Notes to Accounts of Jindal Drilling & Industries Ltd.

Mar 31, 2025

p) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are
material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent,
and disclosed by way of notes to the accounts.

Contingent Assets are neither recognized nor disclosed in the financial statement. Provisions, Contingent Liabilities
and Contingent Assets are reviewed at each Balance Sheet date.

q) Employee Benefits

Short Term Employee Benefits

Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of
profit and loss of the year in which the related service is rendered.

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
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. Payment to defined contribution retirement
benefit scheme, if any, is charged as expenses as they fall due.

Defined Benefit Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at
the time of resignation/superannuation. The gratuity is paid @ 15 days salary for every completed year of service
as per the Payment of Gratuity Act 1972. The gratuity liability amount is contributed to the approved scheme of LIC
formed exclusively for gratuity payment to the employees. The gratuity fund has been approved by respective IT
authorities.

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

Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive
Income.

r) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. For the purpose
of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of equity shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

s) Claims Recoverable

The claims in respect of fixed assets lost during the process of drilling (lost in hole) are recognised on the basis
of invoices raised and correspondingly the depreciated value of the fixed assets lost in hole is charged off. Any
deductions made from the claims raised are recognised on receipt of intimation in respect of the same.

t) Prepaid Expenses

Prepaid expense is not recognised in cases where total amount spent is Rs. 10,000/- or less. Such expenses are
charged to statement of profit and loss.

u) Segment reporting:

Operating segments are those components of the business whose operating results are regularly reviewed by
the chief operating decision making body in the Company to make decisions for performance assessment and
resource allocation. The reporting of segment information is the same as provided to the management for the
purpose of the performance assessment and resource allocation to the segments.

v) Statement of cash flows:

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities.
Cash flow from operating activities is reported using indirect method adjusting the net profit for the effects of:

i. changes during the period in inventories and operating receivables and payables, transactions of a non-cash
nature;

ii. non-cash items such as depreciation, provisions, and unrealised foreign currency gains and losses etc.; and

iii. all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents comprise cash at banks and on hand, short-term deposits with an original maturity
of three months or less and liquid investments, which are subject to insignificant risk of changes in value.

w) Event Occurring after the Balance Sheet Date

Events occurring after the Balance Sheet Date and till the date on which the Financial Statement are approved,
which are material in the nature and indicate the need for adjustments are considered in the financial statement.

x) Key sources of estimation uncertainty and critical accounting judgements:

In the course of applying the policies outlined in all notes under point 2 below, the Company is required to make
judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and
underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in
the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future period, if the revision affects current and future period.

Key sources of estimation uncertainty:

i) Useful lives of property, plant and equipment:

The useful lives of property, plant and equipment are reviewed at least once a year. Such lives are dependent
upon an assessment of both the technical lives of the assets, and also their likely economic lives based on vari¬
ous internal and external factors including relative efficiency, the operating conditions of the asset, anticipated
technological changes, historical trend of plant load factor, historical planned and scheduled maintenance. It
is possible that the estimates made based on existing experience are different from the actual outcomes and
could cause a material adjustment to the carrying amount of property, plant and equipment.

ii) Provisions and Contingencies:

In the normal course of business, contingent liabilities arise from litigations and claims. Potential liabilities that
are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent
liabilities. Such contingent liabilities are disclosed in the notes but are not recognized. Potential liabilities that
are remote are neither recognized nor disclosed as contingent liability. The management decides whether
the matters needs to be classified as‘ remote,'' ‘possible'' or ‘probable'' based on expert advice, past judge¬
ments, terms of the contract, regulatory provisions etc.

iii) Fair value measurements:

When the fair values of financial assets or financial liabilities recorded or disclosed in the Financial Statements
cannot be measured based on quoted prices in active markets, their fair values are measured using valuation
techniques including the Discounted Cash Flows model. The inputs to these models are taken from observ¬
able markets where possible, but where this is not feasible, a degree of judgment is required in establishing
fair values. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility.

iv) Income taxes:

Significant judgements are involved in determining the provision for income taxes, including amount expect¬
ed to be paid / recovered for uncertain tax positions. In assessing the realizability of deferred tax assets aris¬
ing from unused tax credits, the management considers convincing evidence about availability of sufficient
taxable income against which such unused tax credits can be utilized. The amount of the deferred income
tax assets considered realizable, however, could change if estimates of future taxable income changes in the
future.

v) Defined benefit plans:

The present value of defined benefit obligations are determined using actuarial valuations. An actuarial val¬
uation involves making various assumptions that may differ from actual development in the future. These
include the determination of the discount rate, future salary escalations and mortality rates etc. 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.

vi) Loss allowance assessment for a loan / guarantee given to subsidiary and a related party:

a] Assessment for loss allowance for a loan given to subsidiary involves assumptions relating to the valua¬
tion of it''s underlying business. In considering the value in use, the Management has made assumption
relating to timing of resumption of commercial operations of mining activity, mineable reserves / re¬
sources, annual production, yield, future prices of coal, renewal of mining licenses, operational margins
and discount rate. Any subsequent changes in the assumptions could materially impact the carrying
value of the assets.

b] Recoverability of loans given to and fair value of financial guarantee given on behalf of, a related party
serving as a mine development operator for lignite mine of a joint venture entity is assessed on the basis
of projected cash flows derived on the presumption that it will continue as the operator having regard
to it being selected as the preferred bidder in the fresh competitive bidding process carried out as per
the regulator''s direction, its net worth and other external and internal sources of information.

vii) Expected credit loss:

The measurement of expected credit loss on financial assets is based on the evaluation of collectability
and the management''s judgement considering external and internal sources of information. A considerable
amount of judgement is required in assessing the ultimate realization of the loans having regard to, the past
collection history of each party and ongoing dealings with these parties, and assessment of their ability to pay
the debt on designated dates

VIII) Onerous contracts

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company
from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provi¬
sion is measured at the present value of the lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract. Before a provision is established, the Company recognizes
any impairment loss on the assets associated with that contract.

Y) Standards Issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issu¬
ance of the Company''s financial statements are disclosed below. The Company will adopt this new and amended
standard, when it become effective.

i) Lack of exchangeability - Amendments to Ind AS 21

The Ministry of Corporate Affairs notified amendments to Ind AS 21 The Effects of Changes in Foreign Ex¬
change Rates to specify how an entity should assess whether a currency is exchangeable and how it should
determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure
of information that enables users of its financial statements to understand how the currency not being ex¬
changeable into the other currency affects, or is expected to affect, the entity''s financial performance, finan¬
cial position and cash flows.

The amendments are not expected to have a material impact on the Company''s financial statements.

ii) Recent Pronouncements :-

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 31 March
2025, MCA has notified Ind AS 117 Insurance Contracts and amendments to Ind AS 116 Leases, relating to sale
and leaseback transactions, applicable to the Company w.e.f. 1 April 2024. The Company has reviewed the
new pronouncements and based on its evaluation has determined that it does not applicable to the Group.

z) Rounding of amounts

All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakhs
as per the requirement of Schedule III, unless otherwise stated.

Note 2: Estimates

The presentations of standalone financial statements is in conformity with the generally accepted accounting
principles which requires estimates and assumptions to be made that affect the reportable amount of assets
and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the
reporting period. Differences between the actual results and estimates are recognised in the year in which the
results are known / materialized.

Note 30: Property, plant & equipment

The company adopted at initial and subsequent recognition of all of its property, plant and equipment at deemed
cost method. Refer note 1(b) for depreciation method used, depreciation rate and useful life of PPE. Refer note
3 for gross carrying value, accumulated depreciation value, additions, deletions, depreciation for the period and
other changes in PPE.

Property, Plant and Equipment are pledged/ hypothecated as collateral/security against the borrowings of the
company.

Note 31: Investment Property

Refer to Note 1(d) and Note 4 for method of depreciation used and carrying value of investment property. The
amounts recognised in profit or loss for investment properties is as under;

Estimation of fair value

The company is encouraged but not required to measure the fair value on the basis of a valuation done by an
independent valuer. The market for comparable properties is inactive and alternative measurements of fair value
based on discounted cash flow projections are not available. Hence the investment properties fair value taken at
its cost of acquisition as per management estimation.

Note 32: Other Intangible assets

Refer to Note 1(c) for useful lives, method of amortisation used. Refer to Note 5 for Gross carrying value, accumu¬
lated amortisation and reconciliation.

Note 33: Provisions, Commitments and Contingent liabilities / assets

(To the extent not provided for):

Note:

a] LC / Bank Guarantee issued by the banks are provided as contingent liability against the contractual / legal
performance of the company towards services being rendered to the customer. It is not predictable for the
company to estimate the timings of cash outflows in respect of above as no event occurred in the history of
the company.

b) Income Tax Status :-

From the assessment year 2006-07 to 2016-17, cases are pending before ITAT and for assessment year 2017-18
to 2019-20, 2021-22 and 2022-23 appeals are pending before CIT (Appeals). It is not predictable for the com¬
pany to estimate the timings of cash outflows in respect of above as it is determinable only on receipt of
judgement / decisions pending with various forums / authorities. The year wise demands details are as under;

Defined Benefit Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at
the time of resignation/superannuation. The gratuity is paid @ 15 days salary for every completed year of service
as per the Payment of Gratuity Act 1972. The gratuity liability amount is contributed to the approved scheme of LIC
formed exclusively for gratuity payment to the employees. The gratuity fund has been approved by respective IT
authorities.

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company
is exposed to various risks as follow -

A) Salary Increases - Actual salary increases will increase the Plan''s liability. Increase in salary increase rate
assumption in future valuations 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 valuations can increase the plan''s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valu¬
ation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of
withdrawal rates at subsequent valuations can impact Plan''s liability.

Foreign Currency Forward Contracts

The Company is having long term chartered hire income contract with ONGC. Since the service contract is under
international competitive bidding. The company receives revenue in USD. The company has hedged future re¬
ceivables by selling USD under the forward contracts.

The foreign currency forward contracts are designated as cash flow hedges and are entered into for periods
consistent with foreign currency exposure of the underlying transactions, generally within one year.

Outstanding notional amount for forward contracts is 230 Lakhs USD (Previous year 220 Lakhs USD ). The gain/(loss)
due to fluctuation in foreign currency exchange rates on derivative contract, recognized as Other Comprehensive
Income of Rs. 23.40 Lakhs (Previous year Income of Rs.383.64 Lakhs ).

Note 39 (A) : Trade Receivable, Loans & Advances & Trade Payable

[i] Trade Recoverable includes a sum of USD 14.77 Million (in Indian Rs. 6632.81 lakhs restated till 31.03.2011], which
is outstanding from ONGC Ltd for more than 7 Years. Since there has been no realization in this account, the
outstanding amount of USD has not been restated after 31.03.2011.

JDIL had a dispute with ONGC Ltd and this dispute was under litigation for last more than 15 years. In view of
Hon''ble Supreme Court of India order dated 27th April 2022, New Arbitration Tribunal [ Tribunal] was con¬
stituted to decide dispute of subsisting between JDIL and ONGC. Hon''ble Tribunal has pronounced the final
order on 03-04-2025. As per this order JDIL, respondent No2 has been ordered to be deleted from the array
of parties.

In view of the above said Award receivables of Rs 6632.81 lakhs, appearing in financial statements will be
adjusted against other financial liabilities and balance of Rs 10042.77 lakhs, shall be transferred to profit & loss
account. Meanwhile JDIL will take steps to get release the bank guarantee given for an amount of Rs. 166.25
crore already deposited by ONGC with JDIL, In terms of order dated 27th April 2022 of the Hon''ble Supreme
Court. Now in view of the order of Hon''ble tribunal order dated 3rd April 2025, JDIL will take financial impact
arising from this order in the next financial year. Meanwhile JDIL would be able to get the bank guarantee
released.

[ii] The Loan and advance includes '' 891.44 Lakhs relate to Marine Oil Gas Private Limited [MOGL] in respect of
which no realisation could be made. No interest income has been recognised since financial year 2011-12. The
Company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon''ble Delhi High

Court in September 2013 against this company along with related persons and Ex-Managing Director of the
company. However in view of Ind As 113, the company has made a provision of full amount of Rs.891.44 Lakhs
in Financial Year 2020-21 under expected credit loss on MOGL loan.

(iii) Loans & Advances includes an interest free loan of Rs.518.00 Lakhs (Previous year Rs.518.00 Lakhs), paid to
Jindal Drilling & Industries Limited Employee Welfare Trust, which had been formed with the sole objective of
employee''s welfare. The management is considering the same as good and fully recoverable.

