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.