Notes to Accounts of Asian Energy Services Ltd.

Mar 31, 2025

r) Provisions (other than employee benefits)

Provisions are recognized when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognized
for future operating losses.

Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as
a whole. A provision is recognized even if the likelihood
of an outflow with respect to any one item included in
the same class of obligations may be small.

Provisions are measured at the present value of
management''s best estimate of the expenditure
required to settle the present obligation at the end of the
reporting period. The discount rate used to determine
the present value is a pre-tax rate that reflects current
market assessments of the time value of money and
the risks specific to the liability. The increase in the
provision due to the passage of time is recognized as
interest expense.

s) Contingencies

Disclosure of contingent liabilities is made when there
is a possible obligation or a present obligation that may,

but probably will not, require an outflow of resources.
Where there is possible obligation or a present
obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is
made.

Contingent assets are not recognized in the standalone
financial statements. However, contingent assets are
assessed continuously and if it is virtually certain that
an inflow of economic benefits will arise, the assets and
the related income are recognized in the period in which
the change occurs. Contingent assets are recognized
where an inflow of economic benefits is probable.

t) Employee Benefits

Liability on account of short-term employee benefits
is recognized on an undiscounted and accrual basis
during the period when the employee renders service/
vesting period of the benefit.

Defined Contribution Plan:

The Company pays contribution to the provident fund
and employee state insurance corporation which is
administered by respective Government authorities.
The Company has no further payment obligations once
the contributions have been paid. The Contributions
are recognized as employee benefit expense in the
statement of profit and loss to the year it pertains.

Defined benefit plan:

Gratuity: The Company’s liability towards gratuity is
determined using the projected unit credit method
which considers each period of service as giving rise
to additional unit of benefit entitlement and measures
each unit separately to build up the final obligation.
The cost for past services is recognized on a straight
line basis over the average period until the amended
benefits become vested.

Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognized in the period in which they
occur, directly in other comprehensive income. They
are included in retained earnings in the statement of
changes in equity and in the balance sheet.

Obligation is measured at the present value of
estimated future cash flows using a discount rate
that is determined by reference to market yields at
the Balance Sheet date on Government bonds where
the currency and the terms of Government bonds are
consistent with the currency and estimated term of
defined benefit obligation.

u) Earnings Per Share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per
share, the net profit attributable to equity shareholders
and the weighted average number of shares outstanding
are adjusted for the effect of all dilutive potential equity
shares from the exercise of options on unissued share
capital. The number of equity shares is the aggregate of
the weighted average number of equity shares and the
weighted average number of equity shares which are
to be issued in the conversion of all dilutive potential
equity shares into equity shares.

v) Segment reporting

Segments are identified based on the manner in which
the Chief Operating Decision Maker (''CODM’) decides
about resource allocation and reviews performance of
the Company. The Managing Director of the Company
is identified as CODM, who assesses the financial
performance and position of the Company and makes
strategic decisions.

The CODM reviews revenue and gross profit as the
performance indicators and does not review the total
assets and liabilities for each reportable segment.
The measurement of each segment’s revenues and
expenses is consistent with the accounting policies that
are used in preparation of the Company’s standalone
financial statements.

w) Unforeseeable losses

The Company has a process whereby periodically all
long-term contracts (including derivative contracts)
are assessed for material foreseeable losses. As at
the year end, the Company did not have any long-term
contracts (including derivative contracts) for which
there were any material foreseeable losses.

Key accounting estimates and judgements

The preparation of the Company’s standalone financial
statements requires the management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities reflected

in future periods. Management believes that the
estimates used in the preparation of the financial
statements are prudent and reasonable. Estimates and
underlying assumptions are reviewed by management
at each reporting date. Actual results could differ from
these estimates. Any revision of these estimates is
recognized prospectively in the current and future
periods.

Information about significant areas of estimation and
assumptions/ uncertainty and judgements in applying
accounting policies are as follows:

(i) Deferred income taxes

The assessment of the probability of future
taxable profit in which deferred tax assets can
be utilized is based on the Company’s latest
forecast, which is adjusted for significant non¬
taxable profit and expenses and specific limits
to the use of any unused tax loss or credit. The
tax rules in the different jurisdictions in which the
Company operates are also carefully taken into
consideration. If a positive forecast of taxable
profit indicates the probable use of a deferred tax
asset, especially when it can be utilized without
a time limit, that deferred tax asset is usually
recognized in full.

(ii) Revenue recognition

Contracts with customers often include promises
to transfer multiple services to a customer.
Determining whether services are considered
distinct performance obligations that should be
accounted for separately or together requires
significant judgment based on nature of the
contract, ability of the service to benefit the
customer on its own or together with other
readily available resources and the ability of the
service to be separately identifiable from other
promises in the contract. Estimation relating to
warranty obligation in the projects undertaken
by the Company are determined based on the
nature of the contract and future costs to fulfill the
obligation under the warranty period.

In contracts, where percentage of completion
method is followed for revenue recognition,
estimation of total budgeted cost of completion
is required to be made. The Company reviews
forecasts of total budgeted costs in the scope
of work and other payments to the extent that
they are probable, and they are capable of being
measured at the end of each reporting period.

(iii) Useful lives of various assets

The charge in respect of periodic depreciation or
depletion is derived after determining an estimate
of an asset’s expected useful life and the expected
residual value at the end of its life. The useful
lives and residual values of assets are determined
by the management at the time of acquisition
of asset and reviewed periodically, including
at each financial year. The lives are based on
historical experience with similar assets as well
as anticipation of future events, which may impact
their life, such as changes in technology.

(iv) Current income taxes

The tax jurisdiction for the Company is India.
Significant judgments are involved in determining
the provision for income taxes including judgment
on whether tax positions are probable of being
sustained in tax assessments. A tax assessment
can involve complex issues, which can only
be resolved over extended time periods. The
recognition of taxes that are subject to certain
legal or economic limits or uncertainties is
assessed individually by management based on
the specific facts and circumstances.

(v) Accounting for defined benefit plans

In accounting for post-retirement benefits, several
statistical and other factors that attempt to
anticipate future events are used to calculate plan
expenses and liabilities. These factors include
expected discount rate assumptions and rate of
future compensation increases. To estimate these
factors, actuarial consultants also use estimates
such as withdrawal, turnover, and mortality rates
which require significant judgment. The actuarial
assumptions used by the Company may differ
materially from actual results in future periods
due to changing market and economic conditions,
regulatory events, judicial rulings, higher or lower
withdrawal rates, or longer or shorter participant
life spans.

(vi) Impairment

An impairment loss is recognized for the
amount by which an asset’s or cash-generating
unit’s carrying amount exceeds its recoverable
amount to determine the recoverable amount,
management estimates expected future cash
flows from each asset or cash generating unit
and determines a suitable interest rate in order to
calculate the present value of those cash flows.

In the process of measuring expected future cash
flows, management makes assumptions about
future operating results. These assumptions
relate to future events and circumstances. The
actual results may vary, and may cause significant
adjustments to the Company’s assets.

In most cases, determining the applicable
discount rate involves estimating the appropriate
adjustment to market risk and the appropriate
adjustment to asset-specific risk factors.

(vii) Expected credit loss

Refer note for Impairment of financial assets
mentioned in accounting policy on financial
instruments above.

(viii) Share based payments

Estimating fair value for share-based payment
requires determination of the most appropriate
valuation model. The estimate also requires
determination of the most appropriate inputs to
the valuation model including the expected life of
the option, volatility and dividend yield and making
assumptions about them.

(ix) Fair value of financial instruments

Management uses valuation techniques in
measuring the fair value of financial instruments
where active market quotes are not available. In
applying the valuation techniques, management
makes maximum use of market inputs and
uses estimates and assumptions that are, as
far as possible, consistent with observable data
that market participants would use in pricing
the instrument. Where applicable data is not
observable, management uses its best estimate
about the assumptions that market participants
would make. These estimates may vary from the
actual prices that would be achieved in an arm’s
length transaction at the reporting date.

(x) Estimation of provision for decommissioning
costs

The Company along with the lead operator of
the oilfield operations, estimates provision for
decommissioning for the future decommissioning
of oil assets at the end of their economic lives.
The decommissioning activities would be in the
future, the exact requirements that may have
to be met during the occurrence of removal
events are uncertain. Technologies and costs
for decommissioning are varying constantly.

The timing and amounts of future cash flows
are subject to uncertainty. The timing and the
future expenditures are reviewed at the end of
each reporting period. The economic life of the
oil assets is estimated based on the economic
production profile of the relevant oil asset.

(xi) Estimation of reserves

Management estimates production profile
(proved and developed reserves) in relation to
all the oil and gas assets determined as per the
industry practice. The estimates so determined
are used for the computation of depletion and
loss on impairment, if any. The Company uses the
services of third-party agencies for estimation of
reserves of its assets who adopt latest industry
practices for their evaluation.

(xii) Business combination

Management applies judgement in determining
whether an acquisition constitute a business
or not. In applying judgement, the Company
determines whether the acquisition constitute
inputs and when processes are applied to those
inputs, it should have the ability to contribute to
the creation of outputs. Further, determination
of fair values of assets and liabilities acquired in
a business combination involves estimation of
future cash flows and operating results which
relate to future events and circumstances, which
might vary.

CT RECENT ACCOUNTING PRONOUNCEMENTS

• Standards notified but not yet effective

The Ministry of Corporate Affairs (MCA) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. As
on the date of release of these standalone financial
statements, MCA has notified an amendment
to Ind AS 21 regarding lack of exchangeability
between currencies, which is applicable for
reporting period beginning on or after April 01,
2025. Such amendment to existing standard has
not been adopted early by the Company.

• New and amended standards notified by Ministry
of Corporate Affairs (‘MCA'')

Amendments to Ind AS 116 - The amendment
to Ind AS 116 addresses the measurement of
lease liabilities in sale and leaseback transactions,
ensuring that seller-lessees do not recognize any

gain or loss related to the retained right-of-use
asset.

Ind AS 117 - Ind AS 117 shall be applicable to
entities having (a) insurance contracts, including
reinsurance contracts, it issues; (b) reinsurance
contracts it holds; and (c) investment contracts
with discretionary participation features it
issues, provided the entity also issues insurance
contracts.

MCA has also notified the Companies (Indian
Accounting Standards) Third Amendment Rules,
2024, to provide relief to the insurers or insurance
companies. Additionally, Ind AS 104 has been
reissued for use by the insurers or insurance
companies.

The above new and amended standards had no impact
on the Company’s standalone financial statements.

Notes:

(i) The balance unexercised equity shares held by the ESOP Trust at the end of the year had been reduced against the
share capital as if the trust is administered by the Company itself. The securities premium related to the unexercised
equity shares held by the trust at the close of the year amounting to '' 82.59 Lakhs (March 31,2024: '' 228.44 Lakhs)
has been reduced from securities premium account and adjusted against the loan outstanding from the ESOP Trust.

(ii) In 2021-22, the Company had approved "Asian Energy Services Limited - Employee Stock Option Plan - 2021" ("AESL
ESOP 2021") authorizing grant of maximum 380,744 stock options to the eligible employees. During the current year,
200,643 stock options were exercised (March 31,2024: 109,183 stock options).

(iii) During the current year, the Company has approved "Asian Energy Services Limited - Employee Stock Option Plan -
2024" ("AESL ESOP 2024") authorizing grant of not exceeding 380,744 stock options to the eligible employees. Under
this scheme, equity shares will be directly allotted by the Company as and when exercised.

