Aban Offshore

As at    As at
                                     31st March 2009   31st March, 2008
                                           Rupees             Rupees
 
 1. Contingent liabilities not provided for
 
 a.  Guarantees given by banks on behalf of 
 the Company                           127,94,33,297     122,59,69,408
 b.  Corporate Guarantee given by the Company 
 for a subsidiary
                                     2,416,44,80,000   2,283,41,80,000 
 of Companys foreign subsidiary
 c.  Capital commitments not provided for41,33,18,523     11,46,97,231
 d.  Indemnity obligation relating to a
 Novation Agreement                         75,00,000        75,00,000
 e.  Letter of Credit                    21,35,39,861            -
 
 2. Related Party disclosure: Enterprise where control exists
 
 A. Subsidiary Companies (Wholly owned subsidiaries)
 
 Aban Energies Limited, India Aban Holdings Pte Ltd, Singapore
 
 B. Subsidiaries of Aban Holdings Pte Ltd
 
 Aban Singapore Pte Ltd, Singapore Aban 7 Pte Ltd, Singapore Aban 8 Pte
 Ltd, Singapore Aban Abraham Pte Ltd, Singapore Aban Pearl Pte
 Ltd,Singapore Aban International Norway AS, Norway Sinvest AS, Norway
 DDI Holding AS, Norway Deep Drilling Invest Pte Ltd, Singapore Deep
 Drilling 1 Pte Ltd, Singapore Deep Drilling 2 Pte Ltd, Singapore Deep
 Drilling 3 Pte Ltd, Singapore Deep Drilling 4 Pte Ltd, Singapore Deep
 Drilling 5 Pte Ltd, Singapore Deep Drilling 6 Pte Ltd, Singapore Deep
 Drilling 7 Pte Ltd, Singapore Deep Drilling 8 Pte Ltd, Singapore Beta
 Drilling Pte Ltd , Singapore Venture Drilling Pte Ltd, Singapore
 Sinvest (Cyprus) Ltd,Cyprus
 
 C. Other related parties with whom the company had transactions
 
 a.  Joint Venture Operator -
 
 Prize Petroleum Limited (See Note 16 and 23)
 
 b.  Key Management personnel
 
 (i) Mr. Reji Abraham - Managing Director
 
 (ii) Mr. P Venkateswaran - Deputy Managing Director
 
 (iii) Mr. C P Gopalkrishnan - Deputy Managing Director and Secretary
 
 13. SEGMENT REPORTING
 
 A.  Primary Segment
 
 The company’s primary segments are Offshore Oil Drilling and Production
 services and Wind Power generation. The above business segments have
 been identified considering the nature of services rendered and the
 internal financial reporting system. Income and Expenses have been
 accounted for based on their relationship to the operating activities
 of the segment
 
 B.  Secondary Segment
 
 Substantial Assets of the Company are Rigs/Drillship, which are mobile
 assets and can operate across the world, in view of which geographical
 segment is not considered.
 
 3.  Loans and Advances include loan to a Deputy Managing Director of
 the Company who was an officer at the time of taking the loan
 Rs.9,15,000/- (previous year Rs.14,55,000/-). Maximum amount
 outstanding during the the year Rs. 14,55,000/-(Previous Year
 Rs.18,75,000/-).
 
 4.  The Company has terminated the joint Operating Agreement with
 Prize Petroleum Limited as at 31-03-2008 subject to certain formalities
 relating to termination which are still under process.
 
 5.  The Company has instituted Employees Stock Option Scheme - 2005
 duly approved by the shareholders in the Extraordinary General Meeting
 of the Company held on 23rd April 2005 As per the scheme, the
 compensation committee of the board evaluate the performance and other
 criteria of employees and approves the grant of option. These options
 vest with employees over a specified period subject to fulfillment of
 certain conditions. Upon vesting, employees are eligible to apply and
 secure allotment of Company’s share at the prevailing market price on
 the date of grant of option.
 
 The Securities Exchange Board of India (SEBI) issued the Employees
 Stock Option scheme and Employee Stock purchase scheme Guidelines in
 1999, applicable to stock option schemes established on or after June
 19, 1999. Under these Guidelines, the excess of the market price of the
 underlying equity shares as of the date of the grant over the exercise
 price of the option is to be recognised and amortized on a straight-
 line basis over the vesting period
 
 The Company has not recorded any Deferred Compensation Expenses, as the
 exercise price as equal to the market value as defined by SEBI of the
 underlying Equity shares on the grant date. Excess of exercise price
 over the nominal value of equity shares issued under ESOS has been
 credited to securities premium account Rs. 30,98,805/- (Previous year
 Rs. 38,77,013/-)
 
