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Notes to Accounts of Interlink Petroleum Ltd.

Mar 31, 2015

NOTE 1

In view of the signing of MOU with Sun Petrochemicals Limited and the performance of the fields of the Company, the indications for impairment exist as per AS-28 issued by the ICAI. Considering the uncertainty of recoverability of the carrying amount of CVyiP at Baola and Modhera field, Impairment loss amounting to ' 837,821,141/- for both the fields have been charged to the Statement of Profit & Loss as Exceptional Items, as assessed by the management on the basis of certain assumptions as per AS-28 issued by the ICAI.

NOTE 2

The company has made provision for impairment loss amounting to Rs.837,821,141/- in the financial statements due to which the company has accumulated losses and its net worth has been fully eroded which indicate the existence of material curtailment of the operations that cast a substantial doubt on the Company's ability to continue as a going concern. However company has the plan to remain in operations in Exploration & Production of natural resources and allied activities. Accordingly the company has entered into Memorandum of Understanding for transferring of its rights of both the fields which will give revenue to the company on success, Hence financial statements has been prepared on the assumption of going concern.

NOTE 3

Lives of certain fixed assets have been revised consequent upon the changes in useful life of assets in Schedule- II of Companies Act, 2013. Depreciation of Rs.411,405/- on account of assets, whose useful life is already exhausted before 01.04.2014, has been adjusted against opening Profit & Loss Account.

NOTE 4

During the year, the Company has entered into a binding Memorandum of Understanding dated 24.03.2015 with Sun Petrochemicals Private Limited through its exploration and Production division, Sun Oil & Natural Gas, for transfer and assignment of the Production Sharing Contract in respect of its participating interests over the Modhera and Baola fields, for further development, subject to approval of Directorate General of Hydrocarbons. An application in this regard is filed to Directorate General of Hydrocarbons and is under consideration and consent is awaiting.

NOTE 5

Taking into consideration the financial health of the company, the Promoter Company has agreed for not to insist for payment till the improvement of the financial health of the Company. Therefore the interest on ECBs for the period from 1st October 2014 to 31st March, 2015 has been waived off and has not been provided.

NOTE 6: CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

a. Contingent liabilities amounting to Rs. 8 Lacs towards legal case filed by Mr. Vinayakrao S. Desai against the company before the Ahmadabad High Court has not been acknowledged by the Company as the Company expects the verdict in its favor.

b. The Income-Tax assessments of the Company have been completed up to the Assessment Year 2012-13 (in previous Year up to 2011-12). Demand has been raised of Rs.37.33 Lacs (Previous Year: Rs.40.58 Lacs) up to the said Assessment Year, against which the company has filed appeal before Appellate authority.

NOTE 7:

The Company is engaged in extraction of crude oil and natural gas only and therefore there is only one reportable segment in accordance with Accounting Standard 17 on Segment Reporting.

NOTE 8:

The Company has substantial carried forward losses and unabsorbed depreciation. Hence, there is no deferred tax liability arising at the end of the current year. Further, in view of the absence of virtual certainty of realization of carried forward tax losses, the Company has not created any deferred tax asset as envisaged in Accounting Standard-22 on Taxes of Income issued by The Institute of Chartered Accountants Of India.


Mar 31, 2014

The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

a. Foreign Currency Loan - From Banks, is taken from DBS Bank, Singapore for which the security has been provided by M/s Jit Sun Investments Pte Ltd., a promoter group Company, detail of the External Commercial Borrowings (ECB) are as follows:

I. During the financial year 2010-11 & 2011-12, the Company had drawn the ECB of US$ 8 Million against the facility agreement entered in to with DBS Bank Ltd., Singapore which carries interest at LIBOR plus 275 basis points. The loan agreement is for tenure of 5 years with 2 years moratorium for repayment of the principal amount that is repayable in 8 equal quarterly installments starting from the 39th month from the month of withdrawal. Interest is, however, paid every quarter as it falls due.

II. During the financial year 2012-13 the Company had drawn the ECB of US$ 1 Million against the facility agreement entered in to with DBS Bank Ltd., Singapore which carries interest at LIBOR plus 300 basis points. The loan agreement is for tenure of 4 years with 2 years moratorium for repayment of the principal amount that is repayable in 8 equal quarterly installments starting from the 27th month from the month of withdrawal. Interest is, however, paid every quarter as it falls due.

b. Foreign Currency Loan - From Others, is from Loyz Oil Pte Ltd, the Company''s promoter shareholder, and it includes US$ 40,873.90 accrued interest upto 31st March 2014.