(iv) During the current year, 5,030 stock options had lapsed (March 31, 2024: 65,144 stock options) under AESL ESOP
2021 scheme.

(h) Share warrants

(i) The Allotment Committee of the Board of Directors of the Company, on November 05, 2024, considered and approved
the allotment of 47,00,000 convertible share warrants on preferential basis to certain identified non-promoter
persons/ entities ("Allottees") each carrying a right upon being fully paid up, to subscribe one equity share of face
value of '' 10 each at an issue price of '' 335.00 /-.

The Company has complied with the provisions of section 42 and section 62 of the Companies Act, 2013 and the
rules framed thereunder in relation to such preferential allotment on a private placement basis.

(ii) The Allotment Committee of the Board of Directors of the Company, on August 21, 2023, considered and approved
the allotment of 67,00,000 convertible share warrants on preferential basis to certain persons/ entities each carrying
right upon being fully paid up, to subscribe one equity share of face value of '' 10 each at an issue price of '' 127.50/-.

(a) Nature of security and terms of repayment of long term borrowings

1 Term loan from Bank

During the current year, the Company has availed term loan from Bank of Maharashtra for the purpose of purchase of
plant and machinery carrying variable interest rate linked to MCLR plus spread (9.30% p.a as at March 31,2025) with
agreed interest rate reset clause which is repayable in 42 equal monthly installments along with interest, upto 2029¬
30. These are primarily secured by way of hypothecation of plant and machinery to be purchased out of the proceeds
of such loan. The moratorium period of 6 months is applicable for principal repayment from the first disbursement
date.

The loan is also secured by way of corporate guarantee by M/s Oilmax Energy Private Limited (Holding Company).

2. Vehicle Loan-

The Company has availed vehicle loans. Interest rate charged ranges from 8.75% p.a. to 10.00% p.a. The vehicles
financed through such borrowing are forming part of the property, plant and equipment and have been hypothecated
for the said borrowings. The borrowings will be repaid by the Company in equal predetermined installments over
a period ranging from 39 to 48 months from the borrowings origination date with the last installment repayable in
2026-27.

(b) Working capital facilities from bank :

(i) Cash credit facility from Bank of Maharashtra is secured by way of first pari-passu charge on stock and book debts
and all the current assets of the Company. Further, the facility is secured by certain fixed deposits and counter
indemnity. The interest rate applicable to the facility is computed using prevailing MCLR plus spread (9.80% p.a. as
on March 31,2025). These are repayable on demand. The facility is also secured by way of corporate guarantee by
M/s Oilmax Energy Private Limited (Holding Company).

(ii) Cash credit facility from Union Bank of India is secured by way of exclusive charge on certain fixed deposits
and counter indemnity, hypothecation of stock and book debts, plant and machineries at various projects of the
Company. The facility is secured by way of personal security of Mr. Kapil Garg (Managing Director), Mrs. Ritu Garg
(Promoter) and Mr. Aman Garg (Non-Executive Director and relative of promoter and managing director). The interest
rate applicable to the facility is computed using prevailing MCLR plus spread (9.80% p.a. as on March 31, 2025).
The above mentioned personnel have also provided certain personal immovable properties as security. These are
repayable on demand. The facility is also secured by way of corporate guarantee by M/s Oilmax Energy Private
Limited (Holding Company).

(iii) During the previous year, the Company had availed overdraft facilities which was secured by way of exclusive charge
on certain fixed deposits of the Company. The interest rate applicable to the facility was computed using prevailing
fixed deposits rate 1%. The same has been fully repaid in current year.

2. The Company has recognized the following in the statement of profit and loss:

(i) Depreciation expense on right-of-use assets of '' 117.64 Lakhs (March 31,2024: '' 137.96 Lakhs) (Refer note 6)

(ii) Interest on lease liabilities of '' 7.30 Lakhs (March 31,2024: '' 14.34 Lakhs) (Refer note 34).

(iii) Expense amounting to ''4,001.52 Lakhs (March 31,2024: '' 1,131.70 Lakhs) related to leases of low-value assets and
leases with less than twelve months of lease term. These have been included under machine hire charges, vehicle
hire charges and rent expenses (Refer notes 31 and 36).

(iv) Rental income amounting to Nil (March 31,2024: '' 40.73 Lakhs) is related to assets given on lease with less than
twelve months of lease term. It has been included in other operating income (Refer note 29).

3. The total net cash outflow for the payment of lease liability and interest is '' 339.23 Lakhs (March 31, 2024: '' 275.48
Lakhs).

Hfli FAIR VALUE MEASUREMENTS

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

Fair value hierarchy :

Financial assets and financial liabilities measured at fair value in the Balance sheet are grouped into three levels of a fair value
hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Fair value of financial assets and liabilities measured at amortized cost

The carrying amounts of trade receivable, cash and cash equivalents, other bank balances, loans, current security deposit, trade
payables and other current financial liabilities are considered to be the same as their fair values, due to their short term nature.
Fair value of other non-current financial assets approximate their carrying amounts due to the fact that it is estimated by
discounting future cash flows using market rates of interest applicable as at reporting dates.

Fair value of long term borrowings approximate their carrying amounts due to the fact that long term borrowings are measured
at amortized cost using the floating rates/fixed rates of interest, which in turn are based on interest rates prevailing in the
market for similar transaction.

Fair value of financial assets measured at FVTPL

The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these
mutual fund units in the published statements as at reporting date.

Fair value of financial assets at FVTOCI

The fair value of investments carried at FVTOCI is determined, using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on available
market data. The fair value of these investments is categorized as Level 3 because the shares are neither listed on an exchange
and there were no recent observable arm''s length transactions in the shares.

There are no transfers in either level during the reporting periods.

HH FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the
entity is exposed to and how the entity manages the risk and the related impact in the financial statements. The Company’s risk
management is done in close co-ordination with the board of directors and focuses on actively securing the Company''s short,
medium and long-term cash flows by minimizing the exposure to volatile financial markets. Long-term financial investments
are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative
purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:

Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company is
exposed to credit risk from loans and advances to related parties, trade receivables, bank deposits and other financial assets.

Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on such fixed
deposits.

The Company does not have significant credit risk from loans given considering these are provided to related parties or to
financial institution for shorter duration. Mutual fund investments are made in liquid and overnight plans of renowned asset
management companies only. The credit risk associated with bank, security deposits and mutual fund investments is relatively
low.

The Company trades with recognized and credit worthy third parties. The Company periodically assesses the financial reliability
of the counter party, taking into account the financial condition, current economic trends, and analysis of historical bad debts
and ageing of accounts receivable.

Credit risk on trade receivables is limited as the Company’s customer base majorly includes reputed and large corporate groups
and public sector enterprises. It is the Company’s policy that all customers who wish to trade on credit terms are subject to
credit verification procedures. Also, generally the Company does not enter into sales transaction with customers having credit
loss history. In addition, trade receivable balances are monitored on an on-going basis with the result that the Company’s
exposure to bad debts is not significant. In case of trade receivables due from related parties and in case of disputed trade
receivables, the Company performs individual credit risk assessment and creates expected credit loss allowance (ECL) based
on internal assessment. Further, the Company computes ECL on undisputed trade receivables (including those where ultimate
customer is a non-related party) at each reporting date, based on provision matrix which is prepared considering historically
observed overdue rate over expected life of trade receivables and is adjusted for forward-looking estimates.

b) For reconciliation of loss allowance on trade receivables, refer note 15.1.

c) For reconciliation of loss allowance on contract assets, refer note 18.1.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a
reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowings,
trade payables, lease liabilities and other financial liabilities.

The Company’s principal sources of liquidity are cash and cash equivalents, current investments and the cash flow that is
generated from operations. The Company believes that the working capital is sufficient to meet its current requirements.
Accordingly, no liquidity risk is perceived. The Company closely monitors its liquidity position and maintains adequate
source of funding.

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and net asset value
(NAV) of mutual fund units will affect the Company’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimizing the return. The sensitivity analysis excludes the impact of movements in market variables on the carrying value
of post-employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the
relevant profit and loss item is the effect of the assumed changes in respective market risks.

Mutual fund price risk

The value of unquoted mutual fund investments measured at fair value through profit and loss as at March 31,2025 is
'' 1,837.92 Lakhs (March 31,2024: '' 340.93 Lakhs). A 10% change in value for year ended March 31,2025 would result in
an impact of '' 183.79 Lakhs (March 31,2024: '' 34.09 Lakhs) on profit/ (loss) before tax and other equity (holding all other
variables constant).

Foreign currency risk

Most of the Company’s transactions are carried out in INR (''). The Company is exposed to foreign exchange risk arising
from certain foreign currency transactions, primarily with respect to the US Dollar. Foreign exchange risk arises from
recognized assets and liabilities denominated in a currency that is not the Company’s functional currency. The Company’s
operations in foreign currency creates natural foreign currency hedge. This results in insignificant net open foreign
currency exposures considering the volumes and operations of the Company.

Interest rate risk

This refers to risk to Company’s cash flow and profits on account of movement in market interest rates.

For the Company the interest risk arises mainly from interest bearing borrowings which are at floating interest rates.
To mitigate interest rate risk, the Company closely monitors market interest and as appropriate makes use of hedged
products and optimizes borrowing mix / composition.

The above calculation also assumes that the change occurs at the balance sheet date and has been calculated based on
risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt
outstanding during the period.

WHi CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern so that they can
continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal structure to reduce
the cost of capital. In order to maintain or adjust the Capital structure, the Company may adjust the amounts of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell new assets to reduce debt. The Company does not
have externally imposed capital requirements.

1E1 EMPLOYEE BENEFITS

1. Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Benefits such as salaries, incentives and allowances, short term compensated absences, etc., and the expected
cost of bonus, ex-gratia are recognized in the year in which the employee renders the related service.

2. Long term employee benefits

(i) Defined benefit plan

Gratuity (funded) :

The Group provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are
in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/
termination is the employees last drawn basic salary per month computed proportionately for 15 days salary
multiplied for the number of years of service.

The sensitivity analyzes above have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change
in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption,
the method (Projected Unit Credit Method) used to calculate the liability recognized in the balance sheet has been applied.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the
previous period. Sensitivities due to mortality and turnover are not material and hence impact of change due to these are
not calculated.

G. Risk exposure

The Company is exposed to a number of risks, the most significant of which are actual salary growth rate and reduction
in discount rate in future, which can increase the obligation.

(ii) Defined contribution plan

Provident fund and employee''s state insurance corporation dues

The Company pays fixed contribution to the provident fund, employee''s state insurance corporation entities
and labour welfare fund in relation to several state plans and insurances for individual employees. This fund is
administered by the respective Government authorities, and the Company has no legal or constructive obligations
to pay contributions in addition to its fixed contributions, which are recognized as an expense in the year the related
employee services are received.

Company''s contribution to defined contribution plan recognized as employee benefit expenses is as below:

(iii) Share-based payment transactions

In FY 2021 - 22, the Company had approved "Asian Energy Services Limited - Employee Stock Option Plan - 2021"
("AESL ESOP 2021") authorizing grant of not exceeding 380,744 stock options to the eligible employees. The scheme
is designed to provide long term incentives for certain employees to deliver long term shareholders return. During
the current year, the Company has granted Nil (March 31, 2023: 380,000) employee stock options convertible into
equivalent equity shares to the eligible employees including that of group company pursuant to such scheme. The
details of activity under the ESOP schemes are summarized below:

D. Other outstanding arrangements:

Kapil Garg, Ritu Garg and Aman Garg have provided personal security towards cash credit facility availed by the Company
from Union Bank of India. These individuals have also provided certain personal immovable properties as security.

