Oil & Natural Gas Corpn Ltd Auditor Reports

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, 2025, 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 ended on that date, and notes to the Standalone Financial Statements, including a summary of the material 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, 2013 (hereinafter referred to as "the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended, (hereinafter referred to as "Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, and its profit, other comprehensive income, 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 (hereinafter referred to as "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 (hereinafter referred to as "ICAI") 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 ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.

3. Emphasis of Matter i. Note No. 49.1.1(d), in respect of pending finality of Arbitration Tribunal Award on various issues related to Production Sharing Contract with respect to Panna-Mukta and Mid and South Tapti contract areas (PMT JV), demand of USD1,624.05 Million equivalent to

139,148.60 million as on March 31, 2025 ( 135,380.31 million up to March 31, 2024) on the Company, to the extent of the Companys participating interest in the PMT JV, by Directorate General of Hydrocarbons is considered as contingent liability for the reason stated in the said note. ii. Note no. 49.1.1(b), in respect of Service Tax / GST levied on royalty on crude oil and natural gas, though demands raised by the Tax Authorities on such Service Tax / GST have been disputed, the Company has accounted for the same as liability in the books. Further, disputed demand due to penalty and other differences on such taxes of Rs. 19,597.96 million ( 18,721.67 million up to March 31, 2024) and with respect to Joint Venture blocks, share of such taxes together with interest thereon of Rs. 32,898.57 million ( 52,964.04 million up to March 31, 2024) for other joint venture partners not paid by them till March 31, 2025 have been considered as contingent liabilities for the reasons stated in the said note. iii. Note no. 16.2, in respect of refund of Rs. 20,875.11 million ( 20,875.11 million up to March 31, 2024) of Terminal Excise Duty receivable from Director General of Foreign Trade, Government of India considered good and recoverable for the reason stated in the said note. Our opinion on the Standalone Financial Statements is not modified in respect of the above matters.

4. Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 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.

Sr. Key Audit Matter No.	How our audit addressed the matter
1 Evaluation of adequacy of provision for impairment for tangible and intangible assets	Our audit procedures included the following:
(Refer Note 48 to the Standalone Financial Statements)	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.
Management has assessed whether any provision needs to be recognized on account of impairment of tangible and intangible assets.	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 price future
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-inProgress, Right of Use Assets) for the "Cash Generating Unit"	Reviewed the appropriateness of discount rates used in the estimation.
(CGU) determined at the end of each reporting period to assess whether there is any indication that those assets have suffered any impairment loss.	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.
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.	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.
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.	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.
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.
A key input to impairment assessments and valuations is the production forecast, in turn closely related to the Companys reserves estimates, production profile, availability of customers for monetization 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.
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 actors, we have considered the measurement of Impairment as Key Audit Matter.
2 Estimation of Decommissioning liability	Our audit procedures included the following:
(Refer Note 24 to the Standalone Financial Statements)	Evaluated the approach adopted by the management in determining the expected costs of decommissioning.
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.	Relied upon managements assessment with respect to the cost assumptions used that have the most significant impact on the provisions.
The provision is based upon current cost estimates and has been determined on a discounted basis with reference to current legal requirements and technology changes. At each reporting date the decommissioning liability is reviewed and re-measured in line with changes in observable assumptions, timing and the latest estimates of the costs to be incurred at reporting date.	Reviewed the appropriateness of discount and inflation rates used in the estimation.
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.	Verified the unwinding of interest as well as understanding if any restoration was undertaken during the year.
	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.
	Performed testing of mathematical accuracy and assessed the appropriateness of the disclosures made in the financial statements.
3 Litigations and Claims
(Refer Note 49 to the Standalone Financial Statements)
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).	Our audit procedures included the following:
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 demands from tax and regulatory authorities and claims from vendors / suppliers are to be recognized as liability or disclosed as a contingent liability in the Standalone Financial Statements or 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.	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.
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.	Discussed pending matters with the Companys personnel with respect to status of cases of litigation and claims.
	Inquiry with the legal and tax departments regarding the status of most significant disputes and inspection of key relevant documentation.
	Review of opinion received from the experts where available.
	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.
4 Information Technology and General Controls	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.
The Company is dependent on its Information Technology ("IT") systems for processing and recording its transactions, including financial reporting processes.	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.
Appropriate IT general controls and application controls are required to ensure that such IT systems can process the data, as required, completely, accurately and consistently for reliable financial reporting.	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.
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.	In response to the above IT requirements, enhancement of functionalities in IT System made during the year, we performed the following:
On account of the pervasive use of 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.
	- 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 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 / Hydrocarbon Exploration and Licensing Policy ("HELP") and nominated blocks for under performance against agreed Minimum Work Programme. ii. As mentioned in Note No. 47.1.3, the Standalone Financial Statements include the Companys share in the total value of assets, liabilities, expenditure and income of 201 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. 9 blocks have been audited by other Chartered Accountants. In respect of these blocks, Standalone Financial Statements include proportionate share in assets and liabilities as on March 31, 2025 amounting to Rs. 60,478.66 million and Rs. 32,739.86 million respectively and revenue and profit/(loss) including other comprehensive Income for the year ended March 31, 2025 amounting to Rs. 58,483.74 million and 13,270.84 million respectively. Our opinion is based on audit reports of the other Chartered Accountants. b. 18 blocks have been certified by the management. In respect of these blocks, Standalone Financial Statements include proportionate share in assets and liabilities as on March 31, 2025 amounting to Rs. 8,734.20 million and Rs. 8,058.94 million respectively and revenue and profit/(loss) including other comprehensive Income for the year ended March 31, 2025 amounting to 48.39 million and Rs. (828.57) million respectively. Our opinion is based on management certified accounts in respect of these blocks.

