(i) Basis of preparation
 
 Te financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies (Accounting
 Standards) Rules, 2006, (as amended) and the relevant provisions of the
 Companies Act, 1956. Te financial statements have been prepared under
 the historical cost convention on an accrual basis. Te accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous year. Te financial statements
 of the Company reflect its share of assets, liabilities, income and
 expenditure of the Unincorporated Joint Ventures which are accounted on
 the basis of available information in the audited/unaudited financial
 statements of the Unincorporated Joint Ventures on line by line basis
 with similar items in the Company''s accounts to the extent of the
 participating interest of the Company as per the various Production
 Sharing Contracts. Te financial statements of the Unincorporated Joint
 Ventures are prepared by the respective Operators in accordance with
 the requirements prescribed by the respective Production Sharing
 Contracts of the Unincorporated Joint Ventures. Hence, in respect of
 these Unincorporated Joint Ventures, certain disclosures required under
 the Accounting Standards notified by Companies (Accounting Standards)
 Rules, 2006, (as amended), other pronouncements of Te Institute of
 Chartered Accountants of India and the relevant provisions of the
 Companies Act, 1956 have been made in the financial statements of the
 Company based on audited/unaudited financial statement of the
 unincorporated Joint Venture.
 
 (ii) Use of Estimates
 
 Te preparation of the financial statements requires the Management to
 make estimates and assumptions considered in the reported amounts of
 assets and liabilities (including contingent liabilities) as of the
 date of the financial statements and the reported income and expenses
 during the reporting period like depletion of Producing Properties,
 estimate of Site Restoration Liability, expensing of the estimated Site
 Restoration Liability, provision for employee benefits, useful lives of
 fixed assets, provision for doubtful advances, provision for tax,
 recognition of MAT Credit, recognition of deferred tax asset etc.
 Management believes that the estimates used in the preparation of the
 financial statements are prudent and reasonable. Future results may vary
 from these estimates. Any revisions to accounting estimates are
 recognised prospectively.
 
 (iii) Fixed Assets and Exploration and Development Costs
 
 Fixed Assets includes Fixed Assets and Producing Properties.
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing costs relating to acquisition of fixed
 assets which take a substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 Te Company generally follows the Successful Eforts Method of
 accounting for its exploration and production activities as explained
 below:
 
 (a) Cost of exploratory wells, including survey costs, is expensed in
 the year when the well is determined to be dry/abandoned or is
 transferred to Producing Properties on attainment of commercial
 production.
 
 (b) Cost of all appraisal programmes related to a Discovery are
 initially capitalised as Exploration Expenditure. If a Discovery is
 determined to be commercial pursuant to the appraisal programme, all
 appraisal costs, including the cost of unsuccessful appraisal wells, if
 any, are capitalised as Producing Properties on attainment of
 commercial production. If at the end of the appraisal programme, the
 Discovery is relinquished, then all appraisal costs related to the
 Discovery are charged to the Profit and Loss Account.
 
 (c) Cost of temporary occupation of land, successful exploratory wells,
 appraisal wells, development wells and all related development costs,
 including depreciation on support equipment and facilities, are
 considered as development expenditure. Tese expenses are capitalised as
 Producing Properties on attainment of commercial production.
 
 (d) Producing Properties, including the cost incurred on dry/abandoned
 wells in development areas, are depleted using Unit of Production''''
 method based on estimated proved developed reserves. Any changes in
 Reserves and/or Cost are dealt with prospectively from the beginning of
 the year of such change. Hydrocarbon reserves are estimated and/or
 approved by the Management Committees of the Unincorporated Joint
 Ventures, which follow the International Reservoir Engineering
 Principles.
 
 (e) If the Company/Unincorporated Joint Venture were to relinquish a
 block or part thereof, the accumulated acquisition and exploration
 costs carried in the books related to the block or part thereof, as the
 case may be, are written of as a charge to the Profit and Loss Account
 in the year of relinquishment.
 
 Explanatory Note
 
 1.  All exploration costs including acquisition of geological and
 geophysical seismic information, license, depreciation on support
 equipment and facilities and acquisition costs are initially
 capitalized as Exploration Expenditure, until such time as either the
 exploration well(s) in the first drilling campaign is determined to be
 successful, at which point the costs are capitalised as Producing
 Properties, or is determined to be unsuccessful, in which case such
 costs are written of consistent with para 2 below.
 
