Contents
Overview
01 Highlights
03 Chairman’s Statement
05 Chief Executive’s Review
Corporate Governance
11 Board and Executive Management
12 Directors’ Report
16 Corporate Governance
Financial Statements
19 Independent Auditor’s Report
21 Consolidated Statement of Financial Position
23 Consolidated Statement of Comprehensive Income
24  Consolidated Statement of Changes in Equity
25 Consolidated Statement of Cash Flow
27 Notes to Consolidated Financial Statements o verview
Indus Gas Limited (“Indus”) is focused on oil and gas exploration and development in 
Rajasthan, India in Block RJ-ON/6. Indus owns 90% participating interest in the Block 
(excluding SGL gas field, in respect of which its participating interest is 63%). Other partners 
in the block are (i) Focus Energy Ltd., which operates the Block, and (ii) Oil and Natural Gas 
Corporation (ONGC), India, which is the licensee of the Block. The ‘Participative Interest’ 
of Indus as mentioned above is held through its wholly owned subsidiaries i.e. iServices 
Investment Limited and Newbury Oil Company Limited. The Block currently measures an area 
of 4,026 km² and lies onshore in the highly prospective mid Indus Basin. The first discovery 
in the block was made in 2006 and the first commercial production commenced in 2010. As 
per the reserve estimation report by Senergy Plc of UK published in December 2012, the 2P 
recoverable reserves, 2C contingent & best estimate prospective resources in the block are 
5.45 tcf of gas. 
  1
HigHligHts
sgl F ield d evelopment
•	 Gas prices are expected to increase to US$ 8.4 per mmbtu in FY 2014-15 and above 
US$ 10 per mmbtu for FY 2015-16 onwards post Government approval – expected 
to be reflected in new gas sales contract being negotiated and existing contracts post 
renewal in October 2015. 
•	 Production ramp up completed in September 2012 including installation of a CO2 
removal facility of 65 mmcf/d. These facilities are in respect of Phase II gas sales 
quantities of 33.5 mmcf/d contracted with GAIL (India) Ltd. Notice for ‘Take or Pay 
(ToP)’ for the second phase of production became effective from 1
st
 October 2012. 
Indus share of the ToP revenue invoiced during FY -2012-13 is US$ 11.66 mn. 
•	 2P reserves increased from 307 bcf to 573 bcf, an increase of approximately 86%, 
whereas the total reserves/resources have increased from 4.273 tcf to 5.454 tcf, an 
increase of approximately 27.6%, as published in the updated CPR in December 2012.
•	 Successful drilling of a number of new appraisal and development wells. 
•	 On-going negotiation for supply of additional 28 mmscfd (net of CO2) to state owned 
power company ‘Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL)’ through 
GAIL is in advanced stages. With the approval of the new regulated Gas pricing 
formula, the way for the signing of this contract has also been cleared. The turbine for 
additional 160 MW capacity has already reached the RRVUNL premises at Ramgarh 
and the installation is to begin soon. 
o perational (Cumulative as on 31
st
 mar CH 2013)
•	 Acquired, processed and interpreted 1630.53 km
2
 of 3D seismic data as of 31
 
March 
2013, with additional 18.09 km
2
 of 3D seismic data acquired between April-July  2013.
•	 Acquired, processed and interpreted 1,037.275 line km of 2D seismic data. 
•	 During the year completed eight appraisal wells and three development wells. A total 
of 40 appraisal and development wells have been drilled as of 31
st
 March 2013 
averaging 3,441 meters per well.
FinanCial
•	 Adjusted consolidated revenues, operating profit and profit before tax of respectively 
US$ 19.72 mn, US$16.20 mn & US$ 14.73 mn after considering and including a 
management adjustment for “ToP” receipts of US$ 11.66 mn for the year. Reported 
consolidated revenues, operating profits & profit before tax of respectively US$  8.06  mn, 
US$ 4.54 mn & US$ 3.07 mn for the year excluding “Take or Pay” amount. Provision 
of notional deferred tax liability of US$ 1.68 mn as per IFRS requirements. Given the  2
Group’s carried forward capital depreciation allowances, management believes this is 
not likely to be payable for many years if at all. 
•	 Total net cash investment of US$ 80.17 mn during the year in respect of appraisal and 
development of the Block. Partly financed from net incremental loans from banks of 
US$ 21.98 mn and increase in related party unsecured loans and payables of US$ 
59.09 mn.
•	 Principal and Interest payments of term loan facilities amounted to US$ 17.32 mn and 
US$ 6.71 mn, respectively.  3
CHairman ’s s tatement
It is my pleasure to present to shareholders the Fifth Annual Report and Consolidated Financial 
Statements of Indus Gas Limited (the “Company”), covering the financial year from 1
st
 April 
2012 to 31
st
 March 2013.
The year 2012-13 has been a very eventful one for the Company. The much awaited decision 
of the Government to increase the price of domestic gas has finally come. The domestic gas 
prices will henceforth be based on a formula, according to which the price of domestic gas 
in India for 2014-15 is estimated at US$ 8.4 per mmbtu and for 2015-16 at above US$ 10 
per mmbtu. The prime objective of the Government approved formulae is to synchronise the 
domestic gas prices with the import price of Liquid natural gas in the next few years. The effect 
should be primarily to encourage more oil and gas exploration in the energy starved country. 
The current prices of imported LNG in India is somewhere between US$ 15-18 per mmbtu. 
During the year the Company has also completed the necessary SGL Field Development to 
increase production capacity to meet the Phase II contracted gas sales quantities of around 
33.5 mmcf/d. After completion of Phase II ramp up, the Company has started receiving 
‘Take or Pay (ToP)’ Payments for the enhanced gas quantity as per the agreement. The ToP 
started from 1
st
 October 2012 and since then the Company has been assured of receipts for 
at least 90% of the contracted quantity of 33.5 mmscfd (net of CO2). This ToP arrangement is 
significant in ensuring the servicing of the existing debt obligations, as well as raising further 
resources for the appraisal and further development of the block. 
The Company is also at a very advanced stage of signing another off take contract for 
28 mmscfd (net of CO2) with GAIL on similar terms and conditions as the existing contract, 
except for the price. The ultimate consumer will be the same state power utility which has 
already ordered and received a 160 MW turbine on the strength of the gas to be supplied by 
the Company and its consortium partners. As this will be contracted at an enhanced price, the 
Company expects to more than double its revenues with this contract once supplies under the 
new arrangements commence.
Further, in view of the requirement to complete the appraisal activities under the PSC in a 
timely manner, the Company has focused on drilling appraisal wells to maximize the potential 
development area to be retained out of the current 4,026 km
2
 discovery area. During the year, 
the company has completed 8 appraisal wells across the entire block and the results have 
been quite encouraging. 
The Company has received continued financial support from existing lenders to enable it to 
make the required investment in the Block. Indus has discharged all its repayment obligations 
on a timely basis. The debt of US$ 40 mn sanctioned earlier in the year has been disbursed  4
during the period. The funds raised from new debt were primarily used for appraisal activities 
in the block. 
As we look forward to another eventful year, I would like to thank all our stakeholders, 
partners and lenders for providing the required support and encouragement. I also want to 
recognise the efforts of the operator, for their success in the quest for new reserves as well as 
commercialisation of the existing reserves.
Marc HoltzMan
Chairman
17 September 2013  5
CHieF exeCutive ’s r eview
We have had another active year and I am pleased to report significant progress across 
several areas. Our stated business plan remains on track and we continue to achieve this 
while maintaining compliance with the terms of our Production Sharing Contract, applicable 
laws and sound standards of health and safety. We have successfully started the second phase 
of production, as per the ‘Gas Sale Contract’ with GAIL, and the enhanced revenue/receipts 
commenced from 1
st
 October 2012. We have also continued with our appraisal program 
and have completed significant drilling and testing, confirming and establishing further gas 
presence. During the year, we also obtained a new reserve report which significantly increased 
our reserves and resources. A summary of activities since April 2012 is provided below:
sgl F ield d evelopment
During the year, a total quantity of 2,444 mmscf of gas was produced from the field and 
supplied to GAIL. There were no major breakdowns and our buyer met their respective 
obligations under the ‘Take or Pay (ToP)’ agreement. The ToP obligation on the second phase 
production for GAIL started from 1
st
 October and the Company invoiced a total ToP amount 
of US$ 11.66 mn in addition to the sales revenue of US$ 8.06 mn from gas supplies, during 
the year. With the start of the second phase, the price of gas has also gone up to US$ 5.00 
per mmbtu. 
For implementation of this Phase II, the required Gas Gathering Station (‘GGS’) including 
the gas processing plant, the CO2 removal plant and other equipment has been successfully 
installed. A sufficient number of production wells have also been drilled and completed. 
As part of its future gas development, the Company is negotiating for another off take 
agreement with GAIL for the supply of an additional 28 mmscfd (net of CO2) gas for a 
new 160 MW power plant proposed to be set up in Ramgarh, alongside the existing power 
generation capacity of 270 MW. The ultimate gas buyer, Rajasthan Rajya Vidyut Utpadan 
Nigam Limited (RRVUNL), the State Electricity Company in Rajasthan, has already received 
the turbine and is soon to start its installation. This plant is solely based on the enhanced gas 
supplies from the SGL field. There is no other source of gas nearby and the imported gas is 
very costly, with no pipeline infrastructure to transport imported gas. The recent price increase 
approval by the Indian Government will greatly help in finalizing and the signing of this new 
off take agreement. 
d rilling , s eismiC , Completion o perations and r eserves
Operational activities over the last year have largely followed the Group’s various objectives: 6
a) appraisal drilling covering as large an area as possible to be able to retain the 
maximum potential development area upon completion of the appraisal phase in late 
2013 under the Production Sharing Contract; 
b) drilling and completion of production wells for the SGL Field Development continued 
as planned to meet contracted gas sale requirements; 
c) testing various wells previously drilled, where gas shows were encountered to enable 
the Group to increase its reserve base; and 
d) testing the tight gas recovery potential in addition to conventional gas discovered in 
the Pariwar formation. 
During the year, Indus has been acquiring in phases new seismic data, giving more clarity on 
the block potential and providing additional drilling prospects. Some of these new prospects 
have been drilled or are being drilled and a few more are proposed to be drilled soon. Some 
of the existing formation which had earlier shown encouraging results have been further 
drilled and tested. A number of wells drilled during the year have shown the presence of gas. 
The details of the wells, which were drilled during the year, are as follows:
SGL-9 (3155m) Gas Producer (Pariwar)
Well SGL-9 terminated at 3155 metres within the uppermost parts of the P10 Reservoir zone. 
The well was completed with a barefoot open hole completion from 3048-3152m which 
covered the P20 zone and the uppermost P10 reservoir zone. The well is currently flowing 
from the P10 and P20 reservoir zones. 
SGL-10 (3311m) Gas Producer (Pariwar)
SGL-10 terminated at 3311m within the lowermost parts of the Pariwar P10 Reservoir 
Zone. The well was cased and a zone from 3171-3176m within the P20 reservoir zone was 
perforated and completed for production. This interval is currently on production. 
SGL-2A (3895m) Gas Producer (Pariwar)
SGL-2A was drilled to 3895m, terminating within the upper B&B Formation. The well 
encountered gas shows within the Upper B&B Target sands and the Pariwar Formation 
reservoir sands. The well was cased and a zone from 3163-3169m within the P10 Reservoir 
zone was perforated and completed for production and is producing currently. 
SX-3 (3606m) Gas Shows (Pariwar Formation)
Well SX-3 is located in the extreme south-western parts of Block RJ-ON/6. The primary aim of 
this well was to test Pariwar reservoir sands in which gas shows were encountered in nearby  7
SX-2, but completion complications in that well led to test results being inconclusive. Gas was 
encountered in the same Pariwar reservoir zones in SX-3 and subsequently an interval from 
3294-3299m was selected for perforation. This interval has flowed gas to surface during 
testing. Testing of additional intervals will be undertaken soon to determine commerciality. 
SU–1(SUHF-1) (4003m) Gas Shows (Pariwar and B&B Formations)
Appraisal well SU-1 terminated in the lower B&B sands and encountered gas shows within 
the Pariwar and B&B Formations. At present, one zone from the lower B&B Formation target 
interval has been perforated from 3867-3870m and gas has been recovered to surface from 
this zone but with low rates of flow. This interval is currently under assessment for further 
testing and potential hydro fracture stimulation. On the basis of well log analysis one further 
zone in the lower B&B, plus two upper B&B and two additional Pariwar Formation zones have 
been identified as potential targets for further testing. 
S – 97 (3341m) Gas Shows (Pariwar Formation)
S-97 terminated in the upper parts of the Pariwar Formation in which key gas shows were 
encountered from the target reservoir zones. An initial open hole Drill Stem Test (DST) from 
3129-3182m flowed gas to surface with a FTHP of 200 psi on a 2” choke. A subsequent zone 
from 3175-3178m was perforated which flowed gas and water to surface. This well is under 
review for further testing.