The Holding Company has also provided a Corporate Guarantee to the bankers towards cash credit facilities availed by the
Company. Such facility has a credit balance amounting to '' 1,579.85 Lakhs as on March 31,2025 (March 31,2024 - debit
balance of '' 1.79 Lakhs).

The Company has implemented one of its employee stock option plan through creation of a Special Purpose
Vehicle (SPV).The Company treats such SPV as its extension as in substance the Company assumes all the risks and
rewards related to such arrangement including managing such SPV. Hence such SPV is not considered as related party
for disclosure purpose in this note.

^A The figures does not include provision for gratuity since it is actuarially determined for the Company as a whole. Further,
1,51,000 stock options were granted to KMP during the current year (March 31,2024: Nil). Further 1,51,000 stock options
are available with KMP’s as on March 31,2025 (March 31,2024 : 29,314).

* The figures are based on contractual arrangement executed and does not include the impact of Ind AS.

** Provision towards outstanding loan and interest accrued thereon aggregating '' 208.50 Lakhs was made during the
year ended March 31, 2023. Also, interest on loan receivable from such subsidiary has not been accrued in the books of
account considering the financial position of such subsdiary.

# This pertains to value of stock options to the employees of subsidiary - Asian Oilfield & Energy Services DMCC (Refer
note 7).

Notes:

(i) Represents Company’s share of expenses in joint operation at Indrora oilfield.

(ii) Material transactions with related parties are in compliance with Section 177 and 188 of the Act, as applicable. The
closing balance with related parties are unsecured in nature. The settlement of receivable/ payable balances would
be done through cash or other financial asset.

IE1 UN-HEDGED FOREIGN CURRENCY EXPOSURES:

For un-hedged foreign currency exposure, refer section ''Foreign currency risk’ under note 41 - Financial Risk Management.
E31 CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of
its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
Board of Directors of the Company had constituted CSR Committee.

During the previous year, since the Company has not met the applicability criteria and hence, the Company has not carried out
any CSR activities. However, Company has met the criteria for applicability of CSR expenditure in current year and hence CSR
provisions are applicable.

The details for CSR activities carried out in current year are as follows:

g) In the normal course of business, the payment terms contractually agreed with the majority of the customers ranges from
30 to 60 days except retention monies which are due after the completion of the project as per the terms of contract.

EQ! CODE ON SOCIAL SECURITY, 2020

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into
effect and will record any related impact in the period in which the Code becomes effective.

EE1 ACQUISITION OF A PARTICIPATORY INTEREST IN AN OILFIELD DURING THE YEAR ENDED MARCH 31, 2024

(i) Background

Government of India (GOI) had awarded an oil field in the Cambay basin having surface coverage of 150.77 sq.km to Oilmax
Energy Private Limited (Holding Company) for a period of 20 years. Pursuant to such award, a revenue sharing contract
(RSC) was entered into between GOI and the Holding Company in September 2022. Such RSC allows for assignment of
Participatory Interest (''PI'') to other parties with the prior consent of GOI.

Subsequently, a Farmout agreement and a joint operating agreement (JOA) were entered between the Company and
Oilmax on April 08, 2023. Under this agreement, the Holding Company sold 50% of PI to the Company in this oilfield
for a consideration of '' 1,770 Lakhs (including indirect taxes). This agreement also provides for rights and obligations
concerning operations and activities under the contract.

Post that, an application was filed with GOI for approval of such sale of PI to the Company. The GOI approved the sale of PI
which was effective from June 30, 2023. As a result, an amendment was made to RSC which also included the Company
in it.

As per joint operating agreement, the parties have rights to assets and obligation for the liabilities pertaining to the assets
of a joint arrangment in their respective PI.

The above acquisition of PI was in a producing oil field which already had proved reserves (inputs) on which the operational
process will be applied to achieve the sale of crude oil (output) and hence such acquisition constitutes a business as per
Ind AS 103 - "Business Combinations".

As a result of above acquisition, the Company will further strengthen its position in the oil and gas segment.

For the purpose of the valuation, the basis of value was fair value. Fair value is the amount at which an asset (or liability)
could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a
forced or liquidation sale.

In the present scenario, the Company had acquired the rights towards reserves of crude oil and hydrocarbons (natural
resource) after purchasing 50% PI in a producing oil field. The underlying value of PI is derived from the reserves of such
natural resources. The transaction was done by the Company for having access to such natural resource and the related
well facility. The operations in such PI as purchased are located in a specified region of Indrora, Gujarat. As on acquisition
date, no brand was acquired by the Company. No material customer contracts/ relationships exists as on the acquistion
date. The business utilizes its own resource for supplying goods to customers and deploys its own sales force to interface
with them. Further, there is no material assembled workforce acquired.

Basis the facts mentioned above, fair value of entire purchase consideration has been attributable towards a single class
of asset which is an oil asset under property, plant and equipment.

Notes :

(i) Ind AS 103 requires the identifiable assets and liabilities to be fair valued in order to ascertain the net fair value of
identifiable assets, liabilities and contingent liabilities. These valuations are conducted by external valuation experts.
These measurements are based on information available at the acquisition date and are based on expectations and
assumptions that have been deemed reasonable by the management.

(ii) Discount rate of 20.62% has been used to determine free cash flows to the equity.

(iii) Tax rate of 25.17%, based on prevailing corporate tax rate in India, has been considered by the Company.

(iv) The acquisition contributed revenue from operations of '' 379.50 Lakhs and profit before tax of '' 71.31 Lakhs during
the financial year ended March 31,2024.

(v) The consideration of '' 1,770.00 Lakhs (including indirect taxes) was paid in cash by the Company.

(vi) Capital reserve arising on acquisition has been recognized directly in equity.

Proved reserves are those quantities of petroleum that, by analysis of geological and engineering data, can be estimated with
reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current
economic conditions, operating methods, and government regulations.

EBI AUDIT TRAIL (EDIT LOG) FEATURE IN THE ACCOUNTING SOFTWARE

The Ministry of Corporate Affairs (MCA) under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted
by the Companies (Accounts) Amendment Rules, 2021 requires companies, which use accounting software for maintaining
their books of account, to use only such accounting software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date when such changes were
made and ensure that the audit trail cannot be disabled and whether audit trail has been preserved by the Company as per the
statutory requirements for record retention.

The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. The audit
trail feature is not tampered with during the year. Further, the audit trail has been preserved by the Company as per the statutory
requirements for record retention from the date the audit trail was enabled for the accounting software, i.e. w.e.f. July 30, 2023.

These are the notes to the standalone financial statements referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. 001076N / N500013

Bharat Shetty Kapil Garg Nayan Mani Borah

Partner Managing Director Chairman

Membership No.: 106815 (DIN-01360843) (DIN-00489006)

Shweta Jain Nirav Talati

Company Secretary Chief Financial Officer

(ACS-23368)

Place: Mumbai Place: Mumbai

Date: May 16, 2025 Date: May 16, 2025

---

Mar 31, 2024

Nature and purpose of reserves

(i) Capital reserve

The Company recognises profit or loss on purchase or cancellation (including forfeiture) of its own equity instruments to capital reserve. It also includes gain arising from business combination transactions.

(ii) Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies Act, 2013. In line with Ind AS 32 - Financial Instruments: Presentation, the shares of the Company held by the Asian Oilfield Services Limited Employees Welfare Trust (ESOP Trust), are deducted from the equity component.

(iii) Outstanding employee stock options

The Company has stock option schemes under which options to subscribe for the Company’s shares have been granted to certain employees including key management personnel. This reserve is used to recognise the value of equity-settled share-based payments provided to employees, as part of their remuneration. The unutilised balance at the end of exercise period, is transferred to retained earnings.

(iv) Retained earnings

Retained earnings represents the accumulated profits / losses made by the Company over the years as reduced by dividends or other distributions paid to the shareholders and remeasurement gains/ loss on defined benefit plan.

(v) Money received against share warrants

Represents money received on allotment of convertible share warrants against which equity shares are yet to be allotted by the Company.

(vi) Equity instruments through other comprehensive income

Represents changes in the fair value of certain investments measured in other comprehensive income.

The accompanying notes forms an integral part of these standalone financial statements This is the Standalone Statement of Changes in Equity referred to in our report of even date.

Also, interest on loan receivable from one of the subsidiaries has not been accrued in books of account considering the financial position of such subsidiary.

3. Loan to a related party (considered good) carries an interest rate of 10.00% p.a. (March 31,2023 : 10.00% p.a.) and it is repayable on demand.4. Amount for both the reporting years represent funds deposited with a financial institution for short duration and carries fixed rate of interest of 7.00% p.a. (March 31,2023 : 7.00 % p.a).

5. There are no loans due from any director or any officer of the Company, either severally or jointly with any other person, or from any firms or private companies in which any director is a partner, a director or a member.

1. There are no trade receivables due from any director or any officer of the Company, either severally or jointly with any other person.

2. Trade receivables due from a private company in which director of the Company is a director amounts to '' 1,130.86 lakhs (March 31,2023: '' 2,523.52 lakhs).

3. Trade receivables includes retention money amounting to '' 2,303.49 lakhs (March 31,2023 : '' 765.60 lakhs).

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting except for interim dividend. In the 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 shareholder.

^A (i) There is an increase in the percentage holding of Oilmax Energy Private Limited by 2.65% (March 31,2023: 3.09%) as additional shares were purchased vide open market transaction during the respective reporting periods.

(ii) There is a reduction in the percentage holding of Ritu Garg by 50.65% (March 31,2023: Nil) as shares were sold vide open market transaction during the year.

*Computed excluding the equity shares held in trust for the employees under the ESOP scheme.

(f) No additional shares were allotted as fully paid up by way of bonus shares or for consideration other than cash and also no shares have been bought back during the last five years.

(i) The balance unexercised equity shares held by the ESOP Trust at the end of the year had been reduced against the share capital as if the trust is administered by the Company itself. The securities premium related to the unexercised equity shares held by the trust at the close of the year amounting to '' 228.44 lakhs (March 31,2023: '' 355.60 lakhs) has been reduced from securities premium account and adjusted against the loan outstanding from the ESOP Trust.

(ii) The shareholders of the Company, at their meeting held on September 27, 2021 had approved the "Asian Energy Services Limited - Employee Stock Option Plan - 2021" ("AESL ESOP 2021") authorising grant of maximum 380,744 stock options to the eligible employees. During the current year, the Company has granted Nil (March 31, 2023: 380,000) employee stock options to the eligible employees including that of group company pursuant to such scheme.

(iii) During the current year, 109,183 stock options were exercised by the employees (March 31,2023: Nil).

(iv) During the current year, no equity shares of the Company were purchased by the ESOP trust (March 31,2023: Nil). (h) Share warrants

The Allotment Committee of the Board of Directors of the Company, on August 21, 2023, considered and approved the allotment of 67,00,000 convertible share warrants on preferential basis to certain persons/ entities each carrying right upon being fully paid up, to subscribe one equity share of face value of '' 10 each at an issue price of '' 127.50 per share. Out of these warrants, the Company has allotted 28,50,000 equity shares during the year ended March 31,2024. The Company has complied with the provisions of section 42 and section 62 of the Companies Act, 2013 and the rules framed thereunder in relation to such preferential allotment on a private placement basis.