Foreign currency loan drawn during the financial year 2012-13 from Loyz Oil Pte Ltd of US$ 1.25 Million, carries interest at LIBOR plus 300 basis points. The loan agreement is for tenure of 5 years with 3 year moratorium for repayment of the principal amount that is repayable in 8 equal quarterly installments starting from the 39th month from the month of withdrawal. Interest payable shall starts accruing with respect to outstanding amount from the date of draw down and interest for moratorium period is payable in 8 equal quarterly installments starting from the 39th month from the month of withdrawal and other interest is payable every quarter as it falls

c. A part of the Long Term Borrowings that is due for repayment within twelve months from 31st March 2014 amounting to Rs. 262,893,750/- (Previous Year Rs. Nil) has been transferred to Other Current Liabilities. The balance has been shown under the head "Long Term Borrowings".

d. The entire loan drawn till end of the year has been shown under the head "Long Term Borrowings"after adjusting for the notional foreign exchange loss of Rs.145,118,690/- (Previous year Rs. 86,662,500/-).

e. The loan, interest and effect of foreign exchange fluctuation have been dealt with in the books of accounts in accordance with Accounting Standards 11 & 16.

NOTE 1: CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

i. Contingent liabilities amounting to Rs. 8 Lacs towards legal case filed by Mr. VinayakRao S Desai against the companybefore the AhmadabadHigh Court has not been acknowledged by the Company as the Company expects the verdict in its favor.

ii. The Income-Tax assessments of the Company have been completed up to the Assessment Year 2011-12 (in previous Year up to 2010-11). Demand has been raised of Rs. 40.58 Lacs (Previous Year: Rs. 11.38 Lacs) up to the said Assessment Year, against which the company has filed appeal before Appellate authority. The demand of Rs. 40.58 lacs are new demands. The Company has filed an appeal with CIT (Appeals), Vadodara and is confident of getting the appeal in its favor as advised by the Company''s Tax Consultant. Hence, no provisionhas been made. The demand of Rs.11.38 lacs outstanding in the previous year have been rectified and withdrawn.

NOTE 2:

The Company is engaged in extraction of crude oil and natural gas only and therefore there is only one reportable segment in accordance with Accounting Standard 17 on Segment Reporting.

NOTE 3:

The Company has substantial carried forward losses and unabsorbed depreciation. Hence, there is no deferred tax liability arising at the end of the current year. Further, in view of the absence of virtual certainty of realization of carried forward tax losses, the Company has not created any deferred tax asset as envisaged in Accounting Standard-22 on Taxes of Income issued by The Institute of Chartered Accountants of India.


Mar 31, 2013

NOTE 1: CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

i. Contingent liabilities amounting to T8 Lacs towards legal case filed by Mr. Vinayakrao S Desai against the company before the Ahmadabad High Court has not been acknowledged by the Company as the Company expects the verdict in its favor.

ii. The Income-Tax assessments of the Company have been completed up to the Assessment Year 2010-11 (Financial year 2009-10). The additional demand of tax of T11.38 Lacs (Previous Year: Nil) up to the said Assessment Year is towards classification of business income as other income and has been made erroneously passed by the Assessing officer. The Company has filed an appeal with CIT (Appeals), Vadodara and is confident of getting the appeal in its favor as advised by the Company''s Tax Consultant. Hence, no provision has been made.

NOTE 2:

The Company is engaged in extraction of crude oil and natural gas only and therefore there is only one reportable segment in accordance with Accounting Standard 17 on Segment Reporting.

NOTE 3:

The Company has substantial carried forward losses and unabsorbed depreciation. Hence, there is no deferred tax liability arising at the end of the current year. Further, in view of the absence of virtual certainty of realization of carried forward tax losses, the Company has not created any deferred tax asset as envisaged in Accounting Standard-22 on Taxes of Income issued by The Institute of Chartered Accountants Of India.

