A. In the opinion of the board, the current assets, loans and advances
 are approximately of the value stated if realized in the ordinary
 course of business. The provision for all known liabilities are
 adequate and not in excess of the amount reasonably necessary.
 
 B.  Other Information pursuant to paragraphs 3, 4, 4A, 4B and 4D of
 Para-II of the Schedule VI is given as under so far as applicable to
 the Company.
 
 (a) The Company has not employed any person drawing remuneration of
 Rs.5,00,000/- per month or more or Rs.60,00,000/ - per annum.
 
 C.  Considering nature of activity it is not possible to ascertain the
 elements of Capital Commitment Expenditure to be executed on capital
 account.
 
 D.  Contingent Liabilities: i.  Bank Guarantees
 
 The company has given counter guarantees aggregating to Rs. 1072.70
 Lacs(31st March 2010 Rs. 1767.31 Lacs) to banks as at 31st March 2011.
 
 ii.  Other Contingent Liabilities not provided for;
 
 Name of Statute                   Amount (Rs. Lacs)  Amount (Rs. Lacs)
                                     31.03.2011        31.03.2010
 
 Income Tax Act                         0.00             58.95
 
 Service tax                            4.35              4.35
 
 E.  Figures are rounded off to the nearest rupee and the previous year
 figures are regrouped wherever necessary.
 
 F.  Segment Reporting
 
 The Company is engaged in the service activity i.e. service activity
 related to oil and gas operations having mainly domestic income and
 there are no separate reportable primary and secondary segments as per
 Accounting Standard 17 - “Segment Reporting” issued by the Council of
 the Institute of Chartered Accountants of India.
 
 G.  Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date,
 if there is any indication of impairment based on internal/external
 factors. An impairment loss will be recognised wherever the carrying
 amount of an asset exceeds its estimated recoverable amount. The
 recoverable amount is greater of the assets’ net selling price and
 value in use. In assessing the value in use the estimated future cash
 flows are discounted to the present value at the weighted average cost
 of capital. During the year there are no impairment losses on assets of
 the Company.
 
 H. The Company during the Financial Year has received Rs. 9,78,75,000/-
 being balance 75% value of 22,50,000 Convertible Warrants issued during
 previous year. The said allottees on full payment of warrant have
 exercised the option of conversion to equity shares on 17.01.2011. On
 conversion Rs. 2,25,00,000 is transferred to Issued Capital being issue
 of 22,50,000 equity shares of Rs. 10/- each and Rs. 10,80,00,000/- is
 transferred to Share Premium account being Share premium of Rs. 48/-
 per share.
 
 The Company upto 31st March 2011, has utilized the total amount of Rs.
 20,30,00,000/- received on the preferential allotment towards the
 capital projects for which the preferential warrants were issued.
 
 I.  As per Accounting Standard - 18, the disclosures of transactions
 with the related parties as defined in the Accounting Standard are
 given below:
 
 (i) List of related parties where control exists and related parties,
 with whom transactions have taken place and relationships
 
 Subsidiary Company
 
 Deep Energy LLC, USA
 
 Deep Natural Resources Limited
 
 Prabha Energy Private Limited
 
 Enterprises significantly influenced by KMP or RKMP
 
 Deep Methane Private Limited
 
 Smt. Prabhaben Kantilal Velji Savla Charitable Trust
 
 Prabhaben Shantilal Savla Charitable Trust
 
 Key Management Personnel
 
 Mr. Paras Savla Mr. Rupesh Savla Mr. Dharen Savla Mr. Prabodh Baruah
 Mr. Vijay Shah Mr. Harish Bhinde
 
 Relative of Key Management Personnel (RKMP)
 
 Mr. Manoj Savla Mrs. Mita M. Savla Mrs. Priti P. Savla Mrs. Sheetal R.
 Savla Mrs. Avani Savla
 
 J.  Current Liability related to Micro, Small and Medium Enterprises
 
 The Company has not received information from vendors regarding their
 status under the Micro, Small and Medium Enterprises Development Act,
 2006 and hence disclosure relating to amount unpaid to as at year end
 together with interest paid /payable under this Act have not been
 given.
 
 The Company is making efforts to get the confirmation from the vendors
 as regards their status under the Act.