(a) Nature of security and terms of repayment of long term borrowings

The Company has availed vehicle loans. Interest rate charged ranges from 8.75% p.a. to 10% p.a. The vehicles financed through such borrowing are forming part of the property, plant and equipment and have been hypothecated for the said borrowings. The borrowings will be repaid by the Company in equal predetermined instalments over a period ranging from 39 to 48 months from the borrowings origination date with the last instalment repayable in F.Y. 2026-27.

(b) Working capital facilities from bank :

(i) Cash credit facility is secured by way of exclusive charge on certain fixed deposits and counter indemnity, hypothecation of stock and book debts of the Company. The facility is also secured by way of personal security of Mr. Kapil Garg (Managing Director), Mrs. Ritu Garg (Promoter) and Mr. Aman Garg (relative of promoter and managing director). The interest rate applicable to the facility is computed using prevailing MCLR plus spread (9.80% p.a. as on March 31,2024). These are repayable on demand.

(ii) During the current year, the Company has availed overdraft facilities which is secured by way of exclusive charge on certain fixed deposits of the Company. The interest rate applicable to the facility is computed using prevailing fixed deposits rate 1% (3.75% as on March 31,2024. These are repayable within a period of 1 year.

(c) The Company has utilized the borrowings for the specific purpose for which it was obtained.

(d) The Company is not declared willful defaulter by any bank or financial institution or lender during the year and it has complied with the applicable debt covenants, prescribed in the terms of borrowing.

25.2 : The Company has acquired an oil asset during the year for which the Company has estimated provision towards decommissioning as per the principles of Ind AS 37 ''Provisions, Contingent Liabilities and Contingent Assets’ for the future decommissioning of oil asset at the end of its economic life. The economic life of the oil asset is estimated on the basis of long- term production profile of the relevant oil asset. The decommissioning activity would be in the future for which the exact requirements that may have to be met when the removal event occur is uncertain.

2. Other monies for which the Company is contingently liable:

(b) The Hon’ble Supreme Court of India ("SC") by their order dated February 28, 2019, in the case of Surya Roshani Limited & others v/s EPFO, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Due to numerous interpretation issues relating to the applicability of SC judgement for the past period, if any, the impact is not ascertainable at present and consequently no effect has been given in the financial statements.

It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of pending resolution of the respective proceedings, as it is determined only on receipt of judgements/decisions pending with various authorities.

EE1 DISCLOSURES PERTAINING TO IND AS 116 - LEASES

The Company has lease contracts for its office premises and oilfield equipment. Generally, the Company is restricted from

assigning the leased assets. The Company’s obligation under its leases are secured by the lessor’s title to leased assets.

1. Recognition and derecognition Right-of-use assets:

(i) The net carrying value of right-of-use assets as at March 31, 2024 amounts to '' 161.17 lakhs (March 31, 2023: '' 299.13 lakhs) and has been disclosed separately in note 6 to the standalone financial statements.

2. The Company has recognised the following in the statement of profit and loss:

(i) Depreciation expense from right-of-use assets of '' 137.96 lakhs (March 31,2023: '' 418.82 lakhs) (Refer note 6).

(ii) Interest on lease liabilities of '' 14.34 lakhs (March 31,2023: '' 18.60 lakhs) (Refer note 33).

(iii) Expense amounting to '' 1,131.70 lakhs (March 31,2023: '' 1,035.60 lakhs) related to leases of low-value assets and leases with less than twelve months of lease term. These have been included under machine hire charges, vehicle hire charges and rent expenses (Refer note 30 and note 35).

(iv) Rental income amounting to ''40.73 lakhs (March 31,2023: Nil) related to assets given on lease with less than twelve months of lease term. It has been included other operating income (Refer note 28).

3. The total net cash outflow for the payment of lease liability and interest is '' 275.48 lakhs (March 31,2023: '' 496.17 lakhs). Hfli FAIR VALUE MEASUREMENTS

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

Fair value hierarchy:

Financial assets and financial liabilities measured at fair value in the Balance sheet are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The carrying amounts of trade receivable, cash and cash equivalents, other bank balances, loans, current security deposit, trade payables and other current financial liabilities are considered to be the same as their fair values, due to their short term nature. The fair value of security deposit has been calculated based on the cash flows discounted using an estimate of current lending rate.

The fixed deposit and non-current borrowing are with highly rated banks and financial institution at fair interest rate, and their carrying values approximates fair value.

The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at reporting date.

Fair value of financial assets at FVTOCI

The fair value of investments carried at FVTOCI is determined, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The fair value of these investments is categorized as Level 3 because the shares are neither listed on an exchange and there were no recent observable arm’s lenght transactions in the shares.

There are no transfers in either level during the reporting periods.

HH FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements. The Companies risk management is done in close co-ordination with the board of directors and focuses on actively securing the Company''s short, medium and long-term cash flows by minimizing the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below: Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company is exposed to credit risk from loans and advances to related parties, trade receivables, bank deposits and other financial assets. Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on such fixed deposits.

The Company does not have significant credit risk from loans given considering these are provided to related parties or to financial institution for shorter duration. Mutual fund investments are made in liquid and overnight plans of renowned asset management company only. The credit risk associated with bank, security deposits and mutual fund investments is relatively low.

The Company trades with recognised and credit worthy third parties. The Company periodically assesses the financial reliability of the counter party, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

Credit risk on trade receivables is limited as the Company''s customer base majorly includes reputed and large corporate groups and public sector enterprises. It is the Company''s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. Also, generally the Company does not enter into sales transaction with customers having credit loss history. In addition, trade receivable balances are monitored on an on-going basis with the result that the Company’s exposure to bad debts is not significant. In case of trade receivables due from related parties and in case of disputed trade receivables, the Company performs individual credit risk assessment and creates expected credit loss allowance (ECL) based on internal assessment. Further, the Company computes ECL on undisputed trade receivables (including those where ultimate customer is a non-related party) at each reporting date, based on provision matrix which is prepared considering historically observed overdue rate over expected life of trade receivables and is adjusted for forward-looking estimates.

b) For reconciliation of loss allowance on trade receivables, refer note 15.1.Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowings, trade payables, lease liabilities and other financial liabilities.

The Company’s principal sources of liquidity are cash and cash equivalents, current investments and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. The Company closely monitors its liquidity position and maintains adequate source of funding.

Maturities of financial liabilities :

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on the maturities for all non-derivative financial liabilities. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. For contractual maturities of lease liabilities, refer note 39.

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and net asset value (NAV) of mutual fund units will affect the Company’s income or the value of its holdings of financial instruments.

Mutual fund price risk

The value of unquoted mutual fund investments measured at fair value through profit and loss as at March 31,2024 is '' 340.93 lakhs (March 31,2023: '' 1,314.93 lakhs). A 10% change in value for year ended March 31, 2024 would result in an impact of '' 34.09 lakhs (March 31,2023: '' 131.49 lakhs) on profit/ (loss) before tax and other equity (holding all other variables constant).

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Companies functional currency. The Companies operations in foreign currency creates natural foreign currency hedge. This results in insignificant net open foreign currency exposures considering the volumes and operations of the Company.

An equal and opposite impact would be experienced in the event of decrease by a similar percentage.

Interest rate risk

This refers to risk to Company’s cash flow and profits on account of movement in market interest rates.

For the Company the interest risk arises mainly from interest bearing borrowings which are at floating interest rates. To mitigate interest rate risk, the Company closely monitors market interest and as appropriate makes use of hedged products and optimise borrowing mix / composition.

An equal and opposite impact would be experienced in the event of an opposite change in interest rate by a similar percentage.

The above calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

WHi CAPITAL MANAGEMENT

The Company objectives when managing capital are to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal structure to reduce the cost of capital. In order to maintain or adjust the Capital structure, the Company may adjust the amounts of dividends paid to shareholders, return capital to shareholders, issue new shares or sell new assets to reduce debt. The Company does not have externally imposed capital requirements.

Note: In the long run, the Company’s strategy is to maintain a gearing ratio within acceptable range as deemed appropriate by board of directors, which at present is to have less than 0.50.

1E1 EMPLOYEE BENEFITS1. Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, incentives and allowances, short terms compensated absences, etc., and the expected cost of bonus, ex-gratia are recognized in the year in which the employee renders the related service.

2. Long term employee benefits

(i) Defined benefit plan

Gratuity (funded) :

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

E. Assumptions

The actuarial calculations used to estimate commitments and expenses in respect of gratuity is based on the following assumptions which if changed, would affect the commitment''s size, funding requirements and expense:

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period. Sensitivities due to mortality and turnover are not material and hence impact of change due to these not calculated.

G. Risk exposure

The Company is exposed to a number of risks, the most significant of which are actual salary growth rate and reduction in discount rate in future, which can increase the obligation.

(ii) Defined contribution plan

Provident fund and employee''s state insurance corporation

The Company pays fixed contribution to the provident fund, employee''s state insurance corporation entities and labour welfare fund in relation to several state plans and insurances for individual employees. This fund is administered by the respective Government authorities, and the Company has no legal or constructive obligations to pay contributions in addition to its fixed contributions, which are recognized as an expense in the year that related employee services are received.

(iii) Share-based payment transactions

The shareholders of the Company, at their meeting held on September 27, 2021 had approved the "Asian Energy Services Limited - Employee Stock Option Plan - 2021" ("AESL ESOP 2021") authorising grant of not exceeding 380,744 stock options to the eligible employees. The scheme is designed to provide long term incentives for certain employees to deliver long term shareholders return. During the current year, the Company has granted Nil (March 31, 2023: 380,000) employee stock options convertible into equivalent equity shares to the eligible employees including that of group company pursuant to such scheme. The details of activity under the ESOP schemes are summarized below:

D. Other outstanding arrangements:

Kapil Garg and Ritu Garg have provided personal security towards cash credit facility availed by the Company.

The Holding Company has also provided a Corporate Guarantee to the bankers towards cash credit facilities availed by the Company. Such facility has a debit balance amounting to '' 1.79 lakhs as on March 31,2024 (March 31,2023 - credit balance of '' 1,557.14 lakhs).

^AThe figures does not include provision for gratuity since it is actuarially determined for the Company as a whole. Further, no stock options were granted to KMP during the current year (March 31,2023: 72,736). Further, 29,314 stock options are available with KMP’s as on March 31,2024 (March 31,2023: 72,736).

*The figures are based on contractual arrangement executed and does not include the impact of Ind AS.

** Provision towards outstanding loan and interest accrued thereon aggregating '' 208.50 lakhs was made during the previous year. Also, interest on loan receivable from such subsidiary has not been accrued in books of account considering the financial position of such subsidiary.

Notes:

(i) The closing amount pertaining to investment made in subsidiaries and joint ventures is not considered as a part of disclosure on outstanding balance due.

(ii) Represents Company’s share of expenses in joint operation at Indrora oilfield.

(iii) The closing balance with related parties are unsecured in nature. The settlement of receivable/ payable balances would be done through cash or other financial asset.

IE1 UN-HEDGED FOREIGN CURRENCY EXPOSURES

For un-hedged foreign currency exposure, refer section ''Foreign currency risk’ under note 41 - Financial Risk Management. H6i CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The Board of Directors of the Company had constituted CSR Committee.

