1.  Basis of preparation of financial statement
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on accrual basis. GAAP comprises mandatory accounting
 standards as prescribed by the Companies (Accounting Standards) Rules,
 2006, the provisions of the Companies Act, 1956 and guidelines issued
 by the Securities & Exchange Board of India.
 
 2.  Use of estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported balances of assets & liabilities and disclosure relating to
 contingent liabilities as at the date of financial statements and
 reported amounts of income and expenses during the period.
 
 Accounting estimates could change from period to period. Actual results
 could differ from those estimates.  Appropriate changes in estimates
 are made as the Management becomes aware of change in circumstances
 surrounding the estimates. Changes in estimates are reflected in the
 financial statements in the period in which changes are made, if
 material, their effects are disclosed in the notes to the financial
 statements.
 
 The management periodically assesses using, external and internal
 sources, whether there is an indication that an asset may be impaired.
 An impairment loss is recognized wherever the carrying value of an
 asset exceeds its recoverable amount. An impairment loss for an asset
 is reversed if, and only if, the reversal can be related objectively to
 an event occurring after the impairment loss was recognized. The
 carrying amount of an asset is increased to its revised recoverable
 amount, provided that this amount does not exceeds the carrying amount
 that would have been determined (net of any accumulated amortization).
 
 3.  Revenue Recognition
 
 Revenue is primarily derived from oil & gas exploitation and other
 allied services. The same is accounted for by the Company on work done
 basis.
 
 Profit on sale of fixed assets / investments are recorded on transfer
 of title from the company and are determined as the difference between
 the sale price and carrying value of the fixed asset / investments.
 
 Interest is recognized using the time-proportion method based on rates
 implicit in the transaction.
 
 4.  Provisions and Contingent liabilities
 
 A provision is recognized if, as a result of a past event, the company
 has a present legal obligation that can be estimated reliably, and it
 is probable that an outflow of economic benefits will be required to
 settle obligation.  Provisions are determined by the best estimate of
 the outflow benefits required to settle the obligation at the reporting
 date. Where no reliable estimate can be made, a disclosure is made as
 contingent liability. A disclosure for a contingent liability is also
 made when there is a possible obligation or a present obligation that
 may, but probably will not, require an outflow of resources. Where
 there is a possible obligation or a present obligation in respect of
 which the likelihood of outflow of resources is remote, no provision or
 disclosure is made.
 
 Provision for onerous contracts, i.e. contracts where the expected
 unavoidable costs of meeting the obligations under the contract exceed
 the economic benefits expected to be received under it, are recognized
 when it is probable that an outflow of resources embodying economic
 benefits will be required to settle a present obligation as a result of
 an obligating event, based on a reliable estimate of such obligation.
 
 5.  Fixed Assets and Capital work-in-progress
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairments, if any. Direct costs are capitalized until fixed assets
 are ready for use. Borrowing costs directly attributable to acquisition
 or construction of fixed assets, which necessarily take a substantial
 period of time to get ready for their intended use, are capitalized.
 Capital work-in-progress comprises outstanding advance paid to acquire
 fixed assets, and the cost of fixed assets that are not yet ready for
 their intended use at the reporting date.
 
 6.  Depreciation and amortization
 
 Depreciation on fixed assets is provided on the straight-line method at
 the rate prescribed under Schedule XIV to the Companies Act, 1956.
 Depreciation for assets purchased / sold, impaired or discarded during
 a period is proportionately charged. Individual low cost assets
 (acquired for less than Rs. 5000/-) are depreciated fully in the year of
 purchase.
 
 7.  Retirement & Other benefits to employees
 
 Gratuity : In accordance with the Payment of Gratuity Act, 1972, the
 company provides for gratuity, a defined benefit retirement plan
 covering eligible employees. The plan provides a lump-sum payment to
 vested employees at retirement, death, incapacitation or termination of
 employment, of an amount based on the respective employee''s salary and
 the tenure of employment with the company subject to conditions
 specified in aforesaid act.
 
 Provident Fund : Eligible employees receive benefits of provident fund,
 which is a defined benefit plan. Both the employee and the Company
 makes monthly contribution to the provident fund plan equal to a
 specified percentage of the covered employee''s salary. The rate at
 which the annual interest is payable to the beneficiaries is being
 administered by the government.
 
