Notes to Accounts of Gujarat Natural Resources Ltd.

Mar 31, 2025

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost
of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalization

• Taxation

Tax on Income comprises current and deferred tax. It is recognized in statement of profit and loss except to the extent
that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

• Current tax

Tax on income for the current period is determined on the basis on estimated taxable income and tax credits computed
in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments /
appeals. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

• Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary
difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not
recognized if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting year and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

• Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic earnings per share is
computed by dividing the profit or loss after tax by the weighted average number of equity shares outstanding during
the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares,
bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of
shares).

Diluted earnings per share is computed by dividing the profit/(loss) after tax as adjusted for dividend, interest and other
charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic earnings per share and the weighted average
number of equity shares which could have been issued on the conversion of all dilutive potential equity shares including
the treasury shares held by the Company to satisfy the exercise of the share options by the employees

Further, the Company entered into Supplemental Agreement with GNRL Oil & Gas Limited and GNRL Oil and Gas (I) Private
Limited on 20^th March, 2025 pursuant to which GOGL agrees to share revenue from business operations with GNRL, up to a
maximum of Rs. 2 Crore annually. This revenue will be paid quarterly to GNRL until the approval from the Government of
India for transfer of Portion of Participating Interest is obtained.

The Company shall be entitled to receive the revenue, based on the funds already provided by GNRL to GOGL through GOGIL
for its business operations by way of loan.

> Capital Management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns
while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital
structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the
Company.

Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial instruments
that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs
used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the
accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical
assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by
the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets
in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and
transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank
balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-term
nature. Difference between carrying amount of Bank deposits, other financial assets, borrowings and other financial
liabilities subsequently measured at amortized cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

> Financial risk management

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The board has established the Audit Committee, which is responsible for developing and
monitoring the Company''s risk management policies. The Committee holds regular meetings and report to board on its
activities. The Company''s risk management policies are established to identify and analyses the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The
Company, through it straining and management standards and procedures, aims to maintain a disciplined and
constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies
and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular
and adhoc views of risk management controls and procedures, the results of which are reported to the audit
committee.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counter party to a financial instrument fails to
meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue,
investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk
is equal to the carrying value of the financial assets. The objective of managing counter party credit risk is to prevent
losses in financial assets.

Trade Receivables

Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on
an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent
rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience
and other factors

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing
liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under
both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s
reputation.

Liquidity Table

The Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities
based on the earliest date on which the Company can be required to pay. The tables include both interest and principal
cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Price Risk Exposure

The Company''s exposure to securities price risk arises from investments held in mutual funds and classified in the
balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the Company
diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on account of
interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses. Profit for the year
would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.

> Others

- As informed by the management that the loans are interest free, which in our opinion is violation of Section 186 (7) of
the Companies Act, 2013.

- Confirmation of the concerned parties for the amount due to them and/or due from them as per accounts of the
company is not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance
of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to
confirmation.

- In the opinion of board of directors the value of loans and advances and other current assets have a value on realization
in the ordinary course of business at least equal to the amount at which they are stated in balance sheet.

- There is carry forward of losses, the company need not to recognize deferred tax assets in the event of non-availability
of convincing evidence as to future income.

- The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts
and other disclosures for the preceding year are included as an integral part of the current year financial statements
and are to be read in relation to the amounts and other disclosures relating to the current year.

For, Gujarat Natural Resources Limited For, G M C A & Co.

Chartered Accountants
FRN: 109850W

Shalin A. Shah Ashok C. Shah Hitesh Donga Barkha Lakhani

Managing Director Director CFO Company Secretary

DIN : 00297447 DIN : 02467830

CA. Amin G. Shaikh

(Partner)

Place : Ahmedabad Membership No. 108894

Date : 29.05.2025 UDIN: 25108894BMKOSZ2629

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Mar 31, 2024

Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and

transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-term nature. Difference between carrying amount of Bank deposits, other financial assets, borrowings and other financial liabilities subsequently measured at amortized cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

> Financial risk management

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board has established the Audit Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee holds regular meetings and report to board on its activities. The Company''s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through it straining and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc views of risk management controls and procedures, the results of which are reported to the audit committee.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counter party to a financial instrument fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counter party credit risk is to prevent losses in financial assets.

