The financial statements are prepared under historical cost convention
 in accordance with Generally Accepted Accounting Principles (GAAP),
 Accounting Standards referred to in the Companies (Accounting
 Standards) Rules, 2006 issued by the Central Government and the
 relevant provisions of the Companies Act, 1956. All income and
 expenditure having material bearing are recognised on accrual basis,
 except where otherwise stated. Necessary estimates and assumptions of
 income and expenditure are made during the reporting period and
 difference between the actual and the estimates are recognised in the
 period in which the results materialise.
 
 1.  FIXED ASSETS
 
 a.  Land acquired on lease for 99 years or more is treated as freehold
 land.
 
 b.  Technical know-how /licence fee relating to plants/ facilities are
 capitalised as part of cost of the underlying asset.
 
 2.  INTANGIBLE ASSETS
 
 a.  Cost of Right of Way for laying pipelines is capitalised as
 Intangible Asset and being perpetual in nature, is not amortised.
 
 b.  Technical know-how /licence fee relating to production process and
 process design are recognised as Intangible Assets.
 
 c.  Cost of Software directly identified with hardware is capitalised
 along with the cost of hardware. Application software is capitalised as
 Intangible Asset.
 
 3.  CONSTRUCTION PERIOD EXPENSES ON PROJECTS
 
 a.  Related expenditure (including temporary facilities and crop
 compensation expenses) incurred during construction period in respect
 of plan projects and major non-plan projects are capitalised.
 
 b.  Financing cost incurred during the construction period on loans
 Specifically borrowed and utilised for projects is capitalised.
 Financing cost includes exchange losses in relation to borrowings
 denominated in foreign currency.
 
 c.  Financing cost, if any, incurred on general borrowings used for
 projects during the construction period is capitalised at the weighted
 average cost.
 
 4.  DEPRECIATION
 
 a.  Depreciation on Fixed Assets is provided on the Straight Line
 method, in the manner and at the rates prescribed under Schedule XIV to
 the Companies Act, 1956 and is charged pro rata on a monthly basis on
 assets, from / up to and inclusive of the month of capitalisation /
 sale, disposal or deletion during the year.
 
 b.  All assets costing up to Rs. 5000/-, other than LPG cylinders and
 pressure regulators, are fully depreciated in the year of
 capitalisation.
 
 c.  Premium on leasehold land is amortised over the period of lease.
 
 d.  Machinery Spares, which can be used only in connection with an item
 of fxed asset and the use of which is expected to be irregular, are
 depreciated over a period not exceeding the useful life of the
 principal item of fxed asset.
 
 e.  Intangible Assets other than application software are amortised on
 a straight line basis over a period of ten years or life of the
 underlying plant/facility, whichever is earlier.
 
 f.  Application software are normally amortised over a period of four
 years, or over its useful life, whichever is earlier.
 
 5.  IMPAIRMENT OF ASSETS
 
 At each balance sheet date, an assessment is made of whether there is
 any indication of impairment. An impairment loss is recognised whenever
 the carrying amount of assets of cash generating units(CGU) exceeds
 their recoverable amount.
 
 6.  FOREIGN CURRENCY TRANSACTIONS
 
 a.  Foreign Currency transactions during the year are recorded at the
 exchange rates prevailing on the date of transactions.
 
 b.  All foreign currency assets, liabilities and forward contracts are
 restated at the rates prevailing at the year end.
 
 c.  All exchange differences (except as stated in para 3 (b) of
 Schedule 20A and para 7 of Schedule 20B) are dealt with in the Profit
 and loss account including those covered by forward contracts, where
 the premium / discount arising from such contracts are recognised over
 the period of contracts.
 
 d.  The realised gain or loss in respect of commodity hedging
 contracts, the pricing period of which has expired during the year, are
 recognised in the Profit & Loss Account along with the underlying
 transaction. However, in respect of contracts, the pricing period of
 which extends beyond the balance sheet date, suitable provision is made
 for likely loss, if any.
 
 7.  INVESTMENTS
 
 a.  Long-term investments are valued at cost and provision for
 diminution in value thereof is made, wherever such diminution is other
 than temporary.
 
 b.  Current investments are valued at the lower of cost and fair value.
 