 Compensated Absence : The employees of the Company are entitled to
 compensate absences which are both accumulating and non-accumulating in
 nature. The expected cost of accumulating compensated absence is
 measured based on the additional amount expected to be paid as a result
 of the unused entitlement that has accumulated at the Balance Sheet
 date. Expenses on non-accumulating compensated absences are recognized
 in the period in which the absences occur.
 
 8.  Foreign Currency Transactions
 
 Investments in foreign entities are recorded at the exchange rate
 prevailing on the date of making the investment.  Transactions in
 foreign currencies are recorded at the rates prevailing on the date of
 transaction.
 
 Monetary items denominated in foreign currency are restated at the rate
 prevailing on the balance sheet date.  Exchange difference arising on
 the settlement of monetary items or on reporting company''s monetary
 items at rates different from those at which they were initially
 recorded during the year or reported in the previous financial
 statements, are recognized as income or expense in the year in which
 they arise.
 
 9.  Taxes
 
 Tax expense comprises of current tax, related to earlier years &
 deferred tax.
 
 Income tax is accrued in the same period that the related revenue and
 expenses arise. A provision is made for income tax annually, based on
 the tax liability computed, after considering tax allowances &
 exemption. Provisions are recorded when it is estimated that a
 liability due to disallowances or other is probable.
 
 The difference that result between the profit considered for income
 taxes and the profit as per the financial statements are identified,
 and thereafter a deferred tax asset or deferred tax liability is
 recorded for timing differences, namely the differences that originate
 in one accounting period and reverse in another, based on the tax
 effect of aggregate amount of timing difference. The tax effect is
 calculated on the accumulated timing difference at the end of an
 accounting period based on enacted or substantively enacted
 regulations. Deferred tax assets are recognized only to the extent that
 there is reasonable certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realized.
 
 Tax credit is recognized in respect of Minimum Alternate Tax (''MAT'') as
 per the provisions of Section 115JAA of the Income Tax Act, 1961 based
 on convincing evidence that the Company will pay normal income tax
 within statutory time frame and is reviewed at each Balance Sheet date.
 The MAT credit is recognized as an asset in accordance with the
 recommendation provided in the Guidance Note issued by the Institute of
 Chartered Accountants of India.
 
 10.  Earning per Share
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earning per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period
 adjusted for the effects of all dilutive potential equity shares.
 
 11.  Investments
 
 Investments are classified as long term based on Management''s intention
 at the time of purchase. Cost for overseas investment comprises the
 Indian Rupee value of the consideration paid for the investment
 translated at the exchange rate prevalent at the date of investment.
 Long-term investments are carried at cost less provisions recorded to
 recognize any decline, other than temporary, in the carrying value of
 each investment.
 
 12.  Impairment of assets
 
 The company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired.  If any such indication
 exists, the Company estimated the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to recoverable amount.
 The reduction is treated as an impairment loss and is recognized in the
 profit & loss account. If at the balance sheet date there is an
 indication that if a previously assessed impaired loss no longer
 exists, the recoverable amount is reassessed and the asset is reflected
 at the recoverable amount subject to a maximum of depreciated historic
 cost.
 
 13.  Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax and extra ordinary items are adjusted for the effects of
 transactions of a non-cash nature, any deferrals or accruals of present
 or future operating cash receipts or payments and item of income or
 expenses associated with investing or financing cash flows. The cash
 flows from operating, investing and financing activities of the company
 are segregated.
 
 14.  Inventories
 
 Stores, spares (consumable & capital) parts & other consumables are
 valued at cost on First-in-first-out basis.
 
 15.  Segment Data
 
 The company considers its principal activity of providing oil and
 natural gas exploitation services to be a complete segment and all
 revenues for the year ended 31st March 2011 have been derived from this
 segment.
 
 16.  Borrowing Costs
 
 Borrowing Cost that are directly attributable to the acquisition,
 construction or production of a qualifying asset, is capitalized as
 part of the cost of that asset in accordance with the Accounting
 Standard 16 on Borrowing Costs.  Other borrowing costs are charged to
 revenue.
 
 17.  Events occurring after the Balance sheet date
 
 Where material, events occurring after the date of the Balance Sheet
 are considered upto the date of approval of accounts by the Board of
 Directors.