Mar 31, 2015
1. Basis of preparation of financial statement
The company maintains its accounts on accrual basis following the
historical cost convention , in accordance with generally accepted
accounting principles ["GAAP"] in compliance with the provisions of
the Companies Act, 2013 and the Accounting Standards as specified in
the Companies (Accounting Standards) Rules, 2006 read with Rule 7(1) of
the Companies (Accounts) Rules,2014 issued by the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013. Further,
the guidance notes/announcements issued by the Institute of Chartered
Accountants of India (ICAI) are also considered, whether applicable
except to the extent where compliance with other statutory
promulgations override the same requiring a different treatment.
2. Use of estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets & liabilities and disclosure relating to
contingent liabilities as at the date of financial statements and
reported amounts of income and expenses during the period. Accounting
estimates could change from period to period. Actual results could
differ from those estimates. Appropriate changes in estimates are made
as the Management becomes aware of change in circumstances surrounding
the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made, if material, their
effects are disclosed in the notes to the financial statements.
The management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. An impairment loss for an asset
is reversed if, and only if, the reversal can be related objectively to
an event occurring after the impairment loss was recognized. The
carrying amount of an asset is increased to its revised recoverable
amount, provided that this amount does not exceeds the carrying amount
that would have been determined (net of any accumulated amortization).
3. Revenue Recognition
Revenue is primarily derived from oil & gas exploitation and other
allied services. The same is accounted for by the Company on the basis
of Gross value of work done.
Profit on sale of fixed assets / investments are recorded on transfer
of title from the company and are determined as the difference between
the sale price and carrying value of the fixed asset / investments.
Interest is recognized using the time-proportion method based on rates
implicit in the transaction.
4. Provisions and Contingent liabilities
A provision is recognized if, as a result of a past event, the company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle obligation. Provisions are determined by the best estimate of
the outflow benefits required to settle the obligation at the reporting
date. Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
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 a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made. Provision for onerous contracts, i.e. contracts
where the expected unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be received under
it, are recognized when it is probable that an outflow of resources
embodying economic benefits will be required to settle a present
obligation as a result of an obligating event, based on a reliable
estimate of such obligation.
5. Fixed Assets and Capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation and
impairments, if any. Direct costs are capitalized until fixed assets
are ready for use. Borrowing costs directly attributable to acquisition
or construction of fixed assets, which necessarily take a substantial
period of time to get ready for their intended use, are capitalized.
Capital work-in-progress comprises outstanding advance paid to acquire
fixed assets, and the cost of fixed assets that are not yet ready for
their intended use at the reporting date.
6. Depreciation and amortization
Depreciation on assets carried at historical costs is provided on
straight line method on the basis of useful life as specified in
Schedule II to the Companies Act, 2013. The carrying amount of the
assets as on April 1, 2014 is depreciated over the remaining useful
life.
7. Retirement & Other benefits to employees
Gratuity : In accordance with the Payment of Gratuity Act, 1972, the
company provides for gratuity, a defined benefit retirement plan
covering eligible employees. The plan provides a lump-sum payment to
vested employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee's salary
and the tenure of employment with the company subject to conditions
specified in aforesaid act.
Provident Fund : Eligible employees receive benefits of provident fund,
which is a defined benefit plan. Both the employee and the Company
makes monthly contribution to the provident fund plan equal to a
specified percentage of the covered employee's salary. The rate at
which the annual interest is payable to the beneficiaries is being
administered by the government.
Compensated Absence : The employees of the Company are entitled to
compensate absences which are both accumulating and non-accumulating in
nature. The expected cost of accumulating compensated absence is
measured based on the additional amount expected to be paid as a result
of the unused entitlement that has accumulated at the Balance Sheet
date. Expenses on non-accumulating compensated absences are recognized
in the period in which the absences occur.
8. Foreign Currency Transactions
Investments in foreign entities are recorded at the exchange rate
prevailing on the date of making the investment. Transactions in
foreign currencies are recorded at the rates prevailing on the date of
transaction.
Monetary items denominated in foreign currency are restated at the rate
prevailing on the balance sheet date. Exchange difference arising on
the settlement of monetary items or on reporting company's monetary
items at rates different from those at which they were initially
recorded during the year or reported in the previous financial
statements, are recognized as income or expense in the year in which
they arise except in case of long term liabilities ,where they related
to acquisition of fixed assets ,in which case they are adjusted to the
carrying cost of such assets .
