1.1INTRODUCTION

HISTORICAL BACK GROUND OF OIL IN INDIA

Pre Independence 1866 – 1947

The exploration of hydrocarbon in India commenced in 1866 when Mr.Goodenough of McKillop Stewart Co.drilled a well near Jaypore in Upper Assam and struck oil. Mr.Goodenough, however, failed to establish satisfactory production. By 1882 the Assam Railway and Trading Company (ARTC), a company registered in London in 1881, with an objective to explore the rich natural resources of Upper Assam, acquired rights for exploration over about 30 sq miles in the same area. Sub-surface oil exploration activities started in the dense jungles of Assam in North-East India.

The first commercial discovery of crude oil in the country was, however, made in 1889 at Digboi. In 1893, rights were granted to the Assam Oil Syndicate. which erected a small refinery at Margharita to refine the oil produced at Margharita. A new company known as Assam Oil Company (AOC) was formed in 1899 with a capital of £ 310,000 headquartered at Digboi to take over the petroleum interests, including the Makum and Digboi concessions and the rights from Assam Oil Syndicate. A 500 BPD refinery was set up in Digboi in 1901, supplanting the earlier refinery at Margharita.

In 1921, UK based Burmah Oil Company (BOC) which had a successful oil exploration record in Burma, bought all the shares from ARTC and was appointed commercial and technical managers of AOC. By 1931, crude oil production has gone up to about 250,000 tonnes per annum and exploration activities were spread all over the Assam-Arakan region. Meanwhile another field was discovered at Badarpur in the Surma valley and because the discovering party lacked the capabilities to exploit the find, BOC provided technical knowhow, financial backing and managerial support.

1947 – 1960

After independence, the Government of India (GoI) realized the importance of oil and gas for rapid industrial development and its strategic role in defence. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was given top priority.

While BOC and AOC continued development of Digboi oil field and intensified exploration activities in the North-East region, the Indo-Stanvac Petroleum project (a joint venture between GoI and Standard Vacuum Oil Company of USA) was engaged in exploration work in West Bengal. In the year 1953, the first oil discovery of independent India was made at Nahorkatiya near Digboi and then in Moran in 1956.

In 1955, GoI decided to develop the oil and natural gas resources in the various regions of the country as a part of development of the Public Sector. With this objective, an Oil and Natural Gas Directorate (ONGD) was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological Survey of India (GSI).

In April 1956, the GoI adopted the Industrial Policy Resolution, whichplaced mineral oil industry among the schedule 'A' industries, the future development of which was to be the sole and exclusive responsibility of the state.

Soon, after the formation of ONGD, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government.

ONGC started its systematic geoscientific surveys in areas considered prospective on the basis of global analogies. A thrust in exploration was concentrated during the early years in the Himalayan Foothills and adjoining Ganga plains, in the alluvial tracts of Gujarat, Upper Assam and Bengal Basin. Exploratory drilling was initiated in the Himalayan Foothills in 1957 with Drilling of the first well Jawalmukhi-1 in Himachal Pradesh. The year also saw drilling activities being taken up for the first time in Cambay Basin which ultimately resulted in the discovery of oil and gas in 1958.

Mean while, Oil India Private Ltd. Was incorporated on February 18, 1959 for the purpose of development and production of the discovered prospects of Nahorkatiya and Moran and to increase the pace of exploration in the North-East India. It was registered as a Rupee Company in which AOC/BOC owned two-thirds of the shares and the GoI, one-third.

In October 1959, ONGC was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further. The main functions of ONGC subject to the provisions of the Act, were "to plan, promote, organize and implement programmes for development of Petroleum Resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as the Central Government may, from time to time, assign to it "

1961 – 1991

1 On July 27th 1961, the Government of India and BOC transformed OIL into a Joint Venture Company (JVC) with equal partnership ONGC's Geo-scientific surveys and exploratory drilling activities were also spread out to U.P. (1962), Bihar (1963), Tamil Nadu (1964), Rajasthan (1964), J&K (1970), Kutch (1972) and Andhra Pradesh (1978). In spite oflimited success in these areas, ONGC pursued its exploratory efforts and was successful in indentifying hydrocarbons in Cauvery basin and Krishna Godavari basins in the mid 1980s.

Offshore exploration was initiated in 1962 through experimental seismi surveys in the Gulf of Cambay. Detailed seismic surveys carried out in the western offshore in 1972-73 resulted in the identification of a large structure in Bombay Offshore which was taken up for drilling in 1974 leading to India's biggest commercial discovery, thereby establishing a new hydrocarbon province. Encouraged by the success at Bombay Offshore, exploratory efforts were expended systematically in the entire Western Offshore including Kerala-Konkan basin and Eastern Offshore areas leading again to large discoveries in the Western Offshore (Bassein and Neelam) and substantial accumulations in the Eastern Offshore (Ravva, PY-3 etc.).

ONGC went offshore in the early 1970s and discovered a giant oil field in the form of Bombay High, now known as Mumbai High. This discovery, along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. Subsequently, over 5 billion tonnes of hydrocarbons were discovered. The most important contribution of ONGC, however, is its self-reliance and development of core competence in E&P activities at a globally competitive level.

ONGC Videsh Limited (OVL) was formed with a view to undertake theOverseas exploration and production activities on behalf of ONGC.

On October 14th, 1981, OIL became a wholly-owned GoI enterprise by taking over BOC's 50 percent equity and the management of Digboi oilfields changed hands from the erstwhile AOC to OIL. For the time PELs outside the North-East, were granted to OIL in Offshore Orissa (Mahanadi) in 1978, in Mahanadi Onshore (1981), North-East Coast Offshore (1983), Rajasthan (1983), Saurastra Offshore (1989) and Ganga Valley areas in UP in 1990.

After 1991

The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. Following this, ONGC was re organized in February 1994 as a limited company under the Companies Act.

Post liberalisation, several committees were set up to examine various proposals for restructuring and devising strategies to meet the challenge of the new economic environment. Among the most prominent reports was the Sundarajan Committee Report in February 1995 which favoured deregulation of the petroleum industry at one stroke. However, the Strategic Planning Group on Restructuring of the Indian Oil Industry, the 'R' Group, headed by the then Petroleum Secretary, Dr. Vijay Kelkar, felt the switchover should be in a phased manner.

Commercial hydrocarbon discoveries were reported by OIL during 1990-91 in Assam and Rajasthan. During 1993-94 ONGC's production from western offshore reached a low of 15.37 MMT, prompting ONGC to enter into Joint Ventures for developing Ravva, Mid & South Tapti, Mukta and Panna fields.

The JV initiative was fruitful inasmuch as it increased the production from these declining fields by 5 MMT in 1994-95. during the same period 5 important discoveries were made in the Bombay, Krishna-Godavari and Cauvery basins.

A committee was constituted in 1992 under the chairmanship of P.K. Kaul, former Cabinet Secretary, to examine the need for restructuring of ONGC. This Committee recommended setting up of a body, with the name and style of the Director General of Hydrocarbons (DGH), for discharging the regulatory functions of leasing and licensing, safety and environment as also development, conservation and reservoir management of Hydrocarbon resources. Accordingly, DGH was set up by a Government Resolution in April, 1993 through which certain advisory regulatory roles were entrusted but no development role was assigned. 76 Paper on “Review of E&P Licensing Policy” Petro Fed

OIL also went overseas and acquired a 20 percent participating interest in the production sharing contract for the Block 4 in Oman through a farm-in agreement with TOTAL-FINA of France. It also involved in the exploration service contract for the Farsi block in Iran along with OVL and Indian Oil Corporation Limited.

In 1997 the GoI, in order to accelerate pace of exploration efforts in the country, approved the New Exploration Licensing Policy (NELP) by providing a number of attractive fiscal and contractual terms. Till now, four rounds of NELP have been concluded while the 5th round is underway with the award for 18 of the 20 blocks on offer being announced in July 2005. The PSC for the blocks are expected to be signed in October 2005.

History of Essar oil

1989 Essar Oil Limited was incorporated as a Public Limited Company under the Companies Act, 1956 on 12th September, with the main objective to provide Development, Exploration, Production and related Services in the oil & gas sector. The main promoters of Essar Oil Limited are Essar Investments Limited, Essar Shipping Limited, South India Shipping Company Limited, Essar Gujarat Limited and a foreign co-promoter, Prime Finance Company Limited, and other NRI's associates and friends. EOL was engaged in preliminary activities relating to bidding for oil & gas fields as well as advising the Energy and Offshore divisions of Essar Gujarat Limited on technical matters relating to their operations. The Company is a member of Essar group. 1990 The Exploration and Production Division was set up for the purpose of Oil & Gas exploration activities. 1992 The company became a wholly owned subsidiary of Essar Gujarat Limited (hereinafter referred to as `EGL') in March. The Company has obtained `No objection certificate from Gujarat Polution Company Board vide letter N. PC/jmn - 105/02484 dated 19th November The Chennai Investments (India) Limited, is a subsidiary of EOL. The Company is presently divided into three main divisions comprising of Energy, Offshore and Exploration & Production divisions and is in the process of setting up a new Refinery division. The Company has India's largest private sector fleet of drilling rigs. The Energy Division has drilled the deepest well in Asia to the depth of 6700 Mtrs. In Himachal Pradesh. EOL proposes to enter into an MOU for operation and maintenance services for the Refinery with an affiliate company, Essar Refineries Limited which in turn will enter into a tie-up with an international refining company providing technical

back-up services and key personnel required for successful operation and maintenance of the Refinery. 1993 EOL is the first drilling Company in India to secure international drilling contracts against international competitive bidding. The Energy Division obtained the President's award for safety in onshore operations and a Silver award for safety (accident prevention) in Offshore operations, based on its performance in 1992, from the International Association of Drilling Contractors which is an association of leading international drilling contractors. EOL has signed a Memorandum of Understanding with UOP Inter Americana, USA (UOP), for providing major process technologies. 1994 In June, the Board of Essar Gujarat Limited proposed to transfer the entire shareholding of Essar Oil Limited to Essar Investments Limited (hereinafter referred to as `EIL') for various business and strategic reasons. EOL proposes to import crude oil by Tankers and VLCCs of capacities 240,000 - 300,000 DWT. EOL shall develop dedicated marine and shore facilities at Vadinar port for receipt of crude oil, storage and transportation to Refinery site. EOL proposes to install a marketing terminal in the Refinery complex with adequate facilities. EOL has entered into an MOU with Essar Gulf for the supply of crude oil to EOL in the event of decanalisation of crude imports, at market based prices, as per principles and procedures to be mutually agreed at a later date. 1995 EOL has entered into a contract with Essar Gulf FZE (Essar Gulf), a company based in UAE for supply of imported equipment. EOL has entered into a contract with Essar Projects Limited a group company, for supply of indigenous Equipment and Materials and for construction and erection of all Equipment at site. The Company entered into an MOU with Government owned public sector oil company, Indian Oil Corporation Limited for marketing and distribution of its products.

The Company has issued 45,000,000 Warrants to Essar Investments Limited which give right to EIL to exercise the option to subscribe for 45,000,000 equity shares of the Company at a price of Rs 25/- per share. The paid up share capital and share premium would increase by Rs 450,000,000 and Rs 675,000,000 respectively. 1996 The Equity Share capital has increased due to the allotment of 3,70,01,400 Equity Shares and conversion of Part A of 11,29,18,953 Optionally Fully Convertible Debentures into Equity Shares allotted on April 24, 1995 pursuant to Public Issue, which are eligible for pro-rata dividend. The energy division has made entry into Qatar with a three year contract from Qatar General Petroleum Corporation for our deep Rig. It is proposed to produce 87 million barrels of oil and about 1 billion cubic metres of associated gas. A Marketing division has been set up to source, handle and market petroleum products for the group in line with the Government's policy from time to time. The Division is also engaged in LPG trading activities and operates LPG and NGL installations at Hazira for supplies to Steel & Power plants apart from trading. 1997 Essar Oil has joined the National Securities Depository Limited (NSDL). Essar Oil Ltd has decided to hike its petroleum refinery capacity at Vadinar in Gujarat from nine million tonnes to 10.5 million tonnes. Essar Oil, the Essar oil company, has recently been awarded the exploration rights for two new oil blocks, the Cambay basin and the Cachar. The Exploration and production (E&P) division of the company has also signed production sharing contracts for three more exploration blocks-two onshore blocks in Rajasthan and one offshore in the Mumbai offshore basin. Essar Oil is the first and only Indian company to enter the international market for contract drilling services through its energy division. The government is set to award the prized Ratna R series oil field in Maharashtra to Essar Oil for oil exploration activity.

Essar Oil Ltd is raising the installed capacity of its refinery at Jamnagar by 1.5 million tonne per annum, resulting in additional investment of Rs 465 crore in the project. Essar Oil has also entered into a memorandum of understanding (MoU) with IOC where the oil-PSU will market the products from the Vadinary oil refinery. Kandla Port Trust (KPT) has entered into an agreement with Essar Oil Limited for setting up major facilities for handling POL, under the existing schemes of private participation. Essar Oil Ltd and Reliance Petroleum Ltd have sought 13 per cent equity each in a proposed pipeline joint venture. 1998 The Ruias-owned Essar Oil (EOL) has forged alliances with three foreign oil companies and Hindustan Oil Exploration Company (HOEC) for joint exploration activities in the country. The company has initiated a marketing agreement with the public-sector Indian Oil Corporation (IOC), according to which, 50 per cent of the offtake from the refinery would be through IOC, and the balance through BPCL. 1999 Essar Oil has unveiled plans to raise the capacity of its refinery to over 21 million tonnes a year. The refinery will produce aviation turbine fuel (ATF), high speed diesel, superior kerosene oil, naphtha and liquefied petroleum gas (LPG). Essar Oil's delayed equity payment in Petronet India's Vadinar-Kandla pipeline could adversely affect the schedule of debt disbursement for the project. Crisil downgraded Rs 765-crore (Rs 7.65 billion) worth of non-convertible debenture issues of Essar Oil to C from BB plus as the company had not tied up funds for a project. Essar Oil and Bharat Petroleum Corporation (BPCL) have hired Price Waterhouse Coopers and SBI Caps to independently evaluate the Ruias-promoted refinery and expedite the process of the latter buying an equity stake in the company. Essar Oil picked up 6.5 per cent of the Petronet VKP's equity (65 lakh shares) for a consideration of Rs 6.5 crore.

