1.  Estimated amount of contracts remaining to be executed on capital
 account
 
 Estimated amount of contracts remaining to be executed on capital
 account, not provided for (net of advances) Rs. 44,293,705/- (Previous
 Year Rs. 3,936,105/-).
 
 2.  Contingent Liabilities not provided for:
 
 i) A demand raised by Custom Authority in earlier years for Rs.
 25,502,866/- on repair and return, scrap and storage of the rig
 material taken out by ONGCL based at Nhava, Maharashtra which is being
 contested by the company and the Hon''ble CEGAT has already passed an
 order allowing Company''s contention and directed the Custom Department
 for review. The liability, if any, would be accounted for at the time
 of final disposal of the case. The Company had deposited Rs.
 6,000,000/-during earlier years as an advance under protest with the
 Collector of Custom and has been shown as advance recoverable in cash
 or in kind. There is no progress in the case during the year.
 
 ii) Company has received a demand letter dated 20th May,2010 from the
 office of the Commissioner of Service Tax-I Mumbai (pursuant to the
 Show Cause Notice dated 19th September, 2008) for Rs.6,03,94,143/- and
 interest thereon and penalty for similar account towards availing and
 utilising the Cenvat credit by the Company which alleged to be not
 eligible. An Appeal has been filed by the Company before the Appellate
 Tribunal as the Company has been advised that the demand is untenable
 and likely to be quashed.
 
 iii) During the year under review, Company''s income tax assessment for
 the assessment year 2007-08 (relevant to the accounting year 2006-07)
 was completed. The assessing officer made disallowances aggregating to
 Rs.8,59,70,901/- thereby raising a demand of tax of Rs.3,91,50,756/, An
 appeal has been filed by the Company before the appellate authorities
 and is confident it will be decided in favour of the Company.
 
 iv) Company had in earlier year, provided Corporate Guarantees to Axis
 Bank Limited, Singapore Branch as a Collateral security for providing
 Loans to Joint Venture Companies as under:
 
 (a) US$ 20 Mn (Equivalent to Rs. 891,600,000/- if converted at the
 exchange rate prevailing as on 31/03/2011) loan by Axis Bank Ltd.,
 Singapore to Discovery Drilling Pte Ltd, a Joint Venture Company, (This
 corporate guaranty is backed by Sub - Servient Charge on fixed assets
 of the Company) and
 
 (b) US$ 22.50 Mn (Equivalent to Rs.1,003,050,000/- if converted at the
 exchange rate prevailing as on 31/03/2011) loan by Axis Bank Ltd.,
 Singapore to Virtue Drilling Pte Ltd., a Joint Venture Company
 
 3.  Joint Ventures
 
 Discovery Drilling Pte Ltd (DDPL) and Virtue Drilling Pte Ltd (VDPL)
 continue to be Joint Ventures of the company.
 
 4.  Sundry Debtors
 
 (i) Last year, Rs. 1,39,38,188/-with regard to following two cases
 under arbitration were considered good of recovery as the arbitration
 cases were pending.
 
 (a) With regard to rig Ed-Holt (Rs.95,29,456/-) was settled during the
 year, partially (for Rs.52,21,962/-) in favour of the Company and
 partially (for Rs.43,07,494/- against it. The Company has received
 Rs.138 Lacs (Rs.52,21,962/- along with interest since 1994).The
 remaining amount of Rs.43,07,494/- has been written off during the year
 under review.
 
 (b) With regard to rig PN3 (Rs. 4,408,732/-), the matter was kept in
 abeyance during the whole year. However since the management is
 confident to win the case, this has been shown as considered good for
 recovery.
 
 (ii) lnearlieryear,asumofUS,772,408.55(in Indian Rupee re-stated on
 31-3-2011 atRs. 658,553,972/-) waswithheld by ONGC in relation to
 certain claim made on another body corporate, which is being contested
 by the company. Based on the legal opinion obtained, the company is not
 liable for the aforesaid amount, and therefore the same has been
 considered good and recoverable. The Company has initiated Arbitration
 proceedings against ONGC.
 
 5.  (i) Confirmation for one of the loans of Rs. 1087 Lacs outstanding
 as on 31st March, 2011 has not been received so far.
 
 (ii) The identification of Micro, Small & Medium Sized Enterprise
 Suppliers (MSMES) is based on management''s knowledge of their status.
 
 6.  In the opinion of the Management and to the best of their knowledge
 and belief, the value of current assets, loans and advances, if
 realised in the ordinary course of business would not be less than the
 amount at which they are stated in the Balance Sheet.
 
 7.  Disclosures as required by Accounting Standards referred to in
 sub-section (3C) of the section 211 of the Companies Act, 1956 (to the
 extent applicable and mandatory):
 
 7.1 The amount of Exchange Difference (Net):
 
 a) The Foreign Exchange Loss (Net) Rs. 68,299,178/- (Previous Year
 Rs.73,970,541/-) resulting from settlement, restatement of foreign
 exchange transactions and losses on account of mark to market
 adjustments on outstanding derivative instruments (if any) has been
 adjusted in the Profit & Loss Account.
 
 7.2 Disclosure as per Accounting Standard -15
 
 (a) Gratuity:
 
 (i) The employees'' gratuity fund scheme managed by LIC of India is a
 defined benefit plan. The present value of obligation is determined
 based on actuarial valuation using the projected unit credit method,
 which recognises each period of service as giving rise to additional
 unit of employee benefit entitlement and measures each unit separately
 to build up the final obligation.
 
 (ii) Actuarial Valuation of Gratuity is based on the maximum liability
 of Rs.10,00,000/- i.e. as provided under the Gratuity Act.
 
 (b) Leave Encashment
 
 The obligation for leave encashment is recognised and disclosed as per
 the Actuarial Valuation Report.
 
 7.3 All undertakings of the Company are engaged in similar activities
 of providing services to Oil & Gas Companies. Therefore, there is only
 one reportable Segment - Drilling and Related Services under Accounting
 Standard -17 Segment Reporting. The Company operates in a single
 geographical segment-India.
 
 7.4 As per Accounting Standard -18, the Company''s related parties and
 transactions are disclosed below: 
 
 A.  List of related parties & relationships:
 
 i.  Joint Venture of Reporting Enterprise (refer Note No.3 above)
 
 Discovery Drilling Pte Ltd., Singapore (DDPL)
 
 Virtue Drilling Pte Ltd., Singapore (VDPL) 
 
 ii.  Key Management Personnel
 
 Name of person Relationship
 
 Sh. Naresh Kumar Managing Director (up to 24th September, 2010)
 
 Sh.RaghavJindal Managing Director
 
 Sh. I. N. Chatterjee WholeTime Director (up to 11th May, 2010)
 
 iii.  Relative of Key Management Personnel
 
 Sh. Manav Kumar Son of Sh. Naresh Kumar, Managing Director
 
 (up to 24th September, 2010)
 
 7.5 Office Premises taken on lease
 
 The Company has taken office premises on cancellable lease. These are
 normally renewed after expiry of lease period.
 
 8. Additional Information pursuant to the provisions of paragraph 3 & 4
 of Part II of Schedule VI to the Companies Act, 1956 (to the extent
 applicable). Since the Company does not have manufacturing activity,
 the additional information regarding capacity and quantitative details
 are not given.
 
 9.  Figures have been rounded off to the nearest rupee.
 
 10.  Previous year''s figures have been re-grouped/ re-arranged/
 re-classified wherever considered necessary.
 
 Schedule 1 to 18 are annexed to and form an integral part of the
 Balance Sheet as at 31 st March, 2011 and Profit & Loss accounts for
 the year ended on that date.