9. Taxes
Tax expense comprises of current tax, related to earlier years &
deferred tax.
Income tax is accrued in the same period that the related revenue and
expenses arise. A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances &
exemption. Provisions are recorded when it is estimated that a
liability due to disallowances or other is probable.
The difference that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing difference at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets are recognized only to the extent
there is reasonable certainty that the asset can be realized in future;
however, where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is a virtual certainty of realization of such assets.
Tax credit is recognized in respect of Minimum Alternate Tax
('MAT') as per the provisions of Section 115JAA of the Income Tax
Act, 1961 based on convincing evidence that the Company will pay normal
income tax within statutory time frame and is reviewed at each Balance
Sheet date. The MAT credit is recognized as an asset in accordance with
the recommendation provided in the Guidance Note issued by the
Institute of Chartered Accountants of India.
10. Earning 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 earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period
adjusted for the effects of all dilutive potential equity shares.
11. Investments
Investments are classified as long term based on Management's
intention at the time of purchase. Cost for overseas investment
comprises the Indian Rupee value of the consideration paid for the
investment translated at the exchange rate prevalent at the date of
investment. Long-term investments are carried at cost less provisions
recorded to recognize any decline, other than temporary, in the
carrying value of each investment.
12. Impairment of assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimated the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to recoverable amount.
The reduction is treated as an impairment loss and is recognized in the
profit & loss account. If at the balance sheet date there is an
indication that if a previously assessed impaired loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated historic
cost.
13. Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit
before tax and extra ordinary items are adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of present
or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the company
are segregated.
14. Inventories
Stores, spares / (consumable & capital) parts & other consumables are
valued at cost on First-in-first-out basis.
15. Segment Data
The company considers its principal activity of providing oil and
natural gas exploitation services to be a complete segment and all
revenues for the year ended 31st March, 2015 have been derived from
this segment.
16. Borrowing Costs
Borrowing Cost that are directly attributable to the acquisition,
construction or production of a qualifying asset, is capitalized as
part of the cost of that asset in accordance with the Accounting
Standard 16 on "Borrowing Costs". Other borrowing costs are charged
to revenue.
17. Events occurring after the Balance sheet date
Where material, events occurring after the date of the Balance Sheet
are considered upto the date of approval of accounts by the Board of
Directors.
Mar 31, 2014
1. Basis of preparation of financial statement
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as prescribed by the Companies (Accounting Standards) Rules,
2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities & Exchange Board of India.
2. Use of estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets & liabilities and disclosure relating to
contingent liabilities as at the date of financial statements and
reported amounts of income and expenses during the period.
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are
made as the Management becomes aware of change in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made, if
material, their effects are disclosed in the notes to the financial
statements.
The management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. An impairment loss for an asset
is reversed if, and only if, the reversal can be related objectively to
an event occurring after the impairment loss was recognized. The
carrying amount of an asset is increased to its revised recoverable
amount, provided that this amount does not exceeds the carrying amount
that would have been determined (net of any accumulated amortization).
3. Revenue Recognition
Revenue is primarily derived from oil & gas exploitation and other
allied services. The same is accounted for by the Company on the basis
of Gross value of work done.
Profit on sale of fixed assets / investments are recorded on transfer
of title from the company and are determined as the difference between
the sale price and carrying value of the fixed asset / investments.
Interest is recognized using the time-proportion method based on rates
implicit in the transaction.
4. Provisions and Contingent liabilities
A provision is recognized if, as a result of a past event, the company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle obligation. Provisions are determined by the best estimate of
the outflow benefits required to settle the obligation at the reporting
date. Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
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 a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Provision for onerous contracts, i.e. contracts where the expected
unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it, are recognized
when it is probable that an outflow of resources embodying economic
benefits will be required to settle a present obligation as a result of
an obligating event, based on a reliable estimate of such obligation.
5. Fixed Assets and Capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation and
impairments, if any. Direct costs are capitalized until fixed assets
are ready for use. Borrowing costs directly attributable to acquisition
or construction of fixed assets, which necessarily take a substantial
period of time to get ready for their intended use, are capitalized.