NOTE 4:

a. Value of Raw Materials Consumed: NIL

b. Value of Store & Spares Consumed:


Mar 31, 2012

NOTE 1: SHARE CAPITAL

Other Information:

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period There is no change in the number of shares outstanding at the beginning and end of the financial year.

b. Terms/Rights attached to the Equity Shares

The Company has only one class of equity shares having a par value of 10/- per share, each holder of equity shares is entitled to one vote per share.

NOTE 2: LONG-TERM BORROWINGS

a. During the year, the Company had drawn the balance amount of US$ 4 Million (173,160,000/-) against the facility agreement entered in to with DBS Bank Ltd, Singapore during the previous year for an External Commercial Borrowing (ECB) of US$8 Million, for the purpose of carrying out further appraisal and development work in the Baola and Modhera Oilfields, in which the Company has 100% participating interest.

b. Foreign currency loan carries interest at LIBOR plus 275 basis points. The loan agreement is for tenure of 5 years with

3 year moratorium for repayment of the principal amount that is repayable in 8 equal quarterly installments starting from the 39th month from the month of withdrawal. Interest is, however, payable every quarter as it falls due.

c. The loan has been guaranteed by M/s Jit Sun Investments Pte Ltd., a group Company.

d. The entire loan after adjusting for the foreign exchange loss of Rs. 58,920,000 (Previous year Rs. 1,480,000) on the

principal amount has been shown under the head "Long Term Borrowings".

e. The loan, interest and effect of foreign exchange fluctuation have been dealt with in the books of accounts in accordance with Accounting Standards.

NOTE 3: SHORT-TERM PROVISIONS

a. Provision towards employee benefits was Nil as the Company has obtained a policy under the group gratuity scheme from Life Insurance Corporation of India during the year. Accordingly, there is no year-end liability towards the same.

b. Other provisions represent the estimate for various expenses in the normal course of business.

Note: since Baola field Production rights (Gross amount Rs. 1,535,000) have been fully amortised, the same is not reflected in the above table.

Impairment of Assets:- The Company has no independent Cash Generating Units (CGU) in the above assets and hence no impairment test has been carried out.

NOTE 4(II): WORK-IN-PROGRESS & INTANGIBLE ASSETS UNDER DEVELOPMENT

a. As per Significant Accounting Policy (g), the Company, during the year, has capitalized as a part of "Capital Work

in-Progress/Intangible Assets Under Development", an amount of 330,569,910/- (Previous year Rs. 218,774,211/-) , being the expenses incurred in the appraisal/development of two oil/gas fields viz. Baola and Modhera.

b. The amount will be transferred to "Producing Property" as and when the underlying fields are ready for commencement of commercial production.

c. The above includes Borrowing cost (net of adjustment arising from interest earned on temporary cash surplus from External Commercial Borrowing) amounting to Rs. 2,582,861/- (Previous year Nil).

d. As per Significant Accounting policies (o)(iii), foreign exchange fluctuation of Rs. 57,947,615/- (Previous year Rs. 1,480,000) pertaining to principal and interest amount of loan has been capitalized and included in Intangible Assets Under Development.

e. As the oil and gas fields are still under appraisal, no impairment test has been carried out.

NOTE 5: SHORT TERM LOANS AND ADVANCES

a. Due from subsidiary represents the amount spent by the Company for the maintenance of its

wholly owned subsidiary, Interlink Petroleum Pte Limited, Singapore. The maximum balance at any time during the year is Rs. 339,734/- (Previous year Rs. 218,268/-).

b. In the opinion of management, the current assets including loans, advances, deposits etc, is fully realizable in the normal course of business.

c. The balances of loan & advances as appearing above are fully confirmed.

NOTE 6: Other Current Assets

a. The VAT credit of Rs. 94,952 has been realized to the extent of Rs. 46,016/- and the balance has been charged to Statement of Profit and Loss.

b. Balance with Government Authorities represents the advance tax resulting from tax deducted at source from interest earned during the year and excess service tax deposited that is fully adjustable against future liability.

NOTE 7: OTHER INCOME

a. Interest on Short term bank deposits represents interest earned on deposit from Company's own funds.

b. The interest earned, on Short term bank deposit made from temporary cash surplus out of External Commercial Borrowings, during the year amounting to Rs. 9,879,702/- (Previous year Rs. 624,618/-) has been adjusted in Intangible Assets Under Development as per Accounting Standard 16 and is not included above (Refer Note 8 II).

