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Notes to Accounts of Asian Oilfield Services Ltd.

Mar 31, 2015

1. Disclosure as per Clause 32 of the Listing Agreement with the Stock Exchange Loans and advances in the nature of loans given to subsidiaries, associates, firms / companies in which directors are interested:

2. Dues of Micro, Small & Medium Enterprises

The Company has not received any intimation from the suppliers regarding their status under the Micro Small and Medium Enterprises Act, 2006 and hence disclosure, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act, have not been given.

3. Segment Reporting

In accordance with Accounting Standard 17 "Segment Reporting" as prescribed under Companies (Accounts) Rules, 2014, the Company has determined its business segment as Seismic data acquisition and its related services. Since there are no other business segments in which the Company operates, there are no other primary reportable segments, therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

4. Leases

Where the Company as a lessor leases assets under finance leases, such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant rate of return on the outstanding net investment.

Assets leased by the Company in its capacity as a lessee, where substantially all the risks and rewards of ownership vest in the Company are classified as finance leases. Such leases are capitalized at the inception of the lease at the lower of the fair value and the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis over.

5. Employee Benefits

a) Defined Contribution Plan

The Company makes Provident Fund and contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee paymentof interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Company recognizedRs 11,91,415 (March 31, 2014: Rs 16,40,143) for provident fund contributions in the profit and loss account.The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans

The Company makes annual contributions to the Employees' Croup Gratuity-cum-Life Assurance Scheme of the Life insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.


Mar 31, 2014

1. Corporate Information

Asian Oilfield Services Limited (the "Company") is a Public Limited Company domiciled in India and incorporated under the provision of the Companies Act, 1956 and is listed on the Bombay Stock Exchange (BSE). The Company is a reservoir imaging company, offering a suite of geophysical services specializing in land and well seismic services. The portfolio of services include 2D and 3D seismic data acquisition, processing and interpretation, topographic survey, continuous core drilling for mineral and CBM exploration, wire-line logging and directional core drilling to target shallow horizons. In addition to the core services the Company also provides specialized high technology services to oil and gas companies for targeted applications. The Company possesses an experience of working in difficult terrains while respecting local socio-economic realities and environment. The Company has expanded its activities through its foreign subsidiaries to cater to the international markets. The Registered Office of the Company is located at 29, Payal Complex, Station Road, Vadodara - 390020 (Gujarat) and Corporate Office at 703, IRIS Tech Park, Tower-A, Sector-48, Sohna Road, Gurgaon-122018 (Haryana).

2. Notes:

1. Vehicle Loan from HDFC Bank was taken during FY 2012-13 and carries interest of 12% per annum, maturing on 15/12/2015. The loan is repayable in 35 monthly installment from the date of loan. Vehicle loan is secured by way of hypothecation of vehicle acquired out of the loan.

2. Vehicle Loan from OAIS was taken during FY 2012-13 and carries interest of 16.40% per annum, maturing on 15/10/2015. The loan is repayable in 35 monthly installment from the date of loan. Vehicle loan is secured by way of hypothecation of vehicle acquired out of the loan.

3. Notes:

1. Cash Credit from Banks is secured by hypothecation of all chargeable current assets of the company and pledge of Term Deposits. Cash Credit is repayable on demand and carries rate of interest of 14.5% per annum

2. Unsecured ICD of Rs. 25 Crores from Global Coal & Mining Pvt Ltd carries rate of interest of 15.25% per annum and is repayable in 2 equal installments wherein the first installment falls due on 28th May, 2014 (12 months from the date of deposit i.e. 28th May 2013.)

3. Unsecured ICD of Rs. 11 Crores from Thriveni Earthmovers Pvt Ltd repayable on demand and carries rate of interest of 15.00% per annum

Note 4. Additional Information

1. Contingent Liabilities

(Amount in Rs. ) Particulars Mar31, 2014 Mar 31, 2013

Towards Guarantees issued by bank 15,380,000 100,588,064

Demand for Income Tax contested by the Company 30,072,513 16,290,153

Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities.

