Interlink Petroleum

The Directors have pleasure in presenting herewith seventeenth Annual
 Report of your Company for the year ended 31st March, 2008.
 
 Following figures summaries the working result of the Company.
 
 Financial Results :                                  (Rs. in Lacs)
                                       2007-2008       2006-2007
 
 Gross Income                            121.85           0.62
 Gross Profit/ (Loss) before 
 Interest, Depreciation & Tax           (118.76)        (53.20)
 Interest                                  2.93           1.14
 Depreciation                             15.69          15.81
 Provision for Taxation                    0.72           0.72
 Net Profit/(Loss)                      (138.10)        (70.87)
 
 
 Dividend :
 
 In view of loss, your Directors regret their inability to recommend
 payment of dividend to the members.
 
 Operation in Retrospect & Prospect:
 
 During the year under review, as evident, the Company could not
 register growth in terms of Revenue and Profit due to Development
 activity being undertaken to increase production from the current
 wells. As the wells are old, inspite of our development activity
 undertaken to enhance, the production has not yielded desired economic
 realization at par to industry standards hence development expenditure
 incurred amounting to Rs. 124.83 lacs were transferred to Profit and
 Loss account.
 
 The Company intended to implement a major expansion production
 programme of Baola Gas field, which included to develop other wells
 with existing two wells, for full potential recovery with latest
 production technology. However, the paucity of funds, created
 bottlenecks in implementation of the proposed plan. The Board has now
 finalized with M/s.Jit Sun Investments Pte Ltd., Singapore, having
 sound economic position and interest in collaborate its long term
 interest with the Companys organisational interest, has agreed to
 infuse long term funds by subscribing, 1,03,10,000 Equity Shares of the
 Company on preferential basis.
 
 Since Government of India is continuously thrusting on development of
 Energy Sector, the Company expects good support there from and bearing
 unforeseen circumstances, it hopes to pose a better result in coming
 years.
 
 The Company is still awaiting the completion formalities of Mining
 Lease approval of Modhera Field from the Government in order to start
 the commissioning activities.
 
 MANAGEMENT DISCUSSION & ANALYSIS :
 
 Overall Review
 
 Year 2007-08 could also see the stable growth internationally. However
 the Company is not in international activities.  World over the fastest
 growing source of primary energy is projected to be Natural Gas. As
 reiterated earlier, over 2001- 2025 period, consumption of Natural Gas
 is projected to increase significantly and considerably, surpassing
 other traditional energy sources.
 
 In the Country, the New Exploration Licensing Policy (NELP) has
 encouraged Private Sector for their due contribution to the Development
 of Nation by ensuring optimum exploitation of our reserves. The Company
 is hopeful to be the beneficiary of this policy in future time to come.
 
 Opportunities
 
 Government of India has continued putting thrust of the business of
 Petroleum Operation in Private Sector to very high extent with the
 enhancement of New Exploration License Policy (NELP) and floating
 International Tenders/Road shows for various on shore/off shore blocks
 of India. The opportunities to enter into this area of business have
 become more confident because of advance technical backup being
 provided by the Government of India by carrying out advanced 3D Seismic
 Surveys to a great extent on these blocks. Our Company has, though
 started small operations with Gas field at Baola and proposed Oil field
 at Modhera, there exists good prospects. With new market trend to
 explore the business potentialities in the Hydrocarbon Sector, the
 Company is in process of tie up with major Russian Companies in terms
 of Technical / Commercial Participation for Nationals and International
 oilfields.
 
 Threats
 
 Gases is located at isolated and scattered place hence its transfer to
 the usage point becomes costly and expensive and in turn calls for
 heavy investment and suppress the margin available to the Company.
 
 Further, various Foreign / International Companies are coming forward
 and as such in future, the Company has to compete with International
 Giants.
 
 Internal Control Systems
 
 The Company has already adequate Internal Control Systems in respect of
 efficiency of operation, financial reporting, compliance with laws and
 applications etc. which is supplemented by Internal Audit conducted
 regularly to review the adequacy and effectiveness of Internal Control
 and to suggest improvement. The Audit Committee regularly reviews the
 significant observations of the Audit and also meets the Companys
 Statutory Auditors to obtain their observations on Financial Reports
 and Controls.
 
