oil natural gas corpn ltd Auditors report

To the Members of Oil and Natural Gas Corporation Limited

Report on the Audit of the Standalone Financial Statements

1. Opinion

We have audited the accompanying Standalone Financial Statements of Oil and Natural Gas Corporation Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 201 3 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and its profit (including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.

2. Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing ("SAs") specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Standalone Financial Statements.

3. Emphasis of Matter

We draw attention to following Notes to the Standalone Financial Statements:-

i. Note No. 8.2 & 10.3, which explains that certain Discovered Small Fields (DSF) of the Company have been identified by DGH, MoPNG, GOI for bidding under DSF III, after considering the value of such fields as Nil. These identified contract areas have been awarded to the winning bidders (awardees) and the PML/PELs of these contract areas have been transferred to the said awardees. Accordingly, during the year, the company has charged off exploratory wells, development wells in progress and capital work in progress amounting to Rs.1,837.76 Million and reversed the accumulated impairment of Rs.1,718.77 Million on the said assets.

ii. Note No. 24.4 & 48.1.1.b, 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 Rs.15,581.52 Million up to 31 March 2023.

As mentioned in the said note, the Company shall continue to contest such disputed matters before various forums, however, considering the pending final decision in a similar matter by the Nine Judges Bench of Honble Supreme Court, which is yet to be constituted and keeping in view the considerable time elapsed, during the year, company has reviewed the entire issue and has decided to make 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 companys participating interest in the JV blocks where there are disputes amongst the JV partners. Accordingly, during the year, the Company has provided Rs.2,351.14 Million towards disputed taxes for the period from April 1, 2016 to March 31,

2022 together with interest thereon upto March 31,

2023 and being material has been disclosed as an exceptional item. Further, a similar provision of Rs.8,723.32 Million has also been made during the year for disputed taxes for the financial year 2022-23.

As further mentioned in the note, based on the legal

opinions, with respect to JV blocks where there are disputes with JV partners, the Service Tax/GST, if applicable on royalty, will required to be discharged by the JV partners in their respective share of participating interest, and pending resolution of the disputes, other partners share of disputed ST/GST on Royalty in such JV blocks together with interest upto March 31,2023 amounting to Rs.3,318.13 Million has not been considered by the company for provision and is disclosed as contingent liability.

The remaining disputed demand received by the company towards penalty and other differences of Rs.8,624.60 Million has also been disclosed as contingent liability.

As mentioned in the note, considering the experts opinion, the amount deposited under protest has been claimed by the company in the Income Tax return / in the ongoing assessment & appellate proceedings as an allowable expenditure under Income Tax Act, 1961 for the relevant earlier assessment years and has also been considered as an allowable expenditure while calculating the current tax. Deferred tax asset has also been created for Rs.79.86 Million in respect of the amounts yet to be deposited against the provision made for disputed taxes for the above periods.

iii. Note No. 48.1.1 d, 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 Governments interpretation of the Final Partial Award of Arbitral Tribunal (40% share of the Company amounting to USD 1,624.05 Million equivalent to Rs.33,415.71 Million, 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 recasting 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 Honble Delhi High Court seeking enforcement and execution of the October 12, 2016 FPA. BGEPIL / RIL contend that GOIs 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 Honble Delhi High Court concluded on August 4, 2022 and orders are awaited.

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 by DGH may be kept in abeyance and therefore no provision for the demand raised by DGH, amounting to USD 1,624.05 Million equivalent to Rs.33,415.71 Million has been considered necessary and has been treated as contingent liability.

Our opinion on the Standalone Financial Statements is not modified in respect of these matters.

4. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of these Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:

Key Audit Matter	How our audit addressed the matter
Evaluation of adequacy of provision for impairment for tangible and intangible assets
Management has assessed whether any provision needs to be recognised on account of impairment of tangible and intangible assets.	Our audit procedures included the following:
	Evaluated the appropriateness of managements identification of the CGUs, exploration and evaluation assets and tested the operating effectiveness of controls over the impairment assessment process, including indicators of impairment, as required by relevant financial reporting standards.
The Company reviews the carrying amount of its tangible and intangible assets (Oil and Gas Assets including Capital Work-in-Progress (CWIP) & Development Wells in Progress (DWIP), Other Property, Plant & Equipment (including Capital Works-in-Progress, Right of Use Assets) for the "Cash Generating Unit" (CGU) determined at the end of each reporting period to assess whether there is any indication that those assets have suffered any impairment loss.
	Reviewed the reasonableness of the judgments and decisions made by the management regarding assumptions (including the relevant regulatory guidelines) for Oil and Gas prices in future to identify whether there are indicators of possible management bias and accordingly relied upon the managements assumptions for Oil and Gas prices in future.
Oil and Gas price assumptions have a significant impact on CGU impairment assessments and are inherently uncertain. Furthermore, oil and gas prices are subject to increased uncertainty, given regulatory guidelines including notified gas prices, impact of climate change and the global energy transition.
	Reviewed the appropriateness of discount rates used in the estimation.
	Relied on the technical assessment of the Management with regard to the Reserves and the Production profile of Oil and Gas, as shown to us by the management
The managements assumptions for prices of oil and gas in future are highly judgemental and may not be reflective of above factors, leading to a risk of material misstatement of the financial performance and position.
	Performed testing of the mathematical accuracy of the cash flow models and checked the appropriateness of the related disclosures. We evaluated managements assessment and related calculations of impairment including comparison of the recoverable amount with the carrying amounts of respective CGUs in the books of accounts.
Given the long timeframes involved, certain recoverable amounts of assets are sensitive to the discount rate applied. Since the determination of appropriate discount rate is judgemental, there is a risk that discount rates may not reflect the return required by the market and the risks inherent in the cash flows being discounted, which may lead to a material misstatement.
	Perused the future plans related to exploration activities. Further, we have relied upon managements assessment that the Mining Lease (ML)/ Petroleum Mining Lease (PML) shall be re-granted, wherever expired/ is expiring in near future.
A key input to impairment assessments and valuations is the production forecast, in turn closely related to the Companys reserves estimates, production profile and field development assumptions with reference to Oil and Gas.
The determination of recoverable amount, being the higher of fair value less costs to sell and value- in use is based on the factors as discussed above, necessitating judgement on the part of management.

