Panna-Mukta and Mid
and South Tapti Fields along with Reliance Industries Limited (RIL) and BG Exploration and
Production India Limited (BGEPIL) each having 30% PI, (all three together referred to as
"Contractors") signed two Production sharing Contracts (PSCs) with Government of India (Union of
India) on December 22, 1994 for a period of 25 years. The PSCs for Panna Mukta and Mid & South
Tapti have expired on December 21, 2019. In terms of the Panna Mukta Field Asset Handover
Agreement, the Contractors of PMT JV are liable for the pre-existing liability.

In December 2010, RIL & BGEPIL (JV Partners) invoked an international arbitration proceeding
against the Union of India in respect of certain disputes, differences and claims arising out of and in
connection with both the PSCs .The Ministry of Petroleum and Natural Gas (MoP&NG), vide their
letter dated July 4, 2011, had directed the Company not to participate in the Arbitration initiated by
the JV Partners (BGEPIL & RIL). MoP&NG has also stated that the Arbitral Award would be
applicable to the Company also as a constituent of the Contractor for both the PSCs.

Directorate General of Hydrocarbons (DGH), vide letter dated May 25, 2017 had informed the
Company that on October 12, 2016, a Final Partial Award (FPA) was pronounced by the Tribunal in
the said arbitrations. As informed by BGEPIL that on issues relating to the aforesaid disputes,
additional Audit Award on January 11, 2018, Agreement Case Award on October 1, 2018 and
Jurisdictional Award on March 12, 2019 were pronounced. However, the details of proceedings of
the FPA and other Orders are not available with the Company. DGH, vide their letters dated May 25,
2017 and June 4, 2018, marked to the Contractors, had directed the payment of differential
Government of India share of Profit Petroleum and Royalty alleged to be payable by Contractors
pursuant to Government's interpretation of the FPA (40% share of the Company amounting to US$
1,624.05 million, including interest up to November 30, 2016) equivalent to Z 13,327 Crore (March
31, 2023: Z 13,342 Crore). In response to the letters of DGH, the JV partners (with a copy marked to
all Joint Venture Partners) had stated that demand of DGH was premature as the FPA did not make
any money award in favour of Government of India, since quantification of liabilities were to be
determined during the final proceedings of the arbitration. Further the award had also been challenged
before the English Commercial Court (London High Court). Based on the above facts, the Company
had also responded to the letters of DGH stating that pending finality of the order, the amount due
and payable by the Company was not quantifiable. In view of the Company, if any changes are
approved for increase in the Cost Recovery Limit (CRL) by the Arbitral Tribunal as per the terms of
the PSCs the liability to Government of India (GOI) would potentially reduce.

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 The English 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 GOI
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. BGEPIL
has informed that the Tribunal issued a verdict in January 2021, favouring BGEPIL/RIL on the
remitted matter, which was challenged by the GOI before the English Court. The English Court
delivered its verdict on June 9, 2022 dismissing the GoI's challenges and upholding the Revised
Agreements Award. The GOI filed an appeal against the English Court verdict of June 9, 2022 that
was rejected by the English courts in August 2022.

Based on the information shared by BGEPIL, the GOI has also filed an execution petition before the
Hon'ble Delhi High Court seeking enforcement and execution of the October 12, 2016 FPA. In
January 2018, the Company along with the JV partners had filed an application with MC for increase
in CRL in terms of the PSCs. BGEPIL / RIL contend that GOI's execution petition is not maintainable
and have opposed the reliefs sought by the GOI under the said petition. The hearings in the matter
before the Hon'ble Delhi High Court concluded on August 4, 2022. The Delhi High Court issued a
judgment dated June 2, 2023 that the Government's Execution Petition in respect of the 2016 FPA is
premature, not maintainable and stands dismissed.

The application has been rejected by MC. Pursuant to the rejection, the JV partners have filed a claim
with Arbitral Tribunal. One of the JV partners has further informed the Company that the hearing
before the Arbitral Tribunal has been partially heard during the quarter of October — December 2021.
Substantial hearings have taken place since 2021 in respect of the Cost Recovery Limit increase
applications filed by BGEPIL & RIL and an award is presently expected by Q4 2023-24.

