3.19 Provisions, contingent liabilities andcontingent assets

a) Provisions

Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past event
and it is probable that the outflow of
resources embodying economic benefits
will be required to settle the obligation and
can be reasonably estimated. The expense
relating to the provision is presented in
the statement of profit and loss net of any
reimbursement.

If the effect of the time value of money
is material, provisions are discounted
using a current pre-tax rate that reflects,
when appropriate the risks specific to the
liability. When discounting is used, the
increase in the provision due to passage
of time is recognised as a finance cost.

b) Contingent liabilities and contingent
assets

Contingent liability is a possible obligation
arising from past events and the existence
of which will be confirmed only by the
occurrence or non-occurrence of one or
more uncertain future events not wholly
within the control of the Company or a
present obligation that arises from past
events but is not recognized because it is
not possible that an outflow of resources
embodying economic benefit will be
required to settle the obligations or reliable
estimate of the amount of the obligations
cannot be made. The Company discloses
the existence of contingent liabilities
in Other Notes to financial statements.

Contingent assets are not recognised in
financial statements since this may result
in the recognition of income that may
never be realised. However, when the
realisation of income is virtually certain,
then the related asset is not a contingent
asset and is recognised. A contingent
asset is disclosed, in financial statements,
where an inflow of economic benefits is
probable.

The Company’s accounting policies and
disclosures require the measurement
of fair values, for both financial and
non-financial assets and liabilities.

Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurements date.
The fair value measurement is based on the
presumption that the transaction to sell the
asset or transfer the liability takes place either;

• In the principal market for the asset or liability,
or

• In the absence of a principal market, in the
most advantageous market for the asset or
liability.

The principal or the most advantageous market
must be accessible by the Company. The fair
value of an asset or a liability is measured using
the assumptions that market participants act
in their economic best interest. A fair value
measurement of a non-financial asset takes
into account a market participant’s ability to
generate economic benefits by using the asset
in its highest and best use or by selling it to
another market participant that would use the
assets in its highest and best use.

The company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximising the use of relevant
observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the fair
value hierarchy, described as follows, based on
the lowest level input that is significant to the
fair value measurement as whole :

Level 1 -- Quoted (unadjusted) market
prices in active market for identical
assets or liabilities.

Level 2 -- Valuation techniques for which the
lowest level input that is significant
to the fair value measurement is
directly or indirectly observable.

Level 3 -- Valuation techniques for which the
lowest level input that is significant
to the fair value measurement is
unobservable.

External valuers are involved for valuation of
significant assets and liabilities. Involvement of
external valuers is decided by the management
of the Company considering the requirements
of Ind AS and selection criteria include market
knowledge, reputation, independence and
whether professionalstandards are maintained.

For assets and liabilities that are recognised
in the balance sheet on a recurring basis,
the Company determines whether transfers
have occurred between levels in the
hierarchy by re-assessing categorisation
(based on the lowest level input that is
significant to the fair value measurement as
a whole) at the end of each reporting period.

For the purpose of fair value disclosures,
the company has determined classes
of assets and liabilities on the basis of
the nature, characteristics and risks of
the asset or liability and the level of the
fair value hierarchy as explained above.

3.21 Financial Instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity and
a financial liability or equity of another entity.

3.21.1 Financial Assets

a) Initial recognition and measurement

All financial assets are initially recognized
when the Company becomes a party to the
contractual provisions of the instruments.
A financial asset is initially measured at
fair value plus, in the case of financial
assets not recorded at fair value through
Profit or Loss, transaction costs that
are attributable to the acquisition of the
financial asset. However, trade receivables
that do not contain a significant financing
component are measured at transaction
price.

For purposes of subsequent
measurement financial assets
are classified in three categories:

• Measured at amortised cost;

• Measured at Fair value through Other
Comprehensive Income (FVTOCI); and

• Measured at Fair value through Profit or
Loss (FVTPL).

Financial assets are not reclassified
subsequent to their initial recognition,
except if and in the period the Company
changes its business model for managing
financial assets.

Measured at Amortized Cost :

A financial asset that meets the following
two conditions is measured at amortised
cost (net of any write down for impairment)
unless the asset is designated at fair value
through profit or loss under the fair value
option:

• Business model test: The objective
of the company’s business model is
to hold the financial asset to collect
the contractual cash flows (rather
than to sell the instrument prior to its
contractual maturity to realise its fair
value changes).

• Cash flow characteristics test: the
contractual terms of the financial
asset gives rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortized cost using the effective interest
rate (EIR) method.

Measured at FVTOCI :

A financial asset that meets
the following two conditions is
measured at fair value through other
comprehensive income unless the asset

is designated at fair value through
profit or loss under the fair value option.

• Business model test: The financial asset
is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling
financial assets.

• Cash flow characteristics Test: The
contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

Financial assets meeting these criteria
are measured initially at fair value plus
transaction costs. They are subsequently
measured at fair value with any gains
or losses arising on remeasurement
recognized in other comprehensive
income, except for impairment gains
or losses and foreign exchange gains
/ losses or interest income, which are
recognized in statement of profit and loss.
On derecognition of the asset, cumulative
gain or loss previously recognized in OCI
is reclassified from the equity to profit and
loss.

Measured at FVTPL :

Even if an instrument meets the two
requirements to be measured at
amortised cost or fair value through other
comprehensive income, a financial asset
is measured at fair value through profit or
loss if doing so eliminates or significantly
reduces a measurement or recognition
inconsistency (sometimes referred to as
an accounting mismatch’) that would
otherwise arise from measuring assets
or liabilities or recognising the gains
and losses on them on different basis.

All other financial assets are measured at
fair value through profit or loss.

De-recognition

The Company de-recognizes a financial
asset on trade date only when the
contractual rights to the cash flows from
the asset expire, or when it transfers the

financial asset and substantially all the
risks and rewards of ownership of the
assets to another entity.

Impairment of financial assets

The Company assesses at each date of
balance sheet whether a financial asset
or a group of financial assets is impaired.
Ind AS - 109 requires expected credit
losses to be measured through a loss
allowance. The company recognizes
lifetime expected losses for all contract
assets and/or all trade receivables that
do not constitute a financing transaction.
For all other financial assets, expected
credit losses are measured at an amount
equal to the 12 month expected credit
losses or at an amount equal to the life
time expected credit losses if the credit
risk on the financial asset has increased
significantly since initial recognition.

3.21.2 Financial Liabilities

a) Initial recognition and measurement

All financial liabilities are recognised
initially at fair value and, in the case of
loans and borrowings and payables, net
of directly attributable transaction costs.

The Company’s financial liabilities include
lease liabilities, trade and other payables.

b) Subsequent measurement

Financial liabilities are measured
subsequently at amortized cost or Fair
Value through Profit and Loss (FVTPL).
A financial liability is classified as FVTPL
if it is classified as held for-trading, or it
is a derivative or it is designated as such
on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net
gains and losses, including any interest
expense, are recognized in profit or loss.
Other financial liabilities are subsequently
measured at amortized cost using the
effective interest rate method. Interest
expense and foreign exchange gains and
losses are recognized in profit or loss.
Any gain or loss on derecognition is also
recognized in profit or loss.

c) Derecognition

A financial liability is derecognised
when the obligation under the liability is
discharged or cancelled or expires.

d) Offsetting of financial instruments

Financial assets and financial liabilities
are offset and the net amount is
reported in the balance sheet, if there
is a currently enforceable legal right to
offset the recognised amounts and there
is an intention to settle on a net basis, to
realise the assets and settle the liabilities
simultaneously. The legally enforceable
right must not be contingent on future
events and must be enforceable in the
normal course of business and in the
event of default, insolvency or bankruptcy
of the counterparty.

3.22 Prior Period Items

All incomes and expenditures in aggregate
pertaining to prior year(s) above the threshold
limit of ^ 150 Lakhs are corrected and
accounted retrospectively.

3.23 Site Restoration

At expiry of the Lease period, the Company’s
Management expects to handover the Oil Wells
at different locations in working condition to
Government of India, assuming the leases are
not extended in favour of the Company.

In view of the above, Management believes
that the Company would not be required to
abandon these fields with any corresponding
abandonment costs. However, as per the
decisions taken at Management Committee
Meeting (MCM) with Directorate General of
Hydrocarbons (DGH), the Company creates
earmarked funds, each year, in the form of
Bank Deposits, towards Site Restoration
Fund. The said deposits are shown as under
the Other Bank balances as “Under Lien to
Government of India / State Government - For
Site Restoration Fund Account” and accounted
for to that extent in the books.

Management believes that this treatment
provides a more prudent and faithful view of
Financial Statements and reflects the economic
substance of the transactions, other events
and conditions, and not merely the legal form.

3.24 Cash Flow Statement

The cash flow statement is prepared by
indirect method set out in Ind AS 7 on cash flow
statements and presents the cash flows by
operating, investing & financing activities of the
company. Cash & cash equivalent presented in
the cash flow statement consist of items as
mentioned in accounting policy 3.6 above on
Cash and Cash Equivalents. However, for the
purpose of the Cash Flow Statement the same
is net of outstanding bank overdrafts (if any).

3.25 Borrowing Cost

Borrowing costs directly attributable to the
acquisition, construction or production of an
asset that necessarily takes a substantial
period of time to get ready for its intended
use or sale are capitalized as part of the cost
of the asset. All other borrowing costs are
expensed in the period in which they occur.

Borrowing costs consist of interest and other
costs that an entity incurs in connection with
the borrowing of funds. Borrowing costs also
includes exchange difference to the extent
regarded as an adjustment to the borrowing
costs.

3.26 Business combination

At the acquisition date, the identifiable assets
acquired and the liabilities assumed are
recognized at their fair value that meet the
condition for recognition, except that:

Deferred tax assets or liabilities, and assets
or liabilities related to employee benefit
arrangements are recognized and measured in
accordance with Ind AS 12 ‘Income Taxes’ and
Ind AS 19 ‘Employee Benefits’, respectively.

Business Combination under Common control

A business combination involving entities
or businesses under common control is
a business combination in which all the
combining entities or businesses are ultimately

controlled by the same party or parties both
before and after the business combination
and the control is not transitory. Business
combinations involving entities or businesses
under common control are accounted for using
the pooling of interest method as follows:

• The assets and liabilities of the combining
entities are reflected at the carrying amounts.

• No adjustments are made to reflect fair
values, or recognize new assets or liabilities.
Adjustments are made to harmonize
significant accounting policies.

• The financial information in the financial
statements in respect of prior periods is
restated as if the business combination
has occurred from the beginning of the
preceding period in the financial statements,
irrespective of the actual date of the
combination.

The balance of the retained earnings appearing
in the financial statements of the transferor is
aggregated with the corresponding balance
appearing in the financial statements of the
transferee. The identity of the reserves are
preserved and the reserves of the transferor
become the reserves of the transferee.

3.27 Recent accounting pronouncements

The Ministry of Corporate Affairs (“MCA”) has
notified certain amendments to existing Indian
Accounting Standards and a new standard
under the Companies (Indian Accounting
Standards) Rules, 2015, as amended from time
to time.

a) Amendments effective from April 01,
2025

The Ministry of Corporate Affairs
(MCA) has notified the Companies
(Indian Accounting Standards) Second
Amendment Rules, 2025 on the following
effective from April 01, 2025:

(i) Lack of exchangeability -
amendments to Ind AS 21

(ii) Classification of liabilities as
current or non-current and non¬
current liabilities with covenants -
amendments to Ind AS 1

(iii) Supplier Finance Arrangements -
Amendments to Ind AS 7 and Ind AS
107

(iv) International Tax Reform - Pillar Two
Model Rules - Amendments to Ind AS
12

The Compay has reviewed the new
pronouncements and the same were not
applicable or material to the Company.

b) New standard issued but not yet effective

MCA has issued Ind AS 118 - Presentation
and Disclosure in Financial Statements,
which will replace Ind AS 1 - Presentation
of Financial Statements and is effective for
annual reporting periods beginning on or
after April 01, 2027. Ind AS 118 introduces
revised presentation requirements in the
statement of profit and loss and enhanced
disclosure requirements. The standard
is expected to impact presentation and
disclosures but not the recognition and
measurement. The Company is currently
evaluating the impact of this standard on
the accompanying financial statements.

All other new standards or amendments
that are not yet effective that have been
issued by the MCA are not applicable or
material to the Company.

