IGHEST DIVIDEND — PAVING COMPANY ya F COUN ae BUSH Li Pyiny rab et eto! PO UU BCLs Ma te Td Be et ue ee arte tat d have resutted In discovery of all six producing Basins; the 7th Basin was discovered In pre-ONGC era. The Warld's Number 2 Exploration Se ee or ‘Corporate govemance which is the key driverofeustainable corporate Reus ue aL OR mag Cou ue uo a LL Indian energy major to be In ‘Fortune's Most Admired List 2012" A Ma me el Dm Un RU tt oe Mn energy multinational, managing 30 properties worth US$ 12 billion pty Ts Be oO eer me) ee Oe Ce me elie Cy management to deliver enduring value, there Is sustainable wealth to Pe RUE iChairman's Message Dear Shareholder, ‘As you are aware, your Company, ONGC, has reinforced Its position as one of the most valuable Indian ‘companies through a balanced mix of consistent upstream sector growth and value-integration projects in refining, power end petrochemicals. In addition to robust business growth end opsratonal excellence, your Company has alsa substantially enhanced Its social Investment through focused CSR ectiites, sustainablity engagement through Carbon Managernent initiatives, unetinted investment in Health, Safety ‘and Envimnmant, sports promoson and employes watiara measures. Such ‘all_inclusive' structural maturity Istangeted at dellvering exceptional value to our esteemed shareholders overthe long tem, During the yea, wo made 2 ol and gas disoovores in domentic olds, adding 242.80 MTOE of intial Ir place brydrecerbon. This translates info 84 1 MTDE of Ulmale Reserves (85.44 MATOE inchding our share in ont ventures), which is the highest in last twa decades. Our Reserve Replacement Ratio of 1.78 marks the Tih consecutive fiscal thatithas excaaded 1; establishing thestrangih and sustainability of ourburinass model, ‘The total production of ONGC Group in FY-12 (ineuding OVL and ONGC's share in Production Shating Coniracts-JVs) has been 61.18 MTGE. This has inched down from the alltime high FY-11 figure of 62.05 MITOE, mainly on eocount of iower last-quarter oversees production rem geo-polificlly affected Suden, ‘South Sudan and Syrtan fields. The four assets In these affected countries comprise around one-third of ONGC's overseas production volume, Despite continuing global economic distress, we delivered yet another stellar nanclal performance In FY-12 by registering the highaet-aver Gross Revenue of © 788.87 billion (up 12 par cant from FY-11). It also posted the highast-aver ProfitAfier-Tax of & 251.23 billon (up 22.8 per cant), This enabled us to pay-out the highost ever dividend of 83.42 bilion (195 percent). Ovor tho past five fiscal, wa have pald over® 368.75 billion in dividend to our valued sheroholdars, axcluding dividend tax. Tha average dividend pay-cut rai is again an industry-Jeacing 40 per cent, in addition, we delivered the highest-sver EPS (Eemings Per Share) cf %29.36 jalmost six times the face valuecf® 5] and invastor-cheering 51 4 percent ROCE. ‘This was facilitated principally by strong cash- flow generation model that enables your Company sharing eemings generously with valued shareholders In addition to providing adequate flecal comfort to pursue attractive business opportunities. We invested a record 4205.52 bilion in caplial expenditures during X| five-year Plan period. Thanics to support from the Indian Goverment, OVL now manages 30 hydrocarbon properties in 15 countries with a cumulative investment of around USD 15 bilion, Despite ntienuiaind production fromSyrian and Sudan assets, OVL achieved the highest-ever revenue of 228.37 billion during FY-12. This translates to 24.2 per cant growthover FY-11 revenue oft 186.74 billion, Its @ global phenomenon that mature oll and gas assais enter a natural declining production phasa on account of their vintage. Our major producing fisids too are similsrly affected, but we have been prosctive in ‘arresting this daciing through Improved 8 Recovery (IOR) and Enhancad Ol Recovery (EOR} projects, ‘These efforts will become more intensive through further technology interventions and we expect rich dividenda to accrue aver thaltife of thaaa producing assets. With significant sucess In new expionaion plays, ONGC has aecumulated a large inventory of oll and ges finds with