DGH vide letter dated January 14, 2019 has advised to the contractors to re-cast the accounts for
Panna-Mukta and Mid and South Tapti Fields for the year 2017-18. Pending finalization of the
decision of the Arbitral Tribunal, the JV partners and the Company had indicated in their letters to
DGH that the final recasting of the accounts was premature and thus the issues raised by DGH may
be kept in abeyance.

During the financial year 2010-11, the Oil Marketing Companies, nominees of the GOI recovered
US$ 80.18 million [Share of the Company US$ 32.07 million equivalent to Z 263 Crore (March 31,
2023: Z 263 Crore)] as per directives of GoI in respect of Joint Operation - Panna Mukta and Tapti
Production Sharing Contracts (PSCs). The recovery is towards certain observations raised by auditors
appointed by DGH under the two PSCs for the period 2002-03 to 2005-06 in respect of cost and profit
petroleum share payable to GOT.

Pending finality by Arbitration Tribunal on various issues raised above, re-casting of the financial
statements and final quantification of liabilities, no provision has been accounted in the financial
statements. The demand raised by DGH, amounting to US$ 1,624.05 million equivalent to Z 13,327
Crore as on June 30, 2023 (March 31, 2023: Z 13,342 Crore) has been considered as contingent
liability.

5. The Company had received demand orders from Service Tax Department at various work centres on
account of Service Tax on Royalty in respect of Crude oil and Natural gas. Appeals against such
orders have been filed before the Tribunals. The Ahmedabad Tribunal adjourned the matter sine-die
vide order dated June 25, 2019, against which the Company has filed writ petition before Hon. Gujarat
High Court and the matter is pending as of now. The Company had also obtained legal opinion as per
which the Service Tax/GST on Royalty in respect of Crude oil and Natural gas is not applicable.

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 Meanwhile, the Company also received demand order dated January 01, 2019 on account of GST on
Royalty in the State of Rajasthan against which the Company filed writ petition (4919/2019) before
Hon. High Court of Rajasthan, and the same is pending for final disposal. The Company also filed
writ of mandamus (9961/2019) before Hon. High Court of Madras seeking stay on the levy of GST
on royalty. The Hon. High Court of Madras closed the writ petition in hearing held on July 6, 2022
based on the department's rejection of the Company's GST refund applications without further
examination on merit. However. liberty was granted to challenge the refund rejection order of
department in accordance with law, accordingly, an appeal has been filed before the appellate
authority challenging the department's refund rejection order. Disputes are also pending at various
forums relating to various work centres in respect to GST on Royalty.

As an abundant caution, the Company has deposited the disputed Service Tax and GST on royalty
along-with interest under-protest amounting to 12,191 Crore up to June 30, 2023 (Z 11,558 Crore
up to March 31, 2023). The Company continues to contest such disputed matters before various
forums based on the legal opinion as per which the Service Tax/GST on Royalty in respect of Crude
oil and Natural gas is not applicable. However, considering the pending final decision in a similar
matter by the Nine Judges' Bench of Hon'ble Supreme Court, which is yet to be constituted and
keeping in view the considerable time elapsed, during the quarter and year ended March 31, 2023,
the company made a provision towards these disputed taxes as a prudent and conservative practice in
respect of the nominated fields, as per agreed terms in JV blocks where there are no disputes amongst
the JV partners and to the extent of company's participating interest in the JV blocks where there are
disputes amongst the JV partners. Accordingly, during the quarter and year ended March 31, 2023,
the Company had provided 12,107 Crore towards disputed taxes for the period from April 1, 2016
to March 31, 2023 together with interest thereon up to March 31, 2023 towards the ST/GST on
Royalty. Further, a similar provision of 641 Crore has also been made during the quarter ended
June 30, 2023.

The Company has also obtained a legal opinion from the Additional Solicitor General, Supreme Court
of India and other legal expert, with respect to JV blocks where there are disputes with JV partners,
as per which the Service Tax/GST, if applicable on royalty, will required to be discharged by the JV
partners in their respective share of participating interest in the JV blocks, and pending resolution of
the disputes, other partners' share of disputed ST/GST on Royalty in such JV blocks together with
interest upto June 30, 2023 amounting to 4,574 Crore (Z 4,332 Crores till March 31, 2023) has not
been considered for provision and the same has been considered as contingent liability. The remaining
disputed demand received by the Company towards penalty and other differences i.e. 1,865 Crore
(Z 1,862 Crore till March 31, 2023) has also been considered as contingent liability.