Notes 39(B) Refurbishment Expenses Treatment

a) The company has entered into a lease contract for the unfurnished Jack up Rig - Jindal Star, effective from July
10th,2023, with a contract period of three years. The total refurbishment costs incurred amount to Rs. 111,32.68
lakhs, which includes Rs.3,708.31 lakhs carried forward from the 2022-2023 financial year and Rs.5,914.32 lakhs
spent in financial year 2023-24 and Rs.1,510.04 lakhs spent during the current year. These refurbishment ex¬
penses are to be amortized over the contract period. For the current year, Rs. 3,538.94 and Previous Year
Rs.2,138.91 lakhs have been charged to drilling operation expenses, while the remaining Rs.5,454.83 lakhs have
been classified partly under other non-current assets and partly under other current assets.

b) The company has incurred a total of Rs.9,041.62 lakhs on the refurbishment of the Jack up Rig - Discovery-1.This
amount includes Rs.3,767.34 lakhs brought forward from the financial year (2022-2023) and Rs.4,445.71 lakhs
spent in financial year 2023-24 and Rs. 828.57 lakhs spent during the current year. The refurbishment expenses
are to be amortized over a three-year contract period starting from May 23rd, 2023. During the current year,
Rs.2,970.51 lakhs and Previous year Rs.2,223.40 lakhs have been charged under drilling operation expenses.
The remaining Rs.3,847.71 lakhs have been classified partly under other non-current assets and partly under
other current assets.

c) The company has entered into a lease agreement for the unfurnished Jack up Rig - Virtue-1, effective Oc¬
tober 27th, 2023, with a contract period of three years. The total refurbishment costs amount to Rs.10,500.02
lakhs, which includes Rs.215.64 lakhs carried forward from the financial year (2022-2023) and Rs.8,328.37 lakhs
incurred in financial year 2023-24 and spent Rs. 1,956.01 during the current year. These refurbishment expenses
will be amortized over the contract period. For the current year, Rs. 3,139.44 and previous year Rs. 1,216.12 lakhs
have been charged to drilling operation expenses, while the remaining Rs. 6,144.47 lakhs have been classified
partly under other non-current assets and partly under other current assets.

Notes 39(C) Refurbishment on owned Rig - Treatment in Accounts

The company has incurred a total of Rs. 17,237.67 lakhs on the refurbishment of owned Rig, namely Jindal
Supreme. This cost incurred on account of refurbishment expenses has been capitalised in accordance with
Ind-AS -16 of jack-up Rig Jindal Supreme and this capitalised component of amount has been depreciated
over the contract period starting from 15th October 2024.Therefore, depreciation has been increased to Rs.
2517.18 lakhs and the same has decreased in operating expenses.

The primary objective of the Company''s capital management is to ensure availability of funds at competitive cost
for its operational and development needs and maintain a strong credit rating and healthy capital ratios in order
to support its business and maximize shareholder value.

The Company manages its capital structure and makes changes in view of changing economic conditions. No
changes were made in the objectives, policies or process during the year ended 31.03.2025 and 31.03.2024. There
have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported
period.

The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of Company''s capital
management, equity includes paid up equity share capital and reserves and surplus and effective portion of cash
flow hedge and Debt comprises of long term borrowings including current maturities of these borrowings.

Fair Value Techniques:

The fair value of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values:

a) . Fair value of cash and short term deposits, trade receivables, trade payables, non-current loans, other current

financial assets, short term borrowings and other current financial liabilities approximate to their carrying
amount largely due to the short term maturities of these instruments.

b) Long term fixed rate and variable rate receivables / borrowings are evaluated by the Company based on
parameters such as interest rate, specific country risk factors, credit risk and other risk characteristics. Fair value
of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowings fair
value is determined by using Discounted Cash Flow (DCF) method using discount rate that reflects the issuer''s
borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation.

c) The fair value of derivatives are estimated by using pricing models, where the inputs to those models are
based on readily observable market parameters basis contractual terms, period to maturity and market pa¬
rameters such as interest rates, foreign exchange rates and volatility. These models do not contain a high level
of subjectivity as the valuation techniques used do not require significant judgement and inputs thereto are
readily observable from actively quoted market prices. Management has evaluated the credit and non-per¬
formance risks associated with its derivatives counterparties and believe them to be significant and warrant¬
ing a credit adjustment.

Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities grouped into
Level 1 to Level 3 as described below:

Quoted prices / published Net Asset Value (NAV) in an active markets (Level 1): This level of hierarchy includes
financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets
or liabilities and financial instruments like mutual funds for which NAV is published by mutual funds. This category
consist mutual fund investments and equity share instrument of other companies / JV''s.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities,
measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets
and liabilities measured using inputs that are not based on observable market data (that is, unobservable inputs).
Fair values are determined in whole or in part, using a valuation model based on assumption that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on
available market data.

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities grouped into
Level 1 to Level 3 as described below:

Assets and Liabilities Measured at Fair Value (Accounted)

During the year ended 31.03.2025 and 31.03.2024, 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. There is no transaction/balance
under level 3.

The fair values of the financial assets and financial liabilities included in the level 2 categories above have been
determined in accordance with generally accepted pricing models based on a discounted cash flow analysis,

The company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects
on the financial performance of the company, derivative financial instruments, such as foreign exchange forward
contracts are entered to hedge certain foreign currency risk exposures to hedge variable interest rate exposures.
Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains
the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge
accounting in the financial statements.

The company''s risk management is carried out by a treasury department under policies approved by the board of
directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the company''s
operating units. The board provides written principles for overall risk management, as well as policies covering specific
areas, such as foreign exchange risk and credit risk, use of derivative financial instruments and non-derivative financial
instruments, and investment of excess liquidity.

Credit risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instruments or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its cash and cash equivalents, loans, investments
at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including
outstanding receivables.

Credit Risk Management

Credit risk for banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the company assesses and manages credit risk based on internal credit rating system. The
finance function consists of a team who assess and maintain an internal credit rating system. The company assigns the

Liquidity risk

Liquidity risk is the risk that the company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses.

The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers
the maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and
projected cash flows from operations. The Company''s objective is to maintain a balance between continuity
of funding and flexibility through the use of working capital loans, letter of credit facility, bank loans and credit
purchases.

The bank cash credit facilities may be drawn at any time and may be terminated by the bank without notice. The
corporate loan facilities may be drawn at any time in INR and have an average maturity of 2 years.

Maturity profile of financial liabilities

The tables below analyse the company''s financial liabilities into relevant maturity groupings based on their con¬
tractual maturities for all non-derivative and derivative financial liabilities, if any.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 1 to 5 year
and more equal their carrying balances as the impact of discounting is not significant.

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises two types of risk: currency rate risk and interest rate risk. Financial
instruments affected by market risk include loans and borrowings, deposits, investments and derivatives financial
instruments. Foreign currency risk is the risk that the fair value or future cash flows of financial instrument will fluctu¬
ate because of changes in foreign exchange rates. 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. This is based on the financial
assets and liabilities held as at 31.03.2025 and 31.03.2024.

Foreign currency risk exposure

The company exposure to foreign currency risk at the end of the reporting period expressed in INR, are as
follows;

The sensitivity analyses exclude the impact of movement in market variables on the carrying value of post-em¬
ployment benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant
statement of profit and loss item is the effect of the assumed changes in respective market rates. The company''s
activities expose it to a variety of financial risk including the effect of changes in foreign currency exchange rates
and interest rates. The company uses derivatives financial instruments such as foreign exchange forward contracts
of varying maturity depending upon the underlying contract and risk management strategy to manage its expo¬
sures to foreign exchange fluctuation and interest rates.

Note 46: Operating leases

The Company has taken office premises on cancellable lease. These are cancellable and are renewable by mutual
consent on mutually agreed terms.

Note 47: Rounding off

Figures less than 500 have been shown at actuals wherever statutorily required to be disclosed, as the figures have
been rounded off to the nearest Lakhs.

Note 48: Collaterals

Inventory, Trade Receivables, Other Financial Assets, Property, Plant and Equipment are pledged/ hypothecated
as collateral/security against the borrowings of the company. (Please refer Note No. 18(1) & 20).

**The Company has transferred the unspent amount of Rs.182.13 lakhs previous year (Rs. 84.72 lakhs] in CSR unspent
accounts on 30th Apr 2025 in the State Bank of India for ongoing projects as per section 135(6].

Note 51: Miscellaneous

i] Dues to micro and small enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED] which came into force from
2nd October 2006, as amended on 1st June,2020, certain disclosures are required to be made relating to Micro,
Small and Medium enterprises. On the basis of the information and records available with the management,
the company owes 59.77 Lakhs (Previous Year 31.13 Lakhs] to Micro, Small and Medium Enterprises. However,
no interest during the year has been paid. in respect thereof but the amount of Rs NIL lakhs interest is accrued
and remains unpaid at the end of the accounting year.

ii] In the opinion of the Management and to the best of their knowledge and belief, the value of current assets,
loans and advances, if realised in the ordinary course of business would not be less than the amount at which
they are stated in the Balance Sheet.

iii] The company has been maintaining its books of accounts in the ERP which has feature of recording audit trail
of each and every transaction made in the account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled throughout the year as required by proviso to sub rule (1] of
rule 3 of The Companies (Accounts] Rules, 2014 known as the Companies (Accounts] Amendment Rules, 2021.
Further audit trail of year has been preserved by the Company as per the statutory requirements for record
retention to the extent it was enabled and recorded in respected year.

iv] Previous year''s figures have been re-grouped/ re-arranged/ re-classified wherever considered necessary.

v] Event Occurring after Balance Sheet Date

a] On 26th May 2025, the board of directors recommended a final dividend of '' 1.00 per equity share of '' 5 each
to be paid to the shareholder for the financial year 2024-25, which is subject to approval by the shareholders
at the Annual General Meeting to be held on 28 August 2025. If approved, the dividend would result in cash
outflow of Rs. 289.82 lakhs.

b] Status in Case of ONGC Ltd.-

Tribunal has pronounced the order on 3-4-25. As per this order JDIL, respondent No2 has been ordered to
be deleted from the array of parties. Now JDIL will approach to Hon''ble Mumbai High Court to release the
bank guarantee. Since the order is of 3rd April''25 JDIL would take the financial impact in next financial year,
meanwhile JDIL would be able to release bank guarantee from the court.

Note 52: Other Statutory Information

i] . The Company does not have any benami property, where any proceeding has been initiated or pending

against the Company for holding any benami property.

ii] The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iii] The Company has not advanced or loaned or invested funds to any other person[s] or entity(ies), including
foreign entities [Intermediaries] with the understanding that the Intermediary shall:

[a] 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

[b] provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

iv] . The Company does not have any such transaction which is not recorded in the books of accounts that has

been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 [such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

v] . The Company has complied with the number of layers prescribed under clause [87] of section 2 of the Act

read with the Companies [Restriction on number of Layers] Rules, 2017.

vi] . The Company is not declared willful defaulter by and bank or financials institution or lender during the year

vii] The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

viii] . Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are

in agreement with the books of accounts

ix] The Company has used the borrowings from banks and financial institutions for the specific purpose for which
it was obtained.

x] The title deeds of all the immovable properties, [other than immovable properties where the Company is
the lessee and the lease agreements are duly executed in favour of the Company] disclosed in the financial
statements included in property, plant and equipment and capital work-in progress are held in the name of
the Company as at the balance sheet date.

xi] The Company does not have material transactions with struck off companies during the financial year.

xii] The Company does not have any capital work in progress and intangible assets under development during
the financial year.

xiii] The Company has not revalued its Property, Plant and equipment, Intangible, tangible assets [including right
of use of assets] during the financial year.

The accompanying notes are an integral part of the Standalone Financial Statements.

Material accounting policies and notes on standalone financial statements

As per our report of even date For & on behalf of the Board of Directors

For Kanodia Sanyal & Associates RAGHAV JINDAL D.P. JINDAL

Chartered Accountants Managing Director Chairman

Firm''s Registration No. 008396N DIN: 00405984 DIN: 00405579

Rajendra Kumar Kanodia P.N. VIJAY NARAYAN RAMASWAMY

Partner Director CEO

Membership No. 016121 DIN: 00049992 PAN: AAUPR3856R

Place: New Delhi PAWAN KUMAR RUSTAGI BINAYA KUMAR DASH

Date : 26th May, 2025 CFO Company Secretary

PAN: AACPR8012M ACS: 17982

Place: New Delhi
Date : 26th May, 2025

---

Mar 31, 2024

p) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the accounts.

Contingent Assets are neither recognized nor disclosed in the financial statement. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

q) Employee Benefits

Short Term Employee Benefits

Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

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 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. Payment to defined contribution retirement benefit scheme, if any, is charged as expenses as they fall due.

Defined Benefit Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @ 15 days salary for every completed year of service as per the Payment of Gratuity Act 1972. The gratuity liability amount is contributed to the approved scheme of LIC formed exclusively for gratuity payment to the employees. The gratuity fund has been approved by respective IT authorities.

