* Represents
consumption of stores & spares
** Also includes depletion, amortisation
*** Reserves excluding intangibles
NOTES:
1. The audited accounts are subject to review by the Comptroller
and Auditor General of India under Section 619(4) of the Companies
Act, 1956.
2. The above results have been reviewed by the Audit Committee
and taken on record by the Board of Directors in its meeting
held on 22nd June, 2004.
3. The Board of Directors have recommended final dividend
@100% which works out to Rs. 142593 lakh, over and above the
interim dividend of 140% amounting to Rs. 199631 lakh paid
in February, 2004. The total dividend @240% for the year amounts
to Rs. 342224 lakh.
4. In terms of the decision of the Government of India ONGC
shared the under recoveries of the oil marketing on PDS kerosene
and domestic LPG for the year 2003-04.The sharing of under
recovery as per the above decision is in the form of discount
by ONGC to IOC, BPCL and HPCL on sale of Crude oil, PDS Kerosene
and domestic LPG which have been accounted for during the
current year. Accordingly Gross Sales are lower by Rs. 269039
lakh for the year 2003-04.
5. Difference between the crude oil price provisionally invoiced
to the refineries and the price agreed with them for the year
ended 31st March, 2003 was accounted for during the quarter
ended 31st March 2003. Hence the figures for the quarter ended
31st March, 2004 are not comparable.
6 The Company has adopted the Guidance Note on Accounting
for Oil and Gas producing Activities issued by the Institute
of Chartered Accountants of India w.e.f 1.4.2003 and has changed
its accounting policies in line with requirements of the Guidance
Note as under:
i) The full estimated abandonment costs has been recognized
as an asset (producing property) with a corresponding credit
to liability for abandonment cost. As a result of this, the
cost of Producing Property on the asset side, as well as the
liability for abandonment costs on the liability side has
gone up by Rs. 802920 lakh during the year. This has, however
no impact on profits for the year.
ii) The time limit of carry over of exploratory wells in
progress has been changed to two years from three years for
charging the same to Profit and Loss Account. As a result
of this change, the dry well expenditure for the year has
gone up by Rs. 7689 lakh with corresponding decrease in profit
before tax.
iii) For purposes of calculation of depletion as per Guidance
Note, the Capital work in progress related to facilities and
development wells in progress have been excluded from the
cost base. As a result of this change depletion for the year
is lower by Rs. 8150 lakh with corresponding increase in profit
before tax.
7. The statutory auditors in their report on the accounts
for the year 2003-04 have commented on incorporation of unaudited
figures relating to some joint venture projects & NELP
blocks and non adjustmentof difference between physical verification
and books of accounts in some of the cases.
Management Clarifications:-
Audited Accounts of JVs were not available until finalization
of Accounts. Regarding differences between physical verification
and books of accounts effective steps are being taken for
reconciliation. Management does not envisage any significant
impact of these adjustments on the above financial results.
8. During the year 2003-04, the government of India divested
10% equity in the Company. Accordingly the promoter’s
shareholding has decreased from 84.11% to 74.15%
9. The number of investor complaints pending at the beginning
of the quarter were 9. During the quarter 37 complaints were
received and 35 complaints were cleared. 11 complaints were
pending as on 31.03.2004.
10. The Consolidated Financial Results have been prepared
in line with the provisions of Accounting Standard (AS)-21
‘Consolidated Financial Statement’, AS-23 ‘Accounting
for Investments in Associates in Consolidated Financial Statements’
and AS-27 ‘Financial Reporting on Interests in Joint
Ventures’. The above results are not comparable with
previous year as MRPL became subsidiary of ONGC w.e.f 30th
March , 2003 and ONGC Nile Ganga B.V became the subsidiary
of ONGC Videsh Ltd. W.e.f 12th March, 2003.
11. Previous year’s figures have been regrouped/ reclassified
wherever necessary.
By order of the Board
--
(R S Sharma)
Director (Finance)
Place : New Delhi
Date : June 22, 2004
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