2000

Essar Oil proposes to hive off its drilling division into a separate entity. Jagdeesh Mehta is the new Managing Director of Essar Oil. Essar Oil Ltd. has appointed Mr. Prashant S. Ruia as Director in place of Mr. A.S. Ruia. 2001 Essar Oil Ltd’s 10.5 million metric tonne refinery at Vadinar in Gujarat has achieved financial closure and is at an advanced stage of complying with certain pre-disbursement conditions stipulated by the financial institutions (FIs) and banks 2002 Decides not to acquire 33.59% government shares in IBP company Ltd. Financial Institutions ask for revamping before sanctioning loans to the sick oil company. IDBI approves for restarting the work at Essar oil refinery project at Vadinar, Gujarat. Mr V R Sahasrabuddha appointed as the nominee of debenture trustees (ICICI Ltd). Government declares the application for marketing of motor spirit and high speed diesel as unsatisfactory. ONGC, Essar and Reliance receives authorisation from government to sell petrol and diesel. Discloses shareholding according to Sebi Regulations, 1992. Changes its trustees according to Sebi Regulation, 1993 – according to which the lenders of the company cannot continue as trustees. Negotiates with PSU refineries to source products for its entry into retail marketing of petro products. Gets permission from Registrar of companies to extend the financial year by six months. 2003

Asks Petroleum Ministry to intervene for completion and start of its vadinar project and asks for equity participation in the project by unwilling IOC. Shareholders approve for the arrangement of sale of Energy Division to Bin Jabr group Ltd, an oil and gas service provider based in Abu Dhabi. Shri E B Desai, Director and Shri P S Teckchandani, Wholetime Director retire from their respective offices and ceases to be the director. The delay in completing the project compelles the company for the payment of interest to its debenture holders. Finally persuades its lenders to agree on the financial revamping for its 10.5m tonne refinery project at Jamnagar. Concludes the sale of its energy division to Abu Dhabi for a total consideration of {FILE_CONTENT}.6m. Asks debenture holders to wait for 22 years more to take back their money. Started marketing imported products. The first consignment of imported HSD already arrives. Gets corporate debt restructuring groups approval to restart its vadinar project. Appoints Mr R K Chavali as the Nominee on the Board of the company in place of Mr Kamal Kishore. Gets the nod to struck Ratna and R-series oilfield contract. Board approves for the issue of equity shares upto Rs.1300cr on a preferential basis to ABB Lumus.

Tenders to acquire the stakes from the other holders of Petronet Central India, which is a petroproduct pipeline company. Sets up its first retail outlet at Devrukh in Ratnagiri District of Maharashtra. Essar adjourns meeting of its holders of fully paid 14% secured redeemable non-convertible debentures of Rs.105/- each holding more than 2000 debentures. Shareholders approve for the following at the EGM: Increase in authorised share capital from Rs 15000 million to Rs 20000 million Issue/allotment of equity shares/FCCBs/and/or any other financial instrument convertible into equity shares to ABB Lummus and/or promoters on preferential issure basis for an amount not exceeding Rs 13000 million. Issue and allotment of equity/other

financial instruments for an amount not exceeding US$ 250 Mn through Public/Euro issue. Voluntary delisting of equity shares from the DSE, CSE, MSE, ASE, VSEand SKSE Divides Petro marketing Biz into two entities called 'retail' and 'institutional'. The company has bagged a tender for diesel supplies to the Bangalore Metropolitan Transport Corporation (BMTC), which runs a fleet of 2,959 buses in the garden city. Essar Oil Ltd and Castrol India Ltd on December 11, 2004, signed an agreement for sale of Castrol lubricants through Essar Oil fuel outlets throughout the country 2005 Essar Oil inks deal with Myanmar for exploration 2006 Essar Oil joins hand with US firm for CBM exploration 2007 Essar Oil mulls to raise 0mn via ECB 2009

Essar Oil inked a Product Sale, Purchase and Infrastructure Sharing MoU with Indian Oil Corporation. 2010 Amalgamation of the 100% subsidiary, Essar Oil Vadinar Ltd. With Essar Oil ltd. Essar Oil declared winner of four Coal Bed Methane blocks. Essar of India has for the first time won a contract under the open tender system (OTS) to import crude oil for processing at its Mombasa-based refinery. 2011 Essar Oil initiates gas production from CBM block Essar Oil Limited announced the appointment of Naresh Nayyar as Deputy Chairman and Lalit Kumar Gupta as Managing Director and Chief Executive Officer.

2012 Essar Oil commences production of VG grade bitumen by processing a judicious mix of crudes and blending components. Essar Oil - L&T sign MoU for bitumen supply

Essar Group is an Indian multinational conglomerate corporation headquartered at Mumbai, Maharashtra, India. The company has presence in sectors like steel, energy, power, communications, shipping ports, logistics and construction. With operations in more than 20 countries across five continents, the group employs 75,000 people, with revenues of USD 17 billion. Essar began as a construction company in 1969 and diversified into manufacturing, services and retail. Essar oil is a fully integrated oil & gas company of international scale with a strong presense across the hydrocarbon value chain.

Over the last decade, it has grown through strategic global acquisitions and partnerships, or through Greenfield and Brownfield development projects, capturing new markets and discovering new raw material sources. Essar is managed by SHASHI RUIA, Chairman – Essar Group and RAVI RUIA,Vice Chairman Essar Group.

ESSAR FOUNDATION

VISION

To become a catalyst of positive change in society

MISSION

To improve the quality of social and economic life of our neighborhood communities and to make a positive contribution to the life of all those who are directly or indirectly impacted by our business, products and services

BACKGROUND AND HISTORY OF THE ORGANISATION

The Company was incorporated in June 1976 under the name of Essar Construction Limited and was engaged primarily in core sector activities, including marine construction, pipeline laying, dredging and other port related activities..

In 1984, the Company ventured further into other core sectors mainly the field of exploration and development, drilling onshore and offshore oil and gas wells for Indian Public Sector oil exploration companies. In view of this the Company's name was then changed to Essar Offshore and Exploration Limited in May 1987.In August 1987, the Company's name was changed to Essar Gujarat Limited, to reflect its highly diversified business interest. In 1988, the Company made an initial public offer for its shares, which are now listed in Bombay Stock Exchange, National Stock Exchange of India.

Essar Oil Limited (EOL) is an India-based company engaged in the exploration and production of oil and gas, refining of crude oil, and marketing of petroleum products. Vadinar refinery, which produced 14.76 million metric tons, had a capacity of 20 million metric tons per annum. It operates in three segments: refining, including expansion and marketing; exploration and production activities and others.

The Essar Group is widely regarded as a responsible and conscientious global employer. It has experience in managing businesses in different geographies with a culturally diverse workforce. This is why its people practices are sensitive to cross-cultural nuances. The Group's people strategy is focused on promoting a learning culture that continually enhances the professional skills of its employees.

The combined assets of Essar Power and Essar Oil constitute Essar Energy plc, a company that was listed on the London Stock Exchange in 2010 following a highly successful Initial Public Offer (IPO), the second largest overseas IPO ever floated by a company of Indian origin.

Essar Oil serves retail customers through a modern, countrywide network of over 1,400 operational retail outlets with over 250 outlets in various stages of construction.

Tie-ups with other oil marketing companies give Essar Oil access to the products and the right to use their terminals and facilities for placing and marketing our products. This gives the company pan-India presence with more than 30 supply locations.

We offer a wide range of products to bulk customers in the industrial and transport sectors. EOL has product off take and infrastructure sharing agreements with oil PSUs, namely Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation (IOCL). We have received approvals to supply Aviation Turbine Fuel (ATF) to the Indian Armed Forces.

Essar Steel produces customized products catering to a variety of products segments and India’s largest exporter of flat products to the US and European markets, and to those of South East Asia and the Middle East.

1] OIL& GAS BUSINESS

• A fully integrated oil & gas company of international scale with strong presence

across the hydrocarbon value chain from exploration & production to oil retail • Access to a global portfolio of onshore and offshore oil & gas blocks, with about 45,000 sq km available for exploration • Largest coal bed methane (CBM) player in India • Over 300,000 bpsd (barrels per stream day) of crude refining capacity that is being expanded to 405,000 bpsd• Fifty percent controlling stake in Kenya Petroleum Refineries Ltd, which operates a refinery in Mombasa, Kenya, with a capacity of 80,000 bpsd• Over 1,600 Essar-branded oil retail outlets in various parts of India

2] STEEL BUSINESS

• A global steel producer with 14 million tonnes per annum of current capacity, with an aim to achieve a global capacity of 20-25 million to tonnes

• Presence in key markets in Asia, Europe and North America

• Specialised plants for value-added steel products like pipes and plates Aerial view of Essar steel facility

3] POWER BUSINESS

• Current generation capacity of 1,600 MW that is being expanded to 6,100 MW by 2012, and to 11,470 MW by 2014 • Growing portfolio of gas, coal and liquid fuel-based power plants • One of the lowest cost power producers • Exploring new opportunities in conventional and renewable power generation globally • Expanding in the transmission sector; first private power company to get a transmission license

4] COMMUNICATIONS BUSINESS

• A global player in the communications sector with presence in telecom services, CDIT and Business Process Outsourcing services • Telecom services in India and Africa with over 135 million subscribers• Business Process Outsourcing services, employing over 50,000 peopleSHIPPING, PORTS & LOGISTICS BUSINESS• An integrated logistics solution provider with presence in sea transportation, ports & terminals, logistics and oilfields services

History of ONGC

To further the development of oil and natural gas exploration and mining in India, the Ministry of Natural Resources and Scientific Research, GoI set up the Oil and Natural Gas Commission‘ in 1956 (Commission'). In October 1959, the Commission was converted into a statutory body pursuant to the Oil and Natural Gas Commission Act, 1959 (now repealed). The main functions of the Commission were to plan, promote, organize and implement programmes for development of petroleum resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as the Central Government may, from time to time, assign to it. Our Company was incorporated under the Companies Act on June 23, 1993 as Oil and Natural Gas Corporation Limited and was granted the certificate of commencement of business on August 10, 1993. Pursuant to the Oil and Natural Gas Commission Act (Transfer of Undertaking and Repeal) Act, 1993, the undertakings of the Commission together with all its assets, movable and immovable properties, contracts, licenses and privileges along with all liabilities and obligations of the Commission in relation to its undertakings stood vested in our Company and were transferred to our Company on February 1, 1994. 1956 Oil and Natural Gas Corporation(ONGC) was set up in 1956 with significant contribution in industrial and economic growth of the country. 1959 In October the Commission was converted into a statutory body by the Oil and Natural Gas Commission Act, 1959. The main objectives of the Commission were to plan, promote, organise and implement programmes for the development of oil and natural gas resources and the production and sale of oil and natural gas products. ONGC functions as the primary arm of the Government as regards exploration for and exploitation of India's petroleum resources. The Company's revenues are derived primarily from the sale of its production of crude oil, natural gas, liquefied petroleum gas (LPG),C2-C3 (ethane-propane) and natural gasoline (NGL). - To strengthen reserves accretion portfolio and open up areas of future exploration, ONGC has undertaken an Accelerated Programme of Exploration with an outlay of Rs 3958 crores. - The main objectives of APEX was Enhancement in seismic surveys, enhancement in exploratory drilling, national seismic programme, exploration in frontier areas and acquisition of foreign acerage. - ONGC has assimilated various technologies in the field of hydrocarbons explorations and exploitation. The Company owns

Dornier-228 aircraft, chetak helicopter, offshore supply vessels and geo-technical survey vessel. It has 2 central work shops located at Baroda & Sibsagar, 7 project workshops and 11 auto workshops located at various project sites employing multifavious equipments and machinery. It has also state-of-the-art communication systems both terrestrial and satelite based for meeting operational & MIS requirements of onshore & offshore. 1992 - ONGC undertook exploitation of Coal Bed Methane (CBM) potential in Damodar valley. 1993 Our Company was incorporated as 'Oil and Natural Gas Corporation Limited'. The undertakings of the Commission were transferred to our Company. 1994 - The Company acquired the undertaking, business, assets and liabilities of the erstwhile Oil and Natural Gas Commission (the Commission) on 1st February. 1996 - The company's major projects include installed HX-HY platform for the development of Heera Phase III completion of Hazira terminal phase IIIA & the two EOR projects in the heavy oil velt in North Gujarat. In addition, ONGC submitted four new projects for government approval. - ONGC holds 40% participating interest in three joint venture contracts for development of Ravva, Panna-Mukta and Mid & South Tapti. - The Company embarked upon exploration in the deep sea basin on the East and West Coast of the country. The interpretation of Seismic data acquired in the deep water offshore areas led to identification of a number of prospects in Krishna-Godavari, Cauvery, Kerala-konkan & Kutch basins. - The Government gave its approval for a joint venture proposal of Gas Authority of India Ltd., Indian Oil Corporation, Bharat Petroleum Corporation Ltd. & ONGC for import of LNG & setting up appropriate LNG terminals to meet the demand for gas in the country.