4 Significant accounting judgements and
key sources of estimates in applying the
accounting policies

Information about Significant judgements and
Key sources of estimation made in applying
accounting policies that have the most
significant effects on the amounts recognized
in the financial statements are included in the
following notes:

4.1 Defined benefit plan and obligations

The cost of the defined benefit plan and other
post-employment benefits and the present
value of such obligation are determined during
actuarial valuation. An actuarial valuation
involves making various assumptions that
may differ from actual developments in the
future. These include the determination of the
discount rate, future salary increases, mortality
rates and attrition rate. Due to the complexities
involved in the valuation and its long term
nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting
date.

4.2 Fair value measurement of financial
instrument

When the fair value of financial assets and
financial liabilities recorded in the balance
sheet cannot be measured based on quoted
prices in a active market then their fair value is
measured using valuation techniques including
the Discounted Cash Flow (DCF) model. The
inputs to this model are taken from observable
markets where possible but where this is not
feasible a degree of judgement is required in
establishing the fair value. Judgements include
consideration of input such as liquidity risk
credit risk and volatility. Changes in assumption
about this factor could affect the reported fair
value of financial instruments.

4.3 Impairment of financial assets

The impairment provision for financial asset
is based on assumption about risk of default
and expected loss rates. The company
uses judgement in making the assumptions
and selecting the inputs to the impairment
calculation based on company’s past history,
the existing market condition as well as
forward looking estimates at the end of each
reporting period.

4.4 Evaluation of indicators for impairment
of Oil and Gas Assets

The evaluation of applicability of indicators
of impairment of Oil and Gas Assets requires
assessment of external factors such as

significant decline in value in use, significant
changes in the technological, market, economic
or legal environment, market interest rates etc.
and internal factors such as obsolescence or
physical damage of an asset, poor economic
performance of the asset etc. which could
result in significant change in recoverable
amount of the Oil and Gas Assets.

4.5 Evaluation of Reserves

Management estimates production profile
(proved and probable reserves) in relation
to all the Oil & Gas Fields determined by
the Geological & Geophysical team as
per industry practice. The estimates so
determined are used for the computation
of depletion and impairment testing of
Development of Hydrocarbon Properties.

The year-end reserves of the Company
have been estimated by the Geological &
Geophysical team which follows the guidelines
for application of the petroleum resource
management system consistently. The
Company has adopted the reserves estimation
by following the guidelines of Society of
Petroleum Engineers (SPE) which defines
“Reserves are those quantities of petroleum
anticipated to be commercially recoverable
by application of development projects to
known accumulations from a given date
forward under defined conditions. Reserves
must further satisfy four criteria: They must
be discovered, recoverable, commercial and
remaining (as of a given date) based on
development project(s) applied”. Volumetric
estimation is made which uses reservoir rock
and fluid properties to calculate hydrocarbons
in-place and then estimate the recoverable
reserves from it. As the field gets matured
with production history the material balance,
simulation, decline curve analysis are applied
to get more accurate assessments of reserves.
The annual revision of estimates is based
on the yearly exploratory and development
activities and results thereof. In addition, new
in- place volume and ultimate recoverable
reserves are estimated for any new discoveries
or new pool of discoveries in the existing fields
and the appraisal activities may lead to revision
in estimates due to new sub-surface data.
Similarly, reinterpretation is also carried out
based on the production data by updating the
static and dynamic models leading to change

in reserves. New interventional technologies,
change in classifications and contractual
provisions may also necessitate revision in the
estimation of reserves.

4.6 Leases

Ind AS 116 requires lessees to determine the
lease term as the non-cancellable period of a
lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes an
assessment on the expected lease term on a
lease-by-lease basis and thereby assesses
whether it is reasonably certain that any
options to extend or terminate the contract
will be exercised. In assessing whether the
Company is reasonably certain to exercise an
option to extend a lease, or not to exercise
an option to terminate a lease, it considers all
relevant facts and circumstances that create
an economic incentive for the Company to
exercise the option to extend the lease, or not
to exercise the option to terminate the lease.
The lease term in future periods is reassessed
to ensure that the lease term reflects the
current economic circumstances.

4.7 Allowances for Doubtful Debts

The Company makes allowances for doubtful
debts through appropriate estimations of
irrecoverable amount. The identification of
doubtful debts requires use of judgment and
estimates. Where the expectation is different
from the original estimate, such difference will
impact the carrying value of the trade and
other receivables and doubtful debts expenses
in the period in which such estimate has been
changed.

4.8 Provisions and Contingencies

The assessments undertaken in recognising
provisions and contingencies have been made in
accordance with Indian Accounting Standards
(Ind AS) 37, ‘Provisions, Contingent Liabilities
and Contingent Assets’. The evaluation of the
likelihood of the contingent events is applied to
the best judgement of management regarding
the probability of exposure to potential loss.

Sub-notes

(iv) The Company has been generally amortising/ depreciating its “Oil and Gas Assets” under the head of
“Property, Plant and Equipment” and “Intangible Assets” based on the remaining period of the Production
Sharing Contract (PSC) / Revenue Share Contract (RSC) of respective Oil and Gas Fields after taking
into consideration the extension granted by the Government of India (GoI). During the current year, new
“Oil Fields (Regulation and Amendment) Act, 2025” has been enacted following which new “Petroleum
and Natural Gas Rules, 2025” have been notified in December, 2025. Accordingly, Management has
reassessed the useful life of “Oil and Gas Assets” in light of the amended Act and Rules, which allow
extension of a PSC more favourably to the Contractors for longer period with certain conditions as well
as on consideration of the Company’s continued capital expenditure across the fields, while complying
with all conditions as specified under the Government Policy regarding the extension of the contract.

Based on the extension provisions under the said Act and Rules and the Company’s ongoing investment
and operational plans, and also based on reserve studies corroborated by Independent Expert, the
management has concluded that the oil and gas assets of these fields would generate economic benefits
over a longer period than previously considered. Accordingly, for the PSCs relating to Bakrol, Lohar and
Cambay fields, a further extension of 10 years (estimated on a conservative basis) is considered for the
amortisation of Oil and Gas Assets, as a change in accounting estimate and accounted for from 1st
October, 2025 in accordance with the provisions of the relevant Indian Accounting Standards (Ind AS).

As a result of change in above estimates, the amortisation charge is lower by ^ 1,776.00 Lakhs for the year
ended 31st March, 2026.

(viii) There is no intangible assets under development as on 31st March, 2026 and 31st March, 2025, whose
completion is overdue or has exceeded its cost compared to its original plan.

(ix) Capital work in progress includes ^ 4,436.55 Lakhs (Previous Year : ^ 1,682.31 Lakhs) spent by the Company
in relation to develoment of field at Duarmara (Assam) on behalf of the Oilmax Energy Private Limited (refer
note no. 36).

11.1 : No trade receivables are due from the directors or officers of the Company either severally or jointly with
any other person. No trade receivables are due from firms or private companies respectively in which any director
is a partner, a director or member.

11.2 : The Company is exposed to credit risk from its operating activities, primarily trade receivables which the
Company minimizes by dealing with high credit rating counterparties. Outstanding customer receivables are
regularly monitored on individual basis and are reconciled at regular intervals. Impairment analysis of trade
receivables is done at each reporting date on an individual basis. The expected loss recognised at the end of the
year is Nil (Previous Year: Nil).

16.4 : Terms/ Rights attached to Equity Shares

The Company has issued only one class of equity shares having par value of ^ 10 per share. Each holder of
equity shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case
of interim dividend. The Company declares and pays dividend in Indian rupees. 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, in proportion to their shareholdings.

16.8 : For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company, refer
Note No. 43-IV. Further, no ordinary shares have been reserved for issue under contracts/ commitments for the
sale of shares/ disinvestment as at the balance sheet date.

16.9 : Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares
bought back during the five years preceding immediately before the reporting period :

16.10 : No securities convertible into Equity/ Preference shares have been issued by the Company during the
current year as well as in previous year.

16.11 : No calls are unpaid by any Director or Officer of the Company during the current year as well as in previous
year.

b) On 14th February, 2024, the Company had entered into a Farm-in-Farm-Out Agreement (FIFO) with the Oilex
NL Holdings (India) Limited and Synergia Energy Limited for acquisition of 50% Participating Interest (PI) and
operatorship of the Cambay Field. The Government of India has approved the request to transfer 50% PI in the
Cambay Field PSC to the Company on 19th July, 2024. As per the terms of the said agreement, the Company has
capitalised ^ 3,047.69 Lakhs under ‘Intangible Assets- Oil and Gas Assets’, paid / payable as consideration to
acquire the 50% PI in the Cambay Field PSC upto the 31st March, 2026. Additionally, as part of the consideration
for the 50% participating interest, the Company assumed responsibility for Farmor’s share of expenditure, up to a
maximum of USD 10 millions, pursuant to the carry clause of the agreement, with no interest charged, which is and
shall be suitably dealt with in the books of accounts, as and when incurred. Upto 31st March 2026, the Company
has paid ^ 2,666.58 Lakhs against the carry clause and included in the ‘Intangible Assets- Oil and Gas Assets’.

Further, the Company had executed a heads of terms with Synergia energy Limited to acquire the remaining
50% participating interest in Cambay Field on 4 July 2025 which granted a six month exclusivity period to the
Company i.e. till 8 February 2026. The Company had made an initial payment of ^ 472.54 Lakhs (equivalent
of USD 0.5 million) for this exclusivity. The execution of Share Purchase Agreement (SPA) was subject to each
party fulfilling certain actions on the signing date. The SPA remains unexecuted as on 31st March, 2026.
Consequently, the exclusivity fee in connection with the proposed transaction is charged to the Statement of
Profit and Loss.

c) On 5th January, 2021, the Antelopus Energy Private Limited (a company merged with the Company as referred
in Note No. 52 below) had entered into a Farm-Out Agreement (FOA) with the Oilmax Energy Private Limited
(transferor) for acquisition of 50% Participating Interest (PI) and operatorship of the Duarmara Field. The
Government of India had approved the request to transfer 50% PI in the Duarmara Field to the Antelopus
Energy Private Limited on 30th March, 2021. As stipulated in the FOA, for transfer of 50% participating
interest, the Company assumed responsibility for transferor’s share of Capital expenditure, up to a maximum
of USD 10 millions and the same is recoverable from transferor’s share in net revenue on commencement of
commercial sales from the said block. Upto 31st March, 2026 the Company has incurred ^ 9,528.35 Lakhs
(including transferor share of ^ 4,436.55 Lakhs) and capitalised under ‘Capital Work in Progress’.

b) In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas,
Government of India (GOI) with respect to the Lohar Oilfield, Inter alia, the issue is whether Profit Petroleum
is payable to the GOI in a financial year, when the investment multiple in the preceding year is less than
3.5. The Company received an Award in its favour in May 2010, from the Arbitral Tribunal, against which
the GOI had appealed to the Hon’ble Delhi High Court. The Single Bench of the Hon’ble High Court ruled in
favour of the GOI. The Company had paid the Profit Petroleum as per the order of the Delhi High Court (till
extension of the field contract i.e. 13th March, 2020) although it has appealed against this to the Division
Bench of the Hon’ble Delhi High Court and the same is sub judice.

c) In January 2022, The Company had received a query from Directorate General of Hydrocarbons (DGH) on
calculation and deposit of Profit Petroleum for Lohar field for the first and second quarters of FY 2021-22.
The Company had received a demand letter dated 12th October 2022, from DGH, on payment of difference
of short payment of Lohar Profit Petroleum post extension of Production Sharing Contract (PSC) in March
2020, along with interest. The same was refuted by the Company, and duly responded with reference
to the applicable profit petroleum provisions under the PSC Addendum signed between MoPNG and the
Company, on extension of lease for Lohar field beyond March 2020. The said matter is sub - judice.

In respect of the matters in Note No. 40-B, future cash outflows are determinable only on receipt of judgements/
decisions pending at various forums/ authorities. Furthermore, there is no possibility of any reimbursements to
be made to the Company from any third party.

Note 38 :Disclosures as required for loans given, investments made and guarantee given covered u/s 186(4)
of the Companies Act, 2013 and pursuant to SEBI (Listing Obligation and Disclosure Requirements)
Regulations 2015 :

During the year, Company has not given any loan, security or provided any guarantee and for investments made
refer Note No. 10 of the financial statements.