Trade Receivables

Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Liquidity Table

The Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Price Risk Exposure

The Company''s exposure to securities price risk arises from investments held in mutual funds and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the Company diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on account of interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses. Profit for the year would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.

> Others

- As informed by the management that the loans are interest free, which in our opinion is violation of Section 186 (7) of the Companies Act, 2013.

- Confirmation of the concerned parties for the amount due to them and/or due from them as per accounts of the company is not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to confirmation.

- In the opinion of board of directors the value of loans and advances and other current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in balance sheet.

- There is carry forward of losses, the company need not to recognize deferred tax assets in the event of non-availability of convincing evidence as to future income.

- The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2018

1. Notes on Accounts

- Contingent Liabilities

Penalty of 92,500/- for the accounting year 2009-10 raised by Income Tax Authorities, which is disputed by the Company.

- Capital Expenditure Commitments: Nil

- Earnings per Share:-

The earning considered in ascertaining the company''s EPS comprises the profit available for shareholders i.e. profit after tax and statutory/regulatory appropriations. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year as per the guidelines of IndAS-33.

Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short term nature. Difference between carrying amount of Bank deposits, other financial assets, borrowings and other financial liabilities subsequently measured at amortized cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

- Financial risk management

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board has established the Audit Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee holds regular meetings and report to board on its activities. The Company''s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hocreviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.

Trade Receivables

Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Liquidity Table

The Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Price Risk Exposure

The Company''s exposure to securities price risk arises from investments held in mutual funds and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the Company diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on account of interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses. Profit for the year would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.

- Reconciliation between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Notes to reconciliation between Indian GAAP and Ind AS

(i) Revenue Recognition

Under Indian GAAP revenue is disclosed net of excise duty. However under Ind AS revenue is disclosed including excise duty.

(ii) Amortisation of processing charges

Under Indian GAAP ancillary cost of borrowing is recognised as expense or capitalized ( in case of qualifying asset) in the year in which it is incured. Under Ind AS the ancillary cost of borrowing is expensed or capitalised at effective interest rate over the period of loan.

- Others

- Scheme of Arrangement: In opinion of the management of the company, all loans, advances and deposits are recoverable in cash or kind for value to be received for which no provision is required. However in the opinion of the auditors, it shall be prudent to make sufficient provision for such non-performing assets amounting to Rs. 206.17 Lacs.

- 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 present 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.

- As per the order of Hon''ble Gujarat High court (on Demerger) dated 30/12/2009, The Office Premises needed to be transferred to Demerger Account at that time. During the year Remaining Balance of Office Premises (Fixed Assets) has been transferred to Miscellaneous Expenses (Other Noncurrent Assets).

- As informed by the management that the loans are interest free, which in our opinion is violation of Section 186 (7) of the Companies Act, 2013.

- Confirmation of the concerned parties for the amount due to them and/or due from them as per accounts of the company is not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to confirmation.

- In the opinion of board of directors the value of loans and advances and other current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in balance sheet.

- There is carry forward of losses, the company need not to recognize deferred tax assets in the event of non-availability of convincing evidence as to future income.

- The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2016

1. There is no movement of the shares outstanding at the beginning and at the end of the reporting period.

2. The company has issued only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

3. Company has not alloted any bonus shares, Shares without consideration in cash and/or bought back any equity shares during the priod of five years immediately preceding the Balance sheet date.

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

4. Contingent liabilities : NIL

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

6. 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 present 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.

7 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 being Deposit of Rs. 57.97 lacs, Capital Advances of Rs. 8.75 lacs and other loans and advances of Rs. 139.45 lacs aggregating to Rs. 206.17 lacs which are outstanding since long.

8. The company has granted loan of Rs. 4082.53 lacs to subsidiary company and Rs. 1716.77 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.

9. In the opinion of the Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and provision for all known and determined liabilities (except wherever otherwise stated)are adequate and not in excess of the amount reasonably necessary.

10. 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.

11. Segment Reporting:

The Company predominantly 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.