- ONGC Videsh Ltd is a wholly owned subsidiary of the company. - 3428,53,716 shares issued to the President of India. 1076,440,366 No. of equity shares issued as bonus shares. 66,39,910 No. of equity shares disinsted. 1997 -Our Company was granted the 'Navratna' status. - ONGC and Bharat Petroleum Corporation Ltd (BPCL), are exploring the possibility of setting up the proposed paraxylene venture at Hazira as a private sector project. - The Oil and Natural Gas Corporation (ONGC) has taken up joint venture projects in the fields of exploration, development and production in seven countries: the United States, Russia, Vietnam, Yemen, Tunisia, Egypt and Kazakshtan. - The Institute of Oil and Gas Production Technology (IOGPT), a premier research and development institute of Oil and Natural Gas Corporation Ltd has been awarded the prestigious certificate of ISO 9001 for design development and consultancy including lab study and training for hydrocarbon production, processing and refining. - ONGC would float a joint venture company to carry out exploration at Neelam - an oilfield at Mumbai High. The venture with a private foreign company would be set up with an equity participation of 50 per cent each. - The ministry of petroleum and natural gas has invited joint ventures with Oil and Natural Gas Corporation for exploration. - Royal Dutch Shell group, the world's largest oil company, plans to join hands with Oil & Natural Gas Corporation to help revive production at the Neelam oil field of the public sector company. - For the first time in India, Oil and Natural Gas Corporation Ltd (ONGC) has installed a 24-hour video conferencing facility from its control room at Bandra to offshore platforms in Mumbai Offshore. - Leading global oil companies like Chevron, Occidental, Brown and Root Energy Services (BRES), Total, Marathon Oil, Shell and Amoco have approached the Oil and Natural Gas Corporation (ONGC) for a joint venture to enhance crude oil output from the Neelam field. - The joint venture committee of the Oil and Natural Gas Corporation (ONGC) is close to finalising plans for picking up a stake in the Central India refinery.

- Oil and Natural Gas Corporation (ONGC) is all set to implement of part of the recommendations made by McKinsey & Co within two months. - For the first time, Oil and Natural Gas Corporation (ONGC), the oil exploration major, has evinced keen interest to participate in the equity of a captive power project in Tamil Nadu. - ONGC Ltd and PGS Ocean Bottom Seismic, a Norwegian company, have signed a Rs.180-crore contract for a three-dimensional ocean bottom cable technique seismic survey over the Mumbai High field. - PGS of Norway has been awarded the world's largest 3-D seismic survey contract for Bombay High. This is the first time that Oil & Natural Gas Corporation (ONGC) has awarded a turnkey contract, consisting of acquisition, processing and interpretation of seismic data. - India's largest oil exploration and production (I&P) company, Oil and Natural Gas (ONGC) is all set to emerge as a major blue chip in the next millennium. - Oil and Natural Gas Corporation (ONGC) has signed a pact with Chinese National Oil Co for Exploration and Development to undertake operations in other countries. 1998 - The proposed joint venture between the Oil and Natural Gas Corporation (ONGC) and Lubrizol India may come a cropper. - Oil and Natural Gas Corporation (ONGC) board will shortly consider incorporating a new subsidiary for taking on contract jobs at home and abroad. - Public sector giants ONGC and Gas Authority of India Ltd (GAIL) have locked horns over the setting up of an LPG recovery plant at Gandhar in Gujarat. - The Oil and Natural Gas Commission has signed an agreement with the two government-sponsored gas units of Bangladesh to start exploratory drilling in Brahmanbaria and Habigonj region of the neighbouring country. After signing of agreement, the ONGC has recently set up its office in Dhaka. - The state-owned petroleum giant Oil and Natural Gas Corporation will soon initiate a large-scale organisation restructuring programme as part of efforts to make it more competitive in a liberalised global regime.

- Oil and Natural Gas Corporation (ONGC) is holding negotiations with Arco, an American company, for setting up a 50:50 joint venture for coal bed methane (CBM) exploration projects. - Oil and Natural Gas Corporation (ONGC) has launched a major oil hunt for the first time in the deep waters off the Krishna-Godavari (KG) basin last week when its refurbished offshore rig, Sagar Vijay, commenced drilling operations at 530 metres depth in a structure off the Amalapuram coast in south Andhra Pradesh. - State-owned Oil and Natural Gas Corporation (ONGC) is planning to set up a state-of-the-art integrated radio communication system which would interconnect the company's different offices within the country. 1999 - ONGC and the Russian oil giant Lukoil entered into an agreement last week for opening up increased opportunities for joint oil exploration and exploitation in Central Asian countries. - Oil and Natural Gas Corporation Limited has mooted the idea of setting up a separate subsidiary in information technology to develop operational and distribution expertise for the oil and petroleum industry. - The Oil and Natural Gas Corporation (ONGC) has set up an expert committee to inquire into the first ever fire at a gas producing well. - The Oil and Natural Gas Corporation Ltd (ONGC) will set up two major oil spill response centres in Mumbai and Kakinada along the western and eastern coasts, to combat emergency situations arising out of oil spills. - In March, 1999, ONGC, Indian Oil Corporation (IOC) a downstream

giant and Gas Authority of India Limited (GAIL) the only gas marketing

company, agreed to have cross holding in each other's stock to pave the

way for long-term strategic alliance amongst themselves, both for the

domestic and overseas business opportunities, in the energy value

chain. 2000 - Oil and Natural Gas Corporation and Oil India Ltd have signed their annual memoranda of understanding (MoUs) with the government for performance targets for 2000-01. - Oil and Natural Gas Corporation Ltd. has entered into refinance agreement with the Bank of America for a 0 million syndicated loan to help ONGC repay its earlier costlier Citibank loan. - The Company and Indian Oil Corporation Ltd. have proposed a strategic partnership by way of setting-up an independent corporate entity for exploration and production of hydrocarbons and their refining and marketing abroad. - The Oil and Natural Gas Corporation is exploring the option of introducing a voluntary retirement scheme for select groups which work in highly specialised activities like drilling. - Coal India Ltd and Oil and Natural Gas Corporation have joined hands to set up a joint venture project for undertaking commercial exploitation of coal bed methane, which occurs in high rank coals in the coalfields of Raniganj west, Jharia ast, West Bokaro, Ramgarh and eastern part of north Karanpura. - Indian Petrochemicals Corporation Ltd (IPCL) has entered into a long-term agreemen with Oil and Natural Gas Corporation (ONGC) Ltd. for the supply of nearly 5,70,000 tonnes per year of feedstock for its 4,00,000 tonne ethylene cracker at Nagothane. - The Company is all set to sign a Memorandum of Understanding with Venezuela oil major Petroles, for joint efforts in upstream activities. - The Company while gearing up for deregulation of the hydrocarbons sector in 2002, will set up a separate marketing division in the month of September. - ONGC and IOC two companies have formed aj oint venture, ONGIO, a name derived by mrging the initial letters of their respective acronyms, which will explore opportunities in training and consultancy in the oil Industry. - The Company to set up a separate information technology company which will cater specifically to the oil and gas industry.

- NTPC and ONGC are forming a new joint venture company for setting up gas residue-based power projects. - The Company would set up a 360-MW gas-based power project at Hazira in a joint venture with the National Thermal Power Corporation. - ONGC Videsh Ltd. will sign an MoU with Indonesian Oil Company Pertamina. - The Company and Reliance have joined hands with Algeria's Sonatrach to secure an oil field in Iraq for production of crude. - The Oil and Natural Gas Corporation (ONGC) and BSES have signed a memorandum of understanding (MoU) wherein natural gas from an oil well - 75 km north of Bombay High - will be suppled exclusively to BSES. 2001 - Oil & Natural Gas Corporation Videsh Ltd., the overseas subsidiary of ONGC, will sign a 1.7 billion dollar deal with Russian national oil company Rosneft for taking 20 per cent stake in Russian Far East oil and gas field Sakhalin-I, in Mosocow on February 10. - Oil and Natural Gas Corporation has signed a memorandum of understanding with the Ministry of Petroleum and Natural Gas for the production of 25.2 million tonnes of crude oil during 2001-2002. - The Company has tied up with Indian Oil Corporation for undertaking oil exploration for eight deep-water blocks under the National Exploration Licensing Policy (Nelp) II. The tie up aims at reducing the financial risks involved in deep-water exploration. - ONGC has formulated an exploration strategy for the next 20 years, with the twin objectives of doubling the reserve base to 12 billion tonnes oil (BtOE) equivalent besides raising the global recovery factor to 40 per cent or more. - The ONGC, principally an oil and gas exploration and production company, has entered the refining sector too with the commissioning of the Tatipaka mini-refinery in East Godavari district on September 3rd - : As part of its mega restructuring exercise, the Oil and Natural Gas Corporation has introduced a voluntary retirement scheme for trimming its 40,000 strong work force all over the country. - The Oil and Natural Gas Corporation (ONGC) plans to invest Rs 5,000 crore in the oil and gas exploration business in order to double its

reserve base to 12 billion tonnes oil equivalent by 2020, according to the ONGC Chairman and Managing Director, Mr Subir Raha. - The Consortium of Cairn Energy, Oil and Natural Gas Corporation and Tata Petrodyne will invest about 0 million in development of Lakshmi oil and gas field in Gulf of Khambat by 2008. - OIL AND Natural Gas Corporation (ONGC) won a two-decade-old litigation in the Supreme Court last week when it directed some 10 industries in Gujarat to pay ONGC interest at the contracted rates on arrears retained by them during the long period. With this order, ONGC is expected to get around Rs 500 crore. -The company entered into strategic alliance with Indian Oil

Corporation and set-up ONGIO Internatinal Pvt Ltd. on 8th June 2001 a

50:50 joint venture company for Training, Consultancy & Services in

Hydrocarbon Sector. 2002 - The board of directors of Oil and Natural Gas Corporation (ONGC) has approved the acquisition of the Aditya Birla group's stake in the joint venture Mangalore Refinery and Petrochemicals Ltd (MRPL). - ONGC scraps 350 MW naphtha based Hazira power project - ONGC decides to offer equity for international oil majors with which the company would enter into agreement for deep-water exploration. - Enters into contract with Gas Authority of India Ltd. (GAIL) for supply agreements which include both customer end and supply end contracts. - Acquires 20% in gas project of Daewoo International in South Korea - Retains top most profit making Public Sector Company (PSU) status - Company dethrones Hindustan Lever Ltd. (HLL) to become India's largest company by market capitalisation - Signs MoU with Bharat Heavy Electricals Ltd (BHEL) for supply, upgradation and refurbishment of oilfield equipment required for

on-shore and off-shore applications - Signs price pact with Indian Petrochemicals Corporation Ltd (IPCL) for Ethane and Propane removing the one of the last hurdles for privatisation of IPCL - Gets membeship of Federation of Indian Chamber of Commerce & Industry (FICCI) - Government authorises the company to retail petrol & diesel - Discovers 363 million metric tonnes of crude oil in Gujarat - Govt invites the company to join Haldia Petrochemicals Ltd. (HPL) - Hindustan Petroleum Corporation Ltd. (HPCL) ties-up with ONGC to purchase LPG - ONGC strikes deal with refiners to sell crude at international prices - ONGC ranked no.1 among ET 500 - Bags 13 oil blocks under New Exploration Licensing Policy (NELP) - Hits oil and gas in deep-water exploratory block off the Andhra Pradesh coast - ONGC Videsh ties up with Talisman Energy Inc of Canada for the purchase of 25 per cent interest in the Greater Nile project , in Sudan with an oil reserve of 150 million metric tonnes 2003 - Strikes huge oil and gas reserves west of its Bassein field in the Mumbai offshore region - Finds oil and gas in four locations in offshore Mumbai, Assam and Krishna Godavari basin - Discovers major oil and gas leads at five new locations ( Laiplingoan in the upper Assam basin and Kavitam in the KG basin - onland, B-22-5 in Mumbai offshore and GS-KW in the KG basin - offshore) - Ties up with IOC for supply of crude oil - Acquires 37.38% Equity Stake in Mangalore Refinery & Petrochemicals Ltd. (MRPL)

- ONGC Videsh Ltd. (OVL) purchases 25% stake of Canadian Talisman Energy in Sudan oilfield for 1 million - Strikes oil and gas in Rajasthan - Transfers the operations and maintenance (O&M) of its three multi-support vessels (MSVs), Samudra Suraksha, Samudra Sevak and Samudra Prabha, to Shipping Corporation of India (SCI) - Retains top spot in market cap in ET 500 - Gets the first consignment of its equity oil from the Greater Nile oil project in Sudan, where ONGC Videsh Limited (OVL) has taken a 25 per cent stake - Ships Sudan oil to India, the first ever shipment of Indian crude from a foreign field - Company ranked in FT Global 500 list - Enters into an MOU with Bharat Petroleum Corporation Ltd (BPCL) for supply of crude oil for a period of two years from April 01, 2002 to March 31, 2004 - Hikes stake in Mangalore Refinery & Petrochemicals Ltd. (MRPL) to 71.49% from 51.25% - Ends its two-year training and consultancy services joint venture with oil refining giant Indian Oil Corporation - Kicks off deep-water exploration programme - ONGC Videsh inks sales pact with Austria-based OMV Aktiengesellschaft for acquisition of the OMV Aktiengesellschaft's shares in two onshore exploration blocks in Sudan for a consideration of 5 million - Signs agreement with HPCL to supply crude oil -Cabinet asks ONGC to share part of subisdy onus on cooking fuels -Smt R D Barkataki, Dr K R S Murthy, Shri J Jayaraman and Jawahar Vadivelu ceased to be Navratna directors of the corporation. Shri U Sundararajan, Rajesh V Shah and M Chitale have been appointed as Navratna directors. -Signed Memorandum of Understanding (MOU) for supply of crude oil with HPCL..