Capital work-in-progress comprises outstanding advance paid to acquire
fixed assets, and the cost of fixed assets that are not yet ready for
their intended use at the reporting date.
6. Depreciation and amortization
Depreciation on fixed assets is provided on the straight-line method at
the rate prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation for assets purchased / sold, impaired or discarded during
a period is proportionately charged. Individual low cost assets
(acquired for less than Rs. 5000/-) are depreciated fully in the year
of purchase.
7. Retirement & Other benefits to employees Gratuity :
In accordance with the Payment of Gratuity Act, 1972, the company
provides for gratuity, a defined benefit retirement plan covering
eligible employees. The plan provides a lump-sum payment to vested
employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee''s salary and
the tenure of employment with the company subject to conditions
specified in aforesaid act.
Provident Fund :
Eligible employees receive benefits of provident fund, which is a
defined benefit plan. Both the employee and the Company makes monthly
contribution to the provident fund plan equal to a specified percentage
of the covered employee''s salary. The rate at which the annual interest
is payable to the beneficiaries is being administered by the
government.
Compensated Absence :
The employees of the Company are entitled to compensate absences which
are both accumulating and non-accumulating in nature. The expected
cost of accumulating compensated absence is measured based on the
additional amount expected to be paid as a result of the unused
entitlement that has accumulated at the Balance Sheet date. Expenses
on non-accumulating compensated absences are recognized in the period
in which the absences occur.
8. Foreign Currency Transactions
Investments in foreign entities are recorded at the exchange rate
prevailing on the date of making the investment. Transactions in
foreign currencies are recorded at the rates prevailing on the date of
transaction.
Monetary items denominated in foreign currency are restated at the rate
prevailing on the balance sheet date. Exchange difference arising on
the settlement of monetary items or on reporting company''s monetary
items at rates different from those at which they were initially
recorded during the year or reported in the previous financial
statements, are recognized as income or expense in the year in which
they arise except in case of long term liabilities ,where they related
to acquisition of fixed assets ,in which case they are adjusted to the
carrying cost of such assets .
9. Taxes
Tax expense comprises of current tax, related to earlier years &
deferred tax.
Income tax is accrued in the same period that the related revenue and
expenses arise. A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances &
exemption. Provisions are recorded when it is estimated that a
liability due to disallowances or other is probable.
The difference that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing difference at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets are recognized only to the extent that
there is reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
Tax credit is recognized in respect of Minimum Alternate Tax (''MAT'') as
per the provisions of Section 115JAA of the Income Tax Act, 1961 based
on convincing evidence that the Company will pay normal income tax
within statutory time frame and is reviewed at each Balance Sheet date.
The MAT credit is recognized as an asset in accordance with the
recommendation provided in the Guidance Note issued by the Institute of
Chartered Accountants of India.
10. Earning 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 earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period
adjusted for the effects of all dilutive potential equity shares.
11. Investments
Investments are classified as long term based on Management''s intention
at the time of purchase. Cost for overseas investment comprises the
Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long-term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
12. Impairment of assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimated the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to recoverable amount.
The reduction is treated as an impairment loss and is recognized in the
profit & loss account. If at the balance sheet date there is an
indication that if a previously assessed impaired loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated historic
cost.
13. Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit
before tax and extra ordinary items are adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of present
or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the company
are segregated.
14. Inventories
Stores, spares (consumable & capital) parts & other consumables are
valued at cost on First-in-first-out basis.
15. Segment Data
The Company considers its principal activity of providing oil and
natural gas exploration services to be a complete segment and all
revenues for the year ended 31st March 2014 have been derived from this
segment.
16. Borrowing Costs
Borrowing Cost that are directly attributable to the acquisition,
construction or production of a qualifying asset, is capitalized as
part of the cost of that asset in accordance with the Accounting
Standard 16 on "Borrowing Costs". Other borrowing costs are charged to
revenue.
17. Events occurring after the Balance sheet date
Where material, events occurring after the date of the Balance Sheet
are considered upto the date of approval of accounts by the Board of
Directors.
Mar 31, 2012
1. Basis of preparation of financial statements
These financial statements have been prepared on an accrual basis and
under historical cost convention and in compliance, in all material
aspects, with the applicable accounting principles in India, the
applicable accounting standards notified under section 211 (3C)and the
other relevant provisions of the Companies Act, 1956.
