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Notes to Accounts of Selan Exploration Technology Ltd.

Mar 31, 2023

13.1 No trade receivables are due from the directors or officers of the Company either severally or jointly with any other person. No trade receivables are due from firms or private companies respectively in which any director is a partner, a director or member.

13.2 The Company is exposed to credit risk from its operating activities, primarily trade receivables which the Company minimizes by dealing with high credit rating counterparties. Outstanding customer receivables are regularly monitored on individual basis and are reconciled at regular intervals. Impairment analysis of trade receivables is done at each reporting date on an individual basis. The expected loss recognised at each reporting date is Nil.

15.1 This amount has been deposited with banks under section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipment''s and installations in a manner agreed with the Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment, etc. This amount is considered as restricted cash and hence not considered as ''Cash and cash equivalents''.

16.1 There are no amount recoverable from directors or other officers of the Company either severally or jointly with any other persons. No amount recoverable from firms or private companies respectively in which any director is a partner, a director or a member, except ^ 0.59 Lakh (previous year Nil) are recoverable from a private company in which a director of the Company is director.

35.2 There is no income or transaction which has not been disclosed or recorded in the books of accounts which has been surrendered or disclosed as income in the tax assessment during the year 31st March, 2023 and 31st March, 2022.

		(? in Lakhs)
Particulars	31 March, 2023	31 March, 2022
38 COMMITMENTS AND CONTINGENT LIABILITIES A Commitments Estimated amount of Contracts remaining to be executed on	66.86	5.17
Capital Account (Net of Advances) and not provided for B Contingent Items a) Claims against the Company not acknowledged as debts: - On account of calculation of Profit Petrolium related to Lohar Field (refer note (c) below)	1,037.45	538.52
- Demand of Income Tax for A.Y. 2016-17 and 2020-21 (under Appeals)	35.26	Nil
- National Calamity Contingency Duty on production of Crude Oil from Karjisan Oil Field from May 2017 to March 2021	4.48	Nil

b) In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, Inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the investment multiple in the preceding year is less than 3.5. The Company received an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has been paying the Profit Petroleum as per the order of the Delhi High Court although it has appealed against this to the Division Bench of the Delhi High Court and the same is sub judice.

c) In January, 2022, the Company had received a query from Directorate General of Hydrocarbons (DGH) on calculation and deposit of Profit Petroleum for Lohar field for the first and second quarters of FY 2021-22. Further, during the current year, Company has also received a demand letter dated 12th October 2022, from DGH, on payment of difference of short payment of Lohar Profit Petroleum post extension of Production Sharing Contract (PSC) in March 2020, along with interest. The same was refuted by the Company, and duly responded with reference to the applicable profit petroleum provisions under the PSC Addendum signed between MoPNG and the Company, on extension of lease for Lohar field beyond March 2020. The said matter is sub - judice.

d) The Company, under a Technical Manpower Service Contract, shall reimburse Gratuity, if any, paid by the manpower supply contractor to contractual labour employed in Bakrol, Lohar and Karjisan fields, under the Payment of Gratuity Act, 1972. As per the contractual terms, the said gratuity needs to be paid to the contractual labour by the manpower supply contractor, which shall then be reimbursed by the Company. The said liability arises due to the termination of the contract with the existing manpower supply agency and appointment of a new manpower service agency. Pursuant to the Contract, the company has received a demand from the previous manpower supply agency for payment of gratuity to the workers who have been in continuous engagement for a period exceeding the period, in accordance with the Gratuity Act. The Company is currently in the process to evaluating the authenticity of the said claim, in accordance with the contractual provisions.

In respect of the matters in Note No. 38-B, future cash outflows are determinable only on receipt of judgements/ decisions pending at various forums/ authorities. Furthermore, there is no possibility of any reimbursements to be made to the Company from any third party.

39 NOTE ON PRICING OF CRUDE OIL SUPPLIED FROM KARJISAN FIELD

The Company had received an interim price for the oil produced from Karjisan field. As per the terms of the Karjisan PSC, the interim price is 70% of the Brent price. Negotiations with Indian Oil Corporation Limited (IOCL) are ongoing to arrive at a final price, so that payment of differential included in trade receivables amounting to '' 85.71 Lakhs (P.Y. '' 85.71 Lakhs) can be realised by the Company, inclusive of amounts related to reimbursement of VAT.