5. Dues of Micro, Small & Medium Enterprises

The Company has not received any intimation from the suppliers regarding their status under the Micro Small and Medium Enterprises Act 2006 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act, have not been given.

6. Information in respect of related parties

During the year, the Company entered into transactions with related parties. List of related parties along with nature and volume of transaction and balance at 31st March 2014 are presented below:

a) Holding : Samara Capital Partners Fund I Ltd

b) Subsidiary : AOSL Petroleum Pte Ltd

: Asian Oilfield & Energy Services DMCC : Asian Offshore Private Limited

c) Key Management : Mr. Rahul Talwar- Whole Time Director Personnel

7. Segment Reporting

In accordance with Accounting Standard 17 "Segment Reporting" as prescribed under Companies (Accounting Standards) Rules, 2006, the Company has determined its business segment as Seismic data acquisition and its related services. Since there are no other business segments in which the Company operates, there are no other primary reportable segments, therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

8. Leases

Where the Company as a lessor leases assets under finance leases, such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant rate of return on the outstanding net investment.

Assets leased by the Company in its capacity as a lessee, where substantially all the risks and rewards of ownership vest in the Company are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value and the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

9. Employee Benefits

a) Defined Contribution Plan

The Company makes Provident Fund and contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee paymentof interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

Notes:

a. Discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

b. As the investment is with the Insurance Company, list of investment is not available, so expected return is assumed to be available on risk free investment like PPF.

c. The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

d. 100% of plan assets are invested in group gratuity scheme offered by LIC of India.

10. Current assets and loans and advances

In the opinion of the Board of Directors the current assets, loans and advances have a value realisation in the ordinary course of businessat least equal to the amount at which they are stated and provision for all known liabilities has been made. As a matter of prudence, Company has made provision of Rs. 78.23 Lacs in the current year ( Previous year : Rs. 138.42 Lacs) towards doubtful recovery of debt, which has been reflected as Exceptional Items in the Statement of Profit and Loss.

11. The previous year figures have been accordingly regrouped/re-classified to conform to the current year''s classification.


Mar 31, 2013

1. CORPORATE INFORMATION

Asian Oilfield Services Limited (the "Company") is a Public Limited Company domiciled in India and incorporated under the provision of the Companies Act, 1956 and is listed on the Bombay Stock Exchange (BSE). The Company is a reservoir imaging company, offering a suite of geophysical services specializing in land and well seismic services. The portfolio of services include 2D and 3D seismic data acquisition, processing and interpretation, topographic survey, continuous core drilling for mineral and CBM exploration, wire-line logging and directional core drilling to target shallow horizons. In addition to the core services ASIAN also provides specialized high technology services to oil and gas companies for targeted applications. The Company possesses an experience of working in difficult terrains while respecting local socio-economic realities and environment. Asian has expanded its activities through its foreign subsidiaries to cater to the international markets. The Registered Office of the Company is located at 29, Payal Complex, Station Road, Vadodara - 390020 (Gujarat) and Corporate Office at 703, IRIS Tech Park, Tower-A, Sector-48, Sohna Road, Gurgaon-122018 (Haryana).

2. Contingent Liabilities

(Amounting)

Particulars 31 March 2012

Towards Guarantees issued by bank 100,588,064 182,785,839

Demand for Income Tax contested by the Company 16,290,153 16,289,283

3. Dues of Micro, Small & Medium Enterprises

The Company has not received any intimation from the suppliers regarding their status under the Micro Small and Medium Enterprises Act 2006 and hence disclosure, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act, have not been given.

4. Information in respect of related parties

During the year, the Company entered into transactions with related parties. List of related parties along with nature and volume of transaction and balance at 31st March 2013 are presented below:

a) Subsidiary : AOSL Petroleum Pte Ltd.

