1.1. Accounting Convention
 
 The financial statements are prepared on accrual basis of accounting
 under historical cost convention in accordance with generally accepted
 accounting principles in India and the relevant provisions of the
 Companies Act, 1956 including accounting standards notified there
 under.
 
 1.2. Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions which affect the reported amount of assets, liabilities,
 revenues and expenses of the reporting period. The difference between
 the actual results and estimates are recognized in the period in which
 the results are known or materialized.
 
 1.3. Inventories
 
 (i) Raw materials and Finished products are valued at cost or net
 realizable value, whichever is lower. Finished products include excise
 duty and royalty wherever applicable.
 
 (ii) Stock in process is valued at cost or net realizable value,
 whichever is lower. It is valued at cost where the finished products in
 which these are to be incorporated are expected to be sold at or above
 cost.
 
 (iii) Stores and spares and other material for use in production of
 inventories are valued at weighted average cost or net realizable
 value, whichever is lower. It is valued at weighted average cost where
 the finished products in which they will be incorporated are expected
 to be sold at/or above cost.
 
 (iv) Surplus / Obsolete Stores and Spares are valued at cost or net
 realizable value, which ever is lower.
 
 (v) Surplus / Obsolete Capital Stores, other than held for use in
 construction of a capital asset, are valued at lower of cost or net
 realizable value.
 
 1.4. Depreciation/Amortization
 
 I.  Depreciation on Fixed Assets other than those mentioned below is
 provided in accordance with the rates as specified in Schedule XIV of
 the Companies Act, 1956, on straight line method (SLM) on pro-rata
 basis (monthly pro-rata for bought out assets).
 
 (i) Assets costing up to Rs.5,000/- are depreciated fully in the year
 of capitalization.
 
 (ii) Bunk Houses are amortized on assumption of five years life.
 
 (iii) Oil and Gas Pipelines including other related facilities are
 depreciated @ 3.17% per annum on SLM basis based on useful life of 30
 years.
 
 (iv) Computers at the residence of the employees are depreciated @
 23.75% per annum on SLM basis. Furniture, Electric Equipments and
 Mobiles provided for the use of employees are depreciated @ 15% Per
 annum on SLM basis.
 
 (v) Cost of the leasehold land not exceeding 99 years is amortized over
 the lease period.
 
 (vi) Depreciation due to price adjustment in the original cost of fixed
 assets is charged prospectively.
 
 (vii) Capital expenditure on the assets (enabling facilities), the
 ownership of which is not with the Company is charged off to Revenue.
 
 (viii) Software / Licenses are amortized in 5 years on straight line
 method.
 
 (ix) No depreciation is being charged on ROU being perpetual in nature.
 
 (x) After impairment of assets, if any, depreciation is provided on the
 revised carrying amount of the assets over its remaining useful life.
 
 II.  Capital assets installed at the consumers premises on the land
 whose ownership is not with the company, has been depreciated on SLM
 basis in accordance with the rates as specified in Schedule XIV of the
 Companies'' Act, 1956.
 
 1.5. Revenue recognition
 
 (i) Sales are recognized on transfer of significant risks and rewards
 of ownership to the buyer, which generally coincides with the delivery
 of goods to customers. Sales include excise duty but exclude value
 added tax. Any retrospective revision in prices is accounted for in the
 year of such revision.
 
 (ii) Income from Consultancy/Contract Services, if any, is recognized
 based on Proportionate Completion Method.
 
 (iii) Dividend income is accounted for when the right to receive it is
 established.
 
 (iv) Claims (including interest on delayed realization from customers)
 are accounted for, when there is no significant uncertainty that the
 claims are realizable.
 
 (v) Liability in respect of MGO of Natural gas is not provided for
 where the same is secured by MGO recoverable from customers.
 Payments/receipts during the year on account of MGO are adjusted on
 receipt basis.
 
 (vi) Minimum charges relating to transportation of LPG are accounted
 for on receipt basis.
 
 (vii) Prepaid expenses and prior period expenses/income up to
 Rs.1,00,000/- in each case are charged to relevant heads of account of
 the current year.
 
 1.6. Fixed Assets
 
 (a) Fixed Assets are valued at historical cost on consistent basis and
 are net of refundable taxes & levies wherever applicable. All costs
 relating to acquisition of fixed assets till commissioning of such
 assets are capitalized. In the case of commissioned assets where final
 payment to the Contractors is pending, capitalization is made on
 provisional basis, including provisional liability pending approval of
 Competent Authority, subject to necessary adjustment in cost and
 depreciation in the year of settlement.
 
 (b) Machinery spares, which can be used only in connection with an item
 of fixed asset and their use is expected to be irregular, are
 capitalized with the cost of that fixed asset and are depreciated fully
 over the remaining useful life of that asset.
 
 1.7. Intangible Assets
 
 Intangible assets like software, licenses and right-of-use of land
 including sharing of ROU with other entities which are expected to
 provide future enduring economic benefits are capitalized as Intangible
 Assets.
 
 1.8. Capital Work in Progress
 
 (a) Crop compensation is accounted for under Capital Work-in-Progress
 on the basis of actual payments/estimated liability, as and when work
 commences where ROU is acquired.
 
 (b) The capital work in progress includes material in Transit/ value of
 materials / equipment/Services, etc. received at site for use in the
 projects.
 
 (c) Pre-project expenditure relating to Projects which are considered
 unviable / closed is charged off to Revenue in the year of
 declaration/closure.
 