During the current year, since the Company has not met the applicability criteria and hence, the Company has not carried out any CSR activities during the current year.

iii) Nature of CSR activities includes promoting education, healthcare, eradicating hunger, poverty and malnutrition, empowering women and rural development projects.

iv) The Company did not wish to carry forward the excess amount spent during the previous year.

v) The Company does not have any ongoing projects as at March 31,2023.

vi) There is no unspent amount of CSR activities as at March 31,2023 and March 31,2024.

vii) There is no related party transaction in relation to CSR expenditure.

F7i EVENTS OCCURRING AFTER THE REPORTING PERIOD

No adjusting or significant non-adjusting events have occurred between March 31,2024 and the date of authorization of these standalone financial statements.

PH SEGMENT INFORMATION

(a) The Company publishes standalone financial statements along with the consolidated financial statements. Accordingly, as per Ind AS 108 ''Operating Segments’, no disclosures related to the segments are presented in these standalone financial statements.

[El EXPLANATION IN RELATION TO INVESTMENT IN A SUBSIDIARY - ADMCC

As at March 31, 2024, the Company has an investment of '' 651.50 lakhs in its wholly owned subsidiary company, Asian Oilfield and Energy Services DMCC (''ADMCC’). Also, the Company has payable of '' 266.46 lakhs to ADMCC. The contract with a major customer of ADMCC was terminated during the previous year and in the current year, ADMCC has incurred losses amounting to '' 476.52 lakhs. While the discussion with the aforesaid customer is still on and ADMCC has legal rights available for claiming its receivables, ADMCC on prudent basis has recognized loss allowance of '' 166.89 lakhs on its net receivables towards such customer during the current year. As at March 31,2024, the reported net worth of ADMCC is positive however it is not adequate to cover the exposure in terms of investment which the Company is carrying as on that date. ADMCC is in process of entering into new revenue generating contracts which is expected to generate sufficient profits and cash flows in the forthcoming years. Also, ADMCC has certain capital assets that are completely depreciated but because of their utility, these assets have a value that is higher than the salvage amount. Basis above facts along with other relevant assessment carried out by the management of ADMCC, the Company believes that the reported net worth of ADMCC as at March 31,2024 is not reflective of its future financial position as the execution of new contracts and recovery of receivables shall further enhance ADMCC’s net worth. The Company’s management is confident of realizing the value of its investments in ADMCC and accordingly no impairment has been recognised in these standalone financial statements.

Note: During the current year, increase in contract assets is primarily due to lower progress billing as compared to revenue recognition during the year in certain projects which has also resulted in decrease in contract liability in the current year.

f) Cost to obtain or fulfil the contract:

(i) Amount of amortization recognized in Statement of Profit and Loss during the year : Nil (March 31,2023: Nil)

(ii) Amount recognized as contract assets in relation to cost incurred for obtaining contract as at March 31,2024 : Nil (March 31,2023: Nil)

g) In the normal course of business, the payment terms given to majority of the customers ranges from 30 to 60 days except retention monies which are due after the completion of the project as per the terms of contract.

EQ| CODE ON SOCIAL SECURITY, 2020

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period in which the Code becomes effective.

Above joint ventures are engaged in the business of providing engineering, procurement and construction services, and related services. It has been established as a separate entity (Association of Persons) and the Company has a proportionate residual interest in the net assets of the joint ventures. The Company is not required to have any investment in these entities as per the joint venture agreement. The summarized financial information of the joint ventures is given below:

KE1 OTHER STATUTORY INFORMATION AS PER SCHEDULE III TO THE ACT

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with Companies whose name has been struck off from the register of Companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with registrar of companies (ROC) beyond the statutory period except the below cases :

(iv) The Company has not traded or invested in Crypto currency or Virtual currency during the year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

EE1 ACQUISITION OF A PARTICIPATORY INTEREST IN AN OILFIELD (i) Background

Government of India (GOI) had awarded an oil field in the Cambay basin having surface coverage of 150.77 sq.km to Oilmax Energy Private Limited (Holding Company) for a period of 20 years. Pursuant to such award, a revenue sharing contract (RSC) was entered into between GOI and the Holding Company in September 2022. Such RSC allows for assignment of Participatory Interest (''PI'') to other parties with the prior consent of GOI.

Subsequently, a Farmout agreement and a joint operating agreement (JOA) were entered between the Company and Oilmax on April 08, 2023. Under this agreement, the Holding Company sold 50% of PI to the Company in this oilfield for a consideration of '' 1,770 lakhs (including indirect taxes). This agreement also provides for rights and obligations concerning operations and activities under the contract.

Post that, an application was filed with GOI for approval of such sale of PI to the Company. The GOI approved the sale of PI which was effective from June 30, 2023. As a result, an amendment was made to RSC which also included the Company in it.

As per joint operating agreement, the parties have rights to assets and obligation for the liabilities pertaining to the assets of a joint arrangment in their respective PI.

The above acquisition of PI is in a producing oil field which already had proved reserves (inputs) on which the operational process will be applied to achieve the sale of crude oil (output) and hence such acquisition constitute a business as per Ind AS 103 - "Business Combinations".

As a result of above acquisition, the Company will further strengthen its position in the oil and gas segment.

For the purpose of the valuation, the basis of value was fair value. Fair value is the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale.

In the present scenario, the Company has acquired the rights towards reserves of crude oil and hydrocarbons (natural resource) after purchasing 50% PI in a producing oil field. The underlying value of PI is derived from the reserves of such natural resources. The transaction was done by the Company for having access to such natural resource and the related well facility. The operations in such PI has been purchased are located in a specified region of Indrora, Gujarat. As on acquisition date, no brand that is acquired by the Company. No material customer contracts/ relationships exists as on the acquistion date. The business utilizes its own resource for supplying goods to customers and deploys its own sales force to interface with them. Further, there is no material assembled workforce acquired.

Basis the facts mentioned above, fair value of entire purchase consideration has been attributable towards a single class

of asset which is an oil asset under property, plant and equipment.

Notes :

(i) Ind AS 103 requires the identifiable assets and liabilities to be fair valued in order to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities. These valuations are conducted by external valuation experts. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by the management.

(ii) Discount rate of 20.62% has been used to determine free cash flows to the equity.

(iii) Tax rate of 25.17%, based on prevailing corporate tax rate in India, has been considered by the Company.

(iv) The acquisition contributed revenue from operations of '' 379.50 lakhs and profit before tax of '' 71.31 lakhs during the current financial year.

(v) The consideration of '' 1,770 lakhs (including indirect taxes) has been paid in cash by the Company.

(vi) Capital reserve arising on acquisition has been recognized directly in equity.

_^viwyiMa_¦_

Proved reserves are those quantities of petroleum that, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations.

EBI AUDIT TRAIL (EDIT LOG) FEATURE IN THE ACCOUNTING SOFTWARE

The Ministry of Corporate Affairs (MCA) introduced a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

From April 01,2023 to July 29, 2023, the Company used Tally.ERP 9 accounting software for maintaining its books of account. However, this software version did not have an audit trail (edit log) feature. To address this, the Company has migrated to TallyPrime Edit Log 2.1 version of the accounting software from July 29, 2023, which includes an audit trail (edit log) feature for recording all the relevant transactions.

---

Mar 31, 2023

Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting except for Interim dividend. In the 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 shareholder.

(i) The balance unexercised equity shares held by the ESOP Trust at the end of the year had been reduced against the share capital as if the trust is administered by the Company itself. The securities premium related to the unexercised equity shares held by the trust at the close of the year amounting to '' 355.60 Lakhs (March 31,2022 : '' 355.60 Lakhs) has been reduced from securities premium account and adjusted against the loan outstanding from the ESOP Trust.

(ii) The shareholders of the Company, at their meeting held on September 27, 2021 had approved the "Asian Energy Services Limited - Employee Stock Option Plan - 2021" ("AESL ESOP 2021") authorizing grant of maximum 380,744 stock options to the eligible employees. During the current year, the Company has granted 380,000 (March 31,2022: Nil) employee stock options to the eligible employees including that of group company pursuant to such scheme.

(iii) During the current year, no stock options were exercised (March 31,2022: 320,186 stock options).

(iv) During the current year, no equity shares of the Company were purchased by the ESOP trust vide open market transactions (March 31,2022: 320,186 equity shares).

(a) Nature of security and terms of repayment of long term borrowings

The Company has availed vehicle loans. Interest rate charged is fixed at 9.90% p.a for all loans except one loan which is at fixed rate of 10% p.a. The vehicles financed through such borrowing are forming part of the property, plant and equipment and have been hypothecated for the said borrowings. The borrowings will be repaid by the Company in equal predetermined instalments over a period of 48 months from the borrowing origination date.

(b) Working capital facilities from bank

(i) Working capital loan is secured by way of lien on certain fixed deposits and counter indemnity, hypothecation of stock and book debts of the Company. The facility is also secured by way of personal security of Kapil Garg (Director), Ritu Garg (Promoter) and Aman Garg (relative of promoter and director). The interest rate applicable to the facility is computed using 1 year MCLR plus spread (11.05 % p.a. as on March 31,2023). This loan is repayable on demand. Further, Oilmax Energy Private Limited has also provided a Corporate Guarantee to the bankers towards such working capital facilities.

(ii) The quarterly returns/statements of current assets filed by the Company with bank is in agreement with the books of accounts for all the quarters in which such returns/statements were required to be filed by the Company except for following instance:

2. Other monies for which the Company is contingently liable:

(b) The Hon’ble Supreme Court of India ("SC") by their order dated February 28, 2019, in the case of Surya Roshani Limited & others v/s EPFO, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Due to numerous interpretation issues relating to the applicability of SC judgement for the past period, if any, the impact is not ascertainable at present and consequently no effect has been given in the financial statements.

It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of pending resolution of the respective proceedings, as it is determined only on receipt of judgements/decisions pending with various authorities.

33. DISCLOSURES PERTAINING TO IND AS 116 - LEASES

The Company has lease contracts for its office premises and oilfield equipment. Generally, the Company is restricted from

assigning the leased assets. The Company’s obligation under its leases are secured by the lessor’s title to leased assets.

1. Recognition and derecognition Right-of-use assets:

(i) The Company has de-recognized right-of-use assets of Nil (March 31,2022: '' 30.34 Lakhs) during the year on account of changes in terms of the lease arrangements.

(ii) The net carrying value of right-of-use assets as at March 31, 2023 amounts to '' 299.13 Lakhs (March 31, 2022: '' 365.02 Lakhs) and has been disclosed separately in note 4 to the standalone financial statements.

2. The Company has recognized the following expenses in the Statement of Profit and Loss:

(i) Depreciation expense from right-of-use assets of '' 418.82 Lakhs (March 31,2022: '' 350.73 Lakhs) (Refer note 4).

(ii) Interest on lease liabilities of '' 18.60 Lakhs (March 31,2022: '' 15.57 Lakhs) (Refer note 27).

(iii) Expense amounting to '' 1,035.60 Lakhs (March 31,2022: '' 974.83 Lakhs) related to leases of low-value assets and leases with less than twelve months of lease term. These have been included under machine hire charges, vehicle hire charges and rent expenses (Refer note 25 and note 29).

