Interlink Petroleum

1.  The Company had given an interest free loan of Rs. 103.58 Lacs to
 Late Sajive Nair, ex-Chairman and Managing Director for medical
 expenses, Further an amount of Rs.6.23 Lacs being Companys cash was
 also with him. Due to his demise, the Company is not in a position to
 recover all these amounts from him and accordingly, during the year,
 the Company has written off Rs. 109.81 Lacs to the Profit and Loss
 Account.
 
 2.  During the year, the Company has paid non-competition agreement
 fees of Rs.51.18 Lacs to Mrs. Shaila Kartha, ex-Executive Director of
 the Company at the time of cessation of employment from the Company. As
 per the Terms and Conditions of an Agreement the validity period of the
 agreement is of 5 years, however, the amount is entirely charged to
 Profit & Loss Account in the current year,
 
 3.  Loans and Advances in the nature of Loans given to Subsidiary:
 
 4.  Impairment of Assets:- The Company has examined carrying cost of
 its identified Cash Generating Units (CGU) by comparing present value
 of estimated future cash flows from such CGUs, in terms of Accounting
 Standard - 28 on Impairment of Assets, according to which no provision
 for impairment is required as assets of none of CGUs are impaired as on
 1st April, 2008. There have been no indications of impairment during
 the financial year ended 31st March, 2009.
 
 5.  The Company is engaged in extraction of natural oil and gas only
 and therefore there is only one reportable segment in accordance with
 Accounting Standard 17.
 
 6.  The Company has substantial carried forward losses and unabsorbed
 depreciation. In view of the absence of virtual certainty of
 realization of carried forward tax losses, the Company has not is
 created any deferred tax asset / liabilities as envisaged in AS-22 on
 Taxes of income issued by The Institute of Chartered Accountants Of
 India.
 
 7.  During the year, the company has written off Deferred Revenue
 Expenses of Rs. 5.51 Lacs and preliminary Expenses of Rs. 2.18 Lacs.
 
 8.  Additional information pursuant to the provisions of paragraphs
 3,4C and 4D of part II of Schedule VI to the Companies Act, 1956.
 
 9.  In the opinion of directors, the current assets including loans,
 advances, deposits etc, shall realize the values shown there under if
 realized in the normal course of business.
 
 10.  The balances of debtors, creditors and loan & advances appearing
 in the balance sheet are subject to reconciliation and confirmation.
 
 11.  a) Sundry Creditors include Rs. Nil ( Previous Year Rs. Nil) due
 to small scale industrial undertakings to the extent such parties have
 been identified by the Management from available information.
 
 b) The Company has not received any intimation from the suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 development Act, 2006 and hence disclosures if any relating to amounts
 unpaid as at March 31,2009 together with interest paid / payable as
 required under the said Act, have not been given.
 
 12.  The company has not provided for gratuity to its employees on
 accrual basis as it is accounted on cash basis, which is not in
 conformity with AS 15 issued by the Institute of Chartered Accountants
 Of India. The liability for gratuity is Rs. 1.25 Lacs is not provided
 in the books. It is the Companys current policy for its employees to
 avail off the privilege leave during the year of accrual with no
 eligibility to carry forward/encashment. Accordingly, no provision for
 Leave Encashment has been made in the books of accounts.
 
 13.  Previous year figures have been regrouped and rearranged wherever
 necessary in order to make them comparable with that of the current
 year.