-Oil and Natural Gas Corporation has agreed to be an equity partner of Gujarat Industrial Development Corporation for setting up the Dahej Special Economic Zone in south Gujarat. As per the MoU, ONGC will pick up 26 per cent equity and will be responsible for the infrastructure development of the SEZ. - Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation (BPCL) signed an agreement to cooperate with each other through sharing of their core strengths for exploration and production, and downstream oil refining and marketing. -signed MoU with mangalore refinery and petrochemicals ltd for supplying crude oil -Commenced drilling in its 46th well in the Bengal basin. Named Gobindapur 1, -The company entered into a Transaction & Strategic alliance with Cairn Energy Plc. -The company joins with China Petro to buy oil equity. -Unveils billion deep water drilling campaign at Gulf of Kutch -The Cabinet Committee on Economic Affairs on December 18th approved award of five coal bed methane blocks for extracting gas from coal seams to state-run Oil and Natural Gas Corporation. -ONGC - Disinvestment of 10% Equity by Government of India -BSNL signs MoU with ONGC 2004 -Market capitalisation crosses Rs 100,000 crore - The board has approved a proposal to invest Rs 900 crore in a five-million-tonne C2-C3 extraction plan -Finance Minister allows ONGC to buy Mangalore Refinery and Petrochemicals stake -ONGC decides to offer 32 marginal fields to private operators -ONGC permitted to set up methane plant at Dahej -Concept Comm bags biggest IPO offer in ONGC -Service Contracts awarded by ONGC for six marginal Oil Fields

-ONGC launches the Deep-Water Campaign name Sagar Sammridhi -ONGC awards Rs 1,006 cr contract for Larsen & Toubro -Govt. of India divests 10% stake in the company by selling 14.26 crore shares at a cut-off price of Rs 750 per share -awards Rs 160 cr three year order to supply oil exploration equipment for BHEL -ONGC strikes oil in Bassein offshore field - ONGC, the upstream petro-biggie, has decided to float a special economic zone (SEZ) at Dahej, Gujarat in joint collaboration with the Gujarat Industrial Development Corporation (GIDC). -The government on March 23 issued Rs 348.6 crore worth of fresh oil bonds to public sector oil companies ONGC and OIL. The bonds carry a coupon rate of 5% for a five-year tenor. -ONGC Group sales breaches USD 10 Billion mark -The Oil and Natural Gas Corporation (ONGC) Ltd has discovered gas reserves at Khedabari village in Sonamura sub-division of West Tripura district with a production capacity of over two lakh cubic metre per day. -Oil and Natural Gas Corporation (ONGC) has tied up with the Indian Institute of Foreign Trade (IIFT) for launching a special MBA course in international business for its middle-level executives. -Oil and Natural Gas Corporation (ONGC) enters into separate memorandum of understandings (MoUs) with four leading service providers for value-based commercial alliance for efficiency in different sectors of exploration and production (E&P) activities -ONGC MoU with Schlumberger for value based commercial alliance -Oil and Natural Gas Corporation (ONGC) chairman and managing director Subir Raha has been conferred with the V Krishnamurthy award for excellence for 2004 -State-run exploration firm Oil and Natural Gas Corp (ONGC) has signed an agreement with Infrastructure Leasing and Financial Services (IL&FS) for setting up a gas-based power project in the North-East -PTC India Ltd (formerly known as Power Trading Corporation of India

Ltd) has entered into an agreement with Oil and Natural Gas Commission for trading of the entire surplus from ONGC's existing generating units and new power projects to be set up all over the country -ONGC wins polymers extraction project -OVL acquires 55 pc holdings in Australian oil block -ONGC in ally with KSPL, IL&FS to develop Kakinada SEZ -NLCL ties up with ONGC 2005 -ONGC clinches oil block deal in Nigeria -ONGC forays into retail market with launch of first outlet at Mangalore -Six ONGC geoscientists bag national mineral award -ONGC ties up with Hindujas for implementing LNG terminals - Oil and Natural Gas Corporation Ltd (ONGC) bags trophy from Asiamoney for `best deals of the year 2004'. - Oil and Natural Gas Corporation (ONGC) enters into a MoU with Indian Airlines to take two aircraft on lease to meet its operational requirements. -Oil and Natural Gas Corporation and Mittal Investments Sarl, one of the investment arms of the L.N. Mittal group, entered into two MoU to form two overseas joint ventures companies ONGC Mittal Energy Ltd (OMEL) and ONGC Mittal Energy Services Ltd (OMESL) -GMDC, ONGC forge alliance for coal gassification project. -ONGC signs MoU with IDE Infotech Ltd. -ONGC join hands with Rajasthan for Dholpur power project. -ONGC signs an agreement with CIL for coal mine gasification. -ONGC Finance Director gets award 2006 -ONGC ties up with Singareni

-ONGC signs MoU with Maruti -ONGC inks deal with Halliburton to enhance oil production -Dutch IT co secures contract from ONGC -ONGC joins hand with MUL for vehicle lease. -ONGC internal audit bags ISO 9001 rating. -ONGC has given the Bonus in the Ratio of 1:2 2007 -Oil and Natural Gas Corporation (ONGC) has signed a memorandum of understanding with Tatarska Geophysica Technologies (TGT) of Russia for increasing production of matured fields. -ONGC, Eni signs agreement to swap exploration blocks. -Oil & Natural Gas Corporation Ltd (ONGC) has signed a Memorandum of Understanding (MoU) with the Ministry of Petroleum & Natural Gas, agreeing on a set of Performance Parameters and targets for the financial year 2007-08. - ONGC has forayed into a memorandum of understanding (MoU) with global oil major, BP, to collaborate in exploration and production (E&P) business in India and abroad. 2008 - ONGC starts drilling in Cauvery deepwater block. - ONGC bags SCOPE Gold Trophy for strong Corporate Governance scorecard. - ONGC and Rocksource sign Agreement for Partnership in Deepwater Block. 2009 - Oil and Natural Gas Corp (ONGC) reported a gas discovery in the west Tripura block in the Assam and Assam Arakan basin. - ONGC achieves all-time record in oil, gas production. - ONGC awards contract worth Rs 753 crore to UAE Company. - Awarded the Golden Peacock Award for occupational health and safety.

2010 Our Company was granted the 'Maharatna' status. - Our Company has received certifications, awards and recognitions for achieving and maintaining high standards in various aspects of our business. Set forth below is a description of some of the certifications, awards and recognitions received by our Company in the last three fiscal years. - Ranked 1st among oil and gas exploration and production companies in the world and 18th among leading global energy majors as per =Platts 250 Global Energy Company‘ list. - Awarded 1st runners up for =Best Presented Accounts and Corporate Governance Disclosure Awards 2009‘ by South Asian Federation of Accountants, an apex body of South Asian Association for Regional Cooperation. - Selected as the =Natural Gas STAR Program‘s International Partner of the Year‘ by the United States Environmental Protection Agency. - Awarded the Golden Peacock Award for climate security. - Awarded the gold trophy for =SCOPE Meritorious Award for =Research & Development, Technology Development & Innovation‘ for 2008-09. - Awarded the 2nd =PSU Awards‘ for highest market capitalization by =Dalal Street Investment Journal PSU‘ awards. - Awarded the =BML Munjal Award‘ for excellence in learning and development in public sector category. 2011 - Awarded the Leading Oil and Gas Corporate of the Year and Exploration and Production Company of the Year in the Petroleum Federation of India‘s Annual Oil and Gas Industry Awards 2010. - State run crude major, Oil & Natural Gas Corporation (ONGC) will invest nearly US billion in Gujarat in the next three to four

years to intensify production, as per a senior official of the company. - Indian navratna crude company, Oil and Natural Gas Corp (ONGC) has recently shown interest in taking a part to develop Russia's Trebs and Titov Arctic oilfields jointly with Russian group Bashneft. - Sri lanka government awarded 3 hydrocarbon blocks to ONGC - The state-run oil and drilling major, ONGC has emerged as the largest advance taxpayer for FY11 with a payout of Rs 8,492 crore, pushing the prior year topper - ONGC sold 600,000 barrels of crude to Japan - Aban Offshore receives new orders from ONGC - ONGC with two new oil, gas discoveries in Gujarat - ONGC Petro additions Ltd (OPaL) awards Rs 1,980 cr contracts for polyolefin projects - State-run ONGC regained its top most rank after 4 years propelling billionaire Mukesh Ambani-led Reliance Industries (RIL) as the country's most valued company. - State-run Oil Natural Gas Corporation of India (ONGC) has finalized a three-year contract with subsidiary of Bermuda-headquartered driller Northern Offshore, Jet drilling. - ONGC appointed New Chairman after 8 months, Mr. Sudhir Vasudeva as CMD. - State run oil and exploration Company Oil and Natural Gas Corporation (ONGC) has approved buying Asian development Bank (ADB) stake in Petronet (PLL). -Company has splits its Face value of Shares from Rs 10 to Rs 5 -Oil And Natural Gas Corporation has given the Bonus in the Ratio of 1:1 2012 - State-run Bharat Heavy Electricals Limited (BHEL) said it has secured Rs 774 crore contract from Oil and Natural Gas Corporation (ONGC) for supplying onshore drilling rigs. - Country's leading oil & gas explorer ONGC announced that

Japan-based oil giant Inpex Corp has acquired 26 per cent stake in ONGC's Krishna Godavari (KG) basin deepsea block viz. KG-DWN- 2004/6 - ONGC Videsh signs definitive agreements to acquire an interest in the Azeri, Chirag and the Deep Water Portion of the Guneshli Fields in the Azerbaijan sector of the Caspian Sea and an interest in the Baku-Tbilisi-Ceyhan Pipeline. - State-run Oil and Natural Gas Corporation (ONGC) said it has made a huge oil discovery off the West Coast that will help lift the sagging output from its D1 oilfield by 24,000 barrels per day (bpd). - ONGC inks agreement with Cairn India to use gas from North Tapti fields 2013 - Afcons Infrastructure consortium bags 0 mn contract from ONGC - ONGC receives global recognition as oil major named in Green Rankings

Global Ranking

Only Indian energy major in Fortune's Most Admired List 2012 under 'Mining, Crude Oil Production' category.

It is ranked 171th in Forbes Global 2000 list of the World's biggest companies for 2012 based on Sales (US$ 26.3 billion), Profits (US$ 5 billion), Assets (US$ 51 billion) and Market Capitalization (US$ 46.6 billion).

ONGC has been ranked 39th among the world's 105 largest listed companies in 'transparency in corporate reporting' by Transparency International making it the most transparent company in India.

ONGC is India's Most Valuable Public Sector Enterprise

The Company won Petrified Oil & Gas Industry Awards 2011 in three categories - "Environmental Sustainability: Company of the Year", "Human Resource Management: Company of the Year" and "Innovator of the Year: Team (Won by IOGPT)".

It was bestowed with "Most Attractive Employer" Award in Ramstad Awards 2011

Won "Golden Peacock Award for Sustainability" for the year 2011

Awarded with the Gold Trophy of SCOPE Meritorious Award for "Environmental Excellence & Sustainable Development" for the Year 2010-11 by former President Smt. Pratibha Devising Pail

Anointed "Outstanding PSU of the Year" at AIMA Managing India Awards 2012

Awarded the Best overall Performance PCRA Award in the Upstream Sector (Oil & Gas) for 3rd consecutive year

Awarded the "ICSI National Award for Excellence in Corporate Governance for 2011"- Certificate of Recognition

Awarded NIPM National Award for Best HR Practices – 2011

Adjudged amongst 20 Top Companies for Leaders 2011 in Aon Hewitt Awards

"Best Enterprise Award" for the organization in the Maharatna and Navaratna Category at the 22nd National Meet of Women in Public Sector (WIPS)

It was bestowed with Safety Innovation Award 2011 in the Oil & Gas sector for innovative safety measures

OVL Honoured with SCOPE Excellence Award for Excellence and Outstanding Contribution to the Public Sector Management

Vision:

Realization of the full societal, economic and scientific benefits of

integrating electronic location resources into commercial and institutional

processes worldwide

Mission:

To serve as a global forum for the collaboration of developers and users of

spatial data products and services, and to advance the development of

international standards for geospatial interoperability

ONGC Represents India's Energy Security Through its Pioneering Efforts

ONGC is the only fully–integrated petroleum company in India, operating along the entire hydrocarbon value chain. It has single-handedly scripted India's hydrocarbon saga. Some key pointers:

ONGC has discovered 6 out of the 7 producing basins in India:

It has 7.59 billion tonnes of In-place hydrocarbon reserves. It has to its credit more than 320 discoveries of oil and gas with Ultimate Reserves of 2.69 Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas (O+OEG) from domestic acreages.

It has cumulatively produced 851 Million Metric Tonnes (MMT) of crude and 532 Billion Cubic Meters (BCM) of Natural Gas, from 111 fields

ONGC has won 121 out of a total 235 Blocks (more than 50%) in the 8 rounds of bidding, under the New Exploration Licensing Policy (NELP) of the Indian Government.

ONGC's wholly-owned subsidiary ONGC Videsh Ltd. (OVL) is the biggest Indian multinational, with 30 Oil & Gas projects (9 of them producing) in 15 countries.

Produces over 1.24 million barrels of oil equivalent per day, contributing over 64% of India's domestic production. Of this, over 75% of crude oil produced is Light & Sweet.

The Company holds the largest share of hydrocarbon acreages in India (51% in PEL Areas & 67% in ML Areas).

ONGC possesses about one tenth of the total Indian refining capacity. ONGC has a well-integrated Hydrocarbon Value Chain structure with interests

in LNG and product transportation business as well. A unique organization in world to have all operative offshore and onshore

installations (403) accredited with globally recognized certifications.