Our opinion on the Standalone Financial Statements is not modified in respect of the above 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 Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility and Sustainability Report, Corporate Governance, but does not include the Standalone Financial Statements, Consolidated

Financial Statements and our auditors reports 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 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 circumstance and the applicable laws and regulations.

7. Responsibility of the 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 respect to the preparation 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 Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 the 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, management 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 responsible for overseeing the Companys financial reporting process.

8. Auditors Responsibilities for the Audit of the 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 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 financial controls 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 system 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.

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 i. 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 the "Annexure –1", a statement on the matters specified in the paragraph 3 and 4 of the order, to the extent possible. ii. 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:

Sr. No.	Directions u/s 143(5) of the Act for year 2024-25	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 system? 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 loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for? (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 2024-25. 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 2024-25 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 Government of its agencies were properly accounted for/ utilized as per its terms and conditions? 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 Government of its agencies were properly accounted for/ utilized as per its terms and conditions.

iii. 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 accounts 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, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of accounts. 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 the company is a Government Company, in terms of notification no. G.S.R. 463(E) dated 5th June 2015, issued by the Ministry of Corporate Affairs, the sub-section (2) of section 164 of the Act is not applicable to the company. f. With respect to the adequacy of 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". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial control over financial reporting. g. As the company is a Government Company, in terms of notification no. G.S.R. 463(E) dated 5th June 2015, issued by the Ministry of Corporate Affairs, the sub-section (16) of section 197 of the Act is not applicable to the company. 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, as amended, 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 on its financial position in its standalone financial statements - Refer Note 49 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 53.4 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, except in the following cases:

Financial Year of declaration of dividend	Type of dividend	Date of declaration	Due date of transfer to IEPF account	Date of transfer to IEPF Account	Delay in days	Rs. in Million
2016-17	Interim	October 27, 2016	January 3, 2024	May 22, 2024	140	18.40
2016-17	Interim	January 31, 2017	April 8, 2024	May 24, 2024	46	15.06

iv. (a) The management has represented that, to the best of its knowledge and belief, other than as disclosed in Note No. 53.3 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 entity, including foreign entity ("Intermediaries"), which 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. 53.3 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 entity, including foreign entity ("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 in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable. (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. 21.5 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, as applicable. vi. Based on our examination which included test checks, the company has used an accounting software for maintaining its books of accounts which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with. The audit trail has been preserved by the company as per the statutory requirements for record retention.