 1.9. Expenses Incurred During Construction Period
 
 All revenue expenditure incurred during the year, which is exclusively
 attributable to acquisition / construction of fixed assets, is
 capitalized at the time of commissioning of such assets.
 
 1.10.  Foreign Currency Translation
 
 (i) Transactions in foreign currency are accounted at the exchange rate
 prevailing on the transaction date.
 
 (ii) Monetary items (such as Cash, Receivables, Loans, Payables, etc.)
 denominated in foreign currencies, outstanding at the year end, are
 translated at exchange rates (BC Selling Rate for Payables and TT
 Buying Rate for Receivables) prevailing at yearend.
 
 (iii) Non monetary items (such as Investments, Fixed Assets, etc),
 denominated in foreign currencies are accounted at the exchange rate
 prevailing on the date of transaction(s).
 
 (iv) Exchange differences (loss), arising from translation of foreign
 currency loans relating to fixed assets to the extent regarded as an
 adjustment to interest cost are treated as borrowing cost.
 
 (v) Any gains or loss arising on account of exchange difference either
 on settlement or on translation is accounted for in the Profit & Loss
 account except in case of long term foreign currency monetary items
 relating to acquisition of depreciable capital asset (other than
 regarded as borrowing cost) in which case they are adjusted to the
 carrying cost of such assets and in other cases, accumulated in
 Foreign Currency Monetary item Translation Difference Account in the
 Financial statements and amortized over the balance period of such long
 terms asset or liability, by recognition as income or expenses in each
 of such period.
 
 1.11.Grants
 
 In case of depreciable assets, the cost of the assets is shown at gross
 value and grant thereon is taken to Capital Reserve which is recognised
 as income in the Profit and Loss Account over the useful life period of
 the asset.
 
 1.12.  Investments
 
 Investments are classified into current and long term investments.
 Current investments are stated at lower of cost or market value.  Long
 term investments are stated at cost and provision for diminution in
 value is made only if such decline is other than temporary in the
 opinion of management.
 
 1.13.  Employees Benefits
 
 (i) All short term employee benefits are recognized at the undiscounted
 amount in the accounting period in which they are incurred.
 
 (ii) The Company''s contribution to the Provident Fund is remitted to a
 separate trust established for this purpose based on a fixed percentage
 of the eligible employee''s salary and charged to Statement of Profit
 and Loss. Further, the company makes provision as per actuarial
 valuation towards any shortfalls fund assets to meet statutory rate of
 interest in the future period, to be compensated by the company to the
 Provident Fund Trust.
 
 (iii) Employee Benefits under Defined Benefit
 
 Plans in respect of leave encashment, compensated absence, post
 retirement medical scheme, long service award and other terminal
 benefits are recognized based on the present value of defined benefit
 obligation, which is computed on the basis of actuarial valuation using
 the Projected Unit Credit method. Actuarial liability in excess of
 respective plan assets is recognized during the year.
 
 (iv) Provision for gratuity as per actuarial valuation is funded with a
 separate trust.
 
 1.14.  Borrowing Cost
 
 Borrowing cost of the funds specifically borrowed for the purpose of
 obtaining qualifying assets and eligible for capitalization along with
 the cost of the assets, is capitalized up to the date when the asset is
 ready for use after netting off any income earned on temporary
 investment of such funds.
 
 1.15.Taxes on Income
 
 Provision for current tax is made as per the provisions of the Income
 Tax Act, 1961.  Deferred Tax Liability / Asset resulting from ''timing
 difference'' between book and taxable profit is accounted for
 considering the tax rate and laws that have been enacted or
 substantively enacted as on the Balance Sheet date. Deferred Tax Asset,
 if any, is recognized and carried forward only to the extent that there
 is virtual certainty that the asset will be realized in future.
 
 1.16.R&D Expenditure
 
 All expenditure, other than on capital account, on research and
 development are charged to Profit and Loss Account.
 
 1.17.Impairment
 
 The Carrying amounts of assets are reviewed at each Balance Sheet date.
 I n case there is any indication of impairment based on Internal
 /External factors, an Impairment loss is recognized wherever the
 carrying amount of an asset exceeds its recoverable amount.
 
 1.18.Provisions, Contingent Liabilities, Contingent Assets & Capital
 Commitments
 
 (i) 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.  Contingent Assets are neither recognized nor disclosed
 in the Financial statements. Contingent liabilities exceeding Rs. 5
 Lacs in each case are disclosed by way of notes to accounts except when
 there is remote possibility of any out flow in settlement..
 
 (ii) Estimated amount of contracts remaining to be executed on Capital
 accounts are disclosed in each case above Rs.5 Lacs.
 
 1.19.Exploration and Development Costs:-
 
 i) The Company follows Successful Efforts Method for accounting of Oil
 & Gas exploration and production activities, which includes:-
 
 a.  Survey Costs are recognized as revenue expenditure in the year in
 which these are incurred.
 
 b.  Cost of exploratory wells is carried as ''Exploratory wells in
 progresses''. Such exploratory wells in progress are capitalized in the
 year in which the Producing Property is created or is written off in
 the year when determined to bedry/abandoned.
 
 c.  All wells appearing as exploratory wells in progress which are
 more than two years old from the date of completion of drilling are
 charged to Profits and Loss Account except those wells which have
 proved reserves and the development of the fields in which the wells
 are located has been planned.