12. Earning per share (EPS) :

The earnings considered in ascertaining the Company''s EPS comprises of the net profit after tax (and includes the post tax effect of any extra ordinary item).

Related party relationship is as identified by the management and relied upon by the auditors.

13. Earning & Expenditure in Foreign Exchange : NIL

14. 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.

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

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Mar 31, 2015

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 present 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. In the opinion of the Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and provision for all known and determined liabilities (except wherever otherwise stated)are adequate and not in excess of the amount reasonably necessary.

7. 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.

8. Segment Reporting:

The Company predominantly 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.

9. Earning per share (EPS) :

The earnings considered in ascertaining the Company's EPS comprises of the net profit after tax (and includes the post tax effect of any extra ordinary item).

10. Earning & Expenditure in Foreign Exchange : NIL

11. 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.

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

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Mar 31, 2014

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

2. Sundry debtors over six months included Rs. 739.75 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 present 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.

3 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.

4. Particulars of Managerial Remuneration :

As fixed monthly remuneration has been paid to the Directors'' as per Schedule XIII of the Companies Act, 1956, the company has not computed net profit for the purpose of Managerial remuneration under section 349 of the Companies Act, 1956.

Managerial Remuneration paid to Managing Director is Rs. 6,00,000 /- included in salaries & wages.

c) Investments by the loanee in the shares of the parent Company and subsidiary company when the Company has made a loan or advance in the nature of loan – NIL

5. In the opinion of the Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and provision for all known and determined liabilities (except wherever otherwise stated)are adequate and not in excess of the amount reasonably necessary.

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 predominantly 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. Earning per share (EPS) :

The earnings considered in ascertaining the Company''s EPS comprises of the net profit after tax (and includes the post tax effect of any extra ordinary item). The number of shares used in computing Basis EPS is the weighted average number of shares outstanding during the year.

9. Related parties disclosure :

Related parties disclosure in accordance with Accounting Standard 18 issued by Institute of Chartered Accountants of India :

Directors of the Company : Associates Companies, Firms:

1. Ashok C. Shah 1 Lesha Industries Ltd.

2. Shalin A. Shah 2 Shree Ghantakarna Rolling Mills P.Ltd

3. Hariyant C. Shelat 3.SRPL Developers Pvt. Ltd.

4. Ilesh Shah 4.Lesha Agro Food Pvt. Ltd.

5. Malav Mehta Relative of Directors:

6. Pravinbhai Trivedi 1.Leena A. Shah

Subsidiary Company :

1. Sigma Oil & Gas Pvt. Ltd.

2. Gorlas Corporate Holding Ltd

3. GNRL Oil & Gas Ltd. (Formerly known as Heramec Ltd.)

4. Heramec Oil & Gas (Singapore) Pte Ltd

5. Alkor Petro Overseas Ltd

Related party relationship is as identified by the management and relied upon by the auditors.

10. Earning & Expenditure in Foreign Exchange : NIL

11. 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 as per Schedule VI of the Companies Act, 1956 could not be provided.

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

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Mar 31, 2013

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

2. Sundry debtors over six months included Rs. 519.71 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 present market conditions are not favourable. However in the opinion of the Auditors, 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.

3 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 Auditors, it shall be prudent to make sufficient provision for such non performing assets amounting to Rs. 168.65 lacs which are outstanding since long.

4. Particulars of Managerial Remuneration :

As fixed monthly remuneration has been paid to the Directors'' as per Schedule XIII of the Companies Act, 1956, the company has not computed net profit for the purpose of Managerial remuneration under section 349 of the Companies Act, 1956.

Managerial Remuneration paid to Managing Director is Rs. 6,00,000/- included in salaries & wages.

5. In the opinion of the Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and provision for all known and determined liabilities (except wherever otherwise stated)are adequate and not in excess of the amount reasonably necessary.

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 predominantly 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. Earning per share (EPS) :

The earnings considered in ascertaining the Company''s EPS comprises of the net profit after tax (and includes the post tax effect of any extra ordinary item). The number of shares used in computing Basis EPS is the weighted average number of shares outstanding during the year.