Annexure 1

To the Independent Auditors Report on the Standalone Financial Statements of Oil and Natural Gas Corporation Limited for the year ended on March 31, 2025

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

To the best of our information and according to the explanations provided to us by the Company and the books of accounts and records examined by us in the normal course of audit, we state that :(i) (a) A. The Company has generally maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

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

(b) The Property, Plant and Equipment (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) 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) 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) There are no proceedings initiated during the year or are pending against the Company as at March 31, 2025 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, inventory of gas and material in transit) has been physically verified by the management at reasonable intervals. In respect of inventory of stores and spares, physical verification is carried out by the management in a phased manner at reasonable intervals to cover all the items over a period of three years. 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) The Company has not been sanctioned working capital limits in excess of Rs. 5 crore, in aggregate, at any points of time during the year, from banks or financial institutions on the basis of security of current assets and hence reporting under clause 3(ii)(b) of the Order is not applicable.

(iii) During the year, the Company has not granted any loan or advances in the nature of loan or provided any security to any party. The company has made investments in and provided guarantee to Companies during the year, in respect of which: a) 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:

(Rs. in Million s)

		Guarantees
Sr. No.	Particulars	Aggregate amount provided during the year	Balance outstanding as at 31.03.2025
1.	Subsidiaries	2,58,697.56	4,34,970.35
2.	Joint Ventures	1,120.00	2,240.00
3.	Associates	-	-

(B) The Company has not provided 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. 100 million to Hindustan Antibiotics Limited in the past, the outstanding book balance as on March 31, 2025 stands at Rs. 193.37 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) 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. 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. 100 million granted to Hindustan Antibiotics Limited in the past, the outstanding overdue book balance as on March 31, 2025 for more than ninety days stands at Rs. 193.37 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) 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) 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) 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. The Company has complied with the provisions of section 186 of the Companies Act, 2013 in respect of investments made and guarantees provided.

(v) 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) The undisputed statutory dues including 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 and any other statutory dues have generally been regularly deposited by the company with the appropriate authorities. No undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2025 for a period more than six months from the date of becoming payable. (b) 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) There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

(b) The company has not been declared wilful defaulter by any bank or financial institution or other lender.

(c) The Company has not taken any term loan during the year and therefore, reporting under clause 3(ix)(c) of the Order is not applicable.

(d) No funds raised on short-term basis have been used for long-term purposes by the Company.

(e) 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) 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 any 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) 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) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year. (b) No report under sub-section (12) of section 143 of the Act has been filed in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government of India, during the year and up to the date of this report.

(c) As represented to us by the Management, there are no whistle-blower complaints received by the Company during the year.

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

(xiii) 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 in-house internal audit department, which is commensurate with the size and nature of its business. In our opinion, the audit process needs to be improved in the area of 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) 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) 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) 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) 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) 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) There are no unspent amounts towards Corporate Social Responsibility (CSR) on other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the Act in compliance with second proviso to sub-section (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 previous financial year, to a Special account within a period of 30 days from the end of the said financial year in compliance with the provision of section 135(6) of the Act.

ANNEXURE - 2

To the independent auditors report on the Standalone Financial Statements of Oil and Natural Gas Corporation Limited for the year ended on March 31, 2025

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

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, 2025 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility 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 ICAI. 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 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 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 over Financial Reporting

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 unauthorized 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 over Financial Reporting

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, 2025, 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.