Key Audit Matter	How our audit addressed the matter
In case of exploration and evaluation assets including other Oil and Gas Assets, based on managements judgement, assessment for impairment is carried out when further exploration activities are not planned in near future or when sufficient data indicate that although a development is likely to proceed, the carrying amount of the exploration asset is unlikely to be recovered in full from successful development or by sale. Based on the above factors, we have considered the measurement of Impairment as Key Audit Matter.
Estimation of Decommissioning liability
(Refer Note 24 to the Standalone Financial Statements)
The Company has an obligation to restore and rehabilitate the Asset/fields operated upon by the Company at the end of their use. This decommissioning liability is recorded based on estimates of the costs required to fulfil this obligation.	Our audit procedures included the following:
	Evaluated the approach adopted by the management in determining the expected costs of decommissioning.
The provision is based upon current cost estimates and has been determined on a discounted basis with reference to current legal requirements and	Identified the cost assumptions used that have the most significant impact on the provisions and tested the appropriateness of these assumptions.
technology changes. At each reporting date the decommissioning liability is reviewed and re-	Reviewed the appropriateness of discount and inflation rates used in the estimation.
measured in line with changes in observable assumptions, timing and the latest estimates of the costs to be incurred at reporting date.	Verified the unwinding of interest as well as understanding if any restoration was undertaken during the year.
We have considered the measurement of decommissioning costs as Key Audit Matter as it requires significant management judgment, including accounting calculations and estimates that involves high estimation uncertainty.
	Relied upon the technical assessment with respect to the Production Profile as estimated by the management based on which the Terminal year of the Asset /fields for decommissioning has been estimated.
	Relied upon managements assessment that the Mining Lease (ML) / Petroleum Mining Lease (PML) would be regranted, till the terminal year of the field as estimated by the management.
	Relied on the judgments of the internal/ external experts for the purpose of technical /commercial evaluation.
	Assessed the appropriateness of the disclosures made in the financial statements.

Key Audit Matter	How our audit addressed the matter
Litigations and Claims
(Refer Note 48 to the Standalone Financial Statements)	Our audit procedures included the following:
	Understood Managements internal instructions, process and control for determining and estimating the tax litigations, other litigations and claims and its appropriate accounting and/or disclosure.
Litigation and claims are pending with multiple tax and regulatory authorities and there are claims from vendors/suppliers and employees which have not been acknowledged as debt by the Company (including Joint Operations).
	Discussed pending matters with the Companys personnel with respect to status of cases of litigation and claims.
In the normal course of business, financial interests or exposures may arise from pending legal/regulatory proceedings and from above referred claims not acknowledged as debt by the company. Whether a claim needs to be recognized as liability or disclosed as a contingent liability in the Standalone Financial Statements or is considered as remote, is dependent on a number of significant assumptions and judgments made by the management. The amounts involved are potentially significant and determining the amount, if any, to be recognized or disclosed in the financial statements, is inherently subjective.
	Assessed managements conclusions through understanding precedents set in similar cases, reviewed the recommendations of the internal committee specially formed by the management, placed reliance upon the expert opinions, wherever obtained by the management.
	We have assessed the adequacy and appropriateness of recognition, measurement, presentation and disclosure of the Contingent liabilities in the Standalone Financial Statements.
We have considered Litigations and claims as Key Audit Matter because the estimates on which these amounts are based involve a significant degree of management judgment, including accounting estimates that involves high estimation uncertainty.

Key Audit Matter	How our audit addressed the matter
Information Technology and General Controls
The Company is dependent on its Information Technology ("IT") systems for processing and recording its transactions, including financial reporting processes.	In assessing the integrity of the IT systems relevant for financial reporting, we obtained an understanding of the IT infrastructure and IT systems relevant to the Companys financial reporting process for evaluation and testing of relevant IT general controls and IT application controls (‘SAP), through inquiries with the management and review of the reports of the Information system control audits done by a third party.
Appropriate IT general controls and application controls are required to ensure that such IT systems are able to process the data, as required, completely, accurately and consistently for reliable financial reporting.
	Access rights were tested over applications, operating system, on a sample basis, which are relied upon for financial reporting. We further tested segregation of duties, including preventive controls to ensure that access to change applications, the operating system or databases in the production environment were granted only to authorized personnel.
IT application controls are critical to ensure that changes to applications / files / information and underlying data are made in an appropriate manner and under controlled environment. Appropriate controls contribute to mitigating the risk of potential fraud or errors as a result of changes to applications and data.
	Our audit included making necessary inquiries with the management, scrutiny of the report on ‘IT audit and security by a third-party expert, access security (including controls over privileged access), segregation of duties and delegation of authority.
MIS reports, relevant for financial reporting, have been developed and tested through internal and outsourced support arrangements and ultimately authenticated by the users.
During the year, the Company transitioned to SAP HANA and on account of the pervasive use of its IT systems and related control environment on the Companys financial reporting process, the testing of the general computer controls of the IT systems used in financial reporting has been considered to be a Key Audit Matter.
	In response to the above IT requirements, enhancement of functionalities in IT System made during the year, we performed the following:
	- reviewed controls and performed additional substantive procedures of key general ledger account reconciliations.
	- observed that training sessions are also provided to users, to enable full utilization of SAP functionalities.
	Reviewed key automated and manual business cycle controls and logic for the reports generated through the IT infrastructure including those relating to MIS, that were relevant for financial reporting or were used in the exercise of internal financial controls with reference to financial statement, including testing of the compensating controls or alternate procedures to assess whether there were any unaddressed IT risks that would materiality impact the Standalone Financial Statements.