40 Disclosures as required for loans given, investments made and guarantee given covered u/s 186(4) of the Companies Act, 2013 and pursuant to SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015 :

During the year, Company has not given any loan, security or provided any guarantee and for investments made refer Note No. 8 and 12 of the financial statements.

II Defined Benefit Plans Gratuity

(a) The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service subject to a maximum of ^ 20 Lakhs. Vesting occurs upon completion of five continuous years of service in accordance with Indian Law. The Company has taken a policy with Life Insurance Corporation of India approved by IRDA for meeting the accruing liability on account of gratuity. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

(k) Expected contribution to the defined benefit plan for the next annual reporting period

The Company expects to contribute '' Nil (previous year '' 35.00 Lakhs) to its gratuity fund in 2022-23.

(l) Description of Risk Exposures

Valuation are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risk as follows:-

(a) Salary Increases - Actual Salary increase will increase the plan''s liability. Increase in salary, increase in rate assumption in future valuation will also increase the liability.

(b) Investment Risk - Actual return on plan asset may be lower than the discount rate assumed at the last valuation date which can increase the liability.

(d) Mortality and Disability - Actual death and disability cases proving lower or higher than asssumed in the valuation can impact the liabilities.

(e) Withdrawal - Actual withdrawal proving higher or lower than assumed withdrawal and change of withdrawal rates at subsequent valuations can impact plan''s liability.

III Other long-term employee benefits:

Leave encashment

The Company provides for the expected cost of accumulating paid leave which can be carried forward and used in future periods by the employees. The obligation for accumulating paid leaves has been recognised at the end of the reporting period. W.e.f. 1st September 2022, the Company has discontinued the leave-encashment facility to its employees.

47 DISCLOSURES AS PER IND AS 116 ''LEASES'' ARE AS FOLLOWS:

The Company''s significant leasing arrangements are in respect of leases for land, building, office premises etc. These leasing arrangements which are cancellable ranging between 11 months and 9 years generally, or longer, and are usually renewable by mutual consent on mutually agreed terms. The Company has used the following practical expedients for lease accounting^. Applying a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar remaining lease term.2. Applied the exemption not to recognized right of use assets and liabilities for leases with less than 12 months of lease term and low value leases.3. Used hindsight in determining the lease term whether the contract contained options to extend or terminate the lease.

(e) The weighted average incremental borrowing rate applied to lease liabilities is 10.00%.

(f) The Company does not face a significant liquidity risk with regards to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

48 FAIR VALUE MEASUREMENT

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The following methods and assumptions were used to estimate the fair values:

(i) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

(ii) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

(c) During the year ended 31st March 2023 and 31st March 2022, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

49. FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprises lease liabilities, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investments, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company''s activities expose it to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised below :

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk and commodity price risk. Financial instrument affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual funds, NCDs and MLDs. To manage such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.

Interest rate sensitivity

The Company has not availed any borrowings (floating or fixed interest) and also not having substantial long term fixed deposits and other investments, hence is not exposed to interest rate risk.

(ii) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The entity has limited foreign currency exposure which are mainly on account of purchases and imports. The Company manages its foreign currency risk by having natural hedge as the revenue on sale of oil and gas is determined and paid in equivalent US dollars.

The Company does not have any foreign currency exposure as well as no hedging instruments outstanding as at 31 March 2023 and 31 March 2022.

(iii) Commodity price risk

The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any oil price hedge. The impact of a falling oil price is however partly mitigated via the production sharing formula in the PSCs, whereby the Company''s share of gross production increases in a falling oil price environment due to the cost recovery mechanism. Gas prices are fixed for a certain duration of time and the same are linked to policy guidelines issued by the Government.

(b) Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to individual group of customers. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The ageing analysis of the receivables (gross of provisions) have been considered from the date the invoice falls due:

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company''s policy. Investments of surplus funds are made only with the institutions having good credit ratings. Credit worthiness of all theses institutions are reviewed by the Management on a regular basis. All balances with banks and financial institutions is subject to low credit risk due to the good credit ratings assigned to these entities.