Asian Oilfield & Energy Services DMCC Asian Offshore Private Limited

b) Key Management Personnel Mr. Rahul Talwar-Whole Time Director

Mr. Avinash Manchanda - Managing Director

Mr. Miten Manchanda - GM - Seismic Support Services

c) Associate Nimit Finance Private Limited

5. Segment Reporting

In accordance with Accounting Standard 17 "Segment Reporting" as prescribed under Companies (Accounting Standards) Rules, 2006, the Company has determined its business segment as Seismic data acquisition and its related services. Since there are no other business segments in which the Company operates, there are no other primary reportable segments, therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

6. Leases

Where the Company as a lessor leases assets under finance leases, such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant rate of return on the outstanding net investment.

Assets leased by the Company in its capacity as a lessee, where substantially all the risks and rewards of ownership vest in the Company are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value and the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

7. Employee Benefits

a) Defined Contribution Plan

The Company makes Provident Fund and contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Company recognised Rs.1 5,10,032 (March 31, 2012: Rs.1,736,180) for provident fund contributions in the profit and loss account. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans

The Company makes annual contributions to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 1 5 days salary payable for each completed year of service or part thereof. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

8. Current assets and loans and advances

In the opinion of the Board of Directors the current assets, loans and advances have a value realisation in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made. As a matter of prudence, Company has made provision of Rs.138.42 Lacs in the current year ( Previous year : Rs.73.94 Lacs) towards doubtful recovery of debt, which has been reflected as Exceptional Items in the Statement of Profit and Loss.

Also, the provision created in the previous year of Rs.73.94 Lacs towards doubtful recovery of debt, has been written back in the current year on review of its recoverability as on the year end, which has been so reflected under "Note 20: Other Income" of the Financial Statements.

9. The previous year figures have been accordingly regrouped/re-classified to conform to the current year''s classification.


Mar 31, 2012

Note 1 CORPORATE INFORMATION

Asian Oilfield Services Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company is engaged in providing geophysical, drilling and well services to its customer. The Registered Office of the Company is located at 7th Floor, B Wing, Manubhai Tower, Sayajigunj, Vadodara, Gujarat - India.

Note:

Term Loan from State Bank of India was taken during the financial year 2010 -11 and carries interest 5% above State Bank of India base rate (effective interest rate 12.5% p.a.) maturing on 30th September, 2013. The loan is repayable in 30 monthly installments of Rs 35 lakhs for the first 25 installments and balance 5 installments of Rs 45 lacs along with interest, from the date of loan. Term loans are secured by way of hypotecation of all fixed assets acquired out of the loan. The said loans are futher secured by way of equitable mortgage of office premise and shop situated at Baroda. Further, the loan has been guaranteed by the personal guarantee of the Managing Director of the Company.

Note:

1. Cash Credit from Banks is secured by hypothecation of all chargeable current assets of the Company and pledge of TDR. Further, the loan has been guaranteed by the personal guarantee of the Managing Director of the Company. Cash Credit is repayable on demand and carries rate of interest of 12.5% p.a.

2. Overdraft facility is secured against fixed deposits. Overdraft facility is repayable on demand and carries rate of interest of 11.5% p.a.

1. Contingent Liabilities (Amount in Rs)

Particulars As at As at March 31, 2012 March 31, 2011

Outstanding balance on Bank Guarantees 182,785,839 143,032,923

Demand for Income Tax contested by the Company 16,289,283 14,871,198

2.Dues of Micro, Small & Medium Enterprises

The Company has not received any intimation from the suppliers regarding their status under the Micro Small and Medium Enterprises Act 2006 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act, have not been given.

3. Employee Stock Option Scheme

The ESOS compensation committee of the Company at their meeting held on December 7, 2010 has granted 5, 77,683 stock options to the eligible employees (38), under the Employees Stock Option Scheme-2010 (ESOS-2010) at the exercise price of Rs.55.70 per option, being the latest available price on the stock exchange prior to the date of grant. The vesting of the option granted would be graded over a period of four years i.e. on December 15, 2011, October 1, 2012, October 1, 2013, October 1, 2014, with the exercise period being 2 years from the date of vesting. The Company has applied the intrinsic value method for accounting of such options.