9. Earning & Expenditure in Foreign Exchange : NIL

10. The Company has not received any information from ''Suppliers'' regarding their status under the Micro, Smalt and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of the Companies Act, 1956 could not be provided.

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

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Mar 31, 2012

1. There is no movement of the shares outstanding at the beginning and at the end of the reporting period.

2. The company has issued only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

3. Company has not alloted any bonus shares, Shares without consideration in cash and/or bought back any equity shares during the priod of five years immediately preceeding the Balance sheet date.

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

5. Sundry debtors over six months included Rs. 519.71 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 present market conditions are not favourable. However in the opinion of the Auditors, 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.

6 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 Auditors, it shall be prudent to make sufficient provision for such non performing assets amounting to Rs. 138.65 lacs which are outstanding since long.

7. Particulars of Managerial Remuneration :

As fixed monthly remuneration has been paid to the Directors' as per Schedule XIII of the Companies Act, 1956, the company has not computed net profit for the purpose of Managerial remuneration under section 349 of the Companies Act, 1956.

Managerial Remuneration paid to Managing Director is Rs. 6,00,000 /- included in salaries & wages.

8. In the opinion of the Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and provision for all known and determined liabilities (except wherever otherwise stated)are adequate and not in excess of the amount reasonably necessary.

9. 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.

10. Segment Reporting:

The Company predominantly 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.

11. Earning & Expenditure in Foreign Exchange : NIL

12. 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 as per Schedule VI of the Companies Act, 1956 could not be provided.

13. Previous year comparatives:

Till the year ended 31st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.

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Mar 31, 2011

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

2.Sundry debtors over six months included Rs.260.46 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 the market conditions are not favorable. However in the opinion of the Auditors, 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 has been explained that the management of the company is pursuing recoveries and actual losses, if any, shall be adjusted as and when arises.

3. 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 Auditors, If shall be prudent to make sufficient provision for such non performing assets amounting to Rs.136.65 lacs which are outstanding since long.

4. Particulars of Managerial Remuneration:

As fixed monthly remuneration has been paid to the Directors as per Schedule XIII of the Companies Act. 1956,the computed net profit for the purpose of Managerial remuneration under section 349 of the Companies Act,1956.

Managerial Remuneration paid to Managing Director is Rs.6,00,000/- included in salaries & wages.

5. Amount Paid/Payable to Auditors:

6. Disclosure made in terms of Clause 32 of the Listing Agreement with Stock Exchanges:

7. In the opinion of the Directors, the currents assets, loans and advance are approximately of the value stated, if realized in the ordinary course of business and provision for all known and determined liabilities (except wherever otherwise stated) are adequate and not in excess of the amount reasonably necessary.

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

9. Loans & Advance includes:

10. Segment Reporting:

The Company predominantly 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.

11.Earning per shares(EPS):

12.Related parties disclosure:

b) Transactions that have place during the period April 1.2010 to March 31.2011 with related parties by the company.

Related party relationship is as identified by the management and relied upon the auditors.

13. Additional information pursuant to the paragraph 3,4C and 4D of part-ii of Schedule Vi of the Companies Act, 1956. Since the Company deals in Commodity traded through MCX, such details cannot be given.

14. Expenditure in Foreign Exchange: Rs.80,000/- for Foreign Travelling

15. Earning in Foreign Exchange : NIL 17. The Company has not received any information from 'Supplier' regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule Vi of the Companies Act. 1956 could not be provided.

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Mar 31, 2010

1. The scheme ofArrangement under Section 391 to 394 ofthe Companies Act, 1956 (the scheme) to transfer Steel Division on a going concern basis to its M/s. Lesha Industries Limited w.e.f. 1st April, 2009, the appointed date has become effective on 4th February, 2010, on getting requisite approvals and completion of necessary formalities.

In terms ofthe Scheme, the shareholders ofthe Company will receive 1 (one) equity share of M/s. Lesha Industries Limited of the face value of Rs. 10/- each, credited as fully paid up for every 2 (two) fully paid up equity share of the Company held on 26th February, 2010, the record date to be fixed for the purpose.