Note 39 : Disclosures as required by Ind AS 108, Operating Segments

The Company operates in a single segment of production of Oil and Natural Gas in one geographic segment in
India. Therefore, Ind AS-108 is not applicable to the Company.

B) Transactions with the above in the ordinary course of business
i) Holding Company

The Company has not entered into any transactions with the Holding Company during the current year or the
previous year except in current year, the Company has issued 1,99,59,703 nos. of equity shares as per the
terms of Scheme of Arrangement (refer Note No.52(c)).

II Defined Benefit Plans
Gratuity

(a) The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity
plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination
of employment, of an amount equivalent to 15 days salary for each completed year of service without any
limit. Vesting occurs upon completion of five continuous years of service in accordance with Indian Law. The
Company has taken a policy with Life Insurance Corporation of India approved by IRDA for meeting the
accruing liability on account of gratuity. The present value of defined obligation and related current cost are
measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet
date. Further refer note no. 43(II)(m) below.

Sensitivities due to mortality and withdrawals are insignificant and hence ignored.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it
does provide an approximation of the sensitivity of the assumptions shown.

(j) Average Duration and Expected Benefit Payments:

At 31st March, 2026 the weighted average duration of the defined benefit obligation is 24.82 years (previous
year 24.22 years). The distribution of the timing of benefits payment i.e. the maturity analysis of the benefit
payments is as follows:

(k) Expected contribution to the defined benefit plan for the next annual reporting period

The Company expects to contribute ^ 93.41 Lakhs (previous year ^ 51.83 Lakhs) to its gratuity fund in 2026¬
27.

(l) Description of Risk Exposures

Valuation are based on certain assumptions, which are dynamic in nature and vary over time. As such

Company is exposed to various risk as follows:-

(a) Salary Increases - Actual Salary increase will increase the plan’s liability. Increase in salary, increase in
rate assumption in future valuation will also increase the liability.

(b) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets
lower than the discount rate assumed at the last valuation date can impact the liability

(c) Discount Rate - Reduction in discount rate in subsequent valuation can increase the plan’s liability.

(d) Mortality and Disability - Actual death and disability cases proving lower or higher than assumed in the
valuation can impact the liabilities.

(e) Withdrawal - Actual withdrawal proving higher or lower than assumed withdrawal and change of
withdrawal rates at subsequent valuations can impact plan’s liability.

(m) New Labour Codes

The Government of India has announced the implementation of the four Labour Codes - the Code on Wages,
2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety,
Health and Working Conditions Code, 2020 (collectively referred to as the New Labour Codes) with effect
from November 21, 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs
to enable assessment of the financial impact due to changes in regulations. The Company has considered
restructured compensation of its employees in compliance with the New Labour Codes with effect from April
1, 2026, and assessed the impact of the changes, consistent with the Labour Codes, draft rules and FAQs
and accounted for the incremental liability on account of gratuity in the Statement of Profit and Loss. The
Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government
on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such
developments as needed.

III Employee Share Based Payment Plan

The Company implemented Selan Exploration Technology Limited Employee Stock Option Scheme 2022
(“Scheme”). The Scheme was approved by the shareholders through Postal Ballot on 2nd March, 2023. The
Scheme enables grant of stock options to the eligible employees of the Company not exceeding 2,31,472 Shares,
which is 1.52% of the paid up equity share capital of the Company as on 23rd December, 2022. Further, the stock
options to any single eligible employee under the Plan during any one year shall not be equal to or exceed 1% of
the issued equity share capital of the Company, except separate approval of the shareholders of the Company.

The options granted under the Scheme have a vesting period of 3 years. The options granted are
based on the performance of the employees during the year of the grant and their continuing to remain
in service over the next 3 years. The process for determining the eligibility of employees for the grant of
stock options under the Scheme shall be determined by the Nomination and Remuneration Committee
(Administrator of the Scheme) based on employee’s grade, performance rating and such other criteria
as may be considered appropriate. The employees shall be entitled to receive one equity share of the
Company on exercise of each stock option, subject to performance of the employees, and continuation of
employment over the vesting period. The exercise price for stock options granted are ^ 10/- per option.

During the year, the Company has obtained necessary approvals from the Nomination and Remuneration
Committee for further grant of employee stock options under the Scheme. The grants of 7,300 options and
10,000 options were approved on 30 June, 2025 and 25 July, 2025 respectively in accordance with the terms
of the Employee Stock Option Scheme, 2022.

Note 45 : Disclosures as per Ind AS 116 ‘Leases’ are as follows:

The Company’s significant leasing arrangements are in respect of leases for land, building, office premises etc.

These leasing arrangements which are cancellable ranging between 11 months and 9 years generally, or longer,

and are usually renewable by mutual consent on mutually agreed terms.

The Company has used the following practical expedients for lease accounting:

1. Applying a single discount rate to a portfolio of leases of similar assets in similar economic environment with a
similar remaining lease term.

2. Applied the exemption not to recognized right of use assets and liabilities for leases with less than 12 months
of lease term and low value leases.

3. Used hindsight in determining the lease term whether the contract contained options to extend or terminate
the lease.

(e) The weighted average incremental borrowing rate applied to lease liabilities is 10.00%.

(f) The Company does not face a significant liquidity risk with regards to its lease liabilities as the current assets
are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Note 46 : Fair value measurement

The fair value of the financial assets and liabilities are included at the amount at which the instrument could
be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date
under the current market condition regardless of whether that price is directly observable or estimated using other
valuation techniques.

The following methods and assumptions were used to estimate the fair values:

(i) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other
current liabilities, short-term loans from banks and other financial institutions approximate their carrying
amounts largely due to the short term maturities of these instruments.

(ii) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters
such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances
are taken into account for the expected losses of these receivables.

(c) During the year ended 31st March, 2026 and 31st March, 2025, there were no transfers between Level 1 and
Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Note 47 : Financial Risk Management

The Company’s principal financial liabilities comprise lease liabilities, trade and other payables. The main purpose
of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include
Investments, trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company’s activities expose it to market risk, credit risk and liquidity risk. The Company’s financial risk
management is an integral part of how to plan and execute its business strategies. The Company’s financial
risk management policy is set by the Managing Board. The Board of Directors reviews and finalises policies for
managing each of these risks, which are summarised below :

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk and
commodity price risk. Financial instrument affected by market risk include investments and deposits, foreign
currency receivables, payables, loans and borrowings.

(i) 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. In order to optimize the Company’s position with regard to
interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive
corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial
instruments in its total portfolio. The Company is also exposed to interest rate risk on surplus funds parked
in fixed deposits and investments viz. mutual funds. To manage such risks, such investments are done
mainly for short durations, in line with the expected business requirements for such funds.

Interest rate sensitivity

The Company has not availed any borrowings (floating or fixed interest) and also not having substantial
long term fixed deposits and other investments, hence is not exposed to interest rate risk.

(ii) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The entity has limited foreign currency exposure which are mainly
on account of purchases and imports. The Company’s exposure to foreign currency risk at the end of the
reporting period are as follows:

The above does not include the amount payable to creditors for capital goods/services in India denominated
in USD 14,42,729 eqivalent to ^ 1,318.41 Lakhs as at 31st March, 2026 (Previous Year : Nil). Since this
liability is required to be settled in Indian Rupees (INR) based on the prevailing exchange rate on the date
of payment, the same is not considered hedgeable.

Foreign currency sensitivity

Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency
upon conversion into functional currency, due to exchange rate fluctuations between the previous reporting
period and the current reporting period.

(iii) Commodity price risk

The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any
oil price hedge. The impact of a falling oil price is however partly mitigated via the production sharing
formula in the PSCs, whereby the Company’s share of gross production increases in a falling oil price
environment due to the cost recovery mechanism. Gas prices are fixed for a certain duration of time and
the same are linked to policy guidelines issued by the Government.

(b) Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables and advances to suppliers) and from its financing activities, including deposits and other
financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy,
procedures and control relating to individual group of customers. Outstanding customer receivables are
regularly monitored. An impairment analysis is performed at each reporting date on an individual basis
for major clients.

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company in accordance
with the Company’s policy. Investments of surplus funds are made only with the institutions having good
credit ratings. Credit worthiness of all theses institutions are reviewed by the Management on a regular
basis. All balances with banks and financial institutions is subject to low credit risk due to the good credit
ratings assigned to these entities.

(c) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to
shortage of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities
of financial assets and liabilities.

In the management of liquidity risk, the Company monitors and maintains a level of cash and bank balances
deemed adequate by the management to finance the Company’s operations and mitigate the effects of
fluctuations in cash flow.

The table below summarises the maturity profile of the Company’s financial liabilities at the end of the reporting
period based on contractual undiscounted repayment obligations :

Note 48 : Capital Management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or
achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to
shareholders, issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings.

(i) As a policy, the Company annually assesses the impairment of property plant and equipment (PPE) including oil
and gas assets, intangible assets including oil and gas assets and other non-current assets by comparing the
carrying value of PPE, intangible assets and other non-current assets with its fair value. In case the fair value
is less than the carrying value an impairment charge is created. Management has concluded that there is no
impairment of PPE including oil and gas assets, Intangible Assets including oil and gas assets and other assets
during the current year and in previous year except in current year Company has written off the exclusivity fee
paid for acquisition of remaining 50% PI in the Cambay Block [refer note no. 36A(b)].

(ii) Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the
management, the value of Trade Receivables and Advances on realisation in the ordinary course of business,
will not be less than the value at which these are stated in the Balance Sheet.

Note 50 : Oil and Gas Reserves

Proved & Probable Reserves for the working interest of the Company is estimated by management in line with the

development plan approved by the Directorate General of Hydrocarbons. Reserves are as follows:

The Board of Directors of the Company in their meeting held on 22nd November, 2023 had approved a
Composite Scheme of Arrangement between Antelopus Energy Private Limited (“Antelopus” or “Transferor
company”), the Company and their respective shareholders and creditors, in compliance with sections 230 to
232 read with section 66 and section 52 and other applicable provisions of the Companies Act, 2013 and rules
made thereunder (“Scheme”). The Scheme, inter alia, provides for: (a) reduction of the capital of the Transferor
company ; and (b) amalgamation of the Transferor company with and into the Company. The Company will
issue (a) 4,287 equity shares of the Company of face value of ^ 10/- each for every 10,000 equity shares of
Antelopus Energy Private Limited; (b) 4,287 equity shares of the Company of face value of ^ 10/- each for every
10,000 Class A1 equity shares of Antelopus Energy Private Limited; and (c) 18 equity shares of the Company
of face value of ^ 10/- each for every 10,000 Non-Convertible 0.001% Redeemable Preference Shares of the
Transferor company to the Shareholders of Transferor company as on the record date defined in the Scheme.

The National Company Law Tribunal, Chandigarh Bench (“NCLT”) by their order dated 10th June 2025 (rectified
order dated 1st July, 2025) approved the said Scheme. The Appointed date of the Scheme is 1st April, 2023. The said
Scheme has been made effective from 5th July, 2025. Consequently, the transferor company stands dissolved without
winding up. Since the amalgamated entity is under common control, the accounting of the said Scheme has been done
by applying the Pooling of Interest method as prescribed in “Appendix - C” of Ind AS103 “Business Combinations”.
While applying Pooling of Interest method, the Company has recorded all assets, liabilities and reserves attributable
to the Transferor company at their carrying values as appearing in the financial statements of the Transferor
company on appointed date. Consequently, financial statements have been restated for the year ended 31st March
2025 to give effect to the amalgamation along with also restating the opening balances of retained earnings and
other reserves as at 1st April 2023 approving the said merger as required under “Appendix - C” of Ind AS 103.

Below is the summary of identified assets and liabilities acquired and restatement of previous year figures:

a) The assets, liabilities and reserves of transferor company have been incorporated in the financial statements
at the carrying values as appearing in the financial statements of the transferor company.

b) Inter-Company balances and transactions have been eliminated and resultant adjustment of ^ 627.09 Lakhs
has been adjusted in retained earnings.

c) The Company has allotted 1,99,62,358 equity shares having face value of ^ 10/- each to the shareholders of
the Transferor company as on the Record Date i.e., 5th July, 2025, in terms of of the Scheme. As on 31st March,
2025 the same has been shown under “Share Capital Suspense Account” related to shares pending to be
issued.

