1. The Board has recommended a final dividend of Rs 5.25 per share.

2. The Audited Accounts are subject to review by the Comptroller & Auditor General of India under Section 619(4) of the Companies Act, 1956.

3. Average Gross Refining Margins during the he year was US $ 3.97 per BBL as against US $ 6.54 per BEL during the corresponding previous year. Refining margin during the current year is lower mainly due to fall in the international crude oil prices resulting in inventory losses.

4. The prices of LPG (Domestic) and SKO (LPG) are subsidized as per the scheme approved by the Government in January´ 2003. Subsidy amounting to Rs 574.23 Crores (2007-08 : Rs. 557.84 crores) for the year has been accounted at 1/3rd of the subsidy rates for 2002-03 as approved by the Government of India.

5. Government of India issued / gave in-principle approval for issue of Oil Bonds amounting to Rs 14692.77 crores (2007-08 : Rs 7703 crores) which has been accounted during the year 2008-09.

6. During the year, ONGC and GAIL offered discount amounting to Rs 7176.95 crore (2007-08 : Rs 5408.89 crores) on crude, SKO and LPG purchased from them.

7. The Company has exercised the option as per AS-17 (notified under the Company´s Accounting Standard Rules, 2006 ) and has changed its accounting policy for recognition of exchange differences arising on long term foreign currency monetary items. which hitherto were charged to the Profit and Loss Account. This changes has resulted in increase in Profit for the year by Rs 203.30 crores.

8. The employee cost for the year 2008-09 is higher due to provision made for Rs 243.60 crores towards revision in salary for management staff w.e.f. January 01, 2007. Pending finalisation of salary revision in respect of non management employees. no provision has been made in the books as the amount is not determinable.

9. Previous year´s figures have been regrouped / reclassified wherever necessary.

B Mukherjee
Director (Finance)