Competitive Strength

All crudes are sweet and most (76%) are light, with sulphur percentage ranging from 0.02-0.10, API gravity range 26°-46° and hence attract a premium in the market. Strong intellectual property base, information, knowledge, skills and experience

Maximum number of Exploration Licenses, including competitive NELP rounds, ONGC has bagged 121 of the 235 Blocks (more than 50%) awarded in the 8 rounds of NELP.

ONGC owns and operates more than 26,600 kilometers of pipelines in India, including sub-sea pipelines. No other company in India operates even 50 per cent of this route length.

Perspective Plan 2030 (PP2030)

PP2030 charts the roadmap for ONGC's growth over the next two decades. It aims to double ONGC's production over the plan period with 4-5 per cent growth against the present growth rate of 2 percent. In physical terms the aspirations under Perspective Plan 2030 aims for -

Production of 130 mmtoe of oil and oil equivalent gas (O + OEG) per year and accretion of over 1,300 mmtoe of proven reserves.

Grow ONGC Videsh Limited (OVL) six fold to 60 mmtoe of international O+OEG production per year by 2030.

More than 20 mmtoe of O+OEG production per year in India coming from new unconventional sources such as shale gas, CBM, deepwater and HPHT (High Pressure & High Temperature) reservoirs.

Over 6.5 GW power generation from nuclear, solar and wind and 9 MTPA of LNG.

Scaling up refining capacity to over 20 MMTPA and targeted investments to capture downstream integration in petrochemicals

Financials (2011-12)

ONGC group's turnover during 2011-12 has been Rs. 150,185 Crore with net profit of Rs. 28,144 Crore. ONGC paid the highest-ever dividend of Rs. 8,342 Crore. The Net Worth of ONGC Group of companies is Rs. 135,266 Crore.

During 2011-12, the turnover of ONGC (on standalone basis) has been Rs. 76,887 Crore with net profit of Rs.25,123 Crore; the highest-ever despite sharing under-recovery of Rs.44,466 Crore to the Oil Marketing Companies (OMCs) as per the instructions of the Government of India. Net worth of ONGC (on standalone basis) has been Rs.1, 11,784 Crore.

OVL's consolidated gross revenue increased by 21% from Rs. 18,671 Crore during 2010-11 to Rs.22,637 Crore during 2011-12 and consolidated net profit increased by 1% from Rs. 2,621 Crore during 2010-11 to Rs. 2,721 Crore during 2011-12.

The turnover of MRPL has been Rs.52,207 Crore, up 19% from Rs.43,800 Crore and net profit has been Rs.909 Crore during 2011-12.

The Road Ahead

ONGC looks forward to become an integrated energy provider, with:

New Discoveries and fast track development

Equity Oil from Abroad

Downstream Value Additions & Forward Integration

Leveraging state-of-the art technology and global best practices

New Sources of Energy

Production from small and marginal fields

ONGC has taken structured initiatives to tap unconventional energy sources through unconventional gases like Coal Bed Methane (CBM), Underground Coal Gasification (UCG), Shale Gas and Gas Hydrates, or unconventional energy sources like wind, solar etc.

"ONGC Energy Centre Trust", a dedicated centre created by ONGC for holistic research in non-conventional energy sources, has taken up three projects viz., Thermo-chemical reactor for Hydrogen, Geo-bio Reactors and Fuel Cells. ONGC has already commissioned a 50 MW Wind Farm in Gujarat and plan is afoot to set up another 100 MW Wind Farm in Rajasthan. ONGC has also set up 3 Solar Thermal Engines at Solar Energy Centre, Ministry of New and Renewable Energy (MNRE) campus at Gurgaon.

1.2 RATIONALE OF THE STUDY

Capstone project is about to collect the consumer’s review towards the Watch. This project targets all the people in the society viz. rich people, middle class and poor people.

As a management students we have select this topic because we want to understand customer preference towards watches and to check the growth and size of market, market share in the world and in India and to find out the consumption of watch in India, major players in market and consumer satisfaction towards service quality.

Each and every product in market is required to be based on quality control. Customers always prefer such items at reasonable and competitive price.

Data collected by the survey is much more essential to form strong platform for products in the market. By personal meeting with the actual customers we could know people’s preference towards brands of. We will try to

find out about the choice of the people as well as what they are thinking about the products namely price, quality and accessibility.

1.3 OBJECTIVE OF THE STUDY

To make comparison of two years for a useful interpretation of financial statements.

To examine the profitability, short term & long term finance solvency, debt coverage of the company.

To determine the financial condition & financial performance of a firm. To make suggestions & recommendations for improving the financial position

of the company To practically apply the concept of ratio analysis. To analyses & calculate various types of ratios. To analyses & make interpretation of ratios.

1.4 DATA SOURCE AND METHODOLOGY

The data collected for the project was non verbal information regarding ratio

analysis of the organization. Methodology of the study can be classified into two

ie.

1] Primary data

2] Secondary data

Primary data entails the use of immediate data in determining the

survival of the market. The popular ways to collect primary data consist

of surveys, interviews and focus groups, which shows that direct

relationship between potential customers and the companies.

Primary data is more accommodating as it shows latest information.

Whereas secondary research is a means to reprocess and reuse

collected information as an indication for betterments of the service or

product. Both primary and secondary data are useful for businesses but

both may differ from each other in various aspects.

Secondary data is available effortlessly, rapidly and inexpensively.

Primary data :

The information about the organization is gathered from the website of the Company. Secondary data:

The secondary data collected-

The balance sheet as on 31st march of the year

2009-10 2010-11 2011-12 20112 -13

The methodology of this study has been adopted on the following basis:

Study of various journals, notes and books. Study through websites. Collection of primary and secondary data records of the organization. Analysis of the collected data for its application.

1.5 CHAPTERISATION SCHEME

1.6 LIMITATION OF THE STUDY

Due to confidentiality sum important information, which are essential for the project, could not be collected.

Sum of the information is lack of accuracy, due to which approximately values where used for the analysis. Hence, the result also reveals approximate values.

The time span for the project was very short, which itself act as constraint. Moreover, studying the guidelines and applying it practically within such a short time span was a task of great pressure.

Operating Profit & OPM

Operating Profit gives an indication of the current operational profitability of the business and allows a comparison of profitability between different companies after removing out expenses that can obscure how the company is really performing.

Interest cost depends on the management's choice of financing, tax can vary widely depending on acquisitions and losses in prior years, and depreciation and amortization policies may differ from company to company.

Interpretation:-

The above chart shows the operating profit and OPM of the company(in crore)

The operating profit & opm is not increasing continuously year by year.

In the year 2009, the standalone of profit is highest while in year 2010,the standalone of profit is lowest.

In the year 2012,cons opm is highest while in the year 2009 the cons opm is very lowest e and it can go into the negating

EBITDA, PBT & PAT

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. PBT stands for Profit Before Tax, and PAT stands for Profit After Tax.

The graph visually shows how the net profit of the company stand reduced due to the impact of Interest, Depreciation, and Tax.

Interpretation:-

The above chart shows the total Rs (in core) of EBITDA,PBT and PAT.

In the march 2011, the total Rs of EBITDA is very highest and in the march 2009 the rate of EBITDA is very low.

In March 2011, the Amt of PBT in highest while in every year excluded March 2011 in falls to negativity

In March 2011, the Amount of PAT is high and like PBT Essar – ONGC.

Total Assets & Asset Turnover Ratio

Total Assets is the sum of all assets, current and fixed. The asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. The higher the ratio indicates that the company is utilizing all its assets efficiently to generate sales. Companies with low profit margins tend to have high asset turnover.

Interpretation:-

The above chart shows the total assets in crore and total asset in crore and total assets turnover ratio

Total Assets is continuously increasing from the year 2009 to the year 2011

In 2012, it will increase in the year 2013, the total assets is very high.

In the year 2009, 2010 and 2011, the total assets turnover ratio is stable and in the year 2012 and 2013 it will increases.

Net Sales

Sales is the total amount of products or services sold by the company.

Interpretation:-

This chart is show that the net sales of the company. the net sales in march 2009-10 is 3600.in march 2011 it is increasing by 50000 in march 2012,it is increasing by 61000 while in march,2013,it is increasing

In this chart, we anal use that this net sales is increasing year by year

EBITDA

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization.

It gives an indication of the current operational profitability of the business and allows a comparison of profitability between different companies after removing out expenses that can obscure how the company is really performing.

Interpretation:-

The above chart is show the total earning before interest, taxes, depreciation and amortization.

The EBITDA in increase in from march 2009 to march 2011 but it was decrease in march 2012 and then increase in march 2013 the highest EBITDA in march 2011 while the lowest rate of EBITDA in march 2012.

Profit before Tax

Profit before tax deducts all expenses from revenue including interest expenses and operating expenses, excluding tax. Since taxes change every year, PBT gives investors a good idea about the company profits every year.

Interpretation:-

The above chart 3 hourse the amount of profit before tax in crore rs.

In this they are divided into two part standalone and consolidated

In march 2011, the Amount of standalone is very high and other. than march-2011 high and other then march-2011 it is go to the negative amount

In mar-2010, the consolidated is high and other than mar-2010 it is falls to negative amount.

Net worth

Net worth is the difference between a company's total assets and its total liabilities. It is also known as shareholder`s equity.

Interpretation:-

The above chart shows the networth in crore Rs. Of the company

In the year March-2011, the standalone of the networth is very high while in March-2013. The standalone of the networth is relatively low.

In mar-2010, the consolidated of the networth . Of the company is relatively high. While in march-2012 and mar-2013, the consolidated of networth is very minor.

Gross Block

Fixed assets are long-term tangible piece of property that the company owns and uses in the production of its income. Gross Block is the cost of fixed assets eg buildings, real estate, equipment, furniture etc not excluding the depreciation amount charged on it.

Interpretation:-

The above chart shows the gross block of the company and the gross block is the cost of fixed assets like building not excluding the depreciation amount charged on it.

The standalone of gross block of the company is increasing year to your from March-2009 to March-2013.

The consoled Acted of gross block of the company is stable inmar-2009 and march2010.and there are no consolidated of gross block in march-2011, march-2012 and march-2013

Dividend

Dividend is a payment made by a company to its shareholders usually as a distribution of profits. When a company makes profit it can either re-invest it in the business or it distributes it to its shareholders by way of dividends. The dividend payout ratio is the amount of dividends paid to shareholders relative to the amount of total net profit of a company.

A reduction in dividends paid is not appreciated by investors and usually the stock price moves down as this could point towards difficult times ahead for the company. On the other hand a stable dividend payout ratio indicates a solid dividend policy by the company's management.

Interpretation:-

The above chart is show the dividends of the company. This shows the net profit of equity dividend.

In March-2011, the net profit of equity dividend is very high and other than March-2010 and March-2011 all the years dividends is negative.

ONGC

Operating Profit & OPM

Operating Profit gives an indication of the current operational profitability of the business and allows a comparison of profitability between different companies after removing out expenses that can obscure how the company is really performing.

Interest cost depends on the management's choice of financing, tax can vary widely depending on acquisitions and losses in prior years, and depreciation and amortization policies may differ from company to company.

Interpretation:-

The above chart shows the operating profit and OPM of the company (in crore) ONGC.

The operating profit & OPM is not increasing continuously year by year.

In the year 2012, the standalone of profit is highest while in year 2009,the standalone of profit is lowest.

In the year 2012, cons opm is highest while in the year 2009 the cons opm is very lowest e and it can go into the negative.

EBITDA, PBT & PAT

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. PBT stands for Profit Before Tax, and PAT stands for Profit After Tax.

The graph visually shows how the net profit of the company stand reduced due to the impact of Interest, Depreciation, and Tax.

Interpretation:-

The above chart shows the total Rs (in crore) of EBITDA,PBT and PAT.

In the march 2012,the total Rs of EBITDA is very highest and in the march 2009 the rate of EBITDA is very low.

In March 2012, the Amt of PBT in highest while in every year excluded march 2019 in falls to negativity

In march 2012 , the Amount of PAT is high And in march-2009 the amount of PAT is relatively low.

Total Assets & Asset Turnover Ratio

Total Assets is the sum of all assets, current and fixed. The asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. The higher the ratio indicates that the company is utilizing all its assets efficiently to generate sales. Companies with low profit margins tend to have high asset turnover.

Interpretation:-

The above chart shows the total assets in crore and total asset in crore and total assets turnover ratio

Total Assets does not increasing continuously from the year 2009 to the year 2011

In the year 2013 the total asset is comparatively very high and in the year 2009 the total assets is comparatively very low.

In the year 2009, the total assets turnover ratio is high and then it is increasing year by year

Net Sales

Sales is the total amount of products or services sold by the company.

Interpretation:-

This chart is show that the net sales of the ONGC.

The net sales in standalone are high in march-2013 and in march-2010 the standalone of net sales is comparatively low.

The net sales of consolidated is comparatively high in march-2013.

While in march-2010 it is comparatively low.

EBITDA

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization.

It gives an indication of the current operational profitability of the business and allows a comparison of profitability between different companies after removing out expenses that can obscure how the company is really performing.

Interpretation:-

The above chart is show the total earnings before interest, taxes, depreciation and amortization.

The EBITDA in increase ing from march 2009 to march 2011 but it was decrease in march 2012 and than increase in march 2013 the highest EBITDA in march 2012 while the lowest rate of EBITDA in march 2009.

Profit before Tax

Profit before tax deducts all expenses from revenue including interest expenses and operating expenses, excluding tax. Since taxes change every year, PBT gives investors a good idea about the company profits every year.

Interpretation:-

The above chart shows the amont of profit before tax in crore.

In this they are dividend into two part: standalone and consolidated

In march 2012, the Amount of standalone is very high and in march-2009 the amount of standalone of profit before tax is comparatively low.