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

Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.

r) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

s) Claims Recoverable

The claims in respect of fixed assets lost during the process of drilling (lost in hole) are recognised on the basis of invoices raised and correspondingly the depreciated value of the fixed assets lost in hole is charged off. Any deductions made from the claims raised are recognised on receipt of intimation in respect of the same.

t) Prepaid Expenses

Prepaid expense is not recognised in cases where total amount spent is Rs. 10,000/- or less. Such expenses are charged to statement of profit and loss.

u) Segment reporting:

Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision making body in the Company to make decisions for performance assessment and resource allocation. The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments.

v) Statement of cash flows:

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method adjusting the net profit for the effects of:

i. changes during the period in inventories and operating receivables and payables, transactions of a non-cash nature;

ii. non-cash items such as depreciation, provisions, and unrealised foreign currency gains and losses etc.; and

iii. all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents comprise cash at banks and on hand, short-term deposits with an original maturity of three months or less and liquid investments, which are subject to insignificant risk of changes in value.

w) Event Occurring after the Balance Sheet Date

Events occurring after the Balance Sheet Date and till the date on which the Financial Statement are approved, which are material in the nature and indicate the need for adjustments are considered in the financial statement.

x) Key sources of estimation uncertainty and critical accounting judgements:

In the course of applying the policies outlined in all notes under point 2 below, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period.

Key sources of estimation uncertainty:

i) Useful lives of property, plant and equipment:

The useful lives of property, plant and equipment are reviewed at least once a year. Such lives are dependent upon an assessment of both the technical lives of the assets, and also their likely economic lives based on various internal and external factors including relative efficiency, the operating conditions of the asset, anticipated technological changes, historical trend of plant load factor, historical planned and scheduled maintenance. It is possible that the estimates made based on existing experience are different from the actual outcomes and could cause a material adjustment to the carrying amount of property, plant and equipment.

ii) Provisions and Contingencies:

In the normal course of business, contingent liabilities arise from litigations and claims. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such contingent liabilities are disclosed in the notes but are not recognized. Potential liabilities that are remote are neither recognized nor disclosed as contingent liability. The management decides whether the matters needs to be classified as‘ remote,'' ‘possible'' or ‘probable'' based on expert advice, past judgements, terms of the contract, regulatory provisions etc.

iii) Fair value measurements:

When the fair values of financial assets or financial liabilities recorded or disclosed in the Financial Statements cannot be measured based on quoted prices in active markets, their fair values are measured using valuation techniques including the Discounted Cash Flows model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility.

iv) Income taxes:

Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid / recovered for uncertain tax positions. In assessing the realizability of deferred tax assets arising from unused tax credits, the management considers convincing evidence about availability of sufficient taxable income against which such unused tax credits can be utilized. The amount of the deferred income tax assets considered realizable, however, could change if estimates of future taxable income changes in the future.

v) Defined benefit plans:

The present value of defined benefit obligations are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual development in the future. These include the determination of the discount rate, future salary escalations and mortality rates etc. 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.

vi) Loss allowance assessment for a loan / guarantee given to subsidiary and a related party:

a) Assessment for loss allowance for a loan given to subsidiary involves assumptions relating to the valuation of it''s underlying business. In considering the value in use, the Management has made assumption relating to timing of resumption of commercial operations of mining activity, mineable reserves / resources, annual production, yield, future prices of coal, renewal of mining licenses, operational margins and discount rate. Any subsequent changes in the assumptions could materially impact the carrying value of the assets.

b] Recoverability of loans given to and fair value of financial guarantee given on behalf of, a related party serving as a mine development operator for lignite mine of a joint venture entity is assessed on the basis of projected cash flows derived on the presumption that it will continue as the operator having regard to it being selected as the preferred bidder in the fresh competitive bidding process carried out as per the regulator''s direction, its net worth and other external and internal sources of information.

vii) Expected credit loss:

The measurement of expected credit loss on financial assets is based on the evaluation of collectability and the management''s judgement considering external and internal sources of information. A considerable amount of judgement is required in assessing the ultimate realization of the loans having regard to, the past collection history of each party and ongoing dealings with these parties, and assessment of their ability to pay the debt on designated dates

VIII) Onerous contracts

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract.

y) Recent Pronouncements :-

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 March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Group.

z) Rounding of amounts

All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

Note 2: Estimates

The presentations of standalone financial statements is in conformity with the generally accepted accounting principles which requires estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognised in the year in which the results are known / materialized.

Note 30: Property, plant & equipment

The company adopted at initial and subsequent recognition of all of its property, plant and equipment at deemed cost method. Refer note 1(b) for depreciation method used, depreciation rate and useful life of PPE. Refer note 3 for gross carrying value, accumulated depreciation value, additions, deletions, depreciation for the period and other changes in PPE.

Property, Plant and Equipment are pledged/ hypothecated as collateral/security against the borrowings of the company.

Note 39 (A) : Trade Receivable, Loans & advances & Trade Payable

[i] a] “Trade Recoverable includes a sum of USD 14.77 Million [in Indian Rs. 6632.81 lakhs restated on 31.03.2011] as on

31.03.2017, which is outstanding from ONGC Ltd. For more than 7 Years. Since there has been no realization in this account, the outstanding amount of USD has not been restated after 31.03.2011.”

In 2008, ONGC withheld USD 14.77 Million from the amount payable to JDIL to recover its dues from Discovery Enterprises Private Limited [DEPL], claiming that DEPL is alter ego of JDIL. ONGC initiated arbitration to adjust the amount, receivable from DEPL from the amount payable to JDIL, making DEPL and JDIL as parties in the Arbitration proceedings.

JDIL objected to being included as a Party into the arbitration initiated by ONGC being a Non-signatory party to the signed contract between ONGC & DEPL, the said request was acceded by Hon''ble Tribunal. ONGC filed an appeal against the Order for deletion of JDIL before the Bombay High Court, which upheld the decision of Arbitrator. In October 2012, ONGC filed a Special Leave Petition [SLP] against the order of Bombay High Court.

JDIL had also initiated arbitration proceedings against ONGC and Arbitrator had given the award in favour of JDIL. ONGC filed an Appeal against this order in Single Bench, which was dismissed. Again they filed the appeal before the Double Bench of Bombay High Court. While, this Appeal was pending before Double Bench, ONGC moved an Application to Supreme Court to transfer this case to be tagged with SLP filed earlier. This case was transferred and tagged with earlier SLP.

JDIL filed execution of its award in Bombay High Court. ONGC made an Application in Supreme Court of India for stay of execution. Supreme of Court of India has given the stay after depositing the entire amount of Award of Rs.159 Crore in Supreme Court of India by ONGC. On Application being made by JDIL to Supreme Court of India to withdraw this amount against Bank Guarantee. Supreme Court of India has allowed to pay this amount to JDIL against Bank Guarantee of the equal amount.

Vide Supreme Court of India order dated 27th April 2022, Supreme Court of India has directed as under: -

• Dismissed the Arbitration Award and Appeal order in Bombay High Court with regard to Arbitration initiated by ONGC.

• To constitute a New Arbitration Tribunal between ONGC and JDIL.

• Arbitration Award and Bombay High Court order, in case of Arbitration initiated by JDIL to be kept in abeyance till the Award by the newly constituted Tribunal.

• This case was also transferred to Bombay High Court.

• JDIL has been asked to keep Bank Guarantee alive till the order of Arbitration Award.

According to the decision of Supreme Court of India, New Arbitration Tribunal was constituted. Proceedings of Tribunal is going on. Arbitrational Tribunal Members are: -

a] Retired Justice Mr. Swantanter Kumar, Presiding Arbitrator.

b] Retired Justice Mr. Naresh Patil, Arbitrator

c] Retired Justice Mr. Jayant Nath, Arbitrator

On the basis of a legal opinion taken from Law Firm, the Management is of the view that we have strong case for recovery of due from ONGC and hence not making any provision for doubtful debts.

b Trade receivable also includes a sum of USD 17.05 Lakhs [in Indian rupees Rs.1421.97 Lakhs] as deployment of rig Jindal Supreme with ONGC was delayed in 2020 on account of business disruption caused by COVID-19 pandemic. Thereafter, the mentioned amount was withheld by ONGC since 2020 against liquidated damages levied on the Company. In line with decision of Outside Expert Committee [OEC] to whom the matter was referred and to conclude this matter amicably, settlement agreement has been executed with ONGC. Consequently, USD 9.82 lakhs will be received in the FY2024-25 as per terms of settlement agreement. Balance amount of USD 7.23 Lakhs [In Indian rupees 602.41 lakhs] receivable from ONGC has been written off as bad debts during the financial year 2023-24.

[ii] The Loan and advance includes Rs. 891.44 Lakhs relate to Marine Oil Gas Private Limited [MOGL] in respect of which no realisation could be made. No interest income has been recognised since financial year 2011-12. The Company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon''ble Delhi High Court in September 2013 against this company along with related persons and Ex-Managing Director of the company. However in view of Ind As 113, the company has made a provision of full amount of Rs.891.44 Lakhs in Financial Year 2020-21 under expected credit loss on MOGL loan.

[iii] Loans & Advances includes an interest free loan of Rs.518.00 Lakhs [Previous year Rs.473.06 Lakhs], paid to Jindal Drilling & Industries Limited Employee Welfare Trust, which had been formed with the sole objective of employee''s welfare. The management is considering the same as good and fully recoverable. The amount of loan is discounted at 9.5% p.a. to arrive at fair value.

a] The company has entered into a lease contract for the unfurnished Jack up Rig - Jindal Star, effective from July 10th, 2023, with a contract period of three years. The total refurbishment costs incurred amount to Rs. 9,622.64 lakhs, which includes Rs.3,708.31 lakhs carried forward from the 2022-2023 financial year and Rs. 5,914.32 lakhs spent during the current year. These refurbishment expenses are to be amortized over the contract period. For the current year, Rs.2,138.91 lakhs have been charged to drilling operation expenses, while the remaining Rs.7,483.73 lakhs have been classified partly under other non-current assets and partly under other current assets.

b] The company has incurred a total of Rs.8,213.05 lakhs on the refurbishment of the Jack up Rig - Discovery-1. This amount includes Rs.3,767.34 lakhs brought forward from the previous financial year (2022-2023) and Rs.4,445.71 lakhs spent during the current year. The refurbishment expenses are to be amortized over a three-year contract period starting from May 23rd, 2023. During the current year, Rs.2,223.40 lakhs have been charged under drilling operation expenses. The remaining Rs.5,989.65 lakhs have been classified partly under other non-current assets and partly under other current assets.

c] The company has entered into a lease agreement for the unfurnished Jack up Rig - Virtue-1, effective October 27th, 2023, with a contract period of three years. The total refurbishment costs amount to Rs.8,544.01 lakhs, which includes Rs.215.64 lakhs carried forward from the previous financial year (2022-2023] and Rs.8,328.37 lakhs incurred during the current year. These refurbishment expenses will be amortized over the contract period. For the current year, Rs.1,216.12 lakhs have been charged to drilling operation expenses, while the remaining Rs.7,327.89 lakhs have been classified partly under other non-current assets and partly under other current assets.

The primary objective of the Company''s capital management is to ensure availability of funds at competitive cost for its operational and development needs and maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2024 and 31.03.2023. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.

financial assets, short term borrowings and other current financial liabilities approximate to their carrying amount largely due to the short term maturities of these instruments.

b) . Long term fixed rate and variable rate receivables / borrowings are evaluated by the Company based on

parameters such as interest rate, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowings fair value is determined by using Discounted Cash Flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation.

c) The fair value of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity and market parameters such as interest rates, foreign exchange rates and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivatives counterparties and believe them to be significant and warranting a credit adjustment.

Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities grouped into Level 1 to Level 3 as described below:

Quoted prices / published Net Asset Value (NAV) in an active markets (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities and financial instruments like mutual funds for which NAV is published by mutual funds. This category consist mutual fund investments and equity share instrument of other companies / JV''s.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (that is, unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Credit risk is the risk that the counter party will not meet its obligation under a financial instruments or customer contract, leading to a financial loss. The Company is exposed to credit risk from its cash and cash equivalents, loans, investments at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

Credit risk for banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the company assesses and manages credit risk based on internal credit rating system. The finance function consists of a team who assess and maintain an internal credit rating system. The company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Market risk and sensitivity

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency rate risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivatives financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of financial instrument will fluctuate because of changes in foreign exchange rates. 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. This is based on the financial assets and liabilities held as at 31.03.2024 and 31.03.2023.

ill] Previous year''s figures have been re-grouped/ re-arranged/ re-classified wherever considered necessary. iv] Event Occurring after Balance Sheet Date

On 21st May 2024, the board of directors recommended a final dividend of '' 0.50 per equity share of '' 5 each to be paid to the shareholder for the financial year 2023-24, which is subject to approval by the shareholders at the Annual General Meeting to be held on 28 August 2024. If approved, the dividend would result in cash outflow of Rs. 144.91 lakhs.

