1. Oil exploration in India began in 1866 and the first commercial discovery was made in 1889 in Digboi, Assam. Over time, more fields were discovered and production increased. 2. In the 1950s, the government established the Oil and Natural Gas Commission (ONGC) to develop India's oil and gas resources as a public sector undertaking. ONGC intensified exploration efforts across the country. 3. Major offshore oil discoveries were made in the 1970s, most significantly the Bombay High field, now known as Mumbai High. This established India as a significant oil producer and changed the country's oil scenario.

2. 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.

3. 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, which
placed 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 "

4. 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 the
Overseas 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.

5. 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.

6. 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

7. 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.

8. 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.

9. 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.

10. 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.

11. 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

12. 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

13. 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.

14. 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,

15. 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.

16. 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

17. 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 people
SHIPPING, PORTS & LOGISTICS BUSINESS
• An integrated logistics solution provider with presence in sea transportation,
ports & terminals, logistics and oilfields services

18. 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.

19. - 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.

20. - 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.

21. - 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.

22. - 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.

23. - 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.

24. - 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

25. 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

26. - 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

27. - 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

28. - 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,

29. -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

30. - 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

31. -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

32. -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.

33. 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.

34. - 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

35. - 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.

36. 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:

37. 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.

38.  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.

39. 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.

40. 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.

41. 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.

42. 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.

43.  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

44. 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.

46. 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.

47. 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.

48. 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.

49. 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.

50. 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

51. 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

52. 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

53. 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

54. 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

55. 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

56. 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

57. 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

58. 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

59. 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

60. 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

61. 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

62. 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

63. 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

64. 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.

65. 3.1 INTRODUCTION ON RATIO ANALYSIS :

66. 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 CLASSIFICATIONOF RATIOS :

67. 1] LIQUIDITY RATIOThis 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
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
1] LIQUIDITY
RATIO
2]
PROFITABILITY
RATIO
3] SOLVENCY
RATIO
4] PROFIT AND
LOSS ACCOUNT
RATIO
5] TURNOVER
RATIO

68. 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 RATIOthis 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 :

69. 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 :

70. 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 :

71. 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 :

72. 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.

74. DATA ANALYSIS & INTERPRETATION
1] LIQUIDITY RATIOS
1) CURRENT RATIO = This ratio indicates the solvency of the business i.e
Ability 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:-
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.
Year ESSAR ONGC
2009 0.62 1.45
2010 0.61 1.39
2011 0.82 1.17
2012 1.07 1.13
0.62 0.61
0.82
1.07
1.45
1.39
1.17 1.13
2009 2010 2011 2012
ESSAR ONGC

75. 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 1.27
2010 0.4 1.22
2011 0.53 1.08
2012 0.45 1.22
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
0.43 0.4
0.53
0.45
1.27
1.22
1.08
1.22
2009 2010 2011 2012
ESSAR ONGC

76. 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 0.19
2010 2.46 0.2
2011 1.65
2012 4.15
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.
2.48 2.46
1.65
4.15
0.19 0.2
2009 2010 2011 2012
ESSAR ONGC

77. 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 23.5
2010 0.07 26.35
2011 1.35 26.37
2012 -2.13 31.02
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.
-1.34
0.07
1.35
-2.13
23.5
26.35 26.37
31.02
2009 2010 2011 2012
ESSAR ONGC

78. 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 43.58
2010 0.9 53.87
2011 3.56 47.58
2012 1.53 50.22
Interpretation:-
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.
4.36
0.9
3.56
1.53
43.58
53.87
47.58
50.22
2009 2010 2011 2012
ESSAR ONGC

79. 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 20.65
2010 0.83 19.39
2011 10 19.4
2012 -36.51 22.24
Interpretation:-
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.
-14.7
0.83
10
-36.51
20.65 19.39 19.4
22.24
2009 2010 2011 2012
essar ongc

80. 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 34.29
2010 3.64 34.54
2011 9.32 26.38
2012 6.85 28.56
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.
13.28
3.64
9.32
6.85
34.29 34.54
26.38
28.56
2009 2010 2011 2012
ESSAR ONGC

81. 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 29.05 365.07
2010 29.3 404.14
2011 47.87 113.97
2012 25.47 132.03
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.
29.05 29.3
47.87
25.47
365.07
404.14
113.97
132.03
2009 2010 2011 2012
ESSAR ONGC

82. 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 34.29
2010 4.5 34.54
2011 11.35 28.38
2012 6.85 29.69
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.
14.89
4.5
11.35
6.85
34.29 34.54
28.38
29.69
2009 2010 2011 2012
ESSAR ONGC