Live Project presentation

On
‘‘An Analysis Study of Annual Report of the company ONGC’’

Presented by- Rima Saha.

ID No- 20IUT0160031
MBA 1st Year
Under the Guidance of
Dr. Malay Kumar Nayak
Table of Contents

• Introduction
• Company Profile
• Objective of the study
• Research methodology
• Annual Reports
• Conclusion
• References
 Introduction:

• An Annual Report is a comprehensive report on a company’s activities throughout the preceding

year.
• Annual report is intended to give shareholders and other interested people information about the
company’s activities and financial performance.
• It gives an opportunity to take a step back and look at the overall practical and financial health of
the company’s business.
• You can find out whether the company is making more money than it is spending. You can get an
idea of managements strategic plan for the coming year.
 Company Profile:

 Oil and Natural Gas Corporation (ONGC) is an Indian public sector multinational crude oil and gas

 company. Its registered office is in New Delhi.
 It is owned by the Government of India, under the administrative control of the 
Ministry of Petroleum and Natural Gas.
 It is the largest oil and gas exploration and production company in the country, and produces around
70% of India's crude oil and around 84% of its natural gas.
 ONGC was founded on 14 August 1956 by Government of India.
 In a survey by Government of India for fiscal year 2019–20, it was ranked as the largest profit making
PSU in India. It is ranked 7th among the Top 250 Global Energy Companies by Platts.
 Product of ONGC: Crude Oil, Natural Gas, Ethane, Superior Kerosene Oil ,LPG, Motor Spirit .
 Objective of the Study:

 To study about the annual report of the company ONGC.

 Recognize important person (Directors, employees, govt. employees, banker, consultant etc.)

 To know the financial position and profitability of the ONGC.

 To analyse the financial performance of the ONGC as a whole.

 Research Methodology:

• Research methodology is a way to systematically solve the research problem. In this we

describe the various steps that are taken by a researcher.
• Data Collection Methods:
• The methodology reveals the methods of data collection. There may be primary sources or
secondary sources of data collection.
• Primary Data:
• Primary data collected from the respondents. Questionnaire prepared by keeping in view of
the objective.
• Secondary Data:
• Secondary data was collected through various publications of books, magazines, annual
reports, newspapers and websites.
Annual Report
2019-2020
 Directors Report of Oil And Natural Gas Corporation Ltd.

The Board of Directors of your Company (ONGC) are pleased to share with you the highlights, developments and the progress
that your Company has made during the financial year ended 31.03.2019 and to present the 26th Annual Report on the
business and operations of the Company and its Audited Statements of Accounts together with the Auditors' Report and
Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.
The major highlights of your Company during FY’20 is:
a) Standalone production has been 44.57 MMTOE against 45.86 MMTOE during FY’19.
b) Value Added Products (VAP) production was 3,548 (Thousand Tones) KT as compared to 3,641 KT during FY’19 - mainly due
to less receipt of condensate.
c) Your Company drilled 500 wells (Exploratory wells: 106, Development and Side Track wells: 394) in spite of less Rig Months
and lockdown due to COVID-19. FY’20 is the fourth consecutive year when your Company has drilled 500 or more wells.
 Auditor Report of Oil And Natural Gas Corporation Ltd.

Report on the Audit of the Standalone Financial Statements:

Opinion

We have audited the accompanying standalone financial statements of Oil and Natural Gas Corporation
Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2019, the Statement of Profit
and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of
Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary
of significant accounting policies and other explanatory information (hereinafter referred to as "the
standalone financial statements").