5. Other Matters

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

ii. As mentioned in Note No. 46.1.3, the Standalone Financial Statements include the Companys share in the total value of assets, liabilities, expenditure and income of 194 blocks under New Exploration Licensing Policy (NELP)/ Hydrocarbon Exploration and Licensing Policy (HELP) / Discovered Small Fields (DSFs)/ Open Acreage Licensing Policy (OALPs) and Joint Operations (JO) accounts for exploration and production out of which:

a. 10 NELPs/ HELPs/ JOs accounts have been certified by other Chartered Accountants. In respect of these NELPs/ HELPs/ JOs, Standalone Financial Statements include proportionate share in assets and liabilities as on March 31, 2023 amounting to Rs.9,931.05 Million and Rs.0,111.16 Million respectively and revenue and profit/(loss) including other comprehensive Income for the year ended March 31, 2023 amounting to Rs.10,395.89 Million and Rs. (2,248.21) Million respectively. Our opinion is based solely on the certificate of the other Chartered Accountants.

b. 15 NELPs / HELPs/ JOs have been certified by the management in respect of NELPs / HELPs/ JOs operated by other operators. In respect of these NELPs / HELPs/ JOs, Standalone Financial Statements include proportionate share in assets and liabilities as on March 31,2023 amounting to Rs.,977.15 Million and Rs.1,035.80 Million respectively and revenue and profit/(loss) including other comprehensive Income for the year ended March 31, 2023 amounting to Rs.9.52 Million and Rs. (3,956.19) Million respectively. Our opinion is based solely on management certified accounts.

iii. The Company has availed certain Working Capital Loans from the banks against the lien/security of Term Deposits, total sanctioned limits of such loans was Rs.06,585 Million as mentioned in Note No. 27.1 to

the Standalone Financial Statements. The charge on such loans, as required by section 77 of the Act, has not been registered/created by the company with the Registrar of Companies (MCA).

iv. The Standalone Financial Statements of the Company for the year ended March 31, 2022 were audited by joint auditors of the Company, two of which were the predecessor audit firms, and have expressed an unmodified opinion dated May 28, 2022 on such standalone financial statements.

Our opinion on the Standalone Financial Statements is not modified in respect of these matters.

6. Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexures to Boards Report, Management Discussion and Analysis, Business Responsibility Report and Report on Corporate Governance but does not include the Standalone Financial Statements and our auditors report thereon. The above-referred information is expected to be made available to us after the date of this audit report.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions necessitated by the circumstances and the applicable laws and regulations.

7. Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with

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respect to the preparation and presentation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate Internal Financial Controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

8. Auditors Responsibilities for the Audit of Standalone Financial Statements

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

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

• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate Internal Financial Controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to

evaluate the effect of any identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe

these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

9. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in "Annexure-1" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. Based on verification of books of accounts of the Company and according to information and explanations given to us, we give below a report on the Directions issued by the Comptroller and Auditor General of India in terms of Section 143(5) of the Act:

Directions u/s 143(5) of the Act for year 2022-23	Auditors reply on the action taken on the directions
1) Whether the Company has system in place to process all the accounting transactions through IT systemRs. If yes, the implication of processing of accounting transaction outside IT System on the integrity of the accounts along with the financial implications, if any, may be stated.	Yes, the Company has system in place to process all the accounting transactions through IT system, namely SAP Based on the audit procedures carried out and as per the information and explanations given to us, no accounting transactions have been processed / carried outside the IT system. Accordingly, there are no implications on the integrity of the accounts.
2) Whether there is any restructuring of an existing loan or cases of waiver/ write-off of debts/ loans/ interest etc. made by a lender to the company due to the Companys inability to repay the loanRs. If yes, the financial impact may be stated. Whether such cases are properly accounted forRs. (In case, lender is a Government Company, then this direction is also applicable for statutory auditor of lender Company)	Loan/Debt where Company is borrower: Based on the audit procedures carried out and as per the information and explanations given to us, there were no cases of restructuring or waivers / write-off of debts/ loans/ interest etc. by any lender, due to the companys inability to repay the loan during the FY 2022-23. Loan/Debt where Company is lender: Based on the audit procedures carried out and as per the information and explanations given to us, there were no cases of restructuring or waivers / write-off of debts/ loans/ interest etc. during the FY 2022-23 with regard to amounts lent by the company to the other parties.
3) Whether funds (Grant/ subsidy etc.) received/ receivable for specific schemes from Central/ State agencies were properly accounted for/ utilized as per its term and conditionsRs. List the cases of deviation.	Based on the audit procedures carried out and as per the information and explanations given to us, the funds (Grant/ subsidy) received/ receivable for specific schemes from Central/ State agencies were properly accounted for/ utilized as per its term and conditions.

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3. As required by Section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and Cash Flows dealt with by this Report are
in agreement with the books of account;

d. In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS
specified under Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended;

e. As per Notification number G.S.R. 463(E) dated 5th June, 2015 issued by Ministry of
Corporate Affairs, section 164(2) of the Act regarding the disqualifications of Directors
is not applicable to the Company, since it is a Government Company;

f. With respect to the adequacy of the Internal Financial Controls with reference to
Standalone Financial Statements of the Company and the operating effectiveness of such
controls, refer to our separate report in "Annexure 2";

g. As per Notification number G.S.R. 463 (E) dated 5th June, 2015 issued by Ministry of
Corporate Affairs, section 197 of the Act regarding remuneration to director is not
applicable to the Company, since it is a Government Company; and

h. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31.03.2023 on its
financial position in its Standalone Financial Statements - Refer Note No.

48.1.1 to the Standalone Financial Statements;

ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses- Refer Note 55 to the Standalone
Financial Statements;

iii. There has been no delay in transferring amounts,

required to be transferred, to the Investor Education and Protection Fund by the
Company.

iv. (a) The Management has represented that, to the best of its knowledge and belief,
as disclosed in Note No. 45.2 to the Standalone Financial Statements, no funds (which are
material either individually or in the aggregate) have been advanced or loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented, that, to the best of its knowledge and belief, as
disclosed in Note No. 45.2 to the Standalone Financial Statements, no funds (which are
material either individually or in the aggregate) have been received by the Company from
any person or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and

(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.

v. (a) The final dividend proposed for the previous year, declared and paid by the
Company during the year is in accordance with Section 123 of the Act.

(b) The interim dividend declared and paid by the Company during the year is in
accordance with Section 123 of the Act.

(c) As stated in Note No. 21.4 to the Standalone Financial Statements, the Board of
Directors of the Company has proposed final dividend for the year which is subject to the
approval of the members at the ensuing Annual General Meeting. The amount of dividend
proposed is in accordance with section 123 of the Act to the extent it applies to
declaration of dividend.

Annexure-1 to the Independent Auditors Report on the Standalone Financial Statements
of Oil and Natural Gas Corporation Limited for the year ended on 31 March 2023 (Referred
to in paragraph 9(1) under ‘Report on Other Legal and Regulatory Requirements

section of our report of even date)

i. In respect of the Companys Property, Plant and Equipment (PPE) and Intangible
Assets:

a. • The Company has generally maintained proper records showing full particulars,
including quantitative details and situation of PPE and relevant details of right-of-use
assets covered under Ind AS 116, ‘Leases.