All the assets and liabilities have been classified as current or non
current as per the Company's normal operating cycle and other criteria
set out in Schedule VI to the Companies Act, 1956. Based on the nature
of the products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalent, the
company has ascertained its operating cycle to be less than 12 months.
2. Use of estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets & liabilities and disclosure relating to
contingent liabilities as at the date of financial statements and
reported amounts of income and expenses during the period.
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are
made as the Management becomes aware of change in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made, if
material, their effects are disclosed in the notes to the financial
statements.
The management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. An impairment loss for an asset
is reversed if, and only if, the reversal can be related objectively to
an event occurring after the impairment loss was recognized. The
carrying amount of an asset is increased to its revised recoverable
amount, provided that this amount does not exceeds the carrying amount
that would have been determined (net of any accumulated amortization).
3. Revenue Recognition
Revenue is primarily derived from oil & gas exploitation and other
allied services. The same is accounted for by the Company on the basis
of Gross value of work done.
Profit on sale of fixed assets / investments are recorded on transfer
of title from the company and are determined as the difference between
the sale price and carrying value of the fixed asset / investments.
Interest is recognized using the time-proportion method based on rates
implicit in the transaction.
4. Provisions and Contingent liabilities
A provision is recognized if, as a result of a past event, the company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle obligation. Provisions are determined by the best estimate of
the outflow benefits required to settle the obligation at the reporting
date. Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
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 a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Provision for onerous contracts, i.e. contracts where the expected
unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it, are recognized
when it is probable that an outflow of resources embodying economic
benefits will be required to settle a present obligation as a result of
an obligating event, based on a reliable estimate of such obligation.
5. Fixed Assets and Capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation and
impairments, if any. Direct costs are capitalized until fixed assets
are ready for use. Borrowing costs directly attributable to acquisition
or construction of fixed assets, which necessarily take a substantial
period of time to get ready for their intended use, are capitalized.
Capital work-in-progress comprises outstanding advance paid to acquire
fixed assets, and the cost of fixed assets that are not yet ready for
their intended use at the reporting date.
6. Depreciation and amortization
Depreciation on fixed assets is provided on the straight-line method at
the rate prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation for assets purchased / sold, impaired or discarded during
a period is proportionately charged. Individual low cost assets
(acquired for less than Rs. 5000/- ) are depreciated fully in the year
of purchase.
7. Retirement & Other benefits to employees
Gratuity :
In accordance with the Payment of Gratuity Act, 1972, the company
provides for gratuity, a defined benefit retirement plan covering
eligible employees. The plan provides a lump-sum payment to vested
employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employees salary and
the tenure of employment with the company subject to conditions
specified in aforesaid act.
Provident Fund :
Eligible employees receive benefits of provident fund, which is a
defined benefit plan. Both the employee and the Company makes monthly
contribution to the provident fund plan equal to a specified percentage
of the covered employees salary. The rate at which the annual interest
is payable to the beneficiaries is being administered by the
government.
Compensated Absence :
The employees of the Company are entitled to compensate absences which
are both accumulating and non- accumulating in nature. The expected
cost of accumulating compensated absence is measured based on the
additional amount expected to be paid as a result of the unused
entitlement that has accumulated at the Balance Sheet date. Expenses
on non-accumulating compensated absences are recognized in the period
in which the absences occur.
8. Foreign Currency Transactions
Investments in foreign entities are recorded at the exchange rate
prevailing on the date of making the investment. Transactions in
foreign currencies are recorded at the rates prevailing on the date of
transaction.
Monetary items denominated in foreign currency are restated at the rate
prevailing on the balance sheet date. Exchange difference arising on
the settlement of monetary items or on reporting company's monetary
items at rates different from those at which they were initially
recorded during the year or reported in the previous financial
statements, are recognized as income or expense in the year in which
they arise except in case of long term liabilities ,where they related
to acquisition of fixed assets ,in which case they are adjusted to the
carrying cost of such assets .
9. Taxes
Tax expense comprises of current tax, related to earlier years &
deferred tax.
Income tax is accrued in the same period when the related revenue and
expenses arise. A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances &
exemption. Provisions are recorded when it is estimated that a
liability due to disallowances or other reason is probable.