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of these Standalone Financial Statements of the current period. These matters were addressed in the
context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our report.
 Income statement
Particulars 31_Mar_2020 31_Mar_2019
Cost Of Revenue 307.25 K 314.17 K
Total Revenue/Income  425.00 K 453.68 K
Gross Profit  117.75 K 139.51 K
Total Operating Expense 362.44 K 365.40 K

Other Operating Expense 91239.39 14507.12

Operating Income/Profit  16686.52 49645.50

Interest Expense 3890.13 4020.32
Net Income From Continuing Operation  11560.15 33886.93

Depreciation Expense 26634.88 23703.70

Total Other Income Expense Net 0 3986.57

Net Income  10907.15 30546.04

Net Income Applicable to Common Share 10907.15 30546.04

Income/Profit Before Tax  19068.15 54845.66

Income Tax Expense 7508.00 20880.21
EBIT 49593.16 82813.69
EBITDA 48940.16 79150.27
EPS (Earning Per Share) 0 24.28
Total Dividend -8297.24 -10086.02
 Profit and loss account:

 Particulars Mar'20 Mar'19

INCOME:
Sales Turnover 96213.61 109654.55
Excise Duty 47.77 45.13
NET SALES 96165.84 109609.42
Other Income 6105.0260 7519.0080
TOTAL INCOME 102270.87 117128.43
EXPENDITURE:
Manufacturing Expenses 6841.84 6201.52
Material Consumed 7901.90 7256.85
Personal Expenses 11512.42 12113.03
Selling Expenses .00 .00
Administrative Expenses 29306.43 33332.25
Expenses Capitalised .00 .00
Provisions Made .00 .00
TOTAL EXPENDITURE 55562.60 58903.65
Operating Profit 40603.24 50705.78
EBITDA 46708.27 58224.78
Depreciation 18616.86 15778.62
Other Write-offs .00 .00
EBIT 28091.41 42446.16
Interest 2823.68 2492.14
EBT 25267.74 39954.03
Taxes 6924.15 13238.24
Profit and Loss for the Year 18343.59 26715.79
 Balance Sheet:
Particulars Mar'20 Mar'19
Liabilities
Share Capital 6290.15 6290.15
Reserves & Surplus 188047.94 196702.40
Net Worth 194338.09 202992.55
Secured Loan 13949.11 21593.57
Assets
Gross Block 208314.00 181369.80
(-) Acc. Depreciation 80614.94 56950.68
Net Block 127699.06 124419.12
Capital Work in Progress 36225.54 35050.23
Investments 72429.99 84881.54
Inventories 8566.62 7749.16
Sundry Debtors 4777.39 8439.96
Cash and Bank 968.23 504.06
Loans and Advances 46013.92 41190.74
Total Current Assets 60326.16 57883.93
Current Liabilities 59356.81 52438.29
Provisions 29036.74 25210.40
Total Current Liabilities 88393.55 77648.68
NET CURRENT ASSETS -28067.39 -19764.76
TOTAL ASSETS(A+B+C+D+E) 208287.20 224586.13
 Cashflow Statement:

CASH FLOW OF OIL AND NATURAL GAS March March

CORPORATION (in Rs. Cr.) 2020 2019
NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS 13,444.54 26,715.79
AND TAX
Net Cashflow From Operating Activities 57,785.25 42,252.01
Net Cash Used in Investing Activities -34,958.27 -22,019.85
Net Cash Used from Financing Activities -22,747.10 -20,245.61
Foreign Exchange Gains / Losses 0.00 0.00
Adjustments on Amalgamation Merger Demerger Others 0.00 0.00
NET INC/DEC IN CASH AND CASH EQUIVALENTS 79.88 -13.46

Cash and Cash Equivalents Begin of Year 16.14 29.60

Cash and Cash Equivalents End of Year 96.03 16.14

 Conclusion:

After a carefully analysis of all the ONGC’s financial statements and studying the
financial reports additional information we can a make a conclusion that the
growth and development of the organization is depending on financial positions.
 Compare to FY2019 to FY2020 there is a slowdown in the business activities.
 Compare to 2019, this year 2020 ONGC make some losses of Rs. 10529 crore in
the financial year 2019-2020 because of a drop in crude oil prices, the impact of
the lockdown and exchange losses.
 References:

• www.ongcindia.com
• www.ongc.co.in
• www.moneycontrol.com