Note 52: Other Statutory Information

i] . The Company does not have any benami property, where any proceeding has been initiated or pending

against the Company for holding any benami property.

ii] The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iii] The Company has not advanced or loaned or invested funds to any other person(s] or entity(ies], including foreign entities (Intermediaries] with the understanding that the Intermediary shall:

(a] 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

(b] provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

iv] . The Company does not have any such transaction which is not recorded in the books of accounts that has been

surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

v] . The Company has complied with the number of layers prescribed under clause (87] of section 2 of the Act read

with the Companies (Restriction on number of Layers] Rules, 2017.

vi] . The Company is not declared willful defaulter by and bank or financials institution or lender during the year

vii] The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

viii] . Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in

agreement with the books of accounts

ix] . The Company has used the borrowings from banks and financial institutions for the specific purpose for which it

was obtained.

x] . The title deeds of all the immovable properties, (other than immovable properties where the Company is the les

see and the lease agreements are duly executed in favour of the Company] disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

xi] . The Company does not have material transactions with struck off companies during the financial year.

xii] . The Company does not have any capital work in progress and intangible assets under development during the

financial year.

xiii] . The Company has not revalued its Property, Plant and equipment, Intangible, tangible assets ( including right of

use of assets] during the financial year .

The accompanying notes are an integral part of the Standalone Financial Statements.

Material accounting policies and notes on standalone financial statements

As per our report of even date For & on behalf of the Board of Directors

For Kanodia Sanyal & Associates RAGHAV JINDAL D.P. JINDAL

Chartered Accountants Managing Director Chairman

Firm''s Registration No. 008396N DIN: 00405984 DIN: 00405579

PALLAV KUMAR VAISH PAWAN KUMAR RUSTAGI NARAYAN RAMASWAMY

Partner CFO CEO

Membership No. 508751 PAN: AACPR8012M PAN: AAUPR3856R

Place: New Delhi VIJAY KAUSHIK BINAYA KUMAR DASH

Date : 21st May, 2024 Director Company Secretary

DIN: 02249672 ACS: 17982

Place: New Delhi Date : 21st May, 2024

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Mar 31, 2023

Terms and rights attached to equity shares

Equity shares have a par value of INR 5. They entitle the holder to participate in dividends, and to share in the proceeds of winding up of the company in proportion to the number of amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Note 30: Property, plant & equipment

The company adopted at initial and subsequent recognition of all of its property, plant and equipment at deemed cost method. Refer note 1(b) for depreciation method used, depreciation rate and useful life of PPE. Refer note 3 for gross carrying value, accumulated depreciation value, additions, deletions, depreciation for the period and other changes in PPE.

Property, Plant and Equipment are pledged/ hypothecated as collateral/security against the borrowings of the company.

Contractual obligations

The company is under obligation for major repair and maintenance of investment property, if any required. In ordinary course of business, all day to day repair and maintenance shall be borne by the tenant. Further the tenant is not permitted to carry out any alteration, construction or development of investment property.

Leasing Arrangement

The properties are leased to tenants under long-term and short term operating leases with rental payable monthly. All the lease arrangements are cancellable in nature.

Estimation of fair value

The company is encouraged but not required to measure the fair value on the basis of a valuation done by an independent valuer. The market for comparable properties is inactive and alternative measurements of fair value based on discounted cash flow projections are not available. Hence the investment properties fair value taken at its cost of acquisition as per management estimation.

Note 32: Other Intangible assets

Refer to Note 1(c) for useful lives, method of amortisation used. Refer to Note 5 for Gross carrying value, accumulated amortisation and reconciliation.

a) LC / Bank Guarantee issued by the banks are provided as contingent liability against the contractual / legal performance of the company towards services being rendered to the customer. It is not predictable for the company to estimate the timings of cash outflows in respect of above as no event occurred in the history of the company.

b) Income Tax Status :-

From the assessment year 2008-09 to 2013-14, cases are pending before ITAT and for assessment year 2014-15 to 2015-16 & 2016-17 appeals are pending before CIT (Appeals). It is not predictable for the company to estimate the timings of cash outflows in respect of above as it is determinable only on receipt of judgement / decisions pending with various forums / authorities. The year wise demands details are as under;

c) IndusInd Bank has furnished, a bank guarantee of Rs 160 Crores against the Pledge of fixed deposit of Rs.80 Crores and extension of Charge on Jack-up Rig Discovery-I. Further State bank of India has furnished Rs. 6.75 Crore as bank guarantee against pledged of fixed deposit of Rs. 6.85 crore.

Defined Benefit Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @ 15 days salary for every completed year of service as per the Payment of Gratuity Act 1972. The gratuity liability amount is contributed to the approved scheme of LIC formed exclusively for gratuity payment to the employees. The gratuity fund has been approved by respective IT authorities.

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A) Salary Increases - Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations 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 valuations can increase the plan''s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

All undertaking of the company is engaged in similar activities of providing services to Oil & Gas Companies. Therefore there is only one reportable segment - Drilling and related services under Segment Reporting. The company operates in a single geographical segment - India.

Information about major customers

Revenue for the year ended March 31, 2023 and March 31, 2022 were from customers located in India. Revenue to specific customers exceeding 10% of total revenue for the years ended March 31, 2023 and March 31, 2022 were as follows:

Foreign Currency Forward Contracts

The Company is having long term chartered hire income contract with ONGC. Since the service contract is under international competitive bidding. The company receives revenue in USD. The company has hedged future receivables by selling USD under the forward contracts.

The foreign currency forward contracts are designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally within one year.

Outstanding notional amount for forward contracts is 289 Lakhs USD (Previous year 254 Lakhs USD). The gain/(loss) due to fluctuation in foreign currency exchange rates on derivative contract, recognized as Other Comprehensive loss of Rs. (718.36) Lakhs (Previous year gain of Rs.182.39 Lakhs ).

Note 39: Trade Receivable, Loans & advances & Trade Payable

[i] a] “Trade Recoverable includes a sum of USD 14.77 Million [in Indian Rs. 6632.81 lakhs restated on 31.03.2011] as on 31.03.2017, which is outstanding from ONGC Ltd. For more than 7 Years. Since there has been no realization in this account, the outstanding amount of USD has not been restated after 31.03.2011.”

In 2008, ONGC withheld USD 14.77 Million from the amount payable to JDIL to recover its dues from Discovery Enterprises Private Limited [DEPL], claiming that DEPL is alter ego of JDIL. ONGC initiated arbitration to adjust the amount, receivable from DEPL from the amount payable to JDIL, making DEPL and JDIL as parties in the Arbitration proceedings.

JDIL objected to being included as a Party into the arbitration initiated by ONGC being a Non- signa

tory party to the signed contract between ONGC & DEPL, the said request was acceded by Hon''ble Tribunal. ONGC filed an appeal against the Order for deletion of JDIL before the Bombay High Court, which upheld the decision of Arbitrator. In October 2012, ONGC filed a Special Leave Petition [SLP] against the order of Bombay High Court.

JDIL had also initiated arbitration proceedings against ONGC and Arbitrator had given the award in favour of JDIL. ONGC filed an Appeal against this order in Single Bench, which was dismissed. Again they filed the appeal before the Double Bench of Bombay High Court. While, this Appeal was pending before Double Bench, ONGC moved an Application to Supreme Court to transfer this case to be tagged with SLP filed earlier. This case was transferred and tagged with earlier SLP.

JDIL filed execution of its award in Bombay High Court. ONGC made an Application in Supreme Court of India for stay of execution. Supreme of Court of India has given the stay after depositing the entire amount of Award of Rs.159 Crore in Supreme Court of India by ONGC. On Application being made by JDIL to Supreme Court of India to withdraw this amount against Bank Guarantee. Supreme Court of India has allowed to pay this amount to JDIL against Bank Guarantee of the equal amount.

Vide Supreme Court of India order dated 27th April 2022, Supreme Court of India has directed as under: -

• Dismissed the Arbitration Award and Appeal order in Bombay High Court with regard to Arbitration initiated by ONGC.

• To constitute a New Arbitration Tribunal between ONGC and JDIL.

• Arbitration Award and Bombay High Court order, in case of Arbitration initiated by JDIL to be kept in abeyance till the Award by the newly constituted Tribunal.

• This case was also transferred to Bombay High Court.

• JDIL has been asked to keep Bank Guarantee alive till the order of Arbitration Award.

According to the decision of Supreme Court of India, New Arbitration Tribunal was constituted. Proceedings of Tribunal is going on. Arbitrational Tribunal Members are: -

a) Retired Justice Mr. Swantentec Kumar, Presiding Arbitrator.

b) Retired Justice Mr. Naresh Patil, Arbitrator

c) Retired Justice Mr. Jayant Nath, Arbitrator

On the basis of a legal opinion taken from Law Firm, the Management is of the view that we have strong case for recovery of due from ONGC and hence not making any provision for doubtful debts.

b Trade receivable also includes a sum of USD 17.05 Lakhs (in Indian rupees Rs.1400.80 Lakhs) has been deducted by ONGC Ltd. as delaying in deployment of Jack-up Rig Jindal Supreme. This delay was due to COVID-19, which is beyond the control of the company. The Company has made representation to ONGC Ltd to waive off of this LD charges. ONGC has declined to accept the request of waiver. However, the Company is in process of taking legal action, since this delay is due to Covid-19 which is not in the control of Company .The Company is considering it good and making provision of USD 2.17 Lakhs ( in Indian Rupees 178.23 lakhs) as expected credit loss during this financial year against it.

(ii) The Loan and advance includes Rs. 891.44 Lakhs relate to Marine Oil Gas Private Limited (MOGL) in respect of which no realisation could be made. No interest income has been recognised since financial year 2011-12. The Company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon''ble Delhi High Court in September 2013 against this company along with related persons and Ex-Managing Director of the company. However in view of Ind As 113, the company has made a provision of full amount of Rs.891.44 Lakhs in Financial Year 2020-21 under expected credit loss on MOGL loan.

(iii) Loans & Advances includes an interest free loan of Rs.473.06 Lakhs (Previous year Rs.432.02 Lakhs), paid to Jindal Drilling & Industries Limited Employee Welfare Trust, which had been formed with the sole objective of employee''s welfare. The management is considering the same as good and fully recoverable. The amount of loan is discounted at 9.5% p.a. to arrive at fair value.

(iv) In Financial Year 2019-20, the Company has decided to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from the current financial year. Accordingly, the provision for income tax and deferred tax balances have been recorded/ re-measured using the new tax rate.

(v) Earlier, the Company has entered into contract of lease for unfurnished Jack up Rig- Jindal Star. The company has incurred Rs.3,393.51/-Lakhs on the refurbishment of this rig. This refurbishment expenses would be charged over the contract period. During the year the company has charged Rs.714.55 Lakhs (Previous year Rs.1140.30 Lakhs) under the head of Drilling operation expenses.

The primary objective of the Company''s capital management is to ensure availability of funds at competitive cost for its operational and development needs and maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2023 and 31.03.2022. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.

The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of Company''s capital management, equity includes paid up equity share capital and reserves and surplus and effective portion of cash flow hedge and Debt comprises of long term borrowings including current maturities of these borrowings.

Fair Value Techniques:

The fair value of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values:

a) . Fair value of cash and short term deposits, trade receivables, trade payables, non-current loans, other current

financial assets, short term borrowings and other current financial liabilities approximate to their carrying amount largely due to the short term maturities of these instruments.

b) Long term fixed rate and variable rate receivables / borrowings are evaluated by the Company based on parameters such as interest rate, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowings fair value is determined by using Discounted Cash Flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation.

c) The fair value of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity and market parameters such as interest rates, foreign exchange rates and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivatives counterparties and believe them to be significant and warranting a credit adjustment.

Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities grouped into Level 1 to Level 3 as described below:

Quoted prices / published Net Asset Value (NAV) in an active markets (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities and financial instruments like mutual funds for which NAV is published by mutual funds. This category consist mutual fund investments and equity share instrument of other companies / JV''s.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (that is, unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities grouped into Level 1 to Level 3 as described below:

Assets and Liabilities Measured at Fair Value (Accounted)

NOTES FORMING PART OF FINANCIAL STATEMENT

The fair values of the financial assets and financial liabilities included in the level 2 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties. Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy as at 31.03.2023 and 31.03.2022;

Note 44: Financial Risk Management Objectives and Policies

The company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The company''s risk management is carried out by a treasury department under policies approved by the board of directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the company''s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk and credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

Credit risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instruments or customer contract, leading to a financial loss. The Company is exposed to credit risk from its cash and cash equivalents, loans, investments at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

Credit Risk Management

Credit risk for banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the company assesses and manages credit risk based on internal credit rating system. The finance function consists of a team who assess and maintain an internal credit rating system. The company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Liquidity risk

Liquidity risk is the risk that the company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and projected cash flows from operations. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of working capital loans, letter of credit facility, bank loans and credit purchases.

The bank cash credit facilities may be drawn at any time and may be terminated by the bank without notice. The corporate loan facilities may be drawn at any time in INR and have an average maturity of 2 years.

Maturity profile of financial liabilities

The tables below analyse the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative and derivative financial liabilities, if any.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 1 to 5 year and more equal their carrying balances as the impact of discounting is not significant.

Market risk and sensitivity

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency rate risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivatives financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of financial instrument will fluctuate because of changes in foreign exchange rates. 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. This is based on the financial assets and liabilities held as at 31.03.2023 and 31.03.2022.