substantial development opportunities. The frontier areas and new plays entall significant Invesimenttin high-end technology and a concomitant increase in production casts, ONGC is continuously pursuing a framework of opportunities for thelr economic development and cost-effective monstzation, within the net five years. ‘As lange tracts of Indian Sedimentary Basins remain to be intensively explored, thers are significant opportunities to discaver and develop these un-explored or partly-cxplored areas. Around four lakh square Wiorneters of theee areas are expected lo be offered for exploration In the next 5 yoars and ONGC Is well- positioned to participate aggressively in auch future bidding rounds after careful aagasament of risk-neward Profiles of such unexplored territories. Governmant of india divested 420,416,170 equity shares (4.91 par cant) of ONGC on 1 March, 2012 through Stock Exchanges using the “Offer for Sale"(OFS) Mechaniem. With this, the Government holding of ONGC has coma down fram 74.14 to 89.23 por cont and publeholding has gono up by tha same percantago ‘enhancing our accountability to increased number of shareholders. To sustain growth in the emerging business parecigm, your Company hes chalked oul en ambitious ‘Perspective Pian 20307, mapping the long-tarm growth model of ONGC ga an energy major. Under this Pisn, \we Intend to double our production by 2030; with nearly 46 per cant conbibutlon expected to come from oversess. assets. We also have plans to strengthen our downstream linkages in refinery, LNG, petrochemicals and other emerging areas of opportunities. We are also aggressively looking for ‘opportunities In unconventional energy sources and alternate sources of energy Including nuclear. ‘Your Company implements best-in-class govemance practices through @ robust corporate governance structure due towhich Transparency Intemational has evaluated ONGC as the most Transparent companyfrom India a6 per their recant report on 105 largest listad global companies. Your Company is a pioneerin adopting Sustainability Development as @ mainstream sctivity end is isauing its third "Corporate ‘Sustainability Report under GRI - G3 reparting standarda this year, We have also made signticant strides in engaging our cparational communities through our sinaciured Carporaie Social Responsibility (CSR) programmes. ‘Your Company conthues to feature among top-ranked global performers and isthe only Indian energy giant tohave featured In Fortune's Most Admired List 2012 under ‘Mining, Crude OW Producon’ catagory. Its also ranked the Number two Exploration & Production Company in Plats Top 250 Global Energy Company Rarhing 2011 and 17's In Forbes Global 2000 list 2012 ofthe worlds biggest companies among soveral cole recognitions. ‘Your continued support and confidence in cur capabiity to deliver results as por your expectations motivats sto constantly refine our operational models, induct best-in-class technology and davise newbusiness and ‘managamant templates ta deliver stellar performance Yaaron Yaar, We derive strength fem your faith and boi in us an ws plage to constanily mee! with and aver exeed yourexpectalions. Stay Invested. lon Be ‘Sudhir Vasudeva Chaiman & Managing Director. IN Yigg a ltr me oun te ment "en anst ot WELL, BASIN GA \ UNE 1 oath JULY, 1988 VISION To be the global leader in integrated energy business through sustainable growth, knowledge excellence and exemplary governance practices.MISSION WorldClass, + Dedicated to excellence by leveraging competitive advantagesin R&Dand technology with Involvedpeople, + Imbibehigh standards of business athicsand organizational ‘values, + Abiding commitment to safety, hesith and environment to ‘enrich quality of community life, + Fostera culture of trust, openness and mutual concern to maka working a stimulating and challenging experiance for ‘ourpeople. » Strive for customer delight through quality products and services. Integrated InEnergyBusiness + Focus on domesticand international il and gas exploration and production business opportunities. + Provide valualinkagesin other sectors of energy business, + Create growth opportunities and maximize shareholdervahoe, DomInant indian Leadership + Retain dominant position in