 Financial:
 
 The Company looks forward for enhancement of Equity Capital with due
 stability in operations and performance and hopes availing requisite
 finance for development of existing and new fields for production
 enhancement and also in the new allotted Modhera Oil field.
 
 Review of Financial Performance :
 
 During the year under review, the-Companys Gross Income got increased
 due to sale of assets.
 
 Statutory Compliance :
 
 On obtaining confirmation from the various functional areas of the
 Company of having complied with the statutory requirements, a
 declaration regarding compliance of the provision of the various
 statutes is made by the Managing Director at each Board Meeting. The
 compliance officer ensures compliance of the SEBI regulations and
 provisions of the Listing Agreement.
 
 Directors Responsibility Statement:
 
 In terms of Section 217(2AA) of the Companies Act, 1956, the Directors
 would like to state that: -
 
 (i) In the preparation of the Annual Accounts, the applicable
 Accounting Standards have been followed.
 
 (ii) The Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that were reasonable
 and prudent so as to give true and fair view of the state of affairs of
 the Company at the end of the financial year and of the loss of the
 Company for the year under review.
 
 (iii) The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities.
 
 (iv) The Directors have prepared the annual accounts on a going concern
 basis.
 
 Directorate :
 
 Mr. Vladimir Baiburine and Mr. Alexei Kossilov, the Directors, retire
 by rotation at the ensuing Annual General Meeting, and being eligible,
 offer themselves for re-election.
 
 Corporate Governance:
 
 Pursuant to Clause 49 of the Listing Agreements entered into with the
 Stock Exchange, Corporate Governance Report and Auditors Certificate
 regarding compliance of conditions of Corporate Governance are made a
 part of the Annual Report, as per Annexure - B.
 
 Audit Committee:
 
 Pursuant to the provisions of Section 292A of the Companies Act, 1956,
 an Audit Committee has been constituted with three Independent
 Non-Executive Directors viz. Mr.Satish Sonalkar, Dr.Vinod C.Malshe and
 Mr.Vladimir Baiburine. The Chairman of the Committee is Mr. Satish
 Sonalkar. The terms of reference stipulated by the Board for the Audit
 Committee, cover the matters specified in aforesaid Section.
 
 Remarks in Auditors Report:
 
 Observations made by the Statutory Auditors in their notes on accounts,
 are self-explanatory and do not call for any further comments and
 observations by the Company.
 
 Public Deposit:
 
 During the year, the Company has not accepted any Fixed Deposits under
 Section 58A of the Companies Act, 1956.
 
 Energy, Technology & Foreign Exchange :
 
 Information in accordance with the provisions of Section 217(1)(e) of
 the Companies Act, 1956, read with Companies (Disclosures of
 particulars in the report of Board of Directors) Rules, 1988 regarding
 conservation of energy, technology absorption and foreign exchange
 earnings and outgoings is given as Annexure: A forming part of this
 report.
 
 Particulars of Employees:
 
 Information under Section 217(2A) of the Companies Act, 1956 read with
 Companies (Particulars of Employees) Rules, 1975, form part of this
 report. However, as per the provisions of Section 219(1) (b) (iv) of
 the Companies Act, 1956, the Report and the Accounts is being sent to
 all shareholders pf the Company excluding the aforesaid information.
 Shareholders interested in obtaining this information, may write to the
 Dy.Company Secretary at the registered office of the company.
 
 Auditors :
 
 The Auditor M/s. Shirish Desai & Co., Chartered Accountants retire at
 the conclusion of the ensuing Annual General Meeting and being
 eligible, offer themselves for reappointment. Members are requested to
 appoint the Auditors and fix their remuneration.
 
 Acknowledgement:
 
 The Board places on record its deep appreciation to the Government of
 India, Foreign Collaborators, Banks and Employees for their
 co-operation and continued support received during the year under
 review.
 
                                    For and on behalf of the Board,
 
                                                   Sd/-
 
 Place : Cochin                                Sajive Nair
 Date  : 07.05.2008                    Chairman & Managing Director