2. ANINDYA GHOSH
ROLL NO. 521057173
BBA (4TH SEMESTER)
SIKKIM MANIPAL UNIVERSITY
LC CODE: 02737
STUDY ON PROFITABILITY REPORT
FOR O.N.G.C.
A PROJECT REPORT
Submitted By:
ANINDYA GHOSH
Roll No. 521057173
Centre Code No. 02737
BBA (4 th Semester)
In the partial fulfilment for the award of the degree
of
BACHELOR OF BUSINESS ADMINISTRATION
3. I hereby declare that the Project Report entitled
“PROFITABILITY REPORT
ON O.N.G.C.”
Submitted in partial fulfilment of the requirement for the degree
of
‘BACHELOR OF BUSINESS
ADMINISTRATION’
This is my original work not submitted for the award of any
other degree, Diploma, fellowship or any other similar title of
prize
Signature of the Student:
Name of the Student: ANINDYA GHOSH
Roll Number: 521057173
Centre Code: 02737
4. This is to certify that the Project Report entitled
“PROFITABILITY REPORT ON O.N.G.C.“ submitted in partial
fulfilment of the requirements for the degree of Bachelor of
Business Administration from Sikkim Manipal University of
Health, Medical & technological Science. ANINDYA GHOSH
has worked under my supervision and guidance and that no part
of this report has been submitted for the award of any other
degree, diploma, fellowship or other similar titles or prizes and
that the work has not been published in any journal or
magazines.
Signature of the Guide:
Name & Qualification of the Guide:
Mr. Abhisek Jain ( MS FINANCE, MBA, CFA )
5. The Project Report Entitled
“PROFITABILITY REPORT ON
O.N.G.C.”
Submitted By:
ANINDYA GHOSH
Roll No. 521057173
BBA (4th Semester)
Centre Code No. 02737
Is approved and acceptable in quality and form
INTERNAL EXAMINER EXTERNAL
EXAMINER
Name: Name:
_______________________________
______________________________
Signature Signature
6. My project has come to a successful end, all because of hard work and
the valuable contributions made by different people who were directly or
indirectly involved in completion of my project for BBA, and at this
juncture I would like to thank them all. I should start with my Director
Sir Mr. SUSHIT GHOSH and Director Madam Mrs. SUCHORITA
GHOSH and my very much respected Project Guide Mr. ABHISEK
JAIN, for giving me his precious time that was very much needed for the
project. He had put his expertise and talent to its best use and had
painstakingly cleared all the hurdles that I faced while doing my research
for the project. He acted as a true professional and always maintained the
relationship as is expected from a project guide. He gave me enough
confidence at times when it was needed for me and helped me to
complete this project in order and on schedule.
Moreover, I am also thankful to the faculty members of my college,
my friends and my parents for their guidance and crucial suggestions at
critical phases of the project work. Therefore, I am greatly indebted to all
of them for their valuable guidance and constructive suggestions,
perhaps, without which it would have not been possible to complete this
project at all.
ANINDYA GHOSH
8. o ONGC is now a Fortune 500 Company (with 413th rank) and is the
only and the first ever Indian Company to figure in the Fortune’s
list of ‘World’s Most Admired Companies” in the year 2007.
Ranked as the number two E&P Company in world (Platt’s
ranking of top 250 Energy Companies 2011), ONGC remains
India’s Most Valuable PSU in terms of net profit and net-worth.
o ONGC has been ranked at 172nd position in the Forbes Global
2000 list for the year 2011 of the world’s biggest companies released
on 21st April 2010. The ranking is based on Sales (US$ 22.6 billion),
Profits (US$ 4.3 billion), Assets (US$ 44.6 billion) and Market
Capitalization (US$ 53.2 billion). 57 Indian Companies find placed
in the list among which ONGC has been ranked at No.3.
o ONGC has been ranked 24th among the Global publicly-listed
Energy companies as per ‘PFC Energy 50” (2011)
o Financial Express in its latest listing of top 500 Companies of India
for the year 2010-11 has placed ONGC, second on composite overall
ranking amongst all companies in India. ONGC also maintains its
position as most valuable PSU of the Country.
o Business World, in its latest survey on Most Respected Companies
2011 (published on 14th February, 2011) ranked ONGC fourth
amongst all the companies in both private and public sector in
India. ONGC has emerged as not only the sector leader (oil & gas
sector) but also the most respected company amongst all the PSUs.
o Transparency International in a recently released report
‘Promoting Revenue Transparency: 2011 Report on Oil & Gas
Companies’ has ranked ONGC at top on parameters for
organisational disclosure. ONGC ranked at 26th on reporting on
anti-corruption programmes and at 16th place on Country-level
disclosure – International Operations.
o ONGC has been ranked 361st position as per Fortune Global 500 -
2011 list, based on revenues, profits, assets and shareholder’s
equity.
ABOUT O.N.G.C.