Indian petroleum sector and enhance India's energy availability.STATEMENT PURSUANT TO SECTION 212 202 CP ARO. Soe} AUDITORS' REPORT - ONGC GROUP 210 CONSOLIDATED FINANCIAL STATEMENT OF ONGC GROUP 214eS Operational Highlights FY'12 =f £1 fi £1 £1 1S oes NM (a mea me ee mewnSudhir Venwieva BlmalJlke 8K. Bart UN. Bose OPBNIL — Syahemn Nath AK BaerBrief Profiles of the Board of Directors savor 13" August, 2002 Functlonal Directors Sha Sudhir Vesudere a fe Chainnan & Managing Ditactoe of tho most \alunbla Maharnina PSL of india, CH And Natural Gaa Corporation Li (ONGC). Sil Voudowe, x Gold Medelet Chemical Enghor ram Nationa Insite Techrciogy Ralpar ha cwerthren and half decades of experience Inthe andre parte upaiream of and ges ures, Hii ne corporat acer ety ans ned ONGC Bound ws Decor (Qtahorn) in February, 2008 and fay tock Crar ws CMD in cba, 2011. Faatipen Pec MenapemelinDocarbe 2 Shot Vasudeva Ia slo he Chairnan of ONGC Videsh Linbed (OVL). Mangdiore Refhery & Petrochenioals Lid (MPL) and ths other CNGC: Group of Companis (OF, MPL, MBEZ,OTPC ind OMEL), Aerated tncmocrat Ste Vaan te Chairman of Pemitach Society, Charparaan of SPE indian Comal ms wall 3 w Divactor A-Mpe in SPE Intemational Board ot Declan, the frat for ary Indian, lagu ummainnane istablaaeasen Asirang proposent of pursing atrass and ranowebie sourcas cf nergy, Stat Vaud is Chutrg the ONCE Enaepy Cert Trt. A fir hollverin ranaparency eed ethic! business pracicas, Sl Venuave. ebmcaditha Tes Prinepfesaf Untied Nata Giotel Compact sire ths bogining ttt nts fini. owe i ao the Prewitt Gra Compact Netw Iii In APE, 2012, eesti Genera of Unis ura api Mr Vico ah a Mabor in tha Beart athe United Nation Gata Corp Ha ath ft Busines Lander forindan PSUstoherstis aehonour, Everton, empacaly promng industria, fx ona of tw clone! maar fe the haart of She ‘udev. Thy Progknt of ls elocted ti as he Chlrperson ofthe Bowd of Goversrs of NT. Rous, he alma rae, Shy Vauudeva Ie also Space Invtae the Beard ef Govemors of Pandit Dsandayal Patclsum University. An ertustartie supporter of Indian sperts, Bhel Vasudeva encoueged ONGC fo borne the Priel Spoon of rebar contngontand is als tha PresidontofAl india Pub Sector Sperts Promotion Board. ‘bri AK Hazara tha Dect (Onshore) of your Corpary. He alan held ackiborel charge of CMD, ONGG from Tot February, 2011 fi 2d October, aot eee pan ere einen ng Colege, Gowahat. Hues approstrraty 35 year of erichad ad ws Soni toverd fleld and staff asslgnmonts In veri dictptaea Inedicing Regenal Camentng inchargs, Head # Chia! Will Manegument Group (CMG) of ONGC purauhy diereat COM projects through educon of GHG ariesions.‘Shui UH, Does bs the Dimcoe (Technology 4 Fld Sarvcas) of your CCompary, Ha tits a Bachslor's dsqres in Mechanical Enginser rents Unset Negpur: He has mora ssn 38 yee ol experance I veri fields Including deviator/hacteantal tiling. implemented diiling Progrimines Nigh presaurehigh Yompersute conditina and provided Scr ahr phn a ee oy pata et ep water dling campalgn in dap ard ubreceen areas, ‘echnical papavsnd devetoad 1reniatigiettorergeprdom: ‘Shel 8, W.Rso a bs Dirck Exp) of your Company. Ho bride a [Basted degen n Senos and a Maire Doren h Apne Geology kom (Bs Unbeay of Bombay: Hs hes oppmadimatnty 38 year of exparioncs nthe, ‘Shel KB, Jamevdn ls the Dieckr (HR) of your Company, He bids a. Blechelo‘s degren lector and Telenoranunicationa Engineer tom Usheomy of ari, MEA in Fc, Diploma is Opanione: Managemart Dreesar HR} of ONGCNe arvas x Cree HRD whoa reengineand and eerenbed aT HER proceed in ONGC, Hielied als ferwnd da Hed Pagina ‘five, Murnbai and as Project leader for Proect ICE, ONGCa award winning SAP-ERP imelsmentton Projct, mld an ono ct the tiggeat ard riot vucropstd SAP irolreeiciora inthe vert ‘Shit lola Kumar Barn je b the Ditector (Finance) of aur Company: He (roca Matern degres ls Commarca rom Univerlly of Osis. Ha is 2 Folin ribo ofthe eae Of Chari Anca of Ii, soe mambar of the laxtiuia of Company Sacrutwies of India ard Associate ‘mamber of Farthute of Coat & Works Accountant of Inia. He hag 3Dysara ct Feros] Planing, Proaiement Canta, Boschi 4 Bahan, Aud Gono Gavongncn nmuenay oe. bat Introduced & Iplamaniod Financtsl Berctrearking Concept and Zar-bem [Budgethg In ONGC. Pict