In mar-2012, the amount of consolidated is high and in march- 2010 the amount of consolidated is relatively low compare to other.

Net worth

Net worth is the difference between a company's total assets and its total liabilities. It is also known as shareholder`s equity.

Interpretation:-

The above chart shows the networth in crore Rs. Of the company ONGC.

In the year March-2013, the standalone of the networth is very high while in March-2009. The standalone of the networth is relatively low.

The standalone and consolidated of networth is increasing year by year.

In mar-2013, the consolidated of the networth. Of the company is relatively high. while in march-2009 the conseolidated of networth is comparatively low

Gross Block

Fixed assets are long-term tangible piece of property that the company owns and uses in the production of its income. Gross Block is the cost of fixed assets eg buildings, real estate, equipment, furniture etc not excluding the depreciation amount charged on it.

Interpretation:-

The above chart shows the gross block of the company and the gross block is the cost of fixed assets like building not excluding the depreciation amount charged on it.

The standalone and consolidated both of gross block of the company is increasing year to year from March-2009 to March-2013.

Dividend

Dividend is a payment made by a company to its shareholders usually as a distribution of profits. When a company makes profit it can either re-invest it in the business or it distributes it to its shareholders by way of dividends. The dividend payout ratio is the amount of dividends paid to shareholders relative to the amount of total net profit of a company.

A reduction in dividends paid is not appreciated by investors and usually the stock price moves down as this could point towards difficult times ahead for the company. On the other hand a stable dividend payout ratio indicates a solid dividend policy by the company's management

Interpretation:-

The above chart is show the dividend of the company ONGC. This shows the net profit of equity dividend.

In March-2012, the net profit of equity dividens is very high and in march-2009 the net profit of equity dividend is relatively low.

In march-2010 the percentage of equity dividend is very high and in march-2013 the percentage of euity dividend is relatively low.

3.1 INTRODUCTION ON RATIO ANALYSIS :

Ratio analysis is a power full tool of financial analysis based on ratio. A ratio is defined “the indicate quotient up to mathematical expression.” In financial analysis ratio is used as a benchmark evaluating the financial position and performance of a firm. The absolute accounting figure reported in the financial statements do not provide as mining full understanding of the financial position of a firm, but well expressed in terms of related figure, it yields significant inference. Ratio analyses reflect a quantitative relationship that helps to form qualitative judgment.

DEFINITION:

“Ratio analysis is a systematic use of ratio to interpret of the financial

statement so that the strength and weakness of the firm, it is a historical

performance and it current financial condition can be determine.” --- Khan & Jain.

Ratio analysis involves three steps that are as follows:

1. Selection of data, which is relevant to the objective of analysis and

calculation of the appropriate ratio.

2. Comparison of the past and present ratio of the same firm and/or with the

industry standard.

3. Evaluation and drawing inferences.

3.2 CLASSIFICATION OF RATIOS :

1] LIQUIDITY RATIOThis ratio checks the ability of a firm to fulfill its short term obligations and reflect short term financial strength or solvency. This ratio is also termed as ‘Working capital’ or ‘short term solvency’. The most common ratio which indicates the extent of liquidity are :

Current ratio Quick ratio long-term Debt equity ratio

2] PROFITABILTY RATIO The profitability of a firm can be measured by its profitability ratios. It can be determined on the basis of sales or investment. It reflects the final result of business operations. This ratio is calculated to measure the operating efficiency of the company. Following are the ratios:

Net Profit Gross Profit Return on Net worth Return on Capital employed Return on Assets Revaluations Return on Long-term Funds

1] LIQUIDITY RATIO

2] PROFITABILITY

RATIO

3] SOLVENCY RATIO

4] PROFIT AND LOSS ACCOUNT

RATIO

5] TURNOVER RATIO

3] SOLVENCY RATIO This is calculated to judge the long-term financial position of the firm. These ratios indicate mix of fund provided by owners and lenders. These ratios indicate the extent to which the interest of the person entitled to get a fixed return or a scheduled repayment s per the agreed term, are safe. The higher the cover the better it is. Following are the ratios:

Debt equity ratio Long-term debt equity ratio Current ratio Quick ratio

4] PROFIT AND LOSS ACCOUNT RATIOthis ratio is the another type of profitability ratio related to sales. It is computed by dividing expenses by sales. Expenses include:

Material cost composition Raw material consumed Selling distribution cost composition Composition of total sales

5] TURNOVER RATIO these ratios are concerned with measuring the efficiency in assets management. The turnover with which assets are managed/ used is reflected in the speed and rapidity with which they are converted into sales. Thus, the turnover ratio are the taste of relationship between sales/cost of goods sold and assets. The most common ratio which indicate the efficiency of the business are as follows.

Inventory turnover ratio

Working capital turnover ratio

Fixed assets turnover ratio

Total assets turnover ratio

Debtors turnover ratio

Investment turnover ratio

3.3 OBJECTIVES OF RATIO ANALYSIS :

1. To help in forecasting: - Financial manager for future financial planning can use the ratio. Ratio calculated for a number of your work as a guide for the future.

2. To help to control: - it is a very useful in controlling the areas of inefficiencies or weakness.

3. To help in efficiency appraisal: - the ratios are the scale of comparison; by conducting inter-firm and intra-firm comparison efficiency of the firm can be appraised.

4. To help in evaluation of financial position.

3.4 NEED AND IMPORTANACE OF RATIO ANALYSIS :

Ratio analysis is an important tool for analyzing the company's financial performance. The following are the important advantages of the accounting ratios.

1. Analyzing Financial Statements

Ratio analysis is an important technique of financial statement analysis. Accounting ratios are useful for understanding the financial position of the company. Different users such as investors, management. bankers and creditors use the ratio to analyze the financial situation of the company for their decision making purpose.

2. Judging Efficiency

Accounting ratios are important for judging the company's efficiency in terms of its operations and management. They help judge how well the company has been able to utilize its assets and earn profits.

3. Locating Weakness

Accounting ratios can also be used in locating weakness of the company's operations even though its overall performance may be quite good. Management can then pay attention to the weakness and take remedial measures to overcome them.

4. Formulating Plans

Although accounting ratios are used to analyze the company's past financial performance, they can also be used to establish future trends of its financial performance. As a result, they help formulate the company's future plans.

5. Comparing Performance

It is essential for a company to know how well it is performing over the years and as compared to the other firms of the similar nature. Besides, it is also

important to know how well its different divisions are performing among themselves in different years. Ratio analysis facilitates such comparison.

3.5 ADVANTAGES OF RATIO ANALYSIS :

1) SIMPLIFY THE UNDERSTANDING IF FINANCIAL STATEMENT— Ratios simplify the comprehension of financial statements. The ,financial statements is more easily understood and interpreted with the help of ratio analysis.

2) HELPFUL IN COMPARISON-- Ratios facilitate inter departmental or inter firm comparison. The comparative analysis can be possible between the industry average ratio and the ratio of each business unit. It can also be used to compare the records of a particular year with that of different financial year.

3) SHORT TERM LIQUIDITY POSITION-- Liquidity ratios measure the firm’s ability to meet current obligations. Thus, it can be ascertained whether the firm will be able to maintain its short term maturing obligations.

4) LONG TERM SOLVENCY POSITION-- Long term solvency position can also be measured by the application of leverage or profitability ratios. Leverage ratios show the proportions of debt and equity in financing the firm’s assets.

5) FUTURE PLAN OF ACTION-- Ratios help the management to prepare budgets, to formulate policy and to prepare the future course of action.

6) EFFICIENCY OF MANAGEMENT-- Profitability ratios measures overall performance and effectiveness of the firm. They help to identify the efficiency of management and utilization of assets.

7) INVESTMENT DECISIONS-- At times, the investment decisions are based on the condition revealed by certain ratios. Ratios thus may serve as guide system to crucial investment decisions.

3.6 LIMITATION OF RATIO ANALYSIS :

1) IGNORES QUALITATIVE FACTORS-- Ratio analysis is a quantitative measurement of the performance of the business. It ignores the qualitative side of the business however important may be.

2) PRICE LEVEL CHANGES -- The changes in price level makes the interpretation of the ratios invalid. Thus, change in price distorts the comparison over a period of years.

3) MAY MISLEAD-- Ratios may be misleading if an analyst does not know the soundness of figures from which they are computed.

4) PREDICTING FUTURE NOT ALWAYS POSSIBLE-- Ratios are compared on the basis of past results. It does not help to predict future helps since the business policies are constantly changing.

5) ABSENCE OF STANDARD UNIVERSALLY ACCEPTED TERMINOLOGY-- There are certain ratios where there are no universally accepted terminology. Thus interpretation would be different for these firms.

6) DIFFERENT ACCOUNT POLICIES MAKES COMPARISON DIFFICULT-- Reliability of ratios facilitate inter departmental or inter firm comparison. However ,different accounting policies may render the comparison incomplete, inadequate and inconclusive.

7) ABILITY OF THE ANALYST AND PERSONAL BIAS-- The interpretation of the same ratio may be different for different analyst since accounting is not an exact science. Personal bias may also affect the analysis of the ratios.

DATA ANALYSIS & INTERPRETATION

1] LIQUIDITY RATIOS

1) CURRENT RATIO = This ratio indicates the solvency of the business i.eAbility to meet the liabilities of the business as and when they fall due, It indicates how much current assets are there as against each rupee of current liabilities.

CURRENT RATIO= CURRENT ASSETS CURRENT LIABILTIES

Interpretation:-

2009 2010 2011 2012

0.620000000000007

0.610000000000001

0.820000000000001

1.07

1.451.39

1.17 1.12999999999999

ESSAR ONGC

YearESSAR ONGC

2009 0.62 1.452010 0.61 1.392011 0.82 1.172012 1.07 1.13

The above chart shows the current ratio of Essar oil and ONGC Company from the year 2009 to the year 2013. In the year 2012, the current ratio of Essar company is relatively high with compare to others and in the year 2010 the current ratio of Essar company is relatively low. In the year 2009, the current ratio of ONGC is relatively high with compare to others and in the year 2012 the current ratio of ONGC company is relatively low with compare to others.

2) QUICK RATIO = It is measurement of a firm’s ability to convert its current assets quickly into cash in order to meet its current liabilities.

QUICK RATIO = CURRENT ASSETS – STOCK

CURRENT LIABILITIES

 ESSAR ONGC

2009 0.43 1.272010 0.4 1.222011 0.53 1.082012 0.45 1.22

2009 2010 2011 2012

0.43 0.4

0.530.45

1.271.22

1.08

1.22

ESSAR ONGC

Interpretation:-

The above chart shows the quick ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2011, the quick ratio of Essar Company is relatively high with compare to others and in the year 2010 the current ratio of Essar company is relatively low.

In the year 2009, the quick ratio of ONGC is relatively high with compare to others and in the year 2011 the current ratio of ONGC Company is relatively low with compare to others

3) LONG TERM DEBT EQUITY RATIO = This ratio is the ratio of marketable securities divided by the current liabilities.

LONG TERM DEBT EQUITY RATIO

 ESSAR ONGC

2009 2.48 0.192010 2.46 0.22011 1.65  2012 4.15  

2009 2010 2011 2012

2.48 2.46

1.65

4.15

0.19 0.2

ESSAR ONGC

Interpretation:-

The above chart shows the long term debt equity ratio of Essar oil and ONGC Company from the year 2009 to the year 2012.

In the year 2012, the long term debt equity ratio of Essar Company is relatively high with compare to others and in the year 2011 the long term debt equity ratio of Essar Company is relatively low.

In the year 2010, the long term debt equity ratio of ONGC is relatively high with compare to others and in the year 2009 the long term debt equity ratio of ONGC Company is relatively low with compare to others.

2] PROFITABILITY

1) NET PROFIT RATIO = this ratio is the overall measure of the firm’s ability to turn each rupee sales into Net profit. If the net margin is inadequate, the firm will fail to achieve satisfactory return on share holder funds. This ratio also indicates the firm’s capacity to with stand adverse economic conditions

 ESSAR ONGC

2009 -1.34 23.52010 0.07 26.352011 1.35 26.372012 -2.13 31.02

2009 2010 2011 2012-1.34

0.071.35

-2.13

23.5

26.35 26.37

31.02

ESSAR ONGC

Interpretation:-

The above chart shows the net profit ratio of Essar oil and ONGC Company from the year 2009 to the year 2012.

In the year 2011, the net profit ratio of Essar company is relatively high with compare to others and in the year 2009 the net profit ratio of Essar company is relatively low

In the year 2012, the net profit ratio of ONGC is relatively high with compare to others and in the year 2009 the net profit ratio of ONGC company is relatively low with compare to others.

2) GROSS PROFIT RATIO = Gross profit ratio show profit relative to sales after the deduction of production cost. A high gross profit margin relative to industry average implies that the firm is able to produce at relatively lower cost. Where as a low gross profit margin may reflect higher cost of goods sold

 ESSAR ONGC

2009 4.36 43.582010 0.9 53.872011 3.56 47.582012 1.53 50.22

Interpretation:-

2009 2010 2011 2012

4.360.9

3.561.53

43.58

53.87

47.5850.22

ESSAR ONGC

The above chart shows the gross profit ratio of Essar oil and ONGC Company from the year 2009 to the year 2012.

In the year 2010, the gross profit ratio of Essar company is relatively high with compare to others and in the year 2009 the gross profit ratio of Essar company is relatively low.

In the year 2009, the gross profit ratio of ONGC is relatively high with compare to others and in the year 2010 the gross profit ratio of ONGC company is relatively low with compare to others.

3) RETURN ON NET WORTH =The profitability of the firm is measured by establishing relation of net profit with the Total Assets of the organization. This ratio indicates the efficiency of utilization of assets in generating revenue.