 The details of option granted are given below:
 
 Maximum number of options that may be granted under the scheme is
 18,44,000 numbers of equity shares of Rs.2/- each - Options granted
 during the year - Nil (upto previous year 2,68,200 Equity shares of
 Rs.2/- each) - Options lapsed during the year - 2880 (upto previous
 year 4,210 Equity shares of Rs.2/- each) - Options exercised during the
 year 4,940 number of equity shares of Rs.2/- each (upto previous year
 59,710 Equity shares of Rs.2/- each) - Outstanding at the end of the
 year 1,96,460 number of equity shares of Rs.2/- each (upto previous
 year 2,04,280 Equity shares of Rs.2/- each) - Options yet to be granted
 under the scheme 15,82,890 number of equity shares of Rs.2/- each.
 
 6.  The Company had issued 1161 unsecured unrated zero coupon Foreign
 Currency Convertible Bonds (FCCB) of Japanese Yen 10,000,000 each
 aggregating to Japanese Yen 11,610,000,000 (Rs.428,49,22,220/-) in
 April 2006.
 
 The Bondholder has an option to convert these bonds into Equity shares
 of Rs.2/- each of the Company at a conversion price on or after 19th
 April 2007 and upto the close of the business on the 8th April 2011.
 The conversion price has been fixed as Rs.2,789.04 per Equity shares of
 Rs.2/- each. Till 31st March 2009, 620 Bonds aggregating to Japanese
 Yen 6200 million have been converted into 8,51,055 Equity shares of
 Rs.2/- each at a conversion price of Rs.2,789.04. As a result of this
 conversion, the share capital of the company has increased by
 Rs.17,02,110/- and the securities premium account has gone up by
 Rs.2,37,19,24,326. After conversion, 541 Bonds are outstanding as at
 31st March 2009 aggregating to 5410 Million Japanese Yen
 (Rs.278,75,02,500). The Company has an option to redeem the bonds at
 their accredited principal amount in whole and not in part at any time
 on or after 14th April 2009 and on or prior to 8th April 2011 subject
 to certain terms and conditions. No interest
 
 accrues or is payable on the bonds unless wilful default is made in
 respect of any payment in which case the overdue sum shall bear
 interest at the rate of 4% per annum from the due date. Unless
 previously redeemed, converted or repurchased and cancelled, the
 Company will redeem each bond at 121.811% of its principal amount on
 15th April 2011, being the Maturity date of the Bond. Excess of
 conversion price over the nominal value of equity shares issued on
 conversion of Bonds have been credited to securities premium account
 Rs.Nil (Previous year Rs. 237,19,24,326/-)
 
 7. In accordance with the Principles of prudence and other applicable
 guidelines as per Accounting Standards notified by the Companies
 (Accounting Standard ) Rules , 2006 and considering the events
 occurring after the Balance Sheet date, the Company has recognised an
 amount of Rs.30 crores in the profit and loss account in respect of
 derivative contracts outstanding as at 31st March 2009. (Previous year
 Rs. 6.96 crores). The same has been included in the amount shown under
 Schedule - 14 “Loss on cancellation of Forward contracts, Options/
 Swaps / Derivatives (Net)”.
 
 Note (a): The Company’s interests in the joint venture - Frontier
 Offshore Exploration (India) Limited (formerly known as Frontier Aban
 Drilling (India) Ltd) The Company has ceased to have joint control over
 Frontier Offshore Exploration (India) Limited (Formerly known as
 Frontier Aban Drilling (India) Ltd) However the Company has provided
 for Dimunition in value of this long term investment considering the
 state of affairs of the Venture Company.
 
 Note (b): The Company has terminated the joint Operating Agreement with
 Prize Petroleum Limited as at 31-03-2008 subject to certain formalities
 relating to termination which are still under rocess during the year.
 
 VIII. Basis used to determine the expected rate of return on plan
 assets
 
 The expected rate of return on plan assets is based on the current
 investments strategy and market scenario.  The above information is
 certified by the Actuary.
 
 8.  There are no Micro, Small and Medium Enterprises to whom the
 Company owes dues, which are outstanding for more than 45 days at the
 balance sheet date. The information regarding Micro, Small and Medium
 Enterprises has been determined to the extent such parties have been
 identified on the basis of data available with the Company.
 
 9.  Audit fees include Rs. 8,82,400/- for special purpose Audit
 carried out towards investments in shares/loans to foreign subsidiaries
 (previous year Rs. 7,80,060/-)
 
 10.  Previous year’s figures are re-grouped/re-arranged wherever
 necessary, to conform to the current year’s presentation.