• The Company has generally maintained proper records showing full particulars of
intangible assets.

b. As per the information and explanations given to us and on the basis of our
examination of the records of the Company, the PPE (other than those which are
underground/ submerged/ under joint operations) have been physically verified by the
management in a phased manner to cover all items over a period of three years, which in
our opinion is reasonable, having regard to the size of the Company and nature of its
business. No material discrepancies were noticed on such verification.

c. According to the information and explanations given to us, we report that the
title/lease deeds of immovable properties (other than properties where the company is the
lessee and the lease agreements are duly executed in favour of the lessee) are held in the
name of Company except in the cases as reported in attached Appendix-1.

d. According to the information and explanation given to us and on the basis of our
examination of the records, the Company has not revalued its Property, Plant and Equipment
(including Right of Use assets) and intangible assets during the year. Accordingly,
reporting under clause 3(i)(d) of the Order is not applicable.

e. According to the information and explanation given to us and on the basis of our
examination of the records of the company, there are no proceedings initiated during the
year or are pending against the Company as at 31 March 2023 for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made thereunder.

ii. (a) The inventory (excluding inventory lying with third parties, inventory under
joint operations and material in transit) has been physically verified by the management
in a phased manner at reasonable intervals to cover all items over a period of three
years. According to the information and explanations given to us and based on the audit
procedures performed by us, we are of the opinion that the coverage and procedure of such
verification by the management is appropriate and no material discrepancies of 10% or more
in the aggregate for each class of inventory between physical inventory and book records
were noticed on such physical verification.

(b) According to the information and explanation given to us and on the basis of our
examination of the records of the company, during the year the company has been sanctioned
working capital limits in excess of five crore rupees, in aggregate, from Banks on the
basis of security of Term Deposits. According to the information and explanation given to
us and on the basis of our examination, there was no requirement of filing any quarterly
returns or statements by the company with such Banks, hence reporting under clause
3(ii)(b) of the Order is not applicable.

iii. The company has made investments in, provided guarantee to Companies during the
year, in respect of which:

(a) According to the information and explanations given to us, during the year, the
Company has not provided loans or provided advances in the nature of loan or provided
security to any entity. The company has provided guarantee during the year to the
entities, in respect of which:

(A) the aggregate amount during the year, and balance outstanding at the balance sheet
date with respect to such guarantees for subsidiaries, joint ventures and associates are
as follows:

Independent Auditors Report

223

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Rs. in Millions)

Sl. No.
Particulars
Guarantees*

Aggregate amount granted/ provided during the year
Balance outstanding as at 31.03.2023

1.
Subsidiaries
214,305.07
399,201.48

2.
Joint Ventures
61,337.57
79,746.85

3.
Associates
-
-

Represents backstopping arrangements accounted for as liability and financial
guarantees

The Company has not provided any loans or advances in the nature of loan or security to
any Subsidiaries, Joint Ventures and Associates during the year.

(B) In our opinion and according to information and explanations given to us, the
Company has not given loans or advances or guarantees or security to parties other than
subsidiaries, joint ventures and associates during the period under Audit. However,
company had granted unsecured loan of Rs.00 Million to Hindustan Antibiotics Limited in
the past, the outstanding book balance as on March 31, 2023 stands at Rs.93.37 Million
(including interest). As the recovery of this loan was doubtful, the company had made full
provision against such doubtful loan during FY 2009-10.

(b) In our opinion and according to information and explanations given to us, the
investments made and guarantees provided during the year and the terms and conditions of
the grant of such guarantees are prima facie not prejudicial to the companys interest.
The company has not given any security or granted any loans and advances in the nature of
loans during the year.

(c) The company has not granted any loans and advances in the nature of loans during
the year, hence reporting under clause 3(c) of the Order is not applicable.

(d) Since the company has not granted any loans and advances in the nature of loans
during the year, hence reporting under clause 3(d) of the Order is not applicable.
However, as reported above there is an overdue amount in respect of loan of Rs.00 Million
granted to Hindustan Antibiotics Limited in the past, the outstanding overdue book balance
as on March 31, 2023 for more than ninety days stands at Rs.93.37 Million (including
interest). According to the information and explanation given to us and based on the audit
procedures performed by us, reasonable steps are being taken by the company for recovery
of the principal and interest.

(e) In our opinion and according to information and

explanations given to us and based on the audit procedures performed by us, no loan or
advance in the nature of loan granted which has fallen due during the year, has been
renewed or extended or fresh loans granted to settle the overdue of existing loans given
to the same parties.

(f) In our opinion and according to information and explanations given to us and
based on the audit procedures performed by us, the company has not granted any loans or
advances during the year in the nature of loans either repayable on demand or without
specifying any terms or period of repayment.

iv. In our opinion and according to the information and explanations given to us,
the Company has not advanced loans to directors / to a Company in which the Director is
interested to which provisions of section 185 of the Act apply. In our opinion and
according to the information and explanations given to us, the provisions of section 186
of the Act are not applicable to the Company.

v. In our opinion and according to information and explanations given to us, the
Company has not accepted any deposits from the public and hence provisions of Sections 73
to 76 and other relevant provision of the Act and Companies (Acceptance of Deposits)
Rules, 2014 are not applicable.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to
the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the
Central Government under sub section (1) of section 148 of the Act and we are of the
opinion that prima facie the prescribed accounts and records are being made and updated on
regular basis. However, we have not made a detailed examination of the cost records with
the view to determine whether they are accurate or complete.

vii. a. In our opinion and according to information and explanations given to us and
based on the audit procedures performed by us, the undisputed statutory dues including
Goods and Services Tax,

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Provident Fund, Employees State Insurance, Income- Tax, Sales-Tax, Service Tax, Duty
of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues have
generally been regularly deposited by the company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31, 2023 for a period more
than six months from the date of becoming payable.

b. According to the information and explanations given to us, the particulars of the
dues of Goods and Services Tax, Provident Fund, Employees State Insurance, Income-Tax,
Sales-Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess or other
statutory dues, which have not been deposited by the company on account of any disputes
pending before appropriate authorities are detailed in attached Appendix-2.

viii. According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income-tax Act, 1961 as income during the year. Accordingly,
the reporting under clause 3(viii) of the Order are not applicable.

ix. (a) In our opinion and according to the information and explanations given to
us, the Company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of
our audit procedures, we report that the company has not been declared wilful defaulter by
any bank or financial institution or other lender.