 8.  INVENTORIES
 
 a.  Crude oil is valued at cost on First In First Out (FIFO) basis or
 at net realisable value, whichever is lower.
 
 b.  Raw material for lubricants and fnished lubricants are valued at
 weighted average cost or at net realisable value, whichever is lower.
 
 c.  Stock-in process is valued at raw material cost plus cost of
 conversion or at net realisable value, whichever is lower.
 
 d.  Finished products other than Lubricants are valued at cost (on FIFO
 basis) or at net realisable value, whichever is lower.
 
 e.  Empty packages are valued at weighted average cost.
 
 f.  Stores and spares are valued at weighted average cost. Stores &
 spares in transit are valued at cost.
 
 g.  Value of surplus, obsolete and slow moving stores and spares, if
 any, is reduced to net realisable value. Surplus items, when
 transferred from completed projects are valued at cost / estimated
 value, pending periodic assessment / ascertainment of condition.
 
 9.  DUTIES ON BONDED STOCKS
 
 Excise / Customs duty is provided on stocks stored in Bonded Warehouses
 (excluding goods exempted from duty / exports or where liability to pay
 duty is transferred to consignee).
 
 10.  GRANTS
 
 a.  In case of depreciable assets, the cost of the asset is shown at
 gross value and grant thereon is treated as Capital Grants, which is
 recognised in the Profit and Loss Account over the period and in the
 proportion in which depreciation is charged.
 
 b.  Grants received against revenue items are recognised as income.
 
 11. PROVISIONS
 
 A provision is recognised when there is a present obligation as a
 result of a past event and it is probable that an outfow of resources
 will be required to settle the obligation in respect of which a
 reliable estimate can be made.
 
 12.  EXPLORATION & PRODUCTION EXPENDITURE
 
 Successful Efforts Method of accounting is followed for Oil & Gas
 exploration and production activities as stated below:
 
 a.  Cost of surveys, studies, carrying and retaining undeveloped
 properties are expensed out in the year of incurrence.
 
 b.  Cost of acquisition, drilling and development are treated as
 capital work-in-progress when incurred and are capitalised when the
 well is ready to commence commercial production.
 
 c.  Accumulated costs on exploratory wells in progress are expensed out
 in the year in which they are determined to be dry.
 
 The proportionate share in the assets, liabilities, income and
 expenditure of joint operations are accounted as per the participating
 interest in such joint operations.
 
 13.  EMPLOYEE BENEFITS
 
 Liability towards long term defned employee benefits - leave encashment,
 gratuity, pension, post-retirement medical benefits, long service
 awards, ex-gratia, death benefits and resettlement allowance are
 determined on actuarial valuation by independent actuaries at the year
 end by using Projected Unit Credit method. Liability so determined is
 funded in the case of leave encashment and gratuity, and provided for
 in other cases.
 
 In respect of Provident Fund, the contribution for the period is
 recognized as expense and charged to Profit & Loss Account.
 
 Short term employee benefits are recognized as an expense at an
 undiscounted amount in the Profit and Loss Account of the year in which
 the related services are rendered.
 
 14. SALE OF PRODUCTS
 
 Sales are net of discount, include applicable excise duty, surcharge
 and other elements as are allowed to be recovered as part of the price
 but excludes VAT/Sales Tax.
 
 15. RESEARCH & DEVELOPMENT
 
 Expenditure incurred on research activities is charged off in the year
 in which it is incurred. Expenses directly related to development
 activities which are capable of generating future economic resources,
 are treated as intangible assets.
 
 16. TAXES ON INCOME
 
 a.  Provision for current tax is made in accordance with the provisions
 of the Income Tax Act, 1961.
 
 b.  Deferred tax liability/asset on account of timing difference
 between taxable and accounting income is recognised using tax rates and
 tax laws enacted or substantively enacted as at the balance sheet date.
 In the event of unabsorbed depreciation or carry forward of losses,
 deferred tax assets are recognized, if there is virtual certainty that
 sufficient future taxable income will be available to realize such
 assets.
 
 c.  Minimum Alternate Tax (MAT) paid in accordance with the tax laws,
 is considered as an asset when it is probable that the future economic
 benefits associated with it, will fow to the Company.
 
 17. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
 
 Contingent Liabilities are considered only for items exceeding Rs. 5.00
 lakhs in each case. Contingent Liabilities in respect of show cause
 notices are considered only when converted into demands. Capital
 Commitments are considered only for items exceeding Rs. 1 lakh in each
 case.
 
 18. ACCOUNTING/CLASSIFICATION OF EXPENDITURE AND INCOME
 
 a.  Insurance claims are accounted on acceptance basis.
 
 b.  All other claims/entitlements are accounted on the merits of each
 case/realisation.
 
 c.  raw materials consumed are net of discount towards sharing of
 under-recoveries.
 
 d.  Income and expenditure of previous years, individually amounting to
 Rs. 5 lakhs and below are not considered as prior period items.