Significant Accounting Policies

A BASIS OF brPARATION OF FINANCIAL STATEMENTS :

(i) These financial statements have been brpared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

(ii) The financial statements are brpared on accrual basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts. The financial statements are brsented in Indian rupees rounded off to the nearest rupees in lakh.

BUSE OF ESTIMATES :

The brparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised. The management believes that the estimates used in the brparation of the financial statements are prudent and reasonable.

C OWN FIXED ASSETS :

(i) Fixed Assets are stated at cost net of recoverable taxes and include amounts added on revaluation, less accumulated debrciation and impairment loss, if any. All costs including financing costs, up to the date of commissioning and attributable to the fixed assets are capitalised.

(ii) Compensation paid to various land owners / occupiers for acquisition of Right of User in the lands along with the pipeline route under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Lands) Act, 1962, up to the date of commissioning, has been included in Plant and Machinery.

(iii) Intangible assets are stated at cost of acquisition, less accumulated amortisation.

DLEASED ASSETS :

In respect of fixed assets given on finance lease, assets are shown as receivable at an amount equal to net investment in the lease. Initial direct costs are recognised immediately as expense in the Statement of Profit and Loss. Income from leased assets is accounted by applying the interest rate implicit in the lease to the net investment.

E DEbrCIATION AND AMORTISATION :

Debrciation on Fixed Assets is provided based on useful life of the assets brscribed in Schedule II to the Companies Act, 2013, except that:

(i) the cost of Leasehold Land is amortized over the period of lease.

(ii) cost of Pipeline Corridor Structure is amortized over the residual life of the asset.

(iii) Intangible assets comprising of Software are amortised over the period of 5 to 10 years.

FIMPAIRMENT OF ASSETS :

The Company assesses at each reporting date as to whether there is any indication that an asset (tangible and intangible) may be impaired. An asset is treated as impaired, when the carrying cost of the asset exceeds its recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use. Value in use is the brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

G FOREIGN CURRENCY TRANSACTIONS :

(i) Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction.

(ii) Monetary items denominated in foreign currencies, if any at the year end are restated at year end rates.

(iii) Non monetary foreign currency items are carried at cost.

(iv) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

H INVESTMENTS :

Current Investments are carried at the lower of cost or quoted / fair value, computed category-wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary. Investments that are readily realizable and intended to be held for not more than 12 months from the date of acquisition are classified as current investment. All other investments are classified as non-current investments.

I INVENTORIES :

Inventories are measured at lower of cost or net realisable value. Cost is determined on weighted average basis.

J REVENUE RECOGNITION :

Revenue is recognised only when it can be reliably measured and it is resonable to expect ultimate collection. Revenue from services are recognised when services have been rendered and no significant uncertainty to collectability exits. Revenue from operations includes sale of services, service tax, adjusted for discounts (net).Revenue from Service Contracts are recoginised when related services are performs and are due as per the terms of contract.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

K EMPLOYEE BENEFITS :

(i) Short term employee benefits The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

(ii) Post-employment benefits:

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Company’s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

Defined benefit plans

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected Unit Credit Method and sbrad over the period during which the benefit is expected to be derived from employees’ services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Statement of Profit and Loss.

L BORROWING COST :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

M INCOME TAXES :

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed debrciation or losses, are recognised if there is irtual certainty that sufficient future taxable income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

N PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in notes. Contingent Assets are neither recognised nor disclosed in the financial statements

1. Income tax assessments of the Company have been completed up to Assessment Year 2012 - 13. There is no disputed demand outstanding up to the said Assessment Year.

2. Estimated amount of contracts remaining to be executed on capital account is Nil (Previous Year ` 52.14 lakh) and not provided for (net of advances).

3 Details of Loans given, Investments made, Guarantees given and Securities provided during the year covered under Section 186(4) of the Companies Act, 2013:

i) Loans given ` Nil (Previous Year ` Nil)

ii) Investment made ` Nil (Previous Year ` Nil)

iii) Guarantees given and Securities provided by the Company in respect of loan ` Nil (Previous Year ` Nil)

As per our Report of even date

For Chaturvedi & Shah  

Chartered Accountants  

Amit Chaturvedi  

Partner

For and on behalf of the board

Mahesh K. Kamdar

Chairman

Chandra Raj Mehta Directors

Sandeep H. Junnarkar Directors

S. C. Malhotra Directors

Bhama Krishnamurthy Directors

Dilip V. Dherai Executive Director

Sridhar Kothandaraman Company Secretary

Tapas Mitra Chief Financial Officer

Date: 12th April, 2016  

Place : Mumbai