| 1. CAPITAL AND OTHER COMMITMENTS
(Rs. in crore)
As at As at
Particulars
March 31, 2015 March 31, 2014
Capital commitments :
Estimated amount of contracts
remaining to be executed on capital
account and not provided 1,268.21 710.36
for (net of advances) {including
Rs. 0.11 crore (Previous year Rs. 0.11
crore) pertaining to joint
ventures (refer note 38)}
Other commitments
The shareholders of the Company, on May 06, 2014, approved the
acquisition of equity and participating preference shares of Vadinar
Power Company Limited, for an amount not exceeding Rs. 2,100 crore from
Essar Power Limited against which an advance payment of Rs. 1,400 crore
has been made. The Company is in the process of completing relevant
formalities for acquisition of these shares.
2. CONTINGENT LIABILITIES
(Rs.in crore)
As at As at
Particulars
March 31, 2015 March 31, 2014
a) Claims against the Company not
acknowledged as debts
(i) In respect of income tax 68.34 64.97
(ii) In respect of sales tax / VAT 40.74 10.40
(iii) In respect of custom duty /
excise duty / service tax 650.82 282.94
(iv) Others {including Rs.5.12
crore (Previous year Rs.6.29 crore)
pertaining to joint 249.04 320.12
ventures (refer note 38)}
Others includes certain arbitration
matters Rs.98.76 crore (Previous
year Rs.192.72
crore), Alop claim Rs.102.99 crore
(Previous year Rs.89.28 crore),
Gujarat entry tax Rs.3.51 crore
(Previous year Rs.3.51 crore),
additional compensation in land
acquisition matter Rs.0.74 crore
(Previous year Rs.0.66 crore), E & P
legal disputes / claims Rs.32.70
crore (Previous year Rs.27.44 crore),
Green cess matter Rs.10.10
crore (Previous year Rs.6.08 crore)
and Other miscellaneous claims of
Rs.0.24 crore (Previous year Rs.0.43
crore)
b) Guarantees given by the Company
on behalf of others - 63.98
Claims by parties based on management assessment and / or legal advice
that the same are frivolous and not tenable, have not been considered
as contingent liabilities as the possibility of outflow of resources
embodying economic benefits is highly remote.
Pursuant to the opinion of the Expert Advisory Committee of the ICAI
that the INR/USD currency swaps (Principal Only and Full Currency Swaps
(POS / FCS)) entered into by the Company are governed by the hedge
accounting principles laid out in Accounting Standard 30- Financial
Instruments: Recognition and Measurement (AS 30) and are not covered
under Accounting Standard 11- The Effects of Changes in Foreign
Exchange Rates (AS 11), the Company has unwound the accounting under AS
11 previously adopted in respect of extant POS / FCS at the balance
sheet date and followed hedge accounting under AS 30.
3. GDS PROCEEDS UTILISATION
As at balance sheet date, the unutilized balance of proceeds from issue
of GDS / advance towards issue of GDS amounting to Rs. 12.37 crore
(Previous year Rs. 12.25 crore) is lying in current / deposit accounts
with banks.
4. EXCEPTIONAL ITEMS
Exceptional item comprises of inventory losses of Rs. 918.00 crore,
consequent upon the month to month steep and unprecedented fluctuations
in the global prices of crude oil during the year ended March 31, 2015.
(ii) General description of the leasing arrangements:
- Leased Assets - Residential township, Transit accommodation and
supply depot.
- Future lease rental payments are determined on the basis of quarterly
/ monthly lease payments as provided in the agreements.
- At the expiry of the lease term, the Company has an option to extend
the lease on mutual terms and conditions. In case of the supply depot,
the ownership gets transferred to the Company at the end of the lease
term.
- Assets are taken on lease over a period of 10 to 20 years.
b) Operating lease:
(i) The Company's major leasing arrangements are in respect of
commercial /residential premises (including furniture and fittings)/
retail outlet facilities. The lease rentals are recognised under "Other
Expenses" or "Expenditure during construction / pre-production
activities" as applicable. These leasing arrangements are usually
renewable by mutually agreed terms and conditions.
e) i) The Company uses proved and probable reserves as the basis for
impairment assessment for both crude oil and coal bed methane gas
blocks.
ii) India CBM pool and Indian Oil & Gas pool are considered as separate
cash generating units for impairment assessment purpose.
iii) Crude oil reserves are evaluated on yearly basis by inhouse
technical team, based on available geological, geophysical and
production data.
CBM reserve certification exercise was carried out by an independent
external agency in September 2009 and September 2011. All estimates
have been prepared in accordance with the definition and guidelines set
forth in the 2007 Petroleum Resource Management System (PRMS) approved
by Society of Petroleum Engineers (SPE).
iv) No exploration cost has been written off during the year.
ii) Names of related parties, where the transactions during the year /
balances as at March 31, 2015 with a single party are 10% or more, are
disclosed under each nature of transaction / class of balances.
iii) The Company has reckoned with the carrying values of amounts due
from related parties having regard to inter alia, expected realization
based on agreement / understanding with the parties, guarantees /
letters of support and fair values of the net assets of the parties /
guarantors, on the basis of which Current / Non current classification
has been made in the financial statements and the amounts due have been
concluded to be good and recoverable.
iv) Previous year figures have been shown in brackets.
5. Figures of previous year have been regrouped / rearranged,
wherever necessary, to conform to those of the current year.
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