 2.  Exploration costs associated with drilling, testing and equipping
 exploratory well(s) are initially capitalized as Exploration
 Expenditure and retained in exploration expenditure-work-in-progress
 so long as:
 
 (a) such well has found potential commercial reserves; or
 
 (b) such well test result is inconclusive and is subject to further
 exploration or appraisal activity like acquisition of seismic, or
 re-entry of such well, or drilling of additional exploratory/step out
 well in the area of interest, such activity to be carried out no later
 than 2 years from the date of completion of such well testing
 
 — until such time as such costs are transferred to Producing
 Properties on attainment of commercial production; or
 
 — else charged to the Profit and Loss Account.
 
 Management makes quarterly assessment of the amounts included in
 Exploration Expenditure-work-in-progress to determine whether
 capitalization is appropriate and can continue. Exploration well(s)
 capitalized beyond 2 years are subject to additional judgment as to
 whether facts and circumstances have changed and therefore the
 conditions described in 2(a) and (b) no longer apply.
 
 (iv) Site Restoration
 
 Estimated future liability relating to dismantling and abandoning
 producing well sites and facilities is recognised when the installation
 of the production facilities is completed based on the estimated future
 expenditure determined by the Management in accordance with the local
 conditions and requirements. Te corresponding amount is added to the
 cost of the Producing Property and is expensed in proportion to the
 production for the year and the remaining estimated proved developed
 reserves of hydrocarbons based on latest technical assessment available
 with the Company. Any change in the value of the estimated liability is
 dealt with prospectively and reflected as an adjustment to the provision
 and the corresponding Producing Property.
 
 (v) Impairment
 
 Te 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 is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. Te recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 After impairment, depreciation/depletion is provided in subsequent
 periods on the revised carrying amount of the asset over its remaining
 useful life.
 
 A previously recognised impairment loss is increased or reversed
 depending on changes in circumstances. However the carrying value after
 reversal is not increased beyond the carrying value that would have
 prevailed by charging usual depreciation if there was no impairment.
 
 (vi) Depreciation
 
 (i) Depreciation is provided on the Written Down Value'''' method at the
 rates specified in Schedule XIV of the Companies Act, 1956 or as per the
 estimated useful lives of the assets, whichever is higher.
 
 (ii) Improvements to Leasehold premises are amortised over the
 remaining primary lease period.
 
 (iii) Computer software is amortised over the license period or 10
 years, whichever is lower.
 
 (iv) Assets individually costing less than or equal to Rs. 5,000 are
 fully depreciated in the year of acquisition.
 
 (vii) Investments
 
 Investments are capitalised at cost plus brokerage and stamp charges.
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current investments
 are valued at lower of cost and fair value determined on an individual
 investment basis. Long term investments are valued at cost. However,
 provision for diminution in value is made to recognise a decline other
 than temporary in the value of the investments.
 
 (viii) Inventories
 
 (i) Closing stock of crude oil, condensate and natural gas in saleable
 condition is valued at estimated Net Realisable Value. Estimated Net
 Realisable Value is the estimated selling price in the ordinary course
 of business, less estimated costs necessary to make the sale.
 
 (ii) Stores, spares, capital stock and drilling tangibles are valued at
 cost on first in first out basis/weighted average basis, as applicable,
 or estimated Net Realisable Value, whichever is lower.
 
 (ix) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 (i) Revenue from the sale of crude oil, condensate and natural gas, net
 of Government''s share of Profit Petroleum (calculated as per the
 provisions of the respective Production Sharing Contracts), where
 applicable, and Value Added Tax, is recognised on transfer of custody.
 
 (ii) Service Income is recognised on accrual basis as per the
 contractual terms and is net of Service Tax.
 
 (iii) Delayed Payment charges, retrospective revision in prices,
 interest on delayed payments and interest on income tax refunds are
 recognised as and when there is no uncertainty in the
 determination/receipt of the amount, on grounds of prudence.
 
 (iv) Interest Revenue is recognised on a time proportion basis taking
 into account the amount outstanding and the rate applicable.
 
 (v) Dividend Income is recognised when the right to receive the
 dividend is unconditional.
 
 (x) Employee benefits
 
 (a) Defined Contribution Plan
 
 (i) Provident Fund: Contributions towards employees'' provident fund are
 made to the Employees Provident Fund Scheme in accordance with the
 statutory provisions. Contributions towards Employees'' Provident Fund
 are recognized as an expense in the year incurred. Tere are no
 obligations other than the contribution payable to the respective fund.
 
 (ii) Superannuation Fund: Te Company contributes a sum equivalent to
 15% of eligible Employee''s basic salary to a Superannuation Fund
 administered by trustees. Te Company has no liability for future
 Superannuation Fund benefits other than its annual contribution and
 recognizes such contributions as an expense in the year incurred.
 