Consequent to vesting of the Steel Division of the Company in terms of the Scheme, the financial statements of the company for the year ended 31st March, 2010, do not include the operations of the Steel Division for the period of twelve months from 1st April, 2009 to 31st March, 2010, and are therefore strictly not comparable with the figure of the previous year ended 31st March, 2009.

2. Previous years figures have been regrouped and rearranged wherever necessary to make them comparable with the current years figures.

3. The Company is yet to receive Rs. 80215/- from some of the collecting bankers which have been debited to public issue money recovery account in the books of account.

4 a) Wherever the vouchers / bills etc. have not been adequately supported or are missing, the Management has certified that the transactions under question are genuine transactions. The Auditors have accepted such certification of the management.

b) In the opinion of the Directors, Current Assets, Loans and Advances are approximately of the value if realised in the ordinary course of business and all known liabilities have been fully provided for unless otherwise specified in this Schedule

c) In the opinion of the Directors, no personal expenses have been debited in the books of account.

5. Segment Accounting:

The Company now predominantly 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.

6. Deferred Tax:

In accordance with accounting standard 22 "Accounting for taxes on income" issued by the institute of chartered accountants of India, which has become mandatory from 1st April, 2001.

Since, the company has carried forward unabsorbed depreciation of negligible amount And current year difference of depreciation between income tax method and company Law method, being also negligible, deferred tax assets as on 31st March2010 has not been recognized.

7. Related parties disclosure:

Related parties disclosure in accordance with Accounting Standard 18 issued by Institute of Chartered Accountants of India:

a) Related parties and nature of relationship:

Directors of the Company: Associates Companies, Firms Relatives of directors:

1. Ashok C. Shah 1. Lesha Industries Ltd.

2. ShalinA.Shah 2. ShreeGhantakama Rolling Mills P. Ltd

3. Pravin P. Shah upto 12.11.2009

4. HariyantC.Shelat

5. Ilesh Shah w.e.f. 23.01.2010

6. Malav Mehta w.e.f. 23.01.2010

7. PravinbhaiTrivedi w.e.f. 23.01.2010

Subsidiary Company:

1. Sigma Oil & Gas Pvt. Ltd.

2. Gorias Corporate Holding Ltd

3. HeramecLtd

4. Heramec Oil & Gas (Singapore) Pte Ltd

5. AlkorPetro Overseas Ltd

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Mar 31, 2009

1 Previous years figures have been regrouped and rearranged wherever necessary to make them comparable with the current years figures.

2 The Company is yet to receive Rs. 80215/- from some of the collecting bankers which have been debited to public issue money recovery account in the books of account.

3 a) Wherever the vouchers / bills etc. have not been adequately supported or are missing, the Management has certified that the transactions under question are genuine transactions. The Auditors have accepted such certification.of the management.

b) In the opinion of the Directors, Current Assets, Loans and Advances are approximately of the : value if realised in the ordinary course of business and all known liabilities have been fully provided forunless otherwise specified in this Schedule

c) In the opinion of the Directors, no personal expenses have been debited in the books of account.

4. Segment Accounting :

(a) Primary Segment :

The Company now predominantly operates in a single segment namely "Oil & Gas" and is primary basis for segment information. However the company was operating till January, 08 in Steel segment. Pursuant to change of main object clause in EGM the Company operates in a single segment of Oil & Gas, business. However the identified reportable segment is steel trading & Oil & Gas operations during the year.

5. Deferred Tax:

In accordance with accounting standard 22 " Accounting for taxes on income" issued by the institute of chartered accountants of India, which has become mandatory from 1sApril,2001.

Since, the company has carried forward unabsorbed depreciation of negligible amount And current year difference of depreciation between income tax method and company Law method, being also negligible, deferred tax assets as on 31sl March 2009 has not been recognized.

6. Related parties and disclosure:

Related parties disclosure in accordance with Accounting Standard 18 issued by Institute of Chartered Accountants of India:

a) Related parties and nature of relationship:

Directors of the Company: Associates Companies, Firms Relatives of directors:

1. AshokC. Shah 1.Techno corp lnfosystems Ltd.

2. ShalinA. Shah 2. Shree Ghantakarna Rolling Mills P. Ltd

3. Pravin P. Shah

4. Hariyant C. Shelat