(c) In our opinion and according to the information and explanations given to us,
the term loans were applied for the purposes for which the loans were obtained.

(d) According to the information and explanations given to us, and the procedures
performed by us, and on an overall examination of the financial statements of the company,
we report that no funds raised on short-term basis have been used for long-term purposes
by the Company.

(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the company, we report that the company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries, associates or joint ventures. Accordingly, reporting under clause
3(ix)(e) of the Order is not applicable.

(f) According to the information and explanations given to us and procedures
performed by us, we report that the company has not raised loans during the year on the
pledge of securities held in its subsidiaries, joint ventures or associate companies.
Accordingly, reporting under clause 3(ix)(f) of the Order is not applicable.

x. (a) The company has not raised money by way of initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us, the Company has not
made any preferential allotment or private placement of shares or convertible debentures
(fully, partially or optionally convertible) during the year and hence reporting under
clause 3(x)(b) of the Order is not applicable.

xi. (a) According to the information and explanations given to us and as represented
by the management and based on our examination of the books and records of the company
carried out in accordance with generally accepted auditing practices in India, and as
mentioned in Note No. 24.5 of the accompanying Standalone Financial Statement, there have
been reported instances of fraud on the company by way of misappropriation of funds
through payment against fictitious medical bills by certain employees and other personnel
in collusion with some of the vendors and service providers. In this regard investigation
by various authorities including external agencies are going on and till date an amount of
Rs..41 Million has been identified as fraud on the company and the said recoverable amount
has been provided for. The accompanying Standalone Financial Statement does not include
any possible adjustment that may arise in future pursuant to outcome of the various
ongoing investigations.

According to the information and explanations given to us and as represented by the
management and based on our examination of the books and records of the company carried
out in accordance with generally accepted auditing practices in India, no fraud by the
Company has been noticed or reported during the year.

(b) We have not submitted any report under

subsection (12) of section 143 of the Companies Act, 2013 in Form ADT-4 as prescribed
under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government,
during the year and up to the date of this audit report.

(c) We have taken into consideration the Whistle blower complaints received by the
Company during the year and provided to us, when performing the audit.

xii. According to information and explanation given to us, in our opinion, the Company
is not a Nidhi Company. Therefore, the reporting under clause 3(xii) of the Order is not
applicable to the Company.

xiii. According to the information and explanations given by the management and based
on our examination, the transactions with the related parties are in compliance with
section 177 and 188 of the Act, where applicable. The Company has disclosed the details of
the related party transactions in the Notes to the Standalone Financial Statements, as
required by the applicable Indian Accounting Standards.

xiv. (a) The Company has an internal audit system manned by inhouse internal audit
department, which is commensurate with the size and nature of its business. In our
opinion, the audit process needs to be further strengthened in the areas having risk of
frauds like instances of payment against fictitious medical bills (as reported under
clause xi (a) aforesaid) and procurement of material/services.

(b) As per the internal audit plan approved by the Board of Directors of the Company,
internal audit is performed in a year in periodical cycles covering the current financial
year and previous periods. We have considered the internal audit reports issued during the
year under audit and till date, in determining the nature, timing and extent of our audit
procedures.

xv. In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with the directors or persons
connected with them covered under Section 192 of the Act. Accordingly, reporting under
clause 3(xv) of the Order is not applicable to the company.

xvi. (a) In our opinion and according to the information and explanations given to us,
the Company is not required to be registered under Section 45-IA of the Reserve Bank of
India Act, 1934. Accordingly, reporting under clause 3(xvi)(a) of the Order is not
applicable to the Company.

(b) According to the information and explanations provided to us, the Company has not
conducted any Non-Banking Financial or Housing Finance activities therefore the Company is
not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, reporting under clause 3(xvi)(b) of the Order is not applicable to the
Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, reporting under clause 3(xvi)(c) of the
Order is not applicable to the Company.

(d) In our opinion, there is no core investment company within the Group (as defined in
the Core Investment Companies (Reserve Bank) Directions, 2016). Accordingly, reporting
under clause 3(xvi)(d) of the Order is not applicable to the Company.

xvii. Based on our examination of the books and records of the Company, the Company has
not incurred cash losses in the financial year and in the immediately preceding financial
year. Accordingly, reporting under clause 3(xvii) of the Order is not applicable to the
Company.

xviii. There has been no resignation of the Statutory Auditors during the year.
Accordingly, reporting under clause 3(xviii) of the Order is not applicable to the
Company.

xix. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
Company is not capable of meeting its liabilities existing at the date of Balance Sheet as
and when they fall due within a period of one year from the Balance Sheet date. We,
however, state that this is not an assurance as to the future viability of the Company. We
further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due
within a period of one year from the balance sheet date, will get discharged by the
Company as and when they fall due.

xx. a) In our opinion and according to the information and explanations given to us,
there are no unspent
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Integrated Annual Report 2022-23

amounts towards Corporate Social Responsibility previous financial year, to a Special
account within a (CSR) on other than ongoing projects requiring a period of 30 days from
the end of the said financial transfer to a Fund specified in Schedule VII to the Act year
in compliance with the provision of section in compliance with second proviso to
sub-section 135(6) of the Act.

(5) of Section 135 of the Act. Accordingly, reporting under clause 3(xx)(a) of the
Order is not applicable for the year.

(b) In respect of ongoing projects, the Company has transferred unspent CSR amount as
at the end of the

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

Sd/-(Pankaj Sharma)
Partner (M. No. 086433)
UDIN: 23086433BGZHXI3846
Sd/- Sd/- (Bhupender Mantri) (G. Surendranath Rao)
Partner (M. No. 108170) Partner (M. No. 022693)
UDIN: 23108170BGYFDI5237 UDIN: 23022693BGRKRL4603

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

Sd/-(Sudha Jaideep Shetty)
Partner (M. No. 047684)
UDIN: 23047684BGWZFF8378
Sd/- (Abhishek Raj)
Partner (M. No. 302648)
UDIN: 23302648BGYBER6797

Dated: 26 May 2023 Place: New Delhi

?