to Recontng Dibeotet (Frason) he served at (ED-Chief Corporsia Financ nONGE, (feGovemment Nominees: Sh Binal Juha, ASI Seertity & Dxeolot Gener Curran, Deparment of Econoric Afitrs, Goverment ci! indo, joled the ONGC Board ax & Governmert Norns Director en 4 Agl2012. He hole a Master's degres In ‘tom Dab Ho was acrid felowatip at the Cusen House, Chord and wrcia 6 teats on Sima and Meu (SER) Beloeging i (O7Obatch of 1A, ha was Dito, of nduestal Development, of ones & ty e120) Pls Sona Jo Me i Hugee Renate Delon Bm Dc Mey oh Pao (1996-98); Commeiasionar, Guntior Divi (20CO:A005); Joint Soorotary, Nini of Deter (2000-2000); ane Reade Gomrisaione, Goverment of Madhya Pradesh (2008-200), Str A, Oiridhar, Joint Secretary (Exploration), Milety of Petrokoum & Natural Qo, Gort of leds, oined the ONGC Board ax a Goverment Hemlnes Directo on 3rd Auguet, 2012. He hokie a Bachwl's degre In ia long ena edi cog bet trac Econmiee, Behring to 1898 batch of IAS {AP Cadre) he wae Sud ( DMslonal Magia, Gaia! (1990-82), Project Gee, Imagried Tribal Goatenpet (1902-04), Additonal istic Maghetrae A Diet Developer Ofc, Nizamabad (1904-96), Anse Citi Marista, Nello 1963-26), Adeicnal istrict Macirbate, Kadiapal295- ‘uanan (1868 2502}, Traport Camiaaioner, aera Preah a a Pradesh, France Deptit2004-07), Mistry Dhodac KP Ste Fanci Corman (2078), Emroitve Director, surance Raguleory ard OavelopmantAuthory, Hyderabad (200842). Independent Directors " Dr. D. Chandrasekaran, an Independant Olrecior of your Campary, Jolnedtha ONGC Boer on 11" Merch, 2011. Ha holds 2 Bacholors degre: Bombay, Mumbai. He naa served ax a Bacior Scientia tha Cann tor Emth Science Staten, Tvandrum and werved as & Senior Scania at tre Cntr for Water Rsouress Dovelopmanl, Korala. Ho ig alse curently & ‘arbor ofthe inferuntona Gectha ral Associaton (serving Ins Board of Dirwctrs), the Gaotherrn! Roscuress Counal, USA, the Cunt Scioncs Assoniaton, Inia and ths letarratdanal Ansociation forHyirogentogists. Or Chandreshaldhoram has over2fiyax of axparanca bs Patrebtorass basic intn Wowpotce sat of wet Convery ped We essa Noe Yt Pricer Het ws Vis Gs e ha ae ef Dll fom 2000 ta 2005. He miso aerved an CMa! Esonamie Adviser tothe ‘Goverment of nein und Gecretary ine Mrisby of Finance. Aaa Fevodes Setter, a went eno Udy ‘Balin Cologe, University Cader. Ha haa receivedthe VICRLV, io Award fois corisbution ta rsaarch In Econo. Rowse Co Fs Uae Stains, and Chaimen of tw Advienry Cour! forthe Departnont of Inematonal Developmen, Queen Elia House, Uriveraty of Oxford, He alsa wonved mea rebar of the National Knowledge Commission in lia and Vion Prosident of tha inomatonal Assocation of (Unhaunon, Pas, ‘Shel Arun Ramenathen, an Indopendert Director of your Compony, ed the ‘ONGC Boandon 20" June, 2011, Hahokis « Mnais¢a degra in Nuclar Prysicn ‘Business Adrnhisinifon ard! Devalepmant Econarice. Hein alsa an Auwocishs [Momsr oft nar of Cast ard Werks Aocounars co Ire. Ha joiner! oa AS In duly 4873 whoo to hold savers saegemont in hidusiry, Frame, Food, Sebi ore penne anemones el ep a Secatuy A Peirochemicsia), Secretary (Fi ‘aly fa Unb Phance Secor. Si Ramansthan was ba France Secretary athe Ure af to lode hance cna ood wes neminsed by te Prine Minter io Ghat the Graup of ‘Secrotras w commandments neaded counter th nebtnin tetendl ard induces, Prot Barer Kura Barus, an incaparcerd ctr of yeu Shoat rif en [wlan ope Enginaarty mn’ Cpaeriore Rasaarch Decmeta dagen In Netarlansa, Stapapore, stucen Marpac Hain. conan © many puke an peat rpaiztions nthe nanuisctrng ‘binhing, ard feat serviews gecko’, He haa hare’ various enoegtmonts wa evisor to Rare Banik of Sadia, FICCHand the Borbay and Nahonal SinckExchanqom. \Sbel Orn Praicah Bhs, ar Independant Drector of your Company, plead fh ‘ONGC Bourdon {4*Deacernbar 2041, Ha arsd Hs caresrns a prbatienary oficar veh SBI in 4872. Dug bia career span cf 38 yoart veh 66, tn ham bald save |rnportnteasonmerta Ind and abroad cud ata atthe Bark’ Lends ad ‘efcas, Under fe hsecerahip of Str! Bhat, SE ataaity Improved hs sti rk le Bet Fst 60 compare. Sl tht a ain a ert fag mart are, pit branch exparaion wttnthabanepanig 1,000 ‘bunch under the frat den bark an onthe eacon athe ward to doo, and ‘eiertqunumber new busheseen. =