1. The market sales during the year ended 31st March 2009 has increased to 27.16 MMT from 25.79 MMT achieved during corresponding period of previous year. The increase is mainly in HSD Retail (10.87%), HSD Direct (3.38%), MS Retail (10.84%), LPG (3.43%), Naphtha (10.40%) offset by reduction in ATF(4.42%) and Furnace oil (5.74%).

2. During the year ended 31st March 2009, subsidy claim from Government towards sale of SKO (PDS) and LPG (Domestic) amounting to Rs.56,621 lakhs (Previous year Rs.55,444 lakhs)) has been accounted as per the existing scheme approved by the Government of India.

3. For the current year, the under recovery on sale of sensitive petroleum products has been fully compensated. Based on the intimation from the Government of India, the Corporation has accounted Oil Marketing Companies Government of India Special Bonds amounting to Rs.1621,638 lakhs (Previous year 858,950 lakhs) for the current year. Out of these, bonds amounting to Rs.206,528 lakhs is yet to be received from Government of India. Further, the discount from upstream oil companies including compensation for loss on import of diesel and petrol, as advised by the Government of India is Rs.755,644 lakhs (Previous year Rs.597,512 lakhs). This has been accounted during the year towards discount received for purchase of Crude Oil, LPG and SKO from ONGC and GAIL.

The Corporation has classified investments in 6.35% Oil Marketing Companies GOI Special Bonds - Rs.309,996 lakhs and 6.90% Oil Marketing Companies GOI Special Bonds - Rs.498,671 lakhs as long term investments. No provision for dimunition in value has been made as there is no permanent decline in the value of these investments.

4. The Gross Refining Margin (GRM) during the current year ended 31st March 2009 is USD 4.48 per barrel (Previous year USD 4.60 per barrel) for Mumbai Refinery and USD 6.27 per barrel (Previous year USD 7.18 per barrel) for Kochi Refinery.

5. Employees´ cost for the year include balance estimated liability on revision in salary for management staff with effect from 1st January 2007 amounting to Rs.11,400 lakhs based on guidelines issued by the Government of India on revision of scales of pay. Further as per the guideline, the gratuity limit has been enhanced to Rs.10 lakhs per employee. Considering these, the actuarial valuation for employee benefits has been provided during the year. Provision for pay revision for non-management staff has not been made since no reliable estimate of this revision can be made as of date.

6. Other expenditure for the year ended 31st March 2009 includes Rs.130,273 lakhs towards losses on foreign exchange fluctuations (During the previous year there were gains on foreign exchange fluctuations of Rs.25,474 lakhs which were accounted as Other Income)

7. Depreciation includes Rs.23,022 lakhs for the current year as compared to Rs. 32,017 lakhs during the previous year on account of LPG cylinders depreciated at 100%.

8. BPCL operates in a single segment, viz., Downstream petroleum sector which consists of Refining and Marketing activities. Accordingly segment results are not furnished for standalone results.

9. Figures relating to corresponding periods of the previous year have been regrouped wherever necessary

10. The Board of Directors has recommended a dividend of Rs.7 per share.

11. The Statutory Audit of Accounts for the year ended 31st March 2009 has been completed. Further the Accounts were reviewed by the Audit Committee on 29th May 2009 before submission to the Board.

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

13. The Audited Consolidated Financial Results for the year ended 31st March 2009 has been prepared in line with the requirements of Accounting Standard 21 - Consolidated Financial Statements and Accounting Standard 27 - Financial Reporting of interest in Joint Ventures

14. The above audited results of Bharat Petroleum Corporation Limited and the audited consolidated Financial results for the year ended 31st March 2009 have been taken on record by the Board at its meeting held on 29th May 2009.

S.K. Joshi
Director (Finance)