Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas exploration company, has announced that MSKA & Associates has declined their appointment as Joint Statutory Auditor for the Financial Year 2025-26. The decision comes in light of potential conflicts of interest that could compromise the firm's independence.

Reasons for Declining the Appointment

MSKA & Associates, in a letter dated September 24, 2025, informed ONGC that they cannot accept the role due to existing engagements with ONGC Group companies. The firm identified that its network entity has been providing multiple services to the ONGC Group, including:

1. Accounting and finance services to one of ONGC's subsidiaries
2. Business valuation services to an associate company of ONGC

These services fall under the category of prohibited services as per Section 144 of the Companies Act, 2013. Accepting the appointment as Joint Statutory Auditor would compromise the firm's independence, which is crucial for maintaining the integrity of the audit process.

Background of the Appointment

The Comptroller & Auditor General of India (C&AG) had previously notified ONGC about the appointment of five chartered accountant firms as statutory auditors. MSKA & Associates was specifically appointed for the ONGC Calcutta unit in Kolkata.

ONGC's Response

ONGC, in its filing to the stock exchanges, acknowledged receipt of the letter from MSKA & Associates. The company stated that it had previously informed about the C&AG's appointment of the five firms in filings dated September 12 and 19, 2025.

Implications

This development highlights the importance of auditor independence in ensuring transparent and reliable financial reporting. It also underscores the complexities that can arise in large corporate structures with multiple subsidiaries and associate companies.

ONGC will likely need to work with the C&AG to appoint a replacement for MSKA & Associates to ensure a complete panel of joint statutory auditors for the upcoming financial year.

The incident serves as a reminder of the strict regulations governing auditor appointments and the need for thorough conflict of interest checks in the auditing process.

Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas giant, is making significant strides in its green energy transition. The company has unveiled ambitious plans to acquire renewable energy projects with a substantial capacity of 2.5 to 3 gigawatts (GW), according to a recent statement from a company executive.

Expanding Renewable Portfolio

This move by ONGC signals a strong commitment to diversifying its energy portfolio and aligning with global trends towards cleaner energy sources. The planned acquisition of 2.5-3 GW of renewable energy projects represents a considerable expansion in the company's green energy capabilities.

Strategic Shift

ONGC's decision to invest heavily in renewable energy projects marks a strategic shift for the traditionally fossil fuel-focused company. This initiative reflects the growing importance of sustainable energy solutions in the global energy landscape and demonstrates ONGC's adaptability to changing market dynamics.

Implications for India's Energy Sector

The acquisition plan could have far-reaching implications for India's energy sector:

• Accelerated Green Energy Transition: ONGC's move is likely to accelerate India's transition towards renewable energy sources.
• Market Dynamics: This large-scale acquisition could potentially reshape the competitive landscape in India's renewable energy market.
• Energy Security: Diversification into renewables may enhance India's energy security by reducing dependence on fossil fuel imports.

Looking Ahead

While specific details about the types of renewable projects or the timeline for acquisitions have not been disclosed, this announcement positions ONGC as a significant player in India's renewable energy future. The company's expertise in large-scale energy operations could prove valuable in managing and expanding these new renewable assets.

As ONGC moves forward with its plans, industry observers will be keenly watching how this traditional oil and gas behemoth navigates the complexities of the renewable energy sector and integrates these new assets into its existing operations.