Sensitivity

The sensitivity analyses exclude the impact of movement in market variables on the carrying value of post-employment benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market rates. The company''s activities expose it to a variety of financial risk including the effect of changes in foreign currency exchange rates and interest rates. The company uses derivatives financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest rates.

Note 46: Operating leases

The Company has taken office premises on cancellable lease. These are cancellable and are renewable by mutual consent on mutually agreed terms.

Note 47: Rounding off

Figures less than 500 have been shown at actuals wherever statutorily required to be disclosed, as the figures have been rounded off to the nearest Lakhs.

Note 48: Collaterals

Inventory, Trade Receivables, Other Financial Assets, Property, Plant and Equipment are pledged/ hypothecated as collateral/security against the borrowings of the company. (Please refer Note No. 18(1) & 20).

**:- Decrease was primarily on account of increase in profit before tax and lower outstanding borrowing due to repayment of current maturity of long term loan.

***:- Increase was primarily on account of increase in profit after tax.

<:- Decrease was primarily on account of increase in turnover.

<<:- Decrease was primarily on account of increase in turnover.

#:- Decrease was primarily on account of increase in working capital.

##:- Increase was primarily on accounts of increase in profit after tax.

###:- Increase was primarily on account of increase in profit before tax

^A Increase was primarily on accounts increase in profit on sale of and fair value gain on mutual fund and equity investment during the financial year.

Note 51: Miscellaneous

i] Dues to micro and small enterprises have been determined as per information collected by the management & have been relied upon by the auditors.

ii] In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

iii] Previous year''s figures have been re-grouped/ re-arranged/ re-classified wherever considered necessary. Note 52: Other Statutory Information

i] . The Company does not have any benami property, where any proceeding has been initiated or pending

against the Company for holding any benami property.

ii] The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iii] The Company has not advanced or loaned or invested funds to any other person[s] or entity[ies], including foreign entities [Intermediaries] with the understanding that the Intermediary shall:

[a] 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

[b] provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

iv]. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 [such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

v] . The Company has complied with the number of layers prescribed under clause [87] of section 2 of the Act read

with the Companies [Restriction on number of Layers] Rules, 2017.

vi] . The Company is not declared willful defaulter by and bank or financials institution or lender during the year

vii] . The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the stat

utory period.

viii] . Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in

agreement with the books of accounts

ix] . The Company has used the borrowings from banks and financial institutions for the specific purpose for which it

was obtained.

x] The title deeds of all the immovable properties, [other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company] disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

xi] The Company does not have material transactions with struck off companies during the financial year.

xii] The Company does not have any capital work in progress and intangible assets under development during the financial year.

xiii] The Company has not revalued its Property, Plant and equipment, Intangible, tangible assets [ including right of use of assets] during the financial year .

---

Mar 31, 2018

Corporate Information

Jindal Drilling & Industries Limited (JDIL) is a company limited by shares, incorporated on 17th October; 1983 under the Companies Act,l956 and has its registered office at Raigad (Maharashtra) and head office at Delhi. JDILs shares are listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). JDIL is engaged in providing services to entities involved in exploration of Oil & Gas.

Note 1: Estimates

The presentations of financial statements is in conformity with the generally accepted accounting principles which requires estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognised in the year in which the results are known / materialized.

* Non-current investments are recognised initially at carrying value while short term investments except investments in quoted equity share are recognised initially at fair value through FVTPL .

* Short term investments in quoted equity shares are recognised at fair value through FVOCI.

* Religare credit investment trust has been classified as current investment from non-current investments in current year

Terms and rights attached to equity shares

Equity shares have a par value of INR 5. They entitle the holder to participate in dividends, and to share in the proceeds of winding up of the company in proportion to the number of amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Note 2: Property, plant & equipment

The company adopted at initial and subsequent recognition of all of its property, plant and equipment at deemed cost method. Refer note 1(b) for depreciation method used, depreciation rate and useful life of PPE. Refer note 3 for gross carrying value, accumulated depreciation value, additions, deletions, depreciation for the period and other changes in PPE.

Property Plant and Equipment are pledged/ hypothecated as collateral/security against the borrowings of the company

Contractual obligations

The company is under obligation for major repair and maintenance of investment property, if any required. In ordinary course of business, all day to day repair and maintenance shall be borne by the tenant. Further the tenant is not permitted to carry out any alteration, construction or development of investment property.

Leasing Arrangement

The properties are leased to tenants under long-term and short term operating leases with rental payable monthly All the lease arrangements are cancellable in nature.

Estimation of fair value

The company is encouraged but not required to measure the fair value on the basis of a valuation done by an independent valuer The market for comparable properties is inactive and alternative measurements of fair value based on discounted cash flow projections are not available. Hence the investment properties fair value taken at its cost of acquisition as per management estimation.

Note 3: Other Intangible assets

Refer to Note 1(c) for useful lives, method of amortisation used. Refer to Note 4 for Gross carrying value, accumulated amortisation and reconciliation.

Note:

a) LC / Bank Guarantee issued by the banks are provided as contingent liability against the contractual / legal performance of the company towards services being rendered to the customer It is not predictable for the company to estimate the timings of cash outflows in respect of above as no event occurred in the history of the company.

b) Corporate Guarantee issued by the company is provided as contingent liability against the contractual / legal performance of the Discovery Drilling Pte. Ltd. JV Company towards financial obligation to IndusInd Bank. It is not predictable for the company to estimate the timings of cash outflows in respect of above as no event occurred in the history of the company

c) In the matter of custom demand, an appeal filed by the company and the same is pending at Hon’ble Mumbai Court. The company deposited security amount of Rs. 60 Lakhs against demand with the authority. It is not predictable for the company to estimate the timings of cash outflows in respect of above as it is determinable only on receipt of judgement / decisions pending with various forums / authorities.

d) From the assessment year 2008-09 to 2013-14, are pending before ITAT and for assessment year 2014-15 appeal is pending before CIT (Appeals). It is not predictable for the company to estimate the timings of cash outflows in respect of above as it is determinable only on receipt of judgement / decisions pending with various forums / authorities. The year wise demands details are as under;

Note 4: Employee Benefits

As per As per Indian Accounting Standard 19 “Employee benefits”, the disclosures as defined are given below: Defined Contribution Plans

Contribution to Defined Contribution Plans, recognised as expense for the year is as under:

Defined Benefit Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @ 15 days salary for every completed year of service as per the Payment of Gratuity Act 1972. The gratuity liability amount is contributed to the approved scheme of LIC formed exclusively for gratuity payment to the employees. The gratuity fund has been approved by respective IT authorities.

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A) Salary Increases - Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) I nvestment 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 valuations can increase the plan’s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

Other Long Term Benefits Leave Encashment

The total actuarial earned leave liability, consisting, of encashment, availment, lapse and compensated absence, while in services and on exit, as per rules of the company, in accordance with IND AS-19 is as under

Note 5: Segment reporting

All undertaking of the company is engaged in similar activities of providing services to Oil & Gas Companies. Therefore there is only one reportable segment - Drilling and related services under Segment Reporting. The company operates in a single geographical segment - India.

Note 6: Related parties disclosures (as per Ind As 24)

A. List of related parties where control exist and also related parties with whom transactions have taken place and relationships:

**Shri Hemant Kumar Khanna resigned from the office of Director as well as Whole Time Director on 22nd September; 2017 and Shri Radhey Shyam Gupta appointed as CEO w.e.f 2nd February, 2018.

Note 7: Derivative Financial Instruments

The Company uses forward contracts to manage some of its transaction exposure. The details of such contracts as on the balance sheet date are as follows:

Foreign Currency Forward Contracts

The Company is having long term chartered hire income contract with ONGC. Since the service contract is under international competitive bidding. The company receives revenue in USD. The company has hedged future receivables by selling USD under the forward contracts.

The foreign currency forward contracts are designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally within one year

Outstanding notional amount for forward contracts is USD 9 Lakhs (Previous year USD 9 Lakhs).

The gain due to fluctuation in foreign currency exchange rates on derivative contract, recognized as Other Comprehensive Income of Rs. 29.78 lakhs (Previous year gain of Rs. 367.99).

Note 8: Financial reporting of Interest in Joint Ventures

Discovery Drilling Pte Ltd (DDPL) and Virtue Drilling Pte Ltd (VDPL) continued to be Joint Ventures of the company

Note 9: Trade Receivable, Loans & advances & Trade Payable

(i) An amount of Rs 44.09 lacs is recoverable from ONGC relating Rig PN-3. This matter is under the arbitration. The Management is confident to win the case and considered good for recovery

(ii) Trade receivable includes a sum of USD 147.72 lakhs (In Indian rupees Rs. 6585.54 lakhs restated on 31-03-201 1) as on 31.03.2018, which is outstanding from ONGC Ltd for more than 10 years. Against this company had already made a provision for bad and doubtful debt of Rs. 1500 Lakhs. Till date decision of Hon’ble Bombay High Court is in favour of the company. Against this order ONGC has filed the appeal in Supreme Court which is pending for its decision. The management of company is of view that case would be decided in favour of the company. In view of this, the company has written back the provision of bad debts of Rs. 1500 Lakhs. The other income and trade receivables increased by Rs. 1500 Lakhs due to effect of change in above estimate.

(iii) The Loan and advance includes Rs. 891.44 Lakhs relate to Marine Oil Gas Private Limited (MOGL) in respect of which no realisation could be made. No interest income has been recognised since financial year 2011-12. The Company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon’ble Delhi High Court in September 2013 against this company along with related persons and Ex-Managing Director of the company. However in view of Ind As 113, the company has made a provision of Rs. 98.05 Lakhs under expected credit loss on MOGL loan.

(iv) Loans & Advances includes an interest free loan of Rs. 432.02 lakhs (Previous year Rs. 1048 lakhs), paid to Jindal Drilling & Industries Limited Employees Welfare Trust, which had been formed with the sole objective of employee’s welfare. The management is considering the same as good and fully recoverable. The amount of loan is discounted at 9.5% p.a. to arrive at fair value.

(v) Under the arbitration award relating to Noble Edholt Jack up RIG and subsequent out of the court settlement dated 28th February 2018 the company has paid USD 9,10,310 (Rs. 5841 Lakhs) as claim paid and USD 36,41,862 (Rs. 2,367 Lakhs) against existing liability in the books. Further the company has to written off Rs. 1140 Lakhs which was recoverable from Paragon on account of reimbursement of expenses which could not be recovered under arbitration award and out of the court settlement.

Note 10: Details of Loan given, Investment made and Guarantee given as covered u/s 186 (4) of the Companies Act, 2013

The details of loans given, investments made, guarantee given or security provided are as under;

All the above loans and advances given are for the Business purposes.

- Loans and advances mentioned supra have been shown under “Non-Current Loans & Advances”.

- Loans to employee/welfare trusts as per the Company’s policy are not considered. None of the Loan and Associate Companies have per se,made investments in shares of the company

The above details are as per Regulation 34(3) and 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Note 11: Capital Management

The primary objective of the Company’s capital management is to ensure availability of funds at competitive cost for its operational and development needs and maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2018 and 31.03.2017. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.

The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of Company’s capital management, equity includes paid up equity share capital and reserves and surplus and effective portion of cash flow hedge and Debt comprises of long term borrowings including current maturities of these borrowings.

Fair Value Techniques:

The fair value of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values:

a). Fair value of cash and short term deposits, trade receivables, trade payables, non-current loans, other current financial assets, short term borrowings and other current financial liabilities approximate to their carrying amount largely due to the short term maturities of these instruments.

b) Long term fixed rate and variable rate receivables / borrowings are evaluated by the Company based on parameters such as interest rate, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowings fair value is determined by using Discounted Cash Flow (DCF) method using discount rate that reflects the issuer’s borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation.

c) The fair value of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity and market parameters such as interest rates, foreign exchange rates and volatility These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivatives counterparties and believe them to be significant and warranting a credit adjustment.

Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Company’s asset and liabilities grouped into Level 1 to Level 3 as described below:

Quoted prices / published Net Asset Value (NAV) in an active markets (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities and financial instruments like mutual funds for which NAV is published by mutual funds. This category consist mutual fund investments and equity share instrument of other companies / JV’s.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (that is, unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The following table provides the fair value measurement hierarchy of Company’s asset and liabilities grouped into Level 1 to Level 3 as described below:

During the year ended 31.03.2018 and 31.03.2017, 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. There is no transaction/balance under level 3.

The fair values of the financial assets and financial liabilities included in the level 2 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties. Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy as at 31.03.2018 and 31.03.2017;

Note 12: Financial Risk Management Objectives and Policies

The company’s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the company derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The company’s risk management is carried out by a treasury department under policies approved by the board of directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the company’s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk and credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity

Credit risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instruments or customer contract, leading to a financial loss. The Company is exposed to credit risk from its cash and cash equivalents, loans, investments at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

Credit Risk Management

Credit risk for banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the company assesses and manages credit risk based on internal credit rating system. The finance function consists of a team who assess and maintain an internal credit rating system. The company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Liquidity risk

Liquidity risk is the risk that the company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and projected cash flows from operations. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of working capital loans, letter of credit facility bank loans and credit purchases.