EP – 2A (4146m) Gas Shows (Pariwar and B&B Formation)
Key gas shows have been encountered in the main Pariwar reservoir zones and the upper B&B 
Formation sands in well EP-2A, with two zones (3808-3811m and 3846-3870m) currently 
high-graded for further testing in the upper B&B Formation.
PR – 2 (3269m) Gas shows (Pariwar Formations)
PR-2 terminated in the upper parts of the Pariwar Formation in which key gas shows were 
encountered in the main P10 Pariwar reservoir zone sands. A perforation interval from 
3157m-3165m successfully flowed gas to surface but sustained flow rates were low. This 
interval and an additional interval with good gas shows based on wire line log analysis are 
under review for further testing and potential hydro fracturing stimulation.
NQL -1 (3635m) Gas shows (Pariwar Formations)
Well NQL-1 terminated in the uppermost B&B Formation. The well has encountered multiple 
zones with gas shows based on drill shows and wire line log analysis, with eight potential 
zones in total are currently under review for further testing. 8
Brent – 1 (3254m) Dry Hole Minor Gas shows only
Well BRENT-1 terminated in the uppermost Jaisalmer Formation. This well was drilled in 
a structurally shallow/up-dip location to the east of the other wells in RJ-ON/6 to test the 
eastern extent of the Pariwar/B&B Petroleum System. Minor gas shows were encountered in 
the Pariwar P10 reservoir zone and mid B&B Formation but no objects have been currently 
identified for further testing.
LILOI –1 (3384m) Gas shows (Pariwar Formations)
Key gas shows were encountered in LILOI-1 well in the main Pariwar P10 reservoir zone in 
which the well terminated. A zone from 3157-3165m was perforated which has flowed gas 
to surface, albeit with sub-commercial flow rates recorded to-date. This zone and two further 
Pariwar P10 reservoir intervals are currently under review for further testing.
During the year, the Company has completed eight appraisal wells and has encountered 
gas shows in a large number of these wells. Most of these wells are in testing stages and are 
critical in establishing our right to retain the maximum area in the block, once the appraisal 
period comes to an end by the end of this year. This will also help us in establishing more 
reserves and resources. Since many of these wells have multi-zone gas shows, the Company 
is evaluating an optimum strategy for multi-zone testing and completion. 
In December 2012, Indus published an updated reserves report, reflecting work done since 
2010 but, due to timing, excluded wells drilled outside the SGL area in the second half of 
2012. The report saw a significant increase in both reserves and resources, with gross 2P 
reserves increased to 573 Bcf from 307 Bcf in 2010. Net 2P reserves increased from 210 Bcf 
to 449 Bcf. 2C gross contingent resource also saw a meaningful increase, from 1,808 Bcf to 
2,699 Bcf, and over 1 Tcf of gross prospective resource was attributed to wells outside the SGL 
development area.
FinanCials
During the financial year, the Company supplied 2,444 mmscf of gas and invoiced revenues of 
US$ 8.06 mn (2011/12 US$ 6.76 mn), resulting in reported operating profit of US$ 4.54 mn 
(2011/12 US$3.98 mn). The reported profit after tax was US$ 1.39 mn (2011/12 
US$1.36 mn) after considering foreign exchange gains of US$ 0.03 mn and interest costs of 
US$ 1.49 mn. 
Indus additionally received take or pay payment of US$ 11.66 mn for the period, which is 
considered as deferred revenues and shown as liabilities since these receipts can be potentially 
set off against future gas supplies to GAIL, provided such supplies are over and above 90% 
of the contracted quantities, subject to certain restrictions as to the period in which such set off 
can be made. An amount of US$ 5.08 mn is shown as current liabilities and the remaining  9
US$ 6.58 mn is shown as non-current liabilities. Current liabilities include the maximum 
amount for which the Company is obliged to supply gas against the ToP amount received, in 
the next twelve months. Further the Company is not obliged to supply the gas over and above 
100% of the contracted quantities in any given period. In the event, the set-off terms are not 
complied with, the Company has no further obligation to return back ToP amounts. Since the 
amount of “ToP” invoiced is non-refundable, the management considers this amount as a 
revenue & profit adjustment and accordingly adjusted consolidated revenues, operating profit 
and profit before tax for the year were respectively US$ 19.72 mn, US$16.20 mn & US$ 
14.73 mn after including “ToP” amount of US$ 11.66 mn.
While, the Company is not expected to pay any significant taxes on its income for many years 
in view of 100% deduction allowed under Indian income tax act on the capital expenses in 
the Block, the Company has accrued notional non-cash deferred tax liability of US$ 1.68 mn 
as per IFRS requirements. 
Post this deferred tax liability provision, the net profit for the year was US$ 1.39 mn.
The expenditure on exploration and evaluation assets during the year was US$ 53.57 mn. 
Also subsequent to the certification of new 2P reserves of 266 bcf in the SSF area within 
the SGL field, an amount of US$ 76.14 mn has been transferred from exploration and 
evaluation assets to development assets. The value of development assets and other tangible 
plant and machinery has increased US$ 105.19 mn, including the amount of US$ 76.14 mn 
transferred from exploration and evaluation assets as mentioned above, during the period. 
The development assets amortised on the gas produced during the year was US$ 1.51 mn. 
The current assets (excluding cash) as of 31 March 2013 stood at US$ 16.17 mn, which includes 
US$ 5.97 mn of inventory and US$ 9.93 mn of trade receivables. The trade receivables are 
mainly on account of receivables of the fourth quarter ToP amount of US$ 6.15 mn and the 
‘Annual ToP’ amount of US$ 2.80 mn billed on the last day of the year. The current liabilities 
of the Company, excluding the related party liability of US$ 55.85 mn and current portion of 
long term debt of US$ 16.96 mn, stood at US$ 5.14 mn. This comprised mainly of deferred 
revenue of US$ 5.08 mn and accrued expenses and liabilities of US$ 0.06 mn.
As of 31 March, the outstanding term loan of the Company was US$ 119.18 mn, out of which 
US$ 16.96 mn was categorised as repayable within a year and the remaining US$ 102.22 mn 
has been categorised as long term liability. The Company utilised a term loan of US$ 40 mn 
during the year and its repayment has commenced from June 2012. During the year, the 
Company has repaid an amount of US$ 17.32 mn of the outstanding term loan facilities, as 
per the scheduled repayment plan. 
In view of the delay in the implementation of Phase II, the funding requirements of the Company 
were met primarily through continued financial support from Gynia Holdings Ltd. (“Gynia”) (a 
significant shareholder and a related party). Accordingly, the amount payable to Gynia has  10
increased by US$ 63.51 mn from US$ 42.54 mn from 31 March 2012 to US$ 106.05 mn as 
of 31 March 2013.The Gynia loan is unsecured and carries an interest calculated @6.5% per 
annum which is accrued and will be paid only at final maturity of the loan amount. Out of this 
payable, an amount of US$ 52.6 mn is subordinated to the bank term loan and is repayable 
(both interest and principal) only after the entire term loan availed from the bank lenders have 
been paid off. Balance of Gynia loan is payable in the year ending 31 March 2019. 
In addition to the Gynia Loan, the Company has a short term facility payable of US$ 55.85 mn 
(FY 2011-12: US$59.40 mn) due to Focus Energy Ltd. (“Focus”), a related party. Focus is the 
Operator of the block and Indus is obliged to bear its proportion of the costs and expenses 
borne by the Operator in respect of the block. An interest amount of 6.5% is payable on 
the outstanding amount due to Focus, in accordance with the operating and assignment 
agreement for the block. Both the Gynia loan and Focus payables are contracted on usual 
commercial terms and on an arm’s length basis.
Indus expects to meet its capital investment requirements during FY 2013-14, primarily 
from loans and revenues from gas sales. The Company also expects to be able to contract 
additional debt financing from banks/institutions for the expenditure proposed to be incurred 
for FY 2013-14 and onwards. With the start of the second phase of production, the Company 
has sufficient cash flows to be able to support additional debt.
o utlook
During the next twelve months, we look forward to continuing the extensive appraisal drilling 
and testing campaign to be able to establish the maximum potential development area and 
additional reserves. This will be critical from the perspective of retaining as much prospective 
area of the block as possible after the appraisal period end in late 2013. We also look 
forward to progressing and concluding discussions with GAIL for the supply of additional 
quantities of gas to the RRVUNL owned power plant expansion.
a jay Kalsi
Chief Executive Officer
17 September 2013  11
Board and exeCutive management
marC Holtzman (53) – CHairman & n on exeCutive d ireC tor
Mr. Holtzman is Chairman of Meridian Capital Asia and has more than three decades of 
international business, financial, political and public service experience in the United States, 
Russia and Eastern Europe and Asia as well as having served as Vice Chairman of Barclays 
Capital, vice Chairman of ABN Amro Bank, co-founder of MeesPierson EurAmerica (later 
acquired by ABN Amro), senior advisor to Salomon Brothers, several partnerships in 
Kazakhstan’s financial sectors, President of the University of Denver, Secretary of Technology of 
the state of Colorado and senior positions in various committees and non-profit organizations. 
He holds a BA in economics from Lehigh University.
a jay k alsi (52) – CHieF exeCutive o FFiCer
Mr. Kalsi is a successful businessman from India who has established and built a portfolio 
of companies in a range of business sectors including oil and gas, footwear, real estate and 
business process outsourcing. He has international business experience, which includes oil 
and gas industry operating experience with oil and gas assets in India (both onshore and 
offshore). He holds an M. Phil in Economics from Cambridge University and a BSc (Economics) 
from the London School of Economics.
j oHn BeHar (43) – n on exeCutive d ireC tor
Mr Behar has over 18 years financial services and investment banking experience, most 
recently involved in listings on the Luxembourg Stock Exchange for Indian mid-market 
companies, as well as private equity transactions across a range of countries and deal sizes. 
He is the founder and MD of Prospect Capital, a London based corporate finance advisory 
firm, and has also acted as a consultant to ICICI Bank UK, part of the major Indian banking 
and private equity group. Mr Behar holds an MBA from Cass Business School. 12
d ireC tors ’ r eport
The Directors present their report and the financial statements of Indus Gas Limited (“the 
Company”) and its subsidiaries, iServices Investments Ltd and Newbury Oil Co. Ltd (collectively 
the “Group”), which covers the year from 1
st
 April 2012 to 31
st
 March 2013.
prinCipal a Ctivity and r eview oF tHe Business
The principal activity of the Company is that of oil and gas exploration, development and 
production in India.
r esults and d ividends
The trading results for the year and the Group’s financial position at the end of the year are 
shown in the attached financial statements. The Directors have not recommended a dividend 
for the year. (FY 2011-12: £nil).
r eview oF Business and Future d evelopments
A review of the business and likely future developments of the Company are contained in the 
Chairman’s statement and the CEO’s review, given above. 
d ireC tors and d ireC tors ’ interests
The interests of the Directors of the Company during the year are noted in the Financial 
statements.
d ireC tors r emuneration
The Directors’ remuneration for the year ended 31
st
 March 2013 was:
remuneration (£) remuneration (Us$)
Ajay Kalsi 135,000 199,667
John Scott 91,667 144,940
Marc Holtzman 40,000 62,868
John Behar 25,000 39,650
Total Director’s Remuneration 291,667 447,125
The Director remuneration consists of monthly/quarterly compensation as per the agreed 
terms. There are no further cash payments or benefits provided to Directors. 13
d ireC tors s Hare o ptions
The share options in force at 31
st
 March 2013 and held by current/past directors are as 
follows:
no. of options 
Granted
no. of options 
Vested
no. of options 
remaining to be 
Vested
Exercise 
Price
John Scott 100,000 100,000 0 164p
Marc Holtzman 60,000 60,000 0 164p
John Behar 50,000 50,000 0 164p
210,000 210,000 0
During the year ended 31 March 2013, Mr. Marc Holtzman has exercised his right of share 
option for 60,000 Shares and shares have been allotted to him.
Mr. John Scott and Mr. John Behar have exercised their right of share option in June 2013 and 
the allotment of shares is under process. 
FinanCial instruments
Details of the use of financial instruments by the Company are contained in note 29 to the 
attached financial statements.
r elated party t ransa Ctions
Details of significant related party transactions are contained in note 17 and note 23 to the 
attached financial statements.
internal Control
The Directors acknowledge their responsibility for the Company’s system of internal control 
and for reviewing its effectiveness. The system of internal control is designed to manage the 
risk of failure to achieve the Company’s strategic objectives. It cannot totally eliminate the 
risk of failure but will provide reasonable, although not absolute, assurance against material 
misstatement or loss.
g oing ConCern
After making enquires, the Directors have a reasonable expectation that the Company will 
have adequate resources to continue in operational existence for the foreseeable future. This 
expectation is based on estimates of future potential revenues from the RJ-ON/6 Block that 
the Company will derive from sale of hydrocarbon reserves/resources and availability of 
adequate debt funding from banks, financial markets as well as related parties to support  14
capital investment to enable the Company to undertake appraisal and development activities 
in the Block. For this reason, they continue to adopt the going concern basis in preparing the 
financial statements.
d ireC tors ’ r esponsiBilities
The Directors are responsible for preparing the Directors’ reports and consolidated financial 
statements for each financial year which give a true and fair view of the state of affairs of 
the Group and of the profit or loss of the Group for that year. In preparing those financial 
statements the Directors are required to:
•	 Select suitable accounting policies and apply them consistently;
•	 Make judgements and estimates that are reasonable and prudent;
•	 State whether International Financial Reporting Standards have been followed subject 
to any material departures disclosed and explained in the financial statements; and
•	 Prepare consolidated financial statements on a going concern basis unless it is 
inappropriate to presume that the Group will continue in business.
