Dear Members,
 
 The Directors have pleasure in presenting the Annual Report for the
 year ended 31 March 2011.
 
 FINANCIAL REVIEW
 
 The Company achieved the following results over the past two years :
 
 (Rs.)                                   2009-10        2010-11
 
 Net Sales                            708,046,954     709,490,752
 
 EBIDTA                               589,877,960     627,824,389
 
 EBIDTA / Net Sales                         83%            88%
 
 Total Reserves and Surplus of the Company have increased from Rs.
 1281.07 million to Rs. 1,526.17 million as on 31 March 2011.
 
 REVIEW OF OPERATIONS
 
 During the year, the Company continued with its efforts to complete the
 seismic programmes being undertaken in all our fields.
 
 The Company expects that reservoir simulation and modeling work should
 be largely completed during this fiscal year.
 
 In addition, drilling activities for the development of our oilfields
 has begun with development wells being drilled successfully in the
 Lohar oilfield. This will be followed with similar activities in our
 other oil and gas fields.
 
 The Company also continues to be actively engaged in obtaining
 necessary approvals from various Central and State agencies for the
 extensive drilling activities being planned.
 
 For a detailed review of the Company''s operations and plans, please
 refer to the Management Discussion and Analysis section on page 4 of
 this Annual Report.
 
 LOHAR ARBITRATION / PAYMENT OF PROFIT PETROLEUM
 
 The matter of payment of Profit Petroleum for Lohar oilfield is still
 the subject of judicial review.  Please refer to Note 2 of the Notes on
 Accounts section of this Annual Report for more details.
 
 FINAL DIVIDEND
 
 The Directors are pleased to inform that in the F.Y. 2010-11, the Board
 of Directors have declared two interim dividends of 15% each, which
 shall be declared as final dividend for the year 2010-11 subject to
 approval by the shareholders of the Company in the forthcoming AGM.
 
 BOARD OF DIRECTORS
 
 Mr. T. Currimbhoy retires by rotation at the ensuing Annual General
 Meeting and being eligible, offers himself for re-appointment.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 In accordance with the provisions of Section 217(2AA) of the Companies
 Act, 1956, the Board of Directors do hereby confirm that in the
 preparation of the Annual Accounts, the applicable Accounting Standards
 have been duly followed, and for the purpose the Directors have
 selected the necessary accounting policies and applied them
 consistently and made judgments / estimates that are reasonable and
 prudent; so as to give a true and fair view of the state of affairs of
 the Company at the end of the financial year and of the profit or loss
 of the Company for that period, also that the Directors have taken
 proper and sufficient care for the maintenance of adequate accounting
 records in conformity with the provisions of Companies Act, 1956, for
 safeguarding the assets of the Company and for preventing and detecting
 fraud and other irregularities, and lastly that the Directors have
 prepared the annual accounts on a going concern basis.
 
 AUDITORS'' AND THEIR REPORT
 
 The Auditors, M/s V. Sankar Aiyar & Co., Chartered Accountants, retire
 at the ensuing Annual General Meeting and being eligible, offer
 themselves for re-appointment. The Auditors'' Report forms a part of
 this Annual Report.
 
 CORPORATE GOVERNANCE REPORT
 
 Pursuant to Clause 49 of the Listing Agreement, Management Discussion
 and Analysis and a Report on Corporate Governance alongwith certificate
 from Auditors regarding compliance of conditions of Corporate
 Governance is annexed to Directors'' Report. A declaration by the CEO
 (Manager) regarding the compliance with the Code of Conduct also forms
 part of this Annual Report.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The activities undertaken by your Company do not fall under the scope
 of disclosure of particulars under Section 217(1)(e) of the Companies
 Act, 1956, to the extent where it relates to the conservation of energy
 and technology absorption. Particulars with regard to foreign exchange
 outgo appear as point no. 15 of the Notes forming Part of the Accounts.
 
 PERSONNEL
 
 The names and particulars of the employees required to be disclosed, in
 terms of the provisions of Section 217(2A) of the Companies Act, 1956,
 read with the Companies (Particulars of Employees) Rules, 1975, as
 amended, forms part of the annexure to the Directors'' Report. However,
 in terms of Section 219(1)(b)(iv) of the Companies Act, 1956, the
 Annual Report excluding the aforesaid annexure is being sent to the
 shareholders of the Company and others entitled thereto. Any member
 interested in obtaining a copy of the said annexure may write to the
 Company Secretary at the registered office of the Company.
 
 ACKNOWLEDGEMENTS
 
 The accretion of a sincere and motivated team of personnel is
 exceedingly valuable in the progress of a Company. Your Company is
 fortunate to have a team whose endeavors have laid a strong foundation
 for the success of the organization as a whole. Your Directors
 acknowledge the exemplary contribution made by the employees of the
 Company.
 
 On behalf of the Company, we wish to convey our thanks to Ministry of
 Petroleum and Natural Gas (MoPNG), Directorate General of Hydrocarbons
 (DGH), Ministry of Environment and Forests (MoEF), Government of India
 and the Bankers of the Company for their continuous support,
 cooperation and guidance. The Directors value the trust shown by the
 shareholders in their ability to manage the Company. We expect that
 with the ongoing encouragement and support of our shareholders, we
 shall be successful in achieving the desired objectives in the near
 future.
 
                                    For and on Behalf of the Board
 
 20 July 2011                                             R. KAPUR
 
 New Delhi                                                Chairman