Independent Auditors Report

227

by 2038

Annexure - 2 to Independent Auditors Report

(Referred to in paragraph 9 (3) (f) under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)

Report on the Internal Financial Controls with reference to Standalone Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the Act

To the Members of Oil and Natural Gas Corporation Limited

We have audited the Internal Financial Controls with reference to Standalone Financial
Statements of Oil and Natural Gas Corporation Limited ("the Company") as of
March 31,2023 in conjunction with our audit of the Standalone Financial Statements of the
Company for the year ended on that date.

Managements Responsibilities for Internal Financial Controls

The Companys Management and the Board of Directors are responsible for establishing
and maintaining Internal Financial Controls with reference to the Standalone Financial
Statements based on the internal control over financial reporting criteria established by
the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by
the Institute of Chartered Accountants of India. These responsibilities include the
design, implementation and maintenance of adequate Internal Financial Controls that were
operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the Companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys Internal Financial
Controls with reference to Standalone Financial Statements based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting (the "Guidance Note") issued by the Institute
of Chartered Accountants of India and the Standards on Auditing as specified under section
143(10) of the Act, to the extent applicable to an audit of Internal Financial Controls
with reference to Standalone Financial Statements. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and
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Integrated Annual Report 2022-23

perform the audit to obtain reasonable assurance about whether adequate Internal
Financial Controls with reference to Standalone Financial Statements was established and
maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of
the Internal Financial Controls with reference to Standalone Financial Statements and
their operating effectiveness. Our audit of Internal Financial Controls with reference to
Standalone Financial Statements included obtaining an understanding of such Internal
Financial Controls, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the Standalone Financial Statements,
whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys Internal Financial Controls with
reference to Standalone Financial Statements.

Meaning of Internal Financial Controls with reference to Standalone Financial
Statements

A Companys Internal Financial Control with reference to Standalone Financial
Statements is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of Standalone Financial Statements for external
purposes in accordance with generally accepted accounting principles. A Companys Internal
financial control with reference to Standalone Financial Statements includes those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of
the Company; (2) provide reasonable assurance that transactions are recorded as necessary
to permit preparation of Standalone Financial Statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of

the Company are being made only in accordance with authorizations of management and
directors of the Company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or disposition of the Companys assets
that could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to financial
statements

Because of the inherent limitations of Internal Financial Controls with reference to
Standalone Financial Statements, including the possibility of collusion or improper
management, override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the Internal Financial
Controls with reference to Standalone Financial Statements to future periods are subject
to the risk that the Internal Financial Control with reference to Standalone Financial
Statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate Internal
Financial Controls with reference to Standalone Financial Statements and such Internal
Financial Controls with reference to Standalone Financial Statements were operating
effectively as at March 31,2023, based on the criteria for Internal Financial Control over
financial reporting established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India.

Appendix-1

(As referred in clause No. (i)(c) of Annexure -1 to the Independent Auditors Report)
Cases where the title/lease deeds of immovable properties are not held in the name of
Company as on 31-03-2023

Description of property
Gross Carrying Value (in Rs. Millions)
Held in the name of
Whether promoter, director or their relative or employee
Period held - indicate range, where appropriate
Reason for not being held in name of company

Building/ Flats
18.38
Seller-Co-op Housing Society
No
29.02.1984
Pursuant to Registrars order, registration is under process.

Building/ Flats
28.62
Seller- Industrial/ Infrastructure Development Corporation
No
29.02.1984
Registration under process.

Building/ Flats
1.87
Seller-State Development Authority
No
29.02.1984
Registration under process.

Building/ Flats
70.96
Seller-State Development Authority
No
31.03.2001
Registration under process.

Building/ Flats
4.80
Seller-Co-op Housing Society
No
29.02.1984
Registration under process.

Building
155.01
Seller- State Development Authority
No
01.04.1985
Matter pending with Metropolitan Development Authority

Land
0.02
Seller(s)-Individual(s)
No
17.08.2011
Registration under process

Land
0.18
Seller(s)-Individual(s)
No
06.03.2012
Registration under process

Land
0.08
Seller(s)-Individual(s)
No
18.05.2012
Registration under process

Land
37.47
Seller(s)-Individual(s)
No
30.09.2015
Registration under process

Land
1,272.01
Seller- Industrial/ Infrastructure Development Corporation
No
22.04.2016
Sale Deed will be executed on commissioning of project as per the terms
of agreement.

Land-leasehold
367.33
Seller- Industrial/ Infrastructure Development Corporation
No
30.09.1996
Registration under process.

Land-Leasehold
47.14
Seller- Industrial/ Infrastructure Development Corporation
No
28.10.1985
Matter subjudice at High Court.

Description of property
Gross Carrying Value (in Rs. Millions)
Held in the name of
Whether promoter, director or their relative or employee
Period held - indicate range, where appropriate
Reason for not being held in name of company

Land-Leasehold
36.25
Seller- Industrial/ Infrastructure Development Corporation
No
29.02.1984
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
15.16
Seller- Industrial/ Infrastructure Development Corporation
No
10.03.1983
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
5.24
Seller- Industrial/ Infrastructure Development Corporation
No
10.03.1983
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
1.02
Seller- Industrial/ Infrastructure Development Corporation
No
02.07.1982
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
29.90
Seller- Industrial/ Infrastructure Development Corporation
No
05.11.1979
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
75.46
Seller- Industrial/ Infrastructure Development Corporation
No
01.10.1982
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
0.44
Seller- Industrial/ Infrastructure Development Corporation
No
25.05.1987
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
5.80
Seller- Industrial/ Infrastructure Development Corporation
No
07.05.1987
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
0.34
Seller- Industrial/ Infrastructure Development Corporation
No
30.11.1987
Matter pending with State City and Industrial Development Corporation

Land-Leasehold
1.28
Seller- State Development Authority
No
31.01.1994
Matter pending with State Housing Development Authority

Land-Leasehold
3.69
Seller- State Development Authority
No
31.01.1994
Matter pending with State Housing Development Authority

Appendix-2

(As referred in clause No. (vii)(b) to in Annexure -1 to the Independent Auditors
Report)

Details of disputed Statutory Dues

(Amount in Rs. Million)

Name of Statute
Forum where Dispute is pending
Period to which the amount relates (Financial Year)
Gross Amount
Involved
Amount paid under protest
Amount Unpaid