 ESSAR ONGC

2009 -14.7 20.652010 0.83 19.392011 10 19.42012 -36.51 22.24

Interpretation:-

2009 2010 2011 2012

-14.7

0.830000000000001

10

-36.51

20.65 19.39 19.422.24

essar ongc

The above chart shows the return on net worth ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2011, the return on net worth ratio of Essar Company is relatively high with compare to others and in the year 2012 the return on net worth ratio of Essar Company is relatively low.

In the year 2012, the return on net worth ratio of ONGC is relatively high with compare to others and in the year 2010 the return on net worth ratio of ONGC Company is relatively low with compare to others.

4) RETURN ON CAPITAL EMPLOYED = This is a percentage of profit to capital employed. It is the only measure, which can be said to show the overall satisfactory performance of an under taking from the stand point of profitability. It enables the management to show whether the funds entrusted to it have been properly used or not. Higher the ratios better the result.

 ESSAR ONGC

2009 13.28 34.292010 3.64 34.542011 9.32 26.382012 6.85 28.56

2009 2010 2011 2012

13.28

3.64

9.326.85

34.29 34.54

26.3828.56

ESSAR ONGC

Interpretation:-

The above chart shows the return on capital employed of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2009, the return on capital employed ratio of Essar Company is relatively high with compare to others and in the year 2010 the return on capital employed ratio of Essar Company is relatively low.

In the year 2010, the return on capital employed ratio of ONGC is relatively high with compare to others and in the year 2011 the ratio of ONGC Company is relatively low with compare to others.

5) RETURN ON ASSETS REVALUATION =A return on shareholder equity is calculated to see the profitability of owner’s investment. Return on equity indicates how well the firm has used the resources of owners

 ESSAR ONGC

2009 29.05365.0

7

2010 29.3404.1

4

2011 47.87113.9

7

2012 25.47132.0

3

2009 2010 2011 2012

29.05 29.347.87

25.47

365.07

404.14

113.97132.03

ESSAR ONGC

Interpretation:-

The above chart shows the return on assets revaluation of Essar oil and ONGC Company from the year 2009 to the year 2012.

In the year 2011, the return on assets revaluation ratio of Essar Company is relatively high with compare to others and in the year 2012 the return on assets revaluation ratio of Essar Company is relatively low.

In the year 2010, the return on assets revaluation ratio of ONGC is relatively high with compare to others and in the year 2011 the return on assets revaluation ratio of ONGC company is relatively low with compare to others.

6) RETURN ON LONG-TERM FUNDS = It signifies how effectively the shareholders funds are utilized .This ratio helps in the comparison of performance. Higher ratio is favorable & lower is unfavorable.

 ESSAR ONGC

2009 14.89 34.292010 4.5 34.542011 11.35 28.382012 6.85 29.69

2009 2010 2011 2012

14.89

4.5

11.35

6.85

34.29 34.54

28.3829.69

ESSAR ONGC

Interpretation:-

The above chart shows the return on long term funds of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2009, the return on long term fund ratio of Essar company is relatively high with compare to others and in the year 2010 the return on long term fund ratio of Essar company is relatively low.

In the year 2010, the return on long term fund ratio of ONGC is relatively high with compare to others and in the year 2011 the return on long term fund ratio of ONGC company is relatively low with compare to others.

\

3] SOLVENCY RATIOS

1) DEBT EQUITY RATIO =This ratio establishes the relationship between owner’s fund and external debts or there relationship between proprietor’s fund and borrowed capital. It reveals the claim of shareholders and creditors against the assets of the firm.

 ESSAR ONGC

2009 2.87 0.22010 2.94 0.192011 2.23  2012 4.55 0.04

2009 2010 2011 2012

2.87 2.94

2.23

4.55

0.2 0.190.04

ESSAR ONGC

Interpretation:-

The above chart shows the debt equity ratio of Essar oil and ONGC Company from the year 2009 to the year 2012.

In the year 2012, the debt equity ratio of Essar company is relatively high with compare to others and in the year 2011 the debt equity ratio of Essar company is relatively low.

In the year 2009, the debt equity ratio of ONGC is relatively high with compare to others and in the year 2010 the debt equity ratio of ONGC company is relatively low with compare to others.

2) LONG TERM DEBT EQUITY RATIO = This ratio is the ratio of marketable securities divided by the current liabilities.

 ESSAR ONGC

2009 2.48 0.22010 2.46 0.192011 1.65  2012 4.15  

2009 2010 2011 2012

2.48 2.46

1.65

4.15

0.2 0.19

ESSAR ONGC

Interpretation:-

The above chart shows the long term debt equity ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2012, the long term debt equity ratio of Essar company is relatively high with compare to others and in the year 2011 the long term debt equity ratio of Essar company is relatively low.

In the year 2009, the long term debt equity ratio of ONGC is relatively high with compare to others and in the year 2010 the long term debt equity ratio of ONGC company is relatively low with compare to others.

3) CURRENT RATIO = This ratio indicates the solvency of the business i.eAbility to meet the liabilities of the business as and when they fall due. It indicates how much current assets are there as against each rupee of current liabilities.

CURRENT RATIO= CURRENT ASSETS CURRENT LIABILTIES

 ESSAR ONGC

2009 0.62 1.452010 0.61 1.392011 0.82 1.172012 1.07 1.13

2009 2010 2011 2012

0.620000000000006

0.610000000000001

0.820000000000001

1.07

1.451.39

1.17 1.12999999999999

ESSAR ONGC

Interpretation:-

The above chart shows the current ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2012, the current ratio of Essar company is relatively high with compare to others and in the year 2010 the current ratio of Essar company is relatively low.

In the year 2009, the current ratio of ONGC is relatively high with compare to others and in the year 2012 the current ratio of ONGC company is relatively low with compare to others

4) QUICK RATIO = It is measurement of a firm’s ability to convert its current assets quickly into cash in order to meet its current liabilities.

 ESSAR ONGC

2009 0.43 1.272010 0.4 1.222011 0.53 1.08

2012 0.45 1.22

2009 2010 2011 2012

0.43 0.4

0.530.45

1.271.22

1.08

1.22

ESSAR ONGC

Interpretation:-

The above chart shows the quick ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2011, the quick ratio of Essar company is relatively high with compare to others and in the year 2010 the quick ratio of Essar company is relatively low.

In the year 2009, the quick ratio of ONGC is relatively high with compare to others and in the year 2011 the quick ratio of ONGC company is relatively low with compare to others.

4] PROFIT AND LOSS ACCOUNT RATIOS

1) MATERIAL COST COMPOSITION = This ratio indicates the impact of indirect expenses on sales or profit. Higher the ratio lesser will be the margin of profit.

  ESSA ONGC

R2009 87.29 17.032010 92.81 4.032011 92.2 0.922012 91.84 0.85

2009 2010 2011 2012

87.2992.81 92.2 91.84

17.03

4.030.92

0.850000000000001

ESSAR ONGC

Interpretation:-

The above chart shows the material cost composition of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2010, the material cost composition of Essar company is relatively high with compare to others and in the year 2009 the material cost composition of Essar company is relatively low.

In the year 2009, the material cost composition of ONGC is relatively high with compare to others and in the year 2012 the material cost composition of ONGC company is relatively low with compare to others.

2) RAW MATERIALS CONSUMED = This ratio indicates the impact of selling expenses particularly expenses on (Advertisement) on sales. Higher the ratio lesser will be the margin of profit.

 ESSAR ONGC

2009 100 17.62010 99.99 20.132011 91.22 23.342012 81.25 27.05

2009 2010 2011 2012

100 99.99

91.22

81.25

17.6 20.13 23.3427.05

ESSAR ONGC

Interpretation:-

The above chart shows the raw material consumed of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2009, the raw material consumed ratio of Essar company is relatively high with compare to others and in the year 2012 the raw material consumed ratio of Essar company is relatively low.

In the year 2012, the raw material consumed ratio of ONGC is relatively high with compare to others and in the year 2009 the raw material consumed ratio of ONGC company is relatively low with compare to others.

3) SELLING DISTRIBUTION COST COMPOSITION = Selling distribution relating to the main operations or business of the firm are calledselling distribution cost composition.

 ESSAR ONGC

2009 2.3 10.942010 3.16 10.832011 2.73  2012 2.32  

2009 2010 2011 2012

2.33.16

2.732.32

10.94 10.83

ESSAR ONGC

Interpretation:-

The above chart shows the selling distribution cost composition of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2010, the selling distribution cost composition ratio of Essar company is relatively high with compare to others and in the year 2009 the selling distribution cost composition ratio of Essar company is relatively low.

In the year 2009, the selling distribution cost composition ratio of ONGC is relatively high with compare to others and in the year 2010 the selling distribution cost composition ratio of ONGC company is relatively low with compare to other.

4) COMPOSITION OF TOTAL SALES = This ratio includes interest and all finance charges

 ESSAR ONGC

2009 32.21 5.362010 24.12 7.612011 32.9 6.892012 33.34 8.25

2009 2010 2011 2012

32.21

24.12

32.9 33.34

5.367.61 6.89

8.25

ESSAR ONGC

Interpretation:-

The above chart shows the composition of total sales ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2012, the composition of total sales ratio of Essar company is relatively high with compare to others and in the year 2010 the composition of total sales ratio of Essar company is relatively low.

In the year 2012, the composition of total sales ratio of ONGC is relatively high with compare to others and in the year 2009 the composition of total sales ratio of ONGC company is relatively low with compare to others.

5)TURNOVER RATIOS

1) INVENTORY TURNOVER RATIO = This ratio indicates the number of times stock is replaced during the year. It measures the relationship between the cost of goods sold (COGS) & the stock level

2009 2010 2011 2012

20.25

11.3 9.7 8.26

111.98

87.82

16.59 14.81

ESSAR ONGC

Interpretation:-

The above chart shows the inventory turnover ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2009, the inventory turnover ratio of Essar company is relatively high with compare to others and in the year 2012 the inventory turnover ratio of Essar company is relatively low.

In the year 2009, the inventory turnover ratio of ONGC is relatively high with compare to others and in the year 2012 the inventory turnover ratio of ONGC company is relatively low with compare to others.

 ESSAR ONGC

2009 20.25111.9

82010 11.3 87.822011 9.7 16.592012 8.26 14.81

2) WORKING CAPITAL TURNOVER RATIO = This ratio measures the number of times the working capital is turned over during the year. In a way this ratio also throws light on operating cycle (conversion of current assets into cash) of the company. A low ratio indicates slow moving operating cycle where as a high level implies that the company’s current assets are utilized efficiently

 ESSAR ONGC

2009 -9.53144.5

1

2010 -17.4151.4

82011 6.12 46.432012 -37.67 80.99

Interpretation:-

The above chart shows the working capital turnover ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

2009 2010 2011 2012-9.53

-17.4

6.12

-37.67

144.51151.48

46.43

80.99

ESSAR ONGC

In the year 2010, the working capital turnover ratio of Essar company is relatively high with compare to others and in the year 2011 the working capital turnover ratio of Essar company is relatively low.

In the year 2011, the working capital turnover ratio of ONGC is relatively high with compare to others and in the year 2012 the working capital turnover ratio of ONGC company is relatively low with compare to others.

3) FIXED ASSETS TURNOVER RATIO = This ratio signifies the number of time to fixed assets are rotated or used in business. A high ratio indicates that fixed assets are contributing quite substantially in making sales, while low ratio indicates that fixed assets are not being used efficiently

 ESSAR ONGC

2009 2.86 1.052010 2.71 0.852011 3.44 0.852012 2.8 0.85

.

2009 2010 2011 2012

2.862.71

3.44

2.8

1.05 0.850000000000001

0.850000000000001

0.850000000000001

ESSAR ONGC

Interpretation:-

The above chart shows the fixed assets turnover ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2010, the fixed assets turnover ratio of Essar company is relatively high with compare to others and in the year 2009 the fixed assets turnover ratio of Essar company is relatively low.

In the year 2009, the fixed assets turnover ratio of ONGC is relatively high with compare to others and in the year 2010, 2011 and the year 2012 the fixed assets turnover ratio of ONGC company is relatively low with compare to others.

4) TOTAL ASSETS TURNOVER RATIO = This ratio is the ratio of cost of good sold divided be the total capital employed

 ESSAR ONGC

2009 2.81 0.682010 2.49 0.582011 2.28 0.72012 3.06 0.65

2009 2010 2011 2012

2.81

2.492.28

3.06

0.68 0.58

0.700000000000001

0.650000000000007

ESSAR ONGC

Interpretation:-

The above chart shows the total assets turnover ratio of Essar oil and ONGC company from the year 2009 to the year 2012.

In the year 2012, the total assets turnover ratio of Essar company is relatively high with compare to others and in the year 2011 the total assets turnover ratio of Essar company is relatively low.

In the year 2011, the total assets turnover ratio of ONGC is relatively high with compare to others and in the year 2010 the total assets turnover ratio of ONGC company is relatively low with compare to others.

5) DEBTORS TURNOVER RATIO = This ratio indicates the efficiency of the staff in-charge of the collection of bad debts . Higher the value of the debtors turnover, the more efficient is the management of receivables.

 ESSAR ONGC

2009 38.71 15.162010 23.33 16.872011 21.77 19.382012 18.77 15.02

2009 2010 2011 2012

38.71

23.3321.77

18.77

15.1616.87

19.38

15.02

ESSAR ONGC

Interpretation:-

The above chart shows the debtors turnover ratio of Essar oil and ONGC Company from the year 2009 to the year 2012.

In the year 2009, the debtor’s turnover ratio of Essar company is relatively high with compare to others and in the year 2012 the debtors turnover ratio of Essar company is relatively low.