The bank cash credit facilities may be drawn at any time and may be terminated by the bank without notice. The corporate loan facilities may be drawn at any time in INR and have an average maturity of 2 years.

Maturity profile of financial liabilities

The tables below analyse the company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative and derivative financial liabilities, if any

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Market risk and sensitivity

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency rate risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivatives financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of financial instrument will fluctuate because of changes in foreign exchange rates. 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. This is based on the financial assets and liabilities held as at 31.03.2018 and 31.03.2017.

Foreign currency risk exposure

The company exposure to foreign currency risk at the end of the reporting period expressed in INR, are as follows;

Sensitivity

The sensitivity analyses exclude the impact of movement in market variables on the carrying value of post-employment benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market rates. The company’s activities expose it to a variety of financial risk including the effect of changes in foreign currency exchange rates and interest rates. The company uses derivatives financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest rates.

Note 13: Operating leases

The Company has taken office premises on cancellable lease. These are cancellable and are renewable by mutual consent on mutually agreed terms.

Note 14: Rounding off

Figures less than 500 have been shown at actuals wherever statutorily required to be disclosed, as the figures have been rounded off to the nearest lacs.

Note 15: Collaterals

Inventory, Trade Receivables, Other Financial Assets, Property, Plant and Equipment are pledged/ hypothecated as collateral/security against the borrowings of the company The investment in Joint Venture companies are pledged as collaterals as per note 6(A)(1).

Note 16: Miscellaneous

i) Dues to micro and small enterprises have been determined as per information collected by the management & have been relied upon by the auditors.

ii) In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

iii) Previous year’s figures have been re-grouped/ re-arranged/ re-classified wherever considered necessary

---

Mar 31, 2016

NOTE 1. DISCLOSURE AS PER ACCOUNTING STANDARD - 15

(a) Gratuity :

(i) The Employees'' Gratuity Fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(ii) Actuarial Valuation of Gratuity is based on the maximum Liability of Rs, 10 lacs as provided under the Gratuity Act,l972.

(b) Leave Encashment

(i) The obligation for Leave Encashment is recognized and disclosed as per the Actuarial Valuation Report.

(c) Disclosure as per Actuarial Valuation Report:

(i) Expenses recognized during the year (Under the Head “Employees Benefit Expenses”)

All undertakings of the Company are Engaged in similar activities of providing services to Oil & Gas Companies. Therefore, there is only one reportable Segment - Drilling and Related Services under Accounting Standard - 17 “Segment Reporting”. The Company operates in a Single Geographical Segment - India.

NOTE 2:

As per Accounting Standard - 18, the Company''s related parties and transactions are disclosed below:

A. List of related parties & relationships:

i. Joint Venture of Reporting Enterprise

Discovery Drilling Pte Ltd., Singapore (DDPL)

Virtue Drilling Pte Ltd., Singapore (VDPL)

ii. Key Management Personnel

Name of person Relationship

Shri H K Khanna CEO

Shri Pawan Kumar Rustagi CFO

Shri Rajeev Ranjan Company Secretery

iii. Other Related Parties

Shri D P Jindal Chairman

Shri Raghav Jindal Managing Director

Sigma Infrastructure Pvt Ltd

Maharashtra Seamless Ltd

Jindal Pipes Ltd

Neptune Buildtech Pvt Ltd

(ceased to be Related Party w.e.f 01-04-2015)

(i) An amount of Rs, 4,408,732 is recoverable from ONGC relating rig PN-3.This matter is under arbitration. Management is confident to win the case and considered good for recovery.

(ii) Trade recoverable includes a sum of US$14,772,408.55 (In Indian rupees Rs, 658,553,972 restated on 31-03-2011) as on 31.03.2016, which are outstanding from ONGC Ltd for more than 7 years .Since there has been no realization in this account, the outstanding amount in US$ has not been restated after 31.03.2011 and, a sum of Rs, 1500 lacs has been provided for till year end 31.03.2013 towards its doubtful realization. No further provision is considered necessary by the management as there is every possibility of its full realization after finality of the case pending before the courts.

(iii) The Company had given an advance of Rs, 1098 Lacs to Marine Oil Gas Private limited in FY 2008-09 & 2009 -10 in respect of which no realization could be made . No interest income has been recognized since financial year 20ll-l2.The company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon''ble Delhi High Court in September 20l3 against this Company along with related persons and Companies of Ex-Managing Director

(iv) Loans & Advances include an interest free loan of Rs, l 048.00 lacs, paid to Jindal Drilling & Industries Limited Employee Welfare Trust., which had been formed with the sole objective of employees welfare. The management is considering the same as good and fully recoverable.

(v) Trade Payable includes Rs, 9591.47 Lacs payable to Noble Drilling Corporation on account of Chartered Hire charges relating to Rig ''EDHOLT''.Paragon offshore Drilling LLC (Formerly Noble Drilling Corporation) filed request for arbitration before international court of Arbitration of International chamber of commerce, France against Jindal Drilling & Industries ltd. Paragon had invoked the Arbitration clause, Arbitrator is appointed & its proceedings are in progress.

All the above loans and advances given are for Business purposes.

i) Loans and advances mentioned supra have been shown under “Long Term Loans & Advances” and repayable on demand but not beyond seven years.

ii) Loans to employee / welfare trusts as per the Company''s policy are not considered. None of the loans and associate Companies have, per se, made investments in Shares of the company

The above details are as per regulation 34(3) and 53(f) of SEBI (Listing and Disclosure Requirements) Regulations,20l5 NOTE 26.14:

a) Dues to micro and small enterprises have been determined as per information collected by the management & has been relied upon by the auditors.

b) In the opinion of the Management and to the best of their knowledge and belief, the value of Current Assets, loans and advances, if realized in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

c) Figures have been rounded off to the nearest rupee.

d) Previous year''s figures have been re-grouped / re-arranged / re-classified wherever considered necessary.

---

Mar 31, 2015

Note 1

CORPORATE INFORMATION:

Jindal Drilling & Industries Limited (JDIL)was incorporated on 17th October,l983 under the Companies Act,l956 and has its registered office at Raigad (Maharashtra) and head office at Delhi. JDIL's shares are listed on National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE). JDIL is engaged in providing services to entities involved in exploration of Oil & Gas.

1.1) The Company has one class of equity shares having a par value of Rs. 5 each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company after distribution of all preferential amounts

1.2 Working capital loans are secured by hypothecation of inventories, book debts and all other current assets and first charge on fixed assets excluding specific charge, ranking pari-passu amongst working capital lending Banks.

Note 2.1 : CONTINGENT LIABILTIES

Claims against the company not acknowledged as debt :

Commitments

1. Estimated amount of contracts remaining to be executed on capital account

Estimated amount of contracts for purchase of business assets for the use of the company remaining to be executed, not provided for (net of advances) Rs. 229,452,500 /- (Previous Year Rs. 276,000,000/-).

2. Contingent Liabilities not provided for :

(Amount in Rs.)

Particulars As at As at 31st March 2015 31st March 2014

(i) LC/ Guarantee issued by the Banks 368,391,470 614,728,540

(LC/ Bank Guarantee are provided under Legal/ Contractual Obligations)

(ii) Customs Demand

An Appeal pending at Hon'ble 25,502,866 25,502,866 Mumbai High Court

(A sum of Rupees sixty lacs against demand had been deposited by the company)

(iii) Service Tax Demand

An Appeal by Company pending with 60,394,143 60,394,143 Appellate Tribunal

Note 2.2 :Disclosure as per Accounting Standard - 15

(a) Gratuity:

(i) The employees' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(ii) Actuarial Valuation of Gratuity is based on the maximum liability of Rs. 10 lacs as provided under the Gratuity Act, 1972.

(b) Leave Encashment

(i) The obligation for leave encashment is recognised and disclosed as per the Actuarial Valuation Report.

(c) Disclosure as per Actuarial Valuation Report :

(i) Expenses recognised during the year (Under the head "Employees benefit expenses")

NOTE 2.3 :

All undertakings of the Company are engaged in similar activities of providing services to Oil & Gas Companies. Therefore, there is only one reportable Segment - Drilling and Related Services under Accounting Standard - 17 "Segment Reporting". The Company operates in a single geographical segment - India.

NOTE 2.4 :

As per Accounting Standard - 18, the Company's related parties and transactions are disclosed below:

A. List of related parties & relationships:

i. Joint Venture of Reporting Enterprise Discovery Drilling Pte Ltd., Singapore (DDPL)

Virtue Drilling Pte Ltd., Singapore (VDPL)

ii. Key Management Personnel

Name of person Relationship

Sh. D.P.jindal Executive Chairman

Sh. Raghav Jindal Managing Director

Note 2.5: Office Premises taken on lease

The Company has taken office premises on cancellable lease. These are normally renewal after expiry of lease period.

Note 2.6: Financial reporting of Interest in Joint Ventures as per Accounting Standard AS -27:

(i) Discovery Drilling Pte Ltd (DDPL) and Virtue Drilling Pte Ltd (VDPL) continue to be Joint Ventures of the company.

Note 2.7: Trade Receivable, Loans & advances &Trade Payable

(i) An amount of Rs. 44,08,732 is recoverable from ONGC relating rig PN-3.This matter is under arbitration .Management is confident to win the case and considered good for recovery.

(ii) Trade recoverable includes a sum of US$ 14,772,408.55 ( In indian rupees Rs. 658,553,972/- restated on 31-03-2011) as on 31.03.2015, which are outstanding from ONGC Ltd for more than 7 years .Since there has been no realization in this account, the outstanding amount in US$ has not been restated after 31.3.2011 and, a sum of Rs. 1500 lacs has been provided for till year end 31.03.2013 towards its doubtful realization. No further provision is considered necessary by the management as there is every possibility of its full realisation after finality of the case pending before the courts.

(iii) The company had given an advance of Rs. 1098 Lacs to Marine Oil Gas Private limited in FY 2008-09 & 2009 -10 in respect of which no realisation could be made . No interest income has been recognised since financial year 2011-12.The company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon'ble Delhi High Court in September 2013 against this company alongwith related persons and companies of Ex-Managing Director.

(iv) Loans & Advances include an interest free loan of Rs. 1090.00 lacs, paid to Jindal Drilling & Industries Limited Employee Welfare Trust., which had been formed with the sole objective of employees welfare. The management is considering the same as good and fully recoverable.

(v) The Company has given a loan of US $ 16 million to Internovia Natural Resources FZ LLC for business purposes. Loan of Rs. 10007.32 Lacs is outstanding at the year end. Maximum loan outstanding during the year is Rs. 10007.32 Lacs.

(vi) Trade Payable include Rs. 10718.48 Lacs payable to Noble Drilling Corporation on account of Chartered Hire charges relating to Rig 'EDHOLT'. Management has withheld this amount as there are certain claims yet to be settled with the party.

Note 2.8:

a) Dues to micro and small enterprises have been determined as per information collected by the management & has been relied upon by the auditors.

b) In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

c) Figures have been rounded off to the nearest rupee.

d) Previous year's figures have been re-grouped/ re-arranged/ re-classified wherever considered necessary.

---

Mar 31, 2014

NOTE 1 - CORPORATE INFORMATION:

Jindal Drilling & Industries Limited (JDIL) was incorporated on 17th October, 1983 under the Companies Act, 1956 and has its registered office at Raigad (Maharashtra) and head office at Delhi. JDIL''s shares are listed on National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE). JDIL is engaged in providing services to entities involved in exploration of Oil & Gas.

Note 2.1

1) Aggregate amount of unquoted investements

Note 3.1

*Loan at re-stated value to Discovery Drilling Pte Ltd, Singapore, Joint venture company which is quasi equity in nature and also fully subordinated to the loan given by bank to the JV Company

NOTE 4.1 : CONTINGENT LIABILTIES

Claims against the company not acknowledged as debt :

Commitments

1. Estimated amount of contracts remaining to be executed on capital account

Estimated amount of contracts for purchase of business assets for the use of the company remaining to be executed, not provided for (net of advances) Rs. 27,60,000,00. /- (Previous Year Rs. 39,163,207/-)

2. Contingent Liabilities not provided for:

Particulars 31.03.14 (Rs.) 31.03.13 (Rs.)

(i) Guarantee issued by the Banks

(Bank Guarantee are provided under Legal/

ContractualObligations) 614,728,540 672,781,763

Guarantees issued by banks on behalf of JointVenture Companies:

Virtue Drilling Pte Ltd,Singapore NIL 1,221,750,000 (USD 22.50 Million)

(ii) Customs Demand

An Appeal pending at Hon''ble

Mumbai High Court 25,502,866 25,502,866

(A sum of Rupees sixty lacs against demand had been deposited by the company)

(iii) Service Tax Demand

An Appeal by Company pending with Appellate

Tribunal 60,394,143 60,394,143

(iv) Income Tax Demand

An Appeal pending with CIT (Appeal) related to

a) AssessmentYear2008-09 31,627,829 31,627,829

b) AssessmentYear2009-10 87,054,300 87,054,300

c) AssessmentYear2010-11 406,912,460 -

NOTE 26.2 : DISCLOSURE AS PER ACCOUNTING STANDARD - 15

(a) Gratuity:

(i) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(ii) Actuarial Valuation of Gratuity is based on the maximum liability of Rs. 10,00,000/- i.e. as provided under the Gratuity Act.