Mineral Cess, Andhra Pradesh
Hon. Supreme Court
2005-06
3,538.42
-
3,538.42

Total (A)
3,538.42
-
3,538.42

Central Excise Act, 1944
Commissioner
2016-17
18.73
-
18.73

Custom, Excise and Service Tax Appellate Tribunal
2016-17; 2018-19
104.68
26.96
77.72

Hon. High Court
2012-13 to 2014-15
7,321.84
-
7,321.84

Hon. Supreme Court
2001-02; 2006-07 to 2008-09
518.54
-
518.54

Total (B)
7,963.79
26.96
7,936.83

The Customs Act, 1962
Custom , Excise and Service Tax Appellate Tribunal
2007-08; 2012-13; 2018-19; 2020-21
118.42
1.00
117.42

Hon. Supreme Court
2015-16
1.50
-
1.50

Total (Rs.)
119.92
1.00
118.92

Employee Provident Fund
Tribunal
1986-87
66.35
49.76
16.59

Total (D)
66.35
49.76
16.59

Income Tax Act, 1961
Commissioner/ (Appeals) and Additional Commissioner/ ITO
2009-10; 2012-13 to 2017-18
2,16,947.19
2,16,947.19
-

Income Tax Appellate Tribunal
2007-08; 2009-10 to 2011-12;
1,20,391.65
1,20,391.65
-

Hon. High Court
2000-01
8.91
-
8.91

Total (E)
337,347.75
337,338.84
8.91

Goods and Services Tax
Departmental Forum/ Adjudicating Authority
2017-18; 2018-19; 2020-21 to 2022-23
43,762.55
41,480.36
2,282.19

First Appellate Authority/ Commissioner Appeals
2018-19 to 2021-22
9,233.61
9,096.19
137.42

Tribunal*/CESTAT (*yet to be constituted)
2017-18 to 2021-22
52,296.48
51,545.43
751.05

High Court
2017-18 to 2022-23
40,034.52
-
40,034.52

Total (F)
145,327.16
102,121.98
43,205.18

State Municipal Tax
First Appellate Authority
1998-99; 19992000; 2017-18
177.28
-
177.28

Hon. High Court
2000-01; 2004-05; 2006-07; 2017-18
107.80
4.30
103.50

Total (G)
285.08
4.30
280.78

Name of Statute
Forum where Dispute is pending
Period to which the amount relates (Financial Year)
Gross Amount
Involved
Amount paid under protest
Amount Unpaid

Department of Geology
1992-93; 19961997; 2004-05
496.82
-
496.82

Royalty
Directorate General of Hydrocarbons (DGH)
2022-23
5,922.04
-
5,922.04

Total (H)
6,418.86
-
6,418.86

Commissioner/ Joint Commissioner/Commissioner -Appeals/ Joint
Commissioner- Appeals
2000-01; 2001-02; 2005-06 to 200708; 2009-10 to 2012-13; 2014-15 to
2017-18
2,268.02
90.11
2,177.91

Central Sales Tax Act1,956 and Respective States Sales Tax Acts
Appellate Tribunal/ First Appellate Authority
1996-97; 1998-99; 1999-2000; 200102 to 2006-07; 2009-10 to 2015-16
1,7147.11
67.83
17,079.28

Hon. High Court
2006-07; 2012-13
23.21
15.61
7.60

Hon. Supreme Court
2002-03 to 200809; 2012-13; 201617
11,607.75
623.96
10,983.79

Total (I)
31,046.09
797.51
30,248.58

First Appellate Authority
2017-18
2.93
1.57
1.36

Agriculture Land Tax
Hon. High Court
1995-16; 1998-9; 2005-06; 2009-10; 2018-19; 2020-21
15,967.97
-
15,967.97

Total (J)
15,970.90
1.57
15,969.33

Commissioner/ (Appeals), Joint Comm., Additional Comm. of Custom, Excise
and Service Tax, Director General
2006-07; 2007-08; 2011-12 to 2017-18
13,196.50
0.67
13,195.83

Finance Act, 1994 (Service Tax)
Custom, Excise and Service Tax Appellate Tribunal/ First Appellate
Authority
2003-04; 2005-06 to 2012-13; 201415 to 2017-18
37,146.19
10,636.53
26,509.66

Hon. High Court
2012-13; 2015-16; 2016-17
6,503.93
2,869.89
3,634.04

Total (K)
56,846.62
13,507.09
43,339.53

Grand Total (A+B+Rs.+D+E+F+G + H+I+J+K)
604,930.94
453,849.01
151,081.93}}}

oil natural gas corpn ltd Auditors report

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Risk Disclosure on Derivatives

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MARKET

IDEAS

MUTUAL FUNDS

TRADING DOCUMENTATION

CALCULATOR

GLOSSARY (A-Z)

ATTENTION INVESTORS

Risk Disclosure on Derivatives

We are ISO 27001:2013 Certified.

Sl. No.	Particulars	Guarantees*
Sl. No.	Particulars	Aggregate amount granted/ provided during the year	Balance outstanding as at 31.03.2023
1.	Subsidiaries	214,305.07	399,201.48
2.	Joint Ventures	61,337.57	79,746.85
3.	Associates	-	-

For SARC & Associates Chartered Accountants Firm Reg. No.: 006085N	For Kalani & Co. For R.G.N. Price & Co. Chartered Accountants Chartered Accountants Firm Reg. No.: 000722C Firm Reg. No.: 002785S
Sd/- (Pankaj Sharma) Partner (M. No. 086433) UDIN: 23086433BGZHXI3846	Sd/- Sd/- (Bhupender Mantri) (G. Surendranath Rao) Partner (M. No. 108170) Partner (M. No. 022693) UDIN: 23108170BGYFDI5237 UDIN: 23022693BGRKRL4603
For S. Bhandari & Co LLP Chartered Accountants Firm Reg. No.: 000560C/C400334	For J Gupta & Co LLP Chartered Accountants Firm Reg. No.: 314010E/E300029
Sd/- (Sudha Jaideep Shetty) Partner (M. No. 047684) UDIN: 23047684BGWZFF8378	Sd/- (Abhishek Raj) Partner (M. No. 302648) UDIN: 23302648BGYBER6797
Dated: 26 May 2023 Place: New Delhi