53.2 : Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per section 2(87) of the Companies
Act, 2013

3.19. Provisions, contingent liabilities and contingent
assets

a) Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive) as
a result of a past event and it is probable that the
outflow of resources embodying economic benefits
will be required to settle the obligation and can be
reasonably estimated. The expense relating to the
provision is presented in the statement of profit and
loss net of any reimbursement
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate the risks specific
to the liability. When discounting is used, the increase
in the provision due to passage of time is recognised
as a finance cost.

b) Contingent liabilities and contingent assets

Contingent liability is a possible obligation arising
from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the Company or a present
obligation that arises from past events but is not
recognized because it is not possible that an outflow
of resources embodying economic benefit will be
required to settle the obligations or reliable estimate
of the amount of the obligations cannot be made.
The Company discloses the existence of contingent
liabilities in Other Notes to financial statements.

Contingent assets are not recognised in financial
statements since this may result in the recognition
of income that may never be realised. However,
when the realisation of income is virtually certain,
then the related asset is not a contingent asset and
is recognised. A contingent asset is disclosed, in
financial statements, where an inflow of economic
benefits is probable.

3.20. Fair value measurement

The Company''s accounting policies and disclosures
require the measurement of fair values, for both financial
and non-financial assets and liabilities
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurements date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the
liability takes place either;

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset
or a liability is measured using the assumptions that
market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes
into account a market participant''s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the assets in its highest and best use.
The company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as whole :

Level 1. Quoted (unadjusted) market prices in active
market for identical assets or liabilities.

Level 2. Valuation techniques for which the lowest
level input that is significant to the fair
value measurement is directly or indirectly
observable.

Level 3. Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable.

External valuers are involved for valuation of significant
assets and liabilities. Involvement of external valuers is
decided by the management of the Company considering
the requirements of Ind AS and selection criteria include
market knowledge, reputation, independence and
whether professional standards are maintained.

For assets and liabilities that are recognised in the
balance sheet on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

3.21. Financial Instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity of another entity.

3.21.1.Financial Assets

a. Initial recognition and measurement

All financial assets are initially recognized when
the Company becomes a party to the contractual
provisions of the instruments. A financial asset is
initially measured at fair value plus, in the case of
financial assets not recorded at fair value through
Profit or Loss, transaction costs that are attributable
to the acquisition of the financial asset. However,
trade receivables that do not contain a significant
financing component are measured at transaction
price.

b. Subsequent measurement

For purposes of subsequent measurement financial
assets are classified in three categories:

• Measured at amortised cost;

• Measured at Fair value through Other
Comprehensive Income (FVTOCI); and

• Measured at Fair value through Profit or Loss
(FVTPL).

Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period the
Company changes its business model for managing
financial assets.

Measured at Amortized Cost :

A financial asset that meets the following two
conditions is measured at amortised cost (net of
any write down for impairment) unless the asset is
designated at fair value through profit or loss under
the fair value option:

• Business model test: The objective of the
company''s business model is to hold the
financial asset to collect the contractual cash
flows (rather than to sell the instrument prior to
its contractual maturity to realise its fair value
changes).

• Cash flow characteristics test: the contractual
terms of the financial asset gives rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the
effective interest rate (EIR) method.

Measured at FVTOCI :

A financial asset that meets the following two
conditions is measured at fair value through
other comprehensive income unless the asset is
designated at fair value through profit or loss under
the fair value option.

• Business model test: The financial asset is held
within a business model whose objective is
achieved by both collecting contractual cash
flows and selling financial assets.

• Cash flow characteristics Test: The contractual
terms of the financial asset give rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.

Financial assets meeting these criteria are measured
initially at fair value plus transaction costs. They are
subsequently measured at fair value with any gains
or losses arising on remeasurement recognized in
other comprehensive income, except for impairment
gains or losses and foreign exchange gains / losses or
interest income, which are recognized in statement

of profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognized in OCI
is reclassified from the equity to profit and loss.

Measured at FVTPL :

Even if an instrument meets the two requirements to
be measured at amortised cost or fair value through
other comprehensive income, a financial asset is
measured at fair value through profit or loss if doing so
eliminates or significantly reduces a measurement or
recognition inconsistency (sometimes referred to as
an accounting mismatch'') that would otherwise arise
from measuring assets or liabilities or recognising
the gains and losses on them on different basis.

All other financial assets are measured at fair value
through profit or loss.

De-recognition

The Company de-recognizes a financial asset on
trade date only when the contractual rights to the
cash flows from the asset expire, or when it transfers
the financial asset and substantially all the risks and
rewards of ownership of the assets to another entity.

Impairment of financial assets

The Company assesses at each date of balance sheet
whether a financial asset or a group of financial assets
is impaired. Ind AS - 109 requires expected credit
losses to be measured through a loss allowance.
The company recognizes lifetime expected losses
for all contract assets and/or all trade receivables
that do not constitute a financing transaction. For
all other financial assets, expected credit losses
are measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the
life time expected credit losses if the credit risk on
the financial asset has increased significantly since
initial recognition.

3.21.2. Financial Liabilities

a. Initial recognition and measurement

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company''s financial liabilities include lease
liabilities, trade and other payables.

b. Subsequent measurement

Financial liabilities are measured subsequently at
amortized cost or Fair Value through Profit and Loss
(FVTPL). A financial liability is classified as FVTPL if it
is classified as held for-trading, or it is a derivative or it
is designated as such on initial recognition. Financial
liabilities at FVTPL are measured at fair value and net
gains and losses, including any interest expense, are
recognized in profit or loss. Other financial liabilities
are subsequently measured at amortized cost
using the effective interest rate method. Interest
expense and foreign exchange gains and losses
are recognized in profit or loss. Any gain or loss on
derecognition is also recognized in profit or loss.

c. Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires.

d. Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet, if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously. The legally enforceable
right must not be contingent on future events and
must be enforceable in the normal course of business
and in the event of default, insolvency or bankruptcy
of the counterparty.

3.22. Prior Period Items

All incomes and expenditures in aggregate pertaining to
prior year(s) above the threshold limit of ? 150 Lakhs are
corrected and accounted retrospectively.

3.23. Site Restoration

At expiry of the Lease period, the Company''s Management
expects to handover the Oil Wells at different locations in
working condition to Government of India, assuming the
leases are not extended in favour of the Company. This
is similar to the manner in which the Indrora oilfield was
handed over to ONGC during the year FY 2019-20.

In view of the above, Management believes that the
Company would not be required to abandon these fields
with any corresponding abandonment costs. However,
as per the decisions taken at Management Committee

Meeting (MCM) with Directorate General of Hydrocarbons
(DGH), the Company creates earmarked funds, each year,
in the form of Bank Deposits, towards Site Restoration
Fund. The said deposits are shown as under the Other
Bank balances as "Under Lien to Government of India /
State Government - For Site Restoration Fund Account"
and accounted for to that extent in the books.

Management believes that this treatment provides a
more prudent and faithful view of Financial Statements
and reflects the economic substance of the transactions,
other events and conditions, and not merely the legal
form.

3.24. Cash Flow Statement

The cash flow statement is prepared by indirect method
set out in Ind AS 7 on cash flow statements and presents
the cash flows by operating, investing & financing
activities of the company. Cash & cash equivalent
presented in the cash flow statement consist of items as
mentioned in accounting policy 3.6 above on Cash and
Cash Equivalents. However, for the purpose of the Cash
Flow Statement the same is net of outstanding bank
overdrafts (if any).

3.25. Borrowing Cost

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost of
the asset. All other borrowing costs are expensed in the
period in which they occur.

Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing
of funds. Borrowing costs also includes exchange
difference to the extent regarded as an adjustment to
the borrowing costs.

3.26. Standard Issued/amended but not yet effective

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. For the year ended 31st
March, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to the
Company.

4. Significant accounting judgements and
key sources of estimates in applying the
accounting policies

Information about Significant judgements and Key sources
of estimation made in applying accounting policies that have
the most significant effects on the amounts recognized in
the financial statements are included in the following notes:

4.1. Defined benefit plan and obligations

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined during actuarial valuation. An
actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate,
future salary increases, mortality rates and attrition
rate. Due to the complexities involved in the valuation
and its long term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

4.2. Fair value measurement of financial instrument

When the fair value of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in a active market then
their fair value is measured using valuation techniques
including the Discounted Cash Flow (DCF) model.
The inputs to this model are taken from observable
markets where possible but where this is not feasible
a degree of judgement is required in establishing the
fair value. Judgements include consideration of input
such as liquidity risk credit risk and volatility. Changes in
assumption about this factor could affect the reported
fair value of financial instruments.

4.3. Impairment of financial assets

The impairment provision for financial asset is based
on assumption about risk of default and expected loss
rates. The company uses judgement in making the
assumptions and selecting the inputs to the impairment
calculation based on company''s past history, the existing
market condition as well as forward looking estimates at
the end of each reporting period.

4.4. Evaluation of indicators for impairment of
Development of Hydrocarbon Properties

The evaluation of applicability of indicators of impairment
of Development of Hydrocarbon Properties requires
assessment of external factors such as significant
decline in value in use, significant changes in the
technological, market, economic or legal environment,
market interest rates etc. and internal factors such
as obsolescence or physical damage of an asset, poor
economic performance of the asset etc. which could
result in significant change in recoverable amount of the
Development of Hydrocarbon Properties.

4.5. Evaluation of Reserves

Management estimates production profile (proved
and probable reserves) in relation to all the Oil Fields
determined by the Geological & Geophysical team as per
industry practice. The estimates so determined are used
for the computation of depletion and impairment testing
of Development of Hydrocarbon Properties.

The year-end reserves of the Company have been
estimated by the Geological & Geophysical team
which follows the guidelines for application of the
petroleum resource management system consistently.
The Company has adopted the reserves estimation
by following the guidelines of Society of Petroleum
Engineers (SPE) which defines ""Reserves are those
quantities of petroleum anticipated to be commercially
recoverable by application of development projects to
known accumulations from a given date forward under
defined conditions. Reserves must further satisfy
four criteria: They must be discovered, recoverable,
commercial and remaining (as of a given date) based
on development project(s) applied"". Volumetric
estimation is made which uses reservoir rock and fluid
properties to calculate hydrocarbons in-place and
then estimate the recoverable reserves from it. As the
field gets matured with production history the material
balance, simulation, decline curve analysis are applied
to get more accurate assessments of reserves.

The annual revision of estimates is based on the yearly
exploratory and development activities and results
thereof. In addition, new in- place volume and ultimate
recoverable reserves are estimated for any new
discoveries or new pool of discoveries in the existing
fields and the appraisal activities may lead to revision
in estimates due to new sub-surface data. Similarly,
reinterpretation is also carried out based on the
production data by updating the static and dynamic

models leading to change in reserves.New
interventional technologies, change in classifications
and contractual provisions may also necessitate
revision in the estimation of reserves.

4.6. Leases

Ind AS 116 requires lessees to determine the lease term
as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use
of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In assessing
whether the Company is reasonably certain to exercise
an option to extend a lease, or not to exercise an option
to terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for the
Company to exercise the option to extend the lease, or not
to exercise the option to terminate the lease. The lease
term in future periods is reassessed to ensure that the
lease term reflects the current economic circumstances.

4.7. Allowances for Doubtful Debts

The Company makes allowances for doubtful debts
through appropriate estimations of irrecoverable
amount. The identification of doubtful debts requires
use of judgment and estimates. Where the expectation
is different from the original estimate, such difference
will impact the carrying value of the trade and other
receivables and doubtful debts expenses in the period in
which such estimate has been changed.

4.8. Provisions and Contingencies

The assessments undertaken in recognising provisions
and contingencies have been made in accordance with
Indian Accounting Standards (Ind AS) 37, ''Provisions,
Contingent Liabilities and Contingent Assets''. The
evaluation of the likelihood of the contingent events is
applied to the best judgement of management regarding
the probability of exposure to potential loss.

IV. Employee Share Based Payment Plan

The Company implemented Selan Exploration Technology Limited Employee Stock Option Scheme 2022 ("Scheme"). The
Scheme was approved by the shareholders through Postal Ballot on 2nd March, 2023. The Scheme enables grant of stock
options to the eligible employees of the Company not exceeding 2,31,472 Shares, which is 1.52% of the paid up equity
share capital of the Company as on 23rd December, 2022. Further, the stock options to any single eligible employee under
the Plan during any one year shall not be equal to or exceed 1% of the issued equity share capital of the Company, except
separate approval of the shareholders of the Company.