The difference that result between the profit considered for Income
Taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing difference at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets are recognized only to the extent that
there is reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
Tax credit is recognized in respect of Minimum Alternate Tax (ÃMAT') as
per the provisions of Section 115JAA of the Income Tax Act, 1961 based
on convincing evidence that the Company will pay normal income tax
within statutory time frame and is reviewed at each Balance Sheet date.
The MAT credit is recognized as an asset in accordance with the
recommendation provided in the Guidance Note issued by the Institute of
Chartered Accountants of India.
10. Earning 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 earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period
adjusted for the effects of all dilutive potential equity shares.
11. Investments
Investments are classified as long term based on Management's intention
at the time of purchase. Cost for overseas investment comprises the
Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long-term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
12. Impairment of assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to recoverable amount.
The reduction is treated as an impairment loss and is recognized in the
profit & loss account. If at the balance sheet date there is an
indication that if a previously assessed impaired loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated historic
cost.
13. Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit
before tax and extra ordinary items are adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of present
or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the company
are segregated.
14. Inventories
Stores, spares (consumable & capital) parts & other consumables are
valued at cost on First-in-first-out basis.
15. Segment Data
The company considers its principal activity of providing oil and
natural gas exploitation services to be a complete segment and all
revenues for the year ended 31st March 2012 have been derived from this
segment.
16. Borrowing Costs
Borrowing Cost that are directly attributable to the acquisition,
construction or production of a qualifying asset, is capitalized as
part of the cost of that asset in accordance with the Accounting
Standard 16 on "Borrowing Costs". Other borrowing costs are charged to
revenue.
17. Events occurring after the Balance sheet date
Where material, events occurring after the date of the Balance Sheet
are considered upto the date of approval of accounts by the Board of
Directors.
Mar 31, 2011
1. Basis of preparation of financial statement
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as prescribed by the Companies (Accounting Standards) Rules,
2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities & Exchange Board of India.
2. Use of estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets & liabilities and disclosure relating to
contingent liabilities as at the date of financial statements and
reported amounts of income and expenses during the period.
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates
are made as the Management becomes aware of change in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made, if
material, their effects are disclosed in the notes to the financial
statements.
The management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. An impairment loss for an asset
is reversed if, and only if, the reversal can be related objectively to
an event occurring after the impairment loss was recognized. The
carrying amount of an asset is increased to its revised recoverable
amount, provided that this amount does not exceeds the carrying amount
that would have been determined (net of any accumulated amortization).
3. Revenue Recognition
Revenue is primarily derived from oil & gas exploitation and other
allied services. The same is accounted for by the Company on work done
basis.
Profit on sale of fixed assets / investments are recorded on transfer
of title from the company and are determined as the difference between
the sale price and carrying value of the fixed asset / investments.
Interest is recognized using the time-proportion method based on rates
implicit in the transaction.
4. Provisions and Contingent liabilities
A provision is recognized if, as a result of a past event, the company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle obligation. Provisions are determined by the best estimate of
the outflow benefits required to settle the obligation at the reporting
date. Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
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 a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Provision for onerous contracts, i.e. contracts where the expected
unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it, are recognized
when it is probable that an outflow of resources embodying economic
benefits will be required to settle a present obligation as a result of
an obligating event, based on a reliable estimate of such obligation.
5. Fixed Assets and Capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation and
impairments, if any. Direct costs are capitalized until fixed assets
are ready for use. Borrowing costs directly attributable to acquisition
or construction of fixed assets, which necessarily take a substantial
period of time to get ready for their intended use, are capitalized.
Capital work-in-progress comprises outstanding advance paid to acquire
fixed assets, and the cost of fixed assets that are not yet ready for
their intended use at the reporting date.
6. Depreciation and amortization
Depreciation on fixed assets is provided on the straight-line method at
the rate prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation for assets purchased / sold, impaired or discarded during
a period is proportionately charged. Individual low cost assets
(acquired for less than Rs. 5000/-) are depreciated fully in the year of
purchase.
7. Retirement & Other benefits to employees
Gratuity : In accordance with the Payment of Gratuity Act, 1972, the
company provides for gratuity, a defined benefit retirement plan
covering eligible employees. The plan provides a lump-sum payment to
vested employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee's salary and
the tenure of employment with the company subject to conditions
specified in aforesaid act.
