5th August 2003, ONGC News






NOTES:

* Represents consumption of stores & spares
** Also includes depletion, amortisation
*** Reserves excluding intangibles

1. The Audited accounts of 31st March 2003 are subject to review by the Comptroller and Auditor General of India under Section 619(4) of the Companies Act, 1956.

2. The number of investor complaints pending at the beginning of the quarter were 23. During the quarter 116 complaints were received and 125 complaints were cleared. 14 complaints pending as on 30.06.2003 have also since been resolved.

3. Accounting of crude oil supplies during the quarter is at the prices settled with refineries which average to Rs. 9629/MT. The corresponding crude oil sales revenue during the first quarter of last year was accounted for at the provisional average price of Rs. 8125/MT. With adjustment of settled price (average Rs. 9467/MT for the quarter) made subsequently in the last quarter in the financial year 2002 - 2003.

4. The statutory auditors in their report on the accounts for the year 2002 - 2003 has commented as under:-

* (i) Non consideration of depreciation as a charge to Profit and Loss Account being allocated to assets to be depleted and for the purpose of quantiying the depreciation under Section 205 of The Companies Act, 1956

* (ii) Incorporation of unaudited figures of joint venture projects and NELP blocks respectively in the books of the Corporation

(iii) Overdue amounts aggregating Rs. 21094 lakhs. On the basis of available information, they were unable to form any opinion on the recoverability of these dues.

(iv) Accounts pending reconcilliation - the adjustments / provisions, if any, required to be made

* (v) Segregation of outstanding of Small Scale Industry (SSI) from the creditors' balances, for which they had placed reliance on the certificate issued by the Management.

Management Clarifications:-

* Comment no. (i), (ii) and (v) do not have any impact on the financial results for the quarter.
In respect of comment no. (iii), Management is of the opinion that the overdue amounts are good and realisable.
In respect of comment no. (iv), effective steps are being taken for reconcilliation of these accounts and management does not envisage any significant impact on the above financial results.

5. The above quarterly results are subject to limited review by the auditors of the Corporation.

6. The above results have been reviewed by the Audit Committe and taken on record by the Board of Directors at its meeting held on 26th July, 2003.

7. Previous periods' figures have been regrouped / reclassified wherever necessary.


By order of the Board

-sd-
(R S Sharma)
Director (Finance)

Place : New Delhi
Date : July 26, 2003