NOTE 8: EMPLOYEE BENEFITS EXPENSES

a. Salaries and wages include payment for gratuity to Life Insurance Corporation of India.

b. The gross employee benefits expenses during the year is Rs. 25,948,947 (Previous year Rs. 31,692,284), of which an amount of Rs. 23,411,326 (Previous year Rs. 28,562,189) was capitalize as a part of "Intangible assets under development" (Refer Note 8(II)) as per accounting policy (Refer policy (g))being the amount spend towards appraisal and development of the oil & gas fields.

c. During the year on 14th October, 2011 Mr. Gopal Srinivasan appointed as a whole time director. The Company has made an application for approval of remuneration of whole time director. The approval is still awaiting.

NOTE 9: RELATED PARTY DISCLOSURE

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below: i. List of related parties where control exists and related parties with whom transactions have taken place and relationships:

Sl No. Name of Related Party Relationship

1 Loyz Energy Limited

2 Jit Sun Investments Pte Limited Group Companies

3 Loyz Oil Pte Limited

4 Interlink Petroleum Pte. Limited

5 Gopal Pallipuram Srinivasan Key Managerial Personnel 6 Kenneth Gerrad Pereira

7 Vijay Misra Directors & Relatives

8 Sushila Devi

NOTE 10:

The Company is engaged in extraction of crude oil and natural gas only and therefore there is only one reportable segment in accordance with Accounting Standard 17 on Segment Reporting.

NOTE 11:

The Company has substantial carried forward losses and unabsorbed depreciation. Hence, there is no deferred tax liability arising at the end of the current year Further, in view of the absence of virtual certainty of realization of carried forward tax losses, the Company has not created any deferred tax asset as engaged in Accounting Standard-22 on Taxes of Income issued by The Institute of Chartered Accountants of India.

NOTE 12:

a. Value of Raw Materials Consumed: NIL

NOTE 13: PREVIOUS YEAR FIGURES

Till the year ended 31st March 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.

Statement pursuant to section 212 of the Companies Act, 1956 relating to Subsidiary Company

1. Name of the Subsidiary : Interlink Petroleum Pte. Ltd.

2. Financial year/period ended on : 31st March, 2012

3. No. of equity shares held by Interlink Petroleum : 2 (Two) Equity Shares of Limited in the Subsidiary SGD $ 1 each fully paid

4. Extent of interest of Interlink Petroleum Limited in the capital of : 100% the subsidiary

5. Net Aggregate amount of profits of the subsidiary so far as it concerns the members of Interlink Petroleum Limited, and is not dealt with in the Company's accounts

(a) Profit/(Loss) for the financial year ended on : SGD $ (2,739), (Rs.(110,892)) 31st March, 2012 of the subsidiary.

(b) Profit/(Loss) for the previous financial years : SGD $ (7,847),(Rs.(265,856)) of the subsidiary since it became subsidiary of Interlink Petroleum Limited.

6. Net Aggregate amount of Profit/(Loss) of the subsidiary so far as dealt with or provision is made for those Profit/(Loss) in Interlink Petroleum Limited's accounts.

(A) For the subsidiary's financial year ended on : NIL 31st March, 2012

(b) For its previous financial years since it became : NIL the subsidiary of Interlink Petroleum Limited


Mar 31, 2011

1. During the year, the Company has entered into a facility agreement with DBS Bank Ltd., Singapore for an External Commercial Borrowing (ECB) of US$8 Million, at an interest rate of LIBOR plus 275 basis points, for the purpose of carrying out further development work in the Baola and Modhera Oilfields, in which the Company has 100% participating interest. The agreement is for tenure of 5 years with 3 year moratorium for repayment of the principal amount that is repayable in 8 equal quarterly installments starting from the 39th month from the month of withdrawal. Interest is, however, payable every quarter as it falls due. The security for the loan is provided by M/s Jit Sun Investments Pte Ltd., the Company's promoters'. The Company has drawn the first installment of US$4 Million (Rs.17,71,20000) on the 23rd February 2011, which is shown under the head "Unsecured Loan" after adjusting for the foreign exchange fluctuation. The loan, interest and effect of foreign exchange fluctuation have been dealt within the books of accounts in accordance with Accounting Standards 11&16.

