1 BASIS OF PREPARATION
 
 These abridged revised financial statements have been prepared on the
 basis of the complete set of revised financial statements for the year
 ended March 31, 2012 in accordance with the requirements of Rule 7A of
 the Companies (Central Government''s) General Rules and Forms, 1956.
 
 2[6] FOREIGN CURRENCY COMPULSORY CONVERTIBLE BONDS
 
 The Company had issued FCCBs of USD 115 million on June 15, 2010 and
 USD 147 million on July 9, 2010 which were convertible into 38,833,443
 and 45,016,372 equity shares or into 253,813 and 294,224 GDSs at a
 fixed price of Rs. 138 per share and Rs. 153 per share at the option of the
 holders of the FCCBs until their maturity dates of June 15, 2028 and
 September 30, 2028 respectively. The bonds bear interest of 5% per
 annum, subject to certain conditions, on the outstanding principal
 amount of the bonds from (and including) January 1, 2016 payable semi-
 annually.
 
 During the year, the terms of the bonds have been amended whereby the
 above bonds have now become compulsorily convertible into equity shares
 / GDSs on the same terms and conditions as above.
 
 3[7(ii)(a)&(c)] REPAYMENT AND OTHER TERMS:
 
 a) Secured redeemable non - convertible debentures (NCDs) of Rs.
 105/- each consists of : 16,918,250 (Previous year 16,918,250) - 12.50%
 NCDs of Rs. 105/- each amounting to Rs. 177.64 crore (Previous year Rs.
 177.64 crore) with repayments starting from December 2014 ending in
 June 201 8.
 
 700,000 (Previous year 700,000)- 12.5% NCDs, of Rs. 100 each on private
 placement basis partly paid up at Rs. 93.86 per debenture amounting to Rs.
 6.57 crore (Previous year Rs. 6.57 crore), with repayments starting from
 December 2014 ending in June 2018.
 
 The Hon''ble High Court of Gujarat has, in response to the Company''s
 petition, ruled vide its orders dated August 04, 2006 and August 1 1,
 2006 that the interest on certain categories of debentures should be
 accounted on cash basis. In accordance with the said petition / order,
 funded / accrued interest liabilities amounting to Rs. 428.24 crore
 (Previous year Rs. 355.95 crore) as at March 31, 2012 have not been
 accounted for. This amount carries interest rate ranging from 5% to
 12.50% and are repayable from December 2014 ending in March 2027
 
 c) The MRA dated December 17, 2004 entered pursuant to Corporate Debt
 Restructuring Scheme, gives an option, subject to consent of its
 lenders, to the Company to prepay funded interest loan (FS Loan) of Rs.
 2,471.63 crore (Previous year Rs. 2,471.63 crore) at any point in time
 during their term at a reduced amount computed in accordance with the
 mechanism provided in the MRA or in full, by one bullet payment in
 March, 2026. Interest on FS loan was not payable if FS loan was prepaid
 by April 24, 2012 and therefore considering the plans to prepay FS
 loan, interest liability on FS was earlier considered as a contingent
 liability and now recognised as loan as the same is funded. The
 Company''s proposal to exit from Corporate Debt Restructuring (CDR)
 was approved by CDR Empowered group and recommended to CDR Core Group
 for final approval during the year. The revised terms proposed for CDR
 exit, inter alia, includes an option to prepay funded interest on FS
 Loan amounting to Rs. 684.08 crore as at March 31, 2012 at a reduced
 amount at any point of time during its term and accelerated repayment
 schedule of FS Loan with instalments during March 2021 to March 2026.
 The repayment terms of funded interest on FS loan is in 40 equal
 quarterly instalments beginning June 30, 2015 as per MRA and there is
 no change in these terms as per CDR exit proposal.
 
 Similarly, Rs. 206.88 crore (Previous year Rs. 206.88 crore) due to a
 lender (other funded interest loan) is payable by a single bullet
 payment in 2031 with an option to prepay this amount as per the agreed
 terms at a reduced amount at any point of time during its term.
 
 In order to reflect substance of the above, in terms of presentation in
 balance sheet, an amount of Rs. 2,260.35 crore (Previous year Rs. 2,088.06
 crore) {including Rs. 1,720.28 crore of FS loan (Previous year Rs. 1,909.88
 crore ), Rs. 364.87 crore of funded interest on FS Loan (Previous year Rs.
 Nil) and Rs. 175.20 crore of other funded interest loan (Previous year Rs.
 178.18 crore)} being the amount not payable as at Balance Sheet date
 has been presented as deduction from the funded interest facilities
 under secured loans/borrowings to reflect the present obligation on the
 balance sheet date.  The changes in the present obligation of the said
 loans subsequent to capitalisation of the Refinery Project till the
 date of balance sheet is treated as finance cost/exceptional item in
 the statement of profit and loss.