(b) Leave Encashment

(i) The obligation for leave encashment is recognised and disclosed as per the Actuarial Valuation Report.

NOTE 26.4:

All undertakings of the Company are engaged in similar activities of providing services to Oil & Gas Companies. Therefore, there is only one reportable Segment - Drilling and Related Services under Accounting Standard -17 "Segment Reporting". The Company operates in a single geographical segment - India.

NOTE 26.5:

As per Accounting Standard -18, the Company''s related parties and transactions are disclosed below:

A. List of related parties & relationships:

i. Joint Venture of Reporting Enterprise

Discovery Drilling Pte Ltd., Singapore (DDPL)

Virtue Drilling Pte Ltd., Singapore (VDPL)

ii. Key Management Personnel

Name of person Relationship

Sh. D. P. Jindal Executive Chairman

Sh.RaghavJindal ManagingDirector

NOTE 4.2: OFFICE PREMISES TAKEN ON LEASE

The Company has taken office premises on cancellable lease. These are normally renewal after expiry of lease period.

NOTE 4.3 : TRADE RECEIVABLE & LOANS AND ADVANCES

(i) An amount of Rs. 44,08,732 is recoverable from ONGC relating rig PN-3. This matter is under arbitration. Management is confident to win the case and considered good for recovery.

(ii) Trade recoverable includes a sum of US$ 14,772,408.55 (In indian rupees Rs. 658,553,972/- restated on 31-03-2011) as on 31.03.2014, which are outstanding from ONGC Ltd for more than 6 years .Since there has been no realization in this account, the outstanding amount in US$ has not been reinstated after 31.3.2011 and a sum of R 1500 lacs has been provided for till year end 31.03.2013 towards its doubtful realization. No further provision is considered necessary by the management as there is every possibility of its full realisation after finality of the case pending before the courts.

(iii) The company had given an advance of R 1098 Lacs to Marine Oil Gas Private limited in FY 2008-09 & 2009 -10 in respect of which no realisation could be made . No interest income has been recognised since financial year 2011-12.The company has initiated legal proceeding for recovery of the same by filing a civil suit in Hon''ble Delhi High Court in September 2013 against this company alongwith related persons and companies of Ex-Managing Director.

(iv) Loans & Advances include an interest free loan of Rs.14.35 Crores, paid to Jindal Drilling & Industries Limited Employee Welfare Trust, which had been formed with the sole objective of employees welfare. The management is considering the same as good and fully recoverable.

NOTE 4.4:

a) Dues to micro and small enterprises have been determined as per information collected by the management & has been relied upon bythe auditors.

b) In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

c) Figures have been rounded off to the nearest rupee.

d) Previous year''s figures have been re-grouped/ re-arranged/ re-classified wherever considered necessary.

---

Mar 31, 2013

NOTE 1

CORPORATE INFORMATION:

Jindal Drilling & Industries Limited (JDIL)was incorporated on 17th October,1983 under the Companies Act,1956 and has its registered office at Raigad (Maharashtra) and head office at Delhi. JDIL''s shares are listed on National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE). JDIL is engaged in providing services to entities involved in exploration of Oil & Gas.

NOTE 2.1

* Loans are at re-stated value to Discovery Drilling Pte. Ltd., Singapore & Virtue Drilling Pte. Ltd., Singapore, Joint Venture Companies which are quasi equity in nature and also fully subordinated to loans given by bank to the JV Company.

NOTE 3.1 : CONTINGENT LIABILITIES

Claims against the Company not acknowledged as debt :

1. Estimated amount of contracts remaining to be executed on capital account

Estimated amount of contracts for purchase of business assets for the use of the Company remaining to be executed & not provided for (net of advances) Rs. 39,163,207/- (Previous Year Rs. 5,549,075/-).

2. Contingent Liabilities not provided for:

NOTE 3.2 :DISCLOSURE AS PER ACCOUNTING STANDARD - 15

(a) Gratuity:

(i) The Employees'' Gratuity Fund Scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(ii) Actuarial Valuation of Gratuity is based on the maximum liability of Rs.10,00,000/- i.e. as provided under the Gratuity Act.

(b) Leave Encashment

(i) The obligation for leave encashment is recognised and disclosed as per the Actuarial Valuation Report.

(c) Disclosure as per Actuarial Valuation Report:

(i) Expenses recognised during the year (Under the head "Personnel Cost")

NOTE 3.4 :

All undertakings of the Company are engaged in similar activities of providing services to Oil & Gas Companies. Therefore, there is only one reportable Segment – Drilling and Related Services under Accounting Standard - 17 "Segment Reporting". The Company operates in a single geographical segment – India.

NOTE 3.5 :

As per Accounting Standard – 18, the Company''s related parties and transactions are disclosed below:

A. List of related parties & relationships:

i. Joint Venture of Reporting Enterprise

Discovery Drilling Pte Ltd., Singapore (DDPL)

Virtue Drilling Pte Ltd., Singapore (VDPL) ii. Key Management Personnel

Name of person Relationship

Sh. D.P.Jindal Executive Chairman

Sh. Raghav Jindal Managing Director

NOTE 3.6: OFFICE PREMISES TAKEN ON LEASE

The Company has taken office premises on cancellable lease. These are normally renewal after expiry of lease period.

NOTE 3.7: TRADE RECEIVABLE & LOANS AND ADVANCES

(i) An amount of Rs. 4,408,732 is recoverable from ONGC relating Rig PN-3. This matter is under arbitration. Management is confident to win the case and considered good for recovery.

(ii) Trade recoverable includes a sum of Rs. 6871.15 lac as on 31.03.2013, are outstanding for more than 5 years. Since there has been no realization in this account so far, management has considered the amount not to be reinstated and as a matter of an abundoned precaution, a sum of Rs. 1500 lac has been provided for till year end towards its doubtful realization, if any.

(iii) As on 1st April, 2012, a short term loan of Rs. 1565.79 lac was recoverable from Jaguar Overseas Limited exceeding three years. The Company had filed a winding up petition for recovery of these dues with Hon''ble Delhi High Court. As per its order, this entire outstanding is recoverable in 20 equal monthly instalment plus interest w.e.f 1st September, 2012. Now the Company is receiving monthly instalment plus interest and as on 31-3-2013, Rs. 812.77 lac remains outstanding.

(iv) The Company had given an advance of Rs.10.98 Crore to Marine Oil Gas Private limited in earlier years in respect of which no realisation could be made .The Company has initiated legal proceeding for recovery of the same. No interest income has been recognised since financial year 2011-12.

(v) Loans & Advances include an interest free loan of Rs. 15.25 Crore, paid to Jindal Drilling & Industries Limited Employees Welfare Trust., which had been formed with the sole objective of employees welfare.

NOTE 3.8:

a) Dues to micro and small enterprises have been determined as per information collected by the management & has been relied upon by the auditors.

b) In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

c) Figures have been rounded off to the nearest rupee.

d) Previous year''s figures have been re-grouped/ re-arranged/ re-classified wherevr considered necessary.

---

Mar 31, 2012

Note 1 CORPORATE INFORMATION:

Jindal Drilling & Industries Limited (JDIL)was incorporated on 17th October, 1983 under the Companies Act'1956 and has its Registered office at Raigad (Maharashtra) and head office at Delhi. JDIL's shares are listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).JDIL is engaged in providing services to entities involved in exploration of Oil &Gas.

1.1) The company has one class of equity shares having a par value of Rs. 5 each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company after distribution offal preferential amounts

1.2) Aggregate number of shares allotted other than cash during the period of five years immediately preceding March 31, 2012 11,523,804 Equity Shares of Rs. 5/-each (originally 5,761,902 Equity Shares of Rs. 10/-each) fully paid up issued for consideration other than cash in terms of scheme of Amalgamation in Financial Year 2006-07

3.1 Working capital loans are secured by hypothecation of inventories, book debts and all other current assets and first charge on fixed assets excluding specific charge, ranking pari-passu amongst working capital lending Banks.

#There is no amount due and outstanding to be credited to Investor Education & Protection Fund

* Includes Statutory dues, advances from customers, security deposits etc

(1) Additions includes a sum of Rs. Nil {previous year Rs. 1,219,307) on account of Foreign Exchange Fluctuation Loss on repayment of term Loan.

(2) Assets held under co-ownership- Furniture & Fixture NIL {previous year Rs. 5,714,532/-)

* 2) Pledged with Axis Bank Ltd., Singapore, acting as Security Trustee to the Lenders who have provided financial assistance to Discovery Drilling Pte Ltd, Singapore.

** 3) Pledged with DNBNORASA Bank, Singapore, who has provided financial assistance to Virtue Drilling Pte Ltd. Singapore.

NOTE 4.1

* Loan Rs. 601,016,696 (Previous year Rs. 8,93,033,781) at re-stated value to Discovery Drilling Pte Ltd, Singapore, Joint venture Company which is quasi equity in nature and also fully subordinated to the loan given by bankto theJ V Company

# includes primarily interest receivables on fixed deposits with bank advances to trade creditors

NOTE 5.1 : CONTINGENT LIABILTIES

Claims against the Company not acknowledged as under:

1. Estimated amount of contracts remaining to be executed on capital account

Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) Rs.. 5,549,075/- (Previous Year Rs. 44,293,705/-).

2. Contingent Liabilities not provided for:

As At As At

31st March 2012 31 st March 2011 (Rs.) (Rs.)

(i) Guarantee issued by the Banks

(Bank Guarantee are provided under Legal/ Contractual Obligation) 797,559,723 808,722,960

Guarantees issued by banks on behalf of Joint Venture Companies: -

Discovery Drilling Pte Ltd.,Singapore 1,017,400,000 891,600,000 (USD 20.00 Million) since Gurantee released by Bank Virtue Drilling Pte Ltd.,Singapore 1,119,140,000 1,003,050,000 (USD 22.00 Million)

(ii) Customs Demand

An Appeal pending at Hon'ble Mumbai High Court 25,502,866 25,502,866

(A sum of Rupees sixty lacs against demand had been deposited by the company)

(iii) Service Tax Demand

An Appeal by Company pending with Appellate Tribunal 60,394,143 60,394,143

(iv) Income Tax Demand

An Appeal pending with CIT (Appeal) related to

a) Assessment year 2007-08 NIL 39,150,756

b) Assessment Year 2008-09 31,627,829 Nil



NOTE 5.2 Disclosures as per Accounting Standard -15

(a) Gratuity:

(i) The employees' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(ii) Actuarial Valuation of Gratuity is based on the maximum liability of Rs. 10,00,000/- i.e. as provided under the Gratuity Act. (b) Leave Encashment

(i) The obligation for leave encashment is recognized and disclosed as per the Actuarial Valuation Report.

(c) Disclosure as per Actuarial Valuation Report:

NOTE 5.4:

All undertakings of the Company are engaged in similar activities of providing services to Oil & Gas Companies. Therefore, there is only one reportable Segment - Drilling and Related Services under Accounting Standard -17 "Segment Reporting". The Company operates in a single geographical segment - India.

NOTE 5.5 :

As per Accounting Standard -18, the Company's related parties and transactions are disclosed below:

Note: Figures in brackets represents previous year's amounts.

# Loans Includes Interest Receivables (Net of TDS) Rs. 21,669,470./- (Previous Year Rs. 16,070,146/-) converted into Loan.

NOTE 5.6: Office Premises taken on lease

The Company has taken office premises on cancellable lease. These are normally renewal after expiry of lease period.

* Represents Hedging Reserve created out of MTM provisioning on account of Interest Rate Swap (IRS) transactions.

NOTE 5.7: Trade Receivable & Loans and advances

(i) An amount of Rs. 4,408,732/isrecoverablefromONGCrelatingrigPN-3.Thismatterisunder arbitration. Management is confident to win the case and considered good for recovery.

(ii) Trade recoverable includes a sum ofRs. 6,585.53 lacs as on 31.03.2012, which has been withheld by ONGC in earlier years in relation to certain claims made on another body corporate which is being contested by the Company. Since there has been no realization in this account so far, management has considered the amount not to be reinstated during the year and as a matter of a abundant precaution, a sum ofRs. 700 lacs has been provided for towards its doubtful realization, if any.

(iii) The Company had given advance ofRs. 26.44 crores to two Companies i,e, Jaguar Overseas limited (JOL) and Marine Oil Gas Private limited in earlier years in respect of which no realization could be made as stipulated. The Company has initiated legal proceeding during the year and management has considered the same as good for recovery.