The Directors confirm that the financial statements comply with the above requirements.
The Directors are responsible for keeping proper accounting records which disclose with 
reasonable accuracy at any time the financial position of the Company and of the Group 
to enable them to ensure that the financial statements comply with the requirements of the 
Companies (Guernsey) Law, 2008. They are also responsible for safeguarding the assets of 
the Company and hence for taking reasonable steps for the provision and detection of fraud 
and other irregularities.
The Directors are responsible for maintaining the integrity of the corporate financial information 
included on the Group’s website.
Legislation in Guernsey governing the preparation and dissemination of financial information 
may differ from legislation in other jurisdictions.
To the best of our knowledge and belief:
•	 The financial statements have been prepared in accordance with International Financial 
Reporting Standards, as adopted by the European Union;
•	 Give a true and fair view of the financial position and results of the Group; and
•	 The financial statements include an analysis of the principal financial instruments 
specific risks and uncertainties faced by the Group. There has not been any material 
change in business risks and uncertainties as described in the Admission Document 
dated 29
th
 May 2008 save for the continuous safe production of gas from the SGL 
Field on an ongoing basis. 15
a uditors
All of the current Directors have taken all steps that they ought to have taken to make themselves 
aware of any information needed by the Group’s Auditors for the purposes of their audit and 
to establish that the Auditors are aware of that information. The Directors are not aware of 
any relevant audit information of which the Auditors are unaware.
By order of the Board
Director
17 September 2013  16
Corporate g overnanCe
The Directors recognise the importance of sound corporate governance and intend for the 
Company to comply with the main provisions of the QCA Guidelines and Guernsey regulations 
insofar as they are appropriate given the Company’s size and stage of development. The 
Company may take additional Corporate Governance measures beyond QCA guidelines 
and Guernsey regulations as may be appropriate considering Company’s operations from 
time to time.
Board oF d ireC tors
The Board is responsible for the proper management of the Company. The Board comprises 
of one Executive Director, Ajay Kalsi (CEO) and two Non-Executive Directors, Marc Holtzman 
(Chairman) and John Behar. The resume of the board members is as outlined in the section 
‘Board and Executive Management’ outlines above. 
The Executive Directors bring knowledge of the oil and gas industry and a range of general 
business skills. The Non-Executive Directors form a number of committees to assist in the 
governance of the Company and details are below. 
All Directors have access to independent professional advice, at the Company’s expense, if 
and when required.
s uB-Committees
The Board has appointed the three sub-committees outlined below. All of the sub-committees 
have met during the year as required.
a udit Committee
The Audit committee comprises of John Behar as chairman and Marc Holtzman. The committee 
is responsible for ensuring that the financial performance of the Company is properly monitored 
and reported on and for meeting with the auditors and reviewing findings of the audit with 
the external auditor. It is authorised to seek any information it properly requires from any 
employee and may ask questions of any employee. It meets the auditors once per year without 
any members of management being present and is also responsible for considering and 
making recommendations regarding the identity and remuneration of such auditors.
r emuneration Committee
The Remuneration committee comprises of Marc Holtzman as chairman and John Behar. The 
committee considers and recommends to the Board the framework for the remuneration of the 
executive directors of the Company and any other senior management. It further considers  17
and recommends to the Board the total individual package of each executive director including 
bonuses, incentive payments and share options or other share awards. In addition, subject to 
existing contractual obligations, it reviews the design of all share incentive plans for approval 
by the Board and the Company’s shareholders and, for each such plan, recommends whether 
awards are made and, if so, the overall amount of such awards, the individual awards to 
executive directors and performance targets to be used. No director is involved in decisions 
concerning his own remuneration.
n omination Committee
The Nomination committee comprises Marc Holtzman as Chairman and John Behar. The 
committee considers the selection and re-appointment of Directors. It identifies and nominates 
candidates to all board vacancies and regularly reviews the structure, size and composition 
of the board (including the skills, knowledge and experience) and makes recommendations to 
the Board with regard to any changes.
s Hare d ealing
The Company has adopted a share dealing code (based on the Model Code) and the 
Company takes all proper and reasonable steps to ensure compliance by Directors and 
relevant employees.
t He City Code on t akeovers and mergers
The Code applies to offers for all listed and unlisted public companies considered by the Panel 
resident in the UK, the Channel Islands or the Isle of Man. The Panel normally considers a 
company to be resident only if it is incorporated in the United Kingdom, the Channel Islands or 
the Isle of Man and has its place of central management in one of those jurisdictions. Although 
the Company is incorporated in Guernsey and its place of management is in Guernsey, the 
Panel considers that the code does not apply to the Company. It is emphasised that although 
the Ordinary Shares trades on AIM, the company is not subject to takeover regulations in 
the UK. However, certain provisions analogous to parts of the Code in particular the making 
of mandatory offers have been incorporated into the Articles which are available on the 
Company website, www.indusgas.com.
d isClosure and t ransparenC y r ules
As a company incorporated in Guernsey, Shareholders are not obliged to disclose their 
interests in the Company in the same way as shareholders of certain companies incorporated 
in the UK. In particular, the relevant provisions of chapter 5 of the DTR do not apply. While 
the Articles contain provisions requiring disclosure of voting rights in Ordinary Shares which 
are similar to the provisions of the DTR, this may not always ensure compliance with the  18
requirements of Rule 17 of the AIM Rules. Furthermore, the Articles may be amended in the 
future by a special resolution of the Shareholders.
Control By s igniFiC ant s HareHolder
Gynia Holdings Limited, along with its wholly owned subsidiary Focusoil Inc. owns a significant 
percentage of outstanding shares of the Company. As a significant shareholder, Gynia could 
exercise significant influence over certain corporate governance matters requiring shareholder 
approval, including the election of directors and the approval of significant corporate 
transactions and other transactions requiring a majority vote.
The Company, Arden Partners (Broker & Nomad), Gynia and Mr Ajay Kalsi have entered 
into a relationship agreement to regulate the arrangements between them. The relationship 
agreement applies for as long as Gynia directly or indirectly holds in excess of thirty per cent 
of the issued share capital of the Company and the Company’s shares remain admitted to 
trading on AIM. The relationship agreement includes provisions to ensure that:
 i. The Board and its committees are able to carry on their business independently of the 
personal interests of Gynia;
 ii. The constitutional documents of the Company are not changed in such a way which would 
be inconsistent with the relationship agreement;
 iii. All transactions between the Group and Gynia (or its affiliates) are on a normal commercial 
basis and at arm’s length;
 iv. In the event of a conflict of interest between Gynia and the Board, no person who is 
connected with Gynia is appointed as a Non-Executive Director of the Company and no 
existing Non-Executive Director is removed as a director of the Company unless such an 
appointment or removal has been previously approved by the nomination committee of the 
Board and that to the extent that any previously approved by the nomination committees 
concerns the composition of the Board which has been approved by the Board requiring 
the approval of the shareholders of the Company then Gynia will vote its Ordinary Shares 
in favour; and
 v. Certain restrictions are out in place to prevent interference by the Shareholder with the 
business of the Company. 19
independent a uditor’s report to the m embers 
of indus g as limited
We have audited the consolidated financial statements of Indus Gas Limited (the ‘Company’) 
for the year ended 31 March 2013 which comprise the Consolidated Statement of Financial 
Position, the Consolidated Statement of Comprehensive Income, the Consolidated Statement 
of Changes in Equity, the Consolidated Statement of Cash Flow and the related notes. The 
financial reporting framework that has been applied in their preparation is applicable law and 
International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU).
This report is made solely to the company’s members, as a body, in accordance with Section 
262 of The Companies (Guernsey) Law, 2008. Our audit work has been undertaken so that 
we might state to the company’s members those matters we are required to state to them in 
an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other than the company.
r espeC tive responsiBilities oF direC tors and auditors
As described in the Statement of Directors’ Responsibilities on page 14 the company’s directors 
are responsible for the preparation of the consolidated financial statements and for being 
satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the consolidated financial statements 
in accordance with applicable legal and regulatory requirements and International Standards 
on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices 
Board’s Ethical Standards for Auditors.
s Cope oF tHe audit oF tHe Consolidated FinanCial statements
An audit involves obtaining evidence about the amounts and disclosures in the consolidated 
financial statements sufficient to give reasonable assurance that the consolidated financial 
statements are free from material misstatement, whether caused by fraud or error. This includes 
an assessment of whether the accounting policies are appropriate to the Group’s circumstances 
and have been consistently applied and adequately disclosed; the reasonableness of significant 
accounting estimates made by the directors; and the overall presentation of the consolidated 
financial statements. In addition, we read all the financial and non-financial information in 
the annual report to identify material inconsistencies with the audited financial statements. If 
we become aware of any apparent material misstatements or inconsistencies we consider the 
implications for our report. 20
o pinion on tHe Consolidated FinanCial statements
In our opinion, the consolidated financial statements:
•	 give a true and fair view of the state of the Group’s affairs as at 31 March 2013 and 
of its profit for the year then ended; 
•	 have been properly prepared in accordance with IFRSs as adopted by the EU; and 
•	 have been prepared in accordance with the requirements of The Companies (Guernsey) 
Law, 2008.
matters on wHiCH we are required to report By exCeption
We have nothing to report in respect of the following matters where The Companies (Guernsey) 
Law, 2008 requires us to report to you, if in our opinion:
•	 the group has not kept proper accounting records; or
•	 the consolidated financial statements are not in agreement with the accounting records 
and returns; or
•	 we have not received all the information and explanations, which to the best of our 
knowledge and belief are necessary for the purposes of our audit. 
Grant thornton limited 
chartered accountants
st Peter Port, Guernsey, channel islands 
17 september 2013 21
Consolidated s tatement oF FinanCial position
(All amounts in United States Dollars, unless otherwise stated)
notes 31 March 2013 31 March 2012
assEts
non-current assets
Intangible assets: exploration and evaluation 
assets
6 18,427,390 40,997,873
Property, plant and equipment 7 317,593,083 212,407,163
Other assets 885 885
total non-current assets 336,021,358 253,405,921
current assets
Inventories 10 5,974,616 7,949,584
Trade receivables 9,926,029 796,047 
Current tax assets 230,856 114,322
Other current assets 11 43,125 126,546
Cash and cash equivalents 12 7,546,024 248,246
total current assets 23,720,650 9,234,745
total assets 359,742,008 262,640,666
liaBilitiEs anD EQUity
shareholders’ equity
Share capital 13 3,619,443 3,618,472
Additional paid-in capital 13 46,733,689 46,501,666
Currency translation reserve (9,313,781) (9,313,781)
Merger reserve 19,570,288 19,570,288
Share option reserve 21 324,865 398,569
Accumulated losses (790,587) (2,184,754)
total shareholders’ equity 60,143,917 58,590,460 22
Consolidated s tatement oF FinanCial position (Contd .)