In the year 2011, the debtor’s turnover ratio of ONGC is relatively high with compare to others and in the year 2009 the debtor’s turnover ratio of ONGC company is relatively low with compare to others.

Balance sheet of Essar oil

Mar '13 Mar '12 Mar '11 Mar '10 Mar '0912 mths 12 mths 12 mths 12 mths 12 mths

Sources Of FundsTotal Share Capital 1,382.27 1,382.27 1,382.27 1,218.13 1,218.13Equity Share Capital 1,382.27 1,382.27 1,382.27 1,218.13 1,218.13Share Application Money 0.00 0.00 0.00 1,153.21 91.03Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves -275.44 2,138.47 5,155.63 2,302.31 2,272.85Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 1,106.83 3,520.74 6,537.90 4,673.65 3,582.01Secured Loans 23,652.75 0.00 12,274.42 9,470.59 9,419.15Unsecured Loans 66.19 16,021.17 2,272.51 883.14 612.56Total Debt 23,718.94 16,021.17 14,546.93 10,353.73 10,031.71Total Liabilities 24,825.77 19,541.91 21,084.83 15,027.38 13,613.72

Mar '13 Mar '12 Mar '11 Mar '10 Mar '0912 mths 12 mths 12 mths 12 mths 12 mths

Application Of FundsGross Block 25,558.02 21,319.92 13,974.59 13,802.50 13,364.74Less: Accum. Depreciation 4,283.87 0.00 2,230.50 1,493.15 758.90Net Block 21,274.15 21,319.92 11,744.09 12,309.35 12,605.84Capital Work in Progress 2,610.38 1,760.47 8,423.04 4,318.75 1,913.90Investments 103.00 103.00 103.00 203.00 103.05Inventories 10,588.37 7,681.67 5,749.14 3,969.44 2,250.93Sundry Debtors 4,716.49 3,996.93 2,423.64 2,095.39 1,165.35Cash and Bank Balance 2,430.66 2,060.94 94.89 117.09 155.44Total Current Assets 17,735.52 13,739.54 8,267.67 6,181.92 3,571.72Loans and Advances 5,842.80 3,166.70 2,162.43 1,725.60 2,865.17Fixed Deposits 0.00 0.00 2,863.77 1,233.66 1,019.19Total CA, Loans & Advances 23,578.32 16,906.24 13,293.87 9,141.18 7,456.08Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 22,694.88 20,516.09 12,282.19 10,922.09 8,439.81Provisions 45.20 31.63 196.98 22.81 25.34Total CL & Provisions 22,740.08 20,547.72 12,479.17 10,944.90 8,465.15Net Current Assets 838.24 -3,641.48 814.70 -1,803.72 -1,009.07Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 24,825.77 19,541.91 21,084.83 15,027.38 13,613.72

Contingent Liabilities 2,684.25 2,508.94 2,887.88 22,091.84 6,430.35Book Value (Rs) 8.10 25.47 47.87 29.30 29.05

P&L Account

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

  12 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 88,578.1

263,427.7

753,119.1

042,401.6

841,855.9

7Excise Duty 0.00 3,703.78 5,226.72 5,086.27 3,749.62Net Sales 88,578.1

259,723.9

947,892.3

837,315.4

138,106.3

5Other Income 497.30 -812.70 339.17 871.93 -1,117.35Stock Adjustments

236.88 988.10 1,157.64 310.81 -991.75

Total Income 89,312.30

59,899.39

49,389.19

38,498.15

35,997.25

ExpenditureRaw Materials 82,260.1

354,851.9

744,158.0

334,633.5

833,265.5

6Power & Fuel Cost 1,113.50 0.00 504.50 202.37 159.31Employee Cost 185.66 134.56 119.67 97.50 96.88Other Manufacturing Expenses

575.51 0.00 174.90 174.11 182.79

Selling and Admin Expenses

0.00 1,387.36 1,502.74 1,345.34 1,090.10

Miscellaneous Expenses

2,934.36 2,662.20 135.03 107.43 0.00

Preoperative Exp Capitalised

0.00 0.00 0.00 0.00 0.00

Total Expenses 87,069.16

59,036.09

46,594.87

36,560.33

34,794.64

Cash flow

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

  12 mths

12 mths

12 mths

12 mths

12 mths

Net Profit Before Tax -1180.4

4

-48.02 828.39 28.58 -543.72

Net Cash From Operating Activities

-791.15 476.80 1218.63

688.65 1920.43

Net Cash (used in)/fromInvesting Activities

-2137.2

8

-1343.7

6

-5756.0

5

-2075.4

7

-2002.2

2Net Cash (used in)/from Financing Activities

2828.98

1184.31

4484.21

1411.10

0.01

Net (decrease)/increase In Cash and Cash Equivalents

-99.45 317.35 -53.21 24.28 -81.78

Opening Cash & Cash Equivalents

440.16 122.81 214.98 190.70 269.59

Closing Cash & Cash Equivalents

340.71 440.16 161.77 214.98 187.81

Balance sheet of ongc

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mthsSources Of FundsTotal Share Capital 4,277.76 4,277.76 4,277.76 2,138.89 2,138.89Equity Share Capital 4,277.76 4,277.76 4,277.76 2,138.89 2,138.89Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 120,175.46 108,678.97 93,226.6

785,143.72 76,596.53

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 124,453.22 112,956.73 97,504.4

387,282.61 78,735.42

Secured Loans 0.00 4,500.00 0.00 0.00 0.00Unsecured Loans 0.00 0.00 0.00 16,405.64 16,035.70Total Debt 0.00 4,500.00 0.00 16,405.64 16,035.70Total Liabilities 124,453.22 117,456.73 97,504.4

3103,688.25 94,771.12

Mar '13 Mar '12 Mar '11 Mar '10 Mar '0912 mths 12 mths 12 mths 12 mths 12 mths

Application Of FundsGross Block 96,463.86 90,019.55 80,501.5

671,553.78 61,355.61

Less: Accum. Depreciation

68,980.39 68,341.41 61,862.02

55,905.28 50,941.23

Net Block 27,483.47 21,678.14 18,639.54

15,648.50 10,414.38

Capital Work in Progress 14,415.37 73,258.12 65,299.77

56,073.25 52,923.19

Investments 9,173.05 5,216.24 5,182.80 5,772.03 5,090.32Inventories 5,704.39 5,165.44 4,118.98 4,678.57 4,060.67Sundry Debtors 6,863.72 6,194.82 3,994.68 3,058.64 4,083.80Cash and Bank Balance 13,218.59 20,124.57 14,481.0

9282.85 161.48

Total Current Assets 25,786.70 31,484.83 22,594.75

8,020.06 8,305.95

Loans and Advances 101,268.07 40,090.29 36,300.55

63,721.90 55,964.02

Fixed Deposits 0.00 0.00 0.00 17,948.18 18,934.74Total CA, Loans & Advances

127,054.77 71,575.12 58,895.30

89,690.14 83,204.71

Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 30,575.81 30,715.22 28,763.6

927,244.53 26,854.11

Provisions 23,097.63 23,555.65 21,749.29

37,092.46 30,657.98

Total CL & Provisions 53,673.44 54,270.87 50,512.98

64,336.99 57,512.09

Net Current Assets 73,381.33 17,304.25 8,382.32 25,353.15 25,692.62Miscellaneous Expenses 0.00 0.00 0.00 841.32 650.61Total Assets 124,453.22 117,456.75 97,504.4

3103,688.25 94,771.12

Contingent Liabilities 35,810.89 27,810.71 20,465.03

39,178.54 36,024.57

Book Value (Rs) 145.47 132.03 113.97 408.08 368.12

P&L account

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

  12 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 83,005.3

376,515.09 68,338.92 60,470.18 64,342.28

Excise Duty 0.00 0.00 0.00 218.41 338.29Net Sales 83,005.3

376,515.09 68,338.92 60,251.77 64,003.99

Other Income 5,436.74 7,593.53 3,406.85 3,615.96 4,085.59Stock Adjustments 0.00 91.34 12.91 118.04 81.10Total Income 88,442.0

784,199.96 71,758.68 63,985.77 68,170.68

ExpenditureRaw Materials 4,199.15 656.14 635.30 2,431.88 10,905.51Power & Fuel Cost 334.96 157.86 142.57 260.38 270.79Employee Cost 10,330.1

71,309.48 1,303.13 5,618.16 4,536.80

Other Manufacturing Expenses

10,043.10

19,692.63 17,453.44 26,652.82 19,578.49

Selling and Admin Expenses

0.00 0.00 0.00 -13,243.69 -4,470.78

Miscellaneous Expenses

24,559.03

8,867.56 8,623.49 947.65 1,011.04

Preoperative Exp Capitalised

0.00 0.00 0.00 0.00 0.00

Total Expenses 49,466.41

30,683.67 28,157.93 22,667.20 31,831.85

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09  12 mths 12 mths 12 mths 12 mths 12 mthsOperating Profit 33,538.9

245,922.76 40,193.90 37,702.61 32,253.24

PBDIT 38,975.66

53,516.29 43,600.75 41,318.57 36,338.83

Interest 27.64 34.83 25.11 11,276.89 8,485.40PBDT 38,948.0

253,481.46 43,575.64 30,041.68 27,853.43

Depreciation 8,373.57 7,495.92 7,676.69 5,242.66 4,355.62Other Written Off 0.00 9,333.44 8,248.97 0.00 0.00Profit Before Tax 30,574.4

536,652.10 27,649.98 24,799.02 23,497.81

Extra-ordinary items -53.15 -9.55 -33.63 183.99 790.68PBT (Post Extra-ord Items)

30,521.30

36,642.55 27,616.35 24,983.01 24,288.49

Tax 9,618.64 11,519.65 8,692.37 8,258.73 8,437.78Reported Net Profit 20,925.7

025,122.92 18,924.00 16,767.56 16,126.32

Total Value Addition 45,267.25

30,027.53 27,522.63 20,235.33 20,926.34

Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 8,127.72 8,341.61 7,486.05 7,058.28 6,844.39Corporate Dividend Tax

1,301.16 1,328.62 1,215.65 1,161.56 1,163.20

Per share data (annualised)Shares in issue (lakhs)

85,554.90

85,554.90 85,554.90 21,388.73 21,388.73

Earning Per Share (Rs)

24.46 29.36 22.12 78.39 75.40

Equity Dividend (%) 190.00 195.00 175.00 330.00 320.00Book Value (Rs) 145.47 132.03 113.97 408.08 368.12

Cash flow

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

  12 mths 12 mths 12 mths 12 mths 12 mthsNet Profit Before Tax

30544.33 36642.57 27616.37 24983.84 23895.42

Net Cash From Operating Activities

32191.74 35919.31 39338.37 20388.01 22272.74

Net Cash (used in)/fromInvesting Activities

-23649.97

-26316.98

-24644.27

-13237.10

-17459.91

Net Cash (used in)/from Financing Activities

-15447.75

-3958.85 -11722.63

-8016.08 -8134.27

Net (decrease)/increase In Cash and Cash Equivalents

-6905.98 5643.48 2971.47 -865.18 -3321.44

Opening Cash & Cash Equivalents

20124.57 14481.09 11509.62 19096.21 22417.66

Closing Cash & Cash Equivalents

13218.59 20124.57 14481.09 18231.04 19096.21

Essar

Essar Oil

Parent Company Essar Energy Plc

Category Oil and Gas

Sector Energy

Tagline/ Slogan Let's begin

USP Global exposure and strong backing from the Essar group

STP

Segment Corporates, people looking to fulfill energy services needs

Target Group Companies involved in natural gas exploration

Positioning

Positioned as technologically advance private sector player in area of

Oil and Gas in India

SWOT Analysis

Strength

1. Strong backing by Essar group which is engaged in diverse sectors

of steel, oil &gas, power, telecom, shipping, ports etc.

2. Network of 1400 retail outlets and more than 250 retail outlets in

various stage of construction

3. State of art technologies at refinery

4. First Indian private sector company to enter petro retailing

5. Very active in CSR activities

6. Strong and dedicated workforce

Weakness

1. Company operations are bound by govt regulations and fluctuations

2. Net sales are affected due to increasing cost

Opportunity

1. Demand-Supply gap in India

2.Increasing natural gas market globally

3.Heavy industrialization causing an increase in demand for fuel

Threats

1.Threats from competitors

2. Competitors receiving subsidies on taxes by central and state

government

3.Economic instability and fluctuations in India's policies

Competition

Competitors

1. Bharat Petroleum Corporation Ltd.

2. Chennai Petroleum Corporation Ltd.

3. Hindustan Petroleum Corporation Ltd.

ONGC

Brand Name ONGC Oil and Natural Gas Corporation

Category Oil & Gas

Sector Energy

Tagline/ Slogan Making tomorrow brighter; Nibhaye zimmedari bharose se

USP India's biggest oil and gas exploration organisation

STP

Segment

Corporates, countries, individuals looking to fulfill energy

needs

Target Group

Enterprises looking for energy for production, people for

petrol diesel for vehicles and domestic uses

Positioning The future of India's energy

SWOT

Strength

1.Indias largest crude oil and natural gas producer 2.Strong brand name 3.High profit making

4.Has over 40,000 employees

5.It produces about 30% of India's crude oil requirement

6.Contributes 77% of India's crude oil production and 81%

of India's natural gas production

7.Commemorative Coin set was released to mark 50

Years of ONGC

Weakness

1.Legal issues 2.Employee management 3.Bureaucracy

4.Human rights and rehabilitation issues

Opportunity 1.Increasing fuel/oil prices 2.Increasing natural gas market 3.More oil well discoveries 

4.Expand export market

Threats

1.Government regulations 2.High Competition

3.Hybrid and electric cars in the market

Competition

Competitors

1.Bharat Petroleum   2.Hindustan Petroleum   3.Reliance Industries 4.IOCL