Calcutta, Nov 13: Oil & Natural Gas Corporation Ltd's contingent liability has shot up by over Rs 1,100 crore in one year. It is Rs 4,640.88 crore as on March 31, 1998, going up from Rs 3522.12 crore a year earlier. Its total contingent liability thus works out to around 29 per cent of its turnover of Rs 15,953.70 crore as on March 31, 1998.Moreover, the central public sector company's panel of five auditors -- Chandabhoy & Jassoobhoy, Lodha & Co, AF Ferguson & Co, MR Narain & Co and Lovelock & Lewes -- has heavily qualified its latest annual report, though not on contingent liabilities.
The auditors have also noted that the company's balance sheet gave a true and fair picture, subject to their qualifications.
In their note, the auditors invited the attention of the shareholders on various issues, including adjustment of possible loss in bond investment of Rs 38.61 crore, loans of Rs 202.41 crore already overdue, non-consideration of depreciation and discrepancy of Rs 15.2 crore in physical stock whichhas not been adjusted.
On the contingent liability front, according to the annual report, the increase of Rs 1118.77 crore includes:
fresh income tax demand of Rs 332.80 crore due to disallowing of exchange loss accounted on accrual basis for assessment year 1995-96; another income tax demand which increased to Rs 1563.47 crore in 1997-98 against Rs 1417.43 crore in the previous year, in respect of disallowance of depreciation and exchange loss; Excise demand of Rs 156.49 crore; claims made by contractors which increased to Rs 1052.49 crore in 1997-98 from Rs 870.16 crore in the previous year. claims made by Mumbai Port Trust which increased to Rs 108.57 crore in 1997-98 from Rs 91.44 crore in the previous year;In addition to this, ONGC has listed penalty demanded by the Gujarat government worth Rs 95.86 crore, excise demand of Rs 42.42 crore, octroi claim of Rs 33.67 crore, another excise demand of Rs 697.03 crore and local cess surcharge of Rs 147.16 crore demanded byTamil Nadu government.
In respect of the income-tax appeal, the management has stated that the income-tax department adjusted Rs 452.3 crore unilaterally and another Rs 100 crore was deposited.
The management has stated that the loans of Rs 202.41 crore is overdue from various PSUs and the matter is being pursued. On the issue of pending reconciliation of accounts in respect of fixed assets of Shibsagar project, auditors said that they were unable to comment.
ONGC management has stated: "Reconciliation is in hand and necessary action will be taken on completion of such reconciliations."
ONGC posted a net profit of Rs 2677.78 crore for the year to March 31, 1998, against Rs 2033.66 crore previous fiscal. The turnover of the company increased to Rs 15,953.70 crore in 1997-98 from Rs 13,858.68 crore previous year. The networth of the company has increased by Rs 2287.9 crore during 1997-98.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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