(All amounts in United States Dollars, unless otherwise stated)
notes 31 March 2013 31 March 2012
liabilities
non-current liabilities
Long term debt from banks, excluding current 
portion
14 102,213,678 81,457,230
Provision for decommissioning 15 909,515 745,651
Finance lease obligations, excluding current 
portion
16 - 3,100
Deferred tax liabilities (net) 8 3,454,482 1,775,857 
Deferred revenue 9,018,610 -
Payable to related parties, excluding current 
portion
17 106,053,767 52,540,536
total non-current liabilities 221,650,052 136,522,374 
current liabilities
Current portion of long term debt from banks 14 16,962,446 15,415,367
Current portion of finance lease obligations 16 2,692 23,014
Current portion payable to related parties 17 55,845,886 49,402,804
Accrued expenses and other liabilities 59,929 257,602
Deferred revenue 5,077,086 2,429,045
total current liabilities 77,948,039 67,527,832 
total liabilities 299,598,091 204,050,206 
total equity and liabilities 359,742,008 262,640,666
(The accompanying notes are an integral part of these consolidated financial statements)
These consolidated financial statements were approved and authorised for issue by the board on 17 September 
2013 and was signed on its behalf by:
Director 23
Consolidated s tatement oF CompreHensive inCome
(All amounts in United States Dollars, unless otherwise stated)
notes
year ended
31 March 2013
year ended
31 March 2012
Revenues 8,063,811 6,762,763
Cost of sales (2,234,451) (1,052,416)
Gross profit 5,829,360 5,710,347
cost and expenses
Administrative expenses (1,293,823) (1,732,573)
income from operations 4,535,537 3,977,774
Foreign currency exchange gain 19 30,895 101,414
Interest expense (1,493,675) (946,284)
Interest income 35 50
Profit before tax 3,072,792 3,132,954 
income taxes 9
- Deferred tax expense (1,678,625) (1,776,474)
total comprehensive income for the year 
(attributable to the shareholders of the company) 1,394,167 1,356,480 
Earnings/(loss) per share
Basic 22 0.01 0.01
Diluted 0.01 0.01
Par value of each share in GBP 0.01 0.01
(The accompanying notes are an integral part of these consolidated financial statements) 24
Consolidated s tatement oF CHanges in equity
(All amounts in United States Dollars, unless otherwise stated)
common stock additional 
paid in 
capital
currency 
translation 
reserve
Merger 
reserve
share 
option 
reserve
accumulated 
losses
total 
shareholders’ 
equity
no. of shares amount
Balance as at 1 april 2011 182,913,924 3,618,472 46,501,666 (9,313,781) 19,570,288 386,381 (3,541,234) 57,221,792
Share based payment 
transactions
- - - - - 12,188 - 12,188
Transactions with owners - - - - - 12,188 - 12,188
Profit for the year - - - - - - 1,356,480 1,356,480 
Total comprehensive income for 
the year
- - - - - - 1,356,480 -
Balance as at 31 March 2012 182,913,924 3,618,472 46,501,666 (9,313,781) 19,570,288 398,569 (2,184,754) 58,590,460
Share based payment 
transactions
(Note-21)
60,000 971 232,023 - - (73,704) - 159,290
Transaction with owners 60,000 971 232,023 - - (73,704) - 159,290
Profit for the year - - - - - - 1,394,167 1,394,167
Total comprehensive income for 
the year
1,394,167 1,394,167
Balance as at 31 March 2013 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 324,865 (790,587) 60,143,917
(The accompanying notes are an integral part of these consolidated financial statements) 25
Consolidated s tatement oF CasH Flow
(All amounts in United States Dollars, unless otherwise stated)
notes
year ended 31 
March 2013
year ended 31 
March 2012
cash flow from operating activities
Profit before tax 3,072,792 3,132,954
adjustments
Unrealised exchange loss 85,555 3,268
Interest income (35) (50)
Interest expense 1,493,675 946,284
Share based payment 21 - 12,188
Depreciation and amortisation 7 1,509,277 484,055
changes in operating assets and liabilities
Inventories 10 1,974,968 (1,509,965)
Payable to related party-operating activities 2,543,964 1,892,333
Trade receivables (9,129,982) 376,005
Deferred revenue 11,666,651 314,372
Other current and non-current assets 83,421 (8,260)
Accrued expenses and other liabilities (197,443) 158,506 
cash generated from operations 13,102,843 5,801,690
Income taxes paid (116,534) (78,680)
net cash generated from operating activities 12,986,309 5,723,010
cash flow from investing activities
Investment in exploration and evaluation 
assets
A
6 (48,182,247) (24,100,129)
Purchase of property, plant and equipment
A
7 (31,983,111) (45,499,341)
Interest received 35 50
net cash used in investing activities (80,165,323) (69,599,420) 26
Consolidated s tatement oF CasH Flow (Contd .)
(All amounts in United States Dollars, unless otherwise stated)
notes
year ended 31 
March 2013
year ended 31 
March 2012
cash flow from financing activities
Repayment of long term debt from banks 14 (17,320,000) (11,790,000)
Proceeds from issue of shares 21 159,290 -
Proceeds from loans by related parties 17 59,086,130 26,040,883
Proceeds from long term debt from banks 14 39,295,868 52,385,604
Payment of interest (6,658,711) (4,767,424)
net cash generated from financing activities 74,562,577 61,869,063
net (decrease)/increase in cash and cash 
equivalents
7,383,563 (2,007,347)
cash and cash equivalents at the beginning of 
the year
248,246 2,252,815
Effects of exchange differences on cash and cash 
equivalents
(85,785) 2,778
cash and cash equivalents at the end of the 
year
12 7,546,024 248,246
(The accompanying notes are an integral part of these consolidated financial statements)
A
The movement of property, plant and equipment above, excludes the non-cash transfer from exploration and 
evaluation assets during the year, as explained in Note 6.  27
n otes to Consolidated FinanCial s tatements
(All amounts in United States Dollars, unless otherwise stated)
1. introduC tion
Indus Gas Limited (“Indus Gas” or “the Company”) was incorporated in the Island of Guernsey on 
4 March 2008 pursuant to an Act of the Royal Court of the Island of Guernsey. The Company was set up 
to act as the holding company of iServices Investments Ltd. (“iServices”) and Newbury Oil Co. Limited 
(“Newbury”). iServices and Newbury are companies incorporated in Mauritius and Cyprus, respectively. 
iServices was incorporated on 18 June 2003 and Newbury was incorporated on 17 February 2005. The 
Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 6 June 
2008. Indus Gas through its subsidiaries iServices and Newbury (hereinafter collectively referred to as 
“the Group”) is engaged in the business of oil and gas exploration, development and production.
Focus Energy Limited (“Focus”), an entity incorporated in India, entered into a Production Sharing 
Contract (“PSC”) with the Government of India (“GOI”) and Oil and Natural Gas Corporation Limited 
(“ONGC”) on 30 June 1998 for petroleum exploration and development concession in India known 
as RJ-ON/06 (“the Block”). Focus is the Operator of the Block. On 13 January 2006, iServices and 
Newbury entered into an interest sharing agreement with Focus and obtained a 65 per cent and 25 per 
cent share respectively in the Block. Consequent to this, the Group acquired an aggregate of 90 per cent 
participating interest in the Block and the balance 10 per cent of participating interest is owned by Focus. 
The participating interest explained above is subject to any option exercised by ONGC in respect of 
individual wells (already exercised for SGL field as further explained in Note 3).
2. general inFormation
The consolidated financial statements of the Group have been prepared in accordance with International 
Financial Reporting Standards (‘IFRS’) as endorsed by the European Union (‘EU’). The consolidated 
financial statements have been prepared on a going concern basis, and are presented in United States 
Dollar (US$).The functional currency of the Company as well as its subsidiaries is US$.
3. jointly Controlled assets
The Group is jointly engaged in oil and gas exploration, development and production activities along with 
Focus. This venture is a jointly controlled asset as defined under IAS 31: Interest in Joint Ventures. All rights 
and obligations in respect of exploration, development and production of oil and gas resources under the 
‘Interest sharing agreement’ are shared between Focus, iServices and Newbury in the ratio of 10 per cent, 
65 per cent and 25 per cent respectively. 
Under the PSC, the GOI, through ONGC has an option to acquire a 30 per cent participating interest in 
any discovered field, upon such successful discovery of oil or gas reserves, which has been declared as 
commercially feasible to develop.  28
Subsequent to the declaration of commercial discovery in SGL field on 21 January 2008, ONGC on 6 June 
2008 had exercised the option to acquire a 30 per cent participating interest in the discovered fields. 
On exercise of this option, ONGC is liable to pay its share of 30 per cent of the SGL field development 
costs and production costs incurred after 21 January 2008 and are entitled to a 30 per cent share in the 
production of gas subject to recovery of Contract costs as explained below. 
The allocation of the production from the field to each participant in any year is determined on the basis 
of the respective proportion of each such participant’s cumulative unrecovered Contract Costs as at the 
end of the previous year or where there are no unrecovered contract cost at the end of previous year on 
the basis of participating interest of each such participant in the field.
On the basis of above, gas production of the year ended 31 March 2013 is shared between Focus, 
iServices and Newbury in the ratio of 10 percent, 65 percent and 25 percent, respectively. 
The aggregate amounts relating to jointly controlled assets, liabilities, expenses and commitments related 
thereto that have been included in the consolidated financial statements are as follows:
31 March 2013 31 March 2012
Non-current assets 336,020,473 253,405,037
Current assets 5,974,614 7,949,584
Non-current liabilities 909,515 10,745,651
Current liabilities 55,848,578 49,425,818
Expenses (net of finance income) 2,543,964 1,537,740
Commitments NIL 15,660,379
The GOI, through ONGC, has option to acquire similar participating interest in any future successful 
discovery of oil or gas reserves in the Block.
4.  standards and interpretations issued But not eFFeCtive  
and yet to Be applied By tHe group
Summarised in the paragraphs below are standards, interpretations or amendments that have been 
issued until the date of approval of these consolidated financial statements and will be applicable for 
transactions in the Group but are not yet effective. These have not been adopted early by the Group and 
accordingly have not been considered in the preparation of the consolidated financial statements of the 
Group. Management anticipates that all of these pronouncements will be adopted by the Group in the 
first accounting period beginning after the effective date of each of the pronouncements. Information  29
on the new standards, amendments and interpretations that are expected to be relevant to the Group’s 
consolidated financial statements is provided below.
IFRS 9 Financial Instruments (Issued November 2009) (Effective from 1 January 2015 (but under 
exposure draft))
The IASB aims to replace IAS 39 Financial Instruments: Recognition and Measurement in its entirety with 
the replacement standard to be effective for annual periods beginning 1 January 2015. IFRS 9 is the first 
part of Phase 1 of this project. 
The main phases are: 
Phase 1: Classification and measurement
Phase 2: Impairment methodology
Phase 3: Hedge accounting
In addition, a separate project is dealing with de-recognition. Management has yet to assess the impact 
that this amendment is likely to have on the financial statements of the Group. However, they do not expect 
to implement the amendments until all chapters of the IAS 39 replacement have been published and they 
can comprehensively assess the impact of all changes.
a mendment (issued 28 October 2010) (Effective from 1 January 2015 (but under exposure draft))
In October 2010, the IASB amended IFRS 9 to incorporate requirements for classifying and measuring 
financial liabilities and derecognising financial assets and financial liabilities. Most of IAS 39’ s requirements 
have been carried forward unchanged to IFRS 9. Changes have however been made to address issues 
related to own credit risk where an entity takes the option to measure financial liabilities at fair value.
IFRS 10 Consolidated financial statements (Issued May 2011) (Effective from 1 January 2013)
IFRS 10 introduces a revised definition of control together with accompanying guidance on how to apply 
it. In contrast to IAS 27 and SIC-12, which resulted in different criteria for determining control being 
applied to special purpose vehicles, IFRS 10’s requirements will apply to all types of potential subsidiaries.
Though the standard is applicable to the Group the changes in the new standard from the last version are 
not likely to have an effect on the Group.
IFRS 11 Joint Arrangements (Issued May 2011) (Effective from 1 January 2013)
IFRS 11 supersedes IAS 31 Interests in Joint Ventures. It replaces IAS 31’s three categories of ‘jointly 
controlled entities’, ‘jointly controlled operations’ and ‘jointly controlled assets’ with two new categories - 
‘joint operations’ and ‘joint ventures’. The option of using proportionate consolidation for jointly controlled 
entities that was previously included in IAS 31 has been eliminated (equity accounting is now required for 
all joint ventures. Though the standard is applicable to the Group the changes in the new standard from 
the last version are not likely to have an effect on the Group.
IFRS 12 Disclosure of Interests in Other Entities (Issued May 2011) (Effective from 1 January 2013)
The new standard integrates and makes consistent the disclosure requirements for subsidiaries, joint 
arrangements, associates and unconsolidated structured entities. The new standard is intended to provide  30
transparency about the risks to which a reporting entity is exposed from its involvement with structured 
entities. The Group will be required to make additional disclosures as suggested by this new standard.
IFRS 13 Fair Value Measurement (Issued May 2011) (Effective from 1 January 2013)
The new IFRS does not affect which items are required to be ‘fair-valued’, but specifies how an entity 
should measure fair value and disclose fair value information. IFRS 13 has been developed to remedy 
this problem, by establishing a single source of guidance for all fair value measurements, clarifying the 
definition of fair value and related guidance and enhancing disclosures about fair value measurements 
(new disclosures increase transparency about fair value measurements, including the valuation techniques 
and inputs used to measure fair value).
The guidance in the standard would impact how the Group would fair value its financial instruments and 
give disclosures that are required by this standard, however considering the transactions in the Group, 
this standard is not likely to have an impact on the Group.
Consequential amendments to IAS 27 Consolidated and Separate Financial Statements and 
IAS 28 Investments in Associates and Joint Ventures (Issued May 2011) (Effective from 1 January 
2013)
IAS 27 now only deals with separate financial statements. IAS 28 brings investments in joint ventures into 
its scope. However, IAS 28’s equity accounting methodology remains unchanged.
The Group’s management has yet to assess the impact of these new and revised standards on the Group’s 
consolidated financial statements, however these are not likely to have an impact on the consolidated 
financial statements of the Group.
5. summary oF a CCounting poliCies
The consolidated financial statements have been prepared on a historical basis, except where specified 
below. A summary of the significant accounting policies applied in the preparation of the accompanying 
consolidated financial statements are detailed below:
5.1. Basis oF C onsolidation
The consolidated financial statements include the financial statements of the parent company and all of its 
subsidiary undertakings drawn up to 31 March 2013. Subsidiaries are all entities over which the Group 
has the power to control the financial and operating policies. Indus Gas obtains and exercises control 
through more than half of the voting rights. All subsidiaries have a reporting date of 31 March. 