2. The Company has substantial carried forward losses and unabsorbed depreciation. In view of the absence of virtual certainty of realization of carried forward tax losses, the Company has not created any deferred tax asset / liabilities as envisaged in AS-22 on Taxes of Income issued by The Institute of Chartered Accountants Of India.

3. Impairment of Assets :- The Company has examined carrying cost of its identified Cash Generating Units (CGU) by comparing present value of estimated future cash flows from such CGUs, in terms of Accounting Standard – 28 on Impairment of Assets, according to which no provision for impairment is required as assets of none of the CGUs are impaired as on 1st April, 2010. There have been no indications of impairment during the financial year ended 31st March, 2011.

4. In line with the Policy no. (f) -Significant Accounting Policies Schedule 14, the Company, during the year, has capitalized as "Capital Work-in-Progress " an amount of Rs. 2187.74Lacs (Previous year Rs. 1090.24 Lacs) representing expenses incurred in the appraisal/development of two oil/gas fields viz. Baola and Modhera. The amount will be transferred to "Producing Property" as and when the underlying fields are ready for commencement of commercial production.

5. The balances of debtors, creditors and loan & advances appearing in the balance sheet are subject to reconciliation and confirmation.

6. In the opinion of directors, the current assets including loans, advances, deposits etc, shall realize the values shown there under, if realized in the normal course of business

7. Sundry Creditors include Rs. Nil (Previous Year Rs. Nil) due to small scale industrial undertakings to the extent such parties have been identified by the Management from available information.

8. The Company has not received any intimation from the 'suppliers' regarding their status under the Micro, Small and Medium Enterprises development Act, 2006 and hence disclosures if any relating to amounts unpaid as at March 31, 2011 together with interest paid / payable as required under the said Act, have not been given.

9. The Company has made a provision of Rs.14.32 Lacs during the year (Previous Year Rs. 8.55) towards accrued Gratuity liability in conformity with Accounting Standard-15 issued by the Institute of Chartered Accountants of India. Part of the provision made amounting to Rs.12.94 Lacs (Previous Year Rs. 7.79 Lacs) has been capitalized as a Part of Capital Work in Progress. The Company does not have a policy for encashment of earned leave. Accordingly, no provision has been made for leave encashment as required to bemade.

10. The company has submitted bank guarantees worth Rs298.72 Lacs to Government of India for 10% of the budget for the year 2010-11, as required under the Production Sharing Contract for Modhera Field. Towards this, the company has provided alien on Term Deposits with bank worth Rs.308.93 Lacs.

11. Managerial Remuneration paid to Dr. Kenneth G. Pereira, Managing Director was in receipt of a salary of Rs.12 (Previous Year Rs. 8) only during the year at the rate of Rs.1 per month

12. The Company is engaged in extraction of natural oil and gas only and therefore there is only one reportable segment in accordance with Accounting Standard 17on Segment Reporting.

13. The Company has substantial carried forward losses and unabsorbed depreciation. In view of the absence of virtual certainty of realization of carried forward tax losses, the Company has not created any deferred tax asset / liabilities as envisaged in Accounting Standard-22 on Taxes of Income issued by The Institute of Chartered Accountants Of India.

14. List of Related Parties:

a. Associate Companies : Sim Siang Choon Limited

Jit Sun Investments Pte Limited

Loyz Oil Pte Limited

Loyz Energy Pte Limited

Subsidiary : Interlink Petroleum Pte. Limited, Singapore

b. Key Management Personnel and Related Parties

Managing Director : Dr. Kenneth G.Pereira

Director : Mr. Vijay Misra

Mother of Director : Mrs. Sushila Devi

Wife of Director : Mrs. Harpriya Misra

15. Additional Information pursuant to the provisions of paragraph 3, 4C and 4D of part II of Schedule VI of the Companies Act, 1956.

b. Consumption of Raw Materials: NIL

16. Previous year figures have been regrouped and rearranged wherever necessary in order to make them comparable with that of the current year.


Mar 31, 2010

1. In line with the Policy no. (f) of (A) - Significant Accounting Policies of Schedule 14, the Company, during the year, has capitalized as Capital Work-in-Progress Exploration Expenses an amount of Rs.1090.24 Lacs (Previous year Rs.173.00 Lacs). The amount will be transferred to Producing Property as and when the underlying fields are ready for commencement of commercial production.