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.

In the management of liquidity risk, the Company monitors and maintains a level of cash and bank balances deemed adequate by the management to finance the Company''s operations and mitigate the effects of fluctuations in cash flow. The table below summarises the maturity profile of the Company''s financial liabilities at the end of the reporting period based on contractual undiscounted repayment obligations.

50 CAPITAL MANAGEMENT

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings.

51 IMPAIRMENT OF ASSETS AND CUSTOMER/VENDOR BALANCES

(i) As a policy, the Company annually assesses the impairment of property plant and equipment (PPE), Development of Hydrocarbon Properties and other non-current assets by comparing the carrying value of PPE, Development of Hydrocarbon Properties and other non-current assets with its fair value. In case the fair value is less than the carrying value an impairment charge is created. Management has concluded that there is no impairment of PPE, Development of Hydrocarbon Properties and other assets during the current year and in previous year.

(ii) Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

54 Additional regulatory information required by Schedule III of Companies Act, 201354.1 Relationship with Struck off Companies:

There are no transaction with the companies whose name has been struck off under section 248 of The Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31st March, 2023 and the year ended 31st March, 2022.

54.2 Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

54.3 Loans or Advances to Promoters, Directors, KMPs and the related parties

The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties (as defined under the Act), either sevarally or jointly with any other person during the year ended 31st March, 2023 and the year ended 31st March, 2022.

54.4 Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any Scheme of Arrangements, hence this clause not applicable to the Company.

54.5 Utilisation of Borrowed Funds and Share Premium

(i) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities including foreign entities (intermediaries) with the understanding that the Intermediaries shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

(ii) The Company has not received any fund from any persons or entities, including foreign entities (funding party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

54.6 Willful Defaulter

The Company has not been declared as a willful defaulter by any bank or financial Institution or other lender.

55 "Presentation of Negative Amounts"

Unless otherwise stated or the context requires it to be interpreted otherwise, figures in bracket in the financial statements

represent negative amounts.

56 Previous year figures have been rearranged / regrouped / reclassified wherever necessary. Further, there are no material

regroupings / reclassifications during the year.

Mar 31, 2018

1 Corporate Information

Selan Exploration Technology Limited (The ''Company'') was incorporated in India on 5th July, 1985. The Company is a public limited company whose shares are listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The registered office is located at J-47/1, Shyam Vihar, Dindarpur, Najafgarh, Delhi -110043. The company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GOI) for Bakrol, Indora, Lohar, Ognaj and Karjisan fields.

2 Authorization of Financial Statements

The financial statements of the Company for the year ended 31 March 2018 were authorised for issue in accordance with a resolution of the Board of Directors approved on 15 May 2018.

There are no debts due by directors or other officers of the Company or any of them either severally or jointly with any other persons or debts due by firms or private companies respectively in which any director is a partner or a director or a member.

The Company is exposed to credit risk from its operating activities, primarily trade receivables which the Company minimizes by dealing with high credit rating counterparties . Outstanding customer receivables are regularly monitored on individual basis and are reconciled at regular intervals. Impairment analysis of trade receivables is done at each reporting date on an individual basis. The expected loss recognised at each reporting date is '' Nil.

* Site Restoration Fund Account : This amount has been deposited with banks under section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipment''s and installations in a manner agreed with the Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment, etc.. This amount is considered as restricted cash and hence not considered as ''Cash and cash equivalents''.

There are no advances to directors or other officers of the Company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member.

b) Rights, preferences and restrictions attaching to Equity Shares

- The Company has issued only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

- In event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

Nature of reserves :

Capital reserve: Capital reserve was created from profit on forfeiture of warrants/ forfeiture of shares. The Company may use this reserve for issue of fully paid bonus shares to its members.

Capital redemption reserve: Capital redemption reserve was created on buy back of equity shares. The Company may use this reserve in paying up unissued shares of company to be issued to members of the company as fully paid bonus shares.

Securities premium reserve: Security premium reserve was created on issue of equity shares at premium. The Company may use this reserve for issue of fully paid bonus shares to its members and for buy-back of its shares. General reserve: General reserve represents the reserve created by apportionment of profit generated during the year or transfer from other reserves either voluntarily or pursuant to statutory requirements. The same is a free reserve and available for distribution.