Unrealised gains and losses on transactions between Group companies are eliminated. Where unrealised 
losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for 
impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have 
been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. 
Profit or losses of subsidiaries acquired or disposed of during the year are recognised from the effective 
date of acquisition, or up to the effective date of disposal, as applicable.  31
5.2. signiFiC ant a CCounting judgements and estimates
In preparing consolidated financial statements, Group’s management is required to make judgments, 
estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of 
contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues 
and expenses during the reporting period.  Although these estimates are based on management’s best 
knowledge of current events and actions, actual results may ultimately differ from those estimates. The 
management’s estimates for the useful life and residual value of tangible assets, impairment of tangible and 
intangible assets and recognition of provision of decommissioning represent certain particularly sensitive 
estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to 
accounting estimates are recognised in the period in which the estimate is revised if the revision affects 
only that period or in the period of the revision and future periods if the revision affects both current and 
future periods. Information about significant judgments, estimates and assumptions that have the most 
significant effect on recognition and measurement of assets, liabilities, income and expenses is provided 
in note 26.
5.3. Foreign CurrenCies
The consolidated financial statements have been presented in US$.
Foreign currency transactions are translated into the functional currency of the respective Group entities, 
using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Functional 
currency is the currency of the primary economic environment in which the entity operates. Foreign 
exchange gains and losses resulting from the settlement of such transactions and from the re-measurement 
of monetary items at year-end exchange rates are recognised in the profit or loss for the year.
Non-monetary items measured at historical cost are recorded in the functional currency of the entity using 
the exchange rates at the date of the transaction.
5.4. revenue reC ognition
Revenue from sale of natural gas and condensate production (a by- product) is recognised when the 
significant risks and rewards of ownership have been transferred, which is when title passes to the 
customer. This generally occurs when product is physically transferred into a vessel, pipe or other delivery 
mechanism. 
Revenue is stated after deducting sales taxes, excise duties and similar levies.
Per the ‘Take-or-Pay’ agreement, GAIL (India) Limited (‘GAIL’ or the ‘customer’) is committed towards 
taking a certain minimum quantity of gas and paying for any related shortfall. The Group’s entitlement to 
receive revenue for any shortfall is recorded as trade receivables with a corresponding credit to deferred 
revenue. Until the expiry of the contracted period, the Group continues to have an obligation to deliver the 
deficit to GAIL. Revenue for the deficit quantity would be recognised at the earlier of delivery of physical 
quantity towards the deficit to GAIL or at the expiry of the contract period. 32
5.5. property , plant and equipment 
Property, plant and equipment comprises of development assets and other properties, plant and equipment 
used in the gas fields and for administrative purposes. These assets are stated at cost plus decommissioning 
cost less accumulated depreciation and any accumulated impairment losses. 
Development assets are accumulated on a field by field basis and comprise of costs of developing the 
commercially feasible reserve, expenditure on the construction, installation or completion of infrastructure 
facilities such as platforms, pipelines and other costs of bringing such reserves into production. It also 
includes the exploration and evaluation costs incurred in discovering the commercially feasible reserve, 
which have been transferred from the exploration and evaluation assets as per the policy mentioned in 
note 5.6. As consistent with the full cost method, all exploration and evaluation expenditure incurred till 
the date of the commercial discovery have been classified under development assets of that field. 
The carrying values of property, plant and equipment are reviewed for impairment when events or changes 
in circumstances indicate that the carrying values may not be recoverable.
An item of property, plant and equipment is derecognised upon disposal or when no future economic 
benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset 
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) 
is included in the profit or loss of the year in which the asset is derecognised. However, where the 
asset is being consumed in developing exploration and evaluation intangible assets, such gain or loss is 
recognised as part of the cost of the intangible asset.
The asset’ s residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, 
at each period end. No depreciation is charged on development assets until production commences. 
Depreciation on property, plant and equipment is provided at rates estimated by the management. 
Depreciation is computed using the straight line method of depreciation, whereby each asset is written 
down to its estimated residual value evenly over its expected useful life. The useful lives estimated by the 
management are as follows:
Extended well test equipment 20 years
Bunk houses 5 years
Vehicles 5 years
Other assets
Furniture and fixture 5 years
Buildings 10 years
Computer equipment 3 years
Other equipment 5 years
Land acquired is recognised at cost and no depreciation is charged as it has an unlimited useful life.
Production assets are being depreciated from the date of commencement of production, on a field by field 
basis with reference to the unit of production method for the commercially probable and proven reserves  33
in the particular field and also taking into account the future development costs to be incurred on these 
respectively for the probable and proven reserves, (taken at the current price). Changes in the prices and 
quantities are applied prospectively to future periods.
Advances paid for the acquisition/ construction of property, plant and equipment which are outstanding 
at the consolidated Statement of Financial Position date and the cost of property, plant and equipment 
under construction before such date are disclosed as ‘Capital work-in-progress’.
5.6. exploration and evaluation assets
The Group adopts the full cost method of accounting for its oil and gas interests, having regard to the 
requirements of IFRS 6: Exploration for and Evaluation of Mineral Resources. Under the full cost method 
of accounting, all costs of exploring for and evaluating oil and gas properties, whether productive or not 
are accumulated and capitalised by reference to appropriate cost pools. Such cost pools are based on 
geographic areas and are not larger than a segment. The Group currently has one cost pool being an 
area of land located in Rajasthan, India.
Exploration and evaluation costs may include costs of license acquisition, directly attributable exploration 
costs such as technical services and studies, seismic data acquisition and processing, exploration drilling 
and testing, technical feasibility, commercial viability costs, finance costs to the extent they are directly 
attributable to financing these activities and an allocation of administrative and salary costs as determined 
by management. All costs incurred prior to the award of an exploration license are written off as loss of 
the year as incurred.
Exploration and evaluation costs are classified as tangible or intangible according to the nature of the 
assets acquired and the classification is applied consistently. Tangible exploration and evaluation assets are 
recognised and measured in accordance with the accounting policy on property, plant and equipment. To 
the extent that such a tangible asset is consumed in developing an intangible exploration and evaluation 
asset, the amount reflecting that consumption is recorded as part of the cost of the intangible asset.
Exploration and evaluation assets are not amortised prior to the conclusion of appraisal activities. Where 
technical feasibility and commercial viability is demonstrated, the carrying value of the relevant exploration 
and evaluation asset is reclassified as a development and production assets and any impairment loss 
recognised.
5.7.  impairment testing For exploration and evaluation assets and property , 
plant and equipment
An impairment loss is recognised for the amount by which an asset’s or cash-generating unit’s carrying 
amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting 
market conditions less costs to sell, and value in use based on an internal discounted cash flow evaluation.
Where there are indicators that an exploration asset may be impaired, the exploration and evaluation 
assets are grouped with all development/producing assets belonging to the same geographic segment 
to form the Cash Generating Unit (CGU) for impairment testing. Where there are indicators that an item 
of property, plant and equipment asset is impaired, assets are grouped at the lowest levels for which  34
there are separately identifiable cash flows to form the CGU. The combined cost of the CGU is compared 
against the CGU’s recoverable amount and any resulting impairment loss is written off in profit or loss of 
the year. No impairment has been recognised during the year.
An assessment is made at each reporting date as to whether there is any indication that previously 
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the 
Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is 
reversed only if there has been a change in the assumptions used to determine the asset’s recoverable 
amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount 
of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have 
been determined, net of depreciation, had no impairment loss been recognised for the asset in prior 
years. Such reversal is recognised in profit or loss unless the asset is carried at a re-valued amount, in 
which case the reversal is treated as a revaluation increase.
5.8. FinanCial assets
Financial assets and financial liabilities are recognised on the Group’s Statement of Financial Position 
when the Group has become a party to the contractual provisions of the related instruments.
Financial assets of the Group, under the scope of IAS 39 ‘Financial Instruments: Recognition and 
Measurement’ fall into the category of loans and receivables. When financial assets are recognised 
initially, they are measured at fair value plus transaction costs. The Group determines the classification of 
its financial assets at initial recognition. 
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are 
not quoted in an active market. Such assets are subsequently carried at amortised cost using the effective 
interest method, less provision for impairment. Gains and losses are recognised in profit or loss when the 
loans and receivables are derecognised or impaired, as well as through the amortisation process.
Loans and receivables are assessed for indicators of impairment at the end of each reporting period. 
Loans and receivables are considered to be impaired when there is objective evidence that, as a result of 
one or more events that occurred after the initial recognition, the estimated future cash flows have been 
affected. 
De-recognition of loans and receivables occur when the rights to receive cash flows from the instrument 
expire or are transferred and substantially all of the risks and rewards of ownership have been transferred. 
5.9. FinanCial liaBilities 
The Group’s financial liabilities include debts, bank overdrafts, trade and other payables and loans from 
related parties. 
Financial liabilities are recognised when the Group becomes a party to the contractual agreements of the 
related instrument. 
Financial liabilities are recognised at their fair value less transaction costs and subsequently measured at 
amortised cost less settlement payments. Amortised cost is computed using the effective interest method. 35
Trade and other payables and loans from related parties are interest free financial liabilities with maturity 
period of less than twelve months and are carried at transaction value which is not materially different 
from their fair value.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or 
expires. 
5.10. inventories
Inventories are measured at the lower of cost and net realisable value. Inventories of drilling stores and 
spares are accounted at cost including taxes, duties and freight. The cost of all inventories other than 
drilling bits is computed on the basis of the first in first out method. The cost for drilling bits is computed 
based on specific identification method. 
5.11. sHare Based payments
The Group operates equity-settled share-based plans for its employees, directors, consultants and 
advisors. Where persons are rewarded using share-based payments, the fair values of services rendered 
by employees and others are determined indirectly by reference to the fair value of the equity instruments 
granted. This fair value is appraised using the Black Scholes model at the respective measurement date. In 
the case of employees and others providing services, the fair value is measured at the grant date. The fair 
value excludes the impact of non-market vesting conditions. All share-based remuneration is recognised 
as an expense in profit or loss with a corresponding credit to ‘Share Option Reserve’.
If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, 
based on the best available estimate of the number of share options expected to vest. Non-market 
vesting conditions are included in assumptions about the number of options that are expected to become 
exercisable. Estimates are subsequently revised, if there is any indication that the number of share options 
expected to vest differs from previous estimates and any impact of the change is recorded in the year in 
which that change occurs. 
In addition where the effect of a modification leads to an increase in the fair value of the options granted, 
such increase will be accounted for as an expense immediately or over the period of the respective grant.
Upon exercise of share options, the proceeds received up to the nominal value of the shares issued are 
allocated to share capital with any excess being recorded as additional paid-in capital.
5.12. a CCounting For inCome taxes
Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities 
relating to the current or prior reporting period that are unpaid / un-recovered at the date of the Statement 
of Financial Position. They are calculated according to the tax rates and tax laws applicable to the fiscal 
periods to which they relate, based on the taxable profit for the year. All changes to current tax assets or 
liabilities are recognised as a component of tax expense in profit or loss. 
Deferred income taxes are calculated using the balance sheet method on temporary differences. This 
involves the comparison of the carrying amounts of assets and liabilities in the financial statement with  36
their tax base. Deferred tax is, however, neither provided on the initial recognition of goodwill, nor on the 
initial recognition of an asset or liability unless the related transaction is a business combination or affects 
tax or accounting profit. Tax losses available to be carried forward as well as other income tax credits to 
the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are always provided for in full. Deferred tax assets are recognised to the extent 
that it is probable that they will be offset against future taxable income. Deferred tax assets and liabilities 
are calculated, without discounting, at tax rates that are expected to apply to their respective period of 
realization, provided they are enacted or substantively enacted at the date of the Statement of Financial 
Position.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in profit or loss 
of the year, except where they relate to items that are charged or credited directly to other comprehensive 
income or equity in which case the related deferred tax is also charged or credited directly to other 
comprehensive income or equity.
5.13. Borrowing Costs
Any interest payable on funds borrowed for the purpose of obtaining qualifying assets, which are assets 
that necessarily take a substantial period of time to get ready for their intended use or sale, is capitalised 
as a cost of that asset until such time as the assets are substantially ready for their intended use or sale. 
Investment income earned on the temporary investment of specific borrowings pending their expenditure 
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Any associated interest charge from funds borrowed principally to address a short term cash flow shortfall 
during the suspension of development activities is expensed in the period.
Transaction costs incurred towards un-utilised debt facility is treated as prepayments to be adjusted against 
the carrying value of debt as and when drawn.
5.14. CasH and CasH equivalents
Cash and cash equivalents include cash in hand and at bank in demand deposits, which are readily 
convertible to known amounts of cash. These assets are subject to an insignificant risk of change in 
value. Cash and cash equivalents are classified as loans and receivables under the financial instruments 
category.