3. The total net cash outflow for the payment of lease liability and interest is '' 496.17 Lakhs (March 31, 2022: '' 326.00 Lakhs).34. FAIR VALUE MEASUREMENTS

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

Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the Balance sheet are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows: Level 1: Prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Fair value of financial assets and liabilities measured at amortized cost

The carrying amounts of trade receivable, cash and cash equivalents, other bank balances, loans, current security deposit, trade payables and other current financial liabilities are considered to be the same as their fair values, due to their short term nature.

The fair value of security deposit has been calculated based on the cash flows discounted using an estimate of current lending rate.

The fixed deposit and non-current borrowing are with highly rated banks and financial institution at fair interest rate, and their carrying values approximates fair value.

Fair value of financial assets measured at FVTPL

The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at reporting date.

Fair value of financial assets at FVTOCI

The fair value of investments carried at FVTOCI is determined, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The fair value of these investments is categorised as Level 3 because the shares are neither listed on an exchange and there were no recent observable arm''s length transactions in the shares.

There are no transfers in either level during the reporting periods.

35. FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements. The Companies risk management is done in close co-ordination with the board of directors and focuses on actively securing the Company''s short, medium and long-term cash flows by minimizing the exposure to volatile financial markets. Longterm financial investments are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:

Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company is exposed to credit risk from loans and advances to related parties, trade receivables, bank deposits and other financial assets.

Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on such fixed deposits.

The Company does not have significant credit risk from loans given considering these are provided to related parties or to financial institution for shorter duration. Mutual fund investments are made in liquid and overnight plans of renowned asset management company only. The credit risk associated with bank, security deposits and mutual fund investments is relatively low.

The Company trades with recognized and credit worthy third parties. The Company periodically assesses the financial reliability of the counter party, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

Credit risk on trade receivables is limited as the Company''s customer base majorly includes reputed and large corporate groups and public sector enterprises. It is the Company’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. Also, generally the Company does not enter into sales transaction with customers having credit loss history. In addition, trade receivable balances are monitored on an on-going basis with the result that the Company''s exposure to bad debts is not significant. In case of trade receivables due from related parties and in case of disputed trade receivables, the Company performs individual credit risk assessment and creates expected credit loss allowance (ECL) based on internal assessment. Further, the Company computes ECL on undisputed trade receivables at each reporting date, based on provision matrix which is prepared considering historically observed overdue rate over expected life of trade receivables and is adjusted for forward-looking estimates.

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the Companies functional currency. The Companies operations in foreign currency creates natural foreign currency hedge. This results in insignificant net open foreign currency exposures considering the volumes and operations of the Company.

b) For reconciliation of loss allowance on trade receivables, refer note 10.1 Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowings, trade payables, lease liabilities and other financial liabilities.

The Company’s principal sources of liquidity are cash and cash equivalents, current investments and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. The Company closely monitors its liquidity position and maintains adequate source of funding.

Maturities of financial liabilities :

The tables below analyze the Company’s financial liabilities into relevant maturity groupings based on the maturities for all non-derivative financial liabilities. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. For contractual maturities of lease liabilities, refer note 33.

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and net asset value (NAV) of mutual fund units will affect the Company’s income or the value of its holdings of financial instruments.

Mutual fund price risk

The value of unquoted mutual fund investments measured at fair value through profit and loss as at March 31, 2023 is '' 1,314.93 Lakhs (March 31, 2022: Nil). A 10% change in value for year ended March 31, 2023 would result in an impact of '' 131.49 Lakhs (March 31,2022: Nil).

Interest rate risk

This refers to risk to Company’s cash flow and profits on account of movement in market interest rates.

For the Company the interest risk arises mainly from interest bearing borrowings which are at floating interest rates. To mitigate interest rate risk, the Company closely monitors market interest and as appropriate makes use of hedged products and optimise borrowing mix / composition.

An equal and opposite impact would be experienced in the event of an opposite change in interest rate by a similar percentage. The above calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

36. CAPITAL MANAGEMENT

The Company objectives when managing capital are to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal structure to reduce the cost of capital. In order to maintain or adjust the Capital structure, the Company may adjust the amounts of dividends paid to shareholders, return capital to shareholders, issue new shares or sell new assets to reduce debt. The Company does not have externally imposed capital requirements.

37. EMPLOYEE BENEFITS1. Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, incentives and allowances, short terms compensated absences, etc., and the expected cost of bonus, ex-gratia are recognized in the year in which the employee renders the related service.

2. Long term employee benefits

(i) Defined benefit plan

Gratuity (funded) :

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The sensitivity analyzes above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognized in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period. Sensitivities due to mortality and turnover are not material and hence impact of change due to these not calculated.

(ii) Defined contribution plan

Provident fund and employee''s state insurance corporation

The Company pays fixed contribution to the provident fund, employee''s state insurance corporation entities and labour welfare fund in relation to several state plans and insurances for individual employees. This fund is administered by the respective Government authorities, and the Company has no legal or constructive obligations to pay contributions in addition to its fixed contributions, which are recognized as an expense in the year that related employee services are received.

D. Other outstanding arrangement:

Kapil Garg and Ritu Garg have provided personal security towards working capital loan availed by the Company.

The Holding Company has also provided a Corporate Guarantee to the bankers towards working capital facilities availed by the Company. The amount outstanding towards such borrowings is '' 1,557.14 Lakhs as on March 31, 2023 (March 31,2022 : '' 401.17 Lakhs).

^A The figures does not include provision for gratuity since it is actuarially determined for the Company as a whole. Further, 72,736 stock options were granted to KMP during the year.

* The figures are based on contractual arrangement executed and does not include the impact of Ind AS adjustments.

** Provision towards outstanding loan and interest accrued thereon aggregating '' 208.50 Lakhs has been made during the current year.

Notes:

The closing amount pertaining to investment made in subsidiaries and joint ventures is not considered as a part of disclosure on outstanding balance due from subsidiaries.

39. UN-HEDGED FOREIGN CURRENCY EXPOSURES:

For un-hedged foreign currency exposure, refer section ''Foreign currency risk’ under Note 35 - Financial Risk Management.

41. EVENTS OCCURRING AFTER THE REPORTING PERIOD

No adjusting or significant non-adjusting events have occurred between March 31,2023 and the date of authorisation of these standalone financial statements.

42. SEGMENT INFORMATION

(a) The Company publishes standalone financial statements along with the consolidated financial statements. Accordingly, as per Ind AS 108 ''Operating Segments’, no disclosures related to the segments are presented in these standalone financial statements.

43. EXPLANATION IN RELATION TO INVESTMENT IN A SUBSIDIARY - ADMCC

As at March 31, 2023, the Company has an investment of '' 651.50 Lakhs ( March 31, 2022 : '' 651.50 Lakhs) in its wholly owned subsidiary company, Asian Oilfield and Energy Services DMCC (''ADMCC''). Also, the Company has payable of '' 436.89 Lakhs (USD 531,391) as on March 31,2023 [March 31,2022: '' 774.47 Lakhs (USD: 1,021,627)] to ADMCC. In the current year, ADMCC has incurred losses amounting to '' 3,806.81 Lakhs (USD 4,735,349) and the contract with its only customer has been terminated. ADMCC has contractual right to receive the outstanding amount from its customer towards the work carried out till the date of suspension of work, in addition to other remedies available under the contract. The customer of ADMCC has been settling its obligations on regular basis and post suspension of project, ADMCC has been able to realise significant amount of its receivables. At present, such customer is in advance stage of carrying out novation of one of the vendor’s balance of '' 2,119.34 Lakhs (USD 2,577,744), pursuant to which the project liability and customer receivable shall reduce with an equivalent amount. ADMCC is confident of the recoverable value of its property, plant and equipment and has some capital assets that are completely depreciated, but because of their utility, these assets have a value that is higher than the salvage amount. The management remains positive regarding realization of project related assets and settling project related liabilities based on discussion with the aforesaid customer as part of its overall settlement. As at March 31, 2023, the net worth of ADMCC is '' 893.84 Lakhs (USD 1,087,169) which is higher than the carrying value of investment in the books of the Company.

Basis the facts mentioned above and considering the expected settlement between ADMCC and its customer in foreseeable future, management is confident of realising the value of its investments in ADMCC and accordingly no impairment has been recognized in the standalone financial statements.

f) Cost to obtain or fulfil the contract:

(i) Amount of amortization recognized in Statement of Profit and Loss during the year : Nil (March 31,2022: Nil)

(ii) Amount recognized as contract assets in relation to cost incurred for obtaining contract as at March 31, 2023 : Nil (March 31,2022: Nil)

g) In the normal course of business, the payment terms given to majority of the customers ranges from 30 to 60 days. 46. CODE ON SOCIAL SECURITY, 2020

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period in which the Code becomes effective.

48. OTHER STATUTORY INFORMATION AS PER SCHEDULE III TO THE ACT

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with Companies whose name has been struck off from the register of Companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with registrar of Companies beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual currency during the year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) 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 (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company has complied with number of layers prescribed under section 2(87) of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

These are the summary of significant accounting policies and other explanatory information referred to in our report of even date.

---

Mar 31, 2018

CORPORATE INFORMATION

Asian Oilfield Services Limited (the “Company” or “AOSL”) is a Public Limited company domiciled in india. The company having CIN L23200HR1992PLC052501, is incorporated under the provisions of the companies act, 1956 and is listed on the Bombay Stock Exchange (BSE). The Company is an oilfield service company and reservoir imaging company, offering a suite of geophysical services specialising in land and well seismic services and operation and maintenance services for oilfields. 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 Unit No. 1110, 11th Floor, JMD Megapolis, Sector-48, Sohna Road, Gurugram-122018 (Haryana).

Note 1.1: On November 13, 2017, the Company, acquired 49% of the total equity shares of Optimum Oil & Gas Private Limited, a India based company, engaged in the exploring the opportunity as Oil and gas service provider. The total consideration for the said acquisitions was iNR 0.49 Lacs. On January 24, 2018, the company disposed 26% of the aforesaid equity stake in Optimum Oil & Gas Private Limited for an aggregate consideration of INR 0.26 Lacs.

The Company has not recognised deferred tax asset as it is not probable to have future taxable profit. The Company has prudently decided not to recognise deferred tax assets on the business losses of INR 5,577.26 Lacs and unabsorbed depreciation of INR 2,773.49 Lacs as at March 31, 2018. this business losses can be carried forwarded 8 years from the respective years whereas unabsorbed depreciation can be carried forwarded indefinitely and have no expiry dates.

(d) Terms and rights attached to equity shares

The company has only one class of equity shares having a par value of WR 10 per share. each holder of equity share is entitled to one vote per share. The company declares and pays dividends in indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the 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 shareholder.

(f) During the year ended March 31, 2017, the company had allotted 12.50 lakh shares at an issue price of iNR 165 each, par value of iNR 10 per share, security premium of iNR 155 per share on preferential basis to a non-resident investor. With respect to aforesaid allotment, the Company had received entire subscription money amounting to INR 2,062.50 Lacs (including premium of INR 1,937.50 Lacs) under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

(g) The company allotted, on preferential basis, 10,000,000 equity warrants to the promoter and 4,500,000 equity warrants to a nonresident (“allottees”) in December 2016, convertible into equity shares of INR 10 each at the option of allottees any time within 18 months post allotment at an issue price of iNR 80 each. in this regard, the company received iNR 5,800 Lacs in the previous year being 50% of the subscription amount as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Further, during the year ended March 31, 2018, the company received iNR 3,000 Lacs being the balance 50% allotment money from the promoter with respect to 7,500,000 equity warrants and received iNR 1,800 Lacs from non-resident allottee with respect to 4,500,000 equity warrants and allotted equivalent number of equity shares against the same upon the option of conversion being exercised by the allottees.