Considering the Experts' opinion on the subject, during the previous FY 2022-23 the aforesaid
amount deposited under protest has been claimed in the Income Tax return / in the ongoing
assessment & appellate proceedings, as an allowable expenditure under section 37 read with section
43B of the Income Tax Act, 1961 for the relevant earlier assessment years and also towards the
current tax for the year ended March 31, 2023. The same has also been considered as an allowable
expenditure while calculating the current tax for the quarter ended June 30, 2023. The Company has
also created deferred tax asset amounting to 90 crore till June 30, 2023 (Z 88 crore till March 31,
2023) in respect of the amounts yet to be deposited against the provision made for disputed taxes for
the above periods.

6. Vide Gazette Notification No. F. No. Expl-15019 (25)/161/2019-ONG-D-V (E-34367) dated

11.07.2022, the Ministry of Petroleum & Natural Gas (MoP&NG) GoI notified de-regulation of sale
of domestically produced crude oil. Para 3 of the said Notification provides that "Unless the contract
provides otherwise, royalty, cess, other statutory levies and contractual payments such as profit

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Indian Basket of crude oil, as calculated by Government nominated Agency on monthly basis,
whichever is higher" Accordingly, effective from October 1, 2022, the Company started paying OID
cess on the higher of the two prices, which continued till May 31, 2023.

The Company reviewed the liability for payment of OID Cess as per the provisions of the Oil Industry
(Development) Act 1974 (OID Act) and a legal opinion was also obtained in this regard. On the basis
of above it was concluded that OID cess being a duty of excise, in terms of section15(1) read with
section 15(4) of OID Act, it is payable on the transaction value (actual sale price). The Company
decided to rework the OID Cess liability on the basis of transaction value retrospectively w.e.f.
October 1, 2022 and accordingly the differential OID cess amounting to 280 Crore for the period
from October 1, 2022 to May 31, 2023 (Z 244 Crore till March 31, 2023) was adjusted while making
the payment of OID cess for the month of June 2023. The liability for the month of June 2023 was
also worked out on the basis of transaction value, which has resulted in lowering of liability by 24
crore.

The matter has been taken up with the MoP&NG for clarification in terms of the above referred
notification, and pending clarification on the matter, the Company continues to reckon the liability of
OID cess on the transaction value.

7. An amount of 798 Crore is receivable by the Company from Public Sector Oil Marketing
Companies (OMCs) towards sale of crude oil from western offshore region during March to June
2023, billed at benchmark price Dated Brent on provisional basis, pending finalisation of term sheet.
OMCs have released payments for the said period as per pricing formula applicable till September
2022 after withholding the aforesaid amount. The discussions with OMCs for finalization of pricing
terms are in process except for one of the OMCs with whom pricing terms have been finalised.
Considering the progress in this regard, management is confident that the issue would be resolved
soon in favour of the Company and accordingly the withheld amount of 798 Crore has been
considered as good.

8. The Subsidiary Company, ONGC Videsh Limited (OVL) has considered the possible effects that
may result from the special operations carried out by Russia in Ukraine, various sanctions that have
been imposed on Russia by several countries and Russian Government's recent decrees in relation
thereto. The Group has assessed the impact of these on its operations/assets in Russia namely
Sakhalin-1 (Joint arrangement — 20% Stake), Vankorneft (Associate — 26% Stake) and Imperial
Energy (Wholly owned subsidiary) as follows

Sakhalin-1:

OVL acquired 20% participating interest (PI) in Sakhalin-1 (S-1) project, an oil and gas field located
in far-east offshore Russia through Production Sharing Agreement (PSA) in July 2001. Exxon
Neftgaz Limited (ENL), a US major Exxon Mobil subsidiary, was the project's Operator. The
Company accounted for its 20% participating interest (PI) in the project as joint operator on a
proportionate consolidation basis. In line with the PSA, Joint Operating Agreement and Crude-
Offtake Agreement, OVL was entitled to lift and sell oil and gas proportionate to its PI and discharge
its obligations. Due to the special operations carried out by Russia in Ukraine from February 2022,
various restrictions including international sanctions were imposed on Russia, thereby constraining
crude oil evacuation from De-Kastri terminal and production from the S-1 project. Subsequently, the
Operator ENL declared Force Majeure (FM) in April 2022.

