SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation:

These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014, till the standards of accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the national Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in all material aspects with the accounting standards notified under section 211(3C) of Companies Act,1956 (Companies (Accounting Standards) Rules,2006 as amended) and other relevant provisions of the Companies Act,2013.

b) USE OF ESTIMATES:

The brparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialised

c) Fixed Assets and Debrciation :

(i) Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated debrciation. All costs, including financing cost till commencement of commercial production are capitalised/ to be capitalised.

(ii) Debrciation:

Debrciation has been provided on S.L.M Method at rates for single shift specified in Part-C of Schedule - II of the Companies Act, 2013.

d) Borrowing Costs:

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

e) Investments (Long Term):

The investments in shares are shown at cost.

f) Revenue Recognition:

All income and expenditure items having material bearing on the financial statements are recognized on accrual basis.

g) Employee Benefits :

As informed to us and explained to us there are no employees who are eligible for such benefits and hence not applicable.

Further the leave accrued has to be encashed within the calendar year and hence there is no accrued leave to be provided for.

h) Foreign Exchange Transactions :

This accounting standard is not applicable

i) Amortization of Miscellaneous Expenditure:

Preliminary expenses and Pre-operative expenses has not been amortized.

 j) Deferred Tax :

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are not recognized since there is negligible effect using the tax rates that have been enacted or substantially enacted by the balance sheet date as per the Accounting Standard - 22.

k) Prior Period Adjustment :

Expense and income pertaining to earlier/brvious year are accounted as prior period item.

l) Earning Per Share:

Disclosure is made in the Profit and Loss Account as per the requirements of the standard.

m) Consolidated financial statements

Consolidated financial statements of the Company and its subsidiaries are enclosed.

n) Provisions and Contingent Liabilities :

A provision is recognized when the company has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. A contingent liability is disclosed when the company has a possible or brsent obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed in the Financial Statements.

o) Impairment of assets:

Impairment loss is charged to the Profit and Loss Account in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

II. ADDITIONAL NOTES (Forming an integral part of Accounts)

1. Contingent liabilities not provided for :

Demand of Rs. 7,77,730/- for the accounting year 2011-12 raised by Income Tax Authorities, which is disputed by the Company.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for in the Accounts (net of advances) NIL

3. Sundry debtors over six months included Rs. 739.71 lacs non-performing in nature. In the opinion of the Directors, they are good and recoverable. The Directors are hopeful of getting recoveries in the next year as brsent market conditions are not favourable. However in the opinion of the Auditor, it shall be prudent to identify the same as doubtful of recovery requiring adequate provision. It has been explained that the management of the company is pursuing recoveries and actual losses, if any, shall be adjusted as and when arises.

4 In opinion of the management of the company, all loans, advances and deposits are recoverable in nature for which no provision is required. However in the opinion of the Auditor, it shall be prudent to make sufficient provision for such non performing assets amounting to Rs. 206.17 lacs which are outstanding since long.

5. During the year the company has granted loan of Rs. 5116.29 lacs to the related parties and Rs. 1269.93 lacs to other parties without charging any interest as required under the provision of Section 186 of the Companies Act, 2013. In absence of rate of interest, the amount of the income foregone on such advances could not be quantified in this regard.

6. Balances under Sundry Debtors, Sundry Creditors, Loans & Advances are subject to confirmation and reconciliation with the respective parties/ concerns. Necessary adjustment if any, thereon having an importance of revenue nature, will be made in the year of such confirmation / reconciliation

7. Segment Reporting:

The Company brdominantly operates in a single segment namely "Oil & Gas" and is primary basis for segment information which as per Accounting Standards 17 is considered as the only reportable business segment.

8. The Company has not received any information from 'Suppliers' regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

9. Previous year figures have been regrouped and/or rearranged whenever necessary.

Signature to Notes 1 to 19

FOR PANKAJ K. SHAH ASSOCIATES

Firm Registration No. 107352W

CHARTERED ACCOUNTANTS

(PANKAJ K. SHAH)

PROPRIETOR

M. No. 34603

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

SHALIN A SHAH MANAGING DIRECTOR DIN : 00297447

ASHOK C SHAH DIRECTOR DIN : 02467830

SHEETAL PANDYA COMPANY SECRETARY

PLACE : AHMEDABAD

DATE : 30.05.2015