The options granted under the Scheme have a vesting period of 3 years. The options granted are based on the performance
of the employees during the year of the grant and their continuing to remain in service over the next 3 years. The process
for determining the eligibility of employees for the grant of stock options under the Scheme shall be determined by the
Nomination and Remuneration Committee (Administrator of the Scheme) based on employee''s grade, performance rating
and such other criteria as may be considered appropriate. The employees shall be entitled to receive one equity share of
the Company on exercise of each stock option, subject to performance of the employees, and continuation of employment
over the vesting period. The exercise price for stock options granted are ? 10/- per option.

49.Disclosures as per Ind AS 116 ''Leases'' are as follows:

The Company''s significant leasing arrangements are in respect of leases for land, building, office premises etc. These leasing
arrangements which are cancellable ranging between 11 months and 9 years generally, or longer, and are usually renewable by
mutual consent on mutually agreed terms.

The Company has used the following practical expedients for lease accounting:

1. Applying a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar
remaining lease term.

2. Applied the exemption not to recognized right of use assets and liabilities for leases with less than 12 months of lease term
and low value leases.

3. Used hindsight in determining the lease term whether the contract contained options to extend or terminate the lease.

e. The weighted average incremental borrowing rate applied to lease liabilities is 10.00%.

f. The Company does not face a significant liquidity risk with regards to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as and when they fall due.

50.Fair value measurement

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in
an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition
regardless of whether that price is directly observable or estimated using other valuation techniques.

The following methods and assumptions were used to estimate the fair values:

i. Fair value of cash and short-term deposits, loans, trade and other short term receivables, trade payables and other financial
liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

ii. Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken into
account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique.

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.

c. During the year ended 31st March 2025 and 31st March 2024, there were no transfers between Level 1 and Level 2 fair value
measurements, and no transfer into and out of Level 3 fair value measurements.

51. Financial Risk Management

The Company''s principal financial liabilities comprise lease liabilities, trade and other payables. The main purpose of these
financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investments, loans,
trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company''s activities expose it to market risk, credit risk and liquidity risk. The Company''s financial risk management is an
integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the
Managing Board. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised
below :

a. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk and commodity price risk.
Financial instrument affected by market risk include investments and deposits, foreign currency receivables, payables,
loans and borrowings.

i. 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. In order to optimize the Company''s position with regard to interest income and
interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The
Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual
funds, NCDs and MLDs. To manage such risks, such investments are done mainly for short durations, in line with the
expected business requirements for such funds.

Interest rate sensitivity

The Company has not availed any borrowings (floating or fixed interest) and also not having substantial long term fixed
deposits and other investments, hence is not exposed to interest rate risk.

ii. Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The entity has limited foreign currency exposure which are mainly on account of purchases
and imports. The Company manages its foreign currency risk by having natural hedge as the revenue on sale of oil and
gas is determined and paid in equivalent US dollars.

The Company does not have any foreign currency exposure as well as no hedging instruments outstanding as at 31st
March 2025 and 31st March 2024.

iii. Commodity price risk

The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any oil price
hedge. The impact of a falling oil price is however partly mitigated via the production sharing formula in the PSCs,
whereby the Company''s share of gross production increases in a falling oil price environment due to the cost recovery
mechanism. Gas prices are fixed for a certain duration of time and the same are linked to policy guidelines issued by
the Government.

b. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables
and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

i. Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and

ii. Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the
Company''s policy. Investments of surplus funds are made only with the institutions having good credit ratings. Credit
worthiness of all theses institutions are reviewed by the Management on a regular basis. All balances with banks and
financial institutions is subject to low credit risk due to the good credit ratings assigned to these entities.

c. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds.
The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.
In the management of liquidity risk, the Company monitors and maintains a level of cash and bank balances deemed
adequate by the management to finance the Company''s operations and mitigate the effects of fluctuations in cash flow.

The table below summarises the maturity profile of the Company''s financial liabilities at the end of the reporting period
based on contractual undiscounted repayment obligations :

53.Impairment of Assets and Customer/Vendor Balances

i. As a policy, the Company annually assesses the impairment of property plant and equipment (PPE), Development
of Hydrocarbon Properties and other non-current assets by comparing the carrying value of PPE, Development of
Hydrocarbon Properties and other non-current assets with its fair value. In case the fair value is less than the carrying
value an impairment charge is created. Management has concluded that there is no impairment of PPE, Development of
Hydrocarbon Properties and other assets during the current year and in previous year.

ii. Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management,
the value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the
value at which these are stated in the Balance Sheet.

Explanation for change in the ratio by more than 25% as compared to the preceding year
a. Current Ratio

Mainly on account of increase in current investments and decrease in current liabilities as compared to preceding year,
current ratio is higher.

d. Return on Equity Ratio

Due to increase in profit after taxes for current year as compared to preceding year, return on equity ratio is higher.

g. Trade Payables Turnover Ratio

Due to decrease in average trade payables as compared to preceding year, trade payable turnover ratio is higher.

i. Net Profit Ratio

Due to increase in profit after tax and increase in net sales as compared to preceding year, net profit ratio is higher.

j. Return on Capital Employed

Due to increase in EBIT for current year as compared to preceding year, return on capital employed ratio is higher.

56.2. Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per section 2(87) of the Companies Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017.

56.3. Loans or Advances to Promoters, Directors, KMPs and the related parties

The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties
(as defined under the Act), either severally or jointly with any other person during the year ended 31st March, 2025 and the
year ended 31st March, 2024, except as disclosed in Note No. 8 of the financial statements.

56.4. Utilisation of Borrowed Funds and Share Premium

i. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other persons or entities including foreign entities (intermediaries) with the
understanding that the Intermediaries shall 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 provided any guarantee, security or
the like or on behalf of the Ultimate Beneficiaries.

ii. The Company has not received any fund from any persons or entities, including foreign entities (funding party) with
the understanding that the Company shall 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 provided any guarantee,
security or the like or on behalf of the Ultimate Beneficiaries.

56.5. Compliance with approved Scheme(s) of Arrangements

The Board of Directors in their meeting held on 22nd November, 2023 had approved a Composite Scheme of Arrangement
between Antelopus Energy Private Limited, the Company and their respective shareholders and creditors, in compliance
with sections 230 to 232 read with section 66 and section 52 and other applicable provisions of the Companies Act,
2013 and rules made thereunder ("Scheme"). The Scheme, inter alia, provides for: (a) reduction of the capital of the
Antelopus Energy Private Limited ; and (b) amalgamation of the Antelopus Energy Private Limited with and into the
Company. The Company will issue (a) 4,287 equity shares of the Company of face value of ? 10/- each for every 10,000
equity shares of Antelopus Energy Private Limited; (b) 4,287 equity shares of the Company of face value of ? 10/- each
for every 10,000 Class A1 equity shares of Antelopus Energy Private Limited; and (c) 18 equity shares of the Company of
face value of ? 10/- each for every 10,000 Non-Convertible 0.001% Redeemable Preference Shares of Antelopus Energy
Private Limited to the Shareholders of Antelopus Energy Private Limited as on the record date defined in the Scheme.
The Company has received ''in-principle'' approval from BSE Limited and National Stock Exchange of India Limited for the
Composite Scheme of Arrangement between Antelopus Energy Private Limited ("Antelopus" or "Transferor Company"),
the Company ("Selan" or "Transferee Company") and their respective shareholders and creditors on 27th June, 2024.
The Hon''ble National Company Law Tribunal, Chandigarh Bench ("NCLT") vide its order dated 12th August, 2024 had
directed to convene a meeting of the equity shareholders of the Company on Saturday, 5th October, 2024 through video¬
conferencing with the facility of remote e-voting to approve the Composite Scheme of Arrangement between Transferor
and Transferee Companies and their respective shareholders and creditors ("Scheme") in accordance with the provisions
of Section 230-232 read with Section 66 and Section 52 and other applicable provisions of the Companies Act, 2013.
Accordingly, a meeting of the equity shareholders of the Company was held on 5th October, 2024 through Video
Conference for the purpose of approving the Scheme. The proposed resolution approving the Scheme was passed by the
equity shareholders representing requisite majority. Subsequently, the second motion petition was filed with the Hon''ble
NCLT on 15th October, 2024. Joint hearing was conducted by the Hon''ble NCLT on 8th May, 2025. The Hon''ble NCLT heard
the submissions and reserved the Order.

56.6.Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender.

57. Presentation of Negative Amounts

Unless otherwise stated or the context requires it to be interpreted otherwise, figures in bracket in the financial statements represent
negative amounts.

58. Previous year figures have been rearranged / regrouped / reclassified wherever necessary.
Further, there are no material regroupings / reclassifications during the year.

For V. Sankar Aiyar & Co. For and on behalf of the Board of Directors

Chartered Accountants Siva Kumar Pothepalli Suniti Kumar Bhat

Firm Registration No.: 109208W Whole-Time Director Chairman and Managing Director

(DIN 08368463) (DIN 08237399)

Puneet Kumar Khandelwal Raajeev Tirupati Yogita

Partner Chief Financial Officer Company Secretary

(M. No. 429967) (M.No. A62611)

Place: Kolkata Place: Gurgaon Place: Gurgaon

Date: 9th May, 2025 Date: 9th May, 2025 Date: 9th May, 2025

3.19 Provisions, Contingent Liabilities and Contingent Assets

a) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that the outflow of resources embodying economic benefits will be required to settle the obligation and can be reasonably estimated. The expense relating to the provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate the risks specific to the liability. When discounting is used, the increase in the provision due to passage of time is recognised as a finance cost.

b) Contingent Liabilities and Contingent Assets

Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognized because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in Other Notes to financial statements.

Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised. A contingent asset is disclosed, in financial statements, where an inflow of economic benefits is probable.

3.20 Fair Value Measurement

The Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either;

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the assets in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as whole :

Level 1 - Quoted (unadjusted) market prices in active market for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

External valuers are involved for valuation of significant assets and liabilities. Involvement of external valuers is decided by the management of the Company considering the requirements of Ind AS and selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.21 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity of another entity.

3.21.1 Financial Assets

a) Initial Recognition and Measurement

All financial assets are initially recognized when the Company becomes a party to the contractual provisions of the instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not recorded at fair value through Profit or Loss, transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

b) Subsequent Measurement

For purposes of subsequent measurement financial assets are classified in three categories:

• Measured at amortised cost;

• Measured at Fair value through Other Comprehensive Income (FVTOCI); and

• Measured at Fair value through Profit or Loss (FVTPL).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

Measured at Amortized Cost :

A financial asset that meets the following two conditions is measured at amortised cost (net of any write down for impairment) unless the asset is designated at fair value through profit or loss under the fair value option:

• Business model test: The objective of the company''s business model is to hold the financial asset to collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realise its fair value changes).

• Cash flow characteristics test: the contractual terms of the financial asset gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.

Measured at FVTOCI :

A financial asset that meets the following two conditions is measured at fair value through other comprehensive income unless the asset is designated at fair value through profit or loss under the fair value option.

• Business model test: The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.

• Cash flow characteristics Test: The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured at fair value with any gains or losses arising on remeasurement recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains / losses or interest income, which are recognized in statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to profit and loss.

Measured at FVTPL :

Even if an instrument meets the two requirements to be measured at amortised cost or fair value through other comprehensive income, a financial asset is measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an accounting mismatch) that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different basis.

All other financial assets are measured at fair value through profit or loss.

De-recognition

The Company de-recognizes a financial asset on trade date only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the assets to another entity.

Impairment of Financial Assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss allowance. The company recognizes lifetime expected losses for all contract assets and/or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

3.21.2 Financial Liabilities

a) Initial Recognition and Measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include lease liabilities, trade and other payables.

b) Subsequent Measurement

Financial liabilities are measured subsequently at amortized cost or Fair Value through Profit and Loss (FVTPL). A financial liability is classified as FVTPL if it is classified as held for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

c) Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

d) Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.

3.22 Prior Period Items

All incomes and expenditures in aggregate pertaining to prior year(s) above the threshold limit of ^ 150 Lakhs are corrected and accounted retrospectively.