(iv) Loan & Advances includes an interest free loan of Rs. 15.00 Crores, paid to Jindal Drilling & Industries Limited Employees Welfare Trust during the year.

Note 5.08

The company has invested Rs. 5187.86 lacs into its Joint Venture Company Discovery Drilling Pte limited under its rights issue. Consideration was paid by means of conversion of loan into Equity Share Capital of its joint venture company. Exchange gain arising thereof has been transferred to foreign currency translation reserve as per Accounting Standard-11, "The effect of change in foreign exchange rate".

NOTE 05.09:

a) Dues to micro and small enterprises have been determined as per information collected by the management & has been relied upon by the auditors.

b) In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realized in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

c) Figures have been rounded off to the nearest rupee.

d) Previous year's figures have been re-grouped/ re-arranged/ re-classified wherever, considered necessary.

---

Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account

Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) Rs. 44,293,705/- (Previous Year Rs. 3,936,105/-).

2. Contingent Liabilities not provided for:

i) A demand raised by Custom Authority in earlier years for Rs. 25,502,866/- on repair and return, scrap and storage of the rig material taken out by ONGCL based at Nhava, Maharashtra which is being contested by the company and the Hon'ble CEGAT has already passed an order allowing Company's contention and directed the Custom Department for review. The liability, if any, would be accounted for at the time of final disposal of the case. The Company had deposited Rs. 6,000,000/-during earlier years as an advance under protest with the Collector of Custom and has been shown as advance recoverable in cash or in kind. There is no progress in the case during the year.

ii) Company has received a demand letter dated 20th May,2010 from the office of the Commissioner of Service Tax-I Mumbai (pursuant to the Show Cause Notice dated 19th September, 2008) for Rs.6,03,94,143/- and interest thereon and penalty for similar account towards availing and utilising the Cenvat credit by the Company which alleged to be not eligible. An Appeal has been filed by the Company before the Appellate Tribunal as the Company has been advised that the demand is untenable and likely to be quashed.

iii) During the year under review, Company's income tax assessment for the assessment year 2007-08 (relevant to the accounting year 2006-07) was completed. The assessing officer made disallowances aggregating to Rs.8,59,70,901/- thereby raising a demand of tax of Rs.3,91,50,756/, An appeal has been filed by the Company before the appellate authorities and is confident it will be decided in favour of the Company.

iv) Company had in earlier year, provided Corporate Guarantees to Axis Bank Limited, Singapore Branch as a Collateral security for providing Loans to Joint Venture Companies as under:

(a) US$ 20 Mn (Equivalent to Rs. 891,600,000/- if converted at the exchange rate prevailing as on 31/03/2011) loan by Axis Bank Ltd., Singapore to Discovery Drilling Pte Ltd, a Joint Venture Company, (This corporate guaranty is backed by Sub - Servient Charge on fixed assets of the Company) and

(b) US$ 22.50 Mn (Equivalent to Rs.1,003,050,000/- if converted at the exchange rate prevailing as on 31/03/2011) loan by Axis Bank Ltd., Singapore to Virtue Drilling Pte Ltd., a Joint Venture Company

3. Joint Ventures

Discovery Drilling Pte Ltd (DDPL) and Virtue Drilling Pte Ltd (VDPL) continue to be Joint Ventures of the company.

4. Sundry Debtors

(i) Last year, Rs. 1,39,38,188/-with regard to following two cases under arbitration were considered good of recovery as the arbitration cases were pending.

(a) With regard to rig Ed-Holt (Rs.95,29,456/-) was settled during the year, partially (for Rs.52,21,962/-) in favour of the Company and partially (for Rs.43,07,494/- against it. The Company has received Rs.138 Lacs (Rs.52,21,962/- along with interest since 1994).The remaining amount of Rs.43,07,494/- has been written off during the year under review.

(b) With regard to rig PN3 (Rs. 4,408,732/-), the matter was kept in abeyance during the whole year. However since the management is confident to win the case, this has been shown as considered good for recovery.

(ii) lnearlieryear,asumofUS$14,772,408.55(in Indian Rupee re-stated on 31-3-2011 atRs. 658,553,972/-) waswithheld by ONGC in relation to certain claim made on another body corporate, which is being contested by the company. Based on the legal opinion obtained, the company is not liable for the aforesaid amount, and therefore the same has been considered good and recoverable. The Company has initiated Arbitration proceedings against ONGC.

5. (i) Confirmation for one of the loans of Rs. 1087 Lacs outstanding as on 31st March, 2011 has not been received so far.

(ii) The identification of Micro, Small & Medium Sized Enterprise Suppliers (MSMES) is based on management's knowledge of their status.

6. In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

7. Disclosures as required by Accounting Standards referred to in sub-section (3C) of the section 211 of the Companies Act, 1956 (to the extent applicable and mandatory):

7.1 The amount of Exchange Difference (Net):

a) The Foreign Exchange Loss (Net) Rs. 68,299,178/- (Previous Year Rs.73,970,541/-) resulting from settlement, restatement of foreign exchange transactions and losses on account of mark to market adjustments on outstanding derivative instruments (if any) has been adjusted in the Profit & Loss Account.

7.2 Disclosure as per Accounting Standard -15

(a) Gratuity:

(i) The employees' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(ii) Actuarial Valuation of Gratuity is based on the maximum liability of Rs.10,00,000/- i.e. as provided under the Gratuity Act.

(b) Leave Encashment

The obligation for leave encashment is recognised and disclosed as per the Actuarial Valuation Report.

7.3 All undertakings of the Company are engaged in similar activities of providing services to Oil & Gas Companies. Therefore, there is only one reportable Segment - Drilling and Related Services under Accounting Standard -17 "Segment Reporting." The Company operates in a single geographical segment-India.

7.4 As per Accounting Standard -18, the Company's related parties and transactions are disclosed below:

A. List of related parties & relationships:

i. Joint Venture of Reporting Enterprise (refer Note No.3 above)

Discovery Drilling Pte Ltd., Singapore (DDPL)

Virtue Drilling Pte Ltd., Singapore (VDPL)

ii. Key Management Personnel

Name of person Relationship

Sh. Naresh Kumar Managing Director (up to 24th September, 2010)

Sh.RaghavJindal Managing Director

Sh. I. N. Chatterjee WholeTime Director (up to 11th May, 2010)

iii. Relative of Key Management Personnel

Sh. Manav Kumar Son of Sh. Naresh Kumar, Managing Director

(up to 24th September, 2010)

7.5 Office Premises taken on lease

The Company has taken office premises on cancellable lease. These are normally renewed after expiry of lease period.

8. Additional Information pursuant to the provisions of paragraph 3 & 4 of Part II of Schedule VI to the Companies Act, 1956 (to the extent applicable). Since the Company does not have manufacturing activity, the additional information regarding capacity and quantitative details are not given.

9. Figures have been rounded off to the nearest rupee.

10. Previous year's figures have been re-grouped/ re-arranged/ re-classified wherever considered necessary.

Schedule 1 to 18 are annexed to and form an integral part of the Balance Sheet as at 31 st March, 2011 and Profit & Loss accounts for the year ended on that date.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account Estimated amount of contracts remaining to be executed on capital account, not provided for Rs.3,936,105/- (Previous Year Rs. 31,524,954/-).

2. Contingent Liabilities

Contingent Liabilities not provided for:

i) A demand raised by Custom Authority in earlier years for Rs. 25,502,866/- on repair and return, scrap and storage of the rig material taken out by ONGCL based at Nahva, Maharashtra which is being contested by the company and the Honble CEGAT has already passed an order allowing Companys contention and directed the Custom Department for review. The liability, if any, would be accounted for at the time of final disposal of the case. The Company has deposited Rs. 6,000,000/-during earlier years as an advance under protest with the Collector of Custom and has been shown as advance recoverable in cash or in kind. There is no progress in the case during the year.

ii) The company received a notice from Deputy Collector, Stamp Valuation Cell, Mehsana levying an additional stamp duty of Rs.1,699,950/- and a penalty thereon during the financial year 2006-07, pertaining to a property transaction done by the company in the earlier year, against which the company had filed a petition in the Honble Gujarat High Court. The Honble High Court has since quashed the demand notice of Dy. Collector, Stamp Duty, Valuation Cell, Mehsana.

iii) An additional Income Tax liability of Rs. 3,671,185/- was raised by the ITO, for the assessment year 2005-06 for which Company filed an appeal before CIT(A). The Appeal was disallowed. The Company filed Appeal before ITAT. The same has been allowed and the demand has been vacated by the ITAT vide its order dated 31st March, 2010. However a penalty of Rs. 3,151,230/- u/s 271(1)(c) has been imposed by the office of DCIT The company expects to get it vacated. Hence no provision has been made.

iv) The Company had in earlier year, provided Corporate Guarantees to Axis Bank Limited, Singapore Branch as a Collateral security for providing Loans to Joint Venture Companies as under:

(a) US$ 20 Mn ( Equivalent to Rs. 898,000,000/- if converted at the exchange rate prevailing as on 31/03/2010) loan by Axis Bank Ltd., Singapore to Discovery Drilling Pte Ltd, a Joint Venture company, (This corporate guaranty is backed by Sub - Servient Charge on fixed assets of the Company) and

(b) US$ 22.50 Mn (Equivalent to Rs. 1,010,250,000/- if converted at the exchange rate prevailing as on 31/03/2010) loan by Axis Bank Ltd., Singapore to Virtue Drilling Pte Ltd., a Joint Venture company.

3. Joint Ventures

(i) Discovery Drilling Pte Ltd (DDPL) and Virtue Drilling Pte Ltd (VDPL) continue to be Joint Ventures of the company.

4. Sundry Debtors

(i) Sundry Debtors includes an amount of Rs. 13,938,188/- (Previous Year Rs. 13,938,188/-) under arbitration with ONGCL. These debts consist of two cases first for Rig PN3 of Rs. 4,408,732/- and second for Ed-Holt of Rs. 9,529,456/-. In case of Rig PN3 the matter in arbitration was kept in abeyance during the whole year. In the matter of Ed-Holt case both parties, ONGC & the Company, have gone in appeal with the single judge of the Mumbai High Court, since, part of the award was passed by the arbitrator in favour of the company and part of the award in favour of ONGC. However management is confident to win the cases therefore it is considered to be good for recovery.

(ii) In earlier year, a sum of Rs. 663,281,144/-(reinstated value as on 31-3-2010 of US$ 14,772,408.55) was withheld by ONGC in relation to certain claim made on another body corporate, which is being contested by the company. Based on the legal opinion obtained, the company is not liable for the aforesaid amount, and therefore the same has been considered good and recoverable. The Company has initiated Arbitration proceedings in the matter.

5. The identification of Micro, Small & Medium Enterprise Suppliers (MSMES) is based on managements knowledge of their status.

6. In the opinion of the Management and to the best of their knowledge and belief, the value of current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

Note:

a) Including allowances but excluding contribution towards retirement benefits, since it is determined on the basis of actuarial valuation for all employees in a consolidated manner including managerial employees.

b) Computation of net profit in accordance with the relevant provisions of the Companies Act, 1956 has not been disclosed as no commission is payable to the managing director.

7. Disclosures as required by Accounting Standards referred to in sub-section (3C) of the section 211 of the Companies Act, 1956 (to the extent applicable and mandatory):

7.1 The amount of Exchange Difference (Net):

a) The Foreign Exchange Loss (Net) of Rs. 73,970,541 /- (Previous Year Rs. 61,821,090/-) resulting from settlement, restatement of foreign exchange transactions and losses on account of mark to market adjustments on outstanding derivative instruments has been adjusted in the Profit & Loss Account.

7.2 Disclosure as per Accounting Standard (AS) 15:

(a) The Accounting Standard 15 (Revised 2005) having been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

(b) Gratuity:

(i) The employees gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(ii) Actuarial Valuation of Gratuity is based on the maximum liability of Rs.3,50,000/,

(c) Leave Encashment

The obligation for leave encashment is recognised and shown as per the Actuarial Valuation Report, as required by AS 15 (revised 2005).

7.3 Although the Company is operating four undertakings, all those are engaged in the similar business of providing services to oil & gas companies. Therefore, there is only one reportable segment- Drilling and Related Services. Accordingly, there is no disclosure of segmental reporting in terms of "Accounting Standard-17 of Segment Reporting".

7.4 As per Accounting Standard -18, the Companys related parties and transactions are disclosed below: A. List of related parties & relationships,

i. Joint Venture of Reporting Enterprise (refer Note No.3 above.) Discovery Drilling Pte Ltd., Singapore (DDPL) Virtue Drilling Pte Ltd., Singapore (VDPL)

ii. Key Management Personnel

Name of person Relationship

Sh.Naresh Kumar Managing Director Sh.RaghavJindal Managing Director Sh.lNChatterjee Whole Time Director

iii. Relative of Key Management Personnel

Sh.Manav Kumar SonofSh. Naresh Kumar

7.5 Office Premises taken on lease

The Company has taken office premises on cancellable lease. This lease agreement is for a period of three years.