Description of property	Gross Carrying Value (in Rs. Millions)	Held in the name of	Whether promoter, director or their relative or employee	Period held - indicate range, where appropriate	Reason for not being held in name of company
Building/ Flats	18.38	Seller-Co-op Housing Society	No	29.02.1984	Pursuant to Registrars order, registration is under process.
Building/ Flats	28.62	Seller- Industrial/ Infrastructure Development Corporation	No	29.02.1984	Registration under process.
Building/ Flats	1.87	Seller-State Development Authority	No	29.02.1984	Registration under process.
Building/ Flats	70.96	Seller-State Development Authority	No	31.03.2001	Registration under process.
Building/ Flats	4.80	Seller-Co-op Housing Society	No	29.02.1984	Registration under process.
Building	155.01	Seller- State Development Authority	No	01.04.1985	Matter pending with Metropolitan Development Authority
Land	0.02	Seller(s)-Individual(s)	No	17.08.2011	Registration under process
Land	0.18	Seller(s)-Individual(s)	No	06.03.2012	Registration under process
Land	0.08	Seller(s)-Individual(s)	No	18.05.2012	Registration under process
Land	37.47	Seller(s)-Individual(s)	No	30.09.2015	Registration under process
Land	1,272.01	Seller- Industrial/ Infrastructure Development Corporation	No	22.04.2016	Sale Deed will be executed on commissioning of project as per the terms of agreement.
Land-leasehold	367.33	Seller- Industrial/ Infrastructure Development Corporation	No	30.09.1996	Registration under process.
Land- Leasehold	47.14	Seller- Industrial/ Infrastructure Development Corporation	No	28.10.1985	Matter subjudice at High Court.

Name of Statute	Forum where Dispute is pending	Period to which the amount relates (Financial Year)	Gross Amount Involved	Amount paid under protest	Amount Unpaid
Mineral Cess, Andhra Pradesh	Hon. Supreme Court	2005-06	3,538.42	-	3,538.42
Mineral Cess, Andhra Pradesh	Total (A)		3,538.42	-	3,538.42
Central Excise Act, 1944	Commissioner	2016-17	18.73	-	18.73
	Custom, Excise and Service Tax Appellate Tribunal	2016-17; 2018-19	104.68	26.96	77.72
	Hon. High Court	2012-13 to 2014-15	7,321.84	-	7,321.84
	Hon. Supreme Court	2001-02; 2006-07 to 2008-09	518.54	-	518.54
	Total (B)		7,963.79	26.96	7,936.83
The Customs Act, 1962	Custom , Excise and Service Tax Appellate Tribunal	2007-08; 2012-13; 2018-19; 2020-21	118.42	1.00	117.42
	Hon. Supreme Court	2015-16	1.50	-	1.50
	Total (Rs.)		119.92	1.00	118.92
Employee Provident Fund	Tribunal	1986-87	66.35	49.76	16.59
Employee Provident Fund	Total (D)		66.35	49.76	16.59
Income Tax Act, 1961	Commissioner/ (Appeals) and Additional Commissioner/ ITO	2009-10; 2012-13 to 2017-18	2,16,947.19	2,16,947.19	-
	Income Tax Appellate Tribunal	2007-08; 2009-10 to 2011-12;	1,20,391.65	1,20,391.65	-
	Hon. High Court	2000-01	8.91	-	8.91
	Total (E)		337,347.75	337,338.84	8.91
Goods and Services Tax	Departmental Forum/ Adjudicating Authority	2017-18; 2018-19; 2020-21 to 2022-23	43,762.55	41,480.36	2,282.19
	First Appellate Authority/ Commissioner Appeals	2018-19 to 2021-22	9,233.61	9,096.19	137.42
	Tribunal/CESTAT (yet to be constituted)	2017-18 to 2021-22	52,296.48	51,545.43	751.05
	High Court	2017-18 to 2022-23	40,034.52	-	40,034.52
	Total (F)		145,327.16	102,121.98	43,205.18
State Municipal Tax	First Appellate Authority	1998-99; 19992000; 2017-18	177.28	-	177.28
	Hon. High Court	2000-01; 2004-05; 2006-07; 2017-18	107.80	4.30	103.50
	Total (G)		285.08	4.30	280.78
Name of Statute	Forum where Dispute is pending	Period to which the amount relates (Financial Year)	Gross Amount Involved	Amount paid under protest	Amount Unpaid
	Department of Geology	1992-93; 19961997; 2004-05	496.82	-	496.82
Royalty	Directorate General of Hydrocarbons (DGH)	2022-23	5,922.04	-	5,922.04
	Total (H)		6,418.86	-	6,418.86
	Commissioner/ Joint Commissioner/Commissioner -Appeals/ Joint Commissioner- Appeals	2000-01; 2001-02; 2005-06 to 200708; 2009-10 to 2012-13; 2014-15 to 2017-18	2,268.02	90.11	2,177.91
Central Sales Tax Act1,956 and Respective States Sales Tax Acts	Appellate Tribunal/ First Appellate Authority	1996-97; 1998-99; 1999-2000; 200102 to 2006-07; 2009-10 to 2015-16	1,7147.11	67.83	17,079.28
	Hon. High Court	2006-07; 2012-13	23.21	15.61	7.60
	Hon. Supreme Court	2002-03 to 200809; 2012-13; 201617	11,607.75	623.96	10,983.79
	Total (I)		31,046.09	797.51	30,248.58
	First Appellate Authority	2017-18	2.93	1.57	1.36
Agriculture Land Tax	Hon. High Court	1995-16; 1998-9; 2005-06; 2009-10; 2018-19; 2020-21	15,967.97	-	15,967.97
	Total (J)		15,970.90	1.57	15,969.33
	Commissioner/ (Appeals), Joint Comm., Additional Comm. of Custom, Excise and Service Tax, Director General	2006-07; 2007-08; 2011-12 to 2017-18	13,196.50	0.67	13,195.83
Finance Act, 1994 (Service Tax)	Custom, Excise and Service Tax Appellate Tribunal/ First Appellate Authority	2003-04; 2005-06 to 2012-13; 201415 to 2017-18	37,146.19	10,636.53	26,509.66
	Hon. High Court	2012-13; 2015-16; 2016-17	6,503.93	2,869.89	3,634.04
	Total (K)		56,846.62	13,507.09	43,339.53
Grand Total (A+B+Rs.+D+E+F+G + H+I+J+K)			604,930.94	453,849.01	151,081.93