(h) No additional shares were allotted as fully paid up by way of bonus shares or for consideration other than cash and also no shares have been bought back during the last five years.

Terms of Borrowing:

(i) Term Loan from bank

term loan from bank is repayable in ten equal quarterly instalments till December 2019. interest rate charged is 6 month LIBoR 1.90%. The loan is secured by 5,234,297 equity shares of the Holding Company and second pari pasu charge over Company’s all current assets and moveable fixed assets. Further, Company is required to maintain debt service reserve account of INR 200 Lacs.

(ii) Working capital loans from banks

Company has availed two overdraft facilities from State Bank of India, both secured by pledged of fixed deposits and as repayable on demand.

(a) first facility carries an interest rate of 9% p.a

(b) another facility carries an interest rate of 8% p.a

As at April 1, 2016, company had cash credit facility availed from State Bank of India which was discontinued by the company on January 11, 2017 which carried a rate of interest of 16.70 % per annum at monthly rests and was repayable on demand (sanctioned limit: INR 600 Lacs). This cash credit facility was primarily secured by hypothecation of all chargeable current assets of the company and was guaranteed by letter of comfort from Samara capital Partners Fund I Limited, Mauritius till October 24, 2016. The collateral security for this cash credit facility were: (a) Exclusive charge by way of equitable mortgage over the Company’s office premises situated at 701/704, Manubhai tower, 7th floor, B/wing, Sayajaigung, Baroda measuring 2056 Sq. feet. the same is now pledged as collateral security for availing non-fund based sanction limit of INR 1,000 lacs, from State Bank of India.

(b Exclusive charge by way of equitable mortgage over shop no. 29 , Payal Co-op Housing society, Sayajaigung, Baroda, belonging to the company and measuring 260 sq. feet. the same is pledged as collateral security for availing non-fund based sanction limit of INR 1,000 lacs, from State Bank of India.

(c) Pledge of 22,000,000 shares of the Company owned by Samara Capital Partners Fund I Limited upto 15 November 2016. the same number of shares owned by Oilmax energy Private limited are pledged as collateral security for availing non-fund based sanction limit of INR 1,000 lacs from State Bank of India.

(d) First charge by way of hypothecation over the fixed assets including plant and machinery and oilfield equipment and excluding those items covered under (a) and (b) above. The same are pledged as collateral security for availing non-fund based sanction limit of INR 1,000 lacs from State Bank of India.

(e) Pledge over the term deposit receipts of INR 509.00 Lacs including accrued interest thereof up to 24 October 2016.

(iii) Inter corporate deposits

(a) The Company has no outstanding intercorporate deposits as at March 31, 2018.

(b) As at March 31, 2017, the Company has outstanding inter-corporate deposits from:

- Oilmax energy Private limited amounting to INR 3,700 lacs, repayable on demand and carried rate of interest of 10.00 % per annum.

- thriveni earthmovers Private limited amounting to INR 1,100 lacs, repayable on demand and carried rate of interest of 15.00 % per annum.

(c) As at April 1, 2016, the Company has outstanding inter-corporate deposits from:

- Global Coal and Mining Private Limited amounting to INR 1,150 Lacs, repayable on demand and carried rate of interest of 16.00 % per annum.

- thriveni earthmovers Private limited amounting to INR 1,100 lacs, repayable on demand and carried rate of interest of 15.00 % per annum.

2.1 The company had an ongoing legal case with one of its customer for which the matter was pending before the Jorhat District court which has directed the matter to the outside expert conciliation committee. The company received recommendation dated March 7, 2018 from outside expert conciliation committee which has been accepted by both the parties and accordingly provision aggregating inR 512.98 lacs has been made towards this matter.

I t is not practicable for the company to estimate the timing of cash outflows, if any, in respect of our pending resolution of the respective proceedings as it is determined only on receipt of judgements/decisions pending with various authorities.

LEASES

The Company has obtained certain premises for its business operations (including furniture and fixtures, therein as applicable) under cancellable and non cancellable operating lease or leave and license agreements ranging from 11 months to 5 years or longer which are subject to renewal at mutual consent. The cancellable lease arrangements can be terminated by either party after giving due notice. Lease payments are recognised in the Statement of Profit and Loss under ‘Rent’ in Note 27.

3 fair value measurements

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

Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Table showing carrying amount and fair values of financial assets and liabilities by category.

Valuation technique used to determine fair value

Quoted prices (unadjusted) in active markets for financial instruments.

Fair value of financial assets and liabilities measured at amortised cost

the carrying amounts of trade receivable, cash and cash equivalents, other bank balances, employee advances, unbilled revenue, loans, current security deposit and working capital loan, trade payables and other current financial liabilities are considered to be the same as their fair values, due to their short term nature.

the fair value of security deposit has been calculated based on the cash flows discounted using the current lending rate.

The fixed deposit and non-current borrowing are places with highly rated banks at fair interest rate, and their carrying values approximates fair value.

financial risk management

the company’s activities expose it to credit risk, liquidity risk and market risk. this note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements. The Companies risk management is done in close co-ordination with the board of directors and focuses on actively securing the companies short, medium and long-term cash flows by minimizing the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:

credit risk

credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. the company is exposed to credit risk from loans and advances to related parties, trade receivables, bank deposits and other financial assets.

Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on such fixed deposits. The Company periodically assesses the financial reliability of the counter party, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. individual limits are set accordingly. the company trades with recognized and credit worthy third parties. it is the companies policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, trade receivable balances are monitored on an on-going basis with the result that the Companies exposure to bad debts is not significant. An impairment analysis is performed at each reporting date on an individual basis for major clients. Also the company does not enter into sales transaction with customers having credit loss history.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowings, trade payables and other financial liabilities.

The company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. The company closely monitors its liquidity position and maintains adequate source of funding.

Maturities of financial liabilities:

The tables below analyse the Companies financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the companies income or the value of its holdings of financial instruments.

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the companies functional currency. The Companies operations in foreign currency creates natural foreign currency hedge. This results in insignificant net open foreign currency exposures considering the volumes and operations of the company.

*Holding all other variables constant

An equal and opposite impact would be experienced in the event of decrease by a similar percentage.

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. The companies exposure to the risk of changes in market interest rates relates primarily to the companies long-term debt obligations with floating interest rates.

The companies investments in fixed deposits are at fixed interest rates.

The exposure of the companies borrowing to interest rate changes at the end of the reporting period are as follows:

An equal and opposite impact would be experienced in the event of an increase by a similar percentage.

The risk estimates provided assume a parallel shift of 50 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

price risk:

The Companies exposure to price risk arises from investments in debt fund held by the Company and classified in the balance sheet as fair value through profit and loss except investments in subsidiaries. However, Company has insignificant value of investment in debt funds and hence the exposure to change in price risk is also insignificant.

4 capital management

The company objectives when managing capital are to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal structure to reduce the cost of capital. in order to maintain or adjust the capital structure, the company may adjust the amounts of dividends paid to shareholders, return capital to shareholders, issue new shares or sell new assets to reduce debt.

Loan covenants

Under the terms of the major borrowing facilities, the Company is required to comply with the following financial covenants:

1) Total Debt to EBIDTA ratio shall not exceed 1.5x (applicable on the consolidated financial statements of the Company).

2) Funded facilities (both working capital and term loan) not to exceed INR 5,000 Lacs excluding the RBL term loan facility of INR 1,800 Lacs and Non-funded credit facilities not to exceed INR 5,000 Lacs (applicable on the consolidated financial statements of the company).

3) Total outside liabilities to tangible net worth ratio shall not exceed 1.1x (applicable on the standalone financial statements of the company).

5 Femployee benefits

1. Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as Salaries, incentives and allowances, short terms compensated absences, etc., and the expected cost of bonus, ex-gratia are recognised in the year in which the employee renders the related service.

2. Long term employee benefits

(i) Defined benefit plan

Gratuity :

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

A. Obligations and assets

Movement in the present value of projected benefit obligation for gratuity

E. Assumptions

the actuarial calculations used to estimate commitments and expenses in respect of gratuity is based on the following assumptions which if changed, would affect the commitment’s size, funding requirements and expense:

the sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. it is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

(ii) Defined contribution plan

(a) Provident fund and employee’s state insurance corporation

The Company pays fixed contribution to the provident fund and employee’s state insurance corporation entities in relation to several state plans and insurances for individual employees. this fund is administered by the respective Government authorities, and the Company has no legal or constructive obligations to pay contributions in addition to its fixed contributions, which are recognised as an expense in the year that related employee services are received.

Contribution to defined contribution plan recognised as employee benefit expenses

(b) Compensated absences

The Company does not have any liability towards compensated leaves as at March 31, 2018 (31 March 2017 - Nil, April 1, 2016 - iNR 9.23 Lacs).

(iii) Share-based payment transactions

The Company has instituted ‘Employees’ Stock Option Plan’ under which the stock options have been granted to employees. The scheme was approved by the shareholders at the Extra Ordinary General Meeting held on August 23, 2017. Under the scheme, company granted 174,302 stock option with exercise price of iNR 165 per share on August 24, 2017. The options scheme would vest in two years from the grant date and exercise of such vested options would be done subsequently in maximum of three tranches.

The details of activity under the ESOP scheme are summarised below:

6 RELATED pARTY DIScLOSuRES

Name of related parties

a) Holding Company

Oilmax Energy Private Limited (w.e.f. November 16, 2016)

b) Subsidiary company

AOSL Petroleum Pte limited Asian Oilfield & Energy Services DMCC

c) Step down subsidiary company

Ivorene Oil Services Nigeria Limited (vide Share Transfer Agreement dated 8 February 2017, Ivorene became subsidiary of Asian Oilfield & Energy Services DMCC)

d) Joint venture

Optimum Oil & Gas Private Limited (vide Share Purchase Agreement dated November 10, 2017)

e) Individuals having significant influence over the Company by virtue of owning indirect interest in the voting power Mr. Kapil Garg - Director of Holding company

Ms. Ritu Garg - Director of holding company

f) Key Management Personnel

Mr. Rohit Agarwal - Whole Time Director (w.e.f. August 5, 2016)

Mr. Ashutosh Kumar - Chief Executive Officer (w.e.f. March 1, 2017)

Mr. Gaurav Gupta - Director Mr. Rabi Narayan Bastia - Director

Mr. Ajit Kapadia - Independent Director (upto 16 January 2018)

Mr. Naresh chandra Sharma - independent Director Mr. Kadayam Ramanathan Bharat - independent Director Ms. Anusha Mehta - independent Director

Ms. Shweta Vaibhav Jain - Company Secretary (w.e.f 13 February 2018)

Ms. Kanika Bhutani - Company Secretary (upto 31 January 2018)

Mr. Ashwin Khandke - Whole Time Director (upto April 21, 2016)

Mr. Rahul Jain - Chief Financial Officer* ^A(September 1, 2016 to February 16, 2018)

*The Company did not have any Chief Financial Officer from September 18, 2015 till August 31, 2016.

AThe Company did not have any Chief Financial Officer from 16 February 2018 till March 31, 2018.