3.23 Site Restoration

The company expects to surrender its fields Bakrol, Lohar, Karjisan, to the Government of India at the expiry of lease or extended lease., with the oil wells in working condition in the same manner as already done for Indrora oil field in the financial year 2019-20. The company has surrendered Ognaj oil field due to rapid urbanisation in the block area. However, Government approval is pending to complete the process of surrender.

In view of the above, Management believes that the Company would not be required to abandon these fields with any corresponding abandonment costs. However, as per the decisions taken at Management Committee Meeting (MCM) with Directorate General of Hydrocarbons (DGH), the Company creates earmarked funds, each year, in the form of Bank Deposits, towards Site Restoration Fund. The said deposits are shown as under the Other Bank balances as “Under Lien to Government of India / State Government - For Site Restoration Fund Account" and accounted for to that extent in the books.

Management believes that this treatment provides a more prudent and faithful view of Financial Statements and reflects the economic substance of the transactions, other events and conditions, and not merely the legal form.

3.24 Cash Flow Statement

The cash flow statement is prepared by indirect method set out in Ind AS 7 on cash flow statements and presents the cash flows by operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consist of items as mentioned in accounting policy 3.6 above on Cash and Cash Equivalents. However, for the purpose of the Cash Flow Statement the same is net of outstanding bank overdrafts (if any).

3.25 Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs also includes exchange difference to the extent regarded as an adjustment to the borrowing costs.

3.26 Standard Issued/ Amended but not yet Effective

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. For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

4. Significant Accounting Judgements and Key Sources of Estimates in Applying the Accounting Policies

Information about Significant judgements and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements are included in the following notes:

4.1 Defined Benefit Plan and Obligations

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined during actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

4.2 Fair Value Measurement of Financial Instrument

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in a active market then their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to this model are taken from observable markets where possible but where this is not feasible a degree of judgement is required in establishing the fair value. Judgements include consideration of input such as liquidity risk credit risk and volatility. Changes in assumption about this factor could affect the reported fair value of financial instruments.

4.3 Impairment of Financial Assets

The impairment provision for financial asset is based on assumption about risk of default and expected loss rates. The company uses judgement in making the assumptions and selecting the inputs to the impairment calculation based on company''s past history, the existing market condition as well as forward looking estimates at the end of each reporting period.

4.4 Evaluation of Indicators for Impairment of Development of Hydrocarbon Properties

The evaluation of applicability of indicators of impairment of Development of Hydrocarbon Properties requires assessment of external factors such as significant decline in value in use, significant changes in the technological, market, economic or legal environment, market interest rates etc. and internal factors such as obsolescence or physical damage of an asset, poor economic performance of the asset etc. which could result in significant change in recoverable amount of the Development of Hydrocarbon Properties.

4.5 Evaluation of Reserves

Management estimates production profile (proved and probable reserves) in relation to all the Oil Fields determined by the Geological & Geophysical team as per industry practice. The estimates so determined are used for the computation of depletion and impairment testing of Development of Hydrocarbon Properties.

The year-end reserves of the Company have been estimated by the Geological & Geophysical team which follows

the guidelines for application of the petroleum resource management system consistently. The Company has adopted the reserves estimation by following the guidelines of Society of Petroleum Engineers (SPE) which defines “Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria: They must be discovered, recoverable, commercial and remaining (as of a given date) based on development project(s) applied". Volumetric estimation is made which uses reservoir rock and fluid properties to calculate hydrocarbons in-place and then estimate the recoverable reserves from it. As the field gets matured with production history the material balance, simulation, decline curve analysis are applied to get more accurate assessments of reserves.

The annual revision of estimates is based on the yearly exploratory and development activities and results thereof. In addition, new in-place volume and ultimate recoverable reserves are estimated for any new discoveries or new pool of discoveries in the existing fields and the appraisal activities may lead to revision in estimates due to new sub-surface data. Similarly, reinterpretation is also carried out based on the production data by updating the static and dynamic models leading to change in reserves. New interventional technologies, change in classifications and contractual provisions may also necessitate revision in the estimation of reserves.

4.6 Leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

4.7 Allowances for Doubtful Debts

The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

4.8 Provisions and Contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied to the best judgement of management regarding the probability of exposure to potential loss.

(k) Expected contribution to the defined benefit plan for the next annual reporting period

The Company expects to contribute ? 35.00 Lakhs (previous year Nil) to its gratuity fund in 2024-25.

(l) Description of Risk Exposures

Valuation are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risk as follows:-

( ) Salary Increases - Actual Salary increase will increase the plan''s liability. Increase in salary, increase in rate assumption in

^(a) future valuation will also increase the liability.

(b) Investment Risk - Actual return on plan asset may be lower than the discount rate assumed at the last valuation date which

^(b) can increase the liability.

(c) Discount Rate - Reduction in discount rate in subsequent valuation can increase the plan''s liability.

, - Mortality and Disability - Actual death and disability cases proving lower or higher than assumed in the valuation can impact

^(d) the liability.

( ) Withdrawal - Actual withdrawal proving higher or lower than assumed withdrawal and change of withdrawal rates at

^(e) subsequent valuations can impact plan''s liability.

III Other long-term employee benefits:

Leave encashment

The Company provides for the expected cost of accumulating paid leave which can be carried forward and used in future periods by the employees. The obligation for accumulating paid leaves has been recognised at the end of the reporting period. W.e.f. 1st September 2022, the Company had discontinued the leave-encashment facility to its employees.

_IV Employee Share Based Payment Plan

During the current year, the Company implemented Selan Exploration Technology Limited Employee Stock Option Scheme - 2022 (“Scheme”). The Scheme was approved by the shareholders through Postal Ballot on 2nd March, 2023. The Scheme enables grant of stock options to the eligible employees of the Company not exceeding 2,31,472 Shares, which is 1.52% of the paid up equity share capital of the Company as on 23rd December, 2022. Further, the stock options to any single eligible employee under the Plan during any one year shall not be equal to or exceed 1% of the issued equity share capital of the Company, except with separate approval of the shareholders of the Company.

The options granted under the Scheme have a vesting period of 3 years. The options granted are based on the performance of the employees during the year of the grant and their continuing to remain in service over the next 3 years. The process for determining the eligibility of employees for the grant of stock options under the Scheme shall be determined by the Nomination and Remuneration Committee (Administrator of the Scheme) based on employee''s grade, performance rating and such other criteria as may be considered appropriate. The employees shall be entitled to receive one equity share of the Company on exercise of each stock option, subject to performance of the employees, and continuation of employment over the vesting period. The exercise price for stock options granted are ? 10/- per option.

49. Fair value measurement

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The following methods and assumptions were used to estimate the fair values:

(i) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

(ii) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.

L i 2 other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either

directly or indirectly.

techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable

Level 3 :

market data.

The following tables provides classification of financial instruments and the fair value hierarchy of the Company''s assets and liabilities.

50. Financial Risk Management

The Company''s principal financial liabilities comprise lease liabilities, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investments, trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company''s activities expose it to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised below :

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk and commodity price risk. Financial instrument affected by market risk include investments, foreign currency receivables and payables.

(i) 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. In order to optimize the Company''s position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual funds, NCDs and MLDs. To manage such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.

Interest rate sensitivity

The Company has not availed any borrowings (floating or fixed interest) and also not having substantial long term fixed deposits and other investments, hence is not exposed to interest rate risk.

(ii) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The entity has limited foreign currency exposure which are mainly on account of purchases and imports. The Company manages its foreign currency risk by having natural hedge as the revenue on sale of oil and gas is determined and paid in equivalent US dollars.

The Company does not have any foreign currency exposure as well as no hedging instruments outstanding as at 31st March 2024 and 31st March 2023.

(iii) Commodity price risk

The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any oil price hedge. The impact of a falling oil price is however partly mitigated via the production sharing formula in the PSCs, whereby the Company''s share of gross production increases in a falling oil price environment due to the cost recovery mechanism. Gas prices are fixed for a certain duration of time and the same are linked to policy guidelines issued by the Government.

(b) Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily loans, trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by the management subject to the Company''s established policy, procedures and control relating to individual group of customers. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

The ageing analysis of the receivables (gross of provisions) have been considered from the date the invoice falls due:

54 Acquistion of Interest in the Oil/Gas Field

The Company has entered into an agreement with PFH Oil and Gas Private Limited (the “Transferor”) for acquisition of 100% (One Hundred Percent) Participating Interest of Contract area CB/ONDSF/ELAO/2016. For acquisition of this Participating Interest, there is no upfront payment to the Transferor as consideration. The Company will be required to pay 7.5% of the monthly profit (after recovery of all cost incurred by the Company on contract area) as transfer fees to the Transferor, as and when earned. On 18th December 2023, Company has received the approval of Ministry of Petroleum & Natural Gas, Government of India for transfer of 100% (One Hundred Percent) Participating Interest from the Transferor to the Company of Contract area CB/ONDSF/ELAO/2016. Accordingly, Company has acquired the participating interest of the said contract area w.e.f. 18th December, 2023 and the Company is in process to initiate project execution activities.

56.2 Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

56.3 Loans or advances to Promotors, Directors, KMPs and the related parties

The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties (as defined under the Act), either severally or jointly with any other person during the year ended 31st March, 2024 and the year ended 31st March, 2023, except as disclosed in Note No. 9 of the financial statements.

56.4 Compliance with approved Scheme(s) of Arrangements

During the Year, the Board of Directors in their meeting held on 22nd November, 2023 have approved a Composite Scheme of Arrangement between Antelopus Energy Private Limited, the Company and their respective shareholders and creditors, in compliance with sections 230 to 232 read with section 66 and section 52 and other applicable provisions of the Companies Act, 2013 and rules made thereunder (“Scheme”). The Scheme, inter alia, provides for: (a) reduction of the capital of the Antelopus Energy Private Limited ; and (b) amalgamation of the Antelopus Energy Private Limited with and into the Company. The Company will issue (a) 4,287 equity shares of the Company of face value of ? 10/- each for every 10,000 equity shares of Antelopus Energy Private Limited; (b) 4,287 equity shares of the Company of face value of ? 10/- each for every 10,000 Class A1 equity shares of Antelopus Energy Private Limited; and (c ) 18 equity shares of the Company of face value of ? 10/- each for every 10,000 Non-Convertible 0.001% Redeemable Preference Shares of Antelopus Energy Private Limited to the Shareholders of Antelopus Energy Private Limited as on the record date defined in the Scheme. The Scheme is, inter alia, subject to receipt of requisite approvals from statutory and regulatory authorities, including from the stock exchanges, the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal and the shareholders and creditors of the Company. As available on the SEBI website, SEBI is in receipt of NOC from the National Stock Exchange of India Limited and BSE Limited dated 21st March, 2024 and the Scheme is curently under process with the SEBI. Post clearance from the Stock Exchanges, the Company will file the Scheme before the Hon''ble National Company Law Tribunal, Chandigarh Bench for the necessary directions.

56.5 Utilisation of Borrowed Funds and Share Premium

(i) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities including foreign entities (intermediaries) with the understanding that the

Intermediaries shall 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 provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

(ii) The Company has not received any fund from any persons or entities, including foreign entities (funding party) with the

understanding that the Company shall 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 provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

56.6 Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender.

57 Refund of Excess Cess Remitted

During the year, the Company has filed a claim for refund of excess Cess remitted during the Financial Year 2020-21, 2021-22 and 2022-23 amounting to ? 655.81 Lakhs (out of this ? 649.71 Lakhs charged to the Statement of Profit and Loss, in the year in which Cess was deposited). The refund claim was rejected by the excise department in March 2024. Now, the Company is in process to file an appeal against the order at appropriate level.

58 Presentation of Negative Amounts

Unless otherwise stated or the context requires it to be interpreted otherwise, figures in bracket in the financial statements represent negative amounts.

50 Previous year figures have been rearranged/regrouped/reclassified wherever necessary. Further, there are no material regroupings/reclassifications during the year.

For V. Sankar Aiyar & Co. For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No.: 109208W

Puneet Kumar Khandelwal Raajeev Tirupati Siva Kumar Pothepalli

Partner Chief Financial Officer Whole-Time Director

(M. No. 429967) (DIN 08368463)

Place: Gurgaon Yogita Suniti Kumar Bhat

Date_: 06-May-2024 Company Secretary Managing Director

(M. No. A62611) (DIN 08237399)

13.1 No trade receivables are due from the directors or officers of the Company either severally or jointly with any other person. No trade receivables are due from firms or private companies respectively in which any director is a partner, a director or member.