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 On 7th October 2022, the President of Russian Federation issued a Decree (Presidential Decree No.
723) for transfer of all rights and obligations of S-1 Consortium under the PSA to a new Russian
limited liability company. Further, the Government of the Russian Federation on 12th October 2022,
notified a Resolution (Resolution No. 1808) conveying that all rights and obligations of the
Consortium under the PSA shall be transferred to a new company Sakhalin-1 Limited Liability
Company (Sakhalin-1 LLC). Sakhalin-1 LLC established by the Government of the Russian
Federation was registered in Yuzhno-Sakhalinsk, Russia on 14th October 2022 and the existing
foreign parties in the PSA were required to give their consent to take ownership of shares in the
charter capital of Sakhalin-1 LLC in proportion to their PI under the PSA.

OVL in compliance with the Presidential Decree, notified to the Government of the Russian
Federation on 8th November 2022 of its consent to take ownership of 20% shares in the charter capital
of Sakhalin-1 LLC in proportion to its PI under the PSA. The Government of Russian Federation vide
order dated 9th November 2022 granted a proportionate share of 20% to OVL in the charter capital
(nominal value of RUR 10,000) of Sakhalin-1 LLC. The grant was conditioned with transfer of the
OVL's share in the existing accumulated abandonment fund relating to the S-1 project. OVL has
received its share of the accumulated abandonment fund from the Foreign Party Administrator on 5th
& 6th April 2023. OVL is in the process of completing transfer of its share of abandonment fund to
Sakhalin-1 LLC to fulfil the condition precedent. Due to restrictions on Russian banks, OVL is in
discussion with Sakhalin-1 LLC for identifying likely alternatives for fulfilling the condition
precedent. Interest accrued on above fund along with the TDS thereon is due to S1 LLC. As on 30th
June 2023, an amount of US$ 606.69 million (Z 4,978 Crore ) is held by OVL on behalf of Sakhalin-
1 LLC, in a special purpose bank account opened with permission from the Reserve Bank of India.

Since the rights and obligations of consortium partners under the PSA have been transferred to
Sakhalin 1 LLC, OVL may no longer be able to account for its proportionate share of assets and
liabilities relating to the S-1 project for the transition period. OVL has therefore accounted for the
same on net assets basis (i.e., carrying values of the assets net of liabilities pertaining to Sakhalin-1
project previously accounted for by OVL on proportionate consolidation basis) and 14,324 crore
have been transferred to "Investment Pending Proportionate Ownership Interest in Equity of
Sakhalin-1 LLC" effective from 14th October 2022. OVL will revisit the accounting treatment for
the S-1 project on finalisation of the arrangement.

Post incorporation, interim financial statements of Sakhalin-1 LLC for the period 14th October 2022
to 31st December 2022 have been received. However, OVL has not received the financial statements
for the period from 1st January 2023 to 30th June 2023 and thereafter. Further, limited information
regarding field operations, production summary, wells summary, drilling, and crude transportation
operations has been received from the project till 30th June 2023. Based on the above, OVL has
estimated the profitability of Sakhalin-1 LLC for the period from 14th October 2022 to 30th June
2023. The estimate indicates operating profit for the period, however, as a matter of prudence the
estimated share of profit is not accounted for by OVL as shares of Sakhalin-1 LLC are not yet allotted.

JSC Vankorneft:

In case of JSC Vankorneft, production from the field continues as per the Business Plan. The project
being an equity-accounted entity, OVL is entitled to dividends. Dividends up to the calendar year
2022 have been received. Final dividend for calendar year 2022 amounting to Rouble 4.829 billion
was received on 14th June 2023. Dividends from JSC Vankorneft (along with interest income
thereon) amounting to Rouble 11.348 billion (Z 1,070 crore) remains in Commercial Indo Bank LLC
Moscow, Russia. Repatriation of the said dividends is presently subject to restrictions. As such, the
amount is available for use by the OVL Group in the country and currency of receipt.