5.15. leasing a Ctivities
Finance leases which transfer substantially all the risks and benefits incidental to ownership of the leased 
item, are capitalised at the inception of the lease, at the fair value of the leased property or the present 
value of the minimum lease payments, whichever is lower. Lease payments are apportioned between 
the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the 
remaining balance of the liability. Finance charges are charged directly in profit or loss of the year.
All leases other than finance leases are treated as operating leases. Operating lease payments are 
recognised as an expense in profit or loss on the straight line basis over the lease term. 37
Where the lease payments in respect of operating leases are made for exploration and evaluation activities 
or development and production activities, these are capitalized as part of the cost of these assets.
5.16. provisions and Contingent liaBilities
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of 
a past event, it is probable that an outflow of resources embodying economic benefits will be required 
to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the 
Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the 
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The 
expense relating to any provision net of any reimbursement is recognized in profit or loss of the year. To 
the extent such expense is incurred for construction or development of any asset, it is included in the cost 
of that asset. If the effect of the time value of money is material, provisions are determined by discounting 
the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of 
money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase 
in the provision due to the passage of time is recognised as other finance expenses. 
Provisions include decommissioning provisions representing management’s best estimate of the Group’s 
liability for restoring the sites of drilled wells to their original status. Provision for decommissioning 
is recognised when the Group has an obligation and a reliable estimate can be made. The amount 
recognised is the present value of the estimated future expenditure. A corresponding item of property, 
plant and equipment of an amount equivalent to the provision is also recognised and is subsequently 
depreciated as part of the asset. The unwinding of the discount is recognised as a finance cost.
Commitments and contingent liabilities are not recognised in the financial statements. They are disclosed 
unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent 
asset is not recognised in the financial statements but disclosed when an inflow of economic benefits is 
probable.
In those cases where the possible outflow of economic resource as a result of present obligations is 
considered improbable or remote, or the amount to be provided for cannot be measured reliably, no 
liability is recognised in the statement of financial position and no disclosure is made.
5.17. segment reporting
Operating segments are identified on the basis of internal reports about components of the Group that are 
regularly reviewed by the chief operating decision maker in order to allocate resources to the segments 
and to assess their performance. The Company considers that it operates in a single operating segment 
being the production and sale of gas.
(This space has been intentionally left blank) 38
6. intangiBle assets : exploration and evaluation assets
Intangible assets comprise of exploration and evaluation assets. Movement in intangible assets is as under: 
intangible assets: 
exploration and 
evaluation assets
Balance as at 1 april 2011 14,110,885
Additions 26,886,988
Balance as at 31 March 2012 40,997,873
Additions 53,569,365
Transfer to development assets
A
(76,139,848)
Balance as at 31 March 2013 18,427,390
The above additions include borrowing costs capitalised of US$ 3,769,364 (previous year: US$ 
1,584,671) during the year. The weighted average capitalisation rate on funds borrowed is 5.8 per cent 
per annum (previous year 5.9 per cent).
The Group has a valid appraisal license till November 2013 and accordingly it is continuing to carry on 
exploration, evaluation and appraisal activities along with the development and production activities on 
the commercially viable reserves within the same Block.
A
Based on a study conducted by an independent expert and their report on 03 December 2012, the 
Group believes that gas reserves discovered in the SSF field in the Block are technically feasible and 
commercially viable. Accordingly, the Group has reclassified the balance of exploration and evaluation 
costs as at 30 November 2012 into development assets. Focus intends to file an integrated development 
plan along with its evaluation of commerciality of all gas discoveries to the Management Committee 
(comprising of representatives of, inter alia, Newbury, iServices, Focus, ONGC and DGH) as required by 
the PSC prior to the or upon completion of the appraisal period. 
(This space has been intentionally left blank) 39
7. property , plant and equipment
Property, plant and equipment comprise of the following:
cost land
Extended 
well test 
equipment
Development / 
Production 
assets
Bunk 
Houses
Vehicles
c
other 
assets
capital 
work-in-
progress
total
Balance as at 1 april 2011 36,437 1,920,338 166,072,377 3,860,383 1,862,208 1,061,793 1,673,006 176,486,542
Additions/transfers - 1,031,458 37,010,640
B
392,313 1,832,201 238,616 1,708,555 42,213,783
Disposals/transfers - - - - - - 1,244,110 1,244,110
Balance as at 31 March 2012 36,437 2,951,796 203,083,017 4,252,696 3,694,409 1,300,409 2,137,451 217,456,215
Additions/transfers - 625,721 105,992,814 981,106 1,123,483 123,491 1,022,958 109,869,573
Disposals/transfers - - 37,399 - 1,156,137 1,193,536
Balance as at March 2013 36,437 3,577,517 309,075,831 5,233,802 4,780,493 1,423,900 2,004,272 326,132,252
accumulated Depreciation
Balance as at 1 april 2011 - 262,442 156,168 1,522,192 610,882 578,067 - 3,129,751
Depreciation for the year - 197,940 484,055 666,172 419,138 151,996 - 1,919,301
Disposals/transfers - - - - - - - -
Balance as at 31 March 2012 - 460,382 640,223 2,188,364 1,030,020 730,063 - 5,049,052
Depreciation for the year - 249,274 1,509,277 755,316 748,148 228,102 - 3,490,117
Disposals/transfers - - - - - - - -
Balance as at 31March 2013 - 709,656 2,149,500 2,943,680 1,778,168 958,165 - 8,539,169
carrying values
At 31 March 2012 36,437 2,491,414 202,442,794 2,064,332 2,664,389 570,346 2,137,451 212,407,163 
At 31 March 2013 36,437 2,867,861 306,926,331 2,290,122 3,002,325 465,735 2,004,272 317,593,083
The balances above represent the Group’s share in property, plant and equipment as per Note 3. 
B
Tangible assets comprising of development/ production assets represent the amount of exploration 
and evaluation expenditure incurred and accumulated up to the date of the first commercial discovery 
declared by the Group on 21 January 2008 in respect of SGL field. Since ONGC has exercised the 
option to acquire a 30 per cent participating interest in the discovered field, accordingly the additions to 
development and production assets represents 63 per cent of the total cost incurred by the participating 
parties. Further, the additions during the year include the expenditure incurred for drilling of further wells 
in the SGL field to enhance the production activity. Also included under development and production 
assets are completed additional production facilities (gas gathering station - 2) in respect of the SGL field. 
The Group commenced production from the new facility from 1 October 2012, and accordingly such 
production assets have been depreciated since this date. 40
As mentioned in note 6, during the year ended 31 March 2013, development assets also include a 
transfer from exploration and evaluation assets, in respect of the SSF field, consequent to the commercial 
viability and technical feasibility of the reserves in the field, based on the report of an independent expert 
and the evaluation made by Group’s management in respect of these reserves. Pending the assessment of 
these reserves by the Management Committee and completion of development for production activities, 
no depreciation has been charged on the same.
Development/Production assets also include borrowing costs capitalised of US$ 8,699,988 (previous 
year: US$ 7,416,354). The weighted average capitalisation rate on funds borrowed is 5.8 per cent per 
annum (previous year 5.9 per cent).
C
These vehicles are taken on finance leases as disclosed in Note 16.
The depreciation has been included in the following headings:
  31 March 2013 31 March 2012
Depreciation included in exploration and evaluation 
assets
1,509,214 1,205,795
Depreciation included in development assets 330,140 199,569
Depreciation included in statement of comprehensive 
income under cost of sales
1,509,277 484,055
total 3,348,631 1,889,419
8. deFerred tax assets / liaBilities (net)
Deferred taxes arising from temporary differences are summarized as follows: 
  31 March 2013 31 March 2012
Deferred tax assets
Unabsorbed losses/credits 124,118,984 92,437,437
total 124,118,984 92,437,437
Deferred tax liability
Exploration and evaluation assets 96,725,907 75,805,470
Development assets/ property, plant and 
equipment
30,847,559 18,407,824
total 127,573,466 94,213,294
net deferred tax liabilities (3,454,482) (1,775,857) 
a) The Group has created deferred tax assets on all its unused tax losses/unabsorbed depreciation 
considering there is convincing evidence of availability of sufficient taxable profit in the Group in the 
future as summarized in note 9. 
b) The deferred tax movements during the current year have been recognized in the Consolidated 
Statement of Comprehensive income. 41
9. inC ome tax Credit
Income tax is based on tax rate applicable on profit or loss in various jurisdictions in which the Group 
operates. The effective tax at the domestic rates applicable to profits in the country concerned as shown 
in the reconciliation below have been computed by multiplying the accounting profit by the effective 
tax rate in each jurisdiction in which the Group operates. The individual entity amounts have then been 
aggregated for the consolidated financial statements. The effective tax rate applied in each individual 
entity has not been disclosed in the tax reconciliation below as the amounts aggregated for individual 
Group entities would not be a meaningful number.
income tax credit is arising on account of the following:
  31 March 2013 31 March 2012
Current tax - -
Deferred tax expense (1,678,625) (1,776,474)
total (1,678,625) (1,776,474)
The relationship between the expected tax expense based on the domestic tax rates for each of the legal 
entities within the Group and the reported tax expense in profit or loss is reconciled as follows: 
  31 March 2013 31 March 2012
Accounting profit for the year before tax 3,072,792 3,132,954
Non-taxable loss (902,166) (1,073,693)
Taxable income 3,974,958 4,206,647
Effective tax at the domestic rates applicable to profits 
in the country concerned
 (1,678,625) (1,776,474)
Other tax credits - -
tax credit (1,678,625) (1,776,474)
Indus Gas profits are taxable as per the tax laws applicable in Guernsey where zero percent tax rate has 
been prescribed for corporates. Accordingly, there is no tax liability for the Group in Guernsey. iServices 
and Newbury being participants in the PSC are covered under the Indian Income tax laws as well as tax 
laws for their respective countries. Considering that both Cyprus and Mauritius have double tax avoidance 
arrangement with India, profits in Newbury and iServices are not likely to attract any additional tax in 
their local jurisdiction. Under Indian tax laws, Newbury and iServices are allowed to claim the entire 
expenditure in respect of the Oil Block incurred till the start of commercial production (whether included 
in the exploration and evaluation assets or development assets) as deductible expense in the first year of 
commercial production or over a period of 10 years. The Company has opted to claim the expenditure in 
the first year of commercial production. To the extent this expenditure remains unutilized, it can be carried 
forward indefinitely to subsequent years for set off against future taxable income. During the year ended 
31 March 2011, the Group had commenced commercial production and has started to generate profits 
in Newbury and iServices. Further during the year ended 31 March 2013, the group has increased its  42
operation as result of capitalisation of new production facility (refer to note 7). Accordingly, the Group 
has started receiving set off of this expenditure against taxable income and management believes there 
is reasonable certainty of utilisation of remaining unutilized expenditure in the future years. Therefore, 
deferred tax asset has been created on unutilized balance of these expenditures.
10. inventories
Inventories comprise of the following:
31 March 2013 31 March 2012
Drilling and production stores and spares 5,814,038 7,868,454
Fuel 79,888 43,955
Goods in transit 80,690 37,175
total 5,974,616 7,949,584
The above inventories are held for use in the exploration, development and production activities, these 
are valued at cost determined based on policy explained in paragraph 5.10. No inventory write downs 
or reversals are recognized in the years ended 31 March 2013 and 2012.
Consumption of inventories of US$319,667 (previous year: US$ 216,808) were recorded as an expense 
under the heading ‘cost of sales’ in the consolidated statement of comprehensive income during the year 
ended 31 March 2013.
11. otHer Current assets
31 March 2013 31 March 2012
Prepayments for
- procurement of debt - 17,894
- others 43,125 108,652 
total 43,125 126,546
Prepayments for procurement of debts represent the proportionate fee paid for the un-utilised facility (refer 
to Note 14).
12. CasH and CasH equivalents
31 March 2013 31 March 2012
Cash at banks in current accounts 7,546,024 248,246
total 7,546,024 248,246
The Group only deposits cash surpluses with major banks of high quality credit standing. 43
13. equity
a uthorised share capital
The total authorised share capital of the Company is GBP 5,000,000 divided into 500,000,000 shares of 
GBP 0.01 each. The total number of shares issued by the Company as at 31 March 2013 is 182,973,924 
(previous year: 182,913,924). During the year ended 31 March 2013, one of the directors has exercised 
his right of share option and has been issued 60,000 Shares.
  For all matters submitted to vote in the shareholders meeting of the Company, every holder of ordinary 
shares, as reflected in the records of the Company on the date of the shareholders’ meeting has one vote 
in respect of each share held.
All shareholders are equally eligible to receive dividends and the repayment of capital in the event of 
liquidation of the individual entities of the Group. 
a dditional paid in capital
Additional paid-in capital represents excess over the par value of share capital paid in by shareholders in 
return for the shares issued to them, recorded net of expenses incurred on issue of shares. 
Currency translation reserve
Currency translation reserve represents the balance on translation of assets and liabilities of Indus Gas 
into US$ till 30 November 2010 when its functional currency was assessed as GBP. Subsequent to 
1 December 2010, functional currency of Indus Gas was reassessed as US$.
s hare option reserve 
The amount of share option reserve represents the accumulated expense recognized by the company in 
its profit & loss on account of share based options given by the Company.
merger reserve
The balance in the Merger reserve represents the fair value of the consideration given in excess of the 
nominal value of the ordinary shares issued in an acquisition of entity under common control. 