2. Impairment of Assets :- The Company has examined carrying cost of its identified Cash Generating Units (CGU) by comparing present value of estimated future cash flows from such CGUs, in terms of Accounting Standard 28 on Impairment of Assets, according to which no provision for impairment is required as assets of none of CGUs are impaired as on 1st April, 2009. There have been no indications of impairment during the financial year ended 31st March, 2010.

3. During the year, the Company has written off Fixed Assets comprising Furniture and Fixture, Computers and Office Equipment having written down value of Rs.4.40 Lacs (Previous Year Rs. Nil) as the same has no further useful life.

4. (a) During the year, the Company had re-classified the amounts lying under the head Unsecured Loans amounting to Rs.114.23 Lacs as Current Liabilities.

(b) The Company had made a payment of Rs.39 Lacs in full and final settlement of the amount due towards inter-corporate deposit of Rs. 78 Lacs, which was transferred to Current Liabilities as stated in 7 (a) above. The balance amount of Rs.39 Lacs has been shown as an income during the year.

5. (a) During the year, the Company has issued 6,520,000 Equity Shares having face value of Rs.10 per share on preferential allotment basis at a premium of Rs.23 per share. Accordingly, the amount received against the same has been accounted for under the Head Share Capital Account and Share Premium Account respectively. Simultaneously, the Company also enhanced its Authorised Share Capital from Rs.1900 Lacs in the previous year to Rs.3000 Lacs.

(b) During the year, the Company forfeited 8800 shares towards which an amount of Rs.44,000 remained as calls-in-arrears. An amount of Rs.44,000 that was received against the shares which was remaining under the head Share Capital Account was forfeited and transferred to Share Forfeiture Account under the head Reserves and Surplus.

6. The Company is engaged in extraction of natural oil and gas only and therefore there is only one reportable segment in accordance with Accounting Standard 17.

7. The Company has substantial carried forward losses and unabsorbed depreciation. In view of the absence of virtual certainty of realization of carried forward tax losses, the Company has not created any deferred tax asset / liabilities as envisaged in AS-22 on Taxes of Income issued by The Institute of Chartered Accountants Of India.

*Auditors remuneration excludes Rs.1.40 Lacs paid to the proprietary firm of a partner (Previous year Rs.1.20 lacs) and Rs.0.40 Lacs paid to Auditors Firm for certification work, which is transferred to Capital Work In Progress as the underlying payment pertains to expenses incurred for the development of Baola and Modhera fields.

* Kenneth Gerard Pereira, Managing Director, received a salary of Rs.8 only during the year at the rate of Rs.1 per month from 4 August 2009, the date of his appointment.

8. Additional Information pursuant to the provisions of paragraph 3, 4C and 4D of part II of Schedule VI of the Companies Act, 1956.

9. In the opinion of directors, the current assets including loans, advances, deposits etc, shall realize the values shown there under, if realized in the normal course of business.

10. The balances of debtors, creditors and loan & advances appearing in the balance sheet are subject to reconciliation and confirmation.

11. a) Sundry Creditors include Rs. Nil ( Previous Year Rs. Nil) due to small scale industrial undertakings to the extent such parties have been identified by the Management from available information.

b) The Company has not received any intimation from the ‘suppliers’ regarding their status under the Micro, Small and Medium Enterprises development Act, 2006 and hence disclosures if any relating to amounts unpaid as at March 31, 2010 together with interest paid / payable as required under the said Act, have not been given.

12. The Company has made a provision of Rs.8.55 Lacs during the year (Previous Year Rs. Nil) towards accrued Gratuity liability in conformity with AS15 on “Accounting for Retirement Benefits” issued by the Institute of Chartered Accountants of India. Part of the provision made amounting to Rs.7.79 Lacs (Previous Year Rs. Nil) has been capitalized as a part of Capital Work in Progress. The Company does not have a policy for encashment of earned leave. Accordingly, no provision has been made for leave encashment as required to be made.

13. The company has submitted bank guarantees worth Rs.72.17 Lacs to Government of India for 10% of the budget for the year 2009-10, as required under the Production Sharing Contract for Modhera Field. Towards this, the company has provided a lien on Term Deposits with bank worth Rs.78.91 Lacs.

14. Previous year figures have been regrouped and rearranged wherever necessary in order to make them comparable with that of the current year.

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