13.2 The Company is exposed to credit risk from its operating activities, primarily trade receivables which the Company minimizes by dealing with high credit rating counterparties. Outstanding customer receivables are regularly monitored on individual basis and are reconciled at regular intervals. Impairment analysis of trade receivables is done at each reporting date on an individual basis. The expected loss recognised at each reporting date is Nil.

15.1 This amount has been deposited with banks under section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipment''s and installations in a manner agreed with the Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment, etc. This amount is considered as restricted cash and hence not considered as ''Cash and cash equivalents''.

16.1 There are no amount recoverable from directors or other officers of the Company either severally or jointly with any other persons. No amount recoverable from firms or private companies respectively in which any director is a partner, a director or a member, except ^ 0.59 Lakh (previous year Nil) are recoverable from a private company in which a director of the Company is director.

35.2 There is no income or transaction which has not been disclosed or recorded in the books of accounts which has been surrendered or disclosed as income in the tax assessment during the year 31st March, 2023 and 31st March, 2022.

b) In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, Inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the investment multiple in the preceding year is less than 3.5. The Company received an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has been paying the Profit Petroleum as per the order of the Delhi High Court although it has appealed against this to the Division Bench of the Delhi High Court and the same is sub judice.

c) In January, 2022, the Company had received a query from Directorate General of Hydrocarbons (DGH) on calculation and deposit of Profit Petroleum for Lohar field for the first and second quarters of FY 2021-22. Further, during the current year, Company has also received a demand letter dated 12th October 2022, from DGH, on payment of difference of short payment of Lohar Profit Petroleum post extension of Production Sharing Contract (PSC) in March 2020, along with interest. The same was refuted by the Company, and duly responded with reference to the applicable profit petroleum provisions under the PSC Addendum signed between MoPNG and the Company, on extension of lease for Lohar field beyond March 2020. The said matter is sub - judice.

d) The Company, under a Technical Manpower Service Contract, shall reimburse Gratuity, if any, paid by the manpower supply contractor to contractual labour employed in Bakrol, Lohar and Karjisan fields, under the Payment of Gratuity Act, 1972. As per the contractual terms, the said gratuity needs to be paid to the contractual labour by the manpower supply contractor, which shall then be reimbursed by the Company. The said liability arises due to the termination of the contract with the existing manpower supply agency and appointment of a new manpower service agency. Pursuant to the Contract, the company has received a demand from the previous manpower supply agency for payment of gratuity to the workers who have been in continuous engagement for a period exceeding the period, in accordance with the Gratuity Act. The Company is currently in the process to evaluating the authenticity of the said claim, in accordance with the contractual provisions.

In respect of the matters in Note No. 38-B, future cash outflows are determinable only on receipt of judgements/ decisions pending at various forums/ authorities. Furthermore, there is no possibility of any reimbursements to be made to the Company from any third party.

39 NOTE ON PRICING OF CRUDE OIL SUPPLIED FROM KARJISAN FIELD

The Company had received an interim price for the oil produced from Karjisan field. As per the terms of the Karjisan PSC, the interim price is 70% of the Brent price. Negotiations with Indian Oil Corporation Limited (IOCL) are ongoing to arrive at a final price, so that payment of differential included in trade receivables amounting to '' 85.71 Lakhs (P.Y. '' 85.71 Lakhs) can be realised by the Company, inclusive of amounts related to reimbursement of VAT.

40 Disclosures as required for loans given, investments made and guarantee given covered u/s 186(4) of the Companies Act, 2013 and pursuant to SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015 :

During the year, Company has not given any loan, security or provided any guarantee and for investments made refer Note No. 8 and 12 of the financial statements.

II Defined Benefit Plans Gratuity

(a) The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service subject to a maximum of ^ 20 Lakhs. Vesting occurs upon completion of five continuous years of service in accordance with Indian Law. The Company has taken a policy with Life Insurance Corporation of India approved by IRDA for meeting the accruing liability on account of gratuity. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

(k) Expected contribution to the defined benefit plan for the next annual reporting period

The Company expects to contribute '' Nil (previous year '' 35.00 Lakhs) to its gratuity fund in 2022-23.

(l) Description of Risk Exposures

Valuation are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risk as follows:-

(a) Salary Increases - Actual Salary increase will increase the plan''s liability. Increase in salary, increase in rate assumption in future valuation will also increase the liability.

(b) Investment Risk - Actual return on plan asset may be lower than the discount rate assumed at the last valuation date which can increase the liability.

(c) Discount Rate - Reduction in discount rate in subsequent valuation can increase the plan''s liability.

(d) Mortality and Disability - Actual death and disability cases proving lower or higher than asssumed in the valuation can impact the liabilities.

(e) Withdrawal - Actual withdrawal proving higher or lower than assumed withdrawal and change of withdrawal rates at subsequent valuations can impact plan''s liability.

III Other long-term employee benefits:

Leave encashment

The Company provides for the expected cost of accumulating paid leave which can be carried forward and used in future periods by the employees. The obligation for accumulating paid leaves has been recognised at the end of the reporting period. W.e.f. 1st September 2022, the Company has discontinued the leave-encashment facility to its employees.

47 DISCLOSURES AS PER IND AS 116 ''LEASES'' ARE AS FOLLOWS:

The Company''s significant leasing arrangements are in respect of leases for land, building, office premises etc. These leasing arrangements which are cancellable ranging between 11 months and 9 years generally, or longer, and are usually renewable by mutual consent on mutually agreed terms. The Company has used the following practical expedients for lease accounting^. Applying a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar remaining lease term.2. Applied the exemption not to recognized right of use assets and liabilities for leases with less than 12 months of lease term and low value leases.3. Used hindsight in determining the lease term whether the contract contained options to extend or terminate the lease.

(e) The weighted average incremental borrowing rate applied to lease liabilities is 10.00%.

(f) The Company does not face a significant liquidity risk with regards to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

48 FAIR VALUE MEASUREMENT

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The following methods and assumptions were used to estimate the fair values:

(i) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

(ii) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

(c) During the year ended 31st March 2023 and 31st March 2022, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

49. FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprises lease liabilities, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investments, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company''s activities expose it to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised below :

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk and commodity price risk. Financial instrument affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings.

(i) 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. In order to optimize the Company''s position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual funds, NCDs and MLDs. To manage such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.

Interest rate sensitivity

The Company has not availed any borrowings (floating or fixed interest) and also not having substantial long term fixed deposits and other investments, hence is not exposed to interest rate risk.

(ii) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The entity has limited foreign currency exposure which are mainly on account of purchases and imports. The Company manages its foreign currency risk by having natural hedge as the revenue on sale of oil and gas is determined and paid in equivalent US dollars.

The Company does not have any foreign currency exposure as well as no hedging instruments outstanding as at 31 March 2023 and 31 March 2022.

(iii) Commodity price risk

The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any oil price hedge. The impact of a falling oil price is however partly mitigated via the production sharing formula in the PSCs, whereby the Company''s share of gross production increases in a falling oil price environment due to the cost recovery mechanism. Gas prices are fixed for a certain duration of time and the same are linked to policy guidelines issued by the Government.

(b) Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to individual group of customers. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The ageing analysis of the receivables (gross of provisions) have been considered from the date the invoice falls due:

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company''s policy. Investments of surplus funds are made only with the institutions having good credit ratings. Credit worthiness of all theses institutions are reviewed by the Management on a regular basis. All balances with banks and financial institutions is subject to low credit risk due to the good credit ratings assigned to these entities.

(c) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.

In the management of liquidity risk, the Company monitors and maintains a level of cash and bank balances deemed adequate by the management to finance the Company''s operations and mitigate the effects of fluctuations in cash flow. The table below summarises the maturity profile of the Company''s financial liabilities at the end of the reporting period based on contractual undiscounted repayment obligations.

50 CAPITAL MANAGEMENT

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings.

51 IMPAIRMENT OF ASSETS AND CUSTOMER/VENDOR BALANCES

(i) As a policy, the Company annually assesses the impairment of property plant and equipment (PPE), Development of Hydrocarbon Properties and other non-current assets by comparing the carrying value of PPE, Development of Hydrocarbon Properties and other non-current assets with its fair value. In case the fair value is less than the carrying value an impairment charge is created. Management has concluded that there is no impairment of PPE, Development of Hydrocarbon Properties and other assets during the current year and in previous year.

(ii) Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

54 Additional regulatory information required by Schedule III of Companies Act, 201354.1 Relationship with Struck off Companies:

There are no transaction with the companies whose name has been struck off under section 248 of The Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31st March, 2023 and the year ended 31st March, 2022.

54.2 Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

54.3 Loans or Advances to Promoters, Directors, KMPs and the related parties

The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties (as defined under the Act), either sevarally or jointly with any other person during the year ended 31st March, 2023 and the year ended 31st March, 2022.

54.4 Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any Scheme of Arrangements, hence this clause not applicable to the Company.

54.5 Utilisation of Borrowed Funds and Share Premium

(i) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities including foreign entities (intermediaries) with the understanding that the Intermediaries shall 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 provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

(ii) The Company has not received any fund from any persons or entities, including foreign entities (funding party) with the understanding that the Company shall 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 provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

54.6 Willful Defaulter

The Company has not been declared as a willful defaulter by any bank or financial Institution or other lender.

55 "Presentation of Negative Amounts"

Unless otherwise stated or the context requires it to be interpreted otherwise, figures in bracket in the financial statements

represent negative amounts.

56 Previous year figures have been rearranged / regrouped / reclassified wherever necessary. Further, there are no material

regroupings / reclassifications during the year.

1 Corporate Information

Selan Exploration Technology Limited (The ''Company'') was incorporated in India on 5th July, 1985. The Company is a public limited company whose shares are listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The registered office is located at J-47/1, Shyam Vihar, Dindarpur, Najafgarh, Delhi -110043. The company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GOI) for Bakrol, Indora, Lohar, Ognaj and Karjisan fields.

2 Authorization of Financial Statements

The financial statements of the Company for the year ended 31 March 2018 were authorised for issue in accordance with a resolution of the Board of Directors approved on 15 May 2018.

There are no debts due by directors or other officers of the Company or any of them either severally or jointly with any other persons or debts due by firms or private companies respectively in which any director is a partner or a director or a member.

The Company is exposed to credit risk from its operating activities, primarily trade receivables which the Company minimizes by dealing with high credit rating counterparties . Outstanding customer receivables are regularly monitored on individual basis and are reconciled at regular intervals. Impairment analysis of trade receivables is done at each reporting date on an individual basis. The expected loss recognised at each reporting date is '' Nil.

* Site Restoration Fund Account : This amount has been deposited with banks under section 33ABA of the Income Tax Act, 1961 and can be withdrawn only for the purposes specified in the Scheme i.e. towards removal of equipment''s and installations in a manner agreed with the Central Government pursuant to an abandonment plan to prevent hazards to life, property, environment, etc.. This amount is considered as restricted cash and hence not considered as ''Cash and cash equivalents''.

There are no advances to directors or other officers of the Company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member.

b) Rights, preferences and restrictions attaching to Equity Shares

- The Company has issued only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

- In 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 share holders.

Nature of reserves :

Capital reserve: Capital reserve was created from profit on forfeiture of warrants/ forfeiture of shares. The Company may use this reserve for issue of fully paid bonus shares to its members.

Capital redemption reserve: Capital redemption reserve was created on buy back of equity shares. The Company may use this reserve in paying up unissued shares of company to be issued to members of the company as fully paid bonus shares.

Securities premium reserve: Security premium reserve was created on issue of equity shares at premium. The Company may use this reserve for issue of fully paid bonus shares to its members and for buy-back of its shares. General reserve: General reserve represents the reserve created by apportionment of profit generated during the year or transfer from other reserves either voluntarily or pursuant to statutory requirements. The same is a free reserve and available for distribution.

Retained earnings: Retained earnings represents the undistributed profit of the Company.

Other comprehensive income (re-measurements of defined benefit plans): This reserve is the cumulative acturial gain/ (loss) on measurement of defined benefit liability (Gratuity).

b) In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, Inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the investment multiple in the preceding year is less than 3.5. The Company received an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the Delhi High Court and the same is sub judice.