14. long term deB t From Banks
Maturity year 31 March 2013 31 March 2012
Non-current portion of long term debt 2018/2021 102,213,678 81,457,230
Current portion of long term debt 16,962,446 15,415,367
total 119,176,124 96,872,597
The Group obtained two term loan facilities from a consortium of banks in the amount of $110,000,000 
and $40,000,000. Against the loan of $110,000,000, Indus Gas has drawn US$ 109,904,073 (previous 
year US$ 109,904,073) and the balance has lapsed and cannot be utilised. The other loan facility of 
$ 40,000,000 has been fully utilised as at year end.  44
Above debt includes a balance US$ 81,530,486 repayable in quarterly instalments of the loan is 
US$3,939,000 with last instalment falling due in May 2018. This loan bears interest of LIBOR plus 500 
basis points payable along with each quarterly instalment. 
Balance of US$ 37,645,638 is repayable through quarterly instalments of US$ 400,000 with last 
instalment falling due in May 2021. This loan bears interest of LIBOR plus 400 basis points payable along 
with each quarterly instalment. 
Interest capitalised on loans above have been disclosed in notes 6 and 7.
The term loans are secured by all the assets of subsidiaries of Indus i.e. iServices and Newbury in 
addition to the Group’s participating interest in the Block RJ-ON/6 to the extent of SGL field and all future 
receivables from gas sales.
The fair value of the above variable rate borrowings are considered to approximate their carrying 
amounts.
15. provision For deCommissioning
Provision for decommissioning
Balance at 1 april 2011 501,392
Additions 244,259
Balance as at 31 March 2012 745,651
Additions 163,864
Balance as at 31 March 2013 909,515
As per the PSC, the Group is required to carry out certain decommissioning activities on gas wells. 
Provision for decommissioning relates to the estimation of future disbursements related to the abandonment 
and decommissioning of gas wells. The provision has been estimated by the Group’s engineers, based on 
individual well filling and coverage. This provision will be utilised when the related wells are fully depleted.
16. FinanCe lease oBligations
Finance lease obligations represent leases entered into for vehicles which are used and operated by the 
Group for the exploration and evaluation activities.
The table below summarises the total liability on account of these finance lease payments:
31 March 2013 31 March 2012
Finance lease 2,692 26,114
Less: current portion 2,692 23,014
non-current portion - 3,100
The finance lease obligations that are payable within the next 5 years from each reported period are as 
follows: 45
amount due as at 31 March 2013
Minimum lease 
payments
interest Principal
Within 1 year 2,848 156 2,692
1-5 years - - -
total 2,848 156 2,692
amount due as at 31 March 2012
Minimum lease 
payments
interest Principal
Within 1 year 25,079 2,065 23,014
1-5 years 3,284 184 3,100
total 28,363 2,249 26,114
17. payaBle to related parties
Related parties payable comprise of the following:
Maturity 31 March 2013 31 March 2012
Current
Liability payable to Focus On demand 55,845,886 49,389,473 
Payable to directors - 13,331
55,845,886 49,402,804
Other than current
Borrowings from Gynia Holdings 
After payment 
of bank loan per 
Note 14
106,053,767 42,540,536
Maturity 31 March 2013 31 March 2012
Liability payable to Focus
After payment 
of bank loan per 
Note 14
- 10,000,000
106,053,767 52,540,536
total 161,899,653 101,943,340
liability payable to Focus 
Liability payable to Focus represents amounts due to them in respect of the Group’s share of contract 
costs, for its participating interest in Block RJ-ON/6 pursuant to the terms of Agreement for Assignment 
dated 13 January 2006 and its subsequent amendments from time to time (hereinafter referred to as 
“Assignment Agreement”).  46
On 31 March 2013 through an amendment to the Assignment agreement between the Group and Focus, 
entire outstanding balance of Focus is converted into a short term liability payable on demand. The 
Group reimburses interest cost incurred by Focus on its borrowings taken from third parties to finance the 
above mentioned short term borrowing subject to a minimum interest rate of 6.5 per cent per annum and 
maximum interest rate of 10 per cent per annum. The actualised interest rate for the entire balance is 6.5 
per cent for the current year (previous year 6.5 per cent).
The management estimates the current borrowings to be repaid on demand within twelve months from the 
statement of financial position date and these have been classified as current borrowings.
Borrowings from Gynia Holdings Ltd. carries interest rate of 6.5 per cent per annum compounded annually. 
Out of this loan from Gynia Holdings Ltd., US$ 52 million is subordinated to loans taken from the banks 
(detailed in note 14) and therefore, is repayable along with related interest subsequent to repayment of 
bank loans in March 2021. Balance of US$ 54 million is repayable along with related interest in the year 
ending 31 March 2019.
Interest capitalised on loans above have been disclosed in notes 6 and 7.
Other payables to related parties comprise of outstanding balances to associate entities and directors and 
are all short term in nature. The carrying values of the borrowings and other payables are considered to 
be a reasonable approximation of fair value.
18. employee Cost
The Group does not have employees. However, cost pertaining to the employees of Focus have been 
included in the cost of sales and administrative expenses in the consolidated statement of comprehensive 
income amounting to US$ 262,325 (previous year US$ 242,652) and US$ 380,253 (previous year US$ 
531,448) respectively.
19. Foreign CurrenC y exCHange (loss)/ gain , net
The Group has recognised the following in the profit or loss on account of foreign currency fluctuations:
  31 March 2013 31 March 2012
Loss on restatement of foreign currency monetary 
receivables and payables
(85,555) (3,268)
Loss arising on settlement of foreign currency 
transactions and restatement of foreign currency 
balances arising out of Oil block operations 
116,450 104,682
total 30,895 101,414
20. operating leases
Lease payments capitalised under exploration and evaluation assets and development/ production assets 
during the year ended 31 March 2013 amount to US$ 45,260,114 (previous year:US$35,972,144 ). No  47
sublease payments or contingent rent payments were made or received. No sublease income is expected 
as all assets held under lease agreements are used exclusively by the Group. All the operating leases of 
the Group are cancellable and there are no future minimum payments for the existing operating leases. 
The terms and conditions of these operating leases do not impose any significant financial restrictions on 
the Group. 
21. sHare Based payment
The Company maintains an equity settled share-based payment scheme adopted and approved by 
the directors on 29 May 2008. Presently, the Company has approved three schemes for the Directors, 
Consultant and Nominated Advisor known as the “Directors’ option agreements”, “Advisers Option 
agreement” and “Arden option deed”, respectively. The Company has no legal or constructive obligation 
to repurchase or settle the options. In accordance with the Plan, upon vesting, the stock options will be 
settled by the issuance of new shares on payment of the exercise price.
The total amount to be expensed over the vesting period is determined by reference to the fair value of 
the options granted. The total expense recognised in the profit or loss under the heading ‘administrative 
expenses’ of the year ended 31 March 2013 is NIL (previous year: US$ 12,188).
The fair values of options granted were determined using the Black Scholes option pricing model that takes 
into account factors specific to the share incentive plans along with other external inputs.
The following principal assumptions were used in the valuation: Expected volatility was determined by 
comparison with implied volatility of Oil and Gas sector stocks and trading volatility of the Company 
available till the grant date. Dividend yield is taken as nil as the Group has not paid any dividend. The 
risk-free rate is the rate associated with a risk-free security with the same maturity as the option. At each 
reporting date, the Group reviews its estimates of the number of options that are expected to vest. The 
Group recognizes the impact of the revision to original estimates, if any, in the profit or loss, with a 
corresponding adjustment to ‘stock option reserve’ in equity.
The inputs to the Black Scholes model for options that have been granted are summarised as follows:
Grant date
Directors and 
advisors
29 May 2008
arden
29 May 2008
Fair value of option using the Black Scholes model at 
grant date (GBP)
0.84 0.62
Exercise price (GBP) 1.64 1.64
Expected volatility 35 per cent 35 per cent
Option life (in years) 5 5
A
Dividend yield - -
Risk-free interest rate 4.99 per cent 5.06 per cent
A 
Consequent to a modification made subsequent to the current year, the option life for advisors has been 
changed to 6 years.  48
The total outstanding and exercisable share options and weighted average exercise prices for the various 
categories of option holders during the reporting periods are as follows:
s hare options granted to d irectors and a dvisors 
All the options granted to the Directors and Advisors are fully vested in earlier years. During the year 
ended 31 March 2013, one of the directors has exercised his right of share option for 60,000 Shares. 
The outstanding balance and exercisable share options granted to directors and consultants for the year 
ended 31 March 2013 were 180,000 having a weighted average price of US$ 1.64 per option (previous 
year: 240,000 with weighted average price of US$ 1.64 per option) and expiry date of 6 June 2013. 
Subsequent to 31 March 2013 all the options have been exercised by the option holders. However based 
upon the request of these holders, the payment has been deferred till the date of sale of such option shares 
and interest at 6% per annum shall be levied from the date of notice of exercise till the exercise value is 
finally remitted to the Company. Issue of shares for such options is in process.
s hare options granted to a rden partners
There was no movement in the outstanding options under this category during the year ended 31 March 
2013 as the Share options granted to advisors on 28 May 2008 are fully vested and consequently, there 
is no accounting implication during the reported period. The outstanding balance and exercisable share 
options granted to advisors for the year ended 31 March 2013 were 76,220 having a weighted average 
price of US$ 1.64 per option (previous year: 76,220 with weighted average price of US$ 1.64 per 
option). In the previous year upon the request of Advisor, the validity of exercise period was extended by 
two years to expire on 6 June 2013. Subsequently on 10 June 2013 the validity of the exercise period has 
been further extended by one year and now the options will expire on 6 June 2014. 
The share options outstanding at the end of the year had a weighted average remaining contractual life 
of 1.18 years (previous year: 1.18 years). 49
22. earnings per sHare
The calculation of the basic earnings per share is based on the earnings attributable to ordinary 
shareholders divided by the weighted average number of shares in issue during the year.
Calculation of basic and diluted earnings per share for the year ending 31 March 2013 and 31 March 
2012 are as follows:
31 March 2013 31 March 2012
Profit attributable to shareholders of Indus Gas Limited, for 
basic and dilutive
1,394,167 1,356,480
Weighted average number of shares (used for basic 
earnings per share)
182,931,020 182,913,924
No of equivalent shares in respect of outstanding options 43,097 57,437
Diluted weighted average number of shares (used for 
diluted earnings per share)
182,974,117 182,971,361
Basic earnings per share 0.01 0.01
Dilutive earnings per share 0.01 0.01
As detailed in note 21 above on Share based payments, the Group has granted options as under:
•	 Share	 options	 granted	 to	 Directors	 and	 Advisors-	 180,000	 Outstanding	 exercisable	 options	
(previous year- 240,000)
•	 Share	 options	 granted	 to	 Arden	 Par tner-	 76,220	 Outstanding	 exercisable	 options	 (previous	 year-	
76,220)
23. related party transa Ctions 
The related parties for each of the entities in the Group have been summarised in the table below: 
nature of the relationship related Party’s name
i. Holding company Gynia Holdings Ltd.
ii. Ultimate Holding company Multi Asset Holdings Ltd. (Holding Company 
of Gynia Holdings Ltd.)
iii. Enterprise over which Key Management 
Personnel (KMP) exercise control (with whom 
there are transactions)
Focus Energy Limited
Disclosure of transactions between the Group and related parties and the outstanding balances as of 31 
March 2013 and 31 March 2012 is as under: 50
t ransactions with parent company
Particulars 31 March 2013 31 March 2012
Transactions during the year with the holding company
Loan taken
Interest
59,086,130
4,427,101
26,040,883
1,414,208
Balances at the end of the year
total payables* 106,053,767 42,540,536
*including interest 
t ransactions with kmp and entity over which kmp exercise control
Particulars 31 March 2013 31 March 2012
Transactions during the year
Remuneration to KMP
 • Short term employee benefits 447,344 499,591
 • Share based payments - 6,010
Total 447,344 505,601
Entity over which KMP exercise control
Remittances 76,525,210 70,434,990
Share of cost incurred by the Focus in respect of the Block 70,466,095 59,813,014
Expenses reimbursed 71,310 1,126,261
Interest on loan 2,549,593 3,775,920
Balances at the end of the year
total payables* 55,845,886 59,389,473
*including interest
Directors’ remuneration
Directors’ remuneration is included under administrative expenses, evaluation and exploration assets 
or development assets in the consolidated financial statements allocated on a systematic and rational 
manner.
Remuneration by director is also separately disclosed in the directors’ report on page 12. 51
24. segment reporting
The Chief Operating Decision Maker (or Chief Executive Officer) reviews the business as one operating 
segment being the extraction and production of oil and gas. Hence, no separate segment information has 
been furnished herewith.
All of the non–current assets other than financial instruments and deferred tax assets (there are no 
employment benefit assets and rights arising under insurance contracts) are located in India and amounted 
to US$ 336,021,358 (previous year: US$ 253,405,921).