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 Imperial Energy:

Imperial Energy's operations are continuing as per the Business Plan except for the price of crude oil
sales being affected due to prevailing discount.

9. In respect of subsidiary OVL, balances with banks as on 30th June, 2023 includes unutilised portion
of cash call of 201 crore (Z 334 crore as at March 31, 2023) lying in bank account of overseas
operators recorded based on joint interest billing (JIB) statements.

10. In respect of subsidiary OVL, Carry Interest and Interest accrued thereon, recoverable from the
National Oil Company [Empresa Nacional De Hidrocarbonates, E.P (ENH)] of Mozambique are
subject to balance confirmation from ENH. However, balance confirmation as on June 30, 2023 has
been received from the Operator of the block (Total S.A, France). The management is confident that
the amount of carry interest and interest accrued thereon would be recovered in due course, being a
contractual obligation.

11. In respect of subsidiary OVL, in case of Area 1, Mozambique, wherein the OVL Group holds 16%
participating interest through its subsidiaries ONGC Videsh Rovuma Ltd and Beas Rovuma Energy
Mozambique Ltd., the operator intimated suspension of development activities due to declaration of
force majeure in the project on account of security threat in April 2021. Considering the force
majeure, capitalisation of borrowing cost has been suspended effective from April, 2021.
Accordingly, the said borrowing cost amounting to 314 Crore along with stand-by expenditures of
70 Crore incurred during the quarter ended June 30, 2023 has been charged to the Statement of
Profit and Loss.

12. In respect of Joint Venture ONGC Petro additions Limited (OPaL), the Company has incurred a net
loss after tax of 908 crore during the quarter ended June 30, 2023, accumulated losses to the tune
of 13,849 crore and Company is having negative working capital of 6,435 crore as of that date.
Net worth of the Company has come down to negative, stands at 227 crore as at June 30, 2023. In
spite of these conditions which may cast a doubt on the ability of the Company to continue as a going
concern, the management of OPaL is of the opinion that going concern basis of accounting is
appropriate in view of the cash flow forecasts and the plan, management has put in place.

13. Formula used for computation of:

a. Net worth (Total equity) = Equity share capital + Other equity + Non-Controlling Interest
b. Debt Equity Ratio = Total borrowings / Total equity.
c. Interest Service Coverage Ratio = Earnings before interest, tax and exceptional item / Interest
on borrowings (net of transfer to expenditure during construction).
d. Debt Service Coverage Ratio = Earnings before interest, tax and exceptional item / [Interest
on borrowings (net of transfer to expenditure during construction) + Principal repayments of
Long Term borrowings].
e. Current Ratio = Current assets / Current liabilities
f. Long term debt to Working capital = Non-current borrowings (including current maturity of
non-current borrowings) / Working capital (excluding current maturity of non-current
borrowings).
g. Bad debts to Accounts receivable Ratio = Bad debts / Average trade receivables.
h. Current liability Ratio = Current liabilities / Total liabilities.
i. Total debts to Total assets = Total borrowings / Total assets.
j. Debtors turnover = Revenue from operations / Average trade receivables.

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 k. Inventory turnover = Revenue from operations / Average inventories.
1. Operating Margin (%) = Earnings before interest, tax and exceptional items / Revenue from
operations.
m. Net Profit Margin (%) = Profit for the period / Revenue from operations.

14. Previous period's figures have been regrouped by the Company, wherever necessary, to conform to
current period's grouping.

By order of the Board

(Pomila aspal)
Director ( inance)

In terms of our report of even date attached

For SARC & Associates For Kalani & Co. For R.G.N. Price & Co.
Chartere ccountants Chartered Accountants Chartered Accountants
Firn o. 006085N Fir ii Reg. No: 000722C Firm Reg. No.002785S

(Pankaj Sharma) (Vikas Kumar Pa reek) (Aditya Kumar

Partner (M. No. 086433) Partner (M. No. 422687) Partner (M. No. 232444)

For S. Bhandari & Co. LLP For J Gupta & Co. LLP
Chartered Accountants Chartered Accountants
Firm Reg. No. 000560C/C400334 Firm Reg. No. 314010E/E300029

(P P Pareek) (Abhishek Raj)

Partner (M. No. 071213) Partner (M. No. 302648)

Place: New Delhi

Date: August 11, 2023

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