 (b) Defined benefit Plan
 
 Te Company makes annual contribution to a Gratuity Fund administered by
 trustees and managed by the Life Insurance Corporation of India. Te
 Company accounts its liability for future gratuity benefits based on
 actuarial valuation, as at the Balance Sheet date, determined every
 year by an Actuary appointed by the Company using the Projected Unit
 Credit method. Actuarial gains/losses are recognised in the Profit and
 Loss Account. Obligation under the defined benefit plan is measured at
 the present value of estimated future cash flows. Te estimate of future
 salary increase takes into account infation, likely increments,
 promotions and other relevant factors.
 
 (c) Compensated Absences
 
 Te liability for long term compensated absences carried forward on the
 Balance Sheet date is provided for based on actuarial valuation done by
 an independent Actuary using the Projected Unit Credit method at the
 end of each accounting period. Short term compensated absences is
 recognized based on the eligible leave at credit on the Balance Sheet
 date and is estimated based on the terms of the employment contract.
 
 (d) Other Employee benefits
 
 Other employee benefits, including allowances, incentives etc. are
 recognised based on the terms of the employment contract.
 
 (xi) Borrowing Cost
 
 Borrowing costs consist of interest and other costs that an entity
 incurs in connection with the borrowing of funds. Eligible borrowing
 costs directly attributable to the acquisition, construction or
 production of an asset that necessarily takes a substantial period of
 time to get ready for its intended use or sale are capitalized as part
 of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur.
 
 (xii) Foreign Currency Transactions
 
 Te Company translates foreign currency transactions into Indian Rupees
 at the rate of exchange prevailing at the transaction date. Monetary
 assets and liabilities denominated in foreign currency are translated
 into Indian Rupees at the rate of exchange prevailing at the Balance
 Sheet date. Exchange diferences arising on the settlement of monetary
 items or on reporting the Company''s monetary items at rates diferent
 from those at which they were initially recorded during the period, or
 reported in previous financial statements, excluding long term foreign
 currency monetary items (see below), are recognised as income or as
 expenses in the period in which they arise.
 
 Exchange diferences, both realised and unrealised, arising on reporting
 of long term foreign currency monetary items (as defined in the
 Accounting Standard - 11 notified by the Government of India) relating
 to the acquisition of a depreciable capital asset are added to/
 deducted from the cost of the asset and in other cases unrealised
 exchange diferences are accumulated in a Foreign Currency Monetary
 Item Translation Diference Account in the Company''s Balance Sheet and
 amortized over the balance period of such long term asset/liability but
 not beyond March 31, 2011, by recognition as income or expense in each
 of such periods.
 
 (xiii) Taxation
 
 Income Tax: Current tax is the amount of tax payable on the taxable
 income for the year and is provided with reference to the provisions of
 the Income Tax Act, 1961.
 
 Deferred Tax: Deferred tax is measured based on the tax rates and the
 tax laws enacted or substantively enacted at the Balance Sheet date.
 Deferred tax assets and deferred tax liabilities are ofset and relate
 to the taxes on income levied by same governing taxation laws. Deferred
 tax assets are recognised only to the extent that there is reasonable
 certainty that suficient future taxable income will be available against
 which such deferred tax assets can be realised. In situations where the
 company has unabsorbed depreciation or carry forward tax losses, all
 deferred tax assets are recognised only if there is virtual certainty
 supported by convincing evidence that they can be realised against
 future taxable Profits.
 
 At each Balance Sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that suficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 MAT Credit: Minimum Alternate Ta x (MAT) Credit is recognised as an
 asset only when and to the extent there is convincing evidence that the
 Company will pay normal income tax during the specified period in
 accordance with the Guidance Note on Accounting for Credit Available
 in respect of Minimum Alternate Ta x under Income Ta x Act, 1961. In
 the year in which the MAT Credit becomes eligible to be recognised as
 an asset, the said asset is created by way of a credit to the Profit and
 Loss Account and shown as MAT Credit Entitlement.  Te Company reviews
 the same at each Balance Sheet date and writes down the carrying amount
 of MAT Credit Entitlement to the extent there is no longer convincing
 evidence to the efect that the Company will pay normal income tax
 during the specified period.
 
 (xiv) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognised only when the Company has present or legal
 obligations as a result of past events for which it is probable that an
 outflow of economic benefit will be required to settle the transaction
 and when a reliable estimate of the amount of obligation can be made.
 Contingent liability is disclosed for (i) possible obligations which
 will be conformed only by future events not wholly within the control of
 the Company or (ii) present obligations arising from past events where
 it is not probable that an outflow of resources will be required to
 settle the obligation or a reliable estimate of the amount of the
 obligation cannot be made. Contingent assets are not recognised in the
 financial statements since this may result in the recognition of income
 that may never be realised.