3 MINIMUM ALTERNATE TAX (MAT)

The Company is entitled to avail Credit under Section 115 JA (1A). Accordingly, MAT credit entitlement has been considered as an asset to the extent there is convincing evidence that the Company will pay normal income tax during specified period under law.

4 DISCLOSURES AS REQUIRED FOR LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186(4) OF THE COMPANIES ACT, 2013:

The Company has not given any loan, security or provided any guarantee, nor made any investment during the year as per section 186(4) of the Companies Act, 2013.

5 DEFINED BENEFIT PLANS

I Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service subject to a maximum of Rs. 20 Lakhs. Vesting occurs upon completion of five continuous years of service in accordance with Indian Law. The Company has taken a policy with Life Insurance Corporation of India approved by IRDA for meeting the accruing liability on account of gratuity. The premium, actuarially ascertained by the insurance company is charged to profit and loss account. The amount debited to profit and loss account is Rs. 1.30 lacs.

Other long-term employee benefits:

II Leave encashment

The Company provides for the expected cost of accumulating paid leave whcich can be carried forward and used in future periods by the employees. The obligation for accumulating paid leaves has been recognised at the end of the reporting period.

In respect of Gratuity & Leave Encashment, provision is made based on the actuarial valuation by an independent actuary. The following information as required under Ind AS-19 are based on the report of the Actuary :

6 FAIR VALUE MEASUREMENT

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

The following methods and assumptions were used to estimate the fair values:

1 Fair value of cash and short-term deposits, trade and other short term receivables, trade payables , other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

2 Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : other techniques for which all inputs which have a significant effects on the recorded fair value are observable, either directly or indirectly.

Level 3 : techniques which use inputs that have a significant effects on the recorded fair value that are not based on observable market data.

7 FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise borrowings, trade and other payables and advances from customers. The main purpose of these financial liabilities is to finance the Company''s operations, projects under implementation and to provide guarantees to support its operations. The Company''s principal financial assets include Investment, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised below :

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, currency risk and commodity price risk. Financial instrument affected by market risk include investments and deposits, receivables, payables, loans and borrowings.

(i) 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. In order to optimize the Company''s position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The Company has not availed any floating interest borrowings, hence is not exposed to interest rate risk.

(ii) Foreign Currency risk

The Indian Rupee is the entity''s most significant currency. As a consequence, the entity''s results are presented in Indian Rupees and exposures are managed against Indian Rupees accordingly. The entity has limited foreign currency exposure which are mainly on account of purchases and exports.

The company has not hedged its foreign currency exposure as at 31 March 2018, 31 March 2017 and 1 April 2016.

(iii) Commodity price risk

The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any oil price hedge. The impact of a falling oil price is however partly mitigated via the production sharing formula in the PSCs, whereby the Company''s share of gross production increases in a falling oil price environment due to the cost recovery mechanism. Gas prices are fixed for a certain duration of time and the same are based on policy guidelines issued by the Government.

(b) Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to individual group of customers. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company''s policy. Investments of surplus funds are made only with approved authorities. Credit limits of all authorities are reviewed by the Management on a regular basis. All balances with banks and financial institutions is subject to low credit risk due to the good credit ratings assigned to these entities.

(c) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.

In the management of liquidity risk, the Company monitors and maintains a level of cash and bank balances deemed adequate by the management to finance the Company''s operations and mitigate the effects of fluctuations in cash flow.

The table below summaries the maturity profile of the Company''s financial liabilities at the end of the reporting period based on contractual undiscounted repayment obligations.

8 CAPITAL MANAGEMENT

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings.

9 EXPLANATION OF TRANSITION TO IND AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 3 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (The Company''s date of transition).

An explanation of how the transition from GAAP to Ind AS has effected the Company''s financial position, financial performance and cash flows is set out below :

Exemptions and exceptions availed

In preparing the Financial Statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions in transition from Indian GAAP to Ind AS :

a) Optional Exemptions

i. Deemed Cost - Property, plant and equipment and intangible assets (including Devlopment of Hydrocarbon Properties):

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the GAAP and use that as its deemed cost as on the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Company has chosen to retain the cost of the Property, plant & equipment and intangible assets and Development of Hydrocarbon Properties at their value as per Indian GAAP.

b) Mandatory Exemptions

i. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistant with estimate made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies), unless there is unassailable evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with Indian GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under Indian GAAP:

- Impairment of financial assets based on expected credit loss model

- Fair value through Other Comprehensive Income

ii. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

e) Notes to the Reconciliation

i Figures as per IGAAP as on 01.04.2016 and 31.03.2017 have been re-classified / re-grouped / re-stated wherever necessary.

ii. Fair valuation of Long term Security Deposit

Under Indian GAAP, interest free security deposits (that are refundable in cash on completion of contract) are recorded at their transaction value. Under Ind AS all financial assets are required to be recognised at fair value. Accordingly, the company has done fair valuation of security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent / interest expense.

iii. Actuarial gains/(losses)

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plans on acturial report basis. Under Indian GAAP, acturial gain and losses were charged to statement of profit and loss. Under Ind AS, the Company''s accounting policy is to recognise all actuarial gains and losses on post-employment benefit plans in other comprehensive income.

10 The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

11 Presentation of Negative Amounts

Unless otherwise stated or the context requires it to be interpreted otherwise, figures in bracket in the financial statements represent negative amounts.

12 Previous year figures have been rearranged / regrouped where ever necessary.

13 In the opinion of management, the value of the assets, other than fixed assets, on realization in the ordinary course of business, will not be less than the value at which they are stated in the Balance Sheet.

1. Corporate Information:

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5 July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

2. Capital Commitments:

Outstanding commitments for capital expenditure (net of advances) : t 33,750 (previous year : Nil).

3. The Company has taken premises and land for field operations on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to X 16,109,478 (previous year ? 10,917,725). Amount due within one year ? 16,270,430.

4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

5. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7. The disclosures of Employee Benefits as defined in the revised Accounting Standard - 15 are given below:

i. Change in present value of obligation:

Note: The above information is given from the report furnished by the Actuary as at the end of the year.

Note: Provision for accruing liability for Gratuity and Leave Encashment which are done on overall Company basis and not separately ascertainable and, therefore, not included above.

8. Segment Reporting as per Accounting Standard - 17:

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Related Party Disclosures as per Accounting Standard - 18:

(a) Related Parties and their relationships

(i) Key Management Personnel

- Mr. Rohit Kapur, Chairman and Whole-time Director

- Dr. D.J. Corbishley, Director

(b) Transactions with the above party in the ordinary course of business: -

10. Minimum Alternate Tax (MAT) :

The Company is entitled to avail Credit under Section 115 JA (1A). Accordingly, MAT credit entitlement has been considered as an asset to the extent there is convincing evidence that the Company will pay normal income tax during specified period under law.

11. Remittance in Foreign Currency to Non-residents on account of dividends: NIL

(Dividend are paid in local currency to the mandated banks)

12. Previous year figures have been regrouped wherever necessary to correspond with the current year figures

b) Rights, preferences and restrictions attaching to equity shares :

The Company has issued only one class of equity shares having par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the five years preceding immediately before the reporting date :

1.. Corporate Information :

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5 July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

2. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances) : Rs. Nil (previous year : Rs. 1,080,931).

3.. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to Rs. 10,917,725 (previous year Rs. 8,482,208). Amount due within one year Rs. 11,289,520.

4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

5.. The Company has not received any information from suppliers or service providers, whether they are covered under the “Micro, Small and Medium Enterprises (Development) Act, 2006”. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6.. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7.. The disclosures of Employee Benefits as defined in the revised Accounting Standard - 15 are given below :

8. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Related party Disclosures as per Acccounting Standard - 18:

(a) Related Parties and their relationships

(i) Key Management Personnel

- Mr. Rohit Kapur, Chairman and Whole-time Director

(b) Transactions with the above party in the ordinary course of business: -

10. Minimum Alternate Tax (MAT) :

The Company is entitled to avail Credit under Section 115 JA (1A). Accordingly, MAT credit entitlement has been considered as an asset to the extent there is convincing evidence that the Company will pay normal income tax during specified period under law.

11. Remittance in foreign Currency to Non-residents on account of dividends : NIL

12. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

1. Rights, preferences and restrictions attaching to equity shares :

The Company has issued only one class of equity shares having par value of R 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

2. Corporate Information :

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5th July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

3. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances) - Rs. 1,080,931 (previous year Rs. 6,202,065)

4. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to Rs. 8,482,208 (previous year Rs. 6,095,458). Amount due within one year Rs. 10,233,301.

5. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon'ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

6. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006". Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

7. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

8. As a result of change in the Accounting Policy no. 1.07 regarding the period of amortisation, the amortisation is lower by Rs. 157,921,010 and consequently the profit of the year before tax is higher by Rs. 139,515,010, as compared to the period previously followed. The corresponding impact on managerial remuneration is higher by Rs. 7,200,000 and provision for current tax on MAT basis is higher by Rs. 29,346,000.

9. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

10. Corporate Social Responsibility (CSR) :

The Company is required to spend a further sum of Rs. 5,047,977 towards Corporate Social Responsibility relating to the financial year 2014-15, as required under section 135 of the Companies Act, 2013. This is expected to be spent in the succeeding financial year.

11. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

1. Corporate Information :

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5 July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

2. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances) - R978,000/- (previous year R3,898,865/-)

3. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to R6,138,462/- (previous year R5,580,807/-) Amount due within one year R5,992,566/-.

4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon’ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

5. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006”. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7. The disclosures of Employee Benefits as defined in the Accounting Standard - 15 are given below :

8. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

A) Rights, preferences and restrictions attaching to equity shares :

The Company has issued only one class of equity shares having par value of R 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

Cash EPS is calculated after adding back Development of Hydrocarbon Properties written off, deferred tax and depreciation to net profit.

1. Corporate Information :

Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 05 July 1985, under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.

2. Capital Commitments :

Outstanding commitments for capital expenditure (net of advances)

- R3,898,865/- (previous year R6,910,000/-)

3. The Company has taken premises on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to R 5,580,807/- (previous year R3,324,012/-). Amount due within one year R5,600,951/-.

4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GoI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GoI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GoI had appealed to the Hon'ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GoI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.

5. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006". Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

6. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

7. The disclosures of Employee Benefits as defined in the Accounting Standard - 15 are given below :

8. Segment Reporting as per Accounting Standard - 17 :

The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.

9. Oil and Natural Gas Corporation Ltd., vide letter dated 27.01.2012 has revised retrospectively the charges relating to handling and processing of crude oil at their terminal. The revision includes charges relating to the period 2008-09 to 2010-11 aggregating to R19,698,997/-

10. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.

Not Available

1. Contingent Liabilities :

Disputed sales tax demand under appeal, not provided for - Rs. 1.53 million (previous year 1.53 million).

The future cash outflow on the above, if any, is determinable only on receipt of the decisions pending before the authorities.

2. In the Arbitration Proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GoI) with respect to the Lohar oilfield, inter-alia, the issue was whether Profit Petroleum is payable to the GoI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Arbitral Tribunal has by its Award dated 3 May 2010, declared that the Investment Multiple actually achieved has to be calculated every year to determine the share of Profit Petroleum in the preceding year, to be shared in the succeeding year. Consequently, Profit Petroleum is to be shared with the GoI only, if the Investment Multiple in the preceding year exceeds a value of 3.5. Since the Investment Multiple actually achieved by the Company at the end of the preceding year, i.e. 2009 is less than 3.5, no Profit Petroleum is payable to GoI. The amount recoverable from the Government of India up to 31.03.2010, based on the Award, is estimated at USD 1,674,002 (excluding interest).

3. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.

4. During the year, 1,230,000 shares of Rs. 10 each at a premium of Rs. 155 each were issued on conversion of warrants of Rs. 10 each and 570,000 warrants of Rs. 10 each were forfeited and the Application amount of Rs. 9,405,000 was transferred to Capital Reserve. During the year, 107,940 shares were bought back under the buyback scheme.

5. The disclosures of Employee Benefits as defined in the Accounting Standard are given below :

6. The Company has not received any intimation from "suppliers” or "service providers" regarding their status under the Micro, Small and Medium Enterprises (Development) Act, 2006, and hence, disclosure, if any, relating to amounts unpaid as at 31 March 2010 together with interest payable as required under the said Act are not as certain able.

7. Previous year figures have been regrouped wherever necessary to correspond with the current year figures.