| NOTE 1
In view of the signing of MOU with Sun Petrochemicals Limited and the
performance of the fields of the Company, the indications for
impairment exist as per AS-28 issued by the ICAI. Considering the
uncertainty of recoverability of the carrying amount of CVyiP at Baola
and Modhera field, Impairment loss amounting to ' 837,821,141/- for
both the fields have been charged to the Statement of Profit & Loss as
Exceptional Items, as assessed by the management on the basis of
certain assumptions as per AS-28 issued by the ICAI.
NOTE 2
The company has made provision for impairment loss amounting to
Rs.837,821,141/- in the financial statements due to which the company
has accumulated losses and its net worth has been fully eroded which
indicate the existence of material curtailment of the operations that
cast a substantial doubt on the Company's ability to continue as a
going concern. However company has the plan to remain in operations in
Exploration & Production of natural resources and allied activities.
Accordingly the company has entered into Memorandum of Understanding
for transferring of its rights of both the fields which will give
revenue to the company on success, Hence financial statements has been
prepared on the assumption of going concern.
NOTE 3
Lives of certain fixed assets have been revised consequent upon the
changes in useful life of assets in Schedule- II of Companies Act,
2013. Depreciation of Rs.411,405/- on account of assets, whose useful
life is already exhausted before 01.04.2014, has been adjusted against
opening Profit & Loss Account.
NOTE 4
During the year, the Company has entered into a binding Memorandum of
Understanding dated 24.03.2015 with Sun Petrochemicals Private Limited
through its exploration and Production division, Sun Oil & Natural Gas,
for transfer and assignment of the Production Sharing Contract in
respect of its participating interests over the Modhera and Baola
fields, for further development, subject to approval of Directorate
General of Hydrocarbons. An application in this regard is filed to
Directorate General of Hydrocarbons and is under consideration and
consent is awaiting.
NOTE 5
Taking into consideration the financial health of the company, the
Promoter Company has agreed for not to insist for payment till the
improvement of the financial health of the Company. Therefore the
interest on ECBs for the period from 1st October 2014 to 31st March,
2015 has been waived off and has not been provided.
NOTE 6: CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT
PROVIDED FOR)
a. Contingent liabilities amounting to Rs. 8 Lacs towards legal case
filed by Mr. Vinayakrao S. Desai against the company before the
Ahmadabad High Court has not been acknowledged by the Company as the
Company expects the verdict in its favor.
b. The Income-Tax assessments of the Company have been completed up to
the Assessment Year 2012-13 (in previous Year up to 2011-12). Demand
has been raised of Rs.37.33 Lacs (Previous Year: Rs.40.58 Lacs) up to
the said Assessment Year, against which the company has filed appeal
before Appellate authority.
NOTE 7:
The Company is engaged in extraction of crude oil and natural gas only
and therefore there is only one reportable segment in accordance with
Accounting Standard 17 on Segment Reporting.
NOTE 8:
The Company has substantial carried forward losses and unabsorbed
depreciation. Hence, there is no deferred tax liability arising at the
end of the current year. Further, in view of the absence of virtual
certainty of realization of carried forward tax losses, the Company has
not created any deferred tax asset as envisaged in Accounting
Standard-22 on Taxes of Income issued by The Institute of Chartered
Accountants Of India.
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