1. The audited accounts for the year ended 31.03.2005 are under review by the Comptroller and Auditor General of India under section 619(4) of the Companies Act, 1956.

2. In terms of the decision of the GOI being conveyed by MoP&NG on quarterly basis, ONGC has been sharing the burden of under recoveries of Oil Marketing Companies (OMCs) on PDS Kerosene and domestic LPG since April, 2003. As per the GOI decision applicable for the quarter ended 30th June, 2005, Sales Revenue in respect of Crude Oil, LPG and SKO during the quarter is net of Rs. 287600 lakh (previous quarter Rs. 81489 lakh) on this account. Impact on Profit Before Tax and Profit after Tax for the quarter is Rs 263436 lakh (previous quarter Rs. 75385 lakh) and Rs. 174763 lakh (previous quarter Rs. 47800 lakh) respectively.

3. Gross sales and purchases for the quarter include Rs. 93633 lakh (previous quarter Rs. 132745 lakh) and Rs. 93564 lakh (previous quarter Rs. 132745 lakh) respectively on account of trading of MRPL products, a subsidiary of ONGC.

4. Staff expenditure for the current quarter includes Rs. 3530 lakh (previous quarter Rs. 7500 lakh) on account of provision for Voluntary Retirement Scheme (VRS).

5. The statutory auditors in their report on the accounts for the year 2004-05 had commented on non adjustment of differences between physical verification of inventories, fixed assets and capital stores vis-à-vis the books of accounts in few units. Effective steps are being taken for reconciliation of the same. Management does not envisage any significant impact of these adjustments on the above financial results.

6. The number of investor complaints pending at the beginning of the quarter was 23. During the quarter, 486 complaints were received and 497 complaints were settled. The balance 12 complaints pending at the end of the quarter have since been resolved. This excludes investor complaints regarding the offer for sale upto 10% of equity shares of the company made by the Government of India in March, 2004, which are being attended to by the Registrar to the issue appointed by Govt. of India.

7. The above results have been reviewed by the Audit Committee and approved by the Board of Directors in its meeting held on 27th July, 2005. The same are subject to limited review by the statutory auditors of the company.Notes :

1. The audited accounts for the year ended 31.03.2005 are under review by the Comptroller and Auditor General of India under section 619(4) of the Companies Act, 1956.

2. In terms of the decision of the GOI being conveyed by MoP&NG on quarterly basis, ONGC has been sharing the burden of under recoveries of Oil Marketing Companies (OMCs) on PDS Kerosene and domestic LPG since April, 2003. As per the GOI decision applicable for the quarter ended 30th June, 2005, Sales Revenue in respect of Crude Oil, LPG and SKO during the quarter is net of Rs. 287600 lakh (previous quarter Rs. 81489 lakh) on this account. Impact on Profit Before Tax and Profit after Tax for the quarter is Rs 263436 lakh (previous quarter Rs. 75385 lakh) and Rs. 174763 lakh (previous quarter Rs. 47800 lakh) respectively.

3. Gross sales and purchases for the quarter include Rs. 93633 lakh (previous quarter Rs. 132745 lakh) and Rs. 93564 lakh (previous quarter Rs. 132745 lakh) respectively on account of trading of MRPL products, a subsidiary of ONGC.

4. Staff expenditure for the current quarter includes Rs. 3530 lakh (previous quarter Rs. 7500 lakh) on account of provision for Voluntary Retirement Scheme (VRS).

5. The statutory auditors in their report on the accounts for the year 2004-05 had commented on non adjustment of differences between physical verification of inventories, fixed assets and capital stores vis-à-vis the books of accounts in few units. Effective steps are being taken for reconciliation of the same. Management does not envisage any significant impact of these adjustments on the above financial results.

6. The number of investor complaints pending at the beginning of the quarter was 23. During the quarter, 486 complaints were received and 497 complaints were settled. The balance 12 complaints pending at the end of the quarter have since been resolved. This excludes investor complaints regarding the offer for sale upto 10% of equity shares of the company made by the Government of India in March, 2004, which are being attended to by the Registrar to the issue appointed by Govt. of India.

7. The above results have been reviewed by the Audit Committee and approved by the Board of Directors in its meeting held on 27th July, 2005. The same are subject to limited review by the statutory auditors of the company.