4. Segmental Reporting

The Company has only two reportable segment of providing oilfield related services and hence no separate segment disclosure made.

5. Leases

The Company has various operating lease for Office and other premises that are renewable on a periodic basis by mutual consent on mutually agreeable terms and cancellable at its option.

6. Employee Benefits

a) Defined Contribution Plan

The Company makes Provident Fund and contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Company recognised Rs 1,736,180 (March 31, 2011: Rs. 1,564,094) for provident fund contributions in the profit and loss account. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans

The Company makes annual contributions to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

Note:

a. Discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

b. As the investment is with the Insurance Company, list of investment is not available, so expected return is assumed to be available on risk free investment like PPF.

c. The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

d. 100% of plan assets are invested in group gratuity scheme offered by LIC of India.

7. Current assets and loans and advances

In the opinion of the Board of Directors the current assets, loans and advances have a value realisation in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

As a matter of prudence, Company has made provision of Rs. 73,94,571/- towards doubtful recovery of inter-corporate loan.

8. The Company prepares and presents its financial statements as per Revised Schedule VI to the Companies Act, 1956, as applicable to it from time to time. In view of revision to the Schedule VI as per a notification issued during the year by the Central Government, the financial statements for the financial year ended March 31, 2012 have been prepared as per the requirements of the Revised Schedule VI to the Companies Act, 1956. The previous year figures have been accordingly regrouped/re-classified to conform to the current year's classification.


Mar 31, 2011

1 Previous year's figures have been regrouped / recast wherever necessary to conform to current year's presentation.

2 Contingent liabilities (Amt in Rs.)

March 31, 2011 March 31, 2010

Outstanding balance on bank guarantees 14,30,32,923 11,66,10,843

Open letter of credit(LCs) given by the bank on behalf of the Company - 3,03,19,011

Demand for Income Tax contested by the Company 1,48,71,198 8,10,922

4 Information in respect of related parties

During the year, the Company entered into transactions with the related parties. List of related parties alongwith nature and volume of transactions and balances at 31st March, 2011 are presented below:

(a) Subsidiary AOSL Petroleum Pte Ltd

(b) Key Management Personnel Mr. Avinash Manchanda - Managing Director

Mr. Miten Manchanda - General Manager [ Seismic Support Services ]

(c) Relatives of Key Management Personnel Mr. Miten Manchanda - Son of Mr. Avinash Manchanda

(d) Associates Nimit Finance Private Limited

5 The Company has not received any intimation from the suppliers regarding their status under the Micro Small and Medium Enterprises Act, 2006 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act, have not been given.

6 The Company has only one reportable primary segment of providing oilfield related services and hence no separate segment disclosure made.

7 As a matter of prudence, Company has made provision of Rs.6,98,07,577/- towards doubtful recovery of inter-corporate loan.

8 The ESOS compensation committee of the company at their meeting held on 7th December 2010 has granted 5,77,683 stock options to the eligible employees (38),under the Employee Stock Option Scheme-2010 (ESOS-2010) at the exercise price of Rs.55.70 per option, being the latest available price on the stock exchange prior to the date of grant.The vesting of the options granted would be graded over a period of four years i.e on 15th December 2011, 1st October 2012,1st October 2013 and 1st October 2014, with the exercise period being 2 years from the date of vesting.The Company has applied the intrinsic value method for accounting of such options.

9 The Company has a net investment of Rs. 80.67 lacs by way of an advance given, in its wholly owned subsidiary AOSL Petroleum Pte Ltd. as of the year end. AOSL Petroleum Pte Ltd.'s net worth is negative however the management considers this entity to be of long term strategic importance in its potential global business plans and hence no provision has been made in the accounts for any possible losses, which may arise on this account.

 
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