(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	3,789.70	-	3,789.70
	Total(A)		3,789.70	-	3,789.70
Central Excise Act, 1944	Commissioner	2016-17; 2024-25	286.32	-	286.32
	Custom, Excise and Service Tax Appellate Tribunal	2016-17; 2018-19	120.58	30.40	90.18
	Hon. High Court	2012-13 to 2014-15	8,067.66	-	8,067.66
	Hon. Supreme Court	2001-02; 2006-07 to 2008-09	518.54	-	518.54
	Total(B)		8,993.10	30.40	8,962.70
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(C)		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	2002-03 to 200708; 2012-13 to 2021-22	260,676.29	260,676.29	-
	Income Tax Appellate Tribunal	2007-08; 2009-10 to 2011-12;	120,382.59	120,382.59	-
	Hon. High Court	1990-91	411.92	411.92	-
	Total(E)		381,470.79	381,470.79	-
Goods and Services Tax	Departmental Forum/ Adjudicating Authority	2017-18 to 2024-25	37,651.78	35,638.19	2,013.59
	First Appellate Authority/ Commissioner Appeals/ Additional Commissioner	2017-18; 2019-20; 2022-23; 2023-24	26,495.69	26,030.67	465.01
	Tribunal/CESTAT	2017-18 to 2022-23	92,288.73	90,270.33	2,018.40
	High Court	2017-18 to 2022-23	32,764.58	-	32,764.58
	Total(F)		189,294.45	151,939.20	37,355.25
State Municipal Tax	First Appellate Authority	1998-99; 19992000; 2017-18	182.71	-	182.71
	Hon. High Court	2000-01; 2004-05; 2006-07	19.79	4.30	15.49
	Total(G)		202.50	4.30	198.20
Royalty	Department of Geology	1992-93; 1996-97; 2004-05	496.40	-	496.40
	Directorate General of Hydrocarbons (DGH)	2022-23	4,418.74	-	4,418.74
	Total(H)		4,915.14	-	4,915.14
Central Sales Tax Act 1956 and Respective States Sales Tax Acts	Commissioner/ Joint Commissioner/ Commissioner -Appeals/ Joint Commissioner- Appeals	2005-06; 2009-10; 2016-17; 2017-18; 2024-25	696.59	-	696.59
	Appellate Tribunal/ First Appellate Authority	2001-02; 2002-03; 2005-06; 2009-10 to 2015-16; 2018-19	17,435.34	25.50	17,409.84
	Hon. High Court	2006-07; 2012-13	11.16	7.40	3.76
	Hon. Supreme Court	2002-03 to 200809; 2012-13; 2016-17	11,607.75	623.96	10,983.79
	Total (I)		29,750.84	656.86	29,093.93
Agriculture Land Tax	First Appellate Authority	2017-18	2.93	1.57	1.36
	Hon. High Court	1995-96; 1998-99; 2005-06; 2009-10; 2018-19; 2020-21	15,782.03	-	15,782.03
	Total(J)		15,784.96	1.57	15,783.39
Finance Act, 1994 (Service Tax)	Commissioner/ (Appeals), Joint Comm., Joint Comm. (Appeals), Additional Comm. of Custom, Assessing Officer, Excise and Service Tax, Director General	2006-07; 2007-08; 2011-12 to 2017-18	14,519.73	0.67	14,519.06
	Custom, Excise and Service Tax Appellate Tribunal/ First Appellate Authority	2005-06 to 2008- 09;2010-11 to 2012-13; 2014-15 to 2017-18	38,168.71	10,363.39	27,805.32
	Hon. High Court	2012-13; 2015-16;	6,540.99	2,870.82	3,670.17
	Total(K)		59,229.43	13,234.88	45,994.55
Oil Industry Development (OID) Cess	Custom, Excise and Service Tax Appellate Tribunal	2024-25	2,875.85	-	2,875.85
	Commissioner	2024-25	69.50	-	69.50
	Total(L)		2,945.35	-	2,945.35
Grand Total (A+B+C+D+E+F+G+H+I+J+K+L)			696,562.53	547,388.76	149,173.77

 

For J Gupta & Co. LLP	For Manubhai & Shah LLP	For V Sankar Aiyar & Co.
Chartered Accountants	Chartered Accountants	Chartered Accountants
Firm Reg. No. 314010E/E300029	Firm Reg. No: 106041W/W100136	Firm Reg. No. 109208W
Sd/-	Sd/-	Sd/-
(CA Nancy Gupta)	(CA K. B. Solanki)	(CA Asha Patel)
Partner (M. No. 067953)	Partner (M. No. 110299)	Partner (M. No. 166048)
UDIN: 25067953BMOZNG1169	UDIN: 25110299BMJOVH3067	UDIN: 25166048BMKNOL5252
For Laxmi Tripti & Associates	For Talati & Talati LLP
Chartered Accountants	Chartered Accountants
Firm Reg. No. 009189C	Firm Reg. No. 110758W/W100377
Sd/-	Sd/-
(CA Rajesh Kumar Gupta)	(CA Amit Shah)
Partner (M. No. 077204)	Partner (M. No. 122131)
UDIN: 25077204BMLMFG3954	UDIN: 25122131BMOZNN4743
Place: New Delhi
Date : May 21, 2025