9. Represents India’s Energy Security
ONGC has single-handedly scripted India’s hydrocarbon saga by:
• Establishing 7.38 billion tonnes of In-place hydrocarbon
reserves with more than 300 discoveries of oil and gas; in fact, 6 out
of the 7 producing basins have been discovered by ONGC: out of
these In-place hydrocarbons in domestic acreages, Ultimate Reserves
are 2.60 Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas
(O+OEG).
• Cumulatively produced 851 Million Metric Tonnes (MMT) of
crude and 532 Billion Cubic Meters (BCM) of Natural Gas, from 111
fields.
• ONGC has bagged 121 of the 235 Blocks (more than 50%)
awarded 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 33 Oil & Gas projects (9 of them
producing) in 15 countries, i.e. Vietnam, Sudan, South Sudan,
Russia, Iraq, Iran, Myanmar, Libya, Cuba, Colombia, Nigeria,
Brazil, Syria, Venezuela and Kazakhstan.
AUDITOR’S REPORT
Dear Sir(s)
10. 1. We have examined the attached consolidated finalcial
information of ONGc Group of companies (the ‘Group
Companies’) comprising consolidated Statements of Assets and
Liabilities (Annexure-I). Consolidated Cash Flows Statements
(Annexure III) for the years ended on March 31, 2010 and Notes
on Accounts (Annexture XXXI – A and B) for the years ended in
March 31, 2009, 2010 and nine months ended on December 31,
2010 as approved by the Board Of Directors of Oil and
Natural Gas Corporation Limited (“ONGC Ltd.”) and in terms of
our engagement agreed upon with you in accourance with our
engagement letter dated February 22nd, 2011 in connection
with the proposed Further Public Offering (FPO) of Equity
Shares by the “Selling Shareholder”.
The preparation and presentation of this financial
information is the responsibility of the Company’s
Management.
2. the attached consolidated financial information have been
correctly extracted by the Company’s Managenent from the
Group Companies audited fimancial statements for the years
ended on March 31, 2009 and 2010, unaudited financial
statements with limited review for the nine months ended on
Devember 31, 2010.
The consolidated financial statements of the Group
Companies for the year ended on March 31, 2009 and 2010
were audited in accordance with the auditing standards
genarally accepted in india , by M/s Arun K Agarwal and
associates and M/s Ray and Ray, M/s S, Bhandari & Colk and
M/s M Kuppuswamy P S G& Co. on the unqualified audit report
issued with respect to the consolidated financial information
of the Company for such period in accoudance with IGAAS.
We conducted a revew , in accourdance with Standard on
Review Engagements (SRE) 2410, of the Company’s
Consolidated Statement of Assets and Liabilities,
Consolidated Profit & Loss Account and Consolidated Cash
Flow Statement as in and for the nine months period ended on
Devember 31, 2010. Based on our review, nothing has come to
our attention that causes us to believe that such consolidated
financial statements are not prepared, in all material
respects, in accordance with statements are not prepared, in
a ll material respects, in aplicable provisions of the
Companies Act 1956
3. We did not audit /review the financial statements of
associates, subsidiaries, jintly controlled entities and joint
ventures / NELP blocks for the financial years ended
Devember 31,2010. These financial statements for the
relevent periods have audited and reported upon by their
11. auditors whose reports have been furnished to us . We have
placed reliance on the reports of such auditors in so far as it
relates to the amounts included in these consolidated
statements of Assets and Liabilities, consolidated Profit and
Loss Accounts and Consolidated Cash Flow Statements in
accoudance with IGAAS.
4. We have performed such tests and procedures, wich in our
opinion, were nessery for the examination of the attached
consolidated financial information. These tests and
procedures, mainly involved comparison of the attached
financial information with the Company’s audited reviewed
financial statements for the respective years.
5. Based ib above we report that in our opinion and accouding to
the information and explanation given to us we have found the
attached consolidated financial information to be correct
and the same have been used in the sonsolidated financial
information appropriately.
6. In accordance with th requirements the Secutities and
Exchange Board of india and the terms of our engagement
agreed with you, we have also examined the other
consolidated financial information as stated in table below as
on and for the years ended on March 31, 2010, prepared by the
Management and approved by the Board of Directors of ONGC
ltd. For the purpose of inclusion in the Red Herring
Prospectus and Prospectus in connection with th propoesed
FPO of Rquity Shares of the Company.
7. In this regard, for the years ended March 31, 2009 and 2010,
the other consolidated financial information as listed below
has been correctly extracted from the sonsolidated financial
statements based on theaudit reports submited by M/s Arun K
Agarwal & Associates and M/s Kalyanwalla & Mistry together
with M/s P.S.D. & Associates relied upon by us .
21. CONCLUTIONS
Inview of the several subsidiaries and joint bentures of the
company with each entity operating under different regulatory
requirements in different countries and adopting policies and
discloser the information requirement under Accounting
Standards (AS)- 15 on Employee Benefit is not disclosed in
Consolidated Financial statement due to impractibility:
Disclosure requirement is respect of subsidiaries companies have
been disclosed to the extent abailable from their
audited/unaudited accounts.
22. Figures in the accounts are stated in Rs. Million except those in
parenthesis which would otherwise have become Nil on account
of rounding off.