Retained earnings: Retained earnings represents the undistributed profit of the Company.

Other comprehensive income (re-measurements of defined benefit plans): This reserve is the cumulative acturial gain/ (loss) on measurement of defined benefit liability (Gratuity).

b) In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, Inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the investment multiple in the preceding year is less than 3.5. The Company received an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the Delhi High Court and the same is sub judice.

3 MINIMUM ALTERNATE TAX (MAT)

The Company is entitled to avail Credit under Section 115 JA (1A). Accordingly, MAT credit entitlement has been considered as an asset to the extent there is convincing evidence that the Company will pay normal income tax during specified period under law.

4 DISCLOSURES AS REQUIRED FOR LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186(4) OF THE COMPANIES ACT, 2013:

The Company has not given any loan, security or provided any guarantee, nor made any investment during the year as per section 186(4) of the Companies Act, 2013.

5 DEFINED BENEFIT PLANS

I Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service subject to a maximum of Rs. 20 Lakhs. Vesting occurs upon completion of five continuous years of service in accordance with Indian Law. The Company has taken a policy with Life Insurance Corporation of India approved by IRDA for meeting the accruing liability on account of gratuity. The premium, actuarially ascertained by the insurance company is charged to profit and loss account. The amount debited to profit and loss account is Rs. 1.30 lacs.

Other long-term employee benefits:

II Leave encashment

The Company provides for the expected cost of accumulating paid leave whcich can be carried forward and used in future periods by the employees. The obligation for accumulating paid leaves has been recognised at the end of the reporting period.

In respect of Gratuity & Leave Encashment, provision is made based on the actuarial valuation by an independent actuary. The following information as required under Ind AS-19 are based on the report of the Actuary :

6 FAIR VALUE MEASUREMENT

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1 Fair value of cash and short-term deposits, trade and other short term receivables, trade payables , other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

2 Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : other techniques for which all inputs which have a significant effects on the recorded fair value are observable, either directly or indirectly.

Level 3 : techniques which use inputs that have a significant effects on the recorded fair value that are not based on observable market data.

7 FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise borrowings, trade and other payables and advances from customers. The main purpose of these financial liabilities is to finance the Company''s operations, projects under implementation and to provide guarantees to support its operations. The Company''s principal financial assets include Investment, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised below :

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, currency risk and commodity price risk. Financial instrument affected by market risk include investments and deposits, receivables, payables, loans and borrowings.

(i) Interest rate risk

Interest rate sensitivity

The Company has not availed any floating interest borrowings, hence is not exposed to interest rate risk.

(ii) Foreign Currency risk

The Indian Rupee is the entity''s most significant currency. As a consequence, the entity''s results are presented in Indian Rupees and exposures are managed against Indian Rupees accordingly. The entity has limited foreign currency exposure which are mainly on account of purchases and exports.

The company has not hedged its foreign currency exposure as at 31 March 2018, 31 March 2017 and 1 April 2016.

(iii) Commodity price risk

The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any oil price hedge. The impact of a falling oil price is however partly mitigated via the production sharing formula in the PSCs, whereby the Company''s share of gross production increases in a falling oil price environment due to the cost recovery mechanism. Gas prices are fixed for a certain duration of time and the same are based on policy guidelines issued by the Government.

(b) Credit Risk

(i) Trade Receivables

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company''s policy. Investments of surplus funds are made only with approved authorities. Credit limits of all authorities are reviewed by the Management on a regular basis. All balances with banks and financial institutions is subject to low credit risk due to the good credit ratings assigned to these entities.

(c) Liquidity Risk

The table below summaries the maturity profile of the Company''s financial liabilities at the end of the reporting period based on contractual undiscounted repayment obligations.

8 CAPITAL MANAGEMENT

9 EXPLANATION OF TRANSITION TO IND AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 3 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (The Company''s date of transition).