Provident Fund : Eligible employees receive benefits of provident fund,
which is a defined benefit plan. Both the employee and the Company
makes monthly contribution to the provident fund plan equal to a
specified percentage of the covered employee's salary. The rate at
which the annual interest is payable to the beneficiaries is being
administered by the government.
Compensated Absence : The employees of the Company are entitled to
compensate absences which are both accumulating and non-accumulating in
nature. The expected cost of accumulating compensated absence is
measured based on the additional amount expected to be paid as a result
of the unused entitlement that has accumulated at the Balance Sheet
date. Expenses on non-accumulating compensated absences are recognized
in the period in which the absences occur.
8. Foreign Currency Transactions
Investments in foreign entities are recorded at the exchange rate
prevailing on the date of making the investment. Transactions in
foreign currencies are recorded at the rates prevailing on the date of
transaction.
Monetary items denominated in foreign currency are restated at the rate
prevailing on the balance sheet date. Exchange difference arising on
the settlement of monetary items or on reporting company's monetary
items at rates different from those at which they were initially
recorded during the year or reported in the previous financial
statements, are recognized as income or expense in the year in which
they arise.
9. Taxes
Tax expense comprises of current tax, related to earlier years &
deferred tax.
Income tax is accrued in the same period that the related revenue and
expenses arise. A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances &
exemption. Provisions are recorded when it is estimated that a
liability due to disallowances or other is probable.
The difference that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing difference at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets are recognized only to the extent that
there is reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
Tax credit is recognized in respect of Minimum Alternate Tax ('MAT') as
per the provisions of Section 115JAA of the Income Tax Act, 1961 based
on convincing evidence that the Company will pay normal income tax
within statutory time frame and is reviewed at each Balance Sheet date.
The MAT credit is recognized as an asset in accordance with the
recommendation provided in the Guidance Note issued by the Institute of
Chartered Accountants of India.
10. Earning 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 earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period
adjusted for the effects of all dilutive potential equity shares.
11. Investments
Investments are classified as long term based on Management's intention
at the time of purchase. Cost for overseas investment comprises the
Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long-term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
12. Impairment of assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimated the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to recoverable amount.
The reduction is treated as an impairment loss and is recognized in the
profit & loss account. If at the balance sheet date there is an
indication that if a previously assessed impaired loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated historic
cost.
13. Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit
before tax and extra ordinary items are adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of present
or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the company
are segregated.
14. Inventories
Stores, spares (consumable & capital) parts & other consumables are
valued at cost on First-in-first-out basis.
15. Segment Data
The company considers its principal activity of providing oil and
natural gas exploitation services to be a complete segment and all
revenues for the year ended 31st March 2011 have been derived from this
segment.
16. Borrowing Costs
Borrowing Cost that are directly attributable to the acquisition,
construction or production of a qualifying asset, is capitalized as
part of the cost of that asset in accordance with the Accounting
Standard 16 on "Borrowing Costs". Other borrowing costs are charged to
revenue.
17. Events occurring after the Balance sheet date
Where material, events occurring after the date of the Balance Sheet
are considered upto the date of approval of accounts by the Board of
Directors.
Mar 31, 2010
1. Basis of preparation of financial statement
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as prescribed by the Companies (Accounting Standards) Rules,
2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities & Exchange Board of India.
2. Use of estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets & liabilities and disclosure relating to
contingent liabilities as at the date of financial statements and
reported amounts of income and expenses during the period.
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates
are made as the Management becomes aware of change in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made, if
material, their effects are disclosed in the notes to the financial
statements.
The management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. An impairment loss for an asset
is reversed if, and only if, the reversal can be related objectively to
an event occurring after the impairment loss was recognized. The
carrying amount of an asset is increased to its revised recoverable
amount, provided that this amount does not exceeds the carrying amount
that would have been determined (net of any accumulated amortization).
3. Revenue Recognition
Revenue is primarily derived from oil & gas exploitation and other
allied services. The same is accounted for by the Company on work done
basis.
Profit on sale of fixed assets / investments are recorded on transfer
of title from the Company and are determined as the difference between
the sale price and carrying value of the fixed asset / investments.
Interest is recognized using the time-proportion method based on rates
implicit in the transaction.
