* Represents consumption of stores & spares
** Also includes depletion and amortisation
*** Reserves net of intangibles

NOTES:

1. Crude oil supplies during the current half year are at the prices settled with refineries which workout at an average of Rs. 9953/MT. The corresponding sales revenue during the period of the last half year was accounted for at the provisional average price of Rs. 8134/MT since the prices had not been finally settled with the refineries at that time. The adjustment of settled price (average Rs. 9868/MT for the half year) was made subsequently in the last quarter of the financial year 2002-03.

2. Gross sales for the quarter includes Rs. 13106 lakh on account of revision of crude oil price from Rs. 2094/MT to Rs. 2119.73/MT for the period 1996-98.

3. Staff expenditure in the half year 2002-03 included a provision for VRS Rs. 23500 lakh, which actually did not materialize and thus was reversed later in the same year.

4.The statutory auditors in their report on the accounts for the year 2002-03 had 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 quantifying the depreciation under Section 205 of the Company’s Act, 1956.

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

(iii) Over due amount aggregating Rs. 21094 lakh. On the basis of the available information they were unable to form any opinion on the recoverability on these dues.

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

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

Management Clarifications:-

In respect of comment No. (i), the company, being an E&P company, is following successful Successful Efforts Method of Accounting. As per this method, depreciation of exploration and development is capitalized and amortised/depleted as per the accounting policy.

Further, the company has already obtained exemption from the Department of Company Affairs in this regard.

In respect of comment No. (ii), joint ventures get their accounts audited by September as per the provisions of the respective agreements. Hence the audited accounts of joint ventures are not available at the time of finalization of Corporation’s accounts.

In respect of comment No. (iii), Management is of the opinion that the overdue amounts are good and realizable.

In respect of comment No. (iv), effective steps are being taken for reconciliation of these accounts and Management does not envisage any significant impact on the above financial results.

Comment No. (v) is only a disclosure requirement having no impact on accounts.

5) The number of investor complaints pending at the beginning of the quarter were 14. During the quarter, 46 complaints were received and 56 complaints were cleared. 4 complaints were pending as on 30. 09.2003.

6) The above quarterly results are subject to limited review by the Auditors of the Corporation.

7) The above results were reviewed by the Audit committee and taken on record by the Board of Directors at the meeting held on 28th October, 2003.

8) Previous period’s figures have been regrouped/reclassified wherever necessary.

By order of the Board


(R S Sharma)
Director (Finance)

Place : New Delhi
Date : October 28, 2003