7 corporate social responsibility (csr) expenditure

In view of inadequate profits, Company is not liable to make any CSR expenditure for the year.

8 AUTHORISATION OF FINANciAL STATEMENTS

The financial statements for the year ended March 31, 2018 were approved by the Board of Directors on May 30, 2018.

9 EVENTS OccURRING AFTER THE REPORTING PERIOD

No adjusting or significant non-adjusting events have occurred between March 31, 2018 and the date of authorisation of these standalone financial statements.

10 FIRST TIME ADOPTION OF INDIAN AccOUNTING STANDARDS

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1 April 2017, with a transition date of April 1, 2016. ind AS 101-First-time Adoption of indian Accounting Standards requires that all ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended March 31, 2018 for the Company, be applied retrospectively and consistently for all financial years presented.

Further, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in ind AS 101.

A. Set out below are the Ind AS IOI optional exemptions availed as applicable and mandatory exceptions applied in the transition from Indian GAAp to Ind AS.

Deemed cost of property, plant and equipment

The Company has opted para D7 AA and accordingly considered the Indian GAAP carrying value of property, plant and equipments and intangible assets as deemed cost as at transition date.

Deemed cost of investments

The Company has opted to continue with the carrying values measured under the Indian GAAP and use that carrying value as the deemed cost for investment in subsidiaries on the date of transition to ind AS.

De-recognition of financial assets and liabilities

The Company has elected to apply de-recognition requirements for financial assets and liabilities under Ind AS 109 prospectively for transactions occurring on or after the date of transition to ind AS.

Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist on the date of transition to Ind AS. Further, the Company has opted para B8C and accordingly considered fair value of the financial asset at the transition date as the amortised cost of that financial assets.

estimates

Upon an assessment of the estimates made under Indian GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS except as a part of transition where estimates for impairment of financial assets based on expected credit loss model were required by Ind AS and not required by Indian GAAP.

c. Notes to first time adoption of Ind AS

1. Financial Guarantee

Under the Indian GAAP, financial guarantee given was disclosed as a contingent liability.

Under Ind AS, financial guarantee contracts are considered as financial liabilities and are measured at initially at fair value. Subsequently, it is measured at higher of (i) an amount initially recognised less the cumulative amount of income recognised under Ind AS or (ii) amount of loss as per requirements of Expected Credit Loss.

2. Security deposit

Under the Indian GAAP, interest free refundable security deposits are recorded at their transaction value. Under Ind AS, such deposits are initially recognised at fair value as financial assets. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent and recognised as rent expenses over the lease term on a straight line basis. Financial assets are subsequently measured at amortised cost and finance income is recognized using effective interest rate method.

3. Other comprehensive income

Under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit and loss. Under the Indian GAAP, these re-measurements were forming part of the Statement of Profit and Loss for the year.

4. effect of ind AS adoption on statement of cash flow for the year ended March 31, 2017

the ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended March 31, 2017 as compared with the Indian GAAP.

11 SEGMENT INFORMATION

(a) The company is principally engaged in a single business segment, viz. “Oilfield services”.

(b) Revenue by region of domicile of customer’s location

---

Mar 31, 2016

c) Reconciliation of equity shares outstanding at the beginning and at the end of the reporting financial year:

There is no movement in the equity share capital during the current and comparative period.

d) Description of the rights, preferences and restrictions attached to equity shares :

The Company has only one class of equity shares having par value of H10 per share. Each holder of equity shares is entitled to one vote per share. In the event of the liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

e) Details of equity shareholders holding more than 5% shares in the Company:

*The above information is furnished as per the shareholders register as on March 31, 2016 and March 31, 2015 respectively(Also refer note 40)

f) As at March 31, 2016, 577,683 shares (as at March 31, 2015: 577,683 shares) of H10 each were reserved for issuance towards outstanding employee stock options granted.

The ESOS compensation committee of the Company at their meeting held on December 07, 2010 has granted 577,683 stock options to the eligible employees (38), under the Employees Stock Option Scheme-2010 (ESOS-2010) at the exercise price of H55.70 per option, being the latest available price on the stock exchange prior to the date of grant. Out of 38 employees to whom options were granted, 5 employees are continuing in the Company, having the right to exercise option resulting in 46,055 shares. However, during the current year, the allottees have waived their right for availment of the aforesaid options. Hence, as on date no employee stock options are pending for exercise.

g) No additional shares were allotted as fully paid up by way of bonus shares or for consideration other than cash and also no shares have been bought back during the last five years.

Notes:

a. Cash Credit from Bank:

i) Cash Credit ("CC") from bank is sanctioned for a period of 12 months up to July 16, 2016 and is repayable on demand, carrying a rate of interest of 16.70 % per annum at monthly rests (Sanctioned limit: Rs.60 million).

ii) Primary security :

Cash credit from bank is primarily secured by hypothecation of all chargeable current assets of the Company.

iii) Collateral security :

a) Exclusive charge by way of equitable mortgage over Company''s office premises situated at 701/704, Manubhai tower , 7th floor, B/wing, Sayajaigung, Baroda measuring 2056 Sq. feet.

b) Exclusive charge by way of equitable mortgage over shop no. 29 , Payal Co-op Housing society, Sayajaigung, Baroda, belonging to Company and measuring 260 sq. feet.

c) Pledge of 2.2 million shares of the Company owned by Samara Capital Partners Fund I Limited.

d) First charge by way of hypothecation over the fixed assets including plant and machinery and equipments viz. Logger vans, seismic recording systems, drilling rigs and units, air compressors, RAM, digital cables, geophone strings, probes, radio sets, seismic cables, batteries etc and excluding those under items (a) & (b) above.

e) Pledge over the term deposit receipts of H50.9 million including accrued interest thereof.

iv) Cash Credit facility is guaranteed by letter of comfort of Samara Capital Partners Fund I Limited, Mauritius.

b. Inter corporate deposits - Unsecured

(i) Includes Rs.115 million from Global Coal and Mining Private Limited carries rate of interest of 16% per annum at monthly rests repayable on demand.

(ii) Includes Rs.110 million from Thriveni Earth movers Private Limited repayable on demand and carries rate of interest of 15% per annum at quarterly rests repayable on demand.

Note

Out of deposits of Rs.72.96 million, H44.88 million is pledged with a bank for availing cash credit limit. Remaining deposits are given as margin money to banks to provide performance guarantees to customers.

b. Pending litigation with a customer:

The Company had entered into a contractual agreement with a customer, Oil and Natural Gas Corporation Limited ("ONGC") to provide 3D seismic services amounting to H512.9 million. The Company has recorded revenue and receivables amounting to H40.6 million till March 31, 2016 against the services already delivered. As per the terms of the contract the mobilization of the project should have been completed by October 1, 2015.

The Company was however able to complete the mobilization by December 28, 2015 owing to delay caused by acts and inactions on the part of ONGC. This delay led to liquidated damages of H33.3 million being levied by ONGC.

ONGC vide its correspondence dated March 28, 2016 sent a show cause notice to the Company wanting to invoke the termination clause of the contract and bank guarantee of Rs.51.29 million on grounds of non-satisfactory performance by the Company.

Immediately there upon, the Company initiated legal proceedings and filed arbitration petition under Section 9 of the Arbitration and Conciliation Act, 1996 with District court, Jorhat on the ground that the Company was not provided with adequate security by ONGC to enable it to carry out its obligations under the contract and has therefore challenged the levy of liquidated damages and prayed for restraining ONGC from invoking the bank guarantee.

District Court, Jorhat vide its order dated April 21, 2016, did not grant an order of injunction and only show caused ONGC. The Company, upon legal advice, filed an appeal before the Gauhati High Court and the Gauhati High Court has issued an order of injunction restraining ONGC from invoking the performance bank guarantee till the disposal of the arbitration proceedings and also passed status quo order with regard to the aforesaid correspondence dated March 28, 2016 issued by ONGC. Next date of hearing at District Court, Jorhat is June 24, 2016.

The Company has been legally advised that it has good case on merits in respect of these matters. Accordingly, the management has not recorded provision in relation to liquidated damages and amount claimed (i.e. amount of bank guarantee) by the customer on the grounds of non-satisfactory performance by the Company.

1. 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.The disclosure details of dues to micro and small enterprises as defined under the Micro Small and Medium Enterprises Development Act, 2006 ["MSMED Act"] are as below:

2. Leases

i. For assets given under operating lease agreements:

The Company has not leased any assets during the year.

ii. For assets taken on operating lease agreements :

The Company has taken various premises and warehouse under operating lease agreements. These are generally cancellable and are renewable by mutual consent on mutually agreed terms. There is no sublease payments expected to be received under non-cancellable subleases at the balance sheet date and no restriction is imposed by lease arrangements.

Lease payments for the year ended March 31, 2016 are Rs.10.34 million (Previous year: Rs.11.21 million).

3. Employee benefits

a. Gratuity

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company''s financial statements as at March 31, 2016.

Notes:

a. The 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. The salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.

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

b. Compensated absences

Net liability recognized in respect of compensated absences in balance sheet:

i. The 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.

ii. The salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.

c. The amount recognized in respect of provident and other funds recognized in the statement of profit and loss

4. Deferred income tax

The company has not recorded the deferred tax asset on unabsorbed business losses and depreciation in absence of virtual certainty of its realization.

5. Derivative Instruments

There are no foreign currency exposures that are covered by derivative instruments as on March 31, 2016 (Previous year: Rs. Nil). Details of foreign currency exposures that are not hedged by any derivative instruments or otherwise are as under:

6. Current asset, loans and advances

In opinion of the Board of Directors, the current assets, loans and advances have a value realization 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.

7. As at March 31, 2016, the Company has certain old trade receivables, short term loans and advances and long term loans and advances amounting to Rs.60.12million, Rs.53.28 million and Rs.12.87million respectively (as at March 31, 2015: H35.65million, Rs.102.11 million and Rs.18.12million respectively).The Company is reasonably certain that the same are recoverable in near future, hence no provision is required on the same.

8. Details of loans and advances to subsidiary companies in which directors are interested (as required by Regulation 34(3) of the SEBI (Listing obligations and disclosure requirement) regulations, 2015):

9. Subsequent event

On May 23, 2016 the holding Company "Samara Capital Partners Fund I Limited" has entered into an Share Purchase Agreement ("SPA") with Oilmax Energy Private Limited "Acquirer", an integrated oil and gas Company, with a balanced portfolio spreading from exploration, production, engineering procurement and construction (EPC), operation and maintenance of gas business, head office in Sion (East), Mumbai. Pursuant to the SPA, the Acquirer agreed to acquire 12,572,600 equity shares representing 56.32% of fully paid-up equity share capital of the Company in two tranches at a price of H23.86 per share aggregating to Rs.299.98 million. The aforesaid transaction has triggered open offer obligation as per the SEBI (Substantial Acquisition of Shares and Takeovers) regulations, 2011.Consequently, the Acquirer has made an open offer to all the public shareholders of the Company for acquisition of 5,804,356 equity shares representing 26% of the fully paid up equity share capital of the Company at a price of H32.40 per equity share.

10. As per the Transfer pricing norms applicable in India, the Company is required to use certain specified methods in computing arm''s length price of transactions between the associated enterprises and maintain the prescribed information and documents related to such transactions. The appropriate method to be adopted will depend on the nature of the transactions/class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial year.

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

This is the summary of significant accounting policies and other explanatory information referred to in our report of even date.

---

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.