4. Provisions and Contingent liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle obligation. Provisions are determined by the best estimate of
the outflow benefits required to settle the obligation at the reporting
date. Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also
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 a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
5. Fixed Assets and Capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation and
impairments, if any. Direct costs are capitalized until fixed assets
are ready for use. Borrowing costs directly attributable to acquisition
or construction of fixed assets, which necessarily take a substantial
period of time to get ready for their intended use, are capitalized.
Capital work-in-progress comprises outstanding advance paid to acquire
fixed assets, and the cost of fixed assets that are not yet ready for
their intended use at the reporting date.
6. Depreciation and amortization
Depreciation on fixed assets is provided on the straight-line method at
the rate prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation for assets purchased / sold, impaired or discarded during
a period is proportionately charged. Individual low cost assets
(acquired for less than Rs. 5000/- ) are depreciated fully in the year
of purchase.
7. Retirement & Other benefits to employees
Gratuity : In accordance with the Payment of Gratuity Act, 1972, the
Company provides for gratuity, a defined benefit retirement plan
covering eligible employees. The plan provides a lump-sum payment to
vested employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employees salary and
the tenure of employment with the Company subject to conditions
specified in aforesaid act.
Provident Fund : Eligible employees receive benefits of provident fund,
which is a defined benefit plan. Both the employee and the Company
makes monthly contribution to the provident fund plan equal to a
specified percentage of the covered employees salary. The rate at
which the annual interest is payable to the beneficiaries is being
administered by the government.
Compensated Absence : The employees of the Company are entitled to
compensate absences which are both accumulating and non-accumulating in
nature. The expected cost of accumulating compensated absence is
measured based on the additional amount expected to be paid as a result
of the unused entitlement that has accumulated at the Balance Sheet
date. Expenses on non-accumulating compensated absences are recognized
in the period in which the absences occur.
8. Foreign Currency Transactions
Investments in foreign entities are recorded at the exchange rate
prevailing on the date of making the investment. Transactions in
foreign currencies are recorded at the rates prevailing on the date of
transaction.
Monetary items denominated in foreign currency are restated at the rate
prevailing on the balance sheet date. Exchange difference arising on
the settlement of monetary items or on reporting companys monetary
items at rates different from those at which they were initially
recorded during the year or reported in the previous financial
statements, are recognized as income or expense in the year in which
they arise.
9. Taxes
Tax expense comprises of current tax, related to earlier years &
deferred tax.
Income tax is accrued in the same period that the related revenue and
expenses arise. A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances &
exemption. Provisions are recorded when it is estimated that a
liability due to disallowances or other is probable.
The difference that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing difference at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets are recognized only to the extent that
there is reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
Tax credit is recognized in respect of Minimum Alternate Tax (ÃMAT) as
per the provisions of Section 115 JAA of the Income Tax Act, 1961 based
on convincing evidence that the Company will pay normal income tax
within statutory time frame and is reviewed at each Balance Sheet date.
The MAT credit is recognized as an asset in accordance with the
recommendation provided in the Guidance Note issued by the Institute of
Chartered Accountants of India
10. 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 or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period
adjusted for the effects of all dilutive potential equity shares.
11. Investments
Investments are classified as long term based on Managements intention
at the time of purchase. Cost for overseas investment comprises the
Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long-term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
12. Impairment of assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimated the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to recoverable amount.
The reduction is treated as an impairment loss and is recognized in the
profit & loss account. If at the balance sheet date there is an
indication that if a previously assessed impaired loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated historic
cost.
13. Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit
before tax and extra ordinary items are adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of present
or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Company
are segregated.
14. Inventories
Stores, spares (consumable & capital) parts & other consumables are
valued at cost on First-in-first-out basis.
15. Segment Data
The Company considers its principal activity of providing oil and
natural gas exploitation services to be a complete segment and all
revenues for the year ended 31st March 2010 have been derived from this
segment.
16. Borrowing Costs
Borrowing Cost that are directly attributable to the acquisition,
construction or production of a qualifying asset, is capitalized as
part of the cost of that asset in accordance with the Accounting
Standard 16 on "Borrowing Costs". Other borrowing costs are charged to
revenue.
17. Events occurring after the Balance sheet date
Where material, events occurring after the date of the Balance Sheet
are considered upto the date of approval of accounts by the Board of
Directors.
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