The Group has a single product, i.e. natural gas, which is supplied to a single customer, GAIL within India.
25. Commitments and ContingenCies
The group has no contingencies as at 31 March 2013 (previous year Nil).
A summary of the commitments existing as at 31 March 2013 and 31 March 2012 are as follows:
nature of the commitments 31 March 2013 31 March 2012
Group’s share in commitment for purchase of 
equipment and storage tanks 
- 15,660,379
total - 15,660,379
26. a CCounting estimates and judgements
In preparing consolidated financial statements, Group’s management is required to make judgments and 
estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets 
and liabilities at the date of the financial statement and the reported amounts of revenues and expenses 
during the reporting period. The judgments and estimates are based on management’s best knowledge of 
current events and actions and actual results from those estimates may ultimately differ.
significant judgments applied in the preparation of the consolidated financial statements 
are as under:
Determination of functional currency of individual entities
Following the guidance in IAS 21 “The effects of changes in foreign exchange rates” the functional currency of 
each individual entity is determined to be the currency of the primary economic environment in which the entity 
operates. In management’s view each of the individual entity’s functional currency reflects the transactions, 
events and conditions under which the entity conducts its business. Management believes that US$ represents 
the functional currency for each of the entities within the Group. US$ is the currency in which each of these 
entities primarily generate and expend cash and also generate funds for financing activities.
Full cost accounting for exploration and evaluation expenditure
The Group has followed ‘full cost’ approach for accounting exploration and evaluation expenditure against 
the ‘successful efforts’ method. As further explained in Notes 5.6 and 6, exploration and evaluation assets 
recorded using ‘full cost’ approach is tested for impairment prior to reclassification into development 
assets on successful discovery of gas reserves. 52
Impairment of tangible and intangible assets
The Group follows the guidance of IAS 36 and IFRS 6 to determine when a tangible or an intangible asset 
is impaired. This determination requires significant judgment to evaluate indicators triggering impairment. 
The Group monitors internal and external indicators of impairment relating to its tangible and intangible 
assets. Upon the confirmation of commercial discovery in the SSF field in the Block on 3 December 
2012, as detailed in note 6, management has carried impairment assessment of property, plant and 
equipment and intangible assets of the Block. Further management has assessed that no such indicators 
have occurred or exists as at 31 March 2013 to require another impairment testing of property, plant and 
equipment and intangible assets on that date. Management considers entire Block as one Cash generating 
unit for the purpose of impairment testing.
estimates used in the preparation of the consolidated financial statements 
Useful life and residual value of tangible assets
The Group reviews the estimated useful lives of property, plant and equipment at the end of each annual 
reporting period. Specifically, production assets are depreciated on a basis of unit of production (UOP) 
method which involves significant estimates in respect of the total future production and balance reserves. 
The calculation of UOP rate of depreciation could be impacted to the extent that the actual production 
in future is different from the forecasted production. During the financial year, the directors determined 
that no change to the useful lives of any of the property, plant and equipment is required. The carrying 
amounts of property, plant and equipment have been summarised in note 7.
Recognition of provision for decommissioning cost
As per the PSC, the Group is required to carry out certain decommissioning activities on gas wells. 
The ultimate decommissioning costs are uncertain and cost estimates can vary in response to many 
factors including changes to relevant legal requirements, the emergence of new restoration techniques or 
experience at other production sites. The expected timing and amount of expenditure can also change, for 
example, in response to changes in reserves or changes in laws and regulations or their interpretation. As 
a result, there could be adjustments to the provisions established which would affect future financial results. 
The liabilities estimated in respect of decommissioning provisions have been summarised in note 15.
Impairment testing
As explained above, the management carried out impairment testing of property, plant and equipment 
and intangible assets of the Block on 3 December 2012 upon the confirmation of commercial discovery in 
the SSF field in the Block. An impairment loss is recognized for the amount by which the asset’s or cash-
generating unit’s carrying amount exceeds its recoverable amount. To determine the recoverable amount, 
management estimates expected future cash flows from the Block and determines a suitable interest rate 
in order to calculate the present value of those cash flows. In the process of measuring expected future 
cash flows management makes assumptions about future gross profits. These assumptions relate to future 
events and circumstances. In most cases, determining the applicable discount rate involves estimating the 
appropriate adjustment to market risk and the appropriate adjustment to asset-specific risk factors. 53
The recoverable amount was determined based on value-in-use calculations on the basis of gas reserves 
confirmed by an independent expert. Selling price of the gas is based on existing selling price to GAIL 
which is fixed for three years and thereafter with 3% per annum increase for future years. The discount 
rate calculation is based on the Company’s weighted average cost of capital adjusted to reflect pre-tax 
discount rate and amounts to 10% p.a. Management believes that no reasonably possible changes in the 
assumptions may lead to impairment of property, plant and equipment and intangible assets of the Block.
27. Basis oF going ConCern assumption
The Group has current liabilities amounting to US$ 77,948,038 majority of which is towards current 
portion of borrowings from banks and related parties summarised in notes 14 and 17. As at 31 March 
2013, the amounts due for repayment within the next 12 months to banks are US$ 16,962,446 which 
the Group expects to meet from its internal generation of cash from operations. Also during the year, as 
a result of the commencement of the additional production facilities, as summarised in note 7 on Property, 
Plant and Equipment, the expected inflows from the annual take and pay as per the contract with the key 
customer shall be increased significantly in the coming year. In furtherance of the subordination of the loan 
as detailed in note 17, Gynia has also assured the Group to provide support for any cash requirement 
to meet its obligations towards banks not met through internal generation of cash. Further, as detailed in 
note 6, management intends to file an integrated development plan for all identified and commercially 
feasible gas reserves in the coming year to the management committee. Once they are approved, the 
Company’s ability to raise borrowings to fund development expenditure will be further enhanced. Based 
on this, the consolidated financial statements have been prepared on a going concern basis.
28. Capital management poliCies
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going 
concern in order to provide returns to shareholders and benefits to other stakeholders and to maintain an 
optimal capital structure to reduce the cost of capital.
The Group manages the capital structure and makes adjustments to it in the light of changes in economic 
conditions and the risk characteristics of the underlying assets. The Group monitors capital on the basis of 
the gearing ratio. This ratio is calculated as total debt divided by total capital employed. 
Total debt is calculated as total liabilities (including ‘current and non-current liabilities’ as shown in the 
consolidated Statement of Financial Position) of the Group. Total capital employed is calculated as ‘equity’ 
as shown in the consolidated Statement of Financial Position plus total debt.
31 March 2013 31 March 2012
Total debt 299,598,091 204,050,206 
Total equity 60,143,917 58,590,460 
Total capital employed 359,742,008 262,640,666
Gearing ratio 83 per cent 78 per cent 54
The gearing ratio has increased since the previous year due to increase in the drawdown of loans from 
banks and related parties to fund additional exploration, evaluation and development activities of the 
Group.
The Group is not subject to any externally imposed capital requirements. There were no changes in the 
Group’s approach to capital management during the year.
29. FinanCial instruments and risk management
A summary of the Group’s financial assets and liabilities by category are mentioned in the table below.
The carrying amounts of the Group’s financial assets and liabilities as recognised at the date of the 
statement of financial position of the reporting periods under review may also be categorised as follows:
  31 March 2013 31 March 2012
Loans and receivables
non-current assets
 - Security deposits 885 885
current assets 
 - Trade receivables 9,926,029 796,047
 - Cash and cash equivalents 7,546,024 248,246
total financial assets under loans and receivables 17,472,938 1,045,178
Financial liabilities measured at amortised cost:
non-current liabilities
 - Long term debt from banks 102,213,678 81,457,230
 - Payable to related parties 106,053,767 52,540,536
current liabilities
 - Current portion of long term debt from banks 16,962,446 15,415,367
 - Current portion of payable to related parties 55,845,886 49,402,804 
 - Accrued expenses and other liabilities 59,929 257,602
total financial liabilities measured at amortised cost 281,135,706 199,073,539
The fair value of the financial assets and liabilities described above closely approximates their carrying 
value on the statement of financial position date.  55
Risk management objectives and policies
The Group finances its operations through a mixture of loans from banks and related parties and equity. 
Finance requirements such as equity, debt and project finance are reviewed by the Board when funds are 
required for acquisition, exploration and development of projects. 
The Group treasury functions are responsible for managing fund requirements and investments which 
includes banking and cash flow management. Interest and foreign exchange exposure are key functions 
of treasury management to ensure adequate liquidity at all times to meet cash requirements.
The Group’s principal financial instruments are cash held with banks and financial liabilities to banks and 
related parties and these instruments are for the purpose of meeting its requirements for operations. The 
Group’s main risks arising from financial instruments are foreign currency risk, liquidity risk, commodity 
price risk and credit risks. Set out below are policies that are used to manage such risks:
Foreign currency risk
The functional currency of each entity within the Group is US$ and the majority of its business is conducted 
in US$. All revenues from gas sales will be received in US$ and substantial costs are incurred in US$. No 
forward exchange contracts were entered into during the year.
Entities within the Group conduct the majority of their transactions in their functional currency, other than 
finance lease obligation balances which are maintained in Indian Rupees and amounts of cash held in 
GBP. All other monetary assets and liabilities are denominated in functional currencies of the respective 
entities. The currency exposure on account of liabilities which are denominated in a currency other than 
the functional currency of the entities of the Group as at 31 March 2013 and 31 March 2012 is as follows: 
Functional currency Foreign currency 31 March 2013 31 March 2012
total exposure 7,128,289 42,936
Short term exposure US$ Indian rupee 2,692 23,014
Short term exposure US$ Great Britain pound 7,125,597 16,822
Long term exposure US$ Indian rupee - 3,100
The Group’s currency exposure risk towards Indian Rupee is negligible due to the insignificant currency 
balance exposed to such risk. Also, the Group doesn’t maintain significant cash balance in GBP. The 
balance as at 31 March 2013 largely represents funds received from Gynia Holdings Ltd on 28 March 
2013 which are remitted to Focus on 2 April 2013. Therefore, the Group believes its exposure towards 
GBP is negligible.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has 
established an appropriate liquidity risk management framework for the management of the Group’s 
short-, medium- and long-term funding and liquidity management requirements. The Group manages 
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by  56
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial 
assets and liabilities
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual 
undiscounted payments for the liquidity analysis
on demand
1-3 
months
3 months to  
1 year
1-5 years 5+ years total
31 March 2013
Non-interest bearing 1,160,725 59,929 - - - 1,220,654
Variable interest rate liabilities 54,685,161 5,932,511 17,290,760 90,211,779 30,311,321 198,431,532
Fixed interest rate liabilities - - - - 106,053,767 106,053,767
55,845,886 5,992,440 17,290,760 90,211,779 136,365,088 305,705,953
31 March 2012
Non-interest bearing 1,126,261 70,397 187,205 - - 1,383,863
Variable interest rate liabilities 49,196,384 5,215,062 12,332,166 90,215,274 3,827,650 160,786,536
Fixed interest rate liabilities - - - - 52,540,536 52,540,536
50,322,645 5,285,459 12,519,371 90,215,274 56,368,186 214,710,935
Interest rate risk
The Group’s policy is to minimise interest rate risk exposures on long-term financing. Interest rate on short 
term borrowing from Focus is linked to actual interest incurred by Focus capped between 6.5 percent and 
10 percent. The Group is also exposed to changes in market interest rates through bank borrowings at 
variable interest rates. Short term investments of the Group are also at fixed interest rate and therefore, 
don’t expose the Group to risk from changes in interest rate. 
The Group’s interest rate exposures are concentrated in US$.
The analysis below illustrates the sensitivity of profit and equity to a reasonably possible change in interest 
rates. Based on volatility in interest rates in the previous 12 months, management estimates a range of 
50 basis points to be an approximate basis for the reasonably possible change in interest rates. All other 
variables are held constant.
interest rate
+0.50 per cent -0.50 per cent
31 March 2013 1,399,575 (1,399,575)
31 March 2012 1,011,957 (1,011,957) 57
Since the loans are taken primarily for the purpose of exploration and evaluation and development 
and production activities, majority of the borrowing costs are capitalised to the cost of the asset. Hence, 
changes in the interest rates do not have any immediate substantial impact on the profit or loss. 
Commodity price risks
The Group’s share of production of gas from the Block is sold to GAIL. The price has been agreed for the 
current period and for the next three years and the same would be reviewed periodically and reassessed 
mutually by the parties. No commodity price hedging contracts have been entered into.
Credit risk
The Group has made short term deposits of surplus funds available with banks and financial institutions of 
good credit repute and therefore, doesn’t consider the credit risk to be significant. Other receivables such 
as security deposits and advances with related parties do not comprise a significant cumulative balance 
and thus do not expose the Group to a significant credit risk. The Group has concentration of credit risk 
as all the Group’s trade receivables are held with GAIL, its only customer. However, GAIL has a reputable 
credit standing and hence the Group does not consider credit risk in respect of this to be significant. None 
of the financial assets held by the Group are past due.
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