An explanation of how the transition from GAAP to Ind AS has effected the Company''s financial position, financial performance and cash flows is set out below :

Exemptions and exceptions availed

In preparing the Financial Statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions in transition from Indian GAAP to Ind AS :

a) Optional Exemptions

i. Deemed Cost - Property, plant and equipment and intangible assets (including Devlopment of Hydrocarbon Properties):

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the GAAP and use that as its deemed cost as on the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Company has chosen to retain the cost of the Property, plant & equipment and intangible assets and Development of Hydrocarbon Properties at their value as per Indian GAAP.

b) Mandatory Exemptions

i. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistant with estimate made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies), unless there is unassailable evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with Indian GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under Indian GAAP:

- Impairment of financial assets based on expected credit loss model

- Fair value through Other Comprehensive Income

ii. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

e) Notes to the Reconciliation

i Figures as per IGAAP as on 01.04.2016 and 31.03.2017 have been re-classified / re-grouped / re-stated wherever necessary.

ii. Fair valuation of Long term Security Deposit

Under Indian GAAP, interest free security deposits (that are refundable in cash on completion of contract) are recorded at their transaction value. Under Ind AS all financial assets are required to be recognised at fair value. Accordingly, the company has done fair valuation of security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent / interest expense.

iii. Actuarial gains/(losses)

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plans on acturial report basis. Under Indian GAAP, acturial gain and losses were charged to statement of profit and loss. Under Ind AS, the Company''s accounting policy is to recognise all actuarial gains and losses on post-employment benefit plans in other comprehensive income.

10 The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

11 Presentation of Negative Amounts

Unless otherwise stated or the context requires it to be interpreted otherwise, figures in bracket in the financial statements represent negative amounts.

12 Previous year figures have been rearranged / regrouped where ever necessary.

13 In the opinion of management, the value of the assets, other than fixed assets, on realization in the ordinary course of business, will not be less than the value at which they are stated in the Balance Sheet.

Mar 31, 2017

1. Corporate Information:

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5 July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

2. Capital Commitments:

Outstanding commitments for capital expenditure (net of advances) : t 33,750 (previous year : Nil).

3. The Company has taken premises and land for field operations on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to X 16,109,478 (previous year ? 10,917,725). Amount due within one year ? 16,270,430.

4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

5. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7. The disclosures of Employee Benefits as defined in the revised Accounting Standard - 15 are given below:

i. Change in present value of obligation:

Note: The above information is given from the report furnished by the Actuary as at the end of the year.

Note: Provision for accruing liability for Gratuity and Leave Encashment which are done on overall Company basis and not separately ascertainable and, therefore, not included above.

8. Segment Reporting as per Accounting Standard - 17:

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Related Party Disclosures as per Accounting Standard - 18:

(a) Related Parties and their relationships

(i) Key Management Personnel

- Mr. Rohit Kapur, Chairman and Whole-time Director

- Dr. D.J. Corbishley, Director

(b) Transactions with the above party in the ordinary course of business: -

10. Minimum Alternate Tax (MAT) :

11. Remittance in Foreign Currency to Non-residents on account of dividends: NIL

(Dividend are paid in local currency to the mandated banks)

12. Previous year figures have been regrouped wherever necessary to correspond with the current year figures

Mar 31, 2016

b) Rights, preferences and restrictions attaching to equity shares :

The Company has issued only one class of equity shares having par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the five years preceding immediately before the reporting date :

1.. Corporate Information :

2. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances) : Rs. Nil (previous year : Rs. 1,080,931).

3.. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to Rs. 10,917,725 (previous year Rs. 8,482,208). Amount due within one year Rs. 11,289,520.

5.. The Company has not received any information from suppliers or service providers, whether they are covered under the âMicro, Small and Medium Enterprises (Development) Act, 2006â. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6.. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7.. The disclosures of Employee Benefits as defined in the revised Accounting Standard - 15 are given below :

8. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Related party Disclosures as per Acccounting Standard - 18:

(a) Related Parties and their relationships

(i) Key Management Personnel

- Mr. Rohit Kapur, Chairman and Whole-time Director

(b) Transactions with the above party in the ordinary course of business: -

10. Minimum Alternate Tax (MAT) :

11. Remittance in foreign Currency to Non-residents on account of dividends : NIL

12. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

Mar 31, 2015

1. Rights, preferences and restrictions attaching to equity shares :

The Company has issued only one class of equity shares having par value of R 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

2. Corporate Information :

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5th July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

3. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances) - Rs. 1,080,931 (previous year Rs. 6,202,065)

4. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to Rs. 8,482,208 (previous year Rs. 6,095,458). Amount due within one year Rs. 10,233,301.

5. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon'ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

6. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006". Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

7. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

8. As a result of change in the Accounting Policy no. 1.07 regarding the period of amortisation, the amortisation is lower by Rs. 157,921,010 and consequently the profit of the year before tax is higher by Rs. 139,515,010, as compared to the period previously followed. The corresponding impact on managerial remuneration is higher by Rs. 7,200,000 and provision for current tax on MAT basis is higher by Rs. 29,346,000.

9. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

10. Corporate Social Responsibility (CSR) :

The Company is required to spend a further sum of Rs. 5,047,977 towards Corporate Social Responsibility relating to the financial year 2014-15, as required under section 135 of the Companies Act, 2013. This is expected to be spent in the succeeding financial year.

11. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

Mar 31, 2013

1. Corporate Information :

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5 July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

2. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances) - R978,000/- (previous year R3,898,865/-)

3. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to R6,138,462/- (previous year R5,580,807/-) Amount due within one year R5,992,566/-.

4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the HonÂble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

5. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006Â. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7. The disclosures of Employee Benefits as defined in the Accounting Standard - 15 are given below :

8. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

Mar 31, 2012

A) Rights, preferences and restrictions attaching to equity shares :

The Company has issued only one class of equity shares having par value of R 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

Cash EPS is calculated after adding back Development of Hydrocarbon Properties written off, deferred tax and depreciation to net profit.

1. Corporate Information :

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 05 July 1985, under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

2. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances)

- R3,898,865/- (previous year R6,910,000/-)

3. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to R 5,580,807/- (previous year R3,324,012/-). Amount due within one year R5,600,951/-.

4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GoI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GoI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GoI had appealed to the Hon'ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GoI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

5. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006". Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7. The disclosures of Employee Benefits as defined in the Accounting Standard - 15 are given below :

8. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Oil and Natural Gas Corporation Ltd., vide letter dated 27.01.2012 has revised retrospectively the charges relating to handling and processing of crude oil at their terminal. The revision includes charges relating to the period 2008-09 to 2010-11 aggregating to R19,698,997/-

10. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

Mar 31, 2011

Not Available

Mar 31, 2010

1. Contingent Liabilities :

Disputed sales tax demand under appeal, not provided for - Rs. 1.53 million (previous year 1.53 million).

The future cash outflow on the above, if any, is determinable only on receipt of the decisions pending before the authorities.

2. In the Arbitration Proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GoI) with respect to the Lohar oilfield, inter-alia, the issue was whether Profit Petroleum is payable to the GoI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Arbitral Tribunal has by its Award dated 3 May 2010, declared that the Investment Multiple actually achieved has to be calculated every year to determine the share of Profit Petroleum in the preceding year, to be shared in the succeeding year. Consequently, Profit Petroleum is to be shared with the GoI only, if the Investment Multiple in the preceding year exceeds a value of 3.5. Since the Investment Multiple actually achieved by the Company at the end of the preceding year, i.e. 2009 is less than 3.5, no Profit Petroleum is payable to GoI. The amount recoverable from the Government of India up to 31.03.2010, based on the Award, is estimated at USD 1,674,002 (excluding interest).

3. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

4. During the year, 1,230,000 shares of Rs. 10 each at a premium of Rs. 155 each were issued on conversion of warrants of Rs. 10 each and 570,000 warrants of Rs. 10 each were forfeited and the Application amount of Rs. 9,405,000 was transferred to Capital Reserve. During the year, 107,940 shares were bought back under the buyback scheme.

5. The disclosures of Employee Benefits as defined in the Accounting Standard are given below :

6. The Company has not received any intimation from "suppliersÃ or "service providers" regarding their status under the Micro, Small and Medium Enterprises (Development) Act, 2006, and hence, disclosure, if any, relating to amounts unpaid as at 31 March 2010 together with interest payable as required under the said Act are not as certain able.

7. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

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